Weekly Business News from Myanmar

Locals lose hope on Dawei Special Economic Zone amid rising concerns on the project
HOPES OF local residents are fast waning for the revival of the long-suspended special economic zone in the Dawei district of Tanintharyi region bordering Kanchanaburi province. Some villagers living in the proposed project area and near the road link to Thailand shared their frustrations at the launch of a report by EarthRights International entitled, “Communities in the balance: local voices and prospects for the Dawei SEZ” last week. “We once had high hopes for the project, but now they are all gone. We will be more than happy to welcome the project if it is resumed, but it should come up with a good result rather than beautiful words that are not realistic at all,” said Than Shein, who lives in Payadard Village a part of the proposed site for the Dawei SEZ. He said the lives of those living in the six villages where the first phase of the project were to be implemented is even worse than during the term of the previous government. “We have nothing. Road infrastructure is really bad, and we do not have access to electricity. What is worse, there are no job opportunities here. We have been left far behind other townships in Tanintharyi region,” he said.
Myanmar Centre for Responsible Business (MCRB) organized workshops to raise awareness on Voluntary Principles on Security and Human Rights for extractive companies in oil and gas industry as well as the mining sector in Myanmar
Protests and demonstrations pose a serious security threat to the oil and gas industry as well as mining sector in Myanmar, a recent poll among industry players showed. Yangon-based Myanmar Centre for Responsible Business (MCRB) organised workshops aiming to raise awareness of the relevance of Voluntary Principles on Security and Human Rights (VPSHR) for Myanmar’s extractive companies, and identify the most serious security issues for the industries. The workshops were held in the capital city and Yangon in late November, attended by stakeholders from public and private sectors. At the VPSHR’s inaugural meeting for the Myanmar’s working group in May, co-chaired by the UK Embassy and TOTAL, a scoping report on VPSHR implementation, proposed by MCRB, International Alert, an NGO, and PeaceNexus, Swiss-based peacebuilding foundation, was approved.
The Department for International Trade (DIT) of the British Embassy organized the UK Capital Market and Insurance Conference in Yangon to strengthen support for the development of Myanmar's capital market
The UK Capital Market and Insurance Conference 2018 was held in Yangon on Wednesday. The conference was organized by the Department for International Trade (DIT) of British Embassy in Yangon. It aims to strengthen the support of DIT in Myanmar growing capital market, and also hopes to go forward in future partnership. Deputy Director, Department for International Trade, Warren Pain said “Today event is really indicative of what we are trying to do as UK government to play a part in Myanmar starting economic growth. Such positive GDP figures that we are seeing and the opening at international plays of key sectors economy including today capital market. It is particularly relevant for Myanmar to have an effective capital market in such as insurance market opening up to international play.” The experts from business sectors discussed three topics- Leaders’ Dialogue, Bond Market Development for Myanmar and Insurance Business Support at the conference.
The Central Bank of Myanmar (CBM) will grant loans without collateral with more than 13 percent annual interest rate
The Central Bank of Myanmar (CBM) will grant loans without any collateral with more than 13 per cent annual interest rate, said Soe Thein, Vice-Governor of the central bank, at a ceremony to sign the credit Bureau Software License between Myanmar Credit Bureau Ltd and Equifax New Zealand Services and Solutions Ltd, at Myanmar Banks Association on December 10. “The central bank has to grant loans based only on collateral. Now entrepreneurs can take loans with the 13-per-cent annual interest rate by putting collateral up. They can take loans without any collateral. The loan interest rate will be higher than the current rate. It will materialize soon,” he added.
The Central Bank of Myanmar (CBM) denied that huge dollar purchase was made to benefit the local banks
The Central Bank of Myanmar has denied claims that its purchase of more than US$30 million from local private banks last week, at a time when the currency was weak, was made specifically in order to benefit the lenders. “The greenback weakened steeply that day [Dec. 4]. Media reports claimed that the central bank bought U.S. dollars fearing that it would weaken. That is wrong. Secondly, the accusation that we intentionally bought U.S. dollars to benefit banks is totally inaccurate,” Central Bank of Myanmar vice governor U Soe Thein said on Monday at the Myanmar Banks Association in Yangon. The exchange rate was 1 dollar to 1,545 kyats on the morning of Dec. 4, but the dollar had weakened to 1,490 kyats by that evening. The central bank then bought dollars from private banks, causing the kyat to slump against the dollar again.
Myanmar Sustainable Aquaculture Programme (MYSAP) 2017 - 2022 will be implemented by the Fisheries Department and the German Corporation for International Cooperation (GIZ) to support aquaculture research and increase fish production in Shan State
The Myanmar Sustainable Aquaculture Programme (MYSAP) will push for aquaculture research and increased production of fish in Shan State. Although the state has the resources, it is not yet self-sufficient in fish production and has to rely on supply from other regions, according to the MYSAP. The Thanlwin River and its tributary, and the Inle Lake are the main fish resources in Shan State. As production in the state is not enough to meet the demand, it usually depends on Yangon, Mandalay, and Ayeyawady regions for supply of fish, according to the MYSAP. The MYSAP 2017-2022 is being jointly implemented by the Fisheries Department and the German Corporation for International Cooperation (GIZ). The project has received 22.25 million euros in funding from the European Union and the GIZ.
In cooperation with private companies, US- ASEAN Business Council and UMFCCI organized the Conference on Digital Transformation of SMEs in order to boost competitiveness
SMEs Conference on Digital Transformation to boost competitiveness took place in Yangon, Monday. It was jointly organized by US-ASEAN Business Council and UMFCCI in cooperation with private companies. This conference aimed to encourage the establishment of promotion of the Digital economy and to promote U.S. companies to ASEAN and to raise awareness in US about ASEAN as well. It is focused on the digitalization of Myanmar SMEs and integration to E-commerce, a digital toolkit for market expansion, smart and effective marketing content making for products and services as well as digital banking and payment solutions for SMEs.
Parami Energy will invest USD $ 25 million in the distribution of liquefied petroleum gas (LPG) next year (U Pyi Wa Tun, CEO of Parami Energy)
Parami Energy will accelerate the distribution of liquefied petroleum gas (LPG) next year, CEO U Pyi Wa Tun said yesterday. He said in a press conference that starting from December 12, 150,000 Parami LPG cylinders will be distributed in the market and before April 2019, 50pc of the LPG cylinders will be distributed in Yangon Region. After April next year, it will be distributed across the country. The capital involvement is currently K15 billion and another US$25 million will be invested over the next three years to build more factories. Currently, LPG is being imported via Thailand’s border. Myanmar does not have the infrastructure needed to produce its own LPG. About 70,000 tonnes of LPG is imported yearly from Thailand. Compared to 4 million tonnes per year consumption in Thailand, LPG consumption in Myanmar is still low, with less than 5pc of households. U Pyi Wa Tun attributed this to the lack of mass distribution in the local market.
Government implemented new Investment Ministry plan generates with mixed reactions from opposition politicians and political analysts
Critics of the government’s move to form a ministry for attracting investment say it was needed years ago, but supporters say the negative comments are premature. THE GOVERNMENT'S decision to create a new ministry to attract foreign investment has drawn criticism from opposition politicians and political analysts, but has been broadly welcomed by a business community affected by a flat economy. President U Win Myint announced on November 19 that the National League for Democracy government would establish a Ministry of Investment and Foreign Economic Relations and that it would be headed by Myanmar Investment Commission (MIC) chairperson U Thaung Tun. The ministry will take over the Directorate of Investment and Company Administration (DICA) and the Foreign Economic Relations Department from the Ministry of Planning and Finance.
Seven million kyats fine will be imposed on private banks for the undisclosed opening of new branches
Central Bank Vice-Chairman Soe Thein said that they would impose 7 million kyats fine on private banks if they did not inform them of the opening of new branches. “They must inform us if they open branches without our permission. They can either close these unauthorized branches or face the fine,” Soe Thein said. The Vice-Chairman was speaking to reporters after the signing ceremony of an agreement for establishing the first credit information centre, held at Myanmar Banks Association in Yangon on December 10.