Posts in category: ECONOMY

TOTAL export values for Myanmar in the third week of December 2023 exceeded US$ 266 million. Foreign demand for agricultural produce from Myanmar has been on an up-ward trend, given the current new year period. Agricultural produce such as green gram, black gram, pigeon peas, and other beans and pulses, sesame, peanuts, watermelon, cucumber, fruits, raw rubber, and onions, as well as industrial finished products like CMP textiles, have all experienced increased exports.

During this week, a total of 24,779 tonnes of beans and pulses were shipped, earning more than $21 million. Shipments to Pakistan, Thailand, the United Arab Emirates, Vietnam, Canada, the United States, and Japan increased compared to previous weeks.

Demand for sesame has also surged during the new year period. Sesame shipments to China this week exceeded those of previous weeks. Additionally, sesame demand from Japan, Thailand, Singapore, and Chinese Taipei remained high.

Black sesame prices ranged between $ 1,380-$ 1,815 per tonne in the export market, and domestic prices trended upwards in wholesale markets across states and regions, ranging between K295,000 and K340,000 per 45-viss bag of black sesame.

The garment industry plays a crucial role in Myanmar’s economic growth. In the past week, Myanmar earned over $ 82 million from garment exports manufactured under the cut-make-pack (CMP) system, exported to 53 countries. Major orders came from Japan, Poland, South Korea, Britain, and the United States.

The State prioritizes the development of the CMP system to boost the export sector. Apart from garments, the CMP system is used for manufacturing other products in Myanmar, such as electronic products, shoes, bags, wigs, magnifying glasses, and cameras.

Efforts are underway by the Myanmar Garment Manufacturers Association and relevant bodies to transition from the CMP system, involving the entire manufacturing process from receiving raw materials to producing finished products at the factory.

This move aims to develop the domestic industrial sector, ensuring greater profitability for business owners and strengthening the country’s economy.

As part of the State’s efforts to boost the country’s economy across various sectors, the following are prioritized: increasing productivity and the export of rice, beans and pulses, corn, oil crops, rubber, and fruits; raising foreign income from exporting CMP garments; and expanding manufacturing businesses using the CMP system.

Source: The Global New Light of Myanmar

YANGONITES are currently experiencing fuel crunches amid the forex market policy changes, and
cold storage charges are likely to increase, U Hla Han, a chilli pepper warehouse owner, told the Global New Light of Myanmar (GNLM). The cold storage charges and labour wages are approximately K1,000 per viss of chilli pepper as of the second half of 2023. The traders who stored chilli peppers at cold storage last year reaped a handsome profit in late 2022.
The cold storage charges were K75 in 2022 and increased to K125 per viss in 2023. The prices stood at
K8,000- 8,500 per viss of chilli pepper and K11,000-12,000 per viss of bell pepper in mid-2022. After
processing them at cold storage, they were sold at K19,000 per viss of chilli pepper (Moehtaung variety) and K31,000 per viss of bell pepper at the end of the year.
The prices declined in 2023 owing to the weak demand. Some chilli peppers are found to be sent to
cold storage in mid-2023 to earn great profit. The negative consequences of the fuel market might affect fuel-related businesses. Subsequently, the cold storage charges are expected to increase due to lengthening power blackouts and difficulty in buying fuel oil (diesel). The charges are possibly double or more compared to last year. Consequently, those traders who kept the stocks in cold storage saw little chance to make a profit this year.

Source: The Global New Light of Myanmar

In the domestic fuel market, the price of diesel is usually higher than octane, but at the beginning of this month, diesel is still three hundred kyats cheaper than octane per litre. Truck terminal operator, U San Win told the GNLM that diesel vehicles (especially trucks) are much cheaper than octane vehicles and rental vehicles. On 1 December, the price of 92 and 95 octane oil increased by K340 kyats per litre, but diesel only increased by K10 per litre. From 2 to 4 December, 92 octane is

K2,510 per litre, 95 is K2,640 per litre, diesel is K2,210 per litre, and premium diesel is K2,305 per litre as per reports. On 1 June 2015, the retail price of 92 octane was K730 for one litre and diesel was K690, but on 7 August, when the price of fuel oil fell in 2022, 92 octane was K1,615 per litre, and diesel was K1,970. On 31 August, the price of 92 octane was K2,605 per litre, and diesel was K3,245 per litre. On 4 May 2023, the price of 92 octane was K1,905 per litre, and diesel was K1,795 per litre.

However, on 5 May, one litre of 92 octane was K1,990, and diesel was K2,405 again. At the end of that period, the price of 92 octane was lower than diesel, and in early December, the price of 92 octane increased more than diesel. Around 60,000 taxis operating in Yangon use octane as well as gas-powered vehicles, therefore, due to the increase prices of octane, most passengers choose gas-powered vehicles for their journey to cut cost.

Source: The Global New Light of Myanmar

ACCORDING to the oil market in Yangon, about 70,000 tonnes of edible oil will be imported from abroad
starting December. In 2022, the average monthly import was only around 40,000 tonnes, but in July, the
maximum was imported with around 58,000 tonnes, and in February and September, only around 32,000
tonnes were imported, according to the statistics.

In the first six months from April to September of this year 294,457 tonnes of edible oil worth US$294.58
million were imported from abroad. In addition, it is reported that 33 companies will import oil in bulk and 27 companies will import ready-packaged consumer oil in December of this year. This week from 20 to 26 November, the wholesale price of edible oil is K4,990 per viss and the retail price is K5,180 per viss in Yangon, K5,600 per viss in Mandalay, K5,500 in Magway, K5,500 in Pathein and in Pyay, and K5,200 in Monywa. In December, local oil sellers are expecting to buy more oil imports from abroad at around the wholesale price in the market. They also wish to have a normal situation where they buy as usual in the market.

The oil market will return to normal if there are systematic actions against selling oil at more than the set price and storing more than the limit. If so, it is expected that the scenes of time-consuming queues for buying edible oil and increasing profit in selling will disappear. According to staff of the shops at the Bayintnaung brokerage, it has been several months since the scenes of crowded people lining up to buy the oil at the depots disappeared.

Source: The Global New Light of Myanmar

RUMOURS suggesting that the amount of cash withdrawals from bank deposits is being limited and
that some private banks are providing advance salaries to their employees have recently circulated on social media and internet websites. These claims are fake news and false information.

There is no limit imposed on the amount of cash withdrawals from bank deposits. Thanks to the Core
Banking System, banking services are now available at any branch of a bank throughout the nation, as the
deposit account data of customers are readily and conveniently accessible at each branch. Moreover, digital banking services, as well as payments, can be easily made, and all banking services are being provided as usual. Customers of the banks continue to enjoy regular banking services.

Therefore, it is announced that the Central Bank of Myanmar (CBM) is now working in cooperation with
law enforcement organizations to identify those who spread fake news intending to damage the public interests and to impose deterrence punishment against them.

Source: The Global New Light of Myanmar

Union of Myanmar Federation of Chambers of Commerce and Industry’s officials met a delegation led by the chairperson of Yunnan Provincial General Chamber of Commerce (YPGCC) on 17 October 2023 and exchanged ideas on boosting bilateral economic cooperation and enhancing trade.

Yunnan Province is ranked 37th in the global economy. It plays a pivotal role in the Belt and Road Initiative. It is the commercial and transport hub. Myanmar is the largest trade partner of Yunnan Province and the biggest import sourcing and export market. In 2020, 190 non-financial foreign investment projects were brought into Myanmar.

UMFCCI President U Aye Win gave a remark at the meeting that “Yunnan is the important land port in trade and economic cooperation with Myanmar. Myanmar’s agricultural produce is primarily sent to China. The UMFCCI asked the YPGCC to assist Myanmar businesses to meet China’s import rules and regulations. The federation also invited investments in the power sector and other sectors. The YPGCC plays a key role in the active involvement of private sectors to step up economic cooperation and trade promotion activities.”

Additionally, a Memorandum of Understanding to implement the Myanmar-China Economic Corridor (CMEC) was signed on 7 February 2018.

Dr Gao Feng, chairman of the YPGCC, addressed that the purpose of the visit is to reinforce the MoUs signed between Yunnan and Myanmar, cooperate in the energy and mining sector, disaster mitigation, tourism, poverty alleviation and upgrade the Myanmar-China Economic Corridor. Businesspersons from Yunnan accompanied him during his visit to bolster economic and trade cooperation between Yunnan and Myanmar.

Furthermore, bilateral investment development, communication development for trade promotion, information exchange, reinforcing practical cooperation, port business, rice supply, fertilizer supply, agricultural exports, digital transformation and cross-border trade were also highlighted at the meeting.

The representatives from the two chambers also discussed matters regarding potential cooperation opportunities and opinions on the mining sector, iron and steel, transport, e-commerce, tourism, agriculture, pharmaceuticals, sugarcane, sugar, peanut, vegetable, fisheries, food products, research and agricultural chemicals. 

Source: The Global New Light of Myanmar

Deputy Prime Minister Union Minister for Planning and Finance U Win Shein presided over a workshop on enhancing linkages between statistics users and providers in Nay Pyi Taw yesterday.
Speaking at the event, the Union minister said the statistics system of Myanmar is decentralized and only the cooperation of statistical departments and firm linkage can release accurate, qualified and reliable statistics.
The enhancement of linkage between the users and providers of the statistics plays a key role in the National Strategy for Development of Statistics for Myanmar and the User Engagement Strategy was drafted in 2019 with the help of the UN Statistics Division and International Development Partners.
He then talked about the “survey of users’ opinions on statistical yearbooks and digits released by Central Statistical Organization” conducted in September 2023 online and urged to understand the needs of users to release the statistics that can also support the development of the national statistical system.
Permanent Secretary Dr Soe Win also discussed the topic of Promoting Statistical Literacy for All while Improving Statistics User-Provider Relations by Deputy Director-General U Than Zaw of the Central Statistical Organization. At noon, the relevant officials of governmental departments and the Myanmar Statistics Association organized a roundtable discussion under the title of “Dissemination of Official Statistics” and “Statistics User Participation and Stakeholder Engagement”.

Source: The Global New Light of Myanmar

Myanmar Agro Exchange Public Ltd (MAEX) will add two more facilities for dried commodities in early 2024 at the Danyingon wholesale market.
The staple food such as rice, edible oil, salt, chilli, onion and potato will be available at those two facilities (No. 5 and No. 7 buildings), which are slated to be opened in January-February 2024, and they will house over 600 stalls.
The MAEX opened a fruits and vegetables wholesale market with over 1,100 shops on 1 October 2023.
That fresh produce market located in the compound of Danyingon wholesale market has been offering seasonal and other fresh produce.
Additionally, the market is equipped with two cold storage facilities. It might help reduce the wastage of fruits and improve the shelf life of fruits and vegetables by storing them at a cool temperature. It is opened at the No 1 market building to save transport costs and labour wages.
Fresh produce traders are invited to run business in the Danyingon wholesale market. For further details, traders can contact Ph: 09 261289462, 09 775435975, 09 250 493 456 of the market or enquire about Building B 12 of Danyingon wholesale market in Insein Township, Yangon. The Danyingon wholesale market was developed in 2017 by the MAEX and Yangon City Development Committee. New market development started in 2018 and the construction is scheduled to be finished in 2027.
At present, there are 3,360 stalls at the green groceries facility (No.2 building), 1,120 stalls for dried groceries (N0.3) and over 1,400 stalls at the fresh produce and fish and meat facility (No 4). 

Source: The Global New Light of Myanmar

FUEL prices showed a three-day decrease of over K100 per litre in the domestic market. Fuel prices
were K2,440 per litre of Octane 92, K2,565 for Octane 95, K2,650 for diesel and K2,725 for premium diesel on 18 September and then, the prices slipped to K2,330 per litre for Octane 92, K2,435 per litre for Octane 95, K2,530 for diesel and K2,610 for premium diesel on 21 September, indicating a decline of 11-130 per litre depending on types of oil. The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, weighs on the domestic fuel prices, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. Last August 2022, the oil prices touched the highest of K2,605 per litre for Octane 92, K2,670 for Octane 95,
K3,330 for premium diesel and K3,245 for diesel.

The committee is therefore steering the fuel oil storage and distribution sector effectively so as not to
have a shortage of oil in the domestic market and to ensure price stability for energy consumers. The
Petroleum Products Regulatory Department, under the guidance of the committee, is issuing the daily
reference rate for oil to offer a reasonable price to energy consumers. The reference rate in the Yangon Region is set on the MOPS’s price assessment, shipping cost, premium insurance, tax, other general costs and health profit per cent.

The rates for regions and states other than Yangon are evaluated after adding the transportation cost
and the retail reference rates daily covered on the state-run newspapers and are posted on the media and
official website and Facebook page of the department daily starting from 4 May. The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if
they are found overcharging rather than the set reference rate.

As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is
produced locally. The domestic fuel price is highly correlated with international prices. The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those of regional countries. Some countries levied higher tax rates and hiked oil prices compared to that of Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also levies only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate.

Source: The Global New light of Myanmar

MYANMAR uses the yuan to pay for supplies of Russian petroleum products, Minister of Investment
and Foreign Economic Relations of Myanmar Dr Kan Zaw told Sputnik, adding that the parties are preparing an agreement on the mutual conversion of national currencies.
“We are using yuan and not (paying) with roubles at this moment. But we are trying to make the kyat-
rouble agreement (on the mutual conversion) … (the agreement) is going (to be signed) very soon,” Dr Kan Zaw said on the sidelines of the Eastern Economic Forum (EEF) in Vladivostok.

In addition, Dr Kan Zaw expressed hope that Myanmar would conclude an agreement with Russia on
tourism on the sidelines of the EEF.Last September, Myanmar’s Prime Minister Senior General Min Aung
Hlaing told Sputnik that the country had begun purchasing Russian petroleum products.
Myanmar will begin accepting cards from the Russian Mir payment system in October, Dr Kan Zaw
said. “Mir cards could be used starting from October, I hope,” he said on the sidelines of the Eastern
Economic Forum (EEF) in Vladivostok, adding that an agreement on this issue was signed between the central bank and six commercial banks. The eighth EEF is taking place on the campus of the Far Eastern Federal University in the Russian city of Vladivostok from 10 to 13 September. RIA Novosti is the official media partner of the forum.

Source: The Global New Light of Myanmar