Weekly Business News from Myanmar

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  Central Bank of Myanmar (CBM) will publish market-based reference exchange rate for the day, from today onwards

  The Central Bank of Myanmar (CBM) will publish a market-based reference exchange rate, or the aggregate of actual market rates for the day, from today onwards, according to a CBM press release. Effective today, the CBM Reference Exchange Rate of the Myanmar kyat against the US dollar will be calculated as the volume weighted average exchange rate of interbank and bank-customer deals during the day. The CBM’s objective is to manage excessive short-term volatility of the exchange rate. Up until yesterday, the CBM Reference Exchange Rate was based on the cut-off rate of its two-way interbank foreign exchange auction, which was introduced in 2012 to facilitate the development of the foreign exchange market.
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  Kaplan Myanmar University College and Teesside University in the UK signed a MOU to offer degrees attainable in Myanmar

  Kaplan Myanmar University College and Teesside University in the UK formalised their partnership by signing the Memorandum of Understanding today. With this agreement, students can now choose from a wide range of Bachelor’s Degree and Master’s Degree programmes from Teesside University to study and attain the qualification in Myanmar. The programmes to be offered through KMUC in Yangon are MSc in Engineering Management, Master of Business Administration, BA (Hon) Business with International Management, Business with Accountancy, Business with Human Resource Management, Business with Marketing, Business with Cyber security, Business with Project Management and BSc (Hons) Computing, Computer and Digital Forensics, Computer Games Animation, Computer Games Design, Computer Games Programming.
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  Value of stocks traded on the Yangon Stock Exchange (YSX) slide to K526 million from a record of K1.2 billion last year

  The value of stocks traded on the Yangon Stock Exchange (YSX) in January slid to K526 million from a record of K1.2 billion last year, according to the monthly report released by the stock exchange, state media reported. Currently, five companies are listed on the exchange. An estimated 89,570 shares were traded on the exchange in January, according to YSX. In spite of promotion events for investors, trading on YSX has remained lacklustre.
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  According to the representative of the Extractive Industries Transparency Initiative (EITI) in Myanmar, government coffers held back by State-owned Enterprise (SOEs)

  A representative of the Extractive Industries Transparency Initiative (EITI) said Myanmar’s government fails to understand the severity of how the so-called Other Accounts of state enterprises are holding back the country’s development. EITI will be organising a workshop on reforming state-owned enterprises (SOEs) engaging in this sector will be held mid-February, according to EITI trilateral coalition in Myanmar. Preliminary discussions for the workshop were completed in January and the three-day workshop will be the first of its kind before any amendments can be made on the 1989 SOEs Law. “The government side said it refused usage of the term ‘reform’ and that things are done according to the law, If reforms are required, the law must be amended first. After that we plan to hold that workshop,” said Daw Moe Moe Tun, central committee member of EITI trilateral coalition.
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  The breeders are called for lifting ban on repairing 10,000 acres of prawn farm in Mayanswebar prawn breeding zone in Kayuktan Township

  Due to the ban on repairing 10,000 acres of a prawn farm in Mayanswebar prawn breeding zone in Kyauktan Township, Yangon Region, 47 entrepreneurs that run the farm are facing difficulties so they have submitted a letter to the region chief minister calling for the lifting of the bann, said one breeder Min Maung Maung. The ban, in effect since January 5 last year, came after the authorities announced the establishment of a mangrove forest. "As they announced the establishment of mangrove forests, we have not been allowed to repair our farm since then. We have a lot of difficulties. We lost 70 percent of our productivity last year," Min Maung Maung. The request letter for lifting the ban was sent to the State Counsellor's Office in June last year. The second letter was then sent to the Yangon Region chief minister this year.
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  PTT Exploration and Production Public Co., Ltd will conduct an environmental impact assessment (EIA) of the offshore block called M9 before work begins in the second quarter of the year

  Thailand’s national oil and gas company PTT Exploration and Production Public Co Ltd will conduct an environmental impact assessment (EIA) of the offshore block called M9 before drilling exploratory and test wells in the second quarter of the year, the company has told Myanmar Times. PTTEP said it will conduct the EIA to ensure there is minimal impact on the site before work begins. The company said it is standard procedure for it to conduct the study before exploration and submit the results to the relevant authorities. An initial study of the area for the EIA was started early last year.
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  Union Minister Dr. Aung Thu urged rubber producers to produce high- grade industrial product targeting foreign market

  Rubber producers in Myeik District were encouraged by the Ministry of Agriculture, Livestock and Irrigation to produce high-grade industrial product targeting foreign market. At the meeting with local rubber producers in Myeik yesterday, Union Minister Dr Aung Thu urged the rubber business persons who can afford to invest and use high level production technologies to coordinate and combine with small scale producers of the region by sharing technology, create collective sales and strive toward creating a place in foreign market for rubber as a high-grade product. All related persons are to progress from exporting raw material to exporting of industrial goods and strive towards import substitution added the Union Minister. Union Minister Dr. Aung Thu and party then inspected the production stages of producing rubber crumbs at Pho La Min Rubber Industry rubber crumb factory near Nga Inn Village, Myeik Township where factory officials provided explanation. The Union Minister remarked on creating job opportunities for local people, organize small scale producers to combine and use the same technology to produce equal quality products, obtain more market share and profit through collective sales. He also remarked on making a production work that maintains the natural environment.
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  European Union decided to reintroduce import duties on exports from Myanmar by revoking certain GSP benefits

  The European Union has decided to reintroduce import duties on rice exports from Myanmar by revoking certain GSP benefits. The Myanmar Trade Promotion, however, does not believe it will have a severe impact on Myanmar’s rice exports. “Since the import duty is only on Indica rice, which is not our main export to EU, the import duty might not have much impact. Plus, the import duty is not very much,’’ said U Aung Soe, Director General of Myanmar Trade Promotion under the Ministry of Commerce. Myanmar is exporting around 400,000 tons of high quality rice to the EU. There are four types of rice being exported including broken rice. However, the volume of Indica rice, that the EU decided to reimpose import duties on, is only around 60,000 tons per year. “Without tax exemptions, it can be a little hard, but we will need to wait and see what the impact will be. Moreover, it will only be for three years,’’ said Ko Nay Lin Zin, Joint Secretary of Myanmar Rice Federation.
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  Myanmar enacted trademark law and industrial design law to protect intellectual property (IP); its passed into the legislation by the Pyidaungsu Hluttaw

  Myanmar has enacted legislation to protect intellectual property (IP)in another step forward for businesses in the country. On January 30, the Trademark Law and Industrial Design Law were passed into legislation by the Pyidaungsu Hluttaw. However, both laws provide that they will be effective only after a notification is issued by the President of Myanmar. “As such, while both are now statutes, their effect and implementation will continue to be deferred to a later date. This is the same approach adopted with other laws, such as the Companies Law and the Competition Law,” according to law firm Kelvin Chia Yangon in a February 1 note. So far, there has been no indication on when the President’s notification on the effective date of the Trademark Law or the Industrial Design Law will be issue. According to the law firm, it is likely that this will happen only after the implementing mechanisms, such as the trademark registry, have been properly established.
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  Central Bank of Myanmar expanded the primary mortgage market in order to provide people with more opportunities to own a home

  The Central Bank of Myanmar has increased home loans by up to 5 percent of a bank’s total loan portfolio, and removed the loan terms limits, according to a statement on January 15, 2019. This move is aimed at expanding the mortgage market in order to provide people with more opportunities to own a home. This is the latest change in a series of moves shaking up the financial markets.