ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar Government formed a tribunal to probe contentious Chinese backed city development project near the Thai border in Karen State

  The Myanmar government has formed a tribunal to investigate irregularities surrounding a controversial China-backed city development project near the Thai border in Karen State. The planned mega resort and city expansion project is controlled by the Karen State Border Guard Force, a Myanmar military-backed armed group led by Colonel Chit Thu and formerly known as the Democratic Karen Buddhist Army (DKBA). The project is a collaboration between a Hong Kong-based company called Yatai International Holding Group (IHG) and Col. Chit Thu, officially dubbed the “Myanmar Yatai Shwe Kokko Special Economic Zone.” The project has sparked criticisms due to a lack of transparency, land confiscations, confusion over the scale of construction and the growing influx of Chinese money as well as suspected illicit activity and local concerns about the social impacts of casino businesses.
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  Investor interests to invest their investments in Yangon continue despite coronavirus pandemic

  The coronavirus pandemic does not appear to have diminished investor interest in Yangon, a senior regional official says. U Myo Khaing, secretary of Yangon Region Investment Committee said that since the coronavirus that causes COVID-19 was first detected in Myanmar in Mach, four businesses were given approval to invest some US$8 million in Yangon. “Workshops and factories in the region are now operating as normal and have not been severely affected by the out said U Myo Khaing.
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  More than 1.9 million broiler chicks permitted to import with 2 months in order to help meet the domestic needs

  In a bid to help meet the domestic needs, more than 1.9 million broiler chicks have been allowed for import between 15 May and 15 July, according to Myanmar Livestock Federation (MLF). Following the prevention measures to contain the spread of coronavirus, 40 per cent of broiler poultry businesses halted due to the decreasing demand, dropping the production of broiler chicken and hiking the chicken price.
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  International Finance Corporation (IFC) prescriptions for Myanmar economic recovery at its diagnostic report on private sector

  While the COVID-19 pandemic is still creating economic and trade disruption across the globe, Myanmar is slowly and cautiously opening up its economy in order to get back on the rails. The economic disruption across all sectors of the economy and society is palpable with the forecast of lower growth, closure of private sector units and increase in unemployment. Measures for protecting vulnerable population through increase in social protection spending, stimulating growth in demand, augmenting the supplies and promotional measures for private sector to resume production and business activities has been the essence of the COVID-19 economic recovery plan. There have been mixed reaction on this recovery plan, with some sections indicating its inadequacy and others identifying it as a spring board for accelerating reforms and recovery of the economy. It is in this context, IFC’s diagnostic report on private sector, ‘Creating Markets in Myanmar: Building Markets for Sustainable Economic Recovery’, provides crucial insights on what ails the private sector, its challenges, prospects and how government can provide a policy environment. This report takes a short term as well as medium term view on private sector growth in the country which has its complex history.
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  Yangon Region Investment Committee (YRIC) has approved three foreign projects and one domestic project worth K 1 billion that will create 656 jobs opportunities

  The Yangon Region Investment Committee, at a videoconference held on 10 June, has approved three foreign projects from China and Hong Kong, with an estimated capital of US$7.397 million and one domestic project worth K1 billion. The projects will create 656 jobs. They will invest in the manufacturing sector, according to the Directorate of Investment and Company Administration. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis.
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  KBZ Bank introduced the COVID – 19 Credit Assistance Program for SMEs to provide urgent financial relief to its existing and new SME customers

  With the economic fallout from COVID-19 impacting small and medium-sized enterprises (SMEs) across Myanmar, KBZ Bank has introduced the COVID-19 Credit Assistance Program for SMEs to provide urgent financial relief to its existing and new SME customers. Under the program, launched on 11 June 2020, SMEs can apply for the six-month extension of current Overdraft and Term Loans, six-month deferral on Principal Loans and Interest, and Capitalization on Principal Loans and Interest for up to six months to ease the financial burden they face during this challenging period. These recovery financing options apply to Term, Overdraft, or JICA SME Two-Step loans obtained at KBZ Bank’s SME Banking Department.
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  Myanmar Government signed a power purchase agreement (PPA) for first LNG plant in Myanmar

  Myanmar has signed a power purchase agreement (PPA) to buy electricity from a liquefied natural gas (LNG) plant. The project company of CNTIC VPower Group inked a five-year PPA with the Ministry of Electricity and Energy’s Electric Power Generation Enterprise (EPGE) on June 10. Tariffs and other details have not been disclosed, but the energy ministry’s deputy permanent secretary U Soe Myint told local media on June 8 that the government would be paying around US$0.12 per unit (kilowatt-hour) of electricity. The 400-megawatt LNG-to-power plant, located in Yangon’s southeast Thaketa, started commercial operations on June 14. The plant uses LNG imported from Malaysia. LNG cargoes totalling 190,000 cubic metres were delivered to Myanmar on June 4 a free-on-board arrangement by Malaysia's Petronas.
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  Business Plan Contest 2020 for a post-coronavirus economic recovery will be held in July 2020

  Business Plan Contest 2020 for a post-coronavirus economic recovery will be held starting from July, according to the Directorate of Investment and Company Administration (DICA). Due to the negative impact of the pandemic, the world countries are experiencing economic challenges and hardships. In response to possible challenges and obstacles in the post- coronavirus, Green Hills Development Ltd organizes Business Plan Contest 2020, supported by domestic businesses and business associations in Myanmar. The objectives behind the contest are to contribute towards a post-coronavirus economic recovery, increase job opportunities, promote investments in Myanmar and boost trade with foreign partners. Those who like to participate in the contest or who like to contribute in-kind or financial support can send enquiry to contact@mmbizplancontest2020.com and contact@greenhillsdevelopment.com. Those who will support the contest can send a company or organizational logo.
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  Foreign investors interest in the Myanmar garment manufacturing sector is still strong despite lower exports in 2019 – 2020 fiscal year

  Foreign investor interest in the garment manufacturing sector is still strong despite a fall in the volume of garment exports in fiscal 2019-20, according to the government. Of the 178 foreign enterprises endorsed by the Myanmar Investment Commission (MIC) and permitted to invest in Myanmar between October 1 and May 31, more than three quarters channeled capital into the manufacturing sector, according to the Directorate of Investment and Company Administration (DICA). The data showed that the new investors include garment manufacturers. The MIC will prioritise investments in garment manufacturing going forward as these are labour intensive industries likely to create a large number of jobs, Director General of DICA U Thant Sin Lwin told state media. Manufacturers that are able to produce face masks and other personal protective equipment related to COVID-19 will also be given priority.
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  Myanmar Government reiterated its desire to press ahead with the proposal to build an international airport in Bago Region

  The Myanmar government this month reiterated its desire to press ahead with the proposal to build an international airport in Bago Region, around 80km from Yangon. Transport Permanent Secretary U Win Khant said that the Hanthawaddy airport project will be implemented with a loan from Japan. “There are a lot of prospects for development. I believe we’d be able carry out the project with the loan from Japan,” said the permanent secretary at a press conference held in Nay Pyi Taw on June 10. The legacy project, which was first initiated in the early 1990s, has had difficulties to secure actual investments to take off.