Myanmar confidence still strong

For the first time since 2012, consumers in the region are not optimistic about the immediate future, according to a MasterCard report titled “Consumer Confidence (H2 2015)”.

However, Myanmar, Vietnam and India are extremely optimistic in their outlook for the next six months.

“A number of emerging markets are bucking this trend, namely Myanmar, Vietnam and India, which are all continuing to see strong economic growth,” Eric Schneider, head of Asia-Pacific at MasterCard Advisors, said recently.

 

Record FDI in 2015-16

Foreign direct investment into Myanmar reached a record high in the 2015-16 fiscal year, at US$9.48 billion (Bt332 billion), according to data compiled by the Directorate of Investment and Company Administration.

Myanmar received $8 billion in FDI in 2014-15, compared with $4.1 billion in 2013-14.

The oil and gas sector attracted the biggest investment last fiscal year ($4.82 billion), followed by transport and communication ($1.93 billion) and manufacturing ($1.06 billion).

Singapore, which put $4.3 billion into 55 projects, topped the list of foreign investors, followed by China, Myanmar’s biggest trading partner, which invested $3.3 billion.

Investment from Thailand was only $236.74 million with 12 projects, against $165.7 million in the 2014-15 fiscal year and $529.1 million in the 2013-14 fiscal year.

 

$3 bn invested in hotels and tourism

As of last month, combined domestic and foreign investment in the country’s hotels and tourism sector since 1988 exceeded $3 billion, according to the Directorate of Investment and Company Administration.

Of the total, foreign investment in 63 projects amounted to almost $2.5 billion. Domestic investment in 94 projects totalled $620 million.

One foreign firm and 39 joint ventures have also poured investment into the tour business.

 

US offers help on peace process

US Ambassador Scot Marciel said Washington would help to end Myanmar’s many civil wars, according to representatives of ethnic armed groups, who recently met him in Yangon.

The new ambassador met Colonel Khun Oakkar from the Pa-Oh National Liberation Organisation, who said it was a good sign that the US was showing an interest in the peace process.

“He said he would help the peace process and we presented our position. 

“He promised that US government policy towards the peace process would be consistent,” Padoh Saw Kwe Htoo Win, general secretary of the Karen National Union, said recently.

 

Farmers promised larger loans, sector reforms

The government will increase loans to paddy farmers to 150,000 kyat (Bt4,461) from 100,000 kyat in the coming growing season, according to Soe Tun, vice president of the Myanmar Rice Federation (MRF).

On April 7, Aung Thu, minister for agriculture, livestock and irrigation, told the MRF that the government would increase agricultural loans and was thinking about turning the Myanmar Agricultural Development Bank (MADB) into a public bank.

He said the association suggested a two-month loan extension.

Plans were underway to grant loans to commercial crops growers and other agribusinesses by turning the MADB into a corporation, according to the Myanmar Economy and Social Reform Framework for 2012-2015, presented by economist Zaw Oo.

MADB has granted agricultural loans of more than 1 billion kyat to farmers. It also grants loans for other crops.

“The farming sector faces a labour shortage. 

“Heavy burdens of loans, high interest rates and high production costs should be tackled in an urgent manner,” said Chit Khaing, the MRF’s president.

 

Govt pressured over EU rice exports

The Myanmar Rice Federation has urged the new government to hold bilateral negotiations on rice exports with EU countries.

Representatives held talks with the ministers of agriculture and commerce on refreshing trade strategies that still see 90 per cent of rice exported overland, mainly to China.

Until March 25 in the 2015-16 fiscal year, Myanmar earned more than $511 million from exports of 1 million tonnes of rice and 360,000 tonnes of broken rice, according to the Commerce Ministry.

Myanmar has secured an EU “generalised scheme of preferences” deal to export to the bloc. 

During the first nine months of the 2015-16 financial year, the country’s trade with the EU exceeded $500 million, with Myanmar earning more than $256 million, according to the ministry. 

Trade with the EU has been increasing annually.

 

DICA dumps 1,355 firms

The Directorate of Investment and Company Administration this month abolished the registration of more than 1,300 domestic and foreign companies.

The move came after 1,095 domestic companies and 260 foreign firms failed to contact the DICA. At the beginning of last October, the DICA told companies to report for tax scrutiny.

More than 45,000 domestic companies, including 200 public businesses, in excess of 3,200 foreign firms and around 80 join ventures are registered with the DICA.