Posts in category: ECONOMY

The Amata Holding Public Co., Ltd (AMATA) is listed on the Yangon Stock Exchange (YSX) on 3 June 2021 at the base price of K4,500 per unit. Its share trading is made on the same day, according to the recent notice released by YSX. The upper limit price is set at K5,500, while the lower is at K3,500. If investors place a market order, it can be matched between the upper and lower limit price based on the balance of supply and demand. After scrutinizing submitted application documents and a deliberate listing examination, YSX approved the Amata Holding Public Co., Ltd. (AMATA) to be listed on YSX under Section 41 (c) of the Securities Exchange Law and Section 7 and 8 of the Securities Listing Business Regulations, on 28 December 2020. Earlier, it was earlier scheduled to debut on the exchange on 12 March.

YSX has postponed the scheduled date of listing of the Amata Holding Public Co., Ltd. (AMATA for a certain period, according to the YSX notification dated 26 February 2021. AMATA is the very first hotel and tourism business to be listed in the equity market. The base price of AMATA will be announced on the YSX website one working day prior to the listing date. On 18 July 2018, the company issued a prospectus in which 596 investors held 497,598 shares at an offering price of K5,000 per unit. AMATA would be the seventh public company to list on the exchange. AMATA is a public holding company as per the company’s profile. It operates resorts in Ngapali Beach, Inlay Lake and Bagan, and a hot air ballooning business with 15 balloons in six cities.

AMATA owns 99.99% share from United International Group Co., Ltd and 51% shares from Myanmar Ballooning Co., Ltd. At present, shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd (TMH) and the Ever Flow River Group Public Co. Ltd (EFR) are traded on the exchange. On 2 June 2021, the share prices of FMI were closed at K9,000 per unit, MTSH at K3,500, MCB at K7,800, FPB at K19,000, TMH at K2,750 and EFR at K2,950, respectively. Usually, over K60 million worth of shares were traded on the exchange every day. The COVID-19 impacts cooled down the market.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) reportedly sold US$24 million at an auction rate in May, the CBM data showed.
The CBM’s move aims at governing the market volatility, the CBM stated. The CBM sold $6 million each on 12 and 13 May and $3 million each on 17, 18, 20 and 28 May, respectively. The bullish hard currency gained in the local forex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end. In a bid to control the sharp daily gains of the US dollar, the CBM reportedly sold about 6.8 million dollars on 3 February 2021, 6 million dollars each on 22 and 27 April and $24 million in May in the auction market.

Consequently, the exchange rate dipped to K1,580 in May-end. The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. 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.

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

The Myanmar Banks Association has announced that bank loans should be repaid on time and the payment can be made by cash or debit. The Myanmar Banks Association has launched banking services, including the ability to open an account with a minimum deposit of 10,000 kyats to 100,000 kyats in a new deposit account. The current account can be opened by depositing at least 10,000 kyats to 100,000 kyats in cash in the current account. Banks are not compatible with each other and interest rates may vary from bank to bank.

Payment can be made in cash. Withdrawals can be made using cashier’s check (Cash Transfer, CBM Net, Digital Payment, Any Channel). Call Deposit can be used to open an account with a minimum deposit of 10,000 kyats to 100,000 kyats in cash and interest rates may vary from bank to bank. Payment can be made in cash. Withdrawals can be made by check (cash transfer, CBM Net, Digital Payment, Any Channel).

In repaying the loan principal/interest, the loan principal/interest borrowed by the banks is paid in cash or in kind. It also encourages banks to repay their loans before maturity in order to facilitate the smooth repayment of deposits currently deposited with banks by changing the list or accounting method. In addition, a statement from Myanmar Banks Association also state about old deposit accounts, Sale of Payment Order (PO), issuance of Bank Grarantee (BG), Money transfer and TT/ LC services.

Source: Daily Eleven

According to the original estimate, the Union tax collection in the 2020-2021 fiscal year is expected to reach over 8615.777 billion kyats. The revenue collection situation of the Union is 1691429.766 million kyats in the 2011-2012 financial year, 3373296.761 million kyats in the 2012-2013 financial year; 4458776.351 million in the 2013-2014 financial year, 6517979.368 million in the 2014-2015 financial year; 6314733.657 million in the 2015-2016 financial year, In the 2016-2017 financial year, 7122430.228 million; 7423724.984 million in the 2017-2018 financial year, In the six-month period from April to September 2018, 3424,206.832 million kyats; In the 2018-2019 financial year, it received 8360303.568 million kyats, in the fiscal year 2019-2020, it was 8475667.746 million kyats and the fiscal year 2020-2021, it is planned to receive 86157777.229 million kyats.

According to the Internal Revenue Department, the annual income tax revenue was over 3,379 billion kyats in the 2019-2020 fiscal year, which was 687 billion kyats more than the previous year published by Information Unit. According to the annual special excise tax revenue, 1266912.42 million kyats from October to September of the fiscal year 2019-2020,1429120.75 million kyats from October to September of 2018-2019 fiscal year, 604924.24 million from April to September 2018; In the fiscal year 2017-2018, from April to March, 1240214.11 million kyats. From April to March of the 2016-2017 fiscal year, it received 994235.73 million kyats. According to the annual commercial tax revenue, 1877851.77 million kyats from April to March of the 2016-2017 fiscal year. 

From April to March of the 2017-2018 fiscal year, 1976999.13 million kyats; from April to September 2018, 920618.14 million kyats; 2256770.20 million kyats from October to September of 2018-2019 fiscal year; From October to September of the 2019-2020 fiscal year, Ks 2,110,187.21 million was received, according to the Internal Revenue Department published by Information Unit. In the 2019-2020 fiscal year (October 2019 to September 2020), a total of 7969.397 billion kyats is expected to be collected from various taxes. 2227.964 billion kyats from commercial tax; 1348.541 billion kyats from special excise tax; 85.407 billion from office tax and stamp duty. It is expected to receive up to 165 billion kyats from the Aung Bar Lay Thein prize.

Myanmar’s annual tax revenue was Ks 1683 billion in the 2011-2012 fiscal year. 3373 billion kyats in the 2012-2013 financial year; 4459 billion in the 2013-2014 financial year; 6518 billion kyats in the 2014-2015 financial year; 6315 billion kyats in the 2015-2016 financial year; 7122 billion in the 2016-2017 financial year; 7423 billion kyats for the fiscal year 2017-2018; Between April and September 2018, Ks. 2792 billion; In the 2018-2019 financial year, 7791 billion kyats was collected. The ratio of tax revenue to GDP was 3.63% in the 2011-2012 fiscal year. 6.5% in the 2012-2013 financial year; 7.69% in the 2013-2014 financial year; 9.84% in the 2014-2015 financial year; 8.61% in the 2015-2016 financial year; 8.93% in the 2016-2017 financial year; In the 2017-2018 financial year, 8.21%; Between April and September 2018, 8.49 percent; 7.3% in 2018-2019 fiscal year and 6.61% in the 2019-2020 fiscal year.

Source: Daily Eleven

The domestic gold bar price hit only over K1.57 million on 27 May despite the rising of the global gold price, according to Yangon Region Gold Entrepreneurs Association (YGEA). The international gold price was around US$1,898 per ounce on 27 May. Although the international gold price stood at only $1834 per ounce on 12 May, the price of precious yellow metal hit the all-time highest of K1,709,000 per tical (0.578 ounce, or 0.016 kilogramme) in history. As a result, the domestic gold price is not rising like international gold. Yangon Region Gold Entrepreneurs Association is taking the necessary measures to stabilize the gold price as per the instructions of the special investigation team, according to an announcement of YGEA issued on 17 May.

At present, the association has closed the gold trading to be able to steady the gold price and urged the members to run a cash-only for the gold transaction. Moreover, illegal importers and those who practise overtrading with negligence will face serious legal action. In January 2021, domestic gold fetched the highest price of K1,336,000 per tical on 6 January. It reached the lowest price of K1,316,000 per tical on 28 January. It got the lowest level of K1,340,000 (2 February) and the highest level of K1,410,000 (3 February). In March, the rate fluctuated between the most elevated of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March). In April, the rate touched the lowest K1,389,000 (1 April) and the highest level of K1,455,000 (30 April), the gold traders said.

The local gold price 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 K1,312,000 (16 November) and the lowest of K1,278,000 (28 November). According to the gold traders, in December, the pure yellow metal priced moved in the range of K1,275,000 (1 December) and K1,333,000 (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 K1,200,000 (7 August-4 September), and then reaching an all-time record high of K1,300,000 on 5 September in 2019.

Source: The Global New Light of Myanmar

Mandalay Region Agricultural Development Bank will initially disburse over K77 billion of agricultural loans to farmers from 23 townships in the Mandalay region in order for them to grow monsoon crops starting from 26 May, according to Mandalay Region Agricultural Development Bank (MRADB). The Mandalay Bank Branch has targeted to provide K77.109 billion loans for the cultivation of monsoon crops. The agrarian loans will be disbursed to farmers in 23 townships of the Mandalay region to cultivate monsoon paddy and other crops.

ADB bank is issuing the loans for the benefit of the farmers. The bank will provide the monsoon loans for 2021 to the farmers who have already paid off the principal and interest for the 2020 monsoon loan. Those who have not paid back in full will have difficulty getting 2021 loans. The bank has already collected 18.32 per cent of the loan disbursed last year. The farmers who have not paid off their last year’s debts will not be qualified for a new loan this year. The bank will collect a five per cent interest rate annually.

They are providing the loans with a low-interest rate, said manager of the Myanmar Agricultural Development Bank in the Mandalay region. K150,000 per acre for paddy and K100,000 per acre for other monsoon crops such as peanut, green gram, sesame, bamboo, chickpea, black bean, soya-bean, corn and other crops will be granted as monsoon agricultural loans. The 23 townships that will be provided with agriculture loans for 2021 monsoon crops are Amarapura, Patheingyi, PyinOoLwin, Madaya, Singu, Thabeikkyin, Kyaukse, Singaing, TadaU, Myittha, Meiktila, Wundwin, Mahlaing, Thazi, Myingyan, Taungtha, Natogyi, Ngazun, Yamethin, Pyawbwe, NyaungU and Kyaukpadaung townships.

Source: The Global New Light of Myanmar

1. The Myanmar Agricultural Development Bank (MADB) of the Ministry of Planning and Finance has provided annual agrarian loans to farmers throughout Myanmar since its inception in 1953. Farmers have also worked with the bank for many years to develop Myanmar’s agricultural sector by getting a new loan after repaying the old one on time after harvest.
2. The government has extended the deadline for the 2020 monsoon loan to make it easier for farmers who have financial difficulties in repaying the loan due to the COVID-19 pandemic. Instead of 15 April 2021, the deadline has been extended to 31 July 2021.
3. At present, the Myanmar Agricultural Development Bank in each region/state, district and township will provide 2021 monsoon agrarian loans to farmers from 26-5-2021 to 30-9-2021. It is announced for farmers to contact respective branches of the Myanmar Agricultural Development Bank in townships and districts concerned as soonas possible in order to pay off old loans and get new loans for the 2021 monsoon season.
   Myanmar Agricultural Development Bank

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) reportedly sold US$18 million at an auction rate in May, the CBM data showed.
The CBM’s move aims to govern the market volatility and support the state’s foreign exchange reserves, the CBM stated. The bullish hard currency gained in the local forex market, reaching the peak of above K1,7000 on 12 May. In a bid to control the sharp daily gains of the US dollar, the Central Bank of Myanmar reportedly sold about 6.8 million dollars on 3 February 2021, 6 million dollars each on 22 and 27 April and $18 million in May in the auction market.

At FX auction market, the CBM purchased $39.5 mln in January 2020, $31.5 mln in February, $21 mln in March, $16.7 mln in May, $39.1 mln in June, $31.1 mln in July, $35.6 mln in August, $44.2 mln in September, $43 mln in October, $100,000 in November and $7.8 million in December respectively. It sold $2.7 million in April and $3 million in December 2020. Next, the CBM purchased $1.8 million in January 2021. The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The instability in the exchange rate posed difficulties to those stakeholders engaged in the agriculture and livestock supply chains including farmers, traders and exporters.

That is why the stable exchange rate is vital of importance for the businesses. 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. 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

On May 17, 2021, the Central Bank of Myanmar sold $ 3 million in a foreign exchange auction, with the average exchange rate 1,665 kyats, according to the Central Bank of Myanmar. Monthly sales from January to December 2020 were $ 39.5 million in January 2020; $ 31.5 million in February; $ 21 million in March; $ 16.7 million in May; 39.1 million in June; $ 31.1 million in July; $ 35.6 million in August; $ 44.2 million in September; $ 43 million in October; $ 100,000 in November; It bought $ 7.8 million in December and $ 2.7 million in April 2020. 

It was resold in December 2020 for $ 3 million. It bought $ 1.8 million in January 2021 and sold $ 6.8 million in February. Short-term rise in foreign exchange rates; The central bank is launching a foreign exchange auction to reduce inflation and increase foreign reserves. The Central Bank of the Republic of the Union of Myanmar A regulatory-based foreign exchange auction is underway to reduce inflation and implement the state’s two foreign reserves. 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, the percentage devaluation of the kyat exceeds the stipulated conditions (opening a competitive auction for sale in US dollars, the highest exchange rate announced by the central bank at the central bank auction and the lowest exchange rate announced by the central bank at the auction). As mentioned, the Central Bank of Myanmar is opening a foreign exchange auction in the short term. This is to reduce large losses and increase foreign reserves. The Central Bank of Myanmar (CBM) is conducting a foreign exchange auction to keep the exchange rate at a fixed rate. The Central Bank has stated that it does not intend to increase or depreciate the kyat.

Source: Daily Eleven