Monthly Business Brief, January 2025

Economy

SAC extended for next six months

According to the National Defence and Security Council Meeting held on 31 January, State Administration Council (SAC) was extended for another six months. Reconstitution of SAC with 16 members wad made and the Union Government by 34 members on 31 January.

Cyber Security Law enacted

State Administration Council (SAC) enacted Cybersecurity Law as SAC Law 1/2025 on 1 January. Objectives of this law are;

(a) To safely use cyber resources, critical information infrastructure, and electronic data

(b) To protect and safeguard the sovereignty and stability of the nation from being harmed by cyber threats, cyberattacks, or cyber misuse through the application of electronic technologies

(c) To systematically develop cybersecurity services

(d) To effectively investigate and take action against cyber crimes

(e) To contribute to a digital economic system based on cyber resources

Finance

US dollar and gold price stable

 Kyat was almost stable to Kyat 4,450 against US dollar in January due to continuous injection of the Central Bank of Myanmar (CBM). CBM pumped US$ 103.5 million with the online trading rate of K 3588/$ to those importing edible oil, fertilizer, pharmaceuticals, and medical devices on online trading platforms and also injected 3.6 million yuan and 8.3 million Thai Bahts in December.  Gold price was stable around K 6 million per tickle in the market.

Customs tariff to be collected based on CBM rate again

The Customs Department announced on 27 December 2024 that Customs tariffs imposed on goods being exported or imported will be collected according to the market online trading rate. This notification 90/2024 of the Ministry of Planning and Finance stated that Customs Department will amend the weekly exchange rate as per the online trading rate, instead of the rate based on the reference rate of the CBM, while collecting customs tariffs starting from 1 January 2025. The market online trade rate was K3,588 on 27 December 2024. However the Customs Department revoked its notification in January and tariff will be set based on CBM’s reference exchange rate is K2,100 against the US dollar as usual.

Trade

Myanmar’s rice and broken rice exports swelled to over 2.03 million tonnes in the past nine months

Myanmar’s rice and broken rice exports swelled to over 2.03 million tonnes in the past nine months of the current financial year 2024-2025 beginning 1 April, with an estimated value of $948 million according to the statistics of Myanmar Rice Federation (MRF). The Union of Myanmar Federation of Chamber and Commerce (UMFCCI) and Myanmar Rice Federation held a meeting on 9 January and highlighted challenges to bolster rice exports and coordinated matters to enhance the rice sector.The current situation of rice trade, review of plans, analysis of the international and domestic markets, challenges faced in rice export promotion and enticing warehouse operators to register on MyRO online registry platform were addressed.

Myanmar shipped 1.5 million tonnes of pulse exports from April to December 2024 including 200,000 tonnes of pigeon peas

 According to the Ministry of Commerce and Industry of India, India extended the duty-free import policy of pigeon pea (tur) to 31 March 2026. This move benefits Myanmar’s pulse growers and exporters. Also, it has a significant impact on pulse exports. Myanmar’s pigeon pea output is estimated at 300,000 tonnes. This year, pigeon pea’s yield is expected to rise. Myanmar shipped 1.5 million tonnes of pulses exports from April to December 2024 of the current financial year 2024-2025, including 200,000 tonnes of pigeon peas, Myanmar Pulses, Beans, Maize, and Sesame Seeds Merchants Association said.

Myanmar bags US$447M from maize exports in FY 2024-2025

MYANMAR exported over 1.88 million tonnes of maize to foreign markets from April to November during the current financial year 2024-2025, bagging US$447 million, according to Myanmar Maize Merchants Association. Thailand is the top importer of Myanmar’s maize. It is currently sent to China, India, the Philippines and Bangladesh. “Myanmar’s maize is in high demand among both foreign buyers and domestic feed processing factories. Starting from 1 February, maize will be sent to Thailand with the exemption of the Customs Tariff.

Energy

The Ministry of Energy to research new oil and gas fields in 2025

The Ministry of Energy will conduct a series of studies and research to discover new oil and gas fields in 2025. In line with the Ministry of Energy’s goal of ‘2025, the Year of Myanmar Energy’, field research will be conducted in collaboration with relevant universities to discover new oil and gas reservoirs and sedimentary basins by 2025, while also producing project-based research papers in partnership with these institutions. In addition, research and laboratory work will be systematically carried out to obtain quality and accurate results, which are the most important factors in oil and natural gas exploration and testing.

Transportation

Myanma Port Authority calls for open tender for TMIT

MYANMA Port Authority invited qualified local and international companies to participate in an open tender for the long-term Operation and Management of Thilawa Multipurpose International Terminal (TMIT). The most qualified company with solid experience and technical expertise will be selected transparently through an open tender, per tender procedures, to carry out port terminal operation and management for the TMIT at Plot No 25 and 26 of the Thilawa Port Area under a concession agreement. Interested operators are invited to submit the tender and tender applications must be submitted by 20 February at the International Relations and Human Resource Development Department of Myanma Port Authority.