YSX records K282 mln worth of share trading in January

A total of 61,435 shares by seven listed companies were traded on the Yangon Stock Exchange (YSX) in January 2022, with an estimated value of K282 million, according to the monthly report of the YSX. At present, shares of seven 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 slightly fell to K8,000 for FMI, K2,950 for MTSH, K8,000 for MCB, K19,500 for FPB, K2,650 for TMH, K2,850 for EFR and K5,400 for AMATA, respectively, in January.

People like to keep emergency savings and purchase the safe-haven asset gold and hard currency, rather than make investments amid the COVID-19 crisis and political changes. Regardless of the collapse of the stock markets worldwide, the local equities market has been able to continue operating without stopping trading. Additionally, 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. With a view to achieving a better understanding of legal aspects and registration criteria of Myanmar public companies, a free webinar for PLB is scheduled to be held in February 2022, according to the YSX Quarterly E-Newsletter.

Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market since 20 March 2020. Only K4.63 billion valued 887,969 shares by seven listed companies were traded on the exchange in 2021, showing a significant drop of 63 per cent as against 2020, according to the annual report released by the exchange. In 2020, K12.6 billion worth of 1.87 million shares by six listed companies were traded on YSX, whereas over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019. 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 webinars and training courses.

Source: The Global New Light of Myanmar

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Myanmar ships over 1 mln MT of rice in past four months

Myanmar delivered more than 1.07 million metric tons of rice and broken rice in the past four months of the current mini-budget period (October 2021-March 2022), according to the Myanmar Rice Federation (MRF). Myanmar has exported rice to 27 foreign markets so far. China is the main buyer of Myanmar rice. Meanwhile, Myanmar shipped broken rice primarily to China, followed by the Netherlands, Belgium, Spain, France and three other countries. The volume of rice and broken exports stood at over 216,375 MT in October 2021, 285,223 MT in November, 301,033.9 MT in December and 269.215.9 MT in January 2022, respectively, MRF’s data showed.

The prices of low-quality white rice varieties were approximately valued US$330-355 per MT depending on the different varieties and quality. The export price of Myanmar’s rice was relatively lower than the rates of Thailand and Viet Nam. Yet, the prices were higher than those market prices of India and Pakistan, MRF’s data showed. At present, traders turned to maritime trade for rice export as COVID-19 restrictions hindered the trading activity through the border posts. Myanmar shipped rice and broken rice to China, regional countries and European Union countries through maritime trade.

Trading in the domestic market is quite sluggish amidst the excess supply. The rice worth K43,000-K50,000 per bag is highly demanded in the domestic market. The prices of high-quality rice move in the range of K34,500-K58,000 per bag, the Bayintnaung Rice Wholesale Centre’s price data indicated. Myanmar generated over $800 million from rice exports in the financial year 2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes. Myanmar generated US$700.13 million income from exports of 1.87 million tonnes of rice and broken rice in the past FY2020-2021 (October-September) amidst the border trade disruption triggered by the COVID-19 negative consequences, as per the statistics released by the Myanmar Customs Department.

Source: The Global New Light of Myanmar

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Border trade down over US$1.36 bln

Trade between Myanmar and its four neighbouring countries has reached over US$1.99 billion this mini-budget period to date, according to the statement of the Ministry of Commerce. Myanmar shares borders with China, Thailand, Bangladesh and India.

The country conducts border trade with neighbouring China through Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung, with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei checkpoints, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed border crossings, respectively. Exports of these four countries from the start of October 2021 until 21 January 2022 generated $1.43 billion.

On the same period, the country imported $568.3 million worth of goods. From 1 October to 21 January of the 2021-22FY, the total border trade value amounted to $1.999 billion, down $1.36 billion compared with the same period last year. This time last year, the border trade was valued at $3.36 billion. Myanmar’s major export items are farm, animal, marine, forest, mining, CMP and other products. Myanmar mainly imports capital goods, industrial raw materials, personal goods and CMP raw materials. 

Source: The Global New Light of Myanmar

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Lower import drives trade surplus as of 21 Januar

Myanmar’s lower import as of 21 January in the current six-month mini-budget period (Oct 2021-Mar 2022) resulted in a positive trade balance of US$299 million, according to data provided by the Ministry of Commerce. Myanmar’s exports surpassed imports in international trade although overall trade value declined compared to the same corresponding period of 2020-2021 financial year. Between 1 Oct and 21 January, the country’s exports were estimated at $4.68 billion, imports were valued at $4.38 billion this FY.

The external trade drastically sank to $9.06 billion from $9.95 billion recorded in the year-ago period. 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.

Moreover, import fall led to the largest trade surplus of $677 million in the last FY2020-2021, with $15.36 billion worth of exports outperforming $14.69 billion worth of imports. 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. The ministry has already notified the importers of the compulsory licencing for some imported items. Import licence can be sought from 1 February 2022 with an aim to respond to the post-COVID-19 economic recovery, ensure systematic import and export process and manage foreign capital inflows.

Source: The Global New Light of Myanmar

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Companies registered on MyCO exceeds 1,000 in Jan 2022: DICA

The number of companies registered on the online registry system, MyCO, topped 1,000 in January 2022, 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 under the Myanmar Companies Law 2017. The figures of registered companies stood at 8,011 in 2021, 15,080 in 2020, 17,380 in 2019 and 8,506 in 2018. The number of registered companies has reached 46,377 as of 31 January 2022 since its establishment on 1 August 2018 as per statistics of the DICA.

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 16,000 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 has notified that any company which fails to submit its AR within 13 months will be notified of its suspension (I9A). 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

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Myanmar, China signs SPS protocol agreement for maize export

Ministry of Agriculture, Livestock and Irrigation and the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ) signed an agreement on 31 January 2022 regarding SPS Protocol (Sanitary and Phytosanitary Protocol) for biosecurity, for Myanmar to legally ship maize to China on a trial run. The SPS protocol is a must for legitimate export to China, the main trade partner of agricultural products with Myanmar.

According to the agreement, Myanmar can export maize grains to China through maritime route and border channels. This agreement will boost the legitimate agro trading between Myanmar and China and bring about the interest of the growers. MoALI and GACC officials signed the agreement to meet SPS protocol requirements on exports of rice and broken rice in January 2020 during Chinese President Xi Jinping’s visit to Myanmar, along with the fruitful negotiation of the live cattle trade.

At present, the establishment of an animal quarantine station is underway in the respective border posts to continue the live cattle trade. One station has been set up in Kutkai Township. Furthermore, a series of negotiations between MoALI and Chinese counterparts are being undertaken for soybean, cassava and sweet potato. Additionally, SPS measures for pineapple, avocado, pomelo, lime and areca nuts are still under negotiation for now. Myanmar conveyed agricultural products, livestock and fisheries worth of US$5.427 billion to China in the 2020-2021 financial year. 

Source: The Global New Light of Myanmar

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Forest Department calls for competitive bidding to harvest edible bird nests

The Forest Department under the Ministry of Natural Resources and Environmental Conservation called for competitive bidding to seek a three-year working permit for harvesting the edible bird nests which were out of stock during the spike of COVID-19 cases in Myanmar. “The islands of Myeik Archipelago in Taninthayi coastal region are habitats of swiftlets. The Forest Department has been managing those islands for years. Earlier, it granted the work permit once a year. Starting from 2020, the department gave green light to this business once every three years,” said an official of Taninthayi Region Forest Department.

The winner of the auction for harvesting the bird nests on the islands of Taninthayi Region can collect the edible bird nests between the 2021-2022 financial year and 2023-2024FY. Bidding will commence soon. The islands to harvest the edible bird nests are located in Dawei, Myeik and Kawthoung districts. According to open tendering rules and regulations, an individual businessperson must handle the work. Edible-nest swiftlets dwell in the Southeast Asian coastal region and they can be found in Taninthayi Region.

The work permit is changed from a yearly basis to once every three years for the sustainable production of bird nests. The edible bird nests production businesses boomed in the COVID-19 pandemic. Last year, the market saw an exorbitant price of bird nests. Moreover, with the price of edible birds’ nests rising, the number of breeders of edible nest swiftlets has increased in Myeik Township. Edible nest swiftlets are induced into making nests using bird-noise techniques at houses along the Strand Road in Myeik. This breeding business has become popular in the region, and many breeders are thriving, said breeders. Two types of nests are sold at the market: those from islands and those collected from breeding houses. 

Source: The Global New Light of Myanmar

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Announcement on Extension of the Precautionary Restriction Measures Relating to Control of the COVID-19 Pandemic until 28 February 2022

  1. WITH a view to ensuring further strengthening of measures to contain the spread of the COVID-19 pandemic, the Ministry of Foreign Affairs of the Republic of the Union of Myanmar has issued the following announcements regarding temporary entry restrictions for visitors from all countries. All those restrictions were extended until 31 January 2022 by the Ministry’s announcement dated 1 January 2022.
    (a) Announcement dated 15 March 2020 regarding precautionary measures for all travellers visiting Myanmar;
    (b) Announcement dated 20 March 2020 regarding additional precautionary measures for travellers visiting Myanmar and temporary suspension of issuance of visa on arrival and e-visa;
    (c) Announcement dated 24 March 2020 regarding additional precautionary measures for travellers from all countries visiting Myanmar;
    (d) Announcement dated 28 March 2020 regarding temporary suspension of all types of visas (including social visit visas) and visa exemption services.
  2. In order to continue its effective response measures to protect the population of the country from the risks of importation and spread of the COVID-19, the Government of the Republic of the Union of Myanmar has decided to extend the afore-mentioned entry restriction measures until 28 February 2022.
  3. In case of urgent official missions or compelling reasons, foreign nationals, including diplomats and United Nations officials, who wish to travel to Myanmar by available relief or special flights, may contact the nearest Myanmar Mission for possible exception with regard to certain visa restrictions. However, all visitors must abide by existing directives issued by the Ministry of Health relating to the prevention and control of the COVID-19 pandemic.

Ministry of Foreign Affairs
Nay Pyi Taw
Dated. 31 January 2022

Source: The Global New Light of Myanmar