Business

FDI ignoring agro-industry: MP

Only one per cent of foreign direct investment (FDI) goes to Myanmar's agricultural sector due to farmland grabs, land price manipulation and weak laws, MP Thura Aung Ko told Parliament on Thursday.

Foreign companies had invested more than Ks 50.6 billion in 828 of the country's businesses to the end of November last year, mostly in mining, oil and natural gas exploration, he said. However, 70 per cent of the country's population comprises farmers living in rural areas, he pointed out.

Myanmar’s imports up

Myanmar imported commodities worth US$15,064.208 million from April 1 to February 27 of 2014-2015 FY, including motorcars and petroleum products and this year’s volume was over US$2.5 billion higher than that of the same period of last fiscal year, according to the Ministry of Commerce.

Import volume of the same period of 2013-2014 FY was US$12,479.050 million.

Foreign investment depends on 2015 poll outcome, report says

Myanmar’s economic development will depend on the outcome of the 2015 general election, in the short term, according to “Report: Myanmar 2015’’ released by the Oxford Business Group.

A series of political and economic reforms have led to the lifting of most international sanctions since 2012. While it may take many years of intensive foreign investment and rapid growth to catch up to other Southeast Asian countries, Myanmar has exceptional potential for a country in its income range.

Exports fall by US$72m

Myanmar's foreign trade volume surpassed US$25 billion this fiscal year despite its exports being US$72 million short of the last fiscal year's amount, according to the Ministry of Commerce.

The total trade volume of more than US$25.17 billion included exports of US$10.1 billion and imports of US$15.06 billion made from April 1, 2014 to February 27.

Japan donates airport equipment

Airport safety and security equipment donated by the Japan International Cooperation Agency (JICA) has been installed in Bagan-Nyaung U airport, according to the Ministry of Transport. 

In an effort to improve airport safety and security, Japan donated the equipment to the civil aviation department. 

Both governments agreed to the handover of equipment in 2013. 

560 mines discovered, coal output expected to rise

560 new mines have been discovered since May, 2013, according to the National Energy Policy and the National Energy Management Committee.

According to the Ministry of Mine, the country now has 540 million tonnes of coal deposits and more mines are expected to be found in the future.

The coal production is likely to increase by 5 million tonne in the future.

Foreign investment just under US$7 billion this fiscal year

Foreign investment in Myanmar reached just under US$7 billion in the 2014-2015 fiscal year. This amount exceeds the foreign investment volume in the 2013-2014 fiscal year, according to Directorate of Investment and Company Administration (DICA).

From April 2014 to the end of January 2015, foreign investment in Myanmar amounted to over US$6.955 billion. The total foreign investment volume in the 2013-2014 fiscal year was $4.107 billion.

Tours to Myeik islands 'still costly'

Trips to Myeik Archipelago are too costly and also in need of infrastructure, according to local tour agencies.

"The plane ticket to Myeik is around US$200. There are no ferryboats to the isles and travellers need to spend more on hiring private boats. So the transportation charges alone cost about US$500. Together with accommodation fees, the cost goes up to US$800," said Noun Noun Han, general secretary of the Union of Myanmar Travel Association.

Price hikes in southern Shan keep local tourists away

Despite the increase in foreign tourism in Taunggyi, Inle, Kalaw and other destinations in southern Shan State, price hikes have kept many local visitors away from these places, according to sources in the travel and tourism sector.

“Hotels in Inle are expensive. Those in Kalaw are more expensive. So we cannot offer packages to all classes of people, [especially] local people]. It costs at least over US$100 to visit Taunggyi,” said a representative of Caravan Myanmar Tour Co.

Comments invited on new investment law

The public is invited to offer input on a draft of the revised Myanmar Investment Law, which has been uploaded to the Directorate of Investment and Company Administration (DICA) website.

DICA is updating the current law with the assistance of the International Finance Corporation. The draft has been written in English for international readers, and a Myanmar version will soon be available.