Weekly Business News from Myanmar

Government will provide over K 21 billion loan to 1,200 businesses that suffered from the impact of COVID – 19 pandemic
The government will provide a K21.122 billion loan to 1,200 businesses that suffered from the impact of the COVID-19 pandemic, according to U Thaung Tun, Union Minister of the Ministry of Investments and Foreign Economic Relations. He said that during the video conference of the COVID-19 Economic Relief Work Committee, chaired by him, held on October 14. “The government allocated K100 billion to provide the second trench of loans, out of which we have used K20.277 billion to provide loans to K1,041 businesses in the first batch. From this meeting, we will approve K21.122 billion loans for 1,200 businesses,” U Thaung Tun said.
More than 200 retailers joined hands with Myanmar Rice Federation to resell reserved rice with fairest price
More than 200 retailers across the country have worked together with Myanmar Rice Federation (MRF) to resell the reserved rice at a much fairer price to the people, MRF stated. “MRF aims to offer the rice at a fairer price to the people amid the COVID-19 crisis. Yangon rice depot is also opened three days per week”, said the president of MRF. MRF is supporting the government’s plan with non-profit. The federation sells the rice to the registered retailers at K22,800 per 108-pound bag of low-quality rice at the warehouses. The retailers in Yangon Region can also buy them at K23,200 per bag through the delivery system, and Pawsan rice variety is sold at K38,000-40,000 per bag, with a minimum order of 10 bags per batch, MRF stated.
Myanmar’s manufacturing sector attracted 188 foreign enterprises in the past 2019 – 2020 financial year
Majority of foreign enterprises eye the manufacturing sector for investments in the past financial year 2019-2020, pulling in US$1.128 billion from 188 projects, the Directorate of Investment and Company Administration’s statistics indicated. Of 245 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and 30 September of the last FY, 188 enterprises pumped FDI into the manufacturing sector. However, the quantum of investment in power is higher than in any other sectors. Power sector topped $1.67 billion from eight enterprises.
Government is drawing the Myanmar Economic Recovery and Reform Plan (MERRP) for post COVID period to revive the national economy
The government is drawing the Myanmar Economic Recovery and Reform Plan (MERRP) in connection with the Myanmar Sustainable Development Plan (MSDP) for use in the post-Covid period in order to revive national economy, said Union Minister for Investment and Foreign Economic Relations Thaung Tun. He revealed the information during the “Brimming with opportunities” Prospects in Myanmar for HK Investors Webinar organized by Myanmar Hong Kong Chamber of Commerce and Industry, the ministry’s Facebook page reported.
Myanmar’s external trade reached USD $ 153 billion in the past four years under the incumbent government
Myanmar’s external trade over the past four years under the incumbent government has touched a high of US$153 billion, comprising exports worth $70.4 billion and imports valued $82.8 billion, according to the statistics released by the Ministry of Commerce. Between the financial year 2016-2017 and FY2019-2020, the maritime trade has outperformed the border trade. Myanmar’s average trade was estimated at $111.7 billion, while its border trade with the neighbouring countries — China, Thailand, Bangladesh, India and Laos stood at $41.6 billion. Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government.
The salient points in the Yangon Stock Exchange’s (YSX) listing criteria
A listing on a stock exchange refers to the company’s shares being admitted on the board of stock exchange that are officially traded by a large number of investors including individuals and institutional investors in the market. Once a company’s shares are listed, the shares will be available for investment to general public. An applicant company is required to know listing criteria, a set of basic requirements or standards for a public company for listing on YSX. Listing criteria differ among stock exchanges in the world, however, it serves the same purpose which is to ensure qualify shares for the investors. An applicant company must follow 17 criteria issued by YSX to list on YSX. Whether or not a public company lists on YSX, understanding criteria enables not only to improve the company, but it also to be well prepared for listing on the stock market in the future. Preparing for listing on the stock exchange is not easy as expected. To be able to meet the criteria in a short time is not possible, but it has to take time for at least one year. It can be known by learning six listed companies.
Myanmar Investment Committee (MIC) endorsed 70 domestic firms in the last 2019 – 2020 financial year
The region and state investment committees gave the green light to 70 domestic enterprises in the last financial year 2019-2020, with an estimated capital of K191.89 billion, the Directorate of Investment and Company Administration’s data indicated. Between 1 October and 30 September of the FY2019-2020, Ayeyawady Region Investment Committee cleared 13 projects, ploughing in estimated capital of K41.26 billion. Similarly, Yangon Region Investment Committee gave a go-ahead to 12 enterprises with K26 billion, Taninthayi to 10 projects with K41.38 billion, Sagaing to 10 enterprises with K13.9 billion, Mon to five businesses with K13.6 billion, Kayah to four enterprises with K8.2 billion, Mandalay to three enterprises with K12.14 billion, Nay Pyi Taw Council to two businesses with K6.147 billion, Chin to two enterprises with K2.535 billion, Bago to two enterprises with K5.265 billion, Shan to two projects with K5.67 billion, Kayin to two enterprises with K9.6 billion, Magway Region to one with K2.5 billion, Rakhine to one with K2.499 billion, and Kachin to one with K965 million respectively.
Myanmar Fruit, Flower and Vegetable Producers and Exporters Association (MFVP) invited business partners for Yangon mobile market scheme
Myanmar Fruit, Flower and Vegetable Producers and Exporters Association (MFVP) has called for the affiliated associations and businesspersons to cooperate in the distribution and retail business of Yangon mobile market scheme. MFVP planned to help support fast and smooth commodity flow of the producers and market stability amid the COVID-19 crisis and initiated the mobile market scheme to sell the fruits and vegetables with mobile trucks in the townships of Yangon, supported by Myanmar Trade Promotion Organization under the Ministry of Commerce and Yangon City Development Committee (YCDC). Thus the MFVP invited the retail business partners who want to work together with them in line with the regulations.
Tak province ordered a temporary halt to all movement of goods across the border with Myanmar until 25 October 2020
The northwestern Thai province of Tak ordered a temporary halt to all movement of goods across the border with Myanmar from Monday until Oct. 25, in an attempt to stem the possible spread of COVID-19 from Myanmar, Xinhua reported. In the past week, three Myanmar cross-border truck drivers and three members of a family of Myanmar migrant workers tested positive for COVID-19 in Tak's Mae Sot district.
Yangon Region Investment topped USD $ 308.768 million from 137 foreign firms in the last 2019 – 2020 financial year
Yangon Region Investment Committee endorsed 137 enterprises in the past financial year 2019-2020, bringing in estimated capital of US$308.768 million, according to the Directorate of Investment and Company Administration (DICA). Between 1 October and 30 September of the FY2019-2020, Yangon Region stood at the first place with 137 foreign enterprises (with a capital of $308.768 million), followed by Bago Region with 18 foreign projects ($72.645 million) at the second place and Ayeyawady, with nine at the third place ($19.614 million). Additionally, foreign direct investments also flow into Taninthayi Region from two projects worth $1.397 million, Magway Region from two worth $0.991 million, Mon State from two worth $1.664 million, Mandalay Region from one business valued $4.6 million, Sagaing Region from one worth $3 million, Kachin State from one worth $1 million, Shan State from one worth $4.13 million and Nay Pyi Taw Council from one valued $5.862 million.