ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Export earnings from CMP garment industry up over one billion USD dollars when compared to the same period of last year

  From October 1 of 2018-2019 fiscal year, the CMP garment industry earned over 3.8 billion US dollars, up over one billion US dollars compared with the same period last year, according to an official of the Commerce Ministry. Last year, the sector saw the export earnings of over 2.775 billion US dollars. The export earnings of CMP garment industry increased by over 1.037 billion US dollars. The CMP garment industry topped the list of the total export sector. In 2018, the garment export sector earned nearly 4.6 billion US dollars. The sector is expected to earn up to 10 billion US dollars in 2024, said Khaing Khaing Nwe, secretary of Myanmar Garment Entrepreneurs Association (MGEA), at the 5th annual meeting at the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).
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  In collaboration with the Myanmar Retailers Association (MRA), AYA Bank will provide loans to 50 local retailers under its SME shop Owner loans pilot project

  In collaboration with the Myanmar Retailers Association (MRA), AYA Bank will provide loans to 50 local retailers under its SME (small- to medium-sized enterprise) Shop Owner Loans pilot project. U Thurein Nyein, the President of the Myanmar Retailers Association, said: “The Myanmar Retailers Association will provide loans to about 50 retailers, if they meet the requirements the bank has set.” The MRA and AYA Bank are now working together, and will provide the loans to approved retailers at the end of the year. The loans will be granted especially to retailers so that they can expand their businesses.
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  Myanmar foreign loans rise to USD $ 10.2 billion in the 2017 – 2018 fiscal year

  Myanmar has accumulated US$10.2 billion in debt owed to more than 20 countries and multilateral organisations, the Joint Public Accounts Committee of the Pyidaungsu Hluttaw noted in a report on the Union budget for the 2017-18 fiscal year. The committee said the Ministries of Home Affairs; Agriculture, Livestock and Irrigation; Transport and Communication; Electricity and Energy and; Industry took the largest loans. According to the report, loans rose by more than US$1 billion (K1.587 trillion), or 11.5pc, between fiscal 2016-17 and 2017-18. Of the total loan amount as of March 2018, loans from China formed the biggest amount totaling US$4 billion. Some US$1.11 billion has been repaid.
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  Yangon City Development Committee (YCDC) plans to allow private operators to manage the market

  Yangon City Development Committee (YCDC) is planning to allow private operators to manage the markets so they can stay open until later at night. “YCDC’s markets now operate more like an office; instead of being a market. Thus, it is better to hand them over to private operators. There is a big difference between private operation and state operation,”said U Maung Maung Soe, Mayor of Yangon. Since markets run by YCDC usually close before six o’clock in the evening, it results in shop owners selling their goods on the streets. People in Yangon are mostly office workers who would normally purchase items in the evening after work.
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  Myanmar Government likely to allow 35 percent of foreign investment in local wholesale and retail businesses

  In order to make shopping centers stronger, the Myanmar Retailers Association announced that Myanmar is planning to allow foreign investments to comprise up to 35 percent of the total investment in local wholesale and retail businesses. This move will nearly double the current proportion of foreign investment allowed in locally-owned wholesale or retail businesses, which now stands at 20 percent. Naturally, up to a full 100 percent of foreign investment is allowed in any wholesale or retail business that is owned by foreigners. U Thurain Nyein, the President of the Myanmar Retailers Association, said: “Even with foreign investments of up to 35 percent, wholesale and retail companies will be regarded as locally-owned, and will still be able to enjoy the benefits available to local companies.”
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  Thai Life Insurance Company will become the first ASEAN insurer to enter Myanmar’s insurance field

  Thai Life Insurance has struck a deal to take a 35% stake in Citizen Business Insurance (CB Insurance), becoming the first Asean insurer to enter Myanmar's insurance field, according to the Bangkok Post. Penetrating Myanmar's insurance market aligns with the company's strategy to expand operations to other countries in ASEAN, Chai Chaiyawan, president of Thai Life Insurance said in a statement.
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  The International Finance Corporation (IFC) will increase the access for small and medium business to finance aiming to better serve in business operation

  Yangon-listed Myanmar Citizens Bank (MCB) inked an agreement with the International Finance Corporation (IFC) to increase access to finance for small businesses and individuals. The IFC will provide advice to the public lender to transform and modernise its business operations to better serve small businesses. The project will be delivered over two years and will focus on optimising products and channels, improving branch and sales networks, optimising credit and risk management strategies as well as streamlining organisational management. “Successfully implementing this transformation project will significantly strengthen our SME and retail banking segments and will help thousands of businesses in Myanmar gain access to better banking,” said MCB chair U Toe Aung Myint.
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  Yangon aimed to complete USD $ 120 million Nyaung Na Pin industrial Zone by 2025

  Yangon is aiming to complete the $120 million Nyaung Na Pin Industrial Zone located in Hlegu Township, Yangon Region, according to U Set Aung, member of Myanmar Investment Commission. The project is being implemented by KMIC Development Company Limited and is jointly established by the Ministry of Construction and Korea Land and Housing Corporation. “Once the project is finished, companies and industries from Korea and other countries will come and make investments,”he added.
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  Myanmar Government set to ink a framework agreement with China on border cooperation zones establishment which is part of Belt and Road Initiative (BRI)

  The Myanmar government is ready to sign a framework agreement with China on the establishment of cross-border economic cooperation zones, paving the way for the implementation of Beijing’s grand infrastructure plans in the country as part of its Belt and Road Initiative (BRI). The assistant permanent secretary and spokesperson for the Ministry of Commerce, U Khin Maung Lwin, told The Irrawaddy, “The related government ministries have already reviewed a framework agreement proposal submitted by China.” “We received comments from the related ministries. We also reviewed the proposal with experts. We will send the proposal back to China. Our side is preparing to sign [a framework agreement] very soon,” he said. According to U Khin Maung Lwin, the framework will cover a number of major agreements, particularly on the formation of a bilateral joint committee for the implementation of the cross-border economic cooperation zones; the assignment of management roles for the zones; and types of incentives for investors.
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  Department of Civil Aviation (DCA) started its tender process for Kawthoung airport upgrading project in Tanintharyi Region

  The Department of Civil Aviation (DCA) last week started a tender process for the upgrading of Kawthoung airport in Tanintharyi Region and is now calling for requests for proposals. Interested parties have until November to submit the relevant documents. The entity undertaking the upgrade must be structured as a special purpose company with at least 65 percent of the shares held by Myanmar citizens. The DCA said in a statement that the project can be either a private investment by the company or a partnership with the department. The scope of works includes constructing new airport facilities such as runways, terminals, airport aprons, control tower, warehouses and parking. The terms of agreement include allowing the private companies to run the airports under a 30-year upgrade, operate and maintenance contract, which comes with an option to extend for another 10 years.