US$20 mln worth of fuel oil to be distributed at fairer prices in third batch

The Consumer Affairs Department under the Ministry of Commerce stated that fuel oil valued at US$20 million will be sold at the subsidized price in the third batch. The fuel importers directly spent $20 million at the reference rate of the Central Bank of Myanmar (CBM) to distribute 30 million tonnes of fuel oil. So far, over 26 million tonnes of fuel oil have been sold. Over 11 million litres of 92 Ron, over four million litres of diesel and 10 million litres of premium diesel have been sold.

At present, the oil is distributed through 136 filling stations in Yangon, Mandalay, Nay Pyi Taw, Ayeyawady, Magway, Bago and Sagaing regions, Mon, Shan, Rakhine and Kachin states. The consumers can complain about overcharging for fuel oil which is sold at the subsidized rate under a public distribution system, the Ministry of Commerce stated. If any overcharging is found, the consumers can complain about it through the contact numbers (09664075683, 09664596327, 09687635943, 09676320826) of the Central Committee on Ensuring the Smooth Flow of Trade and Goods (01 250270) of the Yangon Region Consumer Affairs Department and (09421006794) of the Myanmar Petroleum Trade Association.

In the first batch, $20 million worth of fuel oil were sold, while $13.4 million valued oil was distributed in the second batch. The Ministry of Commerce has purchased $53.4 million worth of fuel at the reference rate of the CBM for the fuel oil sector. The fuel oil was pegged at around K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Then, it remarkably climbed up to K1,245 for Octane 92, K1,295 for Octane 95, K1,220 for diesel and K1,230 for premium diesel in the first week of December. There is a remarkable price gap of K600 per litre, according to the local fuel oil market. Normally, Myanmar yearly imports six million tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

epa07799064 A general view shows trucks loaded containers at Asia World shipping container terminal in Yangon, Myanmar, 28 August 2019. According to figure by Myanmar Ministry of Commerce, Myanmar's total trade with foreign countries reached over 30.593 billion USD as of 16 August 2019 in present fiscal year (from 01 October 2018 to 31 September 2019), of which the export reached 14.69 billion USD while the import was 15.903 billion USD. In 2017-2018 October to September fiscal year, the total trade was 35.895 billion USD and the trade balance had a deficit of 3 billion USD. The most important exports in Myanmar are manufactured products whereas the non-electric machinery and transport equipment are the major products of imports. EPA-EFE/LYNN BO BO

Myanmar records trade surplus on lower import

Myanmar’s lower import nearly two months of the current mini-budget period (October 2021-March 2022) resulted in a positive trade balance of US$103.9 million, according to the data provided by the Ministry of Commerce. Myanmar’s exports surpassed imports in international trade although overall trade value declined in comparison with the same corresponding period of the 2020-2021 financial year. Between 1 October and 26 November, the country’s exports were estimated at $2.2 billion, imports were valued at $2.1 billion this FY.

The external trade drastically sank to $4.3 billion from $4.6 billion recorded in the year-ago period. “This is a positive balance of trade. A trade surplus is harmful only when the government uses protectionism,” a trader points out. Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts. Myanmar’s maritime trade climbed up yet the country witnessed a drop in border trade amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and restrict trading in certain border areas.

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 Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020FY, $1.14 billion in the 2018-2019FY, $1.3 billion in the previous mini- budget period (April-September 2018), $3.9 billion in the 2017-2018FY, $5.3 billion in the 2016-2017FY and $5.4 billion in the 2015-2016FY, according to statistics released by the Central Statistical Organization.

Source: The Global New Light of Myanmar

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Myanmar maritime trade up by $201.69 mln as of 19 Nov

The value of Myanmar’s maritime trade between 1 October and 19 November of the current mini-budget period 2021-2022 jumped to US$2.88 billion, which reflected an increase of $201.69 million as against last FY. The figures soared from $2.679 billion during the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $1.3 billion, imports were registered at $1.56 billion.

Compared to the same period in the 2020-2021 financial year, imports fell by $94.768 million, while exports registered an increase of $296 million. Meanwhile, the value of trade through the border this FY was estimated at $667.6 million, which plunged drastically from$1.34 billion registered last FY. Myanmar’s sea trade generated $19.8 billion out of an overall trade value of $29.5 billion in the FY2020-2021, 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 more than 150 larger ships of above 30,000 DWT (deadweight tonnage) this year after the draft limit is extended up to 10 metres with the new navigation channel accessing to inner Yangon River.

Source: The Global New Light of Myanmar

CBM sells $15 mln on 3 December

The Central Bank of Myanmar (CBM) sold US$15 million on 3 December at an auction market rate of K1,780 per dollar, according to a statement from the CBM. Based on monthly sales of US dollars in 2021, the CBM sold $ 63 million in September, $28 million in August, $39 million in July, $12 million in June, $24 million in May, $12 million in April and $6.8 million in February. But, there was no sale in March. The CBM is conducting an auction for foreign exchange to reduce the fluctuation of foreign exchange rates in a short-term period and fulfilling the needs of foreign exchange reserves.

Rules and directives have been set out for the CBM’s auctions. Following these rules and directives, the CBM is trading the foreign currency with three State-owned banks, 19 local private banks and 13 foreign banks, which are holding authorized dealer-AD licences. The local foreign exchange market’s data in 2021, the highest and the lowest exchange rate is currently fixed around K1,327- 1,345 in January, K1,335- 1,465 in February, K1,420-1,550 in March, K1,550-1,610 in April and K1,585- 1,730 in May, K1,595- 1,620 in June, K1,626-1,670 in July, 1,660- 1,682 in August and K1,696-3,200 in September.

In 2020, the exchange rate moved in the range of K1,465- 1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367- 1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an alltime high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar

Stock market continues downward trend in November

The value of shares traded on the Yangon Stock Exchange (YSX) touched a two-month low of K219 million, with 45,446 shares of the six listed companies traded on the equity market, 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 raised in April with K280 million worth of 42,964 shares. The stocks maintained in the bull market in May with 78,642 shares worth of K432.448 million as well. In June, 79,296 shares worth of K430.285 million were traded on the exchange. Then, the volume of shares traded in equity market dipped 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. It set a record high in September, with over K825 million worth of 193,353 shares. However, the trading volume plunged into 99,837 shares with estimated value of K561 million in October, the YSX’s monthly report showed. 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 equity market. The share prices per unit were closed at K8,500 for FMI, K3,150 for MTSH, K8,000 for MCB, K20,500 for FPB, K2,700 for TMH, K2,850 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 heaven asset gold, rather than make investment amid the COVID-19 crisis and current political conditions. Unexpectedly, people turned to stock market when the prices of gold remarkably gained in September. However, the stock market started going down in October, he continued. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has been able to continue operating without stopping trading. 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 K13.39 billion, were traded on the exchange in2019, 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 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. 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

UNDP survey reports show that the incomes of urban households and households running a business have declined since the political upheaval

According to a UNDP survey, the incomes of urban households and households running a business have declined since the political upheaval. The UNDP, which the UNDP calls a basic population needs survey, said it had interviewed 1,200 households. Nearly three-quarters of households in Myanmar have seen their incomes decline since February 1. 

The survey found that the number of households claiming lower incomes was higher among urban households and those running a business. The non-agricultural business sector was hit hard by the COVID-19 epidemic and the aftermath of February 1. According to a UNDP survey, 42.2 percent of respondents said they had lost revenue from these businesses. As a result of this loss of income, there is more food shortage in households. 

The survey found that within 10 months, the number of households on a diet was significantly higher. To cope with declining incomes, households need to reduce their consumption of non-food items. Withdrawing and using savings; According to the survey, he was involved in selling his property. Two-fifths of respondents who said their savings had been disbursed after February 1 said they had no money left. Of the two-fifths, 46.9 percent are in urban areas and 34.3 percent in rural areas, according to the UNDP.

Source: Daily Eleven

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Local trade difficulties set up after joint checkpoint to crack down on illegal trade

Farmers say they are facing difficulties in transporting local agricultural products after the opening of a bridge checkpoint near Hlaing Wa village on the outskirts of Kawkareik to curb illegal trade in imports from the Myawaddy border to the local market. Min Thu, a private egg farmer in Myawaddy, said that the checkpoint at the Kawkareik checkpoint was not subject to strict checks on the illegal import of imported goods, but was restricted to the export of local products. “Yesterday, we left the Myawaddy area at around 900 am and were transported to Moulmein in a small vehicle,” he said. 

When we arrived at the checkpoint at Kawkareik Bridge, we were not allowed to cross the truck. Gate officials say local products will only be taxed with the approval of the local Department of Agriculture and trade taxes. Now it is not easy to transport local products from one city to another, ”said Min Thu. In Myawaddy Township, besides paddy, maize; beans , Watermelons are also cultivated by local people and transported to townships for local consumption.

A farmer said that although the Myawaddy border is said to be a checkpoint to control the flow of illegal border goods to increase legal trade volume, farmers are also facing difficulties as they control local agricultural products. A border trader from Myawaddy said, “To increase legal trade; Increasing state revenue is not enough just by opening checkpoints to curb illegal trade. “Traders need to get on the right track. If the tariffs are easy and cheap, all border traders will get on the right track.” Saw Myint Oo, chairman of the State Council, and members of the council opened a joint checkpoint on December 1 to crack down on illegal trade at the site of a broken bridge on the Thai-Burmese border trade route in Kawkareik.           

Source: The Global New Light of Myanmar                              

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Market situation still unknown despite watermelon export to China

Although Myanmar exported the watermelon to China, the market situation is still unknown, according to the fruit commodity depot. Currently, about 21 fruit loaded trucks reached in Wamding haven’t yet arrived at the fruit market. Consequently, the actual cost and price in China side are not identified yet. During the COVID-19 period, although the trucks were reached on the Chinese side through the border checkpoints, they should be stopped in the red zone for 24-hour quarantine, customs clearance in the yellow zone and re-tested and obtained COVID-19-free certificate in the F zone. Besides, the Chinese’s customs system has been transformed from a border trade system to a normal trade system.

It has been also reported that the export tax will be levied on the overseas shipping system which has been delayed due to the pending changes in China’scustoms system, according to the Khwanyo Fruit Warehouse. The traders head that cost of customs duty will be around 800- 1,000 yuan per tonne. The required documents and banking system need to be updated even with the normal trading system. Now, they are negotiating with the Chinese authorities. It will take time, said a trader from the Khwanyo Fruit Warehouse. Therefore, the watermelon growers and traders should only harvest after receiving and observation the information. Currently, there are about 500 fruit loaded trucks in Shwe Lwin Inn ground in Kyinsankyawt border checkpoints.

Thus, the fruits trucks reached in Muse 105 th mile are temporally stopped to transport Kyinsankyawt checkpoint, according to the fruit traders. The truck’s load of watermelon will be brought to China via Chinese trucks after they unload their goods in Myanmar. Last 26 September, the Kyinsankyawt border post between Myanmar and China has reopened on a trial run. Myanmar’s goods weighing five containers can be delivered to China then. On 27 November, two truckloads of watermelon were put into a container and sent to China. During the COVID-19 period, the transport charges are over one time higher than the previous rate, it is learnt. Transport charges were around K800,000 to one million, whereas it costs approximately K2 million for now. Traders cannot expect trade facilitation according to the changes in China’s policy during the COVID-19 pandemic. If the restrictions are eased and negotiation goes smooth, the trade will go back to normality.

Source: The Global New Light of Myanmar

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Employment in the domestic sector fell again last November, cutting jobs during the last 21 months, according to the survey

According to the IHS Markit Myanmar Manufacturing PMI (Manufacturing Purchasing Manager’s Index) released on December 1, employment in the domestic sector fell again last November and cut jobs in the last 22 months in the last 22 months. Employment rates fell again in November, with 21 job cuts in the last 22 months, according to the survey. Despite low production demand and reports of workers returning to their homes, most respondents pointed out that workers were voluntarily leaving in search of better-paying positions. As a result, companies have been particularly difficult to find skilled workers and raw materials, and surplus work has risen sharply, the survey said.

The surplus increase was the second-highest in the survey’s history, surpassing the rate seen in October. Imports rose 14 consecutive months, and pressure on production costs continued to rise in November. In addition to the scarcity of raw materials, these conditions have been linked to higher oil prices and higher freight rates. Due to the epidemic restrictions and the lack of access to imports, supplies continued to be cut off in November, significantly increasing the average supply period for imports. However, the Myanmar Manufacturing PMI rose to 46.7 in November. The October PMI was just 43.3.

Myanmar’s manufacturing PMI rose slightly in November, but remained below the unchanged PMI of 50. Myanmar’s economy remains one of the worst-hit economies in Asia in 2021. According to the IHS Markit Myanmar Manufacturing PMI released on November 1. Of the ASEAN countries, Myanmar was the only ASEAN country to decline in manufacturing last October, according to the IHS Markit ASEAN Manufacturing PMI Index released on November 2. The PMI survey for the above ASEAN countries was conducted in seven countries including Singapore, Malaysia, Indonesia, Philippines, Thailand, Vietnam, and Myanmar. Purchasing Manager’s Index (PMI) New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. The survey is based on original data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

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Number of companies registered on MyCO stands around 7,000 in 11 months: DICA

The number of companies registered on the online registry system, MyCO, reached 6,928 in the past 11 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 keeping in line with the Myanmar Companies Law 2017. During the January-November 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, 733 in September, 1,027 in October and 936 in November, 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, 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. 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) under Section 97 of the Myanmar Companies Law 2017. Under 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, under Section 53 (A-1) of the Myanmar Companies Law 2017.

As per DICA’s report, about 17,000 companies were suspended so far for failing 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 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