my. camera di commercio italia myanmar

I. MY.
B. C.
weekly articles from:
ANDREA GANELLI - Vicepresidente Camera di Commercio Italia Myanmar
LUCA SAPORITI - Segretario Generale Camera di Commercio Italia Myanmar
SIMONA VIARIZZO - Editor newsletter Camera di Commercio Italia Myanmar
CAMERA DI
COMMERCIO
ITALIA
MYANMAR
21 - 27 MARCH 2016
CREATING
VALUE
G Trading
VALUE
begins inRental
Myanmar’s
first stock e
rates for state-owned
Trading begins in Myanmar’s first stock exchange
s first stock exchange
THE first stock exchange in My-
property need oversight: MP
THE first stock exchange in Myanmar began trading yesterday
with shares of First Myanmar in Myakyuntha Park, a state-owned
RENTALto rates
for state-owned
Investment (FMI) available for property,
The eight companies got 60Max Myanmar
(6.87 (4.15 acres), Good Shan Brothproperty
in Yangon
Region Inya
need ers (7.79 acres) and Rya Ji (1.38 year leases for the plots with a
trading.
acres),
Eden
(4.72 acres),
oversight
as they
lower
than acres), according to a report by the monthly payment of K1 million
Shares of FMI, the first Palace
Co Ltd
(1.83are
acres),
Magic
the rates
in
the
market,
said
MP Yangon Region Hluttaw finance, per acre. The leases began on 1
listed company on the Yangon Land
(13.86 acres), Nay La Pwint
Dawacres),
Aye Myanmar
Aye Mar
during
Stock Exchange (YSX), rose to (2.60
See page 2 >>
Golden
Stara planning and economic committee. April 2013.
parliamentary discussion on the >> From page 1
out that the YCDC vreceived
their highest value for K31,000
Budget Bill in the Yangon Re(US$25.83) per share, closing
According to the report, just K13.8 billion from leases
gion Hluttaw yesterday.
on the first day with total trading
other private companies were of state-owned land plots and
Private companies were al- also granted leases on state- K56.6 billion from state-owned
volume of 112,845 shares, valued
lowed to lease public recreation owned property at low prices apartments this fiscal year.
at K3.498 billion (US$2.908 milareas and state-owned property under long-term contracts.
lion).
Officials from the Yangon
at low prices, said the representaOver 75 per cent of the elecThe report called for rent Region government are schedtive for Lanmadaw Constituency. increases on the state-owned uled to address the report at the
tronic trading was made through
The Yangon City Develop- properties and buildings start- Yangon Region Hluttaw session
the KBZSC Securities Co.
ment Committee leased land plots ing next fiscal year, pointing on 28 March.
People gathered early yesin Myakyuntha Park, a state-owned
terday morning outside KBZSC
property, to Max Myanmar (6.87 (4.15 acres), Good Shan Broth
Securities Co to buy the shares
acres), Eden (4.72 acres), Inya ers (7.79 acres) and Rya Ji (1.38
online, which was conducted sepPalace Co Ltd (1.83 acres), Magic acres), according to a report by the
arately at 11am and 1pm.
Land (13.86 acres), Nay La Pwint Yangon Region Hluttaw finance,
The stock exchange is run
(2.60 acres), Myanmar Golden Star planning and economic committee.
by the Yangon Stock Exchange
Joint-Venture Company, with a
51 per cent stake owned by the
Myanma Economic Bank under
Myanmar’s Finance Ministry and
the remainder by Japanese partGovernment officials and business people pose for documentary photos at the opening of the Yangon Stock Exc
ners.—GNLM
Labour shortage could raise tea prices
I. MY.
A SCARCITY of tea pickers following the flight of thousands of
villagers from Kyaukme, Shan
State, in February could result in
a rise in the price of tea, according to local tea plantation owners.
Conflict between ethnic
armed militias in the area caused
thousands of villagers to flee to
refugee camps earlier this year.
The labour shortage is exacerbated by a large exodus of
workers to China in the hope
of finding better employment
opportunities, according to tea
plantation owners and internally
displaced villagers from Nyaung
B. C.
ITALIA
MYANMAR
BUSINESS
COUNCIL
Maung Village.
“Tea plantation workers are
so scarce this year. We’ve had
to go door-to-door pleading with
people to come and work our tea
crops. People are scattered all
over the place from the fighting.
There are lots of people who’ve
left to find work elsewhere, leaving behind nobody to pick tea,”
said U Sai Kyaw Yi, a tea plantation owner from Maing Ngaw
Township.
The number of tea pickers
in Kyaukme Township fell from
a workforce of 4,000 in 2015 to
half that number this year.
Corso Re Umberto, 8
10121 – Torino
ITALY
The current market value of
tea is normal, but this could rise
in the near future as a shortage of
workers has caused the wages of
tea pickers to increase.
“You can see the anxiety on
the faces of those called to pick
tea. They’ve only gone because
the tea plantation owners have
come to get them personally.
There are far fewer tea pickers
now than in previous years,” said
U Chan Thar, a trader of Wah
Yint tea.
The township of Kyaukme
features 25 large-scale and smallscale tea wholesalers, which are
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
frequented by tea sellers from
villages in the northern Shan
State towns of Hukwet, Pankhun,
Panthapyay, Maing Ngaw, Naunglaing and Lwayhsar.
The current value of a viss
(1.63 kilos) of high-quality dried
tea leaves fetches K6,000; the
same quantity of rough, wet leaves
goes for K1,600, and medium
quality leaves sell for K2,000. A
tical of high-quality tea buds is currently being sold at a market price
of K3,600, according to traders of
the Wah Hso tea variety, which is
grown in Kyaukme Township.—
Myitmakha News Agency
21 - 27 MARCH 2016
Cultivation of substitute crops yet to be
realised in Naypyidaw
m to sign
en against
be caught
types of
muscular
istered by
e; and the
Artesunate.
aton FDA,
ine tablets
1 million.
THE cultivation of substitute
crops on five thousands acres of
land within the compound of the
Naypyidaw Union Council is yet
to be realized, according to the
Naypyidaw Department of Agriculture. It is known that the acres
of land cannot be used for the cultivation of summer paddy harvest
as the area lacks irrigation.
“Come the last week of
March and we’ll be able to irrigate
the fields. A lack of rain water [last
year] resulted in an insufficient
water supply for the irrigation of
crops which means a late harvest.
We experience [this problem] ever
year.” said U Tin Soe Kyaing, regional head of the Naypyidaw
Department of Agriculture. The
irrigation of water will commence
during the last week of March, al-
lowing for substitute crops to be
cultivated on the 5,000 acres land
during the first week of April.
“The bringing in of water
through irrigation channels will
roughly coincide with the Thingyan rains so we’ll only be able to
plant summer sesame and mung
beans. The majority of substitute
crops are planted on land owned
by the Myanmar Armed Forces
and that located in the township of lewe.” added U Tin Soe
Kyaing. A lack of rainfall during
2015 meant that over 5,000 acres
of arable land for paddy within
Naypyidaw could not be irrigated. As a result, the Naypyidaw
Department of Agriculture has
anticipated the 2,000 acres of
summer sesame and 3,000 acres
of mung beans be planted as sub-
AIA Plans to Extend Market
AIA, regarded as the biggest insurance company in Asia, will
venture to extend its business in
the Myanmar market, according
to its announcement.
AIA has opened a branch
office in Yangon. It will apply
for a licence from the Insurance
Business Supervisory Board and
has announced that it will grant
licences for foreign insurance
businesses, which opened an office in Myanmar at least three
years ago with a background
history doing the same business
within the ASEAN region.
AIA will operate the insurance business related to the stock
exchange. Besides, it will collect
and buy the treasury bonds as
long-term investments.
It is time to extend the business in Myanmar, said Mark
Tucker, CEO and president of
AIA Group. Myanmar conducted
I. MY.
B. C.
the reformation process both in
politics and economics. Currently, foreign investment companies
and financial service companies
are competing enter the Myanmar market, and we are one of
them, he added.
ITALIA
AIA has already been makingMYANMAR
capital investments in Thailand, buying Thai treasury bonds
BUSINESS
equal
to 20 per cent of government debt. The stock exchange,
COUNCIL
the legal investment business,
will thrive in Myanmar, which
has lost its firm capital business
for many years. Many foreign investment companies like AIA are
preparing for extending in Myanmar because the country sees increasing financial development,
the probability of thumping foreign investment and good conditions in the economic sector,
according to some economists.—
PPN (Union Daily)
Corso Re Umberto, 8
10121 – Torino
ITALY
stitute crops.
“[Paddy] can’t be planted
on land that hasn’t been irrigated because it would be too dry.
We’ve already tilled the land for
the planting of summer sesame. If
the land can be irrigated then we
will just plant a surplus [of paddy].
We can only plant [paddy] if the
land can be irrigated. If we had to
irrigate it under our own initiative
then it wouldn’t be cost-effective
for the amount of petrol costs that
would be incurred.” said U Maung
Win, a farmland owner from lewe
township.
It is known an acre of land
within the Naypyidaw Council compound in 2015 produced
11.16 bushels of summer sesame
and 23.2 bushels of mung beans.
— Myitmakha News Agency
Income, commercial taxes
to be paid by March
THE Internal Revenue Department has announced that income
taxes and commercial taxes will
be paid by March this fiscal year,
according to the Union Tax Law.
Those who fail to pay in on
time will be fined according to
the Law.
Cash is to be submitted by 31
March, while paying by cheque
must be done before 31 March,
according to the Internal Revenue Department. The Central
Bank will receive the cheques
by 11:30am on 31 March and
make settlements. That’s why
Myanmar Economic Banks will
receive cheques by 30 March,
said the Director of the Internal
Revenue Department (Yangon).
Those individuals who are
listed at the top and those companies which are top listed will be
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
announced by the Internal Revenue Department, according to the
state-owned daily newspaper.
The companies in the oil and
gas sector and the banks stay at
the top of the list, followed by
the wholesales shops and super
markets.
Government revenue is still
on the decline because of the
high exchange rate of the US dollar, although the amount of tax
received has risen, according to
economists.
The revenue reached 10 per
cent of GDP during the fiveyear term of the government.
However, it is still on the decline compared with other ASEAN countries. The high revenue can lift subsidies for health
and education of the people.
—KMK (Union Daily)
21 - 27 MARCH 2016
Mineral exports decline in
2015-16 Fiscal Year
MYANMAR
earned
over
US$950 million from exports of
mineral extractions, including
jade, this financial year, which
is about one fold less than the
country earned during the same
period last FY, according to the
Ministry of Commerce.
Between 1 April 2015 and
11 March this year, the private
and public sectors earned $445.8
million and $505 million respectively, compared to last year’s
$979.875 million in the public
sector and over $459 million in
the private sector.
The public sector saw a drop
while the private sector saw a
rise in mineral exports, said a
spokesperson of the ministry.
The country normally receives a vast amount of foreign
currency from jade exports, a
major mineral export, and China is the largest trade partner for
Myanmar, followed by Hong
Kong and India.
The private sector mainly
exports agriculture products, aquaculture products and animal
products.
The government sector
mainly carries out exports for the
rest groups, including mineral
products, forest products and industrial finished goods.
The Ministry of Mines’
scrutinising and supervising
committee for mining licences
allows private mining companies owned by citizens in the
Mongshu, Namyarseik, Kandi,
Mohnyin, Mawlu and Mawhan
areas in accordance with existing
laws.—ML/Union Daily
State-owned agricultural bank to
increase loans to rice farmers
Aviation
Services
Delivers
I. MY.
THE Myanmar Agricultural De- Dekkhinathiri Township yestervelopment Bank has announced day.
plans to increase the availability
The Myanmar Agriculturof agricultural loans to riceITALIA
farm- al Development Bank delivers
ers as part of its concerted efforts K100,000 per acre to rice farmMYANMAR
to assist the country’s rice
pro- ers, an increase from the previous
duction, said Union Minister
for K50,000 that was offered in 2012.
BUSINESS
Agriculture and Irrigation U MyThe bank at this time has
COUNCIL
int Hlaing yesterday.
a nationwide network comThe Union minister an- prising 14 regional offices, 169
nounced and spoke about the branches and 44 agency officplan at a meeting with farmers es with 3,357 staff providing
gathering at a pollination event short term and long term credheld at a 100-acre field for the it to over 2 million farmers.
production of rice seeds in —GNLM
B. C.
Corso Re Umberto, 8
10121 – Torino
ITALY
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
Japanese
businessmen
buy Myanmar
breadfruit
BREADFRUIT (Artocerpus altilis) is gaining popularity among
Japanese businessmen because of
its alleged medicinal properties.
Some believe it brings prosperity
to those who eat it.
“Japanese buyers buy tonnes
of breadfruit powder because they
believe it can alleviate obesity. The
fruit can also be cooked with pork
to make a delicious dish. This fruit
is similar to jackfruit, but it is more
delicious than jackfruit. Japanese
businessmen came to the farm and
advised the farmers to grow more,”
said U Han Zaw Myint, a breadfruit researcher.
Breadfruits with seeds, which
are rarer, are said to have greater
medicinal properties than those
without. Breadfruit trees tend to
grow less than 2,000 feet above the
sea level in places with high rainfall. They grow well in equatorial
climates. It originated in the South
Pacific before spreading to the rest
of Oceania and beyond.
Some foreign-owned hotels
grow breadfruit trees as decorations. They have been cultivated
in Myanmar just in the last three
years. The fruit can be used as an
animal feed and grows on shady
trees.—200
21 - 27 MARCH 2016
Thilawa SEZ gets 50 MW gas-fuelled power station
THE Ministry of Electric Power
opened a gas-fuelled power station in the Thilawa Special Economic Zone in the south of Yangon Region, with an address by
the Union minister.
In his speech, U Khin Maung
Soe said the ministry spent millions of foreign and local currencies on the construction of
power plants across the nation as
demand for electricity has risen
sharply due to the emergence of
economic zones.
The country’s electricity generation rose from 3,413
MW in 2010-11 to 5,235 MW in
2015-16, the Union minister said,
stressing plans for the speedy
completion of ten power projects
so as to generate an additional
2,042 MW.
According to him, Thailand
boasts a capacity to generate
34,000 MW of electricity, with
27,000 MW in use and 7,000
MW in reserve.
Failure to implement new
power projects will undermine
the industrial development in the
country, whose current power
distribution stood at 2,700 MW.
Yangon Region is expected
to consume 1,250 MW of electricity this year, compared with
its use of 1,050 MW, even in the
hottest season last year.
The Japanese ambassador to
Myanmar gave a brief on the construction of the Thilawa 50 MW
gas fired power plant.
After unveiling the plaque to
the power plant, Union Minister
U Khin Maung Soe and Yangon
Region Chief Minister U Myint
Swe inspected the machinery installed at the facility.
The power plant was constructed at a cost of over 3.7 billion Japanese yen, loaned by the
Japan International Cooperation
Agency (JICA). The plant will
use 15 million cubic feet of gas
per day, supplied by the Zawtika
offshore gas project. According
to the ministry, the country borrowed US$1.69 billion from international monetary institutions,
including the World Bank, of
which the government has used
over $103 million, with $1.5
billion remaining untouched.
—Myanmar News Agency
Plans under way to finalise ewel
regulations before Thingyan
China donates electrical
e uipment to ood-hit areas
THE Myanmar Gems and Jewellery Entrepreneurs Association is planning to finalise the
rules and regulations for jewel
in cooperation with the Ministry
of Mines.
The Jewellery Law came
into effect in 1995, but it has
been without its rules and regulations for more than two decades.
“We will draw up the rules
and regulations of the Jewellery
Law before Thingyan festival.
We are discussing the prospects
of legal permission for the export of gold and diamond,” said
U Tun Hla Aung, CEO of Myanmar Gems and Jewellery Entrepreneurs Association.
CHINA donated electrical e uipment worth 36 million yuans in
an effort to restore electricity to
ood-hit areas in Myanmar yesterday.
During a donation ceremony
in Nay Pyi Taw, Chinese Ambassador to Myanmar Mr Hong
Liang handed over documents
related to the electrical e uipment
to Union Minister for Electric
Power U Khin Maung Soe.
In his speech at the event,
the Union minister thanked the
National Development and Reform Commission and the National Energy Administration of
the People’s Republic of China
for their uick response to Myanmar’s re uests for aid in ood-affected areas.
I. MY.
B. C.
“In addition, we need to
find new markets .”
The ministry is planning to
reduce taxes by 25 per cent for
every export of unrefined jewels. Under the Jewellery Law, a
30% tax is collected for exports
ITALIA
of unrefined
jewel.
Reduced tax will promote
MYANMAR
gem trade, U Tun Hla Aung
BUSINESS
said,
adding that the new regulations
will allow gem exhibiCOUNCIL
tions to be held in border areas.
Currently, South Korea and
China are ranked the biggest
buyers of the country’s jewels.
Myanmar’s gems are put on
sales at both international and
domestic exhibitions.—MPPS/
Union Daily
Corso Re Umberto, 8
10121 – Torino
ITALY
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
Work is underway to restore
electricity in those areas following the arrival of the Chinese donations on 21 March, added the
Union minister.
In his address, the Chinese
ambassador elaborated on the
ongoing cooperation between the
two countries. The Chinese donation includes an 11 KV power
line and related parts, a 389-km
insulated power line and related
parts, a 20 MVA transformer and
primary and secondary parts for a
Kalay sub-power station and 204
200KVA transformers.
The electrical e uipment
will be put to use in ood-affected areas in Sagaing and Magway
regions and in Rakhine and Chin
states.—Myanmar News Agency
wning
sed
nal
om
nd-
in
wnble
ure
are
and
Min
a
ers
but
hin
osts
deulty
uce
ay.
per
Tin
21 - 27 MARCH 2016
Farmers grow crops in discarded water
bottles to save water
FARMERS in water-scarce villages in Taungtha Township are
now growing crops in discarded
drinking water bottle instead of
on plot of lands, allowing them
to grow their own food and sell
some surplus stock.
The farmers learned the
Italian farming method from the
Livelihoods and Food Security
(LIFT) Fund. They punch out
the bottom of one bottle which
is hinged to the top of another.
Compost is put inside the bottle, and water is dripped into the
bottle. Two plants can be grown
in a bottle, and there are a total of nine bottles in a row. The
rows are eight inches apart. Only
drops of water are supplied by
the overhead water tank. Smoked
paddy husk is used as compost
and only needs to be changed
only once a year.
The method is used
to preserve scarce water.
—Lin Lae Kyaie (Taungtha)
Mat producers in Inwa seeing handsome profits
THE demand for hand-woven
mats from Inwa has reportedly been growing rapidly as the
warmer weather
takes
effect
THE demand
for hand-woven
across the country.
ly been growing rapidly as the
The traditional-mats
warmer weather takesare
effect
made from thin reed, a materiThe traditional-mats are
al favoured for its lightness and availability. al favoured for its lightness and
“Our workers
currently
“Our are
workers
are currently
happy are
as they
are earning
quite happy quite
as they
earning
between K4,000 and K6,000
between K4,000 and K6,000 per day”, said a local mat manITALIA
Thin reed products
are
ufacturer. mainly
supplied by producers
MYANMAR
Thin reed products are
tanaw
in
Ayeyawaddy
Division
mainly supplied by producers
BUSINESS
but thin mat manufacturers
are
in Kachin State
wellPantanaw
as Pan-reed
using as
mostly
COUNCIL
tanaw in Ayeyawaddy Division
but thin matfacturing
manufacturers
is a lucrativeare
home
business.
The demand
using mostly
Pantanaw
reed for
products. ways higher in summer, it hasbeen learnedand
from producers.—
Mat weaving
manufacturing is a lucrative home
business. The demand for
hot-weather friendly mats is always higher in summer, it has
been learned from producers.—
Tein Taman
I. MY.
B. C.
Corso Re Umberto, 8
10121 – Torino
ITALY
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
21 - 27 MARCH 2016
Yangon radar station slated for completion this July
d U Than
g roughly
per day”,
-
April is the
fishermen
fetching a
A METEOROLOGICAL radar
station is being installed in the
compound of the Department of
Meteorology and Hydrology in
Yangon. The station is slated for
completion this July, according to
a official f o t
at
t.
The radar station in Mayangon Township is expected to be
fully established in the middle
of this year, said department director U Kyaw Lwin Oo, adding
that more accurate and detailed
weather information will be accessible upon completion of the
station.
The construction of the
18-storey radar station began in
September 2014.
The construction of another
radar station in Chanmyathazi
Township, Mandalay, is also slated for completion in 2017.
Moreover, a radar station in
Kyaukpru Township, Rakhine
State, was completed in August
2015. The establishment of the
three radar stations in Myanmar,
which are worth an estimated
amount of US$38.4 million, is bei fi a c
t
a a
t ational Cooperation Agency (JICA).
In addition to radar stations, automatic weather survey
machines worth an estimated
amount of $2.3 million are set
to be installed at 30 weather
ITALIA
stations, said the department.
—Ko Moe MYANMAR
I. MY.
BUSINESS
COUNCIL
Roho
B.
C.labeo reaches 200,000 metric tonnes
exported over 2015-2016 FY
ROHO labeo exports reached nearly 200,000 metric tonnes this fiscal
year, said U Han Tun, vice chairman of Myanmar Fishery Federation (MFF).
There are two types of export on the market; fish bodies and
scraped fish. Myanmar exported
Corso Re Umberto, 8
10121 – Torino
ITALY
70,000 metric tonnes of roho labeo
to the Asia region market and
around 30,000 metric tonnes to the
Europe market making a total of
100,000 metric tonnes last year. A
total of 200,000 metric tonnes have
been exported this year.
“We have managed to double
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
the export this year due to higher
demand on the foreign market. We
mainly import into the European
market which prefers scraped fish
than fish bodies”, he added. The
MFF is also planning to expand
to fish farming up to 2000 acres of
farm for roho labeo this year.—200
21 - 27 MARCH 2016
Sugar re-export on the rise
Aung Thant Khaing
SUGAR re-export is on the rise
again , a change noted since 20
March. Myanmar legally re-exports imported sugar from India
and Thailand to China via two
routes: The Tamu-Monywa-Mandalay-Muse route and the Kawthaung-Yangon-Mandalay-Muse
route, according to Mandalay
Sugar commodity depot.
The price of suger per viss
(approximately 1.6 kilograms)
fell from around K1200 to around
K1060 between 9 and 18 February. The price rose a little bit,
according to sources, to K10701090 on 21 March. The price of
re-export is K 20-30 higher than
locally refined sugar.
“This is the high sugar yield
season in Thailand. The price has
dropped down due to the low de-
mand from China. We re-export
the sugar to China by purchasing
the produce from Thai and India
because local sugar does not meet
export quality, said U Htay from
the Mandalay sugar commodity
depot.
Great-Wall sugar and Pale
sugar produced in Myanmar are
of export quality and so exported to China in small batches.
Sugar produced in Thailand and
India can meet export quality on
a much larger scale as they use
more advanced refining techniques. Most of the sugar produced in the country has local
market interest only.
The price of sugar depends
on both the exchange rate and the
demand from China. Usually, the
price declines when demand is
low. Now the price has risen, said
Ko Ye Min Aung, a Tine Kyaw
Cross-border trade increases
US$500 million this Fiscal Year
I. MY.
THE volume of trade conducted
at Myanmar’s offical cross-border trade points with its regional
neighbours has seen an increase
of US$500 million over the last
Fiscal Year according to official
figures released by the Ministry
of Commerce.
Up to 11 March this year
the total volume of cross-border trade has reached US$6.56
billion, including $4.15 billion
coming from imports and $2.4
B. C.
ITALIA
billion resulting from exports.
MYANMAR
This number, according to
theBUSINESS
figures, is higher than duringCOUNCIL
the same period last fiscal
year. The country earned $6.14
billion from cross-border trade
over the 2014-2015 FY.
Muse, located in northern
Shan State is a border town between Myanmar and China and
is the biggest trade camp of its
kinds in Myanmar.—NG/Union
Daily
Corso Re Umberto, 8
10121 – Torino
ITALY
sugar mill owner.
Sugar mill owners purchase
the sugarcane from Ngar-oe,
Myataung, Maungkon, Moehtar,
Kyaukhtonegyi and Innywar. They
produce sugar mainly for the local
market as Myanmar sugar does
not look appealing. Myanmar also
lacks advanced refining machinery. Sugar manufactures from other nations make sugar directly from
sugar cane. In Myanmar, however,
the sugarcane is crushed for juice
and it is from the liquid that the
sugar is produced.
Transportation float between
K70 to K100 per viss due to Mandalay-Muse road traffic jams. A
bag of sugar weighing 50 kilogram sells for Yuan 200. The unstable Yuan exchange rate, high
transportation charges and taxes
are the main causes of current
low profit in the industry.
Animal-feed plant to be established
within Myotha Industrial Park
AN animal feed plant is currently being constructed within the
Myotha Industrial Park project
in Myingyan Township, Mandalay Region, according to the
regional government.
The construction of the new
factory was initiated on 17 acres
of land within the industrial park.
The Myotha Industrial Park
has been developed and run by
the Mandalay Region Government and Mandalay Myotha
Industrial Development Public
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
Co. It will be a mixed use industrial park covering over 10,000
acres. Plans are afoot to open
the park soon.
“A garment factory and
related businesses will also be
established on over 2,000 acres
of land within the project area,”
said a spokesperson from the
Mandalay Region Government.
Currently,
construction
companies are in negotiation
with landowners, one of project
implementers said.—200
21 - 27 MARCH 2016
European investment in Myanmar rises
INVESTMENT from European
countries in Myanmar has increased since last fiscal year, according to the Myanmar Investment Commission.
Investment from European
countries reached nearly US$6
billion between April and February this fiscal year, followed
by the UK ($4.073 billion), the
Netherlands ($989 million),
France ($541 million), Luxembourg ($45 million), Switzerland
($14 million) and Norway ($11
million).
Up to the end of February
in the 2015-16 fiscal year, China
topped the lists of foreign countries with investments in Myanmar. It stands first with over
US$15 billion of investments in
126 projects, which have been
developed from 1985 to 2015,
followed by Singapore, with over
$12 billion in 199 projects.
Foreign direct investment
from 43 countries has come into
Myanmar, most of it into the coun-
try’s oil and gas sector. The sector
has attracted $19 billion into 151
projects, followed by the energy
sector with $19 billion investment.
According to the Directorate
of Investment and Company Administration under the Ministry of
National Planning and Economic
Development, Myanmar has received a total of over $23.84 billion in foreign direct investment
between the 2011-2012 fiscal
year and the 2015-2016 fiscal
year.—NG/Union Daily
Mandalay
industrial zones
to get wastewater
treatment plant
Aung Thant Khaing
THERE will be no environmental effect by the industrial wastewater released from the Mandalay industrial zones following
the completion of a wastewater
treatment plant, according to
an official from Mandalay City
Development Committee.
Industrial wastewater must
be treated at the plant before it
is released into the Dokhtawady
River, said U Thet Naing Tun,
MCDC’s joint secretary.
His comment appeared after pictures of wastewater being
released into the Dokhtawady
River appeared on Facebook.
Pipelines carrying wastewater toward the river were
helpful in eliminating bad
odours caused by the presence
of wastewater in the zones over
the last two years, said the city
I. MY.
B. C.
official, adding that treated
industrial effluent can be discharged into the river once the
plant, which is under construction, becomes operational.
The plant is designated to
treat wastewater from factories
andITALIA
plants as they are unable
to create
their own plans to
MYANMAR
carry out the wastewater treatBUSINESS
ment
process, said U Tun Kyi,
a Mandalay
City Development
COUNCIL
Committee member.
Construction on the wastewater treatment facility began
in Amrapura Township on 16
March following an agreement
in 2013 between MCDC and
Hydrotek Supreme Mandalay
Co Ltd.
The plant is slated for
completion within the next two
years, and it is set to undergo
a Build, Operate and Transfer
(BOT) process.
Corso Re Umberto, 8
10121 – Torino
ITALY
Kirin Ichiban
Mandalay
beer coming
toindustrial
Myanmar
this
to month
get was
treatment
JAPANESE beverage manufacturer Kirin Holdings will distribute its
products in the Myanmar market
beginning this month, according to
a company spokesperson.
Kirin Holdings will produce
its beer at a factory owned by Myanmar Brewery.
Initially, the Kirin will distribute Kirin Ichiban beer mainly
to Japanese restaurants and other
restaurants. Then, it will distribute
to retail outlets, supermarkets and
minimarkets, with plans to sell beer
at a price of US$2.60 per bottle.
A bottle of Myanmar Beer costs
around $1.20.
Kirin Ichiban is the best-selling beer in Japan. In 2015, Kirin
sold 5.42 million packages of beer.
Kirin Holdings has decided to
distribute its products in Myanmar
as other international beer companies eye the Myanmar market and
its rising middle-age population.
Myanmar Brewery holds
about 80 per cent of the local beer
market.—PPN/Union Daily
Palm oil price rises
THE price of imported palm oil
is currently high as the yield of
palm tree oil has declined due
to the effects of El Nino. Palm
oil per FOB tonne is expected
to usually get around $650 between end of February and second week of March. The price
rise has seen it get up to $690
(K1565) as of 21 March.
The landed cost price of imported palm oil is around K1480
per viss (aprox. 1.6 kilograms)
between the end of February
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
and the second week of March.
Wholesale price of palm
oil per viss at Yangon Market
is around K1585 and the retail price is K1605, it has been
learned from brokers.
A company distributing
directly from Bayintnaung sold
out their palm oil at a wholesale
price of K1505 as of the second
week of March. The company
halted sales in the third week,
said a merchant from a township in Yangon.—Khin Saing
21 - 27 MARCH 2016
United Kingdom tops list of EU-Myanmar investment
THE United Kingdom tops the
list of European member states
making investments in Myanmar according to the Myanmar
Investment Commission.
The UK stands first with
over 4 billion US dollars invested followed by the Netherlands
($989 million), France ($541m),
Luxemburg ($45m), Switzerland
($14m) and Norway ($11m).
Investment from European
countries in Myanmar has significantly increased over the past
11 months.
Between April and February of this fiscal year investment
from EU countries reached nearly $6 billion.
Among over 40 foreign investors China stands first with
over US$15 billion worth of investment followed by Singapore
with over $12 billion.
So far foreign direct investment from 43 countries
world wide has come into Myanmar, most of which went into
the country’s oil and gas sector
which attracted over $19 billion
into 151 development projects.
The next biggest was the energy
sector securing $19 billion in investment.
Myanmar has received a
total of over $23.84 billion in
foreign direct investment between the 2011-2012 FY and the
2015-2016 FY, according to the
Directorate of Investment and
Company Administration.—NG/
Union Daily
Kaung Myanmar Aung Shipping Co Ltd wins wharf project in SeikkanTsp
MYANMA Port Authority announced yesterday that Kaung
Myanmar Aung Shipping Co Ltd
won the tender to build a modern
wharf and supporting facilities in
Seikkan Township.
The project which would be
I. MY.
implemented with the Build, Operate and Transfer-BOT system is
located between the Botahtaung
Pagoda and Bo Aung Kyaw jetty.
On completion, the wharf
can handle two 15,000-ton vessels, providing wharf services to
ITALIA
MYANMAR
inBUSINESS
Pindaya
COUNCIL
Coffee farmers
B. C.
earn higher incomes
COFFEE farmers in Ywa Ngan
village, Pindaya Township,
have come to earn more incomes as a result of rising prices
in coffee.
The price for coffee seeds
have reached K3,000 a viss, up
from K1,000 in the past, said local farmer Ko Zaw Oo.
NGOs provide seeds for
villagers to grow a variety of
crops and vegetables including
tea, coffee, carrot, pumpkin,
gourd and aubergine. And they
purchase agricultural produce
from local farmers. Currently, these produce, for instance,
coffee, have made inroads into
domestic and foreign markets,
mainly in Thailand.—200
Corso Re Umberto, 8
10121 – Torino
ITALY
improve the State’s export and
import handling, according to the
announcement.
The announcement stated that
the construction with permission
of the Myanmar Investment Commission would use bore piles in
order not to affect the Botahtaung
Pagoda.
Besides, the other facilities
would be constructed with the
permission of the Yangon City
Development Committee, said the
statement.—GNLM
Chinese motorbikes sell well in
Lashio, northern Shan State
CHINESE-MADE JJ-XY motorbikes with power exhaust installed are selling well in Lashio, northern Shan State.
Motorbike prices range between K285,000 and K620,000
per motorbike, depending on
the brand.
The JJ-XY-125 model is
selling best at the moment. Its
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
LED headlight attracts young
people in the city.
“Market prices do not drop
too low, though Chinese currency
is unstable, because local traders
manipulate the market price,”
said a motorbike dealer in Lashio.
JJ-XY and NANO motorbikes are popular Chinese
brands.—200
21 - 27 MARCH 2016
Implementation of Maingwa
hydropower plant project signed
Department and U Kyi Myint,
A CONTRACT
signing
cerdirector
of the company,
signed
emony
concerning
the
implethe contract in the presence
of thefor Maingwa
ofmentation
Union Minister
Electric
hydropower
in Soe
Mongla,
Power
U Khinplant
Maung
and
Shan State
was held
officials.
In (East)
his address,
thein
Nay
Pyi
Taw
yesterday.
Union minister stressed the need
The Ministry
of Electric
for providing
local people
in the
Power
andthe
Shan
State East
Deregion
with
necessary
assisvelopment
Company
Limited
tance and making sure of strict
inked the deal to implement the
adherence
to the Environmental
project for electricity generation of 66 magawatts under the
Built, Operate, Transfer (BOT)
scheme. The hydropower plant
is set to be built across Nantlway creek in Mongla, Shan
State (East).
During the ceremony, Director-General U Aye Hsan of
Hydropower Implementation
Department and U Kyi Myint,
director of the company, signed
the contract in the presence
of Union Minister for Electric
Power U Khin Maung Soe and
officials. In his address, the
Union minister stressed the need
for providing local people in the
region with the necessary assistance and making sure of strict
adherence to the Environmental
Conservation Law. He further
spoke on taking steps in minimizing the environmental and social
impacts of hydroelectric power.—Myanmar News Agency
THE VPower Group signed two
power agreements with the stateowned Myanma Electric Power
Enterprise on 11 March in Nay
Pyi Taw.
The company won the two
power generation projects in October 2015. One is the extension of a
gas plant in the Kyaukpru Special
Economic Zone, and the other is in
Myingyan, near Mandalay.
The Kyaukpru Phase-2 power plant will double the plant’s
gas plant in the Kyaukpru Special power generation capacity to 90
Economic Zone, and the other is in MW by the summer of 2016. The
Director-General U Aye Hsan of Hydropower Implementation
Department
additional
power will also feed
and U Kyi Myint, Director
ofKyaukpru
Shan StatePhase-2
East Development
Co exchange
the existing 230kV transThe
pow- directly
notes.
er plant will double the plant’s mission network, like the Phase-1
power generation capacity to 90 power plant.
MW by the summer of 2016. The
The original turnkey faciliadditional power will also feed ty was installed in just 120 days,
directly the existing 230kV trans- providing enough power to serve
mission network, like the Phase-1 more than six million people.—
GNLM
Latest Volvo cars coming soon
I. MY.
THE latest Volvo cars will be
sold in Myanmar very soon.
Performance Auto International Co Ltd (PAI), the joint venture between Volvo Car Group
and the two companies owned by
Myanmar, has been appointed as
sole agent for Sweden-made Volvo cars, following the signing of
the agreement at Hotel Novotel
on 18 March.
“We are excited about representing Volvo in Myanmar, said
Mr Temmy Wiradjaja, the general manager of PAI Co Ltd. We
promise to provide the customers
with the excellent experience of
B. C.
VPower signs
two power
agreements
Volvo cars,” he added.
ITALIA
The Volvo Car Centre will
be opened
in September at No
MYANMAR
146(a) Dhammazedi Street, Yangon.BUSINESS
Official Volvo Centres will
THE
VPowerinGroup
signed
two
also
be opened
Siri Lanka
and
COUNCIL
power
agreements
with
the
stateVietnam.
owned
Electric Power
VolvoMyanma
was established
in
Enterprise
on
11
March
in Nay
1927 and has become
the most
popular brand in about 100 counwonarethe
two
tries asThe
overcompany
500,000 cars
sold
every year. Various luxury cars
with international brands have
penetrated Myanmar’s imported car market since the relaxation of the Import Law in 2013.
—Win Win Maw
Corso Re Umberto, 8
10121 – Torino
ITALY
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
The sig
Enterp
ty was
provid
more t
GNLM
21 - 27 MARCH 2016
FDI expected to reach $7 billion in 2015-16 FY
THE Myanmar Investment Commission expects foreign direct
investment in Myanmar to reach
around US$7 billion this financial year.
Up to the end of February,
FDI in Myanamr amounted to
$6.01 billion; roughly$2 billion
of the investment went into the
country’s oil and gas sector.
“This financial year, FDI is
estimated to reach US$7 billion,
rrent
ector
ects.
d a
and
mainly into the oil and gas sector,
telecommunications and manufacturing,” said U Aung Naing
Oo, secretary of the MIC.
The MIC estimates that the
manufacturing sector is likely to
receive more FDI in the coming
years because of the development
of the country’s special economic
zone projects.
U Aung Naing Oo said: “We
put more effort into enacting two
Local real estate market to become
active again soon: experts
DOMESTIC property agents pected to stay above the rate of
have claimed that the current normal fees in future.”
cooling of the real estate marCurrently,
construction
ket in Yangon can be expected companies and investors are
to reverse within the next six monitoring the market situation
months.
which is expected to see eight
According to experts, di- per cent growth this year, acrect foreign investment is likely cording to the property website
to flow into the domestic market House.com.mm.
when the next government takes
The country’s property marpower.
ket has boomed in recent years
“Aside from land and rental causing room, house, land and
properties, the rest of the market
apartment prices to skyrocket.
ITALIA
is experiencing a slow down,” Owing to low demand, the marone real estate agent said.MYANMAR
“Lo- ket has been on the decline since
BUSINESS
cal property rental fees are ex- late 2014.—ML/Union Daily
I. MY.
B. C.
COUNCIL
Corso Re Umberto, 8
10121 – Torino
ITALY
phone: +39 011 506 1611
e-mail: [email protected]
site: www.imybc.it
important laws to help develop
the country’s economic sector.
To improve local small and medium enterprises, the country needs
to promote its legal framework
and economic policies to attract
investors.”
Myanmar has received over
$23 billion in foreign direct investment between the 2011-2012
fiscal year and the 2015-2016 fiscal year.—PPN/Union Daily
Traditional weaving
industry in Salin
brings employment
LOOM weavers in Salin Township, Minbu District are seeing
higher income due to increased
demand for their traditional
hand-woven clothes, mostly from
Mandalay, Yangon and surrounding areas.
“I studied how to weave in
Seikkan village, Shwebo Township in order to gain a profitable
skillset as there were no secure
jobs in our village. Now we are
running 15 loom machines and
business is good”, said U Min
Naing Htwe, establisher of a
weaving business.
Locally employed weavers
produce a range of garments but
particularly traditional Kachin
dresses. Each set of clothing costs
between K4,500 and K30,000 depending on design and difficulty
of production.
“Generally we can produce
between 15-20 dresses per day.
We supply more than 500 per
week to market” he added.—Tin
Htun Oo