AS it is necessary to continuously control infection of the Coronavirus Disease 2019 (COVID-19),
it is hereby announced that public requests, orders, notifications and directives (except for
easing the restrictions) released by the Union-level organizations and Union ministries up to
31 July 2023 have been extended until 31 August 2023 for prevention, control and treatment of
Coronavirus Disease 2019 (COVID-19).
Source: The Global New Light of Myanmar
Economy
Generally, Myanmar normally consumes about one million tons of edible oils per year in which 0.6 million tons of palm oil are imported annually. In FY 2022-23, 8.3 Million Acres of edible oil crops such as groundnut, sesame, sunflower, and mustard have been grown up and it is estimated to produce more than 680,000 Tons of edible oil for the whole fiscal year. The edible oil sector cultivation and production are called for the local and foreign Investors to invest and government provides tax incentive such as three to seven year tax exemption on income tax for self-sufficiency of edible oil in Myanmar.
Banking and Finance
Central Bank of Myanmar announced to lower Mandatory Conversion of Export Earnings to Myanmar Kyats from 65% to 50% with the Notification 15/2023 on 13th July 2023 which amends Notification 36/2022, issued on August 2022, “Exporters required 65% of the export earnings to be converted into Myanmar Kyats”. Hence, it is the gradual improvement in Foreign Exchange issues and shortage of Foreign Exchange Currency of Myanmar.
With the accelerative effort of the Central Bank of Myanmar on Digital payment system throughout the country in line with National Payments System Strategy (2020-2025), the Financial Technology Payment system has been enormously increased and Mobile financial services and digital payment system of Myanmar including for bank institutions, i-banking, mobile banking, mobile pay and mobile financial services have become remarkably boomed to 31.67 Billion in 2022, which was 47 percent increase compared to the previous year 2021.In order to develop financial services sector, CBM has already permitted those services and launched MMMQR Specification Version 1.0 for QR code payment in January 2019, achieving interoperability between payment systems of financial institutions through MMQR Specification Version 1.0 and stepping up to use crop-border QR code payment interoperability, the notification mentioned. On top of that, the Central Bank of Myanmar, is endeavoring to improve payment service providers’ platforms providing digital transaction services across the country to, especially, Nay Pyi Taw to become a digital city with the latest financial technology. Since May 2023, the CBM has been implementing digital salary payments to the officials and staff under the ministries to strengthen digital payments in the capital city.
The Central Bank of Myanmar has granted licenses to the public in terms of clearing system with QR Code Payment system in areas which are not easily accessible to use. Hence, Digital Payment system is widely available in places, regions, various strata, and various areas where there are no banking services Those clearance licenses are provided to those companies such as Nature Link Pay Co Ltd (brand name: Trusty E-Commerce), Zego Pay Co Ltd (brand name: Zego Money), and Internet Wallet Myanmar Ltd (brand name: OK$) in February, and Universal Pay Co Ltd (brand name: Unipay) in compliance with the terms and conditions of the license on 10 July, according to the statement of the CBM.
A new type of “twenty-thousand-kyat” banknote was officially released in 31st July 2023, with a commemoration of the completion of the Maravijaya Buddha Image in order to propagate the Theravada Buddhism and bring peace towards the country and in celebration of a year birthday of a white elephant, “Rattha Nandaka. Those note will be issued within a limited amount and be distributed only by exchange of the same value with various types of old banknotes that should not be appropriate for circulation in Myanmar. To being with, the old banknotes will be exchanged with the equal value at CBM Nay Pyi Taw, Yangon Branch and Mandalay Branch. As soon as the official announcement is released on 24th July 2023, there is fluctuation in Foreign Exchange Currency at the Market Rate of 1 USD is equivalent to MMK 3,450 and 1 Baht is 100 MMK and 1 RMB is 450 MMK.
Trade
The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement between the ten member states of ASEAN, Australia, China, Japan, the Republic of Korea, and New Zealand, came into effect in January 2022.Since July 2023, the authorized producers and exporters get benefits from preferential tariffs through the Certificate of Origin (CO) Form RCEP. That CO Form is available for products originating in Myanmar and intended for Export to ASEAN member countries, except: the Philippines and Vietnam. Interested parties can easily apply through export and import offices and border checkpoints under the Department of Trade, with established rules and regulations. Besides, for manufacturing related products, traders can obtain approved exporter status through the Online CO Application System (https://onlineco.myanmartradenet.com . Specifically, Cambodia, Laos, and Myanmar have been granted access to preferential tariffs, while Viet Nam receives moderate tariff benefits. Furthermore, the least-developed countries will enjoy additional exemptions as outlined in the United Nations charter supporting the Least-Developed Countries (LDCs), especially CLM countries. According to the agreement, RCEP members have to grant a 65 per cent customs tariff exemption. However, Myanmar, Cambodia, and Laos are only entitled to give a 30-per-cent tax-exempt to other entities a 30 percent tax to other entities. Furthermore, ten years after the agreement’s implementation, members are obligated to grant an 80 per cent tax exemption. Myanmar, however, has been given a transition period of up to 15 years for its trade sector
Online Shopping and sales have been strong since the pandemic periods, however, there is no handle tax issues and controlling over the products. As a matter of fact, Taxes should be paid wherever transactions are conducted. By doing this, it can save taxes for the country. Therefore, in accordance with the Section 4 and Sub-section (c) of the Essential Goods and Services Act, Online Sales have been declared as “Essential Service” by Ministry of Commerce, starting from 4th July, 2023. The Ministry has also empowered to issue prohibition orders, regulatory orders, supervision orders, protection orders, and necessary actions related to this service. This is done in order to restrict and prevent goods and services that may harm the interests of citizens, and to prevent the domestic transportation of goods and animals that may cause dangers, epidemics and unacceptable problems. Violation of the law is punishable by a minimum of six months to a maximum of three years in prison and a fine of not more than MMK 500,000, according to the law.
Energy
Renewable Energy has been enormously used throughout the world in order to fill up the Energy Demands and it’s environmentally benefits so that Governments throughout the World majorly focus on the Renewable Energy Sector. Among renewable energy, the countries have been using Gasohol called biofuel, which is a mixture of Ethanol 5% and Diesel 95%. Not only in European Countries but also in ASEAN Countries has majorly focused on renewable energy and ASEAN Countries planned to have 23% Bioethanol Fuel generation in 2025 and 35% in 2030. In Nationally Determined Contributions (NDCs) report, Myanmar is a country trying to reduce carbon emission by 2030 and start using Biofuel energy. Myanmar will produce 70,000 tons of bioethanol (2 million gallons per month) from Maize and Molasses.
Transportation
Road Transport Administration Department (RTAD) under the Ministry of Transport and Communication released that there are registered 3,206 electric vehicles as of June 2023. Among those, 77% (2,474) are two-wheelers vehicles, 15% (467) are passenger vehicles and 8% (263) are three-wheelers vehicles. Besides, as of June 2023, there are registered 6.3 million (6,366,854) gasoline cars, 512,283 diesel cars, 12,888 CNG cars, 69 LPG cars and 3,884 HV cars. The Steering Committee for the National Development of Electric Vehicles and Related Industries is mainly responsible for establishing policies for the development of electric vehicles and related industries, implementing tax exemptions for use of electric vehicles and provide other reliefs, setting necessary command instructions, rules and regulations and building public charging stations.
COVID As of 31st July 2023, there are (641,053) 639,740 active cases of COVID-19 in which 97 % have been recovered from the disease and compared to previous month, 1313 cases has been increased. Compared to previous month, only 2% active cases have been increased. However, the government has been continuously controlling the infection of COVID-19 and the rules and restrictions have been extended until the end of August 2023 by the Ministry of Health.
The Fisheries Department issued a notice regarding the launch of the Myanmar-Singapore international undersea cable connection project in the Myanmar Exclusive Economic Zone (EEZ). The project is set to span over five months, during which time ships, vessels, fishing boats, and motor boats are strictly prohibited from passing through or anchoring, fishing, and deploying fishing devices in the designated project areas.
The cable connection project will utilize the CS Nusantara Explorer, owned by Campana Mythic Co Ltd, at the Unit 1 location with Rov cables in the Myanmar EEZ. The project commenced on 13 July and is expected to conclude in December.
Campana Mythic Co Ltd, a multinational data network infrastructure operator headquartered in Singapore, was established in 2014. The company boasts an extensive network and infrastructure in Myanmar, Singapore, and Thailand.
To ensure smooth execution and avoid any delays during the project period in the Myanmar EEZ, the Notice to Mariners has been promptly released.
Source: The Global New Light of Myanmar
The Myanmar Embassy to Thailand announced on 20 July that PJ passports in Thailand which will expire on 31 March 2024, must be renewed from 2 August. The appointment tokens for the newly issued PJ passports will be given at the old office gate (the former location) from 8 am to 12 pm every Saturday starting from 29 July. Those who come to pick up the appointment token must bring their passport books, and the token will be issued only after the face match is verified. Therefore, it has been notified that withdrawals by agents will not be granted at all. All visitors are requested to come only in the morning because there are only a small number of PJ passport holders expiring on 31 March 2024, and line up in an orderly manner to obtain tokens.
Source: The Global New Light of Myanmar
Thai Airways International launches flights connecting with the Yangon International Airport.
The Bangkok-Yangon flights by Airbus A320 started on 16 July and the flight aims to promote the services in travelling between Thailand and Myanmar.
The Yangon-Bangkok flights will be operated 14 times a week and the Bangkok-Yangon-Bangkok flight will depart at 9:35 am (local time) and arrive in Yangon at 10:35 am.
Additionally, it will depart from Yangon at 11:25 am and arrive in Bangkok at 1:25 pm (local time). It has also been reported that the round-trip flights between Bangkok and Yangon will be extended from 5 pm to 9 pm.
Currently, there are four round-trip airlines from Yangon to Bangkok, Thailand, with about 1,000 passengers.
Source: The Global New Light of Myanmar
The Department of Urban and Housing Development, under the Ministry of Construction, has announced the commencement of renting for approximately 1,200 apartments, constituting the first phase of the Thukha Dagon Public Rental Housing Project in Dagon Myothit (South) Township.
Retired employees, civil servants, and individuals facing living challenges in Yangon Region will have the opportunity to apply for a five-year residence permit at the newly completed 1,200 apartments in the initial phase of the Thukha Dagon Public Rental Housing Project.
Interested applicants can obtain residence permit forms from the respective township administration offices, complete the required details, and submit the forms to the relevant township administration offices by the latest deadline of 31 July.
The housing project spans 171 acres of land near the intersection of No 2 Highway and No 7 Highway, encompassing 194 buildings with 3,104 apartments currently being constructed in the first phase. For this phase, the Myanmar Construction Entrepreneurs Federation (MCEF) and the Myanmar Licensed Contractors Association (MLCA) have allocated 97 buildings each for construction purposes.
Source: The Global New Light of Myanmar
The Central Bank of Myanmar will issue a new type of “twenty-thousand-kyat” banknote starting from
31 July 2023, and in commemoration of the completion of the Maravijaya Buddha Image, which was built to show the brightness of the Theravada Buddhism firmly shining in Myanmar, for Myanmar to be a focal point of Theravada Buddhism and to bring peace to the country and the world, and in celebration of the one-year birthday of a white elephant, “Rattha Nandaka,” born on 23 July 2022. Such a banknote will be issued in a limited number and will be distributed only by exchange of the same value with various types of old banknotes that should not be appropriate for circulation in Myanmar. Initially, old banknotes will be exchanged for “equal value” at the Central Bank of Myanmar in Nay Pyi Taw, the Yangon branch, and the Mandalay branch. Current valid currency notes and changes will continue to stand as official currency.
Source: The Global New Light of Myanmar
China (Kunming) Import & Export Fair welcomes Myanmar businesspersons, according to the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry.
This 7th China (Kunming) Import & Export Fair, organized by the Ministry of Commerce and the government of Yunnan Province of the People’s Republic of China, will be held between 16 and 20 August at Kunming Dianchi International Convention and Exhibition Centre. Myanmar businesspersons were invited in June.
Mr Xie Ming Gui, chair of the Yunnan Chamber of Commerce in Myanmar and officials of the UMFCCI led by vice president Dr Win Si Thu discussed matters on 17 July for Myanmar’s entrepreneurs from the respective sectors to participate in the fair.
Additionally, famous businesspersons will join the fair. Therefore, Mr Xie Ming Gui invited Myanmar’s businesspersons to showcase Myanmar’s products. Business forums and talk shows will be included in the fair as well.
The fair will be held both online and offline, covering an area of 150,000 square metres with 15 halls. The three-square-metre booth will be charged 6,500 Yuan.
Source: The Global New Light of Myanmar
Myanmar exported goods worth US$2.749 million to Bangladesh through Sittway and Maungtaw borders between 1 April and 7 July of the current financial year 2023-2024, the Ministry of Commerce’s statistics indicated.
Myanmar shipped goods worth $0.95 million to Bangladesh through the Sittway border post and goods valued at $1.84 million via Maungtaw border post as of 7 July this FY.
The value of border trade with Bangladesh over the past three months was $3.678 million, which plunged from $36.113 million in the corresponding period last FY.
Next, Myanmar’s exports to Bangladesh via Sittway and Maungtaw amounted to over $1 million in the second week of July.
Tamarind, plum and fresh ginger were mainly exported via the Sittway border, while the main export items through Maungtaw were agricultural products, fisheries and manufacturing goods. The PVC pipe and PVC tanks were imported via Maungtaw.
Yangon-Sittway Road has a capacity of only 12-wheel and 6-wheel trucks. Despite the distance of 70 nautical miles between the two countries, climate conditions in the rainy season sometimes hinder water transport.
Myanmar conducts cross-border trade with Bangladesh via Sittway-Buthidaung-Maungtaw and Sittway-Angumaw-Maungtaw trade channels, mostly from Kanyinchaung Economic Zone in Maungtaw.
Source: The Global New Light of Myanmar
THE Ministry of Commerce’s Trade Department has announced that producers and exporters in Myanmar
can now take an advantage of preferential tariffs through the Certificate of Origin (CO) Form RCEP. This form is available for products originating in Myanmar and intended for export to Cambodia, Thailand, Brunei, Laos, Singapore, Malaysia, and Indonesia. Authorized traders will be able to enjoy the benefits of preferential tariffs. To obtain the CO Form RCEP, interested parties can apply at the relevant export and import offices and border checkpoints under the Trade Department, as per the established rules and regulations. The Regional Comprehensive Economic Partnership (RCEP), a free trade agreement between the ten member states of ASEAN, Australia, China, Japan, the Republic of Korea, and New Zealand, came into effect in January 2022.
In addition, for manufacturing-related products, traders can obtain approved exporter status through the Online CO Application System (https://onlineco.myanmartradenet.com). Membership in RCEP comes with several trade benefits. The agreement provides tariff incentives based on the development status of each state. Specifically, Cambodia, Laos, and Myanmar have been granted access to preferential tariffs, while Viet Nam receives moderate tariff benefits. Furthermore, the least-developed countries will enjoy additional exemptions as outlined in the United Nations charter supporting the Least-Developed Countries (LDCs).
For example, the agreement grants preferential tariffs to Cambodia, Laos, and Myanmar over other states.
According to the agreement, RCEP members have to grant a 65 per cent customs tariff exemption. However, Myanmar, Cambodia, and Laos are only entitled to give a 30-per-cent tax-exempt to other entities a 30 per cent tax to other entities. Furthermore, ten years after the agreement’s implementation, members are obligated to grant an 80 per cent tax exemption. Myanmar, however, has been given a transition period of up to 15 years for its trade sector. Moreover, the agreement takes into consideration the needs of LDCs and aims to implement commitments while providing customs duty relief. This approach seeks to stimulate trade and investment opportunities, as well as promote participation in regional and global trade and value chains.
Being a member of both RCEP and ASEAN, Myanmar will have access to significant opportunities for
enhancing its international standing. This includes the ability to amend laws, policy frameworks, and regulations to support trade and investment promotion, as well as strengthen the capacities of governmental and private institutions. Additionally, Myanmar’s exports will benefit from expanded access to foreign markets, particularly those in developed and technologically advanced countries such as Japan, the Republic of Korea, Australia, New Zealand, and Singapore. This agreement is expected to attract responsible and accountable large-scale investments into the country.
Source: The Global New Light of Myanmar