August 2024 – Min Myanmar

New tourist destinations identified in Kayin State

THE Kayin State Hotels and Tourism Department identified new tourist destinations in the region, including Padonma Cave, PhaungdawU Pagoda, and a waterfall, which will be developed as new travel attractions in Hpa-an City.

The newly developed destination, Padonma Cave, is located in the mountain far south of Tawpon Village, approximately six miles and two furlongs from Hpa-an, and it takes just over 15 minutes to travel by car. Natural water outlets inside Padonma Cave ensure that the water does not dry up, and fish are released intothe cave on New Year’s Day.

In addition, authorities conducted ground surveys to ensure that tourists can visit PhaungdawU Pagoda and the waterfall, which are located in Kyauktaung Village, Hlaingbwe Township, about 24 miles from Hpa-an. It takes about 45 minutes to travel by bus from Hpa-an, thanks to safe and reliable transportation available in all seasons.

Between 200 and 300 visitors come to PhaungdawU Pagoda and the waterfall every day, and rice with vegetable curries is served daily to the tourists. Currently, there are 22 tourist destinations in Kayin State and 60 hotels and guesthouses licensed by the government, with a total of 2,159 bedrooms.

Source: The Global New Light of Myanmar

CBM sells US$111M, 19M yuan, 79M baht in 3 weeks

The Central Bank of Myanmar (CBM) sold US$111 million, 19 million yuan and 79 million baht in the past three weeks.
CBM’s notification issued on 14 August revealed a contribution of $100 million towards the fuel oil sector. CBM announced on 9 August that it would sell $6 million, five million yuan and 10 million baht into edible oil, fuel oil and pharmaceutical sectors through online foreign exchange trading platforms in the coming weeks.
CBM sold $5 million and five million yuan for fuel oil, edible oil and pharmaceutical sectors on 2 August, after selling 69 million baht and nine million yuan for those importing edible oil, fertilizer, pharmaceuticals and medical devices on 1 August.
CBM injected $15.4 million and five million yuan into the foreign exchange market in July with a view to curbing the instability in the foreign exchange market and stopping the currency devaluation. According to CBM’s notification on 15 March, it has been joining hands with law enforcement agencies to combat and prosecute those who attempt to manipulate the currency market under the existing laws. CBM allowed authorized dealers (private banks) to operate online foreign exchange trading freely as per the market rate depending on supply and demand, starting from 5 December 2023.

Source: The Global New Light of Myanmar

MRF to stockpile up to 1M bags of reserved rice

Myanmar Rice Federation (MRF) will store up to one million bags of rice, including Pawsan rice varieties, for the State’s rice reserve.

The federation will add Pawsan rice in addition to Aemahta rice into the rice reserves. A bag weighs 108 pounds.

“Even Pawsan rice has been planned for rice reserve in the coming paddy season. This move is to stabilize the market and facilitate consumers, especially low-income families. After MRF stockpiles them, the related departments and individuals will resell them to the employees. At present, there is adequate distribution of Aemahta rice,” U Ye Min Aung, president of MRF.

The Ministry of Commerce and MRF decided to add more rice stocks to the rice reserve scheme with a view to stabilizing the market and beefing up stocks for low-income households.

According to the strategic plan of the rice reserve by the Ministry of Commerce and MRF, one to three bags are designated for rice reserve per tonne of rice export.

Source: The Global New Light of Myanmar

Bago investment committee endorses 1 US$1.2M project in August

The Bago Region Investment Committee (BRIC) greenlit one foreign enterprise with an estimated capital of US$1.2 million, according to its meeting held on 16 August.
Between 1 February 2021 and August 2024, $201.315 million and K81.11 billion flowed into the region, creating 12,490 jobs for locals.
The factories in the designated area of the industrial park are given priority for investments. The labour-intensive businesses, such as CMP enterprises and import-substitution businesses with local products, will be prioritized as well. Additionally, BRIC endorses food processing factories in the region after conducting social and environmental impact assessments in line with rules and regulations of the Food and Drug Administration to ensure food safety.

Source: The Global New Light of Myanmar

Companies permitted to store up to 50 EVs in bonded warehouses

Each company is entitled to keep 50 electric vehicles (EVs) in the bonded warehouse at the maximum, according to the notification of the National-level Leading Committee for the Development of Electric Vehicle and Associated Businesses issued on 8 August 2024.
The decision was made during the committee meeting held on 11 July 2024.
Under the guidance of the committee, the importation of EVs and related components, operation of city taxis and buses and construction of charging stations are being scrutinized and permitted during the pilot project period. Earlier, companies were allowed to store EVs in the bonded warehouse as per showroom quota prior to having import licences.
The companies need to seek import approval for EVs from the committee that will forward its approval to the Ministry of Commerce and obtain permits to store EVs in bonded warehouses along with import permits prior to shipment hereafter. The committee will inform the compliance of the bonded warehouses’ standard operating procedures working committee and submit bills of landing documents mentioning the bonded code to the Myanmar Customs Department before arrival at ports. At that time, the Customs Department will screen documents. The committee has notified those companies that pass the aforementioned steps that they are allowed to store 50 EVs at a maximum.
The companies need to send an acknowledgement letter of that notification unfailingly to the secretary of the committee by 15 August 2024.

Source: The Global New Light of Myanmar

Myanmar’s first airlineservice centre by MAIlaunches

Shoppe by MAI, Myanmar’s first airline service centre, was launched in Yangon yesterday.
The launch was held at the International Business Centre (IBC) in Hlaing Township, Yangon. Shoppe by MAI is a one-stop service centre that can provide customers with all the airline services.
Located at IBC, the beautiful modern office design will give customers comfort and provide a one-stop service for airlines.
Shoppe by MAI is a combination of comfort and innovation, and it is not an ordinary service centre, but it will fulfil the needs of travelling and daily life. It will feature MAI’s partners UAB Bank and Miracle Café and Lounge, deal with customers’ enquiries and offer all necessary services.
Customers can buy MAI’s and Mingalar’s tickets, other services and souvenirs, plus UAB’s financial services while relaxing at the Miracle Café and Lounge.

Source: The Global New Light of Myanmar

Monthly Business Brief, July 2024

Economy

SAC extends six-month term for serving State responsibilities

The National Defence and Security Council held the 2/2024 meeting in Nay Pyi Taw on 31 July 2024 and extended six-month term for serving State responsibilities till end January 2025. SAC Chairman pointed out the reasons for extensions that some foreign countries encourage armed insurgents and terrorist groups and political dissenters with monetary assistance, food, medicines, arms and ammunition, technologies and logistic opportunities in order to shape Myanmar as expected for prolonging armed conflicts. In addition, he expressed that some countries impose economic sanctions against Myanmar, applying more sanctions against banks not running banking services, blocking border trade in various ways and means, and encouraging ethnic armed organizations from border regions in various ways in order to seek profits and manipulate these areas.

Flood victims evacuated to relief camps, provided with relief supplies

More than 10-day torrential rains in July trigger flash flood and overflow of rivers and creeks in many parts of the nation, inundating some low-lying areas of regions and states. Transportation routes such as motor roads and railway lines in lower Myanmar were flooded and blocked. Volunteers and service personnel from relevant departments carry out rescue and relief measures under the supervision of relevant disaster management bodies in regions and states while health personnel perform necessary healthcare services and prevention of infectious diseases for the people from flood-ravaged areas.

Finance

Kyat depreciates to K 5,400 against US dollar and gold price increased

Kyat weakened to K 5,400 against US dollar at end July at the over the counter market. The Central Bank of Myanmar (CBM) sold US$5.4 million to those importing edible oil, fertilizer, pharmaceuticals, and medical devices on online trading platforms and injected 5 million yuan in July. Gold price reached kyat 6.8 million per tickle.

Trade

Over 6,000 online businesses registered by July

As of July 2024, more than 6,000 online businesses were officially registered, according to the Department of Trade under the Ministry of Commerce. The department is conducting the registration process in accordance with the Consumer Protection Law and other existing laws to ensure that consumer rights are protected in the online sales sector in Myanmar.

To apply for a registration certificate for businesses selling online under the Essential Supplies and Services Law, an introduction and awareness ceremony for the registration application system, as per notifications held in October 2023. Additionally, starting on 1 January 2024, the department announced that action would be taken against unregistered online sales.

Efforts underway to reopen India-Myanmar border

Union Minister U Myint Kyaing for the Ministry of Immigration and Population and the Indian Ambassador to Myanmar discussed on 24 July resuming border posts, including the Tamu-Moreh border. The discussion emphasized visas for people of the two nations, the resumption of border checkpoints to facilitate entry and exit processing between Myanmar and India and technical cooperation for e-ID systems for immigration. Myanmar-India border trade uses three border crossings from Tamu to Mandalay. Myanmar also carried out border trade through Sittway Port.

Manufacturing

Myanmar garment struggles with labour shortage amid order surge

Although the garment factories in Myanmar’s industrial zones have received more orders than before, they are facing a shortage of local workers. Garment factories have more opportunities to receive such orders from abroad, but currently, factory workers are moving illegally to garment industries abroad. Now, there are industrial zones on the border with China, so the workers go there illegally. As they can show their competence in practical work, they are employed with accommodation and meal allowances according to garment manufacturers.

Energy

Thanlyin Oil Refinery to resume operations aiming for EURO 4 standard

ACCORDING to the Ministry of Energy (MoE), the No 1 Oil Refinery (Thanlyin) will resume operations and aim to achieve at least EURO 4 Standard quality. On 27 July, the Union Energy Minister disclosed that the No 1 Oil Refinery (Thanlyin) would restart as soon as possible to produce and distribute fuel to meet domestic demand. A site survey, factory design, installation of necessary equipment, and construction work must be completed in line with prescribed standards to resume oil production.

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