ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Government and media scrutiny and regulations needed to ensure Belt and Road projects are viable

  China’s Belt and Road Initiative (BRI), seen most visibly in Myanmar through a proposed “economic corridor” between the two countries, requires government and media scrutiny and regulations to ensure projects are done in a socially and environmentally responsible way, an international think-tank says. Transnational Institute, an Amsterdam-based think-tank focused on building a just, democratic and sustainable planet, released a briefing paper this month on the Belt and Road Initiative (BRI) in the Myanmar context. The paper examines four major infrastructure projects in Myanmar: the interconnection of Myanmar and Chinese electricity grids; a proposed railway from Kunming to Kyaukphyu; a land and waterway passage between the two countries, and industrial hubs.
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  The South Korea reiterated their commitment to invest in Myanmar

  The Embassy of the Republic of Korea (ROK) has issued a statement reaffirming South Korea’s commitment to investing in Myanmar. The statement issued last week reiterated that the embassy has not heard any official news of South Korean companies considering relocating from Myanmar to neighbouring countries. The statement was issued following the emergence of news reports in Bangladesh reporting that a South Korean developer of industrial zones active in Myanmar intends to do the same in Bangladesh, and that South Korean companies would be relocating there. The embassy’s statement went on to say that it has not heard of any South Korean company or factory operating in Myanmar considering relocation to neighboring countries.
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  Thai businesses are considering moving their businesses to Myanmar due to the cheap labour wages in Myanmar

  While labour wages are rising in Thailand, some of its enterprises are discussing moving their businesses to Myanmar, according to U Thant Sin Lwin, Director-General of the Directorate of Investment and Company Administration (DICA), state media reported. “At present, Thailand investors are entering Myanmar as cheap labour wages are attracting them,” he said. “As labour wages in Thailand have risen, the kingdom’s business firms are considering moving their businesses to Myanmar,” U Thant Sin Lwin, was quoted as saying. The businesses are engaged in manufacturing LEDs, auto parts and accessories, among other things.
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  The global market leaders for contract logistics solutions in Myanmar, DHL Supply Chain scaled up their operations with its first multi-user warehouse in Myanmar

  DHL Supply Chain, one of the global market leaders for contract logistics solutions, announced the opening of its first multi-user warehouse in Myanmar, last week. The company has invested approximately K1.58 billion (€1 million) in the facility located in Dagon Seikkan Industrial Zone in Yangon, and is targeting to add more than 200 full-time employees to its team by 2021. “Our investment in Myanmar showcases our commitment to ensure that we are consistently offering the best end-to-end logistics solutions to customers in the region, to help them capitaliwe on growth opportunities. Over the years, we have witnessed tremendous growth in Indo-China including Myanmar, and have scaled our offerings accordingly to meet our customers’ needs. Today, our customers can count on us to provide a full suite of integrated end-to-end supply chain solutions, pegged to the highest global standards of excellence,” said Kevin Burrell, CEO DHL Supply Chain, Thailand Cluster (Thailand, Vietnam, Myanmar and Cambodia).
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  Two days workshop on Yangon Region MSME Action plan was held in Yangon with the aim to develop MSME in most of small, medium and large enterprises in Yangon

  Central MSME Agency and MSME Agency Yangon Region meeting was held in Yangon in conjunction with MSME Action Plan Workshop on Wednesday. Yangon Region Chief Minister U Phyo Min Thein delivered an opening speech at the meeting which was also attended by Deputy Minister for Commerce U Aung Htoo, officials and representatives. The workshop focuses on implementation of MSME Action Plan in Yangon Region where most of the SMEs of the country are operating. The MSME Action Plans have been drafted for 13 Regions and States, and it needs to draft for Yangon and Sagaing Regions.
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  The number of foreign tourist arrival into Myanmar increased more than 1.3 million from January to September this year

  The Ministry of Hotels and Tourism recently released data showing that from January to September this year, more than 1.3 million foreign tourists visited Myanmar. This represents 390,000 more visitors or a 41 percent rise compared to the same period last year The ministry said the increase can be attributed to more visitors coming from Asian countries, such as Japan, South Korea and China, which have been the targets of the government’s “Look-East policy” for tourism. Tourists from China, Japan and South Korea have increased significantly since the government relaxed visa requirements for travellers from those countries in October last year, say tourism stakeholders.
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  New Zealand Government is discussing with Myanmar Government in providing technical assistance to increase ease of doing business ranking and develop the implementation of e-Government

  New Zealand, the top spot in the World Bank’s annual ease of doing business ranking for the third year in a row, is discussing with Myanmar in order to provide technical assistance to help increase ease of doing business ranking and develop the implementation of e-Government, said a source from the Ministry of Commerce. Deputy Minister Aung Htoo of the Ministry of Commerce discussed with Mr. Stephen Marshall, New Zealand ambassador to Myanmar. Both sides focused on promotion of capacity building of the staffers and the plans to be provided to give short-term and long-term training programs to them. Myanmar managed to carry out changes in five fields. Myanmar escaped from the 20th ease of doing business ranking. There are many fields left to develop its scores, according to “Doing Business 2020 and Way Forward” at Sule Shangrila Hotel on November 1. Myanmar took the position of 165 in the World Bank’s annual ease of doing business on October 24.
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  Myanmar Government provided a strong legal framework which will require the disclosure of beneficial owners of companies involved in the extractive sector

  The Myanmar President’s Office, on October 2, issued a notification providing a strong legal framework that requires the disclosure of beneficial owners of companies involved in the extractive sector. Notification No. 104/2019 confirms the mandate of the Beneficial Ownership Task Force to make decisions regarding ownership disclosures and empowers the Directorate of Investment and Company Administration (DICA) to implement them. The notification also paves the way for 158 companies and 5 state-owned enterprises operating in Myanmar’s oil and gas production and transportation, mineral, pearl, jade and coloured gemstone industries to disclose their true owners by January 1, 2020, setting an important precedent in the country’s efforts to increase transparency in its natural resource sector.
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  The natural gas power stations in Yangon Region maintained to generate at full capacity

  Deputy Minister for Electricity and Energy U Khin Maung Win inspected natural gas-fired power stations in Yangon Region on 10 November. The Deputy Minister first visited inspect Hlawga Natural Gas Power Station in Mingaladon Township. Officials from the power station explained to the Deputy Minister about the particulars the power station, annual power generation status, maintenance works conducted, power distribution through the national grid, upgrading and modification of the power plant by Golden Green Energy Co, Ltd and sub-station upgrade works conducted with JICA loan. The Deputy Minister then inspected the Control Room, GIS E-house, upgrading work of 33 kV Switchyard with Gas Insulated Switchgear (GIS), power generation from 50 MW MCP power station and power distribution plan.
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  The Central Bank of Myanmar (CBM) will start issuing the third round of foreign bank licences next year

  In a move to further liberalise the financial services sector, the Central Bank of Myanmar will start issuing the third round of foreign bank licences from next year allowing overseas lenders to open subsidiaries in the Myanmar market, Dealstreetasia reported. Foreign banks can apply for licences to set up either a branch or a subsidiary. To secure a subsidiary licence, foreign lenders will be required to maintain a minimum paid-up capital of $100 million. Banks will be allowed to operate both onshore wholesale and retail banking, with the latter scheduled to start from January 2021.