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Private banks offer hire purchase programmes, auto loans, home loans for seafarers, beneficiaries

by SERVICES

Some private banks are offering auto loans to own a car and home loan programmes under hire purchase agreements with low deposits. On 23 December, AYA Bank revealed how the bank buys foreign income of the seafarers with a high exchange rate and introduced the AYA card promotion programme for its debit card, credit card and prepaid card holders, auto loan and home loan programmes, AYA Sompo insurance services and benefits for the beneficiaries of the seafarers, at an event held at headquarters of Myanmar Seafarers Federation.

Additionally, Yoma Bank will also offer the best rate for the seafarer in foreign inward remittance. Opening Flexi Everyday Account of the Yoma Bank, service fee exemption for foreign income remittance and hire purchase system and home loan programme with low deposit and service fee exemption benefits for the seafarers will be provided, as per its statement. The federation will hold an event regarding banking services for seafarers on 30 December 2022.

Source: The Global New Light of Myanmar

Hydropower and solar energy of Kanyin reservoir to produce 29.9 MW of electricity

by ENERGY

Union Minister of Electric Power U Thaung Han, during his inspection tour of the Kanyin reservoir in Ingapu township of Ayeyawady region on 23 December, said that, according to the pre-feasibility studies, 29.9 megawatts of electricity can be produced from hydropower and solar energy from the reservoir.

In addition, the Union minister underscored that the technological needs will be fulfilled with the arrangements of the regional government as soon as possible.

The wind energy project is being implemented in Ayeyawady Region and it should be launched as soon as possible for the socioeconomic development of the region, Union Minister U Thaung Han added. The Kanyin Dam Project was built in the 2002-2003 financial year and was completed in the 2011-2012FY, and the irrigation system was started in the 2017-2018FY.

Source: The Global New Light of Myanmar

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Palm oil prices continue to decline

by TRADING

The delivery order-DO price decreased to K5,150 per viss (a viss equals 1.6 kilogrammes) in the Yangon edible oil market on 24 December 2022. The wholesale reference price of palm oil between 19 and 25 December was K4,415 per viss, indicating a price drop of K100 per viss to the previous week. With the drop of the reference price, the DO price of palm oil also decreased from K5,250 per viss on 20 December to K5,150 per viss on 24 December. The DO price of palm oil fetched K5,100 per viss on the morning of 26 December. Ko Aung Myint, a broker, told the Global New Light of Myanmar-GNLM that the price could be K5,075-K5,050 in the evening due to competitive prices in the market.

Domestically produced two types of palm oil are often sold at lower prices in the market this month compared to imported palm oil. From 19 to 25 December, the price for a tonne of oil at Yangon port was $1,006 and ready-to-pack (18 litres) oil cost $1,156 per tonne. The cost (purchase price) of oil was K4,327 per viss with an average exchange rate of K2,478, according to the relevant notification. The external palm oil dipped from 3,900 Ringgit on 23 December to 3,829 Ringgit on 24 December. Therefore, the reference price slumped again in the last week of December. Most of the buyers are speculating that the external exchange price in the Yangon edible oil market may drop below K5,000 per viss.

The wholesale reference was K4,630 per viss in early December and showed three consecutive weeks of decline. During the three weeks, the edible oil wholesale reference price decreased by K270 per viss. From 28 November to 4 December, the reference price was K4,425, while the DO price was K5,450. On 24 December, the DO price was only K5,150-K5,175 per viss, with a reference price of K4,415. The DO price of imported palm oil declined again by K50 per viss, while the reference price was only K4,360 this week.

It is known that there is speculation in the oil market that palm oil may fall below K5,000 per viss in the external market. Between 15 and 31 August 2022, the wholesale reference price of palm oil was K4,140 per viss, while the retail price in the external market fetched around K9,500 per viss. At the end of December, the reference price stood at K4,360, the DO price at K5,100 and the retail price at only K5,150 per viss. Therefore, during the two periods when the reference price was decreased by K200 per viss, the external exchange price fell by around K4,500 per viss. It is reported that the oil business operators are trading by paying special attention to the market and price situation this month.

Source: The Global New Light of Myanmar

Fuel prices on uptick trends

by ENERGY

Fuel prices in the market have increased gradually, according to the source. On 13 December, the prices stood at K1,795 per litre for 92 Octane, K1,885 for 95 Octane, K2,130 for diesel and K2,205 for premium diesel in the Yangon market. Then, the market showed a gradual price rise and it was K1,970 per litre of 92 Octane, K2,055 per litre of 95 Octane, K2,300 per litre of diesel and K2,380 per litre of premium diesel on 24 December. Therefore, the prices of fuel are increasing by about K170 per litre within two weeks.

The prices are on the rise again as the prices of Singapore-based Mean of Platts Singapore (MOPS) become higher, according to the Supervisory Committee on Import, Storage and Distribution of Fuel Oil. By the end of August, the fuel prices reached their highest at K2,605 per litre for 92 Octane, K2,670 for 95 Octane, K3,245 for diesel and K3,330 for premium diesel. The committee conducts measures to ensure fuel shortages and price stability. Moreover, the Petroleum Products Supervision and Inspection Department released the daily fuel reference prices under the guidance of the Supervisory Committee on Import, Storage and Distribution of Fuel Oil.

The reference rate in Yangon Region is set on the MOPS’ price assessment, shipping cost, premium insurance, tax, other general cost and reasonable profit rate. The rates for regions and states are evaluated after adding the transport costs and the retail reference rates are daily covered in the state-run newspapers and posted on the media and official website and Facebook page of the department daily starting from 4 May. Therefore, the fuel oil stations that sell oil at higher prices than the reference prices are scrutinized and taken action under Petroleum and Petroleum Products Law 2017.

As 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally, the oil prices in the market are changing depending on the international market prices. The government maintains the situation to be stable prices that benefit the oil importers, sellers and consumers and distributes at the fairer prices compared to the prices 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

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Over 500 import/export licences granted at Muse border trade zone in December

by TRADING

The Trade Department under the Ministry of Commerce has been issuing import/export licences at the border trade zone and between 1 and 18 December, a total of 514 licences were granted at the Muse trade zone for Sino-Myanmar cross-border trade, the Ministry of Commerce stated.

Import/export and related business licences can be done through Myanmar Tradenet 2.0 and three licences for exports and 511 for imports of machines and parts, tangerine, stationery, pesticide and other commodities were issued in those days.

To facilitate the National Single Window system, have a single entry in trading and digitize the licensing system and related businesses, the Trade Department under the Ministry of Commerce has officially started the Myanmar Tradenet 2.0 portal from 1 November 2020. The trade value at Muse 105th-mile trade zone totalled U$S1.535 billion, comprising exports worth $1.35 billion and imports worth $182.493 million.

Source: The Global New Light of Myanmar

CB Bank sets K2,865 for foreign income inward remittance with additional contribution of K40 per dollar

by ECONOMY

The government of Myanmar provides K30 per dollar (an equivalent amount of foreign currency) in the salary remitted by Myanmar citizens abroad. The authorized CB Bank will add another K10 to this government’s contribution of K30. When their family members withdraw cash, they will get an additional contribution of K40 per dollar and a dollar exchange rate is set at K2,865, the CB Bank notified.

Those additional contributions cover the foreign income by Myanmar citizens including seamen and Myanmar migrant workers. Only the remittance of foreign salary through the authorized banks is entitled to this. In addition to the additional contributions and commission, they are exempted from tax on foreign income inward remittance under the Union Tax Law. The dollar over-the-counter market rate is estimated at over K2,800.

Transaction is made when the customers and sellers agree on the price. The Central Bank of Myanmar notified on 28 October 2022 about this additional contribution by the government for salary remittance of Myanmar citizens abroad from 1 November. The authorized banks for foreign exchange (KBZ Bank, CB Bank and UAB Bank) are adding the additional support fund of the government, as per the respective statements. This move is to support and encourage the Myanmar workers abroad who are earning foreign earnings for the State.

Source: The Global New Light of Myanmar

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Myanmar ships about 150,000 tonnes of rice to Bangladesh under G-to-G pact

by TRADING

According to the Government-to-Government pact between Myanmar and Bangladesh, Myanmar has conveyed over 150,000 tonnes of white rice to Bangladesh, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade on 8 September this year. According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027. In accordance with the MoU, Bangladesh’s Directorate General of Food and Myanmar Rice Federation signed a sales contract for 200,000 tonnes of Myanmar’s white rice to be exported to Bangladesh.

As per the sales contract, Myanmar has exported approximately 15,000 tonnes of white rice to Bangladesh as of 19 December 2022. The remaining will be delivered by the deadline. As per the MoU between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. In line with the contract, white rice (ATAP) GPCT Broken STX variety will be delivered. The FOB prices were 2.78856 Yuan per kilogramme and 2788.56 Yuan per tonne.

The Export/Import division of the Trade Department issued 42 export licences worth over 534 million Yuan for 41 companies to convey 191,700 tonnes of rice to Bangladesh. Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar

Myanmar’s manufacturing sector attracts more than $187 million in past eight months

by MANUFACTURING

A total of 41 foreign enterprises pumped US$187.426 million into Myanmar’s manufacturing sector in the past eight months (April-November) of the current financial year 2022-2023, including capital expansion by the existing enterprises, as per the statistics released by the Directorate of Investment and Company Administration (DICA). Myanmar attracted foreign direct investments of $1.459 billion from 58 enterprises during the April-November period. 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 $817 million from 10 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 hotels and tourism sector attracted less than 1 million. 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 $1.545 million. The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community, according to Myanmar Investment Commission. Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report.

In a bid to boost factory productivity with a healthy workforce in the garment industry, Mobile Medical Check to garment workers took place in Yangon and Nay Pyi Taw, supported by UNICEF Myanmar. Moreover, Myanmar Garment Manufacturers Association has organized Labour Law Awareness and WCC Training since July 2022, with the support of UNICEF Myanmar. It aims to provide the soft skills needed for industrial development and create a better workplace for garment workers. Additionally, the association launched a voluntary labour compliance assessment-VLCA Online System on 10 November 2022.

Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. There are active 541 factories operated under MGMA. The majority of them are from China, followed by Myanmar and the Republic of Korea. 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

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Mang Wein border point expected to be reopened after Chinese New Year

by TRADING

Trade activity at Muse-Mang Wein crossing point, which performed the majority of trade between Myanmar and China, is expected to resume after the upcoming Chinese New Year in 2023, said U Min Thein, vice chair of Muse Rice Wholesale Centre. China has restricted border access through Mang Wein border point amid the COVID-19 cases since 30 March 2021. This being so, it was about one year and nine months that the trade at Mang Wein was suspended. The border checkpoint is yet to be reopened. Since April 2022, China has shut down the Ruili-Kyalgaung crossing point and it was eased on 10 December 2022.

Following the reopening of Kyalgaung border, the checkpoints linking to Kyalgaung crossing point in Muse trade post (Nantaw, Sinphyu and Mang Wein) are likely to be reopened soon, traders engaged in Muse border forecast. “On 10 December, Kyalgaung crossing point was reopened. Both people from Shweli (Ruili) and Kyalgaung are free to pass the point. It raised expectations of traders for the reopening of Mang Wein, Nantaw and Sinphyu checkpoints. Speculation about resumption of cross border trade at those points is going around,” U Min Thein said.

On 18 October, Myanmar’s officials and counterparts from Tathong, Yunnan Province negotiated the promotion of bilateral cross-border trade and reopening of Mang Wein checkpoint through a video conferencing. Prior to the pandemic, Kyalgaung was the busiest and biggest trade post and it performed the highest trade in the China-Myanmar border. Those traders involved in Muse trade zone are relying on the Ruili city. There is a direct trade channel to Ruili through Kyalgaung point so the traders have a smooth transport. This route brings easier and better access to Ruili from Muse border post. Only when the Kyalgaung border post is reopesned can the trade boost, traders elaborated.

China shut down all the checkpoints linking to Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November 2021. Myanmar daily delivers rice, broken rice, pulses, rubber, watermelon, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt with about 100 trucks and building materials, electrical appliances, pharmaceuticals, fertilizer, household goods and industrial raw materials are imported into the country with 40 trucks. Myanmar has opened five border trade posts with China; Muse, Lweje, Kanpaiti, Chinshwehaw and Kengtung. Majority of the trade is carried out through Muse post, Ministry of Commerce’s data indicated. 

Source: The Global New Light of Myanmar

Dollar exchanged at K2,850 higher than CBM’s reference rate

by ECONOMY

Although the Central Bank of Myanmar (CBM) set the reference exchange rate at K2,100 per dollar, it reached K2,850 per dollar in the market, according to local forex traders. The CBM released a statement at a reference rate within the margin of ± 0.3 for selling, purchasing and exchanging foreign currency on 10 August.

Therefore, the banks and business persons including exchange counters set the purchase price at K2,100 per dollar and the selling price at K2,106 per dollar. Despite the set prices, the purchase price was K2,835 per dollar while the selling price was K2,9855 per dollar in the unauthorized market on 17 December. Thus, the CBM declared on 15 December that there is no plan to fix the reference rate, despite a gap between the market price and the reference price.

Some unscrupulous traders spread rumours of possible changes in CBM’s reference rate and the various reasons for rising dollar prices, to manipulate the market, the CBM stated. In addition, CBM sold US$ 108 million, including USD liquidity and salary transactions, into the market in 45 days and announced further selling in the future. Also, the hard currency US dollar hit a high of over K4,500 in the forex market at August-end. Consequently, the CBM sold dollars at its auction market for the sectors in need, to stabilize the exchange rate. A total of US$443.8 million were sold at an auction rate in 2021 as well. 

Source: The Global New Light of Myanmar