As the National League for Democracy prepares to take charge of Myanmar’s economy, small businesses in Yangon are cutting costs and preparing for the worst, with food prices soaring and the kyat touching an all-time low against the dollar.
As of mid-November, trade at the country’s border posts showed a 14 percent rise over last year despite a fall in trade at some locations due to armed conflict or natural disaster, according to Ministry of Commerce statistics.
The Central Bank of Myanmar plans to tighten monetary policy to counter inflation, though at the request of banks has extended the deadline to meet a new reserve requirement ratio until January, said senior officials.
More than 20,000 companies are at risk of being struck off by the regulator, including local conglomerates and multinationals, after failing to respond to a request for confirmation that they are still in business.
Micro-business can reduce poverty, entrepreneurs said this week, calling for greater attention to the sector. The government has failed to prioritise micro-businesses because of its focus on larger enterprises, they said.
Mogok residents want one thing from the incoming government: the right to take back their rubies. Gem traders living and working in the Mandalay Region township, famed for the quality of its rubies, say most local mines are run by outsiders.
Card payments in Myanmar are set to rise over the next few months as local shops and supermarkets sign up to Myanmar Payment Union, signalling the beginning of a shift in one of the world’s last cash-based economies.