Weekly Business News from Myanmar

COVID – 19 economic recovery plan and health safety protocols in place are aimed at rebooting the economy and society
COVID – 19 economic recovery plan and health safety protocols in place are aimed at rebooting the economy and society
The bilateral trade between Myanmar and Bangladesh increased USD $ 730 million in the third quarter of 2019 – 2020 fiscal year
Bilateral border trade stood at over US$ 747.63 million as of 26 June in the current 2019-2020 fiscal year (FY) which saw an increase of $730 million from the corresponding period of last year, according to the Ministry of Commerce. At this time last FY, Myanmar-Bangladesh trade through two borders hit $17.26 million, with exports worth $15.98 million and imports amounting to $1.27 million. When compared with last FY, this FY saw a significant increase in the value of exports by $427.42 million while the bilateral imports rose by $302.96 million. Between 1 October and 26 June, Myanmar exported $443.4 million worth domestic products to Bangladesh and imported goods valued over $304.2 million. Myanmar exports goods to Bangladesh through both maritime and land routes. Bilateral border trade is conducted mainly through the Sittway and Maungtaw points of entry. The products traded between the two countries include bamboo, ginger, peanuts, saltwater prawns and fish, dried plums, garlic, rice, mung beans, blankets, candy, plum jams, footwear, frozen foods, chemicals, leather, jute products, tobacco, plastics, wood, knitwear and beverages.
Yangon Region tops foreign investments pulling in over 600 enterprises over the four years of the incumbent government
Yangon Region tops foreign investments among the regions and states, attracting more than 600 enterprises over the four years of the incumbent government, according to the Directorate of Investment and Company Administration (DICA). Over the past four years, Yangon Region stood at the first place with 665 foreign enterprises, followed by Bago Region with 76 foreign projects at the second place and Mandalay, with 56 at the third place. Additionally, foreign direct investments also flow into Ayeyawady Region from 27 projects, Mon State from 16, Shan State from 12, Taninthayi from 10, Magway Region and Sagaing Region each from nine, Nay Pyi Taw from eight, Kachin from six, Kayin from five, Rakhine from four, and Kayah from two, the DICA stated. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis. The investments in the regions also flowing into the hotel services, and other services sectors as well. To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, the British Virgin Islands and Seychelles are arriving in the region.
EU states suspend USD $ 100 million of Myanmar’s debt payments during COVID – 19
Six European Union states have deferred debt payments from Myanmar worth nearly US$100 million for the rest of this year to help the country’s efforts to focus on economic recovery from the COVID-19 pandemic. On Wednesday, the ambassadors of the European Union, France, Germany, the Netherlands, Finland, Austria and Poland announced that the EU has agreed to Myanmar’s request to its bilateral creditors to defer payments totaling US$98 million (134.5 billion kyats), constituting 20 percent of Myanmar’s debt payments due during the May-December 2020 period. The ambassadors said in their letter to U Soe Win, Union minister of planning, finance and industry, on Wednesday that “Myanmar is fully eligible for support under the debt moratorium (Debt Service Suspension Initiative).” The letter highlights the suspension is “in order to focus efforts on economic recovery from COVID-19.”
The value of shares trading on the Yangon Stock Exchange (YSX) increased by about K 100 million in June
The value of shares traded on the Yangon Stock Exchange (YSX) in June slightly rose to K1.3 billion, showing an increase of about K100 million compared with trading value in May, according to a YSX’s monthly report. The trading volume also surged to 221,682 shares in June. In January 2020, 196,836 shares worth K1.25 billion were traded on the exchange while 188,919 shares, with an estimated value of K1.48 billion, were traded on the exchange in February and 228,913 shares valued K1.42 billion were traded in March respectively. It touched the lowest of K902 million with 173,808 shares in April. It rose to K1.2 billion with 200,416 shares being traded in May, the exchange’s monthly report showed. At present, shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd (TMH) and the Ever Flow River Group Public Co. Ltd (EFR) are being traded on the exchange.
Local cooking oil mills holds only 5 percent of market shares in the domestic oil market for this year due to the pandemic
Local cooking oil mills have been struggling to have market share in the domestic oil market for years. Their struggle continues as they only manage to hold 5 percent of the market, U Khin Soe, President of Mynamar Edible Oil Millers Association, told Myanmar Business Today. “We have been struggling even before the COVID-19,” he continued. Their trouble can be traced back as far as the 2000s when imported oils crushed local producers and got worse after the emergence of chemical that can make oil smell like groundnut oil or sesame oil in 2012. Their market share has shrunk over the years, he said. It is mainly because of the price. Consumers, most of them are working people, chose price over quality as a viss (1.63kg) of groundnut oil, sunflower oil, or sesame oil is around K6,000 while imported mixed low-quality oils are sold half of that price.
Businesses struggle to get back on their feet as the domestic tourism reopens in Myanmar
Domestic travel in Myanmar began to reopen this month, with tourism businesses working to revive the industry as the sector is among those most affected by the COVID-19 pandemic. After Myanmar confirmed its first COVID-19 cases in late March and the government imposed restrictions on travel, the tourism sector saw revenues plummet to zero in April and May. In late May, state and regional tourism authorities ran health and safety checks on hotels, restaurants and transportation businesses and issued safety certificates to those that complied with standards from the Ministry of Health and Sports, according to the Ministry of Hotels and Tourism (MOHT). Under Myanmar’s September 2018 Tourism Law, local governments can decide whether to close or open tourism in their area. The law granted state and regional governments authority over licenses for hotels, tour companies, tour guides and transportation operators.
The bilateral trade between Thailand and Myanmar border fell by USD $ 520 million as of 19 June in the 2019 – 2020 financial year
Bilateral trade between Thailand and Myanmar through the Hteekhee border between 1 October and 19 June in the 2019-2020 financial year sharply fell to US$1.47 billion from $1.99 billion registered in the year-ago period, according to the data from the Ministry of Commerce. Over the eight months of current fiscal, exports through the Hteekhee border stood at $1.45 billion, while imports fell short of $18.6 million. Exports of natural gas from Taninthayi Region has contributed to the enormous increase in trade through the Hteekhee border since the previous fiscal, said an official from the ministry. Earlier, the Myawady checkpoint sees the largest among the Myanmar-Thailand land border trade. The rise in exports through the Hteekhee crossing had boosted the value of the Myanmar-Thailand land border trade in the 2018-2019FY. In the current fiscal, trade values at Hteekhee checkpoint also surpassed those registered at Myawady crossing.
The trade deficit reached over USD $ 1.73 billion in about nine months of 2019 – 2020 fiscal year
As import surpasses export in about nine months of this fiscal year, there has been a trade deficit of over US$1.73 billion exceeding US$770 million compared to the same period of last year, according to data from the Ministry of Commerce. Myanmar exported goods worth US$12.644 billion from October 1 to June 19 in the current 2019-2020 fiscal year, exceeding over US$570 million compared to the same period of last FY. However, import value reached US$14.398 billion exceeding US$1.346 billion compared to last year. Therefore, there has been a trade deficit of US$774.743 billion.
Thailand will reopen 8 border checkpoints with Myanmar to resume cross-border cargo transport and trading from 1 July 2020
Thailand will reopen 37 checkpoints on the border with all neighbouring states, including Myanmar, to resume cross-border cargo transport and trading from July 1, Xinhua reported. The 37 checkpoints on the borders with Myanmar, Laos, Cambodia and Malaysia, so that cargo can be transported, and traders allowed to cross the border.