ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Tanintharyi region government’s 2017-18 budget prioritizes electricity, roads, bridges, and low-cost housing

  Tanintharyi's regional government is spending heavily on infrastructure and its 2017-18 budget focuses on electricity, roads and bridges as well as low-cost housing, Chief Minister Daw Le Le Maw told The Myanmar Times on January 22. Out of the approved budget of K157.45 billion for 2017-18 fiscal year, K119.86 billion has been allocated for electricity, roads and bridges, as well as low-cost housing projects, according to the inaugural Citizen’s Budget released by the regional government. The Union government first introduced the Citizen’s Budget in the 2015-16 fiscal year. But for Tanintharyi Region, this is the first of its kind. The launch ceremony was held at Diamond Crown hotel in Dawei on January 22, where the government disseminated hundreds of physical copies in hopes of helping citizens better understand the budget process and how the administration receives and spends its resources. This inaugural budget was supported San Francisco-headquartered non-profit organisation The Asia Foundation (TAF). The TAF’s work on strengthening sub-national governance in Myanmar is funded by the UK government’s Department for International Development(DFID), Australia’s Department of Foreign Affairs and Trade (DFAT), and the Swiss Agency for Development and Cooperation (SDC).
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  Internal Revenue Department announced the ten largest foreign taxpayers list from the previous fiscal year 2016-17

  Internal Revenue Department has announced the list of foreign companies that paid most in tax for 2016-2017 fiscal year with Moattama Gas Transportation paying over K140 billion in income tax and Myanmar Brewery paying over K100 billion in commercial tax. The 10 largest taxpayers in income tax for that fiscal year are Moattama Gas Transportation that paid over K140 billion, Taninthayi Pipeline Company LLC less than K80 billion, PTTEP less than K40 billion, Myanmar Brewery and Telenor Myanmar less than K30 billion, Total E & P Myanmar and Unocal Myanmar less than K20 billion and Myanmar CP Livestock, Nippon Oil Exploration and Micasa Hotel less than K9 billion. The 10 largest taxpayers in commercial tax for the same year are Myanmar Brewery that paid over K100 billion, Myanmar Distillery over K50 billion, Virginia Tobacco and Shwe Li (1) Hydropower less than K50 billion, Lluvia Ltd and Coco Cola Pinya Beverages less than K10 billion, Huawei Technologies, Heineken Myanmar and British American Tobacco less than K5 billion and Myanmar Japan Thilawa Development Ltd less than K4 billion.
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  In order to promote Myanmar’s export, HUBS MK Co., Ltd invested US$ 98 million to build an international standard logistics hub in Yangon

  South Korea has invested $98 million to construct a logistics hub at Shwe Lin Ban Industrial Zone in Hlaing Thar Yar township, Yangon region. The move is touted to be vital to promoting Myanmar’s exports. HUBS MK Co Ltd from South Korea and Myanmar Trade Promotion Organisation under the Ministry of Commerce signed a memorandum of agreement (MOA) for the project in Nay Pyi Taw on Wednesday. As Myanmar continues to avail portions of its economy to international trade, an international-standard logistics hub will be necessary to ensure a certain level of export quality and reduce production and transportation costs, said U Aung Soe, director-general of Myanmar Trade Promotion Organisation. “The quality of Myanmar’s agricultural, livestock and fishery products earmarked for export can be controlled and sustained if we build a modern trade support system which facilitates logistics and transport of the goods from rural farms to a central hub for shipping overseas. Other export products should be promoted too. That’s the reason why this project was initiated,” said U Aung Soe.
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  Despite local criticism, Tanintharyi government plans to develop a new quality fish auction market in Myeik

  The government is planning to develop a quality fish-auction market as Japan helps draw up a masterplan for the development of Myeik town in Taninthayi Region, said Region Chief Minister Dr Le Le Maw. The chief minister revealed the plan in a recent meeting with local people and departmental organisations in Myeik after local residents criticised the government for attempting to launch a new fish-auction market. Locals suggested the government instead provide assistance to the existing international fish-auction market. Myanmar Investment Commission has approved an investment of US$70 million toward the international fish auction market but there have been delays in the transfer of money. “I am sorry,” the chief minister told local residents and department staff. “We called a meeting to discuss creating a legitimate fish-auction market. What we are doing now tends not to be in conformity with the law. Whatever we do, we must act within the framework of the law. You all know about the 2008 constitution. We cannot do anything if we do not act in line with the constitution,” said the chief minister.
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  Myanmar Investment Commission (MIC) plans to reduce the registration fee for SMEs

  The Myanmar Investment Commission (MIC) is planning to reduce the registration fee for small-and medium-sized enterprises (SMEs), it announced at a press conference. Aung Than Kyaw, deputy director-general of the Directorate of Investment and Company Administration, said: “The MIC plans to reduce fee significantly. It is too early to reveal the exact amount. The move is to enable starting businesses to reduce their costs as much as they can.”
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  Mandalay Region Investment Committee approved over K 1.4 billion in investment after MIC established Region and State Investment Committees in accordance with the Investment Law

  The Mandalay Region Investment Committee has approved over K1.4 billion in investments since the Myanmar Investment Law was approved in October 2016, U Thike Htoon, assistant director at the Directorate of Investment and Company Administration (DICA), said on Monday. The investments were approved for the first time after the Myanmar Investment Commission (MIC) established Region and State Investment Committees in accordance with the Investment Law. It is the second largest amount invested in a region after Yangon, the country’s business hub. “Mandalay enjoys the second highest volume of investments after Yangon. The amount of investment from locals and foreigners has totaled more than K1.4 billion. We have approved over $8 million in foreign investments in Mandalay for the first time,” U Thike Htoon said. The approved investments include two industry projects and one in agriculture, which will be run by local companies, and two foreign investments in the industrial sector, adding up to five new and approved projects in total.
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  A majority of participants at Myanmar’s second digital rights forum were of the view that the freedom of expression in the country had worsened in 2017

  A majority of stakeholders who attended Myanmar’s second digital rights forum believed that the freedom of expression in the country has worsened in 2017 while online privacy has also deteriorated. Over 150 participants took part in the second digital rights forum in Yangon on January 18 hosted and jointly organised by Phandeeyar together with MIDO, Engage-Media, Free Expression Myanmar and the Myanmar Centre for Responsible Business (MCRB), with support from the Swedish government. Over half of the participants came from civil society organisations working on a variety of issues including peace, gender, freedom of expression, consumer rights, with the remainder evenly split between the private sector, government and parliament, the media and academia. More than three quarters of participants were attending for the first time. The inaugural digital rights forum was held in December 2016.
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  More than US$ 280 million had been invested at Thilawa Special Economic Zone (SEZ) this fiscal year 2017-2018

  More than US$280 million has been invested in the 2017-2018 fiscal year at the Thilawa Special Economic Zone (SEZ), including promotion of existing investment, according to the Directorate of Investment and Company Administration (DICA). “There are nine new investments until January 19 in Thilawa SEZ, and investment is US$280.29 million,” said an official from DICA who did not want to be named. The foreign investments include three from Japan, two from Singapore and Thailand, and one from South Korea and the Netherlands. The first phase of a 101-hectare project in Zone B of Thilawa SEZ was opened in February 24, 2017.
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  Collier International Myanmar predicts that the industrial sector will be a star performer in the Yangon property market in 2018

  The industrial sector as a star performer, rising bank confidence in providing mortgage loans and further falls in residential rentals are among Colliers International Myanmar’s top 10 predictions for the Yangon property market in 2018. Other predictions in a report released this month are office rents remaining competitive amid a decline in new supply and developers focusing more on basic condominiums and apartments, as well as smaller serviced flats and flats for lease. It quotes Colliers International Myanmar founder and director Mr Tony Picon as saying “speedy reforms and further economic liberalization will be fundamental, eventually driving the real estate sector to new heights”. The prediction of the industrial sector as a star performer is based on growth in the garment, fast moving consumer goods and logistics industries. However, the report cautions that infrastructure may remain inadequate in the near to medium term. It said Colliers continually urges industrial developers to focus on improving land development “as well as provisions for generators for redundancy purposes”.
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  Government reaffirms commitment to reform the labour market at a forum with stakeholders to discuss progress and challenges

  Representatives of the Myanmar government, employers, workers, civil society and international partners on Wednesday gathered for the third time since 2015 in a forum to discuss the progress and challenges faced in an ongoing effort to implement labour market reforms. Taking place in Nay Pyi Taw, the forum was held as part of the ‘Initiative to Promote Fundamental Labour Rights and Practices’ in Myanmar. Partners of the initiative include Denmark, the European Union, Japan, the US and the International Labour Organisation (ILO). U Thein Swe, Minister of Labour, Immigration and Population reaffirmed the government’s commitment to reforming Myanmar’s labour laws and strengthening social dialogue with employers’ and workers’ organisations. Meanwhile, EU Ambassador to Myanmar Kristian Schmidt stressed that economic growth must go hand in hand with social justice, respect for human rights, and the protection of the environment in order to be sustainable.