ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  The Russia-Myanmar Business Seminar was held in Moscow to exchange views and discuss the extension of bilateral economic relation and cooperation among the entrepreneurs of small and medium enterprise

  H.E U Thaung Tun, Union Minister for the investment and foreign economic relations and H.E. Mr. Maxim Oreshkin, minister for economic development of Russia Federation cordially exchanged views and discussed the extension of bilateral economic cooperation in Moscow on 19th June. Also present at the meeting were the deputy minister for economic development of Russia Federation Mr. Tumur Maximov and responsible officials and Myanmar ambassador to Russia Federation U Ko Ko Shein. Next, the union minister attended Russia-Myanmar Business Seminar organized by the ministry of economic development of Russia Federation and discussed the boosting of bilateral economic relation, investment opportunities and the promotion of cooperation among the entrepreneurs of small and medium enterprises.
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  Myanmar Tourism Bank (MTB) launched new non-collateral loans with interest rates, 14 percent for business to improve tourism industry

  The Myanmar Tourism Bank (MTB) has launched a new product. It has begun offering non-collateral loans with interest rates as low as 14 percent for businesses in the tourism industry, as well as for small-to-medium sized enterprises (SMEs). U Andrew Khant, Deputy Managing Director of MTB, said: “The Central Bank of Myanmar has set the maximum interest rate for loans with collateral at 13 percent. For loans with no collateral, it set a maximum 16 percent interest rate. So we can set our interest rates at 14 percent for this type of loan, and we will be able to practice relationship pricing.” Relationship pricing, or relationship-based pricing (RBP) is a pricing and billing framework where the pricing is determined by a customer’s overall purchases and circumstances, as opposed to it being delivered on a product-by-product basis.
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  Government will have to fund in upgrading Kawthaung airport in Tanintharyi Region if there is no private investor interested to invest after Golden Myanmar Airlines

  The government may have to step in to upgrade Kawthoung airport in Tanintharyi Regionif no private investor is willing to come in after Golden Myanmar Airlines, a domestic airline based out of Yangon, pulled out of the project. Department of Civil Aviation deputy director-general U Ye Htut Aung said the upgrading of the airport would be carried out with government funding if no other private investor steps up with the funds. “No matter what, Kawthoung Airport will be upgraded. The Ministry of Transport and Communications (MOTC) is drawing up the project costs for the government,” he said. It has been estimated that private investors would have to cough up US$36 million to improve the airport. Originally, Golden Myanmar Airlines, which won the tender, was suppose to invest 65pc, with 33pc to come from Singapore’s KMA Resources while China’s Beijing ZH Airport and Tanintharyi Capital would invest 1pc each.
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  There is over 600,000-acres unoccupied land are still available for local and foreign investors in Mandalay

  There is 627,149 acres of unoccupied land in Mandalay, the land is available for local and foreign investments, Dr. Zaw Myint Maung, Chief Minister of Mandalay Region, said at Mandalay International Trade Fair & Business Forum 2019. “If you want to make investments in Mandalay, we will make it easier for you and find the land you need. We want to make Mandalay the second biggest driving force for the country's economic development,” he added. He pledged that he will help investors who are looking to invest in Mandalay’s five investment project zones, and will help make investments easier and efficient for them. The aforementioned five investment project zones are Myotha Industrial City project, New Mandalay Resort City project, Amarapura City project, Yedagontaung City project and New Star Light Group project.
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  Myanmar Special Economic Zones Central Working Body held its coordination meeting in Nay Pyi Taw to accelerate the development of special economic zones in the country

  Myanmar Special Economic Zones Central Working Body held its coordination meeting (2/2019) on Wednesday in Nay Pyi Taw. In his address at the meeting at the Ministry of Commerce, the Central Working Body Chairman Union Minister Dr. Than Myint stressed plans, ways and coordination to accelerate the development of special economic zones. He also highlighted transparency and cooperation with the states and regional government in compensation for confiscated lands and resettlement. The Union Minister called for suggestions to tackle the difficulties and challenges. Chairmen of Thilawa, Kyaukphyu and Dawei special economic zones explained about the ongoing work process in the zones and plans.
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  Ministry of Commerce will grant loans to Myanmar Rice Federation (MRF) for the purchasing of rice

  The Ministry of Commerce is planning to grant loans totaling K15 billion to the Myanmar Rice Federation (MRF). With these funds, the MRF will purchase unhusked rice; currently, the market price is lower than the floor rates set by the government and the MRF. Currently, the local rice market is experiencing sluggish demand, which has lowered prices. With the loan, which is set for terms of 120 days, the Myanmar Rice Federation will attempt to both reduce financial losses for farmers and stabilize the market price of rice. According to U Aung Htoo, Deputy Minister of the Ministry of Commerce: “Despite lower rice prices, we can’t buy the unhusked rice at the price floor we set. The Myanmar Rice Federation bought the unhusked rice from farmers at a price lower than the floor rate. Now, they have requested the loan so that they can buy more rice.”
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  The price of cement is rising in Yangon due to the shortage of supply from Thailand

  Cement price is rising in Yangon due to lower imports from Thailand, according to local shops selling cement, brick, sand, and stone. The construction materials shops are selling cement imported chiefly from Thailand. The price of cement has been on the rise as there have been lower supplies of cement from the neighboring country because of poor weather conditions. “The price of cement usually increases by K100 or K200 whenever there is a shortage of supply from Thailand. Currently, the cement price has increased slightly,” said a local cement, brick, sand, and stone shop owner.
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  Maha Bawga Finance Co., Ltd is revealed plans to be listed on the Yangon Stock Exchange (YSX)

  Maha Bawga Finance Co is in the process of changing its status to a public company in preparation for a listing on the Yangon Stock Exchange (YSX), Daw Pan Pa Pa, financial controller to the company, told The Myanmar Times. Maha Bawga is a non-bank financial institution licensed by the Central Bank of Myanmar (CBM). The company is changing its status as it plans to expand its loan services in 2020, Daw Pan Pa Pa said. “The company plans to expand its services and reach with more branches to be opened. With this in mind, we plan to convert to a public firm and are also preparing to be listed on the YSX to gain better access to funding and investors,” she said.
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  World Bank report projected the Myanmar’s economy outlook positive pending reform acceleration

  Despite a global economic slowdown, the latest World Bank report projects a positive outlook for Myanmar’s economy due to accelerated reform implementation, infrastructure spending and investment in and liberalization of sectors such as wholesale and retail, insurance and banking. The World Bank’s Myanmar Economic Monitor Building Reform Momentum report, launched on Tuesday, said Myanmar’s economic growth is expected to rise to 6.5 percent in the 2018-19 fiscal year which starts October 1, thanks to strong performances by the industrial and services sectors. This is compared to 6.4 percent during the Transition Period of April 2018 to September 2018. Industrial activities are expected to see a revival, supported by strong performance in the garment and construction sectors. Services will remain the key driver of growth with momentum-building in the wholesale and retail sectors supported by reforms. The report also projects economic growth will accelerate to 6.7 percent by the 2020-21 fiscal year. Myanmar experienced a chronic exchange rate instability in the last fiscal year that harmed economic growth and widened inflation. However, the report said Myanmar’s economy is slowly picking up speed and regaining stability, supported by subsiding price and exchange rate volatility this year.
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  International Finance Corporation (IFC) becomes the first international investor in a commercial bank in Myanmar

  Yoma Bank has become Myanmar’s first commercial lender with a foreign stakeholder following a decision by the International Finance Corporation (IFC) to convert a US$5 million loan into a five percent equity shareholding. The IFC, the investment arm of the World Bank Group, provided the convertible loan package to Yoma Bank in 2014 to help it scale up lending to small and medium-sized enterprises (SMEs). So far the institution has helped Yoma provide over 7000 loans worth around US$800 million to SMEs in the country and increase the bank’s outreach from 52 branches to 80. It also issued a $7 million convertible loan to Myanmar Oriental Bank (MOB) in 2017 for the same purposes. The move will boost confidence among other foreign banks interested in taking a stake in Myanmar banks, according to business information firm Frontier Myanmar Research (FMR).