Fuel prices rebound to K2,000 per litre

by ENERGY

The price of Octane 92 has gone up to K2,000 per litre again, according to the fuel oil market. The fuel prices fluctuated starting from the last week of September. On 5 October, oil prices fell to K1,880 per litre for Octane 92, K1,950 for Octane 95, K2,565 for premium diesel and K2,480 for diesel. The prices rebounded to K2,000 for Octane 92, K2,045 for Octane 95, K2,790 for premium diesel and K2,705 for diesel on 7 October, showing an increase of K100-200 per litre within two days. The domestic fuel prices are tracking the rise 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.

The committee is governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and ensuring price stability for energy consumers. The committee draws up Standard Operating Procedures (SOPs) on fuel import, storage and distribution and sends reports of fuel import matters to the Foreign Exchange Supervisory Committee. Last September, fuel importers had an import quota of 233,594.60 tonnes of fuel oil, with 80,499 tonnes of gasoline and 153,095.60 tonnes of diesel. The Petroleum Products Inspection and Supervision 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 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. 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 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

Myanmar food manufacturers need to seek mandatory GACC registration

by MANUFACTURING

Myanmar food exporters are required to be registered with the General Administration of Customs of the People’s Republic of China (GACC), according to the Ministry of Commerce. According to GACC Decrees 248 and 249, GACC registration is mandatory for food exporters starting from 1 January. That being so, Myanmar’s food products in 18 food groups such as meat products, fishery products, dairy products and edible bird’s nests, honey and honey products, eggs and egg products, edible oil, frozen food products, edible seeds and nuts, malted barley, fresh vegetable, dried beans, spices, hard nuts and seeds, dried fruits, coffee beans and cocoa beans, special nutritious food and supplements are required to be registered with GACC.

For GACC registration, the relevant authorities are the Agriculture Department, the Livestock Breeding and Veterinary Department (LBVD), the Fisheries Department and Food and Drugs Administration. Between 1 December 2021 and 30 September 2022, 1,850 applications of 1,022 companies and factories have been submitted to GACC. Among them, 1,711 applications by 883 companies were forwarded through the Agriculture Department, while 118 through the Fisheries Department, 12 through the LBVD and nine through the FDA. Exporters can directly access China International Trade Single Window through https://cifer.singlewindow.cn by creating accounts for those food groups which are not listed on those 18 groups. 

Source: The Global New Light of Myanmar

Trafigura’s Puma Energy to sell Myanmar business to local private company

by ENERGY

Trafigura’s Puma Energy, which is the main supplier of aviation fuel in Myanmar, has signed an agreement to sell its stake in Myanmar to a local private company, according to the official statement on 5 October.

Following a board decision to exit Myanmar earlier this year, Trafigura’s Puma Energy has signed an agreement to sell its stake in Puma Energy Asia Sun (PEAS) and National Energy Puma Aviation Services (NEPAS) to a locally owned private company.

National Energy Puma Aviation Services Company (NEPASC), a joint venture between Singapore-based Puma Energy and state-owned Myanmar Petrochemical Enterprise, has executed the jet fuel business since 2015.

Source: The Global New Light of Myanmar

Individual entitled to buy seven visses of gold: MGEA

by ECONOMY

The Mandalay Region Gold Entrepreneurs Association (MGEA) will sell about seven visses of gold (seven gold bars) each to individual in a bid to reduce the gold price. A gold bar weighs 10 ticals (one viss equals 100 ticals). The sales of pure gold bars will start on 7 October. The gold buyers can purchase them at the office of MGEA located on 67th street between 40thx41st streets in Mahaaungmyay Township, by presenting a citizenship scrutiny card. The association stated that they will offer a cheaper price in an attempt to control the volatile gold price.

The price of gold will be declared only at 2 pm on 7 October. Except for the members of the MGEA, anyone is free to buy them. At present, the price of pure gold ticked up to K2.6 million per tical (0.578 ounce or 0.016 kilogramme) in the domestic markets, tracking the mild rebound in gold spot prices in international markets and Kyat weakening against the US dollar. The soaring dollar exchanging at over K4,500 pushed up the pure gold price to a record-high of K3.7 million per tical in late August. The Ministry of Natural Resources and Environmental Conservation is, therefore, selling gold bars and coins in order for the gold price to ease.

Furthermore, the governor of the Central Bank of Myanmar (CBM) and officials of the Monitoring and Steering Committee on the Gold and Currency Market discussed matters regarding the stability of the gold and currency market and supporting plans of the banks for gold bar transactions to be made with banking system on14 September in Nay Pyi Taw. Then, on 30 September, the seven private banks opened special counters at the designated 48 branches to offer banking services for gold transactions.

According to CBM’s directive (43/2021) dated 3 November 2021, lump sum payments worth more than K20 million for buying or selling assets have to be processed with the banking system. The seven private banks are providing banking services by opening special counters at their 48 branches in Yangon and Mandalay regions and Mon State (Mawlamyine) to facilitate gold transactions with the banking payment system. Those banks are Kanbawza Bank (KBZ Bank), Co-operative Bank (CB Bank) PCL, Ayeyawady (AYA) Bank, Myanmar Apex Bank (MAB), UAB Bank, Yoma Bank and Ayeyawady Farmers Development Bank (A Bank).

Source: The Global New Light of Myanmar

CBM says banks won’t hike interest rates amid excess bank reserves

by ECONOMY

The banks will not hike the interest rate and there are excess bank reserves for now, according to a statement (9/2022) of the decisions of the Monetary Policy Committee of the Central Bank of Myanmar (CBM) meeting. In order to tackle inflation, the committee considered whether it should raise interest rates or not.  The economic growth in the 2021-2022 financial year was 2.4 per cent, which is lower than the target of 3.7 per cent.

The committee decided at a meeting (5/2022) held on 30 May 2022 not to raise the interest rates as the country missed economic targets, cash deposits at the banks are declining, bank credit expansion still cannot happen and the currency in circulation of the banking industry just starts off. For the ease of inflation, the committee made the Minimum Required Reserves (MRR) ratio remain unchanged at 3 per cent after mulling over banking operations.

The committee raised the current account balance (CAB) of the bank institutions at the Central Bank from 2.25 to 2.5 per cent and lowered the bank reserves (cash) from 0.75 to 0.5 per cent. This way, the cash physically held by the banks will be deposited to the CBM and modifying reserve requirements will reduce the currency in circulation (CIC) and hope to steer the volatile inflation rate, as per the statement. Additionally, bank reserves are exceeding at present.

As the bank credit expansion cannot still happen, the committee decided to set an interest rate on the average excess CAB. The statement said it will initially create an interest rate corridor for the money market. Furthermore, to steer inflation, the committee also discussed issuing the CBM Bill as a monetary policy instrument. Regarding issuing CBM Bill, taking everything into account, advantages, procedures, setting face value and interest rate, types of issuing and payment methods were raised at the meeting and the committee determined to make the necessary preparations.

Source: The Global New Light of Myanmar

Thailand grants Myanmar citizens 45-day visa-free stay

by HOTEL & TOURISM

Thailand has announced the extension of a visa-free period for Myanmar citizens from 14 days to 45 days, according to the statement of its Ministry of Foreign Affairs.

The Thai government extended the visa-free period for foreigners entering the country to 45 days from 30 days starting October 2022, and Myanmar citizens are also on the list for a 45-day visa exemption stay period. According to the bilateral agreement, any Myanmar passport holder is also among those who will be granted 45 days of visa-free stay in Thailand.

When the Thai government granted up to 30 days of visa-free stay to foreigners entering the country, Myanmar citizens were allowed only 14 days but could stay for 60 days with tourist visas. The announcement was issued by the Royal Thai Embassy in Ottawa, Canada on 30 September. But, the Thai Embassy in Myanmar has not released such an announcement yet. 

Source: The Global New Light of Myanmar

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Imports indicate increase of $1.55 bln as of 23 September this FY against that of mini-budget period, MoC reports

by TRADING

The value of Myanmar’s imports between 1 April and 23 September of the current financial year 2022-2023 surged to US$8.159 billion, which reflects a sharp rise of $1.55 billion compared to the year-ago period, the Ministry of Commerce’s data indicated. The import value stood at $6.6 billion in the corresponding period of the past 2021-2022 mini-budget period.

The imports of capital goods and consumer goods declined, while the other import groups (intermediate goods and CMP businesses) witnessed a slight increase. The capital goods, such as auto parts, vehicles, machines and steel were brought into the country. The import value was estimated at $1.46 billion as of 23 September this FY. The figure was over $332 million lower than the value registered in the same period of the previous mini-budget period.

Meanwhile, Myanmar imported consumer products worth $1.49 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $207.9 million compared with the same period in the previous FY. Intermediate goods make up the largest share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items.

This year, imports of raw materials climbed up to $3.8 billion from $2.399 billion registered during the year-ago period. During the same period, raw materials worth over $1.34 billion were also imported for the garment sector on the cut-make-pack (CMP) basis, showing an increase of $626.45 million compared with the same time of the last mini-budget period, as per data from the Ministry of Commerce.

Source: The Global New Light of Myanmar

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7 private banks provide services with special counters for gold transactions

by SERVICES

According to the Central Bank of Myanmar’s statement, seven private banks are providing banking services by opening special counters at their designated branches in Yangon and Mandalay regions and Mon State (Mawlamyine) to facilitate gold transactions with the banking payment system.

Kanbawza Bank (KBZ Bank), Co-operative Bank (CB Bank) PCL, Ayeyawady (AYA) Bank, Myanmar Apex Bank (MAB), UAB Bank, Yoma Bank, Ayeyawady Farmers Development Bank (A Bank) are providing banking services with 48 branches.

They are nine branches of KBZ Bank each in Yangon and Mandalay regions and one in Mawlamyine city; three of CB Bank PCL in Yangon, two in Mandalay and one in Mawlamyine; two of AYA Bank in Yangon and one each in Mandalay and Mawlamyine; two of MAB in Yangon, four in Mandalay and one in Mawlamyine; 3 of UAB Bank in Yangon and one each in Mandalay and Mawlamyine; one of Yoma Bank each in Yangon, Mandalay and Mawlamyine; two of A Bank in Yangon and one each in Mandalay and Mawlamyine respectively.

According to CBM’s directive (43/2021) dated 1 November 2021, lump sum payments worth more than K20 million for buying or selling assets have to be processed with the banking system. 

Source: The Global New Light of Myanmar

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Myanmar goods exports surpass larger than imports as of 23 Sept

by TRADING

The value of Myanmar’s goods exports was relatively higher than those of imports between 1 April and 23 September in the current financial year 2022-2023, according to statistics provided by the Ministry of Commerce. Myanmar’s trade gap significantly shrank to US$0.024 million this FY from $234 million registered in the corresponding period of the 2021-2022 FY. In the nearly a half of the FY, the value of Myanmar’s external trade soared to $16.3 billion from $13.45 billion recorded in the year-ago period.

While exports were estimated at $8.159.057 billion, imports were valued relatively low at $8.159.033 billion during April-Sept period. Compared to the FY 2021-2022, exports showed an increase of over $1.3 billion, while import value was up by $1.55 billion. Myanmar’s maritime trade value edged up to $12.5 billion in the nearly past six months from $9.5 billion recorded in the same period last year yet the country witnessed a small drop of $135 million in border trade as cross-border trade with the main trade partner China has not returned to normal amid the strict virus policy.

Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.  The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution.

Source: The Global New Light of Myanmar

Kyat stronger against foreign currencies in market; Kyat-dollar exchange rate slides to K2,800

by ECONOMY

Kyat has strengthened against foreign currencies in the forex market. A dollar is exchanged for around K2,800. The hard currency US dollar hit a high of over K4,500 in the forex market in August-end. The current exchange rate is around K2,800 on 29 September. Similarly, a Chinese Yuan was worth K580 in August. On 29 September, the exchange rate of the Chinese Yuan fell to K400. Additionally, a Thai Baht was exchanged for K100 and K100,000 was valued at only 850 Thai Baht last month. On 29 September, the exchange rate of the Thai Baht against Kyat was K75 and K100,000 was converted into 1,330 Thai Baht.

Consequently, Myanmar Kyat rose in the forex market these days. The soaring exchange rates against the local currency last month caused the imports to nearly come to a halt, importers said. That being so, agricultural machinery and related equipment were exempted from obtaining import licence from 1 September, the Trade Department under the Ministry of Commerce notified on 31 August. In a bid to support the country’s agricultural development and facilitate the imports of agricultural machinery, 70 HS lines concerning the agricultural machinery and equipment were eased from licensing requirements.

Between 1 April and 16 September in the current financial year 2022-2023, goods worth $6.82 billion by sea and goods worth $978 million were imported into the country. Imports of consumer goods, capital goods, intermediate goods and raw materials by CMP businesses accumulated to US$7.79 billion. In the corresponding period last FY, Myanmar imported goods worth $6.345 billion from foreign trade partners, with maritime imports valued at $5.027 billion and imports through border channels worth $1.317 billion. Sea-borne imports were up by $1.78 billion yet border imports declined by $339.9 million compared to those recorded in the corresponding period last year. 

Source: The Global New Light of Myanmar