Weekly Business News from Myanmar

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  The value of stocks traded on the Yangon Stock Exchange (YSX) increase to K1.48 billion in February compared with K1.25 billion in January 2020

  The value of stocks traded on the Yangon Stock Exchange (YSX) last month was registered at K1.48 billion, a significant increase compared toK1.25 billion in January 2020, according to the monthly report released by the exchange. Compared with January, the volume of shares traded on the exchange showed a small drop in February. While 188,919 shares were traded on the exchange in February, 196,836 shares were traded in January. Yet, the share prices of MTSH, MCB and TMH showed a slight increase in February, according to the monthly report of the YSX At present, shares of five listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), and TMH Telecom Public Co. Ltd — are being traded on the stock exchange. In February, the shares of FMI closed at K11,000, MTSH at K3,950, MCB at K8,200, FPB at K22,500, and TMH at K2,800 as per YSX’s monthly data.
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  In partnership with Yoma Bank, Prudential Myanmar Life Insurance Limited has signed with Yoma Bank to provide Myanmar customers with life insurance solutions.

  Prudential Myanmar Life Insurance Limited, a subsidiary of UK-based Prudential plc, has signed a partnership with Yoma Bank to provide Myanmar customers with life insurance solutions. The two firms signed a memorandum of understanding allowing Yoma Bank to distribute Prudential Myanmar’s savings and protection products at its branches across the country, according to a release on March 5. Yoma Bank has over 80 branches across 43 cities. The announcement comes after the Insurance Business Regulatory Board (IBRB) on March 4 released three directives, including one - Directive No 2/2020 - allowing banks and microfinance institutions to operate as agents selling insurance after obtaining approval from the Central Bank of Myanmar and Microfinance Business Supervisory Committee. The practice, known as bancassurance, is expected to help insurance providers extend the reach of their products. According to research commissioned by KBZ MS, the total bancassurance channel in Myanmar could grow to K2 trillion [US$1.3 billion] if applied to the total projected insurance market in Myanmar by 2029.
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  Kachin Government and Myanmar Heng Ya Investment Development Co., signed a MOU for the development project of Kampaiti Business Park

  The Kachin State Government and Myanmar Heng Ya Investment Development Co. Ltd signed a Memorandum of Understanding for developing the Kampaiti Business Park yesterday at the state office. At the event, U Wei Lin, Kachin State Minister for Finance, Revenue, Planning and Commerce spoke about implementing the business park project in line with the existing law. He also discussed matters related to job creation, trade promotion at Kampaiti gate, cooperation to combat illegal trade, and business opportunities for local people. The managing director of Myanmar Heng Ya Investment Development Co Ltd also provided details on the project.
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  Myanmar Government faced setbacks in enforcing compliance with Myanmar’s Extractive Industries Transparency Initiative (EITI)

  The government says it lacks the mechanisms to force companies to disclose ownership information through a public registry, which are part of recent measures to clean up corruption in the extractive industry. Myanmar’s Extractive Industries Transparency Initiative (EITI) unit, a government body under the finance ministry, held a press conference on February 28 to address criticisms over those measures. According to a report released by natural resources expert Charlotte Boyer on the same day, out of a total of 163 extractive companies, 121 submitted information about their beneficial owners, but 31 of those had major flaws or disclosed insufficient information. The “significant gaps” in their submissions undermined the credibility of the data or showed a weak understanding of the beneficial ownership requirements, the report said.
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  The companies will invest USD $ 24 million in CMP garment and bag making business in industrial zones in Yangon Region

  Companies will engage in CMP garment and bag making businesses in industrial zones in the Yangon Region including Thilawa Special Economic Zone by investing nearly US$24 million, according to the Yangon Region Investment Committee.
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  Myanmar’s latest Purchasing Manager’s Index (PMI) shows slowdown in Myanmar’s manufacturing businesses

  Myanmar’s latest Purchasing Manager’s Index (PMI) figure for manufacturing is indicating that manufacturing businesses are slowing. IHS Markit, a London-based information provider, released its report on Myanmar’s Manufacturing PMI yesterday. The headline IHS Markit Myanmar Manufacturing PMI is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases. Any figure greater than 50 indicates overall improvement of the sector.
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  Myanmar will set standards to ensure the quality of locally produced and imported steel and iron

  Myanmar will soon set standards to ensure the quality of locally produced and imported steel and iron, a senior official said. U Kan Chun, managing director of No.1 Heavy Industries Enterprise under the Ministry of Planning, Finance and Industry, said standards will be published this year for deformed bar, three types of hot-rolled plate and one type of cold-rolled plate. “Myanmar is the only country in ASEAN with no standards for iron and steel,” he said during a recent forum on the emerging metal industry in Mandalay. “These standards will do a lot to ensure the quality of iron and steel imported from other countries. Their competitiveness, which local producers are worried about, could be prevented,” he added
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  Singapore listed Yoma Strategic Holdings expands into Myanmar’s logistics industry

  Yoma Fleet, a subsidiary of Singapore-listed Yoma Strategic Holdings, has launched a truck and trailer rental service, YomaRentals.Asia, targeting logistics companies during periods of peak demand. Logistics is an important sector in Myanmar and the government’s National Logistics Master Plan, drawn up by the transport and communications ministry with aid from the Japan International Cooperation Agency, forecasts that cargo movement to and from Myanmar will double to 312 million tonnes by 2030 compared to 169 million tonnes in 2015. “We see a huge market potential in renting out trucks and trailers. According to the government’s Road and Transport Administration data there are currently 56,000 10/12-wheeler trucks left in the market and there’s only about 15,000 semi-trailers. Most of those rigid trucks are going to go away. No one can afford to replace a 12-wheeler, they are just too expensive,” said Allan Davidson, head of vehicle rental and leasing at Yoma Fleet.
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  Myanmar mineral export increased USD $ 579 million between 1 October and 31 January 2020 when compared to the same period of last fiscal year

  Myanmar’s mineral exports showed a marked climb this fiscal, touching US$907 million between 1 October and 31 January, an increase of $579 million compared with the year-ago period, according to data from the Ministry of Commerce. Last year, mineral exports were pegged at just $328 million. Both private and public sector mineral exports witnessed an increase in the current fiscal, with private sector exports valued at $452.458 million and public sector exports estimated at $454.87 million. Of the seven export groups, exports of agricultural goods, minerals, fishery, and finished industrial goods showed an increase, while the exports of livestock, forest products, and other goods declined.
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  The 2th Private Sector Development Committee Meeting was held in Nay Pyi Taw to implement effectively matters including in the framework of private sector development

  Chairman of Private Sector Development Committee, Vice President U Myint Swe addressed 12th Private Sector Development Committee Meeting and coordination meeting of Ease of Doing Business Ranking Promotion Working Group at the Ministry of Commerce in Nay Pyi Taw, Friday. At the meeting, the Chairman of the Committee, Vice President U Myint Swe said to implement effectively matters including in the framework of private sector development, the committee was formed on 24 October 2016 with 20 members and the term of the committee has been over three years. The committee has passed a total of 96 resolutions, and of which 79 points have been implemented, and the remaining 17 points are being undertaken. The 31st meeting of the Committee was held in December 2019 and there were a total of 369 points of suggestions from entrepreneurs.