PwC Myanmar Weekly Business Intelligence Issue September 2017

Transcription

1 PwC Myanmar Weekly Business Intelligence Issue September 2017

2 1. Weekly Key Financial & Business News 2

3 Weekly Key Financial & Business News Headlines FPB Considers YSX Exit Low-Cost Housing Loans Extended - Ministry Southern Shan State to receive electricity Yangon s growing trade demands deeper port to ease logistics woes New insurance scheme to provide aid in obtaining loans 3

4 Weekly Key Financial & Business News Headlines Three gas turbine power plants expect to generate sufficient electricity supply next year Myanmar parliament to Thai loan for Dawei SEZ road China, Myanmar discuss establishment of border economic cooperation zone Asia s next infrastructure boom Courting investments and fostering ties with China 4

5 Weekly Key Financial & Business News Headlines Hantharwaddy airport priority for government Myanmar exports 2m tonnes of oil via pipeline over 4 months Does Myanmar need a deep-sea port? Lack of investment throttles transport infrastructure 5

6 Myanmar Business Today FPB Considers YSX Exit 18 Sep 2017 First Private Bank (FPB) is considering delisting from the Yangon Stock Exchange (YSX) siting sliding share prices. The board of directors of FPB met and announced the option of delisting from the nascent capital market on September 10, U Myint Zaw, CEO of FPB, said. On January 20, FPB became YSX s fourth listed company and began trading at K39,000 per share. Since, prices have trickled down to their current valuation of K24,000 per share. According to 27th annual board of directors meeting, the companies feels this move is urgent in order to protect the shareholders from losing further value. However, the company is in the process of collecting input from larger shareholders and industry experts before making any final decisions, U Myint Zaw said. Delisting from the fledging market would be detrimental to the reputation of the YSX. The exchange has failed to attract new companies since FPB listed 8 months ago and a back-step now, as the economy slows and investor confidence shakes, could be ruinous. It is not good to hear that a company plans to delist from YSX. The impact will go beyond the YSX and other listed companies to affect the economy as a whole. But we are still in the consideration stage and not a final decision yet, U Thet Tun Oo, a Senior Executive Manager of YSX, said According to YSX statistics FPB stocks trade volume amounted to K22 million in the first week of September while August saw an even-keeled K110 million traded. The four listed companies on the YSX are First Myanmar Investment, Myanmar Thilawa SEZ Holdings Public Limited, Myanmar Citizen Bank, and First Private Bank. Source: Myanmar Business Today 6

7 Myanmar Business Today Low-Cost Housing Loans Extended - Ministry 18 Sep 2017 The Construction and Housing Development Bank (CHDB), in cooperation with the Ministry of Construction and the Myanmar Construction Entrepreneurs Association, will elongate federal loan repayment plans from 10 years to 15 years, U Zaw Win, Managing Director of CHDB, said. Shortly after the NLD was assumed office in 2016 they announced plans to build 200,000 low-cost apartments in cities across Myanmar in an effort to combat shortages of affordable housing. To be eligible for low-cost housing, the Ministry of Construction mandated that each buyer must deposit 30 percent of the home s value in a savings account at CHDB. To open the account, applicants must show their national identification card, a letter from ward administrators, and a set-up fee of K10,000. Only after will they be eligible for a housing mortgage worth the remaining 70 percent of the property s value. There savings accounts have no maximum limit and come with a very attractive 8.5 percent interest rate. CHDB began introduced the housing scheme in August 2016 and as of March 2017 more than 5,000 individuals opened saving accounts, U Win Zaw said. Extending loan repayment will lighten the financial burden on new home owners and be more attractive to a larger amount of citizens. Currently, there are more than 18,000 housing accounts at CHDB Bank with more than 600 apartments already sold to qualified buyers. There are more than 2,000 apartments being developed by Minister of Construction to be sold to qualified buyers. These low-cost housing projects are spread out across Dagon Seikan, Hlaing Thayar, Shwe Linban, Yuzana, Kanaung, and Naypyidaw Townships. Source: Myanmar Business Today 7

8 Myanmar Times Southern Shan State to receive electricity 18 Sep 2017 Electricity will be installed at a total of 416 villages in the Taunggyi, Loilen and Langhko districts in Southern Shan State between 2018 and 2022 according to the Ministry of Electricity and Energy (MOEE) at a press conference last week. Currently, just about a third of all the villages in Southern Shan State have access to electricity, according to MOEE statistics. The project, which will see some 32,674 households receiving power, will be funded by a million loan from Germany s Kreditanstalt für Wiederaufbau (KfW) Bank as well as a 6.54 million grant by the Eurozone. The interest rate on the KfW loan is expected to be low, at just 0.75 percent, said U Tin Aung, chief engineer at Myanma Electricity Power Enterprise (MEPE). MEPE will be involved in helping to implement the project. The loan agreement will be signed this week. Subsequently, international tenders will be invited for the purchase of 33kv and66kv transmission lines as well as substation equipment, while local tenders will be invited for transformers and posts. The project is part of the government s National Energy Master Plan to achieve full electrification by It will be implemented with the help of the World Bank, Asia Development Bank and Japan International Cooperation Agency. No reason was given for choosing Southern Shan State, which is just one among the many areas in Myanmar which does not enjoy regular access to electricity. It is up to the organisations extending the loans. I don t know the exact reason for their choice of Southern Shan State, said U Tin Aung. In Southern Shan State, 30 out of 35 cities have access to electricity while the remaining five cities have alternatives to generating electricity, according to MOEE statistics. Out of the 4,952 villages, 990 receive electricity from the national grid, while another 477 villages receive power from other sources. Source: Myanmar Times 8

9 Myanmar Times Yangon s growing trade demands deeper port to ease logistics woes 19 Sep 2017 A DEEP-SEA port with access to the commercial capital should be built to cater for significant volume increase in trade if Myanmar aspires to develop into a competitive import-export economy, logistics businesses from the European and Japanese chambers told The Myanmar Times. European logistics businesses have called for a deeper port to be constructed in Yangon s delta region, but previous studies concluded that such undertaking would be difficult, a Japanese logistics expert cautioned. According to a report by the European Chamber of Commerce in Myanmar (EuroCham), the lack of port infrastructure and congestion present a significant constraint for sea trade. It called for the establishment of a deep-sea port together with a Special Economic Zone (SEZ) at the delta region in order for the country to realise its geographical advantage and become a logistics hub in Asia. Members of the EuroCham logistics advocacy group include Maersk Line Myanmar, Santa Fe Mobility Services, Dextra Transport, Damco Logistics Myanmar, Kuehne + Nagel, Rhenus Myanmar, Royal Haskoning DHV, Myanmar DHL and CMA CGM. The existing facilities of ports are questionable for the traders as there have been serious port congestion problems at the terminals in the past. For the time being, the current main terminals are all river terminals which means that shipping lines are unable to bring in larger-sized vessels, the report stated. It recommended that a feasibility study on the construction of the port be conducted within 12 months. Source: Myanmar Times 9

10 Myanmar Times New insurance scheme to provide aid in obtaining loans 19 Sep 2017 Co-operative Bank (CB) is preparing to launch a new Credit Guarantee Insurance (CGI) system so that it can extend wider financial assistance to the country s small and medium enterprises (SMEs). CGI covers businesses against non-payment of debts owed to them by business customers for goods or services provided on credit terms. As part of that launch, CB Bank opened an SME centre at its branch in Thiri Mon,Mayangone, Yangon last week. "The Central Bank of Myanmar only defines one type of loan under which collaterals are required for businesses to qualify. With CGI, many more SMEs will be able to qualify for loans. We will open SME centers across the nation, Daw Naw Al Phaw, Managing Director of CB Bank, said. The SME centers will assist SMEs in getting loans. Currently, CB Bank offers CB Bank loans, SME- CGI loans, SME-JICA two-step loans, SME term loans and CB-KfW loans under various interest rates depending on the loan type. CB Bank has so far extended over K300 billion to more than 1,300 businessman from 2013 to September "As there are many types of CGI loans, it greatly supports the businessmen. Now, preparations are being made to draft a CGI law to develop this sector further. After enacting a law, a Credit Guarantee Corporation can be formed," General Manager of Myanmar Insurance (MI) U Khin Maung Win told the Myanmar Times. Source: Myanmar Times 10

11 Myanmar Times Three gas turbine power plants expect to generate sufficient electricity supply next year 19 Sep 2017 Three new natural gas-fired power plants with the capacity to generate more than 450 megawatts of power are expected to go live before the coming summer season. That should satisfy the energy demands of the country for 2018, said U Khin Maung Lay, deputy managing director of the Ministry of Electricity and Energy s (MOEE) Electric Power Generation Enterprise. The annual electricity demand nationwide is between 300MW and 400MW. We plan to run three new gas-fired power plants that can generate 450MW by the next summer. This will meet the country s demands, particular those from Yangon, he said at a press conference last week. The power plants are Thadon power plant in Mon State, Thaketa power plant in Yangon Region and Myingyan power plant in Mandalay. State-owned Thadon power plant, which is currently being built by China Energy Engineering Group Co. (CEEC), is expected to generate 120MW of power and is about 80 percent complete. Meanwhile, the Thaketa power plant, a joint venture between China s Union Resources and Engineering and the MOEE, is more than three quarters complete. If the plant, which is expected to generate 106MW of power is successful, it will support most of Yangon s electricity demand, said member of Yangon Electricity Supply Corporation U Aung Kyaw Oo. Construction of the third and largest plant, the 225MW Myingyan plant, is about 90pc complete. When it goes live, it is expected to provide long term power supply to the Mandalay Region. The plant is now being constructed by Singapore s Sembcorp Industries under a build-operatetransfer agreement with the MOEE. Source: Myanmar Times 11

12 Eleven Myanmar Myanmar parliament to Thai loan for Dawei SEZ road 19 Sep 2017 The Ministry of Commerce says borrowing from Thailand to build a two-lane road that will connect the Dawei Special Economic Zone to Thailand will be discussed in parliament. Thailand will offer a loan of 4.5 billion baht (US$136 million) for the construction of the road, and officials from both countries are now working on the project s financial plan. Officials are working on the Dawei SEZ. As we re borrowing money from Thailand, the cost for the road construction is still being calculated. As it will be a governmental loan, the parliament must discuss it, says Khin Maung Lwin, a senior official from the ministry. Officials from both countries held a coordination meeting recently to discuss the development of the Dawei SEZ and nearby areas. Union Minister for Commerce Dr Than Myint met a delegation led by Japanese ambassador Tateshi Higuchi in early July to create a new master plan for the economic zone. Source: Eleven Myanmar 12

13 Eleven Myanmar China, Myanmar discuss establishment of border economic cooperation zone 20 Sep 2017 The establishment of China-Myanmar border economic cooperation zone is being discussed between the two governments. The government of Yunnan Province has invested US$10 billion in Myanmar, while Myanmar entrepreneurs have also invested $100 million in the province, according to a press release. The press release came after a regular meeting between the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and Yunnan Provincial General Chamber of Commerce (YPGCC). Trade value between Myanmar and Yunnan in 2016 reached $6.1 billion. Myanmar's export value amounted to $3.6 billion, and the import value to $2.5 billion. Yunnan's investment of $10 billion up to June this year mostly went toward hydroelectricity, minerals and agriculture. Ren Guanghua, deputy counsel-director of the Yunnan government's trade department, said the amount constituted 21 per cent of the province s total investment in foreign countries. Meanwhile, Myanmar businesspeople have in invested in Yunnan's real estate, industry, retail and wholesale trade and hotels industry. Details about the establishment of a bilateral border economic cooperation zone are still being coordinated by officials on both sides. Toe Aung Myint, permanent secretary of the Ministry of Commerce, said when the zone emerges, raw materials will be turned into finished goods in the zone, and entrepreneurs from both countries will be able to establish factories there. Source: Eleven Myanmar 13

14 Myanmar Times Asia s next infrastructure boom 20 Sep 2017 Infrastructure is essential for development. Roads, railways, ports and power supplies have helped drive Asia s growth, allowing its people to get to work and its products to reach markets. For this momentum to continue, the region s existing stock of infrastructure must be upgraded. A new generation of transport networks, energy facilities, and water and sanitation systems must be built. The demand for infrastructure across Asia and the Pacific far outstrips current supply, according to a recent report by the Asian Development Bank entitled Meeting Asia s Infrastructure Needs. More than US$26 trillion will be needed between 2016 and 2030, or US$1.7 trillion a year, to deliver infrastructure that supports robust growth and is resilient to climate change. That s double the amount currently spent each year. How can we close the gap? Asia s governments alone cannot foot this staggering bill, and the private sector can be reluctant, often with good reason, to shoulder the risk. Coordinated action is the only way forward. Otherwise, growth opportunities will be missed and it will take longer for countries to lift their citizens out of poverty. Today, only a few countries, notably China among the large economies, are investing close to what they need. The region will grow by more than 5 percent a year on average from now until 2030, and infrastructure will need to keep pace. But, excluding China, the infrastructure investment gap for the region is estimated to be an additional 5pc of GDP. Of the US$75 trillion in global longterm assets from institutional investors, only 1pc is invested in infrastructure. The public sector can close some of the gap by mobilising public finances. Policymakers can raise revenues, primarily through tax reforms. Also, spending can be reoriented, for example by reducing poorly-targeted fuel subsidies. Finally, countries must determine whether they can increase borrowings while keeping debt levels manageable. Source: Myanmar Times 14

15 Myanmar Times Courting investments and fostering ties with China 20 Sep 2017 Myanmar s economy is inextricably linked to neighbouring China. The country exports more than half its agriculture produce across the border, making China one of its largest trade partners. Meanwhile, China is also the largest investor in Myanmar, with total approved investments totaling US$19.1 billion as at August 31. As a whole, foreign direct investments from China make up about a quarter of total FDI into Myanmar. Yet, total approved FDI from China has slowed over the past fiscal year. To discuss the situation, The Myanmar Times met with Yan Yu, Vice President of Yunnan Provincial General Chamber of Commerce (YPGCC) for an exclusive interview during his visit to Myanmar onseptember 18. Here s an excerpt of what was discussed. The Myanmar Times: Foreign direct investments (FDI) to Myanmar have slowed of late. What is holding back Chinese investments to Myanmar? Mr Yan Yu: The most important factor holding investors back is the lack of clarity in government policies. For example, what was permitted under the previous government is no longer permitted under the current government. Things are not clear so it is very risky for investors to invest in Myanmar. They wouldn t dare to. I hope the Myanmar government will enact laws that provide a safety net for foreign investors that protect their interests regardless of a change in government. The main reason why big corporations are not entering Myanmar is the lack of electricity and reliable infrastructure provided by the government. If Myanmar can guarantee electricity supply and provide roads and ports, many more foreign investors will come in. China focuses on four sectors: real estate, tourism, logistics and agriculture. Tourism is a given since Myanmar has many beautiful beaches, islands and mountains. Logistics is important for cargo transportation. In fact, there are currently two or three ports being built in Myanmar so investors in this sector couldincrease. Source: Myanmar Times 15

16 Myanmar Times Hantharwaddy airport priority for government 20 Sep 2017 THE planned Hantharwaddy International Airport is the only priority in the area of aviation under the National League for Democracy-led government, said U Win Khant, permanent secretary of Ministry of Transport and Communications. He made his comments in relation to the government s Transport Master Plan during the sideline interview with The Myanmar Times at Myanmar Global Investment Forum. The event was organised by Euromoney on September 12 and 13 in Nay Pyi Taw. The concessional agreement negotiations with the bidding winners is expected to be concluded towards the end of this year and the project is to be completed within five years following the agreement, U Win Khant added. This is the major priority for the Transport Master Plan. We will focus on this airport project under this government term. Due to the capacity of the Yangon International Airport, we will need the new one within five years, according to calculations made by the minister and Department of Civil Aviation [DCA], he said. The three existing Kawthaung airport in Tanintharyi Region, Mawlamyine airport in Mon State and Heho airport in Shan State are going to be upgraded through a public-private partnership (PPP) system, but the lack of proper PPP policy and guidelines is a major problem, he added. Public-private partnerships between a government agency and private-sector company can be used to finance, construct and operate projects, such as night markets and public road networks. The Yangon International Airport s optimal capacity is 2.7 million passengers but it already served 3 million passengers in 2013, he went on. Source: Myanmar Times -airport-priority-government.html 16

17 Myanmar Times Myanmar exports 2m tonnes of oil via pipeline over 4 months 21 Sep 2017 OVER 2 million tonnes of crude oil has been exported to China through the Myanmar-China pipeline, according to U Toe Aung Myint, permanent secretary of the Ministry of Commerce (MOC). The pipeline connecting Made Island in Rakhine State to Kunming, capital of China s Yunnan Probince was inaugurated on May 2, By September 1, the export volume exceeded 2 million tonnes, according to MOC s statistics. The project flourished in the framework of the oil export agreement, signed during President U Htin Kyaw s visit to China in April this year. The pipeline amounted to US$2.45 billion, with 51 percent ownership to China National Petroleum Corporation (CNPC) and 49pc by state-owned Myanmar Oil and Gas Enterprise (MOGE). CNPC s subsidiary, South East Asia Crude Oil Pipeline Company (SEAOP), is currently operating the oil jetty on Made Island. Yearly contractual delivery amounts to 12 million tonnes upon completion of the first phase and 22 million tonnes for the second phase. Moreover, domestic utilisation for Myanmar reaches 2 million tonnes a year, SEAOP s press release stated. In return for its export, Myanmar will collect a Right-Of-Way (ROW) exceeding $13 million a year along with two custom duties. The exact amount for the latter is still to be calculated, said Li Zilin, SEAOP s Vice President, at a press conference in May. ROW refers a type of easement granted or reserved over the land for the oil and gas pipeline. Source: Myanmar Times exports-2m-tonnes-oil-pipeline-over-4- months.html 17

18 Myanmar Times Does Myanmar need a deep-sea port? 21 Sep 2017 MYANMAR is one of the fastest growing economies in the Southeast Asia region, with GDP having risen by an average of 7 percent in the past decade. The economy has expanded on the back of rising trade. Since 2010, the volume of containers arriving in Myanmar s ports is up three times, reaching 1 million twenty-foot equivalent units (TEUs) in This rise is projected to continue, with the International Monetary Fund forecasting GDP growth of 7.3pc on average in the next five years. With the growth of trade, sea ports have become an important node in the logistics network as the bulk of the cargo is moved by sea. It is also pertinent to note that trade in Myanmar is imbalanced, with imports exceeding exports by around four times. As such, it is important that the country s ports are operating in a productive manner which lowers the overall logistics cost for shipping lines and shippers alike. In Myanmar, three key issues need to be addressed to facilitate port development. Bottleneck issues Firstly, the cargo bottlenecks in the logistics supply chain are concentrated at the Yangon and Thilawa ports, where more than 95pc of cargo is handled. Consequently, any disruption in port operations would result in costly delays. This was never more pronounced than in June 2016, when peak congestion at the ports resulted in vessels waiting for a berth for up to 14 days. Secondly, both the Yangon and Thilawa ports are restricted by drafts of up to ten metres, allowing ships of no more than 2,100 TEUs in size to serve the market. These vessels are significantly smaller than the 18,000-20,000 TEU ships deployed on Asia-Europe routes. Hence, shipping costs for goods moved on smaller ships are also higher. Thirdly, vessels calling at the ports are restricted by navigation issues. For example, the ships can move in the narrow river channel only during high tide and daylight hours. Source: Myanmar Times 18

19 Myanmar Times Lack of investment throttles transport infrastructure 21 Sep 2017 THE country s transport sector demands US$60 billion in investment in the next 15 or 20 years, according to the Ministry of Transport and Communications. Efforts to develop railways as well as the aviation and maritime infrastructure are frustrated by the lack of investment. U Win Khant, permanent secretary of Ministry of Transport and Communications told The Myanmar Times during the sideline interview at Myanmar Global Investment Forum that the three existing Kawthaung airport in Tanintharyi Region, Mawlamyine airport in Mon State and Heho airport in Shan State are going to be upgraded through a public-private partnership (PPP) system. The Myanmar Global Investment Forum was organised by Euromoney on September 12 and 13 in Nay Pyi Taw. Public-private partnerships between a government agency and private-sector company can be used to finance, construct and operate projects, such as night markets and public road networks. The Asian Development Bank (ADB) and Myanmar government have approved their country partnership program. The first strategy in partnership covers the period from 2012 to 2016, and the second phase will be implemented from 2017 to Infrastructure is the most important area in both strategy programs, which serves as the major topic of discussion when ADB president met President Htin Kyaw and State Counsellor Daw Aung San Suu Kyi. We conducted a few diagnosis studies in order to understand the market size. According to our study, which was done... in , demand for investment in infrastructure amounts to $120 billion, covering transport, energy and power as well as telecommunications. Splitting that amount, half of the total, i.e. 60 billion, is needed for investment in the transport sector. For the time period we are looking at is up to Source: Myanmar Times 19

20 2. Weekly Investment News 20

21 Weekly Key Investment News Headlines Myanmar MFI Alliance gets $5m from Asia Impact Investment Fund, return backers Deal-making opportunities galore as Myanmar targets $11b FDI by 2030 Malaysia s Kian Joo Can secures $60m debt for Myanmar manufacturing facility Tech Venture Capital Firm Receives $5 Mln Investment Dept of Urban & Housing Development: Partner Invitation for Housing Project in Dagon Seikkan Township. 21

22 Deal Street Asia Myanmar MFI Alliance gets $5m from Asia Impact Investment Fund, return backers 17 Sep 2017 Alliance for Microfinance in Myanmar Ltd, a Mandalay-based deposit taking microfinance institution, has received an equity injection of $5 million from their existing shareholders and new investor, Asia Impact Investment Fund (AIIF), the company announced. The transaction was concluded in August. Alliance started its operations in Myanmar in 2014 providing financial services and education to lowincome households focusing on women entrepreneurs. The new investment will strengthen our capital base and ensure the continued expansion, outreach and development of our service portfolio, said Kim Guenkel, CEO of Alliance, in a statement. Existing shareholders, Base of Pyramid Asia (BOPA), a Singapore-based equity investor in microfinance institutions, Danish Investment Fund for Developing Countries (IFU), Copenhagen head-quartered self-governing state fund, Insitor Impact Fund of Insitor Management, an impact investment firm specializing in equity, debt and mezzanine financing, participated in the latest investment round. New shareholder, Asia Impact Investment Fund I, is a joint collaboration between UOB Venture Management Pte Ltd, a subsidiary of United Overseas Bank Limited, and the Singapore branch of Credit Suisse AG. Being a leading MFI in Mandalay region, Alliance has reached a gross loan portfolio of about million in August 2017 through 64,120 active borrows and aims to promote financial inclusion around Myanmar by reaching a gross loan portfolio of $36 million by Source: Deal Street Asia ance-firm-alliance-gets-5m-equity-workfinancial-inclusion-myanmar-82516/ 22

23 Deal Street Asia Deal-making opportunities galore as Myanmar targets $11b FDI by Sep 2017 Despite mounting political tensions in Myanmar s Rakhine region, Maung Maung Win, deputy minster of the Ministry of Planning and Finance is targeting an inflow of $11 billion in foreign direct investment per year by Myanmar s optimism stems from the frontier market attracting FDI worth $6.64 billion in With an aim to become investment destination, we have been making all our efforts to create a favorable investment environment along with sound macroeconomic reform measures, said the deputy minister, at the Euromoney Conference last week, which saw attendance from a host of seasoned investors, private equity fund managers and heads of institutional investors. As of August, foreign investment commitments have touched $3.69 billion with the government targeting the number to extend up to $6 billion per year by the next three years. One of the key regulatory changes, the revised Myanmar Companies Act, with the assistance of ADB, is expected to be introduced by the year-end which defines foreignowned companies as those in which overseas investors ownership exceeds 35 per cent. Also the Foreign Direct Investment Plan (FDIPP) has been implemented with assistance of JICA. Source: Deal Street Asia making-opportunities-lined-gov-targets-11-b-fdi / 23

24 Deal Street Asia Malaysia s Kian Joo Can secures $60m debt for Myanmar manufacturing facility 19 Sep 2017 Kian Joo Can Factory, a leading Malaysia-based can manufacturer, and investment holding company, has secured $60 million as debt investment from bank financing to support its $100-million facility in Myanmar, a top executive of the company said. The two manufacturing facilities in Thilawa Special Economic Zone in Yangon are expected to be commissioned by the first quarter of Kian Joo Can has added an initial share capital of $23.5 million and is going to bring in put in another $60 million by way of loans from banks in Singapore and Japan, said Ooi Teik Huat, group chief financial officer of Kian Joo Can (Myanmar). The balance of the $100 million total investment will come from its internal financing. We work closely with international banks and for Myanmar, we work with Singapore and Japanese banks. Officially, the letter of offer (from the banks for Myanmar) was received a few months back, said Huat to DEALSTREETASIA during the sidelines of the Euromoney conference. The two factories in Myanmar will produce cans in tin and aluminium, mainly for use by paints and beverage industry. The company is targeting to meet demand from both local and export markets Set up 1958, Kian Joo Can Factory today has 18 factories in Malaysia and three factories in Vietnam. Kian Joo Can Factory reported revenue of MYR million for the second quarter and six months ended as of June 2017, compared to MYR million for the same period last year. Source: Deal Street Asia s-kian-joo-can-getting-60-m-bank-financingfinish-off-factory-next-year-82620/ 24

25 Myanmar Business Today Tech Venture Capital Firm Receives $5 Mln Investment 19 Sep 2017 Myanmar s largest online property portal, imyanmarhouse.com has announced an investment of $5 million into a venture capital (VC) fund for local tech startups, U Nay Min Thu, Managing Director of imyanmarhouse.com, told Myanmar Business Today. Myanmar s tech startup community is far smaller and less developed than neighboring countries. The fund will encourage entrepreneurs by rewarding innovation, especially in technologybased startups that move national industry forward, Managing Director of imyanmarhouse. com, told Myanmar Business Today. Myanmar Tech Ventures, to be launched in 2018, has been in development for about a year with the stated mission of growing the nation s tech startup ecosystem by funding 5 to 10 startups annually. Tech is the fastest growing industry on the planet which can also maintain profitability and an ethical soundness. The fund will invest in local software or customer-based companies, he added. Much of the world s wealth is moving towards, or belongs to, the technology sector. For Myanmar to carve out any kind of an economic leadership role in the ASEAN bloc, it must spur growth in IT skills and engineering as well as ingenuity and innovativeness. I believe there is potential for technology based companies to grow in Myanmar, U Nay Min Thu added. In the past, U Nay Min Thu provided capital for several local startups including a $40,000 investment in B2B trading platform Bagan Hub, BanganMart.com and Groupbuyy.com.mm as well as undisclosed amounts in ride-hailing app Hello Cabs and online shopping site 365Myanmar.com. Source: Myanmar Business Today 25

26 Consult Myanmar Dept of Urban & Housing Development: Partner Invitation for Housing Project in Dagon Seikkan Township. 22 Sep 2017 Ayearwon-Yadanar Highrise Housing Project, located at Dagon Seikkan Township Ward No (61 & 67), between Yadanar and Ayearwon Road. The project is constructed and developed by the Department of Urban and Housing Development. Partners and Investors who want to co-operate for the project are invited. Project details and partnership scheme can be discussed during the office hour at the site office. Source: Consult Myanmar 26

27 3. Weekly New Tenders 27

28 Tenders (Myanmar Government) List No applicable Tenders announced for the week ending 22 September 2017 Note: tenders information are collected from and

29 Tenders (Multilateral organizations) List Equipping Youth for Employment Project - Civil Works Coordinator Closing Date: 28 Sep 2017 (Individual) Equipping Youth for Employment Project - Procurement Coordinator Closing Date: 28 Sep 2017 (Individual) Equipping Youth for Employment Project - Project Assistant Closing Date: 28 Sep 2017 (Individual) Equipping Youth for Employment Project - Project Financial Officer (Position 1) Closing Date: 28 Sep 2017 (Individual) Equipping Youth for Employment Project - Project Financial Officer (Position 2) Closing Date: 28 Sep 2017 (Individual) Note: tenders information are collected from

30 Tenders (Multilateral organizations) List Equipping Youth for Employment Project - Specialist on Environment Closing Date: 28 Sep 2017 (Individual) Equipping Youth for Employment Project - Specialist on Project Financial Management Closing Date: 28 Sep 2017 (Individual) Innovative approaches to Public-Private Partnerships in smart grid investments: Best practice experiences from government collaboration with utilities, Closing Date: 02 Oct 2017 Provision for the services for Excel Training Closing Date: 03 Oct 2017 (Individual) Consultancy to improve the reconciliation process between UNOPS ERP system and Stop TB s OMS system, Closing Date: 24 Sep 2017 (Individual) Note: tenders information are collected from

31 4. MIC Permitted Projects 31

32 MIC Permitted Projects (Meeting 12, 2017) No. Name of Company Type of Investment Form of Investment 1 Global Agriculture Joint Venture Co., Ltd Plantation, production and sale of teak Joint Venture 2 Mandalay Brewery Ltd Manufacturing and sale of beer and other spent grains Joint Venture 3 Delicious Food Ltd Production and sale of food and consumer products Myanmar Citizen 32

33 5. Upcoming Events 33

34 Upcoming Events (October 2017) List Date Location Name of Event Sector Price Focus Points Oct 2017 Yangon Building & Construction Myanmar Construction Free The event showcases product from Building and Construction industry as well as to help the professionals to discuss about the new opportunities and trends associated with the industry Oct 2017 Yangon Mining Myanmar Mining Free This event showcases product from Minerals, Metals & Ores industry. This event showcases product from Minerals, Metals & Ores industry. like will provide companies with opportunities to see first-hand the potential in Myanmar's Mining sector Oct 2017 Yangon Electric, Power & Renewable Energy Power Free Showcases product from Electronics & Electrical Goods, Power & Renewable Energy industries etc. in the Electronics & Electrical Goods, Power & Renewable Energy industries Oct 2017 Yangon Oil & Gas Myanmar Oil & Gas Free Opportunities and difficulties facing in Myanmar Oil & Gas Industry as it embarks on its exciting new phase of growth. 34

35 Upcoming Events (November 2017) List Date Location Name of Event Sector Price Focus Points Nov 2017 Yangon Myanenergy Energy Free Show exhibits a wide range of latest technology aided products and equipment related to the power industry. The leading industrialists will be present in this show to exhibit the respective range of modernized and productive range Nov 2017 Yangon Myanwater Water Free Will provide a platform to the technical and professional experts related to waste management industry. Attendees will get a scope to improve and enhance their knowledge by attending this international trade show 29 Nov 2017 Yangon Myanmar Satellite Forum & Exhibition Technology $750 An opportunity for the global and regional satellite industry to meet with invited guests from Myanmar in broadcasting, B2B, government and homeland security. The Forum is part of the CommuniCast Myanmar event. 35

36 PwC Myanmar Business Intelligence Publication For further information please contact: Jovi Seet Senior Executive Director Brandon Lye Director 2017 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. 36