CBM sells $15 mln at FX auction rate on 20 January

The Central Bank of Myanmar (CBM) sold US$15 million at its FX auction on 20 January 2022, bringing a total number of sales of $65 million in January five times, according to a statement of the CBM. The Central Bank of Myanmar sold $15 million each on 7, 12 and 20 January and $10 million on 13 and 14 January.

According to monthly purchases and sales of US dollars from January to December in 2021, the CBM sold $6.8 million in February 2021, a foreign exchange auction, but did not sell in March., The CBM sold also $12 million in April, $24 million in May, $12 million in June, $39 million in July, $28 million in August, $63 million in September, $110 million in October, $31 million in November and $118 million in December.

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. This CBM’s move is aimed at governing the market volatility and strengthening the local currency value.

Source: The Global New Light of Myanmar

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Rubber price slightly soar to around K1,200 per pound

The rubber prices have faintly mounted to around K1,200 per pound (0.45 kilogramme), according to the rubber traders. The domestic rubber was priced at below K1,000 per pound in late 30 December 2021. But the price of local 3 rubber fetched K1,150 per pound while the local 3 ribbed smoked sheet (RSS) hit K1,170 pound on 22 January 2022. Due to the market demand and the Kyat revaluation in the local foreign market, the rubber price is still rising in the market, it is learnt. Presently, there is demand from China and the dollar exchange rate against Myanmar Kyat stood at around K2,000 per dollar.

Consequently, although the resumption of the rubber plantation starting from last September and the availability of raw rubber in the market has increased, the price of rubber is unlikely to fall lower than K700 as last year due to the rising market demand and international exchange rate, according to the rubber traders. Nevertheless, the prices of raw rubber materials are unlikely to rise to continue in the future. The local 3 or RSS5 lower quality rubbers are vastly produced in Mon State.

As China is also purchasing these low-quality rubbers mostly, the price is likely to fluctuate around K1,000 per pound, the rubber trader predicted. Regarding the trade route to China, the previously-closed Chinshwehaw border trade post has permitted re-imports of industrial agricultural raw products such as sugarcane, rubber, tragacanth gum herb and cotton, making it easier to export rubber products. Similarly, the Kyinsankyawt border which has been shut down earlier was reopened on 26 November and the rubber is being exported through it. Rubber is primarily cultivated in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar.

As per 2018-2019 rubber seasons’ data, there are over 1.628 million acres of rubber plantations in Myanmar with Mon State accounting for 497,153 acres, followed by Taninthayi Region 348,344 acres and Kayin State with 270,760 acres, according to the MRPPA. Besides, about 300,000 tonnes of rubber are produced annually across the country. Seventy per cent of rubber made in Myanmar goes to China. In addition to China, the country also shipped rubber to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan and other countries. In the last FY2020-21, the country generated $449.10 million from the export of raw rubber to foreign countries, according to the official statistics of the Ministry of Commerce.

Source: The Global New Light of Myanmar

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Information release on detection of SARS-CoV-2 Omicron variant

The Ministry of Health is continuously conducting “COVID-19 Molecular Disease Surveillance”, and releasing information on the detection of SARS CoV-2 Omicron variant from those who return by relief flights in a timely manner.

The laboratory samples of the COVID-19 virus of the returnees were sent to the National Health Laboratory and No 1 Defence Services General Hospital (1000-bed) on 20-1-2022 and the SARS-CoV-2 Omicron variant was found in 28 laboratory samples. 28 Omicron cases were Myanmar nationals — 11 entered the country from Malaysia, six from the Philippines, three from Thailand, four from Singapore, two from India, one each from the UAE and Russia by relief flights.

The patients are admitted to the designated hospitals for medical treatment and the passengers who returned together with them now undergo strict quarantine and lab tests. Therefore, it is announced that the ministry is stepping up the COVID-19 disease monitoring and control measures plus disease prevention, control and treatment activities.

Ministry of Health

Foreigners hold over 4.48 mln shares in equity market as of 19 January

Foreign investors have purchased over 4.489 million shares of four listed companies on the Yangon Stock Exchange (YSX) so far, according to statistics released by the exchange. The Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. At present, 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, Ever Flow River Group Public Co., Ltd (EFR) and Amata Holding Public Co., Ltd (AMATA) — are available for local investors for trading. Foreigners invest in FMI, MTSH, TMH and EFR on the exchange. FPB is for block trade only. The foreign investors are about to reach the upper limit of 14 per cent for shareholding with FMI and consequently, the status of buy order acceptance is suspended for now. The foreign shareholding ratio of the companies on the exchange, except FMI, is less than one per cent.

As of 19 January 2022, foreigners hold over 4.45 million shares of FMI, over 27,897 shares of MTSH, 5,445 shares of TMH and 3,002 shares of EFR, YSX’s statistics indicated. The SECM, under the Ministry of Planning and Finance, issued a notice on 12 July 2019, announcing that foreigners would be allowed to invest in shares listed on the YSX. After opening bank and securities accounts, an investor can send buying/selling orders under the stock trading rules stipulated in the Trading Business Regulations, the SECM notified. Foreign participation would entail better capital inflows, long term and sustainable investment, encourage good corporate governance, and support market orientation, YSX stated. Regarding share trading, foreign investors must strictly comply with the rules stipulated by the Central Bank of Myanmar. The security companies will monitor the daily trades of foreigners, in keeping with the rules and regulations, so that they do not exceed the limit set for each listed company.

Under Section 42 (a) of the Securities and Exchange Law and Section 4 of the Trading Participant Business Regulations, the YSX has granted trading qualifications to the following securities companies —Myanmar Securities Exchange Centre Co. Ltd. (MSEC), KBZ Stirling Coleman Securities Co. Ltd. (KBZSC), CB Securities Limited (CBSC), AYA Trust Securities Co. Ltd. (AYATSC), KTZ Ruby Hill Securities Co. Ltd. (KTZRH), and UAB Securities Limited (UABSC).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 the exchange, 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 emerg.

Source: The Global New Light of Myanmar

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Lweje-Laiyang border post reopened after six-month closure

Sino-Myanmar Lweje border post which was suspended in mid-July 2021 during the spike in COVID-19 cases was reopened at 11:45 am on 17 January after six months, U Myint Zaw Moe, Assistant Director of the Department of Trade, formally opened the checkpoint by sprinkling scented water onto the trucks.

Following the three virtual negotiations with Chinese counterparts, the border post resumed its operation on 17 January in line with the COVID-19 preventive measures.

Myanmar will deliver sugarcane and tissue-culture banana to China via Lweje on a trial run, whereas fertilizer, garment raw materials and household goods are primarily imported into the country. According to a mutual agreement, every driver and conductor must get vaccinated two times.

Source: The Global New Light of Myanmar

Telegraphic Transfer system permitted for gold transaction below US$50,000

The international remittance for gold transaction valued at below US$50,000 is allowed to use Telegraph Transfer (TT) system, said U Myo Myint, Chair of the Yangon Region Gold Entrepreneurs Association. This move will revive gold export market, he continued. “Traders are no longer face hurdles in gold export. They are prepping for export. The goldsmith businesses also resume their operations. Transportation agents also embark on export procedures,” he was quoted as saying. Nevertheless, the transaction worth above $50,000 can be done only with Letter of Credit (LC).

Those who want to export gold can inquire the procedures at the One-Stop Service Centre. They can also request the YGEA for certain matters. As per the notification released by the Ministry of Commerce on 12 August 2020, transaction for gold export and import can be done only through LC system. Myanmar is placed on the grey list by the Financial Action Task Force (FATF), the inter-governmental body that sets anti-money laundering standards. Therefore, the country needs to monitor on the gold and jewellery exports and imports in order to ensure there is no illegal income.

As per the notification released by the according to the Trade Department, payment method was changed to LC.
The payment using LC can take about two months, cost banking service changes by two sides, and increase the charges for security matter in transport. Consequently, gold trading in the international market has also stalled due to volatile prices, YGEA stated. Starting from 20 December, TT system was given the green light for transaction valued at below $50,000 in gold exports. The transaction worth higher than that are permitted only with LC, Trade Department notified. Gold and other jewelleries are primarily purchased by Japan and the Republic of Korea, and other tourists also buy them, the YGEA stated. 

Source: The Global New Light of Myanmar

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Eight Chinese enterprises put $93.4 mln of FDI into Myanmar in past three months

Eight China-listed enterprises brought in US$93.4 million into Myanmar between October and December 2021 of the six-month mini-budget period, according to data released by the Directorate of Investment and Company Administration (DICA).

China is the top source of FDI so far and Singapore is placed as the second-largest investor of Myanmar. Those enterprises listed from China, Singapore, India, Republic of Korea, France, Hong Kong (SAR) and China (Taipei) also made investments this year. Chinese companies primarily invested in the manufacturing sector.

Myanmar has drawn foreign direct investment of more than US$2.46 billion during the October-December period, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, DICA’s statistics indicated. Of 17 foreign enterprises permitted and endorsed by MIC and the respective investment committees in the half of the mini- budget period, 11 enterprises pumped FDI into the manufacturing sector. Agriculture, power, construction, hotels and tourism received each project and other service sectors attracted two projects.

Source: The Global New Light of Myanmar

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Direct Yuan-Kyat trade assures traders in Muse border

The use of Yuan or Kyat in the bilateral transaction is officially allowed in the border areas between Myanmar and China, and traders can legally open a foreign currency account at the designated banks, ensuring trade finance security for the traders engaged in Muse cross-border trade with China, said U Min Thein, vice-chair of the Muse Rice Wholesale Centre. “China often freezes accounts of Myanmar traders, supposedly linked to illegal activities. The traders suffered from it. If they lift the freeze, payment is made in full.

If not, traders cannot help. Now, the bank accounts can be legally opened and cannot be frozen as it is white money. It will definitely facilitate transaction in import and export,” he elaborated. The direct Yuan-Kyat trade platform commenced on 12 January 2022. Traders can open foreign currency accounts linked to Bank in China, CBC and BOC, by depositing 30 Yuan (which is equivalent to K10,000) at Myanmar Economic Bank in Muse. “Some traders might face challenges to do so as they used to make payments through private banks.

There might be red tape in opening accounts. However, this platform will assure the traders in the long term,” U Min Thein shared his opinion. This move is aimed to boost bilateral cross-border trade, facilitate trading and bilateral transaction, increase the use of domestic currency and lessen the reliance on the US dollar. The direct Yuan-Kyat payment has no impact on the domestic freight forwarding, a Mandalay-Muse freight forwarder. China shut down all the border posts with Muse city in the wake of COVID-19 impacts. Of them, Wamting and Kyinsankyawt border posts between Myanmar and China resumed operations. Mang Wein and Kyalgaung posts have still suspended the trade.

Source: The Global New Light of Myanmar

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From July 2021 to early January 2022, up to 2,200 companies were deregistered according to the Myanmar Companies Law

From July 2021 to early January 2022, up to 2,200 companies were deregistered under Section 430 (f) of the Myanmar Companies Law, according to figures released by the Directorate of Investment and Company Administration. 300 companies in July 2021; 200 companies in August; 400 companies in September and 400 companies in October; 400 companies in November; 40 companies in December; As of January 3, 2022, there are a total of 2,200 companies with 100 companies.

Companies that fail to submit an annual return under Section 97 of the Myanmar Companies Law will be removed from the register under Section 430 (f) of the Myanmar Companies Law (Struck.Off) by the Directorate of Investment and Company Administration from the date of issuance of these notices. Companies registered with MyCO are required to submit an Annual Return (AR). The last date to submit the Annual Return is stated on the company profile, so you have to pay the registration fee of 50,000 kyats before that date. Late Fee of 100,000 Kyats must be paid within 28 days after the date of submission of Annual Return. If the Annual Return is submitted after 28 days, it will be suspended.

The company will be deregistered if the AR is not submitted for six months after suspension. If the company is revoked and wants to revive its name, the company will have to file a 1-5 re-submission on MyCO with a court order. The Department of Investment and Company Administration (DICA) has issued a statement urging special attention to be paid to the annual return report, as the company will be tarnished by the costs of applying for a waiver in the event of a Struck Off listing and failing to comply with the Myanmar Companies Law. Section 97 (a) of the Myanmar Companies Law stipulates that all companies must submit to the Registrar every year at least once a year for two months from the date of its formation and thereafter, but not later than one month after the expiration of the year of incorporation.

Source: Daily Eleven

An employee demonstrates samples of Sputnik Light vaccine against the coronavirus disease (COVID-19) developed by the Gamaleya Research Institute of Epidemiology and Microbiology, in this still image taken from video released May 6, 2021 by the Russian Direct Investment Fund (RDIF). The Russian Direct Investment Fund (RDIF)/Handout via REUTERS

Second batch of Sputnik Light COVID-19 vaccine arrives in Yangon

Officials from the Yangon Region Public Health and Medical Services Department received a total of 512,000 doses of Sputnik Light COVID-19 vaccines purchased from the Russian Federation yesterday morning at the Yangon International Airport.

Myanmar purchased a total of 1 million doses of the Russian-made COVID-19 vaccines, nearly a half of which 488,000 doses were transported to Myanmar in the first batch on 13 January, and this is the second batch.

Sputnik Light COVID-19 vaccine requires only one dose per person and will greatly contribute to the rapid coverage of the COVID-19 vaccine in Myanmar. The vaccines have been stored at the Central Vaccine Store Depot in Yangon and will be distributed to regions and states.

Source: The Global New Light of Myanmar