Chinese businessmen have proposed setting up a Myanmar – China exclusive industrial zone in Myanmar, according to U Zaw Min Win, the President of UMFCCI. If they are committed to responsible business, we are willing to invite investments by setting up a Myanmar-China exclusive industrial zone, said U Zaw Min Win, while submitting the request at the 29th meeting of Vice President U Myint Swe with private entrepreneurs.

The Yangon Region government is planning to sell land to those engaged in the private business development sector. The land will be sold under two categories — commercial business and housing. Foreigners are not allowed to wholly invest in land, but they can set up joint ventures with local businessmen. Land will be sold only to those investors who run a legitimate business. After that, the regional government will pay out compensation for confiscated farmland.

With the income generated from selling the land, the regional government will pay over K200 billion in compensation to farmers whose farmlands have been confiscated. Land in Hlinethaya, Shwephyitha, and four Dagon Myothit townships is up for sale. Yangon Region has 29 industrial zones. China is the second largest foreign investor in Myanmar. Between 1988 and July-end 2019, 372 China-listed enterprises have brought in US$20.8 billion into the country.

Source: Global New Light of Myanmar

Myanmar has accumulated US$10.2 billion in debt owed to more than 20 countries and multilateral organisations, the Joint Public Accounts Committee of the Pyidaungsu Hluttaw noted in a report on the Union budget for the 2017-18 fiscal year.

The Ministries of Home Affairs; Agriculture, Livestock and Irrigation; Transport and Communication; Electricity and Energy and; Industry took the largest loans. The amount of loans rose by more than US$1 billion (K1.587 trillion), or 11.5pc, between fiscal 2016-17 and 2017-18. As of March 2018, loans from China formed the biggest amount totaling US$4 billion. Some US$1.11 billion has been repaid.

The Export-Import Bank of China (Exim China) was the creditor for the majority of the loans taken out by the Ministries of Electricity and Energy; Defense; Industry and; Agriculture, Livestock and Irrigation. Meanwhile, Myanmar still owes Japan US$2.5 billion, which was drawn down from a credit line of US$6 billion. Other creditors include multilateral organisations such as Asian Development Bank, International Monetary Fund, India, Thailand and the UK.

The report pointed out that higher interest rates, a weak kyat and rising management costs had taken a toll on government finances, particularly when regular payments on the loans were still being made for businesses that have failed.

Source: Myanmar Times 

Myanmar Investment Commission (MIC) has recently permitted nine more investment enterprises from home and abroad, according to a release from the Directorate of Investment Company Administration (DICA).

The permitted enterprises included foreign enterprises with 101.172 million U.S. dollars’ investment capital and local enterprises with a capital of 110.7 billion kyats (73.8 million U.S. dollars). The investments entered the country’s manufacturing, livestock and fisheries, hotel and real estate sectors, creating 3,029 local employment opportunities.

From the fiscal year 1988-1989 to June 30 of the current fiscal year 2018-2019, a total of 1,752 enterprises were permitted with 80.89 billion U.S. dollars so far, according to the DICA’s data. During the period, the oil and gas sector attracted 27.72 percent of total investments, followed by power sector with 26.18 percent and the manufacturing sector with 13.82 percent, respectively.

Oil and gas, power and manufacturing sectors are in the top-three list with most foreign investments during the period. Regionally, the Yangon region attracted 60 percent of investments from both home and abroad, followed by Mandalay with 30 percent and the rest flowed into other regions and states.

Source: Xinhua 

From 1988-1989 FY to 2018-2019 FY, the government gave the green-light to 1725 investments worth over 80.234 billion USD, with the oil and gas sector topping the list, according to the figures released by the Myanmar Investment Commission (MIC). The oil and gas sector topped the list with over 22 billion USD, accounting for 27.94 per cent of the total FDI, the energy sector, second, with over 21 billion USD or 26.40 per cent, the production sector, third, with nearly 11 billion USD or over 13 per cent, the transport and communication sector, over 10 billion USD or over 13 per cent.

The MIC allows the permits for special economic zones according to the relevant Special Economic Zone Laws. Since its inception till late May, the MIC allowed the permits to more than 110 foreign investments and FDI inflow into the Thilawa SEZ amounted to over 1.7 billion USD. The total investments during 30 years plus the inflow of FDI into the Thilawa SEZ reached nearly 82 billion USD. Myanmar is implementing the 20-year Myanmar Investment Promotion Plan to ensure that Myanmar becomes a middle-income country by 2030. In addition, the total FDI inflow is set to reach over 220 billion USD during the next 20 years.

Source: Eleven Myanmar

Myanmar is expecting to be K7 billion short of state funds to support development in fiscal 2019-20, a projected fiscal deficit of 5.9 percent GDP compared to the 5.4pc budgeted for the current year. Meanwhile, financing sources for the fiscal deficit have also become more diversified. The share of Central Bank financing has declined from a high of 61pc of total domestic financing in 2015-16 to almost zero during the transition period between April and September last year and the first two months of 2018-19, data showed. During the period, sovereign T-bill and T-bond auctions almost fully met the domestic financing needs.

U Soe Thein, deputy governor of the Central Bank of Myanmar, said the fiscal deficit would mainly be financed by bonds in the coming years. For fiscal 2018-19, half of the K4.7 trillion deficit will be financed through bonds, he said. Although the government has increased bond and bill auctions to K3.8 trillion from October 2018 to February 2019 compared to K3.6 trillion October 2017 to February 2018, market participation has remained below potential due to negative interest rates.

To help spur participation in the bond market, the World Bank said that more attractive coupon rates reflective of market conditions are needed. Meanwhile, observers said that for Myanmar to better develop its debt markets, speedier reforms are needed. Daw Sandar Oo, chair of Myanmar Insurance Association, said a more mature local insurance industry can help by buying these bonds and bills. “Everybody benefits, the government because it gets to sell its bonds, the insurance firms as it gets to hedge its premiums with more stable government debt and the people as they get to have more choice in financial products,” she said.

Source: Myanmar Times 

The Asia Foundation has published the Myanmar Business Environment Index 2019 (MBEI), with support from the UK’s Department for International Development (DFID) through the DaNa Facility. The report is a diagnostic tool for government and the private sector to better understand the local business environment. It aims to provide the authorities at different levels with evidence to pursue decentralised economic governance reforms. Based on a nationwide survey of 4874 businesses in the services and manufacturing sectors, the MBEI reflects the feedback from private enterprises across the country. The study measures ten components of good economic governance and provides insights and analysis that government may use to further improve Myanmar’s business environment.

The key findings are:

85pc of Myanmar businesses have at least one documented proof of formalisation; in most cases it is an operating license from the township or City Development Committee. Regulation and administrative procedures for businesses after they have become legal to operate are not burdensome by international comparison; many SMEs in Myanmar are in sectors that could be impacted by environmental harm and therefore show a strong preference for a clean environment. Recruitment of qualified workers, particularly technicians and managers, is a major challenge for businesses in Myanmar. Quality of infrastructure is a severe concern for businesses, particularly with respect to road and electrical infrastructure. Critical documents for business planning, such as local budgets, are often unavailable to the average business owner.

Source: Myanmar Times 

Belt and Road Initiative (BRI) focused China-Myanmar Media Forum was held on Yangon in May.

Chinese Ambassador Hong Liang said ” It is pleased to witness the bilateral friendship becomes deeper and media persons from both countries should be praised for their efforts for being a bridge between two countries’ people for the promotion of the development of cooperation between China and Myanmar” at the event.

Monywa Aung Shin, Editor-in-chief of D-wave journal, pledged to continue efforts for the further cooperation between Myanmar and China, on the Belt and Road Initiative and on implementation of China-Myanmar economic corridor, the Xinhua news agency reported.

Source: Business Standard

Adani Group received approvals to develop a new container terminal in Myanmar as the diversified conglomerate spreads its port operations beyond Indian shores.

The land where the port is proposed to be built has been leased from the Myanmar Economic Corporation (MEC). Adani operates five ports in India and one in Australia. This will be Adani’s second international port after Australia.

Adani Yangon International Terminal, a company incorporated in Singapore, received approval from the Myanmar Investment Commission on April 26 to develop, operate and maintain the Ahlone International Port Terminal-2 (AIPT-2) under a 50-year Build, Operate and Transfer agreement with the government, according to the Directorate of Investment and Company Administration (DICA).

Source: The Hindu Business Line