Weekly Business News from Myanmar

KBZ Bank introduced the COVID – 19 Credit Assistance Program for SMEs to provide urgent financial relief to its existing and new SME customers
With the economic fallout from COVID-19 impacting small and medium-sized enterprises (SMEs) across Myanmar, KBZ Bank has introduced the COVID-19 Credit Assistance Program for SMEs to provide urgent financial relief to its existing and new SME customers. Under the program, launched on 11 June 2020, SMEs can apply for the six-month extension of current Overdraft and Term Loans, six-month deferral on Principal Loans and Interest, and Capitalization on Principal Loans and Interest for up to six months to ease the financial burden they face during this challenging period. These recovery financing options apply to Term, Overdraft, or JICA SME Two-Step loans obtained at KBZ Bank’s SME Banking Department.
Myanmar Government signed a power purchase agreement (PPA) for first LNG plant in Myanmar
Myanmar has signed a power purchase agreement (PPA) to buy electricity from a liquefied natural gas (LNG) plant. The project company of CNTIC VPower Group inked a five-year PPA with the Ministry of Electricity and Energy’s Electric Power Generation Enterprise (EPGE) on June 10. Tariffs and other details have not been disclosed, but the energy ministry’s deputy permanent secretary U Soe Myint told local media on June 8 that the government would be paying around US$0.12 per unit (kilowatt-hour) of electricity. The 400-megawatt LNG-to-power plant, located in Yangon’s southeast Thaketa, started commercial operations on June 14. The plant uses LNG imported from Malaysia. LNG cargoes totalling 190,000 cubic metres were delivered to Myanmar on June 4 a free-on-board arrangement by Malaysia's Petronas.
Business Plan Contest 2020 for a post-coronavirus economic recovery will be held in July 2020
Business Plan Contest 2020 for a post-coronavirus economic recovery will be held starting from July, according to the Directorate of Investment and Company Administration (DICA). Due to the negative impact of the pandemic, the world countries are experiencing economic challenges and hardships. In response to possible challenges and obstacles in the post- coronavirus, Green Hills Development Ltd organizes Business Plan Contest 2020, supported by domestic businesses and business associations in Myanmar. The objectives behind the contest are to contribute towards a post-coronavirus economic recovery, increase job opportunities, promote investments in Myanmar and boost trade with foreign partners. Those who like to participate in the contest or who like to contribute in-kind or financial support can send enquiry to contact@mmbizplancontest2020.com and contact@greenhillsdevelopment.com. Those who will support the contest can send a company or organizational logo.
Foreign investors interest in the Myanmar garment manufacturing sector is still strong despite lower exports in 2019 – 2020 fiscal year
Foreign investor interest in the garment manufacturing sector is still strong despite a fall in the volume of garment exports in fiscal 2019-20, according to the government. Of the 178 foreign enterprises endorsed by the Myanmar Investment Commission (MIC) and permitted to invest in Myanmar between October 1 and May 31, more than three quarters channeled capital into the manufacturing sector, according to the Directorate of Investment and Company Administration (DICA). The data showed that the new investors include garment manufacturers. The MIC will prioritise investments in garment manufacturing going forward as these are labour intensive industries likely to create a large number of jobs, Director General of DICA U Thant Sin Lwin told state media. Manufacturers that are able to produce face masks and other personal protective equipment related to COVID-19 will also be given priority.
Myanmar Government reiterated its desire to press ahead with the proposal to build an international airport in Bago Region
The Myanmar government this month reiterated its desire to press ahead with the proposal to build an international airport in Bago Region, around 80km from Yangon. Transport Permanent Secretary U Win Khant said that the Hanthawaddy airport project will be implemented with a loan from Japan. “There are a lot of prospects for development. I believe we’d be able carry out the project with the loan from Japan,” said the permanent secretary at a press conference held in Nay Pyi Taw on June 10. The legacy project, which was first initiated in the early 1990s, has had difficulties to secure actual investments to take off.
Myanmar hotels and tourism sector attracted K 180 billion investment in the half month of 2019 – 2020 fiscal year
Hotels and Tourism sector has attracted domestic investments of over K180 billion in the half of the current financial year 2019-2020, according to the Central Statistical Organization. The domestic investments in Myanmar’s hotels and tourism sector stood at K202.37 billion in the 2014-2015FY, K434.67 billion in the 2015-2016FY, K132.9 billion in the 2016-2017FY, K341.6 billion in the 2017-2018FY, K129.5 billion in the 2018 mini-budget period (Apr-Sep) and K173.23 billion in the 2018-2019FY, totalling over K1,414 billion. The tourism sector is the worst affected of all major economic sector due to the outbreak of the pandemic. To contain the spread of coronavirus, Myanmar has currently extended precaution restriction period for the international flights up to June-end. The tourism sector completely stopped and all the stakeholders in the hotels and tourism industry are experiencing financial hardships and unemployment.
Legislators in Myanmar revamped governance of industrial zones under new law
Legislators in Myanmar have approved a long-awaited law governing industrial parks that grant regulatory bodies new powers to punish polluters and land speculators. Lawyers and experts, however, warn that effective governance will depend on enforcement and accompanying regulations, which have yet to be announced. Enacted by the Hluttaw on May 26, the Industrial Zone Law seeks to address the prevalent problem of land speculation and improve environmental governance of more than 60 industrial zones across the country. It creates a Union-level central committee to regulate the zones on top of the existing regional and management committees. The law defines the responsibilities of different levels of committees and bans investors from occupying plots for speculation purposes.
Myanmar received rice purchase proposals from three ASEAN countries through Government to Government (G to G) agreement
Myanmar has received rice purchase proposals from three ASEAN countries — Malaysia, Indonesia and the Philippines, said an official of the Ministry of Commerce. The Philippines offered to buy 300,000 tonnes of rice, while Malaysia proposed 50,000 tonnes. Indonesia is currently inspecting rice quality. They will submit purchase order if they like the quality, according to the news released by a property website iMyanmarHouse.com. Earlier, Myanmar yearly exported around 60,000 tonnes of rice to the Philippines. Additionally, Myanmar and Malaysia are discussing to buy rice through Government to Government (G to G) agreement. Beyond regional trade, China’s company recently reached an agreement with Myanmar’s counterpart to buy about 500 tonnes of A 12 sortexed broken rice on 3 June, according to the Ministry.
The contract to upgrade Heho airport expected to be signed in the next three months of this year
The contract to upgrade Heho airport expected to be signed in the next three months of this year
Myanmar Government pulls Swiss firm to scrutinize China backed study on BRI project to connect Mandalay and Kunming
The Myanmar government says it is receiving help from a Swiss company to scrutinize a China-backed study on Beijing’s ambitious railway project to connect Mandalay with Kunming, the capital of Yunnan Province in southwestern China. At a press conference in Naypyitaw on Wednesday, Myanma Railways Managing Director U Ba Myint said the Swiss company has already stepped in as a third party to review the feasibility study for the Muse-Mandalay Electric Railway, submitted by China Railway Eryuan Engineering Group (CREEG). The managing director did not disclose the name of the Swiss company, but said the company will cover all their own expenses for the review.