Round 12 Detailed Note High-level findings: • Operating capacity declined: On average, firms operated at 59 percent of their capacity in June 2022—above 2021 levels but still representing a decline from 66% in March 2022. • Disruptive power outages: About half of all firms reported that power outages remained a concern for business operations. • Weakened kyat: Depreciation of the kyat against the US dollar remained a concern for about half of firms. • Continued price pressure: Fifty-six percent of firms raised prices in the three months to June 2022, resulting in a 16 percent average price increase over that period. Note: The latest survey was administered between May 11, 2022, and June 9, 2022, and covered a nationally representative sample of 500 firms. The period for the latest survey is referred to as June 2022. Figures show the results of Round 8 (August 2021), Round 9 (October 2021), Round 10 (December 2021), Round 11 (March 2022), and Round 12 (June 2022); Round 12 includes 203 of the same firms that were surveyed in Round 11. Due to attrition, the remaining firms have been substituted to meet sample needs. The reasons for high attrition rates are incomplete appointments (representing appointments that were continually rescheduled during the data collection period resulting in replacement with new firms) and declined appointments (representing unavailable respondents who declined to participate in survey rounds by noting there had been no significant changes in business operations from the prior). Firms continued operating in a challenging business environment, but few firms were considering closing. Figure 1: The business environment remained challenging in June 2022 70% 60% 50% 40% 30% 20% 10% 0% Average operating Cash flow shortage Difficulty making Permanent closure as an capacity payments on loans and adjustment plan other business credits Aug-21 Oct-21 Dec-21 Mar-22 Jun-22 Source: World Bank Firm Survey (Round 12) Partly due to seasonality,1 the average operating capacity of all firms declined in June 2022 (from March 2022) but remained higher than in 2021 (Figure 1). The share of firms reporting difficulty making repayments on loans and other business credits increased slightly to 15 percent (up from 13 percent in March 2022) but remained lower than the 2021 average. However, the share of firms experiencing cash flow shortages continued to decline in June 2022. Despite operating in an uncertain business environment, very few firms consider permanent business closure as an option, even if the current situation does not improve within the next three months. With continued demand and supply-side constraints, firms' operational levels modestly declined in June 2022 but remained higher than in 2021. Firms' operational levels modestly declined (Figure 2). In June 2022, temporary closures fell to only 8 percent of firms. Despite a sowing period for monsoon rice (a major agricultural crop), agricultural firms were the primary drivers of overall temporary closures, with 20 percent reporting closures, likely impacted by increased logistics and input costs and conflict escalation. With seasonality affecting operational hours, only 33 percent of firms operated at full capacity in June 2022—12 percentage points lower than in March 2022. Consequently, the average operating capacity across all firms declined to 59 percent in June 2022, down from 66 percent in March 2022. With a relatively higher share of firms reporting temporary closures, the average operating capacity of agricultural firms was only 53 percent—the lowest compared with firms in other sectors 1 Time period for questions related to firms’ business operations for the last completed month in this round is April. Hence, the seasonality factor (April with a longer public holiday period than the other months) is likely to contribute to firms’ performance and operations. (Figure 3). Although there was an overall decline in average operating capacity, service firms' average operating capacity continued to improve in June 2022. Figure 2: Firms' operating status Figure 3: Average operating capacity of firms (by sector) 80% 80% 60% 60% 40% 40% 20% 20% 0% Total Agriculture Manufacturing Service Retail and wholesale 0% Share of firms Share of firms Average operating with temporary operating at 100% capacity* closures capacity* Aug-21 Oct-21 Dec-21 Mar-22 Jun-22 Aug-21 Oct-21 Dec-21 Mar-22 Jun-22 Note: *Firms were asked to report on the last completed month. An average operating capacity across all firms was reported in this brief, as compared to reporting an average operating capacity of only those firms that were operational in previous briefs. Source: World Bank Firm Survey (Round 12) Both demand and supply constraints remained for firms (Figure 4). Of the firms still unable to operate at full capacity in the last completed month, about two-thirds reported that the reduction in sales was their most significant constraint. However, supply-side constraints remained important, with about one-third of firms reporting power outages and the unavailability of intermediate inputs as major challenges. Across all firms, conflict escalation, power outages, kyat volatility, and sales reduction were operational challenges in the last completed month, but there were variations across sectors (Figure 5). Conflict escalation was the biggest concern for agricultural firms, while power outages were more significant for service and manufacturing firms. Sales reduction and kyat volatility were the biggest challenges for retail and wholesale firms. Figure 4: Challenges reported by firms not being Figure 5: Share of firms reporting the biggest able to operate at full capacity challenge for their operations in the last completed month Sales reduction 64% 70% Total Power outage 31% 30% Service Unavailability of intermediate 30% inputs 27% Retail and wholesale Others 25% 15% Manufacturing Safety concerns for employees 11% 14% Agriculture Security concerns for business 10% assets or location 15% 0% 20% 40% 60% 80% 100% Limited internet access 2% Conflict escalation Power outages impacting the business operation 4% Myanmar kyat volatility Sales reduction Jun-22 Mar-22 Did not experience any challenges Note: Firms were asked to report the last completed month. Source: World Bank Firm Survey (Round 12) The labor market remained broadly stable in June 2022 (Figure 6). Because of seasonality, hiring activities were slightly lower, with only 2 percent of firms reporting new hires. In addition, the reported percentage of firms granting unpaid leave and reducing employee work hours picked up again. This is attributed to seasonality, as employees take more days off during this time with public holidays in April. More employees being likely to take leave and firms reducing labor hours mirror a decline in operating capacity. However, the June 2022 results indicate a modest decline in reports of layoffs and salary/wage reductions. Overall, the labor market conditions were generally stable, despite some disruptions resulting from seasonality factors. Figure 6: Share of firms reporting labor challenges 16% 12% 8% 4% 0% Hiring Laying off Granting unpaid leave Reducing salary, wages Reducing hours or benefits Aug-21 Oct-21 Dec-21 Mar-22 Jun-22 Note: Firms were asked to report the last completed month Source: World Bank Firm Survey (Round 12) Sales decline, inflationary pressure and exchange-rate depreciation continued. Sales and profit remained lower in June 2022 (Figure 7). With reduced operating capacity, 44 percent of firms reported lower sales in June 2022 than the same period last year. Consequently, average sales across all firms were 19 percent lower than in the same period last year. Worsening conflict, continued power outages, and foreign-exchange restrictions introduced in April 2022 all likely contributed to the sales decline. Across sectors, retail and wholesale firms suffered the most-severe sales impacts, with 66 percent of firms reporting sales declines at an average of 26 percent. Also, 54 percent of firms reported profit reductions, resulting in an average profit reduction of 30 percent. By region, a higher share of firms in Yangon reported profit reductions than in other parts of the country, at 61 percent. Firms in this region are more integrated with international trade and, therefore, more susceptible to higher imported input costs (due to higher global prices, kyat depreciation, and logistics constraints). Chin and the Dry Zone experienced the highest average profit reduction, with 34 percent, suggesting that the conflict escalation in these regions impacted firms' profitability. Figure 7: Sales impacts on firms Figure 8: Share of firms reporting price impacts 75% 60% 50% 40% 25% 0% 20% -25% 0% Share of firms Avg. price change in Of the firms not -50% reporting a price the past 3 months increasing prices, Share of firms Avg. sales Share of firms Avg. profit increase in the past 3 share of firms reporting sales change reporting profit change months planning to increase decline decline prices Mar-22 Jun-22 Note: Firms were asked to report the last completed month. Source: World Bank Firm Survey (Round 12) Inflationary pressures continued to increase (Figure 8). In the three months to June 2022, 56 percent of firms reported an increase in prices, their primary reason being the necessity to cover high intermediate and input prices. While only 27 percent of large firms increased prices, more than half of smaller firms did. As a result, the average price increase across all firms was 16 percent. Further increases could be expected in the near term, given increased input costs primarily due to the kyat depreciation. Figure 9: Share of firms reporting kyat depreciation 100% 75% 50% 25% 0% Share of all firms of which: Share of firms of which: Share of firms reporting negative reporting increased reporting increased impacts from the kyat input costs operating costs depreciation Oct-21 Dec-21 Mar-22 Jun-22 Note: Firms were asked to report the last completed month. Source: World Bank Firm Survey (Round 12) Despite a modest decline, negative impacts from the kyat depreciation remained in June 2022 (Figure 9). About half of firms still experienced negative impacts of the kyat depreciation against the US dollar. Of these firms, almost all experienced increased input costs. Moreover, 82 percent of these firms also reported an increase in operational costs, with service firms being hit the hardest with increases in their operational costs reported by 92 percent. This will impact firms' decisions on their output prices and efforts to control costs, including staffing decisions. Blackouts remained a concern for firm performance and operations. Figure 10: Share of firms reporting power Figure 11: Share of firms reporting how they have outages as a disruption to business operations managed power outages 80% Invested in diesel generators 74% 60% 40% Reduced operation hours 19% 20% Invested in off-grid power systems 14% such as solar, wind, or micro-hydro 0% Agriculture Total Manufacturing Service Retail and wholesale Others 4% Moved to a location with better access 2% to electricity Mar-22 Jun-22 Source: World Bank Firm Survey (Round 12) Power outages remained a critical issue for firms' operations (Figure 10). Half of the firms reported that these outages were disruptive to their business operations, with sectoral and regional differences. Despite a decline from March, roughly two-thirds of firms in the manufacturing and service sectors still experienced outages as disruptive to their operations. More firms in the retail and wholesale sector reported impacts as well. With their relatively lower electricity consumption, the agricultural sector remained the least affected by outages. Firms in Yangon continued to experience more-disruptive power outages than firms in other regions – reflecting a concentration of firms in the manufacturing and service sectors (which tend to consume more electricity) in Yangon. Due to the vital role of electricity in business operations and performance, 80 percent of firms have already managed to find a solution to recurring power outages (Figure 11). However, they incurred additional costs, with 74 percent of these firms opting to invest in diesel-based generators, adding further capital and operational expenses (and increasing vulnerability to higher fuel prices). Of the firms not yet able to manage power outages, 52 percent do not have plans to address the issue. Business expectations slightly improved from rock bottom levels for the short term, but challenges persist. Survey results suggest that short-term business expectations have slightly improved, but challenges persist (Figure 12). In June 2022, 75 percent of firms reported confidence about staying in business for the next month—reflecting a continued improvement since mid-2021. Also, the share of firms expecting to fall into arrears in the next three months remained lower than in 2021. Moreover, firms expected their sales to increase by 11 percent in the next three months compared to the same period last year. Despite optimistic expectations for the short term, only 18 percent of firms expect a recovery in the next six months to levels that existed before February 2021. Almost half of the surveyed firms expressed uncertainty as to whether they can recover to their pre-February 2021 levels. This suggests that long-term uncertainty remains for firms' operations; nevertheless, they have better business expectations for the next three months. In addition, firms reported that power outages, lack of demand, conflict escalation, and kyat volatility would remain challenges for their operations in the next three months. Consistent with these findings, only 7 percent of firms reported plans to invest and expand their business in 2022—half the number in March 2022. Figure 12: Firms' business expectations 100% 75% 50% 25% 0% -25% Confident to remain Fall in arrears in the Expecting to Average sales in business for the next 3 months recover within 6 expectation in the next month months next 3 months Aug-21 Oct-21 Dec-21 Mar-22 Jun-22 Source: World Bank Firm Survey (Round 12) Firms primarily relied on traditional methods for sales transactions and payments. The use of digital technology for payments and transactions is quite limited. Survey results suggest that firms frequently used traditional systems such as selling at business premises, text messages (SMS), and phone calls (Figure 13). Despite Myanmar's high mobile usage rate,2 only one-third of firms reported using SMS or phone calls for sales transactions. Likewise, only 14 percent of firms reported using social media platforms for sales, although roughly 40 percent of the population is on social media.3 The share of firms using other modern digital mechanisms (such as e-commerce platforms) remained negligible. Also, digital technology is still limited in sales payments, with cash being the most frequently used payment method (Figure 14). While mobile money applications have been in place for several years, only about a quarter of firms used them for transfers of sales payments. The use of other digital payment mechanisms, such as mobile banking and debit/credit cards, also remained limited. The low level of digital technology usage for sales transactions and payments suggests that most of Myanmar's firms may not have the capacity to adopt digital tools for business operations. In addition, internet disruptions or banking sector disruptions could hamper firms' attempts to embrace modern digital technology. Figure 13: The most frequently used methods for Figure 14: The most frequently used method for sales sales transactions payment Cash 96% Sales at firms' business 96% premises Money transfer through mobile 26% Sales through SMS and money apps 39% phone calls Bank transfer in person at a 14% bank Sales through social media 14% platforms Exchange of goods or services 8% Sales through email orders 1% Bank transfer through mobile 3% or internet banking Sales through an internal e- 1% commerce platform Prepaid card, debit card, or 1% credit card Sales through external Money transfer through 0% digital platforms platforms such as Western 0% Union Source: World Bank Firm Survey (Round 12) 2According to DataReportal, Myanmar's mobile connections as a percentage of its total population were found to be 126% in January 2020. 3According to DataReportal, there were 22 million social media users in Myanmar with 41 percent of social media penetration rate in January 2020. Appendix 1: Methodology The World Bank contracted Thura Swiss, a research and consulting firm, to conduct High-Frequency Phone Survey (HFPS) for the impacts of recent developments on firms in Myanmar. The HFPS for firms is a multi- topic and multi-round survey designed to collect information on operational impacts, sales impacts, financial impacts, resilience, and adjustment mechanisms. The questionnaire will be adapted as the situation in Myanmar evolves. In this survey, the sample frame is all firms in Myanmar, and this survey used the sample frame based on two sources. The first source is Myanmar Business Survey (MBS) 2015, which included 14,331 businesses representing 126,928 businesses nationally. However, the MBS survey did not cover agriculture and financial firms. Since the HFPS intends to cover all sectors across Myanmar, the firm list provided by Thura Swiss is used to have a sampling frame for agricultural and financial firms. Combining these two sources, the sampling frame used in this survey covered 169,964 firms. From this frame, 500 firms were randomly selected based on three stratum – geographical zone4, industry, and firm size. The distribution of samples by sector, firm size, industry, and zone are in Table 1, Table 2, Table 3, and Table 4. To allow interference from sample to population, the responses are weighted using inverse probability weights. The design of the questionnaire was based on existing enterprise surveys such as the World Bank Enterprise Survey (ES), FCI's Business Pulse Survey, the ES COVID-19 survey, and the experience of the World Bank team. The questions were designed to assess operational, sales, and financial impacts that firms experienced due to recent developments. The questionnaire also explored the resilience of firms, the adjustment mechanisms that they have taken, and governance-related issues such as tax payments and access to certain government services. Table 1: Sample distribution by sector Sector Number of firms Share of firms Agriculture 86 17% Manufacturing 161 32% Retail and wholesale 91 18% Service 162 32% Total 500 100% Table 2: Sample distribution by firm size Firm size Number of firms Share of firms Micro (1-4) 189 38% Small (5-19) 203 41% Medium (20-99) 83 17% Large (>99) 25 5% Total 500 100% 4 States and regions are grouped into zones based on their economic and geographic characteristics. Two of the five zones are single regions, Yangon and Mandalay. The Hilly Zone includes the states of Kachin, Kayah, and Shan. The Delta and Coastal Lowland Zone includes Ayeyarwaddy region, Rakhine region, Mon state, Bago region, Tanintharyi region, and Kayin state. Chin and the Dry Zone includes Chin state, Sagaing region, Magwe region, and Nay Pyi Taw. Table 3: Sample distribution by industry Industry Number of firms Share of firms Agriculture and aquaculture 86 17% Food and beverage products 79 16% Textiles and garments 25 5% Other manufacturing 57 11% Retail and wholesale 91 18% Construction 11 2% Accommodation 16 3% Food and beverage services 63 13% Financial services 11 2% Information technology and communication 10 2% Health and pharmaceutical services 10 2% Other services 41 8% Total 500 100% Table 4: Sample distribution by ecological zone Geographical zone Number of firms Share of firms Yangon 140 28% Mandalay 100 20% Chin and Dry Zone 79 16% Delta and Coastal Lowland 93 19% Hilly Zone 88 18% Total 500 100% Appendix 2: Operational Status Table 5: Current operational status of firms – by share of firms Sector Open Temporarily closed Agriculture 80% 20% Manufacturing 96% 4% Retail and wholesale 98% 3% Service 93% 7% Industry Agriculture and aquaculture 80% 20% Food and beverage products 94% 6% Textiles and garments 100% 0% Other manufacturing 99% 1% Retail and wholesale 98% 3% Construction 100% 0% Accommodation 96% 4% Food and beverage services 92% 8% Financial services 100% 0% Information technology and communication 100% 0% Health and pharmaceutical services 100% 0% Other services 93% 7% Firm size Micro (1-4) 93% 7% Small (5-19) 88% 12% Medium (20-99) 100% 0% Large (>99) 100% 0% Ecological zone Yangon 99% 1% Mandalay 93% 7% Chin and Dry Zone 72% 28% Delta and Coastal Lowland 98% 2% Hilly Zone 96% 4% Ownership by gender Fully female-owned 96% 4% Fully male-owned 92% 8% Partially female-owned 86% 14% Total 92% 8% Sample Size 469 23 Table 6: Average weeks closed and expected average weeks to resume operation for firms that were temporarily closed Sector Average weeks closed Average weeks to be Resumed Agriculture 38 19 Manufacturing 25 5 Retail and wholesale 34 9 Service 41 3 Industry Agriculture and aquaculture 38 19 Food and beverage products 26 5 Textiles and garments Other manufacturing 13 Retail and wholesale 34 9 Construction Accommodation Food and beverage services 30 3 Financial services Information technology and communication Health and pharmaceutical services Other services 62 1 Firm size Micro (1-4) 55 18 Small (5-19) 15 3 Medium (20-99) Large (>99) Ecological zone Yangon 48 Mandalay 55 Chin and Dry Zone 35 7 Delta and Coastal Lowland 13 2 Hilly Zone 53 48 Ownership by gender Fully female-owned 49 9 Fully male-owned 43 14 Partially female-owned 21 3 Total 37 13 Sample size 18 7 Table 7: Share of firms operating at the full capacity and average operating capacity of all firms Share of firms operating at Average operating capacity Sector full capacity Agriculture 42% 53% Manufacturing 40% 65% Retail and wholesale 19% 56% Service 30% 61% Industry Agriculture and aquaculture 42% 53% Food and beverage products 36% 60% Textiles and garments 70% 79% Other manufacturing 40% 71% Retail and wholesale 19% 56% Construction 5% 74% Accommodation 62% 45% Food and beverage services 29% 68% Financial services 46% 88% Information technology and communication 33% 69% Health and pharmaceutical services 48% 67% Other services 28% 52% Firm size Micro (1-4) 31% 58% Small (5-19) 37% 60% Medium (20-99) 30% 67% Large (>99) 35% 63% Ecological zone Yangon 39% 65% Mandalay 39% 57% Chin and Dry Zone 22% 40% Delta and Coastal Lowland 36% 70% Hilly Zone 25% 58% Ownership by gender Fully female-owned 30% 59% Fully male-owned 38% 61% Partially female-owned 20% 52% Total 33% 59% Sample size 149 491 Table 8: Operational challenges for the firms that were not able to operate at the full capacity – by share of firms Sector Safety Security concerns for Sales Unavailability of Power Limited internet access concerns for business assets or reducti intermediate outage impacting the business employees location on inputs s operation Agriculture 16% 15% 55% 38% 18% 1% Manufacturing 7% 12% 65% 25% 38% 2% Retail and wholesale 3% 1% 73% 17% 21% 0% Service 23% 14% 60% 47% 48% 3% Industry Agriculture and aquaculture 16% 15% 55% 38% 18% 1% Food and beverage products 3% 7% 66% 19% 29% 0% Textiles and garments 24% 0% 58% 9% 10% 0% Other manufacturing 10% 19% 64% 34% 52% 5% Retail and wholesale 3% 1% 73% 17% 21% 0% Construction 49% 7% 54% 47% 11% 0% Accommodation 0% 10% 70% 0% 10% 0% Food and beverage services 26% 17% 56% 60% 69% 2% Financial services 87% 83% 17% 4% 91% 0% Information technology and communication 0% 0% 79% 79% 21% 21% Health and pharmaceutical services 0% 14% 32% 4% 28% 0% Other services 20% 10% 66% 28% 16% 6% Firm size Micro (1-4) 10% 10% 62% 32% 24% 1% Small (5-19) 12% 10% 71% 24% 45% 2% Medium (20-99) 18% 3% 53% 22% 40% 7% Large (>99) 19% 0% 80% 60% 59% 0% Ecological zone Yangon 11% 7% 68% 23% 38% 2% Mandalay 10% 6% 70% 42% 31% 5% Chin and Dry Zone 20% 20% 61% 35% 33% 0% Delta and Coastal Lowland 8% 10% 66% 22% 30% 2% Hilly Zone 7% 3% 58% 36% 24% 1% Ownership by gender Fully female-owned 3% 2% 56% 18% 11% 0% Fully male-owned 8% 9% 68% 25% 28% 3% Partially female- owned 24% 18% 65% 53% 55% 0% Total 11% 10% 64% 30% 31% 2% Sample Size 43 27 188 88 114 11 Table 9: The biggest operational challenge for all firms – by share of firms Sector Conflict Power Myanmar Sales Did not experience escalation outages kyat volatility reduction any challenges Agriculture 41% 1% 9% 24% 25% Retail and wholesale 7% 11% 29% 35% 17% Service 9% 46% 7% 17% 20% Industry Agriculture and aquaculture 41% 1% 9% 24% 25% Food and beverage products 18% 42% 19% 17% 4% Textiles and garments 0% 35% 3% 19% 43% Other manufacturing 19% 32% 12% 23% 14% Retail and wholesale 7% 11% 29% 35% 17% Construction 1% 7% 7% 42% 43% Accommodation 6% 26% 0% 51% 18% Food and beverage services 3% 60% 3% 18% 17% Financial services 88% 5% 5% 0% 2% Information technology and communication 55% 14% 31% 0% 0% Health and pharmaceutical services 26% 17% 24% 19% 14% Other services 19% 29% 13% 12% 26% Firm size Micro (1-4) 20% 21% 15% 23% 21% Small (5-19) 21% 25% 16% 27% 11% Medium (20-99) 7% 55% 12% 9% 17% Large (>99) 0% 43% 36% 20% 1% Ecological zone Yangon 8% 30% 14% 23% 25% Mandalay 18% 20% 7% 31% 23% Chin and Dry Zone 39% 23% 12% 19% 8% Delta and Coastal Lowland 14% 23% 20% 24% 19% Hilly Zone 16% 22% 19% 28% 15% Ownership by gender Fully female-owned 2% 24% 20% 35% 19% Fully male-owned 21% 21% 17% 23% 18% Partially female-owned 32% 30% 8% 17% 14% Total 20% 23% 16% 24% 18% Sample Size 71 145 79 117 80 Table 10: Share of firms reporting the labor-related activities Reducing Laying Granting salary, Reducing Sector Hiring off unpaid wages, or hours leave benefits Agriculture 2% 1% 0% 1% 1% Manufacturing 3% 7% 6% 7% 5% Retail and wholesale 1% 3% 1% 3% 2% Service 4% 9% 3% 9% 6% Industry Agriculture and aquaculture 2% 1% 0% 1% 1% Food and beverage products 3% 8% 9% 8% 4% Textiles and garments 6% 1% 0% 1% 0% Other manufacturing 3% 5% 3% 5% 7% Retail and wholesale 1% 3% 1% 3% 2% Construction 0% 42% 0% 42% 43% Accommodation 7% 0% 4% 0% 0% Food and beverage services 5% 2% 0% 2% 0% Financial services 0% 0% 0% 0% 0% Information technology and communication 0% 0% 0% 0% 0% Health and pharmaceutical services 3% 6% 0% 6% 8% Other services 2% 20% 8% 20% 15% Firm size Micro (1-4) 2% 3% 3% 3% 3% Small (5-19) 3% 7% 3% 7% 5% Medium (20-99) 9% 4% 0% 4% 2% Large (>99) 24% 6% 17% 6% 2% Ecological zone Yangon 8% 7% 6% 7% 6% Mandalay 2% 5% 2% 5% 2% Chin and Dry Zone 0% 6% 5% 6% 3% Delta and Coastal Lowland 2% 4% 2% 4% 4% Hilly Zone 1% 1% 0% 1% 1% Ownership by gender Fully female-owned 2% 4% 4% 4% 2% Fully male-owned 2% 5% 2% 5% 4% Partially female-owned 4% 4% 3% 4% 4% Total 2% 5% 3% 5% 3% Sample Size 27 30 16 30 26 Appendix 3: Business Performance Table 11: Sales in the last completed month compared to the same period last year – by share of firms Sector Don't know Increase Remain the same Decrease Agriculture 13% 19% 38% 31% Manufacturing 9% 15% 29% 47% Service 12% 31% 28% 29% Industry Agriculture and aquaculture 13% 19% 38% 31% Food and beverage products 12% 13% 30% 45% Textiles and garments 9% 33% 42% 15% Other manufacturing 5% 16% 27% 52% Retail and wholesale 3% 4% 27% 66% Construction 0% 0% 48% 52% Accommodation 14% 8% 48% 30% Food and beverage services 9% 38% 26% 28% Financial services 46% 0% 2% 51% Information technology and communication 3% 0% 81% 16% Health and pharmaceutical services 0% 0% 72% 28% Other services 17% 24% 26% 32% Firm size Micro (1-4) 8% 18% 31% 43% Small (5-19) 12% 14% 28% 46% Medium (20-99) 9% 9% 45% 37% Large (>99) 19% 19% 17% 45% Ecological zone Yangon 2% 14% 39% 45% Mandalay 18% 13% 24% 45% Chin and Dry Zone 25% 8% 25% 42% Delta and Coastal Lowland 0% 24% 26% 50% Hilly Zone 5% 16% 49% 30% Ownership by gender Fully female-owned 10% 17% 25% 48% Fully male-owned 8% 14% 28% 49% Partially female-owned 12% 22% 42% 24% Total 9% 16% 31% 44% Sample Size 42 63 164 223 Table 12: Share of firms reporting a price increase in the past three months and average price change across all firms Sector Share of firms reporting a price Average price increase change Agriculture 41% 11% Manufacturing 64% 16% Retail and wholesale 59% 22% Service 62% 17% Industry Agriculture and aquaculture 41% 11% Food and beverage products 66% 14% Textiles and garments 59% 21% Other manufacturing 62% 18% Retail and wholesale 59% 22% Construction 51% 11% Accommodation 20% 2% Food and beverage services 71% 16% Financial services 49% 19% Information technology and communication 19% 9% Health and pharmaceutical services 46% 10% Other services 53% 19% Firm size Micro (1-4) 54% 17% Small (5-19) 60% 16% Medium (20-99) 59% 11% Large (>99) 27% 11% Ecological zone Yangon 63% 18% Mandalay 50% 14% Chin and Dry Zone 44% 18% Delta and Coastal Lowland 66% 17% Hilly Zone 49% 13% Ownership by gender Fully female-owned 69% 25% Fully male-owned 51% 14% Partially female-owned 61% 15% Total 56% 16% Sample Size 268 492 Table 13: Major decisions to increase prices among the firms that increased prices – by share of firms To cover higher costs due To cover higher To follow industry To to an increase in supply, costs due to an trends as boost intermediate and input increase in competitors reven Sector prices operation cost increased prices ue Agriculture 79% 16% 0% 5% Manufacturing 96% 4% 0% 0% Retail and wholesale 96% 1% 3% 0% Service 83% 17% 0% 0% Industry Agriculture and aquaculture 79% 16% 0% 5% Food and beverage products 94% 6% 0% 0% Textiles and garments 100% 0% 0% 0% Other manufacturing 99% 1% 0% 0% Retail and wholesale 96% 1% 3% 0% Construction 96% 4% 0% 0% Accommodatio n 100% 0% 0% 0% Food and beverage services 95% 5% 0% 0% Financial services 100% 0% 0% 0% Information technology and communicatio n 100% 0% 0% 0% Health and pharmaceutical services 100% 0% 0% 0% Other services 55% 45% 0% 0% Firm size Micro (1-4) 89% 10% 0% 1% Small (5-19) 95% 3% 2% 0% Medium (20- 99) 69% 31% 0% 0% Large (>99) 7% 93% 0% 0% Ecological zone Yangon 87% 9% 4% 0% Mandalay 91% 9% 0% 0% Chin and Dry Zone 100% 0% 0% 0% Delta and Coastal Lowland 84% 14% 0% 2% Hilly Zone 99% 1% 0% 0% Ownership by gender Fully female- owned 95% 3% 3% 0% Fully male- owned 85% 13% 0% 2% Partially female-owned 98% 2% 0% 0% Total 90% 8% 1% 1% Sample Size 246 20 1 1 Table 14: Average sales and profit change in the last completed month compared to the same period last year Sector Average sales change Average profit change Agriculture -17% -29% Manufacturing -20% -31% Retail and wholesale -26% -39% Service -9% -20% Industry Agriculture and aquaculture -17% -29% Food and beverage products -24% -38% Textiles and garments 8% -7% Other manufacturing -19% -26% Retail and wholesale -26% -39% Construction -25% -34% Accommodation -17% -17% Food and beverage services -8% -15% Financial services -67% -53% Information technology and communication -4% -37% Health and pharmaceutical services -11% -23% Other services -9% -32% Firm size Micro (1-4) -19% -30% Small (5-19) -20% -33% Medium (20-99) -12% -17% Large (>99) -18% -32% Ecological zone Yangon -14% -29% Mandalay -22% -26% Chin and Dry Zone -29% -34% Delta and Coastal Lowland -16% -32% Hilly Zone -15% -28% Ownership by gender Fully female-owned -18% -32% Fully male-owned -23% -35% Partially female-owned -7% -14% Total -19% -30% Sample Size 450 416 Table 15: Among the firms that did not increase prices in the past three months, the share of firms reporting a plan to increase prices in the next three months Sector Plan to increase prices Agriculture 7% Manufacturing 9% Retail and wholesale 3% Service 10% Industry Agriculture and aquaculture 7% Food and beverage products 11% Textiles and garments 8% Other manufacturing 5% Retail and wholesale 3% Construction 0% Accommodation 0% Food and beverage services 0% Financial services 0% Information technology and communication 17% Health and pharmaceutical services 0% Other services 19% Firm size Micro (1-4) 8% Small (5-19) 3% Medium (20-99) 11% Large (>99) 22% Ecological zone Yangon 8% Mandalay 4% Chin and Dry Zone 8% Delta and Coastal Lowland 6% Hilly Zone 11% Ownership by gender Fully female-owned 0% Fully male-owned 9% Partially female-owned 6% Total 7% Sample Size 16 Table 16: Reasons for input shortages among the firms experiencing supply disruptions – by share of firms Sector Not available Cost increased Lower quality Agriculture 52% 91% 42% Manufacturing 80% 94% 26% Retail and wholesale 76% 93% 26% Service 59% 92% 16% Industry Agriculture and aquaculture 52% 91% 42% Food and beverage products 77% 95% 25% Textiles and garments 99% 94% 8% Other manufacturing 83% 94% 27% Retail and wholesale 76% 93% 26% Construction 100% 100% 84% Accommodation 100% 100% 28% Food and beverage services 54% 91% 13% Financial services 100% 100% 0% Information technology and communication 83% 83% 65% Health and pharmaceutical services 84% 56% 0% Other services 75% 100% 28% Firm size Micro (1-4) 63% 93% 26% Small (5-19) 70% 92% 36% Medium (20-99) 97% 87% 22% Large (>99) 99% 92% 12% Ecological zone Yangon 93% 95% 36% Mandalay 73% 87% 35% Chin and Dry Zone 44% 93% 56% Delta and Coastal Lowland 60% 94% 9% Hilly Zone 73% 92% 33% Ownership by gender Fully female-owned 78% 99% 16% Fully male-owned 79% 91% 31% Partially female-owned 25% 96% 34% Total 66% 93% 30% Sample Size 141 165 61 Table 17: Share of reporting foreign exchange issues impacting their business performance and operations Sector MMK depreciation against USD Limited access to USD MMK depre Agriculture 46% 18% Manufacturing 45% 21% Retail and wholesale 51% 10% Service 52% 27% Industry Agriculture and aquaculture 46% 18% Food and beverage products 44% 21% Textiles and garments 33% 12% Other manufacturing 47% 22% Retail and wholesale 51% 10% Construction 57% 9% Accommodation 51% 1% Food and beverage services 61% 33% Financial services 49% 49% Information technology and communication 100% 69% Health and pharmaceutical services 97% 6% Other services 35% 18% Firm size Micro (1-4) 49% 16% Small (5-19) 47% 22% Medium (20-99) 48% 32% Large (>99) 54% 45% Ecological zone Yangon 45% 25% Mandalay 42% 14% Chin and Dry Zone 45% 13% Delta and Coastal Lowland 45% 16% Hilly Zone 67% 30% Ownership by gender Fully female-owned 45% 18% Fully male-owned 50% 17% Partially female-owned 46% 24% Total 48% 19% Sample Size 245 120 Table 18: Among the firms experiencing the kyat depreciation against the US dollar, major impacts are – by share of firms Sector Increased raw material or input Increased operational cost cost Agriculture 100% 70% Manufacturing 99% 81% Retail and wholesale 99% 84% Service 100% 92% Industry Agriculture and aquaculture 100% 70% Food and beverage products 99% 73% Textiles and garments 96% 50% Other manufacturing 100% 94% Retail and wholesale 99% 84% Construction 100% 100% Accommodation 100% 16% Food and beverage services 100% 98% Financial services 100% 100% Information technology and communication 100% 70% Health and pharmaceutical services 100% 64% Other services 100% 92% Firm size Micro (1-4) 100% 84% Small (5-19) 99% 76% Medium (20-99) 96% 85% Large (>99) 91% 91% Ecological zone Yangon 100% 85% Mandalay 99% 79% Chin and Dry Zone 100% 45% Delta and Coastal Lowland 100% 98% Hilly Zone 99% 82% Ownership by gender Fully female-owned 99% 87% Fully male-owned 100% 79% Partially female-owned 99% 86% Total 100% 82% Sample Size 241 196 Table 19: Outstanding loans from commercial banks, non-banking financial institutions, friends, and family – by share of firms Commercial Non-banking Friends or Sector banks financial institutions family Agriculture 27% 7% 35% Manufacturing 13% 14% 41% Retail and wholesale 11% 10% 40% Service 6% 4% 42% Industry Agriculture and aquaculture 27% 7% 35% Food and beverage products 12% 13% 37% Textiles and garments 19% 39% 62% Other manufacturing 14% 11% 43% Retail and wholesale 11% 10% 40% Construction 48% 1% 55% Accommodation 15% 12% 17% Food and beverage services 4% 5% 47% Financial services 0% 0% 51% Information technology and communication 18% 0% 69% Health and pharmaceutical services 0% 0% 0% Other services 7% 0% 38% Firm size Micro (1-4) 14% 10% 37% Small (5-19) 16% 7% 42% Medium (20-99) 16% 7% 45% Large (>99) 1% 0% 42% Ecological zone Yangon 17% 2% 53% Mandalay 11% 17% 40% Chin and Dry Zone 14% 10% 36% Delta and Coastal Lowland 13% 6% 38% Hilly Zone 19% 14% 33% Ownership by gender Fully female-owned 13% 11% 46% Fully male-owned 18% 8% 40% Partially female-owned 7% 9% 31% Total 15% 9% 39% Sample Size 81 41 199 Table 20: Delaying payments for more than one week to suppliers, tax authorities, banks, and non-bank institutions and employees– by share of firms Supplier Tax Banks and non- Employee Sector s authorities bank s Agriculture 10% 1% 4% 2% Manufacturing 14% 5% 8% 3% Retail and wholesale 21% 9% 2% 4% Service 13% 5% 5% 7% Industry Agriculture and aquaculture 10% 1% 4% 2% Food and beverage products 10% 7% 8% 1% Textiles and garments 23% 0% 0% 0% Other manufacturing 18% 3% 10% 7% Retail and wholesale 21% 9% 2% 4% Construction 43% 0% 0% 6% Accommodation 21% 9% 0% 0% Food and beverage services 11% 2% 6% 10% Financial services 0% 0% 0% 0% Information technology and communication 4% 3% 17% 0% Health and pharmaceutical services 25% 6% 0% 0% Other services 15% 8% 4% 5% Firm size Micro (1-4) 12% 4% 5% 3% Small (5-19) 18% 7% 6% 5% Medium (20-99) 21% 4% 1% 14% Large (>99) 23% 17% 0% 0% Ecological zone Yangon 18% 11% 8% 5% Mandalay 26% 5% 8% 6% Chin and Dry Zone 11% 1% 5% 5% Delta and Coastal Lowland 9% 4% 3% 3% Hilly Zone 20% 8% 6% 2% Ownership by gender Fully female-owned 17% 5% 5% 0% Fully male-owned 10% 6% 5% 4% Partially female-owned 24% 2% 5% 6% Total 14% 5% 5% 4% Sample Size 90 31 26 33 Table 21: Major mechanisms to deal with cash flow shortages among the firms experiencing cash flow shortages - by the share of firms Sector Loans from Loans from non- Loans from Delaying commercial banking financial friends or payments to banks institutions family payees Agriculture 9% 8% 72% 10% Manufacturing 3% 5% 89% 3% Retail and wholesale 1% 4% 86% 9% Service 7% 3% 68% 22% Industry Agriculture and aquaculture 9% 8% 72% 10% Food and beverage products 0% 11% 89% 0% Textiles and garments 0% 0% 0% 100% Other manufacturing 6% 0% 90% 4% Retail and wholesale 1% 4% 86% 9% Construction 0% 0% 100% 0% Accommodation 0% 0% 43% 57% Food and beverage services 13% 6% 79% 2% Financial services 0% 0% 100% 0% Information technology and communication Health and pharmaceutical services Other services 0% 0% 56% 44% Firm size Micro (1-4) 3% 7% 79% 11% Small (5-19) 11% 4% 77% 8% Medium (20-99) 0% 2% 93% 6% Large (>99) 0% 0% 90% 10% Ecological zone Yangon 3% 2% 89% 7% Mandalay 7% 7% 85% 2% Chin and Dry Zone 4% 4% 88% 4% Delta and Coastal Lowland 5% 6% 77% 11% Hilly Zone 10% 10% 63% 17% Ownership by gender Fully female-owned 0% 4% 64% 33% Fully male-owned 7% 6% 83% 4% Partially female- owned 4% 4% 73% 18% Total 6% 6% 79% 10% Sample Size 9 9 125 11 Appendix 4: Business Expectations Table 22: Firms' confidence to remain open in next month, with the current level of cash flow – by share of firms Not very Not Neutr Confide Very Sector confident confident al nt confident Agriculture 5% 0% 21% 44% 29% Manufacturing 0% 0% 18% 53% 28% Retail and wholesale 1% 1% 43% 46% 10% Service 0% 0% 10% 41% 49% Industry Agriculture and aquaculture 5% 0% 21% 44% 29% Food and beverage products 0% 1% 20% 49% 31% Textiles and garments 2% 0% 21% 44% 34% Other manufacturing 0% 0% 15% 60% 25% Retail and wholesale 1% 1% 43% 46% 10% Construction 0% 43% 3% 54% 0% Accommodation 1% 0% 16% 55% 29% Food and beverage services 0% 0% 11% 49% 40% Financial services 0% 0% 0% 51% 49% Information technology and communication 0% 0% 14% 30% 55% Health and pharmaceutical services 0% 17% 14% 45% 25% Other services 0% 0% 8% 27% 65% Firm size Micro (1-4) 2% 0% 28% 41% 28% Small (5-19) 0% 1% 15% 58% 26% Medium (20-99) 0% 1% 13% 44% 42% Large (>99) 5% 2% 26% 27% 40% Ecological zone Yangon 2% 1% 15% 56% 26% Mandalay 0% 0% 26% 49% 25% Chin and Dry Zone 6% 0% 26% 49% 19% Delta and Coastal Lowland 0% 1% 22% 46% 31% Hilly Zone 0% 0% 27% 35% 38% Ownership by gender Fully female-owned 0% 0% 45% 30% 25% Fully male-owned 3% 1% 17% 53% 27% Partially female-owned 0% 0% 21% 44% 35% Total 2% 0% 23% 47% 28% Sample Size 7 11 100 229 145 Table 23: Likelihood to shut down business in the next three months – by share of firms Not very Not Neutra Likel Very Sector likely likely l y likely Agriculture 36% 39% 19% 6% 0% Manufacturing 33% 52% 13% 0% 2% Retail and wholesale 37% 45% 16% 1% 0% Service 48% 32% 18% 1% 0% Industry Agriculture and aquaculture 36% 39% 19% 6% 0% Food and beverage products 32% 54% 10% 1% 3% Textiles and garments 42% 53% 4% 0% 0% Other manufacturing 32% 51% 18% 0% 0% Retail and wholesale 37% 45% 16% 1% 0% Construction 0% 54% 45% 1% 0% Accommodation 37% 32% 31% 0% 0% Food and beverage services 37% 43% 18% 2% 0% Financial services 7% 93% 0% 0% 0% Information technology and communication 66% 34% 0% 0% 0% Health and pharmaceutical services 10% 76% 14% 0% 0% Other services 69% 14% 17% 0% 0% Firm size Micro (1-4) 42% 41% 13% 3% 1% Small (5-19) 30% 47% 21% 1% 0% Medium (20-99) 28% 45% 28% 0% 0% Large (>99) 53% 27% 2% 18% 0% Ecological zone Yangon 35% 46% 17% 2% 0% Mandalay 34% 40% 19% 3% 4% Chin and Dry Zone 25% 44% 25% 6% 0% Delta and Coastal Lowland 47% 41% 11% 1% 0% Hilly Zone 39% 49% 12% 0% 0% Ownership by gender Fully female-owned 44% 50% 6% 1% 0% Fully male-owned 33% 46% 17% 3% 1% Partially female-owned 46% 30% 23% 2% 0% Total 38% 43% 16% 2% 1% Sample Size 173 226 82 10 1 Table 24: Share of firms expecting to fall into arrears in outstanding liabilities in the next three months and recover to levels before February 2021 in the next six months Sector Fall in arrears Expecting to recover Agriculture 8% 23% Manufacturing 19% 15% Retail and wholesale 21% 15% Service 11% 20% Industry Agriculture and aquaculture 8% 23% Food and beverage products 23% 16% Textiles and garments 41% 3% Other manufacturing 11% 17% Retail and wholesale 21% 15% Construction 3% 0% Accommodation 28% 51% Food and beverage services 7% 21% Financial services 0% 2% Information technology and communication 0% 14% Health and pharmaceutical services 0% 17% Other services 18% 17% Firm size Micro (1-4) 14% 15% Small (5-19) 14% 25% Medium (20-99) 10% 11% Large (>99) 17% 10% Ecological zone Yangon 28% 36% Mandalay 18% 10% Chin and Dry Zone 5% 21% Delta and Coastal Lowland 12% 10% Hilly Zone 15% 25% Ownership by gender Fully female-owned 20% 19% Fully male-owned 14% 18% Partially female-owned 11% 18% Total 14% 18% Sample Size 50 81 Table 25: Share of firms reporting a plan to invest and expand business in 2022 Sector Plan to invest and expand business Agriculture 9% Manufacturing 9% Retail and wholesale 6% Service 2% Industry Agriculture and aquaculture 9% Food and beverage products 14% Textiles and garments 24% Other manufacturing 0% Retail and wholesale 6% Construction 0% Accommodation 0% Food and beverage services 0% Financial services 0% Information technology and communication 0% Health and pharmaceutical services 0% Other Services 6% Firm size Micro (1-4) 7% Small (5-19) 8% Medium (20-99) 1% Large (>99) 0% Ecological zone Yangon 9% Mandalay 12% Chin and Dry Zone 3% Delta and Coastal Lowland 6% Hilly Zone 10% Ownership by gender Fully female-owned 3% Fully male-owned 7% Partially female-owned 12% Total 7% Sample Size 30 Table 26: Operational challenges in the next three months – by share of firms Uncertain Conflict Supply chain Power The kyat Lack of business escalation disruptions outages volatility demand environme Sector nt Agriculture 61% 44% 26% 24% 41% 25% Manufacturing 27% 34% 54% 31% 38% 20% Retail and wholesale 25% 34% 42% 47% 52% 11% Service 39% 22% 65% 42% 33% 24% Industry Agriculture and aquaculture 61% 44% 26% 24% 41% 25% Food and beverage products 25% 25% 51% 27% 39% 15% Textiles and garments 27% 61% 56% 37% 34% 37% Other manufacturing 30% 43% 57% 37% 39% 24% Retail and wholesale 25% 34% 42% 47% 52% 11% Construction 54% 5% 9% 48% 7% 5% Accommodation 24% 5% 61% 51% 24% 2% Food and beverage services 27% 36% 82% 43% 33% 27% Financial services 7% 46% 49% 93% 51% 5% Information technology and communication 72% 3% 56% 98% 0% 0% Health and pharmaceutical services 57% 47% 43% 76% 0% 7% Other services 61% 1% 39% 38% 35% 24% Firm size Micro (1-4) 38% 35% 46% 35% 45% 19% Small (5-19) 38% 34% 44% 36% 34% 22% Medium (20-99) 37% 20% 59% 29% 32% 19% Large (>99) 41% 42% 97% 20% 19% 34% Ecological zone Yangon 25% 28% 52% 41% 34% 30% Mandalay 25% 32% 41% 30% 39% 16% Chin and Dry Zone 44% 25% 39% 28% 36% 19% Delta and Coastal Lowland 45% 38% 51% 41% 45% 20% Hilly Zone 32% 47% 40% 34% 50% 16% Ownership by gender Fully female-owned 31% 37% 57% 35% 42% 14% Fully male-owned 36% 32% 44% 36% 43% 23% Partially female-owned 50% 37% 41% 33% 36% 15% Total 38% 34% 46% 35% 41% 20% Sample Size 181 157 232 172 175 108 Appendix 5: Power outage – impacts and responses Table 27: Share of firms experiencing power outages disruptive to business operations, and of which, the share of firms that have managed power outages Share of firms experiencing Of which: Share of firms that have Sector power outages managed power outages Agriculture 30% 71% Manufacturing 59% 80% Retail and wholesale 40% 64% Service 67% 96% Industry Agriculture and Aquaculture 30% 71% Food and Beverage Products 59% 81% Textiles and Garments 59% 98% Other Manufacturing 60% 76% Retail and Wholesale 40% 64% Construction 90% 52% Accommodation 91% 100% Food and Beverage Services 73% 94% Financial Services 46% 100% Information Technology and Communication 100% 86% Health and Pharmaceutical Services 48% 100% Other Services 55% 99% Firm size Micro (1-4) 46% 76% Small (5-19) 51% 87% Medium (20-99) 64% 70% Large (>99) 93% 95% Ecological zone Yangon 62% 89% Mandalay 50% 83% Chin and Dry Zone 46% 76% Delta and Coastal Lowland 52% 72% Hilly Zone 31% 97% Ownership by gender Fully female-owned 51% 67% Fully male-owned 47% 79% Partially female-owned 48% 95% Total 49% 80% Sample Size 265 220 Table 28: Share of firms that have invested in diesel generators and off-grid power systems among the firms that have managed power outages Invested in diesel Invested in off-grid power Sector generators systems Agriculture 65% 15% Manufacturing 89% 5% Retail and wholesale 71% 19% Service 64% 22% Industry Agriculture and Aquaculture 65% 15% Food and Beverage Products 91% 2% Textiles and Garments 100% 9% Other Manufacturing 84% 8% Retail and Wholesale 71% 19% Construction 100% 0% Accommodation 77% 5% Food and Beverage Services 58% 31% Financial Services 5% 0% Information Technology and Communication 58% 0% Health and Pharmaceutical Services 100% 0% Other Services 76% 8% Firm size Micro (1-4) 72% 19% Small (5-19) 75% 9% Medium (20-99) 95% 5% Large (>99) 99% 0% Ecological zone Yangon 73% 8% Mandalay 74% 20% Chin and Dry Zone 82% 5% Delta and Coastal Lowland 67% 23% Hilly Zone 87% 9% Ownership by gender Fully female-owned 82% 8% Fully male-owned 77% 10% Partially female-owned 59% 31% Total 74% 14% Sample Size 184 24 Appendix 5: Tax payments Table 29: Share of firms reporting any types of taxes owed to the authorities in the past three months and the average tax payment change compared with the same period last year The average tax Sector Paid taxes in the past 3 months payment change Agriculture 15% 1% Manufacturing 47% 5% Retail and wholesale 48% 2% Service 58% 5% Industry Agriculture and aquaculture 15% 1% Food and beverage products 47% 8% Textiles and garments 47% 10% Other manufacturing 45% 0% Retail and wholesale 48% 2% Construction 84% 1% Accommodation 46% -2% Food and beverage services 67% 1% Financial services 5% 0% Information technology and communication 0% Health and pharmaceutical services 28% 2% Other Services 48% 16% Firm size Micro (1-4) 39% 5% Small (5-19) 44% 2% Medium (20-99) 47% 2% Large (>99) 48% 1% Ecological zone Yangon 50% 2% Mandalay 19% 0% Chin and Dry Zone 40% 2% Delta and Coastal Lowland 49% 6% Hilly Zone 34% 4% Ownership by gender Fully female-owned 46% 4% Fully male-owned 38% 6% Partially female-owned 47% -2% Total 41% 4% Sample Size 203 189 Table 30: Share of firms filing taxes in the past 3 months Sector Filed taxes in the past 3 months Agriculture 0% Manufacturing 1% Retail and wholesale 5% Service 13% Industry Agriculture and aquaculture 0% Food and beverage products 1% Textiles and garments 6% Other manufacturing 1% Retail and wholesale 5% Construction 0% Accommodation 1% Food and beverage services 20% Financial services 0% Information technology and communication 3% Health and pharmaceutical services 0% Other Services 3% Firm size Micro (1-4) 3% Small (5-19) 6% Medium (20-99) 7% Large (>99) 6% Ecological zone Yangon 18% Mandalay 1% Chin and Dry Zone 5% Delta and Coastal Lowland 0% Hilly Zone 5% Ownership by gender Fully female-owned 12% Fully male-owned 2% Partially female-owned 2% Total 4% Sample Size 32 Table 31: Share of firms reporting that major types of taxes paid in the past 3 months Sector Corporate income Commercial Registration tax tax tax Agriculture 40% 6% 46% Manufacturing 53% 22% 65% Retail and wholesale 48% 13% 44% Service 31% 10% 68% Industry Agriculture and aquaculture 40% 6% 46% Food and beverage products 48% 26% 82% Textiles and garments 86% 53% 32% Other manufacturing 57% 11% 43% Retail and wholesale 48% 13% 44% Construction 97% 0% 100% Accommodation 46% 2% 95% Food and beverage services 24% 2% 63% Financial services 0% 0% 100% Information technology and communication Health and pharmaceutical services 40% 0% 67% Other Services 44% 31% 78% Firm size Micro (1-4) 38% 14% 61% Small (5-19) 50% 14% 51% Medium (20-99) 75% 21% 85% Large (>99) 89% 86% 46% Ecological zone Yangon 45% 19% 35% Mandalay 26% 13% 55% Chin and Dry Zone 54% 19% 48% Delta and Coastal Lowland 37% 5% 71% Hilly Zone 61% 40% 67% Ownership by gender Fully female-owned 38% 6% 28% Fully male-owned 50% 12% 65% Partially female-owned 33% 26% 70% Total 44% 14% 58% Sample Size 104 45 123 Appendix 6: Use of digital technology in sales transactions and payments Table 32: The top three most frequently used methods for sales transactions – by share of firms Sales at firms' Sales through Sales through business SMS and phone social media Sector premises calls platforms Agriculture 94% 36% 13% Manufacturing 93% 48% 19% Retail and wholesale 100% 30% 7% Service 98% 38% 18% Industry Agriculture and aquaculture 94% 36% 13% Food and beverage products 91% 47% 10% Textiles and garments 77% 40% 33% Other manufacturing 98% 51% 30% Retail and wholesale 100% 30% 7% Construction 58% 48% 50% Accommodation 100% 72% 17% Food and beverage services 99% 30% 16% Financial services 100% 44% 0% Information technology and communication 100% 33% 19% Health and pharmaceutical services 94% 58% 35% Other Services 96% 47% 22% Firm size Micro (1-4) 96% 36% 11% Small (5-19) 97% 43% 19% Medium (20-99) 89% 58% 30% Large (>99) 62% 29% 18% Ecological zone Yangon 92% 46% 32% Mandalay 96% 30% 12% Chin and Dry Zone 99% 32% 9% Delta and Coastal Lowland 96% 45% 11% Hilly Zone 95% 35% 15% Ownership by gender Fully female-owned 99% 23% 10% Fully male-owned 97% 42% 15% Partially female-owned 92% 43% 14% Total 96% 39% 14% Sample Size 455 213 68 Table 33: The top three most frequently used methods for sales payments – by share of firms Transfer Bank transfer in Cash through mobile person at a bank Sector money apps Agriculture 97% 20% 11% Manufacturing 93% 31% 22% Retail and wholesale 98% 19% 12% Service 97% 34% 8% Industry Agriculture and aquaculture 97% 20% 11% Food and beverage products 94% 21% 17% Textiles and garments 80% 57% 28% Other manufacturing 93% 42% 29% Retail and wholesale 98% 19% 12% Construction 58% 90% 5% Accommodation 100% 27% 1% Food and beverage services 98% 28% 4% Financial services 56% 0% 44% Information technology and communication 100% 33% 1% Health and pharmaceutical services 100% 27% 6% Other Services 96% 45% 13% Firm size Micro (1-4) 96% 23% 12% Small (5-19) 96% 30% 16% Medium (20-99) 94% 42% 27% Large (>99) 57% 20% 35% Ecological zone Yangon 92% 46% 18% Mandalay 97% 39% 15% Chin and Dry Zone 98% 15% 9% Delta and Coastal Lowland 96% 20% 14% Hilly Zone 93% 24% 19% Ownership by gender Fully female-owned 99% 19% 9% Fully male-owned 96% 28% 15% Partially female-owned 94% 26% 16% Total 96% 26% 14% Sample Size 457 126 67 Appendix 7: Questionnaire for Myanmar Firm Monitoring Survey Round 12 Phone interview introduction and consent form Good morning/afternoon/evening. I am calling from [insert implementing contractor] on behalf of the World Bank. This establishment was randomly selected to participate in a survey, and the purpose of this survey is to better understand the current situation of businesses in Myanmar. I anticipate that this survey/interview will take less than [insert number of minutes] minutes to complete. The World Bank will use the survey results to monitor private sector development and assess the impacts of the recent events on businesses. The findings from the survey will be available to the public via the World Bank Myanmar website and Facebook page and will also be used in the World Bank's Myanmar Economic Monitor - a biannual publication assessing the latest developments in Myanmar's economy. All information and opinions you provide will be anonymized and kept confidential. Your name, the name of your establishment, and detailed contact information will not be used in any document based on this survey. Participating in this survey is completely voluntary, and you can stop participating in this survey at any time. Please call [Insert number of the supervisor] if you have any further questions or want to withdraw from the survey. 0. Do you agree to participate in this survey? Yes 1 Continue with survey questions No 2 Thank them for their time 1. Date and time of the interview (start) [Instruction: To be completed by interviewer/supervisor) Date (start_01) Time (start_02) A. Screener and General Characteristics 1. What is the name of the establishment? (a1) [Instruction: To be completed before the interview] Name of the establishment 2. Location of the establishment [Instruction: To be completed before the interview. For street address (a2a), please check with respondents if they are comfortable with their street address being included in the survey. If respondents are uncomfortable, insert “Not Applicable” (-5). Name Not Applicable Street address (a2a) -5 Township (a2b) State/region (a2c) 3. Is this establishment located in the industry zone? (a3) [Instruction: To be completed before the interview] Yes – Headquarters is in the zone 1 Yes – Branches, factories, and warehouses are in 2 the zone No 3 4. What type of product or service represents this establishment’s largest share of annual sales? (a4) Product or service with the largest share of annual sales 5. What is the main industry of activity of your establishment? (a5) [Instruction: To be filled out by enumerator based on question a4]. Sector Industry Name Code Agriculture Agriculture and Aquaculture 1 Food and Beverage Products 3 Manufacturing Textiles and Garments 4 Other Manufacturing 5 Retail and wholesale Retail and Wholesale 6 Construction 7 Accommodation 8 Restaurants or Food and Beverage services 9 Services Financial Services 10 Information Technology and Communication 12 Health and Pharmaceutical Services 13 Other Services 14 6. Is this establishment formally registered with any level of government authority at present with a business registration certificate/license and other necessary certificates/licenses/permits to operate a business? (a6) Yes 1 No 2 Don’t know (spontaneous) -9 7. What is the firm’s ownership status? (a7) Private owned by a national(s) 1 Private owned by a foreigner(s) 2 A joint venture owned by a national and foreign company(s) 3 Other (specify) 4 Don’t know (spontaneous) -9 8. When was this establishment established? (a8) Year this establishment was established Don’t know (spontaneous) -9 9. Amongst the owners of this establishment, are there any females? (a9) Yes 1 No 2 Go to a10 Don’t know (spontaneous) -9 Number What percentage of the establishment is owned by a female(s) (a9a) % owned by a female(s) 10. How many employees did this establishment have in January 2021? (a10) Number Number of full-time employees (a10a) Number of part-time employees (a10b) 11. What was the total share of female employees in January 2021? (a11) Number Female full-time employees (a11a) Share (%) Female part-time employees (a11b) Share (%) 12. What was the value of the total sales of this establishment in January 2021? (a12) Number Value of sales Don’t know (spontaneous) -9 13. Does this establishment usually export any of its products overseas? (a13) Yes 1 No 2 Don’t know (spontaneous) -9 14. Does this establishment have an official business bank account? (a18) Yes 1 No 2 Don’t know (spontaneous) -9 15. Is this establishment located in an urban or rural area? (a19) Urban 1 Rural 2 Don’t know (spontaneous) -9 16. Does this establishment use online services and digital financial services? (a20) Yes 1 No 2 Not applicable -5 Don’t know (spontaneous) -9 17. Does this establishment need any foreign currencies for business operations? (a21) Yes 1 Go to question a22 No 2 Go to the next section Not applicable -5 Don’t know (spontaneous) -9 18. Which of the following applies to the need for foreign currencies? (a22) [Instruction: Ask only if a21=1] Yes No Not applicable We import finished products directly 1 2 -5 and distribute them to the local market (a22a) We import supply and raw materials 1 2 -5 directly (a22b) We pay suppliers in foreign 1 2 -5 currencies (payment for services or any indirect imports) (a22c) We have loans from foreign banks 1 2 -5 (a22d) 19. Did this establishment pay any taxes to the authorities in the past three months before February 2021? (a23) Yes 1 Go to the next question No 2 Go to the next section Not applicable -5 Don’t know (spontaneous) -9 20. Which of the following taxes did you pay in the past three months before February 2021? (a24) Select all that applies [Instruction: Ask only if a23=1] Yes No Don’t know Not (spontaneous) Applicable Corporate income taxes (a24a) 1 2 -9 -5 Commercial tax (a24b) 1 2 -9 -5 Specific good tax (a24c) 1 2 -9 -5 Customs duties (a24d) 1 2 -9 -5 Registration tax (a24e) 1 2 -9 -5 Payroll tax (a24f) 1 2 -9 -5 Stamp duties (a24g) 1 2 -9 -5 Others (a24h) Please specify 21. Does this establishment arrange transportation for employees to come to the workplace or office? (a25) Yes 1 No 2 Don’t know (spontaneous) -9 B. Impacts on the overall operation 1. How many days did this establishment operate in the last completed month? (b1) Days the establishment operated (insert number of days) Don’t know (spontaneous) -9 2. What is the current status of this establishment? (Instruction: If the business is closed to the public but operates, it should be considered open) (b2) Open 1 Go to question (b2a) Temporary closed 2 Go to question (b3) Don’t know (spontaneous) -9 Go to question (b5) What percent of capacity for production or service did this establishment operate in the last completed month? (b2a) (Instruction: Only ask this question if b2=1, then go to question b5) Percent (insert percent) Don’t know (spontaneous) -9 What were the challenges of not being able to operate at full capacity? (b2b) (Instruction: Only ask this question if b2a<100%, and select all that applies) Yes No Don’t know Not (spontaneous) Applicable Safety concerns for employees (b2b_a) 1 2 -9 -5 Security concerns for business assets or 1 2 -9 -5 location (b2b_b) Sales reduction (b2b_c) 1 2 -9 -5 Unavailability of intermediate inputs 1 2 -9 -5 (b2b_d) Power outage (b2b_e) 1 2 -9 -5 Limited internet access impacting 1 2 -9 -5 business operation (b2b_f) Others (b2b_g) Please specify 3. How many weeks has this establishment been closed since the most recent closure? (b3) Weeks the establishment has been closed (insert number of weeks) Don’t know (spontaneous) -9 4. How many weeks do you expect this establishment to resume full operations? (b4) Number of weeks that the establishment (insert number of weeks) Don’t know (uncertain) -9 5. Did this establishment experience any of the following in the last completed month? (b6) Yes No Don’t know Not (spontaneous) applicable Reduction of sales (b6b) 1 2 -9 -5 Disruption of the supply of inputs 1 2 -9 -5 and raw materials (b6c) Cash flow shortages (b6d) 1 2 -9 -5 Reduction in access to credit (b6e) 1 2 -9 -5 Reduction in the workforce due to 1 2 -9 -5 layoff (b6f) Filed for insolvency or bankruptcy 1 2 -9 -5 (b6g) Having difficulty making payments 1 2 -9 -5 on loans and other business credits (b6h) Having difficulty making payments 1 2 -9 -5 to suppliers and employees due to reduced revenue (b6j) Having difficulty making payments 1 2 -9 -5 to suppliers and employees due to limited banking access (b6k) Limited internet access impacting 1 2 -9 -5 business operation (b6l) Damage to any business assets or 1 2 -9 -5 location (b6m) Reduction in tax payments to the 1 2 -9 -5 current administration (b6n) 6. What was the main reason for the disruption in intermediate materials or inputs? (b7) [Select all that applies] [Instruction: Only ask if b6c=1] Yes No Don’t know (spontaneous) Not available (b7a) 1 2 -9 Go to question b9 Cost increased (b7b) 1 2 -9 Go to question b7ba Lower quality (b7c) 1 2 -9 Go to question b9 Others (specify) (b7d) How much did intermediate materials or input prices increase compared to ____? (b7ba) [Instruction: Ask only if b7b=1] January 2021 (b7ba1) Past three months (b7ba2) The percentage of intermediate or (insert percent) (insert percent) input prices increased Don’t know (spontaneous) -9 -9 7. Why did you not experience a cash flow shortage? (b9) Select all that apply. [Instruction: Only ask this question if b6d=2, and select all that apply] Yes No Don’t know (spontaneous) Sales has been going well (b9a) 1 2 -9 This establishment can still have access to 1 2 -9 commercial banks (b9b) This establishment can still have access to non- 1 2 -9 banking financial institutions (b9c) This establishment has enough savings to 1 2 -9 manage cash flow (b9d) Others (b9e) Please specify 8. Does any of the following impact the performance and operation of this establishment? (b12) Yes No Don’t know (spontaneous) Depreciation of Myanmar Kyat against US 1 2 -9 dollar (b12a) Limited access to US dollar (b12b) 1 2 -9 Depreciation of Myanmar Kyat against other 1 2 -9 foreign currencies (b12c) Limited access to foreign currencies other than 1 2 -9 US Dollars (b12d) 9. Which of the following impacts did this establishment experience? (b13) Select all that apply. [Instruction: Ask only if any of the above in b12=1]. Yes No Don’t know Not (spontaneous) applicable Delayed payments to suppliers quoting 1 2 -9 -5 payments in US dollars (b13a) Inability to make payments to supplier quoting 1 2 -9 -5 payments in US dollars (b13b) Delayed payments to suppliers quoting 1 2 -9 -5 payments in other foreign currencies (b13c) Inability to make payments to suppliers 1 2 -9 -5 quoting payments in other foreign currencies (b13d) Increase in raw material or input cost (b13e) 1 2 -9 -5 Increase in operational costs (b13f) 1 2 -9 -5 Increase in kyat-equivalent income from 1 2 -9 -5 export sales (b13g) Others (b13h) Please specify 10. Which of the following was the biggest challenge for business operations in the last completed month? (b14) Only select one option. Conflict escalation 1 Power outages 2 Myanmar kyat volatility 3 Sales reduction 4 Did not experience any challenges 5 C. Impacts on Sales 1. Comparing this establishment’s sales for the last completed month with the same period last year, did the sales? (c2) Increase 1 Remain the same 2 Go to question c3 Decrease 3 Don’t know (spontaneous) -9 Go to question c3 Percent Increased by how much? (c2a) Percent Decreased by how much? (c2b) 2. Comparing this establishment’s profit for the last completed month with the same period last year, did profit? (c3) Profit Increase 1 Remain the same 2 Go to question c4 Decrease 3 Don’t know (spontaneous) -9 Go to question c4 Percent Increased by how much? (c3a) Decreased by how much? (c3b) 3. Did this establishment increase the prices of products or services in the past three months? (c4) Yes 1 No 2 Skip subsequent questions and go to question c7 Don’t know (spontaneous) -9 Percent Increased by how much? (c4a) 4. What was the major decision to increase prices? (c6) [Instruction: Ask only if c4=1]. Code To cover higher costs due to an increase in 1 supply, intermediate and input prices To cover higher costs due to an increase in 2 operation cost To follow industry trends as competitors 3 increased prices To boost revenue 4 Others (Specify) 5. Does this establishment plan to increase the prices of products or services in the next three months? [Instruction: Ask only if c4=2] Yes 1 No 2 Don’t know (spontaneous) -9 6. Which of the following is the sales method used most often by this establishment for sales in the last completed month? (c8) [Select top 3 methods] Yes No Sales at your business premises or based on in- 1 2 person or face-to-face visits (c8a) Sales through SMS and phone calls (c8b) 1 2 Sales through email orders (c8c) 1 2 Sales through social media platforms (c8d) 1 2 Sales through external digital platforms such as 1 2 shop.com.mm or e-commerce applications (c8e) Sales through an internal e-commerce platform 1 2 (or the establishment’s owned website) (c8f) Others (c8g) Please specify 7. Which of the following is the payment method for transactions most often used by this establishment in the last completed month? (c8) [Select top 3 methods] Yes No Exchange of goods or services (c9a) 1 2 Cash (c9b) 1 2 Bank transfer in person at a bank (c9c) 1 2 Bank transfer through mobile or internet banking 1 2 (c9d) Prepaid card, Debit card, or Credit card (c9e) 1 2 Money transfer through mobile money apps such 1 2 as KBZPay, WavePay, etc. (c9f) Money transfer through platforms such as 1 2 Western Union (c9g) Others (c9h) Please specify D. Impacts on labor 1. How many employees did this establishment have in the last completed month? (d1) Number Number of full-time employees (d1a) Number of part-time employees (d1b) 2. What was the total share of female employees in the last completed month? (d2) Share Female full-time employees (d2a) Female part-time employees (d2b) 3. In the last completed month, how many full-time workers were: (d3) [Instruction: Insert 0 if none of the following activities happen] Number Don’t know (spontaneous) Hired (male) (d3a) -9 Hired (female) (d3b) -9 Laid-off (male) (d3c) -9 Laid-off (female) (d3d) -9 Granted unpaid leave of absence (male) (d3e) -9 Granted unpaid leave of absence (female) (d3f) Had their salary, wages, or benefits reduced -9 (male) (d3g) Had their salary, wages, or benefits reduced -9 (female) (d3h) Had their hours reduced (male) (d3i) -9 Had their hours reduced (female) (d3j) -9 4. Does this establishment experience that employees arrive late due to poor public transport? (d4) [Instruction: Ask only if a25=2] Yes 1 No 2 Don’t know (spontaneous) -9 Not applicable -5 5. Does the establishment subsidize transportation expenses to employees for the increased rates in public transport? (d4) [Instruction: Ask only if a25=2] Yes 1 No 2 Don’t know (spontaneous) -9 Not applicable -5 E. Impacts on finance 1. Does this establishment have any outstanding loans from the following institutions/individuals? (e2) Yes No Don’t know (Spontaneous) Commercial banks (e2a) 1 2 -9 Non-banking financial institutions 1 2 -9 (microfinance institutions, credit cooperatives, credit unions, or finance companies) (e2b) Friends or family members (e2c) 1 2 -9 2. In the last completed month, did this establishment delay payment for more than one week? (e3) Yes No Don’t know (spontaneous) Suppliers (e3a) 1 2 -9 Tax authorities (e3b) 1 2 -9 Banks and non-bank financial institutions (e3c) 1 2 -9 Employees (for salary) (e3d) 1 2 -9 3. What was the main mechanism to deal with cash flow shortages in the last completed month? [Instruction: Ask only if b6d=2] (e4) Loans from commercial banks 1 Loans from non-banking financial institutions (microfinance 2 institutions, credit cooperatives, credit unions, or finance companies Loans from friends or family 4 Delaying payments to suppliers/workers/authorities 5 Don’t know (spontaneous) -9 4. How long (in months) will your establishment be able to service its debt/s in the current situation? [Instruction: Ask only if b6d=2] (e5) Number Months Don’t know (Spontaneous) -9 5. Why did this establishment not have outstanding loans? [instruction: Ask only if e2a=2, e2b=2 and e2c=2, and select all that apply] Yes No Don’t know (spontaneous) This establishment can pay all outstanding 1 2 -9 loans on time (e6a) This establishment has enough savings to 1 2 -9 finance expenses (e6b) This establishment has never had access to 1 2 -9 finance through formal and informal channels (e6c) This establishment no longer needs loans due 1 2 -9 to reduced production (e6d) This establishment cannot access any new loans 1 2 -9 (e6e) Others (specify) (e6f) 1 2 -9 F. Response and resilience for business continuity 1. How confident are you that this establishment can remain open for the next month with your current cash flow? (g1) Not very confident 1 Not confident 2 Neutral 3 Confident 4 Very confident 5 2. If the current situation does not improve, how likely is it that this establishment will need to close business permanently in the next three months? (g2) Not very likely 1 Not likely 2 Neutral 3 Likely 4 Very likely 5 3. Do you anticipate that this establishment will fall in arrears in its outstanding liabilities in the next three months? (g3) Yes 1 No 2 Don’t know (spontaneous) -9 4. Do you expect this establishment’s business to recover back to levels before Feb 2021 in the next six months? (g4) Yes 1 No 2 Go to question g6 Not applicable -5 Don’t know (spontaneous) -9 5. Looking ahead to the next three months, what is the expected change in sales that you anticipate for this establishment compared to the same period last year? (g5) Sales change (%) Don’t know -9 6. Looking ahead to the next three months, what is the expected change in employment that you anticipate for this establishment compared to the same period last year? (g6) Employment change (%) Don’t know -9 7. Looking ahead to the next three months, what is the expected change in investment that you anticipate for this establishment compared to the same period last year? (g7) Investment change (%) Don’t know -9 8. Which of the following would be the three most significant challenges for business operations in the next three months? (g8) Select only the top 3 challenges. Yes No Don’t know (spontaneous) Conflict escalation (g8a) 1 2 -9 Supply chain disruptions (g8b) 1 2 -9 Banking disruptions (g8c) 1 2 -9 Internet restrictions (g8d) 1 2 -9 Power outages (g8e) 1 2 -9 Myanmar kyat volatility (g8f) 1 2 -9 Limited marketing and advertising opportunities 1 2 -9 (g8g) Lack of demand (g8h) 1 2 -9 Uncertain business environment (g8i) 1 2 -9 Others Please specify G. Adjustment mechanisms 1. What adjustments did this establishment make for better business performance in the last completed month? (i1) Yes No Don’t know Not (spontaneous) Applicable Increased marketing and advertising 1 2 -9 -5 activities (i1a) Provided discounts and promotions (i1b) 1 2 -9 -5 Sourced cheaper intermediate inputs (i1c) 1 2 -9 -5 Invested in new machinery or equipment 1 2 -9 -5 (i1d) Shifted to new business activities unrelated 1 2 -9 -5 to my core business (i1e) Did not need any adjustments for 1 2 -9 -5 improvement (i1f) Other (i1g) Please specify 2. Have power outages been disruptive to business operations in the past three months? (i2) Yes 1 No 2 Skip the following question and Not applicable -5 go to question i4 Don’t know (spontaneous) -9 Did this establishment already manage power outages for business operations? (i2a) [Ask only if i2=1] Yes 1 No 2 Skip the following question Don’t know (spontaneous) -9 and go to question i3 How did this establishment manage power outages for business operations? (i2b) [Ask only if i2a=1] [Select all that applies] Yes No Not Applicable Invested in generators (i2ba) 1 2 -5 Invested in off-grid power systems such as solar, wind, or micro-hydro (i2bb) Moved to a location with better access to 1 2 -5 electricity (i2bc) Reduced operation hours (i2bd) 1 2 -5 Others (i2be) Please specify 3. How does this establishment plan to manage power outages for business operations if any adjustments have not been made? (i3) [Ask only if i2a=2] [Select all that applies] Yes No Not Applicable Invest in electric generators (i3a) 1 2 -5 Invest in off-grid power systems such as solar, wind, or micro-hydro (i3b) Move to a location with better access to 1 2 -5 electricity (i3c) Reduce operation hours (i3d) 1 2 -5 No plan yet (i3e) 1 2 -5 Others (i3f) Please specify 4. Does this establishment plan to invest and expand its business in 2022? (i4) Yes 1 Continue to question i4a No 2 Go to question i5 Don’t know (spontaneous) -9 Which of the following does this establishment plan to do? (i4a) Select all that applies [Instruction: Ask only if i4=1] Yes No Don’t know Not (spontaneous) Applicable Open new branches domestically (i4a_a) 1 2 -9 -5 Launch new products or services (i4a_b) 1 2 -9 -5 Invest in new businesses (i4a_c) 1 2 -9 -5 Hire more employees (i4a_d) 1 2 -9 -5 Expand into a foreign market (i4a_e) 1 2 -9 -5 Renovate buildings (i4a_f) 1 2 -9 -5 Upgrade machinery or equipment (i4a_g) 1 2 -9 -5 Others (i4a_h) Please specify If this establishment has already initiated planned business expansion and investment, what proportion of planned activities were implemented? (i4b) [Instruction: Ask only if i4=1] Percent (%) Don’t know (spontaneous) -9 5. Has this establishment experienced any of the following challenges with online and digital financial services in the last completed month? (i5) [instruction: Ask only if a20=1, and select all that applies] Yes No Not Applicable Lack of IT capacity, skills, or technology within 1 2 -5 the business (i5a) High prices charged by online platforms, 1 2 -5 marketplaces, or sellers (i5b) High prices for online advertising (i5c) 1 2 -5 Did not experience any challenges selling goods 1 2 -5 or services online (i5d) Limited internet access (i5e) 1 2 -5 Disrupted electronic banking services (i5f) 1 2 -5 Others (i5g) Please specify 6. Does this establishment plan to make any of the following adjustments if the situation does not improve in the next three months? (i6) Yes No Don’t know Not (spontaneous) Applicable Reduce the number of staff (i6a) 1 2 -9 -5 Reduce salaries (i6b) 1 2 -9 -5 Reduce operation hours (i6c) 1 2 -9 -5 Source cheaper inputs or raw materials 1 2 -9 -5 (i6d) Borrow money to cover the cost (i6e) 1 2 -9 -5 Temporarily close the business (i6f) 1 2 -9 -5 Permanently close the business (i6g) 1 2 -9 -5 Shift to new business activities unrelated to 1 2 -9 -5 my core business (i6h) Others (i6i) Please specify H. Tax payment and regulatory environment 1. Did this establishment pay any taxes to the authorities in the past three months? (j1) Yes 1 Go to the next question No 2 Go to question j4 Not applicable -5 Don’t know (spontaneous) -9 2. Which of the following taxes did you pay in the past three months? (j2) [Instruction: Ask only if j1=1] Yes No Don’t know Not (spontaneous) Applicable Corporate income taxes (j2a) 1 2 -9 -5 Commercial tax (j2b) 1 2 -9 -5 Specific good tax (j2c) 1 2 -9 -5 Customs duties (j2d) 1 2 -9 -5 Registration tax (j2e) 1 2 -9 -5 Payroll tax (j2f) 1 2 -9 -5 Stamp duties (j2g) 1 2 -9 -5 Others (j2h) Please specify 3. Compared to the same period last year, did this establishment’s estimated tax payments to the authorities _____ in the past three months? (j3) [Instruction: Ask only if j1=1] Increase 1 Go to question (j3b) Remain the same 2 Go to question (j4) Decrease 3 Go to question (j3a) Don’t know (spontaneous) -9 Go to question (j4) Not applicable -5 Go to question (j4) Percent Decreased by how much? (j3a) Increased by how much? (j3b) 4. Did this establishment file taxes in the past three months? (j4) Yes 1 Go to the next question No 2 Go to question j6 Not applicable -5 Don’t know (spontaneous) -9 5. How was the ease of filing and paying taxes in the past three months? (j5) [Instruction: Ask only if j1=1 or j4=1] Improved 1 Worsened 2 Remained the same 3 Don’t know (spontaneous) -9 What are the reasons for worsened ease of filing and paying taxes? (j5a) [Instruction: Ask only if j5=2, and select all that applies] Yes No Don’t know Not (spontaneous) Applicable Increased fees/charges (j5aa) 1 2 -9 -5 Increased informal cost (j5ab) 1 2 -9 -5 Slower service (j5ac) 1 2 -9 -5 Unresponsive service (j5ad) 1 2 -9 -5 More paperwork (j5ae) 1 2 -9 -5 Increased security concerns (j5af) 1 2 -9 -5 Others (j5ag) Please specify Approximately how much did the cost increase in the past three months – compared to the same period last year? (j5b) [Instruction: Ask only if j5aa=1 or j5ab=1] Percent (%) Don’t know (Spontaneous) -9 6. Did this establishment require any customs clearance in the past three months?5 (j6) Yes 1 Go to the next question No 2 Go to question j8 Don’t know (spontaneous) -9 7. How was the ease of customs clearances and making customs payments in the past three months? (j7) Improved 1 Go to question j8 Worsened 2 Go to the next question Remained the same 3 Go to question j8 5 This applies not only to firms that export or import but also those firms that imports parts, equipment, machineries, or anything required for their own business operation – even if it is occasionally. Don’t know (spontaneous) -9 What are the reasons for worsened ease of customs clearance and making customs payments? (j7a) [Instruction: Ask only if j7=2, and select all that applies] Yes No Don’t know Not (spontaneous) Applicable Increased fees/charges (j7aa) 1 2 -9 -5 Increased informal cost (j7ab) 1 2 -9 -5 Slower service (j7ac) 1 2 -9 -5 Unresponsive service (j7ad) 1 2 -9 -5 More paperwork (j7ae) 1 2 -9 -5 Increased security concerned (j7af) 1 2 -9 -5 Others (j7a_g) Please specify Approximately how much did the cost increase in the past three months – compared to the same period last year? (j7b) [Instruction: Ask only if j7a_a=1 or j7a_b=1] Percent (%) Don’t know (Spontaneous) -9 8. Did your establishment acquire any business-related license in the past three months? (j8) Yes 1 Go to the next question No 2 Skip the next question, and Don’t know (spontaneous) -9 the survey ends here 9. How was the ease of acquiring any business-related license in the past three months?6 (j9) Improved 1 Skip the next question, and the survey ends here Worsened 2 Go to the next question Remained the same 3 Skip the next question, and the Don’t know (spontaneous) -9 survey ends here What are the reasons for worsened ease of acquiring a business license? (j9a) [Instruction: Ask only if j9=2, and select all that applies] Yes No Don’t know Not (spontaneous) Applicable Increased fees/charge (j9aa) 1 2 -9 -5 Increased informal cost (j9ab) 1 2 -9 -5 Slower service (j9ac) 1 2 -9 -5 Unresponsive service (j9ad) 1 2 -9 -5 More paperwork (j9ae) 1 2 -9 -5 Increased security concerned (j9af) 1 2 -9 -5 6 License implies to all sorts of license such as imports/exports license, alcohol license for restaurants (that sells alcohol) or license from municipal government such as YCDC, not just business or company registration license. Others (j9ag) Please specify Approximately how much did the cost increase in the past three months – compared to the same period last year? (j9b) [Instruction: Ask only if j9a_a=1 or j9a_b=1] Percent (%) Don’t know (Spontaneous) -9 The survey ends here. I would like to gather a few final details. Thank you for your time and cooperation. I. Control Questions 1. The name of the respondent (k1) [Instruction: Select “Not applicable” if respondents do not feel comfortable providing their names] Name Not applicable -5 2. What option best reflects your main occupation in this establishment? (k2) [Instruction: Select “Not applicable” if respondents do not feel comfortable providing their titles] Owner, CEO, or CFO 1 Manager 2 Accountant or lawyer 3 Other Please specify Not applicable -5 3. Contact information (k3) [Instruction: Select “Not applicable” if respondents do not feel comfortable providing contact info details] Email/Phone number Not applicable Email (k3a) Insert email address -5 Phone number (k3b) Insert phone number -5 4. Would you like to participate in future rounds of the survey? (k4) Yes 1 No 2 5. Number of calls attempted (k5) [Instruction: To be completed by interviewer/supervisor) Number of calls attempted 6. Date and time of the interview (end) [Instruction: To be completed by interviewer/supervisor) Date (End_01) Time (End_02)