ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar Investments International (MII) believes in the long term investment potential inherent in Myanmar

  U Aung Htun, MD of Myanmar Investments International, discusses how investors should view Asia’s last frontier. U Aung Htun, managing director of London-listed Myanmar Investments International (MIL), believes in the long term investment potential inherent in Myanmar. “This is a market where every type of infrastructure needs to be improved. Power and transport are important as well as financial, medical and educational infrastructure. Trade facilities, interbank lending and liquidity in the stock market are all required to make things work,” he said. Topping U Aung Htun’s list of sectors with good potential for return on investments (ROI) is financial services and banking. Specifically, MIL is now eyeing opportunities to invest in insurance and corporate banking. Investment banking and securities trading as well as credit provision and mobile payments will take off, he said.
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  Myanmar takes small steps towards providing greater liquidity for SMEs to increase business opportunities in Myanmar

  A rising number of start-ups as well as small and medium enterprises (SMEs) are emerging in Myanmar as business opportunities rise. However, many companies fail to achieve their full potential and contribute substantially to the economy because capital assistance is lacking in the country. In Myanmar, banks require collateral in the form of property before they are able to extend loans to start-ups and SMEs which do not have a proven financial track record. While these measures are prudent for the banks, many promising businesses are not able to obtain the financing they need to grow, which, in turn, holds back further economic development. “Under the current economy, secured loans are necessary for financial prudence. But when a businessman wants to invest in his business and needs capital, he faces difficulties if he does not own properties he can use as collateral. For further economic development, we need to also allow unsecured loans,” said Dr Aung Thura, CEO of Thura Swiss, which provides consultancy services to the Yangon Stock Exchange.
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  Thailand intends to retain border trade growth at 10-14 percent with Myanmar this year

  Thailand’s border trade is expected to grow 10-14 percent this year from an estimated 1.6 trillion baht in 2017, driven by growing demand for Thai goods, underlining the importance of partnerships on trade and investment as well as working to improve trade with minor cities in neighbouring countries. Adul Chotinisakorn, deputy director–general of the Foreign Trade Department, said Thailand’s Young Entrepreneur Network Development Programme (YEN-D) is instrumental to border trade growth. Launched in 2015 to encourage Thai entrepreneurs to invest abroad and gain knowledge of the regional market as well as the trade and investment regulations of Thailand’s neighbours, the YEN-D programme features familiarisation trips and special training courses for young businesspeople in Cambodia, Laos, Myanmar, Vietnam and Thailand to help them better understand each other’s cultures and regulations. To be selected, Thai entrepreneurs have to be under 45 and come from business families. Governments in other participating countries have similar criteria.
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  Myanmar will invest US$ 400 million on its first elevated expressway in Yangon, according to the signed advisory services agreement between the Ministry of Construction and International Finance Corporation (IFC)

  The Ministry of Construction and International Finance Corporation (IFC) on January 11 signed an advisory services agreement to build an elevated expressway connecting Yangon port, Thilawa SEZ, Yangon International Airport, Yangon Industrial Zone and Yangon-Mandalay expressway. The 20.5-kilometre elevated expressway will cost US$400 million (535.86 billion kyat), with maintenance costs to be paid for by collecting taxes. According to the agreement, the IFC will be entitled be the leading advisory corporation for the project. The IFC said it would implement a tender selection process to choose an experienced and high-profile construction company with good management, diversified operations and high-quality maintenance capability. IFC said the project will help to develop the economy. “The big investment in basic infrastructure, especially in the transportation sector, is very important to develop the economy in the long term. That’s because it can promote a link between the economy and services in the social sector,” said Kyi Zaw Myint, deputy director general (planning) at the ministry.
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  Multi-billion dollar coal-fired power plant project in Hpa-an is suspended due to protests, despite assurances of reliability from experts

  Objections against a multi-billion dollar coal-fired power plant project in Hpa-An township, Kayin State, are mounting despite assurances of reliability from experts. The $3 billion plant is to be constructed by Toyo Thai Power Myanmar Co Ltd in Thone Eain village of Wutt Kyi Ward, Hpa-An township. The plant was originally slated for construction in Ye township, Mon State, but the project was cancelled amid protests from the local community. The 1,280-megawatt power plant will operate for 30 years with an option to extend for another 10 years, subject to approval. The plant, which is a joint venture between Thailand-based TTCL Public Co. Ltd and the Kayin State government, is awaiting parliamentary approval. Under the agreement, the company would have a 95 percent stake in the project while the state government would hold the remaining 5pc stake. “We are waiting for central government approval at the moment. After that we will start the Environmental and Social Impact assessment and feasibility study within four years from 2018,” said U Htet Aung Mon, project manager in charge of TTCL.
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  Government expects Myanmar's growth rate to reach 6.8 percent this fiscal year 2017 – 2018 despite the slowdown in economic growth

  Despite the slowdown in economic growth, the growth rate for Myanmar is expected to reach 6.8 percent for the fiscal year 2017-18, U Htin Kyaw, the country’s president, said during the national planning commission’s meeting on Tuesday, according to the president’s office. This is because the weather in the time of harvest was favourable as well as other factors such as the inflow of foreign investment, increasing productivity of SMEs, improved transport infrastructure, tourism growth and other services, the president said. Small and medium-sized enterprises (SMEs) are expected to further develop and SMEs will have access to loans and the private sector will continue to growth, he added. SMEs will be driving most of the economic growth of the country.
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  Telecommunication sector attracted the most investment last year and will continue attracting investment this year

  Myanmar saw the largest investment in its communications sector last year and this year will also see encouraging investment in telecommunications and communication services, said Aung Naing Oo, secretary of Myanmar Investment Commission (MIC). “The telecommunications sector is improving continuously. It is value added, of course. More telecommunications services will come this year.” He however pointed out some unexpected disadvantages during the year. “Things do not come as we expected. The incidents in Maungdaw, Rakhine State harmed the image our country. We had almost finished negotiations with the European Union to sign an investment protection agreement. “But the EU suspended the signing. What we expected first is that this agreement would be signed in 2017, then we would try to promote the investment in our country in 2018 and 2019. We took three years to do that,” Aung Naing Oo commented.
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  To reach Myanmar's unbanked population, Arianespace will launch its first satellite next year to expand bank's national coverage

  Richard Bowles, regional managing director for ASEAN at Arianespace, which launches satellites, is convinced banks’ struggle to reach Myanmar’s unbanked population will end with the launch of its first satellite, slated for some time next year. “Satellites are an important part of a country’s economic development. Looking at Myanmar’s satellite leasing capacity, it’s a good idea to have one indigenous satellite operator to give the banks the nationwide coverage they need to reach the greater population,” he said. Myanmar’s banks have in recent years established a web of Automated Teller Machines (ATMs) to make banking easier for customers within major cities like Yangon and Mandalay, but also to capture a larger pool of people who have yet to open bank accounts. In the outskirts of the city and beyond though, network coverage falls away and huge swathes of the population are still unable to rely on ATMs to conduct their banking affairs.
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  Myanmar Investment Commission seeks to scale up domestic and international investments in logistics and manufacturing sectors

  The Myanmar Investment Commission (MIC) is seeking to scale up domestic and international investments in the logistics and manufacturing sectors, according to law firm DFDL. The commission invited investors to develop logistics services located in major urban areas as well as trading hubs on December 26 last year. The specific types of investment areas open for participation include dry port services, bonded warehouse services, highway bus and freight terminals, as well as warehouses and wholesale centres. Mandalay’s first dry port - developed by Kerry Logistics - started running in July last year, according to the Mandalay Region Chamber of Commerce and Industry (MRCCI). A dry port is an inland intermodal terminal directly connected by road or rail.
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  World Bank estimates Myanmar’s economic growth rate to achieve 7 percent target of GDP this fiscal year

  2017-2018 Fiscal Year has passed the first six months. Ratio of deficit and GDP was 4.37 per cent in Budget Estimate and 4.38 per cent in Revised Budget Estimate. In scrutinizing demands for additional grants, it was found that the excess of deficit was attributed to allowance of demands for additional grants of hydro power plants under construction, which are to be granted only after scrutinizing at different levels. It includes essential matters for fencing Rakhine State Border Lines and for building roads for May Yu range linking routes, approved by the Union Government.” said President U Htin Kyaw at the meeting 3/2017 of the Financial Commission held in Nay Pyi Taw on 2nd October, 2017.