Weekly Business News from Myanmar

Yangon’s automotive market plunged since mid-March in the current fiscal year
Following coronavirus spread in March in Myanmar, the automotive industry was crashed tremendously, leading to a sharp drop in automobile sales, said car dealers. The auto sales drastically dropped in April-end after the government has imposed a restriction period for events. In the second week of May, cars valued below K20 million were slightly demanded. However, the auto market is still cool. The cars are sold K1 to 3 million lower than the market price depending on types of cars, according to the Yangon car market. The Road and Transport Administration Department (RTAD) has started issuing slips (import permits) to owners of modified cars, with changed body coaches. Normally, the slipping price drops if more modified vehicles are de-registered at the RTAD.
Myanmar’s small and medium-sized enterprises (SMEs) urged State Counsellor to relax COVID – 19 loan policies in order to help businesses thrive
Myanmar’s small and medium-sized enterprises (SMEs) affected by the pandemic need the government to relax its COVID-19 loan policies in order to help businesses thrive, according to industry representatives. Speaking with State Counselor Daw Aung San Suu Kyi on Tuesday, Daw Win Win Tint, managing director of retail giant City Mart Holdings, said small businesses are facing difficulties around lending rules and regulations for the government’s loan program. Much of the government’s COVID-19 relief requires that businesses repay loans in just one year. “Those rules and regulations are out of reach for retail businesses. I would like to request [the government] consider it,” Daw Win Win Tint said.
Israelis firm are striving to expand more in agriculture technology and healthcare sector
Ronen Gilor, Ambassador of Israel to Myanmar, wants to foster stronger ties between the two countries to facilitate the transfer of relevant technology and knowhow from Israel to Myanmar. Since taking up his role in Myanmar almost 20 months ago, Mr Gilor has been working on raising Israeli participation in targeted sectors of the Myanmar economy. He believes the current levels of trade between the two countries are insufficient in optimising the benefits Israel can bring to Myanmar. “Myanmar already knows about Israeli technology, especially in agriculture and healthcare. The challenge is bringing that knowledge here and implementing it,” Mr Gilor told the Myanmar Times.
The Trade Department granted 7,433 import/export licences through online platform over the past two months
The Trade Department with the Ministry of Commerce has issued US$12.777 billion worth 7,433 import/export licences through the online platform over the past two months, to ensure smooth trade amid the coronavirus outbreak. The ministry has launched the online licencing system for export and import businesses starting from 1 April, with a view to reduce the person-to-person contact and mitigate the spread of viral disease. This being so, under the new service, the process of licence applications, fee payment and receiving licences can be done online. The trade department offers an online system for over 700 types of export/import 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. Licence applications can be processed on www.myanmartradenet.com.mm. The companies need to sign up membership, and application fee can be paid with the MCB eCommerce Pay of the Myanmar Citizens Bank. Additionally, the MPU eCommerce pay started on 8 May 2020. The Trade Department of the Ministry of Commerce has been granting reliefs to facilitate trade amid the pandemic period.
Chubb Life Myanmar launched its three insurance solutions to protect customers against rising hospital costs
Chubb Life Myanmar has announced the launch of three insurance solutions namely Chubb Health Shield, Chubb Accident Shield and Chubb Critical Illness Shield. With affordable premium payments, the products are designed to provide a peace of mind and reduce people’s financial burden in the event of illness, accident or hospitalization. Unexpected life events like accidents, surgery, critical illness and death can place tremendous stress on a dependent’s financial and emotional health. With the continued rise in healthcare and medical costs, the need for financial protection is critical to protect family and loved ones in case of a crisis. To provide this, Chubb Life has launched three insurance solutions with various benefits as follows.
Myanmar expected to resume its domestic tourism in the Q3 on the ongoing year
An official working with the Hotels and Tourism Ministry in Myanmar said on Saturday that the country is predicting to resume its domestic tourism in Q3 of the ongoing year in the first step of Myanmar's tourism recovery, MENAFN reported. The ministry has started its coronavirus Tourism Relief Plan recently, according to the plan, the domestic tourism is going to continue soon in order to support up to 20-25 percent of the recovery of the tourism industry in Myanmar.
The export earnings from fisheries sectors increased $ 101.88 million as of 12 June in the current 2019 – 2020 fiscal year when compared to the same period of previous year
Export earnings from the fisheries sector during the period between 1 October and 12 June in the 2019-2020 financial year reached 683 million USD, an increase of 101.88 million USD compared to the same period of previous year, according to the statistics released by the Ministry of Commerce. Myanmar exports fisheries products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union. However, Myanmar’s fishery export volume is much lower compared to neighboring countries. The Myanmar Fisheries Federation (MFF) is making concerted efforts to increase fishery export earnings by developing fish farming lakes which meet international standards and adopting advanced fishing techniques.
Central Bank of Myanmar (CBM) has permitted local banks to restructure and reschedule existing loan repayments to help clients
The Central Bank of Myanmar (CBM) has permitted local banks to restructure and reschedule existing loan repayments to help their clients, CBM Deputy Governor U Soe Min, told The Myanmar Times. While the economic impact of the COVID-19 pandemic has yet to be quantified, it is expected that businesses will bear the brunt of a decline in demand for products and services. The CBM anticipates that the impact on small and medium-sized enterprises (SMEs) will be the most severe. As such, allowing businesses with healthy repayment track records to defer repaying their outstanding loans should provide them with some reprieve and help many maintain business operations, U Soe Min said.
In partnering Mastercard, Yoma Bank will expand its digital offerings and accelerate the advancement of Myanmar digital economy
Yoma Bank and Mastercard, on June 18, signed an MoU that will enable the bank to substantially expand its digital offerings and accelerate the advancement of Myanmar’s digital economy. The E-commerce industry, still at the nascent stage, is booming amid the pandemic as users turned to online shops and delivery services while staying at home and following the social distancing orders. However, the payment method is still not there despite dozens of private banks in the country. COVID-19 has impacted everyone and all economies adversely. Considering this, digitization of payments will be essential to building a strong foundation for a lasting recovery that reaches all citizens through greater financial inclusion.
The construction of Korea – Myanmar Industrial Complex (KMIC) is expected to commence before the end of this year despite COVID – 19 pandemic
Construction of the Korea-Myanmar Industrial Complex (KMIC) in Yangon is expected to commence before the end of the year despite the COVID-19 pandemic, Kim Gun-Woo, general manager of Korea Land and Housing Corporation representative office in Myanmar, told The Myanmar Times. "According to our plan, we will be done with the detailed design in September, after which a tender to develop the project will be called in October. The winning bidder will be announced in November. We expect to begin construction in December," Mr Kim said. The KMIC is being built as a 60-40 joint venture by government-owned Korea Land and Housing Corp and Myanmar’s Ministry of Construction. The Koreans will oversee the construction of the US$110 million industrial complex, which will take place across 555 acres of land north of Yangon, near Nyaung Na Pin Village in Hlegu.