Weekly Business News from Myanmar

The Central Bank of Myanmar announced that all banking operations hours will be now 10 am to 2 pm starting from April 28
All banks in Myanmar will open from 10am to 2pm starting April 28 and last for the duration of COVID-19, the Central Bank of Myanmar (CBM) said on April 24. The decision was made after a video conference between the CBM and private banks on April 21 with the aim of controlling the spread of the deadly virus among bank employees and for banking operations to continue smoothly, the statement said. Under the original announcement No 14 of the central bank dated August 2, 1999, operating hours of banks are designated from 9:30am to 3pm on weekdays and on the last working day [salary day] the working hours are from 8:30am to 2:00pm.
Government set to unveil COVID – 19 economic response plan that will expand economic stimulus and social protection measures
Due for release in the coming days, the COVID-19 Comprehensive Response Plan will include new economic stimulus measures and increased funding for the health sector, as well as detail on how the plan can be funded. The government is set to unveil a COVID-19 response plan that will expand economic stimulus and social protection measures while also boosting healthcare spending to better prepare the country for an expected rise in coronavirus cases. The COVID-19 Comprehensive Response Plan is likely to be released in the coming days, Frontier understands, with the government only waiting for development partners to provide feedback on the final draft.
Myanmar state-owned and private hotels receive land lease payments for six months to ease the pressure wrought by COVID-19
The government will defer land lease payments for six months for a total of 47 state-owned and private hotels in Myanmar to ease the pressure wrought by COVID-19, the Ministry of Hotels and Tourism announced on April 21. The next land lease payment is due September 30. Hotels which are no longer in operation are not included. "In general, the land leases for 26 state-owned hotels and 21 hotels run by foreign investors or as part of joint ventures with local partners have been deferred," said U Myo Myint, director of the Ministry of Hotels and Tourism. Due to the spread of COVID-19 spread in Myanmar and the rest of the world, tourist arrivals to Myanmar have collapsed and hotel and tourism businesses have been severely affected.
State Counsellor chastises against factory owners to shut down factories and avoid mass gatherings at workplaces until COVID-19 inspections
Action will be taken against factory owners who have flouted a government order to shut down factories and avoid mass gatherings at workplaces until COVID-19 inspections have been carried out at their premises, State Counsellor Daw Aung San Suu Kyi said on April 22. Factories and workshops around the country will be allowed to reopen after the inspections have taken place between April 20 and 30, with those manufacturing essential goods such as pharmaceuticals and food to be given priority. But few have heeded the government's order to close their operations for the period. During a teleconference with the State Counsellor, U Pyi Thit Nyunt Wai, chair of the Confederation of Trade Unions of Myanmar, reported that several garment factories in Yangon's Hmawbi and Hlaing Tharyar townships, including Shwe Nay Win, KHL, YJ, Myanmar Rock and Global and Universal were still open on April 22.
Some customs restrictions to be eased to facilitate the import and export process during the COVID-19 outbreak
The government will reduce trade restrictions and red tape to facilitate the import and export process during the COVID-19 outbreak. Starting April 20, the customs department will reduce customs duties for businesses operating with the Myanmar Automated Cargo Clearance System (MACCS). Paperwork will also be streamlined, with an electronic version of Form D for preferential tariff treatment in Asean to be issued to simplify procedures between all the Asean countries.
PTTEP Myanmar Asset will move forward with its operations despite the global oil price crisis amid COVID – 19
PTTEP Myanmar Asset issued an announcement that it remains confident to move forward with its operations in Myanmar as planned despite the current global oil price crisis and the spread of coronavirus (COVID-19). This is attributed to the implemented Business Continuity Management (BCM) plan to ensure uninterrupted gas supply to our buyers – MOGE and PTT. The company is ready to be flexible with its investment plan to cope with the challenging circumstances in the future. “The pandemic COVID-19 and the global oil price collapse of over 60% since March would not make a significant impact on PTTEP’s sales volume this year. The average sales volume, 388,000 barrels of oil equivalent per day (BOED) previously targeted for this year is expected to decrease by less than 5% as sales volume of natural gas, which represents the majority of PTTEP’s products, has already been secured in accordance with the sales agreement,” Mr. Phongsthorn Thavisin, President and Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said.
Ministry of Commerce (MOC) issued over 67,000 Preferential Certificates Origin (Cos) through online platform so far
The Ministry of Commerce (MoC) has issued over 67,000 preferential Certificates of Origin (COs) so far for exporters and importers in Myanmar through electronic means, the ministry stated. The ministry helped traders save time and cost as it launched online service for the COs in May 2019. All the documents can be uploaded electronically and applicants can make an online payment. They can print out the certificate. The online applications can be submitted to the following MoC branches, MoC office on Strand Road and Yangon, Department of Trade in Yankin Township and Thilawa SEZ. The MoC has also released Standard Operating Procedures (SOPs) for private businesspersons seeking Certificate of Origin (CO), per the new trade environment in foreign countries. According to a news release from the MoC, businesspersons can apply for COs at the export-import office in Yangon and Nay Pyi Taw; the Thilawa Special Zone; and, at the 14 border trade checkpoints — Muse, Lweje, Chinshwehaw, Kampaiti, Tachilek, Myawady, Kawthoung, Myeik, Tamu, Reed, Htikhee, Kengtung, Maese, and Mawtaung.
Government will reduce trade restrictions and red tape to facilitate trading process during the COVID – 19 outbreak
The government will reduce trade restrictions and red tape to facilitate the import and export process during the COVID-19 outbreak. Starting April 20, the customs department will reduce customs duties for businesses operating with the Myanmar Automated Cargo Clearance System (MACCS). Paperwork will also be streamlined, with an electronic version of Form D for preferential tariff treatment in Asean to be issued to simplify procedures between all the Asean countries.
The annual inflation rate in Myanmar which based on the Consumer Price Index rises to 9.2 percent in February 2020
The annual rate of inflation in Myanmar, based on the Consumer Price Index, stood at 9.2 per cent in February 2020, according to a report released by the Central Statistical Organization under the Ministry of Planning and Finance. The figure has remained above 8 per cent since June 2019. The inflation rate stood at 7.28 per cent in March 2019 and gradually inclined. It reached a peak of 8.61 per cent in September and dipped in November. It touched the highest level at 8.81 per cent in December 2019 because of the high season. Afterwards, despite the drop in fuel oil price and gain in local currency, power tariff hike led to higher inflation rate up to 9.2 per cent in February 2020.
Myanmar factories will face legal actions if they are ignoring COVID – 19 instructions
Myanmar’s State Counselor Daw Aung San Suu Kyi says factories will face legal action if they defy COVID-19 instructions. “The government’s instructions are not issued for pleasure. We do not want factories to close. It creates a burden for the government and the workforce. We have only ordered factory closures when necessary,” said the State Counselor. On Sunday, the Ministry of Labor ordered all factories to close until April 30 and only reopen when COVID-19 preventive measures had been inspected. However, many factories are still operating, according to workers and labor rights organizations. On Wednesday, U Maung Maung, chairman of the Confederation of Trade Unions in Myanmar (CTUM), told the State Counselor via a video link that factories were ignoring the government’s order despite being told to report to the labor department.