Weekly Business News from Myanmar

Kayah State Government’s fast tracking of Chinese company’s proposal to invest in Loikaw’s industrial zone has angered by local communities
The Kayah State government’s fast-tracking of a Chinese company’s proposal to invest tens of millions of dollars in a forgotten industrial zone in the state capital has angered local activists, politicians and armed groups. When the Kayah State government revealed its plan to overhaul the Loikaw industrial zone in January 2018, timber merchant U Tezar Win Tun was one of the few businesspeople to show enthusiasm. Established in the state capital in 2007 by a local military commander, the 817-acre zone lacked basic infrastructure and had always struggled to attracted businesses. Empty plots were allegedly used to store illegal timber and illicit drugs.
Domestic investments increased over K 300 billion in 11 months of the current financial year when compared to the same period of previous year
Investments by Myanmar citizens in the country exceeded K1,700 billion in the past 11 months of the current financial year2019-2020, an increase of over K300 billion compared to the corresponding period of the previous FY, according to data released by the Directorate of Investment and Company Administration (DICA). Between 1 October and 28 August in the current FY, 118 local enterprises were allowed to invest in the country by the Myanmar Investment Commission and the state and region investment committees. Domestic investments have reached K1,710 billion so far, including the expansion of capital by existing enterprises, as per the DICA’s data. Domestic investors pumped K1,368 billion into 151 projects in the corresponding period of the 2018-2019 financial year.
Myanmar’s trade with foreign countries through border gates reached over USD $ 9.6 billion in the 2019 – 2020 financial year
Myanmar's trade with foreign countries through border gates reached over 9.6 billion U.S. dollars as of Aug. 28 in current 2019-2020 fiscal year (FY) which started in October, according to figures released by the Commerce Ministry, Xinhua reported. During the period, the country's export via border gates earned over 6.4 billion U.S. dollars, while its import garnered over 3.1 billion U.S. dollars.
More than 47,000 bags reserved rice sold at fairer price within two months of this year
Over 47,000 bags (108 pounds per bag) from reserved rice have been sold between 10 July and 8 September, according to Myanmar Rice Federation (MRF). Of them, Yangon traders made the most significant purchase with 31,990 bags, followed by Nay Pyi Taw with 4,300 bags. Additionally, 3,600 bags are sold in Mon State, while 2,420 in Taninthayi Region, 2,000 in Chin State, 1,373 in Mandalay Region, 1,000 in Kayah State, 400 in Bago Region, 400 in Magway Region and 100 in Sagaing Region. A total of 500,000 bags from reserved rice have been planned for sales. As of 8 September, 47,583 bags have been sold, and 452,417 bags are still in stock for sale. Regarding the rice purchase at a much fairer price, those interested retailers and factories can contact through mobile numbers 09-694386994/5 of MRF and 09-694386996 of Myanmar Rice and Paddy Traders Association. At present, MRF purchased the rice bags at K22,400 per pack from the Consumer Affairs Department and distribute them at K22,800 per 108-pound bag to the registered retail shops, to pay storage charges.
Yangon City Development Committee (YCDC) received over 1,000 building permit applications in five months of operations
The Yangon City Development Committee (YCDC) has received over 1,000 building permit applications through the Yangon Building Permit System (YBPS), a fully automated system making all processes related to building permits including inspection requests completely online, significantly improving processing times, in just five months of operations. The YPBS was designed to boost private investment in the city’s construction sector. The system, an initiative of IFC, aims to reduce work procedures, eliminate the need for paper applications, and cut frequent meetings between staff and applicants. “The YBPS online application system has shown to be effective as building professionals can submit their applications anywhere and at any time. This had a significant positive impact during COVID-19,” said Daw Hlaing Maw Oo, YCDC Secretary.
Foreign direct investment (FDI) surpassed USD $ 5 billion and need USD $ 500 million to meet FDI target for the current financial year
Myanmar Investment Commission has approved over $ 5.15 billion of foreign direct investment as of September 4 since the beginning of the 2019-2020 fiscal year. Over $3.94 billion came from 234 investment proposals while the rest came from investment expansion from the existing foreign investments. As for local investment, the commission has approved over $412.2 million and K1,851 billion while $266.27 million and K1,506 billion came from 123 new investments and the rest from investment expansion. Under the Special Economic Zone Law, the country also approved $160.787 million in investments into the special economic zones.
Myanmar – China border trade decreased by USD $ 188 million as of 28 August in the 2019 – 2020 financial year
Myanmar border trade with China has registered a decrease of US$188 million between 1 October and 28 August in the current financial year 2019-2020, according to the Ministry of Commerce. Data from the Ministry of Commerce show the value of Myanmar-China border trade in all five border areas touched over $5.26 billion in the current financial year, which significantly plunged from over $5.45 billion recorded in the year-ago period. This FY, border trade values totalled $4.35 billion through Muse border, $128.6 million via Lweje, $491.83 million via Chinshwehaw, $279.86 million via Kampaiti, and over $4.94 million via Kengtung. The Commerce Ministry’s data showed a drop in trade value through all those border areas between Myanmar and China, except Chinshwehaw. The decline in trade is attributed to the trade suspension and trade delay amid the tight security measures of coronavirus. China has been stepping up border control measures to contain the spread of the coronavirus infection.
Myanmar sets to export 4 million tonnes of rice in the next 2020 – 2021 financial year
Myanmar targets to export four million tonnes of rice and broken rice in the coming financial year 2020-2021, said Vice President U Aung Than Oo of Myanmar Rice Federation (MRF). “We intend to reach the rice export target at four million tonnes. At present, we see an increase in our production. Moreover, there are no erratic weather records this year. Therefore, the country has planned to export four million tonnes for next FY,” he added. MRF expected to ship 2.4 million tonnes of rice, and broken rice in the current FY and the country meet the export target before the financial year-end. Between 1 October and 21 August, Myanmar sent over 625,214 metric tons to neighbouring countries through border trade, while over 1.8 million tonnes of rice and broken rice were shipped to foreign trade partners via maritime trade, totalling over 2.4 million tonnes. A surge in rice exports through sea trade was contributed to meeting year’s export target, MRF stated.
Myanmar government has extended the deadline of tax payment until end of year to aid COVID hit businesses
The Myanmar government has again extended the tax payment deadline, giving pandemic-hit businesses across the country until the end of December to make payments as they grapple with the impact of a second wave of COVID-19. The Ministry of Planning, Finance and Industry (MOPFI) announced on Monday that the government had eased the deadlines for paying quarterly income tax and monthly commercial tax for small and medium-sized enterprises, as well as CMP (garment and textiles), and hotel and tourism businesses, for the current fiscal year (2019-20). Income tax payments that were originally supposed to be paid by March 31 for the second quarter, June 30 for the third quarter and Sept. 30 for the fourth quarter can now be made through Dec. 31.
Myanmar import value increased USD $ 1.16 million as of 21 August in the current financial year
The value of Myanmar’s imports between 1 October and 21 August in the current financial year 2019-2020 stood at US$17.27 billion, an increase of $1.16 billion from $16 billion registered in the year-ago period, according to the data released by the Ministry of Commerce. The value of imports in the consumer, capital, intermediate goods, and CMP businesses groups rose significantly in the current financial year. Nearly 11 months of the current FY, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts, were brought into the country. Their import value was estimated at $6.5 billion. The figure was $1.49 billion higher compared to the same period in the previous FY. Meanwhile, Myanmar imported consumer products worth $3 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed an increase of $1.34 million compared with the same period in the previous FY.