ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar authorities invite foreign insurance companies to operate and provide investment, technology and other requirements in the country

  Myanmar authorities are inviting foreign investments in the country's insurance sector, the official Global New Light of Myanmar reported Saturday. The authorities announced last month to allow foreign insurance companies to operate and provide investment, technology and others requirements that are needed in the country's insurance sector. At present, some 1,200 agencies have been granted licences by the Insurance Business Regulatory Board so far, with comprehensive motor insurance, fire insurance, life insurance, health insurance and travelling insurance topping the lists. Myanmar earns only 0.07 percent income from insurance services at which only 86 in 1,000 people has insurance, the report said. Foreign Direct Investment (FDI) mainly enters into the country's agricultural, livestock and fisheries, manufacturing, power, transport and communication, hotel and tourism and real estate sectors.
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  Ministry of Construction seeks up to US$1.5 million private investment for a 47.5 km elevated ring road in Yangon

  YANGON – The Ministry of Construction’s proposal for a 47.5-kilometre elevated ring road in Yangon could require as much as US$1.5 billion in private investment, sources have told Frontier. In January the ministry unveiled plans to conduct a tender for a 20.5 kilometre elevated highway but last week announced that the project had been expanded to a four-lane elevated ring road. Sources have put the likely cost of the highway at $20 million to $30 million per kilometre, depending on the number of exits and other technical factors, for a total price tag of between $1 billion and $1.5 billion. When the 20.5km project was announced in January the cost was estimated at $350 million to $400 million. On May 18, the ministry invited expressions of interest from local or international companies “interested in designing. engineering, financing, constructing, operating and maintaining” the toll road through a long-term public-private partnership concession agreement. The EOI will be followed by a tender, most likely at the end of the year.
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  Myanmar’s first antibiotic producing plant, a joint venture between Australia based drug maker Zifam and Pyrex Trading Co.,Ltd. Myanmar, was opened in the Thilawa Special Economic Zone to meet the domestic drug demand

  To meet the domestic drug demand, an antibiotic producing plant was opened in the Thilawa Special Economic Zone on May 12. Australia based drug maker Zifam will produce three categories of drugs under the name of Zifam Pyrex Myanmar Co., Ltd in collaboration with local company named Pyrex Trading Co., Ltd. “We are glad to announce antibiotics locally. Sometimes, drug shortages occur because imported drugs haven’t arrived on time. Having a local plant will reduce money flowing outside of the country, and illicit drugs and fake drugs from flowing in,” Dr. Khin Thiri, Member of Director from Zifam Pyrex Myanmar Co., Ltd, said. The company grantees to offer high quality drugs with lower prices compared to imported drugs. “The facility will create jobs and give technical know-how to local workers,” Dr. Myint Htwe, Union Minster of the Ministry of Health and Sport, said.
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  The government is working together with the private sector to promote local SME goods for export to narrow the trade deficit in Myanmar

  The government is working together with the private sector to promote locally produced goods, including those made in the states and regions beyond Yangon. The aim is to export the goods and narrow the trade deficit, which is in line with the National Export Strategy. Last week, the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) together with the government held the Unique Product, Unique Region workshop in Pathein township, Irrawaddy State. The workshop aimed to showcase, identify and promote products made in Pathein with export potential. Local businesses such as Pathein Umbrella, Pathein Pawsanhmwe Rice Enterprises attended the workshop. The UMFCCI is raising efforts to connect more products made by local small and medium enterprises (SMEs) to the National Export Strategy, which now prioritises products such as beans, pulses and oilseeds, fisheries, forestry products, textiles and garments, rice and rubber. Among the goods produced by local SMEs that are currently exported is the iconic Pathein umbrella, which is now being sold in Europe. “Our products are quite popular in Europe, especially Germany. Now, we are looking to export to the UK and US,” said a representative from Pathein Umbrella.
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  The Myanmar government plans to issue a Land Used Policy to attract local and foreign investments into the livestock sector: the policy will address issues related to using farmland for other purposes and the use of uncultivated land

  Myanmar is planning to issue a Land Used Policy to attract local and foreign investments into the livestock sector, according to U Tun Win Myint, Head of Yangon Regional Fishery Department, at the meeting held at Myanmar Fishery Federation on May 22. The Union Government is in the process of studying the regulations in Thailand, Vietnam, and China. The policy will address issues related to using farmland for other purposes, and the use of uncultivated land, he added. “Investors want to come in and invest, but they are hesitating because there is no clear regulation or policy. They come in, inquire about the potential, and just then leave,’’ Dr. Myint Sein, Vice President of MFF said at the meeting held in mid-May.
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  Myanmar and Thailand have agreed to resume deep sea port project this year after years of suspension

  Myanmar and Thailand have agreed to resume work on a deep sea port project this year, part of the infrastructure project of Myanmar's Dawei Special Economic Zone (SEZ) in southern Tanintharyi region, after several years of suspension, local media reported Wednesday. Under a fresh memorandum of understanding signed between the two countries, the Italian-Thai Development Public Company (ITD) is allowed to begin work again, according to a report by official media the Global New Light of Myanmar.
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  Baluchaung No.1 hydropower plant in Kayah State and Sedawgyi Power Plant in Mandalay Region will be renovated with loans of ¥10.787 billion yen from the Japanese government

  Baluchaung No.1 Hydropower Plant in Kayah State, and Sedawgi Power Plant in Mandalay Region will be renovated using ¥10.787 billion yen from Japanese Government. Baluchaung No.1 Hydropower Plant was built on the banks of Baluchaung Creek, 10 miles south east of Loikaw in Kayah State. A joint venture between NEWJEC Inc. and Nippon Co., Ltd. signed a contract with the Ministry of Electricity and Energy for consulting services to renovate the two hydropower plants on May 9. “Both of the plants have been operating for over 25 years under the ministry. In that time there hasn’t been a large scale renovation, so naturally this leads to mechanical malfunctions and lowered capacity. Therefore we decided to renovate,” U Win Khaing, Union Minister of the Minister of Electricity and Energy said.
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  Myanmar government’s efforts to accelerate reforms and to modernize the financial sector make Myanmar prepared for economic development amid growing global and domestic uncertainty

  GIVEN THE government’s efforts to accelerate reforms and to modernise the financial sector, Myanmar’s economy is projected to increase to 6.7 per cent next year, according to Ellen Goldstein, World Bank director for Myanmar, Cambodia, and Laos. She said at the launch of the latest Myanmar Economic Monitor that the medium term outlook for Myanmar remains positive despite some risks. She expects a surge in foreign investment flows to drive further growth. “The report shows that Myanmar’s economy is doing better this year, and we hope the country to maintain the momentum,” she said. “The government needs to ensure the growth is sustainable and inclusive. They need to find ways stimulate growth and investments to ensure financial inclusion.” Goldstein stressed an urgent need to address the emerging risks that could affect business sentiment and weaken future performance.
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  Myanmar Gems Enterprise suspended license renewals of expired blocks until new law stipulated, but over 8,000 acres of blocks are still actively mined with existing contracts

  More than 8,000 acres of jade and gem blocks backed by the State are expected to remain active until 2021, said U Aung Nyunt Thein, managing director of the Myanmar Gems Enterprise under the Ministry of Natural Resources and Environmental Conservation. This is after the Myanmar Gems Enterprise under the new government suspended renewals of expired blocks. As at April 30, there were 8,684 remaining jade and gem blocks in Mogok, Lonekhin, Hpakant, Mawlu, Mawhan, Khamti and Monghsu. “Since April 2016, the government has stopped renewing the licenses to mine at existing gem blocks. It has also suspended the licensing of new blocks. The remaining 8,000-odd blocks that are still actively mined are those with existing contracts. These will expire between this year and 2021,” said U Aung Nyunt Thein. In the past, permits to mine at the jade and gem blocks were given for terms of five years. “For now, all license renewals have been stopped. As the existing blocks expire, the number of active blocks will gradually be reduced,” he said.
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  U Win Myint has nominated U Soe Win as the new Minister of Planning and Finance, amid an ongoing investigation by the Anti-Corruption Commission on former Minister U Kyaw Win

  YANGON – President U Win Myint has nominated U Soe Win to become Minister of Planning and Finance, after approving the resignation on May 25 of former minister U Kyaw Win, amid an ongoing investigation by the Anti-Corruption Commission. Soe Win is the managing partner for Deloitte in Myanmar and a member of the National Economic Coordination Committee. He also sits on the board of the Renaissance Institute, a think-tank that advises the government on economic policy, and is a member of the Yangon Bar Council. A member of the NLD’s economic committee told Frontier that two other candidates had also been in the running for the role: U Myo Myint, chair of the Renaissance Institute, and Deputy Minister for Planning and Finance U “Winston” Set Aung.