Weekly Business News from Myanmar

Myanmar government purchase 100,000 pieces of personal protective equipment (PPE) from local factory
The government of Myanmar signed an agreement to purchase 100,000 pieces of personal protective equipment (PPE) equipment to be used by healthcare workers in the fight to contain the COVID-19 virus, a senior government official says. U Hein Htet, secretary of the Industrial Supervisory Committee of Bago Region, said the contract was signed between the Ministry of Health and Sports and bought Cobes Industries Myanmar Co Ltd on Wednesday. Cobes Industries is a Hong Kong-based company that has a subsidiary in Bago Region. “The company is selling the 100,000 pieces of PPE to the government at only the cost of their labour and they are even bearing the cost of the raw materials to make the equipment,” said U Hein Htet.
The bilateral trade between Thailand and Myanmar falls by USD $ 237.78 million as of 20 March in the 2019 – 2020 financial year
Bilateral trade between Thailand and Myanmar through the Htikhee border between 1 October and 20 March in the 2019-2020 financial years sharply fell to US$973.28 million from $1.2 billion registered in the year-ago period, according to the Commerce Ministry data. Over the five months period, exports through the Htikhee border stood at $959.16 million, while imports fell short of $14 million. Exports of natural gas from Taninthayi Region contributed to the enormous increase in trade through the Htikhee border in the previous fiscal, said an official from the ministry. Earlier, the Myawady border sees the largest trade among the Myanmar-Thailand checkpoints. The rise in exports through the Htikhee border boosted the value of the Myanmar-Thailand border trade in the 2018-2019FY. In the current fiscal, trade values at Htikhee border surpassed those registered at Myawady border.
Foreign investments flowed into the Special Economic Zones (SEZs) reached USD $ 84.267 million as of 6 March in the 2019 – 2020 financial year
Foreign investments of US$84.267 million have flowed into the Special Economic Zones (SEZs), under the Special Economic Zone Law, as of 6 March in the 2019-2020 financial year, according to the figures released by the Directorate of Investment and Company Administration (DICA), state media reported. Since its establishment, a total of 114 enterprises from 18 countries and four local businesses have ploughed in $1.929 billion as of end-February, 2019 in the zones, the investment source indicated.
Tanintharyi Tourism Committee granted licence for hotel business worth K 800 million
Taninthayi Regional Tourism Committee has issued a licence for K800-million-worth hotel business, said Deputy Director U Win Thein of the Directorate of Hotels and Tourism. The hotel will be developed by a local investor on the Strand Road of Myeik town. The construction will start this year, he added. Also, the committee has granted licences to three tourism companies at the second meeting of the committee this year, yet two companies surrendered the licences. “These licences are relinquished not because of the fallout in tourism industry with Covid-19 negative impacts,” he also highlighted. The committee has endorsed to extend the term of licences for tourism companies, hotels and tour guides at the meeting, the deputy director said. Lately, Taninthayi Region has become a popular spot among tourists. Thailand eyes Taninthayi Region for investment. The region also has smooth transportation, according to the regional investment committee.
The Central Bank of Myanmar (CBM) reassured that banking services will continue despite COVID – 19
Myanmar’s central bank has reassured citizens that banking services will not stop, including mobile banking and cash machines, amid the COVID-19 pandemic. The Central Bank of Myanmar (CBM) said more cash than usual was withdrawn from banks on Tuesday, following Myanmar’s first confirmed coronavirus cases. On Wednesday, the CBM said it had ordered all banks to make contingency plans to ensure the continuous operation of services during any COVID-19 outbreak. The CBM said it had been supervising banking operations to ensure services operated smoothly in “any situation”.
The new factories opened in Myanmar as other close amid COVID – 19 outbreaks
Due to raw material shortages caused by the coronavirus outbreak, eight factories have closed down, six others suspended operations and another two laid off workers in the period from the beginning of the year to March 10. The Ministry of Labor, Immigration and Population said it had helped more than 3,400 workers obtain benefits. During the same period, a total of 69 new factories opened in Myanmar, including 18 in the garment sector, 11 bag-making factories, 4 shoe factories and 36 factories in other sectors. These new factories created a total of 11,511 jobs, according to U Thein Swe, Union Minister of Labor, Immigration and Population.
The preparation for tourism industry are being undertaken in the post COVID – 19 period through the Community Based Tourism
Tourist arrivals in Myanmar are likely to fall this year amid the global coronavirus outbreak and the impact of the disease can be felt a lot the local tourism industry. Preparations are being undertaken to survive rapidly again the tourism industry in the post COVID-19 period through the Community Based Tourism depending on the Ayeyawady Dolphins in Si The village in Singu Township, Ayeyawady Region. The program aimed to achieve and sustain the community based tourism in Mandalay Region and to be ready for the post COVID-19 period, according to an official of Directorate of Hotels and Tourism.
The Central Bank of Myanmar (CBM) cut interest rates another 1 percent to aid economy due to the COVID – 19 global pandemic
The Central Bank of Myanmar (CBM) has dropped interest rates by an additional 1 percent as the country’s economy has slowed due to the COVID-19 global pandemic. CBM announced a 0.5 percent reduction in interest rates on March 12, saying it was needed to support the country’s economy. However, business people have criticized the move, saying it wouldn’t be enough to help the country’s declining economy. In its latest move, the bank said on Tuesday that it will reduce its interest rate from 9.5 percent to 8.5 percent, effective on April 1, in the hope of spurring economic growth. According to the latest directive, the minimum bank deposit rate will be lowered from 7.5 percent to 6.5 percent, while the maximum lending rate will be lowered from 12.5 to 11.5 percent for collateralized loans and from 15.5 percent to 14.5 for non-collateralized loans.
Thailand has closed several gates along the Thai – Myanmar border and will allow only goods through two crossing point as part of efforts to curb the spread of the COVID – 19
Myanmar’s trade with its ASEAN neighbour Thailand cannot help but be affected by the closure of crossing points along the countries shared border, a senior government official says. U Khin Maung Lwin, assistant secretary at the Ministry of Commerce said on Monday that Thailand has closed several gates along the Thai-Myanmar border to goods and people and will allow only goods through two crossing points as part of efforts to curb the spread of the COVID-19 coronavirus. The Thai government first announced the closure of the Mae Soat- Myawaddy Friendship Bridge No.1 in Kayin State on March 21. This was then followed by the closure of Friendship Bridge No. 2 on Monday. The latest closure will mean that only goods can move through Friendship Bridge No. 2.
UMFCCI and Department of Yangon Region Public Health and Medical Services held knowledge sharing on COVID – 19 provided to factory workers
Knowledge sharing and practical training for prevention of COVID-19 was held at UMFCCI in Yangon on Tuesday. It was jointly organized by UMFCCI and Yangon Region Public Health and Medical Services Department Chairman of UMFCCI U Zaw Min Win delivered an opening speech, followed by the sharing knowledge on COVID-19 by the official from the Public Health and Medical Services Department. The demonstration on systematic hand-washing was also made during the event. Team Leader, Yangon Region Public Health and Medical Services Department, Dr. Moh Moh Theingyi said “Hand-washing is very important for protecting from COVID-19. It should take for 20 seconds. The industries should provide the facilities for the employees such as basin, water supply and soap to wash their hands. Each person should have temporary screening. It needs to create work space at least 3-feet apart between each other.”