Apr 2, 2017

Myanmar-China oil pipeline nears start-up

YANGON: Nearly a decade in the making, a project to pump oil 770km across Myanmar to South-West China is set for imminent start-up, with a supertanker nearing the port of Kyauk Phyu, marking the opening of a new oil trading route.

Dogged by sensitive relations between Naypyitaw and Beijing, the US$1.5bil oil pipeline has been sitting empty for two years, but the two sides are now close to a deal, said Myanmar-based government and industry sources, despite some last-minute tensions.

An agreement between China’s PetroChina and Myanmar’s government will allow the state energy giant to import overseas oil via the Bay of Bengal and pump it through the pipeline to supply a new 260,000-barrels-per-day (bpd) refinery in landlocked Yunnan province.

The new oil gateway fits with China’s “One Belt, One Road” ambitions, linking it with central Asia and Europe, and will provide a more direct alternative route to sending Middle Eastern oil via the crowded Malacca Straits and Singapore.

It would also be a rare win for China in Myanmar after a diplomatic offensive aimed at forging better ties with its resource-rich neighbour, which has often been wary of Beijing’s economic clout.

Aung Myat Soe, deputy director of planning under the state-owned Myanmar Oil and Gas Enterprise, said the project was awaiting a final sign-off by the Electricity and Energy Minister.

Major issues including transport tariffs and Myanmar’s tax take on the oil have been settled, but port fees have yet to be finalised, said a Myanmar-based industry source familiar with the matter.
“The two sides are working to finalise the terms and sign the contract,” the person said, declining to be named as the information is not public.

“I can't say for sure when the deal would be sealed – it could be in a couple of days or early April.”
The pipeline will have an eventual capacity of 400,000 bpd, about 5% of China’s daily import demand, but the start-up of the Yunnan refinery has been held up as PetroChina and Myanmar negotiated final terms for delivering the oil.

PetroChina plans to start test production at the refinery in June, aiming to expand its foothold in China’s fuel-short southwest which has so far relied largely on rival Sinopec for supplies, said two Beijing-based oil officials familiar with the Yunnan refinery. – Reuters

Read more at http://www.thestar.com.my/business/business-news/2017/03/22/myanmar-china-oil-pipeline-nears-start-up/#EW4YZWurJQfVRZBh.99

Mar 13, 2017

Invitation for Open tender (~400 metric tons of copper cathode)

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

Mar 8, 2017

Myanmar Prawn Exports Could Reach $1bn

Exports from Myan­mar’s ailing prawn industry could be worth $1 billion per year by 2022 if it adopts a dis­ease resistant strain of the crustacean from Hawaii in the United States, ac­cording to industry lead­ers.

U Kyaw Tun Myint, chairman of the Myan­mar Shrimp Association, said at an industry meet­ing last month that My­anmar could reduce its trade deficit by 25 percent if it reached its targets for prawn production.

Marine Genetic LLC, a marine laboratory based in the United States, is planning to trial breed specific-pathogen-free (SPF) prawns in My­anmar with the aim of distributing to the local market, the February 22 meeting heard.

Myanmar predomi­nantly farms black tiger prawns at its inland farms but the industry is strug­gling with the high costs of importing shrimp lar­vae from Thailand and disease that has spread through the country’s prawn stocks.

Marine Genetic LLC has set up the Best Burma company to launch the trial breeding of five mil­lion SPF prawns in Rakh­ine State and Ayeyarwad­dy Region.

It will also share bios security systems, farming management techniques and aeration techniques with local breeders, said Dr Jim Wyban, a prawn genealogist and breeder at Marine Genetic LLC.

SPF prawns grow in both fresh and salt wa­ter, have higher survival rates and can grow up to 20 grams in their first 100 days. They can also tolerate a higher popu­lation density, up to 1.5 kilograms of prawns per square metre, which is beneficial for smaller-scale local breeders.

Prawns make up 86 per­cent of the global fishery market, said Wyban, add­ing that to capitalise on this Myanmar breeders must raise the productiv­ity of their prawn busi­nesses.
U Hnin Oo, vice-chair­man of Myanmar Fish Fed­eration (MFF), said Myan­amr’s reliance on Thailand for larvae was also hinder­ing the industry.

“We urgently need to develop prawn larvae breeding capabilities,” he said.

The MFF has urged the government to include the prawn industry in its export strategy, he added.

Myanmar prawn ex­ports reached $400 mil­lion in 2016, while region­al neighbours Thailand and Vietnam earned a combined total of $6 bil­lion from shrimp exports in the same year.

Source: Myanmar Business Today 

Mar 7, 2017

KIA Myanmar Offers 5-Year Hire Purchase Scheme for K 3000 Truck

The Myanmar branch of South Ko­rea automaker KIA has introduced a five-year hire purchase scheme for its K 3000 pick up truck, but buyers were given less than a month to take ad­vantage of the promotion­al offer.

The hire purchase of­fer, which ends March 7th, allows buyers to pay K330,000 a month for sixty months, but they have to make an initial down payment of K5 mil­lion.

The total purchase price of the half-ton vehicle is K25 million. It has a 5 Speed Manual Transmis­sion gear box and 3.0 JT Diesel Engine.

Last month KIA launched its 55555 pro­motion for two different models, the KIA Optima and KIA Carens truck. The deal offered a five year warranty, a five year hire purchase scheme, five free maintenance check ups and a K500,000 fee to register the car.

Source: Myanmar Business Today

Mar 2, 2017

New PMI for Myanmar to be launched on 1st April 2017

Yangon, 1st March 2017 – Shenton Institute of Applied Finance (SIAF) announced today that it has signed an MOU last week (24th February 2017) with Singapore Institute of Purchasing and Materials Management (SIPMM) to publish a new Myanmar Purchasing Managers’ Index (PMI) on a monthly basis.

PMI surveys are one of the closely watched indicators of economies. The new Myanmar PMI will provide a projection into Myanmar’s monthly economic situation and will complement existing indices.

The new Myanmar PMI is set to become a key barometer of Myanmar’s economy. The PMI survey is based on economic sectors, and weighted on each sector’s contribution to the Gross Domestic Product (GDP). The PMI data is collected monthly from replies to questions asked of purchasing or senior managers intra-Myanmar in over 200 companies.

The new Myanmar PMI is a composite index based on the diffusion indices of leading market indicators, with varying weights applied. Diffusion indices have the properties of leading indicators and provide quick summarized information. They depict the prevailing direction of change and the scope of change.

The Singapore PMI was developed by Professor Philip Poh in 1998 and since then, the PMI has been successfully used in Singapore. The Singapore PMI is now a key barometer of the Singapore economy, and is closely watched by governments, banks, financial institutions and media agencies worldwide.

About SIAF
Shenton Institute of Applied Finance (SIAF) is a subsidiary of Shenton Education Group (SEG), an education service provider incorporated in Myanmar. With 3 schools in Myanmar, Shenton is a holistic education management, policy, leadership and operations solutions provider. Learn more about SIAF at www.siaf.edu.mm

The Singapore institute of Purchasing and Materials Management (SIPMM) is a leading professional body in Singapore established in 1972. SIPMM publishes the Singapore Purchasing Managers' Index (PMI) on a monthly basis since 1998. The Singapore PMI has become a key barometer of the Singapore manufacturing economy and has been highly sought after by local and international news agencies, banks, investment and stock-broking firms. Learn more about SIPMM at www.sipmm.edu.sg/pmi

For further information, please contact:
SIAF (About Myanmar PMI, Analyses & Methodologies)
Dr Myo Thida
Phone: +95 (1) 553897
SIPMM (About the Professional Institute)
Ms. Catherine Tan
International Office

Invitation for Prequalification: Nankand Lake Waste Water Treatment Plant in Mandalay

for more information, please contact evi@myanmar-business.org

Mar 1, 2017

Mandalay Land Prices Fall by 40%

The price of land in Mandalay’s out­skirts has dropped by up to 40 percent, with the city’s industrial zones being the most affected, according to the Manda­lay Region Real Estate Agent Development As­sociation.

The downturn in invest­ment in Mandalay’s real estate market is a result of the government’s crack­down on jade mining, the association said.

The NLD government has cracked down on jade mines deemed to be un­safe and environmentally damaging in the wake of recent landslides which killed hundreds of work­ers in Kachin State. Man­dalay is one of the coun­try’s jade centres with its raw gem markets a mag­net for potential overseas buyers.

”The plot prices werearound K80 million be­fore but now the price has decreased by half to K40 million,” said U Khin Maung Lwin, Member of Mandalay Region Real Estate Agent Develop­ment Association.

“But sales in wards Da, Dha, Na and Ye Mon Taung have been going well,” she added.
Mandalay real estate stakeholders have called on the government to sta­bilize prices and steer the market away from price manipulation.

“We want the market to stabilize and perform nor­mally with accurate pric­ing,” Ko Maung Maung Shwe, a Mandalay Region real estate agent, said.

Attracting foreign inves­tors could present one op­tion to rekindle demand in the market but Man­dalay’s tough restrictions on foreign investors own­ing land in its industrial zones pose an obstacle.

Real estate agents have predicted that the market will be buoyed over the next few years with com­pletion of a number of on­going commercial hous­ing developments.

Source: Myanmar Business Today