Weekly Business News from Myanmar

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  State Counsellor worried the loss of both foreign and local investments if factories suspended for a long time

  If the factories, which run with foreign direct investment, remained close for a long time, it can result in the loss of investment, Daw Aung San Suu Kyi, the State Counsellor of Myanmar, said in her address to the people explaining the situation of the pandemic in Myanmar. “If the factories that run with foreign investment remain closed for a long time, we might not continue to get the investments. If we lose investments, it is not good for our economy and the lives of our workforce. Therefore, we want factories to resume as soon as possible,” she said. The Ministry of Health and Sports will allow the CMP factories as well as small and medium enterprises to resume the operation if they meet all the requirements of COVID-19 prevention and get an A-rating for preparedness.
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  Myanmar’s Foreign Direct Investment (FDI) tops USD $ 25 billion over the past four and half years under incumbent government period

  Myanmar has attracted more than US$25 billion of foreign direct investments over the past four and half years under the incumbent government, according to the Directorate of Investment and Company Administration (DICA). The Myanmar Investment Commission (MIC) and the respective investment committees granted permits and endorsements to 1,032 foreign enterprises between the 2016-2017FY and 2019-2020FY, with estimated capitals of US$25.186 billion. The FDIs stood at $6.9 million from 158 enterprises in the FY2016-2017, $6.119 billion from 234 businesses in the FY2017-2018, $1.94 billion from 89 projects in the 2018 mini-budget year, $4.5 billion from 298 enterprises in the FY2018-2019 and $5.689 billion from 253 businesses in the FY2019-2020 respectively, the DICA’s data indicated. The FDIs flow into the 12 sectors; oil and gas, power, transport and communications, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing and other service sectors.
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  Myanmar – Thai trading cargo trucks allowed to exchange goods only in BCF Zone cargo compound of No.2 Friendship Bridge

  Under current circumstances, cargo trucks trading between Myanmar and Thailand have been allowed to exchange their goods only in the BCF Zone Cargo Terminal compound of No.2 Friendship Bridge aso of October 11, said the commissioner of Myawady District. “Currently, bilateral trade is allowed only at the BCF Zone. We have some difficulties. The cargo trucks from both countries have to load and unload goods in the BCF Zone Cargo compound,” said Myawady District commissioner Tay Zar Aung.
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  China raises driver substitution charges through Mang Weing border crossing in order to bid to contain the spread of coronavirus

  In a bid to contain the spread of coronavirus, Mang Weing border checkpoint has adopted driver substitution system starting from the first week of April, and China unexpectedly scaled up charges for driver substitution on 11 October. “China increased charges for driver substitution. Earlier, more than 20 substitute drivers were assigned to transport the goods, under the supervision of China’s authority. Now, a company is responsible for handling this. The charge for substitute driver was earlier set at 20 Yuan. The rate has now remarkably jumped to 100 Yuan. At present, five drivers are operating this. The charge is an exorbitant rate, with entry and exit fees set at K20,000 each”, said chair of Muse-Namkham Chamber of Commerce. As China has been stepping up border control measures to contain the spread of the COVID-19, the driver substitution policy has been exercised on Muse, Mang Weing and Kyalgaung border route.
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  Myanmar’s trade deficit significantly widens to USD $ 1.46 billion in 2019 – 2020 financial year

  Myanmar’s trade gap has significantly surged to US$1.46 billion in the financial year 2019-2020 from over $1 billion registered in the corresponding period of the 2018-2019FY, according to the data provided by the Ministry of Commerce. Between 1 October and 25 September in the current FY, Myanmar’s external trade increased to over $36.2 billion from $34.3 billion recorded in the year-ago period. While exports were estimated at $17.37 billion, imports were valued at $18.8 billion. Compared to the FY2018-2019, exports showed an increase of $851 million, while imports climbed up by $1 billion. Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, intermediate goods, CMP raw materials, and consumer goods.
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  Goat, cattle exporters call for regulatory relief and market creation in domestic meat market

  The goat and cattle exporter are asking for regulatory relief and market creation in domestic meat market as they are carrying a heavy burden due to export difficulties through border trade and high input costs such as feedstuff cost and labour wages. “We request the reduction of market barriers. It does not mean to reduce the Licence C fee, controlled by a municipal committee for butchery. We want the municipal to support breeding and meat production. If regulatory fees including permit fees by the Department of Livestock Breeding and Veterinary and tax costs around K5,000 per head of cattle, we can sell the boneless mutton of export quality at K10,000 per viss (a viss equals to 1.6 kg). The price, however, is not suitable for the domestic market. If there is a canned meat factory invested in the country, we can provide them as much as they want. The high-quality meat is not usually consumed in the domestic market. Consequently, the cattle and goat exporters are now waiting for the export market, while they are being burdened by feedstuff cost and other general costs.
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  Myanmar earned over USD $ 63 from exporting 410 tons of jade in the 2019 – 2020 financial year when compared to the same period of previous year

  Myanmar earned over US$420 million from export of nearly 2,000 tons of jade in the 2019-2020 fiscal year exceeding over US$63 million from export of 410 tons more compared to the previous year, said an official from the Ministry of Commerce. “This year, we exported 1,964.488 tons worth US$420.036 million. Last year, we earned US$356.876 million from export of 1,548.452 tons of jade,” the official said.
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  Singapore-based fintech startup is pulling out of a new Shwe Kokko project

  FINCY, a Singapore-based fintech startup, is pulling out of a new Myanmar border city, amid allegations that it is being used to prevent law enforcement from tracking financial transactions in the city, The Business Times reported. Its app, which enables users to perform currency exchange and pay merchants in various countries, is said to be the exclusive provider of financial infrastructure to Shwe Kokko’s 40,000 residents, who use the app to make purchases, perform transactions, receive salaries and manage their expenses digitally.
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  Singapore tops source of foreign direct investments (FDIs) in Myanmar in 2020 – 2021 financial year

  Singapore has remained as the top source of foreign direct investments into Myanmar in the current financial year 2019-2020, according to data released by the Directorate of Investment and Company Administration (DICA). The 20 Singapore-listed enterprises brought in US$1.85 billion into Myanmar in the past financial year 2019-2020. Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors. Hong Kong stood as the second-largest investors this FY with an estimated capital of $1.42 billion from 46 enterprises, followed by Japan investing $760 million in Myanmar. Myanmar attracted foreign direct investments of more than US$5.68 billion between 1 October and 30 September in FY2019-2020, and over $100 million is required to meet FDI target, the DICA stated. The FDIs flow into oil and gas, power, transportation and communication, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing, trading, logistics and other service sectors.
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  Myanmar attracted domestic investments over K 10,000 billion over the four and half years under the incumbent government

  The domestic investments of over K10,000 billion made by Myanmar citizens have brought into Myanmar over the four-and-half years of the incumbent government, according to the Directorate of Investment and Company Administration (DICA). A total of 575 domestic enterprises put investments of K10,150 billion into the country between the financial year 2016-2017 and the 2019-2020FY. The domestic investments stood at K1,604 billion from 52 enterprises in the FY2016-2017, K3,978 billion from 119 enterprises in the FY2017-2018, K995 billion from 105 businesses in the 2018 mini-budget year (April-September), K1,691 billion from 169 enterprises in the FY2018-2019, and K1,881 billion from 130 projects in the FY2019-2020 respectively, the DICA’s data showed.