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Myanmar rice export earns $386 mln in five months

Myanmar has generated US$386 million income from exports of rice and broken rice in the first-five months (Oct-Feb) of the current financial year 2020-2021, according to Myanmar Customs Department. At present, rice shipment to European countries is declining. However, Myanmar is constantly delivering rice and broken rice to China and Bangladesh. The market cools down for now due to the transport difficulties and dollar gains. The price is quite stable with the sluggish trade.

Next, China’s Customs granted licences to 47 Myanmar companies on 26 February 2021 to legally export the rice to China through Muse land border this year. The authorized companies for rice export to China increased this year as against last year. However, the permitted volume of rice for exports has not been confirmed yet, said U Min Thein, vice chair of Muse Rice Wholesale Centre. Myanmar traders are sending rice to China through Muse border under new permits at the present time.

Nevertheless, limited money withdrawal permitted by the private banks is disrupting the rice exports. Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops, said U Ye Min Aung, President of Myanmar Rice Federation (MRF). Weather changes affected irrigation water resource availability on 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 which ends 30 September, with estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar

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Soap, detergent powder and toothpaste imported through the Myawaddy border have been suspended

Myawaddy Trade Zone OSS Customs Department has sent the instructions to business owners to suspend import of Thai-made soap and toothpaste into the domestic market through Myawaddy on the Myanmar-Thailand border starting from 4 June,2021.

The Department of Commerce direct to reduce foreign exchange, and to protect the market competition, thus among the imports that are allowed to be imported from the border areas (ITC) card, imports of soap, detergent powder and toothpaste has been instructed to suspend according to the notification on (4-6-2021). The Department of Commerce has temporarily banned imports of four food stuffs including varieties of soft drinks, coffee mixes and condensed milk made in Thailand, from border crossings since May 1,and direct to import only by sea.

About 50 percent of the Myawaddy border traders say, among Thai imports into the domestic market, assorted soft drinks, coffee tea mix; and condensed milk to reduce foreign exchange; among the imports that are allowed to be imported from the border areas (ITC) card to protect the market competition on the products, importation of soap, detergent powder and toothpaste will be suspended from (4-6-2021). The suspension of four Thai-made food items across the border has hurt traders at the Myawaddy border, as well as boosted domestic consumption.

Source: Daily Eleven


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MGMA reports 564 factories actively running, 177 inactive as of May

The Myanmar Garment Manufacturers Association (MGMA) reported in May newsletter that 564 factories are inactively running the business, and 177 has no operation. The factories include foreign investment, domestic investment and joint venture businesses. China constitutes a majority of the foreign investment with 302 factories. The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestsellers starts to resume new orders. Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted.

Myanmar’s manufacturing sector is primarily concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis. It contributes. to the country’s GDP to a certain extent. Myanmar’s garment export exceeded US$1.4 billion in the first five months (Oct-Feb) of the current financial year 2020-2021, according to the data released by the Ministry of Commerce. Myanmar’s manufacturing sector has recorded an accelerated downturn owing to the factory closure triggered by the coronavirus pandemic and the political changes. The exports of finished industrial goods drastically fell to US$4.43 billion over the first half (1 Oct-21 May) of the current financial year 2020-2021, an extreme drop of $1.69 billion 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 goods totalled $6.13 billion during the same period in the 2019-2020 FY. The IHS Markit Myanmar Manufacturing Purchasing Manager’s Index, a composite single-figure indicator of manufacturing performance, signalled the sharpest deterioration in manufacturing business conditions in May. The higher material costs and unfavourable exchange rate movements contributed to a sharp increase in cost burdens, causing constraint to complete the order. It can do more harm to the foreign investment sector if the problem is still not resolved. According to HIS Markit’s statement, the PMI measures the output, new orders, performance, delays in the manufacturing process and stocks of both inputs and finished goods. More than 500 members and over 700 garment factories in Myanmar are listed on the MGMA, with an employment of over 400,000 workers. However, a third of garment industry workers are out of jobs in difficult times.

Source: The Global New Light of Myanmar

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Japan-based ACECOOK instant noodle production to be suspended temporarily from end of June due to difficult access to raw materials and cash flow problems

Japan-based ACECOOK Myanmar Co., Ltd, which operates in the Thilawa SEZ, announced that it will be suspended from the end of June due to financial problems and difficulties to access to raw materials. ACECOOK Myanmar Co., Ltd has been distributing healthy and delicious instant noodles to the people of Myanmar since 2014. Due to the current situation in Myanmar, ACECOOK Myanmar Co., Ltd has difficulty in obtaining raw materials, difficulties in manufacturing; ACECOOK Myanmar Co., Ltd will immediately suspend the production and distribution of instant noodles from June 30, 2021 due to cash flow problems.

Therefore, starting from June 1, 2021, all office activities will be suspended and the social network (ACECOOK Myanmar Facebook Page) will no longer be able to reply to messages and answer phone calls. As of March 2021, there are 96 factories operating in Thilawa SEZ Zone A. There are a total of 122 operations in Zone B, with a total of 122, according to the Myanmar Special Economic Zone Central Committee. About $ 1.4 billion in foreign investment has flowed into the Thilawa SEZ in five years, according to the Directorate of Investment and Company Administration (DICA).

From the 2016-2017 fiscal year to the end of December 2020, up to 60 investment companies from 18 countries have invested in the Thilawa SEZ. The total investment of these projects is $ 1.382 billion. During that period, Japan invested the largest amount in the Thilawa SEZ with $ 447.367 million. Singapore is the second largest investor with $ 415.423 million. Thailand is the third largest investor with $ 175.588 million. The foreign investment in Thilawa SEZ is mainly in six sectors, including manufacturing, trade, other services, transportation, hotel and tourism and real estate.

Source: The Global New Light of Myanmar

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According to the survey, ASEAN manufacturing output in May rose to record high in Indonesia, but with a sharp drop in Myanmar

ASEAN manufacturing output rose to a record high in Indonesia in May, with a sharp drop in Myanmar, according to the IHS Markit ASEAN PMI, released on June 2, 2021. Asean’s core PMI was recorded at 51.8 in May, down slightly from 51.9 in April, signaling the third consecutive month of growth in ASEAN production, the second-highest since July 2014. By country, the data shows uneven May data, and when Indonesia saw record growth, we saw a sharp decline in Burma. Four of the seven countries saw growth in May, said Lewis Cooper, an economist at IHS Markit. In May, Indonesia led the country-by-country growth in Asean. The PMI rose to a record 55.3, indicating gains, the survey said. Singapore has turned to growth after a slump in April. 

The PMI of 51.7 was the highest in three months, signaling a modest improvement in manufacturing conditions. Malaysia has been above the PMI for more than 50 consecutive months, but its monthly growth has slowed significantly. The Philippines’ manufacturing output was significantly stable after the April drop, with a PMI of 49.9, according to the survey. In Thailand, the situation eased in May and the PMI fell to a three-month low of 47.8. Finally, Myanmar’s manufacturing decline continued in the middle of the second quarter. The rate of decline has weakened for two consecutive months, but overall remains strong.

According to the IHS Markit Myanmar Manufacturing PMI, released on June 1, 2021, imports and commodity prices rose to record lows last May, making it difficult to complete orders, which could pose a threat to foreign direct investment, according to the IHS Markit Myanmar Manufacturing PMI, released on June 1, 2021. Asean’s overall manufacturing sector grew strongly in May. The latest development is said to have been a major contributor to both progress in production and new orders. Growth in new orders has slowed to an all-time high in eight years and remains strong, according to the survey. The study looked at seven countries including Singapore, Malaysia, Vietnam, Indonesia, Myanmar, and Philippines. The survey is based on data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

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MADB to disburse K5 bln monsoon crop loans for over 6,000 farmers in Myeik District

The Myanma Agricultural Development Bank (MADB) (Myeik branch) of the Ministry of Planning, Finance and Industry is implementing to provide K5 billion worth of agricultural loans for the monsoon rice crop season in order to cover 6,122 farmers in five townships in Myeik District. The MADB Myeik branch will disburse a total of 6,122 farmers (36,671 acres) monsoon crop loans, paying out K150,000 per acre.

The growers can take out loans for a maximum of ten acres. The interest is set at 5 per cent like the rate of the previous years. The respective township branch will pay out the loan. The loans will cover 3,141 farmers in Myeik Township, 1,194 in Kyunsu Township, 1,651 in Taninthayi Township, 42 in Bokpyin Township, and 94 in Kawthoung Township.

Those farmers who have already paid off the previous loan will be prioritized in the loan application process. The MADB Myeik branch has provided K34.2 million worth of loans to the farmers with 228 acres so far. MADB provides annual agricultural loans to small-scale farmers, intending to have food self-sufficiency and export competitiveness for Myanmar’s agricultural products in order to boost exports, promote the interests of the farmers and enhance their socio-economy. 

Source: The Global New Light of Myanmar

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Domestic black bean price jumps to over K1.08 mln per tonne

According to the Yangon Region Chambers of Commerce and Industry, the domestic black bean price has jumped to over K1.08 million per tonne (Bayintnaung Commodity Depot). Although the black bean price on 1 May was K888,500 per tonne, the price jumped to about K1,085,000 per tonne on 4 June, increasing around K200,000 per tonne in only over one month, according to the bean market data.

Black bean price has increased when India, the primary buyer of Myanmar pluses, has redefined black bean, green gram and pigeon pea bean from a restricted commodity to a free import commodity. However, the price has not reached the price that hit K1.3 million per tonne at the end of 2019. Since 2017, India has been setting import quota on beans, including black beans and pigeon peas, under the Indian government plus foreign trade policy for 2015-2020.

At present, the Ministry of Commerce and Industry of India has issued proclamation No. S.O.1858 (E) on 15 May 2021 that the three pluses have been changed from a restricted commodity to a fee import commodity as of 31 October 2021. The black bean plantations yielded around 400,000 tonnes annually in Myanmar, and the bean is mainly exported to India. Similarly, Myanmar has also produced about 50,000 tonnes of pigeon peas yearly and exported them chiefly to India. The black bean, which is mainly bought from India, is grown primarily in Myanmar. Other pluses, including green gram and pigeon pea, are produced in Africa and Australia in addition to Myanmar, according to Myanmar Pulses, Beans and Sesame Seeds Merchants Association.

Source: The Global New Light of Myanmar

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Over 2,600 companies register via MyCO system in five months

According to the statistics released by the Directorate of Investment and Company Administration (DICA), the number of companies registered on the online registry system MyCO reached over 2,600 in the first five months of this year.
According to the Myanmar Companies Law 2017, registration must be done using the electronic registration system (MyCO), which was introduced on 1 August 2018. This year, the number of registered companies on MyCO was 1,373 in January, 188 in February, 163 in March, 254 in April and 686 in May, the DICA’s statistics showed. According to DICA, 100 per cent of MyCO system users are practising online application instead of manual filings. In 2020, the figures stood at 1,415 in January, 1,298 in February, 1,015 in March, 348 in April, 798 in May, 1,314 in June, 1,650 in July, 1,551 in August and 1,378 in September, 1,693 in October, 1,099 in November and 1,521 in December, the data of  DICA showed. In 2019, the number of registered companies mounted to 1,733 in January, 1,419 in February and 1,108 in March, 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August, 1,181 in September, 2,059 in October, 1,615 in November and 1,772 in December as per statistics of the DICA.

When the online registry was launched in August 2018, 1,816 new companies got registered via MyCO. The figures stood at 2,218 in September 2018, 1,671 in October, 1,431 in November and 1,364 in December 2018. Further, all registered companies (old and new) need to submit annual returns (AR) on MyCo system within two months of incorporation and at least once a year (not later than one month after the anniversary of incorporation), according to Section 97 of Myanmar Companies Law 2017. According to Section 266 (A) of the Myanmar Companies Law 2017, public companies must submit the annual returns and the financial statements (G-5) at the same time. And, all overseas corporations must submit annual reports in the prescribed format on MyCo in 28 days after the end of the financial year under Section 53 (A-1) of the Myanmar Companies Law 2017.

The companies have to submit AR within AR due date. However, more than 16,000 companies were suspended as of September 2020 because they have filed to submit AR. Therefore, the newly established companies are requested to submit AR within two months of incorporation. If they fail to do so, they may face a fine of K 100,000. If the AR form is filed to submit within 13 months, the system will send a suspension (I-9A) notification letter in company status. Besides, if the AR form is also filed to submit after receiving (I-9A) within 28 days’ notice, the system will show suspended in company status. Under this situation, the companies can restore their status by paying AR and late fees. Then, the companies need to submit the I-9D form. The suspended companies will have to pay a fine of K50,000 for the AR fees, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents. If AR forms are filed to submit again within six months of suspension, the system will show struck off in company status.

Source: The Global New Light of Myanmar

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Myanmar foreign trade tops $2.176 bln as of 21 May

Myanmar’s external trade between 1 October and 21 May in the current financial year 2020-2021 plummeted to US$2.1 billion, a sharp drop of over $1 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 $3.2 billion, according to data released by the ministry. Over the past seven months, Myanmar’s export was worth over $9.475 billion, which plunged from $9.8 billion registered a year-ago period.

Meanwhile, the country’s import was valued $11.65 billion, showing a significant decrease of $1.358 billion compared with the last FY. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened the border security and limited the trading time to contain the spread of the virus. At present, the traders have transaction problem triggered by the restriction 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 external trade stood at $36.73 billion in the 2019-2020FY, $35.147 billion in the 2018-2019FY, $18.728 billion in the 2018 six-month interim period, $33.578 billion in the 2017-2018FY and $29.209 billion in the 2016-2017FY, respectively, as per the Commerce Ministry’s statistics. 

Source: The Global New Light of Myanmar

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Stocks on YSX inch up in May

The number of shares traded on the Yangon Stock Exchange (YSX) climbed to 78,642 shares in May 2021, generating the trading value of K432.448 million, the YSX’s monthly report indicated. In February 2021, K442 million worth of 77,388 shares were traded on the exchange. The figures extended further drops to K110 million worth of 19,816 shares in March 2021. Then, the market slightly rose in April with K280 million worth of 42,964 shares. The stocks maintained in the bull market in May as well. 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. In May, the 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) were traded in the equity market. The share prices per unit were closed at K9,100 for FMI, K3,500 for MTSH, K7,800 for MCB, K19,500 for FPB, K2,750 for TMH and K3,100 for EFR, respectively. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has continued 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. 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, according to the annual report released by the exchange. Additionally, Amata Holding Public Co., Ltd. (AMATA) was listed on the exchange on 3 June, with an introductory price of K4,500.

Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. Furthermore, YSX launched a pre-listing board (PLB) on 28 September 2020 in order to provide unlisted public companies with fund-raising opportunities and build a bridge toward listing on YSX, YSX stated. The YSX 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.

Source: The Global New Light of Myanmar