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CORONAVIRUS - The situation in Myanmar

1. General situation

The first COVID-19 case was confirmed on March 23, 2020. Since the number of the local transmission and positive cases are still increasing not only in metropolitan cities like Yangon but also in other Regions and States, the government urges people to stay at home as much as possible,  in social distancing, to wear the masks when going out. Business operations such as banks, food factories, shopping malls, restaurants are back in operations with close supervision and with prevention measures. However, there are still some offices who continue work from home policy, and some shops and restaurants are allowed only take-aways. The updated news can be checked at Myanmar’s Ministry of Health and Sports: https://www.mohs.gov.mm/.

Myanmar will be allowing international flights to resume operations on April 17 in accordance with the health and safety guidelines, according to the  Central Committee on Prevention, Control and Treatment of COVID-19 released on March 18.

2. Preventive measures

Myanmar government has been taking precautionary measures to control and limit the risk of the spreading the corona virus in Myanmar:

  • New tourist visa applications are currently suspended. In case of urgent official missions or compelling reasons, foreign nationals, including diplomats, United Nations officials and international investors who wish to travel to Myanmar by available relief or special flights, need to contact the nearest Myanmar Embassies for possible exception with regard to certain visa restrictions. At present Myanmar authorities can offer business visas to foreign nationals with a compelling case. 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.
  • There is a temporary suspension for all new e-Visa applications until 31st March 2022. It is needed to contact the nearest Myanmar Embassies for possible exception with regard to certain visa restrictions.
  • Arrivals to Myanmar must complete and submit a health declaration when they arrive. Arrivals must also provide evidence of a negative COVID-19 PCR test result. The test should be issued no more than 72 hours prior to the date of departure from the origin airport. Thermal screenings will be carried out on all arrivals by health officials at the airport. Arrivals found to have symptoms of COVID-19 during a screening will be immediately isolated and taken to a medical facility. Testing requirements ahead of entry to Myanmar are subject to change. Confirmation should be sought from the relevant Myanmar Embassy or Consulate well in advance of your departure.
  • Foreign nationals are required to go into hotel quarantine on arrival. During their hotel quarantine they will be tested multiple times, for which they will be charged. The exact timings and number of tests will depend on their vaccine status (10 days for vaccinated, 14 days for unvaccinated). Travelers will need to prove they have received their second vaccine dose at least 14 days prior to arrival, and present their vaccination record as proof.
  • If they test positive, they are required to go into state quarantine facilities. They will charged for the cost of their stay in state quarantine facilities. These rules change frequently and often at short notice.
  • The approved vaccines list are CoronaVac (Sinovac Biotech Ltd), AstraZeneca or Covishield (AstraZeneca & University of Oxford/ SK BioScience (Korea) / Siam BioScience / Serum Institute of India (SII)), Pfizer – BioNTech COVID-19 Vaccine or Comirnaty (Pfizer Inc & BioNTech)
  • You will be tested for COVID-19 by RT-PCR on day 1, day 3 and day 7 during the quarantine period, and will be required to pay for the testing fees. If you test positive for COVID-19, you will be immediately isolated and taken to a medical facility. Foreign nationals will be expected to pay the medical costs and other costs related to isolation and treatment in designated health facilities.
  • Since December 16, 2020, domestic flights were recommenced their operation along with the restrictions and procedures issued by Ministry of Health and Sports.
  • Public transport is still operating and the Express Bus Transportation reduce the number of passengers to half (i.e one person in two seats ratio).

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3. Exit strategy

  • According to the ministry of health published figures, the infection rate is still 3.28% on 16th March 2022. It is highly recommended to take vaccinations, wear masks, and avoid crowded places without enough ventilation, and follow physical distancing of 6 feet outside the home (including on public transport), and at work.
  • Health services operate as normally as possible and there is one fever-clinic that has their own guideline especially for COVID-19 from government in each townships in Yangon.

4. Economy

a. Economic impact

Myanmar’s ongoing political turmoil and a rapidly-rising third wave of COVID-19 cases are severely impacting an economy that had already been weakened by the pandemic in 2020. The economy is expected to contract around 18 percent in Myanmar’s 2021 Fiscal Year (Oct 2020-Sep 2021), with damaging implications for lives, livelihoods, poverty and future growth, according to the World Bank. An 18 percent contraction, coming on top of weak growth in FY2020, would mean that the country’s economy is around 30 percent smaller than it would have been in the absence of COVID-19 and the military takeover of February 2021.

Eurocham Myanmar conducted a survey to some European businesses in Myanmar to measurer by the impacts of COVID-19. More than 60% of the respondents claim that they are either significantly or moderately affected. Small and medium companies would be the most impacted and automotive, FMCG, retail and manufacturing are sectors at the frontline. Over 85% of family-run firms and SMEs saw no recovery in business in months up to June because of COVID-19 according to the World Bank report. While 34% of the respondents answered that the recovery from the impacts of COVID-19 will depend on how the supply chain across all industries will react, another 51% of the respondents estimate a recovery within 6 months.

b. Trade barriers

Botst u buiten de EU op handelsbelemmeringen of andere problemen op het vlak van markttoegang? Laat het ons weten via handelsbelemmering@fitagency.be. Wij analyseren uw aangifte en maken die via de geijkte kanalen over aan de bevoegde instanties.

c. Measures for economic relaunch

Recent events have an impact on trade, investments, human capital accumulation, and the environment for doing business. It is required to closely monitor the ground situation, and its prospects for economic growth.

d. Economic outlook

The COVID-19 situation and the political situation cause an overall slowdown in Myanmar’s economy and its trading with partner countries. Business operations, mobility, incomes, protests and labour shortages, as well as the ongoing disruption of critical business services, including logistics and telecommunications, and public services such as health and education are negatively impacted. Physical currency continues to be in short supply and access to banking and payment services remains limited. As of mid-July, the Myanmar kyat had depreciated by around 23 percent against the US dollar since late January, which combined with trade disruptions have led to rapidly increasing prices for some imported products, including fuel. Taken together, these shocks have weakened consumption, investments, and trade, and disrupted businesses’ operations and the supply of labour and inputs.

e. Short term opportunities

Due to the pandemic challenges, fundamental changes in the healthcare sector are urgently required. Medical equipment and pharmaceutical products are vital in the current situation. However, it is highly recommended to monitor and check updates for import procedures and logistical matters.

f. Long term opportunities

Situation is still uncertain in terms of COVID pandemic and political situation, close monitoring to the ground news are required to anticipate long term progress.

5. Useful links

6. Dossier Coronavirus

Het coronavirus heeft een wereldwijde impact, niet alleen op de gezondheid maar ook op de economie. Ook uw export kan hiervan gevolgen of zelfs hinder ondervinden.

FIT monitort de risico's dagelijks en ons buitenlands netwerk informeert u over alle implicaties voor Vlaamse exporteurs op hun internationale activiteiten.

In het dossier Coronavirus vindt u een aantal nuttige tips, adviezen en inzichten in de economische impact van de verspreiding van het virus op internationaal ondernemen.

Met vragen over internationaal ondernemen in tijden van Corona, kan u terecht bij exportadvies-corona@fitagency.be.

17 maart 2022