Posts in category: ECONOMY

Sixteen mobile market trucks operated by 11 companies, in coordination with Myanmar Edible Oil Dealers’ Association, are back to business in 11 districts starting from 17 July in order to offer the palm oil at the subsidized rate to the consumers. The mobile market scheme will cover the remaining townships in the upcoming days. The market prices will be changed according to the reference rates on the weekly basis. Mobile market trucks offer palm oil at the cheaper rate of K4,750 per viss (a viss equals 1.6 kilogrammes) this week in Yangon Region.

Under the guidance of the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and the Myanmar Rice Federation, the affiliated associations including Myanmar Rice Traders Association, Myanmar Edible Oil Dealers’ Association and rice exporters are offering staple food at fairer price with the mobile trucks in the respective townships in Yangon Region. The reference wholesale price of palm oil in Yangon market for a week from 11 to 17 July is set at K4,650 per viss, according to the Supervisory Committee on edible oil import and distribution under the Ministry of Commerce. The committee has been closely observing the FOB prices in Malaysia and Indonesia including transportation cost, tariff and banking service and issuing the wholesale market reference rate for edible oil on a weekly basis.

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 the reasonable price to the consumers, maintain the 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 through Malaysia and Indonesia.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar released a list exempted from exchange regulations. The Foreign
Exchange Supervisory Committee held a meeting regarding Notification 12/2022 of the CBM issued in April. The list included the Woori Bank Representative Office and foreign accounts at the Myanma Foreign Trade Bank, Panjab National Bank, Yangon Representative Office, China National Oil Corporation (Myanmar Branch), Thilawa and Dawei SEZs management committee companies, Kyaukpyu SEZ Development Committee and Kyaukpyu SEZ Deep Seaport Company. The companies with ten per cent and above foreign investment, foreign direct investment and businesses in SEZs are also exempted from the exchange regulations.

Source: The Global New Light of Myanmar

Myanmar hosted the 7 th Mekong-Lancang Cooperation Foreign Ministers’ Meeting on the morning of 4 July 2022 at Aureum Palace Hotel in Bagan. The meeting was co-chaired by U Wunna Maung Lwin, Union
Minister for Foreign Affairs of the Republic of the Union of Myanmar and Mr Wang Yi, State Councilor and
Foreign Minister of the Peoples’ Republic of China. Mr Prak Sokhonn, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of Cambodia, Mr Saleumxay Kommasith, Deputy Prime Minister and Minister of Foreign Affairs of Lao PDR, Mr. Don Pramudwinai, Deputy Prime Minister and Minister of Foreign Affairs of Thailand and Mr Bui Thanh Son, Foreign Minister of Viet Nam attended the meeting.

During the meeting, the Ministers reviewed the work done in the past and discussed the future direction of the cooperation. They also exchanged views on the ways and means to address the current challenges. At the meeting, Union Minister U Wunna Maung Lwin stated that collective efforts with solidarity under the Mekong-Lancang Cooperation framework would be the best means to address current and future challenges as per the theme of the meeting; “Solidarity for Peace and Prosperity”. He also mentioned having close cooperation for the prevention and control of infectious diseases including COVID-19 for regional health security and thanked China for the assistance rendered to Myanmar in the fight against COVID-19.

The Minister stressed prioritizing the cooperation for the economic revitalization and support of the “Global Development Initiative” of China as it effectively responds urgent needs of the Mekong-Lancang region. He highlighted the importance of regional peace and stability as a basis for sustainable development, and support the “Global Security Initiative” of China. The Union Minister pointed out the need to enhance cooperation in the area of non-traditional security including suppression of transnational crime, illicit drug production and trafficking, illegal weapon trafficking and anti-terrorism. He also supported the establishment of the Mekong-Lancang Disaster Management Cooperation Mechanism for the improvement of the disaster risk reduction capacity of six member states.

He also touched upon the other areas of cooperation such as water resources, agriculture, production capacity, power generation and renewable energy. In the meeting, Mr Wang Yi, State Councilor and Foreign Minister of the Peoples’ Republic of China discussed the future directionunder the Mekong-Lancang Cooperation which includes promoting strategic leadership for sustainable development, expanding agriculture cooperation, to promoting green development, to enhancing cooperation on digital innovation and strengthening people-to-people exchanges. The State Councilor also explained the plan for future cooperation under the MLC framework including the plans to enhance cooperation in agriculture, water resources, digital economy, space cooperation, human resources and public health.

The Foreign Ministers of Mekong countries also discussed the matters to be included in the future work of Mekong-Lancang Cooperation. The meeting issued the Joint Press Communique’ and four thematic statements in the areas of agriculture, disaster management, custom, and mutual learning among the peoples of the Mekong-Lancang region. After the meeting, all Foreign Ministers of Mekong-Lancang Cooperation attended the opening ceremony of the “Mekong-Lancang Cooperation National Coordination Unit Building” built at the premises of the Ministry of Foreign Affairs, Nay Pyi Taw. The two Co-chairs, Foreign Ministers of Myanmar and China, also made a Joint Press Conference on the outcomes of the meeting. Mekong-Lancang Cooperation was established in 2016 with an aim to assist regional efforts to achieve sustainable inclusive development and narrow development gaps in the region while promoting peace and prosperity. Cambodia, China, Laos, Myanmar, Thailand and Viet Nam are the members of the Mekong-Lancang Cooperation.

Source: The Global New Light of Myanmar

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

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

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

The price of domestic palm oil is rolling back again, according to the market data. After Indonesia’s ban on palm oil export is lifted, the price slid again in the global oil-producing countries. The reference rate in the Yangon market for a week from 23 to 29 May is set at K5,500 per viss (a viss equals 1.6 kilogrammes), according to the Supervisory Committee on edible oil import and distribution under the Ministry of Commerce. The rate fell from the reference rate of K6,025 per viss for a week ended 15 May.

The figures show an increase of over K500 per viss within a week. The committee 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 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 the price stability and prevent market manipulation.

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. On 9 May, to ensure the edible oil security, peanut and sesame exports were temporarily blocked, according to the Trade Department under the Ministry of Commerce. The domestic consumption of edible oil is estimated at one 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 through Malaysia and Indonesia. 

Source: The Global New Light of Myanmar

In a bid to end the black market and stabilize the volatile prices, transaction of gold bars has to be carried out in the office of Yangon Region Gold Entrepreneurs Association (YGEA), said U Myo Myint, chair of YGEA. “Some traders manipulate the price outside the office. YGEA offers a lower price than the retailers. The cross-border smugglers buy them from the association, causing the price to fluctuate. Some resell them with a gap of K20,000-K30,000 on the digital platform. Such transaction is not allowed to make. The gold transaction can be undertaken inside the YGEA’s office.

Licence for gold bar transaction is also required,” said U Myo Myint. Additionally, YGEA urged the members and gold traders to make gold transactions with immediate payment. Cross-border trade is not allowed without reporting to the association, according to its statement released on 17 May. The statement includes seeking a trade licence for gold shops, a licence for gold bar transactions and taking actions against those unauthorized dealers involved in online trade platforms. After that, gold shops engaged in gold bar transactions must make an inventory list of gold bar and gold trading reports.

Those individuals and gold shops will face legal actions under the existing law if they fail to follow that statement, according to YGEA. Moreover, YGEA also decided on 4 May to import gold from foreign countries in the coming rainy season not to fall short of raw metal supply. Additionally, gold traders and retailers are urged to make gold transactions by adding up to K5,000 to the price set by YGEA. In a bid to stabilize the gold market, gold transactions had better made according to the reference rate of the Central Bank of Myanmar (K1,850), according to the CBM’s statement released on 3 April. YGEA called for an urgent meeting on 8 April.

The meeting determined to carry out gold transactions depending on the CBM’s reference exchange rate. However, it has not come into force yet, said U Myo Myint, chair of YGEA. The US dollar stands at K2,000 in the unofficial black market. The domestic gold price is highly correlated with the global gold price, YGEA stated. 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. At present, pure gold is worth K2,040,000 per tical (0.578 ounce, or 0.016 kilogramme) in the domestic market, while the global gold price stands at US$1,822 per ounce. 

Source: The Global New Light of Myanmar

The Internal Revenue Department issued to submit income tax return, annual salary statement and annual trade tax declarations. Year of Revenue, Year of Sales / Revenue The year of sales and revenue (accounting period) is from October 1, 2021 to March 31, 2022. Offices that will receive the declaration must submit it to the tax assessment office of the current taxpayer. If the company is not yet a taxpayer, the application must be submitted to the Central Tax Service Office for registration and tax assessment office, and the declaration must be submitted to the tax office designated by the Central Office for Taxation Services. 

If it is an individual who is not yet a taxpayer, it must be submitted to the relevant Township Revenue Office. If the submission is made in person, it will be considered as submission by the Department on the date of receipt of the receipt. In case of sending by post, it will be considered as delivery on the date stamped. In case of electronic submission, the Department will consider the submission on the date of receipt of the electronic form. When filling out the declaration, you must use the relevant forms prescribed by the Internal Revenue Department, and the tax declaration forms can be obtained from the relevant tax offices and the department’s website  at www.ird.gov.mm. The taxpayer is responsible for the accuracy and completeness of the tax declarations, so it is necessary to complete the prescribed declaration forms. 

The declaration form must be signed by the taxpayer himself, and if the tax declaration or part of the tax declaration is amended for a fee, the person making the amendment must also co-sign the declaration. The declaration must be submitted by June 30, 2022 at the latest. Failure to submit tax returns on time will result in a fine of one of the following two fines: (A) one percent of the amount of tax to be paid for each month or part of the month which continues to fail to submit the declaration from the date stipulated to be submitted by the Director-General in addition to five percent of the tax payable; (B) One hundred thousand kyats. If for some reason it is difficult to submit the declaration on time, you can apply to the relevant tax office in advance to extend the tax filing deadline.

Source: Daily Eleven