Yangon port handles more cargos this year despite pandemic

Although the flow of the trade via air route and land route dropped in pandemic period, the Yangon port took more cargos via sea route this year compared to last year, said an official from Myanmar Port Authority (MPA).

“Despite the coronavirus outbreak across the country, Yangon port handled over 1.5 million tonnes of cargos from March to September in 2020 compared to 2019. So, the sea route seems to have a better flow of goods,” said U Sein Win, assistant general manager from Agent Department, MPA. From March to September 2020, there were a total of 6,900,040 tonnes of cargos in Yangon port, an increase of 1,578,843 tonnes compared to last year. In the same period of 2019, there were a total of 5,321,197 tonnes of cargos in the port, according to the official data from MPA.

However, a total of 1,074 cargo ships were docked in 2020, a drop of 27 ships in 2020 compared to the previous year. In 2019, there were 1,101 cargo ships docked in Yangon port. “About 85 per cent of Myanmar’s export and import is mainly conducted by the sea route. During the pandemic period, the export and import via air route and land route are suspended, and the export and import are conducted only via sea route,” said U Win Myint Aung, deputy director-general of Myanmar Maritime Department, MPA.

Source: The Global New Light of Myanmar

121263413_179592943745182_6962053353638428254_o

Consumer Behavior Trends of Food Industry AFTER 2020

Date: 24 October 2020

Time: 2pm – 4pm

Webinar: Online with Facebook Live

Host: Kitchen Hub

Venue: Zoom, Facebook Live Please register here: http://bit.ly/ConsumerBehaviorTRENDS

CONSUMER BEHAVIOR TRENDS OF FOOD INDUSTRY AFTER 2020

Webinar DescriptionConsumer behaviours had been significantly shifting in Myanmar and buying trends for food products had been changing over the years. Modern retail sectors are booming and with the current situation in 2020, consumers had been shopping online for their daily food consumption needs. It’s notable that some of the highlighted consumer trends in 2020 include criteria such as packaging, healthy and fresh.In this webinar, we will be discussing the consumer behaviour changes after 2020 and highlighting the potential food products and trends including how people will choose and purchase food products. We’ll be discussing modern packaging solutions, positioning your products at both retail and e-commerce platforms and most importantly creating new products to fit in the upcoming food product trends. You’ll be able to learn how to innovate your food products and adapt it for 2020 and beyond.

Date: 24.10.2020
Time: 2pm – 4pm
Venue: Zoom, Facebook LivePlease register here :
http://bit.ly/ConsumerBehaviorTRENDS

Forced collection of loans by microfinance firms to face legal action

Microfinance Supervisory Committee (MSC) will take legal action against the microfinance institutions if they forcibly collect loans in the pandemic period, according to the committee’s announcement released on 13 October. The committee also announced that the microfinance businesses should not forcibly collect the loans plus interests when the members’ businesses and income are lower in the pandemic period, and they should only negotiate the date of repayment of the loans and interests.

The committee has also announced that if the members are forcibly asked to return the loans and interest, they are entitled to complain to the committee in detail mentioning the contact phone number or address. The committee will take legal action against the microfinance institutions under the Microfinance Law. The committee announced in April that the livelihood businesses and enterprises operating with the loans in COVID-19 period might be adversely affected by the economic impact caused by the pandemic. So, the institutions should not forcibly ask for repayment of the loans and interests.

In July, the committee issued an instruction that the institutions are allowed to collect the loans only from those who are ready to return the loans, and they need to provide the new loans or internal loans. They also need to negotiate re-fixing of the paying back period. There are many microfinance institutions in 252 townships across the country with 4.6 million loan takers.

Source: The Global New Light of Myanmar

yangon

YRIC clears $6.904 mln worth three enterprises from Viet Nam, ROK, China

The Yangon Region Investment Committee (YRIC), at a videoconference held on 14 October, has endorsed three foreign projects from Viet Nam, Republic of Korea and China. Those projects are to be brought in an estimated capital of US$6.904 million. Those enterprises will create 2,279 jobs. They will execute manufacturing of bags and garments on a Cutting, Making, and Packing (CMP) basis, and production and distribution of iron, steel and galvanised iron and building materials, according to the Directorate of Investment and Company Administration (Yangon Region), YRIC stated.

The Yangon Region Investment Committee (YRIC) has endorsed over 130 foreign investment projects with an estimated value of over $280 million in the last financial year 2019-2020, according to the Directorate of Investment and Company Administration. Manufacturing, hotels and tourism, other services, electricity and agricultural sectors pulled in the foreign investments. Majority of the investments went into the manufacturing industry, followed by other service and hotels and tourism industries.

To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, the British Virgin Islands and Seychelles are arriving in Yangon Region. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to grant permissions for local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million.

Source: The Global New Light of Myanmar

Myanmar coffee market declines sharply

The Myanmar coffee market is slumping on the back of ailing demand, which has persisted since March, when COVID-19 first hit the country. The domestic coffee maker relies heavily on coffee shops, and hotels for revenue and growth. However, domestic consumption has dropped by at least 70 percent since the end of the March due to the COVID-19 pandemic, according to the Myanmar Coffee Association.

The rate of sales at local shops has declined sharply. All the shops are closed due to the pandemic. Although the export market has held up well, it might also slow down in the coming year. Based on domestic coffee consumption trends, 90pc of the population drink ready-made coffee made with cheap imported coffee powders, and the rest of the population consumes steamed local coffee. In Myanmar, most coffee users pre-order the year’s supply and collect in advance.

COVID-19 broke out soon after they collected this year’s orders, which were made based on much higher consumption forecasts than what they are seeing in the market now. The purchase of local coffee beans will also be affected because domestic consumption and foreign orders might decline due to the aftermath of COVID-19 in the coming year, coffee entrepreneurs say.

Source: Myanmar Times

Water supply project from Dotthawadi River to start in 2021

Mandalay Pyigyitagon Water Supply Development Project with the purification of Dotthawadi river, jointly implemented by the Netherlands and Mandalay City Development Committee (MCDC), will commence only in early 2021, said U Saw Han, a member of MCDC. It is hard to carry out the project during the coronavirus crisis. The officials are also still negotiating it. The precautionary restriction measures and crowd restriction caused the project to suspend, he added. This project was initiated with the assistance of JICA grant in 2018 and covered five wards in Pyigyitagon Township. The remaining 13 communities will get water supply from Dotthawadi river water purification scheme.

The project will begin only in early 2021 due to the COVID-19 impacts, he stated. The project can cover 70 per cent of Pyigyitagon Township, with the Dutch grant of 29.96 million Euro and 29.96 million Euro loan from the Netherlands banks — FMO and ING, with the total project cost of 59.92 million Euro. In this project, construction of water treatment plant, pumping station, water storage lake, service water pipelines, household water connections, development of district meter area zone to reduce the water loss, and installation of water meter in Pyigyitagon Township are included. Under the project development, residents in 70 per cent of the Pyigyitagon town area will receive good and clean water.

The Netherlands and Myanmar signed the grant agreement for Pyigyitagon Water Supply Development Project on 9 June 2020 in the ways of the virtual signing event. Mr Huub Buise, Deputy Ambassador, Mr Astrid Raaphorst, Director of NL Process and Legal Affair, the Netherlands Enterprise Agency (RVO), Daw Si Si Pyone, Director General, Treasury Department under the Ministry of Planning, Finance and Industry and Dr Ye Lwin, Mayor of the Mandalay City signed the grant agreement, according to the Netherlands Embassy to Myanmar.

Source: The Global New Light of Myanmar

download (3)

Shan-Yangon transport cost double amidst COVID-19 resurgence

The transport cost for commodities from Shan State to Yangon Region has increased more than double amid the coronavirus crisis, said U Kyaw Thu, secretary of the Myanmar Fruit, Flower and Vegetable Producer and Exporter Association (MFVP). At present, the truck fare rates remarkably soar to K1.6 million from the previous rate of K600,000-650,000, he continued. “We can steadily transport the goods at the previous rate of K600,000-650,000. Now, the truck drivers are price markers,” he stressed. Following the double increase rate, only 20 to 30 trucks are seen entering Thirimingala Market of Yangon in the recent days.

They see the entry of over 20 trucks only these days. Before the coronavirus outbreak and the period before the resurgence of coronavirus, hundreds of trucks are flowing into the region,. The vegetables such as tomato, cabbage, cauliflower, broccoli, bell pepper, eggplant, potato and onion are abundant in Shan State. However, the local products cannot easily be transported to the other regions owing to high truck fares and other transport difficulties. As a result, the commodity prices are so high for consumers, according to MFVP.

The truck operators raised the fares. Consequently, it directly hurts consumers. Nevertheless, the farmers do not even get handsome profit and benefit from that. The consumer price is unexpectedly ten times higher than the low introductory rate of farmers. Transport problem must be resolved to control the commodity rate. If not that, the price will continue rising. The tomato is priced only K300 per viss (a viss equals to 1.6 kg), whereas the prevailing price is K3,000 per viss in markets in Yangon. Similarly, a cabbage fetches only K300-400 in the farm, yet, the price touched a high of K1,500 in Yangon. The cost of a cauliflower increased to K1,000 in Yangon from K150 on the farm.

Source: The Global New Light of Myanmar

1466480881230_MyanmarRMIP201627_475010

CMP raw materials import plunges to $2.17 bln in 2019-2020FY

CMP raw materials import has registered at US$2.17 billion in the past financial year 2019-2020, which plunged from $2.37 billion recorded in the 2018-2019FY, according to the Ministry of Commerce. Myanmar manufacturing sector has 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 COVID-19 negative impacts, leaving thousands of workers unemployed. The COVID-19 badly batters the labor-intensive enterprises, said an official of the Directorate of Investment and Company Administration.

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 in the last FY dropped by $197.7 million compared to a year-ago period. The CMP garment sector in Myanmar has been hit hard by the coronavirus impacts amid the global demand slump, said an official of Myanmar Garment Manufacturers Association. Supply chain disruptions and cancelling customer orders following the coronavirus outbreak hurt the global textile industry. Similarly, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is bracing for downward trend owing to the cancellation of order from the European countries and suspension of the trade by western countries amid the pandemic.

Exports of garments manufactured under the cut-make-pack (CMP) system were valued about US$4 billion around the past eleven months in the last financial year 2019-2020, said an official of the Ministry of Commerce. Since an outbreak like Covid-19 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

Yangon calls for EOI submissions for New Yangon industrial park

The Yangon City Development Committee (YCDC) under the Yangon Region Government has invited expressions of interest (EOI) for the development of an industrial park in New Yangon City, according to the Swiss Challenge Tender Committee on October 15. This follows an unsolicited proposal to develop the industrial park by State-owned China Communications Construction Company (CCCC). The New Yangon City Development had come under fire for signing an agreement with CCCC without calling a tender. The developer said it would carry out a Swiss challenge instead, allowing firms to challenge CCCC’s bid.

A Swiss challenge requires the government to publish the bid and invite third parties to match or counter-propose a better deal. The Swiss Challenge Tender Committee will call a tender to select a competing developer for the project, which includes development of a water treatment plant, wastewater treatment plant, power plant, and commercial and residential land area within the industrial park. It also involve construction of the Yangon River Bridge, municipal roads and municipal infrastructure for the resettlement areas. Interested competitors are required to submit an EOI by October 22. Qualified entities that have been shortlisted will be provided with information about the Request for Proposal (RFP) by the Tender Committee no later than seven working days after the deadline for EOI submission.

The RFP will contain further details on the scope of work, documents to be submitted by applicants and a timeframe for the Swiss challenge tender process. On October 14, the Public-Private Partnership (PPP) Center under the Ministry of Planning, Finance and Industry issued order involving the tender process for unsolicited project proposals without government invitation. Under the new order, unsolicited project proposals worth more than K2 billion will be processed under the procedures listed under order. If the unsolicited project proposal is accepted and beneficial for the State, the government has three options – to proceed with a Swiss challenge, standard tender process or direct negotiation for implementation.

Source: Myanmar Times

Second wave of COVID-19 hits Myanmar microfinance sector

The Microfinance Business Supervisory Committee in October 13 repeated instructions for microfinance institutions (MFIs) not to force borrowers who are unable repay their debts to do so amid the current period of declining business and income. It is the third time of the committee has issued the statement since COVID-19 first struck Myanmar in March. The latest statement comes amid worsening economic conditions as the number of COVID-19 cases continues to rise daily.

MFIs in Myanmar are once again facing increasing difficulties collecting loan repayments from borrowers affected by COVID-19. The MFIs had been able resume their business of lending in May and June. But operations were disrupted again from late August onwards as the number of cases began to spike once more. With factories told to close in late September and businesses told to restrict operations, the number of defaults has begun spiking again in recent weeks. At the same time, the MFIs are also becoming more cautions of who they lend to, resulting in less business overall. The microfinance business is now just 10 percent of levels seen in May and June, when business had started to pick up from the first wave of COVID-19.

The statement is just a warning to MFIs not to collect by force as the clientele are mostly those who are directly affected by COVID-19 and not able to repay their loans at this time. MFIs are still able to negotiate or work with their borrowers for loan repayment arrangements. The industry will cooperate with the government over the coming months while focusing efforts on resuming normal operations based on borrowers’ income situations. In July, the government provided K100 billion in short-term commercial loans to MFIs at interest rates not exceeding 9 percent with collateral through the State-owned Myanmar Economic Bank. There is a one year grace period.

Source: Myanmar Times