Weekly Business News from Myanmar

Myanmar cannot meet China’s daily rice demands due to the COVID – 19 restrictions and transport difficulties
China needs 80,000 bags of rice daily, but over 30,000 goes there due to restrictions China needs 80,000 bags of rice a day, but Myanmar can export just over 30,000 bags through Muse border gate due to the Covid-19 restrictions and transport difficulties, according to the Ministry of Commerce. Over 30,000 bags of rice go to China daily via Muse (105th Mile) Trade Zone border China, according to Muse Rice Wholesale Center.
The raw sesame, peanut import proposal caused price shakeup in the domestic market
The news of a company’s import proposal for raw sesame and peanut makes changes in pricing in the local market, said U Htay Chun, Vice Chairman of Mandalay Depot. “The Ministry of Commerce reported that a certain company had sought import permit for raw sesame and peanut to be produced on a CMP basis and re-exported to foreign markets. The news shook up the pricing, with black sesame dropping to K180,000-150,000 from over K200,000 per three-basket bag. The market will be competitive as the imported sesame is priced cheaper. However, it will undoubtedly harm the interest of the growers. Consequently, the domestic sesame will be offered a low price,” he elaborated. The Ministry of Commerce asked the opinions of Myanmar Pulses, Beans and Sesame Seeds Merchants Association regarding the importation proposal of 10,500 tonnes of raw sesame and 32,000 tonnes of peanuts under zero tariff. As it could harm the interest of the local growers, the association has forwarded this news to the respective depots where sesame and peanut are primarily traded and has asked for their opinions.
The value of China – Myanmar border trade through Muse border dives by UDS $ 353 million amid COVID – 19 resurgence
The value of Myanmar-China border trade through Muse land border plunged to US$264.46 million over the first months of the current financial year 2020-2021 owing to the impacts caused by the COVID-19 resurgence. The figures reflect a decrease of $353.5 million compared to the corresponding period of the previous budget year, according to the Ministry of Commerce. Exports through Muse border were worth $126.136 million, while imports were valued at $138.32 million between 1 October and 6 November 2020. During a-year ago period, Muse border post witnessed trade worth $617.976 million. Muse border checkpoint is an essential one in Myanmar and handles an enormous volume of trade. But at times, it has experienced a sharp drop in business on account of China clamping down on illegal goods, resulting in a halt in trading of agricultural products. Moreover, the COVID-19 impacts slow the trade this year.
A virtual press conference on informing the public about the challenge grant competitions under 5 goals COVID - 19 Economic Relief Plan (CERP)
Ministry of Commerce held a virtual press conference to inform the public about the Challenge Grant competitions under 5 goals of COVID-19 Economic Relief Plan (CERP) and the opportunity to participate yesterday morning in Nay Pyi Taw. Deputy Minister for Commerce U Aung Htoo in his capacity as the Chairman of Digital Trade and E-Commerce Development Sub-Committee and Resident Representative for UNDP Myanmar Mr Titon Mitra delivered opening remarks. The Deputy Minister said the Ministry of Commerce is working with government agencies, Chamber of Commerce, business associations and development partners to build an e-commerce ecosystem and to implement the digital transformation goals. He added the current global pandemic is threatening many traditional businesses and we need to accelerate digital innovation with a view to digital transformation and to promote digital transformation through innovation.
Asian Development Bank (ADB) has provided USD $ 484 million loan for the new Greater Mekong Sub-region expressway
The Asian Development Bank (ADB) has approved US$483.8 million loans to construct a 64-kilometre long new expressway connecting Kyaikto township in Mon state and Bago region. It is aimed at supporting the development along the Greater Mekong Sub-region (GMS) east-west economic corridor. “The Second GMS Highway Upgrading Project will help the government build the four-lane, climate-resilient expressway and help ensure more efficient, safer movement of goods and people along the GMS economic corridor,” said Shihiru Date, the ADB Senior Transport specialist.
Union Minister U Thaung Tun participates in the Virtual Preparatory Regional Comprehensive Economic Partnership Ministerial Meeting (Prep-RCEP MM)
Union Minister for Investment and Foreign Economic Relations U Thaung Tun yesterday attended a Preparatory Regional Comprehensive Economic Partnership (RCEP) Ministerial Meeting in advance of the 4th RCEP Summit via videoconference. The meeting was chaired by Mr Tran Tuan Anh,, Minister for Ministry of Industry and Trade of Viet Nam. During the meeting, Trade Negotiating Committee (TNC) Chair, Mr Iman Pambagyo, Director-General of International Trade Negotiations, Indonesia, presented the RCEP TNC Chair’s report to the Ministers. The Ministers congratulated the TNC and all working groups for their considerable efforts to bring 8-years of RCEP negotiations to a successful conclusion. The Ministers, then, considered and endorsed the TNC Chair’s report. Ministers agreed to organize an interim RCEP Joint Committee that will be primarily responsible for preparing for the RCEP Agreement’s entry into force. Ministers reaffirmed their readiness to sign the RCEP Agreement at the upcoming 4th RCEP Summit on 15 November 2020 and agreed upon the text of both a Joint Leaders’ Statement and a Ministers’ Declaration on India’s Participation in the RCEP which will be adopted as the outcome documents at the 4th RCEP Summit.
Myanmar’s rice prices in the export market slightly decreased in October comparing with the previous months
The prices of rice in the export market slightly decreased in October owing to the coronavirus impacts, as per data of Myanmar Rice Federation (MRF). In October, the export prices of white rice (low quality), broken rice and parboiled rice slipped compared to September’s rate. The prices moved in the range of US$330-415 per tonne of white rice depending on quality, $220-310 per tonne of broken rice and $440-485 per tonne of parboiled rice, indicating a slight decrease compared with the previous months. Consequently, the price of low-quality rice, which is primarily exported to foreign countries, also dropped by K1,000-3,000 against last month’s rate in the domestic market. Following the coronavirus resurgence in Myanmar, high-quality rice (Shwebo Pawsan variety) was highly demanded in the domestic market. The domestic retail market in October saw a significant rise to K57,000 per 108-pound bag from K50,000 registered in September.
The price of onion dropped by the half of 2020 – 2021 financial year comparing to the same period of previous year
The price of onion has dropped by half this year compared to the same period of last year, according to the onion commodity depot from Yetamar Road. On 6 November 2020, the price of Seikphyu species onion ranged from K800 to 950-1000 per viss in Yangon wholesale market depending upon the size while some onion commodity depots are selling the onion for K800-925-950 per viss, according to the onion depot. In the same period last year, the price of onion was K1,300-2,000-2,200-2,300 per viss in the onion wholesale market. Therefore, this year onion price has declined by half compared to that of last year in Yangon market. Although Bangladesh is highly in need of onion for its domestic consumption, the country is still closing its border areas for fear of the pandemic. Myanmar onions are sent to the border areas via a land route, but they could not reach Bangladesh. The onions are not usually sent via sea routes because the onions are damaged by long shipping days.
Parlo Bhd, Malaysian firm launched a biometric digital ID platform for migrant workers from Myanmar
Parlo Bhd has launched a biometric digital ID platform for migrant workers from Myanmar across South East Asia, biometricupdate.com reported quoting an article form the The Edge Markets. This platform will aim to service 360,000 employees by next year, though Parlo hopes for it to expand to the estimated 10 million Myanmar workers worldwide.
Myanmar trade deficit in goods with Singapore estimated at USD $ 10.7 billion in the past four years
Myanmar trade deficit in goods with Singapore was estimated at US$10.72 billion in the past four years, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The value of Myanmar’s bilateral trade with Singapore topped $15.46 billion between the FY2016-2017 and the FY2019-2020 (as of August). The CSO reported that imports surpassed exports in trade with Singapore in the past four years, with exports reaching over $2.37 billion and imports valued at over $13.09 billion. Singapore is Myanmar’s second-largest trading partner in the region, after Thailand.