Tag: State of Emergency
Myanmar Announces Direct Border Trade Currency Settlement with Thailand; Plans Similar Non-Dollar Convertibility with India in Near Future
Myanmar's Minister of Information (MOI) Mr Maung Maung Ohn and Minister of Investments and Foreign Economic Relations (MIFER) Mr Aung Naing Oo said in a joint statement today that the kyat-baht initiative is a significant development as Thailand is Myanmar's second largest trading partner after China. The Myanmar Government intends to initiate similar currency convertibility for the Indian rupee for trade along the border it shares with India.
Myanmar and China commenced kyat-renminbi settlement for border trades in January 2022. The increasing use of non-US dollar direct currency settlement for border trade underscores the strong bilateral relations that Myanmar enjoys with its neighbours.
The kyat-baht settlement arrangement was endorsed by an official notification and guidelines issued by the Central Bank earlier this month. All settlements will be conducted online as opposed to cash transactions previously.
In Fiscal Year (FY) 2020-2021 (November-to-October) border trade along five checkpoints of the Myanmar-Thai border - Tachileik, Myawady, Kawthoung, Myeik and Hteekhee, - amounted to USD4.3 billion equivalent, up from USD3.9 billion in FY 2019-2020.
Starting this month merchants along the Myanmar-Thai border who are registered with the Myanmar Economic Bank can conduct trade based on the kyat-baht exchange rate announced daily by the Central Bank of Myanmar.
In FY 2020-2021 Thailand accounted for 17.61% of Myanmar's total trade which rose to USD5.3 billion from USD5.2 billion in FY2019-2020. Myanmar's main exports to Thailand include natural gas, base metals, electronic goods, pulses, and garments. In turn, Myanmar imports from Thailand machinery, appliances transport equipment and manufactured goods.
"Myanmar's immediate neighbours account for up to 70% of the country's total trade volume. Direct non-dollar currency settlements will help to broaden and facilitate bilateral trade, flow of goods and other forms of payment and settlement with the respective countries.
"As Myanmar gradually adopts full bilateral currency swap arrangements with various countries, regional economic cooperation will also be strengthened. By reducing dependence on the US dollar, we will mitigate the risk of sudden exchange rate swings due to external geopolitical factors. Myanmar can also reduce physical money in circulation as more trade transactions migrate online. If we can succeed with such arrangements with our immediate neighbours, Myanmar can gradually reduce the dependence on the US dollar for up to 70% of Myanmar's national trade volume," the two Ministers added.
The currency arrangements will also help Myanmar reduce inflation caused by the rise of the U.S. dollar, while alleviating concerns of currency shortage within the country. The arrangements will also contribute to the economic recovery of the country which - despite rising energy prices - expects to record modest GDP growth in the current fiscal year ending October 2022.
The currency shortage and weaker kyat last year was stoked by economic sabotage by the opponents including so-called People's Defensive Force (PDF) which tried to sow distrust in the local banking and financial system. Supported by foreign elements, the outlawed PDF also launched a terror campaign which caused the lives of many Government servants, security forces, and damage to public infrastructure.
The disturbances commenced after the 1 February 2021 Proclamation to declare a state of Emergency in Myanmar. Since the second half of 2021, the country has achieved national stability under the State Administration Council (SAC) which intends to call for a multi-party general election to be held by August 2023.
ASEAN Economic Ministers' Meeting
Myanmar's Minister of Foreign Investments and Economic Relations will represent the country at the March 16-17 ASEAN Economic Ministers' Retreat. "The Ministry will update other ASEAN members on the economic impact on Myanmar caused by two recent crisis situations - the COVID-19 pandemic and civil disobedience," said MIFER Minister Aung Naing Oo.
The Ministry will also update the significant efforts Myanmar is taking to develop the small and medium enterprises especially in the agriculture and manufacturing sectors through provision of credit and measures to facilitate the business environment despite the two major challenges.
"While the pressure on the financial system has eased and the kyat has stabilized due to policies implemented by the SAC, the Russia-Ukraine conflict has caused domestic energy prices to spike.
Due to the level of development of the country and recent crisis situations, Myanmar has probably faced more challenges than most other ASEAN members in the past year or so," they said.
Minister Aung Naing Oo also said:
"Myanmar has made every effort to fulfill its obligations under the four pillars of the ASEAN Economic Community.
Myanmar is one of the earliest signatory states to deposit its instrument of ratification of the Regional Comprehensive Economic Partnership (RCEP) in accordance with the RCEP Agreement. However, Myanmar's instrument of ratification has been politicised by some RCEP participating countries. Likewise, Myanmar's ratification letter for Protocol to Implement the Tenth Package of Commitments under the ASEAN Framework Agreement on Services has also faced the same problem.
ASEAN's approaches to creating a much stronger Southeast Asia, narrowing the development gap within ASEAN, and strengthening economic resilience cannot be fulfilled if Myanmar is excluded. This is not consistent with the ASEAN Charter. Myanmar believes that such actions can affect ASEAN's centrality.
For all member countries to benefit from economic integration, an all-inclusive manner is needed in ASEAN. No country should lag in regional economic integration. Sadly, some of ASEAN's directions and actions appear mismatched on the ground.
Whatever the challenges, Myanmar will actively continue to fulfill the commitments and obligations as an ASEAN member and as a responsible global citizen."
Issued by Ministry of Information and Ministry of Investment and Foreign Economic Relations, Union Government of Myanmar.
For more information, please contact [email protected] or [email protected]
Copyright 2022 ACN Newswire. All rights reserved. www.acnnewswire.comThe Myanmar Government has agreed to accept the Thai baht as an official currency for settling border trade starting this month. Thailand is the second country after China to permit its national currency to be exchangeable with the Myanmar kyat for border trade activities.
Myanmar’s Minister of Information Mr Maung Maung Ohn Addresses Domestic Security Situation, Foreign Media Perception, and Preparations for Multi-Party Elections
"As you are aware, Myanmar Government is committed to maintaining friendly relationships with the media. Through your efforts you can share the true situation about Myanmar to the world.
Myanmar recently marked 2 major milestones. 2 February 2022 marked the anniversary of the formation of the State Administration Council (SAC) on 2 February 2021 after the Proclamation a day earlier. The second is the celebration of Union Day on 12 February 2022.
The Proclamation of 1 February 2021 was made following the failure to settle the issue of voter fraud list related to the 2020 elections, and subsequent postponement of Parliament sessions. The SAC has clearly stated that it is a caretaker government to carry out duties during a state of emergency.
The SAC has clearly stated to the people and to the international community that the Five-Point Road Map and Nine Objectives of the country were set out once it took the power of the State. It is performing its duties as a national responsibility, focusing on 2 main areas: national welfare and food security.
The SAC's interim role will end after a new government is formed following multi-party democratic elections which will be held by August 2023 under Article 429 of the 2008 Constitution. Indeed, these elections will serve as the foundation of Myanmar's democratic and political system.
Myanmar is a country with more than 130 ethnic groups among our population of 54 million people. Without such a firm foundation of proportional representation Myanmar will never achieve unity. That is the spirit of Union Day which we just celebrated on 12 February. Hence, this date is sacred to our nationhood.
Those who seek to divide Myanmar had tried to convene Parliament without addressing the fraud issue of the November 2020 elections. When the SAC was formed, they sought to discredit it. They have chosen a path of civil disobedience which has caused death, destruction and disruption of social and economic activity. Calling themselves the People's Defensive Force they have chosen terrorism and sought foreign support. And some foreign elements seem to have supported them and such acts of terrorism.
I want to address 3 issues at this media briefing.
* The first is to update on security matters from the viewpoint of the Government.
* The second is the media bias and the perception of Myanmar by the international community.
* The third relates to Proportional Representation and Preparations by The Union Election Commission for the coming elections.
- Security Matters -
The Government of the day has a duty to protect its citizens. Its security forces must prevent death, injury, destruction of property and disruption of social and economic activity. Its duty is to ensure peace and security.
Since the Proclamation the security forces have had to deal with clear acts of terrorism. Indeed, on 7 September 2021 the so-called National Unity Government (NUG) said it had launched a 'defensive war' and called for 'revolt' against the Government in 'every corner of the country'.
Government officers have suffered attacks which resulted in the deaths of 95 civil servants and many injured. 20 monks have been assassinated. 153 Government servants were injured. Acts of terrorism have led to the destruction of large number of public and government buildings. These include 525 roads and bridges, 27 hospitals and clinics, 504 schools and educational buildings were destroyed across the nation from 1 February 2021 to 20 January 2022.
All told, the Government recorded 9,437 terrorist attacks in the past year and seized 5,606 assorted arms, 161,556 rounds of ammunition, 1,890 grenades and 11,424 homemade mines and bombs.
The security forces have arrested 4,338 terrorists. Nonetheless, the SAC has, on humanitarian grounds, pardoned and released 48,718 persons who had been prosecuted for participating in protests due to the incitement of the so-called Committee Representing Pyidaungsu Hluittaw (CRPH) and the so-called National Unity Government (NUG). Those released include 23,369 inmates released on Union Day on 12 February 2022.
In preventing such violence, the security forces have had to carry out the duty. Please see for yourself the return to normalcy in all major towns and cities in the country. Yes, there are still terrorism incidents in some parts of the country but in general, the security forces have helped to achieve national stability that we see today.
- Media Perception -
Myanmar is friendly to the media. We have accredited many journalists from international media organisations. What we find troubling is the clear and persistent bias of certain foreign media towards terrorist groups. But these media are doing so without fully ascertaining the facts. The terrorists appear to have swayed sections of the foreign media who report without checking and repeat misinformation as truth.
Two specific incidents come to mind. The first is the incident at Thantlang, Chin State in October 2021 to early January 2022. The second is an incident at Phruso Township, Kayah State in December 2021.
In both instances, the so-called PDF and parties sympathetic to it initiated attacks with arms and committed arson against security forces. In the Kayah State incident, the terrorists hid among civilians, and fired a 107-mm rocket launcher before fleeing. I have to stress that these attacks were initiated by terrorists and not by the security forces who were then called to respond.
In the Chin State incident that occurred on 29 October 2021, some vehicles caught between the 2 sides involved in the fire fight were set ablaze. The security forces tried to engage the local firefighting brigade but its vehicles had already been damaged earlier by the terrorists and it could not extinguish the fire. The terrorists abducted, handcuffed and killed some members of the Border Guard Force and then fabricated a story that security forces were responsible.
Many of the stories were written by journalists from the Western media who were not even present in Myanmar at the time. Indeed, many of these writers are reporting from abroad. They rely on 'informants' or propaganda on social media. They carried pictures of the arson attacks and blame the incidents on security forces.
The Ministry of Information will do its best to communicate the role and actions of the Government. That we are meeting the media and taking questions shows you that we have nothing to hide. We hope that the international media adhere to the principles of good journalism when reporting on Myanmar.
- Preparing for Elections -
Myanmar has held multi-party democracy elections in 2010 and 2015 and will do so again by August 2023.
The SAC is committed to the concept of Federalism. By this we understand it as sharing authority with regions, states, ethnic groups and races in a spirit of unity and integration.
We need to achieve true Proportional Representation (PR) so that various political parties have a wider scale of representation. Even if different political parties have different interpretations and concepts of federalism, we must come together to select the political system through a democratic process.
That political system must recognise the wishes of the majority and the minority in achieving harmony. It must involve sharing of power to enable the regions and states to have the rights of self-administration under the Constitution. Power must be shared on a tripartite basis - the Union, the regions, and the states.
In line with these principles and objectives, the current Union Election Commission (UEC) held 4 meetings with Political Parties last year to implement the System of Proportional Representation that is voter-based and democratic. These meetings have been successful, and a Closed List Proportional Representation System will be used to ensure that the process is fair. To achieve this UEC is amending the relevant laws and rules, reorganizing sub-commissions and providing the necessary training.
Basic voter registration is being carried out in the Regions and States to complete the voter list. A pilot project to verify the ground census so as to ensure accuracy of the basic voter list is also being implemented by the relevant ministries. Hence, major preparations are underway to hold free and fair multi-party democratic general elections in accordance with the Constitution (2008).
We hope that the international community understands that Myanmar is committed to the democratic process. They should not be blinded by sections of the international media who are fixated on a certain narrative about the country.
Myanmar has friendly relations with many countries who understand our challenges and have extended help in the form of humanitarian assistance and regular dialogue without interfering in domestic affairs. They continue to invest in our country away from the glare of publicity.
But Myanmar also has countries that are not friendly to us. Some want to impose a set of values that are consistent with the negative perception of sections of the foreign media. Some of these actions verge on interference of our domestic affairs. We hope these countries can view Myanmar without the lens of a biased narrative and recognise our history and unique social-political fabric.
We are determined to purse the path to democracy to ensure unity and progress. Thank you."
Issued by Ministry of Information, Union Government of Myanmar.
For more information, please contact: [email protected] or [email protected]
Copyright 2022 ACN Newswire. All rights reserved. www.acnnewswire.comThe Ministry of Information (MOI) of the Union Government of Myanmar released today remarks by Minister of Information, Mr Maung Maung Ohn, addressing the domestic security situation, preparations for multi-party elections and foreign media perception.
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Myanmar Government Approved USD 3.82 Billion in Foreign Investment and USD 651 Million in Domestic Investment in First Year of State Administration Council
The Ministry of Information (MOI) and the Ministry of Investment and Foreign Economic Relations (MIFER) released the latest investment figures for the country for the period between 1 February 2021 - when a Proclamation was issued - and 20 January 2022.
The SAC was formed on 2 February 2021, a day after the Proclamation was issued after the failure to settle the issue of voter list fraud and malpractices in the 8 November 2020 elections, and to postpone parliament sessions. A state of emergency was declared in accordance with Article 417 of the 2008 Constitution of Myanmar.
Despite destruction of public property, attacks on Government personnel and attempts to sabotage the domestic economy by the so-called People's Defense Force - with clear support from foreign elements - the SAC had largely restored national stability by the second half of 2021.
Myanmar faced a second crisis, a health pandemic that arose from the outbreak that was first detected in the country in March 2020. However, due to intense efforts to contain COVID-19, schools, universities have reopened, and most commercial activities have resumed in recent months with the vaccination of at least 60% the country's population (above 18 years) to date.
The MOI and MIFER said among the 50 domestic (citizens') investments approved in the past year, seven were for projects in the services sector with investment value of USD 427.34 million equivalent and 29 were for manufacturing projects with investment value of USD 74.58 million equivalent. The mining, power and construction sectors also attracted sizeable citizens' investments during this period.
Foreign investments approved in the past year included a USD 2.5 billion project to construct a liquefied natural gas (LNG) power plant, the two Ministers said.
The People's Republic of China (PRC), apart from being the largest trading partner of Myanmar, is the largest foreign investor in the country. Among the non-PRC foreign investments approved in the past year were one from Japan (USD 516.43 million), four from Singapore (totaling USD 442.20 million), two from Thailand (totaling USD 75.50 million) five from South Korea (totaling USD 66.17 million) and seven from Hong Kong (totaling USD 60.09 million).
The Government estimates that the foreign investments over the past year led to the creation of 25,383 new jobs while domestic investments added a further 11,879 new jobs, or a total of 37,262 jobs.
Myanmar Government is accelerating efforts to improve trade flows with and investments from countries such as Russia that, until recently, have not been among its leading economic partners. Prior to the pandemic, which curtailed business travel and activities, Myanmar-Russia bilateral trade had increased 30% in FY2019-2020 (November to October) compared to the year earlier.
Despite the challenges of the pandemic Myanmar and Russia are actively formulating a Bilateral Strategy for Development of Economic Cooperation. The latter has already led to a first virtual business matching session attended by dozens of business leaders from both countries last September. A second such virtual session will be held on 31 January 2022.
The two countries, which signed an Inter-Governmental Joint Commission for Trade and Economic Cooperation in August 2014, plan to hold its third Joint Commission meeting, physically, in Nay Pyi Taw in the near future.
Russian corporations have invested USD 94 million in Myanmar, mostly in the oil and gas sector, and the country currently ranks 22nd out of 52 foreign investors. Myanmar Government will support the extension of Russian investment interest to sectors such as mineral processing, solar energy, railway and ICT, aviation, automobiles and tourism.
"Economic recovery is a major priority as the country recovers from two crises and prepares for multi-party elections to be held by August 2023," said MOI Minister Mr. Maung Maung Ohn and MIFER Minister Mr. Aung Naing Oo in their joint statement.
"Due to good weather, Government financial support such as concessionary loans, and the relatively low impact of the pandemic compared to other sectors, the agriculture, fisheries and livestock sectors are reporting healthy growth. As workers return to workplaces in the past few months, the influx of new domestic and foreign investments will also contribute to job creation," they said.
These factors along with national stability and improved vaccination rates will help Myanmar register a modest economic recovery in 2021-2022 after a single-digit contraction of its Gross Domestic Product in 2020-2021 - which is less dire than forecasts of some international economists.
"While certain quarters of the international community publicly discourage economic cooperation with Myanmar, the country continues to record substantial trading volume as well as domestic and foreign investments. Many of our foreign partners choose to work quietly with us, fully recognizing Myanmar's economic potential as well as its unique challenges," the two Ministers said.
"We have shared with foreign partners our efforts to deal with economic sabotage in the form of attempts to boycott Government revenue, shake confidence in financial institutions and destabilise the kyat. Despite these challenges, our Ministries and Government departments have been working diligently away from public glare to increase trade and investment flows," they added. "These efforts have clearly borne fruit and we seek to increase such activities domestically and with foreign partners."
* All equivalents based on exchange rate of approximately USD1.0 to 1,771 kyat as at 26 January 2022.
Issued by Ministry of Information, Union Government of Myanmar
Please see https://www.moi.gov.mm/moi:eng/announcements/5962
Contact [email protected] or [email protected].
Copyright 2022 ACN Newswire. All rights reserved. www.acnnewswire.comThe Myanmar Government said today it has approved USD 3.82 billion of foreign investments and USD 651 million equivalent(1) in domestic investments in first year since the State Administration Council (SAC) took office. The investment commitments underscore confidence in the country's economic potential amid a return to national stability and efforts to increase vaccination rates to contain the COVID-19 pandemic.
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