Thura NewsViews. Myanmar Economics and Politics. Weekly Newsletter. Issue 240, October 27, Politics

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1 Issue 240, October 27, 2016 Thura NewsViews Politics Challenges ahead in peace process, warns think-tank Despite some progress since the new government came to power, those involved in the country s peace process should consider a fresh approach, the International Crisis Group (ICG) has said. In a new report, entitled Myanmar s Peace Process: Getting to a Political Dialogue, the Brussels-based think-tank warned that issues included rigid timeframes on major peace conferences, a low level of capacity for the government s peace negotiating team and getting non-signatories of last October s Nationwide Ceasefire Agreement (NCA) on board. The report was released after the first anniversary of the NCA, which was on October 15. The ICG reported the current process is one of the best opportunities for a political settlement that could end decades of civil war. The National League for Democracy s impressive mandate from last November s election lends it government more credibility than the previous administration. ICG said the announcement of plans to hold Panglong 21 conferences every six months could lead to issues with inflexibility. Also, the National Reconciliation and Peace Centre, which replaced the previous Myanmar Peace Centre, only has a handful of staff. There is thus a worrying lack of institutional capacity to support peace-process mechanics, and the armed groups also have little support capacity, the report said. By-election date set for April 1 The Union Election Commission (UEC) has announced that by-elections to fill seats vacated after last year s general election will be held on April 1, The date is exactly five years after the National League for Democracy (NLD) won a sweeping by-election victory in According to a UEC announcement, candidacies must be put forward between November 28 and December 7. Final candidate lists will be released on January 2 and the official campaigning period will be from late January until the end of March. By-elections will be held in 18 constituencies in eight states and regions. The highest number will be in Shan State, where the Shan Nationalities League for Democracy (NLD) has said it will compete for all seven seats available. The Union Solidarity and Development Party (USDP) will also be looking to make up some of the ground it lost in November s vote. The USDP said it will have its candidate list ready in early November. A local report quoted NLD central executive com- Thura Swiss Ltd. Economic Research Shwe Hinthar B /2 Miles Pyay Road 11 Qtr. Hlaing Tsp. Yangon, Myanmar Phone +95 (0) Fax +95 (0) info@thuraswiss.com October Highlights A first batch of Myanmar refugees in Thailand has been voluntary repatriated to their homeland, in what the UN has called a milestone. Indian authorities are aiming to boost border trade with Myanmar, particularly into impoverished Chin State. Yangon authorities are planning to host a low-cost housing exhibition in the coming weeks.

2 mittee member U Win Htein as saying that the party will compete in all available seats, adding that their list will likely be announced some time in November. Nine of the seats available are in the Lower House (Pyithu Hluttaw), three in the Upper House (Amyotha Hluttaw) and six in state and regional parliaments. Most of the positions are available because MPs have been promoted to positions in the government and can no longer sit as parliamentarians. Among the vacated constituencies is Kawmhu Township, which was won in November by State Counsellor Daw Aung San Suu Kyi. Economy Government passes new investment law President U Htin Kyaw signed off the country s long-awaited Myanmar Investment Law on October 18. The new law combines the 2013 Myanmar Citizens Investment Law and the 2012 Foreign Investment Law. The bylaws are yet to be approved, said a local report. Before the rules and regulations are revealed, Daw Aung San Suu Kyi and the Ministry of Planning and Finance will make government policy clear, Dr. Maung Maung Lay, vice chairman of the Union of Myanmar Chambers of Commerce and Industry (UMFCCI) said. One key aspect of the new law is that some decisions regarding investments would be decentralised from the Myanmar Investment Commission (MIC) to states and regions, although not in all cases. Some tax exemptions, previously in place for companies with foreign investment, will also be removed as part of attempts by the government to level the playing field for local and foreign companies. The new law allows to set tax incentives for investments into under-developed parts of the country. Companies and Investments IFC to fund sustainable hotel development The International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, will lend up to US$ 13.5 million to a local hotel development group. In a statement, the IFC said the loan is for United International Group Limited, which owns the Amata chain of hotels, and would be used to develop a 144-room hotel in Bagan, and a 130-room property at Inle Lake. The IFC said both properties will be developed in line with building systems that will reduce energy, water and material consumption by at least 20 percent compared with similar buildings. The project at Inle Lake, which has seen rapid growth in recent years so that environmentalists recognize the lake s future at threat, will be in line with conservation objectives of the lake. Tourism, as a leading driver of economic growth and job creation, can play a major role in poverty reduction in Myanmar, particularly for women and young people. But for this to happen, the sector must be developed in a sustainable manner, Philippe Le Houérou, IFC Executive Vice President and CEO, was quoted as saying. Myanmar in Figures GDP (PPP): $283.5bn (2015) GDP (official ex.rate): $66.98bn (2015) GDP growth rate: 8.3% (FY proj.) Population: 51.4mn people (2014) Inflation: 11.5% (2015) Foreign trade: $22bn (2015) FDI: $64bn (31/07/2016) International reserves: $9.4bn (Dec 2015) CBM rate Kyat/$ = 1285K/1$ (27/10/16) For advertising with Thura Swiss please contact us by info@thuraswiss.com or by phone +95 (0) Please note that our advertisement contracts are based on a subscription of a minimum of 4 weeks. 2

3 Yoma Strategic makes tourism acquisition According to a local report, Singapore-listed Yoma Strategic Holdings has signed an agreement with First Myanmar Investment (FMI) and two other companies to create a company that will focus entirely on the country s growing tourism industry. The complex agreement is being billed as a reverse takeover (RTO) and will see FMI and Yoma, as well as a company called Exemplary Ventures Limited, transfer many of their tourism operations into a new company, which as yet has not been named, that will be entirely owned by a group named SHC Capital Asia Limited. SHC will be overseen by Michel Novatin, who has experience working with Kempinski Hotels, Danone Group and other companies, according to the report. Yoma and FMI currently own the Balloons over Bagan business, the Pun Hlaing Lodge in western Yangon and a plot of land close to the Bagan temples that has been planned for a tourism and hospitality development. These projects will be moved to the new enterprise, the report said. Additionally, Exemplary Ventures will move its Hpa-an Lodge Hotel in Kayin State and a tourism company called Asia Holidays to the new venture. Yoma will hold a percent stake in SHC, with FMI and Exemplary Ventures holding a roughly equal amount of the remaining shares, said a Yoma press release. The idea is to build a combination of large hotels in major cities and smaller lodges [in towns], Yoma chief executive Melvyn Pun was quoted as saying in the report. SMI planning to sell tower business to Hong Kong firm Singapore Myanmar Investco (SMI) is planning to sell off its telecommunication tower building operations to Hong Kong s Shining Star International Holdings Limited for about US$ 12.7 million, according to reports. An article in Dealstreet Asia said that SMI will shift its focus to operations in the areas of duty-free retail, food and beverage ventures and auto services. With Myanmar set to benefit further from favourable trends such as tourism, foreign investments and urbanisation, the proposed divestment of our telecom tower business will result in a greater concentration of our efforts behind our highest-potential growth opportunities in Myanmar, said Mark Bedingham, SMI president and CEO. SMI already operates retail space at the Yangon International Airport and has opened chains of restaurants and coffee shops with more locations expected in early Shining Star International Holdings has operations in real estate, hotels and tourism, property management, education and healthcare. 3

4 Events Name Details Organizer/Ministries Contact Information Myanauto 16 Date: October 2016 Bus & Truck Myanmar 16 Date: October 2016 Myanenergy 16 Date: November 2016 Mandalay International Livestock & Agriculture Show Venue: Mandalay Hill Resort, Mandalay Date: November 2016 Myanmar Livestock Federation, Silver Sea Media Tel: +95(0) th Myanmar Oil, Gas & Power Summit Venue: Meila Hotel, Yangon Date: November 2016 CMT 6th PET Asia Outlook Venue: Park Royal Hotel, Yangon Date: November 2016 CMT Myanmar Security Expo 2016 Venue: Tatmadaw Hall, Yangon Date: November 2016 MP International (MPI) Startup Weekend Yangon Venue: MICT Park, Yangon Date: November 2016 Kanaung Hub bmdwmm/ Offshore Convention Venue: Sule Shangri-La Hotel, Yangon Date: November 2016 Neoventure Corporation Agri Livestock 2016 Venue: Tatmadaw Hall, Yangon Date: December 2016 Myanmar Supply Chain Summit Venue: Novotel Yangon Max Date: 13 December 2016 Chain Media Tel: Myanmar Oil and Gas Summit Venue: Sedona Hotel, Yangon Date: January 2016 Oliver Kinross Ltd +44 (0) BuildTech Mandalay Venue: Mandalay City Hall, Mandalay Date: February 2017 Sphere Exhibits 4

5 Tenders Ministry of Electricity and Energy: Open Tender Myanma Electric Power Enterprise under the Ministry of Electricity and Energy has invited an open tender for the supply of following items in Myanmar Kyats: # Tender No Description Quantity 1) 10 Gas Pipe 132 Nos 2) 10, 90 Bend 2 Nos 18/EPGE/ ) 10, 45 Bend 2 Nos 4) 6 x 4 Reducer 3 Nos Tender documents are available at Office No. 27, Myanma Electric Power Enterprise, Ministry of Electric and Energy. Tender applications are to be submitted no later than 17 November Further information can be obtained by phone at +95 (0) , Ministry of Electricity and Energy: Open Tender The Department of Hydro-power Implementation under the Ministry of Electricity and Energy has invited an open tender in Myanmar Kyats for the construction of an Equipment Warehouse (80m x 17m) and a Penstock Workshop (22m x 50m) at the Upper Ye Ywar Hydro Power Project in Myanmar Kyats. Tender documents are available at Office No. 27, Department of Hydro-power Implementation, Ministry of Electricity and Energy, Nay Pyi Taw. Tender applications are to be submitted no later than 3pm on 11 November Further information can be obtained by phone at +95 (0) Ministry of Health and Sports: Open Tender Ministry of Health and Sports has invited an open tender for the construction of 17 Buildings including clinics, warehouses, apartment buildings in Magway Division. Tender documents are available at the Department of Health, Magway. Tender applications are to be submitted no later than 4pm on 18 November Further information can be obtained by phone at +95 (0)