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H.E.UThaungTunUnionMinisterMinistryofInvestmentandForeignEconomicRelations22.12.2020NayPyiTaw,Myanmar

MyanmarInvestmentEnvironmentUpdateWebinar

ASEAN-JapanCentre

COVID-19’SIMPACTONTHEGLOBALECONOMYANDMYANMAR

ASEANGDPGrowthp.a.,1999-2025f

-12%

-8%

-4%

0%

4%

8%

12%

16%

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021f 2023f 2025f

Myanmar

FacilitatingMyanmar’spost-COVID-19EconomicRecovery

Goal3EasingtheImpactonLabourers&Workers

Goal2EasetheImpactonthePrivateSectorthroughImprovements

toInvestment,Trade&BankingSectors

Goal1ImproveMacroeconomicEnvironmentthroughMonetaryStimulus

Goal4EasingtheImpacton

Households

Goal5PromotingInnovativeProducts&Platforms

Goal6HealthcareSystems

Strengthening

Goal7IncreaseAccesstoCOVID-19Response

Financing(IncludingContingencyFunds)

FacilitatingMyanmar’spost-COVID-19EconomicRecovery

The Myanmar Economic Recovery & Reform Plan DRAFT 7 | 30.10.2020 | 30/10/20 1:44:11 pm

1

GOVERNMENT OF THE REPUBLIC OF THE UNION OF MYANMAR

Overcoming as One: COVID-19 Economic Relief Plan 27 April 2020

FacilitatingMyanmar’spost-COVID-19EconomicRecovery

“…theexpressionofournationaldevelopmentvision–avisionwhichfindsresonanceintheglobal

sustainabledevelopmentagenda.”

“…criticaltoensuringthatallourprojectsandinitiatives,regardlessoftheirsourceoffinancing,areproperlylinkedanddirectedtowardsthesame

goals.”

H.E.DawAungSanSuuKyiStateCounsellor,

GovernmentoftheRepublicoftheUnionofMyanmar

Japan-MyanmarInvestmentRelations

ApprovedFDItoMyanmarbySource,FY2011/12-FY2020/21

$0B

$0.5B

$1B

$1.5B

$2B

$2.5B

$3B

SGP CHN THA HKG GBR KOR VNM JPN MYS NLD IND USA FRA IDN CAN TWN WSM UAE PHL AUS

$0.01B$0.01B$0.01B$0.02B$0.02B$0.02B$0.03B$0.06B$0.06B$0.08B$0.16B$0.2B$0.2B$0.22B

$0.41B$0.5B

$0.98B

$1.14B

$2.15B

$2.4B

Japan

WhyInvestinMyanmar?

• ASEANmembershipoffersregionaltradebenefits

• ImportantcrossroadsinChina’sBeltandRoadInitiative(BRI)infrastructurenetworkconnectingEuropeandAsia,fosteringeconomiccooperation

• Richsupplyofnaturalresources,includingforests,mineralsandnaturalgas

• Abundantagriculturalresourcesandmarineresources

• Highpotentialfortourism • Attractivelabourforce/demographicprofile-providingoneofAsia’slowestlaborcosts

GeographicalAdvantages

• LargestcountryontheSoutheastAsianmainland

• Strategicallylocatedinoneoftheworld’sfastestgrowingregions-aland-bridgebetweenSouthandSoutheastAsia

• Blessedwith1,200milesofuninterruptedcoastline-fromtheBayofBengaltotheAndamanSea

• Bordering40%oftheworld’spopulation

• Agrowingpopulationof54millionpeople,includingarapidlygrowingmiddleclass-withamedianageofjust27

StrongEconomicFundamentals

• Afastgrowingmiddleclass

• Pro-investmentreforms

• HighGDPgrowth.• SpecialEconomicZonesinThilawa,Dawei,KyaukpyuandsoonMon

• Richinnaturalresourcesincludingoil,naturalgas,industrialmineralsandgems

• Vastlandmass

• Populationofover54million

• Ayounglowcostworkforce

• StrategicallylocatedbetweenIndia,ChinaandThailand

• LandconnectiontoGreaterMekongsupplychain

• AccesstoIndianOcean

InvestmentFriendlyReformMeasures

0%

3%

6%

9%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020f 2021f 2022f 2023f 2024f 2025f

2%

6.5%6.4%

5.8%

6.4%

7.5%

8.2%7.9%

6.5%

5.5%5.2%

4.4%

Military USDP NLD

TelcomsLicensesIssued

ThilawaSEZ

EUSanctionsIssued

ForeignBankLicenses

YSXOpens

USSanctionsLifted

NewMFIL

4thLicenseIssued

NewMILandCompaniesLaw

InsuranceLiberalisation

Wholesale&RetailOpened

ProjectBankLaunched

ForeignOwnership

COVID-19

RelaxingRegulatoryRestrictiveness

Myanmar,OECDFDIRegulatoryRestrictivenessIndex

0%

10%

20%

30%

40%

50%

2013 2014 2015 2016 2017 2018

MyanmarInvestmentLaw

• Enteredintoforceon18October2016• ConsolidatesandreplacespreviousForeignInvestmentLaw(2012)andCitizensInvestmentLaw(2013)

•MyanmarInvestmentRules2017enteredintoforceon30March2017

Compulsoryforthefollowingclassesofinvestmentactivitieswhich:• arealignedtoMyanmar’s

strategy• arelargecapital-intensive

investmentprojects• havelargeimpactonthe

environmentandlocalcommunity

• useofstate-ownedlandandbuildings

• aredesignatedbythegovernmenttorequirethesubmissionofaproposal

Optionalbutallowsinvestorstobenefitfrominvestmentincentives•AnexpeditedprocesscomparedtotheMICPermit

•Benefitsinclude:long-termlanduserights(upto50+10+10year)andexemptionsandreliefs–especiallybeneficialforforeigninvestorswhoaregenerallyprohibitedfromenteringintoleaseagreementsofmorethanoneyearunlessexempted

MICPermit

MICEndorsement

MyanmarCompaniesLaw

• Enteredintoforceon1August2018• Includesanonlinebusinessregistry–MyanmarCompaniesOnline(MyCo)

•Wholesalerevisionofthe1913CompaniesAct(exceptforinsolvencyprovisions)basedonAustralia,SingaporeandUKversions

• Aimstomoderniseregulatoryframework,makingiteasierforlocalcompaniestoattractinternationalfundingandexpertise

“AcompanyincorporatedintheUnioninwhichanoverseascorporationorotherforeign

person(orcombinationofthem)ownsorcontrols,directlyor

indirectly,anownershipinterestofmorethanthirty-fivepercent”

IntellectualPropertyProtections

TrademarkLaw

30January2019

IndustrialDesignLaw

30January2019

PatentLaw

11March2019

CopyrightLaw

24May2019

MyanmarCompaniesOnline“MyCo”

• Onlineanduptodate,publiclysearchable,andreliable

• Efficientandcost-effectivewayforcompaniestofiledocumentswithDICA

LegalDevelopments

January2019

August2019

Novem

ber2019

February2020

March2020

May2020

October2020

Novem

ber2020

TRADEMARKLAWFrameworkforatrademarkregistrationsystemonafirsttofilebasis

Decem

ber2019

SAFEGUARDLAWLawtomanagesuddenandunexpectedsurgeinimportswhichcouldcauseseriousinjurytothelocalindustry

INSOLVENCYLAWFrameworkforbothvoluntaryandinvoluntaryliquidationprocesses,aswellascorporaterescueandrehabilitationprocesses

FOREIGNPARTICIPATIONONYSXForeignersbothresidentandnon-residentinMyanmarpermittedtopurchasesecuritiesonYSX

INDUSTRIALZONELAWFrameworkforsettingupofanindustrialzonebyaprivatedeveloperthroughlandtenuredfromthegovernment

REINSURANCEInsurancecompaniestobepermittedtoprovidereinsuranceservicesfromoffshoresourceseffective1October

RULESONUNSOLICITEDPROPOSALSPPPCentreissuedrulesonunsolicitedproposalson12October2020

ELECTIONS

LANDACQUISITION,RESETTLEMENTANDREHABILITATIONLAWFrameworkformostlandacquisitionandrepealedthe1894Law

AMENDMENTTOTHESTAMPACTReducedlatepenaltyfrom10timestheoriginalstampdutyto3times

TheProjectBank

• Anopen,interactive,web-basedplatformdesignedtohighlightinvestmentprojectsreadyforfinancingandimplementation

• Facilitatestheidentification,screening,appraisalandprioritisationofmajorprojects

• Fostersreal-timemulti-stakeholdercollaborationatalllevelse.g.betweenImplementingGovernmentAgenciesatbothUnionandtheStateandRegionlevelsandProjectBankTeam

• Enablesmoreefficient,informed,timelydecisionmakingandcoordination

• Accessibleviawww.projectbank.gov.mm

MyanmarInvestmentPromotionPlan

•AttheheartofMyanmar’srecenteconomicboomistheMyanmarInvestmentPromotionPlan(MIPP)launchedinOctober2018tostimulateitseconomyandattractUS$200billioninFDIover20years

•Theplanoutlineskeyobjectives,suchasbuildingatransparentlegalframeworkandimprovingcriticalinfrastructure,whichwillhelpMyanmartoachieveitsgoalofdevelopingintoamiddle-incomecountryby2032

•Keyprioritiesinclude:•Establishmentofafairandtransparentregulatoryregimeforinvestment

•Enhancementofinstitutionsforinvestmentpromotion• Infrastructureimprovement•Establishmentofsupportivebusiness-relatedsystems•Establishmentofcompetitiveindustriallinkageandimprovedhumanresources

RegionalComprehensiveEconomicPartnership(RCEP)

RCEP Members (share of world GDP, at purchasing power parity (%)

0T

35T

70T

105T

140T

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Other Euro Area RCEP

PromotedSectors

Agriculture

SupplyandTransportServices

PowerGeneration

PlantationandConservation

Telecoms

InformationTechnology

LivestockandFisheries

Education

HotelsandTourism

Manufacturing

Healthcare

ScienceResearchandDevelopment

Industry,ManufacturingandInfrastructure

Mandalay-KyaukphyuRailway

Muse-MandalayRailway

1GWsolartender(tobelocatedthroughoutthe

country)

1.39GWMeeLaungGyaingLNGpowerplant

NewYangonCity

NewMandalayResortCity

1.25GWLNGpowerplantinThilawa(recentlyannounced)

YangonCentralStationDevelopmentProjectandKyeemyindaingTOD

MonStateSEZ(recentlyannounced)

400MWThaketaLNGpowerplant

KyaukPhyuSEZ

Korea-MyanmarIndustrialComplex

HleguIndustrialPark

YangonAmataSmart&EcoCity

YangonElevatedExpressway

HanthawaddyInternationalAirport

WestYangonIndustrialPark(recentlyannounced)

YangonOuterRingRoad

IndustrialParksandSpecialEconomicZones

DaweiSpecialEconomicZone

KyaukPhyuSpecialEconomicZone

MonStateSpecialEconomicZone

ThilawaSpecialEconomicZone

Coming Soon

InvestmentPromotion

“Myanmarisintheprocessoftransforminganopaque,non-competitive,connections-basedeconomyintoalarger,more

transparent,morecompetitive,rules-basedeconomy.”

H.E.DawAungSanSuuKyi,StateCounsellorGovernmentoftheRepublicoftheUnionofMyanmar

Conclusion

“PleasedocometoMyanmar,soakinanatmospherebrimmingwithopportunities,andwitnessournewfoundeconomicvibrancywithyourowneyes."

“Iwishallofyouthevery,verybestaswegoforwardinourbusiness-to-businessengagementsandalsoinourpeople-to-peoplerelationships.Wevaluethedeep,genuineandmutuallybeneficialfriendshipsthatcanbringpeoplesandbusinessestogetherforthe

benefitofall.”

"Istandheretoreaffirmourcommitmenttocontinueourreformandtobuildaninvestment-friendlyenvironment”

StateCounsellorDawAungSanSuKyi

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