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Myanmar-Thai border trade drops $76 mln in mini-budget year

by TRADING

Trade volume between Myanmar and Thailand in the 2021 minibudget year (October-March) hit a total of US$72.67 million in total, according to the Ministry of Commerce. Compared to the same period of the 2020-2021FY, this minibudget year’s figures declined by $76 million. The bilateral border trade hit $148.78 million last year.

The country’s export to Thailand reached $32.19 million, while imports hit $40.48 million, Ministry of Commerce statistics show. The county mainly conducts border trade with Thailand through seven land borders – Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei. From 1 October 2021 to 8 October 2022, Myawady border point topped the trade with $55.9 million, followed by Kawthoung with $7.99 million and Myeik with $5.9 million.

Among three border trade checkpoints along the border between Myanmar and Thailand, the Myawady-Mae Sot route is the most important, carrying around 70 per cent of trade between the countries. Myanmar’s export to Thailand were primarily agriculture and livestock products, and imports from Thailand were mainly non-alcoholic beverages, fabric and yarn, motorcycles and related parts, and construction materials. Thailand is Myanmar’s secondlargest trade partner and third-largest foreign investor. Meanwhile, Myanmar is conducting border trade with neighbouring India, China and Bangladesh via a total of 16 border checkpoints.

Source: The Global New Light of Myanmar

On October 22, the central bank sold $ 30 million at a foreign exchange auction, with an average exchange rate of 1,800 kyat

by ECONOMY

On October 22, 2021, the central bank sold $ 30 million at a foreign exchange auction, with an average exchange rate of 1,800 kyats. On October 18, the Central Bank of Myanmar sold a record $ 50 million a day at a foreign exchange auction, with an average exchange rate of 1,820 kyat. The Central Bank of Myanmar has sold up to $ 264.8 million in foreign exchange auctions from February 1 to October 22, 2021, according to data released by the Central Bank of Myanmar. The central bank sold $ 6.8 million in February 2021 at a foreign exchange auction, but not in March. $ 12 million in April; $ 24 million in May; $ 12 million in June; $ 39 million in July; 28 million in August; It sold $ 63 million in September.

Rules for Central Bank Competitive Auction Instructions have been set out and these rules and regulations are in place. In accordance with the instructions, the foreign currency licensed (AD) banks involved in the foreign currency auction are: three state-owned banks; Buying foreign currency with 19 local private banks and 13 foreign bank branches; And sales. The Central Bank of Myanmar’s foreign exchange operations include short-term exchange rate fluctuations; Comparing the exchange rate of Myanmar kyat with one US dollar to the previous day reference exchange rate to reduce depreciation; By comparison, the percentage devaluation of the Myanmar kyat exceeds the stipulated level (opening a competitive auction for the sale of US dollars, the percentage of appreciation of the Myanmar kyat exceeds the stipulated conditions).

Comparing the average Myanmar kyat to the US dollar exchange rate; By comparison, the percentage increase in the value of the kyat against the conditions set by the government has led to the opening of competitive bidding for foreign currency (dollars); To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. For sale Short-term rise in foreign exchange rates; To reduce overcrowding. Opening a tender to buy foreign currency (dollars) if it exceeds the limit; 

To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. For sale Short-term rise in foreign exchange rates; To reduce overcrowding. Opening a competitive auction to buy foreign currency (dollars) in excess of the limit; To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the central bank using Refinitiv (formerly Thomson Reuters) auction system. For sale Short-term rise in foreign exchange rates; To reduce overcrowding. Rise in foreign exchange rate; To reduce overcrowding. Rise in foreign exchange rate; To reduce overcrowding.

Source: Daily Eleven

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200 companies struck off register due to AR absence in mid-Oct: DICA

by INVESTMENT

A total of 200 companies was struck off the register in mid-October as they fail to submit an annual return (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). The DICA has notified any registered company which fails to submit its AR on MyCO are to be suspended. The DICA found that 200 companies failed to restore their status within six months of suspension under 430 (F) of Myanmar Companies Law in September. The companies were struck off the register starting from 11 and 15 October respectively. Also, 900 companies were struck off in July, August and September, according to the DICA’s notification.

All registered companies need to file 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), according to Section 97 of the law. 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, as per Section 53 (A-1) of the Myanmar Companies Law 2017. As per DICA’s report, more than 16,000 companies were suspended 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 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. The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, in keeping with the Myanmar Companies Law 2017. The number of companies registered on the online registry system, MyCO, topped more than 2,000 in the first half of this year. Earlier, MyCO received more than 1,000 applications from new companies every month. At present, 100 per cent of the applicants are using the online registration platform, according to data provided by the DICA.

Source: The Global New Light of Myanmar

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Two border trade posts in Rakhine State resume, opening business opportunities for fish farmers

by TRADING

Export of fishery products from Sittway to Bangladesh, which was suspended almost three months due to the skyrocketing infection rate of the COVID- 19 disease, has resumed since 18 October, opening up business opportunities for fish farmers and entrepreneurs. In the 2019-2020 financial year, 7,093.413 metric tons of freshwater fish worth US$ 6.318million were imported through this border.

As the COVID-19 cases were on the rise, exports from Rakhine State to Bangladesh were suspended from 15 July 2021, while 5,010.7 metric tons of freshwater fish worth $ 4.760 million were shipped to Bangladesh. Through two border trade posts in Rakhine State, Myanmar mainly exports onion, tamarind, dried plum, dried fish and freshwater Rohu fish, and about 70 per cent of the export value of Rakhine State is the freshwater Rohu fish.

The regional government of Rakhine State has made efforts to reopen two suspended trade posts in Rakhine State and it was allowed to reopen under the COVID-19 rules and regulations by the State Administration Council on 12 October 2021. Following the coordination meeting of the Ministers of the Rakhine State government, officials from relevant departments and the Rakhine State Chamber of Commerce and Industry, border trade camps have been opened since 14 October with amended regulations to revive the border trade.

Fishing vessels from Yangon have arrived in Sittway on 17 October and the Rakhine State Fisheries Department has conducted necessary screenings. Beginning 18 October, 44.80 metric tons of freshwater Rohu fish worth $ 53,904 were exported to Bangladesh. Reopening of the border trade camps in Rakhine State is benefiting fish farmers in Yangon and Ayeyawady regions whose farms were affected amid a surge in the COVID-19 outbreak, in addition to generating foreign income for the country and opening business opportunities to fish farmers, entrepreneurs, and residents.

Source: The Global New Light of Myanmar

YGEA discusses paper gold investment

by ECONOMY

Yangon Region Gold Entrepreneurs Association (YGEA) is making an effort for paper gold investment at a bank over physical metal, the association stated. The association met the officials of Shwe Bank on 16 October regarding the paper gold scheme.

Paper gold is an asset that reflects the price of gold without physically owning the gold. A gold certificate will be issued by the Bank to the investors, said U Myo Myint, chair of YGEA. The paper gold investment can be seen in international trading. To implement this scheme, the association submitted a report to the Central Bank of Myanmar. Laws and rules are required to be drafted again.

Paper gold trading is a safe investment that guarantees the quality and value of the asset, held by the bank. At present, the price of gold in the domestic market remains in a high trend, tracking the spike in global prices and Kyat weakening on the US dollar. The price of precious pure gold metal touched a high of K1,840,000 per tical (0.578 ounces, or 0.016 kilogrammes), as per the YGEA. The global gold price stood at above US$1,766 per ounce, while a US dollar exchange rate was around K2,000.

Source: The Global New Light of Myanmar

CBM sells $50 million on 18 Oct

by ECONOMY

The Central Bank of Myanmar (CBM) sold US$50 million at its FX auction rate of K1,820 on 18 October. The CBM sold the foreign currency to the prioritized sectors (palm oil, fuel oil and pharmaceuticals) at an auction rate through the authorized banks. The CBM sold the US dollars at the set rate to the banks with the authorized dealer license where the companies screened by National Trade Facilitation Committee opened an account. In September, the CBM sold 63 million dollars to the private banks to steer the local currency value.

Last September- end, a dollar value reached the highest of over K3,000 in history. The exchange rate on the US dollar hit around K2,000 in the local forex market at present, as per money exchangers. In August, the CBM reportedly sold $28 million at its auction rate. Kyat is weakening in the local forex market. In a bid to control the dollar gain against Kyat, the CBM sold about 6.8 million dollars on 3 February 2021, $12 million in April, $24 million in May, $12 million in June and $39 million in July in the auction market, respectively.

The US dollar exchange rate stood only K1,330 in January- end, whereas it rose to K2,000 at present, recording an increase of K700 in ten months. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335- 1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April. The rate fluctuated between K1,585 and K1,730 in May and it moved to the maximum of K1,595-1,620 in June. The rate stood at K1,626- 1,670 in July. It hit the lowest of K1,660 and the highest of K1,682 in August. Last month, the rate edged up to K3,200 and fell to K1,696.

Source: The Global New Light of Myanmar

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Myanmar mineral exports down by $975 mln in 2020-2021FY

by TRADING

THE value of Myanmar’s mineral exports drastically sank to US$895.6 million last FY2020- 2021, reflecting a drop of $975 million, the Ministry of Commerce’s data indicated. The mineral exports hit over $1.87 billion in FY2019-2020. The coronavirus related disruptions led to the slump in mineral exports this FY. The heightened COVID-19 measures also shut down the events like gem emporium and expo last year, a trader said. Additionally, Lonekhin, Phakant, Mawlu and Mawhan gem and jade mining in Kachin State will be temporarily suspended from 1 October 2021 to March end 2022 to support sustainable resource extraction, and ensure safe and efficient operation of jade and gems mines, according to Myanma Gems Enterprises.

So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, mostly in Mandalay and Sagaing regions, according to the Ministry of Natural Resources and Environmental Conservation. Due to the limited extraction of natural resources, exports of forest products and minerals had dropped significantly in the previous years. Permits for mining blocks were suspended in 2016, but after two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry. The Myanmar Mines Law was enacted on 24 December 2015, but the law came into force when the rules were issued on 13 February 2020.

Under the new regulations, foreign firms can invest in large blocks which cover up to 500,000 acres (about 202,000 hectares), while local firms can invest in all kinds of blocks. Investors can seek a permit to mine for minerals such as gold, copper, lead and tin. The permits cover prospecting, exploration, and production. Myanmar’s mineral exports have shown a marked increase in the FY2019-2020, touching $1.87 billion, an increase of $405.48 million compared with the year-ago period, according to data from the Ministry of Commerce. Oil and natural gas are included in the list of major export items of Myanmar. About six per cent of the country’s total export earnings come from the sale of natural gas. About 80 per cent of mineral products are shipped to external markets through sea trade, while 20 of them are sent to neighbouring countries through border trade channels.

Source: The Global New Light of Myanmar

CBM needs to stabilize dollar exchange rate: MPTA

by ECONOMY

The central bank of Myanmar (CBM) needs to stabilize dollar exchange rate, said U Win Myint, chairman of the Myanmar Petroleum Trade Association (MPTA). The main thing is the dollar exchange rate to be stable in the market. If the authorities can arrange this matter, it would be fine. Now people are only looking to buy US dollars in the foreign market, with almost no one willing to resell. That’s why, it would be good if the CBM could manage a stable market system to deal with this situation. The authorities are not talking about to sell them at low price. The exchange rate should be selling at a reasonable price, said U Win Myint.

The domestic fuel oil price hike is attributed to the devaluation of Kyat in the foreign market. Currently, the US dollar exchange rate still reached a record high in Myanmar of around K2,000 per dollar. The fuel oil was pegged at around at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Then, it remarkably climbed up to K1,455 for Octane 92, K1,490 for Octane 95, K1,465 for diesel and K1,470 for premium diesel on 26 September 2021, according to the local fuel oil market.

There is a remarkable price gap of K800 per litre, according to the local fuel oil market. Starting from 22 September, Myanmar Petroleum Trade Association (MPTA), in cooperating with the Ministry of Commerce have sold fuel oil at fair prices, is equivalent to the amount that the oil importers directly purchased the foreign currency from the Central Bank of Myanmar, aiming to offer reasonable rate, according to the association. The association sold about 44,500,000 litres of fuel oil from 22 September to 13 October. And, about 8.9 million litres remain to be sold in the market. Myanmar imports around 6 million tonnes of fuels yearly, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar

There were over $ 3,100 million of foreign investment in Myanmar’s energy sector in fiscal year 2020-2021

by ENERGY

From October to the end of September of the 2020-2021 fiscal year, more than $ 3,100 million in foreign investment in Myanmar’s energy sector, according to the Directorate of Investment and Company Administration. By 2021, Myanmar’s Generation Mix will generate 40 percent of its electricity from hydropower, 34% from natural gas.

Solar will account for 14 percent and will increase to more than 8,100 megawatts, according to the Ministry of Power and Energy. Myanmar had only 34% access to electricity before 2016, but will increase to 56% by 2020.  According to the Ministry of Power and Energy, efforts are being made to achieve 75% of the country’s electricity by 2025 and 100% by 2030. Myanmar’s energy resources are mainly based on renewable energy such as hydropower and solar energy and clean energy such as natural gas and LNG.

Upper Kengtung Hydropower Project, 51 MW for Myanmar’s electricity needs; 280 MW Upper Yeywa Hydropower Project; According to the Ministry of Power and Energy, four projects are underway: the 152-megawatt Central Paunglaung Hydropower Project and the 111-megawatt Thu Htay Hydropower Project. In 2016, the Ministry of Electricity and Energy generated 48,000 megawatt-hours per day from various sources and is now increasing to 65,000 megawatt-hours per day. It is generating 3,225 megawatts of electricity from 28 hydropower plants.

Source: Daily Eleven

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One million doses of COVID-19 vaccine from China arrive at Yangon Int’l Airport

by COVID

The Ministry of Health is delivering the COVID-19 vaccine in targeted regions and states to control the COVID-19 disease. The first batch of one million Sinovac brand vaccines donated by the People’s Republic of China for vaccination arrived at Yangon International Airport on 13 October. Also, the second batch of one million Sinovac doses and 1,001,600 needles arrived at Yangon International Airport on 14 October (yesterday) and was received by a team led by the Head of Yangon Region Public Health Department.

These vaccines will be delivered to respective states and regions with the help of the Tatmadaw (Air) and Myanmar Airways, via a cold chain system, officials said. As of 14 October, a total of 18 million doses of COVID vaccines were purchased by the Ministry of Health including 2 million Covishield vaccines, 14 million Sinopharm vaccines and 2 million Sinovac vaccines have already arrived. Over 8 million doses of COVID-19 vaccine donated by India, Russia and the People’s Republic of China have also been received.

To control COVID-19 disease, the COVID-19 vaccine is being given in targeted groups in respective regions and states. As of 13 October, a total of 10,751,760 people have been vaccinated, and 4,266,484 have been fully vaccinated twice and 6,485,274 have been vaccinated for the first time. Therefore, to date, a total of 15,018,246 vaccines of COVID-19 have been given in Myanmar. “People should not miss a dose of the COVID-19 vaccine given to them. Those who have received their first dose of vaccines are also encouraged to actively participate in second dose vaccination activities by visiting the nearest vaccination group in time,” officials said.

Source: The Global New Light of Myanmar