ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Two Moken villages in Southern Myanmar where sea gypsies’ people lived will be implemented Community Based Tourism (CBT) areas in 2019

  Two Moken villages in Southern Myanmar, Don Nyaung Mai Village in Myeik, and Makyone Galat Village in Kawthaung, will form Community Based Tourism (CBT) areas in 2019. Moken are a group of people known as sea gypsies who traditionally lived on the Andaman Sea in Southern Myanmar in their hollowed out wooden boats. They thoroughly know the waters, and they allegedly warned other locals before the 2004 tsunami hit the area. Thanks to their warning, some of those people managed to escape the tsunami, according to local media outlets. Now, the Ministry of Hotels and Tourism is conducting feasibility studies in these two villages to implement the planed CBT. By doing so, local communities will have job opportunities and visitors can learn about Moken’s pearl hunting and fishing.
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  Dusit, one of the Thailand’s leading hotel and property development companies, signed a hotel management agreement with Rich Mandalay Group to manage Asai Hotel in Yangon

  Dusit, one of Thailand’s leading hotel and property development companies, has signed a hotel management agreement with Rich Mandalay Group to operate Asai Yankin, one of the first properties to be signed under Asai Hotels, Dusit’s new lifestyle brand, according to Travel News Asia. Located in Yankin Township in the northern central part of Yangon, approximately 25 minutes by car from Yangon International Airport, Asai Yankin will comprise 111 rooms, measuring between 15 and 22 sqm.
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  Korean business expert said that Myanmar government needs to eliminate all discrimination policies against foreign investments to revive growth

  While Korean investors are looking to expand in Myanmar’s manufacturing and infrastructure sectors, the economy can only grow if the government puts an end to discrimination against foreign investments, a Korean business leader said. In December 2018, the Myanmar Korean Chamber of Commerce and Industry (MKCCI) became the latest business group to formally open its doors in the country. Figures from the Directorate of Investment and Company Administration (DICA) at the end of November 2018 placed South Korea as the fifth-largest source of approved foreign investment in Myanmar, amounting to around US$254 million worth of foreign direct investments (FDI). Big players include CJ Feed, Lotte Group, Korea Land and Housing Corporation and GS Construction. The Myanmar Times talked to Lee Keun Jae, secretary general of MKCCI and senior adviser at Yulchon Law Firm, on bilateral trade and investment and what Korean investors would like to see from Myanmar’s reforms.
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  There are five business sectors that seem to be looking more interesting in 2019

  Businesses did not have a positive outlook on the Myanmar business sector last year with falling confidence and firms pulling out of Myanmar. However, with the arrival of a new year, things seem to be looking more optimistic for some sectors. Our reporters have interviewed insiders and experts from five business sectors on their views on what to expect in 2019. (Click the sub-heading to read more.)
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  Ministry of Planning and Finance will allow foreign insurance firms to invest in Myanmar

  Ministry of Planning and Finance will invite a submission for Expression of Interest (EOI) and Request for Proposal (RFP) from foreign insurers as well as local ones in January, according to the ministry’s announcement on January 2. This will be the first time since 2013 that the ministry allows private insurers in to the insurance sector, in 2013 they allowed 11 local private insurance companies. “The government has been talking about allowing foreign insurers for a long time. This is the first official announcement. We have nothing to complain about, the decision to allow foreign insurers is necessary for the improvement of the country. However, we are worried that local insurance companies with little experience will have a hard time competing with foreign insurance companies,’’ U Thaung Han, Secretary of Myanmar Insurance Association, told Myanmar Business Today.
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  Myanmar is at losing end with little power to deal with border trade issues (Dr. Maung Maung Lay, Vice Chair of UMFCCI)

  Myanmar must take steps to negotiate bilateral trade agreements with its neighbours to avoid volatility in border trade with China and India, as the consequent losses for locals can be huge. “There is currently no precise policy for border trade. Every country should have a policy to deal with trade disagreements and volatility. Right now, Myanmar is on the losing end with little power to deal with trade issues,” said Dr Maung Maung Lay, vice chair of the Union of Myanmar Federal Chamber of Commerce and Industry. “There is unfinished business and no discussion on how to prepare for future disagreements. Those in ministry do not have the capacity to handle border trade issues. We need better leadership on this front,” he added.
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  Negotiations to open Kyin San Kyawt border gate are underway to facilitate smoother trade between Myanmar and China

  Dr. Than Myint, the Union Minister for Commerce, attended a coordination meeting with officials from the People’s Republic of China at his ministry yesterday, where they discussed opening the Kyin San Kyawt border gate in order to facilitate smoother trade between Myanmar and China. During the meeting, the Union Minister said officially designating Kyin San Kyawt as a regular border gate will alleviate the congested traffic between the countries during the watermelon and musk melon season. He said the congested traffic is negatively affecting both growers in Myanmar and merchants in Yunnan Province.
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  The employment rate may increase to six percent of the population if European Union’s Generalised Scheme of Preferences (GSP) right remains

  Thanks to the EU’s Generalised scheme of preferences (GSP) right, Myanmar can create 0.6 per cent jobs. If the GSP right remains, the employment rate may increase to six per cent of the total population, said Aung Naing Oo, Director General of Directorate of Investment and Company Administration (DICA), at a talk titled “Democracy, Poverty and GSP” at the Union of Myanmar Federation of Chambers of Commerce and Industry (headquarters) in Yangon on January 5. There were 24 factories—22 garment factories which export garment to the EU, one factory (non-CMP industry) and one factory (CMP industry) before the EU’s reinstatement of GSP right to Myanmar in 2013. At the time, these factories created more than 23,000 jobs. After Myanmar got the GSP rights beyond 2013, the number of factories has increased to 305—202 garment factories, 26 factories (non-CMP) and 77 factories (non-CMP garment). These factories can create more than 300,000 jobs. In Myanmar, 0.6 per cent in 1,000 people has to enjoy the EU’s GSP rights.
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  Rakhine State Chief Minister offered regional government’s assistance to potential investors for the development of State

  Rakhine State Chief Minister U Nyi Pu has offered the regional government’s assistance to potential investors to Rakhine State as the government is inviting investment for the development of the State. The Chief Minister made the comment at the Rakhine State Investment Committee Meeting 1/2019 in Sittway yesterday. Speaking at the meeting, U Nyi Pu, in his capacity as the Chairman of the Investment Committee, (RSIC), said the Rakhine State Government is inviting investments for the development of the state and will have to oversight the operations and developments of the companies in accord with the agreements that are applicable to the State. He also stressed the importance of granting permits to further companies in accord with the rules and regulations.
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  Ministry of Electricity and Energy is planning to open up more tenders for its offshore, deep-water acreages to investors with better contract terms and conditions

  The oil and gas sector is looking exciting this year, with opportunities emerging from an international tender scheduled to take place early this year for the first time since 2014. In addition to onshore and offshore blocks, the tender is expected to include work in “Improved Petroleum Recovery” blocks at older oil fields in Myanmar. One senior official from the Ministry of Electricity and Energy (MOEE) told The Myanmar Times that the tender will be launched “as early as possible this year”. According to the MOEE official, the ministry is now revising the terms and conditions of production sharing contracts (PSC) that will be offered to the winning bidders in the tender exercise. Once the revised terms are ready, they will be submitted to the Cabinet and the President’s Office for approval.