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UK opens door to Myanmar avocado

by TRADING

MYANMAR has successfully delivered avocado to the UK’s market on trial, according to the press statement issued by the Embassy of the Republic of the Union of Myanmar in London on 14 November. Amara Variety (local variety), Hass and Buccaneer varieties were placed on the UK’s market in the previous week, under the programme of Myanmar Fruit, Flower and Vegetable Producers and Exporters Association (MFVP). Freshpro Imports Limited distributed them through the wholesalers of London and Sheffield cities. It has earned good reviews from the consumers. Myanmar Embassy in London has been exploring the markets for potential Myanmar products in the UK in line with the government’s policy, especially prioritizing the agricultural products and new local products. Additionally, Myanmar Embassy, in coordination with the British Chamber of Commerce, will hold a webinar on 19 November for Myanmar exporters regarding the agricultural exports to the UK.

Myanmar is exporting the avocado to China and Thailand through the land border. However, there is no guarantee, and the price is relatively low. Therefore, official trade pacts with China and Thailand are required for Myanmar’s avocado exports, said U Lin Thant Aung, secretary of MFVP. Furthermore, he suggested that the government form a committee including all the stakeholders such as the growers, processors, exporters in the supply chain, intending to facilitate the trading. He also made a further request for the high government officials to suggest Myanmar’s avocado during their foreign visits. Myanmar currently exports 5,000-10,000 tonnes of local avocado varieties to Thailand and China through the land border. Those varieties fetch between K800 and K1,000 per kg, MFVP stated. Meanwhile, around 3,000 tonnes are yearly sold in the domestic market. The demand is high when there is an increase in tourist arrivals. The avocado is primarily grown in Chin Hills, Shan highland, Nawnghkio and PyinOoLwin areas, having around 25,000 acres.

There are thousands of Myanmar avocado varieties, and the avocado of foreign origins are also found. Myanmar’s avocado is abundant in October and the harvest season extends up to April. Myanmar prioritizes the fruit quality that meets international market standards for market potentials. Efforts are being undertaken to legally export Myanmar’s avocado to more foreign UK opens door to Myanmar avocado. A woman grower is picking Myanmar avocado. The peanut from India is about US$100 cheaper than those in China. Furthermore, as it will be produced on a CMP basis, the tax exemption is also requested. Myanmar grants tax-exempt on raw material import if the goods are exported with a few exceptions. Myanmar’s peanut is priced K3,200 per viss (a viss equals to 1.6 kg), while the peanuts from China fetches K2,400 per viss. Myanmar’s peanut is of high quality with the use of natural fertilizer. Myanmar peanuts are offered 200 Yuan higher than those produced in China.

The import news drove the price cool, and the buyers are closely
observing the market. Myanmar shipped over 150,000 tonnes of sesame in the previous financial year 2019-2020, generating an export value of US$240 million, the Commerce Ministry’s data showed. Typically, Myanmar exports about 80 per cent of sesame production to foreign markets. China is the primary buyer of Myanmar sesame, which is also shipped to markets in Japan, South Korea, China (Taipei), UK, Germany, the Netherlands, Greece, and Poland among the EU countries. The EU markets prefer organic-farming sesame seeds from Myanmar, said an official from the Trade Promotion Department. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China buys various coloured sesame seeds from the country. This year, Japan has not purchased Myanmar’s sesame yet. For the current budget year 2020-2021, Myanmar traders target to export over 130,000 tonnes to foreign partners, traders from Mandalay market said. Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the leading producer of sesame seeds. The seeds are also grown in Mandalay and Sagaing regions. Of the cooking oil crops grown in Myanmar, the acreage under sesame is the highest, accounting for 51.3 per cent of the overall oil crop plantation. The volume of sesame exports was registered at over 96,000 metric tons, worth $130 million, in the financial year 2015-2016; 100,000 tonnes, worth $145 million, in the 2016-2017FY; 120,000 tonnes, worth $147 million, in the 2017-2018FY; 33,900 tonnes valued $43.8 million in the 2018 mini-budget period, and 125,800 tonnes, worth $212.5 million in the 2018-2019FY, the trade data of Central Statistical Organization indicated markets in 2023. Myanmar Avocado Producers and Exporters Association was established in 2018, with 800 members.

Source: The Global New Night of Myanmar

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China forecast to be top Myanmar investor this fiscal year: UMFCCI

by INVESTMENT

With the bulk of Chinese capital invested in the infrastructure sector, China is likely to be the top foreign investor in Myanmar in fiscal 2020-21, according to the Union of Myanmar Federation of Chamber of Commerce and Industries (UMFCCI). Investments are also likely to come from China as the country has already started to recover from COVID-19.

Myanmar can expect Chinese funds to flow into strategic infrastructure projects that support its Belt and Road Initiative. China invested over US%3.47 billion in 375 businesses in Myanmar since fiscal 2016-17, according to the Directorate of Investment and Company Administration (DICA). Besides China, another potential investor is likely to be the US.

The US appears keen to accelerate its investments in Myanmar and it could seek to offset some of China’s current projects in the country beyond COVID-19. The US may increase its investments in energy, telecommunications, tourism, and natural gas production sectors. Myanmar is targeting US$5.8 billion in foreign investments in 2020-21 and US$ 8.5 billion in 2021-22. It is aiming to promote and draw investments into the agriculture, fisheries, industrial and technology sectors this year.

Source: Myanmar Times

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DHL Express raises investment in Asia as e-commerce expands

by SERVICES

DHL Express will spend close to EUR 750 million to expand its global infrastructure and network over the next two years, the company said this month. Around EUR 60 million to expand its air network in Asia Pacific by introducing new direct flight routes connecting its logistics hubs in the region to Yangon and Vientiane in Laos. DHL Express said it expects shipment volumes in Asia Pacific to be 30percent-40pc larger than last year’s peak season, which typically starts around November and lasts until the Lunar New Year.

Ken Lee, CEO of DHL Express Asia Pacific, said the investment are “crucial” as the company is anticipating an “usually strong peak season.” The expanded infrastructure and new flight routes across Asia Pacific will also position the company to benefit from a growing e-commerce market and cross- border trade in the longer run, he said. Since the start of 2020, DHL Express has experienced a 50 pc surge in e-commerce shipments in Asia Pacific (excluding China), the company said. DHL Express will invest EUR 25 million to build a new facility in Bangladesh that will combine its country office and service center into a 10,000 sqm site.

The new facility will bring about an approximate 35pc increase in shipment processing capacity, and is expected to be opened in 2022. Meanwhile, the company will triple its capacity in Malaysia, with a new EUR39.4 million facility enabling it to increase its processing capacity by more than 200pc in the region. This, too, is scheduled to be completed by 2022. At the same time, construction of a new gateway facility in Bangalore, India is underway, slated to be ready by 2021. The company will also build new facilities in Australia, Japan, Hong Kong, South Korea countries and new airline networks will be expanded to Beijing and Yangon.

Source: Myanmar Times

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Muse trade dives by $353 mln amid COVID-19 resurgence

by TRADING

The value of Myanmar-China border trade through Muse land border plunged to US$264.46 million over the first months of the current financial year 2020-2021 owing to the impacts caused by the COVID-19 resurgence. The figures reflect a decrease of $353.5 million compared to the corresponding period of the previous budget year, according to the Ministry of Commerce. Exports through Muse border were worth $126.136 million, while imports were valued at $138.32 million between 1 October and 6 November 2020. During a-year ago period, Muse border post witnessed trade worth $617.976 million.

Muse border checkpoint is an essential one in Myanmar and handles an enormous volume of trade. But at times, it has experienced a sharp drop in business on account of China clamping down on illegal goods, resulting in a halt in trading of agricultural products. Moreover, the COVID-19 impacts slow the trade this year. Following the COVID-19 consequences, trading via Muse did not reach a monthly target of above $400 million in the previous months this year. Myanmar intended to reach the trade target of over $5 billion through Muse for the last FY. However, only $4.8 billion worth goods were traded. Border trade values at Muse stood at $5.4 billion in the 2016-2017FY, $5.8 billion in the 2017-2018FY and $4.9 billion in the 2018-2019FY respectively, as per data of the Commerce’s Ministry. At present, China has been stepping up border control measures to contain the spread of the Covid-19. Therefore, Chinese buyers do not come to Myanmar border crossings in light of COVID-19 fears, forcing Myanmar truck drivers to leave for Wanding area to sell the goods.

Following the detection of COVID-19 cases in Ruili (Shweli), China shut down its Customs office from 15 September, and it was reopened on 22 September, said U Min Thein, vice-president of Muse rice depot. On 9 November, some people tested positive for COVID-19 were found. The traders are worried about the possible lockdown and the closure of crucial Customs office in China like before. The trading is still open for now. Yet, the temporary trade suspension will harm the traders a lot during the meantime, the traders stressed. Myanmar exports agricultural products, including rice, beans and corns, and fishery products such as crab, prawn, etc. Furthermore, Myanmar’s natural gas export to China is also conducted through Muse-Ruili border. The raw CMP materials, electrical appliance and consumer goods are imported into the country.

  Source- The Global New light of Myanmar

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Rebooting Myanmar Tourism in Post Covid-19

by EVENT

Date: 21 November 2020, 12:30 P.M – 2:30 P.M

Speakers:

  1. U Thant Zaw (Unique Discovery Travels)

2. U Myo Min Zaw (Tour Guide and Founder of Bagan Goat Herding Tour and Inle Canoe Lady)

3. U Thiha Lu Linn (Travel Blogger)

4. Daw Nilar Win (Independent Research Specialist)

Moderator – U Thu Ta Aung (Executive Chairman, The Mandalay Forum For East Asian Studies)

Contact address: https://www.facebook.com/theMandalayForum

Organizer: The Mandalay Forum For East Asian Studies

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COVID-19 second wave more severe on local firms than first

by COVID

The economic impact of the second wave of the COVID-19 pandemic, has been more severe on Myanmar businesses than the first wave, according to the World Bank’s latest firm-level survey. The latest survey, the fourth in a series of eight surveys planned, was conducted in September and covered a nationally representative sample of 500 firms. The survey, which covers the second wave of COVID-19 and re-introduction of stay-at-home orders that started initially in Rakhine in late August and then in Yangon in early September, found that local firms were not well-prepared to withstand the second wave. Of those surveyed, 66 percent reported that they were not ready, and agricultural, micro and smaller firms were founded to be the least prepared.

On average, 83pc of firms in Myanmar reported a negative impact on their businesses, an increase from the 75pc reported in August. Firms of all sizes experienced a rise in temporary closures in September after the government imposed stay-at-home orders on businesses in Yangon. As compared to August, all sectors except those in agriculture, saw a rise in business closures. As people have lower incomes, spending has declined and consumer demand has fallen. As a result, there are more difficulties for businesses. It will take time for the country’s economy to recover. That efforts are needed to rebuild entire supply chains using resources in the country, from raw material to finished products, to meet the needs of the domestic market and to increase export capacity to foreign markets. Reducing in sales remains the number one concern of firms surveyed, more so far smaller firms than larger ones.

The share of firms reporting a reduction in sales in 93pc in September, a 12 percentage point increase from August. Issues related to capital appears to be a growing problem for a greater share of firms in September. There were more firms that filed for insolvency and bankruptcy, laid off workers and experienced difficulties with making payments on loans and credits facilities compared to before. In September, half of the surveyed firms in agriculture and about a third of retail and wholesale firms reported the likelihood of falling into arrears within the next three months. With the onset of the second wave, firms reported less confidence that they will remain open for business. Firms in September expressed less confidence regarding their likelihood of remaining operational in one month, compared to August.

Source: Myanmar Times

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Myanmar citizens raise investments in the country despite pandemic

by INVESTMENT

Despite COVID-19, Myanmar citizens’ investment across the regions and states for fiscal 2019-20 amounted to over K1.88 trillion, which is around K200 million higher than in the previous fiscal year. Approval was given to over 130 Myanmar businesses to invest in nine sectors during the period, data showed. Yangon Region received the highest volume of investments with over K901 billion from 50 local investors.

Mandalay Region received funds of K410 billion, while Shan and Ayeyarwady received K170 billion and K161 billion, respectively. Investors also channeled funds into Bago, Tanintharyi, Sagaing, Mon and Kayin. They also invested in the other states and regions, including the two poorest – Rakhine and Chin. The majority of the investments were in the industry, hotels and tourism and housing and development sectors. A handful of investors also channeled funds into the power supply, oil and gas and mining sectors, which is typically dominated by foreign investors.

Despite the government’s plan to promote growth and value-add in agriculture, livestock and fisheries, few local firms invested in the sector. The MIC then issues a Commercial Operation Certificate which enables investors to enjoy benefits such as tax relief and exemptions and other privileges. In fiscal 2019-2020, over 23,000 job opportunities were generated as a result of Myanmar citizens’ investment, data showed. Some 22,700 locals and over 480 foreign workers were employed.

Source: Myanmar Times

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Myanmar to promote agri-exports posts COVID-19

by COVID

Myanmar will raise efforts to add value to the domestic agriculture industry by promoting exports post COVID-19, said U Khin Maung Lwin, assistant secretary for the Ministry of Commerce. They will take action to promote their best crops internationally, including rice, corn and beans after the pandemic, adding that similar efforts will be made to promote Myanmar fisheries and livestock, as “these areas have good export potential.” Despite the pandemic, agriculture and maritime exports have increased in the current fiscal year so far, compared to the same period in fiscal 2019-2020. For example, Myanmar has so far exported about 2.2 million tonnes of corn to Thailand, which pigeon peas are being sold to India.

The country will also focus on promoting the export of new crops such as coffee and is already making efforts to penetrate new markets. According to the Myanmar Coffee Association, Myanmar will expand its local highland coffee exports through Singapore. They are connecting with new markets in the region through Singapore. The association last month participated in the Singapore Specialty Coffee Online Auction 2020, which provides a platform for global coffee bean producers to promote and introduce their beans to an Asian market, using Singapore as a hub. Myanmar’s coffee garnered international interest during the auction, despite the lack of buyers due to COVID-19. A local coffee entrepreneur demand for Myanmar-produced coffee should rise due to its superior quality. Then, their coffee production rate and sales will gradually get broader.

Raising exports will also help the country further narrow the trade deficit. In fiscal 2019-20, total trade between Myanmar and foreign countries amounted to US$36.6 billion. Between October 1, 2019 and September 30, Myanmar exports totaled over US$17.6 billion while imports reached over US$19 billion. As a result, the country recorded a trade deficit of US$1.3 billion, up from over US$ 1 billion in fiscal 2018-19. Myanmar needs to make preparations and arrangements to increase trade volumes as it might face setbacks due to COVID-19 in fiscal 2020-21. The NLD government has already moved key trade administrative functions, such as applying for import and export licenses, online. Myanmar can further increase exports by producing value-added products which are competitive in price and quality.

Source: Myanmar Times

The average inflation rate was 5.81%, and the inflation rate fell for seven consecutive months

by ECONOMY

The average inflation rate in September 2020 was 5.81 percent, and inflation has been declining for seven consecutive months since March 2020, according to the Consumer Price and Inflation Index released by the Central Statistics Office. The average inflation rate rose for 18 consecutive months from April 2018 to September 2019. It fell slightly in October and November 2019, and in December 2019. As of September 2020, the average annual rate of inflation is 5.81 percent, and the average annual rate of inflation-core inflation, excluding food and fuel prices, is 11.23 percent. The annual on-year inflation rate is 2.03 percent, and the calculated annual year-on-year inflation rate excluding food and fuel prices is 4.74 percent. However, since the outbreak of COVID-19 in Myanmar in March 2020, declining household consumption and falling fuel prices pushed year-on-year inflation from March 2020 to 2.03 percent in September.

For the country as a whole, the average inflation rate, based on consumer prices in the 2012 base year, averaged 5.81 percent year-on-year through September 2020, down 0.62 percent from 6.43 percent a year on-August 2020. The average inflation rate from October 2019 to September 2020 rose from 8.61 percent in September 2019 to a record high of 9.20 percent in February 2020. However, in September 2020, due to the effects of the COVID-19 epidemic in Myanmar, public consumption declined and consumer price growth slowed. In September 2020, the average inflation rate in Ayeyarwady Region was the first highest at 10.83%. Mandalay is the second highest with 9.54%. It was the third highest in the Union Territory with 7.48%.

Annual inflation was the highest change rate in the Union Territory at 5.53% and the lowest in Mon State at 2.80%. Inflation is the long-term increase in general prices, which means that the prices of basic commodities continue to rise. For a period of time, when the general price of goods and services in the business environment rises, the same unit of currency can be purchased, but less goods and services can be purchased. In other words, inflation affects the purchasing power of money. It depreciates the value of a currency unit. The measure of inflation is called the Inflation Rate, which refers to the annual percentage change in a general price index, called the Consumer Price Index (CPI).

Source: Daily Eleven


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Myanmar goods trade deficit with Singapore estimated at $10.7 bln in 4 years

by TRADING

MYANMAR trade deficit in goods with Singapore was estimated at US$10.72 billion in the past four years, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The value of Myanmar’s bilateral trade with Singapore topped $15.46 billion between the FY2016-2017 and the FY2019- 2020 (as of August). The CSO reported that imports surpassed exports in trade with Singapore in the past four years, with exports reaching over $2.37 billion and imports valued at over $13.09 billion.

Singapore is Myanmar’s second-largest trading partner in the region, after Thailand. It accounted for 10.56 pc of total trade in FY2016-2017 with an estimated trade value of $3.4 billion, 11.59 pc in FY2017-2018 with a trade value of $4.15 billion, 9.98 pc in the FY2018-2019 with $3.5 billion and 12.76 pc in the FY2019-2020 (Oct-August) with $3.64 billion respectively. Myanmar exports agricultural products such as broken rice, pulses, sesame seeds, onion, footwear, textiles and clothing, minerals, and other products to Singapore.

At the same time, it imports plastic, fuel oil, edible oil, transport equipment, chemical elements and compounds, wheat flour, pharmaceutical products, dairy product and consumer products. Next, Singapore is the top source of foreign direct investments into Myanmar in the incumbent government period, bringing in the capital of $10.9 billion by 124 Singapore-listed enterprises, according to data released by the Directorate of Investment and Company Administration (DICA). Singapore companies put investments into urban development, real estate, power and manufacturing sectors.

Source: The Global New Light of Myanmar