pwc myanmar weekly business intelligence€¦ · wave money team ups with meb to offer mobile...
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PwC MyanmarWeekly Business Intelligence
Issue 15322 March 2019
www.pwc.com/mm
PwC | March 2019
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PwC | March 2019
1. Weekly Key Financial & Business News
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PwC | March 2019
Weekly Key Financial & Business NewsHeadlines
Updated National Export Strategy to add new sectors, address constraints
Wave Money team ups with MEB to offer mobile pension service
New Yangon City Project: China, CCCC and Myanmar’s profits
Ex-Blackwater boss moves into Myanmar security
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Electricity charges to rise as power reaches half of all households by November
PwC | March 2019
Weekly Key Financial & Business NewsHeadlines
Myanmar to introduce rating system for hotels
Crop insurance begins to take root in Myanmar
Myanmar Tourism Bank expands reach to support sector
Shining a Light on Shady Business in Myanmar's Extractive Industries
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Land Lost, Families Uprooted as Myanmar Pushes Industrial Zones
PwC | March 2019 6
Wave Money team ups with MEB to offer mobile pension service
Wave Money, a mobile financial service provider,is partnering up with Myanma Economic Bank(MEB) to provide mobile pension payments toretirees nationwide, according to its release.The firm, which is a JV between Telenor, FirstMyanmar Investment Co and Yoma StrategicHoldings, signed a Digital Pension DisbursementPartnership agreement with MEB last Thursdayto make pension payments much moreconvenient for government pensioners.Wave Money and MEB first launched a limitedmobile pension service for pensioners in Yangon’sNorth Dagon township last year. Following itssuccess in North Dagon, the service will be scaledup and expanded into other townships in Yangonwithin the coming months. The aim is to getcoverage of the whole nation as well as promotegreater financial inclusion.“Our goal is to deliver this service to allgovernment pensioners in Myanmar. WaveMoney has the largest financial services networkin Myanmar,” said Mr Brad Jones, CEO of WaveMoney. “We can make pension payments inMyanmar faster and more efficient while making
it a lot easier for the pensioners to access theirfunds.”Currently, pensioners are using E-pension cardsto withdraw their pensions, but the waitingprocess would take an average of three hours,which causes inconvenience for the elderly.MEB, under the agreement, will utilise WaveMoney’s mobile financial services platform todisburse the pensioners’ money. This promotesgreater operational efficiency for the bank and forpensioners, easy and secure withdrawals from themore than 41,000 Wave Shops around thecountry at any day of the week.The elderly are not known to be tech-savvy, butthey quickly adopted mobile finance service afterlearning the benefits, officials said.
Source: Myanmar Timeshttps://www.mmtimes.com/news/wave-money-team-ups-meb-offer-mobile-pension-service.html
NewspapersMyanmar Times
18 March 2019
PwC | March 2019 7
Updated National Export Strategy to add new sectors, address constraints
Stakeholders from the public and private sectorgathered last Friday to discuss the NationalExport Strategy (NES) 2020-2025, includingactions to take to boost Myanmar’s export sector.The first Stakeholders’ Symposium for updatingthe NES was aimed at boosting Myanmar’s exportperformance in the global economy and wasattended by Vice President U Myint Swe andcommerce minister U Than Myint.The event provided stakeholders with anopportunity to examine the current challenges inregard to Myanmar’s export performance as wellas the need for a strong export and policyframework to assist development, said U Zaw MinWin, President of the Union of MyanmarFederation of Chambers of Commerce.The NES 2020-2025, which will replace the NES2015-2019, will address competitivenessconstraints, modernise regulatory systems forimproved efficiency and boost Myanmarindustries with the aim of increasing exports.In addition, objectives will be designated toimprove opportunities for Myanmar’s micro,small and medium-sized enterprises (MSMEs)
and exporters in regional and global trade. Theupdated NES will guide the development of newexporters while supporting the growth oftraditional export industries.The NES could help Myanmar secure a pivotalrole in the region, said Gail Marzetti, head of UK’sDepartment for International Development(DFID) Myanmar. “With the rapid developmentof trade corridors across the region, increasingintegration into global value chains and thegrowing demands of Asian consumers, Myanmaris strategically located to grow. The NES is animportant instrument to leverage theseopportunities and deliver key goals of theMyanmar Sustainable Development Plan.”The symposium is the first of a series of NESconsultations initiated by the Ministry ofCommerce and supported by the Trade andInvestment Project (TIP), which is beingimplemented by the International Trade Centre.Source: Myanmar Timeshttps://www.mmtimes.com/news/updated-national-export-strategy-add-new-sectors-address-constraints.html
NewspapersMyanmar Times
18 March 2019
PwC | March 2019 8
New Yangon City Project: China, CCCC and Myanmar’s profits
If we were to take a look back at the New YangonCity Development Master Plan (hereinafterreferred to as the Yangon City Project), one willfind that it is directly linked to China’s mega-infrastructure project that is the One Belt OneRoad (OBOR). Since the “new city” will be built ata location able to easily access the sea, it is one ofthe most important routes for OBOR. Since theconception of the Yangon City Project, there hasbeen pointed remarks as to prevent possiblemoney laundering, to drown in debts owed toChina as well as not to generally be the sacrificialcandle that will give light to other nations exceptours. Despite criticisms, the project had wentahead with rights given to China Communicationsand Construction Company (CCCC) withMyanmar gaining extremely slim margins of only5 per cent and China 95. Only after a long whilewill Myanmar grow to a 25 per cent status butonly after having to invest around 20,000 acres ofland in the very first phase alone with initialprojections showing that Myanmar will earn intotal about 450 million dollars. The situation ofessentially giving up wholesale to China the
Yangon City Project is a rather disappointingsituation for the people of Myanmar.Arguments arising from the management anddistribution of land for the Yangon City Projectalso seem inevitable as CEO Theim Wei (akaSerge Pun) of the New Yangon DevelopmentCompany (NYDC) had, with agreement from thegovernment, had set the price of land marked forthe Yangon City Project at a rate of five dollars persquare meter, similar to the rate Japaneseenjoyed for the Thilawa SEZ Project. In an acrethere is 4046.861 square meter, bringing the costper acre of land to US$20,234. That amount theChinese had to pay amounts to, after calculationsusing February 15 reference rate of the CentralBank at 1532 Kyat per dollar, Kyat 310 Lakhs peracre of land.
Source: Eleven Myanmarhttps://elevenmyanmar.com/news/new-yangon-city-project-china-cccc-and-myanmars-profits
NewspapersEleven Myanmar
18 March 2019
PwC | March 2019 9
Ex-Blackwater boss moves into Myanmar security
Frontier Services Group (FSG), founded byformer US military contractor Erik Prince, says itis moving into Myanmar to provide securityservices to Chinese and other foreign investors.Blackwater, a now-defunct private militarycontractor founded by Mr Prince, was condemnedinternationally after its employees allegedlyopened fire on a Baghdad street in 2007, killing atleast 14 civilians. Mr Prince later sold Blackwater,which then changed its name. While FSG focuseson logistics and security instead of paramilitaryoperations, the HK-listed firm sparkedcontroversy earlier this year when it released andthen deleted a statement on plans to build atraining camp in west China’s Xinjiang region.“As a Hong Kong-listed company, FSG hasestablished a joint-venture security company inMyanmar and obtained a security licence toprovide international-standard security servicesto international investors in Myanmar, includingthose from China, Japan and Thailand,” a FSGspokesperson told The Myanmar Times. Hedeclined to comment on the specifics of theoperations in the country.
FSG (Myanmar) Security Services Co Ltd isregistered as a foreign services company,according to the Directorate of Investment andCompany Administration (DICA). Last month itadvertised for 30 security personnel in Myanmar.DICA’s company profile of the joint venture listsDaw Sandar Win (Myanmar), Shi Yi (China),Zhang Huagang (China), Tan Qing (China) and USi Thu (Myanmar) as directors. Daw Sandar Winis believed to be the sister of U Kyaw Win, whoowns Shwe Than Lwin Media, the parentcompany of SkyNet.FSG’s 2017 annual report also stated that theMyanmar venture is “overseen by Shi Yi, John”,while the 2018 interim report added that theMyanmar subsidiary provides logistics andsecurity services.
Source: Myanmar Timeshttps://www.mmtimes.com/news/ex-blackwater-boss-moves-myanmar-security.html
NewspapersMyanmar Times
18 March 2019
PwC | March 2019 10
Electricity charges to rise as power reaches half of all households by November
The Ministry of Electricity and Energy (MOEE)has arranged to expand electricity supply to cover50 percent of all households in the country byNovember, said U Soe Myint, deputy permanentsecretary of the MOEE.“We have already made all the arrangements tomeet this expectation,” U Soe Myint said duringthe ministry’s monthly press conference lastweek. Up until October 2018, more than 4.6million households have already receivedelectricity, representing 43pc of all households inthe country.By November, this will rise to comprise half of allhouseholds in Myanmar.Currently, production is only around 3,800megawatts and the electricity generation is risingby 300MW-500MW per year. Arrangements arebeing made to raise power production by up to3000MW per year, said Minister of Electricityand Energy U Win Khine.Under the current government, electricity hasbeen made available to around one millionhouseholds.Myanmar first drafted its National Electrification
Project in 2013-14 with US$1.5 million in financialsupport from the US. Under the project,electricity will be provided to all households by2030.The project is being implemented with US$400million from the World Bank. Up toUS$310million has been earmarked for thenational grid and being implemented by theMOEE while the remaining US$90 million will beallocated for off-grid developments by theDepartment of Rural Development under theMinistry of Agriculture, Livestock and Irrigation.Meanwhile, plans to further increase electricitycharges are being considered to offset the amountof public funds being spent by the state.Currently, the government collects K35 forhousehold use of one to 100 units of electricity,between K40 and K50 for streetlights and forcommercial use the charges are K75 from one to500 units and K150 for maximum consumption.Source: Myanmar Timeshttps://www.mmtimes.com/news/electricity-charges-rise-power-reaches-half-all-households-november.html
NewspapersMyanmar Times
19 March 2019
PwC | March 2019 11
Crop insurance begins to take root in Myanmar
Local insurer Global World Insurance Co (GWI) isexpanding its crop insurance pilot project withthe signing of an agreement with a privatecontract farming business, U Soe Win Thant , thedirector of Global World Insurance, revealed.In 2016, Global World Insurance submitted aproposal on offering crop insurance to theInsurance Business Regulatory Board IBRB underthe Ministry of Planning and Finance.Last January, the ministry approved a two-yearpilot project for GWI’s crop insurance. Thecompany’s crop insurance is yield-based and thepremium is two percent of the market price of ricefrom one acre (0.4 hectares) of farmland. Shouldcrops be damaged due to bad weather, the insurerwill calculate compensation payouts based on themarket price per acre of rice harvested in differentregions.The company’s pilot project is the first time cropinsurance has been offered in the country andcovers on rice growers for now. The insurance isbeing offered in Ayeyarwady, Mandalay, andYangon regions.“Since this is just the first year of the pilot project,
we are learning that there is a need for thingssuch as a national crop insurance committee, cropinsurance laws, and crop re-insurance,” U SoeWin Thant said.“Senior government officials are keen onimplementing crop insurance, but at the lowerlevels we are facing a lack of support fromgovernment departments. We have faceddifficulty getting exact data on yields and weatherpatterns from the relevant governmentdepartments. If this effort is to move forward, wewill support from the government. National cropinsurance coverage may have to be a government-led effort,” he said.On the other hand, farmers are interested in cropinsurance and market demand appears to offergood potential. Currently, GWI and the MyanmarRice Federation have agreed to provide cropinsurance to the contract farming operations runby private companies, he added.
Source: Myanmar Timeshttps://www.mmtimes.com/news/crop-insurance-begins-take-root-myanmar.html
NewspapersMyanmar Times
20 March 2019
PwC | March 2019 12
Myanmar to introduce rating system for hotels
Myanmar is planning to start a rating system forlocal hotels, according to the Ministry of Hotelsand Tourism.“The rating system will start in Yangon and beendorsed by the World Tourism Organisation.Rating hotels for their services is common inother countries,” said U Naing Win, a director atthe ministry.Having a rating system will encourage hotels inMyanmar to pay closer attention to the servicesthey provide and raise the standard and quality ofthe hotel industry. Associations and hoteliers arenow discussing a new rating program based on astar system, under which guests rate hotels by thenumber of stars.The criteria will include the features and servicesa hotel should have. “Starting a star rating systemis good. Guests can choose hotels according to thenumber of stars it has received from previouscustomers. There is an international standard forit and if Myanmar can implement this, it would bea big help for tourism," said U Than Htut,executive director of Eden Group Company.The star rating for hotels in Myanmar will be
based on regional requirements and will becompatible with the country's situation, said theMinistry of Hotels and Tourism.Around 380 hotels and motels have beenpermitted to operate in Yangon, according toministry data.
Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-introduce-rating-system-hotels.html
NewspapersMyanmar Times
20 March 2019
PwC | March 2019 13
Myanmar Tourism Bank expands reach to support sector
Myanma Tourism Bank will open three branchesin Yangon, Mandalay and Nay Pyi Taw within thenext two months, U Zin Ko Ko, deputy head of thesmall and medium-sized enterprise (SME)department at Myanmar Tourism Bank told TheMyanmar Times.Myanmar Tourism Bank is one of five sector-specific banks granted a banking license by theCentral Bank of Myanmar (CBM) last year. It isfounded by a public tourism company.The branches at Mandalay and Nay Pyi Taw arealready, while preparations are still underway toopen the Yangon branch, U Zin Ko Ko said.“As a tourism bank, we will focus on lending tothe tourism sector. But we also plan to offerfinancial support to other related sectors andbusinesses,” he said.Borrowers will have to present documents asproof of collateral as well as other necessaryfinancial statements. “If borrowers submit all therelevant documents to us when applying for atourism loan it would the best for both parties,” UZin Ko Ko said.The CBM has since also relaxed its restrictions on
collateral. As such, loans at rates of 16 percent areavailable for borrowers without collateral. Forborrowers who are able to provide collateral, thelending is a maximum of 13pc. The MyanmarTourism Bank will decide on the loans to extenddepending on the nature of the business of theborrowers, he said.To support the development of the tourismsector, personal travel loans will also be issued tothose who want to travel, apart from giving outloans to tourism companies.In December 2017, the President’s Officeinstructed the CBM to approve the opening of fivesector-specific banks, with the aim of supportingdevelopment in those industries. These were theMyanmar Tourism Bank, Mineral DevelopmentBank, Glory Farmer Development Bank,Mandalay Farmer Development Bank and ShweNann Saw Bank, The Myanmar Timesunderstands.
Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-tourism-bank-expands-reach-support-sector.html
NewspapersMyanmar Times
20 March 2019
PwC | March 2019 14
Shining a Light on Shady Business in Myanmar's Extractive Industries
The global debate on the discloser of beneficialownership, especially in the extractive industries,is scaling up. More access to information aboutwho really benefits from the revenues is raisingaccountability and helping in the fight againstcorruption.Myanmar, an Extractive Industries TransparencyInitiative (EITI) candidate country, formed aBeneficial Ownership Taskforce in June to movethe country toward membership. Countries thatjoin the EITI must disclose the beneficialownership of the companies in their extractiveindustries by Jan. 1, 2020. With the deadline onlynine months away, the EITI InternationalSecretariat and industry experts stressed the needfor more government collaboration betweensectors and agencies during a workshop onbeneficial ownership for the Asia and Pacificregion in Manila this week. A delegation fromMyanmar attended the event to learn and sharetheir views.The Irrawaddy spoke with Eddie Rich, deputyhead of the EITI International Secretariat, aboutthe initiative’s goals and Myanmar’s progress
toward reaching them.What is beneficial ownership and why is itimportant for EITI countries to disclose beneficialownership?Beneficial ownership is the process about whichyou understand the natural owner, the flesh andblood owner, of companies. And this is to dealwith what has been exposed in the PanamaPapers, the Paradise Papers and lots of recentscandals as a mechanism, that creating shellcompanies which own other companies but…arehiding the real owner. That has been amechanism for money laundering, it has been amechanism for terrorist financing, it’s been amechanism tax evasion and avoidance. It’s been amechanism also for nepotism. So the revelation ofthe Panama Papers and then the Paradise Papersshowed the extent of this problem,
Source: The Irrawaddyhttps://www.irrawaddy.com/in-person/interview/shining-a-light-on-shady-business-in-myanmars-extractive-industries.html
NewspapersThe Irrawaddy
21 March 2019
PwC | March 2019 15
Land Lost, Families Uprooted as Myanmar Pushes Industrial Zones
MYAING THAR YAR, Yangon Region—Than Eilived in the Thilawa area near Yangon for years,growing vegetables in her backyard and sendingher two children to school with money from herhusband’s construction job.Then came the government order to move. ThanEi’s family was among 68 households relocated in2013 to make way for the Thilawa SpecialEconomic Zone (SEZ), the first such industrialarea in Myanmar, about 23 kilometers (15 miles)southeast of Yangon.Authorities said each family would get a home afew miles away, or a plot of land and money tobuild a house, as well as jobs in the new factories,with good wages.But six years on, Than Ei and others who movedsay their incomes are lower than before, and theyhave only limited access to services. Manyfamilies sold their homes and left the area afterthey ran out of money, Than Ei said.“There is no land to grow vegetables or to keepchickens, and we are not close to transport or themarket anymore,” Than Ei said outside her one-room home in Myaing Thar Yar Village.
“My husband only got a job as a security guardtwo years after (the move). We had to take out aloan until then, which we are still paying off.”For developing nations like Myanmar — whichemerged from decades of economic isolation in2011 when the military stepped back from directcontrol — SEZs are seen as a way to attract much-needed foreign investment and create jobs.Authorities say Thilawa SEZ is being builtaccording to international environmental andsocial safeguards, which includes getting theconsent of residents and offering adequatecompensation.But for those whose lives have been uprooted bythe country’s economic ambitions, the reality isdifferent, said Mike Griffiths, a researcher at theMyanmar Social Policy and Poverty ResearchGroup, a think tank based in Yangon.
Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/land-lost-families-uprooted-myanmar-pushes-industrial-zones.html
NewspapersThe Irrawaddy
21 March 2019
PwC | March 2019
2. Weekly Key Policy News
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PwC | March 2019
Weekly Key Policy NewsHeadlines
President Nominates Replacement For Disgraced Tanintharyi Chief Minister
MCEA asks gov’t to enact Apartment Law
Government Cancels License Requirements for Imported Spare Auto Parts
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Industry proposes reducing visa restrictions for western tourists
UN official welcomes Rohingya relocation plan
PwC | March 2019 18
President Nominates Replacement For Disgraced Tanintharyi Chief Minister
YANGON — President U Win Myint nominatedTanintharyi Region’s minister of naturalresources and environmental conservation toreplace Chief Minister Daw Lei Lei Maw, who wasfired immediately after her arrest on corruptioncharges earlier this month.Tanintharyi Region Parliament Speaker U KhinMaung Aye told The Irrawaddy that thelegislature received the nomination on Mondayand that he has called lawmakers to an emergencysession on Friday to discuss it.The regional minister for natural resources andenvironmental conservation, U Myint Maung, hasbeen serving as acting chief minister since DawLei Lei Maw’s arrest on March 10.The ousted chief minister was arrested after amonth-long investigation by the Anti-CorruptionCommission (ACC) along with Global GrandServices Managing Director U Thein Htwe,Director U Aung Myat and General Manager UThura Ohn. The ACC opened cases against all fourunder the Anti-Corruption Law.The ACC said Daw Lei Lei Maw misused herposition on a number of occasions since April
2016, just weeks after she was appointed. A dayafter her arrest, the President’s Office announcedthat she had been fired.U Khin Maung Aye said he believed U MyintMaung was the right person for the job becausehe had experience serving in the regional cabinetand had overseen the local mining industry wellover the past three years.U Myint Maung was elected to the locallegislature to represent Kawthaung Township inthe 2015 general election representing theNational League for Democracy, which came topower in same poll. He is also the NLD secretaryfor Tanintharyi Region.“There is not much time to address all theproblems that the region is facing, but I hope hecan solve a few of them in the remaining term,” UKhin Maung Aye said.
Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/president-nominates-replacement-disgraced-tanintharyi-chief-minister.html
NewspapersThe Irrawaddy
19 March 2019
PwC | March 2019 19
MCEA asks gov’t to enact Apartment Law
The Myanmar Construction EntrepreneursAssociation (MCEA) said it has asked thegovernment to enact the Apartment Law.Although there are about 300,000 apartments inthe Yangon Region, there is no guarantee when itcomes to purchase of apartments because there isno binding law, according to the association.If the Apartment Law is enacted to develop thehousing sector, apartment owners will be able toget their titles registered, enter into legal deeds ofsale, and the government will earn a good revenuefrom sales tax. Additionally, apartment ownerswill be able to sell, transfer, and mortgage theirapartments legally.“The enactment of the Apartment Law will turnaround 300,000 apartments into strong assets. Inthe absence of the Apartment Law, most salescontracts are being drawn up in an informal way.This being so, if owners try to mortgage theirapartments with banks, they are not grantedloans. Apartment owners cannot exercise theirconsumer rights. There are also unwantedproblems such as cases of constructioncontractors absconding, brokers cheating, and
apartments owners being at risk of losing theirapartments. As for the government, it cannotimpose taxes. If the Apartment Law is enacted,registration will be required when purchasingapartments,” said U Myo Myint, the GeneralSecretary of the MCEA.Yangon Region has higher apartment occupationcompared to other states and regions. Therefore,the MCEA is planning to draw the Apartment Lawfor Yangon Region along with the regionalgovernment.The Myanmar Licensed Contractors Associationhas submitted a bill to the Pyithu Hluttaw afterdrawing up the National Apartment Law. The lawis to be implemented by the Urban and HousingDevelopment Department, under the Ministry ofConstruction.Currently, the National Apartment Law is beingdiscussed at the Pyidaungsu Hluttaw constructioncommittee meeting.
Source: Global New Light of Myanmarhttp://www.globalnewlightofmyanmar.com/mcea-asks-govt-to-enact-apartment-law/
NewspapersGlobal New Light of Myanmar
19 March 2019
PwC | March 2019 20
Government Cancels License Requirements for Imported Spare Auto Parts
Ministry of Commerce has cancelled importlicense requirements for importing spare carparts. The cancelation only applies to spare partsused for brand new cars, not for used car importsthe Customs Department announced on March18.Thanks to the liberalization of the importationprocess, it will be faster to import parts and theimporters will save time and money because theywon’t need to apply for an import license,according to the statement of the department.However, the importers will have to comply with9 regulations for imported spare parts, such asthat the imports must be brand new, and comewith the HS Code described in the importdeclaration as well as other factors such asquantity, brand, sub-brand, part number, weight,etc. All which should be stated in the importdeclaration.Furthermore, the statement highlighted that theimporters, when submitting the importdeclaration, will no longer need to mark thecategory: ‘Imports of goods to be cleared underSCA Section 29’, which is one of the categories in
the import declaration.Myanmar's automotive aftermarket and aftersalesservices industry is undergoing an impressivegrowth phase following the ease of car importregulations after decades of restrictions, thereforedemands for spare parts and aftersales servicesare on the rise, according to the automotiveexperts. Stakeholders in the industry welcome themove.
Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/government-cancels-license-requirements-imported-spare-auto-parts
NewspapersMyanmar Business Today
19 March 2019
PwC | March 2019 21
Industry proposes reducing visa restrictions for western tourists
Discussions will be made with the relevantdepartments to reduce visa restrictions onwestern travelers, said U Yan Win, chair ofMyanmar Tourism Federation.The move comes after the government last yearapproved visa exemptions for tourists fromJapan, China and South Korea in a bid draw moreAsian travelers to Myanmar.“Granting visa exemptions for western countrieswill be very supportive for the tourism industry.There should be less travel restrictions for visitorsfrom the west who are more inclined to visitMyanmar,” said U Yan Win.Earlier this month, tourism groups proposedgranting visas on arrival for tourists fromGermany, France, Italy, Spain and Poland buthave not received a reply from the governmentyet, according to Myanmar TourismEntrepreneurs Association.Currently, visa on arrival arrangements areavailable for more than 50 countries at theinternational airports of Yangon, Mandalay andNay Pyi Taw. The tourists are allowed to stay inMyanmar for 28 days.
Tourists from China, Japan and South Korea haveincreased significantly since the governmentrelaxed its visa restrictions for those countries inOctober last year, said U Naung Naung Han,Secretary of the Union of Myanmar TravelAssociation.“There has been a significant increase in thenumber of visitors from China and Korea after therelaxation of visa rules. So we can safely assumethat even more people will come to Myanmar ifthe visa rules are relaxed for more countries. Butin the case of the visas for westerners, it alsodepends on the country’s policies or if anysanctions are in place,” said U Naung Naung Han.Visitors to Myanmar from Germany, France, Italy,Russia, Spain, and Poland normally stay 14 dayson average, and they are also the visitors whospend the largest amount of money on their visits.
Source: Myanmar Timeshttps://www.mmtimes.com/news/industry-proposes-reducing-visa-restrictions-western-tourists.html-0
NewspapersMyanmar Times
20 March 2019
PwC | March 2019 22
UN official welcomes Rohingya relocation plan
DHAKA — A senior UN official has welcomedBangladesh's plan to move Rohingya refugees outof the country's congested camps, but said anymove to transfer some 100,000 of them to aflood-prone island should be voluntary.Mr Volker Turk, an assistant high commissionerat the UN's refugee agency, said Thursday that thesoutheast Kutupalong camp, the world's largestand now home to some 600,000 Rohingyarefugees who have fled neighbouring Myanmar, ishighly overcrowded."If you have been in Kutupalong or various campsin Cox's Bazar area, it is clear that there is hugecongestion," the UNHCR official told reporters inDhaka after concluding a five-day visit to thecountry."So we welcome the fact that the government ofBangladesh has taken very active steps to identifyalternative settlement [for the Rohingyarefugees]."He added that the UN was still in "discussion"with the Bangladeshi authorities about therelocation of refugees to the island of BhashanChar, in the Bay of Bengal, but said refugees must
be willing to move and be able to continue their"livelihood" there.International aid agencies and a UN rapporteurhave raised concerns about the island's ability towithstand violent storms during the monsoon.Hundreds of thousands have died in Bangladeshfrom cyclones in the last 50 years, mostly incoastal areas.A senior Bangladeshi minister last week saidmoving refugees to the remote island, which is anhour away by boat from the mainland, will startfrom next month as the majority of theconstruction work has finished.Dhaka has spent some US$280 milliontransforming the muddy silt islet that onlyemerged nearly two decades ago.Local officials have pointed to a newly-constructed three-metre (nine-feet) embankmentaround the island that they say will keep out tidalsurges in the event of a cyclone.
Source: Frontier Myanmarhttps://frontiermyanmar.net/en/un-official-welcomes-rohingya-relocation-plan
NewspapersFrontier Myanmar
22 March 2019
PwC | March 2019
3. Weekly Investment News
23
PwC | March 2019
Weekly Key Investment NewsHeadlines
Private Investments Worth $54M for Chin State
Myanmar marketplace rgo47 parent snags funding from Daiwa PI Partners
New Yangon City Phase 1 Infrastructure Projects: Status of EOI Submission
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Myanmar-focused startup SolarHome raises $1m from SG-based Trirec
Hong Kong sets up chamber amid investment push
PwC | March 2019 25
Private Investments Worth $54M for Chin State
YANGON—The Chin State government signedfour memorandums of understanding (MoUs)with private companies for projects totaling morethan $54 million at an investment fair held at theweekend in Yangon, which aimed to stir upforeign investment interest in one of the pooreststates of Myanmar.Among the four companies, the biggest projectsigned for was with Norway Power Co. Ltd. for apower project worth $50 million which will be thefirst foreign investment in the Chin State.According the director of the State’s Directorateof Investment and Company Administration(DICA) U Min Zaw Oo, the government alsosigned MoUs with local companies for anagricultural goods production project worth $1million with Chin Taung Yadanar Co., an urbanhousing project worth 3 billion kyats (nearly $2million) with the Khumi Institute and a hotelproject worth 2.4 billion kyats (nearly $1.6million) with KL Amazing Co. Ltd.“These projects are listed among the priorityprojects [and will] enjoy income tax exemptionsfor seven years,” U Min Zaw Oo told The
Irrawaddy.The two-day fair was backed by the Ministry ofInvestment and Foreign Economic Relations whopartnered with UK Aid and private businesses aspart of the government’s efforts to counteract asignificant decline in foreign direct investment inMyanmar.Situated in western Myanmar along the borderwith Bangladesh and India, Chin State has amountainous terrain that has hinderedinfrastructure development. Major parts of thestate lack basic infrastructure and electricity. ChinState’s Chief Minister Salai Lian Luai said thegovernment priority sectors are hotels andtourism, agriculture, mining, infrastructure andhydropower and energy.Vice President U Myint Swe and Union Ministerfor Investment and Foreign Economic Relations UThaung Tun attended the fair’s opening ceremonyon Saturday.
Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/private-investments-worth-54m-chin-state.html
NewspapersThe Irrawaddy
18 March 2019
PwC | March 2019 26
Myanmar marketplace rgo47 parent snags funding from Daiwa PI Partners
Daiwa PI Partners has announced an undisclosedinvestment in Yangon-headquartered RoyalGolden Owls Co Ltd (RGO), which operatesonline e-commerce marketplace rgo47. Theinvestment, which closed on March 14, is the fifthprivate equity deal in Myanmar for Daiwa PIPartners. The investment size in RGO is likely tofall in the range of $2 to $7 million. The PE firmtypically invests around $5 million-$10 million inits target firms. rgo47, which is into lifestyle andfashion products, claims a network coverageacross 230 cities in Myanmar. Established inDecember 2013, RGO is led by its CEO WinNander Thyke. “The funds raised through thisfinancing round will be utilised for furtherexpansion of the e-commerce marketplacebusiness,” according to the announcement. Inaddition to financial support, DPI will hold aboard seat in RGO. Looking forward, RGO said, itwill continue to expand its product base further toimprove customer choice. In its first deal inMyanmar, Daiwa PI Partners invested $6.26million for a 10 per cent stake in ICT serviceprovider Frontiir Co Ltd. Daiwa PI Partners
followed it up with a $5-million contribution aspart of the $14.7 million investment round inOway, a leading travel company from Myanmar.Other investors in the round included IFC, BeltRoad Investment Group, NSI Ventures andCambodia-Laos-Myanmar Development Fund IILP. In November last year, the PE firm bought astake in Rent 2 Own (Myanmar) Ltd, a motorcyclerental service by buying out an existingshareholder in the company. In an interactionwith DEALSTREETASIA, Kazuyoshi Mizukoshi,managing director of the InternationalInvestment Department of Daiwa PI Partners CoLtd said the organisation is actively sourcing thenext investment opportunities in the area ofcommunications, finance and online business andconsumer space. “Rather than looking atSingapore or Hong Kong that are alreadydeveloped, we are much more focused onemerging countries like Myanmar and Vietnam.Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/myanmar-marketplace-rgo47-parent-snags-funding-from-daiwa-pi-partners-126308/
NewspapersDeal Street Asia
19 March 2019
PwC | March 2019 27
New Yangon City Phase 1 Infrastructure Projects: Status of EOI Submission
On 11 February 2019, the NYCD invited interestedcompanies to submit an EOI to begin the first stepof the NYDC Challenge for infrastructure projects.These projects are part of the development ofNew Yangon City Phase 1. The closing date forEOI submission was on 28 February 2019, andthere was a high level of interest for the sixprojects.In total, NYDC received 77 EOIs submissions, andthe breakdown of the number of EOIs for eachproject is below:1) Power Supply and Distribution (20 EOIs)2) Public Transport System (7 EOIs)3) Cyber Connectivity Infrastructure (13 EOIs)4) Municipal Waste Disposal (15 EOIs)5) Natural Gas Supply and Distribution (14 EOIs)6) Convention Center (8 EOIs)A total of 45 companies and/or consortiums fromMyanmar, Singapore, Thailand, Vietnam,Malaysia, Sri Lanka, India, Hong Kong, China,Japan, South Korea, Italy and Finland, havesubmitted EOIs, with some applying for morethan one project.Out of the 45 applicants, four companies have
indicated interest in undertaking the project as anengineering, procurement and construction (EPC)contractor. The Public Private Partnership modeladopted by NYDC for the development of basicinfrastructure in New Yangon City Phase 1 isthrough partnerships with companies who arecapable of undertaking the infrastructure projectson the basis of Design, Invest, Build and Operate.Therefore, companies who are interested inundertaking the project as an EPC contractor willhave the opportunity to participate in the futurethrough engagement by the main undertakers ofthe projects.NYDC will be reaching out to all EOI applicants toprovide further clarification on the projects andthe cooperation model. Only short-listedapplicants will be invited for in-depth discussionson the details of the projects.
Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/new-yangon-city-phase-1-infrastructure-projects-status-eoi-submission
NewspapersMyanmar Business Today
19 March 2019
PwC | March 2019 28
Myanmar-focused startup SolarHome raises $1m from SG-based Trirec
SolarHome, a Singapore-headquartered solarenergy startup that serves off-grid households inMyanmar, has secured a $1-million equityinvestment from existing investor Trirec, aSingapore-based investment holding companythat targets renewable energy and cleantechnology investments. The follow-on financingby Trirec forms the first tranche of SolarHome’sSeries A fundraise that it intends to close withinthe next quarter. In early 2018, SolarHome raised$4.2 million via convertible notes from Trirec,Insitor Impact Asia, Beenext and a group ofSingapore-based family offices. In December lastyear, SolarHome raised an additional $10 milliondebt financing from a consortium of investorsincluding Japan-based cross border crowdfundingplatform Trine. The company was seeded byfintech venture builder FORUM. Launched in2017, SolarHome has been expanding itsoperations in Myanmar and so far, the companyclaims it has installed over 30,000 solar homesystems in the country. The company aims toreach up to 100,000 home installations by theend of 2019. The company has also been installing
pay-as-you-go (PAYG) soalr for off-grid homes inSoutheast Asia. SolarHome also announced theappointment of Greg Krasnov, the chairman andfounder of SolarHome, and CEO of FORUM asthe company’s CEO. Previously, Ted Martynov ledthe company as the CEO. Martynov will continueto support SolarHome as a senior adviser. At thesame time, Geert-Jan ten Hoonte, a senioradviser, board member and angel investor inSolarHome has been appointed as president andCOO of the company. Hoonte was most recentlythe CEO of major Asian consumer lenders, HomeCredit Vietnam and EasyCredit Vietnam. “They(Krasnov and Hoonte) have been deeply involvedin the business from the start, bringing a depth ofstrategic vision and understanding of SolarHomeand the complexities of delivering energy andfinancial access in a country with significantinfrastructural challenges,” said Martynov.
Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/myanmar-focused-statup-solarhome-raises-1m-follow-on-debt-capital-from-trirec-126443/
NewspapersDeal Street Asia
20 March 2019
PwC | March 2019 29
Hong Kong sets up chamber amid investment push
Hong Kong has set up its first ever locally-registered official business group in Myanmar asthe National League for Democracy-ledadministration seeks to bolster the economy andattract more investment.The Myanmar Hong Kong Chamber of Commerceand Industry (MHKCCI) was registered andapproved by the Directorate of Investment andCompanies Administration (DICA) in February.The chamber has received recognition by theMyanmar Government and the Hong Kong TradeDevelopment Council, according to theorganisation’s press release.The role of the MHKCCI will be to promote trade,economic relations and responsible investmentbetween the territories. It will support existingcompanies as well as new market entrants inMyanmar.A board has been appointed. Edgar Kwan fromMarga Group is the chair while Adrian Short fromJardine Matheson’s Cycle & Carriage Myanmar(CCM) and Cyrus Pun from Yoma Group’sMemories Group are the vice chairs. British andHong Kong-qualified lawyer of Myanmar descent
Robert Pe serves as the chamber’s adviser.“As the Myanmar Government is making a majorinvestment push, the business community inHong Kong recognises Myanmar’s investmentopportunities, its competitive labour costs,strategic location and potential in human capital,”Mr Kwan, MHKCCI chair and Marga’s chiefdevelopment officer, said.“We appreciate the economic reforms Myanmarhas undertaken in the last few years, and echo thecall for more foreign investments and tourism."Official statistics show that approved investmentfrom Hong Kong totalled $7.9 billion as ofDecember last year since 1988, making it thefourth largest foreign investor in Myanmar, afterChina, Thailand, and Singapore.
Source: Myanmar Timeshttps://www.mmtimes.com/news/hong-kong-sets-chamber-amid-investment-push.html
NewspapersMyanmar Times
21 March 2019
PwC | March 2019
3. Weekly New Tenders
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PwC | March 2019
Tenders (Myanmar)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 March 2019.
PwC | March 2019
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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ADB: TA-9416 REG: Sustaining the Gains of Regional Cooperation in the Greater Mekong Subregion- 5 Section-Specific Planning for North-South Economic Corridor: Tourism (PRC) (51178-001), Closing Date: 24 Mar 2019 (Individual)
ADB: TA-9416 REG: Sustaining the Gains of Regional Cooperation in the Greater Mekong Subregion- 2 Section-Specific Planning for North-South Economic Corridor: Electric Power Dev't (Myanmar) (51178-001), Closing Date: 25 Mar 2019 (Individual)
ADB: TA-9416 REG: Sustaining the Gains of Regional Cooperation in the Greater Mekong Subregion- 1 Section-Specific Planning for the North-South Economic Corridor: Agriculture (Myanmar) (51178-001), Closing Date: 25 Mar 2019 (Individual)
ADB: TA-9416 REG: Sustaining the Gains of Regional Cooperation in the Greater Mekong Subregion- 3 Section-Specific Planning for North-South Economic Corridor: Transport Economist (PRC) (51178-001), Closing Date: 26 Mar 2019 (Individual)
PwC | March 2019
Tenders (Multilateral organizations) List (cont’d)
Note: tenders information are collected from https://wbgeconsult2.worldbank.org, www.devex.com, www.adb.org, https://www.ungm.org
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ADB: TA-9416 REG: Sustaining the Gains of Regional Cooperation in the Greater Mekong Subregion(51178-001), Closing Date: 27 Mar 2019 (Individual)
ADB: TA-9416 REG: Sustaining the Gains of Regional Cooperation in the Greater Mekong Subregion- 2 Section-Specific Planning for North-South Economic Corridor: Electric Power Dev't (PRC) (51178-001), Closing Date: 27 Mar 2019 (Individual)
ADB: TA-9074 MYA: Capacity Development for Project Implementation - Agriculture and Natural Resources Sector Coordinator (49297-001), Closing Date: 28 Mar 2019 (Individual)
ADB: TA-8788 MYA: Transport Sector Reform and Modernization - International Environmental Specialist (47087-001), Closing Date: 29 Mar 2019 (Individual)
PwC | March 2019
Tenders (Multilateral organizations) List (cont’d)
Note: tenders information are collected from https://wbgeconsult2.worldbank.org, www.devex.com, www.adb.org, https://www.ungm.org
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ADB: TA-9324 MYA: Support for Strengthening Business Climate - Insolvency and Corporate Registry Expert (50173-001), Closing Date: 29 Mar 2019 (Individual)
PwC | March 2019
4. MIC Permitted Projects
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PwC | March 2019
MIC Permitted Projects (Meeting 4, 2019)
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No. Name of Company Type of Investment Form of Investment
1 Mutsumi & Mingalar Co., LtdManufacturing and marketing of plastic mould and plastic accessories (spare parts)
Joint Venture
2 Lim Brother Co., LtdProduction and marketing of plastic product (plastic mat, plastic nets, plastic film, woven ready made sheet etc.)
Wholly Myanmar Owned
3 Myanmar Commercial Development Co., Ltd Hotel services Joint Venture
4 ACK and CO Services Co., Ltd Education services Wholly Myanmar Owned
5 Star Resources Co., LtdEducation services for hospitality and business management
Wholly Myanmar Owned
6 Southern Myanmar Development Co., LtdFloating storage unit for storage of LPG as transit point
Joint Venture
Source: DICA
PwC | March 2019
5. Upcoming Events
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PwC | March 2019
Upcoming Events (April 2019) List
Date Location Name of Event Sector Price Focus Points
03-04 April2019
Yangon LPG Myanmar Summit Power & EnergyUSD300
“LPG Myanmar Summit will advocate theappointment of sole women as LPGdistributors to act as a catalyst in helpingexceed the Governments’ objectives withrespect to energy, health, and theenvironment. Ultimately the empowermentof women in Myanmar will be a criticalsuccess factor”
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Note: Events information are collected from https://www.go-myanmar.com/events-and-conferences and https://10times.com/myanmar .
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www.pwc.com/mm
PwC Myanmar Weekly Business Intelligence Publication
For further information please contact:
Jovi SeetSenior Executive [email protected]
Brandon [email protected]
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