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MADB to disburse K5 bln monsoon crop loans for over 6,000 farmers in Myeik District

by ECONOMY

The Myanma Agricultural Development Bank (MADB) (Myeik branch) of the Ministry of Planning, Finance and Industry is implementing to provide K5 billion worth of agricultural loans for the monsoon rice crop season in order to cover 6,122 farmers in five townships in Myeik District. The MADB Myeik branch will disburse a total of 6,122 farmers (36,671 acres) monsoon crop loans, paying out K150,000 per acre.

The growers can take out loans for a maximum of ten acres. The interest is set at 5 per cent like the rate of the previous years. The respective township branch will pay out the loan. The loans will cover 3,141 farmers in Myeik Township, 1,194 in Kyunsu Township, 1,651 in Taninthayi Township, 42 in Bokpyin Township, and 94 in Kawthoung Township.

Those farmers who have already paid off the previous loan will be prioritized in the loan application process. The MADB Myeik branch has provided K34.2 million worth of loans to the farmers with 228 acres so far. MADB provides annual agricultural loans to small-scale farmers, intending to have food self-sufficiency and export competitiveness for Myanmar’s agricultural products in order to boost exports, promote the interests of the farmers and enhance their socio-economy. 

Source: The Global New Light of Myanmar

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Domestic black bean price jumps to over K1.08 mln per tonne

by TRADING

According to the Yangon Region Chambers of Commerce and Industry, the domestic black bean price has jumped to over K1.08 million per tonne (Bayintnaung Commodity Depot). Although the black bean price on 1 May was K888,500 per tonne, the price jumped to about K1,085,000 per tonne on 4 June, increasing around K200,000 per tonne in only over one month, according to the bean market data.

Black bean price has increased when India, the primary buyer of Myanmar pluses, has redefined black bean, green gram and pigeon pea bean from a restricted commodity to a free import commodity. However, the price has not reached the price that hit K1.3 million per tonne at the end of 2019. Since 2017, India has been setting import quota on beans, including black beans and pigeon peas, under the Indian government plus foreign trade policy for 2015-2020.

At present, the Ministry of Commerce and Industry of India has issued proclamation No. S.O.1858 (E) on 15 May 2021 that the three pluses have been changed from a restricted commodity to a fee import commodity as of 31 October 2021. The black bean plantations yielded around 400,000 tonnes annually in Myanmar, and the bean is mainly exported to India. Similarly, Myanmar has also produced about 50,000 tonnes of pigeon peas yearly and exported them chiefly to India. The black bean, which is mainly bought from India, is grown primarily in Myanmar. Other pluses, including green gram and pigeon pea, are produced in Africa and Australia in addition to Myanmar, according to Myanmar Pulses, Beans and Sesame Seeds Merchants Association.

Source: The Global New Light of Myanmar

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Over 2,600 companies register via MyCO system in five months

by SERVICES

According to the statistics released by the Directorate of Investment and Company Administration (DICA), the number of companies registered on the online registry system MyCO reached over 2,600 in the first five months of this year.
According to the Myanmar Companies Law 2017, registration must be done using the electronic registration system (MyCO), which was introduced on 1 August 2018. This year, the number of registered companies on MyCO was 1,373 in January, 188 in February, 163 in March, 254 in April and 686 in May, the DICA’s statistics showed. According to DICA, 100 per cent of MyCO system users are practising online application instead of manual filings. In 2020, the figures stood at 1,415 in January, 1,298 in February, 1,015 in March, 348 in April, 798 in May, 1,314 in June, 1,650 in July, 1,551 in August and 1,378 in September, 1,693 in October, 1,099 in November and 1,521 in December, the data of  DICA showed. In 2019, the number of registered companies mounted to 1,733 in January, 1,419 in February and 1,108 in March, 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August, 1,181 in September, 2,059 in October, 1,615 in November and 1,772 in December as per statistics of the DICA.

When the online registry was launched in August 2018, 1,816 new companies got registered via MyCO. The figures stood at 2,218 in September 2018, 1,671 in October, 1,431 in November and 1,364 in December 2018. Further, all registered companies (old and new) need to submit annual returns (AR) on MyCo system within two months of incorporation and at least once a year (not later than one month after the anniversary of incorporation), according to Section 97 of Myanmar Companies Law 2017. According to Section 266 (A) of the Myanmar Companies Law 2017, public companies must submit the annual returns and the financial statements (G-5) at the same time. And, all overseas corporations must submit annual reports in the prescribed format on MyCo in 28 days after the end of the financial year under Section 53 (A-1) of the Myanmar Companies Law 2017.

The companies have to submit AR within AR due date. However, more than 16,000 companies were suspended as of September 2020 because they have filed to submit AR. Therefore, the newly established companies are requested to submit AR within two months of incorporation. If they fail to do so, they may face a fine of K 100,000. If the AR form is filed to submit within 13 months, the system will send a suspension (I-9A) notification letter in company status. Besides, if the AR form is also filed to submit after receiving (I-9A) within 28 days’ notice, the system will show suspended in company status. Under this situation, the companies can restore their status by paying AR and late fees. Then, the companies need to submit the I-9D form. The suspended companies will have to pay a fine of K50,000 for the AR fees, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents. If AR forms are filed to submit again within six months of suspension, the system will show struck off in company status.

Source: The Global New Light of Myanmar

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Myanmar foreign trade tops $2.176 bln as of 21 May

by TRADING

Myanmar’s external trade between 1 October and 21 May in the current financial year 2020-2021 plummeted to US$2.1 billion, a sharp drop of over $1 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. During the same period in the previous FY, the trade stood at $3.2 billion, according to data released by the ministry. Over the past seven months, Myanmar’s export was worth over $9.475 billion, which plunged from $9.8 billion registered a year-ago period.

Meanwhile, the country’s import was valued $11.65 billion, showing a significant decrease of $1.358 billion compared with the last FY. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened the border security and limited the trading time to contain the spread of the virus. At present, the traders have transaction problem triggered by the restriction of the private banks, a market observer shared his opinion. 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 government is trying to reduce the trade deficit by screening luxury import items and boosting exports. Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach an export target of US$16 billion and import at $18 billion. The external trade stood at $36.73 billion in the 2019-2020FY, $35.147 billion in the 2018-2019FY, $18.728 billion in the 2018 six-month interim period, $33.578 billion in the 2017-2018FY and $29.209 billion in the 2016-2017FY, respectively, as per the Commerce Ministry’s statistics. 

Source: The Global New Light of Myanmar

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Stocks on YSX inch up in May

by ECONOMY

The number of shares traded on the Yangon Stock Exchange (YSX) climbed to 78,642 shares in May 2021, generating the trading value of K432.448 million, 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 rose in April with K280 million worth of 42,964 shares. The stocks maintained in the bull market in May as well. The stock markets worldwide have reported their largest declines since the 2008 financial crisis. Similarly, the local equities market is also scared by the COVID-19 crash, a market observer points out.

At present, people are keeping emergency savings rather than investing in the COVID-19 crisis and current political conditions, he added. In May, 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) and the Ever Flow River Group Public Co., Ltd (EFR) were traded in the equity market. The share prices per unit were closed at K9,100 for FMI, K3,500 for MTSH, K7,800 for MCB, K19,500 for FPB, K2,750 for TMH and K3,100 for EFR, respectively. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has continued operating without stopping trading.

In 2020, the value of stocks traded on the exchange peaked at K1.48 billion in February. In contrast, 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 at K13.39 billion, were traded on the exchange in 2019, according to the annual report released by the exchange. Additionally, Amata Holding Public Co., Ltd. (AMATA) was listed on the exchange on 3 June, with an introductory price of K4,500.

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 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 YSX, 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 emerge.

Source: The Global New Light of Myanmar

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Announcement on applying electronic payment systems instead of cash/cheque for tax payment of taxpayer companies to the State

by SERVICES
  1. Under the Ministry of Planning and Finance, the Internal Revenue Department arranges easy and rapid tax payment ways for taxpayer people through electronic payment, mobile banking, mobile payment, MPU Debit Card online, and links with relevant banks.
  2. The taxpayer, who has received taxpayer identification number-TIN, can pay income tax, commercial tax, special commodity tax, and gem tax to the banking accounts of relevant tax office at the branches of Myanmar Economic Bank from their bank A/C opened at private banks including foreign bank branches in Myanmar with the use of CBM-NET of the Central Bank of Myanmar or https://onlinepayment.ird.gov.mm/etax which is the online tax payment system of using MPU Debit Card.
  3. Income tax payment of staff from the companies paying tax at the Large Taxpayer Office or Medium Taxpayer Office can be paid to the banking accounts of the respective tax offices through electronic payments, mobile banking and mobile payments or MPU Debit Cards.
  4. Relevant private banks will issue the initial documents for payment as evidence of paying tax from the banking accounts of companies through electronic payment methods, mobile banking and mobile payment or payment from MPU Debit Card. After receiving the tax payment in the accounts, the Internal Revenue Department will send the e-payment to the taxpayers on completion of paying the tax.
  5. The taxpayers who have opened the banking accounts at the State-owned banks can pay tax through cash/cheque and account transfer.
  6. Hence, Income tax payment for staff of the taxpayers and the companies which pay tax at the Large Taxpayer Office and the medium taxpayer offices in Yangon, except for the taxpayers who opened bank accounts at the State-owned banks, will apply easier and smoother electronic payment systems instead of cash/cheque payment system as of 1 July in 2020-21 financial year. So, the department requested the taxpayers to cooperate in the process.
  7. For further information, taxpayers may contact-
    (a) Tax service office (Nay Pyi Taw)
    Office No. 46, Internal Revenue Department, Nay Pyi Taw
    Tel: 067-3430533 and 067-3430522
    (b) Tax service office (Yangon)
    No 59/61 (first floor), Pansodan Road, Kyauktada Township, Yangon
    Tel: 01-378370 and 01-378372
    (c) Information and Technology Branch (e-payment section)
    No 569/577, corner of Merchant Street and Baha Bandoola Park Street
    Kyauktada Township, Yangon, Tel: 01-8379021.
    Internal Revenue Department

Source: The Global New Light of Myanmar

YGEA strives for gold market stability

by ECONOMY

Myanmar gold market has risen along with the dollar gain in the local forex market. Yangon Region Gold Entrepreneurs Association (YGEA) reportedly decided not to sell the gold to those who influence and manipulate the gold market. The decision was made at the monthly meeting of the YGEA held May-end. The main point is not to sell those traders who practise market manipulation. Only gold retailers and gold shops from regions and states are available to buy the gold.

It’s an attempt to control the price as well, U Win Myint, general secretary of YGEA, pointed out. The precious yellow metal fetched K1,568,000 per tical (0.578 ounces or 0.016 kilograms) in May-end. The price of pure gold slightly increased to K1,573,000 per tical on 1 June. The price will not fluctuate widely on account of the concerted efforts. The domestic gold market was bullish, tracking the dollar gains in the local forex market.

The price reached an all-time high of K1,706,000 per tical on 12 May, while the dollar exchange rate against Kyat strengthened up to K1,760. The rate is recorded as the highest in history. At the monthly meeting, U Myo Myint, chair of YGEA, delivered an opening remark, and the patron U San Lwin also remarked. Secretary U Win Myint discussed ways to stabilize the gold price with the members of the YGEA. The association concluded to avoid bulk sale with gold shops and stop selling them to those traders who purposely manipulate the market.

Source: The Global New Light of Myanmar

Amata Holding Public Company debuts on YSX today (3 June)

by ECONOMY

The Amata Holding Public Co., Ltd (AMATA) is listed on the Yangon Stock Exchange (YSX) on 3 June 2021 at the base price of K4,500 per unit. Its share trading is made on the same day, according to the recent notice released by YSX. The upper limit price is set at K5,500, while the lower is at K3,500. If investors place a market order, it can be matched between the upper and lower limit price based on the balance of supply and demand. After scrutinizing submitted application documents and a deliberate listing examination, YSX approved the Amata Holding Public Co., Ltd. (AMATA) to be listed on YSX under Section 41 (c) of the Securities Exchange Law and Section 7 and 8 of the Securities Listing Business Regulations, on 28 December 2020. Earlier, it was earlier scheduled to debut on the exchange on 12 March.

YSX has postponed the scheduled date of listing of the Amata Holding Public Co., Ltd. (AMATA for a certain period, according to the YSX notification dated 26 February 2021. AMATA is the very first hotel and tourism business to be listed in the equity market. The base price of AMATA will be announced on the YSX website one working day prior to the listing date. On 18 July 2018, the company issued a prospectus in which 596 investors held 497,598 shares at an offering price of K5,000 per unit. AMATA would be the seventh public company to list on the exchange. AMATA is a public holding company as per the company’s profile. It operates resorts in Ngapali Beach, Inlay Lake and Bagan, and a hot air ballooning business with 15 balloons in six cities.

AMATA owns 99.99% share from United International Group Co., Ltd and 51% shares from Myanmar Ballooning Co., Ltd. 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 (TMH) and the Ever Flow River Group Public Co. Ltd (EFR) are traded on the exchange. On 2 June 2021, the share prices of FMI were closed at K9,000 per unit, MTSH at K3,500, MCB at K7,800, FPB at K19,000, TMH at K2,750 and EFR at K2,950, respectively. Usually, over K60 million worth of shares were traded on the exchange every day. The COVID-19 impacts cooled down the market.

Source: The Global New Light of Myanmar

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Yangon property booms but rental market plunges

by ECONOMY

After Yangon’s housing market crashed due to COVID-19 impacts, it raised its head again this year as Myanmar keeps the pandemic under control. The real estate rental market is, however, falling, the experienced realtors said. The real estate sales go up a bit at present. Housing price does not appreciate as expected. The property is sold at a low price. The rental market crashes as the businesses still cannot resume for now, said U Maung Maung, a realtor.

Despite the COVID-19 containment measures under control, the real estate rental market is dropping. The rent plunges, and house owners let the tenants stay more months.To remedy the economic fallouts, some generous property owners pay back half of the rent for long-term tenants. That is a kind of mutual trust between owners and tenants, and humanitarian action in difficult times. Although the real estate market in Yangon has recovered, we still cannot set which particular township has good real estate sales. At present, it depends on the demand of the buyers.

Some buyers prefer rural sites, and some buy large farmland acres and roadside property. The real estate in Yangon downtown (six townships) slightly drops. The real estate market is not set like dollar and oil prices. We cannot confirm the market price of the properties in 45 townships of the Yangon Region. The reason why the real estate market booms again is that people like to invest in property rather than banking. The real estate market crashed in 2020, and it recovers this year. Nevertheless, the pricing is not that high amid the economic collapse triggered by the COVID-19.

Source: The Global New Light of Myanmar

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National Payment System Governing Committee discusses to practice digital payment system

by SERVICES

National Payment System Governing Committee held its first coordination meeting in Nay Pyi Taw yesterday. During the meeting, Committee Chairman and CBM governor U Than Nyein said that it should implement the visions and missions of the National Payment System Strategy (2020-2025). It also needs to establish a secure national payment system that can effectively contribute to its financial stability and economic growth.

He also discussed matters pertaining to the use of electronic payment system for national payment, duties of government to supervise in implementing a digital payment system to reduce cash usage, modern payment and electronic payment systems, enactment of the law to protect service providers and customers, and plans to draft a law supervisory framework meeting the international criteria.

Then, Daw Than Than Swe, Deputy-Governor of CBM, presented CBM-Net System, tax payment on CBM-Net System, other tax payments via Digital payment platform of Mobile Financial Service Providers like Wave Money, OK Dollar, MPT, Ooredoo and MyTel and MMQR system. The attendees to the meeting also discussed the mobile payment systems of local banks, criteria and procedures for payments, digital payment system, cooperation works between government and private sectors for tax relief, digital sales for retail and wholesale, Cheque Truncation System, safe and secure payments and illegal payment system to be added in the payment system of the country. 

Source: The Global New Light of Myanmar