ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar sees over USD $ 1 billion increase in exports in the first four month of new fiscal year when compared to the year earlier period

  With the government and private sector working to increase exports, Myanmar witnessed some $1.144 billion rise in export earnings in the first four month of the new fiscal year compared to the year-earlier period, according to Ministry of Commerce data. Imports surged by $697 million during the same period, resulting in a $627 million trade deficit. “Exports increase can help increase the country’s economic development. Therefore, we are addressing all the problems and challenges in doing trade and business by organizing monthly meetings,” Vice President U Myint Swe said at a monthly meeting with local business leaders at UMFCCI.
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  South Korean conglomerate Posco International Corporation discovered a new gas field in Block A3 offshore in Rakhine

  South Korean conglomerate Posco International Corporation has discovered a new gas field in Block A3 at the Shwe natural gas project located offshore Rakhine, The Myanmar Times understands. The company confirmed that it had found a gas column of around 18 meters at its Mahar-1 exploration well after it began exploratory undersea drilling in Block A3 last month. The discovery was made more than 2,500 meters into the seabed and could yield about 38 million cubic feet of natural gas per day, the Korea Herald has reported.
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  Myanmar and Thailand signed Memorandum of Understanding (MOU) for a purchase of corn as Thai growers are opposing such an agreement

  Myanmar and Thailand have not yet signed a Memorandum of Understanding (MoU) for a year-long purchase of corn as growers from Thailand are opposing such an agreement, according to news released online by the Ministry of Commerce. Under a bilateral agreement between Thailand and Myanmar, corn exports were to be exempt from tax from 1 February to 31 August. Normally, Myanmar’s corn exports to Thailand are suspended for five months (September-January), according to the Myanmar Corn Farmers’ Association. “The trade is quite slow as the prices offered by Thailand cannot cover transportation and input costs. Starting from January, Thailand’s traders purchased corn and kept it in a warehouse located in Myawady,” it stated.
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  Non-performing Loans (NPLs) at the three state-owned banks exceed K 260 billion

  The combined non-performing loans (NPLs) at three state-owned banks have exceeded K260 billion, according to Union Auditor General’s report for the six months between April and September 2018. The report showed that NPLs at Myanmar Economic Bank (MEB), Myanmar Agricultural Development Bank (MADB) and Myanmar Investment and Commercial Bank (MICB) totaled K 262.9 billion. Around half the NPLs - K133.7 billion - were from MEB, representing around 6pc of the bank’s loan book. NPLs represented more than 9pc of MADB’s loan book and 8pc of MICB’s loan book. Among those which have not paid back their loans to MEB are Myanmar Fisheries International Joint Venture, a French and local JV which borrowed money to develop an international fish auction market. The outstanding loan as at October 2019 was K3.9 billion. The company is trying to raise a further K20 million.
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  The value of Myanmar’s import increase USD $ 1 billion as of 1 February in the 2019 – 2020 financial year

  The value of Myanmar’s imports between 1 October and 7 February in the 2019-2020 financial year stood at US$7.44 billion, an increase of $1.05 billion from $6.39 billion recorded in the year-ago period, according to data released by the Ministry of Commerce. The value of imports in the consumer, capital, intermediate goods, and CMP business groups rose significantly in the current fiscal. Over the past four months, capital goods, such as auto parts, vehicles, machines, steel, and airplane parts were brought into the country. Capital goods made up a large share of Myanmar’s imports in the current fiscal. Their import value was estimated at $2.72 billion. The figure was $726 million higher compared to the same period in the previous FY. Meanwhile, Myanmar imported consumer products worth $1.26 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed an increase of $68.7 million compared with the corresponding period of the 2018-2019FY.
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  Yangon Chief Minister urged environmentally friendly and responsible investments in Yangon Region

  Yangon Chief Minister U Phyo Min Thein called for environmentally-friendly and responsible investments into the region during remarks at the February 6 ‘Green Economy Green Growth’ seminar at UMFCCI. “We have carried out mangrove forest restoration initiatives in Yangon Region by planting around 30,000 acres of mangrove trees as we want to fence the Mottama coastal area with mangrove forest,” said the Chief Minister. “This will help prevent natural disaster and climate change not only for people in Yangon but also for the whole country.” “Furthermore,” he continued, “we are also focusing on smokeless industries while making sure to mitigate the consequences of smokestack industries.”
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  Three foreign companies withdraw their investment plans from the Thilawa Special Economic Zone (SEZ)

  Three foreign companies have withdrawn their investment plans from the Thilawa Special Economic Zone (SEZ), according to U Aung Htoo, deputy commerce minister. The minister was responding to questions on developments at the SEZ from U Khin Cho, a representative of Pyithu Hluttaw, at a parliament session on February 14. As at December 2019, the government has permitted 115 companies from 19 countries to operate in Thilawa SEZ. However, three have withdrawn their investment plans, resulting in 112 companies having invested a total of US$1.9 billion in Thilawa so far, U Aung Htoo said.
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  Myanmar International Livestock Expo 2020 (MILE2020) scheduled to be held in May at Yangon

  A three-day Myanmar International Livestock Expo 2020 (MILE2020) is scheduled to be held from 14-16 May at the Yangon Convention Center (YCC). The expo is being organized by the Myanmar Livestock Federation (MLF). MILE2020 will be the biggest livestock expo in Myanmar, and will be held alongside Agri-Tech Myanmar 2020, said officials. It will feature the latest products and technologies in livestock, poultry, and related agribusinesses, and feature a conference of veterinarians, animal scientists, and manufacturers. Exhibitors from 10 countries will display their products in 130 booths. The expo will also provide business matching opportunities.
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  UK Aid funded DaNa Facility unveils report on Kachin State’s SME Ecosystem

  UK Aid-funded DaNa Facility and Cordaid recently unveiled their study, “The Ecosystem for Small and Medium-Sized Enterprises in Kachin State” at an event attended by Kachin State government officials, donors, humanitarian and development practitioners, local enterprises and other key stakeholders. “Understanding the private sector landscape in Kachin and the challenges SMEs face is essential for creating new opportunities for inclusive growth – growth that creates economic opportunities for poor communities and internally displaced persons,” said Thomas Coward, team leader of DFID Myanmar’s Inclusive and Livelihoods team.
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  KB Kookmin Bank (KB) is preparing to acquire a corporate license permitting it to sell advanced financial products in Myanmar

  KB Kookmin Bank (KB), South Korea’s largest bank, is preparing to acquire a corporate license permitting it to sell advanced financial products in Myanmar. The bank plans to introduce new financial instruments and services in retail banking, such as housing and SME finance, corporate finance, including trade finance and infrastructure finance, digital banking and personal banking services. KB is Korea’s No.1 housing finance bank. Kim Chang-woo, head of KB Yangon office, said KB will leverage on its cooperative ties with the Ministry of Construction and share its know-how in housing financial products and services.