ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  In order to meet rising demand from households and businesses, government looks to Liquefied Natural Gas (LNG) imports to produce more electricity by 2020

  For the first time, Myanmar will import liquefied natural gas (LNG) as it races to meet an expected shortage of electricity. By 2020, the country will require double its current electricity supply to meet rising demand from households and businesses. The Ministry of Electricity and Energy (MOEE) on January 30 issued a Notice to Proceed to four power projects, three of which will receive imported LNG for re-gasification. The projects will be carried out in Kan Pauk in Tanintharyi Region, Mee Laung Gaing in Ayeyarwady Region, and Ahlone in Yangon Region. “The LNG will be delivered by LNG carriers for re-gasification and power generation at the plants. The plants have been allowed to commence doing so,” said U Soe Myint, deputy permanent secretary of the MOEE. The fourth project, which involves natural gas, will be carried out in Kyaukphyu, Rakhine State. The projects are expected to help generate around 3,000 megawatts (MW) of power, double the country’s current supply, to meet the MOEE’s 6,000MW electricity target by 2020-21.
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  Genomic rice breeding practices in Myanmar will be initiated with support from the Japan International Cooperation Agency (JICA)

  Japan International Cooperation Agency (JICA) and Myanmar’s agricultural research department are set to implement a genomic rice breeding initiative. U Naing Kyi Win, director general of the Department of Agricultural Research (DAR) under the Ministry of Agriculture, Livestock and Irrigation (MOALI), and JICA signed a Record of Discussions (R/D) in Nay Pyi Taw on January 30 to launch a five-year project to strengthen rice breeding based on genomic technology. The representative from JICA was Kenichi Shishido, director general of the DAR. This JICA-funded project will introduce paddy genetic breeding to the country in order to develop high-yield and pest and disease-tolerant rice varieties. In the five-year span, research institutions in both countries will carry out joint activities to create promising rice lines suitable to rain-fed lowlands and uplands, as well as to enhance Myanmar’s existing breeding method. On the Japanese side, the agriculture faculty at Kyushu University and the bioscience and biotechnology centre at Nagoya University are involved.
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  Index Creative Village Plc shifts its focus to digital marketing and communications to promote business expansion in Myanmar

  CHANGES In the behaviour of people in Myanmar have driven Index Creative Village Plc to shift its focus from offline to online in a bid to expand its business in the neighbouring country. Kreingkrai Kanjanapokin, founder and group CEO of Index, said in an exclusive interview that the firm would focus on its new lines of business - digital marketing and communications, in Myanmar this year. “Now everything is online, and you can get connected all the time. You cannot survive if you cannot create new things,” he said. “Events will never die. But people who create events have to learn more to use digital media. That is why we push for the hybrid. We have to combine digital and events together and create a linkage between online and offline.” He said it was a good opportunity to bring our experience and know-how to use in the market, and to serve the businesses that wanted to effectively use social media in Myanmar.
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  Vice President U Myint Swe attended the 14th Private Sector Development Committee meeting and discussed efforts to raise Myanmar's ranking in Ease of Doing Business

  Private Sector Development Committee held the 14th meeting with entrepreneurs at UMFCCI in Yangon on Thursday. Chairman of the Private Sector Development Committee Vice President U Myint Swe pointed out that the committee implemented 209 points reported by entrepreneurs, endeavoring to raise the ranking of the Ease of doing business indicators. He stresses the importance of resolve to overcome the difficulties and obstacles for the private sector development. Vice President, The Republic of the Union of Myanmar, H.E. Myint Swe said “The government has been working on the private sector development since 2016, organizing 5 working committees. Small and Medium enterprises make up 99 per cent of the country’s economic force. They are important in the development of the nation. All of us have to cooperate to develop the private sector.
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  Karen National Union (KNU) demands negotiations with the Union government over plans to resume highway linking Thai border and Dawei Special Economic Zone

  The Karen National Union has demanded negotiations with the Union government over plans to resume building a two-lane highway between the Thai border and the Dawei Special Economic Zone in Tanintharyi Region. The KNU said in a statement on February 1 that the Nationwide Ceasefire Agreement it signed in October 2015 stipulated that the government “must negotiate” with signatories over the implementation of socio-economic development projects. The KNU, one of eight armed groups that signed the NCA in 2015, said that if work resumed on the highway, it would cut through pristine forests and rural communities under its control. It said the government announced plans to resume work on the highway after reaching agreements with the Thai and Japanese governments on December 2 last year. The KNU acknowledged that the project was an opportunity to demonstrate that socio-economic development projects in ethnic areas could provide significant benefits to local communities while protecting their security, culture and the natural environment.
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  Government urgently needs to promote infrastructure development to attract investors (Myanmar Infrastructure Forum)

  SINCE MYANMAR’S lack of adequate infrastructure may deter potential investors, the government must urgently bring infrastructure development into focus, according to the recent Myanmar Infrastructure Forum. The government’s clear decisions would drive the future of Myanmar, said Teo Eng Cheong, CEO International of Singapore, North Asia and Southeast Asia at Surbana Jurong Private Limited (SJ), which organised the event. “The government needs to decide what kind of infrastructure is in need in the short term. Is it ports, roads and highways, railways or power generation? It is the big question the government needs to look at and carefully assess in the next two years,” he said. Cheong urged the government to choose the right projects and to work with the right partners. “It is important to allow the right companies to get involved in infrastructure projects. Approaches in financing, developing and operating the projects are critical to ensure benefits for all the citizens,” he said.
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  To support livestock farmers with working capital, Yoma Bank signed its first innovative loan agreement with De Heus

  Yoma Bank signed its first innovative loan agreement that is set to revolutionize SME financing in the poultry sector. The purpose of the loan is to facilitate livestock farmers with working capital to buy animal feed from De Heus, a Dutch Feed Miller with factories in Yangon and Mandalay. The finance structure is a win-win situation for all parties involved. Individual farmers and dealers get access to the formal financial system in order to grow their poultry business, whereas De Heus is positioned to grow feed sales on the back of their client’s increased purchasing power. Borrowers are not required to put up hard collateral typically requested by banks in Myanmar, but rather earn unsecured bank credit based on their positive track record. "Yoma Bank is proud to support Myanmar’s poultry farmers through this innovative partnership with De Heus. This program will make a great impact on the ability of livestock farmers to grow their businesses. Yoma Bank’s Agribusiness Finance Program, together with LIFT, continues to deliver new and innovative financing solutions to support Myanmar’s agriculture sector.” said the Advisor to the Chairman and CEO of Yoma Bank, Mr. Hal Bosher.
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  Directorate of Investment and Company Administration (DICA) expects US$3 billion FDI in 2018 transitional fiscal year

  Directorate of Investment and Company Administration (DICA) forecasted that $3 billion in foreign direct investments will flow into Myanmar in first six months of this fiscal year, from April 1 to September 30. DICA is referring to the 2018 transitional fiscal year which is only six months long. To clarify, 2018 will see the start date for the normal fiscal year period change from April 1 to October 1. The current 2018 fiscal year started on April 1, 2017 and will end on March 31, 2018, and we normally call this 12 month period the FY 2018. However, there will be a six month transitional fiscal year period, which will start on April 1, 2018 and end on September 30, 2018. So in order to avoid confusion between the two fiscal year periods which both end in 2018, we will refer to this six month period as the 2018 transitional fiscal year.
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  Myanmar has signed investment promotion and protection deals with twelve countries since 2014, including Thailand

  From 1998 to 2014 Myanmar has signed investment promotion and protection deals with twelve countries, since then there have not been any other signed deals, according to the press conference of Directorate of Investment and Company Administration (DICA) held on January 19. “Myanmar is planning to sign deals with Hong Kong, Singapore, USA, and European Union countries,” according to U Kyaw Win Tun from DICA. ‘‘We have signed Trade and Investment Framework Agreements with USA. We have more steps to reach a bilateral agreement and we are negotiating by forming working groups on the subject,’’ he said. The countries that have signed a deal with Myanmar are Philippines, Vietnam, China, Laos, Thailand, India, Kuwait, Indonesia, Japan, Korea and Israel and the agreement with USA is the one on attracting investment.
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  Government approved export of 22 types of value added products for foreign joint venture businesses

  The government has approved export for 22 types of value added products by joint venture businesses, according to the notice by the Ministry of Commerce on January 22. With the aim of boosting productivity and expending foreign market, the ministry has allowed the export of 22 items. ‘‘The is the first step for joint venture businesses for exporting their products which will pave the way for more foreign investment,’’ U Khin Maung Lwin, Deputy Director of the Ministry of Commerce, said. Before the notice, foreign venture businesses were not allowed to be involved in exporting, they were only allowed to import hospital equipment, construction materials, fertilizers and other related items. The allowed items, according to the notice, are meat, crops, plastics and pulp, ceramic materials, ceramic materials, pots, cups, plates and other household materials; chemicals, compressed gases, agricultural products, cosmetics, animal food, wood based furniture and purified metals.