The Myanmar Government will accelerate development of hydrocarbon and renewable energy even as it repairs power lines damaged by terrorists while seeking to increase foreign investments despite the threat of fresh economic sanctions, the Ministry of Information (MOI) and Ministry of Investment and Foreign Economic Relations (MIFER) announced today.
MOI Minister Mr Maung Maung Ohn and MIFER Minister Mr Aung Naing Oo issued the joint statement in response to recent media reports about energy shortages in the country and exits of some foreign energy companies, and fresh sanctions against Myanmar announced in recent months.
Addressing Energy Shortages in Myanmar
The recent temporary shortage of power was caused by a surge of global liquefied natural gas (LNG) prices, exacerbated by the Russia-Ukraine conflict, a weaker kyat currency as well as terrorist actions linked to the People’s Defensive Force (PDF). Apart from advocating a boycott of utility payments since 2021, PDF terrorists blew up power lines from the Lawpita hydroelectric plant in Kayah State. These actions contributed to outages which caused hardship to ordinary citizens and small businesses in particular.
However, despite earlier civil unrest, the country has largely achieved national stability since the second half of 2021. Myanmar Government, under the direction of the State Administration Council (SAC) that was formed on 2 February 2021, is focusing efforts on various mitigating actions regarding the country’s energy situation:
i) With the relative stabilization of global energy prices, the Government is seeking to increase use of natural gas for local power generation.
ii) The Government will step up repair of power infrastructure damaged by terrorists and increase security measures.
iii) It will accelerate power generation in the country from oil and gas sources through new investments, partnerships and actions such as conversion to use of existing facilities:
– the new Shwe Gas Pipeline was completed on 18 March 2022 and will generate about 330 MW of regular power.
– Conversion of some fertilizer plants (which use gas as feedstock) for immediate generation of 30 MW of electricity and accelerating works on other gas-fired power generators or waste-heat projects. A total of about 100 MW of electricity has been generated in Kyaukphyu using 20 million cubic feet of gas currently. After pipeline maintenance, this will expand to 30 million cubic feet per day and generate 195 MW.
iv) Major energy projects with China
As its largest neighbour and economic partner, China will play an increasingly important role in energy-related developments in Myanmar.
– With regard to the China-Myanmar pipeline project involving China National Petroleum Corporation (CNPC), the gas pipeline portion was completed at the end of 2013 and the oil pipeline portion was completed in April 2017. The project, which also includes a crude oil terminal, is CNPC’s largest investment in Myanmar, and a centerpiece of China’s Belt and Road Initiative in the country.
– 3 Chinese companies – Union Resources and Engineering Company (41%), Yunnan Energy Investment (39%) and Zhefu Holding Group (1%) – are partnering Myanmar’s -Supreme Group (19%) to develop the 1,390MW Mee Lin Gyaing Project. This facility in Ayeyarwady region involves a LNG-fired power plant, a LNG terminal, a high voltage transmission line and gas pipelines to Yangon. It has been approved by the Myanmar Investment Commission. Currently in the early stages of design and construction, it is expected to start commercial operation in 2027.
Myanmar Government is also proposing to include this high-priority energy project – with an estimated investment value of USD 2.5 billion – in the list of early harvest projects of the China-Myanmar Economic Corridor (CMEC) to enhance bilateral cooperation so as to accelerate its progress.
v) Increase investments in renewable energy
– Solar Energy: More than half of the 40-MW Letpanhla and 30-MW Nyaungbin Gyi solar projects has been completed. To achieve national renewable energy goals, 13 solar power projects which will generate 370 MW have been launched.
While three more solar power projects which will generate 390-megawatt are also planned. Special efforts are being made to promote floating solar projects, rooftop solar projects, and small and medium-sized projects wherever possible.
Tenders are also being called for 18 solar power projects that can generate 635 MW. These are in addition to ongoing negotiations for 11 solar projects which will generate 300 MW that have been invited. Negotiations are underway to sign an agreement for one of them.
– Hydroelectric Power – With more than 60 hydropower dams, hydroelectricity is a key source of energy in the country. The Government is negotiating to purchase about 120 MW of electricity from the Tapin (1) hydropower project soon. The Government will emphasise proper environmental and social impact assessments before approval. Project designs must address such impact and communicate plans and benefits to the relevant communities in order to allay future concerns.
Myanmar plans to achieve national electrification by 2030 and generate 9% of electricity from renewable sources such as hydro and solar power.
Reported Exits of Foreign Oil and Gas Companies
The Ministers said the withdrawal by France’s TotalEnergies from the Yadana field and a related gas transportation project will be effective on 20 July 2022. The former’s 31.24% stake has been allocated proportionately to the remaining partners in the joint venture.
After the withdrawal of TotalEnergies, Thailand’s PTTEP International Limited (PTTEPI) will hold 37.0842% participating interest while Unocal Myanmar Offshore Company Limited, a subsidiary of Chevron Corporation (Chevron) of the United States, will hold 41.1016%, the highest participating interest in the project. Since the first shipment in 1996 about 70% of production from this project, or about 768 million standard cubic feet per day currently, has been sold to Thailand with the rest designated for domestic power generation.
“As this is a change of ownership, operations are not affected. The Yadana field has the largest known Myanmar offshore hydrocarbon reserves. However, production there has declined since end-2021 following 20 years of post-plateau output. Production at this field to date has reached 85% of the recoverable reserves,” the Ministers said. Total Energies is not seeking compensation for the withdrawal.
The Ministers said that while Chevron had stated it would exit investments from Myanmar, the Government has to date not received any formal notification from the company.
A third foreign energy company, Woodside Petroleum Ltd of Australia, has recently withdrawn from A6 Natural Gas Project in Rakhine State. Its stake has been taken over by its project partner the MPRL E&P Group of Companies. Operations are also not affected.
Myanmar’s Energy Sector Remains Attractive
Despite being one of the world’s oldest oil producers (exports started in 1853), Myanmar’s upstream sector is still in its infancy due to sanctions, opaque regulatory policy and insufficient investment.
“Although, proven energy reserves are still relatively modest, unofficial estimates are extremely promising. Such fields with potential which are also in proximity to large demand centres in Thailand and China have attracted the interest of several major players. Hence, the Government continues to speed up its reform and has held a number of successful international bids for such hydrocarbon fields,” the Ministers said.
Response to Fresh Economic Sanctions Against Myanmar
The Ministers said that external pressure and fresh economic sanctions by several Western countries in recent months may have raised concerns among some foreign investors.
“Economic sanctions may have more negative impact on private sectors than on the Government. Domestic and foreign businessmen and their enterprises, local workers, suppliers and consumers end up suffering the most.
Some sizeable projects that had been approved have commenced construction. Due to the economic sanctions, promoters of some of these projects are now facing obstacles in transferring foreign currency. This has affected progress of the projects.
Should these projects be terminated due to sanctions their investors must repay tax exemptions they enjoyed on top of project costs incurred. Otherwise, their investments will remain in the pending state. Hence, investors may end up leaving Myanmar not because of an unfavourable investment environment but because of external pressures.
Myanmar is committed to providing a secure, accessible and conducive investment environment. We do not wish to see investment withdrawals.
Although the international community publicly discourages economic cooperation with Myanmar, we continue to attract foreign investments. Many of our foreign partners choose to work quietly with us, away from the glare of external publicity, fully recognizing Myanmar’s economic potential as well as its unique challenges,” the Ministers said.
Energy Sector Remains Priority For Total Investments
The Ministers also gave an update on investments in Myanmar in the last 2 fiscal years. During fiscal 2020-2021 (12 months ended October) and fiscal 2021-2022 (interim budget of 6 months ended March) a total of 82 projects in 12 sectors with investments totaling USD 4.32 billion were approved (USD 3.79 billion in fiscal 2020-2021 and USD 530.775 million fiscal 2021-2022.)
Manufacturing accounted for most projects among 12 sectors in fiscal 2020-2021. However, the Power sector received substantially higher amount of total approved investment of USD 3.12 billion for 6 projects during this period, underscoring the attractiveness of the sector.
Foreign Investments
Most of the countries investing in Myanmar are Singapore, China, Hong Kong, Thailand and South Korea. In fiscal year 2020-2021, a total of 15 projects were from China, and 14 projects were from Singapore.
In 2021-2022 FY, there are 18 projects from China and 6 were from Hong Kong.
Domestic Investments
In the last 2 fiscal years, a total of 93 domestic investment projects (61 in fiscal 2020-2021 and 32 in fiscal 2021-2022) in 12 sectors valued at 2,248.7 billion kyat (1,171.8 billion kyat in fiscal 2020-2021 and 1,076.9 billion kyat in fiscal 2021-2022, respectively) were approved.
A total of 50 projects were from the Manufacturing sector, which is the leading domestic investment category, followed by the Services sector which recorded 14 approved projects while Hotel and Tourism sector was third with 11 projects.
Issued by Ministry of Information and Ministry of Investment and Foreign Economic Relations, Union Government of Myanmar.
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Tag: Ministry of Information Union Government of Myanmar
Myanmar Announces Direct Border Trade Currency Settlement with Thailand; Plans Similar Non-Dollar Convertibility with India in Near Future
Myanmar to Implement Commitments under ASEAN Economic Pillar
The Myanmar Government has agreed to accept the Thai baht as an official currency for settling border trade starting this month. Thailand is the second country after China to permit its national currency to be exchangeable with the Myanmar kyat for border trade activities.
Myanmar’s Minister of Information (MOI) Mr Maung Maung Ohn and Minister of Investments and Foreign Economic Relations (MIFER) Mr Aung Naing Oo said in a joint statement today that the kyat-baht initiative is a significant development as Thailand is Myanmar’s second largest trading partner after China. The Myanmar Government intends to initiate similar currency convertibility for the Indian rupee for trade along the border it shares with India.
Myanmar and China commenced kyat-renminbi settlement for border trades in January 2022. The increasing use of non-US dollar direct currency settlement for border trade underscores the strong bilateral relations that Myanmar enjoys with its neighbours.
The kyat-baht settlement arrangement was endorsed by an official notification and guidelines issued by the Central Bank earlier this month. All settlements will be conducted online as opposed to cash transactions previously.
In Fiscal Year (FY) 2020-2021 (November-to-October) border trade along five checkpoints of the Myanmar-Thai border – Tachileik, Myawady, Kawthoung, Myeik and Hteekhee, – amounted to USD4.3 billion equivalent, up from USD3.9 billion in FY 2019-2020.
Starting this month merchants along the Myanmar-Thai border who are registered with the Myanmar Economic Bank can conduct trade based on the kyat-baht exchange rate announced daily by the Central Bank of Myanmar.
In FY 2020-2021 Thailand accounted for 17.61% of Myanmar’s total trade which rose to USD5.3 billion from USD5.2 billion in FY2019-2020. Myanmar’s main exports to Thailand include natural gas, base metals, electronic goods, pulses, and garments. In turn, Myanmar imports from Thailand machinery, appliances transport equipment and manufactured goods.
“Myanmar’s immediate neighbours account for up to 70% of the country’s total trade volume. Direct non-dollar currency settlements will help to broaden and facilitate bilateral trade, flow of goods and other forms of payment and settlement with the respective countries.
“As Myanmar gradually adopts full bilateral currency swap arrangements with various countries, regional economic cooperation will also be strengthened. By reducing dependence on the US dollar, we will mitigate the risk of sudden exchange rate swings due to external geopolitical factors. Myanmar can also reduce physical money in circulation as more trade transactions migrate online. If we can succeed with such arrangements with our immediate neighbours, Myanmar can gradually reduce the dependence on the US dollar for up to 70% of Myanmar’s national trade volume,” the two Ministers added.
The currency arrangements will also help Myanmar reduce inflation caused by the rise of the U.S. dollar, while alleviating concerns of currency shortage within the country. The arrangements will also contribute to the economic recovery of the country which – despite rising energy prices – expects to record modest GDP growth in the current fiscal year ending October 2022.
The currency shortage and weaker kyat last year was stoked by economic sabotage by the opponents including so-called People’s Defensive Force (PDF) which tried to sow distrust in the local banking and financial system. Supported by foreign elements, the outlawed PDF also launched a terror campaign which caused the lives of many Government servants, security forces, and damage to public infrastructure.
The disturbances commenced after the 1 February 2021 Proclamation to declare a state of Emergency in Myanmar. Since the second half of 2021, the country has achieved national stability under the State Administration Council (SAC) which intends to call for a multi-party general election to be held by August 2023.
ASEAN Economic Ministers’ Meeting
Myanmar’s Minister of Foreign Investments and Economic Relations will represent the country at the March 16-17 ASEAN Economic Ministers’ Retreat. “The Ministry will update other ASEAN members on the economic impact on Myanmar caused by two recent crisis situations – the COVID-19 pandemic and civil disobedience,” said MIFER Minister Aung Naing Oo.
The Ministry will also update the significant efforts Myanmar is taking to develop the small and medium enterprises especially in the agriculture and manufacturing sectors through provision of credit and measures to facilitate the business environment despite the two major challenges.
“While the pressure on the financial system has eased and the kyat has stabilized due to policies implemented by the SAC, the Russia-Ukraine conflict has caused domestic energy prices to spike.
Due to the level of development of the country and recent crisis situations, Myanmar has probably faced more challenges than most other ASEAN members in the past year or so,” they said.
Minister Aung Naing Oo also said:
“Myanmar has made every effort to fulfill its obligations under the four pillars of the ASEAN Economic Community.
Myanmar is one of the earliest signatory states to deposit its instrument of ratification of the Regional Comprehensive Economic Partnership (RCEP) in accordance with the RCEP Agreement. However, Myanmar’s instrument of ratification has been politicised by some RCEP participating countries. Likewise, Myanmar’s ratification letter for Protocol to Implement the Tenth Package of Commitments under the ASEAN Framework Agreement on Services has also faced the same problem.
ASEAN’s approaches to creating a much stronger Southeast Asia, narrowing the development gap within ASEAN, and strengthening economic resilience cannot be fulfilled if Myanmar is excluded. This is not consistent with the ASEAN Charter. Myanmar believes that such actions can affect ASEAN’s centrality.
For all member countries to benefit from economic integration, an all-inclusive manner is needed in ASEAN. No country should lag in regional economic integration. Sadly, some of ASEAN’s directions and actions appear mismatched on the ground.
Whatever the challenges, Myanmar will actively continue to fulfill the commitments and obligations as an ASEAN member and as a responsible global citizen.”
Issued by Ministry of Information and Ministry of Investment and Foreign Economic Relations, Union Government of Myanmar.
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Myanmar Government Approved USD 3.82 Billion in Foreign Investment and USD 651 Million in Domestic Investment in First Year of State Administration Council
The Myanmar Government said today it has approved USD 3.82 billion equivalent* in foreign investments and USD 651 million equivalent in domestic investments in the first year since the State Administration Council (SAC) took office. The investment commitments underscore confidence in the country’s economic potential amid a return to national stability and efforts to increase vaccination rates to contain the COVID-19 pandemic.
The Ministry of Information (MOI) and the Ministry of Investment and Foreign Economic Relations (MIFER) released the latest investment figures for the country for the period between 1 February 2021 – when a Proclamation was issued – and 20 January 2022.
The SAC was formed on 2 February 2021, a day after the Proclamation was issued after the failure to settle the issue of voter list fraud and malpractices in the 8 November 2020 elections, and to postpone parliament sessions. A state of emergency was declared in accordance with Article 417 of the 2008 Constitution of Myanmar.
Despite destruction of public property, attacks on Government personnel and attempts to sabotage the domestic economy by the so-called People’s Defense Force – with clear support from foreign elements – the SAC had largely restored national stability by the second half of 2021.
Myanmar faced a second crisis, a health pandemic that arose from the outbreak that was first detected in the country in March 2020. However, due to intense efforts to contain COVID-19, schools, universities have reopened, and most commercial activities have resumed in recent months with the vaccination of at least 60% the country’s population (above 18 years) to date.
The MOI and MIFER said among the 50 domestic (citizens’) investments approved in the past year, seven were for projects in the services sector with investment value of USD 427.34 million equivalent and 29 were for manufacturing projects with investment value of USD 74.58 million equivalent. The mining, power and construction sectors also attracted sizeable citizens’ investments during this period.
Foreign investments approved in the past year included a USD 2.5 billion project to construct a liquefied natural gas (LNG) power plant, the two Ministers said.
The People’s Republic of China (PRC), apart from being the largest trading partner of Myanmar, is the largest foreign investor in the country. Among the non-PRC foreign investments approved in the past year were one from Japan (USD 516.43 million), four from Singapore (totaling USD 442.20 million), two from Thailand (totaling USD 75.50 million) five from South Korea (totaling USD 66.17 million) and seven from Hong Kong (totaling USD 60.09 million).
The Government estimates that the foreign investments over the past year led to the creation of 25,383 new jobs while domestic investments added a further 11,879 new jobs, or a total of 37,262 jobs.
Myanmar Government is accelerating efforts to improve trade flows with and investments from countries such as Russia that, until recently, have not been among its leading economic partners. Prior to the pandemic, which curtailed business travel and activities, Myanmar-Russia bilateral trade had increased 30% in FY2019-2020 (November to October) compared to the year earlier.
Despite the challenges of the pandemic Myanmar and Russia are actively formulating a Bilateral Strategy for Development of Economic Cooperation. The latter has already led to a first virtual business matching session attended by dozens of business leaders from both countries last September. A second such virtual session will be held on 31 January 2022.
The two countries, which signed an Inter-Governmental Joint Commission for Trade and Economic Cooperation in August 2014, plan to hold its third Joint Commission meeting, physically, in Nay Pyi Taw in the near future.
Russian corporations have invested USD 94 million in Myanmar, mostly in the oil and gas sector, and the country currently ranks 22nd out of 52 foreign investors. Myanmar Government will support the extension of Russian investment interest to sectors such as mineral processing, solar energy, railway and ICT, aviation, automobiles and tourism.
“Economic recovery is a major priority as the country recovers from two crises and prepares for multi-party elections to be held by August 2023,” said MOI Minister Mr. Maung Maung Ohn and MIFER Minister Mr. Aung Naing Oo in their joint statement.
“Due to good weather, Government financial support such as concessionary loans, and the relatively low impact of the pandemic compared to other sectors, the agriculture, fisheries and livestock sectors are reporting healthy growth. As workers return to workplaces in the past few months, the influx of new domestic and foreign investments will also contribute to job creation,” they said.
These factors along with national stability and improved vaccination rates will help Myanmar register a modest economic recovery in 2021-2022 after a single-digit contraction of its Gross Domestic Product in 2020-2021 – which is less dire than forecasts of some international economists.
“While certain quarters of the international community publicly discourage economic cooperation with Myanmar, the country continues to record substantial trading volume as well as domestic and foreign investments. Many of our foreign partners choose to work quietly with us, fully recognizing Myanmar’s economic potential as well as its unique challenges,” the two Ministers said.
“We have shared with foreign partners our efforts to deal with economic sabotage in the form of attempts to boycott Government revenue, shake confidence in financial institutions and destabilise the kyat. Despite these challenges, our Ministries and Government departments have been working diligently away from public glare to increase trade and investment flows,” they added. “These efforts have clearly borne fruit and we seek to increase such activities domestically and with foreign partners.”
* All equivalents based on exchange rate of approximately USD1.0 to 1,771 kyat as at 26 January 2022.
Issued by Ministry of Information, Union Government of Myanmar
Please see https://www.moi.gov.mm/moi:eng/announcements/5962
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Myanmar Government to Re-Open Land Borders, Resume International Travel in Early 2022 After Achieving Vaccination Targets Amid Clear Signs of Economic Recovery
The Myanmar Government announced today it will reopen land border crossings with China and Thailand next month ahead of a planned resumption of international air travel by the end of the first quarter of 2022, as vaccination rates have improved significantly amid clear signs of economic recovery from the COVID-19 pandemic.
Minister of Information Mr Maung Maung Ohn said travel restrictions will be eased by January 2022 at Muse which borders Ruili city in China’s Yunnan Province and at the three Myanmar towns of Tachileik, Kawthaung and Htee Kee which border Thailand. Travel at border crossings with Laos, India and Bangladesh are currently permitted due to lower incidences of infection.
Status of COVID-19 Infection Rates, Deaths & Vaccinations
Between the first case of pandemic infection in the country on 23 March 2020 to 12 November 2021 (20 months) Myanmar’s Ministry of Health has recorded a total of 511,717 cases of infection and 18,899 deaths due to COVID-19.
In the week (to 12 November) a daily average of 919 new confirmed cases were detected with a positivity rate of 4.2% while 20 deaths were recorded – a fatality rate of 2.3%. These compare with 3,901 new confirmed cases (positivity rate of 30.8%) and 172 deaths (fatality rate of 8.1%) in the first week of August 2021. The numbers of new confirmed cases and deaths have fallen to 76.4 percent and 88.5 percent, respectively, over the comparative periods.
The Government continues to receive vaccines through donations and national procurement programmes. Most of the vaccines are from China.
As at 12 November 2021, the Health Ministry had administered at least one dose of vaccine each to 14.4 million citizens above the age of 18, or 42.5% of the population. This will increase to 50% of the population by end of 2021. To date more than 21 million doses of various vaccines have been administered. By April 2022 Myanmar would have sufficient vaccines to inoculate the entire population.
“Our priority is the health and well-being of each citizen. The vaccinations are being carried out without any discrimination, including of prisoners and members of ethnic armed organisations. However, some individuals who had been involved in civil disturbance activities are reluctant to register for vaccination, especially in major cities,” said Minister Mr Maung Maung Ohn.
Procedures To Prepare for Resumption of Air Travel in Q1 2022
With the fall in infection and fatality rates and the acceleration of the vaccination programme, the State Administration Council is accelerating resumption of social and economic activity to restore national stability following the challenges of the pandemic and the internal social unrest.
To prepare to resume international air travel, six Government ministries are coordinating efforts to standardise testing and safety procedures such as social distancing, contact tracing and quarantine as well as vaccination status certification, the Minister said.
“Air travel is important to facilitate the return of Myanmar citizens, expatriates, aid and development workers, and international business travel. We must ensure that hotels, transportation, health facilities, airports and airline operators are ready to meet the standard operating procedures. We will keep various embassies informed of progress,” he said.
“We are cautiously assessing infection rates abroad ahead of the European winter. Once our vaccination programme reaches targets and if global infection rates drop, we intend to resume international air travel in the first quarter of 2022,” he said.
“This will benefit not just tourism but also commercial activity and bilateral social, cultural and development activities and exchanges. In recent months we have received substantial foreign interest in investments and business opportunities. These parties are eager to travel to Myanmar to conclude transactions,” he added.
Re-Opening of Schools & Universities
With most students above 18 already vaccinated, the Ministry of Education has started to reopen schools. In the first phase that began 1 November 2021, all schools from Grade 1 to 11 (except those in 46 townships) – involving over 473,000 students – were reopened. About a quarter million tertiary students will resume studies next month when universities and colleges reopen.
Since the re-opening of schools there has not been any incident of pandemic infection or fatality. This is due to the vaccination programme and health procedures. As some teachers have not returned to work due to social disturbances and fear of their safety, nearly 7,000 new teachers and over new 3,700 tertiary educators have been appointed in recent months to make up for the shortfall.
Economic Recovery and Resumption of Social Activity
Despite clear evidence of economic sabotage and the effects of the pandemic, economic activity has largely restarted across most parts of the country with the onset of the dry season last month, the Minister said. The Myanmar Government has introduced emergency economic relief in the form of grants to farmers, and to the fisheries and livestock sectors. It has also extended credit to rice exporters and offered assistance to small and medium enterprises.
The Minister noted that the Myanmar currency has strengthened from as low as 2,500 kyat last month to about 1,800 kyat currently. This underscores the economic recovery and success of efforts to counter rumours about the currency. The Central Bank of Myanmar recently strengthened online transactions, introduced incentives and other measures to reduce regulatory red tape, and conducted regular dialogue with local banks to maintain trust.
“Myanmar is recovering from challenges of a health pandemic, an economic downturn and social and political disturbances. The vaccination programme and the economic recovery efforts are gaining momentum. However, the police and security forces must abide by the law and carry out the duties.
“Business confidence is returning especially in major cities where religious activities recently have all been well attended. The resumption of air travel will be an important catalyst for tourism, the return of foreign investments and international business activities,” Minister Maung Maung Ohn added.
– Ends –
Issued by Ministry of Information, Union Government of Myanmar
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Myanmar Government to Re-Open Schools, Revive Economy and Support Currency to Overcome ‘Triple Crisis Situations’ of Pandemic, Economic Slowdown and Issues of National Stability
The Myanmar Government announced today it would reopen schools from next month and take urgent measures to support its currency and accelerate economic recovery so as to restore national stability quickly amid an unprecedented ‘triple crisis’ situation in the country.
Myanmar is facing crises of pandemic infection, economic slowdown and national stability at the same time, a situation not shared by any other country in ASEAN or even Asia. Hence, even as the country pursues recovery, it looks forward to support from the international community, the Government said in a statement.
COVID-19 Update
Based on latest data from the Ministry of Health, as of 16 October 2021 Myanmar had recorded 486,851 COVID-19 cases and 18,329 fatalities deaths (most of whom were aged 45 to 75) since the first confirmed case of infection on 23 March 2020. Currently, the daily average COVID-19 positivity rate in Myanmar is 7.7%, which is lower than that of some ASEAN countries.
The first wave of the pandemic started in March 2020 and the second in August 2020. In the third wave that started in May 2021, a high incidence of the Delta variant has been behind the 343,533 confirmed cases and 15,113 deaths to date. The Ministry of Health is still responding to the third wave even though cases have declined since July 2021.
Currently, 113 townships – about a third of Myanmar’s total – are regarded as ‘high burden’ and are under the Stay-At-Home (SAH) programme. The Ministry of Health intends to ease restrictions gradually, after ascertaining there is no community transmission after lifting of SAH.
Update on Vaccination Status and Vaccines
As of 16 October 2021, 4.57 million people were fully vaccinated, while 6.65 million people have received one dose each. The cumulative vaccinated population is 11.22 million and cumulative vaccinations administered stood at 15.8 million doses. Myanmar has received 31.3 million doses of vaccines as of 17 October 2021. These include:
Ministry/Organization | Type | Country of Origin | Amount (doses)
Ministry of Health | Covishield | India | 4,500,000
Ministry of Health | Sinopharm | China | 21,300,000
Ministry of Health | Sinovac | China | 4,000,000
Ministry of Defense | Sinopharm, Covaxin, Spunik V | China, India, Russia | 802,800
Private sector | Sinopharm | China | 700,000
Grand total (National Figure) | 31,302,800
Over October and November 2021, 8.0 million doses of Sinopharm are scheduled to arrive through Myanmar Government procurement channels. The Ministry of Health is collaborating with GAVI COVAX Facility (“COVAX”) to receive 4.05 million doses of COVAX vaccines, and separately 2.2 million doses of SINOVAC vaccine. Ongoing discussions to receive Pfizer vaccine from the facility are also in progress.
Reopening of Schools and Colleges by November 2021
To accelerate recovery of social and economic activity, Myanmar Government has directed the Education Ministry to prioritise the re-opening of schools which had shut on 9 July 2021 due to the spread of COVID-19. While schools were reopened on 21 July, the Ministry again closed them on 27 August due to the third wave of the pandemic.
The Education Ministry will re-open schools from November 2021 by working with the Ministry of Health to vaccinate all remaining unvaccinated students (mostly between the ages of 12 and 17, by the end of this month). Over 2.2 million students have been vaccinated nationwide so far. All teachers have already been vaccinated. These vaccinations involved mostly the use of the SINOVAC vaccine, with two doses administered over an interval of 28 days.
To facilitate the reopening, schools will be ranked according to health and safety readiness in matters such as availability of disinfectants, sanitisers, personal protection equipment, thermometers, face masks and shields, and of hygiene facilities such as toilets, wash basins, wells and water purifiers.
In view of some reports of civil disobedience, security measures will also be introduced in schools to prevent disruption and ensure the safety of teachers and students.
“The reopening of schools is an urgent priority of our country. Vaccination and health protocols are a pre-requisite. Hence, teachers and students, including those between 12 and 18 years of age should get vaccinated. Myanmar Government encourages students to complete at least lower secondary education and endeavours to nurture more educated resources for the future development of Myanmar,” said Education Minister Dr. Nyunt Phay.
Reviving Business Confidence Within Myanmar and With International Community
The Myanmar Government has identified the main economic and financial challenges as confidence in banking and financial institutions, reviving employment and business activity, attracting and supporting foreign investors and economic partners, and ensuring stability of the kyat currency.
MIFER notes with concern the ongoing four-prong economic sabotage by opponents of the Government who continue to try to stir panic in the financial sector while openly declaring ‘war’ within Myanmar. These opponents appear to be supported by foreign elements.
It involves attempts at disrupting international economic and financial relations in order to halt existing development projects and delay disbursement of grants, aid and concessionary loans; deterring inflows of Foreign Direct Investment by projecting a negative image; boycotting payment of electricity bills and of Government lotteries to disrupt revenue collection; and spreading rumours to trigger a local banking and financial crisis.
Despite the sabotage, the Government will do its utmost to support the economy as well as all Myanmar people.
MIFER has stepped up dialogue with leaders of foreign chambers of commerce and accelerated international economic exchanges. A notable development has been the highly successful virtual Myanmar-Russia business matching seminar held last month.
“Myanmar Government has already implemented measures to ensure continuity in the agriculture sector, including farmers and those involved in livestock and fisheries sector. We have also extended soft loans/financial aid to Small and Medium Enterprises (SMEs),” said Minister Aung Naing Oo.
“We detect a great sense of urgency among local businesses to return to normalcy. Our priority is to restore confidence, create jobs and revive commercial activity. Despite the challenges, investor confidence is clearly increasing. We are also greatly encouraged by the positive response of Russian business groups who are very keen to forge bilateral economic activities,” he said.
Supporting The Myanmar Kyat
Central Bank notes with collective concern the recent weakness of the kyat. To restore confidence in the currency, the following actions have been or will be implemented:
- Encouraging and strengthening online banking payments
- Tax reduction and incentives (waiver or deferral of the payment of rental fees)
- Regulatory and other measures to streamline online transactions, reduce barriers
to business and regulatory red-tape, and improving commercial transparency - Issuing Central Bank’s notifications to have trust in the domestic banking system
- Regulating drawing limit from the banks.
National Security Matters
“Despite the efforts of Myanmar Government to restore political, social and economic stability amid the pandemic, those opposed to recovery have stepped up violence and disruption of the economy. The Government has a duty to ensure political and social stability and will exercise this duty with firmness and restraint at the same time even as it seeks to win investor confidence, and revive economic and social activity such as re-opening of schools and cinemas,” the Minister said.
Issued by Ministry of Information, Union Government of Myanmar
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