POLITICS
Fighting escalates near Muse in N. Shan state
There has been an escalation in fighting in the Shan state following at attack on Muse by a coalition of ethnic armed groups on 21st November. Residents of Muse have been fleeing across the border into China, while the latter as issued the normal calls for restraint. http://www.mmtimes.com/index.php/national-news/23969-china-myanmar-meet-as-fighting-continues-in-shan-state.html
Kofi Annan to revisit Myanmar in the wake of UNHCR’s critical report on Rakhine situation
The situation in Rakhine state has returned to the international headlines. Comments by a representative of the UNHCR in Bangladesh who, in an interview on the BBC, suggested the ultimate goal of the government is “ethnic cleansing of the Muslim minority in Myanmar” have met with vociferous criticism.
Meanwhile, it has been announced that Kofi Annan, chair of the Advisory Committee on Rakhine State, is to make a second visit in early December. http://www.mmtimes.com/index.php/national-news/23958-annan-to-make-second-myanmar-visit.html
ECONOMICS
Consideration being given to simplifying investment approval procedures for the new Investment Law
The Myanmar Times has reported a number of new initiatives that have been announced by DICA to support inward investment.
In particular, certain sectors, including those involving travel, high-value agricultural production, or which connect local and local production networks and boost technology and SME development, are to be treated as higher priority and may attract extra tax breaks. Projects that support under-developed regions may also secure preferential treatment. http://www.mmtimes.com/index.php/business/23769-new-policies-may-boost-investment.html
MIC is also reported to be considering ways that, in certain circumstances, would obviate the need for foreign investors to go through the time-consuming process of securing permission from line ministries, in addition to MIC approval for their investments. It is also possible that, for smaller investments, it may be sufficient to obtain permission at regional or state level. Once these points are agreed, it is envisaged that new guidelines will be drafted for incorporation in the foreign investment law next year. http://www.mmtimes.com/index.php/business/23849-mic-working-to-avoid-line-ministry-approval-for-investments.html
UMEHL reportedly open to new JV opportunities
In an interview with the Myanmar Times (reflected in another report in the Financial Times), a representative of MEHL, one of the business conglomerates with connections to the military, has been explaining how it has been changing its ownership structure in order to compete on a more level playing field with other companies in Myanmar, and to engage in further international JVs.
According to the report, post restructuring, MEHL has severed its direct links with the Ministry of Defence, and ownership is now split between over 300,000 in-service and retired personnel, as well as some welfare organisations and veterans groups. The conglomerate’s privileged status in respect of certain sectors (such as mining) and tax has also been scrapped.
MEHL is said to be in discussion with some foreign enterprises for potential JVs, most of which are in the production, as opposed to the trading or services divisions. Existing JVs include Myanmar Brewery, Virginia Tobacco and Myanmar POSCO.
Please use the following links to read the articles from the Myanmar Times and Financial Times on MEHL: http://www.mmtimes.com/index.php/business/23774-military-conglomerate-hoping-for-more-jvs.html
https://www.ft.com/content/c6fe7dce-d26a-11e6-b06b-680c49b4b4c0
BUSINESS
Department of Civil Aviation’s plans PPPs for regional airports
The Myanmar Times has reported that the Department of Civil Aviation has submitted a plan to the Ministry of Transport according to which regional airports may be upgraded and operated by the private sector under public-private partnerships.
A similar proposal was considered by the previous government, but it made little progress, even though it was said to have received expressions of interest from several parties.
The Japan International Cooperation Agency is expected to provide technical assistance to the plan. http://www.mmtimes.com/index.php/business/23413-dca-submits-plan-for-regional-airports-to-be-privately-run.html
Convalt Energy proposes solar power plants
Convalt Energy, a portfolio company of ACO Investment Group, which is working on solar and wind power projects in India and Egypt, has received MIC approval to invest $480mn in 300MW of solar power assets in the Mandalay region. This is according to an Asia News Network report posted to the company’s website.
According to an earlier Bloomberg report posted to the same website, the project comprises two facilities of 150MW each and is expected to create 400 construction jobs and 100 permanent jobs. http://www.convalt.com/
Turkish floating power plant to reach Yangon in April 2017
The Irrawaddy has reported a 480MW floating power plant operated by Turkish company Karadeniz Holding has set sail for Myanmar and is expected to reach Yangon by April 2017. It reportedly expects to supply 300MW of power to the Ministry of Electricity and Energy under a 5-year contract. https://www.irrawaddy.com/business/turkey-firms-plans-launch-power-barge-rangoon.html
Meranti Singapore planning galvanising plant at Thilawa
According to the Myanmar Times, Meranti Singapore has a plan to invest $85mn in a galvanising plant and paint plant at Thilawa SEZ, and hopes to secure the reservation agreement at the start of 2017. The company has indicated that it is looking for one local and one international partner with whom it can work on the project. It expects a portion of production to be for export. The galvanising line is expected to start production in 2019. http://www.mmtimes.com/index.php/business/23487-singapore-firm-plans-thilawa-galvanising-plant.html
Fertiliser investments at Thilawa
Dealstreet Asia has reported that two Thai companies (Thai Central Chemical and CPP Fetiliser) are to invest a combined $23mn at Thilawa. http://www.dealstreetasia.com/stories/myanmar-dealbook-thailands-tccc-approved-for-12-5-m-investment-in-thilawa-cpp-fertilizer-invests-10-5m-for-production-and-sales-57541/
Nippon Sanso (industrial gases) and Buhler (agricultural machinery) investing at Thilawa
Also according to Dealstreet Asia, Japan’s Nippon Sanso has a plan to invest $11mn in an industrial gases plant and Buhler $5mn in an assembly plant for agricultural milling machinery. http://www.dealstreetasia.com/stories/myanmar-dealbook-japans-taiyo-nippon-sanso-starts-prep-for-production-of-gases-for-11-29m-buhler-myanmar-to-invest-5-2-m-for-service-and-trading-of-agri-machineries-57787/
Malaysia’s Daibochi enters packaging JV with Smart Pack International
According to the Myanmar Times, Daibochi will invest $6.8mn in the facility and receive a 60% interest. A further $5.5mn will be invested in the project over three years. The company is expected to service the Myanmar market to start with, but hopes to export production to other countries in ASEAN later. http://www.mmtimes.com/index.php/business/23665-malaysian-firm-to-wrap-up-packaging-jv-this-year.html
Myanmar Finance International to use MayBank loan to extend micro-finance reach
MFIL, a microfinance joint venture between London AIM-listed Myanmar Investments, Myanmar Finance Company and the Norwegian Investment Fund for Developing Countries, has signed a $1mn, local-currency denominated loan agreement with MayBank, which will be used to increase its outreach and expand its loan portfolio. As of the end of September, the company had extended loans worth Ks 6.5bn (or c. $5.1mn) to c. 38,000 borrowers. MFIL is also considering launching some new products.
Use the following link to read Myanmar Investments’ press release on this initiative: http://myanmarinvestments.com/ckfinder/userfiles/files/ 2016_11_01%20PR%20MFIL%20Maybank%20Loan.pdf
