Weekly Business News from Myanmar

Chinese President will visit Myanmar aiming to move ahead the development of the Kyaukphyu Special Economic Zone (SEZ) in Rakhine State
Myanmar and China are expected to ink a deal on the US$1.3 billion Kyaukphyu port project during President Xi Jinping’s visit this month. The Chinese embassy in Yangon announced today that President Xi will travel to Myanmar on January 17, marking his first visit to the Southeast Asian country in 19 years and the first as China’s leader. This year marks the 70th anniversary since the People’s Republic of China and Myanmar established formal diplomatic recognition. Xi’s visit is seen as an attempt to further cement bilateral relations and pushing ahead the China-Myanmar Economic Corridor scheme as well as other projects under the Belt and Road Initiative.
Myanmar earned over USD 2.49 million from export of finished industrial goods in the first three months of 2019 – 2020 fiscal year
Myanmar earned over 2.49 billion U.S. dollars from export of finished industrial goods in the first three months of present fiscal year (FY) 2019-2020 which started in October, Xinhua reported. As of Dec. 27 of this FY, the export of finished industrial goods or manufacturing goods export topped the list among other export products.
The development of initial industrial estate in Dawei SEZ, Tanintharyi Region makes under progress
In a January 9 statement, the Dawei SEZ Management Committee said changes have been made to the contractual arrangements with Italian-Thai Development Company Ltd (ITD) for the development of initial industrial estate in Tanintharyi Region. According to contract amendment, ITD and other investors must compensate and resettle villagers affected by industrial zone project. It must also adhere to international standards on the environment.
Thailand-based Kasikorn Bank (K Bank) conferred an investment proposal to Ayeyawaddy Farmers Development Bank in Myanmar
Thailand-based Kasikorn Bank (K Bank) conferred an investment proposal to Ayeyawady Farmers Development Bank (A Bank) at Zabuthiri Hall of the Central Bank of Myanmar yesterday morning. Present at the ceremony were CBM Governor U Kyaw Kyaw Maung, deputy governors and directors-general, Thai Ambassador Mrs Suphatra Srimaitreephithak, Assistant Governor Mrs Nawaron Dejusuvan from Thailand’s Central Bank, and officials from A Bank and K Bank.
Experts say that the new K 1000 bank notes bearing the portrait of Bogyoke Aung San will not affect inflation
The release of new K1000 bank notes bearing the portrait of Bogyoke Aung San on January 7 is not expected to impact inflation, economists and banking experts said in response to market concerns. When the Central Bank circulates new notes into the economy, it will retrieve the equivalent amount of old notes to avoid inflation, said U Than Lwin, a former vice governor of the Central Bank of Myanmar. This is in accordance with monetary rules and regulations, he said. U Than Lwin went on to address rumours that the printing costs for the new K1,000 notes are higher than their value. “It is not true. The CBM would not print new currency if the cost of printing a new K1,000 note is more than K1,000,” he said.
The land surveys conducted for the construction of Yangon Special Economic Zone (SEZ) in Dala, Kawthmu and Kyunchangone Townships
YANGON- Land surveys have been conducted for the construction of Yangon Special Economic Zone (SEZ) in Dala, Kawthmu and Kyunchangone Townships, says Phyo Min Thein, Yangon Region Chief Minister. The chief minister attended the opening ceremony of 33/11KV and (5)MVA sub-power station situated between Kayinchaung and Kamarkaloke villages in Kyauktan Township, Yangon Region on January 6th and he delivered the above speech. “We had carried out the land surveys for construction of Yangon SEZ in Dala, Kawthmu and Twanty Townships. Moreover, we plan to establish a new International Yangon Jetty in Kawthmu Township to transfer the current jetties in Yangon to the mouth of the river,” said Phyo Min Thein.
Myeik archipelago has the prospects for the sustainable development for tourism sector
Taninthayi Region where the Myeik, or Margui, Archipelago is located has prospects for the development of tourism. The Myeik Archipelago, which forms a part of the Myanmar coastline, comprises more than 800 unspoiled islands with coral reefs, sea grass, mangroves, and large clay mud, and serves as a habitat for a variety of aquatic animals. The sea-faring Salon ethnic people are also becoming popular on tourist itineraries. Those who wish to invest in the tourism sector in the islands are required to follow the dos and don’ts set by the authorities. The government, on its part, should preserve the traditional culture of the local communities and allow investment which guarantees sustainable development without damaging the natural environment.
Myanmar has potential investments from Hong Kong and ASEAN countries in 2019 – 2020 fiscal years
Myanmar has potential investments from Hong Kong and ASEAN countries such as Singapore and Thailand in 2019-20 FY, according to the Ministry of Investment and Foreign Economic Relations. Among ASEAN countries, Singapore, Vietnam, Thailand, Malaysia, Indonesia, Philippines, Brunei, Cambodia and Laos made investments in Myanmar. A total of 50 countries invested in 1,876 businesses in 12 sectors from 1988 to November 2019 and the total investment is about US$83 billion. In that period, the investment amount of nine ASEAN countries is over US$38 billion and it is over 46 per cent of total foreign investment.
Siam Commercial Bank (SCB) and Ayeyarwady Bank (AYA) Bank signed a memorandum of Understanding (MOU) on cross border transfers between two countries
Two private banks, Ayeyarwady Bank (AYA Bank) in Myanmar and Thailand’s Siam Commercial Bank (SCB) have signed a memorandum of understanding (MOU) to collaborate in the development of cross border payments and fund transfer services between the two countries. This cements an October 2019 agreement between the Central Bank of Myanmar and the Bank of Thailand to promote the official use of the Myanmar kyat and Thai baht when trading at the border. The Central Banks also inked a second MOU to promote financial innovation and services for payments through collaboration between the two countries. “We hope to start the work within the year,” U Hpone Thet Oo, vice president of Financial Institutions and Corporate Banking for AYA Bank, told Myanmar Times.
The companies listed on the Yangon Stock Exchange (YSX) disclose mixed prospects ahead of foreign participation
Companies listed on the Yangon Stock Exchange (YSX) announced mixed prospects for 2020, the year Myanmar is set to allow direct foreign ownership of equities listed on the bourse. The Securities and Exchange Commission of Myanmar announced last July that non-Myanmar individuals and locally-registered entities would be allowed to invest in listed shares of up to 35 percent. Analysts expect the move to spark interest mostly from Yangon-based retail investors, with this to be followed by institutional investors when the bourse has more listings and a broader array of sectors represented by its listed equities. No official timeline was given but analysts expect such trading to begin in the first half of this year. Currently, there are six companies listed on the YSX with a combined market value over K620 billion. Of the companies that released performance announcements this week, First Myanmar Investment (FMI), which is controlled by tycoon Serge Pun, was the most bullish. For the year ended September 30, 2019, FMI announced revenues totaling K168.4 billion, an increase of 29 percent compared to the previous transition period between April 1 and September 30, 2018. However, higher costs resulted in a 27pc dip in earnings to K7 billion for the period.