Weekly Business News from Myanmar

Developer Mandalay Myotha Industrial Development brushed off human rights concerns and accusations in relation to the Myotha Industrial Park in Mandalay
DEVELOPER Mandalay Myotha Industrial Development has brushed off human rights concerns and accusations in relation to the Myotha Industrial Park in Mandalay, while the International Federation for Human Rights argued that the process for the establishment of the park underscores the failure by the developer to conduct proper human rights due diligence. Tensions and confrontations between police officers and farmers have begun to simmer down, regarding the cultivation on land confiscated three years ago for the Mandalay Myotha Industrial Park project, according to a local abbot. “Why we are now calm and composed on this issue is because we’ve assumed that the new government would solve this by negotiating between the company and the farmers. “If the farmers clamour on this issue, the acts of the farmers will be excessive while the government and the company are calm without conducting anything,” said U Vilatha, an abbot, from Ma-au Yoo monastery in Thanbo village.
Two new taskforces were formed by Dawei SEZ Management Committee to monitor and facilitate Dawei SEZ’s development
TWO taskforces have been formed to review Dawei SEZ’s development: one will focus on problems encountered with the developer for the initial phase, the other on upgrading an existing two-lane road connecting Htee Khee to an ASEAN-standard highway. The initial meeting between the two taskforces – held in Nay Pyi Taw from September 20 to 21 – aimed at assigning which department and personnel should be involved in which taskforce, said U Myint San, vice chair of Dawei SEZ Management Committee on September 26. The 8th Joint Coordinating Committee (JCC) meeting, which had its first occurrence under the NLD-led government, was held in Thailand on June 29-30. It decided to seek parliamentary approval before asking Thailand for a soft loan to fund the two-lane project and forming the two taskforces, within September. Commerce minister U Than Myint and Arkhom Termpittayapaisith, Thailand’s transport minister, are co-chairing the JCC.
Myanmar and Israel celebrated strong economic relations by re-ratifying the trade agreement between the two countries on the reciprocal promotion and protection of investment
The Israeli Embassy has announced the re-ratification of the trade agreement be¬tween the two countries, the Reciprocal Promotion and Protection of Invest¬ments. First ratified on Octo¬ber 2014, the agreement marks 3 years of success¬ful trade, bilateral, and diplomatic relations. The agreement encourages businesspeople and companies from both countries to engage in bilateral investments, ex¬pand trade volume, and contribute to each na¬tion’s development. “We hope that the agreement will help bring together businesses from both countries and boost economic cooperation between Israel and Myan¬mar companies,” Daniel Zohar Zonshine, the Is¬raeli ambassador to My¬anmar, said.
Singapore microfinance company Hayman Capital provided loans worth over K21 billion to assist over 40,000 Myanmar SMEs
Singaporean microfinance company Hayman Capital has provided loans worth over K21 billion to Myanmar small businesses and vendors. The loans will be divided into two categories: individual loan and group loan. The loan repayment period is set between 6-18 months, according to Sultan Marenov, Managing Director and CEO of Hayman Capital. “As of the end of August, we have provided K21.5 billion to approximately 40,000 small businesses and vendors. In May, we loaned to approximately 30,000 borrowers and have added nearly 10,000 borrowers in the last 5 months,” Sultan Marenov, said.
To promote business development in the Yangon Region, a three year project focusing on the improvement of industrial zones will be implemented (Yangon Region Chief Minister, U Phyo Min Thein)
THE development of Cocokyun township covering the islands in the northeastern Indian Ocean, as well as the flight and maritime access between the islands and the mainland, are included in Yangon Region’s plan, according to Chief Minister U Phyo Min Thein. Yangon Region will implement a three-year project which will focus mainly on the improvement of industrial zones via tackling utilities and services, ranging from supply of power and water to waste management. The priorities will focus on establishing new industrial zones and strengthening existing ones. In order for businesses to develop in Yangon Region, a three-year project will be drawn up, he announced.
One of the Myanmar's well known premium brand, Genius Coffee, plans to significantly increase its production to 150 tonnes this year
Aung Nay Lin Htun Co, a Myanmar firm that is well known for its premium brand, Genius Coffee, has planned to significantly increase its production from 10 tonnes of coffee last year to 150 tonnes this year. Lay Lay Myint, the firm’s managing director, said in an exclusive interview that rising demand from local and foreign merchants had driven the substantial growth of its coffee production over the past few months. “Like other businesses, our production largely depends on the quality of our products. We are now trying to boost the sales of our products locally and regionally,” she said. She said Genius Coffee had taken some market share in Cambodia soon after the firm opened its first foreign branch in Phnom Penh. The company also has plans to expand to Siem Reap, thanks to the rising demand.
The trade agreement between ASEAN, Australia and New Zealand makes Myanmar products more competitive in the two biggest markets in Australasia
THE free trade agreement (FTA) between ASEAN, Australia and New Zealand makes Myanmar products more competitive in the two biggest markets in Australasia, according to trade commissioners from Australia and New Zealand. There is a huge potential for trade to grow in the agriculture sector, as all three countries are rich in farms and fisheries. The FTA improves the efficiency, transparency and certainty in import-export processes. The AANZFTA seminar was held in Park Royal Hotel in Yangon on September 14. Shwe Sin Oo, deputy director of the Department of Trade under the Ministry of Commerce, presented an overview of certificates of origin and verification processes related to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). The Australian and New Zealand officials explained the specific trade opportunities which derive from the FTA.
Banking industry Executives have warned of possible economic disruption unless a deadline for complying with the new lending regulations is eased
Banking industry executives have warned of the possibility of severe disruption to the economy unless a deadline for complying with new lending regulations is eased, the Nikkei Asian Review reported last week. The regulations, some of which replace rules made nearly 30 years ago, were published by the Central Bank of Myanmar in July after being drafted with assistance from the International Monetary Fund. Industry executives say “unrealistic deadlines” for compliance could put some of the country’s 28 banks in jeopardy, the NAR reported on September 22. The regulations, most of which took effect on July 7, include stricter treatment of non-performing loans, an increase in minimum capital requirements and higher risk weightings for fixed assets and some kinds of loans.
Metro Cash & Carry, international specialists in wholesale and food retail, recently entered Myanmar and started constructing a warehouse in Thilawa Special Economic Zone (SEZ) earlier this month
Metro Cash & Carry, an international specialist in wholesale and food retail with a presence in 25 countries, recently entered Myanmar by kicking off construction of its warehouse in Thilawa special economic zone earlier this month. Tiparayat Kaewsringarm, deputy CEO of Metro Wholesale Myanmar, the company’s Myanmar subsidiary, said in an interview that the firm would not have physical outlets in the nation unlike other countries that it operates, and only operate through the warehouse in Thilawa SEZ. She said establishing the firm’s footprint would provide Myanmar with professional service solutions, high-quality and safe products. She believes its market entry will support the nation’s growth.
India formed a Myanmar chamber of commerce in Yangon to boost trade and forge closer economic ties with Myanmar
INDIA has formed a Myanmar chamber of commerce in Yangon to boost trade and forge closer economic ties with the country. The move follows Indian Prime Minister Narendra Modi’s visit here on September 5-7 and also comes after India imposed import restrictions on Myanmar’s pulses and beans last month. Currently, trade between the two countries amounts to around US$2 billion. “Considering the proximity and size of both our economies, India’s trade with Myanmar is still very much lagging behind China, Japan, South Korea, Thailand and even Singapore. Our primary objective is to double trade to around US$4-$5 billion over the next 2-3 years. - Sunil Seth, Indo-Myanmar Chamber of Commerce “We want to focus on helping Indian businesses invest in Myanmar and vice versa.