Union Minister U Win Khaing urges MOGSS to prepare for changes in oil, natural gas industry

by ENERGY

Union Minister for Electricity and Energy U Win Khaing said that unexpected changes will occur in the oil and gas industry in future because of the COVID-19 pandemic, calling on the Myanmar Oil and Gas Services Society (MOGSS) to prepare for the changes. The Union Minister made the remark in a video message delivered to the opening ceremony of the annual meeting held by the MOGSS via online yesterday morning. He urged the MOGSS to make suitable arrangements to adapt to the ‘new normal’ situation. It is said that the oil and gas industry continues playing an important role in the future and the market will continue growing. He continued that in 2021-2022, crude oil prices may gradually rise again.

It is pointed out that the global supplies and demands as well as changes in oil prices may have impacts on inviting international tenders for offshore block projects of Myanmar. Speaking on the effects of the pandemic, the Union Minister said that natural gas prices dropped by 5 -10 per cent and product prices in the downstream refining sector dropped by up to 20 per cent. It is also said that natural gas and LNG are playing a key role in changing energy consumption patterns due to climate changes and environmental impacts as well as increasing uses of renewable energy in ‘New Energy Mix’. Myanmar’s energy mix is about 40 per cent of hydropower; about 14 per cent of solar energy, about 34 per cent of domestic natural gas and 11 per cent of LNG, so renewable energy consumption in Myanmar is about 54 per cent and clean energy consumption is about 45 per cent, according to the Union Minister.

Moreover, it is said that major investment projects such as A-6, A-3, M-9 and M-3 offshore projects have been providing more job opportunities in the oil industry. He continued that in the future, new onshore and offshore pipeline-construction projects will be implemented, and consequently business opportunities will be open more. The Union Minister also urged all the stakeholders to observe the future trends of the power sector in line with the Future Energy Transition pathway. He also called on the MOGSS to cooperate with banks to obtain necessary funds, to provide technical training to staff members and to organize online conferences and exhibitions in order to develop the industry. The virtual meeting was participated by officials from the ministry, MOGSS officials, and representatives from companies from the oil and natural gas industry.

Source: The Global New Light of Myanmar

Domestic fuel oil price rises to nine-month high on vaccine optimism

by ENERGY

The domestic fuel oil price has now risen to 30-50 per cent per litre compared to April 2019, as the vaccine optimism grew, and some businesses resume their operations, the market data indicated. At present, the domestic oil market has recovered a bit as the COVID-19 heightened measures have eased a bit. The fuel oil was pegged at around K655 per litre for Octane 92, K765 for Octane 95, K695 for diesel and K705 for premium diesel on 24 January 2021 in the domestic retail market, according to the local fuel oil market.

Domestic oil price is positively related to the global market. Oil price inched higher in the worldwide market in August. In the global markets, oil prices stood at around $39.9 per barrel for WTI crude oil on 3 August 2020. In late January 2021, the price slightly gained to $52.27 per barrel. The domestic oil prices have declined from 10 January 2020 owing to a fall in global oil prices. On 8 January 2020, oil prices were pegged at around K905 per litre for Octane 92, K995 for Octane 95, and K985 for diesel and premium diesel. Following the global market crashing, the domestic oil price plunged to more than 50 per cent in April against January’s prices.

In late April 2020, the oil prices touched a low of K290-330 per litre for Octane 92, K430-455 for Octane 95, K435-465 for diesel and K445-475 for premium diesel, according to the domestic oil market. Ninety per cent of fuel oil in Myanmar is imported while the remaining 10 per cent is produced locally. In the Q1 of the current financial year 2020-2021, about $600 million worth petroleum products were imported. The figure plunged by half compared to a year-ago period, the Ministry of Commerce stated. Usually, Myanmar imports fuel oil primarily from Singapore, with monthly volumes touching 200,000 tonnes for gasoline and 400,000 tonnes for diesel. There are about 2,000 fuel stations and 50 oil importer companies in Myanmar. 

Source: The Global New Light of Myanmar

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Global strong demand sparks agricultural exports

by TRADING

The agricultural exports have touched a high of US$1.46 billion as of 15 January 2020 in the current financial year since 1 October 2020 on the back of strong global demand for agricultural products amid the coronavirus impacts. The figures reflect a significant rise of $408.526 million this FY. The agro exports soared from $1.05 billion in the corresponding period of the 2019-2020FY, according to the trade figures released by the Ministry of Commerce. Myanmar’s agricultural exports rose regardless of the coronavirus’s impact on foreign demand for other export groups. In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports.

The agricultural sector’s top export items are rice and broken rice, pulses and beans, and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro products are also shipped to other countries. Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. Sometimes, the export market remains uncertain due to unsteady global demand. The country requires specific export plans for each agro product. They are currently exported to external markets based upon supply and demand. Contract farming systems, regional and state agriculture departments, exporters, traders, and some grower groups are required to meet production targets, said an official from the Agriculture Department.

The Commerce Ministry is working to help farmers deal with high input costs, procurement of pedigree seeds, high cultivation costs, and variable weather conditions. Myanmar Agricultural Development Bank (MADB) under the Ministry of Planning, Finance and Industry has notified the farmers of agricultural loans for the current financial year. In a bid to mitigate the impacts stricken by the COVID-19, the bank also provided an additional loan of K50,000 per acre under the COVID-19 Special Relief Loan Scheme between June and September 2020. Moreover, it cut the loan interest rate from eight to five per cent during the COVID-19 crisis. The MADB yearly grants agricultural loans to the small-scale farmers. The paddy farmers can take out loans of K150,000 per acre, while the growers of other crops including sugarcane, can get K100,000 per acre. They have to put the original Farmland Permit Form (7) up for collateral to secure the loan under the personal guarantee system. 

Source: The Global New Light of Myanmar

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Total border trade value down by $848 mln

by TRADING

The total trade value at 18 border trade camps plummeted by US$848 million in this financial year, according to the Ministry of Commerce.
From 1 October 2020 to 15 January, the total trade value amounted to $2.7 billion, a decrease of $848 million compared with that of the same period last year. The total border trade value as of 15 January this FY includes $1.78 billion in export and $911 million in import.

Compared with that of last FY, the export earnings dropped by $518 million while the import value fell by $330 million. This time last year saw the border trade valued at $3.55 billion. Myanmar’s major export items are farm, animal, marine, forest, mining, CMP and other products. Myanmar mainly imports capital goods, industrial raw materials, personal goods and CMP raw materials. Myanmar has opened 18 border trade camps and conducts border trade with China through Muse, Lwejel, Kampaiti, Chinshwehaw and Kengtung borders.

The country carries out border trade with Thailand through Tachilek, Myawady, Kawthaung, Myeik, Hteekhee, Mawtaung and Maese borders. The cross-border trade camps between Myanmar and Bangladesh are Sittway and Maungtaw. In contrast, the country trades directly with India via Tamu and Reed borders. Among all the border crossings, the Muse border sees an enormous volume and value of border trade with an estimated value of more than $1.31 billion this FY followed by Hteekhee with $368 million and Myawady with $304 million. 

Source: The Global New Light of Myanmar

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Siam Commercial Bank opens in Myanmar

by SERVICES

Siam Commercial Bank, the only Thai bank allowed to operate a wholly-owned subsidiary bank in Myanmar, is opening “Siam Commercial Bank Myanmar” in Yangon, according to a press release. SCB Myanmar will leverage its digital banking expertise and strength to elevate financial products, services, and payment systems in Myanmar to fulfil the business requirements of the ASEAN group. The move will open up new capabilities and allow SCB Myanmar to meet the needs of every customer group in Myanmar to the fullest extent possible, whether large corporations, SMEs, or retail customers. SCB Myanmar will also capitalize on SCB’s branch network by bridging regional trade and investment relations among the CLMV+2 countries.


Siam Commercial Bank President SarutRuttanaporn said that the Bank will support the development of financial infrastructure and payment systems even further by offering solutions critical for Myanmar’s businesses and digital finance, in line with the increasing popularity of Myanmar’s digital banking trend. The Bank is now studying the market so as to create satisfactory financial experiences for the people of Myanmar. Their tasks will start from the development of digital payment systems, both a corporate portal for businesses and mobile banking for retail customers. Services expected to be available in 2022, which will help support business payments and reduce cash usage and management costs in the country.

SCB was granted a banking licence to operate Siam Commercial Bank Myanmar by the Central Bank of Myanmar. This development is an important jigsaw piece in SCB, accomplishing the strategic expansion of its overseas network in the CLMV+2 countries over the past several years. With its increasing importance as a regionally strategic country, Myanmar has become one of the top destinations attracting investors from around the world. The country’s strategic location links Asia’s two regional powers, China and India. According to a World Bank forecast, Myanmar’s GDP will resume its former 6 per cent level in 2021, up from the 1.5 per cent level predicted for 2020 due to impacts of the COVID-19 pandemic. 

Source: The Global New Light of Myanmar

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1.5 mln doses of India’s Covishield vaccine arrive in Myanmar

by COVID

A total of 1.5 million doses of the Covishield vaccine manufactured by Serum Institute of India (SII) arrived at the Yangon International Airport yesterday. On the government-to-government basis, the first batch of COVID-19 vaccines from India was transported to Myanmar by Air India.
Indian Ambassador Mr Shri Saurabh Kumar handed over the 1.5 million doses of the Covishield vaccines to Director-General from Medical Research Department Professor Dr Zaw Than Tun at the Yangon International Airport.

Regarding the assistance to Myanmar, the Indian Ambassador said that India is providing the home-made vaccines to the partner countries, including Myanmar. He also quoted the Prime Minister of India as saying that India’s vaccine would be useful for fighting the pandemic. Deputy Director-General of Yangon Region’s Public Health Department Dr Tun Myint said that it is still necessary to be careful of COVID-19 after being vaccinated the first time. Prevention guidelines are still required to be abided by until the second dose of vaccine is received to avoid the waste of valuable medicines.

The vaccines need to be stored in the room temperatures of 2 to 8°C. As some of the previous vaccines were stored in the cool chain room, it is not a problem for the COVID-19 vaccine. The vaccines will be transported to the central cool chain room and distributed to regions and states. The government of India donated the first batch of the COVID-19 vaccines to Myanmar in enhancing Myanmar-India relations and helping Myanmar in the fights against the pandemic. Second batch of the vaccines will soon arrive in Myanmar.

Source: The Global New Light of Myanmar

Employees clean and wash farmed fish at Hlaing Htate Khaung Cold Store in Yangon, Myanmar on August 29, 2018. Photograph: Taylor Weidman/Bloomberg

China allows Myanmar fishery products only with COVID-free certificates

by TRADING

Department of Animal and Plant Quarantine of the General Administration of Customs of China-GACC informed the Embassy of the Republic of the Union of Myanmar in Beijing that China has allowed import of Myanmar fishery products only upon production of COVID-free certificate. The GACC mentioned in a statement that to ensure the safety and effective prevention of the spreading of the COVID-19 on the goods plays an important role, to set up an effective safety system by the companies registered to export edible aquatic animals to China following these guidelines, to implement the protection system, to give specific guidelines to check COVID-19 in edible aquatic animals exported to China. Besides, the companies registered to export edible aquatic animals to China need to halt the import process immediately and need to inform China when they found the suspected COVID-19 patients in their companies or if there is a risk of COVID-19 infection in the export products.

The suspended companies should resume the export process to China after confirming that they are safe. Also, China urges companies to work together for security and convenience regarding the export of edible aquatic animals to China. Therefore, the COVID-19 free certificates essential to fishery exports to China must be issued at as soon as possible because it can cause disturbance on trading, said General Secretary U Win Kyaing of the Myanmar Fisheries Federation (MFF). Since last October, China authorities have given a permit for fishery exports only upon production of COVID-19 free certificates on products. Consequently, fishery exports, including frozen fish, prawn, eel and crabs, cannot be exported to China via the land border. Although China earlier allowed Myanmar to export fishery products without having any certificates through regular trade, China did not allow importing without the COVID-free certificates.

However, MFF is not clear about which department is responsible for issuing COVID-19 clearance certificate for fishery products. It is a new order for the COVID-free certificates on fishery products. They are not clear as to who are legal authorities. Also, there are no guidelines to check the COVID-19 on the export products. The Federation has already submitted a report to the Ministry of Agriculture, Livestock and Irrigation through the Fisheries Department to screen fishery products and receive the COVID-19-free certificates. On 21 January, a coordination meeting was held in the meeting hall of the Ministry of Agriculture, Livestock and Irrigation in Nay Pyi Taw to respond to the impact of COVID-19 on the fisheries sector. At the meeting, Union Minister for Agriculture, Livestock and Irrigation Dr Aung Thu said that coordination would be made between the governments to engage the fishery products to the potential foreign markets.

The ministry will also call for coordination with the relevant departments, including the Myanmar fisheries federation, to issue the COVID-free certificates on Myanmar fishery products. China is the second-largest buyer of Myanmar’s fishery products. During the previous financial year 2019-2020, Myanmar shipped over US$850 million worth fishery products to external markets and among them, $254 million worth exports flowed into China. The Federation expects to reach fishery export target of $1 billion in the current FY. Myanmar has earned $278.378 million from the export of fishery products over three and a half months of this financial year between 1 October 2020 and 15 January 2021. The same period of the last FY saw $301.958 million. So, this year’s amount plunged into $23.580 million, according to official data of the Ministry of Commerce. Myanmar’s marine products mainly go to more than 45 countries, with Thailand being the largest exporter followed by China.

Source: The Global New Light of Myanmar

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Relief cash fund of Social Security Board given to insured workers, employees

by COVID

The Social Security Board is providing its COVID-19 fund to the insured employees from the private owned factories, workplaces and businesses. As the 1st Wave of COVID-19 fund , the number of (825,106) insured workers and employees are given K20,763.866 million as the benefit from social security fund from 13-5-2020 to 19-1-2021. For the 2nd Wave, the number of (704,652) insured workers and employees are given K44,574.801 million from 2-10-2020 to 19-1-2021.

Moreover, for (796) insured persons in quarantine centre have received K67.586 million from 28-3-2020 to 19-1-2021. Besides, (3,620) insured pregnant employees have received K555.515 million from 22-4-2020 to 19-1-2021. In total, the Social Security Board has given a total of (1,534,174) insured workers and employees to K65,961.768 million.

Source: The Global New Light of Myanmar

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In November 2020, the second wave of COVID-19 closed car showrooms and car factories, leaving no brand new car sales and production

by MANUFACTURING

In November 2020, the second wave of the COVID-19 epidemic closed car showrooms and manufacturing plants in Myanmar, leaving no brand new car sales or production, according to regional car sales and production data released by the ASEAN Automotive Federation. The ASEAN market as a whole saw sales of 256,158 new cars in November 2020, down 13.9 percent from the same period last year, with Myanmar down 100 percent. In 2017, 8225 brand new cars were sold in Myanmar, more than 97% more than in 2016. In 2018, there were 9,299 vehicles compared to the same period in 2017. Sales increased by 113% to 17,524 vehicles in 2018.

In the Myanmar market, 4,392 vehicles were sold in 2019 compared to 2018, with 21,916 new cars (an increase of 25.1%). In January 2020, 2034 new cars; In February, 2,286 vehicles; 1979 were sold in March, and showrooms closed in April due to the first wave of COVID-19. 1253 in May; 1985 in June; 2258 vehicles in July; In August, 2,238 vehicles were sold. Due to the second wave of COVID-19, only about half of the showrooms opened in September, selling only 1,112 units, and closed again in October and November. In 2016, 4,168 new cars were sold in Myanmar. In 2018, more than 17,000 new cars were sold, and in 2019, nearly 22,000 new cars were sold. 

Myanmar is an emerging market for the sale and production of new cars, and growth is expected to continue year on year. Despite the continuous growth of new car production in Myanmar, as well as the growth of new car sales, car assembly production declined during the COVID-19 period. In January 2020, 1,459 vehicles; 1388 in February; In March, 1214 units were produced, and in April, the first wave of COVID-19 shut down car factories. 703 in May; 1313 vehicles in June; In July, 1,438 vehicles; In August, 1,558 vehicles were produced. Due to the second wave of COVID-19, the plant was operational for about half a month in September, producing only 1,587 units, and in October and November, the second wave of COVID-19 shut down car factories. 

Six ASEAN countries, including Myanmar, are involved in the production of new car assemblies. Myanmar will increase by more than 320% in 2017; In 2018, it will be close to 150 percent. In 2019, it increased by more than 24%. The Asean market as a whole saw 325,242 new car assemblies in November 2020, down 4.6 percent from the same period last year, and Myanmar was down 100 percent from the same period last year. The number of new cars assembled in Myanmar in 2017 was 4,930, an increase of 3,788 units from 2016, an increase of 328%. In 2018, 12,292 cars were assembled, an increase of 7,362 from the previous year, an increase of 149%. In 2019, 15,496 cars were assembled, an increase of 3,204 from the previous year, an increase of 26%.

Source: Daily Eleven

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Chinese traders buying Myanmar cattle on black market

by TRADING

According to the Mandalay Region Cattle Exporters Association, China has been purchasing cattle from Myanmar on the black market. Chinese traders are buying cattle on black markets (Lweje, Chinshwehaw and Wa border areas). However, about 15,000 heads have stranded in Muse for shipment to China through a legitimate route. Chinese traders keep purchasing cattle through illegitimate channels via Lweje, Chinshwehaw and Wa border areas. They do not want cattle in Muse, which is a legitimate trade route. This action is like supporting the black market instead confirmed by the Chairperson of the Mandalay Region Cattle Exporters Association.

Around 2,000 heads of cattle are daily traded on black markets, he continued. As a result of this, some traders brought the cattle from Muse back to their home owing to the burden of high feedstuff cost and labour wages. However, some are still waiting for a positive outcome from the bilateral negotiation on cattle export, which will be held in January-end. Moreover, some intentionally stated that they would return to the original designated place but conduct illegal trade in border areas. Some traders from Muse turn to black-market instead of going back to home. Regarding cattle exports via Muse, the trading system needs to be changed. Failure to do so cannot avoid a similar event in future. Price manipulation and financial fraud problems will keep arising, said by Myanmar Livestock Federation’s vice-chair.


Such kind of problems will happen as they are carrying out trade in the border area without having trade agreement. They should have made the deal in advance like goat exporters. This can avoid the scam and goods stuck in the border area. The trade hub should have been in Mandalay or Shan State rather than Muse border. It’d be better if the department concerned grants licence for delivering goods to the border after trade deal. About 15,000 heads of cattle, owned by 150 companies, are now stranded in Muse border as China stopped purchasing cattle. The labour wages and feedstuff cost burden them. It costs K400,000-600,000 to take care of 100 heads of cattle every day. For legitimate trade, China permits live cattle import only after ensuring the cattle is free from 20 diseases including Foot and Mouth Disease, along with vaccination certificates, health certificates, and farming registration certificates.

Therefore, the officials concerned from the two countries are negotiating this. Earlier, 1,500-2,000 heads of cattle were daily traded through Muse border. China halted cattle trade with China stepping up border control as precautionary measures for the COVID-19 and other reasons, the association stated. Additionally, Myanmar’s live cattle export relies heavily on the China market due to a reasonable price. However, Myanmar has other external markets such as Laos, Thailand, Malaysia, and Bangladesh.
The Ministry of Commerce grants a permit to each company for 100 cattle export, and the pass is valid for three months. The companies can be taken legal actions if they do not sell the cattle during a three-month period.
Live cattle export was allowed in late 2017, to eradicate illegal exports, creating more opportunities for breeders and promoting their interests.
Myanmar can yearly export around 500,000 heads of cattle beyond domestic consumption, the association stated.

Source: The Global New Light of Myanmar