By Nan Lwin 25 July 2020
YANGON—Regardless of the Myanmar authorities’s efforts to ease the financial affect of COVID-19, the nation’s economic system has remained in a major slowdown. This week, the Myanmar Commerce Promotion Group (Myantrade) mentioned in its newest report that 76 p.c of export corporations have been effected by COVID-19 and almost half of them are anticipated to face a major decline in orders from aboard in coming months.
The Myanmar Funding Fee (MIC) additionally mentioned that round 10 enterprises notified the fee final week that they’re closing or have already closed because of the results of COVID-19. Moreover, commerce knowledge exhibits that Myanmar’s exports to China within the first 10 months of this fiscal yr dropped by greater than US$200 million in comparison with the identical interval from final yr. Moreover, the federal government additionally urged corporations to pay taxes on-line to curb the additional unfold of COVID-19.
Myanmar’s export corporations hit by COVID-19
A Myantrade survey on the impacts of COVID-19 on exports discovered that 76 p.c of export corporations have been hit by the pandemic and greater than half of the businesses within the survey are dealing with a decline in orders of 50 p.c or extra.
Myantrade surveyed 226 export corporations within the nation. The Myantrade staff is liable for commerce promotion and falls beneath the Ministry of Commerce.
Of the 76 p.c of export corporations affected by COVID-19, 30 p.c have been severely affected and the remaining 46 p.c have been reasonably affected, the report mentioned.
The survey discovered that 19 p.c of corporations are experiencing a decline in orders by as much as 20 p.c, whereas 36 p.c of respondents mentioned they haven’t acquired any orders from their patrons for the following three months.
Based on the survey, greater than 50 p.c of corporations noticed a drop in orders, with 18 p.c seeing their patrons cancel orders. Greater than half of export corporations expect an extra drop in orders within the subsequent three months, the survey mentioned.
Corporations to shut down attributable to COVID-19
MIC acquired one other spherical of notifications of enterprise closure final week as corporations battle with the consequences of COVID-19, in keeping with the Directorate of Funding and Firm Administration (DICA), the federal government funding company. The MIC mentioned that it acquired round 10 notifications of closure however that the method was nonetheless ongoing and a precise quantity wasn’t accessible but.
However DICA didn’t point out whether or not the businesses that filed for closure are owned by native or overseas buyers, and never specify the varieties of companies.
MIC mentioned round 100 cut-make-pack (CMP) garment enterprises and 63 different companies reported closures between Jan. 1 and June 21.
Whereas MIC tracks comparatively massive enterprises, its knowledge doesn’t embody small companies. The Ministry of Labor, Immigration and Inhabitants mentioned in June that greater than 140,000 locally-based employees have misplaced their jobs because of the closure of 5,658 micro, small and medium-sized enterprises and 270 massive factories, outlets and eating places.
Myanmar sees vital decline in exports to China
The Ministry of Commerce mentioned Myanmar’s earnings from exports to China dropped by greater than US$200 million within the first 10 months of the present fiscal yr (2019-2020) in contrast with the identical interval within the earlier fiscal yr (2018-2019).
The ministry mentioned export earnings declined because of the Chinese language authorities’s tightening of border management guidelines between the 2 nations to curb the additional unfold of the pandemic.
Myanmar’s exports to China accounted for over US$Three billion in commerce through the Muse, Chinshwehaw, Kanpiketi and Lweje border gates from Oct. 1, 2019 to July 10. Final fiscal yr, Myanmar exported US$3.29 billion worth of products to China, in keeping with the Ministry of Commerce.
Authorities urges corporations to make use of on-line tax cost system
The federal government’s Inner Income Division (IRD) mentioned Myanmar corporations ought to use a digital cost system to pay taxes on-line ranging from Oct. 1.
The division introduced that it has been growing on-line cost programs for each corporations and particular person tax payers to permit tax assortment to proceed whereas adhering to social distancing guidelines, in an effort to curb the additional unfold of COVID-19.
The IRD mentioned tax payers pays taxes utilizing on-line companies from native non-public banks reminiscent of Kanbawza Bank, Ayeyarwady Bank, Co-operative Bank, United Amara Bank and others.
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