ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  The conflict in Rakhine State has slowed down foreign investment: to address this issue, UMFCCI recommends promoting economic growth in Rakhine

  Despite rich resources and good geographical location, Rakhine State has many challenges to overcome if it is to attract foreign investments, people in the business community say. “Foreign investments have slowed due to conflict in the state. The economy of Rakhine needs to be promoted first and only when it is conducive, will problems such as international pressure, inclusive development and conflict be reduced,” said U Tun Tun Naing, member of the Union of Myanmar Federation of Chambers of Commerce and Industries (UMFCCI). “The turmoil in Rakhine can be partly attributed to low levels of education in the state, so education must be promoted. With no job opportunities, there is no income .If livelihoods could be improved, there would be less conflict,” he said. “As a whole, Myanmar’s economy rests on the resolution of problems in Rakhine. If Rakhine is stable, and peaceful, then other countries will invest in other part of the country, so, we have to focus more on Rakhine,” he said.
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  Thai Government encouraged neighbouring countries to unite around SEZs and collaborate with the member nations to strengthen the regional economy in a sustainable manner

  The Thai government is encouraging four neighbouring countries to seize opportunities from the Asean single market and collaborate with all 10 member nations to build up the regional economy in a sustainable manner. With the new opportunities, special economic zones (SEZ) represent a key project, connecting Thailand and nearby Cambodia, Laos, Myanmar and Vietnam, all countries with strong growth potential. Industry Minister Uttama Savanayana said Asean countries have roughly 1,000 SEZs, representing 20pc of 4,500 SEZs globally in 270 cities. He said the SEZ scheme will contribute 20pc of the GDP in each country and increase worker income by an average of 8pc a year.
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  Get All Myanmar Co., a locally owned enterprise began their commercial operations in February 2018 and are confident of high rapid growth to expand overseas in few years (U Nyein Chan Soe Win, the firm’s Co-Founder and Chief Executive)

  WITH online to offline (O2O) platforms on the rise across Asia, Get All Myanmar Co, a locally owned enterprise that began commercial operations in February this year, is confident that it will be able to expand overseas in a few years, according to Nyein Chan Soe Win, the firm’s co-founder and chief executive. “We have created an ecosystem in which people from all walks of life can be easily involved. We believe our services will reach out to all parts of Myanmar by 2030, and thereby will expand overseas as a regional player,” he said in an exclusive interview. The firm has been registered in both Myanmar and Singapore since July 2017. Singapore-registered Get All Private Ltd owns 100 per cent of Get All Myanmar Co, which aims to expand its presence in Cambodia, Laos, Bangladesh and Pakistan, as well as in West Africa simultaneous with nationwide expansion.
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  Union Parliament plans to accept loans worth Euros 70 million ($79.3 million) from the French Development Agency (AFD) to promote river bank development and urban cultural heritage maintenance in Yangon Region

  The Union Parliament on Thursday voted down the government’s proposal to receive loans worth 70 million euros ($79.3 million) from the French Development Agency (AFD). Just 34 votes were in favor of the proposal and 497 against, with six abstentions despite the deputy minister for planning and finance attempting to convince lawmakers that the project would ultimately benefit Yangon residents and saying that the government has already spent almost two years preparing the project. The loans, according to the Yangon Region government, was to be used to upgrade parks and markets, build car parking facilities, develop riverfront areas, conserve cultural heritage sites and dredge the Nga Moe Yeik Creek, an undeveloped waterway in Yangon that the regional government believes could be used for public transport.
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  Customs department introduced customs warehouse without Value-Added Tax (VAT) in the country to reduce import restrictions on Myanmar goods (U Soe Win, Union Minister of Planning and Finance)

  The customs department will introduce customs warehouses, or bonded warehouses – where goods can be stored without Value-Added Tax (VAT) or import duties – in the country, Finance Minister U Soe Win said on Friday. The aim is to align local customs warehousing procedures with international standards and reduce import restrictions on Myanmar goods, the cabinet minister explained during a meeting with Vice President U Myint Swe and business representatives. The tax reductions will involve lowering the advanced income tax burden and simplifying the logistics processes to save time. “Customs warehousing can help simplify export and import processes. Warehouses are a means to store inventory which can provide a steady supply of material when needed and help hedge against high commodity prices. Additionally, it will support legitimate trading and minimise illegal trading,” U Soe Win said.
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  Myanmar’s economic growth is expected to slow by 0.6 percent to 6.2 percent growth in 2018 - 2019 fiscal year: factors for the slowdown include rising risks from the Rakhine crisis

  Myanmar’s economic growth is expected to slow from 6.8 percent in 2017-18 to 6.2 percent in 2018-19 and face potential risks to recovery, according to the World Bank’s latest country report, released Thursday. Growth is projected to recover to 6.6 percent by 2020-21, “helped by recent policy changes such as the adoption of the Myanmar Sustainable Development Plan, liberalization of wholesale and retail trade, implementation of the Myanmar Companies Law and large investments in infrastructure projects including those related to the Belt and Road Initiative,” the bank said. But it warned that it foresaw risks from intensifying impacts of the Rakhine crisis, domestic macroeconomic imbalances and the possible repeal of the Generalized Scheme of Preferences by the European Union and a possible slowdown in global growth.
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  Qualified foreign insurance firms will receive licenses to start their operations in Myanmar by April 2019 (U Thant Sin, Director of the Financial Regulatory Department, Ministry of Planning and Finance)

  Qualified foreign insurance providers will receive licenses to operate in Myanmar by April next year. “I can assure it is happening within the next 16 weeks,” U Thant Sin, Director of the Financial Regulatory Department under the Ministry of Planning and Finance, said during the UK Capital Market and Insurance Conference in Yangon on December 12. “We will soon invite Expressions of Interest (EOI) so that foreign insurers can start operations in April or no later than May,” he said. Foreign insurers from 14 countries have established a total of 31 representative offices in Myanmar in anticipation of the government allowing full foreign investments in life insurance and joint ventures in general insurance.
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  Greater Mekong Sub-region 10th Economic Corridors Forum took place in Nay Pyi Taw to accelerate economic development in the region

  Greater Mekong Sub-region 10th Economic Corridors Forum took place in Nay Pyi Taw on Thursday. The forum was held under the GMS Economic Cooperation Program. The theme of the forum is “Extending Corridors for Inclusive Connectivity in the GMS”. Union Minister for Investment and Foreign Economic Relations U Thaung Tun gave a welcome remark at the forum. The meeting reviewed the specific initiatives to accelerate the economic development in the region.
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  U Soe Win, Union Minister for Planning and Finance, urged entrepreneurs to systematically keep their assets, accounts and cash flow statements

  Union Minister for Planning and Finance Soe Win has urged entrepreneurs to keep their assets, accounts and cash flow statement systematically, at a regular meeting between the Vice-President and private entrepreneurs in Yangon on December 14. “These documents would help support the measurements of our performances. The systematic keeping of these records would enable departments to see the cash flow statement and help support cooperation with foreign investors. In a bid to help local entrepreneurs get financial aid, Myanma Economic Bank (MEB) have been granting loans to manufacturing, service, transportation and construction sectors. The interest rate for a one-year loan is 11 per cent. The interest rate for a loan with less than three year repayment period is 12.5 per cent. The long-term loan interest rate is at 12.25 per cent. In addition, the MEB grants policy loans. The MEB can grant loans worth up to Ks300 million. The MEB has to seek the approval from the ministry for the disbursement of above Ks 300 million in loans”, said the minister.
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  Pyidaungsu Hluttaw approved USD $ 24.3 million loan from Thailand’s Neighboring Countries Economic Development Cooperation Agency (NEDA) for implementing development projects along Greater Mekong Sub-region Economic Corridors

  Pyidaungsu Hluttaw (Assembly of the Union) approved a proposal to borrow $24.3 million from Thailand’s Neighboring Countries Economic Development Cooperation Agency (NEDA) for implementing development projects in cities along Greater Mekong Sub-region Economic Corridors. The Ministry of Construction and Karen State Government will use the loan to upgrade water distribution and waste management in the town of Myawaddy, as well as conducting public awareness program civil servants capabilities. “We will use $11.3 million for water distribution, $7.6 million for waste management, and $2.2 million for capacity building of civil servant,’’said U Kyaw Lin, Deputy Minister of the Ministry of Commerce.