PwC MyanmarWeekly Business Intelligence

Issue 19801 February 2020

www.pwc.com/mm

PwC | February 2020

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PwC | February 2020

1. Weekly Key Financial & Business News

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PwC | February 2020

Weekly Key Financial & Business NewsHeadlines

Mon State a sweet spot for maritime trade, tourism: Picon-Deed

Insurance association to introduce CII qualifications

More factories complete EU’s chemical management programme

Work on large LNG project in Ayeyarwady set to start in July

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Myanmar aviation sector expected to become profitable, but more pain ahead first

PwC | February 2020

Weekly Key Financial & Business NewsHeadlines

Yangon’s New City development project initiates ‘Swiss challenge’

Good prospects in Myanmar for long-term investors: Oxford Business Group report

Business groups voice opposition to Myanmar govt′s car plan

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Security upgrade on the cards for Myanmar’s digital payments

Chin opens yam processing plant in first major investment

PwC | February 2020 6

Myanmar aviation sector expected to become profitable, but more pain ahead first

Myanmar’s aviation industry is betting on a moreprofitable future with the number of airlines nowreduced to half compared to 2017 and demand fordomestic air travel expected to catch up withsupply. However, they will have to swallow morelosses in the short term before things get better.There are currently five airlines in Myanmar,down from ten three years ago. But even thoughthere are fewer players now in the market, thevolume of passengers flying domestic remainsbelow three million, according to governmentdata.At those levels, demand is not sufficient to coverthe industry’s losses, U Kyaw Nyein, CEO ofGolden Myanmar Airlines (GMA), told TheMyanmar Times in a recent interview.But profitability is possible in the years ahead,making it a good time for the remaining airlines toaccelerate their plans for expansion to capitaliseon future demand, according to a 2019 report bythe Centre for Asia Pacific Aviation.Last year, GMA took delivery of a new aircraft,taking its current fleet of ATR-72s to three. “Withthe additional seats, we can now fly daily

compared to alternate days before. We will alsoextend our destinations to include more flights toDawei and Kaw Thaung, which could be potentialtourist attractions in the future,” U Kyaw Nyein.Air KBZ has also been expanding. Last year, itupgraded its fleet of planes and announced newdestinations to Dawei , Kaw Thaung , Myeik,Sittwe, Kyaingtong, Hkamti and Loikaw. its sisterairline, Myanmar Airways International, added anew Airbus A319 to its fleet, expanding itscapacity by 144 passengers.Tanes Kumar, commercial director for Air KBZ,said even though the new routes are not yetprofitable, the main aim of adding newdestinations is to expand the airline’s networkand connectivity. “This gives passengers moreoptions and allows employees to learn new skillsfor more expansion in the future,” he said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-aviation-sector-expected-become-profitable-more-pain-ahead-first.html

NewspapersMyanmar Times

27 Jan 2020

PwC | February 2020 7

Insurance association to introduce CII qualifications

The Myanmar Insurance Association (MIA) is setto introduce qualification programmes of the UK’sChartered Insurance Institute (CII) to Myanmar.The two industry bodies inked a deal late last yearfor MIA to hold exams for CII qualifications fromApril onwards.CII exams are held twice every year in April andOctober. Candidates in Myanmar no longer needto travel abroad for the CII examinations and cannow enrol and sit for the assessment within thecountry.A key challenge for Myanmar’s insurance sectorsince the November 2019 liberalisation is the lackof qualified professionals to support the fast-expanding operations of the multinationalinsurers and joint ventures.U Aung San from MIA said those working in thenascent industry can pursue CII qualifications inYangon and elsewhere within the country,marking a significant step in capacity building andeducation for the sector.“The CII is one of the top insurance instituteswith more than 120 years history ofestablishment. Its qualifications are highly

recognised internationally.“If we have many qualified and professionallycompetent people in the industry it will definitelycontribute towards improving the quality andservice of insurance companies as well as otherinsurance related services,” he told thisnewspaper.The capacity of insurance professionals is severelylimited because insurance in Myanmar is still inits early stages of development. Until two monthsago, no foreign insurers can operate in Myanmar,except the three Japanese providers who weregiven licences in Thilawa Special Economic Zone,in southern Yangon.For the industry to grow, companies needinsurance agents across the country, in majorcities as well as in rural areas, to promote andreach out to communities. Myanmar’s insurancepenetration is among the lowest in the world.

Source: Myanmar Timeshttps://www.mmtimes.com/news/insurance-association-introduce-cii-qualifications.html

NewspapersMyanmar Times

27 Jan 2020

PwC | February 2020 8

Mon State a sweet spot for maritime trade, tourism: Picon-Deed

Maritime trade and tourism in Mon State canlevel up with better transport and power supply,according to a property market report.Yangon-based Picon-Deed Property Consultantsreleased its study this month on Myanmar’ssouthern state highlighting how its mineral andnatural resources, booming tourism industry andgeographical location can capture investmentsand regional trade.Mawlamyine, the state capital, and Kyaikhtiyo,commonly known as the Golden Rock, arepopular tourist destinations, attracting a growingnumber of local and foreign visitors, the reportsaid.“Kyaikhtiyo is the star attraction butMawlamyine, with its striking riverfrontboulevard and diverse downtown area, was notfar behind,” said Picon-Deed executive directorTony Picon.Stuart Deed, co-executive director, added that“it’s a fairly easy 3.5-hour drive from Yangon tothe Golden Rock and then only a few more hoursto Mawlamyine.”The fourth most populous city in Myanmar,

Mawlamyine is home to the 72-room HotelSuggati, which opened at the end of 2018. Thewaterfront five-storey hotel is owned bySingapore-listed Memories Group, and providesconference rooms, working spaces, a fitnesscentre and a restaurant.The Golden Rock is very popular with domestictravellers, especially during the cooler months ofDecember and January. But there is still a lot ofroom for growth. Mr Deed noted that the areassurrounding Mount Kyaikhtiyo is an ideal locationfor eco resorts and is comparatively underservedat present.Mr Picon said Mawlamyine needs to establish areliable electricity supply in order to become ahub for value-adding activities to a wide variety ofcommodities. The state has large plantations ofrubber along the Yangon-Mawlamyine Highwaybut gas-fired power stations have potential forscale up.Source: Myanmar Timeshttps://www.mmtimes.com/news/mon-state-sweet-spot-maritime-trade-tourism-picon-deed.html

NewspapersMyanmar Times

27 Jan 2020

PwC | February 2020 9

More factories complete EU’s chemical management programme

Five more factories in Myanmar completed theEU-funded “Smart” chemical management anddetox programme during the second half of 2019.The factories, including Lin Zhan, Reeblue,Champion Winner Industry, Jiu Sheng andTextile Palace, took part in a six-monthprogramme involving on-site assessment andconsultancy, participation in technical trainingand a requirement for implementation ofimprovements.They are one denim jeans factory, a footwearfactory, a dedicated garment printing facility andtwo garment factories with washing and printingunits.Although known more often for contractmanufacturing of garments, Myanmar is alreadyhost to over 60 footwear factories producing forEuropean, Japanese and US markets, as well assome vertically integrated textile mills and arapidly growing number of garment washing andprinting facilities.As modalities of production in the industryexpand, the importance of safe and responsiblehandling of chemicals and hazardous waste is

growing.“Smart Textile & Garments”, until recently knownas “Smart Myanmar” , is a project funded by theEU. This programme was first developed in 2017with support from the German Partnership forSustainable Textiles and GIZ. Key topicsaddressed include conformance with zerodischarge of hazardous chemicalsrecommendations and Globally HarmonizedSystemchemical labelling requirements.Senior international experts from Germany,Bangladesh and Pakistan have instructed localtechnical experts of the Smart project on bestpractices for chemical management in an effort topromote best practices across Myanmar’sburgeoning wet processing, textile and footwearindustries. Seventeen factories have taken part to-date.

Source: Myanmar Timeshttps://www.mmtimes.com/news/more-factories-complete-eus-chemical-management-programme.html

NewspapersMyanmar Times

28 Jan 2020

PwC | February 2020 10

Work on large LNG project in Ayeyarwady set to start in July

Work on a large liquefied natural gas (LNG)power plant in Mee Lin Gyaing, AyeyarwadyRegion is expected to begin this year, officials ofone of the companies involved with the projecthave told the Myanmar Times.The Ministry of Electricity and Energy (MOEE)originally approved the project, along with one inKan Pauk in Tanintharyi Region, and another inAhlone in Yangon Region, in 2018. The projects,once completed, were expected to generate some3,000 megawatts of power from imported LNG.Although there have been delays with theprojects, U Htu Htu Aung, deputy chief executiveofficer of Supreme Trading Co, one of the localcompanies involved in the project, recently toldMyanmar Times that work on the Mee Lin GyaingLNG power plant is set to begin later this year.During the visit by China’s President Xi Jinping toMyanmar last weekend, the governments of bothcountries agreed to hasten negotiations on theLNG power plant project in Mee Lin Gyaing.During the visit, Yunnan Provincial EnergyInvestment Group, Union Resources andEngineering Co Ltd, Zhefu Holding Group, and

Myanmar’s Supreme Trading Co Ltd signedagreements to accelerate the Mee Lin Gyaingproject.“The next stage is to sign a power purchaseagreement (PPA) with the Ministry of Electricityand Energy, which we hope to do before June.Construction can start soon after the PPA issigned so we expect to begin in July 2020,’’ U HtuHtu Aung said.The US$2.6 billion LNG power plant in Mee LinGyaing is expected to generate 1390MW ofelectricity once it is completed and will becomeone of the largest power projects in Myanmar.The will include a power plant, LNG terminal anddistribution channels.The project is estimated to generate powerstarting from 2023, and will fulfill the powerneeds in Ayeyarwaddy as well as other states andregions.

Source: Myanmar Timeshttps://www.mmtimes.com/news/work-large-lng-project-ayeyarwady-set-start-july.html

NewspapersMyanmar Times

29 Jan 2020

PwC | February 2020 11

Chin opens yam processing plant in first major investment

Chin State has opened its first elephant foot yamprocessing plant in a major investment forMyanmar’s poorest area, with plans to export toChina and other parts of Asia.The US$320,000 factory is operated by Chin HillsTreasure Company (CHTC), an agriculturalenterprise owned and run by farmer groups fromMindat, Matupi and Kanpetlet townships whohope to increase incomes of impoverishedfarmers through this important cash crop.“It is a dream come true for me, I never expected Iwould own a factory, not in all my life,” said 56-year-old U Kee Home, a farmer shareholder ofCHTC who has cultivated elephant foot yam for 15years.The 6.7 acre factory is the first major investmentto be realised in the poorest of Myanmar’s 14states and regions and could boost the confidenceof prospective agribusiness investors.With meagre transport and power infrastructure,Chin has failed to attract any significant foreign ordomestic investment, although there are signs ofinterest. In early 2019, the state governmentsigned a preliminary agreement with Norway

Power Co for a $50 million hydropower scheme.The UK’s Department for InternationalDevelopment contributed a $80,000 grant for adrying machine for the yam processing plantthrough the DaNa Facility, a private sectordevelopment programme, which also gavetechnical support. The project was led by theMyanmar Fruit, Flower and Vegetable Producerand Exporter Association, which is also workingon avocado and coffee in the state.Chief Minister U Salai Lian Luai officiated at thefactory opening on January 26 in Htin Chaungvillage, Mindat township, with over 400attendees.“This first-ever elephant foot yam processingfactory in Chin State is creating employmentopportunities and increasing incomes for localpeople and stands as a model for other investorsto follow,” he said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/chin-opens-yam-processing-plant-first-major-investment.html

NewspapersMyanmar Times

29 Jan 2020

PwC | February 2020 12

Good prospects in Myanmar for long-term investors: Oxford Business Group report

Myanmar’s growth and forecasts make an excitingprospect for companies seeking long-termopportunities, Oxford Business Group’s TheReport: Myanmar 2020, says.The Report: Myanmar 2020 marks theculmination of 12 months of field research by ateam of analysts from Oxford Business Group, is aglobal research and advisory company.The publication assesses trends anddevelopments across the economy, includingthose in macroeconomics, infrastructure, bankingand others.“Investors eyeing Myanmar’s potential willinevitably come across challenges typical of thosefound in frontier markets, such as infrastructuregaps and a workforce in need of upskilling,”OBG’s Editor-in-Chief Oliver Cornock, said.“However, the country’s growth story over the lastdecade and forecasts putting it among the fastest-growing economies in ASEAN in the coming yearsmake it an exciting prospect for companiesseeking long-term opportunities.” Cornock added.The report said that Myanmar’s inherentadvantages, which include a dynamic internal

market, an abundance of natural resources and astrategic location between China and India, meantit had plenty to offer the international businesscommunity.“The transition under way in Myanmar’s financialservices sector is gathering pace, withliberalisation continuing to drive formalisationand financial inclusion efforts across the bankingindustry, international players establishing apresence in the insurance segment and capitalmarkets opening up to both foreign and localinvestors,” Patrick Cooke, the OBG’s RegionalEditor for Asia, said.“We look forward to analysing the next phase ofMyanmar’s development as it continues to expandthe role of the private sector in driving growth.”Cooke added.

Source: Myanmar Timeshttps://www.mmtimes.com/news/good-prospects-myanmar-long-term-investors-oxford-business-group-report.html

NewspapersMyanmar Times

29 Jan 2020

PwC | February 2020 13

Yangon’s New City development project initiates ‘Swiss challenge’

The Yangon government has launched a “Swisschallenge” tender for Yangon New City’s first-stage infrastructure projects, following ChinesePresident Xi Jinping’s visit to Myanmar.Yangon Mayor U Maung Maung Soe and SongHailiang, president of state-owned ChinaCommunications Construction Co (CCCC) signeda Letter of Intent for the New Urban Developmentof Yangon City on January 18, during the Chineseleader’s visit.The YCDC has submitted the Pre-ProjectDocuments for six Stage 1 infrastructureworkstreams for approval to the UnionGovernment level. After an approval is received,YCDC will launch the Swiss challenge tender, saidNYDC CEO Serge Pun in an announcement.Under a Swiss challenge tender, a publicauthority that has received an unsolicited bid for apublic project publishes the bid and invites thirdparties to match or better it. The entity thatsubmitted the bid itself is also allowed to matchor better the best bid which comes out of theSwiss challenge process He added that theprocess will be carried out in a transparent and

fair way in accordance with the law.The first phase will include the construction offive village townships, two bridges, 26km ofartery roads, 10 square kilometres of industrialestate, power plant, transmission and distributionfacilities as well as fresh water supply andwastewater treatment plants.Launched by the regional government in March2018, the Yangon New City project covers an areatwice the size of Singapore.NYDC signed an agreement with CCCC to preparedetailed pre-project documents infrastructure anda 10-square-kilometre industrial estate. Thecompany was widely criticised for inking the dealwithout calling a tender.NYDC explained that this was to “avoid wastingtime” and it would carry out the Swiss challenge.Once the proposal is finalised, NYDC will disclosethe documents to the public and call a tender.

Source: Myanmar Timeshttps://www.mmtimes.com/news/yangons-new-city-development-project-initiates-swiss-challenge.html

NewspapersMyanmar Times

29 Jan 2020

PwC | February 2020 14

Business groups voice opposition to Myanmar govt′s car plan

The Automotive Association of Myanmar (AAM),European Chamber of Commerce (EuroCham)and other vehicle industry bodies are voicing theiropposition to a plan announced by the Ministry ofCommerce that would see the providing of vehicleimport permits to senior governments officials asan incentive.Representatives of the British Chamber ofMyanmar, European Chamber of Myanmar,Delegation of German Industry and Commerce inMyanmar, EuroCham Myanmar AutomotiveAdvocacy Group and AAM held a joint pressconference on the issue yesterday in Yangon.On January 2, the Ministry of Commerceannounced that senior government officials, suchas directors general, deputy directors general, andthose with a minimum of 25 years of excellentservice, would be given import permits forvehicles as rewards for their work.The vehicles approved for import would bedetermined by the ministry on a yearly basis andwould be allowed into the country directlywithout going through a showroom or cardealership. “If the government goes ahead with

this plan, it will affect the whole automotiveindustry greatly. The image of the industry inMyanmar, which is heavily dependent on foreigninvestment, will not be good,” said Mr PeterBeynon, chair of the British Chamber ofCommerce Myanmar.Following the announcement of the plan, theAAM wrote to the Ministry of Commerce askingthat the plan be reviewed or shelved.The AAM said the plan would raise feelings onunfairness among people who have to pay taxes tothe government for the cars they buy throughordinary channels and also cause price instabilityin the local car market.The AAM further stated that the plan woulddamage companies assembling vehicles for sale inthe local market, and car sales centres owned bylocal companies.

Source: Myanmar Timeshttps://www.mmtimes.com/news/business-groups-voice-opposition-myanmar-govts-car-plan.html

NewspapersMyanmar Times

30 Jan 2020

PwC | February 2020 15

Security upgrade on the cards for Myanmar’s digital payments

For development of Myanmar’s digital paymentsector, cyber security upgrades will be carried outin accordance with international norms, sayofficials of the Myanmar Information SecurityAssociation (MISA) and Myanmar PaymentUnion (MPU).Security for digital payment services in thecountry needs to be strong and it is critical that itbe put in place so that the country can achieve itsgoal of encouraging cashless payments official ofMISA and MPU said.Earlier this month MPU signed an agreementwith local digital security services company RITZto upgrade security of MPU cards. The MPU wasfounded by local banks to offer card paymentsystems in the country.“If digital adoption supported by digital systems israted on a scale of 1 to 5, Myanmar is still lowerthan 2. As MPU cards are for payments in kyat,they are still inconvenient for internationalpayment interfaces.In Singapore, their cards can also be used inMyanmar. That is because they have adoptedinternational standards. To reach that stage,

upgrading MPU’s cyber security is the first stepand it is critical,” said MISA secretary U MikePhone Myint.Payments essential for daily life and changing todigital systems is a must if the country is to keeppace with progress. Maintaining the trust ofusers, however, is important in changing to digitalpayment systems and that is why MPU needsupgrade its cybersecurity, said U Kyaw Soe Linn,patron of MISA and chief technology officer ofYoma Bank.“It needs test to know the security of MPU cards.If more people use them because they are asecure, reliable payment system it will definitelyhelp our goal of spreading the use of non-cashpayments,” said MPU CEO U Kyaw Soe Linn.“Myanmar’s digital payment systems have toimplement the payment card industry datasecurity standard (PCI Security)to keep pace withinternational standards, so this is what we willbegin with,” said U Mike Phone Myint.Source: Myanmar Timeshttps://www.mmtimes.com/news/security-upgrade-cards-myanmars-digital-payments.html

NewspapersMyanmar Times

31 Jan 2020

PwC | February 2020

2. Weekly Key Policy News

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PwC | February 2020

Weekly Key Policy NewsHeadlines

Myanmar sets investment priorities for all states, regions in the country

Group seeks comments on policy paper on ‘quotas’ for employment of disabled

Confusion over Myanmar’s new beneficial ownership rules

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New trademark registration system expected in Myanmar

Myanmar Home Affairs Minister to Retire; Military to Pick Successor

PwC | February 2020 18

Myanmar sets investment priorities for all states, regions in the country

The Ministry of Investment and ForeignEconomic Relations this month announced taxexemptions for investments in selected sectors inall 14 states and regions in Myanmar and the NayPyi Taw Union Territory.The key investment sectors in Myanmar’s statesand regions are mainly agriculture,manufacturing and infrastructure. Now, thegovernment is expanding the areas of investmentfor businesses to five priority sectors andstreamlining the process in the states and regions.The top five priority investment sectors in ChinState are hotels and tourism, power, agricultureand its related services, livestock production andbreeding, and urban development and industrialzone. Any investment in these sectors qualifies forseven years of tax exemption.“Some projects which generate above 30 MW ofelectricity are progressing with negotiationsongoing between the Ministry of Electricity andEnergy and investors,’’ U Soe Htet, the Ministerfor Chin State Development Affairs, Electricityand Industry, told The Myanmar Times.Chin State has only two investment projects and

ranks lowest where investment in this country isconcerned.The top five priority investment sectors in KayahState are hotels and tourism, agriculture and itsrelated services, manufacturing, power, andmining.In Kayin State, the top five priority investmentsectors are agriculture and its related services,hotels and tourism, manufacturing, logistics, andpower. The key drivers of Kayah State’s economyare tourism and agriculture.The top five priority investment sectors inRakhine State are agriculture and its relatedservices, livestock and fisheries, educationservices, infrastructure and transportationdevelopment, and hotel and tourism.Any investment in a promoted sector in Kayah,Kayin and Rakhine also qualifies for seven yearsof tax exemption.

Source: Myanmar Timeshttps://www.mmtimes.com/news/myanmar-sets-investment-priorities-all-states-regions-country.html

NewspapersMyanmar Times

28 Jan 2020

PwC | February 2020 19

Group seeks comments on policy paper on ‘quotas’ for employment of disabled

A policy options paper with suggestions onMyanmar introducing a quota system foremploying persons with disabilities is now openfor comment.The paper, available in both English andMyanmar language, was prepared by theAssociation for Aid and Relief, Japan (AARJapan) and the Myanmar Centre for ResponsibleBusiness (MCRB) at the request of therehabilitation department of the Ministry ofSocial Welfare, Relief and Resettlement.The document focuses on how to give effect toChapter 10 (Employment) of the 2015 Lawconcerning the Rights of Persons with Disabilitieswith the aim of encouraging and facilitatingcompanies to employ more persons withdisabilities and introducing credible policy andregulatory measures for this.It is intended to enable the Sub-Committee onEmployment to make recommendations via theWorking Committee to the National Committee inline with their duty to “study, analyse and makerecommendations and undertake relevantcoordination to enable the adoption of the policies

and plans that support employment of personswith disabilities in accordance with the Law onProtecting the Employment Rights of Personswith Disabilities.”The terms of reference and membership of theSub-Committee were adopted on theInternational Day of Persons with Disabilities onDecember 2019 in Order 98/2019 of the NationalCommittee on the Rights of Persons withDisabilities, chaired by Vice President U HenryVan Thio.Myanmar ratified the United Nations Conventionon the Rights of Persons with Disabilities as earlyas 2011. The convention emphasises the rights ofthe disabled in all areas of life, as well as inemployment and work.

Source: Myanmar Timeshttps://www.mmtimes.com/news/group-seeks-comments-policy-paper-quotas-employment-disabled.html

NewspapersMyanmar Times

29 Jan 2020

PwC | February 2020 20

Confusion over Myanmar’s new beneficial ownership rules

Myanmar’s new rules on making beneficialownership more transparent are a move in theright direction but are inconsistent and lackclarity, according to governance and financialexperts.The Directorate of Investment and CompanyAdministration (DICA) directive on disclosure ofbeneficial ownership information came into forcein January, aiming to “enhance the transparencyand accountability” of beneficial owners and to“deter tax evasion, money laundering andterrorist financing.Beneficial ownership gives someone ultimatecontrol over an entity, such as a company orproperty, and rights over its benefits, with orwithout being on record as the owner. Chains ofownership can be used by criminals and theirorganisations to hide their identity.Enforcing transparency of beneficial owners andthe related issue of “politically exposed persons”is a core part of the fight against corruption, a toppriority for State Counsellor Daw Aung San SuuKyi’s government as it enables the authorities andother stakeholders to trace financial flows and

identify connections and patterns.Under pressure to implement the requirements ofthe Extractive Industries Transparency Initiative,of which Myanmar is a member, differentbranches of the government have recently pushedahead with reforms involving beneficialownership and “politically exposed persons”.The possibility of being categorised as a high-riskcountry for money-laundering by the FinancialAction Task Force, a Paris-basedintergovernmental organisation, has added to thepressure on Myanmar to clean up these areas.But financial and governance experts, whodeclined to be named for reasons of sensitivity,say Myanmar’s new rules will improvetransparency but they are still too vague and donot appear to be consistent.

Source: Myanmar Timeshttps://www.mmtimes.com/news/confusion-over-myanmars-new-beneficial-ownership-rules.html

NewspapersMyanmar Times

31 Jan 2020

PwC | February 2020 21

New trademark registration system expected in Myanmar

Myanmar’s new Trademark Law, enacted lastyear, establishes the framework for acomprehensive trademark registration andprotection system, which will enter into forcesoon.This is relevant and important to both foreign anddomestic trademark owners, who should reviewtheir portfolio in light of these significant legalchanges.The law is also a positive move for businesses inMyanmar as they have long relied on outdatedcolonial-era laws to protect their intellectualproperty rights.The Myanmar Times spoke to Anja Schwarz, alawyer with Luther Law Firm who specialises inintellectual property, about the changes under thenew system and what it means for the businesscommunity.What is the current situation and what willchange? In the past, trademark protection inMyanmar was obtained by filing a Declaration ofOwnership with the Registration of Deeds Officeand publishing the trademark via a CautionaryNotice in a Myanmar newspaper.

This will change with the implementation ofMyanmar’s new trademark registrations system,scheduled to become effective in early 2020. Inthe first “soft opening” phase, which is expectedto last for six months, trademarks registeredunder the former system may be refiled with thenew register, allowing such trademarks to claimseniority rights, meaning that in the event of adispute, they will prevail against trademarkswhich have been filed at a later point in time.Aside from trademarks that have been registeredby filing a Declaration of Ownership, trademarkswhich have been put to actual use in Myanmar -without any formal registration - may also beaccepted for registration.Upon completion of the soft opening period, allapplications for registration will be reviewed andtrademarks meeting the formality requirementswill be published for opposition purposes, if thereare no absolute grounds of refusal.Source: Myanmar Timeshttps://www.mmtimes.com/news/new-trademark-registration-system-expected-myanmar.html

NewspapersMyanmar Times

31 Jan 2020

PwC | February 2020 22

Myanmar Home Affairs Minister to Retire; Military to Pick Successor

NAYPYITAW—Home Affairs Minister LieutenantGeneral Kyaw Swe will retire from his post, ananonymous government source confirmed to TheIrrawaddy.The source told The Irrawaddy that there will be achange in the home affairs minister position andthat the order will be issued soon.Lt-Gen. Kyaw Swe turned 60 in November 2019and has reached the retiring age for civil servantsin Myanmar. He will have to submit a request forretirement to the President and then seek theapproval of the Union Parliament.Under the 2008 Constitution, three ministries—Defense, Home Affairs and Border Affairs—arecontrolled by the Myanmar military, known as theTatmadaw. The heads of the three ministries arenominated by the military chief and the Presidentappoints them with the approval of the nationallegislature.Chief of Military Security Affairs LieutenantGeneral Soe Htut and Chief of Bureau of SpecialOperations Lieutenant General Aung Soe are bothpossible nominees to become the next homeaffairs minister.

Lt-Gen. Soe Htut is a graduate of Intake 64 at theDefense Services Academy (DSA) and has led theOffice of the Chief of Military Security Affairssince 2016.Lt-Gen. Aung Soe graduated from Intake 26 at theDSA and served as the commander of Division 33and commander of the Northeastern Commandbefore being appointed deputy home affairsminister under the U Thein Sein government.Under the National League for Democracygovernment, the Myanmar military brought himback into military service and appointed himChief of Bureau of Special Operations.“We heard that Lt-Gen. Soe Htut will become thenext home affairs minister,” said an official of theHome Affairs Ministry who asked not to benamed.

Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/myanmar-home-affairs-minister-to-retire-military-to-pick-successor.html

NewspapersThe Irrawaddy

31 Jan 2020

PwC | February 2020

3. Weekly Investment News

23

PwC | February 2020

Weekly Key Investment NewsHeadlines

Thailand firm to build new urban centre with construction ministry

Muse’s trade volume reaches to US$1.67 B within three and a half months

Block A-6: Getting the deal done

24

GIC said to become Yoma Bank’s second foreign shareholder

Myanmar Investment Swaps Apollo Towers Holding For Stake In AP Towers

PwC | February 2020 25

Thailand firm to build new urban centre with construction ministry

The construction ministry inked a deal with a Thaifirm to build a US$1 billion “smart city” innortheastern Yangon. The JV agreement - signedlast Friday - would pave way to more than 30,000new jobs and US$60 million in direct tax, the twosides said.The ministry’s Department of Urban and HousingDevelopment and Amata Asia (Myanmar), asubsidiary of Thailand-based industrialconglomerate, Amata Corporation, have signed ajoint venture agreement for the development ofYangon Amata Smart and Eco City (YASEC)project over a land of 2000 acres nearLaydaungkan village, located between SouthDagon and East Dagon townships.The JV is named YASEC Limited, with Amataholding 80 percent of shares. The company isleasing the land from the Yangon regionalgovernment for 50 years with an extension ofanother 10 years, and another 10 years for theYASEC project.After Amata proposed the idea in early 2017, itconducted a feasibility study in May 2017. InDecember 2017, the engineering survey and the

Environmental Impact Assessment were carriedout. The Myanmar Investment Commissiongranted the permit two years later, in October2019.Amata also signed a memorandum ofunderstanding with five supporting internationalstrategic partners; Industrial Gas Provider,Communication and Information Technology,Power Plant and Natural Gas, Cement-BuildingMaterials and International vocational schoolinstitute.“[The agreement meant] strengthening economicstability, reducing poverty, human resources andsocial development. The YASEC will create morethan 33,000 job opportunities,” said YASECmanaging director Yasuo Tsutsui, adding that thefirm is committed to the Myanmar SustainableDevelopment Plan.

Source: Myanmar Timeshttps://www.mmtimes.com/news/thailand-firm-build-new-urban-centre-construction-ministry.html

NewspapersMyanmar Times

28 Jan 2020

PwC | February 2020 26

Muse’s trade volume reaches to US$1.67 B within three and a half months

The volume of 18 border trade centers is overUS$3.1 billion within three and a half months inthis fiscal year and trade volume of Muse bordertrade center alone is reached over half of totaltrade volume in that period, according to theMinistry of Commerce.Myanmar earned US$2.504 billion in the sameperiod in the last fiscal year.The 18 border trade centers in Myanmar areMuse, Lweje, Chinshwehaw, Kanpiketi, Kengtong,Techilek, Myawady, Kawthoung, Myeik,Nabule/Htikhi, Mawtaung, Maese, Sittwe,Maungdaw, Tamu, Reik, Htantalan andKyaingleik.Union Minister for Commerce Dr Than Myintsaid: "To boost trade, we need to improve bothquantity and quality. In import sector, we need toimport more capital goods that can generatesustainable economy."

Source: Eleven Myanmarhttps://elevenmyanmar.com/news/muses-trade-volume-reaches-to-us167-b-within-three-and-a-half-months

NewspapersEleven Myanmar

29 Jan 2020

PwC | February 2020 27

Block A-6: Getting the deal done

The government’s need to secure new supplies ofnatural gas and a desire to send a positive signalto investors has likely helped a consortiumincluding Total, Woodside and MPRL negotiatefavourable fiscal terms to develop the A-6 block.A RECENT deal between the government and aprivate consortium to develop a major newoffshore gas field comes at an important time forthe country, signalling that it is open for businessjust as production declines at its existing fields.On December 16, the state-run Myanma Oil andGas Enterprise signed off on fiscal terms that theconsortium – comprising France’s Total,Woodside from Australia and MPRL E&P, ownedby Myanmar businessman U Moe Myint – saidwere necessary to move forward with the projectin the A-6 field off the coast of AyeyarwadyRegion.Although the consortium has made severaldiscoveries in the block, which has estimatedreserves of 2-3 trillion cubic feet, developing itwill be challenging because the gas is more than2,000 metres below the water. The project willalso require a 240-kilometre undersea pipeline so

it can link up to existing pipelines to Yangon andThailand from the Yadana field. The originalproduction sharing contract (PSC) for the fielddates to 2007 and is designed for a shallow waterblock rather than the much higher costs of ultradeep water production.The deals signed last month – a fourthamendment and supplementary agreement to theconsortium’s PSC, as well as an agreement on theupstream and midstream ratio – largely addressthese issues and enable the consortium to enterwhat’s known as the preliminary front endengineering and design phase. While a number ofhurdles remain, such as negotiating the gas salesagreement, A-6 has moved a significant stepcloser to entering production.Support more independent journalism like this.Sign up to be a Frontier member.

Source: Frontier Myanmarhttps://frontiermyanmar.net/en/block-a-6-getting-the-deal-done

NewspapersFrontier Myanmar

29 Jan 2020

PwC | February 2020 28

GIC said to become Yoma Bank’s second foreign shareholder

Singapore’s sovereign wealth fund, GIC Pvt Ltd(GIC), and Norway’s private equity firm, Norfund,have bought a substantial stake in Yoma Bank, ledby tycoon Serge Pun.GIC and Norfund will be buying a 30 percentstake in Yoma Bank for K130 billion (US$89million) in the latest round of funding, accordingto company sources.Yoma Bank became the first bank in Myanmarlast year with a foreign stakeholder following adecision by the International Finance Corporation(IFC) to convert a $5 million loan into a 5pcequity shareholding.The Myanmar Times understands that after thetransaction is complete, IFC will have an interestof around 4pc, while Norfund and GIC will own10pc and 20pc respectively.“Post the introduction of the new investors, wewill be the best capitalised local bank inMyanmar,” Yoma Bank chief executive officerDean Cleland told Bloomberg.As GIC is operating many different businesses,their experience across the regions is the one ofthe best things to get out of, he added.

This marks the latest major foreign investment inPun’s group of companies.In November 2019, Philippine conglomerateAyala Corp bought a 20 pc stakes in two of SergePun’s listed companies for a total of US$238million. Ayala, with investments in real estate,telecommunications, energy and infrastructure,will acquire stakes in Singapore-listed YomaStrategic Holdings and Yangon-listed FirstMyanmar Investment (FMI), becoming thesecond-largest shareholder in both.The deal with Ayala represented the first majorforeign investment in a company listed on theYangon Stock Exchange since Myanmar’ssecurities commission announced in July thatnon-Myanmar individuals and entities would bepermitted to acquire up to 35pc of listed firms.

Source: Myanmar Timeshttps://www.mmtimes.com/news/gic-said-become-yoma-banks-second-foreign-shareholder.html

NewspapersMyanmar Times

30 Jan 2020

PwC | February 2020 29

Myanmar Investment Swaps Apollo Towers Holding For Stake In AP Towers

(Alliance News) – Myanmar InvestmentsInternational Ltd said Thursday its subsidiaryMIL 4 Ltd swapped its stake in Apollo TowersHoldings Ltd for a stake in AP Tower HoldingsPte LTD, which owns Pan Asia Majestic Eagle Ltd,another Myanmar independent tower company.Under the share swap, MIL 4 has exchanged itsexisting 13.7% shareholding in Apollo Towers fora 6.2% shareholding in AP Towers, of whichapproximately 4.1% is attributable to MIL.A MIL representative will sit on the board of APTowers and will continue to enjoy materially thesame minority protections, the company noted.The company said the share swap effectivelybrings Apollo Towers and Pan Asia Towers underthe common ownership of AP Towers.AP Towers said it “now manages one of the largestnetworks of telecom towers in Myanmar,providing tower and power services to all ofMyanmar’s mobile network operators.The company has also confirmed that disposal ofentire shareholding in Medicare InternationalHealth & Beauty to one of its joint venturepartners for USD1.0 million in cash has been

completed and the sale proceeds have beenreceived.Myanmar Investment shares were untraded inLondon at USD0.80 on Thursday.

Source: Consult Myanmarhttps://consult-myanmar.com/2020/01/30/myanmar-investment-swaps-apollo-towers-holding-for-stake-in-ap-towers/

NewspapersConsult Myanmar

31 Jan 2020

PwC | February 2020

3. Weekly New Tenders

30

PwC | February 2020

No applicable Tenders announced for the week ending 01 Feb 2020.

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 | February 2020

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

ADB:TA-9723 REG: Support for Human and Social Development in Southeast Asia - International Public Health Specialist (REG: HBSEZ) (52335-001), Closing date: 05 Feb 2020 (Individual)

WB: Local Consultant to Investment Climate and Competitiveness Program in Myanmar, Closing date: 03 Feb 2020 (Individual)

ADB: TA-9621 REG: Green and Innovative Finance Initiative for Scaling Up Southeast Asian Infrastructure - Health Information Systems Specialist (52077-001), Closing date: 06 Feb 2020 (Individual)

ADB: TA-9621 REG: Green and Innovative Finance Initiative for Scaling Up Southeast Asian Infrastructure - International Legal Expert (52077-001), Closing date: 06 Feb 2020 (Individual)

PwC | February 2020

Tenders (Multilateral organizations)List (cont’d)

Note: tenders information are collected from https://wbgeconsult2.worldbank.org, www.devex.com, www.adb.org, https://www.ungm.org

33

ADB: TA-9621 REG: Green and Innovative Finance Initiative for Scaling Up Southeast Asian Infrastructure - Health Financing and Insurance Specialist (52077-001), Closing date: 06 Feb 2020 (Individual)

ADB: TA-9723 REG: Support for Human and Social Development in Southeast Asia - Preparing the REG: Healthy Borders Special Economic Zones (Consulting Firm) (52335-001), Closing date: 06 Feb 2020

WB: South and Central Asia including Myanmar Regional Broadband Infrastructure Study, Closing date: 13 Feb 2020

WB: Evaluation of the 2030 Water Resources Group Model & Lessons Learned for Achieving the SDGs, Closing date: 02 Mar 2020

PwC | February 2020

4. MIC Permitted Projects

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PwC | February 2020

MIC Permitted Projects (Meeting 2, 2020)

35

No. Name of Company Type of Investment Form of Investment

1 Betagro (Myanmar) Co., Ltd Broiler hatchery and breeder farm Joint Venture

2Betagro (Myanmar) Co., Ltd.[Betagro Public Co., Ltd. (Thailand) 80%, Shwe Me Co., Ltd. (Myanmar) 20%]

Manufacturing and marketing of animal feed

Joint Venture

3 Pyai Sone Win Aung Co., LtdAssembling, manufacturing and sales of motor vehicles

Wholly Myanmar Owned

4 Dishang Group (Myanmar)Co., Ltd. Construction and leasing of factories Wholly Foreign Owned

5 Global Biz Link Co., Ltd.Construction operation and leasing of hotel, shop house and shopping mall

Wholly Myanmar Owned

6 CNTIC VPower YG2 LimitedGeneration of 350 MW electricity from LNG, supply and sale of electricity on IPP(BOO) basis

Wholly Foreign Owned

7 VPower KC1 LimitedGeneration of 20.54 MW electricity from natural gas, supply and sale of electricity on IPP (BOO) basis

Wholly ForeignOwned

Source: DICA

PwC | February 2020

5. Upcoming Events

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PwC | February 2020

Upcoming Events (January 2020) List

Date Location Name of Event Sector Price Focus Points

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.”

37

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

PwC | February 2020

Upcoming Events (February 2020) List

Date Location Name of Event Sector Price Focus Points

18-19 Feb Yangon

Mobile Money & Financial Inclusion Summit

Banking & Finance

TBC

"A Special Focus on Myanmar plusEmerging Opportunities from theregional Digital Transformation."Mobile Money & Financial Inclusion Summitis the cornerstone platform for allstakeholders in the evolving digital financemarketplace to address opportunities andfundamental challenges including:Government and Industry Collaborations,Inclusive Interoperability; EmergingInnovative Payment Platforms; Building aLiquid and Expansive Agent Network;Growth Markets; etc.

38

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

PwC | February 2020

Upcoming Events (February 2020) List (cont’d)

Date Location Name of Event Sector Price Focus Points

26-28 Feb Yangon

International Conference on Future Computer and Communication

IT andTechnology

TBC

“Following the success of 2019, 2020 The12th International Conference on FutureComputer and Communication (ICFCC2020) is to be held conjunction with the 18thICCA 2020 once again in Yangon (Rangoon),Myanmar (Burma) during February 26-28,2020, which is organized by SCIence andEngineering Institute, USA, co-organized byUniversity of Computer Studies, Yangonunder Ministry of Education, Yangon(Rangoon), Myanmar (Burma), andtechnically supported by Nagoya Institute ofTechnology, Japan and OKAYAMAUniversity, Japan.”

27-28 Feb YangonInternational Conference on Computer Applications

IT and Technology

TBC

“International Conference on ComputerApplications will bring together leadingengineers and scientists in computer andinformation technology from around theworld. The conference offers an excellentopportunity to learn and share the latestdevelopments to interact with leadingexperts in the field.”

39

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

PwC | February 2020

Upcoming Events (February 2020) List (cont’d)

Date Location Name of Event Sector Price Focus Points

28-29 Feb Yangon

International Conference on Management, Economics & Social Science (ICMESS)

Education & Training

TBC

“International Conference on Management,Economics & Social Science will provide anexcellent international forum for sharingknowledge and a result in Management,Economics & Social Science. The aim of theConference is to provide a platform to theresearchers and practitioners from bothacademia as well as industry to meet theshare cutting-edge development in the field.”

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

© 2020PricewaterhouseCoopers 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

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