Weekly Business News from Myanmar

Ministry of Hotels and Tourism (MOHT) issued the health guidelines for hotels and motels
The Ministry of Hotels and Tourism has issued health guidelines for hotels and motels, which are not currently used as quarantine facilities, as the country aims to open its tourism industry with domestic tourism. The guidelines include requiring hotels and guesthouses not to let guests stay in the establishment if he or she started to show the COVID-19 symptoms and temporarily isolate the suspected patients in a room until health authorities arrive. Moreover, the guidelines also require hotels and motels to provide information such as preventive measures of the COVID-19, and contact and locations of hospitals and clinics at the reception as well as registering guests with fever and informing the local health authorities.
Myanmar will generate its first Chinese-backed LNG power plant in Yangon very soon
The Ministry of Electricity and Energy (MOEE) says the overdue Chinese-backed liquefied natural gas (LNG) projects in Yangon will operate “very soon” now deliveries from Malaysia have arrived. On Thursday, Malaysia’s state-owned oil and gas company, Petronas, said it delivered 190,000 cubic meters of LNG for the Yangon projects, which will be the first of their kind in Myanmar. MOEE said the 400-megawatt (MW) plant in Thaketa Township and 350MW power station in Thanlyin Township would not run at full capacity while they were using a temporary jetty and mobile-filling platform. Meanwhile, Myanmar is constructing a jetty to receive LNG to allow the plants to run at full capacity.
The manufacturers in Myanmar expected to restart their production in coming months
Manufacturers in Myanmar are expected to restart production in the coming months after a fall in activity in April and May, according to data firm IHS Markit’s Myanmar Manufacturing Purchasing Manager Index (PMI) report published on June 1. The PMI - which ranges from 0 to 100 - plummeted to 29.0 in April, from March’s 45.3. Then, the PMI remained below 50.0 in May, as 38.9 in May. A reading above 50 indicates an overall increase compared to the previous month. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
Myanmar government’s stimulus package benefit 1,000 enterprises in three months
The government of Myanmar has launched its economic stimulus packages to help survive the local enterprises in the face of harsh economic uncertainties caused by the COVID-19 pandemic. On April 27, it announced an economic relief plan: ‘Overcoming as One: Covid-19 Economic Relief Plan’ However, it has granted credit to a total of 1,016 local enterprises between April 9 and June 2 using Covid-19 Funds, according to the Working Committee to Address the Possible Economic Impacts of COVID-19. The Myanmar Economic Bank, a state-owned bank, granted loans to local enterprises batch by batch.
The bilateral trade value between Germany and Myanmar reached near USD $ 400 million in the half months of 2019 – 2020 financial year
Trade value between Myanmar and Germany between October and March of the current fiscal year 2019-2020 crossed US$398.85 million, according to the data of the Ministry of Commerce. Myanmar’s export to Germany surpassed its import, with $302 million worth of export and $96.5 million valued import, according to the statistics released by the Ministry of Commerce. Beyond regional trade regime, Myanmar has established trade links with EU members. Germany is the biggest trade partner in the European Union, followed by France. The main export items are rice, pulses, tea leaf, coffee, garments on Cut-Make-Pack basis and fisheries. Meanwhile, machinery, data-processing equipment, electrical and optical goods, chemical products, motor vehicles and parts and pharmaceutical products, cosmetic, food and beverages and consumer goods are imported into Myanmar.
Japanese beverage giant Kirin launched Independent probes for its Myanmar military partnership
Japanese beverage giant Kirin has hired Deloitte Tohmatsu Financial Advisory to conduct an independent review of a Myanmar military-owned company with which it has multiple partnerships. Kirin faces international condemnation for its partnership as the Myanmar military stands accused of genocide against the Rohingya. On Friday, Kirin said it has appointed Deloitte to review the financial and governance structures of Myanma Economic Holdings Public Company Limited (MEHL), a conglomerate owned by the Myanmar military. The company said the review will determine the destination of proceeds from joint-venture businesses Myanmar Brewery Limited and Mandalay Brewery Limited “as a matter of urgency.” Kirin’s spokesperson told The Irrawaddy on Friday that apart from reviewing MEHL’s financial structure, Kirin is considering structural options for the joint-ventures as part of a review of their business relationship with MEHL.
The border trade volume between Myanmar and Thailand reached USD $ 2.7 billion in this financial year
The trade volume between Myanmar and Thailand has reached US$2.71 billion in total with the Hteekhee land border accounting for the largest volume of trade, according to the official statistics of Commerce Ministry. Myanmar-Thailand border trade totalled $2.711 billion between 1 October 2019 and 29 May 2020, which included $1.95 billion in exports and $757 million in imports. These figures declined by $103.9 million compared to the same period of last year. The bilateral border trade hit $2.82 billion in last year.
Government mulls USD $ 24 million loan to help Myanmar National Airlines (MNA) to cover its operational expenses
The government is considering a US$24 million bail-out plan to help Myanmar National Airlines (MNA) cover its operational expenses, U Win Khant, Permanent Secretary of the transport ministry, said during a Myanmar tourism forum on June 1. “The situation at MNA is pretty bad and the airline could require state protection to remain solvent," said U Win Khant. MNA is currently burning almost $4.8 million on average a month on operational expenses such as fuel, insurance and repairs. It has so far racked up $24 million in debt it has not been able to pay for over the past five months and is now asking the Ministry of Finance, Planning and Investment (MOPFI) for a loan.
Myanmar condemns the London-based Environmental Investigation Agency (EIA)’s last report on illegal teak exports to European Union through black market
Myanmar’s Ministry of Natural Resources and Environmental Conservation has disputed the London-based Environmental Investigation Agency (EIA)’s latest report which claims illegal teak from Myanmar is being shipped to Europe through the black market. “All the teak we export is legal,” U Kyaw Zaw Oo, the deputy permanent secretary of the ministry, told The Irrawaddy. On May 28, the EIA report, “The Croatian Connection Exposed – Importing illicit Myanmar teak through Europe’s back door”, says traders are shipping illicit teak into Europe, avoiding import rules to acquire valuable timber for high-paying clients for use in luxury products, like yacht decking. Illegal teak from Myanmar is not allowed to be traded in the European Union under the EU Timber Regulation (EUTR) since 2013.
Myanmar will collaborate with Singapore-based Infrastructure Asia (Infra Asia) to advance the implementation of priority infrastructure projects under Myanmar Project Bank
The Ministry of Planning, Finance, and Industry (MOPFI) will advance the implementation of priority infrastructure projects under the Myanmar Project Bank in collaboration with Singapore-based Infrastructure Asia (Infra Asia), said Daw Thway Thway Chit, director general of the Planning Department under the MOPFI. An agreement between the two parties was signed on May 27, under which the MOPFI and Infra Asia will jointly identify selected priority projects for potential private sector participation. Infra Asia was established by Enterprise Singapore and the Monetary Authority of Singapore to support infrastructure financing and development in the region. It aims to connect different parties and serve as a one-stop platform for the information exchange and sharing of best infrastructure practices in Asia. Such efforts will help regional governments better develop, finance and execute their infrastructure projects by leveraging on the expertise offered by its pool of partners comprising international companies and financial institutions.