ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Japan government agreed to lend over US$ 800 million for Dawei Special Economic Zone through the Japan International Cooperation Agency (JICA)

  The Japanese Government is planning to provide assistance for Dawei Special Economic Zone through The Japan International Cooperation Agency (JICA), according to Mr. Masayuk KARASAWA, JICA’s Country Representative to Myanmar. He said so in his remarks at the ground breaking ceremony for the JFE MERANTI Myanmar plant held on March 1 in Thilawa SEZ Zone (B). Seeing the success in Thilawa Special Economic Zone, Tanintharyi Regional Government is working on strategy for the region’s development plan, and he said that Japan will get involved in the SEZ depending on Myanmar’s government policy. “We are helping laying out a development plan, and also conduct surveys of what would be needed such as a port or electricity. The Myanmar government will consider what it should do based on the survey. We will get involved in the SEZ depending on how the development plan will be carried out,’’ Mr. Masayuki KARASAWA added.
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  Ministry of Electricity and Energy (MOEE) is still negotiating the terms of several power purchase agreements (PPA) on liquefied natural gas (LNG)

  The Ministry of Electricity and Energy (MOEE) is still negotiating the terms of several power purchase agreements (PPA) which will determine the amount of power that will be purchased and distributed to the public over the next three years. The PPAs are being discussed with parties involved in importing and converting liquefied natural gas (LNG) to electricity in Myanmar. If successful, it will be the first time Myanmar is using LNG to produce electricity. But electricity generated in this manner will not come cheap. “It could add $1-$2.5 per million British Thermal Units (mmbtu) on top of the LNG import price,” Prasanth Kakaraparthi, an analyst at Wood Mackenzie, told The Myanmar Times in February. That implies that electricity costs could rise in the future. Currently, for residential use, K35 is collected per unit if the electricity used is between one and 100 units; K40 is collected per unit if it is between 101 and 200 units and K50 collected per unit for over 201 units. For businesses, K75 is collected per unit if the electricity used is between one and 500 units and K100 collected per unit for over 3,001 units, The Myanmar Times understands.
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  Myanmar and Swiss businesses discussed need for intellectual property (IP) and investment protection in Myanmar

  Members of the local and Swiss business community discussed issues pertaining to intellectual property (IP) and investment protection community at the Myanmar-Switzerland Business Dialogue held Tuesday in Yangon. Delegates represented businesses from the high-tech manufacturing, electricity and energy, insurance, healthcare and food production sectors. “There have been companies that have delayed their investments in areas like manufacturing because of the absence of a functioning IP law in the country,” said U Thaung Tin, vice chair of the Union of Myanmar Federation of Chambers of Commerce and Industry. Currently, an IP law has been drafted and submitted to Parliament. “Myanmar and its partners in the EU and Switzerland have discussed investment protection issues for a long time. We are at the stage of coming to several agreements although nothing has been signed yet,” he said.
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  Company registration fees for Small and Medium Enterprises (SMEs) will be halved from K 500,000 to K 250,000 from April 1 onwards (Directorate of Investment and Company Administration – DICA)

  Company registration fees for small and medium enterprises (SMEs) will be halved from K500,000 to K250,000 from April 1 onwards, according to a statement issued by the Directorate of Investment and Company Administration (DICA) Tuesday. The latest move comes after DICA, together with the Ministry of Planning and Finance halved company registrations fees for private companies to K500,000 on June 1, 2016. The company registration fees have been reduced again to facilitate business and make incorporation of new companies easier. “The main point is to encourage more SMEs to emerge. In addition, new company registrations can also be done online,” said U Than Aung Kyaw Deputy Director General of DICA. The move also comes after the Union Parliament approved the New Myanmar Companies Law on December 6, 2017, replacing the former 100-year-old Myanmar Companies Act with the aim of improving the ease of doing business, promoting private sector development and modernising the legal framework for companies in Myanmar.
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  Myanmar trade show aiming to connect local and international business will take place in Yangon during 28-30 March 2018

  Once an outlier in the region, Myanmar is now enjoying a period of exceptional growth. Myanmar has the fastest-growing economy in ASEAN, and is seen as a source of regional strength and a destination of opportunity. Further liberalization is planned, international investment is expected to remain strong and the domestic economy is becoming increasingly efficient. Optimism reigns as the experiment in reform has proven durable. While many emerging economies struggle to maintain a high rate of expansion in the face of global uncertainty, Myanmar is set to remain on course. Myanmar is one of the potential markets for foreign enterprises to invents, especially in textile and garments, beauty, sports, leisure and the food industry. However, investing in the Myanmar market is not always easy because there are many policy and legal issues as well as distribution challenges. Understanding these difficulties, VEAS Co., Ltd has organized a series of exhibitions including Myanmar Gar-Tex Expo 2018 - The 2nd International exhibition on Textile & Garment industry for Myanmar; Beauty Connect Myanmar 2018 - The 2nd Myanmar International Exhibition & Conference on Cosmetic, Beauty, Hair & Spa; Functional Food Myanmar 2018 - The 2nd International Trade Show for Functional Food Industry in Myanmar; Myanmar Sports & Leisure Expo 2018 - The 2nd Myanmar International Sports & Leisure Industry Expo.
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  Kanbawza Bank (KBZ) unveiled a new One-Stop SME banking centre to provide greater financial inclusion in Yangon

  YANGON, MYANMAR, 7 MARCH 2018 – KBZ Bank have unveiled a new One-Stop SME Banking Center (OSBC) offering a range of services to meet the needs of growing businesses, such as improving access to finance and financial literacy. KBZ Bank supports SMEs with comprehensive, holistic solutions and the KBZ One-Stop SME Banking Centre will be vital to improving the banking experience by facilitating the expansion of enterprises across industries, sectors and regions of Myanmar. It will operate as a world-class hub for information, staffed with banking experts who act as trusted advisors on all aspects of SME business needs. Located at Yangon City St John shopping mall, conveniently close to the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) building, KBZ SME Relationship Managers at the centre will listen actively to customers’ business concerns, expectations and challenges. Based on their industry, cash flow projection and expansion plan, KBZ Bank can offer structured solutions and advice, tailored to each individual business.
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  Infrastructure necessary for Thilawa Special Economic Zone (SEZ) including roads, bridges, electricity, water supply and jetty will be fully completed by 2021

  The infrastructure necessary for Thilawa Special Economic Zone (SEZ) will be fully completed within four years, according to Thilawa SEZ Management Committee (TSMC) and Japanese officials. These include roads, bridges, electricity, water supply and a jetty, which will be completed by 2021, the officials said during a press conference on the latest developments in Thilawa last week. For electricity supply, two 25 MW fuel and gas power plants were constructed in April 2017 in addition to 50 MW gas power plant in March 2016. Similarly, a 230 KV Thilawa power distribution plant was built in November 2017 and it will soon become operational and supply electricity in the SEZ, they said. “Required infrastructure for Thilawa is going to be 100pc completed. Over 90pc of land in Zone A of the SEZ and 50pc of land in Zone B has been sold. However, the number of factories that have started running is only over 40 due to lack of electricity,” TSMC chair U Set Aung said. Myanmar International Terminals Thilawa (MITT) and another new container jetty will also be constructed by December 2018, officials said.
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  Directorate of Investment and Company Administration (DICA) has approved two foreign investments in power distribution projects

  Directorate of Investment and Company Administration (DICA) has approved two foreign investment proposals in power distribution; it was announced in a meeting held in early March. The two proposals include a 10 Megawatt diesel power plant built on the area of 68.25 acres by Southern Myanmar Development Company that will distribute electricity to household in nearby villages in Yay Township, Mon State. Also a 19 Megawatt diesel power plant by i-Land Park Myanmar Limited that will distribute to the business on the area of 7,300 square meters in i-Land Industrial Zone in Bago Region. “The project in Yay Township will sell electricity to around 10 villages. The project in i-Land Park will sell electricity to the businesses in the industrial zone.” U Than Aung Kyaw, Deputy Director of DICA, said.
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  Central Bank of Myanmar (CBM) permitted a total of seven foreign banks to provide trade financing services in Myanmar to get better business and wider trade financing options

  Now that the Central Bank of Myanmar (CBM) has allowed a total of seven foreign banks to provide trade financing services in Myanmar, traders are anticipating much better business in the months ahead. Last December, the CBM permitted 13 foreign banks to apply for approval to offer trade financing services in the country. Since then, seven out of the 13 have submitted applications and received approval to do so. The remaining five banks are expected to receive the necessary approvals soon and all 13 banks will be able to provide trade financing within the year. “All foreign banks will be approved to offer trade financing. Right now, the remaining banks are not yet approved as they still need to complete the application process. After they’ve completed those processes, the remaining banks will be given approval,” said CBM Vice-Governor U Soe Thein.
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  Loans are required to build 28 factories to produce “high quality” rubber (Secretary of Myanmar Rubber Planters and Producers’ Association)

  Financial aid and loans are required to build 28 factories to produce “high-quality” rubber, according to the secretary of Myanmar Rubber Planters and Producers' Association. Khaing Myint said that rubber farms, especially smaller ones, lacked modern machinery and did not make much profit from selling just rubber sheets. “Only if Myanmar could produce international-quality rubber, we have the market for its produce,” said the secretary. The country produces around 200,000 tonnes of rubber annually. The rubber is mainly exported to China and also to Malaysia, Singapore, Indonesia, Korea, Japan, Taiwan and India.