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External trade dives by $2 bln as of 18 December

Myanmar’s external trade between 1 October and 18 December in the current financial year 2020-2021 touched a low of US$6.14 billion, a sharp drop of $2.065 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. According to the ministry data during the same period in the previous FY, trade stood at $8.2 billion. As of 18 December 2020, Myanmar’s export was worth $2.87 billion, which plunged from $4.1 billion registered a year-ago period. Meanwhile, the country’s import was valued $3.27 billion, showing a decrease of $824 million compared with the last FY. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limited the trading time to contain the spread of the virus.

Moreover, the severe container shortage has become the biggest disrupter in shipping amid the coronavirus impacts, on the back of robust demand on the Asia-Europe and transpacific trade. Container shipping costs are drastically surging. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders.
Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods. At the same time, it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports.


Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government. Myanmar has already surpassed the total trade value target of $34 billion for the last FY, said an official from the ministry. Last FY2019-2020, Myanmar’s external trade reflected an increase of $1.5 billion compared with the FY2018-2019 as it increased from over $35 billion to $36.6 billion. Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. The Ministry of Commerce is focusing on export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade environment.

Source: The Global New Light of Myanmar

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Domestic, foreign enterprises create over 9,000 jobs in Oct-Nov

The domestic and foreign enterprises permitted and endorsed by the Myanmar Investment Commission (MIC) and other regional and state investment committees created 9,031 jobs in the first two months (Oct-Nov) of the current financial year 2020-2021, according to the Directorate of Investment and Company Administration (DICA). The job creation in the past two months slowed further than the rate in September, according to statistics issued by the Myanmar Investment Commission (MIC). The job creation stood at 4,485 in November and 4,546 in October, which plunged from 11,990 jobs in September. During the October-November period, the foreign enterprises created over 7,081 jobs for locals, adding the existing foreign enterprises’ recruitment.

The domestic enterprises under the Myanmar Investment Commission created 1,950 jobs for local people, including increased employment by the existing enterprises. MIC and the relevant investment committees in the past two months gave the go-ahead to 14 foreign enterprises from China, Singapore, the Republic of Korea, Thailand, India and Viet Nam in manufacturing, livestock & fisheries and agriculture and other service sectors. They brought in an estimated capital of US$199.756 million, including the expansion of capital by existing enterprises. Meanwhile, 17 domestic enterprises invested K69.86 billion in manufacturing, real estate, hotel & tourism, agriculture and other service sectors. In the previous financial year ended 30 September 2020, the domestic and foreign enterprises have created about 200,000 jobs since October 2019.

The job creation includes employment of about 5,000 expatriate workers in Myanmar, according to the Directorate of Investment and Company Administration (DICA). MIC is prioritizing the labour-intensive businesses. The commission ensures to approve responsible companies by assessing environmental and social impacts. The commission is working together with the relevant departments to screen the projects, said director-general of the DICA. According to the DICA, domestic and foreign projects employ over 670,000 residents in the incumbent government period. Those enterprises have created over 96,000 jobs in the FY2016-2017, 110,000 jobs in the FY2017-2018, over 53,000 jobs in the 2018 mini-budget period, over 180,000 jobs in the FY2018-2019 and 210,000 jobs in the FY2019-2020 respectively.

Source: The Global New Light of Myanmar

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First modern credit bureau launched in Myanmar

Myanmar Credit Bureau Limited (MMCB) on December 30 launched the country’s first and only modern credit bureau.

MMCB, which is licensed by the Central Bank of Myanmar (CBM), will provide Myanmar with a modern credit reporting system that will enable lenders to expand the financing options available for individuals and businesses. It will also encourage more responsible lending in the country. The bureau has been centralising information gathered from financial institutions in Myanmar about their borrowers since its soft launch in November. This includes borrowers’ personal and contact information, credit accounts and repayment history as well as information on any collateral listed to obtain a loan. MMCB does not collect information on borrowers’ net worth, assets or bank deposit amounts.

With this information, the bureau produces credit reports on individuals or corporates to help financial institutions make better lending decisions and lower the risk of defaults. Borrowers, in turn, should expect faster and more competitive services from lenders. MMCB, which received its license from the CBM in May 2018, currently has over 220 potential members including national and local banks, foreign bank branches, and non-bank financial institutions. It plans to widen membership and expand its product and service offerings to include credit scores and data analytics reports over the next two years.

The bureau is a 60:40 joint venture between MB Investment, a company formed by members of the Myanmar Banks Association, and Singapore-listed Credit Bureau Asia’s wholly-owned subsidiary NSP Asia Investment Holding. Credit Bureau Asia, which also operates the sole credit bureau in Cambodia, made its debut on the Singapore Exchange in December 2 at 93 cents per share. The company’s shares closed at $1.17 each before the announcement.

Source: Myanmar Times

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Announcement on Extension of the Precautionary Restriction Measures Relating to Control of the COVID-19 Pandemic until 31 January 2021

1. With a view to the further strengthening of measures to contain the spread of the COVID-19 pandemic, the Ministry of Foreign Affairs of the Republic of the Union of Myanmar has issued the following announcements regarding temporary entry restrictions for visitors from all countries. All those restrictions were extended until 31 December 2020 by the Ministry’s announcement dated 15 December 2020.
(a) Announcement dated 15 March 2020 regarding precautionary measures for all travellers visiting Myanmar;
(b) Announcement dated 20 March 2020 regarding additional precautionary measures for travellers visiting Myanmar and temporary suspension of issuance of visa on Arrival and e-visa;
(c) Announcement dated 24 March 2020 regarding additional precautionary measures for travellers from all countries visiting Myanmar;
(d) Announcement dated 28 March 2020 regarding temporary suspension of all types of visas (including social visit visas) and visa exemption services.


2. In order to continue its effective response measures to protect the population of the country from the risks of importation and spread of the COVID-19, the Government of the Republic of the Union of Myanmar has decided to extend the afore-mentioned entry restriction measures until 31 January 2021.


3. In case of urgent official missions or compelling reasons, foreign nationals, including diplomats and United Nations officials, who wish to travel to Myanmar by available relief or special flights, may contact the nearest Myanmar Mission for possible exception with regard to certain visa restrictions. However, all visitors must abide by existing directives issued by the Ministry of Health and Sports relating to the prevention and control of the COVID-19 pandemic.

Ministry of Foreign Affairs
Nay Pyi Taw
Dated. 30 December 2020

Source: The Global New Light of Myanmar

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Republic of the Union of Myanmar Ministry of Planning, Finance and Industry Announcement 8/2020

Republic of the Union of Myanmar
Ministry of Planning,
Finance and Industry
Announcement 8/2020

1st Waning of Nadaw, 1382 ME
30 December 2020
Nay Pyi Taw

1. For ensuring strict adherence to COVID-19 preventive rules among the public in accordance with the National-Level Central Committee on Prevention, Control and Treatment of Coronavirus Disease 2019 (COVID-19), and not to occur crowds of taxpayers during the period closer to the deadline for filing tax declaration, the respective deadlines will be extended.
2. Therefore, the tax declarations for the following deadlines are extended until 31 January 2021.
(a) Income tax declaration, annual salary report and annual commercial tax declaration to be filed for 2019-2020 Financial Year
(b) Quarterly declaration for Specific Goods Tax from 1-10-2020 to 31-12-2020

Ministry of Planning, Finance and Industry

Source: The Global New Light of Myanmar

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Republic of the Union of Myanmar Ministry of Planning, Finance and Industry Announcement 7/2020

Republic of the Union of Myanmar
Ministry of Planning, Finance and Industry
Announcement 7/2020

1st Waning of Nadaw, 1382 ME
30 December 2020
Nay Pyi Taw
Notification to Taxpayers

1. The period for deduction of tax relief according to the Union Taxation Law 2019 for the incomes exempted from the income was announced up to 30 September 2020 at the latest. Due to this announcement, the taxpayers have crowded into branches of Myanma Economic Bank during the COVID-19 outbreak to be able to enjoy the deduction of tax relief in line with the notice ‘Payment to the bank not later than 30-9-2020’ on the tax payment challan form. The Ministry of Planning, Finance and Industry has issued Announcement 4/2020 for the extension of tax payment to 30 December 2020, not to occur crowds at these
places.
2. For proper enforcement of the COVID-19 preventive rules among the public, the tax payment period included in the above-mentioned paragraph (1) will be extended to 31 January 2021.

Ministry of Planning, Finance and Industry

Source: The Global New Light of Myanmar

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Republic of the Union of Myanmar Ministry of Planning, Finance and Industry Notification 6/2020

Republic of the Union of Myanmar
Ministry of Planning, Finance and Industry
Notification 6/2020

1st Waning of Nadaw, 1382 ME
30 December 2020
Nay Pyi Taw

1. In accordance with the directives of the National-Level Central Committee on Prevention, Control and Treatment of Coronavirus Disease 2019 (COVID-19), the Ministry of Planning, Finance and Industry will continue the government’s tax relaxation scheme until the end of January 2021.
2. Regarding income taxes levied once in three months and monthly commercial taxes to be paid by CMP businesses, hotel and tourism businesses, and small and medium-sized enterprises for 2019-2020 Financial Year and 2020-2021 Financial Year—
(a) The income taxes for the second quarter of the 2019-2020 Financial Year (which will end on 31 March 2020), for the third quarter of the Financial Year (which will end on 30 June 2020), and for the fourth quarter of the Financial Year (which will end on 30 September 2020) and for the first quarter of the 2020-2021 financial year (which wil end on 31 December 2020) shall be paid until 31 January 2021.
(b) The monthly commercial taxes for the period from 31 March in 2019-2020 Financial Year to 31 December in 2020- 2021 Financial Year shall be paid until 31 January 2021.
3. The 2 per cent advance income tax in export items approved by the Union Government will be exempted until 31 January 2021.

Source: The Global New Light of Myanmar