ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Local energy firms weigh in on recent government tender for Myanmar’s biggest solar power project

  Local energy companies are pessimistic about a recent government tender for Myanmar's biggest solar power project. "There are some tall hurdles for local investors who wish to bid for the tender. The government should also consider local investors for the project but the terms and conditions rule out most Myanmar investors," said U Kyaw Kyaw Hlaing, chair of the Smart Group. Among the requirements investors must meet to qualify to bid for the 1060-megawatt solar plant project is an annual income of US$20 million for three consecutive years and experience carrying out a minimum of three independent power plant projects within the past ten years, of which at least one must involve solar power. "These conditions rule out pretty much all the local businesses," said U Kyaw Kyaw Hlaing. He noted that although some local companies have solar technology, the lack of commercial-scale solar projects in Myanmar implies few would have the experience required to bid. Currently, there is only one large scale solar-powered plant signed with the government - the 40MW solar plant located in Minbu, Magwe Region.
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  Sagaing Region Investment Committee (SRIC) has endorsed over 30 businesses as of the end of May in the current 2019 – 2020 fiscal year

  The Sagaing Region Investment Committee (SRIC) has endorsed over 30 domestic proposals, with an estimated capital of over K17 billion and about US$3 million, and $1.3 million worth one joint venture so far, according to the data released by the Directorate of Investment and Company Administration (DICA). Those enterprises are engaged in the water park and garden; cultivation and manufacturing of crops; crops drying, categorizing and rice milling and processing activities; manufacturing and marketing of concrete pillar; manufacturing of motorcycle parts and accessories; manufacturing of special bamboo furniture; hotel services; packing and wrapping equipment supplier; processing and packaging of sugar cane mud; and private school. The committee also discussed investment matters and endorsements concerning one foreign project and two domestic proposals at the meeting held on 16 June.
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  Myanmar Business Environment Index (MBEI) survey shown that offtake of economic recovery package low among private businesses

  COVID-19 has adversely affected the overall economy and the private sector businesses in Myanmar and the response from the government has been swift with various packages for recovery both from the supply as well as the demand side. However, a recent telephonic survey during end Apr-early May, among over 750 private businesses (food and beverages, manufacturing, accommodation, wholesale and retail trade, transport and storage) by The Asia Foundation point out that “most businesses were not aware of the government support programmes for the enterprises impacted by COVID-19”. This implies that more intense efforts at awareness-raising may be required. The private sector is taking steps in terms of protecting the workers and customers through measures of social distancing and sanitation practices and there is an overwhelming satisfaction on the preventive steps taken by the union government as well state/regional governments. Myanmar Business Environment Index (MBEI) survey points out that about 29% of the 750 enterprises surveyed have been completely closed at the time of the survey. A majority of them have been closed in Apr’20. About half of them have reduced their operations considerably. Employees safety and lack of demand are the prime reasons for the closure of business establishments. It is interesting to note that restrictions of movement within and across townships are the prime reason for slack in demand for many business establishments. Also, a majority of them have voluntarily initiated preventive and safety measures before the government announced them.
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  Myanmar government prepared to manage further economic fallout under COVID – 19 Economic Recovery Plan (CERP)

  The Myanmar economy is expected to deteriorate further this year as a result of COVID-19, State Counsellor Daw Aung San Suu Kyi said during a meeting with key finance ministers on June 16. She said any economic damage caused by the pandemic so far is likely to worsen in the coming months and that Myanmar is only just beginning to feel the economic impact of COVID-19. "The most damage will be felt in the third and fourth quarter of the year but we would like the public to know that financial preparations to counter to fallout have already been made," the State Counsellor told Minister of Investment and Foreign Economic Relations U Thaung Tun, Minister of Planning, Finance and Industry U Set Aung and Union of Myanmar Federation Chambers of Commerce and Industry chair U Zaw Min Win at the meeting.
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  China and Myanmar have opened a “fast-track lane” for essential personnel exchanges

  China and Myanmar have opened a "fast-track lane" for essential personnel exchanges, Xinhua reported. Zhao Lijian said at a press briefing that a number of necessary personnel in oil and gas, power, and infrastructure projects will be exchanged between the countries in a two-way, return-to-work initiative known as a "fast-track lane".
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  Myanmar’s exports up over USD $ 500 million as of June in the current 2019 – 2020 fiscal year when compared to the same period of previous year

  Myanmar’s exports have witnessed an increase of over US$500 million as of 5 June in the current fiscal year2019-2020 compared with the year-ago period, according to the Trade Department under the Ministry of Commerce. Myanmar’s exports between 1 October and 5 June in the current fiscal shot up to US$12.1 billion from $11.6 billion registered in the corresponding period of the previous fiscal, the figure reflects an increase of $503 million compared with the year-ago period, according to data from the Ministry of Commerce. Similarly, the imports this year exceeded $13.73 billion, which rose from $12.34 billion registered in the same period of last year, showing an increase of $1.39 billion.
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  Myanmar solar tender conditions knocked out foreign bidders despite the ban on travel restrictions and quarantine measures

  Myanmar has effectively excluded potential foreign bidders from a major solar farm tender by imposing tough conditions, including a refusal to accept online submissions even while a COVID-19 ban on international flights has been extended. The Ministry of Electricity and Energy’s Electric Power Generation Enterprise (EPGE) informed companies that had purchased tender documents that “online submission is not allowed” despite the ban on travel restrictions and quarantine measures. In a June 12 note signed by EPGE managing director U Than Naing Oo in response to a query by a potential bidder, the EPGE also ruled out allowing bids to be prepared outside the country and then scanned, printed and submitted in Myanmar.
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  Investors are still facing the challenge on the Myanmar Government over the Vacant, Fallow and Virgin (VFV) land law

  An existing policy requiring mineral exploration permit applicants to obtain land grants could deter investors and "kill off" foreign investments in mineral exploration in Myanmar. Yangon’s business community is unclear about why the government is applying the Vacant, Fallow and Virgin (VFV) land law to exploration. One possibility is that the agriculture ministry wants to raise funds from making companies apply for VFV permits. The agriculture ministry’s insistence that the VFV law applies to minerals exploration “threatens the very viability of the exploration sector and one that is already making the industry extremely unattractive to foreign investors,” the International Investors for Mineral Development Association said in a May 15 letter seen by The Myanmar Times.
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  Myanmar’s exports between 1 October and 5 June in the current financial year increase

  Myanmar’s exports between 1 October and 5 June in the 2019-2020 financial year shot up to US$12.1 billion from $11.6 billion registered in the corresponding period of the previous fiscal, according to data from the Ministry of Commerce, state media reported. The figure reflects an increase of $503 million compared with the year-ago period. Of the seven export groups, agriculture, fisheries, minerals and other goods showed an increase in exports. Meanwhile, exports of livestock, forest products and finished industrial goods declined.
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  Fishery exports from Myanmar surges by USD $ 100 million despite COVID – 19 pandemic

  Fishery exports from Myanmar have increased by $100 million as of June 5 since October 1, the beginning of the 2019-2020 fiscal year, compared to the same period last fiscal year, according to data from the Ministry of Commerce. In this fiscal year, the country has earned $670.13 million this fiscal-year contrast to $569.418 million in the last fiscal year. However, during the earliest days of the COVID-19 pandemic, fishery export to China almost stopped causing concerns that Myanmar’s fishery sector was at the brink of collapse. Fortunately, the stakeholders later managed to resume fishery exports to China and increase exports through sea routes as well.