Weekly Business News from Myanmar

A yard, the cattle exporters body will be constructed near Mandalay Region
A yard will be constructed near Mandalay Region for the cattle designated for export to China will be mustered into there, according to the Mandalay Region Cattle Exporters Association (MRCEA). “At present, live cattle export to China through the Muse land border is facing hardships due to housing difficulties and high feedstuff cost,” said Chairperson U Soe Naing of the exporters association. “We are discussing this matter with key participants. Muse border is too small to handle thousands of cattle. If the number of cattle exceeds 5,000, housing difficulties occur; therefore, we need cattle yard. PyinOoLwin has abundant pasture land. It is easy to buy hay and corn there as well,” he added. Mandalay Region Cattle Exporters Association will submit a report to the authority concerned to build cattle yard.
Myanmar regained foreign rice market shares as export rice prices rise in November
Myanmar regained rice market shares from certain countries on account of high quality and the price also increased in November, said U Ye Min Aung, Chairman of Myanmar Rice Federation. The export price of Myanmar’s rice is relatively lower than the rates of Thailand and Viet Nam. Yet, the prices are higher than those market prices of India and Pakistan, MRF’s data showed. In November, the export prices of Myanmar white rice (low quality), broken rice and parboiled rice rose compared to October’s rate. The prices moved in the range of US$400-490 per metric ton. Following the coronavirus resurgence in Myanmar, rice was highly demanded in the domestic market. The domestic retail market in November saw a rise of K500-2,000 per 108-pound bag compared to October’s prices, said traders from Bayintnaung market. The prices of rice last month for Pawsan varieties moved in the ranges of K38,000-57,000 per 108-pound-bag in the domestic market, while low-quality rice fetched K22,000-28,000, MRF data showed. The local people prefer old rice to the newly harvested crop. When the fresh rice enters the market, the price of old rice is remained strong, said a trader from Wahdan commodity depot. Myanmar exported 350,260 tonnes of rice and broken rice to foreign trade partners between 1 October and 27 November in the current financial year 2020-2021, generating an income of over US$300 million, as per MRF’s data.
The infrastructural development projects will make a major transport hub in Bago Division
“The New Hanthawaddy International Airport will be implemented as a national project,” Vice-President U Henry Van Thio told the media. The new airport project will be developed on over 9,600 acres of state-owned landon outskirts of Bago City, about 75 km from commercial city Yangon. The new airport,designed to be built in three phases, includes the construction of an international terminal with capacity for 12 million passengers p/a, a 3,600m runway capable of handling A340 and Boeing 747 aircraft, taxiways, 42 aircraft stands and installation of a baggage handling system and other support systems, according to an aviation website CAPA. Phase 1 of the HIA project is expected to complete in 2027 with the target of 8 million annual passenger handling capacity. It will mainly be composed of one runway with 3,600 metres in length and 45 metres in width, one parallel taxiway, two taxiways, two high-speed taxiways, and other essential facilities. After Phase 3 is completed, which is estimated to be in 2048, it is targeted to reach 30 million annual passenger handling capacity.
Dala Bridge project which will connect to Yangon and Dala township shakes the land prices again
The $168 million Dala Bridge Project, which will connect Yangon and Dala township, has caused the spikes of land prices again, according to the real estate service providers. Back in 2013, the land price in Dala Township increased tenfold since talks of a bridge linking Yangon and Dala emerged. The project is now completed 20 percent, according to the Ministry of Construction.
The annual inflation rate in Myanmar dropped to USD $ 5.21 percent in October 2020 due to the pandemic
The annual rate of inflation in Myanmar, based on the Consumer Price Index, continued dropping to 5.21 per cent in October 2020 as consumer price fell amid the COVID-19 impacts, according to the inflation report released by the Central Statistical Organization, under the Ministry of Planning, Finance and Industry. There was a slump in consumer demand triggered by the COVID-19 outbreak in March 2020. As a result of this, the annual inflation rate extended its drop in October 2020, as per the report. The US dollar against Kyat is relatively weak in October, with a fall of about K20 than the previous month and a sharp drop of K214 against a year-ago period. The imported oil price dropped against September’s rate, causing the price index in the transport group to slump, the inflation report showed.
Myanmar will export corn to Thailand under zero tariff starting from 1st of February 2021
Myanmar is prepping for corn export to Thailand under zero-tariff starting from 1 February 2021, said U Min Khaing, chairman of Myanmar Corn Industrial Association. Thailand imposed a hefty tariff on import during its corn season to protect the interest of its growers. It grants tax exemption for corn import between February and August, he continued. “Thailand imposed 73 per cent of tax on corn import during the harvest season. The large tariffs prompt Myanmar’s exporters to halt the trade at that time. Consequently, we wait for the tax exemption period from 1 February to 31 August, he elaborated. Thailand yearly imports up to 5 million tonnes of corn from external markets. With the local corn consumption growing, Myanmar’s corn export is expected to reach 1.6 million tonnes in the current financial year, the association stated.
Myanmar Edible Oil Dealers’ Association (MEODA) adopted new policy to import quality edible oil from overseas
In a bid to improve local edible oil production and import safe and quality oil from overseas, Myanmar Edible Oil Dealers’ Association (MEODA) will lay down policies on import standard specifications, the association affirmed on the 28th annual meeting held virtually on 12 December. The association will raise awareness of edible oil and coordinate with the related organization to eradicate the illegal imports of edible oil, which has no guarantee for health. We must exert concerted efforts to import the quality edible oil from abroad in fulfilling the local consumption requirements, Dr Than Myint, Union Minister for Commerce delivered a message at the virtual event.
About five local garment factories have started manufacturing PPE suits to seek global market
About five local garment factories have started making personal protective equipment (PPE) suits, but Myanmar has to struggle for global market because China has taken 70 percent of global market shares, according to Myanmar Garment Manufacturers Association. “As the government encourages DaNa Facility, we are also trying to make PPE at garment factories. We need a market. Chinese PPE has already penetrated 70 percent of global market for many decades. So we find it difficult to seek a global market. If there is a market, there will also be investors. About four or five garment factories have started making PPE. Our PPE manufacturing does not mean hospital use only. There will also be PPE uniform for factories,” said Khaing Khaing Nwe, secretary of the association.
The value of fisheries exported slumped by USD $ 20 million in the past two months of current 2020 – 2021 financial year
The value of Myanmar’s fisheries exports in the past two months dropped by US$20.7 million compared with a year-ago period on account of the border trade restrictions by the neighbouring countries China and Thailand amid the COVID-19 crisis. Myanmar exported $146.849 million worth fishery products to the external market between 1 October and 27 November of the current financial year 2020-2021. The figures plunged from $167.549 million registered in the corresponding period of last FY, the Ministry of Commerce’s data showed. Myanmar’s fisheries export slightly declined over the past two months, owing to the pandemic-induced restrictions in the border trade. The export will undoubtedly grow if the trade route is open, said an exporter from the Muse border. Myanmar Fisheries Federation (MFF) targets to earn over US$1 billion from fisheries exports in the current financial year started from 1 October 2020, said U Win Kyaing, general secretary of MFF.
Myanmar government projected to export two million tons of rice and broken rice in the current 2020 – 2021 financial year
The Myanmar government aims to achieve the export target of 2 million tons of rice and broken rice in fiscal year (FY) 2020-2021 beginning October, an official from the Ministry of Commerce said Saturday. "Rice export depends on domestic market price and export demand. Myanmar managed to export around 2 million tons of rice in previous fiscal years," said Myo Thu, director of the ministry's trade promotion department.