YOMA Bank, one of Myanmar’s largest commercial banks, signed a loan agreement with authorized dealers of Myanmar CP Livestock (MCPL), a leading agro-industry and food business in Myanmar, on Friday, according to a press release issued by the bank. The joint agribusiness finance programme aims to facilitate livestock dealers and farmers with working capital to buy animal feed from the Myanmar CP Livestock, which is currently operating four feed mills in Yangon, Taunggyi and Mandalay, with a total capacity of around 750,000 tons per year.

This is Yoma Bank’s new innovative financing for the development of local small- and medium-enterprises. With this program, individual farmers and dealers will have access to a formal financial system to grow their livestock businesses.

Under the new loan system, applicants are not required to put up any physical collateral, typically requested by banks in Myanmar, but rather earn unsecured bank credit, based on their positive track record. The agribusiness finance program ensures to develop the country’s poultry sector by providing this need-based financing program for local farmers and other stakeholders, who might currently be excluded from the formal financial system.

Source- The Global New Light of Myanmar

Myanmar Investment Commission (MIC) allowed 16 companies to assemble automobiles, so there were nine foreign investments and seven Myanmar citizen investments in the automobile sector.

As the foreign investments, Suzuki (Myanmar) Motor Co.,Ltd and Khaing Khaing Sang Da Group Co.,Ltd get permission to manufacture Suzuki branded cars, Tan Chong Motor Myanmar Co.,Ltd was permitted to manufacture Nissan cars, SC Auto (Myanmar) Company Limited was allowed to manufacture Scania commercial vehicles, Capital Motors Limited , Gold AYA Motors International Group Co.,Ltd , and Go Excellent (Myanmar) Co., Ltd were allowed to assemble Ford branded cars, and Daewoo Bus Myanmar Co.,Ltd was permitted to manufacture Daweoo commercial vehicles.

As for the Myanmar citizen investments, Rammer Automobile Manufacturing & Trading Co.,Ltd was permitted to manufacture Micro Bus vehicles, and Dynamic Industry Co.,Ltd , Myanmar Economic Holdings Ltd , Myanmar Motor Corporation , Public Company Limited ,Aung Gabar Motor Services Company Limited get permission for manufacturing KIA branded cars, according to MIC.

Source: Automobile

Myanmar Investment Commission (MIC) has allowed Korea-based Daewoo Company manufacturing, assembling and maintenance services for passenger buses in Mingladon Township, Yangon Region, under a Joint Venture Investment.
The information came from the MIC’s meeting held in Yangon on August 25th. The meeting aimed to securitize the suggestion that was submitted in accordance with the MIC laws and it approved three orders of investments.
The Daewoo Bus Myanmar Company Limited Korea was given green light to manufacture Daewoo buses in Mingladon Township, Yangon Region, Yangon Golden Paragon Investment Co;LTD was allowed for Construction, Operation and Leasing of Residence and Commercial Area in Tharkayta Township, Yangon and Science and Tech International Myanmar University Co;LTD was also allowed to provide education services in the Mandalay Region. Those businesses must and are operating under the Joint-venture foreign investment laws.

Source: Daily Eleven

Operating conditions across Myanmar’s manufacturing sector deteriorated to the greatest extent in the series history in August. The overall performance was hampered by strong falls in output and new orders. “Despite weak demand conditions, firms raised their output prices steeply. A sharp fall in the value of the kyat over the last couple of months has pushed up the costs of imported goods, reflected in a marked rise in input prices. Higher charges reportedly stemmed from strain on profit margins following the fastest rise in costs since the survey began in December 2015. On a more positive note, goods producers were more buoyant in their optimism towards future output. Subsequently, business  confidence reached a nine-month high following muted sentiment in recent months.

Key points:

• Manufacturing operating conditions deteriorate for second month running
• Output and new orders contract at faster rates
• Inflationary pressures intensify

Source: IHS Markit

Myanmar Awba Group, Myanmar’s largest manufacturer and distributor of agricultural technology, launched Myanmar’s first private agrochemical production complex in Yangon Region on August 19.

The US$35 million Hmawbi Agricultural Input Complex (HAIC) is located near Wa Nat Cyaung Village in Hmawbi Township, occupying 126 acres of land. Myanma Awba is providing up to $25 million to finance the HAIC, while the remaining funds have been provided by the International Finance Corporation (IFC).

HAIC will manufacture more than 200 proprietary agrochemical blends which it will distribute at an affordable price to local farmers. This will reduce the cost of production per acre for each farmer. Based on his estimates, a local production plant can help to reduce farmers’ costs up to 20 percent and raise competitiveness. By 2021, HAIC expects to supply around half of Myanmar’s agrochemical demands.

HAIC is aiming to manufacture 3.3 million-10.3 million liters of insecticides, fungicides and herbicides in concentrate form within the next four years. It will also manufacture 1.7 million-5 million kilograms in powder form. Myanma Awba is planning to utilise solar power and greenhouse technology to manage its own production costs and power consumption needs.

The company was established in 1995 and now serves 3.5 million farming families. It also provides microfinance, digitization and logistics services.

Source- Myanmar Times

The very first Thailand-owned plastics industry which worth USD 12 million was opened in Thilawa SEZ on 20^th August with the aim to develop plastics manufacturing industry in Myanmar. The company is joint venture between S.P Petpack Inter Group Myanmar and PTT Global Chemical Public Company. The industry will manufacture quality plastic products which meet international standard by using high-end technology.

Source – Myanma Alin

The Ministry of Industry (MOI) is inviting foreign and local enterprises to invest in the Eco-Industrial Park (Thaton) in Inn Shae Village, Thaton township, which is in Mon State. The park is open to businesses involved in any sector.

Investors interested in setting up facilities at the 400-acre park are required to submit Expressions of Interest (EOI) to No. (3) Heavy Industrial Enterprise, which is under the MOI, by the deadline of September 28.

The Eco-Industrial Park actually replaces a caustic soda plant, which will cease operations. Electricity will be supplied to the park from the Thaton power plant. The MOI is also discussing details of a new solar power plant at the park with Norway’s Energeia Asset Management (EAM). The facility will come under the supervision of the Ministry of Electricity and Energy.

Source – Myanmar Times

Following unchanged operating conditions in June, July survey data indicated the first deterioration in manufacturing performance since September 2017 among manufacturers in Myanmar. Fragile client demand was reflected in falls in output, employment, alongside a second successive decline in new business. “Input prices increased at the fastest pace since January 2017, amid reports from manufacturers citing further shortages of raw materials and unfavourable exchange rates. Output charge inflation also accelerated despite weak demand conditions.

Key points:

• PMI indicates moderate deterioration in manufacturing operating conditions
• Output levels fall for first time in ten months
• Input prices rise at fastest pace since January 2017

Source- IHS Markit

6 State owned factories, including 2 factories in Yangon, are to be sold off according to Ministry of Industry.  The list includes cotton industries, plastics bags industry in Kyauk Se, rubber industry in Thingangyun and LED industry in Mindamma. The Government also plans to privatize its remaining factories since they show billion losses every year. Currently, there are 113 factories under Ministry of Industry and over 50 industries are being rented.

Source – 7 days

Thailand and Myanmar will invest US$5 million to build a water purification plant near Letpadaungtaung copper mining project in Monywa, Sagaing Region, according to the Directorate of Investment and Companies Administration (DICA) in Sagaing Region. The name of Thai company is not disclosed at the moment. Sagaing Region’s DICA supports the plan on construction of water purification plant in that area as the region already needs to get the purified water. This project for the second phase will begin in July. POSCO Daewoo aims to produce gas in Shwe Gas Field beginning in April 2021 and in Shwe Phyu Gas Field beginning in April 2022.

Source – Eleven Media