Fuel prices stable on high side

by ENERGY

Fuel prices continued to spike in recent days and it is stable on the high side, according to the fuel price market. Fuel prices started to spiral on 8 August 2022. Between 13 and 15 August, the prices remained unchanged on the high side. The prevailing fuel prices stood at K2,320 per litre for Octane 92, K2,390 for Octane 95, K2,730 for premium diesel and K2,655 for diesel. The upward spiral of the fuel prices is attributed to the continuous depreciation of the Kyat against the US dollar. Despite the Central Bank of Myanmar’s reference exchange rate of K2,100, a dollar is valued at K2,900 in the grey market.

The Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil stated that surging fuel price is following an increase in the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia. 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. Some fuel stations in regions and states are facing short supply and the fuel price skyrocketed.

The Petroleum Products Regulatory 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’ 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 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

Kyat extends slump against Thai Baht

by ECONOMY

Myanmar Kyat continues to spiral and the exchange rate against the Thai Baht touched a high of K80 in the local forex market, forex price data indicated. In early July, the exchange rate for a Thai Baht was valued only at K60, and 1,670 Baht was exchanged for K100,000. On 15 August, the Baht-Kyat exchange rate was 1/80 and 1,300 Baht was worth K100,000. The plunge in exports at the Myawady border post is a contributing factor to the slumping Kyat value. Thai Baht shortage in the border areas resulted in Kyat depreciation, traders on the Myawady border were quoted as saying.

Of the primary export items at the Myawady border post, corn exports drastically dropped. Although Myanmar earlier exported 150,000 tonnes of corn per month, only 30 per cent of that volume was delivered in July, said U Aye Chan Aung, chair of the Myanmar Corn Industrial Association. The directive released on 30 June said that transactions for the exports of agricultural products including corn, rice, bean and oil crops are to be made in dollars instead of Yuan-Kyat/Baht-Kyat.

Additionally, foreign currency earnings are set to be converted into local currency at the reference exchange rate of the Central Bank of Myanmar. However, there is a large gap between the regulated rate and the unauthorized rate. This action affected exports of agricultural products and trade dropped. Moreover, Myanmar’s imports on the Myanmar-Thailand border also nearly came to a halt due to the large capital input. Starting 13 August, the authorities concerned have been inspecting and interrogating some money changers accordingly.

Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on the Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability play a crucial role in 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, 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 official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators.

Source: The Global New Light of Myanmar

Myanmar pharmacy body seeks prevention of medicine shortages

by ECONOMY

As the medicines and essential drugs prices become high in the market, arrangements are being made not to cause medicine shortages, according to the statement of the Myanmar Pharmaceutical and Medical Device Manufacturer Association released on 13 August. It said the association has imported the required medical supplies and urged the pharmaceutical companies, wholesalers and retailers to sell the medicines as usual.

As the prices of medicines become high continuously, the wholesale centres in the Mingala Market shut down as they cannot run properly, according to the sellers. With the changes in the exchange rate and import policy, medicine prices were on the rise starting in early August. The wholesale centres suspend sales and so the retailers face hardships, said Ko Min Min, a medicine dealer. “The prices are drastically high and they suspend the sale temporarily. If we now sell the medicines we bought before the prices were high, we face losses. The more we sell, the more we lose. We don’t get the amount that we want,” he said.

The demand for pain killers and drugs for diabetes, hypertension, heart disease and for kids is on the rise and some medicines are out of stock. “The prices of medicine for diabetes and heart disease are higher about K1,000/1,500 than before per capsule card. We can’t predict how much the prices will go up. Some hospitals face shortages of medicine stocks,” said Daw Tin Win from North Okkalapa Township. The association also urged the entrepreneurs to import the required medicines and medical supplies as quickly as possible as the officials negotiated the proper medicine import policies.

Source: The Global New Light of Myanmar

c1_1386446_171227065508

Myanmar conveys $53.04 mln worth fishery products to Thailand through three border posts in past four months

by TRADING

Myanmar delivered fishery products to Thailand through three border posts in the past four months (April-July) of the current financial year 2022-2023, with an estimated value of US$53.04 million, according to the statistics released by the border posts. Fisheries exports via the Myanmar-Thailand border trade channel have returned to normal. The export volume of fishery products via three border posts and Htikhee, Mawtaung and Kawthoung is estimated at over 46,930 tonnes in the past four months.

During April-July 2022 period, trade value stood at $10.14 million at Htikhee border post, over $0.9 million at Mawtaung post and over $42 million at Kawthoung post, according to the trade data released by Myanmar Fisheries Federation. Trade volume in the corresponding period of the 2020-2021 FY was only 84,000 tonnes, which was still lower than the volume recorded in the same period of 2021-2022 mini-budget period.

Myanmar shipped over $181 million valued fishery products to foreign markets between 1 April and 22 July of the current FY 2022-2023, as per the Department of Fisheries. Myanmar exports raw aquaculture products from farms and caught by onshore and offshore fishing businesses to the external markets. Additionally, aquaculture products are also exported after being processed at the cold storage facilities. The Department of Fisheries and Myanmar Fisheries Federation are working together on fishery export promotion beyond self-sufficiency.

Source: The Global New Light of Myanmar

YGEA set gold price at over K2.1 mln per tical on global gold market trends

by ECONOMY

As gold price climbs in international markets, pure gold price set by Yangon Region Gold Entrepreneurs Association has gained to over K2.1 million per tical (0.578 ounce, or 0.016 kilogramme). In early August, gold prices stood at only US$1,770 per ounce in global markets. On 13 August, the price jumped to $1,802 per ounce. The domestic gold prices have risen accordingly. On 13 August, YGEA set the precious yellow metal at K2,101,000 per tical.

Nonetheless, the prices reached record-high of around K2.6 million per tical in the grey market.
The rising gold prices are attributed to the effect of the continuous Kyat depreciation in the local forex market. The unofficial exchange rate against the dollar is estimated at around K2,800 in the markets.
The association determined the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, said U Myo Myint, chair of YGEA.

Therefore, there is a gap of over K500,000 between the set price of YGEA and the informal market price. Consequently, the cross-border illegal market has arisen again. The soaring safe-haven dollar value against the weakening Kyat in the domestic forex market halted pure gold bar transactions as well, U Myo Myint stressed. Next, the authorities also interrogated some gold traders and currency exchange operators in end-July.

During the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a high of K2.22 million per tical. The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is a compliance to payment rules or not in the domestic market, proceeding against those unscrupulous traders who intend to interfere in 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

14

Billing system of collecting bus fare of YBS depending on stops on five-day test

by SERVICES

Bus fare collection on YBS payment cards will depend on number of bus-stops for five days, and initially, YBS 28 and YBS 29 lines will start working as a pilot test from 13 August, according to the YBS authorities.
The bus fare will be based on the number of stops by specifying the beginning of the gate, the middle of the gate, and the end of the gate. It will be started as a pilot test from 12 to 18 August and if it is convenient, it is planned to be implemented from 19 August.

Any stop will be charged 200 kyats according to the current fare format on the YBS-28 (Dagon University to Sule City Hall) bus line, starting from the starting stop and up to a total of 25 stops. A total of 300 Kyats will be deducted from the card if the journey exceeds 24 stops from the start of the bus stop. Similarly, any stop on the YBS-29 (Shwe Paukan Bridge to Sule City Hall) bus line will be charged 200 kyats from the starting stop up to a total of 33 stops. A trip that exceeds a total of 32 stops from the bus stop will cost 300 kyats. From 12 to 18 August, the Dilet Test system will be tested for five days only, and if it is effective, YPS card users will be able to make accurate fare payments using the YPS card based on the number of stops from 19 August.

It is reported that the previously fixed fare (Flat Fare) will now be changed to a fare (Distance Fare) which will be charged based on the distance traveled. YUPT Company announced in early August that if passengers will pay the fare with the YPS card, they will have to pay the fare with the card once to get on the bus and once to get off. As for the fare collection, it will cost 200 kyats if the trip is half way from the gate. It is planned to charge 200 kyats from any trip to the end of the gate and 400 kyats for the whole trip. If passengers pay for the start-to-end of the trip with the YPS card, the fare will be reduced by 5% discount and will cost only 380 kyats. A total of 116 YBS bus lines are transporting about 121,230 passengers with 3,172 buses in all townships in Yangon.

Source: The Global New Light of Myanmar

Transport security important for smooth and swift flow of marine products into Yangon market

by ECONOMY

The waterway transport sector plays a key role in the inflow of various marine products and swift and smooth flow of commodities into the Yangon fish market which is a distribution hub of marine products to Yangon Region as well as to other regions and states on a daily basis. Freshwater and seawater marine products from the Ayeyawady Region flow into two fish markets in Yangon – Central Sanpya Fish Market and Shwepadauk Fish Market. In order to meet the local demand for marine products, freshwater fish products are being produced. But heavy rains may inundate fish farms, causing loss and damage.

Hence, local fish farmers net fish at the fish farms before the monsoon and reduced the number of fingerlings at the farms due to the high prices of aquafeeds. Consequently, the inflow of freshwater rohu and sturgeon into the market declined in July and August less than in the remaining months. Two kinds of fish are taking market shares in local consumption of Yangonites and those from the countryside. Fish farmers transport their aqua products to the Yangon market along Twantay Canal but they unexpectedly face some cases of extortion of marine products and money as robberies committed by unscrupulous persons along the route.

As such, they encounter difficulties in waterway security measures. “In fact, the Central Sanpya Fish Market and Shwepadauk Fish Market are of importance not only for Yangon Region but for marine product consumption of the whole nation. Regularly, more than 300,000 visses of freshwater products and some 100,000 visses of seawater fish products flow into the markets. This month, the volume of marine products dropped in the markets. Although seawater products flow into the market on tidal days, as usual, the inflow process of freshwater fish into the market faces some difficulties with security measures. So, motor schooners do not accept hire for transporting the fish products.

Moreover, the shortage of labour to be assigned to transport fish products is one of the punches on the fish farmers when they pass the Twantay Canal. So, marine products do not flow into the market in competitiveness. After enquiring about the market situation, they decided things whether they should send their products to the market or not. Only when they firmly contact the purchasers will they do their business. As a result, the volume of freshwater fish products declines more its flow into the market,” said U Aung Kaung Kywe from the Myanmar Food Part Co Ltd.

Various freshwater fish species such as sturgeon, rohu, Barbus, tilapia and river catfish and seawater fish species namely tuna, bummalo, catla, and seawater shrimps are primarily sent to the Yangon fish market from fish farms in Twantay and Maubin fish firms. More than 500,000 visses of marine products flowed into the Yangon fish market on a daily basis but more than 250,000 visses of marine products enter the market now. If the road transport for freshwater marine products leading to the Yangon fish market is safe, local fish farmers will have a chance to cut the transport charge, contributing much to the inflow of a larger volume of freshwater products to Yangon. 

Source: The Global New Light of Myanmar

payment-gateway-in-singapore

Singapore tops FDI in Myanmar in past four months

by INVESTMENT

Eight Singapore-listed enterprises brought in large investments of US$1.086 billion into Myanmar in the past four months (April-July) of the current financial year 2022-2023, the Directorate of Investment and Company Administration’s statistics showed. Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors.

Hong Kong SAR stood as the second-largest investor this FY with an estimated capital of over $64 million pumped by five projects. China is ranked third in the investment line-up with more than $55.7 million.
One enterprise each from Belize and Japan also made investments in the past four months respectively. The existing enterprises from China Taipei, China, Hong Kong SAR, the Republic of Korea, India and Thailand also increased investments.

Myanmar Investment Commission gave green light to 29 foreign projects, with an estimated capital of $1.22 billion during the April-July period, DICA’s statistics indicated. Those enterprises are to execute in manufacturing, power, real estate and service sectors respectively. 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), according to the statistics released by the DICA.

Singapore stood as the largest foreign investor in Myanmar in the previous years, pulling in the FDI of $1.85 billion in the FY2019-2020, $2.4 billion in the FY2018-2019, $724.4 million in the mini-budget period (April-September, 2018), $2.16 billion in the 2017-2018FY, $3.8 billion in the 2016-2017FY, $4.25 billion in the 2015-2016 FY, $4.29 billion in the 2014-2015FY, $2.3 billion in the 2013-2014FY and $418 million in the 2012-2013FY respectively. Additionally, Singapore emerged as the second largest foreign investor in the Thilawa Special Economic Zone, after a top investor Japan.

Source: The Global New Light of Myanmar

Fuel prices exceed K2,000 on 11 August

by ENERGY

In the first week of August, the price of 92 fuel was around K1,600 per litre, and on 11 August, it rose to K2,140, which increased by more than K540 in four days, according to the reference prices of the Fuel Import, Storage and Distribution Supervisory Committee. After the shortage of some types of fuel in the market on 7 August, the prices of (premium) diesel and Octane 92 Ron skyrocketed when the market opened yesterday. In the Yangon fuel market, 92 Ron per litre was only K1,615 on 7 August, and it reached K2,140 on 11 August.

According to the reference price of the Fuel Import Storage Distribution Supervisory Committee, 92 Ron is reaching K2,180 to K2,720 per litre in Yangon, Mandalay, Nay Pyi Taw, Bago, Magway, Dawei, Monywa, Pathein, Hpa-An, Mawlamyine, Myitkyina, Sittway, Lashio, Taunggyi, Loikaw, and Kengtung. According to the reference price of fuel published yesterday by the Fuel Import, Storage and Distribution Supervisory Committee, the retail price of 92 Ron per litre in the Yangon Region is K2,140, and 95 Ron is K2,210 per litre, while one litre of HSD (500 ppm) was set at K2,440.

Similarly, HSD (50 ppm) and HSD (10 ppm) were set as K2,515 per litre as reference retail prices for motor oil. In addition, the Fuel Import Storage Distribution Supervisory Committee’s reference wholesale price of motor fuel in the Yangon region is K2,038 per litre of 92 Ron, K2,108 for 95 Ron, K2,331 for HSD (500 ppm) and K2,440 for HSD (10 ppm). Fuel shortages are occurring in cities of Shan, Mon, and Kachin states. There have been delays in extracting oil even in Yangon where fuel oil storage tanks are located. Currently, fuel prices are calculated based on the MOPS price by the Fuel Import, Storage and Distribution Supervisory Committee, and if consumers are not satisfied, they can report to the committee. 

Source: The Global New Light of Myanmar

13-1-1024x678

Fruit exports bag US$45 mln within four month

by TRADING

According to the Trade Department under the Ministry of Economy and Commerce, $45 million was earned from exporting fruits to foreign countries in four months. It is reported that more than 100,000 tonnes of domestically grown fruits have been exported and sold to neighbouring countries through land borders.

From 1 April to 22 July in the 2022-2023 financial year, 95,000 tonnes of GMO bananas, 15,000 tonnes of mangoes, 10,400 tonnes of watermelons, over 3,300 tonnes of sweet melons, 192 tonnes of coconuts, more than 120,000 tonnes of fruits such as avocados and peaches were exported.

Around $45 million was earned from the export of the fruit from April to July in the 2022-2023 financial year. GMO bananas, mangoes, watermelons, sweet melons, coconuts, peaches, avocados, apples, mangosteen, and pineapples were exported to the Chinese market through Muse, Myawady, Maungtaw, Kampaiti, and Lweje border trade camps. 

Source: The Global New Light of Myanmar