Yangon Port: 53 container vessels slated to arrive in Feb

by LOGISTICS

In February, six container vessels each run by Maersk Line, Cosco Shipping Line and Samudera Shipping Line, five each by CMA CGM Line and SITC Shipping Line, four by MSC Line, three each by BLPL Shipping Line, Evergreen Line, ONE Line, RCL Line andTi2 Container Line, two each by IAL Shipping Line and PIL Line and one each by BAY Line and Land and Sea are slated to enter the Yangon Port. In January, 49 vessels docked at the Yangon Port.

Yangon Port handled 629 container vessels in 2023.Thanks to 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 had been found, the draft extension work was accelerated.

After that, the port can now handle larger ships. The container vessel (185.99 m LOA, 35.25 m Beam, 29,232 GRT and 2,698 TEU) Hong Kong-based SITC Shipping Line docked at Asia World Port Terminal for the first time on 22 June, which is the largest ship that AWPT Port handled.

From May 2021, the arrival of ships at terminals in Yangon has increased again. Three new container vessels by Maersk Line Myanmar (SeaLand Maersk) started to run to fulfil the seaborne trade requirements in 2021.

Earlier, the larger ships had draft problems preventing sailing on the Yangon River. With the draft extending up to 10 metres, more giant ocean liners can enter the Thilawa Port.

Source: The Global New Light of Myanmar

147 construction permits granted in YCDC area in H1 Jan

by CONSTRUCTION

A total of 57 building permits were issued within the boundaries of the Yangon City Development Committee in the second week of January.
In addition, regarding Building Complete Certificate (BCC) applications, 147 construction permits were issued within two weeks.
The building completion certificate (BCC) has been approved for 41 buildings, and the list of 25 buildings that have applied for building permits from four to 17 rooms has been sent to the Yangon Electricity Supply Corporation (YESC).
Endorsements have been sent to related departments, such as one letter to the Fire Services Department, 34 letters to the Engineering Department (Water and Sanitation), and 12 to the Urban Land Planning Department to allow building construction.
When applying for building construction permits, it is necessary to include the Standard Operation Procedure (SOP) to be communicated with the Electricity Corporation by the landowners and licensed contractors for obtaining electricity.
This week, licensed contractors will be invited to a meeting to get the BCC and install electricity meters for the buildings. Yangon Electricity Supply Corporation takes the responsibility of installing the electricity meters. 

Source: The Global New Light of Myanmar

Announcement of Central Committeeon Prevention, Control and Treatment ofCoronavirus Disease 2019 (COVID-19)

by COVID

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 January 2024 have been extended
to 29 February 2024 for prevention, control and treatment on Coronavirus Disease (COVID-19).

Source: The Global New Light of Myanmar

Monthly Business Brief, January 2024

by Business Article

Economy

Extension of SAC for another six months

According to National Defence and Security meeting on 31 December 2023, SAC cited the unusual circumstances of the country at the moment which interfered with their ability to carry out elections and restore peace and order and the council decided to extend for further six months.

Four Union Ministers for SAC Chairman Office

The SAC appointed Admiral Moe Aung, formerly commander-in-chief of the Navy as National Security Advisor. Additionally, he was appointed as Union Minster for Ministry (4) at the Office of Chairman of the State Administration Council. U Ko Ko Hlaing, previously Union Minister for International Cooperation, was appointed Union Minister of Ministry (1). U Aung Naing Oo, who held notable positions in investment, commerce and was Union Minister of Ministry (2). U Aung Kyaw Hoe is appointed as Union Minister of Ministry (3).

9,000 Myanmar workers went Korea under EPS in 2023

More than 9,200 Myanmar workers received employment in Korea under its Employment Permit System (EPS) in 2023. Overseas employment agencies in Myanmar can only send workers under this system. Most migrant workers are currently headed for the agricultural and livestock sectors, as well as construction. A few skilled tradesmen, including welders, were also recruited under E-7-3 visas to work in shipbuilding. In recent times, South Korea has been increasing its overseas recruitment to fuel its economic growth.

Banking and finance

CBM injected USD and Thai baht to FE market

In January 2024, the CBM sold US$ 68.4 million to boost liquidity in the FX market and import of essential commodities.  In addition to US$ dollars, the CBM also injected 335 million Thai Baht (US$ 12 million) and 4.2 million RMB into the market. These events represent a trend in government intervention in the FX market, which it has not done since 2021. In December last year, the government injected US$22 million to fuel oil importers to avoid impending shortages.

CBM intensified actions on illegal hundi business and twenty players arrested

As part of its focus on boosting official remittance rates, the CBM has employed stricter measures on illegal Hundi (informal money transfer) services. It has been collaborating with several law enforcement agencies to investigate instances of Hundi operations.

Police have taken action against twenty individuals accused of running Hundi schemes. A further twenty are facing lawsuits in their respective townships.

The CBM has authorized 14 companies to conduct remittance services as of 14 December 2023. The need for official remittance channels has increased since the government has announced that Myanmar expatriates must remit a percentage of their income as well as a 2% income tax.

Kyat depreciation at OTC market

The OTC exchange rate for the dollar, as of January 31, stood at over Ks.3500. Previously, it had maintained a steady position around Ks.3450.

Trade

Export highlights of key sectors

As of 5 January 2024, Myanmar has earned a total of US$ 10.9 billion in exports. The Ministry of commerce has revealed that the largest source of export earnings was from garment exports, at US$ 3.3 billion, followed by natural gas exports at US$2.5 billion. Collectively they represent over half of all export earnings.

The agriculture also contributes a significant number of export earnings. The country exported agricultural products including rice and broken rice, beans and pulses, maize, rubber, and many others. The total valuation of these products is over US$2 billion.

The top ten trading partners this fiscal year, according to the MoC, are Thailand, China, Japan, India, the United States, Germany, Poland, Spain, South Korea, and Italy.

Myanmar auto market saw increase in sales

According to the Myanmar Automobile Manufacturers and Distributors Association, the domestic vehicle market is currently seeing a spike in sales. Specifically, cars within the price range of Ks. 30 million and Ks. 200 million are performing better in sales in the current market. The auto market has been operating quietly with no major fluctuations; however, demand for smaller vehicles have picked up compared to December last year. While there were sales reported for more expensive vehicles, they were infrequent, according to the secretary of the association.

Myanmar imported 6,900 vehicles in 9 months

The Ministry of Transportation and Communications has revealed that in the current fiscal year, 6,906 vehicles were imported into the country, including 1,780 passenger cars and 50 busses. In addition, trucks, construction vehicles, and miscellaneous accessories were also brought in. The total value of the imports was reported to be US$235.02 million, which was more than double that in last fiscal year.

EV cars import and discussion for assembling plants

The latest batch of Yutong branded EV chargers, rated for 80KW, arrived at Yangon Port on January 23rd, according to the Ministry of Information. The Chinese manufactured equipments were imported by Yar Zar Min Industry, with permission from the leading committee responsible for the promotion of EVs in the country.

There has been a regular stream of EV imports in the country after EVs were exempted from commercial tax and special goods tax, beginning from October 2022. A number of local automobile companies have imported EVs from brands such as BYD, Toyota, MG, and Karry. A total of 1,888 EV Passenger cars and light trucks have been imported and registered at RTAD.

Manufacturing

Investment for EVs assembling plant

It is learnt that overseas EV companies are discussing with officials of Myotha Industrial Park City (MIPC) near Mandalay to find out opportunity to invest in EVs assembling plants in MIPC.

Loans for MSMEs at low interest rates

Micro, Small, and Medium enterprises will soon be able to apply for loans at competitive interest rates. Depending on the size of the company, they will be able to borrow starting from Ks. 10 million up to Ks.100 million. Interest rates are set between 3%-5% per year depending on whether the loan is used for fixed capital or working capital; the loan period is up to 18 months.

MSMEs in the following groups will be prioritized: manufacturer of high value products; exporters; producers utilizing local raw materials; producers of  import substitution products; job creators; waste and hazard management; and healthcare companies.

Energy

Solar panels sales surged over generators

Electronic companies are reporting surging sales of solar panels and other photovoltaic equipment.. Solar equipment sales have edged out the traditional generator. Store owners have noticed that most purchases are ordered from other region and states than the capital Yangon.

Fuel prices hike at end of January

According to reference prices revealed by the Fuel Oil Supervisory Committee on January 26, fuel prices have increased across the board. Octane-92 increased by Ks. 100 to Ks. 2705 per liter; octane-95 at Ks. 2845 per liter; diesel at Ks. 2450 per liter; and premium diesel at Ks. 2515 per liter. Despite rising costs, there were no reported instances of long queues at fuel stations as has happened in the past during fuel shortages.

Transportation

Air KBZ renamed to Mingalar Airlines

Air KBZ Airlines, a subsidiary of KBZ group, has rebranded to Mingalar Aviation Services on January 6th, according to its official Facebook page. The airline with continue to operate its 13 domestic flights under the name Mingalar Airlines. Mingalar Aviation is one of the few privately operated airlines in Myanmar, alongside Myanmar Airways International.

Air KBZ Airlines was established on June 2010, and began operating domestic flights a year later with a fleet of 12 commercial aircraft. In 2015, it began expanding its range of destinations both domestically and internationally, and began code-sharing international flights with MAI.

Direct shipment of goods from Inland Logistic Port to Thilawa Port

Goods are now shipping directly from the Mandalay region to Thilawa port by train. RGL Dry Port, located in the town of Myitnge, officially commenced operation on January 1st , 2024. The connection will help facilitate the transfer of Mandalay-produced goods such as rice, pulses and beans, and gems and minerals, at very affordable rates, as it will be utilizing the already established national rail network. Moreover, it is located near key manufacturing zones. Its first successful shipment was 20 containers (490 tons) of maize headed for export to the Philippines.

Tourism

Over one million international tourists and 8.8 million domestic tourists in 2023

The Ministry of Hotels and Tourism is expected a growth in tourist numbers after a favorable increase in 2023. In 2023, there were 1.24 million international tourists and 8.85 million domestic travelers ; a massive increase over the previous three years. Most international arrivals are from Thailand and China.

The Ministry continued to highlight the importance of public-private cooperation to develop the tourism sector. The government has sought to promote tourism overseas and has begun trialing Visa-on-Arrival for Indian and Chinese tourists. There are talks to adopt the Russian payment system Mir to better accommodate Russian visitors.

COVID

In order to continuously control the infection of COVID-19, the rules and restrictions have been extended until the end of February 2024.

CBM discusses rupee/kyat tradesettlement mechanism

by ECONOMY

The Central Bank of Myanmar organized a briefing on the rupee and kyat trade settlement mechanism to start rupee/kyat direct payment using the Special Rupee Vostro Account (SRVA) for bilateral trade between Myanmar and India in Nay Pyi Taw yesterday.
During the meeting, Governor Daw Than Than Swe of the Central Bank of Myanmar talked about the activities of CBM aiming at boosting the bilateral trade with neighbouring countries, facilitating the bilateral transaction and trading, reducing the use of US dollars and exchange rate risk and promoting the use of local currency. She added that the rupee/kyat payment working committee was organized to implement the rupee/kyat trade mechanism.
The CBM held meetings with the Indian Embassy to Myanmar, the Reserve Bank of India, the Department of Financial Services and the Ministry of Finance and approved Joint Concept Note Paper and Standard Operating Procedures (SOPs).
Moreover, the guideline for payment procedures under the Special Rupee Vostro Account (SRVA) has already been released, and the payment can be made starting in February. The briefing will also be organized for the merchants by cooperating with UMFCCI and the Indian Chamber of Commerce. She also mentioned the benefits of implementing rupee and kyat direct payment in various sectors.
Then, the designated banks for rupee and kyat payments, such as UAB, CB bank PCL, and Punjab National Bank, explained the rupee/kyat trade settlement mechanism. Attendees participated in the discussion, and the governor concluded the meeting.

Source: The Global New Light of Myanmar

Over 230 licences for gemtrade set to expire in March 2024

by TRADING

MORE than 230 licences for gem trade are due to expire in March 2024, according to a notification from the Myanma Gems Enterprise.

Those entities holding gems and jewellery trading licences, manufacturing licences for finished gems and carvings and rough gemstone and finished products trading licences issued by the Myanma Gems Enterprise under the approval of the Ministry of Natural Resources and Environmental Conservation are required to proceed to the renewal process three months before the expiry date. They must renew them at least one month before the expiry.

Additionally, they can notify the Myanma Gems Enterprise of winding down a business with one month’s notice before ceasing the operation.

Licence renewal applications can be processed at the Myanma Gems Enterprise (Nay Pyi Taw), Gems Museum in Yangon and Mandalay Office, mining departments in Mogok, Lonkhin/Phakant, Mongshu and Myitkyina areas, in line with the rules and regulations.

Those businesspeople holding expired licences in 2020 and 2021 were urged to reinstate them with the relevant departments by 31 December 2023. Failure to renew the gem trading licence is bound to face revocation, as notified by the Myanma Gems Enterprise on 22 September 2023.

Soure: The Global New Light of Myanmar

Kyat depreciation exceeds K3,500 at over-thecounter market

by ECONOMY

KYAT weakened against the surging greenback at over K3,500 on 25 January at the over-the-counter market after easing around K3,450 for the past three weeks.

Meanwhile, the reference exchange rate of the Central Bank of Myanmar is K2,100.

On 5 December 2023, the Central Bank of Myanmar allowed authorized dealers (private banks) to operate forex exchanges freely as per the market rate determined by supply and demand market forces. Additionally, the CBM notified that outward remittance must comply with the rules and regulations of the Foreign Exchange Management Committee.

The US dollar hit a high of K4,000 in the grey market on 19 August 2023.

Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences are allowed to deal in foreign currency and traveller’s cheques. Those holding foreign currencies without valid licences and permits will face legal actions under the law, according to the CBM’s notification released on 21 August 2023.

Notification 7/2014 dated 30 September 2014 issued by the Central Bank of Myanmar affirmingly stated that under Paragraph 15 of the Foreign Exchange Management Law, domestic residents can keep US$10,000 in maximum or equivalent amount of foreign currencies for six months if those foreign currencies that have been unused for over six months have to be exchanged in local currency at the market price through the authorized dealers or deposited into bank accounts.

Those illegally holding foreign currencies are to face legal actions under the Foreign Exchange Management Law, the CBM warned again.

Source: The Global New Light of Myanmar

K 30 to 200 million cars sell better now in Myanmar auto market

by ENERGY

Vehicles priced between K 30 million and 200 million are selling better in the current market, according to U Kyawswa Tun Myint, secretary of the Myanmar Automobile Manufacturers And Distributors Association.

With sales stagnating in early December, the market started to pick up from the second week of December and it has now increased, he explained.

“The current automobile market is quiet with regular sales and purchases – no rise or fall in prices. But, the price of some small cars with higher demand increased by a few percentage. Sales have increased when compared to the early December last year,” he said.

Vehicles priced from K 30-35 million to K 100-150-200 million are selling better and sales of more expensive cars are present, but not frequent, said U Kyawswa Tun Myint.

“It has increased by a certain percentage. Sales didn’t stop in December. There were some sales. Now, the number of sales is increasing more than before. The price of some small cars rose by a few percentage. Not many. If compared to early December, there were more frequent sales,” he said.

Source: The Global New Light of Myanmar

Myanmar’s current FY export highlights: Key sectors, earnings, and top partners

by TRADING

Statistics released by the Trade Policy Division of the Department of Trade under the Ministry of Commerce revealed that the garment and natural gas sectors generated the highest export earnings between 1 April 2023 and 5 January 2024 of the 2023-24 financial year.
As of 5 January 2024, Myanmar has earned US$10.918 billion from exports during this financial year. Breaking down the details, garment exports stand as the highest earner with $3.308 billion, followed by natural gas exports with $2.543 billion.
Daw Cho Thet Mu, Deputy Director of the Trade Policy Division of the Department of Trade, stated, “Garments and natural gas exports are the primary contributors to Myanmar’s export sectors. In the first nine months of this financial year, $5.851 billion was generated from garments and natural gas exports, representing over half of the total earnings from all exports. Other significant contributors include black gram exports at $540 million, rice and broken rice exports at $490 million, corn exports at $380 million, fish exports at $260 million, green gram at $210 million, raw rubber exports at $150 million, pigeon pea at $110 million, and tissue-cultured banana exports at $90 million”.
The top ten export items that have generated the most income within the first nine months include garments (finished products), natural gas, black gram, rice and broken rice, corn, fish, green gram, raw rubber, pigeon pea, and tissue-cultured banana.
The report further indicates that, during this financial year’s mentioned period, Myanmar’s top ten countries primarily exported were Thailand, China, Japan, India, the United States, Germany, Poland, Spain, South Korea, and Italy. 

Source: The Global New Light of Myanmar

Myanmar National Airlines welcome cargo plane with ceremony

by LOGISTICS

The ceremony to welcome the Boeing 737-800 Freighter aircraft of Myanmar National Airlines was held at Yangon International Airport yesterday afternoon.
The cargo plane, (9M-WCA), Flight No 3G005, departed from Kuala Lumpur, Malaysia, and arrived at Yangon International Airport at 3:25 pm, where officials from Myanmar National Airlines conducted a welcome ceremony.
The aircraft will be used for cargo transport flights of Myanmar National Airlines and will be able to carry about 22 tonnes of cargo, as well as dangerous goods that cannot be transported on regular flights.
Boeing 737-800 Freighter aircraft No 9M-WCA is planned to expand cargo transport flights from Yangon to Southeast Asian countries.

Source: The Global New Light of Myanmar