ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  New Union Minister for Planning and Finance raised hopes for better economic management after two years of lackluster leadership

  PLANNING AND finance is perhaps the most important ministry in the civilian government, after the President’s Office and State Counsellor’s Office. Yet for more than two years, the National League for Democracy entrusted the minister’s position to someone who was widely considered ill-equipped for the role. U Kyaw Win has been described as honest and reliable. More often, the words indecisive and incompetent are used. What is perhaps most surprising is that his resignation on May 25 was the result of a corruption investigation. It has been clear to most since soon after the NLD took office in March 2016 that he was not the right man for the job, yet State Counsellor Daw Aung San Suu Kyi refused to heed calls for his removal. His replacement, U Soe Win, the former head of the Myanmar branch of Deloitte, assumes the role at a time of apparent macroeconomic stability. Economic growth, inflation, the budget deficit and current account are all at their healthiest level in years. But beneath the surface, all is not well. The private banks are teetering as they struggle to comply with new prudential regulations, while planned reforms and market liberalisation have stalled.
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  Experts warn that a local firm’s plans to mine sand in Tanintharyi Region would be highly damaging to a nearby pearl farm, biodiversity and fisheries and livelihoods of local communities

  A local company plans to extract 5 million cubic metres of sand over five years in sensitive coastal areas in Tanintharyi Region without legally-required environmental assessments. Experts warn that the proposed sand mining will be highly damaging to a nearby pearl farm, biodiversity and fisheries and livelihoods of local communities. The issue highlights some of the problems companies face when pursuing development plans in the frontier economy. Two official documents seen by The Myanmar Times reveal that Kyaw KS Development Trading Co Ltd, registered as a local company in Yangon Region, is seeking approval to extract 5 million cubic metres over five years in Tanintharyi Region, claiming that there will be “no environmental damage”. There was no mention of environmental assessments. Notice No. KDTC-Sea Sand 42/2018 from Kyaw KS, dated May 25 and signed by township administrator Tin Myo Aung, argues that the site of the sandbanks is “13 miles away from A Lae Man Island, where the locals live, and it does not affect the local fishing sites”, and that the extraction will attract investments for the regional government and residents. The letter suggested a “ground survey” and examinations to be conducted to check if there is overlap between the mining area and fishery sites.
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  Foreign investors who plan to invest in domestic banks still need to be reviewed by the Central Bank of Myanmar (CBM)

  Foreign investors who plan to invest in domestic banks still need to be reviewed by the Central Bank of Myanmar (CBM)
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  Government promotes the sustainable development of the tourism sector through a Public- Private Partnership system

  Promoting tourism sector in Myanmar requires more cooperation through the Public-Private Partnership system between the government and the people, said Vice President U Henry Van Thio yesterday at the Myanmar Tourism Conference in Nay Pyi Taw. He also urged all participants of the conference to make the best and most effective discussions to create a conducive enviroment for the travel sector in Myanmar. Vice President U Henry Van Thio, Chairman of the Central Committee for the Development of the National Tourism Industry (CCDNTI), made the speech at the opening ceremony of the Myanmar Tourism Conference 2018. The ceremony was attended by former President U Htin Kyaw and wife Daw Su Su Lwin, union ministers, Nay Pyi Taw Council Chairman and wife, state/region ministers, departmental heads, diplomats, travel entities and officials. He also expressed his hope that the national-level conference will support the implementation of the tourism sector development. The coordination meetings of CCDNTI were held twice last year.
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  Partnership between Thai digital advertising firm 360 Innovation and local marketing services agency Pintale responds to opportunities in Myanmar’s digital transformation

  Thanks to an explosion of investment in the past couple years, around 90 percent of people in Myanmar currently have access to smartphones with Internet connections, according to the Myanmar Computer Federation. From a marketing perspective, this situation presents an unprecedented opportunity to dramatically increase exposure of products and services inside the country and beyond. One group that has emerged to respond to these opportunities is Pintale360', a partnership formed in March 2018 between leading Thai digital advertising firm 360 Innovative and local marketing services agency Pintale, operating under Mandalay Advertising Group. The partnership hopes to build a bridge between traditional marketing and the digital transformation that is already well underway in Myanmar. In an exclusive interview with Mizzima, 360 Innovative Vice President for Business Development Ying Amekong and 360Pintale' Managing Director Kyaw Zay Ya talked about their hopes for the future.
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  Myanmar is advised to learn from Sri Lanka’s experience on loans for Hambantota Port when mulling Kyaukphyu SEZ (Mr. Sean Turnell, Economic Advisor)

  A senior civil servant has branded the debt concerns raised by Sean Turnell regarding the proposed deep-sea port in Kyaukphyu “baseless”, while the economist insisted that Myanmar should not need to borrow anything for the SEZ project Sean Turnell, economic adviser to State Counsellor Daw Aung San Suu Kyi, commented during a recent seminar held in Singapore that the US$7.5 billion estimated price tag for the Kyaukphyu deep-sea port “crazy” and “absurd”. “That’s way, way, way beyond what you would need for something like that, and this is something the government has paid attention to.” The precedent set by the $1 billion Hambantota port in Sri Lanka, where the government in Colombo borrowed heavily to construct the port, but couldn’t repay the loans and had to give China a 99-year lease for debt relief, is “the example that stands out, that has been really taken notice of in Myanmar,” according to the adviser. To raise sufficient capital for the Kyaukpyu port, the government “will have to borrow from the Export-Import Bank of China about $2 billion to $3 billion,” he went on. “So in other words what’s on the table here is exactly what was on the table in Sri Lanka.”
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  Discussions on deal between Max Energy Company and Shell Brands International are underway to operate petrol stations under the Shell brand

  A July 2017 deal between Max Energy Company and Shell Brands International to open petrol stations under the Shell brand in Myanmar is still being discussed. The deal involves Max Energy owning and operating petrol stations under the Shell brand. It will also see Shell over the next three years expand beyond oil and gas exploration to retail and distribution of its fuels and lubricants in Myanmar. Meanwhile, Max Energy, which currently imports petrol to supply its filling stations across the country, will have all its fuel needs supplied by Shell International Eastern Trading Company. That will help it ensure security of supply and quality as well as reduce the costs associated with importing petrol, such as logistics and storage. Under the deal, Max Energy’s filling stations in Myanmar will be rebranded under Shell. Consumers can then buy Shell petrol, including Shell V-Power, which is similar to race fuel used by Scuderia Ferrari during the 2017 Formula One World Championship.
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  The new Yangon city project is expected to increase foreign direct investment despite some criticism over the regional government’s involvement in commercial activities

  Despite some criticism over the regional government’s involvement in commercial activities, the new Yangon city project is expected to attract new investments from international players over the next few years, according to Phyo Min Thein, Yangon region chief minister. He said the government would speed up the development of Yangon new city, as it would be complementary to rapid growth of the existing commercial hub. “This project will create two million jobs, support local businesses and attract foreign companies. It will also see the development of world-class sustainable and reliable infrastructure and include integrated, affordable living for all segments of the community,” he said. Building a strong industrial base would create jobs that will ensure trickle-down benefits for other sectors and benefit the country and its people over time, he said. According to Phyo Min Thein, the regional government has proposed a site area of 88,525 rai (14,164 hectares) to the west of Yangon river for the new city development. He said a new special economic zone and deepsea port would also be implemented on the proposed site area of 126,464 rai (20,234 hectares) to be aligned with the project.
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  Government will provide more support to local SMEs in gaining access to technology to produce value add products

  The government will provide more support to local small and medium enterprises (SMEs) which lack the technological knowhow enabling them to add value to finished goods, as this places them at a disadvantage to international peers and results in missed job opportunities for local residents. “In Rakhine State, for example, bamboo is cut down and directly imported to India. Most crops are exported raw. No value is added, which results in lower margins for cultivators and fewer jobs for the people,” said Daw Aye Aye Win, Director General of the Directorate of Industrial Supervision and Inspection (DISI). DISI falls under the remit of the Ministry of Industry and is responsible for helping SMEs gain access to technology, market access and financial support. DISI also conducts safety inspections at industrial workplaces.
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  China has proposed the new infrastructure projects list which will be implemented along the China- Myanmar economic corridor

  China has proposed a list of infrastructure projects to be implemented along the China-Myanmar economic corridor. The projects are expected to meet basic infrastructure needs in Myanmar as well as enhance China’s strategic footprint within the country. Last week, a Chinese delegation led by Yang Haodong, Party Secretary of the Lincang Municipal Committee, presented the proposal to officials from the Directorate of Investment and Company Administration (DICA) and Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). The list of projects includes construction of Kwanlon Bridge and a highway and railroad connecting Chinshwehaw and Lashio in Shan State. The Chinese also proposed approving Chinshwehaw as an international border gate and construction of a Special Economic Zone (SEZ) in the town as part of efforts to boost trade and tourism between China and Myanmar. Cross border agriculture cooperation between the two countries was also discussed.