Myanmar Monthly Business Brief, October 2025

Economy

Loan applications open for rehabilitation in Mandalay quake-hit areas

The powerful Mandalay earthquake that struck on 28 March 2025 caused damage to the homes, factories, and businesses of citizens, including civil servants, in Nay Pyi Taw Union Territory, Mandalay Region, Sagaing Region, Magway Region, Bago Region, and northeastern Shan State.

Low-interest loans with terms of three to five years will be offered using state funds to help rebuild earthquake-affected areas.

• Home and Building Reconstruction Loans (three per cent interest rate)
• Working Capital, Equipment, Water, Electricity, Solar, and Investment Loans for Micro, Small, and Medium Enterprises (MSMEs) (five per cent interest rate)
• Large Factory Renovation and Operational Loans (seven per cent interest rate)
• Temporary Loans for Construction Firms Building State- Owned Infrastructure (seven per cent interest rate)

The banks and non-bank financial institutions participating in the loan programme are AYA Bank PCL, UAB Bank PCL, CB Bank PCL, Ayeyawady Farmers Development Bank, Yoma Bank, Construction, Housing & Infrastructure Development Bank, Myanmar Citizens Bank, Kanbawza Bank, Myawady Bank, Innwa Bank, Best Merchant Finance Co Ltd, and Zega Finance Co Ltd. CBM announced that businesses and individuals in earthquake-affected areas can now apply for loans through any of the participating banks and non-bank financial institutions.

Worldbox Business Intelligence Risk Rating – October 2025

Worldbox Business Intelligence Risk Rating released in October 2025. The risk assessment of a country is made up of four components. Each component is scored out of 10 with 1 being the highest risk and 10 the lowest. Ratings for Myanmar are;

• Overall Risk Score 12/40 (Negative)
• Political risk: Negative 3/10
• Economic risk: Negative 3/10
• Commercial risk: Negative 3/10
• Technology risk: Negative 3/10

ESG Risk: 3/10 (Negative) Environmental, social and governance (ESG) issues are becoming increasingly important to companies, investors and consumers in Southeast Asia.

Finance

Kyat Shows V CBM Interventions; Gold and Fuel Prices Fluctuate

The kyat hovered around K4,060 per US dollar at the end of October, reflecting continued depreciation pressure. The Central Bank of Myanmar (CBM) intervened throughout the month, selling millions of US dollars, yuan, and baht to stabilize the exchange rate and support imports of essential goods. CBM injected US dollars over 130 million and 100 million baht in October, into the edible oil, fuel, and CMP sectors.

Gold prices were increasing throughout the month, closing at 8.3 million kyats per tickle for buying and 8.4 million kyats for selling. Domestic fuel prices showed a decrease in October.

CBM moves to absorb excess liquidity

The Central Bank of Myanmar (CBM) announced on 3 October 2025 at the monetary policy committee meeting that it would withdraw excess liquidity in an economy by increasing the Interest on Average Excess Reserve (IOER) paid to the banks for deposits in Myanmar Kyat beyond the 28 days minimum reserve requirement and setting the IOER interest rate based on the one-month (average) interest rate in the monetary market. Strong money circulation in the economic system led to higher interest rates in September 2024. Increased digital consumption stimulated rising deposits in banking operations. Consequently, CBM hiked the minimum reserve requirement ratio as well.

The meeting highlighted monitoring excess liquidity to ease potential inflationary pressure as the money supply is beyond expectations, and high-interest-rate issues arise. Monetary policies related to stabilizing and recovering the economy, supporting the State’s economic growth targets, reviewing macroeconomic conditions and not hiking interest rates, focusing on exchange rate stability and stipulation of minimum reserve requirement were discussed to tackle inflation. CBM’s move will control inflation and currency depreciation, maximize banks’ interest income and bring about banking sector stability and financial stability, as per CBM’s notification.

Manufacturing

Myanmar garment sector sees 9% export growth in H1 2025_2026FY

Myanmar’s garment export rose by nine per cent in the first half of the current financial year 2025-2026, from April to September, compared to that of the corresponding period last FY. Myanmar’s garment enterprises operate under the Cutting, Making, and Packaging model. European Union member countries, Japan, the Republic of Korea, the US and China place garment orders from Myanmar Myanmar’s top-earning sectors include garments and agricultural produce. The garment leads the export sector. Myanmar’s garment sector plays a pivotal role in the economic development of the country, contributing to the country’s GDP to a certain extent. Myanmar’s manufacturing sector is largely concentrated in garments and textiles produced on the CMP basis. In addition to garments, manufacturing of electronic appliances, footwear, bags, wigs, lenses and cameras is also running under a CMP system. Myanmar Garment Manufacturing Association and other related institutions are exerting concerted efforts to transform from the CMP to a full production model in the country.

Energy

Myanmar, Russia to discuss plans to build oil refineries for distribution at home and abroad

According to the Ministry of Energy, Myanmar and Russia have discussed promising prospects for establishing and operating oil refineries in Myanmar, which would enable the distribution and sale of petroleum products not only domestically but also to countries in the region. The discussions were held between the Ministry of Energy of Myanmar and State-owned Gazprom International Limited and Zarubezhneft JSC of the Russian Federation.

A Myanmar delegation from the Ministry of Energy attended the 8th Russia Energy Week International Forum (REW) in Moscow of Russia from 15 to 17 October. Meanwhile, the Myanmar delegation held talks with General Director Mr Sergey Tumanov of Gazprom International Limited of Russia and General Director Mr Sergey Kudryashov of Zarubezhneft JSC Company of Russia separately.

They discussed investment and cooperation in the exploration, drilling, and production sectors of oil and natural gas, the potential opportunities for conducting energy trading using Myanmar’s deep seaports, and the promising prospects of establishing oil refineries in Myanmar to distribute and sell petroleum products not only domestically but also to countries in the region.

PTTEP, MOGE to jointly explore, drill Mottama offshore gas blocks

At the offshore natural gas blocks M 5 and M 6, located off the coast of Mottama, Thailand’s state-owned oil and energy company, PTTEP International, will jointly conduct oil and natural gas exploration and drilling operations in collaboration with the Myanma Oil and Gas Enterprise (MOGE). The drilling operations at the offshore natural gas Blocks M 5 and M 6 are scheduled to take place from 1 November this year until 30 March 2027. Furthermore, PTTEP is set to carry out the installation of four new platforms and underwater pipeline connection works at the offshore block M 9, also located off the Mottama coast. PTTEP International Limited and the Ministry of Energy (MOE) will soon sign the necessary agreements to enable the implementation of new offshore projects. Meanwhile, PTTEP and the MOE will continue joint exploration and drilling operations for new wells within the Yadana and Zawtika project areas, where both parties are already collaborating.

Tourism

Hpa-an City wins ASEAN Environmentally Sustainable Cities Award

Hpa-an City in Kayin State has won the 6th ASEAN Environmentally Sustainable Cities Award for 2025, an award presented every three years since 2008. The ASEAN Environmentally Sustainable Cities Award, selected by the ASEAN Working Group on Environmentally Sustainable Cities (AWGESC), was presented at a ceremony held on 3 October in Langkawi, Malaysia.

The Kayin State government has announced that it will work together with government organizations, departments, and local communities to sustainably develop the environment of Hpa-an, the capital of Kayin State and winner of the ASEAN Environmentally Sustainable Cities Award. The efforts will focus on ensuring clean water, clean air, and clean land, preserving biodiversity, keeping the land green for future generations, and protecting the natural ecosystems in the state’s tourist areas. In addition, the Myanmar Tourism Federation is promoting ecotourism activities in Kayin State, which offers many attractions that appeal to both domestic and international tourists.