Jul 21, 2014

Gas exports reach US$10 bn in 3 years

Myanmar’s natural gas exports have amounted to over $10 billion in three years under the civilian government, according to the Ministry of Commerce.

The gas revenues comprise $3.5 billion for fiscal year 2011-12, $3.66 billion for 2012-13 and $3.3 for 2013-14.

In the same period, exports of timber and wood products amounted to $2 billion. And gems earned $2 billion in export earnings. The country received a total of $14 billion in exporting natural resources.

Recently the government organised the 51st Myanmar Gems Exhibition which saw the record earnings of about $800 million.

For the past eight years, natural gas revenues totalled $22 billion.

The country has four natural gas fields, namely Yetagon, Yadana, Zawtika and Shwe.

Private operators have been awarded production contracts to sell 85 per cent of output from three fields while the state-owned Myanmar Oil and Gas Enterprise has the control over the remaining 15 per cent.

Only at Yetagon field, the government has retained the right over 20.45 per cent of production output.

Source: Eleven Weekly Media

More than 3,000 companies registered under foreign investment law

A total of 3,032 foreign-based companies and more than 70 joint ventures have registered to open offices and to operate 720 projects under the foreign investment as of June, according to the Directorate of Investment and Company Administration.

"The investment commission gave approval to mostly garment factories, shoe factories and other manufacturing businesses. This will create employment opportunities for the citizens. On the other hand, labour rights should be ensured. It is bad if foreign investors could not ensure labour rights after getting approval for investment," said an executive from the Union of Myanmar Federation of Chambers of Commerce and Industry.

The government-approved foreign investment reached over US$46 billion last June. Meanwhile, the actual foreign investment was recorded at $36 billion.

Energy sector represents the largest amount of foreign investment as it accounts for $19.28 billion. Oil and gas sector follows next with the total foreign investment of $14.37 billion.

Source: Eleven Weekly Media

SCG invests US$ 400 million to build cement factory

Thailand’s Siam Cement Group is investing $ 400 million to construct the cement factory in Mawlamyine, Mon State.

The construction of the factory is expected to complete in the middle of 2016.

“The priority we are focusing this moment is to manufacture cement and later cement related products such as ready mixed concrete and precast concrete blocks,” saidKanTrakulhoon, SCG president and CEO.

“Myanmar seems developing progressively and infrastructures are needed so cement market will be good. The investments made in industry and housing construction sectors are increasing especially in major cities – Yangon, Mandalay and Nay Pyi Taw,” he said.

He added that the cement factory will be using Waste to Energy system – electricity or/and heat from incineration of waste and conservation of greenhouse effect. A total of 1.8 million volume of cement are expected to manufacture annually.

SCG has been in Myanmar for more than 20 years and its affiliate, the first ready mixed concrete company Myanmar CPAC Service was established in 1996.

Source: Eleven Weekly Media

Myanmar pharma sector expected to grow 10-15%

MYANMAR'S pharmaceutical industry is expected to rev up 10-15 per cent a year thanks to the government's increasing spending on healthcare.

The Myanmar Pharmaceutical and Medical Equipment Entrepreneurs Association made the forecast at the recent "Myanmar Medi-Pharm Expo", signalling confidence in the future of the nascent market now estimated to be worth about US$100 million to $120 million (Bt3.2 billion to Bt3.85 billion).

During the past three years, the Myanmar government has tripled healthcare expenditures. Spending by consumers will also rise in line with the country's growing economy.

The pharma industry was starved during the country's long closure under a military regime, but newly liberalised economic policies have provided room for foreign investors as well as local companies to build their business.

The industry relies heavily on foreign medicine, with more than 90 per cent imported. Indian suppliers enjoy the largest share at 35.4 per cent, followed by Thailand, China, Pakistan, Bangladesh, South Korea and Indonesia.

About 60 per cent of all products are sold in Yangon and Mandalay.

There are only 10 domestic manufacturers. The government allowed local companies to apply for production licences in January 2012.

Although the industry is still in its infancy, there are signs that international companies are keen to enter the market.

The seminar provided an overview of the industry and explained how to register medicines in Myanmar.

The exhibition was the second of its kind organised by Minh Vi Exhibition and Advertisement Services. Exhibitors came from 14 economies, including India, Taiwan, Singapore and Thailand, to the event, which they saw as a platform to enter the emerging market. Local companies saw it as an opportunity to find partners.

"We are satisfied with the result of this year's exhibition as we recorded 927 visitors on the first day alone. Last year, we only had that many for the entire event," Nguyen Ba Vinh, director-general of the organiser, said yesterday.

Most exhibitors wanted to test the waters rather than to strike deals.

Natchakot Sukamongkol, product and export manager for Asia Chemie (Thailand) Co, said he joined the event for the first time just to observe the market.

Thai 3B Scientific Co, a distributor of scientific models and simulators from Germany, looked to explore opportunities to market products aimed at educational purposes in Myanmar.

"If we get customers here, the products may be sent directly from our parent firm," a representative said.

Wanasak Wingsuwan, sales engineer of Official Equipment Manufacturing Co, said: "At present, there is limited spending from private investors, so we mainly receive business from international organisations or investors that have already started projects here."

Source: The Nation

Jul 19, 2014

Ministry of Electric Power invites bids for the construction of Gas Pipeline in the Thilawa Area.

For more information on this opportunity, please contact evi@myanmar-business.org

MPE/Ministry of Energy: Tender for supply of gasoline (92-RON) UNL (47,000 +/- 10% barrels)

For more information on this opportunity, please contact evi@myanmar-business.org

Jul 17, 2014

Myanmar's state telco partners with KDDI, Sumitomo

Companies pledge to bring 'Japanese-quality' fixed and mobile services to Myanmar.
Myanmar's state-owned telecoms incumbent has brokered a partnership deal with Japan's KDDI and Sumitomo Corporation that will see the companies jointly operate telecoms services in the country.

Myanma Posts and Telecommunications (MPT) has been seeking a partner for some time, and KDDI was widely tipped to be the most likely candidate. MPT officially inked the deal on Wednesday.

KDDI and Sumitomo were part of a consortium that made it to the final stages of Myanmar's telecom licensing competition last year. The contest, which attracted 91 bidders, ended in June 2013 when Qatar's Ooredoo and Norwegian operator Telenor emerged victorious.

With Ooredoo and Telenor both set to launch services in the coming months, Myanmar's state-run players are readying themselves for competition.

MPT already offers limited mobile services, but with prices out of range for most people, penetration is languishing at around the 10% mark. ISP Yatanarpon Teleport (YTP), a joint venture between the state and local companies, is also gearing up to enter the mobile market and it too is on the hunt for partners; Orange, True Corp and Axiata are reportedly on its shortlist.

KDDI and Sumitomo Corp have set up a joint venture, KDDI Summit Global Myanmar (KSGM), through which they will conduct their business in Myanmar. KSGM has signed an agreement with MPT regarding the joint operation of services that lays out the terms of the cooperation, including profit-sharing, but the companies have not made the details public.

"The joint operations will provide 'Japanese-quality' services," in both fixed and mobile, by upgrading the existing telecoms infrastructure in Myanmar, KDDI said in a statement. The firms will also focus on customer service in call centres and retail outlets, it added.

"Myanmar is experiencing a rapid move towards democracy and the market in mobile phones and fixed line communications is expected to grow dramatically in the future," said KDDI president Takashi Tanaka.

"Taking advantage of the wealth of experience and knowledge that we have built up both inside and outside Japan through our mobile phone operations in Mongolia, MVNO business in the U.S. and other operations, KDDI will provide the same level of Japanese-quality services to Myanmar and contribute to the country's growth and development," he added.

Meanwhile, Sumitomo Corp highlighted its experience in the broader infrastructure market.

"Our business record in Myanmar stretches over 60 years, where we have undertaken railway, telecommunication, and broadcasting improvement projects, power generation projects, as well taking part in developing the Thilawa Industrial Park," noted the firm's president and CEO, Kuniharu Nakamura.

"Using the know-how and experience that we have thus cultivated, we will do our part to support the improvement of living standards and industrial development in Myanmar through this joint operation," he said.

Source: Total Telecom