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Myanmar’s manufacturing sector continues to suffer from lockdown restrictions, and the rate of production and new order continue to fall due to weak demand

According to the Nikkei Myanmar Manufacturing PMI (Manufacturing Purchasing Managers’ Index for January 2021), Myanmar’s manufacturing sector is still suffering from lockdown restrictions and production is still weak due to low demand. Manufacturing in Myanmar deteriorated further at the beginning of 2021. Due to continued restrictions imposed to control the spread of COVID-19, factories closed and production fell for five consecutive months. New orders fell for the fifth straight month, but were the slowest in the series, with job cuts continuing across the industry.  Declining production has led companies to control purchases and imports have plummeted.

 However, plans to expand the business boosted optimism in January and peaked in 11 months. Looking at prices, inflationary pressures have risen sharply due to a shortage of raw materials. Sales prices have risen sharply, indicating a limited burden of costs on shoppers. Myanmar’s PMI for January was 47.8, and the rise from December’s 44.7 indicates a weakening of the manufacturing sector. Production fell for the fifth straight month in January, but was the weakest for the second slump, which began in September. Most of those who pointed out the closure of factories and the weakening of demand. Reflecting the order of production, new orders received by producers in Myanmar fell at a slower pace, the latest slowing in the current five-month slump.

 Lockdown restrictions put pressure on demand, according to respondents. Companies that have documented growth report new customers and new arrivals. Despite low output, there were still signs of pressure on productivity, and inventory concentrated significantly in January. Producers continue to suspend hiring efforts, extending the current cut-off rate to five months. Some respondents reported that the workers had returned to their hometowns. Producers continued to be wary of inventories in January as efforts to rebalance stocks as demand weakened. As a result, pre-production and stockpiling of goods was significantly depleted.

Inflation of costs is the highest since November 2018. Suppliers have pushed up prices due to scarcity of raw materials and rising shipping costs. Producers decided to raise factory prices in January, but some companies cut prices to boost demand, and overall inflation was not significant. Looking to the future, respondents are optimistic. Shreeya Patel, an economist at IHS Markit who conducted the survey, said that the January survey, which recorded a further decline in Myanmar’s manufacturing sector, indicates a slump in 2021. Weak demand and factory closures have been linked to lower production and new orders. At the same time, job cuts continue and imports are plummeting. The survey is based on original data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

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Republic of the Union of Myanmar Office of the Commander-in-Chief of Defense Services

Order No (9/2021)

6th Warning of Pyatho, 1382 ME

2 February 2021

The State Administration Council is formed with the following personnel in accordance with Article 419 of the State Constitution of the Republic of the Union of Myanmar.

(a) Senior General Min Aung Hlaing Chairman

(b) Vice-Senior General Soe Win Vice-Chairman

(c) General Mya Tun Oo Member

(d) Admiral Tin Aung San Member

(e) General Maung Maung Kyaw Member

(f) Lt-Gen Moe Myint Tun Member

(g) Phado Mahn Nyein Maung Member

(h) U Thein Nyunt Member

(i) U Khin Maung Swe Member

(j) Lt-Gen Aung Lin Dway Secretary

(K) Lt-Gen Ye Win Oo Joint-Secretary

Sd/

Min Aung Hlaing

Senior General

Commander-in-Chief of Defence Services

Source: The Global New Light of Myanmar

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MoC extends import permit on reconditioned machine for SMEs

THE Ministry of Commerce has extended import permits on the reconditioned machine for the small and medium- sized enterprises, support the establishment of the manufacturing process and reduce the capital expenditure, according to the notification released in the third week of January 2021. The Ministry of Commerce has allowed the import of used machines which are useable since 2015, according to section 13, subsection (b) of the Export and Import Law of the ministry.

The ministry issues the notification every year as per its policy, intending to avoid unnecessary goods piled up and environmental damage, and improving the entrepreneurs’ production capacity. Those reconditioned machines are to be remained usable up to 10 years starting from the import date. The machines shall be repaired to have the usable condition. The import requires a 10-year warranty by foreign sellers. Moreover, the machine parts and accessories of those imported machines shall be easily purchased in the domestic market.

The reshipment inspection certificate with six-month validity is also required to ensure the running condition of those machines, as per the notification. Nevertheless, the permit does not cover home appliances such as refrigerator, air-conditioner, washing machines, copier, printers, televisions, computers and office machines. Those machines which are designated for commercial sales are also not included. The notification comes into effect within 60 days of the issue date (20 January 2021). Those reconditioned machines can be imported only via maritime trade.

Source: The Global New Light of Myanmar

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Domestic gold price jumps to K1,341,000 per tical

THE domestic gold price soared to K1,341,000 per tical (0.578 ounces, or 0.016 kilogrammes) on 2 February, the gold traders said. The international gold price was pegged at around US$1,855 per ounce on 2 February 2021, while a US dollar exchange rate was worth K1,335. Last 6 January 2021, the precious pure gold metal price rose to K1,336,000 per tical in the domestic market, and now, it peaked within one month. However, the local market sees more sellers outnumbering the buyers.

Earlier, the daily transaction of 50 visses (a viss equals 1.6 kg) of gold were seen in the market. Now, about five vises are traded per day, according tothe Yangon Region Gold Entrepreneurs Association. In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October).

The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal price moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs last year, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching an alltime record high of K1,300,000 on 5 September 2019.

Source: The Global New Light of Myanmar