Weekly Business News from Myanmar

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  There is increasing demand for low cost, safe, and regulated lodging in Yangon for migrant workers from other states and regions in Myanmar

  Demand for safe and regulated hostels in Yangon to house migrant workers from other states and regions in Myanmar is rising fast, according to U Nay Min Thu, managing director of iMyanmarHouse.com, which is the first website in the country to incorporate a search service for such lodgings. “About 60 percent of all migrants in Yangon live in rented hostels. In fact, the hostel sector accounts for 30pc of the whole rental market,” said U Nay Min Thu. Since the property portal first launched its hostel search service on August 6 up until August 20, some 300 hostel owners have placed rental advertisements on the website. These include home and apartment owners who have partitioned their properties into hostels or dormitories for rent. During the same period, the owners received more than 10,000 enquiries about the rooms available for rent. In Yangon, it is common for such rooms to consist of a small space just enough for a single mattress. These are rented out for as little as K20,000 per month. Bigger quarters can go for up to K60,000 per month.
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  For trade balance to be achieved, Vice President, U Myint Swe called for joint efforts with local entrepreneurs to implement effective export promotion and import regulation

  For trade balance to be achieved, Vice President, U Myint Swe called for joint efforts with local entrepreneurs to implement effective export promotion and import regulation
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  Amata Holding Public Company prepares to list on the Yangon Stock Exchange (YSX) to strengthen its investment in the tourism industry which has great potential for growth

  U Win Aung, CEO of Amata Holding Public Company, is preparing to list his company on the Yangon Stock Exchange (YSX) to take full advantage of the upcoming opportunities he believes lie ahead for the Myanmar tourism industry. “There are actually many multi-national companies looking to invest in tourism as the industry holds great potential for growth. But it is still a very immature industry so foreign investors are all monitoring the progress on the sidelines until they are ready to enter,” U Win Aung told The Myanmar Times in an interview. U Win Aung, CEO of Amata Holding Public Company, is preparing to list his company on the Yangon Stock Exchange (YSX) to take full advantage of the upcoming opportunities he believes lie ahead for the Myanmar tourism industry. “There are actually many multi-national companies looking to invest in tourism as the industry holds great potential for growth. But it is still a very immature industry so foreign investors are all monitoring the progress on the sidelines until they are ready to enter,” U Win Aung told The Myanmar Times in an interview.
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  The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) submitted the twelve point suggestion to the private sector development committee in order to control the unstable currency exchange rate

  Ye Min Aung, Vice President of the Union of Myanmar Federation of Chambers of Commerce and Industry submitted a 12-point suggestion to the private sector development committee led by Vice-President Myint Swe. The move aims to deal with the instability of currency exchange rates systematically by the Union government and the Central Bank of Myanmar. He suggested the government should control quota, tariff rate quota, minimum access, standard, specifications, tax and customs system for imported goods. His suggestion also includes the expansion of trade financing for overseas banks, the implementation of bilateral currency swap schemes with major trading partners such as the use of Chinese Yuan and Thai Baht for trading with those countries, the development of interbank currency market under the supervision of the central bank and the formation of working groups for the rapid establishment of import-export public bank with the inclusion of local and foreign shareholders.
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  Internal Revenue Department (IRD) will negotiate with the Customs Department for imported medical devices to be exempt from commercial tax

  Import of medical devices would be exempted from commercial tax collected by the Custom Department at ports, according to the Internal Revenue Department. At the meeting over tax issues between Myanmar Pharmaceutical and Medical Equipment Entrepreneurs’ Association (MPMEEA) at the Union of Myanmar Federation of Chambers of Commerce and Industry in Yangon recently, U Min Htut, Director-General of the Internal Revenue Department, said his department will negotiate with the Custom Department to give the commercial tax exemption to import medical devices. The Director-General also explained that medical devises described in the 2018 Union Tax Law’s Section 14 (a) Table 64 and 65 are exempted from paying commercial tax. “If MPAMEEA has paid the commercial tax for those medical devices beginning from 1st April 2018, you can apply for a tax refund,” said U Min Htut.
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  With the support of the World Bank, Internal Revenue Department (IRD) will launch an Integrated Tax Administration System (ITAS) by next year to serve as a platform for administration matters

  The Internal Revenue Department (IRD) under Ministry of Planning and Finance is aiming to launch an Integrated Tax Administration System (ITAS) by next year, U Min Htut, Director General of the IRD, told The Myanmar Times. The ITAS will serve as a platform for administrative matter such as registration and payment processing for tax payers and will be implemented with the help of the World Bank. The move is part of a wider attempt by the authorities to encourage more residents to pay their taxes responsibly and help beef up the government’s coffers at a time when the budget deficit has widened to K4.9 trillion, the most in seven years, and public spending isn’t expected to slow. New technology, such as the ITAS and e-payment services, will be the key feature of the taxation reform process. The improvements will make it more convenient and less of a hassle for tax payers to pay their taxes. “By enabling tax payers to conduct all their tax affairs online, we can eliminate the need for them to physically come to the tax office and encourage them to comply with tax rates and pay on time, U Min Htut said.
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  Government authorities will start checking the quality of fuel and lubricating oils from September 2018 in order to distribute the right quality in the market

  The government is planning to check the quality of fuel and lubricating oils every time they are imported, starting from September and will only be allowed to distribute in the market if only they have the right quality, according to Ministry of Electricity and Energy. Myanma Petroleum Product Enterprise (MPPE) under the ministry only took the sample the first time to check the quality of oil and lubricants. The MPPE will be checked the quality of oil and lubricants every time now as long as they are being imported starting from September. It said the plan for quality control is a bid to gain more trust from the customers in the market. The import of petroleum products are US$1.306 billion from April 1 to August 3, according to Ministry of Commerce. Fuel prices had increased to about K100 per liter in domestic market amidst the increase of international fuel prices and U.S dollar exchange rate in May, according to Myanmar Petroleum Trade Association.
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  An industrial zone to be developed by the Yangon Regional Government and Myanmar Wooree Co., a South Korean firm, on the West bank of the Yangon River could stimulate long- delay construction of the Dala Bridge

  An industrial zone to be developed by the Yangon regional government and Myanmar Wooree Co, a South Korean firm, at the west bank of the Yangon River could be the impetus needed for construction of the much-touted Dala Bridge to commence. Once the bridge, which will connect downtown Yangon to the western side of town, is constructed, the new industrial zone is expected to become a hotspot for investments. Now, plans are being made so that the Dala Bridge, also known as the Myanmar-Korea Friendship Bridge, will be operational by 2020-21, said U Phyo Min Thein, Yangon Region Chief Minister. The Yangon region government and Myanmar Wooree Co on August 11 signed a Memorandum of Understanding to construct an industrial zone near where the planned bridge connects to Dala township. There are also plans to construct industrial zones in Kawhmu and Kon Chan Kone, which are part of the 11 new industrial zones proposed to the Hluttaw for implementation in Yangon region. The zones are both also located at the west bank of Yangon and will benefit from the bride.
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  USAID organized the forum on better economic reporting (Availability, Access and Quality of Data Statistics) on 22 August 2018 at Mingalar Thiri Hotel, Nay Pyi Taw

  The Forum on Better Economic Reporting (Availability, Access and Quality of Data and Statistics) facilitated by USAID, was held in Mingalar Thiri Hotel in Nay Pyi Taw yesterday morning. Speaking at the forum, Deputy Minister for Information U Aung Hla Tun said data and statistics are important for news, journalists represent the fourth pillar coordinating the public and the three pillars of government, besides disseminating information among the people, and economic reports are important for those involved in national policies, entrepreneurs and for every citizen. The deputy minister said the Ministry of Information has urged all relevant ministries and departments to publicize available information in a timely manner. The Right to Information Law is being drafted, creating better environment for journalists in newsgathering once it is enacted, he said. He also urged the forum to openly discuss current issues. The deputy minister said the country is undergoing democratic reforms and the new Foreign Investment Law was recently enacted, making it more important than ever to relay timely, accurate and reliable data and statistics to foreign businesses interested in entering the country. He added that the media presentation of a country is the primary factor on which international governments, organizations and entrepreneurs look to when making decisions relating to the said country.
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  Myanmar and Japan will sign a MOU to build Aung San National Green Park in Yangon which will be an international-standard mixed development project near the Kyaikkasan Stadium in Tamwe Township

  Japan and Myanmar will sign and an MOU to develop and international-standard mixed development project near the Kyaikkasan Stadium in Tamwe township, Yangon, Daw Khin San Hlaing, member of the National Economic Co-ordination Committee, told The Myanmar Times. On August 19, the government met with residents of Kyaikkasan to explain the project, which will include international-standard sports and recreational facilities as well as a business complex. The new Aung San National Green Park will involve Japan investing in the sports and recreational area, while Myanmar will focus on building the business complex, which will be developed over one third of the 100 acre Kyaikkasan sports area. The government will lease the land at Kyaikkasan for US410 million per year for the business complex. Meanwhile, Japan will pay Myanmar $100 million in national development funds as well as an additional $100 million for the building materials and infrastructure needed for the sports area, according to the National Economic Co-ordination Committee.