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Mottama Development opens new property gallery in Yankin

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Real estate developer Mottama Development Group Co. launched a new property gallery at Maha Land Centre, Kabaraye Pagoda Road to showcase its latest premium office towers, malls and public recreational zones in Yangon on June 29.

The projects are expected to contribute to Yangon’s gradual transformation into a metropolis, while creating jobs and elevating the standard of living in the city, U Yang Ho, chair of Mottama Development, said.

The government and other experts like the World Bank and ASEAN+3 Macroeconomic Research Office are projecting further economic growth in the country, with GDP in the coming fiscal year expected to hit at least 7 percent.

Focused on promoting sustainable urbanisation, the properties aim to enhance the quality of work and play for the city’s growing population when complete. The projects include:

M Tower – Located between the Hledan Junction and Pyay Road, M Tower will also be the highest steel-structure built in the city. It will also be the first Grade 5A office complex in Myanmar and certified to withstand winds as strong as 120 mph and Richter Scale Magnitude 7.5 earthquakes.

Terminal M Mall – Located near several major traffic roads and close to Aung Mingalar Bus Terminal, it will be the first suburban lifestyle and leisure mall with a lake garden for the community and ample car parking space.

Myanmar Aquarium – Targeted to be built in Kandawgyi, Myanmar Aquarium will be the first large scale, international standard aquarium in the country offering an up-close experience of native freshwater species.

Harbour Trade Tower – Overlooking the Yangon River, the sky scrapper will have 21 storeys of modern office suites with average floor area of 929 square meters and five basements with 92 car parking spaces.

HL Tower – Located near the airport on Pyay Road, the building will offer SoHo (small office home office) concept units where the floor layout could be customised to suit individual corporate functional requirements.

Mottama Development Group Co. is a subsidiary of Mottama Holdings, a Myanmar conglomerate comprising of four core business groups that include a trading group, development group, construction group and manufacturing group.

Source: Myanmar Times

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People protest against power bill hike in Yangon

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Yangon residents staged protests against the power bill hike in Pazundaung and Thaketa Townships in Yangon on July 1.

Daw Oo Oo May Thwin, a protestor said: “I have to pay an extra of Ks 500 in addition to Ks 5,000 when I see a doctor. Due to the power bill increase, the prices of both raw materials and finished goods will increase slightly. It may carry a heavy burden to the low-income families. The country will never see growth if the authorities turn a blind eye to the plight of the grass-roots.”

Ko Soe Min Than, a protest leader said: “The parliaments remain silent on the power bill hike. An increase in electricity bill has a big impact on the people. Doctors and clinics rely on electricity. The usage of electricity is essential to Yangon’s people. The government increased the electricity bill, citing that it would help implement electricity projects in villages with no electricity. Successive governments have been working to implement the power projects in the regions without access to electricity. Major power grids have been installed nationwide. The previous government planned to increase the power bill for the installation of national power grids due to the financial needs. The plan to increase the power bill did not materialize thanks to the discussions by the MPs in the previous parliament. The power bill hike amounts to torturing the public. ”

Source: Eleven Myanmar

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Centre set to help improve productivity in Myanmar

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Myanmar’s plans to raise economic productivity through improving human capital development will now be backed by the Myanmar Productivity Centre (MPC), an agency that aims to help the economy move up the value chain.

The MPC was launched on June 22 with the support of the Ministry of Industry (MOI), Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and Japan Productivity Center, with funding from the Asean Integration Fund.

MOI permanent secretary U Ko Ko Lwin said the MPC fulfills the need for capacity building in the country. “It will focus on improving productivity,” he said.

UMFCCI general secretary U Aung Kyi Soe said raising productivity levels by moving up the value chain would help the economy as goods that were being imported can be substituted with local products while at the same time help local manufacturers export more.

“We are mostly a primary commodities producer and the trade balance tilts in favour of imports. We need to raise productivity in order to export more and substitute imports with local products. The MPC’s role will be to coordinate the sharing of technology and to advice,” he said.

The government aims to boost trade by helping micro, small and medium enterprises move up the value chain. The setting up of the MPC would be a boost in helping these businesses, which can benefit from not only technology-sharing but also training and advice.

Myanmar mainly exports agriculture, marine, mineral, forest and manufacturing products. According to Ministry of Commerce data, from October 2018 to April 2019, exports were valued at US$9.8 billion while imports were valued at US$10 billion.

Source: Myanmar Times

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Yangon Region losing electricity units worth over K1.6bn yearly

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Government suffers losses of K1.6 billion per year as each of 45 townships in Yangon Region see loss of electricity units worth about K30 million every month, said MP Yan Aung for Mingalar Taungnyunt Township Constituency No (2).

The MP made the remark in his question about any plan to prevent electricity unit losses and in the region during a session of the Yangon Region Parliament on July 1.

“Due to technological weaknesses and human errors, malpractices occur, leading to financial losses every year. For example, Dawbon Township suffers a loss of K28 or K29 million monthly. According to released figures, there is a loss of about K37 million or K38 million a month in Pabedan Township. Calculating losses in 45 townships, there is a loss of K30 million in each township. As there are losses of 13,500 units, we are losing K1.62 billion a year. This is for Yangon Region only. A huge sum of money will be lost across the country,” said MP Yan Aung.

Yan Aung then suggested about the change of analog system into AMI (advanced metering infrastructure) digital system.

“There were cases in which electricity bills cost only K500 or a little though a lot of units have been used. Even some staff members approached some of my friends how they could help them reduce electricity charges for them,” said the MP.

The government has announced that electricity charges will increase starting from July.

Source: Eleven Myanmar

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European car makers express interest in Myanmar

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The Czech Republic has announced interest to assemble Skoda cars in Myanmar, U Thaung Tun, Union minister for Investment and Foreign Economic Relations, said last week.

“The Czechs sold the Skoda in Myanmar in the past and now they’ve made an offer to start production here,” U Thaung Tun said at an investment promotion event held on June 26 in Nay Pyi Taw. He added that Hungary has also voiced interest in starting similar operations in the country.

Hungary and Czech Republic made the offers during State Counsellor Daw Aung San Suu Kyi’s Europe visit last month, he said. However, more information on assembling Skoda vehicles in Myanmar was not provided.

Hungary has offered to manufacture electric cars in Myanmar and the Ministry of Industry will cooperate, said U Aung Naing Oo, permanent secretary of the Ministry of Investment and Foreign Economic Relations. “Hungary is making plans to cooperate with the Ministry of Industry. It will be an assembly plant,” he said.

U Ko Ko Lwin, permanent secretary of Ministry of Industry, said they will import three cars on a trial run basis. “We’ll import three cars and carry out a test drive with them in Myanmar to gauge their performance. After that, we’ll discuss how to cooperate,” he said.

“We have actually received many enquiries from foreign countries to invest in Myanmar and interest in producing automobiles is among the popular questions asked, not just by the Japanese and other Asians but also by the Europeans,” U Thaung Tun said.

On May 30, Toyota Motor Corporation announced that it will establish Toyota Myanmar Co Ltd in Thilawa Special Economic Zone as its first vehicle production company in Myanmar, where it will locally produce the Hilux from February 2021.

Investment is expected to amount to US$52.6 million. It intends to assemble around 2500 Hilux vehicles using the semi knock-down method and will hire around 130 employees.

Source: Myanmar Times

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Myanmar shut North Korean restaurant in 2018 due to sanctions, government confirms

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Questions over two countries’ military ties raised in recent UN report remain unanswered, however A North Korean restaurant in Yangon, Myanmar thought to have closed in 2018 due to international pressure was closed by the government in accordance with UN sanctions measures, according to a report to the UN made public in the past week.

The Pyongyang Koryo Restaurant “was instructed to close down” in early 2018, an implementation submitted by the government of Myanmar to the UN’s 1718 committee, said.

Stay permits for 21 North Korean nationals were not allowed to be extended, it added.

“All of those nationals of the Democratic People’s Republic of Korea left Myanmar on 25 March 2018.”

The report was Myanmar’s second submitted to the UN committee in charge of sanctions on North Korea, dated June 18 but only released late last week.

It did not, however, include language explicitly stating all North Korean workers in the country had been repatriated, as required by December 19 this year under sanctions passed in late 2017.

Outlets including the BBC’s Burmese service and The Irrawaddy reported last year that the restaurant was closed in early March 2018, and that a U.S. embassy spokesperson connected the closure to pressure from Washington.

Though the move was widely speculated to have been due to be linked to sanctions, last week’s UN implementation report confirms the reasoning, while reiterating Myanmar’s claim to be “fully committed to the implementation of Security Council resolutions.”

It also said “the Government of Myanmar has instructed all relevant ministries, agencies and regional governments to fully implement the provisions of both resolutions [passed in late 2017] by issuing a presidential order dated 15 January 2018.”

Questions remain, however, over other areas of Myanmar’s sanctions compliance not mentioned in the short implementation report.

According to the latest Panel of Experts (PoE) report released by the UN’s 1718 Sanctions Committee, the Panel was as of March this year still awaiting evidence from Naypyidaw backing their claim that military cooperation with Pyongyang had truly ceased.

In the country’s first implementation report submitted to the UN committee in October 2017, Myanmar detailed its expulsion of a diplomat working in the DPRK embassy in the country who was also found to be working as a North Korean weapons dealer.

The government said they identified Kim Chol Nam as a representative of the sanctioned Korea Mining Development Trading Corporation (KOMID), which was designated by the UN in 2009 as the North’s “primary arms dealer.”

That followed Pyongyang’s recall of the DPRK’s ambassador to Myanmar Kim Sok Chol in March 2016 after he was sanctioned by the U.S. and South Korea – also for doubling as an agent for KOMID.

Then, according to the 2019 PoE report, Myanmar sent the Panel a letter in March 2018 claiming there “had been no military cooperation” between the two countries since October 2016 and that “no Myanmar technicians are stationed in the DPRK at present.”

But the PoE said that Myanmar was yet to provide answers to requests for evidence of both “the return of all Myanmar technicians from the [DPRK]” and vice versa.

Further details on any remaining relationship between KOMID and Myanmar were not mentioned in the latest implementation report.

The report did, however, go on to say that Myanmar is a “strong advocate of nuclear disarmament” and that it supports the ongoing denuclearization negotiations between the U.S. and the DPRK.

Myanmar and North Korea continue to maintain comparatively close ties, with current DPRK ambassador Jong Ho Bom meeting director general of the foreign ministry’s political department U Soe Han twice since April.

A message from the North’s foreign minister Ri Yong Ho to his counterpart Aung San Suu Kyi in January this year said the “long-standing friendly and cooperative relations between the two countries would further develop,” according to the Korean Central News Agency (KCNA).

The two have not exchanged high-level delegations since September 2015, however, when then-foreign minister Ri Su Yong led a delegation to Myanmar.

Source: NK News Org

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Woman to head Yangon’s new ministry

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MP Daw Moe Moe Su Kyi has been appointed head of the new Yangon Ministry of Immigration and Human Resources, which was formed in Yangon last week.

The Yangon Region Hluttaw (assembly) announced the appointment on Tuesday.

The regional assembly approved the appointment of Daw Moe Moe Su Kyi, who was nominated by Yangon Chief Minister Phyo Min Thein, without any objections.

“The region has many requirements and we expect tasks will be carried out more efficiently as we have an extra minister,” Regional Karen Ethnic Affairs Minister Daw Naw Pann Thinzar Myo told the media on Tuesday.

She also said that the formation of the new ministry at the regional level was proposed by the Myanmar government because it is needed to serve the needs of the public.

During her recent trips to different parts of the country, State Counsellor Daw Aung San Suu Kyi received feedback and suggestions from the public that the government needs to do more to develop the country’s human resources.

Daw Naw Pann Thinzar Myo added that Daw Moe Moe Su Kyi takes up her duties immediately and has also been provided with facilities for her responsibilities.

Daw Moe Moe Su Kyi is also the secretary of the Hluttaw Committee for Parliamentary Rights and Government Guarantees.

She is a member of the National League for Democracy who was elected in the 2015 general election as MP for Mayangone township constituency 2.

The minister will have to handle the affairs of immigration and developing human resources, government officials said.

“The new ministry will handle issues pertaining to citizens’ affairs, labour, and human resources,” Mingalar Taungnyunt township MP U Hla Htay said.

He added that Yangon’s regional minister for Rakhine Ethnic Affairs, Labour, Immigration, and Population was effectively handling two portfolios, and the setting up of the new ministry is timely.

“The tasks under the current organisational structure could be carried out better if separate ministries were formed,” said U Hla Htay.

Last month, the Mandalay regional government announced that it would also set up such a ministry, while Rakhine State’s regional assembly voted against the proposal.

Before the setting up of the new ministry, Yangon’s regional government had eight ministries: Security and Border Affairs; Planning and Finance; Agriculture, Livestock, Forestry, and Energy; Electricity, Industry, and Transportation; Municipal Affairs; Social Welfare; Karen Ethnic Affairs; and Rakhine Ethnic Affairs, Labour, Immigration and Population.

Regional Minister U Zaw Aye Maung had to handle the duties of the Rakhine Ethnic Affairs, Labour, Immigration and Population Ministry, which was effectively two portfolios in one.

Source: Myanmar Times

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Mandalay, Nay Pyi Taw courts implement case management plan

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Fifteen courts in Mandalay and Nay Pyi Taw are implementing a case management plan to try to restore the public’s faith in the judicial system.

Part of the Union Supreme Court’s Judicial Strategic Plan for 2018-22, the three-part programme will carry out five action plans.

A pilot project will be carried out in six townships in Mandalay and seven townships in Nay Pyi Taw’s Dekkhinathiri district. The President Office has instructed relevant agencies to cooperate with the project, said Mandalay Region High Court Chief Justice U Soe Thein.

“Case management is an arrangement to ensure cooperation between plaintiffs, attorneys and judicial staff with technological support from the beginning to the end of a case. We are trying to make courts reliable and trustworthy for the public. We are also trying to remedy the losses of each litigant. Modern crime management processes will save time,” U Soe Thein said.

The Union Supreme Court first published a Judicial Strategic Plan for 2015-2017 with the help of the US Agency for International Development’s Promoting the Rule of Law Project. A pilot project was carried out at courts in Hlaing Tharyar township in Yangon, Kayin State and Bago Region. There were good results, so it was expanded to Mandalay, Sagaing, Magwe and Ayeyarwady regions.

The current Judicial Strategic Plan is aimed at expanding the project step-by-step across the nation.

The plan aims to provide justice for all and promote public trust and confidence in the courts and rule of law.

The case management plan is aimed at giving clients and lawyers enough time to make preparations for trial, and ensuring transparency in the judicial process.

Crimes will be categorised and brought to trial within a specific time. Crimes that require immediate action will be brought to trial within 90 days, cases filed by police will be brought to trial within 180 days, and complicated cases within 270 days.

Implementing the plan will include conducting court surveys, setting up crime-tracking systems, case management, monitoring and reporting, said Daw Khin Khin Cho, staff officer of the Mandalay Region High Court.

“A survey of public satisfaction with the court system was conducted with the help of trainee lawyers and law students in June. It included ten questions which are used in international surveys, and its aim was to find the reasons for delays in cases, and a solution,” she said. – Translated

Source: Myanmar Times

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MoE, KfW sign agreements on funding nearly euro 10 mln for TVET reform

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Department of Technical and Vocational Education-DTVE of Ministry of Education and German Development Bank (KfW) signed a financing agreement and other separate agreements on funding nearly euro 10 million on implementing “TVET Reform Programme Phase II” at the ministry in Nay Pyi Taw yesterday.

Speaking at the Signing Ceremony of “TVET Reform Programme Phase II” between Ministry of Education and German Development Bank (KfW), Union Minister for Education Dr Myo Thein Gyi said implementation of the first phase of TVET Reform Programme was underway at Government Technical Institute (Insein, Shwepyitha) and Government Technical High School (Ywama), and the second phase could be implemented soon.

It was of great assistance for TVET Reform as it was the programme assisting with modern teaching/leaning materials for the institutes, schools and training centres of Department of Technical and Vocational Education-DTVE, the Union Minister said.
He then added that the ministry was developing TVET sector in Myanmar to produce human resources needed for related industries and to create more job opportunities.

Then, Dr Katharina Spiess, the Head of Development Cooperation of KfW, and Dr Christine Heimburger, the Director of East Asai and Pacific of KfW, delivered speeches.

Afterwards, Dr Aye Myint, the Director-General of Department of Technical and Vocational Education, and Dr Christine Heimburger, the Director of East Asai and pacific of KfW signed agreements on funding nearly euro 10 million.

With the systematic use of some euro 8 million fund for teaching and learning materials, the Ministry of Education’s Department of Technical and Vocational Education will implement promoting learning opportunities and quality teaching at Government Technical Institute (Mandalay), Government Technical High Schools (Mandalay and Taunggyi), and Government Technical High School and Technical Promotion Training Centre (Baelin).

Faculties of the institutes and schools will also be trained for their promoting capacity with the use of teaching materials and learning materials.
— MNA

Source: The Globle New Light of Myanmar

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Flood management in Yangon has improved 75%: YCDC member

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Flood management measures are being undertaken in Yangon Region and there has been a 75-per cent improvement in the urban drainage system compared to last year, said U Min Han, Yangon City Development Committee member in charge of drainage and sewage management.

He made the remarks at a press conference on YCDC’s performance, held on 1 July at the Yangon City Hall.
“We have been making efforts to improve the urban drainage system in 33 townships of Yangon Region. This year, there has been a 75-per cent improvement in the drainage system,” said U Min Han.

“We need machines for flood management. Machine purchases were previously handled by YCDC’s Engineering Department (Roads and Bridges). Now, the Yangon Mayor and our department are planning to purchase the machines,” he added.
A long-term flood management plan is being implemented with the assistance of the World Bank, said Daw Hlaing Maw Oo, secretary, YCDC.

“The drains in flood-prone wards in Yangon Region release untreated water directly into rivers and streams. We need to be prepared for any possible rise in rainfall, sea level, and tide. Therefore, we are implementing flood management in line with the changing climate conditions, with the assistance of our development partner, World Bank,” she said.

Source: Global New Light of Myanmar

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Preparing for the next disaster

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Struggling to survive in a storm, U Win Aung and his family climbed a tree and clung on for their lives in Pyinsalu, a town on the Ayeyarwady River in Labutta township, Ayeyarwady Region. His relatives fell, one after another, into the water and never surfaced again, but he couldn’t do anything except feel desperately sorry for them.

Pyinsalu was among the areas severely hit by Cyclone Nargis in 2008. Although it happened more than a decade ago, the storm is stuck in U Win Aung’s memory and he remembers every detail of that sad story.

“One worker dived into the place where his son sank but he also never came back up. I saw my younger brother and his wife on an upside-down boat. As my sister-in-law couldn’t swim, he pushed her up to a big branch but when a strong wind blew, she was taken away into the water. My brother jumped into the water where his wife fell in and both disappeared. When I recovered from the shock, I found that one of my nephews was still alive,” he said.

U Win Aung shared his tragic story at the Yaw Min Gyi Zayat talk show on climate change, “Climate Action: More Urgent Than Ever,” put on by the Institute for Strategy and Policy – Myanmar at a Yangon hotel on June 22.

Hundreds of thousands of people died in Nargis, and the storm caused US$13 billion (K19.67 trillion) in damage – one of the worst disasters Myanmar has ever faced.

Yet the country continues to experience natural disasters every year. In fact it is the second most disaster-prone country in the world, and experts urge the government to adopt measures to make Myanmar more resilient to climate change.

“Of all the things that hinder Myanmar’s development, the most dangerous are natural disasters brought about by climate change. Some have said that Myanmar can’t achieve development if it is unable to cope with these challenges,” U Tun Lwin, a meteorologist, said.

Volatile rainy season

U Tun Lwin said Myanmar’s weather started changing about 50 years ago. Myanmar’s monsoon season is getting shorter, he said. “It now starts later and ends earlier.” Typically, the monsoon begins in mid-May and ends in mid-October, but now it begins at the end of May and ends in September.

Due to the changes, the rainy season is about 40 days shorter. Also, there are fewer storms during the monsoon. In the past, at least 10 storms formed in the Bay of Bengal each year, but now there are 40 percent fewer storms, he said.

The longer periods before and after the monsoon may result in extreme weather such as thunder, lightning, tornados, thundershowers and hailstorms in Myanmar, he said.

“Fatalities caused by lightning are increasing,” he added.

Climate change is responsible for a wide array of extreme weather, such as drought, cyclones, strong winds, unstable precipitation, record-breaking rainfall, flooding and heavy seas, extreme temperatures, and rising sea-levels, according to the Myanmar Climate Change Alliance.

Floods, the second largest natural disaster after Cyclone Nargis, occurred in 12 regions and states in 2015, with Sagaing, Magwe, Chin and Rakhine suffering the most. Roads, bridges and houses were damaged and thousands of people died. More than 1.4 million acres of farmland were flooded throughout the country, causing up to K160 billion in damages, according to the government. Hundreds of thousands of people were also affected by floods in 2016, 2017 and 2018.

“Natural disaster occurred only once a year on average in the 1980s. From 2008, when Nargis occurred, to 2018, there were 42 natural disasters, or about four a year on average,” Daw Myat Moe Thwe, director of negotiation and research at the Ministry of Social Welfare, Relief and Resettlement’s Department of Disaster Management.

The 2016 El Nino set new high temperature records throughout the country, but this year, more than 20 weather stations recorded new heat records, among them Yangon and other cities.

Health risks

Weather changes affect health as well, medical experts said. Due to extreme heat, 1482 people had heat-related illnesses and 260 people died in the summer of 2010.

Dr Thurain Hlaing Win, who participated in the talk show, said that environmental damage is increasing health risks.

“Hospitals are seeing more patients, which is a negative sign. According to studies, most health problems in developing countries are caused by weather,” he said, adding that this year many people suffered heatstroke.

“Heat-related problems may get worse. Floods occur in the rainy season and cause shortages of clean water. There are problems with food hygiene, which can cause contagious diseases. We haven’t solved any of these yet,” he said.

Daw Myat Moe Thwe said a 2018 survey found that natural disasters cause $190 million in damage per year.

On June 5, the National Environmental Policy and National Climate Change Policy and Strategy were published. The Natural Disaster Management Law has been enacted as well, aimed at training people to live with and adapt to weather changes.

The National Disaster Management Committee, led by the vice president with a K20 billion annual budget, is preparing for natural disasters, emergency support and rehabilitation work, she said.

“But awareness-raising alone isn’t enough. Shelters are being prepared in cooperation with civil administration groups,” said Daw Myat Moe Thwe, adding that 220 disaster emergency shelters have been built in states and regions, and the number will be increased if needed.

While the movement to prepare for natural disasters has become increasingly important, help is still needed for local residents like cyclone survivor U Win Aung, who said that he would particularly like to have access to weather news in a timely manner.

“If we local people are offered 100 phones each, only ten people will know how to use them, and those who know how to use them will only get fake news. I would like the experts present here (at the talk show) to help us to receive true news,” U Win Aung said.

Source: Myanmar Times

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Monywa to produce electricity and fertilizer from waste

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The Japanese corporation Fujita is conducting a feasibility study on implementing production of electricity and fertilizer from waste in Monywa, according to Kyaw Myo Win, chairman of Monywa Township Municipal Committee.

The Osaka based Zaibatsu will provide 40 percent through its Myanmar branch while the remaining 60 percent will be provided by the regional government.

“The project is in its initial stage. They are just conducting feasibility study. From waste disposal, they will produce fertilizer and then electricity,” said Kyaw Myo Win, chairman of Monywa Township Municipal Committee.

Monywa produces about 168 tons of garbage on a daily basis. The current system of waste disposal will damage the environment with limited space for waste dumps in the long run. This problem will become a huge issue in the future. For that reason, a feasibility study will be conducted to first to find out if a waste disposal system will be built in the first place with the company looking to conduct a field inspection of the three waste dumping areas.

Waste that comes out of Monywa include bio-waste from kitchens, other assorted rubbish like plastic bottles with the rest coming from agro businesses. The waste is currently being dumped in three separate areas, which have limited space and pose risk of environmental pollution.

Source: Eleven Myanmar

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Power purchase tenders called for summer 2020

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The Electric Power Generation Enterprise (EPGE) under the Ministry of Electricity and Energy (MOEE) has called for purchase tenders at five power projects with the aim of producing over 1000MW of energy in time for summer next year.

The invitation comes after State Counsellor Daw Aung San Suu Kyi last week officiated the opening of the Minbu Solar Plant project, Myanmar’s first commercial solar-powered plant, in Magwe Region.

In Minbu, Daw Aung San Suu Kyi said an additional 1200MW of power will need to be generated over the short term to fulfill demand in the coming year.

This will be purchased from existing gas-fired plants as well as floating power plants, U Ye Tun Zaw, an engineer for the MOEE, told The Myanmar Times.

“Now that the power tariffs have been raised, more attempts will be made to minimise the number of blackouts during the summer of 2020. Over the short term, this will involve buying additional power,” he said.

The MOEE will buy 900MW of power from three liquefied natural gas (LNG) plants in Kyaukphyu, Thanlyin and Thaketa and 140MW from two gas-fired plants in Kyun Chaung and in Ahlone over five years, according to EPGE. The ministry will supply gas for the latter two projects on a pass-through basis.

To distribute the purchased electricity, five power stations will be prepared Kyaukphyu, Kyun Chaung, Ahlone, Thanlyin and Thaketa as locations nearest to the national transmission lines.

Site visits will be arranged for Ahlone, Kyaukphyu, Thanlyin and Thaketa and tender proposals must be submitted no later than July 29.

Source: Myanmar Times

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SMVTI to send ten students to Singapore as interns

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Singapore-Myanmar Vocational Training Institute (SMVTI) will send top ten Myanmar graduates to Singapore as interns to work in Singapore for six months.

“Here, 70 percent is practical and 40 percent is tutorial. In the six months of its course, top students are selected and sent to Singapore as interns,” said Dr. Thein Thein Aye, principal of SMVTI.

SMVTI is a joint project between Singapore and Myanmar governments. It was proposed by Singapore’s president Tony tan during his State visit to Myanmar in April 2013. A MOU was signed between the two governments in April 2014. SMVTI aims to support Myanmar human resource development, particularly in the area of vocational skills in demand for Myanmar’s youth and adult learners.

Courses such as front office operation, housekeeping, restaurant operation, retail, Electronics (computer networking), electrical technology, electrical installation, resident air-conditioning, built in fixtures and equipment, general welding and Mechatronics (basic services) were conducted and the duration is 6 months.

Every year, top graduates were selected and send as internship to Singapore and it is the 6th time to send internship. Only 40 students are accepted for each course. About 90 percent of those graduated from SMVTI were employed at local companies. Those passed the matriculation exam can apply SMVTI and upon completion, certificate granted from ITE, Singapore will be handed.

Source: ELEVEN Media Group

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Residents say electricity rates should be lowered in off-grid areas

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Residents in gas-producing regions like Tanintharyi are questioning why they still have to pay higher rates instead of being covered by the national grid. The government hiked electricity tariffs last week, and the new rates took effect on July 1.

While consumers of residential and religious buildings will be charged the previous rate of K35 per unit for up to 30 units, they will be charged higher rates as their consumption rises. Non-residential consumers, including businesses, embassies, factories and government buildings, will also pay rates that increase based on usage.

However, the government-mandated rates relate to areas covered by the national grid. Meanwhile, some 55 percent of Myanmar remains outside the grid and consumers in these areas, both households and businesses, have to resort to buying electricity from private firms at higher rates. According to Ministry of Electricity and Energy (MOEE) data from 2018, only 16pc of households in Rakhine State and Tanintharyi Region, both gas-producing regions, have access to electricity from the grid, for example.

U Than Oo, an activist who hails from Tanintharyi, said even though electricity tariffs even in areas not covered by the national grid has gradually become lower, it remains high when compared to grid-covered regions like Yangon. He said the national grid should be extended to other off-grid areas as well so consumers don’t have to pay the higher rates.

Ko Myo Aung, a Dawei, Tanintharyi resident, said rates for electricity varies from district to district and can reach as high as K800 per unit. Dawei itself has a tariff of K250 per unit, from K490 back in 2009. Myeik pays K390 while Kawthoung, the southernmost point in Myanmar pays K440. Residents of Hopan, in the north of Shan State, said they pay K220 per unit while those in Homalin and Hkamti townships in Sagaing Region to the northwest pay K400 to K500 per unit.

U Than Win, another Tanintharyi Region resident, said the extra revenue from the government’s raising of the electricity tariff rates, if used for development purposes seems fair but said the government should review the tariff rates that residents in off-grid regions have to pay.

According to data from the Ministry of Planning and Finance, the government supplied electricity to the public at a loss of K630 billion in the 2018-19 fiscal year, up from K507 billion in the 2017-18 fiscal year. MOEE data showed that for the 2019-20 fiscal year, a loss of more than K500 billion has been estimated.

The World Bank said in a June report that electricity consumption in Myanmar will grow at an average annual rate of 11pc until 2030. – Translated

Source: Myanmar Times

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Mandalay labor union campaigns for higher wages following electricity bill hike

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On the first of July, a labor union – Myanmar Industries, Crafts and Services (MICS) Trade Union Federation – took to the streets for increased wages. The campaign, titled “Raise Wages not Electricity Prices”, was demonstrated in Pyi Kyi Than Kyun district, 60th street, and Kyan Sitt Tar streets of Mandalay.

Low-wage primary and secondary sector laborers make up the primary bulk of the union.

Thet Hnin Aung, the secretary of this union commented that “At a time where wages and minimum wages are so low, the government raises electricity prices almost threefold. For us workers in the industrial and manufacturing sectors, this is especially difficult.

While prices for almost all other goods skyrocket, our wages remain static. Necessities and land prices have increased beyond our reach. My own rental apartment, for example, used to be 45,000 to 50,000 kyats but now it has increased to 70,000 to 75,000 kyats. In contrast, our average salaries are between one and a half to two lakhs. And those who earn around two lakhs have to work overtime. Just our rent accounts for around one third of our salaries. We all have already very low disposable incomes.”

He continued, “Furthermore, the raise was not gradual. It was a shock. Instead of raising the energy prices continually or gradually so people could adjust, they increased the rates two to three times overnight.

One of the reasons that energy prices were increased was because Myanmar’s energy prices were lowest in ASEAN. Yet, Myanmar’s average wages (GDP per capita) does not come close to the ASEAN average. But, now the electricity prices are now comparable to the prices of other ASEAN countries. This is a completely unfair and misguided comparison.”

Thet Hnin Aung points out, “When the previous government increased prices, the whole country stood up in protest—from Yangon to Mandalay. Now even when the current government raises prices almost three times the original, people are not showing strong opposition. We don’t want to be on the streets either, but we have to stand because nobody else is going to. Through the media and interviews like this, we hope to send our message and situation to the ministries. If electricity bills are to increase, wages should be increased as well. It is the government’s responsibility to implement policies to increase labor wages and give us a better standard of living.”

“It is becoming more difficult to support my family. Those who depend on me are affected most. Now that prices of groceries and other basic necessities have increased, this electricity cost hike is the last blow. I now have to work two jobs to be able to support my family,” stated Su Su Naing, a worker at a shoe factory in Hlaing Thar Yar Industrial Zone.

Source: ELEVEN Media Group

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US soybean planting experiment scheduled

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The Ministry of Commerce will grow high-yielding US soybeans in Shan State’s Nawngcho township as an experiment prior to introducing more widespread planting of the crop.

The ministry’s deputy director-general for consumer affairs U Aung Maun said native soybean species produce between 12 and 20 baskets per acre compared to US species, which can produce between 30 and 70 baskets.

“There’s an opportunity here for both domestic consumption and exports if we can grow more soybean,” he said, adding that Myanmar could sell more soybean if China continues to halt US soybean imports since June after slapping a 25pc tariff last July due to the trade dispute with the US.

U Aung Maun said that the first batch of US soybean would be grown as an experiment starting this October while a soybean forum has been planned to promote the US crop. A meeting was also held with the local Pyithu Hluttaw representative and the Myanmar Edible Oil Millers Association.

He said that financing and the small acreage owned by farmers were problems that needed to be overcome to introduce this new soybean species. “It is difficult for farmers who own small plots to change species,” U Aung Maun added.

Of the 365,000 acres planted with soybean throughout the country, some 200,000 acres can be found in Shan State, where in the 2017-18 fiscal year, there were 185,729 soybean farms. The productivity in the farms throughout the country came to 1.161 bushels per acre on average.

Soybean farms can mainly be found in the southern and eastern parts of Shan State as well as Kayah State. – Translated

Source: Myanmar Times

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FMI posts record profits for FY 2019

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YANGON—First Myanmar Investment Public Company Limited (FMI) posted revenues of 297.7 billion kyats (US$196.3 million) for fiscal year 2019, a 36-percent increase over last year, the company’s chief operating officer announced at a press conference over the weekend.

FMI—a part of the Yoma Group of companies—attributed the growth to strong performances from its Yoma Bank and Pun Hlaing Siloam Hospitals holdings. FMI Chief Operating Officer U Tun Tun said gross profit more than doubled from the previous year, reaching 110.7 billion kyats.

Net profit, however, fell 41.7 percent, to 14.4 billion kyats, because of a 49.7 percent increase in expenses—104.7 billion kyats this past year—on “initiatives to facilitate the modernization and long-term expansion” of the company and its various subsidiaries, according to a press release from the investment company.

In prepared remarks released before the press conference Saturday, U Tun Tun said the company had “realigned and refined” itself, “disposing of non-core and underperforming assets which provided us with the capital and capacity to strengthen our core businesses.”

According to FMI, spending included, among other things, an increase in employee pay and marketing and promotional expenses.

Yoma Bank saw a revenue increase of 36.5 percent over last year, taking in 254.5 billion kyats—primarily in interest income from a growing loan book, including agricultural loans. U Tun Tun said that the company’s goals looking forward are focused on small loans to small and medium-sized enterprises and banking digitization.

Ninety-one percent of FMI’s revenue came from the financial services sector for fiscal year 2019.

Pun Hlaing Siloam Hospitals saw revenues of 24.9 billion kyats, a 32.6-percent increase over last year. The company attributed the hospital’s growth to an increase in patients and a strong performance in ancillary services.

Healthcare accounted for 8.9 percent of the company’s revenue for the fiscal year. FMI acquired a 70 percent stake in SEIN Hospital, a 100-bed capacity hospital in Taunggyi, this year.

The company’s core businesses include financial services, real estate, healthcare and tourism.

In real estate, U Tun Tun expressed optimism about the company’s City Loft project, a residential development targeting Yangon’s under-served middle-income market. The City Loft strategy is to combine competitive pricing with long-term mortgages to offer units to those traditionally priced out of the property market.

It may take some time, he said, for first-time homebuyers to get comfortable with taking a long-term mortgage.

“In Myanmar there are usually two ways people buy a house. Either your parents buy it for you, or you get rich and buy one,” he said, but he remained confident that this will change, and that City Loft mortgages will help more people to start building wealth.

FMI, a subsidiary of Surge Pun & Associates, is one of Myanmar’s first publicly traded companies, founded in 1992. For the past two years running, the company has placed in the number one and number two positions at the top of the Myanmar Center for Responsible Business’s Pwin Thit Sa report on corporate governance and transparency.

Source:The Irrawaddy

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Colliers Myanmar Mandalay Property Market Review 2018 and Outlook 2019

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Summary & Recommendations

Mandalay City continues to be a promising investment destination with big-ticket infrastructure and property projects being set in place. Township developments such as the Mandalay Resort City (NMRC), and Ye Dagun Taung mixed-use development, among others, are just some of these projects that will continually shape the city’s growing property landscape. Also, linked between Kyaukpyu of Rakhine State and Ruili of Yunnan Province, Mandalay is a major trading hub, pivotal to industrial growth in upper Myanmar going forward. Additionally, the recent easing of visa policy followed by the rise in flight routes from China, should sate demand in the hotel sector for both leisure and business travelers alike. In the meantime, Colliers recommends for investors to consider exploring business on industrial activities, while residential developments must be geared towards competitively priced low-rise apartments or landed residential communities.

BURGEONING CONDOMINIUM MARKET

The demand for landed residences and low-rise condominiums are preferred as high-rise residential living remains at a nascent stage. However, the success of Garden City in 2017 drove many developers to follow suit. Successful condominium projects designed with two and three-bedroom units, of sizes ranging between 60 and 100 sq meters, appear to be popular formats. Colliers views this growing demand of low and mid-rise buildings as a significant shift in the burgeoning condominium market. In the meantime, our revised database reveals that Mandalay City witnessed over 1,000 units launched in 2017, exceeding the number marked the year before by 158%. The additional supply was mainly driven by Hnin Si Condo of NTL Construction Group, Garden City, MICT Condominiums, Satetara Mahi Estate and Mandalay Commercial Complex by New Star Light and C.A.D Construction Co., Ltd. No new projects were introduced in 2018 as developers focus on their remaining inventories. For the first time since 2004 when condominiums were first introduced in Mandalay, the existing number of units in the Inner City Zone reached more than 400, surpassing that in Downtown.

At present, Colliers observes that the market is almost fully represented by two and three-bedroom units. The average household size in Mandalay being larger than the national average, as well as the prevailing preference over landed residences with multiple bedrooms, are perhaps attributed to the resulting unit configuration. As Garden City debuted in 2017 with more than 600 units, the total supply almost doubled and the selling prices continued to correct further downward. At the end of 2018, the average selling price was at USD 1,023 per sq meter and the cumulative take-up rate stood at 74%.

According to Myanmar’s Urbanization report by World Bank, 12% of all internal migrants across Myanmar, not least those from nearby districts such as Myingyan, Pakokku and Meiktila, moved to Mandalay, the second largest destination after Yangon due to better economic opportunities. As a result, Mandalay’s population of 1.2 million is expected to increase by 4% every year and the demand for quality housing will continue to rise moving forward.

The abundance of developable land in Mandalay allows many developers to continue building condominiums with bigger unit configurations. Despite that, the absence of competitively priced quality buildings especially smaller configurations has left the mid-market segment relatively untapped in Mandalay. Given the development strategy drafted by the Ministry of Construction which envisions hotel and industrial zones to be concentrated in Southern and South-Western ends of the city, the housing requirement for the inhabiting labor force is expected to increase even further. Coupled with the already existing Mandalay International Airport and the highway infrastructure linking Nay Pyi Taw and Yangon, future residential and commercial developments are likely to proliferate in the southern part of the city. Going forward, Colliers sees more demand for newly planned residential and business districts involving low and mid-rise buildings. In particular we recommend developments to adopt outdoor amenities, pedestrian promenades and natural green spaces. To entice buyers, the value proposition should be geared towards integrating quality facilities alongside retail components, a concept yet to materialize in Mandalay.

MAJOR COMMERCIAL PIVOT IN UPPER MYANMAR

In 2017, China proposed building a railway linking Yunnan and Mandalay as a part of the China-Myanmar Economic Corridor program, a large-scale infrastructural plan under the broader Belt and Road Initiative (BRI). The construction of Yunnan section on China side has already started and Colliers notes that a feasibility study for the Muse-Mandalay segment has been submitted to Myanmar Railways and Ministry of Transport and Communications. Once implemented, the railroad will be crucial in improving the regional connectivity as well as bringing tourism and retail receipts to Mandalay. In the long run, Mandalay’s retail sector has a lot to gain from being one of the major commercial hubs along the railroad with improved trade, more efficient logistics and growing industrial activities.

According to Ministry of Planning and Finance, Mandalay’s gross domestic product (GDP) is anticipated to increase by about 13% in 2019. The sustained GDP upturn is likely to fuel growth across the full range of retail categories and consumer products in Mandalay. As of 2018, the city witnessed 12,000 sq meter of additional retail space to the total supply with almost 10% yoy growth. This increase stemmed from the completion of Central Point in Q3 2018 which is also the largest retail space to have opened in the inner-city area. The total retail space will remain the same until the completion of Mandalay Commercial Complex in Q4 2020. Meanwhile, shopping malls in the outer city area are still non-existent.

Despite the flight to quality retail spaces, Colliers recorded a healthy citywide occupancy rate which averaged at 80%. With movie theatres supplementing the overall shopping experience, malls such as Ocean Super Center, Mandalay Yatanar Mall, and the newly opened Central Point led the occupancy providing an ideal retail-entertainment mix. The occupancy of some poorly maintained retail centres continued to witness declines as low as 30% level. To mitigate that, Colliers advises operators and owners to adopt effective property management measures and embark major refurbishment and redevelopment. Given the opening of Central Point, the citywide average rental rate corrected further downward to USD19 per sq meter. We expect this trend to continue in 2019 due to adjusting rates in older developments.

SMALL HOTEL ROOMS APPEARS MORE PROMISING

In addition to the promising investment potential, Colliers also sees opportunities for more growth in Mandalay’s hotel market. Colliers found that the total number of airlines flying directly between Mandalay and China has increased from five to nine by the end of H2 2019. The data published by Ministry of Hotels and Tourism in Q1 2019 reveals that the number of tourist arrivals to Mandalay region has reached over 240,000 with 70% yoy increase of Chinese tourists, an indication that the recent easing of visa requirements has been relatively successful.

Although the rise in number of Chinese travelers has buoyed the overall arrival in the previous years, the average length of stay and expenditure will be lower than that of western visitors. Under the current “Look East” policy coupled with cheap flights, even more Chinese, Koreans and Thai tourists are expected to drive the ongoing tourism upsurge. Given that majority of the future hotel projects and investments in Mandalay such as Pullman Hotel by New Star Light and MGW Intercontinental by Mandalay Golden Wings are still mostly geared towards the upper-scale segment, Colliers encourages both hoteliers and developers to venture into the untapped mid-scale category that would be more bankable with current tourism landscape.

As tracked by Colliers, no new upper-scale hotel was launched in 2018. Although the total supply remained unchanged at around 1,200 rooms, a total of four upcoming projects, collectively representing approximately 750 rooms is anticipated in 2019. Meanwhile, the average daily rates of upper scale hotels in 2018 trailed a downward trend varying between USD70 and USD165. The citywide average occupancy rate increased by 10% yoy to 62% while hotels with smaller room configurations performed better due to altering visitor profile and predilection. Colliers urges hoteliers to either adjust the rates or push for differentiation in terms of both services and offerings that are geared towards the rising number of Asian visitors. Initiatives that would help hotels embrace the current visitor trend would include aligning marketing activities towards independent Asian travelers, adopting regional payment platforms such as Alipay and WeChat Pay, showcasing experiential offers on social media platforms such as Weibo, Band and Instagram, and promoting hotels on review sites such as Mafengwo and TripAdvisor.

Primary Authors:

Hpone Myint Thu
Assistant Manager | Research | Myanmar
+95 (0) 9 425 006 777
hponemyint.thu@colliers.com

CONTRIBUTORS

Paul Ryan Cuevas
Senior Research Analyst | Research | Myanmar
+95 0 9 960 381 584
paulryan.cuevas@colliers.com

Ye Htun Thet Paing
Senior Researcher | Research & Advisory | Myanmar
+95 (0) 9 505 9431
william.linn@colliers.com

Source: Collier

For further information, please contact:

Karlo Pobre
Managing Director | Myanmar
+95 0 979 573 3378
karlo.pobre@colliers.com

Ariel Vitor
Property Management Head | Real Estate Service | Myanmar
+95 0 979 034 5466
ariel.vitor@colliers.com

Hninn Ei Kyaw
Senior Leasing Manager | Real Estate Service | Myanmar
+95 0 925 418 8192
hninnei.kyaw@colliers.com

Joshua Delas Alas
Senior Manager | Advisory | Myanmar
+95 0 931 491 678
joshua.delasalas@colliers.com

Joan Mae Lee
Assistant Manager | Valuation | Myanmar
+95 0 976 488 3850
joanmae.lee@colliers.com

Hpone Myint Thu
Assistant Manager | Research | Myanmar
+95 (0) 9 425 006 777
hponemyint.thu@colliers.com

Myanmar Global Investment Forum 2019, 10 – 11 Sep 2019, Nay Pyi Taw

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Myanmar is seeing positive signs of economic revival, with domestic and foreign investment improving in response to the opening up to foreign direct investment (FDI), of retail and wholesale trade as well as the insurance business.

Now in its 8th year, the Myanmar Global Investment Forum 2019 will offer participants an excellent opportunity to hear directly from the government on their latest economic agenda and reforms, as well as to have meaningful practical discussions with the key influencers, investors and corporates in Myanmar through our new interactive event format.

Topics to be covered will include:

  • Projects and opportunities per sector, region and SEZ
  • Infrastructure and energy projects and investment planning
  • Myanmar Sustainable Development Plan, Project Bank and other reforms
  • Prospects for FDI inflows
  • Impact of the opening up of retail banking and the insurance business
  • The growing role of development financial institutions
  • New banking and financial regulation to increase credit to the private sector
  • Local SME development opportunities
  • Impact of changes in Myanmar’s retail industry
  • Private Equity: How much capital is to be deployed and how can businesses avail themselves of that capital?

Don’t miss a chance to hear from government representatives, domestic and foreign investors as well as businesses to discuss future collaboration and investment opportunities in Myanmar this September.

For more information about the event, or if you have any problem on the online registration, please contact our customer services team at rsvp@euromoneyasia.com.

For sponsorship opportunities, please contact Victor Wong at victor.wong@euromoneyasia.com.

For speaking opportunities, please contact Candice Chevillard at candice.chevillard@euromoneyasia.com.

To apply click here

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