Weekly Business News from Myanmar

Myanmar Investment Commission (MIC) halves application fees for investors as coronavirus bites
Investors who wish to apply for permission to invest in the country will enjoy a 50 percent discount on application fees, the Myanmar Investment Commission (MIC) announced on April 9. This includes both Myanmar and foreign investors, the MIC said. The new fee structure will take effect from April 20 onwards and remain effective until the authorities review and revise the fees. “The main objective is to encourage investments and help businesses save costs in this difficult time,” said MIC director U Myo Min.
Foreign Direct Investment (FDI) in Myanmar exceeded more than USD $ 3.36 billion as of 3 April in the 2019 – 2020 financial year
Myanmar has attracted foreign direct investment of more than US$3.36 billion between 1 October and 3 April 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 has set an FDI target of $5.8 billion in the current fiscal, but we cannot measure the impact of Covid-19 at present, said MIC Secretary and DICA Director-General U Thant Sin Lwin. “The enterprises operating with imported raw materials could be affected to a certain extent. Sure, enterprises with a bigger number of labour forces will have to struggle amid the Covid-19 outbreak,” he stated.
Three factories notified closure even though there are over 120 factories shutters
Myanmar Investment Commission (MIC) has received the official notification of the closure from three factories, even though there are over 120 factories’ shutdown, DICA Director-General U Thant Sin Lwin said on 7 April. MIC has formed the monitoring group and the working group to address the possible economic impacts caused by Covid-19. The monitoring group is led by the Directorate of Investment and Company Administration (DICA). They found layoffs and temporary and permanent closure in the factories, he added. “What an unusual case is downsizing in the factories and temporary and permanent shutdown, although only three factories have notified MIC of their closures. The remaining carried out depending on the situations of the relevant factories and industrial zones. As of 1 April, 124 factories are reported to close down the operations. Of them, 36 are permanently closed, while five carry out temporary suspension, three downsize the workers, as per the report of the Yangon Region government”, he stated.
The development of Dawei Special Economic Zone (SEZ) expected to be delayed due to the outbreak of COVID – 19
Officials are expecting the outbreak of COVID-19 to slow the development of Dawei Special Economic Zone (SEZ) in Tanintharyi Region. “The virus is affecting the development process, including road construction,” said U Tin Htoo Naing, secretary of Dawei SEZ. Things are being delayed just as foreign investors were showing interest in the project. International investors were invited to invest in Dawei SEZ in October 2019, and many countries such as Singapore, India, Malaysia, Thailand, China, South Korea, Vietnam, Australia as well as several companies from Myanmar showed interest in investing in the SEZ.
The exports of finished industrial goods exceeded USD $ 5 billion as of 27 March in the current fiscal year 2019 – 2020
Exports of finished industrial goods have touched a high of US$5.09 billion between 1 October and 27 March in the current fiscal year 2019-2020, an increase of $452 million compared with the corresponding period of the previous financial year, according to the Ministry of Commerce. As per the figures provided by the ministry, exports of finished industrial goods totalled $4.64 billion during the same period in the 2018-2019FY. Additionally, the manufacturing sector has attracted the foreign investments of $432.74 million in the 2019-2020FY, according to the Directorate of Investment and Company Administration (DICA). Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent.
The exports of Myanmar’s fisheries products slow to a crawl since the COVID – 19 pandemic
Exports of Myanmar’s fisheries products to other countries have nearly stopped since the COVID-19 pandemic started and factories processing frozen fisheries products are now facing difficulties keeping their operations running, industry officials say. “Currently, buyers have almost stopped placing orders. Moreover, demand has declined in many countries. Also, the signing of new export agreements has stopped while the existing agreements have been suspended,” said U Tun Aye, chair of the Myanmar Marine Product Producers and Exporters Association. Exports of fisheries products to the EU have totally halted and there is only a little demand for lower-priced products from China, U Tun Aye said. Myanmar’s fisheries products from the sea are mainly exported to Europe and Asian countries while freshwater products are exported to Arab countries.
The value of share trade on the Yangon Stock Exchange (YSX) fall when compared the same period of last fiscal year despite an increase in trading volume
The value of shares traded on the Yangon Stock Exchange (YSX) in March has dipped to K1.42 billion compared with K1.48 billion recorded in February, despite an increase in trading volume, state media reported. The drop in total trading values last month is attributed to a fall in share prices. In January 2020, 196,836 shares worth K1.25 billion were traded on the exchange while 188,919 shares were traded on the exchange in February and 228,913 shares were traded in March.
Government calls off four state and regional investment forums due to the COVID – 19
Four state and regional investment forums have been cancelled due to COVID-19. “We postponed the investment forums to be held in Yangon, Bago, Monywa of Sagaing and Mandalay,” said U Aung Naing Oo, permanent secretary of the Ministry of Investment and Foreign Economic Relations. The investment forums serve as a platform for investors to explore opportunities to work with local businesses, beyond Yangon. As a result of the cancellations, investments could decline by as much as 40 percent, U Aung Naing Oo said. The Myanmar Investment Commission (MIC) on April 3 approved more than US$550 million in foreign direct investment for 11 projects and another K50 billion in local investments on April 3, even as the COVID-19 outbreak continues to develop in the country.
Four factories in Yangon and Bago regions will start producing face mask in Myanmar after Thingyan holidays
Four factories in Yangon and Bago regions will begin producing face masks after the Thingyan holidays amid soaring local demand for masks due to the outbreak of coronavirus, officials say. At present there are no factories primarily focused on producing the masks in Myanmar, so two factories in Yangon Region and two in Bago Region are being prepared to produce masks following instructions from the Ministry of Health and Sports and Yangon Region government. U Soe Htet, secretary of the Industrial Supervisory Committee of Bago Region said the effort was discussed with Cobes Industries Myanmar Bago Co, the local subsidiary of Hong Kong-based Cobes Industries, a producer of personal protective equipment (PPE). The government had signed a deal to purchase 100,000 pieces of PPE from Cobes and South Korea’s KM Healthcare Factory in Bago Region, last week.
Japan and Myanmar inked USD $ 445 million loans agreement for two projects Yangon – Myanmar railways upgrade project 1 and infrastructure development project in Thilawa
Japan and Myanmar officials have signed an agreement to obtain the Japan ODA loan for two projects — Yangon-Mandalay railway upgrade project phase 1 (part-3) worth Yen 40.604 billion and the infrastructural development project in Thilawa phase 3 worth Yen 7.339 billion, according to the Embassy of Japan in Myanmar. The Japanese Ambassador to Myanmar and the officials from the Ministry of Planning, Finance and Industry signed the loan agreement on 31 March 2020 concerning the two loan projects worth Yen 47.943 billion (approximately US$445 million).