ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Ministry of Electricity and Energy (MOEE) is drafting a renewable energy law in order to speed up energy sector development in Myanmar

  The Ministry of Electricity and Energy (MOEE) is drafting a renewable energy law to develop the sector, said U Maung Maung Kyaw, Chief Engineer from the Department of Renewable Energy and Hydropower Plants under the MOEE. The ministry is aiming to generate 8 percent of the country’s electricity through renewable sources of energy by 2021. By 2025, the target is for 12pc of all electricity generated in Myanmar to be renewable. “We have plenty of natural resources such as solar and wind power. What’s lacking is legislation to govern the development of renewable energy. Without the law, investors are not protected and we do not have a system for providing incentives,” said U Maung Maung Kyaw. “We understand the situation and will try to enact a law to govern renewable energy to speed up development,” he added. The government will prioritise the development of solar energy, followed by wind energy, U Maung Maung Kyaw said.
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  US listed power management company, Eaton Corporation, will expand into Myanmar to provide technology solutions through a partnership with Myanmar Golden Rock International Co (MGR)

  US-listed power management company Eaton Corporation announced its expansion into the Myanmar market through a partnership with Myanmar Golden Rock International Co (MGR), which provides technology solutions in the country, on Septemer 18. Together with MGR, Eaton will bring its expertise in power management technologies to the data center, healthcare, utilities and commercial building sectors with the aim of improving the reliability of existing and newly-developed power generation, transmission and distribution infrastructure in the country. Kidsada Santisak, Eaton country manager for Indochina West, said Myanmar displays growth potential in the power and energy market, with only a third of the country’s population currently enjoying access to a stable supply of electricity.
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  Myanmar Licensed Contractors’ Association urged Yangon Regional Government to ease newly enacted buildings restrictions

  The Myanmar Licensed Contractors’ Association urged the Yangon Regional Government to ease newly enacted building restrictions, such as the reduced ground floor height requirement, and bans on penthouses. The Engineer Department (Construction) under Yangon City Development Committee (YCDC) issued an order back in April instructing contractors to reduce the height requirement for ground floors from 17 feet to 12 feet. There were no changed concerning penthouses. “At the time the new instruction was issued, there were a number of projects agreed between the owner and contractor under the old rules. We need to change the agreements under the new instruction, but owners will not accept the recent change because its harder for them to meet the new requirement. Therefore, we are urging the government to ease this new requirement,’’ U Lar Zel, General Secretary of the association, told Myanmar Business Today.
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  Ministry of Industry invited companies to submit Expression of Interest (EOI) for the consideration on a real estate development project in Kachin State

  The Ministry of Industry (MIC) has invited Express of Interest (EOI) on a real estate project for a shopping mall, offices, and a hotel on 0.359 acre of land at No.139/D, Bo Gyoke Aung San Road, at the corner of Zay Gyi Road, in Kachin State. The plot is owned by the Department of Industrial Supervision and Inspection. The project will be developed under a Build-Operate-Transfer (BOT) system. The department will provide land and the company will provide the financial investment for the project. “We can only afford to purchase the land. Therefore, the applicant company must provide a business plan showing how much it will invest and how much profit the project will generate. We will choose the tender winner based on this information,’’ said U Tin Shwe Oo, Director of Department of Industrial Supervision and Inspection. The Ministry of Industry operated Win Thuzar Shop on the land in the past. Now the department is inviting submissions for an EOI to come and inspect the land, he added.
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  Ministry of Commerce (MOC) banned the Multi-Level Marketing (MLM) firms in Myanmar with the issued notification on 18 September 2018

  The Ministry of Commerce (MOC) on September 18 issued notification (46/2018) which prohibits the business of multi-level marketing (MLM) in Myanmar. The ban will take effect immediately. Action will be taken against all MLM businesses found to still be in operation after the date of the issued notification, under the Essential Supplies and Service Law. The law states that those found to be in violation of the regulations could be punished with a minimum of six months up to a maximum of three years in jail. There will also be a fine not exceeding K500,000. The move comes after the Food and Drug Administration (FDA) met with 41MLM companies and conducted audits on the companies’ books in February.
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  Domestic fuel prices soared over 13 percent within three and a half months due to the foreign currency exchange rate significant increase starting from June 2018

  Fuel prices have soared over 13 per cent for more than three and a half months, peaking at Ks4,517 per gallon for 92 Ron, Ks4,744 per gallon for 95 Ron, Ks4,653 per gallon for diesel and Ks4,698 per gallon for premium diesel, according to live rates from fuel stations. In the local market, fuel retail prices are fixed by Myanmar fuel oil import and distribution association are Ks1,025 per liter (Ks4,653 per gallon) for diesel, Ks1,035 per liter (K4,698 per gallon) for premium diesel, Ks995 per liter (Ks4,517 per gallon) for 92 Ron and Ks1,045 per liter (Ks4,744 per gallon) for 95 Ron on September 17. It is increased to 12.63 per cent for diesel, 12.89 per cent for premium diesel, 13.06 per cent for 92 Ron and 12.36 per cent for 95 Ron in compared with the fuel prices in June 3. Global oil prices soared significantly in the second week of October, 2017 and reached to US$51 per barrel in early October, US$55 per barrel in early November, US$58 per barrel in early December, US$61 per barrel in early January, US$64 per barrel in early February, US$68 per barrel in late April, US$72 per barrel on May 21 and US$74 per barrel on July 10. It is declined to US$69 per barrel on August 17 and US$65 per barrel on August 20. It was increased again to over US$70 on August 30 and hovered around US$69 per barrel on September 17.
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  The 2nd Myanmar- German renewable energies symposium was held in Yangon to promote renewable energy powering Myanmar’s industrial growth with a special focus on energy obtained from photovoltaic cell and biomass

  The 2nd Myanmar-German renewable energies symposium was held at Rose Garden Hotel, Yangon, yesterday. The symposium was organised by the Delegation of German Industry and Commerce in Myanmar (AHK) jointly with “the Energy Solutions made in Germany” initiative of the German Federal Ministry for Economic Affairs and Energy (BMWi), and with support from the Berlin-based Renewables Academy AG (RENAC). The event was attended by local and foreign entrepreneurs, including representatives from eight German public and private companies from renewable energy sector. This year, the symposium was dedicated to renewable energy powering Myanmar’s industrial growth with a special focus on energy obtained from photovoltaic cell and biomass. At the ceremony, German businesses discussed under the titles, “industrial growth with clean energy” and “innovative models for green business growth”, while local and foreign businesses and officials from private renewable energy sector conducted panel discussions under the topics “solar power for Myanmar’s industry, an underutilized resource in Myanmar’s energy mix” and “stepping forward together for green industrial growth.”
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  Siam Cement Group (SCG) foresees higher growth in 2019 despite the possibility that this year's growth might fall below target due to inflation and flooding across the country

  Despite bright outlook for Myanmar in the coming years, the Siam Cement Group (SCG)’s growth target for the country this year may be hit by inflation and flooding across the country, said Surachai Pomjindachote, the Thai firm’s country director for Myanmar. "For this year, Myanmar is facing floods and inflation, so total growth of the country might fall below target,” he said in an interview. “But in 2019, we foresee higher growth compared to this year’s.” Yet, in the first half of this year, the firm’s Myanmar operations raked in US$152 million in revenue from sales, a 14 per cent increase year on year. SCG in Myanmar owns $366 million in total assets with 5 subsidiaries and approximately 350 employees, according to a report on its second-quarter performance. “Myanmar’s laws and regulations support foreign investment. But uncertainty and challenges remain, such as the Kyat depreciation, natural disasters and some minor problems. This may slow down economic growth,” he said.
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  Myanmar will focus on investments in the human factor to keep up and remain relevant in the Fourth Industrial Revolution (4IR)

  During her speech concerning Myanmar’s place in the Fourth Industrial Revolution (4IR) at the World Economic Forum on Asean in Hanoi yesterday, State Counselor Daw Aung San Suu Kyi stressed the value of human skills and talent in ensuring the country remains relevant and on par with its neighbours in the years to come. According to its Wikipedia entry, the 4IR is the fourth major industrial era since the initial Industrial Revolution in the 18th century. The 4IR is marked by technology breakthroughs in many fields including robotics, artificial intelligence, the Internet of Things and 3D printing, all of which are disrupting entire industries and rendering some obsolete. “Yet, data show that 50 percent -75pc of new technology implementations have failed regarding quality and reliability due to the neglect of the human factor. In Myanmar, we cannot afford to fail because we are already so far behind,” Daw Aung San Suu Kyi said.
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  Ministry of Commerce is now training future commercial attaches to send to countries which have strong potential for trade with Myanmar in the coming months

  IN A BID to boost trade with foreign countries, Myanmar will appoint new commercial attaches in more countries in the coming months, said a government official. Khin Maung Lwin, assistant secretary and spokesperson of the Ministry of Commerce, said the ministry is currently training some officials to be sent to foreign countries which have strong potential for trade with Myanmar. “We hope to replace the existing commercial attaches with new ones by December this year, and have planned to appoint commercial attaches for four new destinations including Africa,” he said. The official lauded the existing commercial attaches’ performance but said they must be replaced as their term lasts only three years, the same tenure as that of other attaches working for the Ministry of Foreign Affairs.