Weekly Business News from Myanmar

As part of the government's efforts to increase tax revenue, online tax payment systems will be available starting from February 2018
As a part of the National League for Democracy (NLD)-led government’s efforts to increase tax revenue, the Ministry of Planning and Finance will take its first step into us¬ing a technology based tax collection system. The Myanmar Payment Union (MPU) will be utilized to make online payments starting in February 2018, U Maung Maung Win, Deputy Minister of the Ministry of Planning and Finance said at the Pyithu Hluttaw meeting held on September 30. The Myanmar Payment Union was organized by state owned and pri¬vate banks in 2011 with the purpose of providing ATM and POS switching services among the vari-ous banks in Myanmar. MPU cards have been in use since September 14, 2012. As a result, all bank card holders can with¬drawal and check their balance and withdraw their funds at any MPU ATM.
Government plans to privatize unprofitable state-run factories since most state owned factories are operating at a loss
Most state-owned factories are not making profit and are operating at loss, while eating up state budget. The government is planning to privatize the unprofitable state-run factories, U Kyaw Win, Union Minister of the Ministry of Planning and Finance (MOPF), said at a meeting of UMFCCI. In lieu of selling the factories, the Ministry of Planning and Finance will hold discussions with the Ministry of Industry to privatize unprofitable state-run factories as soon as possible, said U Kyaw Win at the regular meet¬ing of Vice President No-1 and the business leaders held at UMFCCI on Octo¬ber 27. “To accelerate minis¬terial activities, we are planing for short, me¬dium, and long-term sce-narios on how to handle this situation. Currently, we are working on the short-term plan,” the Per¬manent Secretary of Min¬istry of Industry, U Ko Ko Lwin, said.
Stock trading of four companies listed on the Yangon Stock Exchange (YSX) reached an all-time low in October 2017
Stock trading of four companies listed on the Yangon Stock Exchange (YSX) reached all-time low of ks1 billion in October since its establishment, according to monthly data released by YSX yesterday.
DICA is in the process of improving the coverage and quality of its pilot survey project on FDI statistics to meet international standards
Myanmar Direc¬torate of In¬vestment and Company Administration (DICA) is currently in the process of improving the coverage and quality of its Foreign Direct Invest¬ment Statistics (FDI) with the goal of conforming to International stand¬ards, according to an an-nouncement on October 23. Quality of statistics is essential in guiding Myanmar’s economic-development and policy decisions. At present, My¬anmar FDI statistics have already been submitted by Myanmar Investment Commission (MIC), the statement, said. In this regard, DICA plans to conduct a pilot survey on Foreign Direct Investment (FDI) in My¬anmar for the financial years of 2016-2017. This survey is going to be used as the main data source in compiling Myanmar’s FDI statistics, which sum¬marizes direct investment transactions and stock po¬sitions by non-residents in Myanmar. The project receives technical assis¬tance from EU- ASEAN COMPASS Project and International Monetary Fund (IMF).
In order to encourage inclusiveness and accountability, efforts to boost corporate transparency in Myanmar accelerates
An annual study on business transparency of Myanmar companies would be widened next year to encourage inclusiveness and accountability in a larger context, according to Myanmar Centre for Responsible Business, a Yangon-based initiative funded by six European nations. MCRB director Vicky Bowman said that the assessment of companies’ websites would be doubled to 200 firms to be more inclusive. She said the report on Transparency in Myanmar enterprises known as Pwint Thit Sa would encourage companies to transparently publish their business information on their websites. “Transparency of companies listed on Yangon Stock exchange, public companies, other influential companies including large taxpayers and medium- and large- sized companies which have volunteered to be benchmarked would be studied through their publicised information,” she said.
Investment opportunities emerge as the government strives to establish a functioning economic zone in Kanyin Chaung, Rakhine State
Investment opportunities in Rakhine State are emerging as the government ups efforts to establish a functioning economy that will create jobs and encourage stability in the region. This month, local private sector experts and businessmen were invited to a briefing promoting investments in Rakhine. Selected sectors of the economy will be prioritised under a five-year plan established by the Rakhine State government, U Kyaw Aye Thein, Rakhine State Minister for Planning and Finance, told The Myanmar Times. The sectors include agriculture, fisheries, livestock breeding, forestry and tourism. Support will also be given to small and medium enterprises (SMEs) in the state. Kyaukphyu, Yanbye and Manaung were pinpointed as promising areas for the cultivation of crops such as ginger, coconuts and bananas.
UMFCCI organized nine private sector task forces to take part in the government’s Union Enterprise for Humanitarian Assistance, Resettlement and Development (UEHRD) project
Union of Myan¬mar Federation of Chambers of Com¬merce and Industry (UM¬FCCI) has organized nine private sector task forces to take part in the govern¬ment’s Union Enterprises for Humanitarian Assis¬tance, Resettlement and Development (UEHRD). As the second poorest state in Myanmar, Rakh¬ine state has been facing many challenges and dif¬ficulties with the ongoing conflict between Rakhine Buddhists and Bengali Muslims, this is one of the barriers leading to a de¬veloped state. The government is at¬tempting to stabilize the conflicts and find solu¬tions to negotiate the ten¬sion between two groups. The state needs assis¬tance from international organizations and local organizations including participation from busi¬ness leaders.
Singapore investors pile funds into Myanmar as interest in Myanmar rises
Yoma Strategic, an affiliate of Yangon Stock Exchange-listed First Myanmar Investments Company (FMI), has successfully closed a placement of shares that will enable it to raise S$82.2 million in fresh funds in Singapore, where it is listed on the Mainboard of the Singapore Stock Exchange. In a November 5 statement, Yoma Strategic said the placement, which was oversubscribed, received interest from both existing and new investors. Under the placement, a total of115 million new shares were issued at 53 Singapore cents each, representing a discount of 9.4 percent to the volume weighted average price of 58.5 Singapore cents per share for trades done between November 2 and November 3. The new shares will represent 8.2pc of the enlarged share capital of the company.
Despite the government’s aim to push Myanmar up the World Bank’s ranking for ease of doing business, Myanmar has fallen one place over the past year
DESPITE the government’s aim to push Myanmar up the World Bank’s ranking for ease of doing business, the country has fallen one place since last year and remains the least favourable country to conduct business within the ASEAN region. In the World Bank’s Doing Business rankings released on Tuesday, Myanmar ranks 171th out of 190 countries in the overall ease of doing business, one place lower than its 171th ranking last year. The country occupies a position between Sudan (170) and Liberia (172). It remains the lowest-ranked ASEAN member and, with the exception of Timor-Leste, the worst-ranked country in East Asia and the Pacific region. It is also the fourth lowest-ranked country in Asia, after Afghanistan, Bangladesh and Timor.
Rakhine State Government Committee and private companies signed a MOU with the aim of implementing three mega projects for regional development in Rakhine State
SITTWE - With the aim of implementing three mega projects for regional development in Rakhine State, a memorandum of understanding (MoU) has been signed between the Rakhine State Government Committee and private companies on October 30. The mega projects are construction of Kanyinchaung trade zone on Maungdaw Township, development of Manaung Island and construction of Ngapali International Golf Club. “We signed agreement with three companies on October 30h aiming for development of Manaung Island, implementation of trade zone and the upgrading of Ngapali golf club to meet international standards,” said Kyaw Aye Thein, Minister of Finance, Planning and Commerce from Rakhine State Government Committee.