Banking transactions for imports on Myanmar-China border to commence 1 August

by ECONOMY

BANKING transactions for imports in the Myanmar-China border will be started from 1 August 2023,
according to a news bulletin 10/2023 dated 23 June 2023 issued by the Trade Department under the Ministry of Commerce. Initially, the banking transaction system was exercised on 1 November 2022 at the Myanmar-Thailand border points. And, this system will proceed to the Myanmar-China border from 1 August 2023. The importers must use the banking system with foreign currency (Yuan) purchased from local banks or export earnings deposited in local bank accounts, the CBM directed. Additionally, companies need to show export earnings or income statements, credit advice or bank statements while seeking a licence from the department.
The import licence will be granted for the amount not exceeding the account balance after screening the bank statement or export earnings or foreign currency purchase records. Importers who have already sought import licences are required to bring in the goods by 31 August 2023. If they failed to import before the deadline, their import licence will get cancelled. Regarding export earnings and income statements, the bank deposits put in the account after 1 January 2023 can be used. Exporting companies can use their earnings for imports or transfer them to other entities for import purposes at border checkpoints.

Source: The Global New Light of Myanmar

Yangon port admits larger container ships than before

by LOGISTICS

MYANMA Port Authority under the Ministry of Transport and Communications discovered a new approach channel, the Kings Bank Channel in the Yangon port area and accelerated the sandbank dredging processes accepting larger-seized international vessels. As there is a better waterway, it can admit larger-sized vessels than before at the jetties in the Yangon port area.

Meanwhile, the MV SITC Zhaoming container ship with 185.99 metres of LOA, 35.25 metres of Beam, 29,232 tonnes of GRT and a capacity of 2,698 TEU under STIC Shipping Line arrived at the Asia World Port Terminal for the first time at 9:30 am on 22 June. That vessel is one of the largest container vessels ever docked at AWPT Port. It docked safely under the supervision of the Chief Executive Officer of Myanma Port Authority. The MV ITC Zhaoming container ship left Myanmar on 23 June.

Source: The Global New Light of Myanmar

Non-automatic licensing system will practice for importers: Ministry of Commerce

by TRADING

The Ministry of Commerce has announced that all import license applications for imports from the border will be allowed only through the non-automatic licensing system, as it is necessary to verify export income and other income evidences.

Seeking Import licenses through automatic licensing and non-automatic licensing systems on Myanmar Tradenet 2.0 platform is available from 22 June, according to the news bulletin (9/2023) released by the Trade Department under the Ministry of Commerce.

Having digitized the licensing system, import licensing for certain lines (1,525 lines) via seaborne trade will be automatically passed on to the system. According to that notification of the Ministry of Commerce, for seaborne trade, commodities lines that did not require import licenses before are mandatory for import licenses under the non-automatic import licensing process after 60 days from June 22.

Additionally, for imports via the border, only a non-automatic licensing system will be exercised amid the scrutiny of export earnings and other income documents. Those commodities that did not need import licenses before will be allowed to be imported with licenses after 30 days from today.

Total trade volume of Myanmar from April to March 2022-2023 FY is U.S $ 33.925 billion where last year trade volume was U.S $ 30.351 billion.  During 2022-2023 FY, it earned more than U.S $ 3.573 billion from foreign trade in compare with the same period last year.

Source: Daily Eleven

CBM: exchange rate determined on forex online trading platform

by SERVICES

THE Central Bank of Myanmar (CBM) notified that the exchange rate transacted on the online trading
platform is the actual currency value and the US dollar was exchanged at over K2,900 on 22 June when the online trading platform started. In 2013, the CBM implemented a forex market for interbank transactions among authorized dealers and bank-customer transactions for foreign exchange market development. International forex trading platform (Refinitiv) helped the authorized dealers deliver a complete function for inter-bank transactions. The CBM has been managing online trading for bank-customer transactions. Starting on 22 June, the CBM led the online trading platform for bank-customer transactions and transactions between clients.

The total turnover for the trading of the six authorized banks was US$6.89 million with an exchange rate of K2,920. Furthermore, the CBM also provided USD SWAP Financing and sold 1.2 million dollars. The exchange rate transacted on online trading platforms determines the actual value and the rate in shady dealings and posted on social media platforms are just grey market rates, the CBM warned. The CBM will provide SWAP Financing for the essential goods in need and intervene in the forex market, according to the notification issued on 21 June 2023.

Source: The Global New Light of Myanmar

MADB to provide maximum loan ofK70 mln to individual farmers

by SERVICES

The Myanma Agriculture Development Bank (MADB) made an announcement on 14 June stating that it will offer loans of up to K70 million to individual farmers who require financial support for agricultural and rural development purposes.
The loan amount has been capped at a maximum of K70 million per farmer, with an additional provision that each group of farmers can receive a maximum loan of K500 million. These two-step loans, issued by MADB, come with an annual interest rate of five per cent and are intended to facilitate plantation activities and rural development.
The loans will be disbursed to farmers for the purchase of various types of farming machinery and agricultural equipment, as well as for the construction and maintenance of factories and warehouses.
Repayment terms require farmers to pay back the loan three times over a span of three years for tractors and hand tractors, while for other equipment, repayment is set at five times over a period of five years.
Interested farmers can obtain detailed information regarding the loan terms, conditions, and the necessary guarantee requirements by contacting the nearest Myanma Agriculture Development Banks or regional banks. 

Source: The Global New Light of Myanmar

Top tourist arrivals inMyanmar: Thailand, Viet Nam,and Mexico lead the way

by HOTEL & TOURISM

According to the Directorate of Hotels and Tourism, Myanmar welcomes the highest number of tourists from Thailand, Viet Nam, and Mexico primarily through the Yangon International Airport. From March to May 2023, a total of 2,695 foreign tourists arrived in Myanmar via this airport, as stated by the report.
The majority of visitors originated from Thailand, Viet Nam, and Mexico, with additional tourists hailing from countries such as Indonesia, Spain, the United States, and the United Kingdom, among others.
The statistics reveal that 822 foreigners visited Myanmar in March, followed by 612 in April, and 1,261 in May. This data demonstrates the steady influx of tourists to the country during this period.

Source: The Global New Light of Myanmar

Traders need to seek registration for rice storage by 26 June

by TRADING

The wholesalers are required to submit registration for rice storage for above 5,000 baskets of paddy and 1,000 rice bags (over 50 tonnes) by 26 June 2023 at the latest, Myanmar Rice Federation released a notification on 21 June.
Under the guidance of the Ministry of Commerce, MRF has been making efforts and participating in the development of the rice market, systematic registration for rice storage, fair market and price stability as the role of the private sector.
MRF stated that digital registration service through Online registration (MyRO) is underway to facilitate the registration process.
While the MyRO online registration system is being set up, trial operations of warehouse storage situations will be conducted in Nay Pyi Taw Union Territory, Yangon, Ayeyawady, Bago and Mandalay regions in June and July 2023. The MRF asked those traders to submit a complete registration form by 26 June 2023 at the latest through export@mrf.com.mm/ or Viber No 09.400067240 or to the office of the MRF in person.
The traders must create a warehouse inventory list to track the stocks. The Department of Consumer Affairs and the MRF will go on an inspection tour of the warehouses as a public-private partnership.
The companies are also notified to fill in the registration form according to the stock information of their business partners (millers and rice traders) in other regions.
Those traders who store above 5,000 baskets of paddy and 1,000 rice bags (over 50 tonnes) are included in this registration. Those farmers working on a small scale and the retailers holding hundreds of rice bags in their hands are not entitled to this notification, a rice seller highlighted. The administrative committee of the MRF also notified that trial operations to collect the warehouse storage data are free of charge. 

Source: The Global New Light of Myanmar

Black gram, pigeon pea prices volatile in Yangon market

by ECONOMY

Yangon’s pulses market sees price fluctuation of black gram and pigeon pea (red gram) in June 2023, traders involved in pulses trading pointed out.
The prices stood at K2,374,000 per tonne of black gram (FAQ/RC) and K2,609,000 per tonne of black gram (SQ/RC) and K3,050,000 per tonne of pigeon pea on 20 June. Black gram was priced at K2,237,500 per tonne while pigeon pea price touched a high of K3,200,000 per tonne on 19 June.
The figures showed a sharp rise of over K130,000 per tonne of black gram and a significant drop of K150,000 per tonne of pigeon pea within one day, U Hla Myint, a trader told the Global New Light of Myanmar (GNLM).
The prevailing price of black gram broke a record high of K2,456,000 per tonne on 17 October 2015.
The black gram price touched a high of K2,425,000 per tonne on 17 June and two days later, the price plunged to K2,237,500 per tonne. Similarly, the pigeon pea price hit an all-time high of K3.33 million per tonne on 5 June 2023 and 15 days later, the price was down by K300,000 per tonne. The pulses market sees a big price swing.
There are 17 million acres of monsoon and summer paddy plantations and 9.63 million acres of pulses and beans. The main buyer India had low pulses output in 2023 so the demand is increasing. The prices are therefore likely to remain on an upward trend.
There were 2.76 million acres of black gram and 1.59 million acres of pigeon pea in the 2017-2018 financial year, accounting for 37 per cent of the overall bean plantations. The export volume of black gram and pigeon pea totalled 750,000 tonnes at that time, which constitutes 57 per cent of overall pulses export volume.
Monsoon pulses cultivation season has started and the newly harvested pigeon pea will enter the market at the end of the year. 

Source: The Global New Light of Myanmar

The EV Revolution

by ENERGY

EV is constantly evolving
Today, electric vehicles (EVs) continue to evolve, with advancements in battery technology, charging
infrastructure, and autonomous driving systems. The push for electric mobility is driven by the goal of achieving
sustainable transportation and reducing dependence on fossil fuels. The term “EV revolution” captures the
profound changes that electric vehicles (EVs) are bringing to the automotive industry and society at large. It
signifies a fundamental shift away from traditional internal combustion engine vehicles towards electric
propulsion. Sustainable transportation aims to meet current needs without compromising future generations. It
refers to low- and zero-emission, energy-efficient, affordable modes of transport, including electric and
alternative-fuel vehicles, as well as domestic fuels. Reducing dependence on fossil fuels is essential for climate
change and sustainable development.
We need to find better ways to use energy system that doesn’t hurt the environment. To do this, we
need new technology advancements, supportive policies, public awareness, and collaboration among
governments, industries, and individuals. EVs generate considerably lower emissions over their lifetime than
vehicles running on fossil fuels, irrespective of the source that generates the electricity. ICE vehicles ignite and
combust fuel within an internal combustion engine (ICE). EVs are powered by electricity from a rechargeable
battery instead. To fully leverage their environmental advantages, it is essential to adopt a comprehensive
approach that encompasses clean energy production, sustainable materials, streamlined manufacturing
processes, and the establishment of supportive infrastructure.

Lithium-ion batteries power EVs
William Morrison, from Des Moines, Iowa, creates the first successful electric vehicle in the U.S. His car is little
more than an electrified wagon, but it sparks an interest in electric vehicles. 1896 advertisement shows how
many early electric vehicles were not much different than carriages. The basic process for converting a car to
electric power involves removing the combustion engine, along with the gearbox, exhaust, and various other
components. These are then replaced with batteries and one or more electric motors. Lithium plays a vital role
in the composition of EV batteries. Lithium-ion batteries, which are utilized in the majority of EVs, rely on five
essential minerals: lithium, nickel, cobalt, manganese, and graphite. However, the extraction and processing of
these minerals can have significant environmental and social consequences. The manufacturing of lithium-ion
batteries generates toxic waste alongside other forms of waste. Although there are attempts to reduce and
handle waste responsibly, it is possible for toxic waste to be produced during the battery manufacturing
process. Proper disposal of used batteries is vital to reduce environmental and health risks from hazardous
waste in EVs. Strategies to maximize EV’s environmental benefits can be implemented.

Rapid growth of EV market
The global EV market has experienced impressive growth, reflecting a substantial transition to sustainable
transportation. Industry reports and projections indicate that this growth trend will persist in the future. Proper
disposal of used batteries is vital to reduce environmental and health risks from hazardous waste in EVs.
Strategies to maximize EV’s environmental benefits can be implemented. Global electric vehicle sales surged
despite the COVID-19 pandemic, exceeding three million units in 2020, as reported by the International Energy
Agency (IEA). IEA’s Global Electric Vehicle Outlook reports over 10 million electric car sales in 2022, with an
estimated 35 per cent growth to 14 million in 2023 worldwide. Global governments have implemented policies
like financial incentives, subsidies, tax exemptions, and stricter emissions regulations to promote electric
vehicle adoption, driving sales and innovation. Battery technology advancements, such as increased energy
density, cost reduction, and improved performance, have propelled EV market growth by enhancing driving
range, reducing charging times, and increasing competitiveness with traditional vehicles. The expansion of the
EV market includes various vehicle segments like buses, trucks, and two-wheelers, driven by emission
reduction, air quality improvement, and cost reduction goals. To drive electric vehicle (EV) adoption,
investments in charging infrastructure expansion are being made by governments and private companies. This
addresses range anxiety and enhance convenience in urban areas and on highways. Major automakers are
committing to EVs, phasing out internal combustion engines and investing in development. Global
collaborations and initiatives like EVI and EV30@30 are accelerating EV adoption and promoting charging
infrastructure development.

Global EV manufacturing
Market growth and adoption of electric vehicles vary by region and country due to factors like regulations,
infrastructure, consumer preferences, and economic conditions.
China holds the title of the largest global electric vehicle (EV) market, leading in sales and adoption. This
achievement is attributed to the Chinese government’s implementation of ambitious policies and incentives to
drive EV adoption. China has made notable progress in producing and promoting affordable electric vehicles
(EVs). Discounts of up to 60,000 yuan were previously offered to EV buyers but ended in 2022. New-energy
vehicles have been exempt from the 10 per cent purchase levy since 2014, extended until the end of 2023.
Chinese automakers like BYD, Great Wall Motors, Chery Automobile, Geely, and NIO offer various affordable
and premium EV models. Furthermore, Tata Motors, a prominent Indian automaker, offers electric vehicles like
the Nexon EV and Tigor EV. Mahindra Electric, a subsidiary of Mahindra & Mahindra, also produces EVs in
India. Hero Electric specializes in electric two-wheelers, while Bajaj Auto has entered the EV market with the
Chetak Electric scooter. Ather Energy is an Indian startup known for advanced electric scooters like the Ather
450X. Japan has been a significant player in the manufacturing and development of electric vehicles (EVs).
Japanese automakers have made notable contributions to the EV industry and have been actively involved in
the production of electric vehicles. Japan aims to make more than two million EVs a year by 2030. In Japan,
where EV demand is picking up gradually, an EV based on the tiny N-ONE model goes on sale in 2025. Two
more EV models are planned for the following year.
Asian nations, including South Korea, China, Japan, and others, have actively participated in electric
vehicle (EV) manufacturing. Companies like Hyundai, Kia, BYD, and NIO have made significant contributions to
the EV industry. These nations have invested in EV production, battery technology, and infrastructure, shaping
the global EV market.
Whereas, the United States is an active participant in electric vehicle (EV) manufacturing. Tesla, along with
traditional automakers like GM and Ford, plays a significant role. Startups such as Rivian and Lucid Motors
also contribute to innovation. Battery manufacturing and government support, including incentives and
infrastructure development, further bolster the US EV industry. in addition, Norway offers lucrative EV
incentives, including tax exemptions. The country will end the sales of internal combustion engine cars in 2025.
Norway’s experience suggests that electric vehicles bring benefits without the dire consequences predicted by
some critics. Popular and affordable EV models include the Nissan Leaf, Renault Zoe, Hyundai Ioniq Electric,
Chevrolet Bolt EV, and Tesla Model 3 (Standard Range). These are just a few examples, and the global EV
market is continually evolving with new models being introduced regularly. While the EV market has been
growing globally, its penetration in individual countries can vary significantly.

EV adoption in Myanmar
EV adoption in Myanmar is influenced by infrastructure, government policies, market demand, and economic
conditions.
To promote the development of EVs and related industries in Myanmar, companies interested in importing EVs
engaged with the Steering Committee on National-level Development of Electric Vehicles and Related
Industries. Upon receiving approval from the committee, the importation of EVs took place. The construction of
electric vehicle (EV) charging stations in Myanmar has already commenced. Pilot projects for EV charging
stations are underway in Yangon and Nay Pyi Taw. Local news sources report that models of EV charging
stations have been sent to the Ministry of Electrical Power in Nay Pyi Taw. The committee has approved the
importation and utilization of electric vehicles in Myanmar as a pilot project, commencing from 1 January to 31
December of this year. This initiative aims to promote the widespread use of electric vehicles locally.

Challenges to the EV Revolution
The lack of charging infrastructure and high capital expenditure costs are hindering the EV revolution, but
stakeholders are taking action to overcome these challenges. Expanding charging networks, improving battery
technology, and educating consumers is crucial. Addressing upfront costs and ensuring a sustainable supply
chain is important for wider adoption.
Grid management and consumer awareness also need attention. Collaboration between governments,
industry, and consumers is key for a successful transition to electric mobility. Continued investment and
support are vital for a sustainable EV revolution. Everyone faces challenges in life. It’s a matter of how you
learn to overcome them and use them to your advantage.

Source: The Global New Light of Myanmar

Gold ornament displayed at gold outlet in Yangon at high prices

by ECONOMY

The price of pure gold remains high at around K3.1 million per tical (0.578 ounce or 0.016 kilogramme) in the unofficial domestic market on 3 May as the spot gold price rallied at $1,961 per ounce and Kyat against greenback depreciates at K2,960 in the grey market. Consequently, YGEA hiked the reference rate to over K2,310,000 per tical. There is a large price difference of over K700,000 per tical between the YGEA’s reference price and the price in the unofficial market. YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,960 in the unofficial forex market.

The US dollar exchange rate weighs on domestic gold prices. The YGEA requested sellers to make gold transactions below K2.9 million per tical on 27 April when the gap between the reference price and the market price is wide. Following the bankruptcy of the US bank in early March, the gold price soared. Despite the gold gain in the global market, Myanmar’s forex market sees no movement at all. Consequently, YGEA requested its members not to buy them competitively, tracking the upward trend in the gold spot price, as per YGEA’s statement released on 20 March. Afterwards, the YGEA called for the members to make gold transactions with only immediate payment and avoid verbal transactions over calls without having any physical stocks.

The YGEA is not bound to have any responsibilities for market manipulation in the unofficial market. As a result of this, its members are asked to strictly adhere to the rules and regulations of the association while making gold transactions. At present, the authorities concerned are attempting to deal with market abuse and inspecting and prosecuting market manipulation is being undertaken.

Moreover, the Central Bank of Myanmar will inspect those manipulators who interfere with market stability through digital platforms, according to the notification dated 20 March. The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022. For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw. With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well. 

Source: The Global New Light of Myanmar