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Myanmar records trade surplus on lower import

Myanmar’s lower import nearly ten months (1 Oct-23 July) of the 2020-2021 financial year have resulted in a positive trade balance of US$353.644 million, according to data provided by the Ministry of Commerce. Myanmar’s exports surpassed imports in international trade although overall trade value declined compared to the same corresponding period of FY 2019-2020. Nearly ten months, the country’s exports were estimated at $12.3 billion, imports were valued at $11.95 billion this FY. The external trade drastically sank t $24.26 billion from $30.37 billion recorded in the year-ago period. Myanmar’s trade gap was $1.5 billion in the year-ago period, according to data provided by the Ministry of Commerce.

“This is a positive balance of trade. A trade surplus is harmful only when the government uses protectionism,” a trader points out. Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts this year against the year-ago period. Both sea trade and border trade dropped. The neighbouring countries tightened the border security and restricted the trading in certain border areas. For maritime trade, disruption in logistic sector, spikes in container rates and banking restriction dragged down the trade. 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 much on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. Thecountry mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020 FY, $1.14 billion in the 2018-2019 FY, $1.3 billion in the previous mini-budget period (April-September, 2018), $3.9 billion in the 2017-2018 FY, $5.3 billion in the 2016-2017 FY, and $5.4 billion in the 2015-2016 FY, according to statistics released by the Central Statistical Organization.

Source: The Global New Light of Myanmar

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Trade volume between Myanmar-Thai border up $33 mln this FY

The trade volume between Myanmar and Thailand in financial year 2020-21 hit a total of US$3.36 billion in total, Ministry of Commerce statistics showed. According to the ministry, Myanmar’s exports to Thailand reached $ 3.2 billion while imports hit $2.1 billion. This FY’s figures are increased by $33 million, compared to the same period in the last FY.

Myanmar mainly conducts border trade with neighbouring Thailand through seven border checkpoints namely Tachileik, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei gates. Among those trade points along the Myanmar-Thailand border, Myawady-Mae Sot route is the most important, carrying about 70 per cent of trade between two countries. As of 23 July of this FY, Myawady border checkpoint topped with $1.49 billion of bilateral trade.

In Myanmar, most of the goods mainly imported from Thailand are raw materials for manufacturing, and construction material. So, the transportation route is import for two countries’ economies and businesses. Myanmar’s exports to Thailand were primarily agriculture and livestock products, and imports from Thailand were mainly non-alcoholic beverages, fabric and yarn, motorcycles and related parts, and construction material. Thailand is Myanmar’s second-largest trade partner and third-largest foreign investor.

Source: The Global New Light of Myanmar

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Raw materials import by CMP businesses plunge into $1.2 bln nearly ten months

IMPORTS of raw materials by CMP (cut-make-pack) businesses have sunk to US$1.24 billion as of 23 July in current financial year 2020-2021 since October 2020, which reflects a decrease of $558.26 million compared with the year-ago period, according to the Ministry of Commerce. The figures plunged from $1.79 billion registered 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 (Oct-May) of the current financial year 2020-2021 compared with a-year ago period on the back of slump in demand by European Union market. The raw materials import by the CMP businesses fell simultaneously, the Ministry of Commerce stated.

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 last FY 2019-2020. The garment industry is facing cancellation of order and 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 start 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 logistics and supply sector and other serious consequences amid the COVID-19 impacts, traders stressed. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis, and 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 2015-2016 FY, but it has tripled over the past two FYs. In the 2016-2017 FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018 FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019 FY and $4.8 billion in the 2019-2020 FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

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Myanmar’s maritime trade drops by 5.6 bln in 10 months

Myanmar’s maritime trade reached US$ 1.57 billion as of 23 July in the current financial year 2020-21 which started in October, according to the Ministry of Commerce. The country’s export through maritime routes hit $ 6.58 billion while its import reached $ 9.11 billion during the period from 1 October to 23 July this year. Compared to the same period in the 2020-21 fiscal year, imports fell by $3.96 billion, while exports reported a decrease of $1.66 billion.

Total external trade value saw a significant drop of $5.6 billion compared to the same period of last FY. Both maritime trade and border trade dropped amid the coronavirus impacts. The country currently has nine ports involved in the sea trade. Yangon Port is the main gateway to Myanmar’s maritime trade and includes Yangon inner terminals and the outer Thilawa Port.

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 external trade stood at $36.73 billion in the 2019-2020 FY, $35.147 billion in the 2018-2019 FY, $18.728 billion in the 2018 six-month mini budget period, $33.578 billion in the 2017-2018 FY and $29.209 billion in the 2016-2017 FY respectively, as per the Commerce Ministry’s statistics. Meanwhile, the country’s total foreign trade registered over $12.31 billion as of 23 July this 2020-21 FY, of which its border trade registered over $5.7 billion.

Source: The Global New Light of Myanmar

Fishery exports cross $700 mln

Marine product exports plummet to $626 mln as of 23 July

Export earnings from the fisheries sector nearly ten months (1 Oct-23 July) of the current Financial Year 2020-2021 plunged into US$626.59 million, according to the statistics released by the Commerce Ministry. Myanmar’s marine product exports have dramatically declined this year, owing to the COVID-19 impacts and the transport difficulty. Although some offshore and inshore trawlers started to go fishing from 15 July, they are battered by the high cost of fuel oil and fishing equipment and supplies. Additionally, the exporters companies pull down the price. The domestic fish industry flounders due to COVID-19 pandemic. The coronavirus pandemic shut down the wedding, donation events, festivities and restaurants. It also imposes difficulties on transportation. The restrictions caused slump in fish consumption in local market.

Moreover, the marine product exports through Sino-Myanmar border has 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 marine products, accounting for US$254 million out of overall marine product export value of $850 million in the past financial year 2019-2020. At the present time, 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’s Republic of China (GACC). The Myanmar Fisheries Federation stated that only G2G pact can tackle problems faced in the export of farm-raised fish and prawn, and ensure smooth freight movement between countries to bolster exports. During the last FY 2019-2020, MFF expected to earn more than $800 million from marine product exports against the target. Myanmar exports marine products such as fish, prawn, and crab to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and the countries in the European Union.

The MFF is making concerted efforts to increase the marine product export earnings by developing fish farms which meet international standards and adopting the advanced fish farming 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, the marine 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 agricultural sector to a large extent.

Also, fisheries sector contributes a lot to the national gross domestic product (GDP). Its marine product 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 marine products worth $530 million in the 2013-2014 FY, 330,000 tonnes worth $480 million in the 2014-2015 FY, 360,000 tonnes worth $500 million in the 2015-2016 FY, 430,000 tonnes worth $600 million in the 2016-2017 FY, 560,000 tonnes worth $700 million in the 2017-2018 FY and 580,000 tonnes worth over $730 million in the 2018-2019 FY respectively, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

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One million units of COVID-19 vaccines arrive from China in second batch

The second batch of one million Sinovac COVID-19 vaccines out of two million vaccines purchased from China arrived at the Yangon International Airport yesterday.

Dr Aye Tun, Deputy Minister for Health, and region health departmental officials received the vaccines at the airport.
The vaccines are kept at central cold chain of Public Health Department in Mayangon Township.

The Ministry of Health distributes the vaccines across the nation depending on the population and infection rate, and the people will be vaccinated at the public hospitals and vaccination gathering points according to the National Development Plan.

Source: The Global New Light of Myanmar

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Exports to Viet Nam cross $150 mln in seven months

The value of export to Viet Nam in the past seven months (October-April) of the current financial year 2020-2021 exceeded US$150 million while import was valued at only $25 million, according to the data of the Ministry of Commerce. The value of trade between Myanmar and Viet Nam totalled $375.35 million in the current FY.

Myanmar’s export items to Viet Nam are base metal, pulses, rice, broken rice, rubber, cigarette, garment, maize, tobacco and other products, whereas it imports electrical equipment and apparatus, transport equipment, plastics, mechanical appliances, paper, paperboard, fertilizers, pharmaceuticals, cotton fabric, artificial and synthetic fabrics, woven fabrics, cotton fabric, chemical elements and compounds, dairy product and other products.

Bilateral trade with Viet Nam grew year over year, however the global pandemic affected the trade. Viet Nam is listed as the eighth largest trade partner of Myanmar, with an estimated capital of $2.224 billion as of June 2021, according to statistics released by the Directorate of Investment and Company Administration.

Source: The Global New Light of Myanmar

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Myanmar attracts over $428 mln of FDI from Singapore this FY

Thirteen Singapore-listed enterprises brought in US$428 million into Myanmar between October 2020 and June 2021, according to the data released by the Directorate of Investment and Company Administration (DICA). The UK-listed enterprise brought in large investments of $2.5 million in May 2021 and became the top source of FDI in Myanmar. Singapore is placed as the second largest investor in Myanmar. Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors.

Those enterprises listed from Brunei, China, Thailand, India, Malaysia, Republic of Korea, Viet Nam, Marshall Island, Samoa, Hong Kong (SAR) and China (Taipei) also made investments this year. Myanmar has drawn foreign direct investment of more than US$3.76 billion during Oct-Jun period, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, DICA’s statistics indicated. Of 44 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 30 June of the current FY, 23 enterprises pumped FDI into the manufacturing sector. Power sector received six large project and livestock and fisheries sector attracted six projects.

Other service sector drew five projects while agriculture sector pulled two projects and one foreign enterprise each entered industrial estate and the hotel and tourism sectors. MIC intends to reach FDI target of $5.8 billion for the current FY 2020-2021. Singapore has stood as the largest foreign investor in Myanmar since 2012, pulling in the FDI of $1.85 billion in the FY 2019-2020, $2.4 billion in the FY 2018-2019, $724.4 million in the mini-budget period (April-September, 2018), $2.16 billion in the 2017-2018 FY, $3.8 billion in the 2016-2017 FY, $4.25 billion in the 2015-2016 FY, $4.29 billion in the 2014-2015 FY, $2.3 billion in the 2013-2014 FY and $418 million in the 2012-2013 FY respectively. Additionally, Singapore emerged as the second largest foreign investor in the Thilawa Special Economic Zone, after top investor Japan.

Source: The Global New Light of Myanmar

Domestic gold price gains on global cues

The current rally in the domestic market comes from the strength of the bullish international market and Kyat weakening against the US dollar, according to Yangon Region Gold Entrepreneurs Association (YGEA). The global gold price stood at above US$1,813 per ounce, while the Central Bank of Myanmar set a US dollar exchange rate at an auction rate of K1,664, resulting in the gold price gain in the domestic market. The price of precious pure yellow metal is possible to stay in the bull market tracking the dollar gain and increase in the international gold market. It touches a high of K1,572,000 per tical (0.578 ounces, or 0.016 kilogrammes).

The price is possible to continue rising as the global rally happens yearly in the coming months, U Myo Myint elaborated. In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February. In March, the rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March). The price had registered the highest of K1,455,000 (30 April) and the lowest of K1,389,000 (1 April). The price reached an all-time highest of K1,709,000 (12 May) and the lowest of K1,447,000 in May. The price moved in the maximum of K1,575,500 (11 June) and the minimum of K1,543,000 (19 June).

Last month, it fluctuated between K1,562,300 (26 Jul) and K1,587,000 (K1,587,000), the gold traders said. According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal priced moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019. 

Source: The Global New Light of Myanmar

Stock market declines in July

The number of shares traded on the Yangon Stock Exchange (YSX) plunged to 36,855 shares in July 2021 and the trading value also slipped to K198 million, the YSX’s monthly report indicated. Under Section 4 of the Trading Business Regulations, the stock trading was closed from 17 to 25 July 2021 as the long public holidays for COVID-19 prevention, control and treatment activities. The market resumed on 26 July 2021 as usual. In June, 79,296 shares worth of K430.285 million were traded on the exchange. Amata Holding Public Co., Ltd. (AMATA) was newly listed on the exchange on 3 June, with the basic price of K4,500.

Last month, 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), the Ever Flow River Group Public Co., Ltd (EFR) and AMATA were traded in equity market. The share prices per unit were closed at K8,900 for FMI, K3,300 for MTSH, K7,700 for MCB, K20,000 for FPB, K2,650 for TMH, K3,100 for EFR and K5,000 for AMATA, respectively. 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 with 78,642 shares worth of K432.448 million 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 the COVID-19 crisis and current political conditions, he added. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has been able to continue operating without stopping trading. In 2020, the value of stocks traded on the exchange reached a peak of K1.48 billion in February, whereas 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 K13.39 billion, were traded on the exchange in 2019, according to the annual report released by the exchange. 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 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, 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