ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Government expanded list of relief measures for businesses, investors to help ease the pain for businesses affected by the COVID – 19 pandemic

  The government has been rolling out a slew of relief measures to help ease the pain for businesses affected by the COVID-19 pandemic and keep investors interested in Myanmar. In an April 11 directive, the Ministry of Commerce exempted traders from import license fees for all medicines and medicinal raw materials. There were two precedents in 1993 and 1998 with similar fee exemptions for 36 and 31 medicines and related raw materials, respectively. Overriding those previous notifications, the latest import license fee exemption will take immediate effect and will cover all kinds of medicines and related raw materials in order to provide some relief to businesses in the sector. The authorities have also approved of other measures in recent weeks: Investors who wish to apply for permission to invest in the country will only have to pay half the normal application fees, the Myanmar Investment Commission (MIC) announced on April 9. This includes both Myanmar and foreign investors. The new fee structure will take effect from April 20 onwards and remain effective until the authorities review and revise the fees.
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  Thailand's Siam Commercial Bank (SCB) is planning to issue loan up to USD $ 214 million over the next five years in Myanmar

  Thailand’s Siam Commercial Bank Pcl (SCB) is looking to issue loans up to 7 billion baht ($214 million) over the next five years in Myanmar after receiving a preliminary approval to set up a subsidiary there, it said on Friday. The license allows Thailand’s third-largest lender by assets to open up to 10 branches in business areas. It will focus on Thai clients with investments in Myanmar in the first phase, Chief Executive Arthid Nanthawithaya said.
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  Myanmar Government provided COVID – 19 loans for 88 businesses at an interest rate of 1 percent but discrepancies hamper number of approvals

  The government has approved COVID-19 loans for 88 businesses at an interest rate of 1 percent, according to the Union of Myanmar Chamber of Commerce and Industry (UMFCCI). But the UMFCCI received more than 1600 applications for the loan on the April 9 deadline. According to U Naung Naung Han, chair of the Myanmar Tourism Entrepreneurs Association, there are discrepancies between most of the applicants’ financial reports and the loan amounts they are asking for, which has made it difficult for the authorities to approve loans for the majority of applicants. He said most tour companies are applying for loans under K50 million, while some hotels require loans of K100 million or more, depending on the number of employees. The government last month established a COVID-19 Fund worth K100 billion (US$70 million or 0.1 percent of GDP) at the Myanmar Economic Bank. The funds will be disbursed as soft loans to affected businesses in the garment and tourism sectors as well as small and medium enterprises at a 1pc per annum interest rate for a one-year period, with terms to be reassessed as needed.
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  The submission of investment proposals to Myanmar Investment Commission (MIC) unaffected by the outbreak of COVID – 19

  Submission of investment proposals to MIC is not affected by the outbreak of Covid19, said DICA Director-General U Thant Sin Lwin on 10 April. “Myanmar Investment Commission (MIC) has granted priority to the investment proposals which can create job opportunities for local residents because MIC believes that the job opportunities and investment have a direct impact upon the country’s economy. There is no decrease in the submission of the investment proposals to MIC because of the pandemic and the recent business crisis,” he said. Among the investment proposals, the industry and labour based businesses are given priority over other sectors. The permitted businesses intend to implement their ventures amidst the Covid19 outbreak. So, MIC has granted the permit to these businesses as soon as possible, he added. “According to the MIC press release, the new investment proposals are being received despite this situation, and we are also issuing the permits for the implementation of the investment proposals.
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  Myanmar Investment Commission (MIC) will accelerate the approval for investments in labour – intensive, healthcare and infrastructure projects in Myanmar

  The Myanmar Investment Commission (MIC) will accelerate approvals for investments in labour-intensive and infrastructure projects, MIC secretary U Thant Sin Lwin said last week. This is to ensure as many workers find jobs as possible to offset the impact of lay-offs in other sectors such as manufacturing and tourism. The MIC will also accelerate approvals for healthcare and medical equipment businesses, including those involved in manufacturing supplies such as face masks. It will also prioritise pharmaceutical enterprises, healthcare service providers, U Thant Sin Lwin said. “We are continually watching the possible impact of COVID-19 on Foreign Direct Investments (FDI) and will prioritise investors who are able to provide more jobs and contribute to preventing and fighting COVID-19,” he said.
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  Microfinance and non – Bank lenders asked to allow delayed repayments for struggling borrowers

  Microfinance and other non-bank financial institutions have been instructed to provide repayment relief to their borrowers as most consist of low-income workers who could be hit by the economic fallout of COVID-19. The Ministry of Planning and Finance’s Microfinance Business Supervisory Committee said on April 6 that neither principal nor interest should be collected “with force”. Microfinance operators in Magwe, Sagaing and Mandalay, have already allowed repayments to be delayed since the end of March. Over 80 microfinance organisations operate in Yangon Region but only around 10 of them have voluntarily extended repayments in light of the global pandemic. Most of the lenders have weekly repayment arrangements with borrowers. So far, repayments have been deferred for one month on average.
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  The trade volume of Myanmar – China reached USD $ 10 million daily in April of current financial year

  Trade volume of Myanmar and China is reached US$10 million daily now as trade activities are resumed since at the end of February though Myanmar-China border trade volume reduced to over US$1 M daily before the end of February due to COVID-19 outbreak, according to an announcement from Ministry of Commerce. Although trade activities in Muse 105-mile border trade center are not stopped, trade volume was between US$10 and US$15 million daily before the travel restrictions in China. It is reduced between US$1 and US$2 million daily after the travel ban in China. However trade activities are resumed from February 24 and the trade volume is reached over US$10 million daily and trade is returned to nearly normal, according to the announcement.
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  Ministry of Commerce is working to grant for two month extension of vehicle import license

  Car dealers will be granted a two-month extension to their import licenses, a senior official of the Ministry of Commerce said. “We are working on a plan that allows the licenses to be extended for up to two months as most car dealers have stopped selling cars because of the COVID 19 crisis,” the official said. Import licenses are renewed every three months. The Ministry of Commerce typically allows one-month extensions for a maximum of two times.
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  The volume of Myanmar rice export worth USD $ 475.4 million between 1 October and 27 March in the 2019 – 2020 fiscal year

  The volume of rice and broken rice exported between 1 October and 27 March in the 2019-2020 fiscal year has been estimated at over 1.64 million metric tons, worth $475.449 million, according to an announcement from the Myanmar Rice Federation (MRF). In the current financial year, Myanmar has shipped rice to 59 foreign markets. China is the main buyer of Myanmar rice. The European Union countries account for over 15 per cent of rice exports, while about 37 per cent of rice grown in Myanmar goes to African countries. In the nearly half of the current fiscal, Myanmar has exported broken rice mostly to Belgium, followed by Senegal, Indonesia, the Netherlands, and Guinea. Broken rice has been placed in 52 foreign markets. Earlier, border trade was relatively high compared to sea trade in terms of rice exports. Since the previous financial year, border trade has dropped since trade in agricultural products has been halted on account of China clamping down on illegal trade, and currently, it accounts for just 14.2 per cent of the total rice exports, while maritime trade constitutes 85.8 per cent.
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  European Union (EU) provides 5 million Euros emergency cash fund to support thousands of Myanmar garment workers

  The European Union has announced the creation of a 5 million Euros emergency cash fund under the name “Myan Ku” to support thousands of Myanmar garment workers who have lost their jobs due to the COVID-19 pandemic. As of end March, over 25,000 workers from more than 40 factories have been laid off as Myanmar’s garment industry grapple with the impact of COVID-19. It is estimated that out of the 700,000 garment industry workers in the country, 350,000 are at great risk of either being suspended without pay or losing their jobs permanently. The Myan Ku Fund will provide direct cash transfers to affected garment workers employed in locally-owned, joint venture or foreign owned factories.