Posts in category: ECONOMY

Indonesia-Myanmar Roundtable Dialogue with participants from Indonesian and Myanmar successful entrepreneurs was held at the Sultan Hotel on the same day and stepped up bilateral trade and economic cooperation.

The two countries reaffirmed the commitment to maintain vigorous economic relations at the roundtable dialogue, which took place during the ASEAN Business and Investment Summit held in Jakarta.

The dialogue shed light on promising trade and investment cooperation in various sectors, from best-selling consumer goods to garment manufacturing and energy collaboration and financial and trade transaction matters.

The chair of ASEAN-BAC and the KADIN, Mr M Arsjad Rasjid P M elaborated that “As ASEAN matters as an epicentre of growth, we make sure to leave no one behind. We expect cooperation in the multiple industries of the two nations.

The ASEAN-BAC Myanmar Chair and President of the UMFCCI U Aye Win expressed his deep appreciation to the KADIN for cooperation and support. He highlighted that economic stability plays a pivotal role in accelerating the momentum of regional integration”.

The MoU between the KADIN and UMFCCI covers knowledge sharing, best practices, organizing joint activities like conferences and workshops and prioritizing the promotion of business ventures and projects. Last but not least Indonesia plays a pivotal role in the palm oil supply for Myanmar’s households. Similarly, Myanmar is also crucial in the rice and pulses trade for Indonesia. Thus, dealing with food security is of vital importance, he emphasized in the dialogue.

Source:The Global New Light of Myanmar

Ministry of Commerce’s efforts are to stabilize domestic rice prices and avert escalation

The Ministry of Commerce stated that they have started to use the export licence system, which will be applied only after the rice and rice products to be exported are pre-screened and 100 per cent ready, even though the rice export licence will not be suspended.
The Ministry is working to stabilize domestic rice prices and prevent further price increases. The Ministry also responded to the Myanmar Rice Federation’s submission for a three-month suspension of rice and rice products exports, saying that no suspension will occur. Despite that, they started exercising the export licensing system on 1 September, which will be granted only when 100 per cent of the rice and rice products to be exported are pre-verified and ready.
In addition, the implementation of the system of warehouse registration has already started to stabilize the price of domestic rice, ensure that the price does not rise again, and control the actions of the hoarders to manipulate the market.
As of 21 August 2023, there were 3.449 million tonnes of rice left in the country, and if the 2.371 million tonnes needed for domestic consumption in the three months until November were subtracted, there would be 1.077 million tonnes of rice left. As there is a condition to export rice regularly, there is no need to suspend the export of rice.
A total of 0.928 million tonnes of rice have been exported from October 2022 to 18 August 2023.

Source: The Global New Light of Myanmar

Economic Committee needs to persuade businesspersons to invest in agriculture, livestock and manufacturing industries directly benefiting the State and the people

Two terms of democratic government left more than US$12 billion each of trade deficiency, totalling some $25 billion. These trade deficiencies were propped with cash assistance and loans, said Chairman of the Economic Committee Chairman of the State Administration Council Prime Minister Senior General Min Aung Hlaing at the committee meeting 7/2023 at the SAC Chairman Office yesterday morning.
Amid sanctions and destructions, the Senior General recounted the government strived to promote the State economy to hug above nine per cent of GDP (+3 per cent of GDP in the 2021-22 financial year from -5.9 per cent of GDP in 2019-20 FY).
Currently, the government spends more than US$600 million on the import of cooking oil yearly. Hence, the State economic promotion fund was allotted to ensure local oil sufficiency, with a plan to increase the production of cooking oil at home in 2025 and to shape the country to become an oil exporter country.
The Senior General recounted that attempts were made to hinder the ways for the country not get deserved foreign exchange so as to face economic crises, adding that unscrupulous persons made misinformation to raise commodity prices.
The Senior General stressed the need to prioritize the businesses to have a quick win and instructed officials to take action against manipulators of the commodity prices under the procedures.
The Economic Committee needs to persuade businesspersons of investing in agriculture, livestock and manufacturing industries directly benefiting the State and the people, urging them not to do businesses which can be easy to earn incomes.
As neighbouring countries expose the operation of trade and services based on illegal remittance agencies (Hundi), action must be taken against Hundi agencies that harm the State economy whereas the trade process should be done in linking banks for monetary affairs.
The Senior General pointed out that some banks have not been operating their processes in a correct way since the current government took office. As such, it is necessary to systematically monitor the work processes of banks.
The Senior General underscored that it is necessary to implement Kyaukpyu, Dawei and Thilawa special economic zones to have quick progress to benefit the State and neighbouring and regional countries. Likewise, projects of Kyaukpyu and Dawei deep seaports must be implemented as quickly as possible.
The government must provide impetus to the businesspersons doing business to contribute to the State economy.
The Senior General pointed out that agriculture and livestock zones and industrial zones must be supervised to allocate the land plots to those who will actually run the businesses.
Regarding the tourism sector, the Senior General urged regional and state authorities to make preparations for enhancement of the inbound and outbound tourism services in the open season, and they all must review the measures of State economic promotion.
The Senior General gave guidance that relevant ministries have to cooperate with companies in building crude oil mills and oil refineries at the strategic sites for the production of cooking oil. Use of cultivable lands in other ways must be supervised under the rules and regulations.
Operating economic zones is the best to expedite the momentum of the State’s economic promotion. Officials need to restrict the process for businesspersons not to spend unnecessary payments along the trade routes.
The Senior General stressed the need to upgrade border trade camps in Kampaiti, Muse, Chinshwehaw, Tachilek and Myawady. He unveiled that the government is considering the construction of the Muse-Mandalay railway as well as the Chinshwehaw-Lashio railway. The project of railway from Kyaukpyu deep seaport to Mandalay is being implemented for the improvement of commodity flow. The Senior General instructed officials to strive for the resumption of the Tamu road contributing to the India-Myanmar-Thailand tripartite communication route.
In conclusion, the Senior General underscored that the export of commodities should not harm local consumption, urging all to try hard to secure success in the implementation of the projects.

Source: The Global New Light of Myanmar

THE Central Bank of Myanmar yesterday issued a public notice saying those who keep foreign currencies without permissions or licences will be taken action under the Foreign Exchange Management Law.

The CBM issued a similar notice before in its effort to encourage the people not to keep foreign currencies.

The 20 August notice also referred to Paragraph 15 of the Foreign Exchange Management Rules, issued as Order No 7/2014 by the Central Bank of Myanmar dated 30 September 2014 which states “A resident can possess, for up to six months from the date of receipt, US$ 10,000, or other types of foreign currency in an equivalent amount, if obtained legally by this person.

“If the foreign currency is not used within six months, it shall be sold to, and exchanged by, foreign exchange dealing licence holders at the market price or deposited in a bank account.

” The notice also said under Section 9 of the Foreign Exchange Management Law, purchases and sales of foreign exchange can be carried out only by foreign exchange dealing licence holders in terms of cash and traveller’s cheques.

Source: The Global New Light of Myanmar

Myanmar traders involved in export and import business are not happy with skyrocketing exchange rates, said Daw Khaing Khaing Nwe, the secretary-general of the UMFCCI in a meeting held at the Central Bank of Myanmar on 19 August to discuss the dramatic decrease of Myanmar currency value against foreign counterparts.
“The current exchange rate practising in grey market is unreasonable and is much more than it should be. Basically, changes in exchange rate may vary depending on the demand and supply, but we cannot accept the current situation of unreasonable rise in exchange rate,” she explained in the meeting.
Meeting participants discussed the factors that contribute to skyrocketing exchange rate, measures to be taken to bring the exchange rate to normal and the opportunities to cooperate between organizations and traders in pursuit of stable exchange rate.
Some importers are taking a privilege to buy US dollars at the rate of K2,920 offered by the Central Bank of Myanmar, but they mark the commodity prices in reference with exchange rate of grey market, making consumers to suffer. The UMFCCI and its partner organizations will collaborate to eradicate such unethical dealing practices, according to the presentations at the meeting. Illegal trading is gaining momentum, prompting exchange rate to rise uncontrollably and special investigation teams are cracking them down, said an official at the meeting.

Source: The Global New Light of Myanmar

IN a proactive move to curb soaring commodity prices, Myanmar is actively engaging in foreign currency
trading within legal markets. This initiative is accompanied by a strategic implementation of interest rate and monetary policies, aligned with the nation’s macroeconomic landscape, as highlighted by Central Bank of Myanmar Governor Daw Than Than Swe. CBM Governor Daw Than Than Swe articulated these measures during a recent meeting held in Nay Pyi Taw’s Office No 55 yesterday. The gathering served as a platform to elucidate and deliberate on issues pertaining to foreign trade payments.

Intending to streamline financial transactions and cater to the market’s foreign currency demand, the
Central Bank of Myanmar has taken several steps to ensure exchange rate stability. These measures
encompass the sale of US dollars to entities involved in the motor oil, edible oil, and import sectors through private banks. Furthermore, the institution is harnessing the Back-to- Back SWAP Facility to meet the escalating demand for US dollars.

In a bid to enhance accessibility for importers seeking foreign currency, the CBM Governor underscored
the introduction of an online trading system on 22 June 2023. She also emphasized the establishment of
transparent criteria for fair online trade, reassuring that transactions meeting these criteria will be facilitated. Addressing concerns surrounding foreign exchange rates, she stressed the need for vigilance against the influence of online and social media narratives that might drive unwarranted price hikes and illegal activities, which are not grounded in market fundamentals and data. Subsequently, the delegates at the meeting placed significant emphasis on active participation in online trading, devising comprehensive strategies to stabilize commodity prices, and addressing situations where goods prices surge due to illicit trading practices. The discussions also revolved around topics such as facilitating access to export earnings under stipulated conditions, bolstering trade financing, curbing smuggling, and eradicating illegal trade, all aimed at achieving price stability in the commodities market.

Source: The Global New Light of Myanmar

PACT Global Microfinance Fund (PGMF), an international nongovernmental organization (INGO) has
failed to transform into a company in time and so their microfinance business activities will be suspended and the liquidation processes will be proceeded, according to the statement released by Microfinance Business Supervisory Committee of the Ministry of Planning and Finance on Thursday. The proposal to do such action was submitted to the committee on 11-7-2023 and the committee will carry out that case as per the provisions of Microfinance Business Law.

The committee granted microfinance business licences to the local and foreign companies, partnership firms, INGOs and NGOs that register under the Myanmar Companies Law, Registration of Associations Law under Section 13 of 2011 Microfinance Business Law (Pyidaungsu Hluttaw Law No 13/2011) by reviewing them. The US Delaware-based INGO called Pact Global Microfinance Fund (PGMF) made registration as an INGO at the Ministry of Home Affairs in 2012 and applied for a work licence to provide microfinance services at Microfinance Business Supervisory Committee. The committee granted a permit with business licence No 0022/2012 on 22-6-2012. Under Registration of Associations Law 2014 and 2022, the organizations that register as INGOs and NGOs and seek business licences are not allowed to operate financial businesses.

Therefore, the committee instructed the INGOs and NGOs to transform into cooperating entities in 2018, the statement said. A total of 180 microfinance organizations provide microfinance services to over 4.496 million members in 267 townships, 2,308 wards and 27,773 villages of 15 regions/states with microfinance business licences in Myanmar until May 2023. Currently, 179 microfinance organizations that receive licences from the committee offer microfinance services across the nation.

Source: The Global New Light of Myanmar

PACT Global Microfinance Fund (PGMF), an international nongovernmental organization (INGO) has
failed to transform into a company in time and so their microfinance business activities will be suspended and the liquidation processes will be proceeded, according to the statement released by Microfinance Business Supervisory Committee of the Ministry of Planning and Finance on Thursday. The proposal to do such action was submitted to the committee on 11-7-2023 and the committee will carry out that case as per the provisions of Microfinance Business Law. The committee granted microfinance business licences to the local and foreign companies, partnership firms, INGOs and NGOs that register under the Myanmar Companies Law, Registration of Associations Law under Section 13 of 2011 Microfinance Business Law (Pyidaungsu Hluttaw Law No 13/2011) by reviewing them. The US Delaware-based INGO called Pact Global Microfinance Fund (PGMF) made registration as an INGO at the Ministry of Home Affairs in 2012 and applied for a work licence to provide microfinance services at Microfinance Business Supervisory Committee.

The committee granted a permit with business licence No 0022/2012 on 22-6-2012. Under Registration of Associations Law 2014 and 2022, the organizations that register as INGOs and NGOs and seek business licences are not allowed to operate financial businesses. Therefore, the committee instructed the INGOs and NGOs to transform into cooperating entities in 2018, the statement said. A total of 180 microfinance organizations provide microfinance services to over 4.496 million members in 267 townships, 2,308 wards and 27,773 villages of 15 regions/states with microfinance business licences in Myanmar until May 2023. Currently, 179 microfinance organizations that receive licences from the committee offer microfinance services across the nation.

Source: The Global New Light of Myanmar

The Fisheries Department issued a notice regarding the launch of the Myanmar-Singapore international undersea cable connection project in the Myanmar Exclusive Economic Zone (EEZ). The project is set to span over five months, during which time ships, vessels, fishing boats, and motor boats are strictly prohibited from passing through or anchoring, fishing, and deploying fishing devices in the designated project areas.
The cable connection project will utilize the CS Nusantara Explorer, owned by Campana Mythic Co Ltd, at the Unit 1 location with Rov cables in the Myanmar EEZ. The project commenced on 13 July and is expected to conclude in December.
Campana Mythic Co Ltd, a multinational data network infrastructure operator headquartered in Singapore, was established in 2014. The company boasts an extensive network and infrastructure in Myanmar, Singapore, and Thailand.
To ensure smooth execution and avoid any delays during the project period in the Myanmar EEZ, the Notice to Mariners has been promptly released.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar will issue a new type of “twenty-thousand-kyat” banknote starting from
31 July 2023, and in commemoration of the completion of the Maravijaya Buddha Image, which was built to show the brightness of the Theravada Buddhism firmly shining in Myanmar, for Myanmar to be a focal point of Theravada Buddhism and to bring peace to the country and the world, and in celebration of the one-year birthday of a white elephant, “Rattha Nandaka,” born on 23 July 2022. Such a banknote will be issued in a limited number and will be distributed only by exchange of the same value with various types of old banknotes that should not be appropriate for circulation in Myanmar. Initially, old banknotes will be exchanged for “equal value” at the Central Bank of Myanmar in Nay Pyi Taw, the Yangon branch, and the Mandalay branch. Current valid currency notes and changes will continue to stand as official currency.

Source: The Global New Light of Myanmar