ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  The volatility of currency exchange rate is crucial for trade and foreign investments in Myanmar

  Local currency depreciation is not a good sign, and the volatility of currency exchange rate is also crucial for trade and foreign investments, said Soe Min, Deputy-Governor of the Central Bank of Myanmar. Deputy-Governor Soe Min yesterday submitted the report on monetary policy and the monetary volatility for 2016-17 FY and 2018-19 FY, at the session of Union Parliament on September 9. The central bank fixed the official exchange rate at Ks five per US dollar before 2012. The price of a dollar at the outside market was around Ks 700 to Ks 800. In some years, the price of a dollar exceeded Ks 1,000. Since April 2, 2012, the Central Bank of Myanmar introduced Managed Float Exchange Rate Regime in order to fix the suitable rate for huge variances of exchange rates, he added. “The central bank introduced the foreign currency auction system in order to fix the reference rates similar to those in the market and control the foreign currency market. The central bank fixes the reference rate based on the exchange rate proposed for the auction and the exchange rates in the local and foreign markets. After that, the central bank shifted to the fixing of weighted average exchange rate calculated on the exchange amounts in the interbank markets. In addition, the central bank plans to implement the rule-based interventions framework in order to lessen the huge gap in foreign currency exchange rates,” he continued.
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  The biggest Vietnamese trade fair in Myanmar will be held in Yangon in December 2019

  The biggest annual Vietnamese goods fair in Myanmar will take place in Yangon from December 19 to 22. Held by the Viet Nam Trade Promotion Agency (VIETTRADE) since 2009, the event will feature about 100 stalls this year. On display will be processed foods, consumer products, equipment and machines, electric and electronic devices, medical and chemical products. Vietnamese enterprises taking part in the fair will have their space and advertising fees covered by the organiser.
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  The Central Bank of Myanmar (CBM) will consider further interest rates liberalization and allow private banks more freedom to set their own rates to be more competitive

  The Central Bank of Myanmar (CBM) will consider further liberalising interest rates and allow private banks more freedom to set their own rates to be more competitive, U Soe Min, deputy governor of the CBM told Parliament on Monday. The CBM will seek assistance and advice from the International Monetary Fund in doing so and observe what other countries are doing on this front. Currently, private banks must set their interest rates within the 8 percent deposit rate and 13pc borrowing rate stated by the CBM. The Central Bank rate is 10pc. U Soe Min stressed that the liberalisation process will be a slow and gradual one. “Some other countries took up to 20 years to liberalise interest rates. These rates cannot be reduced or raised immediately. Adjusting interest rates requires the country to have deep capital markets and this will take time to develop,” he said.
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  The Central Bank of Myanmar (CBM) implemented phase 2 of the Myanmar Financial Network System (CBM-NET) in Myanmar

  The Central Bank of Myanmar is now implementing phase 2 of the Myanmar Financial Network System (CBM-NET), which will include building the infrastructure necessary to support the system. CBM-NET is a mobile payment system that will cover the whole country, and it will include integrated services by local banks. “We are working on the system, which will allow us to connect the networks from local banks such as KBZ Pay and AYA Pay. We are hoping to complete the system and launch it later this year,” said Daw Myint Myint Kyi, Director General of the Central Bank of Myanmar. CBM-NET entered a design and planning phase in 2016. The CBM-NET guidebook states that CBM-NET is a computer network that transmits and processes transfer instructions. It links the Central Bank’s computer centre, its head office/branches, and the system’s Participants. The CBM-NET comprises two systems: a system for funds transfers and a system for the custody and settlement of Government and central bank securities.
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  The 41st International jetty at Yangon port including Thilawa port and international bulk terminal Thilawa (IBTT) was opened in Yangon to provide port services of international standard

  The 41st international jetty at Yangon port including Thilawa port and International Bulk Terminal Thilawa (IBTT) have been opened and port activities have started there, according to sources from the Ministry of Transport and Communications. Located on 20 of 61.77 acres of land at plot No.30 (30+32) (A) in Thilawa port area, Kyauktan Township, Yangon Region, the international jetty and IBTT were built by IBTT Co Ltd founded by Lluvia Ltd, a branch of Diamond Star Co Ltd, Kamigumi Co Ltd and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN). "It is heartening to see that IBTT was able to open a multi-purpose international jetty to provide port services of international standard. The success of IBTT will be a landmark of the friendship between Myanmar and Japan. Our ministry and Myanma Port Authority will be fully cooperating in line with the procedures so that ocean-going vessels can be moored at the IBTT jetty and we can well handle agricultural products such as wheat and crops there," said Deputy Minister for Transport and Communications Kyaw Myo.
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  The second board will be established to enable the public to trade shares of non-listed on the main board of the Yangon Stock Exchange (YSX)

  A second board will be established to enable the public to trade shares of companies that are not listed on the main board of the Yangon Stock Exchange (YSX), U Htay Chun, member of the Securities and Exchange Commission of Myanmar (SECM), said earlier this month. The move is expected to create an official platform for the trading of shares in public companies that do not meet the strict requirements to list on the YSX. “Rather than pursuing an over the counter (OTC) market, we are working on this plan under the YSX as a priority to make trading more legitimate,” said U Htay Chun. Although less stringent than listing on the YSX, public companies will also need to meet the requirements of the second board before their shares are open for trading, said U Htay Chun.
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  USAID and UKaid through DaNa Facility jointly organized a seminar on promoting microinsurance in Myanmar

  A Seminar on Promoting Microinsurance in Myanmar for Low Income People took place in Yangon, Monday. This program was jointly supported by USAID and UKaid through DaNa Facility. The seminar is to introduce core concepts related to microinsurance, learning from the experience of other countries, to generate enthusiasm around the possibilities and promise of microinsurance, to identify key actions required to improve the business environment for microinsurance and to update on the State’s Insurance Business Law and recent developments at Financial Regulatory Department (FRD).
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  Myanmar – Hong Kong Chamber of Commerce and Industry (MHKCCI) establish in Yangon to promote responsible investment in Myanmar and attract market entrants into the country

  Yangon Region Chief Minister U Phyo Min Thein welcomed the establishment of the Myanmar-Hong Kong Chamber of Commerce and Industry (MHKCCI) and urged more Hong Kong manufacturers to set up shop in the commercial capital. The MHKCCI was launched on September 3 to promote responsible investment in Myanmar and attract market entrants into the country. The event attracted more than 300 guests, including investment and foreign economic relations ministry permanent secretary U Aung Naing Oo, Yangon Mayor U Maung Maung Soe and Yangon region Kayin ethnic affairs minister Daw Naw Pann Thinzar Myo. “Last November, I personally received a group of investors from Hong Kong and I am pleased to learn that a few of them are already considering to expand their manufacturing in Yangon, near the New Yangon City,” the chief minister said during the launch.
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  The largest Malaysian firm, Berjaya Land Berhad, wins a tender for a proposed development project in Yangon

  Berjaya Land Berhad, a subsidiary of Berjaya Corporation Berhad, one of the largest conglomerates in Malaysia, has won a tender for a proposed development project in Yangon. Yangon Region Chief Minister U Phyo Min Thein announced this during the Malaysia-Myanmar Connect event held on August 30. In a filing with the Malaysian stock exchange Bursa Malaysia, Berjaya Land said that the contract awarded by the Yangon Region government involves a public housing and mixed-development project on 74.05 hectares of land located along Myanandar Road and Shweli Road, Dagon Seikkan Township, Yangon, with an estimated gross development value of approximately RM2.63 billion (K941.8 billion). “The development includes affordable housing, mid- to high-end condominiums, shop houses, retail spaces, farmer’s market, community hall, schools and infrastructure, to be built in three phases.
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  State Counsellor called on public not to panic over the current rumours related with the banking and finance industry

  Myanmar State Counsellor Aung San Suu Kyi conveyed a message through MPs from her party to people not to panic over the current rumours related with the banking and finance industry. She said these words at a meeting with MPs of the lower house and upper house from her National League for Democracy party from constituencies in Bago Region at President Home in Nay Pyi Taw on Thursday evening. President Win Myint was also present at this meeting. Lower House MP from Oktwin constituency in Bago Region Cho Cho who was present at this meeting said, “The State Counsellor conveyed the message to people through us. She said that people did not need to panic as these were just rumours and these were wrong facts. She said that what people worried about was impossible.” The Myanmar Central Bank issued a press statement on September 2 which assures people not to panic over banking industry news but the gold and monetary markets were hit severely with wild fluctuations because of the rumours.