Posts in category: INVESTMENT

Foreign investors have bought more than 4502,600 shares of the four companies in the past 10 months, allowing foreigners to buy shares in companies listed on the Yangon Stock Exchange, according to figures released by the Yangon Stock Exchange. Starting from March 20, 2020, foreigners, Foreign organizations were allowed to buy shares in the Yangon Stock Exchange. As of January 27, 2021, 4502,679 shares were purchased from four of the six companies listed on the Yangon Stock Exchange. The number of shares purchased by each company is 4458,136 shares in First Myanmar Investment Company Limited (FMI); 31973 at Thilawa AS Isaac Holdings Public Limited (MTSH); 7,125 at Ever Flow River Group Public Co., Ltd; 5445 at TMH Telecom Public Co., Ltd. Yangon Stock Exchange (YSX) List of companies that want to invest in shares of companies listed on the Yangon Stock Exchange (YSX). 

Ministry of Finance and Industry The Securities and Exchange Commission issued a notification No. (4/2020). The Securities and Exchange Commission of Myanmar (SEC) has issued Notification No. (1/2019) and Directive No. (1/2020) and allowed foreigners to participate in the daily trading of shares of companies listed on the Yangon Stock Exchange. According to Article 3 (c) of Directive (1/2020), foreigners (including individuals and organizations) wishing to invest must first visit a securities company and obtain a letter of recommendation.  After that, Resident Kyat Account for Securities (R-KAS) for domestic residents and Non Resident Kyat Account for Securities (N-KAS) and Non-resident Foreign Currency Account for Securities (N-FAS) accounts can only be opened in Securities Companies.

Therefore, foreigners wishing to invest in the shares of companies listed on the Yangon Stock Exchange (YSX) open and trade in the bank accounts specified by the Commission. Ministry of Finance and Industry The Securities and Exchange Commission has issued a petition. The Central Bank of Myanmar has issued Directive No. 3/2020 on the requirements for banks to be involved in the daily trading of shares of companies listed on the Yangon Stock Exchange. According to the Notification No. (1/2019) and Instruction No. 1/2020 of the Securities and Exchange Commission, foreigners living in the country and foreigners living in the country will be allowed to trade the shares of listed companies on the Yangon Stock Exchange. Instruction No. 1/2020; According to Article 19, foreigners are required to bring their investment into Myanmar in the trading of shares by Foreign exchange management law, and Foreign Exchange Management Rules and Regulations issued by the Central Bank of Myanmar, the instructions must be strictly followed and supervised by the Central Bank of Myanmar.

Source: Daily Eleven

Mon State is calling on both local and foreign investors to take advantage of its strategic location and geography to invest in the fisheries sector. The Chair of the Mon State Fisheries Federation said that interested parties can invest in the sector to produce finished and value-added products. Other players in the industry see such investments as an opportunity to further develop the state and its economy. They would like to invite investors to gain access to modern technology.

Mon State in return can offer our land, lakes, and labour. Mon State is geographically connected to the Andaman Sea and Gulf of Mottama in the West with more than 140 miles of coastline. Fisheries related businesses are a key driver for the state’s economy. Shipping by sea is readily available and transportation by road is also an option for exports to China, Thailand and India. Mon State should invite businesses that will invest in canned fish or dried fish factories said by the local businessman. The state usually produce more than 100,000 tonnes of prawns and shrimps every year.

As much as 12,000 tonnes are exported to China, Singapore and Malaysia annually. Approximately 80 percent of the fishery products that are produced within the state are exported to China. Mon’s call for investors comes on the back of a decline in fisheries exports due to the COVID-19 pandemic. While the value of Myanmar’s fish export market increased form US $ 732.2 million in the 2018-19 fiscal year to $858.9 million in 2019-20, this figure is projected to drop drastically as the market has been plagued by difficulties arising from the COVID-19 outbreak.

The government will try to negotiate with other countries to connect and export fishery products to their markets. Moreover, the Ministry of Agriculture, Livestock and Irrigation need to negotiate with the Myanmar Fisheries Federation and the respective departments to issue COVID-19 free certificates on the fish produced in the country. This will help identify and set standards, upgrade the technological skills of the staff and improve the knowledge of the cold storage facilities. It is also added that the Department of fisheries and Cooperative Department will also collaborate to improve local fish consumption.

Source: Myanmar Times

The Italian Thai Development Public Company (ITD) has informed the Stock Exchange of Thailand that contracts signed between the company and Myanmar involving work on the first phase of Dawei Special Economic Zone have been cancelled. Myanmar was reported to have cancelled seven out of eight contracts made in 2015 for development of the SEZ after ITD failed to deliver its part of the agreement. When contacted, the Dawei SEZ Management Committee from Myanmar said the cancellations have yet to be officially announced. They have yet to approve the cancellations and have no comment at the moment.

The ITD is seeking legal counsel on how to proceed given the circumstances. Last month, the Japanese government said that it would commence a survey to determine the total amount of capital expenditure required to participate in the development of the Dawei deep sea port project. Myanmar is now counting on financial and technical support from Japan to kickstart construction of the long-delayed SEZ after Japan in November made an official offer to Myanmar and Thailand to invest in Dawei.

The DAwei SEZ is expected to be the largest SEZ in South East Asia- about eight times larger than Thilawa SEZ in Yangon- and over ten times larger than Kyauk Phyu SEZ in Rakhine when complete. Located 20 kilometers north of Dawei, the captial of Tanintharyin Region in Myanmar’s southeast coast bordering Thailand, the Dawei SEZ comprises 20,000 hectares of land and includes industrial as well as port facilities. Loans have been acquired from the Thai to construct a highway between Dawei and the Thai Border, which will be complete in 2023. Work to connect the SEZ to the national grid is expected to be completed in 2023 as well.

Source: Myanmar Times

From the 2016-2017 fiscal year to the end of 2020, the amount of foreign investment in Myanmar reached over $ 25.5 billion, according to the Directorate of Investment and Company Administration. From the 2016-2017 fiscal year to the end of 2020, 995 foreign-invested companies have invested in Myanmar, ranging from $ 24.165 billion. According to the SEZ law, 60 foreign-invested businesses in the Thilawa SEZ have invested up to $ 1.382 billion. During that period, 1,055 foreign-invested companies in Myanmar invested a total of $ 25.548 billion. During this period, production in Myanmar; Transportation; Housing development; Energy Hotel and tourism; Livestock and fisheries; Construction of industrial zones; Oil and gas; Agriculture; Mining; Foreign investment was the main source of investment in 11 sectors, including services.

In the manufacturing sector, 719 companies invested $ 6.289 billion, accounting for more than 26 percent of the total. In the transport sector, 29 companies invested $ 6.135 billion, accounting for more than 25 percent of the total. $ 3.6 billion investment in housing development; $ 3.222 billion in investment in the energy sector; More than $ 806 million invested in the hotel and tourism sector; Over $ 463 million invested in the livestock and fisheries sector; More than $ 390 million invested in industrial zone construction; More than $ 360 million in investment in the oil and gas sector.

 More than $ 190 million in investment in the agricultural sector; More than $ 11 million has been invested in the mining sector and more than $ 2.6 billion in the services sector. The director-general of the Directorate of Investment and Company Administration said that the Myanmar Investment Commission has received proposals for 24 projects worth $ 3.5 billion in foreign investment for the 2020-2021 fiscal year. For the next year, they have 24 proposals that the Investment Commission has to consider and then discuss the need. The value of the 24 proposals is estimated at US $ 3.5 billion.

Source: Daily Eleven

Majority of foreign enterprises eye the manufacturing sector for investments in the first quarter of the current financial year 2020-2021, pulling in US$158 million from 13 projects, the Directorate of Investment and Company Administration (DICA) stated. Myanmar has attracted foreign direct investments of more than US$348.8 million in Oct-Dec of current FY, including the expansion of capital by existing enterprises and acquisitions in the Special Economic Zones, DICA’s statistics indicated. Out of 23 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and 31 December of current FY, 13 enterprises pumped FDI into the manufacturing sector.

Livestock and Fisheries sector attracted three projects while agriculture, power and other services sector pulled two projects each and one foreign enterprise entered the hotels and tourism sector. At present, labour-intensive enterprises face financial hardship, disputes between the employers and employees and the closure of factories. However, those cases in the industry did not hinder new investments. The manufacturing enterprises and businesses that need large labour force are prioritized, MIC stated.

During the current FY2020-2021, Myanmar Investment Commission (MIC) will give the go-ahead to 24 proposals submitted in the previous FY2019-2020. The commission is carefully assessing the projects, and upon approval of the ministries concerned, it will grant permission. Twenty-four foreign investment proposals have an estimated capital of over US$3 billion. The commission is carefully reviewing 24 proposals due to large projects, he continued. MIC intends to reach the FDI target of $5.8 billion for the current FY2020-2021. According to the DICA data, the country almost reached an FDI target of $5.8 billion in the 2019-2020FY. However, due to the COVID-19 impacts, it has only registered FDI inflows of $5.68 billion.

Source: The Global New Light of Myanmar

Myanmar has approved the development of an Integrated Domestic Gas to Power Project involving US$2 billion in investments in Kyaiklat, Ayeyarwady Region. The Ministry of Electricity and Energy granted a Notice to Proceed to Thai national oil company PTTEP for the 592-megawatt project, which will be carried out under a 20-year Build, Operate and Transfer basis. An option to extend for five years will also be included.

PTTEP will utilise gas produced domestically at its Zawtika and M3 gas fileds in the Gulf of Moattama to generate affordable electricity for Myanmar. The project, which is expected to be implemented in the first half of 2024, was approved in line with Myanmar’s Sustainable Development Plan and its Energy Master Plan, which aims for all households to have access to electricity 2030. Natural gas produced aat PTTEP’s fields will be transported via onshhore and offshore pipelines totalling 370km.

The pipelines will connect Kanbauk, Daw Nyein and Kyaiklat to two newly constructed gas receiving stations at the project site. The electricity generation from this project is expected to account for approximately 10 percent of Myanmar’s existing installed power plant capacity. The generated power will be sold to state-owned Electric Power Generation Enterprise. It will supply power to future projects around Yangon and Ayeyarwady regions while surplus energy will be fed to the national grid via a 230 KV transmission line from Kyaiklat to the Hlaing Tharyar substation. A final investment decision will be made by early next year.

Source: Myanmar Times

The Myanmar Investment Commission (MIC), gave the green light to five new investment proposals including two 30 MW solar projects and approved the four existing projects for capital expansion, according to a video conference held on 30 December 2020. The permitted investments covered the energy, fishery, hotel and services sectors, with an estimated capital of US$138.178 million and K109.204 billion. The projects are expected to create over 4,000 job opportunities. According to the Ministry of Investment and Foreign Economic Relations, the new projects permitted by the MIC include two 30 MW solar power projects in Sagaing Region and a shrimp farm project in Taninthayi Region.

The solar power projects are in keeping with the commitment made by State Counsellor Daw Aung San Suu Kyi to tackle climate change in her address to the virtual Climate Ambition Summit held on 12 December 2020. In her statement, the State Counsellor announced Myanmar’s intention to submit its Nationally Determined Contribution (NDC) by the end of the year. The NDC will aim to reduce over 243 million tonnes of carbon dioxide by increasing the share of renewable energy to 39% and reducing the forestry sector’s net emission by 25%, the ministry stated. The Ministry of Electricity and Energy is implementing solar power plants by next summer to meet the country’s growing demand.

MIC and the relevant investment committees in the past three months (Oct-Dec) of the current financial year 2020-2021 gave the go-ahead to 19 foreign enterprises from China, Singapore, the Republic of Korea, Thailand, India and Viet Nam in manufacturing, livestock & fisheries and agriculture, energy and hotels and other services sectors. They brought in investments of over US$337.75 million, including the expansion of capital by existing enterprises. The foreign enterprises created over 11,000 jobs for locals.
The FDIs have flowed into 12 sectors. They are oil and gas, power, transport and communications, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing and other services sectors. Of 51 foreign countries and regions investing in Myanmar, Singapore put the largest investments, followed by China and Hong Kong (SAR).

Source: The Global New Light of Myanmar

The domestic and foreign enterprises permitted and endorsed by the Myanmar Investment Commission (MIC) and other regional and state investment committees created 9,031 jobs in the first two months (Oct-Nov) of the current financial year 2020-2021, according to the Directorate of Investment and Company Administration (DICA). The job creation in the past two months slowed further than the rate in September, according to statistics issued by the Myanmar Investment Commission (MIC). The job creation stood at 4,485 in November and 4,546 in October, which plunged from 11,990 jobs in September. During the October-November period, the foreign enterprises created over 7,081 jobs for locals, adding the existing foreign enterprises’ recruitment.

The domestic enterprises under the Myanmar Investment Commission created 1,950 jobs for local people, including increased employment by the existing enterprises. MIC and the relevant investment committees in the past two months gave the go-ahead to 14 foreign enterprises from China, Singapore, the Republic of Korea, Thailand, India and Viet Nam in manufacturing, livestock & fisheries and agriculture and other service sectors. They brought in an estimated capital of US$199.756 million, including the expansion of capital by existing enterprises. Meanwhile, 17 domestic enterprises invested K69.86 billion in manufacturing, real estate, hotel & tourism, agriculture and other service sectors. In the previous financial year ended 30 September 2020, the domestic and foreign enterprises have created about 200,000 jobs since October 2019.

The job creation includes employment of about 5,000 expatriate workers in Myanmar, according to the Directorate of Investment and Company Administration (DICA). MIC is prioritizing the labour-intensive businesses. The commission ensures to approve responsible companies by assessing environmental and social impacts. The commission is working together with the relevant departments to screen the projects, said director-general of the DICA. According to the DICA, domestic and foreign projects employ over 670,000 residents in the incumbent government period. Those enterprises have created over 96,000 jobs in the FY2016-2017, 110,000 jobs in the FY2017-2018, over 53,000 jobs in the 2018 mini-budget period, over 180,000 jobs in the FY2018-2019 and 210,000 jobs in the FY2019-2020 respectively.

Source: The Global New Light of Myanmar

Myanmar is raising efforts to draw more foreign investments into the local manufacturing sector. On December 27, the government inaugurated the US$274 million Yangon Amata Smart and Eco City industrial park project, which will be jointly constructed by the Myanmar Department of Urban and Housing Development (DUHD) and Thailand’s Amata Corporation PCL under the supervision of the Yangon Region Government.

The Yangon Amata Smart and Eco City will be built on 2000 acres of land beside the No.2 highway near Lay Htaunt Kan village, with 1200 acres in Dagon East and 800 acres in Dagon South townships. The project will be developed in five phases over a period of five years in order to enjoy tax exemptions granted under the Myanmar Investment Law. It is expected to create 35,912 new jobs when it is complete.

It is understood that four Thai firms, including Thailand’s national oil company PTTEP, will jointly construct a power plant to supply power for the project. The Department of Urban and Housing Development will own a 20 percent stake in the industrial park, which is registered in Hong Kong, while Amata Asia Myanmar Ltd will hold the remaining 80pc. A land lease agreement has been signed on January 24, according to the Ministry of Construction.

The Yangon Amata Smart and Eco City was inaugurated shortly after development of the US$100 million Korea-Myanmar Industrial Complex (KMIC) commenced in Hlegu township, Yangon, on December 24. The Korea-backed industrial park will be jointly owned by the Ministry of Construction, Korea Land and Housing Corporation and Korea’s Global SAE-A Ltd on 558 acres of land in Nyaung-nhit-pin, Hlegu township. Land plots in KMIC’s industrial park will be available for lease online at rates between US$69 and US$75 for one square meter starting from January 21.

The two new industrial parks will give investors more options to open manufacturing facilities in Myanmar as they will come equipped with basic infrastructure such as roads and power plants and offer incentives such as tax exemptions. Currently, Myanmar has just one such industrial park – the Thilawa Special Economic Zone in Thanlyin township, Yangon – which opened in 2015. By developing more industrial zones that meet international standards, the government is hoping to lure foreign manufacturers to open up factories in Myanmar. Already, some 135 Korean firms are expected to invest US$ 48.5 million in KMIC.

Another two Yangon industrial parks, the US$230 million Myanmar Singapore Industrial Park in Hlegu township and China-banked Htantabin park in Hlaing Tharyar township are now also being constructed. Besides drawing more foreign direct investments and creating jobs, the investors are also expected to introduce new technologies and skills to Myanmar.

During the Yangon Amata Smart and Eco City ceremony, it is said that there is a need for more technology-based ventures and large-scale investments post COVID-19. He added that the Thai-backed project will draw tech-savvy investors to set up factories in Yangon. It is also said that Myanmar must keep up with technological advances, and if it continues filling only the basic jobs, it will not be able to move up the value chain in the future.

Source: Myanmar Times

This week Metro would like to introduce you to the Lucky Square Condo Project, which is located on Kyaik Khauk Pagoda Road at the end of Thanlyin Bridge. It’s a place that’s attracted much investor interest, and promises to be a top venue for business and leisure in the city. Located just across the Yangon River, Lucky Square is a convenient distance from the downtown area but far enough away to maintain a relaxing and quiet suburban feel. Two types of condo designs are available, and both have access to the adjoining shopping center. Buyers can choose from apartments which include either two or three bedrooms, and prices vary according to unit size and location within the complex.

The condo project contains a total of 228 apartments, and the price per square foot will start from around K110,000. Individual units range from around 1,000 to 1,855 square feet. The condo includes high-end facilities such as swimming pool, gym, 24-hour security, a function room, BBQ area, bar and lounge, as well as access to free wi-fi and TV channels. As with all modern condos in Myanmar these days, residents no longer need to worry about blackouts with a backup generator always on hand. The adjoining shopping mall provides all the shopping essentials to make condo living convenient, also offering resident plenty of options for dining-out.

Moreover, spacious car parking is also included, and a drive to the city will take less than ten minutes across the nearby Thanlyin Bridge. The project is also close to Thilawa SEZ, as well as many cultural attractions south of the river – such as the ethnic village, Portuguese church and Kyauktan Pagoda. The real estate prices for Kyaik Khauk Pagoda Road in Thanlyin township start from K17,000 per square feet for the current financial year. This price factors in the current down-trend in the market, making down estimates by 25 pc from last year. However, Thanlyin township continues to see a healthy degree of sustained investor interest, with nearby condo and industry projects still tabled for completion in the coming years.

Source: Myanmar Times