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Myanmar and China negotiate resumption of Kyalgaung border

by TRADING

Authorities from Myanmar and China discussed the reopening of the Kyalgaung border post. China has restricted border access through the Muse-Kyalgaung (Mang Wein) border posts, which is a major border crossing between Myanmar and China amid the COVID-19 cases since 30 March 2021. On 18 October, Myanmar’s officials and counterparts from Tathong, Yunnan Province negotiated the promotion of bilateral cross-border trade through videoconferencing.

The meeting highlighted the resumption of the Kyalgaung border post, implementation of container transport to facilitate the trade along the Muse-Ruili route, the direct Yuan-Kyat trade, seeking the permit for legitimate exports of avocado, pineapple, pomelo, lemon and sweet potato from the General Administration of Customs of the People’s Republic of China (GACC) at the soonest, giving green light to Myanmar trucks carrying sugarcane as the sugarcane season is approaching and the ease of the COVID-19 restriction measures in the border areas.

Before the pandemic, Kyalgaung was the busiest and biggest trade post and it performed the highest trade on the China-Myanmar border. Those traders involved in the Muse trade zone are relying on 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 the Muse border checkpoint. Only when the Kyalgaung border post is reopened can the trade boom, traders elaborated. China shut down all the checkpoints linking to the 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, rubber, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt with about 70 trucks and building materials, electrical appliances, pharmaceuticals, fertilizer, household goods and industrial raw materials are imported into the country with 30 trucks. Myanmar has opened five border trade zones with China; Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through the Muse land border, Ministry of Commerce’s data indicated.

Source: The Global New Light of Myanmar

Myanmar has been blacklisted by the International Money Laundering Monitoring Group (FATF)

by ECONOMY

Myanmar has been blacklisted by the International Money Laundering Monitoring Group (Financial Action Task Force – FATF). After the FATF meeting attended by representatives from more than 200 countries, including the World Bank and Interpol International Police, the Singaporean officer who chaired the FATF announced the inclusion of Myanmar in the blacklist.

Money laundering, the Paris-based FATF group formed by the Group of Seven developed countries. terrorist financing; Established in 1989 to protect against similar threats to the integrity of the global financial system, the group has added Myanmar to its blacklist, where only two countries were previously blacklisted, namely North Korea and Iran.

The blacklisting is expected to deal a blow to efforts to attract foreign investment after the military took over power in February 2021. Basically blacklisting Myanmar banks, With financial institutions, there will be more difficult notifications for international financial matters. This year, the value of the Myanmar kyat has fallen by about 60 percent compared to the dollar, a series of record-breaking devaluations, and it is on the verge of falling again.

Foreign direct investment inflows reached their lowest level in 2021 since Myanmar opened its doors to foreign investment in 2011. Even if the political crisis occurs, Foreign investors and worsening power outages; Policies that forced foreign currency to be exchanged for Myanmar kyats have scared away investments that are vital to the country’s thriving economy. The World Bank predicts that Myanmar’s GDP will stagnate this year after the economy shrank by nearly 20 percent in 2021. Furthermore, the International Labor Organization estimated that 1.6 million jobs were lost in Myanmar last year.

Source: The Global New Light of Myanmar

Nearly six million gallons of fuel oil are being dumped at Thilawa port, and based on the remainder of the Yangon Thilawa oil tank, it is announced that there is self-sufficiency in fuel

by ENERGY

Nearly six million gallons of fuel oil are being dumped in Thilawa port, and the remainder of the Yangon Thilawa oil tank, The Motor Fuel Import, Storage and Distribution Business Supervisory Committee has announced that there is self-sufficiency in motor fuel according to the remaining conditions of motor fuel stores and distribution. On October 17th, the MT ARDBEG ship loaded 92 Ron 0.42 million gallons of gasoline and 2.80 million gallons of premium diesel oil at the terminals in Thilawa Port, Yangon Region, on October 17th. MT Glory Star ships 1.22 million gallons of regular diesel and 1.50 million gallons of premium diesel. It is reported that the oil spill is being carried out.

As of October 16, Yangon Thilawa oil reservoir balances; It has been verified that there is self-sufficiency in fuel according to the balance of fuel stores and distribution. As for fuel prices, the global fuel prices have decreased slightly this week, while domestic fuel prices have remained stable. In order to ensure domestic fuel sufficiency, the Motor Fuel Import, Storage and Distribution Supervisory Committee conducts regular checks and imports according to type of motor fuel. On October 10, 92 Ron 0.02 million gallons of gasoline and 2.80 million gallons of premium diesel from the MT YU DONG ship at the Terminals in Thilawa Port, Yangon Region. 

92 Ron zero 14 million gallons of gasoline were also unloaded from MT Bowmore. On October 3, MT YU HAI unloaded 1.87 million gallons of 92 Ron gasoline and 3.18 million gallons of premium diesel at Termianl in Thilawa Port. On October 18, 2675 kyat per liter of diesel in Yangon region. 1955 kyats per liter of octane 92; Octane 95 was 2025 kyats per liter.  As for domestic fuel prices, on October 11, 2022, diesel was 2,800 kyats per liter. Octane 92 is 2025 kyats per liter. Octane 95 was 2,080 kyats per liter. 2,460 kyats per liter of diesel on October 1.

Octane 92 is 2045 kyats per liter. Octane 95 was 2115 kyats per liter. On September 24, 2,645 kyats per liter of diesel. Octane 92 is 2150 kyats per liter. Octane 95 was 2,225 kyats per liter. As the business supervision committee publishes the reference prices of motor oil daily, the MOPS price published daily by Singapore keeps the fixed exchange rate of the Central Bank of Myanmar. Premium underestimate profit percentage calculated and released based on the transportation costs (Transport Charges). As the business supervision committee, in cooperation with the Myanmar Fuel Import, Sales and Distribution Association, the relevant region, According to the state’s townships, fuel needs are distributed based on fuel balance.

Source: The Global New Light of Myanmar

Unauthorized money changers face legal action for illegal transactions

by ECONOMY

Those individuals involved in selling, buying and transactions of foreign currency without holding a foreign exchange business licence are facing legal action, according to the Central Bank of Myanmar (CBM). Those two businesses (Perfect Money and B to P Money Exchange) were found to execute illegitimate transactions of foreign currency through the digital platform (Facebook) without holding any valid licence of the CBM. They have been sued under Section 42 of the Foreign Exchange Management Law for breach of the provisions of Section 38 of the Foreign Exchange Management Law, according to the statement.

Afterwards, those entities engaged in illegal foreign exchange through the respective Facebook pages (Black Market Rate, USD Exchange Rate, Gold and Forex Trading, Gold and Dollar Market Dollar Buyer and Seller were found to violate the provisions of Section 38 of the law and the operators of those businesses will get sued under the Section 42 of the Law. On 12 June 2022, the CBM notified the people of the unauthorized mobile pay/ mobile wallet and digital money transfer businesses not to have unnecessary losses.

The CBM greenlighted 18 commercial banks, 10 banks for internet banking, eight banks for mobile payment, five institutions for mobile financial service, seven entities for transportation card and shopping card payment, and four companies for MMQR of merchant acquiring service under Sections 40 and 79 of the Central Bank of Myanmar Law, Section 5, 129 and 130 of the Financial Institutions Law, rules and directives of the mobile financial service and mobile banking business and e-payment to ensure safe and effective transaction and regulate the financial sector.

The list of those companies and financial institutions and service providers is notified on the official website of the CBM. At present, illegal mobile money service providers are posted on social media for mobile pay/mobile wallet service, transfer service between clients and payments for transactions of goods and services. The CBM warned the people of illegal transactions and digital financial service providers so that they will not lose their money. Those individuals involved in this will face a fine and/or sentence under Section 172 of the Financial Institutions Law, the CBM stated.

Source: The Global New Light of Myanmar

Myanmar manufacturing sector attracts $129 million from China in H1

by MANUFACTURING

A total of 29 foreign enterprises pumped US$129 million into Myanmar’s manufacturing sector in the first half 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 $1.24 billion from 39 enterprises during the April-September period. The majority of the investments were brought into the manufacturing sector. The power sector received $702.4 million from six projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $378 million in the service sector respectively.

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 program 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 will be launching the voluntary labour compliance assessment-VLCA Online System in 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. 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-dollar exchange rate hits K2,900 in market despite CBM’s reference rate of K2,100

by ECONOMY

A Kyat-dollar exchange rate rose to K2,900 in the black market, while the Central Bank of Myanmar (CBM) set the reference exchange rate 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 Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying on 10 August 2022. Therefore, financial institutions including banks and informal money exchanges set a dollar value of K2,100 for buying and K2,106 for selling.

In spite of the trading band, the dollar transaction was made with the buying price of K2,930 and the selling price of K2,980 in the grey market. Additionally, 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 control the soaring dollar. A total of $443.8 million were sold at an auction rate in 2021 as well. Last 28 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

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Myanmar conveys over 983,780 MT of rice to external markets in H1

by TRADING

Myanmar shipped 983,782.7 metric tons of rice and broken rice to foreign trade partners in the first half (April-September) of the current financial year 2022-2023, with an estimated income of US$339 million, according to Myanmar Rice Federation (MRF). In the past six months, more than 40 exporter companies delivered over 773,446.7 MT of rice and broken rice to external markets by sea, whereas over 210,335 MT were sent to neighbouring countries via border trade camps.

Myanmar shipped rice and broken rice to regional countries, countries in Africa and European Union member countries through maritime trade. It is also exported to neighbouring countries, China and Thailand through cross-border posts. Myanmar exported rice to over 20 foreign markets in the past months, mostly to China (123,520 MT) and the Philippines (101,259 MT). Additionally, Myanmar primarily conveyed over 191,967 MT of broken rice to China and 140,893 MT to Belgium. The prices of high-grade rice varieties stood at K60,000-90,000 per bag and K35,500-45,000 per bag for low-grade rice varieties.

The prices of low-quality white rice varieties were approximately US$340-360 per MT depending on the different varieties and quality in September. The export price of Myanmar’s rice was relatively lower than the rates of Thailand and Viet Nam, according to MRF. Myanmar has shipped more than 1.4 million tonnes of rice and broken rice to foreign trade partners between 1 October and 31 March in the past mini-budget period (2021-2022), the Myanmar Rice Federation stated. Myanmar bagged US$700 million from two million tonnes of rice exports to foreign countries in the past 2020-2021 financial year. 

Source: The Global New Light of Myanmar

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Anti-Covid medicine successfully produced

by COVID

Anti-Covid medicine will be produced when an order is received from the Ministry of Health, according to the Myanma Pharmaceutical Industry, Ministry of Industry.

Myanma Pharmaceutical Industry produces various kinds of medicines, including Covid vaccines, for the Ministry of Health and has been producing K55 billion worth of COVID vaccines since the outbreak of the pandemic. Paclovid (Nirmatrelvir 150 mg + Ritonavir 100 mg) is a kind of Covid drug.

A packet of Paclovid (30 capsules) costs K250,000 and is available only on prescription, according to Pacific Medical Industries. Pacific Medical Industries Ltd successfully produced the medicine with Myanmar FDA recommendation number (2308ND 012). The medicine is also recommended by WHO, US FDA, UK MHRA, Korean FDA, and Singapore FDA.

Source: The Global New Light of Myanmar

YBS

Plan underway to reduce YPS card fare by 20 kyats

by SERVICES

The Yangon Region Public Transport Committee-YRTC is working on a payment service aimed at facilitating the payment of public transport lines in Yangon Region, and Yangon Payment System (YPS) card shops are opened more so that passengers can make purchases easily. For those wishing to use the YPS card can buy the cards at over 60 shops including shops in front of Yangon City Hall, in front of Myanmar Plaza Stop, in front of Yuzana Plaza Plaza, Hledan Bus Stop, on Insein Road, Thakin Mya Park, Tamway Roundabout Bus Stop, YUPT of YPS stores, and Bandoola Housing.

“It is quite difficult to top up the card. There is no store where you can top up money wherever you want. It is difficult in many places. Instead of keeping it in stores, I would like to use a system that can be used to top up money through Mobile Pay, which is applied by many people. To find a shop I think it would be more convenient to go with the Mobile Pay system without wasting time,” said Ko Zarni Tun of Dagon Myothit (South) Township told the GNLM. Before, topping up on buses, you can get promotions that you can buy the card, but now you don’t see much,” he added.

YRTC and Asia Starmark Transport Intelligent Co., Ltd (ASTI) are working together to promote the widespread use of the YPS card system. In addition, G&G Convenience Store in partnership with Asia Starmark Transport Intelligent (ASTI) started selling YPS cards at more than 100 branches in Yangon. An official from the YRTC said that in order to encourage YBS bus riders to use the card system more, those who use the card system have been given a discount of 20 kyats per card for a one-way trip compared to the regular fare.

“If you use the card system, 200 kyats will be reduced by 20 kyats. We do this because we want to use the YBS card. Picking up fares according to the stop, in the past, the middle stop was set, and then each side was divided in a half. Now that’s not the case anymore. Since there are 30 stops from beginning to end, I will only pick up fare for 15 stops. It’s not expensive,” he added. It is reported that the number of YPS cards sold is about 150,000, and the number of cards in use is still more than 90,000.

Source: The Global New Light of Myanmar

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Myanmar foreign trade soars to over $17 bln in H1

by TRADING

Myanmar’s external trade in the first half of the 2022-2023 Financial Year tremendously edged up to US$17.08 billion, reflecting a sharp increase of $3 billion as against the year-ago period, according to the Ministry of Commerce.

The figures surged from $14.078 billion in the corresponding period last year. Myanmar’s export was worth over $8.56 billion whereas the country’s import was valued at $8.52 billion over the past two months. The border trade dropped owing to China’s strict virus rules and security in transport amid the political changes, with a decrease of $89.8 million in cross-border trade as against the year-ago period.

However, the maritime trade registered a significant rise of $2.257 billion in nearly four months. The external trade stood at $15.5 billion in the past mini-budget 2021-2022 (Oct-March) period and $29.58 billion in the 2020-2021 FY, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar