ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar considers applying for International Monetary Fund (IMF) financing to get through COVID – 19

  The Central Bank of Myanmar (CBM) and the Ministry of Planning, Finance, and Industry are considering applying for financing options provided by the International Monetary Fund (IMF), CBM governor U Kyaw Kyaw Maung said. The IMF on April 24 held a meeting via teleconference with the ASEAN countries. U Kyaw Kyaw Maung attended and discussed the negative impact COVID-19 is having on the Myanmar economy and how the country has responded so far. The Ministry of Information released a summary of a meeting between U Kyaw Kyaw Maung and Kristalina Georgieva, managing director at the IMF. According to that report, U Kyaw Kyaw Maung said domestic demand is sufficient to support the economy in the short term. The CBM has already taken measures to improve and encourage business by cutting interest rates by 1.5 percent. It also extended the deadline for local banks to comply with four financial directives by three years to August 2023.
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  The validity of importer and exporter registration will be extended up to 30 July 2020

  Following the coronavirus impacts, the validity of importer and exporter registration that will expire between 27 April and 30 July 2020 has been extended until 30 July, according to the notice of the Trade Department. After that extension, the relevant companies can extend their registration from the new deadline mentioned. The trade department offers an online system for over 700 items including CMP garment and necessary import items such as pharmaceuticals and related items, hospital equipment, foodstuffs, fertilizers, palm oil and oil products, milk and dairy products, electronic devices, fuel oil, lubricants, motorbikes and bicycles, agricultural products, lead, sugar, natural gas and other products. To carry out the fully online licencing system during the emergency period of coronavirus outbreak, H.S codes for over 700 items have been issued, indicated the data by the Trade Department.
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  Myanmar economic growth to rebound to 6.8 percent in 2021 if the virus is confined quickly

  Economic growth for Myanmar will slow significantly to 4.2 percent this year under the global health crisis but could rebound to 6.8pc in 2021 if the virus is confined quickly, according to a report by the Asian Development Bank (ADB). The ADB’s annual Asian Development Outlook report, released this month, puts Myanmar’s GDP growth forecast in 2020 as the second highest in Southeast Asia, after neighbouring Vietnam, which is estimated to grow at 4.8pc. Overall, ADB expects growth in Asia to slow sharply to 2.2pc in 2020 because of the COVID-19 pandemic and to recover to 6.2pc in the following year. Forecasts are based on the assumption that countries seriously affected, including the major economies of the US, Europe, and China, will have their outbreaks come under control in three to six months and that activity will gradually return to normal
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  Myanmar Competition Commission issued the restrictions on increasing sales

  Myanmar Competition Commission issued Order (2/2020) on 25 March, exercising its power conferred under Article 56-(b) of the Competition Law. The order is directed at businesses (excluding the service industry) and aims to foster free and fair competition, develop fair competition in the market unilaterally, receive equitable benefits and protect the public interest by issuing the following compulsory restrictions on increasing sales. (a) Advertising or the use of other methods to increase sales need are required to use language, symbols, images and data that assures correct responsibility or certain guarantee. (b) The use of language, symbols, images and data that may mislead, misinform, coerce, deceive or confuse the public is prohibited.
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  Prudential Myanmar provides free additional insurance cover against COVID – 19

  In light of the COVID-19 pandemic, Prudential Myanmar Life Insurance Limited (Prudential Myanmar), a wholly-owned business unit of Prudential Corporation Asia, announced on April 22 that it will provide its customers with free additional COVID-19 coverage to help protect them against the threat posed by the virus. Under the COVID-19 Free Cover initiative, Prudential Myanmar will issue lump sum benefits to any of its life insurance customers who is unfortunately diagnosed with COVID-19 or passes away as a result of the disease. All new and existing customers will automatically benefit from the following free additional insurance cover. The offer is applicable to all customers on boarded on or before 11 July. The insurance coverage is valid for 90 days.
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  The Central Bank of Myanmar announced that all banking operations hours will be now 10 am to 2 pm starting from April 28

  All banks in Myanmar will open from 10am to 2pm starting April 28 and last for the duration of COVID-19, the Central Bank of Myanmar (CBM) said on April 24. The decision was made after a video conference between the CBM and private banks on April 21 with the aim of controlling the spread of the deadly virus among bank employees and for banking operations to continue smoothly, the statement said. Under the original announcement No 14 of the central bank dated August 2, 1999, operating hours of banks are designated from 9:30am to 3pm on weekdays and on the last working day [salary day] the working hours are from 8:30am to 2:00pm.
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  Government set to unveil COVID – 19 economic response plan that will expand economic stimulus and social protection measures

  Due for release in the coming days, the COVID-19 Comprehensive Response Plan will include new economic stimulus measures and increased funding for the health sector, as well as detail on how the plan can be funded. The government is set to unveil a COVID-19 response plan that will expand economic stimulus and social protection measures while also boosting healthcare spending to better prepare the country for an expected rise in coronavirus cases. The COVID-19 Comprehensive Response Plan is likely to be released in the coming days, Frontier understands, with the government only waiting for development partners to provide feedback on the final draft.
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  Myanmar state-owned and private hotels receive land lease payments for six months to ease the pressure wrought by COVID-19

  The government will defer land lease payments for six months for a total of 47 state-owned and private hotels in Myanmar to ease the pressure wrought by COVID-19, the Ministry of Hotels and Tourism announced on April 21. The next land lease payment is due September 30. Hotels which are no longer in operation are not included. "In general, the land leases for 26 state-owned hotels and 21 hotels run by foreign investors or as part of joint ventures with local partners have been deferred," said U Myo Myint, director of the Ministry of Hotels and Tourism. Due to the spread of COVID-19 spread in Myanmar and the rest of the world, tourist arrivals to Myanmar have collapsed and hotel and tourism businesses have been severely affected.
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  State Counsellor chastises against factory owners to shut down factories and avoid mass gatherings at workplaces until COVID-19 inspections

  Action will be taken against factory owners who have flouted a government order to shut down factories and avoid mass gatherings at workplaces until COVID-19 inspections have been carried out at their premises, State Counsellor Daw Aung San Suu Kyi said on April 22. Factories and workshops around the country will be allowed to reopen after the inspections have taken place between April 20 and 30, with those manufacturing essential goods such as pharmaceuticals and food to be given priority. But few have heeded the government's order to close their operations for the period. During a teleconference with the State Counsellor, U Pyi Thit Nyunt Wai, chair of the Confederation of Trade Unions of Myanmar, reported that several garment factories in Yangon's Hmawbi and Hlaing Tharyar townships, including Shwe Nay Win, KHL, YJ, Myanmar Rock and Global and Universal were still open on April 22.
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  Some customs restrictions to be eased to facilitate the import and export process during the COVID-19 outbreak

  The government will reduce trade restrictions and red tape to facilitate the import and export process during the COVID-19 outbreak. Starting April 20, the customs department will reduce customs duties for businesses operating with the Myanmar Automated Cargo Clearance System (MACCS). Paperwork will also be streamlined, with an electronic version of Form D for preferential tariff treatment in Asean to be issued to simplify procedures between all the Asean countries.