Weekly Business News from Myanmar

Myanmar Agriculture Development Bank (MADB) reduced interest rates on agro loans amid COVID – 19
Myanmar Agriculture Development Bank (MADB) has reduced its interest rates on agricultural loans, a bank announcement stated. MADB announced the reduction of interest rates included the agricultural loans, the JICA loans and the loans provided for the agricultural sector by Myanma Economic Bank (MEB) to the local farmers so that the agricultural loans can be obtained at lower interest rates. The interest rate for the agricultural loans provided by MADB is reduced to 7 from 8 per cent. Similarly, the interest rate for JICA’s agricultural and rural development loans are lowered to 6.5 from 8 per cent. And the project interest rate for MEB is decreased to 8 from 9 per cent. MADB has also changed the interest rate for the saving accounts of the farmers. The rate will be 6.5 from 8 per cent.
Myanmar Government and local businesses are lend hand to those in need in Myanmar during virus outbreak
The Myanmar government and local businesses are providing assistance and donating to those in need during the COVID-19 outbreak. While it has so far infected 22 people in the country, the economic consequences of the virus has been swift and unforgiving, with more than 10,000 minimum wage workers rendered jobless and a rising number of businesses forced to shut down. To provide some relief, the National-level Central Committee on Prevention, Control, and Treatment of COVID-19 on April 6 announced that it would distribute five essential food items to working class households which do not have daily income during the long Thingyan period. One family would get eight pyi of rice, 50 kyattha of cooking oil, 50 kyattha of salt, one viss of pulses and one viss of onions.
The builders grasp chance to apply for construction permits in Yangon City through online system
Urban area of Yangon is wider and wider whereas newly-constructed buildings are mushrooming day by day. In constructing modern high-rise buildings, it was necessary to take a long time for seeking construction permits and for submitting applications at different levels. Currently, applicants are allowed for seeking construction permits through online system in Yangon City. Test running “Yangon City Development Committee implements online service system while studying things how to carry out reform process for issuing permits of building construction in Yangon. International Finance Corporation-IFC which is member of the World Bank assists Yangon City Development Committee in realizing the online system for issuance of the construction permit. The Myanmar Architect Council and the Myanmar Engineering Council sought assistance from IFC which conducted training to those who would participate in the service project. The online service was launched in August 2019,” said Daw Hlaing Maw Oo, Secretary of YCDC.
The bilateral trade between Myanmar and China resumed USD $ 10 million border trade per day
The bilateral border trade between Myanmar and China has declined by over US$139 million as of 27 March because of the spreading of Coronavirus (Covid-19), according to the Ministry of Commerce (MoC). The bilateral border trade has been dropping by $1 million per day since the trade between Myanmar and China has resumed at the end of February. Now, Myanmar can trade over $10 million worth commodity per day, announced the Ministry of Commerce. Although the trade through Muse 105th Mile trade zone is not suspended after China has restricted the travelling to control Covid-19, the bilateral trade has decreased by over $1 million. Starting from 24 February 2020, the trade operation has resumed and the trade value has reached the normal situation of above $10 million per day, stated the announcement by the Ministry of Commerce.
Test runs for one of Myanmar’s emergency power plant will take place this month
One of Myanmar’s five emergency power plants will carry out test runs this month after missing an initial deadline to go live on March 31. The Ministry of Electricity and Energy said in an April 13 statement that the 150 megawatt gas plant in Ahlone township will conduct test runs in this coming week before full operations can begin. It is led by state-run China Energy Engineering Group (CEEC), also known as Energy China. Some blackouts, expected to last for a few hours, will take place during the test runs on April 15 and 20. The townships affected are Kamayut, Yankin, Tamwe, Bahan, South Okkalapa, Thingangyun, Mingalar Taung Nyunt, Pazundaung, Bohtataung, Pabedan, Kyauktada on April 15, and Dagon, Kyeemyindaing, Sanchaung, Bahan, Lanmadaw, Latha, Pabedan, Kyauktada, Pabedan, Botahtaung on April 20. Disruptions are expected to last for a couple of hours.
Government expanded list of relief measures for businesses, investors to help ease the pain for businesses affected by the COVID – 19 pandemic
The government has been rolling out a slew of relief measures to help ease the pain for businesses affected by the COVID-19 pandemic and keep investors interested in Myanmar. In an April 11 directive, the Ministry of Commerce exempted traders from import license fees for all medicines and medicinal raw materials. There were two precedents in 1993 and 1998 with similar fee exemptions for 36 and 31 medicines and related raw materials, respectively. Overriding those previous notifications, the latest import license fee exemption will take immediate effect and will cover all kinds of medicines and related raw materials in order to provide some relief to businesses in the sector. The authorities have also approved of other measures in recent weeks: Investors who wish to apply for permission to invest in the country will only have to pay half the normal application fees, the Myanmar Investment Commission (MIC) announced on April 9. This includes both Myanmar and foreign investors. The new fee structure will take effect from April 20 onwards and remain effective until the authorities review and revise the fees.
Thailand's Siam Commercial Bank (SCB) is planning to issue loan up to USD $ 214 million over the next five years in Myanmar
Thailand’s Siam Commercial Bank Pcl (SCB) is looking to issue loans up to 7 billion baht ($214 million) over the next five years in Myanmar after receiving a preliminary approval to set up a subsidiary there, it said on Friday. The license allows Thailand’s third-largest lender by assets to open up to 10 branches in business areas. It will focus on Thai clients with investments in Myanmar in the first phase, Chief Executive Arthid Nanthawithaya said.
Myanmar Government provided COVID – 19 loans for 88 businesses at an interest rate of 1 percent but discrepancies hamper number of approvals
The government has approved COVID-19 loans for 88 businesses at an interest rate of 1 percent, according to the Union of Myanmar Chamber of Commerce and Industry (UMFCCI). But the UMFCCI received more than 1600 applications for the loan on the April 9 deadline. According to U Naung Naung Han, chair of the Myanmar Tourism Entrepreneurs Association, there are discrepancies between most of the applicants’ financial reports and the loan amounts they are asking for, which has made it difficult for the authorities to approve loans for the majority of applicants. He said most tour companies are applying for loans under K50 million, while some hotels require loans of K100 million or more, depending on the number of employees. The government last month established a COVID-19 Fund worth K100 billion (US$70 million or 0.1 percent of GDP) at the Myanmar Economic Bank. The funds will be disbursed as soft loans to affected businesses in the garment and tourism sectors as well as small and medium enterprises at a 1pc per annum interest rate for a one-year period, with terms to be reassessed as needed.
The submission of investment proposals to Myanmar Investment Commission (MIC) unaffected by the outbreak of COVID – 19
Submission of investment proposals to MIC is not affected by the outbreak of Covid19, said DICA Director-General U Thant Sin Lwin on 10 April. “Myanmar Investment Commission (MIC) has granted priority to the investment proposals which can create job opportunities for local residents because MIC believes that the job opportunities and investment have a direct impact upon the country’s economy. There is no decrease in the submission of the investment proposals to MIC because of the pandemic and the recent business crisis,” he said. Among the investment proposals, the industry and labour based businesses are given priority over other sectors. The permitted businesses intend to implement their ventures amidst the Covid19 outbreak. So, MIC has granted the permit to these businesses as soon as possible, he added. “According to the MIC press release, the new investment proposals are being received despite this situation, and we are also issuing the permits for the implementation of the investment proposals.
Myanmar Investment Commission (MIC) will accelerate the approval for investments in labour – intensive, healthcare and infrastructure projects in Myanmar
The Myanmar Investment Commission (MIC) will accelerate approvals for investments in labour-intensive and infrastructure projects, MIC secretary U Thant Sin Lwin said last week. This is to ensure as many workers find jobs as possible to offset the impact of lay-offs in other sectors such as manufacturing and tourism. The MIC will also accelerate approvals for healthcare and medical equipment businesses, including those involved in manufacturing supplies such as face masks. It will also prioritise pharmaceutical enterprises, healthcare service providers, U Thant Sin Lwin said. “We are continually watching the possible impact of COVID-19 on Foreign Direct Investments (FDI) and will prioritise investors who are able to provide more jobs and contribute to preventing and fighting COVID-19,” he said.