ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  China's CITIC Construction, in collaboration with Myanmar Agribusiness Public Cooperation (MAPCO), has proposed to invest USD $ 17 million for Agriculture Service Centers

  China’s CITIC Construction has proposed to make an initial investment of $17 million to build Agribusiness Service Centers in cooperation with Myanmar Agribusiness Public Corporation (MAPCO) Ltd, according to MAPCO’s annual meeting held on December 27. “CITIC has proposed to make premium investment of $18 million for the project. Currently, we are discussing the details and hope that we will be able to make it happen very soon,’’ U Chit Khaing, President of MAPCO, said. In July 2017, MAPCO and CITIC Construction Group signed the MoU to implement Agribusiness Services Centers, which will provide services to small and medium farmers, in 33 townships across ten States and Regions.
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  Myanmar needs more growth, long term economic improvement certain and strategy needed (U Win Aung, Chair of UMFCCI)

  The government has come under pressure for its handling of the Myanmar economy, with stakeholders lamenting the slowing pace of economic reform and investment flows. During the first half of 2018, approved foreign direct investments (FDI) totalled just $1.7 billion, compared to $4.1 billion during the same period in the previous fiscal year. Meanwhile, GDP is forecast to slow from 6.8 percent in 2017 to 6.2pc in 2018, according to the World Bank. U Win Aung, former president of the Union of Myanmar Federation of Chambers of Commerce and Industry, is among one those unsatisfied with the economy’s progress. “We should not be content with the current situation. In my opinion, Myanmar needs more growth as the country’s needs are rising,” he told The Myanmar Times in an exclusive interview recently. However, with a good strategy to draw investments and diversify its trade partners, the long term outlook for Myanmar looks promising, said U Win Aung, who also founded Dagon International, a Myanmar construction and timber company, with U Win Thein, who is from the Tatmadaw, in the 1990s. Here is an excerpt of our interview, which has been edited for length and clarity.
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  Hydropower plant was opened in Putao of Kachin State for promoting regional economic development

  Upper NantHtwam Hydropower Plant in PutaO of Kachin State was commissioned into service on Wednesday. Chairperson of the Central Committee for Border Area and National Races Development, State Counsellor Daw Aung Suu Kyi attended the opening ceremony and gave a speech. The State Counsellor said distribution electric power could bring brighter light for the people including children. With the access of electricity, many opportunities will come for promoting economy. She added that the Government is carrying out for development of transportation and electricity sector as the priorities for physically progress of hilly areas. She pointed out that the electricity access could help communicating among the whole nation and the entire world as well. Union Minister for Electricity and Energy U Win Khaing later explained the salient pointes of the construction process. Kachin State Chief Minister Dr. Khet Aung also explained about the benefits, gained by the project.
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  Government signed a contract to buy electricity from Swan Ar Thit Oasis Development Company in order to remote areas where electricity is not available

  Myanmar Electricity Enterprise, under the Ministry of Electricity and Energy, signed a contract to buy electricity from Swan Ar Thit Oasis Development Company so that it can power remote areas where electricity is not available. Electricity from the Upper Balu Chaung Hydropower Project, developed by Swan Ar Thit Oasis, will be sent to the national power grid in next three years. “When the project is finished, we will be able to power many households in villages near Nyaung Shwe City in Southern Shan State, and create jobs for around 500 local people,’’ said U Win Khaing, Union Minister of the Ministry of Electricity and Energy. The project has two power generators: one with an installed power of 20.4 megawatts, and the other with an installed power of 10 megawatts, together they will generate 134.4 million kwh per year.
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  Up to eight foreign insurance providers expected to enter Myanmar market via joint venture with local providers this fiscal year

  Six to eight foreign insurance providers are expected to enter the Myanmar market via joint ventures with local providers this fiscal year, U Thaung Han, secretary of the Myanmar Insurance Association (MIA) and chair of CB Insurance told The Myanmar Times. On January 2, the Ministry of Planning and Finance (MOPF) officially permitted foreign insurance providers to open for business in Myanmar. Life insurance providers will be given two options to operate. The first option allows not more than three licenses for foreign life insurers to operate as 100 percent wholly owned subsidiaries. The second allows foreign life insurers with a representative office in Myanmar to form a joint venture with a local life insurer. Non-life insurance providers with rep offices in Myanmar will be allowed to form a JV with local non-life insurers.
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  Ministry of Natural Resources and Environmental Conservation (MONREC) is now processing 40 mining proposals at large and medium sized mining blocks in Myanmar

  The Ministry of Natural Resources and Environmental Conservation (MONREC) has processed a total of 40 proposals for mineral exploration at large and medium sized mining blocks in Myanmar, its permanent secretary U Min Min Oo said. Feedback on whether any exploration activities will have an environmental or social impact is being sought from the state and regional authorities. The developments come after MONREC in July last year permitted both local and foreign miners to submit exploration proposals to the government. Proposals to explore in large and medium sized mineral tracts will be processed by the Union government, while those for small-scale blocks will be processed by the state or regional authorities.
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  Two Moken villages in Southern Myanmar where sea gypsies’ people lived will be implemented Community Based Tourism (CBT) areas in 2019

  Two Moken villages in Southern Myanmar, Don Nyaung Mai Village in Myeik, and Makyone Galat Village in Kawthaung, will form Community Based Tourism (CBT) areas in 2019. Moken are a group of people known as sea gypsies who traditionally lived on the Andaman Sea in Southern Myanmar in their hollowed out wooden boats. They thoroughly know the waters, and they allegedly warned other locals before the 2004 tsunami hit the area. Thanks to their warning, some of those people managed to escape the tsunami, according to local media outlets. Now, the Ministry of Hotels and Tourism is conducting feasibility studies in these two villages to implement the planed CBT. By doing so, local communities will have job opportunities and visitors can learn about Moken’s pearl hunting and fishing.
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  Dusit, one of the Thailand’s leading hotel and property development companies, signed a hotel management agreement with Rich Mandalay Group to manage Asai Hotel in Yangon

  Dusit, one of Thailand’s leading hotel and property development companies, has signed a hotel management agreement with Rich Mandalay Group to operate Asai Yankin, one of the first properties to be signed under Asai Hotels, Dusit’s new lifestyle brand, according to Travel News Asia. Located in Yankin Township in the northern central part of Yangon, approximately 25 minutes by car from Yangon International Airport, Asai Yankin will comprise 111 rooms, measuring between 15 and 22 sqm.
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  Korean business expert said that Myanmar government needs to eliminate all discrimination policies against foreign investments to revive growth

  While Korean investors are looking to expand in Myanmar’s manufacturing and infrastructure sectors, the economy can only grow if the government puts an end to discrimination against foreign investments, a Korean business leader said. In December 2018, the Myanmar Korean Chamber of Commerce and Industry (MKCCI) became the latest business group to formally open its doors in the country. Figures from the Directorate of Investment and Company Administration (DICA) at the end of November 2018 placed South Korea as the fifth-largest source of approved foreign investment in Myanmar, amounting to around US$254 million worth of foreign direct investments (FDI). Big players include CJ Feed, Lotte Group, Korea Land and Housing Corporation and GS Construction. The Myanmar Times talked to Lee Keun Jae, secretary general of MKCCI and senior adviser at Yulchon Law Firm, on bilateral trade and investment and what Korean investors would like to see from Myanmar’s reforms.
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  There are five business sectors that seem to be looking more interesting in 2019

  Businesses did not have a positive outlook on the Myanmar business sector last year with falling confidence and firms pulling out of Myanmar. However, with the arrival of a new year, things seem to be looking more optimistic for some sectors. Our reporters have interviewed insiders and experts from five business sectors on their views on what to expect in 2019. (Click the sub-heading to read more.)