Weekly Business News from Myanmar

Insurers see surge in Myanmar market interest driven by COVID – 19 pandemic
While COVID-19 has increased awareness on the importance of health insurance and led to better sales of life and health policies, demand for other insurance products has taken a beating, industry leaders say. For KBZ MS General Insurance, monthly sales of individual health products have gone up five times compared to pre-pandemic figures. “This is partly driven by our extra 50 percent-free COVID-19 benefits campaign, but in general people are more receptive to the concept of protection when they’re faced with an immediate crisis,” said Anil Mancham, CEO of KBZ MS. The firm is a partnership between Yangon-based IKBZ Insurance and Japan’s Mitsui Sumitomo Insurance.
E – Commerce Virtual Conference will be held on 28 May to relieve economic situation in Myanmar due to the impact of COVID – 19
To relieve economic situation in Myanmar due to impact of COVID-19, to have better economic development and to introduce more new rice products, E-commerce Virtual Conference will be held on 28 May, according to the statement issued by the Ministry of Commerce. During the conference, COVID-19 Economic Relief Plan (CERP) and collaboration plan between public and government will be discussed, according to the statement.
Dai – ichi Life insurance providers in Myanmar taking long – term view of challenges to industry
Life insurance providers in Myanmar are upping their game, spurred by the gradual rise of COVID-19 cases in the country. “At the moment, people are more aware of their personal health and are asking if their health and life insurance policies cover COVID-19,” said U Thaung Han, secretary of the Myanmar Insurance Association. In response, a growing number of providers have started offering insurance policies against the virus to retain customers and draw new ones. “It is not a government order. The local and foreign insurers are just responding to the needs and demands of their customers,” he said. While a setback for Myanmar’s insurance providers in the short term, the coronavirus pandemic presents an opportunity to raise interest and expand market share in the long term.
Member of Parliament warned Australian – backed mining in Myanmar’s far North may spark protest
A Kachin lawmaker voiced concerns in the Upper House of Parliament about an Australian-backed company’s plan to conduct a feasibility study for a large-scale mining exploration project in an area of Myanmar’s northernmost township with snow-capped mountains and a largely untouched environment. The Australian-backed Fortuna Metals Co. Ltd submitted a proposal to the government in August 2018 to carry out a feasibility study for a project to extract gold, metals and other minerals on nearly 300,000 acres—an area almost twice the size of Singapore—in Khaunglanhpu Township in northern Kachin State’s Putao District, where Myanmar’s largest area of forest cover is located. Last November, the Kachin State government gave the company a green light to carry out the study. According to the Directorate of Investment and Company Administration (DICA), two directors of the company are Australian citizens and one is a Myanmar citizen.
Myanmar Livestock sector decline may pose longer term food security issues as the result of COVID – 19
The Myanmar livestock sector is among the sectors impacted as a result of COVID-19, according to results of a Myanmar Livestock Federation survey released May 18. The survey involved more than 300 livestock businesses across Myanmar. Based on the feedback, the three main challenges faced by the sector are declining livestock prices, a surplus of cattle and transportation limits. These challenges are interconnected. Prices have declined due to a lack of market demand as a result of COVID-19, causing a surplus of animals. Meanwhile, disruptions to transport have slowed trade, leading to declines in price. 97 percent of survey respondents said their businesses are either facing profit declines or have sunk into losses.
Myanmar Fruit, Flower and Vegetable Producers and Exports Association launched the new e-commerce platform with mobile market trucks in Yangon outskirts
Myanmar Fruit, Flower and Vegetable Producers and Exporters Association (MFVP) has launched e-commerce platform and also, sell the fruits and vegetables with mobile market trucks in the suburban townships of Yangon, MFVP Secretary U Kyaw Thu told the Global New Light of Myanmar yesterday. The fruits and vegetable growers in Naungtayar, Pindaya and Aungban towns in southern Shan State are facing financial hardships amid coronavirus outbreak. Those local products will be sold through this platform. “Yangon people are the main consumers. During the coronavirus pandemic, people are staying at home and so, we are arranging the mobile market trucks to sell them in the townships. This plan will bring fair trade at a cheaper rate for the vendors as well as the consumers as it is direct trade from the growers,” he said. The cabbage growers in Naungtayar town, southern Shan State have been suffering losses as the market ruined. Earlier, the cabbages were sent to Thirimingala market in Yangon. Now, the coronavirus shocks shut down the hotels and restaurants and ruined the market.
Expressway which connecting Yangon – Mandalay Expressway and Thilawa Special Economic Zone (SEZ) will be built
A 57.8-kilometer expressway connecting Yangon-Mandalay Expressway and Thilawa Special Economic Zone will be built and the project includes a 1.4-kilometer bridge across Bago River and approach roads, according to the Ministry of Construction. Yangon City Development Committee in cooperation with Japan International Cooperation Agency (JICA) is implementing a project for a comprehensive urban transport plan of the greater Yangon (YURTA) to reduce traffic congestion and road accidents caused by increasing traffic and commodity flow.
Logistics services provider, Ever Flow River Group Public Co (EFR) will be listed on the Yangon Stock Exchange (YSX) on 28 May 2020
Logistics services provider Ever Flow River Group Public Co (EFR) will list on the Yangon Stock Exchange (YSX) on May 28, according to an announcement filed with the local bourse. The company had been scheduled to list in March but this was delayed due to COVID-19. "Even though the virus is still spreading in the country, we have decided to continue with the listing process on YSX. We believe the logistics sector will play an important role in the country during the COVID-19 period and but especially during the post-COVID-19 period," the importance of the logistics sector," U Aung Min Han, CEO of EFR , told The Myanmar Times. "COVID-19 has turned into a global pandemic that is causing adverse impacts on the economies of the world countries in one way or another. Moreover, the virus also cut off the multiple global supply chain for a short period. EFR also had to halt some of its international business contacts for a short time. On the other hand, there is growth in the domestic supply chain," the company said in its disclosure document.
Myanmar estimated GDP for the current fiscal year of 2019 – 2020 will be slightly reduced
The estimated GDP for the current fiscal year of 2019-20 will be slightly reduced, said U Maung Maung Win, Deputy Minister for Planning, Finance and Industry. "Based on initial estimates, Myanmar's GDP, which is the value of all finished goods and services produced for the year, has been revised to K118.9 trillion from over K119 trillion before, given the decline in the world economy and oil prices as a result of COVID-19," he told the Hluttaw while submitting the Supplementary Budget bill on May 18.
World Bank pledges to support economic reform in Myanmar under a new country partnership framework from 2020 to 2023
The World Bank will support Myanmar under a new country partnership framework from 2020 to 2023, it said on May 18. The framework will focus on three areas - building human capital and fostering peaceful communities, stimulating responsible private sector-led growth and inclusive economic opportunities, and enhancing the resilience of Myanmar to cope with natural disasters while ensuring that natural resources and the environment are managed sustainably. Since 2011, Myanmar has achieved significant economic growth and improvements in social welfare. However, many parts of the population have yet to benefit from the gains made during this period, the World Bank said.