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Forest Department calls for competitive bidding to harvest edible bird nests

by TRADING

The Forest Department under the Ministry of Natural Resources and Environmental Conservation called for competitive bidding to seek a three-year working permit for harvesting the edible bird nests which were out of stock during the spike of COVID-19 cases in Myanmar. “The islands of Myeik Archipelago in Taninthayi coastal region are habitats of swiftlets. The Forest Department has been managing those islands for years. Earlier, it granted the work permit once a year. Starting from 2020, the department gave green light to this business once every three years,” said an official of Taninthayi Region Forest Department.

The winner of the auction for harvesting the bird nests on the islands of Taninthayi Region can collect the edible bird nests between the 2021-2022 financial year and 2023-2024FY. Bidding will commence soon. The islands to harvest the edible bird nests are located in Dawei, Myeik and Kawthoung districts. According to open tendering rules and regulations, an individual businessperson must handle the work. Edible-nest swiftlets dwell in the Southeast Asian coastal region and they can be found in Taninthayi Region.

The work permit is changed from a yearly basis to once every three years for the sustainable production of bird nests. The edible bird nests production businesses boomed in the COVID-19 pandemic. Last year, the market saw an exorbitant price of bird nests. Moreover, with the price of edible birds’ nests rising, the number of breeders of edible nest swiftlets has increased in Myeik Township. Edible nest swiftlets are induced into making nests using bird-noise techniques at houses along the Strand Road in Myeik. This breeding business has become popular in the region, and many breeders are thriving, said breeders. Two types of nests are sold at the market: those from islands and those collected from breeding houses. 

Source: The Global New Light of Myanmar

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Announcement on Extension of the Precautionary Restriction Measures Relating to Control of the COVID-19 Pandemic until 28 February 2022

by COVID
  1. WITH a view to ensuring further strengthening of measures to contain the spread of the COVID-19 pandemic, the Ministry of Foreign Affairs of the Republic of the Union of Myanmar has issued the following announcements regarding temporary entry restrictions for visitors from all countries. All those restrictions were extended until 31 January 2022 by the Ministry’s announcement dated 1 January 2022.
    (a) Announcement dated 15 March 2020 regarding precautionary measures for all travellers visiting Myanmar;
    (b) Announcement dated 20 March 2020 regarding additional precautionary measures for travellers visiting Myanmar and temporary suspension of issuance of visa on arrival and e-visa;
    (c) Announcement dated 24 March 2020 regarding additional precautionary measures for travellers from all countries visiting Myanmar;
    (d) Announcement dated 28 March 2020 regarding temporary suspension of all types of visas (including social visit visas) and visa exemption services.
  2. In order to continue its effective response measures to protect the population of the country from the risks of importation and spread of the COVID-19, the Government of the Republic of the Union of Myanmar has decided to extend the afore-mentioned entry restriction measures until 28 February 2022.
  3. In case of urgent official missions or compelling reasons, foreign nationals, including diplomats and United Nations officials, who wish to travel to Myanmar by available relief or special flights, may contact the nearest Myanmar Mission for possible exception with regard to certain visa restrictions. However, all visitors must abide by existing directives issued by the Ministry of Health relating to the prevention and control of the COVID-19 pandemic.

Ministry of Foreign Affairs
Nay Pyi Taw
Dated. 31 January 2022

Source: The Global New Light of Myanmar

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MoC notifies importers of compulsory licensing from 1 March

by TRADING

The Ministry of Commerce has declared HS code lines for imports which need licence starting from 1 March 2022. This action aims to respond to the post COVID-19 recovery, ensure systematic import and export process and manage foreign capital inflows. The ministry has already notified the importers of the compulsory licensing for some import items. Import licence can be sought from 1 February 2022.

Those HS code lines include the following import items; bicycles, other cycles, parts and accessories of bicycle, cycle and vehicles, glass fibres, glass wares and other articles of glass, knitted or crocheted fabrics, textile materials, cotton and silk yarn, plastic, chemical, coffee substitutes and extracts, pharmaceutical products and equipment, sunglasses, hand clock, arms and ammunition, pistols, furniture, mattress, cushion, chandelier, electrical appliance, game machines, extraction from animals, stamps and antiques, vessel and parts, telecommunication materials, household goods, air-conditioner, cold storage and refrigeration machines, washing machine, hot air balloons, iron, steel, aluminum and gems and jewellery, ceramic, construction materials, printing materials, rubber, leather, flammable items, fuel oil, food products, tobacco and related products, preserved food, raw materials for food processing industry, animal products, aquatic animals, live animals and decoration materials.

Starting from 1 March, those items included in the HS code lines declared by the Ministry of Commerce are obligatory for import licensing. More items which need import licence will be notified as well, in compliance with the Export and Import Law. Myanmar imports the consumer, capital, intermediate goods, and materials used by CMP businesses. The value of Myanmar’s imports as of 21 January in the current mini-budget period (Oct 2021-Mar 2022) sank to US$4.38 billion from $4.94 billion recorded in the same corresponding period of last FY, the Ministry of Commerce’s data indicated. The top 10 import countries to Myanmar are China, Singapore, Thailand, Indonesia, Malaysia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the ministry.

Source: The Global New Light of Myanmar

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Agricultural export value plummet to $1.25 bln as of 21 January

by TRADING

The value of agricultural exports sank to US$1.25 billion as of 21 January in the current mini-budget period (Oct 2021-March 2022), indicating a significant drop of $375.5 million as against the year ago period, as per the statistic of the Ministry of Commerce. The agro exports topped $1.6 billion in the corresponding period of the 2020-2021 FY. China constitutes 90 per cent of Myanmar’s fruit and vegetable export. During the previous financial year, the closure of border posts by China adversely affected the fruit producers. Additionally, China’s import regulations and prevention measures for the COVID-19 caused delay, exporters said.

At present, some border posts are operating trade activities on a trial run. During the mini-budget period, the coronavirus pandemic impacted the foreign demand for agricultural products, livestock, mineral and finished industrial goods. In contrary, the exports of fishery, forest products and other goods rose slightly. In the exports sector, the agriculture industry performed the best, accounting for 37 per cent of overall exports. The chief items of export in the agricultural sector are rice and broken rice, pulses and beans and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, kitchen crops and other agro products are also shipped to other countries.

Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. The country requires specific export plans for each agro product, as they are currently exported to external markets based upon supply and demand. The G to G pact also ensures the strong market for the farmers. Contract farming systems, involvement of regional and state agriculture departments, exporters, traders, and some grower groups, are required in order to meet production targets, the Agriculture Department stated. The Commerce Ministry is endeavouring to help farmers deal with challenges such as high input costs, procurement of pedigree seeds, high cultivation costs, and erratic weather conditions. The agricultural exports jumped to US$4.6 billion last financial year 2020-2021, despite the downward trend in other export groups.

Source: The Global New Light of Myanmar

Dollar exchange rate hits around K2,000 despite CBM control to maintain stability

by ECONOMY

Despite the Central Bank of Myanmar keeping selling the US dollar to control the sudden fluctuation of foreign exchange rates, Myanmar’s foreign exchange hits around K2,000 per dollar in the outside foreign exchange market. The CBM sold a total of $65 million at an auction rate including $15 million each on 7, 12 and 20 January and $10 million on 13 and 14 January.

The CBM is selling the foreign currency at its auction-rate through banks to the prioritized sectors especially fuel oil, edible oil and pharmaceutical sectors where the dollars are vastly in need. Although the exchange rate on the US dollar hit around K1,330 per dollar the last January, the dollar value reached the highest of over K3,000 last September-end.

Last year, the CBM sold $443.8 million to the sectors especially the oil, fuel and pharmaceutical sectors that need US dollars through the banks. Besides, the Central Bank of Myanmar (CBM) issued the instruction on 9 November that the foreign exchange transitions must be carried out within ± 0.5 per cent of the reference rate established by the CBM. The CBM’s reference rate was K1,778 per dollar on 28 January, but the outside 6 foreign exchange market rate hit around K1,970 per dollar.

Source: The Global New Light of Myanmar

CBM sells US$150 million to fuel oil sector

by ENERGY

The Central Bank of Myanmar (CBM) sold US$150 million to the fuel oil sector, according to the Consumer Affairs Department. The CBM sold $140.90 million countless times to the fuel oil imported companies at the references rate of a minimum of K1,753 and a maximum of K1,820 between 15 September 2021 to 19 January 2022. Of them, more than 151 million litres of fuel oil worth $103.90 million are being distributed to the market. Of over 151 litres of fuel oil, more than 144 million litres have been distributed so far and the remaining only over 71 litres are left to sell to the market, said an official from the Consumer Affairs Department.

Besides, the CBM sold $37 million to the fuel oil imported companies at the reference rate of K1,781 from 12 January to 19 January. But all the fuel oil isn’t distributed yet. The volumes of fuel oil, equivalent to $37 million have remained for sale. If the consumers find the shops that are not being sold at the fixed price, they are urged to report to the Working Committee on Ensuring the Smooth Flow of Trade and Goods, Consumer Affair Department and Myanmar Petroleum Trade Association. At present, the domestic oil price is positively related to the global market and the dollar exchange rate. The soaring demand drives up the oil prices rally higher.

A dollar is worth around K2,000 in the domestic foreign exchange market. On 28 January, the fuel prices were K1,610 per litre of diesel, K1,620 per litre of premium diesel, K1,590 per litre of petrol (RON 92) and K1,650 per litre of petrol (RON 95), according to figures released by the Myanmar Petroleum Trade Association (MPTA). The price hike is attributed to the devaluation of Kyat in the foreign market. Currently, the US dollar exchange rate still reached a record high in Myanmar of around K2,000 per dollar. In early February 2021, the exchange rate on the US dollar hit around K1,330 per dollar. The fuel oil was pegged at around K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Myanmar imports around six million tonnes of fuel oil per year, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar

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Earning from Myanmar aquaculture products export exceeds $276.5 mln as of 14 January

by TRADING

The value of Myanmar’s seafood exports as of 14 January in the current six-month mini-budget period (October 2021-March 2022) was estimated at over US$276.58 million, which increased slightly from $2.57 million in the corresponding period of the last financial year 2020-2021, the Ministry of Commerce’s data indicated. Ministry of Agriculture, Livestock and Irrigation is focusing on boosting production, exploring new markets, increasing export items, enhancing the livelihood of local people, providing financial assistance to the breeders, promoting the fish consumption of the people and tackling the challenges together with all the stakeholders.

Moreover, the Myanmar Fisheries Federation (MFF) is attempting to grow fishery export regardless of the COVID-19 disruption on maritime trade, closure of borders and fuel oil price instability. The high input cost such as fishing net, oil price posed another burden for the industry, coupled with the devaluation of Kyat in the forex market, the Mawlamyine Commodity Centre stated. The marketable fish products, especially fish, shrimp, eel and crab from Taninthayi and Ayeyawady regions and Rakhine State are primarily exported to foreign markets.

Myanmar normally exports fisheries products, such as fish, prawns, and crabs, to markets of 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union.  Chinese market constitutes about 65 per cent of Myanmar’s fishery exports, accounting for US$254 million out of the overall fishery export value of over $850 million in the FY2019-2020. At present, China shut down the border areas in wake of the COVID surge in Myanmar. The federation is turning to the Bangladesh market with export potentials at present. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar. During the last financial year 2020-2021 (October-September), Myanmar shipped approximately $785 million worth of seafood, the Ministry of Commerce’s data showed.

Source: The Global New Light of Myanmar

Oil price rally continues on stronger dollar

by ENERGY

Fuel oil prices are steadily rising on global cues and touch a high of K1,600 per litre, according to petrol stations in Yangon Region. The prices of fuel oil in the domestic market, tracking the Kyat weakening against US dollar, the
market’s data indicated. 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 K1,565 for Octane 92, K1,615 for Octane
95, K1,590 for diesel and K1,600 for premium diesel. There is a price gap of K170-K200 per litre within a month, 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, the domestic oil price is positively related to the global market. Declining inventories and supply disruptions push oil prices higher in the global market, with US$83.99 per barrel for WTI crude and $87.11 for Brent crude at present. When a dollar was valued at only K1,330 in early February, the fuel oil was estimated at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market.

Consequently, in a bid to steer the dollar rally in the local forex market, the Central Bank of Myanmar (CBM) sold $65 million at its auction market rate in January this year. Additionally, the Ministry of Commerce in coordination with the Myanmar Petroleum Trade Association carried out a scheme to distribute fuel oil at a fairer rate through the government-sponsored petrol 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 six million tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

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FDI flow hits nearly $246 mln in three months of this mini-budget period

by INVESTMENT

The flow of Foreign Direct Investment (FDI) into the country stood at nearly US$246 million in the three months of this mini-budget period of the 2021-22FY, according to the Directorate of Investment and Company Administration (DICA).

In three months of the 2021-22FY mini-budget period, a total of $245.902 million FDI, including an increase in investment value flowed into the manufacturing sector, livestock and fisheries sector, energy sector, construction sector, transport and communications sector, hotels and tourism sector and other sectors.

In the 2020-21FY, the electricity sector topped FDI with over $3,121 million, followed by the industry sector with over $286 million and the transport and communications sector with over $133 million. According to DICA, a total of 48 enterprises have been granted permits and endorsements in the 2020-21FY, bringing in the capital of $3,791.398 million. The Ministry of Investment and Foreign Economic Relations is inviting investors to conduct business in a responsible and accountable manner. If those businesses enter Myanmar, it would be beneficial to the country.

Source: The Global New Light of Myanmar

Gold demand down in domestic market

by ECONOMY

As the gold price is too fast to spike yet slow to fall in the domestic market, there are more sellers than buyers, said U Myo Myint, Chair of the Yangon Region Gold Entrepreneurs Association (YGEA). The daily transaction of 50 visses (a viss equals 1.6 kilogrammes) of gold are seen in the market. However, sellers outnumber buyers in recent days.

“Gold shops are buying approximately 50 visses of the gold transaction rather than selling these days, unlike the past trading,” U Myo Myint was quoted as saying. Additionally, Kyat devaluation against the US dollar is another reason for the price hike in the domestic gold market, he added. The global gold price stands at US$1,836 per ounce. The US dollar exchange rate is approximately K1,990 in the local forex market at present.

Meanwhile, the pure gold fetches up to K1,880,000 per tical (0.578 ounce, or 0.016 kilogramme). The gold price rally is likely to continue in the coming months. Only if the global gold price slides and Kyat appreciates on the US dollar can the domestic gold price fall, U Myo Myint shared his opinion. The domestic gold price is highly correlated with the international market. Last 28 September 2021, a dollar value hit an all-time high of over K3,000 in the black market and consequently, the pure gold reached a record high of K2.22 million per tical in history.

Source: The Global New Light of Myanmar