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PwC MyanmarWeekly Business Intelligence

Issue 12721 September 2018

www.pwc.com/mm

PwC | September 2018

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1. Weekly Key Financial & Business News

3


Weekly Key Financial & Business NewsHeadlines

Ride-hailing firm Get Ride officially launches in Myanmar after securing financing

Govt housing project in the red before development commences

Électricité de France director: 'Our goal is to get the most competitive financing possible'

New city project by Chinese firm raises hackles in Kayin

4

Trade with Indonesia to reach $1b in 2018


Weekly Key Financial & Business NewsHeadlines

Huawei urges Myanmar to back shared broadband construction

TVP invests in FMR to tap into Japanese clientele

Ygn government will start Elevated Expressway project in 2019

More than 10,000 apartments of public and staff housings to build in Mdy

5

Belt and Road project tenders open to non-Chinese: commerce minister

PwC | September 2018 6

Govt housing project in the red before development commences

While the Yangon Region government hasinjected K54billion into the development of theMahar Yangon new city project, construction hasyet to commence, according to a 2016-17 reportprepared by the Yangon Region Office of theAuditor General. Meanwhile, the project hasalready chalked up K11.6 million in costs.When it is complete, Mahar Yangon is expected toconsist of several housing projects, including theMayangone Villa housing project, Parami housingproject, civil servant housing and a mixed-useproject. It will also include a dry port industrialzone. Staff housing will be constructed to supportthe industrial projects.It is the first company established by thegovernment to oversee housing construction.However, it co-invested with MyanmarConstruction Development Public Company as ithas no experience in construction, said U SheinWin, director of the Metropolitan DevelopmentPublic Co.So far, land measurements have already beencarried out for the civil servant housing in DagonSeikkan township as well as for Mayangone Villa

and the dry port industrial zone.The regional government will fund theMayangone Villa project, which is beingdeveloped over 11.9 acres of land and will includesix buildings when complete. The project wastransferred to Yangon by the Urban and HousingDevelopment Department.The Yangon Metropolitan Development Public Cowas formed by the Yangon government to developand oversee the project. The Yangon governmenthas taken a 51 percent stake in the company,while Myanmar Construction and DevelopmentPublic Company (MCD), a private firm, moppedup the remaining 49pc.Auditor General Daw Khin Tha Hla warnedthough, that funds may be lost or wasted shouldunforeseen complications take place as a result ofthe transfer. As such, plans and a clear line ofmanagement should be drawn out to ensure theproject is successful.

Source: Myanmar Timeshttps://www.mmtimes.com/news/govt-housing-project-red-development-commences.html

NewspapersMyanmar Times

17 Sep 2018

https://www.mmtimes.com/news/govt-housing-project-red-development-commences.html


Ride-hailing firm Get Ride officially launches in Myanmar after securing financing

Get Ride, a homegrown ride-hailing platformmajority owned by the founder of Myanmar’sBOD Tech Ventures, officially launched itsoperations in Mandalay, the country’s second-most populous city, last week. The bike, tuk-tukand taxi-hailing platform is part of Get, anomnichannel digital commerce platformestablished in 2017 by early-stage tech investorMike Than Tun Win and fintech veteran NyeinChan Soe Win. Get has already secured capitalcommitments of nearly eight-digit US dollars,said BOD Tech Ventures founder and CEO MikeThan Tun Win in an interaction withDEALSTREETASIA at its Asia PE-VC Summit2018. Get seeks to emulate Go-Jek, theIndonesian unicorn that started as a motorcycle-hailing platform and has since diversified intofintech and a host of horizontal services. TheMyanmar startup plans to bring together serviceproviders that have been backed by BOD TechVentures on a single platform. These includeonline travel agency FlyMya, Get Digital Store,food delivery company Yangon Door2Door,mobile learning app DedaaBox and others. The

startup has announced that starting 2019, it willcharge a fee lower than its competitors based on arate agreed upon by its community of drivers andcustomers. It also plans to provide lifetimecommission-free services to motorbike drivers.“Being a local company with a team of leadershipexperienced in entrepreneurship, technology andfintech, Get Ride fundamentally understandsMyanmar and truly cares about building a ride-hailing platform that puts safety, reliability,convenience, and long-term sustainability for thewhole at its heart,” said Get CEO Nyein Chan SoeWin.The official launch of Get Ride comes about sixmonths after a beta launch that started in Januarythis year. It is now beta testing in two other majorcities, Yangon and Monywa, with plans to expandto one new city every month. Its goal is to coverall second-tier cities of Myanmar by the end of2019.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/myanmar-get-ride-launch-106667/

NewspapersDeal Street Asia

17 Sep 2018

https://www.dealstreetasia.com/stories/myanmar-get-ride-launch-106667/


Électricité de France director: 'Our goal is to get the most competitive financing possible'

In December 2015, state-owned utility companyÉlectricité de France signed a memorandum ofunderstanding with the government for the 1,050-megawatt Shweli-3 hydropower project innorthern Shan State.After several years of policy uncertainty, thegovernment is keen to move ahead withhydropower projects and at a power sectorworking group meeting on August 8, Minister forElectricity and Energy U Win Khaing said it wouldsoon issue notices to proceed to severaldevelopers, including EDF.Mr Yacine Chouabia, the company’s businessdevelopment director for tells Frontier’s ThomasKean about EDF’s plans for Shweli-3, which couldsee the size of the project scaled back.How significant is Shweli-3 for EDF?As a global utility company and a leader in low-carbon electricity solutions, we are able tosupport Myanmar in a variety of energy projects.Shweli-3 is definitely one of them.We are currently looking forward to thegovernment’s decision regarding the choice ofproject developer. This decision, referred to as a

notice to proceed, is an important step since it willenable the appointed company to move forwardand engage works on the project’s financingscheme.How did EDF identify Shweli-3 as a project itwanted to pursue?When the country opened to investors after 2011,we started looking for development opportunitiesin the region. The project was originallydeveloped by the Ministry of Electric Power'sDepartment of Hydropower Implementation andwe offered our support. We carried outpreliminary studies to assess the project’scompliance with our standards.With our experience in hydro energy, we areconfident about our capacity to bring a realadded-value in terms of optimizing the project’skey parameters – the size and installed capacity –and making it cost-efficient, while reducing as faras possible the environmental and social impacts.Source: Frontier Myanmarhttps://frontiermyanmar.net/en/electricite-de-france-director-our-goal-is-to-get-the-most-competitive-financing-possible

NewspapersFrontier Myanmar

17 Sep 2018

https://frontiermyanmar.net/en/electricite-de-france-director-our-goal-is-to-get-the-most-competitive-financing-possible


New city project by Chinese firm raises hackles in Kayin

The Kayin State Border Guard Force and JilinYatai Group of China launched the Shwe Kokkonew city project in Myawady township in the firstweek of August over the objections of localresidents.The residents are worried that the project’sgambling houses and entertainmentestablishments could have a corrupting influenceon young people, and that its airport, hotels andshopping centres could harm local businesses.Jilin Yatai Group was registered with theMinistry of Planning and Finance under the nameMyanmar Yatai International Trading Co Ltd inFebruary 2017. In mid-April, ground clearing andfencing work began, said Saw Aung Myo, wholives in Shwe Kokko Myaing, Myawady.“We don’t know if it was approved by thegovernment or the border guard. Since it is in thearea controlled by the border guard, they wereable to start just by informing the border guard,but they should have also informed localresidents. Now, we can’t even go near it,” SawAung Myo said.The project, which covers over 2000 acres along

the Thaungyin River and will cost an estimatedUS$15 billion (K23.35 trillion), applied forpermission to build from the MyanmarInvestment Commission in April 2017 and thestate government, according to Colonel Saw ChitThu of the border guard.Colonel Saw Chit Thu and Myanmar YataiInternational Trading Company signed apartnership agreement in September 2017,organised by the China Federation of OverseasChinese Entrepreneurs, before the plan receivedpermission from the commission.The commission announced that it grantedpermission for part of the initial phase of theproject on July 26 this year, specifically 25.5 acreswith a $22.5 million investment.According to figures released by the commission,the border guard contributed 20 percent of totalinvestment.

Source: Myanmar Timeshttps://www.mmtimes.com/news/new-city-project-chinese-firm-raises-hackles-kayin.html


18 Sep 2018

https://www.mmtimes.com/news/new-city-project-chinese-firm-raises-hackles-kayin.html


Trade with Indonesia to reach $1b in 2018

Trade between Indonesia and Myanmar hassteadily increased and is expected to reach US$1billion at the end of this year.“Figures show the continued development of bothcountries. I am confident that the total tradevolume will reach $1 billion at the end of 2018and this will be a new chapter for continuingimprovement of both countries and bilateraleconomy relation,” said Indonesia’s ambassadorIza Fadri. The total trade volume between twonations reached $973 million in 2017, and hasjumped by 31pc in 2018.The Indonesia and Myanmar business-matchingevent was held at Yangon Lotte hotel, organisedby the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)together with the Indonesian embassy.U Aung Soe, director-general of the commerceministry’s Myanmar Trade PromotionOrganisation, said that the bilateral trade volumeis expected to increase and will benefit both sides.Trade volume between Myanmar and Indonesiahas increased annually and the total trade volumereached $741 million in 2015-16 fiscal year, $827

million in 2016-17, $1,025 million for 2017-18.Indonesia ranks 14th in the list of foreign investor(by country) in Myanmar. State-ownedenterprises and private businesses fromIndonesia have made investments in the country,and sectors such as infrastructure, mining,construction, pharmaceutical, telecommunicationand banking are of particular interest.“I would like to encourage Indonesia investors tocome and invest in Myanmar in order to boostinvestment promotion between the twocountries,” U Aung Soe said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/trade-indonesia-reach-1b-2018.html


18 Sep 2018

https://www.mmtimes.com/news/trade-indonesia-reach-1b-2018.html


TVP invests in FMR to tap into Japanese clientele

Local financial advisory Trust Venture Partners(TVP) will make a minority investment intobusiness information firm Frontier MyanmarResearch (FMR).TVP will exclusively distribute FMR’ssubscription services on energy, financial services,real estate and transport infrastructure toJapanese clients, for whom TVP acts as a marketentry point into Myanmar.The two companies will also combine FMR’sresearch insights and TVP’s advisory services tosupport foreign and local investors in Myanmar,as well as local companies looking to raise funds.By integrating expertise and resources, thepartners will offer a single solution for marketresearch, financial advisory, fund raising and duediligence.The partners also hope to leverage TVP’sexpertise in financial advisory and FMR’scoverage through its Myanmar Financial ServicesMonitor and tap into the growing marketdemand.TVP chief executive officer Shinsuke Goto said“Once Myanmar’s financial market gains more

momentum, the demand for related financialservices such as corporate analysis reports willincrease.“Investors will require much more sophisticatedinformation than is currently provided. Small andmedium sized firms will not have the capacity toundertake this in-house,” he added.Alex Warren, CEO of Frontier MEA, FMR’s UK-based parent company, expected the partnershipto increase the reach and range of its businessresearch services.

Source: Myanmar Timeshttps://www.mmtimes.com/news/tvp-invests-fmr-tap-japanese-clientele.html


20 Sep 2018


Huawei urges Myanmar to back shared broadband construction

GIVEN THAT construction of a broadbandinfrastructure costs a fortune, Myanmar shouldencourage telecom operators and Internet serviceproviders (ISPs) to make collective efforts forbroadband investment, said Bill Lan, chiefnational broadband network strategist at HuaweiTechnologies Co.Lan said at the two-day Myanmar Connect 2018that infrastructure sharing would enable telecomoperators to drive in the fast lane on thedeployment of broadband infrastructure.“Construction cost is a major issue that makesbroadband infrastructure investment lessattractive for telcos,” he said.It is estimated that 70 per cent of broadbandinvestment will be spent on right-of-way (ROW)expenditure, site acquisition and civilengineering.According to the executive, Thailand sets a goodexample, thanks to the aerial fibre being deployedon electricity poles, which has saved 80 per centof construction costs and 40 per cent ofdeployment time over the past few years.“In most developing countries, public and private

ROW acquisition is an annoying issue foroperators who want to deploy or upgrade theirbroadband infrastructures,” he said.The process involves multiple managementauthorities, complicated administrative procedureand diverse acquisition fees – including anadministration fee, usage fee, environmentalrestoration fee – which not only slow down theapproval time but also make ROW acquisitionmore costly, he added.“Today, the development of broadbandinfrastructure is facing a variety of challenges,especially in terms of ROW acquisition, highconstruction cost and the difficulty of homeconnection,” he said.At the event, Lan stressed the importance ofbroadband connection, as ICT reshapes thesociety and accelerates socio-economictransformation.

Source: Eleven Myanmarhttp://www.elevenmyanmar.com/business/15151

NewspapersEleven Myanmar

20 Sep 2018

http://www.elevenmyanmar.com/business/15151


Ygn government will start Elevated Expressway project in 2019

YANGON- With the aim to reduce the traffic jamsand to create more job opportunities, YangonGovernment Committee discussed aboutimplementation of Elevated Expressway Projectwith International Finance Corporation (IFC).The project is expected to start next year,according to Union Minister of State Counsellor’sOffice Kyaw Tint Swe.Yangon Elevated Expressway is expected toprovide easy access to Yangon downtown, YangonInternational Airport, Yangon Port, ThilawaSpecial Economic Zone, Mindalardon IndustrialZone and Yangon-Mandalay highways. In orderfor the goals to be met, the Ministry ofConstruction has prepared a Request ForQualification (RFQ) and Preliminary InformationMemorandum (PIM).“As implementation of the elevated expresswayproject, we can solve the issue of traffic jams andalso will be creating many employmentopportunities at the same time,” said Kyaw TintSwe.The Ministry of Construction and IFC on January11th signed an advisory services agreement to

build an elevated expressway connecting YangonPort, Thilawa Special Economic Zone, YangonInternational Airport, Yangon Industrial Zoneand Yangon-Mandalay expressway.The 27 kilometer long elevated expressway willcost US$400 million with maintenance costs to bepaid for by collecting taxes.According to the agreement, the IFC will beentitled be the leading advisory corporation forconstruction of 4 lane elevated expressway projectwhich will be connecting from southern tonorthern part of Yangon.The IFC said it would implement a tenderselection process to choose an experienced andhigh-profile construction company with goodmanagement, diversified operations and high-quality maintenance capability.IFC also said the project will help develop theeconomy.



20 Sep 2018



More than 10,000 apartments of public and staff housings to build in Mdy

Companies will build over 10,000 apartments ofpublic and staff housings in Mandalay within atwo years time and 4,000 of them will bedeveloped under public-private partnership(PPP), said Union Minister Kyaw Tint Swe forState Counsellor’s Office during a ninth regularsession of Union Parliament held on September19.The government is implementing to developurban projects and industrial cities in big townslike Yangon and Mandalay to modernize urbandevelopment and housings systematically within athree-year time. It hoped investment made by thebusinessmen in housing sector will facilitate thecountry’s economic growth, he said.“A total of 5,748 out of 10,924 apartments forpublic and staff housings have finishedconstruction in the last two years. The rest are 70per cent finished. We will continue to finalize theapartments and over 10,000 apartments underPPP agreement will be built within two and a halfyears time,” he said.Anyone who wants to buy low-cost and affordablehousings with a long-term installment plan has to

open a housing savings account with a minimumof Ks10,000 in branches of Construction, Housingand Infrastructure Bank to meet 30 per cent ofthe cost.



21 Sep 2018



Belt and Road project tenders open to non-Chinese: commerce minister

The commerce minister said internationalcompanies will be invited to take part in Belt andRoad-related projects and that the tender processwill be transparent.As fractures between the internationalcommunity, especially Western countries, andMyanmar widen, Myanmar should tap into theresources and connectivity offered by China’s Beltand Road Initiative (BRI), analysts said. ButMyanmar’s participation must be based onresponsible investments and take into account therisks.This month, U Soe Win, Minister for Planningand Finance, signed an Memorandum ofUnderstanding regarding the China-MyanmarEconomic Corridor (CMEC), a key component ofthe BRI. U Tun Tun Naing, permanent secretaryfor the Ministry of Planning and Finance, told TheMyanmar Times that the government signed an“umbrella agreement”, while agreements onindividual projects will have to be negotiated bythe ministries from the two sides in the future.CMEC is a key component in BRI routes, coveringa highway project from China’s Yunnan Province

to Kyaukphyu via Mandalay, as well as for theMandalay-Yangon-Mawlamyine route. Beijing iskeen to speed up implementation of the proposedhighways but Myanmar has difficulties to catch upwith such expectations, given the country’sslowing economy and lacklustre investments fromEurope and the US.Political analyst U Ye Htut, a former MP fromThibaw constituency, said that Nay Pyi Tawsigned up to the deal quickly so as to secureChinese investments as well as Beijing’s supportfor the peace process.“China’s role in Rakhine affairs, peace mattersand investment is important for us. As we takepart in the BRI development, we accept that bothsides will be fairly benefited. We will share the[fruits of] Chinese development,” U Than Myint,commerce minister, said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/belt-and-road-project-tenders-open-non-chinese-commerce-minister.html


21 Sep 2018

https://www.mmtimes.com/news/belt-and-road-project-tenders-open-non-chinese-commerce-minister.html


2. Weekly Key Policy News

16


Weekly Key Policy NewsHeadlines

Renewable energy law in the works to speed up development

New policies unavoidable if Myanmar is to keep up in AEC

Govt bans MLM firms

17

National Planning Law Expects Highest Growth in Telecom, Industrial, Financial Sectors

Losses mount on lease of govt land, action needed


Renewable energy law in the works to speed up development

The Ministry of Electricity and Energy (MOEE) isdrafting a renewable energy law to develop thesector, said U Maung Maung Kyaw, ChiefEngineer from the Department of RenewableEnergy and Hydropower Plants under the MOEE.The ministry is aiming to generate 8 percent ofthe country’s electricity through renewablesources of energy by 2021. By 2025, the target isfor 12pc of all electricity generated in Myanmar tobe renewable.“We have plenty of natural resources such as solarand wind power. What’s lacking is legislation togovern the development of renewable energy.Without the law, investors are not protected andwe do not have a system for providing incentives,”said U Maung Maung Kyaw.“We understand the situation and will try to enacta law to govern renewable energy to speed updevelopment,” he added.The government will prioritise the developmentof solar energy, followed by wind energy, UMaung Maung Kyaw said.On the solar front, the state is currently building aplant in Minbu, Magway Region, which will have

the capacity to generate 170MW of electricitywhen it is complete in February next year. TheMinbu plant is the first solar powered plant inMyanmar.Two more solar plants are expected to beconstructed “soon,” U Maung Maung Kyaw said.The plants will be built in Myingyan andWundwin in Mandalay Region and are expectedto have the capacity to generate 150MW ofelectricity each.Meanwhile, an agreement has been signed forChina’s Three Gorges Corporation to develop a30MW wind power project in Chaung Thar,Ayeyarwaddy Region. It will be first such projectin Myanmar.Currently, the MOEE is negotiating terms for thepower purchase agreement. Development of theChaung Thar wind power project will commenceafter, said U Maung Maung Kyaw.

Source: Myanmar Timeshttps://www.mmtimes.com/news/renewable-energy-law-works-speed-development.html


19 Sep 2018

https://www.mmtimes.com/news/renewable-energy-law-works-speed-development.html


New policies unavoidable if Myanmar is to keep up in AEC

With just three months remaining before it is dueto join the Asean Economic Community (AEC),time is running out for Myanmar to improve itseconomic policies and prepare local businessesfor foreign competition.By January 1, 2019, Myanmar, together with theother CMLV countries, which includes Cambodia,Laos and Vietnam, will officially be part of theAEC.The AEC’s aim is for Asean to operate as a singlemarket and production base with equitableeconomic development among members. If it isrealised, the Asean market will enjoy freemovement of goods, services and investments aswell as freer flow of capital and skills.While the AEC will yield new opportunities forgrowth and development for Myanmarcompanies, it will also introduce challenges thecountry is currently far from prepared to face.It will, for example, introduce a new level ofcompetition for Myanmar businesses as newinvestors enter the market and traders look atother countries for better deals, especially sincethere are few good quality Myanmar-made goods

and brands fit for exports.Foreign competitionIn fact, foreign competition has already beenrising in the country since the governmentallowed investments in the retail sector in Maythis year. Now, local retailers say there should berestrictions placed on foreign firms that directlycompete with local SMEs and mom and popshops.Myanmar has around 3 million small conveniencestores that have run in the country for years.“These shops will face no small amount ofdifficulties if major retail chains like 7-Eleven, forexample, are allowed to enter,” said U Myo MinAung, deputy chair of communications andmember affairs at the Myanmar RetailersAssociation told The Myanmar Times.

Source: Myanmar Timeshttps://www.mmtimes.com/news/new-policies-unavoidable-if-myanmar-keep-aec.html


19 Sep 2018

https://www.mmtimes.com/news/new-policies-unavoidable-if-myanmar-keep-aec.html


Govt bans MLM firms

The Ministry of Commerce (MOC) on September18 issued notification (46/2018) which prohibitsthe business of multi-level marketing (MLM) inMyanmar. The ban will take effect immediately.Action will be taken against all MLM businessesfound to still be in operation after the date of theissued notification, under the Essential Suppliesand Service Law. The law states that those foundto be in violation of the regulations could bepunished with a minimum of six months up to amaximum of three years in jail. There will also bea fine not exceeding K500,000.The move comes after the Food and DrugAdministration (FDA) met with 41MLMcompanies and conducted audits on thecompanies’ books in February.“We are taking action after studying this field andhaving found that many consumers have fallenvictim to MLM strategies. At the regions andstates, some regional governments have alreadyprohibited MLM businesses from operating,” saidU Khin Maung Lwin, assistant secretary of theMOC.U Maung Maung, secretary of the Myanmar

Consumers Union, said his organisation has“always been opposed to MLM. We have beencalling for further regulation of this businessmodel as many consumers have been negativelyimpacted by MLM,” he said.

Source: Myanmar Timeshttps://www.mmtimes.com/news/govt-bans-mlm-firms.html


20 Sep 2018

https://www.mmtimes.com/news/govt-bans-mlm-firms.html


National Planning Law Expects Highest Growth in Telecom, Industrial, Financial Sectors

YANGON—Amid a slowing economy andcomplaints from the business community,Myanmar’s parliament has approved a NationalPlanning Law for the 2018-2019 fiscal year whichexpects to see the highest growth rate in thecountry’s telecommunications, industrial andfinancial sectors.On Wednesday, President U Win Myint signedthe bill with the approval of the Union Parliamentand it is to be effective from October 1 this year toSeptember 30, 2019.According to the National Planning Law, thegovernment expects to increase the growth ofGDP from 6.8 percent to 7.6 percent, while thetelecommunications sector is projected to grow by15 percent, the industrial sector by 11.2 percentand the financial sector by 9 percent in thecoming fiscal year.The law states that the government will makeefforts to improve the trade sector by 7.7 percent,the mineral sector by 7.5 percent and the socialmanagement sector by 7.3 percent.Meanwhile, a growth of only 4 percent is expectedin the fisheries sector, 2.9 percent in the energy

and electricity sector, 2.4 percent in agricultureand 1.1 percent in the forestry sector.The government projects that the highest growthrates will take place in Yangon Region, NaypyitawUnion Territory, and Kachin State with rates of9.8 percent, 9.6 percent and 9.3 percentrespectively.The relative ministries will draw upimplementation plans in order to facilitateimprovements across the sectors. The law alsoinstructs the government departments to make areview of all national projects and assess whetherthey are beneficial to the people or not. It statesthat projects must be suspended or canceled ifthey are found not to be beneficial to the people.The government departments need to compose alist of state-owned enterprises (SOEs) whichmake annual loses and suggests that they shouldbe converted to private enterprises, according tothe law.Source: The Irrawaddyhttps://www.irrawaddy.com/business/parliament-approves-2018-2019-national-planning-law.html

NewspapersThe Irrawaddy

21 Sep 2018

https://www.irrawaddy.com/business/parliament-approves-2018-2019-national-planning-law.html


Losses mount on lease of govt land, action needed

Even though the government is leasing out landand buildings at rates lower than then marketprice, no action has been taken to renegotiatethose rates and narrow the losses incurred by theState, according to the Yangon Region AuditorGeneral’s report for 2016-17.For example, the Department of Garden andPlayground Parks under the Yangon CityDevelopment Committee (YCDC) is leasing outshops within state-owned parks and aroundplaygrounds to private businesses under longterm rates that are now below market price.According to the report, these include shops andrestaurants at Kandawgyi, Kan Taw Min andMyaing Hay Won parks. Despite different shopsizes, the monthly rental fee for all businessowners at the park is fixed at K1 million, oraround K12 million per year. This is after the feeswere raised in 2017-18, resulting in impliedannual losses of about K2.1 billion for the YCDCagainst the market price. A total of 1,030 shopswere allowed to open in state-owned parks in2016-17.While the market price for leasing land is around

K1,000 per sq ft in Dagon, the government isaccepting rates at just K300 per sq ft, said U KyawZeya, regional MP from Dagon township. “Assuch, the government should re-auction the landat rates that are commensurate to the market,” hesaid, adding that discussions will be made inparliament to ensure transparency and equity inany new auctions or lease negotiations.According to the Auditor General’s report, thegovernment racked up losses involvingundervalued land projects totalling K14.2 billionin 2016-17. The projects include the Time CityProject, Kantharyar Tower Project,Shwemoekaung Luxury Housing, 45th StreetComplex Project and Golden Land Tower Projectin Yangon.The process of leasing out land for such projectsby the Urban and Land AdministrationDepartment lacked transparency even though theland is located in heavily populated townships.

Source: Myanmar Timeshttps://www.mmtimes.com/news/losses-mount-lease-govt-land-action-needed.html


21 Sep 2018

https://www.mmtimes.com/news/losses-mount-lease-govt-land-action-needed.html


3. Weekly Investment News

23


Weekly Key Investment NewsHeadlines

Korea-Backed Industrial Zone to be Developed in Hlegu Township

US power firm expands into Myanmar

Singapore’s Campana raises $40m from Mitsui, others for fiber cable expansion

24

TPG said to seal deal to become Myanmar’s biggest tower owner

Starbucks Coffee informs MIC of investment put on hold


Korea-Backed Industrial Zone to be Developed in Hlegu Township

The Ministry of Industry submitted a proposal toparliament for a $61.8 million loan from SouthKorea to build an industrial zone in Hlegu calledthe Korea-Myanmar Industrial Complex.The project will be developed on 600 acres of landwhere Nyaung Hna Pin Training School is locatedin Hlegu Township. The aim of the project is topromot investments and trade between the twocountries, to further develop the industry sector.We view this as an important step, so we shouldnot to lose any valuable time, Dr. Khon WinThaung, a lawmaker, said.This project is located close to Yangon — whichhas a metropolitan population of 7.6 millionpeople — and Hlegu is also close to Naypyidawand Mandalay highways as well. Moreover, fromHlegu it will take approximately 35 minutes todrive to Yangon International Airport, 60 minutesto drive to the proposed Bago Airport(Hantharwaddy Airport), and about 95 minutesaway from the Yangon Port located in AhloneTownship. Korean and Myanmar Companies canenter the market via those channels, he explained.The project is expected to lure investments from

South Korea and create job opportunities for anestimated 50,000 to 100,000 people whilesupporting the economic growth of HleguTownship. Moreover, it is expected to generatearound $10 million in revenue from 200companies operating the Zone, LieutenantGeneral Toe Lwin said.The Korea-Myanmar Industrial Complex will befunded with the loan from EXIM Bank of Korea,the Ministry of Industry reported to parliament.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/korea-backed-industrial-zone-be-developed-hlegu-township

NewspapersMyanmar Business Today

17 Sep 2018

https://www.mmbiztoday.com/articles/korea-backed-industrial-zone-be-developed-hlegu-township


US power firm expands into Myanmar

US-listed power management company EatonCorporation announced its expansion into theMyanmar market through a partnership withMyanmar Golden Rock International Co (MGR),which provides technology solutions in thecountry, on Septemer 18.Together with MGR, Eaton will bring its expertisein power management technologies to the datacenter, healthcare, utilities and commercialbuilding sectors with the aim of improving thereliability of existing and newly-developed powergeneration, transmission and distributioninfrastructure in the country.Kidsada Santisak, Eaton country manager forIndochina West, said Myanmar displays growthpotential in the power and energy market, withonly a third of the country’s population currentlyenjoying access to a stable supply of electricity.“Demand for power and energy solutions will onlygrow as the country races towards electrifying 100percent of Myanmar households, the primary goalset out in the Myanmar National ElectrificationPlan,” he said.Eaton is listed on the New York Stock Exchange

and headquartered in Ireland. The companyregistered sales of US$20.4 billion in 2017 andemploys some 96,000 globally.

Source: Myanmar Timeshttps://www.mmtimes.com/news/us-power-firm-expands-myanmar.html


19 Sep 2018

https://www.mmtimes.com/news/us-power-firm-expands-myanmar.html


Singapore’s Campana raises $40m from Mitsui, others for fiber cable expansion

Singapore-headquartered Campana Group, afixed line domestic and internet gateway dataoperator, has raised a $40 million Series B equityinvestment led by Tokyo-based Mitsui & Co, aglobal trading house, and existing individualinvestor Thein Htwe, the company announced ina release. The investment will play an importantrole in helping us continue our expansion intoMyanmar, Thailand, and Singapore, said Dr. MyoOhn, CEO, Campana. The financing will be usedfor the development of the SIGMAR submarinecable network, a 4-fiber pair that spans 2,200 kmconnecting Campana’s International Gateway(IGW) facility in Thanlyin, about 16 km south-eastof Yangon, to Tuas in Singapore. Campana willthen offer diverse fiber backhaul to Yangon andSingapore via open access points of presence(POPs,) creating a data center corridor betweenSingapore and Myanmar. “Branching units will beinstalled for both a future landing in Thailand andfor sub-sea interconnection with cables comingfrom the West,” according to the release. Apartfrom the equity funding, Campana is also raisingan additional debt facility of $40 million which is

expected to be closed over the next four months,said a company spokesperson during aninteraction with this portal. The company is inadvanced talks with international lenders for acommercial debt facility. Prior to the latestfinancing, the group raised $20 million from twopublic companies from Thailand, AdvancedInformation Technology Public Co Ltd and LoxleyPublic Co Ltd, and one from Singapore.Campana has already completed the TARO fibrecable that operates a cross border terrestrial routefrom Yangon to Thailand via Htee Kee at Dawei,the south eastern city of Myanmar. In addition toSIGMAR, the proceeds will also be used toaccelerate its growth in enterprise and cloudservices. The investments will lead to theconvergence of a submarine cable gateway,datacenter hub, connectivity, and cloud.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/singapores-campana-raises-40m-from-mitsui-others-for-fiber-cable-expansion-106580/


20 Sep 2018

https://www.dealstreetasia.com/stories/singapores-campana-raises-40m-from-mitsui-others-for-fiber-cable-expansion-106580/


TPG said to seal deal to become Myanmar’s biggest tower owner

US private equity major TPG has finalized a dealto fully acquire tower operator Pan Asia MajesticEagle, a rival to its portfolio company ApolloTowers, according to a report by the Nikkei AsianReview. According to the report, TPG has receivedgovernment approval for the deal. However, anofficial announcement is yet to be made. TPG wasfirst reported to be interested in the telecomtower deal in May this year. It was reportedlyplanning to merge the two telecom towercompanies and become the majority shareholderof the combined entity. The merged entity, whichis expected to have more than 3,000 towers andan enterprise value of at least $700 million, is setto surpass the current market leader, IrrawaddyGreen Towers, that has about 2,500 towers in thecountry. The 100 per cent cash acquisition of PanAsia and a share swap deal with Apollo’s minorityshareholders will leave TPG with an indirectownership in both companies. Apollo’s minorityshareholders, US-based Tillman Global Holdingsand AIM-listed Myanmar InvestmentsInternational will see their shareholding halved tojust under 7 per cent in the new company.

Meanwhile, TPG will eventually hold 80-85 percent of the new entity, said the Nikkei report. ThePE firm co-founded Apollo Towers with an initialinvestment of about $40 million from the TPGGrowth found in 2014, around the same time asthe country opened up its telecom market toforeign operators. It followed that up by investingin Myanmar Distillery Company in 2015 throughits TPG Capital Asia Fund. A little over two yearslater, TPG completed the country’s largest PE exitby selling its 50 per cent stake in MyanmarDistillery to Thai Beverage Public Co (ThaiBev)for about $494.4 million. The latest telecom towerdeal comes at a time when international investorsare concerned about the political and economicstate of affairs in Myanmar. Cambodia, Laos andMyanmar-focused Emerging Markets InvestmentAdvisors CEO Joshua Morris said Myanmar is infor a long, difficult ride as it battles these issues.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/tpg-myanmar-biggest-tower-owner-106998/


20 Sep 2018

https://www.dealstreetasia.com/stories/tpg-myanmar-biggest-tower-owner-106998/


Starbucks Coffee informs MIC of investment put on hold

American coffee franchise Starbucks informedMyanmar Investment Commission (MIC) thatthey have decided to suspend their investments inMyanmar, according to Director-General AungNaing Oo of Directorate of Investment andCompany Administration (DICA).On May 12, the Myanmar InvestmentCommission (MIC) endorsed Coffee ConceptsMyanmar Ltd (CCM), a wholly foreign-ownedfood and beverage services provider. CCM is theoperator of Starbucks in Myanmar, according tothe MIC. CCM was registered with the Directorateof Investment and Company Administration inDecember 2017, a DICA document reveals.Starbucks, which was founded in 1971, has opened27000 stores around the world, includinglocations in Asia in Brunei, Cambodia, Indonesia,Malaysia, Philippines, Singapore, Thailand andVietnam. It had planned to open up at least 20stores across Myanmar.According to 2017 data, there are 300 stores inthe Philippines, 264 stores in Thailand, 249stores in Indonesia, 220 stores in Malaysia, 125stores in Singapore, 28 stores in Vietnam, 7 stores

in Cambodia and 4 stores in Brunei.Coffee Concepts Ltd is based in Hong Kong and ispartners with Starbucks. Coffee Concept(Myanmar) was established in December 2017.



21 Sep 2018



3. Weekly New Tenders

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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/ .

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Yangon Region Government, Expression of Interest, Upgrading and Renovation of Yangon City Golf Course on BOT Basis, Closing Date: 28 September 2018

Naypyitaw Development Committee, Invitation of Expression of Interest (EOI) for long-term lease in Naypyitaw Cement Factory, Closing Date: 16 November 2018

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/


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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ADB: Sustaining the Gains of Regional Cooperation in the Greater Mekong Subregion -Transboundary Livestock Disease Control Specialist, Closing Date: 25 September 2018

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/


4. MIC Permitted Projects

33


MIC Permitted Projects (Meeting 15, 2018)

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No. Name of Company Type of Investment Form of Investment

1 Stream Net Co., Ltd Telecommunications serviceMyanmar Citizen Investment

Source: DICA


5. Upcoming Events

35


Upcoming Events (September 2018) List

Date Location Name of Event Sector Price Focus Points

26-28 Sep 2018 Yangon Agri Myanmar Agriculture Free

“Agri Myanmar 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.”

36

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


Upcoming Events (October 2018) List

Date Location Name of Event Sector Price Focus Points

11-13 Oct 2018 Yangon Mining Myanmar Mining Free

“showcases product from Minerals, Metals & Ores industry. This event showcases product from Minerals, Metals & Ores industry. like will provide companies with opportunities to see first-hand the potential in Myanmar's Mining sector”

11-13 Oct 2018 YangonBuilding & Construction Myanmar

Construction Free

“showcases product from Building Construction industry. This show will meet the need and demand of the construction industry”

26-28 Oct 2018 Yangon Myanmar Water Water Free

“This event will provide a platform to Meet and connect with over 5,000 quality visitors including water and wastewater industry's professionals, trade buyers, distributors, government representatives, Small and Medium Enterprises, thought leaders and visionaries for building new partnerships and proactive business opportunities”

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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

© 2018 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:

Jovi SeetSenior Executive [email protected]

Brandon [email protected]

38

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