PwC MyanmarWeekly Business Intelligence

Issue 10704 May 2018

www.pwc.com/mm

PwC | May 2018

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PwC | May 2018

1. Weekly Key Financial & Business News

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PwC | May 2018

Weekly Key Financial & Business NewsHeadlines

Myanmar Timber Enterprise targets higher sales, commercial restructuring

Asia World port refurbished with new equipment

Coastal port agency computerises system

Japan mulls resuscitating failed Hanthawaddy airport proposal

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Myanmar’s electricity goals depend on ODA

PwC | May 2018

Weekly Key Financial & Business NewsHeadlines

Brokerage sets buy recommendation on Yoma Strategic

MNA, Mann Yadanarpon Airline to launch joint operations

Yangon government to demolish Myanmar Convention Centre and rebuild it by 2019

Yangon’s “new city” authority to publicise project documents in bid to improve transparency

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Fate of Yangon Water Bus depends on public

PwC | May 2018 6

Asia World port refurbished with new equipment

Asia World Port Terminal (AWPT) has invested in14 new pieces of port equipment for the long-term. These include nine SANY Rubber TyredGantry (RTG), one Mobile Harbour Crane (MHC)from Konecranes Gottwald, as well as two ReachStackers (RS) and two Empty Container Handlers(ECH) from SANY. This is the single largestinvestment in technology AWPT has made inrecent years.The new additions will be expected to willimprove AWPT’s overall operating capacity by33pc and containers can be stacked up to 7 highas opposed to 5 high.The terminal is developed, managed and operatedby Asia World Port Management Company(AWPM), which said that the conglomerate isconfident on the prospect of the port business andthat the recent total investments “signals itsstrong confidence” on the economy.The firm held a ceremony of the new equipmentfor the operation of Asia World Port Terminal(AWPT) on April 29.Yangon Region has several international ports,including AWPT, Hteetan Port Terminal,

Myanmar Industrial Port, Ahlone InternationalPort Terminal and Myanmar InternationalTerminal Thilawa (MITT).Last year, these ports combined handled over onemillion containers, over 90pc of the overallcapacity in Myanmar. AWPT said it managedalmost 40pc of country’s total in 2017 and theterminal is preparing for a higher demand in thenext few years.“We encourage new investments and newfacilities for the port. These investments allowtrade and logistics to become more efficient. Weendeavour to streamline the process step by step,and not only for ports,” U Thant Sin Maung, theUnion Minister of Transport and Communication,said during the official ceremony.

Source: Myanmar Timeshttps://www.mmtimes.com/news/asia-world-port-refurbished-new-equipment.html

NewspapersMyanmar Times

30 April 2018

PwC | May 2018 7

Myanmar Timber Enterprise targets higher sales, commercial restructuring

State-owned Myanmar Timber Enterprise (MTE)is targeting sales of 5,000 tonnes of teak and100,000 tonnes of hard wood during the six-month period between April and October thisyear. The sales are expected to generate K63billion in revenues, MTE deputy general managerU Khin Maung Kyi told The Myanmar Times.Sales will be conducted both locally andinternationally to cover MTE’s commitments tothe government, which includes 20 percent of itsrevenues as well as taxes of 25 pc. “Ourdepartment has to provide about K 15 billion.Then 25pc tax is about K 19 billion,” said U KhinMaung Kyi.“We also have to cover costs like salaries andother operational expenditure,” he added. Intotal, MTE’s costs have been estimated at aroundK86 billion.In Myanmar, state-owned enterprises (SOEs)must pay 20pc of their revenues to the State and a25pc tax on net income has to be paid to the State,too, said Daw Nwe Nwe Win, Director Generalfrom Budget Department.In 2017-18, MTE generated income of over K 100

billion from domestic sales and about $115 millionfrom foreign sales, he said.For profit modelAs MTE is among the SOEs that make the mostrevenue for the nation; discussions are underwayfor the organisation to operate under acommercial model instead. “Preparations arebeing carried out to restructure MTE and a lawwill also be drafted,” said U Khin Maung Kyi.One company which was successfully restructuredfrom SOE to a for-profit model and garneredsuccess is the Myanmar National Airway (MNA).“We’re expecting to go the MNA way. But, inorder to do this, a law must be promulgated. Alaw related to MTE has to be drafted,” he said.After the ministry approves of the departmentalrestructure, a law will be drafted and latersubmitted to parliament approval.

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-timber-enterprise-targets-higher-sales-commercial-restructuring.html

NewspapersMyanmar Times

01 May 2018

PwC | May 2018 8

Coastal port agency computerises system

Myanma Port Authority, under the Ministry ofTransport and Communications, launched its PortElectronic Data Interchange (Port EDI) system onApril 30. The adoption will computerise the entiresystem and enhance the efficiency of trade andlogistics in the coastal ports.The launch ceremony was held at Park RoyalHotel in Yangon on April 30. The implementationof the new system was supported by the Japanesegovernment and Japan International CooperationAgency (JICA) since 2015.Port EDI system consists of six system functionsand system infrastructure. The system functionsprovide the port clearance procedures system,berth allocation system, invoice issuing system,statistics management system, logisticsmonitoring system and terminal operationsystem.With the new systems, port-related procedures,collection of port charges, management of portstatistics and terminal operation managementhandled by paperwork and rudimentary way ofdata processing for the whole process can bereplaced and streamlined with technology. The

system provides smooth flows of operation withina short time and without unnecessary inputs. Forexample, documents do not have to be circulatedmanually.Maritime trade for Myanmar accounts for 85pc ofnational trade. Hence reforming port process isvital to modernising the country’s tradecompetitiveness.Communications and information regarding themaritime trade system need to be supported bymodern technology, U Thant Sin Maung, Ministerfor the Ministry of Transport andCommunications, said during the launch.The computerisation of the port system reducespaperwork and increases efficiency, Dr Myo NyeinAye, the project’s director, said. The governmentagency noted that currently, all the ports still haveto rely on paper documents for registration andrecording purposes.

Source: Myanmar Timeshttps://www.mmtimes.com/news/coastal-port-agency-computerises-system.html

NewspapersMyanmar Times

01 May 2018

PwC | May 2018 9

Japan mulls resuscitating failed Hanthawaddyairport proposal

Japan and Myanmar are in discussions aboutresuscitating the failed HanthawaddyInternational Airport project, according to thetransport minister.U Thant Sin Maung, Minister for the Ministry ofTransport and Communication, held a meetingwith Tsukasa Akimoto, Japan’s State Minister ofLand, Infrastructure, Transport and Tourism inPark Royal Hotel, Yangon, on April 30. Themeeting covered national infrastructure projectswhich Japan is interested in, including airports,ports and railway.Japan wants to undertake the airport projectspeedily but they are still in consideration, owingto the investment amount, U Thant Sin Maungsaid, proposing a Myanmar-Japan jointcommittee on this task. The project is estimatedto cost US$1.5 billion.Ichiro Maruyama, Japan’s ambassador, said allparties agreed to work together on the project andboth Nay Pyi Taw and Tokyo want the project togo ahead “as soon as possible”.Previous plans to develop the proposed airporthave fallen through. It was initially slated for

completion by 2018, which was then pushed backto 2020.The new airport was to have been built around 80kilometres north of Yangon, near Bago city, by2022, according to a framework agreement signedin January 2016 between a consortium andMyanmar’s Civil Aviation Department. Theconsortium includes Japan-based JGC Corp andSingapore’s Yongnam Holdings Ltd .On February 26, Yongnam announced in astatement that an agreement to design, build andmanage the planned airport has “expired”.“The FWA has not been renewed to-date ascertain issues remain unresolved,” the firm said.JGC owns a 55-percent stake in the consortiumwhile Yongnam has 25pc and Changi AirportPlanners and Engineers, a subsidiary of ChangiAirports International, has 20pc. Constructionhas not begun. The agreement expired in Januaryand neither side proposed an extension.Source: Myanmar Timeshttps://www.mmtimes.com/news/japan-mulls-resuscitating-failed-hanthawaddy-airport-proposal.html

NewspapersMyanmar Times

02 May 2018

PwC | May 2018 10

With 5.5 percent annual growth of gross domesticproduct, Myanmar was one of the fastest growingcountries in ASEAN during 2011-2015. Thegrowth of Myanmar’s economy is heavilyinfluenced by the government’s focus onpromoting special economic zones amonginvestors.Subject to the implementation of thisfocus, infrastructure development in energy isvitally important to make the country moreattractive to investors.Myanmar had an electrification rate of 33pc in2017 and requires more energy infrastructuredevelopment, which has been the backbone ofeconomic growth for the past five years.Myanmar’s National Electrification Plan aims toelectrify 100pc of households by 2030, withintervening targets of 47pc by 2020 and 76pc by2025. In the past seven years, the compoundedannual growth rate of Myanmar’s electricitydemand was 13.1pc, which is projected tocontinue at the same pace up to 2030, accordingto the government. More than 35 million peoplestill have no access to the power grid, and thegovernment is racing against time to achieve its

electrification target.Myanmar will require a total investment ofUS$5.8 billion (K7.74 trillion) for this project. Toreach the government electrification programme’s2020 target, about $650 million in loans and $24million in technical assistance will be requiredduring 2015-2019 for implementation of grid-connected power plants and mini-grid/off-gridestablishment. Indeed, the government seeks toget as much Official Development Assistance(ODA) as it can for energy development.Based on Myanmar’s Energy Master Plan, powerand rural electrification will be the government’spriorities in future ODA projects. Fortransmission infrastructure, the potentialinvestment in Myanmar will be around $2.4billion up to 2020 and an additional $3.4 billionup to 2030, most probably under ODA projects.

Source: Consult Myanmarhttps://consult-myanmar.com/2018/05/02/myanmars-electricity-goals-depend-on-oda/

NewspapersConsult Myanmar

Myanmar’s electricity goals depend on ODA

02 May 2018

PwC | May 2018 11

MNA, Mann Yadanarpon Airline to launch joint operations

Myanmar National Airlines (MNA) and MannYadanarpon Airlines have decided to launch ajoint operation for domestic flights.On April 30, the country’s national carrier MannYadanarpon Airlines signed an agreement tooperate under “Myanmar Sky Alliances”.Under this joint operation, the two airlines willoffer additional flights and streamline theschedules. The joint operation will start on May10, connecting 13 destinations. Each will supplytwo aircrafts.There are 11 airlines in Myanmar.Transport minister U Thant Sin Maung suggestedearlier that Myanmar has too many airlinescompeting for a relatively small market. He saidthe country should have four airlines, as otherASEAN countries only have four to six airlineseach. MNA is a state-owned carrier since 1948while Mann Yadanarpon Airlines wasincorporated as private company in 2013.

Source: Myanmar Timeshttps://www.mmtimes.com/news/mna-mann-yadanarpon-airline-launch-joint-operations.html

NewspapersMyanmar Times

02 May 2018

PwC | May 2018 12

Brokerage sets buy recommendation on Yoma Strategic

Even as some foreign investors stall plans toexpand in Myanmar, brokerage houses inSingapore are recommending that investorspurchase shares of Yoma Strategic Holdings, theSingapore-listed company run by Serge Pun.Yesterday, Singapore brokerage RHB told clientsin a report that Yoma Strategic’s recent slide inshare price could be a good opportunity to investin Myanmar for longer term gains. “While Yoma’srecent share price performance has been draggeddown by political uncertainties in Myanmar, westrongly believe that the stock offers a compellinginvestment case for investors who are willing totake a mid- to long-term view of Myanmar’sgrowth potential,” RHB analyst Mr VijayNatarajan wrote in his report.For retail investors, Yoma Strategic represents theonly equity play offering diversified exposure tosome of the fastest growing sectors in Myanmar.In the real estate sector, for example, thecompany is already developing two townshipprojects, namely StarCity and Pun Hlaing Estate,which together comprise a land bank that can lastanother 8-12 years.

At StarCity, Yoma has so for sold more than2,000 units in the development, which isexpected to yield a total of 10,000 homes in thefuture.The company is also developing a $400 millionmixed-development project – Yoma Central – inthe heart of downtown Yangon.Last month, units of Peninsula ResidencesYangon, a collection of 96 private luxury homeswithin Yoma Central, went on sale. The project,which will also include two Grade A office towersand a shopping mall, is being developed next toThe Peninsular Yangon hotel, which is now beingbuilt within the former colonial headquarters ofthe Myanma Railway Company.More recently, Yoma Strategic also announced itsforay into the financial services industry, with theacquisition of a 34pc stake in WaveMoney for$19.4 million in March.

Source: Myanmar Timeshttps://www.mmtimes.com/news/brokerage-sets-buy-recommendation-yoma-strategic.html

NewspapersMyanmar Times

03 May 2018

PwC | May 2018 13

Yangon government to demolish Myanmar Convention Centre and rebuild it by 2019

Yangon’s regional government will rebuildMyanmar Convention Centre located Mindhamaroad, in an effort to revamp the complex forinternational exhibitions and events.Current venues for international exhibitions andfairs are not ideal because of the lack of facilities,space and the difficulty in transport. The regionalgovernment plans to construct halls which areeasily accessible via land and water transport.“Now, we are trying to plan a hall near Nga MoeYeik creek that can be accessed through the riverand on road.“The regional government is exploring thepossibility of using old factor plants andtransforming them into exhibition venues, withcar parks and restaurants, among other facilities,”Chief Minister U Phyo Min Thein said.In addition, the Yangon City DevelopmentCommittee will demolish the MyanmarConvention Centre and rebuild a modern one. Thereconstruction is expected to finish next year.Last January, the international gems andjewellery fair was held in Lotte Hotel.“Our gems and jewellery are popular and adored

internationally, but there is no recognition ofYangon as a gems and jewellery market.“We have taken the first step to be an organiser ofgems and jewellery fair since hosting the fair inearly 2018,” the chief minister went on.“Regions such as Hong Kong do not producejewellery but host a lot of jewellery merchants.Every year, Myanmar merchants go to Hong Kongand buy diamonds and resell locally. Why doregions like Myanmar and Yangon, supported byports, cannot host a jewellery show like HongKong?” he said.U Phyo Min Thein explained that the governmentis trying to encourage and facilitate hostingsector-based fairs “each and every month” inorder to bolster the city’s economy. Internationalevents and exhibitions also help boost tourism.

Source: Myanmar Timeshttps://www.mmtimes.com/news/yangon-government-demolish-myanmar-convention-centre-and-rebuild-it-2019.html

NewspapersMyanmar Times

03 May 2018

PwC | May 2018 14

Yangon’s “new city” authority to publicise project documents in bid to improve transparency

The authority responsible for Yangon’s new citydevelopment has vowed to release the projectdocuments of selected tenders for public scrutiny,and allow third parties to challenge the awardedparty.On May 2, the government-owned New YangonDevelopment Company Limited (NYDC)announced that the NYDC signed a frameworkagreement with China CommunicationsConstruction Company (CCCC), to draft and mapout a programme proposal for infrastructureprojects related to Phase 1 of the new cityprogramme.The framework agreement, signed on April 30, isthe first stage of the NYDC Challenge Modelwhere a company which is qualified to undertakePhase 1 development is selected to submit a set ofPre-Project Documents (“PPD”). PPD includestechnical specifications, financial proposal andbusiness model for NYDC to evaluate.When the PPD are approved by NYDC, thedocuments will be made public to allow anyqualified party to challenge the agreement withbetter terms on the basis that it strictly adheres to

the terms and conditions of the tenderassessment criteria.As part of the NYDC Challenge, should a secondparty challenge with a lower bid, CCCC will beallowed to match the offer or forego. If CCCCchooses to forego, the second party will beawarded with the contract and will have theobligation to reimburse all costs incurred inconnection with the preparation and submissionof the PPD, Serge Pun, vice chair and CEO ofNYDC, said. Those costs will be agreed betweenNYDC and CCCC prior to the initiation of thetender process.“For a project of this scope and size, it isimportant to be able to work with companies thathave the expertise, experience and financialcapabilities to embark with us on this project.

Source: Myanmar Timeshttps://www.mmtimes.com/news/yangons-new-city-authority-publicise-project-documents-bid-improve-transparency.html

NewspapersMyanmar Times

03 May 2018

PwC | May 2018 15

Fate of Yangon Water Bus depends on public

The success of Yangon Water Bus solely rests onwhether the public uses it, said U Maung Aung,secretary of the Yangon Region TransportAuthority Group (YRTA).The first phase of the implementation of YangonWater Bus started on October 7. It is operated byTint Tint Myanmar Company following a three-month delay due to administrative obstacles. TheYangon Regional government hoped that thewater bus would reduce Yangon’s trafficcongestion.“We have been trying to implement watertransportation since the early period of the newgovernment. We decided to first operate in theYangon River after analysing the area’s needs. Butthe development of water buses does not solelyrest on our wishes,” said Yangon Chief Minister UPhyo Min Thein.Almost eight months after inauguration of thewater bus, it is operating normally andsatisfactorily, according to the company.“The Yangon Water Bus system is a new model oftransportation in Yangon. We believe thatcustomers will use it increasingly. Everybody is

interested in the water bus and it is part of theimage of Yangon,” said U Maung Aung.However, Yangon Water Bus has not yet had aclear impact on reducing traffic congestion. If theoperation develops and expands, it will have animpact, but it still depends on commuters’perception of the new mode of transportation, headded.At first, Tint Tint Myanmar intended to run 16ships, but for now, the company is only operatingseven locally-made ships and two catamarans atpeak hours.In the beginning, most passengers wereinterested in the water bus, assuming it wouldresult in faster commuting. However, only a fixednumber of regular customers are regularly takingit from Insein to Botahtaung jetty.

Source: Myanmar Timeshttps://www.mmtimes.com/news/fate-yangon-water-bus-depends-public.html

NewspapersMyanmar Times

04 May 2018

PwC | May 2018

2. Weekly Key Policy News

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PwC | May 2018

Weekly Key Policy NewsHeadlines

Draft bill combines corporate, personal insolvency in one legislation

Civil servant salaries upped by at least 10pc

Performance over two years by Ministry of Construction

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Are municipalities Myanmar’s champions of reform?

Ministries to select projects for Belt and Road economic corridors

PwC | May 2018 18

Draft bill combines corporate, personal insolvency in one legislation

Today is the registration deadline for theconsultation meeting on the Myanmar InsolvencyBillThe draft Insolvency Bill will replace three olderlaws to address corporate and personal insolvencyin one legislation and will carve out a separatecorporate rescue and insolvency regime forsmaller businesses.Today, April 30, is the registration deadline for apublication consultation meeting on the MyanmarInsolvency Bill.A consultation meeting on the Insolvency Billorganised by the Union Supreme Court with thesupport from the Asian Development Bank will beheld on May 9 in Melia Hotel, Yangon.Registration can be done on the website of theDirectorate of Investment and CompanyAdministration (DICA).The supreme court is currently undertaking a lawreform process to prepare a new Insolvency Bill.According to the court’s brief paper, the bill seeksto introduce an effective insolvency regime tofacilitate the timely, efficient and impartialresolution of insolvency. It will provide a

transparent procedure which contains clear riskallocation rules and provides certainty to themarket.An effective insolvency regime allows parties toanticipate how their legal rights will be affected inthe event when a party cannot meet theirpayment obligations. This allows creditors toassess their risks when considering lending andinvestments and allows both debtors andcreditors to determine and evaluate their optionswhen financial difficulties arise. In turn,transparency and certainty expand the availabilityof credit as creditors have confidence that theirrights with respect to the debtor and its assets willbe recognised and enforceable.

Source: Myanmar Timeshttps://www.mmtimes.com/news/draft-bill-combines-corporate-personal-insolvency-one-legislation.html

NewspapersMyanmar Times

30 April 2018

PwC | May 2018 19

Civil servant salaries upped by at least 10pc

Civil servants will see an increase in their salaries,according to a statement by the Ministry ofPlanning and Finance (MOPF) released on socialmedia yesterdayThe government is of the view that civil servants,including the military, have contributedsatisfactorily to ongoing reforms and will berewarded with better salaries. The decision wasmade on April 25 and announced yesterday.The salary scale for clerical staff and officers willbe adjusted to align with the new minimum dailywage K4,800 per worker.Plans have already been drawn up to increase thesalaries of all clerical staff by 20 percent and thatof all officers by 10pc, President U Win Myint,said during his Myanmar New Year speech onApril 17.Separate calculations and subsequentannouncements will be made on pensions andstipends.The announcement was confirmed by MOPFsecretary U Tun Tun Naing, who told TheMyanmar Times that salary adjustments willcommence in April.

But as it is already close to the end of the month,some departments have already paid theiremployees based on the older pay scale.Civil servants said they have not seen any changesto their salaries this month. U Zaw Cho Win,assistant director of the Naypyitaw DevelopmentCommittee, who is paid by cheque, said he is stillreceiving his original salary. “The increase may beadded in the salary for May,” he said.“We were not told if the new pay rates will applythis month and have already disbursed themonth’s payments based on the old rates,” saidone government officer who wishes to remainanonymous.While government officers are paid by cheque,non-officers, such as school teachers, are still paidin cash at the end of each month. The latterexpects to enjoy increases in salaries by thismonth.

Source: Myanmar Timeshttps://www.mmtimes.com/news/civil-servant-salaries-upped-least-10pc.html

NewspapersMyanmar Times

30 April 2018

PwC | May 2018 20

Performance over two years by Ministry of Construction

As for the Ministry of Construction, plans areunder way to design and estimate theconstruction and maintenance of roads, bridges,buildings and airfields in accordance with therules and regulations of the country.The Government is conducting reforms in allsectors for progress in all states and regions. Thisis a union where ethnic brethren live together inharmony through thick and thin. Basicinfrastructures like roads and bridges need to besound for reliable road transportation betweenstates and regions so that trade, contact andrelations are established enabling all ethnicbrethren to have developments in social,education, health and economic sectors. Throughthis, friendship and good relations among theethnic brethren will increase. In addition toimproving the road transportation andconstruction of buildings for safe dwelling, theMinistry of Construction is improving rural roadscontinuously.The ministry set its target of upgrading more than42,000 km distance of roads meeting the ASEANClass III standard by 2030 and upgrading all

bridges to RC/PC type.The ministry’s targets to be achieved by 2030 alsoinclude urban planning for more than 330 towns,construction of 1 million apartments andupgrading all roads in rural areas to all-weatherroads so that more than 90 percent of ruralpopulation can access to road facility.To achieve its targets, the ministry will worktogether with private companies under the PublicPrivate Partnership-PPP Program and also withdevelopment partners such as JICA, ADB, WB,KOICA and TICA. After finishing its currenthousing projects, roads and bridges projects, theministry will only supervise and maintain thefacilities. “We will not directly involve in theconstruction later, and we will form a regulatorybody to supervise and examine quality ofconstruction projects.

Source: The Global New Light of Myanmarhttp://www.globalnewlightofmyanmar.com/performance-two-years-ministry-construction/

NewspapersThe Global New Light of Myanmar

01 May 2018

PwC | May 2018 21

2017 was a difficult year for Myanmar. The rockypeace process and crisis in Rakhine havecomplicated the government’s effort to puttogether a reform agenda following five decadesof authoritarian rule. In such a challengingcontext, it is easy for bureaucratic inertia to set inand for people within government to becomemore risk averse.Yet there are pockets of reform that thedemocratic transition, however nascent, hasunleashed. Despite Myanmar’s highly centralizedgovernance system, its municipalities, known asDevelopment Affairs Organizations (DAOs), arefree to raise their own revenues and experimentin the way they provide urban services. Once partof the Ministry of Border Affairs, DAOs weredecentralized and came under the management ofthe state/region governments as specified underthe 2008 Constitution. This fact about the DAOsis not well known to the public, but having morecontrol over their finances and operations hasenabled committed and determined municipalofficials in some areas to begin pushing theboundaries of what can be done to improve how

their municipalities work.There are innovations emerging. Municipal staffin Ayeyarwaddy Region, Shan State, and KayinState, for example, are using mobile apptechnology to review and input tax and licensingdata in real time, producing more transparent taxbills that residents can trust. The data generatedis also being used to guide reform of municipaltaxes. Some municipalities have introduced watermeters to reduce waste and raise revenues.Others are using technology such as Facebookand Viber to improve communication with theirresidents and to better understand residents’needs.However, the unusual freedom DAOs enjoypresents its own set of challenges. Without aUnion-level line ministry, DAOs receive littleguidance and few opportunities to learn fromeach other.

Source: Consult Myanmarhttps://consult-myanmar.com/2018/05/02/are-municipalities-myanmars-champions-of-reform/

NewspapersConsult Myanmar

Are municipalities Myanmar’s champions of reform?

02 May 2018

PwC | May 2018 22

Ministries to select projects for Belt and Road economic corridors

Preparations are being made for Myanmar toselect its priorities among planned projects alongthe China-Myanmar economic corridorssupported by the Beijing-led Belt and RoadInitiative, U Than Aung Kyaw, deputy director-general of the Directorate of Investment andCompany Administration (DICA) told TheMyanmar Times.Traders from China will be arriving shortly tocarry out mutual negotiations. To prepare for theimplementation of the economic corridors,discussions were held among related ministries toselect the projects and prioritise some fordevelopment.“We’ve asked the respective ministries to tell uswhich projects they would like to cooperate alongthe corridor. We will focus on the negotiations ofthe projects first. The negotiation is about whichprojects our ministries will choose if the budgetwill only be given to one project when wenegotiate with China,” U Than Aung Kyawremarked.The projects will include basic infrastructure andland and maritime infrastructure, as well as

projects to develop sectors including agriculture,transport, manufacturing and healthcare.The project proposal will include the sectorsinvolved and whether it is government-led orprivate sector-led, he added. Sectors includeagriculture, human resources development,telecommunications and construction. Theministries will come up with a list of projects totalk with their counterparts in China.“We are making preparations to makepresentations of what we want to implement. Itwill happen in the near future. Their side willprepare as well. We will then need to negotiate,”he said. The country is connected to two of the sixeconomic corridors under the Belt and RoadInitiative (BRI), according to PwC GrowthMarkets Centre. This underlines its geopoliticaladvantage in facilitating the connectivity betweenChina and South Asia as well as in fosteringintegration within the ASEAN bloc.Source: Myanmar Timeshttps://www.mmtimes.com/news/ministries-select-projects-belt-and-road-economic-corridors.html

NewspapersMyanmar Times

04 May 2018

PwC | May 2018

3. Weekly Investment News

23

PwC | May 2018

Weekly Key Investment NewsHeadlines

Myanmar region woos French FDI

Yangon works with China to lay down development plan for new city project

Investment Application Guidebook to be launched

24

Mandalay investment commission approves 10 projects

Total FDI in Thilawa SEZ-A and B hit over $ 1.37 bln

PwC | May 2018 25

Myanmar’s underdeveloped Tanintharyi regionbordering Kanchanaburi province plans to attractEuropean investment mainly from Frenchcompanies in the months to come, according toPhyo Win Tun, planning and finance minister ofthe Tanintharyi region government.“At the regional government, we frequentlyreceive business delegations from Europe,including France, Italy, Czech as well as fromother countries such as Canada, Japan, China andThailand,” he said.Earlier this month, the authorities received atrade delegation of 12 French companies led byFrench Ambassador Olivier Richard. Thedelegation included senior executives fromfamous French companies with expertise inenergy, construction and fisheries sectors as wellas representatives from the France-MyanmarChamber of Commerce, the French DevelopmentAgency and the economic and trade sections ofthe Embassy.Phyo Win Tun said the regional authorities werepleased to have fruitful discussions with such bignames as Total, Artelia Group, Byma, Engie

Group, Schneider Electric, Suez Consulting andTractebel Group.According to the regional minister, the Frenchdelegation held several meetings withTanintharyi’s Chief Minister Lae Lae Maw, theDawei Special Economic Zone ManagementCommittee, regional office of the Directorate ofInvestment and Company Administration (DICA)and the Tanintharyi Region Chamber ofCommerce and Industry, to discuss aboutprospects for future investments by Frenchcompanies in the region.“It is the first official visit to our region by aFrench business delegation during the NationalLeague for Democracy government term.Obviously, we can see their enthusiasm to investhere and to trade with the local businesscommunity,” he said.

Source: Consult Myanmarhttps://consult-myanmar.com/2018/05/02/myanmar-region-woos-french-fdi/

NewspapersConsult Myanmar

Myanmar region woos French FDI

02 May 2018

PwC | May 2018 26

Yangon works with China to lay down development plan for new city project

New Yangon Development Company (NYDC) onMonday signed a framework agreement withChina Communications Construction Company(CCCC) under which the two parties will carry outthe necessary surveys and studies needed todevelop and implement a new city in Yangon.NYDC is backed by the Yangon RegionalGovernment, while CCCC is one of the largestinternational construction companies in theworld.Cooperation between both NYDC and CCCC isexpected to strengthen ties between Myanmarand China and contribute to national GDPthrough the creation of jobs, Yangon ChiefMinister U Phyo Min Thein said on Monday.At a press conference in Yangon last week, U PhyoMin Thein said investor interest in the NewYangon City project from China, South Korea andASEAN is on the rise. There have already beenproposals to construct two bridges, which willprovide access to the new city as well as link thecity to the main roads connecting to the rest ofYangon.Others have also proposed to construct new roads

in the city, and there has also been a request tolease over 2,000 acres of land for developmentwithin the new city, U Phyo Min Thein said.NYDC was launched on March 31 to develop theNew Yangon City project under a Public-PrivatePartnership model, with private businessescontributing equity investments. When complete,the new city is envisioned to rival the likes ofShenzhen, South Korea’s Incheon and Malaysia’sIskandar, according to NYDC.The total area of New Yangon City, encompassingPhase 1 and Phase 2, will cover 1,500 squarekilometers. Under Phase 1, NYDC will develop20,000 acres of land west of central Yangonacross from Kyeemyindaing into an urbanindustrial district. Meanwhile, Phase 2 willstretch across from Dala to the Gulf of Martaban.

Source: Myanmar Timeshttps://www.mmtimes.com/news/yangon-works-china-lay-down-development-plan-new-city-project.html

NewspapersMyanmar Times

02 May 2018

PwC | May 2018 27

Investment Application Guidebook to be launched

The Investment Application Guidebook, whichprovide easier access to valuable information oninvestment application procedures will belaunched at the Yangon Investment Forumdeveloped by the DICA with technical assistanceprovided by the German Cooperation throughDeutsche Gesellschaft für InternationaleZusammenarbeit GmbH GIZ (commissioned bythe German Federal Ministry for EconomicCooperation and Development), according to astatement.The Myanmar Investment Law (MIL), enacted in2016, has substantially clarified and simplifiedthe process for investment applications and offersa number of tax breaks, incentives, guarantees,rights and protections for business ventures.By creating a favorable business and investmentenvironment, Directorate of Investment andCompany Administration (DICA) and YangonRegion Investment Committee (YRIC) arecontinuously striving to promote private sectordevelopment in Myanmar and to boost domesticand foreign investment.To promote investment and provide useful

information to potential investors, YangonInvestment Forum 2018 will be held on 9th May,2018. Designed to highlight investmentopportunities, attract foreign direct investment,and mark the country’s return to internationalmarkets, this forum will be one of the majormilestone in the implementation of thegovernment’s business and investment reforms.The development of the Investment ApplicationGuidebook was supported by the GermanCooperation and implemented by GIZ incooperation with DICA and we will launched atthe Yangon Investment Forum in cooperationwith YRIC and other partners. The purpose of theInvestment Application Guidebook is to makeeasier for investors when investing in Myanmarby making the process more transparent, moreunderstandable and thus more cost and timeeffective.

Source: Mizzimahttp://www.mizzima.com/business-domestic/investment-application-guidebook-be-launched

NewspapersMizzima

03 May 2018

PwC | May 2018 28

Mandalay investment commission approves 10 projects

Mandalay Investment Commission has approvedfive domestic investments and five foreigninvestments, totalling 10 investments within ninemonths since it was established, according to theregional Directorate of Investment and CompanyAdministration.“After the new Investment Law was enacted, ithas become more convenient for investors. Theprocess didn’t take long either, compared to thepast. The regional investment commissionapproved 10 proposals in total - seven during lastyear and three in the six-month budget period,” UThaik Tun said. US$13.653 million for five foreigninvestments and K1,280 million for five domesticinvestments were approved and most are in theindustrial sector, but also include hospitality andagriculture sectors.The new Investment Law was implemented lastyear and regional investment commissions wereset up. Under the new legislation, trhe regionalcommissions can approve investments of up toUS$5 million or K6 billion.In Mandalay Region, the current investmentvolume is US$3244.995 million based on 60

permits and K4,900 billion from 148 permitsunder the Myanmar Investment Commission,Daw Nwe Ni Oo from the regional DICA said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/mandalay-investment-commission-approves-10-projects.html

NewspapersMyanmar Times

04 May 2018

PwC | May 2018 29

Total FDI in Thilawa SEZ-A and B hit over $ 1.37 bln

The total foreign investments in Thilawa SpecialEconomic Zone-A and Zone-B have reached overUS$ 1.374 billion, with Japan and Singaporetopping the list of investors, according to ThilawaSEZ Management Committee.Cho Cho Win, vice-chair of Thilawa SEZManagement Committee said: “Till date, permitshave been issued to 93 businesses for both zones.Currently, seven businesses hold the permit forZone-B.”“We collect the number of foreign countries whichinvest in the Thilawa SEZ. For instance, aJapanese company which was formed inSingapore will be registered as Singapore.Another mean we carry out the collection basedon the company’s mother country. A company setup in its mother country will be recorded asinvesting country. There will be 18 countriesincluding the investing country. Japan has led theinvestor list with 48 companies, followed byJapan, Singapore, Thailand and South Korea,”she added.According to the Special Economic Zone Law, thetotal FDI in the Thilawa SEZ hit more than US$

401 million in 2017-18 FY. According toDirectorate of Investment and CompanyAdministration, Investments by Japan andSingapore account for 61.55 per cent of the totalinvestments—36.84 per cent for Japan and 24.71per cent for Singapore.In 2017-18 FY, the investments of 11 businesses inthe industry sector in Thilawa SEZ projectamounted to over US$ 328 million, accountingfor 82 per cent of the total while the investmentsin good trading sector reached over US$ 57million which represents over 14 per cent. Inaddition, there were investment promotions inhousing, transport and service sectors.

Source: Eleven Myanmarhttp://www.elevenmyanmar.com/business/13865

NewspapersEleven Myanmar

05 May 2018

PwC | May 2018

3. Weekly New Tenders

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PwC | May 2018

Tenders (Myanmar Government)List

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

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Ministry of Industry: Request for expression of interest for No.21 Heavy Industry (Thaton) in Mon Region, Closing Date 31 May 2018

PwC | May 2018

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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No applicable Tenders announced for the week ending 4 May 2018

PwC | May 2018

4. MIC Permitted Projects

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PwC | May 2018

MIC Permitted Projects (Meeting 5, 2018)

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No. Name of Company Type of Investment Form of Investment

1 Diamond Dragon Co., Ltd Manufacturing and marketing of edible oilMyanmar Citizen Investment

2 Irrawaddy Fisheries Development Co., Ltd Breeding, manufacturing and selling of prawnsMyanmar Citizen Investment

3 Diamond Dragon Co., Ltd Manufacturing of plastic productsMyanmar Citizen Investment

4 Supreme Services Team Hotel Co., Ltd Hotel Services Myanmar Citizen Investment

5 Ayeyar Apex Construction Co., LtdConstruction operation and leasing of residence & service apartment

Myanmar CitizenInvestment

6 Global Mart Development Co., Ltd Hotel ServicesMyanmar CitizenInvestment

7 GPS Joint Venture Co., Ltd Processing & sales of lead concentrate Joint Venture

Source: DICA

PwC | May 2018

MIC Permitted Projects (Meeting 5, 2018) (cont’d)

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No. Name of Company Type of Investment Form of Investment

8 Brighter Energy Co., LtdImportation, storage, distribution and sales of LPG, gasoline and diesel

Myanmar Citizen Investment

9 Hlaing Inland Terminal and Logistics Co., LtdInland terminal logistics centre and bonded warehouse

Myanmar Citizen Investment

Source: DICA

PwC | May 2018

5. Upcoming Events

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PwC | May 2018

Upcoming Events (May 2018) List

Date Location Name of Event Sector Price Focus Points

09-11 May 2018 Yangon

Myanmar Medical Heathcare Exhibition & Conference

Healthcare Free

This event showcases products like Medical Devices, Medical Equipment, Pharmaceutical Products, Hospital & Clinical Equipment, Cosmetics, Skincare, Beauty Enhancement etc.

10-12 May 2018 Yangon Complast MyanmarIndustrial Engineering

Free

This event showcases products like Raw materials, polymers & resins, intermediates, blends & alloys, composites, converting equipment, testing equipment and much more.

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Note: Events information are collected from https://www.go-myanmar.com/events-and-conferences and https://10times.com/myanmar .

PwC | May 2018

Upcoming Events (June 2018) List

Date Location Name of Event Sector Price Focus Points

06-08 June 2018 YangonFood and Hotel Myanmar

Hospitality Free

“This event shows products like food and beverages, tea and coffee, wine and spirits, food servicing, food service equipment, kitchen equipment and supplies, hospitality equipment and supplies, spa services, lifestyle services, wellness services, hospitality services and technologies.”

16-17 June 2018 YangonInternational Education Fair Myanmar

Education Free

“This event showcases products like Universities and colleges, knowledge Economy, Primary and secondary schools, lifelong learning, vocational education, adult education, Informal education, Transfer of knowledge etc. in the Education & Training industry.”

26-27 June 2018 YangonMyanmar Banking and Finance

Finance Free

“This is the strategic conference where people, innovation technologies and best practices converge to define the future.”

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Note: Events information are collected from https://www.go-myanmar.com/events-and-conferences and https://10times.com/myanmar .

© 2018 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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