Myanmar to resume domestic flights on December 16, int’l flights being discussed

Myanmar is preparing to allow both domestic and international commercial flights to resume operations in the months ahead. Currently, only relief flights are permitted. Domestic airlines in Myanmar will be permitted to resume operations on December 16, according to a statement by the Ministry of Transport and Communications, which is aligned with instructions from the National-Level Central Committee on Prevention, Control and Treatment of COVID-19.

There will be conditions to meet before passengers are allowed to board though. Only those who pass health screening will be able to take the flights. While an extract date has now been announced for the resumption of domestic flights, the official health guidelines and conditions for flying have yet to be released. That domestic commercial flights are expected to benefit those stranded in other states and regions and that it will take a while more before domestic tourism returns.

Meanwhile, arrangements for regular inbound and outbound international commercial flights are also underway, according to State Counsellor Daw Aung San Suu Kyi in her national address on December 11. Plans are being made to resume connectivity with both local and international flights. International commercial flights, which have been grounded since March 29, are currently suspended until the end of the year.

Source: Myanmar Times

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Pigeon pea price shows downtick as India halts purchasing

The pigeon peas market saw a slightly downward trend in price after India’s demand has dried up, said U Zaw Moe, general secretary of Monywa Commodity Depot. The newly harvested pigeon peas are entering the market. As India stopped buying the beans, the market is cooling off. The price fell by K2,000-3,000 per basket. It declined from K28,500-K29,000 to K24,000 per basket. The prevailing price this year is lower than last year’s price amid the COVID-19 consequences. Last year, it was priced above K30,000 per basket at least, said a trader. Earlier, the pigeon peas (red grams) stockpiled in Monywa were delivered to India, and about 75 per cent of stocks were cleared at that time. As there is no demand by India so far, the traders are keeping them for now.

Normally, the pigeon peas produced in Monywa are sent only to the India market. So far, there is no direct link between Monywa and India markets although the Sagaing Region shares border with India. The peas are exported through traders from Yangon. Next, the price of chickpeas remained unchanged at K27,000-28,000 per basket in Monywa market. Meanwhile, the sesame fetched a low price during its early harvest season. The sesame price showed an uptick from K54,000 to K56,000 per basket on the back of demand by China. Also, the peanut is well traded. “The sesame and green grams are selling well in the domestic market. Of sesame varieties, black sesame is of the best quality. Exporters prefer the black and white sesame to the brown and red sesame,” U Zaw Moe said. Myanmar’s pigeon peas are primarily shipped to India and also exported to Singapore, the US, Canada, Pakistan, the UK, and Malaysia. But, the export volume to other countries rather than to India is minimal.

In the 2016-2017 budget year, over 160,000 tonnes of pigeon peas were shipped to foreign countries, while in the 2017-2018 financial year, exports topped 220,000 tonnes. Myanmar ships over 1.6 million tonnes of different varieties of pulses, especially mung beans, with an estimated worth of US$1 billion, to other counties in the 2018-2019FY. Since 2017, India has been setting import quota on beans, including black bean and pigeon peas. Therefore, the growers face difficulties to export their beans to the India market. Myanmar has to export black bean and pigeon peas under a quota system and limit period. Consequently, there is no guarantee that we could get the prevailing market price next year; the market observers shared their opinions. Following the uncertainty in markets of black bean and pigeon peas, the association suggested, in October-end, that the growers cultivate black-eyed bean more.

Source- The Global New light of Myanmar

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In the first two months of the 2020-2021 fiscal year, Myanmar’s foreign trade exceeded $ 4,300 million and created a trade deficit of nearly $ 400 million

In the nearly two months from October 1 to November 27 of the 2020-2021 fiscal year, Myanmar’s foreign trade exceeded $ 4,300 million, leaving a trade deficit of nearly $ 400 million, according to the Ministry of Commerce. From October 1 to November 27 of the 2020-2021 fiscal year, the foreign trade volume was $ 4,325.303 million. In the same period last year, the trade volume was $ 5854.550 million. Compared to the same period last year, the trade volume decreased by $ 1,529.247 million in the first two months of the current fiscal year compared to the same period last year.

The trade deficit means that imports are higher than Myanmar’s exports. In the first two months of the 2020-2021 fiscal year, Myanmar’s exports were worth $ 1,962.670 million, imports $ 2,362.633 million and a trade deficit of $ 399.963 million. Myanmar’s foreign trade is expected to reach $ 34.7 billion in the 2020-2021 fiscal year and a trade deficit of $ 2.3 billion, according to budget figures for the 2020-2021 fiscal year. In the 2019-2020 fiscal year, Myanmar’s total foreign trade amounted to $ 36.665 billion. Of this, $ 17.643 billion came from exports and $ 19.022 billion from imports.

Union Minister for Economy and Trade Dr Than Myint said that despite the high incidence of COVID-19 in the world, Myanmar has not had a major impact on trade due to cooperation in non-stop trade. Despite the high incidence of COVID-19 in the world, our efforts to ensure that trade is not disrupted have not had a significant impact on trade. As a result, Myanmar’s trade volume reached $ 36.66 billion in the 2019-2020 fiscal year, an increase of $ 582 million in exports and $ 35 million in trade from the previous fiscal year 2018-2019.

Source: Daily Eleven

Foreign tourist shopping revenue in Myanmar was $ 197.331 million in 2019, down 81 percent from COVID-19 this year

Revenue from shopping for foreign tourists visiting Myanmar fell from US $ 197.331 million in 2019 (January to December) to US $ 38.021 million by 2020, or an estimated 81%. Other related revenue from foreign visitor spending was $ 281.875 million in 2019 (January-December), down from an estimated $ 54.315 million in 2020 (estimated from January to December). As a result, revenue from tourism and related industries for the year was US $ 2,818.753 million in 2019, down from US $ 543.154 million in 2020, down 81 percentage points from US $ 2,275.599 million.

The suspension of international passenger flights at Rangoon International Airport will reduce international airline revenue by 81% by 2020, according to the COVID-19 survey on the impact on Myanmar’s tourism industry. The Yangon International Airport (YACL) Company, which provides management services, said it was working to reduce rents and reduce staff salaries due to the closure of all shops at Terminal 1 in Yangon International Airport, according to YACL. The number of passengers at the Yangon International Airport has been declining since mid-February due to the suspension of international passenger flights until December 31. Due to the suspension of the tourism sector, the airlines inside the airport, Food industry; This has affected the regular operation of freight and retail outlets.

International flights have been suspended since March 30, and some domestic airlines have suspended flights, resulting in fewer passengers and airport arrivals. Shops and restaurants at Departure Terminal 1 were completely closed, severely affecting Yangon Airport and airports around the world. They are facing an unprecedented challenge for the airline industry. As the airport business resumes, operations will resume. Action plans will be implemented that meet the requirements of the public health plan and international standards. The transformation of the current YIA will be at least for a period of time as a new normal airline.

Source: Daily Eleven

Tamu highway bus terminal construction completed

The construction of highway bus terminal in Tamu town, Sagaing Region, which is a gateway to Myanmar-India cross-border trading, is completed, said U Myo Min Tun, Executive Officer of Tamu Township Development Committee. There was no highway bus terminal in Tamu. It is self-provided building in cooperation with the relevant organizations and the local people. The construction is completed.

The operation is expected to start in the coming open season. The highway bus terminal is constructed on 5 acres of land near the roadside of Tamu-Nanphalon market. It includes two-storey buildings for gates, warehouses, 20 food stalls and 120 stores. Sagaing Region government is implementing bus terminals to facilitate public transport and trade flow. There is a plan to construct more bus terminals in Monywa, Indaw, Katha, Kalay and Tamu.

There are ten operators running air-conditioned highway bus for Tamu-Monywa, Tamu-Mandalay and Tamu-Yangon routes. And, 12 operators are proving service for cross-border transport. The terminal is situated not far from town, market and border checkpoint. As there are vacant land areas, more buildings or gates can be built later. This terminal project started in June 2018 under the approval of Sagaing Region government and Township Development Committee and other relevant organizations, to facilitate the trading and transport of the local people. 

Source- The Global New light of Myanmar

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MIC to permit raw sesame, peanut import upon approval of concerned ministries

Myanmar Investment Commission (MIC) will grant a permit on the raw and sesame seeds importation proposal if the ministries concerned will give the go-ahead, said U Thant Sin Lwin, Director-General of the Directorate of Investment and Company Administration (DICA). “We have to ask for the opinions of the Ministry of Commerce if the proposal is related to import/export business. For pulses such as beans and sesame seeds, we call for opinions from the Ministry of Agriculture Livestock and Irrigation. We will continue the processing upon the response of the ministries concerned,” he affirmed.

The ministries balance on local production and harvest season. Also, they assess whether the imported goods are suitable for the domestic market. The commission will issue the permit upon the approval of the ministries concerned, he added. Last November, Maha Nyi Ahko Company sought import permit for 10,500 tonnes of raw sesame and 32,000 tonnes of peanuts (with food waste estimated 20 per cent) under zero tariff with the contract manufacturing process. The Ministry of Commerce asked for the opinions of Myanmar Pulses, Beans and Sesame Seeds Merchants Association and the association asked again for the views of the owners of the respective depots where sesame and peanut are primarily traded on 12 November. The owners of the respective depots raised the objection to the raw sesame and peanut importation.

The association was asked opinions on sesame raw material importation three years ago and responded that the peanut and sesame are locally produced, and it should not be allowed for importation, said U Min Ko Oo, secretary of the association. Nevertheless, the association cannot afford to do anything as the raw materials can be imported to produce value-added items for exports under the existing law, he continued. Myanmar’s peanut and sesame are of high quality with the use of natural fertilizer. They are offered fair price by China, Japan, the Republic of Korea and Thailand. Additionally, Myanmar grants tax-exempt on raw material import if the goods are exported with a few exceptions. It has a direct impact on the interest of the local growers.

Myanmar has liberalized the trade and Mandalay depot sent 70 per cent of agricultural products to China through the land border. It generated the country’s revenue and brought benefits to the growers and traders. The border trade has halted during the early outbreak of COVID-19 and has resumed for now. As a result of this, the import of individual company can harm the local market. Otherwise, foreign buyers can confuse outsourcing materials with locally produced materials. Market manipulation may arise later on. We are welcome with the trade openness. Yet, it will harm the interest of the country, local growers and traders. Mandalay depot suggested that the import is not allowed. The depot showed the further opinion that vacant, fallow and virgin land should be treated and the contract farming system is required to be conducted to boost the production and offer guaranteed pricing to motive the farmers to produce a quality crop.

Source- The Global New light of Myanmar

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Myanmar’s coffee export drops by half this year

Myanmar’s coffee export has fallen by half this year on the weak demand triggered by the coronavirus. Typically, Myanmar exports about 500-600 tonnes of coffee to external markets. The volume plummeted to 300 tonnes this year, said U Thi Ha, general secretary of Myanmar Coffee Association. Following the development of a vaccine for the COVID-19, the association is expecting a recovery of the market next year. The impacts of coronavirus hurt the coffee industry as the lockdown, and physical distancing caused a reduction in consumption.

The COVID-19 crisis changed the dynamics of coffee consumption this year, and roasters, cafe owners and distributors are identifying specific trends in Asian markets that may expedite 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 tonne. Specialty coffee beans are highly demanded due to their high quality and organic production.

“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. Myanmar’s coffee has grabbed a market share in the US, with the support of USAID and Winrock International NGO. Efforts are being made to penetrate markets in Japan, the Republic of Korea, and Canada.

At present, the export of coffee is extremely low as the COVID-19 hit hard the western countries. In response to the COVID-19 in the coffee sector, innovative trade offer and digital market are required to adapt to a new normal, coupled with client-oriented supply. Moreover, the coffee growers and producers need to increase quality to enter competitive markets. As a result of this, the government-backed loan is needed to help the stakeholders survive in the crisis.

There are 40,000 acres of highland coffee plantations and about 10,000 acres under lowland coffee in Myanmar, totalling 50,000 acres. Shan State is the leading producer of coffee beans. Coffee beans are harvested between December and February. They are distributed and exported throughout the year after harvest time. Myanmar yearly exports around 400 tonnes of coffee. In 2019, it shipped about 500 tonnes of coffee to foreign markets.

Source: The Global New Light of Myanmar

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Foreigners hold 13.4 per cent of FMI shares in equity market as of Nov-end

Foreign investors have purchased 4,460,060 shares of First Myanmar Investment (FMI) on the Yangon Stock Exchange (YSX) as of November-end, holding 13.47 per cent of shares, according to statistics released by the exchange. The upper limit for foreign shareholding amount is at 14 per cent with 4,635,357 shares. The foreign investors are about to reach the limit for shareholding, and consequently, the status of buy order acceptance is suspended on 1 December 2020.

The Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. The foreign shareholding amount stood at 4,509,475 shares of three listed companies on the exchange as of November-end. At present, shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd, and Ever Flow River Group Public Co., Ltd (EFR) — are available for local investors for trading. Of them, FMI, MTSH, TMH and EFR accepted foreign shareholding, and FPB is for block trade only. The foreign shareholding ratio of the companies on the exchange, except FMI, is less than one per cent.

As of November-end, foreigners hold over 4,460,060 shares of FMI, over 38,520 shares of MTSH, 4,405 shares of TMH and 6,490 shares of EFR. The SECM, under the Ministry of Planning and Finance, issued a notice on 12 July 2019, announcing that foreigners would be allowed to invest in shares listed on the YSX. After opening bank and securities accounts, an investor can send buying/selling orders under the stock trading rules stipulated in the Trading Business Regulations, the SECM notified. Senior Executive Manager U Thet Htun Oo of the Yangon Stock Exchange highlighted, at the seminar held last year, how foreign participation would entail better capital inflows, long term and sustainable investment, encourage good corporate governance, and support market orientation.
Regarding the share trading, the foreign investors must strictly comply with the rules stipulated by the Central Bank of Myanmar.

The security companies will monitor the daily trades of foreigners, in keeping with the rules and regulations, so that they do not exceed the limit set for each listed company. Under Section 42 (a) of the Securities and Exchange Law and Section 4 of the Trading Participant Business Regulations, the YSX has granted trading qualifications to the following securities companies — Myanmar Securities Exchange Centre Co. Ltd. (MSEC), KBZ Stirling Coleman Securities Co. Ltd.

(KBZSC), CB Securities Limited (CBSC), AYA Trust Securities Co. Ltd. (AYATSC), KTZ Ruby Hill Securities Co. Ltd. (KTZRH), and UAB Securities Limited (UABSC). Investors have to send their buy or sell orders to the YSX through the securities companies who have been issued a licence by the SECM as well as a trading qualification by the YSX, according to the stock exchange. The YSX was launched three years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment seminars. The stock exchange has also sought the government’s support to get more public companies to participate in the stock market and help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge. Amid the COVID-19 crisis, Myanmar’s securities market has been able to continue operating without stopping trading.

Source- The Global New light of Myanmar

Yangon’s Thilawa Port to receive larger ships

The Myanmar Port Authority will permit larger ships with drafts of up 10 meters to call at the Thilawa Port in Yangon this month, according to its latest announcement. This is expected to enable more containerized cargo throughput at the port and encourage higher volumes of trade. About 95 percent of Myanmar’s trade is conducted by sea. In the last fiscal year, cargos worth over US$10.4 billion was exported and US$15.6 billion was imported via the maritime route.

Yangon’s two main ports, Thilawa and the Port of Yangon, are located along the Yangon river where container vessel sizes are restricted due to sandbars located along the navigation channel. Yangon port is located in downtown Yangon while Thilawa Port is located 16km further downstream. Thilawa Port, which has a draft of 10 meters, is able to handle vessels of up to 20,000 tonnes, or 2000 TEUs in capacity. Up until early this year, only vessels with drafts of up to nine meters were permitted to call at the port. Yangon Port has a draft of nine meters and can handle vessels of up to 15,000 tonnes, or 1500 TEUs.

The number of vessels to Yangon is expected to rise now that larger vessels will be permitted to call at Thilawa. According to an analysis by ocean consultancy Royal Haskoning, based on draft levels and hours of high tide, Thilawa Port can accommodate up to 4,380 annual vessel calls. With an annual vessel call of 2,483 in fiscal 2015-16, this implies that Port of Yangon volumes could be limited by channel capacit when the vessel calls increase. With an estimated maximum 4,380 calls and an average of 1,200 TEU exchange per call, the navigation channel can potentially accommodate up to 5.3 million TEU annually, according to Royal Haskoning.

Source: Myanmar Times

China-ASEAN Expo opens, featuring digital economy

The 17th China-ASEAN Expo and China-ASEAN Business and Investment Summit Kicked off on November 27,2020 highlighting booming digital economy cooperation and the implementation of a recently signed major trade pact. Themed “Building the Belt and Road, strengthening digital economy cooperation,” this year’s expo aims to deepen cooperation in trade, the digital economy, science and technology, health, and other fields. Chinese President Ci Jinping called for cultivating a closer community with a shared future for China and the Association of Southeast Asian Nations (ASEAN) when addressing via video the opening ceremony.

With an exhibition area of 104,000 square meters, the expo has 5,400 booths in Nanning, capital of south China’s Guangxi Zhuang Autonomus Region. More than 1,500 enterprises from home and aboard will participate virtually in the four-day event, according the organizers. The expo will also host 11 high-level forums and more than 160 economic and trade promotion activities. This year is designated as the China- ASEAN Year of Digial Economy Cooperation. Strengthening digital economy cooperation was the common call of ASEAN leaders at the opening ceremony. China is one of the countries that are at the forefront in developing infrastructure and is an important partner of ASEAN in promoting the digital economy in the region.

This year’s expo also highlights the Regional Comprehensive Economic Partnership (RCEP), the world’s biggest trade pact, which was signed earlier this month by 15 Asia-Pacific countries including ASEAN’s 10 member states and China. It was a massive move for regional economic integration, multilateralism and free trade. The expo features a “Belt and Road” exhibition area, and enterprises from RCEP countries including Japan, the Republic of Korea, Australia and New Zealand have participated in the event, according to Wang Lei, secretory- general of the expo’s secretariat.

High-level dialogue conducted during the expo will promote greater participation from RCEP members in the construction of the Belt and Road, said Wang, adding that the expo will help integrate the market advantages and resources of the 10 ASEAN members with the capital and technical advantages of other RCEP members. The RCEP will also provide a solid foundation for an open, inclusive, and rules-based global trade environment. Xu Ningning, executive president of the China – ASEAN Business Council, said that opening up the markets of the 15 countries to each other will bring about new changes and closer regional cooperation.

Source: Myanmar Times