ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  The actual inflow of foreign direct investment (FDI) are lower despite government increased in approving foreign investments during the period between October and March of current financial year

  Despite a huge increase in approved foreign investments from US$1.9 billion to $3.3 billion during the period between October 2019 and March 2020, the actual inflow of foreign direct investments (FDI) are lower. At $500 million, the inflow of investment in the first quarter of the year fell short of last year’s $800 million, said U Aung Naing Oo, permanent secretary of the Ministry of Investment and Foreign Economic Relations (MIFER). “My concern is that although more investment was approved, the actual inflow of FDI will be a challenge for us,” he said during an AustCham Myanmar webinar last Wednesday.
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  Myanmar’s trade deficit increased more than USD $ 1.4 billion over the half of months of current financial year

  Myanmar’s trade gap significantly increased over the half of the current financial year to more than US$1.4 billion from $422.29 million registered in the corresponding period of the 2018-2019FY, according to the data provided by the Ministry of Commerce. Between 1 October and 17 April in the current fiscal, Myanmar’s external trade has increased to over $2155 billion from $18.74 billion recorded in the year-ago period. While exports were estimated at $9.86 billion, imports were valued at $11.29 billion. Compared to the previous fiscal, exports showed an increase of $703.7 million, while imports climbed up by $1.7 billion. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, intermediate goods, CMP raw materials, and consumer goods.
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  Ministry of Labour, Immigration and Population announced list of essential businesses in Myanmar

  The Ministry of Labour, Immigration and Population on May 3 announced a list of 21 businesses which need to continue operations during the COVID-19 outbreak as they provide either essential, public or necessary services.
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  Economist urged Government’s COVID – 19 Economic Relief Plan (CERP) should focus on agriculture, livestock sectors which will affect longer than food security

  Economists said the government's COVID-19 Economic Relief Plan (CERP) should focus more on essential sectors such as agriculture and livestock, which affects longer term food security. The CERP was announced on April 27 to mitigate the negative impact of COVID-19 on the economy. “Myanmar is an agricultural country so we should support these sectors to be prepared for a recovery in foreign demand,” said garment business owner U Tun Tun. As the agriculture and livestock breeding businesses are ready to operate and also have a secure workforce, these sectors should be prioritised when allocating funds under the CERP, others suggested.
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  Due to the impact of coronavirus pandemic on the market in Myanmar, China has dealt a cruel blow to tea growers from the Ta’ang ethnic group in Shan State

  The closure of the border with China and many teashops in Myanmar’s biggest cities has sent prices crashing for green tea grown in northern Shan State. The two-month tea harvest is about to end in the picturesque hills of northern Shan State, but the impact of the coronavirus pandemic on the market in Myanmar and China has dealt a cruel blow to tea growers from the Ta’ang ethnic group. The growers, members of the Ta’ang ethnic group – often called Palaung in Burmese – are offering to sell green tea for between K6,000 and K7,000 a viss (1.63 kilograms), but buyers are scarce, said Mai Yan Naing, who has a tea plantation in Kyaukme Township. Demand has slumped because of uncertainty over the pandemic, Yan Naing told Frontier.
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  Only 20 companies out of 200 companies qualified for getting access to Myanmar Government’s emergency COVID funds

  Of the 200 companies eligible to receive a government COVID-19 soft loan, just 20 qualify for funding of more than K100 million. These included firms in manufacturing, trading and industry. Out of the 70 tourism and hotel-related companies that qualified for financing, just one, Inle Princess, was eligible for a loan of K100 million and above. The remaining businesses were able to access smaller loans. Critics pointed out the companies that qualified for the larger loans have connections with the Ministry of Hotel and Tourism. “We don’t know how they are processing these loans. Some of the names of eligible hotels and tourism companies did not qualify. As this is a government loan, more transparency is needed and we would like to see the funds end up with those who truly need it,” said Daw Sabei Aung, managing director of Nature Dream Tourism
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  Applications for Exporter/Importer Registration Certificates will extend online until the end of July during COVID – 19

  Applications to extend Exporter/Importer Registration Certificates will now be carried out online until the end of July in view of COVID-19, according to a statement issued by the Ministry of Commerce on April 27. This will help traders bypass the need to physically go to the trade department "The Ministry of Commerce has eased many export/import restrictions for businesses during the Covid-19 pandemic to make things more convenient and to avoid mass gatherings at government offices," said U Khin Maung Lwin, assistant secretary at the ministry. Export/ import permits have been issued online since April 1 and HS code lines for 73 export items and 742 import items have also gone online.
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  Myanmar Government will provide social security benefits for insured workers from factories and workshops which are temporarily suspended for inspections

  The Ministry of Labour, Immigration and Population will provide social security benefits for insured workers from factories and workshops which are temporarily suspended for inspections. “We’ll pay 40 percent of the social security fees to them as benefits,” the ministry announced in statement on April 28. As such, owners of the suspended factories and workshops should apply for social security benefits for their registered insured workers at their township social security offices, the statement said. In Myanmar, there are about 1.3 million insured workers who regularly pay social security fees. On April 20, the government ordered factories not to reopen after the long Thingyan holiday break before being inspected by the health ministry to ensure compliance with COVID-19 safety measures.
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  Ministry of Commerce and Myanmar Rice Federation (MRF) set rice export quota of 150,000 tonnes in May 2020

  The Ministry of Commerce and Myanmar Rice Federation (MRF) have planned to export 100,000 tonnes of rice through sea trade and 50,000 tonnes through border trade. They are negotiating with ASEAN and neighbouring countries to sell the rice through government (G to G) plan. The export quota of 150,000 tonnes is set based on the suggestions made by private and public sectors and the actions of other foreign countries. The quota is imposed on exports of rice, broken rice and sticky rice. However, there’s no restriction on parboiled rice export. Regarding rice export quota in May 2020, about 112 companies will ship them through maritime trade, while 200 companies will conduct the trade via borders. The export volume for each company is proportioned on 60 per cent of the average monthly export volume in the past 30 months. Those companies which have better performance in contract farming, supply chain and value chain, and for the millers and warehouse investors; and those which have the partnership with foreign firms will surely get more shares, as per the federation’s statement. The exporters can contact the MRF via email admin@mrf.com.mm for further enquires.
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  Government seeks new investments to manufacture COVID – 19 necessary medical equipment at inoperative factories

  New investments have been invited for the production of medicines and medical equipment necessary Covid-19 at inoperative State-owned factories, said Union Minister for Investment and Foreign Economic Relations Thaung Tun. As Myanmar purchases medicines and medical equipment from international market, plans have also been made to buy personal protective equipment (PPE)and face masks from local manufacturers, the minister commented his news article “The Measure of a Nation: Myanmar’s “Whole- of-Nation Approach” to Combating Covid-19” published in State-owned newspapers. For the prevention, control and treatment of Covid-19, measures are being taken to build more hospitals and clinics and provide more diagnostic equipment and ventilators.