ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Magwe Region Government plans the growing of cotton instead of pigeon peas in coming growing season (U Win Maw Htay, Regional Minister for Agriculture, Livestock and Irrigation)

  The Magwe Region government will arrange the growing of cotton instead of pigeon peas in coming growing season, Regional Minister for Agriculture, Livestock and Irrigation U Win Maw Htay told The Myanmar Times. Pigeon peas are one of the crops that lost access to the Indian market after the country changed regulations for the import of pulses and beans earlier this year. “The ministry will organise educational talks for farmers to show them the financial viability of switching to planting cotton. There will be forcing of farmers to grow the alternative crop but farmers are encouraged to voluntarily switch to cotton,” he said. The Magwe Region government will arrange the growing of cotton instead of pigeon peas in coming growing season, Regional Minister for Agriculture, Livestock and Irrigation U Win Maw Htay told The Myanmar Times.
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  KBZ Bank introduced KBZPay, a new digital wallet across Myanmar to drive public awareness, encourage sign-ups and promote usage into digital economy

  KBZ Bank, Myanmar’s largest privately-owned bank, has officially introduced KBZPay, complemented with on-ground activations in Yangon and cities across Myanmar to drive public awareness, encourage sign-ups and promote usage. Through KBZPay, millions of people in Myanmar will be brought into the digital economy, making 100% financial inclusion a reality, and ultimately improving their lives. KBZPay is a digital wallet that is stored in an app on the mobile phone. Aside from being able to store money, the KBZPay app allows customers to make cashless transactions, to send and receive money, and to withdraw physical cash through authorised agents. Now available for download across the country, KBZPay offers a safer, simpler and more convenient way to transact money.
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  Over one million workers in garment and fishery industries might be affected if the European Union decides to revoke the Generalized System of Preferences (GSP) ( U Maung Maung, Chairman of Confederation of Trade Union Myanmar - CTCCUM)

  Confederation of Trade Unions Myanmar (CTUM) Chairman Maung Maung said that over 1 million workers from the garment and fishery industries might be affected if Generalized System of Preferences (GSP) was revoked by European Union (EU). “Over 700,000 workers from the garment industry and over 400,000 workers in fishery industry will lose their jobs and their families will be in trouble. We don’t want to see this situation. So, we request the EU not to revoke GSP,” Maung Maung said. Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI), Confederation of Trade Unions Myanmar (CTUM) and Myanmar Industry Craft and Services, Trade Unions Federation (MICS-TUsF) jointly organized a forum under the title ‘Together we succeed, Why GSP is essential for Decent Work and Industrial Peace’ at UMFCCI office on December 17 for advocating to not revoke GSP as it would stop and stall development in the country.
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  Central Bank prepares to release new directives on the liberalization of the country’s interest rates due to the higher levels of inflation spikes

  Inflation in Myanmar has hit a two-year high of 8.2 percent since August, up from 5.5pc last year as a result of a steep drop in the value of the local currency against the US dollar, rising food prices and a recent spike in global oil prices, according to the World Bank. The higher levels of inflation come even as pressure is mounting for the authorities to restructure the country’s interest rate regime, which hinges on stable and low inflation. The Central Bank of Myanmar (CBM) is currently preparing to release fresh directives on the liberalisation of the country’s interest rates. This will take place soon after a credit bureau tasked with providing credit data on borrowers to banks is established in the middle of next year, CBM Deputy Governor U Soe Thein said on December 11. The five-point directive will include possible guidelines on lowering local interest rates, making it more affordable for firms to take loans in Myanmar, U Soe Thein said. Yet, the World Bank is now expecting inflation to reach 8.8pc in the current fiscal year and remain above 8pc the following year. The International Monetary Fund is also forecasting inflation to be higher than 8pc for the year.
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  Joint venture between Loi Hein and Osotspa Public Company Limited (OSP) opened a new Myanmar beverage production facility in Thilawa Special Economic Zone

  Osotspa Public Company Limited (OSP), a Thailand-based consumer products manufacturer and distributor, and Loi Hein Co., Ltd., Myanmar’s largest drinking water and beverage business, recently held a groundbreaking ceremony for the construction of a new beverage production facility located in the Thilawa Special Economic Zone in Yangon. The new beverage production facility is located on approximately 132,800 square meters of land in the Thilawa Special Economic Zone (Zone B). It will be operated by Osotspa Myanmar Co., Ltd., a joint venture in which Osotspa PCL holds an 85% share and Loi Hein Co., Ltd. holds a 15% share. The project represents a total investment of 2,400 million baht funded by the proceeds received from Osotspa’s initial public offering (IPO) which took place in October. Construction of the new plant is expected to be completed and ready for operations in the fourth quarter of 2019. It will produce drinks for distribution in Myanmar.
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  The conflict in Rakhine State has slowed down foreign investment: to address this issue, UMFCCI recommends promoting economic growth in Rakhine

  Despite rich resources and good geographical location, Rakhine State has many challenges to overcome if it is to attract foreign investments, people in the business community say. “Foreign investments have slowed due to conflict in the state. The economy of Rakhine needs to be promoted first and only when it is conducive, will problems such as international pressure, inclusive development and conflict be reduced,” said U Tun Tun Naing, member of the Union of Myanmar Federation of Chambers of Commerce and Industries (UMFCCI). “The turmoil in Rakhine can be partly attributed to low levels of education in the state, so education must be promoted. With no job opportunities, there is no income .If livelihoods could be improved, there would be less conflict,” he said. “As a whole, Myanmar’s economy rests on the resolution of problems in Rakhine. If Rakhine is stable, and peaceful, then other countries will invest in other part of the country, so, we have to focus more on Rakhine,” he said.
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  Thai Government encouraged neighbouring countries to unite around SEZs and collaborate with the member nations to strengthen the regional economy in a sustainable manner

  The Thai government is encouraging four neighbouring countries to seize opportunities from the Asean single market and collaborate with all 10 member nations to build up the regional economy in a sustainable manner. With the new opportunities, special economic zones (SEZ) represent a key project, connecting Thailand and nearby Cambodia, Laos, Myanmar and Vietnam, all countries with strong growth potential. Industry Minister Uttama Savanayana said Asean countries have roughly 1,000 SEZs, representing 20pc of 4,500 SEZs globally in 270 cities. He said the SEZ scheme will contribute 20pc of the GDP in each country and increase worker income by an average of 8pc a year.
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  Get All Myanmar Co., a locally owned enterprise began their commercial operations in February 2018 and are confident of high rapid growth to expand overseas in few years (U Nyein Chan Soe Win, the firm’s Co-Founder and Chief Executive)

  WITH online to offline (O2O) platforms on the rise across Asia, Get All Myanmar Co, a locally owned enterprise that began commercial operations in February this year, is confident that it will be able to expand overseas in a few years, according to Nyein Chan Soe Win, the firm’s co-founder and chief executive. “We have created an ecosystem in which people from all walks of life can be easily involved. We believe our services will reach out to all parts of Myanmar by 2030, and thereby will expand overseas as a regional player,” he said in an exclusive interview. The firm has been registered in both Myanmar and Singapore since July 2017. Singapore-registered Get All Private Ltd owns 100 per cent of Get All Myanmar Co, which aims to expand its presence in Cambodia, Laos, Bangladesh and Pakistan, as well as in West Africa simultaneous with nationwide expansion.
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  Union Parliament plans to accept loans worth Euros 70 million ($79.3 million) from the French Development Agency (AFD) to promote river bank development and urban cultural heritage maintenance in Yangon Region

  The Union Parliament on Thursday voted down the government’s proposal to receive loans worth 70 million euros ($79.3 million) from the French Development Agency (AFD). Just 34 votes were in favor of the proposal and 497 against, with six abstentions despite the deputy minister for planning and finance attempting to convince lawmakers that the project would ultimately benefit Yangon residents and saying that the government has already spent almost two years preparing the project. The loans, according to the Yangon Region government, was to be used to upgrade parks and markets, build car parking facilities, develop riverfront areas, conserve cultural heritage sites and dredge the Nga Moe Yeik Creek, an undeveloped waterway in Yangon that the regional government believes could be used for public transport.
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  Customs department introduced customs warehouse without Value-Added Tax (VAT) in the country to reduce import restrictions on Myanmar goods (U Soe Win, Union Minister of Planning and Finance)

  The customs department will introduce customs warehouses, or bonded warehouses – where goods can be stored without Value-Added Tax (VAT) or import duties – in the country, Finance Minister U Soe Win said on Friday. The aim is to align local customs warehousing procedures with international standards and reduce import restrictions on Myanmar goods, the cabinet minister explained during a meeting with Vice President U Myint Swe and business representatives. The tax reductions will involve lowering the advanced income tax burden and simplifying the logistics processes to save time. “Customs warehousing can help simplify export and import processes. Warehouses are a means to store inventory which can provide a steady supply of material when needed and help hedge against high commodity prices. Additionally, it will support legitimate trading and minimise illegal trading,” U Soe Win said.