Thanbayakan Refinery set to unveil 5 mln gallons of petrol

by ENERGY

Thanbayakan Oil Refinery under Myanma Petrochemical Enterprise (MPE) has called for a bid to sell five million gallons of petroleum.
From September to December, Thanbayakan Refinery will sell petrol to filling stations, oil distributing companies, vessel operators and entities engaged in road and bridge construction, transport business, factories and workshops, mining businesses and businesses running with the use of fuel oil. Additionally, anyone can directly purchase oil from the refinery through an official tender procedure.
One million gallons each will be sold per batch on 12 September, 3 and 24 October, 14 November and 5 December under the auction. Tender forms can be submitted to the MPE Office No 44 in Nay Pyi Taw.
The deadline for tender submission is at noon on the designated sale dates.
The tender opening is scheduled for 2 pm on that day. For further details, enquiries can be made at the MPE’s Production Division within office hours. 

Source: The Global New Light of Myanmar

Monthly Business Brief, August 2023

by Business Article

Economy

New Union Cabinet was reformed with 32 members in Union Cabinet in which Prime Minister is Senior General Min Aung Hlaing and 4 deputy prime ministers such as Vice Senior General Soe Win, General Tin Aung San (Union Minister of Ministry of Defense), General Mya Tun Oo (Union Minister of Ministry of Transports and Communications), U Win Shein (Union Minister of Ministry of Planning and Finance) and U Than Swe (Union Minister of Ministry of Foreign Affairs).

The U.S. Government has announced sanctions on three Foreign Companies such as Asia Sun Network: Asia Sun Group Co Ltd, Asia Sun Trading Co Ltd, and Cargo Link Petroleum Logistics Co Ltd and two individuals such as Khin Phyu Win and Zaw Min Tun for their roles which are doing procurement with the Government in Jet Fuel Industry on 23rd August 2023.

Banking and Finance

Singapore United Overseas Bank puts a stop to doing banking activities (i.e. restricting all incoming and outgoing payments to and from Myanmar Accounts) or cut off counterparts with Myanmar in Bank Relationship in coming 1st September 2023 which makes a bit burden in the government inaccessible to global financial system. In cutting ties, there is also curb in Visa Card and MasterCard transaction with all Myanmar Individuals and banks. Besides, all nostrum accounts at the Hong Kong branch will have been closed by September 2023.

The Central Bank of Myanmar set the reference rate at MMK 2,100 per USD while one USD is exchanged around MMK 3,700 in the grey market which is a large price difference between the reference of the CBM and the unofficial market rate. Even though August has hit the highest price up to MMK 4,000 in grey market in previous year 2022, it was MMK 3,700 in 2023. In order to control the soaring dollar in the Market, the CBM has injected a total of USD 443.8 million in 2021 and 65 million USD sold in the January 2022. Besides, the CBM revokes money changer licenses of 43 companies in half a year and revoked the licenses of 13 companies and 20 Money Changers on 14th August 2023 for being failed to comply or abide with rules and directives issued by CBM.

Foreign Currency Exchange for Petty cash, foreign currencies of USD 300 to 500, can be exchanged at the Yangon International Airport and 12 Private Banks such as KBZ bank, CB Bank PCL, MAB, AFDB, Yoma Bank, UAB, ADB, MOB, MCB, GTB and Innwa Banks in order to curb currency transactions at grey markets. Besides, the authorities also arrange three AD banks to sell Foreign Currencies every day. People can exchange seven foreign currencies such as US dollar, Euro, Singapore dollar, Baht, Ringgit, Yuan, and Yen.

Central Bank of Myanmar announces to shift to Online Gold Bar Transaction as same as the online trading of the foreign currency market (Forex Market) which has been launched since 22nd June, 2023 in order to ensure gold price stability and gold quality. In order to more stabilize the gold market and access whether registered businesses or not, The CBM instructed the supervisors to inspect whether the price manipulators make price instability at gold shops, and whether the shops have relevant work licenses and other certificates including the legal trading price and payment methods.

In order to be more facilitated in official cash transferring of Myanmar Remittance workers in Thailand to their motherland, “Dee Money Mobile Application” was jointly developed by two Myanmar-Thai Fin-Tech companies which is more reasonable transferring fee and more reliable than any other remittance ways. There will be only charged 49 baht per service fee in transferring baht equivalent to 10 Million Kyats through the application.

The new partnership between KBZ Pay, Myanmar’s pioneering and largest e-wallet and KBank’s digital banking solutions – K PLUS Mobile Banking, a leading digital banking solution provider in Thailand, partnered in offering Joint cross-border digital remittance services for Myanmar Migrant Workers in Thailand. The service has been available since 16th August 2023 and any transaction will be free of charge up to 31st October, 2023.

Trade

On 7th August 2023, sections of the Myawaddy-Kawkareik Asia highway collapsed due to a massive landslide caused by heavy rains.  A few vehicles were initially caught under the debris, but it was reported that no one was seriously injured. In the meantime, to the Ministry of Construction has constructed a temporary bridge to connect the highway within a month. Due to the COVID outbreak in 2020-21, Myanmar-Thailand Trade through Myawaddy-Mae Sot border and all trading activities has been cancelled. When it has been resumed, it is prone to temporary closures due to frequent clashes between ethnic militia and insurgents.

Zero-tariff corn exports to Thailand under a preferential tariff scheme ended on 31st August 2023 and Certificate of Origin Form D (An issue for goods eligible for preferential tariffs under CEPT scheme for ASEAN countries) since the initiation of tax exemption on February 2023. As a consequence, Thailand will impose a maximum of 73% tax to protect its domestic production. Although demand will decrease temporarily through Thailand’s growing season, it is anticipated that the market will overcome such setbacks and continue expanding steadily.

The trade agreements between Myanmar and Laos were signed on 8 May 1995, and the bilateral border re­gion management and cooperation agreement was signed on 27 March 1997 in Yangon by the foreign ministers of the two countries. The Opening Ceremony of Kenglat Border Trade Post established between Myanmar and Laos funded by the Lancang- Mekong Cooperation Special Fund 2021 was held on 26th August 2023. Even though the trade post was constructed in 2013 and finished by and temporarily opened in 2015, the opening ceremony was held in 2023. By opening the trade post, there will further increase promotion of bilateral trade between two countries.

Investment

Power Sector has been leading FDI sector among others for many years and likewise from April to July 2023, there are total USD 317 Million from two enterprises from Singapore and China. Among by Foreign investors, Singapore majorly invests in power sector with investing USD 335 Million by 4 enterprises and followed by china with USD 124 Million by 10 enterprises. The others are India, ROK, Samoa and USA.  

Pact Myanmar Microfinance shut down

Pact Global Microfinance Fund closed down in late June, after 25 years of operation. PGMF was the leading microfinance institution in Myanmar, forgiving US$156 million in loans to 890,000 borrowers before its exit. According to the Myanmar Microfinance Association, the 3 largest MFIs after PGMF were Vision Fund, Sathapana, and Dawn Microfinance. International MFIs also face difficulties in acquiring credit from abroad. This shift in climate is likely to result in the microfinance sector leaning more and more towards commercial purposes, with altruistic enterprises falling behind. 

Manufacturing

The Taninthayi Regional Government has unveiled plans to construct a 20-tonne refined cooking oil mill in a collaborative effort with local businesses. Highlighted by the growing demand for cooking oil, the refinery aims to simultaneously increase domestic production as well as reduce reliance on imports. With the local Resources of having 556,000 acres of oil palm plantations in the Region (especially in Bokpyin and Kawthaung townships), there is potential growth up to a net exporter of cooking oil on top of local consumption. However, there is an environmental issue or impact that mass production leads to further deforestation, especially in coastal region.

The Swedish garment company H&M announced that it would cease operations in Myanmar over concerns of labor abuses. An investigation revealed various cases of workplace abuse, including numerous counts of wage theft and unpaid overtime. There are 26 suppliers and 39 factories of H&M in Myanmar. According to the Myanmar Garment Manufacturers Association, Myanmar exported US$384 worth of textiles in April 2023, and the textiles industry brought in US$ 5 billion for the country in 2022. As a consequence of ceasing operations in Myanmar, there would come as a huge blow to Myanmar’s garment and textile industry, which operates on a cut, make, and pack (CMP) system. With H&M’s exit, Myanmar’s garment factories might face diminished output. There are fears that mass layoffs could occur; the majority of Myanmar’s textile workforce are women. The MGMA is encouraging to deepen the ties between the international garment brands and local factories and foreign-owned factories established in the country. MGMA is willing to work together with international brands and partners to carry out responsible businesses in Myanmar and commit to keep improving the situation of Myanmar’s garment sector

Energy

The Ministry of Electric Power has reopened tenders for investors regarding the Shwe-Li 3 Hydropower project on the Shweli River in Shan state. The tender includes implementation, power generation, maintenance, and eventual retransfer from the private to the public sector. Power projects are crucial for the current administration to address Myanmar’s energy needs. Additionally, the hydropower project is also part of their efforts to expand to renewable energy sources and thus lessen the need for fuel and gas imports. Shwe-Li 3 was previously managed by Électricité de France (EDF), a French energy company, that exited the country in early 2021. 

COVID

While COVID-19 cases in Myanmar have been lowered due to the arrival of vaccines and other preventative measures, there is still a need to remain vigilant. The Central Committee on Prevention, Control and Treatment of Coronavirus Disease has extended COVID-19 restrictions until September 30, 2023. The restrictions include social distancing requirements and a ban on public gatherings.

MoEP invites tenders for Shweli-3 Hydropower Project investment

by INVESTMENT

The Ministry of Electric Power’s Department of Hydropower Implementation has announced the initiation of tenders for interested investors in the Shweli-3 Hydropower Project situated on the Shweli River near Mongmit in Shan State (North).
Investors are welcome to participate in the tender for the Shweli-3 Hydropower Project, encompassing tasks such as ongoing implementation, power generation, maintenance, and eventual re-transfer, under the private investment IPP/BOT framework.
Tender documents can be acquired at the Department of Hydropower Implementation (Office No 27) in Nay Pyi Taw from 21 August to 11 September during working hours (10 am to 3 pm) on weekdays except for public holidays, at a cost of K500,000.
Each company is allowed to assign only one representative for obtaining the tender form, and the deadline for tender submissions is set till 1 pm on 24 September. 

Source: The Global New Light of Myanmar

Electric vehicles, motorcycles arrive at Yangon Port

by ENERGY

A total of 65 GAC Toyota bZ4X electric vehicles have been imported by Innogen Myanmar Co Ltd, along with a BYD Dolphin electric vehicle imported by Earth Renewable Energy Co Ltd, totalling 66 electric vehicles through the Yangon Port. A total of 633 Kanbo Type electric motorcycles, imported by Aung Kan Bo Motorcycle Industrial Co Ltd, have arrived at the Muse 105th-Mile trade zone. The importation of EVs and electric motorcycles is allowed with an exemption from Customs tariffs. 

Source: The Global New Light of Myanmar

Bago Region’s tourist destinations draw 146,880 visitors within seven months in 2023

by HOTEL & TOURISM

In the seven months from January to July 2023, the tourist destinations in the Bago Region attracted 146,880 local and foreign visitors, including Thai tourists, U Tin Oo, Economic Minister of Bago Region government told the Global New Light of Myanmar yesterday.
The popular tourist sites in the region are Shwemawdaw Pagoda, Shwethalyaung reclining Buddha Image, Hinthagon Pagoda, Kyaikpun Pagoda, and Kanbawzathadi Palace in the eastern Bago Region and Shwesandaw Pagoda, Shwemyethman Pagoda, Shwebonthamuni Pagoda, and Akauk Hill in the western Bago region. Visitors to the aforementioned locations increased this year compared to the same period last year.
“The seven-month period from January to July this year saw 140,110 homegrown tourists and 6,770 overseas tourists totalling 146,880, and it is 27,290 more than last year’s same period of 119,590,” U Tin Oo said.
The region saw 35 package tours that accounted for 532 visitors in the seven months.
During three weeks of August alone the region has seen a total of 28 package tours (582 visitors), he said.
The majority of overseas tourists visiting the Bago Region are from Thailand and many of them visit Shwemawdaw Pagoda, Shwethalyaung reclining Buddha Image and Kanbawzathadi Palace.

Source: The Global New Light of Myanmar

Myanmar-Laos border welcomes commissioning of Kenglat Trading Post

by TRADING

Due to the opening of the Kenglat border trade station between Myanmar and Laos with special funds from the Lancang-Mekong Cooperation, the economy between the two countries will further increase, and the friendship between the people will also improve, Union Minister for Commerce U Aung Naing Oo said during the opening ceremony of the trade station held on 26 August.

Before the opening ceremony, members of the ethnic perform traditional dances.
The trading post was implemented and built with the Lancang-Mekong Cooperation Special Fund 2021. The trade station, which was previously opened temporarily, has been upgraded to become a new one with the full characteristics of a big trading station.
The Union minister expressed his gratitude to the People’s Republic of China for providing support from the Lancang-Mekong Cooperation Special Fund for the construction of the camp buildings.
Due to the seperation of the Mekong River between the two countries, bilateral trade has not developed, but the Myanmar-Laos friendship bridge was built, and the natural barrier was overcome.
The Kenglat Trade Station was temporarily opened on 15 March 2015. The trade agreements between Myanmar and Laos were signed on 8 May 1995, and the bilateral border region management and cooperation agreement was signed in Myanmar-Lao-English languages on 27 March 1997 in Yangon by the foreign ministers of the two countries.
The construction of the Myanmar-Laos Friendship Bridge over the Mekong River began in February 2013, was completed on 25 April 2015, and opened on 9 May 2015.
After the opening ceremony of the trading post, the Union minister and the party visited the Myanmar-Laos Friendship Bridge over the Mekong River, visited the trading post in Meyan Ward of Tachilek, met employees, and discussed issues related to promoting exports and preventing illegal trade.

Source: The Global New Light of Myanmar

MGMA’s dedicated commitment to further enhance Myanmar’s garment sector

by MANUFACTURING

Following H&M Group phasing out outsourcing from Myanmar, the Myanmar Garment Manufacturers Association (MGMA) will accelerate its effort to keep improving Myanmar’s garment sector, as per the MGMA’s statement on its commitment released on 25 August.
Reuters reported on 17 August that H&M Group decided to cut ties with Myanmar suppliers.
The MGMA was disheartened to see this unexpected news as it will bring negative impacts on the livelihood of the employees and pose a higher risk of layoffs amid the challenging economic climate. Since its establishment in 2002, the MGMA has been joining hands with all the stakeholders in the industry, development agencies, international partners and valuable brands to enhance the working environment of Myanmar garment factories.
The MGMA has implemented the Voluntary Labour Compliance Assessment (VLCA) from February 2020 to evaluate the compliance of the factories in line with the national labour laws and international labour standards. To beef up the assessments and expand enrolment, the online version was launched in November 2022. More than 220 factories have accomplished the assessment so far and over 100 are still under scrutiny.
Furthermore, the MGMA is discussing constructive engagements and cooperation with the stakeholders concerned in the industry to address the livelihood and labour issues of the workers.
Additionally, the MGMA is encouraging to deepen the ties between the international garment brands and local factories and foreign-owned factories established in the country. The MGMA has experienced negative impacts from the similar withdrawals of the multinational companies in early 2000. The MGMA clearly said in the statement that it strongly believed the responsible presence of international brands in the country is the best way to improve the labour market conditions and safeguard the dignified livelihood of a hundred thousand young women employees. The responsible partnership will contribute to the improvement of the working conditions in progress, as per the statement.
Thus, MGMA is willing to work together with international brands and partners to carry out responsible businesses in Myanmar and commit to keep improving the situation of Myanmar’s garment sector. 

Source: The Global New Light of Myanmar

Businesspersons contributing to State economy to receive impetus

by ECONOMY

Economic Committee needs to persuade businesspersons to invest in agriculture, livestock and manufacturing industries directly benefiting the State and the people

Two terms of democratic government left more than US$12 billion each of trade deficiency, totalling some $25 billion. These trade deficiencies were propped with cash assistance and loans, said Chairman of the Economic Committee Chairman of the State Administration Council Prime Minister Senior General Min Aung Hlaing at the committee meeting 7/2023 at the SAC Chairman Office yesterday morning.
Amid sanctions and destructions, the Senior General recounted the government strived to promote the State economy to hug above nine per cent of GDP (+3 per cent of GDP in the 2021-22 financial year from -5.9 per cent of GDP in 2019-20 FY).
Currently, the government spends more than US$600 million on the import of cooking oil yearly. Hence, the State economic promotion fund was allotted to ensure local oil sufficiency, with a plan to increase the production of cooking oil at home in 2025 and to shape the country to become an oil exporter country.
The Senior General recounted that attempts were made to hinder the ways for the country not get deserved foreign exchange so as to face economic crises, adding that unscrupulous persons made misinformation to raise commodity prices.
The Senior General stressed the need to prioritize the businesses to have a quick win and instructed officials to take action against manipulators of the commodity prices under the procedures.
The Economic Committee needs to persuade businesspersons of investing in agriculture, livestock and manufacturing industries directly benefiting the State and the people, urging them not to do businesses which can be easy to earn incomes.
As neighbouring countries expose the operation of trade and services based on illegal remittance agencies (Hundi), action must be taken against Hundi agencies that harm the State economy whereas the trade process should be done in linking banks for monetary affairs.
The Senior General pointed out that some banks have not been operating their processes in a correct way since the current government took office. As such, it is necessary to systematically monitor the work processes of banks.
The Senior General underscored that it is necessary to implement Kyaukpyu, Dawei and Thilawa special economic zones to have quick progress to benefit the State and neighbouring and regional countries. Likewise, projects of Kyaukpyu and Dawei deep seaports must be implemented as quickly as possible.
The government must provide impetus to the businesspersons doing business to contribute to the State economy.
The Senior General pointed out that agriculture and livestock zones and industrial zones must be supervised to allocate the land plots to those who will actually run the businesses.
Regarding the tourism sector, the Senior General urged regional and state authorities to make preparations for enhancement of the inbound and outbound tourism services in the open season, and they all must review the measures of State economic promotion.
The Senior General gave guidance that relevant ministries have to cooperate with companies in building crude oil mills and oil refineries at the strategic sites for the production of cooking oil. Use of cultivable lands in other ways must be supervised under the rules and regulations.
Operating economic zones is the best to expedite the momentum of the State’s economic promotion. Officials need to restrict the process for businesspersons not to spend unnecessary payments along the trade routes.
The Senior General stressed the need to upgrade border trade camps in Kampaiti, Muse, Chinshwehaw, Tachilek and Myawady. He unveiled that the government is considering the construction of the Muse-Mandalay railway as well as the Chinshwehaw-Lashio railway. The project of railway from Kyaukpyu deep seaport to Mandalay is being implemented for the improvement of commodity flow. The Senior General instructed officials to strive for the resumption of the Tamu road contributing to the India-Myanmar-Thailand tripartite communication route.
In conclusion, the Senior General underscored that the export of commodities should not harm local consumption, urging all to try hard to secure success in the implementation of the projects.

Source: The Global New Light of Myanmar

Kawkareik- Myawady segment of Asia Highway returns to normal operations

by CONSTRUCTION

A temporary bailey bridge already built on the landslide-affected Thaton-Hpa-an-Kawkareik-Myawady section of the Asia Highway in the Kawkareik Township of Kayin State allows the passing of vehicles, according to the Ministry of Construction.
Torrential rains hit Kayin State from 1 August, causing a series of landslides section between mileposts 149 and 150 near Tawnaw waterfall on 6 and 7 August. In the incident, the landslides happened on 33-foot wide earthen layers and some 150-foot-long asphalt road section.
As such, the Ministry of Construction managed the construction of the 70-foot-long and 19-foot and 10-inch-wide steel decking Bailey bridge with the 55-tonne withstanding, starting from 10 August. The Bailey Bridge bears a 13-foot and eight-inch wide motorway. On 25 August, the bridge resumed the linkage of transport on the highway as usual.
“The incident of landslides which occurred last week absolutely halted the flow of commodity. In fact, Myawady at the Myanmar-Thai border is the most imperative camp for commodity flow and passing of vehicles. At a time when the Myawady-Kawkareik road section at the Myanmar-Thai border suspended its functions, the commodity flow of maize, rice and broken rice heading for Thailand from Myanmar was totally halted. At the same time, the imported goods such as foodstuffs from Thailand to Myanmar faced remarkable difficulties in transport. Now, the resumption of transport routes can help smooth and swift the flow of commodities. I think, it may help decline high prices of commodities at home to normalcy,” a businessperson from the UMFCCI told the Global New Light of Myanmar (GNLM).
According to the Ministry of Construction, a culvert or a bridge will be built to recover the landslide section of the highway in open season after calculating the volume and pressure of water there.

Source: The Global New Light of Myanmar

Canton Fair welcomes Myanmar entrepreneurs in Oct

by EVENT

The 134th Canton Fair or China Import and Export Fair is scheduled to be held from 15 to 31 October in Guangdong, China. Myanmar entrepreneurs have been invited to join the Canton Fair, according to the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).
Promotion Conference of the 134th Canton Fair was held at Wyndham Grand Hotel on 22 August. Mr Quyang Daobing, Economic and Commercial Counsellor of the Chinese Embassy to Myanmar and U Aye Tun, vice president of the UMFCCI gave the opening remarks respectively.
Mr Zhang Sihong, vice president of the Chinese Foreign Trade Centre, welcomed the participation of Myanmar companies as the RCEP members and developed countries will join the Canton Fair.
Additionally, a series of forums, product launches and trade talks will be included as well. This Canton Fair will help bolster Myanmar-China trade and create business opportunities.
Central executive Dr Aung Thein of the UMFCCI also shared his experiences of the Canton Fair at the conference.
Moreover, the Online Canton Fair Platform is open to manufacturers and international buyers. This fair serves as a great platform linking international suppliers with buyers and an important channel for China’s foreign trade and open policy. It is the largest trade fair in China.
The 134th Canton Fair will be held on online and offline platforms, featuring quality products with 74,000 booths. In particular, EVs, agricultural products, machines and electrical appliances, household devices and technological gadgets will be showcased. For further details, please visit www.cantonfair.org.cn.

Source: The Global New Light of Myanmar