A Brief Note on Manufacturing Sector 2021 (Feb-April)
- Myanmar’s manufacturing sector recorded an accelerated downturn in February 2021 according to the political changes.
- Due to the current situation, in March, the last month of the first quarter, Myanmar’s manufacturing sector declined significantly and factories and customers remained closed.
- At the same time, volatile demand led to a near-record decline in the workforce leading to the largest number of unfinished jobs in survey history.
- According to the IHS Markit Myanmar Manufacturing PMI, Myanmar fell from a record low of 27.7 in February to 27.5 in March and 33 in April 2021. (Average index should be 50)
- Both production and new orders in Myanmar’s manufacturing sector fell fivefold in April. The April PMI data show that manufacturing conditions across Myanmar are declining sharply, with many businesses continuing to close due to the current situation. Around 60% of firms recorded lower production in April than in March.
- A garment expert estimated that about 200,000 garment workers lost their job during February to April 2021.
- Looking to the future, large companies expect output to rise by April 2022 but overall expectations were the weakest in over two years.
Manufacturing sector export
- Exports of finished industrial goods drastically plummeted to US$3.209 billion between 1 October 2020 and 19 March 2021 in the current financial year 2020-2021, a severe drop of $1.7 billion compared with the corresponding period of the previous FY, according to the Ministry of Commerce.
- Myanmar’s manufacturing sector is primarily concentrated in garment and textiles produced on the Cutting, Making, and Packing basis, contributing to its GDP to a certain extent.
- Myanmar’s garment export dropped by over 25 per cent as of the first quarter of the current FY compared with a year-ago period, according to the Ministry of Commerce.
- The government reformed that Ministry of Planning, Finance and Industry to Ministry of Planning and Finance and Ministry of Industry on 3 May. Ministry of Industry will emphasize more manufacturing and processing sector for the development of industry sector.
HOTEL & TOURISM
Date: 28th January 2021 Time: 10:00 AM to 1:00 PM Venue: Zoom Webinar Cost: Free Details: The Directorate of Investment and Company Administration has planned