ASSESSING MYANMARS REFORM AND DOING BUSINESS IN MYANMARPROF.DR.AUNG TUN THET(AUNGTUNTHET@GMAIL.COM)

OVERVIEWPart One: Assessing Myanmars ReformsPart Two: Doing Business in Myanmar*

PART ONE: ASSESSING MYANMARS REFORMS*

All of us might wish at times that we lived in a more tranquil world, but we don't. And if our times are difficult and perplexing, so are they challenging and filled with opportunities. *

TODAY REALITIESVery interesting and exciting Volatile and Chaotic

GEOGRAPHYStrategic locationBetween the two economic global powerhouses China and IndiaBridge between South and South East Asia

DEMOGRAPHYPopulation54,584,650Age Structure0-14 years: 27.5%15-64 years: 67.5%)65 years and over: 5%Demographic Window

NEW WINDOW OF OPPORTUNITYSocio-economic progressOpportunities opening up Space growingLatecomer*

NATIONAL DEVELOPMENT STRATEGYEnds Poverty Reduction and Rural DevelopmentMeans Good Governance and Clean GovernmentEight-point Agenda*

NATIONAL DEVELOPMENT STRATEGYGoalsReducing poverty from 26.5% to 16% by 2015Graduate from LDCThree-fold increase in per capita GDP*

MYANMAR SPRINGExtraordinary, Unprecedented and Unimaginable!President U Thein SeinRapid speed of recent changesPeaceful revolutionTop-down

MYANMAR SPRINGOn the brink of a momentous economic floweringMost important period of political transitionReconciliation and addressing long-neglected needsMyit Sone Dam

POLITICAL DEVELOPMENTRelease of political prisonersDaw Aung San Suu Kyi and NLD in ParliamentContinued reconciliation between the Government and various ethnic groupsMyanmar Human Rights Commission

PEACE DEALS Nine out of 16 rebel groups signed ceasefire agreements since August 2011 Deal reached with KNU Norwegian Peace Fund, Peace Centre

LEGISLATIVE REFORMSDynamic leadershipNew laws enacted FDITaxationLand ReformFreedom of ExpressionFreedom of Association

LEGISLATIVE REFORMSEngagement with 88 GenerationWillingness to Listen to the Voices of the PeopleCheck and Balance

INTERNATIONAL RELATIONSRapprochement with the WestHigh-profile visits of senior Government and National and UN officialsRe-engagement with the international communityResumption of ODAGradual lifting of SanctionsASEAN Chairmanship in 2014AFTA/AEC in 2015

INTERNATIONAL RELATIONSEngagement with UNUN Country Team Strategic Framework (2012-15)

UNITED NTIONS ENGAGEMENTFour Strategic PrioritiesEncouraging inclusive growth in both rural and urban areasIncreasing equitable access to quality social servicesReducing vulnerability to natural disasters and climate change Promoting good governance and strengthening democratic institutions and human rights*

UNITED NTIONS ENGAGEMENTSocial ProtectionDevelopment Policy Options (DPOs)National Census (2013)UN Global Compact*

SOCIO-ECONOMIC DEVELOPMENTPriority to accelerate socio-economic developmentJob Creation Linkages between Peace , Democracy and DevelopmentGuaranteeing Rule of Law Promoting Civil Society Media

DEVELOPMENT PRIORITIESForeign exchange rate unification AgricultureNatural resources managementCompetitive business sectorFinancial/Banking Sector

DEVELOPMENT PRIORITIESEducation and HealthLegal structuresInfrastructure, and Policy formation and implementationMillennium Development Goals (MDGs)

CHALLENGES*

You cant cross the sea,merely by standing and staring at the water.

CHALLENGESSocio-economic and humanitarian challenges Weak capacity for implementing reformsBeginning not the endMuch still depends on individuals not policy

CHALLENGESSanctionsOfficial Development Assistance (ODA)Lowest recipient of ODA among all LDCs, with 7.2 US$ per capita in 2010FDIs

CHALLENGESKick-Starting/Jump Start Growth SEZs, Deep Sea PortsEquality of opportunities not outcomesPulled Along by China, India + ASEANPoor InfrastructureCorruption

FROM CHANGE TO TRANSFORMATION

PART TWO:DOING BUSINESS IN MYANMARMYANMAR IS OPEN FOR BUSINESS

Faith is the bird that feels the light and sings,when the dawn is still dark.

NEW MYANMAR One of Asia's final economic frontiersComparative advantagesGeographical location60-million untapped marketBountiful natural resources

INVESTMENT CLIMATENew Foreign Investment LawWestern countries to become highest investing countries Europe, Australia, Canada and USA cancelled the economic sanctions

NEW MYANMAR INVESTMENT SUMMIT JUNE 2012Representative from USA, Germany, France, Canada, British, Italy, Norway, Australia , United Arab Emirates (UAE), China, Japan, Singapore, Thailand, Korea, Malaysia, Indonesia, Philippines, Vietnam, Cambodia, Mongolia, Lao, Sri Lanka and Bangladesh attended

NEW FOREIGN INVESTMENT LAW (FIL) Company which joint venture with foreign company 5 years free of tax and 70 years permission to do business

INVESTMENT SITUATION: TOP 7 COUNTRIES

COUNTRYUS$ billion%China13.9 45.03Hong Kong6.320.37South Korea2.99.36Thailand2.57.99UK2.27.29Singapore1.54.83France0.51.62

FOREIGN INVESTMENTPrioritiesResource-based investmentResource-based export-oriented value added projectsLabour intensive export-oriented projects

WHY INVEST IN MYANMAR?

REASONSPopulation approximately 60 million (approx. 5 million in Yangon) Vast and virtually untapped natural resources Relatively educated labour force and low wages

REASONSStrategic location Sea and air links within the Asia region and beyond Generalized System of Preferences (GSP)100% foreign-owned enterprises permitted

REASONSFamiliar business structures and commercial laws (based on the British law codes of the pre independence India Statutes ) English widely spoken and usedSignificant incentives under the Foreign Investment Law for larger investments Membership of ASEAN, BIMST-EC

MARKET CHALLENGES

EXISTING CHALLENGESInternational sanctions not fully removed yetOpaque and arbitrary policymaking, including frequent, unannounced and unwritten policy changes

EXISTING CHALLENGES Investments approved on a case-by-case basis Weak rule of law and property rights No independent judiciary and lack of legal transparency Arbitrary tax policies

EXISTING CHALLENGES Tiny financial sector and shallow domestic capital market Continued unpredictability in electricity supply, especially areas outside Yangon and other major citiesPrivatization

EXISTING CHALLENGESWeak educational system and unskilled work forcePoor infrastructure including communications and transportation networks Evolving system of exchange rates and foreign exchange controls

CORPORATESOCIAL RESPONSIBILITY

MYANMARJoined the UN Global CompactPromoting Corporate Social Responsibility (CSR)Encouraging Socially Responsible FDIsRotary International

REVIEWPart One: Assessing Myanmars ReformsPart Two: Doing Business in Myanmar*

"Together we want to help the world see and believe,in a better future."

There are those who look at things the way they are, and ask why... I dream of things that never were, and ask why not?