PwC Myanmar Weekly Business Intelligence Issue October 2017

Transcription

1 PwC Myanmar Weekly Business Intelligence Issue October 2017

2 1. Weekly Key Financial & Business News PwC October

3 Weekly Key Financial & Business News Headlines Rakhine crisis leads Europe to put off IPA ratification Government Will Soon Start to Accept Proposals for 3 Tendered Airports TrueMoney finds a niche in Myanmar s mobile fintech space Water vehicles to launch this Saturday Belt and Road dispute resolution: options for Myanmar PwC October

4 Weekly Key Financial & Business News Headlines Real Estate Exhibition: Record-Breaking Success Real Estate Market Hits Price Floor CBM licensing procedures in the spotlight in Yangon World Bank cuts growth forecasts for Myanmar amid slowing investments Myanmar publishes first socio-economic report for investors PwC October

5 Newspapers Myanmar Times Rakhine crisis leads Europe to put off IPA ratification 02 Oct 2017 THE inking of the investment protection agreement (IPA) between the European Union and Myanmar has been put off until an unknown date. On September 14, the Committee on International Trade of the European Parliament announced that it has postponed its visit to Myanmar, which was meant to finalise the EU-Myanmar investment agreement. The change was due to the recent developments in the country. The committee s chair, Bernd Lange, said that the delegation is postponed until further notice. The EP's International Trade Committee decided to postpone the delegation to Myanmar to an unknown date as it was clear that the current political and human rights' situation in the country, as outlined in the EP's resolution adopted on Thursday 14 September, does not allow for a fruitful discussion on a potential EU- Myanmar investment agreement. It is clear that under these conditions, the ratification of an investment agreement with Myanmar is not possible, he said. On September 14, the legislature adopted the European Parliament resolution on Myanmar, in particular the situation of Rohingyas. A well-placed source within the European business community in the country, who declined to be named due to the sensitivity of the matter, told The Myanmar Times that the delegation cancelled their trip because the position of Brussels is essentially that the signing of the IPA cannot be done under these conditions, in relation to the situation in Rakhine State. The agreement would have been the first standalone investment protection agreement of the European Union with the country. In April, the European Chamber of Commerce in Myanmar stated that the negotiations should be finished within a few months. The IPA is expected to provide a level-playing field for European investors and promote corporate standards, hence boosting EU investments in Myanmar. Source: Myanmar Times PwC October

6 Newspapers VDB Loi Government Will Soon Start to Accept Proposals for 3 Tendered Airports 02 Oct 2017 A market sounding meeting was held on 29 September to exchange some preliminary ideas on the Government s tender for the Heho, Mawlamyine and Kawthaung Airports. The Government had earlier launched tender application forms which were available for purchase. Some 50 to 60 companies had purchased the set per airport, with most of the interest going to Heho. The Department for Civil Aviation is seeking partners in a joint venture or PPP model to finance the renovation and expansion of these airports, as well as to manage the facilities. Proposals are accepted from Myanmar national companies, or from joint ventures between foreign investors and local partners. The DCA stated that the evaluation of the tender for these three airports will be done in consultation with international organizations and the evaluation of the tenders will be based on land price, project costs and equipment costs. Proposals will be accepted starting the middle of October. In preparation, three committees, namely, Pre qualification Selection Committee, Evaluation Committee and Tender Committee will be formed. Applicants which have passed the pre-qualification selection will be able to participate in the tender. A Letter of Intent or a MOU between the local company and the foreign company is required to be in the proposal for the tender. The DCA stated that companies with the solid financial statements, audited reports, companies which are complied with all tax compliance requirements prescribed by the IRD and companies with a strong track record will have a better chance of winning the tender. The DCA mentioned that the concession period can be negotiable based on the investor s needs and the State s benefits from the project. Perhaps this will clarified in the Request for Proposal the DCA announced to issue in due course. Draft transaction documents will also be issued in accord with rules and regulations of Myanmar along with the Request of Proposal. Source: VDB Loi PwC October

7 Newspapers Myanmar Times TrueMoney finds a niche in Myanmar s mobile fintech space 03 Oct 2017 TrueMoney, one of the newest additions to the string of fintech firms vying for a slice of the mobile money market in Myanmar, is upping its game in the face of rising competition. Its strategy is to meet demand for a service to facilitate international mobile cash transfers by Myanmar residents. We have a channel that connects the mobile money market across the region, Siriporn Nimtiparat, managing director of TrueMoney Myanmar Co, told The Myanmar Times. TrueMoney, a Thai company, provides mobile financial services allowing users to deposit cash in mobile accounts online or at physical point-ofsale outlets and transfer cash equivalents to a network of agents domestically or overseas. In ASEAN, TrueMoney is the only fintech company to have established a mobile money network in Thailand, Cambodia, Vietnam, the Philippines, Indonesia and Malaysia, allowing users to transfer money between these countries. Myanmar is our newest market in ASEAN, said Ms Siriporn. TrueMoney is also the only mobile payments firm that allows Myanmar workers in Thailand to send money home, all within the hour. It has established partnerships under which folks can transfer money home through point-of-sale facilities at 7-Eleven convenience stores and True Coffee outlets in Thailand. Currently, some US$2 million is now being transferred between Thailand and Myanmar each day. TrueMoney is expanding in Myanmar at a time when competition for the country s unbanked population is intensifying. Around 80 per cent of the population do not have bank accounts in Myanmar, where most prefer to carry large wads of cash. With mobile money technology, many operators see the country leapfrogging bank accounts altogether. With mobile money services there is no need to set up a bank account. This service is for the unbanked who want to improve their quality of life, said Ms Siriporn. Source: Myanmar Times PwC October

8 Newspapers Myanmar Times Water vehicles to launch this Saturday 03 Oct 2017 AFTER a four-month delay, the new water taxi system is going to officially run on October 7, said Ko Tun Naing Lin, a spokesperson of Tint Tint Myanmar Company. The press conference for the water taxi was held in last May with hopes for the route to start in early June. But due to a delay in the lack of permission from the government, the project has only just being given the green light to begin operations this month. We will hold the opening ceremony on October 6 and officially run [the system] on October 7 for first route. All passengers must use a prepaid card and can easily buy them at ports. They need to buy the card but we can't say the exact card price. We defined K300 for the trip, Ko Tun Naing Lin said. There are a total of six ports along the route from Insein to Botahtaung townships. On October 7, the water taxis will start routes from Botahtaung township and near Augn Zaya bridge, Insein township. Schedules will be displayed at the ports. Passengers can ride by buying an Anypay card at ticket counters of ports. The other two routes will run very soon, he added. The Yangon regional government had promised to implement a water taxi system on the Hlaing river and Nga Moe Yeik creek. Tint Tint Myanmar won the tender to operate this system. The water transport system will run three routes: the Hlaing river, Nga Moe Yeik creek and the river near Thanlyin township. The first phase will run a route from Insein to Botahtaung township. Initially, the government had hoped that the system would rely on just small boats as water taxis.the three routes will now need a total of about ships and boats, which the company has imported from Sydney and Thailand. For first route from Insein to Botahtaung the company will use 16 ships.however, the company started dubbing the project as the Yangon Water Bus because ships, as well as boats, will be carrying passengers. Boats like a Catamaran, which can carry passengers, will be used. Source: Myanmar Times PwC October

9 Newspapers Myanmar Times Belt and Road dispute resolution: options for Myanmar 03 Oct 2017 SINGAPORE is active in Thilawa Special Economic Zone (SEZ) as the dispute resolution centre, while London is stepping up its game in legal services in Beijing s Belt and Road Initiative (BRI). When it comes to infrastructure disputes, Myanmar has a few choices to consider. Some businesses in China seeking to expand their operations beyond domestic borders and to export their products and services internationally have greatly underestimated the legal risks in the process, according to Dr Ying Yu from Oxford. The success of the initiative depends not only on bilateral agreements but also on multilateral agreements between countries, so as to form a comprehensive legal framework within which these countries can operate. Contract disputes are inevitably a risk in largescale infrastructure projects between jurisdictions which are at different stages of development and legal maturity. Professor Teresa Cheng, senior counsel and chair of Asian Academy of International Law, spoke to The Myanmar Times at a sideline interview during the Belt and Road Summit. Jointly organised by Hong Kong s government and the Hong Kong Trade Development Council (HKTDC), the summit was held on September 11 in the city. Professor Cheng argued that the legal structures in many individual member-states within ASEAN are sufficiently advanced to allow the level of international collaboration necessitated by the BRI. The law exists in practice and the task is how to implement the law in individual business cases. Now a lot of the projects might be China s money investing into some of the countries, and the platform would be to use Hong Kong for financing or forming the company and so on, she said, adding that fairness in the legal system is an important consideration for ASEAN and Myanmar. Singapore, London and Hong Kong are all positioning themselves as the legal platforms for BRI projects. Source: Myanmar Times PwC October

10 Newspapers Myanmar Business Today Real Estate Exhibition: Record-Breaking Success 04 Oct 2017 Over $12 million in property was sold at Myanmar s largest real estate exhibition. Organized by the nation s leading online property sales portal, imyanmar House, the 6th annual event was the largest in Yangon to date. Attended by hordes of visitors and buyers, the exhibition shattered the records of the five previous exhibitions in terms of property sold and number of attendees. Everything from affordable apartments to luxury condominium from 50 of the region s top construction companies were up for sale, U Nay Min Thu, director of imyanmar House.com, said. Ground-breaking incentives ranging from discounts to long-term installment plans contributed to the success of the event. For the first time, developers partnered with local banks to offer customers extended payment plans, such as a 50-month payment plan for a K50 million condominium. Adding to the palpable excitement, were the murmurs about the imminent passage of bylaws to the Condominium Law to permit non- Myanmar citizens to own property. We welcome to condominium law. Our current laws are slightly xenophobic and significantly hamper foreign investment. Additionally, not only because it s in our best interest, but we are egalitarians, we want all citizens to be homeowners. We are working with private construction companies, developers, and government ministries to expand our services, U Nay Min Thu, said. The three-day exhibition selected 7 best sellers of 50 companies from Yangon, Pathein, and Taungyi and showcased their different condominium, apartments, and single house projects. Over the course of the three-day exhibition, seminars with speakers from some of Yangon s most successful real estate companies informed and inspired guests. Source: Myanmar Business Today PwC October

11 Newspapers Myanmar Business Today Real Estate Market Hits Price Floor 04 Oct 2017 The property and real estate market have sunk to their lowest point since 2012 after an especially bad two year decline. On the back of recent market analysis, property brokers conclude that 2017 is the worst year in recent memory for the real estate market as demand has sunken despite an increase in supply. Despite our best efforts, prices continue to slide. The price of property is a result of supply and demand but also deeply correlates to the country s political stability and the perception of such. If the latter isn t remedied, there is little chance of the same occurring for the former, said U Khin Maung Than, Chairman of Myanmar Real Estate Service Association (MRESA). Prices cannot fall anymore, we ve hit the floor, MRESA s chairman U Khin Maung Than, added was the best year on record for the property market as demand and prices were both high. But, there has been a considerable decline since 2015, with prices and demand bottoming out in 2017.Experts say that during the U Thein Sein presidency the property market was used as a vehicle for money laundering, thus appearing appeared highly lucrative and prosperous. However, 2015 witnessed the induction of the NLD government, the spur of tax collection (the Internal Revenue Department increased the property tax to 30 percent), and efforts to improve transparency, stimulating the slow deflation of the property bubble. Currently, only apartment renting is active and very few of the new luxury properties being developed have been being sold, U Thaw Zin, Managing Director of Myat Taw Win Construction Company, said. In hopes of a market rebound, developers and real estate brokers patiently await parliamentary approval of bylaws to the Condominium Law that will permit foreign property ownership. They shouldn t hold their breath. Experts say the price slide was imminent because years of money laundering and state-regulated prices created an artificial and unsustainable price bubble. Source: Myanmar Business Today PwC October

12 Newspapers Myanmar Times CBM licensing procedures in the spotlight in Yangon 05 Oct 2017 The Central Bank of Myanmar (CBM) should allow financial organisations including fintech companies to operate only after confirming that their business models are credible and licensed, said MP Daw Sandar Min from Seikgyi Khanaungto township during a Yangon Region Parliament session on October 3. The issue was brought up after fintech company Ok Dollar was given a Mobile Financial Services (MFS) license by the CBM in August, one year after it started operating, and raises questions on the Central Bank s licensing procedures. ''As far as I know, Ok Dollar has been operating since June 2016 but is not connected to any bank. Yet, they have been operating unofficially for about one year before receiving a license in August, said Daw Sandar Min. Under the rules and procedures set by the CBM, fintech companies are permitted to transfer a limited amount of money. But OK Dollar was providing unlimited money transfers to everyone before getting the license and the Central Bank did not take any action. The World Bank said this is a dangerous situation which encourages money laundering when the transfers are not regulated by the Central Bank, said Daw Sandar Min. License issues Operated by the Myanmar-based e-commerce firm Internet Wallet, OK Dollar provides a service which enables users to deposit, withdraw, send and receive money using an online account or wallet. Users can also pay for a range of goods and services. Ok Dollar started its business under a microfinance license while waiting for approval of its application for an MFS license from the CBM. Before receiving its license, OK Dollar claimed it already had 100,000 users. More broadly, the issue draws light on the CBM s licensing procedures for financial services and fintech companies in Myanmar. Source: Myanmar Times PwC October

13 Newspapers Myanmar Times World Bank cuts growth forecasts for Myanmar amid slowing investments 05 Oct 2017 The World Bank has cut its growth forecasts for Myanmar, citing that investment demand slowed down as businesses wait for greater clarity of Nay Pyi Taw s economic agenda. In its latest report released October 4, it cut Myanmar s growth forecasts by 0.6 percentage points for to 6.4 percent. Growth over the medium-term is also reduced to an average of 6.9pc per year. Earlier this year in April, the bank stated that economic growth is projected to average 7.1pc per year over the next three years. Myanmar s macroeconomic environment remains stable, though economic growth is slowing to 5.9pc in compared to 7pc in , weighed down by slower investment demand, the Washington-based lender noted. Despite notable reforms and strong foreign investment commitments, investment demand decelerated as private investors bided their time pending greater clarity in the government s economic agenda, the World Bank said. The World Bank s forecasts have not taken into account the implications of the Rakhine crisis. These projections do not factor in any longerterm impact of the ongoing insecurity in Rakhine State, which if it persists could have significant adverse effects by slowing foreign investment. The economic impact of the recent insecurity in Rakhine State may be substantial if it deters investors, it said. What has affected the economy and its growth prospects though, is lower gas prices as well as a recent import ban on pulses and beans, which were two of the challenges highlighted in the World Bank s report. However, the institution expects a bounce in agriculture activity in the months ahead. That is likely to support stronger growth in rural incomes and contribute to declining poverty. Poverty is projected to decline from 6.5pc in 2015 to 4pc in 2020 if agricultural demand and incomes translate into higher rural labour demand and wages. Source: Myanmar Times PwC October

14 Newspapers Myanmar Times Myanmar publishes first socio-economic report for investors 05 Oct 2017 The Directorate of Investment and Company Administration (DICA) in partnership with the German Corporation for International Cooperation (GIZ) have published a detailed report entitled The Socio-Economic Atlas of Myanmar. For the first time, the report will provide official details and statistics on Myanmar's geography, population and climate as well as its education transportation, healthcare and communications systems according to each region. In the past, foreign investors encountered many difficulties in obtaining data on Myanmar. They had to travel to the related departments to collect details on the various sectors, which was tough work. Now with this report, investors can get access to information on any type of business they want to do, U Thitsar, private sector specialist at the World Bank told The Myanmar Times. The report will not only help investors at a time of rising interest in Myanmar s economy but also organisations and individuals responsible for drawing up policies or planning public projects. "Take urban planning projects for example. Which locations should they develop? Which locations have the densest population? As the report also includes information on infrastructure requirements such as roads and bridges, it would greatly benefit policy makers," said U Thitsar. The release of the report comes after a separate report entitled Cost of Doing Business was published by DICA and GIZ earlier this year. The two reports contain sufficient data and information required to make investment decisions in Myanmar, U Thantsin Lwin said. The statistics in the book are based on 330 villages and towns in 15 Regions and States since This includes the population, religions, area, number of townships, wards and villages of each Region and State. Source: Myanmar Times PwC October

15 2. Weekly Investment News PwC October

16 Weekly Key Investment News Headlines Gobi Partners aims for second close of ASEAN Growth Fund at $100m by 2017-end Foreign firm to supply 5,000 transformers Myanmar: Karen Enterprises, IDPM aim to raise $100m via ICO for city development Myanmar: Global Agriculture, Delicious Food get nod for investment plans Some 26% of Zone-B shares in Thilawa SEZ project sold out PwC October

17 Newspapers Deal Street Asia Gobi Partners aims for second close of ASEAN Growth Fund at $100m by 2017-end 02 Oct 2017 Shanghai-based venture capital firm Gobi Partners aims to make a second close of its Meranti ASEAN Growth Fund at $100 million by the end of Investors backing the fund include institutional investors, global and local corporates, said Kay Mok Ku, partner at the VC firm. Aiming to raise a total of $200 million, the fund will concentrate on cloud services, e- commerce, fintech and Muslim-focused tech (also known as Taqwa tech). It will build a portfolio of 15 companies or more, with investment ticket sizes ranging from $5 million to $20 million per transaction. Gobi Partners made a first close of the fund at $50 million (RM million) in August this year backed by limited partners Malaysia Venture Capital Management Berhad (MAVCAP), Korean home shopping company GS Shop and Indonesia-based investment firm CKM. In August, Gobi Partners and Singaporeheadquartered Golden Equator co-led a $27 million Series B+ in SaleStock, an Indonesian fashion e-commerce platform, marking the first investment from the ASEAN Growth Fund. Ku said Gobi will soon announce more investments from the growth fund. Our area of interest is still the consumer story and it is vibrant outside of Indonesia too. Indonesia is definitely one of the top markets but some of the new deals you will be hearing will be the secondary markets in SEA, he added. During an interaction with DEALSTREETASIA on the sidelines of the Asia PE-VC Summit 2017, Ku said Southeast Asia is in a state of a make or break period where companies that have passed the early stage fundraising period are now facing a lack of funding for their growth stage. I think anybody who can fill the gap will be in a very strong position because you will be cherry picking the best growth stage deals in Southeast Asia. This was something happening in China 10 years ago and now we see it being repeated in Southeast Asia, said Ku. Source: Deal Street Asia PwC October

18 Newspapers Myanmar Times Foreign firm to supply 5,000 transformers 02 Oct 2017 A FOREIGN joint-venture firm will supply US$15 million for the distribution of transformers to the Ministry of Electricity and Energy (MOEE), according to an official statement from the company. Hitachi Soe Electric & Machinery announced on September 28 that they won the tender to supply and distribute over 5,000 transformers. This first tender aims to address Myanmar s increasing demand for electricity. The firm will start supplying the transformers in October and will support 50 percent of Myanmar s electrification by 2020, the company said. Accordingly, Myanmar s electricity demands have been rapidly soaring in recent years due to economic development. And energy infrastructure has become a major issue in order to fulfil that requirement. However, the growing demand has not been answered yet, as 6.5 million household still suffer from the lack access to electricity. In 2016, Myanmar s access to power supply only amounted to 37pc of the population. Full electrification is projected to be achieved by With assistance from the World Bank, the government is already implementing the Myanmar National Electrification project to power households via a national grid. To this end, the yearly-expanding electrification programs intend to build further transformers, assistant secretary U Aung Kyaw Htoo from MOEE told The Myanmar Times. We got loans from World Bank and they are for transmission lines, revamping gas turbines and procurement of related accessories and transformers. It goes according to the action plan and the regular project, he explained. Source: Myanmar Times PwC October

19 Newspapers Deal Street Asia Myanmar: Karen Enterprises, IDPM aim to raise $100m via ICO for city development 06 Oct 2017 Singapore-registered Karen Enterprises and Integrative Design & Project Management (IDPM), which are backing the transformation of Mu Aye Pu village in the Karen state of Myanmar into a city, are looking to raise $100 million via an initial coin offering (ICO) for the project s second phase of development. The organisations are considering the capital raise through ICO either in Liechtenstein or Singapore depending on regulations, said Nigel Grier, development director at the Mu Aye Pu Development Corporation registered in Singapore and cofounder of Karen Enterprises. As they mull the option, the organisations are also talking to potential investors and partners such as Italian- Thai Development Public Company and Japan s Mitsui. The second phase of the project will be for the essential infrastructure work which will include formalising the transit between Thailand and Myanmar and to make it possible for people to enter Mu Aye Pu from Thailand. There will be connectivity to Thailand. Right now you can cross from Thailand to Mu Aye Pu and there is no customs or immigration, said Grier, who is also the founder of IDPM & Micro-Utility Partners, during an interaction with DEALSTREETASIA on the sidelines of the Asia PE-VC Summit Located on the border of Thailand and Myanmar, Mu Aye Pu, the Karen National Union (KNU) base for the Karen National Liberation Army (KNLA), is located on the bank of Moei River, north of Mae Sot. Karen Enterprises and IDPM are currently also raising funds for the project s survey and master planning. Of the $350,000 required, about $270,000 has already been raised from individual investors. The remaining $80,000 will be raised in return for equity in Mu Aye Pu Development Corporation. The $350,000 raised so far amount to a 30 per cent stake in Mu Aye Pu Development Corporation. Karen Enterprises, whose founder and president is Nerdah Mya, the son of the Karen people s leader Bo Mya, will take a 35 per cent stake. Source: Deal Street Asia PwC October

20 Newspapers Deal Street Asia Myanmar: Global Agriculture, Delicious Food get nod for investment plans 06 Oct 2017 Global Agriculture Joint Venture Co Ltd, a joint venture between Jade King & Queen Gems & Jewellery Co Ltd and British Virgin Islands registered Cruilight Ltd, has received approval for a $115 million investment in the plantation, production and sale of teak, according to an official from the directorate of Investment and Company Administration (DICA). Jade King & Queen Gems & Jewellery Co Ltd involved in jade mining in Hpa-kant, Kachin state is part of the Excellent Fortune Development Group. The company also operates a teak plantation business. Having worked on the Mya Sein Taung Nyo Teak Plantation in Teikgyi township in Yagon and Tharyarwaddy township in Bago, its plantation covers about 10,000 acres. The local company recently set up the joint venture which was approved last month. Outside teak plantation and production, Jade King & Queen has also been working on rubber extraction in Nyaung Chaung Rubber Yard in Tha Htone township, Mon state. Agriculture is among the ten prioritized sectors for investment in Myanmar, with timber-related businesses, including setting up teak and rubber plantation, being one of the priorities envisioned by the MIC. The official from DICA said they welcome such kind of investment in teak plantation and production as very few investors are interested in such long-term commitments. Delicious Food Ltd to invest $4.4 million in food and consumer products Yangon-based Delicious Food Ltd, the producer of well-known brand One Tea, will be putting in an investment of K6 billion ($4.4 million) into the production of food stuff and consumer products. The investment was approved in August at a new location in Sakhang Gyi Village, Hlegu township, Yangon. Delicious Food Ltd currently has a factory in Hlaing Tharyar Industrial Zone. The firm is led by Vinood Kumar, who also heads other companies including, Taung Pyar Dan Co Ltd, Shwe Ayar Nadi Co Ltd, Malikha Automobile Co Ltd, Drink Tech Company, Consumer Goods Myanmar Ltd, Food, Consumer Goods Distribution Ltd and Hla Hla Pa Pa Development Co Ltd. Source: Deal Street Asia r-global-agri-jv-delicious-food-83575/ PwC October

21 Newspapers Eleven Myanmar Some 26% of Zone-B shares in Thilawa SEZ project sold out 07 Oct 2017 The total foreign investment in Thilawa Special Economic Zone Project has exceeded US$1.1 billion (1.363 trillion kyat), said Myint Zaw, officer and general manager of Myanmar Japan Thilawa Development Ltd. We have sold out 26 per cent of Thilawa SEZ (Zone-B). The construction of Zone-A is 96 per cent completed, he added. Currently, 17 countries have invested in Zone-B with Japan topping the list of investors. Many countries have offered to inject their investments into Thilawa SEZ project. Some investors want to invest in labour-intensive and import-substituting industries. From until July of fiscal year, the total investments in Thilawa SEZ project amounted to nearly $1.148 billion, according to the Directorate of Investment and Company Administration. Investments in the Myanmar industrial sector amounted to $ million, accounting for more than 73 per cent of the total investments. The goods trading sector reached over $101 million, the service sector over $81 million, the transport and logistics sector over $77 million, the real-estate development sector, over $30 million and the hotel sector more than $12 million. The FDI in Thilawa SEZ project is expected to reach up to $1.7 billion with investments coming from around 150 foreign companies, said Aung Htoo, deputy minister for commerce. Exports from Zone-A would reach about $600 million yearly, accounting for five per cent of the total foreign export volume. Thilawa SEZ project has a total area of 2,400 hectares. Zone-A has an area of 400 hectares and Zone-B, 101 hectors. Source: Eleven Myanmar PwC October

22 3. Weekly New Tenders PwC October

23 Tenders (Myanmar Government) List No applicable Tenders announced for the week ending 6 October 2017 Note: tenders information are collected from and PwC October

24 Tenders (Multilateral organizations) List Greater Mekong Subregion Health Security Project - ICS4 Communicable Diseases Control Expert, Closing Date: 13-Oct-2017 (Individual) Strategies for Financing Social Protection to Achieve Sustainable Development Goals in Developing Member Countries - Social Protection Officer, Closing Date: 15-Oct-2017 (Individual) Note: tenders information are collected from PwC October

25 4. MIC Permitted Projects PwC October

26 MIC Permitted Projects (Meeting 13, 2017) No. Name of Company Type of Investment Form of Investment 1 Myanmar Conch Cement (Myanmar) Co., Ltd (China) Manufacturing and Marketing of Limestone and Cement Joint Venture 2 BASF Myanmar Manufacturing Co., Ltd (Singapore) Manufacturing and Sales of Construction Chemicals Wholly Foreign Owned 3 The Yangtze River International Investment Group Co., Ltd Construction, Leasing and Management of Commercial and Residential Buildings Joint Venture 4 Air Products (Myanmar) Co., Ltd 5 City Man Co., Ltd Refining, Distribution and Sale of Oxygen, Nitrogen, Carbon Dioxide, Argon Private Healthcare Services Joint Venture Myanmar Citizen Investment 6 Yadanar Su Co., Ltd Production and Distribution of Liquefied Petroleum Gas Myanmar Citizen Investment PwC October

27 5. Upcoming Events PwC October

28 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. PwC October

29 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. PwC October

30 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. 30