Weekly Business News from Myanmar

Myanmar Agricultural Development Bank will provide Ks 1,747 billion in agricultural loans for farmers in the current 2019 – 2020 fiscal year
Myanmar Agricultural Development Bank will provide an agricultural loan of Ks1,747 billion for farmers in the current 2019-2020 fiscal year, an increase of Ks63 billion more compared to last year, according to the Ministry of Planning, Finance and Industry. “MADB loaned Ks,1684 billion in 2018-2019 FY. This year, it will loan Ks1,747 billion. Ks150,000 for one acre of paddy and Ks100,000 for one acre of other crops were loaned in 2016-2017 FY,” said Union Minister for Planning, Finance and Industry Soe Win. He revealed the information in an interview conducted by State-ran newspapers regarding the fourth year’s work performance of his ministry.
The trade payment for online export/import licencing system can made through MPU eCommerce pay starting from 1 April 2020
The trade payment for online export/import licencing system (fully online) can be made through MPU eCommerce Pay, according to the Trade Department under the Ministry of Commerce. To ensure the convenience of the trading businesses during coronavirus pandemic emergency period, the Trade Department launched online services for export/ import licences system (fully online) starting from 1 April. The trade-related payment was made with the MCB eCommerce pay of the Myanmar Citizens Bank previously. Now, the MPU eCommerce Pay system has started to be used in all banks, connected with Myanmar Payment Union (MPU) on 8 May. So, the entrepreneurs can make their payments either via MCB ePayment system or MPU eCommerce Pay.
Myanmar Government options for limited stimulus to counter pandemic against COVID – 19 economic shocks
A stimulus package cobbled together by the government to mitigate against COVID-19 economic shocks has been largely welcomed by businesses and investors although details were vague. There are also doubts over the plan’s capacity to support swathes of Myanmar’s formal and informal economy. The government’s 15-page document, released April 27, listed more than 50 measures to support the economy, including in banking, manufacturing and e-commerce. No clear budget was revealed, except for up to K500 billion (US$360 million) in loans for small- and medium-sized businesses in selected sectors - an expansion of an existing K100 billion ($72 million) fund - and a K100 billion ($72 million) fund for trade financing. Most measures contained little information about how much money will be allocated and how they will be implemented. While the relief plan goes some way to helping households, offering cash transfers, food rations and exemptions of electricity tariffs, economists and analysts say there should still be more focus on families struggling to put food on the table and keep small businesses afloat.
Myanmar Forest Products and Timer Merchants Association (MEPTMA) urged government a reduction of tax for export of lumbers and finished timer products
Myanmar Forest Products and Timber Merchants Association (MFPTMA) requested a reduction of tax for export of lumbers and finished timber products. MFPTMA is paying 10 per cent for special goods tax and 2 per cent for the commercial tax to the government for export of lumbers and finished timber products, said MFPTMA Secretary and Managing Director U Aye Min Kyaw of Royal River Trading Company. “The tax is a bit high and the timber is contained in special goods tax. So, we have to pay 10 per cent for special goods tax. The remaining is fine. We also have to pay 2 per cent for commercial tax. The government suspended collecting of commercial tax because of coronavirus pandemic. So, we don’t need to pay 2 per cent recently. We wish to reduce a bit concerning 10 per cent for special goods tax,” he added. At present, the lumber and the finished timber products are purchased mainly by Europe, USA and Asia. Although it was a bit difficult to issue the documents for buying the lumber and finished products, it is easier now to receive the documents because Myanma Timber Enterprise (MTE) issues these documents as the third party, according to MFPTMA.
Bank of China (Hong Kong) Limited (BOCHK) granted preliminary approval to set up Yangon branch in Myanmar
Bank of China (Hong Kong) Limited (“BOCHK”) is pleased to announce that it has been granted the preliminary approval by the Central Bank of Myanmar to set up Yangon Branch in the country. Adhering to its strategic goal of “Building a Top-class, Full-service and Internationalised Regional Bank”, BOCHK is actively pushing forward its regional development and expanding its business in the Southeast Asian region. Its branches and subsidiaries have been extended to Thailand, Malaysia, Vietnam, the Philippines, Indonesia, Cambodia, Laos and Brunei.
Myanmar manufacturing and construction sectors take beating downturn in April as a result of COVID – 19
The manufacturing sector recorded an accelerated downturn in April as a result of COVID-19, according to a survey from IHS Markit. The headline IHS Markit Myanmar Manufacturing PMI (Purchasing Managers Index) plummeted to 29.0 in April from 45.3 in March, signaling a severe decline in manufacturing business conditions in Myanmar. The PMI is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases. Any figure greater than 50.0 indicates overall improvement of the sector. "Myanmar's manufacturing sector nosedived in April as the global economy was rocked by the COVID-19 pandemic. The PMI dropped like a stone to 29.0,” according to Trevor Balchin, Economics Director at IHS Markit.
China pushed for the implementation of BRI projects as Myanmar Government rolls out the COVID – 19 Economic Relief Plan
China’s ambassador to Myanmar pushed on Wednesday to gear up for the implementation of Beijing’s key infrastructure projects in Myanmar despite the fact that both countries’ economies are facing a significant slowdown due to the effects of the COVID-19 pandemic. Chinese Ambassador to Myanmar Chen Hai and Myanmar’s Deputy Minister for Planning, Finance and Industry U Set Aung met for ‘in-depth discussions’ Wednesday on the implementation of outcomes from Chinese President Xi Jinping’s visit to Myanmar in January, according to the Chinese Embassy in Myanmar. The Chinese Embassy said that the two discussed how to move forward on the development of China’s ambitious projects in Myanmar based on the Myanmar government’s COVID-19 Economic Relief Plan (CERP). The projects discussed included New Yangon City, Kyaukphyu Deep-Sea Port and Industrial Zone and the China-Myanmar Border Economic Cooperation Zone.
Total 600 SME factories and workplaces in Mandalay Region resume their operations as of 5 May 2020
A total of 640 factories and workplaces in Mandalay Region has started to resume their operations as of 5 May, according to a working committee on publication of genuine information and monitoring false news of the coronavirus pandemic. The Ministry of Health and Sports has urged the factories and workplaces to follow the mandatory health guidelines to contain the spread of coronavirus infection. On 4 May, 573 factories were reopened and 22,203 workers returned to work. On 5 May, 67 more factories were reopened again, the committee stated.
Myanmar Government is negotiating for the funds to rescue embattled economy affected by COVID – 19
The government is negotiating for foreign aid and assistance from the World Bank, Asian Development Bank and International Monetary Fund (IMF) to help it implement a stimulus plan aimed at providing relief to businesses and industries affected by COVID-19, said U Maung Maung Win, deputy minister of Planning, Finance and Industry. The COVID-19 Economic Relief Plan (CERP), released on April 27, provides relief to the private sector through low-interest loans of up to K500 billion and credit guarantee schemes. The government had received confirmation from its developments partners to support hundreds of millions of dollars in development assistance needed to implement the CERP, according to U Set Aung, Deputy Minister for Ministry of Planning, Finance and Industry on a Facebook update last week.
Onepay launched its new mobile interbank service application in Myanmar in the midst of COVID – 19 with the goal of reducing social contact and mass gathering
Onepay this week launched a new mobile interbank platform from which users can transfer money among seven local banks -Asia Green Development Bank (AGD), Ayeyarwady Bank (AYA), CB Bank, KBZ Bank, Myanma Apex Bank (MAB), uab Bank and Yoma Bank - without physically going to any of the bank branches. The service was launched in the midst of COVID-19 with the goal of reducing social contact and mass gatherings as well as to increase convenience. U Aung Zeya Myo, deputy managing director of Onepay, said the intention is for users to gain a simple, secure and convenient way of transferring cash. “Working with our official banking partner AGD to support interbank services in our app is one of the attempts to reach that goal,” he said.