ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Foreign Direct Investment (FDI) in Myanmar reached 77 percent to USD $ 2.3 billion in the first half of 2019 when compared to the same period of last year

  Government-approved foreign direct investment (FDI) into the country stood at US$2.3 billion in the first-half of 2019, a 77 percent improvement from the same period last year when approved FDI came in at US$1.3 billion. According to statistics from the Directorate of Investment and Company Administration, Singapore was the top investor with US$1.3 billion and 13 approved projects, China came second with US$330 million and over 60 approved projects. By industry, transport and communications received the most investments of US$1 billion, manufacturing saw US$800 million investments while services received US$160 million. Another US$130 million of approved investments went to the hotel and tourism as well as livestock and fisheries industries.
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  Ministry of Planning and Finance announced the six successful applicants for life and non-life insurers to operate under joint venture among local and foreign insurers

  The Ministry of Finance and Planning (MOFP) announced the successful applicants for life and non-life insurers to be operated under joint ventures between locals and foreigners on July 31. For non-life insurance, the MOFP has allowed AYA Myanmar General Insurance Company and Sompo Japan Nipponkoa Insurance, Grand Guardian General Insurance Company and Tokio Marine, Nichido Fire Insurance and IKBZ Insurance Company as well as Mitsui Sumitomo Insurance Company to form joint ventures. For life insurance, joint ventures have been allowed between Capital Life Insurance and Taiyo Life Insurance Company, Citizen Business Insurance and Thai Life Insurance, and Grand Guardian Life Insurance Company and Nippon Life Insurance.
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  Myanmar Investment Commission (MIC) approved nine investment proposals in the livestock and fisheries, manufacturing, hotel and real estate sectors which will create over 3,000 job opportunities

  The Myanmar Investment Commission (MIC) meeting (12 / 2019) was convened at the meeting room of the MIC on the morning of 30rd July 2019 in Yangon. U Thaung Tun, Chairman of the MIC, Dr. Than Myint, Vice Chairman and (8) members attended the meeting. The meeting approved nine projects in the livestock and fisheries, manufacturing, hotel and realestate sectors. The amount of USD 101.172 million and Kyat 110,703.800 million have been approved for those projects, which will create 3,029 job opportunities for Myanmar citizens.
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  More foreign investments entered in production and industrial sectors and halted in real estate and housing sectors

  More foreign investments are entered in production and industrial sectors and halted in real estate and housing sectors, said Thant Sin Lwin, Director General of Directorate of Investment and Company Administration (DICA). In last five years, most foreign investments entered into hydropower production and natural gas sectors. At the present, the increase of foreign investment in production and industrial sectors is not noticeable significantly as only small amount of foreign investments entered in those sectors. “In 2014 and 2015, the foreign investments went double as the investments were made in hydropower production and natural gas sectors. The numbers of CMP manufacturing businesses are increased but their investments are about US$5 or 6 million each. It is not much but the numbers of business are increased,” he said.
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  China leads the largest investor in Myanmar’s financial hub in the first nine months of the current fiscal year

  China was the largest investor in Myanmar’s financial hub, Yangon Region, in the first nine months of the current fiscal year, according to the Directorate of Investment and Company Administration (DICA). China is already the second-largest investor in the country. The director of DICA’s Yangon Region Office, U Myo Khaing Oo, said on Wednesday that as of July 24, Yangon Region had given the green light to a total of 113 foreign investment projects in the current 2018-19 fiscal year, which ends on Sept. 30. Of those, 65 are by Chinese companies. “Chinese account for the biggest share,” said U Myo Khaing Oo, who is also secretary of the Yangon Region Investment Committee (YRIC). However, he did not reveal which sector received the most investment from China. In addition to the Chinese projects, the regional government approved 17 projects from Hong Kong; six each from India and Taiwan; four from Japan; three each from Singapore and the British Virgin Islands; and nine from other countries. The foreign projects were worth a total of US$201.022 million (303.83 billion kyats), according to the YRIC.
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  Mandalay Rice Development Company (MRDC) and Kunming Green Color Trade Co., Ltd signed the first overland barter trade agreement on 25 July 2019

  An agreement for overland barter trade has been signed between Mandalay Rice Development Company (MRDC) and Kunming Green Color Trade CoLtd from China’s Yunnan province in which the former will trade 100,000 tonnes of rice to the latter for an equivalent in other trade goods starting next month. The undertaking, which was signed on July 25, would be the first such agreement between private companies following the signing of a memorandum of understanding between the Myanmar and Chinese governments on the overland barter trade earlier this year. MRDC managing director U Sai Kyaw said both companies would be the intermediaries for goods to be traded under the barter system. “Chemical fertilisers, construction material, electric appliances andagricultural machinery manufactured from Yunnan province can be imported with a 5 percent discount on the market price,” he said, adding that both sides were now awaiting the greenlight from their respective governments to start trading.
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  Ministers from the Union Government called for the sustainable and quality investments for the Tanintharyi Region’s tourism industry

  Union Minister for Investment and Foreign Economic Relations U Thaung Tun, Union Minister for Hotel and Tourism U Ohn Maung and party arrived at Kawtthaung, Taninthayi Region in the morning on 26 July to carry out the measures on the tourism and investment. The Union ministers and chief minister and ministers of Taninthayi Region and officials inspected the area to be constructed Marina Bay in ThaHtayKyun by motor boats. In the afternoon, the meeting (2/2019) of Taninthayi Region Tourism work committee was held at the meeting room of ThaHtayKyun Hotel. At the meeting, Union Minister U Ohn Maung highlighted the arrangements of travels and tours in Myeik myeik archipelago and the developments of tourism industry in the region, urged to implement sustainable tourism, conserve the natural environment and marine resources, suggested to construct the buildings in Ecolodge style to maintain the natural environment and instructed to spend incomes from tourism industry for the development of tourism sector.
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  Foreign oil and gas companies can participate in the retail business in Myanmar in accordance with rules and regulations of Myanmar’s Government

  Foreign oil and gas companies with retail operations can apply to set up their businesses in Myanmar, a senior official with the Ministry of Electricity and Energy (MOEE) told The Myanmar Times. While Myanmar remains the only member of Asean that does not allow 100 percent ownership in retail petroleum operations, it has allowed foreign oil and gas companies to cooperate with local retail petroleum operators to set up shop in the country since 2017. The government allowed private sector participation in retail petroleum operations from 2010. The senior official said foreign oil and gas companies can participate in the importation, storage, distribution and sale of fuels as long as they were in accordance with the rules and regulations.
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  The very first Myanmar Arbitration Centre (MAC) will be opened in Yangon for the resolving commercial disputes among Myanmar entrepreneurs

  The Myanmar Arbitration Centre (MAC) will be opened on 3 August at the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry to resolve commercial disputes among Myanmar entrepreneurs, according to the UMFCCI. The Commercial Disputes Coordination and Mediation Work Committee of the UMFCCI has been trying to set up an arbitration centre since 2017. The MAC has been registered as a company with the Directorate of Investment and Company Administration, and the permission to form the centre was granted on 11 March, 2019. “Our company is not a normal one like other companies. Ordinary companies need capital investment. When we established the MAC, we didn’t have to put up any capital investment. We only have to implement the MAC with the company’s guarantee,” said Dr Maung Maung Thein, a consultant with the UMFCCI, at a media conference held on 31 July at the MAC at UMFCCI, Yangon.
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  Japanese companies are planning to build a new project of 1000 megawatts (MW) power plant in Myanmar

  According to U Zaw Min Win, Chairman of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), Japanese companies are planning to build a new power project in Myanmar that will be capable of producing 1,000 megawatts (MW) of electricity per year. “Investment in electricity production is really overdue,” he said at a regular meeting between local business leaders and the Vice President of Myanmar. “There are some companies, including U.S. companies, that met us and said that they wanted to invest in Myanmar’s electricity sector. We heard that Japan has plans to build this 1,000-megawatt plant in Myanmar.” Investments like these can improve Myanmar’s power sector which, in turn, will encourage people to make further investments and boost productivity in the manufacturing sector, he added. Moreover, the UMFCCI is working with the government to facilitate the investments. U Soe Win, the Union Minister of the Ministry of Planning and Finance, said: “We are planning to use more of our budget for infrastructure and electricity, both of which are necessary elements that investors consider when making a decision on investment.”