CNI News

22 July 2022

Sales in restaurants fell recently and profits were dwindled due to shortages and rising prices of gas for cooking, according to restaurant owners.

Restaurant owners, who have to rely on gas for cooking, are running their businesses without any profits due to rising gas and commodity prices, the owner of Linletkyal Fried Noodles Restaurant in Bahan Township told the CNI.

“Previously, we bought cooking gas at K 33,000 or K 35,000 per cylinder. Now, gas prices have risen by K 25,000 to K 55,000 per cylinder. As gas and foodstuffs are getting expensive, we cannot get profits. I have to rent the restaurant and pay staff salaries. I earn just enough money for the rent, the salaries and food for us.,” he said.

While gas prices have increased by more than K 20,000, some shops are selling gas under the rationing system.

Although some restaurants turned to electric stoves, they faced other problems like blackouts, rising electricity bills.

If gas prices rise further, restaurant businesses will have to face shutdowns, according to the owner of Lin Let Kyal noodles restaurant.

Gas cylinders in a gas station.

“If gas prices rise to K 60,000, K 70,000 or K 80,000, restaurants will not be able to afford it. Some restaurant owners use charcoal. Otherwise, their businesses will come to halt,” he told the CNI.

Moreover, fuel prices are also rising and commodity prices increased due to transportation charges, pushing up food prices.

With rising food prices, the number of patrons at restaurants has dropped and sales dropped, Chairman U Nay Lin of Restaurant Entrepreneurs Association told the CNI.

“We have to increase the prices of dishes at a time like this because restaurant owners can no longer suffer the losses. So, dishes that were sold at K 6,000 per serving may rise to K 7,000 or K 8,000. Finally, customers bare the brunt of the rising prices but they will be disappointed when they have to pay K 8,000 for what they usually ate at K 5,000 in the past. This caused difficulties for some. As a result, the number of customers at restaurants dropped. Every restaurant has faced the same problems,” he said.

Due to rising prices of US dollar against the Kyat, companies cannot import gas from Thailand and halted imports, leading to the rise of gas prices.

Restaurant owners pointed out that it is necessary to maintain currency price stability and fall in the prices of commodities to overcome the difficulties.

CNI News

20 July 2022

The rumour that no one has the right to possess foreign currencies such as US dollars, Euros, Yens and Singapore dollars except the government was not true and authorities are taking action against those who spread the fake news, Deputy Governor U Win Thaw of the Central Bank of Myanmar told the CNI.

“The fake news report has gone viral and market exchange rates have risen. It was not a statement issued by the CBM. Someone spread fake news reports to undermine the financial sector. The Ministry of Home Affairs is tracking the person who first spread the fake news report to take action against him. It was a fake news report and just an act of sabotage aiming at the creation of confusion among the public and chaos in the financial sector. We have seen the source that first fabricated the news report and the Ministry of Home Affairs is taking necessary action,” he said.

Fake news about possessing foreign currencies.

Fake news reports have spread on social media that no one has the right to possess foreign currencies including US dollars, Euros, Yens and Singapore dollars except the government in the Republic of the Union of Myanmar and action would be taken against those who possess them in accordance with the banking and financial laws.

Moreover, the reports said that jail terms and fines will be imposed on them based on prevailing prices to control the financial flows to illegal organizations.

It was also stated in the fake news reports that the FEC system equivalent to the US dollar would be adopted again at the end of 2022 and border trade with neighbouring countries would be carried out in Yuan, Rupee, Baht and Ruble.

The Ministry of Home Affairs is taking measures to take action against the news source.

Economists said that some people are taking advantage of political instability, economic crisis and rising market rates of US dollar in Myanmar to spread fake news.

CNI News

20 July 2022

Shan State Progressive Party spokesman Major Sai Phone Hon of SSPP/SSA told the CNI that they would take the peace issue into consideration only after territorial disputes in Monghsu Township in Shan State (South) had been settled.

Military tensions were mounting before the peace talks and if all were desirous of peace, there would be none of such problems, he said.

Maj Sai Phone Hon told the CNI, “ We will have to decide the next step to take after resolving the disputes because it was a stumbling block. As the tensions have been mounting before the peace process, we will have to say that there wouldn’t be any of such problems if all stakeholders were moving toward genuine peace.There would be no such problems if everyone was desirous of peace.”

Locations of the three posts the Tatmadaw has asked the SSPP to withdraw.

However, the withdrawal of troops in the disputed areas would be decided only after negotiations with the Tatmadaw and he couldn’t say anything about the issue officially.

On 14th July, the delegations led by Lt-Gen Yar Pyae and SSPP Vice Chairman -2 Maj-Gen Khu Sai met at Mongnaung in Shan State (North) and the former told the latter to withdraw troops from the posts they had occupied within seven days.

Maj Sai Phone Hon said that the Tatmadaw should not impose a precondition for peace talks if it really was desirous of peace, raising the question for the demand to withdraw troops.

The letter sent by the Tatmadaw to the SSPP

“Peace talks are held when there are tensions, but imposing preconditions is not a solution. If there are issues that must be resolved before the talks, we must settle them first so that we can move forwards smoothly. We believe that these will be minor issues that don't matter if the policy for peace in the entire country has been adopted. Actually,It is necessary for the media to ask the Tatmadaw why it raised the issues, which are not made by us. So, we don’t have much to talk about and advise the media to ask the Tatmadaw about them on behalf of the public,” he said.

The Tatmadaw demanded the SSPP to withdraw three posts of it at Loinoi and Manwain in Monghsu Township by 10th June on 4th June and by 30 June on for the second time but the SSPP refused to do so until now.

As tensions have mounted, representatives of the both sides met on 14 July but the Tatmadaw has still demanded the SSPP to withdraw troops from the posts.

CNI News

21 July 2022

Although more than one million migrant workers in Thailand including Myanmar will be permitted to work there until 13th February 2025, illegal workers will not be able to enjoy the same right, labour activists for Myanmar workers told the CNI.

Migrant workers who have been permitted to officially stay and work in Thailand until 13 February 2025 are those who have temporary work permits ( pink certificates), work permits (blue certificates) and the CI and MOU documents.

Thailand announced that temporary work permits (pink certificates) would be issued for illegal workers, the plan has not been approved by the government so far.

Labour affairs in charge U Min Oo told the CNI, “ They ( Thai government) already have had plans for illegal workers. I think they issued the announcement on 5th July to force all eligible workers to register with the government. It meant that they would renew the terms for workers who had work permits. However, those who have work permits fall into various classifications, according to the decisions made by the cabinet and the terms of their work permits are different. So, they wanted to set the same target for all in 2025. They aimed to set the same terms for all migrant workers.”

However, Ko Thargyi told the CNI that temporary work permits were not issued for all illegal workers in the past.

“Whenever it was announced that official work permits would be issued for illegal workers, a lot of people enter Thailand illegally but they had to pay money for illegal immigration and were cheated. I have not found any official documents issued to illegal workers,” he said.

In renewing the official work permits to stay and work in Thailand, migrant workers who have been permitted to do so in Thailand until 1st August, 2022 are required to renew their permits that are valid until 13th February 2025 before the expiry of their current permits.

The second group, whose permits expire on 1st August, 2022, are required to renew their permits once a year until 13th February, 2025.

Although it was good for more than one million immigrant workers to be allowed to stay and work in Thailand until 2025, they would not be staying in Thailand free of charge, according to U Min Oo, the in charge of labour from the FED.

“Anyway, there are consequences for workers, who have to satisfy the needs of agencies and employers in terms of costs and pay as much as required in accordance with the statements. However, it is good for workers to have more job opportunities for the workforce,” he said.

The Thai government has to extend the terms of migrant workers due to  the shortage of labour in Thailand for the first time, according to U Min Oo.

CNI News

21 July 2022

As rice exports came to a halt recently, supply of the crop to Bayint Naung Commodity Exchange was low, according to the commodity exchange.

Currently, rice exports have halted completely and demand for rice is very low. Recently, rice was traded for domestic consumption, Tatmadaw rations and other organizations, Secretary U Than Oo of Bayint Naung Commodity Exchange told the CNI.

“As exporters have stopped buying rice, traders have to purchase rice at lower prices. So, it is not profitable for merchants in small towns who store rice for the market and as they cannot sell their rice at lower prices. Another factor is paddy has not been harvested at this time of the year in most areas except Mandalay and Madaya. Recently, we could sell rice for domestic consumption, rations for the Tatmadaw and the WFP. Exporters have stopped purchasing rice,” he said.

As the Central Bank of Myanmar has set the exchange rate at K 1,850 per US dollar, exporters suffered losses and stopped rice exports.

The processing of paddy.

Therefore, rice supply to Bayint Naung Commodity Exchange decreased to one-third of its usual volumes, according to U Than Oo.

“About 70,000 to 80,000 bags of rice were usually transported to Bayint Naung Commodity Exchange every day but the supply volumes dropped to 20,000 to 25,000 bags a day or about only one-third of usual volumes. Millers, wealthy farmers and dealers have not sold their rice to get more profits when the prices rise again. There is no rice in the hands of small farmers. As the harvest has started in Madaya, farmers there may have paddy in their hands. In other places, rice is held by people who are waiting for higher prices,” he told the CNI.

Maritime exports of rice have halted due to the gap between the official exchange rate and the market rates, but traders are still exporting rice at the border trade.

Rice exports through the border trade are still surviving as rice was traded not in US dollar but in Yuan there, Vice Chairman U Min Thein of Muse Rice Commodity Exchange told the CNI.

“We mainly exported broken rice to China and only a little rice. As the rice and broken rice trading is carried out not in US dollar but in Yuan, the border trade of rice and broken rice is carried out in Yuan, it was not seriously affected by the exchange rate set by the CBM. However, those who exported rice through the maritime trade suffered losses due to the gap between the official exchange rate of 1,850 per US dollar and market rates. We have not suffered the consequences as we exported rice in Yuan but those who exported rice through the maritime trade suffered losses because they traded in US dollars. So, they have stopped buying rice for exports. So, merchants from small towns cannot sell rice at lower prices and the demand is very low,” he said.

Rice exported to other countries was 25 marks rice and the price was as high as K 30,000 per bag but exporters could not offer more than K 28,000 per bag to export rice to other countries.

However, millers and farmers cannot sell rice to them at the lower prices and only a few of them who were short of cash sold rice to exporters at a loss, according to the commodity exchange.

 CNI News 

20 July 2022

 A statement claiming to have formed the Kaw Thoo Lei Army by Maj-Gen Saw Nerdah Mya, who was dismissed from the post of the chief of staff of the Karen National Defence Organization (KNDO), on 17th July 2022 was circulated on social media.

 The statement was also signed by Saw Win Myint, a commander of the Venom Commando column.

 The statement said that the KNDO led by current chief of staff Maj-Gen Saw Shee Lei is one of the signatories of the Nationwide Ceasefire Agreement and in a difficult position to lead movements of the entire people.

 Therefore, the Kaw Thoo Lei Army was formed under the leadership of Maj-Gen Saw Nerdah Mya on 17th July 2022, the statement said. 

The statement added that the Kaw Thoo Lei Army stands as a people's army of Karen ethnic group and will eliminate the State Administration Council until the victory of the revolution has been achieved without following the orders of the organization  under the SAC. 

Maj-Gen Saw Nerdah Mya and Captain Salone.

In the statement, Venom Commando column announced that it joined the Kaw Thoo Lei Army as of 17th July and requested the public to support the Kaw Thoo Lei Army instead of NCA signatories with the SAC.

 Venom Commando commander Saw Win Myint reiterated the pledge to defeat the SAC relentlessly without wasting any cent donated by the people.

 The KNDO is the armed wing of the Karen National Union, which signed the NCA on behalf of its armed wings, the KNDO and the Karen National Liberation Army (KNLA). 

The current chief of staff of the KNDO is Maj-Gen Saw Shee Lei and Maj-Gen Saw Nerdah Mya was dismissed from the post on 8th July for his role in the killing of 25 construction workers on 31 May 2021.

 Maj-Gen Saw Nerdah Mya rejected his dismissal. 

Maj-Gen Saw Nerdah Mya and Captain Salone.

The CNI tried to reach Maj-Gen Saw Nerdah Mya for comments on the formation of the Kaw Thoo Lei Army but  he did not answer the phone.

 It was rumoured in the Karen political circle that a new Karen armed organization was likely to be formed and it was said that popularity of the group among the public and on social media was a push for formation of the new group. 

As Maj-Gen Saw Nerdah Mya joined the Spring Revolution and launched offensives against the SAC troops, he was popular among the public and on social media.

 Currently, there are many Karen armed organizations including the KNU, the DKBA and the KNU/KNLA-PC.

 All the groups are factions of the KNU and Col Saw Chit Thu of DKBA also formed another faction callled Border Guard Force and cooperated with the SAC. 

In a similar fashion, about 300 members of the DKBA led by Captain Salone defected in May 2022 and joined with the troops of Maj-Gen Saw Nerdah Mya, who was dismissed by the KNU.

CNI News

20 July 2022

U Cho Aung Than, a nephew of late martyrs Gen. Aung San and U Ba Win, refused to attend the Martyrs’ Day ceremony because he did not recognize the SAC, he told the CNI.

U Cho Aung Than is a son of U Aung Than, an elder brother of Gen. Aung San.

Families of Gen. Aung San and U Ba Win did not attend the 75th Anniversary Martyrs’ Day ceremony organized on 19th July, 2022.

U Cho Aung Than told the CNI, “As I said yesterday, we do not recognize the government. In previous years, a son of U Ba Win and I, as the eldest nephew of Gen. Aung San, attended the ceremonies.”

The organizing committee for the event attended the ceremony and laid wreaths on behalf of the absent families.

Daw Aung San Suu Kyi, the daughter of Gen. Aung San, has been detained by the Tatmadaw after she tried to form a new government without settling voters’ list disputes in the 2020 general election on 1st February 2021 and a state of emergency was declared.

Senior General Min Aung Hlaing attends the 73rd Anniversary of the Martyrs’ Day Ceremony. 

The Tatmadaw formed the SAC to run the country and promised to hand over power to the winning party in the 2023 elections.

U Cho Aung Than said that the SAC was not a legitimate government and no one had voted for them.

“I do not recognize the government. Actually, it is not a legitimate government. I have never voted for them. Last year, authorities came to my house to check whether there were guests at my house. When they saw the flag of the National League of Democracy, they seized it. I will always remember the incident, especially on a day like this,” he told the CNI.

Vice Chairman of the SAC Vice Senior General Soe Win attended the ceremony and laid a wreath at the mausoleum.

Gen. Aung San and colleagues were assassinated at a meeting in the Secretariat in Yangon on 19^th July, 1947.

The day was designated as the Martyrs’ Day and it has been 75 years since the Martyrs’ Day ceremonies were held every year.

CNI News

20 July 2022

Falling fuel prices failed to benefit the agriculture sector, farmers told the CNI.

Farmer U Aung Kyaw Mya, who was currently growing monsoon paddy, told the CNI that  falling fuel prices failed to benefit farmers because of the gaps between company price and market prices.

“We still have to buy fuel at K 2,500 per litre. So, farmers in Rakhine State cannot enjoy the benefits of falling fuel prices. If we can go and buy fuel at companies, we get fuel at cheaper prices. As we have to buy fuel in the market, we cannot get fuel at cheaper prices. Companies cannot sell as much fuel as we need. They can sell only K 20,000 worth of fuel to a car. As we cannot buy as much fuel as we need from companies and we have difficulties,” he said.

Although the drop in fuel prices have no impact on agriculture, transportation costs have fallen, farmer U Ko Ko Lay told the CNI.

Previously, farmers had to pay K 70 per viss for transportation of their goods to towns but now transportation charges have dropped to K 50 per viss.

“Farmers have to transport their crops by using cars. When diesel prices dropped a little, they can save some money for plastic and paper bags used to wrap guavas. We had to buy fuel and fertilizers at higher prices. Now, crops are being harvested and fuel prices dropped when we no longer needed to use them as much as before. So, we cannot enjoy the benefits of falling fuel prices considerably,” he explained.

During the rainy season, some farmers have to halt their agricultural activities and do not need to use as much fuel as before.

However, U Khin Soe, a retired state officer from Mon State Salt Industry Department said that it would be of benefit for farmers if fuel prices continued to fall until summer.

“Farmers, whether they work on agricultural farms or in salt farms, need fuel. Salt farmers have to spend about 20 percent of their production costs on fuel. When fuel prices were higher, they had to spend about 30 to 35 percent of production costs on fuel. The lower the production costs, the higher the profits,” he said.

On 19th July, diesel was sold at K 2,155 per litre while premium diesel was available at K 2,210 per litre. Octane 92 and Octane 95 are distributed at K 1,770 and K 1,830 per litre respectively. Fuel prices have dropped recently.

CNI News

20 July 2022

The instruction of the Central Bank of Myanmar to companies and organizations that received foreign loans to suspend repayments can lose confidence in Myanmar in the international community and affect economic development, according to political and economic analysts.

Foreign investors may see Myanmar as a notoriously unreliable country, political analyst U Ye Tun (Hsipaw) told the CNI.

“As the instruction was issued for private companies, I don’t know how this can affect their businesses but as a country, Myanmar will be regarded as a financially notorious and unreliable country by foreign companies, governments and investors,” he said.

Foreign currencies.

The new monetary policy adopted by the CBM will undermine Myanmar’s ability to receive low interest loans from international banks, according to businessmen.

This will also affect the companies that import goods on loans and lead to shortages of commodities, an economic observer told the CNI.

“The order has an enormous impact that will have various consequences. Companies can get new loans or place new orders for goods after they have repaid loans in time. Such companies may face shortages of goods,” he said.

Business community in Myanmar believed that the new policy to suspend repayments of foreign loans aims to tighten the control over the flow of foreign currencies especially US dollar.

However, an economic analyst said that it was not clear what the aim of the CBM was and it was likely that the CBM will ease the control again.

People walking in Yangon.

“We don’t know the aim of the policy of the CBM. It is not clear whether they want to control the outflow of US dollar or they just want to study the amount of the outflow. It depends on their aim. In the past, they cut off the outflow of US dollar and then measures were taken to ease the control gradually. I think they will ease the control for companies and organizations that really need to repay loans,” he told the CNI.

After the CBM issued the new foreign loan policy, the Kyat currency fell against US dollar from K 2,200 to K 2,300 per US$, causing gold and car prices to jump up.

The order issued by the CBM on 13 July instructed banks that have authorized dealer licenses to make necessary negotiations for their customers’ repayment schedules of loans and interest with lenders.