ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Ministry of Commerce will grant loans to Myanmar Rice Federation (MRF) for the purchasing of rice

  The Ministry of Commerce is planning to grant loans totaling K15 billion to the Myanmar Rice Federation (MRF). With these funds, the MRF will purchase unhusked rice; currently, the market price is lower than the floor rates set by the government and the MRF. Currently, the local rice market is experiencing sluggish demand, which has lowered prices. With the loan, which is set for terms of 120 days, the Myanmar Rice Federation will attempt to both reduce financial losses for farmers and stabilize the market price of rice. According to U Aung Htoo, Deputy Minister of the Ministry of Commerce: “Despite lower rice prices, we can’t buy the unhusked rice at the price floor we set. The Myanmar Rice Federation bought the unhusked rice from farmers at a price lower than the floor rate. Now, they have requested the loan so that they can buy more rice.”
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  The price of cement is rising in Yangon due to the shortage of supply from Thailand

  Cement price is rising in Yangon due to lower imports from Thailand, according to local shops selling cement, brick, sand, and stone. The construction materials shops are selling cement imported chiefly from Thailand. The price of cement has been on the rise as there have been lower supplies of cement from the neighboring country because of poor weather conditions. “The price of cement usually increases by K100 or K200 whenever there is a shortage of supply from Thailand. Currently, the cement price has increased slightly,” said a local cement, brick, sand, and stone shop owner.
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  Maha Bawga Finance Co., Ltd is revealed plans to be listed on the Yangon Stock Exchange (YSX)

  Maha Bawga Finance Co is in the process of changing its status to a public company in preparation for a listing on the Yangon Stock Exchange (YSX), Daw Pan Pa Pa, financial controller to the company, told The Myanmar Times. Maha Bawga is a non-bank financial institution licensed by the Central Bank of Myanmar (CBM). The company is changing its status as it plans to expand its loan services in 2020, Daw Pan Pa Pa said. “The company plans to expand its services and reach with more branches to be opened. With this in mind, we plan to convert to a public firm and are also preparing to be listed on the YSX to gain better access to funding and investors,” she said.
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  World Bank report projected the Myanmar’s economy outlook positive pending reform acceleration

  Despite a global economic slowdown, the latest World Bank report projects a positive outlook for Myanmar’s economy due to accelerated reform implementation, infrastructure spending and investment in and liberalization of sectors such as wholesale and retail, insurance and banking. The World Bank’s Myanmar Economic Monitor Building Reform Momentum report, launched on Tuesday, said Myanmar’s economic growth is expected to rise to 6.5 percent in the 2018-19 fiscal year which starts October 1, thanks to strong performances by the industrial and services sectors. This is compared to 6.4 percent during the Transition Period of April 2018 to September 2018. Industrial activities are expected to see a revival, supported by strong performance in the garment and construction sectors. Services will remain the key driver of growth with momentum-building in the wholesale and retail sectors supported by reforms. The report also projects economic growth will accelerate to 6.7 percent by the 2020-21 fiscal year. Myanmar experienced a chronic exchange rate instability in the last fiscal year that harmed economic growth and widened inflation. However, the report said Myanmar’s economy is slowly picking up speed and regaining stability, supported by subsiding price and exchange rate volatility this year.
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  International Finance Corporation (IFC) becomes the first international investor in a commercial bank in Myanmar

  Yoma Bank has become Myanmar’s first commercial lender with a foreign stakeholder following a decision by the International Finance Corporation (IFC) to convert a US$5 million loan into a five percent equity shareholding. The IFC, the investment arm of the World Bank Group, provided the convertible loan package to Yoma Bank in 2014 to help it scale up lending to small and medium-sized enterprises (SMEs). So far the institution has helped Yoma provide over 7000 loans worth around US$800 million to SMEs in the country and increase the bank’s outreach from 52 branches to 80. It also issued a $7 million convertible loan to Myanmar Oriental Bank (MOB) in 2017 for the same purposes. The move will boost confidence among other foreign banks interested in taking a stake in Myanmar banks, according to business information firm Frontier Myanmar Research (FMR).
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  Union Minister of Hotels and Tourism called for community-based tourism development in Shan State

  Union Minister for Hotels and Tourism and Chairman of the Tourism Committee, U Ohn Maung, attended meeting (2/2019) of the Shan State Border Area Tourism Committee (SSBATC) held at the State cabinet office on 15 June. The Union Minister first delivered a speech where he said his ministry has set the Look-East policy and Look-West policy to attract foreign tourists. He said they have coordinated with related ministries to relax some visa restrictions. He said the ministry has set up a digital marketing taskforce and is increasing its cyber activities, adding that he wants the states and regions to follow suit. The Union Minister said they have invited GTMH Telecom company to explain technical assistance for developing the tourism sector in Nyaungshwe. He said there is a need to supervise hotels and tourism businesses in Shan State so that they may operate in accordance with the law.
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  In partnering with Grab, Myanma Insurance will launch the group Personal Accident Insurance (PAI) schemes which will coverage for drivers and passengers in the case of an accident

  Grab has partnered with state-owned Myanma Insurance to launch a group Personal Accident Insurance (PAI) scheme which covers its drivers and passengers in the case of an accident during a GrabTaxi, GrabThoneBane or GrabBike ride. It is the first ride hailing company to procure a group PAI policy in Myanmar, covering four-wheel, three-wheel and two-wheel motorbike taxis in Yangon, Mandalay and Bagan. Now, every Grab in Myanmar is insured, in line with its commitment towards achieving zero preventable incidents on its platform. Grab’s group PAI policy offers coverage for drivers and passengers in the event of accidental death, permanent dismemberment and bodily injuries as a result of accidents. This coverage includes total personal accident benefits for the driver or passenger of up to US$7500 per person, subject to aggregate limits including US$10 million per accident in Myanmar. Each incident will be evaluated individually by Myanma Insurance.
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  Economic growth of Myanmar predicted to rise from 6.4 percent to 6.5 percent in this transition period

  The economic growth of Myanmar is predicted to rise to 6.5% in 2018/19 from 6.4% in the transition period, according to a semi-annual report on “Myanmar Economic Monitor: Building Reform Momentum” launched by the World Bank on Tuesday. The report focuses on recent economy developments, prospects and policy priorities in Myanmar with the use of available data reported by the government of Myanmar and additional information collected as part of the World Bank Group’s regular economic monitoring and policy dialogue. Manufacturing and services sectors show strong performance for economic growth. The service sector is expected to grow well with the growth to 8.3% in 2018/19 compared to 8.2% in 2017/18 because of increased activity in the retail and wholesale sector. The economic outlook remains positive with the growth expected to reach 6.7% by 2020/21 due to easen trade restrictions, launch of mega infrastructure projects and opened-up financial sector to bigger foreign competitions.
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  Myanmar will invite local investors to submit the Expression of Interest (EOI) for Economic Zones along China-Myanmar border areas

  Myanmar will invite local investors to submit Expression of Interest (EOI) for Myanmar-China Economic Cooperation Zones at the Myanmar-China border areas, according to U Aung Htoo, Deputy Minister of the Ministry of Commerce. The Ministry has approved the rules and regulations for the projects, only local inves-tors are eligible to submit an EOI. “When the zones come into exist, illegal trade will disappear itself,” U Aung Htoo add-ed. The zones will be implemented in Kan Paite Tee in Kachin State, Muse and Chin Shwe Haw in Shan State, all of which are located at the Myanmar-China border. The government hopes that the zones will boost both local and foreign investments in the region, and create more jobs for local people while at the same time increasing trade between the two countries and productivity of small and medium enterprises.
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  Ministry of Commerce has drafted the regulations to relax the import of foreign alcohol ban

  The Ministry of Commerce has drafted regulations that would allow the import of foreign alcohol, a senior official says, and in the process overturn a decades-old ban that has encouraged rampant smuggling. The rules have come out of a review that the President’s Office initiated earlier this year at a meeting of the National Economic Coordination Committee, said U Khin Maung Lwin, an assistant secretary in the office of the minister for commerce. The Ministry of Commerce was put in charge of the review and has formed a committee led by the deputy minister that also includes the permanent secretaries of other ministries. The committee is examining not only the import but also the manufacture and distribution of alcohol, as well as excise rules, said Khin Maung Lwin.