Myanmar receives more overseas financial support to combat COVID-19

Japan will provide ¥45 billion in emergency funding to assist Myanmar in supporting the economy in the wake of COVID-19. Japanese Foreign Minister Toshimitsu Motegi extended the financial support during his meeting with State Counsellor Daw Aung San Suu Kyi in Nay Pyi Taw on August 24. This will consist of ¥30 billion in emergency budget support and ¥5 billion in official development assistance (ODA) loans to help small and medium-sized enterprises(SMEs) in Myanmar respond to COVID-19. Japan is pursuing cooperation with Myanmar in all areas, including health, education, agriculture, and administrative capacity building while promotion responsible investment by Japanese companies.

The two sides also discussed plans to facilitate a rapid economic recovery in Myanmar and keep the channels clear for more Japanese investments in the country. Negotiations to relax travel restrictions to allow Myanmar technicians and businessmen to enter Japan under a business track program starting next month also took place. Japan has so far provided technical as well as medical supply and equipment assistance equivalent to US$30 million to Myanmar.The additional support came shortly after more than K80 billion was freed up for the prevention, control and treatment of COVID-19 activities in the coming fiscal year under a Debt Service Suspension Initiate (DSSI) endorsed by the World Bank and countries under the G20. The DSSI was endorsed in April in response to a call by the World Bank and the International Monetary Fund(IMF) to grant debt-service suspension to the poorest countries to help them manage the impact of the COVID-19 pandemic.

The main goal of the DSSI is to allow poor countries to concentrate their resources on fighting the pandemic and safeguarding the lives and livelihoods of the most vulnerable people. Borrowers therefore commit to use freed-up resources to increase social, health, or economic spending in response to the crisis. Myanmar has so far also received half of a US$700 million fund provided by the IMF in July to support its economy. The second tranche of funds will be received in the coming fiscal year. The government will also be able to tap into remaining funds from the World Bank, Asia Development Bank and Japan International Cooperation Agency awarded this year to support the economy moving forward. It will also be spending more to ease the impact of COVID-19 on the economy, leading to a forecast budget deficit of 5.41 pc of GDP this year.

Source: Myanmar Times

MasterCard plans to open local branch office in Myanmar

MasterCard announced that they are planning to establish a local branch office in Myanmar and that they will appoint a country business development manager. MasterCard aims to support the advancement of Myanmar’s digital payments ecosystem and its efforts to build a futuristic and inclusive cashless society. The establishment of the local office also underscores MasterCard’s long-term commitment to advancing Myanmar’s national digital agenda and reflects the company’s continued confidence in the market. Myanmar’s GDP growth is expected to rebound to six per cent in 2021, making it one of the fastest-growing economies in the Southeast Asian region.

The market has successfully leapfrogged several of the usual transition steps on its way to becoming a digital economy. The government of Myanmar has been actively leveraging these advances to lay the foundation for a new payments’ infrastructure designed to allow entrepreneurs and businesses to capitalize on  vision to enable sophisticated capabilities like real-time payments for its citizens and businesses, Myanmar is at a truly pivotal stage in its economic evolution.MasterCard has a long and established history in partnering with hundreds of nations around the world on growing and scaling their payments ecosystems. MasterCard’s ambition for Myanmar is no different – the organization is focused on bringing its global best practices, coupled with a deeply rooted local presence and understanding of the domestic environment, to bear, to help the country secure a digital future defined by efficiency, agility, and security.

As Myanmar continues its digital transformation, it is also necessary to empower its people with the skill sets and knowledge they need to participate actively in the digital economy. MasterCard will bring to Myanmar decades of experience in technology skilling that will enable the country to accelerate human capital development. Furthermore, as part of the organization’s commitment to growing the local talent pool, MasterCard is well on its way to assembling a local leadership team which will be integral for sustainable, domestically relevant, long-term success” he added. MasterCard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible.

Source: The Global New Light of Myanmar

Myanmar-China border trade drops by $147 mln as of 14 August

Myanmar’s border trade with China has registered a decrease of US$147.27 million between 1 October and 14 August in the current financial year 2019-2020. Data from the Ministry of Commerce show the value of Myanmar-China border trade in all five borders touched over $5.07 billion in the current financial year, which significantly plunged from over $5.2 billion recorded in the year-ago period.This FY, border trade values totalled $4.19 billion through Muse border, $126.29 million via Lwejel, $471 million via Chinshwehaw, $279.25 million via Kampaiti, and over $4.84 million via Kengtung. The Commerce Ministry’s data showed a drop in trade value through all those border areas between Myanmar and China.

The decline in trade is attributed to the trade suspension and trade delay amid the tight security measures of coronavirus. China has been stepping up border control measures to contain the spread of the coronavirus infection.Next, the export of agricultural products is often halted, on account of China clamping down on illegal goods.Myanmar merchants are facing difficulties in exporting goods to China through the legitimate channel as they find the tax levied by China is too high.In a bid to lower trade barriers and offer relief to Myanmar traders through the border trade channel, the Ministry of Commerce, the relevant departments and Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts.

The two countries are making efforts to set up more border economic cooperation zones and promote border trade. Myanmar’s MOC is trying to boost exports of rice, broken rice, agro-products, fruits and fisheries to China through diplomatic negotiations. After a series of negotiation between Myanmar and China, the General Administration of Customs of the People’s Republic of China (GACC) granted licences to 43 Myanmar companies on 10 July 2020 to export the rice to China through a legitimate trade channel.Myanmar exports rice, sugar, pulses, sesame seeds, corn, dried tea leaves, fishery products, minerals, and animal products to China. At the same time, it imports agricultural machinery, electrical appliances, iron and steel-related materials, raw industrial goods, and consumer goods from the neighboring country.

Source: The Global New Light of Myanmar