Posts in category: ECONOMY

ACCORDING to the online vendors, there is particular concern among online businesses over the
upcoming taxation and directive orders after the designation of the businesses as essential services. In accord with Section 4 and Subsection (c) of the Essential Goods and Services Act, online sales activities have been declared as essential services starting from 4 July. The Ministry of Commerce has been empowered to issue prohibition orders, regulatory orders, supervision orders, protection orders, and necessary actions related to this service. “Since the Ministry of Commerce has been given the authority to issue orders, tax issues may continue to arise. Some sell online, but I see that commercial sellers and self-owned sellers may suffer more.
There is no problem with charging those who sell diamonds and gold jewellery items, but if the tax rate is the same for online sellers who sell just one a day, a minority may suffer,” said U Myint Swe, a resident of Mingala Taungnyunt Township. Most online sellers are worried about the regulatory issues related to business licences and taxes. “Domestic online sales have been strong again during the period of Covid-19, so I think that the officials have responsibility for handling the tax issues and controlling over the products. Taxes are paid wherever transactions are conducted. This kind of online sales is a form of tax avoidance. This may be done because of the loss of taxes for the country,” said U Aung Gyi, a retired employee. Some of the traders have been selling local and foreign products including food, clothing and cosmetics online, but now some are selling housing and building materials, mobile phones, cars, lands, apartments and gemstones online. According to the Essential Supplies And Services Law enacted in 2012, if goods are identified as important goods, the ministry authorized by the Union government may regulate or prohibit import, sale, possession, storage, transportation, distribution, etc.

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 K500,000, according to the law.

Source: The Global New Light of Myanmar

Export of marine products earned US$69.425 million through maritime and border trade routes in April and May this financial year, according to the Ministry of Commerce.
Businesspersons send freshwater and seawater fish as well as farming fish to foreign markets. In this regard, export of fish and shrimp and other marine products are separately categorized in farming tasks. During the two-month period, export of fish pocketed more than $11 million, shrimp $1.68 million and other marine products $16.24 million.
In the total amount of exporting the fishery products, export of marine products through shipping secured $46.423 million whereas border trade process earned $23.002 million in sending the fishery products to foreign markets. Such products flowed out to neighbouring countries Thailand and China through Muse, Myawady, Kawthoung, Myeik and Mawtaung borders, Bangladesh through Maungtaw border and Laos through Kenglek border. Myanmar’s maritime products are regularly sent to China, Thailand and other neighbouring countries in addition to Japan and European countries.
A total of 480,000 fish farms are being operated to breed fish and shrimp across the nation. In addition, more than 120 cold storage facilities are being run for processing of marine products. Myanmar exports more than 20 species of fish including hilsa, giant sea perch, rohu, barbus and river catfish to foreign markets.
Marine products of Myanmar flow out to foreign countries through normal trade and border trade facilities. Currently, the export volume of marine products in Myanmar cannot regain the status before the Covid-19 period yet.
Myanmar earned $765.945 million from export of marine products abroad from 1 April 2022 to 31 March 2023 in the 2022-23 financial year, declining $19.076 million less than that of 2020-21 FY.
Myanmar set the hatchling season from April to June and the fishery season from July in the Myanmar Sea in the 2023-24 financial year.
Myanmar fishing entrepreneurs and fishermen operate the fishery business at relevant plots in the sea along coasts of Rakhine State, Ayeyawady and Yangon regions, Mon State and Taninthayi Region.

Source: The Global New Light of Myanmar

BANKING transactions for imports in the Myanmar-China border will be started from 1 August 2023,
according to a news bulletin 10/2023 dated 23 June 2023 issued by the Trade Department under the Ministry of Commerce. Initially, the banking transaction system was exercised on 1 November 2022 at the Myanmar-Thailand border points. And, this system will proceed to the Myanmar-China border from 1 August 2023. The importers must use the banking system with foreign currency (Yuan) purchased from local banks or export earnings deposited in local bank accounts, the CBM directed. Additionally, companies need to show export earnings or income statements, credit advice or bank statements while seeking a licence from the department.
The import licence will be granted for the amount not exceeding the account balance after screening the bank statement or export earnings or foreign currency purchase records. Importers who have already sought import licences are required to bring in the goods by 31 August 2023. If they failed to import before the deadline, their import licence will get cancelled. Regarding export earnings and income statements, the bank deposits put in the account after 1 January 2023 can be used. Exporting companies can use their earnings for imports or transfer them to other entities for import purposes at border checkpoints.

Source: The Global New Light of Myanmar

Yangon’s pulses market sees price fluctuation of black gram and pigeon pea (red gram) in June 2023, traders involved in pulses trading pointed out.
The prices stood at K2,374,000 per tonne of black gram (FAQ/RC) and K2,609,000 per tonne of black gram (SQ/RC) and K3,050,000 per tonne of pigeon pea on 20 June. Black gram was priced at K2,237,500 per tonne while pigeon pea price touched a high of K3,200,000 per tonne on 19 June.
The figures showed a sharp rise of over K130,000 per tonne of black gram and a significant drop of K150,000 per tonne of pigeon pea within one day, U Hla Myint, a trader told the Global New Light of Myanmar (GNLM).
The prevailing price of black gram broke a record high of K2,456,000 per tonne on 17 October 2015.
The black gram price touched a high of K2,425,000 per tonne on 17 June and two days later, the price plunged to K2,237,500 per tonne. Similarly, the pigeon pea price hit an all-time high of K3.33 million per tonne on 5 June 2023 and 15 days later, the price was down by K300,000 per tonne. The pulses market sees a big price swing.
There are 17 million acres of monsoon and summer paddy plantations and 9.63 million acres of pulses and beans. The main buyer India had low pulses output in 2023 so the demand is increasing. The prices are therefore likely to remain on an upward trend.
There were 2.76 million acres of black gram and 1.59 million acres of pigeon pea in the 2017-2018 financial year, accounting for 37 per cent of the overall bean plantations. The export volume of black gram and pigeon pea totalled 750,000 tonnes at that time, which constitutes 57 per cent of overall pulses export volume.
Monsoon pulses cultivation season has started and the newly harvested pigeon pea will enter the market at the end of the year. 

Source: The Global New Light of Myanmar

The price of pure gold remains high at around K3.1 million per tical (0.578 ounce or 0.016 kilogramme) in the unofficial domestic market on 3 May as the spot gold price rallied at $1,961 per ounce and Kyat against greenback depreciates at K2,960 in the grey market. Consequently, YGEA hiked the reference rate to over K2,310,000 per tical. There is a large price difference of over K700,000 per tical between the YGEA’s reference price and the price in the unofficial market. YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,960 in the unofficial forex market.

The US dollar exchange rate weighs on domestic gold prices. The YGEA requested sellers to make gold transactions below K2.9 million per tical on 27 April when the gap between the reference price and the market price is wide. Following the bankruptcy of the US bank in early March, the gold price soared. Despite the gold gain in the global market, Myanmar’s forex market sees no movement at all. Consequently, YGEA requested its members not to buy them competitively, tracking the upward trend in the gold spot price, as per YGEA’s statement released on 20 March. Afterwards, the YGEA called for the members to make gold transactions with only immediate payment and avoid verbal transactions over calls without having any physical stocks.

The YGEA is not bound to have any responsibilities for market manipulation in the unofficial market. As a result of this, its members are asked to strictly adhere to the rules and regulations of the association while making gold transactions. At present, the authorities concerned are attempting to deal with market abuse and inspecting and prosecuting market manipulation is being undertaken.

Moreover, the Central Bank of Myanmar will inspect those manipulators who interfere with market stability through digital platforms, according to the notification dated 20 March. The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022. For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw. With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well. 

Source: The Global New Light of Myanmar

THE Central Bank of Myanmar (CBM) has no plan to change the reference exchange rate and it will maintain USD liquidity and Kyat Liquidity providing operations, according to the CBM’s notification
released on 26 May. Additionally, the CBM will sell more foreign currencies at the FX counters of the relevant banks. To stabilize and enhance the FX market, the CBM has been providing liquidity through local banks. It helps reduce the need for US dollar liquidity and Kyat liquidity for the businesspersons and stabilize the exchange rate, the statement mentioned. However, those unscrupulous are attempting to take advantage of some people by manipulating the FX market with false rumours. This being so, the CBM announced that it has no plan to change the reference exchange rate. The CBM will continue to provide USD liquidity and Kyat liquidity. Those studying abroad, working abroad under the foreign recruitment program of the Ministry of Labour and going abroad for medical treatment are entitled to buy large amounts of foreign currencies at the banks’ FX counters and the CBM has planned to sell
the cards for international payment during the set period. The CBM warned the people of malicious rumours regarding the FX market. Investigation and prosecution of market manipulation to hike the exchange rate in the local forex market by disseminating incorrect information will be undertaken under the provisions stipulated in the Central Bank of Myanmar Law and Foreign Exchange Management Law. Tipping off about the manipulators can be done through the CBM’s email: gov.office@cbm.gov.mm.

Source: The Global New Light of Myanmar

THE Myanmar Trade Promotion Organization under the Ministry of Commerce, and the Lancang
People’s Government in Yunnan Province, the People’s Republic of China, are co-hosting Myanmar (Nay Pyi Taw)-China (Lancang) Trade Fair from 25 to 28 May. As part of the programme of the second day, the
Myanmar-China economic and trade cooperation discussion and the signing ceremony took place at the
Plenary Hall of the Myanmar International Convention Centre II (MICC-II) yesterday morning.
First of all, Lancang cultural dance troupes from the People’s Republic of China performed traditional
Chinese dances at the ceremony.

Afterwards, Director-General Daw Naw Muta Kapaw of the Myanmar Trade Promotion Organization, Economic and Commercial Counsellor Mr Tan Shufu from the Chinese Embassy, and Director Mr Zhou Yongzhi of the Lancang Commerce Department gave their opening speeches. Next, companies from Myanmar and China presented the conditions under which the two countries will be able to cooperate in trade. Then, 17 companies from both countries signed nine agreements on cooperation and trade in areas such as agricultural products, foodstuffs, soft drinks and beverages, pharmaceutical products, household electronics, and electric vehicles.

Source: The Global New Light of Myanmar

The price of pure gold remains high at around K3 million per tical (0.578 ounce or 0.016 kilogramme) in the unofficial domestic market on 3 May as the spot gold price rallied at $2,010 per ounce.
On 13 May, YGEA hiked the reference rate to over K2,368,000 per tical while the precious yellow metal was priced at K3,006,000 per tical. Consequently, there is a large price difference of about K600,000 per tical between the YGEA’s reference price and the price in the unofficial market.
YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,860 in the unofficial forex market. The US dollar exchange rate weighs on domestic gold prices. The YGEA requested sellers to make gold transactions below K2.9 million per tical on 27 April when the gap between the reference price and the market price is wide.
Following the bankruptcy of the US bank, the gold price soared. Despite the gold gain in the global market, Myanmar’s forex market sees no movement at all. Consequently, YGEA requested its members not to buy them competitively, tracking the upward trend in the gold spot price, as per YGEA’s statement released on 20 March.
Afterwards, the YGEA called for the members to make gold transactions with only immediate payment and avoid verbal transactions over calls without having any physical stocks. The YGEA is not bound to have any responsibilities for market manipulation in the unofficial market. As a result of this, its members are asked to strictly adhere to the rules and regulations of the association while making gold transactions.
At present, the authorities concerned are attempting to deal with market abuse and inspecting and prosecuting market manipulation is being undertaken.
Moreover, the Central Bank of Myanmar will inspect those manipulators to interfere with market stability through digital platforms, according to the notification dated 20 March.
The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022. For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw. With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well. 

Source: The Global New Light of Myanmar

India-based Adani Business Group has sold a port and special economic zone project in Yangon for $30 million, according to Reuters.

Adani’s assets have been bought by a company called Solar Energy for $30 million, Reuters reported.

According to the statistics released in May 2021, the Adani group company invested US$127 million to establish the Yangon Port and Special Economic Zone in Myanmar, of which US$90 million was used for land.

According to a person close to the company, the investment of Adani company in Myanmar could be up to 195 million dollars, the news continued.

Reuters reports that Adani officials have yet to comment on the sale of multi-million dollar investments in Myanmar at a loss.

Adani Group announced in May last year that it would sell its investments in Myanmar as the United States imposed sanctions on Myanmar.

Source: Daily Eleven

A total of 1,270 Myanmar food processing companies and factories submitted over 2,200 applications to the General Administration of Customs of the People’s Republic of China (GACC) within 18 months, according to the Ministry of Commerce.

According to GACC Decres 248 and 249, GACC registration is mandatory for food exporters starting from 1 January 2022. Those individuals executing edible oil, oil seeds, stuffed pastry products, edible bird’s nest and related products, edible grains, grains milling industrial products and malt, fresh and dehydrated vegetables, dried beans, plant species, nuts and seeds, dried fruits, unroasted coffee and cocoa bean, special dietary food excluding milk-based formula, functional foods, honey products, aquatic products including farm products, animal products and animals feed and livestock animal businesses need to apply for GACC licences to place their goods in China’s market.

The relevant authorities for the registration with GACC are the Agriculture Department, the Livestock Breeding and Veterinary Department, the Fisheries Department and the Food and Drug Administration Department. Between 1 December 2021 and 28 April 2023, 2,279 applications by 1,270 factories have been forwarded to the GACC through the Agriculture Department (2,136 applications), the Fisheries Department (120), the Livestock Breeding and Veterinary Department (14) and the Food and Drug Administration Department (nine).

Exporters can directly access China International Trade Single Window through https://cifer.singlewindow.cn by creating accounts for those food groups which are not listed on those aforementioned 18 groups. As of 21 April 2023, a total of 1,844 applications have been successful in registering with the GACC with the approval of the competent authority.

Regarding the registration of the importing companies, the Department of Animal and Plant Quarantine under the GACC will check quarantine access for the imported grains, raw coffee beans, cocoa beans, vegetables, spices, edible grains, pulses, oil crops and herbal animal products and plant for their origins. The companies cannot directly proceed with registration and they need to carry out this step through competent authorities and departments concerned by sending emails via dapq@customs.gov.cn or submitting letters to the Chinese Embassy to Myanmar or Myanmar Embassy to China.

Source: The Global New Light of Myanmar