Pure gold price edges up to K2.68 mln per tical tracking increase in global gold price

The price of pure gold inched higher to K2,680,000 per tical (0.578 ounce, or 0.016 kilogramme) following the increase in global gold spot prices, according to the domestic markets. The reference price issued by the YGEA has also risen simultaneously. On 4 November, the YGEA’s price was K1,936,000 per tical when the global gold spot price was US$1,644 per ounce. On 5 November, the global gold price increased to $1,681 per ounce, the reference price by the YGEA also climbed up to K1,980,000 per tical.

There is a price gap of about K700,000 per tical between the price set by the YGEA and the market price. YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition. The dollar was exchanged at K3,000 in the black market. Therefore, there is a large gap between the YGEA’s price and the market price based on the black-market dollar rate.

Meanwhile, YGEA called for the gold shops in Yangon Region to sell the pure gold at K2,530,000 per tical, according to its notification released on 30 October 2022. The soaring dollar exchanging at over K4,500 pushed up pure gold price to a record-high of K3.7 million per tical in late August. In order for the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots in Yangon, Mandalay and Nay Pyi Taw under the auction system. With an aim at reducing gold price, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.

Source: The Global New Light of Myanmar

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4,100 companies fail to submit AR in past ten months: DICA

A total of 4,100 companies have been struck off the register in the past ten months as they fail to submit annual returns (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). This year, 400 companies each in January, February and March, 300 in April and 500 in May, 400 each in June and July, 55 in August and 400 each in September and October did not file annual returns on MyCO respectively, according to DICA. The DICA has notified any registered company which fails to file its AR on MyCO is to be suspended under 430 (F) of the Myanmar Companies Law, according to DICA’s notification.

The registration and re-registration of companies on the MyCO website commenced on 1 August 2018 under the Myanmar Companies Law 2017. 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 Section 97 of the law. According to 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, thousands of companies were suspended for failing to submit AR forms before 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 the AR fee, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents, totalling 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.

Source: The Global New Light of Myanmar

92 Octane price jumps by over K100 per litre within 2 days

The 92 Octane price jumped over K100 per litre within two days, according to the fuel market. On 3 November, the prices stood at K2,005 per litre for 92 Octane, K2,095 for 95 Octane, K2,560 for diesel and K2,635 for premium diesel in the Yangon market. On 5 November, it was K2,115 per litre of 92 Octane, K2,230 per litre of 95 Octane, K2,650 per litre of diesel and K2,720 per litre of premium diesel. Therefore, the increasing prices of fuels ranged from K85 to K135 within two days. By the end of August, the fuel prices reached their highest at K2,605 per litre for 92 Octane, K2,670 for 95 Octane, K3,245 for diesel and K3,330 for premium diesel.

The prices are on the rise again as the prices of Singapore-based Mean of Platts Singapore (MOPS) become higher, according to the Supervisory Committee on Import, Storage and Distribution of Fuel Oil. The committee takes measures to ensure avoiding fuel shortages and maintaining price stability. Moreover, the Petroleum Products Regulatory Department released the daily fuel reference prices under the guidance of the Supervisory Committee on Import, Storage and Distribution of Fuel Oil. The reference rate in Yangon Region is set on the MOPS’ price assessment, shipping cost, premium insurance, tax, other general cost and reasonable profit rate.

The rates for regions and states are evaluated after adding the transport costs and the retail reference rates daily cover on the state-run newspapers and are posted on the media and official website and Facebook page of the department daily starting from 4 May. Therefore, the fuel oil stations that sell oil at higher prices than the reference prices are scrutinized and taken action under Petroleum and Petroleum Products Law 2017. As 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally, the oil prices in the market are changing depending on the international market prices.

The government maintains the situation to be stable prices that benefit the oil importers, sellers and consumers and distributes at the firer prices compared to the prices of regional countries. Some countries levied higher tax rates and hiked oil prices than Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also poses only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. 

Source: The Global New Light of Myanmar

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MOC commences new import system on Myanmar-Thailand border

Starting from 1 November, imports are to be allowed based on the export earnings or flows of funds and the initial stage of this move will commence in Myanmar-Thailand border areas, according to 31 October 2022 of the Trade Department under the Ministry of Commerce. To improve Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) measures and follow the Action Plan of the Financial Action Task Force (FATF), banking will be utilized in settling border transactions.

Imports will be allowed only with the banking system. The importers are permitted to use export earnings and foreign salary remittances of Myanmar citizens and can make transactions at the relevant banks with those earnings and flows of funds. The initial stage of this move will commence in the Myanmar-Thailand border areas, as per the statement. The Trade Department will grant an import licence after screening export earnings and flows of funds and making sure the import value does not exceed the bank account balance.

The export earnings and the flows of funds deposited after 1 April 2022 will be accepted. Those importers who seek the permit as of 31 October 2022 are not entitled to this. Those importers who were granted import licences before 31 October 2022 must bring in the goods by 30 November 2022. If they fail to do so, they will get their licences revoked. In the cross-border trade between Myanmar and Thailand, the exporting companies can import with their export earnings or transfer the earnings to other companies for imports. Moreover, they can import with their export earnings at the other border posts as well. 

Source: The Global New Light of Myanmar

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Over 20,000 tonnes of rice shipped to Bangladesh until October

More than 20,000 tonnes of rice have been sent to Bangladesh by up to October 2022, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade in September this year. According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027.

Following the MoU, Bangladesh’s Directorate-General of Food and MRF signed a sales contract for 200,000 tonnes of Myanmar’s rice to be exported to Bangladesh. As per the sales contract, Myanmar has shipped over 20,000 tonnes of rice to Bangladesh up to 31 October 2022. Furthermore, over 15,000 tonnes of rice are being loaded onto the vessel for now. The remaining over 150,000 tonnes of rice will be exported during the set period.

Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar

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Myanmar imports pharmaceuticals worth over US$13 million in Oct 2nd week

A total of 1,480 tonnes of pharmaceuticals, with an estimated value of over US$13 million, were imported from foreign countries in the second week of October, according to the trad data released by the Ministry of Commerce. Myanmar brought in 980 tonnes of medicines worth $12.706 million by sea and 500 tonnes of medicine worth $1.003 via the border posts between 8 and 14 October. They are primarily imported from China and Thailand.

Myanmar imported medicines from China, India, Pakistan, Indonesia, the Republic of Korea, Bangladesh, Germany, Singapore, Slovakia and Spain through maritime trade. China is the main exporter of pharmaceuticals to myanmar with 900 tonnes, followed by India (250), Thailand (100), Pakistan and Indonesia (50 each), the ROK (30), Bangladesh (20), Germany (20), Singapore (20), Slovakia (20) and Spain (20).

Eighteen types of imported pharmaceuticals are granted for Customs tariff exemption, according to the notification (19/2022) of the Myanmar Automated Cargo Clearance System (MACCS) division under the Myanmar Customs Department, dated 19 October. They are Aspirin, Paracetamol, Chlorpheniramine maleate, Diazepam, Mebendazole, Gentamicin, Metronidazole, Propranolol, Oral Rehydration Salt, Chlorpromazine, Salbutamol, Intravenous Glucose, Rifampicin, Ethambutol, Isoniazid, Frusemide, Digoxin and Prednisolone.

Source: The Global New Light of Myanmar

China’s RCEP regional new waterway to run through Yangon Port

China has opened the Beibu Gulf Port-RCEP regional waterway which will make a brief stopover at the Yangon Port, and four cargo ships will run weekly, according to the announcement of the Chinese Embassy in Myanmar. It was mentioned in the announcement that the successful arrival of the “SITC Venus” cargo ship at the Qinzhou port zone in Beibu Gulf Port, Guangxi Province, on 28 October was the successful opening of the Beibu Gulf Port-Myanmar direct waterway.

Many reviews were released after the opening of the new waterway that another proper waterway was supposedly introduced between the Beibu Gulf Port and the RCEP region. The waterway will run with four cargo ships weekly. The ports of arrival are as follows: Qinzhou-Nansha-Shekou-Khlan-Yangon- Belawan-Khlan-Nansha-Shekou-Hai Phong-Qinzhou.

The disclosure of the new waterway will densify the international maritime network between Beibu Gulf Port and RCEP region, contribute to more convenient export-import channels for goods, and reduce a lot of logistic and storage costs of businesses. Export goods will reach Yangon, Myanmar, 12 days after the departure from the Qinzhou Port via the new waterway and the length of time the journey takes will be reduced by 40 per cent, according to the statement. 

Source: The Global New Light of Myanmar