Govt reveals plans to build new SEZ in Mon State

by ECONOMY

A new Special Economic Zone(SEZ) will be implemented in Mon State, connecting Myanmar with the Mekong Subregion East-West Economic Corridor, government officials said at a Myanmar-Japan Investment Forum on July 29. The SEZ in western Yangon aims to connect with Danang, Vietnam, and will be the largest SEZ in Myanmar if approved. It is expected to cost US$ 117 million to develop and take at least five years to complete.

The criteria for the project includes easy connectivity with countries involved in the economic corridor, being able to construct a deep-sea port and connectivity to Thilawa SEZ via a local transport network. To choose a strategic location, feasibility studies will be conducted and a Master Plan will be drafted with help from an international advisory team. Developers will be selected transparently based on a tender system.

The aim of connecting the Mon State SEZ with Thilawa is for the two areas to operate as a single industrial zone with global standards of transparency and quality.The project includes enhancing urban management capabilities to develop Mawlamyine in Mon State and Hpan-an and Myawady in Kayin State.

Source: Myanmar Times

Myanmar to enjoy investments from Japan, access to trade area under RCEP

by INVESTMENT

Bilateral economic cooperation between Myanmar and Japan will be strengthened during the post COVID-19 period. Stronger ties are needed to ease the impact of the coronavirus on businesses, Japanese officials. Since COVID-19 first struck in Myanmar, Japan has signed three MoUs for infrastructure projects worth of 2199 yen( US$20.5 million) in the country. The first is the Rehabilitation of Vessel Traffic Navigation Aid in the Yangon River.

The Japanese mainly invest in agriculture, livestock and fisheries, production and industry hotels and tourism as well as power.The country has so far invested close to US$2 billion in 120 businesses in Myanmar.Separately, Myanmar is also aimed to cooperate in establishing the world’s largest free trading bloc under the Regional Comprehensive Economic Partnership(RCEP). The RCEP is a proposed free trade agreement(FTA) in the Indo-Pacific region between the ten member states of the Association of Southeast Asian Nation(ASEAN).

Discussions to sign the RCEP commenced in 2012 and is expected to be signed at the ASEAN Summit Meeting in November.Through the RCEP, Myanmar has opportunities to gain access to a large and diversified market, both in terms of revenue and investments. Moreover, Myanmar can cooperate with developed nations and its other emerging peers to improve its own laws for the development of the country’s economy. It can also raise its economic image on the global scale from being a part of the world’s largest trading bloc.

Source: Myanmar Times

Myanmar Sharpens focus on helping local MSMEs amid COVID-19

by ECONOMY

Owners of local Micro, Small and Medium Enterprises (MSMEs) have voiced satisfaction over the government’s interest in the sector after U Ye Min Oo, Yangon Minister for Planning and Finance and Chair of the Region MSME Development Agency met with local MSME owners on July 28. This is the first time their association has met personally with the government. They are officially registered but they have never met with State-level authorities. From the meeting, they learned that the government is increasing its focus on supporting local MSMEs.

MSMEs in Myanmar play a vital role in job creation, innovation, development, poverty alleviation and human resource development, and they could provide opportunities for advanced technologies to enter and a good business and investment environment. The government on July 18 also announced a new K100 billion loan fund targeted at business in agriculture and livestock affected by the global pandemic. The fund will be given out to agriculture and livestock businesses, export/import, manufacturing, supply chain, F&B, foreign job agencies and vocational schools.

The CERP was first announced on April 27 to mitigate the negative impact of COVID-19 on the economy with the first K100 billion fund prioritizing on the most affected sectors sectors such as garment manufacturing, hotels and tourism, and small businesses. The government has since amassed additional funds to help businesses in other sectors. Livestock business felt the effect as a result of travel restrictions,however as the government is relaxing the rules, these businesses are operating again and require support. On top of giving out loans to businesses affected by COVID-19, business expansion loans should be given out as well.

Source: Myanmar Times

UMFCCI Webinar Series

by EVENT

Title: New Beginnings Through Renewed Partnerships Episode (8)

Date: 4 August 2020, 4:00 P.M

Speaker:

  • Dr. Ye Tun Win ( Director General, Livestock Breeding& Veterinary Department, Ministry of Agriculture, Livestock and Irrigation) ,
  • Dr.Ye Tint Tun ( Director General, Department of Agriculture, Ministry of Agriculture,Livestock and Irrigation),
  • Daw Naw Mutakapaw ( Director General, Myanmar Trade Promotion Organization Ministry of Commerce)

Moderator: U Ye Min Aung ( Vice President, UMFCCI)

Contact address: pr@umfcci.com.mm

Organizer : UMFCCI

Three Japanese companies, Eden Group given green light to build gas power plant at Thilawa

by ECONOMY

Myanmar’s government has given written approval to three Japanese trading companies and local conglomerate Eden Group to build a liquefied natural gas power plant at Thilawa in Yangon Region, according to news releases from Nikkei Asian Review and the Ministry of Electricity and Energy. It will be a government-to-government project and a notice to proceed ceremony took place on July 24. 

According to Nikkei Asian Review, the project valued at from US$1.5 billion to 2 billion will generate 1,250 megawatts of electricity. It is one of the largest projects in Southeast Asia. The three Japanese trading companies are Marubeni, Sumitomo Corp., and Mitsui & Co. The notice to proceed had been issued and electricity would be generated in 72 months. The project would create a milestone in strengthening the relationships between the governments of Myanmar and Japan.

Japan’s leading investment in Thilawa Special Economic Zone was also crucial.They expressed thanks to the Japanese companies for their trustful investment as well as to the Japanese government for providing necessary financial assistance. The ministry announced that 50 percent of the whole country had access to electricity in December 2019.

Source: Eleven media

Grab anticipates continued growth in Myanmar with expansion of GrabFood services to Mandalay, Myanmar’s second largest city

by SERVICES

GRAB, on 24 July 2020, has launched GrabFood, its on-demand digital food delivery service, in Mandalay. The introduction of GrabFood in Myanmar’s second largest city comes after the growing popularity and take-up of the service by customers in Yangon in recent months, with thousands of customers ordering their favorite meals daily using the same Grab App they already trust for daily transportation services. With GrabFood, Grab has invested in human resources, city operations, and technology to bring the industry-leading digital ordering platform to Mandalay eaters who can enjoy their favorite foods from all across the city, with convenient, fast and affordable deliveries.

Customers need not head out and meddle with crowds especially as health authorities continue to encourage social distancing; instead, users can rely on GrabGrab anticipates continued growth in Myanmar with expansion of GrabFood services to Mandalay, Myanmar’s second largest city Food to save them time to focus on other daily priorities as they await safe deliveries of their food orders. At launch, GrabFood is ready to cater to customers in the
four major Mandalay townships– Aungmyethazan, Chanayethazan, Chanmyathazi and Maha Aungmye. In preparation for the launch of GrabFood, the Grab Myanmar team on-boarded the largest number of licensed business food merchant-partners among the delivery platforms currently operating in Mandalay. With no minimum order required, customers simply use the Grab App they already trust to easily make orders of their favorite food and drinks. During the initial trial period, orders were found to be delivered by Grab’s efficient delivery-partners on motorbikes to the customer’s doorstep in under 30 minutes .Aided by Grab’s technologies, they are seeing a shift in how people in Myanmar consume their favourite foods as well as how more traditional restaurant operators have embraced digital channels to find and serve more customers as the nation takes steps towards economic recovery.

Grab has on-boarded hundreds of delivery-partners to operate the GrabFood service and provides numerous benefits to protect their livelihoods. In addition to remuneration above the industry standard, GrabFood delivery-partners are positioned for success with safety gear and
equipment, supplies of persona hygiene, along with training on food handling and hygiene as well as road safety. All delivery-partners are
covered by Trip Insurance during each GrabFood delivery. In addition, all delivery-partners are eligible for financial assistance of MMK 200,000 under the Grab Partner Relief Fund should they be diagnosed with COVID 19 or
officially placed into quarantine by the health authorities.

Source: The Global New Light of Myanmar

ADB sees progress in resuming aid to Myanmar - Business Recorder

Myanmar approves ADB loan, outstanding debt hits K40.8 trillion in 2018-19

by ECONOMY
 

ADB sees progress in resuming aid to Myanmar - Business RecorderMyanmar’s outstanding local and foreign debt stood at K40.8 trillion at the end of September 2019, which is close to 40 percent to GDP. Around 63pc of the country’s debt was incurred locally. The largest share of the foreign loans were allocated to the Ministry of Construction and Ministry of Electricity and Energy. Debt levels are expected to rise further this year, with the government borrowing heavily from international institution like the World Bank and IMF to fund national projects as well as its COVID-19 Economic Response Project.

On July 27, Pyidaungsu Hluttaw approved borrowing $171.3 million from Asian Development Bank to fund rural electrification projects in Kayin State as well as Ayeyarwady, Bago and Magwe regions. It is expected to benefit 2815 villages with 400300 hosueholds. The project will generate 160 million-290 million of units of electricity a year. The government will invest $20.5 million in the project from its budget, taking total investments to $191.7 million. The project is expected to be complete by 2027.

When the project is complete, the country will receive between $15 million and $25 million in tariffs from electricity users. The loan is for 32 years, inclusive of eight year grace period during which interest will changed at 1pc. For the remaining 24 years, the interest rate will be 1.5 pc. The economic internal rate of return is estimated to be 15pc, so this can support paying off the loan.

Source: Myanmar Times

Myanmar imports over $890 mln worth iron/steel materials in Oct-May

by ECONOMY

The value of Myanmar’s iron and steel imports for the construction sector is valued over US$893.8 million in eight months of the current fiscal year 2019-2020. Additionally, $386 million worth iron and steel products are also imported during October-May period. At present, Myanmar’s steel demand is estimated about 2.5 million tonnes per year, and 92 per cent of which are imported. The demand is likely to grow up to 5.4 million tonnes per year in 2030. If Myanmar can fulfil the requirements of local steel consumption and focus on import substitution, the steel industry will strategically contribute to the nation’s interest.

Steel consumption includes in calculating economy growth index. 11 executive members of MSA established MSA Public Company Limited and they are making efforts to set up iron and steel industrial zone, to reduce the outflow of US dollar, effectuating the development of steel industry and assisting in the country’s infrastructure building. Studies for implementation of iron and steel industrial zone project are underway in Ayeyawady and Taninthayi regions and Rakhine and Mon states. The project is slated to commence within three to five year after completing studies, he continued. The government needs to support the steel sector by granting tax relief and land rights, controlling illegal import, making anti-dumping law come into the effort and formulating steel policy, according to the MSA.

Steel industry is pivotal in industrial infrastructure building. This project needs to be implemented for prospects of the country’s economy. The MSA will move forward to the development of industry standards which are compatible with the country and the emergence of steel library and steel laboratory. The association will cooperate with the international organizations to grow the steel sector, he added. China is the main supplier for Myanmar’s steel market. Iron and steel are also imported from India and the Republic of Korea. 

Source- The Global New light of Myanmar

Myanmar National Airlines suspends international flights until August 31

by HOTEL & TOURISM

The Myanmar National Airlines (MNA) announced on July 23 that it will extend the temporary suspension of all its international flights( Singapore, Bangkok, Chiang Mai, Hong Kong) until August 31, in order to cooperate with ongoing measures to prevent the spread of COVID-19. The airline will offer full refunds or free flight changes to its passengers. The announcement also states that all flight all flights will resume on September 1.

Myanmar has reported a total of 343 COVID-19 cases including six deaths and 282 recoveries as at 8pm on July 24. The most recent cases detected over the past several weeks have been from returnees who are undergoing facility quarantines.

The government and Department of Civil Aviation have yet to issue official announcements on an extension of the existing July 31 flight ban. However, the government is also making arrangements to form “fast lanes” through which those who wish to return on urgent business can contact their embassy for special arrangements. These agreements will start with Japan and China and be extended to other countries later.

Source:Myanmar Times