ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar government believes it is on the right track given the recent enactment of the new Companies Law even though recent surveys stressed a drastic decline of investor confidence in Myanmar

  THOUGH recent surveys have stressed a drastic decline of investor confidence in Myanmar, the government still believes it is on the right track given the recent enactment of long-awaited new companies law. Aung Naing Oo, director general at the Directorate of Investment and Company Administration (DICA) and secretary of Myanmar Investment Commission, said the law was a game changer that would bring optimism back to the nation. He said that allowing more foreign participation in Myanmar companies would obviously draw investors’ interest in the country while also protecting the interests of local businesses.
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  State Counsellor encourages greater transparency with resource sector investors

  State Counsellor H.E. Daw Aung San Suu Kyi received representatives from the International Investors for the Mineral Development Association (IIMDA). Measures to improve transparency in the sector were a priority, including enhancing the availability of data and providing public access to resource agreements, the IIMDA said in a statement. International standards such as the Extractive Industries Transparency Initiative (EITI) were also considered. The State Counsellor called on IIMDA members to pay attention to transparency and accountability in the areas where they operated. Richard Taylor, IIMDA Chairman, said that responsible resource sector investment could play an important role in developing Myanmar’s economy. Investment in the sector by companies that adhered to international best practice could be a catalyst for change and would address challenges posed by traditional mining practices. There were a number of lessons learnt from international experience in promoting inclusive economic growth to mitigating the impacts of resource development.
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  Central rubber market expected after enactment of new rubber law in late 2018

  The drafting of a new Rubber Law, which aims to create a central rubber market and raise the export quality of Myanmar rubber, is close to three quarters complete and will be enacted in late 2018, U Khaing Min, secretary at the Myanmar Rubber Planters and Producers Association (MRPPA), told The Myanmar Times. Myanmar is drafting fresh legislation which will lead to the establishment of a central rubber market once approved. It will control and release the market price for locally produced rubber, ensuring price stability and raising demand from foreign buyers. The central rubber market will also become the main platform on which local and foreign businesses can bid for rubber in Myanmar. Notably, it will facilitate the trade of local rubber and ensure producers are paid a fair price. This is expected to raise the quality of locally produced rubber and enrich the entire value chain over the longer term.
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  The Central Bank of Myanmar (CBM) now allows foreign banks to provide export financing and related banking services for domestic exporters

  Central Bank of Myanmar (CBM) is now allowing foreign banks to provide export financing and related banking services for domestic exporters, according to its directives released on December 8. The foreign banks which want to provide services must obtain a permit from CBM. ‘‘Not having steady money flow is one of the reasons Myanmar's economy is slow. The change, in my opinion, is a positive step. At the moment, the services are allowed only for exporters, but in the future, it should also be allowed for importers,’’ U Myo Thet, Vice President of Union of Myanmar Federation and Chambers of Commerce and Industry, said.
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  Directorate of Investment and Company Administrati0n (DICA) defended delays in implementing the Companies Law

  YANGON — The Directorate of Investment and Company Administration has rejected criticism of an eight-month preparation period to implement major corporate law reform at a time of rising concern about the government’s economic management. The long-awaited Myanmar Companies Law was approved by President U Htin Kyaw on December 6 but DICA said at a briefing a week later that it could not be implemented until August 1, 2018. “This is not a delay,” DICA director general U Aung Naing Oo told Frontier on the sidelines of the briefing in Yangon on December 13. Much had to be done to prepare for the introduction of the law and ensure its smooth implementation, Aung Naing Oo said.
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  Hong Kong and ASEAN signed a new Free Trade Agreement (FTA) to promote business collaboration

  A new Free Trade Agreement (FTA) between Hong Kong and the Association of Southeast Asian Nations (ASEAN) and a related Investment Agreement are set to create fresh opportunities for business collaboration between Hong Kong and Myanmar. “These two agreements will provide a more competitive platform for companies throughout the ASEAN region to do business in Hong Kong and to reach new markets, particularly those in Mainland China and along the routes covered by the far-reaching Belt and Road Initiative,” said Edward Yau, Hong Kong’s Secretary for Commerce and Economic Development. Mr Yau added that the agreements are very comprehensive, covering trade in goods and services, investment, economic and technical co-operation, dispute settlement mechanism and other related areas.
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  Yangon Regional Government plans to establish a new Special Economic Zone (SEZ) in Dala Township after completion of the Yangon- Dala Bridge

  A new Special Economic Zone (SEZ) will be established at Dala township in the Yangon Region after completion of the Yangon-Dala Bridge, said Yangon Chief Minister U Phyo Min Thein at the Challenges for Business Enterprises in 2018 public talk at the Union of Myanmar Federation of Chambers of Commerce and Industry headquarters on Sunday. Construction of the Yangon-Dala Bridge is expected to commence by year-end and be complete in the 2020-21 fiscal year, according to the Ministry of Construction.
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  The new Condominium Rules allow more flexibility for foreign investors to invest in the local property sector

  Foreigners will be given more flexibility to invest in the local property sector, according to new rules under the Condominium Law announced Thursday. The Condominium Rules are the final steps of the implementation of the Condominium Law, which was approved last year. The rules, which were signed by the Union Minister for Construction on December 7, will be published “soon” and comes amid a slowdown in the local construction and property sectors. Under the new rules, foreigners will now be permitted to develop property, subject to approval from the Myanmar Investment Commission, said Daw Moe Thida, Deputy Director from the Department of Urban and Housing Development (DUHD), in Nay Pyi Taw on Thursday. 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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  AIA Group Chief Executive discussed the company’s plans for Myanmar and the market situation of foreign and local insurance firms in the Myanmar market

  The Myanmar government is preparing to liberalise the insurance market and allow in foreign players, but it’s unclear whether that will be on a joint venture or fully owned subsidiary basis. Mr Ng Keng Hooi, group chief executive and president of AIA Group, discusses the state of the insurance market, his company’s plans for Myanmar and the perceived lack of independence of the local regulator with Frontier’s Kyaw Ye Lynn.
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  To facilitate cross-border settlement within Asia, Myanmar will become a member of the Asian Payment Network (APN)

  Myanmar will become a member of the Asian Payment Network (APN), which was established to create a common payment settlement platform within the Asia-Pacific region, said U Zaw Lin Htut, CEO of Myanmar Payment Union (MPU). MPU has already met with officials from APN, and is waiting for the membership announcement to be made, U Zaw Lin Htut said at the second MPU annual meeting held in Yangon on Sunday. “We have met with APN many times. We think they will confirm Myanmar’s membership at the yearly APN conference meeting in 2018,” said U Zaw Lin Htut. The APN was formed in 2006 by the central banks of Singapore, Malaysia, Indonesia and Thailand with a view of establishing a cross-border settlement network in Asia. That network has since expanded to a total of 10 countries, including the Philippines and Vietnam as well as South Korea, China, Australia and New Zealand.