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Myanmar’s manufacturing output fell for a 12th straight month, with the fall in August being the strongest during the COVID-19 epidemic, according to the survey

Myanmar’s manufacturing output fell for the 12th consecutive month, with the decline in August being the worst during the COVID-19 epidemic, according to the IHS Markit Myanmar Manufacturing PMI (Manufacturing Purchasing Manger’s Index) released on September 1. The rise in Myanmar’s manufacturing PMI from 36.5 in July to 36.5 in August indicates a 12-month slump in manufacturing conditions. 

The rate of decline was significant, with some companies experiencing COVID-19 damage, the most in the survey’s history. Purchasing Manager ‘Index (PMI) New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. Factories closed; Production volumes were further reduced due to weak demand from customers and lack of migrant workers. The decline was significant, with 61 percent of respondents reporting lower production in August than in July, according to the survey.

The supply chain continued to suffer from shortages of raw materials, but the delay in completion was only a tenth in August. According to prices, the shortage of raw materials and the volatility of the dollar exchange rate have led to higher costs for producers in Myanmar. Myanmar’s economy is facing serious consequences due to the epidemic. Vaccination is especially important to control future constraints and demand shocks, said an economist at IHS Markit. 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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CMP garment exports plummet to US$2.5 bln in current FY

Exports of garments manufactured under the cut-make-pack (CMP) system touched a low of US$2.5 billion between 1 October and 30 June in the current FY2020-2021, according to data from the Ministry of Commerce. Myanmar’s garment exports witnessed a decline of over 20 per cent in the past nine months compared with a-year ago period on the back of slump in demand by European Union market, the Ministry of Commerce stated. The figures plunged from over $3 billion in the corresponding period of last FY2019-2020. The garment industry is facing cancellation of order and slump in output, new orders. However, The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller started to resume new orders.

Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted. Nonetheless, the COVID-19 infections are spiking in the country and all the CMP factories are temporarily closed down during the official public holidays. The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries. But, we cannot expect normalcy for now due to the possible disruption in logistics and supply sector and other serious consequences amid the COVID-19 impacts, traders stressed.

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 2015-2016 FY, but it has tripled over the past two FYs. In the 2016-2017 FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018 FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019 FY and $4.8 billion in the 2019-2020 FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

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Manufacturing sector bags $262 mln this FY

The majority of foreign enterprises eye the manufacturing sector for investments in the past ten months (Oct-July) of the current financial year 2020-2021, pumping the estimated capital of US$262 million into 24 projects, the Directorate of Investment and Company Administration stated. The manufacturing enterprises and businesses that need large labour force are prioritized, Myanmar Investment Commission stated.

At present, labour-intensive enterprises are facing financial hardship amid the COVID-19 impacts and the political changes. Myanmar’s manufacturing sector is largely concentrated on garment and textile produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. At present, Myanmar’s garment export drastically dropped on the back of slump in demand by the European Union market. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed.

Myanmar drew foreign direct investment of more than US$3.76 billion in the past ten months of the 2020-2021 financial year, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, the DICA’s statistics indicated. Of 45 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 31 July of the current FY, 24 enterprises pumped FDI into the manufacturing sector. The electricity sector received six large projects and the livestock and fisheries sector, six projects. Other service sector drew five projects while the agriculture sector pulled two projects and one foreign enterprise each entered the industrial estate and the hotels and tourism sectors.

Source: The Global New Light of Myanmar

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Raw materials import by CMP businesses plunge into $1.2 bln nearly ten months

IMPORTS of raw materials by CMP (cut-make-pack) businesses have sunk to US$1.24 billion as of 23 July in current financial year 2020-2021 since October 2020, which reflects a decrease of $558.26 million compared with the year-ago period, according to the Ministry of Commerce. The figures plunged from $1.79 billion registered last FY2019-2020, the Commerce Ministry’s data indicated. Myanmar’s garment exports witnessed a decline of over 20 per cent in the past eight months (Oct-May) of the current financial year 2020-2021 compared with a-year ago period on the back of slump in demand by European Union market. The raw materials import by the CMP businesses fell simultaneously, the Ministry of Commerce stated.

Exports of garments manufactured under the cut-make pack (CMP) system were valued at US$2.2 billion between 1 October and 28 May in the current FY, according to data from the Ministry of Commerce. The figures plunged from $2.7 billion in the corresponding period of last FY 2019-2020. The garment industry is facing cancellation of order and slump in output, new orders. However, The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller start to resume new orders. Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted. Nonetheless, the COVID-19 infections are spiking in the country and all the CMP factories are temporarily closed down during the official public holidays (17-25 July).

The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries. Nevertheless, we cannot still expect normalcy for now due to the possible disruption in logistics and supply sector and other serious consequences amid the COVID-19 impacts, traders stressed. 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 2015-2016 FY, but it has tripled over the past two FYs. In the 2016-2017 FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018 FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019 FY and $4.8 billion in the 2019-2020 FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

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Manufacturing sector attracts $256.8 mln this FY

The majority of foreign enterprises eye the manufacturing sector for investments in the past nine months (Oct-June) of the current financial year 2020-2021, pumping the estimated capital of US$256.85 million into 23 projects, the Directorate of Investment and Company Administration stated. The manufacturing enterprises and businesses that need a large labour force are prioritized, stated Myanmar Investment Commission.

At present, labour-intensive enterprises are facing financial hardship amid the COVID-19 negative impacts and political changes. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Pack basis, and it contributes to the country’s GDP to a certain extent. At present, Myanmar’s garment export drastically dropped on the back of a slump in demand by the European Union market. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed.

Myanmar has drawn foreign direct investment of more than US$3.76 billion in the past nine months of the 2020-2021 financial year, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, the DICA’s statistics indicated. Of 44 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 30 June of the current FY, 23 enterprises pumped FDI into the manufacturing sector. The power sector received six large projects and the livestock and fisheries sector attracted six projects. Other services sectors drew five projects while the agriculture sector pulled two projects and one foreign enterprise each entered industrial estate and the hotel and tourism sectors. 

Source: The Global New Light of Myanmar

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Raw materials import by CMP businesses down by $531mln as of 9 July

Imports of raw materials by CMP (cut-make-pack) businesses has touched a low of US$1.18 billion as of 9 July in the current financial year 2020-2021. It reflects a decrease of $531 million compared with the year-ago period, the Ministry of Commerce stated. The figures plunged from $1.7 billion registered in the last FY2019-2020, the Commerce Ministry’s data indicated. Myanmar’s garment exports witnessed a decline of over 20 per cent in the past eight months (October-May) of the current financial year 2020-2021 compared with a year-ago period on the back of a slump in demand by the European Union market. The raw materials import by the CMP businesses fell simultaneously, stated the Ministry of Commerce. Exports of garments manufactured under the cut-make-pack (CMP) system were valued at US$2.2 billion between 1 October and 28 May in the current FY, according to data from the Ministry of Commerce.

The figures plunged from $2.7 billion in the corresponding period of the last FY2019-2020. The garment industry is facing cancellation of the order and a slump in output, new orders. However, The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller starts to resume new orders. Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted. Nonetheless, the COVID-19 infections are spiking in the country, and all the CMP factories are temporarily closed down during the official public holidays (17-25 July). The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries.

Nevertheless, we cannot still expect normalcy for now due to the possible disruption in the logistics and supply sector and other serious consequences amid the political instabilities and the COVID-19 impacts, traders stressed. Myanmar Garment Manufacturers Association (MGMA) reported in the June newsletter that 502 factories are actively running the business. The factories include foreign investment, domestic investment and joint venture businesses. China constitutes a majority of the foreign investment with 267 factories. Myanmar’s manufacturing sector recorded an accelerated downturn in the previous months as political changes and the COVID surge led to factory closures. The layoff is extended, and some workers were forced to return to their hometowns. Turning to prices, higher material costs and unfavourable exchange rate movements contributed to a sharp increase in cost burdens, the HIS Markit stated.

More than 500 members and over 700 garment factories in Myanmar are listed on the MGMA, with about 600,000 workers. Women account for 95 per cent of workers in the garment industry. However, a third of garment industry workers are out of jobs in difficult times. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packing basis. 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

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Production and new orders continue to fall in Myanmar’s manufacturing sector, with kyat-denominated exchange rate speculation against the dollar, scarcity of raw materials and rising in shipping costs

Production and new orders continue to fall in Myanmar’s manufacturing sector, with kyat-denominated exchange rate speculation against the dollar and prices continue to rise due to scarcity of raw materials and rising shipping costs, according to the Nikkei Myanmar Manufacturing PMI for June 2021 (Manufacturing Purchasing Manager’s Index). Many factories and customers’ businesses were closed, leading to a decline in jobs and purchases. During this period, the kyat was devalued against the dollar. Respondents often pointed out that prices continued to rise due to scarcity of raw materials and rising shipping costs.

The single IHS Markit Myanmar Manufacturing PMI, the only key indicator of productivity, rose from 39.7 in May to 41.5 in June, indicating a tenth consecutive month of decline in manufacturing conditions. Productivity by local producers in Myanmar fell further in June, but at a weaker rate. At the end of the second quarter, domestic demand remained weak and new orders fell sharply. The decline has been linked to a shortage of cash and a rise in prices. Overall, the current decline is one of the highest in the survey’s five-and-a-half-year history.

The workforce continued to decline sharply, with respondents pointing to workers returning to their hometowns. Despite the weakening of demand, raw material shortages and factory closures led to a sharp rise in backlog in June. In terms of prices, inflation in production costs rose, but weakened from a record high in May. Respondents said the exchange rate was deteriorating; They continue to point to shortages of raw materials and rising transportation costs. Companies reported shifting part of the initial cost burden, and the inflation rate for selling prices was the second highest in the survey so far. The survey is based on original data collected from industry by IHS Markit and supported by the Japan-based Nikkei Media Group.

Source: Daily Eleven

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Manufacturing exports down by $1.86 bln in nearly nine months

Exports of finished industrial goods drastically plummeted to US$5.14 billion in nearly nine months (1 October-25 June) of the current financial year 2020-2021, an extreme drop of $1.86 billion compared with the corresponding period of the previous FY, according to the Ministry of Commerce. As per figures provided by the ministry, the exports of finished industrial goods exceeded $7 billion during the same period in the 2019-2020FY. The IHS Markit Myanmar Manufacturing Purchasing Managers’ Index, a composite single-figure indicator of manufacturing performance, signalled the sharpest deterioration in manufacturing business conditions in the previous months. The higher material costs and unfavourable exchange rate movements contributed to a sharp increase in cost burdens, causing constraints to complete the order.

It can do more harm to the foreign investment sector if the problem is still not resolved. The PMI measures the output, new orders, performance, delays in the manufacturing process and stocks of both inputs and finished goods, according to HIS Markit’s statement. The layoff is extended and the workers are forced to return to their hometowns amid the political instability and the COVID-19 resurgences. Nevertheless, the Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller starts to resume new orders. Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted.

Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent. Myanmar’s garment exports witnessed a decline of over 20 per cent in the past eight months (October-May) of the current financial year 2020-2021 compared with a year-ago period on the back of a slump in demand by the European Union market, the Ministry of Commerce stated. Myanmar’s garment industry has been facing challenges such as raw material supply disruption and cancellation of orders amid the pandemic.

Additionally, the surging COVID-19 cases posed impediments to the industry, a market observer shared his opinion. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. The garment sector is among the prioritized sectors driving up exports. The CMP garment industry has emerged as a promising one, with preferential trade from Western countries. Yet, the current political changes in the country are likely to aggravate the garment industry, traders stressed. Myanmar’s garment factories operate under the CMP system, and those engaged in this industry are striving to transform CMP into a free-on-board (FoB) system.

As the factories cannot enter into a contract for FoB, Own Design Manufacturing (ODM) and Own Business Manufacturing (OBM), the income is limited, according to the MGMA. Exports of garments manufactured under the cut-make-pack (CMP) system were valued at US$4.798 billion in the last financial year2019-2020, according to data from the Ministry of Commerce. Although the sector is struggling due to the cancellation of the order from the European countries and suspension of trading by western countries during the pandemic, export values rose in the previous FY (1 October 2019-30 September 2020). More than 500 members and over 700 garment factories in Myanmar are listed on the MGMA, with an employment of over 400,000 workers. However, a third of garment industry workers are out of jobs in difficult times.

Source: The Global New Light of Myanmar

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Emerald shoe factory workers strike

Manufacturing sector attracts $254 mln this FY

The majority of foreign enterprises eye the manufacturing sector for investments in the past eight months (Oct-Apr) of the current financial year 2020-2021, pumping the estimated capital of US$254 million into 23 projects, the Directorate of Investment and Company Administration stated. The manufacturing enterprises and businesses that need a large labour force are prioritized, Myanmar Investment Commission stated. At present, labour-intensive enterprises are facing financial hardship amid the COVID-19 negative impacts and political changes. 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.

At present, Myanmar’s garment export drastically dropped on the back of a slump in demand by the European Union market. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. The factories are facing cancellation of order and slump in output, new orders. However, the Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller starts to resume new orders.

Myanmar has drawn foreign direct investment of more than US$3.7 billion in the past eight months of the 2020-2021 financial year, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, the DICA’s statistics indicated. Of 44 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 31 May of the current FY, 23 enterprises pumped FDI into the manufacturing sector. The power sector received six large projects and the livestock and fisheries sector attracted six projects. Other service sector drew five projects while the agriculture sector pulled two projects and one foreign enterprise each entered industrial estate and the hotel and tourism sectors.

Source: The Global New Light of Myanmar

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CMP garment exports drop by 20 per cent in eight months

Myanmar’s garment exports witnessed a decline of over 20 per cent in the past eight months (Oct-May) of the current financial year 2020-2021 compared with a year-ago period on the back of a slump in demand by the European Union market, stated the Ministry of Commerce. Exports of garments manufactured under the cut-makepack (CMP) system were valued at US$2.2 billion between 1 October and 28 May in the current FY, according to data from the Ministry of Commerce. The figures plunged from $2.7 billion in the corresponding period of the last FY2019-2020. The factories are facing cancellation of order and slump in output, new orders. However, The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller start to resume new orders. Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, posted the Germany Embassy Yangon’s Facebook.

The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries. Nevertheless, all cannot still expect normalcy for now due to the possible disruption in the logistics and supply sector and other serious consequences amid the political instabilities and the COVID-19 impacts, traders stressed. The Myanmar Garment Manufacturers Association (MGMA) reported in the May newsletter that 564 factories are actively running the business, and 177 has no operation. The factories include foreign investment, domestic investment and joint venture businesses. China constitutes the majority of the foreign investment with 302 factories. Myanmar’s manufacturing sector recorded an accelerated downturn in the previous months as political changes led to factory closures. The layoff is extended, and some workers were forced to return to their hometowns. Turning to prices, higher material costs and unfavourable exchange rate movements contributed to a sharp increase in cost burdens, the HIS Markit stated.

More than 500 members and over 700 garment factories in Myanmar are listed on the MGMA, with an employment of about 600,000 workers. Women account for 95 per cent of workers in the garment industry. However, a third of garment industry workers are out of jobs in difficult times. Myanmar’s manufacturing sector is primarily concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis. It contributes to the country’s GDP to a certain extent. Myanmar mainly exports CMP garments to markets in Japan and Europe and the Republic of Korea, China, and the US. The export value of CMP garments was only $850 million in the 2015-2016 FY, 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). According to the Commerce Ministry, it tremendously grew to $4.6 billion in the 2018-2019FY and $4.8 billion in the 2019-2020FY.

Source: The Global New Light of Myanmar