Weekly Business News from Myanmar

Myanmar rice paddy farmers called Government for failing to buy rice at floor price
Rice paddy farmers in Ayeyarwady Region have complained that merchants are paying them less than the minimum price recently set by the government. The government’s Leading Committee for the Protection and Promotion of the Rights and Interests of Farmers, led by Vice President Henry Van Thio, fixed the floor price for rice this year at 500,000 kyats for 100 baskets of paddy (US$327.30 for about 2.09 tons) in a move to protect the interests of paddy farmers. But farmers in Ayeyarwady Region said merchants only pay for around 450,000 kyats for 100 baskets of paddy. “In Maubin, paddy prices are between 450,000 and 480,000 kyats. This is the price given by merchants and rice millers. Though the government said the minimum price is 500,000 kyats, nobody is paying that price, and the government is not buying directly from farmers, so we can only sell at market rates,” said rice farmer U Hla Htay of Yenangyoung village in Maubin Township.
Chief Minister of Ayeyawaddy Region invites local and foreign business people to invest in the Ayeyawaddy Region
Ayeyawaddy Region Chief Minister Hla Moe Aung urges invites local and foreign business people to do business in the region which is one of the important regions in Myanmar. He said these words at the opening ceremony of Ayeyawaddy Region Investment Forum held at Ngwe Saung Beach on October 24.
Local egg prices dropped by about half due to the high logistical issues
Transportation difficulties have caused the price for a viss (about 1.63 kilogrammes) of chicken eggs to drop by about half, says an industry official. U Kyaw Htin, chair of the Myanmar Livestock Federation said last Saturday that egg prices dropped to K1400 per viss from about K2600 last week, before rebounding to about K2100. “Demand and supply are unbalanced. There have been difficulties in transporting eggs to some border areas like Muse, so prices been declined for a week, even though prices have been high the rest of the year. The weather has been mostly warm this year, which caused production to drop and drive up prices. The latest developments have pushed prices back down again,” U Kyaw Htin said. According to government statistics there are currently around 20 million chickens in Myanmar and 75 percent of them produce eggs.
Vice President expected Ayeyawady integrated Food Industry Complex in Pantanaw to become an initial project for Myanmar fisheries products to penetrate international markets
Vice President U Henry Van Thio, in his capacity as chairman of the Farmer Rights Protection and Interest Promotion Committee, visited Pantanaw Township in Ayeyawady Region, yesterday. His inspection tour to the Ayeyawaddy Integrated Food Industry Complex was accompanied by Union Minister Dr Aung Thu, Deputy Minister Dr Tun Naing, Permanent Secretary U Win Tint and officials. First, Myanmar Fisheries Federation Chairman U Htay Myint gave a short briefing about seafood processing and laboratory analysis for aquatic products. At the project meeting hall, the Chairman gave a briefing on the development of multi-purpose project, preparations for export, coordination with international organizations, ongoing processes and future plans.
The operation to connect Dawei Special Economic Zone (SEZ) to national grid is being set up and it will enable the area to enjoy access electricity within the next two or three years
The necessary infrastructure is being set up to link Dawei Special Economic Zone (SEZ) to the national grid, which will enable the area to enjoy access to electricity within the next 2-3 years, said U Soe Myint, deputy permanent secretary for the Ministry of Electricity and Energy. Backed up loans from the Asia Development Bank (ADB), the ministry is expected to provide up to 300 megawatts of power to the SEZ, said U Myint San, vice chair of Dawei SEZ Management Committee. Dawei SEZ will be able to enjoy electricity after the grid is extended from Mawlamyine to Ye and Dawei by 2021-22 under the first phase of the project, said U Soe Myint. Eventually, the entire region of Tanintharyi will enjoy access to electricity. Currently, the whole of Tanintharyi including Dawei, is not connected to the grid and locals have to buy electricity from private providers at high prices. Electricity rates vary from K200 to K500 per unit, depending on location. At those levels, investors are unlikely to set up operations at the Dawei SEZ, prompting the government to take action, U Myint San said.
The work on the new pipeline for the Zawtika natural gas field urgently needed as it might only start next year due to the negotiations over the cost of the project
Although a new pipeline for the Zawtika natural gas field is urgently needed, work on the project is expected to only begin next year due to negotiations over the cost of the project, officials say. The cost for the new pipeline is supposed to come from revenue generated for the Myanmar Oil and Gas Enterprise (MOGE) by the current Kanpauk-Myaing Kalay pipeline that transfers natural gas from the Zawtika field for local use. MOGE is then required to share the revenue from the existing pipeline with the the Ministry of Planning and Finance. “The Ministry of Planning and Finance said it will approve the cost for the new pipeline only after revenue is fully paid. We’re still negotiating with MOGE on revenue payments and we’re waiting for their reply,” U Than Zaw, director general of the Oil and Gas Planning Department. The Zawtika M9 block is being worked as a 80/20 joint venture by Thailand’s PTT Exploration and Production Public Co Ltd and MOGE.
Kachin Ethnic Entrepreneurs Association will organize the first time economic forum in Myitkyina with the aim to develop Kachin’s economy with the help of local and foreign investments
Diversification has become necessary for establishing a sustainable economic environment in Kachin State, which is overly dependent on the mining industry, says U Tangbau Naw Kham, vice chair of Kachin Ethnic Entrepreneurs Association. U Tangbau Naw Kham said this after telling the Myanmar Times about an economic seminar that will be held at the Manaw Grounds in Myitkyina on November 15 and 16. The main focus of the event will be the development of a sustainable economic environment in Kachin. “Depending only on mineral resources, Kachin has fallen behind other regions and states in terms of development and to change that situation is one of the major objectives of Kachin entrepreneurs,” he said. “Kachin state is very much behind in development compared with other states and areas. Apart from the resource-based industries, we have only traditional subsistence businesses in Kachin. We have many potential economic sectors to explore like other states. It is high time to grasp those opportunities to shape sustainable economic development of Kachin state,” U Tangbau Naw Kham said.
State Counsellor attended the 35th ASEAN Summit and Related Summits in Thailand
State Counsellor Daw Aung San Suu Kyi who is currently in Bangkok, Thailand to attend the 35th ASEAN Summit and Related Summits, visited Thai Red Cross AIDS Research Centre at King Chulalongkorn Memorial Hospital in Bhumisiri Mangkhalanusorn Building, Saturday. The State Counsellor met with Her Royal Highness Princesses of Thailand at King Chulalongkorn Memorial Hospital. The State Counsellor and the Thai Royal Thai Princesses viewed functions of Red Cross AIDS Research Centre and HIV/AIDS treatment therapy. They also viewed around the booths displayed by the Thai Red Cross AIDS Research Centre and UNAIDS. The State Counsellor then attended ASEAN Business and Investment Summit (ABIS) at Maung Thong Thani Impact and delivered a speech. At the summit, the State Counsellor said that with this year’s theme – Empowering ASEAN 4.0, the submit focuses on micro-, small- and medium-sized enterprises, arguably one of the region’s most important sources of job creation, human empowerment and economic growth. She also highlighted on efforts to up-skill and re-skill the workforce in preparation for a forward-learning, future-ready, fully empowered ‘Myanmar 4.0’.
Myanmar moved up in the Ease of Doing Business ranking from 171 last year to 165 spot this year according to the initial report of the World Bank
Myanmar has moved up in the Ease of Doing Business ranking to the 165th spot from 171 last year after the initial report of the World Bank, according to U Thant Sin Lwin, the director-general of the Directorate of Investment and Company Administration (DICA), state media reported. The World Bank report pointed out that Myanmar showed substantial improvements in five areas of doing business—starting a business, dealing with construction permits, registering property, protecting minority investors, and enforcing contracts.
Myanmar Government drafted law for the development of animal husbandry and pisciculture to meet international standards
Myanmar is now drafting a lMyanmar is now drafting a law to improve the quality of animal husbandry and pisciculture in Myanmar in order to meet international standards. The law will cover various aspects of animal husbandry such as developing a plan for the deterrence of infectious diseases like swine flue, providing land for commercial livestock breeders, and creating pasturage. “We are now in the process of drafting the law for development of the livestock sector. We hope to submit it to the parliament soon,” said Dr. Ye Win Tun, Director General of the Department of Livestock Breeding and Veterinary under the Ministry of Agriculture, Livestock and Irrigation. Other matters will also be addressed in the law. Things like creating new cattle markets and slaughterhouses in line with the requirements for food safety and food security will be included in the new law. Furthermore, the country will establish a system enabling locally produced animal products to be exported to international markets in line with the Terrestrial Animal Health Code as set forth by the World Organisation for Animal Health’s (OIE).