ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar Rice Federation (MRF) invited investors to submit the proposal for building rice drying machines and storage facilities

  The Myanmar Rice Federation (MRF) has invited investors, especially local farmers, to submit proposals for building rice drying machines and storage facilities. The overall project will require about K170 million in investments. The project will be implemented as a joint project between small and medium enterprises and local farmers in the areas where the rice is mainly grown. The MRF said the rice drying machines and small-scale rice storage facilities will dry harvested rice and help reduce losses from quality degradation during the post-harvest season. There needs to be five farmers investing per project. They will only be required to invest one-third of the cost, and the federation will help acquire other financial assistance with low interest from the government and other partner organizations.
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  Ministry of Construction, Korea Land and Housing Corporation and Global Sar-A Co Ltd is setting up a joint venture company to develop an industrial zone in Hlegu Township, Yangon

  Myanmar’s Ministry of Construction, Korea Land and Housing Corporation and Global Sae-A Co Ltd is setting up a joint venture company to develop an industrial zone in Hlegu township north of Yangon. An agreement was signed on August 7 for the industrial zone, to be known as the Korea Myanmar Industrial Complex (KMIC), which would be built on 555 acres of land belonging to NyaungHna Pin training school. Minister of Construction U Han Zaw said the KMIC would not only create between 50,000 and 100,000 jobs but also enhance the country’s manufacturing base, exports, training of talent and support socio-economic development.
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  Myanmar has a total debt of Ks 38,117 billion including an external debt of $ 9.89 billion till 31 March of this year

  Till March 31 of this year, Myanmar has a total debt of Ks 38,117 billion including an external debt of 9.89 billion US dollars, said Deputy Minister for Planning and Finance Maung Maung Win. Myanmar had Ks9,938 billion in domestic debt and Ks6,335 billion in external debt, in 2011-2012 fiscal year, Ks 10,824 billion in domestic debt and Ks 7,301 billion in external debt in 2012-2013 FY, Ks 12,014 billion in domestic debt and Ks9,561 billion in external debt in 2013-2014 FY, Ks 12,487 billion in domestic debt and Ks 9,545 billion in external debt in 2014-2015 FY and Ks 15,724 billion in domestic debt and Ks 12,246 billion in external debt in 2015-2016 FY.
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  Local insurance industry’s change of plans could be a setback for insurance market

  The local insurance industry may have been dealt a setback after negotiations between several local and foreign insurers were reported to have broken down. According to a report by Nikkei, which cited insiders, local insurers decided to pull out of talks with Thailand’s Muang Thai Insurance and Muang Thai Life Assurance, and South Korea’s DB Insurance, after learning that they were only allowed to set up the joint ventures by buying newly issued shares of local insurers instead of existing shares, as previously communicated. The Nikkei cited an unnamed industry insider who said that the local insurers were more reluctant about setting up the partnerships after learning about the new ruling, which was made known at the last minute by the government. According to the Nikkei, up until April, the understanding was that local insurers could sell existing shares to form these partnerships.
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  Pyithu Hluttaw agrees to support research and extended production system in developing the quantity and quality of agriculture and livestock products for foreign markets

  The 8th day meeting of Pyithu Hluttaw yesterday approved a proposal on agricultural and livestock sector, discussed farmland management, dispute on land boundary and erection of telecom posts. The meeting also approved the National Record and Archives Bill. Research and Extended production U Sein Win, MP of Maubin constituency, urged the Union government to support research and extended production system in developing the quantity and quality of agricultural and livestock products for foreign markets. The proposal was supported by U Min Thine, MP of Bogalay constituency, saying that the farmers are facing with deficiencies in the markets, severe weather conditions, high labour wages, less capital and lack of technologies in production of high quality products. U Hla Kyaw, Deputy Minister for Agriculture, Livestock and Irrigation, affirmed the proposal, saying that his ministry was collaborating with the relevant ministries, private sector, civil societies and development partners to narrow the gap in this sector even compared with neighbouring countries. As no one filed objection against the proposal, the Speaker of Pyithu Hluttaw approved it.
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  Yakult Honsha Myanmar Company Limited introduces its locally produced fermented dairy products

  Yakult Myanmar Company Limited is a $47 million investment by a Japanese company, and has introduced its locally produced fermented dairy products on July 31. Yakult is a probiotic drink intended to improve health. Probiotics are live microorganisms intended to provide health benefits when consumed. Live probiotic cultures are part of fermented dairy products, other fermented foods, and probiotic-fortified foods. Mr. Hideki Kawasaki, Managing Director of Yakult Myanmar Company Limited, claimed that a single bottle of Yakult, contains over 8 billion lactic acid bacteria which help improve bowel movements for people who tend to be constipated, and helps to maintain a healthy population of gut flora. “This product is not a medicine. It is a product that improves bowel movements. We do not use coloring products or chemical preservatives,” he added.
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  The Inland Revenue Department (IRD) collected higher revenue, K 4.9 trillion in revenue across five categories of taxes from October 2018 to June 2019

  The Inland Revenue Department (IRD) has collected K4.9 trillion in revenue across five categories of taxes from October 2018 to June 2019. According to the IRD, the amount collected was more than the amount collected in the corresponding period of last year. Four-fifths of the amount collected this year came from income tax, commercial tax, special commodities tax, court fees and stamp duties as well as the Aung Bar Lay Lottery tax. An IRD list showed that revenue from income tax was K243 billion, special commodities tax collection came in at K42 billion, the lottery tax contributed K31 billion, commercial tax contributed K16 billion while court fees and stamp duties contributed K5.3 billion compared to the corresponding period of last year. All categories except court fees and stamp duties was higher than the corresponding period of last year.
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  The Central Bank of Myanmar (CBM) disallows the use of prepaid cards in the local currency which is a step backwards for cashless transactions

  An announcement from the Central Bank of Myanmar (CBM) disallowing the use of prepaid cards in the local currency is a step backwards for cashless transactions, industry observers said. The CBM, which made the announcement on July 25, said prepaid cards with a limit of US$5,000 issued by local banks in partnership with foreign financial services firms can only be used as a payment option by Myanmar nationals on trips abroad as well as foreigners in the country. No transactions can be made in the kyat equivalent using these cards by Myanmar nationals in the country. A manager with a local private bank told The Myanmar Times that the instruction not allowing the use of these cards for transactions in the local currency “is a step backwards for cashless transactions and also e-commerce”.
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  Thilawa Special Economic Zone (SEZ) is in need of international standard jetties and logistics services to transform the zone into a multi modal logistics hub

  For the extensive operations of factories, Thilawa Special Economic Zone is in need of international-standard jetties and logistics services, said Win Aung, chair of Myanmar Thilawa Special Economic Zone Holdings Public Co., Ltd (MTSH). According to the MTSH’s annual report for 2018-2019 fiscal year, the MTSH is conducting preliminary surveys to transform the zone into a multi-modal logistic hub. On December 12, 2018, the operation of the jetty built by Thilawa Multipurpose International Terminal Co., Ltd (TMIT) with Japanese ODA loan, started. Toyota Myanmar Co., Ltd has invested 52.6 million US dollars in the automobile industry and will manufacture 2,500 Toyota Hilux cars as from 2021. It can create an economic chain by attracting the companies which manufacture automobile parts used in the production of Toyota cars, he continued.
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  “A Bank” will provide K 10-300 million loans to local small and medium enterprises aiming to help the development of SMEs sector

  Ayeyawaddy Farmers Development Bank widely known as ‘A Bank’, will provide K10-300 million in loans to small and medium enterprises, the loans will be given with the aim of helping them improve, according to the Department of Industrial Supervision and Inspection. The loans include operating loans, fixed asset loans, invoice financing, green investment loans, and agricultural contract loans, according to A Bank. The terms of the loan are three years with 13 percent annual interest rates in addition to repayment of 3 percent of the service fees every month. The loan payments must be made every month or every three months. To obtain operating loans and fixed asset loans, customers must provide documents of ownership for assets such as buildings, cars, and jewelry. These must be provided in addition to other paperwork such as bank statements for the last year, personal information, company business plan, copy of membership card, and tax clearance form.