Weekly Business News from Myanmar

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  Ministry of Commerce (MOC) commits to develop secure ecosystem for e-commerce in Myanmar

  As COVID-19 continues to disrupt the traditional workings of the Myanmar economy, e-commerce is expected to be a key driver of growth for the country post-pandemic, said U Aung Htoo, deputy minister of Commerce, during a virtual conference held on May 28. The Ministry of Commerce (MOC) will release an overview of a plan to develop e-commerce in Myanmar soon, he added. "It's a good time now to pave the way for e-commerce to develop and contribute to the growth of the Myanmar economy," U Aung Htoo said. "Mobile phone penetration is over 100 percent now so it is a good time to leverage on this for the further development of e-commerce."
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  Ministry of Electricity and Energy will not extend for major solar farm tender

  Myanmar’s Ministry of Electricity and Energy has rejected requests from prospective bidders for a major solar farm tender to extend its one-month deadline, which they say is impossible to meet because of the COVID-19 crisis and tough conditions attached. “At the moment, EPGE does not consider any extension of Bid Submission Date,” the Electric Power Generation Enterprise (EPGE) said, according to its clarification document seen by The Myanmar Times. The clarification to the invitation to bid was issued as part of the tender document, according to a letter from the EPGE addressed to potential bidders. The letter was dated May 29 and signed by EPGE managing director U Than Naing Oo.
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  Sino –Myanmar border trade decreased USD $ 162.6 million as of 15 May in the current fiscal year

  Sino-Myanmar border trade has registered a decrease of US$162.6 million between 1 October and 15 May in the current fiscal year, according to the Ministry of Commerce. Ministry of Commerce’s data shows the value of Sino-Myanmar trade at all five borders touched $3.75 billion in the current fiscal, which significantly plunged from $3.9 billion recorded in the year-ago period. This FY, border trade values totalled $3.07 billion at the Muse border, $106.7 million at Lwejel, $331.15 million at Chinshwehaw, $231.6 million at Kampaiti, and over $4 million at Kengtung. The Commerce Ministry’s data showed a drop in trade value at all those borders. The decline in trade is attributed to the trade suspension the tight security measures amid coronavirus worries.
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  Ministry of Electricity and Energy will launch a major new bidding round for oil and gas exploration this year

  Myanmar will launch a major new bidding round for oil and gas exploration this year, according to a senior energy ministry official. “It is almost certain that it [the bidding round] will be launched during this year,” said the Ministry of Electricity and Energy deputy permanent secretary U Htay Aung on May 26. The government is revising the Production Sharing Contracts, he added. “After amending [the terms and conditions], open blocks will be launched for international bidding,” officials said.
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  World Bank approved more USD $ 350 million loans for electricity, health in Myanmar

  The World Bank on May 29 approved US$350 million in International Development Association (IDA) credit to increase power generation in Myanmar and help the country meet a national goal of providing each citizen with access to electricity by 2030. It also approved $110 million in additional financing for the Essential Health Services Access Project (EHSAP), implemented nationwide since 2015. Myanmar must double its power production capacity in the next 5-7 years to meet that goal. Only half the households in Myanmar are currently connected to the national grid, which is the lowest population with access to electricity in Southeast Asia, said Mariam Sherman, World Bank Country Director for Myanmar, Cambodia and Lao PDR.
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  Myanmar Strategic Holdings (MSH) raised investment for Vietnam based franchise

  Myanmar Strategic Holdings (MSH) will be raising $6 million from Belgian PE firm Verlinvest SA and MSH’s largest shareholder, MACAN Pte Ltd, and will use the proceeds to acquire language training service brand Wall Street English franchise in Vietnam in a separate transaction, dealstreetasia reported. MSH said in a statement that it will issue 200,000 new ordinary shares to A-Star Education Holdings, a subsidiary of Verlinvest, and 100,000 shares to MACAN, at the agreed price of $20 per share. The share subscription is expected to complete by July 2020 through two tranches.
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  Government committed in developing secure ecosystem for e-commerce in Myanmar which will be a key driver of growth for the country post-pandemic

  As COVID-19 continues to disrupt the traditional workings of the Myanmar economy, e-commerce is expected to be a key driver of growth for the country post-pandemic, said U Aung Htoo, deputy minister of Commerce, during a virtual conference held on May 28. The Ministry of Commerce (MOC) will release an overview of a plan to develop e-commerce in Myanmar soon, he added. "It's a good time now to pave the way for e-commerce to develop and contribute to the growth of the Myanmar economy," U Aung Htoo said. "Mobile phone penetration is over 100 percent now so it is a good time to leverage on this for the further development of e-commerce."
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  Myanmar plans to borrow USD $ 200 million from the World Bank to assist rehabilitation farmers after COVID – 19 pandemic

  Myanmar’s government plans to obtain US$200 million (280.45 billion kyats) in loans to implement the National Food and Agriculture System Project (NFASP) to rehabilitate rural farmers after the COVID-19 pandemic is over. Deputy ministers for agriculture and planning explained the government’s plan to obtain loans from the World Bank’s International Development Association to Parliament on Tuesday. “The project is intended to rehabilitate agribusinesses [hit by COVID-19] and overcome the crisis by targeting low-income families and increasing productivity for food security,” Deputy Minister for Agriculture, Livestock and Irrigation U Hlaw Kyaw told Parliament.
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  Microfinance institutions (MFIs) in Myanmar will face COVID – 19 cash flow crisis

  Travel restrictions, government orders to defer repayments and lend at lower interest rates have reduced the ability of microfinance institutions (MFIs) in Myanmar to operate at a time when there is a pressing need for capital from the rural population due to COVID-19. The inability to collect repayments from some borrowers has led to road bumps in liquidity and cash flows for MFIs, and this, in turn, has limited the lenders' capacity to extend financing to others. Compared to the same period in 2019, the multi-donor Livelihood and Food Security Fund (LIFT) has seen a US$115 million shortfall in liquidity among MFIs it worked with last month, and this is expected to rise by another $60 million during the first half of May as COVID-19 restrictions persist.
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  Foreign Direct Investment (FDI) crosses USD $ 4.18 billion between 1 October and 22 May in the financial year

  The foreign direct investment flowing into Myanmar exceeded US$4.18 billion between 1 October and 22 May in the 2019-2020 financial year, including the expansion of capital by existing enterprises, according to the Directorate of Investment and Company Administration (DICA). The total figure includes investments of $91.85 million in the Special Economic Zones, under the Special Economic Zone Law. Myanmar set an FDI target of $5.8 billion in the current fiscal, but we cannot measure the impact of coronavirus pandemic at present, said MIC Secretary and DICA Director-General U Thant Sin Lwin.