IT is necessary to control Coronavirus Disease 2019 (COVID-19) infection continuously.
So, it is now announced that public requests, orders, notifications and directives except
for easing restrictions released by Union-level Organizations and Union Ministries up
to 31 August 2023 have been extended to 30 September 2023 for prevention, control and
treatment on Coronavirus Disease (COVID-19).
Source: The Global New Light of Myanmar
A total of 53 container ships are scheduled to call in September at Yangon Port, according to the Myanma Port Authority.
In September, seven container vessels each run by Samudera Shipping Line and Sealand Maersk Asia, five by COSCO Shipping Line, four each by IAL Line, MSC Line, RCL Line and SITC Line, three each by Evergreen Line and PIL Line, two each by BAY Line and BLPL Shipping Line, one each by CMA CGM Line, Land & Sea Line and Ti2 Container Line are slated to dock at Yangon Port.
This year, 52 container ships each in January and February, 55 in March, 50 in April, 56 in May, 57 in June, 53 in July and 54 in August arrived at Yangon Port.
Yangon Port handled a total of 620 container vessels this year. Following the draft extension, the international ocean liners can access the inner port for now, according to the Myanma Port Authority’s statement on 22 June 2022.
After the new navigation channel (Kings Bank Channel) accessing the inner Yangon River was found, the draft extension work was accelerated. After that, the port can now handle larger ships. The container vessel (185.99-metre LOA, 35.25-metre BOA, 29,232 GRT and 2,698 TEU) Hongkong-based SITC Shipping Line docked at Asia World Port Terminal for the first time on 22 June.
That vessel is the largest ship that AWPT Port handled.
From May 2021, the arrival of the ships at terminals in Yangon has increased again. To fulfil the seaborne trade requirements, three new container vessels by Maersk Line Myanmar (SeaLand Maersk) started to run in 2021.
Earlier, the larger ships had draft problems preventing their sailing on the Yangon River. The draft was extended up to 10 metres, so the larger ocean liners could enter Thilawa Port.
The coast of Myanmar is 2,228 kilometres (1,260 nautical miles) including the Rakhine coastline (713 kilometres), delta region (437 kilometres) and Taninthayi coastline (1,078 kilometres), stretching from northern Bangladesh’s border to southern Thailand’s border area. There are 10 seaports along the coastline, including Yangon Port, Thilawa Deep Seaport, Kyaukphyu Deep Seaport, Sittway Port, Thandwe Port, Pathein Port, Mawlamyine Port, Dawei Deep Seaport, Myeik Port and Kawthoung Port.
Seaborne trade accounts for 75 per cent of foreign trade. However, Yangon Port including Thilawa terminals is the only international port and the remaining ports in eight cities are designated for the domestic way only.
Source: The Global New Light of Myanmar
The Yangon Region Investment Committee (YRIC) endorsed 45 domestic and foreign enterprises in the past eight months (January-August) and the manufacturing sector topped the investment lineups, U Myo Khaing Oo, director of Yangon Region DICA said.
Those enterprises include manufacturing businesses, garment businesses, hotel businesses and service businesses. The majority of them are CMP businesses.
“YRIC gives the go-ahead to 45 wholly domestic and foreign businesses. The CMP garment businesses played a key player among those endorsed businesses in February-August, creating 18,603 jobs for residents,” U Myo Khaing Oo shared information.
China is the leading investor in Myanmar’s CMP garment factories, followed by Chinese Taipei, Thailand, the Republic of Korea and Japan. The clothes and apparel are sent to Thailand, China, Singapore and European countries.
There are 505 garment factories, 48 footwear manufacturing enterprises, eight wig factories and 177 factories engaged in the production of bags, sportswear, sports shoes and socks on a CMP basis in the Yangon Region, in line with the existing rules and regulations.
Source: The Global New Light of Myanmar
The Central Bank of Myanmar (CBM) governor said on Monday in the recent meeting that it is necessary to make solid efforts to provide the local manufacturing industries including MSMEs with financial support.
The governor emphasized that the CBM urged the banks to follow the rules and regulations to ensure a solid banking system, saying the relevant departments of CBM keep watching the banks whether they comply with the instructions. The CBM also considers the internal control and risk management regarding the risk-taking level of the banks, the macro-economy of the country, external impacts and credit risk.
There should be economic growth and it should provide the public with true information. It should also carry out the work procedures properly and follow the rules and regulations.
Moreover, the governor urged all to make business strategy depending on the market condition, follow the rules for foreign currency, focus on monitoring anti-money laundering and counter-terrorism financing and comply with the rules and regulations of the CBM.
Source: The Global New Light of Myanmar
Thanbayakan Oil Refinery under Myanma Petrochemical Enterprise (MPE) has called for a bid to sell five million gallons of petroleum.
From September to December, Thanbayakan Refinery will sell petrol to filling stations, oil distributing companies, vessel operators and entities engaged in road and bridge construction, transport business, factories and workshops, mining businesses and businesses running with the use of fuel oil. Additionally, anyone can directly purchase oil from the refinery through an official tender procedure.
One million gallons each will be sold per batch on 12 September, 3 and 24 October, 14 November and 5 December under the auction. Tender forms can be submitted to the MPE Office No 44 in Nay Pyi Taw.
The deadline for tender submission is at noon on the designated sale dates.
The tender opening is scheduled for 2 pm on that day. For further details, enquiries can be made at the MPE’s Production Division within office hours.
Source: The Global New Light of Myanmar
Economy
New Union Cabinet was reformed with 32 members in Union Cabinet in which Prime Minister is Senior General Min Aung Hlaing and 4 deputy prime ministers such as Vice Senior General Soe Win, General Tin Aung San (Union Minister of Ministry of Defense), General Mya Tun Oo (Union Minister of Ministry of Transports and Communications), U Win Shein (Union Minister of Ministry of Planning and Finance) and U Than Swe (Union Minister of Ministry of Foreign Affairs).
The U.S. Government has announced sanctions on three Foreign Companies such as Asia Sun Network: Asia Sun Group Co Ltd, Asia Sun Trading Co Ltd, and Cargo Link Petroleum Logistics Co Ltd and two individuals such as Khin Phyu Win and Zaw Min Tun for their roles which are doing procurement with the Government in Jet Fuel Industry on 23rd August 2023.
Banking and Finance
Singapore United Overseas Bank puts a stop to doing banking activities (i.e. restricting all incoming and outgoing payments to and from Myanmar Accounts) or cut off counterparts with Myanmar in Bank Relationship in coming 1st September 2023 which makes a bit burden in the government inaccessible to global financial system. In cutting ties, there is also curb in Visa Card and MasterCard transaction with all Myanmar Individuals and banks. Besides, all nostrum accounts at the Hong Kong branch will have been closed by September 2023.
The Central Bank of Myanmar set the reference rate at MMK 2,100 per USD while one USD is exchanged around MMK 3,700 in the grey market which is a large price difference between the reference of the CBM and the unofficial market rate. Even though August has hit the highest price up to MMK 4,000 in grey market in previous year 2022, it was MMK 3,700 in 2023. In order to control the soaring dollar in the Market, the CBM has injected a total of USD 443.8 million in 2021 and 65 million USD sold in the January 2022. Besides, the CBM revokes money changer licenses of 43 companies in half a year and revoked the licenses of 13 companies and 20 Money Changers on 14th August 2023 for being failed to comply or abide with rules and directives issued by CBM.
Foreign Currency Exchange for Petty cash, foreign currencies of USD 300 to 500, can be exchanged at the Yangon International Airport and 12 Private Banks such as KBZ bank, CB Bank PCL, MAB, AFDB, Yoma Bank, UAB, ADB, MOB, MCB, GTB and Innwa Banks in order to curb currency transactions at grey markets. Besides, the authorities also arrange three AD banks to sell Foreign Currencies every day. People can exchange seven foreign currencies such as US dollar, Euro, Singapore dollar, Baht, Ringgit, Yuan, and Yen.
Central Bank of Myanmar announces to shift to Online Gold Bar Transaction as same as the online trading of the foreign currency market (Forex Market) which has been launched since 22nd June, 2023 in order to ensure gold price stability and gold quality. In order to more stabilize the gold market and access whether registered businesses or not, The CBM instructed the supervisors to inspect whether the price manipulators make price instability at gold shops, and whether the shops have relevant work licenses and other certificates including the legal trading price and payment methods.
In order to be more facilitated in official cash transferring of Myanmar Remittance workers in Thailand to their motherland, “Dee Money Mobile Application” was jointly developed by two Myanmar-Thai Fin-Tech companies which is more reasonable transferring fee and more reliable than any other remittance ways. There will be only charged 49 baht per service fee in transferring baht equivalent to 10 Million Kyats through the application.
The new partnership between KBZ Pay, Myanmar’s pioneering and largest e-wallet and KBank’s digital banking solutions – K PLUS Mobile Banking, a leading digital banking solution provider in Thailand, partnered in offering Joint cross-border digital remittance services for Myanmar Migrant Workers in Thailand. The service has been available since 16th August 2023 and any transaction will be free of charge up to 31st October, 2023.
Trade
On 7th August 2023, sections of the Myawaddy-Kawkareik Asia highway collapsed due to a massive landslide caused by heavy rains. A few vehicles were initially caught under the debris, but it was reported that no one was seriously injured. In the meantime, to the Ministry of Construction has constructed a temporary bridge to connect the highway within a month. Due to the COVID outbreak in 2020-21, Myanmar-Thailand Trade through Myawaddy-Mae Sot border and all trading activities has been cancelled. When it has been resumed, it is prone to temporary closures due to frequent clashes between ethnic militia and insurgents.
Zero-tariff corn exports to Thailand under a preferential tariff scheme ended on 31st August 2023 and Certificate of Origin Form D (An issue for goods eligible for preferential tariffs under CEPT scheme for ASEAN countries) since the initiation of tax exemption on February 2023. As a consequence, Thailand will impose a maximum of 73% tax to protect its domestic production. Although demand will decrease temporarily through Thailand’s growing season, it is anticipated that the market will overcome such setbacks and continue expanding steadily.
The trade agreements between Myanmar and Laos were signed on 8 May 1995, and the bilateral border region management and cooperation agreement was signed on 27 March 1997 in Yangon by the foreign ministers of the two countries. The Opening Ceremony of Kenglat Border Trade Post established between Myanmar and Laos funded by the Lancang- Mekong Cooperation Special Fund 2021 was held on 26th August 2023. Even though the trade post was constructed in 2013 and finished by and temporarily opened in 2015, the opening ceremony was held in 2023. By opening the trade post, there will further increase promotion of bilateral trade between two countries.
Investment
Power Sector has been leading FDI sector among others for many years and likewise from April to July 2023, there are total USD 317 Million from two enterprises from Singapore and China. Among by Foreign investors, Singapore majorly invests in power sector with investing USD 335 Million by 4 enterprises and followed by china with USD 124 Million by 10 enterprises. The others are India, ROK, Samoa and USA.
Pact Myanmar Microfinance shut down
Pact Global Microfinance Fund closed down in late June, after 25 years of operation. PGMF was the leading microfinance institution in Myanmar, forgiving US$156 million in loans to 890,000 borrowers before its exit. According to the Myanmar Microfinance Association, the 3 largest MFIs after PGMF were Vision Fund, Sathapana, and Dawn Microfinance. International MFIs also face difficulties in acquiring credit from abroad. This shift in climate is likely to result in the microfinance sector leaning more and more towards commercial purposes, with altruistic enterprises falling behind.
Manufacturing
The Taninthayi Regional Government has unveiled plans to construct a 20-tonne refined cooking oil mill in a collaborative effort with local businesses. Highlighted by the growing demand for cooking oil, the refinery aims to simultaneously increase domestic production as well as reduce reliance on imports. With the local Resources of having 556,000 acres of oil palm plantations in the Region (especially in Bokpyin and Kawthaung townships), there is potential growth up to a net exporter of cooking oil on top of local consumption. However, there is an environmental issue or impact that mass production leads to further deforestation, especially in coastal region.
The Swedish garment company H&M announced that it would cease operations in Myanmar over concerns of labor abuses. An investigation revealed various cases of workplace abuse, including numerous counts of wage theft and unpaid overtime. There are 26 suppliers and 39 factories of H&M in Myanmar. According to the Myanmar Garment Manufacturers Association, Myanmar exported US$384 worth of textiles in April 2023, and the textiles industry brought in US$ 5 billion for the country in 2022. As a consequence of ceasing operations in Myanmar, there would come as a huge blow to Myanmar’s garment and textile industry, which operates on a cut, make, and pack (CMP) system. With H&M’s exit, Myanmar’s garment factories might face diminished output. There are fears that mass layoffs could occur; the majority of Myanmar’s textile workforce are women. The MGMA is encouraging to deepen the ties between the international garment brands and local factories and foreign-owned factories established in the country. MGMA is willing to work together with international brands and partners to carry out responsible businesses in Myanmar and commit to keep improving the situation of Myanmar’s garment sector
Energy
The Ministry of Electric Power has reopened tenders for investors regarding the Shwe-Li 3 Hydropower project on the Shweli River in Shan state. The tender includes implementation, power generation, maintenance, and eventual retransfer from the private to the public sector. Power projects are crucial for the current administration to address Myanmar’s energy needs. Additionally, the hydropower project is also part of their efforts to expand to renewable energy sources and thus lessen the need for fuel and gas imports. Shwe-Li 3 was previously managed by Électricité de France (EDF), a French energy company, that exited the country in early 2021.
COVID
While COVID-19 cases in Myanmar have been lowered due to the arrival of vaccines and other preventative measures, there is still a need to remain vigilant. The Central Committee on Prevention, Control and Treatment of Coronavirus Disease has extended COVID-19 restrictions until September 30, 2023. The restrictions include social distancing requirements and a ban on public gatherings.