PwC Myanmar Weekly Business Intelligence€¦ · China-Myanmar border trade fair KUNMING, Dec. 14 (Xinhua) —From traditional marionettes and wood carvings to handmade carpets depicting

PwC MyanmarWeekly Business Intelligence

Issue 19328 December 2019

www.pwc.com/mm

PwC | December 2019

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PwC | December 2019

1. Weekly Key Financial & Business News

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PwC | December 2019

Weekly Key Financial & Business NewsHeadlines

Telecom sector fuels Myanmar’s economy

Myanmar’s sea trade reaches over 4.8 billion U.S. dollars

Myanmar earns over US$2 B from border trade

Natural gas exports up $150 mln in two months

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China Focus: Entrepreneurs seek opportunities at China-Myanmar border trade fair

PwC | December 2019

Weekly Key Financial & Business NewsHeadlines

IMF sees stable growth but risks lie ahead for Myanmar

Fuel oil imports up 120,000 tons in current fiscal

Garment exports on track to meet 10-year target

5

Thailand approves loan for Myawaddy development

Power sector tops FDI line-up in current fiscal

PwC | December 2019 6

China Focus: Entrepreneurs seek opportunities at China-Myanmar border trade fair

KUNMING, Dec. 14 (Xinhua) — From traditionalmarionettes and wood carvings to handmadecarpets depicting Bagan’s renowned pagodas andstupas, Myanmar exhibitor Thet Thet Naing wasmore than proud to showcase her country’s besthandicrafts at a border trade fair in thesouthwestern Chinese city of Ruili.Thet Thet Naing, a trade promotion officer fromthe Yadanarbon Trade Center in Mandalay, saidshe was attending the ongoing 18th China-Myanmar Border Economic and Trade Fair for thesecond time, and has brought more types oftraditional handicrafts to impress Chinesevisitors.“We’ve received many orders for our customizedcarpets from Chinese hotels thanks to the fair inRuili,” she said. “I hope this year’s fair will letmore Chinese visitors and exhibitors know aboutMyanmar’s cultural products.” Thet Thet Naing isamong a large number of domestic and overseasexhibitors who have flocked to the fair to displaymore than 2,000 kinds of items at over 500booths, representing a record high in the event’shistory. This year’s fair runs from Dec. 10 to 16.

So far, a total of 24 projects with investmenttotaling nearly 20 billion yuan (2.8 billion U.S.dollars) have been signed at the fair. The projectscover tourism, agriculture, logistics, woodprocessing and other areas.“The fair has become a model of bilateralcooperation since it was inaugurated in 2001,”said Zhao Gang, Party secretary of Dehong Daiand Jingpo Autonomous Prefecture, whichadministers Ruili. He added that the fair hasgreatly contributed to the development ofbilateral trade and benefited the people in theborder areas.Cross-border trade between Dehong andMyanmar has entered the fast lane ofdevelopment in the past few years, with the tradevolume surging over 10 times from 2001 to reach31.5 billion yuan in 2018, according to officialdata.Source: Consult Myanmarhttps://consult-myanmar.com/2019/12/18/china-focus-entrepreneurs-seek-opportunities-at-china-myanmar-border-trade-fair/

NewspapersConsult Myanmar

18 Dec 2019

https://consult-myanmar.com/2019/12/18/china-focus-entrepreneurs-seek-opportunities-at-china-myanmar-border-trade-fair/


Myanmar’s sea trade reaches over 4.8 billion U.S. dollars

Myanmar's trade through sea routes reached over4.8 billion U.S. dollars as of Dec. 6 in presentfiscal year (FY) 2019-2020 which started inOctober, Xinhua reported.In over two months, the country earned over 2billion U.S. dollars from maritime export while itsimport amounted to over 2.8 billion U.S. dollars.This FY's sea trade increased by 482.8 millionU.S. dollars, compared to the same period of lastFY 2018-2019 when it was 4.3 billion U.S. dollars.

Source: Mizzima Newshttp://mizzima.com/article/myanmars-sea-trade-reaches-over-48-billion-us-dollars

NewspapersMizzima News

18 Dec 2019


Telecom sector fuels Myanmar’s economy

Telecoms-related sectors contributed up to three-quarters of economic growth in countries likeMyanmar, Thailand, Malaysia, Pakistan andBangladesh, a Telenor-commissioned report byLondon-based consultancy Frontier Economicsfound.With the telecom industry growing at 6-12percent annually, faster than the GDP growthrates of many Asian developing economies, theindustry is a “prime contributor” to economicdevelopment in the five countries, said HansMartin Hoegh Henrichsen, Telenor Myanmar’schief corporate affairs officer.The report titled “The Mobile Effect: HowConnectivity Enables Growth” looks at the impactof the telecommunications sector in the five Asiancountries which Telenor operates in.“Our analysis shows that sectors which usetelecommunications services more intensivelycontribute between 65 to 75pc of total economicvalue to the markets across Telenor’s Asianfootprint,” said Clive Kenny, Frontier Economics’senior economic consultant inTelecommunications, in a statement. In

Myanmar, the telecoms industry is estimated tohave added some US$785 million in economicvalue to the country.Myanmar has seen a spike in mobile penetrationrates, with subscriptions per 100 people havingskyrocketed from 13pc in 2014 to 124pc in 2019. Itis estimated that up to 65 million people inMyanmar hold SIM cards. This can be partlyattributed to the opening up of the telecomindustry by the Thein Sein administration.

Source: Myanmar Timeshttps://www.mmtimes.com/news/telecom-sector-fuels-myanmars-economy.html

NewspapersMyanmar Times

18 Dec 2019


Myanmar earns over US$2 B from border trade

Myanmar has earned US$2.015 billion fromborder trade from October 11 to December 6 inthis fiscal year and it is more US$500 million incompared with the same period in the last fiscalyear, according to the Ministry of Commerce.It earned US$1.147 billion from the Muse bordertrade center in this period.Border trade centers in Myanmar are Muse,Lweje, Chinshwehaw, Kanpiketi, Kengtong,Techilek, Myawady, Kawthoung, Myeik,Nabule/Htikhi, Mawtaung, Maese, Sittwe,Maungdaw, Tamu, Reik, Htantalan, andKyainglek.Myanmar is expecting to earn US$34 billion fromthe trade sector in 2019-20 FY and US$18 billionfrom the export sector, said Dr Than Myint,Union Minister for Commerce in an interviewwith media in Myanmar EntrepreneurshipSummit 2019 held at Fortune Plaza on November16."To boost trade, we need to improve both quantityand quality. In import sector, we need to importmore capital goods that can generate sustainableeconomy,” he said.

Source: Eleven Myanmarhttps://elevenmyanmar.com/news/myanmar-earns-over-us2-b-from-border-trade

NewspapersEleven Myanmar

20 Dec 2019


Natural gas exports up $150 mln in two months

Myanmar’s exports of natural gas over the pasttwo months of the current financial yearamounted to US$579 million, an increase of about$150 million compared with the correspondingperiod of the 2018-2019 fiscal, according to theCommerce Ministry.In the year-ago period, the country exportednatural gas worth about $430 million.The increase in the value of exports is linked tothe rise in the price of natural gas in the globalmarkets, according to an expert.Natural gas is included in the list of major exportitems of Myanmar. Over 20 per cent of thecountry’s total export earnings come from the saleof natural gas.Total natural gas production from inland blocksand offshore blocks in the third year of theincumbent government’s rule is estimated at623.838 billion cubic feet, according to a pressstatement on the Ministry of Electricity andEnergy’s third-year performance.The Shwe natural gas field, located offshore fromRakhine State, was discovered in 2014. Naturalgas extracted from the field is exported to China.

The Yadana natural gas project is being carriedout by the TOTAL Company, with its pipelinesupplying natural gas to Thailand. Natural gas isalso extracted in Yedagon, located offshore fromTaninthayi and discovered in 1992. The ZawtikaProject in the Gulf of Moattama mainly suppliesnatural gas to neighboring Thailand.Production at Yadana and Yedagon is declining,and those projects will be halted in the comingyears.According to the second five-year NationalDevelopment Plan (from 2016-2017 to 2020-2021), the Yadana, Yedagon, Zawtika, and Shwegas projects are expected to collectively produceover 630 billion cubic feet of natural gas in the2019-2020 fiscal year.As per data from the Ministry of Electricity andEnergy, there are over 104 oil and gas blocks inMyanmar: over 51 offshore blocks and 53 inlandblocks.

Source: Global New Light of Myanmarhttps://www.globalnewlightofmyanmar.com/natural-gas-exports-up-150-mln-in-two-months/

NewspapersGlobal New Light of Myanmar

23 Dec 2019


Power sector tops FDI line-up in current fiscal

Foreign direct investment of over US$500 millionhas flowed from two enterprises into the powersector in the past two months of the current fiscalyear, according to statistics provided by theDirectorate of Investment and CompanyAdministration (DICA).The quantum of investment in power is higherthan in any other sector.Between 1 October and 30 November, FDI of$1.027 billion, including expansion of capital, hasflowed into the country. The MyanmarInvestment Commission (MIC) and theinvestment committees of states and regions haveallowed 39 enterprises to invest in the country.The manufacturing sector has absorbed FDI of$85 million from 29 projects in the current fiscal.The livestock and fisheries sector has drawn twoforeign investment projects worth $6.58 million.One project worth $0.4 million has beenapproved in the transport and communicationssector.The real estate sector has also raked in $417million from two foreign projects. Over $13.97million in FDI has been pumped into the other

services sector.In the current fiscal, the MIC has set an FDItarget of $5.8 billion. In the 2018-2019FY, FDIinto Myanmar totaled $4.5 billion, falling short ofthe $5.8-billion target by around $1.3 billion.Foreign direct investment into Myanmar wasregistered at $1.76 billion in the last mini-budgetperiod, $5.7 billion in the 2017-2018FY, $6.6billion in the 2016-2017FY, and $9.4 billion in the2015-2016FY.

Source: Global New Light of Myanmarhttps://www.globalnewlightofmyanmar.com/power-sector-tops-fdi-line-up-in-current-fiscal/


23 Dec 2019


Fuel oil imports up 120,000 tons in current fiscal

Myanmar imported about one million tons ofdiesel and petrol worth nearly US$600 millionover the past two months of the current financialyear, according to the Ministry of Commerce.In the year-ago period, the country had importedabout 870,000 tons of fuel worth $607 million,according to the ministry.As of 6 December, the import volume was up120,000 tons, but the import value plunged by $8million compared to the corresponding period ofthe previous fiscal owing to lower prices.In the current financial year, Myanmar imported600,000 tons of diesel and 390,000 tons ofpetrol, as per data provided by the CommerceMinistry.Yesterday, the price of Brent crude oil ranged at$65 per barrel, while WTI crude was pricedaround $60 a barrel, according to global oilmarkets.The price of Octane 92 was pegged at K830-885,Octane 95 at K940-975, diesel at K910-965, andpremium diesel at K920-975 yesterday in thedomestic retail market, according to local fuel oilmarket.

As oil prices extended their drop in the globalmarket following the escalating US-China tradewar, domestic fuel oil price has seen a gradualdecline since early June. On 10 October, 2018, onaccount of an increase in global crude oil pricesand the Kyat weakening against the US dollar, oilprices had hit a high of K1,065 per liter for Octane92, K1,115 for Octane 95, K1,085 for diesel, andK1,105 for premium diesel.On 1 January, domestic fuel oil touched a low ofK695 for Octane 92, K760 for Octane 95, K870 fordiesel, and K875 for premium diesel. By April, theprice surged to above K1,000 per liter and thenplunged below K1,000 in June, according to localoil market.

Source: Global New Light of Myanmarhttps://www.globalnewlightofmyanmar.com/fuel-oil-imports-up-120000-tons-in-current-fiscal/


24 Dec 2019


IMF sees stable growth but risks lie ahead for Myanmar

Myanmar’s economy is growing steadily but heldback by uncertainty ahead of next year’s generalelections and weaker private demand, accordingto the International Monetary Fund.IMF economists carrying out annual Article IVconsultations in Myanmar reiterated warningsmade last April that “risks are tilted to thedownside” and cited concerns over fallout fromthe Rakhine crisis and weaknesses in the bankingsector. "On the domestic front, growth couldunderperform if fiscal spending does notaccelerate sufficiently. Delayed restructuring andrecapitalisation of the banking system couldincrease systemic risks with large macro financialspillovers. A deterioration of the security situationand continued humanitarian issues in Rakhinecould weigh on sentiment,” the IMF said in astatement following last week’s visit. Rising tradetensions and global market volatility, highercrude oil prices and spillovers from a slowdown inChina remain risks from abroad.The IMF estimates growth of 6.5pc in 2018-19, upslightly from 6.4pc in 2017-18 on account ofcontinued good export performance, particularly

of garments and gas, despite global headwinds.Foreign direct investment inflows and projectapprovals, it warns, remain lower than in recentyears because large projects have been completedand foreign investors remain cautious ahead ofthe 2020 elections.“For 2019-20, growth is expected to be broadlystable with higher government spending largelyoffset by pre-election uncertainty and weakerprivate demand,” the Fund said. Myanmar isscheduled to hold parliamentary elections in late2020.

Source: Myanmar Timesmmtimes.com/news/imf-sees-stable-growth-risks-lie-ahead-myanmar.html


24 Dec 2019


Garment exports on track to meet 10-year target

Myanmar is on track to meet its target of drawingUS$10 billion worth of textile exports by 2024, anofficial from the Myanmar GarmentEntrepreneurs Association (MGEA) told statemedia.The target was set as part of Myanmar’s ten-yearexport strategy in 2014. During fiscal 2018-19,the textile manufacturing sector generatedUS$4.6 billion in export revenue, making upnearly 10 percent of the country’s exportrevenues, according to the Ministry of Commerce.This fiscal year, officials are expecting textileexport revenues to reach US$5 billion.Myanmar exports its garments and textiles mainlyto Europe, Japan and South Korea. Currently, theindustry’s earnings average US$300 million peryear.If manufacturers make a shift from the Cut, Make,Pack (CMP) production system to a free on board(FOB) system, annual earnings could swell ten-fold should demand remain at the current level,the MOC said.Under a CMP system, all raw materials, such asfabric and buttons are imported by the local

factories, which then assemble the garments forexport.Under an FOB system, the exporter quotes the aprice that includes all costs, including delivery ofgoods aboard an overseas vessel. The local factoryis responsible for the whole production process.Under the export plan, employment in theindustry is also expected to hit a million workersby 2024. The MGMA estimates that around 600factories in the country now offer jobopportunities to approximately 500,000 workers.

Source: Myanmar Timeshttps://www.mmtimes.com/news/garment-exports-track-meet-10-year-target.html


26 Dec 2019


Thailand approves loan for Myawaddy development

The Thai Cabinet has approved a preferential loanworth 777 million THB (over 25.76 million USD)under a 30-year contract for Myanmar forinfrastructure development in Myawaddy city,vietnamplus reported.Government deputy spokeswoman RatchadaThanadirek said the Cabinet meeting onDecember 24 endorsed a proposal for theNeighbouring Countries Economic DevelopmentCooperation Agency (NEDA) to provide financialassistance for Myanmar to fund the third phase ofthe Greater Mekong Sub-region developmentproject for Myawaddy.The loan has an annual interest rate of 1.5 percentand a grace period of 10 years, she said.

Source: Mizzima Newshttp://mizzima.com/article/thailand-approves-loan-myawaddy-development


26 Dec 2019

PwC | December 2019

2. Weekly Key Policy News

16

PwC | December 2019

Weekly Key Policy NewsHeadlines

Officials reassure business over controversial draft trade law

Draft bill on alcohol imports near completion

Int’l Media Shows Lack of Fairness, Ignores State Counsellors' Message to the ICJ

17

Japan Backs Myanmar’s Claim That No Genocide Occurred in Rakhine State

Myanmar’s Movers and Shakers of 2019


Officials reassure business over controversial draft trade law

Myanmar’s heavily criticised draft trade law willnot burden companies with another layer ofbureaucracy and may be amended beforesubmitting to the cabinet and then parliament,according to senior officials.Trade Department Director-General U MinnMinn told The Myanmar Times in Nay Pyi Tawthat the legislation was still in the consultationprocess and would be referred to the AttorneyGeneral within four months, by mid-April and theMyanmar new year. Lawyers for the World Bankand Germany’s development agency GIZ wereinvolved in the process, he said.U Minn Minn stressed that the department heldvarious consultation workshops with the WorldBank, USAID and other partners, as well asbusiness chambers and associations.“Some of the people say that you should amendsome areas. We are still collecting [the feedback],”he said, clarifying that the legislation did not yethave the status of a bill.Trade officials stressed that, contrary to whatsome lawyers argued, the law would streamlineprocedures for investors, improve the ease of

doing business, enhance transparency and helpfacilitate trade.The legislation was drafted in English andtranslated into Myanmar language, before beingtranslated back to English. “Because of the severaltranslation steps, some meanings may be changedor not lawful or something like that,” he said.U Minn Minn was responding to concernsexpressed by business executives, as reported byThe Myanmar Times, that the law would requiremany companies to submit to another layer ofgovernment approval and enable ministries tofurther regulate broad areas of the economy.

Source: Myanmar Timeshttps://www.mmtimes.com/news/officials-reassure-business-over-controversial-draft-trade-law.html


22 Dec 2019


Draft bill on alcohol imports near completion

Legislation intended to relax Myanmar’s existingban on alcohol imports has moved to the attorneygeneral for approval, according to the commerceministry.Trade Department Director-General U MinnMinn told The Myanmar Times that the ministryhad finished drawing up the regulations and oncethe draft legislation was approved by the attorneygeneral it would be presented to the cabinetbefore going to parliament. The latest version ofthe draft bill has not been made public.Imports of spirits have been tightly restricted inMyanmar since 1962. The current ban wasintroduced by the military government in 1995. UThein Sein’s government permitted the import ofwines in late 2015, but only hotels and duty-freeoutlets have been allowed to import spirits andbeer.Last June commerce ministry assistant secretaryU Khin Maung Lwin told this newspaper that theministry would come up with draft legislationwithin this year to allow a partial liberalisation ofthe market, giving reasonable room for foreignliquors to enter under some restrictions.

According to the draft Excise Law received bybusiness in May and seen by The MyanmarTimes, businesses that want to import, distributeand sell any kinds of liquor would need approvalfrom the military-controlled home affairsministry, the General Administration Department(GAD) and a new Excise Policy Committee.The GAD will have the authority to issue licencesin relation to production, storage, transport anddistribution. It is unclear which authority wouldbe responsible for import licences.

Source: Myanmar Timeshttps://www.mmtimes.com/news/draft-bill-alcohol-imports-nears-completion.html


23 Dec 2019


Int’l Media Shows Lack of Fairness, Ignores State Counsellors' Message to the ICJ

When Daw Aung San Suu Kyi led Myanmar’sdelegation at public hearings before the 17-member bench in the Great Hall at theInternational Court of Justice on Dec. 10, she wasat the center of international media attention.“Impassively” became the word of the day as,under their watchful eyes, she listened to theGambian team argue its case that Myanmarcommitted genocide against the Rohingya; theinternational media frenzy had begun.That frenzy reached its peak the next day, a fewhours after she defended the country against thecharges before the court.The Gambia accused Myanmar of violating the1948 Genocide Convention over militaryclearance operations in northern Rakhine State,which caused more than 700,000 Rohingya toflee the Southeast Asian country for Bangladesh.The African country asked the ICJ to order“provisional measures” to prevent moreviolations. In her nearly 25-minute oralargument, Myanmar’s de facto leader didn’tdispute that amid the armed conflict in Rakhinethere may have been violations of human rights

and infringements of universally accepted normsof justice and the rule of law during the militaryresponse to the Arakan Rohingya SalvationArmy’s attacks on security outposts. But sheannounced firmly that those crimes didn’t amountto genocide and that those involved in war crimeswould be tried by local military courts.“Only if domestic accountability fails, mayinternational justice come into play,” she said.It was no surprise to see international mediacrying out with headlines like “Aung San Suu KyiDefends Myanmar Against Genocide Claims”—it’sunderstandable that they would focus on this tograb readers’ attention, and it’s true that shedenied genocide in her argument.However, reading the news coverage of thehearings—from my random picks of the FinancialTimes, The New York Times, The Wall StreetJournal, The Economist, The Guardian and TheAssociated Press—left me with an uneasy feeling.Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/japan-backs-myanmars-claim-no-genocide-occurred-rakhine-state.html

NewspapersThe Irrawaddy

23 Dec 2019


Japan Backs Myanmar’s Claim That No Genocide Occurred in Rakhine State

YANGON—Amid mounting internationalcriticism of Myanmar State Counselor Daw AungSan Suu Kyi over her denial of genocideallegations at the International Court of Justice(ICJ), the Japanese ambassador to Myanmar saidhis government firmly believes that no genocidewas committed in the country, and expressedhope that the court will reject The Gambia’srequest that provisional measures be takenagainst Myanmar.Japan has become the first country to voicesupport for Myanmar since the Southeast Asiancountry’s legal team testified at the World Court,where The Gambia filed a case of genocide overthe Rohingya crisis. Other countries including theNetherlands and Canada have stated that in orderto uphold international accountability andprevent impunity, they “consider it theirobligation to support The Gambia before the ICJ,as it concerns all of humanity.”“I don’t think that the Myanmar Tatmadaw[military] committed genocide or [had the] intentof genocide. I also don’t think that they haveintention to kill all the Muslim residents in

Rakhine,” said Ichiro Maruyama, the Japaneseambassador to Myanmar, on Thursday.He said the actions by the Tatmataw came inresponse to a series of attacks by the ArakanRohingya Salvation Army (ARSA) on policeoutposts in 2016 and 2017.Echoing what Daw Aung San Suu Kyi said at theWorld Court, the ambassador said Japan doesn’trule out the possibility that human rightsviolations occurred in Rakhine State duringclashes between the military and ARSA.

Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/japan-backs-myanmars-claim-no-genocide-occurred-rakhine-state.html


27 Dec 2019


Myanmar’s Movers and Shakers of 2019

2019 was another difficult year for Myanmarinternationally, with the aftermath of theRohingya crisis continuing to make headlines,climaxing with Daw Aung San Suu Kyi’s defenseof the country against a genocide lawsuit at theInternational Court of Justice. At home, the peaceprocess foundered as the military battled ethnicarmed groups in the west and northeast, while theruling National League for Democracy fought themilitary in Parliament over charter change. Abesieged Tatmadaw pushed back, locking up astring of its most vocal critics, while thegovernment launched legal action againstBuddhist nationalists. The government continuedto bet on Chinese investment to revive theeconomy, formally partnering with Beijing on itsBelt and Road projects in Myanmar. The shockingrape of a 2-year-old at a nursery school in thecapital engrossed the nation and revived concernsabout the justice system. But there were positivestories as well, as Myanmar unified around theexploits of its star MMA fighter and cheered onthe efforts of a rising badminton star. Meanwhilethe country’s young entrepreneurs, artists—and

even a champion bartender—made waves in theregion and beyond.Daw Aung San Suu Kyi — A New Role as Defenderof the NationUntil The Gambia filed a lawsuit at theInternational Court of Justice in Novemberaccusing Myanmar of genocide against theRohingya, Myanmar State Counselor Daw AungSan Suu Kyi was preoccupied with domestic chaoson nearly all fronts. Her party has little to showfor its attempt to amend the Constitution. Theeconomy is stagnant.Senior General Min Aung Hlaing—In the Hot SeatFor Myanmar military chief Senior General MinAung Hlaing, 2019 seems to have been a haplessyear. International calls for his and hissubordinates’ prosecution at the InternationalCriminal Court and elsewhere over thepersecution of Rohingya Muslims intensified.

Source: The Irrawaddyhttps://www.irrawaddy.com/news/burma/japan-backs-myanmars-claim-no-genocide-occurred-rakhine-state.html


27 Dec 2019

PwC | December 2019

3. Weekly Investment News

23

PwC | December 2019

Weekly Key Investment NewsHeadlines

POSCO sets up solar power system on Myanmar’s Manaung Island

Hong Kong investments in Myanmar cross $800 mln in Oct-Nov

YRIC approves Hong Kong and China to invest in the region

24

Facebook Partners with Httpool as Authorized Sales Partner in Myanmar, Cambodia and Laos

South Korean firm invests in Bago power project


POSCO sets up solar power system on Myanmar’s Manaung Island

POSCO International announced it has completeda photovoltaic power generation system onManaung Island near the Myanmar Gas Field.Manaung Island is home to more than 60,000residents, but its power infrastructure is poorwith only three small generators, according to thecompany.This time, POSCO International set up a solarpower system that combines a 500 kW solarpower generation facility and 2,000 kWh energystorage system (ESS). The new facilities can stablysupply electric power to about 1,000 householdson Manaung Island 24 hours a day. The powersupply is expected to enhance the operation ofsanitation facilities such as public health centersand residents’ productivity in agriculture andfisheries, ultimately making a big improvement totheir quality of life, according to a press release.Daewoo International is also planning to build a500 MW or larger power plant that can utilize gasimported through Kyaukpyu LNG ImportTerminal. It is promoting this project as anindependent power producer.

Source: Mizzima Newshttp://mizzima.com/article/posco-sets-solar-power-system-myanmars-manaung-island


22 Dec 2019


Hong Kong investments in Myanmar cross $800 mlnin Oct-Nov

Three Hong Kong-based companies pumped inUS$802.47 million into Myanmar in October andNovember in the 2019-2020 financial year,according to the Directorate of Investment andCompany Administration (DICA).Hong Kong topped the list of investors during thepast two months and was followed by Singapore,which invested an estimated $142.8 million in twoprojects. Foreign direct investments (FDI) of over$1 billion flowed into Myanmar in the past twomonths. Besides Hong Kong and Singapore,investments also flowed into the country fromJapan, Thailand, India, Malaysia, China, the UK,and China (Taipei).The DICA intends to meet its FDI target of $5.8billion in the current fiscal year.“South East Asian countries see investmentpotential in Myanmar on account of cheap labourand business opportunities. Thus, larger entitiesare likely to enter the country,” said U Thant SinLwin, director-general of the DICA.“We see much investment potential for largecompanies. We are prioritizing responsiblebusinesses and so, we are taking special care

while screening investment proposals,” he said.Large investments are likely to flow into the oiland gas, agriculture, mineral, manufacturing, andindustrial estate sectors, he added.The economic interaction between Myanmar andHong Kong has been increasing rapidly. HongKong has emerged as the third largest investor inMyanmar, after Singapore and China. Between1988 and October, this year, 199 enterprises fromHong Kong brought in foreign direct investmentof $8.48 billion into Myanmar, according toofficial data on existing enterprises provided bythe Directorate of Investment and CompanyAdministration.

Source: Global New Light of Myanmarhttps://www.globalnewlightofmyanmar.com/hong-kong-investments-in-myanmar-cross-800-mln-in-oct-nov/


23 Dec 2019


YRIC approves Hong Kong and China to invest in the region

Companies from Hong Kong and China areallowed to make investments worth overUS$17.47 million in businesses that produceshoes, bags, hand gloves, different kinds of toysand FFC cables for the telecommunication sectorunder the CMP system, according to YangonRegion Investment Committee (YRIC).The committee approved the endorsement at20/2019 of the YRIC meeting.Colorado Outdoor Gear (Myanmar) Limited fromHong Kong invested US$1.16 million to producebags under CMP system in MyaseinyaungIndustrial Zone in Hlaing Thayar Township andSunny Arts & Crafts Company Limited from Chinainvested US$1.2 million worth of investment toproduce toys under CMP system in MyaseinyaungIndustrial Zone in Hlaing Thayar Township.Vogue (Myanmar) Industry Limited from Chinainvested US$0.789 million to produce bags underCMP system in an Industrial Zone in East DagonTownship and Hongho Telecommunication(Myanmar) Company Limited from Chinainvested US$2.5 million worth of investment toproduce FFC cables used in telecommunication

sector under CMP system in an Industrial Zone inEast Dagon Township.Jia Xin (Myanmar) Garment Company Limitedfrom China invested US$3.5 million to produceclothes under CMP system in Wartayar IndustrialZone in Shwepyitar Township, Sunlong(Myanmar) Sports Company Limited from Chinainvested US$1.2 million worth of investment toproduce bags under CMP system in ThadukanIndustrial Zone in Shwepyitar Township andPoushing Company Limited from Hong Konginvested US$1 million to produce clothes underCMP system in Wartayar Industrial Zone inShwepyitar Township.

Source: Eleven Myanmarhttps://elevenmyanmar.com/news/yric-approves-hong-kong-and-china-to-invest-in-the-region

NewspapersEleven Myanmar

24 Dec 2019


Facebook Partners with Httpool as Authorized Sales Partner in Myanmar, Cambodia and Laos

Facebook has selected Httpool as its AuthorizedSales Partner in Myanmar, Cambodia and Laos.As the official partner for Facebook in these threecountries, Httpool will provide support andregional expertise to local businesses acrossFacebook, Instagram, Facebook Messenger andWhatsApp.Partnering with Facebook in the APAC region wasa natural transition for Httpool. The company isalready Facebook’s Authorized Sales partner inseven markets across Europe, and the Httpoolteam in APAC is committed to providing a first-rate service to Facebook’s existing and new clientsin the region.“Following the successful expansion of our salesteams in Southeast Asia, we have appointed anAuthorized Sales Partner to handle Myanmar,Cambodia and Laos. At Facebook, we recognizethat this is a prime opportunity to help localagencies and advertisers in these countries toreach greater audiences and to engage inmeaningful conversations with people, and tohelp further the potential of local businesses inMyanmar, Cambodia and Laos,” said Jordi

Fornies, Director Emerging Markets APAC,Facebook.“This partnership is further proof of Httpool’sleading position in the world as a partner of majorsocial media platforms, and our overall success inthe APAC region. We are excited to build on ourexperience from Europe and assist Facebook inintroducing the latest advertising solutions toMyanmar, Cambodia and Laos, and providebrands and agencies first hand support at thehighest execution level,” said Sunny Nagpal, Co-founder & Managing Director of Httpool APAC.

Source: Consult Myanmarhttps://consult-myanmar.com/2019/12/24/facebook-partners-with-httpool-as-authorized-sales-partner-in-myanmar-cambodia-and-laos/

NewspapersConsult Myanmar

24 Dec 2019

https://consult-myanmar.com/2019/12/24/facebook-partners-with-httpool-as-authorized-sales-partner-in-myanmar-cambodia-and-laos/


South Korean firm invests in Bago power project

South Korea’s MCM Power Company will investover US$35 million on a power generation anddistribution project in Pyay township, Bago,according to U Thant Sin Lwin, Director-Generalof the Directorate of Investment and CompanyAdministration (DICA).The gas-powered project is expected to generate40MW of electricity.Interest in the Myanmar power sector from HongKong, Singapore and China-based firms has risenand more are expected to channel funds intoboosting the power sector, U Thant Sin Lwin said.In early December, Hong Kong-listed CNTICVPower Company was permitted to invest half abillion dollars to execute similar power projects inThaketa, Yangon and Kyaukphyu, Rakhine,according to DICA.VPower will invest $363 million in the generationof 400MW of electricity in Yangon and theremainder to generate 150MW in Rakhine. Theprojects will be powered by liquefied natural gasand based on Build, Operate and Ownagreements.Since 1988, a total of 21 enterprises have invested

$15.6 billion in the power sector, according todata provided by DICA.

Source: Myanmar Timeshttps://www.mmtimes.com/news/south-korean-firm-invests-bago-power-project.html


27 Dec 2019

PwC | December 2019

3. Weekly New Tenders

30

PwC | December 2019

MOEE: Invitation for Bids: Design, Supply, and Installation of 230kV Min Hla – AthokeTransmission Line (101) miles and 230 kV Switch Bay (3)Nos, Closing date: 06 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

MOEE: Invitation for Bids: Design, Supply, and Installation of 132 kV Upper Kengtawng – NamsangTransmission Line (37) miles, Closing date: 10 Feb 2020

http://www.mmtimes.com/

https://tender.yangon.gove.mm/

http://consult-myanmar.com/

http://www.myanmar-opportunities.org/mm/tenders

http://www.buildersguide.com.mm/en/

PwC | December 2019

WB: Delivery of Social Risk Management and Resettlement Course in Myanmar, Closing date: 13 Jan 2020

WB: Regional Solutions for Financial Protection of Public Assets in Southeast Asia, Closing date: 08 Jan 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

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WB: Delivery of a Health Impact Assessment Training Course in Myanmar, Closing date: 13 Jan 2020

ADB: LOAN 47152-002 MYA: Irrigated Agriculture Inclusive Development Project (International Financial Management Specialist [IFMS] - 1 Person), Closing date: 27 Jan 2020

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/

PwC | December 2019

ADB: LOAN 47152-002 MYA: Irrigated Agriculture Inclusive Development Project (International Procurement Specialist [IPS] - 1 Person), Closing date: 27 Jan 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

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/

PwC | December 2019

4. MIC Permitted Projects

34

PwC | December 2019

MIC Permitted Projects (Meeting 20, 2019)

35

No. Name of Company Type of Investment Form of Investment

1Sun City Bago Industrial Land Development Ltd.

Construction and leasing service of factories and office buildings

Joint Venture

2 MCM Power Co., Ltd. (Permit) Generation of 40 MW electricity from gasengine, supply and sale of electricity on IPP(BOT) Basis

Joint Venture

Source: DICA

PwC | December 2019

5. Upcoming Events

36

PwC | December 2019

Upcoming Events (January 2020) List

Date Location Name of Event Sector Price Focus Points

13-17 Jan YangonMMIX & MMNOG Forum

IT andTechnology

TBC

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

29-30 Jan Yangon

International Conference on Economics and Finance Research (ICEFR)

Banking & Finance

TBC

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

37

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

https://www.go-myanmar.com/events-and-conferences

https://10times.com/myanmar

PwC | December 2019

Upcoming Events (February 2020) List


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




PwC | December 2019

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


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.”

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PwC | December 2019

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


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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© 2019 PricewaterhouseCoopers Myanmar Co Ltd. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Myanmar Co Ltd, which is part of the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

www.pwc.com/mm

PwC Myanmar Weekly Business Intelligence Publication

For further information please contact:

Mark RathbonePwC Capital Projects and Infrastructure Leader, Asia+65 6236 [email protected]

Jennifer TayPartnerCapital Projects & Infrastructure, PwC Singapore +65 8876 [email protected]

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