Business

Nine firms to export rice officially to China

Nine companies, including Mapco, have been selected to export rice officially to China, starting in April and May, Ye Min Aung, general secretary of the Myanmar Rice Federation (MRF), told a press conference.

China Certification and Inspection Group offices are being opened in Yangon, Mandalay and Muse.

OECD: Agricultural income per capita is about USD 200 per year

Recent report released by the Organisation for Economic Co-operation and Development says Myanmar’s agricultural income per capita is about US$200 per year, which is the lowest in Asia.

The report says Myanmar’s agricultural sector has considerable potential for expansion and diversification but faces structural constraints. Agriculture accounts for nearly 32 per cent of Myanmar’s GDP and 20 per cent of its export earnings. Most farms are subsistence-level holdings, with over 50 per cent of farms being smaller than five acres.

Foreign investment tops US$2 billion in December

More than US$2 billion in foreign investment entered Myanmar in December 2014, $1.8 billion of which went into the oil and natural gas sector, according to Directorate of Investment and Company Administration.

The rest of the investments went toward the manufacturing, mining, transportation and communication, hotels and tourism, real estate and service sectors.

The government of Myanmar is trying to attract investment into its most labour-intensive sectors, according to the Myanmar Investment Commission.

No monopoly over fuel market: FOIEA says

The Fuel Oil Importers and Exporters Association yesterday denied they are monopolising the fuel market and said they are even working to cut local gasoline and diesel price while the global oil price is falling.

Officials prepare for rice exports to China

To facilitate rice exports to China, the China Certification & Inspection Group (CCIC) will open an office in Yangon.

The Myanmar Rice Federation (MRF) will send a list of 10 rice exporting companies and other
documents to China. The CCIC will hold talks between the Myanmar government, COFCO Group and the companies that signed the memorandum of understand with the MRF over rice trading.

Securities bond firms can set up JV with foreign partners

Local companies dealing with securities bonds can set up a joint venture with foreign partners if they want to, according to Myanmar Securities Exchange Commission (MSEC).

The Yangon Stock Exchange is set to be established before October this year.

Stock licences to be issued this month

Licences will be issued this month to the securities companies which will trade on Myanmar’s first-ever capital market named “Yangon Stock Exchange”, according to the finance ministry.

“Myanma Economics Bank (MEB) has already signed a memorandum of understanding with the Japanese companies. The issuance of licences to companies will be done by the Security Exchange Commission. It will happen this month,” said Dr Maung Maung Thein, deputy finance minister.

Shan State invites firms to build small power plants

The Shan State government is inviting businesses to build small power plants of 30 megawatts and below under a BOO (build-operate-own) system for producing and distributing electricity.

Firms are asked to submit registration documents, maps of the proposed plant’s location and project plans to the Ministry of Electric Power, Ministry of Industry and Shan State government in Taunggyi.

It is feared that huge power plants can harm the environment and smaller projects are seen as more sustainable in a region where power supplies are unreliable.

Vietnamese firm to unveil Yangon development in October

Offices and a five-star hotel on Kabar Aye Pagoda Road in Yangon that are being built with investment from the Hoang Anh Gia Lai Group from Vietnam will reportedly open by the end of October, according to the Ministry of Hotels and Tourism.

The offices are due to be completed in May with the development also including apartments that are due to be finished in 2017, the ministry says.

The project is employing 2,600 locals and 400 foreign experts, said Vo Truong Son of the group during his meeting with tourism minister Htay Aung.

Global oil price down but not local prices

Despite the fall in global oil price from US$94 per barrel in January 2014 to US$50 in the beginning of January this year, local petroleum and diesel prices remained the same.

“Although the global oil price has dropped sharply, local fuel prices are not falling. Usually when the global oil price increases, local prices should also follow suit. But local business people seem to focus much on benefit. They should cut the fuel prices when global oil price decreases so that it can match the international market,” said Dr Khin Maung Nyo, a writer.