Construction work resumes, under strict conditions

by CONSTRUCTION

Many construction projects in the Yangon Region have resumed after being given the all clear from the government, but have been reminded to follow the Ministry of Health and Sports’ guidelines. Construction companies which do not abide by the ministry’s instructions will be shut down, according to an announcement by the Yangon Region Construction Inspection Committee. Companies will also need to report to the committee to verify that the construction work is being carried out in line with the ministry’s order. This includes providing photos, showing that the work does not contravene the government’s 18 rules.

10 percent of the construction companies needed to resume work urgently, and they have been able to resume this month with the government’s permission. They will allow more companies to resume when the sites have been inspected. Over 300 businesses have applied for permission to resume work, and most are still waiting on a response from the Region Government. According to the nature of construction work, some projects cannot be halted for any length of time and it is important that they be allowed to resume.

Some businesses owners also suggested that constructions sites are relatively safe environments, where there are low rates of transmission as workers live onsite in isolated dorms. Yangon construction sites were forced to close on September 28 after the government announced the city-wide stay-at-home order, leaving companies and staff little time to secure equipment and protect sites from damage caused by wind and rain. According to an announcement on October 10, works that meet regulation guidelines can resume with the region’s permission starting October 12.

Source: Myanmar Times

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20 containers of seafood stranded at Saudi port

by LOGISTICS

Around 20 Myanmar containers with marine products are still stranded at Saudi Arabia’s Jeddah port while the Saudi Arbia Food& Drug Authority (SFDA) makes arrangements to approve a list of Myanmar fisheries factories from where the products were processes, according to U Ye Min, a Central Executive Committee member of the Myanmar Fisheries Federation.

The goods have been at the port since October 13, when Saudi Arbia seized around 30 unregistered containers loaded with US$80,000 worth of Myanmar fisheries products each. A total of ten containers have received cleared customs after the SFDA approved three of 19 factories which sought permission to sell their products in Saudi Arabia. There are still about 20 containers at Jeddah port which are not registered and approved by the SFDA yet.

This year, only Ywar Thar Gyi Cold Store, one of 19 cold storage factories from Myanmar which applied for registration, was approved by Saudi authorities. On October 15, the SFDA approved Twin Brothers Seafood Cold Storage, Mega Marine Frozen Seafood and Delta Queen International Co.

Source: Myanmar Times

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China demand drives sesame prices up in Oct

by TRADING

The prices of sesame seeds significantly rose in October on the back of China’s strong demand, said traders from Mandalay market. The price of white sesame increased from over K1.5 million to K1.66 million per tonne compared to September’s rate, while brown sesame price also jumped to K1.45 million per tonne in October, which is nearly up by K200,000 per tonne against last month. The price of black sesame seeds is flat at over K2.7 million per tonne for the two consecutive months. Last year, sesame seeds were priced at K2.13 million per tonne for white sesame, K1.94 million per tonne for brown sesame and K3.6 million per tonne for black sesame, as per market data updated by Myantrade online. This year, the sesame prices drop by over 20 per cent compared with the prices in the previous years due to the COVID-19 negative impacts.

Consequently, the growers do not make a large profit this year, a trader from Mandalay market stressed. Typically, Myanmar exports about 80 per cent of sesame production to foreign markets. China is the leading buyer of Myanmar sesame, which is also shipped to markets in Japan, South Korea, China (Taipei), UK, Germany, the Netherlands, Greece, and Poland among the EU countries. The EU markets prefer organic-farming sesame seeds from Myanmar, said an official from the Trade Promotion Department. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China buys various coloured sesame seeds from the country. This year, Japan has not purchased Myanmar’s sesame yet.

Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the primary producer of sesame seeds. The seeds are also grown in Mandalay and Sagaing regions. Of the cooking oil crops grown in Myanmar, the acreage under sesame is the highest, accounting for 51.3 per cent of the overall oil crop plantation. The volume of sesame exports was registered at over 96,000 tonnes, worth $130 million, in the financial year 2015-2016; $100,000 tonnes, worth $145 million, in the 2016-2017FY; 120,000 tonnes, worth $147 million, in the 2017-2018FY; 33,900 tonnes valued $43.8 million in the 2018 mini-budget period, and 125,800 tonnes, worth $212.5 million in the 2018-2019FY, the trade data of Central Statistical Organization indicated.

Source: The Global New Light of Myanmar

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Manufacturing sector attracts 188 foreign enterprises last FY

by MANUFACTURING

Majority of foreign enterprises eye the manufacturing sector for investments in the past financial year 2019- 2020, pulling in US$1.128 billion from 188 projects, the Directorate of Investment and Company Administration’s statistics indicated. Of 245 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and 30 September of the last FY, 188 enterprises pumped FDI into the manufacturing sector. However, the quantum of investment in power is higher than in any other sectors. Power sector topped $1.67 billion from eight enterprises.

The agricultural sector has attracted $17.73 million from three projects. The livestock and fisheries sector has drawn five foreign investment projects worth $138.48 million. Two projects worth $300.454 million have been approved in the transport and communications sector. The hotels and tourism sector has pulled in the investment of $53.342 million from five foreign enterprises. The real estate sector has also pulled 1.115 billion from eight foreign projects, while industrial estate sector received $273.49 million from two enterprises. Over $469 million of FDI has been pumped into the other services sector from 29 businesses. At present, the labor-intensive enterprises are facing financial hardship, disputes between the employers and employees and the closure of factories. However, those cases in the industry did not hinder new investments.

The manufacturing enterprises and businesses that need large labor force are prioritized. MIC is endeavoring to clear those kinds of projects so fast that they can start running in the post-COVID-19 period, the DICA official said. Moreover, MIC has shown readiness to accept the projects regarding the production of mask, pharmaceuticals and medical equipment, in responding to the activities of prevention, control and treatment of COVID-19. Myanmar attracted foreign direct investments of more than US$5.68 billion between 1 October and 30 September in FY2019-2020, including the expansion of capital by existing enterprises and acquisitions in the Special Economic Zones, according to the Directorate of Investment and Company Administration (DICA).

Source: The Global New Light of Myanmar

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24 projects with $ 3.5 billion in foreign investment have been proposed to MIC for the 2020-2021 fiscal year

by INVESTMENT

For the 2020-2021 fiscal year, 24 projects with $ 3.5 billion in foreign investment have been proposed to the Myanmar Investment Commission (MIC), according to the Directorate of Investment and Company Administration (DICA). For the next year, they have 24 proposals that the Investment Commission has to consider and then discuss the need. The value of the 24 proposals is estimated at US $ 3.5 billion. These businesses are huge because they are not available at this time.

There may be issues that may be of interest to the state next time, and there are sections that assess the needs of the state. Relevant ministries have to negotiate. After the relevant ministries, the decision must be made after submitting to the higher committees of the relevant ministries. For some countries, investment will be huge. It could also have an impact on the country. The land area is large. If the amount of investment is large, it should be submitted to the government It has to be decided. Due to such activities, this year’s target has not been achieved. The 24 investment proposals are over $ 3 billion. It is in this pipeline for the first month of the next fiscal year 2020-2021.

Due to COVID-19, some businesses were allowed to enter due to traffic restrictions, but were not allowed to do so, leading to a decline in Myanmar’s foreign investment target for the 2019-2020 fiscal year. In the 2019-2020 fiscal year, foreign investment in Burma was projected at $ 5.8 billion, but only $ 5.68 billion came in. However, in the context of COVID-19, investors have limited access; Some businesses are planning to enter but have not yet done so due to traffic congestion, as most of the government offices are located in Rangoon and Naypyidaw. According to Myanmar’s investment promotion plan, foreign investment is expected to reach $ 8.5 billion from the 2021-2022 fiscal year, but these targets will be reconsidered due to the COVID-19 outbreak.

Source: Daily Eleven

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Hong Kong investors eye new opportunities in Myanmar

by INVESTMENT

HONG KONG business and those already present in Myanmar expressed a keen interest in Myanmar’s significant investment potential including areas as diverse as energy, transport, banking and finance, retail and services during a recent webinar organized by the Myanmar-Hong Kong Chamber of Commerce and Industry. As a guest of honour delivering a keynote address, U Thaung Tun, Union Minister for Investment and Foreign Economic Relations, highlighted Myanmar’s enviable geographic position as: “…a strategic land bridge, connecting two of the world’s largest regional economies, those of South and South East Asia, we also wish to play a greater connecting role – connecting East and West – from the Mid-East to the Mekong!” The Union Minister also referred to ongoing challenges posed by COVID-19 noting that: “…today the IMF forecasts Myanmar’s growth at closer to 2 per cent – still placing us amongst a small handful of nations who will post positive growth this year. Thankfully, most forecasts suggest our rapid return to pre-crisis growth of 6 per cent plus in 2021.”

The Union Minister together with panellists, including Memories Group CEO Mr Cyrus Pun, Cycle & Carriage Hong Kong investors eye new opportunities in Myanmar Myanmar General Manager Mr Adrian Short, and Mr Edgar C P Kwan, Marga Group Chief Development Officer were in firm agreement that such growth could be achieved via increased and diversified investment in maritime infrastructure, roads, rail, urban housing, border cooperation zones, agriculture, technology, cyber and clean energy projects amongst many others. Despite current sluggish global growth and general uncertainty, Mr Edgar C P Kwan expressed optimism that the coming year will bring forth further opportunities for Myanmar, highlighting in particular, investment opportunities in Myanmar’s energy, real estate and manufacturing services sector, while noting that the continued expansion of a world-class services industry will also help to further facilitate Myanmar’s broad-based and inclusive development, Memories Group CEO Mr Cyrus Pun enquired as to what steps had been taken to cut through red tape and to lower administrative hurdles faced by investors, to which the Minister replied noting the launch of the Myanmar Companies Online (MyCo) company registration platform, the recent launch of an online tax payment system in Yangon, as well as the continued development of Standard Operating Procedures across all administrative units within the Ministry of Investment and Foreign Economic Relations as clear signs of progress being made.

With examples on offer such as the recent successful West Yangon Industrial Park competitive tender launch, the successful conclusion of international tendering for 30 solar power projects, and the recent approval of a new Thilawa LNG-to-Power project – amongst Myanmar’s largest and equal to one-fifth of the country’s current power generation capacity – the Minister noted how continued investment in Myanmar’s energy sector will unlock further flown investment in other sectors, generating new jobs for a young population while ensuring the government keeps its commitment to electrifying the nation by 2030. The Union Minister also drew attention to the upcoming launch of the Myanmar Economic Recovery and Reform Plan (MERRP), clarifying its role as an interim reform-oriented measure, a natural successor to the shorter-term COVID-19 Economic Reform Plan (CERP), that will be used to ensure remains on track toward achieving the MSDP once the COVID-19 pandemic subsides. Noting the reputation Hong Kong investment has garnered as responsible and of high quality, the Minister emphasized that Myanmar welcomes responsible, quality investment from wherever it may come and remains committed to providing a level playing field for all responsible investors seeking to do business, or to explore greener pastures in Myanmar.

Source: The Global New Light of Myanmar

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Southeast Asia sees big shift to e-commerce during COVID-19

by COVID

Driven by changing consumer trends during COVID-19, the Southeast Asian e-commerce industry has grown substantially in the first six months of the year, according to a recent report by price comparison and product aggregating website iPrice Group. The report pointed out major changes in consumers’ behaviors and the e-commerce industry brought about by COVID-19 in Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines, mainly a strong shift from offline to online in consumer spending. In the first half of 2020, website traffic of online general department stores increased in Indonesia, Thailand, Malaysia, and Singapore by up to 18 percent compared to the second half of 2019.

E-commerce providers across the region were quick to adapt to the new trends. For example, almost all major e-commerce marketplace in the region had multiple sales campaigns to promote health supplements and groceries. Some invested in logistics to assure these essentials get to the consumers. In April, Lazada expanded their fresh produce category to Malaysia, Vitenam, and Indonesia. In May, Vietnamese company Tiki introduced TikiNGON – a service to deliver groceries in three hours. In the second quarter of the year, the total number of sessions on shopping applications in Southeast Asia reached 65.1 billion, which is an increase of 39pc compared to Q1. Leading this jump in usage is the Philippines, Thailand and Vietnam with increases of 53pc, 50pc, and 43pc respectively. Meanwhile, Indonesia leads the region in absolute number with 28.5 billion sessions in 2Q alone.

Service available already on Telenor Zay include groceries and food delivery, health care service such as online medical appointments and telemedical consultations as well as the purchase of vehicle insurance services. A recent report by Telenor showed that COVID-19 has led to a surge in online shopping. Services that deliver food, groceries, medical supplies and packages are thriving in Myanmar. This has also led to rising adoption of digital payment methods, with data analytics company Statistic projecting a 7.1 pc increase in digital transitions and a 19.7pc rise in the number of users in Myanmar this year. Online shopping will see significant growth in Myanmar going forward, especially as the digital ecosystem and the digital readiness of both customers and businesses continue to evolve.

Source: Myanmar Times

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YGN region tops $308.768 mln from 137 foreign firms last FY

by INVESTMENT

Yangon Region Investment Committee endorsed 137 enterprises in the past financial year 2019-2020, bringing in estimated capital of US$308.768 million, according to the Directorate of Investment and Company Administration (DICA). Between 1 October and 30 September of the FY2019-2020, Yangon Region stood at the first place with 137 foreign enterprises (with a capital of $308.768 million), followed by Bago Region with 18 foreign projects ($72.645 million) at the second place and Ayeyawady, with nine at the third place ($19.614 million). Additionally, foreign direct investments also flow into Taninthayi Region from two projects worth $1.397 million, Magway Region from two worth $0.991 million, Mon State from two worth $1.664 million, Mandalay Region from one business valued $4.6 million, Sagaing Region from one worth $3 million, Kachin State from one worth $1 million, Shan State from one worth $4.13 million and Nay Pyi Taw Council from one valued $5.862 million.

In the last FY, the respective investment committees of Kayah, Kayin, Rakhine and Chin states did not endorse foreign enterprise at all, the DICA stated. The region and state investment committees endorsed a total of 175 foreign enterprises with an estimated capital of $423.671 million last financial year.  The endorsed enterprises are to be engaged in the manufacturing, hotels and tourism, other services, power and agricultural sector. Of them, the majority of the investment goes into the manufacturing sector, followed by other service sector and hotels and tourism sector.

The manufacturing sector has also attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis. To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, the British Virgin Islands and Seychelles are arriving in the region. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to grant permissions for local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million.

Source: The Global New Light of Myanmar

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YSX Live Talk Program (Free Webinar)

by EVENT

Date: 27 October 2020, 3:00 PM

With an aim to share YSX market updates of 2020 to stock investors; such as newly established market board (Pre-Listing Board), online securities account opening, foreign investor’s participation in the market and Listed companies’ activities along with COVID-19 new normal sentiment, etc., and to highlight stock investment opportunities based on local and global market trend during COVID-19 pandemic 

Speaker:

  • U Thet Htun Oo, Executive Senior Manager , Yangon Stock Exchange (YSX)
  • U Aung Thein Tun, Managing Director, Institute of Business & Investment Management (IBIM)

Stock investors and anyone who are interested in stock market can watch it live streaming on (https://fb.me/ysx.myanmar).

Five Shan towns to be promoted as tourism cities

by HOTEL & TOURISM

Five towns in Shan State have been designed as tourism cities with the aim of improving Myanmar tourism in the post-COVID-19, said U Soe Nyunt Lwin, Shan State Planning and Finance minister. A tourism master plan has taken into account the “new normal” in Shan. Under the plan, the country will promote tourism under government-to-government agreement. The five tourism cities include Kalaw, Nyaung Shwe, Kyaing Tong, Lashio and Thibaw.

The plan will encourage local and foreign travelers to learn about ethnic people’s cultures through literature, music, the arts, food and handicrafts. A K100 million budget and five percent of the Inle Lake Fund will be used annually to promote Shan hotels and tourism. More money will have to be spent for tourism in the post-COVID-19 period for the sake of regional development. As part of the effort, they have asked the Ministry of Defense to allow foreign travelers to use the road that connects eastern and southern Shan. A package tour of Kalaw and Nyaung Shwe towns via Kyaing Tong is also planned.

Travelers from Thailand can visit Kalaw and Inle in eastern Shan. Kyaing Tong will be promoted for its scenic beauty and as a jumping-off point for eco-tours of the surrounding countryside. The China and Thailand markets will be targeted during the remainder of the government’s term after the elections. In Nawngcho township, the first glass bridge in Myanmar will be built soon. Kalaw and Taunggyi cities have received tourism awards, and Taunggyi, capital of Shan, was also recognized for having the highest oxygen concentration in ASEAN.

Source: Myanmar Times