Weekly Business News from Myanmar

Business people urged State Counsellor to reduce tax and bank loan interest rates in order to attract more local and foreign investors
Leading businesspeople urged State Counselor Daw Aung San Suu Kyi to reduce tax and bank loan interest rates during a meeting in the administrative capital Naypyitaw on Tuesday. Potential investors are maintaining a wait-and-see attitude and Myanmar’s economy is experiencing a slowdown, said leading builder U Maung Weik. Reducing bank loan interest and tax rates will attract investors, he said. “As the interest rate on bank loans is 13 percent, businesses find it hard to profit. There is a need to reduce this rate temporarily to 8 or 9 percent. We believe many investors will come back into the market then,” said U Maung Weik. “An investor has to buy equipment to start a business and then pay a 30 percent tax. They have not even started the business but have paid a 30 percent tax already. So, we’d like that the tax rate be reduced to 5 percent for one to two years,” he added.
Vice President U Myint Swe supported access to reliable economic data at the meeting on Myanmar Micro, Small and Medium Enterprises (MSME) 2017 survey in Nay Pyi Taw
A presentation for the Myanmar Micro, Small and Medium Enterprises (MSME) 2017 Survey was held at the Ministry of Planning and Finance building in Nay Pyi Taw yesterday morning, with Vice President U Myint Swe delivering the opening speech. In his speech, the Vice President said two surveys for the MSME population and two for quality in the production sector will be conducted within the years 2017-2018 and 2019-2020 to aid in establishing the “Myanmar Business Monitoring System” as part of the 2016-2020 Denmark-Myanmar agreement on development implementation with the Danish Government. The Vice President said Myanmar needs reliable data for setting fact-based policies, prioritized sectors, designing strategic plans and monitoring efforts. He thanked the Danish Ambassador and UNU-WIDER for providing financial and technological assistance. The MSME Survey includes over 71,000 commodity production businesses and highlights the needs for the development of SMEs and to increase their competitiveness while identifying their difficulties, said the Vice President. He added that the survey included invaluable data that charts a detailed map of the SME sphere in Myanmar.
Rakhine State Federation of Chamber of Commerce and Industries proposed the construction of a new port in Sittwe to the Vice President to facilitate Myanmar- Bangladesh trade
To facilitate trade in Rakhine State, U Tin Aung Oo, chair of Rakhine State Federation of Chamber of Commerce and Industries, last week proposed the construction of a new port in Sittwe during a meeting with the vice president. He said the port, which should be able to handle vessels of up to 20,000 tonnes, could be constructed under a Public Private Partnership (PPP). The proposal was met with approval from the government. The proposal comes after a surge in the volume of goods handled in Sittwe over the past five years. According to statistics from the Ministry of Transport and Communication, the volume of cargo handled at Sittwe rose to some 350,000 tonnes in 2017-18 from 200,000 tonnes in 2013-14. However, the flow of goods bound for Yangon from Sittwe is just 37,000 tonnes, which is around one tenth of the volume at Sittwe.
Insurance Business Regulatory Board (IBRB) will allow foreign insurance firms to operate locally in the country by 2018- 2019 fiscal year
The Insurance Business Regulatory Board (IBRB) will allow foreign insurance companies to do business in the country in the new 2018-19 fiscal year, which will commence October 1, U Zaw Naing, the board’s secretary, said on August 28. He said the IBRB, which was established by the Ministry of Planning and Finance in 2016, will allow foreign insurance companies to provide life and general insurance policies in 2018-19. The Insurance Business Regulatory Board (IBRB) will allow foreign insurance companies to do business in the country in the new 2018-19 fiscal year, which will commence October 1, U Zaw Naing, the board’s secretary, said on August 28. He said the IBRB, which was established by the Ministry of Planning and Finance in 2016, will allow foreign insurance companies to provide life and general insurance policies in 2018-19.
Myanmar’s state owned insurance company signed an agreement with a consortium of local and foreign firms to provide insurance to the buyers of government built housing units
YANGON — Myanmar’s state-owned insurer has signed an agreement with a consortium of local and foreign companies to provide insurance to buyers of government-built housing units. The insurance will be available on tens of thousands of units – and potentially far more, with the government planning to build and sell up to 1 million homes over the next few decades. Myanma Insurance on Tuesday signed a memorandum of understanding with Myanmar’s Shin Ye Htut Group, which is working with Hannover Re of Germany, Malaysia’s International Risk Management Consultants and DIT of Japan. The agreement will enable Myanma Insurance to provide life insurance and fire insurance to buyers of the units, said director general Daw Sandar Oo. Speaking after the signing yesterday, she said DIT would provide financing for those buying units through the Construction and Housing Development Bank, while IRMC will “calculate the risk of the housing projects”.
Private businesses are vital for developing countries, which is why priority is given to the participation of businesses in economic development
State Counsellor Daw Aung San Suu Kyi said private businesses are vital for developing countries and thus priority is given toward the participation of businesses in this important matter. However, all need to be duty conscious in this matter. It is important for every citizen to do their duty for the development of the country. In the economy, some say the government didn’t do this or that. We’ll accept such criticism. But at the same time, businesses also need to bear in mind that they also have duties and responsibilities. Our democratic system will succeed only when the people themselves believe that they have duties and are capable of performing them. If everything is to be done by the government, then, this is no longer a democracy. If there is no understanding about an economic system that is appropriate for democracy, there wouldn’t be success. When we attempt to work together, we all need to think what we can do and what our duties are. Corruption is most liable to occur in business/economy. A country’s economic dignity depends on how corruption free that country is.
Myanmar Investment Commission (MIC) allowed Korea-based Daewoo Company to manufacture and sell buses in Yangon under a joint venture investment
YANGON-Myanmar Investment Commission (MIC) has allowed Korea-based Daewoo Company manufacturing, assembling and maintenance services for passenger buses in Mingladon Township, Yangon Region, under a Joint Venture Investment. The information came from the MIC’s meeting held in Yangon on August 25th. The meeting aimed to securitize the suggestion that was submitted in accordance with the MIC laws and it approved three orders of investments. The Daewoo Bus Myanmar Company Limited Korea was given green light to manufacture Daewoo buses in Mingladon Township, Yangon Region, Yangon Golden Paragon Investment Co;LTD was allowed for Construction, Operation and Leasing of Residence and Commercial Area in Tharkayta Township, Yangon and Science and Tech International Myanmar University Co;LTD was also allowed to provide education services in the Mandalay Region.
Yangon Industrial Gas (Thilawa) Co., Ltd, a joint venture company between Bangkok Industrial Gas Co.,Ltd. and Yangon Industrial Gas Trading Co.,Ltd., will develop the largest industrial gas plant in Thilawa SEZ together with JFE Meranti Myanmar Co.,Ltd
Yangon, 22 August 2018 - Mr. Khin Maung Nyunt, Mr. Aung Kyaw, and Mr. Piyabut Charuphen, Director of Yangon Industrial Gas (Thilawa) Co., Ltd.(YIG), the affiliated company in Bangkok Industrial Gas Co., Ltd. (BIG),presided over the contract signing ceremony for the long-term supply agreement for sustainable development project in Myanmar between Yangon Industrial Gas (Thilawa) Co., Ltd. (YIG) and JFE Meranti Myanmar Co., Ltd. (JMM). YIG, the joint venture company between BIG, Thailand’s leading innovative industrial gas solution provider, and Yangon Industrial Gas Trading Co., Ltd., who is building the largest industrial gas plant in Thilawa SEZ, Zone B, will supply the gaseous Nitrogen and Hydrogen toJMM, and other products, liquid Nitrogen, Oxygen, Argon and gaseous Hydrogen throughout Myanmar. The contract was signedfor JMM’s the newest zinc and zinc aluminum coating technologies facility at Thilawa SEZ, Zone B by Mr. Peerapat Piboonlarpudom, General Manager of YIG and Dr. Sebastian Langendorf, CEO of JMM.
Yangon Regional Government plans to implement a new Yangon Vehicle Quota Certificate (YVQC) system for car importers in October 2018
The much-touted Yangon Vehicle Quota Certificate (YVQC) system for car importers will start in Yangon in October, said U Phyo Min Thein, the region’s chief minister, during a press conference on August 24. Under the new vehicle registration system, buyers will be allowed to bid for a YVQC, which gives them the right to apply for a license to import and own a vehicle in Yangon for a fixed period. Bidders can bid between K3 million and K9 million for the certificate. The system was originally supposed to commence in April. ‘’We are now preparing to issue Yangon licences for individual car importing under the YVQC system in October, after which we will be able to control the quota for cars imported into Yangon,” U Phyo Min Thein remarked. The decision is significant as it could spur more demand for imported vehicles and generate growth in the industry. It also comes after months of deliberating the practicality of implementing YVQC over the existing system of using parking recommendation letters to purchase a vehicle.
Agricultural produce can be exported to China through Myanmar- China border zones after the construction of economic zones in Myitkyina and Kan Paik Tee
After construction of economic zones in Myanmar-China border areas, agricultural produce from domestic market can be processed and exported to China through these zones, according to Minister for Commerce Dr. Than Myint. At present, Myitkyina economic development zone and Kan Paik Tee development zone are confirmed to be constructed. Myitkyina economic development zone will give priority on agricultural and livestock breeding sector, processing finished goods products from industrial sector, production of agricultural produce, production of advance construction material and small scale industrial materials, and transportation of goods. By undertaking the aforementioned, market resources from two regions can beneficially merge according to Minister for Commerce Dr. Than Myint. From Myanmar-China trade route, promotion of bilateral trade has been carried out through activities such as holding workshops on trade and trade exhibitions. After construction of border trade, agricultural produce from domestic markets can be re-packaging and export to China. By doing so, it will create job opportunities for local people and create more income said Dr. Than Myint.