Weekly Business News from Myanmar

UMFCCI launched an online loan service system for Coronavirus hit businesses
The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) has launched an online loan system for the Coronavirus-hit businesses, according to the working committee to remedy the economic impacts caused by Covid-19. Applications can be submitted to the UMFCCI head office, and region and state office of the Chamber of Commerce and Industry every day during the period from 30 March to 9 April 2020, according to a notification released on 29 March 2020. However, in a bid to avoid gathering, reduce person-to-person contact and protect from the possible spread of Covid-19, the online system has been launched. Loan applications can be processed on https://umfccicovid19loan.mitcloud.com.
Myanmar Government will fully adopt online procedures in issuing import, export licences for more than 100 types of goods starting April 1, 2020
The Ministry of Commerce has announced that it will fully adopt online procedures for issuing import and export permits for more than 100 types of goods starting April 1, 2020, as part of efforts to implement social distancing to stop the spread of COVID-19 in Myanmar. “The move is being made with the aim of avoiding crowded situations, but there will be difficulties in implementing it at first. We’ll also need to improve the fully online system to cope,” said U Khin Maung Lwin, assistant secretary at the Ministry of Commerce. “We’re facing a great health risk, so the move is good for companies as well as in terms of prevention of the disease, and hopefullyit will speed up the issuance of the permits,” said U San Main, a business owner.
World Bank warned that Myanmar's economy slows due to the poor to bear brunt of impact as COVID – 19
Myanmar’s GDP growth is projected to slow to between 2 and 3 percent in the current fiscal year due to the COVID-19 pandemic, with the brunt of the outbreak’s economic impact likely to be borne by poor and vulnerable households across the country, the World Bank warned. In its latest report released Wednesday, “East Asia and the Pacific in the Time of COVID-19”, the bank said Myanmar’s growth is facing strong headwinds due to its exposure to the COVID-19-related slowdown in China and around the world. The World Bank said manufacturing activity and exports are expected to slow throughout the remainder of the fiscal year. FY2019-20 started on Oct.1, 2019 and ends on Sept. 30. With travel and border trade restrictions in place, the impact will be felt in Myanmar’s tourism-related services, agricultural exports to China, and in supply-chain disruptions to the manufacturing sector, particularly for garments, which account for 13 percent of exports, the bank said.
The construction sector slowed around 30 percent due to the COVID – 19 pandemic
Industry insiders say that the country’s construction sector has slowed by around 30 percent due to the COVID-19 pandemic. “There are construction projects that have been suspended due to a shortage of imported building materials and some have been stopped temporarily due to cash flow problems. About 70pc of projects are still running as usual. The situation is not so bad yet,” Myanmar Construction Entrepreneurs Federation (MCEF) Chair U Shein Win told The Myanmar Times. However, if the situation worsens or drags on longer than expected, more construction projects may stop, he warned. “Health is the most important thing. Construction projects have to stop if the government calls a halt on projects as a precaution to stop the spread of the virus,” said U Shein Win.
The value of Sino – Myanmar bilateral trade totaled over USD $ 4.5 billion in October and January of 2019 – 2020 fiscal year
The value of Myanmar’s trade with China through maritime trade channels totalled over US$4.5 billion in October and January of 2019-2020 fiscal year, including $2.108 billion worth of exports and $2.39 billion for imports, according to the data released by the Ministry of Commerce. Meanwhile, Myanmar’s regional trade with ASEAN countries touched a high of $4.2 billion. Myanmar primarily exports agro-products to China through land borders. However, trade-in agricultural products are frequently halted on account of China clamping down on illegal trade in border crossings.
Small and Medium-Sized Enterprises (SME) start suffering the effects of coronavirus outbreak
Some small and medium-sized enterprises (SME) have started suffering from the effects of coronavirus outbreak, business owners say. “It has already affected the country’s economy very much. Especially, hotels. As they have lost customers, they have no money to pay for their employees’ salaries. Restaurants and shops are facing difficulties also. Many SME businesses are now relying on delivery apps and messengers but this is not extensive enough to make up for lost walk-in customers. People don’t dare to go outside,” said U Min Banyar San, secretary of the Myanmar Ethnic Entrepreneurs Association (MEEA). Ko Khine Zaw, founder of a company that makes the OBO brand of instant Mohinga, said sales of food has increased, recently. “As my business is supplying food, there is no obvious impact but some SMEs are facing difficulties as their employees have returned to their hometowns,” said Ko Khine Zaw.
Ministry of Commerce (MOC) organized a coordination meeting to control high sale price to the health equipments and goods
The Ministry of Commerce Nay Pyi Taw and Yangon held a coordination meeting through video conference system to control high sale price to the health equipments, medicines, foodstuffs for the prevention, control and treatment of Coronavirus Disease 2019 (COVID-19) at the Ministry in Nay Pyi Taw, Sunday. At the meeting, permanent secretary U Aung Soe said that some persons are selling the goods with high price by taking opportunities on the irregular border trade and maritime flow in regard with coronavirus disease. The Ministry is cooperating with associations for the price of health protective equipments, medicines and food to be stable in the market. He also added that the basic food such as rice, chili, onion and beans are in sufficiency in local as these products are produced by Myanmar and coordination is being made for the safety of oil.
Government announced the priority sectors for emergency low – interest rate loans
The committee set up by the government to handle the economic impact caused by the COVID-19 pandemic has issued a statement on which sectors of the economy would be prioritised for emergency low-interest rate loans that are part of a stimulus package. The statement issued by the task force says that cut-make-pack enterprises in the garment industry, hotels and tourism businesses, and small and medium enterprises would be given preference for the loans. In the announcement, the task force said that these sectors are priorities in the country’s economy and also the ones most immediately affected by the global economic slowdown brought on by the pandemic.
More than 160 export and import items will get online licence system during an emergency period of COVID – 19
More than 160 export and import items will get online licences starting from 1 April, the Trade Department under the Ministry of Commerce stated. HS codes for 91 import items and 73 export items have been issued for the fully online system during an emergency period of Covid-19. As per the fully online licencing system, only items registered under the HS code line are available. The applicants need to fill out the online application and the invoice and approval from the related departments are required to be attached in PDF format. The necessary guidelines for the online systems have been shown on the website. They can see their application status online. The ministry has launched the online licencing system for export and import businesses starting from 1 April, with a view to reduce the person-to-person contact and mitigate the spread of COVID-19.
More garment factories in Myanmar stopped their operations as the orders from European Union countries have cancelled due to the COVID – 19 pandemic
Update: More garment factories stopped operations in Myanmar as European Union countries, a major export market, cancelled orders last week amid the spread of the COVID-19 pandemic, a senior industry leader said. U Myint Soe, chair of Myanmar Garment Manufacturers Association (MGMA), said the EU market accounts for 70 percent of the country’s garment export. “All operations of the factories that have accepted orders from the EU have stopped. I don’t know how we will deal with this issue,” he said. The bad news came as the supply of raw materials from China re-started to flow back into the country after three months of stoppage due to the virus outbreak. “We began to receive raw materials from China. We have no more raw materials problem. Now, the EU no longer accepts our garment exports. It happened since last week,” U Myint Soe said.