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Sino-Myanmar bilateral trade totals over US$5 bln in seven months

by TRADING

The value of trade with Myanmar’s main trade partner China through maritime and sea trade channels crossed US$5 billion in the first seven months (April-October) of the 2022-2023 financial year, comprising exports worth $1.995 billion and imports valued at $3.082 billion, according to statistics released by the Ministry of Commerce. Myanmar primarily exports agri-products to China through the five land borders (Muse, Lweje, Chinshwehaw, Kampaiti and Kengtung.

However, trade in agricultural products was frequently stopped on account of China clamping down on illegal trade on land borders. Furthermore, China stepped up border control measures to contain the spread of COVID-19, hindering border trade in the previous years. At present, although China eased coronavirus restrictions, only the Kyinsankyawt crossing out of the Sino-Myanmar land borders linking to the Muse post are reopened.

The value of bilateral trade with China stood at $4.3 billion in the 2021-2022 mini-budget period, $9.82 billion in the 2020-2021FY, $12 billion in the 2019-2020FY, $11.36 billion in the 2018-2019FY, $6 billion in the past mini-budget period, $11.78 billion in the 2017-2018 financial year and $10.8 billion in the 2016-2017FY respectively. Rice, beans and pulses, corn, fruits and vegetables, fishery products, rubber, chilli peppers and other food commodities are exported to China, whereas machinery, plastic raw materials, consumer products and electronic appliances flow into Myanmar. 

Source: The Global New Light of Myanmar

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YRIC green-lights one domestic business, one foreign enterprise on 14 De

by INVESTMENT

The Yangon Region Investment Committee (YRIC) endorsed one domestic project and one foreign enterprise in the manufacturing sector, with an estimated capital of over K4.08 billion and US$0.50 million at a meeting 12/2022 held on 14 December at the YRIC office in Yankin Township. Those two businesses are expected to create 295 jobs. Moreover, the meeting discussed the general issues of 16 companies and gave the go-ahead for capital expansion of $2.483 million by four companies. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis.

To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China Taipei, Malaysia, the British Virgin Islands and Seychelles are arriving in the region. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to grant permissions for local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million. Myanmar attracted foreign direct investments of $1.459 billion from 58 enterprises during the April-November period of the current financial year 2022-2023. Singapore is the top source of FDI in Myanmar so far.

Fourteen Singapore-listed enterprises pumped in foreign investments of $1.154 billion into Myanmar in the past eight months. Hong Kong SAR stood as the second largest investor this FY with an estimated capital of over $164.9 million by 12 enterprises and the existing ones. China is ranked third in the investment line-up with more than $94 million from 26 businesses and the existing ones, according to the Directorate of Investment and Company Administration. Two enterprises from the Republic of Korea also pumped $5.4 million into Myanmar, with the existing ones. One enterprise each from Belize, China Taipei, the UK and Japan also made investments in the past eight months respectively. The existing enterprises from India, Bangladesh, Thailand, Switzerland and Seychelles also increased their investments.

Source: The Global New Light of Myanmar

Fuel oil prices jump by K200 per litre within two days

by ENERGY

The prices of fuel oil were up by K200 per litre within two days, according to the fuel oil market. On 13 December, the prices of fuel oil were K1,795 per litre for Octane 92, K1,885 for Octane 95, K2,130 for diesel and K2,205 for premium diesel. On 15 December, the prices rose to K1,925 per litre for Octane 92, K2,010 for Octane 95, K2,355 for diesel and K2,435 for premium diesel. The domestic fuel prices are following the increase in 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 August. 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’ 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.

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

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Myanmar ships over 140,000 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 140,000 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. In line with this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar yearly 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 a total of 143,225 tonnes of white rice by 19 ships to Bangladesh as of 12 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. Following the contract, white rice (ATAP) GPCT Broken STX variety will be delivered. The FOB prices were 2.78856 Yuan per kilo and 2,788.56 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 yearly 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

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Myanmar’s exports rise 15 per cent in FY 2022-2023

by TRADING

Myanmar’s exports significantly grew by about 15 per cent in the eight months of the current financial year 2022-2023 from the corresponding period of last year. Between 1 April and 2 December of the current FY2022-2023, Myanmar’s exports soared to US$11.17 billion from $9.7 billion in the year-ago period. The figures reflected a sharp increase of over $1.44 billion compared with a year-ago period, according to data from the Ministry of Commerce.

The negative pandemic consequences dealt a severe blow to the agriculture, livestock and mineral sectors during the past mini-budget period.  As China eases some virus rules and regulations, the export sees a slight increase in the agriculture sector this FY. At present, the CMP garment sector raises its head again after the vaccination programme to the factory workers as well. Of the seven export groups, fisheries, mineral and other exports showed a decrease compared to the year-ago period.

The values of export were registered at $2.37 billion for agro products, $18.2 million for livestock, $491.2 million for fishery products, $205 million for minerals, $97.14 million for forest products, over $7.65 billion for manufactured goods, and $320.35 million for other goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is focusing on reducing trade deficit, export promotion, import substitution and market diversification.

Source: The Global New Light of Myanmar

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Export earnings facilitate import licence application

by TRADING

The Myawady Border Trade Zone under the Department of Trade notified that import licence application can be made as long as there are export earnings in the bank account of applicants, except for goods that are not allowed to be imported via the Myanmar-Thai land borders. According to the Export/Import Bulletin 10/2022, export earnings and other incomes including salary and wage remittances of Myanmar nationals in other countries will be allowed to use in the importation of commodities.

Therefore, importers will have to use the proceeds to make payments for imports through their respective banks. Among the land borders with neighbouring Thailand, the Myawady border trade zone, which imports most goods to the domestic market, made trading worth US$1,494.796 million in over eight months from 1 April to 2 December of this financial year, stated the Ministry of Commerce.

Among these, imports from Thailand were worth $978.878 million. The cross-border trade accumulated $1,654.481 million year on year with $938.591 million worth of imports from Thailand. Therefore, there was a decrease of $199.972 million year on year while imports increased by $40.287 million, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar

Kyat depreciation against US dollar slows significantly

by ECONOMY

Myanmar managed to hold back Kyat depreciation against greenbacks and the Kyat-US Dollar over-the-counter rate has dipped in the local forex market. In August, a dollar value hit an all-time high of over K4,500 in the grey market. The prevailing exchange rate is K2,820 for buying and K2,850 for selling in the grey market.

However, the Central Bank of Myanmar (CBM) set the reference exchange rate for the US Dollar at K2,100. In order to strengthen the domestic currency in the local forex market, the CBM 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 K2,100 for buying and K2,106 for selling. However, those rates are not effective in trading for now. 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. Last September 2021, a dollar value hit a peak of over K3,000 in the black market, pushing pure gold up to K2.22 million per tical. Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability play a crucial role in the trade facilitation.

The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators.

Source: The Global New Light of Myanmar

Fuel oil prices sank following MOPS prices

by ENERGY

The price of Octane 92 slipped to K1,830 per litre tracking the plunge in the price index set by Mean of Platts Singapore (MOPS), according to the fuel oil market. The prices of fuel oil have gradually decreased since the end of November. On 1 December, the prices stood at K1,965 per litre for Octane 92, K2,040 for Octane 95, K2,380 for diesel and K2,455 for premium diesel. On 9 December, the prices extended their decline to K1,830 per litre for Octane 92, K1,925 for Octane 95, K2,125 for diesel and K2,200 for premium diesel. The figures indicated a drop of K110-255 per litre within ten days.

The domestic fuel prices are following the decline in 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. Following the MOPS price index, the prices peaked at K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,245 for diesel and K3,330 for premium diesel in late August. The committee is steering the oil sector effectively not to have a shortage of oil in the domestic market and ensure 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’ price assessment, shipping cost, profit margin, premium insurance 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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Myanmar ships 5,260 tonnes of rice directly from Pathein Port to Bangladesh in 2nd batch

by TRADING

According to the Government-to-Government pact between Myanmar and Bangladesh, Bangladesh has been purchasing Myanmar’s white rice. The country has shipped rice directly from Pathein Industrial City since 2 November 2022. Between 1 and 8 December, 5,260 tonnes of rice were loaded onto the two ships in the second batch and the MCL-12 ship carrying 2,650 tonnes of rice departed in the morning of 8 December 2022 from the Ayeyawady International Industrial Port AIIP in Pathein Industrial City, Ayeyawady Region to Bangladesh.

Earlier, Myanmar conveyed rice to Bangladesh through Yangon Port and Thilawa terminals. In the first batch from 2 to 22 November 2022, 10,565 tonnes of Aemahta rice (five-per-cent broken) were shipped by four ships directly from Pathein city to Bangladesh. The country delivered 2,610 tonnes of rice by MCL-19 ship on 1 December and 2,650 tonnes of rice by the MCL-12 ship on 8 December in the second batch, totalling 5,260 tonnes. On 7 December, the MCL-18 ship arrived at the   Ayeyawady International Industrial Port and further exports are to be undertaken.

Myanmar’s white rice direct delivery from Ayeyawady Region to Bangladesh accumulated 15,825 tonnes, with 10,565 tonnes in the first batch and 5,260 in the second batch. “The main export item from Pathein Port is rice. If Bangladesh buys corn in addition to rice, there is an adequate supply of corn in the region. Myanmar has indicated readiness to export corn depending on the market demand. The rice shipment for the second batch has finished. We plan to export agricultural products from Ayeyawady Region to foreign trading partners. For the initial stage, efforts are being made to complete the rice shipment first,” said U Tun Tun, deputy director of the Ayeyawady Region Consumers Affairs Department.

Earlier, the second batch of rice shipment was slated for the second week of December. However, Myanmar managed to ship the rice in the first week to Bangladesh as rice outputs from Ayeyawady Region increased.  All the stakeholders involved in a supply chain including the Ayeyawady Region Government, departments concerned and private businessmen are being exerted to meet the rice demand of Bangladesh to ship them directly from the region. The direct rice shipment from Ayeyawady Region, Myanmar’s rice bowl, to the foreign markets brings about economic opportunities for rice millers, farmers and traders and employment opportunities for local communities.

Source: The Global New Light of Myanmar

Real estate agents need registration certificates to run businesses

by ECONOMY

The Ministry of Home Affairs released a statement saying that property brokers need to have real estate registration certificates to run their businesses. The Central Committee for Anti-Money Laundering issued Notification 1/2022 for real estate agents on 9 November. The statement said that, aiming to prevent money laundering cases in Nay Pyi Taw, regions and states and self-administered regions, if the agents want to run services of renting and buying properties, they need to register and inform the money laundering cases to the Financial Intelligence Unit (FIU).

Those who run the property agencies are required to register from the township level and they need to get the document as proof of their attendance to the anti-money laundering and terrorist financing training course. They can make registration with the pledge that they will attend the advancing awareness training on bylaws, laws, orders and directives, copies of their bank account and bank statement, it stated. Moreover, they must record the data of their customers and pay tax under the existing tax law and bylaw.

They must be ready to send their service records if the Financial Intelligence Unit and other relevant organizations ask them for criminal cases. Regarding the remittance, they also need to follow the payment methods set by the authorities. If it fails, it must report to the Financial Intelligence Unit, it added. If they are suspected of breaking the Anti-Money Laundering Law, Counter-Terrorism Law and existing laws, their business will be suspended and reported to the FIU. If they fail to follow the directives, they will face legal action under the existing law, it said. 

Source: The Global New Light of Myanmar