ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  The upgrade of Thandwe airport has commenced with work on extending the runway already takes place

  The upgrade of an airport in Thandwe, Rakhihe State, a project listed under the Myanmar Project Bank, has commenced with work on extending the runway already taking place, said U Zaw Min, director of the Department of Civil Aviation (DCA). The US$5 million runway will enable it to handle commercial Airbus and Boeing planes after it is complete in 2021. Currently, it is only able to service ATR 72/500 and Emirate aircraft. Work will include a 2-inch asphalt concrete overlay applied to the existing runway. Thandwe is the local airport to Ngapali beach, a major tourist attraction in Rakhine State. Its completion is expected to draw more tourism revenue .
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  Myanmar business owners called CBM intervention on exchange rate as they are already having to deal with virus outbreak

  With the COVID-19 virus outbreak set to impact Myanmar’s economy and recent rapidly fluctuating foreign exchange rates, the Union Federation of Chamber of Commerce and Industry (UMFCCI) has requested the Central Bank of Myanmar (CBM) to intervene. “COVID-19 will have impacts on Myanmar’s economy. At present, tourism has plummeted and regular exports of fruit to China have slowed to a trickle. From a global perspective, many foreign governments and central banks are instituting quick responses to recent situations. In Myanmar, another recent issue is the fluctuation of foreign exchange rates. The kyat has strengthened against the US dollar, making local products more expensive for foreign buyers” said UMFCCI Secretary General U Aye Win on March. 5 “We can foresee how far they impacts will reach – they may affect all local businesses including severe impacts on agriculture-related sectors,” U Aye Win added.
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  Tax seminar and MoU signing ceremony was held to improve tax compliance practice and promote tax knowledge to facilitate taxpayers from (Official Assessment System–OAS) to (Self–Assessment System–SAS)

  Tax seminar and MoU signing Ceremony held in Yangon on Thursday. This seminar was to facilitate taxpayers in their new role as SAS TAX payers to improve tax compliance practice and promote tax knowledge to reduce tax complexity during the transition period from (Official Assessment System–OAS) to (Self–Assessment System–SAS) in Myanmar. Htun Than & Associates and Baker Tilly (Myanmar) co-hosted the seminar. The two associations signed MoU to build business collaboration in this ceremony. Chairman, Htun Than & Associates, Htun Than said “We will serve as tax consultant for tax payers. Under the MoU, we will provide tax service and the Baker Tilly Myanmar will take care of accounting process. This event includes discussions on what is SAS and how it benefits the companies using it.” CEO & Senior Tax Advisor, Htun Than
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  Microfinance companies need approval from the Microfinance Regulation and Supervision Division (MRSD) to provide microloans to government and private-sector employees.

  To provide microloans to government and private-sector employees, microfinance companies need approval from the Microfinance Regulation and Supervision Division (MRSD), the regulator said via a statement. Lenders will not need permission to provide microloans to their own employees, but they need to inform the regulator of their loan-granting process. MRSD’s statement also said that microfinance companies may not ask for recommendation letters from the department where a borrower works, deduct their salary as loan repayment, or pressure borrowers with loan-default action under the Civil Servant Law and Regulation framework. Furthermore, lenders are required to give government employees and their own employees the same treatment when considering loan applications.
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  The Ministry of Construction will invite Firms to bid for the upgrading of the Yangon–Mandalay Expressway.

  The Ministry of Construction will invite Expressions of Interest from the private sector for the upgrading of the Yangon–Mandalay Expressway, U Han Zaw, Minister of Construction said. The project is one of the 58 national development projects listed in the Myanmar Project Bank. The project involves upgrading the 524 -km expressway, currently the most important transport route in Myanmar, to a international-standard expressway with proper safety and road control facilities. The first 64 km from Yangon to Bago is expected to be upgraded with assistance from the Asia Development Bank. Feasibility studies are now being conducted for the remaining sections of Bago-Phyu-Naypyitaw-Meikhtila-Mandalay.
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  The value of stocks traded on the Yangon Stock Exchange (YSX) increase to K1.48 billion in February compared with K1.25 billion in January 2020

  The value of stocks traded on the Yangon Stock Exchange (YSX) last month was registered at K1.48 billion, a significant increase compared toK1.25 billion in January 2020, according to the monthly report released by the exchange. Compared with January, the volume of shares traded on the exchange showed a small drop in February. While 188,919 shares were traded on the exchange in February, 196,836 shares were traded in January. Yet, the share prices of MTSH, MCB and TMH showed a slight increase in February, according to the monthly report of the YSX At present, shares of five listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), and TMH Telecom Public Co. Ltd — are being traded on the stock exchange. In February, the shares of FMI closed at K11,000, MTSH at K3,950, MCB at K8,200, FPB at K22,500, and TMH at K2,800 as per YSX’s monthly data.
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  In partnership with Yoma Bank, Prudential Myanmar Life Insurance Limited has signed with Yoma Bank to provide Myanmar customers with life insurance solutions.

  Prudential Myanmar Life Insurance Limited, a subsidiary of UK-based Prudential plc, has signed a partnership with Yoma Bank to provide Myanmar customers with life insurance solutions. The two firms signed a memorandum of understanding allowing Yoma Bank to distribute Prudential Myanmar’s savings and protection products at its branches across the country, according to a release on March 5. Yoma Bank has over 80 branches across 43 cities. The announcement comes after the Insurance Business Regulatory Board (IBRB) on March 4 released three directives, including one - Directive No 2/2020 - allowing banks and microfinance institutions to operate as agents selling insurance after obtaining approval from the Central Bank of Myanmar and Microfinance Business Supervisory Committee. The practice, known as bancassurance, is expected to help insurance providers extend the reach of their products. According to research commissioned by KBZ MS, the total bancassurance channel in Myanmar could grow to K2 trillion [US$1.3 billion] if applied to the total projected insurance market in Myanmar by 2029.
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  Kachin Government and Myanmar Heng Ya Investment Development Co., signed a MOU for the development project of Kampaiti Business Park

  The Kachin State Government and Myanmar Heng Ya Investment Development Co. Ltd signed a Memorandum of Understanding for developing the Kampaiti Business Park yesterday at the state office. At the event, U Wei Lin, Kachin State Minister for Finance, Revenue, Planning and Commerce spoke about implementing the business park project in line with the existing law. He also discussed matters related to job creation, trade promotion at Kampaiti gate, cooperation to combat illegal trade, and business opportunities for local people. The managing director of Myanmar Heng Ya Investment Development Co Ltd also provided details on the project.
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  Myanmar Government faced setbacks in enforcing compliance with Myanmar’s Extractive Industries Transparency Initiative (EITI)

  The government says it lacks the mechanisms to force companies to disclose ownership information through a public registry, which are part of recent measures to clean up corruption in the extractive industry. Myanmar’s Extractive Industries Transparency Initiative (EITI) unit, a government body under the finance ministry, held a press conference on February 28 to address criticisms over those measures. According to a report released by natural resources expert Charlotte Boyer on the same day, out of a total of 163 extractive companies, 121 submitted information about their beneficial owners, but 31 of those had major flaws or disclosed insufficient information. The “significant gaps” in their submissions undermined the credibility of the data or showed a weak understanding of the beneficial ownership requirements, the report said.
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  The companies will invest USD $ 24 million in CMP garment and bag making business in industrial zones in Yangon Region

  Companies will engage in CMP garment and bag making businesses in industrial zones in the Yangon Region including Thilawa Special Economic Zone by investing nearly US$24 million, according to the Yangon Region Investment Committee.