Myanmar Industrial Port provides services for 25-35 cargo ships every month to facilitate trade

In order to facilitate exports and imports, Myanmar Industrial Port (MIP) is reportedly handling 25 to 35 cargo ships per month. Myanmar delivers agriculture and livestock products, finished industrial goods and other goods to external markets via the sea trade. The smooth transition of cargo ships and containers is contributing to the mechanism of economic development. There are five important terminals of Yangon Port and two Thilawa terminals in maritime trade in Yangon. International trade depends on 90 per cent of the sea trade during the COVID-19 pandemic.

Myanmar’s government endeavoured to ensure trade facilitation and maritime trade returned to normalcy through a concerted effort. MIP is providing 24-hour services for six ocean liners including Myanmar Five Star Line, with over 700 staff and over 200 wage labourers. MIP gave the go-ahead for export cargo with the necessary documents from Myanma Port Authority. Then, the Customs Department proceeded to the screening process for exports. For the imports, cargo unloaded from ships is temporarily piled up and the owners can withdraw them after the tax payment.

“MIP is delighted with its 24-hour nonstop service to ensure the fast and reliable cargo handling and withdrawal of the containers under the supervision of Myanma Port Author- ity. Three X-ray machines scan the goods and the goods can be withdrawn once they pass the Myanmar Customs. If we move the screening process of exports to Dry Port, it would handle more containers up to nearly 1,000 from over 500. It will increase revenues and make trade faster. That kind of constructive approach in line with global standards in maritime and port will bring about the benefits to the State”, said an official of MIP.

A 20-feet container is allowed to keep at MIP for seven days with daily container service charges of US$2-4. If they remain stranded at the Port for one year, they will be publicly auctioned off. Those containers unclaimed at the Port can wreak havoc on the cargo handling process and trade flow. Myanmar Port Authority and Myanmar Customs Department are implementing a plan to clear those abandoned containers through public auction at Yangon Port terminals. Between January and December 2021, MIP handled over 2,110,000 (20-40 feet) containers and over 307,000 Twenty-foot Equivalent Units. It provided safe and fast cargo loading and unloading services for 230 cargo ships. 

Source: The Global New Light of Myanmar

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Official cattle export channel to China suspended for over 18 months

Myanmar’s cattle export to China stopped for over one and a half years, said U Soe Naing, chair of the Mandalay Region Cattle Exporters Association. The official market of Myanmar’s live cattle export to China has been suspended since late 2020. “The official market came to an abrupt stop in late 2020. Myanmar has halted the live cattle trade. China does not give the green light for live cattle trade,” said U Soe Naing.
Nonetheless, the black market of live cattle is booming in border areas. The cattle seen in China’s border areas originate from Myanmar. The cattle are daily traded on the black market.

For legitimate trade, China permits live cattle import only after ensuring the cattle are free from 20 diseases including foot and mouth disease, along with vaccination certificates, health certificates, and farming registration certificates. Those import criteria do not matter on the black market. Myanmar’s live cattle export relies heavily on the China market due to a good price although Myanmar has other external markets such as Laos, Thailand, Malaysia and Bangladesh. The authorities concerned need to regulate the market and coordinate the needs to generate revenue and increase the income of the cattle farmers and traders. Live cattle export was allowed in late 2017, with a view to preventing illegal exports, creating more opportunities for breeders and promoting their interests.

According to the 2018 cattle census, there are 11.5 million heads of cattle in the country, with 1.8 million buffaloes and 9.7 million cows and bulls, according to the Ministry of Agriculture, Livestock and Irrigation. Additionally, about 1.1 million cattle are mature enough to be placed on the market per year. About 400,000 cattle are required for local consumption, while the remaining are sent to export markets. The Ministry of Agriculture, Livestock and Irrigation will also strive for investments in dairy farming and value-added production businesses. Myanmar shipped US$360 million worth of animal products including cattle to the external markets in the 2018-2019 financial year. The value of animal product exports dropped by $100 million in the 2019-2020 financial year as against a year-ago period, following the negative impacts of the COVID-19.

Source: The Global New Light of Myanmar

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Myanmar to export 2 mln metric tons of rice this FY

Myanmar exports about 200,000 tonnes of rice per month and expects to export two million metric tons during this financial year by cooperating with partner organizations, according to the Myanmar Rice Federation (MRF). The value-added rice is mainly exported to the European market. Although there is no impact on foreign exchange, it affects the rice export to a little extent and so officials make arrangements to overcome certain challenges. Myanmar exports rice to the EU, China, some ASEAN countries and Bangladesh.

There is broken rice demand for export, and the bran and broken rice are provided for the local livestock industry and breweries. Myanmar’s broken is exported to the EU and China most and also to Bangladesh. It still needs to maintain the local demand and export volume. In 2021, the country faced difficulties in currency circulation but this year the situation is better than last year and it hits the rice and farming development sector.

The MRF and rice merchants carried out arrangements regarding trade flows, maintaining a balance between the areas that have the surplus and where are in need and leftover rice in regions to achieve stable rice and broken rice market in July and August. As the local rice price was high at K30,000 per bag for high fertilizer prices, transport charges and a decline in rice mill operations. The prices of broken rice and sticky rice were also on the rise and so the officials made arrangements to gain a stable rice market in the monsoon. The MRF is making efforts to ensure rice and broken rice export, local consumption and a stable market and expects to export two million metric tons this financial year, according to the federation.

Source: The Global New Light of Myanmar

KBZ bank reoperates ATMs in four cities, including Yangon

The Kanbawza Bank announced on 9 June that cash can be withdrawn at 47 KBZ ATMs in four cities, including Yangon. In Yangon, a maximum amount of K300,000 per week can be extracted from the ATMs located at the Kamayut Branch-1-2U, Sule Pagoda Road Branch, Kyaukmyaung Market M-1, 9th-Mile (U3), KTL-M-2, MICT Park Branch (U2), U Wisara Road, Junction City Branch, Sakura Residence, City Mart 6th-Mile, Ocean 9th-Mile, Ocean East Point, Yankin Centre and Super One Kyaikkasan and Hledan Centre. In addition, customers can also withdraw cash from their MPU Debit (ATM card), or by the mBanking Cardless Withdrawal at designated KBZ ATMs in Mandalay, Nay Pyi Taw and Taunggyi. The announcement also said that the list of the expanded ATMs which can issue cash will be announced in a timely manner. Currently, 15 places in Yangon, ten places in Mandalay, 13 places in Nay Pyi Taw and nine places in Taunggyi are set to withdraw cash from ATMs.

Source: The Global New Light of Myanmar

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Companies registered on MyCO exceed 5,300 in past five months: DICA

The number of companies registered on the online registry system, MyCO, totalled 5,323 in the past five months (January-May) 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 keeping in line with 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. 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.

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 have been suspended so far 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

Telenor Myanmar to be renamed Atom

Telenor Myanmar will be renamed Atom, according to a statement from Telenor Myanmar. TELENOR MYANMAR LIMITED was renamed ATOM MYANMAR LIMITED on May 30, the statement said.

The change in name of the company will reflect the aftermath of the transfer of ownership and will continue to create greater business opportunities for organizations and individual customers with better telecommunications services, enhancing support into a wider market, Telenor said in a statement.

The name change will not affect the services, Telenor said. Telenor Myanmar, formerly owned by Norway-based Telenor Group, was sold in March this year to M1 Group in Lebanon for $ 105 million. Telenor Myanmar was taken over by M1 Group and its local partner, Shwe Vyin Phyu, with 49 per cent owned by Shwe Vyin Phyu.

Source: Daily Eleven

Dollar hits over K2,000 at exchanges despite CBM reference rate at K1,850

The unofficial exchange rate against the US dollar stands at over K2,000 on the over-the-counter market although the Central Bank of Myanmar (CBM) set the reference exchange rate at K1,850, according to local forex traders. To strengthen the Kyat value in the local forex market, the CBM set the exchange rate margin within 0.5 per cent of the reference rate for the transaction, selling or buying, according to a notification issued by the CBM on 9 November. Consequently, financial institutions including the banks and informal money exchanges set a dollar value at K1,781 for buying and K1,786 for selling.

Consequently, financial institutions including the banks and informal money exchanges set a dollar value at K1,850 for buying and K1,855 for selling. Nevertheless, the dollar was traded only between K2,058 and 2,068 on 1 June in the informal financial market. The CBM sold US$95 million at its auction market within three months this year for edible oil, fuel oil and pharmaceutical sectors, to govern the market volatility. A total of $443.8 million were sold at an auction rate in 2021 as well. Last 28 September 2021, a dollar value hit an all-time high of over K3,000 in the black market and consequently, the pure gold reached a record high of K2.22 million per tical (0.578 ounce or 0.016 kilogramme) 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 the trade facilitation. The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules not in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal procurement of foreign currency, illegal trade and taking legal actions against price manipulators. Furthermore, the officials concerned will crack down on those people involved in charging a percentage for money withdrawals at banks as shadow money.

Source: The Global New Light of Myanmar

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Chinese fruit trucks inspected on the Burmese border can now travel to China without further inspection

Fruits and vegetables are imported into China through the Qin San Gate in Myanmar. On June 1, the Chinese government approved a waiver of goods that can be inspected at the Wanding Valley Orchard in China without the need for further inspection of goods that have been tested for residues and disinfection. In the past, fruits imported from the gates of Kyin San Kyaw Gate in Burma were subject to the COVID regulations at the border. Fruits that have passed the pesticide and disinfection test will be allowed to continue to check out domestic vehicles from the Changhua Fruit Market, and only after passing the medical examination will they be allowed to leave anywhere in China.

“Domestic departure means that cars sold directly from the Chan Ho orchard will be able to leave directly. In the past, you could only leave after a medical examination, ”said Sai Khin Maung. Previously, the mango market suffered losses due to the longer days, but now the mango market has become more active due to the easing. “In the past, you could only leave after a medical examination,” he said. Because it takes days. Two or three days have passed. Due to these days, the quality of mango products was low. It’s a lot faster now. The market situation is that fresh mangoes are cheaper, ”said Sai Khin Maung.

In China’s Wandingchang Ho Fruit Market, depending on the quality, gold, A diamond costs between 80 and 140 yuan each, compared to the same period last year. “The situation is no different from last year,” he said. It has to be done in the midst of difficulties. Various adventurous challenges have to be done. Agricultural input costs are higher than last year. This year is like this. Just like last year. During the COVID period, we had to work in the midst of difficulties. 100% is not good at all. It is a difficult time. And people who dare to work will benefit. The main thing is the quality of the fruit, ”said Sai Khin Maung.

At present, an average of 10 to 15 trucks loaded with mangoes enter the Northeastern Gate Public Company Limited Fruit Market in the 105-mile trade zone every day, and the mango market in Myanmar is a bit dynamic depending on the quality of mangoes, with the rapid departure of domestic goods from China’s Changhua Fruit Market, according to mango growers. As a result of the easing, the entry and exit points at the border crossing have risen slightly, with an average of about 20 Burmese trucks leaving for China, and about 20 trucks re-entering from China, with an average of 70 to 80 trucks a day, including unloaded trucks. “In China, I think the war will be fought according to the rules,” he said. If it’s fast, it’s not that fast. 

Now the truck is getting in and out fast, but it is still seven or eight days away. But it went a little faster. But it is not significant yet, ”said Maung Sein, in-charge of Shwe Lwe In Stadium. Many lockdowns are being eased in China. Traders said that while the unloading of Burmese trucks was being arranged and the departure arrangements were being made, and the beans being shipped in containers were easy to get in and out of, but the cost of returning Burmese trucks was about 1,500 yuan and about 25 lakh unnecessary extra costs on the Burmese side. Combined with the legal costs and the undesirable unnecessary extra costs, the average cost of a truck is around 25 lakhs. A trader in Muse said the costs could ultimately have a huge impact on consumers and could lead to higher commodity prices, prompting a thorough investigation into the need to facilitate not only exports but also imports.

Source: Daily Eleven

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The Kawthoung-Ranong border reopened on 1 June

The Kawthoung-Ranong border post reopened on 1 June after more than two years of closure. Myanmar and Thailand have agreed to allow the people from the two countries to stay two-night three days with a border pass in Ranong, a town in southern Thailand.

Holders of PV passports, those who are going to study in Thailand, and those who have had a three-month visa from the Thai Embassy in Yangon are now able to go to Thailand through Kawthoung. As a travel expense, THB 500 for a boat fare from Kawthoung to Ranong, K300 for a stamp in Myanmar and THB150 for Thailand.

Passport holders will not be required to pay THB2,000 as the deposit, while those who will visit Thailand for seven or 15 days will be required to pay the deposit and they will be able to withdraw it when they arrive back in Kawthoung, according to Ma Win Yi, a Ranong resident. On 24 May 222 Myanmar workers were sent to Thailand under the MoU system through the Kawthoung-Ranong border.

Source: The Global New Light of Myanmar

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Business Leader Roundtable 2022: Future for int’l business in Myanmar

Date: 9 June, 2022 (Thursday)

Time: 6:00 PM – 8:00 PM UTC+08

Venue and registration: The entire Roundtable would be conducted via Zoom. Registration details will be sent to members via email.

Panellists:
– Anthony Aung, Special Adviser, Smart Way
– Josephine Price, Chair, MPE&VCA
– Karina Ufert, CEO, EuroCham Myanmar
– Shinsuke Goto, CEO, Trust Venture Partners
– Thompson Chau, Editor-At-Large, Frontier (Chair)

Details: This year’s theme “Future for international business in Myanmar” seeks to assess the future of foreign businesses in the country and their implications for the broader economy. The event is held under the Chatham House rule and is open only to members of Frontier and event partners.

Contact: Membership team: members@frontiermyanmar.net