PwC MyanmarWeekly Business Intelligence

Issue 6116 June 2017

www.pwc.com/mm

PwC | June 2017

1. Weekly Key Financial & Business News

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PwC | June 2017

Weekly Key Financial & Business NewsHeadlines

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Taxi service firms compete hard for Yangon’s customers

Marga Landmark and Royal Sky leading contenders in upcoming Myanmar Property Awards

European businesses call for stronger collaboration and consultation between government and private sector

China’s $10 Billion Strategic Project at Kyaukpyu Sparks Local Ire

Dutch businesses keen for deals in Myanmar

PwC | June 2017

Weekly Key Financial & Business NewsHeadlines

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Groups Urge IFC to Drop Funding of Cement Factory

Foreign Investment in Agriculture Rests on Policy Support, Innovation, Says World’s Biggest Law Firm

Initial drilling for Pyi Thit well-1

Local Daewoo bus production for export

NLD adviser defends govt’s economic management

PwC | June 2017

NewspapersMyanmar Times

Marga Landmark and Royal Sky leading contenders in upcoming Myanmar Property Awards

Myanmar Property Awards – which is part of theregional Asia Property Awards – will be held forthe third time on June 30 in Yangon at theSedona Hotel.This year, 12 companies will attend the 2017Property Guru Myanmar Property Awards as thecompetition’s finalists. Among the year’s officialnominees include some of the country’s topdevelopers and a heritage property conservationbusiness.“This year, the Myanmar Property Awards hasabout 20 company competitions. Among them,the nominees have been chosen in the finalcompetition then the awarded companies aregoing to compete in Singapore for the AsiaProperty Award,” said Terry Blackburn, founderand managing director of the Asia PropertyAward and Property Report.The Marga Landmark and Royal Sky Company areboth the leaders, with five nominations each. TheShwe Taung Group CEO U Aung Zaw Naing isnamed “Real Estate Personality of the Year” and atotal of 18 competition awards and a specialaward will be presented at the forthcoming gala

dinner on June 30.The Marga Landmark, a joint-venture ofcompanies from Hong Kong, South Korea and theUK, is responsible for the mixed-use developmentcalled The Central in Yangon. It has beenbestowed with five nominations, including a nodin a new category for Best Universal DesignDevelopment.Equally blessed with five nominations is the RoyalSky Company Ltd, the developer of Dagon GolfCity, which is a residential project with a top-levelgolf course and luxury complex located nearYangon’s international airport.Another mixed-use developer is Asia MyanmarShining Star Investment Company, whichreceived four nominations including one fromKantharyar Centre in the Best ServicedApartment Development category.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/property-news/26347-marga-landmark-and-royal-sky-leading-contenders-in-upcoming-myanmar-property-awards.html

12 June 2017

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PwC | June 2017

NewspapersMyanmar Times

Taxi service firms compete hard for Yangon’s customers

An aspect of Yangon’s modernisation is the entryand emergence of domestic and internationaltransport operators, namely, Uber, Grab, OwayRide and Hello Cab, to compete in the taxi servicesector.Taxis are one of the commonly used modes oftransport in the region, alongside commutertrains and public buses. But taxi service in thecountry’s commercial capital centre is far fromprofessional.For one, most of the estimated 60,000 taxisplying the streets are operated by individualowners and taxi fees depend on the negotiationbetween the driver and the prospective passenger.The taxis do not use fare metres so prices arebasically haggled.This process oftentimes becomes tedious anddraining for passengers who just want to reachtheir destination as soon as possible. Thesituation becomes more unbearable in themonsoon season.Moreover, most drivers are not well-trained toprovide a professional service to passengers. Andwhat is worse is that there is no system to track a

taxi – via GPS – if problems arise.At night, taxi drivers will usually opt out toundertake long-distance destinations. Duringrush hours, drivers will also refuse passengers ifthere is traffic jam. However, if they do agree totake passengers during rush hours, they chargeexorbitant fares.But for passengers who are in a hurry, they haveendure all these inconveniences just to get to theirdestinations.Since last year, the taxi service in Yangon hasimproved with the emergence of two localcompanies: Hello Cab and Oway Ride.Passengers can hire these taxis through theirmobile phones, Facebook accounts, or throughthe companies’ websites and call centres.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/26348-taxi-service-firms-compete-hard-for-yangon-s-customers.html

12 June 2017

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PwC | June 2017

NewspapersMyanmar Times

European businesses call for stronger collaboration and consultation between government and private sector

“The key message is political support’ – thesewords from the vice president [Myint Swe] at theopening speech were perceived as a strong andwelcoming message to European investors inMyanmar and European companies looking atMyanmar as a possible new investmentdestination in ASEAN,” said Filip Lauwerysen,executive director of the European Chamber ofCommerce in Myanmar (EuroCham) during theMyanmar-EU Economic Forum held in Nay PyiTaw on June 8.More than 300 hundred top-level governmentrepresentatives and leaders of Europeanindustries took part in EuroCham’s firstMyanmar-EU Economic Forum. Among theattendees, roughly 100 were European investors.“Last but not least, Eurochambres is present withtheir CEO, Mr Abruzzini [Arnaldo Abruzzini],representing 20 million companies in Europe.“The basis of the discussion was EuroCham’s‘White book’, which is a bundle of position papersof European industry groups working underEuroCham with very detailed recommendationsfor the Union’s government,” Mr Lauwerysen

explained.The “White Book” is an annual publication byEuroCham identifying the year’s focal business,trade and investment issues affecting Europeanenterprises.According to information from the EuropeanOmbudsman, the Association of EuropeanChambers of Commerce and Industry(Eurochambres) represents the businesscommunity at EU level. It was established in 1958as a direct response to the creation of theEuropean Economic Community. Of theestimated 20 million member enterprises inEurope that Eurochambres represents, more than93 percent are small and medium-sizedenterprises (SMEs).

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/26361-european-businesses-call-for-stronger-collaboration-and-consultation-between-government-and-private-sector.html

13 June 2017

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PwC | June 2017

NewspapersMyanmar Business Today China’s $10 Billion Strategic Project at Kyaukpyu

Sparks Local Ire

In April, Myanmar's President Htin Kyaw signedtwo agreements on the pipeline and the Kyaukpyuport with his Chinese counterpart Xi Jinping, asBeijing pushed to revive a project that had stalledsince its inception in 2009.The agreements call for environmental and socialassessments to be carried out as soon as possible.While the studies are expected to take up to 15months and have not yet started, CITIC has askedMyanmar to finalise contract terms by the end ofthis year so that the construction can start in2018, said Soe Win, who leads the Myanmar man-agement committee of the zone.Such a schedule has alarmed experts who fear theproject is being rushed."The environmental and social preparations for aproject of these dimensions take years to com-plete and not months," said Vicky Bowman, headof the Myanmar Centre for Responsible Businessand a former British ambassador to the country.CITIC said in an email to Reuters it would engage"a world-renowned consulting firm" to carry outassessments.Although large-scale land demarcation for the

project has not yet started, 26 families have beendisplaced from farmland due to acquisitions thattook place in 2014 for the construction of twodams, according to land documents and the landowners.Experts say this violates Myanmar's environmen-tal laws."Carrying out land acquisition before completingenvironmental impact assessments andresettlement plans is incompatible with nationallaw," said Sean Bain, Myanmar-based legal con-sultant for human rights watchdog InternationalCommission of Jurists.

Source : Myanmar Business Todayhttp://www.mmbiztoday.com/articles/china-s-10-billion-strategic-project-kyaukpyu-sparks-local-ire

13 June 2017

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PwC | June 2017

NewspapersEleven Myanmar

Dutch businesses keen for deals in Myanmar

A DOZEN Dutch companies took part in theNetherlands’ first trade mission to Myanmar lastweek, reflecting keen interest to expand businessties.Dutch ambassador Wouter Jurgens said themission, from June 7-9, was part of efforts tobuild on these relations.Jurgens said the Dutch companies discussedopportunities with Myanmar business people in arange of sectors including agriculture, integratedwater management, banking, engineering, portdevelopment, furniture, medical care and securityprinting.“We are very happy that a lot |of Myanmarcompanies signed up for the business-matchingevent, even more than what we could handle,” hesaid in an interview. “Many Dutch companiescame here to look for partners. First, we need tobuild contact and then proceed to the contract.“There are many different opportunities inMyanmar, and many different Dutch companiesare responding to them. They are eager to comeexactly at the right moment. It is a really goodopportunity for Dutch companies to link up with

Myanmar businesses. Hopefully the contracts willfollow soon.”The ambassador hailed the trade mission as a newchapter in bilateral relations, which started asearly as 1947. The Netherlands is the ninth largestforeign investor in Myanmar, with 18 enterprisesapproved by Myanmar Investment Commissionthat have brought in US$1.4 billion in initialcapital.Bilateral trade reached US$140 million in fiscal2016-17, to March 31, official statistics show.Jurgens believes this figure will at least double by2020.He said more than 200 Dutch businesses hadshown their interest in exploring the Aseanmarket, particularly Myanmar, at a recent Aseanbusiness event in The Hague. He said some ofDutch big names - including Shell, Unilever,Heineken and Philips - have been doing businessin Myanmar since its period of isolation.

Source : Eleven Myanmarhttp://www.elevenmyanmar.com/business/10015

13 June 2017

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PwC | June 2017

NewspapersMyanmar Business Today Foreign Investment in Agriculture Rests on Policy

Support, Innovation, Says World’s Biggest Law Firm

Myanmar's agricultural sector is 'very close' toseeing an uptick in foreign investment but only ifthe government continues providing policy sup-port and if investors are willing to 'innovate', ac-cording to the Myanmar resident partner of theworld's largest law firm.After decades of neglect, Myanmar's largestindustry lags well behind that of regionalneighbours Thailand and Vietnam in terms ofoutput but it's the lack of transport infrastructurewhich has the greatest impact on the sector, saidMark Livingston, Resident Partner of DentonsMyanmar.“The biggest issue with agriculture in Myanmar atthe moment is not agriculture, it's transport."[Myanmar] doesn't have good rail, good roads, alot of storage facilities and ports are still underdevelopment so actually the key enabler for reallyopening up the agriculture sector will be thetransport sector,” he told Myanmar BusinessToday.“...It doesn't really matter if you produce greatervolumes of higher quality crops if you can't movethem to market quickly.”

While it could be a decades long wait while thenation's ageing transport infrastructure is upgrad-ed, there are opportunities for innovative smallerbusinesses to fill in the gaps, he said.“Smaller businessescould alleviate that problemby bringing small scale processing closer to thefarmer and also some more modern techniques interms of storage capacity and transport thatdoesn't rely as much on traditional road andwarehouse networks.”Agriculture accounts for 37.8 percent of My-anmar's gross domestic product (GDP), 25 to 30percent of total export earnings and employs 70percent of the labour force, according the sta-tistics of United Nation's Food and AgricultureOrganization.

Source : Myanmar Business Todayhttp://www.mmbiztoday.com/articles/foreign-investment-agriculture-rests-policy-support-innovation-says-world-s-biggest-law

13 June 2017

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PwC | June 2017

NewspapersMyanmar Business Today Groups Urge IFC to Drop Funding of Cement Factory

The International Finance Corporate (IFC), theprivate lending arm of the World Bank, has beenurged by 174 Myanmar civil society organisationsto drop its plans to fund the upgrade of a cementfactory and coal mine owned by a businessmanwith links to the former military regime.The open letter signed by the CSOs calls on theIFC to drop $35 million worth of funding slatedfor the Shwe Taung Cement factory whichincludes the expansion of a nearby coal-minebecause of the project's potentially “devastatingenvironmental, health and climate impacts.”“The Shwe Taung Cement Factory will require theextraction of 150,000 tons of poor-quality sub-bituminous coal per year,” reads the letter.“As the World Bank has pledged not to financecoal power plants in Myanmar due to their dev-astating environmental, health and climate im-pacts, it is not clear why the IFC is consideringfunding this project.“The IFC would be better off investing $35 millionin loans and equity in a more sustainable sectorthan the cement industry, which is responsible for5 percent of the world’s carbon emissions.”

The expansion project would see Shwe TaungCement (STC), part of conglomerate Shwe TaungGroup, upgrade its current facility which has aclinker manufacturing capacity of 1500 tonnes perday and cement grinding capacity of 2800 tonnesper day to 5,500 and 7,200 tonnes per dayrespectively.Of the IFC funding, $15 million would go towardsexpanding the factory and $20 million would gotowards part-funding the $100 million expansionof a plot of company brownfield nearby.Although an IFC board decision on the projectwas anticipated for June 8, it had been pushedback pending further negotiations, reportedweekly Frontier Myanmar.The upgraded cement factory would consumemore coal and would require the expansion of a3,378 acre coal mine spanning 15 kilometers inKalewa, Sagaing Division, for power, reads thestatement.

Source : Myanmar Business Todayhttp://www.mmbiztoday.com/articles/groups-urge-ifc-drop-funding-cement-factory

13 June 2017

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PwC | June 2017

NewspapersMyanmar Times

Initial drilling for Pyi Thit well-1

The company has been drilling in Pyi Thit’sexploratory wells since March 2012 and a gasdiscovery was declared after drilling Pyi Thit-1.Pyi Thit-1’s appraisal well is going to be spuddedduring the second week of June, MPRL E&Pannounced.Similarly, a senior official from the Ministry ofElectricity and Energy (MOEE) told TheMyanmar Times two weeks ago that discoveries inA6 and AD-7 blocks are going to be appraised forcommerciality.“Commerciality depends on oil and gas reserves,[and] investment amounts … it can›t be finishedwithin three or five years because some aredifficult,” he said.Prospects are found in some blocks but theyhaven›t been drilled yet. It can be approved onlyafter drilling and thus it can›t be finished withinone year. In reviewing commerciality, it has to bedone after comparing production volumes andinvestment amounts based on recoverablereserves of oil and gas, a senior official said.Block A-6 is situated in the Rakhine offshore areawhich is 9830 square-kilometres wide. Water

depth ranges from 50 to 2500 metres. Waterdepth in Pyi Thit-1’s appraisal well location is6578 feet (2005 metres) and the total verticaldepth needed to be drilled is 15420 feet (4700metres).The transoceanic drill ship «Dhirubhai DeepwaterKG2” will be used to appraise gas reserves andprospects in 5-million-year-old Pliocenesandstone layers.Australia-based Woodside and France-basedTotal companies made investments in A-6 tocooperate with the MPRL E&P in 2013 and 2015respectively in order to expand deepwaterexploratory activities after finding good results inPyi Thar-1. Currently, the MPRL E&P is the PSCoperator of Block A-6.Drilling started in the evening of June 8 evening

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/26379-initial-drilling-for-pyi-thit-well-1.html

14 June 2017

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PwC | June 2017

NewspapersMyanmar Times

Local Daewoo bus production for export

Myanmar Trade Center Co will roll out locallymanufactured Daewoo minibuses from its HtaukKyant factory in Yangon by the end of this year,said the firm’s executive director U Kyaw KyawAung, in a bid to help improve transportefficiency and ease congestion.U Kyaw Kyaw Aung added by 2018 the companywill be producing city buses, which are aimed notonly for the local market but also for exportpurposes.The city buses and the minibuses will be poweredby compressed natural gas (CNG) and dieselengines, he said, adding that the company hasalready signed an agreement with the Ministry ofIndustry on May 30.“We signed a partnership agreement for thisfactory with Ministry of Industry. We make theinvestment for production of the buses while theministry will help us in marketing.“Daewoo is also our partner, and will provide themachinery, technical assistance andmanagement,” said U Kyaw Kyaw Aung.“We have started constructing and preparing thefactory. We intended to produce two models but

we will produce the minibuses first.“We can start production of the city buses in mid-2018,” he added.Myanmar Trade Center will build the 35 servicecentres for Daewoo buses, U Kyaw Kyaw Aungsaid.“We can extend production depending on themarket demand. For example, a minibus can beused as a school bus, ferry or shuttle bus.“For city buses, they can be used for intercity orinner-city transport as well as for highway expressroutes. So we will produce the vehicles dependingon market demand,” he explained.The Daewoo buses produced in-factory would alsobe sold to other countries. Thus, it would makethe country a vehicle exporter.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/26418-local-daewoo-bus-production-for-export.html

16 June 2017

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NewspapersMyanmar Times

NLD adviser defends govt’s economic management

Sean Turnell, an economic adviser to the NLD-ledgovernment, said that the administration spentthe first year stabilising the economy and that theeconomy would take off soon.He also defended the government’s managementof the economy, which saw a drop in foreigndirect investment, during the Myanmar-EUEconomic Forum organised in Nay Pyi Taw lastweek.“Myanmar is like a plane running on the runwayin 2016, but it is ready to take off in 2017,” UnionMinister U Kyaw Win of the Ministry of Planningand Finance told local and foreign businesses whoattended the Myanmar Investment Forum lastweek.The new government – which took over in the late2015 – has finished the transitional phase and hasalready set up measures to address the budgetdeficit, trade deficit and inflation, he added.The NLD adviser agreed with the runwaymetaphor.“It is actually quite a good metaphor. It’s a prettysimple one but a good one.“The first year was really spent in stabilisation.

We knew that when the new government came in,the budget was completely blown out.“The new government had a really bad budgetdeficit. The current account deficit or trade deficitis blown out as well. Inflation is at the rate of 16percent and, on top of that, some bad loans areadded during very last days of the [previous]government.“In some way, the economy was overheating. Andit was a difficult legacy to inherit,” he explained.The adviser was keen to highlight thatstabilisation, not growth, should be the newadministration’s priority.“When you have the new government, the firstthing have to do is to stabilise things.

Source : Myanmar Timeshttp://www.mmtimes.com/index.php/business/26419-nld-adviser-defends-govt-s-economic-management.html

16 June 2017

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2. Weekly Investment News

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Weekly Key Investment NewsHeadlines

Investment Forum Seeks to Attract Foreign Interest

Singapore bus manufacturer SC Auto to set-up S$30 million facility in Yangon

TTCL Plans Two Power Plants in Myanmar Worth $6 Bn

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Myanmar-China trade reaches $10 billion every year

150 foreign companies expected to invest $1.7bn in Thilawa SEZ

PwC | June 2017

NewspapersThe Irrawaddy

Investment Forum Seeks to Attract Foreign Interest

Burma made a bid to boost foreign investmentinterest in the country at a two-day conference inNaypyidaw this week.The forum hosted by the Myanmar InvestorsDevelopment Association (MIDA) was attendedby more than 100 economic organizations, 90foreign enterprises and almost 200 Burmesebusiness people.Vice President U Myint Swe, Planning andFinance Minister U Kyaw Win and ViceCommerce minister U Aung Htoo outlinedBurma’s economic and trade policy and theimportance of foreign investment to drive growthin the country.U Kyaw Win predicted that Burma’s economy was“ready for take-off” while some business personsexpressed more caution, the Irrawaddy reported.U Aung Naing Oo, Director General of theDirectorate of Investment and CompanyAdministration gave an update on the investmentenvironment following the implementation of thenew Myanmar Investment Law and Rules anddiscussed the changing nature of Burma’seconomy.

Chinese, Thai and Indian potential investors werestrongly represented at the event, the Irrawaddysaid in another report.The World Bank expected economic growth inBurma to decrease from 7.3 percent in 2015-16 to6.5 percent in 2016-17. It projects medium-termgrowth to average at 7.1 percent per year.

Source : The Irrawaddyhttps://www.irrawaddy.com/business/the-irrawaddy-business-roundup-june-10.html

10 June 2017

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NewspapersMizzima News

Singapore bus manufacturer SC Auto to set-up S$30 million facility in Yangon

Singaporean bus manufacturer SC Auto is settingup a S$30 million facility in Yangon, Myanmar, inits first overseas venture after operating inSingapore for more than 20 years, todayonlinereported on 12 June.The 16,000 square metre facility, which alsomakes SC Auto the first foreign bus manufacturerin Myanmar, is scheduled to begin production inthe fourth quarter of next year, the company said.For its Myanmar operations, SC Auto aims toproduce over 100 buses in its first year anddouble its revenue. With the added internationaloperations, staff hires will increase to 600. SCAuto also plans to invest in robotic welding for thefacility, yielding greater efficiency in theproduction process, according to a statement.

Source : Mizzima Newshttp://www.mizzima.com/business-domestic/singaporean-bus-manufacturer-sc-auto-set-s30-million-facility-yangon

13 June 2017

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NewspapersConsult Myanmar

TTCL Plans Two Power Plants in Myanmar Worth $6 Bn

TTCL, an integrated engineering procurementand construction firm listed on the StockExchange of Thailand, plans to invest more thanUS$6 billion (Bt204 billion) between the secondhalf of this year and 2020 to establish two coal-fired power plants in Myanmar, chief financialofficer Gobchai Tanasugarn said.TTCL is a joint venture between Italian-ThaiDevelopment, which holds a 51-per-cent stake,and Japanese company Toyo EngineeringCorporation, which holds 49 per cent.Gobchai said the first project would be a coal-fired plant in Mon state with production capacityof 1,280 megawatts.This $3-billion project will get under way thisyear.As for the second project, a coal-fired plant inKayin state, it is still under study, and it will takeabout 30 months before TTCL is ready to proposeit to the Myanmar government. If it goes ahead,the project will also have production capacity ofabout 1,280MW and will be developed under aninvestment budget of $3 billion, he said.TTCL subsidiary Toyo Thai Power Myanmar Co

already operates a natural-gas-fuelled combined-cycle power plant in Yangon with total capacity of121MW.The company plans to spend an average of $1.25million per megawatt to nearly double the plant’scapacity to 200MW in the project’s second phase,to be proposed to the government as soon aspossible, Gobchai said.Listing plannedTo raise funds for this high investment budget,the company plans to apply for listing itssubsidiary Toyo Thai Power Holding Co on eitherthe SET or the Singapore Exchange, he said.TTCL holds a 70-per-cent stake in Toyo ThaiPower Holding Pte Ltd, which is registered inSingapore, while 18 per cent is held by itsmanagement and staff as the rest by otherpartners.

Source : Consult Myanmarhttps://consult-myanmar.com/2017/06/14/ttcl-plans-two-power-plants-in-myanmar-worth-6-bn/

14 June 2017

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PwC | June 2017

NewspapersEleven Myanmar

Myanmar-China trade reaches $10 billion every year

The trade volume between Myanmar and Chinausually reaches about US$10 billion every year,accounting for 30 per cent of Myanmar’s foreigntrade, said Ministry of Commerce permanentsecretary Toe Aung Myint.In the export sector, marine trade reached morethan $1.3 billion. Border trade reached $638million. The total export volume reached morethan $1.9 billion up to June 2 for the 2017-2016fiscal year. In the import sector, marine tradereached $2.6 billion. Border trade reached $467million. The total import volume reached morethan $3.1 billion.The trade volume has so far reached $5 billionthis year – up $730 million from the same periodlast year, according to official data from theMinistry of Commerce. Deputy commerceminister Aung Htoo said: “Myanmar’s exportvolume is expected to triple under the newgovernment. Illegal trade at the border must bechanged into official trade. Value-addedagricultural products must be manufactured.Gems must be changed from raw to finishedproducts.”

Myanmar exports agricultural produces, marineproducts, minerals, forest products, industrialproducts, animal products and other items, andthe country imports investment materials, rawmaterials for industrial purposes and personalgoods. Although Myanmar possesses naturalresources to export, it is not a competitiveexporter of natural gas. Low rates can hurtMyanmar’s economy, said Commerce minister DrThan Myint.“Revenue is a main issue for the country. Fallingoil prices harm exports. Timber production fromthe forest is now being reduced. Reforestation willhave to be carried out during the reduction oftimber production. It can somewhat hurt thecountry’s economy,” Minister Dr Than Myint said.

Source : Eleven Myanmarhttp://www.elevenmyanmar.com/business/10025

14 June 2017

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NewspapersEleven Myanmar

150 foreign companies expected to invest $1.7bn in Thilawa SEZ

The Ministry of Commerce expects about 150foreign companies to invest US$1.7 billion in theThilawa Special Economic Zone, located insouthern Yangon Region, when it is completed.Deputy Minister Aung Htoo predicted the exportvolume from Zone A of the Thilawa SEZ to reach$600 million, which would account for 5 per centof Myanmar’s total export volume.There are already 82 companies from 17 countrieswith investments in the SEZ. Some of thesecompanies, particularly those in the garment,shoes, toys, spare car parts and electronicsindustries, have begun operations.Most of the factories are import-substitutemanufacturing ones and produce constructionmaterials, foodstuffs, aluminum, fuel, farmmachinery and implements, pharmaceuticals andfertilizers.Japanese companies have invested $468 millionin the Thilawa SEZ, accounting for 43.54 percentof the foreign investment volume as of the end ofMay 2017, followed by Thailand with $134million.There are 2,400 hectares in the whole

implementation area of the Thilawa SEZ, andZone A has 400 hectares. The construction ofZone A is 96 per cent complete. The constructionof Zone B is set to begin soon. The first-phasedevelopment of 101 hectares in Zone B is expectedto be completed in the middle of 2018.Companies wishing to invest in the SEZ will beable to rent plots of land at the end of 2017. Aforeign investment volume of $122 million flowedinto the Thilawa SEZ during the first two monthsof the 2017-2018 fiscal year, according toDirectorate of Investment and CompanyAdministration.

Source : Eleven Myanmarhttp://www.elevenmyanmar.com/business/10026

14 June 2017

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3. Weekly New Tenders

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Tenders (Myanmar Government)List

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

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Request for Quotation for market entry studies for specialty agro-food for Cambodia, Laos & Myanmar; Closing Date: 30 June 2017

PwC | June 2017

Tenders (Multilateral organizations)List

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

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Re-advertisement of LRPS-9131408: LTA for Micro Assessment & Audit; Closing date: 26 June 2017

Consultancy Services for the Curriculum Development for the Public Finance Management Academy; Closing Date: 30 June 2017

PwC | June 2017

4. MIC Permitted Projects

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MIC Permitted Projects (Meeting 8, 2017)

No. Name of Company Type of Investment Form of Investment

1 GAC Myanmar LimitedProduction and Marketing of Coffee Bean (Arabica) and Vegetable Seeds

Joint Venture Investment

2 Myanmar VB Company LimitedManufacturing and distribution of instant cereal mix, instant coffee mix, instant tea mix, cereal bars and cereal flakes

Joint Venture Investment

3 Golden Cashew Company Limited Colour- sorting and grading cashew kernel Myanmar Citizenship Investment

4 Asia Hline Kyaw Family Company LimitedAll Kings Beals, Clearing machine and Dal machine

Myanmar Citizenship Investment

5 Mizi Bags Company Limited (Brunei Darussalam)Manufacturing of Various Kinds of Bags on CMP Basis

Wholly Foreign Owned

6 Soleil Ribbon Limited (Hong Kong)Manufacturing of Ribbons, Bows & Rosettes, Pouches, Cord with Barb and Elastic Cord Loops on CMP basis

Wholly Foreign Owned

7 Newtop Lotus Company Limited (China) Manufacturing of Garments on CMP Basis Joint Venture

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PwC | June 2017

MIC Permitted Projects (Meeting 8, 2017)

No. Name of Company Type of Investment Form of Investment

8Seduno Myanmar Knitted Company Limited (Hong Kong)

Manufacturing of Garments on CMP basis Wholly Foreign Owned

9Myanmar Deco- TBSP Special Products Company Limited

Manufacturing and Marketing of Various Printed Documents such as passbook (Saving book) and Cheque book

Joint Venture

10CP Motor Myanmar Company Limited (British Virgin Islands)

Manufacturing and Sales of Motorcycle Wholly Foreign Owned

11 Kamax Group Myanmar Company Limited (China) Manufacturing and Sales of Motorcycle Joint Venture

12 Polysack Kyaukse Company Limited (Thai)Manufacturing and Marketing of Woven Plastic Bags

Joint Venture

13Maijiang International Building Material Company Limited

Manufacturing and Marketing of Electric WireMyanmar CitizensInvestment

14 Myint Myat Kyaww Industry Company LimitedManufacturing and Marketing of Construction Materials Used by Steel & H-Beam

Myanmar Citizens Investments

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PwC | June 2017

MIC Permitted Projects (Meeting 8, 2017)

No. Name of Company Type of Investment Form of Investment

15 Red Roof Investment Development Company LimitedConstruction, Operation and Leasing of Residence

Foreign Investment

16 Space World Teleinfra Myanmar Company LimitedTelecom and Power Installation and maintenance services

Foreign Investment

17 Sagaing Tainhong Company LimitedManufacturing, Sales and Decoration of PVC Plastic Coated Roofing Tiles and Various Steel Products

Wholly Foreign Owned

18 DHL Supply Chain Myanmar LimitedSupply Chain Management, Logistics and Warehousing Services

Wholly Foreign Owned

19 SIM Company LimitedDevelop, Construct and Operate Offshore Supply Base for Oil & Gas related services

Myanmar Citizen Owned

20 Myint & Associates Offshore Supply Base Limited Offshore Supply Base Myanmar Citizen Owned

21 Y Complex Company LimitedConstruction and leasing Hotel, Office and Shopping Complex

Foreign Investment

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5. Upcoming Events

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Upcoming Events (July 2017 to August 2017) List

Date Location Name of Event Sector Price Focus Points

6-7 July 2017 YangonASEAN Ports & Shipping

Ports & Shipping

1,268

Programme will feature 30 world-class conference speakers addressing regional issues and challenges on global transportation and logistics.

24-25 July 2017 YangonMyanmar Banking & Finance Conference

Banking TBC

Cover about the real challenges retail banks face today, across markets and forecast on what does Digital 2025 look like in Myanmar.

03-05 Aug 2017 YangonRenewable Energy Expo Myanmar

Power TBC

Renewable Energy technology and equipment event that brings together an international congregation of Government and private renewable energy companies, suppliers and also its supporting industries gathered in Yangon, Myanmar to showcase the latest developments in the renewable energy industry in Myanmar.

16-17 Aug 2017 YangonGlobal Water Conference

Utilities TBC

This conference is designed to facilitate the implementation of the water management policies and encouraging collaboration between those working on water resources manage and water technologies, public health, economic growth and other issue.

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Upcoming Events (September 2017 to October 2017) List

Date Location Name of Event Sector Price Focus Points

27-29 Sep 2017 Yangon Agri Myanmar Agriculture TBC

This event showcases product from Agriculture & Forestry industry. Agri Myanmar 2017, in the chain of International Agri Expo, is the leading agriculture event in Myanmar promises great chances for business cooperation, networking, potential market entry, as well as for exchanging useful information and innovative ideas.

12-14 Oct 2017 YangonBuilding & Construction Myanmar

Construction TBC

The event showcases product from Building and Construction industry as well as to help the professionals to discuss about the new opportunities and trends associated with the industry.

18-19 Oct 2017 Yangon Oil & Gas Myanmar Oil & Gas Free

Opportunities and difficulties facing in Myanmar Oil & Gas Industry as it embarks on its exciting new phase of growth.

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

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

part of the network of member firms of PricewaterhouseCoopers International

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

www.pwc.com/mm

PwC Myanmar Business Intelligence Publication

For further information please contact:

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

Brandon LyeDirectorbrandon.lye@sg.pwc.com

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