Weekly Business News from Myanmar

US companies are keeping an eye on political and economic reforms taking place in Myanmar to exchange views on ways to promote economic relations with the US
There has been an enormous increase in the number of US companies keeping an eye on political and economic reforms taking place in Myanmar, said George Sibley, the deputy chief of mission of the US embassy in Myanmar. Sibley spoke alongside the embassy’s economic unit chief Alyce Abdall at an event at the UMFCCI headquarters in Yangon on August 10. The two officials discussed the Myanmar government’s cooperation with the private sector to maximise economic development and exchanged views on ways to promote economic relations with the US.
Myanmar is projected to generate a maximum of 2,700 megawatts of electricity to meet its demand for power
In 2017, Myanmar is projected to generate a maximum of 2,700 megawatts of electricity, up from around 2,500 MW in 2016, as the population expands and demand for power in the country continues to rise. Yangon, its largest city, is expected to generate almost half, or 1,300 MW of the country’s maximum electricity demand for the year, and that is expected to rise by 30 percent per year in 2018 and beyond. Yet, that is just a fraction of the total energy consumed in Myanmar and 10pc of Thailand’s annual maximum demand. According to the Asian Development Bank’s (ADB) Energy Sector Assessment, Strategy and Roadmap dated December 2016, total final energy consumption in the country totaled some 14,000 MW in 2012-13. The bulk of that energy is produced via traditional biomass – firewood or agricultural wastes – and used mainly for cooking and lighting in rural Myanmar.
Rice export by sea reached 23,443 tonnes in the last week of July, 2017 (Ministry of Commerce)
THE export of rice between Myanmar and international trade partners by sea increased to 23,443 tons in the last week of July, with 7,000 more than that of previous week before 23 July, the Commerce Ministry reported. Between 23 and 29 July, the country sold white rice and parboiled rice to Singapore, Bangladesh, Sri Lanka, Russia, Hong Kong, South Africa, Afghanistan and European members as well as western countries, earning US$6.809 million from the export of rice. The majority of rice has been exported to Bangladesh in the last week of July.
Developing an organic market for Myanmar’s agricultural products will help boost the value of local crops produced for export purposes and farmers’ standard of living
Myanmar has potential to develop an organic market that will help to boost the value of local crops produced for export purposes and farmers’ standards of living. In fact, farmers in Myanmar already use less chemical fertilisers and pesticides compared to their neighbours, yet many are reluctant to venture into the organic market owing to transport hindrances and high costs, said U Wann Tin, owner of Sein Le Oo Organic Farm, which produces organic mushrooms. “Farmers here are aware of the dangers and are already avoiding the use of chemicals when planting fruits or vegetables,” U Wann Tin said.
The first four days of the 54th Gem Emporium in Nay Pyi Taw sold over 3,400 lots of jade worth €240 million (U Min Thu, Jade Business Community Secretary)
Over 3,400 lots of jade have been sold for a total of €240 million in the first four days of the 54th Gem Emporium in Nay Pyi Taw, Jade Business Community secretary U Min Thu said. The sales figures are 998 jade lots sold on August 6 for €50.48 million, 753 lots sold on August 7 for €71.82 million, 857 lots sold August 8 for €78.42 and 842 lots sold August 9 for €48.15 million, according to the official tally. That’s a total of 3,443 jade lots sold between August 6 and 9, raking in a total of €248.86 million. A total of €500 million in sales has been targeted for this year.
Myanmar Fishery Industry expects fish exports to reach US$ 700 million in the fiscal year 2017-18
Fish exports in the 2017-2018 fiscal year are expected to top $700 million, up from last year’s $605 million, said U Khin Nyunt, Direc¬tor of Myanmar Fishery Department(MFD) under the Ministry of Agricul¬ture, Livestock and Irriga¬tion. “Myanmar fishery has been showing signs of healthy growth and in¬creased productivity. However, the ministry should maintain an ac¬tive presence to ensure that fish breeders are equipped with the best technology and industry innovations so yields re¬flect target levels of pro-duction,” MFD’s Director U Nyunt Khin, said.
Yangon will deploy 25-megawatt mobile generator to meet the city’s electricity demand during peak periods and emergencies
Yangon will deploy a new K30 billion (US$22 million) 25-megawatt mobile generator to meet the city’s electricity demand during peak periods and emergencies. The TM2500 generator (pictured below) by GE Myanmar will be funded under the President’s Reserve Fund. GE and its partner, Golden Green Energy, transferred the TM2500 to the Yangon Region Government in the first week of August. The mobile generator, which was delivered to the government within 60 days after the agreement, will be managed by Myanmar Electric Power Enterprise and Yangon Electricity Supply Corporation under the Ministry of Electricity and Energy.
Gas has been discovered at a deep water exploration well in Block A-6 of the Southern Rakhine Basin and tested to be flowing at 50 million cubic feet per day
Gas has been discovered at a deep water exploration well in Block A-6 of the Southern Rakhine Basin in the Bay of Bengal, according to government officials and statements made by operators of the block. Gas was tested to be flowing at 50 million cubic feet per day. Test drilling began at the Pyi Thit-1 appraisal well on June 10. The well, which is located in the south of Rakhine and approximately 90 kilometers west of Pathein, Ayeyarwady, was drilled to depths of 4,570 meters on July 15. A 63-meter column of gas was discovered at 3,542 meters. Following a drill stem test performed across a 29 meter section of the column, gas was found to flow at 50 million cubic feet per day.
The Thai Commerce Ministry’s Department of Foreign Trade led a delegation to Shan State to discuss the promotion of trade and investment between the two countries
The Thai Commerce Ministry’s Department of Foreign Trade has taken a delegation of private business and public officials to Shan State to discuss the promotion of trade and investment between the two countries, Thailand’s the Nation newspaper reported on 7 August. According to the report, the move is in line with Commerce Minister Apiradi Tantraporn’s policy of further expanding business ties in the CLMV (Cambodia, Laos, Myanmar, and Vietnam).
The Memorandum of Understanding (MoU) between China and Myanmar relating to a national-level framework for Kyauk Phyu Economic Zone is likely to be signed by August 2017 (a spokesperson of Kyauk Phyu SEZ Management Committee)
An MoU between China and Myanmar relating to a national-level framework for the Kyaukphyu Special Economic Zone (SEZ) is likely to be signed by August, a spokesperson of Kyaukphyu SEZ Management Committee told The Myanmar Times during an exclusive interview on August 4. Currently, the equity share and terms and conditions between China’s CITIC consortium and Myanmar Kyaukphyu SEZ Holding Company (MKSHC consortium) is still being negotiated but a deal is expected within the month of August, said Dr Oo Maung, vice-chair of Kyaukphyu SEZ Management Committee.