ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

• 

  UK Department for International Development (DFID) funded DaNa Facility and Swiss insurance technology firms are set to invest USD$ 1.1 million (K1.7 billion) to develop Myanmar’s micro-insurance market

  The UK Department for International Development (DFID) and a Swiss insurance technology firm are set to invest US$1.1 million (K1.7 billion) in Myanmar’s micro-insurance market. The aim is to reach 600,000 people in a bid to expand and develop the country’s insurance and risk-transfer market. Stonestep AG, a Swiss micro-insurance technical services company, and the DFID-funded DaNa Facility announced yesterday that the two organisations would spend over US$1.1 million on prudential strengthening, consumer research, financial literacy education, new technology, and other activities to accelerate the development of the micro-insurance market. Over the next two years, the project aims to provide over 600,000 people with micro-insurance products to assist them in managing risk, generating personal income and working towards the government’s national targets for financial inclusion. During the first phase, Stonestep Myanmar will use Vision Fund Myanmar and their Social Welfare Fund (SWF) — one of the existing microfinance institutions (MFIs) in the country, as a platform to reach out to disadvantaged groups and those traditionally excluded from the economy. Stonestep will start by improving and augmenting the micro-insurance services provided to Vision Fund’s clients.
• 

  Yoma Bank and MC Easy Microfinance Company limited signed two funding agreements of MMK 4 billion each to enable Easy Microfinance to extend its operations and serve financial assistance in seeding capital for their business’ operations

  Yoma Bank and MC Easy Microfinance company limited signed two funding agreements of total MMK 8 billion (MMK 4 billion each). The first agreement was successfully completed in September, according to a press release. These new facilities will enable Easy Microfinance to extend its operations and serve an additional 28,000 borrowers, particularly micro-entrepreneurs and small business owners, who need financial assistance in seeding capital for their business’ operations. Easy Microfinance currently has an impressive loan portfolio of more than MMK 20 billion serving about 70,000 active clients through its 12 branches across Yangon, Naypyidaw, Sagaing, Magway, Mon and Kayin regions. Yoma Bank is one of Myanmar’s largest banks with over 3,000 staff members and 75 branches nationwide.
• 

  One of the largest 225 megawatt Sembcorp industries gas fired power plant (IPP) in Myingan, Mandalay region began full commercial operations on 10 October 2018, after its first phase of operations in May

  Sembcorp Industries’ US$300 million gas-fired power plant in Myingyan, Mandalay commenced full commercial operations on Wednesday following its first phase of operations in May. The 225-megawatt Sembcorp Myingyan Independent Power Plant (IPP) is one of the largest power plants of its kind in the country and also among the most efficient, Dennis Foo, managing director of Sembcorp Myingyan Power Co, told The Myanmar Times. The facility utilises advanced combined-cycle gas turbine technology that maximises power output while minimising emissions. The company said in a statement that this is “in line with our sustainability commitment to reduce carbon emission intensity by close to 25pc by 2022.”
• 

  DICA allowed AMATA Holdings Public Company Limited and TMH Telecom Public Company Limited to sell the shares over the counter which is different from the Yangon Stock Exchange (YSX)

  In addition to 59 companies that have already been selling shares, the Directorate of Investment and Companies Administration (DICA) has allowed two more companies to sell shares, according to its statements made on October 1, 2018. The two companies are AMATA Holding Public Company Limited and TMH Telecom Public Company Limited. They can sell shares “over the counter,” which is different from the Yangon Stock Exchange (YSX). Since these companies are not yet listed on the YSX, this is not an announcement for an Initial Public Offering (IPO). “This is a public announcement, and we have no plan to allow additional companies to sell shares at this time,’’ said U Myo Min, Director of Companies Division under DICA.
• 

  Stakeholders in the property and construction sector say that improvements are still needed to boost these sectors, as well as an agency to implement and enforce the regulations under Condominium Law 2016 and Condominium Rules 2017

  Stakeholders in the property and construction sector say there is still a need for a body or organisation to oversee, implement and enforce the regulations under Condominium Law 2016 and Condominium Rules 2017. The lack makes the legislation less effective presently those in the business say. As there are very few condo projects in Yangon in accordance with the regulations of the Condominium Law, the law cannot be fully effective in changing the market, said U Kaung Thu Win, founder and director of ShweProperty.com online real estate group. “Our expectation is that the government and the private sector, especially the construction businesses, do more to publicise the points in the Condominium Law so people will be able to better understand the situation,” said U Kaung Thu Win.
• 

  Myanmar's international trade increased by USD $ 2 million from 1 April to 30 September of the past mini-budget period when compared to the same period of last fiscal year

  Myanmar’s external trade with foreign countries from 1 April to 30 September of the past mini-budget period showed a significant increase of US$2 billion compared to the same period last fiscal year 2017-2018. External trade in the past six months amounted to $18.34 billion, which increases from $16.3 billion of last FY. This includes an estimated $8.5 billion in exports and $9.8 billion in imports. The trade deficit narrows to $1.3 billion from 1.86 billion of last FY.
• 

  From April to September 2018, CMP garment export earnings reached USD$ 2.2 billion, exceeding over USD $ 1 billion when compared to the same period of last fiscal year

  Out of total export value in the six-month mini budget from April to September this year, earnings from export of CMP garments reached the largest amount with US$2.2 billion, exceeding over US$1 billion compared to the same period of last year, according to the Ministry of Commerce. In those six months, export of clothes made under CMP system was valued at US$2,279 million, exceeding US$1,003 million compared to last year. Natural gas export value was ranked second with US$1,556 million, falling by US$86 million compared to the same period of last year.
• 

  Myanmar trade deficit dropped by USD $ 500 million in the six month fiscal year when compared to the same period of last fiscal year

  Trade deficit for the six-month fiscal year, which started on April 1 and ended on September 30, has dropped by $500 million compared to the same period of the previous fiscal year, according to the Ministry of Commerce. During the six-month transitional fiscal year, the amount of export is $8.5 billion and the amount of import on the other hand was $9.8 billion resulting in $1.3 million, dropping nearly $500 million to the same period last fiscal year.The last previous fiscal year’s trade amount was $16 million and therefore the amount of trade increased by around $2 billion. Increased export from value added products including natural gas increased by $1.1 billion as well as increased amount of income from cattle export make the trade deficit less severe, the ministry said.
• 

  Government authorities will launch new digital tax collection system next year by using technology to enable taxpayers to pay their taxes more conveniently

  Government is amending the tax laws to be clear as well as going to use IT technology for taxpayers to pay tax easily. The government will make existing tax laws clearer and start using technology to enable taxpayers to pay their taxes more conveniently. The tax collection system will be changed from the current paper-based system to a digital system, said U Min Htut, director general of Internal Revenue Department under the Ministry of Planning and Finance, which collects 80 percent of the country’s taxes. “We’re trying to use technology for the convenience of the taxpayers,” he said at a press conference held in Nay Pyi Taw last week.
• 

  Amata Holdings Public Co., Ltd is under negotiations with an American aviation company to deploy Bell helicopters in Mergui archipelago in Kawthaung, Tanintharyi Region

  Tourism and hotels company Amata Holding Public Co Ltd is in negotiations with representatives of an American aviation company for a deal that could bring helicopter transportation and sea plane flights to the Mergui archipelago in Kawthaung, Tanintharyi Region in the south of Myanmar. “We intend to start helicopter and sea plane operations around the islands near Kawthaung by the end of this year but this also depends on obtaining an air operator certificate (AOC) for helicopter services from the Department of Civil Aviation (DCA),” U Sai Kham Park Pha, a consultant for Amata Aviation told The Myanmar Times. Amata Aviation, one of seven subsidiaries under Amata Holding, is currently in talks with DCA about the AOC. Amata Aviation plans to deploy Bell 505 helicopters from Bell Helicopter, another Textron subsidiary. It will also use Caravan Amphibian aircraft from Cessna, a Textron Inc subsidiary, for sea plane transportation to and from areas in the region that would ordinarily takes hours to reach by boat or car.