Monthly Business Brief, May 2025

Economy

Myanmar Post-Earthquake Economic Forum held

State Administration Council Chairman Prime Minister Senior General Min Aung Hlaing inaugurated the Myanmar Post-Earthquake Economic Forum with an address on 30 May in Nay Pyi Taw.

Prime Minister Senior General Min Aung Hlaing delivered a speech at the opening of the Forum. Mandalay’s catastrophic earthquake, during which 3,739 lost their lives while 5,104 others were injured, with 68 people still missing. 21 nations have sent 3,109.317 tonnes of relief supplies, relief workers numbering 1,070, and healthcare technicians and doctors numbering 287 to conduct relief activities. A total of 26 nations have sent relief workers. According to the calculations, the losses amount to K3,629 billion.
He pointed out the three strategic pillars which ought to be erected on the basis of our views to remedy the economy in the post-earthquake era. The first pillar is concerned with humanitarian relief and social protection whereas the second and the third pillars are related to infrastructure reconstruction and economic revival and reform anchored in resilience and inclusivity correspondingly.
The disastrous earthquake has had a direct impact upon 600,000 people or so with thousands of people having been forced to move out of their places. The amount of losses in the economic sector caused by the outbreak of the earthquake has accounted for an astronomical figure. The agricultural sector and from MSMEs to factories and work establishments as well as big enterprises, the earthquake has damaged them all.
There can be opportunities among the difficulties. Rehabilitation should be focused on the five main areas: transport, energy, agriculture, telecommunications, and public buildings. With regard to the third pillar reform and global partnership, rehabilitation shall go beyond physical rehabilitation. Rehabilitation should be extended to include reform and reconstruction. In doing so, the country ought to conduct three long-term approaches: preparedness for natural disasters, inclusive of earthquakes; financial accountability; and comprehensive development.
The Prime Minister welcomes the support of the regional and international partners. He highlighted that for factories and workshops to operate, there is a need for essential inputs such as raw materials, fuel and electricity, investment capital, and labour.

The government has allocated K700 billion to provide loans for earthquake-affected areas and will offer these as investment loans. The government has a remaining balance of approximately K226 billion from the State Economic Promotion Fund, intending to disburse it effectively to ensure beneficial utilization.

Forum on Rebuilding Myanmar: Post-Earthquake Economic Recovery kicks off

The Myanmar Narrative Think Tank and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) jointly organized the Forum on Rebuilding Myanmar: Post-Earthquake Economic Recovery under the supervision of the Ministry of Information and the Ministry of Commerce in Nay Pyi Taw on 30-31 May.
Union Minister for Commerce U Tun Ohn said the ministry is actively participating in rescue operations and emergency assistance, support for rehabilitation and economic recovery measures. The basic foodstuffs are also sold at fairer prices for the quake-hit staff and people in Nay Pyi Taw, Sagaing and Mandalay daily. Moreover, the construction materials are also allowed to be imported through the meeting of the Foreign Exchange Supervisory Committee.
The event to sell iron, steel, cement and construction materials was organized in Taboung ground from 12 to 18 May, and it earned K45 billion. The country earned US$14.8 billion in the export sector, $12.47 billion in imports, and $ 27.27 billion in the trading sector in the 2024- 2025 financial year. The ministry also prioritizes the MSMEs and construction services to run as usual in Nay Pyi Taw, Mandalay Region, Sagaing Region and Shan State as quickly as possible.
UMFCCI President U Aye Win said the “UMFCCI Earthquake Relief and Rehabilitation Task Force” was organized on 29 March to be able to provide the needed assistance in quake-stricken areas with the fund of K2,000 million and managed to link with international trader organizations. The statement of the World Bank issued on 18 April 2025 shows that the earthquake in Myanmar caused over $10 billion in damage, and the recovery needs could be doubled or even tripled to cover the damage and loss.
Myanmar Narrative Think Tank Chairman U Ko Ko discussed the seven strategies for the post-earthquake economic recovery of Myanmar- to immediately reconstruct the damaged infrastructure, restore the disrupted social lives, stabilize the financial and economy, draft strategic economic plans, exercise the Build Back Better (BBB) principles, formulate new strategies and approaches that can enhance international cooperation, and support the economics that are least affected by natural disasters such as earthquakes.
Then, the forum continued under three main topics “ Economic Impacts of Mandalay Earthquake”, “Challenges and Opportunities for Economic Recovery” and “Collaborative Solutions for Economic Recovery”.
The relevant officials from different organizations participated in the discussion, and they explained the questions raised by the international observers, political parties’ representatives, MSMEs, local political analysts and attendees.

Yangon apartment and mini-condo sales rebound

Yangon’s property market has reversed from a sales slump, Myanmar Real Estate Services Association (Central). The prices of apartments and mini-condominiums are rising in Yangon’s real estate market. Although the market seems to pull back, there are buyers looking into the purchase.  
The Yangon real estate market experienced an abrupt halt of high-storey building purchases due to the Mandalay Earthquake’s negative consequences. The price slumps even occurred in certain areas. The agents brought sales back on track at the end of May. The pace of increase has slowed. The prices vary depending on the townships. Prices of plots of land are also stable. The prices of apartments range from K100,000 to K200,000 per square metre, while condominium unit prices with elevators are K200,000-K300,000 per square metre, depending on floor and location.
The 40 feet by 60 feet plots of land in Dagon Myothit (East) and Dagon Myothit (North) townships fetched a high price of K30 million to K3,000 million, depending on the locations.
The property rental market is also active in Yangon. The rent is increasing every six months.

Finance

US dollar and gold price stable

 Kyat was almost stable to Kyat 4,430 against US dollar in March due to continuous injection of the Central Bank of Myanmar (CBM). CBM pumped over US$ 90 million with the online trading rate of K 3600/$ to those importing edible oil, fertilizer, pharmaceuticals, and medical devices on online trading platforms and also injected 203 million Thai Bahts in May.  Gold price in the market was increased to K 7.6 million in May from K 7.4 million per tickle in April due to increasing trends of world gold prices.

Trade

Black gram prices steady as India’s market shifts

Myanmar’s black gram price remains stable as foreign demand has been slowing down. Traders from Ayeyawady Region report flat pricing of black gram from the beginning of May. Low demand for India’s mills led to a decline in black gram prices in Myanmar. Black gram from Madhya Pradesh State has been flooding the market, India’s news outlets stated. Myanmar’s black gram prices declined compared to those of the corresponding period last year. Growers are expecting high prices due to high input costs. India imported 31 per cent more black grams this financial year. India’s bean production is likely to drop due to adverse weather conditions. Consequently, the price is expected to rebound.

India has extended the free import policy of black gram (urad) until March 2026, the Directorate General of Foreign Trade, Ministry of Commerce and Industry, Government of India, announced on 10 March. This policy is to meet the growing demand in India, traders stressed. India is the main buyer of Myanmar’s black gram and pigeon peas. Consequently, the prices of black gram and pigeon pea are closely tied to India’s demand and fluctuations in the foreign exchange market.

Myanmar mainly exports black gram, green gram and pigeon pea to India. Of them, black gram and pigeon peas are primarily shipped to India, while green gram is exported to China and Europe. India has growing demand and consumption requirements for black grams and pigeon peas. According to a Memorandum of Understanding between Myanmar and India signed on 18 June 2021, India will import 250,000 tonnes of black grams and 100,000 tonnes of pigeon peas (tur) from Myanmar for five consecutive years from the 2021-2022 financial year to the 2025-2026 financial year. This G-to-G pact will not affect the pulses’ annual quota set by India. Myanmar’s exporters are also entitled to deliver the pulses to India under that yearly quota. The Myanmar Pulses, Beans, Maize and Sesame Seeds Merchants Association stated that black grams, which India primarily purchases, are commonly found only in Myanmar, whereas pigeon peas, green grams and chickpeas are grown in African countries and Australia.

Investment

MIC approves inflow of three FDI businesses worth over $35 mil in May

Three new foreign direct investment valued at US$35.78 million flowed into Myanmar, according to the Myanmar Investment Commission. Including the three new businesses, the MIC meeting held on 16 May approved both domestic and foreign investment businesses such as: the manufacturing of solar panels and related accessories, installation of power cables and related services, the preparation and production of instant foods, garment manufacturing under the Cutting, Making, Packaging (CMP) system, the production of iron and steel-based materials, and other business activities including the aforesaid newly-invested businesses.

According to information provided by DICA, foreign investment is currently permitted in the industrial and service sectors, including the capital expansion in existing investment businesses. At present, among 12 economic sectors, the highest levels of foreign investment are put in the energy sector accounting for 28.34 per cent, the oil and natural gas sector for 24.69 per cent and the manufacturing sector for 14.49 per cent. Singapore, China, and Thailand among 53 countries and regions remain the top three countries at the highest investment levels in Myanmar till the end of April 2025.

FDI withdrawal from Thilawa SEZ

Three Japanese firms, Kamigumi, Sumitomo Corporation, and Toyota Tsusho, have confirmed their withdrawal from the Thilawa Multipurpose International Terminal (TMIT) project in Myanmar. This decision follows concerns about the terminal’s operations, including its partnership with Ever Flow River Group (EFR), a crony company with ties to Myanma Economic Holdings Limited (MEHL), a military conglomerate under international sanctions. The companies have initiated liquidation processes and are preparing to exit the project. The three firms have started the liquidation process and are preparing to exit the project, indicating a formal withdrawal of their investment. 

Manufacturing

Pinpat Steel Mill nears completion in final installation phase

The No 2 Steel Mill (Pinpat) in Taunggyi Township, Shan State, is prepping for operation with final installation works being done. Russian experts from TPE Co Ltd are on site to inspect the Air Separation Unit process and complete equipment installation. Under the Steel Mill (Pinpat) project, pig iron will be produced by utilizing low-grade iron ore from the Pinpat area. Nineteen out of 22 sub-workshops are already operating without load. Efforts are being exerted to test and operate the remaining three sub-workshops so that the production will be simultaneously done with the other 19 workshops. The No 2 Steel Mill (Pinpat) is located on 5,260 acres in the Pinpat area, which is eight miles away from Taunggyi city, Shan State. It is a joint venture between Myanmar Economic Cooperation and Russian state-owned TPE Co, Ltd. The mill’s production target is 200,000 tonnes of raw steel and 720,000 tonnes of iron ore to support downstream production at Myingyan Steel Plant. The geological research pointed out that mineral resources near the mill are 10/7 million tonnes of Hematite ore, including 56.4 per cent iron (Fe) content, and 59.3 million tonnes of Limonite ore with 42.6 per cent Fe content.

Cement factories in Kyaukse restart

Authorities are working to expedite the reopening of cement factories in Kyaukse, Mandalay Region, to meet the growing demand in the domestic market. The cement factories in the Kyaukse area, partially destroyed by the Mandalay earthquake, are under repair and restoration. One factory expects to supply the cement to markets in mid-May, with 100,000 cement bags per day. There are high-producing cement factories (Alpha, Double Rhinos, Sinmin) in Kyaukse Township. Double Rhinos Cement Factory aims to produce 100,000 bags per day starting from 15 May. They are trying to return to work to meet the demand for cement in reconstruction activities. The daily production of cement by domestic factories will help meet market demand.

Energy

LNG power plants in Thilawa, Thakayta set for restart

The Ministry of Electric Power has confirmed that efforts are currently underway to resume operations at the Thilawa (Thanlyin) and Thakayta LNG-fired power plants in Yangon Region. Once these LNG-based power plants are operational again, electricity will be prioritized for distribution to industrial zones in Yangon Region and Mandalay Region. To enable this distribution, the ministry is also working with companies that can import LNG. Although the country has an installed generation capacity of 6,878 megawatts, only around 2,300 megawatts — approximately 50 per cent of the national electricity requirement — are currently being generated daily. As of May 2025, the ministry noted that available electricity is being distributed proportionally: 52 per cent to Yangon Region, 17 per cent to Mandalay Region, and 31 per cent to other regions and states.

Production sharing deal signed for Min Ye Thu Project Mottama Block M-10

The Myanmar Oil and Nat­ural Gas Enterprises and Myanmar-based Thailand na­tional-owned Gulf Petroleum Myanmar Co Ltd organized the signing ceremony of the Pro­duction Sharing Contract for Min Ye Thu Project Mottama offshore Block M-10 in Nay Pyi Taw on 16 May. Currently, the major offshore projects under production are facing a decline, and as the pro­jects is nearing completion, the exploration, drilling and pro­duction operations are being made in promising areas with potential for oil and natural gas.

The contract for Min Ye Thu Project Mottama offshore Block M-10 will bring benefits such as strengthening finan­cial investment in exploration, drilling and extracting, earning foreign income, creating local job opportunities and provid­ing natural gas needs of the country. He also urged the officials to strive for successfully com­mencing the initial extraction of natural gas by the target year of 2028, which is the main objec­tive of the project. Appreciation was also expressed to the rele­vant ministries that cooperated in the contract signing process, the staff of Gulf Petroleum My­anmar Co Ltd and all personnel from the Ministry of Energy. The CEO of Gulf Petrole­um Myanmar Co Ltd made a remark, and the managing di­rector of the Myanmar Oil and Gas Enterprises and CEO of Gulf Petroleum Myanmar Co Ltd signed the contract. The government currently operates four offshore natural gas projects: Yadana, Yedagon, Zawtika and Shwe, and two fur­ther offshore projects, totaling six projects. The Min Ye Thu Project Mottama offshore Block M-10 is the seventh offshore project of the country, and it is the first project being imple­mented in the tenure of the State Administration Council.