PWC MYANMAR WEEKLY BUSINESS INTELLIGENCE - ISSUE 141 28 DECEMBER 2018
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www.pwc.com/mm PwC Myanmar Weekly Business Intelligence Issue 141 28 December 2018
Disclaimer PricewaterhouseCoopers Myanmar Co., Ltd helps organisations and individuals create the value they’re looking for. We’re a member of the PwC network of firms in 158 countries with more than 250,000 people who are committed to delivering quality in assurance, advisory and tax services. Tell us what matters to you and find out more by visiting us at www.pwc.com/mm. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. © 2018 PricewaterhouseCoopers Myanmar Co., Ltd, a company duly established and operating under the laws of Myanmar. All rights reserved. PwC refers to the Myanmar member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. The information contained in this publication is for general guidance on matters of interest only and is not meant to be comprehensive. The application and impact of laws can vary widely based on the specific facts involved. Before taking any action, please ensure that you obtain advice specific to your circumstances from your usual PricewaterhouseCoopers Myanmar Co., Ltd client service team or your other tax advisers. PwC | December 2018 2
1. Weekly Key Financial & Business News PwC | December 2018 3
Weekly Key Financial & Business News
Headlines
Telenor’s 4G/LTE Coverage Reaches 90% of all Townships in Myanmar
MPT Announces New Data Pack Offering Premium Entertainment Content
Three Million Additional Vehicles Come to Myanmar Since Import Policy Change
MLCA Signs Agreement with Real Estate Associations for Quality Apartments
Average inflation rate accounts for 6.66 % in November this year
PwC | December 2018 4Weekly Key Financial & Business News
Headlines
Yangon must safeguard the environment
Two steps forward, one stride back
A year of despair and despondency
Fuel oil prices fall by 20% to 34%
Rice export declines within eight months
PwC | December 2018 5Newspapers
Myanmar Business
Today Telenor’s 4G/LTE Coverage Reaches 90% of all
Townships in Myanmar
25 Dec 2018
Telenor Myanmar has announced that its 4G/LTE their increasing need for speedy and reliable
network now covers more than 300 townships, data,”said Sharad Mehrotra, Chief Executive
which is 90% of the whole country. In September, Officer of Telenor Myanmar.
Telenor set an ambitious goal of bringing 4G/LTE “In Telenor, we are serious about network quality.
network to 300 townships by the end of the year. To maintain the best network quality, our
Now, the goal is achieved two weeks ahead of plan technology team ensures that we have coverage in
with over 5,000 sites in operation. In 2019, more than a limited part of the township before
Telenor will have more than 6,000 sites we are satisfied with our 4G/LTE roll-out in the
broadcasting 4G/LTE, to provide customers with area. We take pride in designing a high-quality
the country’s best data experience. mobile network that gives Myanmar people the
As Bawlakhe, Hopang, Shadaw, Lukkaing, best experience when watching videos, playing
Sidoktaya, Mingin and Hkamti townships have games or listening to music on their phones,”said
recently been added to Telenor’s 4G/LTE Jai Prakash, Chief Technology Officer of Telenor
network, customers in those townships have Myanmar. Telenor Myanmar officially launched
joined the increasing community of people its 4G/LTE services since June 2017 and at
experiencing the affordable and innovative present, its 2G, 3G and 4G network serves 18
4G/LTE services offered by Telenor Myanmar. million customers in all states, regions and
“Telenor is working tirelessly to deliver a high- territories. In April 2017, Telenor Myanmar was
quality mobile phone experience to everyone in recognized as the fastest network in the country
the country. That is why connecting more than as received Ookla’s Speedtest Award…
300 townships in Myanmar to our 4G/LTE Source: Myanmar Business Today
network is a significant milestone for the https://www.mmbiztoday.com/articles/telenor-
company. I am confident that this achievement s-4glte-coverage-reaches-90-all-townships-
will truly benefit our customers, and will satisfy myanmar
PwC | December 2018 6Newspapers
Myanmar Business
Today MPT Announces New Data Pack Offering Premium
Entertainment Content
25 Dec 2018
MPT announced the launch of its new data pack also downloadable as the MPT Viu Data Pack
offer —the first of its kind in Myanmar —which gives subscribers full premium access to the
allows users to enjoy thousands of exciting movies application.
and TV shows for free through the Viu mobile app To subscribe to the MPT Viu data pack, simply
at an affordable data rate of just 1 Ks/MB. dial *8002#. After successfully subscribing,
Launched in partnership with Viu, the first and customers will receive a confirmation message via
only OTT service with all international content SMS with 500 MB of Viu data and a unique code
with 100% Myanmar subtitles and available for for Viu premium subscription. Subscribers then
download, this content data bundle allows users need to open the Viu app and enter the code to
to enjoy popular series including the latest start enjoying their favorite movies and shows for
episodes of Korean hits such as Running Man, 24 hours. This data pack will only charge
Empress Dignity, and many others. subscribers 1 Ks/MB, costing 499 Ks for 500 MB
Once subscribed, MPT users can download the for the day.
Viu app and start watching their favorite shows For more information on the MPT Viu data pack,
on MPT’s nationwide high speed 3G/LTE+ please call 106. Users may also visit MPT’s official
network immediately with no additional website www.mpt.com.mm
subscription fees. Along with popular Korean
dramas and variety series, Viu also features great
shows and movies from other countries such as
India, Thailand, Japan, and Myanmar. Selected
television series from Korea and Japan are Source: Myanmar Business Today
available on the Viu app with Myanmar subtitles https://www.mmbiztoday.com/articles/mpt-
within 24 hours of original broadcast in the announces-new-data-pack-offering-premium-
respective countries. All the amazing videos are entertainment-content
PwC | December 2018 7Newspapers
Myanmar Business
Today Three Million Additional Vehicles Come to Myanmar
Since Import Policy Change
25 Dec 2018
Since Myanmar eased its auto import policy, consignment program for home use must be
allowing individual auto imports in 2013, the between 2016 and 2019, and only left-hand drive
number of vehicles in the country has surged by vehicles are allowed to import. Model year of
three million, according U Thar Oo, Deputy trucks as well as Mini Bus, City Bus and Express
Minister of the Ministry of Transportation and Bus must be between 2015 and 2019, and they
Telecommunications. also must be left-hand drive.
“Because of the eased auto-import policy, the The policy change, however, is seen not to have
number of vehicles is increasing rapidly each year. much impact on the local auto market.
In 2013, there were four million vehicles in In 2016, the Yangon Regional Government, in an
Myanmar, and it’s reached seven million by effort to tackle the serious traffic congestion in
October 2018. Meaning, the number of vehicles Yangon, stopped issuing Yangon license in order
has surged by three million,’’he added. to reduce the pace of additional numbers of
The Government issues an auto-import policy on vehicles on the road. In order to import a car to be
a yearly basis. For instance, in 2015, you could driven in Yangon, you must have an existing
import vehicles between 2006 and 2010 model Yangon license. However, they do issue licensees
years. In 2016, brand new autos had to be left- for locally manufactured and assembled vehicles.
hand drive vehicles. In 2017, the model year range
was adjusted to between 2014 and 2017, and
finally in 2018 all imported vehicles, new and
used, had to be left hand drive.
The policy for 2019 was issued on October 30, Source: Myanmar Business Today
2018. https://www.mmbiztoday.com/articles/three-
According to auto import policy for 2019, the million-additional-vehicles-come-myanmar-
model year of vehicles imported under import-policy-change
PwC | December 2018 8Newspapers
Myanmar Business
Today MLCA Signs Agreement with Real Estate Associations
for Quality Apartments
25 Dec 2018
Myanmar Licensed Constructors Association Myanmar Licensed Constructors Association is
signed an agreement with Myanmar Engineering planning to sign agreements with the Bank
Society, Myanmar Real Estate Service Association Association, Insurance Association and
and Myanmar Constructors Association to Independent Lawyers’Association of Myanmar.
improve the quality of apartments being
constructed in the country.
According to the agreement, when a member
association receives foreign experts, they must
arrange a meeting with Myanmar Licensed
Constructors Association as well as providing
technological assistance and training.
“Because of this, we will be able to meet foreign
experts, when they visit Myanmar. We can work
with other associations regarding construction.
The construction sector will develop if we, the
associations, work together in the construction
process such as building high quality affordable
housing,’’U Lah Zel, General Secretary of
Myanmar Licensed Constructors Association, told
Myanmar Business Today.
Thanks to the agreement, MLCA can discuss and Source: Myanmar Business Today
consult with other associations when https://www.mmbiztoday.com/articles/mlca-
implementing a construction project. signs-agreement-real-estate-associations-quality-
In addition to the three associations it signed, apartments
PwC | December 2018 9Newspapers
Eleven Myanmar
Average inflation rate accounts for 6.66 % in
November this year
26 Dec 2018
The average inflation rate accounted for 6.66 % in November in order to calculate consumer indexes
November and it also continued rising a little in and inflation. The poll sought data from 32,669
October. The inflation rate increased for eight households.
consecutive months during this year, said a The inflation calculation was based on 2006 in
source of Central Statistics Organisation. the past. Now is the different matter and it is
The average inflation rate remained 6.66 % until based on 2012. It is the base year.
November in 2018. The October inflation rate The inflation rate saw a progress in the first short-
accounted for 6.34 %. In comparison with these term of five year project from 2011-2012 to 2015-
two figures, the inflation rate rose back. From 2016 FY. The inflation rate continued rising in the
April to November, the inflation rate increased for second short-term five year project from 2016-
eight consecutive months. 2017 to 2020-2021 FY.
The inflation rate based on the calculation in 2012 To be able to control the inflation rate, it is
accounted for 6.66 % until November 2018. The necessary to deal with the matters relating to
year-on year inflation accounted for 8.33 %. financial policy, monetary policy, trade policy and
During November in 2018, Mandalay reached at foreign currency policy.
the top of inflation chart with 11.50 %, followed by Based on 2006, the inflation rate accounted for
Rakhine State with 10.78 % and Magway with 9.11 2.82 % in 2011-2012 FY, 2.85 % in 2012-2013 FY,
%. 5.72 % in 2013-2014 FY and 5.90 % in 2014-2015
During November in 2018, Magway Region FY respectively.
reached at the top of year-on-year inflation chart
with 12.36 %, followed by Ayeyawady Region with Source: Eleven Myanmar
4.82 %. https://elevenmyanmar.com/news/average-
The CSO conducted a poll on household income inflation-rate-accounts-for-666-in-november-
and consumption in 82 townships during 2012 this-year
PwC | December 2018 10Newspapers
Myanmar Times
Yangon must safeguard the environment
28 Dec 2018
Recently a Malaysian friend who visited Yangon Since coming to power, the authorities have
had this to say about the place: “Yangon is a pitched numerous plans to make Yangon greener,
quaint little city with lots of pretty colonial safer and smarter.
buildings, beautiful parks and marvellous gilded Yet, basic hygiene in the city is still lacking, and it
temples.” is common to see rubbish strewn across public
There’s more though. She added, “Unfortunately, areas and in back alleys. That, in turn, has drawn
those buildings are also dilapidated, most places all manner of vermin and interfered with healthy
are rundown and there’s rubbish everywhere. living conditions. But businesses can take the
Although among the loveliest, the Myanmar initiative to champion good environmental
people are among the worse litterbugs I’ve seen in practices as part of their corporate social
my travels around this region.” responsibility. There are so many simple ways
That reminded me of an email a Yangon source responsible businesses can make a difference to
sent me earlier this year. My source told me many the environment. Across the city, people dispose
businesses have the funds to clean up and of plastic bottles, boxes and cutlery without a
conserve the environment, such as by sponsoring second thought. Single-use foam containers for
rubbish bins and holding campaigns to assist with takeaway meals and beverages are common. Food
rubbish collection, but that many of them end up wrappers and straws litter the pavements and
deciding not to for fear of upsetting the Yangon waterways. With that in mind, holding
City Development Committee (YCDC). educational programmes on rubbish disposal is
One local firm is said to have hundreds of rubbish just one example of how businesses can take the
bins in storage but is reluctant to put them in initiative to save the environment.
public places like bus shelters because it would Source: Myanmar Times
involve developing a system with the YCDC to https://www.mmtimes.com/news/yangon-must-
empty the bins daily. safeguard-environment.html
PwC | December 2018 11Newspapers
Myanmar Times
Two steps forward, one stride back
28 Dec 2018
The Myanmar economy moved forward in 2018, weighing on business margins, GDP is forecast to
during which it opened up several industries to to slow from 6.8 percent last year to 6.2pc this
foreign investors and raised efforts to upgrade year, according to the World Bank.
and organise the avenues through which funds On the whole though, experts such as those at the
are channelled into needed areas of the economy. World Bank and International Monetary Fund
During the year, the government also announced (IMF) said Myanmar made progress in 2018, but
new plans and enforced legislation aimed at agreed that the risks are rising for the economy in
drawing investments and making it easier for the months ahead. Still, GDP is projected to
companies to do business. expand in the years ahead, if the government’s
Exports, led by the garment and agriculture plans are properly executed.
sectors, grew during the first half of the year, As 2018 draws to a close, we have compiled the
propelled by a more favourable exchange rate. top five developments that helped drive the
Higher jade sales to China also played a part. As a economy forward this year and the five that held
result, the trade deficit has narrowed to US$300 it back from securing better growth.
million in the first half of the year, a five-year low. Among the positive steps taken is the
But confidence in the economy has also fallen liberalisation of the retail and education sectors.
among existing businesses and as the Rakhine On April 20, the Myanmar Investment
crisis continues to play out. During the first half of Commission (MIC) issued Notification 7/2018,
this year, approved foreign direct investments permitting foreigners to fully own and operate
(FDI) totalled just $1.7 billion, compared to $4.1 private schools in Myanmar for the first time.
billion during the same period in the previous
fiscal year. Source: Myanmar Times
In addition, with global economic conditions https://www.mmtimes.com/news/two-steps-
becoming more uncertain and a weaker currency forward-one-stride-back.html
PwC | December 2018 12Newspapers
Myanmar Times
A year of despair and despondency
28 Dec 2018
2018 is the year in which Myanmar’s failure to Aung San Suu Kyi by International Crisis Group’s
execute key reforms has plunged the country into August report. The same assessment could be said
crises and chaos, overshadowing the considerable of Myanmar.
progress made in some areas. It would take years, In 2018, business confidence has sunk to a three-
if not decades, before we climb out of the abyss year low; approved FDI has fallen short of the
into which we have sunk. official estimates by a wide margin; and the
The National League for Democracy (NLD) party business community is despairingly frustrated
swept into office in 2016 with its mantra of with the protectionist policies and lack of reforms.
“change”. Although that term was vaguely defined Myanmar’s growth forecast is downgraded by the
in their election manifesto, it is fair to assume that World Bank by 0.5 percentage points to 6.2pc in
the electorate wanted change for the better, and 2018-19. Tourist arrivals stagnated (0.7pc) for the
they wanted positive change for the many. first nine months of this year compared with an
As the NLD-led administration passed midpoint increase of 7.1pc in 2017.
of their five-year term in October, it is clear the While the incumbent administration repeatedly
Myanmar people are getting none of what they pledged to elevate Myanmar into the top 100 in
wanted, or anywhere near that. 2018 is shaped by the Ease of Doing Business ranking by 2020, the
the aftermath of the advent of Rakhine. We were country failed to improve at all under Daw Suu,
chosen as the Economist’s “country of the year” in being buried at 171st. In comparison, China, India
2015. The government’s response to the crisis, and Malaysia all made significant improvements
coupled with the failure on the economic front, in the index.
has turned Myanmar into the cautionary tale of
how things could go wrong. Source: Myanmar Times
“Rarely has the reputation of a leader fallen so far, https://www.mmtimes.com/news/year-despair-
so fast” was the verdict of State Counsellor Daw and-despondency.html
PwC | December 2018 13Newspapers
Eleven Myanmar
Fuel oil prices fall by 20% to 34%
28 Dec 2018
Local fuel prices have decreased by 20 percent to September 10, US$70 on September 21 and
over 34 percent since October 10 due to US$76 on October 3. The price decreased to
decreasing global oil prices and slight fluctuation around US$42 on December 24, and reached
in dollar price, according to local filling stations. around US$45 on December 27.
Fuel prices have fallen to K695 for one litre of 92 On December 27 in local market, maximum prices
Ron octane, K760 for one litre of 95 Ron octane, fixed by Myanmar Oil Importers and Distributers
K870 for one litre of diesel and K875 for one litre Association were K870 for one liter of diesel
of premium diesel. (K3,949 per gallon), K875 for one liter of
When global oil prices got high and dollar price premium diesel (K3,972 per gallon), K695 for one
appreciated, local fuel prices increased liter of 92 Ron octane (K3,155 per gallon) and
continuously with 21 percent in four months from K760 for one liter of 95 Ron octane (K3,450 per
June to October this year. At that time, one litre gallon).
of 92 Ron octane was priced K1,065, one litre of In comparison with prices on October 10 this
95 Ron octane K1,115, one litre of diesel K1,095 year, in over two months, prices have decreased
and one litre of premium diesel K1,105. by 20 percent for diesel, 21 percent for premium
Since the second week of October in 2017, oil diesel, around 34 percent for 92 Ron octane and
prices per barrel had significantly increased with around 31 percent for 95 Ron octane.
US$49 in early August, US$51 in early October,
US$55 in early November, US$58 in early
December, 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. The Source: Eleven Myanmar
price decreased to US$69 on August 7 and US$65 https://elevenmyanmar.com/news/fuel-oil-
on August 20. But it increased again to US$67 on prices-fall-by-20-to-34
PwC | December 2018 14Newspapers
Eleven Myanmar
Rice export declines within eight months
28 Dec 2018
Myanmar only exported over 1.5 million tons of generalized scheme of preferences (GSP) for three
rice and broken rice within eight months from years for rice export from Myanmar, according to
April 1 till December 14, according to Myanmar the MRF.
Rice Federation (MRF). The EU is planning to collect €175 per ton of long
Myanmar earned about US$288 million from grain rice in 2019, €150 per ton of long grain rice
more than 800,000 tons of rice and broken rice in 2020 and €125 per ton of long grain rice in
export through border trade routes and over 2021 as import tax.
US$240 million from over 700,000 tons of rice Myanmar is exporting rice to EU member
and broken rice export via maritime trade, it said. countries and African countries via maritime
The MRF expected to export up to two million trade routes and China to Muse 105 mile border
tons of rice and broken rice in mini budget period, trade route.
said Ye Min Aung, General Secretary of the MRF
during a ceremony to sign MoU between the
Union of Myanmar Federation of Chambers of
Commerce and Industry (UMFCCI) and
International Finance Corporation (IFC).
Myanmar is exporting rice and broken rice with
ships and China via Muse 105 mile border trade
center.
Myanmar expanded its rice export to new markets
in 2017-18 FY and about 3.6 million tons of rice
was exported. It broke the record for over 50 Source: Eleven Myanmar
years. https://elevenmyanmar.com/news/rice-export-
European Union (EU) is planning to withdraw declines-within-eight-months
PwC | December 2018 152. Weekly Key Policy News PwC | December 2018 16
Weekly Key Policy News
Headlines
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
Yangon investment committee allows more investments
‘The project bank will enhance transparency and competitiveness’: U Set Aung
PwC | December 2018 17Newspapers
Myanmar Business
Today Government to Raise Taxes on Imports
25 Dec 2018
In an effort to reduce imports, the Ministry of produce value added products locally and export
Planning and Finance will levy more tax on their products.
imports instead of placing tax on locally produced By doing so, raw material importers can do
products with high quality that can replace the storing and taking out inventories easily as well as
imported products, according to U Soe Win, distributing the materials as the market demands
Union Minister of the Ministry of Planning and while reducing the prices and creating jobs, U Soe
Finance, during the regular meeting between vice Win explained.
president of Myanmar and local businessmen Myanmar is hoping to gradually reduce trade
held at UMFCCI on December 14. deficit, which it sees every year, by improving
“With the aim of nurturing the manufacturing local manufacturing. Myanmar saw $5.2 billion of
sector for import substitution, we will raise tax on trade deficit in the 2017 Fiscal Year, $3.8 billion
the products imported even though the same kind in 2018 Fiscal Year, $1.03 billion in April-
of products produced locally are present in the September transitional Fiscal Year of 2018, and
market,’’he said. $0.33 billion in October of the 2019 Fiscal Year.
However, he did not identify the imported
products on which more tax will be placed.
For import of raw materials which are necessary
for local industry, the ministry has plans to lower
the tax for a certain period, he added.
He also explained the plan of establishing
international standard customs warehouse in line
with existing international laws and procedures to Source: Myanmar Business Today
store imported raw materials and streamline the https://www.mmbiztoday.com/articles/governm
importation process for local manufacturers to ent-raise-taxes-imports
PwC | December 2018 18Newspapers
Myanmar Business
Today UMFCCI Requests Government to Allow Exchange for
Chinese Yuan and South Korea Won
25 Dec 2018
The Union of Myanmar Federation of Chambers Some businessmen send Myanmar kyat to
of Commerce and Industry (UMFCCI) made a Kokang in Northern Shan State, where they
request to the Private Sector Development exchange for Yuan. In Mu-se, the border town,
Committee chaired by Vice President U Myint people are conducting a currency exchange from a
Swe to allow providing exchange services for the simple chair and a table,’’said Ko Soe Min, a
Chinese Yuan and Korean Won. resident in Lasho.
U Kyaw Min Hlaing, President of Hotel and Currently, Myanmar allows the U.S. dollar,
Tourism Working Committee of MBI under the Singapore dollar, Euro, Ringgit, and Baht in
UMFCCI, argued that, if Myanmar offers a visa exchange centers, but does not allow other
free program to other countries with an aim of currencies. However, there are illegal exchanges
boosting tourists, we should provide a currency for unapproved currencies.
exchange for those countries too. In addition to currency exchange, UMFCCI also
UMFCCI urged the government to allow urged government to allocate a stable budget in
exchanges for the currencies of the countries, order to boost tourism marketing activities, and
which are enjoying visa free benefit granted by to add inbound pilgrim tours into tourism by law
Myanmar, because there are illegal exchanges for while letting them to renew the license.
those currencies.
“The authorities said that they are in talks with
counterparts of the other countries and we will
know about it soon,’’U Kyaw Min Hlaing added.
“A Chinese Yuan stands at about 220 Myanmar Source: Myanmar Business Today
kyats. In Lasho in Northern Shan State, you can https://www.mmbiztoday.com/articles/umfcci-
exchange Yuan at a highway station, but you can’t requests-government-allow-exchange-chinese-
exchange a large amount, only a few thousand. yuan-and-south-korea-won
PwC | December 2018 19Newspapers
Myanmar Times
Businesses “wait and see” as govt plans for GAD
transfer
26 Dec 2018
The business community will “wait and see” if the “With 36,080 staff spread across the country, the
transfer of the General Administration GAD maintains a ubiquitous presence built
Department (GAD) to civilian control improves around its administrators, particularly at the all-
the bureaucracy and regulatory environment for important township level,” the report stated. The
those doing business outside major cities. department has a very extensive remit, ranging
The President Office last week announced that the from maintaining law and order to collecting
GAD under the military-controlled Ministry of taxes and managing land. Many of its officers are
Home Affairs is set to be shifted to the Ministry of associated with the military and they work closely
the Union Government Office, which is headed by with the security forces, the police and judiciary
U Min Thu, who was until recently a deputy across the country.
minister in the President's Office. Since the transition in 2011, its role has expanded
U Zaw Htay, the President’s Office spokesperson, to include providing staff for sub-national
told the press on December 22 that “the policy executives and legislatures. Businesses, however,
has been set” and the government “will work often find it difficult to work with GAD in remote
according to the procedures to implement it.” The regions.
military still has control over defence, border Dr Matthew Arnold, the TAF country
affairs and home affairs ministries without the representative in Myanmar, described the
oversight of civilian authorities. importance of the GAD to Myanmar’s governance
Traditionally, the home affairs ministry appoints as “exceptional”.
the GAD at each level of government, which
covers more than 16,000 local districts and
townships. An Asia Foundation (TAF) report in Source: Myanmar Times
2014 described the GAD as the “backbone of https://www.mmtimes.com/news/businesses-
Myanmar’s public administration”. wait-and-see-govt-plans-gad-transfer.html
PwC | December 2018 20Newspapers
Eleven Myanmar
Yangon investment committee allows more
investments
28 Dec 2018
Yangon region investment committee allowed They are followed by Thailand with US$12
over US$37 million and Ks3.493 billion worth of million, Vietnam with US$10 million, Hong Kong
investments which can create more than 2,500 with US$7 million, Taiwan with US$6 million and
job opportunities in the region, according to the Japan with US$5 million respectively.
committee. Myanmar is facing other challenges to promote
The committee approved them during its meeting investment and the halted purchasing power
held at Yangon Region government office on parity over the world is affecting serious
December 24. consequences on exports and foreign direct
The committee approved 14 foreign investments investments which is targeting for export
from five countries and two local investments in products, according to Myanmar Investment
the region. It can create job opportunities for Promotion Plan (MIPP).
more than 14,000 people. The increase of foreign
investment in industrial sector is over US$5
million.
Foreign investment is reached to about US$466
million from October 1 till at the end of November
in this fiscal year and transportation sector
topped the list of foreign investment with US$171
million followed by production sector with
US$100 million.
Singapore topped the list of foreign investors with
US$357 million followed by China with US$54 Source: Eleven Myanmar
million, according to Directorate of Investment https://elevenmyanmar.com/news/yangon-
and Companies Administration (DICA). investment-committee-allows-more-investments
PwC | December 2018 21Newspapers
Frontier Myanmar
‘The project bank will enhance transparency and
competitiveness’: U Set Aung
29 Dec 2018
The Ministry of Planning and Finance is mechanism for implementing these plans.
preparing to launch an interactive and publicly The MSDP policy document doesn’t just contain
accessible online “project bank” containing policy directions and trajectories, it also contains
priority initiatives that have been screened and policy implementation metrics, in which 251
approved by the government for their positive strategic action plans have already been
impact on economic and social development. identified. These action plans must be further
The initiative aims to overhaul the way in which broken down into implementable projects and
ministries identify and tender projects, and will programmes.
provide a new framework for public-private The projects and programs will go through
partnerships and enable the private sector to different assessment systems in order to find out
invest in state assets. whether they are relevant to the strategic plans of
Deputy Minister for Finance and Planning U Set the country. It is very important that all projects
Aung spoke to Frontier about the alignment of the [in which the government is involved] go through
project bank with the Myanmar Sustainable rigorous, stringent assessments. Only those that
Development Plan (2018-2030), its likely impact pass will qualify to be implemented through
on government procurement and how it dovetails multiple financing mechanisms.
with other state-led initiatives, such as the China- How are government ministries involved in this
Myanmar Economic Corridor. process? What, for example, will they now have to
What is the project bank and why is it being do differently?
developed?
It is really important that the strategic action Source: Frontier Myanmar
plans identified in the Myanmar Sustainable https://frontiermyanmar.net/en/the-project-
Development Plan (MSDP) are implemented in a bank-will-enhance-transparency-and-
proper way. The project bank is a very significant competitiveness-u-set-aung
PwC | December 2018 223. Weekly Investment News PwC | December 2018 23
Weekly Key Investment News
Headlines
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
PricewaterhouseCoopers Sri Lanka promotes Myanmar opportunities for Lankan firms
Bilateral trade with Indonesia up 11.8% in October
PwC | December 2018 24Newspapers
Deal Street Asia
LSE-listed Myanmar Strategic Holdings picks 8%
stake to fully own MS English
23 Dec 2018
LSE–listed Myanmar Strategic Holdings (MSH) controlling costs and generating synergies across
has picked up a minority non-controlling stake in the Group’s divisions, to further enhance the
its existing investment, MS English Pte Ltd, from Group’s prospects going forward,” said Enrico
a former employee, representing 8 per cent of the Cesenni, chief executive officer of Myanmar
issued share capital, according to its official Strategic Holdings. MSH reported a net loss of
statement. Following this acquisition, MSH now $0.90 million for the first half year ended
fully owns MS English, which holds the rights to September 2018, down from $1.08 million in the
the Wall Street English franchise. MSH previously same period last year, as per its interim results
held 92 per cent in the company. MSH has been report In the first half period of 2018, the
stepping up its focus on Myanmar’s education company clocked revenue of $1.86 million, up
sector. It recently committed $1 million for the from $325,490 from the same period last year. As
development of Yangon American International per its revenue split, the company reported that
School, which is due for completion in the second 71 per cent of it came from services while
quarter of 2019. In May, it set up Auston College education and hospitality contributed to 24 per
Myanmar as a joint venture with Auston Institute cent and 5 per cent respectively.
of Management. The private school offers During the period, the group raised $3.07 million
diploma courses in engineering technology, through a share issuance programme.
construction project management and
networking. “The Group continues to benefit from
a benevolent macroeconomic environment with
GDP growth rates of 6-8 per cent per annum Source: Deal Street Asia
expected in Myanmar in the foreseeable future. https://www.dealstreetasia.com/stories/lse-
While pursuing further growth opportunities, listed-myanmar-strategic-holdings-picks-8-stake-
MSH’s management remains focused on to-fully-own-ms-english-114894/
PwC | December 2018 25Newspapers
Myanmar Business
Today NEP Invites EOI Submissions for Solar Maintenance
Centers
25 Dec 2018
National Electrification Plan-NEP invited
submission of EOI (Expression of Interest) for
establishing solar power maintenance centers,
according to the Department of Rural
Development under the Ministry of Agriculture,
Livestock and Irrigation.
Companies providing project maintenance
services that are related to solar power are eligible
to apply for the tender for the projects of
establishing the center.
The tender winner company must provide
services establishing maintenance centers at the
townships where NEP projects locate.
The interested companies can get the document
called “The call of EOI for Repair &
Maintenance”providing the detail description of
the projects at NEP’s website
www.drdmyanmar.org or asked for it through
email at neppmo.drd@gmail.com/
drdnep.procurement@gmail.com. Companies
must submit the EOI by January 16, 2019, in Source: Myanmar Business Today
person or through email. https://www.mmbiztoday.com/articles/nep-
invites-eoi-submissions-solar-maintenance-
centers
PwC | December 2018 26Newspapers
Myanmar Times
Taiwan's aluminium maker launches $13m Thilawa
plant
26 Dec 2018
Taiwan’s top aluminium maker has launched its former president’s SEZ project to showcase
first manufacturing plant in Myanmar. economic progress. At the 2018 ASEAN Business
Abba Aluminium Co, headquartered in Taoyuan, and Investment Summit in Singapore last month,
held the opening ceremony for its factory in Daw Aung San Suu Kyi praised Thilawa SEZ as “a
Thilawa Special Economic Zone (SEZ) on crowning success”. “Investors from countries such
December 24. as Japan, the United States, Germany, France,
Initial investment amounted to US$13 million Sweden, Australia, China, India, Singapore,
and 300-500 local employees will be hired, Thailand and Taiwan have invested in the Thilawa
according to Abba’s chair Chen Pai-chin. The SEZ,” she told a regional audience.
estimated production value is expected to reach taiwan-aluminium-thilawa-sez.jpg
$32.5 million per year. Apart from Abba, there are four investors in
Mr Chen said the presence of a large number of Thilawa which are associated with Taiwan:
“ethnic Chinese people in Myanmar” gives the Myanmar Century Steel Structure, Marketech
country an edge over other CLMV economies Integrated Manufacturing Co, Minerva Co and
(Cambodia, Laos, Myanmar and Vietnam) for Crecimiento Industrial Myanmar Co.
manufacturers from Chinese-speaking countries. In an exclusive interview with this paper, Mr
He added that Myanmar’s young workforce is Chen also elaborated on the difficulties facing
another attraction. Taiwanese businesses in the country.
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. Source: Myanmar Times
Owing to the government’s disappointing https://www.mmtimes.com/news/taiwans-
handling of the economy, officials under the NLD aluminium-maker-launches-13m-thilawa-
administration have resorted to highlighting the plant.html
PwC | December 2018 27Newspapers
Daily FT
PricewaterhouseCoopers Sri Lanka promotes
Myanmar opportunities for Lankan firms
28 Dec 2018
Pricewaterhouse-COOPERS Sri Lanka recently businesses invest in Myanmar, transform and
held a forum to promote investment grow local businesses and advice on
opportunities in Myanmar. infrastructure and government. PwC Myanmar’s
A host of PwC regional experts and others shared multiple competencies ensures provision of
key insights to investing in Myanmar, the tax integrated end-to-end solution including
environment, latest legal developments and the advisory, risk assurance and tax services. He said
outlook for infrastructure development in this in 2012 PwC returned to Myanmar managed by
emerging Southeast Asian nation. PwC Singapore and has over 130 employees, the
Subjects and Speakers included Introduction to largest out of the Big 4. To date the value of deals
‘Doing Business in Myanmar’ by Ong Chao closed or funds raised was over $ 4 billion via 24
Choon, Managing Partner, PwC Myanmar, transactions/initiatives.
Deputy Chairman and Advisory Leader, PwC Among companies/investors helped are TPG
Singapore and Janeshwar Pachigolla, Managing acquisition of largest whiskey distillery Grand
Director, PwC Myanmar; Myanmar Infrastructure Royal which was subsequently sold to Thai Bev;
Outlook – Challenges and Opportunities by Unilever JV with EAC the leading personal and
Brandon Lye, Director, Capital Projects & home care business, Wilmar JV with Great Wall
Infrastructure, PwC Singapore; Myanmar’s Tax Group in sugar business, SC Capital a private
Environment – Managing the Impact on Your equity fund acquisition of MICASA Hotel in
Investment by Paul Cornelius, Tax Partner, PwC Yangon, and investments into largest telecom
Singapore; and Investing in Myanmar – Latest firm, education businesses.
Legal Developments by Minn Naing Oo, Source: Daily FT
Managing Director, Allen & Gledhill Myanmar Co http://www.ft.lk/business/PricewaterhouseCoop
Ltd., Partner, Allen & Gledhill LLP, Singapore. ers-Sri-Lanka-promotes-Myanmar-opportunities-
Ong Chao Choon said PwC helps foreign for-Lankan-firms/34-669620
PwC | December 2018 28Newspapers
Global New Light of
Myanmar Bilateral trade with Indonesia up 11.8% in October
29 Dec 2018
Trade between Myanmar and Indonesia in topped $520 million, an increase of $62 million
October, the first month of the 2018-2019 Fiscal from the corresponding period last year. Bilateral
Year, exceeded US$90 million, an increase of $9.6 trade between the countries reached a peak of
million, or 11.77 per cent, from the corresponding over $1 billion in the 2017-2018 fiscal year.
period last year, the Ministry of Commerce Myanmar-Indonesia trade was pegged at $827
reported. million in the 2016-2017 FY, $741 million in the
In the first month of the current fiscal year, 2015-2016 FY, $636 million in the 2014-2015 FY,
exports stood at $8.7 million and imports were over $490 million in the 2013-2014 FY, $226
registered at $82.8 million. In October last year, million in the 2012-2013 FY, and $472 million in
bilateral trade between the countries totalled the 2011-2012 FY.
$81.8 million, with exports worth $8.2 million According to the Directorate of Investment and
and imports of $73.6 million. Myanmar’s imports Company Administration, Indonesian
always exceed exports in trade with the Republic investments in Myanmar totalled $9.8 million in
of Indonesia. Compared with last year, the value the 2017-2018 fiscal year and $0.95 million in the
of exports and imports increased this year, with mini-budget period this year. There were no new
exports rising slightly by $0.5 million and imports investments from the ASEAN member state in
rising by over $9 million. October.
Myanmar’s imports from Indonesia include
medicine, paper, palm oil, steel, tobacco, and
rubber, while its exports include agricultural and
marine products.
According to the yearly statistical report of the Source: Global New Light of Myanmar
ministry, Myanmar-Indonesia trade in the mini- http://www.globalnewlightofmyanmar.com/bilat
budget period from April through September eral-trade-with-indonesia-up-11-8-in-october/
PwC | December 2018 293. Weekly New Tenders PwC | December 2018 30
Tenders (Myanmar)
List
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
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/ .
PwC | December 2018 31Tenders (Multilateral organizations)
List
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)
Note: tenders information are collected from https://wbgeconsult2.worldbank.org, www.devex.com, www.adb.org, https://www.ungm.org
PwC | December 2018 32Tenders (Multilateral organizations) (cont’d)
List
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)
Note: tenders information are collected from https://wbgeconsult2.worldbank.org, www.devex.com, www.adb.org, https://www.ungm.org
PwC | December 2018 334. MIC Permitted Projects PwC | December 2018 34
MIC Permitted Projects (Meeting 20, 2018)
No. Name of Company Type of Investment Form of Investment
Assembling, manufacturing and sales of Myanmar Citizen
1 Myanmar Brilliance Auto Co., Ltd
motor vehicles Investment
Network Facilities Services, Network
2 Ocean Wave Communication Co., Ltd Wholly Foreign Owned
Services and Application Services
Source: DICA
PwC | December 2018 355. Upcoming Events PwC | December 2018 36
Upcoming Events (January 2019)
List
Date Location Name of Event Sector Price Focus Points
“showcase your latest products and
technologies in a high demand region. With
this event you can raise your company
Electric Power Exhibition profile and stay ahead of the competition.
17-18 Jan 2019 Yangon Power Free
& Conference Network with the industry's most influential
players. Explore business opportunities and
meet new partners in dynamic
surroundings”
Manufacturing,
Garment,
Power,
Tourism, “ to provide international and local investors
Education, USD the opportunity to discover business
28 - 29 Jan
Naypyitaw Invest Myanmar Summit Food 500/ potential of Myanmar as well as a platform to
2019
Processing & person meet with the Central and Regional
Fishery, Government officials”
Healthcare,
Infra &
property
Note: Events information are collected from https://www.go-myanmar.com/events-and-conferences and https://10times.com/myanmar .
PwC | December 2018 37Upcoming Events (February 2019)
List
Date Location Name of Event Sector Price Focus Points
“A Special Focus on Myanmar plus Emerging
Mobile Money & Agent Banking and
26-27 Feb 2019 Yangon TBC Opportunities from the regional Digital
Banking Summit Finance
Transformation”
Note: Events information are collected from https://www.go-myanmar.com/events-and-conferences and https://10times.com/myanmar .
PwC | December 2018 38www.pwc.com/mm
PwC Myanmar Weekly Business Intelligence Publication
For further information please contact:
Jovi Seet
Senior Executive Director
jovi.seet@sg.pwc.com
Brandon Lye
Director
brandon.ys.lye@sg.pwc.com
© 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.
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