Sustaining Progress and Minimising Risks in Myanmar
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Myanmar Business Today March 13-19, 2014 mmbiztoday.com mmbiztoday.com MYANMAR’S FIRST BILINGUAL BUSINESS JOURNAL March 13-19, 2014 | Vol 2, Issue 11 6XVWDLQLQJ3URJUHVVDQG0LQLPLVLQJ5LVNVLQ0\DQPDU How to overcome emerging market volatility in Myanmar’s future Dan Steinbock ṘFHUHQWDOUDWHV But could the recent emerging fter half a century of iso- market volatility sweep across lation, Myanmar’s im- the country? Amediate challenge is to sustain reforms, boost foreign Catch-up in the investment and diversify its post-globalisation era industrial base. Unlike other In the next 5-10 years, Myan- Asian tigers, it must cope with mar has potential to evolve into a far more challenging interna- a “mini-BRIC”; that is, a rapidly tional environment. growing large emerging econo- Recent headlines from My- my – but only if it relies on the anmar have caused unease in right growth conditions and can the United States, Europe and sustain the momentum. Japan. While the controversies 6LQFH WDNLQJ ṘFH3UHVLGHQW are social by nature, they have Thein Sein has introduced a indirect economic implications. VODWHRIUHIRUPVDQGVLJQL¿FDQW First, the aid agency Medecins ly improved Myanmar’s ties Sans Frontiers (Doctors With- with Washington and European out Borders) was ordered to countries, which has unleashed Tun/Reuters Soe Zeya cease operations as the Presi- DUDSLGLQÀRZRI:HVWHUQWUDGH GHQW¶V ṘFH DOOHJHG WKDW WKH and investment. The advanced MSF was biased in favour of economies are fascinated with Rakhine’s Muslim Rohingya Myanmar, its population of 60 minority. Then, President him- million people and the last re- self asked parliament to consid- maining emerging economy. In 2012/13, Myanmar’s economy grew at 6.5 percent. Fuelled by increased gas production, services, construction, foreign er an intermarriage law, which Economically, Myanmar lost investment and strong commodity exports, it is on track to grow 6.9 percent in the medium-term. appears to call for the kind of half a century of progress, due to FRQ¿GHQFHLQWKHN\DW Myanmar Summary onfhtjynfjynfqdkif&m0ef;usifwpf&yf&Sd restrictions that opposition its geopolitical insulation. With Myanmar is larger than aejcif;yifjzpfonf/ leader Aung San Suu Kyi has underdeveloped institutional France in size, but has a young &mpkESpf0ufeD;yg; urÇmhEdkifiHrsm;ESifh vmrnfh ig; ESpfrS q,f ESpftwGif; condemned. capabilities, poor revenue per- labour force, abundant natural tquftoG,fjywfawmufí oD;jcm; jrefrmEdkifiHonf pD;yGm;a&;zGHUNzdK;wdk;wuf Meanwhile, the global agri- formance has led to persistent resources, including natural &yfwnfcJhaom jrefrmEdkifiHonf jyKjyif culture giant DuPont launched ¿VFDOGH¿FLWVZKLFKKDYHEHHQ gas, copper, timber and gem- rItwGuf tvm;tvmaumif;rsm;pGm ajymif;vJrIrsm;udk jyKvkyfvmcJhNyD; a&&Snf its business operations in the ¿QDQFHGE\WKHFHQWUDOEDQN$V stones. In 2012/13, Myanmar’s &Sdaeovdk ppfrSefaom zGHUNzdK;wdk;wufrI country. Indeed, as foreign DUHVXOWYRODWLOHLQÀDWLRQDYHU economy grew at 6.5 percent. wnfwHhzGHUNzdK;aprnfh jyKjyifajymif;vJrIrsm; tajctaersm;ay:aygufvmrSom xdk companies have been rushing aged 23 percent between 2001 Fuelled by increased gas pro- twGuf pdefac:rIrsm;udk &ifqdkifaeovdk tajctaeudka&&SnfwnfwHhEdkif&eftwGuf to Myanmar, the commercial and 2010, which hit the poor duction, services, construction, tjcm;tm&Susm;rsm;ESifhrwlonfhtcsuf capital Yangon is struggling hard, undermining domestic Contd. P 12...Ī6XVWDLQLQJī Contd. P 12...Ī6XVWDLQLQJī with Southeast Asia’s highest rSm jrefrmEdkifiHonf ydkrdkpdefac:rIrsm;&Sdae A journey to remember! 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Promotion seats are limited and may not be available on all flights, public holidays, school breaks and weekends. A payment processing fee is applicable to all payments made via credit, debit or charge cards. Our other terms and conditions of carriage apply. **The fourth flight to Bangkok operates daily starting from 30 March 2014 2 LOCAL BIZ Myanmar Business Today March 13-19, 2014 mmbiztoday.com %XVLQHVV1HZVLQ%ULHI Over 10,000 local companies yet to pay taxes eralised System of Preferences) trading privileges, local MYANMAR’S FIRST BILINGUAL BUSINESS JOURNAL A total of 10,670 local private companies have not media reported, quoting Myint Soe, chairman of My- SDLGWD[HVIRUWKH¿VFDO\HDUHQGLQJRQ0DUFKDQDQ anmar Garment Manufacturers Association. Garment Board of Editors nouncement by the Internal Revenue Department said. exports in Myanmar are expected to reach $1.5 billion Editor-in-Chief - Sherpa Hossainy in 2014, the report said. Email - [email protected] Ph - 09 42 110 8150 0\DQPDU¶VULFHH[SRUWVIDOOWKLV¿VFDO\HDU Editor-in-Charge - Wai Linn Kyaw Myanmar has so far exported about 1 million tonnes Myanmar ends cotton export ban Email - [email protected] RIULFHWKLV¿VFDO\HDUHQGLQJRQ0DUFKGRZQIURP At the request of dealers, the Ministry of Commerce Ph - 09 40 157 9090 over 1.4 million tonnes in 2012-2013, local media ZLOODOORZFRWWRQH[SRUWH̆HFWLYH0DUFKIRUWKH¿UVW quoted Commerce Minister Win Myint as saying. The time in over 20 years, local media reported, citing in- Reporters & Writers unstable political situation in Thailand and the fall in dustry sources. The ban on the export of cotton has Sherpa Hossainy, Kyaw Min, Wai Linn Kyaw, demand from China had some impacts on Myanmar’s made cotton growers incur losses, the daily added. Shein Thu Aung Phyu Thit Lwin, Daisuke Lon, rice exports this year. Yasumasa Hisada, Zayar Phyo, Pann Nu, Nwe Zin Myanmar adds emergency medical Authorities permit 166 hotel projects in 2 Shwe Zanaka Company will provide emergency Art & Design months healthcare services for tourists visiting Kyaiktyo, Mon Zarni Min Naing (Circle) Myanmar authorities have permitted 166 new hotel VWDWHH̆HFWLYH$SULODQGZLOOH[SDQGWKHVHUYLFHXOWL Email - [email protected] projects with over 7,800 rooms at major tourist spots in mately to other popular tourist sites in Myanmar. En- Ph - 09 7310 5793 the past two months to cater to growing tourist arrivals, dorsed by the Ministry of Tourism, the company will Ko Naing Email - [email protected] local media reported quoting Aung Zaw Win, director cooperate with ambulance services, the Ministry of Ph - 09 730 38114 general at the Hotels and Tourism Ministry. +HDOWKDQGORFDOKRVSLWDOVWRR̆HUPHGLFDOVHUYLFHVIRU foreign visitors. DTP US may grant GSP on 5,000 Myanmar prod- May Su Hlaing ucts soon DICA says no to full foreign investment in tour- US may grant Generalised System of Preferences ism Translators (GSP) trading privileges on about 5,000 Myanmar The government has no plans to permit full foreign Shein Thu Aung, Phyu Maung, products in April or May, local media reported, citing investment in Myanmar’s tourism sector, according to Wai Linn Kyaw Maung Maung Lay, Vice Chairman of the Federation the Directorate of Investment and Companies Adminis- of the Chambers of Commerce and Industry. Myanmar tration (DICA). Joint ventures in tourism sector will be Advertising is entitled to GSP for 5,000 items of goods as it is one allowed only with Myanmar citizens and DICA is soon Seint Seint Aye, Moe Hsann Pann, Htet Wai Yan, Zin Wai Oo Advertising Hotline - 09 420 237 625, 09 4211 567 05, of the least developed countries, and marine products, going to release an announcement stating which in- 09 31 450 345 pulses, beans, gems and handicrafts will be on the top dustries will or will not be permitted for joint ventures, Email - [email protected] of these items, Lay said. Aung Naing Oo, director general of DICA, said. Myanmar to allow import of alcoholic drinks Subscription & Circulation Myanmar Summary Aung Khin Sint - [email protected] Liquor, beer and wine will soon be allowed to be im- 09 20 435 59 ported into Myanmar after ongoing talks among respec- jynfwGif;yk*¾vduukrÜPDpkpkaygif; 10670 ckonf rwfv 31 Nilar Myint - [email protected] tive government departments and chambers of com- 09 4210 855 11 PHUFH¿QDOLVHWD[HVDQGGXWLHVORFDOPHGLDUHSRUWHG &ufaeYwGif ukefqHk;rnfh b@ma&;ESpftwGuf tcGefrsm; ray;aqmif Khaing Zaw Hnin - [email protected] citing Commerce Minister Win Myint. Overtaxing can &ao;aMumif; jynfwGif;tcGefOD;pD;Xme\ xkwfjyefaMunmcsuft& 09 4211 30133 lead to smuggling, while under-taxing can encourage od&onf/ ,ckb@ma&;ESpftwGif; jrefrmEdkifiHonf qefrufx&pf IUHHÀRZRIGULQNVLQWRWKHFRXQWU\:LQ0\LQWVDLG Managing Director wefcsdef wpfoef;eD;yg;wifydkYcJhNyD; 2012-2013 ckESpfwGif qefruf Prasert Lekavanichkajorn