YRG to build EV charging stations at hotels, shopping centres in Yangon

Yangon Mayor U Bo Htay said at the coordination meeting held on 28 April that EV charging stations will be built at hotels and shopping centres in Yangon.
Yangon Mayor said charging stations need to be built in high-traffic areas for wider use due to the dense population as Yangon is a business hub.
Companies’ officials who are responsible to build charging stations explained the technical information, locations of charging stations that have been built and officials from hotels and shopping centres participated in the discussion about the charging stations to be built.
Two EV charging stations were installed simultaneously on 19 March in front of the Yangon Railway Station and the Thiri Mingala market.

Source: The Global New Light of Myanmar

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Two investment projects allowed by Yangon Region Investment Committee

On 28 April, the Yangon Region Investment Committee granted approval for two investment projects with a total amount to K2.5 billion and US$ 1 million respectively.
One enterprise invested by Myanmar citizen and one foreign investment enterprise are expected to generate a total of 163 employment opportunities for the local workforce. As per the report, the endorsed businesses include the export of value-added raw materials of rubber and the production of cartons to be sold to domestic market accounting for 100 per cent.
Furthermore, the deliberations encompassed presentations from 17 companies that raised general issues, four of which were granted permission to augment their aggregate fixed capital by a sum of $2.738 million

Source: The Global New Light of Myanmar

56 container vessels slated for port calls in May

A total of 56 container vessels are scheduled to arrive at Yangon Port in May, according to the Myanma Port Authority.
In May, 11 container vessels which are operated by Sealand Maersk Asia, seven by Samudera Shipping Line, six by RCL Line, four each by MSC Line, New Golden Sea (COSCO) and COSCO Shipping Line and SITC Line, three each by Ever Green Line, IAL Line, One Line, PIL Line, Ti2 Container Line, MITT Shipping Line, two by CMA CGM Line and MITT Shipping Line and one by Land & Sea will make port calls at terminals of Yangon Port.
This year, 52 container vessels each in January and February, 55 in March and 50 in April arrived at Yangon Port.
Yangon Port handled a total of 620 container vessels this year, according to Myanmar Port Authority.
The number of container vessels entering Yangon Port stands at 49 in January, 48 in February, 50 in March, 52 in April, 54 in May, 53 in June, 49 in July, 55 each in August and September, 50 in October and 51 in November respectively
From May 2021, the arrival of ships at terminals in Yangon has increased again. To fulfil the seaborne trade requirements, three new container vessels by Maersk Line Myanmar (SeaLand Maersk) started to run in 2021.
Earlier, the larger ships had draft problems preventing their sailing on the Yangon River. The draft extension is up to 10 metres with the new navigation channel accessing the inner Yangon River and the international ocean liners can access the inner port for now.

Source: The Global New Light of Myanmar

Monthly Business Brief, April 2023

Economy

Throughout April 2023, National Planning Law, Union Tax Law, and Union Budget Law were released by the Government. The FY 2023-2024 National Planning Law was promulgated on 31th March 2023, enacted since 1st April 2023 and released on 7th April 2023. According to FY 23-24 law, the country achieved GDP growth by 3.4% in 2022-23 FY and the growth target will be at 4.1% in FY 2023-24. GDP by composition, the service sector has been the highest composition with 42%, and followed Manufacturing Sector by 34% and Agriculture Sector by 24%. It is targeted to grow 5.5% in Service Sector, 3.4% in Manufacturing Sector and 2.4% in Agriculture in FY 2023-24.

Trade

Throughout FY 2022-23, total foreign trade volume of Myanmar was USD 34 billion which is 9% increase compared to the previous year trading volume of USD 29 Billion. Among the development in trading sector with April 2023, after successfully implementing the Direct Trade Payment Systems Yuan/Kyat and Baht/Kyat at China and Thailand throughout 2021-2022 FY of Myanmar, the Central Bank of Myanmar has formed working committee on Rupee/Kyat direct payments for India-Myanmar trade with associated government departments, state-owned banks and private banks from Myanmar. In terms of Trade Statistics, India has been Top-5 major exporting countries after China and Thailand up to February 2023. Hence, it is estimated that Trading with India border will be increasing after implementing the Rupee/Kyat Payment Systems. 

In export sector, fishery product has been one of the major exporting products of Myanmar exported to 40 countries (especially Japan, European Countries, China, and Thailand and neighboring countries) through marine trading. In 2022-2023 FY, it mainly contributed towards Country’s economy with an income of USD 765.947 Million which is however 8 % decrease (USD 59 Million) compared to previous Fiscal year (USD 826 million).In exporting to neighboring countries, they are normally delivered through Muse, Myawaddy, KawThaung, Sittway, Myeik and Maungtaw borders. There are 20 fish species products including hilsa, rohu, catfish, and seabass exporting to Foreign Countries.

In import sector, the automatic licensing and non-automatic licensing systems on Myanmar Trade Net 2.0 platform will have commenced on coming 1st June, 2023. As it is digitalized licensing system, it does not need to apply for import license for certain lines (3,075 lines) and those lines will be automatically passed through the system. According to Notification 19/2023 of MOC under the Customs Tariff of Myanmar 2022, 8,774 commodities lines with 10 digits HS Code for export are required to be applied for export/import licenses on Tradenet 2.0 and they will be granted licenses through non-automatic import license. Only after traders of those items have received licenses first in line with the export/import regulations through the non-automatic licensing process, the shipment by air, sea and road will be given the green light.

Recent developments of Electric Vehicles in Myanmar

There are four types of Electric Vehicles which can be imported to Myanmar notably as Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plugin Hybrid Electric Vehicle (PHEV) and Fuel Cell Electric Vehicle (FCEV). On recent development, the first EV Express Bus will be initiated by Local Express Bus Transport Service, Mandalarmin Transport Co Ltd, in coming months on Yangon-NayPyiTaw-Mandalay Trips and the passengers can start using it in coming months. For Public Use, MG Myanmar launched MG4 Electric Vehicle at the Myanmar Plaza on 3rd April 2023. MG Myanmar has been one of the Authorized EV Vehicle Importing Companies of Myanmar and has been launching first to the Public. In terms of Power Station for EVs, there are 19 Charting Stations on pilot project, have been implementing within this year. However, on 5th April, 2023, the power station on the Yangon-Mandalay Highway Road in Bago Region was finished. It was mainly constructed by Earth Renewable Energy Co,.Ltd. In terms of Commercial Tax, it was categorized under the Special Commercial Tax and Tax on EVs has been exempted from 1st April 2023 until the end of March 2024 with Zero Percent Custom Duty. Besides, the Road/Bridge Tolls Fee, 100 percent wheel tax, city entrance fee, charges for overweight load, showroom fee and so on have also been exempted for two years from 1st April 2023 to 31st March 2025.

Banking and Finance

The FY 2023-2024 Union Taxation Law, Union Budget Law were enacted since 1st April 2023 and released on 7th April, 2023. The significant changes in 2023 Union Tax law stated that increasing tax rates on specific goods such as liquors and income tax threshold for SME companies, and the commercial tax exemption on Battery Electric Vehicles (“BEVs”) including Battery-used electric 2/3 wheeled Vehicles, accessories, battery charging services and solar-related equipment..

In recent development in Banking and Finance Sector throughout the years 2021 to 2023, the savings at the private banks in Myanmar has significantly boosted up to 14.42 percent and 7.81 percent in loans compared to the previous fiscal year. The total credit to the GDP ratio is also 28 percent. Savings at the banks of the Central Bank of Myanmar and balance has also gained an increase of 35 and 36 percent compared to the previous year. The turnover of the Interbank Market also bumped up to 98 percent (MMK 1,166 billion) compared to the previous year and the turnover between the foreign banks and private banks get higher than previous years.

In Private banking sector development, even though there used to be are two prepaid card services such as Manchester United Prepaid Travel Card (Visa) and CB MNA Visa Prepaid Card at CB Bank Myanmar, , the prepaid card services newly launched by CB Bank can be used up to USD 1,000 per month since 21st April 2023. Moreover, it can be used to withdraw Cash from more than 210 countries around the world. The features can also topped up with CB Pay and ibanking. In transferring money, a total of 50 Million kyats can be daily transferred from CB Ban to any local bank by using ibanking service through smartphones, tablets and laptops. Ibanking account can be created at CB Bank Branches and Business IBanking account at CB Bank (UFC Tower 2nd Floor)

Investment

Throughout FY 2022-23, there were total USD 1.64 Billion of approved 87 Foreign Direct Investment projects by 12 Sectors which has been an increase of 39% compared to previous FY 2021-2022 (USD 0.6 Billion). In every years, Power Sector has been the highest FDI sector and mainly invested by China. In 2022-23 FY, more than half of total investment covered the sector with USD 820 Million and followed by service sector with 31% (USD 504 Million) and Manufacturing Sector with 17% (USD 271 Million). By countries, Singapore, China, Thailand and Hong Kong (SAR) are major investors of Myanmar.

Transportation

Major improvement within The bridge project is being implemented on Hsenwi -Kunlong-Chinshwehaw road (49/6 miles) in Kunlong Township of Lashio District with the funding of 140 Million Yuan by the Chinese Engineers and workers of China Yunnan Sunny Road and Bridge Construction Company Limited under the supervision of Ministry of Construction, Myanmar for improving the traffic and logistics sector of the Northern Shan State.  As of April, the construction period is scheduled within 30 months since 2021 and currently the project completion is on 92% and is planned to complete in June 2023. The 6-span Box Girder type bridge is 12 metres in width, and the approach road is 3.54 kilometres long on the Kunlong side and 435 metres long on the Hsenwi side. It has a load capacity of 75 tonnes.

China is major trading partners of Myanmar for decades and because of this project, This Kun long Bridge is going to be a major trading area between China and Myanmar across Lashio, TheinNi, Kunlong and Chinshwehaw and as it is exported main agricultural products such as sesame, peas, sugarcane and corn, it can become trade facilitation between two countries.

Energy

Electrification sector

There are five major types of electric power installation in Myanmar by types such as Thermal, Diesel, Hydel, Gas and Solar. In coming months, Myanmar has potential projects on Cross-border power line projects with neighboring countries such as Laos, China and Thailand to generate electricity across the country. Among electrification by types, over the half of the power generation  is by Thermal Power Stations with 52%, 45% Hydropower and the other 3% by Solar power. There are 28 hydropower stations generating 3,225 MW capacity, thermal stations generating 3,738 MW capacity and 6 solar power stations generating 180 MW to 2,143 MW. Currently, 3 solar power stations have been constructed near Naypyitaw and will be completed in 2025-2026.

 On 3rd April, 2023, the MoU amendment signing ceremony on Myanmar-Laos Power Cooperation and signing ceremony of Notice to Proceed (NTP) to conduct a feasibility study on cross-border power project to hand over to Consortium of PISASAI Energy and Mine Investment Pte Ltd and Primus Sapphire Power Limited between the two countries’ Electricity and Energy Ministries were held in NayPyiTaw. The MOU has been signed since 2018 for 5 years and there was major progress in power transmission/selling project. The project will have been extended for next term and Mekong hydropower project development program as well and will be reached to Kengtung in 2024 and Meiktila in 2026 and is able to support the electrification of Myanmar.

Fuel and Energy Sector

According to the Myanmar Petroleum Trade Association, in the peak season of April, the country had stocked a total 4.3 million gallons of 92, 10.4 million gallons of 95, 1.7million galloons of 97, 30.9 million gallons of diesel and 2.9million gallons of premium diesel to fulfill demand. It is mainly imported from Singapore through THE tanker ships. There will be no more shortage of the Fuel oil in Myanmar.

COVID

The Ministry of Health and Sports has confirmed the new detection of Omicron Variant (SARs-CoV-2) since February 2023 and has conducted COVID-19 Molecular Disease surveillance. In April 2023, there was a slight increase of the outbreak of Omicron Variant XBB.16 in Myanmar. It is 1.27 times faster infection more than the previous ones even though the symptoms were not more severe. As of April 28th 2023, there have been confirmed Covid cases of 6.3 Million, death among lab confirmed was 19,490, and recovered cases were 6.1 Million out of 10 Million total specimen test.

In order to continuously control the infection of COVID-19, announcement of the extension of the restriction of COVID’s rules and restrictions have been extended until 31 May 2023.