Weekly Business News from Myanmar

Myanmar hotel and tourism businesses will be get one year exemption on licence fees
Myanmar hotel and tour businesses will be exempted from paying licence fees for a period of one year as the sector continues to struggle against the COVID-19 pandemic, the hotel ministry said on April 16. The fees for applying for a new license or renewals, which include a hotel business fee, tour agencies fee, tour guide fee and hostel fee, will be exempted from April 1, 2020, until March 31, 2021, the statement from the Ministry of Hotel and Tourism said.
Myanmar’s mineral exports increased USD $ 537.8 million over the first half of 2019 – 2020 financial year when compared to the same period of last financial year
Myanmar’s mineral exports have shown a marked increase this fiscal, touching US$1.13 billion between 1 October and 3 April, an increase of $537.8 million compared with the year-ago period, according to the data from the Ministry of Commerce. In the corresponding period of the previous financial year, mineral exports were pegged at just $596.27 million. Both private and public sector mineral exports have recorded an increase in the current fiscal, with private sector exports valued at $679.24 million and public sector exports estimated at $454.87 million. So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, according to the Ministry of Natural Resources and Environmental Conservation.
Thailand’s Kasikorn Bank is planning to expand digital presence in Myanmar’s retail market
Thailand’s Kasikornbank is planning to expand into Myanmar’s retail market with a focus on digital services. The Central Bank of Myanmar on April 9 approved the Thai bank’s acquisition of a 35 percent stake in Ayeyarwaddy Farmers Development Bank (A Bank), making it the first foreign commercial bank to take a stake in a local lender. A Bank is the second Myanmar bank to welcome foreign shareholders. Kasikornbank said in a statement it would acquire its stake in A Bank through its Kasikorn Vision subsidiary, which has a budget of K690 billion ($428 million) for overseas commercial opportunities. That stake has been reported to be worth $40 million. Pattarapong Kanhasuwan, Kasikornbank executive vice president, said that the Thai bank is keen to expand into a digital bank in Myanmar and the region through an “asset-light and digital expansion strategy”.
The total trade value at 18 border trade camps up by USD $ 360 million as of 3rd April of this financial year despite export sector drop by USD $ 99 million
The total trade value at 18 border trade camps has risen by US$360 million as of 3rd April of this fiscal year despite the export sector drop by $99 million, according to the Ministry of Commerce. From 1 October to 3 April of 2019-2020FY, the total border trade value has amounted to $5.73 billion, an increase of $360 million compared with the same period last year. The total border trade value as of 3 April this FY included $3.78 billion in export and $1.94 billion in import. Compared with the last FY, the export earnings dropped by $99 million while the import value increased by $459 million. This time last year, the border trade was valued at $5.37 billion.
Myanmar’s manufacturing conditions deteriorated in March due to the coronavirus outbreak impacted output
Manufacturers in Myanmar experienced their worst month on record in March as the worldwide coronavirus outbreak impacted output, demand and purchasing, according to Purchasing Managers’ Index (PMI) survey data from a London-based information provider IHS Markit. IHS Markit released its latest report on Myanmar’s Manufacturing PMI on April 1. The headline IHS Markit’s Myanmar Manufacturing PMI is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases. Any figure greater than 50 indicates overall improvement of the sector. Myanmar PMI fell to 45.3, the lowest since survey began in December 2015, indicating contractions in output, new orders and inventories. Suppliers’ delivery times were also the longest on record.
Myanmar Agriculture Development Bank (MADB) reduced interest rates on agro loans amid COVID – 19
Myanmar Agriculture Development Bank (MADB) has reduced its interest rates on agricultural loans, a bank announcement stated. MADB announced the reduction of interest rates included the agricultural loans, the JICA loans and the loans provided for the agricultural sector by Myanma Economic Bank (MEB) to the local farmers so that the agricultural loans can be obtained at lower interest rates. The interest rate for the agricultural loans provided by MADB is reduced to 7 from 8 per cent. Similarly, the interest rate for JICA’s agricultural and rural development loans are lowered to 6.5 from 8 per cent. And the project interest rate for MEB is decreased to 8 from 9 per cent. MADB has also changed the interest rate for the saving accounts of the farmers. The rate will be 6.5 from 8 per cent.
Myanmar Government and local businesses are lend hand to those in need in Myanmar during virus outbreak
The Myanmar government and local businesses are providing assistance and donating to those in need during the COVID-19 outbreak. While it has so far infected 22 people in the country, the economic consequences of the virus has been swift and unforgiving, with more than 10,000 minimum wage workers rendered jobless and a rising number of businesses forced to shut down. To provide some relief, the National-level Central Committee on Prevention, Control, and Treatment of COVID-19 on April 6 announced that it would distribute five essential food items to working class households which do not have daily income during the long Thingyan period. One family would get eight pyi of rice, 50 kyattha of cooking oil, 50 kyattha of salt, one viss of pulses and one viss of onions.
The builders grasp chance to apply for construction permits in Yangon City through online system
Urban area of Yangon is wider and wider whereas newly-constructed buildings are mushrooming day by day. In constructing modern high-rise buildings, it was necessary to take a long time for seeking construction permits and for submitting applications at different levels. Currently, applicants are allowed for seeking construction permits through online system in Yangon City. Test running “Yangon City Development Committee implements online service system while studying things how to carry out reform process for issuing permits of building construction in Yangon. International Finance Corporation-IFC which is member of the World Bank assists Yangon City Development Committee in realizing the online system for issuance of the construction permit. The Myanmar Architect Council and the Myanmar Engineering Council sought assistance from IFC which conducted training to those who would participate in the service project. The online service was launched in August 2019,” said Daw Hlaing Maw Oo, Secretary of YCDC.
The bilateral trade between Myanmar and China resumed USD $ 10 million border trade per day
The bilateral border trade between Myanmar and China has declined by over US$139 million as of 27 March because of the spreading of Coronavirus (Covid-19), according to the Ministry of Commerce (MoC). The bilateral border trade has been dropping by $1 million per day since the trade between Myanmar and China has resumed at the end of February. Now, Myanmar can trade over $10 million worth commodity per day, announced the Ministry of Commerce. Although the trade through Muse 105th Mile trade zone is not suspended after China has restricted the travelling to control Covid-19, the bilateral trade has decreased by over $1 million. Starting from 24 February 2020, the trade operation has resumed and the trade value has reached the normal situation of above $10 million per day, stated the announcement by the Ministry of Commerce.
Test runs for one of Myanmar’s emergency power plant will take place this month
One of Myanmar’s five emergency power plants will carry out test runs this month after missing an initial deadline to go live on March 31. The Ministry of Electricity and Energy said in an April 13 statement that the 150 megawatt gas plant in Ahlone township will conduct test runs in this coming week before full operations can begin. It is led by state-run China Energy Engineering Group (CEEC), also known as Energy China. Some blackouts, expected to last for a few hours, will take place during the test runs on April 15 and 20. The townships affected are Kamayut, Yankin, Tamwe, Bahan, South Okkalapa, Thingangyun, Mingalar Taung Nyunt, Pazundaung, Bohtataung, Pabedan, Kyauktada on April 15, and Dagon, Kyeemyindaing, Sanchaung, Bahan, Lanmadaw, Latha, Pabedan, Kyauktada, Pabedan, Botahtaung on April 20. Disruptions are expected to last for a couple of hours.