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Over 2,600 companies register via MyCO system in five months

According to the statistics released by the Directorate of Investment and Company Administration (DICA), the number of companies registered on the online registry system MyCO reached over 2,600 in the first five months of this year.
According to the Myanmar Companies Law 2017, registration must be done using the electronic registration system (MyCO), which was introduced on 1 August 2018. This year, the number of registered companies on MyCO was 1,373 in January, 188 in February, 163 in March, 254 in April and 686 in May, the DICA’s statistics showed. According to DICA, 100 per cent of MyCO system users are practising online application instead of manual filings. In 2020, the figures stood at 1,415 in January, 1,298 in February, 1,015 in March, 348 in April, 798 in May, 1,314 in June, 1,650 in July, 1,551 in August and 1,378 in September, 1,693 in October, 1,099 in November and 1,521 in December, the data of  DICA showed. In 2019, the number of registered companies mounted to 1,733 in January, 1,419 in February and 1,108 in March, 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August, 1,181 in September, 2,059 in October, 1,615 in November and 1,772 in December as per statistics of the DICA.

When the online registry was launched in August 2018, 1,816 new companies got registered via MyCO. The figures stood at 2,218 in September 2018, 1,671 in October, 1,431 in November and 1,364 in December 2018. Further, all registered companies (old and new) need to submit annual returns (AR) on MyCo system within two months of incorporation and at least once a year (not later than one month after the anniversary of incorporation), according to Section 97 of Myanmar Companies Law 2017. According to Section 266 (A) of the Myanmar Companies Law 2017, public companies must submit the annual returns and the financial statements (G-5) at the same time. And, all overseas corporations must submit annual reports in the prescribed format on MyCo in 28 days after the end of the financial year under Section 53 (A-1) of the Myanmar Companies Law 2017.

The companies have to submit AR within AR due date. However, more than 16,000 companies were suspended as of September 2020 because they have filed to submit AR. Therefore, the newly established companies are requested to submit AR within two months of incorporation. If they fail to do so, they may face a fine of K 100,000. If the AR form is filed to submit within 13 months, the system will send a suspension (I-9A) notification letter in company status. Besides, if the AR form is also filed to submit after receiving (I-9A) within 28 days’ notice, the system will show suspended in company status. Under this situation, the companies can restore their status by paying AR and late fees. Then, the companies need to submit the I-9D form. The suspended companies will have to pay a fine of K50,000 for the AR fees, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents. If AR forms are filed to submit again within six months of suspension, the system will show struck off in company status.

Source: The Global New Light of Myanmar

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Myanmar foreign trade tops $2.176 bln as of 21 May

Myanmar’s external trade between 1 October and 21 May in the current financial year 2020-2021 plummeted to US$2.1 billion, a sharp drop of over $1 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. During the same period in the previous FY, the trade stood at $3.2 billion, according to data released by the ministry. Over the past seven months, Myanmar’s export was worth over $9.475 billion, which plunged from $9.8 billion registered a year-ago period.

Meanwhile, the country’s import was valued $11.65 billion, showing a significant decrease of $1.358 billion compared with the last FY. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened the border security and limited the trading time to contain the spread of the virus. At present, the traders have transaction problem triggered by the restriction of the private banks, a market observer shared his opinion. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while 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. Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach an export target of US$16 billion and import at $18 billion. The external trade stood at $36.73 billion in the 2019-2020FY, $35.147 billion in the 2018-2019FY, $18.728 billion in the 2018 six-month interim period, $33.578 billion in the 2017-2018FY and $29.209 billion in the 2016-2017FY, respectively, as per the Commerce Ministry’s statistics. 

Source: The Global New Light of Myanmar

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Stocks on YSX inch up in May

The number of shares traded on the Yangon Stock Exchange (YSX) climbed to 78,642 shares in May 2021, generating the trading value of K432.448 million, the YSX’s monthly report indicated. In February 2021, K442 million worth of 77,388 shares were traded on the exchange. The figures extended further drops to K110 million worth of 19,816 shares in March 2021. Then, the market slightly rose in April with K280 million worth of 42,964 shares. The stocks maintained in the bull market in May as well. 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, a market observer points out.

At present, people are keeping emergency savings rather than investing in the COVID-19 crisis and current political conditions, he added. In May, the 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 Ever Flow River Group Public Co., Ltd (EFR) were traded in the equity market. The share prices per unit were closed at K9,100 for FMI, K3,500 for MTSH, K7,800 for MCB, K19,500 for FPB, K2,750 for TMH and K3,100 for EFR, respectively. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has continued operating without stopping trading.

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 resurgences in Myanmar, the exchange’s monthly report showed. A total of K12.6 billion worth of 1.87 million shares by six listed companies were traded on the exchange in 2020, a significant drop compared to 2019. Over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019, according to the annual report released by the exchange. Additionally, Amata Holding Public Co., Ltd. (AMATA) was listed on the exchange on 3 June, with an introductory price of K4,500.

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 a pre-listing board (PLB) on 28 September 2020 in order to provide unlisted public companies with fund-raising opportunities and build a bridge toward listing on YSX, YSX stated. The YSX was launched four 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