Weekly Business News from Myanmar

President pledged to support in the promoting businesses to become more competitive, responsible business environment
President U Win Myint has promised that he will support the businesses to become highly competitive, responsible, and just companies that follow international norms. He made the promise during his speech at the ceremony of presenting honorable awards to the biggest taxpayers in the country for the 2018-2019 fiscal year. He also praised the biggest taxpayers for being responsible citizens and businesses, encouraged them to keep the good practice and urged other businesses to become responsible ones by paying due taxes like these companies. The biggest taxpayers for special item tax include Dagon Beverage Company, Royal Class Beverage, SMM Shwe Myanmar Beverage, Yaung Ni Distillery, Golden Oriental Leaf Co. ltd, Victory Myanmar Group, Baho Manufacturing Company, Asia Beverages Company, Lin Lat Win Gems and Jewelry Company and Yadanar Kyel Co., Ltd.
Myanmar’s mineral exports reached USD $ 1.553 billion in the first ten months of current fiscal year
Myanmar’s mineral exports have shown a marked increase this financial year, touching US$1.553 billion between 1 October and 31 July, an increase of $265 million compared with the year-ago period, according to the data from the Ministry of Commerce. In the corresponding period of the previous financial year, mineral exports were pegged at just $1.28 billion. Both private and public sector mineral exports have recorded an increase in the current budget year, with private sector exports valued at $1.069 billion and public sector exports estimated at $484.19 million. So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, according to the Ministry of Natural Resources and Environmental Conservation.
Myanmar exports about 100,000 tonnes of black beans to India by August – end of deadline of 2020
Myanmar can export about 100,000 tonnes of black beans out of 400,000 tonnes to India by August-end deadline, said Chair U Min Ko Oo of Myanmar Pulses, Beans and Sesame Seeds Merchants Association. India rapidly changed the import period of black bean to three months by August-end 2020 from the earlier set deadline of March 2021, as per their official notice. Myanmar can ship about 100,000 tonnes as India suddenly narrowed the import deadline for the entire quota of 400,000 tonnes to a shorter period. “It is late that India’s companies have been granted import licence. If the deadline is April-end, the country can ship only 20-25 per cent of quota (approximately 80,000-100,000 tonnes),” he noted.
Magway sesame growers faced the hardship due to the drought low price and damaged by the lack of rain
With the sesame damaged by lack of rain, the local sesame growers are less interested in growing of sesame as they know they cannot expect the good price, according to the sesame growers in Magway region. “We are not interested in the sesame market price. And we don’t have sesame to supply as well. The plants could not be grown again because time is over. We could not supply the sesame this year from our plantations,” said U Kyi Lin, a sesame grower from Hlepwegyi village. “The sesame price dropped in March. After that, the price of sesame is rising again after the water festival in April. Some growers destroyed their sesame plantations and came to buy the bean seeds to grow. They don’t even ask the market price of sesame,” said Ko Yarzar Lin, an owner of the Nyein Man commodity in Magway town.
Joint venture between government – backed Committee and Chinese company, China’s Strategic Port project will move step closer to reality
The Myanmar government’s investment agency last week approved the registration of a joint venture between a Chinese company and a government-backed committee to develop China’s strategic deep-sea port project in western Rakhine State. The approval moves the long-delayed backbone project of the China-Myanmar Economic Corridor (CMEC) one step closer to actually getting off the ground. The CMEC forms part of China’s ambitious Belt and Road Initiative (BRI). The Kyaukphyu Special Economic Zone and deep-sea port project is designed to provide China with direct access to the Indian Ocean, allowing its oil imports to bypass the Strait of Malacca and boost development in China’s landlocked Yunnan Province. The entire project covers 4,300 acres (about 1,750 hectares). It also plans to construct an industrial zone with facilities for textile and garment manufacturing, construction materials processing, food processing, pharmaceuticals, electronics, marine supplies and services, and research.
Myanmar Coffee Association expected export market recovery in the coming months of current fiscal year
Myanmar’s coffee beans exports are dropping as against last year, and Myanmar Coffee Association is expecting a recover of market in the coming months, said an official of the association. The impacts of coronavirus hurt coffee industry as the lockdown and physical distancing caused a reduction in consumption. The COVID-19 crisis changed the dynamics of coffee consumption during recent months and roasters, cafe owners and distributors are identifying specific trends in Asian markets that may expedite a recovery to a new normal, according to ASEAN Coffee Federation. “Myanmar primarily produces Arabica coffee. Specialty coffee fetches as much as US$4,500-10,000 per ton. Myanmar’s specialty coffee beans are highly demanded due to their high quality and organic production,” said U Myo Aye, chair of the Myanmar Coffee Association. “Myanmar’s coffee has already earned a good reputation. It has penetrated markets in Asia such as Hong Kong and Singapore, European countries, and the US, and it has a good potential in the global market,” said an official from the Agriculture Department.
Five small scales Octane 92 mini refineries will be built in Magway Region after Regional Government call tenders
Five small scale Octane 92 refineries will be built in Magway Region after the Magway Regional Government has invited tenders for the projects to be implemented on 200 acres of land in Chaukkan Village in Pakkoku Township. These refineries will become the country’s first ones to refine Octane 92 as other refineries in the country can only refine Octane 68. The new refineries will refine oil from small scale wells in the region. The project is worth more than $5 million investments and required the approval from the union government.
European Union (EU) Myan Ku Fund assistance to factory worker reached K 4 billion in four months
Garment workers who have lost their jobs due to the COVID-19 pandemic continue receiving financial assistance through a €5 million K7.9 billion European Union emergency cash fund, “Myan Ku”. Between 1 May and 3 August, halfway through the initiative, “Myan Ku” has distributed emergency cash payments to laid-off and suspended workers, reaching 45,061 payments, equivalent to over K4 billion (or €2.5 million) in total assistance provided so far. “Myan Ku supports us during a time when we really need it so everyone who receives such assistance from the fund will be secure for a while and they will also be happy like me. I also want to get my job back as soon as possible to support my family.” said Ms Shunn Lae Nway, a garment factory quality controller who lost her job in May. The EU Myan Ku Fund cash transfer programme has been extended until 30 November 2020. Cash transfers will continue to be provided to garment, textile and footwear industry workers who have lost their jobs. Unemployed pregnant workers, migrant workers and workers who are using their unemployment period to enroll in educational and skills training programmes can from now on benefit from this support.
Myanmar has earned USD $ 220 million from the broken rice export to 58 countries in over nine months
Myanmar has earned over US$220 million from export of over 830,000 tons of broken rice to 58 countries over the past nine months this fiscal year with the largest amount going to Belgium, according to the Myanmar Rice Federation. From October 1 to July 17 in the current 2019-2020 fiscal year, 839,956.677 tons of broken rice worth US$224.818 million were exported to 58 countries. Of the total amount, over 220,000 tons worth over US$56 million went to Belgium, over 154,000 tons worth over US$40 million to Senegal, over 143,000 tons worth over US$41 million to China, over 100,000 tons worth over US$30 million to Indonesia and over 30,000 tons worth over US$7 million to the Netherlands.
Myanmar exports of agricultural products exceeded USD $ 3.3 billion in ten months of current fiscal year
Myanmar exports of agricultural products between 1 October and 31 July in the current financial year 2019-2020 exceeded US$3.3 billion from $2.8 billion in the corresponding period of the 2018-2019FY, according to the trade figures released by the Ministry of Commerce. During the past ten months, the agro-export figures reflect an increase of $500.5 million against a-year ago period. In the exports sector, the agriculture industry performed the best along, accounting for 22 per cent of overall exports. The chief items of export in the agricultural sector 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.