Weekly Business News from Myanmar

Myanmar’s annual inflation rate keeps dropping to 5.8 percent in September 2020 due to the COVID crisis
The annual rate of inflation in Myanmar, based on the Consumer Price Index, continued dropping to 5.8 per cent in September 2020 owing to demand slump triggered by the COVID effects, according to a report released by the Central Statistical Organization under the Ministry of Planning, Finance and Industry. The US dollar against Myanmar kyat is relatively weak in September, with a fall of about K35 than the previous month and a sharp drop of K176 against a year-ago period. However, the gold price significantly rose in September on the back of global cues. The imported oil price dropped against August’s rate, causing the price index in the transportation group to slump. Nevertheless, there was a remarkable increase in CPI for the food group, household goods and maintenance, other commodities, clothing, education services, recreation, culture and non-food. The price index of education, telecommunication and non-food groups is stable amid the COVID-19. The price of transportation and tobacco and beverages dropped, the report stated. Starting from August 2019, the consumer price index rose, and the inflation rate has remained above 8 per cent since June 2019. It reached a peak of 8.61 per cent in September and dipped in November. It touched the highest level at 8.81 per cent in December 2019 because of the high season.
Myanmar Agricultural Development Bank (MADB) provide K 1.3 billion loans for 13,191 acres of winter paddy cultivation in Mohnyin Township, Kachin State
Myanmar Agricultural Development Bank in Mohnyin Township, Kachin State is providing K100,000 per acre to 116 local winter crop growers at 10:30 am on 20 November. The three village banks from the township are providing the winter crop loans for 697 acres of farmlands. When MADB provided the loans to the local farmers, the bank issued the loans through the three village banks to prevent the people from being crowded to be under the Ministry of Health and Sports instructions. The MADB from Mohnyin township targeted to provide the winter crop loans by the end of December. There are about 15 village banks in Mohnyin township, and a total of 1,872 local farmers will grow winter crops this year. The bank targeted to provide K1.3 billion loans for 13,191 acres of farmland.
Global Agriculture Joint Venture Co., Ltd will invest USD $ 115 million in private teak plantation and producing teak
Britain-based Global Agriculture Joint Venture Co. will invest $115 million in establishing the private teak plantation and producing teak, according to the Directorate of Investment and Company Administration. The company will invest in establishing teak plantations and produce teak in Okkan Forest Reserve number 38, 39, 40, and 41 in Taik Kyi Township, Yangon Region and Thonesel Forest Reserve number 64, 65, 66, 67, 68, 69, 74, and 41 in Tharyarwady Township, Bago Region. The Ministry of Natural Resources and Environmental Conservation has stopped timber production and imposed ten years ban on the production of teak and hardwood from Bago mountain ranges.
Myanmar imported over USD $ 1.2 billion worth machinery and spare parts in the past 2019 – 2020 financial year
The import value of Myanmar’s machinery and spare parts has estimated at over US$1.2 billion during the past financial year 2019-2020, the Ministry of Commerce’s data indicated. Similarly, the country imported $899.89 million worth vehicles and spare parts. Imports of commercial vehicles and machinery have been permitted through seaports and three border gates — Muse, Myawady, and Tachilek. “Starting from 1 January, imports of commercial vehicles on a company licence are not allowed. Importers are required to operate a car showroom in line with the prescribed rules and regulations. However, the new policy can pose difficulties for traders conducting business on a manageable scale,” said importers.
CMP garment exports rise in the last 2019 – 2020 financial year despite COVID – 19 crisis
Myanmar’s garment export sector, which constitutes over 20 per cent of overall export value, stepped up amid the coronavirus impacts. Exports of garments manufactured under the cut-make-pack (CMP) system were valued US$4.798 billion in the last financial year 2019-2020, according to the data from the Ministry of Commerce. Although the sector is struggling because of the cancellation of order from the European countries and suspension of the trade by western countries amid the pandemic export values, rose in the previous FY. The export value of CMP garments was only $850 million in the 2015-2016 financial year, but it has tripled over the last 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, according to the Commerce Ministry.
Myanmar imports nearly USD $ 3.14 billion worth fuel oil in 2019 – 2020 financial year
Myanmar spent nearly US$3.14 billion importing over 5 million tonnes of diesel and gasoline in the 2019-2020 financial year, according to the trade data released by the Ministry of Commerce. Over 5 million tonnes of fuel oil with an estimated value of $3.26 billion flowed into the country during 2018-2019FY, the trade data issued by the Central Statistic Organization indicated. The oil and gas sector has been crashed during COVID-19 outbreak. Oil price went negative on 20 April as there is no place to store all the crude the world is producing, but not using. The global market remains broken, leading domestic oil price plunge to more than 50 per cent in April against January’s prices. Consequently, domestic oil prices have been on the decline since 10 January 2020 owing to a fall in global oil prices. On 8 January 2020, oil prices were pegged at around K905 per litre for Octane 92, K995 for Octane 95, and K985 for diesel and premium diesel. Then, the prices in the domestic market have extended its drop in May
Myanmar earned nearly USD $ 850 million from fishery export in 2019 – 2020 financial year
Myanmar fetched US$ 847.5 million from exporting over 600,000 tonnes of fisheries products during the period from 1 October 2019 to late September this financial year, an increase of some US$126 million from the year-ago period, according to figures released by the Ministry of Commerce. Myanmar’s fisheries export was worth US$721.865 million during the same period last year. The Department of Fisheries under the Ministry of Agriculture, Livestock and Irrigation set a record for foreign income from fishery exports over a period of ten years. The department is working closely in collaboration and coordination with foreign agencies such as FAO and JICA and other regional and international organizations related to fisheries in order to strengthen capacity building on improving fishery statistics collection and interpretation. The department is closely working with the fish breeders, processors and exporters to ensure Myanmar marine products meet the rules and regulations of importing countries. At the same time, fishery officials are trying utmost to conserve fishery resources as well as ensure sustainable development in the country’s fishery sector.
The plans are underway to reform agricultural sector after COVID – 19 pandemic
Plans are underway to reform the agricultural sector after COVID-19, according to the Ministry of Agriculture, Livestock Breeding and Irrigation. The government allowed Ks 92.61 billion for people aiming to cushion the impacts upon the agricultural sector and to develop socio-economic life of the rural people due to the COVID-19 pandemic , says Dr Aung Thu, Union Minister for Agriculture, Livestock Breeding and Irrigation. Thus Myanmar had drawn the COVID-19 Economic Relief Plan-CERP which is a timely intervention by the incumbent government to cushion financial, social and economic impact of COVID-19 pandemic.
The watermelon trucks are stranded at Myanmar – China border checkpoints due to the tight security measures
Tight security measures at Kyin San Kyawt and Mang Weing checkpoints on Myanmar-China border have resulted in a slowdown in the entry/exit process and a hundred of trucks queuing up at the checkpoint, fruit traders said. During the previous weeks, around 100 trucks of watermelons and muskmelons could pass through Kyin San Kyawt border checkpoint. The inspection at China’s checkpoint takes longer for drivers beginning from 16 November, and only 50 trucks can enter border crossing. If around 200 watermelon/muskmelon trucks enter the Muse land border, the traffic congestion will worsen. Muse depot traffic control is monitoring the trucks at its upmost, said the owner of Khwar Nyo Fruit Depot.
Myanmar received over USD $ 25.3 billion in FDI in the past five years under the incumbent government
Myanmar has received over US$25.3 billion in foreign investment under the ruling government over the past five years, with largest investment in manufacturing, transport and communications sectors, according to Myanmar Investment Commission. From 2016-2017 fiscal year to October this year, nearly 980 businesses invested US$23.934 billion in Myanmar. Under the special economic zone law, Thilawa SEZ has received US$1.377 billion invested by 60 businesses.