ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

• 

  Weststar Aviation Service hasn’t received the approval from Ministry of Electricity and Energy to start operations, despite winning the tender to provide helicopter services to offshore oilfields in Myanmar since April 2017

  Weststar Aviation Service, which won a tender for providing helicopter services to offshore oilfields in Myanmar in April last year, is experiencing losses as it has yet to receive approval from the Ministry of Electricity and Energy (MOEE) to start operations, which were meant to have commenced on March 21, said Daw May Thant Zin, Weststar’s local representative,at a press conference in Yangon’s Park Royal Hotel on August 16. Last year, national oil companies Total and Petronas and PTTEP invited bids for the provision of helicopter services. While companies are able to launch tenders, the winners are still required to apply for approval to operate from the relevant ministries. In September 2017, Myanma Oil and Gas Enterprise (MOGE), the national oil and gas company of Myanmar, also recognised Weststar as the winner of the tender. Malaysia-based Weststar won the tender after completing the process as it was able to offer helicopter services at an affordable price of US$22,900 per month, the company said.
• 

  U Set Aung, Deputy Minister for Planning and Finance was appointed as the new Chairman of the Kyaukphyu Special Economic Zone (SEZ) Management Committee

  Deputy Planning and Finance Minister U Set Aung has been appointed chairman of the Kyaukphyu Special Economic Zone (SEZ) Management Committee amid the government’s ongoing efforts to renegotiate its agreement with the project’s Chinese developer to give Myanmar a larger stake. The appointment took effect on May 8 and was approved by Vice President and Chairman of the Central Body of Myanmar Special Economic Zones U Henry Van Thio, according to an announcement in the government gazette on Sunday. It said the management committee’s previous chairman, U Soe Win, was now a joint chairman but did not make clear whether the two chairmen would be working as equals. The announcement could not be found on the websites of the President’s Office or the Ministry of Information, however, where government announcements are usually posted first. But Planning and Finance Minister’s Secretary U Tun Tun Naing confirmed to The Irrawaddy that the announcement in the government gazette was correct.
• 

  Myanmar and Thailand signed two MOUs during the visit of the Minister of Foreign Affairs, Thailand, to Myanmar for the 9th meeting of the Joint Commission for Bilateral Cooperation between two countries

  Myanmar and Thailand yesterday signed several agreements which further cemented ties between the two countries. These included a bilateral airline agreement, inked at the Myanmar Foreign Minister’s office, as well as a second agreement to improve an existing shrimp breeding zone with the aim of facilitating development in Rakhine State. The agreements were signed after 9th meeting of the Joint Commission for Bilateral Cooperation between the two countries during Thai Foreign Minister Don Pramudwinai’s trip to Nay Pyi Taw. The airline agreement will replace the existing agreement, which was inked in 1969. “We need to amend the old agreement to make it more relevant to the present time,” said U Nay Win, director from Department of Civil Aviation under Ministry of Transport and Communications. In the new agreement, rules governing the aviation sector, including airlines and airline service providers were amended or included.
• 

  Fourth workshop of Myanmar- Japan Joint Committee was held at Yangon Stock Exchange (YSX) with the aim to develop the bond market

  The fourth workshop of the Myanmar-Japan Joint Committee to develop bond market was held at the Yangon Stock Exchange (YSX) yesterday afternoon, with a focus on developing the bond market. Attending the meeting were Deputy Minister for Planning and Finance U Maung Maung Win, who is also Chair of the Securities and Exchange Commission, commission members, managing director of Yangon Stock Exchange and officials, officials from the Japanese embassy, the JICA expert, counsellors appointed to CBM, DICA and IRD from Japan, officials from the Japanese Ministry of Finance, Japan Exchange Group, the Department of Financial Services, and Daiwa Institute of Research Holdings Ltd. During the workshop, they discussed increasing the number of companies listed on the Yangon Stock Exchange by holding discussions related to investment and selling initial shares to the public once every three months and preparations for the upcoming YSX EXPO 2018 in September this year.
• 

  Central Bank of Myanmar (CBM) may not be able to effectively control the local currency depreciation due to the lack of control over illegal currency exchange markets, a drop in foreign reserves and huge external debts

  Central Bank of Myanmar (CBM) is unlikely to effectively control the greenback appreciation against local currency due to the lack of control over illegal currency exchange markets, a drop in foreign reserves and huge external debts, banking experts and economists have criticized. Local currency has reached a record low. The value of US dollar is expected to hit up to Ks-1500. There is a flow of about US$ five billion in illegal markets every year. There is a trade deficit of about US$ four billion in 2017-2018 FY and US$ one billion in the mini budget period. The country is likely to solve trade deficits with the use of US dollars from illegal markets. The country’s oversea debts have reached over US$ one billion within one year. And the country has to repay over US$ 10 billion oversea debts in installment and foreign reserves amount to about 3.2 months of exports.
• 

  Pyin Oo Lwin property market demands have been rising since April 2018 and are expected to rise till the end of the year

  Demand for property in Pyin Oo Lwin, formerly known as Maymyo, in Mandalay, has been on the rise of late. Property sales in the former colonial hill station has picked up since April, according to real estate agent Daw Khin Saw Myint. “Prices have fallen compared to before and we are seeing more buyer interest in Pyin Oo Lwin. We think sales could continue until the end of the year,” she said. According to Daw Khin Saw Myint, properties previously worth K150 million have fallen by as much as 20 percent. Meanwhile, road conditions have improved and the population of Pyin Oo Lwin has also improved. “Now, the Padaythar New City in Pyin Oo Lwin is becoming more popular and lively. Even the designs of the houses are looking more attractive. People are interested in 40ftx60ft and 60ftx80ft properties near the market and highway terminal which are worth around K120 million,” she said. Daw Khin Than from Kaung Hein Sat Real Estate Agency in Pyin Oo Lwin said if tax rates and stamp duties for real estate are reduced from the current level, sales transactions could continue to increase.
• 

  With the support of CIESF, Japan, Union of Myanmar Federation of Chambers of Commerce and Industry organized the Business Model Competition in order to discover new potential businesses in Myanmar

  Business Model: Applications Called For Competition The Republic of the Union of Myanmar Federation of Chambers of Commerce & Industry (UMFCCI) is organizing a Business Model Competition with the support of CIESF, Japan. It aims to nurture a new young generation of Myanmar corporate entrepreneur and at the same time to discover new potential businesses in Myanmar. The Competition is opened to all who are under the age of 32, and the contestants are to participate as a team, with 2 to 3 members per team. Orientation on the competition will be provided to all interested contestants on 11 and 18 August at UMFCCI Training Institute in the afternoon to familiarize them with the competition. Lectures and training by both local and overseas resource persons on the subjects will also be provided to the participants to enhance their skill and knowledge. Application Deadline is 6th September.
• 

  Internal Revenue Department (IRD) invited qualified service providers to submit Expression of Interest (EOI) to build ICT system, which will enable taxpayers to use mobile banking

  Taxpayers may soon be able to pay their dues to the government via mobile banking, said U Min Htut, director general of the Internal Revenue Department (IRD). The IRD is now inviting qualified service providers including the banks and mobile money service operators to submit Expressions of Interest (EOI) to develop an information and communications technology (ICT) system which will enable taxpayers to use mobile banking to pay their monthly commercial and special goods taxes as well as quarterly income taxes. By making it more convenient for taxpayers to make payments, the government hopes to collect more taxes and maximise revenues at a time when public spending is expected to rise in the coming fiscal year.
• 

  Yangon Regional Government and South Korea based company, Myanmar Wooree Company signed a MOU for Yangon Region Economic Development project to improve businesses in the commercial city of Yangon

  The Yangon Region government and South Korea-based Myanmar Wooree Company signed a Memorandum of Understanding for Yangon Region Economic Development Project at Yangon Region government office on 11 August. Yangon Region Chief Minister U Phyo Min Thein in an address said, “this event aims to the commercial development of Yangon Region. Signing an MoU between Yangon Region government and Myanmar Wooree Company is also the first step for the regional government to improve businesses in the commercial city of Yangon, in cooperation with economic development partner South Korea, under the guidance of the Ministry of Commerce. The industrial development project area is located on the west bank of the Yangon River. It is also situated near the construction project area of the Yangon-Dala Bridge, which is a friendship bridge between Myanmar and South Korea. The construction of the bridge is slated to be completed in 2020-2021fiscal year. “This bridge will bring a number of benefits to the industrial zone area implemented by Wooree Company and economic development for Yangon Region”, said Yangon Region Chief Minister. In addition to this, Yangon Port is being planned to be expanded to the mouth of Yangon River, he maintained.
• 

  Ten out of 32 state-owned economic organisations, including News and Periodicals Enterprise set to lose over K1 billion, will make losses this fiscal year, according to the Ministry of Planning and Finance. According to the estimated budget for 2018-2019 FY and trade data, there are 26 state-owned businesses operating with union budget. Among them, 16 will be making profits this year. Meanwhile, there are six state-owned enterprises running outside the union budget, and five are set to make profits. The 26 state-owned enterprises running with the union budget are under the control six ministries. News and Periodicals Enterprise under the Information Ministry is due to make a loss of K1,157 million. Of the five economic organisations under the Ministry of Transport and Communications, Inland Water Transport is set to lose K9,000 million, Road Transport K1,396 million, Myanma Railways K97,923 million and Myanmar Postal Service K4,110 million. Only Myanmar Post and Telecommunications will earn over K98,144 million in profit. The Ministry of Natural Resources and Environmental Conservation with five enterprises is due to make a profit of K333,546 million this FY. For the Ministry of Electricity and Energy, only Electric Power Enterprise will make a loss of K629,963 million and the remaining four enterprises are set to make profits. Moreover, the six state-run enterprises under the Ministry of Planning and Finance are due to make a profit of K192,515 million. For the Ministry of Industry, Myanma Pharmaceutical Industries will make a profit of K3,783 million while Nos. (1), (2) and (3) Heavy Industries Enterprises are due to lose K82,492 million. Of the state-owned economic organisations operating outside the union budget, Myanma Port Authority and Myanma Shipyard Enterprise are making profits. Myanmar National Airlines and Central Bank of Myanmar will earn K2,941 million and K564,578 million respectively in profit. Yangon Electricity Supply Corporation and Mandalay Electricity Supply Corporation are due to make a total profit of K54,762 million.

  Ten out of 32 state-owned economic organisations, including News and Periodicals Enterprise set to lose over K1 billion, will make losses this fiscal year, according to the Ministry of Planning and Finance. According to the estimated budget for 2018-2019 FY and trade data, there are 26 state-owned businesses operating with union budget. Among them, 16 will be making profits this year. Meanwhile, there are six state-owned enterprises running outside the union budget, and five are set to make profits. The 26 state-owned enterprises running with the union budget are under the control six ministries. News and Periodicals Enterprise under the Information Ministry is due to make a loss of K1,157 million. Of the five economic organisations under the Ministry of Transport and Communications, Inland Water Transport is set to lose K9,000 million, Road Transport K1,396 million, Myanma Railways K97,923 million and Myanmar Postal Service K4,110 million. Only Myanmar Post and Telecommunications will earn over K98,144 million in profit.