Myanmar seeks foreign investment in oil crop cultivation for self-sufficiency in edible oil

by INVESTMENT

Negotiations are underway to attract foreign agricultural companies to invest in Myanmar by growing oil crops on vacant land, according to U San Lin, Chair of the Myanmar Edible Oil Dealers’ Association. This initiative aims to achieve self-sufficiency in edible oil production.
Despite cultivating marketable oil crops domestically, Myanmar’s production of edible oil remains low due to limitations in grinding and milling technology. As a result, locally grown peanuts are exported as raw produce rather than processed into peanut oil.
To address this challenge, the Myanmar Edible Oil Dealers’ Association is engaging in negotiations with foreign agricultural companies. These companies would be granted permission to cultivate oil crops, such as sunflowers, on vacant and unused land in the country.
“We are negotiating with foreign agricultural companies interested in investing in Myanmar’s agricultural sector,” explained U San Lin. “We have vacant land available, and we will collaborate with relevant authorities to facilitate land acquisition. Once land is secured, these companies will be allowed to establish factories and oil mills nearby to process the crops into edible oil.”
This initiative is crucial as Myanmar’s domestic production of edible oil (approximately 300,000 tonnes annually) falls significantly short of national consumption (around 1,200,000 tonnes annually). Consequently, Myanmar imports nearly 900,000 tonnes of edible oil each year, with over 90 per cent originating from Indonesia and Malaysia. 

Source: The Global New Light of Myanmar

Myanmar-Thai border trade logs US$4.06 bln in 2023-24 FY

by TRADING

According to Daw Cho Thet Mu, the Deputy Director of the Trade Policy Division within the Trade Department under the Ministry of Commerce, the trade volume between Myanmar and Thailand reached US$4.06 billion via land borders during the period from April 2023 to February 2024 in the 2023-24 Financial Year.
Breaking down the figures, Myanmar exported goods worth $2.86 billion while importing $1.20 billion, resulting in a total trade value of $4.06 billion within the specified period.
Daw Cho Thet Mu stated, “For the Myanmar-Thai border trade from 1 April to 25 February of the 2023-24 FY, Myanmar exported goods worth $2.86 billion and imported goods worth $1.20 billion. Currently, the trade surplus stands at $1.66 billion for Myanmar”.
The main export products include CMP products, agricultural produce, and fishery products. On the other hand, Myanmar imports construction materials, equipment, machines and accessories, medicines, raw materials for factory use, fertilizers, foods, cosmetics, and electronic items from Thailand.
The Myanmar-Thai border trade posts encompass Myawady, Tachilek, Kawthoung, Myeik, Hteekhee, Mawtaung, and Maese.

Source: The Global New Light of Myanmar

Yangon Region govt develops construction of production road in Twantay

by CONSTRUCTION

The Yangon Region government has announced the construction of a production road in the Shwemayin area of Twantay Township to facilitate the flow of commodities, according to a report. The road will stretch from Mamyosu through Kin Village, Khayangyi, Khayanwa, Yaytwingon, and Kwinpauk in the Shwemayin area.
On 1 March, Yangon Region Chief Minister U Soe Thein and regional ministers inspected the progress of the production road. Currently, the construction of an earthern road measuring 2,400 feet in length and 19 feet in width, with a thickness of six inches, from Kwinpauk Village to the creek has been completed. The chief minister and his team also assessed the construction of a parking lot, which is 300 feet long, 100 feet wide, and seven inches thick, situated at the junction of Shwemayin Creek and Kwinpauk Creek.
This road provides the shortest route for transporting goods from Shwemayin along Kwinpauk Creek, saving time and enabling local products to reach the market promptly. The chief minister emphasized the importance of adhering to standards and meeting deadlines for the projects. Additionally, he urged preparations for water management within Kwinpauk Village to prevent flooding during the rainy season, clearance of undergrowth along village streets, and promotion of vegetable cultivation.
Upon completion of the production road, various sectors, including agriculture, fish farming, healthcare, economy, education, and social welfare in the Shwemayin area of Twantay Township, are expected to experience development. 

Source: The Global New Light of Myanmar

Yangon Port Thrives: Export figures and shipping methods

by LOGISTICS

SINCE the conclusion of the monsoon season in October 2023, Yangon Port has been bustling with cargo vessels, containers, trade activities, and employees. The Ministry of Commerce reports that Myanmar exported nearly US$2 billion worth of agricultural produce from April 2023 to January 2024. In February alone, the country exported 384,405 tonnes of rice, bringing the total exported rice for the 11 months of the financial year 2023-24 to 1.4 million tonnes.

Traditionally, rice exports have been facilitated via containers. However, due to a shortage of containers in the financial year 2021-22, exacerbated by the COVID-19 pandemic, exporters turned to stacking rice in general cargo vessels. This financial year, the volume of rice exported in containers has doubled compared to the stacking method. Europe, Africa, and Asian countries, including Bangladesh and Indonesia, remain primary markets for Myanmar rice.

In February, bean exports reached 156,950 tonnes, contributing to a total bean export of 1.2 million tonnes in the current financial year. Exporters primarily use containers to export beans to India and other Asian countries. Corn exports in February totalled 365,472 tonnes, marking the highest monthly export for corn. The total corn export for the current financial year is 891,038 tonnes. Exporters mainly transport corn by stacking it in the cargo holds of vessels, accounting for 75 per cent of corn exports, while the remaining 25 per cent are shipped in containers. Thailand and the Philippines are the primary buyers of corn.

Small-scale private vessels with capacities of 2,700-3,000 tonnes are also engaged in trading corn to Ranong and Kantang ports in Thailand. The Myanma Port Authority oversees operations to ensure timely transportation with minimal waste. It collaborates with the Myanmar Rice Federation, beans and pulses merchants, as well as the Union of Myanmar Federation of Chambers of Commerce and Industry, the Myanmar International Freight Forwarders Association, the Customs Department, the Department of Trade, and other stakeholders to ensure an adequate supply of containers.

Source: The Global New Light of Myanmar

Mandalay Region welcomes 2.4 million tourists in 2023

by HOTEL & TOURISM

More than 2.4 million domestic travellers and foreign tourists visited the destinations in Mandalay Region in 2023, according to U Min Maung Soe, Deputy Director of the Directorate of Hotels and Tourism (Mandalay Region).
In 2023, the number of tourists visiting destinations in Mandalay Region exceeded 2.4 million, comprising over 2.1 million domestic visitors and more than 310,000 foreign tourists.
“In 2022, 1.2 million domestic travellers and 120,000 foreign tourists entered the region. In Mandalay Region, Mandalay, Bagan, Popa, and PyinOo- Lwin areas are tourist destinations that are constantly visited throughout the year,” U Min Maung Soe said.
Mandalay Region Directorate of Hotels and Tourism, Myanmar Hoteliers Association-Mandalay Zone and Myanmar Tourism Federation are cooperating to ensure continuous tourist visits and improve tourism services during this year.

Source: The Global New Light of Myanmar

Export earning policy bites pulses market

by ECONOMY

As the export earning policy remains unchanged, pulse prices have been significantly dropping in recent days. Meanwhile, green gram prices barely fluctuated.
The black gram prices were volatile in February. The price stood at K3.02 million per tonne on 23 February and jumped to K3.22 million on 27 February. Then, it plummeted to K2.94 million per tonne on 28 February. Similarly, the pigeon pea price also plunged to K3.657 million per tonne on 28 February from K3.91 million on 20 February.
Nonetheless, the prices of green gram were stable at K2,830-K3,250 per viss for Pakokku green gram and K4,250 for Shwe Wah green gram variety between 23 and 29 February.
The chickpea prices decreased to K5,925-K6,300 per viss on 29 February from K6,250-K6,400 on 27-28 February.
The FOB prices stood at US$980-$1,000 per tonne of black gram (FAQ) and $1,220-$1,240 for pigeon pea from 19 to 24 February, whereas the prices slumped to $955-$975 for black gram (FAQ) and $1,190-$1,210 for pigeon pea on 1 March. Also, the FOB price dipped to $770-$800 per tonne of green gram from central Myanmar regions and $870-$900 for the Shwewah variety on that day, which was just a tiny price difference.
There is news spreading in India’s market that the reference price is likely to be set to control the prices of locally produced pulses. The misinformation on Myanmar’s currency market also influenced the price fluctuation.

Source: The Global New Light of Myanmar

YCC to host Myanmar 8 Build Expo 2024

by EVENT

According to the Myanmar Construction Entrepreneurs Federation, the Myanmar 8 Build Expo 2024 is scheduled to take place from 29 to 31 March at the Yangon Convention Centre (YCC) in Mayangon Township, Yangon.
The exhibition is organized by Silver Sea International Co Ltd in collaboration with the Myanmar Construction Entrepreneurs Federation (MCEF) and the Federation of Myanmar Engineering Societies (Fed.MES). It will feature the Myanmar 8 Build, Myanmar Real Estate & Property Expo, Renewable Energy & EV Myanmar.
U Nay Lin, a member of the central committee from the Myanmar Construction Entrepreneurs Federation (MCEF), mentioned that the exhibition will showcase construction materials, technologies, domestic and international housing, household furniture, home interior decorations, electronics, solar energy, and renewable energy products at 170 booths. 

Source: The Global New Light of Myanmar

Republic of the Union of MyanmarAnnouncement of Central Committee on Prevention, Controland Treatment of Coronavirus Disease 2019 (COVID-19)

by COVID

IT is necessary to control Coronavirus Disease 2019 (COVID-19) infection continuously. So
it is now announced that public requests, orders, notifications and directives (except for
easing restrictions) released by Union-Level Organizations and Union Ministries up to 29
February 2024 have been extended to 31 March 2024 for prevention, control and treatment
on Coronavirus Disease (COVID-19).

Source: The Global New Light of Myanmar

EVs, e-motorcycles, related accessories arrive at Yangon Port

by ENERGY

With the approval of the National-level Steering Committee on Development of Electric Vehicles and Related Accessories, Aiqar eQ3 electric vehicles imported by Myanmar Great Motor Co Ltd, Kanbo electric motorcycles imported by Aung Kan Bo Motorcycle Industrial Co Ltd, and YADEA electric motorcycles and relevant accessories imported by Myanmar Arr Thit Man Motor Co Ltd arrived at Yangon Port. They were allowed to be claimed on 29 February under rules and regulations.

Source: The Global New Light of Myanmar

Monthly Business Brief, February 2024

by Business Article

Economy

People’s Military Service Law to come into force on 10 February

The SAC activated the People’s Military Service Law on February 10, 2024. Although the law was enacted in 2010, it had not been activated until now. Under this mandate, all men aged between 18 and 35, and women between 18 and 27 have to enter compulsory military service for at least two years, up to five in times of emergency. Skilled professionals, such as doctors, engineers, technicians, etc., may be recruited up to 45 years of age. The Ministry of Defense is currently in the process of drafting the necessary bylaws, procedures, announcements orders, notifications, and instructions.

Internal displaced persons reached nearly 2.7 million

The UNOCHA reports that nearly 2.7 million people are internally displaced in Myanmar, since the events of February 2021. Much of the displacement has occurred due to the rising levels of conflict in regions including Northern Shan and Rakhine State.

The UNOCHA acknowledges the critical issue and direct consequences of underfunding affecting its performance and requesting US$ 994 million in funding to aid 5.3 million people in Myanmar including 1.8 million in most severely restricted areas in need of humanitarian assistance, prioritizing food security, shelter, and protection.

 11,000 Myanmar workers will be sent to Korea under EPS in 2024

As of February, A total of 10,611 Myanmar workers have been selected to work in Korea under the EPS system, an increase of about 1,500 additional workers from last month. They will be working in several fields including manufacturing, construction, agriculture and livestock, and construction. Workers with specialized skills, such as welders, have also received employment opportunities.

Banking and finance

The CBM pumped US$77 million and 850 million Thai Baht into the financial market

The Central Bank continues to prop up the Kyat by selling more and more of its foreign reserves. In February, it has sold off US$ 77 million and 850 million Thai Baht.

Currently, the over-the-counter rate for the US$ dollar hovers around Ks. 3610, an increase of about Ks. 200 over the past few months. The Baht stands at Ks.101, and the RMB stands at Ks.500. The official reference remains unchanged since August 2022.

Trade

Supervision committee enforced on fighting illicit trade

On February 20, a meeting of the Illegal Trade Eradication Steering Committee was held in Naypyidaw, chaired by Vice Chairman Vice-Senior General Soe Win. The meeting addressed the issue of illegal trade and emphasized its adverse impacts on business, economy, security, and the environment. The nature of the situation was in a serious position and called for need strict actions against illegal traders.  Regarding the illicit trade in Myanmar, smuggling shared 60%, under invoice 30% and parallel trade 10%.

83 companies have been commissioned to carry out EV related activities

The national committee on electric vehicles reported that there were a total of 83 businesses that were permitted and licensed to carry out businesses related to electric vehicles. Two companies are permitted to operate charging stations across the country and two well-known bus companies will operate electric buses. Since November 2022, when the government announced its pilot phase for EVs, several EV brands, mostly from China, have made an appearance in Myanmar, including BYD, Wuling, MG, and BAIC.

EV import licences to be granted for car showrooms

Initially, EVs in Myanmar could only be sold by authorized companies, who had to operate their own car showrooms that were wholly dedicated to electric vehicles. On February 1, 2024, the rules have been relaxed, as independent showroom operators can now receive a license to import EVs, provided they meet set requirements and guidelines.

Investment

Cancellation of investment of the Shwe Byai Phyu Group from AOTM shares

Shwe Byai Phyu (SBP) Group announced on February 9th 2024 that it had fully divested its shares from Investcom Pte Ltd, the holding company that owns telecommunications company ATOM Myanmar. Its shares would be taken over by Myancom Holdings.

SBP was targeted in the latest series of sanctions by the United States. ATOM, previously known as Telenor, have said that it maintains no links with any sanctioned individual or organization, and will continue to follow all rules and regulations.

Petrochemical refinery will be built at Dawei SEZ

The Myanmar Special Economic Zone Central Committee announced that a petrochemical factory will be built in the Dawei SEZ, as well as various manufacturing plants and oil refinery.

Manufacturing

Construction begins on bran oil, cooking oil production plant

Myanmar is building its first factory of rice bran oil and cooking oil, as announced by the Myanmar Rice Federation. Myanmar Rice Bran Oil Co. Ltd (MRBO) will begin construction on the refinery within the Myanmar Agribusiness Public Corporation (MAPCO) compound in Pyinmana, Naypyidaw. This will alleviate the pressures caused by imported oil and ensure self-sustenance.

Energy

Electricity demand is increasing by 15% a year

In a meeting held by the National Renewable Energy Committee (NREC), the Union Minster of the Ministry of Electric Power reported that Myanmar’s electricity demands were increasing by 15% annually. Furthermore, he elaborated that the country’s energy needs were currently met by hydropower, solar, and thermal (coal, natural gas, and LNG), at 47.1%, 1.7%, and 50.7% respectively.

Supervision Committee on Fuel Oil Importation, Storage and Distribution

Throughout January and continuing into February this year, fuel prices has been steadily increasing. The Supervisory Committee on Fuel Oil Importation, Storage and Distribution releases daily reference prices to contain and regulate the market. The prices dropped slightly in mid February. However, prices increased to Ks.2,770 for Octane 92 and Ks. 2,875 for Octane 95, Ks.2,595 for diesel and Ks. 2,640 for premium diesel on 16 February.

Transportation

Myanmar Korea Friendship Bridge Project (Dala) will become land mark of Yangon City

Construction is underway for the Myanmar-Korea Friendship Bridge, which will connect the township of Dala proper with the city Yangon. The project began when Korean GS Engineering Group won a tender and become the main contractor and developer of the project. Financed by the Economic Development Cooperation Fund, construction began in 2019, although it was temporarily suspended during the COVID-19 pandemic. The project resumed once events were clear, and it is expected to be complete in 2024.

Construction of Thanlyin Bridge No (3) completed by 97%

ThanLyin Bridge (3) is 97% complete, according to the Ministry of Construction. In November last year, the central section was completed and currently, work is underway to finalize the project, which is due to be open this year. The bridge, built with financial and technical assistance from Japan, will connect Yangon and Thanlyin, as well as improve transportation between the city and Thilawa SEZ.

COVID

In order to continuously control the infection of COVID-19, the rules and restrictions have been extended until the end of March 2024.