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Manufacturing sector attracts $75.6 mln in Oct-Nov

Majority of foreign enterprises eye the manufacturing sector for investments, pumping the estimated capital of US$75.6 million into eight projects in the past two months of the current mini-budget period, 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 the political changes.

Myanmar’s garment export drastically dropped on the back of slump in demand by European Union market in the previous months. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. Nonetheless, the industry is returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report.

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 has drawn foreign direct investment of more than $234.5 million from 13 enterprises during October-November period. The investments are flowing agriculture, livestock and fisheries, manufacturing, power, construction, transport and communications, hotels and tourism and other services sectors, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, the DICA’s statistics indicated.

Source: The Global New Light of Myanmar

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Employment in the domestic sector fell again last November, cutting jobs during the last 21 months, according to the survey

According to the IHS Markit Myanmar Manufacturing PMI (Manufacturing Purchasing Manager’s Index) released on December 1, employment in the domestic sector fell again last November and cut jobs in the last 22 months in the last 22 months. Employment rates fell again in November, with 21 job cuts in the last 22 months, according to the survey. Despite low production demand and reports of workers returning to their homes, most respondents pointed out that workers were voluntarily leaving in search of better-paying positions. As a result, companies have been particularly difficult to find skilled workers and raw materials, and surplus work has risen sharply, the survey said.

The surplus increase was the second-highest in the survey’s history, surpassing the rate seen in October. Imports rose 14 consecutive months, and pressure on production costs continued to rise in November. In addition to the scarcity of raw materials, these conditions have been linked to higher oil prices and higher freight rates. Due to the epidemic restrictions and the lack of access to imports, supplies continued to be cut off in November, significantly increasing the average supply period for imports. However, the Myanmar Manufacturing PMI rose to 46.7 in November. The October PMI was just 43.3.

Myanmar’s manufacturing PMI rose slightly in November, but remained below the unchanged PMI of 50. Myanmar’s economy remains one of the worst-hit economies in Asia in 2021. According to the IHS Markit Myanmar Manufacturing PMI released on November 1. Of the ASEAN countries, Myanmar was the only ASEAN country to decline in manufacturing last October, according to the IHS Markit ASEAN Manufacturing PMI Index released on November 2. The PMI survey for the above ASEAN countries was conducted in seven countries including Singapore, Malaysia, Indonesia, Philippines, Thailand, Vietnam, and Myanmar. Purchasing Manager’s Index (PMI) New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. 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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Raw materials import by CMP businesses stand at $179 mln as of 5 November

The imports of raw materials by CMP (cut-make-pack) businesses edged up to US$179.9 million as of 5 November in the current mini-budget period 2021-2022 (Oct-Mar), which reflects a slight increase of $24.5 million compared with the year-ago period, according to the Ministry of Commerce.

Myanmar’s manufacturing sector is largely concentrated on garment and textiles produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. The garment industry faced cancellation of order and slump in output, new orders, coupled with the market manipulation in the forex market.

However, the industry is now getting back to normalcy after the COVID-19 vaccination programme. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the United States of America. Exports of garments manufactured on the CMP basis touched a low of S$3.6 billion between 1 October and 30 September in the past financial year 2020-2021, according to the data from the Ministry of Commerce.

Source: The Global New Light of Myanmar

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Of the ASEAN countries surveyed in October, Myanmar was the least productive, according to the survey

Of the ASEAN countries surveyed in October, only Myanmar saw a decline in manufacturing conditions, according to the IHS Markit ASEAN Manufacturing PMI (Manufacturing Purchasing Manager’s Index) released on November 2. The survey was conducted in seven ASEAN countries such as Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam and Myanmar. They have seen progress in a wide range of countries except Myanmar. Indonesia topped the survey with a record PMI, followed by Singapore, Malaysia and Thailand. Malaysia and Vietnam are following, with the last two countries reporting the first increase in their output since May. 

The Philippines and Thailand also saw record improvement in October, said Lewis Cooper, an economist at IHS Markit. ASEAN’s manufacturing PMI rose to 53.6 in October, signaling the first growth in ASEAN manufacturing conditions since May 2021 (five-month period). When statistics were compiled for the survey in 2012. It has become one of the fastest rates since July, according to the survey. Among the ASEAN manufacturing PMIs in October, Indonesia topped the PMI by 57.2. With a PMI of 54.5, Singapore is firmly established in the manufacturing sector. Malaysia has a PMI of 52.2. It is showing the fastest progress since April. Vietnam has a PMI of 52.1 in 2021. 

For the first time since May, the situation has shown moderate improvement. The Philippines and Thailand saw only a tenth increase in their manufacturing sectors. The Philippines has a PMI of 51 and Thailand has a PMI of 50.9. Finally, the survey found that Myanmar was the only ASEAN country to show a decline in operating conditions in October. Myanmar’s PMI of 43.3 indicates the weakest decline in 10 months since January, but a sharp decline. Myanmar’s economy remains one of the worst-hit economies in Asia in 2021. According to the survey, production in ASEAN was record-breaking in October, both in terms of production and new orders. Purchasing Manager’s Index New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. The survey is based on survey data collected by industry by the IHS Nikkei and sponsored by the Japan-based Nikkei Media Group.

Source: Daily Eleven

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In the first 11 months of the 2020-2021 fiscal year, the CMP garment sector was the largest exporter with over US $ 3,240 million, followed by natural gas with over US $ 2,693 million

In the 11 months from October to the end of August of the 2020-2021 fiscal year, Myanmar exported more than $ 3,240 million worth of garments from the CMP sector, followed by natural gas at more than $ 2,693 million, according to the Ministry of Commerce. In the 11 months from October to August of the 2020-2021 fiscal year, Myanmar exported $ 3,240.04 million worth of garments through the CMP wage system. Exports of natural gas were $ 2,693.78 million and rice and broken rice were $ 661.41 million.

In the 11 months to August of the 2020-2021 fiscal year, Myanmar topped the list of top 10 exporters with $ 4,760.55 million, followed by Thailand with $ 3,002.05 million. $ 855.20 million to Japan; $ 729.97 million to India; $ 566.66 million to the United States; $ 397.42 million to Germany; $ 361.16 million to Spain; $ 352.47 million to the UK; $ 324.26 million to the Netherlands; It exported $ 278.58 million to South Korea.

From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar-China trade amounted to more than $ 12.126 billion, and China imported more than $ 6.724 billion worth of imports. From October to September of the 2019-2020 fiscal year, Myanmar-China trade amounted to $ 12126.278 million, with exports from Myanmar worth $ 5,401.943 million and imports from China worth $ 6,724.335 million. The main priority areas of the National Export Strategy 2020-2025 are agro-based food production, textiles and clothing; Industry and electronics; Fisheries sector; Forest products; Digital products and services; Logistics services; Quality management sector; Trade Information Services; And innovation and entrepreneurship.

Source: Daily Eleven

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Manufacturing sector attracts $286 mln last FY

Majority of foreign enterprises eye the manufacturing sector for investments in the last financial year 2020-2021, pumping the estimated capital of US$286 million into 27 projects, the Directorate of Investment and Company Administration stated. The manufacturing enterprises and businesses that need large labour force are prioritized, the Myanmar Investment Commission stated. At present, labour-intensive enterprises are facing financial hardship amid the COVID-19 negative impacts and the political changes.

Myanmar’s garment export drastically dropped on the back of slump in demand by European Union market in the previous months. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. Nonetheless, the industry is returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report. Myanmar’s manufacturing sector is largely concentrated on garment and textiles produced on a Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent.

Myanmar drew foreign direct investment of more than $ 3.79 billion in the last FY, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, the DICA’s statistics indicated. Of 48 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 30 September of the FY 2020-2021, 27 enterprises pumped FDI into the manufacturing sector. Power sector received six large project and livestock and fisheries sector attracted six projects. Other service sector drew five projects while 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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Myanmar’s manufacturing output rose slightly in September, but fell for 13 straight months, according to the survey

Myanmar’s manufacturing output rose slightly in September but fell for 13th straight months, according to the HIS Markit Myanmar Manufacturing PMI, the Manufacturing Purchasing Manager’s Index released on October 1. Myanmar’s manufacturing PMI, the most important indicator of productivity, stood at 41.1 in September, up from 36.5 in August. However, the PMI index remained below 50 points for 13 consecutive months without significant change.

The production situation in Myanmar is the same as in the year 2020. The survey showed a monthly decline since September. The decline in production and new orders in September was significantly weaker than last August. Drops in production and new orders are likely to weaken significantly over the past two months, and efforts to vaccinate could be hampered by a fourth wave. For now, companies are eagerly awaiting the lifting of restrictions and want to resume operations and clear inventories, said an economist at the IHS market.

A look at prices shows that international shortages of raw materials and unfavorable exchange rate speculation have put pressure on inflation, leading to a significant increase in purchasing and selling costs. In response to rising costs, companies raised their sales, becoming the fourth largest in survey history. Sales prices have risen for the 10th straight month. Purchasing Manager’s Index (PMI) New orders Workplace Five indicators are calculated: suppliers’ supply duration and stockpiles. The survey is based on original data collected from industry by HIS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

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Since February, 38 factories have been closed in Hlaing Tharyar Industrial Zone and Shwe Thanlwin Industrial Zone in Hlaing Tharyar Township, leaving nearly 10,000 workers unemployed

Hlaing Tharyar Industrial Zone and Shwe Thanlwin Industrial Zone in Hlaing Tharyar Township have closed 38 factories since February, and nearly 10,000 workers lost their jobs, according to the Industrial Zone Committees on September 23. There are 29 factories in Hlaing Thar Yar Industrial Zone that have been temporarily closed since February. About 7,000 workers have lost their jobs as a result of the closure of the 29 factories, according to an official from the Hlaing Thar Yar Industrial Zone Committee. 

This year, 29 factories have been closed in Hlaing Thar Yar Industrial Zone. This year, starting in February. What they are submitting to us is that the block is temporarily closed. As for the salaries of the workers, if the factory closes, they will have to pay compensation. As far as it is concerned, about 7,000 workers have lost their jobs due to the closure of those 29 factories, said an official. Similarly, in Shwe Thanlwin Industrial Zone, there are nine factories that have been temporarily closed and closed. An official from the Shwe Thanlwin Industrial Zone Committee said that the closure of the nine factories had left nearly 3,000 workers unemployed.

In Shwe Thanlwin Industrial Zone, there were 12 closed factories. Of the 12 factories, only three have been reopened, with only nine remaining. From January this year until now. When it comes to workers’ salaries and wages, It is closed after clearing everything. Some factories are said to be closed, but others are temporarily closed. There are relocations. Add to that the closure of these factories, bringing the total number of unemployed to more than 2,000. Because some factories alone have about a thousand workers. Some factories are small. So, in total, more than 2,000. There are almost three thousand. It is an estimate, said an official from the Shwe Thanlwin Industrial Zone Committee. 

On September 21, the Myanmar Unique garment factory in Hlaing Tharyar Industrial Zone was temporarily closed due to a lack of orders. The factory has not received orders from the factory since 2020. Due to Kovis disease; According to a factory official, the factory will be temporarily closed from September 21 due to political reasons. The Myanmar Unique factory also had layoffs during the Kovis period, and the remaining workers were legally compensated when it was temporarily closed. The factory has been operating for about five years. Currently, there are more closed factories and more unemployed workers in Burma, according to labor representatives.     

Source: Daily Eleven

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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