April 2024 – Min Myanmar

Engineers collaborate to overcome challenges at No 1 Steel Mill (Myingyan)

All staff and engineers have to strive to operate the steel mill producing iron and steel wares, not to halt production, said Union Minister for Industry Dr Charlie Than on his inspection tour of all sections at No 1 Steel Mill (Myingyan) yesterday morning.
In a meeting with staff and engineers, the Union minister urged them to collect machines and machine parts to resume operation of the mill if it halts operation for various reasons.
He instructed officials to purchase machines, machinery, and raw materials systematically, according to the working procedures.
He urged officials to supervise efficient spending of the allocated budget on the mill, adding that individuals have to take special care of security measures for staff, machinery, mill, documents, and information.
During the visit, the Union minister inspected the water treatment plant, oxygen plant, direct reduction plant, foundry, industrial maintenance plant, asbestos bricks, machinery and raw materials of the plant.

Source: The Global New Light of Myanmar

Tender invitation for cateringservices on Yangon-Mandalay trains

According to Myanma Railways, under the Ministry of Transport and Communications, tenders will be invited for catering services for a one-year contract (from 1 May 2024 to 30 April 2025) for the restaurant cars on trains running between Yangon and Mandalay.
Tender proposal forms and terms and conditions can be obtained from the business manager’s office in Mandalay (Region 3) and Yangon (Region 7) from 4 to 26 April.
An open tender will be held at the meeting hall of the Myanmar Railways head office, located on the first floor of the Nay Pyi Taw Railways Station, at 1 pm on 29 April.

Source: The Global New Light of Myanmar

Manufacturing sector exports surpass US$8.8 bln in FY2023-2024

The export value from the manufacturing sector crossed US$8.8 billion in the financial year 2023-2024, indicating a drop of $2.09 billion compared with that of the FY 2022-2023, the Ministry of Commerce’s statistics showed.
The finished industrial goods export amounted to $10.9 billion in the FY 2022-2023.
By two modes of transport (sea and land border), Myanmar delivers manufacturing goods to foreign markets.
Myanmar exports agricultural products, livestock products, fisheries, minerals, forest products, finished industrial goods, and other goods, while it imports capital goods, intermediate goods, raw materials from CMP garment factories, and consumer goods.
Myanmar has been implementing the National Export Strategy (NES) 2020-2025 in order to bolster exports. The priority sectors of the NES comprise agricultural production, garment and apparel, industrial and electronic device, fishery business, forest product, digital manufacturing and service, logistic service, quality management, trade information service, innovation and entrepreneurship sectors.

Source: The Global New Light of Myanmar

Export/import licences now mandatory as pre-arrival documents

Seeking an import licence for the goods before arrival at the port is obligatory, and failure to do so is subject to a fine and sentence under the existing laws, as declared by the Trade Department under the Ministry of Commerce on 5 April.
In accordance with Chapter IV of the Export and Import Law, no person shall export or import restricted, prohibited and banned goods under Section 5. Without obtaining a permit, no one shall be allowed to export and import the specified goods that need to seek licences in accord with Section 6. A person who has obtained a permit or licence shall not break the licence conditions under Section 7.
According to Chapter V stating offences and penalties, whoever violates those prohibitions contained in Section 5 or Section 6 is convicted and shall be punished with imprisonment for a term not exceeding three years or with a fine or with both under Section 8. If a person holding any permit is found to violate prohibitions contained in Chapter VII, that one shall be punished with imprisonment for a term not exceeding three years or with a fine or with both under Section 9. Any person who attempts to commit or abet in the commission of any offences obtained in the law shall be punished, and exhibits will be confiscated under Section 10.
Thus, the Trade Department warned the exporters and importers of penalties for non-compliance with the Export and Import Law, directives and guidelines and informed them to seek licences first as pre-arrival documentation for all types of shipment by air, sea and land road.

Source: The Global New Light of Myanmar

CBM crackdown on gold, currency ratemanipulation impacts forex market

AFTER the Central Bank of Myanmar vowed an intensified crackdown on those involved in gold and currency market manipulation, the kyat-US dollar exchange rate slowed down in the forex market.

Kyat depreciated at K3,890 against the US dollar on 30 March, and then, the exchange rate dipped to K3,850 on 5 April.

CBM initiated an online trading market in which exporters and importers and private banks are engaged, with a view to developing the foreign currency exchange market and stopping price manipulation. The market exchange rates are officially announced on the online trading platform of the foreign exchange market. Additionally, CBM lets the authorized money changers sell foreign currency as petty cash to those studying abroad, going on a pilgrimage and working abroad, according to the CBM’s notification.

The CBM declared the daily market exchange rates on its official website and the Central Bank of Myanmar Facebook page.

Moreover, the surprise visits are being undertaken at money changers to ensure they abide by the directive issued by the Foreign Exchange Management Law.

Some unscrupulous individuals are attempting to manipulate the market by spreading misinformation from the verbal deal or sparking public concerns with malicious news about the volatile exchange rate. Some are also engaged in transactions without a valid licence, violating the existing laws.

They will face legal action under the Foreign Exchange Management Law. The CBM also informs the people of true information and data released by the departments concerned and authorized money changers.

CBM always states that it is crucial to dispel false news. Upon tips off, the authorities inspect the price speculators, and legal proceedings against them are officially declared, according to the notification released on 30 March.

CBM has been working together with law enforcement agencies to inspect and prosecute those involved in foreign exchange market manipulation, as per its notification released on 15 March.

Kyat weakened to K4,000 against the US dollar at the over-the-counter market on 19 August 2023.

Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences are allowed to deal in foreign currency and traveller’s cheques. Those holding foreign currencies without valid licences and permits will face legal actions under the law, according to the CBM’s notification released on 21 August 2023.

Notification 7/2014 dated 30 September 2014 issued by the Central Bank of Myanmar affirmingly stated that under stanza 15 of the Foreign Exchange Management Law, domestic residents are allowed to keep US$10,000 in maximum or equivalent amount of foreign currencies for six months. If those foreign currencies that have been unused for over six months have to be exchanged in local currency at the market price through authorized dealers or deposited into bank accounts.

Those illegally holding foreign currencies are to face legal actions under the Foreign Exchange Management Law, the CBM warned again.

Source: The Global New Light of Myanmar

Yangon Region Tourism Committee issues four hotel business licences

Yangon Region Tourism Committee granted licences for four hotels and one hotel construction permit at the meeting 1/2024 held at the meeting hall 4 of the Yangon Region government office on 29 March.
The committee issued four hotel licences and one hotel construction permit, having a total of 452 rooms, with an estimated capital of K20.7 billion and US$4.6 million, on 24 October at the meeting.
Additionally, the committee endorsed 64 tour licences (inbound and outbound), 42 tour agency licences, 21 tour guide licences and 22 domestic pilgrimage tour certificates. Those businesses are investment projects made by Myanmar citizens, creating over 437 jobs for locals.
After the endorsement of the projects, tourism development activities were addressed at the meeting.
At the meeting 2/2023, the committee also granted licences for six hotels, one hotel construction permit, one motel licence and one motel construction permit, having 474 rooms, with an estimated capital of over K23 billion and creating 189 jobs. The committee issued six hotel licences and one motel construction permit having 217 rooms at the last meeting 1/2023, with an estimated capital of over K10 billion, creating 120 jobs for locals.

Source: The Global New Light of Myanmar

Myanmar aims toachieve US$16.7B inexports, US$16.3Bin imports for 2024-2025FY

Myanmar is expected to meet a trade target of $16.7 billion in exports and $16.3 billion in imports for the 2024-2025 financial year.
Myanmar aimed to achieve a foreign trade balance of $16.5 billion in exports and $16 billion in imports in the 2023-2024 FY.
The country’s GDP (gross domestic product) is expected to grow by 3.8 per cent. Agriculture is expected to contribute 2.5 per cent to Myanmar’s GDP growth, 0.8 per cent is likely to come from the livestock sector, 9.9 per cent from the forest sector, 9.8 per cent from minerals and 4.2 per cent from the industry, 6.3 per cent from electricity, 3.9 per cent from construction, 6.6 per cent from transport, 7.3 per cent from telecommunications, 2.7 per cent from finance, 6.3 from other services and 3.8 from trade sector respectively. Meanwhile, the energy sector is expected to decline by 6.5 per cent, according to the 2024-2025 Financial Year’s National Plan.
According to the statistics of the Ministry of Commerce for the FY 2023-2024, almost ending, imports worth over $15 billion surpassed the exports worth $14.3 billion, showing a trade deficit.
Myanmar exports agricultural products, livestock, fishery, minerals, forest products, manufacturing goods and other goods to the external market. At the same time, it imports capital goods, intermediate goods, consumer goods and raw materials goods imported by the CMP enterprises.

Source: The Global New Light of Myanmar

Republic of the Union of MyanmarAnnouncement of Central Committeeon Prevention, Control and Treatment ofCoronavirus Disease 2019 (COVID-19)

IT is necessary to control Coronavirus Disease 2019 (COVID-19) infection continuously. So it
is now announced that public requests, orders, notifications and directives (except for easing
restrictions) released by Union-Level Organizations and Union Ministries up to 31 March 2024
have been extended to 30 April 2024 for prevention, control and treatment on Coronavirus
Disease (COVID-19).

Source: The Global New Light of Myanmar

Monthly Business Brief, March 2024

Economy

National Planning Law and Union Tax Law released

At the end of March, National Planning Law and Union Tax Law were released by the Government. The FY 2024-2025 National Planning Law promulgated on 29^th March 2024, the country achieved GDP growth by 3.5% in 2024-24 FY and the growth target will be at 3.8% in FY 2024-25. GDP by composition, the service sector has been the highest composition with 43.5%, and followed Industry Sector by 33.4% and Agriculture Sector by 23.1%. It is targeted to grow 5% in Service Sector, 3.5% in Industry Sector and 1.9% in Agriculture in FY 2024-25. Tax rates on Special Goods Tax, Commercial Tax and Income Tax are merely as same as last year.

Gold price records hike up to K.4.4 million per tical

With spot gold price climbing over US$ 2,190 per ounce and kyat depreciation to over K 3,900 against the US dollar at end of March, domestic gold price persistently surged to K 4.4 million per tical (0.578 ounce or 0.016 kilogramme).

Banking and finance

Kyat depreciates to K 3,900 against US dollar and CBM interventions

Kyat weakened to K 3,900 against US dollar at end March at the over the counter market although The Central Bank of Myanmar (CBM) intervened in the currency market by selling dollar. CBM pumped US$ 18 million, 12 million yuan and 312 million Thai bahts in March. CBM reference exchange rate is still set K 2,100 to a UD dollar. CBM revoked the licenses of six money changers and suspended four money changers to six months as they failed to comply with rules, regulations and directives.

The Central Bank of Myanmar sells foreign currencies to importers via an Online Trading Platform. It allows private banks to sell foreign currencies for petty cash at their exchange counters for people who go abroad to undergo medical treatment, study, and work, aiming at stabilizing currency exchange rates and preventing price manipulation. The dollar transaction was K3,375 per dollar at the Online Trading Platform between the banks and importers/exporters, and the three private banks under the guidance of CBM are selling between US$300 and $500 at K3,100 per dollar as a special plan. CBM warned that some Facebook pages, groups, Apps and websites intentionally spread misinformation and false news and conduct Forex trading without possessing any work licences and action will be taken.

Trade

Implementation of MACCS for Cargo Clearance Processes at Tachilek Border on 22 March 2024

The Customs Department has extended the Myanmar Automated Cargo Clearance System (MACCS) to the Tachilek (Myanmar -Thai border) area on 22 March 2024. This system is currently operational in Yangon and the Myawady border trade. Although MACCS system was practiced in Muse and Chinshwehaw (Myanmar -China border) areas, all border trade activities are suspended in those areas.

Energy

Installation of 14MW solar power system planned for Thilawa SEZ

The Ministry of Electric Power (MoEP) has announced plans to install a solar power system with a capacity of up to 14 megawatts in the Thilawa Special Economic Zone (SEZ) in Thanlyin Township, Yangon Region. Currently, three plants within the Thilawa SEZ have already installed solar systems, generating approximately two megawatts of power. Covering an area of 667.275 hectares (approximately 1650 acres), Thilawa SEZ has attracted investment from 114 companies across 21 countries.

Workshop on Improved Cook Stove Distribution Monitoring held

“Project Monitoring and Evaluation Workshop” under “The Project of CCC Program of Activities for Distribution of Improved Cook Stoves in Developing South and Southeast Asian Countries (Myanmar)” co-organized by the Dry Zone Greening Department of the Ministry of Natural Resources and Environmental Conservation of Myanmar and the Climate Change Centre (CCC) of the Republic of Korea, at Thingaha Hotel in Nay Pyi Taw. During the six year project period in Sagaing, Mandalay and Magwe Regions, it is estimated to distribute 500,000 improved cook stoves, which can save 40 per cent of fuel wood, to 218,678 households in 1,109 villages in six districts. It has already distributed over 438,000 stoves to date and could help reduce over 485,000 tonnes of carbon emission.

COVID