Weekly Business News from Myanmar

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  Ministry of Commerce announced that exporters need to apply for licence for over 1,200 items

  Out of more than 10,000 goods, only over 1,200 goods are necessary to apply for an export licence, according to an announcement of the Ministry of Commerce released on 8 July. The Ministry of Commerce requires a total of 1,224 items to apply for export licences under HS Code 2017 version, which contains alive animals, rare fish species and animal products, medicinal plants, forest products, mining products, raw materials and restricted chemical products, explosive devices, fertilizers and antiques. HS code 2017 requires applying for the export licence but the government has relaxed this licence requirement rule step by step. Previously, it was necessary to apply for the export licence for over 10,000 items.
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  Micro, Small and Medium Enterprises (MSMEs) received the largest share of COVID fund amounting over K 70 billions

  Out of K100 billions of COVID Fund, micro, small and medium enterprises (MSMEs) received the largest amount of the fund totalling over K70 million, according to the committee to remedy the economic impacts caused by the pandemic. The Committee for Remedial Works on Economic Impacts of COVID-19 has set up the coronavirus fund in order to provide necessary monetary assistance to the businesses hit by the pandemic. That is why the committee has granted the loans to CMP garment businesses, hotels, and tourism-related businesses and small and medium enterprises (SMEs), which are badly impacted by the pandemic. Regarding the loans, the committee has granted the loans seven times to a total of 3,393 businesses which are in accord with the loan terms and conditions.
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  Yangon Region Investment Committee (YRIC) has approved over 23 million worth eight foreign projects including CMP businesses

  The Yangon Region Investment Committee (YRIC), at a videoconference held on 8 July, has approved eight foreign projects from China, Viet Nam, Samoa and Hong Kong (SAR), with an estimated capital of US$23.784 million. The projects will create over 5,900 jobs. They will invest in manufacturing of sportswear, bags, garments, hats and fabric on a Cutting, Making, and Packing (CMP) basis and hotel business, according to the Directorate of Investment and Company Administration (DICA).
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  International Monetary Fund (IMF) takes stock of Myanmar’s economy and society under the COVID – 19 pandemic

  Although officially recorded cases of COVID-19 in Myanmar remain low, the social and economic effects could be significant, given the externally oriented economy, uneven social safety nets, and the fragile healthcare system, according to a report just released by the International Monetary Fund. IMF emergency financing of $356.5 million, along with external financing, the Debt Service Suspension Initiative, and continued capacity development, are alleviating the impact of COVID-19, while establishing the roots for more sustained and inclusive growth. The government’s COVID-19 Economic Relief Plan aims at minimizing the pandemic’s impact by stimulating the economy and boosting spending on health and social safety nets. Compared to other countries in the region, Myanmar’s COVID-19 outbreak appears to be limited. The country reports about 300 confirmed cases despite its large population of 54 million, possibly reflecting limited testing capacity. The authorities implemented strict containment measures well before the case count picked up, including travel restrictions, closure of land borders, and bans on mass public gatherings, helping to flatten the curve of infections.
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  The cold storage factories for livestock products will be built with USD $ 4 million World Bank’s loans in Yangon

  US$4 million will be loaned from the World Bank to build cold storage factories for livestock products in Yangon, Bago and Ayeyawady Regions, said Dr Ye Tun Win, director general of the Livestock and Veterinary Department. He disclosed the information during a video conference between State Counsellor Aung San Suu Kyi and departmental officials over the Covid-19 impact on Myanmar’s livestock sector. Dr Ye Tun Win said there was some loss and damage during the Covid-19 period with slow commodity flow as there are not enough cold storage factories, stressing the need to build new ones. Therefore, new cold storage factories would be built for those three reasons by seeking a WB loan of US$4 million.
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  More than 3,300 businesses have been granted COVID fund in the past four months

  More than 3,300 enterprises have been granted over K100 billion from the Coronavirus Fund in the past four months, as per the data of a committee to remedy the economic impacts caused by the pandemic. The committee has been granting the loan to the business stricken by the pandemic from the initial fund, with K50 billion allocated from the country’s revolving fund and another K50 billion from the social welfare fund. The priority sectors are CMP garment business, hotel and tourism service and small and medium enterprises (SMEs). The interest rate for a one-year period is only one per cent. Regarding the Fund, 85 businesspersons have been granted K5.696 billion in the first batch, while 113 enterprises were selected for K4.495 billion in the second batch, 111 enterprises in the third batch for K3.5466 billion, 417 in the fourth batch for K15.079 billion, 290 in the fifth batch for K8.7335 billion, 2,078 in the sixth batch for K49.116 billion and 307 in the seventh batch for K14.5564 billion.
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  Chin State drew three domestic investments over the four years despite zero foreign investments in the state

  Chin State drew three domestic investments over the four years of the incumbent government, despite zero foreign direct investments in the state according to the Directorate of Investment and Company Administration (DICA). Those businesses brought into the capital of K3.368 billion. Chin State stands at the bottom in attracting domestic investments. Over the past four years, Yangon Region stood at the first place attracting 178 domestic investment businesses made by Myanmar Citizens, followed by Mandalay Region with 68 projects at the second place and Ayeyawady and Sagaing regions, with 45 each at the third place respectively. Additionally, domestic investments also flow into Taninthayi Region from 36 projects, Mon State from 28, Shan State from 25, Magway Region from 22, Kayah State from 16, Kayin State and Bago Region each from 15, Rakhine State from 11, Nay Pyi Taw from nine and Kachin from eight, the DICA stated.
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  Myanmar plans to reopen tourism industry by allowing Asia travelers in October 2020

  Myanmar, like many other countries, has shut down it’s the tourism industry since the emergence of the Covid-19 and is now planning to relaunch the industry for foreigners by allowing travelers from ASEAN and Asia in the fourth quarter this year, according to the Vice President U Henry Van Thio, who chairs National Committee for Tourism Department. The country also plans to set up ‘travel bridge’ to countries such as Laos and Cambodia, to which Myanmar doesn’t have direct flights and establish a ‘travel bubble’ with Thailand And Vietnam, to which Myanmar has direct flights. Moreover, the country eyes to expand its tourism with countries such as Japan, Hong Kong, Macao, and Korea, who can now control the virus.
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  Myanmar – China border trade hasn’t yet to resumed to normal

  Myanmar-China Border Trade has not yet returned to normal, but some trucks carrying rice leave the Muse border trade daily, U Min Thein, Vice President of Muse Wholesale Market, told Myanmar Business Today. “The border gates likely remain closed until the COVID-19 disappear,” he added. Authorities still ban people going through the border gates between Myanmar and China except for some freight trucks. Myanmar exports around 15,000-20,000 bags of rice daily as well as onion and green gram while China exports textile, construction materials, electronics, and food to Myanmar.
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  Myanmar Rice Federation (MRF) shown that State’s rice reserves to be sold at fairer price

  The rice (Aemahta variety), that have been purchased from export companies as country’s reserved rice, will be sold at a much fairer price, according to Myanmar Rice Federation (MRF). Those reserved rice will be sold through retail shops. The state’s emergency rice reserve is to ensure the food security, keep the price stable in the domestic market, continue to export them regularly, lessen the worries of the consumers during the pandemic, and not to harm the rice production of farmers due to the price fall when the new paddy is harvested.