PwC MyanmarWeekly Business Intelligence

Issue 19007 December 2019

www.pwc.com/mm

PwC | December 2019

Disclaimer

PricewaterhouseCoopers Myanmar Co., Ltd helps organisations and individuals create the value they’re looking for. We’re a member of the PwCnetwork of firms in 157 countries with more than 270,000 people who are committed to delivering quality in assurance, advisory and tax services.Tell us what matters to you and find out more by visiting us at www.pwc.com/mm.

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

© 2019 PricewaterhouseCoopers Myanmar Co., Ltd, a company duly established and operating under the laws of Myanmar. All rights reserved.PwC refers to the Myanmar member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please seewww.pwc.com/structure for further details.

The information contained in this publication is for general guidance on matters of interest only and is not meant to be comprehensive. Theapplication and impact of laws can vary widely based on the specific facts involved. Before taking any action, please ensure that you obtain advicespecific to your circumstances from your usual PricewaterhouseCoopers Myanmar Co., Ltd client service team or your other tax advisers.

2

PwC | December 2019

1. Weekly Key Financial & Business News

3

PwC | December 2019

Weekly Key Financial & Business NewsHeadlines

Sluggish real estate market does not meet expectations despite lowering of tax rates

Investing in Myanmar? Do due diligence

AIA Myanmar becomes first foreign life insurance company in Myanmar

Myanma Tourism Bank to start fund to promote sector

4

High-end eco beach resort project proposed in Gwa, Rakhine

PwC | December 2019

Weekly Key Financial & Business NewsHeadlines

Country’s largest mini-grid unveiled in Magway

First Private Bank to Sell 35 Percent Stake to Foreign Banks

First phase of NEP to be complete by 2021

Myanmar wants mobile user biometrics

5

Taiwan seen as low-profile, yet high potential investor in Myanmar

PwC | December 2019 6

Investing in Myanmar? Do due diligence

The Tatmadaw has a long reach into commercialinterests. Companies accountable to a growingrange of stakeholders need to assess theirexposure to the military.RISK and opportunity have always accompaniedinvestors in Myanmar. The recent initiatives byboth the United Nations (UN) and the US toensure that foreign direct investment (FDI) onlyenriches civilian enterprises and not Myanmar'spowerful military-backed entities make itimperative for foreign investors keen on operatingin Myanmar to be very sure about the backgroundand military links of their partners.In August this year, the UN's IndependentInternational Fact Finding Mission on Myanmarreleased an 111-page report outlining howcompanies affiliated with the Tatmadaw(Myanmar's armed forces) have supported"extensive and systematic human-rightsviolations against civilians in the Kachin, Shanand Rakhine states."The UN report urged companies to stop doingbusiness with firms linked to the military, inparticular the Myanmar Economic Corporation

(MEC) and the Union of Myanmar EconomicHoldings Ltd (UMEHL).Primarily owned by the Ministry of Defence, MECand UMEHL between them control businessesthat range from golf resorts and sugar mills totelecommunications, breweries and gemstones.The UN report calls for reducing the economicpower of both groups in order to drive greatercorporate transparency in the country. It hasidentified close to 60 foreign companies withcommercial ties with such Tatmadaw-backedbusinesses, all of which, "at a minimum,contribute to supporting the military's financialcapacity". It calls for immediate, targetedsanctions against MEC, UMEHL and theirsubsidiaries, and for companies to step up theirdue-diligence processes to ensure that theirsupply chains are free of involvement withmilitary-owned businesses.

Source: Business Timeshttps://www.businesstimes.com.sg/opinion/investing-in-myanmar-do-due-diligence

NewspapersBusiness Times

28 Nov 2019

PwC | December 2019 7

Sluggish real estate market does not meet expectations despite lowering of tax rates

Despite of lowering taxes, the sluggish domesticreal estate market reportedly does not meetexpectations of recovery.Myanmar Real Estate Services Association(Yangon) Chairman Htay Myint said that theyexpected the domestic real estate market wouldhave recovered for about 70% after lowering taxesbut only about 35% had met that expectation.“Because it was late as the timing is close togeneral elections and then the investors have await and see attitude. So it does not have theimpact on the market as expected,” he said.However, Htay Myint added that the domesticreal estate market which was previously almostdead has slightly responded to the move oflowering taxes.“The market started to move in some placesthough it does not move on a larger scale in theentire country. Some sellers raised their pricequotations and some buyers showed interest forgiving offers,” Htay Myint added.Currently deals were made in Yangon Region forsingle houses built on single plot worth about onebillion kyats and also land prices are slightly

higher in Dalla and Dgaon Lay Townships wherethere are development projects.The old sale tax for immovable fixed assets of landand building is 15% up to 30 million kyats, 20%for land and buildings worth between 30-100million kyats and 15% for more than 100 millionkyats. These rates were reduced in the 2019Union Tax and Revenue Law starting fromOctober this year to 3% for lands and buildingsworth up to 100 million kyats, 5% for these assetsworth between 100-300 million kyats, 10% forbetween 300 million and one billion kyats, 15%for between one billion and three billion kyats and30% for above three billion kyats respectively.These new real estate tax rates came into effectfor the new financial year starting from October 1,2019 and ending September 30, 2020.

Source: Mizzima Newshttp://mizzima.com/article/sluggish-real-estate-market-does-not-meet-expectations-despite-lowering-tax-rates

NewspapersMizzima News

30 Nov 2019

PwC | December 2019 8

AIA Myanmar becomes first foreign life insurance company in Myanmar

AIA, recently announced that it has signed up itsfirst life policy insurants, just after receiving itslicense from Ministry of Planning and Finance(MoPF).AIA Myanmar achieved the license fromMyanmar government to sell its life insurancepolicies through a 100% wholly-owned subsidiary.The first policies signings kick off AIA’s efforts tooffer Myanmar communities top life insuranceservices which feature extra benefits on top of itscore products for customers. These includediscounts for qualified insurants and convenientaccess to a wealth of expertise from its team ofconsultants on innovative coverage choices andhealth services.Mr. Nhon Ly (Luc), CEO of AIA Myanmar said,“We are excited to inform the people of Myanmarthat we have received the regulatory approvalfrom the Ministry of Planning and Finance(MoPF) to commence operations and offer lifeinsurance policies for the people of the country.This is a truly a momentous moment for theinsurance industry here. As we forge ahead toexpand our operations throughout Myanmar, AIA

aims to grow the local insurance industry,leveraging our company’s 100 years of experience,to deliver on our promise to ensure people enjoyHealthier, Longer, Better Lives.The company has now also announced that it hassigned up its first health insurance policy holders,U Zaw Zaw, Chairman of Max Myanmar Group ofCompanies, U Aung Chit Khin, an entrepreneur,marketer and educator who actively promotes therole and responsibility of business organizationsin the country’s development, U Zaw Zaw Aung,Associate Professor, Ko Htoo El Lynn, a popularvocalist in Myanmar, and Ko Htoo Char, a well-known actor.The headquarters of AIA Myanmar is located atOffice Tower of Junction City, integrateddevelopment strategically located at the junctionof Bogyoke Aung San Road and ShwedagonPagoda Road in the city’s central business district.

Source: The Global New Light of Myanmarhttps://www.globalnewlightofmyanmar.com/aia-myanmar-becomes-first-foreign-life-insurance-company-in-myanmar/

NewspapersThe Global New Light of Myanmar

01 Dec 2019

PwC | December 2019 9

Myanma Tourism Bank to start fund to promote sector

Myanma Tourism Bank (MTB) has announcedthat it intends to pay a portion of its annualprofits to a tourism fund which will be deployedto promote the sector.“More needs to be done to promote Myanmar as atourist destination so we are channeling 5 percentof our earnings into a fund to promote tourism,”U Yan Win, chair of MTB, told The MyanmarTimes.He added that the funds will go towardssupporting the Ministry of Hotels and Tourism inmarketing the country to tourists.The Myanmar Tourism Federation had earlierthis year requested a higher budget for tourism bycollecting more taxes from tourists, U Yan Winsaid. Data showed that from January toSeptember this year, more than 1.3 millionforeign tourists visited Myanmar, representing a41pc increase compared to the same period lastyear.The ministry said the increase can be attributed tomore visitors coming from Asian countries, suchas Japan, South Korea and China, which havebeen the targets of the government’s “Look-East

policy” for tourism.Tourists from China, Japan and South Korea haveincreased significantly since the governmentrelaxed visa requirements for travelers from thosecountries in October last year, say tourismstakeholders.MTB was one of five sector-specific banks whichwere granted a banking license by the CentralBank of Myanmar (CBM) in 2017. It was foundedby a public tourism company during U TheinSein’s government. K2 billion was raised to startthe bank so it could help boost the tourism sector.

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanma-tourism-bank-start-fund-promote-sector.html

NewspapersMyanmar Times

03 Dec 2019

PwC | December 2019 10

High-end eco beach resort project proposed in Gwa, Rakhine

Local company Sea Lion Group has announced itsintention to build an eco-resort at a site locatedalong Ma Kyay Ngu Beach, near Gwa Township,Rakhine State.According to information made available to TheMyanmar Times, Sea Lion Group informed theRakhine State government that it is proposing tobuild a hotel, shopping centre, and an organicfarm on a 20 hectare site across the Gwa Riverfrom Gwa Township.The project will include swimming pools, an 80-room hotel, arrival jetty, and areas specifically forshallow swimming, water sports, and children.The company said, upon receiving approval forthe project, construction will begin in phases.According to the proposal, the company willinvest K7.5 billion (US$4.9 million) in the projectwhich is expected to support economic and socialdevelopment in the area.The region has a beautiful natural environmentand beach areas suitable for tourism-basedbusinesses. Infrastructure projects to improveelectricity supply, and roads in the area, alsomake it a good time to invest in projects, the

company said.It added that it is hoped that the project will beable to share Rakhine's natural beauty, boosttourism, provide job opportunities for localpeople, promote a love for nature andenvironmental conservation, improve the region'seconomic and social standards, and establish ahigh-end beach resort good enough to attractinternational travellers.The site of the proposed project is currentlycategorised as agricultural land, and the companyis in the process of having the status reclassifiedby the authorities.

Source: Myanmar Timeshttps://www.mmtimes.com/news/high-end-eco-beach-resort-project-proposed-gwa-rakhine.html

NewspapersMyanmar Times

03 Dec 2019

PwC | December 2019 11

First Private Bank to Sell 35 Percent Stake to Foreign Banks

First Private Bank, the only listed bank inMyanmar, will take on foreign partners, which bylaw can own up to 35 percent of its shares, thebank revealed at its November 24 annual generalshareholders’ meeting. It has not yet named anypotential partner.The meeting resolved to sell up to 35 percent ofshares listed on the Yangon Stock Exchange.Three new directors were appointed, namely UTun Sai, U Myint Lwin and U Htin Aung KyawOo, following the resignation of Daw Hla Hla Yiand dismissal of U Phyo Hla Wai from the board.Dividend payment of K2,500 per share for a totalof over K6.18 billion was approved for the 18-month period from April 2018 to September2019.

Source: Myanmar Business Todayhttps://mmbiztoday.com/first-private-bank-to-sell-35-percent-stake-to-foreign-banks/

NewspapersMyanmar Business Today

03 Dec 2019

PwC | December 2019 12

Country’s largest mini-grid unveiled in Magway

Mandalay Yoma Energy on Tuesday launchedMyanmar’s biggest solar mini-grid for rural areasin Magway Region on Tuesday.With the mini-grid, up to 400 households inMagway’s Lel Ma village now have access toelectricity. Myanmar’s electrification rate is one ofthe lowest in the world at around 50 percent.Kapil Seth, chief executive officer of MandalayYoma Energy, hailed the investment as alandmark in electricity access for remote areas ofthe country.“We see tremendous potential as we strive todeliver sustainable energy access to more homesand enhance the quality of our services for endcustomers,” Seth said in a press statement.Mandalay Yoma Energy is a solar energy jointventure between French ENGIE Group’s GDFInternational SAS and Singapore-basedconsultancy Sol Partners Pvt Led.“This is a significant milestone towards our visionof providing 20 million people around the worldwith access to sustainable, decentralised energyby 2020,” said ENGIE Asia-Pacific CEO PaulMaguire. Mandalay Yoma Energy says it is

looking to develop more solar and hybrid mini-grids to electrify tens of thousands of householdsacross Myanmar’s rural areas and work closelywith the Department of Rural Development todevelop more mini-grid programmes.The Rural Development Department’s mini-gridprogrammes are part of the World Bank-supported Myanmar National Electrification Plan2030 that aims to electrify every household in thecountry by 2030.The World Bank released a report this yearestimating that US$2 billion of annualinvestments by 2030 are required to reachcomplete electrification. Myanmar’s power needsare growing by 15-17pc per year, according to theMinistry of Electricity and Energy.Last month, a study by International FinanceCorporation (IFC) revealed that there are morethan 700 megawatts, 10pc of the country’sexisting power generating capacity, worth ofpotential commercial and industrial solar projectsSource: Myanmar Timeshttps://www.mmtimes.com/news/countrys-largest-mini-grid-unveiled-magway.html

NewspapersMyanmar Times

05 Dec 2019

PwC | December 2019 13

First phase of NEP to be complete by 2021

A handful of companies which won tenders toprovide electricity to some 5000 villages inMyanmar under the first phase of the NationalElectrification Programme (NEP) are expected tocomplete their work by the end of next year, saidU Saw Win Maung, managing director fromElectricity Supply Enterprise (ESE).The companies are currently undergoing thenecessary construction work with loans from theWorld Bank. Currently, more than 800 villageshave already been provided with electricity. Workincludes building 11 KV power lines andtransformers across the country.The project aims to supply electricity to villages inSagaing Region, Shan State, Ayeyarwady Region,Mandalay Region, Yangon Region, MagweRegion, Chin State and east Bago Region, whichare still underserved by the national grid.The Ministry of Electricity and Energy (MOEE)implemented the NEP with the aim of extendingelectricity coverage to at least 55percent of thecountry by 2020, 75pc in 2025 and to allhouseholds by 2030. The NEP is being supportedby US$400 million worth of loans provided by the

World Bank. So far, US$310 has been expended.The Department of Rural Development under theMinistry of Agriculture, Livestock and Irrigationhas taken charge of electrifying off-grid areas,using $90million.

Source: Myanmar Timeshttps://www.mmtimes.com/news/first-phase-nep-be-complete-2021.html

NewspapersMyanmar Times

05 Dec 2019

PwC | December 2019 14

Myanmar wants mobile user biometrics

People in Myanmar will be required to give theirbiometric data, including thumbprints, whenbuying mobile phone services under acontroversial government plan to store privateinformation on a central database.A tender document issued last month and seen byThe Myanmar Times invites bids for a “nationaldatabase to store and manage biometric mobilesubscriber registration information from allmobile network operators in Myanmar.”The biometric information includes at least aperson’s name, both thumbprints, identity type,identity number and scan of identity card, thedocument says. It may also contain the father'sname, date of birth and street address.The tender, which is still open, was put out by thePosts and Telecommunications Department(PTD) under the Ministry of Transport andCommunications. It does not say when the systemis to start operation.The PTD says in the document that it “intends tobuild a national database capturing biometricsubscriber registration information of everymobile network user” in order to “ensure proper

and secure registration of mobile network usersand to prevent any malicious use of mobilenetworks.”The contact persons for this tender have notresponded to written requests for comment byThe Myanmar Times.“We cannot think of a single legitimate reason tocollect such complex information. It’s veryworrying that the Ministry of Transport andCommunications is intending to ask telecomscompanies to collect biometric information,”commented Ma Yin Yadanar Thein, director ofwatchdog Free Expression Myanmar.“All governments want to collect limited telecomsinformation, for example to improve services andpolicies, or to prevent crime. However, askingtelecoms companies to collect biometricinformation - which is deeply personal - is thesort of grossly disproportionate policy that onlyauthoritarian countries do.

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-wants-mobile-user-biometrics.html

NewspapersMyanmar Times

05 Dec 2019

PwC | December 2019 15

Taiwan seen as low-profile, yet high potential investor in Myanmar

A Taiwan-led industrial zone half the size of theThilawa Special Economic Zone is underconstruction northwest of Yangon.The 890-hectare Htantabin Technology Park aimsto create 150,000 jobs and attract over US$330million in investments over the next eight years.The backers of the project estimate that the figurewill rise to US$840 million in 15 years.The project is led by Wedtex IndustrialCorporation, a Taipei-based lace maker, whichsaw the potential of Myanmar as a manufacturingbase as early as 2009, before the country openedup.While other large manufacturing-centereddevelopments in the region such as the SergePun-led Yangon New City, the Korea-MyanmarIndustrial Complex, and Thilawa have attractedmedia attention, Htantabin has flown below theradar like many other Taiwanese investments.Once launched though, the Taiwan-backed zonewill rival its more high-profile counterparts inattracting investors to set up shop with landleases of up to 70 years, tax exemptions, as well asinfrastructure such as wastewater treatment

system and electricity.The project reflects the appetite of Taiwanesebusinesses for investments in Myanmar. Theworld’s fifth largest creditor with US$1.28 trillionin net foreign assets as of 2018 has shifted itsfocus from China to Southeast Asia in recentyears, hoping tap into one of the fastest-growingmarkets in the world.As of September, Taiwan’s accumulated foreigndirect investment in Myanmar since 2013 stood atUS$131 million, according to the Directorate ofInvestment and Company Administration (DICA).This excludes approvals made in Thilawa as wellas Taiwanese investments in Myanmar channeledthrough Singapore, Hong Kong and other cities.Within Thilawa, for instance, only one approvedinvestor is officially classified as Taiwanese,though four other Taiwanese investors haveinvested through their subsidiaries into the SEZ.

Source: Myanmar Timeshttps://www.mmtimes.com/news/taiwan-seen-low-profile-yet-high-potential-investor-myanmar.html

NewspapersMyanmar Times

06 Dec 2019

PwC | December 2019

2. Weekly Key Policy News

16

PwC | December 2019

Is China dictating Myanmar’s vision for its future – fact or hysteria?

Weekly Key Policy NewsHeadlines

Myanmar Watchdog Criticizes ‘So-Called’ Public Consultation Process for China's BRI Project

Can Myanmar’s state-owned banks turn challenges into opportunities?

Myanmar reduces stamp duty penalties

17

Myanmar’s interventionist trade bill alarms business

PwC | December 2019 18

Myanmar Watchdog Criticizes ‘So-Called’ Public Consultation Process for China's BRI Project

The Heartland Foundation was formed in Lashio,northern Shan State in 2012 and has become aleading environmental conservation organization.Recently, it formed a watchdog team to monitorChina-backed Belt and Road Initiative (BRI)projects, together with nearly 20 local civil societyorganizations. In particular, their efforts willfocus on transparency issues, and theenvironmental and social impacts of the projects.The team is preparing to raise awareness amonglocals of China-backed projects that are soon to beimplemented across northern Shan State. TheIrrawaddy spoke with U Aung Myo Htun, projectofficer of the Heartland Foundation in Lashio,about locals’ major concerns regarding the China-backed Muse-Mandalay railway project and itspotential environmental and social impacts, andgrowing Chinese influence in northern ShanState.Your organization and local civil societyorganizations recently set up a watchdog team tomonitor China-backed BRI projects in northernShan state. Can you tell me what your next movewill be?

Northern Shan State lies in the most strategiclocation for Chinese Belt and Road Initiativeprojects. Many crucial projects will beimplemented in our state, especially the Muse-Mandalay Railway and two cross-bordereconomic cooperation zones in Muse andChinshwehaw.We have formed a core team and six workinggroups including about 18 civil societyorganizations across northern Shan State. We willwatch over all the Chinese projects under theChina-Myanmar Economic Corridor (CMEC),which is also a part of the [BRI].We will carefully examine the activities of theprojects, especially transparency issues, locals’concerns, and the environmental and socialimpacts of the projects. Moreover, we will observewhether the projects benefit or harm locals.

Source: The Irrawaddyhttps://www.irrawaddy.com/in-person/interview/myanmar-watchdog-criticizes-called-public-consultation-process-chinas-bri-project.html

NewspapersThe Irrawaddy

02 Dec 2019

PwC | December 2019 19

Can Myanmar’s state-owned banks turn challenges into opportunities?

Myanmar’s state-owned banks (SOBs) arecurrently at a crossroads. Following the opening-up of the banking system, the state-owned bankshave been pushed to catch up with rapidly-growing private banks, many of which haveinvested in technology, digitising operations andexpanding mobile services.Responding to competition, the four state-ownedbanks are taking steps to diversify their loanportfolios, including to accommodate rising loandemand in rural areas, as identified in AMRO’s2019 Annual Consultation Report on Myanmar.The SOBs have also expressed intentions tomodernise and enhance efficiency throughinvestments in staff development and informationtechnology. Limited staff capabilities such as inassessing credit risks as well as outdated bankinginfrastructure have weighed on state-ownedbanks’ financial performance.The reform efforts by state-owned banks areencouraging, but they should aim to respond tothe needs of businesses and households that havelong been neglected by the financial system inMyanmar. Indeed, even as private banks have

expanded rapidly in Myanmar, overall access tofinance remains low. According to a 2017 surveyby the World Bank, only about one in four adultshave access to financial services, with rates evenlower in rural areas. Bank credit is concentratedin construction, trade and services, hindering thevibrant manufacturing sector from moving to ahigher level of development. A meager 7 percentof small and medium-sized enterprises have a lineof credit or loan, and a similar survey by theMinistry of Planning and Finance in 2017 foundthat close to 80pc of the starting capital ofbusinesses was self-funded.It is thus no surprise that the lack of access tocredit has been identified as a major constraint todoing business in Myanmar. These days,financing access is further held back as thebanking system is building up buffers to complywith stricter prudential regulations.

Source: Myanmar Timeshttps://www.mmtimes.com/news/can-myanmars-state-owned-banks-turn-challenges-opportunities.html

NewspapersMyanmar Times

02 Dec 2019

PwC | December 2019 20

Myanmar reduces stamp duty penalties

Myanmar’s parliament has approved a proposalby the Ministry of Planning and Finance tosignificantly reduce existing stamp duty penalties.On November 26, the Law Amending theMyanmar Stamp Act was passed by thePyidaungsu Hluttaw, Myanmar’s UnionParliament.The law lowers the penalties for late or deficientstamp duty payments to three times the payablestamp duty from 10 times before.The Myanmar Stamp Act (1899) states thatcertain instruments, such as lease agreements,should be subject to the payment of stamp dutyon or before the date of execution. Late paymentor non-compliance could result in a fine equal to10 times the payable stamp duty. The last graceperiod for late payments was under Thein Sein’sgovernment in 2015.“This move may help the government to collectfurther tax revenue,” commented Fabian Lorenz,a lawyer with Luther Law Firm in Myanmar.“Businesses should keep in mind that instrumentsnon-properly stamped may not qualify asdeductible expenses during tax assessments,” he

added.The original bill was submitted to parliament inearly November by the Ministry of Planning andFinance.U Maung Maung Win, deputy finance minister atthe time, said the amendment was part of the2017 bill, but was subsequently excluded from theapproved law. “The bill is intended to preventhuge fines and improve the tax-paying culture,”he said.A penalty of 10 times the payable amount can beregarded as hefty in comparison with the stampduty regime in other countries, according to a taxmemo by Pricewaterhouse Coopers reviewed byThe Myanmar Times.In Thailand, failure to pay stamp duties brings afine up to six times the unpaid amount, whileSingapore charges four times, and Malaysia addsa 20 percent fine to the unpaid amount.

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-reduces-stamp-duty-penalties.html

NewspapersMyanmar Times

03 Dec 2019

PwC | December 2019 21

Myanmar’s interventionist trade bill alarms business

Draft legislation revised by Myanmar’s Ministry ofCommerce would require many companies tosubmit to another layer of government approvaland enable ministries to further regulate broadareas of the economy.The lack of clarity and room for governmentintervention in the latest draft trade bill hasalarmed the Yangon corporate community byintroducing more bureaucracy and protectionismin an already difficult business environment. Thebill also appears to be at loggerheads with reformmeasures led by other ministries.“In my view, the drafters of this law have becomeconfused between the idea of promoting trade,which is the object of this law, and the idea ofregulating business, which gives governmentministries extraordinary new powers to regulateall areas of business,” warns Ross Taylor, a lawyerwith Tilleke & Gibbins.“Thus the result of this draft is that it is totallyopposed to the direction of recent governmentthinking and all recent government legislation,which has had the effect of a general and welcomeliberalisation in trade and services.”

If approved, the new law would authorise thegovernment to apply price control measures toproducts determined by them under the pretext of“ensuring national interest,” according to the legaltext seen by The Myanmar Times. No mechanismis given for how this would be implemented otherthan “any price stability measure will aim toensure a proper balance between the publicinterest and business interests.”While the ministry has previously denied it hadany plans to put out a restricted list of retail andwholesale businesses in which foreign companiesare not allowed to invest, businesses fear that thelegislation, if approved, would empower it to issuea list of “trade-related restricted items, prohibiteditems and dual-use items.”

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmars-interventionist-trade-bill-alarms-business.html

NewspapersMyanmar Times

03 Dec 2019

PwC | December 2019 22

Is China dictating Myanmar’s vision for its future –fact or hysteria?

Whenever revisiting the China Belt RoadInitiative and Myanmar MOU signed last yearcovering the newly established China MyanmarEconomic Corridor (CMEC), there is a sense ofDeja-vu in terms of concerns raised. Much of thedebate is driven by media and interest groups thatdo not clearly articulate what their real agenda is.When the original criticism claimed that Chinawas deliberately destabilizing the northern partsof Myanmar currently marred by civil unrest didnot undermine China’s BRI, the criticism has nowshifted to questions as to who is developingMyanmar’s future vision. It is ironic that claimsaround this civil unrest and Rohingya issue led toa reduction in western investment and tourism inMyanmar as USA led sanctions took effect. WithChina gaining a stronger footprint, it is notsurprising that this footprint has led to allegationsof Myanmar’s loss of sovereignty. What is neededis balanced debate and discussion as developingcountries, such as Myanmar, need foreign andtechnical aid if they wish to pursue economic andsocial development agendas.Furthermore, these claims undermine debate

around the real or perceived risks associated ofallowing Chinese participation in keyinfrastructure development within Myanmar andother BRI participants. It can be argued that theBRI should be viewed as a win-win initiative. Bylooking at what participating countries gain,rather than seeing the BRI as a form of predatoryeconomics and geo-political connivance wouldgive balance to the debate and evaluation of therisk profile.Myanmar plays a central role along China’s BRIthat is unsettling to its opponents. Highlightingthis is the USA’s current confused foreignrelations approach to Myanmar as well as India’sKaladana multimodal transport link in RakhineState. What Myanmar must be wary of is gettingcaught in the crossfire.What is not in question is that infrastructureprojects bring sustainable growth.

Source: Mizzima Newshttp://mizzima.com/article/china-dictating-myanmars-vision-its-future-fact-or-hysteria

NewspapersMizzima News

07 Dec 2019

PwC | December 2019

3. Weekly Investment News

23

PwC | December 2019

Weekly Key Investment NewsHeadlines

Singapore Firm to Invest $142 Million in Yangon Mixed-Use Project

Mon State throws open doors for investors in six sectors

Thai Investors Look to Bring Mass Tourism to Myanmar’s Myeik Archipelago

24

Wärtsilä awarded 40MW equipment supply contract for power plant in Myanmar

Hong Kong firm to invest $500 mln in power generation, supply in Yangon, Kyaukpyu

PwC | December 2019 25

Singapore Firm to Invest $142 Million in Yangon Mixed-Use Project

Singapore-based Green Urban Ventures willinvest over $142 million to develop a mixed-useproject in Yangon following the recent approval oftheir investment proposal by the Directorate ofInvestment and Company Administration (DICA).The project represents the second foreign directinvestment into Myanmar this fiscal year.Thailand-based Amata Group’s $300 millionSmart & Eco City was earlier approved by DICA.The Green Urban Ventures development will belocated at the corner of Baho Street, AhloneTownship, Yangon. The construction of thecomplex with residential buildings and offices willtake three years.“This project is not a joint venture but a whollyforeign-owned project under the build-operate-transfer system,” said DICA deputy directorgeneral U Thant Sin Lwin.Thanks to such large-scale projects, foreign directinvestment into the country so far this fiscal yearhas exceeded the year-earlier period by $300million.As of November 15, 25 foreign investmentstotaling $486.282 million have been approved for

the 2020 fiscal year.

Source: Myanmar Business Todayhttps://mmbiztoday.com/singapore-firm-to-invest-142-million-in-yangon-mixed-use-project/

NewspapersMyanmar Business Today

26 Nov 2019

PwC | December 2019 26

Mon State throws open doors for investors in six sectors

The Mon State government is inviting investors toparticipate in six sectors to help boost the state’seconomy.This was announced during the Mon StateInvestment Fair held last Friday and Saturday.The six sectors that the state government hasdecided to focus on are agriculture, fisheries,tourism, trade and logistics, manufacturing andinfrastructure.“We invite local and international organisations toexplore investment opportunities in Mon State,and we will do our best to support them. Thelocation of Mon State means there is strongpotential to leverage on the trade channels withVietnam, Laos, Cambodia, and Thailand. At thesame time, we are working towards supportingtourism development in Mon State, as there aremany beautiful areas to be discovered,” said MonState Chief Minister Dr Aye Zan during the event.Dr. Aye Zan said that Mon State is throwing openits doors for international and local investors toexplore investment opportunities in the sixsectors.“We are seeking local and foreign investment to

develop cold storage and cold chain infrastructurewhich will support the agriculture sector in MonState. We are also seeking companies to invest inpackaging systems and to provide services arounddehydration of fruits and vegetables,” said U HtunHtay, Mon State Minister for Ministry ofAgriculture, Livestock, and Transportation.“Myanmar has resources such as good soil and avariety of climatic zones to grow different crops.However, one of the key areas that needs to beaddressed is inefficient production. Ourrecommendations to overcome this includeintroducing contract farming where agriculturalproduction is carried out according to anagreement between a buyer and farmers; toprovide education to farmers to improve theirproduction level, and to encourage farmers togrow other higher-value crops,” said one of thespeakers at the event Gopikrishana Rengasamy,director for infrastructure and energy withconsultants KPMG Singapore.Source: Myanmar Timeshttps://www.mmtimes.com/news/mon-state-throws-open-doors-investors-six-sectors.html

NewspapersMyanmar Times

02 Dec 2019

PwC | December 2019 27

Thai Investors Look to Bring Mass Tourism to Myanmar’s Myeik Archipelago

Yangon – Business owners from Thailand haveexpressed interest to invest in tourism inKawthaung and the Myeik archipelago, inTanintharyi Region in southern Myanmar,according to Director-General U Thant Sin Lwinof the Directorate of Investment and CompanyAdministration (DICA).“The region has mainly engaged in livestock andmining, and lately, tourism is springing up in theregion. Thai investors are very interested,” saidthe director-general.The region will host an investment forum on Dec.7 in Myeik, where opportunities to invest intourism, fisheries and mining would be presentedto potential domestic and foreign investors, hesaid.A Thai businessman has held talks with DICA andenquired about the potential for operating toursto the Myeik archipelago by plane.“The businessman has asked about how manyislands, hotels and hospitals there are and whatplanes could land. We are making a list,” said UThant Sin Lwin.The investment would be sizable with proposals

to welcome cruise ships and seaplanes acrossTanintharyi Region, he added.Myeik is becoming increasingly popular amongdomestic visitors and is tipped by the Ministry ofHotels and Tourism as the next major touristattraction.The archipelago attracted more than 45,000visitors in 2018 with the ministry expectingnumbers to grow for this year.“Domestic firms can’t operate tour packages thatrequire heavy investment. It is good that Thaibusinesses will fly to the islands. But it would bebetter if Myanmar’s businesses could do it,” UThet Khaing, managing director of MT & KTourism Co, told The Irrawaddy.He, however, said he welcomed foreigninvestment because technological improvementswere needed.

Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/thai-investors-look-to-bring-mass-tourism-to-myanmars-myeik-archipelago.html

NewspapersThe Irrawaddy

04 Dec 2019

PwC | December 2019 28

Wärtsilä awarded 40MW equipment supply contract for power plant in Myanmar

Wärtsilä has been awarded a 40MW equipmentsupply contract for a power plant in Shwe Taung,Myanmar.The MCM Power facility aims to help meet thenation’s increasing energy demand by feedingbaseload power into the national grid andalleviate its ongoing energy shortage.The plant will operate on four natural gas enginesand is expected to become operational in April2020 – its output is planned to be doubled to80MW at a future date.Myanmar’s Ministry of Electricity and Energyexpects peak demand to rise to 4.5GW in 2020from 3.5GW last year, a rise of nearly a quarter.Mr U Aung Hlaing Oo, Managing Director ofMCM Power, said: “MCM is a co-owner in anotherpower plant supplied by Wärtsilä in Myanmar, sowe have very good experience with the efficiencyof the Wärtsilä engines, as well as with thesupport and cooperation that the company hasgiven us.“The levelised cost of energy provided by theWärtsilä solution to Shwe Taung is veryfavourable and the new power plant helps us to

meet the obligations towards Ministry ofElectricity and Energy.”Wärtsilä previously supplied a 145MW powerplant to Kyaukse township in the Mandalayregion of Myanmar.

Source: Consult Myanmarhttps://consult-myanmar.com/2019/12/04/wartsila-awarded-40mw-equipment-supply-contract-for-power-plant-in-myanmar/

NewspapersConsult Myanmar

04 Dec 2019

PwC | December 2019 29

Hong Kong firm to invest $500 mln in power generation, supply in Yangon, Kyaukpyu

A Hong Kong-based company will invest US$500million to execute electricity generation, supply,and sale projects in Yangon and Kyaukpyu cities,said U Thant Sin Lwin, Director-General of theDirectorate of Investment and CompanyAdministration (DICA).Hong Kong-listed CNTIC Vpower Company willinvest $363.070 million in the generation ofelectricity from LNG, and supply and sale ofelectricity on IPP (BOO) basis at the Thakaytapower plant in Yangon Region.Additionally, the company will invest $140.47million in the generation of 150 MW of electricityfrom LNG, and supply and sale of electricity onIPP (BOO) basis in Kyaukpyu Township inRakhine State.The company has not set the period for startingoperations, but it plans to begin as soon aspossible, said U Thant Sin Lwin.At an MIC meeting, the company committed toproviding power supply at the soonest, he said.Hong Kong topped in the list of investors in thefirst two months of the current financial year,pumping in over $1 billion in real estate

development, electricity, and garment businesses,according to data from the DICA.The total foreign direct investment stood at $1.39billion as of 29 November in the current financialyear.

Source: The Global New Light of Myanmarhttps://www.globalnewlightofmyanmar.com/hong-kong-firm-to-invest-500-mln-in-power-generation-supply-in-yangon-kyaukpyu/

NewspapersThe Global New Light of Myanmar

04 Dec 2019

PwC | December 2019

3. Weekly New Tenders

30

PwC | December 2019

No applicable Tenders announced for the week ending 07 Dec 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/ .

31

PwC | December 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

32

WB: Development of the Urban Nature-Based Solutions Rapid Assessment Tool, Closing date: 19 Dec 2019

ADB: LOAN 47152-002 MYA: Irrigated Agriculture Inclusive Development Project, Closing date: 18 Dec 2019

PwC | December 2019

4. MIC Permitted Projects

33

PwC | December 2019

MIC Permitted Projects (Meeting 19, 2019)

34

No. Name of Company Type of Investment Form of Investment

1 Khine Zin Yaw Trading Co., Ltd Farming and production of shrimpMyanmar Citizen Investment

2 San Yang Ni Road Transport Co., LtdOperating and leasing of commercial andoffice building including taxi waiting area.

Myanmar Investment

3 CNTIC VPower YG1 Limited (Permit)Generation of 400 MW electricity from LNG, supply and sale of electricity on IPP (BOO) basis

Wholly Foreign-owned

4 CNTIC VPower KY3 Limited (Permit)Generation of 150 MW electricity from LNG, supply and sale of electricity on IPP (BOO) basis

Wholly Foreign-owned

Source: DICA

PwC | December 2019

5. Upcoming Events

35

PwC | December 2019

Upcoming Events (January 2020) List

Date Location Name of Event Sector Price Focus Points

13-17 Jan YangonMMIX & MMNOG Forum

IT andTechnology

TBC

“MMIX & MMNOG Forum will bringtogether internet business leaders, internetexperts and networking engineers,networking professionals, technicalcommunities, government representatives,network operators, content providers, andetc. This event will provide greatopportunities for peering, interconnectionand advanced technical knowledge, learnfrom workshops and tutorials, attendtechnical presentations, update each otheron their work, share news and updates, andetc.”

29-30 Jan Yangon

International Conference on Economics and Finance Research (ICEFR)

Banking & Finance

TBC

“International Conference on Economics andFinance Research is a prestigious eventorganized with a motivation to provide anexcellent international platform for theacademicians, researchers, engineers,industrial participants and budding studentsaround the world to share their researchfindings with the global experts.”

36

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

© 2019 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 Weekly Business Intelligence Publication

For further information please contact:

Mark RathbonePwC Capital Projects and Infrastructure Leader, Asia+65 6236 4190mark.rathbone@sg.pwc.com

Jennifer TayPartnerCapital Projects & Infrastructure, PwC Singapore +65 8876 9300jennifer.c.tay@sg.pwc.com

37