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Trade activity on Muse border yet to return to normality

by TRADING

Trade activity at Muse border post has not returned to normalcy in post-Chinese New Year, with only 60 trucks loaded with export and import items flowing in and out of the zone, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. Before the Chinese New Year holidays, about 30 truckloads of rice and broken rice were sent daily to China through the Kyinsankyawt post. The number of trucks has declined to 10 at present. At present, Myanmar exports rice, broken rice, watermelon, sugarcane, corn, pulses, rubber and fishery products to China through Kyinsankyawt post with 40 trucks, and goods are brought in with 20 trucks. Trade is yet to return to normal.

“The CNY has just finished. So, trade has not returned to normalcy. The truck frequency is still less. The banks have not resumed their service. Moreover, the majority of the traders and employees engaged in the cross-border trade are on vacation. However, the trade activity commenced with some export items,” U Min Thein elaborated. Similarly, the Mang Wein border that was reopened in the pre-CNY sees only a small number of trucks, he added. However, only six-wheel trucks driven by Myanmar drivers are allowed to pass the Mang Wein crossing. Other trucks are still not given the green light. Additionally, other goods except for agricultural products (watermelon, muskmelon), minerals and fisheries products are allowed to be sent to China through that border.

Meanwhile, China gives the go-ahead to the imports of construction goods, electrical appliances, medical devices, industrial equipment, consumer goods, household goods and food products only through that border. Myanmar primarily conveys goods to China via the Muse border. Nonetheless, traders usually face challenges amid the policy changes in China triggered by the COVID-19 cases. China shut down the checkpoints linking to the Muse border in wake of the pandemic. Nantaw and Sinphyu border points were suspended on 1 April 2020 and Mang Wein was closed down on 30 March 2021. The remaining Kyinsankyawt and Panseng crossings were also restricted on 8 July 2021. Only the Kyinsankyawt crossing was reopened on 26 November 2021. Additionally, trade activity on the Mang Wein border, which performed the majority of trade, was reinstated on 14 January 2023. Furthermore, Nantaw and Sinphyu border points, major border crossings for people, resumed trade activity on 25 January.

Source: The Global New Light of Myanmar

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YRIC endorses 10 CMP-based manufacturing projects with over 4,300 jobs

by INVESTMENT

The Yangon Region Investment Committee (YRIC) endorsed nine foreign enterprises and one domestic business in the power and manufacturing sectors at the recent meeting held on 25 January 2023, creating 4,300 jobs for residents. They will execute solar power projects, milling and production of sunflower oil and peanut oil, refining and production of palm oil, printing and dyeing enterprises, manufacturing of electrical appliances and production of footwear on a Cutting, Making, and Packing (CMP) basis. Those five businesses will bring in an estimated capital of about K6 billion and over US$10 million. YIIC gave the go-ahead to four foreign projects with over 4,300 jobs.

Source: The Global New Light of Myanmar

Myanmar Travel Fair 2023 to be held starting from 27 January

by HOTEL & TOURISM

The Myanmar Travel Fair 2023 will be held at the Secretariat Office in Yangon starting from 27 to 29 January. The event will include over 40 booths of travel companies, airlines, hotels, restaurants, handicrafts, local products, local foods, insurance companies, healthcare companies and travel agencies from Thailand and Malaysia.

The event is organized by the Myanmar Tourism Entrepreneurs Association and aims at encouraging the revival of the tourism industry in January, the beginning of the tourist season, according to officials.
In the tourist season of 2023, vacationers are visiting Bagan, Popa, Pindaya, Inlay, Ngapali, Chaungtha, Ngwehsaung, Myeik Archipelago and historical pagodas.

The Myanmar Tourism Entrepreneurs Association and partnership associations together provide services for the pleasure trip to be quick and smooth. Visitors can participate in the lucky draw programme for inbound/outbound air tickets, hot-air balloon tickets and hotel tickets. The fair will be open from 9 am to 6 pm. 

Source: The Global New Light of Myanmar

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Rice price skyrockets in domestic market

by TRADING

The prices of new rice spiked in the domestic market, according to the Wadan Rice Wholesale Centre. On 20 January 2023, new Pawsan rice prices moved in the range between K61,000 and K80,000 per bag depending on the producing areas (Shwebo, Myaungmya, Dedaye, Pyapon and, Pathein). Three days after, the prices moved up to K63,000-84,000 per bag. Figures indicated an increase of K2,000-4,000 per bag within three days.

Similarly, the prices of low-grade rice stayed between K43,500-67,000 per bag depending on different varieties (Kyapyan, Emahta, Meedone, Ngasein) on 20 January. The prices touched a high of K45,500-70,000 per bag on 23 January, showing a steep rise of K1,000-4,000 per bag depending on different varieties. High demand for paddy in the market pushed up the rice prices.

Starting from 3 August 2022, Myanmar Rice Federation, Myanmar Rice Producers and Planters Association, Myanmar Rice Millers Association, and traders and brokers engaged in Wadan Rice Wholesale Centre and Bayintnaung Rice Wholesale Centre have been working together to offer fair prices for Shwebo Pawsan from K75,000-77,000 per bag and other rice varieties to the consumers at the Wadan Wholesale Centre.

The offer prices are K52,000-55,000 per bag of Pawsan from the Ayeyawady area, K55,000-60,000 per bag of Kyapyan, and K35,000-37,000 per bag of short-mature rice varieties (90 days) at the Wadan Rice Wholesale Centre. Each household can buy only one bag. Those traders and retailers are not entitled to buy them.

Source: The Global New Light of Myanmar

Fuel oil market sees K100 per litre hike for Octane 92/95

by ENERGY

On 20 January 2023, the prices of fuel oil were K2,200 per litre for Octane 92, K2,275 for Octane 95, K2,420 for diesel and K2,500 for premium diesel. On 21 January, the prices declined to K2,305 per litre for Octane 92, K2,385 for Octane 95, K2,480 for diesel and K2,560 for premium diesel. The figures indicated an increase of K60-105 per litre depending on the types of oil within one day. The domestic fuel prices vary following the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.

Consequently, the prices touched a high of K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,245 for diesel and K3,330 for premium diesel in late April. The committee is steering the oil sector effectively to ensure adequate supply in the domestic market and price stability for energy consumers. The committee is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate is set on the MOPS’s price assessment, shipping cost, profit margin, premium insurance, tax and other general costs.

The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the retail reference rates daily cover on the state-run newspapers and are posted on the media and official website and Facebook page of the department on a daily basis starting from 4 May. The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging rather than the set reference rate.

As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. The domestic fuel price is highly correlated with international prices. The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those of regional countries. Some countries levied higher tax rates and hiked oil prices than Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also levies only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate.

Source: The Global New Light of Myanmar  

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Kyat weakens to K2,850 against US Dollar on 18 Jan

by ECONOMY

Kyat stopped falling against greenbacks and the Kyat-US Dollar counter rate has dipped to K2,850 in the local forex market. During 12-15 January 2023, the hard currency was around K2,900 in the unauthorized market. Thereafter, the rate slid again following the meeting of the governor of the Central Bank of Myanmar (CBM) with the money changers (non-bank financial institutions) on 16 January 2023. As they are highly involved in the foreign exchange business, the governor directed them to keep the CBM posted on any market manipulation that destructs price stability.

Consequently, the exchange rate decreased a bit. The CBM set the reference exchnge rate at K2,100 against the US dollar, showing a large price difference of K700 compared to the unauthorized market rate. However, there is no way to set the new price, as per the notification released on 15 January. Some unscrupulous people were allegedly spreading fraudulent news to manipulate the market and attempt to make the dollar gain, stating that changing reference prices and repaying financing for the fuel oil companies, according to the statement. The CBM injected liquidity into the banking sector.

Approximately US$108 million will be sold within 45 days in the market through foreign salary transfers. CBM has set the currency trading band at 0.3 per cent for the Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying, according to a directive issued by the CBM on 10 August 2022. Therefore, financial institutions including banks and informal money changer are instructed to set a dollar value at K2,100 for buying and K2,106 for selling. However, those rates are not effective in trading for now. Last August, a dollar value hit an all-time high of over K4,500 in the grey market. Consequently, the CBM sold dollars at its auction market for the sectors in need, to control the soaring dollar. A total of $443.8 million were sold at an auction rate in 2021 as well. 

Source: The Global New Light of Myanmar

Mandalay-Mangshi direct flight to be resumed on 21 Jan

by HOTEL & TOURISM

A Mandalay-Mangshi direct flight will be resumed on 21 January and will operate three days a week. Ruili Airlines has temporarily suspended flights due to the Covid-19 pandemic and will launch weekly flights on Tuesdays, Thursdays and Saturdays starting from 21 January. The flight will leave from Mangshi at 5 pm and arrive in Mandalay at 6:10 pm. It will leave from Mandalay at 7:10 pm and arrive in Mangshi at 8:10 pm.

Source: The Global New Light of Myanmar

52 cargo ships scheduled to arrive at Yangon Port in Jan 2023

by LOGISTICS

A total of 52 cargo ships carrying many containers are slated to enter Yangon Port in January 2023, according to Myanmar Port Authority. This month, nine cargo ships, which are run by Sealand Maersk Asia, eight by New Golden Sea (Cosco), six by Samudera Shipping Line, four each by MSC Line, SITC Line and RCL, three each by TI2 Container Line and PIL, two by CMA CGM Line, Ever Green Line and X-Press Feeder and one by Bay Line, IAL, BLPL Shipping Line, Land & Sea and CSL and will enter Yangon Port.

Yangon Port handled a total of 620 cargo ships last year, according to Myanmar Port Authority. The number of cargo ships entering Yangon Port stands at 49 in January 2022, 48 in February, 50 in March, 52 in April, 54 in May, 53 in June, 49 in July, 55 each in August and September, 50 in October, 51 in November and 54 in December respectively. From May 2021, the arrival of ships at terminals in Yangon has increased again.

To fulfil the seaborne trade requirements, three new cargo ships by Maersk Line Myanmar (Sealand Maersk) started to run in 2021. Myanmar Port Authorities and Yangon inner terminals are providing services to ensure the fast and reliable cargo handling and withdrawal of the containers. Earlier, the larger ships had draft problems preventing their sailing on the Yangon River. The draft extension is up to 10 metres with the new navigation channel accessing the inner Yangon River and the international ocean liners can access the inner port for now. 

Source: The Global New Light of Myanmar

YGEA reference price soars to K2.262 mln per tical tracking global gold spot prices

by ECONOMY

The reference price of gold climbed to K2.262 million per tical (0.578 ounce or 0.016 kilogramme) in the domestic market following the increase in global gold spot prices, Yangon Region Gold Entrepreneurs Association stated. At the end of last year, global gold spot prices stood at US$1,823 per ounce and the yellow metal was set at K2,147,500 per tical by the YGEA. As the price rallied to $1,920 in the international market, the reference price rose to K2,262,000 per tical. The figures indicated an increase of $97 per ounce and over K110,000 per tical. Despite the YGEA’s reference price, the pure gold spiked at K2,850,000 per tical in the unofficial market, showing a large gap of K580,000 per tical.

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 K2,880 in the unofficial forex market. Meanwhile, Myanma Gems Enterprise (MGE) sold the gold at K2.5 million per tical despite the large gap. On 4 January, as a celebration of the 75th Anniversary Independence Day (Diamond Jubilee), new designs of 1 tical and 0.5 tical gold coins have been on sale at the respective shops in Nay Pyi Taw, Yangon and Mandalay of the MGE from 5 January 2023, along with other old coins. Pure gold is offered at K2.5 million per tical. The gold coin amounted to K2.58 million per tical, including making charges of K80,000. The final price of gold is K1.292 million per 0.5 tical with making charges of K42,000.

For 0.25 tical, the market value is K647,000 including making charges of K22,000. The price of gold in the domestic market is positively related to the global gold spot prices and dollar exchange rate. The soaring dollar exchange at over K4,500 pushed up the pure gold price 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 in Yangon, Mandalay and Nay Pyi Taw under the auction system. 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

New Yangon-Dala River Bridge construction expected to complete 100% in early 2024

by CONSTRUCTION

The 100 per cent of the new Myanmar-Korea Friendship Yangon-Dala River bridge is expected to be completed by early 2024, according to the Ministry of Construction. For the main bridge PY2 on the Yangon side, the shaft piling work, which is the mid-water pillar work, has been completed from the bottom of the pillar to a height of eight metres. The construction work for the approach bridge along Phonegyi Road has also been completed. 48 per cent of the entire bridge has now been constructed due to the pouring of seven reinforced concrete floors according to the bridge construction site.

As the construction of the bridge nears completion, residents of Lanmadaw Township said that the scenery of the bridge project area — along Phonegyi Road in Lanmadaw Township and the port near the shore — has also changed. U Ye Aung, a resident of Phonegyi Road, told the Global New Light of Myanmar (GNLM) that the erection of bored piles for the main approach two-lane bridge along Phonegyi Road was seen in the last months of 2020. Around two years later, in early 2023, it has been seen that rows of beams have been placed between the main pillars and that reinforced concrete slabs have been laid.

Similarly, it is only necessary to lay the RC slabs for the two pedestrian overpasses under construction at the night market on Strand Road between Latha and Lanmadaw Township. The construction of the Dala Suspension Bridge over the Yangon River started in May 2019 and will be completed in early 2024. Therefore, in the next year or so, we will see a change in the scene of traffic using not only the surface road but also the approach bridges in front of Strand Road and Phonegyi Road. Along with the changes in the scenes, transport will become convenient and the development of the region will be improved. Especially, a new scene with various vehicles passing by on the concrete road where cargo vehicles travel, and above the bridge road, will become a new image of Yangon, the commerical city, Daw Win Ma, a resident of Lanmadaw Township, told the GNLM. 

Source: The Global New Light of Myanmar