ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  The drafting on Credit Guarantee Corporation Law is in the process in order to support the provision of financing for micro, small and medium enterprises (MSMEs)

  The Financial Regulatory Department under the Ministry of Planning, Finance and Industry is in the process of drafting a Credit Guarantee Corporation Law, U Thant Sin, director of the department, told The Myanmar Times. The aim of the law is to support the provision of financing for micro, small, and medium enterprises (MSMEs) by enabling the establishment of a Credit Guarantee Corporation to guarantee credit to such companies. It will also allow participating financial institutions to spread the credit risks and provide loans without collateral. "Whether a collateral is provided or not, the state-backed Credit Guarantee Corporation can function as an intermediary organisation between the borrower and the lender. The Credit Guarantee Corporation on behalf of the borrower will give a guarantee to the lender for a loan. The borrower then pays a specified premium rate to the Credit Guarantee Corporation,’’ U Thant Sin said.
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  The Central Bank of Myanmar (CBM) has slashed interest rate by another 1.5 percent in the third time amid COVID – 19 pandemic to facilitate the economic recovery

  The Central Bank of Myanmar (CBM) has cut its key interest rates by a further 1.5 percentage points as the global COVID-19 pandemic continues to take a toll on the country’s economy. This is the third time the CBM has reduced rates since it announced a 0.5 percentage point cut on March 12, followed by a further 1 percentage point reduction on March 24. In total, the bank has cut the rates by 3 percentage points in less than two months. CBM Governor U Soe Min told The Irrawaddy that the reduction is aimed at encouraging low-interest loans to businesses in order to facilitate an economic recovery. According to the bank’s directive, the minimum bank deposit rate will be lowered from 6.5 percent to 5 percent, while the maximum lending rate will be lowered from 11.5 to 10 percent for collateralized loans and from 14.5 to 13 percent for non-collateralized loans.
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  Ministry of Planning and Finance (MOPF) officially released economic stimulus plan to fight COVID – 19

  The Ministry of Planning, Finance and Industry (MoPFI) on April 27 issued a comprehensive economic stimulus plan (CERP) consisting of seven goals, 10 strategies, 36 action plans and 76 actions that cover a range of emergency fiscal and monetary measures. The CERP “seeks to mitigate the inevitable economic impact posed by COVID-19 while establishing foundations that will facilitate Myanmar’s rapid economic recovery,” State Counsellor Daw Aung San Suu Kyi said in the report. She added that “the significance of COVID-19 induced tax revenue shortfalls cannot be downplayed, with anticipated revenue underperformance requiring reallocations of government spending to create space for COVID-19-related outlays, and policies.”
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  Myanmar Thilawa SEZ Holding Public Limited (MTSH) will give Ks 200 dividends per share for 2019 fiscal year

  Myanmar Thilawa SEZ Holdings Public Limited (MTSH) announced that it will give K200 dividends per share for 2019 fiscal year, in accordance with the decision of board of directors held on April 25. The company will give a total of K7.7 billion this year while it gave K9.7 billion last year. In 2016-2017 fiscal year, the company gave K260 per share marking the record high in company’s history.
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  Myanmar Government set to regulate multi-level marketing (MLM) companies through a new legislation

  The Myanmar government is set to regulate multi-level marketing (MLM) companies through a new legislation. U Myint Lwin, director general for Department of Consumer Affair, told this newspaper that the draft Direct Selling Law will put forward a regulatory framework for those firms. The department is responsible for the new legislation and the draft law has been made public. MLM businesses, also called network-marketing or direct-sales companies, often sell products by employing a network of distributors.
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  Myanmar considers applying for International Monetary Fund (IMF) financing to get through COVID – 19

  The Central Bank of Myanmar (CBM) and the Ministry of Planning, Finance, and Industry are considering applying for financing options provided by the International Monetary Fund (IMF), CBM governor U Kyaw Kyaw Maung said. The IMF on April 24 held a meeting via teleconference with the ASEAN countries. U Kyaw Kyaw Maung attended and discussed the negative impact COVID-19 is having on the Myanmar economy and how the country has responded so far. The Ministry of Information released a summary of a meeting between U Kyaw Kyaw Maung and Kristalina Georgieva, managing director at the IMF. According to that report, U Kyaw Kyaw Maung said domestic demand is sufficient to support the economy in the short term. The CBM has already taken measures to improve and encourage business by cutting interest rates by 1.5 percent. It also extended the deadline for local banks to comply with four financial directives by three years to August 2023.
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  The validity of importer and exporter registration will be extended up to 30 July 2020

  Following the coronavirus impacts, the validity of importer and exporter registration that will expire between 27 April and 30 July 2020 has been extended until 30 July, according to the notice of the Trade Department. After that extension, the relevant companies can extend their registration from the new deadline mentioned. The trade department offers an online system for over 700 items including CMP garment and necessary import items such as pharmaceuticals and related items, hospital equipment, foodstuffs, fertilizers, palm oil and oil products, milk and dairy products, electronic devices, fuel oil, lubricants, motorbikes and bicycles, agricultural products, lead, sugar, natural gas and other products. To carry out the fully online licencing system during the emergency period of coronavirus outbreak, H.S codes for over 700 items have been issued, indicated the data by the Trade Department.
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  Myanmar economic growth to rebound to 6.8 percent in 2021 if the virus is confined quickly

  Economic growth for Myanmar will slow significantly to 4.2 percent this year under the global health crisis but could rebound to 6.8pc in 2021 if the virus is confined quickly, according to a report by the Asian Development Bank (ADB). The ADB’s annual Asian Development Outlook report, released this month, puts Myanmar’s GDP growth forecast in 2020 as the second highest in Southeast Asia, after neighbouring Vietnam, which is estimated to grow at 4.8pc. Overall, ADB expects growth in Asia to slow sharply to 2.2pc in 2020 because of the COVID-19 pandemic and to recover to 6.2pc in the following year. Forecasts are based on the assumption that countries seriously affected, including the major economies of the US, Europe, and China, will have their outbreaks come under control in three to six months and that activity will gradually return to normal
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  Myanmar Competition Commission issued the restrictions on increasing sales

  Myanmar Competition Commission issued Order (2/2020) on 25 March, exercising its power conferred under Article 56-(b) of the Competition Law. The order is directed at businesses (excluding the service industry) and aims to foster free and fair competition, develop fair competition in the market unilaterally, receive equitable benefits and protect the public interest by issuing the following compulsory restrictions on increasing sales. (a) Advertising or the use of other methods to increase sales need are required to use language, symbols, images and data that assures correct responsibility or certain guarantee. (b) The use of language, symbols, images and data that may mislead, misinform, coerce, deceive or confuse the public is prohibited.
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  Prudential Myanmar provides free additional insurance cover against COVID – 19

  In light of the COVID-19 pandemic, Prudential Myanmar Life Insurance Limited (Prudential Myanmar), a wholly-owned business unit of Prudential Corporation Asia, announced on April 22 that it will provide its customers with free additional COVID-19 coverage to help protect them against the threat posed by the virus. Under the COVID-19 Free Cover initiative, Prudential Myanmar will issue lump sum benefits to any of its life insurance customers who is unfortunately diagnosed with COVID-19 or passes away as a result of the disease. All new and existing customers will automatically benefit from the following free additional insurance cover. The offer is applicable to all customers on boarded on or before 11 July. The insurance coverage is valid for 90 days.