New bridge infrastructure planned in Ayeyarwady, Shan

The Pathein Bridge (2), which directly connects Pathein’s Mahabandoola Road with the west bank of Ngawun River in Ayeyarwady Region, will officially open for traffic in September. The bridge, which was constructed to accommodate rising traffic as a result of housing expansion by the river, was complete in July and stress tests were conducted last week. Passenger vehicles will be able to use bridge between 5am and 7pm before the official opening next month.

Construction of the 725-meter long Pathein Bridge (2) began in November 2018. The Ministry of Construction is now seeking approval from arliament to build a new bridge in Thanlwin, Shan State, using a €8.4 million loan from Austria. The objective of the loan is to buy good quality, high-tech European products like cable-stayed bridge material, steel frames and accessories for necessary to build proper infrastructure. The current Thanlwin bridge, which connects Central Myanmar to Shan State, has been used since 1999, allowing it to accommodate only 16 tonnes of weight at a time compared to its original capacity of 30 tonnes. COnsequently, cargo from large 10-wheel trucks must be transferred to smaller vehicles to enable the goods to pass.

The entire process is too time consuming and not conducive for business. The new cable-stayed bridge will be 870 feet long and its maximum load capacity will be 60 tonnes.The loan, which is being granted by the Austrian Uni Credit Bank, interest-free and repayable within 28.5 years. This includes a 14-year grace period. The Bridges Department under Ministry of Construction completed 540 concrete bridges, 22 wooden bridges, 17 Bailey bridges, 86 cable-stayed bridges and 1,410 Box Culverts in the fourth year of this government’s term.

Source: Myanmar Times

Sesame prices possibly remain higher amidst China’s strong demand

The prices of sesame seeds are expected to remain higher on the back of strong demand from China even when the fresh sesame will be harvested in September. The prevailing price of sesame is pegged at K160,000-210,000 per bag depending on quality. The price significantly rose as against that in early July. The price is likely to fluctuate around K200,000 per bag during the harvest time. As the sesame stockpile is thin, there is no way of the price drop in the coming weeks. This year, high sesame producing regions of Myanmar (Magway, Mandalay and Sagaing regions) experienced low yield due to drought impacts. During the meantime, China high demand hiked the prices.

Myanmar increasingly sends sesame seeds to China market. The price fluctuates a bit. The gradual increase in sesame prices since last week of July has been attributed to high demand by China when the drought reduced crop yield in the country. The various varieties of sesame are priced good, especially black and white sesame varieties. Myanmar exports 90 per cent of sesame production to foreign markets. China is the leading buyer of Myanmar sesame, which is also shipped to markets in Japan, South Korea, China (Taipei), UK, Germany, the Netherlands, Greece, and Poland among the EU countries. The EU markets prefer organic-farming sesame seeds from Myanmar. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China buys various colored sesame seeds from the country.

The number of sesame acreages has increased in the country. Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the primary producer of sesame seeds. The seeds are also grown in Mandalay and Sagaing regions.
Of the cooking oil crops grown in Myanmar, the acreage under sesame is the highest, accounting for 51.3 per cent of the overall oil crop plantation.
The volume of sesame exports was registered at over 96,000 tonnes, worth $130 million, in the 2015-2016 financial years, 100,000 tonnes, worth $145 million, in 2016-2017FY; and, 120,000 tonnes, worth $147 million, in 2017-2018FY.

Source: The Global New Light of Myanmar

In this April 21, 2012 photo, young workers use sewing machines at a garment factory in Yangon, Myanmar. The European Union confirmed Monday, April 23, 2012, that it was suspending most of its sanctions against Myanmar to reward the country's recent wave of political reform. The suspension of trade sanctions could help revive the nation's industries, restoring some of the 80,000 garment industry jobs lost here over the past 10 years. (AP Photo/Sakchai Lalit)

CMP businesses-imported raw materials plummet to $1.87 bln as of 7 August

Imports of raw materials by CMP businesses have been valued at US$1.87 billion over the past ten months beginning in October in the 2019-2020 financial years, which plunged from $2 billion registered in the corresponding period of last financial year.  Myanmar’s manufacturing sector is mostly concentrated in garment and textiles produced on the cutting, making, and packing basis, and it contributes to the country’s GDP to a certain extent.At present, some CMP garment factories have shut down on the reason for the lack of raw materials due to the coronavirus negative impacts, leaving thousands of workers unemployed.

The pandemic badly batters the labour-intensive enterprises, said an official of the Directorate of Investment and Company Administration (DICA). To deal with the shortage of raw materials for the CMP garment factories in Myanmar, the Ministry of Commerce, the Myanmar Garment Manufacturers Association and the Chinese Embassy in Myanmar, the China Enterprise Chamber of Commerce in Myanmar (CECCM) have jointly imported raw materials through border trade channels and airlines.
However, import values of raw materials by CMP businesses dropped by $140.49 million compared with a year-ago period. The CMP garment sector, which contributes to 30 per cent of Myanmar’s export sector, is facing hardships because of the cancellation of order from the European countries and suspension of the trade by western countries amid the coronavirus pandemic. It can harm the export sector to a certain extent, highlighted the businesspersons. The CMP industry has emerged as very promising in the export sector.

The value of CMP exports was just $850 million in the 2015-2016 budget year, but it tripled within two years to reach $2.5 billion in the 2017-2018FY. During the last financial year 2018-2019, incomes from garment exports were over $1 billion higher than the previous budget year. Since an outbreak like COVID might happen in the future, it is necessary to prepare for a sufficient supply of raw materials. The public and private sectors will cooperate in setting up the supply chain on our sources, including weaving, knitting, dyeing, and sewing factories. Japan is the largest market for Myanmar apparel, followed by the European Union. The MGMA has more than 500 members, and garment factories in Myanmar, employing more than 500,000 workers. Investors prefer to invest in countries with inexpensive labor, such as Myanmar.

Source: The Global New Light of Myanmar

Myanmar-EU trade exceeds $2.57 bln in 9 months

Myanmar’s trade with members of the European Union (EU), during the first nine months of the current financial year 2019-2020, reached over US$2.57 billion, according to the statistics released by the Ministry of Commerce. Myanmar’s export to the EU surpassed its import, with $1.845 billion worth of export and $726.147 million valued import.Beyond regional trade regime, Myanmar has established trade links with EU members. Germany is the biggest trade partner in EU with the most considerable trade value, of $564.993 million with Myanmar, followed by Italy in second place, with about $349.166 million.

Spain was listed in third place with trade valued at $344.092 million, while The Netherlands stood at fourth place with an estimated trade value of $325.755 million. Myanmar’s trade with France reached about $243.332 million.The value of bilateral trade with Belgium was $201.416 million, while that with Poland was $133.847 million. Businesses with Denmark, Sweden and Finland, brought in more than $75 million each. Trade values with Austria, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Ireland, Latvia, Lithuania, Luxembourg, Malta, Portugal, Romania, Slovakia and Slovenia was less than $50 million each.The main export items are rice, pulses, tea leaf, coffee, garments on Cut-Make-Pack basis and fisheries.

Meanwhile, Myanmar imports machinery, data-processing equipment, electrical and optical goods, chemical products, motor vehicles and parts and pharmaceutical products, cosmetic, food and beverages and consumer goods. The CMP garment sector is now encountering hardships because of the cancellation of order from the European countries and suspension of the trade by western nations during the coronavirus crisis.Myanmar reinstated EU’s Generalized Scheme of Preference starting from 19 July 2013. Myanmar can enjoy GSP for export of fisheries, rice, pulses, agro products, bamboo and rattan finished products, forestry products, apparels and finished industrial goods. Nevertheless, the EU imposed a three-year tariff on Indica rice (long-grain rice) imported from Myanmar and Cambodia starting from 18 January 2019.

Source: The Global New Light of Myanmar

Tourist arrival drops in Myanmar by 65 pc as of July 2020

The tourist arrival in Myanmar has dropped by 65 per cent from January to July 2020 because of the global coronavirus outbreak, according to the data released by the Ministry of Hotels and Tourism.Myanmar received a total of 852,432 foreign visitors in the first seven months of 2020, a decreaseof 1.6 million visitors. The same period of last year, the number of tourists who entered the country stood at 2.4 million, according to the Ministry of Hotels and Tourism.

As of July 2020, a total of 324,329 tourists arrived in Myanmar via the international airports, 889 tourists came to the country via cruise liners, and 40,415 tourists entered through land borders with visa. Besides, 486,799 tourists entered Myanmar via the border crosses.The number of tourist arrival by flights declined by 67 per cent, by ships declined by 85 per cent, by land borders with visa declined by 43 per cent and by cross-border passes declined by 66 percent.Last years, the majority of visitors were from China followed by Thailand, Japan, South Korea, Singapore and Viet Nam. Citizens of the United States, France, Britain, Germany, Italy and Spain also visited Myanmar.

This year, the foreign visitors stopped travelling and lost 72 per cent from China, 63 per cent from Thailand, 72 per cent from South Korea, 72 per cent from Singapore and 68 per cent from Viet Nam.Tourists have cancelled their trips, and the national airline flights have also suspended their operations as the coronavirus has spread around the world. The countries have also denied visas to the tourists.Myanmar tourism sector like that of other countries around the world has been severely affected by the pandemic. Myanmar welcomed 4.6 million tourists in 2015, 2.91 million in 2016, 3.44 million in 2017, 3.55 million in 2018, and 4.4 million in 2019.

Source: The Global New Light of Myanmar

UMFCCI Webinar Series

Title: New Beginnings through Renewed Partnerships Episode (11)

Date: 27 August 2020 , 4 P.M

Speaker:

  • U Khin Maung Win ( President, American Chamber of Commerce Myanmar)
  • Mr. Peter Beynon ( Chairman, British Chamber of Commerce of Myanmar)
  • Ms. Sarah Lubeigt ( President, French Myanmar Chamber of Commerce and Industry)

Moderator: U Moe Kyaw (CEC, UMFCCI)

Contact address: pr@umfcci.com.mm

Organizer: UMFCCI

Pressure eases on Myanmar inflation due to declining consumer demand

Declining consumer spending and demand as a result of COVID-19 has suppressed inflation levels in Myanmar. Inflationary pressure first showed signs of easing in March, after the first cases of the coronavirus were reported in Myanmar. Inflation has continued to decline over the past three months, settling at 7.9 percent in June. The trend of falling inflation is similar to the rest of the world. Consumers all over the world and in Myanmar are spending less due to COVID-19 restrictions. Domestic consumer demand is falling and this is resulting in softer inflation.

Inflation in Myanmar had in fact been on a steady rise before the pandemic. Local businesses have suffered as a result of poor consumer demand. Due to COVID-19, the majority of Myanmar firms have experienced lower sales and cash flow shortages, resulting in reduced access to credit needed to support operations. The survey also revealed that 16 percent of firms had temporarily closed their operations for an average of eight weeks as a results of COVID-19.

As a result, Myanmar’s inflation is forecast to fall further this year and remain at around 6pc until next year. Meanwhile, GDP growth is forecast to drop from 6.8 pc in fiscal 2018-19 to just 1.8pc in the current fiscal year. The World Bank’s forecasts are more dire, with GDP expected to slump to just 0.5pc last year. However, if the domestic spread of the coronavirus is brought under control and the global economy recovers swiftly, GDP could recover as soon as next year, reaching 6pc according to ADB and 7.2pc according to the World Bank.

Source: Myanmar Times