Weekly Business News from Myanmar

Total 1,000 companies has been struck off register due to the absence of annual return (AR) on the online register system
A total of 1,000 companies has been struck off the register as they fail to submit an annual return (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). The DICA has notified any registered company which fails to submit its AR on MyCO are to be suspended. The DICA found that 1,000 companies were unable to restore its status within six months of suspension under 430 (F) of Myanmar Companies Law and the companies were struck off the register starting from 7 December, according to the DICA’s notification. All registered companies need to file AR on the MyCO registry system within two months of incorporation, and at least once every year (not later than one month after the anniversary of the incorporation), according to Section 97 of the law.
The border trade between Myanmar and India through Tamu border gate resume promptly in line with health guidelines
Border trade (Tamu) between India and Myanmar will resume as soon as possible in accord with the guidelines of the Ministry of Health and Sports. “The union minister for commerce urged the resumption of border trade in line with the Covid guidelines and rules by making bilateral communications. In the coming week, the regional government and the minister will hold a meeting. Due to trade closures, merchants are making losses. There are fewer and fewer local job opportunities. Illegal trade increases. This is why we submit our reports to resume trade officially. We will do in line with the health ministry’s guidelines. Border trade will surely resume,” said Hla Maung, chairman of Border Trade Merchants Association (Tamu).
The saltwater fish farming development called government for favorable natural environment
Late development in saltwater fish farming Those residing in the rural areas in Myanmar account for 70 % of the total population of the Republic of the Union of Myanmar. The majority of the people do for a living relying on agriculture. The agricultural sector makes up 29 % of the gross domestic product (GDP) whereas the fish farming sector accounts for 30 % of the GDP of the whole agriculture sector. Fish farming plays an increasingly important role in the national fish supply of the country. The fisheries sector includes offshore and inshore fishing, inland fish ponds, inland freshwater aquaculture, tender fisheries, fish farming, fish and shrimp processing business. It is impossible to boost capture fisheries and so it is necessary to strive for the betterment of fish farming. The freshwater fish farming began in the 1950s is now making progress, but the saltwater fish farming is still lagging behind. The development of saltwater fish farming should be carried out in the appropriate places along the 2,832 km long coastal waters.
The price of areca nut keeps decreasing as Myanmar hasn’t exported to India yet
The areca nut price continued to drop because Myanmar has not exported it yet to India, according to the areca nut merchants. “The areca nuts are exported mostly to India via Tamu land border. Now, we haven’t shipped it yet to India, and the traders are holding over 400 or 500 tonnes of areca nuts. Some of the traders have stocked around thousand tonnes of nuts. Although we have domestic demand for areca nut, the price will be rising when the trader can export it to foreign counties, said an areca nut trader from Mon State. Now, the areca nuts are exported not only via border route but also sea route to Australia and Malaysia.
Myanmar’s watermelon export prices to China plunged by 25 percent tonnes
The price of watermelon exported to China fell by 25 per cent per tonne, vice-chairman Sai Khin Maung of fruit depot at Muse 105th mile trade zone said. A watermelon fetched over 7,000 Yuan per tonne in November-end, and the price now plummeted to 4,500 Yuan per tonne, he continued. “Watermelon prices rose to 7,000 Yuan per tonne in the previous weeks. The prevailing maximum price stands at only 4,500 Yuan per tonne. Watermelon with good packaging is, however, priced at 6,000 Yuan. Nevertheless, the price sharply dropped by 25 per cent. I guess there will be no possible price rise as high as before,” he shared his opinion. At present, more than 200 trucks loaded watermelon daily enter the Muse zone, and they are continued to go to China, according to Muse fruit depot.
Myanmar’s CMP garment exports decreased by USD $ 176 million in the first month of 2020 – 2021 fiscal year
Myanmar’s garment export sector, which constitutes over 20 per cent of overall export value, showed a steep drop of US$176 million in October of the current financial year, according to the data released by the Ministry of Commerce. In October of FY2020-2021, the country exported $203.95 million worth garments to foreign countries. The figure plunged from $384 million registered in October of the 2019-2020FY. At present, over 100 CMP garment factories temporarily shut down on the reason for the lack of raw materials and slump in demand due to the coronavirus negative impacts, leaving thousands of workers unemployed. Sixty-four factories have been permanently closed down during the pandemic, compensating about 25,000 workers. The data does not include those factories which have not resolved worker payments, the Ministry of Labour, Immigration and Population stated. The coronavirus impacts badly batter the labour-intensive enterprises according to the Directorate of Investment and Company Administration.
The new sugar price expected to fetch good price at the end of December 2020
The price of new sugar produced at the end of December is expected to rise as the stock of old sugar, and imported sugar is remained less, according to Sugar and Cane Related Products Association. “Local sugar mills are started running beginning from 5 December. The new sugar will be produced in December-end. The stock of old sugar has become lesser. Additionally, sugar import is rarely found in the meantime. Sugar price has surprisingly risen this year in the international market. The domestic sugar market also sees a potential,” said U Thi Ha Tun, secretary of Sugar and Cane Related Products Association. Sugar millers purchased sugarcanes in mid-December, and the mills are operating to produce sugar by the 2020-2021 sugarcane season. At present, the sugar mills in eastern and western Bago Region are running. The mills in northern and southern Shan State and Sagaing Region are soon to operate.
The plan is underway to be built a bamboo plywood mat factory in Myanmar to enable export to foreign markets
A plan is underway to build a bamboo plywood mat factory near Nay Pyi Taw in the middle region of Myanmar to enable export of them to foreign markets, said a resident of Myanmar who has experience in bamboo plywood mat factory in Manipur, India. “In Myanmar, we could get natural products easily. We will bring the machines from India and set them up in Myanmar. We will set up the factory with our own technology and our own capital investment. Now, an entrepreneur from Shan State is manufacturing the mats for over 20 years in Manipur, India. He bought the mats from the local weavers to glue them together.
In partnering with 2C2P, KBZPay will expand the digital payments network in Myanmar
2C2P, a payment platform, and KBZPay, the leading mobile wallet in Myanmar, have established a partnership to expand the digital payments network in Myanmar. The partnership will bring together 2C2P’s online payment systems and KBZPay’s mobile wallet technology to open up new possibilities for people in Myanmar to transact with global and local businesses. In addition, the partnership will connect 2C2P’s partners and merchants with KBZPay’s fast-growing customer base, driving new payment efficiencies and convenience. Aside from performing convenient and secure mobile transactions to pay for goods and services, make bill payments and manage everyday finances, this partnership will empower KBZPay’s 6.7 million customers in Myanmar to use their mobile wallets to transact with 2C2P’s extensive global and international merchants from today. These merchants include tech giants, online marketplaces, retailers as well as Myanmar-based companies.
Myanmar Corn Industrial Association (MCIA) will open corn commodity depot in Myawaddy in the third week of January in 2021
Myanmar Corn Industrial Association (MCIA) has planned to open Myawady corn commodity depot in the third week of January in 2021, said MCIA Chair U Min Khaing. The corn commodity depot will be opened to ensure fair trade of corn on the Myawady border and for the greater convenience of the trading. Although the commodity depot was first targeted to open on 1 April 2020, the opening of the depot was delayed by COVID-19 outbreak, he added. “Earlier, we were set to open the depot on the 1 April 2020. We have already invited the related officials. But we have postponed the opening of the depot because of the pandemic. Now, we have made a new schedule to open the depot in 2021. We are not sure as to what to do because the government declared the extension of the stay home till the end of December. We are ready to open the depot, but we have to invite the officials and traders from both countries. But we could not do so because of COVID-19. But we targeted to open it in the third week of January 2021,” he explained. We are attempting to open the commodity depot in January so that we could export the corn to Thailand under the tax-free system.