ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Earth Rights International and Dawei Development Association (DDA) launched a new report “Communities in the Balance: Local Voices and Prospects for the Dawei SEZ Project” which revealed local concerns on the Dawei SEZ project

  2018 marks 10 years since the Myanmar and Thai governments agreed to establish the Dawei Special Economic Zone (SEZ) project. The Dawei Special Economic Zone is an industrial development project in southern Myanmar. It is one of three SEZs in Myanmar that is designed to attract businesses by lowering environmental regulations, offering tax breaks, and waving minimum wage requirements. If completed, the SEZ will include a deep-sea port, an oil refinery, a steel mill, fertilizer and petrochemical plants, industrial factories and operations, a reservoir and a road connecting Dawei to Kanjanaburi, Thailand. If completed, it would be one of the largest industrial zones in Southeast Asia. However, the project faced controversy, and the Myanmar government suspended it in 2013, following funding deficits and community opposition.
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  European Union (EU) has withdrawn GSP for long grain rice exported from Myanmar and plans to set a tariff in 2019

  European Union (EU) has withdrawn Generalised scheme of preferences (GSP) granted for long grain rice (Indica rice) exported from Myanmar and planned to put a tariff next year, according to a report from Reuters news agency. The EU countries failed to determine whether to impose tariffs on rice coming from Myanmar and Cambodia from the start of next year to curb a surge in imports, leaving the European Commission (EC) to make the final decision. The EC had proposed the measures to control rice exports from Myanmar and Cambodia for three years and the commission would enact them when there is no decisive vote from the member states.
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  Local prices of fuel and gold have weakened on the back of lower dollar exchange rate after an agreement on the temporary suspension of new tariffs on goods traded between the US and China

  Local prices of commodities like fuel have weakened on the back of the sliding value of the US dollar against the Myanmar kyat following an agreement to temporarily suspend any new tariffs on goods traded between the US and China . The trend is expected to persist for the next few months, business and economic experts say. “This is partly the result of the current cooling in the US-China trade war, which has brought a little more confidence to the market. Although it is always difficult to forecast in the long term, economic indicators could improve over the next four to five months,” said wholesale fuel importer U Myo Htwe. As of yesterday, retail fuel prices had dropped between K10 and K20 per liter to K855 for Ron 92 petrol, K925 for Ron 95 petrol; K1025 for diesel; and K1010 for premium diesel. Fuel prices per liter on November 30 were K865 for Ron 92 petrol, K945 for Ron 95 petrol, K1035 for diesel, and K1010 for premium diesel.
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  Myanmar Fishery Federation (MFF) will organize a meeting with foreign banks on fishery loans to improve production (U Win Kyaing, General Secretary of MFF)

  Myanmar Fishery Federation (MFF) will organize a meeting at UMFCCI and invite foreign banks in Myanmar to discuss granting loans for fish and prawn breeding business in Myanmar, according to U Win Kyaing, General Secretary of MFF. “When MFF president told the president of UMFCCI, he agreed to the idea. So, we will hold a meeting on a convenient day, and invite foreign banks operating in the country. Our people need finance in order to improve production. We don’t have funds and our business are not improving,’’ he added. Central banks on November 8 allowed foreign banks that have been operation in Myanmar since 2015 to provide loans to local enterprise the same as local banks. Businessmen in fishery sector want to borrow credit from foreign banks.
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  Local banks have been significant growth and are on the right path to improvement despite their struggle with stricter regulations

  The Myanmar banking sector has improved since regulations aimed at strengthening the system were imposed over the past two years, U Soe Thein, vice governor of the Central Bank of Myanmar (CBM), told the media late last month. “The Financial Institutions Law was enacted in 2016 and new rules were released again in 2017. At first, the banking community protested against the regulations. But most of the banks complied with our directives and there has been significant growth and improvement in the banking sector over the past year,” U Soe Thein said. Among the directives released by the CBM is notification 7/2017 last November under which all local banks must convert overdraft facilities into term loans. By July 2020, the volume of overdrafts as a percentage of a bank’s loan book should be reduced to 20 percent from 50 pc in July this year.
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  Trade between Myanmar and the United States (US) hit over USD450 million in six months of the mini budget period from April to September 2018

  Trade between Myanmar and the United States totaled over 455.7 million U.S. dollars in the six-month mini-budget or transitional period from April to September this year, according to the Commerce Ministry Saturday. The country has changed its fiscal year period from original April-March to Oct.-September beginning 2018-2019, producing a six-month transitional gap. The country's export to the United States reached 293 million U.S. dollars while its import amounted to around 163 million U.S. dollars during the period.
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  Foreign currency exchange rate dropped in the local market despite the strong value of the US dollar in the global market

  The US dollar dropped to Ks1,510 in the local currency market, down Ks60 on December 4. The US dollar index in the global market hit 95.21 point in June, 95.39 point in July, 96.85 in August, 95.48 in September, 96.87 in October, 97.52 in November and around 96.61 point in December. Since June, the foreign currency exchange rate has increased significantly. On July 30, the currency exchange rate hit a record high of Ks 1,440 per dollar. The value of a US dollar increased from Ks 1,570 on August 16 to Ks1,650 on September 20. On October 11, the value of a US dollar reached Ks1,600. Since May, the global US dollar index has increased significantly. The minimum and maximum currency exchange rates in the local market are: Ks 1,345-1,407 in June, Ks 1,348-1,443 in July, Ks 1,442-1,570 in August, Ks 1,538-1,650 in September, Ks1,515-1,600 in October, Ks 1,565-1,595 in November. On December 4, the central bank’s reference rate was Ks 1,570 per dollar.
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  Investors from China and Hong Kong are keen to participate in the major Yangon redevelopment project or the New Yangon City Project

  Investors from China and Hong Kong are keen to participate in the New Yangon City Project, said the New Yangon Development Co (NYDC) yesterday. To invest New Yangon City Project, according to New Yangon Development Company (NYDC) CEO Office said on December 5. A statement issued by the NYDC CEO’s office yesterday said Ning Jizhe, vice chair of the National Development and Reform Commission of China (NDRC) met with Yangon Regional Minister U Phyo Min Thein last month during an official visit and discussed the implementation of the New Yangon City Project. Ning reiterated China’s support for the project during the meeting.
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  UMFCCI will host a forum on EU’s GSP and the possible impact on Myanmar workers and businessmen if GSP benefits are removed

  Union of Myanmar Federation of Chamber of Commerce (UMFCCI) will host a forum in December about the possible impact on Myanmar workers and businessmen if the EU revokes GSP benefits on Myanmar’s export, which were granted in 2013, according to U Zaw Min Win, President of the federation, said at the meeting between vice president and local businessmen on November 17. “There are a lot of concerns that GSP might be revoked because of external various pressure on us. I heard that it (revoking GSP trade benefits) could happen in two months, six months or a year. However, we need to prepare for it,’’he added.
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  Central Bank of Myanmar (CBM) allowed foreign banks to set foreign currency loan interest rate as long as those loans are in foreign currencies

  The Central Bank of Myanmar (CBM) said foreign banks are free to set their own interest rate as long as those loans are in foreign currencies. Foreign banks with branches in the country are now allowed to do wholesale banking services and other financial services, according to the latest Directive issued by the CBM last month. CBM has allowed foreign bank branches to provide loans and other banking services for companies and organisations but there are still restrictions on acceptance of immovable properties such as land and building as collateral and acceptance of fixed deposit saving and paying interest in kyat. In addition to the approval, CBM also announced that it will allow foreign bank branches to expand in 2019.