Posts in category: ECONOMY

MYANMAR Rice Federation (MRF) issued a warning ahead of the price hike at Yangon’s rice wholesale centre. MRF stated that it will inspect those manipulators who spread malicious rumours on digital platforms to spark the concerns of the consumers and raise the rice prices for the sake of the long-term benefit of the rice industry. The federation will forward the reports to the relevant authorities. Those
stakeholders in the supply chain need to exert concerted efforts in this, as per the MRF’s notification dated 24 April. This move is to stabilize the rice price and steer the market for the right price and
the right product.

The MRF will join hands with the rice millers, rice traders and companies. Additionally, it encouraged the mill owners to achieve performance balance between the short term and long term. Individuals and family entities can contact the rice wholesale centres for a fair price and the right product. It is mentioned in the statement that the office of MRF can be contacted in the event of any difficulty. On 25 April, the prices of rice stood at K82,000-K1,060,000 per bag of Pawsan rice depending on producing areas (Shwebo, Myaungmya and Pyapon and Bogale), K72,000 for Pawkywe, K65,000 for short-mature summer rice (90 days) and K60,000 for monsoon Nangka variety. As the growers have sold the paddy out, the traders who keep the stocks in their hands are making great profits. Consequently, the price has risen. The price hike occurred three times in 2023.

The price of rice usually goes up in the Yangon market when old stocks diminish and the harvest season has not come. This year, the price goes up for various reasons. The rice prices spiked as per speculations on rice prices in the post-Thingyan period. The authorities warned those unscrupulous traders of spreading any malicious rumours on social media to trigger the consumers’ concerns. The consumers also request the traders to have sympathy for them.

Source: The Global New Light of Myanmar

The Working Committee on Special Exemptions on Electric Vehicles and Related Industries notified that the special commodity taxes for EVs will be exempted until the end of March 2024.
In the 2023 Union Tax Law, the commercial tax on battery electric vehicles (BEVs) including battery-used electric two-wheeled and three-wheeled vehicles, accessories, and battery charging services, and the special commodity tax on EVs are spared from 1 April 2023 to 31 March 2024.
According to the release, they are working to allow tax exemption until the end of March 2024 since the zero per cent customs duty set for electric vehicles imported from abroad under the CBU, CKD and SKD systems expired at the end of March this year.
It is mentioned in the statement that road/bridge tolls for EV vehicles need not be paid for two years from 1 April of this year until 31 March 2025.
In addition, it is reported that EVs initially registered from 2023 to 2025 have been exempted from 100 per cent wheel tax, city entrance fee, toll, charges for overweight load, showroom fee, business licence, overnight fee, property tax among others. 

Source: The Global New Light of Myanmar

The Central Bank of Myanmar organized a meeting on procedures to implement Rupee/Kyat direct
payments for India-Myanmar trade with governmental departments, state-owned banks and private banks in Nay Pyi Taw yesterday. The meeting was attended by the governor and vice-governors of the Central Bank of Myanmar, the joint secretary of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the director-general of the Trade Department under the Ministry of Commerce, the deputy director-general of the Customs Department, directors- general, deputy directors- general, officials of stateowned banks and private banks. During the meeting, the officials discussed the successful implementation of Yuan/Kyatand Baht/Kyat direct payment on border trade with China and Thailand, plans to implement Rupee/Kyat direct payments for India-Myanmar trade, formation of a working committee on the implementation of Rupee/Kyat payment system under the lead of CBM comprising representatives of Ministry of Foreign Affairs, Ministry of Planning and Finance, Ministry of Commerce, state-owned banks, State Bank of India, Punjab Nation Bank and Yangon Representative Office. It also focused on the Rupee/ Kyat payment Concept Paper approved by the Reserve Bank of India to be conducted by Myanmar and India with the cooperation of the Indian Embassy in Myanmar, designation of Punjab National Bank, India, as a designated bank to carry out Special Rupee Vostro (SRV) account of Myanmar banks, advantages for bilateral trade and payment methods approved by the central banks of two countries. Then, CBM Governor Daw Than Than Swe said it will take into account the fact of the
Rupee/Kyat direct payment system for normal trade in addition to border trade and the importers and exporters will be informed as soon as the instructions and approval of banking system are received, and she concluded the meeting.

Source: The Global New Light of Myanmar

It is enacted in the National Planning Law 2023-2024 as a project objective to make the average gross domestic product of individuals (Per Capita GDP) to be more than K2.45 million at annual prices.
The average GDP is expected to increase by K400,000 over the 2022-2023 financial year. It is included in the National Planning Law signed and enacted by State Administration Council Chairman Senior General Min Aung Hlaing, on 31 March.
The National Planning Law, which takes effect on 1 April, is expected to increase gross domestic product and services (GDP) by 4.1 per cent at regular prices. More than K8,300 billion will be invested from the role of State, and it has been determined that only projects that benefit the state and citizens must be implemented.
In the last draft of the National Planning Law 2022-2023, the average gross domestic product of each individual (Per Capita GDP) was targeted to increase from K2,052,528 to K2,222,230 at annual prices.
In the current National Planning Law, the participation ratio of the agricultural sector, the industrial sector and the service sector in the total value of gross domestic product and services in annual prices are expected to reach 2.5 per cent, 4.8 per cent and 6.7 per cent respectively. If the Union Government verifies that the submitted projects do not generate interest, the projects will see rejection, suspension and less approval, the National Planning Law stipulates.

Source: The Global New Light of Myanmar

Kyat depreciation against greenbacks persists at K2,870 in the grey market although the Central Bank of Myanmar set the reference exchange rate at K2,100. 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 K2,855 for buying and K2,870 for selling on 31 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 December. 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. A total of $443.8 million were sold at an auction rate in 2021 as well. 

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) will steer private sectors to ensure that the foreign currency earned from exports will be deposited in the local bank accounts, the CBM’s governor Daw Than Than Swe said. On 20 March, the governor made that remark at a meeting held in Nay Pyi Taw with the companies that fail to deposit export earnings.

According to Sections 18 (A) and 38 (B) of the Foreign Exchange Management Law and directive 27/2021, exporters to Asian countries must deposit their export income within 45 days from the starting day. Those shipping goods to countries outside Asia must deposit income within 90 days.

The Central Committee on Ensuring Smooth Flow of Trade and Goods, the Ministry of Commerce, the Bureau of Special Investigation and the Working Group on facilitation of Trade and Goods are monitoring whether there is actual export income into the local bank account or not. Export earnings are one of the main foreign capital inflows. It also plays a pivotal role in stabilizing the forex market. Strong compliance of the export companies to the Foreign Exchange Management Law, rules and regulations will facilitate money flows. 

Source: The Global New Light of Myanmar

Yangon Region Gold Entrepreneurs Association hikes reference rate to over K2.34 mln per tical (0.578 ounce or 0.016 kilogramme) with the gold spot prices rising. On 1 March, gold spot prices hit US$1,833 per ounce and YGEA’s price was K2,159,500 per tical. As the gold spot price rallied to $1,989 per ounce in the international market, the reference price of the YGEA jumped to K2,343,300 per tical on 18 March. The figures indicated an increase of $156 per ounce and over 180,000 per tical within three weeks. Despite the YGEA’s reference price, pure gold climbed to K2,980,000 per tical in the unofficial market, showing a large gap of over K630,000 per tical with the reference price.

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 K2,870 in the unofficial forex market. The gold spot prices and dollar exchange rates influence the domestic gold price. 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.mUnder the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 21 January 2022 as gold and currency market stability play a crucial role in the trade facilitation.

The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules or not in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. 

Source: The Global New Light of Myanmar

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

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

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