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Singapore tops FDI list in Myanmar as of Jan-end

Singapore is the top source of foreign direct investments into Myanmar in the first four months of the current financial year 2020-2021, according to the data released by the Directorate of Investment and Company Administration (DICA). Twelve Singapore-listed enterprises brought in US$378.327 million into Myanmar between October 2020 and January 2021. Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors. China stood as the second-largest investors this FY with an estimated capital of $139.354 million from 10 enterprises, followed by Hong Kong SAR investing $87 million in Myanmar.

Those enterprises listed from Thailand, India, Japan, Malaysia, the Republic of Korea, UK, Viet Nam, Marshall Island and China (Taipei) also made investments this year. Myanmar has attracted foreign direct investments of more than US$672.59 million in Oct-Jan of current FY, including the expansion of capital by existing enterprises and investments in the Special Economic Zones, DICA’s statistics indicated. Of 38 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and 31 January of current FY, 20 enterprises pumped FDI into the manufacturing sector. Power sector received six projects, and livestock and Fisheries sector attracted five projects.

Other service sector drew four projects while the agriculture sector pulled two assignments, and one foreign enterprise entered the hotels and tourism sector. MIC intends to reach the FDI target of $5.8 billion for the current FY2020-2021. Singapore has stood as the largest foreign investor in Myanmar since 2012, pulling in the FDI of $1.85 billion in the FY2019-2020, $2.4 billion in the FY2018-2019, $724.4 million in the mini-budget period (April-September, 2018), $2.16 billion in the 2017-2018FY, $3.8 billion in the 2016-2017FY, $4.25 billion in the2015-2016FY, $4.29 billion in the 2014-2015FY, $2.3 billion in the 2013-2014FY and $418 million in the 2012-2013FY respectively. Additionally, Singapore emerged as the second-largest foreign investor in the Thilawa Special Economic Zone, after top investor Japan.

Source: The Global New Light of Myanmar

World oil prices are around $ 60 a barrel, and petrol prices in the domestic market have risen by 105 kyats per liter in 17 days

World oil prices (WTI) were around $ 60 a barrel on February 17, 2021, and petrol prices in the domestic market continued to rise by 105 kyat per liter in 17 days, according to petrol stations in Rangoon. Compared to February 1, 20 and February 17, 2021, the price of petrol has risen by 105 kyats per liter. On February 17, the price of diesel sold at some petrol stations in Rangoon was 800 kyats per liter (3,523 kyats per gallon); Premium diesel 810 kyats per liter (3568 kyats per gallon); Octane 92 Ron 760 kyats per liter (3341 kyats per gallon); Octane 95 Ron is 870 kyats per liter (3841 kyats per gallon). WTI oil prices rose to $ 76 on October 3, 2018, and then fell again to around $ 42 on December 24. On April 23, 2019, it rose to $ 66. It then dropped to $ 51 on June 12, rose above $ 60 on July 10, and dropped to $ 51 on August 7. 

It fell to around $ 53 on Sept. 3 and rose to around $ 62 on Sept. 16 to $ 55 on Nov. 19; On November 29, $ 58; On December 4, $ 56; On January 8, $ 63; On January 15, $ 57; On February 22, $ 53. On March 7, it was $ 41. On March 18, around $ 20.  It fell below zero on April 20 and rebounded to around $ 48 on December 18. In the four months from June to October 2018, when the dollar price and world oil prices were higher, the price of domestic petrol rose by more than 21%. 95 Ron 1115 kyats. Diesel 1095 kyats. Premium diesel up to 1105 kyats. From January to May 2020, due to the fall in global oil prices, the domestic market also fell in price. On May 1, the price of diesel sold at some petrol stations in Rangoon was 435 kyats (1 liter 1977 kyats) per liter; Premium diesel 445 kyats per liter (2022 kyats per gallon); Octane 92 Ron 300 kyats per liter (1363 kyats per gallon) Octane 95 Ron per liter 435 kyats (1977 kyats per gallon). From November 6 to 19, 2019, the price of domestic kerosene fluctuated from 10 to 35 kyats per liter from the end of 2019 until now. 

From November 21 to 29, it rose from 25 kyats to 35 kyats per liter, and from November 29 to December 9, it dropped to 25 kyats per liter. From December 13 to January 9, 2020, it rose from 20 to 30 kyats per liter, and from January 8 to May 1, it dropped from 550 kyats to 605 kyats per liter.  From May 6 to August 14, it rose from 155 kyats to 240 kyats per liter, fell from 15 kyats per liter between August 14 and 18, and rose again by 10 kyats per liter on August 27. From September 8 to 10, 20 kyats per liter; From September 11 to November 4, it dropped from 10 to 30 kyats per liter, and from November 11 to 2021. 160 kyats per liter during January 31; From February 1 to February 17, it was 105 kyats per liter. In the domestic market, the retail prices of kerosene on April 1, 2016 were 500 kyats per liter for diesel (2270 kyats per gallon), 540 kyats per liter for premium diesel (2451 kyats per gallon); Octane 92 Ron 550 kyats per liter (2497 kyats per gallon) Octane 95 Ron per liter 650 kyats (2951 kyats per gallon).

Source: Daily Eleven

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Imports drop by $1.47 bln as of 22 January, MOC reports

The value of Myanmar’s imports between 1 October and 22 January in the current financial year 2020-2021 stood at US$4.968 billion, a sharp drop of $1.47 billion from $6.44 billion registered in the year-ago period, according to the data released by the Ministry of Commerce. The value of imports in the consumer, capital, intermediate goods, and CMP businesses groups dropped in the current FY. Over the past three months of the current FY, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts, were brought into the country. Their import value was estimated at $1.7 billion.

The figure was $629.6 million lower compared to the same period in the previous FY. Meanwhile, Myanmar imported consumer products worth $1.04 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $57.363 million compared with the same period in the previous FY. Intermediate goods make up a large share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items. This year, imports of raw materials plunged to $1.588 billion from $2.224 billion registered during the year-ago period.

During the same period, raw materials worth $613 million were also imported for the Cut-Make-Pack (CMP) garment sector, showing a decrease of $148.363 million compared with last fiscal year. At present, the CMP garment sector contributing to 30 per cent of Myanmar’s export sector is struggling because of the cancellation of order from the European countries and suspension of the trade by western countries amid the COVID-19. Therefore, import values of raw materials by CMP businesses have been dropping. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the Ministry of Commerce. 

Source: The Global New Light of Myanmar

Domestic gold market sees bumpy ride for gold price

The domestic gold market is facing price fluctuation in February. It was opened at K1,385,500 per tical (0.578 ounces, or 0.016 kilograms) on 16 February, the gold traders said. The yellow metal fetched the highest of K1,330,000 per tical in January 2021. And now, it reached a new peak of K1,410,000 per tical on 3 February 2021.

Consequently, Yangon gold market was suspended from governing the volatile gold price on 5 February. The market was reopened on 10 February at K1,373,000 per tical. The prices stood at K1,369,000 per tical on 11 February, K1,363,000 on 12 February, K1,368,000 on 13 February and K1,378,000 on 15 February. Following the emergency meeting held by Yangon Region Gold Entrepreneurs Association (YGEA) on 4 February, the association determined four factors on market volatility.

It urged not to trust in the rumour of withdrawing K5,000 and K10,000, to control the gold trading over concerns, to use cash down payment system and to follow the COVID-19 guidelines issued by the Ministry of Health and Sports. Despite the bull market in Myanmar, the international gold price was sliding. The gold price was pegged at around US$1,856 per ounce on 2 February and $1,823 on 16 February 2021. At present, some retail gold outlets are opened. However, the local market sees more sellers outnumbering the buyers. Additionally, Kyat is gaining against the US dollar in the local forex market at K1,440.

Source: The Global New Light of Myanmar

Myanmar’s container trucking industry suspended indefinitely

Myanmar’s container trucking industry has been suspended indefinitely, said the Myanmar Container Trucks Association. Vice chairman (1) of the association said that approximately 2,750 container transportation trucks have ceased operations since February 12 due to the disruption of port and banking services.

They have suspended operations indefinitely on February 12,2020. The trucks will still run and transport cargo deemed as essentials for the country and its people – such as medicine- but they have stopped running for other goods and materials. This is because the banks and ports are closed. People are worried that trucks would be vandalised and damaged by unscrupulous persons.

The truck drivers are also showing support for the people protesting. There is currently no issuance of delivery orders in the country as many of those involved in the logistics industry are currently participating in the Civil Disobedience Movement. Myanmar’s import and export industry have also stalled due to the weakening of the Kyat against the US dollar.

Source: Myanmar Times

Licenses required to set up a business and permits will be reviewed

Licenses which are essential to set up a new business and permits would be reviewed according to the  Union Minister for Investment and Foreign Trade. License and some of the permits need to be vetted for the business sector according to the prescribed law. This is the type of license required by law. Some licenses whereas permits do not have much impact on the industry in the country, and there is a small risk. Some have completely unnecessary licenses and also permits. Therefore, licenses and permits will be reviewed and relaxed in accordance with the law. 

The Ministry of Investment and Foreign Trade would be responsible for coordination between ministries and organizations on investment matters. The Directorate of Investment and Company Administration has announced that it will facilitate investment activities. The Directorate of Investment and Company Administration (DICA) supports the Electronic Company Registration System (MyCO), which provides online company registration services to facilitate investments, as well as the online Visa Certification System for Foreign Residence and the Rescue Aircraft for Investors.

In addition, investment activities, domestic industries and raw materials and equipment needed to develop infrastructure such as electricity are also imported. The Myanmar Investment Commission (MIC) and the Myanmar Investment Commission (MIC) will take immediate action in accordance with the Myanmar Companies Law and the Myanmar Investment Law. The Directorate of Investment and Company Administration (Head Office) and the Directorate of Investment and Company Administration (Branch) in the states and regions have been informed by the Directorate of Investment and Company Administration.

Source: Daily Eleven

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Trade in the 105-mile trade zone in Muse is stagnant due to the lack of importers and the closure of private banks

The 105-mile trade zone in Muse, which is the main source of trade on the Sino-Burmese border, has been hampered by the lack of importers and the closure of private banks, with trade falling by more than half, according to the Muse 105-mile border trade zone. Currently, the 105-mile trade zone is trading normally. But yesterday there was a temporary suspension on the 8th and 9th February,2021. However, Man Win Pauk and Kyin San Pauk Pauk are trading. This is where the previously traded vehicles go. The import side is the same as the Chinese side. There is no trade stop at Man Win Pauk and Kyin San Pauk Pauk. But in this 105-mile trade zone, there are two main points. The first is that private banks in the Muse area 105 miles are closed on the 8th and 9th.

Due to the closure of the banks, there are some difficulties in running the money. Second, company representatives and agents working in the 105-mile trade zone are protesting. There is no jute service. But at the moment, there is trade in fruits, watermelons and fruit cars. There are no other products. Trade in the Muse 105-mile border trade zone has dropped by more than half in recent days due to the current political situation. Normally, around 1,000 cars have to travel. Currently, about 1,400 vehicles left on the 7th. Yesterday, on the 8th, it decreased a little bit. There was a slight decline in trade. Trade has dropped sharply from around $ 10 million to $ 15 million a day in recent days. In percentage terms, it has dropped by more than half. People have to make sure that trade does not stop at any time. It is a matter for traders, farmers and farmers. The other country does not stop buying. Myanmar is ready to export. 

Therefore, the operation process needs to be continuous. This will benefit the farmers and the state. People also need business opportunities. China also trades regularly. At present, there is regular cross-border trade, so importers and exporters should continue to do so. People will continue to facilitate the trade. Banks in northern Shan State, including Muse, have been shut down due to the ongoing political situation, and people are increasingly withdrawing money at ARM machines. Imported vehicles have been in the Muse 105-mile trade zone for four days, while imported vehicles have been in the area for two days and about 700 to 1,000 imported vehicles are waiting in line to be inspected in the trade zone, according to truck drivers. According to a truck driver who have been there for four days, there is no custom has been inspected. They said they did not check because there were no agents carrying jute. On February 10, thousands of people continued to protest in Muse.

Source: Daily Eleven

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Myanmar maize export to Thai hits 100,000 tonnes in 10 days

Myanmar’s maize export to Thailand via Myawady border trade zone hit about 100,000 tons in 10 days. Maize, one of Myanmar’s agricultural products, could be exported to Mae Sot, Thailand through Myawady border checkpoint with Form-D attached between 1 February and 31 August. So, a total of 445 Form-Ds have already been issued from 1 February to 9 February 2021 and Myanmar earned US$30,62 million from the export of 99,637.37 tonnes of maize. Thailand imposed a hefty tax on imported goods during its corn season to protect its growers’ interest. It grants tax exemption for corn import between February and August.

For the rest of the time, Thailand will impose 73 per cent of tax on corn import as per the notification submitted to the World Trade Organization (WTO). Thailand annually imports to around 5 million tonnes of corn from foreign countries. The local maize consumption in Myanmar is also higher than that in the previous year. This year, the association targeted to export 1.6 million tonnes of corn, according to the Myanmar Corn Industrial Association (MCIA). At present, Myanmar’s corn export is heavily relying on border trade.

The country mainly sends the corn to the neighbouring countries like China, Laos and Thailand. Corn is also shipped to Singapore, Malaysia and Viet Nam through sea trade. Myanmar exported over 2.2 million tonnes of corn to the foreign market in the past FY2019-2020, with an estimated value of over $360 million, according to the data of the Ministry of Commerce. Currently, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. There are about 1.12 million acres of corn in Myanmar, and it has three corn seasons — winter, summer and monsoon. The country produces 2.5-3 million tonnes of corn annually.

Source: The Global New Light of Myanmar

MIFER holds coordination meeting

The Ministry of Investment and Foreign Economic Relations organized a coordination meeting on facilitation in businesses in accordance with the directives of State Administration Council yesterday. During the meeting, Union Minister U Aung Naing Oo briefed the coordination meeting and highlighted the main focus of business sector during the short-term governance of government. In the speech to public made by State Administration Council Chairman Senior General Min Aung Hlaing, it included revival of state economy, invitation of local and foreign investments, promotion of bilateral relation between alliance countries and those interested in Myanmar, following of agreements in line with the law, giving permits to businesses which have been approved in policy by the previous government as quickly as possible and development of farming sectors and export sectors. He also said Myanmar is also one of the countries that face economic impacts of COVID-19 and instructions are being made to revive the economy.

The unpractical ways and some things of existing law and procedures that can be obstacles in businesses will be revised and amended. He then discussed the facilitation of investment, delay reduction in departmental processes, capacity building of relevant departments, Streamlining and Simplifying Procedures, Maximizing Online Services, Assuring aftercare services, Reducing Regularoty Burden, providing information in a timely manner and Transparency Enhancement recognized as SMART Programme. He also said approval seeking step at the department will be relaxed in permitting the investment and quick response must be made by the relevant departments, if necessary. As the first procedure, negotiations between the ministries will be conducted to revise and relax the Standard Operating Procedures (SOP) regarding the investment. For the second procedure, the One Stop Service (OSS) Centre of Myanmar Investment Commission will be also revised like the OSS of Thilawa SEZ.

The senior officers of ministries assigned at OSS are needed to be fully authorized in accordance with the law and procedures to become effective and quality OSS. The third procedure is granting liceces and permits. Some of the licences and permits are needed to scrutinize for business fields and they are essential ones according to the laws and rules while some of the licenses and permits are at Low Risk. Similarly, some permits and licences are made although they are not required at all. Therefore, granting permits and licences will be conducted in line with the law. He then discussed the duties of ministry for investment sector to negotiate between ministries and firms and work pans to permit the delayed investment in accordance with the existing law and procedures. The meeting was attended by Deputy Minister of Investment and Foreign Economic Relations U Than Aung Kyaw and other officials of relevant ministries including Nay Pyi Taw Development Committee, YCDC, MCDC and Yangon Electricity Supply Corporation.

Source: The Global New Light of Myanmar

Black bean price rises by over K50,000 per tonne on USD appreciation

The price of black beans in the domestic market has risen by over K50,000 per tonne because of the appreciation of the US dollar exchange rate, according to the Yangon Region Chamber of Commerce and Industry (Bayintnaung commodity depot). Although the dollar exchange rate stood around K1,330 per dollar in the local currency market at the end of January, the rate jumped to K1,400 per dollar on 4 February. Therefore, the black bean’s price has amounted to K975,000 per tonne on 10 February, increasing from just K923,000 per tonne on 3 February, increasing over K50,000 per tonne. Similarly, the price of the pigeon pea is also about K810,000 per tonne.

The new harvested black bean is currently entering the domestic market. The traders demand it from India, Pakistan and Bangladesh. The first October of 2020 saw the Ministry of Commerce and Industry of India issue a notification to purchase 150,000 tonnes of black beans. The import deadline is March 2021. The licence will be equally granted for India’s companies.
At present, Myanmar has already exported nearly 100,000 tonnes of black beans. The remaining 50,000 tonnes of beans will continuously be exported, according to Myanmar Pulses, Beans and Sesame Seeds Merchants Association (MPBSSMA). The newly harvested black bean started to enter the market. The black bean plantations yielded around 400,000 tonnes annually, and the bean is mainly exported to India.

Similarly, about 50,000 to tonnes of pigeon peas are produced yearly and exported. Myanmar has also produced about 50,000 tonnes of pigeon peas annually and exported them chiefly to India. Since 2017, India has been setting import quota on beans, including black beans and pigeon peas. Myanmar has to export black beans and pigeon peas under a quota system and limit period. Consequently, according to market observers, there is no guarantee that we could get the prevailing market price next year. Following no assurance of black beans and pigeon peas in the market, the association suggested on the end-October that the local farmers grow the black-eyed beans more.

Source: The Global New Light of Myanmar