Weekly Business News from Myanmar

Myanmar and France discussed economic cooperation in several sectors such as electricity, energy, oil and gas, water resources and environment management
Myanmar discussed with French cooperation in the sectors of electricity, energy, oil and gas, water resources and environmental management, according to the Ministry of Investment and Foreign Economic Relations. The discussion was made during a meeting between a Myanmar delegation led by Union Minister Thaung Tun and French businesspersons held in Paris on November 18 and 19. The minister invited French companies as Myanmar welcomes responsible investment, expressing the country's cooperation with France in the sectors of electricity, energy, oil and gas, water resources and environmental management. The discussion also included investment opportunities and prioritized sectors in Myanmar.
Shan State Government invited more local and foreign investors for agricultural sector rather than other sectors
Myanmar Investment Commission (MIC) Chair U Thaung Tun is urging get more local and foreign investments be made in the agricultural sector of Shan State. U Thaung Tun said this at the Shan State Investment Fair in Taunggyi, Shan State on November 26. During the event MIC and the Shan State government invited foreign investors to consider the state’s agricultural sector rather than other sectors. “I want to invite investors mainly for Shan State’s agricultural sector. Shan is a state that has good potential for agricultural businesses. We hope to create more sustainable agricultural businesses in the state. Our country is also seeking equal development of agricultural, livestock and industrial sectors,” said U Thaung Tun.
The Central Bank of Myanmar (CBM) attempted to shrink the volume of illegal money transfer between Myanmar and its neighboring countries
In an attempt to shrink the volume of illegal money transfers between Myanmar and its neighbours, the Central Bank of Myanmar (CBM) last week announced the availability of official remittance licences. The move, which commenced on November 15, is aimed at facilitating the legal movement of money by traders and migrant workers based overseas into Myanmar and encourage official remittance businesses to emerge, the CBM said. But banking experts questions its effectiveness in checking widespread illegal Hundi operations, which tap a vast network of traders stationed across borders to bring the money into the country. For the first six months of the year, a total of 556,148 Myanmar migrant workers remitted US$526.7 million to their families in Myanmar, according to the Department of Labour.
Ministry of Agriculture, Livestock and Irrigation signed Record of Discussion (ROD) for project for SAEM in Nay Pyi Taw
The Record of Discussion signing ceremony for “The Project for Strengthening Agricultural Extension in Myanmar (SAEM)” was held between Department of Agriculture and Korea International Cooperation Agency-KOICA at the head office of the DOA, Ministry of Agriculture, Livestock and Irrigation on 19 November. During the ceremony, Dr. Ye Tint Tun, Director-General, Department of Agriculture and Ms. Lee Youn Soo (Chief Representative, KOICA Myanmar office) delivered the general information on the said Project and they continued with the singing of ROD between each other.
Chinese government is planning to build vital trade and logistics links with Myanmar along the Ayeyarwady River for economic corridor
China is planning to build vital trade and logistics links with Myanmar along the Ayeyarwady River as part of the China-Myanmar Economic Corridor (CMEC) to bypass poor road infrastructure. Proposed by China in November 2017 as part of its global Belt and Road Initiative, the CMEC is expected to connect China’s Yunnan Province with Mandalay in central Myanmar before branching southeast to Yangon and southwest to Rakhine. The Chinese have commenced feasibility studies on a road and river route linking Kunming to Mandalay and Yangon via the Ayeyarwady, said President of China Kunming South Asia & Southeast Asia International Logistics Research Institute Liu Jinxin during a forum in Yangon this month.
Japanese companies will upgrade telecommunications infrastructure in Myanmar with the low-interest loan from the Japanese government
Trading house Sojitz Corp and three other Japanese companies will upgrade telecommunications infrastructure in Myanmar in a 7-billion-yen project financed by a low-interest loan from the Japanese government, nippon.com reported. The companies received an order for the project from Myanma Posts & Telecommunications, the country's largest telecom operator, according to a statement released Wednesday.
Singaporean investors see Myanmar as “potential gold mine” despite its low ranking in ease of doing business
Myanmar is a “potential gold mine” and the “last frontier for” investors despite its low ranking in ease of doing business, said a Singaporean investor at a business to business matchmaking event in early November. MyanmarBizConnect Group, a local business matchmaking group, the Singapore’s Association of Small and Medium Enterprises (ASME) and Malaysia’s RHB Bank held the ASME Myanmar Mission Investor Insights event at a hotel in Yangon on November 7. The event was attended by local and foreign businesspeople and officials including former economic adviser to the President U Aung Tun Thet, Deputy Director General of the Directorate of Investment and Company Administration Daw Tin Aye Han, and President of the Singapore Association of Myanmar Leong Lee Seng.
Yangon City Development Committee (YCDC) will remove fiber cables of unregistered installation companies
Unregistered fibre lines which have been installed without permission on lampposts in Yangon Region will be removed, said U Lin Khaing, head of the Engineering Department (Roads and Bridges) of the Yangon City Development Committee (YCDC). According to the YCDC, only 23 companies have been approved and registered to install the fibre lines in Yangon Region. Some fibre lines installation companies are also providing the service without registering with the YCDC, U Lin Khaing added. “Except 23 companies, some companies are still installing fibre lines without permission. So, we need to control them. After finishing an inspection of the wire lines, we have made an official announcement in the newspapers. When we went on an inspection tour on Phay Road, we asked registered companies to come along with us. Then, we conducted an inspection with those companies. And, when we found unregistered lines, we cut them down and took legal action against the unregistered companies,” said U Lin Khaing.
Myanmar imported capital goods import value reached about USD $ 720 million over a month this fiscal year
Myanmar has imported capital goods worth about US$720 million over a month of this fiscal year, exceeding over US$90 million compared to the same period of last fiscal year, according to the Ministry of Commerce. From October 1 to November 8 in the current 2019-2020 fiscal year, import value of capital goods reached US$718.796 million while last year’s value amounted to US$628.171 million. So, this year’s amount exceeded US$90.625 million. From 1988 to July 2019, a total of 50 countries made 1,779 rounds of investment worth overUS$81.249billion in 12 economic sectors. The largest investor is Singapore, followed by China and Thailand. Most investments went to the oil and gas sector accounting for 27.59 percent. The electricity sector accounted for 26.07 percent and production sector 13.94 percent.
The Regional and States Investment Commissions have authority to approve limits can be raised
The investment commissions of regions and states can apply to raise the maximum investments they can approve if required, says a senior official. Permanent Secretary of the Ministry of Investment and Foreign Economic Relations U Aung Naing Oo said, if the investments are for development, the regional and state investment commissions can ask to have the limit raised. At present, regional and state investment commissions have the authority to approve investments of up to US$5 million and K6 billion. Larger sums will require the approval of the Myanmar Investment Commission (MIC). “Limitations on the approval of investment funds are not inflexible. Business investments of up to US$5 million or K6 billion can be approved locally at the region and state level. If the investments are higher, it needs MIC approval. However, MIC is willing to raise those amounts if the investments are intended for development,” U Aung Naing Oo said at the Kachin Investment Forum last week.