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ECONOMY USD 67.0 billion as current GDP GDP per capita of USD 5,500 2015 GDP composition by sector
SOCIAL INDICATORS 1 in 4 people considered poor 93.1% adult literacy 66.3 years of life expectancy Infant mortality of 43.6 per 1000 live births Less than 3 doctor serving more than 4,500 people 80.6% access to safe water 77.4% access to sanitation facilities
TRADE Exports: USD 9.8 billion (14.6% of GDP) Imports: USD 12.6 billion (18.9% of GDP) Top exports: natural gas, wood products, pulses & beans, fish, rice Top imports: fabric, petroleum products, fertilizer, plastics, machinery Top 3 trading partners: China, Thailand, Japan & India
RESOURCES Land area of 676,578
square kilometers (19.2% agricultural land)
100,000 megawatts of hydropower potential
90% of world rubies 48.2% forest area
PEOPLE 53.9 million population
68% ethnic Burmese 89% Buddhist
Agriculture 36.1%
Services 41.6%
Industry 22.3%
Fast facts 2015
Sources: Adapted from ABD’s “Myanmar
Unlocking The Potential Country Diagnostic Study”
based on data from CIA World Fact Book and Trending Economics
Myanmar
TOP REASONS TO INVEST IN
Myanmar STRATEGIC LOCATION
Myanmar’s favorable geographic location is ideal for developing port facilities
that will turn it into a regional hub with services linked to china, India & the
indo-china region.
POSITIVE ATTITUDE TOWARDS THAI
PRODUCTS Products from Thailand are
viewed as high quality & standards products. Imports of Thai products have been
growing 10% per year
OPPORTUNITIES IN MULTI-INDUSTRIES
Since the opening of its economy, demand in Myanmar is expected
to rise; several opportunities exist for multiple industries as the
market is still under-penetrated, especially in infrastructure, real
estate, food, etc.
PRODUCTION BASE Myanmar’s manufacturing industry is yet to be fully developed with plenty of rooms for more factories
to be set up
LOW COST LABOR Myanmar’s minimum
wage of 3,600 kyat/day is 3 times less than the
minimum wage in Thailand
FAVORABLE TAX INCENTIVES
Several favorable tax incentives have been issued to draw in investors. i.e. Up
to 5 years income tax exemption, more if you’re
investing in SEZs
SUPPORTIVE TRADE POLICIES
Several trade policies have been initiated by the local government to create an
investor-friendly environment, i.e. 100%
foreign ownership of companies are allowed
HIGH CONSUMPTION ASEAN’s 7th most
populous country is currently unserved by
local products, services & facilities, despite its
rising demand
NATURAL RESOURCE RICH
Known for its wealth in gemstones, precious metals,
& nonprecious metals, Myanmar is also rich in
energy resources
Myanmar: Through the Looking Glass
Back to Basic: Knowing Myanmar
Geography Officially known as the Republic of the Union of Myanmar, Myanmar, also known as Burma, is a sovereign state in Southeast Asia. Spreading over 676,578 square kilometers of land, Myanmar shares boundaries with Bangladesh and India in the west and northwest, China in the north and northeast, and Laos and Thailand in the east and southeast. The Bay of Bengal and the Andaman Sea forms an extensive coastline of 1,930 kilometers that runs along its south and southwest border. Myanmar’s terrain features two very different kinds of ecological settings. Its northern frontier is consisted of a ring of hills and rugged mountains that can, at times, make overland transportation between itself and its neighboring countries very difficult. On this elongated horseshoe of high plateau and "rugged mountain” live hill people of various tribes. The country’s central compact lowlands inhabits rice-growing farmers, who have lived in symbiotic alliances for over a 1,000 years.
Climate & Weather Like many Southeast Asian countries, Myanmar has a tropical monsoon climate with three seasons: hot, rainy and cool.
HOT SEASON Mid-February – Late May
RAINY SEASON Late May – Late October
COOL SEASON Late October – Mid-February
As for Myanmar’s weather conditions, the amount of rainfall varies sharply across the country’s different terrains and regions. Heavy annual rainfall can be expected for areas along the coastline. In its drier uplands, annual precipitation is considerably less.
Time Myanmar has a single time zone of UTC (GMT) + 6:30, just 30 minutes behind Thailand.
People Myanmar’s population was last recorded at 53.9 million people and is expected to continue growing, reaching almost 56.2 million people by 2020. Myanmar’s population is relatively young with the population’s average age of 28.3 years. Its most populated cities include Yangon with 4.8 million people, Mandalay with 1.2 million people and Naypyidaw with 1.0 million people. The people of Myanmar are often referred to as Burmese.
5
Religion Around 89% of Myanmar’s population is Theravada Buddhism. Although Theravada Buddhism is the most widespread, other religions are practiced largely without obstruction. These religions include: Christian 4% (further broken down into Baptist 3%, Roman Catholic 1%), Muslim 4%, Animist 1% and others 2%.
Language The official language of Myanmar is the Myanmar language or occasionally referred to as Burmese. It is spoken by the majority of the population and spoken as a second language by other ethnic minorities within Myanmar and its neighboring countries. Although the Myanmar language is used in most offices, English is sometimes used in forms and receipts and can be found alongside the local dialect on store signs. The Myanmar language falls under the Tibeto-Burman group of the Tibeto-Chinese family of languages. However, unlike characters found in the Chinese language that are ideographic or have characters which originated from pictures, characters of the Myanmar language are alphabets that were derived from the Pahlavi script of South India. The Myanmar alphabets consist of eleven vowels and thirty-two consonants.
Government Since 2012, the military junta has been replaced with a civilian government.
Currency
Myanmar’s currency is the “Burmese kyat”, represented as ကကကက, a single simple K, or
abbreviated as MMK. One kyat can further be subdivided into 100 “pya”. Kyats are offered in almost 15 different banknotes with 50 pyas as its smallest banknote and 10,000 kyats as the largest.
Myanmar remain a cash-based society, thus, credit cards or traveler checks are rarely accepted. Large transactions are normally conducted in US dollars.
Infrastructure Electricity According to the World Bank, around 30% of Myanmar’s population have access to electricity despite the country’s wealth in resources. As of 2014, the average annual electricity consumption per capita was 160 kilowatt-hours with only 16% of rural households having a connection. As a result, many live without lights or basic household appliances to use on a daily basis. Myanmar’s limited electricity connectivity has also hindered businesses and investments growth. Nonetheless, the local government plans to bring electricity to everyone in Myanmar by the end of 2030. For those with access, Myanmar’s electricity supplies run on a standard voltage of 230 V and the standard frequency of 50 Hz. Power sockets and plugs vary throughout the country, but the 4 commonly used types of sockets and plugs are “type C” (ungrounded plugs with two round prongs), “type D” (grounded plugs with three round prongs), “type F” (ungrounded plugs with two round prongs; also known as the “Schuko plug”) and “type G” (grounded plugs with three rectangular prongs that form an isosceles triangle). Telecommunications Over the past two years, Myanmar’s telecom-munications industry has changed dramatically. The country’s subscription rates have skyrocket and millions are getting connected each day. In 2012, less than 10% of the population were connected via mobile devices. Today, over 60% is connected. Myanmar’s mobile market is said to be the 4th fastest growing markets in the world for net additions to mobile subscription, only after China and India. As of now, Myanmar has 36 million mobile subscriber. Much of the market change had been mostly contributed by the entry of large international operators, Qatar’s Ooredoo and Norway’s Telenor, as well as more affordable sim card prices that dropped from 2000 US dollars to 250 US dollars. It is believed that Myanmar’s wireless market can grow to become as lucrative as the market in Thailand and Malaysia. As for its fixed line market, penetration remains quite low due to high subscription fees, limited coverage and minimal speed.
0
500
1,000
1,500
2010 2015 2014 2013 2012 2011
Myanmar Kyat Against US Dollar, 2010 – 2015, Monthly
Source: Bloomberg
Myanmar: Through The Looking Glass
6
Internet In Myanmar, broadband internet access has remained very rare. Coupled with its high subscription fees, very few households can afford it. The going fixed lines connection fee starts at around 50 US dollars a month, whereas the current minimum wage in Myanmar is under 3 US dollars a day. This fee does not include the additional setup costs and annual fees. As a result, the penetration rate of fixed-line and internet broadband connection is less than 1%. Transportation Like most countries within the region and many across the world, road transportation is the main transportation mode in Myanmar. Although some towns and cities are accessible by existing railway lines and rivers, the condition of services make it too difficult people to travel by train, whereas river travels consume too much time. Nonetheless, the country’s existing transportation infrastructure is still underdeveloped compared to its size, population and potential. ROAD: Among ASEAN countries, Myanmar has one of the lowest road density in the region despite its road network having nearly doubled from 90,713km in 2004 to 148,690 km in 2012. However, there is still plenty of room for improvement in terms of road conditions. Out of the country’s total road network, only 39% or 57,840 km of its road network is paved. Current conditions of Myanmar’s secondary and local road network makes it near impossible to pass during the monsoon season.
RAIL: Myanmar’s rail network spans 5,844 km to its north and south, with some branch lines extending to its east and west. The poor rail network conditions, coupled with the slow train speed that operates around 12 – 24 kilometers per hour, limits the likelihood to transport passengers and freight by train. For example, it can take up to 9 hours to travel between Yangon and Naypyidaw by rail, whereas it takes around 5 hours by road. Investments for track renewal, replacement of sleepers, upgrading of signaling and communications systems and other basic infrastructures to this day remains inadequate. AIR: There is a total of 69 airports in Myanmar. However, only 32 of the said 69 are operational with commercial flight services. The country has three international airports in Yangon, Mandalay and Naypyidaw. WATER: Myanmar currently has nine ports located along its western and southeastern coast, all of which are owned and operated by the state. Over 90% of the country’s cargo throughput is handled through the Port of Yangon. In comparison, the remaining eight ports—Sittwe Port, Kyaukphyu Port, Thandwe Port, Pathein Port, Mawlamyine Port, Dawei Port, Myeik Port and Kawthaung Port—are relatively small coastal ports with limited handling capabilities. The country also have one a private multi-purpose container terminal owned and operated by Hutchinson Port Holdings known as the Myanmar International Terminals Thilawa (MITT). Moreover, it is also in process of undergoing a joint development of its first two deep seaport in the southern city of Dawei with Thailand and in the northern city of Kyaukphyu with China.
C asean Investment Series: Myanmar
7
KEY CITIES IN
The national capital
Naypyidaw
Translated as the "Royal Capital", the "Seat of the King" or the "Abode of Kings", Naypyidaw is the capital city of Myanmar. Covering around 7,054.4 square kilometers of land, the city is located between the Bago Yoma and Shan Yoma mountain ranges.
1
MANDALAY
YANGON
MAWLAMYAING
NAYPYIDAW
Center of commercial activities
Yangon
Once the capital of Myanmar before Naypyidaw was named the new capital, Yangon is the country's largest city, most populous and the center of commercial activities.
2
Cultural tourism
Mandalay
As the country’s second largest city and the last royal capital, Mandalay is the economic center of Upper Myanmar and considered the center of Burmese culture.
3
Center for trade
Mawlamyaing
Mawlamyaing is Myanmar’s fourth largest city and is the capital and largest city of Mon State. It is the main trading center and seaport in south-eastern Myanmar.
4
Myanmar’s Key Investment & Trade Milestones
1948
Gained independence from the UK Joined General Agreement on Tariffs and Trade (GATT)
1824
Became a British colonial for 24 years
1962
Socialist Government took power and period of isolation begins
1988
Issued Foreign Investment Law marking the beginning of market liberalization 1995
Joined WTO
1997
Joined ASEAN
1998
Entered BITs with the Philippines
2000
Joined Mekong-Ganga Cooperation
2002
Entered BITs with China
2009
Entered BITs with India
2011
Entered BITs with the Philippines
2012
Entered BITs with Thailand
2014
Entered BITs with Japan Issued Special Economic Zone Law 2015
First free election result in majority for National League for Democracy Opened first Stock Exchange in Yangon
2016
ASEAN integration
SUNRISE SECTORS
TOURISM Visitors from all corners of the world have come
to Myanmar to experience the culture heritage & originality of this newly open country
NATURAL RESOURCES Myanmar’s abundant resources has the potential to generate much wealth for the country, especially in energy production
TELECOMMUNICATIONS Many people are waiting to get connected & participate in online activities
Photo credit: Abercrombie & Kent, UK
Talks Of The People: Getting to Know Burmese
GETTING TO KNOW
Burmese Consumer Behaviors
60% of Burmese have Bachelor’s degree
8% have Master’s degree
Only 2% have a doctorate degree
18% have High School education
7% have a Diploma/Vocational certificate
91% of Burmese graduated from governmental institutes
Very few inhabitants go for private or overseas education
because it can be very expensive
Upper middle class families & expatriates prefer to send their children to international schools
Some high income citizens of Myanmar prefer to send their wards to countries like Singapore or Thailand
Education
Work
31% of Burmese works in private firms
21% are owners of small businesses
7% are self-employed or are medium & large scale business
owners
Many young Burmese got their first jobs in the shopping centers & new business
Commuting
40% travel to work or journey by public transportation
13% travel by taxis or hired cars
33% or some privileged upper income citizen travel to work in
personal cars
8% prefer to walk to their work place
Food & Beverage
Many feel that it is cheaper to have food at home than to buy cooked food or to dine outside
97% like to cook their local traditional recipes for food at home, as well as Thais &
Chinese dishes
28% of the samples prefer to pack their lunch from home
Supper is not very popular
99% prefer to cook their own food at home as a part of their tradition
70% don’t drink alcohol
13% drink vegetable or fruit juice
42.8% drink coffee
28% drink tea
27.5% drink fresh brewed coffee
25.5% drink milk
Healthy
Imported food products from Thailand are trusted in terms of
safety as well as good taste
Average to high income citizens prefer to buy goods from Thailand
Burmese don’t usually eat meat, especially beef
56% don’t eat beef
45% don’t eat pork
Many prefer to consume products that are heathy & organic; more than 40% choose to
have healthy food or organic every day
Korean, Japanese & Western food are less popular
70% never or rarely has seafood despite country’s
riches in seafood resources
70% never or rarely go to shabu shabu or barbeque restaurants
Burmese consumers are Buddhists & strict follow the doctrine, many of
them are vegetarian
80% don’t or rarely eats this kind of food outside their homes
Majority of the males don’t engage in any grooming activities
Only 25% of the male population uses cream or lotions
Another 24% consumes vitamins & supplement for better health & looks
Beauty clinic are becoming popular & are expanding quickly
Most Burmese are not familiar with spa. More than 86% never went to spas
Grooming
Health & Wellness
In case of minor illness, many prefer to buy over the counter medicine to
cure their sickness
Some prefer to see a doctor
Medical insurances are still not prevalent in the Myanmar market
Some also prefer to visit a traditional doctor or take herbal medicines to get better
High income earners usually go for medical service abroad, mainly in
Thailand, Singapore & India
Fashion
Burmese still wears the traditional dress “Longyi”, which is a thin sheet of
cotton or silk cloth wrapped around the waist down to the feet
Younger generations have started thriving for new fashionable trends by embracing
more modern alternatives & outfits
Young Burmese male have a growing taste for the rock music-inspired
clothing & grooming habits
Owning luxurous items that value more than 1,000 US dollars is not very
common
Only 13.5% of Burmese owned 1 – 2 expensive items
Shopping
Many Burmese still prefer shop at fresh market for food ingredients
Myanmar people go shopping at many places depending on their
location
Personal & home care products are mainly bought from convenient store &
super market or hyper markets
Skincare products & cosmetics are bought at supermarkets, hypermarkets, shopping
centers & department stores
Shopping malls & coffee shops are new meeting places for
Myanmar teenagers
TV, magazines & friends are the sources fashion trends for Burmese
Leisure Activities
Reading book is popular leisure activity in Myanmar
94% of never went to night club or bar 60% of Burmese likes to make handcraft & artworks
99.5% watch TV during free time
There are 4 national channels on telecast over the country
Thai & Korean Channels are telecast through cable networks
65% never or rarely played sports, but watch it on television
Sport is not a popular activity
Korean programs or series are the most popular, especially drama series
Travel & Holidays
Most Burmese like to visit villages & farms during holidays to get
closer to nature
Some prefer to travel for medical & wellness purposes
Travelling overseas is not a common practice among Burmese
More than 62% never travel abroad
Popular overseas destinations are ASEAN, as well as China, Japan, South
Korea & Hong Kong
People in Myanmar also like to travel to the Buddhist Pagodas during their free
time or weekends
Home Ownership
Most of the homes in Myanmar are self-build, but some are bought from
developers
Myanmar people prefer traditional living style over western of living
37 % live in the flats & apartments
Hiring designers is not a common for all income groups
67 % of houses in Myanmar are made from bricks & cement, the rest are woods
More than 50 % have air-conditioning in their house
More than 84% of Burmese homes don’t have gardens
Pet Ownership
23% own cats
Owning pets is very common in Myanmar
65% say they don’t like animals
15% own dogs
More than 80% never bring their pets to pet salon
Pet shop & pet grooming services are not popular
Smoking
Smoking is not very popular as it does not reflect a healthy lifestyle
Most of the people prefer not to smoke in public places
Smokers buy the cigarettes from grocery shops, traditional retailers &
convenient stores
Many low income inhabitants chew betel nuts because it’s
cheaper & the traditional way of life
Many are in favor of enforcing a law to prohibit smoking in public places
Personal Finance
97% Burmese people prefer to use cash in their day to day transactions
The use of debit cards & credit cards are not yet widespread
90% don’t own any credit card
Many like to keep money at home than deposit in banks
20% don’t save money at all
25% invest their money in gold
10% of them invest in real estate
Sources: Adapted from Khon Kaen University’s “Consumer behavior habitudes in Yangon, Myanmar”, 2014
GETTING TO KNOW
Burmese Cultural Do’s & Don’ts
DO’s Use “U” (for Mr.) & “Daw” (for
Ms./Mrs.) & say “Mingalarbar” when addressing adults
Speak slowly & clearly
DON’Ts Talk politics & religion in
public
Shout or laugh in the religious places
Speaking
DO’s Accept or give items with right hand
Take off your shoes when you visiting in
other’s home
Do ask permission before taking photographs
Oldest to be served first
DON’Ts Kiss or hug in public
Touch anybody on the head
Step over any part of person
Point fingers at someone
Manners
DO’s Be patient, first few meetings are about getting to know each other
Take time to build relationships &
foster friendships
Keep an open mind, “yes” doesn’t always mean “yes”
Give gifts & return the favor if
received one
Respect for elders, stand up if one enters the room & sit down once
they’re seated
DON’Ts Be aggressive, getting things done through the fast
track can create frustration
DO’s Remove footwear at religious places
Show respect to monks, nuns & novices even if they
are children. Sit lower than them
Treat Buddha images with respect
Hold sacred objects in your right hand or both hands
DON’Ts Point your feet toward the pagoda or a
monk
Put Buddha images or statues on the floor or somewhere inappropriate
Women should not touch monks
Religion
Business
DISCOVER Myanmar
Must See
Photo credit: Voyage Dans Le Monde (top), True Asia Myanmar Travels & Tours (bottom)
On your visit, grab a bike and go for a ride to explore the different pagodas, each with its own character. Not into bike rides, you can also rent a horse or cattle cart and stop at the pagodas at your own leisure. Last but not least. For an unparalleled view of Bagan, hop onto a hot air balloon and watch sun rise and set to truly appreciate the scale of this ancient realm.
Travel back in time and be amazed by the inspiring beauty of Bagan's ancient kingdom. Home to a sea of thousands of pagodas, Bagan was the capital of the First Burmese Empire and was the site that Marco Polo once described as the “gilded city”. Today, Bagan is known as Myanmar’s most popular tourist destinations and Asia’s richest archaeological sites. The site’s beauty is in close competition to Cambodia’s Angkor Wat and Peru’s Manchu Picchu.
BAGAN THE SEA OF PAGODAS
The Golden Rock or locally known as Kyaiktiyo Zedi is one of the awe-inspiring sight to behold in Myanmar. Just a five-hour drive from Yangon, the site is a pilgrimage for Myanmar Buddhists. Covered in gold leaves, a pagoda sit atop a huge boulder that sits 1,100 meters above sea level appearing as if it’s about to fall off the edge of a cliff. To many locals, the boulder is believed to be held in place through a miracle of Buddha, and the pagoda is said to contain a strand of his hair.
KYAIKTIYO ZEDI THE GOLDEN ROCK
Photo credit: Myanmar Tourism Federation
Shwedagon Pagoda Nestled in the heart of the former capital, Yangon, Shwedagon Pagoda's gleaming stupa greets its visitors with a golden exclamation. Visible from almost anywhere in the city, the pagoda is the most sacred of all Buddhist sites in Myanmar. A great contrast from Yangon's commercial vibe, the interior of this temple is eerily quiet and solemn, fit for those looking for tranquility in a crowded city. Don't forget to bring your sunglasses as the golden stupa and white marble can truly shine light on any pilgrim!
As the former national capital, Yangon is Myanmar's largest, most populous and most commercially important city. Its downtown skyline and horizon is dominated by the gleaming wonders of Shwedagon Paya, a dazzling Buddhist temple that attracts pilgrims from all corners of the world.
YANGON THE FORMER CAPITAL
Located at the heart of the former capital, Yangon, Shwedagon Pagoda's gleaming golden stupa is visible from almost anywhere in the city. Containing a strand of Buddha’s hair and other religious relics, this 2,500-year-old pagoda is the most sacred of all Buddhist sites in Myanmar. Added over the centuries, numerous temples, statues and stupas can be found at this unforgettable site. The Shwedagon Pagoda offers the perfect getaway for tranquility in a crowded city.
SHWEDAGON PAGODA GREATER DRAGON PAGODA
Photo credit: Myanmar Explorers (top), Hotels Myanmar (bottom)
Acknowledged as Myanmar’s national dish, mohinga is rice noodles served in herbal fish and shallot based broth. Often supplemented with the crunchy pith of the banana tree, its toppings also include sliced hard-boiled egg and akyaw, deep-fried crispy veggies and disks of lentil batter. For an extra flavor, add a squeeze of lime or flakes of dried chilies for a flavorful breakfast.
MOHINGA THE NATIONAL DISH
DISCOVER Myanmar
Must Eat
Photo credit: SBS, Australia
Traditional serves as a breakfast, hto-hpu nwe is another must-try dishes of the Shan people of northern Myanmar. Although its name is literally translated as “warm tofu”, the dish is not made from tofu, but rather locally grown chickpeas. The actual tofu-like thick porridge is made from chickpea flour and topped with a drizzle of chili oil. Chunks of marinated chicken or pork is added.
HTO-HPU NWE WARM TOFU SOUP
Nga htamin or fish rice is one of the most popular dishes among the Shan people, an ethnic minority in Myanmar. This special dish is cooked by mixing rice with fresh turmeric, which is later squashed into a plate. Garlic oil and flakes of freshwater fish—originally be marinated in garlic and chili peppers—is then put on top. This Shan-style fish rice is usually serve with leek roots, deep-fried pork rinds, and cloves of raw garlic. Its oily and savory flavor makes it a snack offers a wide range of flavors from pungent to spicy.
NGA HTAMIN SHAN-STYLE FISH RICE
Photo credit: Pinterest (top), SBS, Australia (bottom)
LEQ-P’EQ BURMESE TEA LEAF SALAD
One of the most popular dishes in Myanmar is the leq-p’eq or the Burmese tea leaf salad. Unlike the typical salad you usually come across, tea leaves are not the main component of the salad, but they are rather the dressing. Known to locals as Lephet, the dressing is made from fermenting tea leaves underground for a period of weeks, giving off quite earthy and tangy flavor. Usually eaten as dessert, this dish is mixed by hand alongside shredded cabbage, sliced tomatoes, crunchy deep-fried beans, nuts and peas, a splash of garlic oil and pungent slices of chili and garlic. Its taste is a little sour and slightly bitter.
Photo credit: Veggiestorial (top), Buffalo.com (bottom)
MYANMAR TEA SHOPS On your trip to Myanmar, one of the place you should not miss is a local tea shop. Apart from being the place that stop by for an enjoyable cup of tea, coffee or milk, tea shops across Myanmar is good place for you to dig into gastronomic culture and local lifestyle. Photo credit: Vagabondinasia.com