Weekly Business News from Myanmar

Ernst and Young given green light to operate the Swiss Challenge tendering process for Htantabin Industrial Park Project
Ernst and Young has been chosen to operate the Swiss Challenge tendering process for Htantabin Industrial Park project, Yangon Region government stated. The consultant firms were invited to take charge of the tendering process as per notification dated 30 July. Following the announcement inviting RFPs, Ernst and Young Myanmar, Deloitte Touche Myanmar Vigour Advisory Limited, PricewaterhouseCoopers (PWC) Myanmar Co. Ltd, and Roland Berger Co. Ltd submitted their requests for proposal. A consultant selection team was formed to carry out Htantabin Industrial Park Project’s Swiss Challenge. U Ye Min Oo, Regional Minister for Planning and Finance, was appointed as the chairman with ten members as per Yangon Region government’s meeting 36/2020 decision paragraph 103 on 27 August. Consultant selection team held discussions on 21 and 28 October to evaluate the consultant companies for Swiss challenge. Ernst and Young Company was selected for Swiss Challenge on 6 November, Yangon Region government notified.
Myanmar external trade has decreased by USD $ 876 million in October in the current 2020 – 2021 financial year
Myanmar external trade between 1 and 30 October in the current financial year 2020-2021 touched a low of US$2.006 billion, a sharp drop of $876 million 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 $2.882 billion, according to the data released by the ministry. In October 2020, Myanmar’s export was worth $845.38 million, which plunged from $1.45 billion registered a year-ago period. Meanwhile, the country’s import was valued $1.16 billion, showing a decrease of $271.6 million compared with the last FY. The decrease in Myanmar’s foreign trade was attributed to the drop in exports and imports in the first months of the current FY amid the COVID-19 crisis.
Myanmar and Japan have signed loan agreement for constructing road infrastructure and facilitating financing for small and medium size companies
Japan and Myanmar have signed a total of 42.78 billion yen ($414 million) in low-interest loans to allow the Southeast Asian country to build road infrastructure and facilitate financing for small and midsize companies, The Mainichi reported.
The value of CMP garment exports reached USD $ 4.28 billion in the previous 2019 – 2020 financial year
Exports of garments manufactured under the cut-make-pack (CMP) system were valued US$4.28 billion in the period between 1 October and August-end in the previous financial year 2019-2020, according to the data from the Ministry of Commerce. Myanmar manufacturing sector is primarily 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. Following the negative impacts caused by the COVID-19 on the garment industry, some CMP garment factories have shut down on the reason for the lack of raw materials, leaving thousands of workers unemployed.
Myanmar will export over 200,000 tonnes of sugarcane to China via Lwejel border in current 2020 – 2021 financial year
Myanmar will export over 200,000 tonnes of sugarcane to China via Lwejel border camps in 2020-2021 financial year, according to Myanmar Sugar and Sugarcane Product Entrepreneurs Association (MSSPEA). To export over 200,000 tonnes of sugarcane, a local company will buy sugarcane from the local fields near Lwejel border region to ship them to China. Sugarcane will be exported as a raw material when Myanmar could not export sugar to China. “The local company, named 7 Force, will export sugarcane. The company has also grown the sugarcane. The company will also buy the sugarcane from the local growers whose farmlands are far away from sugar mills,” stated the MSSPEA.
The value of Myanmar’s exports to Hong Kong SAR surpassed imports in the 10 months of the last 2019 – 2020 financial year
The value of Myanmar’s bilateral trade with Hong Kong SAR touched US$213.69 million in the 11 months of the last financial year 2019-2020, with exports surpassing imports, according to the data provided by the Ministry of Commerce. Between October and August, Myanmar shipped goods worth $208 million to Hong Kong SAR and imported goods valued at $5.56 million. Myanmar’s significant items of export to Hong Kong SAR include precious stones, agricultural products, fishery products, and garments. The nation mainly imports telecommunications equipment and optical goods. Myanmar-Hong Kong trade has registered $232.395 million in the 2018-2019FY, $238 million in the mini-budget period (April to September 2018), $385.63 million in the 2017-2018FY, 234.46 million in the 2016-2017FY, and $316 million in the 2015-2016FY, the Commerce Ministry’s data showed.
The volume of stock trading at Yangon Stock Exchange (YSX) dropped for ten consecutive months of this year
The volume of shares traded on the Yangon Stock Exchange (YSX) in October has sunk to the lowest level of K673.5 million for ten consecutive months this year, with 85,630 shares, the YSX’s monthly report indicated. In January 2020, 196,836 shares worth K1.25 billion were traded on the exchange while 188,919 shares, with an estimated value of K1.48 billion, were traded on the exchange in February and 228,913 shares valued K1.42 billion were traded in March respectively. It touched the lowest of K902 million with 173,808 shares in April. It rose to K1.2 billion with 200,416 shares being traded in May. The share volumes traded on the exchange surged to 221,682 in June, with estimated value K1.3 billion and then, it fell to K1 billion with 125,137 shares in July. In August, the exchange witnessed a low of stock trading value at K747.5 million, with 118,850 shares traded. The value slightly rose to K838.67 million with 85,237 shares on the business in September, the exchange’s monthly report showed. At present, shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd (TMH) and the Ever Flow River Group Public Co. Ltd (EFR) is being traded on the exchange. In October, the share prices of FMI were closed at K9,900 per unit, MTSH at K3,650, MCB at K8,200, FPB at K22,000, TMH at K2,750 and EFR at K3,550 respectively.
Sino – Myanmar trade has grown since the early of October despite the trade flow is delayed at border gates
Although the flow of the trade at Sino-Myanmar border is delayed, the trade flow has grown since early October, said U Min Thein, the vice-chairman of Muse Rice Wholesale Centre. “The Sino-Myanmar border trade has improved significantly since 8 October. Around 50 trucks carrying 640 rice bags each are entering through the border daily. So, around 32,000 rice bags are entering daily. And more than 30,000 rice bags are sold to China daily. Similarly, the corn has been permitted to enter as well. Around 30 trucks carrying corn bags are entering as well as other trucks carrying a variety of beans, sugar liquid and other goods are also entering every day. About 150 trucks are entering China daily,” he further said. Likewise, about 150 trucks from China carrying construction materials, medicines, food products and other personal goods are entering Myanmar. Although around 450-500 truckloads of cargo were not unusual earlier, now, only around 150 trucks can go through the border, and this has caused delays in trade. There is difficulty in the flow of goods into China because of the uncertainty caused by COVID-19 detecting and replacing the drivers, he added.
The domestic investments reached over Ks 10 trillions within over the past four years of incumbent government
Local investment has reached over Ks10 trillions within over four-year time of this government era and they are mostly in real estate, services and production sectors, according to Myanmar Investment Commission (MIC). A total of 575 investments made by Myanmar citizens had entered in 12 sectors from 2016-17 FY to 2019-20 FY and total investment are over ten trillions kyats. The twelve sectors are housing development, other services, industrial, transportation and telecommunication, hotel and tourism, electricity, industrial zone building, livestock and fishery, construction, mining, farming and oil and natural gas sectors.
The value of Myanmar’s bilateral trade with neighbouring country Thailand in maritime trade and border trade was estimated at US$18.865 billion in the past four financial years, the statistics issued by the Central Statistical Organization under the Minis
The value of Myanmar’s bilateral trade with neighbouring country Thailand in maritime trade and border trade was estimated at US$18.865 billion in the past four financial years, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The ministry reported that exports surpassed imports in trade with Thailand in the past four years, with exports reaching over $10.731 billion and imports valued at over $8.13 billion. Between 2016-2017FY and 2019-2020 (as of August), Thailand has been Myanmar’s largest trade partner among the ASEAN states, followed by Singapore and Malaysia. Thailand accounted for 14.45 pc of total trade in 2016-2017FY with an estimated trade value of US$4.6 billion, 15.54 pc in 2017-2018FY with a trade value of $5.57 billion, 15.55 pc in 2018-2019FY with $5.46 billion and 13.92 pc in 2019-2020FY (Oct-April) with $3.15 billion respectively.