ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Consumer Price Index (CPI) hit 153.66 percent which is up 9.57 percent when compared to the same period of last year

  Consumer Price Index (CPI) in late May reached 153.66 per cent, up 9.57 per cent compared with the same period last year, according to the report on the CPI and inflation rate issued by the Central Statistical Organization (CSO). According to the calculations using 2012 as the base year, the CPI for the food group hit 168.77 per cent with the non-food group, reaching 132.39 per cent in late January. An increase in the CPI is due to a significant increase in commodity prices. According to the same calculation, the CPI increased from 140.24 per cent in May to 148.95 per cent in November last year. In late May, all regions and states saw a slight increase in the CPI. Yangon saw the highest with 2.54 per cent and Kachin, the lowest with 0.33 per cent.
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  Ministry of Commerce drafted law to establish a trade development body to empower Ministry of Commerce and the new authority to issue the lists of restricted items and non-tariff regulations

  The Ministry of Commerce (MoC) has drafted a law to establish a trade development body made up entirely of cabinet ministers and empower the new authority and MoC to issue lists of restricted items and non-tariff regulations. The legislation is expected to be approved by parliament within this year and the drafting was supported by the World Bank and German’s development agency GIZ. The text of the draft legislation, seen by The Myanmar Times, seeks to “promote fair competition and support locally-produced products, acquisition of technology and innovation which will lead to participation in the global business sector.” Under the draft trade law, businesses can import, export and re-export goods by obtaining trade registration certificates and licences issued by the commerce ministry, according to law firm DFDL.
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  Myanmar Productivity Centre (MPC) set to raise economic productivity in Myanmar in order to help the economy move up the value chain

  Myanmar’s plans to raise economic productivity through improving human capital development will now be backed by the Myanmar Productivity Centre (MPC), an agency that aims to help the economy move up the value chain. The MPC was launched on June 22 with the support of the Ministry of Industry (MOI), Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and Japan Productivity Center, with funding from the Asean Integration Fund. MOI permanent secretary U Ko Ko Lwin said the MPC fulfills the need for capacity building in the country. “It will focus on improving productivity,” he said. UMFCCI general secretary U Aung Kyi Soe said raising productivity levels by moving up the value chain would help the economy as goods that were being imported can be substituted with local products while at the same time help local manufacturers export more.
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  European car makers, Skoda vehicles in Myanmar expressed its interest to start production in Myanmar

  The Czech Republic has announced interest to assemble Skoda cars in Myanmar, U Thaung Tun, Union minister for Investment and Foreign Economic Relations, said last week. “The Czechs sold the Skoda in Myanmar in the past and now they’ve made an offer to start production here,” U Thaung Tun said at an investment promotion event held on June 26 in Nay Pyi Taw. He added that Hungary has also voiced interest in starting similar operations in the country. Hungary and Czech Republic made the offers during State Counsellor Daw Aung San Suu Kyi’s Europe visit last month, he said. However, more information on assembling Skoda vehicles in Myanmar was not provided. Hungary has offered to manufacture electric cars in Myanmar and the Ministry of Industry will cooperate, said U Aung Naing Oo, permanent secretary of the Ministry of Investment and Foreign Economic Relations. “Hungary is making plans to cooperate with the Ministry of Industry. It will be an assembly plant,” he said.
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  Ministry of Planning and Finance called non-government organizations (NGOs) and international non-government organizations (INGOs) to provide microfinance services in Myanmar as companies

  The Ministry of Planning and Finance have ordered non-government organizations (NGOs) and international non-government organizations (INGOs) providing microfinance services in Myanmar to form as companies. According to the order, issued in early June, if an NGO or INGO is going to provide microfinance services, they must have a license to perform those services in accord with the Myanmar Company Act. The Financial Regulatory Department asked the Ministry of Home Affairs and the Union Attorney General’s Office for their remarks on the matter. One of their replies was that financial institutions such as NGOs and INGOs do not need to register under the Registration of Organization Law; however, they will need to apply for microfinance licenses in accord with the Myanmar Company Act of 2017.
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  The average inflation rate hit 7.82 percent in late of May which is slightly increase when compared to the last April

  The average inflation rate in late May was 7.82 per cent, a slight increase compared with 7.51 per cent in late April, according to the figures released by the Consumer Price Index (CPI) and Inflation Rate by the Central Statistical Organisation (CSO). The average inflation rate is calculated using 2012 as a base year. The year-on-year inflation rate was 9.57 per cent. In late May, Magway Region topped the list of inflation with 11.94 per cent, followed by Mon State with 10.28 per cent and Mandalay Region with 10.21 per cent. In November, 2012, the Central Statistical Organization conducted a household and consumption survey on 32,669 households in 82 townships nationwide to calculate the CPI and inflation rate.
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  Thailand could be Myanmar’s gateway, its opening doors to other investors and opportunities for this frontier economy

  Thailand could be the gateway for Myanmar to diversify its borrowing sources by issuing unrated sovereign bonds in a market that is familiar with the country, as Laos did successfully in 2013. For many, borrowing holds a negative connotation. But for most emerging markets, foreign borrowing or external financing is unavoidable – there’s simply not enough domestic capital available to meet lending needs. Governments have a range of options for raising funds. One is to borrow domestically by issuing bonds. But if these are too large or frequent, they can create a situation where there’s not much capital left for the business sector or for private borrowing. Interest rates will then typically rise, negatively impacting the economy.
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  Ministry of Planning and Finance held the meeting for the growth of domestic insurance industry

  Deputy Minister for Planning Finance U Maung Maung Win and officials held a meeting to seek means for further progress of the domestic insurance industry yesterday at Myanmar Insurance (head office) in Yangon. Speaking on the occasion, the deputy minister said permits would be issued for the foreign insurance companies that would join the Myanmar market in the near future, and expressed belief that they would be the facilitator for the growth of domestic insurance industry. He called for intensifying public awareness of the insurance, as most of the people were not familiar with the business till now. “If compared with the industries of the regional countries, ours is much smaller in scope,” added.
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  IKBZ will corporate with Mitsui Sumitomo, Insurance the Japanese company, to provide general insurance services in Myanmar

  IKBZ will cooperate with Japanese company Mitsui Sumitomo Insurance to provide general insurance services. The plan is expected to be operational by September of this year, according to U Nyo Myint, Deputy Chairman of IKBZ. “We will submit a Request of Proposal this month to implement the Joint Venture with Mitsui Sumitomo Insurance,” he said. “They will only approve it if it meets their requirements.” After opening up the insurance sector, the Ministry of Commerce approved five foreign life insurance companies, namely: Japan’s Tokio Marine Holdings, Nippon Life Insurance, Sompo Holdings, Meiji Yasuda Life Insurance and MS&AD Insurance Group Holdings – the latter company on this list being a subsidiary of Mitsui Sumitomo Insurance. The joint ventures will be able to invest up to 35 percent of the share.
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  Myanmar Investment Commission (MIC) approved the twelve investment projects which will create nearly 3,000 job opportunities

  The Myanmar Investment Commission (MIC) meeting (10 / 2019) was convened at the meeting room of MIC in the morning on 28th June 2019 in Yangon. U Thaung Tun, Chairman of MIC, Dr. Than Myint, Vice Chairman of MIC and (9) members attended the meeting.