Weekly Business News from Myanmar

More electricity will be generated with new power plants to ensure consistent power supply next summer
More electricity will be generated by new power plants while other plans are underway to reduce power blackouts in Yangon and Mandalay during the coming summer months between March and May, according to Yangon Region Electricity, Industry and Transport minister Daw Nilar Kyaw. An additional 439 megawatts of electricity will be generated in 2018, Daw Nilar Kyaw said at the Yangon Region Hluttaw. This includes 106 MW from the Thaketa power plant in Yangon and 225 MW from the Myingyan power plant in Mandalay.
Vietnam based low-cost airline, Vietjet organized a cabin crew recruitment day in Yangon: it is the first time Vietjet has recruited cabin crew in Myanmar
Vietnam based low-cost carrier Vietjet announced on No¬vember 10th that a cabin crew recruitment day will take place in Yangon, this shows commitment of Vietjet in career develop-ment opportunities for Myanmar citizens. To keep pace with the rapid development and expansion of its domes¬tic and international net-works, Vietjet; the fastest growing airline in Viet¬nam in currently seeking dynamic and customer focused candidates from Myanmar to be qualified as the airline’s friendly and professional cabin crews. Interviews will be held at Myanmar Plaza in Yan¬gon on November 18th.
Although the price of rubber has fallen in the global market, international demand for rubber produced in Myanmar is on the rise
The price of rubber has fallen below its cost of production in major exporting countries. Yet, international demand for rubber produced in Myanmar has risen and insiders reckon things could remain upbeat for a while more. “Myanmar rubber production will certainly increase on the back of rising international consumption and demand,” U Myo Thant, vice-chair at the Myanmar Rubber Planters and Producers Association (MRPPA), told The Myanmar Times. The emerging trend represents a rare opportunity for Myanmar rubber producers to secure a foothold in the global market after lagging for years behind the world’s three major rubber producing countries: neighbouring Thailand as well as Malaysia and Indonesia.
Tech experts recommend the Myanmar government to embrace and keep up with the pace of digital technology to develop and expand the country’s economy
To develop and expand, Myanmar must embrace and keep up with the pace at digital technology is changing the economy and the way companies do business around the world, tech experts at the Digital Transformation Summit said. The summit was jointly held by the Myanmar Federation of Chamber of Commerce and Industries (UMFCCI) and US Information and Communications Technology (ICT) Council on November 8 in Yangon. It was attended by executives from some of the world’s largest Internet and tech firms, including Google, Microsoft, Visa, VM Ware and Oracle, who all stressed the importance of adopting digital technologies such as e-commerce platforms and social media among local businesses. “According to a global survey estimate, 40 percent of businesses will not survive if they do not evolve and adopt digital technology to keep up with disruptive competitors.
After three years of negotiations, ASEAN and Hong Kong signed a free trade agreement (FTA) and investment pact on the sidelines of the 31st ASEAN Summit in Manila
ASEAN and Hong Kong signed a free trade agreement (FTA) and a related investment agreement on the sidelines of the 31st ASEAN Summit in Manila yesterday, after three years of negotiations. The agreements will bring about tariff reduction for the trade in goods and services, better market access, legal security, a dispute settlement mechanism as well as investment protection to Myanmar and the rest of ASEAN. Apart from trade and investment, the deal comprises of a chapter on Economic and Technical Cooperation (ECOTECH). Both parties, including Myanmar, have agreed to conduct ECOTECH activities in five areas: customs cooperation, professional services, small and medium-sized enterprises (SME) cooperation, trade facilitation and logistics as well as e-commerce cooperation.
As part of the government's efforts to increase tax revenue, online tax payment systems will be available starting from February 2018
As a part of the National League for Democracy (NLD)-led government’s efforts to increase tax revenue, the Ministry of Planning and Finance will take its first step into us¬ing a technology based tax collection system. The Myanmar Payment Union (MPU) will be utilized to make online payments starting in February 2018, U Maung Maung Win, Deputy Minister of the Ministry of Planning and Finance said at the Pyithu Hluttaw meeting held on September 30. The Myanmar Payment Union was organized by state owned and pri¬vate banks in 2011 with the purpose of providing ATM and POS switching services among the vari-ous banks in Myanmar. MPU cards have been in use since September 14, 2012. As a result, all bank card holders can with¬drawal and check their balance and withdraw their funds at any MPU ATM.
Government plans to privatize unprofitable state-run factories since most state owned factories are operating at a loss
Most state-owned factories are not making profit and are operating at loss, while eating up state budget. The government is planning to privatize the unprofitable state-run factories, U Kyaw Win, Union Minister of the Ministry of Planning and Finance (MOPF), said at a meeting of UMFCCI. In lieu of selling the factories, the Ministry of Planning and Finance will hold discussions with the Ministry of Industry to privatize unprofitable state-run factories as soon as possible, said U Kyaw Win at the regular meet¬ing of Vice President No-1 and the business leaders held at UMFCCI on Octo¬ber 27. “To accelerate minis¬terial activities, we are planing for short, me¬dium, and long-term sce-narios on how to handle this situation. Currently, we are working on the short-term plan,” the Per¬manent Secretary of Min¬istry of Industry, U Ko Ko Lwin, said.
Stock trading of four companies listed on the Yangon Stock Exchange (YSX) reached an all-time low in October 2017
Stock trading of four companies listed on the Yangon Stock Exchange (YSX) reached all-time low of ks1 billion in October since its establishment, according to monthly data released by YSX yesterday.
DICA is in the process of improving the coverage and quality of its pilot survey project on FDI statistics to meet international standards
Myanmar Direc¬torate of In¬vestment and Company Administration (DICA) is currently in the process of improving the coverage and quality of its Foreign Direct Invest¬ment Statistics (FDI) with the goal of conforming to International stand¬ards, according to an an-nouncement on October 23. Quality of statistics is essential in guiding Myanmar’s economic-development and policy decisions. At present, My¬anmar FDI statistics have already been submitted by Myanmar Investment Commission (MIC), the statement, said. In this regard, DICA plans to conduct a pilot survey on Foreign Direct Investment (FDI) in My¬anmar for the financial years of 2016-2017. This survey is going to be used as the main data source in compiling Myanmar’s FDI statistics, which sum¬marizes direct investment transactions and stock po¬sitions by non-residents in Myanmar. The project receives technical assis¬tance from EU- ASEAN COMPASS Project and International Monetary Fund (IMF).
In order to encourage inclusiveness and accountability, efforts to boost corporate transparency in Myanmar accelerates
An annual study on business transparency of Myanmar companies would be widened next year to encourage inclusiveness and accountability in a larger context, according to Myanmar Centre for Responsible Business, a Yangon-based initiative funded by six European nations. MCRB director Vicky Bowman said that the assessment of companies’ websites would be doubled to 200 firms to be more inclusive. She said the report on Transparency in Myanmar enterprises known as Pwint Thit Sa would encourage companies to transparently publish their business information on their websites. “Transparency of companies listed on Yangon Stock exchange, public companies, other influential companies including large taxpayers and medium- and large- sized companies which have volunteered to be benchmarked would be studied through their publicised information,” she said.