ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Yanghee Lee, Special Rapporteur on the Situation of Human Rights in Myanmar, states that SEZ impact on communities must be addressed

  INVESTORS and developers of Special Economic Zones (SEZs) have responded to criticisms from the Special Rapporteur on the Situation of Human Rights in Myanmar, who stated that all SEZs in the country have adversely affected communities. Kyaukphyu’s chief investor said it is the government’s responsibility to resolve the concerns related to land acquisition, while the Thilawa SEZ developer highlighted the initiatives to facilitate communications with residents. Myanmar currently has one SEZ in operation – Thilawa SEZ in southern Yangon, while SEZs are proposed in Dawei in Tanintharyi Region and Kyaukphyu in Rakhine State. In a report providing an overview of human rights developments in Myanmar up to August 25 released last month, Yanghee Lee, Special Rapporteur on the Situation of Human Rights in Myanmar, said that development is integral to the future prosperity of the country but “it is important that development proceeds in a sustainable way which respects local communities’ rights”.
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  Government ups attempts to legalise livestock trade with neighbours

  The government is upping attempts to regulate the livestock trade between Myanmar and its neighbours. About 100,000 cattle are illegally exported to Thailand every year, said U Khin Maung Lwin, Assistant Secretary of the Ministry of Commerce. Official customs data from Thailand have no record of the number of cattle entering the country from Myanmar, but there are some records in Mae Sot, Thailand. According to that data, some 100,000 cattle are exported illegally to Thailand every year via border routes. Aside from the records in Mae Sot, there is no data from the other border towns and thus the exact figures of illegal cattle export cannot be known, U Khin Maung Lwin said. But cattle have also been illegally exported to China, a source from Muse in Shan State, which borders Yunnan province, told The Myanmar Times.
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  Woodside suspends further drilling offshore in southern Rakhine State to evaluate commercial viability of gas

  Woodside has recently announced that it was suspending further drilling offshore in the southern Rhakine state as they will evaluate the commercial viability of gas quantities found in Blocks A-6 and AD- 7. It is reported that the suspension will be until 2018. While a drilling suspension is not uncommon in the offshore markets, concerns over the future of the offshore gas fields deepened when Woodside cancelled a seismic tender ten days ago. This does not bode well for the sector and particularly for those that plan to build supply bases to provide support services to offshore. It goes without saying, that the Woodside drilling campaign spurred on interest in the need for an in-country Offshore Supply Base Development (OSB) solution to replace logistics coming from Singapore.
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  Yangon Regional Government planned to revise the existing industrial zones and create 12 new industrial zones in Yangon outskirts

  Yangon Regional Government is planning to revise the existing industrial zones and create 12 new industrial zones in the re¬gion, Yangon’s Chief Min¬ister, U Phyo Min Thein, said at a meeting of Union of Myanmar Federation and Chamber of Com¬merce and Industry (UM-FCCI) last week. There are 45 townships in Yangon Region; 33 in Yangon’s municipal area and the rest on the out¬skirts of the city. At pre¬sent there are 29 indus¬trial zones in the region, all within Yangon’s mu¬nicipal area. The aim of the new small industrial zones is to cre¬ate local job opportunities for people living on the outskirts of Yangon and save them time and effort commuting to and from the current 29 industrial zones in Yangon’s munici¬pal area.
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  Yangon Region Investment Committee approved six foreign businesses to invest more than US$9 million in the industrial sector

  The Yangon Region Investment Committee has allowed six businesses from Singapore, China and Hong Kong to invest more than US$9 million (12.3 billion kyat) in the industrial sector prior to October 11. The committee held its meeting at the office of the Yangon Region government in Yangon on October 11. Committee Chairman Chief Minister Phyo Min Thein attended the meeting and discussed future actions that could speed up investments.. At the meeting, the committee also approved a joint-venture business in Yangon in accordance with the Myanmar Investment Law. The business is expected to invest US$0.767 million with the prospect of creating 1,002 jobs.
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  TPG announced sale of its stake in Myanmar Distillery Company Group to Thai Beverage Public Co Ltd

  TPG, a global alternative asset firm, announced it has sold its stake in Myanmar Distillery Company Group (“MDC”) to Thai Beverage Public Company Limited (“Thai Beverage”). Myanmar’s leading whisky producer was acquired by one of Asia’s largest spirits groups, according to a press release on October 12. MDC is the largest spirits company in Myanmar and is the producer of Grand Royal, the nation’s leading whisky brand. The Grand Royal brand employs more than 2,500 staff and supports local businesses through its network reaching 1,300 wholesalers and over 20,000 retailers. Founded in 1995, MDC produces and sells a broad range of spirits including whisky and gin. It operates two distilling, blending, and bottling facilities in Yangon and Mandalay.
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  Illegal trade, a weaker currency and fluctuation in commodity prices have led to Myanmar’s trade deficit

  Myanmar’s trade deficit has widened on the back of fluctuations in commodity prices, illegal trade and a weaker currency. In 2016-17, the trade deficit amounted to over US$5.5 billion, up from US$5.4 billion in 2015-16 and US$4.9 billion in 2014-15, according to the statistics released by the Central Statistical Organisation. Among the country’s imports is diesel. Between September 17 and September 23, Myanmar imported over 64,000 tonnes of diesel worth US$32 million by sea, representing an increase of over 278,800 tonnes compared to the week before, according to government media reports. About a third of the diesel entered the country through Myeik, near the Myanmar-Thailand land border trade camp.
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  Central Bank of Myanmar (CBM) allows local banks to provide loans without the need for collateral (U Set Aung, Deputy Minister for Planning and Finance)

  Local banks are now permitted to extend loans without the need for collaterals, U Set Aung, Deputy Minister at the Ministry of Planning and Finance, told The Myanmar Times at the 5th Asia SME Conference in Naypyitaw on October 14. “The Central Bank of Myanmar (CBM) has allowed local banks to provide loans without movable and resalable assets as collaterals provided the banks set the suitable risk management policies in place. The loan process will become complete when the banks can implement proper risk management,” U Set Aung said. The development should serve as a welcome reprieve for many cash-strapped SMEs. In Myanmar, access to funds is the main barrier in the way of growth and development of small and medium enterprises (SMEs). This is because loans issued to businesses are approved based on collateral –typically property or land - and are mostly over periods of just one year. As such, relaxing the loan collateral system is necessary to help more SMEs qualify for loans.
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  In separate acquisitions totaling US$ 741 million, Thai Beverage PLC acquires 75 percent share in Myanmar Distillery Co

  Singapore-listed Thai Beverage PLC has acquired a 75 percent share in Myanmar Distillery Co in separate acquisitions totalling US$741 million, media reports said. The acquisitions include a $500 million deal with Texas-based TPG Capital, which said in a statement on October 13 it was selling its 50 percent stake in Myanmar Distillery to ThaiBev, owned by Thai billionaire Mr Charoen Sirivadhanabhakdi, the reports said. Reuters quoted a source with direct knowledge of the sale as saying TPG Capital had acquired its stake in Myanmar Distillery, maker of top-selling Grand Royal Whisky and other brands, for $150 million in December 2015. ThaiBev said in a filing with the Singapore stock exchange it had also acquired an additional stake in Myanmar Distillery from other parties, giving it a 75 percent share in the company.
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  In order to provide limousine services in Yangon, Myanmar’s commercial capital by early 2018, Singapore-based Strides Transportation signed a joint-venture agreement with Toyota Tsusho Asia Pacific and a local company, Alliance Urban Transport, on October 12, 2017

  Singapore-based Strides Transportation signed a joint venture agreement on October 12 in Yangon to provide limousine services in Myanmar’s commercial capital in early 2018. Under the partnership, SMRT Strides Toyotsu Alliance will take 60 percent of stakes in the joint venture, Toyota Tsusho Asia Pacific ( a member of the Toyota Group of Companies) and Alliance Urban Transport (AUT) will split the rest equally, at 20pc each. AUT is a local company and partly owned by Elite Telecom Public Company Limited and JFQ Capital, to which SMRT Taxis is the consultant for their vocational school in Yangon. Strides is a subsidiary of SMRT Corp. “As Myanmar is developing its economy, the country has been accepting economic travellers. So we thought that to give limousine service is becoming needed. We want to fulfil and Myanmar needs a good and reliable limousine rental service,” said Tony Heng, SMRT managing director.