Weekly Business News from Myanmar

China’s Ant Financial Services Group is planning to invest over USD $ 73 million in Myanmar’s Wave Money
China’s Ant Financial Services Group plans to invest US$73.5 million (103.2 billion kyats) in Myanmar’s leading mobile money company, Wave Money. Owned by Alibaba Group, Hangzhou-based Ant is the operator of the online payment service Alipay. Wave Money, a joint venture between Telenor Group and Yoma Strategic, runs a network of more than 57,000 agents across 295 out of 330 townships in Myanmar, covering approximately 89 percent of the country. Yoma Strategic said in a press release on Monday the investment would promote access to financial services for people in Myanmar, as well as upgrade the technological capabilities and security of the country’s mobile financial services. More than 21 million people have used Wave Money’s services, including Wave Pay, for remittances, utility payments, airtime top-ups and digital payments, according to the company.
Ministry of Electricity and Energy will invite local and foreign investors to tender for solar power plant project
The Ministry of Electricity and Energy (MOEE) will invite local and foreign investors to tender for a solar power plant project, said U Soe Myint, Deputy Permanent Secretary at the ministry. The Independent Power Plant should be able to generate 1000 megawatts of solar power, which the government would purchase based on a 20-year Build-Operate-Own system, he said. This could include more than one plant. Those interested in making the investment will be asked to submit proposals not later than June 18. The application cost is K300,000. U Ye Tun Zaw, chief engineer at the MOEE, said renewable energy such as solar power can reduce carbon emissions and create jobs for the locals. "The ministry is seeking various approaches in its longer term plans to generate electricity," he said.
The income of rubber export decreased about USD $ 30 million in seven months in the current financial year when compared to the same period of previous financial year
Myanmar has exported 114,000 tonnes of rubber worth over US$140 million as of April-end in the current financial year since 1 October 2019, which shows a decrease of about $30 million compared with the corresponding period of the previous fiscal, the Ministry of Commerce’s data showed. During a year-ago period, over $170 million worth 136,000 tonnes were shipped to the external markets. At present, rubber prices range K900-1,850 per viss ( a viss equals to 1.6 kg) depending on quality and variety, as per data of the local rubber market. “Rubber export drops amid the coronavirus pandemic due to the falling demand and difficulties in trade.
Ministry of Construction submitted Construction Development Bill to the Parliament with the aims to standardize all the requirements and standards for real estate development
The Ministry of Construction has drafted and sent the Construction Industry Development Bill to the parliament aiming to standardize all the requirements and standards for real estate development. This bill, developed with assistance from KOICA in 2018, also aims to make sure the quality of the buildings is met, which will be checked by the ministry’s ISO lab.
The value of Myanmar maritime trade increase over USD $ 1.9 million in the current fiscal year when compared to the same period of previous fiscal year
The value of Myanmar’s maritime trade for the period between 1 October and 1 May in the 2019-2020 fiscal year totalled US$15.85 billion, an increase of over $1.9 billion compared to the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $6 billion, imports were registered at $9.8 billion. Compared to the same period in the 2018-2019 fiscal year, imports were higher by $1.19 billion, while exports registered an increase of $722.6 million. Meanwhile, the value of trade through the borders was estimated at $6.7 billion, an increase of $351 million. The country’s total external trade reached $22.6 billion, which was higher than the $20.35 billion recorded in the year-ago period.
Two major cities in Myanmar are planning to ease some COVID – 19 business restrictions after 16 May 2020
Myanmar’s hardest-hit region for COVID-19, Yangon, will ease some restrictions in four townships as no new cases have been reported for 20 days, State Counselor Daw Aung San Suu Kyi said on Wednesday. The townships – Mingaladon, Hlaing Tharyar, Shwepyitha and Botahtaung – are among the country’s 10 COVID-19 hotspots which are currently under semi-lockdown. Streets will be unblocked and restaurants and tea shops allowed to reopen. Yangon eateries have been allowed to provide takeaways since March 27, after the country reported its first coronavirus case. The State Counselor, who chairs the Central Committee on Prevention, Control and Treatment of Coronavirus Disease, discussed lifting the restrictions with Yangon’s mayor and deputy mayor, the Union health minister and lawmakers from the four townships on Wednesday.
Eligibility for maximum amount of emergency loan can vary on workforce in factories
The eligibility for the maximum amount of emergency Coronavirus Fund to enterprises hit hard by the pandemic can vary depending on the workforce in factories, said UMFCCI General Secretary U Aye Win. “There are three categories in the loan, designated in priority sectors (the small and medium enterprises (SEMs), hotel businesses and CMP garment factories). Majority of the applications are from SMEs, followed by the hotel businesses and CMP garment factories. However, CMP garment factories received the highest loan amount as they are labour-intensive businesses. SMEs with the small number of workers get access to small amount only,” he stated at the recent press conference of UMFCCI. The emergency coronavirus loan aims to ease the economic burden faced by the virus-stricken businesses, and not to expand the business and put capital for businesses. Mainly, the government intends to help the business keep operations and the workers get the salary for at least three months, he continued.
Myanmar permitted the business of reinsurance and three new categories of general insurance
Myanmar has permitted the business of reinsurance and three new categories of general insurance in the country under two new directives - (4/2020) and (6/2020) - issued by the Insurance Business Regulatory Board (IBRB) on May 12. The three new categories are: Industrial All Risk, Construction All Risk/ Erection All Risk, and Bailee’s Liability Insurance. The aim is to widen insurance coverage in the country. “Whether local or foreign, businesses need insurance coverage under these three categories. We have permitted the three new policies nationwide, including in Thilawa Special Economic Zone,” said U Thant Sin, directors at the Financial Regulatory Department under the Ministry of Planning, Finance, and Industry.
Myanmar government authorities are struggling to conduct inspections the use of Myanmar product label law on the local market due to the COVID – 19 pandemic
Authorities are struggling to enforce the use of Myanmar language on the labels of all products on the local market due to the COVID-19 pandemic, a senior Consumer Affairs official said. U Zayar Swe, deputy director of the Consumer Affairs Department, said his agency has yet to conduct any inspections of manufactures for compliance with the order, which went into effect on April 1. “As we are in the COVID-19 crisis, it is not possible to conduct inspections,” he said. “There have been inspections in the markets, and we will take action against those who refuse to comply with the order.” All product labels in Myanmar are required to include information on storage, allergies, warnings and side effects in the Myanmar language, but some local and imported products haven’t met the requirement yet, said Myanmar Consumers Union Secretary U Maung Maung.
Government plan to create rural jobs, agriculture and construction jobs opportunities to support farmers under the Myanmar’s COVID – 19 Economic Relief Plan (CERP)
Jobs in agriculture and construction will be made available to the unemployed under the COVID-19 Economic Relief Plan (CERP), the Ministry of Agriculture, Livestock and Irrigation (MoALI) announced on May 13. “Jobs will be provided by the Agriculture, Irrigation and Rural Development Department under a Cash for Work program for the grassroots to earn some income,” said U Myo Tint Tun, permanent secretary of MoALI. “The program is being implemented in line with the CERP. It is also intended to create agricultural job opportunities as well as support farmers by providing inputs for cultivation and financing. This will also ensure production does not decline during COVID-19,’’ U Myo Tint Tun added.