CBM sells $160 mln for fuel oil sector

The Central Bank of Myanmar (CBM) has sold US$165.62 million for the fuel oil sector, according to the Consumer Affairs Department. Between 15 September 2021 and 4 February 2022, $147.90 million were sold to the oil-importing companies at the CBM’s reference rate, while the Central Committee on Ensuring Smooth Flow of Trade and Goods directly sold $7.72 million for the oil industry and $10 million to Myanmar International Freight Forwarders Association. The CBM sold those foreign currencies multiple times at the exchange rates of K1,753 in minimum and K1,820 in maximum.

Additionally, the Ministry of Commerce in coordination with the Myanmar Petroleum Trade Association carried out a scheme to distribute fuel oil at a fairer rate through the government-sponsored petrol station chains starting from 22 September 2021. The total volume of fuel oil that are sold at very cheap rates is equivalent to the amount that the oil importers directly purchased the foreign currency from the CBM. The companies imported $147.90 million worth of 226 million litres of fuel oil.

Of them, over 224 million litres have been distributed so far and over a million litres are left for sales, said an official of the Consumer Affairs Department. Those oils have to be sold at the reference rate set by the Petroleum Products Regulatory Department. The consumers can complain about overcharging for fuel oil which is sold at the subsidized rate under the public distribution system, the Ministry of Commerce stated. If any overcharging is found, the consumers can complain about it through the Central Committee, Consumer Affairs Department and Myanmar Petroleum Trade Association.

Following the crude oil price rally in the global market and Kyat depreciation against US Dollar at over K2,000, the oil prices hit a peak of K1,830 per litre for diesel, K1,845 for premium diesel, K1,855 for Octane 92 Ron and K1,930 for Octane 95 Ron. 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, while the exchange rate stood at K1,330 then. Therefore, Myanmar Petroleum Trade Association is offering special prices for those fuel oil in the regions and states. The special price of fuel in Yangon on 16 March stood at K1,613 per litre for premium diesel and K1,549 per litre for diesel. Normally, Myanmar yearly imports 6 million tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

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MNA, Air India to repatriate Myanmar nationals in India by relief flights in April

Myanmar National Airlines (MNA) and Air India will fly relief flights in April to help Myanmar nationals who are having difficulties returning home for various reasons, according to the Myanmar Embassy in New Delhi, India. MNA has been operating monthly relief flights to repatriate Myanmar nationals who have been stranded in India for various reasons due to COVID-19 prevention and control measures.

For returnees, relief flights of MNA will fly on 5 and 26 April and Air India will fly on 6 and 20 April respectively to Myanmar. The embassy has announced that those who would like to fly with MNA can send an email to callcenter@flymna.com, contactus@flymna.com and reservations@flymna.com, as well as can make a call to + 951378603-04-06 and +951377840-41-42.

Passengers are required to have a negative RT PCR test result, and those whose visas are about to expire must extend their visas at the https//indianfrro.gov.in/frro/, the official website of the Foreigner Regional Registration Office of the Immigration Bureau of India. If the visa cannot be extended, exit permit applications must be made in advance, according to the statement of the Myanmar Embassy in New Delhi. Regarding Myanmar citizenship issues, +91 852788 3562 and +91 26578822 can be reached, the statement said.

Source: The Global New Light of Myanmar

CBM sells US$79 million for palm oil sector

The Central Bank of Myanmar sold US$79 million to the palm oil importers so that the palm oil can be
distributed at the fairer price, according to the Consumer Affairs Department under the Ministry of Commerce. Starting from 15 September 2021, the CBM has sold the foreign currencies multiple times to the palm oil importing companies at the minimum exchange rate of K1,753 and the maximum rate of K1,820 per dollar as of 4 February. Over 6,000 tonnes of palm oil which is equivalent to $79 million are being sold at the subsidized price. Of 6,000 tonnes, 195.41 tonnes of palm oil are left for sales, said an official of the Consumer Affairs Department.

Myanmar Edible Oil Dealers Association set the palm oil reference rate and the sales volume depending on the CBM’s exchange rate and the imported oil prices of the companies. Consequently, the relevant oil importing companies distribute the palm oil at the reference rate set by the association and have to submit a sales report to the steering committee on the importation and distribution of the edible oil, according to the Consumer Affairs Department. The consumers can complain about overcharging for edible oil which is sold at subsidized rate under the public distribution system, the Ministry of Commerce stated.

If any overcharging is found, the consumers can complain about it through the contact numbers (0943666668) of the Yangon Region Consumer Affairs Department and (09262079105 and 09965136377) of the Myanmar Edible Oil Dealers Association. Tracking the rise in imported oil prices, the retail price of palm oil is shooting up around K7,000 per viss (a viss equals 1.6 kilogrammes) at present. Meanwhile, the Myanmar Edible Oil Dealers Association is selling those palm oil with the mobile market trucks at the subsidized rate of K6,000 per viss. The domestic consumption of edible oil is estimated at one million tonnes a year. The local cooking oil production is just about 400,000 tonnes. To meet the self-sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported.

Source: The Global New Light of Myanmar

Thai company to take over Myanmar gas block after Total leaves

Following the departure of global energy giants Chevron and Total-Energies in January, Thailand’s PTTEP has said it will take over the Yadana gas field, which is key to Myanmar. The US and French companies have said they will withdraw from operating in Burma as international pressure to cut off financial ties with Burma’s Nasaka government after human rights groups seized control of the country last year.

The Yadana gas field in the Andaman Sea, which supplies electricity to Myanmar and Thailand, is one of Burma’s largest foreign-funded natural gas projects, earning more than $ 1 billion annually, according to Human Rights Watch (HRW). Following Total Energies’ decision to withdraw from the Yadana project, PTTEP has carefully considered taking the next step in ensuring uninterrupted supply of natural gas. PTT Exploration and Production Public Company (PTTEP) said in a statement issued on March 14.

PTTEP, a unit of Thai state-owned energy company PTT, will take over operations from July 20 to resume gas production and prevent power outages, he said. The block blocks about 50 percent of Myanmar’s natural gas needs. It blocks 11% of Thailand’s demand. In recent weeks, Burma has been hit by severe power outages and even queues for water in Rangoon, the economic capital, with the Nasaka government blaming rising fuel prices and terrorist attacks on infrastructure. Nasaka says it controls and benefits the country’s vast economy, including oil and gas. Other international companies, including British American Tobacco and French renewable energy company Voltalia, have left operations in Myanmar since February last year.

Source: Daily Eleven

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Over 400 trucks stuck in Kyinsankyawt-Muse road part permitted to enter China side

China-Myanmar cross-border Kyinsankyawt post, after a temporary closure following the detection of the coronavirus, resumed its trade from 12 March and over 400 trucks stuck in Kyinsankyawt and Muse 105th-mile are given the green light for exports to China as per the health guidelines for the coronavirus, said U Min Thein, vice-chair of the Muse Rice Wholesale Centre. Following the detection of the COVID-19 cases in recent days, the short-haul drivers were isolated for two days and the disinfecting activities were carried out.

The China-Myanmar cross-border Kyinsankyawt post was temporarily shut down between 2 and 12 March 2022. The closure of the post negatively affected the watermelon, muskmelon, pumpkin, chilli, onion, rice and broken rice, rubber and other commodity trucks. More than 400 trucks were stranded in that road part for about a dozen days. Consequently, we asked the traders in lower Myanmar to halt for a while. Some trucks are stopped at 16 miles on Mandalay highway, while some have stayed on Lashio’s outer ring road. China gave the go-ahead to over 400 trucks along with Muse and Kyinsankyawt road parts in the afternoon of 12 March.

They are delivered the goods in line with the COVID-19 protocol. Of 400 trucks, trucks loaded with those perishable goods are prioritized to pass the checkpoint. Additionally, the freight forwarders in lower Myanmar do not need to rush the transport and they have to carefully consider the supply and cross-border trade situation, said U Sai Khin Maung from the Khwanyo Fruit Trade Depot. China shut down all the checkpoints linking to the Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November on a trial run. Myanmar daily delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon, pumpkin and other food commodities to China through Kyinsankyawt and construction materials, electrical appliances, household goods and industrial raw materials are imported into the country. 

Source: The Global New Light of Myanmar

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2,900 companies struck off register due to the absence of AR as of 1 March: DICA

A total of 2,900 companies have been struck off the register as of 1 March 2022 since July 2021 as they fail to submit annual return (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). The DICA has notified any registered company which fails to submit its AR on MyCO are to be suspended, under Section 430 (F) of Myanmar Companies Law, according to the DICA’s notification. All registered companies need to file 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 the Section 97 of the law.

In accord with the 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, as per Section 53 (A-1) of the Myanmar Companies Law 2017. As per DICA’s report, more than 16,000 companies were suspended for failing to submit AR forms within the timeframe. 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, totaling K250,000. 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. The registration and re-registration of companies on the MyCO website was commenced on 1 August 2018, in keeping with the Myanmar Companies Law 2017. The number of companies registered on the online registry system, MyCO, totalled 2,100 in the past two months (Jan-Feb) 2022, the statistics released by the DICA. At present, 100 per cent of the applicants are using the online registration platform, according to the data provided by the DICA.

Source: The Global New Light of Myanmar

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Myanmar receives Thai-donated 500,000 AstraZeneca doses, 500,000 needles

The first batch of COVID-19 vaccines donated by the Thailand government arrived at the Yangon International Airport yesterday. Of one million doses of AstraZeneca, a total of 500,000 doses and 500,000 needles was included in the initial batch and the handover ceremony was organized at the airport.

The event was attended by Permanent Executive Committee member Dr Tin Nyunt of the Myanmar Red Cross Society, General Secretary Prof Dr Htin Zaw Soe, Yangon Region Public Health Department Director Dr Yan Naung Tun, Charge d’ affairs Mrs Kanokwan Pengsuwan of the Thai Embassy to Myanmar, Minister Counsellor Ms Chana Sindhvananda, First Secretary Ms Chalermkwan Worranit and other officials of the Ministry of Foreign Affairs.

The newly-arrived COVID-19 vaccines will be allocated to the regions with a low level of vaccine coverage in addition to the border areas. The Ministry of Health accelerate the momentum in the vaccination programme as per the target groups and 24.7 million of people across the nation received the vaccines up to 12 March, while 21.4 million people have been fully vaccinated and 3.3 million people receive their first dose of vaccine.

Therefore, a total of 47.01 million vaccines were delivered in the country until 12 March. If people have been fully vaccinated, the vaccines can help prevent serious illness and death. The Ministry of Health urged the people to receive the vaccines without fail and those who receive the first shots to get vaccinated for second doses on the due date or within the fixed period at the nearest vaccination sites and to participate in the processes actively. 

Source: The Global New Light of Myanmar

Three-month trial of direct baht / kyat payment from March 21 in Myawaddy and Tachileik on the Myanmar-Thailand border

In Myawaddy and Tachileik on the Myanmar-Thailand border, the baht / kyat direct payment will be tested for three months from March 21, according to the coordination meeting on the direct use of baht / kyat in the Thai-Myanmar border trade on March 10. Coordination between relevant departments for the successful implementation of the baht / kyat direct payment system in the border areas of Myawaddy and Tachileik; As for the Piolot Preiod, the three-month period from March 21 was discussed.

In addition, the formation of a support group to facilitate cooperation between departments on the ground; Guidling arrangements for clearing the way for direct use of baht / kyat in cross-border trade for traders are scheduled for the third week of March. To be able to use the baht / kyat market exchange rate and to facilitate the cash withdrawal by exchanging the baht from trade to the Myanmar kyat. Issues related to reporting trade information were discussed.

The Central Bank of Myanmar (CBM) announced on March 3 that it can now use the baht and kyat directly on the Thai-Myanmar border. To increase bilateral trade; To speed up the flow of goods; The statement said that the aim was to increase the domestic currency in line with the objectives of ASEAN Financial Integration, in addition to facilitating the two countries’ payment and settlement system. The statement said that the baht accounts of importers and exporters who will carry out cross-border trade will be allowed to open in Designated Banks, which allow them to use the baht and kyat directly.

Designated banks are required to adhere to guidelines on the use of baht and kyat in border trade between the two countries. Myanmar has a total annual trade volume of about $ 35 billion with foreign countries, accounting for about 30 percent of the total, according to figures released by the Ministry of Commerce. On Myanmar-Thailand border, Tachileik, Myawaddy, Kawthaung, Myeik, Htee-khee, Maw-taung doing the indirect trade while the Myawaddy border trade point is the largest source of trade. In the current five-month Ming Budget, Myanmar-Thailand border trade exceeds $ 2 billion, of which more than $ 1 billion (about 50 percent) is handled from the Myawaddy border trade post alone.

Source: Daily Eleven

Manufacturing sector attracts over $138 mln in October-February

The majority of foreign enterprises eye the manufacturing sector for investments, pumping the estimated capital of US$138.6 million into 25 projects in the past five months of the current mini-budget period (October 2021-March 2022), as per the statistics released by the Directorate of Investment and Company Administration (DICA). The manufacturing enterprises and businesses that need a large labour force are prioritized, according to the Myanmar Investment Commission.

At present, labour-intensive enterprises are facing financial hardships amid the COVID-19 negative impacts and political changes. Myanmar’s garment export drastically dropped on the back of a slump in demand by the European Union market in the previous months. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. Nonetheless, the industry is returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report.

Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. Myanmar has drawn foreign direct investment of more than $530.77 million from 34 enterprises during the October-February period. The investments are flowing agriculture, livestock and fisheries, manufacturing, power, construction, transport and communication, hotel and tourism and other services sectors, including expansion of capital by existing enterprises, the DICA’s statistics indicated.

Source: The Global New Light of Myanmar

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Corn commodity lines including corn mills, and cornstarch will be allowed to export only after applying for an export license starting from April 1

On March 9, 2022, the Department of Commerce announced that commodity lines containing corn mills, including cornstarch, would be allowed to export only after applying for export licenses from April 1, 2022. The Ministry of Commerce and Industry (MOEC) Department of Commerce Published by Import Newsletter (3/2022). Some of the exported goods are subject to national security and food security. In order to protect the environment, 778 lines of goods with HS Code 6 Digit or 1224 lines of goods with HS Code 10 Digit are designated as goods lines that need to apply for export license by Notification No. (51/2020).

According to the joint 2017 Customs Tariff of Myanmar, which includes corn mills, including cornstarch, 11 additional lines with HS Code 6 Digit or 12 lines with HS Code 10 Digit are required to apply for export licenses. Therefore, any of the goods lines required to apply for a license under paragraph 2 above may be imported from overseas. The Department of Commerce has announced that from April 1, 2022, exports will be allowed only after applying for export licenses in accordance with the regulations. From March 2, the Department of Commerce announced that 141 lines of goods containing wheat and plastic raw materials will be added to the list of goods that need to apply for import licenses. In the aftermath of the COVID-19 outbreak, businesses may need to be rehabilitated.  

In order to streamline imports and regulate the use of foreign currency for the import of goods, some imported goods will be subject to the import license system. Therefore, according to the Notification No. 68/2020 issued on October 22, 2020, there are 3931 product lines with HS Code 10 Digit which need to apply for import license. HS Code 10 Digit issued by Newsletter on Import and Export (18/2021) with 3070 product lines; The HS Code 10 Digit issued by the Newsletter (1/2022) states that the goods specified in the joint HS Code, including 826 product lines, including 826 product lines, are the goods lines that need to apply for import licenses. Importing from the air and border trade routes will be allowed from March 2, 2022 only after applying for an import license in accordance with the procedures.

Source: Daily Eleven