PwC MyanmarWeekly Business Intelligence

Issue 4603 March 2017

www.pwc.com/mm

PwC | February 2017

1. Weekly Key Financial & Business News

2

PwC | February 2017

Weekly Key Financial & Business NewsHeadlines

Yangon plans deep port

Yoma Partners with German Wholesale Distribution Giant

Vietnamese Firm Wins Planning Ministry Project

Villas to join Ngwe Saung

3

Phone remittances in the pipeline

Agricultural sector and SMEs to receive private bank loans

PwC | February 2017

Weekly Key Financial & Business NewsHeadlines

Mandalay to fulfill clean water demand by 2020

Bago Needs a Hotel Zone in Preparation for Myanmar’s Largest Airport, Say Hoteliers

Fruit and Vegetable Industry Teams Up With Developer to Build Wholesale Market in Mandalay

4

Indian Oil Minister Visits Myanmar as Countries Look to Expand Energy Ties

Budget Ks 32 billion targeted on Yangon outskirts’ development projects

RCEP could be completed by year-end

PwC | February 2017

Weekly Key Financial & Business NewsHeadlines

Thilawa extends to Zone B

KBZ strengthens services with US banks

New management for Mercure Mandalay Hill hotels

5

Mrauk-U airport to be built by tender: minister

Thilawa SEZ success drives Government to expansion

PwC | February 2017

NewspapersEleven Myanmar

Phone remittances in the pipeline

The Central Bank of Myanmar is planning togrant foreign remittance licences, according to itsvice-governor Set Aung.“Like Singapore and Thailand, we plan to grantforeign remittance licences. We have already helddiscussions with the Monetary Authority ofSingapore and the Bank of Thailand on thatmatter. We are working on the implementation ofan inter-remittance system between companies inthe countries. We also plan to implement thecross-border mobile payment system in order thatworkers in Thailand and Singapore can sendremittances home via their mobile phones," SetAung said.Kyaw Win, minister for planning and finance, hasurged entrepreneurs to avoid using the traditional"hundi" system for remittances. The ministryplans to issue remittance licences to private hundiagents and companies, in accord withinternational remittance laws.The central bank is conducting a survey onremittance businesses to control hundi businessessystematically in cooperation with the WorldBank. The ministry said it would cooperate with

the central bank on the issuing of remittancelicences.

Source Eleven Myanmar

http://www.elevenmyanmar.com/business/8074

26 February 2017

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PwC | February 2017

NewspapersEleven Myanmar

Yangon plans deep port

Yangon Region's government is making surveys tobuild a deep seaport, chief minister Phyo MinThein announced on February 25.“The transport network in Yangon Region isimportant. It faces the sea but we cannot makethe use of it. So we are conducting a survey tobuild a deep seaport. All harbours in Yangon areon the Yangon River. Big ships cannot enter theriver. We have to bring cargo via Singapore usingsmaller ships. So transport costs are high. That’swhy we want to build a deep seaport,” said thechief minister.A deep seaport, an economic zone and a new townnext to Kyimyintine Township would bedeveloped, he added.

Source Eleven Myanmar

http://www.elevenmyanmar.com/local/8080

26 February 2017

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PwC | February 2017

NewspapersIrrawaddy

Yoma Partners with German Wholesale Distribution Giant

Yoma Strategic Holdings has partnered with theGerman wholesale and retail giant METRO tocreate a wholesale distribution platform inBurma, the company announced on Feb. 24.Yoma will hold a 15 percent stake in a new entitytitled METRO Wholesale Myanmar, while theremaining 85 percent will be held by the Germanmultinational, which operates in 35 countries andachieved sales of around US$37 billion in 2015-6.“METRO Myanmar will leverage on METRO’sprocurement capabilities and Yoma Strategic’sexisting logistics, warehousing and fleet leasingbusinesses to fast track its growth,” according to aYoma statement.Yoma Strategic’s chief executive officer MelvynPun said: “We are confident that our partnershipwith METRO will bring global know-how inmodern wholesale distribution and contribute tobringing reliable and safe food to the people ofMyanmar.”Currently local businesses in Burma have tosource products through a complex mix ofsuppliers and importers.Under the new venture more than 3,300 food and

non-food items will be offered to customers likesmall retailers, offices, restaurants and hotelsthrough a one-stop shop wholesale distributionsystem, according to the statement.

Source Irrawaddy

https://www.irrawaddy.com/business/yoma-partners-german-wholesale-distribution-giant.html

28 February 2017

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PwC | February 2017

NewspapersIrrawaddy

Vietnamese Firm Wins Planning Ministry Project

A Vietnamese firm has won the bid for a project tohelp upgrade Burma’s public finance system.FPT group will implement the US$11.3 millionWorld Bank-funded project to install pre-fabricated data center facilities in Naypyidaw andRangoon for the Ministry of Planning andFinance.The Vietnamese conglomerate beat 12 rivals fromChina, India, Singapore, Malaysia, and Burma towin the bid, according to the Vietnamnet Bridgenews website.The Hanoi-based multinational company is one ofVietnam’s leading information technology firmswith a presence in 21 countries and more than28,000 employees, according to its website.It has already implemented projects in Burmaincluding the national financial switching systemfor Myanmar Payment Union, the country’snational trade portal, and software systems forthe United Paints Group in Burma.FPT is also the first foreign firm to receive alicense to operate in the network facilities servicesegment in Burma, according to the report.Burma is second only to Bangladesh as the

company’s top developing market, the reportadded..

Source Irrawaddy

https://www.irrawaddy.com/business/vietnamese-firm-wins-planning-ministry-project.html

28 February 2017

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PwC | February 2017

NewspapersMyanmar Times

Villas to join Ngwe Saung

Ngwe Saung beach has seen an addition in itstourism industry. Having visited the beach resortarea and been impressed by the scenery on offer,iGreen Construction Co decided to launch a villa-development project along the beach, targetingfamilies visiting the area. The La Villa housingproject focuses on people who want to have aretreat with their families at the beach overholidays and weekends, hence the word “villa”,stressing the nature of the project – buildinghouses along the long-stretch of the beach locatedwest of Pathein in Ayeyarwady Region.“Ngwe Saung is one of the beautiful beaches inMyanmar. But there is still a need to increase tonumber of hotels and the supply of housing at thesame time.“With this in mind, we began to explore thepossibility of real estate developments in NgweSaung. In the end, we decided to develop the LaVilla project there,” Ko Kyaw Kyaw Naing, thefirm’s director, explained.The company applied to the regional governmentunder the previous administration in the fiscalyear 2015-16 for permission to construct the

housing projects. The current government hasgreen-lighted the proposal.The 68-acre project site covers the hills in thewest of Ngwe Saung hotel zone near the famousLover Island.“In Ngwe Saung, there are only two public areasavailable for beach-goers because the hotels arejust a few metres away from the beach. Thisreduces the area of public space for visitors.“In other countries, hotels are built in a locationfarther away from the beach, so beach-goers canenjoy.

Source Myanmar Times

http://www.mmtimes.com/index.php/business/25127-villas-to-join-ngwe-saung.html

28 february 2017

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PwC | February 2017

NewspapersMyanmar Times

Agricultural sector and SMEs to receive private bank loans

The Central Bank of Myanmar will make itcompulsory for local private banks to grant aminimum percentage of their loans to theagricultural sector and the small and medium-sized enterprises (SMEs) sector, Central Bankdirector general U Win Thaw told the MyanmarTimes.During a meeting held by the Private SectorDevelopment Committee (PSDC), members of theagricultural and SMEs sectors raised the issuethat private banks do not issue loans for eithersector. The members added that if Myanmar’seconomy is to develop, the country’s SMEs andagriculture will need to take off and grow. Loansare vital for their growth.Therefore, officials from the Ministry of Planningand Finance, the Central Bank and the Ministry ofCommerce decided that a requirement has to beestablished for private banks to grant loans to thetwo sectors, said U Win Thaw, who is also the vicechair of the PSDC. It is understood that privatebanks must dedicate a minimum percentage oftheir commercial loans to agriculture and SMEssectors.

“Private banks must grant a specified [minimum]percentage of their loans to farmers and SMEs.“At the same time, the loan interest rate will beallowed to be more than 13 percent, depending onindividual applications. This is because privatebanks will be badly hit by loan failures. It is notrealistic to have those banks lending withoutcollateral and with a low interest rate,” U WinThaw explained.

Source Myanmar Times

http://www.mmtimes.com/index.php/business/http://www.mmtimes.com/index.php/business/25141-agricultural-sector-and-smes-to-receive-private-bank-loans.html

01 March 2017

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PwC | February 2017

NewspapersMyanmar Times

Mandalay to fulfill clean water demand by 2020

The Tatmadaw recently discovered that jadeMandalay City Development Committee’s Waterand Sanitation Department has kicked off a planto supply 100 percent of the demand for drinkingwater to all seven townships within the district by2020.Currently, clean potable water supply inMandalay is only available in five townships inMandalay.In Aung Myay Tharzan, Chan Aye Tharzan, MahaAung Myay and Chan Mya Tharsi, clean drinkingwater currently only meets 70pc of the demand,while Pyigyitagun township is only receiving 5pcof its drinking water supply, said Daw Khin MayHtay, Head of the Water and SanitationDepartment.She said groundwater testing has been conductedin the Amarapura township with assistance fromthe French Development Agency.“At present, only 70pc of water demand can besupplied to four downtown townships. We aim tobe able to supply 100pc of the requirement by2020.“We will obtain loans from French Development

Agency, Asia Development Bank and JapanInternational Cooperation Agency to dig artesianwells. We are now building pumping stations andlaying underground pipes,” Daw Khin May Htaytold The Myanmar Times.Pumping station construction and undergroundpipe-laying have just started in the southernPyigyitagun and Amarapura townships.When the water supply project for Mandalaybegan in 1983, it targeted only 25 square milesbut the area has since been widened to 65 squaremiles, and thus 49 pumping stations are nowbeing used.The main water pipeline is 30.6 kilometres longand the underground pipeline is 363.93km long,according to the Water and SanitationDepartment.

Source Myanmar Times

http://www.mmtimes.com/index.php/national-news/mandalay-upper-myanmar/25136-mandalay-to-fulfill-clean-water-demand-by-2020.html

01 March 2017

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PwC | February 2017

NewspapersMyanmar Business Today Bago Needs a Hotel Zone in Preparation for

Myanmar’s Largest Airport, Say Hoteliers

The Bago Hoteliers Association has submitted aproposal to the regional cabinet for the creation ofa hotel zone ahead of the opening of the proposedHanthawaddy airport, slated for completion in2022.Without an increase in supply, Bago region’s ho-tels wouldn’t be able to match the rise in demandexpected with the opening of what will beMyanmar’s largest airport.There are 20 licensed hotels and 40 licensedguesthouses with a capacity of roughly 1,000rooms operating in the region, while four newhotel projects are underway.“We are closely watching the Hanthawaddyairport project. Bago’s existing supply of hotelrooms won’t be enough to meet demand if theHanthawaddy project goes ahead,” U San Lwin,chairman of Myanmar Hoteliers Association, toldMyanmar Business Today. “Now we are asking forapproval from regional government and searchingfor an appropriate land area,”An initial proposal for a hotel zone was submittedto the Bago regional government in August 2016but the project only got as far as the preliminary

land surveying stage.Local hoteliers have said they require between 30to 50 acres for small and medium sized hotelswhile larger developments involving upper-scaleforeign hotel brands might need more than 100acres.A consortium of investors-JGC Corporation,Yongnam Holdings and Changi Airports Inter-national- won a tender to build and operate theHanthawaddy airport project in 2014.

Source Myanmar Business Today

http://www.mmbiztoday.com/articles/bago-needs-hotel-zone-preparation-myanmar-s-largest-airport-say-hoteliers

01 March 2017

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PwC | February 2017

NewspapersMyanmar Business Today Fruit and Vegetable Industry Teams Up With

Developer to Build Wholesale Market in Mandalay

Developers in Mandalay are planning to build acommodity exchange centre for businessestrading in fruit, flowers and vegetables. Localcompany Shwe Moe Group is behind the plans,and will receive with help from the MyanmarFruit, Flower and Vegetable Producer andExporter Association (MFFVPEA).The project aims to group all of Mandalay’svendors and wholesalers of fruit, flowers andvegetables in one place to ease waste managementissues, traffic jams and to create better pricecontrol and job opportunities for locals.“We started measuring the land last month but atthis stage it is too early to put a date on buildingcompletion,” said U Kyaw Thu, secretary of theMFF-PVPEA. The three story building, located inMandalay’s Amarapura township, will includemodern storage, car parking, wholesale space and100 residential apartments, said U Kyaw Thu.“It was originally expected that cool storage wouldbe added in phase one of the project, but actually,cool storage will be added in phase two,” said UKyaw Thu.

Source Myanmar Business Today

http://www.mmbiztoday.com/articles/fruit-and-vegetable-industry-teams-developer-build-wholesale-market-mandalay

01 March 2017

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PwC | February 2017

NewspapersEleven Myanmar

Money transfer can be smoothly made between Myanmar and US

Money transfers to the United States can now bemade by opening a Settlement Account at KBZBank.Improved trade financing and easier cashtransfers are expected as KBZ Bank Ltd joinshands with Sumitomo Mitsui BankingCorporation (SMBC-NY). KBZ customers can savetime when they make money transfers and theycan receive 24-hour service on money transfers toSMBC-NY.In the past, a transfer made by SettlementAccount after 3pm would be dated one daybehind.Now, the KBZ has managed to reduce confusingsteps and money payment activities will besynchronized.“We are delighted to launch the USD SettlementAccount service than can accelerate the financialflow between Myanmar and the US. The KBZ isallowed to open USD Settlement Account for thefirst Myanmar banking group,” Win Lwin, themanaging director of KBZ’s international bankingdepartment, said.“The KBZ is trying to provide innovative financial

services in Myanmar. Now customers can makemoney transfers in a smooth and faster way at arate more reasonable between Myanmar and theUS,” Win Lwin said.Myanmar and the US signed the MoU on bankingcooperation in 2012.

Source Eleven Myanmar

http://www.elevenmyanmar.com/business/8130

01 March 2017

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PwC | February 2017

NewspapersMyanmar Business Today Indian Oil Minister Visits Myanmar as Countries

Look to Expand Energy Ties

India plans to sell refined crude oil products toMyanmar as part of New Delhi's efforts to deepenties with its eastern neighbour, which is expectedto see strong demand for fuels as it builds newroads, factories, utilities and airports.Indian oil minister Dharmendra Pradhan began afive-day trip to Myanmar last week, scouting foropportunities in oil exploration, refining andproducts retailing.Prime Minister Narendra Modi wants to expandties with the country's eastern neighboursincluding Myanmar to develop its landlockednortheastern states.Pradhan was also expected to discuss laying fueland gas pipelines linking India's northeasternstates with Myanmar.The Indian oil minister's trip comes months afterMyanmar leader Aung San Suu Kyi visited NewDelhi, courting investments in sectors left indisarray under nearly 50 years of a military dicta-torship.A sweeping electoral victory for Suu Kyi's party in2015 paved the way for the lifting of US sanctionsagainst her country last year.

Numaligarh refinery Ltd (NRL), a unit of India'sstate-run Bharat Petroleum Corp, is looking atselling gasoil into northwest Myanmar, its man-aging director said."Initially it will be a small quantity. We will lookfor a long-term contract for diesel exports afterexpansion of our refinery, " Padmanabhan toldReuters.NRL plans to treble its refining capacity to180,000 barrels per day in four to five years.Myanmar's refined fuels consumption isestimated to rise at an average annual rate of 6percent over the next 10 years to 2026, BMIResearch, a unit of credit ratings agency FitchGroup, said in January.

Source Myanmar Business Today

http://www.mmbiztoday.com/articles/indian-oil-minister-visits-myanmar-countries-look-expand-energy-ties

02 March 2017

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PwC | February 2017

NewspapersMyanmar Times

RCEP could be completed by year-end

The negotiation of ASEAN-led RegionalComprehensive Economic Partnership (RCEP)has been accelerated to ensure that the world’slargest economic block would be completed by theyear-end.“Every member has to increase their political willin order to overcome all challenges related totrade facilitation, non-tariff barrier and rule oforigin,” said Dr Rebecca Sta Maria, Senior PolicyFellow, Economic Research Institute for ASEANand East Asia (ERIA). The Jakarta-based thinktank advised the ASEAN Secretariat on economicmatters pertaining to the ASEAN plus eightprocesses.In an exclusive interview with The MyanmarTimes, Rebecca said that all parties concerned areupbeat with the ongoing RCEP negotiation.“It is the only game in town, given the currentsituation of the TPP,” she said.Rebecca, a former senior Malaysian economicofficial, was referring to the Trans-PacificPartnership, a high-end free trade agreement withthe US, which Washington was leadingpreviously. After President Donald Trump took

up his presidency last month, he ordered the USto pull out of the TPP. Now its future is in limbo.There are four ASEAN members that joined theTPP — Malaysia, Singapore, Brunei and Vietnam.The RCEP is an ASEAN-led economic frameworkmapped out to engage the dialogue partnerswithin the framework of ASEAN plus eight. Apartfrom the 10-member ASEAN, the remaining eightmembers are Japan, China, South Korea, NewZealand, Australia and India.RCEP has a more holistic approach to free tradeagreement because it contains many rules andmeasures to assist less developed countries,especially among the new ASEAN members.At the moment, the RCEP leading economies suchas China and Japan are discussing what would bethe final framework. The framework representsalmost half of the world’s population, almost 30per cent of global GDP and over a quarter ofworld exports.

Source Myanmar Times

http://www.mmtimes.com/index.php/business/25157-rcep-could-be-completed-by-year-end.html

02 March 2017

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PwC | February 2017

NewspapersEleven Myanmar

Budget Ks 32 billion targeted on Ygn outskirts’ development projects

Yangon plans to spend Ks 32 billion on thedevelopment of 12 townships on the outskirts ofYangon Municipal area, according to Phyo MinThein, Yangon Region Chief Minister.Phyo Min Thein posted a video record of YangonRegion Government’s plans.“ For development of the Yangon Region, westrive to ensure smooth transportation access.Twelve townships situated in the Yangonoutskirts are the least developed. That’s why wetargeted a budget of Ks 32 billion that will be usedfor development [in these areas] as a specialproject,” said Phyo Min Thein.“ Although flooding has occurred across Myanmarin previous years, we prevented the flood ofNgamoeyeik Creek situated at the entrance ofYangon Region. So, flooding decreased in theHlegue and Dagomyothit Townships along theembankment of Ngamoeyeik Creek. But, Taikgyiand Hmabwe Townships suffered floodingbecause of the Ayeyawady River. We already planto spend about Ks 8 billion to prevent floodingfrom the Hlaing and Ayeyawady Rivers,” he said.He also said that the electricity sector played a

vital role in attracting foreign investment. Theywill also carry out the power generating anddistribution as well as linking the power cables.As well, he said, staff from the Electric PowerEnterprise have systematically cleared thetangled wires linking houses and lamp-posts andthe Yangon Region Government was striving tocomplete other issues within one-year of takingoffice.

Source Eleven Myanmar

http://www.elevenmyanmar.com/local/8145

2 March 2017

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PwC | February 2017

NewspapersMyanmar Times

Thilawa extends to Zone B

The Thilawa Special Economic Zone (SEZ),involving more than US$ 1 billion investment, willbe extended to Zone B and construction ofinfrastructures will be completed by mid-2018,SEZ Management Committee Chair U Set Aungtold the media.Total FDI in Zone A has amounted to US$1055million and the zone is now 95% occupied. Inorder to complement the development of the firstzone, Myanmar Japan Thilawa SEZ DevelopmentCo initiated Phase I of the second zone,encompassing 101 hectares out of 2000 hectaresof the entire zone.The construction of the second zone took placeafter 3 years (35 months) following the launch ofZone A.“The construction of Zone B will take about oneand half years. But before the completion of theconstruction, we will start accepting investors.Those investors can begin their factoryconstruction only after the completion of thisinfrastructure project,” Committee chair U SetAung said.Thilawa SEZ was initiated with the support of

Myanmar and Japanese governments. Companiesfrom a total of 16 countries and regions, such asJapan, China, Hong Kong, Taiwan, the US andAustralia, invested in Zone A covering 405hectares since 2014.Since the beginning of the project, 79 firms havedecided to locate their factories, production linesor logistics hubs in the zone. At present, thecumulative investment is US$1055 million. 24companies have already started their operationsin the SEZ.Two 25-megawatt (one million watts) gas turbinesin Thanlyin built as part of the government’sscheme will supply electricity to Thilawa SEZ,according to SEZ Management Committee joint-secretary Daw Than Than Thwe.“Currently, one 25-MW gas turbine is running. 14MW is supplied to Thilawa and the rest [11 MW]is put into the national main grid,” she said.

Source Myanmar Timeshttp://www.mmtimes.com/index.php/business/25156-thilawa-extends-to-zone-b.html

02 March 2017

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PwC | February 2017

NewspapersMyanmar Times

KBZ strengthens services with US banks

After kicking off the US-Myanmar direct moneytransfer service, Kanbawza Bank (KBZ) has triedto establish a direct channel with US banks, KBZmanaging director U Win Lwin told the media.KBZ has opened a USD settlement account inNew York’s branch of Sumitomo Mitsui BankingCorporation. Kaung Htet / The MyanmarTimesKBZ has opened a USD settlement accountin New York’s branch of Sumitomo MitsuiBanking Corporation. Kaung Htet / The MyanmarTimesRight now, KBZ has opened a USD settlementaccount in New York’s branch of SumitomoMitsui Banking Corporation (SMBC). Hence,direct money transfer service for bilateral tradebetween the United States and Myanmar has beenavailable starting from February 16, he told theMyanmar Times.In order to provide better services to the businesscommunity, KBZ is in the process of establishinga direct connection with US banks, he said at apress conference on February 27.US sanctions against Myanmar began in 1998.Since then, direct money transfer to the US has

not been allowed, and transfer had to passthrough buffer countries or regions. Last May, itwas announced that US sanctions againstMyanmar were lifted. Direct money transfers,which had been banned for 18 years, becameavailable again.“A service, which used to be very, very difficultbefore, will now be provided to business personsvery conveniently.Previously it took a lot of time to transfer moneyto the US because it [money] had to pass throughbuffer countries, but now that service will enable… transfers within a day. At present, we are onlyconnected to New York’s branch of the SMBC.Later, we will try to directly connect with USdomestic banks,” U Win Lwin said.Money transfers are mostly made through majortrade partners such as Singapore, Thailand, India,China and Malaysia.

Source Myanmar Timeshttp://www.mmtimes.com/index.php/business/25176-kbz-strengthens-services-with-us-banks.html

03 March 2017

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PwC | February 2017

NewspapersMyanmar Times

New management for Mercure Mandalay Hill hotels

LP Holding Co., Ltd has signed a managementagreement which will see French multinationalhotel group AccorHotels take over themanagement of Mercure Mandalay Hill Resort,Mandalay Hill MGallery by Sofitel and PullmanYangon Centrepoint at the Mandalay Hill ResortHotel.Mandalay Hill Resort Hotel, situated at the foot ofMandalay Hill, is one of the leading hotels inMandalay and will return to the AccorHotels foldas Mercure Mandalay Hill Resort Hotel. Inaddition, a new hotel, the Mandalay Hill MGalleryby Sofitel, will be built to adjoin to the MercureMandalay Hill Resort, while Centrepoint GrandHotel Yangon will be rebranded as PullmanYangon Centrepoint.“Today’s announcement represents a significantpartnership with AccorHotels and combines theexpertise of a truly global hospitality companywith strong local market expertise.“Myanmar is one of the most sought-afterdestinations in Southeast Asia since lifting ofsanctions,” said Lertsak Nopburanand, director ofLP Holding Co.,Ltd.

The Mandalay Hill Resort opened in 1995 underAccor’s global brand Novotel. After EU sanctionswere imposed in 2002, Accor relinquished bothNovotel Mandalay and Sofitel Project Yangon.The Novotel Mandalay hotel then came under themanagement of its owners, LP Holding Co.,Ltd, asthe Mandalay Hill Resort Hotel.

The Mercure Mandalay Hill Resort is set in 11acres of garden and boasts some 206 rooms withrestaurants and bars, conference room, banquetcentre, spa and fitness centre.The hotel offers a spectacular view of MandalayHill, the Royal Palace, the famous AyeyarwadyRiver and the city of Mandalay, once the RoyalCapital of Myanmar.

Source Myanmar Times

http://www.mmtimes.com/index.php/national-news/mandalay-upper-myanmar/25174-new-management-for-mercure-mandalay-hill-hotels.html

03 March 2017

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PwC | February 2017

NewspapersMyanmar Times

Mrauk-U airport to be built by tender: minister

The Rakhine State government will invite tendersfor the construction of an airport in Mrauk-U, UKyaw Aye Thein, state Planning and FinanceMinister said.He told The Myanmar Times that the decision toput the airport project out to tender was due toinsufficient funds in the state’s budget whichallocated K2 billion a year for the project.Work on the airport started in 2015 but it wouldtake another 10 more years if the governmentrelied solely on state funds to build it, he said.“We can only spend K2 billion a year on theairport construction. Actually we need K26 billionto complete the whole project, that’s why wedecided to tender it out to companies that want toundertake the project,” said U Kyaw Aye Thein.“The airport can be completed in three years if itis undertaken by the tender winner. It will boosttourism and the economy in Mrauk-U region,” headded.Mrauk-U is currently accessible by river and roadvia Sittwe.U Kyaw Aye Thein also said the location of airportwill be away from the ancient archaeological zone.

The airport site is about 10 kilometres fromMrauk-U, between the town and Minbya besidethe Sittwe-Yangon highway.“It is out of ancient archaeological zone,” he said.There are more than 1500 historical pagodas,some more than 800 years old, in the ancient cityof Mrauk-U and the government is bidding forUNESCO world heritage status for the templezone.Hoteliers, meanwhile, support the move to buildan airport soon in Mrauk-U, and said it woulddevelop the tourism industry and improve thelives of the local population.

Source Myanmar Times

http://www.mmtimes.com/index.php/national-news/25172-mrauk-u-airport-to-be-built-by-tender-minister.html

03 March 2017

22

PwC | February 2017

NewspapersEleven Myanmar

Thilawa SEZ success drives Govt to expansion

MORE THAN three years after the start of theJapan-backed Thilawa special economic zone,Myanmar launched the development of its secondzone in the presence of dignitaries from bothnations including Vice President Henry Van Thio.Set Aung, deputy governor of the Central Bankand chairman of the Thilawa SEZ ManagementCommittee, said that the existing 405 hectare(2531 rai) of zone A would be supplemented bythe first phase of the new zone, expanding 101hectares to the south.He believes that the SEZ’s success has led to theexpansion, given the arising interest from foreigninvestors. To date, the total investment in ThilawaSEZ has reached US$1.05 billion (Bt36.6 billion),as 78 firms from 16 nations have opted to locatetheir factories, production or logistics facilitiesthere. According to Set Aung, 24 of them havestarted operations, and 77 per cent of the labouremployed are from nearby townships (Thanlyinand Kyauk Tan) and had not completed basiceducation.He said that nearly half of the production in theSEZ went to domestic consumption, while theremaining products were exported to other

countries.

“Some companies directly export to end marketssuch as the United States and Japan. Some semi-finish products here and export to the countrieswhere production will be finalised, for exampleelectronic goods,” he said.“Thilawa’s appeal to investors has already made itthe busiest industrial area of its kind in Asean.Zone B will open an exciting new chapter in thisgreat success story of Myanmar,” he added.Located just 23 kilometres to the southeast of thenation’s commercial hub Yangon, the SEZ offersthe best infrastructure, the most efficientgovernment procedures and the highest practicesin pollution control. As a result, 95 per cent ofzone A has been occupied, according to itsdeveloper, Myanmar Japan Thilawa DevelopmentLtd.

Source Eleven Myanmar

http://www.elevenmyanmar.com/business/8148

03 March 2017

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PwC | February 2017

2. Weekly Investment News

24

PwC | February 2017

Weekly Key Investment NewsHeadlines

Thailand Set to Lend Myanmar $128m to Build Road From Dawei SEZ to Border

Parliament approves German loan for locomotives project

16

PwC | February 2017

NewspapersEleven Myanmar

Parliament approves German loan for locomotives project

Yesterday Parliament approved the Ministry ofTransport and Communications proposal to takeout a Euro 5 million loan from the KFW known asGerman Government-owned Development Bankto upgrade the Locomotive Shed (Ywahtaung)under the Myanmar Railways (MR).Transport and Communications Minister ThantZin Maung submitted the proposal to the UnionParliament on February 17.The project’s objectives are the renovation theGerman made Locomotives running on theMandalay-Myitkyina Railroad, to installation theUniversal Wheel Lathe, major renovations tocoaches and wagons, upgrading the TechnicalHigh School, capacity building training of staffsfor the emergence of skillful and qualified humanresources.3.25 of the loan will be used for the renovation ofseven locomotives and the purchase of aUniversal Wheel Lathe, and 1 million will be usedfor the lathe’s maintenance.Moreover, a quarter million of the loan will bespent on the purchase of supporting equipmentfor Railways Technical Training School

(Ywahtaung) and fees for the State leaders.The interest rate of the loan is 0.75 per cent peryear and the suspension period is 10 years. Theloan must be paid back within 30 years.

Source : Eleven Myanmar

http://www.elevenmyanmar.com/business/8109

28 February 2017

26

PwC | February 2017

NewspapersMyanmar Business Today

Thailand Set to Lend Myanmar $128m to Build Road From Dawei SEZ to Border

Thailand is due to lend Myanmar $128 million tobuild a road from the Dawei Special EconomicZone to a town across the Thai border, accordingto a minister.Thai Transport Minister Arkhom Termpittayapa-isith said Myanmar representatives agreed to theloan at a joint committee meeting of the SEZ lastmonth, according to the Bangkok Post.The proposed road would be 132km long with twolanes, and cost around K175 billion in localcurrency. It would end at Ban Phu Nam Ron inThailand’s Kanchanaburi district.The loan would have an interest rate of 0.1% andbe repayable within 20 years."The Myanmar government has green-lighted thisproject because it is seen as a key mechanism tobolster the Myanmar economy especially throughtrade and investment promotion as well as jobcreation and income generation," Mr Arkhom toldthe Bangkok Post.Thailand’s Neighbouring Countries EconomicDevelopment Cooperation Agency is studying thedetails of the loan project and will announce itsconclusions in March, the minister said.The Agency will also decide when to go ahead

with a port and a power plant at the SEZ when itmeets to announce its decision on the loan. Theport and plant are due to be built by the Italian-Thai Development conglomerate.The Dawei SEZ is due to be Southeast Asia’s larg-est but has faced numerous delays.

Source : Myanmar Business Today

http://www.mmtimes.com/index.php/business/25035-the-peninsula-to-arrive-in-yangon.html

01 March 2017

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PwC | February 2017

3. Weekly New Tenders

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PwC | February 2017

Tenders (Myanmar Government)List

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

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Invitation for Pre-qualification for Design, Build and Operate (DBO) of Mandalay’s NankadLake Waste Water Treatment Plant. Closing Date: 28 April 2017.

Expression of Interest in Provision of Consulting Services to Verify the Network Performance of Mobile Operators Network. Closing Date: 8 Mar 2017

Invitation for Bids for Supply of Solar PV System for National Electrification Project Closing Date: 8 Mar 2017

PwC | February 2017

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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Guideline on Climate and Natural Disaster Resilience in Urban Rail Projects, Closing date : 13-Mar-2017

Learning Partner for the Pilot Program on Climate Resilience (PPCR) in the Climate Investment Funds, Closing date - 10-Mar-2017

PwC | February 2017

4. MIC Permitted Projects

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PwC | February 2017

MIC Permitted Projects (Meeting 2, 2017)

No. Name of Company Type of Investment Form of Investment

1 G & U (Myanmar) Fashion Company Limited (China) Manufacturing of Garment on CMP Basis

Wholly Foreign Owned

2 Shyang Peng Cheng Company Limited (Samoa)Manufacturing of Varieties of Shoes on CMP Basis

Wholly Foreign Owned

3 Dongwon M House Company Limited (Korea) Manufacturing of Upper Part of Shoes on CMP Basis

Wholly Foreign Owned

4 CMI Engineering Company Limited (Singapore)Manufacturing and Marketing of Polybag and Related Products Such as Elastic Band

Joint Venture

5Jia Long Plastic Products (Myanmar) Company Limited (China)

Processing, Production and Sale of Parboiled Rice, High Quality White Rice and Rice Products with B.O.T system

Joint Venture

6 Myanmar National Tele & Communications Co., Ltd. Nationwide Telecommunications Network and Services

Joint Venture

7 Ga Mone Pwint Co., Ltd. Leasing of Shopping Mall, Office Towers and Hotel on BOP System

Myanmar Investment

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PwC | February 2017

5. Upcoming Events

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PwC | February 2017

Upcoming Events (February 2017 to November 2017) List

Date Location Name of Event Sector Price Focus Points

29-31 Mar 2017 Yangon Myanmar Infrastructure Summit Infrastructure

TBC

Event to gain knowledge about Myanmar government’s immediate priority concerning with improving infrastructure

29 March 2017 YangonMyanmar Supply Chain Summit

Supply Chain & Logistics

$200

Event to gain knowledge and effective techniques to grow your supply chain, manufacturing, logistics and distribution capabilities in Myanmar.

30-31 May 2017 Yangon

Emerging Asia FinTech& Agent Banking Summit

Finance TBCDiscuss on the financial landscape transformation of Myanmar.

6-7 July 2017 Yangon ASEAN Ports & ShippingPorts & Shipping

$1268Will covers areas of logistics & transportation.

18-19 Oct 2017 Yangon Oil & Gas Myanmar Oil & Gas FreeOpportunities and difficulties facing in Myanmar Oil & Gas Industry as it embarks on its exciting new phase of growth.

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© 2017 PricewaterhouseCoopers Myanmar Co Ltd. All rights reserved. In this

document, “PwC” refers to PricewaterhouseCoopers Myanmar Co Ltd, which is

part of the network of member firms of PricewaterhouseCoopers International

Limited, each of which is a separate and independent legal entity.

www.pwc.com/mm

PwC Myanmar Business Intelligence Publication

For further information please contact:

Jovi SeetSenior Executive Directorjovi.seet@sg.pwc.com

Brandon LyeDirectorbrandon.lye@sg.pwc.com

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