ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Some vacant land plots in two Yangon area industrial zones will be leased out to local and foreign investors

  Some of the vacant land plots in Hlaingtharyar Industrial Zone-3 and Shwepyithar Industrial Zone-1 will be leased out to local and foreign investors in dollars, according to the Urban and Housing Development Department. The department will lease 3.5 acres of land in the Hlaingtharyar zone and 2.5 acres in the Shwepyithar zone. A supervisory committee made up of government ministers would manage the industrial zones, Yangon Region Chief Minister Phyo Min Thein said on February 1. The previous industrial zone management committees no longer have authority over the zones, he said. “Officials need to manage price manipulation of warehouses and vacant lands in industrial zones,” he added.
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  Over 190 mining sites' licences will expire in March and won't be renewed while environmental management plans are being drawn up

  YANGON-Licences for over 190 mining sites in Lonekhin, Hpakant, Mohnyin, Mogok, Hkamti, Mongshu and Nantyarseik townships are set to expire in March, according to the Ministry of Resources and Environmental Conservation. A total 192 licences granted between 2010 and 2015 will expire for sites in Mongshu, Mogok, Lonekhin, Hpakant, Mohnyin and Nantyarseik townships. Those licences will no longer be available for renewal and environmental management plans are being drawn up for the mining sites. Upon completion of the plan, the mining licences will be shared among the Union Government and respective States and Regions Government Committees, said Win Htein, consultant to the Ministry of Resources and Environmental Conservation.
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  By partnering with Action Aid Myanmar, KBZ bank provides financial assistance to support better standards of living for female agricultural producers

  Kanbawza Bank (KBZ Bank), the largest privately-owned bank in Myanmar, is to support the improvement of the standards of living for women agricultural producers in the central part of Myanmar by providing access for financing, partnering with Action Aid Myanmar, a non-profit organisation operating here since 2006. “As the first year pilot phase, we have been investing around MMK 100 million to 120 women farmers and traders in Pakokku, Magway region, who have been unable to access the country’s financial system,” Soe Tin Maung Zaw, senior general manager at KBZ Bank, said. According to the pilot phase, KBZ Bank and Action Aid Myanmar allocated and invested the finance to support MMK one million to one and half million for each female farmer with an interest rate of 13 percent per year, with the coordination of the central bank of Myanmar.
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  Dawei SEZ has been accused of grave human rights violations, lack of transparency and environmental disruption

  A few elites will benefit from reviving Dawei SEZ, but what about the rest? Civil society organisations demand authorities to halt the controversial Dawei project and rethink. CIVIL society organisations have demanded the authorities to reconsider the plans to revive the controversial Dawei Special Economic Zone (SEZ). They argued that a site-wide environment impact assessment must be carried out and all past problems must be “fully and completely” resolved before the project resumes. The SEZ has been accused of grave human rights violations including forced evictions, a lack of transparency and environmental disruption as the land lease contract for its initial phase is expected to be signed before April. Furthermore, the legality of the Environment Impact Assessments (EIAs) is questioned while experts say that the project has destroyed farmlands, polluted rivers and is threatening the lands and livelihoods of communities.
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  Seven foreign banks received approval to provide export financing and related services (U Soe Thein, Deputy Governor of the Central Bank of Myanmar)

  Seven foreign banks have received approval to provide export financing services, U Soe Thein, deputy governor at the Central Bank of Myanmar (CBM) told The Myanmar Times on Wednesday. Details of the banks have not been released, pending an official announcement. “Seven out of 13 banks have been given approval to provide export financing and its related services by the Central Bank. The others who have applied are being reviewed,” U Soe Thein said. The central bank will not restrict the rates and the volume of export financing provided by foreign banks. The loans will be disbursed according to the terms of individual banks, said U Soe Thein.
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  Myanmar Private Disaster Preparedness Network (MPD network) organized the business resilience forum in Yangon to promote knowledge on disaster preparedness and business resilience initiatives

  Private sector in Myanmar strengthens their efforts for promotion of knowledge in disaster preparedness and business resilience initiatives. The Myanmar Private Disaster Preparedness Network (MPD network) held the business resilience forum in Yangon on Wednesday. The forum explored an effective ways to engage private sector in disaster preparedness and business resilience initiatives in the country. Capacity Development Specialist, Asian Disaster Preparedness Center, Myat Thar said “In Myanmar, many of the businesses didn’t have much preparation for the disasters, most of them faced it and effected by it once it hit. During Nargis in 2008, damages and losses for the business sector estimated about 4 Billion US$. And in 2015 flooding, the business sector also losses over 119 million US$. So in today’s forum, we are aiming to share the knowledge on business resilience initiatives, good practices and will discuss possible challenges and effective ways to solve it.”
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  VisionFund Myanmar launches a new microfinance loan scheme for garment factory workers

  VisionFund Myanmar recently announced the launch of a new microfinance loan product exclusively for garment factory workers, funded by the Livelihoods and Food Security Trust Fund (LIFT), according to a press release on 16 February. The loans were first launched at the ZES garment factory located in Hlaing Thar Yar Township, with over 160 workers availing themselves of the facility, which will subsequently be extended to other factories. Many workers in the garment sector have migrated to Yangon from rural areas. Research informing LIFT’s migration programme shows that around 20 per cent – one in five people – in Myanmar are migrating within the country, moving from rural areas to urban areas to find better jobs and training opportunities to support themselves, their families and communities back in rural areas.
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  Thai imports at Myawady border gate has decreased, while Myanmar exports increased slightly

  Imports from Thailand crossing at the Myawady border gate have declined from last year’s volume. Between April and February, flow across the border totalled US$766.7 million – $66.2 million earned on exports and $700.5 million spent on imports from Thailand. That represented an increase of $15.8 million in exports and a decrease of $21.9 million in imports, compared to the figures from the same period last year. Merchants blame a policy shift in car imports and rising tax rates for the drop in imports. “According to the latest policy, only the cars with steering wheels on the left-hand side can be imported.
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  Inland Revenue Department (IRD) plans to stop levying withholding taxes from April 1 onwards in a bid to boost the economy

  The Inland Revenue Department (IRD) is planning to stop levying withholding tax starting April 1 onwards in a bid to boost the economy, it revealed during a weekend discussion. The discussions, which took place with the Yangon Regional Government, Union of Myanmar Federation of Chambers of Commerce and Industry and other business associations, were held in conjunction with preparations for new regulations under the 2018 Union Tax Law. The IRD issues new tax regulations every fiscal year, effective April 1. Among the changes for the new fiscal year will be the removal of withholding tax. The decision follows the IRD’s move last month to cancel a 2 percent withholding tax on exports, which came in response to feedback from a December 2017 discussion, during which businesses called for the tax to be withdrawn. The move was in line with the Ministry of Planning and Finance’s strategy to promote exports. Starting April 1, 2018, all forms of withholding taxes will be removed. For residents, a 2pc withholding tax is currently levied on goods, services and leases procured, while a 10pc withholding tax is levied on royalties paid. Residents are not taxed on interests paid.
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  Local banks are struggling to meet a set of regulations set by the Central Bank of Myanmar (CBM) in July 2017

  Local banks are finding it difficult to meet a set of new regulations set by the Central Bank of Myanmar (CBM) in July 2017 to modernise the domestic financial sector and better attract foreign direct investments at a time of slower growth. Under a new Financial Institutions Law, the CBM has ordered banks to maintain higher capital adequacy ratios, limit lending exposure to single borrowers, reclassify loans and advances and recover overdraft loans. Drafted with assistance from the International Monetary Fund, the regulations are in line with international Basel III standards. “The regulations imposed by the CBM are meant to align the Myanmar financial sector with the international banking industry. They are very good regulations and should be implemented,” said U Than Lwin, senior adviser at Kanbawza Bank and former CBM vice governor.