Weekly Business News from Myanmar

PTTEP Myanmar Asset will move forward with its operations despite the global oil price crisis amid COVID – 19
PTTEP Myanmar Asset issued an announcement that it remains confident to move forward with its operations in Myanmar as planned despite the current global oil price crisis and the spread of coronavirus (COVID-19). This is attributed to the implemented Business Continuity Management (BCM) plan to ensure uninterrupted gas supply to our buyers – MOGE and PTT. The company is ready to be flexible with its investment plan to cope with the challenging circumstances in the future. “The pandemic COVID-19 and the global oil price collapse of over 60% since March would not make a significant impact on PTTEP’s sales volume this year. The average sales volume, 388,000 barrels of oil equivalent per day (BOED) previously targeted for this year is expected to decrease by less than 5% as sales volume of natural gas, which represents the majority of PTTEP’s products, has already been secured in accordance with the sales agreement,” Mr. Phongsthorn Thavisin, President and Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said.
Ministry of Commerce (MOC) issued over 67,000 Preferential Certificates Origin (Cos) through online platform so far
The Ministry of Commerce (MoC) has issued over 67,000 preferential Certificates of Origin (COs) so far for exporters and importers in Myanmar through electronic means, the ministry stated. The ministry helped traders save time and cost as it launched online service for the COs in May 2019. All the documents can be uploaded electronically and applicants can make an online payment. They can print out the certificate. The online applications can be submitted to the following MoC branches, MoC office on Strand Road and Yangon, Department of Trade in Yankin Township and Thilawa SEZ. The MoC has also released Standard Operating Procedures (SOPs) for private businesspersons seeking Certificate of Origin (CO), per the new trade environment in foreign countries. According to a news release from the MoC, businesspersons can apply for COs at the export-import office in Yangon and Nay Pyi Taw; the Thilawa Special Zone; and, at the 14 border trade checkpoints — Muse, Lweje, Chinshwehaw, Kampaiti, Tachilek, Myawady, Kawthoung, Myeik, Tamu, Reed, Htikhee, Kengtung, Maese, and Mawtaung.
Government will reduce trade restrictions and red tape to facilitate trading process during the COVID – 19 outbreak
The government will reduce trade restrictions and red tape to facilitate the import and export process during the COVID-19 outbreak. Starting April 20, the customs department will reduce customs duties for businesses operating with the Myanmar Automated Cargo Clearance System (MACCS). Paperwork will also be streamlined, with an electronic version of Form D for preferential tariff treatment in Asean to be issued to simplify procedures between all the Asean countries.
The annual inflation rate in Myanmar which based on the Consumer Price Index rises to 9.2 percent in February 2020
The annual rate of inflation in Myanmar, based on the Consumer Price Index, stood at 9.2 per cent in February 2020, according to a report released by the Central Statistical Organization under the Ministry of Planning and Finance. The figure has remained above 8 per cent since June 2019. The inflation rate stood at 7.28 per cent in March 2019 and gradually inclined. It reached a peak of 8.61 per cent in September and dipped in November. It touched the highest level at 8.81 per cent in December 2019 because of the high season. Afterwards, despite the drop in fuel oil price and gain in local currency, power tariff hike led to higher inflation rate up to 9.2 per cent in February 2020.
Myanmar factories will face legal actions if they are ignoring COVID – 19 instructions
Myanmar’s State Counselor Daw Aung San Suu Kyi says factories will face legal action if they defy COVID-19 instructions. “The government’s instructions are not issued for pleasure. We do not want factories to close. It creates a burden for the government and the workforce. We have only ordered factory closures when necessary,” said the State Counselor. On Sunday, the Ministry of Labor ordered all factories to close until April 30 and only reopen when COVID-19 preventive measures had been inspected. However, many factories are still operating, according to workers and labor rights organizations. On Wednesday, U Maung Maung, chairman of the Confederation of Trade Unions in Myanmar (CTUM), told the State Counselor via a video link that factories were ignoring the government’s order despite being told to report to the labor department.
Yangon Stock Exchange (YSX) has been increased more foreign trading was permitted for the first time in Myanmar last month
The number of foreigners buying shares on the Yangon Stock Exchange (YSX) has been increasing since foreign trading was permitted for the first time in Myanmar last month. Buoyed by foreign purchases, activity on the local bourse has picked up despite the COVID-19 outbreak, YSX data showed. Between March 22 and April 20, foreigners scooped up a total of 2,002 shares of First Myanmar Investment Public Co (FMI) and 4,460 shares of Myanmar Thilawa SEZ Holdings (MTSH). This comes after the Securities and Exchange Commission of Myanmar (SECM) in July 2019 issued a notice saying that foreign individuals would be permitted to invest in up to 35 percent of the shares of the companies listed on the YSX.
South Korean investments in Myanmar were put on hold because of the COVID-19 pandemic
South Korean investments in Myanmar were put on hold because of the COVID-19 pandemic
Visa Foundation announced a commitment $210 Million to Support Small and Micro Businesses and Immediate COVID-19 Emergency Relief
The Visa Foundation recently announced a commitment of two programmes totalling $210 million to support small and micro businesses, aligning with the Foundation’s long-term focus on women’s economic advancement and inclusive economic development, and to address an urgent need from local communities following the spread of COVID-19. The first programme of $10 million is designated for immediate emergency relief to support charitable organizations on the frontlines responding to the COVID-19 pandemic, such as public health and food relief, in each of the five geographic regions in which Visa operates: North America; Latin America and the Caribbean; Europe; Asia Pacific; and Central Europe, Middle East and Africa. “As COVID-19 continues to unfold, communities are feeling the effects and need our immediate support,” said Al Kelly, CEO and chairman of Visa. “As a global company that operates a very local business, we recognize this need. We’re also committed to the long-term recovery and will continue to explore ways we can accelerate economic activity in line with our mission to help individuals, businesses and economies thrive.”
Ministry of Commerce started accepting online application for export/import licenses for certain items
The Ministry of Commerce started accepting online application for export/import licenses for certain items and it was proved to be effective as the ministry was able to issue license in 20 minutes after the application. Thus, it will accept online application for the remaining items. Before, eligible items for online license applications were CMPs (garment), drugs and pharmaceutical equipment, foods, fertiliser, palm oil and oil products, milk and dairy products, electronics and power supplies, lubricants, motorbikes, bicycles, agricultural products, sugar, gas and so on.
World Bank has fast-tracked $50 million to Myanmar ICU upgrade in loan financing for Myanmar COVID-19 Emergency Response Project
Myanmar is among just 10 percent of the globe projected by the International Monetary Fund to post economic growth this year. The rest of the world is expected to slip into recession. The forecast comes despite the spread of COVID-19 in Myanmar, which has already resulted in the closing of its borders, worsening conflict in Rakhine State, a collapse in tourism and dimmer prospects of mass investment from Europe and America. Still, growth is forecast to slow considerably. In its April World Economic Outlook, the IMF slashed Myanmar’s 2020 growth forecast to 1.8pc from 6.4pc. This would be Myanmar’s slowest growth rate since the junta handed over power to U Thein Sein’s quasi-civilian government in 2011. The economy has already been hurt by the crisis, with the number of factories having shut down in Myanmar estimated to be around 40 and nearly 17,000 workers laid off or furloughed.