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PwC MyanmarWeekly Business Intelligence

Issue 19511 January 2020

www.pwc.com/mm

PwC | January 2020

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PwC | January 2020

1. Weekly Key Financial & Business News

3

PwC | January 2020

Weekly Key Financial & Business NewsHeadlines

Growth in Myanmar forecast to remain flat in 2020, says research company

More activity expected in Myanmar's wholesale and retail market this year

Traders see little change to fuel prices in the short term

Western Union Cuts Ties to Myanmar Military-Owned Bank

4

Stock trades on YSX rose in 2019

PwC | January 2020

Weekly Key Financial & Business NewsHeadlines

Chinese President's Upcoming Visit Seen as Bid to Gain Myanmar Leaders’ Commitment on BRI Projects

Land surveys conducted for the construction of Yangon SEZ

Myanmar, Thailand agree on cross border transfers

5

Two development zone projects under way in Kachin State

Nestlé hands DHL Supply Chain contract to manage entire warehousing operations in Myanmar

PwC | January 2020 6

Stock trades on YSX rose in 2019

A total of 2.4 million shares worth K13.39 billionwere traded on the Yangon Stock Exchange (YSX)in 2019, a significant increase compared to theprevious year, according to the annual reportreleased by the exchange.In 2019, the value of stocks traded on theexchange reached a peak of K2.47 billion inSeptember, whereas trading on the exchangeregistered an all-time low of K396 million inMarch.At present, shares of five listed companies — FirstMyanmar Investment (FMI), Myanmar ThilawaSEZ Holdings (MTSH), Myanmar Citizens Bank(MCB), First Private Bank (FPB), and TMHTelecom Public Co. Ltd — are being traded on thestock exchange.In January, 2019, 89,576 shares worth K526million were traded on the exchange. The tradingvalue slid to K409 million and K396 million inFebruary and March as share prices fell.In April, 102,682 shares worth K506 million weretraded on the YSX. Starting from May, the valueof shares traded crossed K1 billion. It touched anew peak of K1.4 billion, with 275,325 shares

traded, in May; K1.32 billion, with 233,994 sharestraded, in June; K1.22 billion, with 256,241 sharestraded, in July, and K1.9 billion, with 322,176shares traded, in August. The value of sharestraded on the YSX reached a record-high inSeptember and then plunged by nearly 50 percent in October.The value of shares traded on the Yangon StockExchange (YSX) declined sharply to K992.69million and K794 million in November andDecember.The price per share of FMI increased fromK10,000 on 2 January, 2019 to K11,000 on 30December, 2019. The share price of MTSHtouched a high of K3,850 on 30 Decembercompared with K3,000 on 2 January.MCB’s stock price also rose from K7,400 on 2January, 2019 to K8,200 on 30 December, 2019.Meanwhile, the prices of stocks remainedunchanged at K23,000 at the opening and closingtime last year.Source: The Global New Light of Myanmarhttps://www.globalnewlightofmyanmar.com/stock-trades-on-ysx-rose-in-2019/

NewspapersThe Global New Light of Myanmar

06 Jan 2020


More activity expected in Myanmar's wholesale and retail market this year

Industry watchers are expecting the widerpresence of foreign supermarkets and retail mallsin Myanmar in the coming year.“The market has been developing quickly. So, Ithink that within the next one or two years thewholesale and retail market landscape willexpand,’’ said U Myo Htwe, Managing Director ofPro 1 Global Company, a retail joint venturebetween local and Thai investors.“Most foreign investors are focusing on thewholesale area because this takes less time andrisk compared to retail,” said U Myo Htwe.But this will quickly change. “Over the next twoyears, we will see much more activity from theretail players in the domestic market, after theforeign investors have studied the conditions andtrends,” U Myo Min Aung, a local businessmen inthe retail and wholesale industry.Also, in the retail space, foreign businesses andjoint ventures are not allowed to operate mini-markets, convenience stores and any retaildistribution where the floor area is smaller than929 square metres.Modern retail stores currently account for

approximately 10 percent of the country’s retailmarket and this is expected to increase to a 25pcby 2020, according to EuroCham’s ConsumerGoods Guide 2020.Supermarkets and convenience stores areincreasingly being established in the larger citiesof Myanmar to cater to changing consumerbehaviours and preferences. Out of approximately250,000 retail outlets in Myanmar, grocery,convenience, fabric, pharmacy and fashion are thetop five outlet categories, together accounting for45pc of total retail stores.The guide also revealed that both local andinternational retailers are optimistic about futuregrowth potential.The Ministry of Commerce permitted 34 foreignretail and wholesale businesses to operate in thedomestic market between July 2018 andDecember 2019.

Source: Myanmar Timeshttps://www.mmtimes.com/news/more-activity-expected-myanmars-wholesale-and-retail-market-year.html

NewspapersMyanmar Times

07 Jan 2020


Growth in Myanmar forecast to remain flat in 2020, says research company

The Myanmar economy is forecast to remain at6.5 percent in fiscal 2019-20, with four factorsforeseen to limit the country’s potential,according to a recent analysis by a Britishresearch firm.In a report released last week, Fitch SolutionsMacro Research, a unit of the UK Fitch Group,said “poor credit flow to small and mediumenterprises (SMEs), a poor business environment,high inflation, and political uncertainty” couldstrangle Myanmar’s growth potential in the nearterm.The growth forecast is the lowest so far. TheASEAN+3 Macroeconomic Research Officeexpects the Myanmar economy to expand by 7.1pcin fiscal 2019-20, while the World Bank isexpecting growth at 6.6 pc.In Myanmar, banks generally avoid providingloans to riskier SMEs, such as those withoutcollateral or a credit record, even though theCentral Bank last year permitted unsecuredlending at 16pc interest rate. This perpetuates a“vicious cycle” where SMEs fail to obtain thenecessary financing to fuel growth, said Fitch.

As SMEs account for a third of Myanmar’s GDP,low credit flow to SMEs not only hinders theability for them to finance their growth. It alsoimpacts the overall growth potential of thecountry.Despite a slight improvement of six places to165thon the World Bank’s Ease of Doing Business indexfor 2020, Fitch cautioned that the poor businessenvironment in Myanmar compared to Vietnamwould further deter foreign direct investments(FDI) and “limit opportunities for supply chainrelocation to Myanmar” in light of the tradetension between the US and China.Last year, FDI fell short of the target by 30pc.The vagueness of a new trade bill to be enactedalso adds to the uncertainties and worries offoreign businesses.

Source: Myanmar Timeshttps://www.mmtimes.com/news/growth-myanmar-forecast-remain-flat-2020-says-research-company.html


08 Jan 2020


Traders see little change to fuel prices in the short term

Oil prices have spiked by more than 6 percentsince the US killed top Iranian militarycommander Qasem Soleimani in a drone strikeordered by President Donald Trump on January3.Prices in Asia climbed to almost US$65 a barrelfor the first time in four months on Monday amidfears that the US airstrike could trigger retaliationfrom the Iranians and disrupt global energysupplies. Iran is one of the largest oil producers inthe world.While higher prices have not yet materialised inMyanmar, the mounting tension between the USand Iran is a cause for concern for local fuelimporters and distributors. Myanmar importsmost of its fuel and petrol from Singapore.Since Monday, the price Ron 95 petrol inSingapore rose to $76.14 per barrel, up 3.3pcfrom the day before. In Myanmar, the local retailprice of per litre for Ron 95 petrol was K1000 onTuesday, up from K990 on January 2.“But Asian oil prices have since dropped so thelocal wholesale price of fuel is likely to fall back.In a short period, local fuel price seems to remain

at current prices,” U Sai Won Hlaing, a member ofMyanmar Petroleum Trade Association, toldMyanmar Times.“All of us in oil business are interested in thechanges of global politics. Although the local fuelprice is a bit high, it should stay in this range overthe short term,” said U Tin Aung Kyaw, amanager from the fuel import and distributionbusiness.So far this year, fuel prices in Yangon were theirhighest on January 7 at K905 per litre for 92 Ron,K1,000 for 95 Ron, K985 for 500ppm diesel andK1,000 for 50ppm diesel.On January 2, prices stood at K 895 per liter for92 Ron, K990 for 95 Ron, K975 for 500ppmdiesel and K 990 for 50ppm diesel.With prices beginning to taper for now, localwholesale prices are also expected to soften in thecoming week, barring retaliation from Iran,traders and distributors said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/traders-see-little-change-fuel-prices-short-term.html


08 Jan 2020


Western Union Cuts Ties to Myanmar Military-Owned Bank

YANGON—Western Union, a US-based globalfinancial transfer service, has cut ties withMyanmar’s military-owned Myawaddy Bank afterhuman rights organizations called on thecompany to sever its links in light of accusationsthat the military is responsible for genocide, warcrimes and crimes against humanity.Burma Campaign for UK (BCUK) said on Tuesdaythat it received the notification from WesternUnion that the company has stopped usingmilitary-owned Myawaddy Bank as one of itsagents in Myanmar after reviewing relevantregulatory requirements and Western Union’sown policies.Western Union said that in Myanmar and othercountries in conflict, it plays a critical role inconnecting people, whether families sendingmoney to loved ones in order to meet basic needslike healthcare and food, or humanitarian aidorganizations sending funds to support their workon the ground. Providing these services requiresthe use of local agents remunerated by acommission payment, according to BCUK.“Western Union conducts agent due diligence and

oversight through periodic reviews to determinewhether these [local] agents satisfy relevantregulatory requirements and Western Unionpolicies,” the financial transfer service providersaid.It said that as a result of such a review, WesternUnion has ended its contract with MyawaddyBank, “effective immediately,” according toBCUK.Myawaddy Bank is a subsidiary of a militarybusiness conglomerate, Union of MyanmarEconomic Holdings Ltd (MEHL). BCUK said thatprofits from Myawaddy bank benefit theMyanmar military.In October, 33 human rights organizations sentan open letter to Western Union presidentHikmet Ersek calling on him to end thecompany’s relationship with Myanmar’s military,known as the Tatmadaw.

Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/western-union-cuts-ties-myanmar-military-owned-bank.html

NewspapersThe Irrawaddy

08 Jan 2020


Nestlé hands DHL Supply Chain contract to manage entire warehousing operations in Myanmar

YANGON, MYANMAR –Nestlé, the world’slargest food company has appointed DHL SupplyChain (DHL), the global market leader forcontract logistics solutions, to managewarehousing operations for its food products inMyanmar, which include household brands suchas Coffee mate®, MILO® and Nescafé®.Total operations for Nestlé products spans 4,000sqm, which accounts for more than 60% of totalwarehouse space in DHL’s first multi-userwarehouse in the country. The recently-unveiledwarehouse is conveniently located next to Nestlé’snew manufacturing facility, situated in DagonSeikkan Industrial Zone in Yangon, the country’strade and commerce epicentre.Kevin Burrell, CEO DHL Supply Chain, ThailandCluster (Thailand, Vietnam, Myanmar andCambodia) said, “Myanmar is an exciting marketto be in, and we have been very successful inensuring that our capabilities are customized tomeet our customers’ needs, enabling them togrow their business footprint here. As the countryshapes up to be a bigger player in intra-regionaltrade, and with the local economy projected to

grow by more than 6 per cent next year, we canexpect more investment from variousinternational players, who will need our expertlocal knowledge and executional excellence tooptimize their supply chain.”“We are committed to continue investing inMyanmar’s food and beverage industry, in orderto deliver nutritious, high quality and safeproducts to local consumers under great brandssuch as Nescafe, Milo, Bear Brand, and Cerelac.With a wide portfolio of food & beverage productsfor different consumer segments, it is a toppriority that we partner a logistics provider whonot only understands our strict adherence to thehighest standard of food safety and storage, butcan also deploy an array of strategic warehousingoptions to ensure our products are kept in thebest conditions, in order to deliver a seamlesscustomer experience,” said Victor Seah, Chairmanand CEO Nestlé Indochina.Source: Business Insiderhttps://www.businessinsider.my/nestle-hands-dhl-supply-chain-contract-to-manage-entire-warehousing-operations-in-myanmar/

NewspapersBusiness Insider

09 Jan 2020


Land surveys conducted for the construction of Yangon SEZ

YANGON- Land surveys have been conducted forthe construction of Yangon Special EconomicZone (SEZ) in Dala, Kawthmu and KyunchangoneTownships, says Phyo Min Thein, Yangon RegionChief Minister.The chief minister attended the openingceremony of 33/11KV and (5)MVA sub-powerstation situated between Kayinchaung andKamarkaloke villages in Kyauktan Township,Yangon Region on January 6th and he deliveredthe above speech.“We had carried out the land surveys forconstruction of Yangon SEZ in Dala, Kawthmuand Twanty Townships. Moreover, we plan toestablish a new International Yangon Jetty inKawthmu Township to transfer the current jettiesin Yangon to the mouth of the river,” said PhyoMin Thein.He also said that the Yangon Region Parliamenthad approved the land compensation programsfor new Yangon City Project. So, the programswere carried out. Moreover, he submitted aproposal to invite the tender for the constructionof a bridge from Bargaryar to the Union Economic

Committee. If the committee would agree, theywould be offering the tender.He added that they were striving to seek incomegeneration for Yangon from the western part ofthe Yangon River. When looking at Yangon cityfrom an aerial view, many fields were in thewestern part of the Yangon River. But the fieldswere located in seawater areas which meansagriculture wasn’t an option. If the industrializedeconomic development sector in the western partof the Yangon River would be reformed, theincome of Yangon Region will increase.“When we undertook our duties, we started thedevelopment tasks by spending about Ks440billion. Now, Yangon Region is using about Ks780 billion. We only used 15 percent levy on thetax and the remaining 85 percent must beentrusted to the Union,” said Phyo Min Thein.At present, the income of the Yangon Regionincreases.

Source: Eleven Myanmarhttps://elevenmyanmar.com/news/land-surveys-conducted-for-the-construction-of-yangon-sez

NewspapersEleven Myanmar

09 Jan 2020


Chinese President's Upcoming Visit Seen as Bid to Gain Myanmar Leaders’ Commitment on BRI Projects

YANGON—Chinese President Xi Jinping isreportedly planning to visit Myanmar late nextweek, in a trip many believe is aimed at sending asignal regarding the country’s importance toChina’s strategic ambitions in the Indian Ocean,while shoring up support for Xi’s ambitious Beltand Road Initiative (BRI) among leaders inMyanmar, which is slated to host some of thescheme’s key projects.If the trip goes ahead, Xi would be the firstChinese president to visit China’s southernneighbor in nearly two decades.With China and Myanmar due to celebrate 70years of diplomatic relations this year,preparations for Xi’s trip have been under way forsome time. Chinese Foreign Minister Wang Yi andMyanmar State Counselor Daw Aung San Suu Kyimet in early December in Naypyitaw to discusspreparations.According to government sources, Xi is expectedto visit Naypyitaw, the capital of Myanmar, onJan. 17-18. During his trip, the two sides areexpected to sign dozens of agreements coveringthe construction of the Kyaukphyu Special

Economic Zone (SEZ) and border economiccooperation zones, road upgrade projects,promotion of trade relations, and social andeconomic development assistance, according toMyanmar government sources.On Wednesday, Union Minister for Commerce UThan Myint told the media that Xi will visitMyanmar soon, saying that during his trip anagreement would be signed between the twocountries in which China would ease restrictionson imports of products from Myanmar.“It will enhance trade relations with China,” hesaid.It will be Xi’s second visit to Myanmar. He visitedthe country in 2009 as vice president. During thattrip, China and Myanmar signed 16memorandums of understanding (MOUs) ontechnical cooperation, the implementation ofhydropower projects, the China-Myanmar Oil andGas twin pipeline project…Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/chinese-presidents-upcoming-visit-seen-bid-gain-myanmar-leaders-commitment-bri-projects.html


09 Jan 2020


Myanmar, Thailand agree on cross border transfers

Two private banks, Ayeyarwady Bank (AYA Bank)in Myanmar and Thailand’s Siam CommercialBank (SCB) have signed a memorandum ofunderstanding (MOU) to collaborate in thedevelopment of cross border payments and fundtransfer services between the two countries.This cements an October 2019 agreementbetween the Central Bank of Myanmar and theBank of Thailand to promote the official use of theMyanmar kyat and Thai baht when trading at theborder.The Central Banks also inked a second MOU topromote financial innovation and services forpayments through collaboration between the twocountries.“We hope to start the work within the year,” UHpone Thet Oo, vice president of FinancialInstitutions and Corporate Banking for AYABank, told Myanmar Times.Even though trading at the Thai-Myanmar borderis already conducted in kyat and baht, paymentsthat are processed through the banks areconducted in US dollars, resulting in leakagesthrough foreign exchange losses.

“Through this MOU, we can bring more of thepayments through the formal channel and makethe process more convenient,’’ Mr KamalkantAgarwal, Advisor to the CEO, SCB Bank.This will also encourage remittances throughproper channels. Even though there largenumbers of Myanmar migrant workers inThailand, international money transfers takeplace via the unofficial Hundi system and there isno guarantee the funds will be safe.Of the four countries that share borders withMyanmar, Thailand is the second largest tradingpartner.Trade volumes at the Thai-Myanmar border,including Tachileik, Myawaddy, Kawthoung,Myeik, Htee Khee and Maw Taung during fiscal2018-19 amounted to US$3.8 billion, according togovernment data.

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-thailand-agree-cross-border-transfers.html


09 Jan 2020


Two development zone projects under way in Kachin State

As part of China’s Belt and Road Initiative (BRI)in Kachin State, Myanmar plans to establishMyitkyina Economic Zone and Kanpiketi BorderDevelopment Zone, according to the MyanmarInvestment Commission.At a ceremony to explain the facts about theestablishment of two zones in Myitkyina, UnionMinister for Commerce Dr. Than Myint saidMyanmar will set up the economic developmentzone in Myitkyina. The zone will cover theproduction of value-added products foragriculture and breeding sector and cargotransport.Myanmar borders with China. Trade betweenMyanmar and China is the highest. Thedevelopment of Kanpiketi border area can helppromote trade, cooperation and investmentsbetween both countries, resulting in moreemployment opportunities for locals andeconomic development. We invite capitalinvestments and technology as Kachin is rich innatural resources and abundant with fellow andvacant lands, the Union Minister added.Foreign companies which will implement the

economic zones can do it in accordance with laws,bylaws and rules and regulations. Thegovernment will give full protection to them.Thanks to land resources, fair weather conditionsand potential market in Kachin State, theeconomic zone will be set up in Myitkyina.The 4,751-acre land chosen for the construction ofMyitkyina Economic Development Zone is locatedin Palana village-tract in Nankyin village-tract inMyitkyina Township. The project is estimated tocost Ks 372 billion (273.44 million US dollars).The project will be developed by Joint VentureCompany (a Chinese company and Kachin StateEconomic Development Public Co., Ltd.)

Source: Eleven Myanmarhttps://elevenmyanmar.com/news/two-development-zone-projects-under-way-in-kachin-state

NewspapersEleven Myanmar

11 Jan 2020

PwC | January 2020

2. Weekly Key Policy News

16

PwC | January 2020

Weekly Key Policy NewsHeadlines

Govt officials allowed to import vehicles on favourable terms

New law in the works to help set up Myanmar credit market

Country’s competition commission begins to find its footing

17

Bangladesh Border Chief Demands Rohingya Return to Myanmar

At Myanmar Peace Talks, State Counselor Urges All Parties to Put Country First


Govt officials allowed to import vehicles on favourable terms

The Ministry of Commerce (MOC) announced onJanuary 2 that it will grant car importing permitsto government officials and public servicepersonnel, said U Aung Htoo, deputy commerceminister.The car models available for import will bedefined by the ministry on a yearly basis and canbe imported directly without going through ashowroom or car dealership.Senior officials such as director generals will beamong the first to qualify for the import permits,followed by deputy director generals and officialswith a minimum of 25 years of experience whohave been given a ‘Good Civil Service Award’.Interested buyers must get a recommendationletter from their respective ministries beforeapplying for an import permit from the MOC.There is so far no limit to the number of vehiclesbuyers are permitted to import. However, higherlevel officials will be able to import moreexpensive cars.Furthermore, only left-hand drive carsmanufactured between 2018 and 2020 will beallowed.

Buying can begin after the list of officials whoqualify for an import permit is complete and theimported vehicles can be sold after a year, said UAung Htoo.The imported vehicles will be exempted fromcustom duties, income tax and road tax butbuyers will still have to pay a special goods andcommercial tax. The import price is inclusive ofCost, Insurance and Freight (CIF).U Aung Htoo said the government will connectwith local car showrooms to discuss details onwhether buyers will import directly from abroador buy from local showrooms. No information wasgiven on whether the cars are restricted to officialuse.The government has also approached local banksto arrange payment options for buyers. “Thosewho cannot pay upfront with cash can ask thebanks for hire purchase and other paymentarrangements.

Source: Myanmar Timeshttps://www.mmtimes.com/news/govt-officials-allowed-import-vehicles-favourable-terms.html


06 Jan 2020


New law in the works to help set up Myanmar credit market

The Ministry of Planning, Finance and Industry isdrafting a Secured Transactions Law withassistance from the International FinanceCorporation, U Htun Zaw, Deputy DirectorGeneral of the Financial Regulatory Department,said.The aim of the legislation is to facilitate theestablishing of a modern and formal credit marketthrough which borrowers can take loans using abroad range of moveable assets as collateral andmicro, small and medium-sized enterprises havebetter access to financing.The new law also provides for a formal registry formoveable collateral and recourse in the event ofdisputes regarding the rights to collateral.The move was driven by government efforts tomake getting credit, one of the factors consideredin the World Bank’s ease of doing business index,easier. In its 2019 report, the World Bank notedthat Myanmar needs to improve access to creditfor businesses, as the number of loans madeduring the year had declined. One of the reasonsis banks are unwilling to lend to borrowerswithout immoveable collateral like land and

property.Work on the new Secured Transactions Lawbegan last year, U Htun Zaw said. In December2018, Myanmar Credit Bureau inked anagreement with US-based Equifax New ZealandServices and Solutions Ltd to establish a creditbureau to help banks make better decisions whenlending to borrowers and reduce their risks.

Source: Myanmar Timeshttps://www.mmtimes.com/news/new-law-works-help-set-myanmar-credit-market.html


07 Jan 2020


Country’s competition commission begins to find its footing

The Myanmar Competition Commission will focuson looking into allegations of unfair competitionin the market following formal reports ofcomplaints, says U Ko Ko Lay, the secretary of thecommission.Myanmar’s Competition Law was enacted in 2015and the Myanmar Competition Commission wasformed in October 2018, to take responsibility forenforcing the law.The commission’s role involves recording formalcomplaints of unfair completion and investigatingof those reports.“Since it is just a little over a year old and we don’thave quite enough staff yet, the commission hasbeen focusing more on the recording of formalcomplaints of unfair competition in country. Wehave requested the government for more staff sowe can devote more manpower to investigatingthe complaints received,” U Ko Ko Lay said.He added that the commission has so far received10 formal complaints since its founding. Of the 10cases, four involving the selling of medicines,education, construction, and transportation wereinvestigated and resolved.

Enforcing competition laws is expected to helpencourage spending and spur more developmentin the country’s economy. The aim of the law iscreate a level playing field for companies and faircompetition within industries, thus enablingbusiness to innovate and grow and thecommission is expected to support the goals ofthe law.Over the course of last year, the commission alsomet with Grab Taxi Myanmar to discuss itsoperations in the country, U Ko Ko Lay said.While no formal complaints were lodged againstGrab Taxi in Myanmar, the commission met withthe company to discuss its dominance of the ride-hailing market and measures it could take toavoid stifling competition in the market, headded.“The meeting was just for an informal discussion.We are merely keeping abreast of the changingtaxi and ride-hailing market in Myanmar.Source: Myanmar Timeshttps://www.mmtimes.com/news/countrys-competition-commission-begins-find-its-footing.html


08 Jan 2020


Bangladesh Border Chief Demands Rohingya Return to Myanmar

Dhaka – The Border Guard Bangladesh (BGB)chief, Major General Shafeenul Islam, has heldtalks with his counterparts from Myanmar sayingthe ongoing presence of Rohingya refugees willdisturb security on both sides of the border.The BGB director-general said: “There are 1.1million refugees from Myanmar. It is fertileground for terrorists from the Myanmar side. Thedrug trade grows and may fund groups insideMyanmar. Groups can recruit members there. Wehighlighted those issues. The sooner they go backthe better or they will continue to affect securityalong the border.”The director-general held a joint press conferencewith Myanmar’s Police Brigadier General MyoeThan, who led an eight-member delegation to theborder conference.The BGB chief said there was a proposal to erect aborder fence with a priority on vulnerable areaswhere “yaba” or methamphetamines were beingsmuggled.A joint statement said the BGB chief expresseddeep concern about drug smuggling, includingyaba, from Myanmar.

He called for real-time information sharing andfrequent interaction to stop human trafficking,illegal border crossing and the drug trade.The statement said Bangladesh’s representativesproposed a border road and cooperation toremove mines and home-made bombs along thefrontier.Brig-Gen Myoe Than, chief of police general staff,also expressed his concern about cross-bordercrime and called for concerted efforts to addressthe issues, adding that drugs were causing thesame problems in Myanmar.“He promised full cooperation,” the jointstatement said.Bangladesh agreed to maintain its “zero-tolerance” policy towards drugs and psychotropicsubstances, especially yaba, along the border.

Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/bangladesh-border-chief-demands-rohingya-return-myanmar.html


08 Jan 2020


At Myanmar Peace Talks, State Counselor Urges All Parties to Put Country First

State Counselor Daw Aung San Suu Kyi called onall signatories of the Nationwide CeasefireAgreement (NCA) to take responsibility andaccountability in implementing the pact, sayingits principles apply equally to all stakeholders.She made the comments on Wednesday at theresumption of the long-awaited JointImplementation Coordination Meeting (JICM) inNaypyitaw, at which she was joined by militaryrepresentatives led by deputy army chief ViceSenior General Soe Win, and ethnicrepresentatives led by Restoration Council ofShan State (RCSS) chairman General Yawd Serk.The JICM is considered a gateway to resumingthe formal peace process, which has been stalledfor more than a year since two NCA signatoriessuspended their participation. The KarenNational Union decided to temporarily suspendits participation in formal peace negotiations inOctober 2018 and the RCSS withdrew from theJoint Monitoring Committee (JMC) on the NCAthe following month.“The NCA has joint ownership, and everyoneneeds to take responsibility and accountability,”

she said, adding that parties to the agreement“need to avoid having the mindset ofimplementing only what we prefer.”One reason for the recent hiatus in formal peacetalks is that the EAOs, the government and theMyanmar military (or Tatmadaw) lack a commonunderstanding of the NCA’s provisions—an issuestill on the negotiation table.“If any of the groups take on what they like andignore the things they don’t like, it will causedifficulties to other groups and would createcontinuous hurdles for the peace process,” sheadded.Acknowledging the efforts of the peacenegotiators of both the government and theethnic armed organizations, she said thatpolitically, the JICM “had more substance thanjust the resumption of formal peace talks”…

Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/myanmar-peace-talks-state-counselor-urges-parties-put-country-first.html


08 Jan 2020

PwC | January 2020

3. Weekly Investment News

23

PwC | January 2020

Weekly Key Investment NewsHeadlines

Extractive businesses asked to disclose ownership information

Thai Kasikorn Bank sends investment proposal to A Bank

Going beyond regulations for Myanmar M&As

24

Development of Dawei SEZ makes progress

Xi’s Myanmar visit to move ahead China-backed port


Extractive businesses asked to disclose ownership information

Companies and state-owned enterprises (SOEs)involved in Myanmar's oil and gas production andtransportation, mineral and gemstone industriesare required from January 1 onwards to publiclydisclose information on beneficial ownership andpolitically exposed persons.This is in accordance with NotificationNo.104/2019 dated October 2019 and in line withRequirement 2.5 of the Extractive IndustriesTransparency Initiative (EITI) Standard 2019.Myanmar collected data on the beneficial owners,their links to politically exposed persons andother related information from 158 companiesand five SOEs operating in the relevant industriesNovember and December 2019. These companiesare included in the fourth EITI Myanmar reportcovering 2016-17.Out of 163 companies that fall under the scope ofdisclosure, 18 companies disclosed some data butdid not submit them, and 24 companies did notdisclose any data. 121 extractive companies andSOEs both disclosed and submitted details ontheir beneficial owners and other relatedinformation.

''The country's economy is on the way to creatinga responsible business environment. Disclosure ofbeneficial ownership in the natural resourcessector is an important role to show businessintegrity,'' U Maw Htun Aung, Myanmar CountryManager for Natural Resource GovernanceInstitute (NRGI), told The Myanmar Times.“Beneficial ownership information will berequired for bidding or the licensing process, inline with EITI standards, to show transparencyand responsibility in doing business. It should notbe viewed as prohibitive for natural resourcesbusinesses,'' U Maw Htun Aung said.A taskforce has been set up to help companiescomply with the disclosure requirements inMyanmar. The Directorate of Investment andCompany Administration (DICA) is the focalagency in collaboration with the Myanmar EITINational Coordination Secretariat.

Source: Myanmar Timeshttps://www.mmtimes.com/news/extractive-businesses-asked-disclose-ownership-information.html


06 Jan 2020


Thai Kasikorn Bank sends investment proposal to A Bank

Thailand-based Kasikorn Bank (K Bank)conferred an investment proposal to AyeyawadyFarmers Development Bank (A Bank) at ZabuthiriHall of the Central Bank of Myanmar yesterdaymorning.Present at the ceremony were CBM Governor UKyaw Kyaw Maung, deputy governors anddirectors-general, Thai Ambassador MrsSuphatra Srimaitreephithak, Assistant GovernorMrs Nawaron Dejusuvan from Thailand’s CentralBank, and officials from A Bank and K Bank.During the ceremony, they discussedopportunities for cooperation between thebanking sectors of both countries in developingMyanmar’s economy, current processes betweenA Bank and K Bank to implement equityparticipation from K Bank into A Bank, and thenthe investment proposals were submitted to CBM.

Source: The Global New Light of Myanmarhttps://www.globalnewlightofmyanmar.com/thai-kasikorn-bank-sends-investment-proposal-to-a-bank/

NewspapersThe Global New Light of Myanmar

09 Jan 2020


Going beyond regulations for Myanmar M&As

With the passage of new legislation in recentyears such as the Investment Law and CompaniesLaw, the government led by Daw Aung San SuuKyi has paved the way for a more vivid mergersand acquisitions setting.These new laws will help promote a moreattractive investment ecosystem in a countryconsidered Asia’s last frontier market, as theprogressive nature of the economic and regulatoryframework significantly enhance the operatingenvironment for foreign investors. The markethas already observed and will continue to seevarying interpretations on laws and regulation,which certainly is an ongoing processaccompanied by necessary additional legalreforms and clarifications.While these advancements create both questionsand opportunities to engage in deal structuring,efforts have to be complemented by above-average resource commitments in the duediligence and post-merger integration (“PMI”)phase.There is little doubt that foreign Merger andAcquisition (M&A) activity will be strongly

influenced by the effectiveness of the country’sreform programme, ability to upgrade itsinfrastructure and handle threats towardsstability and safety. However, I see the followingoperational aspects – often less in the spotlight ofthe public – as equally important for whatgoverns value-creating transactions for bothforeign investors and the country’s overalleconomic direction.Corporate valuationDue diligence in Myanmar is more time-consuming due to factors including the lack ofquality public databases, sufficiently functioningcapital and equity markets and target companiesbeing reluctant to share documentation regardingemployment, permits and licences. In light ofthese difficulties, investors are advised to engagein a close exchange with business owners andrethink what adaptations are needed to matchclassical valuation models to Myanmar’s emergingM&A market.Source: Myanmar Timeshttps://www.mmtimes.com/news/going-beyond-regulations-myanmar-mas.html


09 Jan 2020


Development of Dawei SEZ makes progress

In a January 9 statement, the Dawei SEZManagement Committee said changes have beenmade to the contractual arrangements withItalian-Thai Development Company Ltd (ITD) forthe development of initial industrial estate inTanintharyi Region.According to contract amendment, ITD and otherinvestors must compensate and resettle villagersaffected by industrial zone project. It must alsoadhere to international standards on theenvironment.The Thai government has agreed to provide a loanfor the construction of a two-lane highway whichwill connect Dawei SEZ to the Myanmar-Thailandborder, paving the way for further construction totake place.Further details are being discussed to amend theland lease contract as well as development of aliquefied natural gas and power plant project, thestatement said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/development-dawei-sez-makes-progress.html


10 Jan 2020


Xi’s Myanmar visit to move ahead China-backed port

Myanmar and China are expected to ink a deal onthe US$1.3 billion Kyaukphyu port project duringPresident Xi Jinping’s visit this month.The Chinese embassy in Yangon announced todaythat President Xi will travel to Myanmar onJanuary 17, marking his first visit to the SoutheastAsian country in 19 years and the first as China’sleader.This year marks the 70th anniversary since thePeople’s Republic of China and Myanmarestablished formal diplomatic recognition. Xi’svisit is seen as an attempt to further cementbilateral relations and pushing ahead the China-Myanmar Economic Corridor scheme as well asother projects under the Belt and Road Initiative.One of the most watched developments is thehighly-anticipated inking of Kyaukphyu port, aChina-backed scheme under Beijing’s Belt andRoad Initiative (BRI). A consortium led by CITIC,comprised of four other Chinese firms andThailand’s Charoen Pokphand Group, aims todevelop the deep-sea port as part of a specialeconomic zone (SEZ) in the restive state.“There are seven agreements under the

framework agreement for Kyaukphyu. Two will besigned,” deputy commerce minister U Aung Htootold the reporters in Nay Pyi Taw on Thursday,referring to the “framework agreement” signed bythe two sides in late 2018.Other Memoranda of Understanding (MOUs) arealso expected to be signed during the Chineseleader’s visit, including the export of crops andcattle, according to the minister, who made nomention of the now-suspended Myitsone dam.The controversial hydrodam, a project whose fateremains undecided under almost four years of theDaw Suu administration, is not expected to be oneof the deals sealed, according to Ma Khin KhinKyaw Kyee, deputy director at the Institute ofStrategy and Policy Myanmar.Kyaukphyu port’s 2018 framework agreementpaves way for an actual concession-granting deal,said executive president of CITIC Myanmar YuanShaobin in 2017.

Source: Myanmar Timeshttps://www.mmtimes.com/news/xis-myanmar-visit-move-ahead-china-backed-port.html


10 Jan 2020

PwC | January 2020

3. Weekly New Tenders

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PwC | January 2020

No applicable Tenders announced for the week ending 10 Jan 2020

Tenders (Myanmar)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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http://www.mmtimes.com/

https://tender.yangon.gove.mm/

http://consult-myanmar.com/

http://www.myanmar-opportunities.org/mm/tenders

http://www.buildersguide.com.mm/en/

PwC | January 2020

ADB: SC 113642 MYA: GMS Economic Corridor Agribusiness Development, Closing date: 16 Jan 2020

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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WB: PPP and E&S Handbook, Closing date: 20 Jan 2020

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/

PwC | January 2020

4. MIC Permitted Projects

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PwC | January 2020

MIC Permitted Projects (Meeting 1, 2020)

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No. Name of Company Type of Investment Form of Investment

1 Shu San Industry Co., Ltd.Processing and sales of rice and rice related products

Wholly Myanmar Owned

2 New World Development Co., Ltd.Construction and leasing of hotel, serviceapartment and studio apartments

Joint Venture

3Kyauk Phyu Electric Power Co., Ltd.

Generation of 135 electricity form combined cycle gas turbine power plant,supply and sales of electricity on IPP (BOT)

Wholly Foreign Owned

4 Au Mit Myanmar Co., Ltd. Higher education services Wholly Foreign Owned

Source: DICA

PwC | January 2020

5. Upcoming Events

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PwC | January 2020

Upcoming Events (January 2020) List

Date Location Name of Event Sector Price Focus Points

13-17 Jan YangonMMIX & MMNOG Forum

IT andTechnology

TBC

“MMIX & MMNOG Forum will bringtogether internet business leaders, internetexperts and networking engineers,networking professionals, technicalcommunities, government representatives,network operators, content providers, andetc. This event will provide greatopportunities for peering, interconnectionand advanced technical knowledge, learnfrom workshops and tutorials, attendtechnical presentations, update each otheron their work, share news and updates, andetc.”

29-30 Jan Yangon

International Conference on Economics and Finance Research (ICEFR)

Banking & Finance

TBC

“International Conference on Economics andFinance Research is a prestigious eventorganized with a motivation to provide anexcellent international platform for theacademicians, researchers, engineers,industrial participants and budding studentsaround the world to share their researchfindings with the global experts.”

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

https://www.go-myanmar.com/events-and-conferences

https://10times.com/myanmar

PwC | January 2020

Upcoming Events (February 2020) List


18-19 Feb Yangon

Mobile Money & Financial Inclusion Summit

Banking & Finance

TBC

"A Special Focus on Myanmar plusEmerging Opportunities from theregional Digital Transformation."Mobile Money & Financial Inclusion Summitis the cornerstone platform for allstakeholders in the evolving digital financemarketplace to address opportunities andfundamental challenges including:Government and Industry Collaborations,Inclusive Interoperability; EmergingInnovative Payment Platforms; Building aLiquid and Expansive Agent Network;Growth Markets; etc.

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PwC | January 2020

Upcoming Events (February 2020) List (cont’d)


26-28 Feb Yangon

International Conference on Future Computer and Communication

IT andTechnology

TBC

“Following the success of 2019, 2020 The12th International Conference on FutureComputer and Communication (ICFCC2020) is to be held conjunction with the 18thICCA 2020 once again in Yangon (Rangoon),Myanmar (Burma) during February 26-28,2020, which is organized by SCIence andEngineering Institute, USA, co-organized byUniversity of Computer Studies, Yangonunder Ministry of Education, Yangon(Rangoon), Myanmar (Burma), andtechnically supported by Nagoya Institute ofTechnology, Japan and OKAYAMAUniversity, Japan.”

27-28 Feb YangonInternational Conference on Computer Applications

IT and Technology

TBC

“International Conference on ComputerApplications will bring together leadingengineers and scientists in computer andinformation technology from around theworld. The conference offers an excellentopportunity to learn and share the latestdevelopments to interact with leadingexperts in the field.”

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PwC | January 2020

Upcoming Events (February 2020) List (cont’d)


28-29 Feb Yangon

International Conference on Management, Economics & Social Science (ICMESS)

Education & Training

TBC

“International Conference on Management,Economics & Social Science will provide anexcellent international forum for sharingknowledge and a result in Management,Economics & Social Science. The aim of theConference is to provide a platform to theresearchers and practitioners from bothacademia as well as industry to meet theshare cutting-edge development in the field.”

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© 2020 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 Weekly Business Intelligence Publication

For further information please contact:

Mark RathbonePwC Capital Projects and Infrastructure Leader, Asia+65 6236 [email protected]

Jennifer TayPartnerCapital Projects & Infrastructure, PwC Singapore +65 8876 [email protected]

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