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
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
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
Due to the rising price of diesel, electricity will be charged at 800 kyats per unit in Ye Township from this month, according to Myat Thura, a private electricity supplier to Ye Township and surrounding villages. For the current October, the electricity meter price will be changed to 800 kyats per unit. The increase in meter prices has made the people who use electricity more burdened. According to the current diesel price, the price per meter is not fixed. An official from Myat Thura Company, said that the price of a liter of diesel used to be 220,000 kyats, but now it is 305,000 kyats per liter.
If there is an increase in the meter price, they have to negotiate with the relevant authorities. This is a time when the public is in a tight spot, which can be a problem for consumers. If diesel prices fall again, the meter price will be reduced. They simply want the government to provide electricity as soon as possible. The people in Ye Township will be comfortable if the government gets electricity soon, according to an official from Myat Thura Company. During COVID-19 last year, the minimum price was 350 kyats per meter, coordinated by the previous state government.
Later, it was increased to 500 kyats per unit, and for last August, the electricity meter price was 600 kyats per unit, according to locals. Right now, the price of electricity has gone up a lot. Those who work with electricity are in even more trouble. There is no clue whether their company can match the current price of diesel or not. For this reason, some villages being lit only at night. It is learned that Myat Thura Company has to use more than 60 barrels of diesel to provide electricity for 36 hours. At present, the price of a barrel of diesel is over 300,000 kyats, so the company may have a problem, said a Ye resident. Electricity will cost as much as you use. Businesses that use electricity will also have to go up in price. At this time, ordinary people can spend more.
Source: Daily Eleven
The value of Myanmar’s maritime trade over the eleven months (1 October-24 September) of the financial year 2020- 2021 sank to US$19.54 billion, which is a 24 per cent drop compared with the same corresponding period of FY2019-2020. The figures plunged from $25.8 billion during the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $8 billion, imports were registered at $11 billion. Compared to the same period in the 2019-2020 financial year, imports fell by $4 billion, while exports registered a decrease of $2 billion. The maritime trade fell by $6.27 billion as of 24 September as against last year.
Meanwhile, the value of trade through the border this FY was estimated at $9.69 billion, a decrease of $832.7 million as against a year-ago period. Myanmar witnessed aslump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and the political changes. For maritime trade, disruption in the logistic sector and the impact of COVID-19 on global shipping scaled-down Myanmar’s maritime trade somehow. The country’s total external trade over the past ten months touched a low of $26.1 billion, which plunged from $33 billion recorded in a year-ago period.
Myanmar’s sea trade generated $29.24 billion out of an overall trade value of $36.3 billion in the last FY2019-2020, the Ministry of Commerce’s statistics indicated. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products, while it imports capital goods, consumer goods, and raw industrial materials. The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade and includes the Yangon inner terminals and the outer Thilawa Port. Yangon inner terminal and the outer Thilawa Port received over 152 larger ships of above 30,000 DWT (Deadweight tonnage) in the past five months (Feb-June) this year after the draft limit is extended up to 10 meters with the new navigation channel accessing to inner Yangon River.
Source: The Global New Light of Myanmar
A total of 8.264 million people had been vaccinated with the COVID-19 vaccine as of 1 October, according to the Ministry of Health. As of 1 October, 3.863 million people had been received full doses of vaccine and 4.4 million people had been received one dose of vaccine in Myanmar, totalling 6.264 million people, according to the Ministry.
As per the purchase contract of 24 million doses of Sinopharm vaccines from China, the country has already received eight million doses of vaccines so far including four million doses that arrived at Yangon International Airport on 12 September and another four million doses on 26 September, according to the Ministry’s report.
If the vaccine arrives, the country will vaccinate 12 million people this year. The targeted group will include people between the ages of 40 and 64. Sinopharm and Sinovac vaccines have been approved by the WHO for emergency use. There are a total of 36.9 million people the age of over 18 needed to be vaccinated and, 4.99 million of them are vaccinated once or twice. The completion rate is close to 13 per cent, according to the ministry.
Source: The Global New Light of Myanmar
The number of companies registered on the online registry system, MyCO, reached over 4,965 in the past nine months this year, 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, in keeping with the Myanmar Companies Law 2017. During the January-September period, the number of registered companies on MyCO was 1,373 in January, 188 in February,163 in March, 254 in April, 686 in May, 775 in June, 433 in July, 360 in August and 733 in September, the DICA’s statistics showed. At present, 100 per cent of the applicants are using the online registration platform, the DICA stated.
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. 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, data of the DICA showed. When the online registry was launched in August 2018, a total of 1,816 new companies have taken registration 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. In addition, 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. Section 266 (A) of the Myanmar Companies Law 2017 mentions that 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, about 17,000 companies were suspended so far 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 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 status 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. If a company fails to restore its status within six months of suspension, the registrar will strike its name off the register, according to the DICA notice.
Source: The Global New Light of Myanmar
Myanmar’s exports of natural gas are estimated at US$2.194 billion in the past ten months (October-July) of the current financial year 2020-2021, the Commerce Ministry’s data showed. 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, according to the statement of the Ministry of Electricity and Energy. The Shwe natural gas field, located offshore from 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 from 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