ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

• 

  Local oil and gas companies urged to attract partnerships with foreign firms in carrying out exploration and production (E&P) activities both onshore and offshore

  Last week, the Ministry of Electricity and Energy (MOEE) confirmed in a press conference that it would start holding tenders for offshore oil and gas production in Myanmar by the end of the year.“Tender rounds will be floated before the end of 2018,” said Daw Khin Htay, director at state-owned Myanma Oil and Gas Enterprise (MOGE). During the press conference, the MOGE also said that the tender rounds will be open to foreign oil and gas companies. “It will no longer be mandatory to join with local firms. This will instead be made voluntary in the future,” Daw Khin Htay said. Nevertheless, local oil and gas firms are encouraged to up their game to attract partnerships with foreign firms in carrying out exploration and production (E&P) activities both onshore and offshore, according to an MOEE statement. This is so local firms can benefit from foreign E&P technologies and gain access to financing. It will also protect local companies against substantial capital losses.
• 

  Joint venture between Myanmar mall operator Ga Mone Pwint Co and Thailand’s Thonburi Healthcare Group launches Yangon hospital due to demand for high quality medical services

  Myanmar mall operator Ga Mone Pwint Co has teamed up with Thailand’s Thonburi Healthcare Group to start a new facility, Ar Yu International Hospital, in Yangon, where demand for high quality standards of healthcare is rising fast. The new US$70 million hospital, which will open in mid August, is the first such project in Yangon for both Ga Mone Pwint and Thonburi.“Ar Yu will function as a general hospital but we will also have cardiologists and neurologists on board,” said Dr Nwe Nu Wai, business development manager at Ar Yu International Hospital. The move also arrives at a time when local living standards are improving, bringing about higher demand for quality healthcare. “From previous surveys, we understand that the majority of Myanmar people are more comfortable seeking medication from the local drug store or at private clinics than consult with specialists at big hospitals with modern diagnostic equipment,” said Dr Watson Aphiwatanakoon, CEO of Ar Yu International Hospital. Now, more realise the need for proper and timely diagnosis and the risks involved in delaying hospital treatment. As such, the new hospital will target patients who would otherwise seek medical treatment abroad.
• 

  Dawei Special Economic Zone (SEZ) project, situated in southern Myanmar, near the border of Thailand will be restarted in October 2018

  Situated in southern Myanmar, near the border of Thailand is a place called Dawei. In 2008 a major construction project started, the project was to link Dawei to the Kanchanaburi province, 119 km northwest of Bangkok. This construction would link production in the southern economic corridor, and will help both countries enter into the supply chain of globally important industries. However, the project halted in 2013 due to a financial situation. “The project will restart in October this year”, U Than Myint, Minister of the Ministry of Commerce, President of Dawei SEZ Management Committee, said at the regular meeting between the Vice President of Myanmar and local business leaders. After a financial shortfall, The Dawei SEZ project is eager to get underway. It has been confirmed that the Initial and primary development of Zone M, will be implemented at once. This project will restart at the end of rainy season and will be implemented by its former developer, Italian-Thai Company.
• 

  Myanmar authorities are still negotiating with Chinese consortium on deep sea port project in Kyaukphyu, western Rakhine State

  Myanmar is negotiating with a Chinese consortium to carry out a strategic deep-sea port in Kyaukphyu, western Rakhine state, as part of the planned special economic zone (SEZ) in the region, according to a report of the official Global New Light of Myanmar Sunday. The negotiation between Myanmar's Commerce Ministry and the China International Trust and Investment Corporation (CITIC) is expected to reach an agreement soon. Kyaukphyu deep-sea port project represents part of the economic corridor of China's Belt and Road Initiative and the two countries are approaching this in a way to ensure it become a win-win situation all round, said Myanmar Minister of Commerce Dr. Than Myint. The sea-port project will bring about the development of Rakhine state, the emergence of job opportunities for local people and the development of the country, he said. A consortium of six group companies, led by China's CITIC, won tender in December 2015 for the implementation of two projects -- an industrial park and a deep sea port on 1,737 hectares of land, two of the three components of the project of the Kyaukphyu Special Economic Zone (SEZ).
• 

  H.E. U Thaung Tun, Chairman of Myanmar Investment Commission (MIC) delivered the keynote address at the Myanmar Insight 2018 which was held in Bangkok on 20 July 2018`

  The following is the Keynote Address by H.E. U Thaung Tun, Chairman of the Myanmar Investment Commission (MIC) at “Myanmar Insight 2018” Shangri-La Hotel, Bangkok, 20 July 2018, the address was given with the title “Myanmar’s Political and Economic Climate: Enabling Environment for International Investment” “As a frequent visitor to this beautiful city by the Chao Phraya river, I fully appreciate the reasons why some of our Thai friends refer to it as Krun Thep Mahanakon , " City of Angels-- a city given by Indra and built by Vishnukam.” The scenic beauty of the river and the warm hospitality extended to the Myanmar delegation makes us feel at home. I wish to thank Foreign Minister Don Pramudwinai, for his kind invitation. I would also like to express our deep appreciation to Ambassador Boon-Long and the Thai Business Association of Myanmar for organizing this special event in conjunction with the 70th anniversary celebrations of the establishment of Myanmar- Thailand diplomatic relations.
• 

  Myanmar remains upbeat on attracting more investments from Thailand after a revamped companies law comes into effect on 1 August 2018

  MYANMAR is confident of attracting more investments from Thailand after a revamped companies law comes in at the start of next month, a senior official investment said. “We have great potential to welcome a huge influx of Thai investments over the next few years,” said Thant Sin Lwin, deputy director general of the Directorate of Investment and Company Administration (DICA). “Thai businesses’ interest in Myanmar is on the rise, and bilateral relations have become stronger during the current government term. I am sure we will receive more investments from Thai businesses from now on.” He said that legislative reforms, including the enactment of the Myanmar Companies Law in November last year to replace a century-old Burma Companies Act, would particularly stoke the interest of Thai businesses to do business across the border. “We are always open to foreign investors. Over the past two years, DICA has received many Thai businesses that showed their keen interest to invest here. We usually receive potential Thai investors every single month,” he said.
• 

  UMFCCI is encouraging Small and Medium Enterprises (SMEs) to embrace digital technology to ensure their long term survival

  As small and medium enterprises in Myanmar are facing challenges, the Union of Myanmar Federation of Chamber of Commerce and Industry is encouraging small and medium-sized enterprises to pursue digital competency to ensure their long-term survival, a chamber executive member said in an exclusive interview. Aye Tun, vice president of the chamber’s SMEs Committee and vice president of Myanmar Industries Association, said technology could ensure SMEs of success as they seek to expand in the digital era. To assist them, the federation and Kasikorn Bank have launched the “KBank Biz Plan Challenge” for digital entrepreneurs. Training has been underway since June 29 for a competition to be held on August 20. The participants selected will meet successful Thai businesspeople during a trip to Thailand on August 3031, and the winner will receive a US$10,000 prize. “For Myanmar SMEs to expand overseas, they need to be strong in the domestic market first,” Aye Tun said. “Then they can produce more and let the world know about the quality of made-in-Myanmar goods. It’s time we got out of import dependency. In this regard, technology does matter.”
• 

  Egat International Co (EGATi) seeks at least 10potential sites to construct small gas-fired power plants with a capacity of 5 – 10 megawatts in Myanmar

  Egat International Co (EGATi), a wholly owned subsidiary of the Electricity Generating Authority of Thailand (Egat), is in talks with local operators to construct small gas-fired power plants in Myanmar. The company is seeking at least 10 potential sites for the construction of power plants with a capacity of 5-10 megawatts. EGATi estimates the investment budget at US$3-6 million per plant. Liquefied petroleum gas will be the main fuel for power generation in Myanmar. According to president Watchara Hemruchatanun, once EGATi has local partners, the next step will be to meet with Myanmar's policymakers. "We expect to come up with a further conclusion about our projects in Myanmar very soon," he said. "We aim to sell the electricity to local household users and distribute through local state administrations." Mr Watchara said the company is confident that the Myanmar business plan will be worthwhile for EGATi's investment because local users pay power bills of up to 10 baht per kilowatt-hour.
• 

  Yangon Regional Government's plans to establish two logistics projects, Ngwe Pin Le Integrated Logistics Zone and IWT Jetty Link Dry Port project in the east waylaid by the parliament's concerns

  The Yangon government’s plan to launch two logistics projects in the outskirts of the city to relief traffic congestion downtown has been met with parliament resistance. The Ngwe Pin Le Integrated Logistics Zone and IWT Jetty Link Dry Port Project are now being established across 194 acres of land near Ngwe Pin Le industrial zone in Hlaing Thar Yar township. Construction of the two projects, estimated to require an investment of K151 billion, will begin this year and take three years to complete. The regional government has already set up a separate vehicle - Yangon Metropolitan Development Public Co (YMD) - to manage the projects, Daw Ni Lar Kyaw, regional minister of Electricity, Industry and Transportation and a director of YMD, said during a regional parliament session in June. YMD, which was incorporated in March 2017, is 91 percent-owned by the Yangon government. The remaining 9pc is held by several companies, including the Myanmar Construction Development Public Co, said U Shein Win, chair of Myanmar Construction Entrepreneurs Association and director of YMD.
• 

  Myanmar and China will sign a MOU on building the China- Myanmar Economic Corridor (CMEC) in order to promote economic integration between China, Southeast Asia and South Asia countries

  Recently, U Aung Naing Oo, director general of the Directorate of Investment and Company Administration of Myanmar, said that Myanmar and China will soon sign a Memorandum of Understanding (MoU) on building the China-Myanmar Economic Corridor (CMEC), one of the key projects of the Belt and Road initiative (BRI). The two sides reached a 15-point MoU at the working group level in February this year and agreed to collaborate on many sectors including basic infrastructure, construction, manufacturing, agriculture, transport, finance, human resource development, telecommunications, and research and technology in order to develop the CMEC. Fresh progress on the CMEC since its announcement during Chinese Foreign Minister Wang Yi's Myanmar tour in November last year indicates Sino-Myanmar ties are heading in the right direction. The corridor connects Yunnan and three important economic centers in Myanmar, including Mandalay, Yangon New City and Kyaukphyu Special Economic Zone (SEZ), and aims to promote the economic integration of the region. This also coincides with the national development plan of Myanmar in which Myanmese leaders are trying to address economic imbalances by enhancing connectivity between developed Yangon and remote and undeveloped Rakhine State. Hence, the economic corridor is the convergence of common interests of Myanmar and China.