ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Swiss form Symbiotics SA has made USD$ 2 million investment for a major microfinance fund to raise the latter’s debt capital and reach out to more clients in Myanmar

  A Geneva-based company has made a US$2 million investment for a major microfinance fund in Myanmar. Swiss firm Symbiotics SA on February 5 signed a term loan with Hayman Capital, a microfinance institution (MFI) under Singapore’s International Investment Company, to raise the latter’s debt capital and reach out to more clients in Myanmar. Hayman Capital is a Myanmar-focused deposit-taking MFI established in 2014. It currently has more than 71,000 active customers, the company said in a statement. The total assets are disclosed at $18.05 million and equity at $10.61 million, with a 0.41 percent of having a portfolio at risk. The firm said that it will be targeting 15,000 new clients within the niche market “at the lower level”, comprising of trading, production, agriculture and service categories and appropriate for a loan of K200,000 or less.
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  Vice President called on rice traders and farmers to cooperate and have confidence in the contract farming system

  Vice President U Henry Van Thio, the head of the Leading Committee for the Protection of Farmers Rights and Promotion of Interest, has called upon rice traders and farmers to control the quality and food safety standards for rice to ensure the ability for farmers to compete in markets, pledging that the Union Government would work to increase international rice quotas through government-to-government negotiations. Speaking at the Myanmar Rice Federation’s Annual General Assembly and Annual Meeting at the Mandalay Convention Centre yesterday, the Vice President said, “It is important for farmers, companies and businessmen to cooperate in the contract farming system, and have confidence, as the government is fulfilling the basic needs of farmers and the private sector, such as working through the Myanmar Rice Federation and NGOs, along with INGOs, which are cooperating with the government in helping farmers,” said U Henry Van Thio.
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  Myanmar’s parliament passed a controversial bill governing the gemstone sector by paving the way to restart licensing of mining companies after two year moratorium

  Myanmar’s parliament has passed a controversial bill governing the gemstone sector, paving the way to restart the licensing of mining companies after a two-year moratorium. Upon taking office in 2016, the National League for Democracy-led administration suspended issuing new or extension of existing gemstone licences pending a governance review intended to clean up the sector. The new law is aimed at eradicating illegal mining and extraction of gems, tackle illicit gemstone trade, and reduce the environmental impact of extraction activities. The legal text seen by Myanmar Times only covers medium, small and artisanal-scale mining and limits the duration of permits to three, two and one year respectively. Lawmakers in the Pyidaungsu Hluttaw said large-scale mining is excluded from the legislation because of its negative environmental consequences.
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  Central Bank of Myanmar (CBM) is taking the lead in implementation the new system of bank payments in Myanmar-China trade

  The Central Bank of Myanmar (CBM) has said it will allow traders to make payments through banks for conducting trading activities with China. The CBM will allow the payment facility beginning this year, and plans to grant permits to private banks to offer the facility. Under the new service, individual traders will be able to make transactions for the purchase and sale of legal goods through designated banks without having to open a bank account. U Bo Bo Nge, the Deputy Governor of the CBM, said the system will allow traders to use banks in Myanmar and China to pay for trade of goods that are legally recognized by both countries. The two nations have signed an agreement under which Chinese banks will exchange the yuan for other currencies when Myanmar banks have a large reserve of Chinese yuans, he said. The CBM has asked banks to submit proposals for permits for the payment system. The CBM is taking the lead in implementing the new system, he added.
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  With the funds support of German government via KfW Development Bank, Myanmar authorities will rehabilitate and extend the existing medium voltage distribution network in Southern Shan State

  Access to energy is one of the preconditions for economic growth and poverty reduction. The Government of Myanmar is giving high priority to the electrification of the country and just achieved to increase the national electrification rate to 44 percent as H.E. U Win Khaing, Union Minister from the Ministry of Electricity and Energy, mentioned in a recent speech. By the end of this financial year 50 percent of all Myanmar households should be connected to the grid. The Managing Director of Electricity Supply Enterprise within Ministry of Electricity and Energy, U Saw Win Maung, and Project Director Mr. Juergen Kampa from Consulectra Unternehmensberatung GmbH singed a consulting contract for “Rural Electrification Program – Grid Extension Component” to be funded by the German Government via KfW Development Bank.
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  Seven foreign business groups signed an open letter calling on foreign investors to invest in Myanmar

  The leaders of seven foreign business groups in Yangon have signed an open letter calling on investors abroad to put their money in Myanmar, stressing the critical role foreign direct investment (FDI) plays in the country’s transition. “Having been in isolation for so long, Myanmar now requires the broad regeneration of its economy to meet the demands of modern-day trade. As a result, there exists a significant range of private sector investment opportunities across every sector of the economy,” the letter said, citing the opportunities presented in the Myanmar Sustainable Development Plan (MSDP) which was announced by Nay Pyi Taw last year. It was co-signed by the British, Australian, American, European, Italian, German and French chambers of commerce in Myanmar. These groups together have more than 600 companies from over 30 countries.
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  Yangon Regional Government will build more oil terminal and storage facilities in Yangon to stabilize fuel prices

  Yangon Regional Government will extend and build more oil terminals and storage facilities in Yangon in order to stabilize the fuel prices, according to U Phyo Min Thein, Chief Minister of Yangon at YBS anniversary. “We need to build more oil storage facilities as well as terminals. By doing so, we can stabilize the prices of fuel by storing large amounts of oil,’’ he said. Four companies are operating storage facilities in Yangon and the Ministry of Commerce is also trying to keep the current fuel prices in check by acquiring the import prices of oil. In April last year, oil prices hit a record high, for example, diesel rose to K910 per liter. Now, a liter of diesel has dropped to K830 per liter, premium diesel is prices at K840 a liter, Octane 92 at K645 and Octane 95 at 735 per liter.
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  Thilawa Special Economic Zone (SEZ) will attract more potential investment as it was implemented systematically

  Thilawa Special Economic Zone will attract more potential investments as it was implemented systematically, said Thaung Tun, Union Minister for Investment and Foreign Economic Relations on February 5. The one stop service center (OSSC) in the zone is providing quality services and help gain trust from the investors, said the Union Minister. Moreover, they will implement the single window system to ease business and the respective ministries are drawing up standard rules and regulations, he said. He continued that the success of the economic zone, which was established in 2011, is viewed as “ideal”.
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  The thousands of people marched peacefully in Myitkyina against the Myintsone Dam, raising their voices in unison to the words

  MYITKYINA — Thousands of people marched peacefully in the Kachin State capital Myitkyina on Thursday against the Myitsone Dam, raising their voices in unison to the words, “Our rights! We don’t want it!” The two-hour march began at 9am at the Kachin National Manau Park and progressed through the commercial heart of the city. The crowd, estimated by participants at around 7,000, held handwritten posters and vinyl banners with slogans including “Dams on the Irrawaddy will cut off Burma’s Lifeblood,” “Let displaced villagers return home now,” and “Cancel all dams on the Irrawaddy and its tributaries.” Demonstrators comprised a broad spectrum of civil society, including students, elders, church leaders, activists, internally displaced people, and those relocated from their villages for the project.
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  China Railway Engineering Co., Ltd (CREC) proposed two versions of the potential railroad for Yangon (U Than Naing Oo, a member of the Yangon Region Hluttaw’s Transportation, Communications, Construction and Industry Committee)

  Representatives from China Railway Engineering Co Ltd (CREC) have met with the Yangon Region government to discuss the possibility of constructing of a new Yangon circular railroad, U Than Naing Oo, a member of the Yangon Region Hluttaw’s Transportation, Communications, Construction and Industry Committee told The Myanmar Times. “CREC proposed two versions of the potential railroad for consideration - one where it will be built on the existing circular railroad and another with an elevated track,” said U Than Naing Oo. Based on CREC’s proposal, building along the existing railroad would cost less even with 24 new stations in the plan. “However, to build 24 new train stations would require the acquisition of land, which could pose problems in Yangon. This means the more expensive option of the elevated railway along the route of the existing route could be more feasible,” said U Than Naing Oo.