Continued cash shortages pose dim prospects for banks in Myanmar
MYANMAR: Currently, difficulty withdrawing cash from banks, withdrawing cash by paying a certain percentage to brokers, and cash shortages are a tremendous challenge to Myanmar.
“Until now, we have had problems with withdrawing cash from banks. The Central Bank also issued restrictions such as a withdrawal of Ks 20 million only for companies and Ks 2 million only for individuals and allowing more cash withdrawals for Covid-19 medicine and equipment. But, banks are facing cash shortages. So they can’t even pay the amount the Central Bank has set. Both private and government banks are the same now. We are still facing cash shortages,” said a local businessman, Dr Soe Tun.
Even before the current situation, a majority of banks in Myanmar have already been facing problems such as non-performing loans, disbursement of loans more than a set amount ,and seeking of loans in excessive amounts, according to the community of bankers.
Normally, banks runs by receiving deposits and giving loans. Due to current challenges, the banks are losing public credibility. Particularly, difficulty withdrawing cash has made the public lose their trust in banks.
“If we can’t withdraw our money, loss of our trust will be the problem for those banks. We can’t pay or receive cash between accounts. With the use of cash-only methods, the economic mechanism can run only with the cash the country has in hand. I don’t know much about accounts. Suppose I have a 10% amount of total cash on hand, my business has to rely on that amount. The remaining 90% is seated in the bank. If that’s so, our economy will be stagnant,” Dr Soe Tun said.
As of mid-July, the Myanmar kyat had depreciated by around 23 percent against the US dollar compared to late January, which combined with trade disruptions has led to rapid price increases for some imported products, including fuel, according to the World Bank report.
With depreciation of Myanmar kyat, trade and logistical restrictions and other external reasons,prices of imported goods have increased significantly. Fuel prices have jumped up to nearly 50%.
Despite bank branch re-openings and several interventions from the Central Bank of Myanmar, physical currency continues to be in short supply and access to banking and payment services remains limited.
Due to inconveniences in banking services, most of the public members have to pay a certain percentage (5% or 6%) when they withdraw cash from their own bank accounts.
Rumors surfaced recently that three local banks would go into liquidation amid difficulties with cash withdrawals from both banks and ATMs. The Central Bank dismissed the rumors about bank closures and demonetization of 5,000-kyat notes and 10,000-kyat notes. It said it had instructed the banks to operate their regular services.
In its statement issued on August 13, the Central Bank said such rumours triggered public concern and large crowds at the banks withdrawing their money. It urged the people not to be worried about banking services and their money, assuring that the banks could be trusted.
“The closure of three banks is just a rumour. It was designed to disrupt the stability of state economy, the bank rules and regulations.
Currently, the Central Bank will not take any action against any bank. We have no plan to close any bank,” said U Win Thaw, vice governor of the Central Bank of Myanmar.
The statement also pointed out that the Central Banks is placing emphasis on monetary stability in the country, while the local banks are providing services in accord with the strong rules and regulations.
“They are just issuing statements. But it is not enough because the banks cannot pay Ks20 million as they have promised. Cash cannot be paid even for government projects, tenders and construction projects. We have to solve our problems by ourselves. It’s a great problem for foreign companies. A lot of them have stopped operation, said a businessman in Yangon city.
“Myanmar citizens still can try to withdraw their cash in various ways by paying a percentage or another. For foreigners, however, it doesn’t work. Some are public companies or corporations. Paying a percentage to access cash is not OK. They have to wait and see. Consequently, most have stopped their operation. It is only in Myanmar where we have to pay a 6% to 8% percent to withdraw cash from our own bank accounts. The world will have never heard of it,” the businessman continued.
If the situation goes on like this in the banking and monetary sector, coupled with the current political turmoil and Covid-19 impacts, local SMEs will find it harder to survive. Meanwhile, some have closed down, some businesspeople said.
Dr Soe Tun pointed out that unlike other countries, Myanmar’s economy was being affected by several issues, not just a single one.
“Most people want to withdraw their money. The Central Bank suggested opening new bank accounts. We also did it,” said another businessman. “The amount of money they got is said to be about 2 trillion kyats. We want to urge the banks to seek ways to transfer money from the old accounts to new ones. Now, six months have passed. It’s better if we get a timeline.”
Some business persons commented that monetary system and banking system are built with public trust and credibility. The banking system and businesses will only be able to survive only if unnecessary controls and restrictions are to be eased. They added that it is necessary for policy makers in in Myanmar to adopt correct policies to remedy the economic downturn.
Typhoon Omais leaves behind flooded homes, damaged roads, railways in S. Korea
Typhoon Omais weakened into an extratropical cyclone Tuesday morning, after making landfall around midnight Monday, flooding roads and houses, and forcing more than 1,000 people to evacuate in southern South Korean cities that lay in its path.
Typhoon warnings issued the previous day were all lifted, but the weather service forecast heavy rains with strong winds to continue throughout the day in the coastal areas and southern parts of the country.
Firefighters rescued 11 people from flash flooding and no injuries were reported as of early Tuesday, according to the Central Disaster and Safety Countermeasures Headquarters, but 10 people were displaced in Tongyeong, South Gyeongsang Province, and 1,106 people were evacuated amid fears of landslides and flash floods in eastern Busan, Changwon and South Jeolla Province.
The railway connecting Gwangju and Miryang in South Gyeongsang Province was cutoff after parts of the railway became covered with piles of mud from heavy rainfall early Tuesday morning.
Six roads in the provinces of South Gyeongsang and South Jeolla were inundated with flash floods.
Twenty-one shopping quarters in Ulsan and three houses in Tongyeong were flooded. Flash floods swamped an outdoor parking lot in Sacheon, South Gyeongsang Province. In Ulsan and Busan, 217 homes temporarily lost power.
High winds and heavy downpours forced 86 flights and 70 ferries to stop service. (Yonhap)
HCM City issues urgent directive on pandemic prevention, residents not allowed to go out to buy food
HCM CITY — HCM City authorities issued an urgent Directive No 11 on COVID-19 prevention on Sunday), following the Government’s order to impose its toughest-ever measures beginning today (August 23) that require “everyone to stay at home” and not go out to buy food.
“No one, including those living in “green” zones, is allowed to go out to buy food,” Nguyễn Thành Phong, chairman of the People’s Committee, said.
Directive No 11 requires authorities of all districts and Thủ Đức City to strictly impose all preventive measures so that the outbreak can be controlled by September 15.
Previously, the city said that households in a green (COVID-19 free area) or orange zone would be allowed to go out once a week to buy food. But the city has changed the rule.
The city has classified all 312 communes or wards in three levels: green zone (free-COVID zone), orange zone (high-risk zone) or red zone (extremely high-risk zone). The goal is to maintain and expand the green zones while isolating and reducing the red and orange zones.
To ensure food supply, the city has set up special working groups in wards, communes and townships to help buy food and essential goods on behalf of residents and deliver them to their door.
Phong said the city’s 312 wards, communes and towns, as well as factories and enterprises, play a key role in the prevention measures.
The directive also requires enhanced inspection of people on city streets. They must have a travel paper issued by appropriate agencies or an authentic identification badge.
The city requires “thorough isolation between people, families, wards and communes”. The strict measures aim to protect the health of everyone in the city, according to Phong. “Every citizen plays a major role in the fight against the pandemic.”
The city will continue to provide up to two million social welfare packages (rice, vegetables, cooking oil and spices for one week) to the poor, and will prepare nutritious meals for disadvantaged COVID-19 patients.
Tests for everyone
Phong said the city would test the entire population during the two-week stay-at-home period. The COVID-19 testing, to be undertaken under the guidance of the Ministry of Health, is being done to isolate and treat COVID patients in a timely manner.
The city will also continue to speed up its vaccination schedule.
It has asked the city Department of Health to work with districts to set up mobile vaccination teams fully equipped with protective equipment and clothing to go to “red” and “orange” zones. People living in these areas will go to their nearest mobile unit for their vaccination.
Phong has warned heads of agencies and district authorities (such as chairpersons of people’s committees of Thủ Đức City and city districts) and businesses that they will be held responsible for violations of pandemic prevention regulations.
The strict prevention measures will last until at least September 6. Military forces have been mobilised to help supply food and essential items for people so that no one lacks food.
The city aims to contain the outbreak by September 15.
HCM City residents can check the status of their neighbourhood on the following pandemic map from city authorities: https://bando.tphcm.gov.vn/ogis/ (English available).
By August 27, the city will set up an additional 400 mobile medical stations each equipped with medicine, 3-5 oxygen tanks, SpO2 (oxygen) metres, and quick-test equipment.
The city has also ordered strict punishment of anyone who distributes false or misleading information about pandemic prevention measures, causing panic or confusion in the community.
HCM City has recorded more than 176,000 cases since late April when the fourth wave began. — VNS
PM Lee Hsien Loong, US Vice-President Kamala Harris hail robust, enduring S’pore-US partnership
SINGAPORE – Prime Minister Lee Hsien Loong and United States Vice-President Kamala Harris hailed the robust and enduring partnership between their two countries at the Istana on Monday (Aug 23) as they announced new areas of cooperation in cyber security, climate, the economy, and combating pandemics.
Ms Harris underlined America’s appreciation for Singapore’s longstanding and enduring friendship in the context of South-east Asia and the Indo-Pacific, while PM Lee reaffirmed Singapore’s appreciation for the US’ active role in the Asia Pacific, especially in Southeast Asia.
They also expressed their shared support for a stable, rules-based international order in the region, where all countries can both cooperate and compete peacefully with one another and prosper together.
Ms Harris’ high-level visit, the first under the administration of President Joe Biden, comes as Singapore and the US mark 55 years of diplomatic ties.
Speaking at a joint press conference at the Istana after Ms Harris called on President Halimah Yacob, followed by meetings with him as well as several Singapore ministers, Mr Lee said the visit emphasises the US administration’s commitment to the region.
“It shows that the US has both strategic and economic stakes in South-east Asia. We value the US renewing ties with its friends and partners here, especially Singapore,” he said.
Ms Harris said the pandemic has had a profound impact on economies, families and workers and exposed the vulnerability of supply chains, which the US hopes to shore up with regional partners.
“Supply chains, without any question, are critical to ensuring that businesses can source the materials they need, get products to market, and enable people to buy these products,” she said, adding that a shortage of semiconductor chips would impact the production of a range of items from smartphones to laptops and cars.
“So working together with partners like Singapore on strengthening supply chains is critical in… ensuring Americans can provide for their families.”
As he has done on previous visits to the US as well as other forums, Mr Lee stressed the importance of the US being engaged in the region.
He also reiterated calls he made at the virtual Aspen Security Forum earlier this month for the US to pursue opportunities for regional cooperation, in areas such as digital trade and green growth.
“There is a substantial agenda of deliverables which will enhance our partnership, and I am confident that our longstanding and multi-faceted bilateral relationship will continue to strengthen year by year,” Mr Lee said, noting that bilateral trade has more than doubled since the US-Singapore free trade agreement was inked in 2004.
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Singapore is the second-largest Asian investor in the US, with direct investment stock of US$65 billion (S$88.5 billion). These investments and American exports to Singapore support over 250,000 American jobs.
The Republic is also home to nearly 5,500 US companies. The US is its largest foreign investor, with foreign direct investment stock of US$315 billion – more than the US investments in China, India and South Korea combined.
Regional and security cooperation
Turning to regional and security cooperation, Mr Lee said Singapore appreciates US participation in Asean and regional groupings like the Asean Regional Forum, Asean Defence Ministers’ Meeting Plus, and Asia-Pacific Economic Cooperation.
“We work together in these forums, reflecting our shared commitment to multilateralism to tackle regional and global issues like climate change,” he said.
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He noted that the US has played an important and constructive role in defence and security in the region for over 70 years.
Defence cooperation between both countries is underpinned by the 1990 MOU regarding the use of facilities in Singapore, which provides the US with military access to Singapore’s naval and air bases.
And as the US’ major security cooperation partner, Singapore has consistently supported a strong US presence in the region through its words and actions, said Mr Lee.
“Our two countries have robust cooperation on transnational issues including terrorism, cyber security and counter-proliferation… We were later the first South-east Asian country to contribute personnel and assets to the Global Coalition to Defeat ISIS.”
He added that the US is a partner nation in Singapore’s newly established multilateral Counter-Terrorism Information Facility, and intelligence and law enforcement agencies on both sides hold regular dialogues.
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Ms Harris is visiting Singapore and Vietnam to deepen US engagement with South-east Asia.
This is her second foreign trip since taking office in January, and she is the most senior US official to visit the region since Mr Biden was sworn in.
Her trip comes on the heels of Secretary of Defence Lloyd Austin’s visit to Singapore, Vietnam and the Philippines in July.
Singapore and the US have had regular, high-level engagements under both Democratic and Republican administrations. Most recently in September 2019, Mr Lee made a working visit to New York where he met then-President Donald Trump.
Collaborating on trade, pandemics
Both sides also announced a flurry of agreements to strengthen their collaboration in cyber security, climate change, the economy, pandemics, and space.
A new initiative is the US-Singapore Partnership for Growth and Innovation, which will strengthen bilateral and regional collaboration on trade and investment, beginning with four pillars: the digital economy, energy and environmental technologies, advanced manufacturing, and healthcare.
“We are elevating the US-Singapore Collaboration Platform MOU to a new Partnership for Growth and Innovation, and look forward to the MOU’s early conclusion and expansion of cooperation in advanced manufacturing and the digital economy,” said Mr Lee at the joint press conference.
The MOU was signed in 2016 and renewed in 2018. Both sides have agreed to work towards concluding discussions on the partnership later this year.
Mr Lee also welcomed a supply chain dialogue which will bring together government and industry leaders to discuss ways to strengthen supply chain resilience.
He also noted three cyber-security agreements which had been concluded by the cyber, defence and finance agencies on both sides, as well as pandemic cooperation on genome sequencing and epidemic intelligence.
“This will speed up identification of new Covid-19 variants as well as emerging disease threats, and augment regional preparedness for current and future pandemics,” he said.
Responding to questions from the media during the joint press conference, Mr Lee said that what will influence perceptions of the US’ resolve and commitment to the region will be what it does, going forward – including how it repositions itself and engages its broad range of partners and allies in the region, and how it continues the fight against terrorism.
Countries make calculations and take positions, and they have to adjust these from time to time, he added.
“Sometimes it can be done smoothly, sometimes there are hiccups, sometimes things go awry and take time to put right. But countries remain with long term interests, with long term partners, and it is the mark of a country which can succeed that it takes these interests and partners seriously and in a dispassionate way, and maintains them over the long term.
“And the US has been in the region… more than 70 years ago. There have been ups and downs, there have been difficult moments. There have also been over decades, dramatic transformations in Asia, wrought by the benign and constructive influence of the US as a regional guarantor of security and supporter of prosperity.
“Singapore hopes and works on the basis that the US will continue to play that role, and continue to engage the region for many more years to come.”
Ms Harris expressed her belief that South-east Asia and the Indo-Pacific will in large part dictate the future of the world.
She said that the agreements the US has inked with Singapore and the region are evidence of its strength and enduring relationships around the globe.
These are not only priorities that relate to the US’ security or economic interests, she added, but they also relate to challenges the world faces going forward – such as future pandemics and what countries can do together to research on and stop them.
“This is a relationship that is based on a shared vision, both in terms of the challenges we face, and also the opportunities that we face… It is about the future in terms of our mutual commitment, curiosity and interest,” she said.
“It is about what we have in terms of shared values for the need for universal norms on the issue of cyber security. It is about the interest that we have in being a global partner on the issue of vaccines, for example, and our shared commitment – understanding that when we have the resources, we will share them with the world.
“These are the things that Singapore and the United States have in common. And with that common purpose, and with a similar approach to our responsibility for our own citizens, and our responsibility as global citizens… We will continue to partner in a way that benefits not only Singaporeans and Americans, but the rest of the world.”
On Monday, Ms Harris is also due to visit Changi Naval Base and US littoral combat ship USS Tulsa, which is in port for a multilateral exercise.
On Tuesday (Aug 24), she will deliver a policy speech and participate in a round-table discussion with the business community at Gardens by the Bay.
Sri Lanka is presently facing a rising wave of Covid-19 infections, suspected to be caused by the Delta variant with authorities declaring a nationwide quarantine curfew since August 20 which will be lifted on August 30.
Sri Lanka’s medical experts on Monday said the Delta variant of the Covid-19 which is spreading across the country has acquired four mutations due to the high transmission rate but did not have any effect on vaccine efficacy.
Head of the Department of Immunology and Molecular Sciences of the Sri Jayawardenapura University, Professor Neelika Malavige said while the four mutations were found following gene sequencing, there was no urge to panic until the implications of the mutations were established, reports Xinhua news agency.
“One of the Delta mutations (A-222V) is seen in many countries, another (A-1078S) is found in Sri Lanka and Malaysia, while the other two (A-701S and R-24C) are only found in Sri Lanka. These are just mutations in the virus and that does not make these viruses new variants,” Malavige was quoted by a local newspaper as saying.
“We had identified many other mutations in the previous Alpha variant and in our variant of the Sri Lankan lineage (responsible for the second wave), which were of no significance. Therefore, although some of the Delta variant viruses seen in Sri Lanka might have certain unique mutations, there is no reason to be alarmed,” Malavige added.
Malavige said that these mutations were highly unlikely to have any effect on vaccine efficacy and requested people to get vaccinated against Covid-19.
Sri Lanka is presently facing a rising wave of Covid-19 infections, suspected to be caused by the Delta variant with authorities declaring a nationwide quarantine curfew since August 20 which will be lifted on August 30.
Hospitals are exhausted with rising admissions while oxygen dependency has also risen among the patients.
The country has recorded over 7,000 deaths and 390,000 Covid-19 infections.
The company said the fire had been brought under control at 4:30 p.m. local time (21:30 GMT) on Sunday, about one hour and a half after it broke out at the E-Ku A2 platform of the Ku-A Process Center, part of the Ku-Maloob-Zaap oil field, in Campeche Sound.
At least five workers were killed, two others missing and six injured in a fire at an oil platform in the Gulf of Mexico on Sunday, Mexico’s state-owned Petroleos Mexicanos (Pemex), which runs the rig, said Monday.
One of the injured people was in serious conditions, Pemex General Director Octavio Romero Oropeza told a press conference.
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The incident happened 100 km from Ciudad del Carmen in the southeast Campeche state, has claimed the lives of a Pemex employee and four workers from Cotemar, a rig maintenance company, he said.
Romero said the company was undergoing an exhaustive search for the missing persons, who work for the Conditions and Integrity Monitoring Firm.
Meanwhile, a root cause inspection would be conducted “to determine the source” of the fire “and apply the corresponding insurance,” said Romero.
The company said the fire had been brought under control at 4:30 p.m. local time (21:30 GMT) on Sunday, about one hour and a half after it broke out at the E-Ku A2 platform of the Ku-A Process Center, part of the Ku-Maloob-Zaap oil field, in Campeche Sound.
The oil field generates about 40 percent of Mexico’s crude oil output, or approximately 1.68 million barrels per day.
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