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

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