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Imports plummet to $13.4 bln this FY: MoC reports

The value of Myanmar’s imports nearly the past eleven months of the current financial year 2020-2021 sank to US$13.4 billion from $17.55 billion recorded in the same corresponding period of last FY, the Ministry of Commerce’s data indicated. All the import groups including the consumer, capital, intermediate goods, and CMP businesses plunged in the current FY. The drop in foreign direct investment this year negatively affected the trade. Between 1 October and 27 August this FY, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts were brought into the country. Their import value was estimated at $4.33 billion. The figure was over $2.3 billion lower than those values registered in the same period of the previous FY.

Meanwhile, Myanmar imported consumer products worth over $3 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $82.7 million compared with the same period in the previous FY. Intermediate 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 $4.65 billion from $5.79 billion registered during the year-ago period. During the same period, raw materials worth over $1.4 billion were also imported for the Cut-Make-Pack (CMP) garment sector, showing a decrease of $584 million compared with the last budget year.

At present, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is struggling because of the cancellation of orders from the European countries and suspension of trading by western countries amid the COVID-19. Therefore, import values of raw materials by CMP businesses have been dropping. At present, the traders have transaction problems triggered by the restriction of the private banks. Furthermore, the pandemic triggered the cargo shipping crisis, a market observer shared his opinion. 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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Trade deficit shrinks to $154 mln over 11months as import slumps

MYANMAR’S trade deficit in the past eleven months (1 Oct- 27 Aug) of the 2020-2021 financial year narrowed to US$154 million on account of the lower import, according to data provided by the Ministry of Commerce. During the past eleven months, the country’s exports were estimated at $13.2 billion, imports were valued at $13.4 billion this FY. The external trade drastically sank to $26.7 billion from $33.66 billion recorded in the year-ago period. Myanmar’s trade gap was $1.4 billion in the year-ago period, according to data provided by the Ministry of Commerce.

Myanmar witnessed a slump in export and import triggered by the coronavirus impacts this year against the year-ago period. Both sea trade and border trade dropped. The neighbouring countries tighten the border security and restrict the trading in certain border areas. For the 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 more 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. The country mainly imports essential goods, construction materials, capital goods, hygienic materials, 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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Four million doses of Chinese vaccines arrive in Myanmar

Four million Sinopharm vaccines out of 24 millions purchased from China arrived at the Yangon International Airport yesterday evening. These vaccines will be distributed to respective regions and states via land and air routes with the help of Tatmadaw (Air) starting today.

Officials will vaccinate the people over the age of 65 and 55, people with disabilities, ethnic armed organizations, people with chronic disease and people at IPD camps in addition to the priority groups.

There are 4,944,654 people who get vaccinated until 11 September while 3,239,764 people are fully vaccinated and 1,704,890 people get their first-time vaccination. Total doses of vaccine delivered are 8,184,418. The Ministry of Health also urged the people to get vaccinated without fail, and those who get first jabs to receive second dose on the due date at the nearest vaccination sites.

Source: The Global New Light of Myanmar

The central bank has announced that it will remove the widening gap between the selling price and the buying price, and some traders say the exchange rate fluctuations will not be affected

The central bank announced on September 11 that it would remove the widening gap between the selling price and the buying price. The sale of foreign currency issued on August 8; Purchasing The Central Bank has issued a directive to set the CBM Reference Rate at the Mid Rate and the Purchase Price and Purchase Price within the range of 0.8%. The directive was canceled. Licensed banks trading foreign currency.

 The Central Bank of Myanmar said in a statement that the holders of foreign exchange licenses have been notified. Dr Soe Tun, a businessman, said the directive would not affect the value of the dollar traded in the market. In the past, when there was a price tag, the actual price on the board and at the counter was different from the price on the board, he said. It says 1,700 on the board, but it can’t be bought. 

Only people you know are buying and selling. It is 2,000 outside. It is also difficult to buy and sell. With this release, it will be easier to buy and sell because Molo is set as freely as before. It has little to do with price fluctuations. There will be more trade. Currently, the price set by the central bank is one in the foreign exchange market and one in the foreign exchange market. According to the prices on September 11, local foreign exchange counters and banks set the price at around US $ 1,746 per dollar, but the actual market price was between US $ 1980 and 2010.

Source: Daily Eleven

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YRIC endorses over $1 mln worth project, creates 851 jobs for residents

The Yangon Region Investment Committee (YRIC) endorsed one foreign enterprise in the manufacturing sector, with an estimated capital of US$1.095 million, as per the YRIC’s videoconferencing convened at 10 am on 8 September. Yangon Region Chief Minister U Hla Soe, who also acts as chairman of YRIC, the committee members and the investors joined the video conferencing to ensure the foreign capital inflow during the COVID-19 pandemic.

At the meeting, YRIC endorsed one foreign investment business with a total capital amount of $1.095 million in the manufacturing sector and is expected to create 851 local job opportunities. Moreover, they discussed the general issues of the other four companies. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to grant permissions for local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million.

The investors can inquire about the investment and submit a proposal by dialling (01-658263 and 01-658264) of YRIC located on Kaba Aye Pagoda Road, Yankin Township. The proposals worth above K6 billion can contact the Myanmar Investment Commission located on Thitsar Road, Yankin Township via 01-658102 and 01-658103, YRIC stated. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis. To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, the British Virgin Islands and Seychelles are arriving in the region.

Source: The Global New Light of Myanmar

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Border trade down $974 million

The total border trade value exceeded US$8.86 billion as of 27 August in the current financial year (FY), down over $974 million compared with the same period last year, according to the Ministry of Commerce. Between 1 October and 27 August, the total border trade amounted to $8.86 billion, down $974 million compared with the last year’s figure of $9.84 billion.

The country’s export via border checkpoints amounted to $5.83 billion while its import shared $3.03 billion. The trade volume at Must border trade on China-Myanmar border exceeded $4.51 billion, down over $863 million compared with the same period last year. Myanmar has opened 18 border trade camps.

Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods and others to foreign trade partner countries while capital goods, intermediate goods and consumer goods are imported into the country. 

Source: The Global New Light of Myanmar

Over the past seven months, domestic petrol prices have risen by 70 percent to 80 percent depending on the type, and to 1,160 kyats per liter for 95 Octane

Over the past seven months, local petrol prices have risen by 70 to 80 per cent, depending on the type, and to 1,160 kyat per 95 octon per liter, according to local petrol stations. On September 9, domestic prices of octane 95 Ron were 1,160 kyats per liter; Octane 92 Ron 1140 kyats per liter; 1115 kyats for a liter of diesel; Premium diesel costs 1,110 kyats per liter, according to local petrol stations. On February 2, the local price of petrol was 750 kyats per liter and 750 kyats per liter. Octane 92Ron 625 kyats per liter; Premium diesel 670 kyats per liter.

Diesel costs only 660 kyats per liter, according to figures released by the Myanmar Petroleum Importers and Distributors Association (MPTA). For more than seven months, octane 95Ron 410 kyats per liter; Octane 92Ron 515 kyats per liter; Premium diesel 445 kyats per liter; Diesel prices have risen to 450 kyats per liter. Octane 92 Ron about 80%; Premium diesel and diesel rose by about 70 percent per liter, respectively. Myanmar imports around six million tonnes of kerosene a year, according to the Ministry of Commerce.

In the first seven months of the current fiscal year, imports were just $ 1.2 billion from 2.7 million tonnes, down more than one million tonnes from the same period last year, according to an official from the Ministry of Commerce. In the first seven months of the current fiscal year, imports of kerosene fell by 1,002 million tonnes, down $ 663.347 million from a year earlier. During that period, 1.66 million tonnes of diesel was imported, valued at $ 721.173 million. It was down more than 650,000 tonnes, down more than $ 430 million from the same period last year. More than one million tonnes of oil was imported, valued at $ 536.113 million. It was down more than 350,000 tonnes from the same period last year, valued at $ 227.187 million.

Source: Daily Eleven

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Fishery exports plummet to $706 mln as of 27 August

Export earnings from the fisheries sector for nearly eleven months (1 October-27 August) of the current financial year 2020-2021 fell to US$706 million, according to statistics released by the Commerce Ministry. Myanmar’s fishery exports dramatically declined this year, owing to the COVID-19 impacts and the transport difficulty. Myanmar Fisheries Federation (MFF) is striving for the income generated from fisheries export this financial year 2020-2021 to keep up with $715.337 million registered in the previous FY 2019-2020. Consequently, MFF is beefing up the exports of both freshwater and saltwater fish to meet the goal. Although some offshore and inshore vessels started to go fishing on 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 the COVID-19 pandemic. The coronavirus pandemic shut down the wedding, donation events, festivities and restaurants. It also poses transport difficulties. The restrictions caused a slump in fish consumption in the local market. The disruption in container shipment wreak havoc on aquaculture export. To tackle this, the state authorities fulfil the requirements, and the One-Stop Service (OSS) was established. Myanma Port Authority processed to facilitate the transportation. The container shipment has become smooth in June. Furthermore, the Provisional Government of Myanmar will make those stakeholders engaged in the fisheries sector get vaccinated for the COVID-19. This move ensures the trade partners for seafood safety, said Dr Toe Nanda Tin, senior vice-president of MFF.

Keeping the businesses going and growing is a pivotal role in the country’s economy. All the sectors including agriculture and livestock need to commit this. MFF is conducting the business regularly. Those enterprises in the fisheries sector are truly appreciated. The federation is trying to meet the last year’s export earnings in the last month of the current FY (September), she added. Of 175 various aquaculture products, marketable fish products, especially fish, shrimp, eel and crab are primarily exported to foreign markets. In the past ten months, a monthly income from the fisheries sector is worth $65 million. Moreover, the fishery exports through the 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 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’s 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

Stock market up in August

The values of shares traded on the Yangon Stock Exchange (YSX) climbed up in August 2021 compared with those registered in the last two months, with over K300 million worth of 49,191 shares traded on the exchange, the YSX’s monthly report showed. 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 were maintained in the bull market in May with 78,642 shares worth K432.448 million as well. In June, 79,296 shares worth K430.285 million were traded on the exchange.

Then, the volume of shares traded in the equity market plunged to 36,855 shares in July 2021 and the trading value also slipped to K198 million. Under Section 4 of the Trading Business Regulations, the stock trading was closed from 16 to 20 August 2021 as the long public holidays for COVID-19 prevention, control and treatment activities. The market resumed on 23 August 2021 as usual. 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 Holding Public Co., Ltd. (AMATA) were traded in the equity market.

The share prices per unit were closed at K8,900 for FMI, K3,200 for MTSH, K7,800 for MCB, K20,500 for FPB, K2,700 for TMH, K3,100 for EFR and K4,800 for AMATA respectively. 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 development, he added. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has been able to continue operating without stopping trading. Additionally, the stock market also rose in August.

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 at 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. Further more, YSX launched a 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

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Myanmar’s manufacturing output fell for a 12th straight month, with the fall in August being the strongest during the COVID-19 epidemic, according to the survey

Myanmar’s manufacturing output fell for the 12th consecutive month, with the decline in August being the worst during the COVID-19 epidemic, according to the IHS Markit Myanmar Manufacturing PMI (Manufacturing Purchasing Manger’s Index) released on September 1. The rise in Myanmar’s manufacturing PMI from 36.5 in July to 36.5 in August indicates a 12-month slump in manufacturing conditions. 

The rate of decline was significant, with some companies experiencing COVID-19 damage, the most in the survey’s history. Purchasing Manager ‘Index (PMI) New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. Factories closed; Production volumes were further reduced due to weak demand from customers and lack of migrant workers. The decline was significant, with 61 percent of respondents reporting lower production in August than in July, according to the survey.

The supply chain continued to suffer from shortages of raw materials, but the delay in completion was only a tenth in August. According to prices, the shortage of raw materials and the volatility of the dollar exchange rate have led to higher costs for producers in Myanmar. Myanmar’s economy is facing serious consequences due to the epidemic. Vaccination is especially important to control future constraints and demand shocks, said an economist at IHS Markit. The survey is based on original data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven