ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  In order to stimulate SME development in 2018, the 13th meeting for SME development was held in Yangon

  At the 13th meeting between Vice President U Myint Swe and Myanmar businesses held yesterday, the Union Minister for Industry U Khin Maung Cho said SME development works are to start early next year. For now, SME development central committees and three work committees, for SME agencies, fund management and work reviews/reports, led by Union Ministers, were formed and an official announcement will be made soon, it is learnt. In order to recognise the development of SMEs, competition by work sectors will be held in states and regions, said the Union Minister. “For SMEs to know all their works, a competition will be held on recognising entry into the market. Their products will be displayed for all to know”, the Union Minister said. The competitions are scheduled to be held in the second week of January, for which Japan will provide technical support and help judge the products. The products that are up to standards in the regional competitions will compete in the final competition that will be held in Nay Pyi Taw, added the Union Minister. Vice President U Myint Swe said the government is using various methods for SME sector development and urges the private businesses to work together for this. “SMEs are the main driving force in the country’s economy. If SMEs are implemented, economy will develop. We are expecting much for SME sector development” said the Vice President.
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  After the government released the Condominium Law, real estate agents foresee good prospects for the Myanmar property market in 2018

  Real estate agents believe prospects are looking good for the Myanmar property market in 2018. “Prospects in the real estate market will be brighter this year after the government released the rules to the Condominium Law at the end of last year,” said U Thet Naing Oo, managing director of real estate legal services firm Maverick Management Company. “We have also seen a rise in the number of housing loans in Myanmar last year,” he added. The new Condominium Law had been enacted on February 2016. However, rules to the legislation were only released in December last year. Under the new rules, foreigners will now be permitted to develop property, subject to approval from the Myanmar Investment Commission. The minimum requirements for a condominium project are to build at least 6 floors on 0.5 acres of land area.
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  Myanmar Petroleum Trade Association (MPTA) will submit a proposal to the Ministry of Electricity and Energy, requesting the Ministry to scale down sulphur contents from 500 ppm (part per million) to 10 ppm in diesel fuel

  The Myanmar Petroleum Trade Association (MPTA) will submit a proposal to the Ministry of Electricity and Energy asking it to reduce the sulphur content from 500 ppm (parts per million) to 10 ppm in diesel fuel, said Dr Win Myint, secretary of MPTA. “Once we get the approval from our association members in the upcoming meeting, we will submit the request within a month,” he added. Many countries keep the content of sulphur in ultra low diesel or premium diesel to minimise the fuel’s environmental impact. “The consumption of high sulphur diesel results in high level of pollutants. The number of vehicles on the country’s roads is increasing, prompting us to call for this proposal to prevent severe levels of air pollution,” said Dr. Win Myint. Previously, the country consumed diesel having 5,000 ppm of sulphur, and later reduced the level to 500 ppm. Premium diesel with 10 ppm is also imported and distributed in the domestic market. The percentage of those consuming this premium diesel has increased from 10 to 30 per cent.
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  Trading volumes of Yangon Stock Exchange listed companies doubled last week

  The Myanmar Stock Price Index closed last Friday at 462.41, down by more than 2 percent since trading resumed in the New Year. Nevertheless, trading volumes doubled during the week, with almost 22,000 shares exchanging hands on Friday compared to just over 11,000 at the start of the week. A total of 43,524 shares were traded over the three-day week. Myanmar Thilawa SEZ Holdings (MTSH) accounted for the bulk of the trading last week, after the company released its results for the six months to September 30, 2017 on December 29, the last working day of 2017. MTSH announced revenues amounting to K8.1 billion, which is up 36 percent compared to the same period in the previous year, owing mainly to an increase in property and infrastructure development activities in Zone A of the Thilawa industrial zone by subsidiary Thilawa Property Development (TPD). During the period, TPD completed the construction of three workers’ quarters, which it is now leasing out to companies at Thilawa. It also completed two four-storey shop house blocks, some of which have been sold.
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  Ongoing humanitarian crisis in northern Rakhine State expected to reduce Foreign Direct Investment (FDI) from the west to Myanmar in 2018 (U Aung Naing Oo, General Director of DICA)

  Foreign direct investments (FDI) to Myanmar from the West are expected to be less than previous years’ as a result of the ongoing humanitarian crisis in northern Rakhine, said U Aung Naing Oo, secretary of the Myanmar Investment Commission (MIC) and general director of the Directorate of Investment and Company Administration (DICA). U Aung Naing Oo was speaking about the investment outlook in Myanmar for 2018 at the office of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) on Sunday. He added that the final stage of negotiations over an Investment Protection Agreement (IPA) between Myanmar and the EU have been suspended as a result of the conflict. The IPA, which had taken three years to negotiate, would have offered investors from both sides a predictable and secure investment environment, ensured they are treated in a fair and equitable way and that investments would not be unfairly taken away without fair compensation.
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  Myanmar Investment Outlook seminar, which was held last Sunday, discussed difficulties and the impacts of the new Companies Law

  Myanmar Investment outlook seminar was held in Yangon on Sunday. More foreign investments are likely to come due to new Myanmar Companies law but entrepreneurs have still difficulties in access to finance, a speaker pointed out at the event. New Myanmar Companies law was approved on the 6th of December 2017 and will come into effect on the 1st of August this year. The new Myanmar Companies law allows foreign investors to take up 35% stake in local companies. More foreign investors will come into, one of the speakers, Myanmar Citizen Bank CEO said. CEO, Myanmar Citizen Bank, Dr. Thaung Han said “Foreign investors have now had incentive to come into our country as the new law allows them to take up 35% stake in local companies. The local businessmen are mentally ready for that but they are not ready for ongoing process.”
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  UMFCCI members urged government for lower tax rates in order to alleviate the tax burden on business

  BUSINESSES at the Union of Myanmar Federation of Chambers of Commerce and Industry have urged Nay Pyi Taw to lower the tax rate, while the Internal Revenue Department said the tax rate has been lowered on an annual basis. Businesses collectively asked the tax rate to be reduced during the Chief Financial Officer conference (CFO conference), which was organised at the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) office on December 21. The conference was an avenue in which businessmen from different sectors discussed the draft tax law for 2018. The executives and investors argued that the existing tax burden poses a considerable burden on businesses. The system on which the rebate for taxpayers is calculated causes difficulties, for one.
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  To control illegal trading of Myanmar timber, auctions for timber is temporarily suspended

  Auctions for timber rejected by the Myanma Timber Enterprise (MTE), which are conducted by the Forest Department under the Ministry of Natural Resources and Environmental Conservation, have been suspended since December 29, ministry officials confirmed. The auctions, which are typically held across the regions and states, have been temporarily suspended in an attempt to control illegal trading of Myanmar timber. The suspension period is expected to be up to a month to enable the department to reorganize the auction committee and amend outdated auction regulations so that they are more relevant to present circumstances, said U Kyaw Zaw, an office director at the ministry. Timber obtained through auctions by the Forest Department is not allowed to be transferred to other regions and states and not permitted to be exported to other countries.
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  Thai-Myanmar border trade on the Mae Sot-Myawaddy border dropped by more than 10% last year due to falling prices in the agricultural sector and a weakening Kyat

  Trade value across the border with Myanmar border in Mae Sot district dropped more than 10% last year on falling prices in the agricultural sector and a drop in the value of the kyat. Suchart Triratwattana, the chief adviser of the Tak Chamber of Commerce, said on Wednesday border trade between the district and Myanmar’s Myawaddy township dropped from 90 billion baht in 2016 to 70 billion baht in 2017. “Prices for crops in Myanmar fell sharply in the past year, and their economy relies on agriculture. Coupled with a currency that is losing purchasing power, the Myanmar people’s spending power has certainly weakened,” said Mr Suchart, who exports farm machinery.
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  To increase foreign investment, the government has allowed investment committees from states and regions to attract investments worth US$ 5 million or 6 billion Kyat

  International investors are showing interest in Myanmar, led by investors from other Asean countries, along with Japan and China said the nation’s commerce minister. To prepare for additional international investment, the Myanmar government has changed the rules to allow investment committees from states and regions to attract investments worth US$5 million or 6 billion kyat. As well, the government has opened branch offices of the Myanmar Investment Commission (MIC) in states and regions. “We have given more authority to states and regions in line with law,” said Dr Than Myint, the Minister for Commerce.