Economy
Generally, Myanmar normally consumes about one million tons of edible oils per year in which 0.6 million tons of palm oil are imported annually. In FY 2022-23, 8.3 Million Acres of edible oil crops such as groundnut, sesame, sunflower, and mustard have been grown up and it is estimated to produce more than 680,000 Tons of edible oil for the whole fiscal year. The edible oil sector cultivation and production are called for the local and foreign Investors to invest and government provides tax incentive such as three to seven year tax exemption on income tax for self-sufficiency of edible oil in Myanmar.
Banking and Finance
- CBM allows export earnings by 50:50
Central Bank of Myanmar announced to lower Mandatory Conversion of Export Earnings to Myanmar Kyats from 65% to 50% with the Notification 15/2023 on 13th July 2023 which amends Notification 36/2022, issued on August 2022, “Exporters required 65% of the export earnings to be converted into Myanmar Kyats”. Hence, it is the gradual improvement in Foreign Exchange issues and shortage of Foreign Exchange Currency of Myanmar.
- Mobile financial services and digital payment growth
With the accelerative effort of the Central Bank of Myanmar on Digital payment system throughout the country in line with National Payments System Strategy (2020-2025), the Financial Technology Payment system has been enormously increased and Mobile financial services and digital payment system of Myanmar including for bank institutions, i-banking, mobile banking, mobile pay and mobile financial services have become remarkably boomed to 31.67 Billion in 2022, which was 47 percent increase compared to the previous year 2021.In order to develop financial services sector, CBM has already permitted those services and launched MMMQR Specification Version 1.0 for QR code payment in January 2019, achieving interoperability between payment systems of financial institutions through MMQR Specification Version 1.0 and stepping up to use crop-border QR code payment interoperability, the notification mentioned. On top of that, the Central Bank of Myanmar, is endeavoring to improve payment service providers’ platforms providing digital transaction services across the country to, especially, Nay Pyi Taw to become a digital city with the latest financial technology. Since May 2023, the CBM has been implementing digital salary payments to the officials and staff under the ministries to strengthen digital payments in the capital city.
The Central Bank of Myanmar has granted licenses to the public in terms of clearing system with QR Code Payment system in areas which are not easily accessible to use. Hence, Digital Payment system is widely available in places, regions, various strata, and various areas where there are no banking services Those clearance licenses are provided to those companies such as Nature Link Pay Co Ltd (brand name: Trusty E-Commerce), Zego Pay Co Ltd (brand name: Zego Money), and Internet Wallet Myanmar Ltd (brand name: OK$) in February, and Universal Pay Co Ltd (brand name: Unipay) in compliance with the terms and conditions of the license on 10 July, according to the statement of the CBM.
A new type of “twenty-thousand-kyat” banknote was officially released in 31st July 2023, with a commemoration of the completion of the Maravijaya Buddha Image in order to propagate the Theravada Buddhism and bring peace towards the country and in celebration of a year birthday of a white elephant, “Rattha Nandaka. Those note will be issued within a limited amount and be distributed only by exchange of the same value with various types of old banknotes that should not be appropriate for circulation in Myanmar. To being with, the old banknotes will be exchanged with the equal value at CBM Nay Pyi Taw, Yangon Branch and Mandalay Branch. As soon as the official announcement is released on 24th July 2023, there is fluctuation in Foreign Exchange Currency at the Market Rate of 1 USD is equivalent to MMK 3,450 and 1 Baht is 100 MMK and 1 RMB is 450 MMK.
Trade
The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement between the ten member states of ASEAN, Australia, China, Japan, the Republic of Korea, and New Zealand, came into effect in January 2022.Since July 2023, the authorized producers and exporters get benefits from preferential tariffs through the Certificate of Origin (CO) Form RCEP. That CO Form is available for products originating in Myanmar and intended for Export to ASEAN member countries, except: the Philippines and Vietnam. Interested parties can easily apply through export and import offices and border checkpoints under the Department of Trade, with established rules and regulations. Besides, for manufacturing related products, traders can obtain approved exporter status through the Online CO Application System (https://onlineco.myanmartradenet.com . Specifically, Cambodia, Laos, and Myanmar have been granted access to preferential tariffs, while Viet Nam receives moderate tariff benefits. Furthermore, the least-developed countries will enjoy additional exemptions as outlined in the United Nations charter supporting the Least-Developed Countries (LDCs), especially CLM countries. According to the agreement, RCEP members have to grant a 65 per cent customs tariff exemption. However, Myanmar, Cambodia, and Laos are only entitled to give a 30-per-cent tax-exempt to other entities a 30 percent tax to other entities. Furthermore, ten years after the agreement’s implementation, members are obligated to grant an 80 per cent tax exemption. Myanmar, however, has been given a transition period of up to 15 years for its trade sector
Online Shopping and sales have been strong since the pandemic periods, however, there is no handle tax issues and controlling over the products. As a matter of fact, Taxes should be paid wherever transactions are conducted. By doing this, it can save taxes for the country. Therefore, in accordance with the Section 4 and Sub-section (c) of the Essential Goods and Services Act, Online Sales have been declared as “Essential Service” by Ministry of Commerce, starting from 4th July, 2023. The Ministry has also empowered to issue prohibition orders, regulatory orders, supervision orders, protection orders, and necessary actions related to this service. This is done in order to restrict and prevent goods and services that may harm the interests of citizens, and to prevent the domestic transportation of goods and animals that may cause dangers, epidemics and unacceptable problems. Violation of the law is punishable by a minimum of six months to a maximum of three years in prison and a fine of not more than MMK 500,000, according to the law.
Energy
Renewable Energy has been enormously used throughout the world in order to fill up the Energy Demands and it’s environmentally benefits so that Governments throughout the World majorly focus on the Renewable Energy Sector. Among renewable energy, the countries have been using Gasohol called biofuel, which is a mixture of Ethanol 5% and Diesel 95%. Not only in European Countries but also in ASEAN Countries has majorly focused on renewable energy and ASEAN Countries planned to have 23% Bioethanol Fuel generation in 2025 and 35% in 2030. In Nationally Determined Contributions (NDCs) report, Myanmar is a country trying to reduce carbon emission by 2030 and start using Biofuel energy. Myanmar will produce 70,000 tons of bioethanol (2 million gallons per month) from Maize and Molasses.
Transportation
Road Transport Administration Department (RTAD) under the Ministry of Transport and Communication released that there are registered 3,206 electric vehicles as of June 2023. Among those, 77% (2,474) are two-wheelers vehicles, 15% (467) are passenger vehicles and 8% (263) are three-wheelers vehicles. Besides, as of June 2023, there are registered 6.3 million (6,366,854) gasoline cars, 512,283 diesel cars, 12,888 CNG cars, 69 LPG cars and 3,884 HV cars. The Steering Committee for the National Development of Electric Vehicles and Related Industries is mainly responsible for establishing policies for the development of electric vehicles and related industries, implementing tax exemptions for use of electric vehicles and provide other reliefs, setting necessary command instructions, rules and regulations and building public charging stations.
COVID As of 31st July 2023, there are (641,053) 639,740 active cases of COVID-19 in which 97 % have been recovered from the disease and compared to previous month, 1313 cases has been increased. Compared to previous month, only 2% active cases have been increased. However, the government has been continuously controlling the infection of COVID-19 and the rules and restrictions have been extended until the end of August 2023 by the Ministry of Health.