Over 152 larger ships above 30,000 DWT arrive Yangon, Thilawa ports in five months

Yangon inner terminals and outer Thilawa Port received over 152 larger ships of above 30,000 DWT (Deadweight tonnage) in the past five months (February-June) after the draft limit has extended up to 10 metres, and a new navigation channel developed accessing to inner Yangon River. Starting from May, more ships enter Yangon terminals which handled over 11,000 containers and 115,000 metric tons of general commodities, according to a statement of Myanma Port Authority. In June, 40 container ships docked at the terminals.

The draft extension is up to 10 metres, and the international ocean liners can access the inner port for now Myanmar Port Authority ensures smooth freight flow with non-stop operation during the public holidays (17-25 July). Earlier, the larger ships have draft problems preventing their sailing on the Yangon River. The draft was extended to 10 metres. The value of Myanmar’s maritime trade over the past nine months (1 October-9 July) of the current financial year 2020-2021 sank to US$14.29 billion, which plunged from $3.765 billion during the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $6.3 billion, imports had registered $7.7 billion.

Myanmar witnessed a slump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and the political changes. For maritime trade, disruption in the logistic sector and cargo shipping crisis triggered by the COVID-19 impacts battered the maritime trade somehow. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products, while it imports capital goods, consumer goods, and raw industrial materials. The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade. It includes the Yangon inner terminals and the outer Thilawa Port.

Source: The Global New Light of Myanmar

image_6487327

Myanmar exports drop 13.5% amid global pandemic

The COVID-19 pandemic affected the country’s exports in the past nine months (1 October-9 July) of the current financial year 2020-2021, with a drop of 13.5 per cent as against last FY. Myanmar’s exports over the past nine months touched a low of US$11.98 billion, reflecting a tremendous drop of over $1.87 billion compared with a year-ago period of the previous FY, according to data from the Ministry of Commerce. During the corresponding period in the previous FY, exports stood at $13.86 billion, according to data released by the ministry.

The pandemic deals a severe blow to the manufacturing, livestock, fishery, forest, mineral and other service sectors as it disrupted the transport, supply chain and logistics sectors and shut down the events. Additionally, most people demand only staple food. As a result of this, the export sees the growth in the agriculture sector only this year. Drop in the exports of natural gas, gems and jewellery and CMP garments are contributing factors to the slump in exports, the Ministry of Commerce’s statistics showed. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries restricted the border posts to contain the spread of the virus.

Pandemic-induced container shortage pushed up the freight rates in Myanmar, causing delays for exporters. Of the seven export groups, agricultural exports showed an increase of $953.74 million against a year-ago period whereas exports of livestock, forest products, minerals, fishery products and finished industrial goods drastically declined. Between 1 October and 9 July of the current FY, export values were registered at $4.1 billion for agro products, $17.37 million for livestock, $606 million for fishery products, $750 million for minerals, $101.6 million for forest products, $5.98 billion for manufactured goods, and $430.29 million for other goods. This year, Myanmar’s top export countries are listed China, Thailand, Japan, India, the USA, Spain, Germany, the UK, ROK and the Netherlands.

Source: The Global New Light of Myanmar

During the public holidays, the Myanmar Port Authority and ports are providing non-stop operation services to ensure the smooth flow of cargo

During the public holidays, the Myanmar Ports Authority and ports are providing non-stop operations to ensure the smooth flow of cargo. Effectively prevent COVID-19 infections; Control During the nine-day public holiday from July 1 to 25, the Myanmar Ports Authority and ports will provide non-stop services to ensure the smooth operation of international trade and cargo flows, according to the Myanmar Ports Authority. In addition, the deployment of ships will take place on July 18 during the holidays. Delivery Order (DO) will be issued at the Agent Department on July 20 and 22, and if necessary, you can contact the relevant lines of the Agent Department.

To increase imports to meet domestic demand, a total of 37 container vessels will be added to each shipping line this month (July). According to data released by the Myanmar Ports Authority, it is planned to expand the services of various container carriers in order to increase open season exports and increase imports according to domestic demand. More international container and general cargo ships have arrived at Yangon ports since May, handling more than 11,000 containers and 115,000 metric tons of general cargo, according to the Myanmar Ports Authority. Yangon Port is under the supervision and management of the Myanmar Ports Authority. Due to the cooperation of shipping lines and importers, container vessels can be serviced in an average of three days in May 2021.

Shipments and cargo handling have risen since May, handling more than 11,000 containers and 115,000 metric tons of general cargo. In June, up to 40 container vessels entered the country. Maersk Line Myanmar (Sealand Maersk) has launched three new container vessels to meet the needs of maritime trade. The three new ships will have a capacity of 1,750 TEU 21,000 metric tons (9.5 meters in depth) and were built specifically for the Myanmar market. With the expansion of these new container vessels, there will be enough space & equipment for exports and shipments will not have to wait for a booking. The discovery of a new waterway on the Yangon River has allowed international vessels to enter and leave the port of Thilawa, which has been allowed to raise the water limit. According to a statement from the Myanmar Ports Authority, 152 vessels over 30,000 tonnes entered Rangoon port and Thilawa port in the five months since the new dam was allowed to be extended due to the discovery of a new waterway on the Yangon River.

Source: Daily Eleven

CBM sells $78 million over five past months

The Central Bank of Myanmar (CBM) sold US$78 million at an auction rate over the past five months this year. The bullish hard currency gained in local forex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end. In a bid to control the sharp daily gains of the US dollar, the CBM reportedly sold about 6.8 million dollars on 3 February 2021, $12 million in April, $24 million in May, $12 million in June and $24 million as of mid-July in the auction market. Consequently, the exchange rate stands at around K1,650 in mid-July.

The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The CBM’s move is aimed at governing the market volatility and supporting the state’s foreign exchange reserves, the CBM stated. The currency intervention is required to steer the own currency value. It is one of the responsibilities of the CBM to control the price. This is why the CBM practiced the foreign exchange intervention. The dollar gain will benefit the exporters. Yet, it will hike up the local food prices. The currency intervention is required to steer the own currency value.

The current political changes in Myanmar affect the currency market. Some people want to hold the hard currency during the difficult times, a market observer shared his opinion. 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. The rate fluctuated between K1,585 and K1,730 in May and it moved in the maximum of K1,595-1,620 last month.

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

KAT_00111-NS

Myanmar receives 30,000 Remdesivir drugs used in COVID-19 treatment from NSIC

A Tatmadaw aircraft landed at Nay Pyi Taw Airport, carrying 30,000 Remdesivir drugs donated by the National Strategic Investment Corporation Co. Ltd (NSIC) to the State Administration Council from Hyderabad, India, yesterday evening.

Union Minister for Health and Sports Dr Thet Khaing Win received the donated drugs from the General Manager of NSIC at the airport. The Remdesivir drugs are used for emergency treatment of COVID-19. It is the most effective medicine to reduce the death toll from the highly contagious COVID-19 virus worldwide.

It was developed by Gileat Sciences Inc. in the United States of America and is FDA-approved in the US and Europe. In addition, Hetero Labs Limited from India has purchased a production licence from Gileat Sciences Inc, to manufacture and distribute Remdesivir in developing countries. NSIC ordered 30,000 drugs worth 3 billion kyats from India and donated them to the people of Myanmar through the State Administration Council.

Source: The Global New Light of Myanmar

myanmar-apparel

Raw materials import by CMP businesses down by $531mln as of 9 July

Imports of raw materials by CMP (cut-make-pack) businesses has touched a low of US$1.18 billion as of 9 July in the current financial year 2020-2021. It reflects a decrease of $531 million compared with the year-ago period, the Ministry of Commerce stated. The figures plunged from $1.7 billion registered in the last FY2019-2020, the Commerce Ministry’s data indicated. Myanmar’s garment exports witnessed a decline of over 20 per cent in the past eight months (October-May) of the current financial year 2020-2021 compared with a year-ago period on the back of a slump in demand by the European Union market. The raw materials import by the CMP businesses fell simultaneously, stated the Ministry of Commerce. Exports of garments manufactured under the cut-make-pack (CMP) system were valued at US$2.2 billion between 1 October and 28 May in the current FY, according to data from the Ministry of Commerce.

The figures plunged from $2.7 billion in the corresponding period of the last FY2019-2020. The garment industry is facing cancellation of the order and a slump in output, new orders. However, 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 Bestseller starts to resume new orders. Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted. Nonetheless, the COVID-19 infections are spiking in the country, and all the CMP factories are temporarily closed down during the official public holidays (17-25 July). The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries.

Nevertheless, we cannot still expect normalcy for now due to the possible disruption in the logistics and supply sector and other serious consequences amid the political instabilities and the COVID-19 impacts, traders stressed. Myanmar Garment Manufacturers Association (MGMA) reported in the June newsletter that 502 factories are actively running the business. The factories include foreign investment, domestic investment and joint venture businesses. China constitutes a majority of the foreign investment with 267 factories. Myanmar’s manufacturing sector recorded an accelerated downturn in the previous months as political changes and the COVID surge led to factory closures. The layoff is extended, and some workers were forced to return to their hometowns. Turning to prices, higher material costs and unfavourable exchange rate movements contributed to a sharp increase in cost burdens, the HIS Markit stated.

More than 500 members and over 700 garment factories in Myanmar are listed on the MGMA, with about 600,000 workers. Women account for 95 per cent of workers in the garment industry. However, a third of garment industry workers are out of jobs in difficult times. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packing basis. It contributes to the country’s GDP to a certain extent. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. The export value of CMP garments was only $850 million in the 2015-2016FY, 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 and $4.8 billion in the 2019-2020FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

chinese-border-in-shan-state

Thai-Myanmar border trade decreases

Thai-Myanmar border trade has registered a decrease of US$ 10 million between 1 October and 9 July in the current financial year, according to the Ministry of Commerce. Ministry of Commerce data shows that the value of Thai–Myanmar trade at all seven borders touched $3.26 billion in the current financial year, which plunged from $3.27 billion recorded in the year-ago period.

Myanmar delivers goods to Thailand through its sea routes, as well as land borders. Seven border trade camps are open between the two countries, including Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Maesai. Apart from Tachilek and Myawady checkpoints, bilateral trade from the Myanmar-Thai-land borders decreased in relation to the same period of the last year.

The country exports agricultural, forest and animal products, minerals, manufactured goods and other miscellaneous products to neighbouring Thailand. Its imports include medicines, cosmetics, food and beverages, stationery, footwear, clothing, machinery and other commodities. The total trade between Myanmar and four neighbouring countries between 1 October and 9 July reached over $8.44 billion, decreasing by $392 million over the same period last year.

Source: The Global New Light of Myanmar

Phoe-Khwar-copy

Fishery exports plummet to $606 mln as of 9 July

Export earnings from the fisheries sector over the nine months (1 October-9 July) of the current financial year 2020-2021 plunged to US$606 million, which is a significant decrease of $113 million from the year-ago period, according to statistics released by the Commerce Ministry. The figures stood at $719 million during a year-ago period. Myanmar’s fishery exports have slightly declined this year, owing to the COVID-19 impacts and the transport difficulty. The fishery exports through the Sino-Myanmar border have ground to a halt following the consequences and safety measures on the imported seafood amid the COVID-19 pandemic, traders stressed. Myanmar’s fishery export was experiencing a downturn due to the import restrictions triggered by the detection of the COVID-19 on fish imports in China.

China was the second-largest buyer of Myanmar’s fishery products, accounting for US$254 million out of overall fishery export value of $850 million in the past financial year2019-2020. At present, China shut down the border areas in wake of the COVID surge in Myanmar. The fishery sector is dependent on maritime trade only. Food and Agriculture Organization (FAO) and World Health Organization (WHO) issued guidelines to ensure food safety during the COVID-19 pandemic in April 2020. The permitted companies are advised to carry out food safety plans, follow the guidelines of WHO and FAO, formulate the safety management system and suspend the exports if any suspicious foodborne virus or virus infection risk are found in the products.

The export is likely to resume once the products meet food safety criteria set by the General Administration of Customs of the People Republic of China (GACC). Myanmar Fisheries Federation stated that only the G2G pact can tackle problems faced in the export of farm-raised fish and prawns and ensure smooth freight movement between countries to bolster exports. During the last FY2019-2020, MFF expected to earn more than $800 million from fishery exports and it reached a target. Myanmar exports fisheries products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union. The MFF is making concerted efforts to increase fishery export earnings by developing fish farming lakes that meet international standards and adopting advanced fishing techniques.

To ensure food safety, the foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates. To meet international market standards, fishery products must be sourced only from hatcheries that are compliant with GAqP. The MFF is working with fish farmers, processors, and the Fisheries Department under the Ministry of Agriculture, Livestock, and Irrigation to develop the GAqP system. Processors can screen fishery products for food safety at ISO-accredited laboratories under the Fisheries Department. Myanmar’s economy is more dependent on the agricultural sector to a large extent. Also, the fisheries sector contributes a lot to the national gross domestic product (GDP).

Its fishery production including shrimps and saltwater and freshwater fish are far better than the regional countries. If the country can boost processing technology, it will contribute to the country’s economy and earn more income for those stakeholders in the supply chain, Yangon Region Fisheries Department stated. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar. Myanmar exported 340,000 tonnes of fishery products worth $530 million in the 2013-2014FY, 330,000 tonnes worth $480 million in the 2014-2015FY, 360,000 tonnes worth $500 million in the 2015-2016FY, 430,000 tonnes worth $600 million in the 2016-2017FY, 560,000 tonnes worth $700 million in the 2017-2018FY and 580,000 tonnes worth over $730 million in the 2018-2019FY, respectively, according to the Commerce Ministry. 

Source: The Global New Light of Myanmar

pay

The Central Bank of Myanmar announces acceptance of electronic payments for purchases of medicines and medical supplies from private hospital and receiving medical treatment at clinics

The third wave of Covid-19 is occurring, and it is difficult to get to the bank as Stay at Home programs are being carried out in the regions and states, the Central Bank of Myanmar announces the acceptance of electronic payment method for the purchase of medicines and supplies. The Central Bank of Myanmar is working to accelerate the transition to a digital economy and to make payment systems more efficient.

Banks have been instructed to target more payments with A/C Transfer Digital Payments and to allow cash withdrawals up to 50% of the monthly sales (Pay/Wallet/Cards/Account Transfer) of merchants and affiliates to be vetted only two or three times a month. The third wave of Covid-19 is occurring in Myanmar and Stay at Home programs are being carried out in the regions and states. Clinics have difficulty accessing banks, are unable to handle infectious cash, and other critically ill patients have difficulty paying for medical bills in cash.

Therefore, the Ministry of Health and Sports, The Department of Health should prioritize the payment of medical treatment, purchase of medicines and medical supplies at private hospitals and clinics licensed by the Department of Health by using the electronic payment method in the paragraph (1) above, and the maximum payment received by Digital Payment shall be 50% per month. The cash will be disbursed two or three times and the cash will be disbursed by the relevant banks. The Central Bank has announced that coordination is being made between various clinics.

Source: Daily Eleven

Taxis

YRTC suspends Yangon city taxis, freight vehicles registration services

The Yangon Region Transport Committee (YRTC) has temporarily suspended the city taxis and freight vehicles registration services since 15 July due to a recent third wave of COVID-19 disease, according to the YRTC. It had been only two weeks that the services were resumed as per the COVID-19 guidelines on 1 July, after being suspended since 16 March 2020.

The registration services of YRTC is reportedly suspended since the Department of Road Transport and The Department of Transport Planning have suspended public services, according to the Joint Secretary of the YRTC. The resumption date will be announced in advance. However, it is difficult to say for sure because of the temporary suspension of services, he added.

During the resumption of services for two weeks, the YRTC provided 825 city taxis registration services at No.297, Thanthumar Road, South Okkalapa Township and 1,943 freight vehicles registration services near the office of the Transport Planning Department on Strand Road. At present, the total number of city taxi registered vehicles in the Yangon Region is over 65,000, with more than 20,000 taxi licences from other regions and states. A total of around 50,000 freight vehicles are registered, according to YRTC.

Source: The Global New Light of Myanmar