Monthly Business Brief, September 2024

Economy

Urgent management of relief and rehabilitation needed due to Typhoon Yagi

Heavy rains have scatterred across Myanmar due to impacts of Typhoon Yagi from the South China Sea and a depression from the western central and northwest of the Bay of Bengal during 10-13 September. Subsequently, water levels at dams, creeks and rivers are rising, causing flash floods in some regions and states.  The official data reported that the death toll in Myanmar from flooding and landslides sparked by Typhoon Yagi reached 433 on with 79 people missing. Over 800,000 people in 110 townships had been affected and more than 115,000 houses, 300 schools, over 1,300 roads and bridges and more than 316,000 hectares of farmland had been damaged.

The government put efforts for relief and rehabilitations for the victims and to regrow some 700,000 acres of flood-impacted cultivable lands. If these lands cannot be placed under paddy, these will be summer croplands. The government sets K 30 billion emergency aids and Well-wishers donated over K 40 billion in total to take rescue, relief and rehabilitation measures in flood-battered regions.  

Finance

US dollar and gold price stable

 Kyat is stronger to Kyat 4,800 against US dollar at the end of September due to continuous injection of the Central Bank of Myanmar (CBM). CBM sold nearly US$ 120 million with the online trading rate of K 3524/$ to those importing edible oil, fertilizer, pharmaceuticals, and medical devices on online trading platforms and also injected 5.5 million yuan and 46 million Thai Bahts in September.  CBM has injected US$ 190 million , 19 million yuan and 79 million Thai Bahts in August. Gold price was stable around K 6 million per tickle.

Trade

Pharma import licences tied to repatriated export earnings

Only when companies repatriated export earnings could they seek a pharmaceutical import licence commencing from 1 September according to Foreign Exchange Supervisory Committee. Applications for pharmaceutical import licence until August 2024 on the Trade Net 2.0 platform of the Trade Department will be deleted. According to the decision of the committee meeting (66/2024), repatriating export earnings is requisite in seeking a pharmaceutical import licence. Additionally, 116 pharmaceutical importing companies submitted 716 applications worth $103.822 million in October 2023 to the Myanmar Pharmaceutical and Medical Device Manufacturer Association. They are required to submit new ones after the association scrutinizes them. After the Foreign Exchange Scrutiny Committee gives them a green light, import licences will be granted. Applications for import license on other commodities need to submit 30% export earnings.

Investment

Suspension and withdrawal of Thai investments from Myanmar

According to the Nation Newspaper of Thailand, investments from Thailand gradually withdrew from Myanmar due to poor business environment. SCG Cement factory suspended operations and it expansion plan in last two years due to losses of machines and equipment in conflict area. Osotspa Plc (OSP) sold its investment worth Baht 136 million to its local partners- Myanmar Golden Eagle and Myanmar Golden Glass. TBPI Public Company Ltd which produced plastic and packaging products dissolved their establishment in Myanmar. Grand Prix International Plc and Index Creative Village which provided event service suspended their operations in Myanmar.

COVID

• In order to continuously control the infection of COVID-19, the rules and restrictions have been extended until the end of October 2024.