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400 companies fail to submit AR in March

by INVESTMENT

A total of 400 companies failed to submit annual returns (AR) on the online registry system in March, MyCO, according to the Directorate of Investment and Company Administration (DICA). The DICA notified any registered company which fails to file its AR on MyCO will be struck off the register from the date of the directive under Section 430 (F) of the Myanmar Companies Law. Five hundred companies in January and 400 in February did not file the AR on MyCO. Additionally, 5,000 companies failed to submit AR in 2022, the DICA stated. The registration and re-registration of companies on the MyCO website commenced on 1 August 2018 under the Myanmar Companies Law 2017.

All registered companies need to submit 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) under Section 97 of the law. Under Section 266 (A) of the Myanmar Companies Law 2017, public companies must submit annual returns and financial statements G-5 simultaneously. All overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year ending, under Section 53 (A-1) of the Myanmar Companies Law 2017. As per DICA’s report, thousands of companies were suspended for failing to submit AR forms before 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 which 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 for restoration of the company on the Register, and K100,000 for late filing of documents, totalling K250,000. 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

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MoC: over 10,000 commodities lines compulsory for export/import licences

by TRADING

The Ministry of Commerce made over 10,000 commodities lines mandatory for export/import licences.
The MoC released this directive dated 31 March, in the exercise of the power conferred by Section 4 (C) and Section 13 (B) of the Export and Import Law. According to Notification 84/2022 dated 12 October, under the Customs Tariff of Myanmar 2022, 1,556 commodities lines with 10 digits HS Code for export and 8,774 for import are required to be applied for export/import licences on the Myanmar TradeNet 2.0 portal.

Only after traders of those items have received a licence first in line with the export/import regulations through the non-automatic licencing process, the shipment by air, sea and road will be given the green light. This directive came into effect starting on 1 April. It is an amendment of directive 51/2020 dated 8 July 2020. Similarly, directive 32/2022 dated 2 May 2022 was cancelled with this amendment incorporated.

Those who have sought export and import licence and permits on TradeNet 2.0 platform through TradeNet 2.0 system are mandatory to withdraw licences within set periods and they will be fined for late withdrawal, the Trade Department under the Ministry of Commerce released Notification 5/2023 dated 27 February. The licence applicants need to make payment and withdraw the licence within seven days of approval by the department. Those who fail to do so will be cancelled automatically, according to the Export/Import Notification 4/2022.

However, the timeline for striking off from the system will be changed to three months instead of seven days. In addition to licence fees, fines are to be paid K45,000 for eight to 14 days, K90,000 for 15 to 30 days, K180,000 for two months and K360,000 for third months. During the auto cancellation period for licence/permit processing, the applicants will have their licence temporarily suspended for six months if they fail five times in three months, Notification (20/2020). Exporters and importers are therefore suggested to withdraw their licences within seven days. Auto cancellation of licence seeking process and temporary suspension of licence commenced from 1 March, the Trade Department stated. 

Source: The Global New Light of Myanmar

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Octane prices jump in domestic market

by ENERGY

The prices of Octane 92 and Octane 95 showed a sharp increase of K100 per litre within one day in the domestic fuel oil market. On 3 April, the prices stood at K2,105 per litre of Octane 92, K2,185 for Octane 95, K2,065 for diesel and K2,145 for premium diesel. On 4 April, the prices touched a high of K2,250 for Octane 92, K2,310 for Octane 95, K2,160 for diesel and K2,240 for premium diesel. The figures indicated an increase of K145 for Octane 92, K125 for Octane 95 and K95 for diesel and premium diesel.

The domestic fuel prices are set depending on the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. In August 2022, the oil prices surged to K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,330 for premium diesel and K3,245 for diesel. The committee is therefore governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and to ensure price stability for energy consumers.

The Petroleum Products Regulatory Department, under the guidance of the committee, is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate in Yangon Region is set on the MOPS’s price assessment, shipping cost, premium insurance, tax, other general costs and health profit percentage. The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the retail reference rates daily covered on the state-run newspapers and are posted on the media and official website and Facebook page of the department daily starting from 4 May.

The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging rather than the set reference rate. As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. The domestic fuel price is highly correlated with international prices.

The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those of regional countries. Some countries levied higher tax rates and hiked oil prices than Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also levies only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. 

Source: The Global New Light of Myanmar

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Rice price move upwards in domestic market

by TRADING

The prices of rice that are mainly consumed locally continued to rise, according to the Wahdan Rice Wholesale Centre. At the end of March 2023, Pawsan rice prices moved in the range between K72,000 and K90,000 per bag depending on the producing areas (Shwebo, Myaungmya, Dedaye, Pyapon and Pathein).

Meanwhile, the prices stood at K77,000 per bag for Kyapyan, K64,500 for Khunni, K54,000 for Ngasein, K59,000 for short-mature rice (90 days), K54,000 for Emahta, K65,000 for Pawkywe and K53,000 for rice grown under intercropping season. The prices of Pawsan rice climbed up to K75,000-93,000 per bag on 3 April. The prices of various rice varieties were up by K1,000-3,000 per bag within three days.

An increase in paddy prices drove rice prices up. Starting from 3 August 2022, Myanmar Rice Federation, Myanmar Rice Producers and Planters Association, Myanmar Rice Millers Association, and traders and brokers engaged in Wahdan Rice Wholesale Centre and Bayintnaung Rice Wholesale Centre have been working together to offer fair prices for Shwebo Pawsan from K75,000-77,000 per bag and other rice varieties to the consumers at the Wahdan Wholesale Centre.

The offer prices are K52,000-55,000 per bag of Pawsan from the Ayeyawady area, K55,000-60,000 per bag of Kyapyan, and K35,000-37,000 per bag of short-mature rice varieties (90 days) at the Wahdan Rice Wholesale Centre. Each household can buy only one bag. Those traders and retailers are not entitled to buy them.

Source: The Global New Light of Myanmar

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YRIC nods 11 domestic, foreign enterprises on 29 March

by INVESTMENT

The Yangon Region Investment Committee (YRIC) endorsed two domestic and seven foreign enterprises in the manufacturing sector and two foreign enterprises in the service sector, with an estimated capital of over US$11.606 million at a meeting 3/2023 held on 29 March at YRIC office.

Those projects will execute warehousing services and logistics services, hotel service business, rice milling and processing, manufacturing of clothes on a Cutting, Making, and Packing (CMP) basis, electrical wires, and production and exportation of aluminium, tin and copper. They will create over 4,000 jobs for the residents.

The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis. At the meeting, Next, 12 companies raised general matters at the meeting and the YRIC gave green light to one enterprise for capital expansion of $0.62 million. 

Source: The Global New Light of Myanmar

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Service fees for trademark registration applications defined

by TRADING

In accordance with the trademark law, the fees to be paid according to the types of service related to the trademark registration application were published on 1 April. According to sub-section (j) of Section 8 of the Trademark Law, the fees to be paid for the type of service in connection with the application for trademark registration in line with the agreement of the Union Government are: K150,000 for the examination of acceptance of trademark registration application (TM-1), K100,000 for the review of reinstatement of an application due to failure of prescribed rules (TM-3) and K50,000 for the amendment of request for correction of error in an application (TM-4).

In addition, K50,000 for the request to limit the list of goods/services in an application (TM-6), K100,000 for the request to divide an application for registration (TM-7), K150,000 for the application to oppose a trademark application (TM-8), K50,000 for the request for certified copy of registration certificate (TM-9), and K50,000 for the request for amendment of registration of a trademark (TM-10), will be charged.

Furthermore, K300,000 for the application for renewal of trademark registration (TM-11), K100,000 for the application to register a transfer of ownership (TM-12), K100,000 for the application to register a licence of trademark (TM-13), K150,000 for the application for invalidation of a registered trademark (TM-15), K100,000 for the application for cancellation of a registered trademark (TM-16), K20,000 for the request for change of representative or agent (TM-17), K50,000 for the request for extension of time (TM-18), and K500,000 for the application for appeal (TM-19) must be paid. It is announced that the fees for the types of services related to trademark registration applications will be revised and published from time to time. 

Source: The Global New Light of Myanmar

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Republic of the Union of MyanmarAnnouncement of Central Committee on Prevention, Control and Treatment of CoronavirusDisease 2019 (COVID-19)

by COVID

11th Waxing of Tagu 1384 ME
31 March 2023

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 March 2023 have been extended until 30 April 2023 for prevention, control and treatment of Coronavirus Disease 2019 (COVID-19).

Source: The Global New Light of Myanmar

Thailand to allow only 14 visa-free days

by HOTEL & TOURISM

According to the statement of the Myanmar Embassy in Bangkok, those who will visit Thailand will be allowed to stay only for 14 visa-free days. Previously, visitors to Thailand were granted 45 days without having to apply for a visa in advance, but from 1 April onwards, they will be allowed to stay for 14 visa-free days. During the period from 1 October 2022 to 31 March 2023, foreigners with a visa-free agreement (including Myanmar) can stay up to 45 days and those with visas on arrival are allowed to stay for up to 30 days. However, those who want to stay longer can apply for a visa at the Royal Thai Embassy in Yangon, as only 14 visa-free days will be allowed starting 1 April. 

Source: The Global New Light of Myanmar

Kyat depreciates at K2,870 against US dollar in black market

by ECONOMY

Kyat depreciation against greenbacks persists at K2,870 in the grey market although the Central Bank of Myanmar set the reference exchange rate at K2,100. CBM has set the currency trading band at 0.3 per cent for the Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying, according to a directive issued by the CBM on 10 August 2022. Therefore, financial institutions including banks and informal money exchanges are instructed to set a dollar value at K2,094 for buying and K2,106 for selling.

However, the over-the-counter Kyat-dollar exchange rate was K2,855 for buying and K2,870 for selling on 31 March. There is a large price difference between the reference rate of the CBM and the unofficial market rate. However, there is no way to set the new price, as per the notification released on 15 December. Investigation and Prosecuting of market manipulation to hike the exchange rate in the local forex market with the malicious rumours will be undertaken, according to the Central Bank of Myanmar’s statement released on 10 February.

Some exporters, importers and banks are attempting to raise the exchange rate owing to the rumours. The statement called for bank institutions to govern the market and investigate those fraudsters who circulate rumours. The CBM released a notice that the exporters, importers and banking institutions are asked not to elevate the exchange rate. Those banking institutions that will not abide by financial regulations will face legal action as well. Last August, a dollar value hit an all-time high of over K4,500 in the grey market. Consequently, the CBM sold dollars at its auction market for the sectors in need, to control the soaring dollar. A total of $443.8 million were sold at an auction rate in 2021 as well. 

Source: The Global New Light of Myanmar

Octane surpasses diesel in prices

by ENERGY

The fuel prices dip in the domestic market tracking the slump in world oil prices. The octane exceeded diesel significantly in price. The prices moved slightly down to K2,037 per litre of Octane 92, K2,128 for Octane 95, K2,007 for diesel and K2,081 for premium diesel on 29 March. The price stood at K2,145 for Octane 92, K2,240 for Octane 95, K2,110 for diesel and K2,190 for premium diesel on 28 March. Diesel is commonly used in generators and agricultural machines.

Consequently, demand is higher than before. As a result of this, there is difficulty in purchasing in the industrial sector. Therefore, some hike up rent for agricultural machines for unreasonable assumptions despite the decrease in diesel price. The diesel price hit a high of K3,245 per litre in August 2022. This month, diesel price hovers at approximately K2,000 per litre.

The price difference between diesel and Octane has narrowed. Earlier, diesel surpassed Octane in price. Some businesses consume diesel as commercial power supplies were restricted to a certain extent in March. Yet, they can save some costs amid the diesel price decline. I anticipate the diesel price to stay low like this for a long time, Ko Htaw, a truck owner told the Global New Light of Myanmar. 

Source: The Global New Light of Myanmar