ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Local economist warns of adverse impact of Kyat depreciation on Myanmar's export competitiveness in the manufacturing and agriculture sectors

  MYANMAR’S government has been urged to rein in the rise of the kyat and ease the impact of a decline in export competitiveness on the country’s manufacturing and agricultural sectors. The economy could be in deep trouble, if the exchange rate continues to appreciate against the US dollar, said U Myint, who served as the chief presidential economic adviser in the previous government. On Tuesday, the market rate set one US dollar at 1,468 kyats, 126 kyats higher than that of July. “When earnings from exports in local currency are no longer able to cover the costs of production, huge losses are incurred and enterprises have to close down,” U Myint told a public forum. “When enterprises close down, workers lose jobs, farmers and fishermen cannot sell their products. When they cannot sell their products this year, they will not produce them next year. The economic, social and political consequences of this chain of events can be serious.” He foresees a decline in the manufacturing and agricultural sectors if the government cannot exert some control over the volatility in foreign exchange.
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  Companies in the promotion zone made 75 percent of overall investments in Thilawa Special Economic Zone (SEZ) since 2014 – 2015 fiscal year

  Companies in the promotion zone of Thilawa Special Economic Zone (SEZ) brought US$1.13 billion into the zone since 2014-2015 fiscal year, accounting for over 75 per cent of overall investments. There are 59 companies executing in the promotion zone. Meanwhile, 38 companies are working as free zone investors in Thilawa, with investments of $363 million. In the past four months this year, three companies invested in promotion zone while one went to free zone. A company exporting at least 75% of the production in value is registered as a free zone investor, who will be exempted for corporate tax for 7 years starting from commercial operation. Companies, such as logistics that support export-oriented manufacturers, can also be free zone companies. Domestic- oriented manufacturing companies are regarded promotion zone companies and they are eligible to enjoy five-year tax holidays for corporate tax.
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  Ministry of Industry invites foreign and local enterprises to submit Expressions of Interest (EOIs) to invest in the State owned, Economic Industrial Park (Thaton) in Inn Shae village, Thaton Township, Mon State

  The Ministry of Industry (MOI) is inviting foreign and local enterprises to invest in the Eco-Industrial Park (Thaton) in Inn Shae Village, Thaton township, which is in Mon State. The park is open to businesses involved in any sector. Investors interested in setting up facilities at the 400-acre park are required to submit Expressions of Interest (EOI) to No.(3) Heavy Industrial Enterprise, which is under the MOI, by the deadline of September 28.
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  Yangon Tyre fends off competition for more growth as demands for rubber tyres is rising in tandem with various types of vehicles in Myanmar

  Yangon Tyre, a homegrown tyre maker, wants to grow its local market share as demand for rubber tyres rises in tandem with various types of vehicles in Myanmar. “As more infrastructure is developed and existing road conditions improve, there will be less need to replace damaged tyres, but the number of vehicles on the roads will nevertheless increase,” Dr Htin Kyaw Oo, CEO of Yangon Tyre, told The Myanmar Times during an interview. With its second factory in Bilin now up and running, Yangon Tyre is already producing tyres for passenger vehicles and small trucks. This year, the factory began manufacturing tyres for bicycles and capacity is now up to 600 per day from 200 before. The company is also finalising plans to expand its product range to include tyres for tractors and motorcycles. Currently, tractor tyres are mostly imported, but with demand rising from the agriculture sector, it’s time to start producing domestically, Dr Htin Kyaw Oo said.
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  Department of Power Transmission and System Control (DPTSC)’s tender committee invited sealed bids for the extension of the 230 kV Thaketa Substation and construction of three new substations

  The tender committee for the Department of Power Transmission and System Control (DPTSC) invites sealed bids for the extension of the 230kV Thaketa Substation, and the construction of three new substations. The submission deadline is 6 September 2018. The Republic of Myanmar has received financing from the Asian Development Bank (ADB) toward the cost of the Power Transmission Improvement Project. Part of this financing will be used for payments under the contract named above. The following information highlights the detailed requirements for potential bidders. 1. Bidding is open to contractors from eligible source countries of ADB. 2. The Department of Power Transmission and System Control (DPTSC) (the employer) invites sealed bids from eligible bidders for the extension of the 230kV Thaketa Substation, and the construction of three new substations at Kyaikasan, South Oakkalapa, and West University Substations (the Facilities). The Facilities are all located within Yangon region. 3. International Competitive Bidding will be conducted in accordance with ADB’s Single-Stage: One-Envelope bidding procedure, and is open to all bidders from eligible countries as described in the bidding document.
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  According to Myanmar Companies Law 2017, there are three main steps for foreigners to participate in the Yangon Stock Exchange

  According to Myanmar Companies Law 2017, foreigners are allowed to invest up to 35% of stocks in local companies. There are three main steps needed in order to implement the foreigner participation scheme, said U Thet Htun Oo, executive senior manager of YSX. “First, Securities Exchange Commission will release regulations and guidelines for foreigner participation in Yangon Stock Exchange (YSX) stocks, in accordance with the new companies law, which will come out soon. Second, YSX and Securities Companies will draw up procedures and systems how to control daily foreigners abiding the rules and regulations. These procedures are being developed. Third, all YSX-listed companies are needed to register again at the DICA office and extraordinary meetings are conducted to get approval of foreigners in their respective companies. Those three steps are still under process”, he maintained. Those stages are likely to be finished in two months, he continued.
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  Industry bodies from Myanmar and Taiwan signed two MOU in order to boost bilateral economic ties, reflecting Taiwan’s pledge to support Myanmar with capacity building and technical assistance in core sectors including textile and food processing

  SEEKING to build on the rapid growth in trade between Taipei and Myanmar, industry bodies from the two sides have signed two memoranda of understanding at the recent Taiwan-Myanmar Industrial Collaboration Summit. MyoThet, vice president of the Union of Myanmar Federation of Commerce and Industry (UMFCCI), said the agreements would help boost bilateral economic ties, reflecting Taiwan’s pledge to support Myanmar with capacity building and technical assistance in core sectors including textile and food processing. The agreements were signed at the event with the Chinese National Federation of Industries. “Taipei is very well-known for their advanced technology in agro-based food products. By using the latest technology, they manage to produce a wide range of value-added products. So, we are happy to cooperate with them,” Myo Thet.
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  Industry bodies from Myanmar and Taiwan signed two MOU in order to boost bilateral economic ties, reflecting Taiwan’s pledge to support Myanmar with capacity building and technical assistance in core sectors including textile and food processing

  SEEKING to build on the rapid growth in trade between Taipei and Myanmar, industry bodies from the two sides have signed two memoranda of understanding at the recent Taiwan-Myanmar Industrial Collaboration Summit. MyoThet, vice president of the Union of Myanmar Federation of Commerce and Industry (UMFCCI), said the agreements would help boost bilateral economic ties, reflecting Taiwan’s pledge to support Myanmar with capacity building and technical assistance in core sectors including textile and food processing. The agreements were signed at the event with the Chinese National Federation of Industries. “Taipei is very well-known for their advanced technology in agro-based food products. By using the latest technology, they manage to produce a wide range of value-added products. So, we are happy to cooperate with them,” Myo Thet.
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  Myawady border trade volume earned USD $ 261 million during 1 April - 20 July 2018, which is an increase from USD $ 243 million during the same period of last year

  Myanmar has earned US$261 million from Myawady border trade center with Thailand until July 20 of this fiscal year even though trucks loaded with consumer goods from Thailand are struggled to cross Gyaing suspension bridge amidst heavy rain, according to Ministry of Commerce. Myawady border trade center, which is the biggest trade center among border trade centers with neighbouring Thailand, earned US$243 million in the same period of last fiscal year from April 1 to July 20. The border trade volume declined after floods occurred in Kayin State from second week of July. It declined more in last week of July as trucks waited for water to recede, said a government employee from a border trade center. A truck driver said, “I have been waited for more than ten days and I am worried about the increase of basic commodities prices. Some are carrying goods, which are easily to be decayed, using smaller cars.”
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  Myanmar Centre for Responsible Business (MCRB) presents the legal framework for responsible business in Myanmar and how a “creating shared value” approach can benefit both business and local communities at Mon’s legislature

  Yangon-Based Myanmar Centre for Responsible Business made a presentation about responsible business in Mawlamyine’s regional parliament. On July 13, Aung Kyaw Soe and Hlaing Min Oo from the MCRB presented at the “Project Planning and Project Management in Financial Workshop” held at the Mon State Hluttaw Hall in Mawlamyine organised by National Enlightenment Institute (NEI). Around 90 participants attended, including Daw Tin Ei, Speaker of Mon State Hluttaw, and members of the regional parliament, officials, business executives and civil society organisations from the region. MCRB’s presentations focused on what a responsible business is, the legal framework for responsible business in Myanmar, and how a “creating shared value” approach can benefit both the business and local communities in Mon State. They stressed the need for a clear and consistent legal framework to support responsible business and the importance of transparency, particularly around permitting. Their presentations covered the Myanmar Investment Commission process and Environmental Impact Assessment (EIA) and other relevant permitting processes.