Posts in category: ECONOMY

Order No (9/2021)

6th Warning of Pyatho, 1382 ME

2 February 2021

The State Administration Council is formed with the following personnel in accordance with Article 419 of the State Constitution of the Republic of the Union of Myanmar.

(a) Senior General Min Aung Hlaing Chairman

(b) Vice-Senior General Soe Win Vice-Chairman

(c) General Mya Tun Oo Member

(d) Admiral Tin Aung San Member

(e) General Maung Maung Kyaw Member

(f) Lt-Gen Moe Myint Tun Member

(g) Phado Mahn Nyein Maung Member

(h) U Thein Nyunt Member

(i) U Khin Maung Swe Member

(j) Lt-Gen Aung Lin Dway Secretary

(K) Lt-Gen Ye Win Oo Joint-Secretary

Sd/

Min Aung Hlaing

Senior General

Commander-in-Chief of Defence Services

Source: The Global New Light of Myanmar

THE domestic gold price soared to K1,341,000 per tical (0.578 ounces, or 0.016 kilogrammes) on 2 February, the gold traders said. The international gold price was pegged at around US$1,855 per ounce on 2 February 2021, while a US dollar exchange rate was worth K1,335. Last 6 January 2021, the precious pure gold metal price rose to K1,336,000 per tical in the domestic market, and now, it peaked within one month. However, the local market sees more sellers outnumbering the buyers.

Earlier, the daily transaction of 50 visses (a viss equals 1.6 kg) of gold were seen in the market. Now, about five vises are traded per day, according tothe Yangon Region Gold Entrepreneurs Association. 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). 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 price 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 last year, 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 an alltime record high of K1,300,000 on 5 September 2019.

Source: The Global New Light of Myanmar

Republic of the Union of Myanmar
Office of the President
Order Number (1/2021)
1 February 2021

1. On 8 November 2020, the general election of the Republic of the Union of Myanmar was conducted under the authority of the Union Election Commission (hereinafter referred to as “UEC”). The “UEC” had not only failed to properly perform their duties but also neglected to ensure free, fair and transparent election.
2. The sovereignty of the power of a nation MUST be derived from the citizens, but the failure of the free and fair electoral process can cause the national sovereignty of the Republic of the Union of Myanmar and the power of people.
3. Refusal to address the caverns raised by several political parties, ethnic groups, and the Tatmadaw, and subsequently calling Pyi Thu Hluttaw (Lower House) and Amyotha Hluttaw (Upper House), as well as (Union Hluttaw) are violations of Article 417 of the Constitution of the Republic of the Union of Myanmar. According to Article 417 of the Constitution of the Republic of the Union of Myanmar, “the wrongful forcible means” of taking power shall cause of the loss of the sovereignty of Myanmar and the unity of the ethnic nationalities in Myanmar. There are many people, whom dissatisfied with the necessitous performances of the “UEC” have conducted peaceful protestation over the performance of the “UEC”.
4. As the Government and “UEC” both failed to address the causes, it is the Tatmadaw’s undeniable duty to exercise Article 417 of the “Supreme Law of the Myanmar” – the Constitution of the Republic of the Union of Myanmar to declare “State of Emergency” in accordance with the Constitution of the Republic of the Union.
5. In order to address the concerned of voters, Government of Myanmar decided to utilize Article 418 (a) of the Constitution of the Republic of the Union of Myanmar, which mandates the transferring of “Legislative, Judicial and Executive Powers” to the Commander-in-Chief of the Defence Services.
6. In conjunction with the Article 417 of the Constitution of the Republic of the Union of Myanmar, this emergency declaration shall remain in force for (one year), effective from today February 1, 2021.

Myint Swe
Pro Tem (President)
Republic of the Union of Myanmar

Source: The Global New Light of Myanmar

Republic of the Union of Myanmar
Office of the Commander-in-Chief of Defence Services
Notification No. 1/2021

5th Waning of Pyatho, 1382 ME
(1 February, 2021)

1. The Union Election Commission failed to address a large difference over the voting list used in the multiparty general election held on 8 November 2020. Although the request was made to call for the special session of the Second Pyidaungsu Hluttaw, it was failed to do so. The President refused the submission for two times to hold the National Defence and Security Council meeting.
2. The Union Election Commission will be re-constituted to continuously take appropriate measures, including checking the voting lists in accord with the law.
3. Prevention of the current outbreak of COVID-19 pandemic will be effectively carried out with momentum.
4. Efforts will be made to recover the businesses caused by COVID-19 pandemic as quickly as possible.
5. Emphasis will be placed as much as possible on restoring eternal peace all over the country in accord with the Nationwide Ceasefire Agreement (NCA).
6. When these tasks have been completed in accord with the provisions of the State of Emergency, a free and fair multiparty general election will be held, and then, the assigned duty of the State will be handed over to the winning party meeting norms and standards of democracy.

Office of the Commander-in-Chief of Defence Services

Source: The Global New Light of Myanmar

Investors expect business to return to normal in Myanmar by the third quarter of this year. Many also reckon that the technology, media and telecoms (TMT) sector would see the most investments or merger and acquisition activity in the next two years, according to polls taken at a conference held online by Ascent Capital Partners recently. Indeed, the Myanmar economy is expected to recover and reach growth levels of as much as 7 percent this year mentioned by the Union Minister for Investment and Foreign Economic Relations during the conference.

The Union Minister said that recovery will be backed by the government’s Myanmar Economic Recovery and Reform Plan (MERRP), which will prioritise sectors like manufacturing and services in the year ahead. Measures such as civil service reforms and digital transformation will also be implemented by the government. The Managing partner of Ascent Capital said that the firm’s three-year outlook for Myanmar is one of cautious optimism. Myanmar’s economy and business environment are still severely impacted by the COVID-19 pandemic, and it is unclear at this moment when full recovery will take place.

It is also mentioned that Ascent Capital focuses on longer timeframes and that government initiatives like the MERRP are important catalysts to drive growth in the economy over the next three years and beyond. As a Myanmar-focused investor with long-term plans in the country, they certainly intend to raise future funds but do not have the immediate need to do so. In terms of existing investments, this would depend on the opportunities that present themselves at the right time. But the general outlook is for the long term, in the next seven to ten years.

Ascent Capital is a private equity firm registered with the Monetary Authority of Singapore. The firm manages a Myanmar-focused investment fund which it says is the largest Myanmar-focused investment fund globally. The fund, which prioritises the consumer, education, healthcare, financial services, logistics and TMT sectors, closed in October last year with US$88 million in capital commitments. It is backed by the likes of Singapores’s Temasek Holdings, the Asian Development Bank and local drinks tycoon U Aung Moe Kyaw.

Source: Myanmar Times

According to the gold prices skimming in the global market, the gold market price in Myanmar has dropped to K1,318,800 per tical (0.578 ounces, or 0.016 kilogrammes) the domestic gold market. Although the global gold price stood at US$1,955 per ounce on 6 January, it plunged to $1,828 per ounce on 16 January with a decrease of over US$100 in 11 days as per market data. Similarly, the local gold price has fallen as a result of the situation in the international market.

The local gold price was only around K1,336,000 per tical on 6 January, but it spiked to K1,318,800 per tical on 16 January. Within 11 days, the domestic gold price plunged by K12,000 per tical. The local dollar exchange rate was also on the downside. At present, the local dollar exchange rate stands at around K1,339 per dollar. At the end of last year, the local gold reached the lowest 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 pace changed between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal price moved in the range of K1,280,000 (1 December) and K1,332,000 (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

There are around 13,350 high-end condominiums in Yangon, and prices have fallen by 10 to 15 percent compared to the previous six months due to weak demand, according to Colliers International (Myanmar), a Canadian-based international real estate services provider, in the third quarter of 2020. By the end of 2018, Rangoon was expected to have 10,553 international standard condominiums, but due to construction delays, there were only around 12330 in the fourth quarter of 2019. Due to declining demand in the market, mid-range and high-end condominiums are selling faster than high-quality and high-end condominiums, and luxury rooms are still more expensive due to demand from the rich. Nearly 3,000 more units are expected to be added in 2018, but most projects have been delayed due to delays.

 In the first quarter of 2019, 650 new chapters; 485 new rooms in the second quarter; In the fourth quarter, only 1,250 units entered the market. In 2019, 40% more rooms than in the same period last year. In the fourth quarter of 2019, the number of rooms increased by 11% compared to the previous quarter. In the first quarter of 2020, 730 units entered the market, and in the third quarter of 2020, it reached 13,350 units, an increase of 5.8% compared to the same period last year. By 2020, there will be nearly 30 condominium projects under construction, most of which have been delayed. Despite the market downturn, there will be around 14,000 condominiums by the end of 2020 due to the presence of Southall condominiums.  By the end of 2021, it is expected to have around 17,500 rooms.

The condominium purchase rate increased from 57% in the fourth quarter of 2017 to 59.2% in the first quarter of 2018. Third quarter of 2018 58% in the fourth quarter and first quarter of 2019; 53% in the second quarter of 2019; 61% in the fourth quarter of 2019; In the third quarter of 2020, it was 61 percent, and sales of condominiums that did not provide enough parking space were declining. Policy changes in 2016 delayed the operation of high-rise buildings, and as a result, the number of new condominium units in high-rise buildings decreased in the third quarter of 2018. Demand declined from the fourth quarter of 2018 to the second quarter of 2019, and rebounded from the fourth quarter of 2019. In 2016, Colliers estimated that an average of 2,100 condominium units would be produced annually over the next five years, but due to project delays, there will be around 1,600 units in 2016 In 2017, there will be around 900 rooms.

 In 2018, around 500 rooms; In 2019, about 3,000 new rooms appeared. The average price of an international standard condominium in Myanmar ranges from over $ 90,000 to around $ 900,000, and in the third quarter of 2020, the average price of the mid-range apartment is around $ 100,000 to $ 200,000. The average prepaid purchase rate increased from 53% in 2016 to 60.5% in 2017; It rose to 85 percent in 2018 and fell to 52 percent in early 2019. It rose to 61 percent by the end of 2019 and 61 percent in the current third quarter of 2020. According to Colliers, 14% of Myanmar’s international standard condominiums are medium-sized; 37% higher than average; High quality 36%; It has a luxury rating of 12%. In the fourth quarter of 2019, the average price per square meter of condominium was $ 1,500; $ 1,800, higher than average; $ 3,300 for high quality; $ 3,700 for luxury.

Source: Daily Eleven

The International Monetary Fund (IMF) has approved the release of financial assistance amounting to SDR 258.4 million to help Myanmar minimise the economic and social impacts of the COVID-19 pandemic. A statement from the IMF released on January 13 said their executive board approved a disbursement of SDR 86.1 million (16.67 percent of quota) under the Rapid Credit Facility (RCF), and a purchase of SDR 172.3 million (33.33pc of quota) under the Rapid Financing Instrument (RFI) for Myanmar. The total adds up to approximately US$372 million.

The SDR is an international reserve asset created by the IMF in 1969 to supplement its member countries’ official reserves. The value of the SDR is based on a basket of five currencies- the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling. The IMF assistance will aid Myanmar’s COVID-19 policy measures aimed at minimising the pandemic’s economic and social impact while supporting the vulnerable.

According to the statement, this is the second emergency financial assistance that IMF will be providing for Myanmar following the COVID-19 outbreak. The IMF executive board approved a disbursement of US$ 356..5 million for Myanmar on June 26, last year. This brings the total IMF financial assistance provided to Myanmar to address the ongoing pandemic to approximately US$700 million.

Source: Myanmar Times

The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and US Information and Communication Technology (US ICT) Council for Myanmar will continue working together to develop Myanmar’s digital economy. The UMFCCI said the cooperation will ensure Myanmar does not fall behind when it comes to the digital economy sector.

The UMFCCI vice chair said that the development of their digital economy is important. They will feel the effects if they are left behind by other countries. This is why they will cooperate (with the US ICT Council for Myanmar) last year and this is the second singing following the expiration of their initial one-year term.

The UMFCCI and the US ICT Council for Myanmar signed a new memorandum of understanding (MoU) on January 5. They will also cooperate in all sectors related to IT. The US ICT will provide technical and financial assistance though it is still not known how much funding the US ICT will provide. They will implement digital economy for the industrial and education sectors as well. The current Myanmar digital economy landscape has improved a lot of compared to the past.

Source: Myanmar Times