Weekly Business News from Myanmar

Survey on manufacturing activity in Myanmar shows contraction for third month in a row
A survey of manufacturing sector activity in Myanmar has showed a contraction in August for the third consecutive month, although the pace of decline remained slight, the Nikkei Asian Review reported on September 1. The Nikkei Myanmar Manufacturing Purchasing Managers' Index, or PMI, rose slightly to 49.3 in August from 49.1 in July, the NAR reported. The index is based on a monthly survey compiled for Nikkei by IHS Markit, with a reading above 50 indicating economic expansion.
VisionFund receives US$4 million loan for a two year term from Japan ASEAN Women Empowerment Fund (JAWEF) to provide microfinance in Myanmar
VisionFund Myanmar says it is pleased to announce the receipt of a US$4 million loan for a two-year term from the Japan ASEAN Women Empowerment Fund (JAWEF), the first fund investing with female micro-entrepreneurs in the Southeast Asia frontier and emerging markets, and from the Microfinance Initiative for Asia (MIFA) Debt Fund, the first microfinance initiative of its size to exclusively target Asian microfinance institutions. According to a press release announcing the receipt dated September 8, both funds are managed by a leading global Impact Investment Manager, BlueOrchard Finance Ltd. VisionFund Myanmar currently has the largest geographical reach in providing microfinance services in the country and the loan will be used to extend services to rural and urban communities.
Bell Pottinger will rebrand its Asian offices, including its Myanmar office, as Klareco Communications after separating from its parent in the UK
The Asian offices of public relations (PR) firm Bell Pottinger, including its Myanmar office, will be rebranded as Klareco Communications after separating from its parent in the UK, said Ang Shih-Huei, Bell Potinger Asia’s CEO, in a September 8 statement to clients. Bell Potinger’s UK business is expected to go into administration this week, after it was expelled from the UK PR trade body on September 4 on accusations of stirring up racial hatred under a contract in South Africa. The firm will be expelled for at least five years. It was the first time that the Public Relations and Communications Association (PRCA) had ejected a PR firm as prominent as Bell Pottinger.
Chinese investors expressed an interest in investing and developing the area cross Yangon River, which overlaps prospective South Korea-led SEZ
CHINESE investors have expressed an interest in investing and developing the area across Yangon River and to construct an international airport, a port and housing projects, according to a local Chinese business association. The proposed locality and projects overlap with the prospective South Korea-led special economic zone. Members of the Yangon-headquartered Myanmar Chinese Chamber of Commerce (MCCC) plan to leverage the upcoming business convention as a platform to attract investments for infrastructure projects from international Chinese businesses. The 14th World Chinese Entrepreneurs Convention (WCEC), an annual business meeting for the Chinese businessmen and the Chinese business diaspora, is going to be held in Myanmar. The event will take place in Yangon from September 15 to 18.
Myanmar’s bargaining power over China’s investment plan is relatively weak, due to lack of infrastructure and funding
As Hong Kong’s second Belt and Road Summit started today in the city The Myanmar Times asked two experts from The Economist Intelligence Unit and Lau China Institute at King's College, London for their input regarding the dynamics of the Belt and Road Initiative (BRI) and China in relation to Myanmar and ASEAN. Much of the focus on China’s grand scheme in Myanmar has surrounded the development of the proposed Kyaukphyu Special Economic Zone (SEZ) and deep-sea port in Rakhine State. However, the BRI has a much broader implication on Myanmar both economically and politically. Back in 2014, Professor Kerry Brown, professor of Chinese Studies and director of the Lau China Institute at King's College, London, wrote that China can no longer reign supreme in many ASEAN member states, despite its economic muscle.
Different views on impact of SMEs Development Law- whether it supports or restricts SMEs development
In 2015 Myanmar adopted the Small and Medium Enterprises Development Law. It is debatable whether or not a law for SMEs is necessary. More important is for government and Parliament to ensure that all relevant laws and policies recognise the needs of SMEs before they are adopted. However, a Law is now in place, and in addition to the usual creation of Committees and other bodies, it seeks to define what a small or medium-sized enterprise is. Most official international definitions of SMEs are based on permanent employee numbers. According to the OECD a micro-enterprise has 1-9 employees, a small one 10-49, and a medium-sized one 50-249. This limit of ‘less than 250 employees’ is used by the EU, although some countries set the limit at 200 employees, while the United States considers SMEs to include firms with fewer than 500 employees. Despite national variations, there is a common recognition that number of employees is the simplest indicator of whether a business is an SME. The European Small Business Alliance (ESBA) recently affirmed this as an essential point, in its response to the review which the EU is currently undertaking of its SME definition.
Indian Prime Minister discussed the promotion of bilateral trade, infrastructure and power supply between India and Myanmar
Indian Prime Minister Narendra Modi discussed infrastructure, trade and promoting investments between India and Myanmar during his first bilateral State visit to Myanmar on September 5-7. In Nay Pyi Taw, PM Modi, Myanmar President U Htin Kyaw and other Union ministers successfully negotiated and finalised agreements on regulating and harmonising travel across the 1,600km border bridging the two countries in the northeast. This includes an arrangement to start a regular bus service connecting Imphal in India and Mandalay. The move is expected to promote bilateral trade between India and Myanmar, which was also discussed at the meeting in Nay Pyi Taw. Both sides agreed that, while robust, there is much potential for growth in trade.
Round-table discussion on Myanmar and BIMSTEC identify tremendous opportunities for trade, communication and culture exchange in the BIMSTEC region
Participants at a Yangon roundtable discussion today point to largely untapped opportunities for trade, communication and cultural exchange in a region of 2.5 billion souls. Parami Roundtable and Mizzima Media Group organised a roundtable on Myanmar and BIMSTEC to commemorate the celebration of 20 years of BIMSTEC. BIMSTEC, known as Bay of Bengal Initiative for Multi-Sectoral, Technical and Economic Cooperation, is a regional cooperation initiative of Bay of Bengal countries, namely, Bangladesh, Bhutan, India, Myanmar, Sri Lanka and Thailand. Recent progress of BIMSTEC has opened up enormous opportunities in trade and value chains within BIMSTEC. But growth of intra-regional investment is negligible and the region is yet to witness any regional connectivity projects on the ground.
One Kachin entrepreneur plans to build a Myanmar gasket factory for supplying international quality gaskets to the global market
It has been ten years since Ko Zin Myo Htik, owner of Myanmar Gasket (MG), left his hometown in Moe Kaung city, Kachin State, for Yangon, where he is now pursuing his dream of building a Myanmar gasket factory supplying international-quality gaskets to the global market. A gasket is a mechanical seal which fills the space between two or more mating surfaces. It serves to prevent leakage from or into the joined objects while under compression and is commonly used in various industries from automotive to oil and gas. MG currently produces Yangon’s best-quality gaskets for the car industry, according to Ko Zin Myo Htik. “Currently, my products are 30 percent cheaper than foreign-made products and better quality than some China-made products of the same price. Compared to the local products, mine are the best,” he told The Myanmar Times. With the exception of steel gaskets, Ko Zin Myo Htik said he can now make gaskets of every size.
Myanmar Thilawa SEZ Holding Public Limited (MTSH),which is listed on the Yangon Stock Exchange (YSX), falls upon trading ex-dividend
Shares of Myanmar Thilawa SEZ Holdings Public Limited (MTSH), which is listed on the Yangon Stock Exchange (YSX), have plunged since trading ex-dividend on August 9. MTSH has proposed a dividend of K260 per share for the financial year ended March 31, 2017. Shareholders will be asked to approve the dividend at the company’s 4th Annual General Meeting (AGM) on September 9. The record date, or deadline for determining MTSH shareholders’ entitlement to a dividend, was August 11. At the close of September 5, MTSH closed at K3,400 per share, down from a high of K4,200 per share on August 8 and K3,700 on August 9.