ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  The value volume of rice export meets target in this year despite export volume via border routes dropped

  Although the volume of rice export via border route dropped, Myanmar met the export target in 2019-2020 financial year, said Vice-Chairperson U Aung Than Oo of Myanmar Rice Federation (MRF). MRF targeted to export 2.4 million tonnes of rice and broken rice this FY. Myanmar has shipped over 2.4 million tonnes of rice and broken rice including 625,214 tonnes via border route and 1.8 million tonnes of rice and broken rice via sea route from 1 October to 21 August this FY. The export of rice met the target this FY thanks to the rising volume of rice export via sea route, according to MRF. The rice export volume dropped via land border route after China had granted export of rice through a legitimate trade channel, he added.
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  Myanmar trade deficit surged to USD $ 1.54 billion as of 21 August in the 2019 – 2020 financial year

  Myanmar trade gap has significantly surged to US$1.54 billion as of 21 August in the current financial year 2019-2020 from over $1 billion registered in the corresponding period of the 2018-2019FY, according to the data provided by the Ministry of Commerce. Between 1 October and 21 August in the current FY, Myanmar’s external trade increased to over $33 billion from $31.2 billion recorded in the year-ago period. While exports were estimated at $15.7 billion, imports were valued at $17.27 billion. Compared to the previous FY, exports showed an increase of $637.69 million, while imports climbed up by $1.165 billion. Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, intermediate goods, CMP raw materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. While export earnings from the CMP (cut, make, and pack) garment businesses are rising, the country’s reliance on natural resources, such as natural gas and jade, is lessening.
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  Japanese government provides emergency loan to use in the response crisis over COVID – 19 pandemic in Myanmar

  With the aim to response crisis over COVID-19 pandemic in Myanmar, bilateral agreement to give emergency loans worth about US$180 million was signed between Myanmar and Japan on September 1st, according to the announcement from Japan Embassy in Myanmar. Japanese ambassador to Myanmar Ichiro Maruyama and Deputy Minister of Finance and Industry Maung Maung Win signed an agreement and exchanged it. The Japanese government was very proud of Myanmar’s efforts into control of COVID-19 virus and then Japan will be helping with economic projects concerning COVID-19 disease and COVID-19 Economic Relief Plan. The loans will be low-interest and the appropriate grace period including suspension period will be 40 years.
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  The value of shares trading on the Yangon Stock Exchange (YSX) decreased in the August of this financial year

  The value of shares traded on the Yangon Stock Exchange (YSX) in August sank to the lowest level of K747 million this year, according to YSX’s monthly report. The trading volume also plunged to an eight-month low of 118,850 shares in August. The stock markets worldwide have reported their largest declines since the 2008 financial crisis. Similarly, the local equities market is also scared by the COVID-19 crash, and a market observer points out. Moreover, Myanmar people like to invest in property, currency and gold market. Most of the local people are accustomed to investing in the gold market rather than the stock market. They will buy them if they have extra money. The cash out when they need, he added. In a bid to contain the spread of COVID-19 and promote the development of Myanmar capital market through the digital platform, the first Online Exhibition and Live Seminar YSX Expo 2020 will go live on 12 and 13 September 2020. Those interested can make registration through https://ysx.expo2020.online/. The expo will include more than ten digital booths of listed companies and securities companies, live panel discussion to cover economic and investment situation, investors’ perspective amid the COVID-19 crisis and situation of foreigners’ participation in Myanmar capital market, interview talk with executives of the listed companies, lucky draw program and free online stock trading account opening, the YSX stated.
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  The number of companies registered on the MyCo exceeded over 9,300 in the past eight months of current financial year

  The number of companies registered on the online registry system, MyCO, reached over 9,300 in the past eight months (Jan-Aug) 2020, according to the Directorate of Investment and Company Administration (DICA). The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, in keeping with the Myanmar Companies Law 2017. Typically, over 1,000 new companies are registered every month. This year, the figures of registered companies stood at 1,415 in January, 1,298 in February and 1,015 in March, only 348 companies in April, 798 in May, 1,314 in June, 1,650 in July and 1,551 in August, as per data of the DICA. At present, 100 per cent of the applicants are using the online registration platform, according to data provided by the DICA.
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  Myanmar exports agricultural products which worth USD $ 3.3 billion in the current financial year

  The agricultural sector is the lifeblood of Myanmar and is the first prioritized business of the country. Agriculture is the backbone of Myanmar’s economy and rice, pulses and beans are the country’s leading agricultural products. In Myanmar, agricultural sector accounts for over 37 per cent of the country’s GDP and employs about 70 per cent of the labour force. The agricultural sector plays an important role in reducing poverty rate in Myanmar. Myanmar’s exported agricultural products worth US$ 3.3 billion to foreign countries between 1 October last year and 31 July in the current financial year, an increase of US$500 million against a year-ago period, according to the figures released by the Ministry of Commerce. Myanmar earned US$2.8 billion from agricultural products export in the first ten months of the financial year 2018-2019. In the country’s export sector, the agriculture industry accounted for almost 22 per cent of overall exports. The main items of export in the agricultural sector are rice and broken rice, beans and pulses and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agricultural products are also transported to other countries around the world. About 60 different types of crops are grown across the country.
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  Myanmar Online Expo Park (Virtual) attracted more traders from foreign countries

  Traders from foreign countries are interested to buy Myanmar food, fruits and vegetables exhibited in the Myanmar Online Expo Park (Virtual), which was held from 24 to 30 August, according to the Myanmar International Trade Centre. The online expo focused on business matching with Japan, China and Singapore. Traders from Japan want to buy Myanmar readymade food including tins of sardine, canned beef, instant noodles and instant vermicelli noodles. Traders from Singapore are interested to buy fruits and vegetables including mangoes, tomatoes, pomelos and chillies. Traders from China are keen to buy beans, sesame, rice, fishery products, dried tea leaves and lotus cotton.
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  Myanmar’s garment sector has been faced the hardship due to the impact of coronavirus pandemic

  The cut-make-pack (CMP) garment sector in Myanmar has been hit hard by the coronavirus impacts amid the global demand slump, said an official of Myanmar Garment Manufacturers Association, state media reported. Supply chain disruptions and cancelling customer orders following the coronavirus outbreak hurt the global textile industry. Similarly, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is bracing for downward trend owing to the cancellation of orders from European countries and suspension of the trade by western countries amid the pandemic.
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  Around 56 factories and workplaces are completely shut down in 7 months amid COVID – 19 crisis

  A total of 173 factories were hit hard by the coronavirus impacts in the past seven months (1 January and 31 July), including the closure of 56 factories and workplaces, temporary closure and layoffs, said Daw Moe Moe Su Kyi, Regional Minister for Immigration and Human Resources. She responded to the queries raised by Daw Aye Aye Mar of Lanmadaw constituency, at the twelfth regular session of the Second Yangon Region Hluttaw held on 31 August. Daw Aye Aye Mar asked whether the factories that were closed during the pandemic are in line with past commitments during its establishment. She also questioned the number of factories shut down, the reason for the closure and further plans. Those 173 factories have over 42,000 workers, and some of them are applying for new jobs posted by the Department of Labour, she continued.
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  Myanmar plans to import over 3 million broiler chicks from Thailand in 4 months to fulfill domestic needs

  To fulfil domestic needs, Myanmar targeted to import 3.79 million broiler chicks from Thailand in September as a monthly temporary project, under which the import has been conducted starting from June, according to Myanmar Livestock Federation (MLF). “Because of the coronavirus outbreak in April and May, the local broiler chicken breeders dropped the production of chicken because of decreasing demand. The COVID-19 outbreak is not worse in the country, and broiler poultry businesses are re-operated again. So, we have market demand, and we are planning to import the broiler chicks from Thailand,” said MLF Vice-Chairman (3) Dr Nay Thurein. The country will import 1.7 million broiler chicks for the third time from Thailand in one and a half months from 15 August to 30 September.