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Hyundai Motor Myanmar, official sole distributor of Hyundai Motor in Myanmar, will hold the Grand Opening of Shwe Daehan Motors a new car parts installation factory of Hyundai Motor Myanmar. The new Accent launching ceremony at Hyundai Showroom on 08th February 2019. Shwe Daehan Motors Factory is located in Thar Du Kan Industrial Zone, Shwe Pyi Tar Township, Yangon Region. They will manufacture Hyundai cars by using the semi-knocked-down kit (SKD) system.

The new model of the Accent is available as a small Sedan and is powered by a 6-speed automatic transmission 1.4-liter four-cylinder engine providing 100 Horse Power, many options are available such as 16-inch alloy rims, rear disc brakes, 6 airbags, Electrochromic Mirror, steering-wheel with audio controls, a console storage bin, Bluetooth phone and audio streaming. Power windows and locks, remote keyless entry, speed sensing automatic door locks and full auto air conditioning are standard on all trims, as is Hyundai’s excellent warranty.

Attractive exterior style, luxury interior with leather seats and multi infotainment system such as Navigation system, Touchscreen, Bluetooth system, wifi and smart technology are also exceptionally equipped. Moreover, car provides not only improved engine power and lower operational cost, but also lower emission and better dynamic performance.

New Accent, manufactured by Shwe Daehan Motors Factory, is given 3 years or 100,000-kilometer warranty. There will be pre-booking event from 28th January to 8th February and will be given a present SK Lubricants ZIC engine oil for pre-booked customers.

Source:https://www.mmbiztoday.com/articles/hyundai-motor-myanmar-hold-grand-opening-ceremony-shwe-daehan-motors-factory

The 2019 Invest Myanmar Summit was held on January 28 and 29 in Naypyidaw, and jointly organized by the newly founded Ministry of Investment and Foreign Economic Relations and the Union of Myanmar Federation Chamber.

The two-day summit exhibited over 200 government and private investment projects worth $20 billion, and included discussion on sustainable and balanced development projects and investment banks.

At the summit, Daw Aung San Suu Kyi, State Counsellor of Myanmar, talked about the investment opportunities and visions for Myanmar in her speech.

Citing the newly adopted Myanmar Investment Promotion Plan, she said that Myanmar expects to attract up to $200 billion in foreign investments over the next 20 years, and can be a country with a middle income bracket.

One sector in particular that she pointed out was agricultural. This is a promising area for investors due to the fact that Myanmar owns the largest area of land in South East Asia.

“Every region and state has their own advantages, but some sectors need government support for investment in order to attract investors. We want Myanmar to become investment hub in the region by creating a good investment environment for local and foreign investors,” said U Pyo Min Thien, Chief Minister of Yangon.

ASEAN + 3 Macroeconomic Research Office estimates Myanmar’s economic development would increase to 7.4 percent this fiscal year, and estimates that the inflation rate in the country will be stable at 5 percent in fiscal year 2019.

This is the right time, she said, for Myanmar and the region at large to act boldly by adopting high ambitions based on these positive estimations.

Given the fact that 10 ASEAN countries, along with China and India have the combined consumer market of 3.5 billion people worth $15 billion, accounting 20 percent of global GDP. Daw Aung San Suu Kyi said that she hopes the region rise to become a significant market.

She also acknowledged that there are challenges in Myanmar and encouraged investors to turn the challenges into opportunities.

Dr. Zaw Myint Maung, Chief Minister of Mandalay Region, remarked that this time is an important turning point for Myanmar economy and showcasing investment projects can strengthen trust of the investors.

Invest Myanmar Summit 2019 received around 1,600 attendances including twelve union ministers, ten chief ministers and 150 representatives from regions and states.

Source:https://www.mmbiztoday.com/articles/myanmar-expects-attract-200-billion-over-next-twenty-years

With the aim of strengthening effective managements of the country, Ministry of Industry has set up four polices and two visions in accordance with 12 economic objectives of the country.

Ministry of Industry has aimed at utilizing modernized and advanced techniques of agriculture to develop Agro-base industries, Agri-Business, Agro-Products, and continue the task for the establishment of Heavy Industries.
In order to strengthen increased exports, efforts are being made to drive the implementation of small and medium enterprises can stimulate substitution of imports with domestic products and also strengthen increased exports.

Moreover cooperation between private sectors and inviting participation has made to invite technical know-how and investments. The Ministry also tries to increase Production of Value-Added Commodities by effective utilization of natural resources and raw materials. It is of great importance to ensure sustainable development without environmental impact and to utilize energy efficiently and renewable energy.

Quality of products
To assess the quality of products of micro, small and medium enterprises nationwide, region and state governments are urged to exhibit local products of micro, small and medium enterprises-MSMEs products in respective regions. In order to gain balanced growth, MSMEs are required to cooperate more with each other at regional and national level.

In accordance with the ASEAN Strategic Action Plan for SME Development ASEAN SAP SMED 2016-2025 plan, Myanmar is also working for growth of the country’s SMEs. Therefore a holistic way of viewing is needed to address the challenges and obstacles facing in the country.

Early stages of industrialization
Myanmar is still in the early stages of industrialization, around 57% of the total population is employed in the agricultural sector and there can be seen a stagnation of growth. Myanmar is highly dependent on exports of natural resources like natural gas, agricultural products, a few primary commodities and labour-intensive manufacturing products with low value-added. The Ministry of Industry has focused on how to promote the private sector based on industrial modernization.

The majority of the manufacturing industries are labour-intensive products like textiles and garments. That’s why it is needed to produce higher-value commodities which can achieve long-term economic growth in the long run. In this regard, the ministry has put priorities on the betterment of Human Resource Development (HRD), along with Small and Medium Enterprises Development and Restructuring of State-owned enterprises. It is needed to invest in the education sector towards the development of high-skilled human resources.

Advantage of labour market
Myanmar is rich in natural resources and has the comparative advantage of low-cost labour which can contribute the economic growth.

Moreover, Myanmar has great growth potential due to its advantageous geographical location at the juncture of the Association of Southeast Asian Nations (ASEAN) and borders of the world’s most dynamic and fast-growing countries such as China and India. It is of great importance for the rural communities to benefit from the economic growth and industrial development.

Small and Medium-sized Enterprises (SMEs)
SMEs are the main driving force of the country’s economy and the government is striving to obtain cash investments, main infrastructure requirements of electrical power and obtaining loans without collateral.
According to a research conducted by Central Statistics Organization, 98 per cent of the more than 120,000 businesses registered in Myanmar are SMEs. In the employment sector, of the 21.9 million workers, 83 per cent are working in un-registered SMEs.

As for the entrepreneurs, they should take advantage of the Myanmar Companies Law, which guarantees to consider a company with a 35 per cent share of foreign investment as a citizen-owned company.

Human resource development
Ministry of Industry sends government staff to foreign countries where they can attend workshops and seminars with the aim of empowering human resource development and raising living standards as well as socio-economic status of the country.

While the demand for skilled labour is high in Myanmar, there are not enough trained workers to meet the needs of the job market. And yet youths and young adults want skill training and employment opportunities. The Ministry of Industry has opened many vocational training schools with the aim of creating job opportunities for the youths in Myanmar.

During the training period, the trainees have to visit the industrial zones and learn practical experiences. The one who got the certificate of successful completion of the course can join any of the factories or mills in any country. The school (SITE) admission has increased up to the some 240 students. The school has taught auto industrial production system and its technology, computer-controlled metal cutting and designing, management and technology on water and sewage, technology on renewable energy such as solar and wind power and training for skill on wood finished products and furniture.

Source: http://www.industry.gov.mm/en/article/news/904

“We need to use alternative fuels, as the fossil fuels we are burning today will be exhausted soon”, said Union Minister for Industry U Khin Maung Cho at the signing of an agreement to manufacture electric buses and erect charging stations in Myanmar.

At the signing ceremony, held at the Research and Development Bureau in Yedhashe, the Union Minister said the country is promoting the use of renewable energy, while reducing the consumption of fossil fuels. Electricity may be the best tool in alleviating the consequences of burning fossil fuels. So, the global production and use of electric cars is on the rise, as fossil fuel-burning cars are being replaced by hybrid and electric cars. Myanmar also needs the assembling of electric cars to protect the natural environment and reduce carbon emissions.

Accordingly, the ministry will manufacture electric buses and charging stations, in cooperation with Green Power Myanmar Co Ltd, by adapting the technology of Csepel Holding Limited of Hungary. He also said the ultimate aim is to turn Myanmar into an electric bus and parts exporter, as well as the Southeast Asian hub for electric vehicles. The Hungarian cooperation will provide Myanmar with new manufacturing, repair and maintenance technologies. Moreover, the country can earn income from exports and generate job opportunities.

Honorary Consul of Hungary for Myanmar Daw Tint Tint Lwin spoke words of greetings and Executive Director of Green Power Myanmar Co Ltd, U Tin Maung Kyin, and Director of Csepel Holding Limited Kalaichelvan explained the electric car production and charging station erection program through the use of video clips.
Managing Director No 1 Heavy Industry U Kan Chun and Managing Director of Green Power Myanmar Co Ltd Daw Nilar Kyin signed the agreement in the presence of the permanent secretary of the Ministry of Industry and Director Kalaichelvan.
Following this, Green Power Myanmar Co Ltd and Oriental Transportation Enterprise Co Ltd signed an agreement to manufacture 300 electric buses for Myanmar.

Green Power Myanmar Co Ltd, which is working with Csepel Holding Limited of Hungary has already taken orders for 7,000 electric buses for Sri Lanka, India and Singapore, and another 300 for Myanmar. Because of the lower fuel costs, the business expects to see profits within three to five years.

As electric buses are smokeless vehicles that do not need lubricants, their maintenance costs are low. Using ten-year batteries, they are light vehicles which can travel up to 300 kilometers. There are charging stations and modern services tied into an e-ticket system. Because of such advantages, a new transport sector is expected to emerge in Myanmar.

The Union Minister, MPS, the Honorary Consul, Hungarian engineers and officials toured the electric car and hybrid car assembly lines of No 12 Heavy Industry, No 15 Heavy Industry and the No 26 Heavy Industry. —MNA (Translated by TMT)

Source:
http://www.industry.gov.mm/en/article/news/1033

Bangladesh Textile Mills Association (BTMA) acting president Mohammad Ali Khokon urged the government at the ongoing 15th Dhaka International Textile and Garments Machinery Exhibition to accelerate the process of liquefied natural gas (LNG) import as per plans to overcome the current power crisis that has slowed down investment in the textile sector.

The improvements in the power sector are inadequate for the heavy textile industry, which is also concerned about the huge deficit in the gas sector, Bangladesh media quoted him as saying.

Jointly organized by the BTMA and Yorkers Trade and Marketing Company, the February 8-11 exhibition is hosting 1,100 exhibitors from 36 countries, including Austria, Belgium, Brazil, China, Denmark, France and Germany.

The government and readymade garments manufacturers are jointly working to attain $50 billion export target by 2021, said state minister for finance MA Mannan, who was the chief guest at the inaugural ceremony.

The minister assured the industry representatives about the government’s commitment to do everything possible to boost the textile industry. (DS)

Source:https://www.fibre2fashion.com/news/textile-news/btma-urges-bangladesh-govt-to-import-gas-at-the-soonest-240547-newsdetails.htm

While residential and retail property took a huge knock, Stats SA revealed in September that the star performer during the second quarter of this year has been construction, and this is good news for the commercial and industrial property sector, says John Whall, CEO of Heartwood Properties.

Despite South Africa slipping into a technical recession, activity in the construction sector has increased by 2.3%, mainly due to the rise of non-residential buildings.

“Property prices for commercial and industrial zoned and serviced land seems to be maintaining their value with no notable reduction in prices. Especially zoned and serviced land that is commanding extremely high prices in Cape Town and in the prime areas of Joburg. We noticed that commercial and industrial investment properties with good leases in place are also holding their value in this market,” says Whall.

Delayed impact of land reform

With land reform looming, the country has been unsure about the outcome of the decision and Whall believes that even if certain parts of agricultural land should be converted to zoned serviced land, it will still take up to 10 years to materialise. What might eventually happen is that the risk of holding large portions of agricultural land may even push up the price of zoned land in the future.

As for commercial, the rentals of B and C grade offices have reduced due to higher vacancies but the vacancy levels of A and P grade space remains relatively low. Whall predicts that the ongoing lower vacancies of good warehouse space especially in Cape Town could result in increased rentals for the better properties, even as the economy slows down. This is partly due to the limited supply of new space onto the market.

“We’ve seen a bit of a lag in the Cape Town rental rates when compared to prime warehouse space in Gauteng and KZN and we could expect these rentals to increase above inflation over the next 18 months,” concludes Whall.

This means that things are looking up for this sector and shareholders shouldn’t rush to offload their shares or even their properties just yet. The overall market will react to any increases in interest rate hikes and that could have an impact on the sale prices of investment properties.

Source:https://www.bizcommunity.com/Article/196/698/182772.html

According to JLL’s latest report, Trade trends – the impact of trade imports on logistics and warehousing, the inflow of imports, mostly consumer goods, is contributing to increasing demand for storage, logistics and warehousing services in South Africa. A short update on the original research conducted in 2016, the report indicates a clear correlation visible in the trend of wholesale and retail trade sales in comparison to imports

Zandile Makhoba, head of research for Sub-Saharan Africa, JLL, comments: “As the technology economy advances, tertiary sectors – which provide products and services to all other industries in the economy – will continue to dominate. It is this context in which industrial and logistics accommodation is growing in strength.”

Changing development specifications

The report highlights the shifting demand for warehousing and logistics accommodation, and along with it the changing development specifications. For example, historically, industrial buildings required larger office components and needed to host higher employee numbers. In more modern industrial buildings, the office component has reduced significantly, and buildings are made to accommodate increased machinery and technology use as opposed to labour.

Four key factors are on the must-have list for modern industrial occupiers: Location is a big motivator with accessibility and visibility very important. Popularity of buildings in areas such as Jet Park, or Waterfall Estate with its highway frontage and opportunities for outdoor marketing, is evidence of this. Then the development of aerotropolis cities in KwaZulu-Natal (Dube Aerotropolis) and Gauteng (Aerotropolis Ekurhuleni) has also contributed to higher demand for accommodation near the King Shaka and OR Tambo international airports.

Other needs include larger yard space (to accommodate larger trucks and cargo vehicles), high volume maxi-units (occupiers are looking for big boxes, particularly for distribution and logistics use) and security (making access-controlled business parks popular).

No real threat of sharp oversupply

The report confirms that most developments to date have been non-speculative in nature, so there is no real threat of a sharp oversupply in the market. However, developer confidence has seen the rise of speculative developments which cater for more flexible lease terms. These adjusting lease terms are an indication of the increased presence of international occupiers and retailers, and the local market is beginning to align with international norms in the industrial leasing market.

Makhoba concludes, “The expansion of light industrial accommodation is also an indication of the increased pressure on transport infrastructure in South Africa, which is already showing signs of deterioration. The good news is that the public sector is making the necessary investments to improve infrastructure capacity to cope with this growth.”

Source:https://www.bizcommunity.com/Article/196/711/183731.html

The newly revitalised Phuthaditjhaba Industrial Park should be used to inspire confidence in the South African economy, Trade and Industry Deputy Minister Bulelani Magwanishe said on Tuesday, 30 October.

We are here on the backdrop of the Investment Summit, which confirmed the confidence that the local private sector and multi-nationals have in South Africa. We therefore need to take advantage of these industrial parks to increase investment and create sustainable employment,” said Magwanishe.

The deputy minister was speaking at the launch of the first phase of the revitalised R50m industrial park held at the Phuthaditjhaba Multi-Purpose Centre in QwaQwa.

Magwanishe also noted that there is hope for the South African economy and that signifies hope for the people.

“As we are to embark on phase two of the revitalisation programme, upon its completion we must be able to tell a story that, we have decreased the vacancy rate which currently stands at 40% and the employment rate which currently stands at 7518 has been hugely increased.”

He said the revitalisation is intended to respond to unemployment in the province and should also be explored to benefit not just the province, but the entire country.

Magwanishe said the province is strategic in many respects, most important being that it connects to six provinces and is the neighbour to the Mountain Kingdom of Lesotho.

Woo other SMMEs to the park

The deputy minister urged the Free State Development Corporation to woo in other small, medium and micro-sized enterprises (SMMEs) to consider setting up shop in the park, thereby helping to “drastically” reduce unemployment which is very high in the area.

Magwanishe also called for the revitalised park to be properly maintained.

“For this year Minister Rob Davies announced that R216m has been set aside for the revitalisation of industrial parks. Phuthaditjhaba is one of the five industrial parks that stand to benefit, as we will be proceeding with the other phases of revitalisation.”

“Today we recognise the completion of the first phase of the programme in this industrial park, which was realised through an allocation of R50m. This launch follows the completion of the first phase of the Botshabelo Industrial Park also here in the Free State,” said Magwanishe.

Work done at the park comprised of the upgrading of the security infrastructure including fencing, street lighting, installation of boom gates, pedestrian gates, installation of CCTV cameras and control room, as well as the refurbishment of high mast lights.

Free State MEC for Economic, Small Business Development, Tourism and Environmental Affairs Limakatso Mahasa urged black industrialists in the province to take up opportunities presented to them by the government.

The MEC also appealed to them to work with government to ensure that much needed jobs are created.

Tuesday’s launch is a collaboration between the dti, Department of Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA), Free State Development Corporation (FDC), as well as the Thabo Mofutsanyane District and Maluti-a-Phofung Local Municipalities.

Source:https://www.bizcommunity.com/Article/196/711/183790.html

Real African Works (RAW), the first of its kind in South African Automotive Original Equipment Manufacturer (OEM) industry, currently specialising in city buses with a focus on Bus Rapid Transit System (BRT) being rolled out by various municipalities, launched on 21 November at Melrose Arch, Johannesburg. RAW complies with both local and International regulations in the manufacturing of buses.
Industry leader, Dr Vuyelwa Toni Penxa, a black woman entrepreneur, is at the helm of Real African Works (RAW), participating in this notoriously male-dominated, mainstream economic sector.
In 2016, at a time that the traditional transportation sector was moving towards a new era, a vision was born to launch RAW, with the intent of leading the automotive transport manufacturing sector in South Africa to greater heights. RAW is a company with a focus on design, development, manufacturing, marketing and selling of automotive drive-trains focusing on commercial vehicles of three tons payload and above.

Local development of future technologies

RAW engages in the exploration of local development of future technologies, thus ensuring job creation in South Africa. With a mission to provide versatile commercial vehicles, RAW specialises in Diesel Powertrain Systems with the support of the multinational company, Cummins, a global diesel engine manufacturer and ZF, a global leader in transmissions and driving axles. RAW is transforming into a first local company that manufactures city buses for public transport use such as the Gautrain, a mass transportation system operating in Gauteng.

In line with South Africa and the United Nations’ commitment to climate change and reducing carbon footprint, RAW at its core, is driven by sustainability and its quest for zero emissions. It is steadfast to the establishment of commercially viable and environmentally sustainable public transport systems paving the way to a greener future.

In the short term, RAW is focused on delivering on its current contract obligations by utilising Busmark, whilst it is working on its full manufacturing facility within the Gauteng Industrial Zone in Ekurhuleni.

“Over the years, my vision has been a focus on transforming the public transportation industry with a goal to create a system that was on par with leading motoring organisations in the world by identifying new avenues through integrating advanced manufacturing solutions with a priority to meet consumer needs within a sustainable future society.” states Dr. Vuyelwa Toni Penxa.

“I want to acknowledge that the foundation of our business is anchored on a very strong support from the Gauteng Provincial Government, which not only presented an opportunity, but it also incorporated us into their research and enhancement of the 4th Industrial revolution, therefore introducing us to the Council for Scientific and Industrial Research (CSIR), Hydrogen South Africa Infrastructure (HySa), The Department of Trade and Industry (DtI) and The Department of Science and Technology (DST)” adds Dr. Vuyelwa Toni Penxa.

“The legislative framework on local content, preferential procurement, black industrialist programme and other incentives are additional key support measures for the growth of our business.”

“We started by researching the manufacturing of ‘Tuk Tuks’, but today we are proud to say we are in Africa delivering advanced busses that are on par with global standards and in some ways even more advanced.” concludes Dr Vuyelwa Toni Penxa.

https://www.bizcommunity.com/Article/196/485/184687.html

Speaking ahead of Thursday’s launch, Trade and Industry Minister Rob Davies said the SEZ is designated for the manufacturing of green technologies, alternative waste management, energy efficient technology, alternative building material and many other clean technologies.

“A combined R1.8bn is expected to be invested in the SEZ by 2022, with the creation of 1,200 direct jobs. A total of 24,000 full-time equivalent jobs are also expected to be created in the SEZ’s 20-year lifespan. This is in line with our Industrial Policy and will contribute towards the objectives of the National Development Plan,” said the minister.

SEZs are geographically designated areas of a country that are set aside for specifically targeted economic activities.

Manufacturing hub for green technologies

In 2011, the Western Cape provincial government, in partnership with the City of Cape Town, established a manufacturing hub for green technologies in Atlantis, which attracted large investors even before the designation was official.

“Four of these investors are already operational, with more expected to take occupancy within the SEZ in future once the facility is fully operational. This development will also allow the people of Atlantis to become involved in economic opportunities right on their doorsteps, and play an integral part in growing their economy,” said Davies.

The Atlantis community will be given priority in terms of job opportunities and opportunities for small, micro and medium enterprises (SMMEs).

Green economic hub

Western Cape Premier Helen Zille said the Western Cape Green Economy Strategic Framework serves as the province’s roadmap to becoming the leading green economic hub on the African continent, and the SEZ’s official launch is yet another step forward in this regard.

“We have identified the green economy, together with agri-processing and tourism, as key sectors under the Western Cape’s economic strategy, Project Khulisa. It focuses on sectors that prioritise jobs for young people, has a significant jobs impact in rural areas and opportunities for people with entry-level skills,” she said.

Zille said as a green investment destination, the Western Cape offers an emerging national renewable energy and clean-tech hub; a range of investment incentives in Atlantis Greentech SEZ; as well as major opportunities for investors in, energy services, utility scale solar and wind, waste, water, bio economy and resource efficiency.

Cape Town Mayor Dan Plato said the SEZ will secure major investment into Atlantis and provide solid job opportunities and skills development for surrounding communities for generations to come.

https://www.bizcommunity.com/Article/196/750/184966.html