ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  The Ministry of Industry plans to proportionally allocate SME loans to regions and states next year

  Ministry of Industry is planning to proportionally allocate loans for Small and Medium Enterprises (SMEs) to the regions and states next year. SMEs loans are reported not to reach every SME across the country. Enterprises in major cities such as Yangon and Mandalay have more advantages to get loans, for they know and follow the rules better and handle the financial statistic better, and more systematically while the enterprises in rural towns, on the other hand, lack knowledge on how to follow the rules and procedures to get loans. ‘‘People in remote places such as Chin and Kachin can’t get loans if they go straight to the bank, so we will allocate loans proportionally. So they will get equal access to the loans and more opportunities,’’ Daw Aye Aye Win, Director General of the Ministry of Industry.
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  UMFCCI plans to cultivate ginger in Rakhine State as a pilot project in March 2018 to strengthen export

  Union of Myanmar Chambers of Commerce and Industry (UMFCCI) is planning to start growing ginger in Kyauktaw, Ponna Kyun, Buthidaung and Maungdaw townships in Rakhine State as a pilot project in March 2018 in cooperation with Rakhine State Federation of Chambers of Commerce and Industry, Rakhine State government, local residents and private partners. UMFCCI visited Rakhine State on December 14th and met local people to talk about what they needed. Rakhine State Federation of Chambers of Commerce and Industry will support with 1,000 visses which are relevant to 1,630 kilograms and Myanmar Fruit, Flower and Vegetable Producers and Exporters Association will provide technical assistance. Rakhine State Federation of Cooperative Association and Public Company will implement a pilot project in four townships.
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  Investors are still interested to invest in companies listed on the YSX, despite Myanmar stock price index falling 23 points or around 4.7 percent in mid-December 2017

  The Myanmar Stock Price Index tumbled 23 points, or around 4.7 percent last week, closing Friday at 463.70, after officials from the Directorate of Investment and Company Administration (DICA) said the new Myanmar Companies Law would take at least another 8 months to implement. The new law, which replaces the existing 1914 Myanmar Companies Act, brings the country’s corporate legislation on par with its more developed neighbours. One of the major issues of implementing the new law though, is a clause in the legislation allowing foreigners to take up to a 35pc share in local companies, including companies listed on the Yangon Stock Exchange (YSX). If implemented, the move would pave the way for greater liquidity on the exchange and encourage many more companies to list.
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  Investment potential still remains despite lower than expected economic growth in Myanmar due to Rakhine risks

  Economic growth in Myanmar slowed in the 2016-17 fiscal year despite notable reforms and a healthy level of foreign investment commitments, according to the World Bank’s Myanmar Economic Monitor. Over the medium-term, growth may well continue to fall short of expectations as the Rakhine humanitarian crisis continues to unfold. The World Bank has lowered its growth projections for 2016-17 to 5.9 percent, below expectations and slower than growth of 7pc in 2015-16. Investment demand decelerated during the year as private investors held back their plans pending greater clarity in the government’s economic agenda. Due to fiscal constraints, public investments also declined, dropping to just 5pc of GDP during the year compared to 6.2pc in 2015-16.
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  Karen National Union (KNU)-backed economic project in Tanintharyi Region is stalled pending public opinion

  A major economic project backed by the Karen National Union (KNU) will be stalled pending comments from the public. The Mae Tha Mee Khee Industrial Estate Project will be set up on 7,760 acres of land located five hours from Dawei, the capital of Tanintharyi Region, which is under KNU control. Parliament members are scheduled to make a trip to the project site to gather views from the local communities affected. They will file a report at the regional government’s office afterwards. “We need to get community views on the project and investigate if the project will really benefit all the stakeholders,” said U Khin Mg Aye, President of the Tanintharyi Region parliament.
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  According to the Directorate of Investment and Company Administration (DICA), all companies must register online within six months of 1st August 2018 when the Myanmar Companies Act bylaw comes into effect

  All companies in Myanmar must re-register online within six months of Au¬gust 1, 2018, when My¬anmar Companies Act bylaw comes into effect, according to the Directo¬rate of Investments and Company Administration (DICA). It is, according to U Aung Naing Oo, Director General of DICA, part of the e-government plan the government trying to implement. ‘‘All the registered com¬panies must re-register. It won’t be very difficult, it’s just simply complet¬ing the online forms,’’ he added. The new Myanmar Com¬panies Act emerged when Amyotha Hluttaw, the upper house, approved it on November 22nd. The bylaw includes changes to online registration, erases tax exemption for small and medium companies, and allows foreigners to invest up to 35 percent in citizen-owned companies.
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  Japan’s Garbage Collection Co., Ltd expressed its interest in constructing a waste to diesel fuel factory in Bago Region

  Japan’s Garbage Collection Co Ltd has expressed interest in constructing a waste-to-diesel factory in Bago Region, according to the Bago Regional Government. The diesel produced will be used as fuel for tractors and harvesters in the agriculture sector. Bago Region, which is next to Yangon Region, is heavily reliant on the agri-business. The region mainly cultivates paddy and beans. The company met with Bago Region Chief Minister U Win Thein this week to discuss the construction of the waste recycling plant.
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  By working closely with the government and the legislature, UMFCCI helps to reflect the private sector’s perspectives on tax laws

  MORE THAN 150 executives from different companies recently gathered at the Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI) office to provide inputs on the Union Tax Law, which would soon be enacted. The event, entitled “CFO Conference”, led to fruitful discussions and a paper based on the participants’ suggestions would be submitted to authorities concerned, according to Ye Min Aung, vice president of UMFCCI and managing director of Myanmar Agribusiness Public Corporation, who leads the organisation’s tax working group. “We decided to work closely with the government and the legislature in order to reflect the private sector’s perspectives on tax laws. We need to raise awareness of taxation and ensure responsible businesses that pay taxes,” he said. He said the taxpayers’ base should be expanded while tax rates should not be increased. He added that private firms had decided to work closely with the Inland Revenue Department to raise their awareness on taxation.
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  In order to enhance customs administration, the Customs Department initiated a new program on Authorized Economic Operators (AEO)

  As part of Myanmar government’s efforts to enhance customs administration, the Customs Department initiated the new program on Authorized Economic Operators-AEO and conducted the public awareness for the import and export companies, agencies, freight forwarders and departments concerned at the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), Yangon. This new program aims to allow trade operators with a good record of customs compliance and a solid commercial records management system, to receive a range of trade facilitation benefits, including quicker customs processing, according to the State Counsellor’s office on December 22.
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  Construction material prices slumped since the beginning of this month despite more construction projects

  According to con¬struction material suppliers, prices of cement, sand, and gravel used in construction have been dropping since the beginning of this month despite more construc¬tion projects. The price of a cement bag was at K6,000 last month and is now K5,500 this month. The price of gravel per unit was at K62,000 and has now fallen to K50,000 this month. ‘‘The construction mar¬ket is not in a severe situa¬tion as there are undergo¬ing construction projects. Only brick prices are up since supply has fallen short. The other construc¬tion material prices such as cement and sand have fallen,’’ Ko Than Aung from Daw Ngwe Win and Sons construction materi¬als shop, said.