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External trade exceeds $36 bln as of 25 September

Myanmar’s external trade between 1 October and 25 September in the 2019-2020 financial year touched a high of US$36.2 billion, an increase of $1.889 billion compared with the corresponding period of the 2018-2019FY, according to the Ministry of Commerce. During the same period in the previous FY, trade stood at $34.3 billion, according to data released by the ministry. Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government.

Myanmar has already reached total trade value target of $34 billion for the current FY, said an official from the ministry. In the current FY, both maritime and border trade recorded an increase compared with the year-ago period, with exports estimated at over $17.37 billion and imports valued at $18.8 billion. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. The Ministry of Commerce is endeavoring to boost export, enhance value-added production, reduce export barriers and provide trade financing services.

Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach the export target at US$16 billion and import at $18 billion. Myanmar’s external trade between FY2016-2017 and FY2019-2020 (as of 21 August) under the incumbent government period touched a high of US$149.67 billion, comprising exports worth $68.53 billion and imports valued $811 billion, according to the statistics released by the Ministry of Commerce.

Source: The Global New Light of Myanmar

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KBZ Bank partners Tranglo to facilitate inbound foreign remittance

Myanmar’s Kanbawza (KBZ) Bank and Malaysia-based cross-border payments provider Tranglo have formed a remittance partnership to facilitate inbound money transfers directly into the accounts of KBZ Bank customers. The service, which has been approved by the Central Bank of Myanmar, allows Myanmar citizens working in Singapore, Malaysia and South Korea to send money home more cheaply and efficiently without the need to go through traditional or informal means of remitting money, which can be expensive, troublesome and risky.

Beneficiaries will receive the money in real-time in their current, savings deposit or call deposit accounts with KBZ Bank and be able to withdraw the funds via ATM or access the money through KBZPay. Those who wish to remit money to Myanmar through Tranglo can do so at Tranglo’s counters in Malaysia or the branches of its partners such as GPL and MaxMoney in Malaysia, SlidesSG in Singapore, or GME in South Korea. The maximum amount for each remittance transaction to Myanmar is the equivalent of US$5000 in the local kyat.

With the KBZ Bank Partnership, Tranglo will extend its global network – which now includes countries such as China, Indonesia and Singapore – to include Myanmar. For Tranglo, Myanmar represents a significant market in an increasingly competitive remittance industry. The World Bank estimates that more than US$3 billion was formally remitted by Myanmar migrant workers in 2019, approximately 4.6 percent of Myanmar’s GDP. This does not include the funds that are informally remitted through brokers or hand-carried back home.

Source: Myanmar Times

India, Myanmar agree to open Sittwe Port in 2021

India and Myanmar have agreed to work towards launching the Sittwe Port in Rakhine State in the first quarter of 2021, according to announcements by the Myanmar government and the Ministry of External Affairs of India. The developments were made during the visit of an Indian government delegation to Myanmar. The Sittwe Port is a major part of the Kaladan Multi-Modal Transit Transport Project funded by India. It aims to correct the Seaport of Kolkata in India to Sittwe by sea. It will then link the Sittwe seaport to Paletwa, Chin State, by inland waterway and from there connect further to Mizoram in India by road.

The project comprises three stretches which include shipping, inland water and road transport. The longest among these stretch is the shipping segment from Kolkata to the Sittwe Port. India has already completed the development of Sittwe Port and Inland Water Transport terminals at Sittwe and Paletwa. The port and inland waterway terminal operator and maintenance contractor has also been selected. Mean while, the road from Paletwa to Zorinpui in Mizoram, India is still under construction. The total project cost of the Kaladan Multi-Modal Transit Transport Project, which is expected to boost trade and commerce and contribute to development in Rakhine and Chin, is estimated at around US$484 million. Besides that project, both sides also discussed progress in the ongoing Indian-assisted infrastructure projects, including the Trialateral Highway.

The two countries have also explored new avenues of cooperation, including fresh investments in oil and gas and power, infrastructure, and pharmaceuticals. Meanwhile, both sides agreed to deepen cooperation to overcome the challenges posed by the COVID-19 pandemic, with the Indian delegation presenting 3000 vials of Remdesivir, an antiviral treatment medication. Notably, India indicated its willingness to priorities Myanmar in the sharing of viable vaccines aas and when these become available.

Source: Myanmar Times

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Fishery exports soar to over $847 mln in 2019-2020FY

Export earnings from the fisheries sector during the period between 1 October and 25 September in the financial year 2019-2020 reached US$847.5 million, an increase of $125.65 million from the year-ago period. The figures stood at just $721.865 million during a-year ago period. During the current financial year, the fishery exports are expected to reach a record high. Myanmar Fisheries Federation (MFF) expected to earn more than $800 million from fishery exports in the FY2019-2020, and it got a target. Myanmar exports fisheries products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union. Myanmar’s fishery exports have slightly declined over the past three months, owing to the COVID-19 impacts. However, Myanmar witnessed a large volume of exports in the post-pandemic period.

The MFF is making concerted efforts to increase fishery export earnings by developing fish farming lakes which meet international standards and adopting advanced fishing techniques. To ensure food safety, the foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates. The MFF is working with fish farmers, processors, and the Fisheries Department under the Ministry of Agriculture, Livestock, and Irrigation to develop the GAqP system. Myanmar exported 340,000 tonnes of fishery products worth $530 million in the 2013-2014FY, 330,000 tonnes worth $480 million in the 2014-2015FY, 360,000 tonnes worth $500 million in the 2015-2016FY, 430,000 tonnes worth $600 million in the 2016-2017FY, 560,000 tonnes worth $700 million in the 2017-2018FY, and over 580,000 tonnes in the 2018-2019FY.

Myanmar’s economy is more dependent on the agricultural sector to a large extent. Also, the fisheries sector contributes a lot to the national gross domestic product (GDP). Its fishery production, including shrimps and saltwater and freshwater fish, is far better than the regional countries. If the state can boost processing technology, it will contribute to the country’s economy and earn more income for those stakeholders in the supply chain, Yangon Region Fisheries Department stated.

Source: The Global New Light of Myanmar

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No recovery in sight for Myanmar family businesses: World Bank

Over 85 percent of family-run firms and small and medium size enterprises (SMEs) in Myanmar saw no recovery in business in the months up to June because of COVID-19, according to a World Bank report. The data was gathered on a World Bank Myanmar COVID-19 Monitoring Platform in March and May, which surveyed around 500 businesses from 12 sectors in six areas including Yangon Region, Mandalay Region and Chin State.

The majority of firms surveyed are in the manufacturing and service sectors, while others are from agriculture and trade. Of all the companies surveyed, 85pc said business had yet to recover from the drop in demand. In fact, the quantum of losses had widened in May, with 81pc of participants saying losses had widened compared to 69pc in March. Businesses in Yangon appear to have suffered the most, with 90pc saying they were negatively impacted by COVID-19. And while 67pc of the businesses said they understand the government’s policies and restrictions amid the pandemic, only 13pc are complying with them.

A third and fourth survey was also conducted in August and September. With most SMEs underwater, the government has amassed a K100 billion COVID-19 fund to be distributed as 12-month, low-interest loans to selected businesses. Between 3000 and 4000 SMEs have already received financial aid. Funds have also been coming from the Japan International Cooperation Agency (JICA), which is disbursing ¥15 billion (K190 billion) in funds under an emergency two-step loan program with state-run Myanmar Economic Bank to help SMEs in Myanmar.

The third tranche of funds is now being approved for distribution and officials in charge will priorities undeveloped areas like Chin State, Kachin State, Kayah State and Tanintharyi Region. Loans of up to K500 million will be earmarked for businesses in these areas. The JICA two-step loan will be given out to SMEs via 11 private banks which, in turn, borrowed from Myanmar Economic Bank. The loan term is five years and interest rates are set by the Central Bank.

Source: Myanmar Times

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YSX trade volume drops to lowest in September

The volume of shares traded on the Yangon Stock Exchange (YSX) in September sank to the lowest level of 85,237 shares, yet the value slightly rose to K838.6 million against August’s rate due to the increase in share prices, according to YSX’s monthly report. The trading volume last month plunged from 118,850 shares registered in August, the statistics indicated. The stock markets worldwide have reported their largest declines since the 2008 financial crisis. Similarly, the local equities market is also scared by the COVID-19 crash, a market observer points out.

In January 2020, 196,836 shares worth K1.25 billion were traded on the exchange while 188,919 shares, with estimated value of K1.48 billion were traded on the business in February and 228,913 shares valued K1.42 billion were traded in March respectively. It touched the lowest of K902 million with 173,808 shares in April. It rose to K1.2 billion with 200,416 shares being traded in May. The share volumes traded on the exchange surged to 221,682 in June, with estimated value K1.3 billion and then, it fell to $1 billion with 125,137 shares in July. Next, the Securities and Exchange Commission of Myanmar (SECM) allowed foreigners to invest in the local equity market in March 2020. Foreigners have held 53,850 shares in the equity market as of 2 October. In September, the share prices of the listed companies on the exchange, except EFR, also showed an increase compared with August’s prices. The share prices of FMI were closed at K10,000 per unit, MTSH at K3,700, MCB at K8,000, FPB at K22,5000, TMH at K2,700 and EFR at K3,000 respectively.

The YSX was launched three years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment seminars. To boost the trading, the YSX had doubled its stock trade matching time from two to four per day last year. The exchange launched seven times matching per day on 26 March 2020. Since 2017, it has held promotional events to attract new investors and encourage existing investors to trade more actively. The stock exchange has also sought the government’s support to get more public companies to participate in the stock market and help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge. A total of 2.4 million shares worth K13.39 billion were traded on the YSX in 2019, a significant increase compared to the previous year, according to the annual report released by the exchange. 

Source: The Global New Light of Myanmar

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Supportive service system to benefit local entrepreneurs

Myantrade will set up a supportive service system for the local entrepreneurs, according to an officer from the organization. To set a milestone of the business support in Myanmar, the Myanmar Trade Promotion Organization provided advanced trade information service and management technique pieces of training to some 40 government officials from Myantrade headquarters and regional trade centres and 15 Myanmar commercial trade attaches from foreign countries.

The two-day training that started from 22 to 24 September is part of the larger initiative aims to upgrade the availability and accuracy of businesses, market and trade information available to the local small and medium-sized enterprises (SMEs) which want to reach foreign markets. The training gave Myantrade’s trade information officers the practical skills on how to analyze trade and market information resources. Providing reliable and timely trade information will enable the officers to assist their small businesses better to make them competitive in the global markets using up to date market intelligence. So, the exporters can get information safely online during COVID-19 crisis.

Embracing these new tools and methodologies can improve our capacity to provide modern and effective information services to everyone interested in trading. Myantrade is the Trade Promotion Organization of Myanmar which is aimed at promoting the trade and export of Myanmar through the building of the capacities of the local companies to make effective competition in the regional and global markets. Moreover, Myantrade aims to tag the label of “Made in Myanmar” brand on Myanmar’s goods and services.

Source: The Global New Light of Myanmar

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Myanmar Investment Promotion Plan (2021-2022), which aims to draw USD 8.5bln investment, has to be re-evaluated due to COVID-19

According to the Myanmar Investment Promotion Plan, foreign investment is expected to reach $ 8.5 billion from the 2021-2022 fiscal year, but due to the COVID-19 outbreak, those targets will be reconsidered, according to the Directorate of Investment and Company Administration. Starting from the 2021-2022 financial year, they have set a target of $ 8.5 billion. This is also being prepared for consideration by the Myanmar Investment Promotion and Facilitation Committee, which is mentioned above, in advance of the coming 2021-2022 financial year.

Due to COVID-19, some businesses were allowed to enter due to traffic restrictions, but were not allowed to do so, which reduced Myanmar’s foreign investment target for the 2019-2020 fiscal year. In the 2019-2020 fiscal year, foreign investment in Burma was projected at $ 5.8 billion, but only $ 5.68 billion came in. However, in the context of COVID-19, investors have limited access; There are also restrictions on what can be done after the visit. Similarly, Rangoon and Nay Pyi Taw, most of which have government offices in Naypyidaw, are difficult to access due to traffic congestion.

In the 2018-2019 fiscal year, $ 4.52 billion in foreign investment flowed into Myanmar. Myanmar is implementing a 20-year Myanmar Investment Promotion Plan aimed at becoming a middle-income country by 2030. It also aims to attract more than $ 220 billion in investment in Myanmar over the next 20 years and attract more responsible investment. Aiming to increase foreign investment in Myanmar, the Myanmar Investment Commission, in collaboration with the Japan International Cooperation Agency, drafted a long-term foreign direct investment promotion plan in 2013 and implemented it in 2014.

Source: Daily Eleven

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Myanmar’s manufacturing sector hit hard by new lockdown plan

Myanmar’s manufacturing sector has been hit hard by the new Lockdown program, which has led to a slump in production and the closure of many factories, reducing many jobs, according to the September 2020 Nikkei Myanmar Manufacturing PMI. Myanmar’s manufacturing sector has been hit hard by a number of new lockdown plans to combat the growing Coronavirus outbreak. Factories in Rangoon Division, including major industrial zones, temporarily closed, both production and new orders fell sharply and jobs were cut. Deteriorating business conditions in September abruptly ended the short recovery period between July and August.

Myanmar’s manufacturing PMI stood at 35.9 in September, down from 53.2 in the previous month, signaling a sharp decline in manufacturing. At 35.9, the second-lowest level in the survey, which began in December 2015, was higher than April 29, but the one-month PMI decline of 17.3 was the highest in record history, surpassing the April drop of 16.3. Four of the five components of the PMI were negative in September, with the exception of supply delays. Both production and new orders fell for the second-highest rate in survey history, with indexes falling more than 28 points in a single month. The list of jobs and inventories fell at the fastest rate in three to six months, respectively. Production fell sharply in September as the virus forced the closure of factories in key areas. More than half of the companies surveyed, 54 percent, reported lower production than the April record 81 percent, the latest decline in the three-month period after the spring lockdown.

New restrictions slowed demand during the period, and the number of new jobs fell in June-August, after a surge in new production, making it the second-highest rate in survey history. Demand in domestic markets was particularly weak, with new export orders, which stabilized in August, fell this month. India Thailand Businesses reported weak demand in Asian markets, including Vietnam and Qatar. New jobs fell sharply in September, while inventories fell at the strongest pace in three months, and the 12-month production outlook slipped to its weakest point in April. Many factories closed and jobs plummeted, declining again for the first time in seven months in August. About 16 percent of companies cut their workforce, the highest number of any period since the second quarter of 2020. Imports fell sharply in September, and inventories fell to a four-month high. Depreciation pressures continued in September, with selling prices hitting record highs as import prices fell.

Source: Daily Eleven

Border trade restrictions lifted between Myanmar, Thailand

Trade at the Myanmar-Thai border has resumed after a two-week standstill. After 12 days of only following six vehicles to travel between Tachilieik, Shan State, and Mae Sai in Thailand as part of restrictions to contain COVID-19, both sides agreed on September 30 to resume trading as usual. Due to the pandemic, there will be a reshuffle of drivers and vehicles when passing between Myanmar and Thailand but there will no longer be other restrictions on the trucks from both sides.

Trade at Tachileik, the border town between Myanmar and Thailand, had come to a standstill after Thai authorities on September 17 imposed restrictions allowing just six vehicles from Myanmar to enter the Mae Sai trade post in Thailand. Myanmar drivers, who were also prohibited from passing though, had to switch places with Thai drivers at the border. The Thais had prohibited Myanmar drivers from entering through the border after cases began rising in Myanmar but neglected to discuss the restrictions with their Myanmar counterparts. The Myanmar side then reciprocated with similar measures, forcing Thai vehicles to register in Myanmar to transport goods.

Without any imports from Myanmar, Thai traders are estimated to have incurred up to THB1 billion in losses from September 17 to 29. Both sides have agreed to make bilateral discussions whenever there are cases at border areas involving public interests. The driver shuffle system will still be in place when using Thailand-Myanmar Friendship Bridge No.2 and trucks will commute between trade posts as usual. Small traders will also be eligible to travel on the No.2 Bridge with small vehicles without limitations.

Source: Myanmar Times