DSC_0585-0

Myanmar imports surpass exports in trade with Singapore this FY

The value of Myanmar’s imports exceeded exports in bilateral trade with Singapore in the past ten months (Oct-July) of the current fiscal year 2020-2021, with exports reaching over $181.4 million and imports valued at over $2.34 billion, according to the data from the Ministry of Commerce.

Myanmar trade deficit in goods with Singapore was estimated at US$2.158 billion in the past ten months (Oct-July) of the current financial year 2020-2021, the ministry’s statistics indicated. Singapore is Myanmar’s second largest trading partner in the region, after Thailand. In the current FY, the value of Myanmar’s bilateral trade with Singapore in normal trade and border trade topped $2.5 billion.

Myanmar exports agricultural products, footwear, textiles and clothing, minerals, and animal products to Singapore, while it imports plastic, fuel oil, capital goods, para-finished goods, consumer products, metals, and chemicals. Myanmar’s bilateral trade with Singapore was registered at $3.5 billion in the last fiscal year 2018-2019, $1.99 billion in the 2018 mini-budget period, $3.83 billion in the 2017-2018 FY, $2.96 billion in the 2016-2017 FY, and $3.69 billion in the 2015-2016 FY.

Source: The Global New Light of Myanmar

IMG_7709-mk

200 companies struck off register due to absence of AR in Sept: DICA

A total of 200 companies was struck off the register this month as they fail to submit annual return (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). The DICA has notified any registered company which fails to submit its AR on MyCO are to be suspended. The DICA found that 200 companies failed to restore their statuses within six months of suspension under Section 430 (f) of Myanmar Companies Law in September. The companies were struck off the registration during the period from 6 to 13 September respectively. Also, 500 companies were also struck off in July and August, according to the DICA’s notifications.

All registered companies need to file 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 the Section 97 of the law. According to the Section 266 (a) of the Myanmar Companies Law 2017, public companies must submit annual returns and financial statements (G-5) simultaneously. 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. As per DICA’s report, more than 16,000 companies were suspended for failure to submit AR forms within the due date. 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 statuses only after shelling out a fine of K50,000 for AR fee, K100,000 for restoration of the company on the register, and K100,000 for late filing of documents, totalling K250,000. If a company fails to restore its status within six months of suspension, the registrar will strike its name off the registration, according to the DICA notice. The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, in keeping with the Myanmar Companies Law 2017. The number of companies registered on the online registry system, MyCO, topped more than 2,000 in the first half of this year. Earlier, MyCO received more than 1,000 applications from new companies every month. At present, 100 per cent of the applicants are using the online registration platform, according to data provided by the DICA.

Source: The Global New Light of Myanmar

myanmar-exports-over-2-25-million-tons-of-rice

Myanmar rice export registers $642 mln this FY

Myanmar generated US$642.2 million income from exports of rice and broken rice in the past ten months (October-July) of the current financial year 2020-2021, according to Myanmar Customs Department. The volume of rice and broken rice exported in the past eight months was estimated at over 1.2 million metric tons. Border trade disruption led to a sluggish market yet the flat price occurs in the border export market. The prices of white rice varieties range US$375 to 405 per metric ton, the price of glutinous rice price was priced $600-610 per MT and the broken rice fetched $300-335 per MT depending on the different varieties and quality, according to the Myanmar Rice Federation (MRF).

This year, rice shipment to European countries is declining. However, Myanmar is delivering rice and broken rice to China and Bangladesh. The market cools down for now owing to the transport difficulties amid the closure of the border posts. The prices of staple rice have stayed in the upward trend since May. Additionally, the restriction measures to contain the spread of COVID-19 and natural disasters affected the prices. The price is expected to remain bullish in the coming months, as per MRF. High-quality rice is demanded in the domestic market and the price moves in the range of K36,000-68,000 per bag depending on different varieties. The low-quality rice is priced between K23,000 and K28,800 per bag at present. The price indicated a gradual increase. The federation conducted the virtual meeting with the committee members in the regions and states, exporters and the companies concerned regarding the rice production and price stability on 14 August 2021.

They discussed matters related to the possible production drop in the 2021-2022 monsoon season amid the COVID-19 impacts and high input cost and plans for rice donations to those people in need and selling rice at an affordable price near the industrial zones. Consequently, MRF, Myanmar Rice and Paddy Traders Association, rice wholesale centre (Wahdan), traders and brokers sell the rice at a fairer price in Yangon Region starting from 14 September 2021. Ayeyawady Pawsan, Shwebo Pawsan, Pawkywel, short matured rice varieties (90 days) and sticky rice will be sold at a cheaper price between 23,500 and K54,000 per bag. Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops. Weather changes affected irrigation water resource availability in agriculture, as per MRF. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar

unnamed (5)

Sino-Myanmar bilateral trade totals US$8.3 bln this FY

The value of trade with Myanmar’s main trade partner China through maritime and sea trade channels crossed US$8.3 billion in the past ten months (October- July) of the 2020-2021 financial year, including $4.4 billion worth of export and $3.89 billion of import, according to the data released by the Ministry of Commerce.

Myanmar primarily exports agro products to China through the border gates. However, trading in agricultural products is frequently halted on account of China clamping down on illegal trade in border posts. Furthermore, China has been stepping up border control measures to contain the spread of the COVID- 19 since April-end, hindering the border trade. At present, China has banned all the border posts in the wake of the COVID surge in Myanmar.

The value of bilateral trade with China stood at $12 billion in the 2019-2020FY, $11.36 billion in the 2018-2019FY, $6 billion in the past mini-budget period, $11.78 billion in the 2017-2018 financial year and $10.8 billion in the 2016-2017FY, respectively. Rice, various types of peas, sesame seeds, corn, fruits and vegetables, dried tea leaves, fishery products, rubber, minerals and animal products are exported to China, whereas machinery, plastic raw materials, consumer products and electronic tools flow into Myanmar.

Source: The Global New Light of Myanmar

Global dollar price index rises around 93 points and foreign exchange rate is around 1940 kyats per dollar

The global dollar index hit around 92 points on September 15 and the foreign exchange rate in the domestic market was around 1940 kyats per dollar, according to foreign currency traders. The global dollar index, the highest in six months, hit 91.59 points in February. 90.93 points in March; 90.93 points in April; 91.92 points in May; 90.92 points in June; In July, it was around 91.92 points. In January 2021, the lowest and highest monthly exchange rates in the domestic market were 1333-1355 kyats. In February, it was 1340-1475 kyats.

The lowest and highest monthly foreign exchange rates in the domestic market were 1297-1340 kyats in October 2020; In November 1306-1327 kyats; 1326-1405 kyats in December; In January 2021, it was 1333-1355 kyats. In February it was 1340-1475 kyats. On September 15, 2021, the exchange rates of other foreign currencies in the local market were EUR 2,150; S $ 1,380; Malaysian ringgit 425 kyats; Thai Baht 59. On September 15, 2021, the Central Bank of Myanmar sold $ 8 million in a foreign exchange auction, and so far in September it has sold $ 23 million in two installments, with an average exchange rate of 1,750 kyats.

On September 13, the Central Bank of Myanmar sold $ 15 million in a foreign exchange auction. On August 1, 2021, the Central Bank of Myanmar sold another 2.5 million dollars at a foreign exchange auction, with the average exchange rate for the auction being 1,650 kyats per dollar, according to the Central Bank of Myanmar. The Central Bank of Myanmar (CBM) sold another $ 5 million in a foreign exchange auction on August 25, 2021, up to $ 28 million seven times in August, according to data released by the Central Bank of Myanmar. The central bank is responsible for its foreign exchange operations, such as raising the exchange rate in the short term; A rule-based foreign exchange auction is underway to reduce inflation and implement the two-point foreign exchange reserves of the state.

Source: Daily Eleven

zarni_0527

Between July and August last year, Myanmar allowed only one foreign investment worth more than $ 5 million

According to figures released by the Directorate of Investment and Company Administration (DICA), Myanmar was only allowed to invest more than $ 5 million in foreign investment between July and August. Between July and August 2021, Myanmar allowed only $ 5.3 million in foreign investment in the manufacturing sector. Investment in the livestock and fisheries sector increased by more than $ 0.4 million. During the two months, total foreign investment was $ 5.778 million, including increased investment.

In the first 11 months of the current fiscal year, Myanmar has allowed more than $ 3.7 billion in foreign investment, the most in the energy sector, at more than 80 percent, according to the Directorate of Investment and Company Administration (DICA). In the 11 months from October 1, 2020 to the end of August 2021, the fiscal year 2020-2021, Myanmar has approved up to 45 investment projects worth over $ 3.767 billion. Of those, six were allowed to invest in the energy sector, with a total investment of $ 3.121 billion. The maximum allowed is over 82%.

In the agricultural sector, two businesses worth nearly $ 10 million; Six in the livestock and fisheries sector worth more than $ 19 million; In the manufacturing sector, 24 businesses worth more than $ 262 million; A hotel business worth over $ 81 million in the hotel and tourism sector; A business worth more than $ 28 million in the industrial zone development sector; In the service sector, five businesses worth more than $ 103 million; More than $ 133 million in transportation and communications; In the real estate sector, more than $ 8 million has been approved in various sectors. In the 33 years from the 1988-1989 fiscal year to the end of July 2021, Myanmar allowed more than $ 91 billion in foreign investment, according to DICA.

Source: Daily Eleven

Natural gas export tops US$2.17 bln in nine months

Myanmar’s exports of natural gas are estimated at US$2.175 billion in the past nine months (October-June) of the current financial year 2020-2021, the Commerce Ministry’s data showed. The figures indicated a sharp drop of over $1 billion compared to the year-ago period. Natural gas is included in the list of major export items of Myanmar. About six per cent of the country’s total export earnings come from the sale of natural gas. There are 53 onshore blocks and 51 offshore blocks, totaling 104 blocks.

A total of 25 onshore blocks and 31 offshore blocks are being operated under foreign investment. Natural gas extraction is being made at the Yadana, the Yedagun, the Shwe, and the Zawtika offshore blocks as well as onshore drilling blocks. Yearly extraction is elevated to cubic feet in 670.36 billion from 600 billion last year, according to the statement of the Ministry of Electricity and Energy. The Shwe natural gas field, located offshore Rakhine State, was discovered in 2014. Natural gas extracted from the field is exported to China.

The Yadana natural gas project is being carried out by the TOTAL Company, with its pipeline supplying natural gas to Thailand. Natural gas is also extracted in Yedagun, located offshore Taninthayi Region and discovered in 1992. The Zawtika Project in the Gulf of Mottama mainly supplies natural gas to neighbouring Thailand. Production at Yadana and Yedagun is declining, and those projects will be halted in the coming years. Myanmar’s exports of natural gas stood at $3.5 billion in the 2019-2020FY, $3.9 billion in the 2018-2019FY, $3.5 billion in the 2017-2018FY, $3.116 billion in the 2016-2017FY, and $3.445 billion in the 2015-2016FY, as per Commerce Ministry data.

Source: The Global New Light of Myanmar

DSC_0622-copy

MFF striving for sustainable fishery export growth

Myanmar Fisheries Federation (MFF) is attempting to grow fishery export regardless of the COVID-19 disruption on maritime trade, closure of land borders and fuel oil price instability. Chinese market constitutes about 65 per cent of Myanmar’s fishery exports. The federation is making concerted efforts to achieve the target recorded last year, MFF stated. Despite the open season of offshore fishing, Myanmar’s fishery export industry is facing a series of challenges such as fuel oil price instability, the surge in container shipping rate, the closure of border posts, disruption of maritime trade and the COVID-19 negative impacts.

Consequently, it will harm the export sector somehow in thelong term. The fishing industry is experiencing the oil price hike. A 40-feet container costs US$1,400- US$5,000. As a result of this, some businesses are likely to be suspended. The trade route is required to return to normalcy in order to facilitate the trade. If the border post resumes the trade activity, the trade will go smoothly. The closure of the border posts is triggered by the COVID- 19 threats. The cross-border between Myanmar and Bangladesh is still open for trade.

The federation is planning to export fishery products to Bangladesh. Myanma Port Authority is also ensuring smooth freight flow with non-stop operation. The federation is attempting to tackle these fishery export hurdles, said Dr Toe Nanda Tin, senior vice-president of MFF. The marketable fish products, especially fish, shrimp, eel and crab from Taninthayi and Ayeyawady regions and Rakhine State are primarily exported to foreign markets. The federation is turning to the Bangladesh market with export potentials. MFF is working together with the stockholders in the supply chain to have sustainable export growth.

Source: The Global New Light of Myanmar

On September 13, the Central Bank of Myanmar sold $ 15 million in a foreign exchange auction, with an average exchange rate of 1,750 kyat

On September 13, 2021, the Central Bank of Myanmar sold $ 15 million in a foreign exchange auction, with an average exchange rate of 1,750 kyats. On August 25, the Central Bank of Myanmar sold another $ 5 million at a foreign exchange auction, up from $ 28 million seven times in August, according to figures released by the Central Bank of Myanmar. On August 2, 2021, the Central Bank of Myanmar announced a $ 3 million auction. $ 3 million on August 3; $ 4 million on August 4; $ 9.5 million on August 9; $ 12.5 million on August 12; $ 23 million on August 23; It sold for $ 5 million on August 25.

The central bank sold $ 3 million on July 7 at a foreign exchange auction. $ 3 million on the 6th; $ 3 million on the 5th; $ 6 million on the 8th; $ 14 million on July 14; $ 3 million on the 15th; $ 3 million on the 16th; $ 26 million on July 26; $ 27 million on July 27; $ 28 million on July 28; $ 3 million on the 29th; On July 30, it sold for $ 39 million, split 12 times in July and sold for $ 39 million. The Central Bank is conducting a regulatory foreign exchange bid based on its objectives of foreign exchange operations, which are to reduce short-term fluctuations in exchange rates and to supplement the country’s foreign exchange reserves.

Rules for Central Bank Bidding Instructions have been set out and these rules and regulations are in place. Authorized Dealers (AD) Banks, which are foreign exchange bidders participating in the foreign currency auction, in accordance with the instructions. Buying foreign currency with 19 local private banks and 13 foreign bank branches; And sales. The Central Bank of Myanmar’s foreign exchange operations include short-term exchange rate fluctuations; Comparing the exchange rate of Myanmar kyat to US dollar per working day to the previous day exchange rate to reduce the depreciation; By comparison, the percentage devaluation of the Myanmar kyat exceeds the stipulated level (opening a competitive auction for the sale of US dollars, the percentage of appreciation of the Myanmar kyat exceeds the stipulated by the regulation).

Comparing the average Myanmar kyat to the US dollar exchange rate; According to this comparison, the percentage of appreciation of the Myanmar kyat is higher than that set in accordance with the rules and regulations. To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term. Opening an auction to buy foreign currency (dollars) if the percentage of appreciation of the Myanmar kyat exceeds the stipulated rules. 

To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term. Opening an auction to buy foreign currency (dollars) if the percentage of appreciation of the Myanmar kyat exceeds the stipulated rules. To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. 

The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term. To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term. To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term.

Source: Daily Eleven

Domestic gold price falls by K45,000 per tical in two days

The price of precious yellow metal falls back on 13 September, with a drop of K45,000 in two days, domestic gold market’s data showed. The price of pure gold metal hit fresh new peaks in the recent days and it reached the highest of K1,900,000 per tical (0.578 ounce, or 0.016 kilogram) on 11 September tracking the dollar gains on Kyat in the forex
market, whereas it dropped to K1,855,000 per tical on 13 September, according to Yangon Region Gold Entrepreneurs Association (YGEA). On 11 September, the association made six decisions, including control of the market rally, permits for the members to secure transportation to and from gold refineries and for holding a large amount of cash.

The spikes in the gold market were attributed to the political developments, high demand in the domestic gold market, shortage of raw gold metals, the price gain in the international market and the Kyat depreciation. The global gold price stood at only US$1,789 per ounce on 13 September, while a US dollar exchange rate was set at K1,734. As a result of this, YGEA urged its members to regulate trade in order to deal with market volatility. To regulate unsustainable rally in the domestic gold market, the association called for the members to make the gold transaction with only immediate payment, avoid the verbal transactions over calls and halt trading outside the Yangon region, according to YGEA.

In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February. In March, the rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March). The price was registered the highest of K1,455,000 (30 April) and the lowest of K1,389,000 (1 April). The price reached an all-time highest of K1,709,000 (12 May) and the lowest of K1,447,000 in May. The price moved in the maximum of K1,575,500 (11 June) and the minimum of K1,543,000 (19 June).

Last month, it fluctuated between K1,562,300 (26 Jul) and K1,587,000 (K1,587,000), the gold traders said. According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal priced moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019.

Source: The Global New Light of Myanmar