India and Myanmar signed an important MoU for the appointment of a private Port Operator for the Operation and Maintenance of Sittwe Port, Paletwa Inland Water Terminal and associated facilities included in the Kaladan Multi Model Transit Transport Project in implementation of India’s Act East Policy.

Following this MoU the process of identifying bidders to maintain these facilities will be initiated by floating an RFP. Subsequent to the commencement of operations at this port, it would offer new infrastructure for trade including between India and Myanmar, thereby contributing to job creation and development in the whole region, particularly in the Rakhine and Chin States of Myanmar.

The MoU was signed on behalf of the Government of India by Vijay Gokhale, Foreign Secretary and by U Win Khant, Permanent Secretary, Ministry of Transport and Communications on behalf of the Government of Myanmar. The ceremony was witnessed by U Thant Sin Maung, Union Minister, Ministry of Transport and Communications, and Vikram Misri, Ambassador of India to Myanmar and other officials. Foreign Secretary earlier also called on the Commander in Chief of the Myanmar Defence Services, Senior General Min Aung Hlaing as well as State Counsellor Daw Aung San Suu Kyi.

Source: Daily Eleven

Issuance of re-export sugar licenses with China have been suspended, according to U Aung Htoo, deputy commerce minister. This recent measure comes in light to solve the problem of currency manipulation. However, he added that it’s a temporary decision and will be reconsidered if businesses and foreign currency stabilizes.

In face of this decision, China has stopped buying sugar from Myanmar for a full month. Initially, a bilateral official route trade for rice, sugar and maize was discussed at the end of May, but was cancelled abrupt by the Chinese central government.

Currently, a 20-kilogramme bag of sugar has a price tag of 165 Yuan, which is significantly higher than the previous years. But for some businesses, Ministry of Commerce’s suspension for re-export doesn’t pose trouble for sugar traders due to the decline of foreign currency and virtually no demand from China.

The re-export licenses issuance started in 2015 to promote local trade volume, but it was suspended for piling up re-export sugar in the local market last year. Experts from the sugar industry point out that re-export licenses shouldn’t be issued in the local sugar crushing season. Re-export refined sugar was US$399 million, at the same time, export of local sugar was around US$3.646 million in September 2018, according to the Ministry of Commerce.

Source: Myanmar Times

China offered to invest an international standard industrial zone including food products, pharmaceutical products and garment factory in Bago region, said by government of Bago region.

To invest an international standard industrial zone in Bago, China-based company which is partner with Zillion Trading Co.,Ltd, Zhejiang Chamber of  Commerce and Mr. Tu. Guoding delegation visit to Prime Minister Office of Bago government.

The Prime Minister U Win Thein said that Myanmar is a developing country as welcoming the foreign investment, Bago region is situated at traffic intersections and domestic goods can be easy to distribute and mainly to implement quickly our partner’s industrial zone to identify, the government will support the necessary needs for your measures.

Source: Daily Eleven

Myanmar is using the open door policy which started the reform process and the speed of economic development gradually grew up since U Thein Sein’s administration. Reform process with international assistance, the influx of international investment and the economic growth rate improve to 8.4 percent on 2013. The economic growth rate has gradually declined by the facts that the local flooding incidents, Election period and election monitoring conditions and policy changes of NLD government. The current economic situation of Myanmar being affected by international pressure because of Rakhine struggles. Despite these conditions, Myanmar Times has extracted the five economic sectors that are promising to develop in coming years as follows.

Growth momentum in the telecom sector

On last April, the government’s educational services sector allowed one hundred percent foreign investment in education. After that, the educational services of Singapore, Australia and New Zealand countries increase interest in investing of the education of Burma. As the government allowed foreign investment in educational field, there are already a market that need a high education. On Oxford Business Group Education services report, the government of United States regarded as Burma’s education is the most likely sector to invest in.

The service will be continued to improve banking

Banking sector is also the one that will be improve in 2019. Mainly in the banking infrastructure such as Card Payment System, Mobile Banking Payment and the latest technology called Mobile Wallet are progress in improving. As far as the banking infrastructures improve, the users of these services follows.

Allowed foreign retailers

The retail sector expected to be better part in coming two years, said component members from Myanmar Retailers Association. Ministry of Commerce already approved one hundred percent in the cooperation of wholesale and retail operations with foreign investments and local companies in early of this year. At present, the most developing area of wholesale and retail business sector in the country are leading by Yangon, Mandalay as the second, Magway in Third and Shan State as the last.

Source: Myanmar Times

The Kayin State Border Guard Force (BGF) and Jilin Yatai Group of China launched the Shwe Kokko new city project in Myawady Township in the first week of August over the objections of local residents.

The residents are worried that the project’s gambling houses and entertainment establishments could have a corrupting influence on young people, and that its airport, hotels and shopping centers could harm local businesses.

Jilin Yatai Group was registered with the Ministry of Planning and Finance under the name Myanmar Yatai International Trading Co Ltd in February 2017. In mid-April, ground clearing and fencing work began, said Saw Aung Myo, who lives in Shwe Kokko Myaing, Myawady.

The project, which covers over 2000 acres along the Thaungyin River and will cost an estimated US$15 billion (K23.35 trillion), applied for permission to build from the Myanmar Investment Commission in April 2017 and the state government, according to Colonel Saw Chit Thu of the border guard. Colonel Saw Chit Thu and Myanmar Yatai International Trading Company signed a partnership agreement in September 2017, organised by the China Federation of Overseas Chinese Entrepreneurs, before the plan received permission from the commission. The commission announced that it granted permission for part of the initial phase of the project on July 26 this year, specifically 25.5 acres with a $22.5 million investment. According to figures released by the commission, the border guard contributed 20 percent of total investment.

Source: Myanmar Times

China extended rice contract with Myanmar to September 2020, according to Myanmar Rice Federation (MRF). Both countries agreed to extend the expired Sanitary and Phytosanitary – SPS Protocol to September 2020. Myanmar will continue to export rice to China as per agreement.

Myanmar is not exported broken rice to China as it is still checked by China. Myanmar and China signed the agreement to sell rice to China on September 24 2014.Myanmar signed rice quality inspection agreement with the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ) and cooperation in farming sector and market availability of farming crops with Ministry of Agriculture of China.

Two Chinese ministers said China will give priority to border trade and they assume Yunnan market as export market for Myanmar. Senior officials from Yunnan Province are included in Chinese delegation and Myanmar requested to China to help to ease border trade. Chinese officials said they will help.

The MRF carried out to the ministerial level signing agreement to export rice to China officially in 2014 and it is informed to Ministry of Agriculture, Livestock and Irrigation to extend the agreement which is expired in this month. Ministry of Foreign Affairs and Myanmar embassy in China helped for the agreement.

 Source: Daily Eleven

One Stop Service Centre (OSSC) connecting Myanmar gold with international gold market, providing services on jewelleries and items made from Myanmar gold and importing gold, was opened at Myanmar Culture Valley, People’s Park, Yangon on 25th September.

This will connect Myanmar gold with international gold market. Starting from now, Myanmar gold could be legally sent (exported). Myanmar market and international gold market will be connected. To date, gold from Myanmar was exported under other brands or names to relevant markets. The aim is for Myanmar gold to reach Shanghai, Dubai and all other markets under Myanmar brand and Myanmar letters, said Myanmar Gold Development Public Company Managing Director Dr. Ye Thu Aung.

Myanmar Gold Entrepreneurs Association Chairman U Kyaw Win said, Myanmar has gold resources but it doesn’t have a (gold) market, so it had to depend on other markets. Some were sold at the border at whatever price it can get. Despite having gold resources, it was not used effectively for the people.

According to Myanmar Gold Entrepreneurs Association, gold was illegally exported in the past and government lost much tax income from this. Through implementing the OSSC, it will enable the government to collect more tax from this trade and once foreign investment enters into this sector, foreign exchange can also be earned. The price of gold at OSSC will be based on international market rate and local gold price. It will monitor the import/export of gold and jewellries in the market. Through this, a certain level of control on the market can be made, according to OSSC.

Source: Myanmar Alinn

Natural gas has been discovered at the Shwe Yee Htun-2 appraisal well which is located about 100 kilometers north-west of Pathein Township, Ayeyawady Region, according to the Ministry of Electricity and Energy. The Union Minister of Electricity and Energy, the Ayeyawady Region Chief Minister, the regional minister for electricity, energy and transport and officials inspected the test drilling on September 22nd.

Officials from Myanma Oil and Gas Enterprise, MPRL E&P, Woodside and Total Companies, which are shareholders, explained about the natural gas test drilling processes, according to the Electricity and Energy Ministry.

The Energy Ministry reported that the appraisal well Shwe Yee Htun-2 in offshore block A-6 began drilling on July 20th this year. It reached a depth of 4850 meters (15,912 feet) on August 29th. About 40 meters of thick sandbar was found during the drilling process as well. The process of test drilling and appraisal wells will be carried out on a commercial scale.

The MPRL E&P Company announced that there were a total of five appraisal wells that have been drilled at the offshore Block A-6 of Shwe Yee Htun-2 and natural gas have been discovered in all five wells, which shows great potential for future extracted gas to go commercial.

Source: Daily Eleven