The Myeik Archipelago has the potential to become Myanmar’s fifth regional tourist destination

by HOTEL & TOURISM

The Myeik Archipelago is likely to be included as Myanmar’s fifth tourist destination, and efforts are being made to develop marine tourism, said an official from the Department of Hotels and Tourism. The Myeik Archipelago has beautiful islands; Underwater views; Rare coral reefs remain; Due to the unique lifestyle of the Salunga people, it has become a popular tourist destination. Due to these circumstances, the hotel and tourism industry in Tanintharyi Region needs to develop marine tourism. For the development of community-based tourism, the regional government; Tour operators’ associations; It is reported that they are working in collaboration with NGOs. CBT is being developed in conjunction with Marine Tourism. Because it is based on an island in the sea, it is called an island-based tourism business because it is based on an island village. In World Tourism, more than 60% go to Marine Tourism. They are stuck in Tanintharyi Region alone. 

There are a number of factors that need to be addressed in the success of marine tourism, as well as the development of villages on the islands related to marine tourism, and the key CBT needs to be in place. So if you look at the tourism industry in Tanintharyi Region, there are currently four tourist destinations in Myanmar. Yangon, Mandalay Bagan It is called Taunggyi. Tanintharyi region is the most promising tourist destination. Myeik Archipelago has also been announced to international travelers. It can be explained in detail about Myeik Archipelago tourism to any country. The beauty of the islands; The show focuses on underwater beauty. Corals, especially in our area, are becoming rare even in Southeast Asia. So it is needed to keep these things going. What needs to be done everywhere is to create tourism. As it is the only marine tourism destination in Myanmar, it has a lot of potential in the future. The Myeik Archipelago is one of the four developed tourism industries in Myanmar and may increase to five in the future.

 The first island-based tourism venture in Burma will open in January 2021 in Don Nyaung Hmaing village in the Myeik Archipelago, and locals say security and other needs remain. They are the local administration, but they do not have the authority to go beyond the framework. If the government can provide security for visitors, it is ready to support. Nyaung Hmaing Beach is accessible 24 hours a day. But as the number of passengers increased, so did the number of high-speed vehicles. At that time, the beach was not easily accessible. That is why they need a jetty. In Don Nyaung Hmaing village, some buildings for CBT have been built on an area of ​​about two acres and the village will be responsible for providing services. Once tourism starts here, security will be needed. A village jetty will be needed.

Moreover, if tourists come in, there will be job opportunities for the grassroots. They will arrange for you to go to the islands the visitors want to go by small boat. There are many villages on the island, so it is like cycling. If the visitors want to go to other places to study, they will arrange it. There is Salung culture and traditional dances. CBT (Community Based Tourism) was proposed to the Tanintharyi Region Government after 2017 to develop tourism in Tanintharyi Region. In January 2021, Myeik District, it would open in Done Nyaung Hmaing village and another in Kawthaung district. Three CBTs and one CBT can be implemented in Tanintharyi Region at present, as daytime CBT is being carried out in Tizi Village, Dawei District.

Source: Daily Eleven

The ten milestones that shaped Myanmar’s economy in 2020

by ECONOMY

The year 2020 has not been a great one for the Myanmar economy, with GDP growth slowing and unemployment on the rise. Due to the slowdown in economic growth, poverty rates are forecast to increase from 22.4pc in fiscal 2018-19 to 27pc in fiscal 2020-21, according to the World Bank. With limited savings, many poor households are being forced to reduce their food and non-food consumption in order to cope with income and job losses. Still, the pandemic spurred developments on several fronts, ten of which are listed below:

1.Economy goes online

From food deliveries to the sale of plants and jewelry, COVID-19 forced both businesses and consumers to move online this year. So the number of businesses that have moved online has doubled since the pandemic. This year, Statistica is also projecting a 7.1 percent increase in digital transactions and a 19.7pc rise in the number of users adopting digital modes of payment and transfers in Myanmar. The Myanmar government has also moved key administrative functions such as company registrations, tax filing and trade licensing online.

Renewals and fee payments for some permits as well as marketing and promotions for local trade and tourism are now being conducted online. Payments to vulnerable households under the government’s COVID-19 Economic Relief Plan were also distributed through mobile platforms, while social security payments, loans for farmers, emergency funds for garment workers and financial relief for street vendors were disbursed digitally.

2. Central Bank lowers interest rates

The Central Bank of Myanmar (CBM) slashed interest rates by another 1.5pc in April, making it the third time it has done so since COVID-19 was declared as a global pandemic. The decision to cut rates was announced under Directive No. (8/2020), issued on April 27 and effective May 1. The CBM first cut rates by 0.5pc on March 12. A second 1pc cut was announced on March 24. The April 27 cut brings total rate cuts to 3pc within two months.

Starting from May 1, bank deposit rates in Myanmar were reduced to a minimum of 5pc and lending rates will not exceed 10pc for collateralised loans, according to the CBM’s new directive. However, rates for unsecured loans will remain at 14.5pc. The reduction of interest rates is expected to provide some relief for borrowers and help support economy.

3. Dollar exchange rate hits two-year low

The exchange rate in Myanmar reached its lowest level this year, with the kyat trading for less than K1280 per US dollar in the local market at the trough. The dollar weakened against the Myanmar kyat due to a fall in local demand for the currency to trade goods amid COVID-19.

The Central Bank purchased US$318.3 million in fiscal 2019-20, which is the year it bought the most dollars in the money market. Local currency watchers said the Central Bank has to purchase more dollars to stabilise the exchange rate. The US dollar also weakened after the Federal Reserve on September 2 announced a new strategy to boost employment and let inflation rise higher for longer than in the past.

4. Interbank transactions permitted

The Central Bank of Myanmar launched its Financial Network System 2 (CBM- NET2), which is the upgraded version of the original CBM-NET, on November 16. CBM-NET is a secure and efficient payment and settlement infrastructure, set up to facilitate and digitalise banking and finance in Myanmar.

The launch of CBM-NET2 will enable 24/7 domestic local currency remittance between different banks and make formal remittance services more accessible to those who have previously relied on cash payments and high-risk informal remittances. It will also help facilitate bulk payments such as payroll transfer and automatic withdrawal of taxes and utilities bills.

Supported by the Japan International Cooperation Agency, CBM-NET2 was developed in response to the surge in online transactions via mobile banking in Myanmar. The system enables interbank transactions between all Myanmar banks, including commercial, state-owned as well as foreign banks which are licensed to do business in the country. Additional features will be added to the system over the first half of 2021.

5. Yangon ports receive biggest ships in history

The Yangon River was able to accommodate the largest vessels in its history as a result of improved waterways in the river this year. Ships with drafts of 10 meters will be allowed to dock at Yangon’s ports from this year onwards. This year, a 10.5-meter-draft vessel was able to call at Yangon for the first time in Myanmar port history. From July to November, a total of 15 ships with drafts of 9.5 meters docked at Yangon’s ports, according to an MPA report.

The development is part of a five-year plan to enable larger foreign cargo ships to call at Yangon’s ports. Larger vessels allow more goods to be delivered per call, which, in turn, enables importers to accelerate delivery times and cut costs. Under the plan, Singapore-based Star High Asia Pacific Co was awarded a US$25 million five-year dredging contract in the Yangon River to facilitate these vessels.

6. Reviving tourism

The Ministry of Hotels and Tourism announced plans to revive tourism in Myanmar earlier this month. These include new offerings such as non-landing flight tours, road trips and Yangon river cruise tours. Myanmar’s first non-landing sightseeing flight tour to Kyaik Htee Yo and Zwekabin Taung, operated by Myanmar National Airlines, took off on December 20. Efforts to expand flight and cruise tours will continue depending on the public’s response and interest.

Some private Mandalay-based airlines have also made preparations to conduct 30-minute non-landing sightseeing flights to Bagan and Inle soon. Revenue from tourism has dropped by more than 80 percent, or around US$2.3 billion, to just US$543 million since the pandemic in Myanmar, according to a survey by the Ministry of Hotels and Tourism. The survey covered the tourism sector together with other related sectors like international airlines, domestic transportation, food and beverage, accommodation, entertainment and culture as well as shopping.

7. Industrial park focus

Myanmar partnered with international investors to open two new industrial zones which it hopes will lure foreign manufacturers to open up factories in Myanmar. On December 27, the government inaugurated the US$274 million Yangon Amata Smart and Eco City industrial park project in Dagon, which will be jointly constructed by the Myanmar Department of Urban and Housing Development and Thailand’s Amata Corporation PCL under the supervision of the Yangon Region Government.

The Yangon Amata Smart and Eco City was inaugurated shortly after development of the US$110 million Korea-Myanmar Industrial Complex commenced in Hlegu township, Yangon, on December 24. The two new industrial parks will give investors more options to open manufacturing facilities in Myanmar as they will come equipped with basic infrastructure such as roads and power plants and offer incentives such as tax exemptions.

According to the Directorate of Investment and Company Administration, the amount of foreign investment in fiscal 2019-20 fell short of the targeted US$5.8 billion due to the COVID-19 outbreak. In November, Japan also made an official offer to Myanmar and Thailand to invest in the long delayed Dawei Special Economic Zone (SEZ). The Japanese government will commence a survey to determine the total amount of capital expenditure required to participate in the development of the Dawei deep sea port project.

8. First modern credit bureau launched

Myanmar Credit Bureau Limited (MMCB) on December 30 launched the country’s first and only modern credit bureau. MMCB, which is licensed by the Central Bank of Myanmar, will provide Myanmar with a modern credit reporting system that will enable lenders to expand the financing options available for individuals and businesses. It will also encourage more responsible lending in the country.

The bureau has been centralising information gathered from financial institutions in Myanmar about their borrowers since its soft launch in November. With this information, the bureau produces credit reports on individuals or corporates to help financial institutions make better lending decisions and lower the risk of defaults. Borrowers, in turn, should expect faster and more competitive services from lenders.

9. Myanmar receives Malaysian LNG

For the first time in Myanmar, liquefied natural gas (LNG) will be used to power up seven new plants in Magwe, Shwe Taung, Kyun Chaung, Ahlone, Kyauk Phyu, Thanlyin and Thaketa to produce a total of 1166MW of power for summer this year. The country took delivery of its second load of liquefied natural gas (LNG) from Malaysia on November 25. A total of 126,000 cubic meters of LNG was delivered to CNTIC VPower at the Thilawa port in Yangon and will be transferred via a floating storage until to the 350 MW Thanlyin power plant and the 400MW Thaketa power plant.

The Ministry of Electricity and Energy signed agreements with Petronas LNG Ltd of Malaysia and CNTIC VPower of China earlier this year to purchase LNG over a five-year period. Petronas delivered the first two LNG cargoes – 190,000 cubic meters worth- to Myanmar in May and June. Electricity is generated mainly by hydropower and natural gas in Myanmar, meeting 55pc of the country’s electricity needs. The Ministry of Electricity and Energy plans to meet 75pc of the country’s electricity needs by 2025. It is also aiming to have renewable sources account for 14pc of its total generation within the five-year period.

10. Govt supports microfinance

The government extended K59.5 billion in loans to 44 microfinance institution (MFIs) at an interest rate of 2pc interest per annum this year. Small businesses like teashops and small restaurants will be able to apply for the loans. Up to K100 billion in short-term commercial loans to MFIs at interest rates not exceeding 9 percent with collateral and not exceeding 11.5 pc without collateral were extended through the State-owned Myanmar Economic Bank.

The Ministry of Planning and Finance issued several statements directed at microfinance institutions, instructing them not to force borrowers who are unable repay their debts to do so amid the current period of declining business and income.

Source: Myanmar Times

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External trade dives by $2 bln as of 18 December

by TRADING

Myanmar’s external trade between 1 October and 18 December in the current financial year 2020-2021 touched a low of US$6.14 billion, a sharp drop of $2.065 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. According to the ministry data during the same period in the previous FY, trade stood at $8.2 billion. As of 18 December 2020, Myanmar’s export was worth $2.87 billion, which plunged from $4.1 billion registered a year-ago period. Meanwhile, the country’s import was valued $3.27 billion, showing a decrease of $824 million compared with the last FY. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limited the trading time to contain the spread of the virus.

Moreover, the severe container shortage has become the biggest disrupter in shipping amid the coronavirus impacts, on the back of robust demand on the Asia-Europe and transpacific trade. Container shipping costs are drastically surging. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders.
Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods. At the same time, it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports.


Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government. Myanmar has already surpassed the total trade value target of $34 billion for the last FY, said an official from the ministry. Last FY2019-2020, Myanmar’s external trade reflected an increase of $1.5 billion compared with the FY2018-2019 as it increased from over $35 billion to $36.6 billion. Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. The Ministry of Commerce is focusing on export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade environment.

Source: The Global New Light of Myanmar

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Domestic, foreign enterprises create over 9,000 jobs in Oct-Nov

by INVESTMENT

The domestic and foreign enterprises permitted and endorsed by the Myanmar Investment Commission (MIC) and other regional and state investment committees created 9,031 jobs in the first two months (Oct-Nov) of the current financial year 2020-2021, according to the Directorate of Investment and Company Administration (DICA). The job creation in the past two months slowed further than the rate in September, according to statistics issued by the Myanmar Investment Commission (MIC). The job creation stood at 4,485 in November and 4,546 in October, which plunged from 11,990 jobs in September. During the October-November period, the foreign enterprises created over 7,081 jobs for locals, adding the existing foreign enterprises’ recruitment.

The domestic enterprises under the Myanmar Investment Commission created 1,950 jobs for local people, including increased employment by the existing enterprises. MIC and the relevant investment committees in the past two months gave the go-ahead to 14 foreign enterprises from China, Singapore, the Republic of Korea, Thailand, India and Viet Nam in manufacturing, livestock & fisheries and agriculture and other service sectors. They brought in an estimated capital of US$199.756 million, including the expansion of capital by existing enterprises. Meanwhile, 17 domestic enterprises invested K69.86 billion in manufacturing, real estate, hotel & tourism, agriculture and other service sectors. In the previous financial year ended 30 September 2020, the domestic and foreign enterprises have created about 200,000 jobs since October 2019.

The job creation includes employment of about 5,000 expatriate workers in Myanmar, according to the Directorate of Investment and Company Administration (DICA). MIC is prioritizing the labour-intensive businesses. The commission ensures to approve responsible companies by assessing environmental and social impacts. The commission is working together with the relevant departments to screen the projects, said director-general of the DICA. According to the DICA, domestic and foreign projects employ over 670,000 residents in the incumbent government period. Those enterprises have created over 96,000 jobs in the FY2016-2017, 110,000 jobs in the FY2017-2018, over 53,000 jobs in the 2018 mini-budget period, over 180,000 jobs in the FY2018-2019 and 210,000 jobs in the FY2019-2020 respectively.

Source: The Global New Light of Myanmar

Myanmar-Credit-Bureau

First modern credit bureau launched in Myanmar

by SERVICES

Myanmar Credit Bureau Limited (MMCB) on December 30 launched the country’s first and only modern credit bureau.

MMCB, which is licensed by the Central Bank of Myanmar (CBM), will provide Myanmar with a modern credit reporting system that will enable lenders to expand the financing options available for individuals and businesses. It will also encourage more responsible lending in the country. The bureau has been centralising information gathered from financial institutions in Myanmar about their borrowers since its soft launch in November. This includes borrowers’ personal and contact information, credit accounts and repayment history as well as information on any collateral listed to obtain a loan. MMCB does not collect information on borrowers’ net worth, assets or bank deposit amounts.

With this information, the bureau produces credit reports on individuals or corporates to help financial institutions make better lending decisions and lower the risk of defaults. Borrowers, in turn, should expect faster and more competitive services from lenders. MMCB, which received its license from the CBM in May 2018, currently has over 220 potential members including national and local banks, foreign bank branches, and non-bank financial institutions. It plans to widen membership and expand its product and service offerings to include credit scores and data analytics reports over the next two years.

The bureau is a 60:40 joint venture between MB Investment, a company formed by members of the Myanmar Banks Association, and Singapore-listed Credit Bureau Asia’s wholly-owned subsidiary NSP Asia Investment Holding. Credit Bureau Asia, which also operates the sole credit bureau in Cambodia, made its debut on the Singapore Exchange in December 2 at 93 cents per share. The company’s shares closed at $1.17 each before the announcement.

Source: Myanmar Times

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Announcement on Extension of the Precautionary Restriction Measures Relating to Control of the COVID-19 Pandemic until 31 January 2021

by COVID

1. With a view to the further strengthening of measures to contain the spread of the COVID-19 pandemic, the Ministry of Foreign Affairs of the Republic of the Union of Myanmar has issued the following announcements regarding temporary entry restrictions for visitors from all countries. All those restrictions were extended until 31 December 2020 by the Ministry’s announcement dated 15 December 2020.
(a) Announcement dated 15 March 2020 regarding precautionary measures for all travellers visiting Myanmar;
(b) Announcement dated 20 March 2020 regarding additional precautionary measures for travellers visiting Myanmar and temporary suspension of issuance of visa on Arrival and e-visa;
(c) Announcement dated 24 March 2020 regarding additional precautionary measures for travellers from all countries visiting Myanmar;
(d) Announcement dated 28 March 2020 regarding temporary suspension of all types of visas (including social visit visas) and visa exemption services.


2. In order to continue its effective response measures to protect the population of the country from the risks of importation and spread of the COVID-19, the Government of the Republic of the Union of Myanmar has decided to extend the afore-mentioned entry restriction measures until 31 January 2021.


3. In case of urgent official missions or compelling reasons, foreign nationals, including diplomats and United Nations officials, who wish to travel to Myanmar by available relief or special flights, may contact the nearest Myanmar Mission for possible exception with regard to certain visa restrictions. However, all visitors must abide by existing directives issued by the Ministry of Health and Sports relating to the prevention and control of the COVID-19 pandemic.

Ministry of Foreign Affairs
Nay Pyi Taw
Dated. 30 December 2020

Source: The Global New Light of Myanmar

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Republic of the Union of Myanmar Ministry of Planning, Finance and Industry Announcement 8/2020

by COVID

Republic of the Union of Myanmar
Ministry of Planning,
Finance and Industry
Announcement 8/2020

1st Waning of Nadaw, 1382 ME
30 December 2020
Nay Pyi Taw

1. For ensuring strict adherence to COVID-19 preventive rules among the public in accordance with the National-Level Central Committee on Prevention, Control and Treatment of Coronavirus Disease 2019 (COVID-19), and not to occur crowds of taxpayers during the period closer to the deadline for filing tax declaration, the respective deadlines will be extended.
2. Therefore, the tax declarations for the following deadlines are extended until 31 January 2021.
(a) Income tax declaration, annual salary report and annual commercial tax declaration to be filed for 2019-2020 Financial Year
(b) Quarterly declaration for Specific Goods Tax from 1-10-2020 to 31-12-2020

Ministry of Planning, Finance and Industry

Source: The Global New Light of Myanmar

MOPFI-small-scaled

Republic of the Union of Myanmar Ministry of Planning, Finance and Industry Announcement 7/2020

by COVID

Republic of the Union of Myanmar
Ministry of Planning, Finance and Industry
Announcement 7/2020

1st Waning of Nadaw, 1382 ME
30 December 2020
Nay Pyi Taw
Notification to Taxpayers

1. The period for deduction of tax relief according to the Union Taxation Law 2019 for the incomes exempted from the income was announced up to 30 September 2020 at the latest. Due to this announcement, the taxpayers have crowded into branches of Myanma Economic Bank during the COVID-19 outbreak to be able to enjoy the deduction of tax relief in line with the notice ‘Payment to the bank not later than 30-9-2020’ on the tax payment challan form. The Ministry of Planning, Finance and Industry has issued Announcement 4/2020 for the extension of tax payment to 30 December 2020, not to occur crowds at these
places.
2. For proper enforcement of the COVID-19 preventive rules among the public, the tax payment period included in the above-mentioned paragraph (1) will be extended to 31 January 2021.

Ministry of Planning, Finance and Industry

Source: The Global New Light of Myanmar

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Republic of the Union of Myanmar Ministry of Planning, Finance and Industry Notification 6/2020

by COVID

Republic of the Union of Myanmar
Ministry of Planning, Finance and Industry
Notification 6/2020

1st Waning of Nadaw, 1382 ME
30 December 2020
Nay Pyi Taw

1. In accordance with the directives of the National-Level Central Committee on Prevention, Control and Treatment of Coronavirus Disease 2019 (COVID-19), the Ministry of Planning, Finance and Industry will continue the government’s tax relaxation scheme until the end of January 2021.
2. Regarding income taxes levied once in three months and monthly commercial taxes to be paid by CMP businesses, hotel and tourism businesses, and small and medium-sized enterprises for 2019-2020 Financial Year and 2020-2021 Financial Year—
(a) The income taxes for the second quarter of the 2019-2020 Financial Year (which will end on 31 March 2020), for the third quarter of the Financial Year (which will end on 30 June 2020), and for the fourth quarter of the Financial Year (which will end on 30 September 2020) and for the first quarter of the 2020-2021 financial year (which wil end on 31 December 2020) shall be paid until 31 January 2021.
(b) The monthly commercial taxes for the period from 31 March in 2019-2020 Financial Year to 31 December in 2020- 2021 Financial Year shall be paid until 31 January 2021.
3. The 2 per cent advance income tax in export items approved by the Union Government will be exempted until 31 January 2021.

Source: The Global New Light of Myanmar

14-12-18 - PHOTO:- Steve Tickner Emerald shoe factory workers strike

Myanmar manufacturing sector hit by new lockdown measures

by MANUFACTURING

Manufacturing in Myanmar was hit hard in September by a range of new lockdown measures introduced to fight a surge in coronavirus cases, according to the latest Purchasing Manger Index (PMI) survey data from IHS Markit. The measures, which includes instructions for factories to shut down for two weeks and employees not listed under an essential services list to work from home, has reversed the beginnings of a recovery in manufacturing.

The Myanmar PMI index fell to 35.9 in September from 53.2 in August and 51.7 in July. The index varies between 0 and 100, with a reading above 50 indicating an overall increase in purchasing activity compared to the previous month. A score below 50 indicates an overall decrease. The impact has so far been less severe that the record deterioration in business conditions seen in April.

Still, four of the five components that make up the PMI- such as purchasing activity, output and new orders – had negative directional influences in September, with the exception being suppliers’ delivery times. Manufacturing production suffered a severe decline in September with factories temporarily closed in key regions like Yangon and Mandalay.

Domestic demand faltered amid the introduction of new restrictions, while international demand was tepid as well, with managers reporting lower demand from Asian markets including India, Thailand, Vietnam and Qatar. With many factories temporarily closed in September, the overall level of employment in the sector also fell sharply.

Source: Myanmar Times