Weekly Business News from Myanmar

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  Myanmar is endeavouring to penetrate US fish and seafood market with local fisheries exports to effectively mitigate the impacts of the pandemic

  Myanmar fisheries sector is hit hard by the coronavirus fallouts, and the Ministry of Commerce is endeavouring to penetrate the US’s fish and seafood market, Yangon Region Fisheries Department stated. The offshore fishing season commenced on 1 September, and fish and shrimp supply has entered Yangon starting from 7 September. Myanmar fishery products exports to the countries in Asia have been severely affected by the global coronavirus outbreak. To effectively mitigate the impacts of the pandemic, the ministry is exerting the concerted efforts to enter the US fish market.
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  Myanmar traders are expecting border trade to take another hit as China closed key customs gate to curb the spread of COVID – 19

  Traders at Myanmar’s largest border crossing with China, in Shan State’s Muse, are expecting border trade to take another serious blow following China’s decision to shut a crucial customs gate to curb the spread of COVID-19. On Tuesday, authorities in Ruili, the town across the border from Muse in China’s Yunnan Province, imposed a lockdown and ordered that all residents be tested for COVID-19 after two Myanmar nationals tested positive there. Chinese officials also shut down Ruili’s customs clearance office, a crucial checkpoint for goods from Myanmar. “Border trade has stopped completely. Since the customs gate is no longer in service, we can’t export any goods to China,” U Min Thein, vice chairman of the Muse Rice Wholesale Center, told The Irrawaddy.
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  Myanmar is ready to export rice if the Republic of the Korea (ROK) send the purchase proposals for the emergency reserve to Myanmar

  Myanmar is willing to sell rice if the Republic of Korea delivered the purchase proposals for the emergency reserves to Myanmar, said U Ye Min Aung, president of Myanmar Rice Federation (MRF). To maintain the price stability and build food security for the possible natural disaster, the government of ROK will start the annual purchase of rice for the emergency reserves in the third week of September. Under the plan, Korea will purchase 340,000 tonnes of rice for the reserves by the end of this year, along with 10,000 tonnes for foreign aid, according to the Ministry of Agriculture, Food and Rural Affairs of Korea.
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  Yangon Region Directorate of Hotels and Tourism will start provide online service for administrative procedures

  Yangon Region Directorate of Hotels and Tourism temporarily shut down its office, yet it will provide online service for managerial procedures, the department stated. In a bid to contain the surging coronavirus cases, only the staff were allowed in the Yangon Region government office compound starting from 14 September. The current coronavirus resurgences in the region led the department to go digital platform to facilitate those work matters, including business licence, the extension of permit and changing the business name and the company’s principal place. Therefore, those who want to contact the regional directorate can contact through mail address yangon@tourism.gov.mm and in-person contact will be informed later, notified the directorate. The regional tourism committee, at the meeting held in Yangon Region government office compound on 3 September, issued licences to one hotel and three guesthouses, with a total of 2,360 rooms; and construction permits have been granted for two hotels, with an estimated capital of K9.353 billion.
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  Asian Development Bank (ADB) forecasted to bounce back 6 percent in 2021 despite the current economic fallout in Myanmar

  Although Myanmar’s GDP growth has fallen to 1.8 percent due to the effects of COVID-19, the Asian Development Bank (ADB) has reported that growth is forecast to bounce back to 6 percent in 2021. The bank’s Wellness in Worrying Times: Asian Development Outlook 2020 forecasts Myanmar’s GDP growth for the fiscal year ending Sept. 30 will fall by more than a half due to COVID-19. However, the projected GDP would bounce back almost as dramatically, ADB said. It said growth will be supported by a stable performance in agriculture, higher government spending and expansion in the telecommunications sector. ADB reported Myanmar’s GDP growth at 6.7 percent in the last fiscal year before falling to 4.2 percent in April and 1.8 percent since June.
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  Myanmar’s cross border trade with China exceeded USD $ 5.26 billion in the 11 months of the current 2019 – 2020 financial year

  Myanmar’s border trade with China saw a decrease of US$ 188 million between 1 October last year and late August this current financial year, according to the statistics from the Ministry of Commerce. The border trade between Myanmar and China through five border checkpoints was over US$5.26 billion in the current budget year, which plunged from US$5.45 billion recorded in the corresponding period of last year, the ministry’s figures showed. The border trade between Myanmar and China reached US$4.35 billion through Muse, US$128.6 million via Lwejel, US$491.83 million via Chinshwehaw, US$279.86 million via Kampaiti, and over US$ 4.94 million via Kengtung. The ministry’s data showed a slight drop in trade value via all border trade camps between Myanmar and China, except Chinshwehaw. A large portion of Myanmar’s overland trade with China goes through Muse border. China has been stepping up border control measures to curb the spread of the deadly coronavirus infection. Due to an import ban on rice, sugar and maize, and the ongoing coronavirus pandemic, the border trade volume between Myanmar and China has been declined when compared to previous years.
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  The domestic and foreign enterprises created about 200,000 jobs in the past eleven months of current 2019 – 2020 financial year

  The domestic and foreign enterprises permitted and endorsed by the Myanmar Investment Commission (MIC) and other regional and state investment committees created about 200,000 jobs in the past 11 months of the 2019-2020 financial year, according to the Directorate of Investment and Company Administration (DICA). During the October-August period, the foreign enterprises created over 176,000 jobs for locals, adding the recruitment of the existing foreign enterprises, as per data from the DICA. Additionally, the domestic enterprises under the Myanmar Investment Commission created over 21,000 jobs for local people in the past 11 months, including the increase in employment by the existing enterprises. Moreover, the domestic and foreign businesses employed about 5,000 expatriate workers in Myanmar.
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  The annual inflation rate in Myanmar stands 7.14 percent in July 2020 which fall when compared to the same period of previous year

  The annual rate of inflation in Myanmar, based on the Consumer Price Index, stood at 7.14 per cent in July 2020, according to a report released by the Central Statistical Organization, under the Ministry of Planning, Finance and Industry. The US dollar against Kyat weakened in July, with a fall of K24 than the previous month. However, the gold price significantly rose in July on the back of global cues. Similarly, the imported oil price went up against June’s rate, causing truck fares and food price to slightly increase. Nevertheless, there was a remarkable increase in CPI for the food group, household goods and maintenance, other commodities, clothing, health, education services, tobacco and beverages, recreation, culture and non-food. The price of telecommunications dropped.
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  Domestic tourism companies and tour guides had shifted to other business since tourism business had to stopped in the wake of COVID – 19 outbreak in the country

  Myanmar Tourism Operators Association Chairman Naung Naung Han said that domestic tourism companies had to shift to other businesses such as the food industry since almost all tourism businesses had to be stopped in the wake of COVID-19 outbreak in the country. COVID-19 positive cases are surging in Myanmar and domestic airlines and express bus services are suspended at present.
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  Foreign investment flows into the Special Economic Zone (SEZ) raked USD $ 1.34 billion over the four years under the incumbent government

  Foreign investments of US$1.348 billion have flowed into the Special Economic Zones (SEZs), under the Special Economic Zone Law, over the four years under the incumbent government, according to the figures released by the Directorate of Investment and Company Administration (DICA). Between 2016-2017 financial year and as of July-end in the 2019-2020FY, 58 enterprises from 17 countries have ploughed in $1.348 billion, including $12 million valued domestic investments by existing businesses, the DICA’s statistics indicated.