ayasompo_joy_go_travel_insurance

AYA SOMPO and Oway come together to launch first-of-its kind Comprehensive Travel Insurance for Domestic and International

AYA SOMPO Insurance (AYA SOMPO) and Oway Pte Ltd, have entered a collaboration that will make domestic and international travel a lot safer for Myanmar citizens. AYA SOMPO and Oway launched the newly approved comprehensive travel insurance products – AYA Go and AYA Joy. As Myanmar’s first-ever comprehensive travel insurance products, AYA Go and AYA Joy travel insurance benefits are unique and provide a more holistic coverage, providing coverage for a wide range of challenges travellers face during their travels. AYA Joy is focused for international travellers and provides benefits for baggage loss, flight delay compensation, accident, hospitalisation, medical expense and personal liability coverage. AYA Go is for domestic travellers, providing coverage for medical/hospitalisation expenses, personal liability coverage, and accidental death payout. An optional child education fund is also offer under AYA Go.

The CEO of the AYA SOMPO said that they are delighted to receive approval from the Financial Regulatory Department (FRD) on our new comprehensive travel insurance products AYA Go and AYA Joy. As the first of their kind in the market, AYA Go and AYA Joy provide a more complete protection to travellers. AYA SOMPO continuously innovates not only in the digital services, but also the product offerings. They are one of the insurance companies in Myanmar to provide customers easy access to insurance products through innovative channels, enhancing the overall customer experience which includes an online submission of claims through our website. Pre-pandemic domestic air travels reached a total of 5.7 million and domestic travels from January to September 2020 reached a total of 5.7 million and domestic travels from January to September 2020 reached 2.4 million even during the COVID-19 pandemic.

The CEO of Oway Group said that their partnership with AYA SOMPO is part of their commitment to make travel easy and safe for people in Myanmar. They have been consistently investing in building a robust and sustainable ecosystem for online travel to expand so millions can take advantage of this digital economy. Oway’s website, oway.com.mm is the largest online travel portal in Myanmar. Launched in 2012, Oway offers a wide range of solutions for business and leisure travellers in Myanmar. The site is a one-stop shop that allows users to book domestic and international flights, hotels, land transportation, tours, holiday packages, e-commerce, ride hailing and now insurance using multiple payment options. To find out more about AYA Go and AYA Joy Comprehensive Travel Insurance from AYA SOMPO, visit www.ayasompo.com or AYA SOMPO’s Facebook Messenger at m.me/ayasompo.

Source: Myanmar Times

unnamed (1)

Myawady-Maesot border trade normal despite transport restrictions

THE border trade through Myawady-Maesot between Myanmar and Thailand remains normal although Thailand ordered restrictions in Maesot, according to Myawady Chamber of Commerce. Myawady border trade
did not halt owing to the restriction orders by Thailand. Myanmar trucks cannot enter Maesot, but trucks from Thailand come and pick up the goods at Myawady post, the chamber stated. We have experienced trade
suspension via Myawady in October. The halt in trading undoubtedly harms the traders and truck drivers from both sides. It is good that trade does not stop at present, said a trader from Myawady.


Trade between Thailand and Myanmar via the Myawady border between 1 October and 18 December in the current financial year 2020-2021 plunged to US$199.959 million from $238.639 million registered in the year-ago period, according to the data from the Ministry of Commerce. During the last financial year, Myanmar has increasingly exported corns to Thailand through Myawady border crossing. Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through land borders between Myanmar and Thailand during October and May period in the 2019-2020FY, said an official of the Ministry of Commerce.

Myanmar is prepping for corn export to Thailand under zero-tariff starting from 1 February 2020, said U Min Khaing, chairman of Myanmar Corn Industrial Association. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Hteekhee, Myeik, Mawtaung and Maese. Myanmar primarily exports corn, natural gas, fishery products, coal, tin concentrate (SN 71.58 percent), coconut (fresh and dry), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, consumer goods such as cosmetics and food products from the neighbouring country.

Source: The Global New Light of Myanmar

Myanmar, US to cooperate in digital economy development

The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and US Information and Communication Technology (US ICT) Council for Myanmar will continue working together to develop Myanmar’s digital economy. The UMFCCI said the cooperation will ensure Myanmar does not fall behind when it comes to the digital economy sector.

The UMFCCI vice chair said that the development of their digital economy is important. They will feel the effects if they are left behind by other countries. This is why they will cooperate (with the US ICT Council for Myanmar) last year and this is the second singing following the expiration of their initial one-year term.

The UMFCCI and the US ICT Council for Myanmar signed a new memorandum of understanding (MoU) on January 5. They will also cooperate in all sectors related to IT. The US ICT will provide technical and financial assistance though it is still not known how much funding the US ICT will provide. They will implement digital economy for the industrial and education sectors as well. The current Myanmar digital economy landscape has improved a lot of compared to the past.

Source: Myanmar Times

dica_logo

Number of companies registered on MyCo exceed 15,000 in 2020: DICA

The number of companies registered on the online registry system, MyCO, reached over 15,000 in 2020, the statistics released by the Directorate of Investment and Company Administration (DICA) indicated. The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, keeping with the Myanmar Companies Law 2017. Last year, the figures of registered companies stood at 1,415 in January, 1,298 in February and 1,015 in March, only 348 companies in April, 798 in May, 1,314 in June, 1,650 in July, 1,551 in August, 1,378 in September, 1,693 in October, 1,099 in November and 1,521 in December, as per statistics of the DICA.


At present, 100 per cent of the applicants are using the online registration platform, according to the DICA data. In 2019, the figure stood at 1,733 in January 2019, 1,419 in February, 1,108 in March, and over 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August and 1,181 in September. The figures reached a fresh new peak of 2,059 in October 2019. Then, 1,615 new companies in November and 1,772 in December were recorded, indicated the DICA data. When the online registry was launched in August 2018, 1,816 new companies registered on MyCO. The figure stood at 2,218 in September 2018, 1,671 in October, 1,431 in November and 1,364 in December 2018.


Since the online registry platform’s establishment, 40,960 new companies and 46,377 existing companies have registered and re-registered on MyCO, bringing the total number of registered companies to 87,337 by October-end. Also, all registered companies need to file annual returns (AR) on the MyCO registry system within two months of incorporation, and at least once every year (not later than one month after the anniversary of the incorporation), according to Section 97 of Myanmar Companies Law 2017. According to Section 266 (A) of the Myanmar Companies Law 2017, public companies must simultaneously submit annual returns and financial statements (G-5). All overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year ending, as per Section 53 (A-1) of the Myanmar Companies Law 2017.


Newly established companies are required to submit ARs within two months of incorporation or face a fine of K100,000 for filing late returns.
The DICA has notified that any company which fails to submit its AR within 13 months will be notified of its suspension (I-9A). If it fails to submit the AR within 28 days of receiving the notice, the system will show the company’s status as suspended. Companies can restore their position only after shelling out a fine of K50,000 for AR fee, K100,000 to restore the company on the Register, and K100,000 for late filing of documents. According to the DICA notice, if a company fails to restore its status within six months of suspension, the registrar will strike its name off the Register.

Source: The Global New Light of Myanmar

cathay-united-bank

Defying the Pandemic Cathay United Bank Yangon Branch Officially Opens

The Yangon Branch of Cathay United Bank (the Bank) was granted preliminary approval by the Central Bank of Myanmar in April, 2020. The president Alan Lee said that this year, despite the impact of the COVID-19 pandemic, they have successfully established the Yangon Branch with the efforts of their colleagues in Myanmar and Taiwan and the spirit of “One Team”. They hope to continue to contribute to the Myanmar in the future. Successful Opening Despite Severe Pandemic since 2010, when the economic and political reforms were initiated and the country was opened to foreign direct investment.

Myanmar economy has grown rapidly, with an average GDP growth rate of over 6% from 2016. In 2014, the Bank established a representative office in Yangon, the commercial capital of Myanmar. By deeply cultivating the local market, grasping business dynamics, and building a network of relationships over the past 6 years, the Bank has planted the seed of success for the Yangon Branch. Myanmar has been hit hard by COVID-19 with over 120,000 confirmed cases by the end of 2020. Despite the challenges posed by the pandemic during the preparation phase, the Bank is able to open its branch within 9 months of approval through the efforts of supervisors and staff in Myanmar, supported by remote technology from the HO.

The Yangon Branch will focus on corporate banking business, provide deposits, remittances, corporate loans, syndicated Loans, project finance, trade finance and other financial services in local currency and USD, target local medium & large enterprises and Taiwanese enterprises, and assiduously participate in infrastructure and economic development projects. With a strong presence in Greater China and Southeast Asia, combined with the expertise and passion of the professionals, the Bank expects to provide quality, complete, and comprehensive cross- border financial services, creating a win-win scenario for both customers and the Bank.

Source: Myanmar Times

ysx

YSX stock trading dives in 2020

According to the annual report released by the exchange, a total of K12.6 billion worth of 1.87 million shares by six listed companies were traded on the Yangon Stock Exchange (YSX) in 2020, a significant drop compared to 2019. Over 2.4 million shares from five listed companies, valued K13.39 billion, were traded on the exchange in 2019. Both continuous trading and block trading on YSX fell in 2020 despite Ever Flow River Group Public Co’s (EFR) debut, on the exchange on 28 May 2020. Amid the COVID-19 crisis, Myanmar’s securities market has been able to continue operating without stopping trading. At present, shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd (TMH) and the EFR are being traded on the exchange.

In 2020, the value of stocks traded on the exchange peaked at K1.48 billion in February. In contrast, trading on the exchange registered an all-time low of K552.9 million in November due to the COVID-19 resurgence in Myanmar. In January 2020, 196,836 shares worth K1.25 billion were traded on the exchange while 188,919 shares, with an estimated value of K1.48 billion, were traded on the exchange in February and K1.42 billion worth 228,913 shares were traded in March respectively. It touched the lowest of K902 million with 173,808 shares in April. It rose to K1.2 billion with 200,416 shares being traded in May. The share volumes traded on the exchange surged to 221,682 in June, with estimated value K1.3 billion and then, it fell to K1 billion with 125,137 shares in July. In August, the exchange witnessed a low stock trading value at K747.5 million, with 118,850 shares traded. The value slightly rose to K838.67 million, with 85,237 shares on the exchange in September. It continued drops in October with 85,630 shares worth K673.5 million.

The value of shares traded on the exchange sank to the lowest level of K552.9 million in November, with 107,028 shares. The trading value rose to K1.14 billion with 139,513 shares in December, the exchange’s monthly report showed. The price per share of FMI decreased from K11,500 in January 2020 to K9,900 on 30 December 2020. The share price of MTSH remained unchanged at K3,850 last year. MCB’s stock price also dipped to K8,000 from K8,200. The cost of FPB showed a small drop from K23,000 to K22,500, while TMH slightly fell to K2,800 from K2,850. Nevertheless, the share price of EFR rose to K3,700 in Dec-end compared with the rate in May 2020. In 2016, only three companies were traded on the YSX — FMI, MTSH, and MCB. One more public company, FPB, was listed on the YSX in 2017. In 2018, TMH debuted on the exchange. EFR entered the exchange in 2020. This year, Amata Holding Public Co., Ltd has been approved to be listed on the exchange, and the listing date will be announced soon.


More than 2.5 million shares of three listed companies were traded on the YSX in 2016, and their value was estimated at K70 billion. In 2017, despite an increase in the stock trading volume to 2.6 million shares, the trade value was only K22 billion. In 2018, 2.3 million shares of five companies, worth K11.5 billion, were traded on the exchange, according to the annual report of the YSX. The stock markets worldwide have reported their largest declines since the 2008 financial crisis. Similarly, the local equities market is also scared by the COVID-19 crash, points out a market observer. At present, people are putting money in savings, rather than investing during the COVID-19 crisis, he added. YSX held webinar sessions on 26 and 27 December to share the future benefit of stock investment for the investors, in coordination with securities companies (MSEC, KBZSC, CBSC, AYA Trust SC, KTzRH and uabsc).


Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020.
Furthermore, YSX launched pre-listing board (PLB) on 28 September 2020 to provide unlisted public companies with fund-raising opportunities and build a bridge toward listing on YSX, YSX stated. The YSX was launched three years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment seminars. The stock exchange has also sought the government’s support to get more public companies to participate in the stock market and help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge.

Source: The Global New Light of Myanmar

unnamed

Myanmar’s manufacturing sector is still badly affected by the lockdown restriction

According to the Manufacturing Purchasing Managers’ Index (PMI) for November 2020, the Myanmar manufacturing sector is still badly affected by the lockdown, and demand and production continue to fall due to weak demand. Manufacturing in Myanmar continued to decline in November, with a slump in production; New orders All jobs and imports fell to record lows. The closure of factories due to restrictions imposed to control the spread of COVID-19 infection has been cited as the cause of the latest downturn. However, many indexes rebounded from last month’s lows and are the slowest in the current three-month slump. Companies expect production to increase in the next 12 months, but overall optimism is weak.

Looking at prices, inflation in the cost of production has accelerated during the last survey period, and survey respondents have often pointed to a shortage of raw materials. At the same time, declining factory prices have been linked to efforts to boost sales. Myanmar’s PMI for November was 43.2, up from 30.6 in October. The latest figures point to a recovery in Myanmar’s manufacturing sector, despite further signs of a downturn. When industries are shut down and demand weakens, up to 85% of the PMI is focused on components such as manufacturing, New orders Imports, inventories and workplaces came under heavy pressure on key indicators in November.

 Jobs were cut short as workers were forced to return to their hometowns due to lockdown restrictions. In the meantime, buying volatility has fallen at its strongest pace since December 2015, when the survey began, due to the stress of volatile demand in the coming months. Companies reported lower orders in November. Overall, the rate of decline was strong, but significantly weaker at the beginning of the last quarter. The latest drop in production with new orders further reduced the workforce. Production costs have risen for the second time in a row, with respondents explaining the scarcity of raw materials and rising transportation costs. Meanwhile, demand for the product fell sharply for the ninth straight month.

Finally, business confidence remains positive in the middle of the last quarter. Companies report plans to expand production and invest in equipment over the next year. Optimism is at its strongest in three months, but remains weak in survey data history. An economist at IHS Markit who conducted the survey said that Myanmar’s manufacturing sector is still severely affected by the latest lockdown restrictions. New orders As production and purchases fell sharply in November, job cuts also intensified. The latest downturn as a whole has been strong, the same amount as in February-June. The survey is based on original data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

8-fx

The Central Bank of Myanmar (CBM) has approved two more foreign remittance licenses to reduce the number of illegal remittance transactions and create more remittance transactions

The Central Bank of Myanmar (CBM) has issued two more foreign remittance licenses to reduce the number of illegal remittances and legalize remittances, and will be able to officially accept and send remittances. City Express Myanmar Ltd and Money King Co., Ltd were re-licensed by the Central Bank on 5 January 2021. The Central Bank of Myanmar started issuing foreign currency remittance licenses to five companies on November 18, 2020: OK Zune Co., Ltd .; 2C2P Plus (Myanmar) Co., Ltd; Wakhema Trading Co., Ltd; Top Shine General Services Co., Ltd; and OKM Global Remittance, which now has seven foreign remittance licenses. The holder of the foreign remittance business license must deposit 100 million kyats as security deposit and if the central bank directs that the business insurance deposit should be more than 100 million kyats due to the large size of the business, the licensee must comply with the instructions. 

The Revolving Fund must be kept in a separate account at an AD licensed bank and the bank statement of each bank account must be submitted to the Central Bank once a month. Holders of foreign remittance licenses are required to carry out Inward and Outward Remittance Business between Myanmar and other countries and receive money only for the purpose of remittance. Receiving money for remittances abroad when conducting remittance services; Remittances received in Myanmar must be made in Myanmar Kyats only. Foreign remittance services must be carried out only in the area permitted by the license. Back End Transactions can be carried out as a batch transaction between a local bank account and a private bank account or agent or branch or branch bank account or joint venture bank account. 

Netting must be done and remittances must be made through AD licensed banks. Once a month, the Central Bank of Myanmar shall submit the bank statement of the account opened abroad of the remittance business. The financial statements shall be submitted to the Foreign Exchange Management Department and shall be submitted to the Central Bank in accordance with the prescribed schedule. The maximum remittance amount per remittance or remittance amount is US $ 1,000, and the central bank limits the amount per remittance or remittance amount per person to US $ 5,000 per month.

Holders of foreign remittance licenses are required to comply with anti-money laundering and anti-terrorism provisions, and must report any suspected remittances in the remittance, which shall be maintained for at least five years. The initial license fee for foreign money transfer is one million kyats. The annual fee is 100,000 kyats and the license is valid for three years. Holders of foreign remittance licenses will be subject to disciplinary action up to and including revocation of their licenses if they violate the rules and regulations set by the Central Bank, and will face a fine of not less than 10 million kyats for each non-compliance.

Source: Daily Eleven

download (2)

Agricultural exports surge to $936 mln amid COVID impacts

The agricultural exports have touched a high of US$936.074 million as of 18 December 2020 in the current financial year since 1 October 2020 despite a drastic drop in overall export values amid the COVID-19 impacts. The figures reflect a significant rise of $156.3 million this FY. The agro exports soared from $779.69 million in the corresponding period of the 2019-2020FY, according to the trade figures released by the Ministry of Commerce. Myanmar’s agricultural exports rose regardless of the impact of the coronavirus on foreign demand. In the exports sector, the agriculture industry performed the best, accounting for 22 per cent of overall exports. The agricultural industry’s chief export items are rice and broken rice, pulses and beans, and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro products are also shipped to other countries.

Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. Sometimes, the export market remains uncertain due to unsteady global demand. The country requires specific export plans for each agro product, as they are currently exported to external markets based upon supply and demand. Contract farming systems, the involvement of regional and state agriculture departments, exporters, traders, and some grower groups, are required to meet production targets, said an official from the Agriculture Department. More than 100,000 acres of monsoon paddy have been cultivated under the contract farming system this year, according to the Myanmar Rice Federation (MRF). The Commerce Ministry is working to help farmers deal with high input costs, procurement of pedigree seeds, high cultivation costs, and unpredictable weather conditions.

Myanmar Agricultural Development Bank (MADB) under the Ministry of Planning, Finance and Industry has notified the farmers of agricultural loans for the current financial year. In a bid to mitigate the impacts stricken by the COVID-19, the bank also provided an additional loan of K50,000 per acre under the COVID-19 Special Relief Loan Scheme between June and September 2020. Moreover, it cut the loan interest rate from eight to five per cent during the COVID-19 crisis. The MADB grants agricultural loans to the small-scale farmers annually. The paddy farmers can take out loans of K150,000 per acre, while the growers of other crops including sugarcane, can get K100,000 per acre. They have to put the original Farmland Permit Form (7) up for collateral to secure the loan under the personal guarantee system.

Source: The Global New Light of Myanmar

Sittoung River-Crossing Bridge (Yedashe) unveiled to mark 73rd Independence Day

Bago Region Chief Minister U Win Thein and officials opened the Sittoung River-Crossing Bridge (Yedashe) yesterday to mark 73rd Anniversary of Independence Day. The bridge was constructed with a total of K3,500 million– K1,350 million by Bago Region government fund and K2,150 million by the Union Government Fund. It was built by Special Bridge Group (6) of Bridge Department under the Ministry of Construction.
The bridge is 800 ft in length, 30 ft in width, 24 ft for roadway and has a three-foot long pedestrian walkway on each side. The waterway clearance of the bridge is 28 metres (92 ft) in width and 3.7 metres (12 ft) in height. The steel truss bridge can accommodate up to HS-25. The bridge can facilitate the transport of people and develop the socio-economic, health and education sectors. The bridge is on Yedashe-Kayinchaung-Leiktoe Road and will connect Taungoo-Leiktoe-Yardo-Hopong Road via inter- district road No (2).—Tin Soe (Bago)