Development of Korean industrial zone to commence this month in Myanmar

The first phase of construction of the Korea-Myanmar Industrial Complex (KMIC) in Hlegu township, Yangon, will commence on December 24.

Construction of the basic infrastructure such as roads and essential services needed for the project, which will be funded by the Korean Economic Development Cooperation Fund, is expected to complete by 2023. The total capital expenditure expected is in access of US$100 million, but create about 100,000 new jobs.

The KMIC will be jointly implemented by the Ministry of Construction and state-owned Korea Land and Housing Corporation on 558 acres of land in Nyaung-nhit-pin, Hlegu. The project will be managed by KMIC Development Company Ltd and will include Myanmar’s first online land reservation system.

The land rental rate is between US$69 and US$75 for one square meter and investors can start applying for their desired plots on January 21, 2021. When KMIC is complete, it will be worth US$4.7 billion and create more than 500,00 jobs. “It is important to build up industrial zones which can help investors do business in Myanmar. This will also improve local and foreign investments,” said Construction Manager U Han Zaw.

At the annual general meeting of the Union of Myanmar Federation Chambers of Commerce and Industry, it is said that KMIC will be implemented to be as successful as the Thilawa Special Economic Zone. Thilawa SEZ in Yangon Region has been successful and can be used as a good benchmark for other similar projects like the KMIC.

Source: Myanmar Times

US dollar slides after CBM sells $3 mln in local forex

The US dollar against Kyat weakened to K1,350 within a week in the local forex market, following the Central Bank of Myanmar selling 3 million dollars, local forex market data indicated. When the dollar value was substantial in the local forex market, the Central Bank of Myanmar (CBM) started to sell 3 million dollars from the state’s foreign exchange reserves at an auction rate on 14 December. A dollar exchange rate stood above K1,400 on 15 December 2020. The rate fell to K1,350 on 21 December, with a decrease of over K50 within a week.


“The dollar gain will benefit the exporters. Yet, it will hike up the local food prices. The currency intervention is required to steer the own currency value, U Than Lwin, senior consultant to Kanbawza Bank shared his opinion. “A too-strong or too-weak dollar is not good for the economy. It is one of the responsibilities of the CBM to control the price. That is why the CBM practised the foreign exchange intervention,” he elaborated.


This year, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October and K1,303 1,330 in November. Last year, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market. 

Source: The Global New Light of Myanmar

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China to implement two of three border trade zones

China will construct just two out of the tree trade zones slated for development at the Muse-Ruili (Kyegaung) designated areas. Under the initial Muse-Ruili (Kyegaung) project agreement, the two governments had agreed to designate the area as a Core Zone for trade between China and Myanmar while the Kyu Kote – Pang Sang – Wantain- Kyin San Kyawt zone would be designated as an Export Product Manufacturing Processing and Warehouse Area.

But, the Chinese government drafted plans only for two projects in Shweli (Kyegaung) and Wantain instructed Myanmar to pursue development work on the sites of these two projects, said U Khin Maung Lwin, assistant secretary for the Ministry of Commerce. He also said that they had designated three locations initially. The Chinese government had been expected to implement the trade zone from Kyu Kote to Pang Sang. They had discussions with them to develop these places. But according to the latest development, they made plans only for Kyegaung and Wantain. Currently, ground surveys are being completed to assess the land conditions in the designated areas.

When the land areas are designated in longitude and latitude for the Muse-Ruili Core Zone, the two governments will sign a China-Myanmar Framework Agreement. The Muse-Ruili Core Zone is envisioned to be a triangle-shaped area, stretching from Nam Phat Kar to northern Namkham and up to Kyukote (Pangsang) in the south. The trade zones are part of the China-Myanmar Border Economic Cooperation Zones. Up until recently, Myanmar had been expecting to develop core zones in three locations- Muse, Chin Shwe Haw and Kan Pite Tee.

Source: Myanmar Times