Natural gas exports top $2.97 bln in Oct-July

Myanmar’s exports of natural gas over the past ten months of the current financial year 2019-2020 amounted to US$2.97 billion, the Commerce Ministry’s data showed. The figures reflect a decrease of $264 million compared with the corresponding period of the 2018-2019FY when the gas export value was registered at $3.235 billion, the statistics released by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The drop in the value of exports is linked to the collapse of the global oil and natural gas prices, according to an expert. Natural gas is included in the list of major export items of Myanmar. About 10 per cent of the country’s total export earnings come from the sale of natural gas. There are 53 onshore blocks and 51 offshore blocks, totalling 104 blocks.

A total of 25 onshore blocks and 31 offshore blocks are operating under foreign investment. Natural gas extraction is being made at the Yadanar, the Ye Dagun, the Shwe, and the Zaw Tika offshore blocks as well as onshore drilling blocks. Yearly extraction is elevated to cubic feet in 670.36 billion from 600 billion this year, according to the fourth-year performance statement of the Ministry of Electricity and Energy. The Shwe natural gas field, located offshore from Rakhine State, was discovered in 2014. Natural gas extracted from the field is exported to China.

The Yadana natural gas project is being carried out by the TOTAL Company, with its pipeline supplying natural gas to Thailand. Natural gas is also extracted in Yedagon, located offshore from Taninthayi and discovered in 1992. The Zawtika Project in the Gulf of Mottama mainly supplies natural gas to neighbouring Thailand. Production at Yadana and Yedagon is declining, and those projects will be halted in the coming years. Myanmar’s exports of natural gas in the previous financial year totalled $3.88 billion, as per Commerce Ministry data.

Source: The Global New Light of Myanmar

Third tranche of JICA two-step loans for SMEs approved in Myanmar

The Japan International Cooperation Agency (JICA) will disburse ¥15 billion (K190 billion) in funds under an emergency two-step loan program to help small and medium size enterprise (SMEs) in Myanmar, said JICA loan project director at the Myanmar Economic Bank. This is also the third tranche of funds distributed under the program. They are preparing to approve phase 3 of the loan agreement with JICA.

JICA’s loan has a term of 40 years at an interest rate of 0.01 percent. The funds will be distributed to state-owned and local banks, which the repackage the funds into individual loans to borrowers. Under phase 1 the program, a total of K99 billion was distributed in 2018 via 10 local banks in 2018. Phase 3 was approved by parliament in August. A borrower is allowed a maximum loan of K500 million at an interest rate of 5.5pc if there is sufficient insurance coverage, or between 6pc-10pc with lower or no insurance coverage.

The loans are repayable to the banks in five years. In the past, 80pc of the loan amount had to be allocated for fixed capital purposes, while the remaining 20pc was for working capital. Due to the current COVID-19 circumstances though, borrowers are allowed to use the latest tranche of loans solely for working capital purposes. New businesses which are less than a year old and businesses with lower income levels are free to apply for the loans.

Source: Myanmar Times

Myanmar-Thailand trade reaches $18.86 bln in past 4 years

The value of Myanmar’s bilateral trade with neighbouring country Thailand in regular trading 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 $10.73 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 18.48 pc of total trade in 2016-2017FY with an estimated trade value of US$4.6 billion, 19.17 pc in 2017-2018FY with a trade value of $5.57 billion, 40.38pc in 2018-2019FY with $5.46 billion and 39.55pc in 2019-2020FY (Oct-April) with $3.15 billion respectively.

Exports of natural gas from Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous year. This year, corn exports to Thailand rose significantly compared with the earlier years, the Ministry of Commerce stated. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country. The surge in coronavirus cases in Myanmar led Thailand to close its border area in Maesai recently.

Only six trucks are now allowed on Tachilek-Maesai bridge per day after negotiations of the two countries, the Union of Myanmar Federation of Chambers of Commerce and Industry released the news on 16 September 2020. Besides Tachilek, Myanmar is carrying out border trade with the neighbouring country Thailand through Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Maese border areas respectively. Among them, Hteekhee performed the most extensive trade in border trade with Thailand, followed by Myawady. Apart from its leading trade partner China, Myanmar’s external trade was mostly carried out with the regional trade partners. Trade with countries in the European Union, however, remained uncompetitive, compared with regional trade partners.

Source: The Global New Light of Myanmar

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Region/state investment committees endorse domestic projects worth K184.9 bln, $32.195 mln over past 11 months

Domestic investments by Myanmar citizens approved by the region and state investment committees have reached K184.9 billion and US$32.195 million over the past 11 months of the 2019-2020 financial year since October, according to the statistics released by the Directorate of Investment and Company Administration (DICA). Between 1 October and 4 September in the current FY, the relevant region and state investment committees gave the green light to 67 local enterprises to invest in various sectors.

As of 4 September, Ayeyawady Region Investment Committee cleared 13 businesses, allowing an estimated capital of US$3.428 million and K41.26 billion, while Yangon Region Investment Committee gave the go-ahead to 12 enterprises with $5.886 million and K26 billion, Taninthayi to 10 projects with $10.5 million and K40.48 billion, Sagaing to eight enterprises with $2.344 million and K12 billion, Mon to five businesses with $4.328 million and K13.6 billion, Kayah to four enterprises with K8.2 billion, Mandalay to three enterprises with $2.957 million and K12.14 billion, Nay Pyi Taw Council to two businesses with $1.634 million and K6.147 billion, Chin to two enterprises with $0.17 million and K2.535 billion, Bago to two enterprises with K5.265 billion, Shan to two projects with K5.67 billion, Kayin to one enterprise with $0.7 million and K5.6 billion, Magway Region to one with $0.042 million and K2.5 billion, Rakhine to one with $0.192 million and K2.499 billion, Kachin to one with K965 million respectively.

The domestic investments are flowing into the executing manufacturing, hotels and tourism, other services, electricity, agriculture, real estate development and mining sectors. Of them, manufacturing sector pulls the most massive investments, followed by hotel and tourism and other service sectors. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to endorse local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million.

While some projects no longer need MIC approval, businesses that are strategic to the government require the permit from the commission. Besides, those businesses that have large capital investments exceeding $5 million and that may have a possible impact on the environment and the local community need to be approved by the DICA’s proposal assessment team and the relevant ministries. With a fast-track way to set up a business in Myanmar having been introduced, investors can apply to the MIC or the state and regional Investment Committees to get their investment proposals endorsed, depending on the business type.

Source: The Global New Light of Myanmar

Health and ICT

Title: Health and ICT- ICT Talk Online panel discussion

Date: 27 September 2020, 1:00PM- 3:00PM

Panelists:

  • Dr. Khin Khin Gyi (Director, Department of Public Health, Ministry of Health and Sports)
  • Dr. Htun Thura Thet ( Founder & CEO , Myanmar Information Technology Ptd Ltd.)
  • Dr. Tin Aung Kyaw ( Assistant Director , Yangon General Hospital)
  • Dr. Htet Zan Lin ( CEO , OnDoctor Company Limited)

Moderator: Ko Zayar Phyo ( Managing Director, Techno Visions)

Contact address: https://www.facebook.com/MCIA.Yangon/

Organizer: MICA-Yangon

Commerce ministry negotiates with Saudi Arabia for export potential, including fishery products

The Ministry of Commerce has called for export potential with Myanmar products to Saudi Arabia’s market. The ministry recently negotiated with Saudi Arabian ambassador to Myanmar concerning the items identified as export potential, including honey, fish, prawn, fishery products. At present, Saudi Arabia has received Myanmar’s answers to the queries they sent regarding the new regulations. Suppose the cold storages and processing companies are found to be in accordance with the fishery import standards of Saudi Arabia. In that case, Myanmar can resume exports of the fishery products to Saudi Arabia. Myanmar exports to Saudi Arabia accounted for 30 per cent of its farm-raised fish exports and 40 per cent of rohu exports and 60 per cent of river catfish. Earlier, Myanmar yearly earned estimated US$20-35 million from fishery products exports to Saudi Arabia.

Myanmar exports marine products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union. Additionally, the wild-caught fish are sent to the UK, Italy, France, Cyprus, the Netherlands, Sweden, Greece, Belgium, and Germany markets. Export earnings from the fisheries sector during the period between 1 October and 11 September in the 2019-2020 financial year reached US$810.99 million, an increase of $119.8 million from the year-ago period, according to statistics released by the Commerce Ministry. Myanmar’s fisheries sector is hit hard by the coronavirus fallouts and the Ministry of Commerce is endeavouring to explore more fish and seafood foreign market to effectively mitigate the impacts caused by the pandemic, Yangon Region Fisheries Department stated. The MFF is making concerted efforts to increase marine export earnings by developing fish farming lakes which meet international standards and adopting advanced fishing techniques.

Myanmar’s economy is more dependent on agricultural sector to a large extent. Also, fisheries sector contributes a lot to the national gross domestic product (GDP). Its fishery production including shrimps and saltwater and freshwater fish are far better than the regional countries. If the country can boost processing technology, it will contribute to the country’s economy and earn more income for those stakeholders in the supply chain.There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar. Myanmar exported 340,000 tonnes of fishery products worth $530 million in the 2013-2014FY, 330,000 tonnes worth $480 million in the 2014-2015FY, 360,000 tonnes worth $500 million in the 2015-2016FY, 430,000 tonnes worth $600 million in the 2016-2017FY, 560,000 tonnes worth $700 million in the 2017-2018FY, and over 580,000 tonnes worth $728.257 million in the 2018-2019FY, according to the Commerce Ministry. 

Source: The Global New Light of Myanmar

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Thilawa SEZ has invested more than $ 1,360 million in 47 months, the largest in the manufacturing sector with over $ 1,170 million

Thilawa SEZ has invested more than $ 1,360 million in 47 months, with the manufacturing sector accounting for more than $ 1,170 million, according to the Directorate of Investment and Company Administration. According to the SEZ law, Thilawa SEZ received $ 1,366.621 million in foreign investment in 47 months and $ 1,177.451 million in the manufacturing sector. More than $ 1.9 billion has been invested by 111 international companies in Thilawa SEZ, 18 of which are expanding their business, according to Myanmar Thilawa SEZ Holdings Pubilc Co., Ltd.

According to the Myanmar Investment Commission, a total of $ 116.557 million has been invested in the Thilawa SEZ under the SEZ law, including an increase in investment in the first 10 months of the current fiscal year. After COVID-19, there will be opportunities to attract more Japanese investment in addition to Japanese investment in Thilawa SEZ. In addition to Japanese investment in the Thilawa SEZ, there are potential opportunities for further international investment in the COVID-19 beyond. The activities of Myanmar Thilawa SEZ Holdings Public Co., Ltd. in the post-COVID-19 rehabilitation program in our country will play a key role in solving the post-COVID-19 challenges and problems.

113 companies from 18 countries are currently investing in the Thilawa SEZ, which could employ more than 10,000 workers. Thilawa SEZ is currently one of the best industrial zones in Myanmar and is in a position to enjoy the opportunities and benefits of increased productivity. Thilawa SEZ will continue to invite investors as a perfect industrial zone. The industrial zone sector will not be affected by the COVID-19 crisis, but revenue may fall temporarily in the second half of 2020, according to the 2019 Annual Report of Myanmar Thilawa SEZ Holdings Public Co. Ltd. The annual report and financial statements for this year are for the fiscal year 2019, which is from April to September 2019, for the six-month period instead of the regular 12-month period. The net profit for the current six-month period was 8.275 billion kyats, compared to 15.61 billion kyats in the previous 12 months.

Source: Daily Eleven

Myanmar trade volumes rise despite COVID-19

Myanmar’s foreign trade volumes have reached about US$34 billion as of August, a month before the closing of fiscal 2019-20 on September 30. The country registered higher trading activity despite COVID-19. Exports hit US$16.9 billion, while imports have exceed US$17.6 billion, resulting in a trade deficit of around US$1.5 billion for the fiscal year. In comparison, Myanmar recorded a trade of around US$950 million in fiscal 2018-19, with total trade volumes surpassing US$31.9 billion for the period.

The bulk of exports comprised of finished and manufactured goods, followed by agriculture produce and mined resources and minerals. Imports comprised of capital goods such as equipment, vehicles and machinery, as well as other raw materials and commodities. The country’s top trading countries are China, Thailand, Singapore, Japan, Malaysia, India, the US, Indonesia, Korea and Vietnam. The government received 28pc of total export revenues, while the remaining income was generated by the private sector. Private businesses also contributed to the bulk of total imports.

Border trade has taken a hit in recent weeks through. Trade at Tachileik, Shan State, the border town between Myanmar and Thailand, recently came to a standstill now that Thai authorities are allowing just six Myanmar vehicles to enter Mae Sai in Thailand. The move was announced and made effective by Thai authorities on September 17 as part of measures to prevent the spread of COVID-19. Trade between Myanmar and China has also faced disruptions after Ruili was placed under lockdown on September 15 following the detection of COVID-19 in the city. Ruili is the major border crossing between China and Myanmar near Muse in Shan State.

Source: Myanmar Times