Weekly Business News from Myanmar

To boost the growth of the manufacturing sector, the government plans to link SEZs and domestic industrial zones
SEZs and domestic industrial zones SPECIAL Economic Zones (SEZs) in Myanmar are considered by the Ministry of Industry as the main pillar of economic development, according to the ministry’s spokesperson. The government aims to boost the growth of manufacturing sector by linking the SEZs and domestic industrial zones. U Ko Ko Lwin, permanent secretary of the Ministry of Industry, said that technology transfer, infrastructure development and financing are the three benefits SEZs can bring to existing industrial zones across the country. The experience deriving from the SEZs will provide a good basis and experimentation for local investors and factory owners on how to make an industrial zone successful. “The growth rate of the manufacturing sector at present is dropping, so we need to bring the momentum back.
ASEAN business leaders promote China's Belt and Road Initiative (BRI) and note the necessity to align the BRI with the ASEAN blueprint
ASEAN countries, with their enormous demand for infrastructure investments, should capitalise on China’s Belt and Road Initiative (BRI), business leaders from the ASEAN region urged. But there is a necessity to align the BRI with the ASEAN blueprint, and ASEAN needs to iron out the problems derived from the tension between Japan’s involvement in ASEAN infrastructure and China’s increasing presence. Jointly organised by Hong Kong’s government and the Hong Kong Trade Development Council (HKTDC), the Belt and Road Summit 2017 was held on September 11 in the city. Vincent Lo, HKTDC chair, told The Myanmar Times that ASEAN countries are “ready” and “keen” to work with Belt and Road, while the city’s leader, Carrie Lam, stated that ASEAN economies and the bloc’s geography make it a core part of Beijing’s grand scheme.
China and Myanmar discussed the establishment of a China- Myanmar border economic cooperation zone
The establishment of China-Myanmar border economic cooperation zone is being discussed between the two governments. The government of Yunnan Province has invested US$10 billion in Myanmar, while Myanmar entrepreneurs have also invested $100 million in the province, according to a press release. The press release came after a regular meeting between the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and Yunnan Provincial General Chamber of Commerce (YPGCC). Trade value between Myanmar and Yunnan in 2016 reached $6.1 billion. Myanmar's export value amounted to $3.6 billion, and the import value to $2.5 billion.
Myanmar Rice Federation proposed a plan to export rice via seaports in Pathein, Ayeyawady Region and Sittway, Rakhine State and other ports
Ayeyawady Region and Sittway, Rakhine State and other ports Officials from Myanmar Rice Federation have submitted a plan to export rice via seaports in Pathein, Ayeyawady Region, and Sittway, Rakine State, in addition to Yangon ports, especially to Bangladesh. The proposal was made during a regular meeting between Vice President Myint Swe and Myanmar businesspeople at the office of the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry on September 23. The entrepreneurs also demanded the cancellation of a 2 per cent advance income tax for exporting rice to Bangladesh through government-to-government sales agreements.
Business community in northern Shan State urged the government to promote trade and economic development by upgrading the Mandalay-Muse Highway
THE business community in northern Shan State urged the government to take measures concerning trade promotion and economic development, which includes upgrading the Mandalay-Muse highway, at a meeting with Vice President U Myint Swe. The Mandalay-Muse highway is the main route for the country’s border trade, according to the Hong Kong Trade Development Council. A significant proportion of Myanmar exports go through Muse to China. One of the economic corridors under the Belt and Road Initiative, the China-IndoChina Peninsula corridor, covers Muse, Mandalay and Kunming as part of its Sino-ASEAN connectivity blueprint. Upgrading the transport network between Mandalay and Muse is therefore seen as the prerequisite for more trade and commerce to flourish between the two countries. Demands from Shan businesses include repairing the Mandalay-Muse road for trade facilitation, the establishing of an industrial zone and the development of direct connection for international tourists to visit the area.
Businesses should push for better communication with the government to improve legislation on the national economy
THE government should update the business community with the latest economic activities and manage the expectations, according to domestic and foreign investors at a recent investment forum held in the country’s capital. Investors in Myanmar would like to see a push towards further liberalisation of the economy. More people are taking part in the private sector and are investing in infrastructure projects, which serve as a major driver for the national economy. In the meantime, businesses are frustrated by the lack of clarity concerning rules and regulations, as well as the delays in reform efforts. Some important pieces of legislation, such as the new Companies Act, have been delayed.
The 4th edition of North East Connectivity Summit, held in Kohima, discussed opportunities offered by connecting Northeast India with neighbouring countries Myanmar and Bangladesh
Speakers at a two-day forum held in Kohima discussed the potential and opportunities offered by connecting Northeast India with neighbouring countries Myanmar and Bangladesh and further afield. The Federation of Indian Chambers of Commerce & Industry (FICCI) organized “Connect North East 2017,” the 4th edition of North East Connectivity Summit from 22 to 23 September in Kohima with the support from the Government of Nagaland, India. Over 100 speakers gathered to discuss the opportunities for communication, development, trade, business and cultural exchanges offered by the opening up of India’s Northeast and connection with its neighbours. Attendees came from India, Myanmar, Bangladesh, Thailand and even a representative from Russia.
Rising local fuel price is mainly due to high fuel price at the international level and high exchange rates for exports
high exchange rates for exports THE major reasons that the local fuel price is rising are the high fuel price internationally and high exchange rates for exports earning dollars, officials from Myanmar Petroleum Trade Association (MPTA) and gas filling stations told The Myanmar Times on September 20. Daily records of the MPTA suggest that, when compared the fuel prices on September 19 to August 18, one litre of diesel has increased considerably, between K65 and K50. The main reason is that international fuel prices have increased a lot and are much higher now.
In order to protect shareholders from further losing value, First Private Bank (FPB) is considering delisting from the Yangon Stock Exchange (YSX)
First Private Bank (FPB) is considering delisting from the Yangon Stock Exchange (YSX) sitting sliding share prices. The board of directors of FPB met and announced the option of delisting from the nascent capi¬tal market on September 10, U Myint Zaw, CEO of FPB, said. On January 20, FPB be¬came YSX’s fourth listed company and began trad¬ing at K39,000 per share. Since, prices have trick¬led down to their current valuation of K24,000 per share. According to 27th an¬nual board of directors meeting, the companies feels this move is urgent in order to protect the shareholders from losing further value.
Chinese car manufacturers expect car production to commence in Mandalay Industrial Zone in the near future
CHINESE manufacturer expects the production of seven types of cars to commence in Mandalay Industrial Zone in the near future, according to Yan Yu, Shining Star International Holdings (SSIHL) chair. SSIHL is involved in real estate, hospitality, property management, education, healthcare and tourism related enterprises in China and Myanmar. The exact location within the Mandalay Industrial Zone has already been chosen for the production and assembling of vehicles. The application form for the Myanmar Investment Commission (MIC) is being drafted, Mr Yu said at the China-Myanmar Economic Cooperation Forum.