Weekly Business News from Myanmar

The value of Myanmar’s imports increase USD $ 1.5 million between 1 October and 6 March in the current fiscal year when compared to the same period of last fiscal year
The value of Myanmar’s imports between 1 October and 6 March in the current fiscal year stood at US$9.18 billion, an increase of $1.5 billion from $7.65 billion registered in the year-ago period, according to data released by the Ministry of Commerce, state media reported. The value of imports in the consumer, capital, intermediate goods, and CMP businesses groups rose significantly in the current fiscal. Over the past five months, capital goods, such as auto parts, vehicles, machines, steel, and airplane parts were brought into the country. Their import value was estimated at $3.5 billion. The figure was $1.09 billion higher compared to the same period in the previous FY.
Singapore listed Banyan Tree Holdings joint venture with Myanmar Treasure Hotel & Resort Group Co., Ltd to carry out a hotel management business in Myanmar
Myanmar Treasure Hotel & Resort Group Co Ltd and Singapore-listed Banyan Tree Holdings signed a joint venture agreement to carry out a hotel management business in Myanmar, according to a March 16 statement issued by Banyan Tree on the Singapore Exchange. The firms will incorporate a new company in Singapore under an S$100,000 initial capital, 50:50 shareholding structure, which, in turn, will set up a subsidiary in Myanmar. By leveraging on Banyan Tree’s expertise, the Myanmar subsidiary will run 17 of Myanmar Treasure’s hotel properties located across the country. Myanmar Treasure is the hospitality arm of the Htoo Group of Companies, a Myanmar conglomerate run by tycoon Tay Zar.
The European Union has announced an investment of €3.5 million (K5.48 billion) into a regional project that will assist in increasing biosecurity in Southeast Asia and help governments to offer better responses to highly communicable diseases or global bi
The European Union has announced an investment of €3.5 million (K5.48 billion) into a regional project that will assist in increasing biosecurity in Southeast Asia and help governments to offer better responses to highly communicable diseases or global biological events. The BIOSEC-Enhanced Biosecurity in Southeast Asia project will be headed by the European Union Chemical, Biological, Radiological and Nuclear (CBRN) Risk Mitigation Centres of Excellence. The agency will work with 10 Southeast Asian countries and 51 partner countries in seven other regions to address CBRN risks of criminal, accidental or natural nature like pandemics. On March 10, 40 experts from Cambodia, Malaysia, Myanmar, Singapore and Vietnam met in Nay Pyi Taw to start the three-year project that will work with governments in the region on biosecurity and biosecurity risk management.
Raising awareness for consumers about the requirements of products labeling was held in Yangon
According to the newly enacted Consumer Protection Law, the product labeling, described in the Section (18) will come into effect starting next week. For raising awareness about the requirements for product labeling, an educative discussion was held at UMFCCI in Yangon on Thursday. The event highlighted the eight facts for the product labeling requirements. It is learnt that the generic name of the goods, size, net weight, quantity, storage instruction, directions for use, side effect and allergy alert or warning must be displayed in Myanmar language. These descriptions can be expressed with one or more languages. The officials from the Ministry of Commerce stressed the needs to follow the regulations described in the law, and action will be taken if there any violations found out.
UMFCCI called government for national body to deal with virus impacts in Myanmar
The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) says it will ask the government to set up a national-level committee that includes representatives from the private sector to address the economic and social impact of the coronavirus outbreak sweeping the world. The World Health Organization officially declared the COVID-19 outbreak a pandemic on Wednesday, and since this is likely to impact Myanmar’s socio-economic landscape the government, businesses, labour unions, and any relevant bodies should cooperate to deal with the effects, the UMFCCI announced in a statement on Thursday. A pandemic is defined as a disease epidemic that has spread across a large region; for instance multiple continents, or worldwide. The trade body said it has been monitoring the situation since the outbreak emerged in early January and that the government and the central bank have been taking steps in line with rapidly changing situation.
The upgrade of Thandwe airport has commenced with work on extending the runway already takes place
The upgrade of an airport in Thandwe, Rakhihe State, a project listed under the Myanmar Project Bank, has commenced with work on extending the runway already taking place, said U Zaw Min, director of the Department of Civil Aviation (DCA). The US$5 million runway will enable it to handle commercial Airbus and Boeing planes after it is complete in 2021. Currently, it is only able to service ATR 72/500 and Emirate aircraft. Work will include a 2-inch asphalt concrete overlay applied to the existing runway. Thandwe is the local airport to Ngapali beach, a major tourist attraction in Rakhine State. Its completion is expected to draw more tourism revenue .
Myanmar business owners called CBM intervention on exchange rate as they are already having to deal with virus outbreak
With the COVID-19 virus outbreak set to impact Myanmar’s economy and recent rapidly fluctuating foreign exchange rates, the Union Federation of Chamber of Commerce and Industry (UMFCCI) has requested the Central Bank of Myanmar (CBM) to intervene. “COVID-19 will have impacts on Myanmar’s economy. At present, tourism has plummeted and regular exports of fruit to China have slowed to a trickle. From a global perspective, many foreign governments and central banks are instituting quick responses to recent situations. In Myanmar, another recent issue is the fluctuation of foreign exchange rates. The kyat has strengthened against the US dollar, making local products more expensive for foreign buyers” said UMFCCI Secretary General U Aye Win on March. 5 “We can foresee how far they impacts will reach – they may affect all local businesses including severe impacts on agriculture-related sectors,” U Aye Win added.
Tax seminar and MoU signing ceremony was held to improve tax compliance practice and promote tax knowledge to facilitate taxpayers from (Official Assessment System–OAS) to (Self–Assessment System–SAS)
Tax seminar and MoU signing Ceremony held in Yangon on Thursday. This seminar was to facilitate taxpayers in their new role as SAS TAX payers to improve tax compliance practice and promote tax knowledge to reduce tax complexity during the transition period from (Official Assessment System–OAS) to (Self–Assessment System–SAS) in Myanmar. Htun Than & Associates and Baker Tilly (Myanmar) co-hosted the seminar. The two associations signed MoU to build business collaboration in this ceremony. Chairman, Htun Than & Associates, Htun Than said “We will serve as tax consultant for tax payers. Under the MoU, we will provide tax service and the Baker Tilly Myanmar will take care of accounting process. This event includes discussions on what is SAS and how it benefits the companies using it.” CEO & Senior Tax Advisor, Htun Than
Microfinance companies need approval from the Microfinance Regulation and Supervision Division (MRSD) to provide microloans to government and private-sector employees.
To provide microloans to government and private-sector employees, microfinance companies need approval from the Microfinance Regulation and Supervision Division (MRSD), the regulator said via a statement. Lenders will not need permission to provide microloans to their own employees, but they need to inform the regulator of their loan-granting process. MRSD’s statement also said that microfinance companies may not ask for recommendation letters from the department where a borrower works, deduct their salary as loan repayment, or pressure borrowers with loan-default action under the Civil Servant Law and Regulation framework. Furthermore, lenders are required to give government employees and their own employees the same treatment when considering loan applications.
The Ministry of Construction will invite Firms to bid for the upgrading of the Yangon–Mandalay Expressway.
The Ministry of Construction will invite Expressions of Interest from the private sector for the upgrading of the Yangon–Mandalay Expressway, U Han Zaw, Minister of Construction said. The project is one of the 58 national development projects listed in the Myanmar Project Bank. The project involves upgrading the 524 -km expressway, currently the most important transport route in Myanmar, to a international-standard expressway with proper safety and road control facilities. The first 64 km from Yangon to Bago is expected to be upgraded with assistance from the Asia Development Bank. Feasibility studies are now being conducted for the remaining sections of Bago-Phyu-Naypyitaw-Meikhtila-Mandalay.