Weekly Business News from Myanmar

Myanmar allowed to entry of Thai cargo trucks at Myawaddy trade zone to normalize commodity flow
Amid Covid-19 restrictions between bilateral BCF zones, Myanmar has allowed cargo trucks from Thailand to come up to Myawady trade zone as of November 23 under the instruction of the Kayin State government to facilitate commodity flow. “Our trade activities are a main thing. Currently, bilateral trade activities are being carried out between the BCF zones. Exchange of goods at one place causes trade delays. If Covid cases emerge, the whole BCF zone has to be locked down stopping trade completely. So, the statement government has allowed Thai cargo trucks to come to Myawady trade zone starting 6 am on November 23,” Myawady District Commissioner Tay Zar Aung.
Union Minister of Hotels and Tourism urged to transform its Ministry as servicing Ministry
U Ohn Maung, Union Minister of the Ministry of Hotels and Tourism, urged the civil servants serving in his ministry to transform it into a servicing ministry. He made that statement during the online meeting with the staff in the ministry held in the third week of November. The ministry with assistance from the experts has now developed a service manual and will deliver it to each of the employees under the Ministry of Hotels and Tourism. The minister urged the employees to study and learn the manual so that they can fully provide service.
Myanmar will start export seedless watermelon to Dubai market in the early of December 2020
Myanmar will start exporting seedless watermelon to Dubai market in early December, said U Naing Win, chair of Myanmar Watermelon and Muskmelon Producers and Exporters Association. For the first time, 25 tonnes of Myanmar’s seedless watermelon will be shipped on 6 December, he continued. “Traders from Dubai, UAE ordered 25 tonnes of seedless watermelon. The melons are scheduled to ship on 6 December. It will take about 17 days to reach Dubai. If they like our melon, they will purchase the melons the whole year,” he said. “Myanmar has a plan to expand its market to Hong Kong SAR, UAE and Qatar”, the association stated.
The value of Myanmar pharmaceutical imports soared to USD $ 678.24 million in the past 2019 – 2020 financial year
The import value of Myanmar pharmaceutical products soared to US$678.24 million in the previous financial year 2019-2020, the Central Statistical Organization’s trade statistics indicated, according to state media. The figure rose from $525.9 million registered in the corresponding period (October-Sep) of last FY, the statistics showed.
Myanmar’s natural gas exports topped USD $ 3.5 million in the past 2019 – 2020 financial year
Myanmar’s exports of natural gas in the past financial year 2019-2020 amounted to US$3.5 billion, the Commerce Ministry’s data showed. The figures plunged from $3.88 billion registered in the FY2018-2019, as per Commerce Ministry data. Natural gas is included in the list of major export items of Myanmar. Over 10 per cent of the country’s total export earnings come from the sale of natural gas. There are 53 onshore blocks and 51 offshore blocks, totalling 104 blocks. A total of 25 onshore blocks and 31 offshore blocks are operating under foreign investment. Natural gas extraction is being made at the Yadana, Yedagun, Shwe, and Zawtika offshore blocks as well as onshore drilling blocks. Yearly extraction is elevated to cubic feet in 670.36 billion from 600 billion this year, according to the fourth-year performance statement of the Ministry of Electricity and Energy.
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.