Myanmar’s exports of agricultural products between 1 October and 10 January in the 2019-2020 financial year rose to US$998.728 million from $844.747 million in the corresponding period of the 2018-2019 FY, which reflects an increase of $153.98 million.
In the export sector, the agriculture industry performed the best, along with the natural gas sector. The chief items of export in the agriculture sector are rice and broken rice, pulses, corn, and rubber. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro products are also exported to other countries.
Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. However, the export market remains uncertain due to unsteady global demand.
According to the Myanmar Rice Federation, quality control and food safety are key to the promotion of exports. Therefore, improved agricultural practices need to be developed.
Additionally, the country requires specific export plans for each agro product, as they are currently exported to external markets based upon supply and demand. Contract farming systems, involvement of regional and state agriculture departments, exporters, traders, and some grower groups are required in order to meet production targets.
The Commerce Ministry is working to help farmers deal with challenges, such as high input costs, procurement of pedigree seeds, high cultivation costs, and erratic weather conditions.

Source: The Global New Light of Myanmar

Foreign investments of US$76.14 million have flowed into the Special Economic Zones (SEZs), under the Special Economic Zone Law, as of 10 January in the 2019-2020 financial year, according to figures released by the Directorate of Investment and Company Administration (DICA).
A total of 115 enterprises from 18 countries and four local businesses ploughed in $1.92 billion as of end-December, 2019 in the zones, data on investments by permitted enterprises shows.
Japan has topped the list of foreign investors so far, accounting for more than 35 per cent of the overall investment, followed by Singapore and Thailand. FDI also flowed into the SEZs from the Republic of Korea, Hong Kong, the UK, Australia, the UAE, Malaysia, Austria, China (Taipei), Panama, China, Brunei, Viet Nam, France, Switzerland, and the Netherlands.
At present, more than 70 businesses are operating in the Thilawa SEZ, and some businesses are beginning to export goods. The SEZ is employing over 20,000 workers, including permanent and construction workers, according to the management committee.
A company exporting at least 75 per cent of the production in value is registered as a Free Zone investor, and is exempt from paying corporate tax for 7 years from the time it starts commercial operations. Companies such as logistics, which support export-oriented manufacturing, can also be free zone companies. Domestic-oriented manufacturing companies are regarded as promotion zone companies, and they are eligible for a five-year holiday on corporate tax.
There are other tax incentives for free zone and promotion zone investors on importation of capital goods, raw materials, and merchandise, and consigned goods and vehicles. Further details about the tax system are available on http://www.myanmarthilawa.gov.mm.
While the manufacturing sector has absorbed the largest share of foreign investments, FDI has also flowed into the trading, services, transportation and logistics, real estate, and hotel sectors in the past.
Myanmar is currently implementing three Special Economic Zones — Thilawa, Kyaukpyu, and Dawei. Out of the three, Thilawa is leading with better infrastructure and successful businesses.

Source: The Global New Light of Myanmar

Japanese tech major NTT is diving into Myanmar’s nascent but fast-growing digital economy with its newly-established subsidiary.The company announced that its subsidiary NTT Myanmar was granted a business-to-business wholesale licence from the commerce ministry to offer ICT solutions in the Myanmar market.

The capital investment of NTT Myanmar is US$5 million (K7.2 billion),Today’s digital landscape is changing rapidly. Hence, they are constantly innovating and working to meet their clients’ ongoing needs.Their commitment is to deliver intelligent, end-to-end solutions to their clients in Myanmar as the nation moves forward with its digital transformation road map. The company’s tech expertise will help drive growth in local companies.In addition, NTT Myanmar also plans to support firms in the education and financial sectors in developing ICT-related human resources.

Myanmar’s telecommunications industry is growing at 6-12 percent annually, and represents a strong market potential.NTT has invested US$400 million to build the MIST – a large-capacity submarine communications cable between Singapore, Myanmar and India. The scheme is part of a strategic joint venture for international submarine cables in Southeast Asia. Listed in Tokyo, New York, London and Osaka, the Tokyo-based firm is one of the largest telecommunications companies in the world in terms of revenue.

Source: Myanmar Times

UK-funded DaNa Facility is launching a fintech challenge in Myanmar to promote further financial inclusion.The Fintech Challenge Myanmar 2020 (FCM2020), open to local and international fintech firms, is organised in partnership with the United Nations Capital Development Fund (UNCDF) and the Asian Development Bank’s ADB Ventures.

Topics include: digital and financial literacy; microinsurance, MSME finance/alternative lending; digital remittances; and green finance. This is going to be a very good thing for Myanmar’s consumers. In a few years’ time, your phone will be your bank. As rural farmers, micro and small enterprises, and low-income urbanites face difficulty in receiving financial services from financial institutions, fintech aims to fill this gap. FCM2020 will focus on fintech solutions that can improve the quality and quantity of financial services to the underserved and unbanked.

“In the payment space, we definitely need financial innovation to drive interoperability and promote greater access to financial services,” said U Bo Bo Nge, deputy governor, Central Bank of Myanmar.Successful applicants will take part in a two-month period of collaboration and mentoring with a financial institution. Fintechs will participate in a competitive “Initial Pitch Session”, where they will present their capabilities to a panel of financial industry players, financial experts, and investors. The best fintech solutions providers will have the opportunity to demonstrate their products and services at the Myanmar Fintech Day scheduled for June 2020.

Source: Myanmar Times

Myanmar and Japan signed the four Exchange of Notes for four loan projects, which will be implemented with the loan worth about 120,915 million Yen.The four projects are Yangon Sewerage System Development Project in Yangon, Urban Development Project for the reduction of traffic congestion and the damages affected by the flood in Yangon, the Power Distribution Improvement Project in Yangon and Mandalay and Providing funds to the Regional Infrastructure Improvement Project in Chin, Rakhine, Mon and Kayin states and Taninthayi Region.

India’s ambassador to Myanmar emphasised that all projects being undertaken by India in Rakhine State are aid projects for the welfare of the people of the state. Ambassador Shri Saurabh Kumar said this during a ceremony in Sittwe, Rakhine, to handed over 20,000 kits containing food and tarpaulins worth US$235,000 (K341 million) for people displaced by conflict.

India is currently involved in the Kaladan Multi Modal Transit Transport Project (KMMTTP ) in Rakhine. The ambassador said the strategic project to link the port of Kolkata in India with Sittwe is important for Myanmar and India. The project comprises three stretches that include shipping, inland waterways and road transportation.

The longest among these stretches is the shipping segment from Kolkata to Sittwe. The project is expected to boost connectivity, contribute to job creation and development in the whole region including in Rakhine and Chin State.

Ambassador Shri Saurabh Kumar said that India is looking forward to the early completion of the road and is confident that all concerned will provide assistance towards this objective as the KMMTTP has a huge potential to impact the economy of Rakhine and provide livelihoods to local people. The total cost of the KMMTTP is estimated to US$484 million making it India’s largest grant in aid project abroad.

Source: Myanmar Times

Foreign direct investment (FDI) into Myanmar is expected to grow this year, the Myanmar Investment Commission (MIC) says. FDI into Myanmar in the first three months of fiscal year 2019-20 is double what it was in the same period in the previous fiscal year.FDI in the country shows obvious growth in the current fiscal year.

MIC has approved investments in projects totalling US$1.5 billion since the start of FY2019-20 on October 1, 2019. The commission has approved a significant number of high-value foreign investment projects, it is also working to ensure the projects are sustainable and beneficial.The commission rejected proposed projects that were judged to have the potential to damage the country’s social and environmental landscape within the 15 days stipulated under the Myanmar Investment Law.

The World Bank’s latest Myanmar Economic Monitor report states that FDI inflows showed signs of recovery in 2019. However, the report added that sustaining FDI inflows depends on continued efforts to improve the business environment to attract capital flows in the context of diminishing global flows and Myanmar-specific country risks. Singapore remained the largest foreign investor in Myanmar, followed by China and Hong Kong. The sectors receiving the most foreign investment were oil and gas, followed by power, and manufacturing.

Source: Myanmar Times

Myanmar and China inked 33 agreements spanning infrastructure, power and trade during a bilateral meeting between State Counsellor Daw Aung San Suu Kyi and Chinese President Xi Jinping in Nay Pyi Taw. The two countries signed a concession agreement and shareholders’ agreement for the deep-sea port in Kyaukphyu Special Economic Zone, an important asset in the China-Myanmar Economic Corridor (CMEC).

Kyaukphyu is already an important oil and gas hub for the Chinese, where pipelines through which oil produced in Myanmar is delivered and exported to China. Industry watchers hailed the visit as a success, saying the meeting helped to advance developments, encourage investments and improve bilateral relations.

China serves as a no-questions-asked ally to Myanmar, giving it diplomatic cover as the country faces widespread condemnation over its human rights record. It is threatened with Western economic sanctions over a brutal counterinsurgency campaign that has driven more than 700,000 members of the country’s Northern Rakhine Muslim minority to flee for safety in neighboring Bangladesh.China for years has defended Myanmar in forums such as the United Nations, and Myanmar has returned the favor by following Beijing’s positions on issue such as China’s claims over territory in the South China Sea.China as a top investor and trade partner with Myanmar offers economic insurance if Western nations do impose sanctions.

Source: Myanmar Times

Although China had invested in Myanmar businesses such as energy, construction and transport sectors, they’ve also made investments worth USD20.9 billion in aviation, communications and garment industries.

Commercial Attaché Tan Shufu from Chinese Embassy said that business and trade cooperation between Myanmar and China largely stem from mutual interest. China had mostly stood top in the list of Myanmar’s trade partner list and China was the biggest trade market for Myanmar.

In 2018-19 fiscal year, Myanmar-China trade volume was US$11.36 billion. Myanmar had allowed China to invest in Myanmar businesses worth US$20.9 billion until December last year. They were investing in aviation, communications, agriculture, finance, tourism and garment sectors. They had also supported the Myanmar in improving their living standards.While the Chinese investment was the top in Myanmar for a long time, Singapore overtook China as the investment volume went over US$ 22 billion.

Source:Eleven Myanmar