Weekly Business News from Myanmar

The Agribusiness Service Centre (ASC) projects will implement in four townships such as Ayeyarwaddy, Yangon and Mandalay Region and Rakhine State
The implementation of Agribusiness Service Center (ASC) projects will begin in Ayeyawady, Yangon, and Mandalay regions and Rakhine State, according to a press statement issued by the Myanmar Rice Federation (MRF). The four projects will pull in investments of US$140 million, and they are slated to be completed in the 2020-2021 fiscal year, according to the federation. The MRF, the China International Trust Investment Corporation (CITIC) Group, and the Myanmar Agribusiness Public Corporation (MAPCO) signed a cooperation agreement for the ASC projects last Friday at the Park Royal Hotel in Nay Pyi Taw. MAPCO, MRF, and the CITIC Group had signed a Memorandum of Understanding (MoU) on 21 July, 2017 in Nay Pyi Taw. The centers will be constructed in ten states and regions. The consortium submitted a $400-million proposal to the Myanmar Investment Commission to construct 33 centers in states and regions. It is also seeking contracts for international loans and local investments, according to the MRF.
US Agency for International Development (USAID) will promote inclusive agriculture-led growth in Kachin State
US Agency for International Development (USAID) will promote inclusive agriculture-led growth in Kachin State
International Finance Corporation (IFC) revealed that distributed solar solutions could help lower power costs for local businesses in Myanmar
Distributed solar solutions can help businesses in Myanmar bring down their power costs and climate impacts, a study by the International Finance Corporation (IFC) reveals. The study estimates that there are more than 700 megawatts worth of potential commercial and industrial solar projects in Myanmar, which is equivalent to around 10 percent of the country’s existing power generating capacity. The IFC, part of the World Bank group, has released the report “Myanmar Distributed Generation Scoping Study” this month, highlighting the potential of solar power to fill the gap between electricity demand and capacity while diversifying Myanmar’s power generation means. “Clearly with Myanmar’s crucial energy needs, the country’s commercial and industrial businesses are looking for near-term solutions to their electricity challenges,” said Isabel Chatterton of the IFC’s Asia Pacific team.
The border trade between Myanmar and Bangladesh increased USD $ 2.3 million in 2019 -2020 fiscal year when compared to the same period of last fiscal year
Border trade between Myanmar and Bangladesh reached US$ 3.8 million as of 1 November in the 2019-2020 fiscal year, according to a report released by the Ministry of Commerce. Border trade during the period increased by $2.3 million, compared with the same period last year, when the total bilateral border trade was only $1.5 million. The country’s exports to Bangladesh totaled $3.8 million, while its imports were $0.03 million during the period. Usually, Myanmar’s exports exceed imports in bilateral trade with Bangladesh, conducted by sea or land. In bilateral border trade, goods move mainly through the Sittway and Maungtaw trade stations.
Myanmar Government allowed full the foreign investment in large-scale mineral extraction
In its mining sector, Myanmar has allowed full foreign investment in large-scale mineral extraction while small- and middle-scale extraction will be allowed for Myanmar citizens only, according to the Myanmar Investment Commission. Proposals to run mining businesses must be submitted to the Ministry of Natural Resources and Environmental Conservation, and details are available on the website of the Department of Investment and Companies Administration. Till October this year, 1,251 mining blocks ranging from small to large scales were approved in various regions and states across Myanmar.
The border cross economic cooperation between Myanmar and China was conducted in Mandalay
A training course for sustainable economic cooperation between Myanmar and China was launched at the Hotel Mandalay yesterday. Deputy Consul General Ms Li Libei from the Chinese Consulate-General in Mandalay, Economic Consul Ms Yang Sheng and officials delivered opening remarks on the three-day course. Then, Vice President Mr. Chen Xiangqiu from the CNPC Southeast Asia Pipeline Co Ltda and Executive Director Dr Zaw Oo from the Centre for Economic and Social Development (CESD) also delivered speeches. The training course is jointly conducted by the Kunming University of Science and Technology ASEAN Research Center (KUSTARC) and the CESD, with the main objective to promote bilateral trade cooperation between Myanmar and China by clearing unbalanced information about cross border economic cooperation and the China- Myanmar Economic Corridor construction.
The local subsidiary of German multinational wholesale, Metro Wholesale Myanmar is working to boost sales of farmers’ produce
Metro Wholesale Myanmar, the local subsidiary of German multinational wholesale chain owned by Metro AG, says it will help local farmers who have earned good agricultural practices (GAP) certification meet with more buyers. The effort was announced by Metro Wholesale Myanmar Commerical Director Mr Hyacinthe Cloarec during a ceremony to present GAP certificates to farmers in Aungban, Shan State. GAP is a common standard for farm management practices created in the late 1990s by several European supermarket chains and their major suppliers and is now the world’s most widely implemented farm certification scheme. “In December Metro Wholesale Myanmar will return to Shan State to meet with more farmers with GAP certification. Then in January we will take these farmers to Yangon to meet with our customers, so that the farmers will be able to find out directly from potential customers what they need. This will allow farmers to improve sales of their products,” Cloarec said during the ceremony.
The 15th Joint meeting of Myanmar – Japan CCI Business Cooperation Committees (MJBCC – JMBCC) was held in Yangon to speed up bilateral economic cooperation
About 20 Japanese Business Entrepreneurs discussed the business opportunities with Myanmar counterparts in Yangon at the 15th Joint Meeting of the Myanmar-Japan CCI Business Cooperation Committees (MJBCC-JMBCC) on Thursday. The meeting was jointly organized by the UMFCCI and Japan Chamber of Commerce and Industry (JCCI). It intended to increase the trade, investment and business cooperation between the two countries by solving challenges and difficulties. Presidentl, Union of Myanmar Federation of Chambers of Commerce and Industry, Zaw Min Win said “Aiming to speed up bilateral economic cooperation, the two largest business communities in Myanmar and Japan initiated this kind of meeting over 20 years ago. This is the 15 times of organizing such business meeting.” The messages of Deputy Minister at the Office of the State Counsellor U Khin Maung Tin and Japanese Prime Minister Shinzo Abe were also read out at the meeting.
Philippine conglomerate Ayala Corporation, buys 20 percent stakes in two of Serge Pun’s listed companies for a total USD $ 238 million
Philippine conglomerate Ayala Corporation will take 20 percent stakes in two of Serge Pun’s listed companies for a total of US$238 million, making the Myanmar tycoon the first to benefit from recent market liberalisation allowing significant foreign ownership of listed holdings. Ayala, with investments in real estate, telecommunications, energy and infrastructure, will acquire stakes in Singapore-listed Yoma Strategic Holdings and Yangon-listed First Myanmar Investment, becoming the second-largest shareholder in both. The deal, announced on Thursday, will be worth $238 million in total and values the two companies at about $1 billion combined. Both sides said it was the Philippines’ biggest private investment in Myanmar. The deal involves share issues of S$0.45 (US$0.33) per share by Yoma Strategic and K15,000 (US$9.90) by FMI, representing a premium of 37.7pc and 36.5pc over the average traded price on November 12 and 13 respectively.
Myanmar Government plans to combine two key economic Ministries into a single position
The Myanmar government plans to combine the positions of Minister of Industry and Minister of Planning and Finance into a single position, according to the Union Parliament agenda for Friday. According to the agenda, a Union-level representative from the government will explain the plan to parliamentary lawmakers in order to seek their approval. According to a proposal by President U Win Myint, the two ministries will be merged entirely and named the Planning, Finance and Industry Ministry, if lawmakers endorse the plan. In late July, the President’s Office appointed U Soe Win, the Union minister for planning and finance, to concurrently serve as industry minister after U Khin Maung Cho was shuffled out of the position due to performance problems.