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YSX trade volume drops to lowest in September

by TRADING

The volume of shares traded on the Yangon Stock Exchange (YSX) in September sank to the lowest level of 85,237 shares, yet the value slightly rose to K838.6 million against August’s rate due to the increase in share prices, according to YSX’s monthly report. The trading volume last month plunged from 118,850 shares registered in August, the statistics indicated. The stock markets worldwide have reported their largest declines since the 2008 financial crisis. Similarly, the local equities market is also scared by the COVID-19 crash, a market observer points out.

In January 2020, 196,836 shares worth K1.25 billion were traded on the exchange while 188,919 shares, with estimated value of K1.48 billion were traded on the business in February and 228,913 shares valued K1.42 billion were traded in March respectively. It touched the lowest of K902 million with 173,808 shares in April. It rose to K1.2 billion with 200,416 shares being traded in May. The share volumes traded on the exchange surged to 221,682 in June, with estimated value K1.3 billion and then, it fell to $1 billion with 125,137 shares in July. Next, the Securities and Exchange Commission of Myanmar (SECM) allowed foreigners to invest in the local equity market in March 2020. Foreigners have held 53,850 shares in the equity market as of 2 October. In September, the share prices of the listed companies on the exchange, except EFR, also showed an increase compared with August’s prices. The share prices of FMI were closed at K10,000 per unit, MTSH at K3,700, MCB at K8,000, FPB at K22,5000, TMH at K2,700 and EFR at K3,000 respectively.

The YSX was launched three years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment seminars. To boost the trading, the YSX had doubled its stock trade matching time from two to four per day last year. The exchange launched seven times matching per day on 26 March 2020. Since 2017, it has held promotional events to attract new investors and encourage existing investors to trade more actively. The stock exchange has also sought the government’s support to get more public companies to participate in the stock market and help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge. A total of 2.4 million shares worth K13.39 billion were traded on the YSX in 2019, a significant increase compared to the previous year, according to the annual report released by the exchange. 

Source: The Global New Light of Myanmar

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Supportive service system to benefit local entrepreneurs

by SERVICES

Myantrade will set up a supportive service system for the local entrepreneurs, according to an officer from the organization. To set a milestone of the business support in Myanmar, the Myanmar Trade Promotion Organization provided advanced trade information service and management technique pieces of training to some 40 government officials from Myantrade headquarters and regional trade centres and 15 Myanmar commercial trade attaches from foreign countries.

The two-day training that started from 22 to 24 September is part of the larger initiative aims to upgrade the availability and accuracy of businesses, market and trade information available to the local small and medium-sized enterprises (SMEs) which want to reach foreign markets. The training gave Myantrade’s trade information officers the practical skills on how to analyze trade and market information resources. Providing reliable and timely trade information will enable the officers to assist their small businesses better to make them competitive in the global markets using up to date market intelligence. So, the exporters can get information safely online during COVID-19 crisis.

Embracing these new tools and methodologies can improve our capacity to provide modern and effective information services to everyone interested in trading. Myantrade is the Trade Promotion Organization of Myanmar which is aimed at promoting the trade and export of Myanmar through the building of the capacities of the local companies to make effective competition in the regional and global markets. Moreover, Myantrade aims to tag the label of “Made in Myanmar” brand on Myanmar’s goods and services.

Source: The Global New Light of Myanmar

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Myanmar Investment Promotion Plan (2021-2022), which aims to draw USD 8.5bln investment, has to be re-evaluated due to COVID-19

by INVESTMENT

According to the Myanmar Investment Promotion Plan, foreign investment is expected to reach $ 8.5 billion from the 2021-2022 fiscal year, but due to the COVID-19 outbreak, those targets will be reconsidered, according to the Directorate of Investment and Company Administration. Starting from the 2021-2022 financial year, they have set a target of $ 8.5 billion. This is also being prepared for consideration by the Myanmar Investment Promotion and Facilitation Committee, which is mentioned above, in advance of the coming 2021-2022 financial year.

Due to COVID-19, some businesses were allowed to enter due to traffic restrictions, but were not allowed to do so, which reduced Myanmar’s foreign investment target for the 2019-2020 fiscal year. In the 2019-2020 fiscal year, foreign investment in Burma was projected at $ 5.8 billion, but only $ 5.68 billion came in. However, in the context of COVID-19, investors have limited access; There are also restrictions on what can be done after the visit. Similarly, Rangoon and Nay Pyi Taw, most of which have government offices in Naypyidaw, are difficult to access due to traffic congestion.

In the 2018-2019 fiscal year, $ 4.52 billion in foreign investment flowed into Myanmar. Myanmar is implementing a 20-year Myanmar Investment Promotion Plan aimed at becoming a middle-income country by 2030. It also aims to attract more than $ 220 billion in investment in Myanmar over the next 20 years and attract more responsible investment. Aiming to increase foreign investment in Myanmar, the Myanmar Investment Commission, in collaboration with the Japan International Cooperation Agency, drafted a long-term foreign direct investment promotion plan in 2013 and implemented it in 2014.

Source: Daily Eleven

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Myanmar’s manufacturing sector hit hard by new lockdown plan

by MANUFACTURING

Myanmar’s manufacturing sector has been hit hard by the new Lockdown program, which has led to a slump in production and the closure of many factories, reducing many jobs, according to the September 2020 Nikkei Myanmar Manufacturing PMI. Myanmar’s manufacturing sector has been hit hard by a number of new lockdown plans to combat the growing Coronavirus outbreak. Factories in Rangoon Division, including major industrial zones, temporarily closed, both production and new orders fell sharply and jobs were cut. Deteriorating business conditions in September abruptly ended the short recovery period between July and August.

Myanmar’s manufacturing PMI stood at 35.9 in September, down from 53.2 in the previous month, signaling a sharp decline in manufacturing. At 35.9, the second-lowest level in the survey, which began in December 2015, was higher than April 29, but the one-month PMI decline of 17.3 was the highest in record history, surpassing the April drop of 16.3. Four of the five components of the PMI were negative in September, with the exception of supply delays. Both production and new orders fell for the second-highest rate in survey history, with indexes falling more than 28 points in a single month. The list of jobs and inventories fell at the fastest rate in three to six months, respectively. Production fell sharply in September as the virus forced the closure of factories in key areas. More than half of the companies surveyed, 54 percent, reported lower production than the April record 81 percent, the latest decline in the three-month period after the spring lockdown.

New restrictions slowed demand during the period, and the number of new jobs fell in June-August, after a surge in new production, making it the second-highest rate in survey history. Demand in domestic markets was particularly weak, with new export orders, which stabilized in August, fell this month. India Thailand Businesses reported weak demand in Asian markets, including Vietnam and Qatar. New jobs fell sharply in September, while inventories fell at the strongest pace in three months, and the 12-month production outlook slipped to its weakest point in April. Many factories closed and jobs plummeted, declining again for the first time in seven months in August. About 16 percent of companies cut their workforce, the highest number of any period since the second quarter of 2020. Imports fell sharply in September, and inventories fell to a four-month high. Depreciation pressures continued in September, with selling prices hitting record highs as import prices fell.

Source: Daily Eleven

Border trade restrictions lifted between Myanmar, Thailand

by TRADING

Trade at the Myanmar-Thai border has resumed after a two-week standstill. After 12 days of only following six vehicles to travel between Tachilieik, Shan State, and Mae Sai in Thailand as part of restrictions to contain COVID-19, both sides agreed on September 30 to resume trading as usual. Due to the pandemic, there will be a reshuffle of drivers and vehicles when passing between Myanmar and Thailand but there will no longer be other restrictions on the trucks from both sides.

Trade at Tachileik, the border town between Myanmar and Thailand, had come to a standstill after Thai authorities on September 17 imposed restrictions allowing just six vehicles from Myanmar to enter the Mae Sai trade post in Thailand. Myanmar drivers, who were also prohibited from passing though, had to switch places with Thai drivers at the border. The Thais had prohibited Myanmar drivers from entering through the border after cases began rising in Myanmar but neglected to discuss the restrictions with their Myanmar counterparts. The Myanmar side then reciprocated with similar measures, forcing Thai vehicles to register in Myanmar to transport goods.

Without any imports from Myanmar, Thai traders are estimated to have incurred up to THB1 billion in losses from September 17 to 29. Both sides have agreed to make bilateral discussions whenever there are cases at border areas involving public interests. The driver shuffle system will still be in place when using Thailand-Myanmar Friendship Bridge No.2 and trucks will commute between trade posts as usual. Small traders will also be eligible to travel on the No.2 Bridge with small vehicles without limitations.

Source: Myanmar Times

Rice and broken rice were exported more than 2.5 million tonnes

by TRADING

Myanmar is expected to export 2.5 million tonnes of rice and paddy in the 2019-2020 fiscal year, and more than 2.5 million tonnes of rice and paddy were exported more than 20 days before the end of the fiscal year, according to the Myanmar Rice Federation. In the 11 months from October 1 to September 11 of the 2019-2020 fiscal year, 2.531 million tonnes of rice and broken rice were exported, earning $ 774.891 million. During that period, it exported 1.583 million tonnes of rice to 66 countries, earning $ 517.1858 million. It earned $ 257.733 million from exporting about 950,000 tonnes of broken rice to 60 countries.

In the current fiscal year 2019-2020, up to 2.5 million tonnes of rice and broken rice can be exported. The 2019-2020 fiscal year will end at the end of September, just days before the end of the fiscal year. By the end of the fiscal year, more than 2.5 million tonnes of rice and broken rice had been exported. Myanmar exports both rice and broken rice through both seaborne and cross-border trade. In the first 11 months of the current fiscal year, seaborne trade accounted for more than two million tonnes of rice and broken rice, accounting for 84% of total exports. Over 400,000 tonnes of rice and broken rice were exported from border trade points, earning more than $ 120 million, accounting for 16 percent of total exports. Of the 66 rice exporters, China is the largest exporter of more than 540,000 tonnes. Of the 60 countries that exported broken rice, Belgium was the largest exporter, with more than 240,000 tonnes.

According to the annual acreage and yield of paddy in Myanmar, in the 2014-2015 financial year, 17722355 acres (over 17 million) were planted and 264233319 tons (over 26 million) were produced. In the 2017-2018 financial year, 17930294 acres (over 17 million) of paddy fields were planted and the yield was 25624492 tons (over 25 million), which is the lowest year in the last four years. In the 2018-2019 fiscal year, 17861055 acres (over 17 million) of paddy fields were planted and the yield was 27573589 tons (over 20 million), which is the highest paddy yield period in the five years from the 2014-2015 fiscal year to the 2018-2019 fiscal year.

Source: The Global New Light of Myanmar

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Myanmar’s economic growth has declined to 0.5 percent due to COVID-19

by ECONOMY

The COVID-19 epidemic has significantly slowed Myanmar’s economic growth to 0.5 percent, with a new wave of regional outbreaks; Long-term impact on the global economy; Domestic financial sector uncertainty; The World Bank’s October East Asia and Pacific Economic Review, released by the World Bank in October 2020, states that risks remain due to the November 2020 election. From Restricted Control to Rehabilitation COVID-19 provides information on epidemic impact in developing countries in the East Asia-Pacific region. Restrictions have three effects: the impact on a country’s economy and the effects of the global economic slowdown.

In some countries, controlling the spread of the virus, the domestic economy may recover. But a region’s economy is heavily dependent on the rest of the world, and global demand is quiet. The region as a whole is projected to grow by 0.9 percent, the lowest rate since 1967, by 2020. The outlook for the region is to maintain a normal recovery by 2021; It is projected to grow 7.9 percent in China and 5.1 percent in other regions, given the return of core businesses and the availability of vaccines. However, the results for the next two years are expected to remain below pre-epidemic estimates. Outbreaks appear to be exacerbated by the pre-epidemic target of 2021 by 2021. Poverty in the region is projected to rise for the first time in 20 years. It is estimated that nearly 38 million people will continue to live in poverty or return to poverty due to epidemics.

In Myanmar, the COVID-19 epidemic slowed economic growth to 0.5 percent in the 2019-2020 fiscal year. This situation is also affecting the recent results of poverty alleviation. The recent slowdown in manufacturing; Investment in the power, energy and digital technologies sectors is expected to pick up as growth picks up. New wave of regional outbreaks; Long-term impact on the global economy; Domestic financial sector uncertainty; The ongoing conflict and the November 2020 election situation will continue to pose challenges. Kovis-19 is not only the poorest of the poor, but also the poorest of the poor. Regions are facing unexpected difficulties and governments are making difficult choices. But there are also clever policy choices that could ease such deals.

Source: Daily Eleven

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Myanmar pharmaceutical imports soar to $557 mln in Oct-July period

by ECONOMY

The import value of Myanmar pharmaceutical products amounted to US$557.08 million in ten months of the current financial year 2019-2020, the Central Statistical Organization’s trade statistics indicated. The figure rose from $434.7 million registered in the corresponding period. Myanmar imports 90 per cent of medicine and medical products through foreign markets. India is the leading supplier of Myanmar. Also, it is imported via Bangladesh, China, Germany, Indonesia, Japan, Republic of Korea, Malaysia, Philippines, Singapore, China (Taipei), Thailand, US and Viet Nam. During the COVID-19 pandemic, the international countries prioritize local sufficiency. Some states restricted exports of medical products. China suspended its exports. India also controlled exports of medicines, PPE and ventilators.

The shortage of medicines occurs at the present time, even in some private hospitals. Some pharmacies are temporarily closed amid the resurgences of coronavirus. The government has already urged people not to make panic buying on medicines. The large purchases by consumers have contributed to the price rise in the local market. The ministry launched the online licensing system for export and import businesses starting from 1 April, intending to reduce the person-to-person contact and mitigate the spread of COVID-19. Of the items available online licensing system, medicines and raw materials for the pharmaceutical industry are exempted import licence fee and the number of items is not restricted.

Furthermore, the pharmaceutical industry is excluded from the government’s Stay-at-Home order issued on 20 September 2020. The Myanmar Chamber of Commerce for Pharmaceutical & Medical Device (MCCPMD), founded on 2 April 1999 as a non-governmental organization (NGO), aims to improve healthcare services for people, abide by the national drug regulations, and enhance public healthcare collectively. MCCPMD members are owners of local companies, foreign-owned companies, individuals and entrepreneurs. 

Source: The Global New Light of Myanmar

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Household service providers in Myanmar among latest COVID-19 casualties

by SERVICES

Providers of housekeeping and home maintenance services are among the latest casualties of the second wave of COVID-19 in Myanmar. Many have suspended their businesses in view of the spread of the virus in the past month. Demand for housemaids, cleaners, and other household service providers has collapsed and these businesses have also been suspended to protect their workers from becoming infected, a local startup providing household services.

Besides water pipe maintenance, AC and electrical servicing, all other services have been suspended. As our workers cannot work from home, our businesses will stop until the end of this year. Even if the disease is controlled and businesses in the industry restart, it will take six to seven months for maid and cleaning services to return to normal.

MyanAnts had resumed business as a usual in May, after the first wave of COVID-19 but is now closed again. Household services, which mainly include part-time housework and cleaning services became popular in 2017 and demand had reached a peak in early 2020, before the pandemic.

Source: Myanmar Times

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CMP garment exports worth $3.74 bln in Oct-July

by MANUFACTURING

Exports of garments manufactured under the cut-make-pack (CMP) system were valued US$3.74 billion in the period between 1 October and July-end in the current financial year 2019-2020. Myanmar’s manufacturing sector is primarily concentrated in CMP garments and textiles, which contribute to the country’s GDP to some extent. The garment sector is among the prioritized sectors driving up exports. The CMP garment industry has emerged as a promising one, with preferential trade from Western countries. The majority of Myanmar’s garment factories operate under the CMP system, and those engaged in this industry are striving to transform CMP into the free-on-board (FoB) system. Following the negative impacts caused by the COVID-19 on the garment industry, some CMP garment factories have shut down on the reason for the lack of raw materials, leaving thousands of workers unemployed.

The COVID outbreak and spread hit the labor-intensive businesses so severely, the Directorate of Investment and Company Administration (DICA) stated. However, foreign direct investments flow into many types of businesses, including garment enterprises. The foreign investors are not bothered by the disputes between employers and employees and the closure of some CMP businesses during the meantime. Of the investment proposals, the manufacturing and labor-intensive industries are prioritized by the commission. Myanmar Investment Commission is endeavoring to accept investment projects in manufacturing masks, pharmaceuticals and others which can contribute to the fight against the coronavirus in the country at the soonest. Supply chain disruptions and cancelling customer orders following the coronavirus outbreak hurt the global textile industry. Similarly, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is bracing for downward trend because of the cancellation of order from the European countries and suspension of the trade by western countries amid the pandemic.
At present, all the garment factories have been temporarily closed due to the coronavirus resurgence.

The export value of CMP garments was only $850 million in the 2015-2016 financial year, but it has tripled over the last 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. It tremendously grew to $4.6 billion in the 2018-2019FY. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. With demand from foreign trade partners growing, imports of CMP raw materials are rising year by year. Since an outbreak like COVID-19 might happen in the future, it is necessary to prepare for a sufficient supply of raw materials. The public and private sectors will cooperate in setting up the supply chain on our own sources, including weaving, knitting, dyeing, and sewing factories. The MGMA has more than 700 members, and garment factories in Myanmar, employing more than 500,000 workers. Investors prefer to invest in countries with inexpensive labor, such as Myanmar.

Source: The Global New Light of Myanmar