Next Year Inflation Rate Estimated to be only 5.91%
In spite of the current depreciation of Kyats and increase in consumer goods, estimated inflation rate for 2018 – 2019 fiscal year was only 5.91% according to Ministry of Planning and Finance.
In 2017 – 2018 fiscal year, average inflation rate was estimated to be 7.9%. In six-month interim period of 2018, inflation rate was estimated to be 4.89%. “All the sectors such as manufacturing, consumption and distribution of goods will be cooperated to handle the inflation rate. The average inflation rate was estimated to be 5.91% in 2018 – 2019 fiscal year,” said Union Minister of Planning and Finance Ministry.
With the dollar exchange rate at unprecedented levels, Myanmar Insider expects the actual inflation rate to be significantly higher at double-digit levels.
Investors from Asian Countries Still Interested despite the Situation in Rakhine State
According to Myanmar Investment Commission (MIC), although investment from western countries are stagnant due to the situation in Rakhine State, investment from Asian countries remains stable.
“Foreign investment from western countries slow down because the crisis in northern Rakhine State gave Myanmar a negative image and economy is stagnant in the rainy season,” said Than Aung Kyaw, Deputy Director General of Directorate of Investment and Company Administration on August 29, 2018. According to Myanmar Investment Commission, total foreign direct investment (FDI) in the Thilawa Special Economic Zone has reached approximately $150 million between April and July of 2018.
MIC expects that when Thilawa SEZ is completed, about 150 foreign companies will have invested approximately $1.7 billion. MIC expected foreign direct investment to reach $3 billion in this year’s six-month interim budget. But the actual foreign direct investment for five months from April 1 to August 31 has reached only $1.4 billion, according to MIC. MIC expects foreign direct investment to reach $5.8 billion in the 2018 – 2019 financial year.
More than 1,560 New Companies Registered in MyCo within One Month
The number of new companies that registered in MyCo according to Myanmar new Company Law, amounted to more than 100 companies every day and more than 1,560 companies within one month of the launch of MyCo, said Myo Min, Director of the Directorate of Investment and Company Administration. Companies can register by submitting all of the required registration documents to the registration officer via the website. They can also submit annual reports, view the online payment methods, obtain information and notifications from the registration officer and submit company information. The MyCo website has been launched since August 1, 2018.
“The advantage of the amended act is that companies do not need to re-register when their license expires. And now companies only need to submit their actions online which we will make available to foreign investors when they are inquiring for potential partnership,” said Aung Naing Oo, General Director of Directorate of Investment and Company Administration (DICA).
“The increasing number of new companies registered show the prospects of running many new businesses. Every country always pay attention to establishing new businesses. If the number of new companies registered decreases, the economy of the country will go down. But now, more than 100 companies register every day,” said Than Aung Kyaw, Deputy Director General of the Directorate of Investment and Company Administration.