PwC MyanmarWeekly Business Intelligence

Issue 4310 February 2017

www.pwc.com/mm

PwC | February 2017

1. Weekly Key Financial & Business News

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PwC | February 2017

Weekly Key Financial & Business NewsHeadlines

Government Plans to Introduce ePassports in Bid to Increase Border Security

Serge Pun optimistic on real estate demand

New Investment Law Rules to be Announced in March

Bank to Support Gem Industry Expects to Launch This Year

Easing Yangon’s traffic woes: by road and waterways

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MRTV Names 10 Companies Shortlisted for TV Licenses

25 Bagan hotels get green light but only for 15 years

PwC | February 2017

Weekly Key Financial & Business NewsHeadlines

Ministry to Develop Specialized Textile and Garment Zone

MoUs inked to step up Thailand-Myanmar cross-border trade

Hluttaw calls for higher taxes as oil, gas revenues decline

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Government cuts down foreign debt

Banks in Myanmar will adopt UnionPay Chip Card standard

Diebold Nixdorf targets retail market

PwC | February 2017

NewspapersConsult Myanmar

MRTV Names 10 Companies Shortlisted for TV Licenses

RANGOON — The Ministry of Informationannounced on Thursday that 10 companies havebeen named to a shortlist for television contentprovider licenses.

Late in 2016, the ministry put out a call to localcompanies interested in becoming contentproviders. The selected companies will belicensed to broadcast digital free-to-air televisionunder the umbrella of the state-owned MyanmarRadio and Television (MRTV) office.

The ministry announced in October that 42companies had expressed interest obtaining alicense. Those 42 were narrowed down to 29companies which submitted formal proposals.

Then MRTV brought in an outside consultingfirm, Tun Group Asia, to further narrow down thelist of candidates. Tun Group Asia cut the list of29 companies down to 10—now the officialshortlist—which it considered the best candidates.

From the remaining 10 firms, MRTV must select

only five companies for licensing.

The 10 shortlisted firms are: Eleven Media,Mizzima Media, DVB Multi Media, Bo BoEntertainment Myanmar, Tikhina, VOIPMyanmar, Global Technology, FortuneInternational, Kaung Myanmar Aung, and YoungInvestment Group.

The final five companies will be chosen soon afteran additional round of meetings and moredetailed proposals are submitted, the ministryannounced.

The five selected companies will operate theirown channels within MRTV, which is one of fourentities that controls broadcasting licenses. Theother entities are the Forever Group, ShweThanlwin, and Myawaddy TV.

Source : Consult Myanmarhttps://consult-myanmar.com/2017/02/04/mrtv-names-10-companies-shortlisted-for-tv-licenses/

04 February 2017

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PwC | February 2017

NewspapersMyanmar Business Today

Government Plans to Introduce ePassports in Bid to Increase Border Security

In a bid to increase passport security the Ministryof Home Affairs is planning to introduceePassports to Myanmar citizens, with the projectto be put out to tender for local and foreigncompanies, a government official has said.

ePassports, or biometric passports, containinformation inside a chip and antenna embeddedin a page of the passport which is used toauthenticate the identity of travellers.

“We are planning to upgrade from the currentmachine-readable passports to ePassports of in-ternational standards to tackle fake passports andsecurity concerns,” said Kyaw Soe, a police officialfrom the passport office.

Myanmar passports come in three types: red forordinary citizens with five years validity, green forgovernment officials with three years validity andblue for diplomats.

Since 2012, the passport office has taken a varietyof measures to make it easier for Myanmarcitizens to get a passport. Passports were

previously prohibitively difficult to obtain withthe issuing and renewing process mired in red-tape, bureaucracy and corruption, while manyapplications were arbitrarily rejected.

Liberalizations to the process brought in underthe USDP government means passport applica-tions and renewals now take ten days at a cost ofK25,000 ($25) down from 21 days at a cost ofK50,000 ($50). The validity of normal passportswas also extended from three to five years.In order to speed up the passport issuing process,authorities have recently introduced a separateservice for urgent passport applications forpatients receiving emergency medical treatmentabroad. For applicants over 60, monks and preg-nant women, a separate service has been intro-duced which allows them to apply remotely if theyare unable to apply in person at the passportoffice.Source : Myanmar Business Todayhttp://www.mmbiztoday.com/articles/government-plans-introduce-epassports-bid-increase-border-security

06 February 2017

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PwC | February 2017

NewspapersMyanmar Times

Serge Pun optimistic on real estate demand

For much of the last two years, things seemed notto have gone well for the real estate sector. Amidthe chorus of caution and anxieties, however,some still chant optimism – Serge Pun seems tobe rather assured with the outlook of the marketdemand.

The local tycoon, during a First MyanmarInvestment (FMI) press conference on February4, said that the real estate sector has developedvery slowly over the last 24 months and that thereare many reasons behind the weaker growthcovering the pre-election period as well as theNLD-led administration. Investors have pausedand awaited the changes brought about by thechange of government. The new government hasbeen reviewing legislation put in place byprevious administrations and the businesscommunity is waiting for more concrete details.

Pun’s remarks echo those of U Myo Myint, chairand CEO of MKT Construction, who told TheMyanmar Times earlier that the arrival of the newgovernment prompted investors to undertake a“wait and see” approach, adding that 2016 was “a

very bad year”. Last week, the IMF cited thesluggish construction activities as a factor leadingto Myanmar’s softer-than-expected growth in thefiscal year 2016-17.

However, Pun’s rhetoric is considerably moreoptimistic.

“I don’t think that the slow growth of the realestate business is a bad situation, because overthe past 24 months, the market was slow but theprice was stable. But five years ago [in 2012], [for]the real estate market, especially in Yangon, theprices of lands and apartments or condos weresurging extremely rapidly [to the extent] that wecan call [the situation] a critical condition. So,now, the government has adjusted the market andthis situation is no longer as worrying,” he toldThe Myanmar Times.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/24838-serge-pun-optimistic-on-real-estate-demand.html

06 February 2017

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PwC | February 2017

NewspapersConsult Myanmar

New Investment Law Rules to be Announced in March

RANGOON — Burma’s Directorate of Investmentand Company Administration (DICA) willannounce new regulations for the nationalinvestment law in early March, in time for thestart of the 2016-2017 fiscal year, according do asenior DICA official.

The current Foreign Investment Law and CitizenInvestment Law—known together as theMyanmar Investment Law—were enacted inOctober by President U Htin Kyaw. The lawcreated incentives for investors to get involved incertain business sectors that the government hadtargeted for development.

“We have established a timeline for finishing upthe bylaws,” the DICA official said. “And weexpect that more outside investors will come oncethese rules are approved.”

DICA, which operates under the Ministry ofNational Planning and Finance, is responsible fordrawing up many of the basic rules andregulations that will dictate how the investment

law functions. The ministry expects theseregulations will be completed in late February.

“We will be finishing at the end of this month,”the DICA official said. “Then we will announce therules to the public as soon as early March.”

The business community anticipates that the newregulations will include information on whichindustries to invest in, on the amount ofgovernment incentives, and on how thegovernment will provide oversight.

The government has accepted suggestions on thenew rules and regulations from the private sector,according to Dr. Maung Maung Lay, vicechairman of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI).

Source : Consult Myanmarhttps://consult-myanmar.com/2017/02/07/new-investment-law-rules-to-be-announced-in-march/

07 February 2017

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PwC | February 2017

NewspapersMyanmar Business Today

Bank to Support Gem Industry Expects to Launch This Year

The Asian Development Bank (ADB) andMyanmar have signed an advisory servicesagreement to improve transport through public-private partnerships.

ADB will provide strategic and transaction ad-visory services to support the Myanmar govern-ment’s bid to identify and develop transport pro-jects, the agency said.

“Improving Myanmar’s transport infrastructure iscritical to achieving inclusive growth in the coun-try”, said Ryuichi Kaga, head of ADB’s Office ofPPP.

“PPP is an important instrument to deliver in-frastructure, and ADB is looking forward to as-sisting the government in developing prioritytransport projects that could be structures on aPPP basis to mobilize private capital flow,” hesaid.

The Minister of Transport and Communication, UThant Sin Maung, said improving transport in-

frastructure is a top priority for the governmentas it is critical to improve access to markets, andto support basic services such as health andeducation.

Only 40 percent of Myanmar’s road network ispaved, according to ADB, and 20 millionpeoplehalf of the rural population – lack access toall-weather roads.

Weak inland waterways and river ports, highertransport cost and associated limited access tomarkets and services are considered a major bar-rier to lifting people out of poverty. Xinhua

Source : Myanmar Business Todayhttp://www.mmbiztoday.com/articles/bank-support-gem-industry-expects-launch-year

07 February 2017

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PwC | February 2017

NewspapersMyanmar Times

Easing Yangon’s traffic woes: by road and waterways

The Yangon Region Transport Authority (YRTA)will soon announce the water taxi tender winner,provide information of bus services at bus stopsand implement a new payment system for publictransport.his week, YRTA will name the winner chosen tobuild and run a water taxi system on the HlaingRiver and Nga Moe Yeik Creek, said U MaungAung, YRTA secretary, on February 6.

The YRTA started accepting tender applicationson November 21 until December 26. The month-long application period was intended to allowsufficient time for foreign and joint-venturecompanies to submit their applications. Theinvitation to tender was issued through a state-owned newspaper on November 16 and 17.

The network of navigable waterways in thecountry comprises river systems of theAyeyarwady, Chindwin, Sittoung, Thanlwin andmore, connecting the major cities and thusmaking it unique in Southeast Asia, according tothe Asian Development Bank (ADB).

As of 2001, according to the Economic and SocialCommission for Asia and the Pacific (UNESCAP),inland waterway transport (IWT) has the largestshare of cargo volume transported in Myanmar,47.5 percent, compared to 32.7pc for rail, and19.8pc for road. Yet, in spite of the manyadvantages of water transport, such as fuelefficiency and cost effectiveness, the industry isseverely under-developed due to the absence ofinfrastructural development and investment.

In their “Myanmar Transport Sector Policy Note”published in July 2016, ADB details howMyanmar’s transport sector has long sufferedwith transport demand exceeding resources andthe few investments made. Sixty percent ofhighways and most railway lines are in poorcondition. Spending on road and rail maintenancehas been two or three times below what isnecessary.Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/24872-easing-yangon-s-traffic-woes-by-road-and-waterways.html

08 February 2017

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PwC | February 2017

NewspapersMyanmar Times

25 Bagan hotels get green light but only for 15 years

Twenty-five unfinished hotels in Bagan whichhave been in limbo for over two years can now becompleted, but there are conditions attached, oneof which is that owners can only operate them for15 years.The period of 15 years is a penalty imposed on theowners for building the hotels withoutpermission, U Thein Lwin, deputy directorgeneral of the Department of Archaeology,National Museum and Library told The MyanmarTimes.

Another condition is that the hoteliers have todonate K50,000 for every room in their hotels forthe development of the Bagan ancientarchaeological zone.

The archaeology department had in 2014 banned42 hotel projects due to their locations within theancient city and temple complex. Out of the 42, 25were hotels that were almost 80 percentcomplete, while the other 17 properties had yet tobe built.

“The 25 hotels in limbo can resume construction

as soon as they receive the official letters from thearchaeology department. Also, we are planning toallow [the construction of] another 17 suspendedhotels if they are located away fromarchaeological zone,” U Win Myint Khaing, chairof the Hluttaw’s Religious, Social and CulturalAffairs Committee told The Myanmar Times.

“We can donate K50,000 per room if we cancontinue construction and operate the hotel. Butwe haven’t received approval from thearchaeology department, so how we can wecontinue construction?” said one of the hoteliersinvolved.Union Minister for Religious Affairs and CultureThura U Aung Ko was reported as saying lastweek that the owners would have to vacate theirproperties in the archaeological zone after 15years. The properties would then be turned intomuseums and libraries for the public.Source : Myanmar Timeshttp://www.mmtimes.com/index.php/national-news/mandalay-upper-myanmar/24869-green-light.html

08 February 2017

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PwC | February 2017

NewspapersMyanmar Times

Government cuts down foreign debt

Foreign debt was reduced to US$540 millionduring the first nine months of the NLD-ledgovernment, according to a Ministry of Planningand Finance presentation to the Hluttaw.

The status of Myanmar’s foreign debt as ofDecember 31, 2016 stood at US$8.989 billion,Union Minister U Kyaw Win told the PyidaungsuHluttaw on January 30. However, DeputyMinister for the Ministry of Planning and FinanceU Maung Maung Win said that total foreign debtup to March 31, 2016 was said to stand at $9.53billion when the new government took office.

Based on the respective figures submitted by theUnion minister and deputy minister within daysof each other, payable debt of $540 million wasreduced between March 31 and December 31,2016. In other words, previous debt amounting to$9,530,252,487.72 is now reduced to$8,989,879,540.32.

Respective departments which are on foreignloans have to allocate in their budgets as per the

schedule of repayments of principal and interestto be made depending on amount and terms andconditions of their loans, said U Maung MaungWin. The amount described in the budget forrepayment of debts will not be cut by Hluttaw, hecontinued. However, no separate explanation ofthe reduction of the total debt was given.

Although it was difficult to obtain foreign loansduring the reign of the military government,foreign funding began flowing into Myanmar afterthe 2010 election during the term of formerpresident U Thein Sein.

Foreign debt as of March 31, 2012 was K6335billion and increased to K7301 billion on March31, 2013, K9561 billion on March 31, 2014, K9545billion on March 31, 2015 and K12,246 billion onMarch 31, 2016 respectively.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/national-news/nay-pyi-taw/24876-government-cuts-down-foreign-debt.html

09 February 2017

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PwC | February 2017

NewspapersConsult Myanmar

Ministry to Develop Specialized Textile and Garment Zone

The union minister for industry has said that 127acres of land in No.1 Garment Factory located inShwe Taung, Bago Region, will be transformedinto a Specialized Textile and Garment Zone(STGZ).

Khin Maung Cho, said the ministry will invitepotential local and foreign investors to developthe zone to manufacture high quality products.

There will be two phases for the project. As part ofthe first phase, the ministry is working with aJapanese company to do a feasibility study. Thesecond phase will involve the development of 127acres of land into STGZ.

The union ministry expects that more jobs will becreated for local people living in Shaw Taungareas which could help develop the economy.

Lack of infrastructure such as a port and power,skilled labor and high rent fees for leasing landare the major challenges in the development ofMyanmar’s textile sector, Myint Soe, the

chairman for the Myanmar Garment Association,said. The sector still needs foreign investment, hesaid.

Source : Consult Myanmarhttps://consult-myanmar.com/2017/02/09/ministry-to-develop-specialized-textile-and-garment-zone/

09 February 2017

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PwC | February 2017

NewspapersMyanmar Times

MoUs inked to step up Thailand-Myanmar cross-border trade

Business communities and the governments ofThailand and Myanmar have agreed on bolsteringcross-border trade by improving existing channelsand developing new routes, and with an emphasison the exchange of data and a new cross-borderSEZ.The Thai delegation, led by Thailand’s DeputyPrime Minister Somkid Jatusripitak, met withState Counsellor Daw Aung San Suu Kyi onFebruary 2. Jatusripitak was also received byPresident Htin Kyaw at the Credential Hall of thePresident’s Office in Nay Pyi Taw. In a statement,the President’s Office said the two sides discussedsupporting small-and-medium-sized enterprises(SMEs), developing the border areas andpromoting investment in infrastructure.

Jatusripitak said that the route – which passesfrom India to Myanmar and then to Thailandbefore continuing to Laos and Vietnam – is themain channel connecting the two countries, andhence a pivotal route for the entire region. He saidThailand will take a proactive role in financing the

construction of under-developed routes located inThailand and Myanmar. The deputy PM addedthat a committee would be formed to support andmonitor the development of important routes.

While the Mae Sot-Myawaddy border crossing isvery important, there are other opportunities onthe horizon. If the relevant administrativeauthorities in Thailand and state or regional chiefministers in Myanmar agree, new gates along theborder can serve as cross-border trading routes.Trading along the border will then flourish. Withthe establishment of the ASEAN EconomicCommunity, fostering cross-border trade byintegrating the two countries will help penetratethe market, especially those of the CLMV(Cambodia, Laos, Myanmar, Vietnam) countries.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/24884-mous-inked-to-step-up-thailand-myanmar-cross-border-trade.html

09 February 2017

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PwC | February 2017

NewspapersMyanmar Times

Hluttaw calls for higher taxes as oil, gas revenues decline

As oil and gas revenues are expected to decline,the government is urged to increase taxes fromother industries in order to reach original taxtargets for the year, the Pyidaungsu HluttawPublic Accounts Joint Committee presented intheir review on February 8.Although other tax categories earned more thansix-month target, to meet the target for the wholeyear has become a challenge because of decreasedproduction in oil and gas and the declining worldoil and gas market conditions, the group said.

“Therefore, the committee thinks that it should beprepared to get more tax income from othersources to compensate the tax amount which canbe decreased in oil and gas sector,” said Daw ChoCho Win, committee member and Pyithu HluttawRepresentative from Mawlaik.

The committee did not specifically mention whichsectors should incur higher taxes, but suggestedthat taxes on beverages and wines could beincreased.

At present, tax is being collected from only 186excise license holders, while there are over40,000 licenses across the country.

According to the data of tax received during thefirst six months of the 2016-17 financial year, 16out of 20 taxes fulfilled and exceeded theirtargets.

The six-month tax target is K2142 billion, andtotal revenue received was K2548 billion.However, that total revenue constitutes only 39per cent of the total target of K6512 billion for theentire year.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/national-news/nay-pyi-taw/24877-hluttaw-calls-for-higher-taxes-as-oil-gas-revenues-decline.html

09 February 2017

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PwC | February 2017

NewspapersConsult Myanmar

Banks in Myanmar will adopt UnionPay Chip Card standard

The Myanmar Payment Union (MPU) andUnionPay International (UPI) have collaboratedto implement a common UnionPay chip cardstandard in the country. The UnionPay chip cardstandard complies with the global EMV chip cardstandard, and will be adopted by all banksoperating in Myanmar.

The UnionPay chip card standard emerged as thestandard of choice after stringent reviews andextensive consultations with Central Bank ofMyanmar, MPU and major financial institutions.Following this process, the current local chip cardstandard will be upgraded to the new UnionPaychip card standard which offers enhancedsecurity. In addition, Myanmar Cardholders canuse the locally-issued cards featuring the newUnionPay chip card standard anywhere in theworld, at locations that accept the EMV chip cardstandard.

This announcement follows the implementationof the UnionPay chip card standard in Thailandand Laos in recent years. In Thailand, all newlocally-issued debit cards will need to carry the

Thai Bank Chip Card Standard starting August2017, a chip card standard licensed by UPI andrun by Thai Banker Association. In Laos,UnionPay plays a pivotal role in providingsupport for the construction, operation andmaintenance of the local payment systems.

In 2016, UPI also signed a chip card standardlicensing cooperation agreement with seven othermember institutions of Asian Payment Network.With this collaboration, the major switchnetworks in Singapore, Thailand, South Korea,Malaysia, Indonesia and the Philippines willadopt UnionPay chip card standard in cardacceptance and card issuance.Acting Chairman of MPU, U Zaw Win, said, “TheUnionPay chip card standard brings the MyanmarPayments industry to the world stage as itcomplies with international EMV standard andsecurity.Source : Consult Myanmarhttps://consult-myanmar.com/2017/02/09/banks-in-myanmar-will-adopt-unionpay-chip-card-standard/

09 February 2017

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PwC | February 2017

NewspapersMyanmar Times

Diebold Nixdorf targets retail market

New York and Frankfurt-listed Diebold Nixdorf,an international financial services and technologycompany, opened its first Myanmar office inYangon on February 3 to establish its directpresence in the country. The company is hopingto launch its financial retail services in Myanmar.

“Diebold Nixdorf will expand payment servicesfor shopping malls and retail shops, in addition tobanks,” said Piers Leach, country manager forMyanmar.

Currently, Diebold Nixdorf provides local bankswith services in retail banking technologies,ATMs, and software support.

Local partners include Central Bank, UnitedAmara Bank, Yoma Bank, Tun Commercial Bankand more. Its local partners together take 70percent of Myanmar’s market share in terms ofcommercial banking customers.

“We can expand payment services by using cardsas well as mobile phones. There is a lot of

potential for growth of all kinds of technologies inMyanmar,” said Leach.

Partnering CB Bank, Diebold Nixdorf is alsoplanning to expand automated teller machine(ATM) networks in Myanmar. As of 2015, thetotal number of ATMs in the country wasestimated to be 1780.

Myanmar possesses huge growth potential in thebanking sector as its financial services expandbeyond the commercial capital to rural regionswhere it was estimated that more than 95 percentof the population remained unbanked. The techfirm will be targeting this vast untapped market.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/24912-diebold-nixdorf-targets-retail-market.html

10 February 2017

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PwC | February 2017

2. Weekly Investment News

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PwC | February 2017

Weekly Key Investment NewsHeadlines

Wyndham Hotel Group Launches First Project in Myanmar

Sakura Construction Firm Seeks Investors for $300 Million Yangon Condo Project

Myanmar Signs Agreement With ADB to Boost Transport Infrastructure

China calls for giant trade zone at Muse

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Loikaw General Hospital gets US$17m upgrade, courtesy Japan

PwC | February 2017

NewspapersEleven Myanmar

China calls for giant trade zone at Muse

China has urgently proposed a Shweli-Museborder economic cooperation zone to promotetrade, reported the Ministry of Commerce.

Construction plans would be made and aims andobjectives quickly established, it said.

The ministry had agreed to the plan, assistantsecretary Khin Maung Lwin of the Ministry ofCommerce said. “Both sides submitted proposalsto form organisations. The proposals have notbeen passed yet and the exact site has not beenchosen."

A financial transfer and regular trade systemwould have to be established, he said.

There are exports of US$2.5 billion and importsof US$1.2 billion at Muse until January 20 thisfiscal year, according to the Ministry ofCommerce.

There are also the Lwejel, Kanpaikte andChinshwehaw trade camps on the Chinese border.

Until January 20 this fiscal year, foreign tradewas US$21.6 billion, up US$44 million from lastyear.

Source : Eleven Myanmarhttp://www.elevenmyanmar.com/business/7716

04 February 2017

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PwC | February 2017

NewspapersMyanmar Business Today

Wyndham Hotel Group Launches First Project in Myanmar

One of the world’s largest hotel chains, the Wynd-ham Hotel Group, has launched its first project inMyanmar, a Tryp-branded hotel in Yangon’sMayangon Township.

The Yangon hotel is the first Tryp in SoutheastAsia and the second in the Asia-Pacific regionafter Brisbane, Australia.Other cities with Tryp hotels include New York,Paris, Berlin, Sao Paulo and Barcelona.

“Myanmar is quickly becoming a must-see des-tination for international travellers… thanks to aninflux of foreign investment and Yangon’sexpanded international airport,” said BarryRobinson, Wyndham’s president & managingdirector for Southeast Asia & Pacific Rim.

The trendy 60-room hotel is situated north ofInya Lake and within walking distance of KabarAye Pagoda.

“Tryp by Wyndham’s unique urban flair will helpvisitors uncover the side of Yangon not in

guidebooks, putting the city in a new light forvisitors who want to experience it like a local,”said Robinson.

Wyndham Hotel Group, which has some 8,000hotels worldwide, is poised for further expansionin Myanmar when its 260-room Wyndham GrandYangon Royal Lake is completed this year.

The hotel will be part of the $157 million mixed-use Kantharyar Centre, located south of Kandaw-gyi lake, which will include a residential building,serviced apartments, an office tower and ashopping centre.Developer Asia Myanmar Shining Star Company,a joint venture between Hong Kong Shining StarIndustrial and Asia Myanmar Shining StarConsortium Development, has pledged $70million for the hotel component of the project.Yangon accounts for 30 percent of the more than50,000 hotel rooms in Myanmar.Source : Myanmar Business Todayhttp://www.mmbiztoday.com/articles/wyndham-hotel-group-launches-first-project-myanmar

06 February 2017

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PwC | February 2017

NewspapersMyanmar Business Today

Sakura Construction Firm Seeks Investors for $300 Million Yangon Condo Project

Local firm Sakura Engineering and Constructionis looking to secure financing for a proposed $300million condo development in Yangon.

Sakura Engineering and Construction, a sub-sidiary of Sakura Trade Centre, hopes to build the22 tower condo project, known as Sakura Execu-tive City, on a 10-acre site along the Pazundaungcreek in South Okkalapa.

“We need $30 million worth of financing, about10 percent of the project, before we can secure therest of the funding from Global Treasure Bank(GTB),” the President of Sakura Trade Centre,Htay Aung, told Myanmar Business Today.

“We're looking for overseas financing, from Asianand European Banks,” added Htay Aung, who isalso a director and major shareholder of GTB.

After securing initial financing, the project will besubmitted with all requirements to the centralbank, he said.

Sakura Executive City was approved by the pre-vious government, but under the current govern-ment the project must be re-submitted for review.

“The new government wants to review everything:traffic assessments, sanitation, water treatment,there's a lot of new requirements,” he said.

“We are preparing for this and we will resubmitthe proposal in mid- March… We aim to beginclearing the sight for construction in mid-April.”

Construction on Sakura Executive City will takefive years and when complete will accommodateover 1,000 apartments, parking for 1,500 vehi-cles, swimming pools, a medical clinic and shop-ping centre.

Source : Myanmar Business Todayhttp://www.mmbiztoday.com/articles/sakura-construction-firm-seeks-investors-300-million-yangon-condo-project

06 February 2017

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PwC | February 2017

NewspapersConsult Myanmar

Myanmar Signs Agreement With ADB to Boost Transport Infrastructure

The Asian Development Bank (ADB) andMyanmar have signed an advisory servicesagreement to improve transport through public-private partnerships.

ADB will provide strategic and transaction ad-visory services to support the Myanmar govern-ment’s bid to identify and develop transport pro-jects, the agency said.

“Improving Myanmar’s transport infrastructure iscritical to achieving inclusive growth in the coun-try”, said Ryuichi Kaga, head of ADB’s Office ofPPP.

“PPP is an important instrument to deliver in-frastructure, and ADB is looking forward to as-sisting the government in developing prioritytransport projects that could be structures on aPPP basis to mobilize private capital flow,” hesaid.

The Minister of Transport and Communication, UThant Sin Maung, said improving transport in-

frastructure is a top priority for the governmentas it is critical to improve access to markets, andto support basic services such as health andeducation.

Only 40 percent of Myanmar’s road network ispaved, according to ADB, and 20 millionpeoplehalf of the rural population – lack access toall-weather roads.

Weak inland waterways and river ports, highertransport cost and associated limited access tomarkets and services are considered a major bar-rier to lifting people out of poverty. Xinhua

Source : Consult Myanmarhttps://consult-myanmar.com/2017/02/07/myanmar-signs-agreement-with-asian-development-bank-to-boost-transport-infrastructure/

07 February 2017

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PwC | February 2017

NewspapersMyanmar Times

Loikaw General Hospital gets US$17m upgrade, courtesy Japan

Loikaw General Hospital in Kayah State has beenupgraded with a US$17 million grant from theJapanese government, and now has two newbuildings as well as new medical equipment.

Yuichiro Funai, first secretary from the Japaneseembassy, said yesterday that the upgrade, whichtook two years, was completed in September lastyear.

He said the development assistance of K1.945billion (about US$17 million) was provided byJapan International Cooperation Agency tosupport the health sector in Myanmar.

Loikaw General Hospital is the main hospital inthe state and after many years of use hadinsufficient medical equipment and its buildingshad deteriorated.

As part of the upgrade to improve the healthstandards in Kayah State, two new buildings werebuilt and new medical equipment was installed,said Funai.

The hospital now has more than 10 departments,including an out-patient department.

The upgrading also included supply of electricaldevices and transmission equipment, waterpipeline system, medical gas system, ICT, air-conditioning, ambulance, surgical tools for theoperating theatre, room heaters for newborninfants, patient monitoring devices and othersurgical instruments.

The upgrading work started in March 2014. It washanded over to the respective authority yesterday.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/national-news/yangon/24880-loikaw-general-hospital-gets-us-17m-upgrade-courtesy-japan.html

09 February 2017

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PwC | February 2017

3. Weekly New Tenders

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PwC | February 2017

Tenders (Myanmar Government)List

Note: tenders information are collected from http://www.mmtimes.com/, http://consult-myanmar.com/, and http://www.myanmar-opportunities.org/mm/tenders http://www.buildersguide.com.mm/en/ .

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Expression of Interest for Developing Vehicle Registration by Radio Frequency Identification (RFID) System. Closing Date 10 March 2017

Invitation of Expression of Interest( EOI) for Cooperation in Plastic Factory (Kyaukse) under No. 2 Heavy Industrial Enterprise, Ministry of Industry

Invitation to tender for cooperation at No. 32 Heavy Industry (Kyangin) under No. 2 Heavy Industrial Enterprise, Ministry of Industry

PwC | February 2017

Tenders (Multilateral organizations)List

Note: tenders information are collected from https://wbgeconsult2.worldbank.org, www.devex.com, www.adb.org, https://www.ungm.org

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Rebidding for Project Evaluation of the Establishment of the Center for Diversity and National Harmony (CDNH), Closing date : 21-Feb-2016

Strengthening Project Preparation Capacity in Asia and the Pacific - Support for Ongoing Monitoring and Project Restructuring (Subproject 2), Closing Date : 14-Feb- 17

PwC | February 2017

4. MIC Permitted Projects

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PwC | February 2017

MIC Permitted Projects (Meeting 2, 2017)

No. Name of Company Type of Investment Form of Investment

1 G & U (Myanmar) Fashion Company Limited (China) Manufacturing of Garment on CMP Basis

Wholly Foreign Owned

2 Shyang Peng Cheng Company Limited (Samoa)Manufacturing of Varieties of Shoes on CMP Basis

Wholly Foreign Owned

3 Dongwon M House Company Limited (Korea) Manufacturing of Upper Part of Shoes on CMP Basis

Wholly Foreign Owned

4 CMI Engineering Company Limited (Singapore)Manufacturing and Marketing of Polybag and Related Products Such as Elastic Band

Joint Venture

5Jia Long Plastic Products (Myanmar) Company Limited (China)

Processing, Production and Sale of Parboiled Rice, High Quality White Rice and Rice Products with B.O.T system

Joint Venture

6 Myanmar National Tele & Communications Co., Ltd. Nationwide Telecommunications Network and Services

Joint Venture

7 Ga Mone Pwint Co., Ltd. Leasing of Shopping Mall, Office Towers and Hotel on BOP System

Myanmar Investment

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PwC | February 2017

5. Upcoming Events

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PwC | February 2017

Upcoming Events (January 2017 to November 2017) List

Date Location Name of Event Sector Price Focus Points

26-27 Jan 2017 YangonMyanmar Oil & Gas Summit

Oil & Gas 150Conference, Exhibition and Networking for Oil & Gas Industry

21-22 Feb 2017 YangonMobile Payments & E Commerce Emerging Markets

Mobile Banking 1999Conference will cover areas on latestDevelopments & Emerging opportunities for Mobile Banking and payments in Myanmar.

22-24 Feb 2017 YangonThird AAPG, EAGE, MGS, Myanmar Oil & Gas Conference

Oil & Gas 995Cover areas such as Oil & Gas exploration recent developments in Myanmar and bidding.

22-24 Feb 2017 Mandalay BuildTech Mandalay 2016Construction & Engineering

FreeIt is a market place for trade professionals and parties interested in construction and engineering businesses.

24-26 Feb 2017 YangonMyanmar Investment Conference

Agriculture,Energy, Healthcare, Real Estate

400It serves a great platform to initiate grow businesses in Myanmar.

24-26 Feb 2017 Yangon

Myanmar Infrastructure, Construction and Real Estate Investment Summit

Infrastructure, Real Estate

Free Exhibition

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PwC | February 2017

Upcoming Events (November 2016 to November 2017) List

Date Location Name of Event Sector Price Focus Points

24-26 Feb 2017 Yangon

Myanmar Property Investment Summit and Construction Expo

Real Estate,Finance

TBC

Showcases products of Property Investment, finance, banking and etc in Banking, Insurance & Finance, Building Construction and Real Estate industries.

29 March 2017 YangonMyanmar Supply Chain Summit

Supply Chain & Logistics

$200

Event to gain knowledge and effective techniques to grow your supply chain, manufacturing, logistics and distribution capabilities in Myanmar.

15 May 2017 YangonHospitality & TourismConference

Hospitality & Tourism

TBC

Discuss hospitality & tourism sector in Myanmar, and meet with investors and understand the investment and development opportunities in Myanmar.

30-31 May 2017 Yangon

Emerging Asia FinTech& Agent Banking Summit

Finance TBCDiscuss on the financial landscape transformation of Myanmar.

6-7 July 2017 Yangon ASEAN Ports & ShippingPorts & Shipping

1268Will covers areas of logistics & transportation.

18-19 Oct 2017 Yangon Oil & Gas Myanmar Oil & Gas Free

Opportunities and difficulties facing in Myanmar Oil & Gas Industry as it embarks on its exciting new phase of growth.

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© 2017 PricewaterhouseCoopers Myanmar Co Ltd. All rights reserved. In this

document, “PwC” refers to PricewaterhouseCoopers Myanmar Co Ltd, which is

part of the network of member firms of PricewaterhouseCoopers International

Limited, each of which is a separate and independent legal entity.

www.pwc.com/mm

PwC Myanmar Business Intelligence Publication

For further information please contact:

Jovi SeetSenior Executive Directorjovi.seet@sg.pwc.com

Brandon LyeDirectorbrandon.lye@sg.pwc.com

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