Category Archives: Investment

Japan to Aid North-East India’s Infrastructural Interests

PM Modi and Mr Shinzo Abe
Prime Minister of Japan and India – Mr. Shinzo Abe and Mr. Narendra Modi respectively

Japanese involvement in India’s keystone infrastructural projects has significantly contributed in supplementing India’s growth stories. Its efforts and interest remain relentless and persistent as it embarks upon developing and boosting infrastructural prospects in the North – East of India while leveraging on the North-eastern pool of resources and its proximity to the South-East Asian countries.

With India being weighed as the gateway to the South East region, and also actively interested in pursuing its Act East policy, Japan’s interest in providing its technical know-how, expertise and experience in the realm of connectivity based infrastructure: roads, railways, electricity, disaster management, forest resource management and so on, is loud and clear.

Against this backdrop, the Coordination Forum for Development of North – East has been set up by India and Japan to expedite infrastructural development in the North Eastern part of India, after the Ministry of Development of NorthEastern Region (DONER) recognizes the priority areas that require immediate attention and operations.

The India – Japan Cooperation Forum for Development of NorthEast included officials from external affairs, finance, road transport, power as important participants, along with Japan Embassy’s ambassador, Mr. Kenji Hiramatsu and DONER Minister, Mr. Jitendra Singh, who inaugurated the forum.

The relationship between Japan and India has strategically gained significance and both the countries look forward to an engaging people-to-people and cultural exchange platform to seek, supplement and strengthen developmental opportunities while maintaining and building historic relations.

As per the International Community, Japan and India have the potential to be mutually-giving partners, with the surfeit of North-Eastern manpower available to boost Japan’s economy and Japan’s intrinsic and engaging interest in developing the NorthEastern part of India.

First Foreign Company Set to Build Oil and Gas Supply Base in Myanmar

Oil and Gas Supply Base

Singapore‘s MOSB Limited -Myanmar Offshore Supply Base, has been granted authorization to set up an oil and gas supply base, becoming the first overseas company to do so in the Mon State of Myanmar.

Myanmar has welcomed this project with great energy and enthusiasm as it gets approved and endorsed by the Myanmar Investment Commission (MIC) and the Ministry of Electricity and Energy.

With this arrangement, the oil and gas industry in Myanmar is expected to boom and impact the communities around by furnishing employment opportunities as well as aid in providing infrastructure, health and education facilities. Also, the travel time shall get substantially reduced, thereby, enhancing efficiency and productivity.

The Executive Chairman of MOSB, Mr. Leonard Oh, stated, “The planned offshore supply base would reduce the traveling time for oil and gas companies with Myanmar operations, who would otherwise have to travel to Singapore or Thailand.”

Contributing to the growth and expansion of Myanmar’s economy, MOSB’s efforts and commitment to boosting business shall involve its investment in refining the expansive and widespread infrastructure, transportation and the associated telecommunications.

U Zaw Min Oo, Village Head of Waeka Li Village, Mon State believes, “This will support the local communities by creating a lot of job opportunities, and will most definitely improve our standard of living in many different ways.”

The joint venture between Two Fish Supply Base Limited of Myanmar and 2 Fish (SG) Pte Ltd of Singapore is represented by the MOSB company, engaged in abetting the growth plans of Myanmar.

Myanmar Prioritizes Ten Areas for Investment

Ten Areas for Investment

Liberalization has long awaited the economic gates of Myanmar. With political dynamics steering towards democratization, the economy’s transition from being centrally controlled to a market-oriented one has been a laudable move.

The investment climate has been impacted most favorably, fueling the economic environment around with a sense of excitement, inspiration and unprecedented growth.

To encourage and ease the facilitation of business activities and operations, Myanmar’s new Investment Law got enacted and approved by the cabinet in the beginning of 2017. This law was originally drafted in 2013, with the aid and experience of experts and International Finance Corporation (IFC). It also endows within its ambit the details of the Foreign Investment Law drafted in 2012 and the Citizens Investment Law of 2013

The enactment of the new Investment Law and the entrepreneurial environment has led the Myanmar Investment Commission (MIC) to prioritize areas for investment by foreign and local businessmen.

These areas include – agriculture, livestock, fishery, export promotion, import substitution, power, logistics, education, health care, affordable housing construction and establishment of the industrial estate.

Myanmar’s untapped economic potential, along with its geographical proximity with major South-East Asian economies, with lowest population densities in the region and an abundance of the vast reservoir of natural resources makes Myanmar’s investment landscape an attractive proposition for the investors.

Myanmar could Lead Maritime Trade of Asia

Myanmar could Lead Maritime Trade of Asia

Myanmar has launched itself on the global podium, carving an aggressive and assertive entrepreneurial spirit. Its resoluteness to connect and attract foreign investment prospects to revive its strained economic model is a quite palpable post its political transition.

The Port and the Shipping Industry is being rendered as the immediate and the most significant means to integrate Myanmar with the global economy, leveraging its strategic geographical placement in between the most populous and the second most populous country in the world; India and China.

Mr. Kyaw Myo, Deputy Minister Transport and Communications, remarked at the 15th ASEAN Ports and Shipping Conference 2017, “The development of ports and shipping industry would be a driving force for Myanmar’s integration into the global economy. Myanmar’s transport infrastructure had reached the low end of the Asian benchmark due to our poorly targeted investment for many years. Now, it is time to improve our transport infrastructure effectively and systematically with regional and international cooperation.”

The boom in the transport infrastructure, its revision and the revamping of guidelines are imperative primary moves to bring about improved connectivity – intra and inter-region, which would facilitate domestic growth, and advance integrative international possibilities. Apart from strengthening and developing infrastructure, it’s enabling and empowering prospects of job creation, easier access to regions, promotion of economic trade and prosperous growth potential, the facelift of transport framework has been rendered as an important segment in accelerating Myanmar’s economy.

In the recently conducted –15th ASEAN Ports and Shipping Conference 2017, discussions pertaining to the essential role played by maritime trade to revitalize Myanmar’s economy permeated the entire conference session. The need for an efficient and well-planned connectivity mapping the regions internally is essential for foreign companies to reach effortlessly and seek new market gains and collaborations. This is being embraced as the cornerstone development in affirming Myanmar as the new and captivating hub of Southeast Asia trade.

Carving out a mutually beneficial relationship with domestic and foreign ports, while engaging in port development activities, greater stress has also been laid on peripheral facets such as security challenges, environmental impact and navigation accessibility.

The Managing Director of Myanmar Port Authority – Mr. Ni Aung exclaimed, “As a member state, we participate in ASEAN initiatives for the acceleration of economic growth, social progress and cultural development in the region through joint endeavors to strengthen the foundation for a prosperous and peaceful community by improving all aspects of transportation, specifically port development.”

The Yangon port, being the chief port of seaborne trade has been controlling 95% of the maritime export and import exchanges. Moreover, with nine ports handling seaborne and coastal trade, and with the construction of advanced terminals and multiple facilities in the areas of Yangon and Thilawa, the maritime cargo traffic has effectively enhanced.

Endowed with the capacity to accommodate as many as 36 vessels at the same time, the Yangon ports are being significantly harnessed to trade directly with 10 of the major trading economies like Malaysia, Iran, India, Singapore, China, Sri Lanka, Indonesia, Vietnam, Bangladesh and Thailand.

“Maritime transportation has been able to serve more than 85% of the nation’s trade,” said Mr. Myo Nyein Aye, deputy manager of MPA.

This indeed has been the gamechanger in boosting Myanmar’s economic landscape, fabricating and fueling an investment-friendly environment in building and developing ports. Relentless involvement of the private sector companies and aid from international finance institutions are deemed to further the prospects. As part of the current consultations on driving commerce in the country, employment of six new inland water port terminals has been ambitiously considered, with dependence on Myanmar’s new Investment Law for funds. The new ports include four on the Ayeyarwady River and two on the Chindwin River.

These ports will ensure rapid connectivity to more and bigger markets, and provide door to door system facility while experiencing reduced transportation costs and enlarged shipping capacity. In other words, these ports have been and will be the potential economy-transformers for Myanmar, generating jobs, accentuating regional development with improvement in living standards and bridging the gaps between the haves and have-nots.

Steering its course to growth, development and integration with the global economy, Myanmar’s sea and river ports have an absolute advantage of establishing Myanmar as the hub of trade in Asia.

UK Interested in Boosting Myanmar’s Transport Infrastructure

Mr. Andrew McNaughton - UK's Prime Minister
Mr. Andrew McNaughton – UK Prime Minister’s Business Ambassador for Infrastructure

Myanmar has transitioned into a land buzzing with business opportunities, with economic avenues expanding and exhorting the attention of global companies. The latest entrant to revise and revamp the infrastructural paradigm of Myanmar is the United Kingdom. The UK has expressed interest in supporting the large-scale infrastructural requirements of Myanmar, specifically its transportation unit; railway networks, airports and rapid transit system.

This welcoming news was brought to light after UK‘s Prime Minister‘s Business Ambassador for Infrastructure – Mr. Andrew McNaughton, visited Myanmar to explore opportunities at the infrastructural front for UK’s Department of International Trade (DIT) and UK companies.

According to Mr. McNaughton “The immediate opportunity for the UK to provide support would be in transport and in particular, mass transportation rail projects and the airport development program.”

Leveraging its strength, experience, expertise and Myanmar’s immediate need for infrastructural investments, UK business companies are enthusiastic about effectuating their economic and commercial interests, at the same time, acknowledging the potential urbanization process and infrastructural development that Myanmar will significantly be impacted with.

Myanmar is looking forward to capitalizing on sources to generate financial assistance to meet its infrastructural needs. For this purpose, a robust logistics sector with a sound legal and regulatory framework is an essential and a necessary requirement to be able to build internationally aligned market structures and attract capital investments thereof.

On this, Mr. McNaughton remarked, “The establishment of a market structure requires significant development of regulations and legal structures to be able to establish an environment to contract with international organizations. UK legal, financial and support services companies have extensive experience of working with governments around the world to establish such structures.”

He also lauded British technical and technological know-how which could assist preciously in Myanmar’s railway and airport projects.

In railways, he measured and estimated upgradation of long, intercity lines connecting the major cities of Yangon, Mandalay and Nay Pyi Taw, and revamping the Yangon mass rapid transit. This arrangement aims to decongest the traffic and also boost the growth of the city to 10 million by 2040. The plans also involve the introduction of two new metro lines and development of two airports namely: Mandalay International Airport and the new Hanthawaddy International Airport in Yangon. The mid-term objective is to grow cross border international trade as well as support regional airport program.

Thus, infrastructural scope in Myanmar is colossal and plays a planetary role in the urbanization process and in boosting the economy of Myanmar. As per business experts, refinement of transportation infrastructure is the fundamental requisite in attracting inward investments, retention of human capital and in escalating trade possibilities, leading to sustainable prospects and future-oriented growth.

Remarking upon ‘more opportunities and a few challenges’ in the MyanmarUK potential alliance, Mr. McNaughton exclaimed, “As an outcome of the Brexit process, the UK government and individual businesses are seeking to establish long term relationships beyond the European Community. This is being done without having to consider the views of 26 other member states. This creates agility and a momentum that can only be an advantage to the region.”

Spain and Myanmar Engage in Bilateral Development Plans

Spain Myanmar Development

Thumping with economic exuberance and sprightly spontaneity, riding high on expansion and development plans, attracting many foreign companies – Myanmar has arrived with the promise of new beginnings and the zest for a global embrace.

Recently, a multilateral partnership meeting was held at the Melia Hotel wherein Spain came forth to seek opportunities in the fertile lands of Myanmar, while extending forth its intention in facilitating Myanmar in its development plans.The event was attended by highprofiled individuals and involved the participation of official ministries such as the Ministry of Electricity and Energy, Ministry of Finance, Yangon City Development Council, Spanish Embassy, and local and Spanish business groups.

The event was attended by high-profile individuals and involved the participation of official ministries such as the Ministry of Electricity and Energy, Ministry of Finance, Yangon City Development Council, Spanish Embassy, and local and Spanish business groups.

The event underscored Spain’s belief in building the beautiful land of pagodas by alleviating poverty in Myanmar and subsequently enabling and enhancing job opportunities.

Mr. Garzon, CEO, ICEX, Spain Trade and Investment pitched in for Spain being a beneficial multilateral partner for Myanmar, with the view, “Spanish companies can be excellent partners and they are eager to join forces with the Myanmar Government. We believe we’ll be crucial for the country’s further development, and Spanish companies are particularly proficient.”

With Myanmar allowing foreign investments after decades of seclusion, various Spanish ventures are interested in investing in the infrastructure sector of Myanmar.

The World Bank and Asian Development Bank exhibited their funding plans, laying central focus to the infrastructure sector and sovereign lending. Mr. Hideaki Iwasaki of the Asian Development Bank Regional Office pointed out that their infrastructure operations are part of the two principal projects in the current year–Highway Modernization and the Third GMS Corridor Town Development Project.

Despite being bestowed with passable resources and natural riches, the investment canvas does suffer from bottlenecks such as unskilled professionals and inefficient organizational structures which hinders the investor’s confidence and impacts the investment climate.

The Directorate of Investment, Ministry of Finance (DICA), Mr. Marlar Myo Myint, while presenting the new investment laws, remarked,“ The government is welcoming business partners who are focusing on promoting sectors such as infrastructure, agriculture, education, healthcare, technology and tourism.”

The event was imbued with active networking, discussions, business to business interactions spanning through funding, energy and transport infrastructure.

PM Modi Visits Myanmar: A Gateway to Southeast Asia

Suu Kyi & PM Narendra Modi

The recent visit by the Indian Prime Minister Mr. Narendra Modi to Myanmar underlined Modi’s ‘Act East’ policy and highlighted the significance that India attaches to fostering good relations with Myanmar. With Myanmar set to walk on the path of development and liberalisation, on the back of the first democratically elected government in 2016, PM Modi’s first official bilateral visit sought to place India as the leading partner of Myanmar and give a much-needed impetus to the relations between
the two countries.

India and Myanmar have long shared historical, ethnic, cultural and religious ties. The geographical proximity (India shares a long land border of over 1600 km and a maritime boundary in the Bay of Bengal) has helped develop cordial relations and people-to-people contact. Ever since the two countries signed a Treaty of Friendship in 1951, there has been a steady rise in the level of engagement and cooperation between them, especially in areas of infrastructure development, trade, security, energy, health, transportation and culture, to name a few.

India realises the importance of Myanmar, not only as a gateway to South-East Asia but as a crucial partner in the fight to end insurgency in India’s north-east. Myanmar is also a crucial member of the ASEAN bloc and it is in India’s interest to have a strong and prosperous Myanmar. Myanmar, too, recognises the potential of this relationship with India and received the Indian Prime Minister with great gusto. The bilateral meeting, though marked by serious hurdles in the form of the Rohingya crisis, turned out to be mutually beneficial, as eight Memorandum of Understanding (MoUs) and three agreements were signed by the two sides, covering important areas of security, infrastructure health, energy, capacity building and culture.

Map depicting India-Myanmar-Thailand Highway
Map depicting India-Myanmar-Thailand Highway

India realises the importance of Myanmar, not only as a gateway to South-East Asia but as a crucial partner in the fight to end insurgency in India’s north-east. Myanmar is also a crucial member of the ASEAN bloc and it is in India’s interest to have a strong and prosperous Myanmar. Myanmar, too, recognises the potential of this relationship with India and received the Indian Prime Minister with great gusto. The bilateral meeting, though marked by serious hurdles in the form of the Rohingya crisis, turned out to be mutually beneficial, as eight Memorandum of Understanding (MoUs) and three agreements were signed by the two sides, covering important areas of security, infrastructure health, energy, capacity building and culture.

Infrastructure

PM Modi reiterated India’s commitment to support Myanmar in building infrastructure and developing human resources capacity. Some of the projects, which directly involve India are:

  • The Trilateral Highway (India, Myanmar and Thailand), which will link India to the ASEAN bloc
  • The Kaladan Multi-modal and Transport and Transit Project, which aims to link Kolkata to Sittwe in Myanmar and from Myanmar’s Kaladan river to India’s north-east
  • Development of Industrial Training Centres at Monywa and Thaton, following the successful completion of centres at Pakokku and Myingyan
  • Myanmar is a key component of India’s strategy to bridge South and South-East Asia through Bimstec, the Bay of Bengal Inititative for Multi-Sectoral Technical and Economic Cooperation
  • Upgradation of Yagyi-Kalewa road for Rs 177 crore
  • Upgradation of the Women’s Police Training Centre at Yamethin
  • Upgradation of Yangon Childrens’ Hospital and Sittwe General Hospital
  • Construction of Monywa General Hospital
  • Operationalizing the Advanced Centre for Agricultural Research and Education set up at the Yezin Agricultural University
    and the Rice Bio Park set up at the Department of Agricultural Research
  • Commitment to construct a new hospital in Nay Pyi Taw
Kaladan Multimodel Project
Kaladan Multimodel Project

Along with these, several other projects have been agreed upon by both the countries in IT, health, entrepreneurship, language training and small border area development projects in Chin and Naga areas of Myanmar. India has also extended $750 million in soft lines of credit for other infrastructure projects.

Investment

India’s trade with Myanmar grew by 6 per cent from US $2.05 billion in 2015-16 to US $2.18 billion in 2016-17. Both countries sought to work closely with each other to realise the tremendous potential, especially given the favourable environment for investment offered by the new democratically elected regime in Myanmar.

In their joint statement, the two countries acknowledged the importance of pulses in the bilateral trade basket. India imports around a million tonnes of pulses, $1 billion in value, from Myanmar. It is vital to Myanmar’s farmers, therefore Myanmar requested India to lift all restrictions imposed on imports from Myanmar. Myanmar has also welcomed India’s participation in its energy sector and invited Indian companies to take part in tenders for petrochemicals and petroleum products, marketing infrastructure and setting up of LPG terminals. The agreement between Numaligarh Refinery of India and Parami Energy Group of Myanmar on supply of diesel to Myanmar across the land border will give people of north Myanmar cheaper and more reliable access to petroleum products. In the energy sector too, India offered its technical and project specific assistance, for instance, it offered to conduct a solar radiation resource assessment in Myanmar, it shared its experiences in power trade and discussed ways to cooperate in the field of energy efficiency between the two countries.

India’s increasing investments in Myanmar also assume importance, in the light of Chinese interest in Myanmar. China has, in recent times, increased its presence in Myanmar and is even pushing for a special economic zone at KyaukPhyu among other projects.

Cultural Engagement

Given the close cultural and religious ties the people of the two countries share, culture is bound to be an important thrust area, as was highlighted in the visit of PM Modi. The two sides signed the Cultural Exchange Programme (CEP) for the period 2017-20 and expressed confidence that this would promote cultural exchanges between Myanmar and the North-Eastern states of India. PM Modi also visited Bagan, where the Archaeological Survey of India has restored the Ananda Temple and is involved in the restoration and conservation of 92 pagodas and structures damaged by the 2016 earthquake.

Religion forms a big part of the cultural heritage of the two countries. Bodh Gaya in India remains a place of pilgrimage for the people of Myanmar. Myanmar welcomed India’s efforts in preserving the stone inscriptions and temples of King Mindon and King Bagyidaw of Myanmar in Bodh Gaya.

Another gesture that was praised and welcomed by both the Government and the people of Myanmar, was India’s decision to grant special pardon to 40 Myanmar nationals undergoing imprisonment for various crimes in India.

Former Prime Minister of India, Dr. Manmohan Singh, on his visit to Myanmar in 2012, observed that “India and Myanmar are natural partners, linked by geography and history.” With PM Modi’s emphasis on developing relations with India’s neighbours, both countries are likely to work in unison to ensure enhanced people to people contact and a healthy environment for development.

Security

The 1643 km long land border that the two countries share and the belligerent posturing by China necessitates close cooperation between India and Myanmar, vis-à-vis security and defence. This formed an important facet of the discussions held among the leaders of the two sides. Terrorism and extremist-inspired violence remain a cause of concern, to counter which, both countries have affirmed their intent to work together. The two sides condemned terrorist attacks on Amarnath Yatra and the Rakhine State, and jointly called for the quick adoption of a Comprehensive Convention on International Terrorism by the UN General Assembly.

Mr. Modi’s government recently inked a US $37.9 million-worth lightweight torpedo with Myanmar. India has also begun supplying arms and communication equipment to the Armed Forces of Myanmar, to secure the sensitive border. The two sides also signed an MoU to strengthen maritime security cooperation, even in non-traditional security domains, such as “humanitarian assistance and disaster relief, which are critical for safeguarding the Bay of Bengal and the Indian Ocean.”

Indian army is engaged in providing training to the Myanmar army to prepare them for UN peace keeping duties, a step considered essential to redeem their global image.

Myanmar, on its part, reaffirmed “its respect of the sovereignty and territorial integrity of India” and upheld the policy of “not allowing any insurgent group to utilise Myanmar’s soil to undertake hostile acts against the Indian Government.”

The Rohingya Crisis

Even as India and Myanmar look to scale up their engagement, the two countries need to quickly tackle the crisis of Rohingya Muslims before it escalates into a dangerous catastrophe. PM Modi expressed his concern over the extremist violence in Rakhine and offered to fast track development projects in the troubles province of Rakhine.

At a time when State Counsellor Aung San Suu Kyi has come under pressure over the Rohingya crisis, PM Modi’s strong stand on the issue and support of the Myanmar government, resonated well with Myanmar. PM Modi’s government has itself taken a strong stand on the influx of about 40,000 Rohingyas over the years, threatening to deport them, as it views them as a big security threat.

The recent crisis, triggered by coordinated attacks by Rohingya militants on 25-26 August, under a recently formed Arakan Rohingya Salvation Army (now designated as “terrorists”) against government and security outposts in northern Rakhine, left 110 dead, including militants, security personnel and civilians. In response, state security forces launched ‘clearance operations’ to neutralise militants and recapture seized weapons and territory. If reports are to be believed, around 270,000 Rohingyas have fled to Bangladesh, triggering a massive humanitarian crisis in the Subcontinent.

The international community has come down heavily on the Myanmar government, in what they view as ‘ethical cleansing’ and crimes against humanity. Aung San Suu Kyi has defended her handling of the crisis and said that those attacked were Jihadists and that the military action was necessary to ensure security against the extremist elements.

PM Modi reiterated India’s commitment to stand by Myanmar’s efforts to find long-lasting peace and tackling the latest surge of violence.

The transition of Myanmar into a democratic state with a democratically elected government provides an ideal opportunity to India to engage with its neighbour in a mutually beneficial arrangement. It provides fresh impetus to PM Modi’s ‘Act East’ Policy and offers a counter-narrative to China’s increasingly bullish position in the Subcontinent. Myanmar, too, stands to gain immensely through this partnership, based on the spirit of cooperation, trust and rooted in shared historical, cultural, religious and ethnic ties. The visit by PM Modi has only reaffirmed this and it bodes well for the future of India-Myanmar relations.

By Arun Arora

National Bank of Canada acquires 22% in Myanmar Payments Outfit ONGO

National Bank

National Bank of Canada has acquired a 22 per cent stake in ONGO, a leading mobile payments provider in Myanmar. ONGO is backed by Ronoc Asia, a subsidiary of the Ronoc which is an investment firm focusing on emerging markets. The Founder and Chairman of Ronoc Asia/ONGO, Mr. Michael Madden stated, “The addition of National Bank of Canada is an important milestone for our business. We have aggressive growth plans for Myanmar and have set ourselves a goal of providing over one million consumers with access to finance over the next three years.” He further stated,“The addition of NBC as a strategic investor will strengthen our capabilities and accelerate our timelines in Myanmar as well as our expansion to other markets in the region.” The terms of the deals have not been disclosed.

Ronoc was founded by Mr. Michael Madden in 2007 and is headquartered in Dublin. It focusses on retail financial services and fintech in emerging markets. ONGO was launched in Myanmar near the end of the year 2016 and just in few months it has already rolled out some payment services in Myanmar. It has partnered with Coca-Cola and Myanmar Oriental Bank in Myanmar and presently provides payroll services; P2P money transfer, B2B payments and phone bill top ups and utility bill payments using their application. As per the company, it has more than 200 cash agent locations in Yangon. The availability of mobile financial services in Myanmar is on the rise. However, this is very new for the local population which is used to handling cash and therefore the usage of these services might take some time to pick up.

Kian Joo makes Myanmar a priority in overseas expansion

Kian Joo Overseas Expansion

Kian Joo Can Factory Bhd plans to continue strengthening its presence in Myanmar. It aims to do so by opening up two new manufacturing plants in the country. The construction of these manufacturing plants has already begun and they both are located in the Thilawa Special Economic Zone. One of these plants is for Kian Joo’s can production and the second one is for its subsidiary named BoxPak (M) which will manufacture corrugated cartons. Kian Joo has tin can, box carton manufacturing and contract packaging capabilities in Malaysia. Till now it has only been exporting products to Myanmar but now it intends to replicate the same business model that it has in Malaysia in this country as well. The construction of these two manufacturing plants requires an investment of around US $23.5 million. The group anticipates spending another US $81.6 million to set up both plants and their production facilities.

The commercial production is expected to begin at the plants before the end of 2018. Besides these two plants that are under construction, Kian Joo has 18 plants in Malaysia and three plants in Vietnam. It also has a 20 acres plot of land in Indonesia which it has kept reserved for now but will utilize in the future to further its growth. Kian Joo’s Malaysian operations generate the largest revenue; US $219 million for the full financial year. This made 54.7% of its total revenue while Vietnam was at the second place by generating around US $129 and contributing 32.3% of company’s revenue.

US QUASAR RESOURCES LOOKS TO INVEST UP TO $ 400 MILLION IN MYANMAR’S POWER SECTOR

US QUASAR RESOURCES LOOKS TO INVEST UPTO $400 MILLION IN MYANMAR'S POWER SECTOR

Quasar Resources, a Texas-based energy development company, is planning to invest from up to US $ 400 million in the Myanmar’s power sector over the next five years. The company is looking at developing a 100 MW solar power station in Sagaing Region of Myanmar. It will invest around US $ 150 million in this project. Quasar Resources has already begun talking to the Myanmar Government in order to take the project forward. Following approvals, the company is hopeful of completing the project in one
year. Recognizing the huge potential of the power sector in Myanmar, various private firms are keen to enter it. Around 70 percent of power in Myanmar at present comes from hydroelectric plants. Quasar Resources has plans to focus on solar energy which will prove to be beneficial in summers when water runs low in dry areas and the production of hydroelectric plants is impacted.

This firm is also talking to the local government for developing a 64 MW hydel power plant in the Upper Saedawgyi region. This project will require an investment of around US $ 150 million and will involve building a new dam to increase capacity.Quasar Resources also has plans to set up a 100 MW power plant in Thilawa Special
Economic Zone which will be built in three phases of 33 MW each. Quasar Resources has already raised private capital and is currently in advanced discussions with some more entities to secure additional funding. Besides Quassar Resources, Myanmar has seen investments from other corporations in the power infrastructure field. Some of these include US based ACO Investment Group
and Convalt Energy‘s 300 MW project in Myingyan and Thailand’s Green Earth Power Co. Ltd. plant in Minbu.