PwC MyanmarWeekly Business Intelligence

Issue 14128 December 2018

www.pwc.com/mm

PwC | December 2018

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PwC | December 2018

1. Weekly Key Financial & Business News

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PwC | December 2018

Weekly Key Financial & Business NewsHeadlines

MPT Announces New Data Pack Offering Premium Entertainment Content

Telenor’s 4G/LTE Coverage Reaches 90% of all Townships in Myanmar

Three Million Additional Vehicles Come to Myanmar Since Import Policy Change

MLCA Signs Agreement with Real Estate Associations for Quality Apartments

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Average inflation rate accounts for 6.66 % in November this year

PwC | December 2018

Weekly Key Financial & Business NewsHeadlines

Two steps forward, one stride back

Yangon must safeguard the environment

A year of despair and despondency

Fuel oil prices fall by 20% to 34%

5

Rice export declines within eight months

PwC | December 2018 6

Telenor’s 4G/LTE Coverage Reaches 90% of all Townships in Myanmar

Telenor Myanmar has announced that its 4G/LTEnetwork now covers more than 300 townships,which is 90% of the whole country. In September,Telenor set an ambitious goal of bringing 4G/LTEnetwork to 300 townships by the end of the year.Now, the goal is achieved two weeks ahead of planwith over 5,000 sites in operation. In 2019,Telenor will have more than 6,000 sitesbroadcasting 4G/LTE, to provide customers withthe country’s best data experience.As Bawlakhe, Hopang, Shadaw, Lukkaing,Sidoktaya, Mingin and Hkamti townships haverecently been added to Telenor’s 4G/LTEnetwork, customers in those townships havejoined the increasing community of peopleexperiencing the affordable and innovative4G/LTE services offered by Telenor Myanmar.“Telenor is working tirelessly to deliver a high-quality mobile phone experience to everyone inthe country. That is why connecting more than300 townships in Myanmar to our 4G/LTEnetwork is a significant milestone for thecompany. I am confident that this achievementwill truly benefit our customers, and will satisfy

their increasing need for speedy and reliabledata,”said Sharad Mehrotra, Chief ExecutiveOfficer of Telenor Myanmar.“In Telenor, we are serious about network quality.To maintain the best network quality, ourtechnology team ensures that we have coverage inmore than a limited part of the township beforewe are satisfied with our 4G/LTE roll-out in thearea. We take pride in designing a high-qualitymobile network that gives Myanmar people thebest experience when watching videos, playinggames or listening to music on their phones,”saidJai Prakash, Chief Technology Officer of TelenorMyanmar. Telenor Myanmar officially launchedits 4G/LTE services since June 2017 and atpresent, its 2G, 3G and 4G network serves 18million customers in all states, regions andterritories. In April 2017, Telenor Myanmar wasrecognized as the fastest network in the countryas received Ookla’s Speedtest Award…Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/telenor-s-4glte-coverage-reaches-90-all-townships-myanmar

NewspapersMyanmar Business Today

25 Dec 2018

PwC | December 2018 7

MPT Announces New Data Pack Offering Premium Entertainment Content

MPT announced the launch of its new data packoffer —the first of its kind in Myanmar —whichallows users to enjoy thousands of exciting moviesand TV shows for free through the Viu mobile appat an affordable data rate of just 1 Ks/MB.Launched in partnership with Viu, the first andonly OTT service with all international contentwith 100% Myanmar subtitles and available fordownload, this content data bundle allows usersto enjoy popular series including the latestepisodes of Korean hits such as Running Man,Empress Dignity, and many others.Once subscribed, MPT users can download theViu app and start watching their favorite showson MPT’s nationwide high speed 3G/LTE+network immediately with no additionalsubscription fees. Along with popular Koreandramas and variety series, Viu also features greatshows and movies from other countries such asIndia, Thailand, Japan, and Myanmar. Selectedtelevision series from Korea and Japan areavailable on the Viu app with Myanmar subtitleswithin 24 hours of original broadcast in therespective countries. All the amazing videos are

also downloadable as the MPT Viu Data Packgives subscribers full premium access to theapplication.To subscribe to the MPT Viu data pack, simplydial *8002#. After successfully subscribing,customers will receive a confirmation message viaSMS with 500 MB of Viu data and a unique codefor Viu premium subscription. Subscribers thenneed to open the Viu app and enter the code tostart enjoying their favorite movies and shows for24 hours. This data pack will only chargesubscribers 1 Ks/MB, costing 499 Ks for 500 MBfor the day.For more information on the MPT Viu data pack,please call 106. Users may also visit MPT’s officialwebsite www.mpt.com.mm

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/mpt-announces-new-data-pack-offering-premium-entertainment-content

NewspapersMyanmar Business Today

25 Dec 2018

PwC | December 2018 8

Three Million Additional Vehicles Come to Myanmar Since Import Policy Change

Since Myanmar eased its auto import policy,allowing individual auto imports in 2013, thenumber of vehicles in the country has surged bythree million, according U Thar Oo, DeputyMinister of the Ministry of Transportation andTelecommunications.“Because of the eased auto-import policy, thenumber of vehicles is increasing rapidly each year.In 2013, there were four million vehicles inMyanmar, and it’s reached seven million byOctober 2018. Meaning, the number of vehicleshas surged by three million,’’he added.The Government issues an auto-import policy ona yearly basis. For instance, in 2015, you couldimport vehicles between 2006 and 2010 modelyears. In 2016, brand new autos had to be left-hand drive vehicles. In 2017, the model year rangewas adjusted to between 2014 and 2017, andfinally in 2018 all imported vehicles, new andused, had to be left hand drive.The policy for 2019 was issued on October 30,2018.According to auto import policy for 2019, themodel year of vehicles imported under

consignment program for home use must bebetween 2016 and 2019, and only left-hand drivevehicles are allowed to import. Model year oftrucks as well as Mini Bus, City Bus and ExpressBus must be between 2015 and 2019, and theyalso must be left-hand drive.The policy change, however, is seen not to havemuch impact on the local auto market.In 2016, the Yangon Regional Government, in aneffort to tackle the serious traffic congestion inYangon, stopped issuing Yangon license in orderto reduce the pace of additional numbers ofvehicles on the road. In order to import a car to bedriven in Yangon, you must have an existingYangon license. However, they do issue licenseesfor locally manufactured and assembled vehicles.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/three-million-additional-vehicles-come-myanmar-import-policy-change

NewspapersMyanmar Business Today

25 Dec 2018

PwC | December 2018 9

MLCA Signs Agreement with Real Estate Associations for Quality Apartments

Myanmar Licensed Constructors Associationsigned an agreement with Myanmar EngineeringSociety, Myanmar Real Estate Service Associationand Myanmar Constructors Association toimprove the quality of apartments beingconstructed in the country.According to the agreement, when a memberassociation receives foreign experts, they mustarrange a meeting with Myanmar LicensedConstructors Association as well as providingtechnological assistance and training.“Because of this, we will be able to meet foreignexperts, when they visit Myanmar. We can workwith other associations regarding construction.The construction sector will develop if we, theassociations, work together in the constructionprocess such as building high quality affordablehousing,’’U Lah Zel, General Secretary ofMyanmar Licensed Constructors Association, toldMyanmar Business Today.Thanks to the agreement, MLCA can discuss andconsult with other associations whenimplementing a construction project.In addition to the three associations it signed,

Myanmar Licensed Constructors Association isplanning to sign agreements with the BankAssociation, Insurance Association andIndependent Lawyers’Association of Myanmar.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/mlca-signs-agreement-real-estate-associations-quality-apartments

NewspapersMyanmar Business Today

25 Dec 2018

PwC | December 2018 10

Average inflation rate accounts for 6.66 % in November this year

The average inflation rate accounted for 6.66 % inNovember and it also continued rising a little inOctober. The inflation rate increased for eightconsecutive months during this year, said asource of Central Statistics Organisation.The average inflation rate remained 6.66 % untilNovember in 2018. The October inflation rateaccounted for 6.34 %. In comparison with thesetwo figures, the inflation rate rose back. FromApril to November, the inflation rate increased foreight consecutive months.The inflation rate based on the calculation in 2012accounted for 6.66 % until November 2018. Theyear-on year inflation accounted for 8.33 %.During November in 2018, Mandalay reached atthe top of inflation chart with 11.50 %, followed byRakhine State with 10.78 % and Magway with 9.11%.During November in 2018, Magway Regionreached at the top of year-on-year inflation chartwith 12.36 %, followed by Ayeyawady Region with4.82 %.The CSO conducted a poll on household incomeand consumption in 82 townships during 2012

November in order to calculate consumer indexesand inflation. The poll sought data from 32,669households.The inflation calculation was based on 2006 inthe past. Now is the different matter and it isbased on 2012. It is the base year.The inflation rate saw a progress in the first short-term of five year project from 2011-2012 to 2015-2016 FY. The inflation rate continued rising in thesecond short-term five year project from 2016-2017 to 2020-2021 FY.To be able to control the inflation rate, it isnecessary to deal with the matters relating tofinancial policy, monetary policy, trade policy andforeign currency policy.Based on 2006, the inflation rate accounted for2.82 % in 2011-2012 FY, 2.85 % in 2012-2013 FY,5.72 % in 2013-2014 FY and 5.90 % in 2014-2015FY respectively.

Source: Eleven Myanmarhttps://elevenmyanmar.com/news/average-inflation-rate-accounts-for-666-in-november-this-year

NewspapersEleven Myanmar

26 Dec 2018

PwC | December 2018 11

Yangon must safeguard the environment

Recently a Malaysian friend who visited Yangonhad this to say about the place: “Yangon is aquaint little city with lots of pretty colonialbuildings, beautiful parks and marvellous gildedtemples.”There’s more though. She added, “Unfortunately,those buildings are also dilapidated, most placesare rundown and there’s rubbish everywhere.Although among the loveliest, the Myanmarpeople are among the worse litterbugs I’ve seen inmy travels around this region.”That reminded me of an email a Yangon sourcesent me earlier this year. My source told me manybusinesses have the funds to clean up andconserve the environment, such as by sponsoringrubbish bins and holding campaigns to assist withrubbish collection, but that many of them end updeciding not to for fear of upsetting the YangonCity Development Committee (YCDC).One local firm is said to have hundreds of rubbishbins in storage but is reluctant to put them inpublic places like bus shelters because it wouldinvolve developing a system with the YCDC toempty the bins daily.

Since coming to power, the authorities havepitched numerous plans to make Yangon greener,safer and smarter.Yet, basic hygiene in the city is still lacking, and itis common to see rubbish strewn across publicareas and in back alleys. That, in turn, has drawnall manner of vermin and interfered with healthyliving conditions. But businesses can take theinitiative to champion good environmentalpractices as part of their corporate socialresponsibility. There are so many simple waysresponsible businesses can make a difference tothe environment. Across the city, people disposeof plastic bottles, boxes and cutlery without asecond thought. Single-use foam containers fortakeaway meals and beverages are common. Foodwrappers and straws litter the pavements andwaterways. With that in mind, holdingeducational programmes on rubbish disposal isjust one example of how businesses can take theinitiative to save the environment.Source: Myanmar Timeshttps://www.mmtimes.com/news/yangon-must-safeguard-environment.html

NewspapersMyanmar Times

28 Dec 2018

PwC | December 2018 12

Two steps forward, one stride back

The Myanmar economy moved forward in 2018,during which it opened up several industries toforeign investors and raised efforts to upgradeand organise the avenues through which fundsare channelled into needed areas of the economy.During the year, the government also announcednew plans and enforced legislation aimed atdrawing investments and making it easier forcompanies to do business.Exports, led by the garment and agriculturesectors, grew during the first half of the year,propelled by a more favourable exchange rate.Higher jade sales to China also played a part. As aresult, the trade deficit has narrowed to US$300million in the first half of the year, a five-year low.But confidence in the economy has also fallenamong existing businesses and as the Rakhinecrisis continues to play out. During the first half ofthis year, approved foreign direct investments(FDI) totalled just $1.7 billion, compared to $4.1billion during the same period in the previousfiscal year.In addition, with global economic conditionsbecoming more uncertain and a weaker currency

weighing on business margins, GDP is forecast toto slow from 6.8 percent last year to 6.2pc thisyear, according to the World Bank.On the whole though, experts such as those at theWorld Bank and International Monetary Fund(IMF) said Myanmar made progress in 2018, butagreed that the risks are rising for the economy inthe months ahead. Still, GDP is projected toexpand in the years ahead, if the government’splans are properly executed.As 2018 draws to a close, we have compiled thetop five developments that helped drive theeconomy forward this year and the five that heldit back from securing better growth.Among the positive steps taken is theliberalisation of the retail and education sectors.On April 20, the Myanmar InvestmentCommission (MIC) issued Notification 7/2018,permitting foreigners to fully own and operateprivate schools in Myanmar for the first time.

Source: Myanmar Timeshttps://www.mmtimes.com/news/two-steps-forward-one-stride-back.html

NewspapersMyanmar Times

28 Dec 2018

PwC | December 2018 13

A year of despair and despondency

2018 is the year in which Myanmar’s failure toexecute key reforms has plunged the country intocrises and chaos, overshadowing the considerableprogress made in some areas. It would take years,if not decades, before we climb out of the abyssinto which we have sunk.The National League for Democracy (NLD) partyswept into office in 2016 with its mantra of“change”. Although that term was vaguely definedin their election manifesto, it is fair to assume thatthe electorate wanted change for the better, andthey wanted positive change for the many.As the NLD-led administration passed midpointof their five-year term in October, it is clear theMyanmar people are getting none of what theywanted, or anywhere near that. 2018 is shaped bythe aftermath of the advent of Rakhine. We werechosen as the Economist’s “country of the year” in2015. The government’s response to the crisis,coupled with the failure on the economic front,has turned Myanmar into the cautionary tale ofhow things could go wrong.“Rarely has the reputation of a leader fallen so far,so fast” was the verdict of State Counsellor Daw

Aung San Suu Kyi by International Crisis Group’sAugust report. The same assessment could be saidof Myanmar.In 2018, business confidence has sunk to a three-year low; approved FDI has fallen short of theofficial estimates by a wide margin; and thebusiness community is despairingly frustratedwith the protectionist policies and lack of reforms.Myanmar’s growth forecast is downgraded by theWorld Bank by 0.5 percentage points to 6.2pc in2018-19. Tourist arrivals stagnated (0.7pc) for thefirst nine months of this year compared with anincrease of 7.1pc in 2017.While the incumbent administration repeatedlypledged to elevate Myanmar into the top 100 inthe Ease of Doing Business ranking by 2020, thecountry failed to improve at all under Daw Suu,being buried at 171st. In comparison, China, Indiaand Malaysia all made significant improvementsin the index.

Source: Myanmar Timeshttps://www.mmtimes.com/news/year-despair-and-despondency.html

NewspapersMyanmar Times

28 Dec 2018

PwC | December 2018 14

Fuel oil prices fall by 20% to 34%

Local fuel prices have decreased by 20 percent toover 34 percent since October 10 due todecreasing global oil prices and slight fluctuationin dollar price, according to local filling stations.Fuel prices have fallen to K695 for one litre of 92Ron octane, K760 for one litre of 95 Ron octane,K870 for one litre of diesel and K875 for one litreof premium diesel.When global oil prices got high and dollar priceappreciated, local fuel prices increasedcontinuously with 21 percent in four months fromJune to October this year. At that time, one litreof 92 Ron octane was priced K1,065, one litre of95 Ron octane K1,115, one litre of diesel K1,095and one litre of premium diesel K1,105.Since the second week of October in 2017, oilprices per barrel had significantly increased withUS$49 in early August, US$51 in early October,US$55 in early November, US$58 in earlyDecember, US$61 in early January this year,US$64 in early February, US$68 in late April,US$72 on May 21, and US$74 on July 10. Theprice decreased to US$69 on August 7 and US$65on August 20. But it increased again to US$67 on

September 10, US$70 on September 21 andUS$76 on October 3. The price decreased toaround US$42 on December 24, and reachedaround US$45 on December 27.On December 27 in local market, maximum pricesfixed by Myanmar Oil Importers and DistributersAssociation were K870 for one liter of diesel(K3,949 per gallon), K875 for one liter ofpremium diesel (K3,972 per gallon), K695 for oneliter of 92 Ron octane (K3,155 per gallon) andK760 for one liter of 95 Ron octane (K3,450 pergallon).In comparison with prices on October 10 thisyear, in over two months, prices have decreasedby 20 percent for diesel, 21 percent for premiumdiesel, around 34 percent for 92 Ron octane andaround 31 percent for 95 Ron octane.

Source: Eleven Myanmarhttps://elevenmyanmar.com/news/fuel-oil-prices-fall-by-20-to-34

NewspapersEleven Myanmar

28 Dec 2018

PwC | December 2018 15

Rice export declines within eight months

Myanmar only exported over 1.5 million tons ofrice and broken rice within eight months fromApril 1 till December 14, according to MyanmarRice Federation (MRF).Myanmar earned about US$288 million frommore than 800,000 tons of rice and broken riceexport through border trade routes and overUS$240 million from over 700,000 tons of riceand broken rice export via maritime trade, it said.The MRF expected to export up to two milliontons of rice and broken rice in mini budget period,said Ye Min Aung, General Secretary of the MRFduring a ceremony to sign MoU between theUnion of Myanmar Federation of Chambers ofCommerce and Industry (UMFCCI) andInternational Finance Corporation (IFC).Myanmar is exporting rice and broken rice withships and China via Muse 105 mile border tradecenter.Myanmar expanded its rice export to new marketsin 2017-18 FY and about 3.6 million tons of ricewas exported. It broke the record for over 50years.European Union (EU) is planning to withdraw

generalized scheme of preferences (GSP) for threeyears for rice export from Myanmar, according tothe MRF.The EU is planning to collect €175 per ton of longgrain rice in 2019, €150 per ton of long grain ricein 2020 and €125 per ton of long grain rice in2021 as import tax.Myanmar is exporting rice to EU membercountries and African countries via maritimetrade routes and China to Muse 105 mile bordertrade route.

Source: Eleven Myanmarhttps://elevenmyanmar.com/news/rice-export-declines-within-eight-months

NewspapersEleven Myanmar

28 Dec 2018

PwC | December 2018

2. Weekly Key Policy News

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PwC | December 2018

Weekly Key Policy NewsHeadlines

Government to Raise Taxes on Imports

UMFCCI Requests Government to Allow Exchange for Chinese Yuan and South Korea Won

Businesses “wait and see” as govt plans for GAD transfer

17

Yangon investment committee allows more investments

‘The project bank will enhance transparency and competitiveness’: U Set Aung

PwC | December 2018 18

Government to Raise Taxes on Imports

In an effort to reduce imports, the Ministry ofPlanning and Finance will levy more tax onimports instead of placing tax on locally producedproducts with high quality that can replace theimported products, according to U Soe Win,Union Minister of the Ministry of Planning andFinance, during the regular meeting between vicepresident of Myanmar and local businessmenheld at UMFCCI on December 14.“With the aim of nurturing the manufacturingsector for import substitution, we will raise tax onthe products imported even though the same kindof products produced locally are present in themarket,’’he said.However, he did not identify the importedproducts on which more tax will be placed.For import of raw materials which are necessaryfor local industry, the ministry has plans to lowerthe tax for a certain period, he added.He also explained the plan of establishinginternational standard customs warehouse in linewith existing international laws and procedures tostore imported raw materials and streamline theimportation process for local manufacturers to

produce value added products locally and exporttheir products.By doing so, raw material importers can dostoring and taking out inventories easily as well asdistributing the materials as the market demandswhile reducing the prices and creating jobs, U SoeWin explained.Myanmar is hoping to gradually reduce tradedeficit, which it sees every year, by improvinglocal manufacturing. Myanmar saw $5.2 billion oftrade deficit in the 2017 Fiscal Year, $3.8 billionin 2018 Fiscal Year, $1.03 billion in April-September transitional Fiscal Year of 2018, and$0.33 billion in October of the 2019 Fiscal Year.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/government-raise-taxes-imports

NewspapersMyanmar Business Today

25 Dec 2018

PwC | December 2018 19

UMFCCI Requests Government to Allow Exchange for Chinese Yuan and South Korea Won

The Union of Myanmar Federation of Chambersof Commerce and Industry (UMFCCI) made arequest to the Private Sector DevelopmentCommittee chaired by Vice President U MyintSwe to allow providing exchange services for theChinese Yuan and Korean Won.U Kyaw Min Hlaing, President of Hotel andTourism Working Committee of MBI under theUMFCCI, argued that, if Myanmar offers a visafree program to other countries with an aim ofboosting tourists, we should provide a currencyexchange for those countries too.UMFCCI urged the government to allowexchanges for the currencies of the countries,which are enjoying visa free benefit granted byMyanmar, because there are illegal exchanges forthose currencies.“The authorities said that they are in talks withcounterparts of the other countries and we willknow about it soon,’’U Kyaw Min Hlaing added.“A Chinese Yuan stands at about 220 Myanmarkyats. In Lasho in Northern Shan State, you canexchange Yuan at a highway station, but you can’texchange a large amount, only a few thousand.

Some businessmen send Myanmar kyat toKokang in Northern Shan State, where theyexchange for Yuan. In Mu-se, the border town,people are conducting a currency exchange from asimple chair and a table,’’said Ko Soe Min, aresident in Lasho.Currently, Myanmar allows the U.S. dollar,Singapore dollar, Euro, Ringgit, and Baht inexchange centers, but does not allow othercurrencies. However, there are illegal exchangesfor unapproved currencies.In addition to currency exchange, UMFCCI alsourged government to allocate a stable budget inorder to boost tourism marketing activities, andto add inbound pilgrim tours into tourism by lawwhile letting them to renew the license.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/umfcci-requests-government-allow-exchange-chinese-yuan-and-south-korea-won

NewspapersMyanmar Business Today

25 Dec 2018

PwC | December 2018 20

Businesses “wait and see” as govt plans for GAD transfer

The business community will “wait and see” if thetransfer of the General AdministrationDepartment (GAD) to civilian control improvesthe bureaucracy and regulatory environment forthose doing business outside major cities.The President Office last week announced that theGAD under the military-controlled Ministry ofHome Affairs is set to be shifted to the Ministry ofthe Union Government Office, which is headed byU Min Thu, who was until recently a deputyminister in the President's Office.U Zaw Htay, the President’s Office spokesperson,told the press on December 22 that “the policyhas been set” and the government “will workaccording to the procedures to implement it.” Themilitary still has control over defence, borderaffairs and home affairs ministries without theoversight of civilian authorities.Traditionally, the home affairs ministry appointsthe GAD at each level of government, whichcovers more than 16,000 local districts andtownships. An Asia Foundation (TAF) report in2014 described the GAD as the “backbone ofMyanmar’s public administration”.

“With 36,080 staff spread across the country, theGAD maintains a ubiquitous presence builtaround its administrators, particularly at the all-important township level,” the report stated. Thedepartment has a very extensive remit, rangingfrom maintaining law and order to collectingtaxes and managing land. Many of its officers areassociated with the military and they work closelywith the security forces, the police and judiciaryacross the country.Since the transition in 2011, its role has expandedto include providing staff for sub-nationalexecutives and legislatures. Businesses, however,often find it difficult to work with GAD in remoteregions.Dr Matthew Arnold, the TAF countryrepresentative in Myanmar, described theimportance of the GAD to Myanmar’s governanceas “exceptional”.

Source: Myanmar Timeshttps://www.mmtimes.com/news/businesses-wait-and-see-govt-plans-gad-transfer.html

NewspapersMyanmar Times

26 Dec 2018

PwC | December 2018 21

Yangon investment committee allows more investments

Yangon region investment committee allowedover US$37 million and Ks3.493 billion worth ofinvestments which can create more than 2,500job opportunities in the region, according to thecommittee.The committee approved them during its meetingheld at Yangon Region government office onDecember 24.The committee approved 14 foreign investmentsfrom five countries and two local investments inthe region. It can create job opportunities formore than 14,000 people. The increase of foreigninvestment in industrial sector is over US$5million.Foreign investment is reached to about US$466million from October 1 till at the end of Novemberin this fiscal year and transportation sectortopped the list of foreign investment with US$171million followed by production sector withUS$100 million.Singapore topped the list of foreign investors withUS$357 million followed by China with US$54million, according to Directorate of Investmentand Companies Administration (DICA).

They are followed by Thailand with US$12million, Vietnam with US$10 million, Hong Kongwith US$7 million, Taiwan with US$6 million andJapan with US$5 million respectively.Myanmar is facing other challenges to promoteinvestment and the halted purchasing powerparity over the world is affecting seriousconsequences on exports and foreign directinvestments which is targeting for exportproducts, according to Myanmar InvestmentPromotion Plan (MIPP).

Source: Eleven Myanmarhttps://elevenmyanmar.com/news/yangon-investment-committee-allows-more-investments

NewspapersEleven Myanmar

28 Dec 2018

PwC | December 2018 22

‘The project bank will enhance transparency and competitiveness’: U Set Aung

The Ministry of Planning and Finance ispreparing to launch an interactive and publiclyaccessible online “project bank” containingpriority initiatives that have been screened andapproved by the government for their positiveimpact on economic and social development.The initiative aims to overhaul the way in whichministries identify and tender projects, and willprovide a new framework for public-privatepartnerships and enable the private sector toinvest in state assets.Deputy Minister for Finance and Planning U SetAung spoke to Frontier about the alignment of theproject bank with the Myanmar SustainableDevelopment Plan (2018-2030), its likely impacton government procurement and how it dovetailswith other state-led initiatives, such as the China-Myanmar Economic Corridor.What is the project bank and why is it beingdeveloped?It is really important that the strategic actionplans identified in the Myanmar SustainableDevelopment Plan (MSDP) are implemented in aproper way. The project bank is a very significant

mechanism for implementing these plans.The MSDP policy document doesn’t just containpolicy directions and trajectories, it also containspolicy implementation metrics, in which 251strategic action plans have already beenidentified. These action plans must be furtherbroken down into implementable projects andprogrammes.The projects and programs will go throughdifferent assessment systems in order to find outwhether they are relevant to the strategic plans ofthe country. It is very important that all projects[in which the government is involved] go throughrigorous, stringent assessments. Only those thatpass will qualify to be implemented throughmultiple financing mechanisms.How are government ministries involved in thisprocess? What, for example, will they now have todo differently?

Source: Frontier Myanmarhttps://frontiermyanmar.net/en/the-project-bank-will-enhance-transparency-and-competitiveness-u-set-aung

NewspapersFrontier Myanmar

29 Dec 2018

PwC | December 2018

3. Weekly Investment News

23

PwC | December 2018

Weekly Key Investment NewsHeadlines

LSE-listed Myanmar Strategic Holdings picks 8% stake to fully own MS English

NEP Invites EOI Submissions for Solar Maintenance Centers

Taiwan's aluminium maker launches $13m Thilawa plant

24

PricewaterhouseCoopers Sri Lanka promotes Myanmar opportunities for Lankan firms

Bilateral trade with Indonesia up 11.8% in October

PwC | December 2018 25

LSE-listed Myanmar Strategic Holdings picks 8% stake to fully own MS English

LSE–listed Myanmar Strategic Holdings (MSH)has picked up a minority non-controlling stake inits existing investment, MS English Pte Ltd, froma former employee, representing 8 per cent of theissued share capital, according to its officialstatement. Following this acquisition, MSH nowfully owns MS English, which holds the rights tothe Wall Street English franchise. MSH previouslyheld 92 per cent in the company. MSH has beenstepping up its focus on Myanmar’s educationsector. It recently committed $1 million for thedevelopment of Yangon American InternationalSchool, which is due for completion in the secondquarter of 2019. In May, it set up Auston CollegeMyanmar as a joint venture with Auston Instituteof Management. The private school offersdiploma courses in engineering technology,construction project management andnetworking. “The Group continues to benefit froma benevolent macroeconomic environment withGDP growth rates of 6-8 per cent per annumexpected in Myanmar in the foreseeable future.While pursuing further growth opportunities,MSH’s management remains focused on

controlling costs and generating synergies acrossthe Group’s divisions, to further enhance theGroup’s prospects going forward,” said EnricoCesenni, chief executive officer of MyanmarStrategic Holdings. MSH reported a net loss of$0.90 million for the first half year endedSeptember 2018, down from $1.08 million in thesame period last year, as per its interim resultsreport In the first half period of 2018, thecompany clocked revenue of $1.86 million, upfrom $325,490 from the same period last year. Asper its revenue split, the company reported that71 per cent of it came from services whileeducation and hospitality contributed to 24 percent and 5 per cent respectively.During the period, the group raised $3.07 millionthrough a share issuance programme.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/lse-listed-myanmar-strategic-holdings-picks-8-stake-to-fully-own-ms-english-114894/

NewspapersDeal Street Asia

23 Dec 2018

PwC | December 2018 26

NEP Invites EOI Submissions for Solar Maintenance Centers

National Electrification Plan-NEP invitedsubmission of EOI (Expression of Interest) forestablishing solar power maintenance centers,according to the Department of RuralDevelopment under the Ministry of Agriculture,Livestock and Irrigation.Companies providing project maintenanceservices that are related to solar power are eligibleto apply for the tender for the projects ofestablishing the center.The tender winner company must provideservices establishing maintenance centers at thetownships where NEP projects locate.The interested companies can get the documentcalled “The call of EOI for Repair &Maintenance”providing the detail description ofthe projects at NEP’s websitewww.drdmyanmar.org or asked for it throughemail at neppmo.drd@gmail.com/drdnep.procurement@gmail.com. Companiesmust submit the EOI by January 16, 2019, inperson or through email.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/nep-invites-eoi-submissions-solar-maintenance-centers

NewspapersMyanmar Business Today

25 Dec 2018

PwC | December 2018 27

Taiwan's aluminium maker launches $13m Thilawa plant

Taiwan’s top aluminium maker has launched itsfirst manufacturing plant in Myanmar.Abba Aluminium Co, headquartered in Taoyuan,held the opening ceremony for its factory inThilawa Special Economic Zone (SEZ) onDecember 24.Initial investment amounted to US$13 millionand 300-500 local employees will be hired,according to Abba’s chair Chen Pai-chin. Theestimated production value is expected to reach$32.5 million per year.Mr Chen said the presence of a large number of“ethnic Chinese people in Myanmar” gives thecountry an edge over other CLMV economies(Cambodia, Laos, Myanmar and Vietnam) formanufacturers from Chinese-speaking countries.He added that Myanmar’s young workforce isanother attraction.Initiated by U Thein Sein’s government in 2013,Thilawa is the only SEZ in operation here,attracting $1.50 billion foreign investments so far.Owing to the government’s disappointinghandling of the economy, officials under the NLDadministration have resorted to highlighting the

former president’s SEZ project to showcaseeconomic progress. At the 2018 ASEAN Businessand Investment Summit in Singapore last month,Daw Aung San Suu Kyi praised Thilawa SEZ as “acrowning success”. “Investors from countries suchas Japan, the United States, Germany, France,Sweden, Australia, China, India, Singapore,Thailand and Taiwan have invested in the ThilawaSEZ,” she told a regional audience.taiwan-aluminium-thilawa-sez.jpgApart from Abba, there are four investors inThilawa which are associated with Taiwan:Myanmar Century Steel Structure, MarketechIntegrated Manufacturing Co, Minerva Co andCrecimiento Industrial Myanmar Co.In an exclusive interview with this paper, MrChen also elaborated on the difficulties facingTaiwanese businesses in the country.

Source: Myanmar Timeshttps://www.mmtimes.com/news/taiwans-aluminium-maker-launches-13m-thilawa-plant.html

NewspapersMyanmar Times

26 Dec 2018

PwC | December 2018 28

PricewaterhouseCoopers Sri Lanka promotes Myanmar opportunities for Lankan firms

Pricewaterhouse-COOPERS Sri Lanka recentlyheld a forum to promote investmentopportunities in Myanmar.A host of PwC regional experts and others sharedkey insights to investing in Myanmar, the taxenvironment, latest legal developments and theoutlook for infrastructure development in thisemerging Southeast Asian nation.Subjects and Speakers included Introduction to‘Doing Business in Myanmar’ by Ong ChaoChoon, Managing Partner, PwC Myanmar,Deputy Chairman and Advisory Leader, PwCSingapore and Janeshwar Pachigolla, ManagingDirector, PwC Myanmar; Myanmar InfrastructureOutlook – Challenges and Opportunities byBrandon Lye, Director, Capital Projects &Infrastructure, PwC Singapore; Myanmar’s TaxEnvironment – Managing the Impact on YourInvestment by Paul Cornelius, Tax Partner, PwCSingapore; and Investing in Myanmar – LatestLegal Developments by Minn Naing Oo,Managing Director, Allen & Gledhill Myanmar CoLtd., Partner, Allen & Gledhill LLP, Singapore.Ong Chao Choon said PwC helps foreign

businesses invest in Myanmar, transform andgrow local businesses and advice oninfrastructure and government. PwC Myanmar’smultiple competencies ensures provision ofintegrated end-to-end solution includingadvisory, risk assurance and tax services. He saidin 2012 PwC returned to Myanmar managed byPwC Singapore and has over 130 employees, thelargest out of the Big 4. To date the value of dealsclosed or funds raised was over $ 4 billion via 24transactions/initiatives.Among companies/investors helped are TPGacquisition of largest whiskey distillery GrandRoyal which was subsequently sold to Thai Bev;Unilever JV with EAC the leading personal andhome care business, Wilmar JV with Great WallGroup in sugar business, SC Capital a privateequity fund acquisition of MICASA Hotel inYangon, and investments into largest telecomfirm, education businesses.Source: Daily FThttp://www.ft.lk/business/PricewaterhouseCoopers-Sri-Lanka-promotes-Myanmar-opportunities-for-Lankan-firms/34-669620

NewspapersDaily FT

28 Dec 2018

PwC | December 2018 29

Bilateral trade with Indonesia up 11.8% in October

Trade between Myanmar and Indonesia inOctober, the first month of the 2018-2019 FiscalYear, exceeded US$90 million, an increase of $9.6million, or 11.77 per cent, from the correspondingperiod last year, the Ministry of Commercereported.In the first month of the current fiscal year,exports stood at $8.7 million and imports wereregistered at $82.8 million. In October last year,bilateral trade between the countries totalled$81.8 million, with exports worth $8.2 millionand imports of $73.6 million. Myanmar’s importsalways exceed exports in trade with the Republicof Indonesia. Compared with last year, the valueof exports and imports increased this year, withexports rising slightly by $0.5 million and importsrising by over $9 million.Myanmar’s imports from Indonesia includemedicine, paper, palm oil, steel, tobacco, andrubber, while its exports include agricultural andmarine products.According to the yearly statistical report of theministry, Myanmar-Indonesia trade in the mini-budget period from April through September

topped $520 million, an increase of $62 millionfrom the corresponding period last year. Bilateraltrade between the countries reached a peak ofover $1 billion in the 2017-2018 fiscal year.Myanmar-Indonesia trade was pegged at $827million in the 2016-2017 FY, $741 million in the2015-2016 FY, $636 million in the 2014-2015 FY,over $490 million in the 2013-2014 FY, $226million in the 2012-2013 FY, and $472 million inthe 2011-2012 FY.According to the Directorate of Investment andCompany Administration, Indonesianinvestments in Myanmar totalled $9.8 million inthe 2017-2018 fiscal year and $0.95 million in themini-budget period this year. There were no newinvestments from the ASEAN member state inOctober.

Source: Global New Light of Myanmarhttp://www.globalnewlightofmyanmar.com/bilateral-trade-with-indonesia-up-11-8-in-october/

NewspapersGlobal New Light of Myanmar

29 Dec 2018

PwC | December 2018

3. Weekly New Tenders

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PwC | December 2018

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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Mandalay City Development Committee: EOI - Prime 3.167 acres land in Mandalay owned by MCDC for redevelopment, call for tender with PPP will be made for the implementation of Mix-Used Development project, Closing Date: 21 February 2019

PwC | December 2018

Tenders (Multilateral organizations) List

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

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ADB: TA-9074 MYA: Capacity Development for Project Implementation - Environment Safeguard Consultant (49297-001), Closing Date: 4 January 2019 (Individual)

ADB: TA-8788 MYA: Transport Sector Reform and Modernization - 01 International Procurement and Contract Management Specialist (47087-001), Closing Date: 8 January 2019 (Individual)

ADB: TA-8788 MYA: Transport Sector Reform and Modernization - National Environment Specialist (47087-001), Closing Date: 9 January 2019 (Individual)

ADB: TA-8788 MYA: Transport Sector Reform and Modernization - National Communications Specialist (47087-001), Closing Date: 9 January 2019 (Individual)

PwC | December 2018

Tenders (Multilateral organizations) (cont’d) List

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

33

ADB: TA-8788 MYA: Transport Sector Reform and Modernization - National Road Safety Specialist (47087-001), Closing Date: 9 January 2019 (Individual)

ADB: TA-8788 MYA: Transport Sector Reform and Modernization - National Project Coordinator (47087-001), Closing Date: 9 January 2019 (Individual)

PwC | December 2018

4. MIC Permitted Projects

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PwC | December 2018

MIC Permitted Projects (Meeting 20, 2018)

35

No. Name of Company Type of Investment Form of Investment

1 Myanmar Brilliance Auto Co., LtdAssembling, manufacturing and sales of motor vehicles

Myanmar CitizenInvestment

2 Ocean Wave Communication Co., LtdNetwork Facilities Services, Network Services and Application Services

Wholly Foreign Owned

Source: DICA

PwC | December 2018

5. Upcoming Events

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PwC | December 2018

Upcoming Events (January 2019) List

Date Location Name of Event Sector Price Focus Points

17-18 Jan 2019 YangonElectric Power Exhibition & Conference

Power Free

“showcase your latest products andtechnologies in a high demand region. Withthis event you can raise your companyprofile and stay ahead of the competition.Network with the industry's most influentialplayers. Explore business opportunities andmeet new partners in dynamicsurroundings”

28 - 29 Jan2019

Naypyitaw Invest Myanmar Summit

Manufacturing, Garment,Power, Tourism, Education, Food Processing & Fishery, Healthcare, Infra & property

USD 500/person

“ to provide international and local investorsthe opportunity to discover businesspotential of Myanmar as well as a platform tomeet with the Central and RegionalGovernment officials”

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

PwC | December 2018

Upcoming Events (February 2019) List

Date Location Name of Event Sector Price Focus Points

26-27 Feb 2019 YangonMobile Money & Agent Banking Summit

Banking and Finance

TBC

“A Special Focus on Myanmar plus EmergingOpportunities from the regional DigitalTransformation”

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

© 2018 PricewaterhouseCoopers Myanmar Co Ltd. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Myanmar Co Ltd, which is part of the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

www.pwc.com/mm

PwC Myanmar Weekly Business Intelligence Publication

For further information please contact:

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

Brandon LyeDirectorbrandon.ys.lye@sg.pwc.com

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