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FDI tops $25 bln in incumbent government period

by INVESTMENT

Myanmar has attracted more than US$25 billion of foreign direct investments over the past four and half years under the incumbent government, according to the Directorate of Investment and Company Administration (DICA). The Myanmar Investment Commission (MIC) and the respective investment committees granted permits and endorsements to 1,032 foreign enterprises between the 2016-2017FY and 2019-2020FY, with estimated capitals of US$25.186 billion.

The FDIs stood at $6.9 million from 158 enterprises in the FY2016-2017, $6.119 billion from 234 businesses in the FY2017-2018, $1.94 billion from 89 projects in the 2018 mini-budget year, $4.5 billion from 298 enterprises in the FY2018-2019 and $5.689 billion from 253 businesses in the FY2019-2020 respectively, the DICA’s data indicated. The FDIs flow into the 12 sectors; oil and gas, power, transport and communications, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing and other service sectors.

Transport and communications sector topped the investment line-up, followed by the manufacturing industry in the second place and real estate sector in the third place. Of 51 foreign countries and regions investing in Myanmar, Singapore put the most massive investments, followed by China and Hong Kong (SAR). MIC is prioritizing the labor-intensive businesses. In the incumbent government period, domestic and foreign projects employ over 670,000 residents, according to the DICA. Those enterprises have created over 96,000 jobs in the FY2016-2017, 110,000 jobs in the FY2017-2018, over 53,000 jobs in the 2018 mini-budget period, over 180,000 jobs in the FY2018-2019 and 210,000 jobs in the FY2019-2020 respectively. 

Source: The Global New Light of Myanmar

Construction work to resume in Yangon with new rules

by CONSTRUCTION

Construction work in Yangon, which has been halted since the third week of September, will be allowed to resume if it follows new rules, said the Yangon Region Construction Inspection Committee. “Construction projects in Yangon Region will have to report to the committee and after inspection, they will be allowed to resume if they are in compliance with the rules,” said committee Associate Secretary U Myo Myint.

The construction sites must follow 18 rules and Version 3.0 or 4.0 of Virus Prevention Instructions issued by the Ministry of Health and Sports. If the companies want inspections or have any trouble, they can contact the committee. Construction work necessary for infrastructure development is still a priority during COVID-19 and should be allowed if it complies with healthcare regulations said State Counsellor Daw Aung San Suu Kyi on October 9.

“While controlling the disease, we have to avoid an economic impact. Considerations include allowing factories to reopen. If construction work follows health rules, it can develop infrastructure in the long run and create jobs,” she said. Ten percent of construction work will be allowed after inspection by the Yangon government, the National COVID-19 Committee said on October 4. An October 10 announcement said work that meets regulations can resume with the region’s permission starting October 12.

Source: Myanmar Times

Rice price slightly rises in September

by ECONOMY

The prices of rice in export and domestic markets slightly increased in September amid the coronavirus crisis, as per data of Myanmar Rice Federation (MRF). Following the coronavirus resurgence in Myanmar, rice was highly demanded in the domestic market. The domestic retail market in September saw a rise of K1,000-1,500 per 108-pound bag compared to August’s prices, said traders from Bayintnaung market. The prices of rice last month for Pawsan varieties moved in the ranges of K38,000-50,000 per 108-pound-bag in the domestic market, while low-quality rice fetched K22,000-26,500, MRF data showed. When the volume of old rice stock has become smaller, the surging coronavirus cases in September prompted the people to make bulk-buying, making the price up by around K1,000-3,000 per bag compared with the previous month.

The residents prefer old rice to the newly harvested crop. The fresh rice will enter the market soon, so the price of new rice is likely to slide. But, the cost of old rice is expected to remain strong. There is self-sufficiency in the domestic market, and people do not need to concern over the shortage of rice. A total of 100,100 bags (108 pounds per bag) from reserved rice have been sold between 10 July and 3 October 2020, and about 701,689 bags are left to sell, MRF stated. In September, the export prices of white rice (low quality) and parboiled rice range US$385 to 500 per metric tonne depending on quality, indicating a slight increase compared with the previous months. The foreign market purchases our rice as the price is relatively lower than other Asian countries such as Thailand and Viet Nam, MRF data showed. Yet, the prices are higher than those market prices of India and Pakistan, MRF’s data showed. MRF expected to ship 2.4 million tonnes of rice, and broken rice in the Financial Year2019-2020 and the country meet the export target before the financial year-end. Between 1 October and 11 September, Myanmar sent over 413,490 metric tonnes to neighbouring countries through border trade, while over 2.117 million tonnes of rice and broken rice were shipped to foreign trade partners via maritime trade, totalling over 2.53 million tonnes.

Over the past eleven months, the value of Myanmar’s rice and broken export was estimated at US$774.89 million. A surge in rice shipping through sea trade was contributed to meeting year’s export target, MRF stated. Myanmar has shipped rice to 66 foreign markets. China is the main buyer of Myanmar rice, followed by Malaysia and Philippines. Madagascar is the fourth-largest buyer and Guinea the fifth-largest buyer of Myanmar rice. In the 2019-2020FY, Myanmar has exported broken rice mostly to Belgium, followed by China, Senegal, Indonesia and Thailand. Broken rice has been placed in 60 foreign markets. Myanmar targets to export 4 million tonnes of rice and broken rice in the current FY 2020-2021, said U Aung Than Oo. Myanmar shipped 3.6 million tonnes of rice in the FY2017-2018, which was an all-time record in rice exports. The export volume plunged to 2.3 million tonnes, in the FY2018-2019.

Source: The Global New Light of Myanmar

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Manulife launches two life insurance plans to help families in Myanmar

by SERVICES

Manulife Myanmar has launched two life insurance products designed to help families make better financial decisions and improve their financial security. Families in Myanmar can now choose Manulife Protector to safeguard their financial future and Manulife Education Life to save for a child’s education. Both plans also offer unique COVID-19 benefits. Manulife Protector is a comprehensive life insurance plan that is designed to protect the insured’s family in an unexpected and unfortunate event when the insured can no longer do so. Also, it is kind of long-term savings if the protection is not needed.

Customers can start a life insurance plan for K5,000,000 with flexible payment terms. The oldest age for life insurance is 55 years old for the 10-year plan and 45 years old for the 20-year plan. Manulife Education Life allows parents to save for their child’s future education, with insurance to take care of the child’s education needs in the unexpected and unfortunate event if they are not able to do so. It can start with a face amount of K5,000,000 and offers flexible premium payment terms, as well as the option to select Double Benefit for extra life insurance protection. Customers that purchase either plan from now until 31 December 2020 are automatically entitled to special COVID-19 benefits that cover themselves and immediate family members.

These provide a potential maximum one-time K600,000 total payouts if the life insured and/or their immediate family members (maximum four payments per family) are diagnosed with COVID-19; a further K600,000 to cover intensive care costs if the life insured is hospitalized in an ICU ward; and an extra death benefit of K6,000,000, if the life insured unfortunately passes away due to COVID-19.Manulife Protector and Manulife Education Life are now available. Customers can purchase the plans from Manulife agents. 

Source: The Global New Light of Myanmar

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Myanmar agricultural exports increase in 2019-2020 FY

by TRADING

Myanmar’s exports of farm products remarkably soared to US$3.69 billion between 1 October 2019 and 25 September 2020 in the 2019-2020 financial year from $3.2 billion in the corresponding period of the 2017-2018FY, according to the trade figures released by the Ministry of Commerce.

During the last FY2019-2020, the agro-export figures reflect an increase of $474 million against a-year ago period. Myanmar’s agricultural exports rose regardless of the impact of the coronavirus on foreign demand. In the exports sector, the agricultural industry performed the best, accounting for 22 per cent of overall exports. The chief items of export in the agricultural industry 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.

More than 100,000 acres of monsoon paddy have been cultivated under the contract farming system this year, according to Myanmar Rice Federation (MRF). The Commerce Ministry is working to help farmers deal with challenges such as high input costs, procurement of pedigree seeds, high cultivation costs, and unpredictable weather conditions. In a bid to remedy the businesses stricken by the COVID-19, the government also provided the agricultural loan of K150,000 per acre of paddy.

Source: The Global New Light of Myanmar

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India proposes oil refinery to expand presence in Myanmar energy

by INVESTMENT

India wants to build a US$6 billion oil refinery in Thanlyin, Yangon, to rival China’s investment in Myanmar’s energy sector, according to India’s Foreign Secretary Harsh Shringla and India Army Chief MM Naravane during their joint visit to Myanmar this week, India media have reported. Myanmar has yet to confirm or announce the proposal. Under a Memorandum of Understanding between Myanmar and India signed during President U Win Myint’s trip to India in Februray, the two governments had agreed to advance cooperation in the sector.

The two governments are discussing possibilities to cooperate in the downstream oil and gas sector in Myanmar. The MOEE is now also negotiating terms to purchase power to purchase power from India via cross border transmission following a bilateral meeting held on September 3 between the relevant ministries and officials, including Indian Ambassador to Myanmar Mr. Saurabh Kumar. India is raising efforts to promote its presence in Myanmar energy under its Look East and Neighbors First policies even as China expands investments in the downstream sector.

Several Chinese companies have shown interest to invest in building large oil refinery projects at the Dawei Special Economic Zone in Thanintharyi Region. China-based Yunnan Indo-Pacific Group Zhongan and CNPC East China Design Institute have purposed field surveys for a large-scale oil refinery project in the SEZ which can refine 8 million tonnes of oil a year. Meanwhile, Hong Kong New Energy Investment Holdings Limited, China Huanqiun Contracting and Engineering Co., Ltd, China Petroleun Pipeline Engineering Co., Ltd and China Energy Engineering Corporation are also interesting in building an oil refinery in Myanmar and have submitted proposals to the MOEE.

Source: Myanmar Times

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External trade exceeds $36 bln as of 25 September

by TRADING

Myanmar’s external trade between 1 October and 25 September in the 2019-2020 financial year touched a high of US$36.2 billion, an increase of $1.889 billion compared with the corresponding period of the 2018-2019FY, according to the Ministry of Commerce. During the same period in the previous FY, trade stood at $34.3 billion, according to data released by the ministry. Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government.

Myanmar has already reached total trade value target of $34 billion for the current FY, said an official from the ministry. In the current FY, both maritime and border trade recorded an increase compared with the year-ago period, with exports estimated at over $17.37 billion and imports valued at $18.8 billion. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. The Ministry of Commerce is endeavoring to boost export, enhance value-added production, reduce export barriers and provide trade financing services.

Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach the export target at US$16 billion and import at $18 billion. Myanmar’s external trade between FY2016-2017 and FY2019-2020 (as of 21 August) under the incumbent government period touched a high of US$149.67 billion, comprising exports worth $68.53 billion and imports valued $811 billion, according to the statistics released by the Ministry of Commerce.

Source: The Global New Light of Myanmar

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KBZ Bank partners Tranglo to facilitate inbound foreign remittance

by SERVICES

Myanmar’s Kanbawza (KBZ) Bank and Malaysia-based cross-border payments provider Tranglo have formed a remittance partnership to facilitate inbound money transfers directly into the accounts of KBZ Bank customers. The service, which has been approved by the Central Bank of Myanmar, allows Myanmar citizens working in Singapore, Malaysia and South Korea to send money home more cheaply and efficiently without the need to go through traditional or informal means of remitting money, which can be expensive, troublesome and risky.

Beneficiaries will receive the money in real-time in their current, savings deposit or call deposit accounts with KBZ Bank and be able to withdraw the funds via ATM or access the money through KBZPay. Those who wish to remit money to Myanmar through Tranglo can do so at Tranglo’s counters in Malaysia or the branches of its partners such as GPL and MaxMoney in Malaysia, SlidesSG in Singapore, or GME in South Korea. The maximum amount for each remittance transaction to Myanmar is the equivalent of US$5000 in the local kyat.

With the KBZ Bank Partnership, Tranglo will extend its global network – which now includes countries such as China, Indonesia and Singapore – to include Myanmar. For Tranglo, Myanmar represents a significant market in an increasingly competitive remittance industry. The World Bank estimates that more than US$3 billion was formally remitted by Myanmar migrant workers in 2019, approximately 4.6 percent of Myanmar’s GDP. This does not include the funds that are informally remitted through brokers or hand-carried back home.

Source: Myanmar Times

India, Myanmar agree to open Sittwe Port in 2021

by ECONOMY

India and Myanmar have agreed to work towards launching the Sittwe Port in Rakhine State in the first quarter of 2021, according to announcements by the Myanmar government and the Ministry of External Affairs of India. The developments were made during the visit of an Indian government delegation to Myanmar. The Sittwe Port is a major part of the Kaladan Multi-Modal Transit Transport Project funded by India. It aims to correct the Seaport of Kolkata in India to Sittwe by sea. It will then link the Sittwe seaport to Paletwa, Chin State, by inland waterway and from there connect further to Mizoram in India by road.

The project comprises three stretches which include shipping, inland water and road transport. The longest among these stretch is the shipping segment from Kolkata to the Sittwe Port. India has already completed the development of Sittwe Port and Inland Water Transport terminals at Sittwe and Paletwa. The port and inland waterway terminal operator and maintenance contractor has also been selected. Mean while, the road from Paletwa to Zorinpui in Mizoram, India is still under construction. The total project cost of the Kaladan Multi-Modal Transit Transport Project, which is expected to boost trade and commerce and contribute to development in Rakhine and Chin, is estimated at around US$484 million. Besides that project, both sides also discussed progress in the ongoing Indian-assisted infrastructure projects, including the Trialateral Highway.

The two countries have also explored new avenues of cooperation, including fresh investments in oil and gas and power, infrastructure, and pharmaceuticals. Meanwhile, both sides agreed to deepen cooperation to overcome the challenges posed by the COVID-19 pandemic, with the Indian delegation presenting 3000 vials of Remdesivir, an antiviral treatment medication. Notably, India indicated its willingness to priorities Myanmar in the sharing of viable vaccines aas and when these become available.

Source: Myanmar Times

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Fishery exports soar to over $847 mln in 2019-2020FY

by TRADING

Export earnings from the fisheries sector during the period between 1 October and 25 September in the financial year 2019-2020 reached US$847.5 million, an increase of $125.65 million from the year-ago period. The figures stood at just $721.865 million during a-year ago period. During the current financial year, the fishery exports are expected to reach a record high. Myanmar Fisheries Federation (MFF) expected to earn more than $800 million from fishery exports in the FY2019-2020, and it got a target. Myanmar exports fisheries products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union. Myanmar’s fishery exports have slightly declined over the past three months, owing to the COVID-19 impacts. However, Myanmar witnessed a large volume of exports in the post-pandemic period.

The MFF is making concerted efforts to increase fishery export earnings by developing fish farming lakes which meet international standards and adopting advanced fishing techniques. To ensure food safety, the foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates. The MFF is working with fish farmers, processors, and the Fisheries Department under the Ministry of Agriculture, Livestock, and Irrigation to develop the GAqP system. Myanmar exported 340,000 tonnes of fishery products worth $530 million in the 2013-2014FY, 330,000 tonnes worth $480 million in the 2014-2015FY, 360,000 tonnes worth $500 million in the 2015-2016FY, 430,000 tonnes worth $600 million in the 2016-2017FY, 560,000 tonnes worth $700 million in the 2017-2018FY, and over 580,000 tonnes in the 2018-2019FY.

Myanmar’s economy is more dependent on the agricultural sector to a large extent. Also, the fisheries sector contributes a lot to the national gross domestic product (GDP). Its fishery production, including shrimps and saltwater and freshwater fish, is far better than the regional countries. If the state can boost processing technology, it will contribute to the country’s economy and earn more income for those stakeholders in the supply chain, Yangon Region Fisheries Department stated.

Source: The Global New Light of Myanmar