Myanmar Announces Covid-19 Economic Relief Plan

May 7, 2020

Myanmar Announces Covid-19 Economic Relief Plan

On April 27, the Government of Myanmar issued its Economic Relief Plan to Mitigate the Economic Impact from the COVID-19 Pandemic. The plan aims to improve the economic environment and ease the strain on businesses and households.

The Economic Relief Plan outlines seven broad goals (for example, “Ease the Impact on the Private Sector”) supported by 76 action plans covering a range of extraordinary fiscal measures, as well as measures to support businesses, households, and the self-employed. The key measures are summarized below.

Key Relief Measures for Businesses

Lower bank deposit and lending interest rates
Postponement of corporate income tax and commercial tax payments, due in March and June 2020, to September 2020
Exemption of customs duties, commercial tax, and specific goods tax imposed on the importation and distribution of medical supplies and products related to the prevention, control, and treatment of COVID-19
Three- to six-month exemption from lease fees for impacted firms that have leased state-owned factories for manufacturing, and that have made regular payments in the past three months
Permission for commercial banks to restructure and reschedule existing loans extended to SME businesses for longer repayment periods (up to a maximum of three years)
Exemption from import licensing and FDA requirements for products that are FDA-approved in another country
Establishment of a COVID-19 fund to provide one-year loans, at an annual interest rate of 1%, to businesses in the “cut-make-pack” and hotel and tourism industries that have suffered from COVID-19

Key Relief Measures for Households and the Self-Employed

Promotion of low-cost funding for microfinance institutions
Cash or lending support for smallholder farmers who have lost sales revenue or remittance income, to support input purchases in time for monsoon planting
Exemption from electricity tariffs for all households (excluding embassies and international organizations), up to 150 units per month
Encouragement of private financial institutions to give more flexibility related to interest and mortgage payments for households
Provision of financial aid to most affected households through mobile financial services (amount to be determined)

Among other things, the Economic Relief Plan also provides measures to promote innovative products and platforms; strengthen the healthcare system; and increase the COVID-19 fund and contingency funds to the extent necessary.

Related Professionals

Nada Songsasen

Thailand, Myanmar,

+66 2056 5555

Email

RELATED INSIGHTS

December 20, 2024

IP Holding Companies: Singapore vs. Hong Kong

With intellectual property playing an ever-increasing role in economic development, the need to harness, promote, and protect ASEAN innovation remains urgent as integration progresses. Among its objectives, the ASEAN Economic Community aims to transform the region into a hub of innovation and competitiveness and ensure that the region remains an active participant in the international IP community. With ASEAN member states increasing IP generation and further committing to global IP regimes, the region is increasingly looking toward sophisticated IP ownership and holding structures. IP Holding Companies ASEAN-based companies continue to centralize ownership of their IP assets in offshore holding and licensing vehicles—an approach multinational companies headquartered elsewhere have been using for a number of years. IP-intensive companies look to locate their IP portfolios in low-tax jurisdictions with strong IP registration and protection laws. The company then licenses the IP to operating companies in the group or to third-party licensees, franchisees, agents, distributors, and other partners in return for royalties or license fees. These special-purpose vehicles are typically referred to as IP holding companies. IP holding companies are popular because they can help corporations minimize tax, gain tax benefits or concessions, protect IP from bankruptcy or other claims against the parent company, and focus management attention on the IP portfolio as an income generator. Tax and IP Holding Companies Tax is the primary reason most companies park their IP in separate IP holding vehicles. Sometimes, companies choose to establish their IP holding company in a no-tax, low-tax, or preferred-tax jurisdiction close to their home country. The selected jurisdiction should also be a country with a large and well-established tax treaty network. Double taxation treaties are key considerations in jurisdiction shopping. If the IP assets need to be pledged as security for future borrowings or if they are to be included

December 9, 2024

Lexology Panoramic: Labor and Employment Disputes 2024 – Cambodia Chapter

Attorneys at Tilleke & Gibbins in Phnom Penh have contributed the Cambodia chapter to Labor and Employment Disputes 2024, a comprehensive guide from Lexology Panoramic to labor and employment dispute resolution in various jurisdictions around the world. The Cambodia chapter covers the following topics: Pre-action considerations: Key requirements, third-party funding, contingency fee arrangements Issuing a claim: Forum, territorial jurisdiction, standing, commencing claims, fees, service Defendants and legal personality: Types of claims, time limits, counterclaims Case management: Procedure, rules, amendments to claims, adding parties to proceedings, consolidating proceedings Class and collective actions: Special considerations Evidence: Witnesses, tactical considerations Interim relief: Availability, requirements Trial: Hearings conduct and typical time frames, confidentiality and public access, media reporting Elements of successful claims and burden of proof Alternative dispute resolution: Available types, requirements and expectations Enforcement: Collective employment and labor rights, enforcement of collective rights, standing Remedies and enforcement: Available remedies, assessing compensation, enforcement mechanisms Appeals: Appeal procedure and time frames, other means of challenge Update and trends: Recent cases and developments, technology developments, other issues The Cambodia chapter was authored by associates Mealtey Oeurn, Saryda Ou, Chanvisal Lok; and Jay Cohen, partner and director of the firm’s operations in Cambodia. Tilleke & Gibbins also contributed the Vietnam and Thailand chapters to Labor and Employment Disputes 2024. The full Cambodia chapter is available below as a PDF.

December 4, 2024

Thailand Legal Basics

Thailand Legal Basics, a valuable primer for foreign investors, explores all aspects of living and doing business in Thailand. Written by specialists at Tilleke & Gibbins in Bangkok, it is the only comprehensive English-language guide to the Thai legal system with a focus on the concerns of foreign business and investment.

November 27, 2024

Anatomy of a Business Rehabilitation Plan in Thailand

In Thailand, a business rehabilitation plan in court-supervised rehabilitation proceedings is a crucial element of the business rehabilitation process that outlines how a debtor’s assets will be managed. It also provides guidance for resolving a debtor’s business challenges so that the business can survive and continue to generate returns, increasing the likelihood that its creditors will be repaid. Key Plan Components The Bankruptcy Act B.E. 2483 sets forth the following components to be covered in a rehabilitation plan: The reasons for rehabilitation; Details about the debtor’s assets, liabilities, and other binding obligations at the time the court-ordered rehabilitation; Principles and methods of the rehabilitation; Redemption of collateral when there are secured creditors and guarantor liabilities; Ways to resolve problems arising from a temporary lack of liquidity during plan implementation; Action to be taken when a claim or debt is assigned; Name, qualifications, and letter of consent of the plan administrator, as well as information on compensation; Appointment and release of the plan administrator; Period in which the plan will be implemented (maximum of five years); and Refusal of the debtor’s assets or refusal of contractual rights if the debtor’s assets or contractual rights have obligations that exceed the benefits they yield. Considering the diverse nature and challenges of each debtor’s business, the details listed here are only general guidelines for what should be included in a rehabilitation plan. The planner has the flexibility to create a plan with different details or guidelines than those outlined above to best suit the nature and challenges of the debtor’s business. The planner can also omit some of the mentioned requirements if they are not relevant to the debtor’s business. Concerns of Relevance Court approval of the rehabilitation plan. Once the plan is approved by a meeting of the creditors, it is necessary

You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

Industries

Practices

May 7, 2020