Myanmar Monthly Business Brief, June 2026

Economy

Myanmar-India Economic Relations: New Opportunities for Trade and Investment

At the invitation of Shri Narendra Modi, Prime Minister of India, U Min Aung Hlaing, President of the Republic of the Union of Myanmar, paid his first Official Visit to India from 30 May to 3 June 2026. The visit provides an opportunity to further deepen economic engagement and ex­plore new areas of cooperation that can contribute to sustainable growth and prosperity for both nations.

India is one of Myanmar’s important trading partners. According to Unit­ed Nations COMTRADE data, My­anmar’s exports to India reached approximately US$1.28 billion in 2024, while imports from India amounted to about US$359 mil­lion. Major exports from Myan­mar include agricultural products, particularly beans, pulses, and other agricultural commodities, while imports from India con­sist mainly of pharmaceuticals, machinery, vehicles, electrical equipment, and industrial inputs. These trade patterns highlight the complementary nature of the two economies and the opportunities for further expansion.

Recent years have also seen efforts to facilitate trade through the use of local currency settle­ment mechanisms. The opera­tionalization of the Rupee-Kyat Trade Settlement Mechanism rep­resents an important step toward reducing transaction costs, sim­plifying payment procedures, and supporting businesses engaged in bilateral trade. Such initiatives can help small and medium-sized enterprises participate more ac­tively in cross-border commerce and strengthen economic connec­tivity between the two countries. During his discussions the two countries agreed to work towards achieving US$3 billion of bilateral trade in the first phase and to further aim for US$5 billion in the second phase.

Foreign Direct Investment (FDI) remains an important driv­er of economic development for Myanmar. According to the ASEAN Invest­ment Report 2024, ASEAN contin­ues to be one of the most attrac­tive destinations for international investment, with strong investor interest in manufacturing, infra­structure, logistics, digital servic­es, and renewable energy sectors. For Myanmar, attracting quality FDI is essential for industrial up­grading and long-term economic growth.

India possesses considerable strengths in sectors that are rele­vant to Myanmar’s development needs. These include pharma­ceuticals, information technolo­gy, agriculture, food processing, logistics, renewable energy, finan­cial services, and manufacturing. Greater Indian investment in these sectors could support My­anmar’s economic diversification while creating mutually benefi­cial business opportunities.

Infrastructure connectiv­ity is another area with strong economic implications. Projects aimed at improving transporta­tion and logistics links between Myanmar and India can facilitate trade flows, reduce business costs, and promote regional economic integration. Improved connectiv­ity can help businesses access larger markets, strengthen supply chains, and encourage investment in border regions and industrial activities.

The future success of My­anmar-India economic relations will depend on continued efforts to facilitate trade, improve the investment climate, strengthen infrastructure connectivity, and encourage private-sector coop­eration. If these opportunities are effectively utilized, the recent high-level engagement may serve as a positive foundation for ex­panding economic relations and unlocking new opportunities for businesses and investors in both countries.

Accelerating the Building of a China-Myanmar Community with a Shared Future                

At the invitation of Mr.Xi Jinping, President of the People’s Republic of China,  U Min Aung Hlaing, President of the Republic of the Union of Myanmar, paid a state visit to China from 15 to 19 June 2026.

Joint statement released after the visit. Both sides will work together to build a China-Myanmar community with a shared future based on the aims of mutual benefits, equality and win-win cooperation. The two sides agreed to promote the implementation of the China-Myanmar Economic Corridor (CMEC) and steadily promote cooperation on major corridor projects such as the Kyaukpyu Deep Sea Port and the Mandalay-Muse Railway. These projects will be guided by the principles of mutual respect, mutual benefit, commercial liability, and financial sustainability, in full alignment with laws, regulations, and national conditions of both countries. Furthermore, both sides will leverage the China-Myanmar oil and gas pipelines, steadily advance power grid interconnection, and explore economically and environmentally sustainable energy partnerships. The Chinese side reiterated its willingness to provide ongoing development support. Both sides also noted the steady growth of bilateral trade and recognized the considerable potential for further expansion and diversification. They agreed to facilitate trade through the operationalization of the RMB yuan-Myanmar kyat direct settlement mechanism. Both sides also expressed support for closer trade and investment cooperation in the areas of mutual interest, such as agro-processing, petroleum, and energy.

The two sides signed a number of cooperative documents covering transport, science and technology, intellectual property rights, human resources development, public health and media.

Finance

FE market rate stabled; Gold Prices Fluctuate

The kyat value was K4,300 per US dollar on average at market selling rate in June. The Central Bank of Myanmar (CBM) intervened throughout the month, selling millions of US dollars, yuan, and baht to stabilize the exchange rate and support imports of essential goods. According to available data, online trading amount US dollars 29 million into the edible oil, fuel, and CMP sectors was recorded in June.

16 Peye Gold price was declined at 9.6 million kyats at end of June from 10.1 million kyats per tickle for selling in May.  Domestic fuel prices were significantly declining to K 3,615-3,695 per litre in Octane and K 3,535-4,190 in diesel at end of June.

Trade

Myanmar eyes steady growth in foreign trade

Myanmar aims to achieve growth momentum in foreign trade, targeting to reach US$29.1 billion in the 2026-2027 financial year, according to the Myanmar Trade Promotion Organization (MyanTrade). Myanmar will endeavor to achieve $15.3 billion in exports and $14.7 billion in imports in the current financial year. Furthermore, Myanmar’s foreign trade is expected to expand by about $1 billion year over year, with $30 billion in the 2027-2028 FY, $31.2 billion in the 2028-2029 FY, $32.1 billion in the 2029-2030 FY and $33 billion in the 2030-2031 FY. The country sets the foreign trade target depending on the condition of exports and imports.

Government plans to expand tax relief measures for pharmaceutical raw materials to support local drug production

The Government is coordinating efforts to grant commercial tax exemptions for 365 types of pharmaceutical raw materials used in State-owned pharmaceutical factories, according to the Ministry of Commerce. The ministry said that 454 pharmaceutical raw materials are already exempted from commercial tax to support the development of domestic drug production, reduce production costs and lower medicine prices. In addition, essential household medicines are also exempted from taxation, while other medicines are currently subject to a 1.5 per cent customs duty. Under the 2026 Union Tax Law, 46 groups of essential goods, including basic food items such as rice, cooking oil, salt, chillies and onions, as well as household and traditional medicines, are exempted from commercial tax. The ministry also said it is coordinating with relevant departments in the regions and states to monitor daily prices and the distribution of basic commodities to ensure price stability and smooth market supply.

Thai Festival 2026 returns to Yangon

Thai Festival 2026 in Yangon on 27-28 June 2026 was held at Novotel Yangon Max. The festival included 65 booths showcasing authentic Thai food and beverages, health and wellness products, cosmetics, fashion items, tourism services, and GMMTV artistes’ merchandise.

Visitors enjoyed a wide range of entertainment and cultural activities throughout the two-day event, including live cooking demonstrations, cultural performances, and special appearances by popular Myanmar celebrities.  

Investment

Myanmar Invites Indian Investment Across Key Sectors

India’s investment in Myanmar has exceeded US$94 billion, making it the 11th largest investor among countries investing in Myanmar. Therefore, there are opportunities for investment in sectors such as agriculture and livestock, oil and gas, industry, transport, telecommunications, and services.

Myanmar invites India’s high-tech industries, including pharmaceutical manufacturing, could be established in Myanmar. Given Myanmar’s electricity demand, there are also significant investment opportunities in the power sector.  Indian entrepreneurs also emphasized the need to further expand cooperation between the two countries in areas such as technology, investment, bio-energy production, mining, and the production of agricultural machinery and fertilizers required for the agricultural sector.  Regarding mining, it would be more beneficial to produce value-added finished products for export rather than exporting Myanmar’s mineral resources as raw materials.

Energy

Regulator Slashes Domestic Fuel Price Caps

FUEL price caps are dropping following retreating global oil prices. The reference prices set for June declined to K3,615 for Octane 92, K3,695 for Octane 95, K3,535 for diesel and K4,190 for premium diesel. The reference prices showing a decrease of up to K530 per litre.

The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in South-East Asia, influences the domestic fuel prices, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. The committee is governing the market to ensure a stable price and secure supply. Under the guidance of the Supervisory Committee, the Petroleum Products Regulatory Department has been issuing daily reference wholesale prices to ensure price stability for energy consumers.

The committee is inspecting the fuel stations to see whether they are overcharging. Authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging rather than the set reference rate. As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. Domestic fuel prices are highly correlated with international prices. The State is steering the market to mitigate the loss experienced by the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to regional countries.