Gap Inc. triples Myanmar output in first year of production

American retailer Gap Inc. (GAP) has nearly tripled the volume of products it has sourced from two Yangon based facilities within the first year of its decision to purchase Myanmar made apparel through GAP Myanmar sourcing arrangements.  GAP began outsourcing production to Myanmar in June 2014, making it the first US-based clothing manufacturer to enter the country since economic sanctions were eased in 2012. The South Korean-owned textile manufacturing facilities produce clothing for GAP’s Old Navy and Banana Republic Factory brands for export to the United States, the European Union and Asia. According to GAP, its’s GAP Myanmar sourcing arrangements have created nearly 700 new jobs, and indirectly support the employment of more than 4,000 people. (Source: http://www.irrawaddy.org/business/gap-apparel-production-triples-during-first-year-in-burma.html, 21 May 2015)

Naim Indah City Development Co. to construct 32-storey Yangon office tower

Malaysia’s Naim Indah City Development Berhad (Naim Indah) and Myanmar’s United Pacific Development Co. Ltd (United Pacific) have executed a memorandum of understanding (MoU) in relation to the development of a 32-storey office tower on Pyay Road in Yangon. Naim Indah is a subsidiary of the Kuala Lumpur-listed Naim Indah Corporation, which is primarily involved in property investment and timber extraction in Malaysia. Pursuant to the terms of the MoU, Naim Indah and United Pacific will establish a joint venture company under Myanmar’s 2012 Foreign Investment Law. Naim Indah will take a majority 51% stake in the new joint-venture company with United Pacific holding the remainder. The development will be located at Pyay Road, which according to land values published in October 2014 by the Internal Revenue Department, is one of the most expensive sites in Yangon. United Pacific was established in 2012 and is involved in the manufacturing, distribution and construction sectors among others.  (Source: http://www.mmtimes.com/index.php/business/15074-malaysian-firm-to-construct-yangon-office-tower.html, 17 June 2015)

Government earns US$170 million monthly from gas exports

According to new data released by Myanmar’s Ministry of Energy (MOE), Myanmar’s monthly natural gas exports are worth approximately US$170 million, with a total of 1.6 billion cubic feet per day of natural gas being exported to Thailand and China. Natural gas exports represent approximately 40% of Myanmar’s total national income. Approximately 700 million cubic feet per day (mmcfd) is exported daily from the Yadana project and approximately 325 mmcfd from the Yetagun field, both of which are located in the Andaman Sea. Approximately 360 mmcfd is exported from the Shwe Gas project in the Bay of Bengal and approximately 240 mmcfd from the Zawtika project in the Gulf of Martaban. The average monthly income is based on the average sales for the year. The MOE estimates that falling international oil and gas prices are costing Myanmar as much as US$1.5 million per day. Myanmar adjusts its gas prices on a quarterly basis, according to a regional price index. (Source: http://www.mmtimes.com/index.php/business/15034-govt-earns-us-170-million-monthly-from-gas-exports.html, 15 June 2015)

U.S. Overseas Private Investment Corporation to provide US$250 million to Apollo Towers Myanmar

The U.S. government’s development finance institution, the Overseas Private Investment Corporation, has approved up to US$250 million in financing for Apollo Towers Myanmar Ltd (Apollo). Apollo Towers Myanmar intends to use the funds to develop its network of 2500 telecommunication towers throughout Myanmar. Apollo Towers Myanmar has built 1080 towers in Myanmar to date, and has accepted an order from Norwegian telecoms operator the Telenor Group to build an additional 717.  The tower infrastructure being developed by Apollo Towers Myanmar will help Myanmar achieve its goal of 75% mobile useage by 2016.  (Source: http://www.mmtimes.com/index.php/business/15055-opic-approves-large-loan-to-apollo-towers.html, 16 June 2015)

Saha Group postpones plans to establish Myanmar industrial estate

The Saha Group (Saha), Thailand’s leading consumer-product conglomerate, has cited high property prices as the reason for its scrapping plans to establish an industrial estate in Myanmar. Saha’s Chairman, Mr. Boonsithi Chokwatana, said the group decided not to proceed with the planned project “due to the high investment costs”. Saha had planned to rent the land and then develop it in cooperation with Japanese investors and the Myanmar Government. Saha will instead continue to use its existing facilities in the Myanmar–Thai border area of Mae Sot as a Myanmar distribution centre. (Source: http://mizzima.com/business-international/saha-cancels-myanmar-estate#sthash.f47YI2zp.dpuf , 19 June 2015)

Myanmar Government to provide additional funding for the development of domestic airports

The Myanmar Ministry of Transportation has announced that the Government will provide additional funding of Kyats 2.14 billion (US$1.93 million) towards the upgrade of a number of domestic airports during the financial year ending 31 March 2016. The development of airports in Myitkyina, Putao, Bamaw and Naungmon in Kachin state will be prioritised.  Myitkyina and Putao airports received development funds of Kyats 600 million (US$542,000) and Kyats 360 million (US$325,000) respectively in the financial year ending 31 March 2015.  During the same period, an airstrip was built in Naungmon at a cost of Kyats 1 billion (US$904,000). The Government has spent over Kyats 6.9 billion (US$6.32 million) on upgrading Myitkyina, Putao, Bamaw and Naungmon airports since 2012. (Source: http://www.myanmar-business.org/2015/06/2-million-allotted-for-domestic-airport.html, 16 June 2015)

Myanmar Rice Federation to target rice exports to Europe

Representatives from the Myanmar Rice Federation (MRF) are to attend a trade exhibition in Milan in July 2015 to promote Myanmar rice in Italy and other European markets. The European Union (EU) has huge market potential for Myanmar’s rice exporters. In 2013, the EU permitted Myanmar to benefit from its Generalised System of Preferences, eliminating duties on certain Myanmar imports. One key factor preventing increased growth in Myanmar rice exports to Europe has been the low quality of Myanmar’s rice which has not met EU standards. According to the Myanmar Rice Federation Chairman Mr. Chit Khine, ongoing upgrades to domestic rice mills will help Myanmar meet the required standards. According to the Myanmar Rice Exporters Association, Myanmar rice exports in the year ending 31 March 2014 were approximately 1.2 million tons, down from nearly 1.5 million tons in the years ending 31 March 2013.  (Source: http://www.irrawaddy.org/business/burmas-rice-exporters-eye-european-market.html, 15 June 2015)

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