Monthly Business Brief, August 2024

Economy

Speech of SAC Chairman on country security condition SAC Chairman Senior General Min Aung Hlaing gave public speech on the country security conditions on 5 August on TV channels. He expressed attacks of various EAOs, PDFs and insurgent groups in the country since September 2023.  Some foreign countries wish for the existence of armed conflicts and shaping the form of Myanmar as they are providing financial support, food, medicines, modern arms and ammunition, technologies such as drones, rockets and logistic opportunities to armed insurgents and terrorist groups from politically diverse persons, helping malicious media outlets to wage psychological warfare. With regard to the situation of armed conflict areas, members of Tatmadaw and MPF, people’s militia members, wives of Tatmadaw members and family members were dead and wounded in addition to missing. The security forces withdrew their positions by considering the security of current areas and the safety of people. The Armed Forces will be a drive to cease armed terrorism in the country and to develop education, health and socioeconomic life of the people with peace and stability under the rule of law. He informed Myanmar people have to notice that as global affairs are deeply complicated and people have to unite among all to ensure the existence of Myanmar as long as the world. He urged to safeguard the motherland through united strength.

He mentioned on the economic sector that it is necessary to manufacture a large volume of products to boost the state economy, efforts must be made to increase production and export volume continuously. Hence, he pointed out how to leverage productivity based on the agriculture and livestock sectors.

New minimum wage of K6,800 starts 1 August

THE National Committee for Setting Minimum Wages announced on 9 August 2024, through Notification 1/2024, that the new minimum wage of K6,800 will be implemented starting from 1 August. This decision comes after discussions with representatives from various sectors under Sub-section (D) of Section 10 of the Minimum Wage Law 2013.

Finance

US dollar and gold price stable

 Kyat weakened to nearly K 7,000 against US dollar in mid-August but it was stable to K 5,500 at end of August at the over the counter market.  The Central Bank of Myanmar (CBM) sold US$ 190 million to those importing edible oil, fertilizer, pharmaceuticals, and medical devices on online trading platforms and injected 19 million yuan and 79 million Thai Bahts in August. Gold price was stable at over kyat 60 million per tickle.

Trade

Importers must adhere to pre-established reference prices

IMPORTERS need to follow pre-established reference prices starting from 12 August 2024 when seeking import licences and processing customs declarations for imports, according to the Trade Department’s Notification released on 6 August. The Committee on Customs Valuation, which consists of officials of the Myanmar Customs Department and Trade Department, analyzed and established import reference prices for 3,279 items (HS code 373 lines) with the aim of ensuring the right price for imported goods. Import prices will be analyzed and changed accordingly.

Manufacturing

Myanmar and Russia to build foliar fertilizer factory in Nay Pyi Taw

Myanmar and Russia will collaborate to establish a factory in Nay Pyi Taw to produce foliar fertilizer. The two countries have already discussed signing a Memorandum of Understanding (MoU) for bilateral economic and technological cooperation, as well as importing natural foliar fertilizer from Russia. Additionally, they have explored collaboration in investment, agriculture, and mining.

Energy

Increasing electricity bill rates

The Ministry of Electric Power upgrades the power plants and power grids. It also conducts extensions and maintenance works in collaboration with local and foreign investments. In distributing stable power to the public, as the costs for power generation become higher in respective financial years, electricity bill rates must be renewed. Therefore, the ministry reported to the Union Government that it would amend the electricity bill rates. The maximum rates for household uses from K 125/unit to K 300 and Industrial and organization uses are from K 300/ unit to K 500. 2. The amended electricity bill rates will come into force effective from 1 September 2024.

 COVID

  • In order to continuously control the infection of COVID-19, the rules and restrictions have been extended until the end of September 2024.
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