4 enterprises pump $5.99 mln of FDI into manufacturing sector in April

by MANUFACTURING

Only the manufacturing sector attracted foreign direct investment in April 2022 of the 2022-2023 financial year, as per the statistics released by the Directorate of Investment and Company Administration (DICA).
Four enterprises from China and Hong Kong SAR put an estimated capital of US$5.99 million into the manufacturing sector last month. Manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community, according to the Myanmar Investment Commission.

Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination programme for workers, as per the HIS Markit’s September report. Myanmar’s manufacturing sector is largely concentrated in garments and textiles produced on the Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises during the October-March period.

Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping the estimated capital of $202.667 million in the past mini-budget period (October 2021-March 2022). Additionally, the agriculture sector drew one project worth of $5 million. The livestock and fishery sector attracted two enterprises with investments of more than $19 million. Power, construction and hotels and tourism sectors have one new project each in the past mini-budget period and three other enterprises invested in other service sectors. 

Source: The Global New Light of Myanmar

Imports slide to $7.6 bln as of 25 March, MoC reports

by MANUFACTURING

The value of Myanmar’s imports between 1 October and 25 March of the past mini-budget period 2021-2022 (Oct-Mar) slightly narrowed to US$7.6 billion, which reflects a drop of $24 million compared to the year-ago period, the Ministry of Commerce’s data indicated. The import value stood at US$7.64 billion last FY 2020-2021. The imports of capital goods declined last month, while the other import groups (consumer, intermediate goods, and CMP businesses) increased.

Last month, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts, were brought into the country. Their import value was estimated at $1.43 billion. The figure was over $1.3 billion lower than those values registered in the same period of the previous FY. Meanwhile, Myanmar imported consumer products worth $1.65 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed an increase of $73.8 million compared with the same period in the previous FY.

Intermediate goods make up the largest share of Myanmar’s imports, with the main imports of petroleum products and plastic raw materials. This year, imports of raw materials climbed up to $3.4 billion from $2.5 billion registered during the year-ago period. During the same period, raw materials worth over $318.3 million were also imported for the Cut-Make-Pack (CMP) garment sector, increasing by $1.12 billion compared with last FY. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data from the Ministry of Commerce.

Source: The Global New Light of Myanmar

In some industrial zones in Yangon Region, electricity will only be available from 9 am to 5 pm and there will be no power outage at night

by MANUFACTURING

Some industrial zones in Yangon Region will only have electricity from 9 am to 5 pm and there will be no power outages at night, according to the industrial zone committees on March 17. An official from the Shwelinban Industrial Zone Committee said that the power supply will be cut off from 9 am to 5 pm and the power will be cut off from 5 pm to 9 am the next day. It will be paid regularly from 9:00 am to 5:00 pm and will be canceled from 5:00 pm to 9:00 am the next day. During the day from 9 am to 5 pm. It is coming to us tonight, said an official from the Shwelinban Industrial Zone Committee.

An official from the Hlaing Thar Yar Industrial Zone said that the fire would be lit from 9 am to 5 pm and it was not yet known whether the fire would be extinguished from 5 pm to 9 am the next day. An official from a company in Thaketa Industrial Zone told the company that the township electricity would be turned off from 5 pm to 9 am the next day. Our company will be turned off from 5 pm until 9 am the next day. The electricity will be available from 9 am to 5 pm only. So I asked him if he would like to work full-time for eight hours, and he said he was not sure if he would do so, said an official from the company.

At present, most of the townships in Yangon have more power outages than the power outage. The fire did not come regularly. Rising fuel prices have led to higher fuel costs in most factories in industrial zones and reduced overtime for workers. Hlaing Thar Yar Industrial Zone in Yangon Region; Shwe Lin Ban Industrial Zone, Shwe Thanlwin Industrial Zone, Shwe Pyi Thar Industrial Zone, Shwe Paukkan Industrial Zone, South Dagon Industrial Zone 1, 2, 3, South Okkalapa Industrial Zone North Okkalapa Township There are 29 industrial zones such as Thaketa Industrial Zone.

Source: Daily Eleven

Manufacturing sector attracts over $138 mln in October-February

by MANUFACTURING

The majority of foreign enterprises eye the manufacturing sector for investments, pumping the estimated capital of US$138.6 million into 25 projects in the past five months of the current mini-budget period (October 2021-March 2022), as per the statistics released by the Directorate of Investment and Company Administration (DICA). The manufacturing enterprises and businesses that need a large labour force are prioritized, according to the Myanmar Investment Commission.

At present, labour-intensive enterprises are facing financial hardships amid the COVID-19 negative impacts and political changes. Myanmar’s garment export drastically dropped on the back of a slump in demand by the 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 $530.77 million from 34 enterprises during the October-February period. The investments are flowing agriculture, livestock and fisheries, manufacturing, power, construction, transport and communication, hotel and tourism and other services sectors, including expansion of capital by existing enterprises, the DICA’s statistics indicated.

Source: The Global New Light of Myanmar

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Myanmar’s manufacturing sector hit a record high in February due to weak purchasing power and power outages, according to the survey

by MANUFACTURING

Myanmar’s manufacturing sector rose to a record six-year high in February due to weak purchasing power and power outages in February, according to the IHS Markit Myanmar Manufacturing PMI (Manufacturing Purchasing Managers’ Index) released on March 1. Weaknesses in purchasing power combined with power outages led to the highest rate of work in the survey’s six-year history. For the third straight month, inventories rose to a record high. Myanmar’s manufacturing PMI stood at 47.3 in February, down from 48.5 in January. For the 18th straight month, the PMI fell below 50 points. The February data shows a common chart for companies in Myanmar that are struggling on the downside. 

As new orders and procurement fell sharply, inventories rose at a record high in the survey. Political instability; Power outages; They also reported further epidemics and scarcity of raw materials, said an economist at IHS Maekit. At the beginning of 2022, operating conditions in Myanmar’s manufacturing sector declined more rapidly, with production falling for 17 consecutive months, according to a February survey. According to a survey released at the end of 2021, Myanmar’s manufacturing output remained the most economically affected in Asia by the end of 2021. The survey also found that employment volumes fell again during the period and jobs were cut.

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. Outcomes have risen sharply as companies have struggled to find skilled workers and raw materials. Myanmar’s economy remains one of the worst-hit economies in Asia in 2021. According to the IHS Maekit Myanmar Manufacturing PMI released on November 1. Purchasing Manager ‘Indes (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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CMP raw materials import peaks to $918.89 mln as of 11 February

by MANUFACTURING

Imports of raw materials by CMP (cut-make-pack) businesses have soared to US$918.89 million as of 11 February in the current six-month mini-budget period 2020-2021 since October 2020, which reflects an
increase of $107 million compared with the year-ago period, according to the Ministry of Commerce. The
figures rose from $728.38 million registered the last FY2020-2021, the Commerce Ministry’s data indicated. Myanmar’s garment exports witnessed a decline of over 20 per cent last year on the back of a slump in demand by the European Union market.

The raw materials imported by the CMP businesses fell simultaneously, stated the Ministry of Commerce. 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. Exports of garments manufactured under the cut-makepack (CMP) system were valued at US$3.6 billion in the last FY2020-2021, according to data from the Myanmar Customs Department. The garment sector is among the prioritized sectors driving up exports.

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 2015-2016FY, 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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Manufacturing sector attracts $75.6 mln in Oct-Nov

by MANUFACTURING

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

by MANUFACTURING

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

by MANUFACTURING

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

by MANUFACTURING

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