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MIC greenlights 15 new investment proposals including US$2.5 billion power generation project

Myanmar Investment Commission (MIC) held its 3/2021 meeting yesterday morning at the Office of the State Administration Council Office at office No 18 in Nay Pyi Taw. Member of the State Administration Council Chairman of the Myanmar Investment Commission Lieutenant-General  Moe Myint Tun and members of the Myanmar Investment Commission participated in the meeting.

The meeting approved fifteen new projects for electricity generation, livestock, manufacturing and other services sectors, and it also approved the increase in capital of two existing projects. The approved projects amounted to US$ 2,783.822 million and K153.67 billion to create 2,473 job opportunities for the local labours. In today’s meeting, the project to generate electricity from LNG with a large capital intensive investment amount of US$2.5 billion is included in the approved projects.

The electricity generated by the power plant will be sold cent per cent at home, and it is expected to support the goal of 100% nationwide electrification from the national grid by 2030. By the end of April 2021, the countries with the largest investment out of 51 countries/regions investing in Myanmar were Singapore, China, and Thailand. The electric power sector leads the list of most invested sectors out of 12 business sectors with 26.57% of total investment. It was followed by the oil and gas sector, accounting for 25.72% and the manufacturing industry, accounting for 14.61%.

Source: The Global New Light of Myanmar

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Fifty tonnes of coffee projected to export to France this month

Myanmar Coffee Association stated that over 50 tonnes of coffee produced in Hopong city, Shan State, under poppy substitute project are planned to ship to France this month. Myanmar’s coffee export has dropped by half last year on the weak demand triggered by the coronavirus. Typically, Myanmar exports about 500-600 tonnes of coffee to external markets. The volume plummeted to 300 tonnes last year, said an official of the Myanmar Coffee Association. The impacts of coronavirus hurt the coffee industry as the lockdown, and physical distancing caused a reduction in consumption.

Myanmar primarily produces Arabica coffee. Speciality coffee fetches as much as US$4,500-10,000 per tonne. Myanmar speciality coffee beans are highly demanded because of their high quality and organic production, said Chair U Myo Aye of the Myanmar Coffee Association. Myanmar’s coffee has already earned a good reputation. It has penetrated markets in Asia such as Hong Kong and Singapore, and European countries and the US. It has a good potential in the global market,” said an official from the Agriculture Department. Myanmar’s coffee has grabbed a market share in the US with the contribution of USAID and WinRock International NGO. Efforts are being made to penetrate markets in Japan, the Republic of Korea, and Canada.

At present, the export volume of coffee is extremely low, tracking the negative impacts of the coronavirus. In response to the COVID-19 in the coffee sector, innovative trade offer and a digital market are required to adapt to a new normal, coupled with client-oriented supply. Moreover, the coffee growers and producers need to increase quality to enter competitive markets. As a result of this, a government-backed loan is needed to help the stakeholders survive in the crisis. There are 40,000 acres of highland coffee plantations and about 10,000 acres under lowland coffee in Myanmar, totalling 50,000 acres. Shan State is the leading producer of coffee beans. Coffee beans are harvested between December and February. They are distributed and exported throughout the year after harvest time. Myanmar yearly exports around 400 tonnes of coffee. In 2019, it shipped about 500 tonnes of coffee to foreign markets.

Source: The Global New Light of Myanmar