Construction of crop dehydration factory completed by 65% in ChaungU Township

The construction of crop dehydration factory is 65 per cent finished in ChaungU Township, Sagaing Region and about 2,000 tonnes of crops are daily dried on a trial run at present. The factory is started to be developed on 28 December 2018, under the endorsement of the Sagaing Region Investment Committee, said managing director U Aung Naing Oo of Aung Nagani Co., Ltd. The dehydration factory is aimed at fetching a good price in the export market. It will export quality vegetable to foreign countries.

About 30 people will be employed upon the completion of the factory. The crop processing was earlier delayed due to the lack of dehydration factory. They faced market loss owing to the inferior quality then. The dehydration factory is set up to enhance the socio-economy of the farmers and explore more potential markets. Sagaing Region Investment Committee endorsed Aung Nagani Co., Ltd to execute crops drying, categorizing and rice milling and processing activities on 28 December 2018, bringing in the capital of K726.44 million (including US$ 0.113 million).

The factory is located at No. 2038, Kywalkyayoe yard, Ngaya n village-tract, ChaungU Township, Sagaing Region, according to the Directorate of Investment and Company Administration. 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

Greenback-Kyat exchange rate drops over K20 per dollar in over 2 weeks

The exchange rate of the US dollar has been on the decline against Myanmar Kyat in the domestic currency market, a dropping by over K20 in over two weeks, according to the Central Bank of Myanmar. The rate went down from K1,447 per dollar on 22 February to K1,423 per dollar on 10 March in the domestic exchange market.

Similarly, the domestic gold price is also dropping in the market. The price per tical (0.578 ounces, or 0.016 kilograms) of gold was around K1,410.000 on 3 February but had dropped to K1,325,000 by 10 March. In the domestic market in 2021, the highest and lowest exchange rate is currently fixed around K1,327-1,345 in January and K1,330-1,447 in February.

This year, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In the last six months in 2019, the rates were fixed at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit a record high of K1,650 in the local exchange market. 

Source: The Global New Light of Myanmar

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External trade drastically drops by $3.37 bln as of 26 Feb

Myanmar’s external trade between 1 October and 26 February in the current financial year 2020-2021 shrank to US$12.75 billion, a sharp drop of $3.37 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. During the same period in the previous FY, the trade stood at $16.12 billion, according to data released by the ministry. During the past five months, Myanmar’s export was worth over $6.45 billion, which plunged from $7.6 billion registered a year-ago period. Meanwhile, the country’s import was valued at $6.29 billion, showing a decrease of $2.223 billion compared with the last FY.

Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limit the trading time to contain the spread of the virus. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders. Additionally, some ocean liners suspended cargo transport from Myanmar, according to the Myanmar Mercantile Marine Development Association. Furthermore, the current political conditions drag down the trade. At present, the traders have a transaction problem triggered by the shutdown of the private banks, a market observer shared his opinion.

Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach an export target of US$16 billion and import at $18 billion. The Ministry of Commerce is focusing on reducing the trade deficit, export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade environment.

Source: The Global New Light of Myanmar

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“Hundi” businesses exploit benefits for border trade as private banks shutter

The closure of private banks forced the traders to turn to the operators running ‘hundi’, an informal money transfer system, to make transactions in the border trade, said U Min Khaing, chair of Myanmar Corn Industrial Association. At present, the Myawady border does not have trade barriers except transaction problem triggered by the shutdown of the private banks, he continued. Trade is regularly flowing in and out of the country. What a problem is that businesses cannot claim income through a legitimate financial market during the meantime.

Now, the trade is carried out through hundi operators. The closure of formal financial markets except the state-owned banks render the cash flow difficulties. Hundi business is weak to protect transactions and less secure. Besides, they charge too much for services, U Min Khaing stressed. The remittance cannot be done through the private banks and so, the traders use hundi service. It is okay for big cities like Yangon and Mandalay. They are not enough for security whatever. Bank services are much better than hundi. For an instance, they can withdraw K500 million immediately at the private bank.

However, withdrawal through hundi operators takes time for such a big amount of money. Myanmar is currently shipping about 5,000-6,000 tonnes of corns to Thailand through the Myawady border every day. Myanmar is allowed for corn export between 1 February and 31 August with Form-D, under zero tariff. Myanmar corn exports were exempted from tax between February and August. Thailand imposed a 73 per cent of tax on corn import to protect the rights of their growers if the corns are imported during the corn season of Thailand, under the notification of the World Trade Organization regarding corn import of Thailand.

Source: The Global New Light of Myanmar

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On export / import routes within 10 months; 19.25% are exported by land, 56.78% are exported by sea, more than 16% are imported by land and 79.39% is imported by sea

Myanmar’s export / import routes by land is 19.25% within 10 months; 56.78% are exported by sea and more than 16% are imported by land. 79.39% was imported by sea. Ministry of Finance and Industry According to the team that compiled the export / import statistics completely and quickly. From October to July of the 2019-2020 fiscal year, Myanmar’s exports / imports increased by 19.25% by land; 56.78% by sea; 3.90% by air and 20.07% by gas pipeline.

Imports accounted for 16.20% by land from October to July of the 2019-2020 fiscal year. 79.39% by sea; 4.41% by air. In the first four months of the 2020-2021 fiscal year, exports earned more than $ 5.5 billion, down more than $ 880 million from the same period last year, according to the Ministry of Commerce. In the four months from October 1 to February 12 of the 2020-2021 fiscal year, it earned $ 5.531 billion from exports. In the same period last year, it earned $ 6.417 billion.

In the first four months of the current fiscal year, exports fell $ 886.341 million from the same period last year. Myanmar exports agricultural products Animal products; Fishery products; Minerals; Forest products; Finished industrial products; It is mainly exporting to other exports. In the two months from October 1 to November 27 of the 2020-2021 fiscal year, the total export / import trade exceeded $ 4.3 billion, down by more than $ 1.5 billion from the same period last year, according to the Ministry of Commerce.

The main priority areas of the National Export Strategy 2020-2025 are agro-based food production; Textile and clothing sector; Industry and electronics; Fisheries sector; Forest products; Digital products and services; Logistics services; Quality management sector; Trade Information Services; And innovation and entrepreneurship. Despite the outbreak of the COVID-19 epidemic in the last fiscal year 2019-2020, the total foreign trade volume exceeded $ 36.6 billion, more than $ 3 billion more than planned, according to the Ministry of Commerce.

Source: Daily Eleven

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COVID-19 vaccination works ongoing in Nay Pyi Taw

Vaccinations for the prevention of the COVID-19 pandemic is ongoing in Nay Pyi Taw and relevant states and regions according to the officials.
A total of 12,922 people from Kachin State, Kayin State, Mon State, Sagaing Region, Mandalay Region and Nay Pyi Taw yesterday were injected the COVID-19 vaccination.

A total of 1.3 million doses of the vaccination out of 3.5 million have already reached in Nay Pyi Taw and different states and regions according to the authorities.

Healthcare workers, staff, religious persons including monks and nuns, and over 65-year-old persons have received the vaccination, said officials.

Source: The Global New Light of Myanmar

14-12-18 - PHOTO:- Steve Tickner Emerald shoe factory workers strike

Manufacturing exports plunge to $2.9 bln as of 19 Feb

Exports of finished industrial goods drastically fell to US$2.9 billion between 1 October and 19 February in the current financial year 2020-2021, a severe drop of $977 million compared with the corresponding period of the previous FY, according to the Ministry of Commerce. As per figures provided by the ministry, the exports of finished industrial goods totalled $3.88 billion during the same period in the 2019-2020FY. Myanmar’s manufacturing sector is largely 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. Myanmar’s garment export dropped by over 25 per cent as of the first quarter of the current FY compared with a year-ago period on the back of a slump in demand by the European Union market, the Ministry of Commerce stated.

Myanmar’s garment industry has been facing challenges such as raw material supply disruption and cancellation of orders amid the pandemic. Additionally, the current political conditions would drag down the sector, a market observer shared his opinion. At present, over 100 CMP garment factories temporarily shut down the reason for the lack of raw materials and a slump in demand due to the coronavirus negative impacts, leaving thousands of workers unemployed. Sixty-four factories have been permanently closed down during the pandemic, compensating about 25,000 workers. The data does not include those factories that have not resolved worker payments, the Ministry of Labour, Immigration and Population stated.

The labour-intensive enterprises are badly battered by the coronavirus impacts, the Directorate of Investment and Company Administration stated.
Under the EU Myan Ku Fund, we have now distributed K5.2 billion in support across 67,810 payments to unemployed garment factory workers as of 12 October 2020. Workers in all the states and regions of Myanmar have received this financial assistance. Next, foreign direct investments flow into many types of businesses including garment enterprises, the Myanmar Investment Commission stated. Of the investment proposals, the manufacturing and labour-intensive businesses are prioritized by the commission. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US.

Myanmar’s garment factories operate under the CMP system, and those engaged in this industry are striving to transform CMP into the free-on-board (FoB) system. As the factories cannot enter into a contract for FoB, Own Design Manufacturing (ODM) and Own Business Manufacturing (OBM), the income is limited, according to the MGMA. Exports of garments manufactured under the cut-make-pack (CMP) system were valued at US$4.798 billion in the last financial year2019-2020, according to data from the Ministry of Commerce. Although the sector is struggling owing to the cancellation of the order from the European countries and suspension of the trade by western countries amid the pandemic, export values rose in the previous FY (1 Oct 2019-30 Sep 2020). 

The export value of CMP garments was only $850 million in the 2015-2016 FY, but it has tripled over the past two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019FY, according to the Commerce Ministry. 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 own sources, including weaving, knitting, dyeing, and sewing factories. The MGMA has more than 500 members, and garment factories in Myanmar, employing more than 400,000 workers. Investors prefer to invest in countries with inexpensive labour, such as Myanmar. 

Source: The Global New Light of Myanmar

Stock trading value in equity market extends drop in Feb 2021

The value of shares traded on the Yangon Stock Exchange (YSX) in February 2021 showed a drastic drop of K200 million against January’s trading value, the YSX’s monthly report indicated. In February 2021, K442 million worth of 77,388 shares were traded on the exchange. The figures plummeted from K640 million value of 121,893 shares registered in January. Additionally, the value of shares traded on the Yangon Stock Exchange (YSX) in February 2021 dropped by more than a third compared with February 2020 (registered K1.4 billion valued 188,919 shares), the YSX’s monthly report indicated.

At present, shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd (TMH) and the Ever Flow River Group Public Co., Ltd (EFR) are being traded on the exchange. The shares prices last month showed a downtick compared to the prices registered in January 2021. The price per share of FMI decreased from K9,700 in January 2021 to K9,300 in February 2021. Similarly, the share price of MTSH slid to K3,500 from K3,900 last year. The stock prices were remained unchanged at K8,200 for MCB and K22,000 for FPB, while TMH slightly rose to K2,800 from K2,700. The share price of EFR last month was closed at K3,350 from K3,600 in January 2021.

Amid the COVID-19 crisis, Myanmar’s securities market has been able to continue operating without stopping trading. In 2020, the value of stocks traded on the exchange peaked at K1.48 billion in February. In contrast, trading on the exchange registered an all-time low of K552.9 million in November due to the COVID-19 resurgences in Myanmar, the exchange’s monthly report showed. According to the annual report released by the exchange, a total of K12.6 billion worth of 1.87 million shares by six listed companies were traded on the exchange in 2020, a significant drop compared to 2019. Over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019.

In 2016, shares of only three companies were traded on the YSX — FMI, MTSH, and MCB. One more public company, FPB, was listed on the YSX in 2017. In 2018, TMH debuted on the exchange. EFR entered the exchange in 2020. Moreover, Amata Holding Public Co., Ltd. (AMATA) released a statement that the listing date will be postponed for a certain period of time, and the rescheduled listing date will be announced in due time, YSX notified on 26 February 2021. 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.

At present, people are keeping emergency savings rather than investing in the COVID-19 crisis and current political conditions, he added.
Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020.
The YSX launched a pre-listing board (PLB) on 28 September 2020 to provide unlisted public companies with fund-raising opportunities and build a bridge toward listing on YSX, stated the bourse. The YSX, a Myanmar bourse, was launched four 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.

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. Amid the COVID-19 crisis, Myanmar’s securities market has been able to continue operating without stopping trading. According to the annual report released by the exchange, a total of K12.6 billion worth of 1.87 million shares by six listed companies were traded on the Yangon Stock Exchange (YSX) in 2020, a significant drop compared to 2019. Over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019. 

Source: The Global New Light of Myanmar

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37 export lines of rice, onion and petrol including diesel, and 72 imported goods will be temporarily exempted from applying for licenses from March 3 to April 9

Rice, onion, 37 export routes such as garlic and petrol; From March 8 to April 9, 72 import goods lines, including diesel, will be temporarily exempted from applying for licenses, according to the Ministry of Commerce. Published by Department of Commerce. The Ministry of Economy and Commerce shall comply with the relevant laws and regulations regarding import and export. According to policies; In order to comply with the WTO Import Licensing Procedures Agreement, the list of 1224 product lines that need to apply for export licenses has been relaxed in accordance with the WTO Import Licensing Procedures Agreement. 

A list of 3931 product lines that need to apply for import licenses has been published by Notification No. 68/2020. However, in the current situation, importers and exporters need to make their business more convenient. In order to reduce the import license fee, the main import lines of goods that need to apply for a license are: Materials to support the health sector; Basic foodstuffs; In order to support the export sector, the licensing process will be temporarily relaxed for major agricultural products.

Of the goods lines that need to apply for import and export licenses, 37 export lines and 72 import lines are exempted from applying for licenses. Onion, garlic, rice, refined with raw sugar; natural rubber raw materials; 37 export goods lines such as cotton goods; Fish, meat (salmon, tuna); Wheat and flour products; Soybean products Palm oil products; Food raw materials, cement products, Gasoline Diesel products; Medical supplies Fertilizer There are 72 lines of imported goods such as industrial lubricants. The exemption from applying for licenses for these cargo lines will be temporary from March 8 to April 9.

Source: Daily Eleven

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Myanmar rice exports to China strong as Yuan gains

With the Chinese Yuan appreciating, Myanmar’s exports of rice
and broken rice are so strong that the exporters are receiving
handsome benefits, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. At present, the Chinese Yuan is gaining, and a Yuan is over K200. As a result of this, the exporters are financially doing well. The stronger the Chinese Yuan, the better the exporters earn. There is good potential for rice and broken rice among the goods exported to China. The rice prices stand at 129 Yuan per bag for broken rice, 133 Yuan for Ngasein rice variety, 135 Yuan for Thuka variety and 142 Yuan for Htonepu variety, Muse rice
depot stated. Last 26 February, China gave green lights to some Myanmar export companies to deliver the rice to China through the Muse land border.

It is also said that the authorized companies for rice export to China have increased this year as against last year. Myanmar traders have
started shipping rice to China under new permits through the Muse border.
Nevertheless, the private banks’ closure disrupted the transaction problem in the rice trade, he elaborated. Myanmar shipped more than 720,000 tonnes of rice and broken rice to foreign countries between 1 October and 15 January of the current financial year, earning over US$275 million, Myanmar Rice Federation stated. The country sent over 308,000 tons to neighbouring countries via border trade, and maritime trade saw over 418,000 tonnes. Myanmar has exported rice to 31 foreign markets so far. China is the main buyer of Myanmar rice with over 340,000 tonnes, followed by the Philippines (36,000 tonnes) and Poland (14,000 tonnes).

Meanwhile, Myanmar sent broken rice mostly to China (over 210,000 tonnes), followed by Belgium (46,000 tonnes) and Thailand (over 6,300 tonnes). Broken rice was placed in 16 foreign markets. Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops, said the Chair of Myanmar Rice Federation (MRF). Weather changes affected irrigation water resource availability in agriculture. Consequently, the export figures showed a drop of 300,000 tonnes of rice in exports this year. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar