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Securities and Exchange Commission of Myanmar (SECM) eyes state-owned enterprises to become players in local state market
Securities and Exchange Commission of Myanmar (SECM) is planning to convince state-owned enterprises (SOEs) to become listed companies at the five-year-old Yangon Stock Exchange, which only has six listed companies so far. “For the SOEs, which need government funding, they can remain as state-owned ones. For the rest, which should run without government funding and under private management, and, by becoming listed companies, can benefit shareholders while reducing investment burden on the government, they, we have discussed, should be made listed companies,” U Htay Chun, Commissioner at SECM, told Myanmar Business Today. He exemplified Vietnam’s success story in making its stock market more active and developed by transforming state-owned enterprises into listed companies. Therefore, Myanmar is aiming to develop its inactive stock exchange by transforming SOEs to listed ones. The government, on the other hand, has also been privatizing some of the state-run businesses. -
The value of Myanmar’s iron and steel materials imports over USD $ 890 million in the eight months of the current 2019 – 2020 fiscal year
The value of Myanmar’s iron and steel imports for the construction sector is valued over US$893.8 million in eight months of the current fiscal year 2019-2020, according to the statistics of the Ministry of Commerce. Additionally, $386 million worth iron and steel products are also imported during October-May period. At present, Myanmar’s steel demand is estimated about 2.5 million tonnes per year, and 92 per cent of which are imported. The demand is likely to grow up to 5.4 million tonnes per year in 2030, according to the Myanmar Steel Association (MSA). If Myanmar can fulfil the requirements of local steel consumption and focus on import substitution, the steel industry will strategically contribute to the nation’s interest. -
Myanmar economy may suffer from a sudden economic slowdown and its subsequent lower FDI
Myanmar’s economy is likely to suffer a blow from a sudden economic slowdown and its subsequent lower FDI, according to the report on the impact of the COVID-19 on Myanmar’s export published by Myantrade. Domestic consumption, the main driver of Myanmar economic growth, will weaken as a result of reduced household spending caused by increased unemployment and resulting income contraction. Plummeting manufacturing output in industrialized countries translated to severe supply-side disruptions in the domestic manufacturing sector in Myanmar. As the COVID-19 outbreak is hitting major industrialized countries, including China, the United States, and the European Union (EU) the Member States, direct supply disruptions are hindering manufacturing production. -
Myanmar’s maritime export of rice accounts over 85 percent in the current 2019 – 2020 fiscal year
Myanmar’s maritime trade constituted 85.74 per cent of rice exports and generated an estimated income of US$560.8 million as of 3 July in the current fiscal year, as per data from Myanmar Rice Federation (MRF). Earlier, border trade was relatively high compared to sea trade in terms of rice exports. Since the previous financial year, border trade has dropped, and currently, it accounts for just 14.26 per cent of the total rice exports. Rice exports through the borders have generated an estimated $87.186 million in the current financial year. Myanmar primarily exports rice to China through the borders. However, trade in agricultural products has been halted on account of China clamping down on illegal trade and China’s precautionary measures to contain the spread of coronavirus. -
The new report on impact of COVID – 19 on Myanmar has revealed that Myanmar companies see drops in demand from international customers
Nearly 76% of export businesses in Myanmar have been moderately to strongly affected by the coronavirus pandemic and more than 50% of Myanmar’s companies faced reduced demand from global buyers, a new report on the impact of COVID-19 on Myanmar’s export sectors has revealed. The impact assessment, carried out by Myanmar’s trade promotion organization MyanTrade with technical assistance by the International Trade Center (ITC), presents an overview of the current challenges faced by exporters, an analysis of the pandemic’s impact on each of priority export sectors up to June 2020, and industry-specific recommendations for recovery. ‘This pragmatic report, emerging from Myanmar’s National Export Strategy design process, highlights that recovery will take some time and that key reforms will need to be engaged; it also shows that the pandemic is creating new opportunities for Myanmar economy to become stronger and more resilient in a fast-changing and evolving world,’ Daw Naw Mutakapaw, Director General of MyanTrade, said. -
Cut-Make-Pack (CMP) garment exports valued USD$ 2.73 billion in the period between 1 October and end of May in the current 2019 – 2020 fiscal year
Exports of garments manufactured under the cut-make-pack (CMP) system were valued US$2.73 billion in the period between 1 October and May-end in the current fiscal year 2019-2020, according to data from the Ministry of Commerce. Myanmar’s manufacturing sector is largely concentrated in CMP garments and textiles, which contribute to the country’s GDP to some extent. 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. The majority of Myanmar’s garment factories operate under the CMP system, and those engaged in this industry are striving to transform CMP into the free-on-board (FoB) system, according to the Myanmar Garment Manufacturers Association. -
Myanmar border trade with foreign countries reached over USD $ 8.6 billion as of July 10 in the current 2019 – 2020 fiscal year
Myanmar’s trade with foreign countries through border gates reached over 8.6 billion U.S. dollars as of July 10 in present fiscal year (FY) 2019-2020 which started in October, according to figures released by the Commerce Ministry, Xinhua reported. During the period, the country's export via border gates earned over 5.8 billion U.S. dollars while its import shared over 2.7 billion U.S. dollars. -
Some local and foreign investors are eyeing to invest in industrial estate development sector
Some local and foreign investors are interested in industrial estate development sector, said Director-General U Thant Sin Lwin of the Directorate of Investment and Company Administration. At present, domestic, foreign enterprises and joint ventures are discussing to invest in industrial estate development sector. “We are preparing to have readiness for investments in the industrial zone development sector. We had discussions regarding this, but any proposal is not received yet,” he said. In the current fiscal year 2019-2020, zero investment is found in the industrial estate development sector. -
The water treatment plant to be implemented in Hlegu Township with USD $ 180 million loans from ADB Bank
A water treatment plant will be built in Hlegu Township, Yangon, using $180 million budget borrowed from ADB Bank, according to U Maung Maung Win, Deputy Minister of the Ministry of Planning, Finance, and Industry. “This project is for water resources and will be implemented in five years starting from December this year,” the deputy minister said. ADB Bank will provide the loan with an eight-year grace period with a one percent annual interest rate and 24 years of repayment with a 1.5 percent annual interest rate. -
General Administration of Customs of the People’s Republic of China (GACC) granted rice export licences to 43 Myanmar rice companies
The authorized companies for rice export to China have increased from 11 to 43 this year, after inspecting 43 Myanmar rice companies and 79 rice mills in line with SPS Protocol (Sanitary and Phytosanitary Protocol). The General Administration of Customs of the People’s Republic of China (GACC) granted licences to 43 Myanmar companies on 10 July 2020 to export the rice to China through a legitimate trade channel. In order to have legal rice export channel to China, the Ministry of Agriculture, Livestock and Irrigation of Myanmar (MoALI) and the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ) signed an agreement on 24 September 2014 regarding SPS protocol. Only 11 companies were given green light for rice export then.
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