Domestic gold prices are now at their highest levels ever at K10 lakh a tical, according to Myanmar Gold Entrepreneurs Association. On September 19, the opening price for one tical of high purity gold in Yangon Region was K 1,012,000. That had increased to K 1,018,000 by noon, said U Win Myint, secretary of Yangon Region Gold Entrepreneurs Association. A tical is equivalent to 16.6 grams.

The current gold price is the highest in the country’s history and comes on the back of rising dollar prices compared to the Myanmar kyat, said U Kyaw Win, owner of U Hton Goldsmith & Jewellery. International gold prices are not increasing but the Myanmar gold price is going up because of the high dollar exchange rate, and domestic gold prices will continue to be volatile as long as the dollar continues appreciating, he said.

As a result of the high price, domestic gold sales have trickled to a halt. At present, the supply of gold is high but demand has fallen substantially.

Source: Myanmar Times

The Myanmar Global Investment Forum, jointly-organised by the Myanmar Investment Commission and Hong Kong-based Euromoney Institutional Investor (Asia), was held at Myanmar International Convention Centre-II, in Nay Pyi Taw on 11th and 12th  September.

The forum was attended by Union Ministers Dr. Pe Myint, U Win Khaing, U Thant Sin Maung, U Han Zaw, Hluttaw MPs, officials from the related departments, representatives from Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry and Euromoney Institutional Investor (Asia), local and foreign entrepreneurs and officials.

Initially, Chief Executive Officer Mr. Tony Shale of Euromoney Institutional Investor (Asia) delivered an opening address. Then, Union Minister for Electricity and Energy U Win Khaing said that in 2016 Myanmar Government laid down the national economic policy which aims to foster sustainable development in Myanmar, which is inclusive and people-centered.

The new Investment Law was enacted on 18 October, 2016 and its subsequent rules were prescribed on 30 March 2017. Together with the new Myanmar Investment Law, the new Companies Law represents an attractive and effective platform on which foreign and local investors can develop new businesses, create employment and contribute to Myanmar’s growing economy, said the Union Minister. Since 2016, the New Government gave priority fast development infrastructure, especially roads and electricity, for both domestic requirement and support investment needs, said U Win Khaing. Similarly, Dr. Sean Turnell, Director of research for Myanmar Development Institute, Special Economic Consultant to the State Counsellor, also delivered a key-note address.

As per agenda, the panel discussion titled “Infrastructure-what role can infrastructure developments play in the wider Myanmar economy, Doing Business in Myanmar-practical advice and exploring current routes into the market, Banking, Finance and Insurance-evolving to meet new challenges, Fintech and Microfinance-solutions for a digitizing economy ,Agriculture-reforming the industry and growing production towards export , Energy- harnessing resources and improving infrastructure, Start Ups-sourcing finance and market opportunities, Tourism-unlocking Myanmar’s potential, and Education-improvements to bridge the skills gap” are conversed by resource persons and representatives from different Ministries respectively.

The second day of Forum continued on 12^th September at International Convention Centre-II, in Nay Pyi Taw.

Source: Myanmar Alinn

U Ye Min Aung, Vice President of the Union of Myanmar Federation of Chambers of Commerce and Industry submitted a 12-point suggestion to the private sector development committee led by Vice-President U Myint Swe. The move aims to deal with the instability of currency exchange rates systematically by the Union government and the Central Bank of Myanmar.

U Ye Min Aung suggested the government should control quota, tariff rate quota, minimum access, and standard, and specifications, tax and customs system for imported goods. His suggestion also includes the expansion of trade financing for overseas banks, the implementation of bilateral currency swap schemes with major trading partners such as the use of Chinese Yuan and Thai Baht for trading with those countries, the development of interbank currency market under the supervision of the central bank and the formation of working groups for the rapid establishment of import-export public bank with the inclusion of local and foreign shareholders.

Source: Daily Eleven

U Zaw Min Win, President of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) submitted the four-point suggestion to Myanmar State Counsellor Daw Aung San Suu Kyi. On August 27, Myanmar State Counsellor Aung San Suu Kyi held a talk with local entrepreneurs at Nay Pyi Taw.

The four points are: export promotion, investment promotion, import-substitution and reducing heavy reliance on dollar. For the effective implementation of four major points and sustainable development of businesses, the relations of agricultural, industry, trade and economic policies is crucial. In doing so, views, experience and suggestions of the private sector are to be taken into account. The government needs to a policy discussion platform where the government and private businesses can hold regular meetings.

Source: Daily Eleven

In 2016-2017 FY, the Central Bank of Myanmar (CBM) loaned over Ks-693 billion to seven private banks at the request of local banks. This may increase the amounts of revolving money and lead to inflation, the Joint Public Account Committee (JPAC) suggests. In 2016-2017 FY, the CBM granted temporary loans to seven private banks with the term not exceeding 92 days. The CBM calculated the daily interest rate with a 10-per-cent interest.

Union Auditor-General U Maw Than said the disbursement of temporary loans to private banks can help support the circulation of money. Ayeyarwady Bank stood first with a loan of Ks-225 billion, Myanmar Apex Bank, second, with over Ks-179 billion and Kanbawza Bank, third with Ks-130 billion. Granting temporary loans to private banks can help smooth the circulation of money in private banks and the CBM get interest incomes, the Joint Public Account Committee has warned.

Source: Weekly Eleven

Mandalay Region topped the list of citizen investments with Ks 2,074 billion in 2017-2018 fiscal year, said U Thaung Tun, chair of Myanmar Investment Commission (MIC). At the session of Union parliament in Nay Pyi Taw on August 30, U Thaung Tun said submitted the MIC’s report from April 1 to March 31, 2017.

In 2017-2018 FY, Mandalay Region led the list of citizen investments with Ks 2,074 billion, followed by Yangon region with Ks-851 billion and Bagon region with Ks 319 billion, he said. In 2017-2018 FY, the construction sector stood first with Ks-1,506 billion, the transport and communications, second, with Ks-544 billion and other service sector, third, with Ks-497 billion.

Source: Weekly Eleven

The Yangon regional government signed a Memorandum of Understanding (MOU) with Myanmar Wooree Co, a South Korean firm, to establish an industrial project on July 11. The regional government plans to construct this industrial project on the western side of Yangon River and will plan to connect that with the proposed Dala Bridge, located in Dala township. Based on the study, different parties will determine the site area, types of investment and other details. Korean investors are highly interested to invest in Dala Township.

The MOU is merely the first step. Wooree is required to undertake a feasibility study. It will also be required to undertake an Environmental Impact Assessment (EIA), which is legally required by Myanmar law.

Source: Myanmar Times

Myanmar and Thailand yesterday signed several agreements which further cemented ties between the two countries. These included a bilateral airline agreement, inked at the Myanmar Foreign Minister’s office, as well as a second agreement to improve an existing shrimp breeding zone with the aim of facilitating development in Rakhine State. The airline agreement will replace the existing agreement, which was inked in 1969. In the new agreement, rules governing the aviation sector, including airlines and airline service providers were amended or included.

Thailand also committed to providing financial assistance for the development of Rakhine State. It will also provide B34 million to assist in the upgrading of the Yay Chan Pyin shrimp breezing zone in Rakhine. With yields expected to improve by incorporating modern farming techniques, the government hopes the shrimp produced can also serve as food and nutrition for local residents.

Source: Myanmar Times

Amid criticism of the government from the business community over sluggish growth and a lack of economic direction, Mr. Sean Turnell, the economic adviser to Myanmar State Counselor Daw Aung San Suu Kyi, addressed about Myanmar economy in “Myanmar’s Economy 2018: progress, problems, possibilities” seminar.

According to him, the main problems include bureaucratic sclerosis across government departments, the current account deficit, and structural problems in the banking system, weak infrastructure, the crisis in Rakhine State and global economic uncertainty due to the U.S.-China trade war.

As for economic progress, he highlighted that most macroeconomic indicators are stable and headed in the right direction, citing examples such as continued annual gross domestic product (GDP) growth, the inclusion of more people in the financial system, a stable inflation rate and decreased reliance on the practice of printing money to pay down budget deficits.

Although UMFCCI short-term business sentiment survey highlighted a decline in business confidence, Turnell pointed that the Myanmar Sustainable Development Plan (MSDP) is on the way, which will give the economy a fiscal boost and liberalize key sectors, particularly the financial sector, to stimulate economic growth. As another example of NLD government’s economic achievements, he cited the fact that the renewal of the China-backed Kyauk Phyu project agreement had not resulted in Myanmar owing a single dollar to China.

Source: Irrawaddy

A two-day 2nd B4B Insights Forum hosted by UMFCCI held on 25 and 26 August discussed matters from various sectors; tourism, logistic service, industrial enterprises, motor vehicle business, food chain, garment business on Cutting-Making and Packaging basis, power supply and distribution, health, information technology, exchange rate. Additionally, experts also discussed existing laws, by-laws and policies. Forum mainly highlights on current economic climate and meeting outcome is aimed to bring about benefits for both public and private sector.

Moreover, the findings of Myanmar Business Sentiment Survey jointly conducted by Private Sector Development Committee, Myanmar Marketing Research and Development Limited (MMRD) and UMFCCI were also explained by U Moe Kyaw, chairman of MMRD at the 2nd B4B Insights Forum. This year, 2nd Quarter Business Sentiment Survey was collected from a total of 2,535 businessmen. Those enterprises which answered the survey are engaged in manufacturing, service and export/import sectors.

Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) will also submit the suggestions report resulted from the 2nd Quarter B4B Insights Forum to the government, according to UMFCCI.

Source: Global New Light of Myanmar