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PwC MyanmarWeekly Business Intelligence

Issue 17921 September 2019

www.pwc.com/mm

PwC | September 2019

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1. Weekly Key Financial & Business News

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Weekly Key Financial & Business NewsHeadlines

Government to Sell Low-Cost Apartments Through JICA’s ODA Loan

Myanmar to collaborate with Hong Kong on BRI projects

YSX to Welcome Foreign Traders in 2020

Myanmar Competition Commission Warns Against Monopolies and False Marketing

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Russia offers to help Myanmar with digital legislation, e-govt


Weekly Key Financial & Business NewsHeadlines

IKBZ Insurance restructures to incorporate life options

Yangon plans logistics hub, truck terminal to ease congestion

Yangon Govt Submits New Regional Planning Bill With 149 projects

Electricity price hike fuels demand for solar power in Myanmar

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WaveMoney, Yoma Bank collaborate to extend collateral-free loans

PwC | September 2019 6

Myanmar to collaborate with Hong Kong on BRI projects

Myanmar is set to cooperate with Hong Kong inaddition to other countries along China’s Belt andRoad Initiative, announced Minister ofInvestment and Foreign Economic Relations UThaung Tun during the Fourth Belt and RoadSummit 2019 in Hong Kong on September 11 and12.The summit was organised by the government ofHong Kong and the Hong Kong TradeDevelopment Council to promote businesscollaboration through the Belt and Road platform.More than 5800 representatives from 69countriesattended the event.“Hong Kong and Myanmar are strategicallylocated along the Belt and Road project. HongKong is a major economic entrance to China, acentral area for logistics and is also a centre forfinancial services. On the other hand, Myanmar isa fast-growing country and so will cooperate withHong Kong and other countries along the Belt andRoad project,” U Thaung Tun said.He said Myanmar’s Sustainable DevelopmentPlan will work to include such sectors asinvestment, finance, logistics, and industry in

implementing the Belt and Road Initiative, aglobal development strategy adopted by theChinese government involving infrastructuredevelopment and investments in 152 countriesand international organisations in Asia, Europe,Africa, the Middle East, and the Americas.“Hong Kong is a strategic location with a lot ofpotential and will participate in the BRI throughcooperation on policies and projects for the BRIby sharing extensive knowledge about the mainprospects of Hong Kong, and promotion of HongKong’s service industry,” said Chief Executive ofHong Kong Carrie Lam Cheng Yuet-ngor.Multi-government cooperation, and the creationof economic opportunities between the relevantsenior officials of the countries involved in theBRI were discussed by the representatives at theconference.

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-collaborate-hong-kong-bri-projects.html

NewspapersMyanmar Times

17 Sep 2019


Government to Sell Low-Cost Apartments Through JICA’s ODA Loan

The Department of Urban and HousingDepartment is planning to sell low-costapartments that are built by the department andothers built by private developers. They will besold using JICA’s Official Development Assistance(ODA) loan at an 8.5 percent interest rate.The department will sell low-cost housing theydeveloped in mid-September, afterwards they willsell residential housing that was developed byprivate developers in accordance with JICA’sguidelines.The buildings must be earthquake resistant, havefire escapes, and allow fresh airflow into theapartment, according to the Department of Urbanand Housing Department.The department will price the units starting atK6.6 million, they will be available to buyers whohave up to K3 million savings at the Construction,Housing and Infrastructure Development Bank(CHID Bank) as of August 31.The low-cost apartments will be sold under a 15-year instalment payment plan built for peoplewith low income, a director from the Departmentof Urban and Housing Development said.

When the number of people who are eligible toapply for a low-cost apartment drops below thenumber of available units, then the remainingunits will be made available to people who don’tnormally qualify to purchase low-incomeapartments. This new group of people will beselected through a lucky draw event.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/government-sell-low-cost-apartments-through-jica-s-oda-loan

NewspapersMyanmar Business Today

17 Sep 2019


YSX to Welcome Foreign Traders in 2020

The Myanmar Security Exchange Commission(MSEC) issued an order allowing foreigners toconduct trading on the Yangon Stock Exchange inJuly, but did not specify an exact date for start ofthe liberalizing of the stock market.U Htay Chun, Member of the Commission,indicated that they will start allowing foreigntraders early next year to allow time for thecommission to make the necessary arrangements.“We cannot start immediately. We need toprepare the exchange for taxation purposes, andto accept currency exchange rates which willmake for a smooth experience,” he added.The MSEC will allow foreign investors to buyshares up to a maximum of 30 percent of thevalue of a local company, and 35 percent forforeign companies. The other exception is thestock cannot be associated with immovableproperties such as land.Companies selling stock to foreign investors needto follow the rules and regulations set by theexchange.When calculating the ownership of the foreigninvestors for a listed company, the commission

will consider the ownership of the sharesregistered at the Yangon Stock Exchange as assetsof foreigners.The Yangon Stock Exchange was launched inDecember 2015, and there are now five listedcompanies: First Myanmar Investment Public Co(FMI), Myanmar Thilawa SEZ Holdings PublicCo. (MTSH), Myanmar Citizen Bank (MCB), FirstPrivate Bank (FPB), and TMH Telecom Public Co(TMH).

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/ysx-welcome-foreign-traders-2020


17 Sep 2019


Myanmar Competition Commission Warns Against Monopolies and False Marketing

Myanmar Competition Commission will keepmonopolies in check among local businesses, andunfair tender process in government developmentproject“You could have monopoly before, but now, youcan’t and won’t now. We will take serious legalaction against unfair competition, unfair tenderprocess, and monopolies in accordance with law,”U Than Maung, Vice President of MyanmarCompetition Commission, said.A monopoly exists when a specific person orenterprise is the only supplier of a particularcommodity. Monopolies can be characterized by alack of economic competition to produce the goodor service, a lack of viable substitute goods, andthe possibility of a high price well above theseller's marginal cost that leads to a highmonopoly profit.The Competition Law is not to specifically controlbusinesses in the country, but to protect them andconsumers, said U Aye Han, a member of thecommission.The law was enacted in 2015, but the commissionwas formed three years later in 2018, and is now

holding campaigns to raise awareness throughworkshops and talks.The vice president of the commission met withmembers of the media on September 6 and saidthat the commission will take action againstmonkey business in tender processes. This was inresponse to reports of corruption, and that strongand powerful businesses are making bargains towin contracts.The commission also reminds the companies notto make misleading advertisements.“When they are running advertisements, theyneed to make truthful claims. We see misleadingclaims in advertisements. For example, an adoften claims that their products are the best;according to who or what data? Look at educationads. They are frequently using the word“international” such as in international school.We need to scrutinize to see if they meet anyinternational standards,” said U Thuta Aung.Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/myanmar-competition-commission-warns-against-monopolies-and-false-marketing


17 Sep 2019


Russia offers to help Myanmar with digital legislation, e-govt

Russia on Wednesday offered to supportMyanmar on the digital front, with proposals tohelp the country draft its first cyber security law,build e-government platforms and develop smartcities.More than 70 percent of the Russian populationhas round-the-clock access to e-governmentplatforms, the use of which also helps to eliminatecorruption and errors, said Alexey Volin, vice-minister of digital development, communicationsand mass media of the Russian Federation.U Soe Thein, permanent secretary for theMinistry of Transport and Communications, said:“We are trying to promulgate a cyber law to covere-government, e-commerce and cyber security.We are currently working with the World Bank todraft this legislation. We are waiting for the nextstep which is to conduct public consultations forthe draft law.”The Russians are also keen to help local broadcastmedia transition from analog to digitaltransmission. “Russia has 98.6 percent digitaltransmission coverage, the bulk of which is free ofcharge,” Mr Volin said, adding that Russia can

also help local companies invest in the rightequipment and infrastructure to make thetransition.But U Win Naing, senior managing director ofShwe Than Lwin Media, which owns Sky Net, saidthe biggest hurdle to adopting digitaltransmission in Myanmar is cost and terrain.“Myanmar is a big country with lots ofmountainous terrain, so the infrastructure neededfor digital is very expensive,” he said.He added that “Myanmar currently uses satellitetransmission, which is the quickest way to reachthe whole country, as of today.”Mr Volin said one of the deciding factors forRussia to switch to full digital broadcast is toallow the people free access to television. Whilethe initial capital investment is high, going digitalis ultimately cheaper than satellite access, forwhich users have to pay regularly.

Source: Myanmar Timeshttps://www.mmtimes.com/news/russia-offers-help-myanmar-digital-legislation-e-govt.html


19 Sep 2019


Yangon plans logistics hub, truck terminal to ease congestion

Yangon is planning to build a logistics hub andtruck terminal in the outskirts of the city to easetraffic congestion and provide enough parkingspace for trucks, said Yangon Region Planningand Finance Minister U Myint Thaung at theregional parliament.He was responding to U Kyaw Min Han, MP fromLatha township, who asked if there any plans toimplement a project to improve efficiencies andproductivity in the logistics industry.Currently, companies transport goods by 22-wheel, 12-wheel and 6-wheel trucks from factoriesdirectly to respective townships.However, others move the goods to a depot atBayintnaung Highway bus terminal in Mayangonetownship before they are loaded onto trucks andferried to their intended destinations. This has ledto heavy traffic congestion near the terminal,which is no longer big enough to accommodatethe rising number of trucks.“The regional government and Myanmar HighwayFreight Transportation Service Association havediscussed how to solve this issue and we areplanning to reduce the number of trucks entering

and exiting the downtown area and building alogistics hub that includes a new truck terminaloutside Yangon city,” said U Myint Thaung.The country’s freight transportation network ismainly covered by truck in addition to the rail andsea channels. Goods delivered to the ports arestored in warehouses before being moved bytrain, vessels or trucks.During fiscal 2017-18, a total of 530,000 trucksmoved goods across Yangon. Railway freightvolumes amounted to 526,000 tonnes, while422,000 tonnes and 1400 tonnes were moved byvessels and planes, respectively. – Translated

Source: Myanmar Timeshttps://www.mmtimes.com/news/yangon-plans-logistics-hub-truck-terminal-ease-congestion.html


19 Sep 2019


IKBZ Insurance restructures to incorporate life options

IKBZ Insurance on Tuesday announced thelaunch of IKBZ Life, a new insurance companyfully dedicated to life insurance products, incompliance with regulations by the InsuranceBusiness Regulatory Board (IBRB).IKBZ Insurance is a general insurance companywhich obtained preliminary approval to operate ajoint venture with Japanese insurance providerMitsui Sumitomo Insurance on July 31. Finalapproval is expected on October 4 at the earliest.The JV will offer general insurance products whileIKBZ Life will focus on products linked to lifeinsurance including group health insurance, longterm whole life insurance as well as an educationsavings plan.“By creating a separate legal entity we are notonly complying with government requirements,we are also simplifying our offerings for potentialcustomers. Clients interested in life insurance willhave a dedicated company to support them,whereas customers looking to protect their assetswill continue to be served by IKBZ Insurance,”said U Nyo Myint, vice chair of IKBZ Insurance.The restructuring will give both companies

greater room for specialisation and innovation,allowing each to target specific customers withthe right products.Results of a recent survey conducted by IKBZInsurance revealed that the difficulty inunderstanding insurance among potentialcustomers is the greatest hurdle to business.Myanmar’s insurance industry is expected to growexponentially over the coming decade and isexpected to reach a comparable size to theregional average of 5pc to the country’s GDP.Total insurance penetration in Myanmar iscurrently just 0.1pc.With the opening of the insurance market toforeign competitors, more options will becomeavailable to potential customers but it also meansthat more must be done to ensure that customersare well informed about their options, U NyoMyint said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/ikbz-insurance-restructures-incorporate-life-options.html


19 Sep 2019


Yangon Govt Submits New Regional Planning Bill With 149 projects

YANGON—Yangon Region Minister for Planningand Finance U Myint Thaung submitted aregional planning bill that includes 149 projectsslated to be continued or started in the upcoming2019-2020 fiscal year to the parliament onWednesday.U Myint Thaung told lawmakers that the billincludes 80 projects from the Yangon ProjectBank development plan and others forwarded bythe region’s seven socioeconomic developmentproject committees.The minister said they expect the projects in thebill will contribute to the gross domestic product(GDP) growth of the region as well as the country.He added that the bill has been approved by theRegional Cabinet and the Regional PlanningCommission.U Kyaw Zay Ya, secretary of the regionalparliament’s Finance, Planning and EconomicCommittee, told The Irrawaddy on Thursday thatthe bill includes the New Yangon City project, anew city project in Dala, industrial zones in 11townships on the outskirts of Yangon, upgrades tolocal markets and affordable housing projects.

He said Yangon City Development Committee(YCDC) has also proposed in the bill to spend 455million kyats (US$300,000) for a mechanicalbiological treatment system for the Htein Pinwaste disposal site.The lawmaker said that the government shouldhave discussed the details of the projects with theparliament’s planning committee in advance,prior to drafting the bill.“We don’t yet know the details of the projects. Wehave no idea about how far along the assessmentsare for each project. We have to carefully checkthose before we approve [in the parliament].”The bill will be discussed by lawmakers inupcoming sessions of the Yangon regionalparliament.

Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/yangon-govt-submits-new-regional-planning-bill-149-projects.html

NewspapersThe Irrawaddy

19 Sep 2019


Electricity price hike fuels demand for solar power in Myanmar

JUNE 25 was a good day for Mr Kapil Seth.The government had just announced a bigelectricity price increase from July 1, andbusinesses and households were nervously tryingto calculate how much their bills would jump. Butfor Seth, the managing director of MandalayYoma Solar Energy, the price rise made hiscompany’s rooftop solar systems much morefinancially attractive. And he wanted people toknow about it.“We got the tariff calculator up on the website infour hours so that people could check how muchthey would save with solar,” he told Frontier. “Wesent out messages to all our clients. Most werereally interested in learning what [the increase]was going to cost them. Many are going to seetheir bills double.”At the new rates, rooftop solar systems arestarting to seem like a savvy investment,particularly for industrial and commercial users.If you bought a solar system before June 25, youcould expect to recoup the cost in around sevenyears – an annual return of about 15 percent. Theprice increase wasn’t as steep for commercial

users as households, which had previously beenreceiving much larger subsidies. Even so, Sethsaid that some businesses would now see apayback of less than four years – a massive 25pcyear-on-year return.Seth said that businesses Mandalay Yoma hadpreviously ignored because it considered them toosmall are starting to make enquiries, and it’sgetting calls from households. “A lot of smallerfactories are starting to reach out. We wouldnever have even targeted most of those companiesin the past.“The fact is that solar is the cheapest cost [power]option today … if you install a solar rooftopsystem, you will see savings straight away,” hesaid.But for now the market for industrial andcommercial customers is tiny. Mandalay Yoma isthe largest player, with more than 25 completedprojects from Lashio in Shan State to Dawei…Source: Frontier Myanmarhttps://frontiermyanmar.net/en/electricity-price-hike-fuels-demand-for-solar-power-in-myanmar

NewspapersFrontier Myanmar

19 Sep 2019


WaveMoney, Yoma Bank collaborate to extend collateral-free loans

Wave Money has officially announced acollaboration with Yoma Bank Ltd to boost thedevelopment of micro, small and mediumenterprises (MSMEs) in Myanmar.Through the collaboration, Yoma Bank providesunsecured, instant credit to Wave Money agentsto help these agents operate their businessesmore productively.Wave Money is a joint venture betweentelecommunications company Telenor and YomaBank to provide mobile financial services via anationwide agent network or via a wave mobileaccount.Yoma Bank says Wave Money agents will be ableapply for the SMART Credit loan facility, whichrequires no collateral, quickly and easily. Theinterest rate for the SMART Credit Plus loans is16 pc.Daw War War Aung of Yoma Bank’s Digital CreditDepartment said Wave Money’s agents can applyonline for the loan, which will be disbursed withinone business day. She said the digital creditproduct for small businesses is the first of its kindin Myanmar.

The loan amount will be based on the agents’Wave Money transaction volume and since it isapplied for online, it will not require going to abank branch, collateral, guarantors, or extensivedocumentation. Agents must clear a low monthlyhurdle of transaction volume to continue toremain eligible for a Yoma Bank loan, so inactiveagents lose access to the credit programme.So far, Yoma Bank has disbursed over K40 billionto over 8000 Wave Agents,said Jason Loughnane,Head of Digital Credit at the bank.Wave Money and Yoma Bank began offeringMyanmar’s first real-time mobile wallet to banklinkage in August 2016, allowing Wave Moneywallet users to instantly transfer funds to anaccount with Yoma Bank.Agents who receive loans can instantly move thefunds from their Yoma Bank account to theirWave Money wallet, enabling them to processmore transactions for customers…Source: Myanmar Timeshttps://www.mmtimes.com/news/wavemoney-yoma-bank-collaborate-extend-collateral-free-loans.html


20 Sep 2019


2. Weekly Key Policy News

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Myanmar vows to take stricter action on illegal trade

Weekly Key Policy NewsHeadlines

National Plan mooted for 2019-2020, GDP growth to hit 7pc

Microfinance and Insurance Laws Expected Next Year

Chinese Charm Offensive Aims to Win Support for Giant Pipelines in Myanmar

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Govt to focus on supporting growth of digital economy, telecoms infrastructure


National Plan mooted for 2019-2020, GDP growth to hit 7pc

Parliament has approved the new National Planlaw for fiscal 2019-20, which will be effective fromOctober 1, 2019 to September 30, 2020.The National Plan is expected to help Myanmar’sGDP grow by 7 percent to K95.4 billion during theperiod compared to 6.8pc in fiscal 2018-19.Contributing to economic growth is the financialsector, which is estimated to grow by 11.3pc, andthe industrial sector, which should expand by9.9pc in the coming fiscal year. The servicesindustry, together with telecommunications,construction, forestry, construction, electricityand trade are also expected to grow between 7pcand 13pc over the period.While still showing overall expansion, growth inthe livestock and agriculture, power generationand mining sectors are forecast to take a backseat,according to the National Plan.The government is expecting the private sector tocontribute more than 70pc of total investmentsduring the year. Meanwhile, the trade deficit isestimated to reach US$2 billion, with importsworth $17.5 billion outnumbering exports. Percapita GDP, which measures the country’s

economic output after accounting for its totalpopulation, is forecast to rise by around 12pc toK2.2 million.During the last National Planning Commissionmeeting in June, the President U Win Myint saidthe National Plan for this fiscal year would belinked with the Myanmar SustainableDevelopment Plan and includes practicalprogrammes that are immediately beneficial tothe public.Meanwhile micro, small and medium enterprisesare expected to benefit under the National Plan,which aims to improve basic infrastructure,attract more foreign investments, provide accessto capital loans, reduce investment restrictionsand push through coordination in private sectordevelopment, the President added.Other improvements to look forward to includemore power generation capacity and less poweroutages for the summer of 2020…

Source: Myanmar Timeshttps://www.mmtimes.com/news/national-plan-mooted-2019-2020-gdp-growth-hit-7pc.html


16 Sep 2019


Microfinance and Insurance Laws Expected Next Year

The Ministry of Planning and Finance is in theprocess of revising the Microfinance Business Lawand Insurance Business Law, and expects tofinalize the regulations in 2020, according to UThant Zin Soe, Director General of FinancialRegulatory Department.“The Microfinance Business Law is being revisedand is in its final draft, and has been sent to theUnion Cabinet for review. The Insurance BusinessLaw, however, is still in a zero draft state,” hesaid.The existing Microfinance Business Law wasenacted in 2011, and the 1996 Insurance BusinessLaw is far outdated and in need of revision. This iswhy the department is trying to update the laws.The insurance law is in a zero draft state, whichmeans one of two things; work hasn’t started on ityet, or the framework on the law is in a very roughand unstructured state.The drafts will provide space for small businessesthat will cover both micro-finance businesses andinsurance businesses and the department willpublish drafts for the general public.“Our aim is trying to establish a legal framework

by bridging the two laws. We will also organize aconsultation workshop in Naypyidaw, and inviteinsurance companies and microfinancecompanies to provide insight,” U Thant Zin Soesaid.The World Bank, JICA, USAID, UKaid and DaNaFacility are providing technical assistance fordrafting the laws.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/sme-development-bank-provides-k300-million-loans-smes


17 Sep 2019


Chinese Charm Offensive Aims to Win Support for Giant Pipelines in Myanmar

YANGON – China has launched a public-relationsdrive along the route of the proposed Chinesetwin oil and natural gas pipeline project to pacifyenvironmental and safety concerns and demandsfor proper compensation.The state-owned China National PetroleumCorporation (CNPC) – which is the mainshareholder in the pipelines project – aims toboost understanding of Chinese culture amongcommunities along the route.The launch ceremony was attended by YangonChief Minister U Phyo Min Thein, ChineseAmbassador to Myanmar Chen Hai, the vicepresident of CNPC, Xu Wenrong, and officialsfrom the Myanmar Ministry of Information.The South-East Asia Gas Pipeline CompanyLimited said the CNPC will show three Chinesefilms dubbed into Burmese in the five places fromOct. 15 to Nov. 10.The project has been controversial since 2013,provoking opposition among communities andenvironmental organizations.The agreement was signed under the militaryregime in 2008. The project spans 771 kilometers

in Myanmar with the oil and natural gas pipelinesrunning in parallel from the port of Kyaukphyu inRakhine State on the Bay of Bengal throughMagwe and Mandalay regions and northern ShanState before entering China.The company said the crude oil pipeline isdesigned to transport 22 million tons annuallywhile the natural gas pipeline is designed to carry12 billion cubic meters of gas. The totalinvestment in the project is more than US$2.45billion, according to the Naypyitaw government.The company said the Myanmar governmentwould earn US$13.81 million annually in right-of-way payments and US$1 per ton of crude oiltransported as a transit fee.A series of protests were held in Rakhine, Shanand Magwe amid concerns over safety as theroute passes through farms and near homes.Protesters have demanded fair compensation forloss of land and livelihood.Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/chinese-charm-offensive-aims-to-win-support-for-giant-pipelines-in-myanmar.html


19 Sep 2019


Govt to focus on supporting growth of digital economy, telecoms infrastructure

A senior government official says that thegovernment is set to focus on supporting thedigital economy next year.Deputy Director General of Posts andTelecommunications U Than Thun Aung said thisin his speech during the Myanmar Connect 2019Conference on Tuesday.U Than Thun Aung said regulatory areas that willbe the focus next year to support digital economyinclude regulation balancing, customerstratification, consumer protection, cybersecurity, support for the digital economy, regionalintegration, and social media and spam.Realising the importance of building a strongdigital economy, the government recentlyannounced the Myanmar Digital EconomyRoadmap and the formation of the DigitalEconomy Development Committee (DEDC) withthe goal of enabling the country’s digitaltransformation, introducing digital government,digital trade and innovation, and to develop adigital economy across all sectors for inclusiveand sustainable socioeconomic development.“The digital economy has to be something for the

whole country and we are trying to bring digitaldevelopment in accordance with the country’senvironment,” U Than Htun Aung, said.By most accounts the telecommunications sectorhas grown tremendously over the last five years.Despite being one of the least developedeconomies in Southeast Asia, Myanmar is on parwith its neighbours in terms of mobile phone andinternet penetration. According to a governmentsurvey in the previous fiscal year, there were 56.8million mobile phone users in 2017-18 against atotal population of 54 million, implying apenetration rate of more than 100 percent.In fact, 4G availability in Yangon was the fourthhighest in ASEAN at over 80 percent, trailingBangkok, Singapore and Jakarta but ahead ofKuala Lumpur, Phnom Penh, Ho Chi Minh Cityand Manilla, according to a May report byOpenSignal, an independent mobile analyticscompany.Source: Myanmar Timeshttps://www.mmtimes.com/news/govt-focus-supporting-growth-digital-economy-telecoms-infrastructure.html


19 Sep 2019


Myanmar vows to take stricter action on illegal trade

Myanmar will take strict action against illegaltrade with the aim of substantially reducing thevolume of fake or illegal products entering themarket, said U Soe Win, Minister of Planning andFinance.“Illicit trade can be reduced only if there are strictregulations against it,” he said at the Anti-IllicitTrade Forum held in Nay Pyi Taw on Thursday.Among the actions taken so far is the drafting asystem to control the flow of goods via sea,including inspection of containers, establishing asecure lock system and building high securitywarehouses to store goods in transit.“Having a system with more control and securitycan help to weed out illegal trade and establishproper records as well,” U Soe Win said.The Illegal Trade Eradication Steering Committeeled by vice president U Myint Swe was alsoformed this year.Marc De La Fouchardiere, executive director ofEuroCham Myanmar, said illegal trade often takesplace at the border, where the rule of law is weak.Myanmar shares borders with five neighbouringcountries where security and border patrol is

lacking.He added that illegal trade results in a loss of taxrevenues for the government and hindersdevelopment of local businesses and theeconomy.Jeffery Hardy, director general of theTransnational Alliance to Combat Illicit Trade,said illicit trade is prevalent across Myanmar,including illegal logging and wildlife trade as wellas production and distribution of counterfeitgoods.According to EuroCham Myanmar, illegal tradevolumes in Myanmar during fiscal 2017-18 totaledUS$6.4 billion.Although exports statistics showed Myanmar hada trade volume of $25.1 billion, the EuroChamMyanmar report revealed that actual exportsamounted to just $18.7 billion. This alreadyaccounts for illegal volumes of beer, whiskey,cigarettes, medicines, electronics, cosmetics andother consumer goods.Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-vows-take-stricter-action-illegal-trade.html


20 Sep 2019


3. Weekly Investment News

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Weekly Key Investment NewsHeadlines

Myanmar PE&VC Association launches with funding from UK-based CDC

Japanese Firm Joins Consortium for Yangon Station Redevelopment

Japanese company launches first phase of cold-storage facility in Yangon

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Delta Capital Myanmar invests more money in internet service firm Frontiir

Details Scarce on Funding, Planning for Flood Prevention at New Yangon City Project

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Myanmar PE&VC Association launches with funding from UK-based CDC

In a bid to boost investment activity in thefrontier market, the Myanmar Private Equity andVenture Capital Association (MPE&VCA) hasbeen formed by some of the most active players inthe region.The association has also received funding fromCDC Group, the development finance institutionwholly owned by the UK government, it said, in astatement.Incorporated in May 2019, the association has 11members including Anthem Asia, Daiwa PIPartners, Delta Capital, Emerging MarketsInvestment Advisers, Insitor Management,Myanmar Investments International, MyanmarStrategic Holdings, Seed Myanmar, YangonCapital Partners and YGA Capital.The association said in an announcement that ithas received funding from CDC Group, thedevelopment finance institution wholly owned bythe UK government.“This launch is an important event for thefinancial services and investment community inYangon and Myanmar. It marks a milestone in thedevelopment of the Myanmar economy since the

country started opening up in 2012,” saidJosephine Price, inaugural chairperson atMPE&VCA and the co-founder of Anthem Asia.There is currently over $200 million ininvestment capital that is chasing opportunities inMyanmar. However, there is still a need topromote the role and understanding of venturecapital and private equity in local economicdevelopment. MPE&VCA’s key role would be tolink different stakeholders within the Myanmarmarket to provide a greater impact.“Our early focus will include basic research,helping regional and international investmentgroups understand more about Myanmar, andbeing a voice for institutional investors with theMyanmar authorities,” said Price.The association will rope in members from privateequity, venture capital, investment firms as wellas professional service providers.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/myanmar-pevc-association-154163/

NewspapersDeal Street Asia

16 Sep 2019


Japanese Firm Joins Consortium for Yangon Station Redevelopment

Yangon – Japan’s Sumitomo Corporation willreplace China’s Sino Great Wall Co., which haswithdrawn from the project to upgrade YangonCentral Railway Station, managing director U BaMyint of Myanma Railways told The Irrawaddy.The Yangon Central Railways Station AreaComprehensive Development Project wasunveiled in 2015. In February 2016, 15 companieswere shortlisted and two years later the CentralTransport Development Consortium (CDTC) wasselected as the preferred bidder for the US$2.8-billion (4.3 trillion-kyat) project.The consortium comprises Myanmar’s MinDharma Co., China’s Sino Great Wall andSingapore-based property developer OxleyHoldings Limited.The development will be a mixed-developmentproject with a central transport hub thatintegrates rail and mass transit, surrounded byhousing and businesses on 25.7 hectares with afloor area of 1.09 million square meters, saidOxley.Sino Great Wall is a Beijing-based company andlisted on the Shenzhen Stock Exchange. Min

Dharma is a subsidiary of Mottama Holdingsowned by Chinese-Myanmar businessman YangHo.Sino Great Wall has gone bankrupt in the US-China trade war and has subsequently withdrawnfrom the project, said U Ba Myint.“The government has approved that the Japanesecompany will come in its place. We are working tosign the deal before the end of this year,” he said.The design of the project would not change, saidU Ba Myint. The project is estimated to createaround 100,000 jobs, said the CTDC last year.The entire infrastructure will be handed over tothe Myanmar government after 50 years ofoperation, according to Myanma Railways generalmanager U Tun Aung Thin.The consortium is only allowed to use 14.5 out of25.4 hectares owned by Myanma Railways at thestation, and will develop other parts and pay rentto Myanma Railways, he said.Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/japanese-firm-joins-consortium-yangon-station-redevelopment.html


17 Sep 2019


Japanese company launches first phase of cold-storage facility in Yangon

Japanese company Fukuda & Partners Co Ltd(F&P) has launched what it says is the firstlogistics facility with refrigerated and cold storagefacilities in Yangon City.F&P specialises in project management ofarchitectural design and construction for logisticsand commercial facilities.F&P started work on the development of alogistics and office space project in Thaketatownship, Yangon, via its subsidiary FLPTharkayta Co Ltd (FLP) in 2017.The first phase of the project called LL TownTharkayta Building B was officially opened lastThursday.Over 130 guests from the Embassy of Japan inMyanmar, the Japan Chamber of Commerce andIndustry of Myanmar, other related companies,construction partners, tenants, and stakeholdersattended the opening ceremony.“There were many issues while developing thisbuilding. Today, this logistics facility is completedby overcoming such hardships. We have receivedsupport and guidance from many people both inJapan and Myanmar to make this possible. I

deeply appreciate everyone’s support,” said FLPManaging Director Fukuda San during theceremony.LL Town Tharkayta is a multi-functional facilitycomposed of three buildings, Building A, B and C,covering a total land area of approximately9,095.6 square metres and a total floor area ofapproximately 10,081 square metres.In the next phase, Building C is scheduled to becompleted and operational by February 2020 andBuilding A will be operational by September2020. The services of these three multi-functionalbuildings will be expanded to include three-temperature-zone cold storage, commercial officespace, stores, training and educational centres,and rental conference rooms.LL Town Tharkayta is located on the route fromthe Thilawa Industrial Park, an area developedunder public-private partnerships between Japanand Myanmar…Source: Myanmar Timeshttps://www.mmtimes.com/news/japanese-company-launches-first-phase-cold-storage-facility-yangon.html


17 Sep 2019


Delta Capital Myanmar invests more money in internet service firm Frontiir

Existing backer Myanmar-based private equityfund manager Delta Capital Myanmar (DCM) isputting in additional capital in local internetservice company Frontiir along with two of itslimited partners as co-investors, according to apress statement.Frontiir is the largest internet service provider inMyanmar offering wireless broadband and fiberto home internet access to companies,households, and individuals.The Delta Capital LPs, who invested in the round,include Denmark’s Investeringsfonden forUdviklingslande (IFU) and Norway’s Norfund.UK-based development finance institution CDCGroup, which is also an LP in Delta CapitalMyanmar, had announced a $30-million directequity investment in Frontiir in July this year.DCM’s investment is being done throughMyanmar Opportunities Fund II (MOF II).The deal marks the fifth investment for DeltaCapital Myanmar, which backed Frontiir in its2016 funding round.Frontiir will use the proceeds for working capitaland for network expansion.

Frontiir is one of the drivers for bringing downbroadband tariff in the country, which was $50per Mbps in 2016 and less than $3 per Mbpstoday.The company claims to have a subscriber base of500,000 today compared to around 4,000 in2016. The company has operations mainly inYangon and Mandalay, the two largest cities inthe country. It plans to expand and reach over 20cities and towns by 2022.DCM has over $120 million of asset undermanagement (AUM). It provides growth capital toleading entrepreneurs and businesses activeacross key growth sectors of Myanmar’s frontiereconomy.DCM has been operating in Myanmar since 2013with a total of five investments from its MyanmarOpportunities Fund I and two investments fromMyanmar Opportunities Fund II.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/delta-capital-myanmar-frontiir-154241/

NewspapersDeal Street Asia

17 Sep 2019


Details Scarce on Funding, Planning for Flood Prevention at New Yangon City Project

YANGON—Lying less than 5 meters above meansea level, receiving a large amount of rainfallduring the monsoon season and surrounded bywaterways on three sides, the nearly 20,000-acres of land on the west bank of the YangonRiver that lie directly across from Myanmar’scommercial capital were, until recently, neverhigh on city planners’ list of prime locations forurban development. In fact the area is somethingof a planner’s nightmare, especially as the waterlevel is prone to increases due to a combination oftidal and storm surges, river discharge andrainfall, posing a significant flood risk to the area.However, this is the exact location for the NewYangon City development—Yangon Chief MinisterU Phyo Min Thein’s ambitious plan to transformthe less developed and low-lying western bank ofthe river into a “Smart City”, which he says willcreate 2 million jobs.To make it happen, he formed the New YangonDevelopment Company (NYDC) last year as thesole developer of the project, announcing that itwould be fully owned by the government. So far,the project is still in the planning phase. Since its

formation, the company has carried out severalassessments, including a study of the flood risk tothe area.NYDC released an executive summary, “StrategicFlood Risk Assessment New Yangon City Phase1”, last month. Undertaken by RoyalHaskoningDHV, the assessment advises buildinga US$100-million (152.66-billion-kyat) “primaryring-dyke system” around the waterfront areas ofthe site—which is surrounded by the Yangon andPan Hlaing Rivers as well as the Twante Canal—asthe area slated to house New Yangon City isvulnerable to flooding from three sources: tidaland storm surges, river discharge, and rainfall.Without protection, it values the annual economicrisk posed to the project by flooding at US$1.2billion at the current sea level, rising to US$2.1billion in the event of a 90-cm rise in sea level.

Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/details-scarce-funding-planning-flood-prevention-new-yangon-city-project.html


18 Sep 2019


3. Weekly New Tenders

30


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/ .

31

No applicable Tenders announced for the week ending 20 Sep 2019

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/


ADB: TA-9758 REG: Advancing Cooperation in the Maritime Sector in South Asia Subregional Economic Cooperation Program - Economist (Maritime Ports) (53175-001), Closing date: 24 Sep 2019

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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ADB: TA-9758 REG: Advancing Cooperation in the Maritime Sector in South Asia Subregional Economic Cooperation Program - Environment Expert (Maritime Ports) (53175-001)), Closing date: 24 Sep 2019

ADB: SC 113251 MYA: Operations Assistant, Closing date: 19 Sep 2019

ADB: TA-9758 REG: Advancing Cooperation in the Maritime Sector in South Asia Subregional Economic Cooperation Program - Energy Expert (Maritime Ports) (53175-001), Closing date: 24 Sep 2019

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/


Tenders (Multilateral organizations) List (cont’d)

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

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ADB: TA-8785 REG: Mekong Business Initiative - 247 Private Sector Specialist (48270-001), Closing date: 26 Sep 2019

ADB: TA-9647 REG: Strengthening Safeguards Management in Southeast Asia - National Resettlement Specialist (52059-001), Closing date: 26 Sep 2019

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/


4. MIC Permitted Projects

34


MIC Permitted Projects (Meeting 15, 2019)

35

No. Name of Company Type of Investment Form of Investment

1

Southern Myanmar Development BedokConstruction & Engineering Co., Ltd (Myanmar) 34%, Asiatech Power Pte., Ltd.(Singapore) 33%, Siam Gas Power Pte., Ltd.(Singapore) 33%

Aqua farming, processing, cold Storage and sales of marine products

Joint venture

2 Bago Young Clothing Limited China 100 % Manufacturing of garments on CMP basis Wholly foreign owned

3Myanmar Sumec Win Win Garments Co., LtdChina 100 %

Manufacturing of garments on CMP basis (Factory-2)

Wholly foreign owned

4 Aquamarine Ecotourism Development Co., Ltd. Hotel And Resort Services Wholly Myanmar owned

5Ayeyarwaddy International Industrial Port Co., Ltd.

International Industrial Port and One StopLogistic Service

Wholly Myanmar owned

6 Myat Min Co., Ltd. (Bago Region) Supporting Service For Livestock Breeding Wholly Myanmar owned

7 Myat Min Co., Ltd. (Mandalay Region) Supporting Service For Livestock Breeding Wholly Myanmar owned

8 Mingalar Hong Sheng Trading Co., Ltd (Permit)Production, distribution and sales of diesel and petrol

Wholly Myanmar owned

Source: DICA


5. Upcoming Events

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Upcoming Events (October 2019) List

Date Location Name of Event Sector Price Focus Points

03-05 OctYangon Myanmar Build & Decor Construction Free

“Myanmar Build & Decor is the best sourcefor architecture & interior buildingmaterials, interior design, furniture anddecor as well as the industry platform foreducational and knowledge sharing. Its offera networking platform to industry playersboth local and international during thisevent.”

09-11 Oct Yangon

International Construction Power & Mining Exhibition

Construction, Power & Energy,Mining

Free

“Building & Construction Myanmar is theleading event for Building & Construction,Electric Power & Renewable Energy, andMining & Minerals Recovery. It is truly theNo. 1 and largest industry event of its kind inMyanmar and provides the best platform toconnect to the country's rapidly expandinginfrastructure industries.”

18-20 Oct Yangon Yangon Hotel Expo Hospitality TBC

“Yangon Hotel Expo 2019 will be a one-stopshop for promoting and exchanging businessideas among Hoteliers, investors and touroperators in Yangon.”

37

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


Upcoming Events (October 2019) List (cont’d)

Date Location Name of Event Sector Price Focus Points

30-31 OctYangon

Myanmar Textile Summit

Apparel and Clothing

USD1700

“Myanmar Textile Summit 2019, organizedby Shanghai ECV International, is going tobe held on Oct. 30th - 31th, 2019, in Yangon,Myanmar. The garment industry ofMyanmar has a huge potential to contributeto national economic growth as a substantialemployment giver, and attract foreigninvestment.”

31 Oct-02 Nov Yangon MyanFurnitureHome andOffice

TBC

“MyanFurniture is an internationalfurniture, architecture and interior showwhich showcases furniture for home, office,gardens, along with opportunities togenerate business in a comprehensiveplatform.”

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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

© 2019 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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