Weekly Business News from Myanmar

Myanmar Rice Federation (MRF) urged traders to sign contract and strictly comply with trade regulations
Myanmar Rice Federation (MRF) has asked the traders to enter into a firm contract and strictly adhere to trade regulations. On 27 November, the officials of MRF and Rice Depot (Muse) discussed on rice export through Muse land border. At the coordination meeting, they highlighted current border trade situations. These matters will come forward to the governments of the two countries, selling to the authorized companies with rice import quota licence and needs for the firm contract. Legal trade channel through the border to China is crucial in Myanmar’s rice industry. Therefore, the federation and rice depot (Muse) also agreed to extend their coordination. At present, Muse depot sees regular trading, MRF stated.
Yoma Land plans to develop its first suburban office property and second City loft project in Yangon
Yoma Land, the real estate arm of Yoma Strategic Holdings (“Yoma Strategic”) plans to develop its first suburban commercial property at StarCity and a second real estate development project under the “City Loft” brand in another part of Yangon. These two new projects are in line with Yoma Strategic’s mission to deliver a sustainable urban lifestyle and vibrant master planned communities.
Myanmar’s pineapple exporters called for legitimate trade channel for export which still suspended this year due to the COVID – 19
Myanmar’s pineapple exports are blockaded due to the lack of the Phytosanitary Certificate (PC) issued by Myanmar’s Agriculture Department which is required for export to China, according to northern Shan State Pineapple Producers and Exporters Association. “Myanmar’s pineapple has penetrated to China market. Yet, the trade halted as there is no G-to-G agreement between Myanmar and China. Myanmar has sent samples of avocado and its products to 40 countries. Thailand’s buyers also eyed Myanmar’s pineapples. However, a memorandum of understanding (MoU) matters in international trade to ease the trade barrier. MyanTrade under the Ministry of Commerce officially linked with buyers. The Agriculture Department is responsible for issuing the PC. It is two years that the association asked the department to issue the PC. We have not received any reply to it yet. I feel pity for it that we cannot export the pineapples to external markets even if we have foreign buyers,” said U San Lin, Managing Director of Shwe Nanat Company, who is also treasurer of the association.
The agricultural exports increased by USD $ 63 million over the past month in the current 2020 – 2021 financial year
The agricultural exports showed a remarkable increase of $63 million over the past month in the current financial year despite a drastic drop in overall export values amid the COVID-19 resurgence. Myanmar’s exports of agricultural products soared to US$435 million between 1 October and 13 November in the financial year 2020-2021 from $371.75 million in the corresponding period of the 2019-2020FY, according to the trade figures released by the Ministry of Commerce. Myanmar’s agricultural exports rose regardless of the impact of the coronavirus on foreign demand. In the exports sector, the agriculture industry performed the best, accounting for 22 per cent of overall exports. The chief items of export in the agricultural industry 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. Sometimes, the export market remains uncertain due to unsteady global demand.
The price of watermelon exported to China reached the highest level in the seven years
The price of watermelon exported to China reached the highest level in seven years, said Chairperson U Naing Win of the Myanmar Watermelon and Muskmelon Producers and Exporters Association. The watermelon fetches a high of 6,200 Yuan per tonne at present. It hit the most elevated of 7,000 Yuan per tonne back in 2013, he continued. “The melon price is extremely high. It is the highest level in six-seven years. In 2013, the melon reached the all-time high of 7,000 Yuan per tonne for 14 to 15 days. For now, the price remained at 6,200 Yuan per tonne for a month,” he said. Myanmar is daily exporting about 60 trucks of watermelon to China. And, the demand is surpassing the supply, for now, he added.
Myanmar expected to sell 50% of gas to Thailand and 20% to China this 2020 – 2021 financial year
Myanmar has expected to sell 50 percent of natural gas produced from offshore projects to Thailand and 20 percent to China while the remaining 30 percent is set for domestic sale, according to the 2020-2021 State budget data. In the domestic gas consumption, 85.9 percent will be electricity generation, 5.3 percent for CNG production, four percent for fertilizer production and 4.8 percent for other sectors.
Myanmar will boost bilateral collaboration with India in trade and other sectors for mutual interest
U Than Myint, Union Minister of the Ministry of Commerce, said during the Seventh Joint Committee Meeting, that Myanmar will boost collaboration with India in trade and other sectors for mutual interest. He expressed his confidence at the meeting saying that it will boost bilateral collaboration in trade, investment, agriculture, textile, transportation, and banking and belief that the economic pressures caused by the COVID-19 pandemic can be overcome through close cooperation. At the meeting, Mr. Piyush Goyal, Minister of the Ministry of Commerce and Industry, India, said that India will continue collaboration with Myanmar for improving trades through border gates and sea routes and India Trade Promotion Organization (ITPO) will closely work with MYANTRADE.
Myanmar imports over USD $ 1 billion worth iron and steel materials in the last 2019 – 2020 financial year
The value of Myanmar’s iron and steel imports for the construction sector is valued over US$1.19 billion in the past financial year 2019-2020 ended in September, according to the statistics of the Ministry of Commerce. Additionally, $586.25 million worth iron and steel products are also imported during the October-September 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 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. Steel consumption includes in calculating economy growth index, said Chairman U Sit Taing Aung of the Myanmar Steel Association (MSA).
Myanmar is implementing 14 projects with Mekong-Lancang Cooperation special fund in the current 2020 – 2021 fiscal year
Myanmar has received four projects in the third batch to be implemented with Mekong-Lancang Cooperation special fund in the current 2020-2021 fiscal year, bringing to the total number of ongoing projects to 14, according to the Ministry of Agriculture, Livestock and Irrigation on 23 November. Myanmar received five projects in the first batch in 2018-2019 FY, five projects in second batch in 2019-2020 FY and four projects in the third batch in the current financial year. To prevent delays in implementing those projects due to the Covid-19 crisis, a video conference took place on 23 November to seek ways to complete the project work as scheduled and decide action plans.
Myanmar’s external trade falls by USD $ 1.4 billion as of 13 November in the current 2020 – 2021 financial year
Myanmar’s external trade between 1 October and 13 November in the current financial year 2020-2021 touched a low of US$3.08 billion, a sharp drop of $1.4 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. During the same period in the previous FY, trade stood at $4.486 billion, according to data released by the ministry. As of 13 November 2020, Myanmar’s export was worth $1.3 billion, which plunged from $2.34 billion registered a year-ago period. Meanwhile, the country’s import was valued $1.76 billion, showing a decrease of $382.3 million compared with the last FY. The decrease in Myanmar’s foreign trade was attributed to the drop in exports and imports in the current FY amid the COVID-19 crisis. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.