ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar Investors Development Association (MIDA) will make efforts to unlock Myanmar's investment potential and to promote its economic goals by engaging with local and foreign investors (U Khin Maung Aye, Chairman of MIDA)

  HE MYANMAR Investors Development Association (MIDA), an alliance of large-scale local enterprises, will help the government achieve its economic goals by actively engaging with local and foreign investors, according to its chairman KhinMaung Aye. ”For our country to grow further, we need to create thousands of jobs for our citizens. Job creation entirely depends on investments we receive from local and foreign companies,” he said. “Foreign investors still have some difficulties investing in Myanmar while local businesses are facing challenges on how to make contact with foreign counterparts. It is still hard for the private sector to ensure proper contacts with foreign investors. That is how we came to realise the urgent need for a medium that can help local businesses and foreign investors get connected.” With this objective in mind, MIDA was established in early 2015 as a Yangon-based non-profit organisation which aims to create a linkage between the locals and foreigners willing to invest in Myanmar, chiefly in infrastructure and labour-intensive projects. Focusing on Myanmar’s emerging market and development potential, the organisation aims to provide the latest information and necessary assistance to investors. That would enable them to make important decisions and capitalise on investment opportunities arising out of the nation’s improving political climate.
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  Foreign investors will become less interested in new projects if the government is unable to solve the problems and difficulties in the current industrial zones, leading to the manipulation of land prices

  Foreign investors will become less interested in the new projects if the government is unable to solve difficulties in the current industrial zones, leading to the manipulation of land prices, said Yan Shin, the regional MP of Mayagone Township Constituency-1. The MPs debated Yangon Region Government local and foreign investments for urban development, at the sixth regular session of Yangon Region Parliament. “It is sure that foreign investors will become less interested in the new projects and blame it on weak management if the government is unable to solve the problems systematically. As a result, the people who have extra money will buy land spaces and then manipulate land prices,” he added. According to the report, there are 29 industrial zones in Yangon. The government is responsible for dealing with the fact that local and foreign investors are less interested in the projects due to skyrocketing land prices and lack of systematic water supply, power supply, roads and sewage disposal system.
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  British expertise can support direct investment, including capital investment, technology through exports and technology transfer to make Myanmar an economic power house

  Myanmar should tap into British expertise and experience to leapfrog its capital markets, schools and regulatory frameworks, while no financial sector in the world is more relevant to Myanmar’s development than London’s. Given the mounting political difficulties, only with sufficient foreign investment can the country move the economy towards revival and rebirth against all the odds. In this regard, the backing of UK businesses and transfer of skills and knowledge are essential and imperative. The UK’s Department for International Trade organised an outward mission to the UK in March, led by U Kyaw Myo, deputy transport and communications minister. The delegation included senior officials and 27 private sector representatives. The visit provided a platform for stakeholders and investors from the two countries to explore commercial opportunities. Subsequently, The Myanmar Times interviewed senior officials from the Directorate of Investment and Company Administration (DICA), Myanmar Trade Promotion Organisation, British Department for International Trade as well as experts on the current challenges and priorities for UK-Myanmar economic relations.
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  The annual Myanmar- EU Economic Forum will be held in Nay Pyi Taw on 6 June 2018 and aims to resurrect much needed investors' confidence

  The annual Myanmar-EU Economic Forum will be held in Nay Pyi Taw on June 6 this year. The forum, hosted by European Chamber of Commerce in Myanmar (EuroCham), will be the second edition of the chamber’s signature advocacy event. The panels will be joined by business leaders, senior officials and international experts, facilitating discussions between stakeholders from Europe and Myanmar on economic issues. The areas will cover energy, construction, health, logistics, digital innovation, automotive, anti-illicit, legal, agrobusiness and garments. EuroCham will also issue its second White-Book, a bundle of position papers written by industries themselves. Filip Lauwerysen, EuroCham’s chief executive, told The Myanmar Times that this year covers a few more industry groups compared to last year, including CSR, tax-affairs and beyond. “This means the conference will touch on a much wider part of European investment and give all participants an extensive outline of the bottlenecks European investors and foreign investors in general, are facing and how we can tackle these challenges through improved cooperation with the Myanmar authorities; assisting the Myanmar authorities in achieving their economic development by applying best practice in other ASEAN countries.”
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  Over the past two years, the Chin State government made concerted efforts to achieve all round development in every socio-economic sector to support and encourage small and medium-sized enterprises

  The Chin State Government has made concerted efforts to achieve all-round development in all socio-economic sectors. In order to spur sustainable development, plans are under way to support and encourage small and medium-sized enterprises, development of health and education sectors, and conservation of the natural environment. The authorities concerned of the Chin State Government have been able to serve the interest of the people in Chin State with sweeping reforms in various spheres during the two-year period in office. With a view to ensuring the improvement of socio-economic status of local residents, peace and stability in the region and rule of law and multi-sector development, the Chin State Government has made dramatic efforts to improve transport infrastructure, electricity and agriculture that are favourable to the region’s soil, to support its strategies to develop the area’s tourism sector and to promote small and medium-sized enterprises (SMEs) in the region. The Chin State Government is committed to providing necessary assistance for regional development tasks, improving the telecommunications system, constructing the inter-township road, availability of electricity and upgrading of schools and hospitals presented by officials concerned
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  Myanmar court will issue a ruling on a land rights case between 33 farmers and Tatmadaw linked Myanmar Economic Corporation (MEC)

  The Myanmar court will today hear and issue a ruling on a land rights case between 33 farmers and Tatmadaw-linked Myanmar Economic Corporation (MEC). The hearing, which will take place at the Kyauktan township Court in Yangon, will determine whether the farmers, who live next to Thilawa Special Economic Zone (SEZ), are illegally trespassing on those grounds. According to the farmers, the 600-acre plot of land under question was taken over by the Ministry of Construction (MOC) in 1996 for K20,000 per acre. However, the land was left vacant by the MOC. As such, the farmers continued farming paddy in the area. In 2002 though, the MEC began building a ship-breaking facility across 100 acres of the 600-acre plot. Nevertheless, the farmers continued their farming activities on the remaining 500 acres.
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  Once the draft regulations of the Companies Law comes into effect on August 1, 2018, existing companies registered in Myanmar have to re-register on an electronic system

  Public consultations of the draft regulations end on May 31. Existing companies registered in Myanmar have until January 31 next year to re-register on an electronic system once the new Companies Law and related regulations come into effect on August 1. Draft regulations of the Companies Law, which was enacted last December, have been released by the Directorate of Investment and Company Administration (DICA). Public consultations of the draft regulations end on May 31. Feedback can be submitted by email or fax until then (dica@mptmail.net.mm, lawreform.dica.mm@gmail.com, and fax 01 658135). The law and regulations, called the Myanmar Companies (Electronic Registry System and Miscellaneous Matters) Regulations 2018, will be enacted on August 1, according to DICA. U Aung Naing Oo, DICA director general, told The Myanmar Times that the new law modernises practices and streamlines procedures for businesses, and introduces new incentives for international investors to invest in the country.
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  To consolidate its position as Asia' last frontier market, Myanmar needs to create a clear and transparent regulatory environment to attract investment and finance the economy (Oxford Business Group)

  MYANMAR’S hopes of becoming Asia’s last frontier market would be realised only if the government could create a clear and transparent regulatory environment for attracting investment and financing the economy, according to Patrick Cooke, regional editor for Asia at Oxford Business Group (OBG), a global research and consultancy firm. “It is imperative that the government devises a viable strategy to ensure its young population is equipped with the skills and entrepreneurial mindset required to shape the future economy,” he said. Cooke said the nation must capitalise on its position between two emerging superpowers-China and India, without becoming beholden to either. He maintained optimism that Myanmar could become the fastest-growing economy in Asean in the coming years, despite a number of challenges. In the latest edition of the “Business Barometer: OBG in Asean CEO Survey”, top executives from Myanmar were among the most pessimistic about the domestic tax environment. They were most negative about business transparency levels in Myanmar, similar to the perception of those from Vietnam.
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  In order to make financing more widely available, the Central Bank is steering the bank lending model away from overdraft loans with immovable assets as collateral

  IN THE 20 years U Min Naing has been running his company, Doh Pyi Thit, he has never taken a loan from a bank. His is not a small business; Doh Pyi Thit has built railways, large buildings and operated mines. “When I started the company I just used my own money to cover all operations,” he said. If he needed more, he borrowed it from his family, or business partners. Then, several months ago he came across an opportunity to buy a tungsten mine in Tanintharyi Region for K230 million (around US$180,000). He decided to take out a loan to fund the acquisition and approached two of Myanmar’s largest banks. However, Min Naing found to his surprise that he was unable to meet the collateral requirements. Both banks asked him to pledge landed property as security. They said his house in Yangon, which is worth around K250 million, was unsuitable because he shares ownership. They also rejected several acres of valuable, but undeveloped, land in the industrial township of Hlaing Tharyar. “This did not hurt me too much, as I can still run my business, even if I can’t expand it. But I learned that we cannot yet rely on the banking system for loans,” he said.
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  Yangon regional government strives to make Yangon the centre of investment in Southeast Asia

  Yangon Region will try to become a centre of investment in Asia, according to a press conference on organising Yangon Investment Forum 2018 held at Cooperative Business Centre on May 2. “Yangon is a strategic place in Southeast Asia. Investors who want to reap profits from Myanmar, Southeast Asia, China and India need to know investment and economic opportunities of Myanmar. Yangon City is the most suitable place for investment,” a statement quoted Yangon Region Chief Minister Phyo Min Thein. He said his government would try to make Yangon a commercial hub by making best use of its advantages such as strong infrastructure and links with other cities.