ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Japanese International Cooperation Agency (JICA) will commence preliminary studies for deep – sea port at Dawei SEZ this year

  The Japanese International Cooperation Agency (JICA) will commence preliminary studies for the construction of a deep-sea port at Dawei Special Economic Zone (SEZ) this year, officials of the Dawei SEZ Committee said. “JICA first proposed the study in December 2019 but the process was waylaid by COVID-19. But we discussed the subject again on May 21," said U Myint San, vice chair of the Dawei SEZ Committee. He added that the process will begin this year, after the monsoon season. “We will study the water levels, waves and sea conditions for the port, which is to be part of the SEZ. We also urge interested investors to participate in the initial studies," he said.
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  The value of regional trade exceeds USD $ 6.9 billion in the first half months of 2019 – 2020 financial year

  The value of Myanmar’s regional trade with ASEAN countries through the sea route and land borders was estimated at US$6.9 billion in the first half (Oct-March) of the 2019-2020 financial year, according to the Ministry of Commerce. The ministry reported that imports surpassed exports in regional trade, with exports reaching $2.14 billion and imports valued at $4.75 billion. Since October, Thailand has been Myanmar’s largest trade partner in ASEAN, with trade valued at $2.7 billion, followed by Singapore ($2.2 billion), Malaysia ($772.9 million) and Indonesia ($651.4 million).
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  Japan International Cooperation Agency (JICA) will provide USD $ 46 million emergency loan to small businesses in Myanmar

  The Japan International Cooperation Agency (JICA) has announced emergency loans worth 5 billion yen (US$46.5 million) to assist businesses in Myanmar hit by the coronavirus pandemic as part of its plan to help the country mitigate the impacts of COVID-19. On Monday, JICA said the loans will be low-interest and will support small and medium-sized enterprises (SMEs) to continue operations despite the severe economic situation caused by COVID-19. JICA said it is financing the emergency program by restructuring an ongoing SME financing project known as “JICA SME Two-Step-Loan Phase 2”, which started in 2018, to respond quickly to the serious situation of SMEs. Since late February, Myanmar has faced a significant economic slowdown. The Myanmar government is currently drawing up an economic impact assessment to identify the sectors hit the hardest by the pandemic. The government expects to publish the impact assessment at the end of June.
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  Some of garment manufacturers eye in the production of the mask and PPE during the pandemic

  The foreign direct investments keep flowing into the country amid the COVID-19 crisis, and some garment manufacturers eye production of the mask and PPE (Personal Protective Equipment), which are the basic health and safety requirements during the pandemic, said Director-General U Thant Sin Lwin of the Directorate of Investment and Company Administration (DICA). “The foreign enterprises are steadily entering the country amid the coronavirus. Some investors asked about potential investments. Some factories request to change business from garment production to mask and PPE. At the recent meeting of Myanmar Investment Commission (MIC), they decided to sort out this proposal in a short time. Also, they have responded to those submitting proposals. Those enterprises adapt to changing market conditions due to coronavirus. The mask-wearing culture will keep going for the long term. The production is both for domestic and foreign markets. They have made an inquiry about the quality and price of the masks for the domestic market as well,” he said.
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  Myanmar Ministers express cautions optimism on Myanmar economy if reform plans in place

  Myanmar could see GDP growth of six percent next year if the action plans put forth under the government’s COVID-19 Economic Response Plan (CERP) are achievable and the number of new COVID-19 cases continues to be under control, said U Thaung Tun, minister of Investment and Foreign Economic Relations. In a webinar organised by Australia-Myanmar Chamber of Commerce on May 29, U Thaung Tun said the country faces an unprecedented economic disruption that is similar to the Great Depression in the 1950s. But Nay Pyi Taw has been taking a suite of measures to counter the fallout and ensure rapid reforms. He highlighted the World Bank, International Finance Corporation and the Asian Development Bank have shared that “there is a silver lining” in the country’s economic outlook, with GDP growth potentially hitting 6pc or higher in 2021.
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  Ministry of Commerce (MOC) commits to develop secure ecosystem for e-commerce in Myanmar

  As COVID-19 continues to disrupt the traditional workings of the Myanmar economy, e-commerce is expected to be a key driver of growth for the country post-pandemic, said U Aung Htoo, deputy minister of Commerce, during a virtual conference held on May 28. The Ministry of Commerce (MOC) will release an overview of a plan to develop e-commerce in Myanmar soon, he added. "It's a good time now to pave the way for e-commerce to develop and contribute to the growth of the Myanmar economy," U Aung Htoo said. "Mobile phone penetration is over 100 percent now so it is a good time to leverage on this for the further development of e-commerce."
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  Ministry of Electricity and Energy will not extend for major solar farm tender

  Myanmar’s Ministry of Electricity and Energy has rejected requests from prospective bidders for a major solar farm tender to extend its one-month deadline, which they say is impossible to meet because of the COVID-19 crisis and tough conditions attached. “At the moment, EPGE does not consider any extension of Bid Submission Date,” the Electric Power Generation Enterprise (EPGE) said, according to its clarification document seen by The Myanmar Times. The clarification to the invitation to bid was issued as part of the tender document, according to a letter from the EPGE addressed to potential bidders. The letter was dated May 29 and signed by EPGE managing director U Than Naing Oo.
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  Sino –Myanmar border trade decreased USD $ 162.6 million as of 15 May in the current fiscal year

  Sino-Myanmar border trade has registered a decrease of US$162.6 million between 1 October and 15 May in the current fiscal year, according to the Ministry of Commerce. Ministry of Commerce’s data shows the value of Sino-Myanmar trade at all five borders touched $3.75 billion in the current fiscal, which significantly plunged from $3.9 billion recorded in the year-ago period. This FY, border trade values totalled $3.07 billion at the Muse border, $106.7 million at Lwejel, $331.15 million at Chinshwehaw, $231.6 million at Kampaiti, and over $4 million at Kengtung. The Commerce Ministry’s data showed a drop in trade value at all those borders. The decline in trade is attributed to the trade suspension the tight security measures amid coronavirus worries.
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  Ministry of Electricity and Energy will launch a major new bidding round for oil and gas exploration this year

  Myanmar will launch a major new bidding round for oil and gas exploration this year, according to a senior energy ministry official. “It is almost certain that it [the bidding round] will be launched during this year,” said the Ministry of Electricity and Energy deputy permanent secretary U Htay Aung on May 26. The government is revising the Production Sharing Contracts, he added. “After amending [the terms and conditions], open blocks will be launched for international bidding,” officials said.
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  World Bank approved more USD $ 350 million loans for electricity, health in Myanmar

  The World Bank on May 29 approved US$350 million in International Development Association (IDA) credit to increase power generation in Myanmar and help the country meet a national goal of providing each citizen with access to electricity by 2030. It also approved $110 million in additional financing for the Essential Health Services Access Project (EHSAP), implemented nationwide since 2015. Myanmar must double its power production capacity in the next 5-7 years to meet that goal. Only half the households in Myanmar are currently connected to the national grid, which is the lowest population with access to electricity in Southeast Asia, said Mariam Sherman, World Bank Country Director for Myanmar, Cambodia and Lao PDR.