Mike Than Tun Win, founder and chief executive of BOD Tech Co which runs Flymya travel portal and Get digital services, said the coming tech disruption will be driven mainly by young entrepreneurs.

“The government should place more focus on IT education in key universities. A better relation between the public and private sectors is critical,” he said.

He stressed the need to open up more sectors to the private sector, so they could play an active role in the nation’s growth. He also encourages adopting more public-private partnerships to accelerate the growth momentum.

Flymya aims to double its web traffic and revenue in 2019. Get Ride plans to bring 30,000 drivers onboard and cover 12 cities, while its digital shop expects to empower 40,000 small shops nationwide.

“Even though smartphone use in Myanmar is pretty high, we expect a gradual growth over the next two years. With improving IT literacy, we will be able to enjoy more exponential growth from 2020 onwards,” said Mike.

Kyaw Kyaw Win, co-founder and chief executive of Innoveller Co, which drives digital transformation in bus ticketing via its platform MMbusticket, urges the government to support entrepreneurs and startups.

“The government plays a very important role in every industry – not just in the tech industry. As regulator, they should set up the right policies to promote and protect the developments in this industry,” he said.

According to Kyaw Kyaw Win, tech businesses in Myanmar urgently need the government’s support in terms of protecting their intellectual property rights, as it is pivotal to their sustainable development.

“Our government should learn how Vietnam allows Facebook and Google to install servers and open representative offices there, as well as how Singapore regulates its ride-hailing industry to protect consumers,” he said.

This year, Innoveller Co will continue to empower more bus operators to improve their operation efficiency, cost effectiveness and revenue growth through digital transformation. It expects all bus operators in Myanmar to be ready for e-commerce by 2020, he said.

“More and more people will use digital money in the coming years,” he said.

Sully Bholat (aka Htet Aung Latt), the founder and chief executive of Flexible Pass Co which tries to bring all the gyms and fitness centres in Myanmar under one umbrella, echoed Kyaw Kyaw Win’s view.

“There will be more mobile money and digital payment options available through this trend of tech disruption. It will make it easier for people to make payments as they will no longer need to rely on cash,” he said.

Tech businesses need more support from the government, he revealed. He suggested providing more loans and financial support for startups to improve the technology landscape in Myanmar.

To date, Flexible Pass has partnered with nearly 90 gyms, fitness centres and hotels in Yangon with 19 different categories of fitness activities available for its users. The firm aims to expand its business in Mandalay and also expand into spas and beauty services in 2019, he said.

Aung Ye Kyaw, the founder and chief executive of White Merak Co which created Myanmar’s first-ever animated comic application, expects tech entrepreneurs to mainly focus on artificial intelligence, machine learning and workflow automation in the near future.

Like other young entrepreneurs, he is also anticipating the enactment of the Intellectual Property Law. He urged that authorities be more supportive of the tech industry through government incubators and standardised investment laws.

“This year, we will bring more engaging content including comics and manga to our readers, and will ensure a more tech-involved creative process in the workflow. We will also engage customers with more immersive reading experiences like augmented reality,” he said.

Soe Thein, director general at the Posts and Telecommunications Department (PTD), pledged to create an enabling environment for both corporates and startups in order to push Myanmar’s tech industry to the next level.

“PTD as the regulator will ensure we create a good mix so that every single player has a chance to be part of our digital transformation journey,” he said.

According to the official, Myanmar looks to strengthen cooperation with multinational companies in its push for the fifth generation of wireless technology (5G) while attempting to launch initiatives to support the development of local tech firms.

Bids to boost digital literacy in Myanmar are also supported by international players, including the digital payment giant Visa. Arturo Planell, country manager of Visa Myanmar, said the transition to a cashless society is possible over the next three or four years, through effective programmes to increase people’s financial literacy.

Provided that nearly 80 per cent of the population remains unserved by Myanmar’s traditional banking system, Brad Jones, chief executive of Wave Money, foresees a brighter future for mobile financial services in Myanmar.

“Prime Minister Prayut Chan-o-cha stated that he wants the BoI to support both foreign and domestic investment into the country’s rail system,” BoI secretary-general, Duangjai Asawachintachit, said at a press conference after a BoI meeting with the Prime Minister.

Under the BoI investment package, business projects concerning the rail system and related sectors that apply for BoI promotions by December, 2021, will receive a tax reduction of 50 per cent for three to five years, she said.

Projects that are located in the northeastern region of Thailand such as Korat and Khonkaen province and surrounding areas, will receive the tax reduction for five years, she said.

Duangjai also said that the BoI is looking to encourage investment in the construction of Thailand’s own train assembly factory as it will help reduce the burden on the country’s imports.

“Research suggests that in order to make the construction of a train factory financially sound, there needs to be sufficient demand in the country and the factory will have to assemble at least 300 trains per year,” she said.

“Seeing that the demand for rail transport is projected to increase significantly throughout all regions in the country, the BoI is looking to support the construction of a train assembly factory.”

There are currently 3,600 trains in the Kingdom, including double and single track trains, mass transit trains in Bangkok and high-speed trains. To meet rising demands, Thailand will need to have up to 10,000 trains in the next 20 years, Duangjai said.

Foreign investors are interested in our rail system, she said. Recently, the Prime Minister met with the various German investors in the rail sector during his visit to Germany, Duangjai said.

The second BoI initiative to attract investment is through the tourism industry.

“Another initiative which the BoI will be looking at in 2019 is the potential to introduce cruise tourism businesses into the country,” she said.

“In order to develop cruise tourism, we will first have to invest in constructing a tourist port which will welcome tourist cruises.

“Cruise tourism is a promising industry for Thailand as it brings in high-quality tourists that come in large volume.

“We have set a criteria for projects to invest in the construction of a tourist port to have a value of at least Bt100 million,” she said.

Pinsai Surasawadi, principal adviser on strategic tax administration (Finance and Banking) who is also a spokesman for the Revenue Department, said that home renovations less than Bt100,000 will be allowed a tax refund and repair to cars will get a refund for a work not more than Bt30,000.

The work will have to be done between now until March 31, 2019, and people can apply to get the tax refund for the year 2019, which will apply within March 31, 2020, he said.

The central bank is ready to act if the economy slows down sharply, its governor Veerathai Santiprabhob said yesterday amid concerns by some analysts that a stronger baht will hurt the economy.

Speaking to analysts on the monetary policy settings and economic conditions, Veerathai said the current policy rate of 1.75 per cent is accommodative to economic growth, which is expected to be 4 per cent this year.

 “If the economic growth is sharply slower, then the central bank has the tools to address it,” he said.

Although the global economy is slowing down, unemployment rates in the United States and Europe remain low and the US economy is still creating jobs, Veerathai said.

But many analysts have expressed concern that a stronger baht – bolstered by higher interest rates – will hurt Thailand’s exports. They also want the central bank to give a clear signal it will slow down the pace of rate increases in the future after the BOT raised the benchmark rate in December last year.

They fear that further rate rises would deepen the economic slowdown that is believed to be under way. The US Federal Reserve recently signalled to the market that it would be flexible on its stated goal of raising interest rates from the emergency levels set during the global financial crisis.

Underscoring the analysts’ concerns, the World Bank has forecast slower growth in the global economy this year.

“Given the current unfavourable economic conditions, the BOT’s rate tightening is not appropriate,” said Piyasak Manason, senior vice president and head of the wealth research department at SCB Securities Co.

Piyasak said that, among the Asian currencies, only the Japanese yen and the baht have strengthened against the US dollar since December. The yen and the baht have risen about 5 per cent and 2 per cent, respectively against the greenback over this period, he said.

His comments echo those of exporters, who over the past few days have pointed to the rapid rise in the baht, a trend that would make Thai products less competitive in the global market.

Kobsidthi Silpachai, head of capital markets research at Kasikornbank, share Piyasak’s view that the current monetary policy is not conducive to economic growth. Thai consumers remain saddled with high debt, which would make them cautious on spending, he said.

Exacerbating the problem is that the gap between rich and poor remains high, suggesting most consumers do not have much purchasing power compared with the 1 per cent of super rich, Kobsidthi said.

However, Mathee Supapongse, deputy governor of the BOT, argues that the global economy is not suffering from a fundamental deterioration. “The slowdown is coming from a high base, not from a low growth rate,” he said.

Addressing concerns over the threat of deflation, Mathee said that the lower prices of some goods has been caused by globalisation, along with the application of new technology in production and intensifying competition among e-commerce operators.

Veerathai also played down fears of a possible economic recession.

“Local consumers are not delaying their spending by waiting for further falls in the price of goods. We don’t detect any such dramatic change in their behaviour,” he said.

Paiboon Nalinthrangkurn, chairman of the Federation of Thai Capital Market Organisations (Fetco), said the drop in the Investor Confidence Index (ICI) stems largely from the lack of clarity on the political landscape.

 However, Paiboon said that 2019 would mark a stronger year for the Thai stock market than was seen in 2018. He predicts the Stock Exchange of Thailand (SET) will reach 1,782 points by the end of 2019, citing a weakening US dollar and increased foreign investment as key factors.

“The political uncertainty in Thailand is the largest concern for investors because of its unpredictable nature,” Paiboon said. “Unlike economic risks such as the trade war, oil prices or rising interest rates which can be analysed and predicted by economists, our insight on the upcoming political situation is much less clear.”

Paiboon said that the apparent postponement of the oft-delayed general election, most recently slated for February, has damaged investor confidence.

But he said that if a clear election date is released in the near future, and that this falls within the timeframe set by the constitution, investor confidence will recover.

“Another political concern is whether the next government, which is likely to be a mixed government without a strong majority, can swiftly be formed and push out new economic policies,” Paiboon said.

The plunge in the ICI for the next three months dragged down the gauge to 92.75 points in March, according to Fetco. Of all the investor categories, retail and proprietary traders took the biggest hit, falling by 10.84 per cent and 12.49 per cent, respectively. Paiboon attributed this to their profile of being short to medium-term investors.

In contrast, the ICI reading for long-term investors, such as local institutions, increased 4.17 per cent.

In addition to the uncertain political situation, investors are also concerned about the US-China trade war and the shutdown of the US government, said Prinn Panitchapakdi, the country head of CLSA Securities, Thailand.

Prinn, sharing Paiboon’s view that the stock market will do better this year, pointed to an expected increase in the number of Chinese investors in the Thai market as a key factor.

“The Chinese One Belt, One Road (OBOR) initiative is likely to show impacts in 2019, with many Chinese investors looking to find local investment partners in Thailand,” he said.

Prinn said Chinese investors have shown interest in the energy and infrastructure sectors.

Paiboon said: “Another promising trend in 2019 is the weakening dollar, which has weakened due to the signalling of the US Federal Reserve to only hike US interest rates once in 2019.

“When the US dollar weakens, emerging markets such as Thailand will perform better.”