MIC greenlights 15 new investment proposals including US$2.5 billion power generation project

Myanmar Investment Commission (MIC) held its 3/2021 meeting yesterday morning at the Office of the State Administration Council Office at office No 18 in Nay Pyi Taw. Member of the State Administration Council Chairman of the Myanmar Investment Commission Lieutenant-General  Moe Myint Tun and members of the Myanmar Investment Commission participated in the meeting.

The meeting approved fifteen new projects for electricity generation, livestock, manufacturing and other services sectors, and it also approved the increase in capital of two existing projects. The approved projects amounted to US$ 2,783.822 million and K153.67 billion to create 2,473 job opportunities for the local labours. In today’s meeting, the project to generate electricity from LNG with a large capital intensive investment amount of US$2.5 billion is included in the approved projects.

The electricity generated by the power plant will be sold cent per cent at home, and it is expected to support the goal of 100% nationwide electrification from the national grid by 2030. By the end of April 2021, the countries with the largest investment out of 51 countries/regions investing in Myanmar were Singapore, China, and Thailand. The electric power sector leads the list of most invested sectors out of 12 business sectors with 26.57% of total investment. It was followed by the oil and gas sector, accounting for 25.72% and the manufacturing industry, accounting for 14.61%.

Source: The Global New Light of Myanmar

image_6483441 (6)

Fifty tonnes of coffee projected to export to France this month

Myanmar Coffee Association stated that over 50 tonnes of coffee produced in Hopong city, Shan State, under poppy substitute project are planned to ship to France this month. Myanmar’s coffee export has dropped by half last year on the weak demand triggered by the coronavirus. Typically, Myanmar exports about 500-600 tonnes of coffee to external markets. The volume plummeted to 300 tonnes last year, said an official of the Myanmar Coffee Association. The impacts of coronavirus hurt the coffee industry as the lockdown, and physical distancing caused a reduction in consumption.

Myanmar primarily produces Arabica coffee. Speciality coffee fetches as much as US$4,500-10,000 per tonne. Myanmar speciality coffee beans are highly demanded because of their high quality and organic production, said Chair U Myo Aye of the Myanmar Coffee Association. Myanmar’s coffee has already earned a good reputation. It has penetrated markets in Asia such as Hong Kong and Singapore, and European countries and the US. It has a good potential in the global market,” said an official from the Agriculture Department. Myanmar’s coffee has grabbed a market share in the US with the contribution of USAID and WinRock International NGO. Efforts are being made to penetrate markets in Japan, the Republic of Korea, and Canada.

At present, the export volume of coffee is extremely low, tracking the negative impacts of the coronavirus. In response to the COVID-19 in the coffee sector, innovative trade offer and a digital market are required to adapt to a new normal, coupled with client-oriented supply. Moreover, the coffee growers and producers need to increase quality to enter competitive markets. As a result of this, a government-backed loan is needed to help the stakeholders survive in the crisis. There are 40,000 acres of highland coffee plantations and about 10,000 acres under lowland coffee in Myanmar, totalling 50,000 acres. Shan State is the leading producer of coffee beans. Coffee beans are harvested between December and February. They are distributed and exported throughout the year after harvest time. Myanmar yearly exports around 400 tonnes of coffee. In 2019, it shipped about 500 tonnes of coffee to foreign markets.

Source: The Global New Light of Myanmar

image_6483441 (5)

Exports outperform import in Mawtaung border trade amid COVID third wave

Exports surpassed imports through the Mawtaung land border between Myanmar and Thailand amidst the third wave of the coronavirus in Thailand that shares a border with Myanmar’s Taninthayi Region, said an official from the Mawtaung border checkpoint. Myanmar yearly exports fishery products to Thailand through the Mawtaung land border of the Taninthayi Region.

In contrast, building materials and consumer goods are imported by Thailand. The border trade went back to normal. Myanmar commonly sends squid and other fishery products, ginger and agro-products. Meanwhile, consumer goods and construction materials are flowing into the country from Thailand. Yet, exports surpassed imports in the Mawtaung border, said an official in charge of Mawtaung post.

Regardless of the third wave of the COVID-19, trade returned to normal. Myanmar shipped over US$8 million worth of goods to Thailand in seven months (Oct-April) of the current financial year 2020-2021 via Mawtaung border and carried out $1.5 million worth of imports, the Mawtaung border post’s data showed. Mawtaung is about 123 miles away from Myeik city, Taninthayi Region. Despite its positive potentials in border trade, the crossing is not available for all seasons. Thailand considers it just as a special temporary post. 

Source: The Global New Light of Myanmar

image_6483441 (4)

Companies registered on MyCO exceed 2,000 in four months: DICA

The number of companies registered on the online registry system, MyCO, topped 2,000 in the first four months of this year, the statistics released by the Directorate of Investment and Company Administration (DICA) indicated. The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, in keeping with the Myanmar Companies Law 2017. During Q1 of 2021, the number of registered companies on MyCO was 1,373 in January, 188 in February, 163 in March and 254 in April, the DICA’s statistics showed. At present, 100 per cent of the applicants are using the online registration platform, the DICA stated.

Last year, the figures of registered companies stood at 1,415 in January, 1,298 in February and 1,015 in March, only 348 companies in April, 798 in May, 1,314 in June, 1,650 in July, 1,551 in August, 1,378 in September, 1,693 in October, 1,099 in November and 1,521 in December, as per statistics of the DICA. The figure stood at 1,733 in January 2019, 1,419 in February, 1,108 in March, and over 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August and 1,181 in September. The figures reached a fresh new peak of 2,059 in October 2019. Then, 1,615 new companies in November and 1,772 in December were recorded, data of the DICA showed. When the online registry was launched in August 2018, 1,816 new companies registered on MyCO.

The figure stood at 2,218 in September 2018, 1,671 in October, 1,431 in November and 1,364 in December 2018. In addition, all registered companies need to file annual returns (AR) on the MyCO registry system within two months of incorporation, and at least once every year (not later than one month after the anniversary of the incorporation), according to Section 97 of Myanmar Companies Law 2017. According to Section 266 (A) of the Myanmar Companies Law 2017, public companies shall simultaneously submit annual returns and financial statements (G-5). All overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year ending, as per Section 53 (A-1) of the Myanmar Companies Law 2017.

As per DICA’s report, more than 16,000 companies were suspended as of September-end for failure to submit AR forms within the due date. Newly established companies are required to submit ARs within two months of incorporation or face a fine of K100,000 for filing late returns. The DICA has notified that any company that fails to submit its AR within 13 months will be notified of its suspension (I-9A). If it fails to submit the AR within 28 days of receiving the notice, the system will show the company’s status as suspended. Companies can restore their status only after shelling out a fine of K50,000 for the AR fee, K100,000 to restore the company on the Register, and K100,000 for late filing of documents. If a company fails to restore its status within six months of suspension, the registrar will strike its name off the Register, according to the DICA notice. 

Source: The Global New Light of Myanmar

The number of ships arriving at Yangon ports was low between February and March 2021, and a total of 24 container vessels are expected to be operated by particular shipping line in May

The number of ships arriving at Yangon ports was low between February and March this year, and a total of 24 container vessels are scheduled to be launch by each shipping line in May. A total of 24 container vessels are scheduled to be shipped to Yangon port in May this year to ensure timely shipments, and special routes will be added to meet market demand, according to the Myanmar Port Authority. In order to facilitate international trade, import and the flow of goods,  a coordination meeting was held to increase the number of container vessels to meet the demand for containers for export.

At the meeting, the Chief Executive Officer, Myanmar Port Authority has reported a drop in container arrivals at Yangon Port since the COVID-19 incident, rising demand for export containers, and called on Myanmar to work together to increase the volume of shipping and reduce the need for container shipping in international trade. The general manager of he Myanmar Ports Authority (MTA) has assessed the current demand for containers in the global market, especially in Asia and Southeast Asia, as well as the current demand for containers and refrigerated containers in order to ensure timely exports to Myanmar, and the safe operation of ports. 

The shipping lines are also currently suspending / suspending some vessels. A total of 24 container vessels are scheduled to be launched by May this year. In the five months since the discovery of the new waterway on the Yangon River, 152 ships carrying more than 30,000 tonnes entered the Yangon Inland Port and Thilawa Port. In the early of 2020, only 200 meter in width, 20,000 tons, with a draft of 6 meter and 167 meters long ships were allowed enter/ exit to Yangon Port, Thilawa Port Area and only 167 meter in width, 15,000-tonne vessels with a draft of 9 meters were allowed to enter / exit to port bridges in Yangon. During that period with the increased allowance of draft, a total of nine vessels over 9 meters draft entered the port area between July and November 2020 and three vessels carrying 15,000 to 30,000 tons of Frost Tonnage arrived and unloaded their cargo.

Source: Daily Eleven

Solar system benefiting rural people residing in off-grid areas

Myanmar emphasizes the improvement of the renewable energy sector by generating 60.3 per cent of electricity from hydropower, 35.6 per cent from natural gas and 4.1 per cent from solar, coal and diesel up to the end of 2020. According to the data, a target was set to increase 12 per cent electricity generation from renewable energy in 2025. In so doing, the Department of Rural Development under the Ministry of Agriculture, Livestock and Irrigation takes responsibilities for rural electrification in the villages, the off-grid areas.

Rural electrification has been implemented since the 2012-2013 financial year. Up to 2015-2016 financial year, a total of 4,807 villages could be electrified across the nation using renewable energy such as solar, small-scale hydropower and biomass with 30 megawatts of installed capacity. Setting an aim to electrify the whole country in 2030, a US$90 million loan was borrowed from the World Bank through the international development association-IDA loan for implementation of the NEP-national electrification plan (off-grid) in addition to the State budget and contributions of the people.

The small-scale power project based on less than 1-megawatt renewable energy was implemented in the 2016-2017 budget year. During the period from 2016-2017FY to 2019-2020FY, 414,461 households from 9,063 villages were electrified through the household solar system, 59,807 sets of the public solar system installed at the schools, dispensaries, religious schools and lamp-posts, solar, hydropower and paddy husk-fired power facilities at 99 project sites and some 30,085 households from 119 villages.

In the projects, the installed capacity of electrification reached 43.956 megawatts. The projects were implemented with the World Bank loan, the State budget, public contribution, the euro 30 million loan from Italy, euro 9 million assistance from KfW and euro 4.87 million for technical assistance from GIZ and the New Zealand government. Currently, the off-grid electrification project benefited some 2.22 million people. In 2020-2021FY, the household solar system will be implemented to benefit 48,974 houses from 757 villages, while 17 small-scale solar power projects will be undertaken with 4,704 sets of public solar systems.

Source: The Global New Light of Myanmar

corn_dry_sun_epa

Lack of demand winds up Myanmar corn exports by sea

Myanmar’s corn exports by sea have come to an end due to the lack of demand, said Chair U Min Khaing of Myanmar Corn Industrial Association.
Myanmar has been delivering corns to the neighbouring countries Thailand and China via the land border. The shipment to Singapore, Malaysia and Viet Nam abruptly stopped owing to zero demand, he added. The lack of demand by sea is attributed to the political changes and disruption in the logistic sector. Myanmar is conveying corns to Thailand through the land border, with a tonne of maize fetching up about 8,000 baht.

Myanmar is allowed for corn export to Thailand’s Maesot 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 maximum tax rate of 73 per cent on corn import to protect the rights of their growers if the corns are imported during the corn season of Thailand, in line with the notification of the World Trade Organization regarding corn import of Thailand, said a corn exporter.

With the local corn consumption growing, Myanmar’s corn export to foreign markets is expected to reach 1.6 million tonnes this year, the association stated. Myanmar exported 2.2 million tonnes of corns to the external market in the past Financial Year 2019-2020 ended 30 September, with an estimated value of $360 million, the Ministry of Commerce’s data showed. At present, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons- winter, summer and monsoon. The country yearly produces 2.5-3 million tonnes of corns.

Source: The Global New Light of Myanmar

page-5

Due to the current situation, both manufacturing and new orders in Myanmar’s manufacturing sector fell fivefold in April, according to the PMI

Due to the current situation, both production and new orders in Myanmar’s manufacturing sector fell fivefold in April, according to the IHS Markit Myanmar Manufacturing PMI released on May 3 The April PMI data show that manufacturing conditions across Myanmar are declining sharply, with many businesses continuing to close due to the current situation.

Purchasing Manager’Index (PMI) New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. Of the five PMI segments in Myanmar (excluding supply delays), the other four fell, according to the survey. Both products and inventories fell by a record five times faster in survey history, while inventories and jobs fell three to four times faster, respectively. Key IHS Markit Myanmar Manufacturing PMI: The only integrated index that shows manufacturing productivity, rising from 27.5 in March last year to 33 in April, indicates an eight-month decline in operating conditions in Myanmar’s manufacturing sector.

Expectations for the next 12 months, meanwhile, fell further in April. Looking to the future, big companies generally expect product growth to increase in April 2022, but overall their expectations are the weakest in more than two years. In April, large companies’ production fell about 60 percent from March. Shortage of raw materials; The combination of poor exchange rates and rising transportation costs Imports have hit record highs since November. Sales prices rose modestly in April as weak demand made it difficult for large companies to pass on cost burdens. The survey is based on original data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

1-17057_republic-of-the-union-of-myanmar-hd-png

Republic of the Union of Myanmar

State Administration Council

Order No 117/2021

7th Waning of Tagu 1383 ME

3 May 2021

Reformation of Union Ministry

The State Administration Council reformed the Ministry of Planning, Finance and Industry as the following ministries in accordance with Section 419 of the State Constitution of the Republic of the Union of Myanmar.
(1) Ministry of Planning and Finance
(2) Ministry of Industry


By order,
Aung Lin Dwe
Lieutenant-General
Secretary
State Administration Council

Source: The Global New Light of Myanmar

border

Muse trade almost halts due to COVID-19 resurgence

The trade between Myanmar and China through Muse border ground to a halt as China tightened the border security and made policy changes in light of the COVID-19. China temporarily shut down Mang Wein and Chinshwehaw checkpoints in early April. Myanmar’s Muse border trade came to a standstill following the closure of the Mang Wein border checkpoint triggered by the detection of the coronavirus cases in the border area, according to the Muse Rice Wholesale Centre. On 29 March, one Myanmar citizen who tested positive for COVID-19 was found in Kyalgaung gems stone market.

It prompted China to restrict border access at the Mang Wein checkpoint, a major border crossing between Muse and Kyalgaung areas. Consequently, there is no trade flowing in and out of the country via the Muse-Mang Wein border. Furthermore, trade through the Kyinsankyawt border, a major checkpoint for fruit exports, is down by 80 per cent, said the traders. The closure of the Mang Wein checkpoint wreaked havoc on the Muse trade. The trade value through Muse land border plummeted to US$2.529 billion between 1 October and 16 April in the current financial year 2020-2021 from $2.738 billion recorded in the corresponding period of last FY, the Ministry of Commerce’s data showed. Suspension in border trade caused a negative impact on perishable fruits.

The policy changes in China’s border exacerbated Myanmar’s exports amid the COVID-19 resurgences, said a Muse trader. Prior to the Mang Wein checkpoint closure, Myanmar daily sent about 2,000 tonnes of rice and 40,000 tonnes of broken rice bags to China. At present, Myanmar’s rice export to China through the Muse land border has stalled amidst the coronavirus concerns. This Mang Wein post plays a pivotal role in trading between Myanmar and China. Myanmar exports rice, broken rice, onion, chilli pepper, pulses and beans, food commodities and fishery products to China. In contrast, electrical appliance, equipment, medical device, household goods, construction materials and food products are imported in the country via Mang Wein. Prior to the COVID-19 pandemic, about 500 trucks were daily flowing in and out of the Myanmar-China border Mang Wein.

Source: The Global New Light of Myanmar