ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  The South Korea’s KB Kookmin Bank will provide home loans to low income households in Yangon

  South Korea’s KB Kookmin Bank will participate in developing a government-funded residential complex for low income households in Yangon, Kim Chang-woo, chief representative of KB Kookmin Bank Yangon Representative Office, told The Myanmar Times. KB Kookmin Bank and Yangon Region Government signed a Letter of Intent to support the project during South Korean President Moon Jae’s visit to Myanmar last week. KB Kookmin Bank plans to help by providing financing to residents and supporting employment opportunities. The bank said it is in the middle of discussions at the Committee for the Development of Social-Based Housing Complex Projects on details of housing financing products to be provided by KB Microfinance, including interest rates, limits and loan duration and other plans to provide optimal service to residents, Kim Chang-woo said.
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  The fuel import volume reached more than USD $ 2.9 billion in 11 months of this year when compared to the same period of last year

  The Commerce Ministry imported more than 4.9 million fuel tonnes worth of more than US$ 2.9 billion, with a decrease by 480,000 fuel tonnes worth of US$ 380 million, compared with the same period of last year, said an official of the Ministry of Commerce. "From October 1 to August 30 of 2018-2019 FY, more than 4.957 million fuel tonnes worth of US$ 2.942 billion was imported. Last year, more than 5.444 million fuel tonnes worth of US$ 3.326 billion was imported," an official of the Ministry of Commerce told The Daily Eleven. The current fuel import decreased by 486,150 tonnes worth of US$ 384.389 million in 11 months this fiscal year.
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  Myanmar Sugar Forum 2019 was held in Nay Pyi Taw for the sustainable development of Myanmar sugar industry

  For the sustainable development for Myanmar Sugar Industry, Myanmar Sugar Forum 2019 was held in Nay Pyi Taw on Wednesday. Vice President U Henry Van Thio, Union Minister for Agriculture, Livestock and Irrigation Dr. Aung Thu, departmental officials and personnel from the related fields attended the forum. At the forum, the Vice President stressed to expand sugarcane cultivation to support the needs of local foodstuff industry, producing high-quality and value added sugar products, and seeking markets for export through the trade agreement. He also called for providing support to develop sugarcane cultivation for the socio-economic life of the growers. Deputy Director General, Department of Agriculture, Zaw Htun Myint said “For the sugar industry development, there is a little bit challenge like the high of production cost because of power consumption. If the production cost can be reduced, the growers will get good price. This forum intends to harmonize the sugarcane production and sugar market with good results by short-term and long-term solutions.”
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  The exclusive interview with Mr. Thanawut Naigowit, New Economic Counsellor and Director of the Thai Business Centre in Yangon for the trade and investment between Myanmar and Thailand

  Thailand and Myanmar have long had business and economic ties, with the Thais even establishing a trade and business centre in Yangon. Last year, trade volumes between the two countries reached US$7.5 billion, representing a year-on-year increase of 7 percent. Moving forward, Thanawut Naigowit, who was appointed as Thai Economic Counsellor and Director of the Thai Business Centre in Yangon last month, has plans to increase trade between Thailand and Myanmar to US$10billion over the next few years. This comes at a time when Myanmar is attempting to raise export volumes to Thailand at the Myawady border. “Myanmar businessmen need to find the right business partners from Thailand. Most of Myanmar people know about products made in Thailand but Thai people need to know more about Myanmar products first before exports can improve,” Mr Thanawat told the Myanmar Times in a recent interview. During the interview, Mr Thanawat also discussed the role of the Thai Business Centre as well as drawing more Thai investments into Myanmar:
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  Yangon Regional Government will partner with the Netherlands on increasing an effective water resource management policy in Yangon

  The Yangon Regional Government has partnered with the Netherlands on creating an effective water resource management policy. The country is facing various problems with water such as flooding in cities and towns, transport along shallowing waterways, and a safe and sufficient water supply for Yangonites. “We are working on methods for water management in order to provide services that meet modern city standards, and avoid disasters,” said U Phyo Min Thein, Chief Minister of Yangon. At present, major rivers such as the Ayeyarwady, Sittaung, Chindwin, and Salwin all face the same problem of shallow depth causing difficulties for water way transport. We have a twofold problem in the rainy season; lots of freshwater that is badly needed in the summer is lost to the ocean, and of course flooding. An effective water management plan can reduce floods while reassuring water security in the dry summer months.
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  The volatility of currency exchange rate is crucial for trade and foreign investments in Myanmar

  Local currency depreciation is not a good sign, and the volatility of currency exchange rate is also crucial for trade and foreign investments, said Soe Min, Deputy-Governor of the Central Bank of Myanmar. Deputy-Governor Soe Min yesterday submitted the report on monetary policy and the monetary volatility for 2016-17 FY and 2018-19 FY, at the session of Union Parliament on September 9. The central bank fixed the official exchange rate at Ks five per US dollar before 2012. The price of a dollar at the outside market was around Ks 700 to Ks 800. In some years, the price of a dollar exceeded Ks 1,000. Since April 2, 2012, the Central Bank of Myanmar introduced Managed Float Exchange Rate Regime in order to fix the suitable rate for huge variances of exchange rates, he added. “The central bank introduced the foreign currency auction system in order to fix the reference rates similar to those in the market and control the foreign currency market. The central bank fixes the reference rate based on the exchange rate proposed for the auction and the exchange rates in the local and foreign markets. After that, the central bank shifted to the fixing of weighted average exchange rate calculated on the exchange amounts in the interbank markets. In addition, the central bank plans to implement the rule-based interventions framework in order to lessen the huge gap in foreign currency exchange rates,” he continued.
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  The biggest Vietnamese trade fair in Myanmar will be held in Yangon in December 2019

  The biggest annual Vietnamese goods fair in Myanmar will take place in Yangon from December 19 to 22. Held by the Viet Nam Trade Promotion Agency (VIETTRADE) since 2009, the event will feature about 100 stalls this year. On display will be processed foods, consumer products, equipment and machines, electric and electronic devices, medical and chemical products. Vietnamese enterprises taking part in the fair will have their space and advertising fees covered by the organiser.
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  The Central Bank of Myanmar (CBM) will consider further interest rates liberalization and allow private banks more freedom to set their own rates to be more competitive

  The Central Bank of Myanmar (CBM) will consider further liberalising interest rates and allow private banks more freedom to set their own rates to be more competitive, U Soe Min, deputy governor of the CBM told Parliament on Monday. The CBM will seek assistance and advice from the International Monetary Fund in doing so and observe what other countries are doing on this front. Currently, private banks must set their interest rates within the 8 percent deposit rate and 13pc borrowing rate stated by the CBM. The Central Bank rate is 10pc. U Soe Min stressed that the liberalisation process will be a slow and gradual one. “Some other countries took up to 20 years to liberalise interest rates. These rates cannot be reduced or raised immediately. Adjusting interest rates requires the country to have deep capital markets and this will take time to develop,” he said.
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  The Central Bank of Myanmar (CBM) implemented phase 2 of the Myanmar Financial Network System (CBM-NET) in Myanmar

  The Central Bank of Myanmar is now implementing phase 2 of the Myanmar Financial Network System (CBM-NET), which will include building the infrastructure necessary to support the system. CBM-NET is a mobile payment system that will cover the whole country, and it will include integrated services by local banks. “We are working on the system, which will allow us to connect the networks from local banks such as KBZ Pay and AYA Pay. We are hoping to complete the system and launch it later this year,” said Daw Myint Myint Kyi, Director General of the Central Bank of Myanmar. CBM-NET entered a design and planning phase in 2016. The CBM-NET guidebook states that CBM-NET is a computer network that transmits and processes transfer instructions. It links the Central Bank’s computer centre, its head office/branches, and the system’s Participants. The CBM-NET comprises two systems: a system for funds transfers and a system for the custody and settlement of Government and central bank securities.
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  The 41st International jetty at Yangon port including Thilawa port and international bulk terminal Thilawa (IBTT) was opened in Yangon to provide port services of international standard

  The 41st international jetty at Yangon port including Thilawa port and International Bulk Terminal Thilawa (IBTT) have been opened and port activities have started there, according to sources from the Ministry of Transport and Communications. Located on 20 of 61.77 acres of land at plot No.30 (30+32) (A) in Thilawa port area, Kyauktan Township, Yangon Region, the international jetty and IBTT were built by IBTT Co Ltd founded by Lluvia Ltd, a branch of Diamond Star Co Ltd, Kamigumi Co Ltd and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN). "It is heartening to see that IBTT was able to open a multi-purpose international jetty to provide port services of international standard. The success of IBTT will be a landmark of the friendship between Myanmar and Japan. Our ministry and Myanma Port Authority will be fully cooperating in line with the procedures so that ocean-going vessels can be moored at the IBTT jetty and we can well handle agricultural products such as wheat and crops there," said Deputy Minister for Transport and Communications Kyaw Myo.