Three-month trial of direct baht / kyat payment from March 21 in Myawaddy and Tachileik on the Myanmar-Thailand border

In Myawaddy and Tachileik on the Myanmar-Thailand border, the baht / kyat direct payment will be tested for three months from March 21, according to the coordination meeting on the direct use of baht / kyat in the Thai-Myanmar border trade on March 10. Coordination between relevant departments for the successful implementation of the baht / kyat direct payment system in the border areas of Myawaddy and Tachileik; As for the Piolot Preiod, the three-month period from March 21 was discussed.

In addition, the formation of a support group to facilitate cooperation between departments on the ground; Guidling arrangements for clearing the way for direct use of baht / kyat in cross-border trade for traders are scheduled for the third week of March. To be able to use the baht / kyat market exchange rate and to facilitate the cash withdrawal by exchanging the baht from trade to the Myanmar kyat. Issues related to reporting trade information were discussed.

The Central Bank of Myanmar (CBM) announced on March 3 that it can now use the baht and kyat directly on the Thai-Myanmar border. To increase bilateral trade; To speed up the flow of goods; The statement said that the aim was to increase the domestic currency in line with the objectives of ASEAN Financial Integration, in addition to facilitating the two countries’ payment and settlement system. The statement said that the baht accounts of importers and exporters who will carry out cross-border trade will be allowed to open in Designated Banks, which allow them to use the baht and kyat directly.

Designated banks are required to adhere to guidelines on the use of baht and kyat in border trade between the two countries. Myanmar has a total annual trade volume of about $ 35 billion with foreign countries, accounting for about 30 percent of the total, according to figures released by the Ministry of Commerce. On Myanmar-Thailand border, Tachileik, Myawaddy, Kawthaung, Myeik, Htee-khee, Maw-taung doing the indirect trade while the Myawaddy border trade point is the largest source of trade. In the current five-month Ming Budget, Myanmar-Thailand border trade exceeds $ 2 billion, of which more than $ 1 billion (about 50 percent) is handled from the Myawaddy border trade post alone.

Source: Daily Eleven

Manufacturing sector attracts over $138 mln in October-February

The majority of foreign enterprises eye the manufacturing sector for investments, pumping the estimated capital of US$138.6 million into 25 projects in the past five months of the current mini-budget period (October 2021-March 2022), as per the statistics released by the Directorate of Investment and Company Administration (DICA). The manufacturing enterprises and businesses that need a large labour force are prioritized, according to the Myanmar Investment Commission.

At present, labour-intensive enterprises are facing financial hardships amid the COVID-19 negative impacts and political changes. Myanmar’s garment export drastically dropped on the back of a slump in demand by the European Union market in the previous months. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. Nonetheless, the industry is returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report.

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 has drawn foreign direct investment of more than $530.77 million from 34 enterprises during the October-February period. The investments are flowing agriculture, livestock and fisheries, manufacturing, power, construction, transport and communication, hotel and tourism and other services sectors, including expansion of capital by existing enterprises, the DICA’s statistics indicated.

Source: The Global New Light of Myanmar