CNI News

19 December 2023

As India has fixed the price of its onion when exporting not to sell at the price below 800 rupees per ton, the price of Myanmar onion also has increased, according to onion traders. 

Because India is the country that is exporting most to Bangladesh and ASEAN countries, its fixation of the price made the Myanmar onion increase, said the traders. 

Because the price of Indian onion has increased, the countries that buy onion have bought Myanmar onion more.

Myanmar onion prices will remain high until March 2024 because of India's price fixation, U Aung Myint, an onion trader from the Myingyan onion wholesale center, told CNI News.

" India has fixed its free on board (FOB) price of its onion not to sell at the price below 800 rupees per ton. And then, the prices have become higher there. So, if Myanmar can sell at the lower price than India, buyers will buy all the Myanmar onion. As India's FOB price is about 4,800 kyats per viss, the price will be between 5,500 and 6,000 kyats in the Philippines, Vietnam and Thailand due to transportation charges. Unless India lowers the price, the price of onion will never decline." said U Aung Myint.

Trucks carrying onions

Over 100,000 visses (360,000 lb) are entering the Myingyan onion wholesale center each day and the amount of onion bought to export is almost the same as that of entrance reportedly. However, it is difficult to export through China-Myanmar border trade, Myanmar Thailand border trade and Rakhine-Bangladesh border trade.

Exporters have to be shipping by sea and due to high cost, the prices of onion are declining a bit. Moreover, the quality also was declining because of suffering the bad weather, U Kyaw Thaung, an onion trader from Myingyan, told CNI News.

" Myanmar onion can be sold at the price above 4,000 kyats per viss in a normal situation. If India sell at 4,800, we can also sell at that price. But the transportation charges have been higher. Without the ability to use normal routes, because we have to use other routes, transportation charges have been higher. So, traders can't buy at a higher price. Now Myanmar onions are declining in qualiuty due to bad weather. In fact, the onion with a good quality like Myitthar can be paid at 4,000. Now we can't use Myawady border trade. We have to use other routes. Myanmar onions are being bought by the Philippines, Malaysia and Thailand. Bangladesh also buying Myanmar onions at the FOB price at Yangon Port, I think." he said.

The demand for onion in the domestic market is on the rise and old summer onion prices are between 3,200 and 3,400 kyats per viss at the Myingyan and Pakokku wholesale centers and new rain onion prices are between 2,300 and 2,700 kyats per viss reportedly.

Myanmar onions are being exported to Thailand, Vietnam, Lao, Malaysia and Bangladesh. Moreover, the Philippines is buying Myanmar onion with G to G system.

CNI News
17 December 2023

Plans are being made to lend 400,000 kyats per acre to farmers who own 10 acres and above as a short term loan, according to the Myanmar Rice Federation.

The MRF had a coordination meeting with those in charge from the Myanmar Agricultural Development Bank, the Myanmar Economic Bank, the KBZ Bank, the A Bank, the AYA Bank and the UAB Bank and loans will be issued to farmers with form (7) guarantee reportedly.

Not only the farmers who own 10 acres and above, the farmers who own under 10 acres should also be lent, U Thein Aung, chairman of the Farmers Development Association, told CNI News.

" If the farmers who own 10 acres and above are lent, it doesn't kind of care the farmers with a few acres. Among the five points of protection of farmers' rights and promotion of interests, the final point is to give priority to the farmers with a few acres. In fact, the farmers with a few acres are largely lack of capital because they find it difficult to make ends meet. If possible, it would be better if they were lent." he said.

the Myanmar Rice Federation 

It was the first time that MRF had planned to lend the farmers and the loan amount would be supportive to the farmers, said farmers. Because summer paddy is being grown in some regions, only if the loans are issued before January, will it be convenient for the farmers, suggested the farmers.

The loan is only for the development of agricultural production in the areas where summer paddy is grown in Ayeyarwady, Bago, Yangon, Mandalay Regions and Naypyidaw Council area.

However, Sagaing Region and Rakhine State are not included in the places that the loan will be issued. It was probably because of instabilities in those regions, Ko Zaw Min Naing, an agricultural and economic advisor, told CNI News.

While seeing farmers

" The farmers in the regions supposed stabler in comparison with other regions are lent, I think. Although around Shwebo area is grown paddy, armed conflicts are severely taking place. Moreover, the number of people who grow paddy has declined. And banks don't seem to accept to lend the farmers in those regions because they have to take a lot of risk. Because the battles are breaking out in Rakhine State, the banks seem to have decided not to lend the farmers in the state." said Ko Zaw Min Naing.

The MRF and the banks had a negotiation meeting to lend for 100,000 acres as the pilot project.

Because the farmers are finding it to buy fuel at present, the MRF is planning to enable the farmers to buy fuel and fertilizer sufficiently at lower prices reportedly.

CNI News
17 December 2023

In spite of having to exchange 50 percent of the export earnings to Myanmar kyats at the price designated by the Central Bank of Myanmar in the past, only 35 percent must be exchanged at present.

So, the export sector will improve, said traders.

Relaxation of export policy like that would make the export sector better, U Thant Zin Tun, vice chairman of the Myanmar Corn Industrial Association, told CNI News.

" It's better. 65 percent of the export earnings is spent for import and 35 percent must be exchanged to Myanmar kyats. There will be further relaxations. But the government hasn't announced it officially. Exports will be able to be exported more." he said.

While seeing trucks loaded with watermelons heading to China

Exporters of rice, bean and corn have been currently allowed to import fuel by the Ministry of Commerce. In the same way, exporters of rubber have been allowed to import necessary products and fertilizer reportedly.

Exporters have earned more and more profits after the export policy was relaxed, an official from the Myanmar Rice and Paddy Traders Association, told CNI News.

" Exports will increase a bit and so will rice. Because more foreign currency is earned, exporters have increased a bit. Our reserve supply of rice has dwindled a bit.
When the new rice comes out, they give priority to export because they earn more export earnings. At the same time, domestic rice prices have gone up a bit." he said.

Because the policy relating to export earnings has been relaxed, the prices of bean, pea, rice and corn have gone up a little in the domestic market, said farmers. However, due to rising transportation costs, ‌only a little profit has been earned and there were various prices depending on region, Ko Min Khaing, a corn farmer from Ayeyarwady Region, told CNI News.

While preparations are being made to export rice

" The current price is about 1,100 kyats per viss and the price of corn has increased by 10 to 15 kyats per viss (one viss=3.6 pound). Transportation charges also increase due to rising fuel prices. So, it doesn't make any difference to farmers up to now. The freight cost depends on the distance. The cost of transportation is from 30 to 100 kyats per viss." said Ko Min Khaing.

In recognition of entrepreneurs who are making efforts to improve exports, they have been allowed to import to an extent, according to the Ministry of Commerce.

Local exporters are working to export local products to foreign markets on time and due to the ongoing armed conflicts on the border trade route, they are making preparations to export goods by sea.

CNI News
16 December 2023

The Hnownbu and the Tron I Byuhar Hills are strategically important to the security and economy of Myanmar, said political and military analysts.

The Arakan Army (AA) stated that it captured the Tron I Byuhar Hill on 4th December, and Hnownbu Byuhar Hill on 10th december, military bases of the Tatmadaw.

The bases are located in Paletwa Township, Chin State and they are on a strategic path that can trade with India and Bangladesh. The Tatmadaw had strongly built those bases and the AA might have lost to an extent, Dr. Aye Maung, chairman of the Arakan Front Party (AFP) told CNI News.

" The AA might have paid a lot in order to capture the Tron I and Hnownbu bases. It looks like many lives have been paid. It was also reported that a military strategist from the Tatmadaw. The bases can also become big killing fields. It is very dangerous to the AA. It is necessary to negotiate at a time like this. Senior officials will have to think about it." he said.

Paletwa Town

The importance of the two bases is that they are the places to control the Kaladan Project of Myanmar and India. Because of its ability to capture these bases, the AA was able to control the project, U Than Soe Naing, a Myanmar political commentator, told CNI News.

" These bases have controlled the Kaladan River Project. The AA has already captured these bases, so it has been able to control the project. In order to implement India's eastern leaning policy, the two bases are important. Now that the AA has captured the bases, the military council has nothing to carry out the projects with India." he said.

However, because the Tatmadaw will launch a counter offensive to recapture the bases, it will be difficult for the AA to control the bases for long, said military analysts.

While seein Tron I Village along the Kaladan River

" The military bases that the AA has captured are the places that can control the border areas with India and Bangladesh including Kaladan and Paletwa. In other words, the bases have controlled all the roads going to northern India. But later, negotiation might be needed for the AA. If the Three Brotherhood Alliance negotiation with the Tatmadaw in northern Shan State was convenient for the AA and the Ta'ang National Liberation Army (TNLA), a bilateral agreement relating Paletwa region containing border areas with India and Bangladesh might arise." said Dr.Aye Maung.

The battles between the Tatmadaw and the AA resumed on 13th November. And then the battles spread to Paletwa Township, Chin State.

At present, the battles are breaking out between the Tatmadaw and the AA in Sittwe, Kyauk Phyu, Ranbye, Myebon, Taung Goat, Thandwe, Maungdaw, Buthidaung, Rathedaung, Kyauktaw, Pauktaw, Minbya, Mrauk U, Ponnagyun Townships in Rakhine State as well as in Paletwa Township, Chin State.

CNI News

16 December 2023

Revolutionary forces would go until they reach the goal, combining Spring Revolution with the Operation-1027 that was being waged by the Three Brotherhood Alliance (MNDAA, TNLA and AA), U Than Soe Naing, a Myanmar political commentator, told CNI News.

The National Solidarity and Peacemaking Negotiation Committee (NSPNC) of the State Administration Council held talks with the Three Brotherhood Alliance in Kunming, China through the Chinese mediation to stop battles a few days ago.

Three Brotherhood Alliance stated on 12th December that it would carry out in cooperation with the entire people until they reach the common goal. According to the statement released by the Three Brotherhood Alliance, they had kept their promise that they would take part in the Spring Revolution to the end, U Than Soe Naing told CNI News.

While showing that Chin Shwe Hao town has been controlled by the MNDAA

" The Three Brotherhood Alliance will combine their operation-1027 with the Spring Revolution and because they have confirmed again that they will take part in attempts to eradicate the military dictatorship until they reach the goal. So, we have understood that the public has nothing to worry about the rumors and news that emerged. It's an effective step politically." he said.

The battles have been breaking out between the Tatmadaw and the Three Brotherhood Alliance in northern Shan State since the Operation-1027 was launched by the Three Brotherhood Alliance on 27th October.

The Bamar People Liberation Army (BPLA) and the Mandalay People's Defense Force (MDY-PDF) also have participated in the Operation-1027.  

While seeing comrades from the BPLA

However, if the Tatmadaw used its reserve forces, the Three Brotherhood Alliance's troops would retreat, Dr.Aung Myo, a Myanmar political commentator, told CNI News.

" They must say that it is a common goal because the TNLA and the AA had to attack the Tatmadaw in Theinni, Naunghkio and Lashio to cut the path so that the MNDAA could capture Chin Shwe Haw and Kunlong. When the MNDAA achieves his goal, it cannot say that it will no longer participate. It must say so ethically. In fact, the Tatmadaw has not yet used strategic reserve forces. I don't know why. If the Tatmadaw use them, the Three Brotherhood Alliance will retreat." said Dr.Aung Myo.

Due to the Three Brotherhood Alliance's operation, the battles have been breaking out severely since 27th October and there are heavy weapons fire and airstrikes.

CNI News
16 December 2023

when the Kachin Independence Army (KIA) started raiding Tarlawgyi Village, Myitkyina Township, Kachin State, where Shanni nationalities live on 5:00 a.m on 15th December, it was fighting against the Lisu Militia.

While the KIA has raided the village, it was fighting, using Shanni people as human shield without letting them leave the village, the Shanni Nationalities Unity Association (SNUA) stated.

And then, the Tatmadaw from Myitkyina also was fighting against the KIA with heavy weapons and airstrikes, and heavy weapon rounds were falling and exploding near the village, said in the statement.

The KIA force

" The KIA, Lisu militia and the military council taking part in the armed conflict need to pay respect to the international humanitarian law (IHL) and the international human rights law (IHRL), and we demand the KIA, Lisu militia and the military council not to fight, using Shanni people as human shield, deploying in the buildings where Shanni people live, schools, hospitals and religious buildings, and not to attack these places as military targets and to let the Shanni people leave for safety " said in the statement.

Tarlawgyi is a historical village where the Shanni people have lived for generations and it is a village that has repeatedly been forcibly recruited by the KIA as well. There is much concern that there will be incidents of human rights violations during the current armed conflict and all the situations will be monitored and recorded, said the SNUA on 15th December.

According the 2014 census-taking, there were 3,410 men and 3,469 women in Tarlawgyi Village.

CNI News

15 December 2023

More and more financial frauds have increased among Myanmar citizens in Malaysia, those who are helping Myanmar people there told CNI News. 

Scammers are mainly lying in the matters relating to employment and evidence documents, U Barbu Gyi, a person helping in the affairs of Myanmar citizens, told CNI News.

" Many financial frauds are taking place in Malaysia. Mainly, It is Myanmar people who are causing trouble to other Myanmar people. Some Myanmar people call other Myanmar people, saying that they would get jobs. And then, they are put in one place together. And then, they are made to ask money from Myanmar. It's like kidnapping. They are doing like rogues." he said.

This is because Myanmar people are very gullible and act without considering the possibility or impossibility of a matter, pointed out the people helping in the affairs of Myanmar citizens.

While seeing Myanmar migrant workers

Because employments have been currently scarce in Malaysia and difficulties have arisen, financial frauds probably have increased.

Because the jobs are scarce at present, scammers take the victims to a place after asking 500 to 1,000 ringgits, saying where there are jobs. But when the victims arrived there, there is no job. They get into trouble. If you have a passport, you can apply for a work permit. 

“Scammers forge passports and lie, asking 1,500 to 3,000 ringgits. Soon after the Covid-19 pandemic, new labors were needed. Anyone was employed. But After a new government took power, new labors are recruited according to only G2G agreement. 

Especially, labors from Bangladesh, Nepal, Indonesia and the Philippines are recruited, but Myanmar workers are not included. There, those who with work permits get jobs. Most Myanmar workers without the permits have been jobless." said U Nyi Nyi Lwin, director of the Center for Arakan Refugees, to CNI News.

While seeing Myanmar migrant workers

Arrests have increased than before in Malaysia, according to the people helping Myanmar people. Moreover, because a lot of the Covid-19 infections has also significantly reoccurred in the last few days, Malaysian Ministry of Health has requested to resume Covid-19 protective measures.

So, Myanmar workers in Malaysia should follow the Covid-19 protective measures, suggested the people who are helping in the affairs of Myanmar citizens in Malaysia.

CNI News

15 December 2023

Myanmar embassies in South Korea and Singapore have stated that when Myanmar expatriates renew their passports at the embassy concerned, they must pay the income tax at the same time. 

The Myanmar Embassy in South Korea has stated that Myanmar expatriates holding PJ (passport for job) holders and PB (passport for business) holders who will renew or have already renewed their passports could pay the income tax for the periods that they wanted to pay.

" A passport is essential to you when you are in a foreign country. People are not very satisfied when they have to pay the income tax suddenly. They are not satisfied with the one-sided statement that was released without study and inquiry in advance. But the passport is essential. They need to renew their passports. They must hold the passports. Only if they have the passports, will they get visas. They have to pay the income tax every six months. They have to pay 32,000 or 33,000 wons for a month as the income tax, I think but I'm not sure. Anyone doesn't come to the embassy separately to pay the income tax." said Ko Khant Nay Kyi, in charge of the center for supporting migrant workers in Busan, to CNI News.

Myanmar Embassy in South Korea

Myanmar embassy in Singapore has been collecting the income tax from Myanmar nationals there since 12th December and only if they have already paid the income tax, will they be able to renew their passports and to carry out other cases, said the statement. 

If Student Pass holders can submit a letter of proof that they are currently attending school, they will be exempted from income tax. Moreover, if taxpayers' spouses, parents and children can present a household list, birth certificate and marriage contracts, they can extend as dependents.

Those who will go back to Myanmar will need to bring letters of recommendation that they have already paid the income tax or that they are dependents or students, said in the statement released by Myanmar Embassy. 

So, Myanmar embassies in other countries will issue statements to ask income tax, said the people helping Myanmar migrant workers.

However, some Myanmar migrant workers are working in Thailand with their passports while others are working without passports but with other documents. So, those with passports are asked to pay the income tax and those without passports probably will be collected in another form, U Min Oo, in charge of labor affairs from the Foundation for Education and Development (FED), told CNI News.

While seeing Myanmar migrant workers

" Baht pink cards which allow you to stay and work are attached to CI (certificate of identity). CI must be applied up to now. CI is issued by the Myanmar government. So, Myanmar citizens need to pay the income tax. If you can stay and work with the documents Thai authorities have issued, you might not pay the income tax. Migrant workers demanded to get a pink card or work permit not very long ago, saying that it would be convenient for them if they had those cards." he said.

U Myint Naung, Union Minister for Labor, explained to Myanmar migrant workers about remittance of 25 percent of the salary to their families in Myanmar and paying 2 percent of the income as the income tax when he met with Myanmar migrant workers in Thailand on 9th December Myanmar migrant workers have to pay the 2 percent of the basic salary to the government as the income tax. 

Moreover, if you renew your PJ (passport for job) and PS (Passport for seaman) or apply for a new passport, you will need to present a certificate of tax clearance in Myanmar, according to the department of internal revenue.

CNI News

15 December 2023

According to the budget information released by the Ministry of Planning and Finance of the State Administration Council in October, the budget deficit is about eight billion kyats for the 2023-2024 fiscal year. 

Although there is an annual budget deficit every year, the budget deficit of this year may be more than those of previous years, said business people.

This year, military spending is already rising due to armed conflicts and the government's tax revenue would decrease, pointed out economic commentators.

The action of the central bank to fill the budget deficit must be monitored and the government might counter the budget deficit by collecting tax from expatriate workers and collecting increased taxes from local entrepreneurs, U Thet Zaw, an economic commentator, told CNI News.

" There are many ways to fill the shortage of money.  The government can raise taxes. Now it is collecting tax from Myanmar expatriate workers. It should be done as well. But instabilities affect production. The ability to pay taxes is reduced. That's something you should think about. Another thing is to watch how the Central Bank will supply." he said.

While people are waiting in line to buy fuel

The China-Myanmar border trade has almost been suspended for over a month due to the battles breaking out in northern Shan State. Therefore, businessmen point out that there may be a deficit in trade as well. 

According to a statement released by the Ministry of Commerce, there has already been a trade deficit because the volume of imports is greater than exports in the China-Myanmar border trade this year in comparison with the same period last year. 

Despite being able to export goods worth more than 1,543 million US dollars from April to 1st December of the 2022-23 budget year, Myanmar was able to export goods worth 1,430 million US dollars only during the same period of the 2023-24 budget year. 

However,Although Myanmar imported goods worth 277 million US dollars during the same period in 2022, the goods worth 988 million US dollars were imported this year, according to the Ministry of Commerce. 

Trade deficit caused the demand for foreign currency. So, difficulties relating to the fuel which is imported from abroad have arisen in the country, pointed out businessmen.

So, the government was carrying out a plan to put the foreign currencies which have illegally arrived in Myanmar into legal accounts, an anonymous businessman told CNI News.

While seeing an armed force

" The main problem that has resulted from the trade deficit is the fuel crisis. When the foreign currency is in demand, as the Central Bank can't sell the US dollar, it's been difficult in the fuel business. We need foreign currencies on the list that can be legally accepted. But all the dollars that you have cannot be remitted to a Singaporean Bank because there are accounts that are banned or blacklisted. There is black money in every country. Mainly, it's a bit difficult for payment if trade has not been legally done. We need to send a lot of dollars to Singapore so that we can buy things with accounts." he said.

For example, if goods worth 100,000 dollars were exported, fuel worth 100,000 dollars could be bought, he explained.

" For example, Myanmar has exported goods worth 100,000 dollars, fuel worth 100,000 dollars can be imported from abroad. There are dollars earned illegally not through official trade. You cannot put these dollars in the market. They are the money the government has controlled. As it would be convenient if there are exports, it's necessary to buy exports a lot. Buying a lot of exports is not because of wanting money but to get legal money." he added.

Successive governments often counter the budget deficit by borrowing from the Central Bank, selling Treasury bonds as well as borrowing from abroad. Although there are trade deficits and budget deficits every year, they have not reached a serious situation. 
However, it might be difficult to import goods from abroad if the budget deficit comes to increase.

If it is difficult to import the fuel that the public essentially has to be using, the commodity prices surely will rise. So, the government needs to systematically settle the problem, said economic commentators.