Myanmar

(Unlocking Financial Opportunities)

Country Profile

Official name: Republic ofthe Union of Myanmar

Capital: Nay Pyi Taw

Total land area: 676,578square kilometers

Population: 54,258,848(Country Meters 2016)

Life expectancy: 64.9 years(Country Meters 2016)

Literacy rate (15 years +):93.1% (UNESCO 2015)

Currency unit: kyat (MK)

Main exports: natural gas,minerals, beans, and pulses

Income level: lower middle-income (World Bank)

ADB member since:Reengaged in 2012 (after anabsence from directassistance to the countrysince 1998)

Key Sectors Contribution to GDP

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5

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30

35

40

Contribution in percentage to the GDP

Power Sector contributethe maximum share inthe GDP i.e. US $ 19,324million

Oil & Gas contribute US$ 16,992 million

Rest all sectors togethercontribute around US $16,858 million.

Source: www.adb.org/ www.reuters.com and DICA (Data as on 31st Jan., 2015)

Key Sectors for the year 2030

Source: The McKinsey Global Institute. The 2030 GDP is estimated to be US$220.6 billion by McKinsey

8

0.6

10.5 9.8

21.7

14.1

48.8

69.4

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30

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2010 2030

In Energy, projected GDPpercentage change from 2010 to2030 will be around 171%

In Hospitality, projected GDPpercentage change from 2010 to2030 will be around 2250%

In Infrastructure, projected GDPpercentage change from 2010 to2030 will be around 364%

In Manufacturing, projected GDPpercentage change from 2010 to2030 will be around 608%

Problems in Fragile-Conflicted Myanmar

FX Risk (Heavilydollarized economy)

Limited access tofinance, power

Lending limit of USD 15million to an economicgroup

Political instability,consideration

Lack of infrastructure,skilled labours

Weak Governmentinstitutions

War, conflict, extremepoverty

Improper legal &regulatory frameworks

Slow economic growth

Weak tax revenue

Corruption, internationalcrime, illicit financialflows

50 years of authoritarianmilitary rule

Agenda

Finance is necessary for SDGs, sustainableeconomic growth, infrastructure development,ensure energy and job-creation

Doing Business Indicators

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90DTF (% points)

2016 2017

Maximum change ishighlighted inStarting Business inMyanmar i.e. around10% due change inpolicies and providingincentives for newbusiness

Other indicatorseither remainedstable or shownimprovement w.r.t toprevious year 2017

Sources of Finance for Development

Tax Measures/ Cooperation

International FinanceFacility

Special Drawing Rights

International institutions

Foreign Direct Investments

Internal/ External Aid

Green Funds

Debt forgiveness

Local Governmentfunding

Private financing

Public PrivatePartnerships

Bond/ Debt Market

Innovative Financing

Private financing – A Key Solution

International finance institutions plays a critical role in building andleveraging trust in private financing, it can be done in followingways:

Ensuring MDB supports of private sector;

Catalyzing actions, investments;

Supporting commercially sustainable projects;

Reinforcing markets;

Promoting standards in project award, procurement,safeguards;

Promoting gender equality

Role of Government

Improve government institutions,

Improve, obey legal-regulatory environment,

Provide adequate infrastructure, services,

Create policy, political stability,

Improve tax system, public expenditure management,

Rebuild trust,

Increase domestic resources,

Unlock financing opportunities for public-private investments

Way forward (1/2)

Engage in areas that do not have the potential to intensify societal orpolitical divisions

Secure inclusive and participatory planning and implementation

Recognize that state-building endeavors should not focus solely on thestate work with MDBs to unlock and attract financing, investments andimprove public-private finances for SDGs

Guarantee, insure investments, financing by MIGA, protect investors

Improve education for eradication poverty, development-financing

Develop infrastructure, energy sectors

Support private finances to SDGs, reducing poverty

Implement national development policy plan reflected SDGs

provide efficient financial management

Way forward (2/2)

Mobilize domestic resources

Improve public-expenditure efficiency

Peace Building

Governance

Rural Development

Health

Trade & Private Sector Development

Risk Assessment

Thank you….