Myanmar’s power sector leads FDI rankings over past four months

by INVESTMENT

MYANMAR drew foreign direct investments of US$467.793 million in the past four months (Apr-July) of the current financial year 2023-2024, including the expansion of capital by the existing enterprises and the power sector topped the FDI line-ups, according to the Directorate of Investment and Company Administration (DICA).The Myanmar Investment Commission gave the green light to 18 foreign projects from six countries in the past four months, according to the Directorate of Investment and Company Administration (DICA).

Those enterprises from nine foreign countries made foreign investments and also expanded their businesses. Singapore is the top source of FDI so far, investing $335.162 million from four enterprises, followed by China with $124.079 million from ten enterprises. One enterprise each from India, Republic of Korea, Samoa and the USA also made investments this year. The existing enterprises from China (Taipei), China, Hong Kong SAR, Singapore and the UK also increased foreign investments, the statistics released by the DICA indicated. “Myanmar’s power sector attracted $317 million in the past four months. It accounts for the largest share of FDIs in Myanmar this financial year,” said U Thet Paing, director of the DICA.

The agriculture sector drew $1 million from one enterprise. Two enterprises put $317.178 million in the power sector. The manufacturing sector received $48.745 million of FDI, while the transport and communication sector attracted $77.82 million. Over $23 million of FDI was pumped into the livestock and fisheries sector as well. There are a total of 2,404 permitted foreign projects from 52 countries under the Myanmar Investment Law and the Special Economic Zone Law as of the end of July 2023 and Singapore, China and Thailand are the leading investors in the country.

Source: The Global New Light of Myanmar

Singapore leads Myanmar’s FDI rankings over last 4 months

by INVESTMENT

Singapore ranked first in the foreign direct investment line-up in the past four months (April-July) of the current financial year 2023-2024, the Directorate of Investment and Company Administration’s statistics showed.
Four Singapore-listed enterprises pumped in FDI of over US$335 million into the country in the past four months.
Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors.
China stood as the second largest investor this FY with an estimated capital of over $124 million by 10 enterprises and the existing ones. China is ranked third in the line-up with more than $105 million from 36 businesses and the existing ones.
One enterprise each from India, Republic of Korea, Samoa and the USA also made investments this year. The existing enterprises from China (Taipei), China, Hong Kong SAR, Singapore and the UK also increased foreign investments, the statistics released by the DICA indicated.
Myanmar attracted foreign direct investments of $467.793 million in the past four months, including the expansion of capital by the existing enterprises and the power sector drew the highest FDI. The Myanmar Investment Commission gave the green light to 18 foreign projects from six countries in the past four months, as per the DICA.
The agriculture sector drew $1 million from one enterprise. Two enterprises put $317.178 million in the power sector. The manufacturing sector received $48.745 million of FDI, while the transport and communications sector attracted $77.82 million. Over $23 million of FDI was pumped into the livestock and fisheries sector as well.Singapore stood as the largest foreign investor in Myanmar in the previous years, pulling in the FDI of $1.158 billion in the 2022-2023 FY, $297 million in the 2021-2022 mini-budget period (Oct-Mar), $1.85 billion in the FY 2019-2020, $2.4 billion in the FY 2018-2019, $724.4 million in the mini-budget period (April-September, 2018), $2.16 billion in the 2017-2018 FY, $3.8 billion in the 2016-2017 FY, $4.25 billion in the 2015-2016 FY, $4.29 billion in the 2014-2015 FY, $2.3 billion in the 2013-2014 FY and $418 million in the 2012-2013 FY respectively.
Additionally, Singapore emerged as the second largest foreign investor in the Thilawa Special Economic Zone, after a top investor, Japan.

Source: The Global New Light of Myanmar

MoH Minister tours China-aided Myanmar CDC construction

by CONSTRUCTION

During the visit, officials from the Department of Public Health and CCCC Third Harbouring Co Ltd, responsible for the project’s construction, provided updates on the progress, upcoming stages, and requirements of the project. Director-General of the Department of Public Health Dr Myint Myint Than, shared insights about the installation and utilization of necessary laboratory equipment and the upcoming training of health workers in China.

The Union minister offered instructions, discussed needs, and inspected the construction sites. A fruit basket was presented to officials from CCCC Third Harbouring Co Ltd to mark the occasion. The Myanmar CDC, valued at approximately 400 million yuan, stands as an international disease control hub. It includes a three-storey disease control building with advanced laboratories and systems, as well as a health training building and an administrative building.

The centre can train around 400 individuals, a batch and the health workers assigned to Myanmar CDC will also undergo training in China.

Source: The Global New Light of Myanmar

Forex trading in official markets aims to stabilize commodity prices

by ECONOMY

IN a proactive move to curb soaring commodity prices, Myanmar is actively engaging in foreign currency
trading within legal markets. This initiative is accompanied by a strategic implementation of interest rate and monetary policies, aligned with the nation’s macroeconomic landscape, as highlighted by Central Bank of Myanmar Governor Daw Than Than Swe. CBM Governor Daw Than Than Swe articulated these measures during a recent meeting held in Nay Pyi Taw’s Office No 55 yesterday. The gathering served as a platform to elucidate and deliberate on issues pertaining to foreign trade payments.

Intending to streamline financial transactions and cater to the market’s foreign currency demand, the
Central Bank of Myanmar has taken several steps to ensure exchange rate stability. These measures
encompass the sale of US dollars to entities involved in the motor oil, edible oil, and import sectors through private banks. Furthermore, the institution is harnessing the Back-to- Back SWAP Facility to meet the escalating demand for US dollars.

In a bid to enhance accessibility for importers seeking foreign currency, the CBM Governor underscored
the introduction of an online trading system on 22 June 2023. She also emphasized the establishment of
transparent criteria for fair online trade, reassuring that transactions meeting these criteria will be facilitated. Addressing concerns surrounding foreign exchange rates, she stressed the need for vigilance against the influence of online and social media narratives that might drive unwarranted price hikes and illegal activities, which are not grounded in market fundamentals and data. Subsequently, the delegates at the meeting placed significant emphasis on active participation in online trading, devising comprehensive strategies to stabilize commodity prices, and addressing situations where goods prices surge due to illicit trading practices. The discussions also revolved around topics such as facilitating access to export earnings under stipulated conditions, bolstering trade financing, curbing smuggling, and eradicating illegal trade, all aimed at achieving price stability in the commodities market.

Source: The Global New Light of Myanmar

Kampaiti border trade surpasses US$55 million mark as of 11 Aug

by TRADING

Myanmar’s Kampaiti border with the neighbouring country China amounted to US$55.29 million as of 11 August in the current financial year 2023-2024 beginning 1 April, comprising exports worth $47.139 million and imports worth $8.152 million. The figure increased from $39.75 million recorded in the corresponding period last FY 2022-2023.
The Kampaiti border aims to achieve a trade target of $3 million in August. About $1.088 million worth of trade was carried out at the Kampaiti border as of the second week of August, accounting for 36.27 per cent of the trade target.
Tissue-culture bananas were mainly exported and construction materials, intermediate goods, consumer goods, clothes and fruits were imported.
In the past two weeks of August, the Kampaiti border saw exports of 1,092 tonnes of tissue-culture bananas with an estimated value of $375,101. It imported 1,264 tonnes of compound fertilizer, 19 tonnes of hollow pipe, 14.6 tonnes of iron pipe, 24 tonnes of iron sheet in coil, 51 tonnes of artificial grass, 10.2 tonnes of apple and 7,400 tonnes of ceramic tile plain, apple, tangerine, clothes, construction materials and capital goods.
There is no freight forwarder service running in the Kampaiti border. Companies transport with their own trucks. There are no landslides or road blockages along the Kampaiti-Waingmaw-Myitkyina trade channel and trucks are regularly seen flowing in and out of the Kampaiti border post. 

Source: The Global New Light of Myanmar

Myanmar banks facilitate petty cash exchange for outbound travellers

by SERVICES

The Central Bank of Myanmar has reported that banks with authorized dealer licences (AD-licensed banks) have disbursed petty cash ranging from US$300 to US$500 to each of 2,956 individuals who are preparing to travel abroad. CB Bank, A Bank, and Tun Commercial Bank have communicated through their social media platforms that individuals planning to work, study, or undergo medical treatment abroad can now acquire petty cash in foreign currencies.

With the directive from CBM, the AD-licensed banks have been instructed to provide individuals with petty cash between US$300 and US$500 per person (or its equivalent in other foreign currencies), based on the submission of requisite documents following the specific purpose of their overseas travel.
This initiative was launched on 31 May, and as of 8 August, a total of US$789,806 has been distributed to 2,603 individuals. Furthermore, 2,454,550 Thai baht has been provided to 301 persons, 9,861 Singapore dollars to 27 individuals, 16,738 Malaysian ringgit to 20 individuals, and 1,450 euros to five individuals.
Transactions have been carried out at rates of K2,500 or K2,600 per USD, and K75 to K85 per Thai baht. These rates vary based on the daily average exchange rate prevalent in the market.

Participating in this effort are CB Bank PCL (CB), KBZ Bank, AYA Bank PCL (AYA), Ayeyawady Farmers Development Bank (A Bank), Myanma Apex Bank (MAB), Yoma Bank (YOMA), UAB Bank (UAB), Asia Green Development Bank (AGD), Myanmar Oriental Bank (MOB), Global Treasure Bank (GTB), Tun Commercial Bank (TCB), Shwe Bank, First Private Bank (FPB), Innwa Bank Limited (Innwa), and Myanmar Citizens Bank (MCB). These banks have publicly disclosed the available counters for purchasing foreign currency on their respective websites and Facebook pages. 

Source: The Global New Light of Myanmar

11 out of 19 domestic cement plants operate as usual

by CONSTRUCTION

Although the annual domestic demand for cement is about 9.9 million tonnes, the cement production volume of the 11 currently operating factories can meet the demand, according to the Ministry of Industry.
Domestically, there are 19 cement plants operated through the public-private joint ventures, eight of which are undergoing mechanical improvements and currently 11 factories are manufacturing cement.
These plants produced 8,123,570 tonnes of cement in the financial year 2022-2023 and were able to meet domestic cement demand, according to the No 2 Heavy Industries Enterprise.
Some cement plants have been temporarily shut down due to operational changes and new equipment expansion.
It can be produced locally to meet the annual cement demand. Among 19 domestic cement plants, some plants are equipped with five machine lines capable of producing 5,000 tonnes of cement or more, nine machine lines capable of producing between 1,000 tonnes and 5,000 tonnes and 13 machine lines capable of producing less than 1,000 tonnes.
Among three State-owned cement plants — No 31 Heavy Industry (Thayet) and No 32 Heavy Industry (Kyangin) — had to stop production due to high energy consumption, high production costs and difficulty in competing in the market.
According to the information, government-private partnerships will also be implemented for operating the aforesaid two plants.

Source: The Global New Light of Myanmar

CBM announces shift to online gold bar trading, similar to forex market

by TRADING

IT should launch online trading for gold bar transactions just like the online trading of the foreign currency market, said Daw Than Than Swe, governor of the Central Bank of Myanmar during the meeting with the chairman and secretary of the Monitoring and Steering Committee on Gold and Currency Market and departmental officials yesterday.

She also mentioned the need to allow those who hold legal certificates for following the mechanisms of meeting the standard for gold, quality, weight and pricing to participate in online trading to ensure gold price stability.

She then instructed the supervisors to inspect whether the price manipulators make price instability at gold shops, and whether the shops have relevant work licences and other certificates including the legal trading price and payment methods.

The CBM launched online trading programmes in the international currency market on 22 June. It sold US$6.89 million at K2,920/2,922 per dollar to six banks on that day and also announced that the online sale prices were illegal.

Moreover, the CBM reviewed the lists of buyers and sellers of foreign currency submitted by AD-licensed banks and sale listings between the banks and customers and also negotiated with the banks regarding the exchange rate and amounts.

Then, the attendees reported on the proper situation concerning the online trading of CBM for real estate agents and car brokers in addition to the foreign currency and gold market to make official transactions by laying down rules and regulations and the plans to inspect as per the Anti-Corruption Law.

Source: The Global New Light of Myanmar

Two weeks left to utilize Thailand’s Form D benefits for corn exports

by TRADING

With only over two weeks remaining to export Myanmar’s corn to Thailand under Form D customs tariff benefit, the corn market falters, traders explained.
Thailand gives the go-ahead to corn imports under zero tariff (with Form-D), between 1 February and 31 August. However, Thailand imposed a maximum tax rate of 73 per cent on corn imports to protect the rights of their growers if the corn is imported during the corn season of Thailand. There are only 20 days remaining to enjoy that customs benefit.
Additionally, torrential rain on 7 August destroyed some road sections to Myawady, a major border point between Myanmar and Thailand. Therefore, landslides blocked the corn’s trade route and repair works are being undertaken. As a result of this, the market is slowing down.
The prevailing prices of corn stand at K1,200-1,220 per viss in the domestic market while the FOB corn prices were US$290-310 per tonne, according to Yangon Region Chambers of Commerce and Industry (Bayintnaung Commodity Depot).
Myanmar conveys corn to China and Thailand through the border and also sends corn to China, India, Vietnam and the Philippines by maritime shipping presently, according to the Myanmar Corn Industrial Association.
China is purchasing Myanmar’s corn through cross-border trade under the opium substitution programme. Legitimate corn trade between Myanmar and China commenced at the end of 2022. A total of 112 companies have been given the go-ahead for corn exports.
Myanmar exported more than two million tonnes of corn to foreign trade in 2022 corn season. The majority of them were sent to Thailand and the remaining went to China, India, the Philippines and VietNam.
More than two million tonnes of corn are expected to be shipped to foreign trade partners in the 2023 corn season, said U Min Khaing, patron of the Myanmar Corn Industrial Association.
At present, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons — winter, summer and monsoon. The country produces 2.5-3 million tonnes of corn every year. 

Source: The Global New Light of Myanmar

“Dee Money” App facilitates seamless cash transfers for Myanmar citizens in Thailand

by SERVICES

The Myanmar Embassy to Thailand has announced that Dee Money mobile application has been
jointly established by two Myanmar-Thai non-bank financial service companies as an official money transfer service so that Myanmar nationals in Thailand will not be deceived when transferring money to their motherland. The embassy stated that Myanmar nationals in Thailand are being exploited while sending money back to Myanmar due to various reasons, as well as facing high transfer fees and a lack of guarantees daily.

If people transfer the baht currency equivalent to K10 million through the Dee Money mobile application, they will only be charged 49 baht per service fee. According to the embassy statement, Dee Money App is a safe and secure money transfer service for all Myanmar citizens in Thailand. Currently, Thai-Myanmar exchange rates are not stable and the value of the kyat is falling, reaching over K100 per Thai baht, as per the prevailing conditions in the forex market.

Source: The Global New Light of Myanmar