ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Sin0 – Myanmar bilateral trade grows Starting from May-end when compared to the same period of previous months

  Trade between Myanmar and China through the Muse border drastically plunged in the early outbreak of coronavirus and it has rebounded starting from May-end, said an official of the Muse-Namkham Border Trade Chamber of Commerce. “The bilateral trade currently grows compared with the previous months. More than 500 trucks of imported/exported goods are flowing in and out of the Muse border. Myanmar primarily sends green grams, butter beans, various beans, mangoes, frozen fish and other export items, while motorcycles, peanut oil, mobile handsets, construction machines and auto parts are imported, said vice president 1 U Tun Oo of Muse-Namkham Border Trade Chamber of Commerce.
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  Myanmar’s Government Economic Recovery Plan (CERP) attempted to ensure the export competitiveness and investment climate of Myanmar remains upbeat

  Market-oriented economic policies adopted by Myanmar has accorded a prominent role for the private sector. Foreign direct investment and promotion of trade and exports are seen as critical pillars of the country’s economic growth. Opening up of Myanmar economy, removal of sanctions and global trade liberalization through WTO have been positive developments that Myanmar has been able to utilize over the past few years. However, more needs to be done to accelerate investment, trade and exports. Foreign trade remains relatively small compared to ASEAN peers. Enhancing Myanmar’s capacities in terms of trade negotiations, integration of Myanmar into regional value chains and export investment promotion measures to attract FDI has been supported by development partners including trade-related specialist agencies like International Trade Centre (of UN and WTO). Efforts are also being made by state and regional governments to attract FDI and promote exports including cross border trade. A more recent development in this arena is to work towards the development of the second National Export Strategy (2020-25). Being finalized, the focus of NES 2020-2025 is export diversification into higher value-added manufacturing, market-oriented agriculture and services. Several initiatives and plan of actions have been initiated in this regard. However, these need to be now calibrated with the changing reality of the economic impact of COVID-19. One may recall that World Bank has warned as early as during end Mar’20 that “ Myanmar is facing headwinds to growth from its exposure to the COVID-19 related slow down in China and the world”.
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  The actual foreign investment flowed to Myanmar reached over USD $ 2,766 million though approved USD $ 4,250 million in the 2018 – 2019 fiscal year

  Although Myanmar approved a total foreign investment of over US$4,520 million in 2018-2019 fiscal year, an actual flow of investment from 28 countries amounted to just over US$2,766 million, according to a summary report on the activities of Myanmar Investment Commission during the period from October 1, 2018 to September 30, 2019. MIC held 21 meetings in the previous financial year discussing investment matters. In the period, MIC approved 282 new businesses with a total investment of US$2,764.128 million and an additional investment of US$1,394.346 million to the existing 97 businesses.
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  Myanmar’s corn exports to Thailand through borders exceeded over 1.2 million tones during October and May period

  Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through borders between Myanmar and Thailand during October and May period, said an official of the Ministry of Commerce. So far, Myanmar has exported about 2 million tonnes of corns to foreign countries. The sharp increase in export volume is attributed to the growing demand from Thailand this year. Earlier, China is the major purchaser of Myanmar’s corn. Later, Myanmar traders turned to the Thailand border market. Additionally, Myanmar exports corn to India, Viet Nam, Malaysia, Singapore and the Philippines through maritime trade. Yet, the volume of corn exports to those markets is quite small. In the current fiscal, Myanmar has shipped over 500,000 tonnes of corns to external markets through maritime trade.
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  Ministry of Hotels and Tourism (MOHT) invited tender application for Karaweik Palace

  Ministry of Hotels and Tourism has invited tender applications for iconic Karawaike Palace and 3.5 acres of land in Kandawgyi Lake in Yangon. The Karaweik Palace and the land were leased to Zakabar Company Limited in 1999 for 20 years. The palace’s rental agreement is set to end in August 2020. Thus, the ministry is looking for bidders. Any interested investors can submit the application until July 8, according to the tender invitation published in the state-owned media. Zakabar Company Limited holds the permit to operate Kandawgyi Park, which encompasses Karaweik Palance and its land, at the annual rental fee of K30 million, which Yangon Regional Auditor General’s 2014-2015 fiscal year report pointed out being too low. Then, the rental fee was doubled to K60 million per year in 2015.
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  The domestics’ investments exceeded Ks 1,200 billion in eight months of the current 2019 – 2020 fiscal year which increased over Ks 200 billion when compared to the same period of last fiscal year

  Investments by Myanmar citizens in the country exceeded K1,200 billion in the past eight months of the current fiscal year 2019-2020, an increase of over K200 billion compared to the corresponding period of the previous FY, the DICA’s data indicated. Between 1 October and 31 May in the current fiscal, 79 local enterprises were allowed to invest in the country by the Myanmar Investment Commission and the state and region investment committees. Domestic investments have reached K1,297 billion so far, including the expansion of capital by existing enterprises, as per the DICA’s data.
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  UK based firm Penspen firm has won offshore natural gas project from Myanmar oil and gas operator

  UK-based Penspen has won a contract from an oil and gas operator in Myanmar for an offshore natural gas project, rigzone.com reported. Penspen will support the engineering study project with drilling platform diesel fuel tank modification for the multi-field integrated gas development. It will also perform the feasibility study and preliminary engineering for modifying redundant drilling fuel tanks into condensate storage tanks.
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  Electric Power Generation Enterprise (EPGE) extended 12 megawatt gas-powered plant in Magwe tender deadline

  Myanmar’s Ministry of Electricity and Energy has extended the deadline of a gas-to-power plant tender to next week. On April 28, the ministry’s Electric Power Generation Enterprise (EPGE) announced a tender for a 12 megawatt gas-powered plant in Magwe on a build-operate-own basis. The gas plant, situated in Kyaw township, is now inviting bids until June 16. The original deadline was May 27. Magwe Region currently has two hydropower plants in Mone and Kyo Ohn Wa, a solar plant in Minbu and a 66MW gas-fired plant in Magwe township. The bid submission date change was issued to potential bidders via a letter seen by this newspaper. The letter was dated May 29 and signed by EPGE managing director U Than Naing Oo.
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  Nearly two – thirds of Myanmar businesses faced the struggle to survive pandemic due to the impact of COVID – 19 pandemic

  The latest nationwide survey on the impacts of COVID-19 on Myanmar businesses shows that nearly two-thirds of businesses expect to face cash flow problems, putting their survival at risk as government emergency loans have reached only a fraction of businesses so far. The survey by The Asia Foundation, backed by the DaNa Facility and aid from the UK, said on Monday that on average, the businesses in the survey estimated that they require 18 million kyats (US$12,851) in additional cash flow in order to survive until September 2020. The survey estimated that nationwide, businesses need an additional 900 billion to 2.1 trillion kyats (US$642.5 million-1.5 billion), equivalent to 0.7-1.7 percent of the International Monetary Fund ’s (IMF) projection of Myanmar’s GDP for the 2019-2020 fiscal year.
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  International Finance Corporation (IFC) plans to boost funding for off-grid solar power in Myanmar

  The International Finance Corporation (IFC) is considering investing a further US$87 million in Yoma Micro Power to help Myanmar supply electricity to remote off-grid communities and reduce its carbon emissions. Part of the World Bank Group, the IFC said it had proposed arranging a loan package of $80 million to the energy firm, which builds micro power plants and mini-grids in Myanmar. The IFC has already invested in equity in the joint venture and will acquire a further $7.4 million in equity. With initial capital of $28 million in 2018, the firm secured an additional $40 million this year from shareholders that now include Philippine conglomerate Ayala Corporation via its AC Energy subsidiary.