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Companies registered on MyCO exceed 2,000 in four months: DICA

by SERVICES

The number of companies registered on the online registry system, MyCO, topped 2,000 in the first four months of this year, 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, in keeping with the Myanmar Companies Law 2017. During Q1 of 2021, the number of registered companies on MyCO was 1,373 in January, 188 in February, 163 in March and 254 in April, the DICA’s statistics showed. At present, 100 per cent of the applicants are using the online registration platform, the DICA stated.

Last year, the figures of registered companies stood at 1,415 in January, 1,298 in February and 1,015 in March, only 348 companies in April, 798 in May, 1,314 in June, 1,650 in July, 1,551 in August, 1,378 in September, 1,693 in October, 1,099 in November and 1,521 in December, as per statistics of the DICA. The figure stood at 1,733 in January 2019, 1,419 in February, 1,108 in March, and over 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August and 1,181 in September. The figures reached a fresh new peak of 2,059 in October 2019. Then, 1,615 new companies in November and 1,772 in December were recorded, data of the DICA showed. When the online registry was launched in August 2018, 1,816 new companies registered on MyCO.

The figure stood at 2,218 in September 2018, 1,671 in October, 1,431 in November and 1,364 in December 2018. 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), according to Section 97 of Myanmar Companies Law 2017. According to Section 266 (A) of the Myanmar Companies Law 2017, public companies shall simultaneously submit annual returns and financial statements (G-5). 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 as of September-end 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 that 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 to restore 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

The number of ships arriving at Yangon ports was low between February and March 2021, and a total of 24 container vessels are expected to be operated by particular shipping line in May

by LOGISTICS

The number of ships arriving at Yangon ports was low between February and March this year, and a total of 24 container vessels are scheduled to be launch by each shipping line in May. A total of 24 container vessels are scheduled to be shipped to Yangon port in May this year to ensure timely shipments, and special routes will be added to meet market demand, according to the Myanmar Port Authority. In order to facilitate international trade, import and the flow of goods,  a coordination meeting was held to increase the number of container vessels to meet the demand for containers for export.

At the meeting, the Chief Executive Officer, Myanmar Port Authority has reported a drop in container arrivals at Yangon Port since the COVID-19 incident, rising demand for export containers, and called on Myanmar to work together to increase the volume of shipping and reduce the need for container shipping in international trade. The general manager of he Myanmar Ports Authority (MTA) has assessed the current demand for containers in the global market, especially in Asia and Southeast Asia, as well as the current demand for containers and refrigerated containers in order to ensure timely exports to Myanmar, and the safe operation of ports. 

The shipping lines are also currently suspending / suspending some vessels. A total of 24 container vessels are scheduled to be launched by May this year. In the five months since the discovery of the new waterway on the Yangon River, 152 ships carrying more than 30,000 tonnes entered the Yangon Inland Port and Thilawa Port. In the early of 2020, only 200 meter in width, 20,000 tons, with a draft of 6 meter and 167 meters long ships were allowed enter/ exit to Yangon Port, Thilawa Port Area and only 167 meter in width, 15,000-tonne vessels with a draft of 9 meters were allowed to enter / exit to port bridges in Yangon. During that period with the increased allowance of draft, a total of nine vessels over 9 meters draft entered the port area between July and November 2020 and three vessels carrying 15,000 to 30,000 tons of Frost Tonnage arrived and unloaded their cargo.

Source: Daily Eleven

Solar system benefiting rural people residing in off-grid areas

by ENERGY

Myanmar emphasizes the improvement of the renewable energy sector by generating 60.3 per cent of electricity from hydropower, 35.6 per cent from natural gas and 4.1 per cent from solar, coal and diesel up to the end of 2020. According to the data, a target was set to increase 12 per cent electricity generation from renewable energy in 2025. In so doing, the Department of Rural Development under the Ministry of Agriculture, Livestock and Irrigation takes responsibilities for rural electrification in the villages, the off-grid areas.

Rural electrification has been implemented since the 2012-2013 financial year. Up to 2015-2016 financial year, a total of 4,807 villages could be electrified across the nation using renewable energy such as solar, small-scale hydropower and biomass with 30 megawatts of installed capacity. Setting an aim to electrify the whole country in 2030, a US$90 million loan was borrowed from the World Bank through the international development association-IDA loan for implementation of the NEP-national electrification plan (off-grid) in addition to the State budget and contributions of the people.

The small-scale power project based on less than 1-megawatt renewable energy was implemented in the 2016-2017 budget year. During the period from 2016-2017FY to 2019-2020FY, 414,461 households from 9,063 villages were electrified through the household solar system, 59,807 sets of the public solar system installed at the schools, dispensaries, religious schools and lamp-posts, solar, hydropower and paddy husk-fired power facilities at 99 project sites and some 30,085 households from 119 villages.

In the projects, the installed capacity of electrification reached 43.956 megawatts. The projects were implemented with the World Bank loan, the State budget, public contribution, the euro 30 million loan from Italy, euro 9 million assistance from KfW and euro 4.87 million for technical assistance from GIZ and the New Zealand government. Currently, the off-grid electrification project benefited some 2.22 million people. In 2020-2021FY, the household solar system will be implemented to benefit 48,974 houses from 757 villages, while 17 small-scale solar power projects will be undertaken with 4,704 sets of public solar systems.

Source: The Global New Light of Myanmar

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Lack of demand winds up Myanmar corn exports by sea

by TRADING

Myanmar’s corn exports by sea have come to an end due to the lack of demand, said Chair U Min Khaing of Myanmar Corn Industrial Association.
Myanmar has been delivering corns to the neighbouring countries Thailand and China via the land border. The shipment to Singapore, Malaysia and Viet Nam abruptly stopped owing to zero demand, he added. The lack of demand by sea is attributed to the political changes and disruption in the logistic sector. Myanmar is conveying corns to Thailand through the land border, with a tonne of maize fetching up about 8,000 baht.

Myanmar is allowed for corn export to Thailand’s Maesot between 1 February and 31 August with Form-D, under zero tariff. Myanmar corn exports were exempted from tax between February and August. Thailand imposed a maximum tax rate of 73 per cent on corn import to protect the rights of their growers if the corns are imported during the corn season of Thailand, in line with the notification of the World Trade Organization regarding corn import of Thailand, said a corn exporter.

With the local corn consumption growing, Myanmar’s corn export to foreign markets is expected to reach 1.6 million tonnes this year, the association stated. Myanmar exported 2.2 million tonnes of corns to the external market in the past Financial Year 2019-2020 ended 30 September, with an estimated value of $360 million, the Ministry of Commerce’s data showed. At present, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons- winter, summer and monsoon. The country yearly produces 2.5-3 million tonnes of corns.

Source: The Global New Light of Myanmar

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Due to the current situation, both manufacturing and new orders in Myanmar’s manufacturing sector fell fivefold in April, according to the PMI

by MANUFACTURING

Due to the current situation, both production and new orders in Myanmar’s manufacturing sector fell fivefold in April, according to the IHS Markit Myanmar Manufacturing PMI released on May 3 The April PMI data show that manufacturing conditions across Myanmar are declining sharply, with many businesses continuing to close due to the current situation.

Purchasing Manager’Index (PMI) New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. Of the five PMI segments in Myanmar (excluding supply delays), the other four fell, according to the survey. Both products and inventories fell by a record five times faster in survey history, while inventories and jobs fell three to four times faster, respectively. Key IHS Markit Myanmar Manufacturing PMI: The only integrated index that shows manufacturing productivity, rising from 27.5 in March last year to 33 in April, indicates an eight-month decline in operating conditions in Myanmar’s manufacturing sector.

Expectations for the next 12 months, meanwhile, fell further in April. Looking to the future, big companies generally expect product growth to increase in April 2022, but overall their expectations are the weakest in more than two years. In April, large companies’ production fell about 60 percent from March. Shortage of raw materials; The combination of poor exchange rates and rising transportation costs Imports have hit record highs since November. Sales prices rose modestly in April as weak demand made it difficult for large companies to pass on cost burdens. The survey is based on original data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

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Republic of the Union of Myanmar

by ECONOMY

State Administration Council

Order No 117/2021

7th Waning of Tagu 1383 ME

3 May 2021

Reformation of Union Ministry

The State Administration Council reformed the Ministry of Planning, Finance and Industry as the following ministries in accordance with Section 419 of the State Constitution of the Republic of the Union of Myanmar.
(1) Ministry of Planning and Finance
(2) Ministry of Industry


By order,
Aung Lin Dwe
Lieutenant-General
Secretary
State Administration Council

Source: The Global New Light of Myanmar

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Muse trade almost halts due to COVID-19 resurgence

by TRADING

The trade between Myanmar and China through Muse border ground to a halt as China tightened the border security and made policy changes in light of the COVID-19. China temporarily shut down Mang Wein and Chinshwehaw checkpoints in early April. Myanmar’s Muse border trade came to a standstill following the closure of the Mang Wein border checkpoint triggered by the detection of the coronavirus cases in the border area, according to the Muse Rice Wholesale Centre. On 29 March, one Myanmar citizen who tested positive for COVID-19 was found in Kyalgaung gems stone market.

It prompted China to restrict border access at the Mang Wein checkpoint, a major border crossing between Muse and Kyalgaung areas. Consequently, there is no trade flowing in and out of the country via the Muse-Mang Wein border. Furthermore, trade through the Kyinsankyawt border, a major checkpoint for fruit exports, is down by 80 per cent, said the traders. The closure of the Mang Wein checkpoint wreaked havoc on the Muse trade. The trade value through Muse land border plummeted to US$2.529 billion between 1 October and 16 April in the current financial year 2020-2021 from $2.738 billion recorded in the corresponding period of last FY, the Ministry of Commerce’s data showed. Suspension in border trade caused a negative impact on perishable fruits.

The policy changes in China’s border exacerbated Myanmar’s exports amid the COVID-19 resurgences, said a Muse trader. Prior to the Mang Wein checkpoint closure, Myanmar daily sent about 2,000 tonnes of rice and 40,000 tonnes of broken rice bags to China. At present, Myanmar’s rice export to China through the Muse land border has stalled amidst the coronavirus concerns. This Mang Wein post plays a pivotal role in trading between Myanmar and China. Myanmar exports rice, broken rice, onion, chilli pepper, pulses and beans, food commodities and fishery products to China. In contrast, electrical appliance, equipment, medical device, household goods, construction materials and food products are imported in the country via Mang Wein. Prior to the COVID-19 pandemic, about 500 trucks were daily flowing in and out of the Myanmar-China border Mang Wein.

Source: The Global New Light of Myanmar

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Myanmar-India border trade up by $84 mln this FY

by TRADING

Border trade between Myanmar and India hit US$160 million as of 16 April in the current financial year 2020-2021 ending September, said a statistical report of the Ministry of Commerce. The figures reflected an increase of $84.62 million as against a year-ago period.

The Myanmar-India total border trade during the period was shared by Myanmar’s export of $160.086 million and its import of $0.811 million. Myanmar conducts border trade with neighbouring India through Tamu, Reed, and Thantlang border posts. Between 1 October and 16 April in the current budget year, trade values have registered at over $31.46 million at Tamu and $129.44 million at Reed.

There was no trade recorded at the Thantlang post. Myanmar exports mung beans, pigeon peas, green grams, areca nuts, ginger, saffron, turmeric, bay leaves, fishery products, fruits, and vegetables to India. At the same time, it imports pharmaceuticals, oil cakes, electronic appliances, motorbikes, steel and other construction machines and building materials from the neighbouring country.

Source: The Global New Light of Myanmar

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Kyaukpyu soft-shell crab penetrating foreign market

by TRADING

The soft-shell crab cultivation business in the farms of No. 468 block in Kyaukpyu Township, Rakhine State is thriving and those crabs are started to distribute in the external market, said a breeder. They started this commercial farming in March 2019, with 250,000 crabs. They buy the young crabs from the wild, select the live crab and separate them in the crab farming boxes.

The crabs are fed fish, caught by the inshore and offshore fishing vessels, every six hours with the use of bamboo rafts. The soft-shell crabs of marketable size are sent to the cold storage for processing and they are, again, delivered to Yangon. Then, they are shipped to Asian countries with a container. The current difficulties in crab farming is a financial constraint amidst the COVID-19 impacts. Another problem is a limit in cash withdrawal at the bank and we are in debt to secure the raw material supply.

Kyaukpyu district head of the Fisheries Department U Kyaw Sint stated that the business employs about 110 local people, with a maximum monthly payment of K500,000. To maintain the soft-shell crab resources in a long term, we will direct the businesspersons to set some of the crabs free into the sea in a certain season. The soft-shell crabs from Kyaukpyu Township are being shipped to Asian countries such as Japan, the Republic of Korea, China Taipei (Taiwan) and Hong Kong SAR, Southeast Asian countries like Viet Nam and some European countries.

Source: The Global New Light of Myanmar

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Sesame market shows downticks on low foreign demand

by TRADING

THE sesame market is sluggish, and the price remains bearish in April-end, traders from the Mandalay market said. The market of edible oil crop has been slow-moving prior to the Chinese New Year festival. The market continues facing slow-down owing to heightened border security amid the COVID-19 resurgences, a trader said. The prices of white and brown sesame varieties have remained stable on the back of domestic demand. At the same time, there is low demand by foreign market. However, the price of black sesame seeds (Samone variety), which is primarily shipped to external markets, slightly declines.

On 4 February, the FOB prices of sesame stood at US$2,000-2,100 per metric tonne of Black sesame (Samone variety), $1,250-1,300 per metric tonne of white sesame and $1,150-1,200 per metric tonne of brown sesame. On 29 April, the black sesame price dipped to $1,900-2,000 per metric tonne. The white sesame is pegged at $1,200-1,300, and brown sesame fetches $1,100-$1,200, Bayintnaung wholesale market stated. Last year, the sesame prices dropped by over 20 per cent compared with the prices in the previous years due to the COVID-19 negative impacts. Consequently, the growers do not make a significant profit this year, a trader from the Mandalay market stressed.

Typically, Myanmar exports about 80 per cent of sesame production to foreign markets. China is the primary buyer of Myanmar sesame, which is also shipped to markets in Japan, the Republic of Korea, China (Taipei), the UK, Germany, the Netherlands, Greece, and Poland among the EU countries. The EU markets prefer organic- farming sesame seeds from Myanmar, said an official from the Trade Promotion Department. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China buys various coloured sesame seeds from the country.

This year, Japan has not purchased Myanmar’s sesame yet. Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the leading producer of sesame seeds. The seeds are also grown in Mandalay and Sagaing regions. Of the cooking oil crops grown in Myanmar, the acreage under sesame is the highest, accounting for 51.3 per cent of the overall oil crop plantation. The volume of sesame exports was registered at over 96,000 tonnes, worth $130 million, in the financial year 2015- 2016; 100,000 tonnes, worth $145 million, in the FY2016-2017FY; 120,000 tonnes, worth $147 million, in the FY2017-2018; 33,900 tonnes valued at $43.8 million in the 2018 mini-budget period, 125,800 tonnes, worth $212.5 million in the FY2018-2019 and over 150,000 tonnes of sesame, worth $240 million in the previous FY2019-2020, the trade data of Central Statistical Organization indicated.

Source: The Global New Light of Myanmar