ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Italian oil and gas company, Eni Spa begun it exploratory drilling at onshore block RSF-5 in Magwe Region

  Italian oil and gas company Eni Spa has begun exploratory drilling at the Shwe Nan Htike Well 1, located in the onshore block RSF-5, in Magwe Region, the Ministry of Electricity and Energy (MOEE) announced. The ceremony to begin drilling at the well, located near Aung Myay Kone village, in Magwe, was attended by Deputy Minister of Electricity and Energy U Tun Naing on Monday. The MOEE is partnering with international companies to explore onshore and offshore blocks to boost oil and gas production in the country. Myanma Oil and Gas Enterprise and Eni Myanmar BV started 3D seismic studies in the block in 2017 and completed the preliminary work in 2018. Based on result of the measurement, a well measuring some 3,800 metres deep will be drilled at the site to test sand layers where oil and natural gas could be found said the MOEE.
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  The construction of joint venture power generation project between Zhefu Holding Group of China and local firm Supreme Trading Co, will be commence soon

  Construction of a power generation project in Mee Laung Gyaing, Ayeyarwady Region will take place after a power purchase agreement is signed within the first three months of the year. Zhefu Holding Group of China and local firm Supreme Trading Co will invest US$2.57 billion to build the plant. It will be powered by liquefied natural gas (LNG) and produce up to 1390 megawatts of energy when it is complete. The project will include berths for gas carriers to dock at the Mee Laung Gyaing area, which is 40 miles to the north of Chaung Tha beach. It will be transferred back to the government under a 30-year build, operate and transfer system. Negotiations are concluding and the PPA is expected to be signed during the first quarter of 2020, said U Htoo Htoo Aung, deputy CEO of Supreme Trading Co.
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  Ministry of Planning, Finance and Industry relaxed SME lending rules to allow small and medium enterprises with only one year’s track record to apply for loans

  The Ministry of Planning, Finance and Industry has relaxed SME lending rules to allow small and medium enterprises with only one year’s track record to apply for loans. Prior to this, only SMEs with two or more years of track record were eligible to apply for loans. “We are planning to provide loans to one-year-old SMEs. Not to every one of them, but those with great potential for success,” said Daw Aye Aye Win, director general of the Department of Small and Medium Enterprise Development. When applying for SME loans, small businesses usually have difficulty providing tax receipts as they typically make under K10 million in annual profits and are thus exempt from paying income tax.
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  The work on USD $ 230 million industrial park project in Hlegu expected to start in March 2020

  Work on the US$230 million (K338.7 billion) Singapore-Myanmar Hlegu Industrial Park project is set to begin in March 2020, one of the investors in the project has announced. The agreement for the project, set to cover some 598 hectares in Hlegu township, Yangon, was signed between Sembcrop CSSD Myanmar Co, the local arm of Singaporean conglomerate Sembcorp, and local partners City Mart Holding Co Ltd (CMHL), and Myanmar Agribusiness Public Corp (MAPCO) in July this year. The project is now awaiting formal approval from the Myanmar Investment Commission, said U Han Thaw Zay, executive director of MAPCO. “We are waiting for the permit from MIC and we hope to receive it in January so that we can break ground for the project in March,” U Han Thaw Zay said.
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  Myanmar Government will provide electricity to Myawaddy by end of this month

  Starting from the end of this month, the government of Myanmar will provide electricity to Myawaddy Township, which has been purchasing power from Thailand. The border township purchases power from the 22 KV Thai power grid and distributes electricity to residents using 45 public transformers and 76 private transformers. “The national power grid reached Myawaddy in March 2019. We will replace the existing public transformers and an additional 20 transformers with 11 KV transformers,” said U Khin Maung Win, Deputy Minister of Electricity and Energy.
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  Myanmar falls short of Foreign Director Investment (FDI) target this year though outlook is positive

  Despite government efforts to hit its foreign direct investment (FDI) estimate of $5.8 billion during fiscal 2018-19, investors channeled just $4.1 billion into Myanmar, 70 percent of the original target, between October 1, 2018 and September 30, 2019. But U Thant Sin Lwin, director general of the Directorate of Investment and Company Administration (DICA) and secretary of the Myanmar Investment Commission (MIC), said FDI has been picking up and should align with the government’s estimates for fiscal 2019-20. In 2018-19, the government improved its investment policies with economic sustainability in mind. Now, investments that potentially cause losses or damage to the environment, society and natural resources are turned down. “Last year, there were changes within the ranks of the MIC and its policies. The goal is to only invite responsible investments. Because of the stricter screening process, FDI volumes decreased,” said U Thant Sin Lwin. He added that time was also spent harmonising the various laws and restrictions in Myanmar.
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  Myanmar Thilawa SEZ Holdings (MTSH) earned Ks. 8.36 billion in profits last year

  Myanmar Thilawa SEZ Holdings (MTSH) earned net profits of Ks-8.36 billion including commission sales, Ks-286.5 million from Thilawa Property Development (TPD) and US$12.2 million from Myanmar-Japan Thilawa Development Company (MJTD) in 2019. Twenty percent of TPD is owned by Thilawa SEZ Management Committee (TSMC) and 80 percent by MTSH. TPD Company was established running businesses such as the construction of housing and economic infrastructures in Thilawa SEZ and selling and renting those properties. Despite slow progress in the real estate sector in 2019, TPD earned a net profit of Ks-286.5 million.
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  The LNG plant and terminal will be constructed at Thilawa Special Economic Zone

  A consortium of Myanmar and Japanese companies will construct an electricity generation plant and liquefied natural gas (LNG) terminal at the Thilawa Special Economic Zone, said U Han Thaw Zay, Executive Director of Myanmar Agribusiness Public Corporation (MAPCO), one of the firms involved in the investment. The LNG-fuelled plant will have the capacity to generate 1250 megawatts of electricity, while the LNG terminal is expected to facilitate the production of electricity on floating units. The terminal will be built on space previously earmarked for warehouses and the trading of crops. The LNG used will be purchased and imported from Singapore, Malaysia and Indonesia.
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  Ministry of Commerce (MOC) amended its procedures for exporter/importer registration numbers to be in line with the company registration procedures

  The Ministry of Commerce (MOC) has warned that it will remove companies that do not apply for new exporter/importer registration numbers by December 31, from the registry list and not allow them to carry out trading. According to the provision included in the Myanmar Companies Law 2017, the Directorate of Investment and Company Administration (DICA) requires companies to re-register with sthe Myanmar Companies Online (MyCo) registry system. The Ministry of Commerce also amended its procedures for exporter/importer registration numbers to be in line with the company registration procedures. If companies that have already re-registered with the MyCo registry system want to keep carrying out an export/import business, they need to apply for a new nine-digitTaxation Identification Number to replace their existing number in exporter/importer registry by the end of this year.
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  Rakhine State Government called for more proposals on industrial zone project in Ponna Kyun

  The Rakhine State Government has called for more proposals for an industrial zone project in Ponna Kyun. It started selling K10,000 proposal forms on December 18 and the deadline for submission is January 17. The state government has received one proposal, from a local company, Pyaywachanthar, for a 1,800-acre industrial zone, whereas the state has allocated 1,963.74 acres on the east side of the Yangon-Sittwe road for the project. Dr. Tun Min Thein, director general of the Rakhine State Investment Committee, said local and foreign companies are invited to submit proposals for the project, which includes infrastructure such as roads, a water distribution system and real estate. The industrial zone will be home to small and medium-sized factories for textiles and garment, meats and fishery products and finished wood products. The state government said it is committed to provide tax incentives and land at reasonable prices to companies and institutions that invest in the industrial zone.