Container ship sailing with sun in background

MoC extends import permit on reconditioned machine for SMEs

by TRADING

THE Ministry of Commerce has extended import permits on the reconditioned machine for the small and medium- sized enterprises, support the establishment of the manufacturing process and reduce the capital expenditure, according to the notification released in the third week of January 2021. The Ministry of Commerce has allowed the import of used machines which are useable since 2015, according to section 13, subsection (b) of the Export and Import Law of the ministry.

The ministry issues the notification every year as per its policy, intending to avoid unnecessary goods piled up and environmental damage, and improving the entrepreneurs’ production capacity. Those reconditioned machines are to be remained usable up to 10 years starting from the import date. The machines shall be repaired to have the usable condition. The import requires a 10-year warranty by foreign sellers. Moreover, the machine parts and accessories of those imported machines shall be easily purchased in the domestic market.

The reshipment inspection certificate with six-month validity is also required to ensure the running condition of those machines, as per the notification. Nevertheless, the permit does not cover home appliances such as refrigerator, air-conditioner, washing machines, copier, printers, televisions, computers and office machines. Those machines which are designated for commercial sales are also not included. The notification comes into effect within 60 days of the issue date (20 January 2021). Those reconditioned machines can be imported only via maritime trade.

Source: The Global New Light of Myanmar

Domestic gold price jumps to K1,341,000 per tical

by ECONOMY

THE domestic gold price soared to K1,341,000 per tical (0.578 ounces, or 0.016 kilogrammes) on 2 February, the gold traders said. The international gold price was pegged at around US$1,855 per ounce on 2 February 2021, while a US dollar exchange rate was worth K1,335. Last 6 January 2021, the precious pure gold metal price rose to K1,336,000 per tical in the domestic market, and now, it peaked within one month. However, the local market sees more sellers outnumbering the buyers.

Earlier, the daily transaction of 50 visses (a viss equals 1.6 kg) of gold were seen in the market. Now, about five vises are traded per day, according tothe Yangon Region Gold Entrepreneurs Association. In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October).

The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal price moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs last year, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching an alltime record high of K1,300,000 on 5 September 2019.

Source: The Global New Light of Myanmar

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500 watermelon trucks stuck in border amid trade suspension

by TRADING

The flow of goods came to a halt in the Muse 105th zone on the morning of 1 February 2021. About 500 trucks of watermelons are stuck in border areas amidst trade suspension. The exporters expect the regular trade at the soonest, especially during high demand season by China, traders from Muse stressed.  According to Muse Fruit Wholesale Centre, as Chinese New Year is approaching, watermelons and muskmelons demand rising in recent days. In January-end, a watermelon fetched up to 7,000 Yuan per tonne, and the growers received a handsome profit.

The melon price hit a seven-year record high. Nevertheless, the price is fluctuating depending on the political climate and market demand at present. About 300 trucks of watermelon and muskmelons were earlier traded a day. This year, the growers raised the concerns over the melon market amid the COVID-19 crisis. Consequently, the number of melon growers sharply fell, and so, the acreage did. Only 50-60 trucks enter the Muse market every day during the pandemic. The market is expected to remain more robust as the demand exceeds the supply, Myanmar Watermelon and Muskmelon Producers and Exporters Association stated.

During the previous financial year, the growers and the traders suffered the loss due to the price instability and transportation difficulties triggered by the COVID-19. Myanmar’s watermelon market earlier relied only on China. Myanmar shipped 45 tonnes of seedless watermelon to Dubai market in the past two months, the association stated. After the country achieves success on the Dubai market, Myanmar plans to expand its market to Hong Kong SAR, the UAE and Qatar, the association stated. Myanmar yearly exports over 800,000 tonnes of watermelon and about 150,000 tonnes of muskmelons to China, the association stated.

Source: The Global New Light of Myanmar

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Trade deficit shrinks to $237 mln as of 22 January

by TRADING

Myanmar’s trade gap has significantly narrowed to US$237.385 million in the financial year 2020-2021 from just $698.157 million registered in the corresponding period of the 2019-2020FY, according to the commerce data.
Between 1 October and 22 January in the current FY, Myanmar’s external trade drastically plunged to $9.7 billion from $12 billion recorded in the year-ago period. While exports were estimated at $4.7 billion, imports were valued at $4.768 billion this FY. Compared to the FY2019-2020, exports showed a drop of over $1 billion, while imports fell by $1.47 billion. Myanmar witnessed a slump in exports triggered by the coronavirus pandemic. Moreover, the country cannot hold jade emporiums.

As a result of this, export income plummeted, according to Myanmar Trade Promotion Organization. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limited trading time to contain the virus’s spread. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders. 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 country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020FY, $1.14 billion in the 2018-2019FY, $1.3 billion in the previous mini-budget period (April-September, 2018), $3.9 billion in the 2017-2018FY, $5.3 billion in the 2016-2017FY, and $5.4 billion in the 2015-2016FY, according to statistics released by the Central Statistical Organization. Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. Moreover, a series of trade liberalization and openness for policy development have been introduced for enhancing a more viable trade environment. The private sector plays a prominent role in Myanmar’s market-oriented economic system. The ministry is highlighting free and fair trade, ensuring product safety and quality goods and services.

Source: The Global New Light of Myanmar

Republic of the Union of Myanmar Office of the President Order Number (1/2021)

by ECONOMY

Republic of the Union of Myanmar
Office of the President
Order Number (1/2021)
1 February 2021

1. On 8 November 2020, the general election of the Republic of the Union of Myanmar was conducted under the authority of the Union Election Commission (hereinafter referred to as “UEC”). The “UEC” had not only failed to properly perform their duties but also neglected to ensure free, fair and transparent election.
2. The sovereignty of the power of a nation MUST be derived from the citizens, but the failure of the free and fair electoral process can cause the national sovereignty of the Republic of the Union of Myanmar and the power of people.
3. Refusal to address the caverns raised by several political parties, ethnic groups, and the Tatmadaw, and subsequently calling Pyi Thu Hluttaw (Lower House) and Amyotha Hluttaw (Upper House), as well as (Union Hluttaw) are violations of Article 417 of the Constitution of the Republic of the Union of Myanmar. According to Article 417 of the Constitution of the Republic of the Union of Myanmar, “the wrongful forcible means” of taking power shall cause of the loss of the sovereignty of Myanmar and the unity of the ethnic nationalities in Myanmar. There are many people, whom dissatisfied with the necessitous performances of the “UEC” have conducted peaceful protestation over the performance of the “UEC”.
4. As the Government and “UEC” both failed to address the causes, it is the Tatmadaw’s undeniable duty to exercise Article 417 of the “Supreme Law of the Myanmar” – the Constitution of the Republic of the Union of Myanmar to declare “State of Emergency” in accordance with the Constitution of the Republic of the Union.
5. In order to address the concerned of voters, Government of Myanmar decided to utilize Article 418 (a) of the Constitution of the Republic of the Union of Myanmar, which mandates the transferring of “Legislative, Judicial and Executive Powers” to the Commander-in-Chief of the Defence Services.
6. In conjunction with the Article 417 of the Constitution of the Republic of the Union of Myanmar, this emergency declaration shall remain in force for (one year), effective from today February 1, 2021.

Myint Swe
Pro Tem (President)
Republic of the Union of Myanmar

Source: The Global New Light of Myanmar

Republic of the Union of Myanmar Office of the Commander-in-Chief of Defence Services Notification No. 1/2021

by ECONOMY

Republic of the Union of Myanmar
Office of the Commander-in-Chief of Defence Services
Notification No. 1/2021

5th Waning of Pyatho, 1382 ME
(1 February, 2021)

1. The Union Election Commission failed to address a large difference over the voting list used in the multiparty general election held on 8 November 2020. Although the request was made to call for the special session of the Second Pyidaungsu Hluttaw, it was failed to do so. The President refused the submission for two times to hold the National Defence and Security Council meeting.
2. The Union Election Commission will be re-constituted to continuously take appropriate measures, including checking the voting lists in accord with the law.
3. Prevention of the current outbreak of COVID-19 pandemic will be effectively carried out with momentum.
4. Efforts will be made to recover the businesses caused by COVID-19 pandemic as quickly as possible.
5. Emphasis will be placed as much as possible on restoring eternal peace all over the country in accord with the Nationwide Ceasefire Agreement (NCA).
6. When these tasks have been completed in accord with the provisions of the State of Emergency, a free and fair multiparty general election will be held, and then, the assigned duty of the State will be handed over to the winning party meeting norms and standards of democracy.

Office of the Commander-in-Chief of Defence Services

Source: The Global New Light of Myanmar

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Tamu border still close amid COVID-19 impacts

by TRADING

Kalay-Tamu border between Myanmar and India has not lifted its restriction yet amid the coronavirus impacts, said Chairperson U Hla Maung of Kalay-Tamu Border Chamber of Commerce. The cross-border trade between Myanmar and India has stopped since 10 March 2020. The Tamu border trade was supposed to resume in January, and however, in fact, it is still not back to normal due to the travel difficulties caused by the pandemic. The reopening of the border post would depend on the spread of the virus, and border crossing will be allowed in line with health guidelines.

Myanmar conducts border trade with neighbouring India through Tamu, Reed, and Htantlang land border crossings. Border trade via Tamu is estimated at US$60 million per year. India closed the border checkpoints in Mizoram and Manipur on account of COVID-19, and traders were reeling under the outbreak’s negative impact. Now, the exports through Reed border dramatically soared despite the slump in Tamu border trade. Between 1 October and 22 January in the current financial year, trade values were registered at over $19.44 million at Tamu post and $73.897 million at Reed.

There was no trade recorded at the Htantlang border. According to data, over the past three and half months since October, the India-Myanmar trade jumped to $93.337 million from $44.98 million recorded in the year-ago period on account of a strong export figure at Reed post released by the Ministry of Commerce. 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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Myanmar to export 800 tonnes of honey to EU market this year

by TRADING

Myanmar is preparing for 800 tonnes of honey export to the European Union market in the current financial year 2021-2022, according to the Ministry of Commerce. EU traders proposed Myanmar’s honey due to its organic production. Myanmar started to adopt Good Beekeeping Practices (GBP) in 2016. The EU gave the go-ahead to Myanmar’s honey to penetrate its market. Arise Plus Myanmar Trade-Related Assistance project implemented by the International Trade Centre and the Department of Consumer Affairs Department under the Ministry of Commerce are contributing to the sustainable growth of the honey market, suggestions to penetrate EU market and implementation of GBP, Hazard Analysis and Critical Control Point (HACCP) and Good Manufacturing Practices (GMP).

The project covers eight honey purifying factories and provides the know-how of food safety systems. Additionally, it also helps improve manufacturing quality control in production stages, ensure the honey is free from pests, pesticide and chemical residues, improve GMP in a value-adding chain, link with international buyers and upgrading the laboratory with the assistance of EU. Myanmar’s honey is exported annually to the United States, Canada, South Korea, Singapore, Malaysia, Thailand, China and Japan. The beekeeping business could help reduce the poverty rate in rural areas by creating more job opportunities, officials said. There are over 900 registered beekeepers in Myanmar.

The country produces over 7,000 tonnes a year and yearly ships 30,000 tonnes to foreign markets. A tonne of honey fetches US$1,700-1,900, said the beekeepers. Myanmar’s honey is required to be extracted by the European honey bee (Apis.mellifera) for exports to the EU. It is sent to both domestic laboratory and international laboratories to test pesticide and chemical residue if needed. Myanmar has nine processing factories in Nay Pyi Taw, Mandalay, Yangon and Sagaing regions and Shan State. Of them, a state-owned factory is offering purifying and packaging service for the small-scale honey traders, and the remaining eight factories are processing honey for the domestic market as well as exports. Myanmar produced 10,875.81 tonnes of honey during the past three financial years from 2013- 2014 to 2015-2016, of which 8,471.24 tonnes were exported.

Source: The Global New Light of Myanmar

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Foreign investors buy more than 4502,600 shares of four companies listed on the Yangon Stock Exchange in the past 10 months

by INVESTMENT

Foreign investors have bought more than 4502,600 shares of the four companies in the past 10 months, allowing foreigners to buy shares in companies listed on the Yangon Stock Exchange, according to figures released by the Yangon Stock Exchange. Starting from March 20, 2020, foreigners, Foreign organizations were allowed to buy shares in the Yangon Stock Exchange. As of January 27, 2021, 4502,679 shares were purchased from four of the six companies listed on the Yangon Stock Exchange. The number of shares purchased by each company is 4458,136 shares in First Myanmar Investment Company Limited (FMI); 31973 at Thilawa AS Isaac Holdings Public Limited (MTSH); 7,125 at Ever Flow River Group Public Co., Ltd; 5445 at TMH Telecom Public Co., Ltd. Yangon Stock Exchange (YSX) List of companies that want to invest in shares of companies listed on the Yangon Stock Exchange (YSX). 

Ministry of Finance and Industry The Securities and Exchange Commission issued a notification No. (4/2020). The Securities and Exchange Commission of Myanmar (SEC) has issued Notification No. (1/2019) and Directive No. (1/2020) and allowed foreigners to participate in the daily trading of shares of companies listed on the Yangon Stock Exchange. According to Article 3 (c) of Directive (1/2020), foreigners (including individuals and organizations) wishing to invest must first visit a securities company and obtain a letter of recommendation.  After that, Resident Kyat Account for Securities (R-KAS) for domestic residents and Non Resident Kyat Account for Securities (N-KAS) and Non-resident Foreign Currency Account for Securities (N-FAS) accounts can only be opened in Securities Companies.

Therefore, foreigners wishing to invest in the shares of companies listed on the Yangon Stock Exchange (YSX) open and trade in the bank accounts specified by the Commission. Ministry of Finance and Industry The Securities and Exchange Commission has issued a petition. The Central Bank of Myanmar has issued Directive No. 3/2020 on the requirements for banks to be involved in the daily trading of shares of companies listed on the Yangon Stock Exchange. According to the Notification No. (1/2019) and Instruction No. 1/2020 of the Securities and Exchange Commission, foreigners living in the country and foreigners living in the country will be allowed to trade the shares of listed companies on the Yangon Stock Exchange. Instruction No. 1/2020; According to Article 19, foreigners are required to bring their investment into Myanmar in the trading of shares by Foreign exchange management law, and Foreign Exchange Management Rules and Regulations issued by the Central Bank of Myanmar, the instructions must be strictly followed and supervised by the Central Bank of Myanmar.

Source: Daily Eleven

World-class integrated industrial city being developed in Pathein

by CONSTRUCTION

The Pathein Industrial City (PIC) project is being developed by Ayeyarwaddy Development Public Company Limited in Pathein, Ayeyawady Region. The Pathein Industrial City (PIC) project is being implemented in three phases and is designed to include an international scale industrial zone, a river port, commercial and residential zone. Upon completion of the project, which is being established on 6,700 acres of land along the Pathein-Ngapudaw Road in Pathein Township, Ayeyawady Region, with an investment of US$ 500 million, it is expected to create over one million job opportunities for local people, according to an official from Ayeyarwaddy Development Public Company Limited.

Phase I of the project is being developed as an industrial zone which will cover about 1,200 acres of land, and the construction work has been about 70 per cent finished. The international port is scheduled to be built in the industrial zone project, and it is being developed for a new role in the regional economy. The Phase I of the project covers an area of 1,200 acres of land. At present, the entire 1,200 acres on Phase I are nearing completion and the factories are operational. When the entire Phase I is fully operational, it will provide employment opportunities for between 150,000 and 300,000 local people. Once completed, the project will create thousands of jobs for local people in Ayeyawady Region.

This project will greatly contribute to the economic growth and employment prospects of the whole region according to the Deputy Chief Executive Officer of Ayeyarwaddy Development Public Company Limited. The Pathein Industrial City (PIC) project is located 8 km from Pathein Port, 7 km from Pathein railway station and 17 km from Pathein Airport. The project will include garment factories, rice mills, fish processing plants, glass mills, cold storage facilities, plastics factories, fertilizer factories and furniture factories. Construction of four factories in Phase I of the project has been finished. The construction of garment factories that can employ 3,000 to 5,000 workers has been completed. Four more factories are expected to be completed before the rainy season.

A special garment zone is being built, and about 50 acres for rice production is being researched by China in the project area. Phase I of the project has reportedly been 70 per cent completed, with Chinese, Korean, Japanese and other international companies investing in the zone. Phase II and Phase III of the project will be the future development of commercial, residential and industrial zone which will cover about 5,500 acres of land. Phase II of the project will include affordable housing projects, hotels, resorts and shopping malls. After Phase I of the project, Phase II will be implemented in 2021, including the low-cost housing projects and shopping malls. The developers were urged to conduct environmental and social impacts of the project with the aim of lessening negative effects and take grievances of local people into consideration.

With rapid urbanization of Pathein City and an urgent need for extension of urban residential housings on the west bank of Ngawun River, the Pathein Bridge-2 was built by the Ministry of Construction. The integrated industrial city project is expected to promote infrastructural development and boost tourism in the region. The local government has been attempting to upgrade basic infrastructure projects in the region, pouring the majority of its budget into reconstruction and upgrade of the road networks, to make operational in all seasons. Infrastructural development of a region plays a vital role in helping the country’s GDP increase and uplifting the standard of living of local people. Development of infrastructural projects provides economic growth, creates job prospects for local residents and lifts them out of poverty.

Source: The Global New Light of Myanmar