Economy

New Phase in Myanmar: Transitional Commission and Union Government Formed

The formation of new governing bodies to oversee the country’s transitional period toward future elections and a new union government were declared. The changes were outlined in a series of orders issued by the National Defence and Security Council (NDSC) on 31 July.

The NDSC revoked the emergency order that had transferred State power to the Commander-in-Chief since February 2021. This revocation ended the State Administrative Council (SAC)’s authority, concluding its role as the governing body during the emergency period. However, state of emergency is still existent in 63 townships in 9 states and regions out of 15.

The 10-member State Security and Peace Commission is established Chaired by the Pro Tem President and Commander-in-Chief of Defence Services, Senior General Min Aung Hlaing. The Commission is empowered to exercise legislative, executive, and judicial authority during the transitional phase. The body is tasked with ensuring security, peace, and political stability ahead of future multiparty elections.

The NDSC formed a new Union Government under Order 3/2025. The cabinet includes 31 members, led by Prime Minister Nyo Saw (former General) and Union Ministers overseeing all major ministries. During the transition, this administration is responsible for all administrative duties. For gender participation, Dr Wah Wah Maung becomes Union Minister for Investment Foreign Economic Relations and Dr Chaw Chaw Sein as Union Minister for Education.

The establishment of a Security and Peace Commission and reinstatement of structured Government, and are all indicative of an important turning point in Myanmar’s political landscape for preparation of the election.

Myanmar Holds Post-Earthquake Forum to Boost Resilient Infrastructure

The Post-Earthquake Technical Forum, which took place from July 28 to 29 at the Mingala Thiri Hotel in Nay Pyi Taw, brought together government officials, engineers, and international experts to examine rehabilitation efforts and improve disaster preparedness in the aftermath of the devastating Mandalay earthquake.

Focus on Safety and Resilience

On the first day of the forum, Senior General Min Aung Hlaing, Chairman of the State Administration Council and Prime Minister, emphasized the need for Myanmar to adopt advanced construction technologies and standards used in earthquake-prone countries like Japan, China, and Indonesia.

The government has initially provided K500 billion as funding to support the reconstruction of homes and buildings of the people damaged by the disaster and additionally a further K2 trillion is being provided to continue supporting the reconstruction of more than 50,000 damaged homes and public structures, including schools, hospitals, and religious buildings.

The Senior General also highlighted the importance of coordinated efforts across the construction sector including developers, engineers, material suppliers, and inspectors to ensure buildings meet earthquake-resistant standards.

A key milestone of the forum is the upcoming Myanmar National Building Code 2025 (MNBC-2025), which will incorporate updated seismic zoning maps, detailed failure mode analyses, and building-specific seismic load calculations, all based on the latest geoscientific data gathered from the recent Mandalay earthquake.

Expert Contributions and Technical Discussions

On the second day, Deputy Prime Minister and Defence Minister General Maung Maung Aye, who also chairs the Buildings Restoration Committee, presented certificates of appreciation to international experts and members of three Myanmar construction associations for their contributions.

Experts presented technical papers on a wide range of topics, including methods for retrofitting religious and historical buildings to preserve cultural heritage while enhancing structural safety. Lessons from Nepal’s 2015 Gorkha earthquake were shared, highlighting community-based retrofitting approaches and the importance of local engagement in reconstruction. Presentations on seismic risk assessment in Myanmar emphasized the need for updated geological data and hazard mapping to guide future urban planning. The use of isolation technology such as base isolators and damping systems was discussed as an effective method to reduce seismic impact on buildings. In addition, experts examined key challenges in MNBC-2025 compliance, outlined modern repair techniques for damaged structures, and stressed the importance of ensuring the quality and standards of construction materials used in earthquake-prone areas.

Additional sessions discussed the role of local supervisory committees, the importance of strict compliance with building regulations, and challenges in enforcing safety standards.

The forum concluded with remarks by Union Minister U Myo Thant, Patron of the Myanmar Engineering Council, who called for continued collaboration to strengthen national resilience to future seismic events.

The website www.myanmarearthquake.gov.mm has also been launched to provide updates on earthquakes in Myanmar, including the Mandalay quake on 28 March 2025. Users can access news, report damages, share experiences, and donate directly to affected areas via KBZ Pay, CBPay, AYA Pay, OK $, Wave Pay, or internationally via Visa and Mastercard. The platform aims to coordinate aid and support efficiently.

 Finance

Kyat Weakens in July Despite CBM Support; Gold and Fuel Prices Rise

The kyat continued to depreciate in July 2025 despite the Central Bank of Myanmar. CBM injected over US$ 153 million with the online trading rate of K 3620/$ to those importing edible oil, fertilizer, pharmaceuticals, and medical devices on online trading platforms and also injected 7.74 million yuan and 12.3 million Thai Bahts in July. As of July 31, the kyat traded at Ks 4,390 per US dollar for buying and Ks 4,480 for selling, marking a slight depreciation from mid-July, when the rate stood at Ks 4,390/4,470.

Gold prices remained high amid safe-haven demand. The July 31 rates were Ks 7.76 million (selling) and Ks 7.68 million (buying) per tickle.

Fuel prices also rose by the end of July. As of July 31, diesel retailed at Ks 2,710 per liter, premium diesel at Ks 3,355, Octane 92 at Ks 2,935, and Octane 95 at Ks 2,990. These increases, tied to both exchange rate depreciation and rising international oil prices, are likely to add further inflationary pressure to the domestic economy.

CBM Revokes Export Licenses for Non-Compliance with Forex Law

197 businesses and their board members have been placed on a blacklist by the Central Bank of Myanmar (CBM) for failing to repatriate export revenues between 2016 and 2020, in violation of the Foreign Exchange Management Law as well as related directives. Exporters are required to deposit earnings into domestic bank accounts within 30 days for Asian countries and 60 days for others. Despite coordinated efforts by private banks and governments to ensure compliance, many businesses failed to settle their unpaid debts. As a result, their export registrations were revoked. Non-compliance may lead to imprisonment, fines, or both under Section 42 of the Foreign Exchange Management Law. 

Trade

U.S. – Myanmar Trade Tensions Escalate with Tariff Threats and Sanctions

Myanmar-U.S. trade relations have worsened amid rising tariffs, sanctions, and non-tariff barriers. While past tariffs ranged from 10–20% on Myanmar exports and 0–10% on U.S. exports, President Donald Trump announced on 7 July 2025 a proposed 40% tariff on all imports from Myanmar as part of a broader crackdown affecting 14 countries. The new duties, initially set for 9 July, have been delayed to 1 August, pending diplomatic developments.

State Administration Council Chairman and Prime Minister Senior General Min Aung Hlaing, responded on 9 July, calling for a reduction in the proposed tariffs and offering to send a negotiation team to the U.S. The proposed raise might hurt Myanmar’s weak export economy and is already driving foreign investment away from the country and towards Asian markets. Meanwhile, existing U.S. sanctions on state-owned banks and the oil and gas sector have limited Myanmar’s access to dollar-based transactions. These restrictions, along with export controls and business advisories, continue to deter U.S. firms from engaging with Myanmar. Though some technology and humanitarian trade persists, overall trade remains under heavy strain, with Myanmar increasingly relying on regional partners.

Myanmar Eyes Russian Market for Mango and Coffee Exports

The Myanmar Trade Promotion Organization (MyanTrade) held meetings on 28 July to boost exports of mango pulp and high-grade coffee to Russia. Russia, which mainly sources mango pulp from India, is seeking 10,000 tonnes, opening a potential market for Myanmar. MyanTrade pledged to connect Russian buyers with local mango and coffee producers.

Officials discussed production challenges, especially in mango farming, where yields dropped by 50% due to high input costs and poor quality. Meanwhile, efforts are underway to expand high-grade coffee exports. Collaboration between MyanTrade, agricultural ministries, and Myanmar’s economic counsellor in Russia will support market entry. Both initiatives aim to diversify export destinations and enhance trade ties with Russia.

Investment

MIC Eases Rules for Motorcycle Assembly Imports (27.7.25)

The Myanmar Investment Commission announced on 25 July that motorcycle and three-wheeled vehicle assembly businesses can declare semi-knocked down (SKD) kits on trade invoices to streamline imports and avoid full duties on completely built units (CBUs). This move aims to encourage assembly-based production.

The Ministry of Planning and Finance’s Notification 39/2025 sets specific tax rates for CBU, SKD, and completely knocked down (CKD) systems, effective from 1 June 2025 to 31 May 2026. In parallel, the Ministry of Industry is working to define major raw material groups for clearer tariff policies. This aligns with earlier policies allowing annual tax payments on selected imported items.

Agriculture

Myanmar to Import 1.6 Million Tonnes of Fertilizer in FY2025-2026

Myanmar aims to import 1.6 million tonnes of fertilizer and 32,000 tonnes of pesticide in the 2025–2026 financial year, according to the Urea Fertilizer Purchasing and Distribution Steering Committee. In the first quarter of the fiscal year (April–June), Customs data shows over 438,700 tonnes of fertilizer and 9,840 tonnes of pesticide were already imported, with approvals granted by the Ministry of Commerce.