Domestic fuel oil price remains on upward trend

by ENERGY

The domestic fuel market sees a small change in prices yet it stays on an upward trajectory. This month, the market sees a price swing every day. On 17 February, the prices touched a high of K2,185 per litre of Octane 92, K2,260 for Octane 95, K2,240 for diesel and K2,320 for premium diesel. The domestic fuel prices are set depending on 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.

Last August 2022, the oil prices peaked at K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,330 for premium diesel and K3,245 for diesel. The committee is therefore governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and to ensure price stability for energy consumers. The Petroleum Products Supervision and Inspection Department, under the guidance of the committee, is issuing the daily reference rate for oil to offer a reasonable price to energy consumers.

The reference rate in Yangon Region is set on the MOPS’s price assessment, shipping cost, premium insurance, tax, other general cost and health profit per cent. The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the retail reference rates daily covered on the state-run newspapers and are posted on the media and official website and Facebook page of the department daily starting from 4 May. 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 poses 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

Online stay extension, re-entry visa allowed for e-Visa (Business) holders

by HOTEL & TOURISM

The Ministry of Immigration and Population announced that foreigners who are residing and working with e-Visa (Business)in Myanmar can apply for stay extension and re-entry visa online. The e-stay extension was launched on 1 February and foreigners, who are residing and working with e-Visa (Business) in Myanmar, can apply for the stay extension and re-entry visa online. Myanmar has issued Tourist e-Visas and Business e-Visas electronically since 1 September 2014.

Source: The Global New Light of Myanmar

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Myawady border trade crosses $151.543 million in January

by TRADING

The value of trade through the Myawady border post amounted to US$151.543 million in January 2023, the Ministry of Commerce’s statistics indicated. Trade via the Myawady border met 70.16 per cent of the target last month, with exports worth $48.301 million and imports worth $103.242 million.

The overall trade figures showed a sharp drop of $66.737 million compared to that in the corresponding period last year, with a decrease of $42.015 million in exports and $24.722 million in imports. The exports in agricultural products, livestock products, fishery products and manufacturing groups declined, while imports showed a decrease of $1.519 million in capital goods, $14.389 million in intermediate goods and $8.814 million in consumer goods.

Nonetheless, the trade value in January 2023 was up by $55.301 million from that of December 2022, with an increase of $11.672 million in exports and $43.638 million in imports. Exports of agricultural products, forest products, livestock products, minerals, finished industrial goods and other goods rose. Similarly, import growth of capital goods (US$10.005 million), intermediate goods ($16.095 million) and consumer goods (17.538 million) were recorded last month.

Source: The Global New Light of Myanmar

Five sets of EV chargers imported from China arrive

by ECONOMY

Another five sets of EV chargers for battery electric vehicles (BEVs) arrived at Yangon International Airport on 11 February, according to the Steering Committee on National-Level Development of Electric Vehicles and Related Industries. The chargers were imported from China through NPK Motor Co Ltd.

They will be used in the 60 kW charging station at the Thabyaygon Market in Nay Pyi Taw. The first batch of five units of 60 kW electric vehicle (EV) chargers and two sets of 200 kW EV chargers arrived on 1 February and they will be used at charging stations at No 3 Tollgate on the Yangon-Mandalay Expressway, the Pyu bus station and Nay Pyi Taw Junction bus station.

There are forty electric vehicles, which are China-made BYD E2 models, have been imported and 10 electric vehicles will be used as taxis on a trial run at Yangon International Airport and another 10 at the Nay Pyi Taw Thabyaygon Market.

Source: The Global New Light of Myanmar

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Broken rice price surges to K43,000 per bag

by TRADING

The price of broken rice jumped to K43,000 per 108-pound bag, according to the Wahdan Rice Wholesale Centre. The price of broken rice was K40,000 per 108-pound bag on 10 February 2023. The price regained to K43,000 per bag on 14 February 2023, reflecting a significant increase of K3,000 per bag within a few days.

The rice demand of exporters pushed up the price of broken rice, traders said. Additionally, the prices of various rice varieties also moved up in the domestic markets. The prices of new high-grade Pawsan rice were around K72,000-87,000 per bag, while old 90-day short-mature rice fetched K61,000 and new one was valued at K56,000. New Khuni rice was worth K63,000 per bag.

Myanmar Rice Federation, Myanmar Rice and Paddy Traders Association, Myanmar Rice Millers Association, traders involved in rice wholesale centres (Wahdan and Bayint Naung) have offered rice at a cheaper rate from 3 August 2022 every day between 9 am and 3 pm except for office holidays.

Ayeyawady Pawsan, Shwebo Pawsan, Pawkywe and short-mature rice varieties (90 days) will be sold at a cheaper price between K35,000 and K77,000 per bag. Each household is entitled to buy one rice bag only and those resellers, traders and retailers are excluded from this scheme. 

Source: The Global New Light of Myanmar

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MIC meeting 1/2023 approves 8 new businesses including renewable energy-generating electricity

by INVESTMENT

THE meeting 1/2023 of the Myanmar Investment Commission was held yesterday morning at the Union Government Office in Nay Pyi Taw. SAC member Myanmar Investment Commission Chair Lt-Gen Moe Myint Tun and members of the commission attended the meeting.

MIC greenlighted the expansion of the capital in eight ongoing investment projects and new investments in the electricity sector, the transport and communications sector, the petroleum and gas sector, the industrial sector, the hotels and tourism sector and the service sector. The investment amount of these businesses is US$143.634 million and K98,078.094 million generating 1,374 domestic job opportunities. The production of electricity from renewable energy was also approved.

Out of 52 countries and territories investing in Myanmar, Singapore, China and Thailand ranked the largest shares of investments as of end-January 2023. Among the twelve economic sectors, the most invested sectors are 28.30 per cent of the total investments in the electricity sector, 24.63 per cent in the petroleum and natural gas sector and 14.34 per cent in the industrial sector. Myanmar Investment Commission oversees and approves project proposals of investment as well as is serving the existing investors under the Myanmar Investment Law.

Source: The Global New Light of Myanmar

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Palm oil wholesale reference price for Yangon market moves slightly up

by TRADING

The wholesale reference rate of palm oil in the Yangon market slightly increased compared to that of the previous week, according to the Supervisory Committee on edible oil import and distribution. The reference price stood at K4,480 per viss in the week from 6 to 12 February. For the week ending 19 February, the price was set higher at K4,490 per viss. The figures showed a small increase of K10 per viss.

The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services, and issuing the wholesale market reference rate for edible oil every week. Regardless of the reference price, the market price was exorbitantly high at over K6,000 per viss. If those edible oil retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Essential Supplies and Service Act, MoC released a statement.

At present, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July to offer palm oil at a subsidized rate. They sell palm oil at K4,700 per viss to consumers directly. However, there are limited sources of supply although they directly sell palm oil at a reference rate depending on the volume quota. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes per year. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia. 

Source: The Global New Light of Myanmar

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More than $200 mln of FDI pumped in Myanmar manufacturing sector as of 31 Jan

by INVESTMENT

A total of 52 foreign enterprises brought US$200.148 million in Myanmar’s manufacturing sector in the past ten months (April-January) of the current financial year 2022-2023, including capital expansion by the existing enterprises, as per statistics released by the Directorate of Investment and Company Administration (DICA). Myanmar Investment Commission nodded 70 foreign projects from eight countries in the past ten months. The country attracted a capital of US$1.476 billion this FY, including the expansion of capital by the existing enterprises. Those enterprises are engaged in agriculture, mining, manufacturing, power, hotels and tourism, real estate and service sectors respectively.

The majority of the investments were brought into the manufacturing sector. The agriculture sector drew $3.5 million from two projects. The power sector received $820.27 million from 11 projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $413.068 million in the service sector respectively. The mining sector received $7 million from one project, while one enterprise also put investments of less than a million into the hotels and tourism sector and some capital expansion of the existing businesses is also seen.

Additionally, the livestock and fisheries sector saw a capital expansion of $1.845 million. The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community. Manufacturing of fertilizer, cement, iron and steel, value-added foodstuff, electric vehicle and pharmaceutical and medical devices, agriculture and livestock farming and its related industries and public transportation services will be prioritized for investment. The commission welcomes both foreign direct investment and domestic investments made by Myanmar citizens in those sectors. Myanmar Investment Commission and the related ministries will also ensure investment facilitation.

Myanmar’s manufacturing sector is largely concentrated in garment and textile produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. There are 547 factories actively operated under the Myanmar Garment Manufacturing Association. The majority of them are from China, followed by Myanmar and the Republic of Korea. The MGMA has been providing capacity development programs and labour law awareness training compulsory programmes to boost employee performance and build employee resilience. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022). Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping an estimated capital of $202.667 million. 

Source: The Global New Light of Myanmar

Kyat depreciates at K2,860 against US dollar in market despite CBM’s reference rate of K2,100

by ECONOMY

Kyat depreciation against greenbacks persists at K2,860 in the grey market although the Central Bank of Myanmar set the reference exchange rate at K2,100. 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 exchanges are instructed to set a dollar value at K2,094 for buying and K2,106 for selling.

However, the over-the-counter Kyat-dollar exchange rate was K2,850 for buying and K2,865 for selling on 10 February. There is a large price difference between the reference rate of the CBM and the unofficial 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 were sold within 45 days in the market through foreign salary transfers. More amount will be put for sales. 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