ANANAS

Pineapple growers call for legitimate trade channel for export

Myanmar’s pineapple exports are blockaded due to the lack of the Phytosanitary Certificate (PC) issued by Myanmar’s Agriculture Department which is required for export to China, according to northern Shan State Pineapple Producers and Exporters Association. Myanmar’s pineapple has penetrated to China market. Yet, the trade halted as there is no G-to-G agreement between Myanmar and China. Myanmar has sent samples of avocado and its products to 40 countries. Thailand’s buyers also eyed Myanmar’s pineapples. However, a memorandum of understanding (MoU) matters in international trade to ease the trade barrier. MyanTrade under the Ministry of Commerce officially linked with buyers. The Agriculture Department is responsible for issuing the PC.

There is potential crop production as opium poppy substitution in the northern Shan State area. It will bring job opportunities for the local people. About 60,000 tonnes of pineapples are yearly produced from over 20,000 acres in the north of Shan State. For now, the growers are experiencing financial hardships as they cannot sell them out of the country during the COVID-19 crisis. Myanmar’s pineapples have reached markets of Beijing and Shanghai, China, for seven years. China daily demanded around 2,000 tonnes of pineapples. Earlier, they directly came to the farm to buy the pineapples.

A tonne of pineapple fetched K240,000. We do not even need to go to Muse to seek buyers. So, we are desperate for the legal trade pact. Hsipaw and Lashio mainly produce corn, watermelon and pineapples. Watermelon has both legal and illegal trading routes. If the government do not initiate the move for pineapple exports within three years, the growers will shift from pineapples to other crops for sure. At present, the growers are interested in pineapples as the sample of pineapples to five international markets reaped the excellent results. The dehydrated pineapple also attracts the buyers. However, capital is necessary as our factory can produce only the sample and still cannot manage a commercial scale.

Additionally, the northern Shan State is referred to as the brown area of the country owing to the armed groups. We do not see any NGO in the area. Only the US Agency for International Development (USAID) visited the place. The pineapple is grown across the country. The northern Shan State area produces the quality pineapple. The samples of dehydrated pineapple have been sent to the US, Dubai, Singapore, Germany and Japan. They gave good feedback. A tonne of dehydrated pineapple is worth K12 million. China is the leading buyer of Myanmar’s pineapples, and it has banned importation since 16 June 2019, for the lack of PC. Earlier, 50 per cent of pineapple production is consumed locally, and the remaining goes to China. Myanmar yearly exports nearly 40,000 tonnes of pineapples to China. Last year, pineapple grower groups from northern Shan State lost over K700 million worth 25,000 tonnes.

This year, there are about 35,000 acres of pineapples across the country; with 55 per cent in Hsipaw Township, 17 in Lashio, nine in Tangyan, six in Hsihseng, and 13 in Namsang and other townships. The pineapples are abundant during its harvest season (July and August). If the trade channel is still suspended this year, growers will suffer more losses, the association stated. Furthermore, pineapple growers want this sector to be listed on the priority sector of the COVID-19 Fund of the government. Also, the government’s long-term loan for pineapple paste, juice and vinegar businesses are required.

Source- The Global New light of Myanmar

Finnfund

Finland-backed fund invests in Myanmar microfinance sector

Finfund, which invests in responsible and profitable businesses in developing countries, has injected US$5.5 million in Early Dawn Microfinance Co., Ltd, the third largest microfinance company in Myanmar in terms of client outreach. The financing will support Early Dawn’s expansion in Myanmar’s underserved townships and peri-urban areas. Finnfund gets its funding from the State of Finland and the private capital markets, as well as retained earnings from its investments. All profits get recycled into new projects that drive sustainable development.

The state-owned fund makes 20-30 new investments worth €200 million- €250 million each year. At the end of 2019, Finnfund’s portfolio comprised 183 projects in 52 countries worth €957 million. This is its third investment in the microfinance sector in Myanmar, where almost 70 percent of the population lacks access to formal financial services. Early Dawn provides group loans to low-income women, and more recently expanded to extend individual loans to small businesses.

During the investment process, they have been impressed by Early Dawn’s commitment to responsible and sustainable conduct of business. Under instructions from the government, the lender has also rescheduled repayments and restructured loans to help borrowers survive the pandemic. Finnfund also favours businesses that advance gender equality. Almost all of Early Dawn’s clients are women, while 66pc of senior management and 60pc of board members are female.

Source: Myanmar Times

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Myanmar targets US$1B in marine exports for fiscal 2020-21

Myanmar expects to export up to US$1 billion worth of marine products in fiscal 2020-21 notwithstanding disruptions as a result of COVID-19, said U Wai Lin Maung, Director General of the Department of Fisheries under the Ministry of Agriculture, Livestock and Irrigation. This is around 17 percent higher than in fiscal 2019-20, when the country raked in US$853 million in marine exports, a 20-year high at the time.

Myanmar is expecting higher overseas demand for its fisheries and marine products with Saudi Arabia having lifted a 2018 ban on fisheries imports. Myanmar’s marine products are mainly exported to Thailand, China and Europe. However, as these are perishable products, more cooperation between the related ministries is needed to manage internal transport and storage and minimize delays at the ports both in Myanmar as well as overseas, U Wai Lin Maung said.

Last month, Saudi port authorities seized and detained 30 containers of Myanmar fisheries worth US$80,000 each due to confusion over customs and policies. U Wai Lin Maung added that his department will support local aquaculture farmers and fishermen facing difficulties to avoid disruptions.

Source: Myanmar Times

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KB Bank Myanmar to begin operations in December

South Korea’s largest housing finance bank, KB Bank, has announced that it will formally launch KB Bank Myanmar in December. KB Bank was one of the seven foreign banks to be awarded a license to operate in Myanmar by the Central Bank of Myanmar in April this year. With a license in place, it will bring in a large amount of foreign direct investment into Myanmar, KB Bank stated.

The bank plans to sell advanced financial products in the country, offer financial support to domestic businesses and SMEs, real estate and infrastructure finance, and other new instruments and services. Three of the Korea-based KB Financial Group subsidiaries now provide financial services in Myanmar, including KB Bank, KB Kookmin Card (KB Card) and KB Microfinance. The bank has already received a license to operate, the KB Card has been in Myanmar since 2017, and is awaiting final approval for its 2018 license application to operate as a non-banking financial institution in Myanmar.

The KB Card, once approved, will offer care hire purchase facilities to customers, besides instalment based loans for purchase of mobile phones and high-end home appliances. It plans to expand through a network of branches in Yangon, Mandalay and Nay Pyi Taw. KB Microfinance has been operating in Myanmar since 2017 through its 21 branches in various states and divisions in the country. It has been lending funds for homes and small businesses to the local people.

Source: Myanmar Times

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Natural gas exports top $3.5 bln last FY

MYANMAR’S exports of natural gas in the past financial year 2019-2020 amounted to US$3.5 billion, the Commerce Ministry’s data showed. The figures plunged from $3.88 billion registered in the FY2018-2019, as per Commerce Ministry data. Natural gas is included in the list of major export items of Myanmar. Over 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, totaling 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 Yadana, Yedagun, Shwe, and Zawtika 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 Natural gas export of Myanmar has fetched US$3.5 billion in the past financial year.

The Yadanar 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 Yedagun, located offshore from Taninthayi and discovered in 1992. The Zawtika Project in the Gulf of Moattama mainly supplies natural gas to neighbouring Thailand. Production at Yadana and Yedagun is declining, and those projects will be halted in the coming years.

Source: The Global New Light of Myanmar

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New ASEAN-led trade deal to boost Myanmar manufacturing sector

The newly formed ASEAN- led global trading bloc, Regional Comprehensive Economic Partnership (RCEP), could boost the Myanmar manufacturing sector, according to the research and advisory firm Oxford Business Group. Myanmar could capitalize on the 15- country trade bloc, the biggest in the world, to grow its manufacturing base, the research group said. Peter Crowhurst, the chief executive officer of the British Chamber of Commerce Myanmar, told OBG that “local, regional and indeed global manufacturers who wants to be active in the ASEAN market place are taking advantage of the opportunities in Myanmar”. The Myanmar economy is very young, it is agriculturally based and overall manufacturing is in its infancy.

Crowhurst noted that Myanmar has a lower cost base, a growing infrasture and a receptive government that is seeking to strengthen and diversity its economy. The fresh overwhelming mandate the ruling National League for Democracy received during the November 8 polls would give impetus for more reforms that would enable the country to take advantages of the RCEP. With the new government under the direction of Daw Aung San Suu Kyi, now is the time to build and strengthen capabilities of the respective ministries to support the effective and balances implementation of RCEP. During the last five years, international business invested over US$6 billion in 711 manufacturing businesses in Myanmar.

Similarly during those five years, firms mostly from Japan and Singapore invested US$1.1 billion in 50 businesses in Myanmar special economic zones. Manufacturing sector attracted the most foreign investments during the from 2016 to 2020 with $7.4 billion according to Directorate of Investment and Company Administration. The RCEP was signed on November 15 on the sidelines of the ASEAN summit. The signatories are the 10-country ASEAN, China, Japan, South Korea, Australia and New Zealand. The new trading bloc represents around 30 percent of the world’s population, 30pc of global gross domestic product and about 28pc of the international trade. ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Source: Myanmar Times

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China-Southeast Asia (Myanmar) International Trade Digital Expo

To promote the economic and trade exchanges between China and Southeast Asian countries, enhance Lancang-Mekong cooperation, deepen the comprehensive strategic partnership between China and Myanmar, and alleviate the negative impact of the COVID-19 epidemic on international economic and trade cooperation, China Council for the Promotion of International Trade (CCPIT) will exhibit the China-Southeast Asia (Myanmar) International Trade Digital Expo online from December 2 to 11, 2020 in collaboration with China Chamber of International Commerce (CCOIC)

Date: 2-11 December 2020

Host: China Council for the Promotion of International Trade

Organizer: China Chamber of International Commerce

Contact address: myanmarexploring123@gmail.com

Website: http://southeasia.ccpit-expo.com

Teleconference

2020 Yeoju-Yangpyeong South East Asian Online Trade Mission

Date: 4 December 2020 (Friday)

Time: 9:00AM-12:00PM (Morning Session) , 1:00 PM- 5:00PM (Afternoon Session)

“2020 Yeoju-Yangpyeong South East Asian Online Trade Mission” 8 participated Korean Companies want to do joint businesses with local partners in Myanmar through this online business meeting

Place: 1607 A, 16th Floor, Time City Office Tower 2

Contact address: myanmaricc2013@gmail.com

Organizer: Myanmar International Consulting Cooperation

New Myanmar economic recovery and reform plan to include agriculture improvements

The government is drafting plans to reform the agriculture sector in line with the Myanmar Economic Recovery and Reform Plan (MERRP), which is now being drafted, according to the Ministry of Agriculture, Livestock and Irrigation (MOALI) in a November 18 statement. While the plan has yet to be finalized and made official, MOALI understands it includes a framework for agricultural development and reform. This aligns with MOALI’s aim is to develop more high quality agriculture, livestock and fisheries products to raise exports and stabilize prices. It also plans to raise investments in value-added food industries and carry out reform programs across the industry. The ministry will work to strengthen linkages between farmers and food producers.

Funds will be channeled into improving domestic logistic infrastructure and storage facilities, while work will be done to clarify farmers’ land rights, accelerate contract farming and hire purchase ways for agricultural equipment. Key to reform is finding and fostering new private sector business opportunities in the agriculture sector, Paul Pleva, Office Director, Economic Growth, USAID Burma, said during the International Market Opportunities for Myanmar Agricultural Products webinar last week. USAID is ready to support upgrades and where they exist, build on existing contacts and relationships, such as those established in the US, Germany, Japan and Netherlands to improve trade. USAID supports agriculture because strong economic links between communities promotes social cohesion.

In the previous year, Myanmar exported agriculture products worth US$3.7 billion, according to the Ministry of Commerce. The government is drafting the MERRP after a recent review of the COVID-19 Economic Relief Plan (CERP), which was rolled out on April 27, as the CERP was implemented as a short term response plan to mitigate the immediate impact of COVID-19 on households and businesses, the MERRP as an extension of the CERP will set out a recovery plan aimed at rebuilding the Myanmar economy over the longer term. The new plan will focus on macroeconomic and financial stability and priorities growth strategies that are sustainable for the economy in the long run, such as investments in energy sources that are renewable. It will also include support for agriculture, infrastructure that boosts connectivity as well as human capital and innovation.

Source: Myanmar Times

Construction ministry discusses announcement of preferred bidder for elevated expressways project in Yangon

Union Minister for Construction U Han Zaw presided over the 4th meeting of the leading committee on construction of elevated expressways and outer ring road in Yangon yesterday afternoon. The Zoom meeting was also participated by the committee members and Union Ministers U Thant Sin Maung, U Win Khaing, U Soe Win, its secretary Deputy Minister Dr Kyaw Lin, departmental heads and officials from Nay Pyi Taw, and Yangon Region Chief Minister U Phyo Min Thein and Regional Minister for Electricity, Industry, Transport and Communication Daw Nilar Kyaw from Yangon.

The phase (1) of elevated expressway project will have a total length of 27.5 kilometre at an estimated cost of US$800 million. The International Finance Corporation (IFC), the member of the World Bank, is working as the consultant group for the project. The IFC has evaluated the technical and financial proposals from the 10 companies which passed

The meeting discussed cooperation of relevant ministries in the project. The elevated expressway project will be implemented by the Ministry of Construction and the Yangon Region Government under the public-private partnership system. The phase (1) of the 27.5-km long project will include a 19-km long four-lane way in the eastern part of the city, 6-km long four-lane way from east to west and 2.5-km long two-lane way connecting to Yangon International Airport to reduce traffic congestion in the city.

Source: The Global New Light of Myanmar