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Licensed overseas recruitment agencies allowed to send employees abroad

by SERVICES

The licenced overseas recruitment agencies are allowed to send employees abroad under the Overseas Employment Law (1999), according to the Ministry of Labour, Immigration and Population. Regarding granting licence to the overseas recruitment agencies, most employees choose to depart mainly to Thailand, Malaysia, Korea, Japan, Singapore, the United Arab Emirates, Qatar, Macao and Jordan. So far, Myanmar has sent 1,320,914 employees to foreign countries from 1990 to May 2021.

The Ministry of Labour, Immigration and Population has been increasing business licence deposit fees for the overseas employment agencies from K5 million to K25 million starting from 4 February 2020. It raised deposit fees to reduce the number of overseas employment agencies, make them interested in their businesses, and work effectively. It would also ensure more prominent agencies are more responsible and accountable. According to the Ministry, among the overseas recruitment agencies, there are 295 overseas employment agencies in Myanmar that pay increased deposit fees of K 25 million.

Those who wish to apply for the new overseas employment agency license need to come and apply for the permit at the department of labour relations (head office) in Nay Pyi Taw. The application must be signed in person by the managing director of the agency companies. The managing directors need to bring the necessary documents such as company profile, national ID, census and recommendation of the police station and ward. Those, who will apply for agency licences, must show proof of personal assets worth K100 million, an updated bank account with at least K100 million from the last six months and demand letters. 

Source: The Global New Light of Myanmar

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Hotels welcome back guests in Yangon

by HOTEL & TOURISM

Hotels in Yangon that were among the first to suspend operations due to the COVID-19 pandemic have welcomed travellers back. Many small hotels in the Yangon hotel zone have reopened since domestic tourism has been boosted.

Though there is not much profit from the hotel business at present, reopening at least will cover employees’ salaries and maintain the electricity and utility cost of the hotel. According to the Yangon Hotelier Association chairman, prolonged closure makes them difficult maintain in the long run.

Due to the suspension of international travellers to Myanmar, foreign-invested hotels have not yet reopened. Yangon, which has been hard-hit by the global pandemic, has 359 small hotels related to domestic tourism and about 20 foreign-direct-invested hotels that target international travellers.

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 30 June 2021

by COVID
  1. With a view to 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 May 2021 by the Ministry’s announcement dated 30 April 2021.
    (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 30 June 2021.
  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 and Sports relating to the prevention and control of the COVID-19 pandemic.
    Ministry of Foreign Affairs
    Nay Pyi Taw
    Dated. 31 May 2021

Source: The Global New Light of Myanmar

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Myanmar trade value tops $1,200 mln for October-March this FY

by TRADING

Myanmar average export value for March 2020-2021 financial year reached US$565.33 million, and border export value touched $637.84 million, with total export value coming at $1,203.17 million as a result. Meanwhile, the normal import value for the same period registered at $963.86 million, and border import is pegged at $159.10 million, reaching a total of $1,122.96 million.

As a result, Myanmar total trade value for March 2020-2021FY hit $2,326.13 million, creating a trade surplus of $80.21 million. From October to March of the current 2020-2021FY, Myanmar’s normal export value generated $3,995.57 million and border export reached $3,828.69 million, totalling $7,824.26 million.

The average import value for the same period reached $6,292.21 million, and border import registered at $1,492.93 million, bringing the total to $7,785.14 million. Consequently, Myanmar’s total trade value for the first and second quarter of the 2020-2021FY is pegged at $15,609.40 million, generating a trade surplus of $39.12 million, according to the monthly trade report of the Central Statistical Organization.

Source: The Global New Light of Myanmar

agriculture

Agro exports up 33 per cent this FY

by TRADING

The agricultural exports spike 33.36 per cent to a high of US$3.46 billion in the past seven and half months of the current financial year 2020-2021, despite the downward trend in other export groups amid the banking restriction and the tightened coronavirus containment measures in the border. The figures reflect a significant rise of $866.066 million this FY. According to the trade figures released by the Ministry of Commerce, agro exports topped $2.59 billion in the corresponding period of the 2019-2020FY.

The agricultural exports unexpectedly surge regardless of the impact of the coronavirus on foreign demand for other export groups such as fishery, livestock, mineral, forest products, finished industrial goods and other goods. In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports. The top export items in the agricultural industry are rice and broken rice, pulses and beans and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro products are also shipped to other countries.

Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. Sometimes, the export market remains uncertain due to unsteady global demand. The country requires specific export plans for each agro product. They are currently exported to external markets based on supply and demand. Contract farming systems, regional and state agriculture departments, exporters, traders, and some grower groups are required to meet production targets, said an official from the Agriculture Department. The Commerce Ministry works to help farmers deal with challenges — high input costs, procurement of pedigree seeds, high cultivation costs, and unpredictable weather conditions.

Source: The Global New Light of Myanmar

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Hteekhee border trade falls by $454.9 mln as of mid-May

by TRADING

Bilateral trade between Thailand and Myanmar through the Hteekhee border over the past seven and half months reflected a decrease of $454.9 million against a year-ago period. Between 1 October and 14 May in the current financial year 2020-2021, the figures sharply fell to US$911.4 million from $1.36 million registered in the previous financial year, according to data from the Commerce Ministry.

The surge in coronavirus cases in Myanmar led Thailand to limit truck drivers’ working hours at the border posts. Consequently, the trade via land border between Myanmar and Thailand sharply fell in the current FY. The Ministry of Commerce stated that natural gas exports from the Taninthayi Region have contributed to an enormous increase in trade through the Htikhee border during the previous years.

The border trade between Myanmar and Thailand through the border areas — Myeik, Kawthoung, Mawtaung, Hteekhee and Meisei posts declined as of 14 May. In contrast, trade via Tachilek and Myawady posts rose due to corn exports. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, corns and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics and food products from the neighbouring country. 

Source: The Global New Light of Myanmar

CBM sells US$24 mln in May at auction rate

by ECONOMY

The Central Bank of Myanmar (CBM) reportedly sold US$24 million at an auction rate in May, the CBM data showed.
The CBM’s move aims at governing the market volatility, the CBM stated. The CBM sold $6 million each on 12 and 13 May and $3 million each on 17, 18, 20 and 28 May, respectively. The bullish hard currency gained in the local forex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end. In a bid to control the sharp daily gains of the US dollar, the CBM reportedly sold about 6.8 million dollars on 3 February 2021, 6 million dollars each on 22 and 27 April and $24 million in May in the auction market.

Consequently, the exchange rate dipped to K1,580 in May-end. The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April.

In 2020, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar

Myanmar Banks Association announces bank loans should be repaid on time either in cash or in kind

by ECONOMY

The Myanmar Banks Association has announced that bank loans should be repaid on time and the payment can be made by cash or debit. The Myanmar Banks Association has launched banking services, including the ability to open an account with a minimum deposit of 10,000 kyats to 100,000 kyats in a new deposit account. The current account can be opened by depositing at least 10,000 kyats to 100,000 kyats in cash in the current account. Banks are not compatible with each other and interest rates may vary from bank to bank.

Payment can be made in cash. Withdrawals can be made using cashier’s check (Cash Transfer, CBM Net, Digital Payment, Any Channel). Call Deposit can be used to open an account with a minimum deposit of 10,000 kyats to 100,000 kyats in cash and interest rates may vary from bank to bank. Payment can be made in cash. Withdrawals can be made by check (cash transfer, CBM Net, Digital Payment, Any Channel).

In repaying the loan principal/interest, the loan principal/interest borrowed by the banks is paid in cash or in kind. It also encourages banks to repay their loans before maturity in order to facilitate the smooth repayment of deposits currently deposited with banks by changing the list or accounting method. In addition, a statement from Myanmar Banks Association also state about old deposit accounts, Sale of Payment Order (PO), issuance of Bank Grarantee (BG), Money transfer and TT/ LC services.

Source: Daily Eleven

According to the original estimate, the Union tax revenue in the 2020-2021 fiscal year is expected to reach over 8615.777 billion kyats

by ECONOMY

According to the original estimate, the Union tax collection in the 2020-2021 fiscal year is expected to reach over 8615.777 billion kyats. The revenue collection situation of the Union is 1691429.766 million kyats in the 2011-2012 financial year, 3373296.761 million kyats in the 2012-2013 financial year; 4458776.351 million in the 2013-2014 financial year, 6517979.368 million in the 2014-2015 financial year; 6314733.657 million in the 2015-2016 financial year, In the 2016-2017 financial year, 7122430.228 million; 7423724.984 million in the 2017-2018 financial year, In the six-month period from April to September 2018, 3424,206.832 million kyats; In the 2018-2019 financial year, it received 8360303.568 million kyats, in the fiscal year 2019-2020, it was 8475667.746 million kyats and the fiscal year 2020-2021, it is planned to receive 86157777.229 million kyats.

According to the Internal Revenue Department, the annual income tax revenue was over 3,379 billion kyats in the 2019-2020 fiscal year, which was 687 billion kyats more than the previous year published by Information Unit. According to the annual special excise tax revenue, 1266912.42 million kyats from October to September of the fiscal year 2019-2020,1429120.75 million kyats from October to September of 2018-2019 fiscal year, 604924.24 million from April to September 2018; In the fiscal year 2017-2018, from April to March, 1240214.11 million kyats. From April to March of the 2016-2017 fiscal year, it received 994235.73 million kyats. According to the annual commercial tax revenue, 1877851.77 million kyats from April to March of the 2016-2017 fiscal year. 

From April to March of the 2017-2018 fiscal year, 1976999.13 million kyats; from April to September 2018, 920618.14 million kyats; 2256770.20 million kyats from October to September of 2018-2019 fiscal year; From October to September of the 2019-2020 fiscal year, Ks 2,110,187.21 million was received, according to the Internal Revenue Department published by Information Unit. In the 2019-2020 fiscal year (October 2019 to September 2020), a total of 7969.397 billion kyats is expected to be collected from various taxes. 2227.964 billion kyats from commercial tax; 1348.541 billion kyats from special excise tax; 85.407 billion from office tax and stamp duty. It is expected to receive up to 165 billion kyats from the Aung Bar Lay Thein prize.

Myanmar’s annual tax revenue was Ks 1683 billion in the 2011-2012 fiscal year. 3373 billion kyats in the 2012-2013 financial year; 4459 billion in the 2013-2014 financial year; 6518 billion kyats in the 2014-2015 financial year; 6315 billion kyats in the 2015-2016 financial year; 7122 billion in the 2016-2017 financial year; 7423 billion kyats for the fiscal year 2017-2018; Between April and September 2018, Ks. 2792 billion; In the 2018-2019 financial year, 7791 billion kyats was collected. The ratio of tax revenue to GDP was 3.63% in the 2011-2012 fiscal year. 6.5% in the 2012-2013 financial year; 7.69% in the 2013-2014 financial year; 9.84% in the 2014-2015 financial year; 8.61% in the 2015-2016 financial year; 8.93% in the 2016-2017 financial year; In the 2017-2018 financial year, 8.21%; Between April and September 2018, 8.49 percent; 7.3% in 2018-2019 fiscal year and 6.61% in the 2019-2020 fiscal year.

Source: Daily Eleven

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Wave Money Conflict

by SERVICES

Beginning in mid-March, agents at Wave Money Transfer, Myanmar’s largest market share, began to struggle. Online money transfer services in Myanmar include OK Dollar, Wave Money is the most used by the basic people. After the political upheaval in Myanmar, remittances were not difficult in February, but they have been difficult since mid-March. This is because Wave Money no longer provides remittances to Wave money transfer operators. Wave Money employs a representative called a DDR in each township. From there, people take the agent license and work. If a sender is about to transfer money to someone in another township, the money is transferred through an agent. An agent in another township will reimburse the receiver according to the amount transferred. The transfer fee is only 1500 kyats per 100,000. To do so, agents have to withdraw the money from the relevant DDR. And DDR also has to withdraw from Wave Money. This is the operating level of Wave Money. This is a normal routine. The problem has been there since the money could not be withdrawn.

In mid-March, agents who have direct contact with customers arrange to make deposits and withdrawals between the customers, even they are not able to withdraw cash. But the crisis is not over. As time went on, the agent ran out of money. As a result, the money in the banks has to be withdrawn as a percentage. Percentage withdrawal is become popular in the remittance market. Wave Money company is connected with Yoma Bank. In the past, if Wave could not withdraw money, people could withdraw from the bank. Now it can no longer be withdrawn from the bank, so people have to withdraw a percentage of the money from the bank to run their business. That’s where the percentage market comes in. Percentage withdrawal varies from township to township. The minimum payment is 10% and currently it is up to 12%. Wave Money has announced that it will take action against agents who exchange percentages shortly after the market for percentages is introduced. Lack of normal banking services, unlimited mobile internet disconnection, limited internet services, Wave Money reports that internet instability and power outages have disrupted their operations and made it difficult for them to provide services to millions of customers.

It is learned that the big agents are facing various difficulties in providing Wave Money money transfer and withdrawal services. Most of them are facing shortage of banknotes and money transfer at Wave Money shops. Agents are facing an increase in the amount of cash withdrawal services. According to reports, some agents are charging higher fees, and Wave Money understands the difficulties faced by its agents in this situation, but they are not allowed to charge more than normal Wave Money service fees. Wave Money has announced that it will investigate cases of overpayment and will take appropriate action against customers in the event of such breaches or breaches of the code. Wave Money agents reacted to the announcement. They said that when a customer want to withdrawal money, they give the number which Wave Money has given to them. The main problem is the irresponsibility of Wave Money. There has also been criticism of Wave Money’s statement on social media. These things would not have happened if Wave had taken responsibility for the money in the account and exchanged it for cash. 

It is understandable that Wave cannot take responsibility for itself due to the current situation. But people also see that accountability of Wave Money is lacking since they were just saying without any actual actions. But there are some agents who offer cashless withdrawals to keep the customers out of trouble. After the political upheaval, it became difficult to withdraw money from banks, and most people relied on remittance services such as Wave Money for easy money transfer. However, Wave agents say they have not yet been able to transfer money properly and have not returned to their original state. A money changer from Wave Money said that it was difficult to solve the problem for the basic people because it was not easy to transfer money. It’s easy for everyone to use, as long as they show them the incoming message and simply generate a password. Now, even if customers will pay the percentage, they still need to find the an agent. And they have to pay it since they need to have cash. For some people, they can buy rice with that money if they do not need to pay a percentage. At present, some Wave agents charge a percentage of the money in the bank to get the money out of the bank and then withdraw the money from the cashier. No one can say when that will end.

Source: Daily Eleven