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Maritime trade drops by $4.77 bln as of 4 June

by TRADING

The value of Myanmar’s maritime trade over the past eight months (1 Oct-4 June) of the current financial year 2020-2021 sank to US$13.275 billion, a drastic drop of over $4.77 billion as against the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $4.45 billion, imports were registered at $7.82 billion. Compared to the same period in the 2019-2020 fiscal year, imports fell by $3.49 billion, while exports reported a decrease of $1.28 billion. Meanwhile, the value of trade through the border this FY was estimated at $7.18 billion, a decrease of $842.5 million as against a year-ago period.

Myanmar witnessed a slump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and the political changes. The neighbouring countries tightened the border security and limited the trading time to contain the spread of the virus. For maritime trade, disruption in the logistic sector, the suspension of some ocean liners and the pandemic-induced container shortage somehow scaled-down the maritime trade. Additionally, the lack of money in circulation due to the closure of private banks decreases economic efficiency, an exporter stressed.

Over the past eight months, the country’s total external trade touched a low of $20.46 billion, which plunged from $26.08 billion recorded in a year-ago period. Myanmar’s sea trade generated $26 billion out of an overall trade value of $36 billion in the last FY2019-2020, the Ministry of Commerce’s statistics indicated. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products. On the other hand, it imports capital goods, consumer goods, and raw industrial materials.  The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade. It includes the Yangon inner terminals and the outer Thilawa Port. 

Source: The Global New Light of Myanmar

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Press release on finding of variant COVID-19 viruses (15-6-2021)

by COVID

While constantly monitoring the outbreak of COVID-19, the Ministry of Health and Sports is especially performing the monitoring of variant COVID-19 viruses. On 3 June 2021, the Defence Services Medical Research Centre of the Ministry of Defence issued the laboratory results for 11 persons with variant COVID-19 — one in Kalay, three in Myeik, four in Mandalay, two in Tamu and one foreign returnee in Yangon.

Variant strains were found as two Alpha and five Delta on variants of concern and four Kappa on variants of interest. These viruses were found in India, the USA, France, Germany, Spain, Ireland and Switzerland. The World Health organization stated Alpha and Delta strains of the variant virus have high speed of further infection and reviewed that it will raise the number of patients to be charged at hospitals and the possibility of increasing the death rate due to severe virus.

Moreover, some vaccines will be weaker than the impact of the virus. As such, it is essential that people strictly abide by the notifications, directives, and work guidelines for prevention and control of COVID-19 issued by the Ministry of Health and Sports to ensure disinfection of the pandemic against themselves, their families and environs.
Ministry of Health and Sport

Source: The Global New Light of Myanmar

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Myanmar border trade value hits $7.19 bln in 2020-2021FY

by TRADING

The total border trade value exceeded US$7.189 billion, down over $842 million in the first nine months of the current financial year compared with the same period last year, according to the Ministry of Commerce.

From 1 October to 4 June of 2020-2021FY, the total border trade amounted to $7.19 billion, a decrease of $842 million compared with the last year’s figure of $8.03 billion. The total border trade value included $4.69 billion in export and $2.49 billion in import. Myanmar has opened 18 border trade camps.

The trade volume at Muse border trade on the China-Myanmar border exceeded $3.66 billion, down over $567 million compared to the same period of the last year. Myanmar’s major export items are agro, animal, marine, forest, industrial finished products, and other products. The country mainly imports capital goods, raw materials, personal goods and CMP products.

Source: The Global New Light of Myanmar

Inflation rate stands at 2.28 per cent in March

by ECONOMY

The annual rate of inflation in Myanmar, based on the Consumer Price Index, fell to 2.28 per cent in March 2021 amidst the depreciation in Kyat value and high fuel price, according to the inflation report released by the Central Statistical Organization, under the Ministry of Planning and Finance. The Kyat weakened in the local forex market in March. Consequently, the imported oil price also surged, causing the price index in the transportation group to rise, the inflation report showed. The consumer price fell in other commodities, tobacco and beverages and clothing groups. At the same time, the CPI spiked in food, non-food, household goods and maintenance, rent, transportation, recreation and culture. The price index of education, health and telecommunication went stable amid the COVID-19, the report stated.

The annual rate of core inflation, which strips out volatile food and energy prices, was six per cent in March 2021. The yearon- year inflation rate stood at 2.64 per cent in March, the inflation data indicated. During the one-year period from April 2020 to March 2021, the inflation rate stood at 6.61 per cent during the coronavirus outbreak in March 2020 owing to the weak demand of consumers and a sharp drop in fuel price. The coronavirus impacts triggered the decline in the consumer price index. It continued slipping to 5.21 per cent in October 2020, 4.6 per cent in November, 3.87 per cent in December, 3.18 per cent in January 2021, 2.61 per cent in February and 2.28 per cent in March, respectively.

In March 2021, Ayeyawady Region recorded the highest inflation rate at 5.99 per cent, followed by Kayin State at 4.37 per cent and Nay Pyi Taw at 4.29 per cent. The rate fluctuated with a maximum rate of 5.57 per cent in the Bago Region and a minimum deflation rate of -0.59 per cent in the Mandalay Region. Earlier, the inflation rate was calculated based on a 2006 survey. The base year was later changed to 2012. The Central Statistical Organization conducted a Household Income and Expenditure Survey in 82 townships in November 2012. The authorities concerned have been making efforts on the basis of policies on finance, currency, trade, and foreign currency control in order to reduce the inflation rate, in keeping with the second five-year National Development plan (2016-2017FY-2020-2021FY).

Source: The Global New Light of Myanmar

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Livestock, fisheries attract five foreign investment projects in seven months

by INVESTMENT

Livestock and Fisheries sector has attracted five foreign investment projects as of April-end in the current financial year 2020-2021 since October, according to the Directorate of Investment and Company Administration (DICA). Those businesses brought in over US$20 million, including the expansion of investments by the existing joint ventures.

They are executing poultry farm, pig farming and sales of pigs, production and farming of broiler and shrimp, as per data of the DICA. Since 1988-1989 FY, about $926.218 million of FDI have flowed into the livestock and fisheries sector. Next, 16 countries have put investment in the livestock and fisheries sector so far.

Among them, Thailand has topped the list of investments, with over $380 million, followed by Singapore with about $130 million. Myanmar’s livestock and fisheries sector are crucial to the livelihoods of many vulnerable households and contribute to improving nutritional outcomes in the country. 

Source: The Global New Light of Myanmar

YCDC planning to build 50 mln euro worth Waste to Energy plant in Htainpin dump site

by ENERGY

Myanmar’s Waste to energy and waste to biogas plant, backed by Poland’s government technology and financial support, will be built in Htainpin dump site in Hlinethaya Township, with the lowest possible environmental impact, according to the Yangon City Development Committee (YCDC). YCDC has projected to build the waste to energy and waste to biogas plant in Htainpin dump site, in cooperation with Poland government. Htainpin dump site has been polluted. This biofuel plant will produce the compressed natural gas CNG and other biofuels which can substitute firewood and reduce water and air pollution, said Dr Aung Myint Maw, director of YCDC (Environmental Conservation and Cleaning Department).

This plant will be constructed with the low-interest loan 50 million euro of Poland government. The Environmental Conservation and Cleaning Department is daily handling more than 2,500 tonnes of garbage, and 1,500 tonnes of garbage is disposed at Htainpin dump site. This biofuel plant will generate CNG from 1,000 tonnes of garbage. Additionally, the Environmental Conservation and Cleaning Department under the YCDC cooperated with the JFE Engineering, which is commissioned by the Tokyo Metropolitan Government, to build the first ever Yangon Waste to Energy Plant. The plant is located on 15 acres of land near Hlawkar Road in Shwepyitha Township, Yangon, and the project cost US$16 million.

The plant burns 60 tonnes of garbage from Mingaladon dump site to generate 760 KW electricity per day. About 400 KW of electricity is used to operate the plant and other 300 KW are fed into Yangon Electricity Supply Corporation (YESC)’s national power grid. Therefore, it can supply about 180 MWh per month. About 2,500 tonnes of solid waste are daily generated in Yangon. At present, Yangon Waste to Energy plant can incinerate only 60 tonnes of waste to generate electricity. As a result of this, the YCDC stepped up to implement the waste to energy and waste to biogas project. Poland government is mulling over it to sign an agreement amid the surging coronavirus cases. They will make concerted efforts to start this project.

Source: The Global New Light of Myanmar

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Price of exported low-quality rice stands at K23,000 per 108-pound bag due to bank withdrawal limit

by TRADING

The price of exported low-quality rice cannot go up and is fixed at only K23,000 per 108-pound bag because of the bank withdrawal restriction, said Secretary U Than Oo of the Bayintnaung Rice Wholesale Centre. Although the rice traders have money in their savings account, they are limited in the withdrawal of cash from their accounts. Thus, they are being faced with limited trading and cannot make cash payment for their trading. As for our exporters, we are trading the rice with foreign currency.

Then, people have exchanged foreign currency for Myanmar Kyat and have to wait to get the cash from the bank. They have cash in our saving accounts. But they cannot withdraw enough amount of cash from the bank. They have tried to connect with the Myanmar Economic Bank and other private banks. Even the connected banks are not able to pay the cash. They have to pay for the rice here, but they cannot withdraw the money from the bank. This is the reason why the price of the rice cannot go up. Besides, there are only a few companies that buy rice to export.

The companies are also buying rice to export it to Bangladesh. Therefore, the price of the exported rice is not very competitive. The price is not competitive in the rice market. Earlier, the purchasers bought the rice through border trade. The retail sellers bought back from the traders as well. The rice exporters have different foreign markets such as the European market, Asian market and Bangladesh market. Only a competitive market makes the rice sell well, and the price has also gone up. About 80,000 rice and broken rice bags were earlier traded daily at the Bayintnaung Rice Wholesale Centre. But the trade volume plummeted to about 30,000 bags at present.

Source: The Global New Light of Myanmar

Dollar exchange rate falls by K10 after CBM sells $3 mln

by ECONOMY

The US dollar exchange rate fell by K10, following the Central Bank of Myanmar (CBM) selling 3 million US dollars, according to the local foreign exchange market. The US dollar exchange rate dropped when the CBM started to sell 3 million dollars at an auction rate for the first time on 7 June. The dollar exchange rate against Myanmar Kyat stood at K1,590 per dollar on 7 June. The rate directly fell to K1,577 per dollar on 11 June.

On 12 May, the dollar exchange rate hit a high of K 1730 per dollar in the local foreign exchange market. Consequently, the CBM has been selling dollars at an auction rate since 12 May, resulting in the exchange rate falling to K 1,580 per dollar this month. CBM is selling the US dollar at an auction rate, intending to keep the exchange rate stable. In the domestic market in 2021, the highest and lowest exchange rate is currently fixed around K1,327-1,345 in January, K1,335-1,465 in February, K1,420-1,550 in March, K1,550-1,610 in April and K1,585-1,730 in May.

In 2020, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. Last year, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527- 1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar

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CMP garment exports drop by 20 per cent in eight months

by MANUFACTURING

Myanmar’s garment exports witnessed a decline of over 20 per cent in the past eight months (Oct-May) of the current financial year 2020-2021 compared with a year-ago period on the back of a slump in demand by the European Union market, stated the Ministry of Commerce. Exports of garments manufactured under the cut-makepack (CMP) system were valued at US$2.2 billion between 1 October and 28 May in the current FY, according to data from the Ministry of Commerce. The figures plunged from $2.7 billion in the corresponding period of the last FY2019-2020. The factories are facing cancellation of order and slump in output, new orders. However, The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller start to resume new orders. Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, posted the Germany Embassy Yangon’s Facebook.

The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries. Nevertheless, all cannot still expect normalcy for now due to the possible disruption in the logistics and supply sector and other serious consequences amid the political instabilities and the COVID-19 impacts, traders stressed. The Myanmar Garment Manufacturers Association (MGMA) reported in the May newsletter that 564 factories are actively running the business, and 177 has no operation. The factories include foreign investment, domestic investment and joint venture businesses. China constitutes the majority of the foreign investment with 302 factories. Myanmar’s manufacturing sector recorded an accelerated downturn in the previous months as political changes led to factory closures. The layoff is extended, and some workers were forced to return to their hometowns. Turning to prices, higher material costs and unfavourable exchange rate movements contributed to a sharp increase in cost burdens, the HIS Markit stated.

More than 500 members and over 700 garment factories in Myanmar are listed on the MGMA, with an employment of about 600,000 workers. Women account for 95 per cent of workers in the garment industry. However, a third of garment industry workers are out of jobs in difficult times. Myanmar’s manufacturing sector is primarily concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis. It contributes to the country’s GDP to a certain extent. Myanmar mainly exports CMP garments to markets in Japan and Europe and the Republic of Korea, China, and the US. The export value of CMP garments was only $850 million in the 2015-2016 FY, but it has tripled over the past two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the 2018 mini-budget period (from April to September). According to the Commerce Ministry, it tremendously grew to $4.6 billion in the 2018-2019FY and $4.8 billion in the 2019-2020FY.

Source: The Global New Light of Myanmar

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Myanmar exports drop 18% in nearly 8 months amid global pandemic

by TRADING

The COVID-19 pandemic affected the country’s exports in the nearly eight months (1 Oct- 28 May) of the current financial year 2020-2021 with a drop of 18 per cent as against last FY. Myanmar’s exports in the past eight months touched a low of US$9.69 billion, reflecting a tremendous drop of over $2.169 billion compared with a year-ago period of the previous FY, according to data from the Ministry of Commerce. During the corresponding period in the previous FY, exports stood at $11.86 billion, according to data released by the ministry. The pandemic deals a severe blow to the manufacturing, livestock, fishery, forest, mineral and other service sectors as it disrupted the supply chain and logistics sector and shut down the events.

Additionally, most people demand only staple food. As a result of this, the export sees the growth in agriculture sector only this year. The drop in natural gas exports, gems and jewellery, and CMP garments contribute to the slump in exports, the ministry stated. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened the border security and limited the trading hours to contain the spread of the virus. Pandemic-induced container shortage pushed up the freight rates in Myanmar, causing delays for exporters.

Of the seven export groups, agricultural exports increased $834.29 million against a year-ago period. In contrast, exports of livestock, forest products, minerals, fishery products and finished industrial goods drastically declined. Between 1 October and 25 May of the current FY, export values have registered at $3.6 billion for agro products, $16.6 million for livestock, $536.57 million for fishery products, $620.5 million for minerals, $85.88 million for forest products, $4.5 billion for manufactured goods, and $282.37 million for other goods. This year, Myanmar’s top export countries are listed China, Thailand, Japan, India, USA, Spain, Germany, UK, ROK and the Netherlands.

Source: The Global New Light of Myanmar