PwC MyanmarWeekly Business Intelligence

Issue 9005 January 2018

www.pwc.com/mm

PwC | January 2018

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PwC | January 2018

1. Weekly Key Financial & Business News

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PwC | January 2018

Weekly Key Financial & Business NewsHeadlines

Parami Energy readies imported LPG for sale as demand rises

Fate of Thai-Kayin Coal Plant Project Hinges on Assessment

Three companies shortlisted for Yangon Payment Services tender

Myanmar Companies Act an important key to transforming the economy

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Yangon Central Railway Comprehensive Development Project to continue

PwC | January 2018

Weekly Key Financial & Business NewsHeadlines

Dry port projects to be complete in 2019

Rural development dept aims to light up 1,300 villages this year

Mandalay Region increases water charges and scales up access

UMFCCI members push for lower tax rates

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Myanmar ups minimum wage as economy staggers

PwC | January 2018 6

Fate of Thai-Kayin Coal Plant Project Hinges on Assessment

The parliamentary approval for a Thai coal powerplant in Kayin State would depend on the resultsof the environment impact assessment (EIA),which is being conducted by an independentagency, a spokesman of the state parliament said.U Saw Chit Khin said the state parliament wouldwait for the EIA results before it decides whetherto allow the construction of the project in Hpa-antownship.“Everything depends on the results of EIA test. Ifit passes the test it can proceed with theconstruction, if it fails the test it will be shutdown, and that is what the residents want,” hesaid.Residents in the vicinity of the plant have beenprotesting against the operations of the plantamid environmental concerns.The joint venture between the Thailand-basedTTCL Public Co. Ltd and the Kayin Stategovernment is awaiting parliamentary approval.Under the agreement, the company would have a95 percent stake in the project while the stategovernment would have a 5pc stake.Construction of the 1280-megawatt power plant is

expected to be fully completed in 2024, and it isprojected to start partial operations in 2023.The plant would cost US$2.8 billion (K3.81trillion), including construction costs of up to $2billion. TTCL will also have to pay for the 40-yearlease of the land where the plant would beconstructed.Some residents, however, have doubts about howthe EIA study was conducted.Ko Saw Thar Boe, a committee member of theMyanmar Alliance for Transparency andAccountability (MATA), said the people were notinformed about the EIA test.TTCL said it would build a high-efficiency low-emission station with advanced “clean coal”technology to mitigate environmental impact,according to a Reuters report.Coal is currently used to generate just 1pc ofMyanmar’s electricity supply.

Source: Consult Myanmarhttps://consult-myanmar.com/2018/01/02/fate-of-thai-kayin-coal-plant-project-hinges-on-assessment/

NewspapersConsult Myanmar

02 Jan 2018

PwC | January 2018 7

Parami Energy readies imported LPG for sale as demand rises

The government is aiming to replace the use ofelectricity with Liquefied Petroleum Gas (LPG) asa fuel for household cooking. If widely used, LPGcan reduce the use of firewood as well aselectricity when cooking, which will help toconserve power as well as the environment.Last year, the Ministry of Electricity and Energy(MOEE) launched a K6.5 billion tender involvingthe lease of a jetty, terminal and storage facility atthe Thanlyin refinery in Yangon Region, for thepurpose of importing, storing and distributingLPG in Myanmar.A total of 21 companies sought tenderapplications but only nine submitted proposals.Of these, privately-owned Parami Energy ServicesCompany ultimately beat oil company PumaEnergy to win the tender in August last year.It is the first time the government has leased outstate-owned facilities under a Public-PrivatePartnership for the import, storage anddistribution of LPG in Myanmar. In the past, theimport and distribution of LPG was conductedsolely by state-owned Myanmar PetrochemicalEnterprise.

During an interview with The Myanmar Timesover the weekend, U Pyi Wan Tun, CEO of ParamiEnergy, shared his company’s plans and theprospects for LPG in Myanmar. Here is an excerptof the interview, which has been edited for clarity:Can you give us an overview of the currentMyanmar LPG market?Currently, LPG is mainly imported from Thailandthrough the Myawaddy border. Some quantitiesare imported from China. Officially, Myanmarimports 4,000 tonnes of LPG per month, but thereal number could be as high as 7,000 tonnes permonth.However, this is not enough to meet demand fromthe industrial, commercial and household sectors.Nationwide, LPG consumption is around 100,000tonnes annually and this is expected to grow asthere are now more hotels, restaurants and otherbusinesses that require LPG.

Source: Myanmar Timeshttps://www.mmtimes.com/news/parami-energy-readies-imported-lpg-sale-demand-rises.html

NewspapersMyanmar Times

02 Jan 2018

PwC | January 2018 8

Three companies shortlisted for Yangon Payment Services tender

The Yangon Regional Government has shortlistedthree companies to implement the YangonPayment Services (YPS) cashless payment systemon all Yangon buses in 2018.After conducting checks and meeting with a totalof 14 companies which tendered for the project,the Tender Supervisory Committee has selectedAnyPay Payment Services Co.,Ltd, Asia StamarTransport Intelligent Co.,Ltd and Excel KCMyanmar Co.,Ltd as the top three potentialcandidates for the job.The Yangon Regional Government reviewed thenecessary documents and discussed plans atlength with each company Tuesday. Thecompanies must reply to the government’squeries before 4 pm on Friday.On January 8, the Yangon Regional Governmentwill meet one final time with the three companiesand announce the winner on the same day.After switching to the Yangon Bus Service (YBS)from the old Ma Hta Tha transportation systemlast January, Yangon Chief Minister U Phyo MinThein is now focused on implementing YPS,which involves the use of prepaid cards to pay for

the fares on all buses.Under the new YBS system, old buses werereplaced with new air conditioned buses and buslines were consolidated to just over 100 lines frommore than 300 before.Some MPs also voiced concern during regionalparliament sessions over how the governmentwould manage the companies involved in buildingthe cashless, prepaid card system.

Source: Myanmar Timeshttps://www.mmtimes.com/news/three-companies-shortlisted-yangon-payment-services-tender.html

NewspapersMyanmar Times

03 Jan 2018

PwC | January 2018 9

Myanmar Companies Act an important key to transforming the economy

Businessmen and economists have been eagerlyawaiting a crucial piece of legislation that couldhave a transformative effect on the Myanmareconomy.Myanmar Companies Law is a major step totransform the Myanmar economy and it willbeneficially affect the influx of foreign investmentin domestic businesses, Aung Naing Oo, directorgeneral at Directorate of Investment andCompany Administration (DICA) under theministry of planning and finance, stressed at anofficial briefing on the Myanmar Companies Law,which was held on December 13 at the MeliaYangon Hotel.He said the new law will encourage informalbusinesses as well as unregistered enterprises toregister and so the businesses can easily set upand grow. Moreover, the law will also helpimprove the partnerships with overseasbusinesses that will provide many opportunities.He said that it has taken over three years for thisreform, including the passage of the law and theinput from the private sector, government,ministries and the members of parliament.

The new Myanmar Companies Act will come intoforce on August 1, 2018.The new law has been signed and approved byMyanmar President Htin Kyaw on December 6,2017, replacing the country’s century-oldCompanies Act, which had been in place since1914.The Act was drafted by the directorate ofinvestment and company administration ofMyanmar (DICA) and Asia Development Bank(ADB) also provided technical assistance.“The Myanmar Companies Act is an importantfoundation for the creating of the businessenvironment in Myanmar. The new act adopts theinternational best practices on the companyformation, business registration processes andcorporate governance in Myanmar,” Kelly Bird,ADB’s director of public management, financialsector and trade division (Southeast Asia) said atthe December 13 opening ceremony.Source: Mizzima Newshttp://www.mizzima.com/business-features/myanmar-companies-act-important-key-transforming-economy

NewspapersMizzima News

03 Jan 2018

PwC | January 2018 10

Yangon Central Railway Comprehensive Development Project to continue

The Union government will select a winner for thetender of the Yangon Central RailwayComprehensive Development Project by nextmonth, U Htun Aung Thin, general manager ofMyanma Railways (lower Myanmar).Under the project, Yangon Railway Station is tobe redesigned and rebuilt as an internationalstandard railway station equipped with modernbusiness outlets and a systematic transportationnetwork.The 63-acre project area is located east of SulePagoda, near Bogyoke Aung San Road and BoMinyaung Road, Mingalartaung Nyunt township.The estimated cost for the project is $ 2.5 billion,according to Myanma Railways.U Htun Aung Thin added that rumours of theproject being suspended were not true, and thatthe government wants work to take place asplanned. “We have no plan to suspend the projectand the processes are ongoing,” he added.“The government is performing the necessaryprocedures in selecting the winner for thetender,” he said. “Within next month, we will beready to conduct a preferred tender,” said U Htun

Aung Thin.Under a preferred tender, the winning company isselected based on criteria such as price andquality. After the preferred tender, the companywill sign a contract to undertake constructionwork.The tender for the Yangon Central RailwayComprehensive Development Project was firstlaunched by Myanma Railways in 2014, with atotal of 28 local and international companiesapplying to design, build and operate YangonRailway Station.However, the companies were not able to meetthe necessary requirements and MyanmaRailways called for a second tender in 2015.

Source: Myanmar Timeshttps://www.mmtimes.com/news/yangon-central-railway-comprehensive-development-project-continue.html

NewspapersMyanmar Times

03 Jan 2018

PwC | January 2018 11

Rural development dept aims to light up 1,300 villages this year

The National Electrification Project (NEP), aprogramme jointly implemented by the WorldBank and DRD, will aim to provide power supplyto a total of 1,334 villages in 2017-18.The scheme will be implemented with solar powerinstallation and grid system installation. 1,300villages will have electricity from a solar homesystem per household, and the remaining 34villages will receive electricity from a mini-gridsystem, according to U Khant Zaw, director-general at the DRD under the Ministry ofAgriculture, Livestock, and Irrigation. The civilservant made the remarks during the NEPlaunching ceremony in Nay Pyi Taw on December28. “In order for things to start, the departmentemployees and experts have conducted groundsurveys and collected data. The solar systems willbe installed by utilising the information obtainedfrom the surveys,” U Khant Zaw said.The solar home system per household will befunded by the government and the communitybased on a proportion of the income of the people– villages that have installed the mini-solarsystems will operate through 60pc of funds from

the DRD, and 20pc from companies and citizens.The NEP will fully back the installation of lightsfor street lamps and public buildings. This projectwill prioritise the villages, which are more than 10miles (16.1 kilometres) away from the Mahartransmission line and will not be able to receivepower for another decade. The project wasinitiated with a USD$400 million loan from theWorld Bank. 2016-21 has been marked as the firstfive-year phase for the project, which willcontinue until 2030, DRD director-general said.The NEP has also received technologicalassistance from GIZ; 994 million yen ($8.8million) from Japan International CooperationSystem (JICS); $350,000 from InternationalCooperation Development Fund (ICDF); $2million from the ADB for the pilot project, and €9million ($11 million) from KfW, a Germangovernment-owned Development Bank.

Source: Myanmar Timeshttps://www.mmtimes.com/news/rural-development-dept-aims-light-1300-villages-year.html

NewspapersMyanmar Times

04 Jan 2018

PwC | January 2018 12

Dry port projects to be complete in 2019

Two dry ports in Ywar Thargyi (Yangon) and MyitNge (Mandalay) will be complete in April 2019, aspokesperson for Myanma Railways said. A dryport is an inland intermodal terminal directlyconnected by road or rail.The project, under which freight trains will runfrom Ywar Thargyi to Myit Nge, will commence inApril this year and be complete within 12 months,said U Aung Myint Hlaing, general manager inthe economic department of Myanma Railways.The company launched a tender for the projectson April 2017. Kerry Resources Transport willbuild the Ywar Thargyi dry port, while KerryLogistics Company won the tender for the MyitNge dry port. Plans are currently being drawn upto construct the two ports.A freight train is currently running from Yangon’sWardan warehouse to Paleik station in Mandalaysince August 4, 2017.The train has a total of 11 carriages and onecarriage can carry 60 tonnes of goods. The carryfee is currently K30 for one mile for one tonne ofgoods.“For that train, we have a contract to run one

round trip with 11 carriages in one week. Butsometimes, depending on demand from traders totransport goods, we allow the train to run two orthree times a week. Generally, we allow up to 44carriages to run but sometimes, 80-90 carriagesare needed,” said U Aung Hlaing Myint.When the two dry ports are complete, the freightline will be moved from Wardan-Paleik to YwarThargyi-Myit Nge, according to MyanmaRailways.

Source: Myanmar Timeshttps://www.mmtimes.com/news/dry-port-projects-be-complete-2019.html

NewspapersMyanmar Times

04 Jan 2018

PwC | January 2018 13

Mandalay Region increases water charges and scales up access

EIGHT thousand water meters will be installedfree of charge in Pyigyitagun township with a totalof US$20 million funding from JapanInternational Cooperation Agency (JICA),according to Mandalay City DevelopmentCommittee (MCDC). The committee will alsoincrease the water charges in the regionsignificantly.JICA’s $20 million has been used for thepurchase of pipes, wells, tanks, pumps and watermeters. The project will eventually cover 30pc ofPyigyitagun township, providing access to potablewater for 60,000 households in five wards - Gaward, Gagyi ward, Nga ward, Thin Pan Kone wardand Ngwe Taw Kyi ward.“The water can be distributed in around July.Some people did not apply for the project becausethey did not have the details or they thought it’dcost a lot. The fact is that we will install themeters free of charge. It can cost K50,000 for awater meter and there could be additionalexpenses, depending on the location and length ofthe pipes required. “We will advertise in public ina newspaper in Mandalay,” the water department

of the MCDC stated on January 3.As an example, the authorities will dig three wellsin Tampawati ward and water will be distributedfrom the tank which can hold up to 650,000gallons of water. The authority plans to improvemunicipal services by improving the water qualityand setting up wastewater treatment plants via a$60 million loan from the Asian DevelopmentBank (ADB). It will use French DevelopmentAgency’s (AFD’s) loan of $40 million, ADB’s aid of$4 million, the EU’s aid of 8 million euro andAFD’s aid of 1 million euro to cover 90pc of thehouseholds in four townships. It will also use theAFD’s 1.5 million euro aid for water distributionin Amarapura township and JICA’s $20 millionaid to provide water access to 30pc in Pyigyitaguntownship. The water distribution programmeaims to provide access to potable water for 90pcof the population (more than 800,000 people) infour townships in Mandalay Region.Source: Myanmar Timeshttps://www.mmtimes.com/news/mandalay-region-increases-water-charges-and-scales-access.html

NewspapersMyanmar Times

05 Jan 2018

PwC | January 2018 14

UMFCCI members push for lower tax rates

BUSINESSES at the Union of MyanmarFederation of Chambers of Commerce andIndustry have urged Nay Pyi Taw to lower the taxrate, while the Internal Revenue Department saidthe tax rate has been lowered on an annual basis.Businesses collectively asked the tax rate to bereduced during the Chief Financial Officerconference (CFO conference), which wasorganised at the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)office on December 21. The conference was anavenue in which businessmen from differentsectors discussed the draft tax law for 2018.The executives and investors argued that theexisting tax burden poses a considerable burdenon businesses. The system on which the rebate fortaxpayers is calculated causes difficulties, for one.Meanwhile, the refunding process, as well as thepre-tax rate, were criticised as burdensome.If the feedback and input from the private sectorcould be included in the drafting of the upcomingtax law for 2018, the business environment wouldbe more business-friendly and attractive toinvestors. Hence, businesses will be able to

develop and achieve more robust growth, U YeMin Aung, vice chair of UMFCCI, said.The tax system has been changed to low taxregime with the tax policy updated yearly,according to a statement of the Internal RevenueDepartment on December 3.The Internal Revenue Department added that thegovernment has reduced income tax, commercialtax, stamp duty tax and special tax on goodssteadily since 2012.Income tax for company has decreased from 30pcto 25pc; income tax for individuals has decreasedfrom 2-30pc to 0-25pc; commercial tax hasreduced from 0-25pc to 0-5pc; special tax ongoods has been lowered from 8-100pc to 5-80 pcand stamp duty tax has dropped as well.The department noted that the indirect tax rate ofMyanmar is the lowest within the ASEAN bloc. Ithas an indirect tax rate of 5pc whereas otherASEAN countries have 6-12pc.

Source: Myanmar Timeshttps://www.mmtimes.com/news/umfcci-members-push-lower-tax-rates.html

NewspapersMyanmar Times

05 Jan 2018

PwC | January 2018 15

Myanmar ups minimum wage as economy staggers

Myanmar is set to raise the minimum wage toaround $3.60 a day, state media announcedWednesday, as Aung San Suu Kyi's civiliangovernment struggles to project economicprogress after almost two years in power.The new daily figure of 4,800 kyats represents a33 percent increase on Myanmar's first-everminimum wage introduced in 2015 by theprevious army-backed administration."The new minimum wage will be applied acrossall regions and states to all businesses with 10 ormore workers," the state-backed Global NewLight of Myanmar reported.Suu Kyi's National League for Democracy (NLD),which took power in April 2016, made theeconomy a central plank of its campaign.But critics say it has failed to make real progress,struggling to pass laws that make Myanmar aneasier place to do business or articulate a cleareconomic vision.Myanmar saw GDP growth in2017 slow to 5.9 percent, the InternationalMonetary Fund said in November, estimating arebound to 6.7 percent this year.Supporters of the government contend it is too

early to judge an administration which inherited abattered economy in one of Southeast Asia'spoorest countries.Sean Turnell, an economic consultant to thegovernment, said Suu Kyi's administration hadbeen "highly successful" in tackling high inflation,debt and budget deficits left by decades of juntarule."So their first order of business was to stabilise allof this. Not fun, and not something to bring aboutcheering in the streets," he said.Myanmar's average annual income per capita is$1,140 and roughly 37 percent of the country's 51million people live near or below the poverty line.But with wages lower than regional rivalsCambodia, Thailand and Vietnam, Myanmarwants to lure investors to its manufacturingsector. But business confidence surveys paint adull outlook for a country once celebrated as anAsian growth story.Source: Mizzima Newshttp://www.mizzima.com/business-domestic/myanmar-ups-minimum-wage-economy-staggers

NewspapersMizzima News

05 Jan 2018

PwC | January 2018

2. Weekly Investment News

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PwC | January 2018

Weekly Key Investment NewsHeadlines

Garment industry must raise value proposition to stay sustainable

Kubota to Join $92 Million Project to Improve Water Supply System in Yangon

Myanmar-China bilateral trade hits US$6.3 bn in first 7 months of FY

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Yoma, FMIC spin-off Memories Group commences trading

Pharmaceutical Companies From Indonesia, Myanmar Establish Joint Venture

PwC | January 2018 18

Garment industry must raise value proposition to stay sustainable

2017 was a strong year for the garment exportsector. During the seven months between Apriland November, some $1.5 billion worth ofgarment products were shipped out of Myanmar,bound for warehouses owned by the likes ofUniqlo and Primark in Japan and Europe,according to the Ministry of Commerce (MOC).The pace of growth has been gaining momentumwith labour costs picking up in former low-costmanufacturing hubs like China, and as demandfrom global clothes, lingerie and sportswearbrands rises on the back of growing affluence inmany parts of the world.Now, the garment sector represents Myanmar’ssecond largest export sector, and it is expandingfast. During the 2016-17 fiscal year, the industryexported a garments worth some $2.2 billion,which is up from $1.8 billion the year before,according to the Myanmar GarmentManufacturers Association (MGMA). During2013-14 and 2014-15, garment exports totalled$1.2 billion and $1.5 billion, respectively.Looking ahead into 2018 and beyond though,insiders said more has to be done for growth to

remain sustainable. “The garment sector hasgrown significantly over the past three years. Butto continue expanding, we are planning to reachmore customers in international markets andraise demand,” said Daw Yin Yin Moe, secretaryof the Myanmar Textile Manufacturers’Association.Currently, about a third of locally producedgarments are exported to Japan, while a quartereach is shipped to Europe and South Korea,respectively, according to the MOC. Theremaining merchandise is shipped in smallerquantities to China and the US.To serve a wider range of markets, the industrywill cooperate with the government to host theMyanmar Gar-Tex Expo in Yangon next March.The exhibition will promote Myanmar-madegarment products and expose local manufacturersto international competitors and customers, UKyaw Win, vice-president of MGMA, said.Source: Myanmar Timeshttps://www.mmtimes.com/news/garment-industry-must-raise-value-proposition-stay-sustainable.html

NewspapersMyanmar Times

02 Jan 2018

PwC | January 2018 19

Kubota to Join $92 Million Project to Improve Water Supply System in Yangon

YANGON – Farming and construction equipmentmanufacturer Kubota Corp. has said it will buildwater supply infrastructure in Myanmar’scommercial capital of Yangon together with otherJapanese and South Korean partners, to meetgrowing industrial and household demand forclean water in line with the Southeast Asiancountry’s economic development.The company, which also provides waterenvironment solutions, and its partners havereceived orders worth about ¥10.5 billion ($92.7million) to build a water supply system —including pumping stations, treatment facilitiesand pipelines — from the Yangon MunicipalGovernment, Kubota said. The undertaking ispart of the Greater Yangon Water SupplyImprovement Project aimed at enhancing watersupply services, aided by soft loans from theJapanese government.Teaming with Posco Construction & EngineeringLtd. of South Korea, Kubota will build pumpingstations, distribution reservoirs and disinfectionfacilities at a cost of about ¥5.4 billion, scheduledfor completion in two and a half years.

Kubota Construction Corp., its wholly ownedsubsidiary, will install 45 kilometers of pipelines,including one linking Thilawa — Myanmar’s firstspecial economic zone, jointly developed by theprivate and public sectors of Japan and Myanmar— to the rest of Yangon. The ¥5.1 billion project,to be completed in two years, will also involveMarubeni Protechs Corp., the plant engineeringarm of Japanese trading house Marubeni Corp.Hiroomi Yoshikawa, manager of Kubota’s waterand environment planning and controldepartment, said in a recent interview with NNAthat the facilities for tap water are not onlyimportant for households in Yangon to get cleanwater but are also crucial for the infrastructuredevelopment of the Thilawa zone.The current water supply system in the Thilawaspecial zone is capable of supporting businessoperations in its first phase.Source: Consult Myanmarhttps://consult-myanmar.com/2018/01/04/kubota-to-join-92-million-project-to-improve-water-supply-system-in-yangon/

NewspapersConsult Myanmar

04 Jan 2018

PwC | January 2018 20

Myanmar-China bilateral trade hits US$6.3 bn in first 7 months of FY

The value of Myanmar’s trade with its main tradepartner China, as of October this fiscal year,reached US$6.3 billion, consisting of $2.83 billionin exports and $3.5 billion in imports, accordingto figures released by the Commerce Ministry onJanuary 3.Meanwhile, Myanmar’s regional trade withASEAN countries was the highest, closelyfollowed by bilateral trade with its most populousneighbour, China. Border trade with Chinaperformed better than trade delivered by sea.The value of bilateral trade with China was some$10.8 billion in 2016-2017 FY, $10.9 billion in2015-16 FY, $9.7 billion in 2014-2015 FY, $7billion in 2013-2014 FY, $4.95 billion in 2012-2013 FY and $5 billion in 2011-2012 FY.Between 1 April and 22 December in this financialyear, the value of border trade through China-Myanmar checkpoints — Muse, Lwejel,Chinshwehaw, Kanpiketee and Keng Tung —reached $4.5 billion. Rice, peas, sesame seeds,corn, vegetables and fruits, dried tea leaves,fishery products, rubber, minerals and animalproducts are exported to China, whereas

machinery, plastic raw materials, consumerproducts and electronic tools flow into Myanmar.

Source: Mizzima Newshttp://www.mizzima.com/business-domestic/myanmar-china-bilateral-trade-hits-us63-bn-first-7-months-fy

NewspapersMizzima News

04 Jan 2018

PwC | January 2018 21

Yoma, FMIC spin-off Memories Group commences trading

Memories Group Limited, the tourism arm ofFirst Myanmar Investment Limited (FMIL) andYoma Strategic Holdings, will commence tradingon the Singapore Exchange today.A total of 42.6 million new company placementshares priced at 25 Singapore cents each wereissued to subscribers, while 7.4 million vendorplacement shares were sold at the same price. Thecompany managed to raise S$10.65 million ingross proceeds from the exercise.The Memories Group is the first modern tourism-related business focused on Myanmar.The company comprises three main businessdivisions – Experiences, Services and Hotels.The Experiences business comprises BalloonsOver Bagan, which operates hot air balloon flightsin Bagan and Inle Lake, as well as Bagan Land,which is a commercial and tourism-relatedhospitality development located in Nyaung UTownship, Bagan.Meanwhile, the Services segment comprises theAsia Holidays travel agency, which specialises indesigning and implementing customised tours inMyanmar.

The Hotels business comprises Hpa-An Lodge inKaren State and Pun Hlaing Lodge in Yangon’sHlaing Thayar township.Upon listing, Memories Group will be the firstMyanmar tourism company to be listed on theSingapore Exchange and the first listing for thebourse in 2018.The listing took place via the reverse takeover(RTO) of SHC Capital Asia, a Singapore-listedinvestment holding company backed byMalaysian property developer See Hoy Chan.SHC Asia in November acquired the MemoriesGroup business from FMIL, a local conglomeratelisted on the Yangon Stock Exchange, Singapore-listed Yoma Strategic and a third company,Exemplary Ventures, for S$69.7 million.“Tourism is set to be a growth driver for Myanmarwhich has seen a significant increase in touristarrivals over the years,” said Mr Serge Pun, chairof Memories Group. Mr Pun also controls FMILand Yoma Strategic.Source: Myanmar Timeshttps://www.mmtimes.com/news/yoma-fmic-spin-memories-group-commences-trading.html

NewspapersMyanmar Times

05 Jan 2018

PwC | January 2018 22

Pharmaceutical Companies From Indonesia, Myanmar Establish Joint Venture

Jakarta (ANTARA News) – Indonesianpharmaceutical company PT. Phapros Tbk, asubsidiary of PT Rajawali Nusantara Indonesia(RNI), and Myanmar`s pharmaceutical firm MediMyanmar Group have established a joint ventureto develop the business of pharmaceuticals andmedical devices.According to a statement from PT. Phapros Tbkreceived by ANTARA here on Friday, thecooperation was marked by the signing of amemorandum of understanding betweenPhapros` Executive Director Barokah Sri Utamiand Medi Myanmar Group Founder Win Si Thuon December 21, 2017, in Yangon, Myanmar.The signing event was attended by IndonesianAmbassador to Myanmar Ito Sumardi, Director ofFinance of PT. RNI, who is also commissioner ofPT. Phapros Tbk M. Yana Aditya, andCommissioner of PT. RNI Aditya Dhanwantara.The cooperation strengthens the presence ofPhapros in the Association of Southeast AsianNations (ASEAN) market after having earliersuccessfully ventured in the Cambodian,Philippine, and Vietnamese markets.

According to Barokah, the joint venture will befocused on establishing factories. In the earlystages, the plant is ready to produce non-antibiotic tablets and capsules and will thendevelop parenteral products.Parenteral drug administration means any non-oral means of administration but is generallyinterpreted as relating to injecting directly intothe body, bypassing the skin and mucousmembranes.“We are conducting a study. Whileawaiting the plant to become operational, we willexplore the opportunity of exporting OTC or over-the-counter drugs that can be sold without adoctor`s prescription,” she explained.Medi Myanmar Group is one of the leadingpharmaceutical companies in Myanmar that wasestablished in 1991, with its main business beingimport, marketing, and distribution ofpharmaceutical products.Source: Consult Myanmarhttps://consult-myanmar.com/2018/01/05/pharmaceutical-companies-from-indonesia-myanmar-establish-joint-venture/

NewspapersConsult Myanmar

05 Jan 2018

PwC | January 2018

3. Weekly New Tenders

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PwC | January 2018

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/ .

24

No applicable Tenders announced for the week ending 05 January 2018

PwC | January 2018

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-8987 MYA: Consultant Recruitment Specialist (46370-002),Closing Date: 06 Jan 2018 (Individual)

WB: Myanmar Floating Solar Development Study, Closing Date: 25 Jan 2018

WB: Development of Methodologies, Toolkits and Training Module for Assessment and Enhancement of Client Capacity for Management of Environmental and Social Safeguards,Closing Date: 08 Jan 2018

WB: Myanmar: Rapid Multi-Hazard Risk Assessment of the Yangon Region Water Supply Network and Infrastructure System, Closing Date: 31 Jan 2018

WB: IFC Gender-Lens Investing for Fund Managers, Closing Date: 10 Jan 2018

PwC | January 2018

4. MIC Permitted Projects

26

PwC | January 2018

MIC Permitted Projects (Meeting 17, 2017)

27

No. Name of Company Type of Investment Form of Investment

1 Join Global Myanmar Co., Ltd Poultry breeder farm and hatchery Wholly Foreign Owned

2 CJ Feed Myanmar Co., Ltd Poultry breeder farm and sale of hatching eggs Wholly Foreign Owned

3 Ruby Rose Co., Ltd Hotel services Myanmar Investment

4 Mandalay Garden City Construction Co., LtdConstruction, selling, leasing and management of apartment

Myanmar Investment

5 MTG DC Co., LtdConstruction and maintenance of telecommunication towers

Myanmar Investment

6 FMIDecaux Co., Ltd

Design Fabrication, installation, maintenance and operation of street furniture items and operation of advertisement on those items in the city of Yangon

Joint Venture Investment

7 Malikha Yadanar Mining Co., Ltd Concentration and sale of lead Myanmar Investment

Source: DICA

PwC | January 2018

MIC Permitted Projects (Meeting 17, 2017) (cont’d)

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No. Name of Company Type of Investment Form of Investment

8 Min Khit Thit Mining Co., Ltd23 MW Tachileik coal fired thermal power plant project

Myanmar Investment

9 Chipwi Nge Hydropower Co., LtdConstruction of 99 MW hydropower plant for electricity generation and power supply

Joint Venture Investment

Source: DICA

PwC | January 2018

5. Upcoming Events

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PwC | January 2018

Upcoming Events (January 2018) List

Date Location Name of Event Sector Price Focus Points

19-21 Jan 2018 Yangon

Myanmar Agriculture Food & Beverage Trade Show

F&B Free

The event will showcase the latest in Myanmar Agriculture, Food Processing, Beverage, Procurement and Allied Sectors produce, manufacture and practice in Myanmar and abroad, making it a significant platform for business partnerships worldwide.

25-26 Jan 2018 YangonMyanmar Oil Gas & Power Summit

Energy Free

Organized by the Centre for Management Technology Pte. Ltd and the conference will cover areas like Recent PSCs Development & Upcoming Tender for Upstream Oil/Gas Blocks, Myanmar Offshore Exploration Updates, Realizing LNG Imports Potential EPC Markets, etc.

31 Jan- 2 Feb 2018

Yangon

International Congress on Geology, Resources and Geo-Hazards of Myanmar and Surrounding Regions

Geology 300USD

GEOMYANMAR 2018 is intended to expand participation from geosciences communities worldwide to open a new chapter of Collaboration among international geological institutions. In this regard, the Myanmar Geosciences Society cordially invites all of you to participate in this event.

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Note: Events information are collected from https://www.go-myanmar.com/events-and-conferences and https://10times.com/myanmar .

PwC | January 2018

Upcoming Events (February 2018) List

Date Location Name of Event Sector Price Focus Points

7-8 Feb 2018 Yangon

9th Mobile Money & Agent Banking Summit 2018

Banking and Finance

TBC

Showcase your expertise and products through our customized exhibition and sponsorship packages which will reinforce your corporate branding and thought leadership position in the industry amongst finance and telecommunications regulators, investors and stakeholders who are already establishing the necessary mobile payments infrastructure in their respective countries.

22-23 Feb 2018 Yangon

International Conference on Computer Applications 2018

Technology

200 USD for Foreigner and 75,000 MMK for Local

Organized by University of Computer Studies, Yangon under Ministry of Education, Myanmar, provides a forum for the presentation of technological advances and current research results in the fields of theoretical, experimental and applied computing and technologies.

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Note: Events information are collected from https://www.go-myanmar.com/events-and-conferences and https://10times.com/myanmar .

© 2018 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 Directorjovi.seet@sg.pwc.com

Brandon LyeDirectorbrandon.lye@sg.pwc.com

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