pwc myanmar weekly business intelligence · pwc | september 2017 6 fpb considers ysx exit first...

PwC MyanmarWeekly Business Intelligence

Issue 7522 September 2017

www.pwc.com/mm

PwC | September 2017

1. Weekly Key Financial & Business News

2


Weekly Key Financial & Business NewsHeadlines

Low-Cost Housing Loans Extended - Ministry

FPB Considers YSX Exit

Southern Shan State to receive electricity

Yangon’s growing trade demands deeper port to ease logistics woes

3

New insurance scheme to provide aid in obtaining loans



Myanmar parliament to Thai loan for Dawei SEZ road

Three gas turbine power plants expect to generate sufficient electricity supply next year

China, Myanmar discuss establishment of border economic cooperation zone

Asia’s next infrastructure boom

4

Courting investments and fostering ties with China



Myanmar exports 2m tonnes of oil via pipeline over 4 months

Hantharwaddy airport priority for government

Does Myanmar need a deep-sea port?

Lack of investment throttles transport infrastructure

5

PwC | September 2017 6

FPB Considers YSX Exit

First Private Bank (FPB) is considering delistingfrom the Yangon Stock Exchange (YSX) sitingsliding share prices.The board of directors of FPB met and announcedthe option of delisting from the nascent capitalmarket on September 10, U Myint Zaw, CEO ofFPB, said.On January 20, FPB became YSX’s fourth listedcompany and began trading at K39,000 pershare. Since, prices have trickled down to theircurrent valuation of K24,000 per share.According to 27th annual board of directorsmeeting, the companies feels this move is urgentin order to protect the shareholders from losingfurther value.However, the company is in the process of col-lecting input from larger shareholders and indus-try experts before making any final decisions, UMyint Zaw said.Delisting from the fledging market would be det-rimental to the reputation of the YSX. Theexchange has failed to attract new companiessince FPB listed 8 months ago and a back-stepnow, as the economy slows and investor

confidence shakes, could be ruinous.“It is not good to hear that a company plans todelist from YSX. The impact will go beyond theYSX and other listed companies to affect theeconomy as a whole. But we are still in theconsideration stage and not a final decision yet,”U Thet Tun Oo, a Senior Executive Manager ofYSX, saidAccording to YSX statistics FPB stocks tradevolume amounted to K22 million in the first weekof September while August saw an even-keeledK110 million traded.The four listed companies on the YSX are FirstMyanmar Investment, Myanmar Thilawa SEZHoldings Public Limited, Myanmar Citizen Bank,and First Private Bank.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/fpb-considers-ysx-exit

NewspapersMyanmar Business Today

18 Sep 2017


Low-Cost Housing Loans Extended - Ministry

The Construction and Housing DevelopmentBank (CHDB), in cooperation with the Ministry ofConstruction and the Myanmar Construction En-trepreneurs Association, will elongate federal loanrepayment plans from 10 years to 15 years, U ZawWin, Managing Director of CHDB, said.Shortly after the NLD was assumed office in 2016they announced plans to build 200,000 low-costapartments in cities across Myanmar in an effortto combat shortages of affordable housing.To be eligible for low-cost housing, the Ministry ofConstruction mandated that each buyer mustdeposit 30 percent of the home’s value in asavings account at CHDB.To open the account, applicants must show theirnational identification card, a letter from wardadministrators, and a set-up fee of K10,000. Onlyafter will they be eligible for a housing mortgageworth the remaining 70 percent of the property’svalue.There savings accounts have no maximum limitand come with a very attractive 8.5 percent inter-est rate.“CHDB began introduced the housing scheme in

August 2016 and as of March 2017 more than5,000 individuals opened saving accounts,” UWin Zaw said.Extending loan repayment will lighten the fi-nancial burden on new home owners and be moreattractive to a larger amount of citizens.Currently, there are more than 18,000 housingaccounts at CHDB Bank with more than 600apartments already sold to qualified buyers.There are more than 2,000 apartments beingdeveloped by Minister of Construction to be soldto qualified buyers. These low-cost housingprojects are spread out across Dagon Seikan,Hlaing Thayar, Shwe Linban, Yuzana, Kanaung,and Naypyidaw Townships.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/low-cost-housing-loans-extended-ministry


18 Sep 2017


NewspapersMyanmar Times

Southern Shan State to receive electricity

Electricity will be installed at a total of 416villages in the Taunggyi, Loilen and Langhkodistricts in Southern Shan State between 2018and 2022 according to the Ministry of Electricityand Energy (MOEE) at a press conference lastweek.Currently, just about a third of all the villages inSouthern Shan State have access to electricity,according to MOEE statistics.The project, which will see some 32,674households receiving power, will be funded by a€23.89 million loan from Germany’s Kreditanstaltfür Wiederaufbau (KfW) Bank as well as a €6.54million grant by the Eurozone.The interest rate on the KfW loan is expected tobe low, at just 0.75 percent, said U Tin Aung, chiefengineer at Myanma Electricity Power Enterprise(MEPE). MEPE will be involved in helping toimplement the project. The loan agreement willbe signed this week.Subsequently, international tenders will beinvited for the purchase of 33kv and66kvtransmission lines as well as substationequipment, while local tenders will be invited for

transformers and posts.The project is part of the government’s NationalEnergy Master Plan to achieve full electrificationby 2030. It will be implemented with the help ofthe World Bank, Asia Development Bank andJapan International Cooperation Agency.No reason was given for choosing Southern ShanState, which is just one among the many areas inMyanmar which does not enjoy regular access toelectricity. “It is up to the organisations extendingthe loans. I don’t know the exact reason for theirchoice of Southern Shan State,” said U Tin Aung.In Southern Shan State, 30 out of 35 cities haveaccess to electricity while the remaining five citieshave alternatives to generating electricity,according to MOEE statistics. Out of the 4,952villages, 990 receive electricity from the nationalgrid, while another 477 villages receive powerfrom other sources.

Source: Myanmar Timeshttps://www.mmtimes.com/news/southern-shan-state-receive-electricity.html

18 Sep 2017

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Yangon’s growing trade demands deeper port to ease logistics woes

A DEEP-SEA port with access to the commercialcapital should be built to cater for significantvolume increase in trade if Myanmar aspires todevelop into a competitive import-exporteconomy, logistics businesses from the Europeanand Japanese chambers told The MyanmarTimes.European logistics businesses have called for adeeper port to be constructed in Yangon’s deltaregion, but previous studies concluded that suchundertaking would be difficult, a Japaneselogistics expert cautioned.According to a report by the European Chamberof Commerce in Myanmar (EuroCham), the lackof port infrastructure and congestion present asignificant constraint for sea trade. It called forthe establishment of a deep-sea port togetherwith a Special Economic Zone (SEZ) at the deltaregion in order for the country to realise itsgeographical advantage and become a logisticshub in Asia.Members of the EuroCham logistics advocacygroup include Maersk Line Myanmar, Santa FeMobility Services, Dextra Transport, Damco

Logistics Myanmar, Kuehne + Nagel, RhenusMyanmar, Royal Haskoning DHV, Myanmar DHLand CMA CGM.“The existing facilities of ports are questionablefor the traders as there have been serious portcongestion problems at the terminals in the past.For the time being, the current main terminalsare all river terminals which means that shippinglines are unable to bring in larger-sized vessels,”the report stated. It recommended that afeasibility study on the construction of the port beconducted within 12 months.

Source: Myanmar Timeshttps://www.mmtimes.com/news/yangons-growing-trade-demands-deeper-port-ease-logistics-woes.html

19 Sep 2017

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New insurance scheme to provide aid in obtaining loans

Co-operative Bank (CB) is preparing to launch anew Credit Guarantee Insurance (CGI) system sothat it can extend wider financial assistance to thecountry’s small and medium enterprises (SMEs).CGI covers businesses against non-payment ofdebts owed to them by business customers forgoods or services provided on credit terms.As part of that launch, CB Bank opened an SMEcentre at its branch in Thiri Mon,Mayangone,Yangon last week."The Central Bank of Myanmar only defines onetype of loan under which collaterals are requiredfor businesses to qualify. With CGI, many moreSMEs will be able to qualify for loans. We willopen SME centers across the nation,” Daw Naw AlPhaw, 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 termloans and CB-KfW loans under various interestrates depending on the loan type.CB Bank has so far extended over K300 billion tomore than 1,300 businessman from 2013 toSeptember 2017.

"As there are many types of CGI loans, it greatlysupports the businessmen. Now, preparations arebeing made to draft a CGI law to develop thissector further. After enacting a law, a CreditGuarantee Corporation can be formed," GeneralManager of Myanmar Insurance (MI) U KhinMaung Win told the Myanmar Times.

Source: Myanmar Timeshttps://www.mmtimes.com/news/new-insurance-scheme-provide-aid-obtaining-loans.html

19 Sep 2017

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Three gas turbine power plants expect to generate sufficient electricity supply next year

Three new natural gas-fired power plants with thecapacity to generate more than 450 megawatts ofpower are expected to go live before the comingsummer season. That should satisfy the energydemands of the country for 2018, said U KhinMaung Lay, deputy managing director of theMinistry of Electricity and Energy’s (MOEE)Electric Power Generation Enterprise.“The annual electricity demand nationwide isbetween 300MW and 400MW. We plan to runthree new gas-fired power plants that cangenerate 450MW by the next summer. This willmeet the country’s demands, particular thosefrom Yangon,” he said at a press conference lastweek.The power plants are Thadon power plant in MonState, Thaketa power plant in Yangon Region andMyingyan power plant in Mandalay.State-owned Thadon power plant, which iscurrently being built by China EnergyEngineering Group Co. (CEEC), is expected togenerate 120MW of power and is about 80percent complete.Meanwhile, the Thaketa power plant, a joint

venture between China’s Union Resources andEngineering and the MOEE, is more than threequarters complete. If the plant, which is expectedto generate 106MW of power is successful, it willsupport most of Yangon’s electricity demand, saidmember of Yangon Electricity Supply CorporationU Aung Kyaw Oo.Construction of the third and largest plant, the225MW Myingyan plant, is about 90pc complete.When it goes live, it is expected to provide longterm power supply to the Mandalay Region. Theplant is now being constructed by Singapore’sSembcorp Industries under a build-operate-transfer agreement with the MOEE.

Source: Myanmar Timeshttps://www.mmtimes.com/news/three-gas-turbine-power-plants-expect-generate-sufficient-electricity-supply-next-year.html

19 Sep 2017

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NewspapersEleven Myanmar

Myanmar parliament to Thai loan for Dawei SEZ road

The Ministry of Commerce says borrowing fromThailand to build a two-lane road that willconnect the Dawei Special Economic Zone toThailand 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 workingon the project’s financial plan.“Officials are working on the Dawei SEZ. As we’reborrowing money from Thailand, the cost for theroad construction is still being calculated. As itwill be a governmental loan, the parliament mustdiscuss it,” says Khin Maung Lwin, a seniorofficial from the ministry.Officials from both countries held a coordinationmeeting recently to discuss the development ofthe Dawei SEZ and nearby areas.Union Minister for Commerce Dr Than Myint meta delegation led by Japanese ambassador TateshiHiguchi in early July to create a new master planfor the economic zone.

Source: Eleven Myanmarhttp://www.elevenmyanmar.com/business/11659

19 Sep 2017

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NewspapersEleven Myanmar

China, Myanmar discuss establishment of border economic cooperation zone

The establishment of China-Myanmar bordereconomic cooperation zone is being discussedbetween the two governments. The government ofYunnan Province has invested US$10 billion inMyanmar, while Myanmar entrepreneurs havealso invested $100 million in the province,according to a press release.The press release came after a regular meetingbetween the Republic of the Union of MyanmarFederation of Chambers of Commerce andIndustry (UMFCCI) and Yunnan ProvincialGeneral Chamber of Commerce (YPGCC).Trade value between Myanmar and Yunnan in2016 reached $6.1 billion. Myanmar's exportvalue amounted to $3.6 billion, and the importvalue to $2.5 billion.Yunnan's investment of $10 billion up to Junethis year mostly went toward hydroelectricity,minerals and agriculture. Ren Guanghua, deputycounsel-director of the Yunnan government'strade department, said the amount constituted 21per cent of the province’s total investment inforeign countries.Meanwhile, Myanmar businesspeople have in

invested in Yunnan's real estate, industry, retailand wholesale trade and hotels industry.Details about the establishment of a bilateralborder economic cooperation zone are still beingcoordinated by officials on both sides. Toe AungMyint, permanent secretary of the Ministry ofCommerce, said when the zone emerges, rawmaterials will be turned into finished goods in thezone, and entrepreneurs from both countries willbe able to establish factories there.

Source: Eleven Myanmarhttp://www.elevenmyanmar.com/business/11670

20 Sep 2017

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Asia’s next infrastructure boom

Infrastructure is essential for development.Roads, railways, ports and power supplies havehelped drive Asia’s growth, allowing its people toget to work and its products to reach markets.For this momentum to continue, the region’sexisting stock of infrastructure must be upgraded.A new generation of transport networks, energyfacilities, and water and sanitation systems mustbe built.The demand for infrastructure across Asia and thePacific far outstrips current supply, according to arecent report by the Asian Development Bankentitled Meeting Asia’s Infrastructure Needs.More than US$26 trillion will be needed between2016 and 2030, or US$1.7 trillion a year, todeliver infrastructure that supports robust growthand is resilient to climate change. That’s doublethe amount currently spent each year.How can we close the gap? Asia’s governmentsalone cannot foot this staggering bill, and theprivate sector can be reluctant, often with goodreason, to shoulder the risk. Coordinated action isthe only way forward. Otherwise, growthopportunities will be missed and it will take

longer for countries to lift their citizens out ofpoverty.Today, only a few countries, notably China amongthe large economies, are investing close to whatthey need. The region will grow by more than 5percent a year on average from now until 2030,and infrastructure will need to keep pace. But,excluding China, the infrastructure investmentgap for the region is estimated to be an additional5pc of GDP. Of the US$75 trillion in global long-term assets from institutional investors, only 1pcis invested in infrastructure.The public sector can close some of the gap bymobilising public finances. Policymakers can raiserevenues, primarily through tax reforms. Also,spending can be reoriented, for example byreducing poorly-targeted fuel subsidies. Finally,countries must determine whether they canincrease borrowings while keeping debt levelsmanageable.

Source: Myanmar Timeshttps://www.mmtimes.com/news/asias-next-infrastructure-boom.html

20 Sep 2017

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Courting investments and fostering ties with China

Myanmar’s economy is inextricably linked toneighbouring China. The country exports morethan half its agriculture produce across theborder, making China one of its largest tradepartners.Meanwhile, China is also the largest investor inMyanmar, with total approved investmentstotaling US$19.1 billion as at August 31. As awhole, foreign direct investments from Chinamake up about a quarter of total FDI intoMyanmar.Yet, total approved FDI from China has slowedover the past fiscal year. To discuss the situation,The Myanmar Times met with Yan Yu, VicePresident of Yunnan Provincial General Chamberof Commerce (YPGCC) for an exclusive interviewduring his visit to Myanmar on September 18.Here’s an excerpt of what was discussed.The Myanmar Times: Foreign direct investments(FDI) to Myanmar have slowed of late. What isholding back Chinese investments to Myanmar?Mr Yan Yu: The most important factor holdinginvestors back is the lack of clarity in governmentpolicies. For example, what was permitted under

the previous government is no longer permittedunder the current government. Things are notclear so it is very risky for investors to invest inMyanmar. They wouldn’t dare to. I hope theMyanmar government will enact laws that providea safety net for foreign investors that protect theirinterests regardless of a change in government.The main reason why big corporations are notentering Myanmar is the lack of electricity andreliable infrastructure provided by thegovernment. If Myanmar can guarantee electricitysupply and provide roads and ports, many moreforeign investors will come in.China focuses on four sectors: real estate,tourism, logistics and agriculture. Tourism is agiven since Myanmar has many beautiful beaches,islands and mountains. Logistics is important forcargo transportation. In fact, there are currentlytwo or three ports being built in Myanmar soinvestors in this sector could increase.

Source: Myanmar Timeshttps://www.mmtimes.com/news/courting-investments-and-fostering-ties-china.html

20 Sep 2017

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Hantharwaddy airport priority for government

THE planned Hantharwaddy InternationalAirport is the only priority in the area of aviationunder the National League for Democracy-ledgovernment, said U Win Khant, permanentsecretary of Ministry of Transport andCommunications.He made his comments in relation to thegovernment’s Transport Master Plan during thesideline interview with The Myanmar Times atMyanmar Global Investment Forum. The eventwas organised by Euromoney on September 12and 13 in Nay Pyi Taw.The concessional agreement negotiations with thebidding winners is expected to be concludedtowards the end of this year and the project is tobe completed within five years following theagreement, U Win Khant added.“This is the major priority for the TransportMaster Plan. We will focus on this airport projectunder this government term.“Due to the capacity of the Yangon InternationalAirport, we will need the new one within fiveyears, according to calculations made by theminister and Department of Civil Aviation

[DCA],” he said.The three existing Kawthaung airport inTanintharyi Region, Mawlamyine airport in MonState and Heho airport in Shan State are going tobe upgraded through a public-private partnership(PPP) system, but the lack of proper PPP policyand guidelines is a major problem, he added.Public-private partnerships between agovernment agency and private-sector companycan be used to finance, construct and operateprojects, such as night markets and public roadnetworks.The Yangon International Airport’s optimalcapacity is 2.7 million passengers but it alreadyserved 3 million passengers in 2013, he went on.

Source: Myanmar Timeshttps://www.mmtimes.com/news/hantharwaddy-airport-priority-government.html

20 Sep 2017

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Myanmar exports 2m tonnes of oil via pipeline over 4 months

OVER 2 million tonnes of crude oil has beenexported to China through the Myanmar-Chinapipeline, according to U Toe Aung Myint,permanent secretary of the Ministry of Commerce(MOC).The pipeline connecting Made Island in RakhineState to Kunming, capital of China’s YunnanProbince was inaugurated on May 2, 2017. BySeptember 1, the export volume exceeded 2million tonnes, according to MOC’s statistics.The project flourished in the framework of the oilexport agreement, signed during President U HtinKyaw’s visit to China in April this year. Thepipeline amounted to US$2.45 billion, with 51percent ownership to China National PetroleumCorporation (CNPC) and 49pc by state-ownedMyanmar Oil and Gas Enterprise (MOGE).CNPC’s subsidiary, South East Asia Crude OilPipeline Company (SEAOP), is currentlyoperating the oil jetty on Made Island.Yearly contractual delivery amounts to 12 milliontonnes upon completion of the first phase and 22million tonnes for the second phase. Moreover,domestic utilisation for Myanmar reaches 2

million tonnes a year, SEAOP’s press releasestated.In return for its export, Myanmar will collect aRight-Of-Way (ROW) exceeding $13 million ayear along with two custom duties. The exactamount for the latter is still to be calculated, saidLi Zilin, SEAOP’s Vice President, at a pressconference in May.ROW refers a type of easement granted orreserved over the land for the oil and gas pipeline.

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-exports-2m-tonnes-oil-pipeline-over-4-months.html

21 Sep 2017

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Does Myanmar need a deep-sea port?

MYANMAR is one of the fastest growingeconomies in the Southeast Asia region, with GDPhaving risen by an average of 7 percent in the pastdecade.The economy has expanded on the back of risingtrade. Since 2010, the volume of containersarriving in Myanmar’s ports is up three times,reaching 1 million twenty-foot equivalent units(TEUs) in 2017. This rise is projected to continue,with the International Monetary Fund forecastingGDP growth of 7.3pc on average in the next fiveyears.With the growth of trade, sea ports have becomean important node in the logistics network as thebulk of the cargo is moved by sea. It is alsopertinent to note that trade in Myanmar isimbalanced, with imports exceeding exports byaround four times.As such, it is important that the country’s portsare operating in a productive manner whichlowers the overall logistics cost for shipping linesand shippers alike.In Myanmar, three key issues need to beaddressed to facilitate port development.

Bottleneck issuesFirstly, the cargo bottlenecks in the logisticssupply chain are concentrated at the Yangon andThilawa ports, where more than 95pc of cargo ishandled. Consequently, any disruption in portoperations would result in costly delays. This wasnever more pronounced than in June 2016, whenpeak congestion at the ports resulted in vesselswaiting for a berth for up to 14 days.Secondly, both the Yangon and Thilawa ports arerestricted by drafts of up to ten metres, allowingships of no more than 2,100 TEUs in size to servethe market. These vessels are significantly smallerthan the 18,000-20,000 TEU ships deployed onAsia-Europe routes. Hence, shipping costs forgoods moved on smaller ships are also higher.Thirdly, vessels calling at the ports are restrictedby navigation issues. For example, the ships canmove in the narrow river channel only duringhigh tide and daylight hours.

Source: Myanmar Timeshttps://www.mmtimes.com/news/does-myanmar-need-deep-sea-port.html

21 Sep 2017

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Lack of investment throttles transport infrastructure

THE country’s transport sector demands US$60billion in investment in the next 15 or 20 years,according to the Ministry of Transport andCommunications. Efforts to develop railways aswell as the aviation and maritime infrastructureare frustrated by the lack of investment.U Win Khant, permanent secretary of Ministry ofTransport and Communications told TheMyanmar Times during the sideline interview atMyanmar Global Investment Forum that thethree existing Kawthaung airport in TanintharyiRegion, Mawlamyine airport in Mon State andHeho airport in Shan State are going to beupgraded through a public-private partnership(PPP) system. The Myanmar Global InvestmentForum was organised by Euromoney onSeptember 12 and 13 in Nay Pyi Taw.Public-private partnerships between agovernment agency and private-sector companycan be used to finance, construct and operateprojects, such as night markets and public roadnetworks.The Asian Development Bank (ADB) andMyanmar government have approved their

country partnership program. The first strategy inpartnership covers the period from 2012 to 2016,and the second phase will be implemented from2017 to 2021.Infrastructure is the most important area in bothstrategy programs, which serves as the majortopic of discussion when ADB president metPresident Htin Kyaw and State Counsellor DawAung San Suu Kyi.“We conducted a few diagnosis studies in order tounderstand the market size.“According to our study, which was done ... in2014-15, demand for investment in infrastructureamounts to $120 billion, covering transport,energy and power as well as telecommunications.Splitting that amount, half of the total, i.e. 60billion, is needed for investment in the transportsector.“For the time period we are looking at is upto 2030.

Source: Myanmar Timeshttps://www.mmtimes.com/news/lack-investment-throttles-transport-infrastructure.html

21 Sep 2017

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2. Weekly Investment News

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Weekly Key Investment NewsHeadlines

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

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Tech Venture Capital Firm Receives $5 Mln Investment

Dept of Urban & Housing Development: Partner Invitation for Housing Project in Dagon Seikkan Township.


NewspapersDeal Street Asia

Myanmar MFI Alliance gets $5m from Asia Impact Investment Fund, return backers

Alliance for Microfinance in Myanmar Ltd, aMandalay-based deposit taking microfinanceinstitution, has received an equity injection of $5million from their existing shareholders and newinvestor, Asia Impact Investment Fund (AIIF),the company announced.The transaction was concluded in August. Alliancestarted its operations in Myanmar in 2014providing financial services and education to low-income households focusing on womenentrepreneurs. “The new investment willstrengthen our capital base and ensure thecontinued expansion, outreach and developmentof our service portfolio,” said Kim Guenkel, CEOof Alliance, in a statement.Existing shareholders, Base of Pyramid Asia(BOPA), a Singapore-based equity investor inmicrofinance institutions, Danish InvestmentFund for Developing Countries (IFU),Copenhagen head-quartered self-governing statefund, Insitor Impact Fund of InsitorManagement, an impact investment firmspecializing in equity, debt and mezzaninefinancing, participated in the latest investment

round. New shareholder, Asia Impact InvestmentFund I, is a joint collaboration between UOBVenture Management Pte Ltd, a subsidiary ofUnited Overseas Bank Limited, and the Singaporebranch of Credit Suisse AG.Being a leading MFI in Mandalay region, Alliancehas reached a gross loan portfolio of about 10.07million in August 2017 through 64,120 activeborrows and aims to promote financial inclusionaround Myanmar by reaching a gross loanportfolio of $36 million by 2019.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/microfinance-firm-alliance-gets-5m-equity-work-financial-inclusion-myanmar-82516/

17 Sep 2017

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Deal-making opportunities galore as Myanmar targets $11b FDI by 2030

Despite mounting political tensions in Myanmar’sRakhine region, Maung Maung Win, deputyminster of the Ministry of Planning and Finance istargeting an inflow of $11 billion in foreign directinvestment per year by 2030. Myanmar’soptimism stems from the frontier marketattracting FDI worth $6.64 billion in 2016-17.“With an aim to become investment destination,we have been making all our efforts to create afavorable investment environment along withsound macroeconomic reform measures,” said thedeputy minister, at the Euromoney Conferencelast week, which saw attendance from a host ofseasoned investors, private equity fund managersand heads of institutional investors. As of August,foreign investment commitments have touched$3.69 billion with the government targeting thenumber to extend up to $6 billion per year by thenext three years. One of the key regulatorychanges, the revised Myanmar Companies Act,with the assistance of ADB, is expected to beintroduced by the year-end which defines foreign-owned companies as those in which overseasinvestors ownership exceeds 35 per cent. Also the

Foreign Direct Investment Plan (FDIPP) has beenimplemented with assistance of JICA.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/deal-making-opportunities-lined-gov-targets-11-b-fdi-2030-82522/

19 Sep 2017

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Malaysia’s Kian Joo Can secures $60m debt for Myanmar manufacturing facility

Kian Joo Can Factory, a leading Malaysia-basedcan manufacturer, and investment holdingcompany, has secured $60 million as debtinvestment from bank financing to support its$100-million facility in Myanmar, a top executiveof the company said.The two manufacturing facilities in ThilawaSpecial Economic Zone in Yangon are expected tobe commissioned by the first quarter of 2018.Kian Joo Can has added an initial share capital of$23.5 million and is going to bring in put inanother $60 million by way of loans from banksin Singapore and Japan, said Ooi Teik Huat,group chief financial officer of Kian Joo Can(Myanmar).The balance of the $100 million total investmentwill come from its internal financing. “We workclosely with international banks and forMyanmar, we work with Singapore and Japanesebanks. Officially, the letter of offer (from thebanks for Myanmar) was received a few monthsback,” said Huat to DEALSTREETASIA duringthe sidelines of the Euromoney conference. Thetwo factories in Myanmar will produce cans in tin

and aluminium, mainly for use by paints andbeverage industry.The company is targeting to meet demand fromboth local and export marketsSet up 1958, Kian Joo Can Factory today has 18factories in Malaysia and three factories inVietnam. Kian Joo Can Factory reported revenueof MYR 440.9 million for the second quarter andsix months ended as of June 2017, compared toMYR 438.8 million for the same period last year.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/malaysias-kian-joo-can-getting-60-m-bank-financing-finish-off-factory-next-year-82620/

19 Sep 2017

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Tech Venture Capital Firm Receives $5 MlnInvestment

Myanmar’s largest online property portal, iMy-anmarHouse.com has announced an investmentof $5 million into a venture capital (VC) fund forlocal tech startups, U Nay Min Thu, ManagingDirector of iMyanmarHouse.com, told MyanmarBusiness Today.“Myanmar’s tech startup community is far smallerand less developed than neighboring countries.The fund will encourage entrepreneurs byrewarding innovation, especially in technology-based startups that move national industryforward,” 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 thestated mission of growing the nation’s techstartup ecosystem by funding 5 to 10 startupsannually.“Tech is the fastest growing industry on the planetwhich can also maintain profitability and an ethi-cal soundness. The fund will invest in local soft-ware or customer-based companies,” he added.“Much of the world’s wealth is moving towards, orbelongs to, the technology sector.

For Myanmar to carve out any kind of aneconomic leadership role in the ASEAN bloc, itmust spur growth in IT skills and engineering aswell as ingenuity and innovativeness. I believethere is potential for technology based companiesto grow in Myanmar,” U Nay Min Thu added.In the past, U Nay Min Thu provided capital forseveral local startups including a $40,000 in-vestment in B2B trading platform Bagan Hub,BanganMart.com and Groupbuyy.com.mm as wellas undisclosed amounts in ride-hailing app HelloCabs and online shopping site 365Myanmar.com.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/tech-venture-capital-firm-receives-5-mln-investment


19 Sep 2017


NewspapersConsult Myanmar

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 theDepartment of Urban and Housing Development.Partners and Investors who want to co-operatefor the project are invited.Project details and partnership scheme can bediscussed during the office hour at the site office.

Source: Consult Myanmarhttps://consult-myanmar.com/2017/09/22/dept-of-urban-housing-development-partner-invitation-for-low-cost-housing-project-in-dagon-seikkan-township/

22 Sep 2017

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Dept of Urban & Housing Development: Partner Invitation for Housing Project in Dagon Seikkan Township.


3. Weekly New Tenders

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Tenders (Myanmar Government)List

Note: tenders information are collected from http://www.mmtimes.com/, https://tender.yangon.gove.mm, http://consult-myanmar.com/, and http://www.myanmar-opportunities.org/mm/tenders http://www.buildersguide.com.mm/en/ .

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No applicable Tenders announced for the week ending 22 September 2017

http://www.mmtimes.com/

https://tender.yangon.gove.mm/

http://consult-myanmar.com/

http://www.myanmar-opportunities.org/mm/tenders

http://www.buildersguide.com.mm/en/


Tenders (Multilateral organizations) List

Note: tenders information are collected from https://wbgeconsult2.worldbank.org, www.devex.com, www.adb.org, https://www.ungm.org

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Equipping Youth for Employment Project - Civil Works CoordinatorClosing Date: 28 Sep 2017 (Individual)

Equipping Youth for Employment Project - Procurement CoordinatorClosing 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)

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/


Tenders (Multilateral organizations) List

Note: tenders information are collected from https://wbgeconsult2.worldbank.org, www.devex.com, www.adb.org, https://www.ungm.org

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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 TrainingClosing 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)

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/


4. MIC Permitted Projects

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MIC Permitted Projects (Meeting 12, 2017)

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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 LtdManufacturing and sale of beer and other spent grains

Joint Venture

3 Delicious Food LtdProduction and sale of food and consumer products

Myanmar Citizen


5. Upcoming Events

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Upcoming Events (October 2017) List

Date Location Name of Event Sector Price Focus Points

12-14 Oct 2017 YangonBuilding & 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.

12-14 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.

12-14 Oct 2017 YangonElectric, 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.

18-19 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.

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Upcoming Events (November 2017) List

Date Location Name of Event Sector Price Focus Points

09-11 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.

23-25 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 YangonMyanmar 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.

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© 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.

www.pwc.com/mm

PwC Myanmar Business Intelligence Publication

For further information please contact:

Jovi SeetSenior Executive [email protected]

Brandon [email protected]

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pwc myanmar weekly business intelligence · pwc | september 2017 6 fpb considers ysx exit first...

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