PwC Myanmar Weekly Business Intelligence Issue December 2017

Transcription

1 PwC Myanmar Weekly Business Intelligence Issue December 2017

2 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 226,000 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 This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors 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 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

3 1. Weekly Key Financial & Business News PwC December

4 Weekly Key Financial & Business News Headlines Myanmar Companies Yearbook out Japan supports low-cost housing experiment Construction of Dawei SEZ back on the cards New industrial zones planned at 11 townships in Yangon Region Myanmar Companies Act approved PwC December

5 Weekly Key Financial & Business News Headlines Myanmar's largest oil refinery project cancelled Myanmar to approve five specialised banks for targeted lending Financiers cheer central bank's compromise on loan deadline New Companies Law a game changer for bourse Myanmar emerging as key component in China s Belt Road Initiative PwC December

6 Newspapers Myanmar Times Myanmar Companies Yearbook out 04 Dec 2017 The Myanmar Companies Yearbook, a groundbreaking publication that contains key information about the leading companies in Myanmar, was launched by the FWP Research Co. Ltd in November. The FWP Research, a Tokyo-based research and survey firm, said it published The Myanmar Companies Yearbook (English version) Vol.1,toimprove the transparency of companies in the country. The yearbook is priced at US$600 per copy. FWP said the publication is a must-read for would-be-investorsas it provides valuable insights and background information about the different companies they might be interested in dealing with if they decide to do business in Myanmar. The yearbook features basic information about the 1,000 leading companies in Myanmar, such as the company name, logo, business activities, industries, main projects, date of DICA registration and establishment, contact numbers, address, capital, number of employees, location of factories, warehouses and other facilities, list of key executives and list of key shareholders, tax ranking and transparency ranking, among others. One section focused on 20 famous Myanmar tycoons; how they started their businesses and their rise to success. The featured famous businessmen are AikHtun of ShweTaung Group; AungKo Win of Kanbawza Group; AungThet Mann of Ayer ShweWah,AYSMFG; Chit Khine of Eden Group; HtayMyint of Yuzana Group; HtunMyintNaing aka Steven Law(Asia World Group),KhinMaung Aye(CB Bank,KMA Group),KhinShwe of Zaykabar Group; KoKoGyi of Capital Diamond Star Group; Kyaw Win of Shwe Than Lwin Group; Marlar Win of UMG Myanmar Group; Michael Moe Myint of Myint&Associates,MPRL E&P Group; Nay Aung of IGE,UAB; Sai Sam Htum of Loi Hein Group; Serge Pun aka U TheimWai of SPA,FMI; TayZa of Htoo Group; Thadoe Hein of MyanmmaAwba Group; Win Aung of Dagon International; Win Win Tint of City Mart Holding,Pahtama Group; and ZawZaw of Max Myanmar Group. Source: Myanmar Times PwC December

7 Newspapers Myanmar Times Japan supports low-cost housing experiment 05 Dec 2017 The Japan-Myanmar Association for Industry of Housing and Urban Development (UMHU) and Myanmar Construction Entrepreneurs Association (MCEA) signed a memorandum of understanding (MoU) on December 4 to run a trial on a low-cost housing project. The trial process will be done with the money donated from Japan. Two buildings will be built in different types, said U Shein Win, deputy chair of Myanmar Construction Entrepreneurs Association (MCEA). It will be built with the support of Japanese technology and materials in Mingaladon and construction will start in January next year. After the completion of the trial building, the place will serve as a showroom for displaying Japanese items used in construction. After three years, the building together with the land will be transferred over tomcea, U Shein Win added. The aim of the trial and donation is to support construction services in Myanmar to develop. MECA has established YMD Construction Co with the regional government as its partner. It is currently carrying out the project on a land of 183 acres in Dagon Seikkan township in Yangon, which will offer low-cost, medium-cost and staff housing units. YMD has invited JMHU to collaborate on this project. Apart from Japan, MCEA is going to sign agreements with Thailand on technical cooperation for affordable housing. Japan will seek to offer bank loans in housing sector when Myanmar s financial system, its loans and criteria, as well as the credit system are sufficiently developed. Source: Myanmar Times PwC December

8 Newspapers Myanmar Times Construction of Dawei SEZ back on the cards 06 Dec 2017 The government is exploring ways to restart development of the suspended Dawei Special Economic Zone (SEZ), saying the SEZ will benefit Myanmar as well as the region. The Dawei SEZ includes construction of the highway as well as a deep-sea port which will link Thailand, Cambodia and Vietnam in the ASEAN region to India, the Middle East, Europe and Africa. A port at Dawei will also shorten transportation time by eliminating the need to navigate around Singapore through the Malacca Straits. To implement the project, ways must be sought to hold talks between Myanmar, Thailand and Japan, Vice President U Henry Van Thio said during a meeting with local authorities at the site of the project in Dawei, which is the capital of Tanintharyi region near the Thai-Myanmar border. Two taskforces have been formed to look into restarting development of Dawei SEZ. One will focus on problems encountered with the developer for the initial phase, while the second task force will focus on upgrading an existing 150- kilometer road connecting the SEZ to Htee Khee. U Than Myint, Union Commerce Minister who was involved in the meeting with local authorities told The Myanmar Times that the government is pushing for the road to be upgraded within the next two years using funds from the Thai government. In 2015, Thailand had offered Myanmar a soft loan of 4.5 billion baht at an interest rate of 0.1pc to upgrade the road into an ASEAN-standard highway. The loan will be repayable within 20 years. ''Whether we accept the loan will be decided in the coming seventh Pyihtaungsu Hluttaw meeting," U Than Myint said. "After the loan is approved, a tender for the upgrade will be held. Italian-Thai Development Public Company (ITD) or other Thai construction companies can bid," U Than Myint said. Source: Myanmar Times PwC December

9 Newspapers Myanmar Times New industrial zones planned at 11 townships in Yangon Region 06 Dec 2017 The Yangon Region Government is planning to construct new industrial zones in 11 townships outside the Yangon, according to U Nay Win, representative of Pyithu Hluttaw in Thongwa township of Yangon region. U Phyo Min Thein, Chief Minister of the Yangon Region Government met representatives of parliament and the departments of relevant ministries to discuss plans to construct the new industrial zones last week. The new industrial zones are expected to increase the flow of foreign direct investments into Yangon as well as create more job opportunities for the locals. We want to implement these projects quickly, said U Nay Win, representative of Pyithu Hluttaw in Thongwa township of Yangon region, who attended the meeting on December 2. The Yangon Region Government has earmarked 11 townships in which an industrial zone can be constructed. These include townships from the southern districts of Yangon, such as Khayan, Thongwa, Thanlyin, Kyauktan, Kungyangon, Dala, Kawhmu and Twantay as well as the northern districts such as Hmawbi, Hlegu, Htantabin, Taik Gyi. The size of each industrial zone will be 1,000 acres. However, their exact locations were not revealed to prevent speculation in land and property within the area. While such industrial zones are expected to contribute to the economy by drawing FDI and creating jobs, the government must first ensure sufficient and reliable infrastructure such as electricity, roads and water, several companies involved in constructing the zones commented. Even the existing industrial zones have limited access to electricity, said U Ko Lay, chair of South Dagon industrial zone. There are currently over 30 industrial zones in Yangon. The largest of these is Hlaing Tharyar industrial zone, where around 300,000 people work in more than 700 factories. Source: Myanmar Times PwC December

10 Newspapers Myanmar Times Myanmar Companies Act approved 07 Dec 2017 President U Htin Kyaw signed the Myanmar Companies Act at the Pyidaungsu Hluttaw Wednesday, approving the most anticipated piece of legislation in the country this year. Under the new Myanmar Companies Act, foreigners will be permitted to take up to a 35 percent stake in local companies. It also stipulates that businesses with foreign stakes of more than 35pc will be classified as a foreign company. The move paves the way for more foreign investor participation in the Myanmar economy. Mainly, it will allow them to invest in sectors that were previously closed to foreigners such as industrial equipment and pharmaceuticals, said Chester Toh, co-head of law firm Rajah & Tann s Myanmar Practice. In the past, foreigners could only invest in selected sectors such as brand new car distribution, fertilisers and construction materials. Furthermore, foreigners will now be able to take stakes of up to 35pc in companies listed on the Yangon Stock Exchange (YSX). They were not able invest in YSX-listed companies in the past. Currently, trading on the YSX is limited because foreigners are not able to participate and invest, said U Ye Min Aung, managing director of Myanmar Agribusiness Public Cooperation. He added that large investments from foreigners are needed to improve trading volumes. The Myanmar Companies Act is an urgently needed legislation to improve business, he told the Myanmar Times. "According to that law [1940 Companies Act], shares cannot be sold to foreigners. With the new law, it can be done," U Maung Maung Thein, former deputy minister for planning and finance who founded the YSX, said. He added that there isn't much strength from domestic investment and thus foreigners must be allowed to invest. The move paves the way for greater liquidity and more activity on the YSX. In the past, companies did not want to list because there was no liquidity in the market, given that only local investors were permitted to invest, said Mr Toh. Source: Myanmar Times PwC December

11 Newspapers Myanmar Times Myanmar's largest oil refinery project cancelled 07 Dec 2017 Construction of a multi-billion-dollar oil refinery in the south of Dawei has been cancelled after an investor in the project ran into financial constraints, sources confirmed. If completed, the oil refinery would have been the largest in Myanmar. The project, which is backed by the Chinese, had received approval under the former government led by then president U Thein Sein. When contacted by The Myanmar Times, U Aung Naing Oo, secretary general of Myanmar Investment Commission (MIC) confirmed that the project was cancelled during a meeting held in mid-november. The decision was made after military-linked Myanmar Economic Holdings Limited (MEHL), the Myanmar investor of the project, submitted a proposal to pull back the project, citing no progress at all in the two years since receiving approval."mehl submitted the official report about not being able to implement the project to MIC. The main problem is the Chinese investor has not shown any progress since the project was approved. And MIC accepted the cancellation of the project," he said. The estimated $2.6 billion project was to be constructed by Chinese developer Guangdong Zhenrong Energy Co. It would have been the first oil refinery built by the company. The Chinese had negotiated for a 70 percent stake in the project together with a consortium of investors including MEHL, state-owned Myanma Petrochemical Enterprise (MPE) and Yangon Engineering Group, which is controlled by the Htoo Group. The site of the project would have been on 1,634 acres of land owned by MEHL, directly in front of Tizit beach, with pipelines cutting through the nearby villages. In fact, many residents in nearby Hnyin Maw village had raised concerns over being forced to relocate should construction have taken place. More than 2,000 residents from 6 nearby villages have so far signed a petition calling for the project to be scrapped within 2 months of receiving MIC approval. Source: Myanmar Times PwC December

12 Newspapers Myanmar Times Myanmar to approve five specialised banks for targeted lending 07 Dec 2017 The Central Bank of Myanmar (CBM) will approve the forming of five sector-specific banks, according to a directive from the President s Office to the central bank. Under the directive, the President s Office has instructed CBM to approve the opening of Myanmar Tourism Bank, Mineral Development Bank, Glory Farmer Development Bank, Mandalay Farmer Development Bank and Shwe Nann Saw Bank, sources said. We ve known about this instruction. But it is better asking the President Office about details, an official from the CBM told The Myanmar Times. CBM senior officers have not responded to s seeking details of the banks. Similarly, no official announcement granting permission for the five banks has been released. In the meantime, banking insiders said the new banks will likely operate as specialised financial institutions targeting lending to sector-specific businesses. Currently, there are five similar banks in operation, including the Myanmar Micro Finance Bank, Naypitaw Sibin Bank and Construction and Housing Development Bank, which were granted permission to operate in July 2013 under U Thein Sein s former administration. The other two sector-specific banks are Shwe Rural and Urban Development Bank which was approved in July 2014 and Ayeyarwaddy Farmers Development Bank, which was approved in November Targeted assistance U San Thein, financial sector development expert at the German Society for International Cooperation (GIZ), reckons the development is positive for the Myanmar economy. Raising the number of specialised banks will enable businesses within the different sectors to get more targeted financial assistance than general commercial banks. As such, businesses have a better chance to get loans from the bank to expand, he said. Source: Myanmar Times PwC December

13 Newspapers Myanmar Times Financiers cheer central bank's compromise on loan deadline 07 Dec 2017 Private banks have welcomed a move by Myanmar's central bank to allow them more time to clear most of their loan books, giving breathing space to lenders who had warned of a cliff-edge scenario that could have destabilised the financial system. Myanmar's central bank announced in late November that a maximum of three years - instead of the original deadline of six months - would be given to lenders to recover the mostly open-ended "overdraft loans" that make up the bulk of their lending. The move ends a tussle over regulations introduced in July to bring the country's banks closer to international standards. The decision came days after Reuters reported the authorities would back off from a demand that private banks clear most of their loans by January and that it would allow overdraft loans to be converted into three-year loans. The central bank said the new rules allow banks to "collect their credit facilities smoothly" and "increase repayment capacity of their borrower". Banks had complained they were given only six months to fix years of junta-era mismanagement and to recover most of their loans amid a sluggish economy. "It's good to move step-by-step towards Myanmar's banking reform," said Than Lwin, former deputy central bank governor and senior adviser at Myanmar's largest lender Kanbawza Bank. "This gives some breathing space for banks. Myanmar's leader Aung San Suu Kyi has made banking reform a priority for her administration, which faces sky-high expectations after sweeping to power in a 2015 election to end decades of isolation under military rule. About 70 percent of Myanmar's more than $9 billion lending pool is in the form of overdraft loans - typically made on preferential terms to lure customers and rolled over indefinitely. To end such practices, the authorities had previously asked banks to get all those loans repaid by January. Source: Myanmar Times PwC December

14 Newspapers Myanmar Times New Companies Law a game changer for bourse 08 Dec 2017 The enactment of the new Myanmar Companies Law will bring about change for local companies listed or planning to list on the Yangon Stock Exchange (YSX), leading to further development in the economy. Under the new Companies Law, which was officially signed into legislation by President U Htin Kyaw on Wednesday, foreigner investors will now be permitted to take up to a 35 percent stake in local companies. It also stipulates that businesses with foreign stakes of more than 35pc will be classified as foreign companies. This is positive for the YSX as well as the wider economy. It is a huge step forward. The new amended law modernizes the Myanmar companies legal regime and brings it into step with international best practices. And, when fully implemented, it will encourage foreign investment and provide needed liquidity to Myanmar companies, said William Greenlee, managing director of DFDL s Myanmar office. U Tun Tun, senior financial officer and executive director of YSX-listed First Myanmar Investment Company (FMI), agreed. The emergence of this law will result in more foreign direct investments into Myanmar. With more foreign investments in [local firms], these businesses will be able to expand and strengthen their market share through better access to funds and improved liquidity in the stock market. As such, this new legislation is very encouraging for the business community. The new Myanmar Companies Law will provide opportunities for foreigners to invest and buy shares in YSX-listed companies providing the liquidity necessary for an efficient and functional stock exchange, YSX senior executive officer U Thet Tun Oo said. That, in turn, could spur more companies to list on the local bourse. Already, THM Telecom Public Company, has received approval to list on the YSX. The announcement was made on Monday, just two days before the new law was approved. When THM completes the necessary procedures and eventually lists within the next month or two, it will be the fifth company on the YSX. Source: Myanmar Times PwC December

15 Newspapers Mizzima Myanmar emerging as key component in China s Belt Road Initiative 09 Dec 2017 A recent public speaking trip through Asia discussing the ongoing developments within the China Belt Road Initiative (BRI) exposed a number interesting themes, one of which is the increasing influence Myanmar is having on China s Belt Road Initiative (BRI). Most discussion within the maritime, oil & gas and rail sectors focused on the growing improvements in rail infrastructure and the potential that this will be a significant disruptor to trade, logistics and supply chain within the region. Taking a look at the overall changes that potentially impact on those countries and ports that have built strength around maritime expertise, it is plausible to argue that they would need to start planning for a different future. Besides the cyclical shipping downturn affecting the likes of Singapore and Hong Kong, the BRI programme points to a return to a new and changed normal business in the next couple of years. The new order is structurally changing the nature of the business, and a number of these are underpinned by the BRI that will have consequences, intended or otherwise. Whilst most focus is on five major initiatives under the banner of the BRI, little attention has been paid to two programmes that have been under the radar so to speak. The most spoken about projects are: Railway to London Gwadar Port in Pakistan Railway super hub in Iran Asia gas pipeline Khorgos Gateway in Kazakhstan. Underpinning the importance of Myanmar to the success of this corridor is the US$4.27bn refinery facility at Anning that can handle 13 million tonnes of crude oil that is already connected via a pipeline that can deliver 22 million metric tonnes of oil, along with the parallel gas pipeline that can deliver 13.5 bn cubic feet of natural gas per year. Myanmar receives royalties of US$14mn per annum, plus 2 million tonnes of crude and 2.4bn cubes of natural gas. Source: Mizzima PwC December

16 2. Weekly Investment News PwC December

17 Weekly Key Investment News Headlines Rockstart Impact enters Myanmar, seeks startups for first accelerator programme TMH to list on YSX as trading volumes hit all-time low Foreign investment reaches US$4.7 billion so far in Golden Myanmar Business Exchange Plans $5 Million Data Center US firms interested in Myanmar s digital economy PwC December

18 Newspapers Deal Street Asia Rockstart Impact enters Myanmar, seeks startups for first accelerator programme 03 Dec 2017 Impact-focused accelerator Rockstart Impact is seeking Myanmar entrepreneurs that it can help scale and connect with international and local financiers. Rockstart Impact commenced its accelerator programme in Myanmar after its launch in Nepal in The programme in Myanmar is now open to applicants until January 19 and will start on March 5. The new Rockstart accelerator for Myanmar is managed by One to Watch, a Dutch asset management company which has been building companies in Nepal since 2011 and is now seeking opportunities in Myanmar, mainly in the area of education, health and clean energy. Robbert Groenen, country manager for Myanmar at Rockstart Impact, said the organisation is on the watch for companies that are committed to their business and solving a market need. The programme will cover 10 companies making an impact on the community and with a proven track record of at least two years. Participating entrepreneurs will be connected to both local and international mentors, whose support will include working on a gap analysis to understand the current state of the businesses and where they need to be to make them investable. Successful companies will see investment ticket sizes of between $100,000 to $500,000, with an option for follow-on investments based on their progress. The structure of financing could vary from mezzanine financing to royalty based lending, convertible loans or preference shares. In Nepal, Rockstart Impact has worked with 29 startups, of which 21 have secured investment pledges worth over 3 million Euros ($3.5 million). The investor base of the impact investment programme largely hails from the Netherlands and other different parts of Europe. In Myanmar, there are multiple fund managers. What One To Watch offers is the expertise we have on how to finance companies. The entrepreneurs here are either too big for micro-financing or too small for banks or VC, said Willem Grimminck, director and founder of One to Watch. As part of the recruitment drive for the accelerator programme. Source: Deal Street Asia t-impact-enters-myanmar-87564/ PwC December

19 Newspapers Myanmar Times TMH to list on YSX as trading volumes hit all-time low 05 Dec 2017 TMH Telecom Public Company will become the fifth company to list on the Yangon Stock Exchange (YSX), the exchange said Tuesday. However, it will be at least another month or more before trading in shares of TMH can commence. TMH will be listed as a company in the official stock exchange list however trading of the company s shares on the YSX will only begin in January 2018 at the earliest. As of now, the company still needs to conduct an Initial Public Offering which would take at least one month, said U Thet Tun O0, senior executive manager at the YSX. TMH first registered as a company on August 21, 2007 at the Directorate of Investment and Company Administration (DICA) with the registration no. 368/ At the time, the company operated as a private company under Thar Moe Nye Chan Thar Tun Wai Thar Company moniker. It converted to a public company and changed its name to TMH Telecom Public Company on August 21, The company was established with an initial capital of K11.6 billion. TMH provides engineering services related to mobile networks, fiber network projects, mobile base and fiber network installations and maintenance, production and distribution of prepaid phone bills and conference technology. The company owns two factories in Yangon and Pyin Oo Lwin, respectively, and operates branches in Yangon, Mandalay, lashio, Myinmu, Muse, Pyay, Kyobinkauk, Kaukmu, Kyaukme, Naungcho, Myanaung and many other cities such as Kawtkhine, Hinthada, Pathein, Moneywar and Maubin. TMH is listing on the YSX just as trading in the shares of the four existing listed companies has fallen to a low. The Myanmar Stock Price Index closed Tuesday at , with just 14,774 shares exchanging hands. At its high on March 29, 2016, the index closed at 1,322.58, with more than 210,000 shares traded. Source: Myanmar Times PwC December

20 Newspapers Eleven Myanmar Foreign investment reaches US$4.7 billion so far in Dec 2017 Foreign investment volume has reached more than US$4.7 billion until November of the fiscal year, a source from the Myanmar Investment Commission said. The meeting No 16/2017 of Myanmar Investment Commission was held at the office of Directorate of Investment and Company Registration in Yangon on November 30. The meeting granted a permission to an enterprise to run with foreign investment and approved three enterprises. Moreover, the investment committees of Yangon, Bago and Ayeyawady Regions approved six enterprises during the meeting. The enterprises total 10 and the investment volume is $ million. The 10 approved enterprises include six industry sectors: one each in communications and transport sector, two in the farming sector and one in the livestock and fisheries sector. Until November of the fiscal year, the number of enterprises to run with foreign investment have totalled 136, with an investment volume of $4, million. Under the Law of Special Economic Zone, Thilawa SEZ received another foreign investment of $ million during Therefore, the foreign investment volume has reached $4, million. Investment committees at state and regional levels have also allowed enterprises with foreign investment of US$5 million or K6000 million of local currency. The DICA is opening its branch offices in the states and regions. Source: Eleven Myanmar 4 PwC December

21 Newspapers Consult Myanmar Golden Myanmar Business Exchange Plans $5 Million Data Center 07 Dec 2017 GMBX, which bills itself as Myanmar s only provider of wholesale infrastructure-as-a-service based on OpenStack, is a joint venture between Yangon-based Golden TMH Telecom Co Ltd (GTMH) and Golden 11 Investment International. The company already operates a data center in East Dagon with a current capacity of 100 racks, which could be expanded to about 400 racks, according to Kyaw Naing, CTO of GTMH. The facility was built with assistance from China s Huawei Technologies. In 2016, GMBX CEO Derek Hallmons said that the time was right for foreign investment to come into the country, previously known as Burma. Now that the majority of the country has effective communications, Myanmar has hit a critical point in its telecommunications evolution. It is time to look at what other services will empower businesses and ensure support for the influx of foreign investment, he said. But flow of cash into the nation has stalled. After Aung San Suu Kyi became State Counsellor and foreign minister of the country in March 2016, key vacancies in government were left unfilled. Notably, the Myanmar Investment Commission (MIC), which approves or denies foreign investment applications, was left without members for three months, causing a backlog in applications. The government has also been slow to reveal its economic policy, leading to hesitance amongst foreign investors. Junya Ishii, senior analyst at Sumitomo Corporation Global Research, told the Financial Times: Many investors, including foreign firms, are waiting to see because the government s economic policy remains unclear. Another concern, particularly for public-facing Western corporations, is the ongoing persecution of the Rohingya people in Myanmar. In November, US Secretary of State Rex Tillerson declared that the Myanmar military, which shares power with civilian authorities, was engaged in ethnic cleansing. Source: Consult Myanmar PwC December

22 Newspapers Myanmar Times US firms interested in Myanmar s digital economy 08 Dec 2017 The US-ASEAN Business Council (USABC) led a business mission to Myanmar in which they held a meeting with the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) to strengthen trade and investments in the country. The USABC is an advocacy organisation for American corporations operating within the Association of Southeast Asian Nations (ASEAN). Alexander Feldman, USABC chief, led a delegation of businesses to meet Yangon Chief Minister U Phyo Min Thein, representatives at the Directorate of investment and company administration (DICA) and the UMFCCI, as well as government officials. USABC met UMFCCI to discuss various sectors, including manufacturing, insurance, banking, legal services, power supply, medicine, IT, food production, cosmetic, automotive and oil and gas. UMFCCI members explained the current economic development in Myanmar and the market opportunities. U Maung Maung Lay, vice president of UMFCCI, said that there s a good chance for American firms to penetrate Myanmar and he welcomes those companies because they are reliable and accountable. The business mission includes Abbot, AIG, Baker McKenzie, Chevron, Coca-Cola, ExxonMobil, Ford, GE, GM, Jhpiego, Kimberly-Clark, Microsoft and Visa. U Wai Phyo, another vice president of UMFCCI, said that companies are interested in Myanmar s digital economy. Myanmar needs to put in place business-friendly regulations in order to strengthen investor confidence and attract more foreign investments, U Zaw Moe Khine, chair and CEO of Pacific AA Motor Ltd, the official dealer of Chevrolet in the country, said. Approved FDI from the US in Myanmar lags behind many Asian and European countries. Source: Myanmar Times PwC December

23 3. Weekly New Tenders PwC December

24 Tenders (Myanmar Government) List Myanmar ICT Development Corporation: Request for expression of interest for Development of a Data Centre within MICT Park, Yangon. Closing Date: 9 Dec 2017 Note: tenders information are collected from and PwC December

25 Tenders (Multilateral organizations) List ADB: SC CAM: Procurement Specialist for Regional Urban and Water Projects Closing Date: 14 Dec 2017 (Individual) ADB: TA-9279 REG: Developing Judicial Capacity for Adjudicating Climate Change and Sustainable Development Issues - Legal Researcher (Myanmar) ( ) Closing Date: 14 Dec 2017 (Individual) ADB: TA-9416 REG: Sustaining the Gains of Regional Cooperation in the Greater Mekong Subregion - Regional Cooperation Specialist ( ) Closing Date: 14 Dec 2017 (Individual) WB: Evaluation of Local Stakeholder Engagement in the Climate Investment Funds Closing Date: 19 Dec 2017 Note: tenders information are collected from PwC December

26 Tenders (Multilateral organizations) List WB: PMR - Development of monitoring, reporting and verification protocols Closing Date: 05 Jan 2018 ADB: TA-9307 MYA: Strengthening Climate and Disaster Resilience of Myanmar Communities - 3 Package 3: Disaster risk financing specialists ( ) Closing Date: 05 Jan 2018 ADB: TA-9307 MYA: Strengthening Climate and Disaster Resilience of Myanmar Communities - 4 Package 4: Disaster resilient microfinance ( ) Closing Date: 07 Jan 2018 Note: tenders information are collected from PwC December

27 4. MIC Permitted Projects PwC December

28 MIC Permitted Projects (Meeting 16, 2017) No. Name of Company Type of Investment Form of Investment 1 Haizhiyuan Aquatic Products (Yangon) Co., Ltd Processing, freezing, packing and marketing of aquatic products such as all kinds of sea fish and shrimp under normal system Wholly Foreign Owned 2 Eden Hotel & Resorts Co., Ltd Gold club hotel services Myanmar Citizen Investment 3 Yangon Airport Group Co., Ltd Ground handling services Myanmar Citizen Investment 4 Mandalay Business Capital City Development Co., Ltd Construction and operation of urban development Myanmar Citizen Investment PwC December

29 5. Upcoming Events PwC December

30 Upcoming Events (December 2017) List Date Location Name of Event Sector Price Focus Points Dec 2017 Yangon Myanmar International Textile & Garment Industry Exhibition Garment Free This event showcases products like Myanmar International Textile & Garment Industry Exhibition will be a premiere show, which will be concerned about the machines for textile and garments Dec 2017 Yangon Myanmar Agrotek Foodtek Machinery Free The exhibitors of the event will be exhibiting some of the latest products and services in the event such as : Preprocessing, Injection & blow moulding, Recycling, Semi-finished products & technical parts, Rubber & Synthetic Fibre, Adhesives, Fillers, Extruders & extrusion lines. PwC December

31 Upcoming Events (January 2018) List Date Location Name of Event Sector Price Focus Points Jan 2018 Yangon Myanmar Agriculture Food & Beverage Trade Show F&B Free The event will showcase the latest in Myanmar Agriculture, Food Processing, Beverage, Procurement and Allied Sectorsproduce, manufacture and practice in Myanmar and abroad, making it a significant platform for business partnershipsworldwide Jan 2018 Yangon Myanmar Oil Gas & Power Summit Energy Free Organized by the Centre for Management Technology Pte. Ltd and the conference will cover areas like Recent PSCs Development & Upcoming Tender for Upstream Oil/Gas Blocks, Myanmar Offshore Exploration Updates, Realizing LNG Imports Potential EPC Markets, Materials Procurement & Skilled Engineers Deployment, Petroleum Products Demand & Import Requirement for Gasoline, Diesel, LPG, etc, Managing Export & Domestic Consumption for Oil, Gas & Electricity. PwC December

32 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. 32