Thailand is set to overhaul its tax system by 2025, proposing taxation of residents’ worldwide income and introducing a 15 percent global minimum corporate tax for multinationals, aligning with international standards. These changes aim to broaden the tax base but may impact foreign investment and compliance costs.

Thailand is preparing to overhaul its taxation framework with a proposed amendment to Section 41 of the Revenue Code, aiming to tax the worldwide income of residents. Under this draft legislation, individuals who spend 180 days or more in Thailand would be required to pay taxes on their global earnings, irrespective of whether the income is transferred to Thailand.

This marks a significant departure from the current system, which taxes foreign income only if it is brought into the country within the same calendar year it is earned. The proposal, expected to take effect in 2025, has drawn mixed reactions.

While it reflects Thailand’s alignment with international tax norms, concerns are mounting among expatriates and foreign chambers of commerce over its potential impact on long-term residency and foreign direct investment.

As discussions around the draft legislation unfold, it is crucial to explore its implications for Thailand’s economic landscape, expatriate community, and global competitiveness.

Changes in 2024: A shift in taxation of foreign-sourced income

On January 1, 2024, a new tax rule was introduced, altering the way foreign-sourced income is taxed. Under the previous tax system, individuals in Thailand who were tax residents (spending 180 days or more in the country) were only taxed on their foreign income if it was brought into Thailand within the same year it was earned.

However, under the new rule, Thai nationals and foreigners who have been in the country for at least 180 days will be taxed on all foreign income, even if it is not brought into Thailand within the year.

This policy change significantly expands the scope of taxable income for residents, including income from employment, business operations, and passive income such as interest, dividends, and rental income from foreign sources. These new rules represent a marked shift from the current approach, making it important for individuals residing in Thailand to reassess their tax obligations, particularly about their overseas earnings.

These changes signal a broader move toward aligning Thailand’s tax policies with global standards, but they also raise concerns about the potential impact on foreign investment and expatriate residents who may now face higher tax liabilities on their global income.

ကိုးကား- ASEAN Briefing

Company says higher duties on Chinese cranes would just increase costs for American ports. The US ports association agrees

A leading Chinese manufacturer has taken the rare step of publicly criticising US plans to hike tariffs on made-in-China cranes, warning that the proposal would only raise costs for American ports.

Shanghai Zhenhua Heavy Industries – China’s top producer of container gantry cranes – denied it was a threat to US national security in comments submitted to the Office of the US Trade Representative (USTR) on Monday, adding that levies on Chinese products would not help revive American manufacturing.

China’s ship-to-shore cranes “pose no alleged cybersecurity risk, and the proposed tariffs are not a legitimate remedy”, it said in the statement.

The company’s comments come amid growing industry backlash against the US trade office’s proposal to slap a 100 percent tariff on Chinese-made cranes, which has also provoked criticism from a major US ports association.

USTR first proposed the levy in late April, along with new duties of 20 percent to 100 percent on containers and chassis made in China.

The measures are part of Washington’s broader push to revive US manufacturing and push back against China’s dominance in the maritime sector, which has also seen the introduction of steep port fees targeting Chinese-linked vessels.

The American Association of Port Authorities echoed those comments in its own submission to USTR, warning that the tariffs were doomed to fail due to a lack of alternatives to Chinese-made cranes in the market.

Applying the tariff “will not create a domestic crane manufacturing industry out of thin air. It will only increase costs for public port authorities,” the association said.

There are currently no American producers of ship-to-shore cranes, it noted. 

Only three non-Chinese companies are active in the international market: Japan’s Mitsui and the European firms Konecranes and Liebherr. 

But none of them have the production capacity to replace China’s market share, the association said.

Shanghai Zhenhua reportedly accounts for about 70 per cent of the global market for quay cranes, with products sold to 108 countries and regions.

The Shanghai-listed company generated about 4.8 per cent of its revenue in North America last year, down more than 30 per cent year on year, according to the firm’s financial statement.

In 2024, the administration of US President Joe Biden imposed a 25 per cent tariff on Chinese STS cranes.

US ports currently have 55 cranes on order and expect to need another 151 over the next six to 10 years. If the tariffs go ahead, they could cost America’s ports up to US$6.7 billion over the next decade, the association estimated.

The Port of Houston in Texas has eight cranes from Shanghai Zhenhua contracted for delivery in spring 2026, at a price of US$14 million each. That means the port would owe a whopping US$302.4 million in taxes if it is forced to pay the full tariffs, the association said.

Though the AAPA said it strongly supported efforts to reshore crane manufacturing, it added that it would take time to rebuild the industry due to a range of factors, including higher domestic steel prices, a shortage of skilled American welders, and a shortage of supplies of key crane components.

The port association suggested that the US Congress pass a bill establishing a tax credit to encourage domestic manufacturing, and called on USTR to hold off on any further tariffs on cranes until such legislation is enacted.

It also called for a delay of one to two years in implementing the proposed 100 percent tariff and requested that cranes ordered or contracted before the proposal’s publication on April 17, 2025, be exempted.

Source: https://www.scmp.com/economy/china-economy/article/3311064/chinese-crane-maker-raises-questions-over-us-tariff-plans-not-real-remedy?module=top_story&pgtype=section

On May 12, 2025, the Trump administration announced a mutual reduction in trade measures between the United States and China. This includes not only a reduction in tariffs—bringing U.S. rates down from 145 percent to 30 percent (which is on top of sectoral and Section 301 tariffs), and Chinese tariffs on U.S. goods from 125 percent to 10 percent—but also the relaxation of the critical minerals export restrictions China put in place following “Liberation Day.”

While many details remain unresolved, this tariff rollback marks a welcome step that could help ease inflation and bolster economic prospects. However, it does not undo the significant damage already inflicted by elevated costs, disrupted supply chains, heightened uncertainty, and weakened U.S. credibility with allies. The ongoing reliance on an erratic trade policy—marked by temporary fixes, strategic inconsistency, and persistent unpredictability—continues to undermine long-term economic resilience and U.S. global leadership, while imposing avoidable costs on consumers and businesses alike.

A Step in the Right Direction . . .

First things first: Tariffs are lower today than they were yesterday, and that is undeniably a positive step. Over the medium term, this reduction should help ease inflationary pressures in the United States, improve the odds of avoiding a recession, and support the capital investment needed to compete strategically with China. Compared to where things stood just 24 hours ago, this is real progress.

. . . But Damage Has Already Been Done

While the rollback is welcome, tariffs were set at punishing levels for more than a month. U.S. firms dependent on imports were either forced to absorb these elevated costs or delay purchases altogether. This caused immediate pain for businesses and consumers and set the stage for future price spikes, potential shortages, and in the long term, lower employment and output. Recent research underscores this point, finding that U.S. tariffs, especially those enacted on Liberation Day, will reduce real income in the United States by $300 billion annually by 2028.

Tariffs Are Still Too High

Even after the temporary rollback, U.S. tariffs remain well above what most economists consider welfare-maximizing levels. A recent report published by the National Bureau of Economic Research argues that the optimal tariff structure would involve lower rates overall and a reallocation away from intermediate goods. This structure would reduce costs for domestic producers, increase the competitiveness of U.S. products in global markets, and likely lead to higher productivity and higher wages here at home. Evidence suggests that fixing just this one inefficiency in the current tariff structure could raise income considerably.

As it stands, nearly 60 percent of Trump-era tariffs target inputs used by U.S. firms—not finished goods from strategic rivals. This distorts supply chains at home while offering little strategic advantage. Even post-reduction, many of these distortions persist.

The Uncertainty Tax on the Economy

Crucially, today’s rollback is not permanent. Despite statements about a “shared interest” in reducing trade barriers, both sides agreed only to another 90-day pause. Firms remain in limbo as they try to plan long-term sourcing and investment decisions. This stop-and-start approach continues to generate instability and uncertainty which acts as a deadweight on investment. Firms will be less willing to commit capital in the United States or China if the viability of the investment hinges on the unpredictable swings of tariff policy.

This fairly obvious point is backed up by academic literature, including Handley and Limão (2017), who demonstrate that trade policy uncertainty can hurt investment as much as actual tariffs. Volatility becomes a tax on planning, especially in capital-intensive sectors like automobiles, semiconductors, and advanced manufacturing.

Credibility Is Eroding—and That’s Dangerous

The administration warned that trade retaliation would carry consequences. But after China’s counter, it appears to have emerged with a lower effective tariff rate than it faced the morning of April 2. This sequence undermines the administration’s preferred posture that it can always “out-escalate” its way to victory in trade disputes. That proposition has now been disproven, and U.S. credibility is weaker for it.

Threat-based trade policy without consistency or follow-through is not just ineffective, it is counterproductive, which is detrimental to administration’s goals and risky for everyday Americans. What happens when the administration feels the need to regain credibility by following through on a threat—regardless of the consequences?

Favoring Adversaries, Alienating Allies

Beyond credibility, the administration is draining trust from longstanding allies. While the deal with the United Kingdom reduced the cost of Land Rovers and Jaguars for American consumers, it did little for broader working-class constituencies. Meanwhile, other allies are growing frustrated with what increasingly resembles economic coercion: “Deal with us or suffer.”

This approach imposes reputational costs and undermines long-term cooperation. Freund, Mattoo, Mulabdic, and Ruta (2023) find that as the United States and China weaponize trade ties, third countries have begun to hedge. Their analysis of post-2018 trade flows show growing “policy-driven divergence,” as supply chains shift based on perceived reliability, not efficiency.

Since 2018, Japan, South Korea, and the European Union have all expanded regional trade agreements—often without U.S. involvement. If the United States continues treating allies more harshly than competitors, that trend will only accelerate.

Two Truths at Once

Like many reversals from this administration, today’s tariff cut requires accepting two truths at once. First, it is a necessary and overdue correction to a damaging policy. Second, the costs of the reversal—higher inflation, weaker investment, and strained alliances—are still unfolding.

The evidence increasingly tells a consistent story: Politically motivated tariff shocks may serve short-term goals, but they weaken long-term economic resilience, degrade institutions, and undermine U.S. global leadership. The price of unpredictability is high—and rising.

Consider the Consumer

Hopefully, this rollback signals something else: The administration may be remembering the importance of the American consumer. Since April 2, there has been a worrying drumbeat of rhetoric portraying the American people solely as producers of physical goods—implying there is no need to worry about who is able to consume them.

That message is hard to reconcile with the administration’s own campaign promises. But this change in course is an opportunity to reaffirm a basic principle: Government should improve the material well-being of its people. That means raising, not lowering, living standards.

So, to end on a somewhat hopeful note, with this pause in trade hostilities, the administration seems more open to the idea that boiling the U.S. consumer alive to bring back “traditional jobs” may not be the best path forward. That is a good thing.

Source - https://www.csis.org/analysis/understanding-temporary-de-escalation-us-china-trade-war

The procedure for Authorized Economic Operators was announced by the Ministry of Planning and Finance through Notification 21/2018 on 30 March 2018.
As stated in the Procedure for Authorized Economic Operators, an Authorized Economic Operator is a company or organization officially recognized by the Customs Department that meets the criteria outlined in this Procedure and operates within the international trade chain. The international trade chain refers to the system that includes the organizations, processes, technologies, and resources involved in transferring goods or services from the seller to the consumer.
The criteria for recognition as an Authorized Economic Operator require that a person wishing to operate as an Authorized Economic Operator must comply with the company registration requirements and the business licence regulations specified by the Ministry of Planning and Finance, Directorate of Investment and Company Administration. The period between the date of registration under the Myanmar Companies Act and the date of application for registration as an Authorized Economic Operator must be at least 3 years. The applicant must also continuously comply with the Sea Customs Act, rules, regulations, orders, instructions, and procedures. The company must publish official financial statements and reports annually from the date of its establishment. The accounting records and business-related financial information must be maintained for seven years. There must be a good record-keeping system and an effective internal control system which is acceptable to the Customs Department in maintaining financial matters, business records, systems, processes, and any issues related to the Customs service agent.
All taxes and duties imposed by the Customs Department, as well as any other taxes payable to the State, must be paid on time. The applicant must be financially sound. Before applying as an Authorized Economic Operator and before the issuance of the recognition certificate, the applicant must have no record of Customs-related offences or penalties within the past three years, must not be blacklisted, must accurately declare import and export transactions, and must have no record of economic misconduct or fraud. If prior notice is given for inspection when required, it must be possible to undergo inspection at any location.
The benefits available to an Authorized Economic Operator include the right to process Customs declarations with priority status, the right to pre-file import and export declarations before the arrival of goods, the right to obtain customs clearance without inspecting the documents or goods (except in cases involving potential risks for preventing illegal imports or exports), the right to receive priority inspection when required, the right to obtain customs services related to goods at the importer or exporter’s premises or other locations permitted by the Customs Department, the right to operate under the Deferred Duty Payment System within one month, as outlined in Section 41 of the Sea Customs Act, the right to receive the Customs Department’s recognition certificate and display the recognized logo as per requirements, and the right to enquire about Customs procedures with the Customs Department and the Authorized Economic Operators Division.
Therefore, I urge all economic operators throughout Myanmar to cease engaging in illegal trade and apply for a certificate of recognition as an Authorized Economic Operator, which offers the benefits of legal trade. This will allow them to follow the right path of legal trade and operate as “Authorized Economic Operators”.

Source: The Global New Light of Myanmar

What is scamming? How does it work? How are young people connected to it? How can we avoid scamming businesses? I am going to answer these questions, so I would like to encourage you to read it up to the end.
The word “scamming” comes from the Chinese language and is pronounced as “Zhàpiàn,” (in Myanmar “ကျားဖြန့်”). In Chinese, it means “cheating” or “fraud.” Today, scamming businesses are well known in Southeast Asia as fraud operations, mostly working online to trick people.
One important question is: Who started these scamming businesses? Since the word comes from Chinese, many people believe that scamming businesses started in China. When IT technology developed rapidly in China, these businesses also grew internationally.
Scamming businesses have different types. Some mainly target Western countries, especially rich people, retirees, and those over 40 years old. They often focus on wealthy people in America and Europe.
Scamming businesses are not simple fraud operations. They are large-scale businesses that include human trafficking, forced labour, illegal weapons trade, drug smuggling, gambling, and many other illegal activities.

Where are scamming businesses based?
Where do they operate the most? The answer is simple. These businesses are mostly found in poor Southeast Asian countries such as Cambodia, Laos, Thailand, the Philippines, and Myanmar. They set up large offices and hire workers in these developing countries.

How do they find workers?
There are two main ways. First, they attract people by offering high salaries but later force them to work. Second, they use human trafficking to kidnap people and make them work against their will. In Myanmar, most of these businesses are located in border areas. They do not operate secretly but in large, well-protected buildings.

How Scamming Businesses Operate
Understanding how scamming businesses operate is very important. It is also their biggest secret. The process includes setting up a base, collecting information, recruiting workers, starting operations, and finally running scams.

Setting Up the Base
As mentioned earlier, scammers choose poor and underdeveloped countries. They negotiate with local border authorities to establish their business. They rent land for 30 to 50 years and build strong buildings with high walls. For security, they also hire armed groups to protect their operations.
Another important need for scammers is the internet. They either use local internet services or connect to better internet from neighbouring countries. For example, reports say that scam businesses in Myanmar use internet services from Thailand.

Collecting Information
Many people think that scammers only recruit uneducated or low-skilled workers. However, this is not true. Scamming businesses use digital platforms, IT equipment, and online transactions, so they need skilled workers. Most employees have at least a high school education and are skilled in using the Internet and computers. Some scammers even hire IT experts.

Language Skills in Scam Operations
Workers in scam businesses need to speak at least two or three languages. For example, in Myanmar’s border areas, scammers can speak Myanmar and Chinese or Myanmar and Thai. News reports also confirm this.
Scamming is not just a simple fraud activity. It is a highly organized business that includes illegal activities such as human trafficking, forced labour, illegal trade, and cyber fraud. Understanding their operations helps people become more aware and avoid these dangerous businesses.

How Mid-Level Scammers Operate
Scamming businesses are not run randomly; they follow a well-organized system. Mid-level scammers play an important role in collecting information, avoiding detection, and managing fraud operations efficiently.

Collecting Information Before Scamming
Before they begin their fraud operations, scammers prepare fake bank accounts, cryptocurrency wallets, stock market accounts, and fake websites. These are used to make their scams look real and professional.
When searching for victims, scammers mainly target wealthy people from developed countries. However, there are also scam operations targeting the middle class in Myanmar and other countries. They carefully collect personal details, such as home address, name, family information, job details, and financial status, before approaching their victims.

Scammers gather this information in different ways:

• Buying personal data from businesses or authorities.

• Using online conversations (called “chatting dialogue”) to trick victims into revealing information.

• Following a scripted communication strategy, where senior scammers train employees on what to say based on the victim’s responses.

• Hiring psychology experts to analyze victim behaviour and improve scamming techniques.

• Avoiding Law Enforcement Detection

Scammers operate systematically and take precautions to avoid being caught. Their businesses generate billions of dollars, allowing them to invest in better technology, security, and well-trained employees.
For example, scammers often target retired bankers, stock investors, or foundation managers handling large donations. They study these people’s online activities and gather detailed information before making contact. Their ability to carefully research, plan, and execute fraud makes them highly organized criminal networks rather than simple scammers.

Recruitment Process in Scam Operations
Recruiting workers is a crucial part of scam operations. As mentioned earlier, scammers mainly target developing countries, poorer regions, and low-wage workers when hiring employees. They lure educated individuals with high-salary job offers and then force them to participate in scam activities.

Target Countries for Recruitment
Scammers recruit workers from China, Hong Kong, India, Malaysia, Nepal, the Philippines, Chinese Taipei, Thailand, Vietnam, Myanmar, and African nations. They reach out to potential employees through social media platforms like Facebook, Instagram, and Telegram.

Common fake job postings include:

• Translator jobs near border areas.

• Factory jobs with attractive salaries.

• Online marketing or customer service positions.
  A 2024 report revealed that there were over 500 Telegram groups dedicated to recruiting Myanmar workers into scam operations.

High Recruitment Fees
To hire workers, scammers are willing to pay huge amounts to recruiters. For example, in 2024, a single Myanmar worker could be sold to scam groups for 40,000 Thai Baht (about 600,000 MMK).
For workers from poor countries, where salaries range between K300,000 to K500,000 per month, these job offers seem extremely attractive. This is why many educated people from low-income countries fall victim to scam networks.

Scam Business Structure
Scam operations generally have three key departments:

• Technical Team – Consists of IT specialists (mainly foreigners) who manage online scams.

• Target Searching Team – Responsible for finding victims.

• Communication Team – Handles conversations with victims.

Each department has around 15 to 20 employees working systematically.

Role of the Technical Team
The technical team is mainly composed of IT professionals who operate scam activities. They create fake social media accounts on platforms like Facebook, LinkedIn, WhatsApp, and Skype using attractive photos of young women to gain victims’ trust.
They maintain these fake accounts for three to four months to make them look real. They also post random social media updates to appear legitimate. This is an ongoing task within the technical team.

Final Stages of the Scam Operation
Once the search team has found potential victims, they begin engaging them in conversation.

Using fake social media accounts created by the technical team, they initiate chats in different ways:

• Casual conversations to build trust.

• Flirtatious messages for male targets.

• Job opportunities, such as investing in new businesses or earning money by watching videos.

As the conversation progresses and the victim becomes emotionally or professionally invested, they are handed over to the communication team for deeper engagement.

Manipulation by the Communication Team

This team, consisting of around 15 people, is responsible for fully convincing the victim. They engage in carefully planned dialogues:

• Sharing fake personal stories to gain trust.

• Showing edited photos as proof of their “authenticity”.

• Talking about their “successful business ventures”.

Through constant interaction, the victim is slowly pulled into the scammers’ trap.

Executing the Final Scam
At this stage, the scammers persuade the victim to invest in fake stock markets, trading platforms, or cryptocurrency exchanges created by the technical team.
Initially, small profits are given to victims, making them believe they are earning real money.

• This psychological trick encourages them to invest larger amounts.

• Eventually, once a significant amount is invested, the scammers:

• Shut down the platform and disappear.

• Use fake links and QR codes to hack victims’ bank accounts.

• Steal money through mobile payment apps.

• Many victims only realize they have been scammed when it’s too late.

In conclusion, this article has provided a step-by-step breakdown of how scam operations function. In the end, these scams exploit human greed – the desire for easy money. While everyone has some level of greed, scammers manipulate it to trap victims into financial ruin. By understanding these tactics, people can protect themselves and others from falling prey to these deceptive schemes.

Source: The Global New Light of Myanmar

SMEs in Myanmar

1. In Myanmar, the role of Small and Medium Enterprises is crucial as SMEs comprise approximately 94 percent of all registered enterprises and 52-97% of labor forces. SMEs in Myanmar can be generally classified into five categories-

2. Import substitution in industrialization 

3. Export-oriented SMEs

4. Rural-located SMEs

5. Local and traditional SMEs

6. International subcontracting SMEs 

7. Myanmar is heavily dependent upon imported products even on daily necessities. This heavy dependence on imports can be fixed only with promoting import-substituting SME businesses. Some SMEs in Myanmar are engaged in export, but it is needed to promote more varieties of exported goods. Hence, it is essential to encourage SMEs that produce processed export products, using local raw resources. Some business sectors which have high propensity to export include agricultural processing, food processing, woodworking, metalworking, and the processing of marine products, among others. The registered number of SMEs in line with the list issued by SME development center in 2023 is approximately 46,014. SME registration rates are the highest in Yangon region and Shan State. 

SME Development Law and Policies in Myanmar 

3.       During the time when the State Law and Order Restoration Council was in power, the official law for small and medium-sized enterprises (SMEs) was enacted in the year 1990. Then, the 2011 Private Industrial Law was enacted and gave definitions of SMEs based upon four criteria (i) horsepower used (ii) number of employees (iii) capital investment (iv) annual production. The most recent SME-related law is the SME Development Law (2015), which gives the definitions of SMEs based upon business sectors namely manufacturing, wholesale, retail, service and others. Then, SME development rules was enacted in 2017 and in 2018, the term Small and Medium Enterprises was renamed MSMEs which stands for Micro, Small and Medium Enterprises by the Central Committee for Development of Micro, Small and Medium Enterprises. 

SMEs’ export 

4.       A great deal of previous literature provide factors enhancing SMEs’ export. Concerning factors enhancing export, there are two widely-used approach listed as resource-based approach and the contingency paradigm. The resource-based approach focuses on the firm’s internal variables whereas the second method focuses on the external aspects. Internal determinants include management qualities such as age, education, innovativeness, foreign exposure and export dedication as well as export marketing techniques such as product, pricing, promotion, distribution, service and networking tactics. The external factors are the characteristics of the foreign market such as legal, political, and economic system, cultural similarities, market dynamics, consumer and competitor behavior and the characteristics of the domestic government, which include government tax rates, government export support, government policies and the domestic business environment. 

5.       Compared to other ASEAN countries, SMEs in Myanmar are less likely to export, reporting that only 4.2 % of medium-sized firms and 0.8 % of small enterprises export directly or indirectly at least 1% of their sales (World Bank’s 
Enterprise Survey, 2014). Export destinations of Myanmar SMEs differ across firm size. Large firms have much more export propensity than SMEs and large firms have the capacity to export to high-income markets such as the EU and US. But, SMEs opt for regional markets such as China, Malaysia and Thailand whose target customers are less-demanding. According to World Bank Enterprise Survey, on the bright side, only 27% of medium-sized firms and 13% of small enterprises in Myanmar use material inputs of foreign origin. In Myanmar, SMEs from 4 states, 7 divisions and Union Territory, Nay Pyi Taw are engaged in export. ASEAN is an important market for Myanmar’ exports and Myanmar SMEs mainly export to China and Japan. Most of the exported products are agricultural products, marine products and wood and wood-related products. Agricultural products mainly include rice, different types of beans, white yam powder, coffee seed and coffee powder, Myanmar Tea, tamarind, jaguar, coconut, groundnut oil, sesame oil, ginger oil, oil palm, rubber, sugar, bees, lemon and honey. Marine products consist of fish, frozen fist stake, shrimps, soft shell crab, squid and lobster. Wood and wood-related products are wood, teak, value-added wood products, rattan products and bamboo place mate. 

Government Export Assistance Programs

6.       In accordance with notification (64/2023), which was issued by Ministry of Planning and Finance, the government provides exemption of commercial tax on 27 kinds of goods listed as different kinds of corn, fresh fish and shrimps, soil bean, milk and dairy products, yogurt, animals and animal products, fertilizer, various kinds of pesticide and weed killer that are used in agriculture, animal, fish and prawn medicines, veterinary preventative medicines, raw and finished materials for animal, fish and prawn feed (not included animal food that used for pets), pure seeds and seedlings of crops, raw materials for cotton, agricultural products, coconut oil, state flag, stationeries, X-ray, absorbent cotton wool, gauze, bandages, hospital sundries to take medicines, surgical mask (once used), cap, surgical glove, masks that used to prevent flu infection, household pharmaceutical and other medicines and traditional medicines, fire engine and hearse, raw materials used in making soap, battery electric vehicles and goods purchased by donated fund. The government offers tax incentives such as offering SMEs exemption from income tax for 3 consecutive years in accordance with Union Taxation Law. The government strives to adjust their tax rates with the enactment of Union Taxation Law each year as a way of rehabilitating economy when the economy slows down. Furthermore, SME loans are offered through different loan programmes. Now, it has been recently announced that Small and Medium businessmen can get loans from 15 private banks as well as state-owned Myanmar Economic Bank (MEB) and Myanmar Agricultural Development Bank (MADB). 

7.       In conclusion, the Central Committee for Development of Micro, Small and Medium Enterprises has been planning MSMEs products’ exhibition to encourage SMEs. I happened to visit one of those exhibitions and witnessed a lot of local SMEs’ products, which are displayed well. I gladly realized most SMEs just made use of local raw material. Some SMEs’ products are not well-recognized in the local market, but these products are value for money. These potential SMEs need some assistance in making their quality products well-recognized in the market. Some SMEs do not have enough capital to make mass production and these quality products disappear in the market sadly. Some of these local products equal other imported products. I believe that if these local products are well-promoted with special support from all responsible government organizations, it would be a great thing.  If SMEs’ requirements and government’s export assistance programs coincide, these products can survive in the domestic market as well as foreign market. 

References

The Global New Light of Myanmar

Myanmar Micro, Small and Medium Enterprise Survey (2019)

Myanmar Business Insight Report (2020). Inya Economics.

Factors Affecting Propensity to Export: The Case of Indonesian SMEs. 

The highly consequential meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping in Kazan on the side lines of the BRICS summit is opening exciting new opportunities. The ripple effects of this key interaction between strong leaders of the two civilizational states will naturally be felt on the bilateral terrain. Apart from promising stability along their disputed border, the benefits of the Kazan conversation go far beyond security. For instance, the dialogue between the two tall leaders has opened the door to a new phase of geo-economic engagement between New Delhi and Beijing. Chinese investments in In dia and Indian exports to China in the services sector, especially Information Technology and pharmaceutical and agri-sectors can be the new template for en gagement in the post-Kazan era. After the 2014 summit between Prime Minister Modi and President Xi in India, Beijing pledged a US$20 billion investment pack age in India. That included setting up an industrial park for manufacturing electrical equipment. If everything had gone according to plan, this equipment would have been exported to China, thus easing the adverse balance of payments, which India has chronically faced in its trade relations with China. Following Kazan, if the bilateral economic track takes off, it can encourage the two, to consider joint partnerships in third countries, especially in the Global South under the India-China+ formula. In the future, this formulation could mutate into a Russia-India-China+ idea where the three giants of the multipolar world can work together in the Global South. As the dust settles on the Modi-Xi talks — an event that took place after a gap of five years during which military tensions soared along the high mountain ranges of eastern Ladakh, it is now possible that both Beijing and New Delhi pick up the threads and explore possibilities of joint forays in Myanmar — a key nation on the cusp of South and Southeast Asia.

Why Myanmar?

There are at least four compelling reasons why India needs to reengage with Myanmar. First, Myanmar’s geography makes it a natural candidate for a deeper partnership. Myanmar is India’s gateway to Southeast Asia — indeed the pivot of New Delhi’s Act East policy. It presents a contiguous corridor for greater connectivity between Northeast India and ASEAN. Unsurprisingly, Myanmar is the fulcrum of the Asian Highway that will link India with Thailand, opening the possibility of a northern hookup with Danang in Vietnam. Trade and investments along the corridor can become a new engine for creating jobs, prosperity, and a surge in people-to-people connectivity. Second, Myanmar possesses a unique geo-strategic maritime location, along the Bay of Bengal. India has been Myanmar’s partner in building the Sittway Port. An outlet with huge potential, it is the natural gateway to channel trade from India’s northeast axis with the rest of the world, including ASEAN. On its part, China has constructed the deep-sea port in Kyaukpyu co-located with an industrial park. This port is of prime strategic importance as it lowers China’s trade dependence on the US-dominated Malacca straits, a key chokepoint that can be leveraged for the containment of China. Third, Myanmar possesses huge natural resources. These include significant deposits of precious and semiprecious stones, including rubies, sapphires, jade, and other gem stones. It also has deposits of silver, lead, zinc, gold, tin, tungsten, and barite. Besides, My anmar has substantial reserves of petroleum and natural gas, apart from huge hydropower potential, which can make it energy surplus. Myanmar can also be a major player in guaranteeing regional food security as its fertile land supports the cultivation of various crops, including rice, pulses, and other agricultural products, complementing marine resources such as fisheries. The country’s forests are also a major source of timber, fuel wood, and other forest products. Finally, as a neighbour of the two giants of the multipolar world order, Myanmar is a vital bridge between India and China, spurring the demand for a new regional initiative. Consequently, as a follow-up to the Kazan conversation between Prime Minister Modi and President Xi, a new China-India-Myanmar (CIM) economic corridor can be trilaterally considered a derivative of the BCIM plan. More so, such a standalone project can be kept out of the BRI framework, as its roots can be traced to the pre-BRI era. China has already flagged off the China-Myanmar Economic Corridor, which can be rebooted as a new project, with nodes firmly extending into India. (Atul Aneja is a strategic analyst based in New Delhi, India.)

Source: Global New Light of Myanmar

ILLEGAL trade can hamper the economic development of the State by reducing manufacturing activity among business owners and diminishing their competitive capability in the market. Preventing illegal trade can boost export volume and enhance the commercial sector by promoting product manufacturing and market competition. Additionally, these initiatives can increase local money circulation, raise export product volume, and generate more foreign exchange. As a result, the country can experience growth in its manufacturing, trade, and service sectors.

Myanmar is rich in natural resources, with a strong focus on the agricultural sector. To boost the state economy, the government has encouraged the manufacturing of natural resource-based products and agricultural goods while also working to promote micro, small, and medium-sized enterprises (MSMEs). However, illegal trade activities have had negative impacts on the nation’s socioeconomic sector.

Illegal trade eradication task forces formed in regions and states managed relevant squads, impounding smuggled goods and addressing illegal trade activities worth K300.28 billion across 14,659 cases during the two years and eight months from January 2022 to August 2024. However, this amount was relatively small compared to the State’s overall trade sector. Therefore, authorities and task forces must intensify efforts to take action against those involved in illegal trade activities.

With regard to seizures in July and August 2024, the Customs Department nabbed the most considerable amount and volume of illegal trade process, followed by the task force from Mandalay Region, Sagaing Region and Kahin State in series. The authorities seized unregistered vehicles and illicit commodities in the largest volume, industrial raw materials in the second largest volume and capital goods in the third largest one.

The economic development of a country depends on manufacturing and trade sectors. As such, authorities need to encourage agriculture- and livestock-based businesses. Meanwhile, relevant ministries have to fulfil the basic needs of farmers from the agriculture and livestock breeding sectors as part of implementing the assigned duties.

It is necessary to supply fertilizers, pesticides, quality strains of seeds, agricultural inputs, animal feeds, vaccines, and other needs to farmers on time. On the other hand, relevant authorized bodies need to systematically supervise the trafficking of prohibited goods, taking advantage of priority on legal trade measures. If so, legal trade contributes to local businesspersons and traders on their official process at home and crack down on illegal trade processes.

The 20th China-ASEAN Expo saw record numbers of events, cooperation projects and investments. Nearly 2,000 businesses, up 18.2 per cent from 2022, showcased their products at the expo. High-tech products such as intelligent equipment became a highlight at the expo. Particularly, Brunei’s decision to purchase 30 Chinese-made airplanes, namely C919 and ARJ21, for more than US$2 billion in total became the biggest deal in the expo’s 20-year history.

The bustling scene at the expo illuminates an emerging trend in China’s trade sector in recent months: Even as Chinese exports face a weakening external demand due to a wide range of factors including profound challenges and rising protectionism in advanced economies such as the US and Europe, China’s trade with emerging markets, including ASEAN and countries and regions participating in the joint construction of the Belt and Road Initiative (BRI), continues to rise steadily. Meanwhile, high-value, high-quality Chinese products such as new-energy vehicles (NEVs) and construction equipment are becoming new growth spots.

While foreign media outlets have been hyping claims of “falling” Chinese exports or allegations of Made-in-China being “replaced” by other countries and regions, China’s foreign trade remains resilient in the face of external and internal downward pressure, businesses and economists noted. And as exports remain one of the three growth engines of the Chinese economy, high-value, high-quality trade will continue to help stabilize the world’s second-largest economy in the coming months and years, they noted.

Resilience in hardship 

At the exhibition halls of the China-ASEAN Expo, vendors from ASEAN showed a palpable sense of confidence and interest in boosting trade with China, as they showcased various products, which were emptied by visitors. While ASEAN exhibitors focused more on agricultural products and small commodities, Chinese exhibitors focused on high-tech products such as NEVs and robots.

“The world is currently facing an economic slowdown… ASEAN member countries are pinning their hopes on China,” Tan Sri Dato’ Low Kian Chuan, President of The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), told the Global Times on Tuesday on the sidelines of the China-ASEAN Expo. “It can be seen from the trade volume that China-ASEAN trade has surpassed the EU. We need China, and China also needs ASEAN. Bilateral cooperation will definitely deepen.”

In the first eight months of 2023, China’s total imports and exports dropped by 0.1 per cent year-on-year to 27.08 trillion yuan, with exports growing by 0.8 per cent year-on-year to 15.47 trillion yuan, according to data from the General Administration of Customs (GAC). However, there were also plenty of emerging trends that point to the resilience and upgrade of China’s trade sector.

From January to August, China’s imports and exports with 152 countries that are participating in the joint construction of the China-proposed BRI grew by 3.6 per cent yearon-year to 12.62 trillion yuan, accounting for 46.6 per cent of China’s total foreign trade. China’s trade with ASEAN, which remains China’s biggest trading partner, grew by 1.6 per cent year-on-year to 4.11 trillion, accounting for 15.2 per cent of China’s total trade. The fall in China’s overall trade during the period is largely due to declines in exports to the EU, the US and Japan, which all face stubbornly high levels of inflation.

In terms of top export products, demand for Chinese-made mechanical and electrical products remained high, as exports during the first eight months increased 3.6 per cent year-onyear. Exports of cars, including NEVs, skyrocketed by 104.4 per cent year-on-year. China’s car exports have made headlines around the globe, with many foreign media outlets predicting that China is set to overtake Japan as the world’s biggest car exporter in 2023.

A slew of advanced technology exhibits was unveiled at the China-ASEAN Expo. The exhibits cover a wide range of products, spanning aerospace, advanced manufacturing, sustainable development, and digital advanced applicable technologies, offering the audience a glimpse of life in the future. The advanced tech exhibition area covers an area of 3,400 square metres, with a total of 124 exhibitors and 345 exhibiting projects on display.

Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, said Chinese products still maintain a solid competitive edge even though Chinese exports face challenges such as US’ additional tariffs. Gao noted the challenges will be relatively short-term against the back-drop of the trade competition between China and the US. 

“The core factor affecting China’s trade, namely the competitiveness of Chinese products, has not undergone major changes,” Gao told the Global Times, adding that while the role of exports as a major economic engine is decreasing due to the rise of Chinese consumption, China’s foreign trade still has a vast potential for development.

High-quality development 

New trends in China’s foreign trade also underscored high-quality development, in which more markets have been explored and more Chinese-made high-tech products are getting increasingly popular around the world, analysts noted, stressing that an increasingly optimized trade structure that focuses on emerging markets and industries is more sustainable in the long run.

Zhou Mi, a senior research fellow with the Chinese Academy of International Trade and Economic Cooperation, said that one of the biggest highlights of China’s foreign trade is that the trade volume with countries participating in the BRI is rising sharply, which in turn lifts local economic developments and thus demand. In terms of product offerings, China’s exports sector has responded swiftly to demand for the digital economy, green development and other new consumption trends.

“To gauge the global influence of one country’s exports, we still need to see whether it can meet the needs of global economic and industrial upgrading, so the quality of exports needs more attention. China’s exports are still recovering, and this recovery is not only reflected in the quantity,” Zhou told the Global Times. “We cannot just focus on increasing the scale of exports, we also need to improve the quality.”

Amid the rapidly shifting global geo-economic landscape and the domestic industrial upgrade, China has made high-quality development in foreign trade one of its top priorities, and has taken a slew of measures in this regard. In April, the Ministry of Commerce introduced a series of policies to stabilize the scale of foreign trade and improve its structure, including helping automakers establish and improve their international marketing and service systems, and improving foreign trade financing services for medium, small and micro enterprises. These measures have greatly helped boost relevant sectors such as soaring NEV exports.

Another highlight of China’s foreign trade sectors this year is surging exports by private enterprises. In the first eight months, total exports value by private enterprises rose by 6 per cent to 14.33 trillion yuan, accounting for 52.9 per cent of the national total, according to the GAC.

The measures, which also include extensively resuming domestic offline exhibitions, will continue to help enterprises explore more markets. China has held a series of trade fairs this year, including the China-ASEAN Expo and the China International Fair for Trade in Services earlier this month. More are under planning, including the China International Import Expo scheduled later this year in Shanghai, which has become a major event for global trade cooperation that focuses on imports. 

“I have confidence in China. I believe that China has the conditions and capabilities. Moreover, China is not just the world’s largest factory. It can make breakthroughs and cope with the current challenges through its own technological innovation,” Low said. 

Source- The Global New Light of Myanmar