Eurocham Survey: European companies asked for faster import and customer clearance procedures to ease effects of COVID19

EXECUTIVE SUMMARY

COVID 19 is an infectious disease caused by the most recently discovered coronavirus. The outbreak of COVID 19 has disrupted the global economy. Even a contained outbreak could result in significant economic impact in the short run.

The evolution of the disease and its economic impact is highly uncertain which makes it difficult for policy makers to formulate an appropriate macroeconomic policy response.

In March 2020, the European Chamber of Commerce in Myanmar (EuroCham Myanmar) conducted a survey to map out the expected economic impacts with European businesses active in Myanmar. The purpose of the survey is to address concerns to the Myanmar government and to seek ways in which the authority may provide support.

This study surveyed 33 representatives of European businesses active in Myanmar to assess their level of expected economic impact of the COVID 19 outbreak.

According to the respondents, more than 60% claim they are already either significantly or moderately affected; with a forecasted loss of revenue averaging from 30% to above 50%, small and medium companies would be the most impacted and automotive, FMCG, retail and manufacturing are sectors at the frontline.

2/3 of the European companies surveyed reported that the preventive measures taken by the Myanmar government have had little impact yet on their business and almost the same proportion forecast they will be able to cope if those measures would stiffen.

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.

The 3 most awaited responses from the government to support the economy are:

  1. Faster import procedures and customs clearance procedures to support the import/export industries cope with the sudden drop in
  2. Subsidies and relief for import and export companies to maintain a strong and steady supply
  3. Provide corporate tax rebate for the year 2020 to ensure sufficient treasury for concerned companies.

To download the full survey pdf click here

Source: Eurocham Myanmar

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