CBM revokes forex licences of 20 companies including Myanmar National Airlines

Twenty money changers including Myanmar National Airlines have got their forex licence revoked starting from 14 March as they failed to comply with the rules and directives issued by the Central Bank of Myanmar (CBM), according to its Board of Directors meeting. They are Oake Khaung Travels & Tourism Senjo Royal Myanmar, Dawei Popular, Zam Myo, Phyo Thet, Sky Bound, Myanmar MCG Corporation, Htwe and Htwe Family, Won Won, United Eleven, Tun Yama, Myanmar Alinka Hotel Group, Cartel, Super Phoenix, Golden Falcon Shipping, Fairness Travels & Tours, Yadana Bon Travels & Tours, Myanmar National Airlines, Dewant Financial Loan Microfinance and Treasure Su.

The CBM set the reference exchange rate at K2,100, while a US dollar was exchanged at K2,880 in the unofficial market. CBM has set the currency trading band at 0.3 per cent for the Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying, according to a directive issued by the CBM on 10 August 2022. Therefore, financial institutions including banks and informal money exchanges are instructed to set a dollar value at K2,094 for buying and K2,106 for selling. However, the over-the-counter Kyat-dollar exchange rate was K2,865 for buying and K2,880 for selling on 17 March. There is a large price difference between the reference rate of the CBM and the unofficial market rate. However, there is no way to set the new price, as per the notification released on 15 January.

Investigation and Prosecuting of market manipulation to hike the exchange rate in the local forex market with the malicious rumours will be undertaken, according to the Central Bank of Myanmar’s statement released on 10 February. Some exporters, importers and banks are attempting to raise the exchange rate owing to the rumours. The statement called for bank institutions to govern the market and investigate those fraudsters who circulate rumours. The CBM released a notice that the exporters, importers and banking institutions are asked not to elevate the exchange rate. Those banking institutions that will not abide by financial regulations will face legal action as well. Last August, a dollar value hit an all-time high of over K4,500 in the grey market. Consequently, the CBM sold dollars at its auction market for the sectors in need, to control the soaring dollar, injecting a total of $443.8 million in the markets in 2021. 

Source: The Global New Light of Myanmar

Octane surpasses diesel prices

The prices of Octane exceeded diesel in the retail market on 16 March 2023, tracking the positive global cues. The fuel prices were K2,150 per litre of Octane 92, K2,235 for Octane 95, K2,135 for diesel and K2,215 for premium diesel in Yangon markets. On 16 March, the prices stood at K2,041 per litre of Octane 92, K2,124 for Octane 95, K2,031 for diesel and K2,105 for premium diesel. The crude oil price plunged to a 15-month low at US$67.55 per barrel.

In August 2022, the oil prices surged to K2,605 per litre for Octane 92 and K3,245 for diesel. The diesel price is way higher than the Octane price. The price of diesel became lower than Octane on 16 March. The price decrease of diesel will facilitate freight forwarding businesses. Since May 2015, the Octane price has been cheaper than diesel. In 2008, diesel price was around K300,000 per barrel.

The price exceeded K79,000 per barrel on 21 February 2009, Ko Soe Min, a freight forwarder, told the Global New Light of Myanmar (GNLM). Diesel is primarily used in freight forwarding businesses, generators and machinery. The price drop might save some cost. Sharp fall in crude oil prices on positive global cues weight on the domestic fuel market as well, and market observers shared their opinions. 

Source: The Global New Light of Myanmar

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Yangon licence to be issued to only EVs imported for surrendering old cars with Yangon licence

The Road Transportation Administration Department has announced that it will issue Yangon licences to electric vehicles (EVs) imported for surrendering old cars with Yangon licences.

RTAD will register EVs under the existing laws, regulations, orders and directives. Some of the first-batch EV cars are used as taxis in Yangon Region and Nay Pyi Taw. As a pilot project, some domestic vehicle-importing companies are allowed to import 3,000 EVs without having to pay duties and taxes.

The construction of EV charging stations is underway in Yangon, Nay Pyi Taw, Mandalay and along the Yangon-Mandalay Expressway, and is slated to be completed by the end of March.

Source: The Global New Light of Myanmar

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Myanmar carries out trade worth $32.549 mln via Tachilek, Kawthoung borders in Feb

Myanmar’s cross-border trade with neighbouring Thailand through Tachilek and Kawthoung points was estimated at US$32.549 million, the Ministry of Commerce’s statistics indicated. Last month, the trade value through the Tachilek border totalled $12.573 million, including exports worth $6.268 million and imports valued at $6.305 million.

Tachilek border achieved 83.82 per cent of the trade target. The figures showed a decrease of $1.282 million in exports and an increase of $0.653 million compared to those registered in the corresponding period last year.

The border trade through the Kawthoung checkpoint amounted to $19.976 million in February, with exports worth $17.537 million and imports worth $2.439 million. The trade value was down by $9.003 million from the year-ago period. Myanmar saw a rise of $5.785 million in the Tachilek border last month from January, whereas the border trade was up by $1.566 million from January. 

Source: The Global New Light of Myanmar

Weekly market update of dry groceries at Bayintnaung Wholesale Centre

During the week ending 14 March 2023, the prices of Kyukok garlic, black gram, pigeon pea and chickpea went up, whereas the prices of sugar and palm oil declined in the Bayintnaung Wholesale Centre.
onion
Yangon’s commodity trading hub saw the entry of 2,364,000 visses of onions in 14 days this month, with an average supply of 210,000 visses per day. The prices moved in the range of K1,050 and K1,850 per viss depending on the quality, size and producing areas (Seikphyu and Myittha) on 14 March.
Garlic
On 14 March, the prices stayed at K3,200-4,000 per viss depending on varieties and qualities, whereas Kyukok garlic fetched K4,300 per viss.
Potato
The wholesale prices of local potatoes moved in the range between K1,300 and 1,900 per viss depending on producing areas.
Chilli pepper
The wholesale prices of chilli peppers were K11,000-12,500 per viss for long chilli pepper and Moehtaung variety. The prices of bell peppers from the Sinphyukyun area and delta regions were K14,500-16,000 per viss respectively.
Rice
The prices stood at K52,000-53,000 per bag for summer rice grown under the intercropping system, K57,000 for low-grade short-matured summer rice (90 days), K49,000-50,000 per bag of low-grade Ngasein rice variety, K68,000 for Pawsan rice from Bogale, K71,000 from Pyapon, K73,000 from Myaungmya, K85,000 for Pawsan rice from Shwebo area respectively.
Palm oil
The wholesale reference price of palm oil in the Yangon Region showed a small increase of K35 this week. The reference price for a week from 13 and 19 March is set at K4,635. Palm oil is priced at US$1,053 per tonne in the global market. However, the wholesale market price dropped to K6,500 on 14 March from K6,900 per viss on 9 March.

Source: The Global New Light of Myanmar

Trademark Law to be effective from 1 April 2023

The Trademark Law enacted in 2019 will come into effect from 1 April 2023, according to the official notification. The Ministry of Commerce will receive filing for a trademark from the effective date.

The centers will be opened to receive trademark applications in Yangon city and Nay Pyi Taw. This law will promote investment and commerce by protecting the trademarks and interest and legal rights of the owners.

It also helps elevate the brand’s value and penetrate global markets, Yangon Region Chief Minister U Soe Thein said at an awareness event for the Trademark Law. Myanmar is a member of the World Trade Organization and World Intellectual Property Organization. 

Source: The Global New Light of Myanmar

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Edible oil prices vary in Yangon market despite reference price

Yangon’s edible oil market has seen two different prices since some news reports that there was no more oil in the oil tank and that people had to buy edible oil at the price of K6,600 per viss from oil hoarders came out in the market. The wholesale price of edible oil was K7,000 per viss at the shops on 9 March while some wholesalers sold at K6,050 per viss to regular customers. Even though the relevant authorities announce the reference wholesale price of palm oil weekly, the wholesale price was more than K2,000 higher than the reference wholesale price from mid-February to the beginning of March.

On 10 March, the palm oil was sold at K6,050 per viss at the Nyaungpinlay market and K6,400 per viss at the Bayintnaung market, a buyer said. An oil trader said that the wholesale price of oil at the Bayintnaung market went up to K6,800 per viss on 11 March. The demand for palm oil is weak this week due to consumers who bought palm oil at a price of more than K7,000 per viss. Therefore, it is known that the price has not been increased yet. The palm oil price was cheap in some regions while it was high in Yangon.

The price of palm oil including the delivery fee to the store was just K6,400 per viss in some regions on 7 March and K6,350 per viss on 8 March, a grocery seller, Ma Than Myint told the Global New Light of Myanmar (GNLM). On 8 March, 10,326 tonnes of oil entered the Thilawa port and 5,500 tonnes of oil entered the Hteedan port in Kyimyindine Township. According to the information that the wholesale price will drop from over K7,000 to K6,000 per viss, the palm oil was sold at K6,050 per viss in the Yangon oil market. However, it is reported that only a few outlets sell at the above price.

Source: The Global New Light of Myanmar

CMP garment export brings in over $4.7 bln in 11 months of this FY

CMP garment exports generated over US$4.7 billion income abroad during the first 11 months of the 2022-2023 financial year, according to the statistics of the Myanmar Garment Manufacturers Association. Garment factories operating under CMP system were able to export to foreign countries from April 2022 to February 2023 of current FY. Garment industries in Myanmar are run by local entrepreneurs, China, South Korea, Japan and Thailand. Myanmar exports products of these industries to China, Thailand, Singapore as well as European countries.

Deputy Minister for Labour U Win Shein, at the garment factories in Shwelinban and Shwe Thanlwin Industrial zones in Hlinethaya township on 13 January, said that being factory managers, they have to understand that the capacity of skilled workers is the primary factor for timely export of products. He urged them to build fair relationship with workers and employees, must observe and practise the workplace regulations. The garment industry is the major source of job opportunities and emphasizes the producing skilled workers. Employers and employees stand to benefit through mutual interests. Employees must remain committed to their business, he said.

According to the deputy minister, the ministry is responsible for issuing national-level employment certificates that recommend their skill levels. To achieve this, assessment centres would have been set up in garment factories run with significant number of workers, in collaboration with partner ministries, to evaluate their skills without interrupting their work procedures, he added. Now, there are a total of 738 factories operating throughout the entire country including 505 garment factories, 48 shoe manufacturing factories, 8 wig factories, as well as 117 factories involved in bags, sportswear, sports shoes, and socks. All of these enterprises are running their operations in compliance with the rules and regulations. 

Source: The Global New Light of Myanmar

Upward trend of domestic fuel oil prices persists

Domestic fuel oil market sees price spikes. The prices have been volatile since February. On 10 March, the prices touched a high of K2,150 per litre of Octane 92, K2,235 for Octane 95, K2,175 for diesel and K2,255 for premium diesel. The domestic fuel prices are set depending on the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. Last August 2022, the oil prices surged to K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,330 for premium diesel and K3,245 for diesel.

The committee is therefore governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and to ensure price stability for energy consumers. The Petroleum Products Supervision and Inspection Department, under the guidance of the committee, is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate in Yangon Region is set on the MOPS’s price assessment, shipping cost, premium insurance, tax, other general cost and health profit percentage.

The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the retail reference rates daily covered on the state-run newspapers and are posted on the media and official website and Facebook page of the department daily starting from 4 May. The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging rather than the set reference rate. As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally.

The domestic fuel price is highly correlated with international prices. The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those of regional countries. Some countries levied higher tax rates and hiked oil prices than Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also levies only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. 

Source: The Global New Light of Myanmar

38 petrol stations to be affiliated with EV charging stations within 3 months

Deputy Minister for Construction U Win Pe recently said plans to construct EV charging stations within the next three months at 38 designated petrol stations in Yangon, Yangon-Mandalay Expressway and Nay Pyi Taw.

The National-Level Leading Committee on the Development of Electric Vehicles and Related Businesses have approved the installation of EV charging stations as part of the first phase of the project. Twenty-four fuel outlets in Yangon, seven on the Yangon-Mandalay Expressway and seven in Nay Pyi Taw totalling 38 will be affiliated with EV charging stations.

A total of 51 chargers are set to be installed across 38 petrol stations as part of the EV charging infrastructure project. At present, authorities are requesting charging station plans from petrol retailers to facilitate the installation process.

Source: The Global New Light of Myanmar