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PwC MyanmarWeekly Business Intelligence

Issue 8210 November 2017

www.pwc.com/mm

PwC | November 2017

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PwC | November 2017

1. Weekly Key Financial & Business News

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PwC | November 2017

Weekly Key Financial & Business NewsHeadlines

YCDC Election To Be Held In March 2018

DCA deploys budget, invites tenders to jazz up airports, aviation

Transparency report doubles its scope

Myanmar Targets 1 Million Low Cost Apartments

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Foreign Companies Eye to Invest in Myanmar’s Farming

PwC | November 2017

Weekly Key Financial & Business NewsHeadlines

Logistics conference to spotlight e-commerce and Belt and Road

Steelmakers among the latest Japanese investors

China says will keep talking to Myanmar over stalled dam scheme

ANA joint venture falls through due to poor communications

5

Higher fuel import taxes to be tabled

PwC | November 2017 6

DCA deploys budget, invites tenders to jazz up airports, aviation

High costs and a lack of travelers passing throughsome of Myanmar’s airports has resulted in atleast four of the country’s ten airlines bypassingthose locations altogether. Consequently, as manyas eight airports have ceased operations in recentyears, accounting for a quarter of Myanmar’s 32domestic airports.Five out of the eight shuttered airports, whichinclude Pathein airport in Irrawaddy, Hpa-anairport in Kayin, Magwe airport, Coco Islandairport in Yangon and Aneesakan airport inMandalay, have since been converted to militarybases. Meanwhile, Kyauk Htu airport, which isalso in Magwe, will soon be transferred over tothe Ministry of Defense, leaving Pakokku airportand Chanmya Tharsi airports in Mandalay vacantand unused.“Domestic airlines have stopped flying to thesedestinations because it is not cost-effective,” U YeHtut Aung, Deputy Director General of theDepartment of Civil Aviation (DCA) told TheMyanmar Times.Meanwhile, only two of the ten domestic airlines,Myanmar National Airlines (MNA) and Air

Kanbawza, operate on the majority of thedomestic routes, according to the DCA.“Air KBZ operates eight ATR-72 aircrafts to 14domestic destinations and Chiang Mai, which is inThailand. But recently, we stopped flying toDawei, Kawthaung, Myeik and Loikaw due to lowdemand, which made the routes less costeffective,” said Daw Aye Mra Tha, generalmanager of Air KBZ.Aviation budgetBut plans have been set in motion to boosttourism and revive the number of travelers at thenation’s airports. By deploying a budget totaling$103 million, the DCA wants to build new airportsin promising locations across the country. It willalso channel money towards upgrading many ofthe existing airports.

Source: Myanmar Timeshttps://www.mmtimes.com/news/dca-deploys-budget-invites-tenders-jazz-airports-aviation.html

NewspapersMyanmar Times

03 Nov 2017


YCDC Election To Be Held In March 2018

New laws regulating the Yangon CityDevelopment Committee (YCDC) is underway andscheduled to be finished and enacted byDecember 2017. With an election for members ofthe YCDC to be held shortly after in March 2018,U Phyo Min Thein, Chief Minister of the YangonRegional government, said.U Phyo Min Thien said, “There are issues that de-ter us from implemented YCDC’s projects quicklybecause of the weakness of current YCDC laws.With a mandate from the Regional Governmentand with their cooperation, we will change theentire system.” The amended YCDC law,according to U Phyo Min Thein, will overhaulYCDC’s procedures. They have also beenpreparing for the election by holding a series ofpre-election meetings.‘‘We are preparing to hold new YCDC electionwhich will meet democratic standards. Combinedwith the new laws, the construction process forthe Yangon area will become more efficient ,’’U Phyo Min Thein said at a meeting with businessleaders.The tenure of Members of YCDC is same as of the

government, five years, but it has not held andelection since the new government had come intooffice in 2015.The 23 task forces that were formed under thecurrent YCDC laws back in 1992, will becontinued under the new YCDC law.The process of amending YCDC law started inDecember 2016 and comes to fruition by the endof the year.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/ycdc-election-be-held-march-2018

NewspapersMyanmar Business Today

07 Nov 2017


Transparency report doubles its scope

THE fourth annual transparency study conductedby Yangon-based Myanmar Centre forResponsible Business (MCRB) will widen itsscope to cover as many as 200 company websites.It will also examine the performance of Myanmarcompanies in the ASEAN framework.Last week, the MCRB - an initiative funded by theUK, Denmark, Norway, Switzerland, theNetherlands and Ireland - has started theresearch phase of the 2018 report onTransparency in Myanmar Enterprises (TiME) ina new partnership with Myanmar-based businessconsultancy Yever.The 2018 report will involve five dimensions:corporate culture, corporate governance,sustainability management, communication andreporting. These criteria are aligned withinternational and regional corporate governancesuch as the ASEAN Corporate GovernanceScorecard, which is used in Malaysia, Thailand,the Philippines, Indonesia and Singapore.The number of company websites assessed willalso be doubled to 200, to cover companies listedat Yangon Stock Exchange (YSX), domestic

“public companies”, other influential companies -including large taxpayers - and medium/large-sized companies which have volunteered to bebenchmarked.Speaking at the launch of the research phase onOctober 31, Vicky Bowman, MCRB director, saidthat after three reports which have used the same35 criteria for examining websites forinformation, the centre has decided to refresh thePwint Thit Sa methodology.“We are therefore widening the range of corporateinformation which we are seeking, and aligningthis more closely with the ASEAN CorporateGovernance Scorecard. We are also widening thescope to include major ‘public companies’ forwhom corporate governance should be a toppriority. We’re delighted to be partnering withYever to make this the most comprehensivereport yet of the transparency of up to 200Myanmar companies,” she said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/transparency-report-doubles-its-scope.html


07 Nov 2017


Myanmar Targets 1 Million Low Cost Apartments

As the country has so many homeless peopleacross the nation, the NLD-led government’shousing plans on 1 million low cost and affordableapartments will be constructed over a 15-yearperiod, from 2015-2016 to 2030-2031 fiscal yearsunder the cooperation of public and privatepartnerships, according to Department of Urbanand Housing Development (DUHD).According to nationwide census result, approxi-mately 8 million people are living in Yangon, andnearly 2 million of the population need homes.“Yangon and Mandalay are the most populouscities in the country, the cost housing project is inpriority to handle. We will extend these projectsto other towns if housing demand and populationhave raised,” Daw Mi Mi Tin, Director of Depart-ment of Human Settlement and Housing Devel-opment under Ministry of Construction.According to low cost and housing project plans ofMinistry of Construction, 180,000 apartmentsbetween 2016-2017 and 2020-2021 fiscal year,300,000 apartments between 2021-2022 to2025-2026, 420,000 apartments between 2026-2027 to 2030-2031, nearly a total of 1 million

apartments across the nation will be constructed.Construction and Housing Development Bank(CHDB) received loan business license in July2013, from the Central Bank of Myanmar, andcurrently the bank has launched 10 branchesacross the nation.Announced in early July, the Myanmar In-vestment Commission listed low cost and afford-able housing in their top 10 sectors that has beenprioritized for development.This is a significant part of the NLD’s effort to ad-dress the massive demand for low cost and afford-able housing in Yangon and begin to improve thecity’s widespread homelessness.Due to the insufficient budget amount from thegovernment for the projects, the DUHD will haveto plan on working closely with other privateconstruction firms. At present, the department isin the process of land clearing and has allocatedcompensation to landlords.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/myanmar-targets-1-million-low-cost-apartments


08 Nov 2017


Foreign Companies Eye to Invest in Myanmar’s Farming

Foreign companies have been eying Myanmar’sagriculture sector for investment, as they seemany opportunities to improve farming,according to the Myanmar Rice Federation(MRF).‘‘Countries such as Japan, China, Taiwan, Sin-gapore and Brunei have been showing interest injoint ventures to invest within the rice productionsector,’’ U Aung Than Oo, Secretary of MyanmarRice Federation, said.It is important for the struggling rice sector toaccess foreign markets for export, which will helpfarmers to generate more income. Myanmar hasentered to the list of global major rice exporters,and now has access to 53 countries includingEuropean and African countries.Myanmar’s rice production is facing challengeswith things like low production yields, low qualityyields, high production cost, and high cost ofstorage and distribution, much of which is the re-sult of a lack of infrastructure and technology, ac-cording to MRF.Investors are interested in providing things likeproductive seeds, fertilizers, crop safeguards,

farming equipment, and related technologies tofarmers. Joint venture companies are also work-ing with the farmers to buy rice with fixed prices.MRF has urged the government to adopt clearrules and regulations in order to make foreign in-vestment easier for joint ventures with local farm-ers including legal protections for foreign inves-tors.Foreign investment in the agriculture sectoris relatively low when compared to other sectorssuch as garment sector. There was approximately$130 million foreign direct investment (FDI) inthe agriculture sector from April to September2017, according to the data from Myanmar In-vestment Commission (MIC).There was $138 million FDI in the agriculture sec-tor in the 2010-2011 fiscal year, which ended inApril 2011. The 2012 fiscal year had noinvestments, the 2013 fiscal year had $9.69million, the 2014 fiscal year had $20.26 million,the 2015 fiscal year had $39.66 million, and the2016 fiscal year had $7.18 million.Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/foreign-companies-eye-invest-myanmar-s-farming


08 Nov 2017


Steelmakers among the latest Japanese investors

Japanese investor interest in Myanmar is likely toremain robust as the Bank of Japan continues tohold short-term interest rates at minus 0.1percent.With cash deposits generating negative returns athome, Japanese companies are likely to continueinvesting funds elsewhere, including in Myanmar.Among the latest investors in the country are JFESteel Corporation, Meranti Steel, JFE Shoji TradeCorporation, Marubeni-Itochu Steel Inc andHanwa Co,which will form a joint venture toproduce and sell hot-dip galvanised and colouredflat steel products for the building andconstruction sector in Myanmar.The five companies will establish a manufacturingand sales company, JFE Meranti Myanmar Co, inMyanmar through a Singapore-based holdingcompany. Once approved, the JV will begin theconstruction of a $85 million plant at the ThilawaSpecial Economic Zone (SEZ).When complete and operational in 2020, theplant will be the first project focused onmanufacturing high-grade galvanised flat steelproducts in the country.

JFE Meranti Myanmar sees demand for flat steelproducts used for building roofs, walls and otherstructures expanding rapidly on the back ofeconomic development in Myanmar.Currently, most of these steel materials have to beimported, but the company reckons demand willsoon rise for locally produced, high-qualityproducts supported with technical services andshort lead times.Demand will be backed the growing number offoreign companies entering Myanmar, as theseinvestors are likely to build manufacturing plantsand facilities to operate, the company said in astatement. Meanwhile, local preferences areexpected to shift towards higher-end products asthe standard of living rises.JFE Meranti Myanmar will join the list ofJapanese companies preparing to operate inThilawa in the coming months. This includes carmaker Suzuki, which will open a manufacturingfactory in the SEZ next year.Source: Myanmar Timeshttps://www.mmtimes.com/news/steelmakers-among-latest-japanese-investors.html


08 Nov 2017


Logistics conference to spotlight e-commerce and Belt and Road

THIS year’s annual international logisticsconference will shed light on e-commerce in Asiaas well as China’s Belt and Road Initiative, withspeakers from Kerry group, Hutchison PortHoldings, DHL, COSCO group, Yamato GlobalLogistics Japan, Lazada, McKinsey and variousport authorities.The seventh Asian Logistics and MaritimeConference (ALMC) will be held on November 23-24 at the Hong Kong Convention and ExhibitionCentre (HKCEC). The two-day conference isjointly organised by the Hong Kong TradeDevelopment Council (HKTDC) and theterritory’s government.This year’s ALMC will spotlight three topics: theBelt and Road Initiative, e-commerce and smartlogistics. The event is expected to attract about2000 industry experts from some 20 countriesand regions to take part and explore businessopportunities.Stephen Liang from the HKTDC said that as theBelt and Road Initiative is turned from vision toaction, and the rapid development of logistictechnology is speeding up changes in the global

supply chain, there is a huge demand for logisticsand efficient ocean shipment services in Asia.“As the largest event of its kind in Asia, the AsianLogistics and Maritime Conference strives toprovide the ideal platform for the industry tolearn about the latest development and explorebusiness opportunities,” he noted.This year’s exhibition will feature over 120exhibitors showcasing supply chain management,logistics, maritime and related services.The “E-Commerce Support and TechApplications” zone will debut with a range offundamental toolkits -- such as documentmanagement and e-Commerce tools includingInternet security and real-time tracking system,offering professional and comprehensive servicesand solutions. The organiser will arrange morethan 140 one-on-one business-matching sessionsto help exhibitors and participants foster newbusiness collaborations during the event.Source: Myanmar Timeshttps://www.mmtimes.com/news/logistics-conference-spotlight-e-commerce-and-belt-and-road.html


09 Nov 2017

https://www.mmtimes.com/news/logistics-conference-spotlight-e-commerce-and-belt-and-road.html


China says will keep talking to Myanmar over stalled dam scheme

China said on Wednesday it will continue to talkto Myanmar about a controversial stalled damproject, after Myanmar’s new energy minister castdoubt over the scheme.Valued at $3.6 billion, the Myitsone dam projectin the north of the former Burma has been asticking point between the two countries since theprevious military-backed government suspendedwork in 2011.Reuters reported in April that officials in Chinaand Myanmar were discussing alternative optionsthat would allow Myanmar to scrap the massiveproject amid environmental concerns.Big hydropower dams are not a priority inMyanmar’s strategy to tackle chronic powershortages, Energy Minister Win Khaing toldReuters on Tuesday.Speaking in Beijing, Chinese Foreign Ministryspokeswoman Hua Chunying said China’sposition on the Myitsone dam had not changed,which was that China had always uphelddeepening cooperation with Myanmar on amutually beneficial basis.“The Myitsone hydropower station is a

commercial cooperation project both sides havealready agreed upon, and has already beenthrough a complete approval process,” Hua told adaily news briefing.“We will continue to maintain communicationwith the Myanmar side and proactively andappropriately handle the problems or difficultieswhich arise during cooperation on the project, toallow relevant cooperation to continue to develophealthily and stably,” she added.The proposed dam, on the upper reaches of theAyeyarwady river in Kachin state, would have sentmost of its power across the border to China’sYunnan province, which now has an oversupply ofelectricity as it switches to less energy-intensiveindustries amid an economic slowdown.A government panel set up in August 2016 wasstill reviewing the dam, Myanmar’s energyminister said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/china-says-will-keep-talking-myanmar-over-stalled-dam-scheme.html


09 Nov 2017


ANA joint venture falls through due to poor communications

JAPAN’S biggest airline All Nippon Airways isbacking out of a US$25 million local joint ventureafter a communications breakdown between theairline and government authorities. Thecollaboration could have resulted in the country’sfirst partnership with an international airline.The resulting Rashomon effect, with both sidesoffering contradictory accounts to the saga whichculminates in the collapse of the joint venture(JV), underscores a broader problem withMyanmar’s bureaucracy which is not uncommonto foreign companies seeking to do business in thecountry.On November 6, international news outletsreported that ANA had dropped a plan to form ajoint venture in Myanmar, after its application foran air operator’s certificate (AOC) was rejected byMyanmar authorities.The Japanese airline giant established the AsianBlue JV last year with domestic company GoldenSky World, which is owned by property-to-banking conglomerate Shwe Than Lwin. TheJapan-based airline giant had agreed to take a 49percent stake in the airline, which would have

focused on international routes, in anticipation ofincreasing market demand as the countryliberalises its economy.An ANA spokesperson could not provide a reasonfor the rejection but said that ANA is throwing inthe towel because it is still in the dark as to whentheir operations can move ahead. It has been ayear and a half since we started this company, butwe still cannot foresee a future where we canmove towards applying for an AOC,”When askedabout the possible reasons for rejection, thespokesperson responded, “We would like tokindly ask you to address this question to theMyanmar government.” For their part, officials atthe Department of Civil Aviation say they did notreceive an application by ANA for an AOC. “Wedid not reject their proposal because ANA didn’tapply for an AOC to the DCA,” U Ye Htut Aung,DCA deputy director general told The MyanmarTimes.Source: Myanmar Timeshttps://www.mmtimes.com/news/ana-joint-venture-falls-through-due-poor-communications.html


09 Nov 2017


Higher fuel import taxes to be tabled

The Myanmar Fuel Oil Importers andDistributers Association will submit theparliamentary proposal urging the government toraise the Special Commodities Tax on fuelimports, U Win Myint, secretary of theassociation, told The Myanmar Times.The move comes after a spike in local fuelconsumption and imports.For the first six months of the current fiscal year,Myanmar has imported up to 1.73 million tonnesof fuel worth some $1.3 billion.In comparison, the country imported almost 1million tonnes of fuel during the same period lastyear, according to U Khin Maung Lwin, deputysecretary of the Ministry of Commerce.Currently, there are no specific tariffs or quotason fuel imports to Myanmar. This has resulted inrising imports over the years as the number ofvehicles in the country also increases. Myanmarimports most of its fuel via sea. However, tradealso takes place at border towns such as Muse.Around 70 local and foreign companies are nowactively participating in the fuel import business.Import controls

U Win Myint said it is necessary to control thenation’s spending and reliance on fuel by reducingconsumption.“Fuel imports have risen substantially and moreand more of the country’s income is spent on it,”he said.“As we cannot restrict imports, we need to reviewhow we can reduce fuel consumption. One way todo so is to study how other countries are dealingwith this problem,” he added.Typically, countries manage fuel imports byimplementing a Special Commodities Tax on thequantity sold. In Singapore and Thailand, theSpecial Commodities Tax is as high as 20pc, but itis only 5pc in Myanmar.“In Myanmar fuel is cheaper because of the lowtaxes implemented by the government,” U WinMyint said.Consequently, the country has been consumingmore and spending freely on imported fuel.

Source: Myanmar Timeshttps://www.mmtimes.com/news/higher-fuel-import-taxes-be-tabled.html


10 Nov 2017

PwC | November 2017

2. Weekly Investment News

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PwC | November 2017

Weekly Key Investment NewsHeadlines

Singapore investors pile funds into Myanmar as interest rises

US beverage can maker Ball Corp to invest $26m more in Myanmar facility

Joint Venture Launching To Produce Flat Steel Products

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Actual FDI hits $ 2.8 bln this FY

IFC mulls extending $6m loan to India’s SLCM for agri finance facilitation in Myanmar


Singapore investors pile funds into Myanmar as interest rises

Yoma Strategic, an affiliate of Yangon StockExchange-listed First Myanmar InvestmentsCompany (FMI), has successfully closed aplacement of shares that will enable it to raiseS$82.2 million in fresh funds in Singapore, whereit is listed on the Mainboard of the SingaporeStock Exchange.In a November 5 statement, Yoma Strategic saidthe placement, which was oversubscribed,received interest from both existing and newinvestors.Under the placement, a total of115 million newshares were issued at 53 Singapore cents each,representing a discount of 9.4 percent to thevolume weighted average price of 58.5 Singaporecents per share for trades done betweenNovember 2 and November 3. The new shareswill represent 8.2pc of the enlarged share capitalof the company.The proceeds will be used to accelerate growth inthe company’s core real estate, automotive andheavy equipment as well as consumer-relatedbusinesses. At least half of the S$82.2 million inproceeds after deducting fees and expenses will be

channeled into Yoma Strategic’s real estatebusiness. This includes the building of rentalproperties and development properties at PunHlaing Estate and StarCity as well as the furtherdevelopment of two Dulwich InternationalSchools in Yangon.Meanwhile, up to 20pc of the proceeds will beinvested in the automotive and heavy equipmentbusiness, including capital expenditure for YomaFleet and New Holland tractors. The company isseeing high demand for its tractors and otherheavy equipment from the Myanmar agriculturesector. During the recent July-September quarter,it sold 600 tractors under a contract with theMinistry of Agriculture and Irrigation (MOAI).Itis due to deliver another 151 tractors to the MOAI.The Group will also invest 15pc-20pc of theproceeds to expand its chain of KFC stores inMyanmar, where KFC is currently available inYangon, Mandalay and Taunggyi. The companyopened its 16th KFC store on September 30.Source: Myanmar Timeshttps://www.mmtimes.com/news/singapore-investors-pile-funds-myanmar-interest-rises.html


03 Nov 2017


US beverage can maker Ball Corp to invest $26m more in Myanmar facility

U.S. can manufacturer Ball Corporation hassecured the approval to invest an additional $26.5million for its steel and aluminum canmanufacturing facility in Myanmar, according toan official from the Directorate of Investment andCompany Administration. Ball Asia Pacific(Yangon) Metal Container Limited commenced itsmanufacturing operations at the Thilawa SpecialEconomic Zone in November 2016. It is currentlyengaged in beverage can production. Theadditional investment was approved earlier thisyear and is part of the $60 million additionalinvestment from Ball Corp into the frontiermarket. The US firm has already invested $45million by the end of 2016. Ball’s Yangonoperations complement its expansion plans forthe Southeast Asian region adding to its jointventure operation in Vietnam which started in2012. In May 2014, Ball Corp announced settingup of a one-line beverage can manufacturing plantin Myanmar acknowledging the potential thatSoutheast Asia brings for the demand for suchcontainers. By November 2016, the firm openedits facility in Thilawa SEZ and started running the

plant with the capacity of between 450 to 500million cans per year, according to a previousinteraction with DEALSTREETASIA. Their facilitycovers a space of 50,000 square meters,employing about 100 staff people. Ball Corphappened to be the first company from U.S. tosign for the investment in the Thilawa SEZ, backin 2014 and also the first beverage canmanufacturing plant in Myanmar. Its currentcustomers include Coca-Cola, MyanmarBeverages Co, Ltd that produces Sunkist brand,Asahi Loi Hein for Blue Mountain brand and EuroAsia Commercial Ltd well-known for its Asia softdrink. Now, more packaging plants have come upin Myanmar to capture the untapped market.Malaysia’s Kian Joo Can (Myanmar) Co Ltdentered Myanmar by December 2015 and iscurrently in the process of completing the twomanufacturing facilities worth $100 million toproduce cans in tin and aluminum.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/ball-corp-add-26-m-can-production-85693/

NewspapersDeal Street Asia

06 Nov 2017


Joint Venture Launching To Produce Flat Steel Products

Tokyo — JFE Steel Corporation, Meranti Steel,JFE Shoji Trade Corporation, Marubeni-ItochuSteel, and Hanwa Co, announced today theiragreement to form a joint venture to produce andsell hot-dip galvanized and colored flat steelproducts for the building and construction sectorin Myanmar.The five companies will establish a manufacturingand sales company, JFE Meranti Myanmar Co.Ltd., in Myanmar through a Singapore-basedholding company, JFE Meranti Myanmar HoldingPte. Ltd. The joint venture will seek approval fromrelevant authorities to construct a new plant, andaim to launch operations in 2020. The plant is tobe located in the Thilawa Special Economic Zone(SEZ) with a total investment of approximately$85 million US dollars, according to a joint pressrelease.Since democratization of Myanmar in 2011, eco-nomic development has progressed dramatically.The demand is rapidly expanding for flat steelproducts for building and construction, such asroofs, walls and structures. Currently, most ofthese steel materials have to be imported, but the

need is expected to rise for locally produced high-quality products supported with technical servicesand short lead times. The demand will increase asforeign companies increasingly enter Myanmarand build manufacturing plants, and as customerpreferences shift to higher-end products as thestandard of living rises.The new joint venture aims to promptly launch itslines for hot-dip galvanization and coating tocapture the increasing demand for high-qualitythin-plate building materials. This will be the firstproject in Myanmar focused on manufacturinghigh-grade galvanized flat steel products.Meranti is a venture company with abundantknowledge of flat steel products for building andconstruction, for which it has conducted detailedstudies and marketing in Myanmar. The new jointventure plans to maximize customer satisfactionby leveraging the manufacturing technology andquality-control know-how of JFE Steel and theoverseas networks of JFE Shoji, MISI and Hanwa.Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/joint-venture-launching-produce-flat-steel-products


08 Nov 2017

https://www.mmbiztoday.com/articles/joint-venture-launching-produce-flat-steel-products


Actual FDI hits $ 2.8 bln this FY

From April to September of this year, the inflowof actual foreign investments into the countryreached US$ 2.8 billion though MyanmarInvestment Commission granted foreigninvestments worth US$ 4137.013 million.The MIC allowed foreign investments inagricultural, livestock and fishery, manufacturing,electricity, transportation and communication,hotels and tourism, real estate, industrial zoneconstruction and other service sectors.During this fiscal year, the country sees the influxof investments from Bangladesh, Brunei, China,France, Germany, Hong Kong, India, Indonesia,Japan, Macau, Malaysia, South Korea, Singapore,Sir Lanka, Thailand, the Netherlands, UK, US,Vietnam, Luxembourg, Samoa, Qatar, SouthAfrica, Taiwan and New Zealand.From 1988-1989 until September of this FY,China topped the list of foreign investors with aninvestment of more than US$ 74 billion, followedby Singapore. Take a look at the investmentsector, oil and gas sector stands first and energysector, second.Under the second five-year National

Comprehensive Development Plan (2016-2017 to2020-2021), the government has prioritizedexport promotion by encouraging foreigninvestments, private sector promotion, thetransformation of regional development projectsinto commercial cooperation and coordinationwith private investments for the benefits ofpeople.

Source: Elevenhttp://www.elevenmyanmar.com/business/12348

NewspapersEleven

09 Nov 2017


IFC mulls extending $6m loan to India’s SLCM for agri finance facilitation in Myanmar

International Finance Corporation (IFC), theWorld Bank‘s private lending arm, is planning toextend $6 million in loan to Delhi-based SohanLal Commodity Management Pvt Ltd (SLCM) togrow its commodity-backed finance facilitationoperations in Myanmar. IFC aims to provide a $3million loan from its own account and another $3million loan in its capacity as the implementingentity of the private sector window of the GlobalAgriculture and Food Security Program (GAFSP).The remaining funding for the project, which isestimated to cost $9 million in total, will comefrom SLCM as an equity investment and a short-term revolving credit facility from the Yangonbranch of the State Bank Of India. “The projectwill indirectly benefit farmers by improvingaccess to finance for agribusiness SMEs, agri-traders, and producer organizations, who will beable to purchase higher volumes of agriculturalproduce from farmers and properly store thegoods for longer periods,” IFC said in adisclosure. Led by CEO Sandeep Sabharwal,SLCM is backed by Nexus Venture Partners,Mayfield FVCI, Everstone Capital, Emerging India

Fund, Creation Investments Capital Management,responsAbility Investments AG, and theAgricultural and Rural Impulse Fund (agRIF). Aleading post-harvest agri supply chain solutionsprovider in India, its operations in Myanmar arehandled through a subsidiary, SLCM Myanmar.SLCM Myanmar’s warehouse managementprocesses will help with better storage of agri-commodities, thereby reducing post-harvestlosses, IFC noted in its disclosure. On average,post-harvest losses are estimated at about 20 percent in Myanmar.Myanmar has seen a strong inflow of foreigninvestment in the warehousing and logistics spacein the last past years. The Thilawa SpecialEconomic Zone has hosted quite a few suchbusinesses, including Yusen Logistics Co Ltd,Nittsu Logistics Myanmar Co Ltd, KonoikeMyanmar Co Ltd, Fujitrans Logistics Co Ltd,Dizen Myanmar Co Ltd, Free Trade IntegratedLogistics Co Ltd and Ryobi Holdings.Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/ifc-6m-loan-india-slcm-finance-facilitation-myanmar-86139/

NewspapersDeal Street Asia

09 Nov 2017

PwC | November 2017

3. Weekly New Tenders

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PwC | November 2017

Tenders (Myanmar Government)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/ .

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Myanmar South East Asia Disaster Risk Management Project: International Procurement Specialist, Closing Date: 17 Nov 2017 (Individual)

South East Asia Disaster Risk Management Project: Component 3 Preparation of Detailed Engineering Designs and Bidding Documents for the seismic retrofitting of 20 buildings in Yangon, and Construction Management and Supervision of the Works.Closing Date: 17 Nov 2017

Request for expressions of interest: Conducting baseline surveys un EU MY-Governance Program. Closing Date: 17 November 2017

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 | November 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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SC 109851 MYA: Urban Infrastructure Improvement in Yangon CityClosing Date: 15 Nov 2017 (Individual)

TA-9279 REG: Developing Judicial Capacity for Adjudicating Climate Change and Sustainable Development Issues - Legal Researcher (Myanmar) (50177-001)Closing Date: 18 Nov 2017 (Individual)

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/

PwC | November 2017

4. MIC Permitted Projects

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PwC | November 2017

MIC Permitted Projects (Meeting 14, 2017)

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No. Name of Company Type of Investment Form of Investment

1 International Bulk Terminal (Thilawa) Co., LtdConstruction and operation of a river port terminal and related warehouse, silo and other logistics facilities

Joint Venture

PwC | November 2017

5. Upcoming Events

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PwC | November 2017

Upcoming Events (November 2017) List

Date Location Name of Event Sector Price Focus Points

23-25 Nov 2017 Yangon Myanwater Water Free

Will provide a platform to the technical and professional experts related to waste management industry. Attendees will get a scope to improve and enhance their knowledge by attending this international trade show

29 Nov 2017 YangonMyanmar Satellite Forum & Exhibition

Technology $750

An opportunity for the global and regional satellite industry to meet with invited guests from Myanmar in broadcasting, B2B, government and homeland security. The Forum is part of the CommuniCast Myanmar event.

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PwC | November 2017

Upcoming Events (December 2017) List

Date Location Name of Event Sector Price Focus Points

07-09 Dec 2017 Yangon Agrilivestock MyanmarAgriculture and Livestock

Free

Agrilivestock will be attended by large numbers of exhibitors from both national and international arena. Exhibitor profile for this event will include modern agricultural machineries and equipment, tractors, cultivators, planting and harvesting machines, milling equipment, tillers, crop processing machineries, and so on.

08-11 Dec 2017 Yangon

Myanmar InternationalTextile & Garment Industry Exhibition

Garment Free

This event showcases products like Myanmar International Textile & Garment Industry Exhibition will be a premiere show, which will be concerned about the machines for textile and garments.

15-18 Dec 2017 YangonMyanmar AgrotekFoodtek

Machinery Free

The exhibitors of the event will be exhibiting some of the latest products and services in the event such as : Preprocessing, Injection & blow moulding, Recycling, Semi-finished products & technical parts, Rubber & Synthetic Fibre, Adhesives , Fillers, Extruders & extrusion lines.

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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 [email protected]

Brandon [email protected]

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