ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  AYA bank is planning to sue bus companies owned by Ex-Dictator Ne Win’s grandsons for failing to repay the loans

  Two grandsons of Myanmar’s ex-dictator Ne Win may be at risk of being sued by a local bank for failing to repay hire-purchase loans obtained to acquire buses for a transport company they own. The bus company, Omni Focus, and two of its affiliates—Central Yangon Network Company and Keen Support Company—took out a loan of 56 billion kyats (US$36.8 million) from AYA Bank in 2017 to buy 500 new buses to be operated by Yangon Bus Service (YBS). The loan was sought at the recommendation of Yangon Chief Minister U Phyo Min Thein. In a statement released on Friday, the bank said it is planning to sue the companies for failing to repay the loans. The bank said it had attempted to communicate with the companies for several months, including sending bank notices and legal notices requesting repayment, as per the bank’s procedures.
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  Myanmar government prioritized nine sectors covering infrastructure projects under China- Myanmar Economic Corridor

  Myanmar is prioritising nine sectors covering infrastructure projects under the China-Myanmar Economic Corridor although more specific details as to which of the projects have been chosen remain under wraps. These sectors, part of the Myanmar Sustainable Development Plan, include electricity, road, bridge, telecommunication, basic construction, agriculture, transportation, research and technology. Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI) deputy chair U Thein Han said that the nine prioritized sectors involve partnerships between Myanmar and Chinese firms. He was among a group of Myanmar private sector representatives who had followed government officials led by Minister for Planning and Finance U Soe Win to the second joint committee forum of the China-Myanmar Economic Corridor held in Kunming, China in late February.
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  Fourth Australian Business in ASEAN survey finds private firms face hurdles in doing business in Myanmar

  Red tape and access to skilled labour are significant constraints for businesses in Myanmar, according to a survey by the Australia – Asean Chamber of Commerce. Three-quarters of the respondents to the survey on Myanmar identified government bureaucracy as a significant hurdle while two-thirds identified access to skilled labour as a constraint. Respondents to the survey - the fourth Australian Business in Asean Survey – also noted weak law enforcement as a continuing challenge to doing business in the country. These three high-impact business challenges increased in 2019 compared to 2017. However, the survey showed that the political and currency conditions have become more stable. Office rentals, personal security and labour costs were also seen by respondents as less of a challenge.
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  Yoma Bank will be focused on Small and Medium Enterprises (SMEs) loans and mortgages markets as CBM opened up for banking and financial service industry

  With the Central Bank of Myanmar (CBM) having issues a slew of directives liberalising the Myanmar banking and financial sector over the past 24 months, chief executive Hal G Bosher is beginning to see positive opportunities for Yoma Bank in the years ahead. “The CBM has been implementing reforms to bolster confidence in the industry since 2017. This is a good thing as it will help strengthen the banking system in the country with better quality of services,” he told the Myanmar Times during an exclusive interview. To align the country with the Basel III set of international banking regulations developed by the Bank for International Settlements, the CBM in July 2017 introduced rules requiring banks to submit reports on large debts and amend the way bank liquidity ratios are calculated. It also tightened regulations on the types of assets banks can hold. Less than six months later, it directed banks to convert all overdraft loans to term loans with the volume of overdraft as a percentage of a bank’s loan book to be reduced to 20 percent by July 2020.
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  Government authorities are planned to collaborate with private sectors under Private Public Partnership program to upgrade inland water transportation

  The Ministry of Transportation and Telecommunication is planning to run its six departments under the Inland Water Transport Department, they will do this in collaboration with the private sector under the Private Public Partnership program in order to make the departments commercially viable, U Thar Oo, Vice Minister of the Ministry, said at the parliament. He was responding to the question of U Myint Lwin, a lawmaker of Tontay constituency, who asked the government how it is managing the Inland Water Transport Industry (IWT)—the state-owned business—and wanted to know about the situation of employees in the department, vessels and the pontoon bridges of IWT. “The Inland Water Transport Department was formed with seven main departments. Now, we have decided to operate 6 sub-departments under the Transport Department—one of seven departments under IWT—cooperating with private partners. We have to run land transportation in a manner that is commercially viable, so we had invited the submission of EOI in 2018 and we received the proposals from 5 companies,”the Vice Minister said.
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  The agreements between the government and private firms are expected to be signed this month for the upgrading of three regional airports to international standards

  A raft of agreements between the government and private firms are expected to be signed this month for the upgrading of three regional airports to international standards. The three airports concerned – Heho airport in Shan State, Mawlamyine airport in Mon State and Kawthaung in Tanintharyi Division – will be upgraded to boost regional development as well as improve accessibility. According to Department of Civil Aviation Deputy Director-General U Ye Htut Aung, the first phase of the upgrading works that includes the construction of customs, immigration and quarantine facilities will total US$96 million. Upgrades for Heho airport will cost US$40 million, with US$20 million and US$36 million respectively for Mawlamyine and Kawthaung airports.
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  PTT Exploration and Production (PTTEP) found commercially proven gas reserves at the M9 block of the Zawtika project which is located 300 km southwest of Yangon in the Gulf of Mottama

  PTTEP Myanmar Asset, a subsidiary of Bangkok-based PTT Exploration and Production, has found commercially proven gas reserves at the M9 block of the Zawtika project located 300km southwest of Yangon in the Gulf of Mottama. The company’s General Manager Piya Sukhumpanumet said in a press release that one of the successful wells, Zawtika-24, has commercially proven hydrocarbon reserves. Results showed that the well has positively shown proven reserves of 152 metres of net gas sands, more than the expected 41 metres with the latest discovery to prolong Zawtika’s gas production.
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  Industrial Bank of Korea is interested to extend its services in Myanmar to facilitate the SMEs industries with the most potential to produce finished products instead of exporting raw materials by providing technical assistance and funding

  Industrial Bank of Korea, which is supporting small and medium enterprises in South Korea, is eyeing to extend its services in Myanmar, U Aung Kyi Soe, General Secretary of UMFCCI, said at the workshop on increasing agricultural and fishery export to South Korea from Myanmar held on February 16. Industrial Bank of Korea is an industrial bank headquartered in Jung-gu, Seoul, they provide financial services and management assistance to SMEs as well as providing other support in handling difficult situations related to the industry. “Industrial Bank of Korea has applied for a license to open its office in Myanmar. It provides nearly 80 percent of the SMEs in South Korea,”he added.
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  Chinese state owned firm signed a framework agreement with Yangon Regional Government to draw up a proposal for the infrastructure projects of New Yangon City project which has long list of controversies abroad

  A Chinese state-owned company, which has signed a framework agreement with the Yangon government to draw up a proposal for the infrastructure projects of the New Yangon City project across the Yangon River expected to be twice the size of Singapore, has been embroiled in a number of controversies for its involvement in alleged fraud, corruption and bribery in many other countries where it implemented similar development projects. The 20,000-acre-wide New Yangon City, one of the projects of China’s ambitious Belt and Road Initiative (BRI), was launched by the Yangon regional government in March last year via the government-owned New Yangon Development Company (NYDC). The investment for the first phase of the project, mostly infrastructure projects, is $1.5 billion. NYDC signed a framework agreement with China Communications Construction Company (CCCC) in April last year for nine initial infrastructure projects in the first phase that includes two bridges, roads, power plants, water and wastewater treatment plants and a 10-square-kilometer industrial estate expected to generate 2 million jobs. However, it turns out that the Hong Kong-listed China-owned company has been accused of corruption and bribery in at least 10 countries—from the Philippines to Bangladesh to Tanzania—in Asia and Africa for development deals in those areas, according to international media reports.
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  Trade and Investment projects have been launched in Yangon to improve market competitiveness, business and investment climate in Myanmar

  Aiming to improve market competitiveness, business and investment climate in Myanmar, the Trade and Investment Project was officially launched in Yangon on Monday, with the presence of Union Minister for Commerce. Myanmar Trade Promotion Organization, Directorate of Investment and Company Administration (DICA) and UMFCCI are the leading implementers of Myanmar Trade and Investment Project, funded by the United Kingdom’s Department for International Development with the technical assistance from International Trade Center. The main responsibility of the project is to support joint efforts for public and private-sector partnership to strengthen Myanmar’s role in Asian economic system. Union Minister, Ministry of Commerce, H.E. Dr. Than Myint said “The project will serve to boost the trade and investment opportunities in the country as well as to support in implementing the National Export Strategy effectively in the near future.”