71 projects worth $7.9B added to Myanmar Project Bank

by INVESTMENT

A total of 71 new projects have been added to the Myanmar Project Bank since the start of the year, taking the list of projects to 129. The new projects include the US$900 million Yangon Elevated Expressway, $847 million No.1 Steel Mill in Myanmar in Myingyan, $660 million Sagaing international textile-based industrial cluster and the $524 million Bago-Kyaikhto highway.

The 71 projects have a combined value of $7.9 billion. The other projects include power infrastructure, solar and wind projects, roads and bridges, and recommissioning of state-owned factories. The Myanmar Project Bank was launched on February 26 with 58 projects. The loftiest project is the Yangon Central Station, which involves an investment of more than $2.1 billion. The project bank is an interactive web-based platform designed to highlight investment projects in line with the implementation of the Myanmar Sustainable Development Plan (MSDP) for 2018-2030.

The project bank represents “an online one-stop-shop, where all information on projects designed to implement the MSDP can be easily accessed with a single click”. It also establishes a reliable and transparent system which links major investment projects with appropriate sources if finance including Public-Private-Partnerships and provides more opportunities for the private sector to contribute to national development. All the projects are strategic in nature and align with MSDP.

Source: Myanmar Times

Myanmar govt’s plan to promote local tourism clashes with COVID-19 preventative measures

by HOTEL & TOURISM

The government has launched a plan to boost local tourism as international tourists remain locked out of the country due to commercial flight restrictions, this has clashed with its efforts to control COVID-19. On July 30, several famous pagodas in Bagan banned travelers from visiting 17 famous pagodas due to “health concerns.”This was despite local having already booked their transport and accommodation. Meanwhile, famous beaches in Ayeryawady like Ngwe Saung and Chaung Tha remained off-limits to visitors during that weekend, with travelers being advised that COVID-19 inspections were yet to be complete in the area.

The decision to reopen famous tourist destinations as part of the government’s tourism recovery plan will be made by the Central COVID-19 Committee. While precautions are necessary in managing the pandemic domestically, tourism businesses say they are unable to resume operations even though the government has pledged support for the sector. The majority of local agencies have suspended their operations while just a few are providing booking services for air ticket and hotel rooms. Many tour operators expect the Myanmar tourism industry to bounce back only next year.

The majority of locals are expected to travel mainly for religious reasons and during long weekends for relaxation purposes, local travel and tourism firms. Meanwhile, the Ministry of Hotel and Tourism will start conducting a survey on domestic travelers in an effort to support and improve the sector. The online survey includes 18 questionnaires related to the spending power, duration of travel and lodging preferences of local travelers.

Source: Myanmar Times

Domestic gold price hits new record high amidst global price hike

by ECONOMY

With the record high global gold price, the domestic gold price also hit a new record on 7 August with K1,332,500 per tical, according to the domestic gold market. Although the domestic gold price was a record high at K1,307,000 per tical (0.578 ounces, or 0.016 kilograms) on 5 September 2019, the gold price is a new record high again. While the domestic gold price was highly recorded at K1,300,000 per tical on 5 September 2019, the price of the global gold price has only risen to $1,550 per tical. With the rising of the global gold price, the global gold market saw the gold being sold for $20,000 per ounce on 5 August and the price continued to hike and hit a new record high at $2,062 per ounce on 7 August.

With the rising of the global gold price, the domestic one also hit the new record. The dollar versus the kyat exchange rate was K1,373 per dollar on 7 August. At present, there is a high demand for gold in the local market, according to a domestic gold trader.
With the slightly rising of domestic gold price together with the global gold price starting from 2019, the local gold price reached K1,000,000 per tical between 17 January and 21 February, K1,100,000 between 22 June and 5 August, K1,200,000 between 7 August and 4 September and, then reached an all-time high of K1,300,000 on 5 September 2019.

In April, the coronavirus risks caused the shutdown of the gold market, and the market reopened on 18 May with a minimum rate of K1,214,100 (27 May) and a maximum rate of K1,236,000 (18 May). The price was moving in the range of K1,209,600 on 6 June and K1,219,500 on 1 June. The local gold reached the lowest level of K1,216,500 (1 July) and the highest level of K1,296,500 (27 July), according to the gold traders.

Source : The Global New Light of Myanmar

Commerce ministry in Myanmar says corn exports “very promising”

by TRADING

While overseas demand for some Myanmar commodities has fallen short of forecasts this year due to COVID-19, exports of several locally produced crops have nevertheless risen and some even look promising.Myanmar corn is usually exported to China but demand from Thailand has raisen since the start of the 2019-20 fiscal year. According to the Minstry of Commerce, more than 60 percent of this year’s corn exports went to Thailand via the Tachileik and Myawaddy border towns.

The other Myanmar crop for which overseas demand has been promising is the avocado. According to the Myanmar Avocado Producer and Exporter Association, interest from Singapore and China on Hass avocados grown and harvested in Myanmar has been increasing. Hass avocados are the most commonly grown avocado variety in the world. Its fruit has high oil content and a nutty, rich taste. Its flesh is smooth textured and it has a thick skin casing.

In fact, Myanmar only started harvesting Hass avocados two years ago. as volumes are still low and due to disruptions caused by COVID-19, exports have yet to commerce. But demand is already growing. This year’s avocado cultivation has been successful and China has recently offered to import 500 tonnes per year. Singapore also wants 15 tonnes per week. There is a potential to break into the international market due to high interest from China, Singapore,Taiwan and Hong Kong.

Source: Myanmar Times

Rice export through sea trade up by $180 mln this FY

by TRADING

Myanmar rice export through sea trade generated an estimated income of US$581.6 million as of 17 July in the current financial year and the figures reflect an increase of $181.4 million compared with a year-ago period, as per data from Myanmar Rice Federation (MRF). Myanmar maritime trade constituted over 85 per cent of rice exports. Earlier, border trade was relatively high compared to sea trade in terms of rice exports. Since the previous financial year, border trade has dropped, and currently, it accounts for just 14.8 per cent of the total rice exports.

Rice exports through the borders have generated an estimated $96.68 million in the current financial year, which plunged from $173.3 million registered in the corresponding period of last year. Myanmar primarily exports rice to China through the borders. However, trading in agricultural products has been halted on account of China clamping down on illegal trade and China’s precautionary measures to contain the spread of coronavirus. It is difficult to ship rice in the rainy season. In July, rice prices significantly plunged as against June, said traders from Bayintnaung market. The volume of rice and broken rice exported between 1 October and 17 July in the 2019-2020FY has been estimated at over 2.25 million metric tons, worth over $678.29 million, according to an announcement from the MRF. In the current budget year, Myanmar has shipped rice to 66 foreign markets. China is the main buyer of Myanmar rice, followed by Malaysia and Madagascar. The Philippines is the fourth-largest buyer and Cote D’Ivoire the fifth-largest buyer of Myanmar rice.

In 2019-2020FY, Myanmar has exported broken rice mostly to Belgium, followed by Senegal, China, Indonesia and the Netherlands. Broken rice has been placed in 57 foreign markets. ASEAN countries constitute 17 per cent of Myanmar total rice exports. The European Union countries account for over 20.45 per cent of rice exports, while 30.2 per cent of total rice exports in Myanmar goes to African countries. According to the work coordination meeting held on 26 June, 150,000 tonnes of rice will be exported each in July and August. And, 100,000 tonnes of rice will be sent to the external market in September, totalling rice export quota of 400,000 tonnes. The Ministry of Commerce, Myanmar Inspection and Testing Service (MITS), the authorized organization of the State and MRF implemented rice reserve scheme on 30 April. The state has purchased an adequate amount of rice (50,000 tonnes). Myanmar shipped 3.6 million tonnes of rice in the 2017-2018FY, which was an all-time record in rice exports. The export volume plunged to 2.29 million tonnes, worth $691 million, in the 2018-2019FY.

Source: The Global New Light of Myanmar

Myanmar, Japan to develop new large-scale shopping mall in Yangon

by INVESTMENT

Local real estate developer Shwe Taung Real Estate Co; Ltd and Japan’s Aeon Mall Co; Ltd have formed a joint venture to invest, develop, manage and operate large-scale shopping malls in Myanmar, both companies announced on August 4. The JV received approval from the Myanmar Investment Commission last week. Shwe Taung holds a 30 percent stake in the joint venture, Aeon Mall Myanmar Co; Ltd, while Aeon Mall will hold the remaining 70pc.

The agreement between the largest shopping mall operators in both Myanmar and Japan is expected to raise the shopping standards and lifestyle experience in Myanmar to a higher level. Aeon has a portfolio of 172 Aeon Mall-branded malls in Japan and worldwide. It is expected to bring fresh retail concepts like entertainment, pet care and modern lifestyle products and services to Myanmar for the first time. The ministry also permitted joint ventures of retail and wholesale businesses between foreigners and citizens.

The government first opened up the wholesale and retail industry to foreign investors in May 2018, permitting fully foreign-owned companies as well as joint ventures between international and domestic investors to carry out retail and wholesale businesses in Myanmar. Since then, foreign retailers and wholesales of consumer goods, foodstuff, household products, pharmaceutical products, machinery, construction material, agricultural products and electronics have entered the market. These include MyCare Unicharm from Thailand, DKSH from Thailand, Unilever from Netherlands and Nestle from Switzerland.

Source: Myanmar Times

Coronavirus impacts hurt Sino-Myanmar border trade in current FY

by TRADING

Sino-Myanmar border trade has registered a decrease of US$123.5 million between 1 October and 17 July in the current financial year 2019-2020.Data from the ministry show the value of Sino-Myanmar border trade in all five border areas touched over $4.7 billion in the current budget year, which significantly plunged from over $4.83 billion recorded in the year-ago period.Border trade values totalled $3.89 billion through Muse border in this FY, $123.35 million via Lweje, $430.7 million via Chinshwehaw, $263 million via Kampaiti, and over $4.45 million via Kengtung.

The Commerce Ministry’s data showed a drop in trade value through all those border areas.The decline in trade is attributed to the trade suspension and trade delay amid the tight security measures of coronavirus. China has been stepping up border control measures to contain the spread of the coronavirus infection. The transport delays caused damage to the quality of the goods and doubled the truck fares. Next, the export of agricultural products is often halted, on account of China clamping down on illegal goods. Myanmar merchants are facing difficulties in exporting goods to China through the legitimate channel as they find the tax levied by China is too high.

In a bid to lower trade barriers and offer relief to Myanmar traders through the border trade channel, the Ministry of Commerce, the related departments and Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts. The two countries are making efforts to set up more border economic cooperation zones and promote border trade. Myanmar exports rice, sugar, pulses, sesame seeds, corn, dried tea leaves, fishery products, minerals, and animal products to China while it imports agricultural machinery, electrical appliances, iron and steel-related materials, raw industrial goods, and consumer goods from the neighboring country. 

Source: The Global New Light of Myanmar

Union Construction Minister opens bridges in Ottwin, Shwekyin

by CONSTRUCTION

Union Minister for Construction U Han Zaw officially opened Sittoung River-Crossing Bridge (Myo Soe) in Ottwin Township and Shwekyin Creek-Crossing Bridge in Shwekyin Township, Bago Region. The ministry has set objectives to equally develop roads, bridges and urban areas in regions and states fulfilling the ministry’s primary duty of infrastructure development. Special Bridge Team 10 of Bridge Department constructed the 1,200-foot-long two-lane reinforced concrete bridge, which is located on Kywepwe-MyoSoe-Zayetgyi Road.

The bridge’s upper sections are made up of steel plate girders that were manufactured by J&M Steel Solutions, a company joint-ventured by the Ministry of Construction and Japanese Company JFE. This is 44th bridge opened in Bago Region during the incumbent government.The bridge that connects the towns and villages on old Yangon-Mandalay Highway with eastern side of Sittoung River will bring benefits of economy, social, health and education to local people. The bridge will also connect Bago Region with Kayin and Mon states.At the opening ceremony, the Union Minster made opening remarks and the Chief Minster explained the conditions of regional development, ethnic unity and communications development.

Special Bridge Team 9 of Bridge Department constructed the 1,680-foot-long two-lane reinforced concrete bridge. The upper section of the bridge is made up of reinforcement concrete and pre-stressed post-tension technology.The bridge is one of the main bridges on Taungoo-Kyaukgyi-Shwekyin-Motpalin Road that connects eastern Bago Region with Mon State. The opening of the bridge will bring the developments of economy, social, education and health to 36,000 people in 27 villages of 13 village-tracts in Motpalin side.

Source: The Global New Light of Myanmar

MIC approve multi-million dollar industrial park in Hlegu

by ECONOMY

The Myanmar Investment Commission(MIC) on July 31 approved the US$230.6 million Hlegu Industrial Park, which will be developed by Singapore’s Sembcorp Industries. The project, set to cover some 1487 acres in Hlegu township,Yangon, was signed between Sembcorp CSSD Myanmar Co and local partners City Mart Holding Co Ltd (CMHL), and Myanmar Agribusiness Public Corp( MAPCO) in July 2019.Sembcorp is expected to hold a 67 percent stake in the project, while City Mart Holding and MAPCO will hold 18pc and 15pc, respectively.

The industrial park has already approved by the Yangon Region Assembly and will focus on food-based industries.Despite having received MIC approval though, the development will likely be delayed due to COVID-19 restrictions. The investors had been expecting MIC approval in January and construction to commence in March, but things were delayed by COVID-19. Once completed, the industrial park will feature an access road to Thilawa Port via the Yangon-Mandalay Road so that goods produced in Hlegu can easily be exported and also reach parts of the Myanmar hinterland.

Better known for building the US$310 million Sembcorp Myingyan Independent Power Plant in Mandalay, Sembcorp is not new to industrial development, having partnered with countries like China, Indonesia and Vietnam to create integrated townships and industrial parks. The Hlegu Industrial Park was one of seven new projects valued at US$462.7 million in total and with the potential to generate more than 3600 jobs. The other major new investment involves a US$180 million shopping mall from AEON Japan. Singapore, China and Thailand are the top investors in Myanmar this fiscal year, More than half the capital was channeled into the power and oil and gas sectors, while 15pc was channeled into manufacturing.

Source: Myanmar Times

YSX Live Talk Program (Webinar)

by EVENT

Title: Financing Opportunities in Myanmar Capital Market

Date: 7 August 2020, 1:30 P.M

Speakers:

  • U Kyaw Lwin Oo (Chairman, Ever Flow River Group Public Co., Ltd)
  • U Pyae Phyo Aung ( Deputy Senior Manager, YSX Deputy Director, Ministry of Planning, Finance and Industry)
  • U Htet Win Latt @ Vinay ( Manager, Investment Banking, Myanmar Securities Exchange Centre Co., Ltd)

Contact Address: http://www.facebook.com/ysx.myanmar/

Organizer: Yangon Stock Exchange