Weekly Business News from Myanmar

Myanmar Coffee Association expected export market recovery in the coming months of current fiscal year
Myanmar’s coffee beans exports are dropping as against last year, and Myanmar Coffee Association is expecting a recover of market in the coming months, said an official of the association. The impacts of coronavirus hurt coffee industry as the lockdown and physical distancing caused a reduction in consumption. The COVID-19 crisis changed the dynamics of coffee consumption during recent months and roasters, cafe owners and distributors are identifying specific trends in Asian markets that may expedite a recovery to a new normal, according to ASEAN Coffee Federation. “Myanmar primarily produces Arabica coffee. Specialty coffee fetches as much as US$4,500-10,000 per ton. Myanmar’s specialty coffee beans are highly demanded due to their high quality and organic production,” said U Myo Aye, chair of the Myanmar Coffee Association. “Myanmar’s coffee has already earned a good reputation. It has penetrated markets in Asia such as Hong Kong and Singapore, European countries, and the US, and it has a good potential in the global market,” said an official from the Agriculture Department.
Five small scales Octane 92 mini refineries will be built in Magway Region after Regional Government call tenders
Five small scale Octane 92 refineries will be built in Magway Region after the Magway Regional Government has invited tenders for the projects to be implemented on 200 acres of land in Chaukkan Village in Pakkoku Township. These refineries will become the country’s first ones to refine Octane 92 as other refineries in the country can only refine Octane 68. The new refineries will refine oil from small scale wells in the region. The project is worth more than $5 million investments and required the approval from the union government.
European Union (EU) Myan Ku Fund assistance to factory worker reached K 4 billion in four months
Garment workers who have lost their jobs due to the COVID-19 pandemic continue receiving financial assistance through a €5 million K7.9 billion European Union emergency cash fund, “Myan Ku”. Between 1 May and 3 August, halfway through the initiative, “Myan Ku” has distributed emergency cash payments to laid-off and suspended workers, reaching 45,061 payments, equivalent to over K4 billion (or €2.5 million) in total assistance provided so far. “Myan Ku supports us during a time when we really need it so everyone who receives such assistance from the fund will be secure for a while and they will also be happy like me. I also want to get my job back as soon as possible to support my family.” said Ms Shunn Lae Nway, a garment factory quality controller who lost her job in May. The EU Myan Ku Fund cash transfer programme has been extended until 30 November 2020. Cash transfers will continue to be provided to garment, textile and footwear industry workers who have lost their jobs. Unemployed pregnant workers, migrant workers and workers who are using their unemployment period to enroll in educational and skills training programmes can from now on benefit from this support.
Myanmar has earned USD $ 220 million from the broken rice export to 58 countries in over nine months
Myanmar has earned over US$220 million from export of over 830,000 tons of broken rice to 58 countries over the past nine months this fiscal year with the largest amount going to Belgium, according to the Myanmar Rice Federation. From October 1 to July 17 in the current 2019-2020 fiscal year, 839,956.677 tons of broken rice worth US$224.818 million were exported to 58 countries. Of the total amount, over 220,000 tons worth over US$56 million went to Belgium, over 154,000 tons worth over US$40 million to Senegal, over 143,000 tons worth over US$41 million to China, over 100,000 tons worth over US$30 million to Indonesia and over 30,000 tons worth over US$7 million to the Netherlands.
Myanmar exports of agricultural products exceeded USD $ 3.3 billion in ten months of current fiscal year
Myanmar exports of agricultural products between 1 October and 31 July in the current financial year 2019-2020 exceeded US$3.3 billion from $2.8 billion in the corresponding period of the 2018-2019FY, according to the trade figures released by the Ministry of Commerce. During the past ten months, the agro-export figures reflect an increase of $500.5 million against a-year ago period. In the exports sector, the agriculture industry performed the best along, accounting for 22 per cent of overall exports. The chief items of export in the agricultural sector are rice and broken rice, pulses and beans and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro products are also shipped to other countries. Myanmar agro-products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka.
The value of stock trading on the Yangon Stock Exchange (YSX) decreased over K 300 million in July of current fiscal year
The value of shares traded on the Yangon Stock Exchange (YSX) in July sharply plunged to K1 billion, showing a decrease of over K300 million compared with June trading value, according to YSX monthly report. Also, the trading volume fell to 125,137 shares last month. In January, 2020, 196,836 shares worth K1.25 billion were traded on the exchange while 188,919 shares, with estimated value of K1.48 billion were traded on the exchange in February and 228,913 shares valued K1.42 billion were traded in March respectively. It touched the lowest of K902 million with 173,808 shares in April. It rose to K1.2 billion with 200,416 shares being traded in May. The share volumes traded on the exchange surged to 221,682 in June, with estimated value of K1.3 billion, the exchange’s monthly report showed.
Chinese companies won the Myanmar’s billion dollar solar projects tender
The Ministry of Electricity and Energy will announce in the coming weeks the winners of a tender for 30 solar projects that received more than 150 bids, many from Chinese companies. The Ministry of Electricity and Energy will soon announce the winners of its billion-dollar solar tender, officials say, after receiving more than 150 bids, the majority from Chinese companies. The ministry announced a tender for ground-mounted, on-grid solar plants at 30 sites totalling 1,060 megawatts in May. An unofficial list of bids seen by Frontier shows 155 were submitted for the 30 sites on offer, with Tanyaung in Magway Region receiving 13 bids and Thapyaywa in Mandalay Region receiving 12.
The sesame price in Mandalay market rise due to the strong demand from China
The prices of black and white sesame seeds are significantly rising in Mandalay market on the back of strong demand from China, Mandalay traders said. This year, high sesame producing regions of Myanmar (Magway, Mandalay and Sagaing regions) experienced low yield due to drought impacts. During the meantime, China high demand hiked the prices, according to Soe Win Myint depot in Mandalay. “Myanmar increasingly sends sesame seeds to China market. The price fluctuates a bit. The gradual increase in sesame prices since last week of July has been attributed to high demand by China when the drought reduced crop yield in the country. The various varieties of sesame are priced good, especially black and white sesame varieties,” said owner of Soe Win Myint Depot. The prevailing price of sesame jumped to K205,000 per three-basket bag from K150,000. Similarly, the white sesame seeds have also priced a high of K103,000-138,000 depending on quality. As the sesame stockpile is thin, there is no way of the price drop in the coming weeks, he noted.
Myanmar Investment Commission (MIC) approved USD $ 230.60 million worth Industrial Park project in Hlegu which will create over 2,300 job opportunities
Myanmar Investment Commission has approved a $230.60 million worth Hlegu Industrial Park project, to be invested by Singapore based Sembcorp CSSD Myanmar Co., Ltd, as well as $180 million worth AEON Large Scale Shopping Mall, which will create over 2,300 jobs. In addition to that, the investment body also approved seven new investments in industry, construction, hotels and tourism and service sectors, and seven investment extensions from the existing investments. The combined investment amounts topped $462.693 million and K73.2065 billion creating 3,662 jobs.
The domestic investments reached USD $ 348.29 million as of the end of July in the 2019 – 2020 fiscal year
Domestic investments by Myanmar citizens, including an expansion of capital by existing enterprises, have reached K1,543 billion and US$348.29 million as of July-end of the 2019-2020 financial year since October, according to a press statement issued by the Myanmar Investment Commission (MIC). Between 1 October and 31 July in the current fiscal, Myanmar Investment Commission (MIC) and the respective region and state investment committees gave green lights to 113 local enterprises to invest in various sectors, with estimated capitals of over K1,233 billion and $244 million. Domestic investments have flowed into the real estate, manufacturing, hotels and tourism, construction, industrial estate, energy, mining, livestock and fisheries, agriculture, and other services sectors, according to the Directorate of Investment and Company Administration (DICA).