Posts in category: 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

The Yangon Region Investment Committee (YRIC), at a videoconference held on 14 October, has endorsed three foreign projects from Viet Nam, Republic of Korea and China. Those projects are to be brought in an estimated capital of US$6.904 million. Those enterprises will create 2,279 jobs. They will execute manufacturing of bags and garments on a Cutting, Making, and Packing (CMP) basis, and production and distribution of iron, steel and galvanised iron and building materials, according to the Directorate of Investment and Company Administration (Yangon Region), YRIC stated.

The Yangon Region Investment Committee (YRIC) has endorsed over 130 foreign investment projects with an estimated value of over $280 million in the last financial year 2019-2020, according to the Directorate of Investment and Company Administration. Manufacturing, hotels and tourism, other services, electricity and agricultural sectors pulled in the foreign investments. Majority of the investments went into the manufacturing industry, followed by other service and hotels and tourism industries.

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 Yangon 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

Myanmar has attracted more than US$25 billion of foreign direct investments over the past four and half years under the incumbent government, according to the Directorate of Investment and Company Administration (DICA). The Myanmar Investment Commission (MIC) and the respective investment committees granted permits and endorsements to 1,032 foreign enterprises between the 2016-2017FY and 2019-2020FY, with estimated capitals of US$25.186 billion.

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. The FDIs flow into the 12 sectors; oil and gas, power, transport and communications, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing and other service sectors.

Transport and communications sector topped the investment line-up, followed by the manufacturing industry in the second place and real estate sector in the third place. Of 51 foreign countries and regions investing in Myanmar, Singapore put the most massive investments, followed by China and Hong Kong (SAR). MIC is prioritizing the labor-intensive businesses. In the incumbent government period, domestic and foreign projects employ over 670,000 residents, according to the DICA. 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

India wants to build a US$6 billion oil refinery in Thanlyin, Yangon, to rival China’s investment in Myanmar’s energy sector, according to India’s Foreign Secretary Harsh Shringla and India Army Chief MM Naravane during their joint visit to Myanmar this week, India media have reported. Myanmar has yet to confirm or announce the proposal. Under a Memorandum of Understanding between Myanmar and India signed during President U Win Myint’s trip to India in Februray, the two governments had agreed to advance cooperation in the sector.

The two governments are discussing possibilities to cooperate in the downstream oil and gas sector in Myanmar. The MOEE is now also negotiating terms to purchase power to purchase power from India via cross border transmission following a bilateral meeting held on September 3 between the relevant ministries and officials, including Indian Ambassador to Myanmar Mr. Saurabh Kumar. India is raising efforts to promote its presence in Myanmar energy under its Look East and Neighbors First policies even as China expands investments in the downstream sector.

Several Chinese companies have shown interest to invest in building large oil refinery projects at the Dawei Special Economic Zone in Thanintharyi Region. China-based Yunnan Indo-Pacific Group Zhongan and CNPC East China Design Institute have purposed field surveys for a large-scale oil refinery project in the SEZ which can refine 8 million tonnes of oil a year. Meanwhile, Hong Kong New Energy Investment Holdings Limited, China Huanqiun Contracting and Engineering Co., Ltd, China Petroleun Pipeline Engineering Co., Ltd and China Energy Engineering Corporation are also interesting in building an oil refinery in Myanmar and have submitted proposals to the MOEE.

Source: Myanmar Times

According to the Myanmar Investment Promotion Plan, foreign investment is expected to reach $ 8.5 billion from the 2021-2022 fiscal year, but due to the COVID-19 outbreak, those targets will be reconsidered, according to the Directorate of Investment and Company Administration. Starting from the 2021-2022 financial year, they have set a target of $ 8.5 billion. This is also being prepared for consideration by the Myanmar Investment Promotion and Facilitation Committee, which is mentioned above, in advance of the coming 2021-2022 financial year.

Due to COVID-19, some businesses were allowed to enter due to traffic restrictions, but were not allowed to do so, which reduced 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; There are also restrictions on what can be done after the visit. Similarly, Rangoon and Nay Pyi Taw, most of which have government offices in Naypyidaw, are difficult to access due to traffic congestion.

In the 2018-2019 fiscal year, $ 4.52 billion in foreign investment flowed into Myanmar. Myanmar is implementing a 20-year Myanmar Investment Promotion Plan aimed at becoming a middle-income country by 2030. It also aims to attract more than $ 220 billion in investment in Myanmar over the next 20 years and attract more responsible investment. Aiming to increase foreign investment in Myanmar, the Myanmar Investment Commission, in collaboration with the Japan International Cooperation Agency, drafted a long-term foreign direct investment promotion plan in 2013 and implemented it in 2014.

Source: Daily Eleven

Domestic investments by Myanmar citizens approved by the region and state investment committees have reached K184.9 billion and US$32.195 million over the past 11 months of the 2019-2020 financial year since October, according to the statistics released by the Directorate of Investment and Company Administration (DICA). Between 1 October and 4 September in the current FY, the relevant region and state investment committees gave the green light to 67 local enterprises to invest in various sectors.

As of 4 September, Ayeyawady Region Investment Committee cleared 13 businesses, allowing an estimated capital of US$3.428 million and K41.26 billion, while Yangon Region Investment Committee gave the go-ahead to 12 enterprises with $5.886 million and K26 billion, Taninthayi to 10 projects with $10.5 million and K40.48 billion, Sagaing to eight enterprises with $2.344 million and K12 billion, Mon to five businesses with $4.328 million and K13.6 billion, Kayah to four enterprises with K8.2 billion, Mandalay to three enterprises with $2.957 million and K12.14 billion, Nay Pyi Taw Council to two businesses with $1.634 million and K6.147 billion, Chin to two enterprises with $0.17 million and K2.535 billion, Bago to two enterprises with K5.265 billion, Shan to two projects with K5.67 billion, Kayin to one enterprise with $0.7 million and K5.6 billion, Magway Region to one with $0.042 million and K2.5 billion, Rakhine to one with $0.192 million and K2.499 billion, Kachin to one with K965 million respectively.

The domestic investments are flowing into the executing manufacturing, hotels and tourism, other services, electricity, agriculture, real estate development and mining sectors. Of them, manufacturing sector pulls the most massive investments, followed by hotel and tourism and other service sectors. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to endorse local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million.

While some projects no longer need MIC approval, businesses that are strategic to the government require the permit from the commission. Besides, those businesses that have large capital investments exceeding $5 million and that may have a possible impact on the environment and the local community need to be approved by the DICA’s proposal assessment team and the relevant ministries. With a fast-track way to set up a business in Myanmar having been introduced, investors can apply to the MIC or the state and regional Investment Committees to get their investment proposals endorsed, depending on the business type.

Source: The Global New Light of Myanmar

Thilawa SEZ has invested more than $ 1,360 million in 47 months, with the manufacturing sector accounting for more than $ 1,170 million, according to the Directorate of Investment and Company Administration. According to the SEZ law, Thilawa SEZ received $ 1,366.621 million in foreign investment in 47 months and $ 1,177.451 million in the manufacturing sector. More than $ 1.9 billion has been invested by 111 international companies in Thilawa SEZ, 18 of which are expanding their business, according to Myanmar Thilawa SEZ Holdings Pubilc Co., Ltd.

According to the Myanmar Investment Commission, a total of $ 116.557 million has been invested in the Thilawa SEZ under the SEZ law, including an increase in investment in the first 10 months of the current fiscal year. After COVID-19, there will be opportunities to attract more Japanese investment in addition to Japanese investment in Thilawa SEZ. In addition to Japanese investment in the Thilawa SEZ, there are potential opportunities for further international investment in the COVID-19 beyond. The activities of Myanmar Thilawa SEZ Holdings Public Co., Ltd. in the post-COVID-19 rehabilitation program in our country will play a key role in solving the post-COVID-19 challenges and problems.

113 companies from 18 countries are currently investing in the Thilawa SEZ, which could employ more than 10,000 workers. Thilawa SEZ is currently one of the best industrial zones in Myanmar and is in a position to enjoy the opportunities and benefits of increased productivity. Thilawa SEZ will continue to invite investors as a perfect industrial zone. The industrial zone sector will not be affected by the COVID-19 crisis, but revenue may fall temporarily in the second half of 2020, according to the 2019 Annual Report of Myanmar Thilawa SEZ Holdings Public Co. Ltd. The annual report and financial statements for this year are for the fiscal year 2019, which is from April to September 2019, for the six-month period instead of the regular 12-month period. The net profit for the current six-month period was 8.275 billion kyats, compared to 15.61 billion kyats in the previous 12 months.

Source: Daily Eleven