ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar businesses urged the government for lower taxes to alleviate pressure from the rising dollar exchange rate and slowing economy in recent months

  Myanmar businesses are urging the government to lower the country’s tax rates to alleviate pressure from the rising dollar exchange rate and slowdown in demand in recent months. According to the quarterly Business Sentiment Survey by the Union of Myanmar Federation Chamber of Commerce and Industry (UMFCCI) released last month, Myanmar’s high taxation rates are among the top reasons for the weakening economy. The survey, which revealed a 25 percent year-on-year drop in overall business confidence, also showed that three out of the five reasons for the lack of confidence in economic growth were related to taxation. During a meeting between Daw Aung San Suu Kyi in late August, business leaders, including UMFCCI chair U Zaw Min Win and U Shein Win, chair of the Myanmar Construction Entrepreneurs Association (MCEA), urged the State Counsellor to reduce Myanmar’s existing tax and interest rates to draw more foreign direct investments (FDI) to the country. The Directorate of Investment and Company Administration (DICA) is expecting US$5.8 billion in FDI in 2018-19, which is unchanged from the previous 2017-18 year ended March 31, during which Myanmar received $5.7 billion in FDI for 222 projects. In comparison, the country received $6.6 billion for 135 investments in 2016-17
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  Exclusive interview with Mr. Yacine Chouabia, Business Development Director for Asia Électricité de France, on the 1,050 megawatt Shweli 3 hydropower plant project in northern Shan State

  In December 2015, state-owned utility company Électricité de France signed a memorandum of understanding with the government for the 1,050-megawatt Shweli-3 hydropower project in northern Shan State. After several years of policy uncertainty, the government is keen to move ahead with hydropower projects and at a power sector working group meeting on August 8, Minister for Electricity and Energy U Win Khaing said it would soon issue notices to proceed to several developers, including EDF. Mr Yacine Chouabia, the company’s business development director for tells Frontier’s Thomas Kean about EDF’s plans for Shweli-3, which could see the size of the project scaled back.
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  Myanmar Government authorities are exploring ways to resume the development of Dawei Special Economic Zone (SEZ) and Kyaukphyu SEZ projects soon (U Khin Maung Cho, Union Minister for Industry)

  Arrangements are being made for development of the Dawei Special Economic Zone (SEZ) and Kyaukphyu SEZ projects to resume, said U Khin Maung Cho, Minister for the Ministry of Industry, on behalf of the Ministry of Commerce at the Pyidaungsu Hluttaw. The government has been exploring ways to restart development of the US$8 billion Dawei SEZ, which has been suspended since 2013. This came after developer Italian-Thai Development Company (ITD) withdrew from a 2008 agreement to develop Dawei SEZ due to financial constraints. There were also complaints from the local community regarding lack of adequate compensation for the construction and potential pollution and disruption caused as result of developing the SEZ. ITD withdrew from the concession agreement in 2015. In 2015, Thailand offered Myanmar a soft loan of 4.5 billion baht at an interest rate of 0.1pc to upgrade a two-lane tarred road from Dawei SEZ to Htee Khee, near the Thai border. Construction work is currently under way, U Khin Maung Cho said.
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  World Wildlife Fund- Myanmar (WWF-Myanmar) signed a MOA with Kayin State Government to support renewable energy by assisting investors to enter the energy sector and producing electricity with a lower price in Kayin State

  The World Wildlife Fund-Myanmar (WWF-Myanmar) signed a Memorandum of Agreement (MoA) with Kayin State government for renewable energy support in Kayin State at state government office on 10 September, according to WWF-Myanmar. According to the MoA, WWF-Myanmar will conduct surveys to explore possible places to produce renewable energy, assist in connecting with investors to enter into renewable energy sector and in producing electricity at a lower price.
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  A local firm, Parami Energy Group of Companies will distribute liquefied petroleum gas (LPG) in Myanmar under its own brand

  Parami Energy Group of Companies, a local firm, will distribute liquefied petroleum gas (LPG) in Myanmar under its own brand, CEO U Pyi Wa Tun told The Myanmar Times. Parami Energy, one of the two firms permitted by the government to import and sell LPG in the country, commenced wholesale distribution of LPG after winning the tender to hire state-owned Thanlyin refinery in 2017. Myanmar does not have the infrastructure needed to produce its own LPG. Going forward, the company will only distribute LPG under the Parami brand, he said. Currently, Myanmar imports around 5,000 tonnes to 7,000 tonnes of LPG. This is enough to cover just 5 percent of the total number of households in the country. Much of the imported LPG is now used for commercial purposes, such as in hotels, restaurants, tea shops and factories. In fact, LPG utilisation in Myanmar is the currently lowest among all the ASEAN countrie. The average household consumption of LPG in ASEAN is 90pc of total households and in Thailand, it is 95pc.
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  Myawady border trade in Kayin State volume slumps by USD$ 8.643 million when compared to the same period of last fiscal year

  From April 1 to August 24 during this fiscal year, the total trade volume at Myawady border in Kayin State amounted to US$ 320.783 million, down US$ 8.643 million compared with the same period last year, according to the Commerce Ministry. The decline in the border trade is linked to the facts that 13-ton trucks have been jammed for 20 days at the approach road of Gyaing-Pontun Bridge on the Myawady border trade route due to floods and Gyaing-Eaindu road section is badly damaged, said merchants. Until August 24 of this fiscal year, Myanmar exported goods worth US$ 31.488 million to Thailand, up US$ 11.09 million compared with the same period last year. In addition, Myanmar imported goods worth US$ 289.95 million from Thailand, down US$ 19.736 million compared with the same period last year. Border trade volume exceeded the target for the first six months. After the opening of No.2 Friendship Bridge, the trade between the two countries will increase twofold, according the Commerce Ministry, said Yan Naing Tun told the media after the Myanmar-Thailand Border Trade Joint Committee Meeting.
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  The Ministry of Electricity and Energy issued a Notice to proceed for the Shweli-3 hydropower project on the Shweli river near Moemeik town in northern Shan State

  The Ministry of Electricity and Energy (MOEE) last week issued a Notice to Proceed for the Shweli-3 hydropower project on the Shweli River, near Moemeik town in northern Shan State. The notice was signed between the MOEE and officials from France-based Électricité de France S.A (EDF), Marubeni Corporation and Myanmar Ayeyar Hinthar Company. The development signifies that the government is prepared to allow the private sector to participate in the business of generating electricity, said U Win Khaing, Union Minister of the MOEE. Negotiations will still have to be carried out to acquire approvals from the respective government organisations. The energy project was given the green light in accordance with the Paris Agreement and is necessary to promote cooperation between the government and foreign investors, Win Khaing added.
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  One day conference on Opportunity of Investment and One Belt and Road and Myanmar Development, organized by the Myanmar- China Friendship Association and Macau Myanmar Friendship Association was held in Yangon to attract more foreign investment by sharing investment opportunities in Myanmar

  One day conference for Opportunity of Investment and One Belt One Road and Myanmar’s Development was held on Monday in Yangon. This is the 1st conference jointly organized by the Myanmar-China Friendship Association and Macau Myanmar Friendship Association. It’s to attract foreign investment by sharing investment opportunities in Myanmar. President, Macau Myanmar Friendship Association, Jose Wong said “We organized this event to accelerate cooperation between Myanmar and Macau including business cooperation in Myanmar. We’re aiming for creation of investment opportunities through this conference. We will try to increase Macau businesses investment in Myanmar. So, we will sign MoU on business cooperation between Myanmar and Macau.” Myanmar One Belt One Road Development Association was formed in 2017 to serve as a bridge between Myanmar and China for development.
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  Yangon Stock Exchange organized the “YSX Expo 2018” in Yangon to increase individual investors including shareholders of listed companies in Myanmar to support the growth of Myanmar enterprises

  To increase the number of individual investors including shareholders of listed companies in Myanmar and to support the growth of Myanmar enterprises, Yangon Stock Exchange organized “YSX Expo 2018” in Yangon on Sunday. Managing Director, Yangon Stock Exchange, Yin Zaw Myo said “This expo is our 2nd edition with the aim of promoting and developing not only Yangon Stock Exchange but also Stock market in Myanmar. I hope the visitors will get a lot of financial literacy knowledge as well as opportunities and ways to investment in Yangon Stock Exchange. We have plans to organize this expo every year.” This YSX Expo 2018 also featured seminars and panel discussions by business experts including executives of 5 listed companies. Director General of Directorate of Investment and Company Administration stressed the importance of laws and investment process in Myanmar.
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  Myanmar’s trade deficit expected to reach just about USD $ 500 million in 2018- 2019 fiscal year as trade deficit declines year by year

  Myanmar's trade deficit is expected to reach only about USS$500 million in coming 2018-2019 fiscal year because trade deficit declines year by year, according to the Ministry of Commerce. Foreign trade value is also expected to reach US$31.1 billion in that year. In the 2017-2018 FY, international trade value was expected to reach US$29 billion – US$14 billion in export and US$15 billion in import. Meanwhile, trade deficit was expected to reach about US$1 billion. According to official yearly trade data, Myanmar's trade value amounted to US$11,137 million in export and US$16,578 million in import and US$5,441 million in deficit in 2015-2016 FY. Under the incumbent National League for Democracy government, traded amounted to US$11,999 million in export and US$17,211 million in import and US$5,212 million in deficit in 2016-2017 FY; and US$14,851 million in export and US$18,687 million in import and US$3,836 million in deficit in 2017-2018 FY.