Sesame prices possibly remain higher amidst China’s strong demand
The prices of sesame seeds are expected to remain higher on the back of strong demand from China even when the fresh sesame will be harvested in September. The prevailing price of sesame is pegged at K160,000-210,000 per bag depending on quality. The price significantly rose as against that in early July. The price is likely to fluctuate around K200,000 per bag during the harvest time. As the sesame stockpile is thin, there is no way of the price drop in the coming weeks. This year, high sesame producing regions of Myanmar (Magway, Mandalay and Sagaing regions) experienced low yield due to drought impacts. During the meantime, China high demand hiked the prices.
Myanmar increasingly sends sesame seeds to China market. The price fluctuates a bit. The gradual increase in sesame prices since last week of July has been attributed to high demand by China when the drought reduced crop yield in the country. The various varieties of sesame are priced good, especially black and white sesame varieties. Myanmar exports 90 per cent of sesame production to foreign markets. China is the leading 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. 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 colored sesame seeds from the country.
The number of sesame acreages has increased in the country. Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the primary 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 tonnes, worth $130 million, in the 2015-2016 financial years, 100,000 tonnes, worth $145 million, in 2016-2017FY; and, 120,000 tonnes, worth $147 million, in 2017-2018FY.
Source: The Global New Light of Myanmar
CMP businesses-imported raw materials plummet to $1.87 bln as of 7 August
Imports of raw materials by CMP businesses have been valued at US$1.87 billion over the past ten months beginning in October in the 2019-2020 financial years, which plunged from $2 billion registered in the corresponding period of last financial year. Myanmar’s manufacturing sector is mostly concentrated in garment and textiles produced on the cutting, making, and packing basis, and it contributes to the country’s GDP to a certain extent.At present, some CMP garment factories have shut down on the reason for the lack of raw materials due to the coronavirus negative impacts, leaving thousands of workers unemployed.
The pandemic badly batters the labour-intensive enterprises, said an official of the Directorate of Investment and Company Administration (DICA). To deal with the shortage of raw materials for the CMP garment factories in Myanmar, the Ministry of Commerce, the Myanmar Garment Manufacturers Association and the Chinese Embassy in Myanmar, the China Enterprise Chamber of Commerce in Myanmar (CECCM) have jointly imported raw materials through border trade channels and airlines.
However, import values of raw materials by CMP businesses dropped by $140.49 million compared with a year-ago period. The CMP garment sector, which contributes to 30 per cent of Myanmar’s export sector, is facing hardships because of the cancellation of order from the European countries and suspension of the trade by western countries amid the coronavirus pandemic. It can harm the export sector to a certain extent, highlighted the businesspersons. The CMP industry has emerged as very promising in the export sector.
The value of CMP exports was just $850 million in the 2015-2016 budget year, but it tripled within two years to reach $2.5 billion in the 2017-2018FY. During the last financial year 2018-2019, incomes from garment exports were over $1 billion higher than the previous budget year. Since an outbreak like COVID 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 sources, including weaving, knitting, dyeing, and sewing factories. Japan is the largest market for Myanmar apparel, followed by the European Union. The MGMA has more than 500 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
Myanmar-EU trade exceeds $2.57 bln in 9 months
Myanmar’s trade with members of the European Union (EU), during the first nine months of the current financial year 2019-2020, reached over US$2.57 billion, according to the statistics released by the Ministry of Commerce. Myanmar’s export to the EU surpassed its import, with $1.845 billion worth of export and $726.147 million valued import.Beyond regional trade regime, Myanmar has established trade links with EU members. Germany is the biggest trade partner in EU with the most considerable trade value, of $564.993 million with Myanmar, followed by Italy in second place, with about $349.166 million.
Spain was listed in third place with trade valued at $344.092 million, while The Netherlands stood at fourth place with an estimated trade value of $325.755 million. Myanmar’s trade with France reached about $243.332 million.The value of bilateral trade with Belgium was $201.416 million, while that with Poland was $133.847 million. Businesses with Denmark, Sweden and Finland, brought in more than $75 million each. Trade values with Austria, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Ireland, Latvia, Lithuania, Luxembourg, Malta, Portugal, Romania, Slovakia and Slovenia was less than $50 million each.The main export items are rice, pulses, tea leaf, coffee, garments on Cut-Make-Pack basis and fisheries.
Meanwhile, Myanmar imports machinery, data-processing equipment, electrical and optical goods, chemical products, motor vehicles and parts and pharmaceutical products, cosmetic, food and beverages and consumer goods. The CMP garment sector is now encountering hardships because of the cancellation of order from the European countries and suspension of the trade by western nations during the coronavirus crisis.Myanmar reinstated EU’s Generalized Scheme of Preference starting from 19 July 2013. Myanmar can enjoy GSP for export of fisheries, rice, pulses, agro products, bamboo and rattan finished products, forestry products, apparels and finished industrial goods. Nevertheless, the EU imposed a three-year tariff on Indica rice (long-grain rice) imported from Myanmar and Cambodia starting from 18 January 2019.
Source: The Global New Light of Myanmar
Tourist arrival drops in Myanmar by 65 pc as of July 2020
The tourist arrival in Myanmar has dropped by 65 per cent from January to July 2020 because of the global coronavirus outbreak, according to the data released by the Ministry of Hotels and Tourism.Myanmar received a total of 852,432 foreign visitors in the first seven months of 2020, a decreaseof 1.6 million visitors. The same period of last year, the number of tourists who entered the country stood at 2.4 million, according to the Ministry of Hotels and Tourism.
As of July 2020, a total of 324,329 tourists arrived in Myanmar via the international airports, 889 tourists came to the country via cruise liners, and 40,415 tourists entered through land borders with visa. Besides, 486,799 tourists entered Myanmar via the border crosses.The number of tourist arrival by flights declined by 67 per cent, by ships declined by 85 per cent, by land borders with visa declined by 43 per cent and by cross-border passes declined by 66 percent.Last years, the majority of visitors were from China followed by Thailand, Japan, South Korea, Singapore and Viet Nam. Citizens of the United States, France, Britain, Germany, Italy and Spain also visited Myanmar.
This year, the foreign visitors stopped travelling and lost 72 per cent from China, 63 per cent from Thailand, 72 per cent from South Korea, 72 per cent from Singapore and 68 per cent from Viet Nam.Tourists have cancelled their trips, and the national airline flights have also suspended their operations as the coronavirus has spread around the world. The countries have also denied visas to the tourists.Myanmar tourism sector like that of other countries around the world has been severely affected by the pandemic. Myanmar welcomed 4.6 million tourists in 2015, 2.91 million in 2016, 3.44 million in 2017, 3.55 million in 2018, and 4.4 million in 2019.
Source: The Global New Light of Myanmar
UMFCCI Webinar Series
Title: New Beginnings through Renewed Partnerships Episode (11)
Date: 27 August 2020 , 4 P.M
Speaker:
- U Khin Maung Win ( President, American Chamber of Commerce Myanmar)
- Mr. Peter Beynon ( Chairman, British Chamber of Commerce of Myanmar)
- Ms. Sarah Lubeigt ( President, French Myanmar Chamber of Commerce and Industry)
Moderator: U Moe Kyaw (CEC, UMFCCI)
Contact address: pr@umfcci.com.mm
Organizer: UMFCCI
Pressure eases on Myanmar inflation due to declining consumer demand
Declining consumer spending and demand as a result of COVID-19 has suppressed inflation levels in Myanmar. Inflationary pressure first showed signs of easing in March, after the first cases of the coronavirus were reported in Myanmar. Inflation has continued to decline over the past three months, settling at 7.9 percent in June. The trend of falling inflation is similar to the rest of the world. Consumers all over the world and in Myanmar are spending less due to COVID-19 restrictions. Domestic consumer demand is falling and this is resulting in softer inflation.
Inflation in Myanmar had in fact been on a steady rise before the pandemic. Local businesses have suffered as a result of poor consumer demand. Due to COVID-19, the majority of Myanmar firms have experienced lower sales and cash flow shortages, resulting in reduced access to credit needed to support operations. The survey also revealed that 16 percent of firms had temporarily closed their operations for an average of eight weeks as a results of COVID-19.
As a result, Myanmar’s inflation is forecast to fall further this year and remain at around 6pc until next year. Meanwhile, GDP growth is forecast to drop from 6.8 pc in fiscal 2018-19 to just 1.8pc in the current fiscal year. The World Bank’s forecasts are more dire, with GDP expected to slump to just 0.5pc last year. However, if the domestic spread of the coronavirus is brought under control and the global economy recovers swiftly, GDP could recover as soon as next year, reaching 6pc according to ADB and 7.2pc according to the World Bank.
Source: Myanmar Times
Myanmar’s border trade with neighboring countries sees US$ 8.6 billion
Myanmar’s border trade with neighbouring countries reached US$8.6 billion as of late July in the current financial year, an increase of over US$280 million compared to the same period of last financial year. Myanmar’s border trade with its neighbours was US$8.3 billion in the same period of financial year 2018-2019. Myanmar’s export volume through its borders fetched US$5.8 billion while the country’s import reached over US$2.7 billion. Muse border saw the largest volume and value of Myanmar’s total border trade, with an estimated value of over US$5.4 billion, followed by Myawady with US$858 million and Chinshwehaw with US$554 million during that period. The Sino-Myanmar border trade through all five border crossings has registered over US$4.7 billion in the current financial year, a decrease of US$123.5 million compared to the same period of last financial year, according to the ministry’s statistics.
Border trade with China was valued at US$3.89 billion through Muse border gate in this FY, US$123.35 million via Lweje, US$430.7 million via Chinshwehaw, US$263 million Myawady Trade Zone is Myanmar’s second largest border trading post. The decline in bilateral trade is attributed to the suspension and delay of some commodities amid the tight security measures of coronavirus. China has been beefing up border control measures to curb the spread of the coronavirus infection. China’s investment in Myanmar during the period from 1988 to date was valued at more than US$20 billion which is equivalent to about 26 per cent of total FDI in the country. The trade volume between Myanmar and Thailand has reached US$2.71 billion in total, a decrease of US$103.9 million compared to the same period of last year, according to ministry. The bilateral border trade saw US$2.82 billion in last year. Myanmar-Thailand border trade totalled US$2.711 billion between 1 October last year and early this year, which included US$1.95 billion in exports and US$757 million in imports. The Hteekhee border recorded the highest trade value of US$1.35 billion, followed by Myawady with US$820 million and Kawthoung with US$299 million. The country mainly conducts border trade with Thailand via seven borders Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Mese checkpoints. Meanwhile, Myanmar-India border trade is down by over 40% for the current financial year due to the temporary closure of border posts amid the ongoing COVID-19 pandemic. The trade value went down from US$128 million to US$76 million for the same period, a decrease of 40% compared to the same period of last financial year. The two countries conduct border trade mainly through the Tamu, Reed, Thantlang, and Kenglap cross-border trade camps, while a major part of bilateral trade is carried out via the sea.
Myanmar-Bangladesh bilateral trade via border checkpoints was valued at over US$747.63 million as of 26 June in the current 2019-2020 financial year, an increase of US$730 million from the corresponding period of last
year. When compared with last FY, this FY saw a significant surge in the value of exports by US$427.42 million while the bilateral imports rose by US$302.96 million. Between 1 October last year and 26 June this year, Myanmar transported commodities worth US$443.4 million to Bangladesh and imported goods valued at over US$304.2 million. Myanmar exports goods to Bangladesh through both maritime and land routes. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods and others while capital goods, intermediate goods to neighbouring countries and consumer goods, machinery and medicine are imported to the country. Around 20 percent of Myanmar’s total trade is conducted through its border crossings and the remaining 80 percent is done by sea route.
Source: The Global New Light of Myanmar
SEZs rake in over $116 mln investments as of July-end
Foreign investments of US$116.557 million have flowed into the Special Economic Zones (SEZs), under the Special Economic Zone Law, as of July-end in the 2019-2020 financial year since October 2019, according to the figures released by the Directorate of Investment and Company Administration (DICA). Since its establishment, over 110 enterprises from 18 countries and four local businesses have ploughed in nearly $2 billion as of July-end, 2020 in the zones, the investment source indicated. While the manufacturing sector has absorbed the largest share of foreign investments, FDI has also flowed into the trading, other services, transport and logistics, real estate, and hotel sectors.
Japan has topped the list of foreign investors so far, accounting for over 34 per cent of the overall investment, followed by Singapore and Thailand. FDI has also flowed into the SEZs from the Republic of Korea, Hong Kong, the UK, Australia, the UAE, Malaysia, Austria, China (Taipei), Panama, China, Brunei, Viet Nam, France, Switzerland, and the Netherlands. Myanmar is currently implementing three Special Economic Zones — Thilawa, Kyaukpyu, and Dawei. Out of the three, Thilawa is leading to better infrastructure and successful businesses. At present, more than 80 businesses are operating in the Thilawa SEZ. The SEZ has employed more than 12,000 permanent workers, including construction workers, according to the management committee. More than 60 per cent of businesses in Thilawa is domestic- oriented manufacturing enterprises. In comparison, 40 percent are export-oriented manufacturers, according to a press statement issued by Myanmar Thilawa SEZ Holdings Public Ltd in June 2019.
A company exporting at least 75 per cent of the production in value is registered as a Free Zone investor. It is exempt from paying corporate tax for seven years from the time it starts commercial operations. Companies such as logistics, which support export-oriented manufacturing, can also be listed as free zone companies. Domestic-oriented manufacturing companies are regarded as promotion zone companies, and they are eligible for a five-year holiday on corporate tax. There are other tax incentives for the free zone and promotion zone investors on the importation of capital goods, raw materials and merchandise, and consigned products and vehicles.
Source: The Global New Light of Myanmar
New G Bank branch opens in Myawady border town
As new banking services expand in Myanmar’s economic sector, Glory Farmer Development Bank, or G Bank for short, opened a new branch office in Myawady Township, Kayin State, on 7 August. With the new branch in Ward 4, Bamar Su 8 in Myawady and its headquarters on Yuzana Road in Bayint Naung Warehouse, Yangon, G Bank offers standard banking services such as depositing or withdrawing cash, domestic and payment orders during its operating hours and is striving to extend its reach to other prominent cities across the nation.
G Bank is offering a maximum interest rate of 8.7% in a fixed deposit account with a minimum tenure of one year to commemorate the opening of its Myawady branch in addition to other souvenirs.G Bank aims to offer balanced, outstanding services to all its customers in line with its code of conduct and integrity while keeping astride with technological developments to ensure banking services are accessible to all people.
G Bank opened its first branch in Monywa, Sagaing Region, in the month of September in 2018 and bases its mission on developing the agricultural sector, which can be regarded as the lifeblood of the nation.G Bank’s objectives also include making banking services accessible to everyone through the use of technology while incorporating ingenuity, responsibility, accountability, ethics and rules and regulations issued by the Central Bank of Myanmar in its services.
Source: The Global New Light of Myanmar