ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar and CITIC-led consortium are negotiating duties and obligations on the basis of 30:70 shareholding basis for Kyaukphuy SEZ

  CITIC has clarified local media reports claiming that negotiations to raise Myanmar’s share of a proposed deep-sea port which will form part of the Special Economic Zone (SEZ) in Kyaukphyu, Rakhine State, from 15 percent to 30pc had been agreed upon. “We note some newspapers have recently reported that [a] preliminary agreement to raise Myanmar’s stake in the Kyaukphyu SEZ to 30pc [was] reached. "Actually, on this issue, the parties are undertaking negotiations about their respective duties and obligations on the basis of a 30:70 shareholding ratio. The negotiation is still under progress and the relevant agreements have not yet been finalised,” U Kyaw Htin from CITIC Myanmar told The Myanmar Times. On Monday, local media reported that a “preliminary agreement” regarding the shareholding structure for Kyaukphyu SEZ had been reached with the CITIC-led consortium controlling 70pc and Myanmar holding 30pc. “Having reached the preliminary agreement [for Kyaukphyu SEZ], the Ministry of Resources and Environmental Conservation and CITIC will conduct environmental impact assessment [EIA] and social impact assessment [SIA],” U Kyaw Aye Thein, Rakhine State Minister for Planning and Finance, was quoted as saying.
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  To promote inclusive and sustainable economic growth for Myanmar SMEs entrepreneurs, Denmark Embassy and Myanmar’s Department of SMEs Development entered into a partnership with Responsible Business Fund

  Denmark Embassy and Myanmar’s Department of SMEs Development joined hands to promote inclusive and sustainable economic growth for Myanmar SMEs entrepreneurs. They entered into a partnership on Thursday to improve the productivity and competitiveness through Responsible Business Fund (RBF). Under the RBF, 12.5 billion kyats will be provided to the entrepreneurs who meet at least one of the 7 eligible fields and criteria set by the RBF. Over 500 SMEs will able to access responsible Business fund (RBF) until 2020. Secretariat, Responsible Business Fund, Amarnath Reddy said "... The first thing we expect is, we would be able to spend 4.5 billion kyats on 500 different SMEs.... “We think that out of this 500 projects, at least, three to four projects will become such good examples of demonstration.... So that, when we withdraw in 2020 or 2021, then most of the SMEs know about these areas and most of this suppliers and service providers who are giving this solutions will be able to use the demonstration to expand the market and raise the level of SMEs in this country..."
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  U Ye Htut Naing, President of Tanintharyi Region Chamber of Commerce and Industry, encouraged the Myanmar Government to strengthen bilateral cooperation with Kanchanaburi Province

  HIGH POTENTIAL of Myanmar’s Tanintharyi Region could be unlocked only if the government attempts to strengthen bilateral cooperation with the neighbouringKanchanaburi Province, according to Ye HtutNaing, president of Tanintharyi Region Chamber of Commerce and Industry (TCCI). “Myanmar and Thai businesses have planned to implement the ‘sister cities’ initiative between Dawei and Kanchanaburi. Now it is time to speed up our efforts,” he said in an exclusive interview. He stressed the importance of support from the Union Government as well as the regional authorities to realise the proposal by the private sector. “Recently, I received a lot of Thai businesses based in Kanchanaburi. I can obviously see how eager they are to play a role in creating sister cities for mutual benefits. Likewise, we Myanmar businesses want this MoU [memorandum of understanding] to be signed as soon as possible,” he said.
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  Ministry of Commerce will permit joint ventures with foreign investors in some sectors to develop value-added products and diversify from exporting raw materials

  Most exports in Myanmar are currently raw materials but the government is keen to change that. In order to scale up value-added work within the country and move away from exporting raw materials, the ministry will allow foreign investor to take part in joint ventures in the relevant sector, U Khin Maung Lwin, assistant secretary of Ministry of Commerce, said. The ministry has green lighted foreign investors who collaborate with local businesses to invest in export-oriented value-added manufacturing, according to Ministry of Commerce on January 22. The ministry aims to expand export volume, raise productivity and diversify overseas markets through developing value-added manufacturing. Through value-added manufacturing, local businesses will benefit from the capital, technology and investment, U Khin Maung Lwin added.
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  Dawei Special Economic Zone (SEZ) will develop in full to accelerate its completion after five years delay

  The Dawei Special Economic Zone (SEZ) will be developed in full to accelerate its completion after a five-year delay. The original plan was to develop the first phase of the SEZ, a spokesperson of the SEZ management committee said. A public forum was held in Dawei SEZ area for the purposes of sharing information and discussing action plans by the management committee and Italian-Thai Development company (ITD), the developer selected to construct the initial phase of the SEZ, last week. The government has been exploring ways to restart development of Dawei SEZ, which has been suspended since2013, when, ITD withdrew from the agreement to develop the $8 billion SEZ due to financial constraints. There were also community complaints regarding lack of adequate compensation for the construction and potential pollution and disruption caused. ITD resigned the concession agreement in 2015. Currently, Japan International Cooperation Agency is drawing up a full phase master plan for Dawei SEZ. The plan will be finalised and submitted to the relevant SEZ authorities in April. Full phase implementation will commence in tandem with development of the initial phase of the SEZ, which involves the construction of roads and a port as well as electricity generation, said U Myint San , Vice President of Dawei SEZ.
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  Tanintharyi region government’s 2017-18 budget prioritizes electricity, roads, bridges, and low-cost housing

  Tanintharyi's regional government is spending heavily on infrastructure and its 2017-18 budget focuses on electricity, roads and bridges as well as low-cost housing, Chief Minister Daw Le Le Maw told The Myanmar Times on January 22. Out of the approved budget of K157.45 billion for 2017-18 fiscal year, K119.86 billion has been allocated for electricity, roads and bridges, as well as low-cost housing projects, according to the inaugural Citizen’s Budget released by the regional government. The Union government first introduced the Citizen’s Budget in the 2015-16 fiscal year. But for Tanintharyi Region, this is the first of its kind. The launch ceremony was held at Diamond Crown hotel in Dawei on January 22, where the government disseminated hundreds of physical copies in hopes of helping citizens better understand the budget process and how the administration receives and spends its resources. This inaugural budget was supported San Francisco-headquartered non-profit organisation The Asia Foundation (TAF). The TAF’s work on strengthening sub-national governance in Myanmar is funded by the UK government’s Department for International Development(DFID), Australia’s Department of Foreign Affairs and Trade (DFAT), and the Swiss Agency for Development and Cooperation (SDC).
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  Internal Revenue Department announced the ten largest foreign taxpayers list from the previous fiscal year 2016-17

  Internal Revenue Department has announced the list of foreign companies that paid most in tax for 2016-2017 fiscal year with Moattama Gas Transportation paying over K140 billion in income tax and Myanmar Brewery paying over K100 billion in commercial tax. The 10 largest taxpayers in income tax for that fiscal year are Moattama Gas Transportation that paid over K140 billion, Taninthayi Pipeline Company LLC less than K80 billion, PTTEP less than K40 billion, Myanmar Brewery and Telenor Myanmar less than K30 billion, Total E & P Myanmar and Unocal Myanmar less than K20 billion and Myanmar CP Livestock, Nippon Oil Exploration and Micasa Hotel less than K9 billion. The 10 largest taxpayers in commercial tax for the same year are Myanmar Brewery that paid over K100 billion, Myanmar Distillery over K50 billion, Virginia Tobacco and Shwe Li (1) Hydropower less than K50 billion, Lluvia Ltd and Coco Cola Pinya Beverages less than K10 billion, Huawei Technologies, Heineken Myanmar and British American Tobacco less than K5 billion and Myanmar Japan Thilawa Development Ltd less than K4 billion.
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  In order to promote Myanmar’s export, HUBS MK Co., Ltd invested US$ 98 million to build an international standard logistics hub in Yangon

  South Korea has invested $98 million to construct a logistics hub at Shwe Lin Ban Industrial Zone in Hlaing Thar Yar township, Yangon region. The move is touted to be vital to promoting Myanmar’s exports. HUBS MK Co Ltd from South Korea and Myanmar Trade Promotion Organisation under the Ministry of Commerce signed a memorandum of agreement (MOA) for the project in Nay Pyi Taw on Wednesday. As Myanmar continues to avail portions of its economy to international trade, an international-standard logistics hub will be necessary to ensure a certain level of export quality and reduce production and transportation costs, said U Aung Soe, director-general of Myanmar Trade Promotion Organisation. “The quality of Myanmar’s agricultural, livestock and fishery products earmarked for export can be controlled and sustained if we build a modern trade support system which facilitates logistics and transport of the goods from rural farms to a central hub for shipping overseas. Other export products should be promoted too. That’s the reason why this project was initiated,” said U Aung Soe.
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  Despite local criticism, Tanintharyi government plans to develop a new quality fish auction market in Myeik

  The government is planning to develop a quality fish-auction market as Japan helps draw up a masterplan for the development of Myeik town in Taninthayi Region, said Region Chief Minister Dr Le Le Maw. The chief minister revealed the plan in a recent meeting with local people and departmental organisations in Myeik after local residents criticised the government for attempting to launch a new fish-auction market. Locals suggested the government instead provide assistance to the existing international fish-auction market. Myanmar Investment Commission has approved an investment of US$70 million toward the international fish auction market but there have been delays in the transfer of money. “I am sorry,” the chief minister told local residents and department staff. “We called a meeting to discuss creating a legitimate fish-auction market. What we are doing now tends not to be in conformity with the law. Whatever we do, we must act within the framework of the law. You all know about the 2008 constitution. We cannot do anything if we do not act in line with the constitution,” said the chief minister.
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  Myanmar Investment Commission (MIC) plans to reduce the registration fee for SMEs

  The Myanmar Investment Commission (MIC) is planning to reduce the registration fee for small-and medium-sized enterprises (SMEs), it announced at a press conference. Aung Than Kyaw, deputy director-general of the Directorate of Investment and Company Administration, said: “The MIC plans to reduce fee significantly. It is too early to reveal the exact amount. The move is to enable starting businesses to reduce their costs as much as they can.”