Posts in category: ECONOMY

According to the domestic gold market, the gold market price in Myanmar dropped over K30,000 these days. Although the pure gold fetched the highest price of over K1,4000,000 per tical on 17 February, it has dropped to K1,366,000 per tical on 26 February. Recent days saw the gold price unstable in the domestic market. That is the reason why the Yangon gold market halted on 5 February. But, the market was reopened on 10 February. Consequently, Yangon Region Gold Entrepreneurs Association called an emergency meeting on 4 February before the gold market started.

Then, the association made four decisions. They are to use the cash down payment system and encourage people trading with fear and trading with restraint. Similarly, the international gold price is also on the decline. The gold price was fixed at around US$1,788 per ounce on 17 February and $1,770 on 26 February 2021. In January 2021, the 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. 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). In December, the pure yellow metal priced moved in the range of K1,275,000 (1 December) and K1,333,000 (28 December). With the 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 K1,200,000 (7 August-4 September), and then reaching a fresh peak of K1,300,000 on 5 September, according to the gold traders.

Source: The Global New Light of Myanmar

The project will provide loans of up to 5 million kyats per annum to small grocery stores affected by COVID-19 at an interest rate of 2% per annum according to the Ministry of Planning, Finance and Industry published by the Financial Supervision Department. Nay Pyi Taw Council, which was affected by COVID-19. Low interest loans (one year loan term) to small grocery stores in the region or state with a maximum interest rate of 2% per annum up to 5 million kyats per project. The Ministry of Finance and Industry will provide loans through microfinance institutions.

Therefore, grocery stores that want to get a loan should apply to Hana Microfinance Limited in the states and regions, Microfinance Nanster International Co., Ltd, Alliance for Microfinance in Myanmar, Stapana Limited, Alliedon Microfinance Company Limited; Pact (Global micro Finance Fund), Myat Kyun Thar Microfinance Company Limited; LOLC Myanmar Microfinance (S), Dawei Development Public Company Limited; Aung Pyae Phyo Kyaw Company Limited, Blue Lion Microfinance (Myanmar) Co., Ltd,  Sanda Phone Pyae Microfinance, Inocular Petrol Microfinance Co., Ltd, Khant Thu Walar Microfinance Co., Ltd.

People can get a loan by contacting microfinance institutions such as ASA Microfinance (Myanmar) Ltd. The Working Committee on the Economic Impact of COVID-19 has set up the COVID-19 Fund to provide much-needed financial assistance to businesses hotels and tourism; small Loans to small and medium enterprises have been issued affected by COVID-19 since April 9, 2020. The effects of COVID-19 were covered in accordance with CERP. 303,017.236 million kyats for the treatment of COVID-19 disease; 1508370.011 million for support to households and national disaster fund; 399,000 million kyats for loans to businesses; 728,515.254 million kyats for CERP activities; 200,500 million kyats for the opening of skills training, for a total of 2951664.128 million kyats.

Source: Daily Eleven

1. Political Objectives
   (a) Building of a Federal Democratic Union by fully and lawfully exercising a
   genuine disciplined multiparty democratic system;
   (b) Special consideration of the Nationwide Ceasefire Agreement (NCA) to
   implement eternal peace in the whole country;
   (c) Practising the active, independent and non-aligned foreign policy and upholding the mutual co-existence principle.
2. Economic Objectives
   (a) Development of agricultural and livestock production as the base employing
   modernized methods and all-round development of other sectors of the economy
   as well;
   (b) To shape a stable market-oriented economic system by inviting foreign direct
   investments (FDIs) and developing the economy of the entire national peoples;
   (c) Creation of employment opportunities by encouraging domestic economic
   enterprises to produce State products.
3. Social Objectives
   (a) Uplift of dynamism of Union spirit as genuine patriotic spirit;
   (b) Preservation and safeguarding of cultural heritage and national characters
   by respecting the traditions and customs of all ethnic national peoples;
   (c) Uplift of health, fitness and education standards of the entire nation.

Source: The Global New Light of Myanmar

Chairman of the State Administration Council and Commander-in-Chief of Defence Services Senior General Min Aung Hlaing delivered a speech at the 1/2021 meeting of the Economic Affairs Committee yesterday. At the meeting, Senior General Min Aung Hlaing discussed the importance of the national economy as a driving force for the development of the country, the works of the economic affairs committee for this sector, collaborative efforts in the works, and promotion of the production and export sector to reduce trade deficits shown the figures of Ministry of Commerce and Ministry of Planning, Finance and Industry.

He also held talks on sufficient human resources for the workforces, natural resources in the country with over 54 million population and conservation works for future generations, production of import-substituted items, more electricity generation to improve production sector, employment opportunities for the citizens who completed basic and higher educations, assistance for the employers and employees, guarantees and incentives for investors and collection of tax revenue from more taxpayers.

The Chairman of State Administration Council also instructed providing assistance to factories and industries, adopting policies by the relevant ministries for the better quality of products, the participation of nationals in the economic sector, the proper intention of the Economic Affairs Committee in making approvals for investments. Union Minister U Win Shein, the secretary of the Economic Affairs Committee, reported on the formation of the committee and the discussions.

Union Ministers for the Ministry of Home Affairs, the Ministry of Planning, Finance and Industry, the Ministry of Agriculture, Livestock and Irrigation, the Ministry of Information, the Ministry of Natural Resources and Environmental Conservation, the Ministry of Electricity and Energy, the Ministry of Commerce, the Ministry of Construction, and the Ministry of Social Welfare, Relief and Resettlement discussed matters related to the approvals of ministries, registrations, issuing orders, the appointment of members for Securities and Exchange Commission of Myanmar, providing cash awards, and signing MoUs and agreements.

Union Minister U Aung Naing Oo also reported on the ongoing projects with foreign countries, MoUs and international assistance; Auditor-General of the Union Dr Kan Zaw about the work plans and reform processes; Union Minister U Khin Maung Yi about the compilation of copper and gems and organizing gems emporium. In his concluding remark, the Senior General discussed requirements for economic recovery from the impacts of COVID-19, proper time management, making appropriate reports without delay, collaboration among relevant departments and ministries through firm policies.

Source: The Global New Light of Myanmar

According tot the Central Bank of Myanmar, the US dollar value against Kyat keeps appreciating in the domestic forex market. The dollar exchange rate stood at K1,335 in January-end. The rate has reached above K1,400 starting from 4 February 2021. With the dollar value strengthening in the local forex market, a dollar was valued at K1,447 on 23 February. The exchange rate rose by K100 in recent days. Consequently, the Central Bank of Myanmar sold 6,8 million dollars at an auction rate on 3 February to control the dollar exchange rate rise.

It is usual for the CBM to regulate the dollar volatility by selling or purchasing dollar at an auction rate. Similarly, the precious pure gold metal price stood at only K1,320,500 per tical (0.578 ounces, or 0.016 kilograms) in the domestic market during January-end. It then reached a new peak of K1,410,000 on 3 February. Yangon Region Gold Entrepreneurs Association released a statement on 4 February that the association urged people and traders not to trust in rumors, control reckless gold trading over concerns, and use cash down payment system.

Last month, the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327. In 2020, the exchange rate moved in the range of K1,465-K1,493 in January, K1,436-K1,465 in February, K1,320-K1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,440 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

By the end of December 2020, according to the Ministry of Natural Resources and Environmental Conservation, 1,190 large, medium and small blocks have been approved, including up to 320 blocks in Mandalay Region. There are 143 large blocks in each state and region, 173 medium blocks; 686 small blocks; there are 123 test blocks and 65 test achieved blocks, for a total of 1,190. Of these, 112 plots are in Kachin State; 18 plots in Kayah State; 45 plots in Kayin State; Four plots in Chin State; 214 plots in Sagaing Region; 86 plots in Tanintharyi Region; Three plots in Nay Pyi Taw; Seven plots in Bago Region; 51 plots in Magway Region; 320 in Mandalay Region; 17 plots in Mon State; One plot in Rakhine State; 136 plots in Shan State (South); 92 plots in Shan State (North); A total of 1,190 permits have been issued in Shan State (East) and 80 in Ayeyarwady Region.

In the four months from October to January of the 2020-2021 fiscal year, more than 144 tonnes of ore was extracted from the lead and black coal blocks in each state and region, with Kayah State producing the most with more than 100 tonnes, according to the Ministry of Natural Resources and Environmental Conservation. In October 2019, 18.289 tons of lead and black lead production in Kayah State were produced by state and region. 20.3200 tons in November; 21.33370 tonnes in December; In January 2020, it was 23.3690 tons. 21.337 tonnes in February, 18.2890 tonnes in March and 15.2410 tonnes in July. 20.3210 tons in August; In September, a total of 173.7440 tonnes were produced with 15.2410 tonnes. In the four months to October-January of the 2020-2021 fiscal year, 2,788.231 ounces of gold was mined from gold mining blocks in states and regions, with Sagaing Region producing the most at 1,436,694 ounces, according to the Ministry of Natural Resources and Environmental Conservation.

In the fiscal year 2019-2020, the production of gold ores in states and regions was 7834.16 ounces, and Sagaing Region produced 5734.26 ounces. Monthly production was 671.930 trillion ounces in October 2019. 150.860 trillion ounces in November; 585.140 trillion ounces in December; In January 2020, 470.610 trillion ounces; 506.640 trillion ounces in February; 1015.150 trillion ounces in March; 562.660 trillion ounces in April; 711.590 trillion ounces in May; 728.800 trillion ounces in June and 951.960 trillion ounces in July. 680.580 trillion ounces in August; In September, a total of 7,834.16 ounces were produced, starting with 798.24 trillion ounces. Initial Environmental Assessment (IEE) to ensure the environmental impact of gem mining; Union Minister for Natural Resources and Environmental Conservation said that an Environmental Management Plan (EMP) and an Environmental Impact Assessment (EIA) must be drawn up.                       

Source: Daily Eleven

The domestic gold market is facing price fluctuation in February. It was opened at K1,385,500 per tical (0.578 ounces, or 0.016 kilograms) on 16 February, the gold traders said. The yellow metal fetched the highest of K1,330,000 per tical in January 2021. And now, it reached a new peak of K1,410,000 per tical on 3 February 2021.

Consequently, Yangon gold market was suspended from governing the volatile gold price on 5 February. The market was reopened on 10 February at K1,373,000 per tical. The prices stood at K1,369,000 per tical on 11 February, K1,363,000 on 12 February, K1,368,000 on 13 February and K1,378,000 on 15 February. Following the emergency meeting held by Yangon Region Gold Entrepreneurs Association (YGEA) on 4 February, the association determined four factors on market volatility.

It urged not to trust in the rumour of withdrawing K5,000 and K10,000, to control the gold trading over concerns, to use cash down payment system and to follow the COVID-19 guidelines issued by the Ministry of Health and Sports. Despite the bull market in Myanmar, the international gold price was sliding. The gold price was pegged at around US$1,856 per ounce on 2 February and $1,823 on 16 February 2021. At present, some retail gold outlets are opened. However, the local market sees more sellers outnumbering the buyers. Additionally, Kyat is gaining against the US dollar in the local forex market at K1,440.

Source: The Global New Light of Myanmar

Licenses which are essential to set up a new business and permits would be reviewed according to the  Union Minister for Investment and Foreign Trade. License and some of the permits need to be vetted for the business sector according to the prescribed law. This is the type of license required by law. Some licenses whereas permits do not have much impact on the industry in the country, and there is a small risk. Some have completely unnecessary licenses and also permits. Therefore, licenses and permits will be reviewed and relaxed in accordance with the law. 

The Ministry of Investment and Foreign Trade would be responsible for coordination between ministries and organizations on investment matters. The Directorate of Investment and Company Administration has announced that it will facilitate investment activities. The Directorate of Investment and Company Administration (DICA) supports the Electronic Company Registration System (MyCO), which provides online company registration services to facilitate investments, as well as the online Visa Certification System for Foreign Residence and the Rescue Aircraft for Investors.

In addition, investment activities, domestic industries and raw materials and equipment needed to develop infrastructure such as electricity are also imported. The Myanmar Investment Commission (MIC) and the Myanmar Investment Commission (MIC) will take immediate action in accordance with the Myanmar Companies Law and the Myanmar Investment Law. The Directorate of Investment and Company Administration (Head Office) and the Directorate of Investment and Company Administration (Branch) in the states and regions have been informed by the Directorate of Investment and Company Administration.

Source: Daily Eleven

The Ministry of Investment and Foreign Economic Relations organized a coordination meeting on facilitation in businesses in accordance with the directives of State Administration Council yesterday. During the meeting, Union Minister U Aung Naing Oo briefed the coordination meeting and highlighted the main focus of business sector during the short-term governance of government. In the speech to public made by State Administration Council Chairman Senior General Min Aung Hlaing, it included revival of state economy, invitation of local and foreign investments, promotion of bilateral relation between alliance countries and those interested in Myanmar, following of agreements in line with the law, giving permits to businesses which have been approved in policy by the previous government as quickly as possible and development of farming sectors and export sectors. He also said Myanmar is also one of the countries that face economic impacts of COVID-19 and instructions are being made to revive the economy.

The unpractical ways and some things of existing law and procedures that can be obstacles in businesses will be revised and amended. He then discussed the facilitation of investment, delay reduction in departmental processes, capacity building of relevant departments, Streamlining and Simplifying Procedures, Maximizing Online Services, Assuring aftercare services, Reducing Regularoty Burden, providing information in a timely manner and Transparency Enhancement recognized as SMART Programme. He also said approval seeking step at the department will be relaxed in permitting the investment and quick response must be made by the relevant departments, if necessary. As the first procedure, negotiations between the ministries will be conducted to revise and relax the Standard Operating Procedures (SOP) regarding the investment. For the second procedure, the One Stop Service (OSS) Centre of Myanmar Investment Commission will be also revised like the OSS of Thilawa SEZ.

The senior officers of ministries assigned at OSS are needed to be fully authorized in accordance with the law and procedures to become effective and quality OSS. The third procedure is granting liceces and permits. Some of the licences and permits are needed to scrutinize for business fields and they are essential ones according to the laws and rules while some of the licenses and permits are at Low Risk. Similarly, some permits and licences are made although they are not required at all. Therefore, granting permits and licences will be conducted in line with the law. He then discussed the duties of ministry for investment sector to negotiate between ministries and firms and work pans to permit the delayed investment in accordance with the existing law and procedures. The meeting was attended by Deputy Minister of Investment and Foreign Economic Relations U Than Aung Kyaw and other officials of relevant ministries including Nay Pyi Taw Development Committee, YCDC, MCDC and Yangon Electricity Supply Corporation.

Source: The Global New Light of Myanmar

The price of black beans in the domestic market has risen by over K50,000 per tonne because of the appreciation of the US dollar exchange rate, according to the Yangon Region Chamber of Commerce and Industry (Bayintnaung commodity depot). Although the dollar exchange rate stood around K1,330 per dollar in the local currency market at the end of January, the rate jumped to K1,400 per dollar on 4 February. Therefore, the black bean’s price has amounted to K975,000 per tonne on 10 February, increasing from just K923,000 per tonne on 3 February, increasing over K50,000 per tonne. Similarly, the price of the pigeon pea is also about K810,000 per tonne.

The new harvested black bean is currently entering the domestic market. The traders demand it from India, Pakistan and Bangladesh. The first October of 2020 saw the Ministry of Commerce and Industry of India issue a notification to purchase 150,000 tonnes of black beans. The import deadline is March 2021. The licence will be equally granted for India’s companies.
At present, Myanmar has already exported nearly 100,000 tonnes of black beans. The remaining 50,000 tonnes of beans will continuously be exported, according to Myanmar Pulses, Beans and Sesame Seeds Merchants Association (MPBSSMA). The newly harvested black bean started to enter the market. The black bean plantations yielded around 400,000 tonnes annually, and the bean is mainly exported to India.

Similarly, about 50,000 to tonnes of pigeon peas are produced yearly and exported. Myanmar has also produced about 50,000 tonnes of pigeon peas annually and exported them chiefly to India. Since 2017, India has been setting import quota on beans, including black beans and pigeon peas. Myanmar has to export black beans and pigeon peas under a quota system and limit period. Consequently, according to market observers, there is no guarantee that we could get the prevailing market price next year. Following no assurance of black beans and pigeon peas in the market, the association suggested on the end-October that the local farmers grow the black-eyed beans more.

Source: The Global New Light of Myanmar