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US$300 million worth fish auction market project to be implemented in Myeik

A fish auction market project in Myeik with an investment of some US$300 million will be implemented as earlier as possible, said an official from the Myeik Public Corporation. The market will be built on Kyweku-Kyaukphya river bank in Myeik town, Myeik District of Taninthayi Region. The new fish auction market project will include constructing a jetty to load and unload the fish, along with the structure of a residential area. The project has been delayed before, and it will now be undertaken as promptly as possible.

The project can bring revenue to the country and create job opportunities for the locals. Phase 1 of the project is to build a jetty to charge and discharge the fish cargoes and make cold storages. In contrast, Phase 2 of the project will cover the construction of the factories to manufacture finished products from raw materials. Phase 3 of the project comprises the construction of the residential areas. And, Phase 4 involves the building of expansion facilities to support the factories.

Concerning the project, a proposal has been submitted previously. But, the project has yet to complete, and a new proposal has been submitted again. The project will be implemented on a 700-acre plot of land. The Union minister and officials will come to inspect the project area, the Myeik Public Corporation official elaborated. Although the fish auction market project was proposed to carry out on 2,000 acres of land, now it will be built on 700 acres of land if the permit is granted. Upon completing the project, the fish market could be taken back from Thailand, where the Myanmar fish market has externally existed for more than 20 years.

Source: The Global New Light of Myanmar

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Investments from Hong Kong SAR top $87 mln in 4 months (Oct-Jan)

Hong Kong SAR, the third-largest investor in Myanmar, pumped in US$87 million with five projects as of January-end, according to the Directorate of Investment and Company Administration (DICA). Hong Kong puts investment in real estate development, electricity, and garment businesses. Singapore is the top source of foreign direct investments into Myanmar in the first four months of the current financial year 2020-2021, bringing in $378 million under 12 projects.

China stood as the second-largest investors this FY, with an estimated capital of $139.354 million from 10 enterprises. Those enterprises listed from Thailand, India, Japan, Malaysia, the Republic of Korea, the UK, Viet Nam, Marshall Island and China (Taipei) also made investments this year. Myanmar has attracted foreign direct investments of more than US$672.59 million in Oct-Jan of the current FY. They include expanding capital by existing enterprises and acquisitions in the Special Economic Zones, DICA’s statistics indicated. MIC intends to reach an FDI target of $5.8 billion for the current FY2020-2021.

Myanmar is trying to attract foreign investment by providing tax relief, tax incentives, investment opportunities, and fast processing proposals. However, the Ministry of Investment and Foreign Economic Relations is inviting only responsible businesses to the country. The economic interaction between Myanmar and Hong Kong SAR has been increasing rapidly. Hong Kong emerged as the third-largest investor in Myanmar after Singapore and China. Between FY2016-2017 and January 2021, 144 enterprises from Hong Kong brought in foreign direct investment of $2.5 billion into Myanmar, according to an official data on permitted enterprises released by the DICA.

Source: The Global New Light of Myanmar

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Myanmar pulls $672.59 mln in 2020-2021FY

Myanmar attracted foreign direct investment of more than US$672.59 million between 1 October and 31 January in the 2020-2021 budget year, including an expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, according to the Directorate of Investment and Company Administration (DICA). MIC intends to reach an FDI target of $5.8 billion for the current FY2020-2021. The Ministry of Investment and Foreign Economic Relations has been inviting responsible businesses to benefit the country.

Myanmar Investment Commission (MIC) ensures to approve the responsible businesses by assessing environmental and social impacts. The commission is working together with the relevant departments to screen the projects. Singapore is the top source of foreign direct investments into Myanmar in the first four months of the current FY, DICA’s statistics indicated. China stood as the second-largest investors this FY with an estimated capital of $139.354 million from 10 enterprises, followed by Hong Kong SAR investing $87 million in Myanmar.

Those enterprises listed from Thailand, India, Japan, Malaysia, Republic of Korea, UK, Viet Nam, Marshall Island and China (Taipei) also made investments this year. Of 38 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 31 January of the current financial year, 20 enterprises pumped FDI into the manufacturing sector. The power sector received six projects, and the livestock and fisheries sector attracted five projects.

Other service sector drew four projects while the agriculture sector pulled two projects, and one foreign enterprise entered the hotel and tourism sector. The FDIs stood at $6.9 million from 158 enterprises in the FY2016-2017, $6.119 billion from 234 businesses in the FY2017-2018, $1.94 billion from 89 projects in the 2018 mini-budget year, $4.5 billion from 298 enterprises in the FY2018-2019 and $5.689 billion from 253 businesses in the FY2019-2020, respectively, the DICA’s data indicated. Those enterprises have created over 96,000 jobs in the FY2016-2017, 110,000 jobs in the FY2017-2018, over 53,000 jobs in the 2018 mini-budget period, over 180,000 jobs in the FY2018-2019 and 210,000 jobs in the FY2019-2020, respectively.

Source: The Global New Light of Myanmar

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Singapore tops FDI list in Myanmar as of Jan-end

Singapore is the top source of foreign direct investments into Myanmar in the first four months of the current financial year 2020-2021, according to the data released by the Directorate of Investment and Company Administration (DICA). Twelve Singapore-listed enterprises brought in US$378.327 million into Myanmar between October 2020 and January 2021. Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors. China stood as the second-largest investors this FY with an estimated capital of $139.354 million from 10 enterprises, followed by Hong Kong SAR investing $87 million in Myanmar.

Those enterprises listed from Thailand, India, Japan, Malaysia, the Republic of Korea, UK, Viet Nam, Marshall Island and China (Taipei) also made investments this year. Myanmar has attracted foreign direct investments of more than US$672.59 million in Oct-Jan of current FY, including the expansion of capital by existing enterprises and investments in the Special Economic Zones, DICA’s statistics indicated. Of 38 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and 31 January of current FY, 20 enterprises pumped FDI into the manufacturing sector. Power sector received six projects, and livestock and Fisheries sector attracted five projects.

Other service sector drew four projects while the agriculture sector pulled two assignments, and one foreign enterprise entered the hotels and tourism sector. MIC intends to reach the FDI target of $5.8 billion for the current FY2020-2021. Singapore has stood as the largest foreign investor in Myanmar since 2012, pulling in the FDI of $1.85 billion in the FY2019-2020, $2.4 billion in the FY2018-2019, $724.4 million in the mini-budget period (April-September, 2018), $2.16 billion in the 2017-2018FY, $3.8 billion in the 2016-2017FY, $4.25 billion in the2015-2016FY, $4.29 billion in the 2014-2015FY, $2.3 billion in the 2013-2014FY and $418 million in the 2012-2013FY respectively. Additionally, Singapore emerged as the second-largest foreign investor in the Thilawa Special Economic Zone, after top investor Japan.

Source: The Global New Light of Myanmar

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Foreign investments in Myanmar under threat

The country’s foreign direct investments (FDI) may come under threat with at least one major project already put on indefinitely due to the current political unrest. Chief Marketing Officer from the Amata Group Viboon Kromadit told the media on February 2 that the $274 million Yangon Amata Smart and Eco City Project has been suspended indefinitely due to Myanmar’s current forced “transfer of power”. Viboon Kromadit was quoted by other media to have described the situation as “the worst-case scenario” for the project which is backed by Thailand investors. They also reported that the suspension will last until a new election has been called.

The project – jointly developed by the Myanmar Department of Urban and Housing Development and Thailand’s Amata Corporation PCL- is expected to create more than 35,900 job opportunities for locals in the country. The Yangon Region Government announced in December last year that they had already started work on the development. It will built in five phases over the span of five years on 2,000 acres of land in Dagon Myothit, Yangon Region. Myanmar holds a 20 percent stake in the project while the remaining 80 pc is held by the Thai company. Meanwhile, construction of the US$110 million Korea-Myanmar Industrial Complex (KMIC) in Hlegu twonship, Yangon has also commenced and more than 130 Korean businesses have already expressed interest to invest.

Land plots are now on sale. Mr Non Hun Seung, a General Manager at the KMIC, said work on the industrial zone is still ongoing. The Dala bridge project, meanwhile, is trudging on said by the Ministry of Construction. Residents expressed fears that work on the South Korea-Myanmar Friendship Bridge would come to a halt but a senior government official said they are determined to keep the construction going. According to the deputy director-general of ministry, operations cannot be suspended at all. They will continue the drilling work for the installation of the bored piles. They have completed 25pc of the operations. Work on the bridge was temporarily suspended during the COVID-19 pandemic, prompting residents to fear the same when the country’s political unfolded on February 1.

Source: Myanmar Times

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Foreign investors buy more than 4502,600 shares of four companies listed on the Yangon Stock Exchange in the past 10 months

Foreign investors have bought more than 4502,600 shares of the four companies in the past 10 months, allowing foreigners to buy shares in companies listed on the Yangon Stock Exchange, according to figures released by the Yangon Stock Exchange. Starting from March 20, 2020, foreigners, Foreign organizations were allowed to buy shares in the Yangon Stock Exchange. As of January 27, 2021, 4502,679 shares were purchased from four of the six companies listed on the Yangon Stock Exchange. The number of shares purchased by each company is 4458,136 shares in First Myanmar Investment Company Limited (FMI); 31973 at Thilawa AS Isaac Holdings Public Limited (MTSH); 7,125 at Ever Flow River Group Public Co., Ltd; 5445 at TMH Telecom Public Co., Ltd. Yangon Stock Exchange (YSX) List of companies that want to invest in shares of companies listed on the Yangon Stock Exchange (YSX). 

Ministry of Finance and Industry The Securities and Exchange Commission issued a notification No. (4/2020). The Securities and Exchange Commission of Myanmar (SEC) has issued Notification No. (1/2019) and Directive No. (1/2020) and allowed foreigners to participate in the daily trading of shares of companies listed on the Yangon Stock Exchange. According to Article 3 (c) of Directive (1/2020), foreigners (including individuals and organizations) wishing to invest must first visit a securities company and obtain a letter of recommendation.  After that, Resident Kyat Account for Securities (R-KAS) for domestic residents and Non Resident Kyat Account for Securities (N-KAS) and Non-resident Foreign Currency Account for Securities (N-FAS) accounts can only be opened in Securities Companies.

Therefore, foreigners wishing to invest in the shares of companies listed on the Yangon Stock Exchange (YSX) open and trade in the bank accounts specified by the Commission. Ministry of Finance and Industry The Securities and Exchange Commission has issued a petition. The Central Bank of Myanmar has issued Directive No. 3/2020 on the requirements for banks to be involved in the daily trading of shares of companies listed on the Yangon Stock Exchange. According to the Notification No. (1/2019) and Instruction No. 1/2020 of the Securities and Exchange Commission, foreigners living in the country and foreigners living in the country will be allowed to trade the shares of listed companies on the Yangon Stock Exchange. Instruction No. 1/2020; According to Article 19, foreigners are required to bring their investment into Myanmar in the trading of shares by Foreign exchange management law, and Foreign Exchange Management Rules and Regulations issued by the Central Bank of Myanmar, the instructions must be strictly followed and supervised by the Central Bank of Myanmar.

Source: Daily Eleven

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Mon State calls for investors in the fisheries sector

Mon State is calling on both local and foreign investors to take advantage of its strategic location and geography to invest in the fisheries sector. The Chair of the Mon State Fisheries Federation said that interested parties can invest in the sector to produce finished and value-added products. Other players in the industry see such investments as an opportunity to further develop the state and its economy. They would like to invite investors to gain access to modern technology.

Mon State in return can offer our land, lakes, and labour. Mon State is geographically connected to the Andaman Sea and Gulf of Mottama in the West with more than 140 miles of coastline. Fisheries related businesses are a key driver for the state’s economy. Shipping by sea is readily available and transportation by road is also an option for exports to China, Thailand and India. Mon State should invite businesses that will invest in canned fish or dried fish factories said by the local businessman. The state usually produce more than 100,000 tonnes of prawns and shrimps every year.

As much as 12,000 tonnes are exported to China, Singapore and Malaysia annually. Approximately 80 percent of the fishery products that are produced within the state are exported to China. Mon’s call for investors comes on the back of a decline in fisheries exports due to the COVID-19 pandemic. While the value of Myanmar’s fish export market increased form US $ 732.2 million in the 2018-19 fiscal year to $858.9 million in 2019-20, this figure is projected to drop drastically as the market has been plagued by difficulties arising from the COVID-19 outbreak.

The government will try to negotiate with other countries to connect and export fishery products to their markets. Moreover, the Ministry of Agriculture, Livestock and Irrigation need to negotiate with the Myanmar Fisheries Federation and the respective departments to issue COVID-19 free certificates on the fish produced in the country. This will help identify and set standards, upgrade the technological skills of the staff and improve the knowledge of the cold storage facilities. It is also added that the Department of fisheries and Cooperative Department will also collaborate to improve local fish consumption.

Source: Myanmar Times

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Myanmar cancels contracts to develop Dawei SEZ with ITD

The Italian Thai Development Public Company (ITD) has informed the Stock Exchange of Thailand that contracts signed between the company and Myanmar involving work on the first phase of Dawei Special Economic Zone have been cancelled. Myanmar was reported to have cancelled seven out of eight contracts made in 2015 for development of the SEZ after ITD failed to deliver its part of the agreement. When contacted, the Dawei SEZ Management Committee from Myanmar said the cancellations have yet to be officially announced. They have yet to approve the cancellations and have no comment at the moment.

The ITD is seeking legal counsel on how to proceed given the circumstances. Last month, the Japanese government said that it would commence a survey to determine the total amount of capital expenditure required to participate in the development of the Dawei deep sea port project. Myanmar is now counting on financial and technical support from Japan to kickstart construction of the long-delayed SEZ after Japan in November made an official offer to Myanmar and Thailand to invest in Dawei.

The DAwei SEZ is expected to be the largest SEZ in South East Asia- about eight times larger than Thilawa SEZ in Yangon- and over ten times larger than Kyauk Phyu SEZ in Rakhine when complete. Located 20 kilometers north of Dawei, the captial of Tanintharyin Region in Myanmar’s southeast coast bordering Thailand, the Dawei SEZ comprises 20,000 hectares of land and includes industrial as well as port facilities. Loans have been acquired from the Thai to construct a highway between Dawei and the Thai Border, which will be complete in 2023. Work to connect the SEZ to the national grid is expected to be completed in 2023 as well.

Source: Myanmar Times

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More than 1,050 foreign-invested businesses worth $ 25.5 billion have been invested in Myanmar during the current government’s five-year term

From the 2016-2017 fiscal year to the end of 2020, the amount of foreign investment in Myanmar reached over $ 25.5 billion, according to the Directorate of Investment and Company Administration. From the 2016-2017 fiscal year to the end of 2020, 995 foreign-invested companies have invested in Myanmar, ranging from $ 24.165 billion. According to the SEZ law, 60 foreign-invested businesses in the Thilawa SEZ have invested up to $ 1.382 billion. During that period, 1,055 foreign-invested companies in Myanmar invested a total of $ 25.548 billion. During this period, production in Myanmar; Transportation; Housing development; Energy Hotel and tourism; Livestock and fisheries; Construction of industrial zones; Oil and gas; Agriculture; Mining; Foreign investment was the main source of investment in 11 sectors, including services.

In the manufacturing sector, 719 companies invested $ 6.289 billion, accounting for more than 26 percent of the total. In the transport sector, 29 companies invested $ 6.135 billion, accounting for more than 25 percent of the total. $ 3.6 billion investment in housing development; $ 3.222 billion in investment in the energy sector; More than $ 806 million invested in the hotel and tourism sector; Over $ 463 million invested in the livestock and fisheries sector; More than $ 390 million invested in industrial zone construction; More than $ 360 million in investment in the oil and gas sector.

 More than $ 190 million in investment in the agricultural sector; More than $ 11 million has been invested in the mining sector and more than $ 2.6 billion in the services sector. The director-general of the Directorate of Investment and Company Administration said that the Myanmar Investment Commission has received proposals for 24 projects worth $ 3.5 billion in foreign investment for the 2020-2021 fiscal year. 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.

Source: Daily Eleven

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Manufacturing sector attracts 13 foreign enterprises in Q1

Majority of foreign enterprises eye the manufacturing sector for investments in the first quarter of the current financial year 2020-2021, pulling in US$158 million from 13 projects, the Directorate of Investment and Company Administration (DICA) stated. Myanmar has attracted foreign direct investments of more than US$348.8 million in Oct-Dec of current FY, including the expansion of capital by existing enterprises and acquisitions in the Special Economic Zones, DICA’s statistics indicated. Out of 23 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and 31 December of current FY, 13 enterprises pumped FDI into the manufacturing sector.

Livestock and Fisheries sector attracted three projects while agriculture, power and other services sector pulled two projects each and one foreign enterprise entered the hotels and tourism sector. At present, labour-intensive enterprises face 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 labour force are prioritized, MIC stated.

During the current FY2020-2021, Myanmar Investment Commission (MIC) will give the go-ahead to 24 proposals submitted in the previous FY2019-2020. The commission is carefully assessing the projects, and upon approval of the ministries concerned, it will grant permission. Twenty-four foreign investment proposals have an estimated capital of over US$3 billion. The commission is carefully reviewing 24 proposals due to large projects, he continued. MIC intends to reach the FDI target of $5.8 billion for the current FY2020-2021. According to the DICA data, the country almost reached an FDI target of $5.8 billion in the 2019-2020FY. However, due to the COVID-19 impacts, it has only registered FDI inflows of $5.68 billion.

Source: The Global New Light of Myanmar