Posts in category: ECONOMY

Union of Myanmar Federation of Chambers of Commerce and Industry’s officials met a delegation led by the chairperson of Yunnan Provincial General Chamber of Commerce (YPGCC) on 17 October 2023 and exchanged ideas on boosting bilateral economic cooperation and enhancing trade.

Yunnan Province is ranked 37th in the global economy. It plays a pivotal role in the Belt and Road Initiative. It is the commercial and transport hub. Myanmar is the largest trade partner of Yunnan Province and the biggest import sourcing and export market. In 2020, 190 non-financial foreign investment projects were brought into Myanmar.

UMFCCI President U Aye Win gave a remark at the meeting that “Yunnan is the important land port in trade and economic cooperation with Myanmar. Myanmar’s agricultural produce is primarily sent to China. The UMFCCI asked the YPGCC to assist Myanmar businesses to meet China’s import rules and regulations. The federation also invited investments in the power sector and other sectors. The YPGCC plays a key role in the active involvement of private sectors to step up economic cooperation and trade promotion activities.”

Additionally, a Memorandum of Understanding to implement the Myanmar-China Economic Corridor (CMEC) was signed on 7 February 2018.

Dr Gao Feng, chairman of the YPGCC, addressed that the purpose of the visit is to reinforce the MoUs signed between Yunnan and Myanmar, cooperate in the energy and mining sector, disaster mitigation, tourism, poverty alleviation and upgrade the Myanmar-China Economic Corridor. Businesspersons from Yunnan accompanied him during his visit to bolster economic and trade cooperation between Yunnan and Myanmar.

Furthermore, bilateral investment development, communication development for trade promotion, information exchange, reinforcing practical cooperation, port business, rice supply, fertilizer supply, agricultural exports, digital transformation and cross-border trade were also highlighted at the meeting.

The representatives from the two chambers also discussed matters regarding potential cooperation opportunities and opinions on the mining sector, iron and steel, transport, e-commerce, tourism, agriculture, pharmaceuticals, sugarcane, sugar, peanut, vegetable, fisheries, food products, research and agricultural chemicals. 

Source: The Global New Light of Myanmar

Deputy Prime Minister Union Minister for Planning and Finance U Win Shein presided over a workshop on enhancing linkages between statistics users and providers in Nay Pyi Taw yesterday.
Speaking at the event, the Union minister said the statistics system of Myanmar is decentralized and only the cooperation of statistical departments and firm linkage can release accurate, qualified and reliable statistics.
The enhancement of linkage between the users and providers of the statistics plays a key role in the National Strategy for Development of Statistics for Myanmar and the User Engagement Strategy was drafted in 2019 with the help of the UN Statistics Division and International Development Partners.
He then talked about the “survey of users’ opinions on statistical yearbooks and digits released by Central Statistical Organization” conducted in September 2023 online and urged to understand the needs of users to release the statistics that can also support the development of the national statistical system.
Permanent Secretary Dr Soe Win also discussed the topic of Promoting Statistical Literacy for All while Improving Statistics User-Provider Relations by Deputy Director-General U Than Zaw of the Central Statistical Organization. At noon, the relevant officials of governmental departments and the Myanmar Statistics Association organized a roundtable discussion under the title of “Dissemination of Official Statistics” and “Statistics User Participation and Stakeholder Engagement”.

Source: The Global New Light of Myanmar

Myanmar Agro Exchange Public Ltd (MAEX) will add two more facilities for dried commodities in early 2024 at the Danyingon wholesale market.
The staple food such as rice, edible oil, salt, chilli, onion and potato will be available at those two facilities (No. 5 and No. 7 buildings), which are slated to be opened in January-February 2024, and they will house over 600 stalls.
The MAEX opened a fruits and vegetables wholesale market with over 1,100 shops on 1 October 2023.
That fresh produce market located in the compound of Danyingon wholesale market has been offering seasonal and other fresh produce.
Additionally, the market is equipped with two cold storage facilities. It might help reduce the wastage of fruits and improve the shelf life of fruits and vegetables by storing them at a cool temperature. It is opened at the No 1 market building to save transport costs and labour wages.
Fresh produce traders are invited to run business in the Danyingon wholesale market. For further details, traders can contact Ph: 09 261289462, 09 775435975, 09 250 493 456 of the market or enquire about Building B 12 of Danyingon wholesale market in Insein Township, Yangon. The Danyingon wholesale market was developed in 2017 by the MAEX and Yangon City Development Committee. New market development started in 2018 and the construction is scheduled to be finished in 2027.
At present, there are 3,360 stalls at the green groceries facility (No.2 building), 1,120 stalls for dried groceries (N0.3) and over 1,400 stalls at the fresh produce and fish and meat facility (No 4). 

Source: The Global New Light of Myanmar

FUEL prices showed a three-day decrease of over K100 per litre in the domestic market. Fuel prices
were K2,440 per litre of Octane 92, K2,565 for Octane 95, K2,650 for diesel and K2,725 for premium diesel on 18 September and then, the prices slipped to K2,330 per litre for Octane 92, K2,435 per litre for Octane 95, K2,530 for diesel and K2,610 for premium diesel on 21 September, indicating a decline of 11-130 per litre depending on types of oil. The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, weighs on the domestic fuel prices, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. Last August 2022, the oil prices touched the highest of K2,605 per litre for Octane 92, K2,670 for Octane 95,
K3,330 for premium diesel and K3,245 for diesel.

The committee is therefore steering the fuel oil storage and distribution sector effectively so as not to
have a shortage of oil in the domestic market and to ensure price stability for energy consumers. The
Petroleum Products Regulatory Department, under the guidance of the committee, is issuing the daily
reference rate for oil to offer a reasonable price to energy consumers. The reference rate in the Yangon Region is set on the MOPS’s price assessment, shipping cost, premium insurance, tax, other general costs and health profit per cent.

The rates for regions and states other than Yangon are evaluated after adding the transportation cost
and the retail reference rates daily covered on the state-run newspapers and are posted on the media and
official website and Facebook page of the department daily starting from 4 May. The committee is inspecting the fuel stations whether they are overcharging or not. The 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. The domestic fuel price is highly correlated with international prices. The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those of regional countries. Some countries levied higher tax rates and hiked oil prices compared to that of Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also levies only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate.

Source: The Global New light of Myanmar

MYANMAR uses the yuan to pay for supplies of Russian petroleum products, Minister of Investment
and Foreign Economic Relations of Myanmar Dr Kan Zaw told Sputnik, adding that the parties are preparing an agreement on the mutual conversion of national currencies.
“We are using yuan and not (paying) with roubles at this moment. But we are trying to make the kyat-
rouble agreement (on the mutual conversion) … (the agreement) is going (to be signed) very soon,” Dr Kan Zaw said on the sidelines of the Eastern Economic Forum (EEF) in Vladivostok.

In addition, Dr Kan Zaw expressed hope that Myanmar would conclude an agreement with Russia on
tourism on the sidelines of the EEF.Last September, Myanmar’s Prime Minister Senior General Min Aung
Hlaing told Sputnik that the country had begun purchasing Russian petroleum products.
Myanmar will begin accepting cards from the Russian Mir payment system in October, Dr Kan Zaw
said. “Mir cards could be used starting from October, I hope,” he said on the sidelines of the Eastern
Economic Forum (EEF) in Vladivostok, adding that an agreement on this issue was signed between the central bank and six commercial banks. The eighth EEF is taking place on the campus of the Far Eastern Federal University in the Russian city of Vladivostok from 10 to 13 September. RIA Novosti is the official media partner of the forum.

Source: The Global New Light of Myanmar

Indonesia-Myanmar Roundtable Dialogue with participants from Indonesian and Myanmar successful entrepreneurs was held at the Sultan Hotel on the same day and stepped up bilateral trade and economic cooperation.

The two countries reaffirmed the commitment to maintain vigorous economic relations at the roundtable dialogue, which took place during the ASEAN Business and Investment Summit held in Jakarta.

The dialogue shed light on promising trade and investment cooperation in various sectors, from best-selling consumer goods to garment manufacturing and energy collaboration and financial and trade transaction matters.

The chair of ASEAN-BAC and the KADIN, Mr M Arsjad Rasjid P M elaborated that “As ASEAN matters as an epicentre of growth, we make sure to leave no one behind. We expect cooperation in the multiple industries of the two nations.

The ASEAN-BAC Myanmar Chair and President of the UMFCCI U Aye Win expressed his deep appreciation to the KADIN for cooperation and support. He highlighted that economic stability plays a pivotal role in accelerating the momentum of regional integration”.

The MoU between the KADIN and UMFCCI covers knowledge sharing, best practices, organizing joint activities like conferences and workshops and prioritizing the promotion of business ventures and projects. Last but not least Indonesia plays a pivotal role in the palm oil supply for Myanmar’s households. Similarly, Myanmar is also crucial in the rice and pulses trade for Indonesia. Thus, dealing with food security is of vital importance, he emphasized in the dialogue.

Source:The Global New Light of Myanmar

Ministry of Commerce’s efforts are to stabilize domestic rice prices and avert escalation

The Ministry of Commerce stated that they have started to use the export licence system, which will be applied only after the rice and rice products to be exported are pre-screened and 100 per cent ready, even though the rice export licence will not be suspended.
The Ministry is working to stabilize domestic rice prices and prevent further price increases. The Ministry also responded to the Myanmar Rice Federation’s submission for a three-month suspension of rice and rice products exports, saying that no suspension will occur. Despite that, they started exercising the export licensing system on 1 September, which will be granted only when 100 per cent of the rice and rice products to be exported are pre-verified and ready.
In addition, the implementation of the system of warehouse registration has already started to stabilize the price of domestic rice, ensure that the price does not rise again, and control the actions of the hoarders to manipulate the market.
As of 21 August 2023, there were 3.449 million tonnes of rice left in the country, and if the 2.371 million tonnes needed for domestic consumption in the three months until November were subtracted, there would be 1.077 million tonnes of rice left. As there is a condition to export rice regularly, there is no need to suspend the export of rice.
A total of 0.928 million tonnes of rice have been exported from October 2022 to 18 August 2023.

Source: The Global New Light of Myanmar

Economic Committee needs to persuade businesspersons to invest in agriculture, livestock and manufacturing industries directly benefiting the State and the people

Two terms of democratic government left more than US$12 billion each of trade deficiency, totalling some $25 billion. These trade deficiencies were propped with cash assistance and loans, said Chairman of the Economic Committee Chairman of the State Administration Council Prime Minister Senior General Min Aung Hlaing at the committee meeting 7/2023 at the SAC Chairman Office yesterday morning.
Amid sanctions and destructions, the Senior General recounted the government strived to promote the State economy to hug above nine per cent of GDP (+3 per cent of GDP in the 2021-22 financial year from -5.9 per cent of GDP in 2019-20 FY).
Currently, the government spends more than US$600 million on the import of cooking oil yearly. Hence, the State economic promotion fund was allotted to ensure local oil sufficiency, with a plan to increase the production of cooking oil at home in 2025 and to shape the country to become an oil exporter country.
The Senior General recounted that attempts were made to hinder the ways for the country not get deserved foreign exchange so as to face economic crises, adding that unscrupulous persons made misinformation to raise commodity prices.
The Senior General stressed the need to prioritize the businesses to have a quick win and instructed officials to take action against manipulators of the commodity prices under the procedures.
The Economic Committee needs to persuade businesspersons of investing in agriculture, livestock and manufacturing industries directly benefiting the State and the people, urging them not to do businesses which can be easy to earn incomes.
As neighbouring countries expose the operation of trade and services based on illegal remittance agencies (Hundi), action must be taken against Hundi agencies that harm the State economy whereas the trade process should be done in linking banks for monetary affairs.
The Senior General pointed out that some banks have not been operating their processes in a correct way since the current government took office. As such, it is necessary to systematically monitor the work processes of banks.
The Senior General underscored that it is necessary to implement Kyaukpyu, Dawei and Thilawa special economic zones to have quick progress to benefit the State and neighbouring and regional countries. Likewise, projects of Kyaukpyu and Dawei deep seaports must be implemented as quickly as possible.
The government must provide impetus to the businesspersons doing business to contribute to the State economy.
The Senior General pointed out that agriculture and livestock zones and industrial zones must be supervised to allocate the land plots to those who will actually run the businesses.
Regarding the tourism sector, the Senior General urged regional and state authorities to make preparations for enhancement of the inbound and outbound tourism services in the open season, and they all must review the measures of State economic promotion.
The Senior General gave guidance that relevant ministries have to cooperate with companies in building crude oil mills and oil refineries at the strategic sites for the production of cooking oil. Use of cultivable lands in other ways must be supervised under the rules and regulations.
Operating economic zones is the best to expedite the momentum of the State’s economic promotion. Officials need to restrict the process for businesspersons not to spend unnecessary payments along the trade routes.
The Senior General stressed the need to upgrade border trade camps in Kampaiti, Muse, Chinshwehaw, Tachilek and Myawady. He unveiled that the government is considering the construction of the Muse-Mandalay railway as well as the Chinshwehaw-Lashio railway. The project of railway from Kyaukpyu deep seaport to Mandalay is being implemented for the improvement of commodity flow. The Senior General instructed officials to strive for the resumption of the Tamu road contributing to the India-Myanmar-Thailand tripartite communication route.
In conclusion, the Senior General underscored that the export of commodities should not harm local consumption, urging all to try hard to secure success in the implementation of the projects.

Source: The Global New Light of Myanmar

THE Central Bank of Myanmar yesterday issued a public notice saying those who keep foreign currencies without permissions or licences will be taken action under the Foreign Exchange Management Law.

The CBM issued a similar notice before in its effort to encourage the people not to keep foreign currencies.

The 20 August notice also referred to Paragraph 15 of the Foreign Exchange Management Rules, issued as Order No 7/2014 by the Central Bank of Myanmar dated 30 September 2014 which states “A resident can possess, for up to six months from the date of receipt, US$ 10,000, or other types of foreign currency in an equivalent amount, if obtained legally by this person.

“If the foreign currency is not used within six months, it shall be sold to, and exchanged by, foreign exchange dealing licence holders at the market price or deposited in a bank account.

” The notice also said under Section 9 of the Foreign Exchange Management Law, purchases and sales of foreign exchange can be carried out only by foreign exchange dealing licence holders in terms of cash and traveller’s cheques.

Source: The Global New Light of Myanmar

Myanmar traders involved in export and import business are not happy with skyrocketing exchange rates, said Daw Khaing Khaing Nwe, the secretary-general of the UMFCCI in a meeting held at the Central Bank of Myanmar on 19 August to discuss the dramatic decrease of Myanmar currency value against foreign counterparts.
“The current exchange rate practising in grey market is unreasonable and is much more than it should be. Basically, changes in exchange rate may vary depending on the demand and supply, but we cannot accept the current situation of unreasonable rise in exchange rate,” she explained in the meeting.
Meeting participants discussed the factors that contribute to skyrocketing exchange rate, measures to be taken to bring the exchange rate to normal and the opportunities to cooperate between organizations and traders in pursuit of stable exchange rate.
Some importers are taking a privilege to buy US dollars at the rate of K2,920 offered by the Central Bank of Myanmar, but they mark the commodity prices in reference with exchange rate of grey market, making consumers to suffer. The UMFCCI and its partner organizations will collaborate to eradicate such unethical dealing practices, according to the presentations at the meeting. Illegal trading is gaining momentum, prompting exchange rate to rise uncontrollably and special investigation teams are cracking them down, said an official at the meeting.

Source: The Global New Light of Myanmar