ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar Investment Commission launched a major investment promotion plan to attract more than $200 billion through responsible and quality business over the next 20 years

  YANGON—In an effort to counteract the significant decline in foreign direct investment (FDI) over the last two fiscal years, the government’s Myanmar Investment Commission (MIC) has launched a major investment promotion plan which aims to attract more than $200 billion through responsible and quality business over the next 20 years. The Myanmar Investment Promotion Plan 2018 (MIPP) announced on Monday, outlines three strategic periods in the plan to attract FDI. It projects to receive $8.5 billion the first four-year phase starting from the 2021-22 fiscal year, $12.3 billion in the four-year phase of 2026-2027 to 2030-2031 and $17.6 billion in the third phase from the 2031-2032 to 2035-2036 fiscal years. The Myanmar government believes FDI is a key driver of economic development and is committed to an open, fair and clear investment policy, according to the MIPP. Daw Aung San Suu Kyi’s government is struggling through a chronic economic slowdown. A recently conducted short-term business sentiment survey showed that this year has been the worst across all business sectors and that business confidence had declined compared with last year, with a majority of businesspeople complaining of a lack of clear economic policies from the government.
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  Yangon Regional Government will develop the Ngwe Pin Lel Integrated Logistics Zone and Inland Water Transport Jetty under public-private partnership (PPP) agreement

  The Yangon Regional Gvernment is going to develop the Ngwe Pin Lel Integrated Logistics Zone and Inland Water Transport Jetty under a public-private-partnership (PPP) agreement, U Myint Thaung, the regional minister of planning and finance for Yangon Regional Government, said. The matter came up when regional representative Daw Sandar Min questioned U Myint Thaung about the project during a sitting of the regional hluttaw last week. The project will be located on 78.9 hectare site in Hlaing Thar Yar Township, Yangon Region, and is expected to cost K151 billion. It is scheduled for completion in 2021. The construction of the zone is expected to boost the region’s manufacturing sector and the distribution of goods. It is also hoped that the jetty portion of the project will help to improve the traffic situation in Yangon. The project will be designed, built, financed, operated and transferred under a PPP agreement, U Myint Thaung, said.
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  Myanmar authorities are preparing to hold a business forum in Mandalay region to promote trade and investment for development of Mandalay Region

  Myanmar is making preparations to hold a business forum in Mandalay, the country's second largest city in the north, on Nov. 9, aiming to promote trade and investment for the development of Mandalay region, according to the Directorate of Investment and Company Administration (DICA) Monday. Such a forum is partly aimed at driving development more evenly among all states and regions. The forum will showcase business opportunities in the region, familiarize new business law and regulations and the investment environment of Mandalay region and widen network between foreign investors and local business community, said the organizer. High level speakers, officials from the government side and the leading personnel from the private sector will speak on the occasion, the organizer added.
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  Different economic forecasts for Myanmar by the World Bank, the Asian Development Bank, and the ASEAN+3 Macroeconomic Research Office

  YANGON— Economic forecasts released in recent weeks by the World Bank, the Asian Development Bank and the ASEAN+3 Macroeconomic Research Office paint a mixed picture of Myanmar’s economic health. AMRO said the economy was on a gradual recovery path, forecasting growth of 7.4 percent and inflation at around 5 percent in fiscal year 2018-19 in its 2018 Annual Consultation Report on Myanmar that was presented in Yangon on October 5. In contrast, the World Bank said in its East Asia and Pacific Economic Update last week that growth would weaken to 6.2 percent and inflation would accelerate to 8.5 percent in the same year, amid what it said were rising macroeconomic vulnerabilities. The ADB’s latest figures, released last month in its updated Asian Development Outlook 2018, strike a balance between the two forecasts. Growth in 2018-19 is likely to come in “slightly lower” than the 7.2 percent forecast earlier this year, it said, while inflation should stabilise at 6 percent.
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  The Government will continue to develop Kyaukphyu Special Economic Zone project after Kyaukphyu Deep Sea port project in Rakhine State

  Kyaukphyu Special Economic Zone project will be developed after Kyaukphyu Deep Sea port Project in Rakhine State, Union Minister for Commerce Dr. Than Myint told the Daily Eleven. “A framework agreement to launch the first phase of Kyaukphyu Deep Sea Port Project will be signed during this year. The first phase of Kyaukphyu Deep Sea Port Project will be developed with a total investment of US$ 1.3 billion,” added Dr. Than Myint, who is also of the Special Economic Zone Central Working Committee. Previously, the project was planned to develop with an 85 per-cent stake by CITIC from China and the rest by Myanmar. But after negotiations and adjustments in the time of the current government, the new investment ratio becomes 70-per-cent stake by the CITIC and the rest shouldered by Myanmar (15 % by the government and 15 % by the citizen-owned public company).
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  Myanmar trade with US still less than one tenth of Sino-Myanmar trade, despite having increased as a result of the Generalised Scheme of Preferences (GSP) that the US granted Myanmar

  US-Myanmar bilateral trade has increased as a result of the Generalised Scheme of Preferences (GSP) granted to Myanmar by the US, with Myanmar export increasing. U Aung Soe, director general at Myanmar Trade Promotion Organisation under Ministry of Commerce, said bilateral trade volume has reached US$700 million. “In the past, due to US sanctions, goods could not be exported directly and indirect export costs more. New export items are under study now. If we expand the export items, trade volume will significantly grow,” the director general explained. The primary export item to US is garment and the list also includes agricultural goods. In the future, small industrial products have a potential for export; although US wants to buy more aquaculture products, Myanmar side cannot export sufficiently to meet their demand, he went on.
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  Myanmar fisheries sector is not developing due to the lack of government and domestic banks’ financial assistance

  Investments in Myanmar’s fisheries sector are almost all from the private sector and it is time to consider more help from the government for the sake of improving domestic food security and generating more revenue from exports says U Win Kyaing, general secretary of the Myanmar Fisheries Federation. The lack of financing is one of the main things holding back the sector’s modernisation U Win Kyaing added. “Financial assistance can come not only from the government and domestic banks, but also foreign institutions. This should be considered by government sector,” he said. Myanmar is still very much an agriculture-based country, with 7.28 million hectares under cultivation, equal to the amount of virgin land. Almost 70 percent of the country’s population lives in rural areas and are involved in agriculture.
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  State Counsellor, Daw Aung San Suu Kyi called for more Japanese investment in Myanmar during her official visit to Japan

  State Counsellor Daw Aung San Suu Kyi, who is on a working visit in Tokyo, Japan, attended the Myanmar Silk Promotion Event facilitated by the ASEAN-Japan Centre and the Myanmar Investment Conference discussing under the topic ‘Strengthening the Bond Between Myanmar and Japan’, both held yesterday. The State Counsellor and her entourage made their way to the ASEAN-Japan Center at 1pm local standard time and were welcomed by Mr. Ichiro Aisawa, Chairman of the Japan-Myanmar Parliamentary Friendship Association, Mr. Hiroto Izumi, Special Advisor to the Japanese Prime Minister, Mr. Hideo Watanabe, Chairman of Japan-Myanmar Friendship Association, Mr. Keiji Fuji, Chairman of Daimatsu, and Mr. Masataka Fujita, Secretary-General of the ASEAN-Japan Centre. The State Counsellor and Union Ministers U Thaung Tun and U Kyaw Tin, and their welcoming party then cut the ceremonial ribbon to open the Myanmar Silk Promotion Event. They toured the displays of clothing sewn with Myanmar silk while officials gave explanations. The State Counsellor then received souvenirs from the ASEAN-Japan Center officials and took a documentary photo.
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  Myanmar Pharmaceutical Industrial Enterprise (MPIE) and NSKRE Residence (Myanmar) signed an agreement to build 12 storey high-rise structure in Tamway

  Myanma Pharmaceutical Industrial Enterprise-MPIE of the Ministry of Industry and NSKRE Residence (Myanmar) Co Ltd signed an agreement yesterday to build a high-rise structure on the land owned by MPIE in Tamway. The building will be constructed with the build-operate-transfer (BOT) system and it is set to include 230 apartments, fitness centre, minimart, restaurant, business offices, car parking. The land lease agreement was signed by U Ko Ko Aung, Managing Director of MPIE and Mr. Hirosato Fukimbara, Managing Director of NSKRE Residence (Myanmar) Co Ltd, in the presence of Union Minister for Industry U Khin Maung Cho.
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  Global oil prices are putting pressure on Myanmar’s economy and the US Federal Reserve bank has raised interest rates three times so far this year

  Higher US interest rates and global oil prices are putting pressure on Myanmar’s economy. The US Federal Reserve Bank has raised interest rates three times so far this year. The latest increase of a quarter percentage point in the benchmark federal funds rate, lifting it to a range of 2 to 2.25 percent, came in September. Emerging markets are expected to be hardest hit from capital outflows as investors who had been looking overseas for higher returns pull their money back to the US. Myanmar will be among many countries in the world that feel the effects of a strong dollar, said U Than Lwin, KBZ Bank adviser and former deputy governor at the Central Bank of Myanmar (CBM). “The US is expected to raise its interest rates at least one more time this year so it’s sure that this will hurt domestic exchange rates to some extent. There is also a concern about whether action will be taken against unlicensed forex dealers as unregulated trading could destabilise the exchange rate,” U Than Lwin explained.