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Rubber price reaches fresh peak of K1,200 per pound

by TRADING

The prices of raw natural rubber hit a record price of K1,200 per pound in Thuwanawady town, Thaton Township, Mon State. Traders sell only sundried rubber at the moment without processing ribbed smoked sheets. This year, the price is pretty high. The rubber fetches up to K1,100 per pound at the beginning of the season and then, it slightly decreases to K950 per pound. Yet, the price has rebounded to K1,200, which is the highest in ten years. Rubber businesses are thriving this year, said a rubber farmer working on a manageable scale in Wiyaw village.

The price is high on the back of steady demand from Kawthoung city. The prices range between K1,015 and K1,230 per pound depending on rubber varieties,” Daw Htar Shwe, a seller from Theinseik Ward, Thuwanawady town quoted in her sayings. All the stakeholders in the supply chain including rubber farmers and workers are doing well financially. After the suspension of trade between Myanmar and China amidst the COVID-19 consequences last year, the trade channel has been reopened again in the present.

Myanmar daily delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon and other food commodities to China through the Kyinsankyawt border. Mon State is the top producer of rubber in the country, accounting for over 240 million pounds of rubber per year, as per data of Mon State Agriculture Department. The National Enlightenment Institute (NEI), a non-profit organization based in Mon State, has been receiving technical assistance from PUM Netherlands Senior Experts to enhance the rubber industry since May 2021, according to Mawlamyine Commodity Centre.

Rubber is commonly produced in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per 2018-2019 rubber season’s data, there are over 1.628 million acres of rubber plantations in Myanmar, with Mon state accounting for 497,153 acres, followed by Taninthayi region with 348,344 acres and Kayin state with 270,760 acres. About 300,000 tonnes of rubber is produced annually across the country. Seventy per cent of rubber produced in Myanmar goes to China.

It is also shipped to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan, and other countries, according to the Myanmar Rubber Planters and Producers Association. About 300,000 tonnes of rubber is produced annually across the country. Seventy per cent of rubber produced in Myanmar goes to China. It is also shipped to Singapore, Indonesia, Malaysia, Viet Nam, Korea, India, Japan, and other countries. Myanmar shipped 303,293 metric tons of rubber to the foreign trade partners and generated more than US$449 million in revenue in the previous financial year 2020-2021, which is an increase of $184.6 million worth of 89,880 MT compared to the FY2019-2020, according to Myanmar Customs Department’s statistics. 

Source: The Global New Light of Myanmar

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Myanmar’s manufacturing sector hit a record high in February due to weak purchasing power and power outages, according to the survey

by MANUFACTURING

Myanmar’s manufacturing sector rose to a record six-year high in February due to weak purchasing power and power outages in February, according to the IHS Markit Myanmar Manufacturing PMI (Manufacturing Purchasing Managers’ Index) released on March 1. Weaknesses in purchasing power combined with power outages led to the highest rate of work in the survey’s six-year history. For the third straight month, inventories rose to a record high. Myanmar’s manufacturing PMI stood at 47.3 in February, down from 48.5 in January. For the 18th straight month, the PMI fell below 50 points. The February data shows a common chart for companies in Myanmar that are struggling on the downside. 

As new orders and procurement fell sharply, inventories rose at a record high in the survey. Political instability; Power outages; They also reported further epidemics and scarcity of raw materials, said an economist at IHS Maekit. At the beginning of 2022, operating conditions in Myanmar’s manufacturing sector declined more rapidly, with production falling for 17 consecutive months, according to a February survey. According to a survey released at the end of 2021, Myanmar’s manufacturing output remained the most economically affected in Asia by the end of 2021. The survey also found that employment volumes fell again during the period and jobs were cut.

Despite low production demand and reports of workers returning to their homes, most respondents pointed out that workers were voluntarily leaving in search of better-paying positions. Outcomes have risen sharply as companies have struggled to find skilled workers and raw materials. Myanmar’s economy remains one of the worst-hit economies in Asia in 2021. According to the IHS Maekit Myanmar Manufacturing PMI released on November 1. Purchasing Manager ‘Indes (PMI) New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. The survey is based on original data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

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Myanmar registers trade surplus as of 18 February

by TRADING

Myanmar’s lower import as of 18 February in the current six-month mini-budget period (October 2021 March 2022) resulted in a positive trade balance of US$249.3 million, according to data provided by the Ministry of Commerce. Myanmar’s exports exceeded imports in international trade although overall trade value declined compared to the same corresponding period of 2020-2021 Financial Year. Between 1 Oct and 18 February, the country’s exports were estimated at $6.103 billion, imports were valued at $5.85 billion this FY. The external trade drastically sank to $11.958 billion from $12.72 billion recorded in the year-ago period.

Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts. Myanmar’s maritime trade climbed up yet the country witnessed a drop in the border trade following the closure of some border posts by main trade partner China. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods. Moreover, import fall led to the largest trade surplus of $677 million in the last FY2020-2021, with $15.36 billion worth of exports outperforming $14.69 billion worth of imports.

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 import substitution. The ministry has already notified the importers of the compulsory licencing for some imported items. Import licence can be sought from 1 February 2022, with an aim to respond to the post-COVID-19 economic recovery, ensure systematic import and export process and manage foreign capital inflows.

Source: The Global New Light of Myanmar

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Announcement of Central Committee
on Prevention, Control and Treatment
of Coronavirus Disease 2019
(COVID-19)

by COVID

13th Waning of Tabodwe 1383 ME
28 February 2022

AS it is necessary to continuously control infection of the Coronavirus Disease 2019 (COVID-19), it is hereby announced that public requests, orders, notifications and directives (except for easing the restrictions) released by the Union-level organizations and Union ministries up to 28 February 2022 have been extended until 31 March 2022 for prevention, control and treatment of Coronavirus Disease 2019 (COVID-19).

Source: The Global New Light of Myanmar

Domestic oil price surges on global cues in late February

by ENERGY

Fuel oil prices are constantly edging up on the depreciation of Kyat against US dollar and a sharp increase in crude oil prices in the past two days, according to the filling stations in Yangon Region. On 1 January 2022, the prices stood at K1,390 for Octane 92, K1,440 for Octane 95, K1,375 for diesel and K1,385 for premium diesel, whereas the prices inched higher to K1,745 for Octane 92, K1,800 for Octane 95, K1,720 for diesel and K1,730 for premium diesel. There is a price gap of K345-360 per litre within two months, according to the local fuel oil market.

The fuel oil price is highly correlated with the foreign exchange rate. At present, the exchange rate is pegged at around K2,000 in the local forex market. Additionally, domestic oil price is positively related to global market. Oil prices jumped in the global market as Russia-Ukraine crisis escalated, with US$91.59 per barrel for WTI crude and $97.93 for Brent crude at the present time. When a dollar was valued only K1,330 in early February 2021, the fuel oil was estimated at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel then in domestic retail market.

Consequently, in a bid to steer dollar rally in local forex market, the Central Bank of Myanmar (CBM) sold US$65 million at its auction market rate in January this year. Additionally, the Ministry of Commerce in coordination with Myanmar Petroleum Trade Association implemented a scheme to distribute fuel oil at fairer rate through the government sponsored filling station chains starting from 22 September 2021. The total volume of fuel oil that are sold at very cheap rates is equivalent to the amount that the oil importers directly purchased the foreign currency from the CBM. The CBM has directly sold over $87 million to the fuel oil sector so far. Normally, Myanmar yearly imports 6 million tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

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Myanmar foreign trade tops $11.95 bln as of 18 February 2022

by TRADING

Myanmar’s external trade as of 18 February in the current six-month mini-budget 2021- 2022 (Oct-March)
financial year period slid to US$11.95 billion, which shows a drastic drop of $765.9 million as against the year-ago period, the Ministry of Commerce’s data showed. The international trade stood at over $12.72 billion in the corresponding period of last FY 2020-2021, according to the data released by the ministry.

Between 1 October 2021 and 18 February 2022, Myanmar’s export was worth over $6.1 billion whereas, the country’s import was relatively low at $5.85 billion. The border trade drastically fell by $1.9 billion as against the year-ago period owing to the closure of some border posts by the main trade partner China. However, the maritime trade was registered a significant increase of US$1.15 billion.

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 focusing on reducing trade deficit, export promotion, import substitution and market diversification. The external trade stood at $29.58 billion in the 2020-2021 FY, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

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From February 1 to the end of November 2021, Myanmar Investment Law allowed more than $ 3,552 million in foreign investment in 27 projects in nine sectors

by INVESTMENT

From February 1, 2021 to the end of November 2021, under the Myanmar Investment Law, more than $ 3,552 million was approved for 27 projects in nine foreign investment sectors, according to the Ministry of Investment and Foreign Trade. During that period, foreign investment in each sector was $ 3,044.762 million; $ 179.1 million in transportation and communications; $ 162.483 million in the industrial sector; $ 65 million in the construction sector; $ 37.229 million in other services; $ 30 million in the hotel and tourism sector; $ 22.4 million for industrial zone construction; $ 6.379 million in the livestock and fisheries sector.

 In the agricultural sector, a total of US $ 3,552.396 million was approved for foreign investment with US $ 5.043 million. Manufacturing of electric vehicles; The Myanmar Investment Commission has invited domestic and foreign investment, as it will give priority to eight types of investment, including pharmaceuticals and healthcare products. Entrepreneurs are invited to submit proposals for the following types of investment projects.

The Myanmar Investment Commission will give priority to the following types of investment projects to meet the needs of the state development and nation-building activities: These activities are: (a) Fertilizer production; (B) Cement production activities; (C) Steel production activities; (D) Agriculture and Livestock; Activities related to these activities; (E) Production of value-added food products; (F) Manufacturing of electric vehicles; (G) Manufacturing of pharmaceutical and health products; (H) It is known that it is public transportation.

If Myanmar investors and foreign investors interested in the above investment sectors submit their proposals, the Myanmar Investment Commission; Relevant ministries and state and region governments will also provide necessary assistance. In the 2020-2021 fiscal year, foreign investment was the largest in the electricity sector with over $ 3,211 million, followed by the industrial sector with over $ 286 million, followed by the transport and communications sector with over $ 133 million, according to the Directorate of Investment and Company Administration.

Source: Daily Eleven

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CMP raw materials import peaks to $918.89 mln as of 11 February

by MANUFACTURING

Imports of raw materials by CMP (cut-make-pack) businesses have soared to US$918.89 million as of 11 February in the current six-month mini-budget period 2020-2021 since October 2020, which reflects an
increase of $107 million compared with the year-ago period, according to the Ministry of Commerce. The
figures rose from $728.38 million registered the last FY2020-2021, the Commerce Ministry’s data indicated. Myanmar’s garment exports witnessed a decline of over 20 per cent last year on the back of a slump in demand by the European Union market.

The raw materials imported by the CMP businesses fell simultaneously, stated the Ministry of Commerce. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. Nonetheless, the industry is returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report. Exports of garments manufactured under the cut-makepack (CMP) system were valued at US$3.6 billion in the last FY2020-2021, according to data from the Myanmar Customs Department. The garment sector is among the prioritized sectors driving up exports.

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 mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. The export value of CMP garments was only $850 million in the 2015-2016FY, but it has tripled over the past two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the 2018 mini- budget period (from April to September). It tremendously grew to $4.6 billion in the 2018- 2019FY and $4.8 billion in the 2019-2020FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

Mitsubishi and Petronas to leave Myanmar’s Yedagun gas project

by ECONOMY

Malaysia’s Petronas and Japan’s Mitsubishi Corp. have announced they will sell shares in Myanmar’s Yedagun gas project. These companies are the last of the major energy companies to leave Myanmar since February 1 last year. A Mitsubishi spokesman told Reuters on February 18 that it would be difficult to stay afloat from a technical and economic point of view. The company indirectly owns 1.93% of its investment in the Yedagun gas project off the south coast of Myanmar.

They have already decided to leave the project, and talks were under way with partner companies from Japan. Petrtronas’s PC Myanmar (Hong Kong) Limited, a subsidiary of the Yedagun project, signed an agreement in July last year to sell Petronas’s investment in Myanmar. Petronas told Reuters earlier this month. A Petronas spokesman said the transfer was nearing completion but declined to name the buyer. PC Myanmar (Hong Kong) Limited has a 40.9% stake in the Yedagun project, with Myanmar Oil and Gas Corporation (MOGE) owning 20.5%.

In addition, a Japanese joint venture led by the Japanese government and JX Nippon Oil and Gas Exploration, a subsidiary of Eneos Holding, has a 19.3 percent stake, with the rest owned by PTTEP International of Thailand. “Eneos Corporation is in talks with partners on various possibilities,” a company spokesman told Reuters whether there were any plans to continue the gas project in Myanmar. Total Energies and Chevron, two energy companies involved in a Yadana gas project in Myanmar, are also in Myanmar. It announced last month that it would close its operations due to the deteriorating human rights situation.

Source: Daily Eleven

More than 4,800 bridges built for development of border regions till January 2022

by CONSTRUCTION

The Ministry of Border Affairs stated that more than 4,800 small and large bridges have been built for development of border regions up to the end of January 2022. The ministry is implementing the master plans for development of the border regions. In so doing, the first three-year short-term plan was implemented from 1993-94 financial year to 1995-96 financial year, the first five-year medium-term plan from 1996-97 to 2000-21 financial year, and the second five-year short-term plan from 2001-02 to 2005-06 financial year, totalling 13 years.

Furthermore, the ministry drew a 30-year master plan from 2001-02 to 2030-31 financial year. It was divided into six portions. Starting from the 2011-12 financial year, the master plan was shifted into the 20-year master plan for development of border areas. Such a master plan lasts from 2011-12 financial year to 2030-31 fiscal year. Up to January 31 2022 of the 2021-22 financial year, a total of 4,896 small and large ridges have been built across the nation, including 358 bridges of more than 100 feet in length and 4,372 bridges under the 100 feet in length and 166 suspension bridges.

During the period, the ministry built more than 10,303 miles long earthen roads, 7,207 miles long gravel roads, more than 177 miles long laterite roads, over 3,175 miles long asphalt roads, more than 46 miles long repaved roads, more than 91 miles long concrete roads, 543 miles long expanded roads, 5,101 miles long renovated roads, 2,422 conduits and 5,736 culverts.

Source: The Global New Light of Myanmar