ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  More than 390 Mandarian businesses received emergency COVID – 19 loans

  More than 390 coronavirus-affected businesses from Mandalay Region have been approved so far to receive the emergency Coronavirus Fund, said an official of the Mandalay Region Chamber of Commerce and Industry (MRCCI). “The businesses approved for the loan includes food industry, weaving business, hotels and tourism enterprise, private schools and gems and jewellery business,” said an MRCCI official. More than 3,400 enterprises across the country have been granted over K100 billion from the Fund between 9 April and 2 July, as per the committee’s data.
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  The total trade between Myanmar and foreign countries reached over USD $ 28.3 million in ten months of 2019 – 2020 fiscal year

  The total trade between Myanmar and foreign countries reached over 28.3 billion U.S. dollars in ten months of present fiscal year (FY) 2019-2020, according to figures released by the Commerce Ministry Xinhua reported. From Oct. 1, 2019 to July 3, Myanmar earned over 13.2 billion U.S. dollars while its import shared over 15 billion U.S. dollars.
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  Foreign investors purchased over 38,000 shares in equity market over the past 3 months of current 2019 – 2020 fiscal year

  Foreign investors have purchased over 38,900 shares of three listed companies on the Yangon Stock Exchange (YSX) over the past three months, according to the statistics released by the exchange. The Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. At present, shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd, and Ever Flow River Group Public Co., Ltd (EFR) — are available for local investors for trading. Of them, FMI, MTSH and EFR accepted foreign shareholding, and FPB is for block trade only. As of 10 July, foreigners hold over 5,700 shares of FMI, over 27,800 shares of MTSH and 5,380 shares of EFR.
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  Myanmar needs to bring in whole ecosystem instead of a factory to sustain employment

  Hundreds of thousands of migrant workers are returning home due to the COVID-19 pandemic, which caused factories to suspend their operations. This can worsen the unemployment rate in the country where there is strangely no official unemployment rate. The government of Myanmar is trying to find a way to create jobs for returning migrant workers. “In order to sustain employment we have to get over this mindset that being able to bring a factory into the country is the end objective. No, that’s just a start,” Mr. Surge Pun @ U Theim Wai, Executive Chairman of Yoma Strategic, said during a webinar organized by UMFCCI. In the past, the country, he pointed out, was more concerned about swapping the flies that fly into when the doors are open than actually allowing the wind to blow in. “That has always been a problem,” he said.
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  Ministry of Commerce announced that exporters need to apply for licence for over 1,200 items

  Out of more than 10,000 goods, only over 1,200 goods are necessary to apply for an export licence, according to an announcement of the Ministry of Commerce released on 8 July. The Ministry of Commerce requires a total of 1,224 items to apply for export licences under HS Code 2017 version, which contains alive animals, rare fish species and animal products, medicinal plants, forest products, mining products, raw materials and restricted chemical products, explosive devices, fertilizers and antiques. HS code 2017 requires applying for the export licence but the government has relaxed this licence requirement rule step by step. Previously, it was necessary to apply for the export licence for over 10,000 items.
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  Micro, Small and Medium Enterprises (MSMEs) received the largest share of COVID fund amounting over K 70 billions

  Out of K100 billions of COVID Fund, micro, small and medium enterprises (MSMEs) received the largest amount of the fund totalling over K70 million, according to the committee to remedy the economic impacts caused by the pandemic. The Committee for Remedial Works on Economic Impacts of COVID-19 has set up the coronavirus fund in order to provide necessary monetary assistance to the businesses hit by the pandemic. That is why the committee has granted the loans to CMP garment businesses, hotels, and tourism-related businesses and small and medium enterprises (SMEs), which are badly impacted by the pandemic. Regarding the loans, the committee has granted the loans seven times to a total of 3,393 businesses which are in accord with the loan terms and conditions.
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  Yangon Region Investment Committee (YRIC) has approved over 23 million worth eight foreign projects including CMP businesses

  The Yangon Region Investment Committee (YRIC), at a videoconference held on 8 July, has approved eight foreign projects from China, Viet Nam, Samoa and Hong Kong (SAR), with an estimated capital of US$23.784 million. The projects will create over 5,900 jobs. They will invest in manufacturing of sportswear, bags, garments, hats and fabric on a Cutting, Making, and Packing (CMP) basis and hotel business, according to the Directorate of Investment and Company Administration (DICA).
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  International Monetary Fund (IMF) takes stock of Myanmar’s economy and society under the COVID – 19 pandemic

  Although officially recorded cases of COVID-19 in Myanmar remain low, the social and economic effects could be significant, given the externally oriented economy, uneven social safety nets, and the fragile healthcare system, according to a report just released by the International Monetary Fund. IMF emergency financing of $356.5 million, along with external financing, the Debt Service Suspension Initiative, and continued capacity development, are alleviating the impact of COVID-19, while establishing the roots for more sustained and inclusive growth. The government’s COVID-19 Economic Relief Plan aims at minimizing the pandemic’s impact by stimulating the economy and boosting spending on health and social safety nets. Compared to other countries in the region, Myanmar’s COVID-19 outbreak appears to be limited. The country reports about 300 confirmed cases despite its large population of 54 million, possibly reflecting limited testing capacity. The authorities implemented strict containment measures well before the case count picked up, including travel restrictions, closure of land borders, and bans on mass public gatherings, helping to flatten the curve of infections.
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  The cold storage factories for livestock products will be built with USD $ 4 million World Bank’s loans in Yangon

  US$4 million will be loaned from the World Bank to build cold storage factories for livestock products in Yangon, Bago and Ayeyawady Regions, said Dr Ye Tun Win, director general of the Livestock and Veterinary Department. He disclosed the information during a video conference between State Counsellor Aung San Suu Kyi and departmental officials over the Covid-19 impact on Myanmar’s livestock sector. Dr Ye Tun Win said there was some loss and damage during the Covid-19 period with slow commodity flow as there are not enough cold storage factories, stressing the need to build new ones. Therefore, new cold storage factories would be built for those three reasons by seeking a WB loan of US$4 million.
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  More than 3,300 businesses have been granted COVID fund in the past four months

  More than 3,300 enterprises have been granted over K100 billion from the Coronavirus Fund in the past four months, as per the data of a committee to remedy the economic impacts caused by the pandemic. The committee has been granting the loan to the business stricken by the pandemic from the initial fund, with K50 billion allocated from the country’s revolving fund and another K50 billion from the social welfare fund. The priority sectors are CMP garment business, hotel and tourism service and small and medium enterprises (SMEs). The interest rate for a one-year period is only one per cent. Regarding the Fund, 85 businesspersons have been granted K5.696 billion in the first batch, while 113 enterprises were selected for K4.495 billion in the second batch, 111 enterprises in the third batch for K3.5466 billion, 417 in the fourth batch for K15.079 billion, 290 in the fifth batch for K8.7335 billion, 2,078 in the sixth batch for K49.116 billion and 307 in the seventh batch for K14.5564 billion.