ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

• 

  Myanmar Rice Federation, Rice Wholesales Market (Muse) and Rice Merchants Association jointly urged the stakeholders to fully comply with China’s Regulations on the Management of Pesticides

  Myanmar Rice Federation, Rice Wholesales Market (Muse), and Rice Merchants Association jointly issued an announcement urging all the stakeholders to fully comply with China’s Regulations on the Management of Pesticides. The announcement highlighted the need to follow the bilateral contracts with China and procedures in exporting rice to China. As of now, Myanmar has sent information of 43 companies that will export rice to China, and eleven companies that have been approved by China in 2014 will be allowed to export rice to China. The above mentioned 43 companies have proposed 33 warehouses in Yangon Region, 26 warehouses in Ayeyarwaddy Region, 12 warehouses in Bago Region, three in Mandalay Region and Naypyidaw Region, and each in Sagaing Region and Magway Region, to be used in storing rice to export China. However, they will first need to be approved by China before storing rice to export.
• 

  The value of trade through Muse border down by USD $ 123 million as of 1 May in the current financial year when compared to the same period of previous financial year

  The value of Sino-Myanmar border trade through the Muse border plunged to US$2.9 billion between 1 October and 1 May in the current financial year 2019-2020, a decrease of $123 million compared to the corresponding period of the previous fiscal, according to the Ministry of Commerce. Exports through the Muse border were worth $1.89 billion, while imports were valued at $1.02 billion. During a-year ago period, Muse border witnessed trade worth $3.03 billion. Muse is an important border in Myanmar and handles the largest volume of trade. But at times, it has experienced a sharp drop in trade on account of China clamping down on illegal goods, resulting in a halt in the trade of agricultural products. Moreover, the coronavirus impacts slow the trade this year. Following the coronavirus consequences, trading at Muse border did not reach a monthly target in the past months. The trade values were registered about $370 million in January, $260 million in February, $300 million in March and over $290 million in April, while the monthly target was aimed at above $400 million.
• 

  Myanmar’s tourism operators expected to recover in two years at best due to COVID – 19 restrictions

  Myanmar’s tourism industry is expected to remain closed for the rest of the year due to COVID-19 restrictions, operators said. The recovery of the sector depends on the country’s ability to control and contain the spread of COVID-19. Meanwhile, far fewer foreign tourists are expected over the next two years. “It may be possible for local people to start making trips in October if the pandemic is controlled but rather than in groups, most people will only travel with their families. It would be hard to restart both inbound and outbound tours,” said U Thet Lwin Toe, an industry insider based in Yangon.
• 

  Ministry of Natural Resources and Environmental Conservation (MONREC) will approve the new medium and large –scale exploration and extraction mining permits

  Myanmar will approve the applications of up to 158 new medium and large-scale exploration and extraction mining permits, said U Thein Soe, Deputy Permanent Secretary of the Ministry of Natural Resources and Environmental Conservation (MONREC). The ministry has received more than 3000 applications to conduct activities at the new mining blocks since July 2018 and is planning to approve 158 for medium and large scale exploration and extraction now that the regional governments involved have completed checks and provided recommendations. Part of the requirements in granting the licences are that the companies must have environmental management plans in place. The permit approvals will be granted “soon,” said U Thein Soe. “The 158 permits will be granted to both domestic and foreign investors,” he added.
• 

  Myanmar exported over 600,000 tonnes of corns to China and Thailand through borders in the H1 of the current 2019 – 2020 financial year

  Myanmar has exported more than 600,000 tonnes of corns to China and Thailand through borders in the H1 of the current financial year 2019-2020, the Commerce Ministry’s data indicated. Over 500,000 tonnes of corns were sent to Thailand through Tachilek and Myawady borders, whereas Myanmar exported over 100,000 tonnes of corns via five Sino-Myanmar borders — Muse, Lwejel, Chinshwehaw, Kampaiti and Kengtung. Earlier, China is the major purchaser of Myanmar’s corn. Later, Myanmar traders turned to the Thailand border market. Additionally, Myanmar exports corn to India, Viet Nam, Malaysia, Singapore and the Philippines through maritime trade. Yet, the volume of corn exports to those markets is quite small. It has been one year since China suspended the importation of some agro products through the borders. Besides, corn is not listed in China’s legitimate goods for border trade. Therefore, the ministry is making an effort to seek China’s AQSIQ registration and to reach an agreement with China for legal trade.
• 

  Myanmar’s fisheries sector will face nears collapse due to the orders tumble since countries are locked down

  Myanmar’s fisheries sector will face its largest loss in history if demand does not pick up very soon, said U Myo Nyunt, secretary of the Myanmar Fisheries Products Processors & Exporters Association (MPEA). “Exports have collapsed. All international orders have been cancelled and we have not received any new orders from the European Union (EU) since they are all locked down,” he told The Myanmar Times. The EU and other western countries accounts for about 45 percent of Myanmar’s fisheries exports, while China and Thailand account for the remaining 55pc. The drop in demand will affect businesses throughout the fisheries supply chain. “At first, those operating cold storage facilities did not have any income and some had to shut down. Now, factories are not allowed to open and jobs are dwindling,” said U Myo Nyunt.
• 

  Myanmar Agricultural Development Bank will provide Ks 1,747 billion in agricultural loans for farmers in the current 2019 – 2020 fiscal year

  Myanmar Agricultural Development Bank will provide an agricultural loan of Ks1,747 billion for farmers in the current 2019-2020 fiscal year, an increase of Ks63 billion more compared to last year, according to the Ministry of Planning, Finance and Industry. “MADB loaned Ks,1684 billion in 2018-2019 FY. This year, it will loan Ks1,747 billion. Ks150,000 for one acre of paddy and Ks100,000 for one acre of other crops were loaned in 2016-2017 FY,” said Union Minister for Planning, Finance and Industry Soe Win. He revealed the information in an interview conducted by State-ran newspapers regarding the fourth year’s work performance of his ministry.
• 

  The trade payment for online export/import licencing system can made through MPU eCommerce pay starting from 1 April 2020

  The trade payment for online export/import licencing system (fully online) can be made through MPU eCommerce Pay, according to the Trade Department under the Ministry of Commerce. To ensure the convenience of the trading businesses during coronavirus pandemic emergency period, the Trade Department launched online services for export/ import licences system (fully online) starting from 1 April. The trade-related payment was made with the MCB eCommerce pay of the Myanmar Citizens Bank previously. Now, the MPU eCommerce Pay system has started to be used in all banks, connected with Myanmar Payment Union (MPU) on 8 May. So, the entrepreneurs can make their payments either via MCB ePayment system or MPU eCommerce Pay.
• 

  Myanmar Government options for limited stimulus to counter pandemic against COVID – 19 economic shocks

  A stimulus package cobbled together by the government to mitigate against COVID-19 economic shocks has been largely welcomed by businesses and investors although details were vague. There are also doubts over the plan’s capacity to support swathes of Myanmar’s formal and informal economy. The government’s 15-page document, released April 27, listed more than 50 measures to support the economy, including in banking, manufacturing and e-commerce. No clear budget was revealed, except for up to K500 billion (US$360 million) in loans for small- and medium-sized businesses in selected sectors - an expansion of an existing K100 billion ($72 million) fund - and a K100 billion ($72 million) fund for trade financing. Most measures contained little information about how much money will be allocated and how they will be implemented. While the relief plan goes some way to helping households, offering cash transfers, food rations and exemptions of electricity tariffs, economists and analysts say there should still be more focus on families struggling to put food on the table and keep small businesses afloat.
• 

  Myanmar Forest Products and Timer Merchants Association (MEPTMA) urged government a reduction of tax for export of lumbers and finished timer products

  Myanmar Forest Products and Timber Merchants Association (MFPTMA) requested a reduction of tax for export of lumbers and finished timber products. MFPTMA is paying 10 per cent for special goods tax and 2 per cent for the commercial tax to the government for export of lumbers and finished timber products, said MFPTMA Secretary and Managing Director U Aye Min Kyaw of Royal River Trading Company. “The tax is a bit high and the timber is contained in special goods tax. So, we have to pay 10 per cent for special goods tax. The remaining is fine. We also have to pay 2 per cent for commercial tax. The government suspended collecting of commercial tax because of coronavirus pandemic. So, we don’t need to pay 2 per cent recently. We wish to reduce a bit concerning 10 per cent for special goods tax,” he added. At present, the lumber and the finished timber products are purchased mainly by Europe, USA and Asia. Although it was a bit difficult to issue the documents for buying the lumber and finished products, it is easier now to receive the documents because Myanma Timber Enterprise (MTE) issues these documents as the third party, according to MFPTMA.