USD against MMK hits around K1,800

by ECONOMY

The exchange rate stood at its highest point of K1,800 per US dollar in the foreign exchange market. Although the dollar exchange rate hit only K1,708 per dollar on 3 September as stated by the Central Bank of Myanmar (CBM), the outside exchange rate is set at K1,800 per dollar. Thus, the local forex market rate is K100 higher than the rate set by the CBM. The CBM sold US$ 28 million in seven times at its auction rate in August to stabilize the US dollar exchange rate. In July, the central bank reportedly sold $39 million at an auction rate. Besides, the bank sold $12 million at an auction rate as well.

The CBM is conducting an auction for foreign exchange to reduce the fluctuation of foreign exchange rates in a short-term period. The dollar exchange rate against Myanmar Kyat stood at around K1,330 per dollar at the end-January. Then, the rate jumped to around K1,800 per dollar on 4 September with a rise of over K400 in over seven months. In the first eight months of 2021, the highest and lowest exchange rate is currently fixed around K1,327-1,345 in January, K1,335-1,465 in February, K1,420-1,550 in March, K1,550-1,610 in April, K1,585-1,730 in May, K1,595- 1,620 in June, K1,626-1,670 in July and K1660-1682 in August.

In 2020, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385- 1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar

Container ship sailing with sun in background

Maritime trade tops $17.3 bln as of 20 Aug

by TRADING

The value of Myanmar’s maritime trade over the ten months (1 October-20 August) of the current financial year 2020- 2021 sank to US$17.3 billion, which is a 25 per cent drop compared with the same corresponding period of last year. The figures plunged from $23.37 billion during the yearago period, according to the Ministry of Commerce. While maritime exports were valued at $7.2 billion, imports had registered at $10 billion. Compared to the same period in the 2019-2020 financial year, imports fell by $4 billion, while exports decreased to $2 billion. The maritime trade fell by $6.05 billion as of 20 August as against last year.

Meanwhile, the value of land border trade this FY was estimated at $8.79 billion, a decrease of $933 million as against a year-ago period. Myanmar witnessed a slump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and the political changes. For maritime trade, disruption in the logistics sector and COVID-19 impact on global shipping scaled down Myanmar’s maritime trading somehow. The country’s total external trade over the past ten months touched a low of $26.1 billion, which plunged from $33 billion recorded in a year-ago period.

Myanmar’s sea trade generated $26 billion out of an overall trade value of $36 billion in the last FY2019-2020, the Ministry of Commerce’s statistics indicated. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products, while it imports capital goods, consumer goods, and raw industrial materials. The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade and includes the Yangon inner terminals and the outer Thilawa Port. Yangon inner terminal and the outer Thilawa Port received over 152 larger ships of above 30,000 DWT (Deadweight tonnage) in the past five months (February-June) this year after the draft limit is extended up to 10 metres with the new navigation channel accessing to inner Yangon River. Myanma Port Authority is ensuring smooth freight flow with non-stop operation during the public holidays.

Source: The Global New Light of Myanmar

Republic of the Union of Myanmar Central Bank of Myanmar

by ECONOMY

Notification No 33/2021
12th Waning of Wagaung 1383 ME
3 September 2021

  1. The Central Bank of Myanmar exercises the authority in sub-section (a) of Section 49 of the Foreign Exchange Management Law to issue this notification.
  2. According to Section 38-b, Section 42-a of the Foreign Exchange Management Law and paragraph 35 of the Foreign Exchange Management Regulation, exporters shall not fail to deposit all their export incomes in foreign exchange, during the stipulated period, in their bank accounts in the State.
  3. Exporters must sell their remaining export incomes in foreign exchange of their bank accounts to the authorized bank-AD licences within four months of the transfers without fail.
  4. This notification shall come into effect from the date of issue.

Than Nyein
Governor

Source: The Global New Light of Myanmar

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Number of companies registered on MyCO exceeds 4,230 in eight months: DICA

by INVESTMENT

The number of companies registered on the online registry system, MyCO, reached over 4,230 in the past eight months 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, in keeping with the Myanmar Companies Law 2017. During the January-August period, the number of registered companies on MyCO was 1,373 in January, 188 in February, 163 in March, 254 in April, 686 in May, 775 in June, 433 in July and 360 in August, the DICA’s statistics showed.

At present, 100 per cent of the applicants are using the online registration platform, the DICA stated. Last year, the figures of registered companies stood at 1,415 in January, 1,298 in February and 1,015 in March, only 348 companies in April, 798 in May, 1,314 in June, 1,650 in July, 1,551 in August, 1,378 in September, 1,693in October, 1,099 in November and 1,521 in December, as per statistics of the DICA. In 2019, the figure stood at 1,733 in January 2019, 1,419 in February, 1,108 in March, and over 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August and 1,181 in September. The figures reached a fresh new peak of 2,059 in October 2019.

Then, 1,615 new companies in November and 1,772 in December were recorded, data of the DICA showed. When the online registry was launched in August 2018, 1,816 new companies registered on MyCO. The figure stood at 2,218 in September 2018, 1,671 in October, 1,431 in November and 1,364 in December 2018. 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), according to 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, as per Section 53 (A-1) of the Myanmar Companies Law 2017. As per DICA’s report, more than 16,000 companies were suspended as of September-end 2020 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 late filing 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. 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

The global dollar price index is around 92 points and the exchange rate is around 1,703 kyats per dollar

by ECONOMY

The global dollar price index was around 92 points on September 2, and on September 2, the exchange rate in the local market was around 1,703 kyats per dollar, according to foreign currency traders. In the domestic market, the exchange rate has risen sharply since June 2018, breaking the record of 1,438 kyats per dollar on December 16, 2016 to 1,440 kyats on July 30, 2018, to a record high of 1,670 kyats on August 16 and 1,650 kyats on September 20.

Then, on January 1, 2019, it was 1540 kyats. On February 28, it dropped to 1,503 kyat. It was around 1514 kyats on August 26 and rose to 1565 kyats on September 6. It has fallen below 1,400 kyats since March 5, 2020. In July 1367 kyats; In August 1342 kyats; In September 1324 kyats; In October, it dropped to 1297 kyats.The lowest and highest monthly foreign exchange rates in the domestic market were 1320-1445 kyats in March 2020; In April 1395-1440 kyats; in May 1406-1426 kyats.

In June, 1412-1385 kyats; In July 1367-1413 kyats; In August 1342-1392 kyats; 1324-1362 kyats in September; 1297-1340 kyats in October; 1306-1327 kyats in November; 1326-1405 kyats in December; In January 2021, it was 1333-1355 kyats. In February, it was 1340-1475 kyats. On September 2, 2021, the exchange rates of other foreign currencies in the domestic market were 1950 kyats to 1950 kyats. S $ 1,260; Malaysian ringgit 387 kyats Thai baht 53 kyats. Short-term rise in foreign exchange rates; The Central Bank of Myanmar (CBM) is launching a foreign exchange auction to reduce inflation and increase foreign reserves.

Source: The Global New Light of Myanmar

Domestic gold price gains up to over K1.7 mln

by ECONOMY

The price of domestic gold bar gained up to 1,708,000 kyats per tical (roughly 16.33 grammes), according to Yangon Gold Entrepreneurs Association (YGEA). The price of domestic gold is high right now due to a shortage of raw precious metals and the rising global gold prices. Additionally, Kyat is depreciating in the local forex market, which is another cause of price gain in the domestic gold market. Currently, the global gold prices stood at US$1,814 per ounce, while a US dollar exchange rate scaled up to the peak of around K1,800 in the local foreign market. On 12 May, domestic gold hit an all-time high of K1,709,000 per tical in history.

Thus, YGEA urges its members to regulate trade to be able to stabilize the domestic gold prices. Besides, the shops are urged to sell only small pieces of gold bar. The association is also monitoring to stop accepting orders without raw gold material and to stop distance trading. In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February.

In March, the rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March). The price has registered the highest of K1,455,000 (30 April) and the lowest of K1,389,000 (1 April). The price reached an all-time highest of K1,709,000 (12 May) and the lowest of K1,447,000 in May. The price moved in the maximum of K1,575,500 (11 June) and the minimum of K1,543,000 (19 June). The rate hit the lowest level of K 1,562,300 (26 July) and the highest level of K 1,587,000 (9 July). Last month, it fluctuated between K1,572,800 (3 August) and K1,698,000 (31 August), the gold traders said.

According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal priced moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019.

Source: The Global New Light of Myanmar

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The actual inflow of foreign investment into Myanmar in 2020 is just over $ 2.2 billion

by INVESTMENT

According to figures released by the Directorate of Investment and Company Administration (DICA), the actual inflow of foreign investment into Myanmar in 2020 was just over $ 2.2 billion. In the last fiscal year 2019-2020, Myanmar allowed more than $ 5.525 billion in foreign investment, and only $ 2.205 billion in actual inflow into Myanmar by 2020. During the 2018-2019 fiscal year, Myanmar allowed more than $ 4.5 billion in foreign investment.

According to the Directorate of Investment and Company Administration (DICA), the actual inflow of foreign investment into Myanmar during the period was $ 2.766 billion. In the investment sector, the MIC has already given permission, but foreign investors have not been able to enter immediately and have to conduct a preliminary study on their business capabilities. There is a business approve. What kind of business is allowed by the business owner? How much to invest? You have to submit it first. Does the state have to allow the proposed business under the Investment Law? Should the Union allow it? It was approved step by step.

Once authorized, the employer does not enter immediately. He also studied whether it is possible in the country first. When all goes well, the business will start. Some jobs take years. For example, the investment allowed this year is not immediate. They may start working next year or next year. This year’s entry also includes permits from some companies from previous years. In some years, it is more than allowed, said an official from the Myanmar Investment Commission (MIC). If we look at the amount of foreign investment that has actually flowed into Myanmar year by year, in 2014 it was almost $ 1.2 billion. In 2015, it was over $ 4.2 billion. In 2016, it was about $ 3.9 billion. In 2017, more than $ 4.8 billion; $ 1.8 billion in 2018; In 2019, it received more than $ 1.7 billion, according to DICA.

Source: Daily Eleven

Local_Agriculture_5

Myanmar Agro exports grow 25 per cent as of 20 Aug

by TRADING

Myanmar’s agricultural exports over the past ten months of the current financial year soared 25 per cent amid the closure of the major border post Muse triggered by the coronavirus impacts, indicated the Ministry of Commerce statistics. The agricultural exports rocketed to US$4.3 billion between 1 October and 20 August of the current financial year 2020- 2021, despite the downward trend in other export groups resulted from the tightened coronavirus containment measures in the border and increase in the container shipping cost. The figures reflect an increase of $877 million this FY. The agro exports topped $3.46 billion in the corresponding period of the 2019-2020FY, according to the trade figures released by the Ministry of Commerce.

The agricultural exports surged even though the main trade partner China shut down all the borders in the wake of the COVID-19 surge in Myanmar. The coronavirus pandemic impacted the foreign demand for other export groups: agricultural products, fishery, livestock, mineral, forest products, finished industrial goods and other goods. In the exports sector, the agriculture industry performed the best, accounting for 34 per cent of overall exports. The chief items of export in the agricultural sector are rice and broken rice, pulses and beans and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro products are also shipped to other countries.

Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. Sometimes, the export market remains uncertain due to unsteady global demand. The country requires specific export plans for each agro product, as they are currently exported to external markets based upon supply and demand. The G-to-G pact also ensures a strong market for the farmers. Contract farming systems, involvement of regional and state agriculture departments, exporters, traders, and some grower groups, are required in order to meet production targets, the Agriculture Department stated. The Commerce Ministry is working to help farmers deal with challenges such as high input costs, procurement of pedigree seeds, high cultivation costs, and erratic weather conditions.

Source: The Global New Light of Myanmar

Covid-19 Delta Variant concept with graphics

Public Notification on discovery of Coronavirus (COVID-19) Delta variant

by COVID

The Ministry of Health is continuously conducting the COVID-19 surveillance procedures, especially the surveillance of the COVID-19 variants, in collaboration with the Medical Research Unit of the Ministry of Defence. A laboratory test on 28 August 2021 revealed that 15 people had been diagnosed with the COVID-19 Delta variant (Variants of Concern), which need special care.

Of them, five were from Nay Pyi Taw, two from Yangon, two from Mandalay, and one each from Sittway, Toungoo, Lashio, Mawlamyine, Monywa and Kalay, respectively. According to the World Health Organization (WHO), the Delta variant was first discovered in India and is endemic in 163 countries, at present.

Delta variant is considered to have a higher risk of death due to their higher risk of infection and disease severity. In addition, it has also been shown to slightly reduce the effectiveness of some COVID-19 vaccines. Therefore, the people are urged to strictly adhere to the guidelines, orders and procedures issued by the Ministry of Health in order to prevent the spread of COVID-19 disease to their families and environment.

Ministry of Health

Source: The Global New Light of Myanmar

metro

METRO Wholesle Myanmar will be closed at the end of October due to operational difficulties

by INVESTMENT

METRO Wholesle Myanmar, a well-known company in Yangon, announced on September 1 via its social media site that it would be shutting down at the end of October due to operational difficulties.

The statement said it regretted that METRO Myanmar would cease operations at the end of October 2021. They have carefully considered what can be done under various circumstances. However, the current situation makes it very difficult to operate in accordance with the high standards set by METRO.

Customers who have trusted and worked with them over the years; Thanks to all our business partners and suppliers. They would also like to thank all the METRO staff and pledge to provide full guidance and support during the transition period. METRO Wholesle Myanmar entered and invested in Myanmar in 2017.

Source: Daily Eleven