Weekly Business News from Myanmar

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  DICA clarified that the requirement of hiring foreign experts announced in October are only applicable to firms permitted by the Myanmar Investment Commission (MIC)

  The government’s newly expanded requirements on hiring foreign employees announced in October are only applicable to companies permitted by the Myanmar Investment Commission (MIC). The Directorate of Investment and Company Administration (DICA) issued a statement to clarify its earlier announcement - “Appointment of foreign experts” (AFE) - which entered into force on October 21. Under the October statement, a company is required to submit a work permit application for the appointment of a foreign expert and it must also notify the MIC together with documentary evidence of resignation and departure airline ticket if the foreign expert resigns prior to, or at the end of the permitted period in Myanmar. There was confusion over whether the AFE was applicable to all investors wishing to hire foreigners.
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  National Instruments (NI), a global provider of platform-based engineering systems, kick starts Myanmar operations in academia

  NATIONAL INSTRUMENTS (NI), a global provider of platform-based engineering systems, is intensifying its activities in Myanmar with the creation of new platforms for teaching and research for the academic segment. Matej Krajnc, NI’s managing director for Asean, Australia and New Zealand, said in an exclusive interview that the firm has partnered with Synopsis Technology Myanmar to offer its innovative products and technical solutions to the local market. He said both firms shared the same vision in leveraging the platform. “We started with academia. But we believe there will be a lot of other activities in Myanmar because our products are distributed globally,” he said. “Right now, we are focusing more on quality and support. We are really looking at how we can bring our technology to Myanmar, how we can help our partners, customers and the society. We need to understand the market better.”
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  The economic advisor to UMFCCI suggested a four-point remedy for reviving the ailing economy

  Dr U Myint, an economic adviser to the Union of Myanmar Federation of Chambers of Commerce and Industry suggested a four-point remedy for reviving the ailing economy at the UMFCCI Convention 2017 on Sunday. In his opening speech, Dr U Myint, who served as the presidential economic adviser, said: “Myanmar is not in a position to keep pace with Laos during the remaining term of the current government. In 2000, Myanmar’s per capita GDP stood at US$193.20. In 2010, it was ranked at 9th position with US$987.70, overtaking Cambodia. Until 2015-2016 fiscal year (in the time of Thein Sein administration), Myanmar could retain its status. Firstly, Myanmar needs to keep pace with Laos in order to keep abreast with its neighbours, Vietnam, the Philippines, Indonesia, Thailand and Malaysia.
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  Myanmar government is looking for regulations to govern the technology-based-ride-hailing companies

  The Myanmar government is looking at coming out with regulations to govern the technology-based ride-hailing app space, seeking to provide a level playing field to the operators, according to DealstreetAsia.
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  Government is ready to offer loans with an interest rate of 8 percent to SMEs, prioritizing import substitution-related and export-oriented manufacturing businesses

  The country’s biggest business and industry advocacy group has called on the government to change its policy on loans to better cater for the needs of small businesses. The government needs to change its loan policy, decrease interest rate, increase loan period and support the acquisition of technical know-how for SMEs, U Wai Phyo, Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) vice-chair, remarked. In response, the government is throwing its weight behind small and medium-sized enterprises (SMEs) and plans to offer loans to them, according to U Kyaw Win, Minister of Planning and Finance. The minister made the remarks during the UMFCCI annual general |meeting which took place in Yangon on December 10. SMEs in the country have a long way to catch up with those in neighbouring countries because of technological deprivation. Products manufactured in those countries have also displaced domestic products.
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  Two foreign joint business proposals in airline and oil refinery have been withdrawn despite the Myanmar Investment Commission's approval, due to obstacles from related ministries

  Two foreign joint business proposals – an airline and an oil refinery – have been withdrawn despite approval from the Myanmar Investment Commission, the MIC has reported. A proposed 78-billion kyat joint investment by Japan and Myanmar companies for a new airline was withdrawn after the Ministry of Tansportation and Telecommunications refused to issue a permit despite MIC approval. The second proposed investment was an oil finery in Dawei, a joint project of Chinese owned Guandong Zhenrong Energy (GDZR) and three Myanmar enterprises – the military-linked Myanmar Economic Holdings Ltd, state- owned Myanma Petrochemical Enterprise (MPE) and Yangon Engineering Group controlled by Htoo Group.
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  Central Bank of Myanmar (CBM) gives private banks more time to deal with “overdraft loans”.

  YANGON — Private banks have welcomed a move by the Central Bank of Myanmar to allow them more time to clear most of their loan books, a concession that followed warnings of a scenario that could have destabilised the financial system. The central bank announced in late November that a maximum of three years – instead of the original deadline of six months – would be given to lenders to recover the mostly open-ended “overdraft loans” that make up most of their lending. The move ends a tussle over regulations introduced in July to bring the country’s banks closer to international standards. The central bank decision came days after Reuters reported the authorities would back off from a demand that private banks clear most of their loans by January and that it would allow overdraft loans to be converted into three-year loans.
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  The Myanmar government is making efforts to restart development of the suspended Dawei Special Economic Zone (SEZ)

  The government is exploring ways to restart development of the suspended Dawei Special Economic Zone (SEZ), saying the SEZ will benefit Myanmar as well as the region. The Dawei SEZ includes construction of the highway as well as a deep-sea port which will link Thailand, Cambodia and Vietnam in the ASEAN region to India, the Middle East, Europe and Africa. A port at Dawei will also shorten transportation time by eliminating the need to navigate around Singapore through the Malacca Straits. “To implement the project, ways must be sought to hold talks between Myanmar, Thailand and Japan,” Vice President U Henry Van Thio said during a meeting with local authorities at the site of the project in Dawei, which is the capital of Tanintharyi region near the Thai-Myanmar border.
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  Social Enterprise Development Association Myanmar (SeDAM) was established by social enterprises consultant to strengthen social enterprise in Myanmar

  Support is forthcoming for social enterprises operating in Myanmar with the establishment of Social Enterprise Development Association Myanmar (SeDAM). “We have been dealing with various international associations and finding ways to contribute towards building up the economy by supporting social businesses in Myanmar,” said U Mo Lwin, vice president of SeDAM. Plans are also underway for SeDAM to work with the Yangon government to collect data on social small and medium enterprises (SMEs) and their requirements, U Mo Lwin added. “We are also planning to partner with different institutions to conduct social start-up programs and provide training to existing enterprises. We hope these activities will help us collect the needed data to support social enterprises,” he said.
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  The Permanent Secretary of Ministry of the Commerce provided an exclusive interview on policy, trade liberalization, and ASEAN free trade

  Myanmar Business Today’s deputy editor, Ko Phyo Thu, interviewed the Permanent Secretary of Ministry of Commerce, U Toe Aung Myint about the trade situation in Myanmar including, policy, trade liberalization, and ASEAN free trade. One goal of the interview is to provide helpful information to business wishing to extend their trade with Myanmar