Despite challenges, Myanmar economy has prospects

                Myanmar remains one of the fastest growing economies of the world. According to the World Bank, growth will recover to 7.8 percent this year while the ADB projections suggest that Myanmar’s economic growth could reach 8.4 percent in 2016-17, which is the highest in Asia and the Pacific. The World Bank said economic prospects are still strong so long as the government can educe the budget deficit and increase spending on public services and growth to offset the impact of lower commodity prices. According to the World Bank, the following are the priorities for Myanmar: To continue to establish a well-functioning exchange rate system, to improve access to electricity and to reform state-owned banks to promote transparency, stability and competitiveness in the financial sector. The World Bank also said inflation should ease to an average of 8.5 percent , while the budget deficit is likely to average 3.5 percent of GDP over the medium term as government revenues increase. Encouragingly, the Deputy Minister for Planning and Finance said that the new government would be accountable and responsible, and will continue to seek economic development and that his Ministry would try to improve its tax intake from all sectors.                                                                                                                                                                                                                                                                               1 June 2016

The Myanmar Thilawa SEZ Holdings Limited (MTSH) becomes a listed company on the YSX

                Today the Myanmar Thilawa SEZ Holdings Limited (MTSH) becomes the second company to list on the Yangon Stock Exchange. With the listings, the company’s existing shares will become free to trade electronically.

                The MTSH was established in 2013 by a nice-shareholder consortium and chaired by U Win Aung, Chairman of the UMFCCI while CB Bank Chair U Khin Maung Aye is a vice-chair.

                The MTSH had 16,720 shareholders as of November 2015 and the directors and executive officers of the company held 46 percent of total shares as December 31, Serge Pun, Chair of FMI, is also a shareholder in MTSH.

                                                                20 May 2016

Three state-owned banks removed from the US blacklist of Specially Designated Nationals (SDNs)

            The United States has removed, with effect from 18 May 2016, three Myanmar state-owned banks from its blacklist of specially Designated Nationals and added two military-owned leaders to a general licence, allowing financial transactions with those banks.

            It also extended and expanded a general licence allowing transactions that go through ports and airports owned by or connected to SDNs or entities.

            As aq result of amendments to the us sanctions against Myanmar, the Myanma Economic Bank, Myanmar foreign Trade Bank, and Myanmar Investment and Commercial Bank are sanction-free now. Due to these amendments, financial transactions between the US and Myanmar may become easier though it may not happen in the immediate future.

                                                            19 May 2016

Asian Development Bank ( ADB)  sees 8.4 growth and falling inflation for Myanmar

           Rising economic growth and three successsive years of falling inflation were among the highlights from the ADB's 2016 predictions for Myanmar.According to Peter Brimble ,the ADB's country specialist for Myanmar ,the economy of Myanmar will manage 8.4 percent growth in this fiscal year ,as the garments and tourism sectors perform well and agriculture rebounds. The ADB expects growth to slow only slightly to 8.3 percent in 2017.

          The ADB had projected inflation for the 2015-16 fiscal year to clear 12 percent..Mr.Brimble said,"there was a noticeable drop in mothly inflation figures  in January and February . He also added that we are seeing something relatively positive such as the stable Kyat ( Myanmar currency) and decrease in the prices of agricultural products. The ADB now projects three successive years of falling inflation, which it expects to drop 9.5 percent this coming fiscal year and then to 8.5 percent in 2017.The ADB expects the current account deflict to improve from 8.9 percent of GDP in 2015 to 8.3 percent this year and then to 7.7 percent in 2017.

                                                                    1April 2016

The Myanmar Investment Commissiom (MIC) approves 48 new investments at its final meeting

                The Myanmar Investment Commission (MIC) approved 48 new investments at its final meeting on 25 March 2016 before the new government takes office. Included among the approved projects are those of some companies which are the members of the Myanmar Investors Development Association (MIDA). They are the Kaung Myanmar Aung Shipping Company , which received permission to build a wharf and supporting facilities in Seikkan township of Yangon,  the New City Development Public Co., Ltd., which had approval to build a light industrial Park in Yangon Reigion's East Dagon township,the Kaytumadi Development Public Co.,Ltd., which had approval to build two further industrial parks on 1311 acres and 235.54 acres respectively in Bago Region's Taungoo, and the Hantharwady Development Public Co., Ltd., which had approval to build a large eco-resort and high-end housing project on 2455.77 acres in Bago Region.

                                                                                                                                                  30 March 2016