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2021 Union Taxation Law

Press Release

The State Administration Council approved and issued the Union Taxation Law as the State Administration Council Law No 27 on 30 September 2021. The law came into effect on 1 October 2021.

Source: The Global New Light of Myanmar

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Myawady border trade up by $705 mln in FY2020-2021

The border trade through Myawady between Myanmar and Thailand climbed up to US$1.9 billion between 1 October and 24 September in the financial year 2020- 2021, reflecting an increase of $705.47 million as against a year-ago period. The trade through Myawady border stood at over $1.19 billion in the corresponding period of last FY2019-2020. Myawady-Maesot border trade remains normal amid the COVID-19 restrictions, according to the Myawady Chamber of Commerce. We have experienced trade suspension via Myawady in October 2020. The halt in trading undoubtedly harms the traders and lorry drivers from both sides. It is good that trade does not stop at the present time, said a trader from Myawady.

At present, Myawady border does not have trade barriers except for transaction problem, as per the Myanmar Corn Industrial Association. Myanmar is currently shipping thousands of tonnes of corn to Thailand through the Myawady land border every day. Myanmar is allowed for corn export between 1 February and 31 August with Form-D, under zero tariff. Myanmar corn exports were exempted from tax between February and August. Thailand imposed 73 per cent of tax on corn import to protect the rights of their growers if the corn is imported during the corn season of Thailand, in accordance with the notification of World Trade Organization regarding corn import of Thailand.

During last budget year, Myanmar has increasingly exported corns to Thailand through the Myawady land border. Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border crossings between Myanmar and Thailand during October and May period in the FY2019-2020, said an official of the Ministry of Commerce. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Hteekhee, Myeik, Mawtaung and Meisei. Majority of the border trade with Thailand is conducted via Myawady. Myanmar primarily exports corn, natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), 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

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Six-month National Planning Law of 2021-2022 Financial Year

Press Release

The State Administration Council approved and issued the National Planning Law for the six months of the 2021-2022 financial year as the State Administration Council Law No 26 on 30 September 2021. The law came into effect on 1 October 2021.

Source: The Global New Light of Myanmar

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Local currency revaluates these days, while gold price drops

The value of local currency regains in recent days in the local forex market. Similarly, the prices of gold also dropped, according to the local forex market. On 28 September, the exchange rate on the US dollar hit an all-time high of over K3,000 in the black market, whereas the rate fell to over K2,000 on 6 October, showing a significant decrease of K1,000 within days. The prices of a pure gold metal jumped accordingly to a record high of K2.22 million per tical (0.578 ounce, or 0.016 kilogramme) on 28 September, while a yellow metal was priced at only K1,930,000 per tical on 6 October, according to the Yangon Region Gold Entrepreneurs Association (YGEA). The price is therefore down by K270,000 per tical these days. YGEA has urged its members to regulate trade in order to deal with market volatility. The association has curbed the amount of gold that investors can trade. It permits only 10 ticals for daily trading, as per 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). It fluctuated between K1,562,300 (26 July) and K1,587,000 (August). The price of gold reached the lowest of K1,572,800 (3 August) and the highest of K1,698,000 (31 August).

Last month, the price of pure gold metal hit a fresh peak of K2,220,000 per tical (28 September) and it was priced the lowest of K1,703,500 per tical (1 September), 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 high of K1,300,000 on 5 September 2019. 

Source: The Global New Light of Myanmar

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Stock trading in equity market records highest in September

The shares traded on the Yangon Stock Exchange (YSX) rose to a record high in September 2021, with over K825 million worth of 193,353 shares of the six listed companies, 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 were maintained in the bull market in May with 78,642 shares worth K432.448 million as well. In June, 79,296 shares worth K430.285 million were traded on the exchange. Then, the volume of shares traded in the equity market plunged into 36,855 shares in July 2021 and the trading value also slipped to K198 million.

It climbed up in August 2021 compared with those registered in the last two months, with over K300 million worth of 49,191 shares traded on the exchange, the YSX’s monthly report showed. Under Section 4 of the Trading Business Regulations, the stock trading was closed from 16 to 20 August 2021 as the long public holidays for COVID-19 prevention, control and treatment activities. The market resumed on 23 August 2021 as usual. Last month, 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), the Ever Flow River Group Public Co., Ltd (EFR) and Amata Holding Public Co., Ltd. (AMATA)— were traded in the equity market. The share prices per unit were closed at K8,800 for FMI, K3,200 for MTSH, K8,000 for MCB, K22,000 for FPB, K2,700 for TMH, K2,950 for EFR and K5,000 for AMATA, respectively.

The stock markets worldwide have reported their largest declines since the 2008 financial crisis. Similarly, the local equities market was also scared by the COVID-19 crash in the previous months, a market observer points out. People like to keep emergency savings and purchase the safe-haven asset gold, rather than make investments amid the COVID-19 crisis and current political conditions. Unexpectedly, people turned to the stock market when the prices of gold remarkably gained in September, he added. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has been able to continue operating without stopping trading. Additionally, the stock market also rose in August. In 2020, the value of stocks traded on the exchange reached a peak of K1.48 billion in February, whereas 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. 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 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