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Japan-based Aeon Company postpones construction of shopping mall in Yangon

Japan-based AEON MALL Co., Ltd. has postponed plans to build a shopping mall in Yangon, according to Kyodo News. AEON MALL plans to begin construction of the mall this summer, a source familiar with the project told Kyodo News. The project aims to be the largest shopping mall in Myanmar and a joint venture between (Shwe Taung Group) and AEON MALL Co, .Ltd of Japan.

The source said that although the Japanese company had no plans to withdraw from the project, it would need to partially revise its plans to adapt to Myanmar’s consumer preferences and economic conditions. The project is worth US $ 180 million , according to Kyodo News.

Shwe Taung Group has a 30% stake in the project. Last year, Shwe Taung Group announced that Aeon Mall Myanmar Co., Ltd and AEON MALL would acquire a 70% stake. The five-storey shop will be built at the corner of Shweli Road and Ayeyar Wun Road in Dagon Seikkan Township, Yangon was expected to open in 2023.

Source: Daily Eleven

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Imports down by $3.07 bln as of 7 May, MoC reports

The value of Myanmar’s imports between 1 October and 7 May in the current financial year 2020-2021 stood at US$9.115 billion, a sharp drop of $3.07 billion from $12.19 billion registered in the yearago period, according to 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 seven 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 $3.19 billion. The figure was over $1.537 million lower compared to the same period in the previous FY. Meanwhile, Myanmar imported consumer products worth $1.958 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $106.2 million compared with the same period in the previous FY. Inter mediate goods make up the second-largest 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 $3.05 billion from $4.06 billion registered during the year-ago period.

During the same period, raw materials worth $912 million were also imported for the Cut-Make-Pack (CMP) garment sector, decreasing by $424.7 million compared with last budget year. At present, the CMP garment sector contributing to 30 per cent of Myanmar’s export sector is struggling due to 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

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MADB announcement to issue 2021-rainy season agricultural loans

  1. The Myanmar Agricultural Development Bank (MADB) of the Ministry of Planning and Finance has provided annual agrarian loans to farmers throughout Myanmar since its inception in 1953. Farmers have also worked with the bank for many years to develop Myanmar’s agricultural sector by getting a new loan after repaying the old one on time after harvest.
  2. The government has extended the deadline for the 2020 monsoon loan to make it easier for farmers who have financial difficulties in repaying the loan due to the COVID-19 pandemic. Instead of 15 April 2021, the deadline has been extended to 31 July 2021.
  3. At present, the Myanmar Agricultural Development Bank in each region/state, district and township will provide 2021 monsoon agrarian loans to farmers from 26-5-2021 to 30-9-2021. It is announced for farmers to contact respective branches of the Myanmar Agricultural Development Bank in townships and districts concerned as soonas possible in order to pay off old loans and get new loans for the 2021 monsoon season.
    Myanmar Agricultural Development Bank

Source: The Global New Light of Myanmar

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CBM sells US$18 mln in May at auction-rate

The Central Bank of Myanmar (CBM) reportedly sold US$18 million at an auction rate in May, the CBM data showed.
The CBM’s move aims to govern the market volatility and support the state’s foreign exchange reserves, the CBM stated. The bullish hard currency gained in the local forex market, reaching the peak of above K1,7000 on 12 May. In a bid to control the sharp daily gains of the US dollar, the Central Bank of Myanmar reportedly sold about 6.8 million dollars on 3 February 2021, 6 million dollars each on 22 and 27 April and $18 million in May in the auction market.

At FX auction market, the CBM purchased $39.5 mln in January 2020, $31.5 mln in February, $21 mln in March, $16.7 mln in May, $39.1 mln in June, $31.1 mln in July, $35.6 mln in August, $44.2 mln in September, $43 mln in October, $100,000 in November and $7.8 million in December respectively. It sold $2.7 million in April and $3 million in December 2020. Next, the CBM purchased $1.8 million in January 2021. The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The instability in the exchange rate posed difficulties to those stakeholders engaged in the agriculture and livestock supply chains including farmers, traders and exporters.

That is why the stable exchange rate is vital of importance for the businesses. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April. In 2020, 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 2019, the rates are pegged 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 an all-time high of K1,650 in the local currency market. 

Source: The Global New Light of Myanmar