Weekly Business News from Myanmar

Myanmar’s price of fishery exports to Thailand plunged by 50 percent
Myanmar fishery products’ export price to leading buyer Thailand slumped by 50 per cent, said U Win Kyaing, general secretary of Myanmar Fisheries Federation (MFF). Myanmar mainly ships mackerel fish to Thailand through Kawthoung-Ranong border. It fetched 100-120 baht per kilo last year, and the price sharply fell to 50-55 baht per kilo. “Thailand did not stop trading, yet the offering price drastically dropped. During a bear market, the income generated by fishery products also decreased. Surprisingly, the market experienced a 50 per cent drop”, U Win Kyaing elaborated. At present, the country is primarily conducting border trade with Thailand’s neighbouring country through those border posts; Kawthoung-Ranong, Mawtaung in Myeik, Hteekhee in Dawei and Myawady. Thailand has shut down the border with Hteekhee and Mawtaung. The central trading post (Kawthoung-Ranong) is still open for trading. However, to contain the spread of COVID-19, Myanmar traders cannot enter Thailand’s side, and the trading occurred only at the pier.
The import of CMP raw materials plunged to USD $ 476 million over the past three months of current 2020 – 2021 fiscal year
Imports of raw materials by CMP (cut-make-pack) businesses has touched a low of US$476.3 million as of 1 January in the current financial year 2020-2021 since October 2020, which fell from $581.34 million registered in the previous FY2019-2020, according to the Ministry of Commerce. The figures reflected a decrease of $105 million, the Commerce Ministry’s data indicated. In October of FY2020-2021, the country exported $203.95 million worth garments to foreign countries. The figure plunged from $384 million registered in October of the 2019-2020FY. At present, over 100 CMP garment factories temporarily shut down on the reason for the lack of raw materials and slump in demand due to the coronavirus negative impacts, leaving thousands of workers unemployed. Sixty-four factories have been permanently closed down during the pandemic, compensating about 25,000 workers. The data does not include those factories that have not resolved worker payments, the Ministry of Labour, Immigration, and Population stated.
The trade flow of Sino – Myanmar boosted as Manwain border post opened 24 hours for border trade
The flow of trade between China and Myanmar has improved significantly after opening Manwain border checkpoint for 24 hours, which is essential to the border trade, according to Muse-Namhkam Merchant Association. Border authorities from both sides have agreed on opening the Muse-Manwain trading post for 24 hours on a 10-day trial basis starting from 5 to 14 January to speed up the trade flow between the two countries delayed during the pandemic period. “Before opening the Manwain crossing for 24 hours, more than 200 trucks with cargo entered China daily. After opening, over 400 trucks are crossing between China and Myanmar at Manwain checkpoint daily. Now, the flow of trade is faster than earlier. The trucks that have been waiting for many days to enter China at Muse 105th Mile are also entering China these days,” Muse-Namhkam Merchant Association Chairperson U Sai Nom said.
The first Myanmar’s community-based tourism (CBT) island opened at Don Nyaung Hmaing village in Kyunsu Township, Tanintharyi Region
The first community based tourism (CBT) situated on an island was opened at Don Nyaung Hmaing village in Kyunsu Township on January 10. It was attended by Taninthayi Region chief minister Myint Maung and officials. At the ceremony, Taninthayi Region chief minister Myint Maung delivered an opening address.
South Korea – based POSCO Group is now in talks to make USD $ 900 million worth two new investment projects in Myanmar
South Korea-based POSCO Group is in talks to make two investments, which total around $900 million, in Myanmar, according to Myanmar Embassy in Seoul. U Thant Sin, Myanmar Ambassador to the Korea Republic, on January 11 met Mr. Kyoung-Ho “Michael” Park, General Manager of Energy & Infrastructure Group (Power & Infrastructure Business Division) under POSCO International, who is assigned to work in Myanmar and will come to Myanmar soon. In the meeting, they discussed POSCO International’s two new investment projects: $500 million worth LNG Power Plant project and $400 million worth LNG Receiving Terminal project.
Myanmar trade deficit reached over USD $ 230 million over the past three months in the current 2020 – 2021 fiscal year
There has been a trade deficit of over US$230 million over the past three months in the current fiscal year exceeding over US$14 million compared to the same period of the previous year, according to the Ministry of Commerce. From October 1 to January 1 in the 2020-2021 financial year, Myanmar exported goods worth US$3.685 billion falling over US$1.2 billion compared to last year and imported goods worth over US$3.920 billion falling over US$1 billion.
The individual trade through land border exceeded over K8.09 billion in the first quarter of the current 2020 – 2021 fiscal year
According to data released by the Ministry of Commerce, trade conducted by Individual Trading Card (ITC) holders reached over K8.09 billion through the land border in the first quarter of the current financial year 2020-2021. The Trade Department issued 17 cards in the October-December period this FY. Imports exceeded K6.46 billion, and exports were valued at just K1.6 billion. The Myawady border recorded the highest trade value at K5.3 billion, according to the Commerce Ministry. Nevertheless, the figure only reflected imports as individual trading cardholders did not export goods through the Myawady crossing.
The exporters urged the need of COVID – free certificates to ship fisheries products to China via land borders trade
The COVID-19 free certificate, essential for fishery exports to China, must be issued at the soonest as it can cause disturbance on trading, said general secretary U Win Kyaing of Myanmar Fisheries Federation (MFF). China authorities have given the go-ahead for fishery exports only with the presence of COVID-19 free certificate on products since last October. Consequently, fishery exports, including frozen fish, prawn, eel and crabs, cannot be exported to China via the land border. “The Ministry of Health and Sports of Myanmar take all responsibility regarding COVID-19 and, there is no other institution which can guarantee the COVID-free status. Therefore, we need to tackle this process soon since failure to do so will directly harm the trade. The government needs to formulate a better policy for that as soon as possible, following the international standard,” U Win Kyaing shared his opinion. The Federation stated that the exporters do not know where to seek COVID-free certificate on fishery products.
Myanmar government will launch Myanmar Economic Relief and Reform Plan (MERRP) soon
The government of Myanmar will announce the Economic Relief and Reform Plan, Daw Aung San Suu Kyi, the State Counsellor of Myanmar, said in her address to the National Tourism Development Central Committee’s meeting held on January 8. “We will issue a Myanmar Economic Relief and Reform Plan, which includes plans to remedy the impact of the COVID-19. It is also part of the sustainable development plan,” she said. Moreover, the Ministry of Hotel and Tourism, in collaboration with local organizations, has developed a roadmap for reviving the tourism industry in line with the recommendation of the World Tourism Organization and the World Travel & Tourism Council. The roadmap, which includes short-term, mid-term, and long-term plans, have to be implemented linking with the Myanmar Tourism Relief Plan, Daw Aung San Suu Kyi said.
Myanmar’s manufacturing sector attracted thirteen foreign enterprises in the first quarter of the current 2020 – 2021 fiscal year
Majority of foreign enterprises eye the manufacturing sector for investments in the first quarter of the current financial year 2020-2021, pulling in US$158 million from 13 projects, the Directorate of Investment and Company Administration (DICA) stated. Myanmar has attracted foreign direct investments of more than US$348.8 million in Oct-Dec of current FY, including the expansion of capital by existing enterprises and acquisitions in the Special Economic Zones, DICA’s statistics indicated. Out of 23 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and 31 December of current FY, 13 enterprises pumped FDI into the manufacturing sector. Livestock and Fisheries sector attracted three projects while agriculture, power and other services sector pulled two projects each and one foreign enterprise entered the hotels and tourism sector. At present, labour-intensive enterprises face financial hardship, disputes between the employers and employees and the closure of factories. However, those cases in the industry did not hinder new investments.