Passengers holding tourist visas to return by same flight upon entry refusal

by HOTEL & TOURISM

The Ministry of Foreign Affairs released the terms and conditions of tourist visas for entering Myanmar via Yangon International Airport. It said if the decision is made to disallow entry, the passengers have to return by the same flight. The applicants must have the certificate of full vaccination, the colour photo taken last three months and relevant documents.

Moreover, all applicants shall abide by the laws of the Republic of the Union of Myanmar and shall not interfere in the internal affairs of the country. Tourist visas are not permitted for entry and if they are refused entry, passengers have to return by the same flight, it said. All international flight passengers to Myanmar must have certificates of full vaccination, according to the Yangon International Airport.

The Ministry of Health also released a statement regarding public health rules for international tourists on 1 August. Travellers shall have a COVID-19 vaccination certificate showing that they were fully vaccinated at least 14 days before arrival at Myanmar, a negative COVID-19 RT-PCR result and COVID-19 medical insurance purchased from Myanma Insurance and related documents.

Source: The Global New Light of Myanmar

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Mawtaung-Singkhorn border between Myanmar and Thailand reopened

by TRADING

The Mawtaung-Singkhorn land border between Myanmar and Thailand in Taninthayi Region was reopened on 2 August. Officials of the two countries discussed and reopened the Mawtaung-Singkhorn land border only for trade purpose. They still stop the entry and exit for people through the border crossing. It takes only three hours to get to Mawtaung from Myeik.

There is not as much loss in exporting the marine products via that border post as via the Kawthoung route, truck driver U Hla Aung Myint said. Due to clashes near Taninthayi township, the border checkpoint has been closed since April and the authorities of two countries discussed to reopen it now.

The closure of the Mawtaung- Singkhorn border that mainly exports marine products to the fish auction market in Maha Chaing of Thailand led some businesses to suspend temporarily and local fishermen faced hardships and losses, said Ko Tin Lun, a marine products exporter. According to the COVID-19 health rules and statements of the Singkhorn post, the trade can be done from Monday to Saturday daily between 8 am and 4 pm. Every Sunday will be day-off for cleansing processes of the border crossing.

Source: The Global New Light of Myanmar

Delivery services of highway bus lines around Aung San stadium suspended

by SERVICES

The authorities no longer permit cargo services of highway bus lines at Aung San Stadium in Mingala Taungnyunt Township, according to the bus line and cargo transport counters. “The municipal informed that we cannot load, unload and conduct cargo transport services starting 4 August. I think the operation is suspended due to the instructions of the SAC Chairman to launch heavy maintenance on the stadium. We don’t know the reason exactly. We can sell bus tickets.

Not only the counters but also the stalls may be removed,” said an official of the highway bus line. Counters at the Aung San Stadium are branches of the Aung Mingala Highway Bus Terminal and various bus lines are concentrated there. The ban on loading and unloading processes causes difficulties to the business people, he added. “We have to go to the Aung Mingala terminal if we want to send the packages to other regions. There are not many bus lines at U Chit Maung station and we have to pay K1,000 per package a short trip. Counters at Aung San stadium accepts packages of products for those who don’t want to go far and it is convenient for the people.

Now, the delivery services and business people face hardships,” said Ko Wunna Tun, an online seller. The express buses are not allowed to carry 19 types of materials including drones, binoculars, iron materials, wire, solar and power bank. The officials conduct thorough checks at the inspection camps along the road, according to express bus lines. The transport services of express bus counters around the Aung San Stadium play a key role for entrepreneurs from other sides of Yangon, Thakayta, Dawbon, Ahlon, Pazundaung, Lanmadaw, Latha, Pabedan, Kyimyindine township and online entrepreneurs. The counters around the Aung San Stadium have been opening for many years and such closures can lead to many difficulties. 

Source: The Global New Light of Myanmar

Kyat depreciates against Thai Baht

by ECONOMY

Myanmar currency Kyat is weakening against the Thai Baht in the local forex market, forex price data indicated. In early July, the exchange rate for a Thai Baht was valued only at K60, and 1,670 Baht was exchanged for K100,000. On 3 August, the Baht-Kyat exchange rate was 1/70 and 1,460 Baht was worth K100,000. The local currency value is moving downwards following a volatile dollar. Kyat devalued against the safe-haven US dollar at approximately K2,500 on the over-the-counter market at the moment.

There is a gap of K700 between the informal exchange rate (K2,500) and the regulated reference rate set by the Central Bank of Myanmar (K1,850). The domestic gold price is gaining on the global cues. The pure gold fetches up to K2.3 million per tical (0.578 ounce, or 0.016 kilogramme) in the domestic market. Therefore, some money exchange operators and gold traders are under investigation. During the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a record high of K2.22 million per tical in history.

Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability play a crucial role in trade facilitation. The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation in the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. 

Source: The Global New Light of Myanmar

DICA

Companies registered on MyCO top 7,300 in past seven months: DICA

by INVESTMENT

The number of companies registered through the online registry system, MyCO, reached 7,353 in the past seven months (January-July) 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 under the Myanmar Companies Law 2017.

The figures of registered companies stood at 8,011 in 2021, 15,080 in 2020, 17,380 in 2019 and 8,506 in 2018, as per statistics of the DICA. The previously registered companies had to re-register on the MyCO and a total of 46,377 companies were re-registered on the MyCO between 1 August 2018 and 31 January 2019. 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) under Section 97 of the Myanmar Companies Law 2017.

According to 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, over 400 companies are suspended every month for failing 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 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. 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

55 cargo ships to dock in Myanmar in August

by LOGISTICS

The Myanmar government is providing more support to export and import sectors to facilitate the trade flows of locally-produced products. A total of 55 cargo ships will dock at Yangon Port and Thilawa Port in August, according to the Myanma Port Authority.

Myanmar mainly exports maritime products, forest products, agricultural produce and fishery products, while it imports raw textile, construction materials, machinery and commodities. The trade inflows via maritime routes are operating as usual.

As the country boasts of proper sea trade, it benefits the shippers, entrepreneurs, agricultural and livestock businesses and also can create job opportunities. Therefore, 55 cargo ships will dock at five ports in Yangon and two ports in Thilawa Ports this month. 

Source: The Global New Light of Myanmar

Business conditions within Myanmar’s manufacturing sector have declined for three consecutive months, with employment declining for the first time in eight months

by MANUFACTURING

Business conditions in Myanmar’s manufacturing sector declined for three consecutive months, with employment declining for the first time in eight months, according to the S&P Global Myanmar Manufacturing PMI for July 2022. In July, business conditions in Myanmar’s manufacturing sector have been declining for three consecutive months. In addition, the rate of decline was faster than the rate experienced in June. A sharper decline in production and new orders partly drove the strong decline. It also reported that sector-wide hiring declined for the first time in eight months.

In terms of prices, production costs and sales prices, which saw inflationary pressures calm significantly in July, continued to increase overall. The key S&P Global Myanmar manufacturing PMI, a composite index of manufacturing performance, fell to 46.5 in July from 48.2 in June, showing conditions in the sector fell for three consecutive months. Furthermore, the rate of decline was seen as the fastest since October 2021.

Production volumes fell at a faster pace in July and the rate of decline in factory orders accelerated. Members often stressed that buyers’ financial constraints put pressure on new order acquisition. In addition, ongoing material shortages and rising supplier costs have further reduced production volumes and even resulted in temporary factory shutdowns on occasion. Firms cut their workforce in July as production demand eased. The rate of job cuts was modest, but it ended seven straight months of rising hiring rates.

Most firms reported no changes in staffing levels, but those that did reduce staffing indicated that this was linked to salary dissatisfaction among staff and a decrease in order intake. “Buyers’ financial constraints; Product shortages and rising supplier costs are linked to a faster decline in both production and new orders. Also, the number of employees decreased for the first time in eight months, and purchasing activity declined at a faster rate,” said Maryam Baluch, economist at S&P Global Market Intelligence.

Source: Daily Eleven

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Importers restricted access to purchase dollar at regulated reference rate, Trade Dept notifies

by TRADING

Importers are excluded from access to buy hard foreign currency at the regulated reference rate of the Central Bank of Myanmar, Trade Department under the Ministry of Commerce released a notification on 1 August. Importers involved in cross-border trade with dollar settlement are barred from buying the dollars through Foreign Exchange Supervisory Committee when an import licence is granted. Pharmaceutical companies can seek import licences if they can purchase the dollars on the over-the-counter market in their own ways, according to a notification released by the Trade Department on 22 July.

Pharmaceutical importing companies must submit a report to the Health Department through Myanmar Pharmaceutical and Medical Device Manufacturer Association to seek import licences. After scrutinizing them, the ministry will forward them to Foreign Exchange Supervisory Committee. To cut possible delays and ensure decent stocks for consumers, they can also use the black-market dollar for payment instead of buying from formal markets at the regulated reference rate. A letter of commitment signed by a company director has to be submitted to Myanmar Pharmaceutical and Medical Device Manufacturer Association and then, it will proceed to the Foreign Exchange Supervisory Committee.

The committee will make a list of those companies that do not buy dollars through official exchanges and send the list to the Trade Department under the Ministry of Commerce so that the department can grant import licences to those companies, without a Delivery Order. However, those entitled companies that can purchase dollars at the reference rate have to go with normal work procedures. At present, despite the governance on the outflow of foreign exchange, imports surpassed exports in the past four months of the current financial year 2022-2023, the Commerce Ministry’s statistics showed. In the past four months, exports were valued at US$5.2 billion, while import value hit $5.25 billion, indicating a trade deficit of over $46 million.

Source: The Global New Light of Myanmar

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Palm oil wholesale reference rate set at K3,525 per viss

by TRADING

The wholesale reference rate of palm oil in the Yangon market for this week ended on 7 August is set at K3,525 per viss (a viss equals 1.6 kilogrammes), according to the Supervisory Committee on edible oil import and distribution. The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services and issuing the wholesale market reference rate for edible oil on a weekly basis.

The reference rate of palm oil in the Yangon market for a week from 25 to 31 July is set at K3,665 per viss. Therefore, the reference rate is down by K140 compared to last week’s rate. However, the market price is higher than the reference rate. Mobile market trucks operated by 11 companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships starting from 17 July in order to offer palm oil at the subsidized rate of K3,800 per viss to the consumers. However, there are limited sources of supply although they directly sell the palm oil at a reference rate depending on the volume quota.

If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement. The Ministry of Commerce is striving for the consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer a reasonable price to the consumers, maintain price stability and prevent market manipulation. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported from Malaysia and Indonesia.

Source: The Global New Light of Myanmar

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It is announced that allowed foreign companies and foreign joint venture companies to export of high-processed pulses, corn, sesame seeds has been canceled

by TRADING

It has been announced in a newsletter dated July 27 (8/2022) that the processing and export of corn, sesame and pulses allowed to foreign companies and foreign joint ventures have been canceled. On February 4, 2020 (2/2020) it has been allowed to produce for pulses, sesame, corn, etc., as a product that can be processed further.

Now, some foreign companies are promoting pulses, corn, sesame, etc. based on the information in the newsletter (2/2020). It is stated that it has been verified that it is being exported as crops that have been raised and processed without processing. Therefore, it is stated that the newsletter (2/2020) related to the status of the products that can be produced and improved for pulses, corn and sesame has been canceled by this newsletter.

As the Ministry of Commerce, it is stated in the newsletter (2/2020) related to export and import, foreign companies and foreign joint ventures were allowed to purchase two groups of products from manufacturers and export them abroad in order to increase the production capacity by expanding and exporting the products to the foreign market, aimed to increase the production capacity by expanding the export to the foreign market in order to obtain more foreign markets and to obtain a higher selling price for the products.

The seven types of products are (1) clean and peeled chickpeas (whole), cleaned and peeled (parts), cleaned and peeled whole, cleaned and peeled parts, powder (raw/roasted), canned, ready-to-eat, etc. The green bean type includes cleaned and peeled (side), cleaned and shelled whole, cleaned and shelled powder (green/roasted), packaged in canned, ready-to-eat, etc. Sesame type includes sesame powder, roasted sesame powder, shelled sesame, etc.

Source: Daily Eleven