PwC Myanmar Weekly

Business Intelligence
Issue No. 201

23 February 2020
 Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events

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23 February 2020
PwC PwC Myanmar Weekly Business Intelligence 2
PwC Myanmar Weekly Business Intelligence
MIC
Financial and Policy and Tender Upcoming
Issue - 201, 23 Feb 2020 Business
Infrastructure
Regulation Opportunities
Permitted
Events
Projects

Infrastructure
Infrastructure
Highlights
• “Yangon Investment Forum which is scheduled for February is suspended due to the spreading of
Transport
coronavirus, said U Thant Zin Lwin, Secretary of MIC. The investment forums are scheduled to
take place in Yangon, Sagaing, and Bago Regions during this year.” • Yangon Water Bus to use Singapore, Thai ferries when service resumes
• “Myanmar plans to let some foreigners trade local stocks from March, in an initial step toward • Govt. to build US$160 M worth Thilawa-Bago road
expanding the country’s small bourse. Expatriates residing in the nation will be the first allowed to • Grab bags $700m from Mitsubishi UFJ
trade on the Yangon Stock Exchange, with permission for other foreigners coming later in stages,
Htay Chun, a commissioner at the Securities and Exchange Commission of Myanmar” Energy

• “Myanmar will start the process of disbursing loans supported with credit assessments from the • New gas field discovered in offshore Rakhine
Myanmar Credit Bureau by April, Daw Than Than Swe, director general of the Financial Institutions • NEP Phase 1 to be finished at the end of Sept
Supervision Department under the Central Bank of Myanmar”
• Chinese company granted licence to explore Block D
Real Estate
Financial and Business • China keen to invest in Dawei SEZ
• Industrial zone in Kyaukphyu SEZ to be built at $30m
• Yangon Investment Forum suspended due to virus fear
• Taxpayers bear the costs of loss-making steel factory in Mandalay
• Transparency and corporate governance will benefit Myanmar economic growth: UK trade envoy
Waste and Water
• KB Kookmin Bank prepares to expand in Myanmar
• Wild waters: Kachin
• Myanmar prepares to let foreigners trade local stocks from March
• World Bank: Myanmar Must Push Deeper Reform for Inclusive Economic Growth
Other Infra
• Delivery app starts service in Yangon
Policy and Regulation • Three foreign companies withdraw investments from Thilawa SEZ
• DaNa Facility Unveils Report on Kachin State’s SME Ecosystem
• e-Government system crucial for country’s development: State Counsellor
• Myanmar Credit Bureau to commence operations in April
• Only 5% of land purchase applications in Yangon valid: officials
• Yangon MPs Draft Bill to Rein In Mismanagement of Public Funds
23 February 2020
• Myanmar Reportedly Set to Be Placed on Global Money-Laundering Watchlist
PwC 3
Financial and Business

23 February 2020
4
 Financial and Business
Yangon Investment Forum suspended due to virus fear
21 Feb 2020
Yangon Investment Forum which is scheduled
for February is suspended due to the spreading
of coronavirus, said U Thant Zin Lwin, Secretary
of Myanmar Investment Commission (MIC)
The investment forums are scheduled to take
place in Yangon, Sagaing, and Bago Regions
during this year.
Currently, there is no plan to suspend Sagaing
Investment Forum scheduled for March.
Following the outbreak of coronavirus, the
number of Chinese businesspersons who will
discuss the Directorate of Investment and
Company Administration (DICA) has declined.
But there is no cancellation of agreed
investments, he added.
The spreading of coronavirus in China may lead
to stagnant businesses not only in Myanmar but
also in China. It may have a knock-on effect on
the countries which have economic relations with
China.
“Border areas see temporary suspension.
Cambodia and Thailand quarantine the
suspected people for 14 days. Myanmar also
needs to monitor the tourists,” he added.
Yangon Investment Forum (2018) was held at
Novotel Hotel in Yangon on 9 May 2018 and
Yangon Investment Forum (2019), at Lotte Hotel
PwC PwC Myanmar Weekly Business Intelligence
Financial and Business
on 10 May 2019.
At Yangon Investment Forum (2019), Myanmar
State Counsellor Daw Aung San Suu Kyi said the
government would create a favorable,
transparent business environment for investors.
She also urged businesspersons to grasp
investment opportunities in Yangon Region. In a
bid to bring about economic growth for future
Myanmar, the government on its part would
extend a helping hand to investors.
Source: Consult Myanmar
https://consult-
myanmar.com/2020/02/21/yangon-investment-
forum-suspended-due-to-virus-fear/
Infrastructure Policy and Regulation Tender Opportunities
Myanmar aviation sector expected to become
profitable, but more pain ahead first
27 Jan 2020
Myanmar’s aviation industry is betting on a more
profitable future with the number of airlines now
reduced to half compared to 2017 and demand
for domestic air travel expected to catch up with
supply. However, they will have to swallow more
losses in the short term before things get better.
There are currently five airlines in Myanmar,
down from ten three years ago. But even though
there are fewer players now in the market, the
volume of passengers flying domestic remains
below three million, according to government
data.
At those levels, demand is not sufficient to cover
the industry’s losses, U Kyaw Nyein, CEO of
Golden Myanmar Airlines (GMA), told The
Myanmar Times in a recent interview.
But profitability is possible in the years ahead,
making it a good time for the remaining airlines to
accelerate their plans for expansion to capitalise
on future demand, according to a 2019 report by
the Centre for Asia Pacific Aviation.
Last year, GMA took delivery of a new aircraft,
taking its current fleet of ATR-72s to three. “With
the additional seats, we can now fly daily
compared to alternate days before. We will also
extend our destinations to include more flights to
Dawei and Kaw Thaung, which could be potential
MIC Permitted Projects Upcoming Events
tourist attractions in the future,” U Kyaw Nyein.
Air KBZ has also been expanding. Last year, it
upgraded its fleet of planes and announced new
destinations to Dawei , Kaw Thaung , Myeik,
Sittwe, Kyaingtong, Hkamti and Loikaw. its sister
airline, Myanmar Airways International, added a
new Airbus A319 to its fleet, expanding its
capacity by 144 passengers.
Tanes Kumar, commercial director for Air KBZ,
said even though the new routes are not yet
profitable, the main aim of adding new
destinations is to expand the airline’s network
and connectivity. “This gives passengers more
options and allows employees to learn new skills
for more expansion in the future,” he said.
Source: Myanmar Times
https://www.mmtimes.com/news/myanma
r-aviation-sector-expected-become-
profitable-more-pain-ahead-first.html
23 February 2020
5
 Financial and Business
Transparency and corporate governance will benefit
Myanmar economic growth: UK trade envoy
18 Feb 2020
Myanmar needs to ensure that its economic
growth is “a force for good” for the country’s
transition to democracy, said Paul Scully, the UK
Prime Minister’s trade envoy to Myanmar, during
his visit to the country this month.
Speaking at the launch of the Myanmar Centre
for Responsible Business’s Pwint Thit Sa 2020
assessment, Mr Scully, whose father and
grandfather are half-Burmese, said one way to
ensure that economic growth makes a positive
impact on Myanmar is for businesses to be
responsible in their governance and practices.
The trade envoy’s visit came as the UK has
formally left the European Union and after
Chinese leader Xi Jinping’s historic visit to
Myanmar. It reflects the changing approach of
the UK in Myanmar as well as the Southeast
Asian region under Prime Minister Boris
Johnson. Britain recently appointed its first
ambassador dedicated to the Association of
Southeast Asian Nations (ASEAN) and is
expected to scale up its engagement with the
region.
The visit also signals that the UK is keen to
engage with Myanmar and support its transition,
including economic reforms, amid the
international backlash over Myanmar’s treatment
PwC PwC Myanmar Weekly Business Intelligence
Financial and Business
of the Muslim minority in northern Rakhine.
Between 2011 and 2016 Myanmar’s GDP has
grown by an average of 7.3 percent annually and
11.8 million people have been lifted out of
poverty in 12 years, Mr Scully pointed out. Under
the National League for Democracy-led
government, the growth rate has slowed slightly
but is still above 6pc.
“But growth on its own is not enough. To build a
bright future for its people Myanmar must make
progress across the board - on inclusion, on
conflict, on politics. In all of this, growth can play
a positive or negative role - we need to ensure
economic development is a force for good,” said
the British lawmaker.
While aid programmes are important, foreign
investments committed in Myanmar are more
than triple the amount of international
development assistance, he said.
Source: Myanmar Times
https://www.mmtimes.com/news/transparency-
and-corporate-governance-will-benefit-myanmar-
economic-growth-uk-trade-envoy.html
Infrastructure Policy and Regulation Tender Opportunities
KB Kookmin Bank prepares to expand in Myanmar
19 Feb 2020
KB Kookmin Bank (KB), South Korea’s largest
bank, is preparing to acquire a corporate license
permitting it to sell advanced financial products in
Myanmar.
The bank plans to introduce new financial
instruments and services in retail banking, such
as housing and SME finance, corporate finance,
including trade finance and infrastructure finance,
digital banking and personal banking services.
KB is Korea’s No.1 housing finance bank. Kim
Chang-woo, head of KB Yangon office, said KB
will leverage on its cooperative ties with the
Ministry of Construction and share its know-how
in housing financial products and services.
Mr Kim added that KB micro-financing unit, KB
MFI, has provided micro-housing financial
products for low-income householders for the
first time in Myanmar. As of the end of 2019,
approximately K12 billion has been distributed to
about 4,000 households at a lower rate than
products by other microfinance institutions.
KB, which is also No.1 in digital banking in
Korea, will digitise the funds dispatch process in
Myanmar with the aim of effectively preventing
illegal remittances, or the usage of illegal Hundis,
by migrant workers.
The bank, which is also a top provider of
MIC Permitted Projects Upcoming Events
syndicated loans in Korea, has agreed to
cooperate with the Ministry of Planning, Finance
and Industry to privatise state-owned enterprises
and promote projects under Public Private
Partnerships.
In addition, KB plans to promote the Korea
Myanmar Industrial Complex in Hlegu township,
Yangon, to their numerous corporate clients in
South Korea and draw them to do business in
the industrial zone. With active engagement by
KB, which has the largest market share of
corporate financial loans among Korean banks,
foreign direct investment inflows from Korean
companies to Myanmar is expected to increase.
KB will also conduct financial and accounting
education programmes in Myanmar to activate
small and medium-sized enterprises. Moreover,
as the No. 1 bank of Small Office Home Office
(SOHO) finance in Korea, KB will introduce
advanced and diverse SOHO loan products and
services for the purpose of providing financial
support for SMEs.
Source: Myanmar Times
https://www.mmtimes.com/news/kb-kookmin-
bank-prepares-expand-myanmar.html
23 February 2020
6
 Financial and Business
Myanmar prepares to let foreigners trade local stocks
from March
19 Feb 2020
Myanmar plans to let some foreigners trade local
stocks from March, in an initial step toward
expanding the country’s small bourse.
Expatriates residing in the nation will be the first
allowed to trade on the Yangon Stock Exchange,
with permission for other foreigners coming later
in stages, Htay Chun, a commissioner at the
Securities and Exchange Commission of
Myanmar, said in an interview Tuesday in
Yangon. Allowing foreigners to buy stocks is one
of the ways Myanmar hopes to bolster its
otherwise moribund Myanpix equity index, which
is almost four years old but has only five stocks.
Critics say the long-delayed step is an example
of the slow pace of regulatory change in the
Southeast Asian nation. Myanmar also plans to
establish a second board with looser listing rules
than the main market. Htay Chun said foreigners
would be allowed to trade on the second board,
and that it may be set up by the third quarter of
the year. “We’re aiming to have as many as 10
companies on the second board when it
launches,” he said. Foreigners could make up
15% of Myanmar stock trading initially, rising to
as much as 40% eventually, Ryota Sugishita,
chief consultant at Japan’s Daiwa Institute of
Research, said last year. Corporate Bonds
PwC PwC Myanmar Weekly Business Intelligence
Financial and Business
Existing rules allow overseas investors to own a
maximum 35% of a local company. Firms must
meet 17 criteria to be eligible for listing on the
main board, such as being profitable for at least
two years and having a minimum of 100
shareholders. In the bond market, the securities
regulator is working toward a framework that
would allow companies to issue bonds potentially
as early as the second half of 2020, Htay Chun
said. Public backing from senior politicians like
de facto leader Aung San Suu Kyi would help
Myanmar to deepen its capital markets, he said.
“If they stressed the importance of the capital
markets, more people would be interested in
investing here,” Htay Chun added.
Source: Deal Street Asia
https://www.dealstreetasia.com/stories/myanmar-
stocks-175529/
Infrastructure Policy and Regulation
World Bank: Myanmar Must Push Deeper Reform for
Inclusive Economic Growth
YANGON—The World Bank’s latest research
says Myanmar needs deeper reforms to achieve
strong and continuing economic growth,
including steps to strengthen financial
management, promote peace and enhance
environmental sustainability.
The new World Bank report “Myanmar:
Economic Transition Amid Conflict; A Systematic
Country Diagnostic,” says the government needs
to implement these deeper reforms to ensure
long-lasting and inclusive growth across the
country.
According to the report, Myanmar’s existing
reforms have generated immediate gains by
reducing fiscal deficits and supporting a more
independent central bank to lower inflation and
unify the exchange rate. They have also opened
up telecommunications and manufacturing
sectors to foreign investors as a means to
increase employment rates.
However, the World Bank said that Myanmar’s
reforms also need to support infrastructure and
efficient markets in order to secure long-term
economic progress.
According to the bank, these reforms will be
harder to implement but the benefits can be
longer lasting—reforms such as raising electricity
Tender Opportunities MIC Permitted Projects Upcoming Events
19 Feb 2020
tariffs to cost-recovery levels while protecting
low-income users; following through on well-
regulated foreign investment in the banking,
insurance and retail sectors; and gradually
deregulating bank interest rates
The bank said these reforms will stimulate the
private sector by increasing competition and
connecting people to services and markets
regardless of region and demographic.
The research found that the momentum of
Myanmar’s transition has slowed recently and
said the government must push strong policies to
accelerate growth and ensure that benefits are
shared more widely.
The bank said that Myanmar’s weak responses
to the Rakhine crisis and heightened violence in
Kachin, Shan and Chin states have illustrated
major challenges to inclusive development.
According to the bank, economic growth
decelerated from 8 percent in 2014-15 to 6.2
percent in 2017-18.
Source: Irrawaddy
https://www.irrawaddy.com/news/burma/world-
bank-myanmar-must-push-deeper-reform-
inclusive-economic-growth.html
23 February 2020
7
Infrastructure

23 February 2020
8
 Infrastructure
Yangon Water Bus to use Singapore, Thai ferries when
service resumes
20 Feb 2020
The Yangon Water Bus river transport service
has ordered passenger ferries from Singapore
and Thailand to replace its old vessels once it
resumes operation, the company that runs the
line said.
Daw Tint Tint Lwin, chair of Tint Tint Myanmar
Co., said it has also sought the help of a
Singapore company in linking its fare payment
system to local mobile banking services KBZ Pay
and CB Pay.
“We are cooperating with a Singapore company
for technical support,” she said. “We are devising
a profit-sharing scheme, but we will take care of
the investment.”
The service, which operates on the Yangon
River, has been criticised for delays and slow
vessels.
It started running in 2017 but suspended
operations in September last year to test new
vessels. It does not know when it will resume
service.
Daw Tint Tint Lwin said there have been delays
in the installation of payment machines on the
vessels.
“They need one more month,” she said. “Also,
we are building jetties. We will be running soon
with seven ferries imported from Thailand and
PwC PwC Myanmar Weekly Business Intelligence
Transport
Financial and Business
Singapore,” she added.
Two ferries will service the Insein-Botahtaung
route, while five ferries will service Nga Moe Yeik
street, she said.
The regional government implemented the river
service to reduce traffic congestion and cut the
waiting time for buses, but some commuters did
not find it convenient due to its jetty terminals
being too far from bus stops.
The estimated cost of the project is US$20
million to $37 million, funded with a loan from
KBZ Bank.
Source: Myanmar Times
https://www.mmtimes.com/news/yangon-water-
bus-use-singapore-thai-ferries-when-service-
resumes.html
Infrastructure Policy and Regulation Tender Opportunities
Myanmar aviation sector expected to become
profitable, but more pain ahead first
27 Jan 2020
Myanmar’s aviation industry is betting on a more
profitable future with the number of airlines now
reduced to half compared to 2017 and demand
for domestic air travel expected to catch up with
supply. However, they will have to swallow more
losses in the short term before things get better.
There are currently five airlines in Myanmar,
down from ten three years ago. But even though
there are fewer players now in the market, the
volume of passengers flying domestic remains
below three million, according to government
data.
At those levels, demand is not sufficient to cover
the industry’s losses, U Kyaw Nyein, CEO of
Golden Myanmar Airlines (GMA), told The
Myanmar Times in a recent interview.
But profitability is possible in the years ahead,
making it a good time for the remaining airlines to
accelerate their plans for expansion to capitalise
on future demand, according to a 2019 report by
the Centre for Asia Pacific Aviation.
Last year, GMA took delivery of a new aircraft,
taking its current fleet of ATR-72s to three. “With
the additional seats, we can now fly daily
compared to alternate days before. We will also
extend our destinations to include more flights to
Dawei and Kaw Thaung, which could be potential
MIC Permitted Projects Upcoming Events
tourist attractions in the future,” U Kyaw Nyein.
Air KBZ has also been expanding. Last year, it
upgraded its fleet of planes and announced new
destinations to Dawei , Kaw Thaung , Myeik,
Sittwe, Kyaingtong, Hkamti and Loikaw. its sister
airline, Myanmar Airways International, added a
new Airbus A319 to its fleet, expanding its
capacity by 144 passengers.
Tanes Kumar, commercial director for Air KBZ,
said even though the new routes are not yet
profitable, the main aim of adding new
destinations is to expand the airline’s network
and connectivity. “This gives passengers more
options and allows employees to learn new skills
for more expansion in the future,” he said.
Source: Myanmar Times
https://www.mmtimes.com/news/myanmar-
aviation-sector-expected-become-profitable-
more-pain-ahead-first.html
23 February 2020
9
 Infrastructure
Govt. to build US$160 M worth Thilawa-Bago road
22 Feb 2020
Myanmar is planning to build Thanlyin (Thilawa)-
Bago (Kamarse) Road connected with Asia
Highway Road with the aid of JICA and ADB
soon, according to Ministry of Construction.
“We have a plan which is aided by the JICA and
ADB. All vehicles coming from Thalyin to Yangon
have to go to Htaukkyant through Bago before
coming to Yangon. Cars coming from Pyay are
jammed on the roads leading to Yangon. That’s
why we planned to build the new road,” said
Kyaw Lin, Deputy Minister for Construction.
“The old road is leading to Bago before crossing
the river to Mawlamyaing and Hpa-an. The new
road is directly connected between Thanlyin and
Kamarse. So Asia Highway Road will be
connected with Thilawa via this road,” said an
official from the ministry.
The new road will connect Thilawa industrial port
to lower areas of Myanmar such as Mon and
Kayin states and Taninthayi Region in a short
time. Moreover local products will be sent
through this new road to other countries via
Thilawa industrial port in a short time.
The new road will be shorter than Yangon-
Bayargyi-Sittaung Road currently using now and
it will also deal with traffic jams.
The road will help to access from Kyaikhto to
PwC PwC Myanmar Weekly Business Intelligence
Transport
Financial and Business
Mae Sot, Thailand through Kawkayeik-Myawady
in Kayin State, from Kyaikhto to Bangkok,
Thailand through Mawlamyaing-Thanphyusayet
in Mon State, from Dawei deep seaport to
international ports, from Mawtaung to Bangkok,
Thailand through Kawthoung, according to the
ministry.
Source: Eleven Myanmar
https://elevenmyanmar.com/news/govt-to-build-
us160-m-worth-thilawa-bago-road
Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Grab bags $700m from Mitsubishi UFJ
years
20 Feb 2020
Japan’s Mitsubishi UFJ Financial Group Inc is Airport.
investing more than US$700 million in ride- Grab will expand its services to other key cities in
hailing firm Grab. Myanmar this year. GrabFood will be launched
The Japanese financial institution intends to for local restaurants and transportation partners
market a range of financial services from in Mandalay this year.
insurance to loans to Grab’s users, Bloomberg In 2018, Grab launched its Grab Thone Bane
quoted a source as saying. (three-wheeler) service in Bagan and Mandalay
Grab is also backed by Japan’s SoftBank Group city, and Grab TaxiPlus service.
Corp, which has invested more than $2.6 billion Grab launched its service in Myanmar in July
in the app. 2017, and has since introduced Grab Taxi Call
The startup said its app has been downloaded service, Premium Rentals (Beat), and Grab
onto more than 166 million mobile devices in the Food.
region. It is trying to build a regional super-app
that offers a range of services including finance,
payments and rides.
In Myanmar, Grab has invested over $100 million
(K143.5 billion) in the past four years to
strengthen its position on the local taxi market.
The company’s taxi service experienced an
increase of 10 percent in daily rides in 2019 from
the previous year, and added more than 196,000
more precise location points in the Grab
application.
The number of companies using Grab for
Business also doubled in 2019, and the most Source: Myanmar Times
popular destinations for rides were Myanmar https://www.mmtimes.com/news/grab-bags-
Plaza, Junction City, and Yangon International 700m-mitsubishi-ufj.html
23 February 2020
10
 Infrastructure
New gas field discovered in offshore Rakhine
17 Feb 2020
South Korean conglomerate Posco International
Corporation has discovered a new gas field in
Block A3 at the Shwe natural gas project located
offshore Rakhine, The Myanmar Times
understands.
The company confirmed that it had found a gas
column of around 18 meters at its Mahar-1
exploration well after it began exploratory
undersea drilling in Block A3 last month.
The discovery was made more than 2,500
meters into the seabed and could yield about 38
million cubic feet of natural gas per day, the
Korea Herald has reported.
Posco International was also quoted as saying
that it plans to drill a couple of appraisal wells at
the site from 2021 and development plans for the
field will be established 2-3 years later.
The Shwe natural gas project consists of Blocks
A1 and A3. There are currently two existing gas
fields - Shwe and Shwe Phyu - at A1. Up until
Posco International's Mahar-1 discovery, there
was only one gas field - Mya - in A3.
Posco International has a 51 percent stake in
the Shwe natural gas project, while Myanma Oil
and Gas Enterprise, KOGAS and Indian
companies Oil and Natural Gas Corporation and
Gail Limited hold the remaining 49pc.
PwC PwC Myanmar Weekly Business Intelligence
Energy
Financial and Business
Shwe is a 35-year project with a remaining 29-
year term. Commercial drillings have already
started in A1, and will commence at the Mya gas
field in A3 in 2025.
Source: Myanmar Times
https://www.mmtimes.com/news/new-gas-field-
discovered-offshore-rakhine.html
Infrastructure Policy and Regulation Tender Opportunities
Grab says it pumped $100M into Myanmar in
four years
12 Feb 2020
Ride-sharing company Grab has invested over
US$100 million (K143.5 billion) in Myanmar in
the past four years to strengthen its position on
the local taxi market, a senior company official
said Tuesday.
Cindy Toh, country manager for Grab, said the
company will continue investing to further
improve the quality of its service in Myanmar.
“Grab will emphasise service quality and safety,
not only technology,” she told a briefing. “We will
continue investing in expansion and partnerships
to better the platform and expand the
ecosystem.”
Grab launched its service in Myanmar in July
2017, and has since introduced Grab Taxi Call
service, Premium Rentals (Beat), and Grab
Food.
The company’s taxi service is popular and
experiencing an increase of 10 percent in daily
rides in 2019 from the previous year, and adding
more than 196,000 more precise location points
in the Grab application.
The number of businesses using Grab for
Business doubled in 2019, and the most popular
destinations for rides were Myanmar Plaza,
Junction City, and Yangon Airport.
Grab will expand its services to other key cities
MIC Permitted Projects Upcoming Events
across the country this year, Toh said. GrabFood
will be launched for local restaurants and
transportation partners in Mandalay this year.
“Although food delivery is increasing locally, it
still lags behind other countries. We have many
opportunities,” said U Myat Kaung Min, head of
GrabFood Myanmar.
Grab For Good will be launched in Myanmar
soon.
In 2018, Grab launched its Grab Thone Bane
(three-wheeler) service in Bagan and Mandalay
city, and Grab TaxiPlus service.
More than 166 million people in 339 cities in
Myanmar, Vietnam, the Philippines, Thailand,
Cambodia, Malaysia, Singapore and Indonesia
have downloaded the Grab app on their mobile
phones. – Translated
Source: Myanmar Times
https://www.mmtimes.com/news/myanmar-
aviation-sector-expected-become-profitable-
more-pain-ahead-first.html
23 February 2020
11
 Infrastructure
NEP Phase 1 to be finished at the end of Sept
11 Feb 2020
Phase 1 of National Electrification Project (NEP)
will be finalized at the end of September this year
to provide electricity to 626,757 family
households from 5,080 villages, said Union
Minister Win Khaing for Electricity and Energy.
The government received a US$310 million loan
from the World Bank (WB) to implement the
NEP.
Myanmar has 51 state owned and private owned
power stations across the country and they can
produce over 5,600 megawatts of electricity. The
ministry is implementing three power projects in
Kanpauk, Ahlone and Mielaunggaint, according
to the ministry.
Over 4.9 million out of 10.8 million family
households have gained access to national grip
and the ministry is targeting to provide electricity
to 50 per cent of entire family households in the
country at the end of 2019, said Dr Tun Naing,
Deputy Minister for Electricity and Energy.
The electricity production sector is needed to
expand to meet the demand and the ministry is
implementing 1,230 megawatts electricity project
in Kanpauk, Taninthayi Region, 377 megawatts
electricity project in Ahlone, Yangon Region and
1,390 megawatts electricity project in
Mielaunggaint, Ayeyawady Region. A total of 250
PwC PwC Myanmar Weekly Business Intelligence
Energy
Financial and Business
megawatts of electricity will be generated in
2021-22 FY and 3,000 megawatts of electricity in
2025-26 FY.
About 47.25 per cent of family households had
gained access to national grid in 2018-19 FY and
it will be reached to 55.72 per cent in 2019-20
FY, according to figures of 2019-20 FY.
Myanmar invested Ks2.327 trillion within about
three-year time and generated over 900
megawatts of electricity more. It will be over
1,000 megawatts in mid-2020.
“At the present, Myanmar is using from 15 to 19
per cent of electricity more annually and the
ministry is implementing to meet the electricity
demand. The government allocated funds for the
electricity sector as its priority. A total of 904
megawatts of electricity are generated from three
hydropower stations, six thermal energy power
stations and one solar power plant between April
2016 and December 2019,” announced the
Ministry of Information quoting President Win
Myint in a ceremony to mark the achievement of
50 percent nationwide electrification.
Source: Eleven Myanmar
https://elevenmyanmar.com/news/nep-phase-1-
to-be-finished-at-the-end-of-sept
Infrastructure Policy and Regulation Tender Opportunities
Chinese company granted licence to explore Block D
15 Feb 2020
PHNOM PENH (The Phnom Penh Post/ANN) - A
three-year exploration licence in the Gulf of
Thailand’s Block D, off the coast of Cambodia,
has been granted to a Chinese-owned
Cambodian Resources Energy Development Co
Ltd.
Chinese-owned Cambodian Resources Energy
Development Co Ltd has been granted a three-
year exploration licence in the Gulf of Thailand’s
Block D, off the coast of Cambodia, a senior
official at the General Department of Petroleum
told The Post on Thursday.
General Department of Petroleum director-
general Cheap Sour said the Ministry of Mines
and Energy and Cambodian Resources Energy
Development signed an agreement in December
that gave the company the right to explore the
area.
The company is scheduled to begin exploration
of Block D this year.
“Right now, the company is studying all the
paperwork. Next, they will begin exploring the oil
field.
“If they see that the bloc has potential, they will
begin preparations to extract oil. But we are in
the beginning stages, so it will take a long time
before any oil is extracted,” he said.
MIC Permitted Projects Upcoming Events
He noted that the ministry is prioritising attracting
more investors to the mines and energy sector in
the Kingdom.
Block D is a 5,500sq km zone in the Gulf of
Thailand that was previously licensed to local
firm CPHL (Cambodia) Co Ltd.
The government revoked that exploration licence
in May 2016 after the company failed to meet the
terms of the agreement.
According to Sour, Cambodia has divided
regions for kerosene exploration into six offshore
and 19 onshore blocks.
Sour said the ministry is currently negotiating an
agreement with Canadian firm EnerCam Co to
explore Block VIII.
“I expect that we will be reaching an agreement
on oil exploration with the company soon,” he
said. Singapore-based KrisEnergy is currently
developing the Apsara oilfield in Cambodia’s
offshore Block A. The company aims to extract
the first drop of oil later this year. The field is
expected to reach a peak rate of 7,500 barrels of
oil per day, according to KrisEnergy.
Source: Eleven Myanmar
https://elevenmyanmar.com/news/chinese-
company-granted-licence-to-explore-block-d
23 February 2020
12
 Infrastructure
China keen to invest in Dawei SEZ
20 Feb 2020
A state-owned Chinese firm has expressed
interest to invest in the planned Dawei Special
Economic Zone (SEZ) in Tanintharyi Region, U
Myint San, vice chair of Dawei SEZ Management
Committee, told The Myanmar Times.
The Myanmar government has yet to respond to
the Chinese, given that talks to develop the SEZ
with Italian-Thai Development Company Ltd
(ITD) as well as the Thai and Japanese
governments are at advanced stages. However,
analysts aren’t ruling out the possibility.
“Dawei SEZ has taken a long time to take shape
and isn’t going as planned. As we don’t have the
funds to implement it, if the current investors
cannot develop the project effectively, then
Chinese companies are our only options,” said U
Zaw Win Pe, a local analyst and former
economic adviser to parliament.
“We’ll complete negotiations with the ITD first. If
we cannot agree to the terms of the project, we
can cancel the contract when it expires. I think
the Chinese have the capacity to develop this
project, but we’ll have to wait and see if ITD
would be able to do it within the specified period,”
U Zaw Win Pe added.
The Chinese are expected to reap strategic
benefits if they win Dawei SEZ. “China is already
PwC PwC Myanmar Weekly Business Intelligence
Real Estate
Financial and Business
developing the Kyauk Phyu SEZ in Rakhine
State. China is building a bullet train route from
Kunming, China to Bangkok in Thailand. If they
can connect that route to Dawei SEZ, it will be a
great achievement for China. If China wins
[Dawei SEZ], they will connect this route,” U
Myint San said.
Meanwhile, the Myanmar government will
increase pressure on ITD as well as the Japan
and Thai governments to kick start development
at the Dawei SEZ. After years of delays and
negotiations, the Dawei SEZ Management
Committee last month said changes have been
made to the contractual arrangements with ITD
for the development of initial industrial estate.
Under the amendments, ITD and other investors
must compensate and resettle villagers affected
by industrial zone project. It must also adhere to
international standards on the environment.
Source: Myanmar Times
https://www.mmtimes.com/news/china-keen-
invest-dawei-sez.html
Infrastructure Policy and Regulation Tender Opportunities
Grab says it pumped $100M into Myanmar in
four years
12 Feb 2020
Ride-sharing company Grab has invested over
US$100 million (K143.5 billion) in Myanmar in
the past four years to strengthen its position on
the local taxi market, a senior company official
said Tuesday.
Cindy Toh, country manager for Grab, said the
company will continue investing to further
improve the quality of its service in Myanmar.
“Grab will emphasise service quality and safety,
not only technology,” she told a briefing. “We will
continue investing in expansion and partnerships
to better the platform and expand the
ecosystem.”
Grab launched its service in Myanmar in July
2017, and has since introduced Grab Taxi Call
service, Premium Rentals (Beat), and Grab
Food.
The company’s taxi service is popular and
experiencing an increase of 10 percent in daily
rides in 2019 from the previous year, and adding
more than 196,000 more precise location points
in the Grab application.
The number of businesses using Grab for
Business doubled in 2019, and the most popular
destinations for rides were Myanmar Plaza,
Junction City, and Yangon Airport.
Grab will expand its services to other key cities
MIC Permitted Projects Upcoming Events
across the country this year, Toh said. GrabFood
will be launched for local restaurants and
transportation partners in Mandalay this year.
“Although food delivery is increasing locally, it
still lags behind other countries. We have many
opportunities,” said U Myat Kaung Min, head of
GrabFood Myanmar.
Grab For Good will be launched in Myanmar
soon.
In 2018, Grab launched its Grab Thone Bane
(three-wheeler) service in Bagan and Mandalay
city, and Grab TaxiPlus service.
More than 166 million people in 339 cities in
Myanmar, Vietnam, the Philippines, Thailand,
Cambodia, Malaysia, Singapore and Indonesia
have downloaded the Grab app on their mobile
phones. – Translated
Source: Myanmar Times
https://www.mmtimes.com/news/myanmar-
aviation-sector-expected-become-profitable-
more-pain-ahead-first.html
23 February 2020
13
 Infrastructure
Industrial zone in Kyaukphyu SEZ to be built at $30m
20 Feb 2020
An industrial zone project within the Kyaukphyu
Special Economic Zone (SEZ) in Rakhine State
will be developed for US$30 billion, deputy
commerce minister U Aung Htoo told Pyithu
Hluttaw this week.
CITIC Consortium from China owns 51 percent
of the industrial zone while the Myanmar
government owns 49pc, he said.
The industrial zone will be developed on 2400
acres of land and a high-end housing project will
also be constructed across 1235 acres.
The Kyaukphyu SEZ, which is expected to
consist of the industrial zone and a deep sea
port, will be developed across 4300 acres of land
in total.
Development will be led by China's CITIC
Consortium and a total of 42 private Myanmar
companies under Myanmar Kyaukphyu Special
Economic Zone Holding Public Co, said U Aung
Htoo.
Myanmar will hold a 30pc stake in the SEZ,
which will be developed in phases, while CITIC
Consortium will invest 70pc.
U Aung Htoo added that negotiations are now
being held to start implementation of the first
phase at $1.3 billion. This follows a concession
agreement and shareholders’ agreement for the
PwC PwC Myanmar Weekly Business Intelligence
Real Estate
Financial and Business
deep-sea port between the two countries during
President Xi Jinping’s visit to Nay Pyi Taw last
month.
Tenders will be called to carry out social and
environmental assessments and geological
surveys as part of the development process.
Development of the Kyaukphyu port will enhance
China’s presence in the Indian Ocean, allowing
its oil imports to bypass the Strait of Malacca.
The SEZ is an important asset in the China-
Myanmar Economic Corridor, which is part of
China’s Belt and Road Initiative, which spans
several countries in Asia. It will also be an
important connecting point for the high-speed
Kunming-Muse-Mandalay-Kyaukphyu railway
project. – Translated
Source: Myanmar Times
https://www.mmtimes.com/news/industrial-zone-
kyaukphyu-sez-be-built-30m.html
Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Taxpayers bear the costs of loss-making steel factory in
Mandalay
20 Feb 2020
Nearly K500 million in interest is paid daily to loans,” said Nwartogyi township’s No.1
China for a loan taken to run a loss-making state- Constituency Hluttaw MP Daw Nyein That Nwal.
owned steel factory in Myingyan township, The factory was only able to produce steel billets
Mandalay, said U Zarni Aung, regional minister and steel slabs since becoming operational in
for Electricity, Energy and Construction. fiscal 2009-10 has only distributed the products
He said the No(1) Steel Mill Project (Myingyan), to MEC. A supporting air separation plant was
was first opened in fiscal 2004-05 by the also damaged and not repaired, leading to the
Myanmar Economic Corporation (MEC) with a project and production works being suspended
€1.1 billion loan from the China Development by the Ministry of Planning and Finance since
Bank. 2017. –
“Currently, the total debt including interest is
more than €1.6 billion. The repaid amount up to
September 2018 was €136.7 million . The
amount including interest that needs to be paid
off daily in fiscal 2019-20 is around K500 million,”
said U Zarni Aung at the Mandalay Region
Hluttaw on February 18.
The mill is directly managed by the Ministry of
Planning and Finance and Industry and is not
under the management of regional government,
said U Zarni Aung.
“This project has really high interest rate and was
done by MEC from 2010 to 2012. It was
transferred to No.1 Industry in 2012 and as it was
transferred to the current government after the Source: Myanmar Times
project had been implemented with loans, the https://www.mmtimes.com/news/taxpayers-bear-
public is bearing the burden of repaying these costs-loss-making-steel-factory-mandalay.html
23 February 2020
14
 Infrastructure
Wild waters: Kachin
23 Feb 2020
The ninth instalment in our travel series about
wild swimming spots takes us to Myanmar’s
northernmost state, a land of ethnic diversity,
impenetrable jungle and… tubing.
Kachin State is famous for Myitsone and manau
festivals, but also contains vast expanses of
impenetrable jungle wilderness, a large variety of
ethnic groups and even the country’s very own
section of the Himalayas. So, I hear you ask?
Okay – it also possesses a range of fairly special
water-centric excursions, so next time you make
it that far north do yourself a favour and add at
least a couple of them to your itinerary.
INDAWGYI LAKE
You don’t have to be a devout wild swimmer to
enjoy Myanmar’s largest natural lake – it’s an
essential Myanmar travel destination in its own
right. You can rent kayaks and bamboo bicycles,
visit hot springs, and sign up for a range of
different boating tours. While all of that comes
heartily recommended, nothing beats heading for
the middle of the lake at sunset, and diving
headfirst into those deep, deep waters.
Myitsone
About 90 minutes north of Mandalay, two rivers
that wind down from the Himalayas – the Mali
Kha and the N’Mai Kha – converge to form one
PwC PwC Myanmar Weekly Business Intelligence
Waste and Water
Financial and Business
giant super river, the Ayeyarwady. The current is
pretty brutal away from the shallows so I can’t
really recommend swimming here. What you can
do though is rent a boat (K20,000) for a 15-
minute spin around the river(s). That, and renting
out a traditional Kachin outfit, and posing like a
total dork in front of the confluence.
War Yone Tor Resort
With bamboo huts lining a babbling stream and
mountains looming in the background, this river
resort an hour north of Myitkyina is a great spot
to grab some late lunch of barbecued fish and
sneak in a cheeky paddle before heading back
into Myitkyina.
Tubing at Washawng Resort
Easily one of my favourite river swims in the
country, Washawng has a lot going for it: crystal
clear waters, a well-maintained site (there’s
barely any trash in the main resort), and shaded
bamboo huts that are built into the river itself.
Best of all, though, is the tubing. Rent a tube for
K1,000 and march yourself past the bridge to a
bend in the river.
Source: Frontier Myanmar
https://www.frontiermyanmar.net/en/wild-waters-
kachin
Infrastructure Policy and Regulation Tender Opportunities
Grab says it pumped $100M into Myanmar in
four years
12 Feb 2020
Ride-sharing company Grab has invested over
US$100 million (K143.5 billion) in Myanmar in
the past four years to strengthen its position on
the local taxi market, a senior company official
said Tuesday.
Cindy Toh, country manager for Grab, said the
company will continue investing to further
improve the quality of its service in Myanmar.
“Grab will emphasise service quality and safety,
not only technology,” she told a briefing. “We will
continue investing in expansion and partnerships
to better the platform and expand the
ecosystem.”
Grab launched its service in Myanmar in July
2017, and has since introduced Grab Taxi Call
service, Premium Rentals (Beat), and Grab
Food.
The company’s taxi service is popular and
experiencing an increase of 10 percent in daily
rides in 2019 from the previous year, and adding
more than 196,000 more precise location points
in the Grab application.
The number of businesses using Grab for
Business doubled in 2019, and the most popular
destinations for rides were Myanmar Plaza,
Junction City, and Yangon Airport.
Grab will expand its services to other key cities
MIC Permitted Projects Upcoming Events
across the country this year, Toh said. GrabFood
will be launched for local restaurants and
transportation partners in Mandalay this year.
“Although food delivery is increasing locally, it
still lags behind other countries. We have many
opportunities,” said U Myat Kaung Min, head of
GrabFood Myanmar.
Grab For Good will be launched in Myanmar
soon.
In 2018, Grab launched its Grab Thone Bane
(three-wheeler) service in Bagan and Mandalay
city, and Grab TaxiPlus service.
More than 166 million people in 339 cities in
Myanmar, Vietnam, the Philippines, Thailand,
Cambodia, Malaysia, Singapore and Indonesia
have downloaded the Grab app on their mobile
phones. – Translated
Source: Myanmar Times
https://www.mmtimes.com/news/myanmar-
aviation-sector-expected-become-profitable-
more-pain-ahead-first.html
23 February 2020
15
 Infrastructure
Delivery app starts service in Yangon
18 Feb 2020
Foodpanda, a mobile food delivery service, will
now connect users to over 1,000 restaurants in
Yangon.
“Foodpanda is a platform which is easy to use. It
enables users to order foods easily, and get it
delivered to their door. Myanmar will be a vital
market for the company,” said foodpanda’s
regional CEO for the Asia-Pacific region, Mr
Jakob Sebastian Angele.
The food delivery service is already available in
12 countries throughout the world, and will
connect users in Myanmar with popular
restaurants throughout the city.
The service includes access to international fast
food brands like KFC, Pizza Hut, Marry Brown,
The Manhattan Fish Market; cafes like Gong
Cha, Amazon, Cheese O’Tea and Tom & Toms;
as well as local favourites like YKKO, Tin Myint
Myanmar, Yangon Tea House, Shan Yoe Yar,
The Pansodan and Mr. Chef.
The foodpanda app allows customers to order
food for any amount, delivered to the house or
office free of charge.
People can order food from nearby restaurants,
notifying the outlet of their location via
foodpanda’s website and the iOS or Andriod
application.
PwC PwC Myanmar Weekly Business Intelligence
Other Infra
Financial and Business
“We have worked to change people’s view and
feeling about food delivery service,” said
foodpanda Myanmar’s managing director Ko
Zayar Min.
From 8:00 am to 10:00pm, customers can order
whatever food they fancy from foodpanda. –
Translated
Source: Myanmar Times
https://www.mmtimes.com/news/delivery-app-
starts-service-yangon.html
Infrastructure Policy and Regulation Tender Opportunities
Grab says it pumped $100M into Myanmar in
four years
12 Feb 2020
Ride-sharing company Grab has invested over
US$100 million (K143.5 billion) in Myanmar in
the past four years to strengthen its position on
the local taxi market, a senior company official
said Tuesday.
Cindy Toh, country manager for Grab, said the
company will continue investing to further
improve the quality of its service in Myanmar.
“Grab will emphasise service quality and safety,
not only technology,” she told a briefing. “We will
continue investing in expansion and partnerships
to better the platform and expand the
ecosystem.”
Grab launched its service in Myanmar in July
2017, and has since introduced Grab Taxi Call
service, Premium Rentals (Beat), and Grab
Food.
The company’s taxi service is popular and
experiencing an increase of 10 percent in daily
rides in 2019 from the previous year, and adding
more than 196,000 more precise location points
in the Grab application.
The number of businesses using Grab for
Business doubled in 2019, and the most popular
destinations for rides were Myanmar Plaza,
Junction City, and Yangon Airport.
Grab will expand its services to other key cities
MIC Permitted Projects Upcoming Events
across the country this year, Toh said. GrabFood
will be launched for local restaurants and
transportation partners in Mandalay this year.
“Although food delivery is increasing locally, it
still lags behind other countries. We have many
opportunities,” said U Myat Kaung Min, head of
GrabFood Myanmar.
Grab For Good will be launched in Myanmar
soon.
In 2018, Grab launched its Grab Thone Bane
(three-wheeler) service in Bagan and Mandalay
city, and Grab TaxiPlus service.
More than 166 million people in 339 cities in
Myanmar, Vietnam, the Philippines, Thailand,
Cambodia, Malaysia, Singapore and Indonesia
have downloaded the Grab app on their mobile
phones. – Translated
Source: Myanmar Times
https://www.mmtimes.com/news/myanmar-
aviation-sector-expected-become-profitable-
more-pain-ahead-first.html
23 February 2020
16
 Infrastructure
Three foreign companies withdraw investments from
Thilawa SEZ
18 Feb 2020
Three foreign companies have withdrawn their
investment plans from the Thilawa Special
Economic Zone (SEZ), according to U Aung
Htoo, deputy commerce minister.
The minister was responding to questions on
developments at the SEZ from U Khin Cho, a
representative of Pyithu Hluttaw, at a parliament
session on February 14.
As at December 2019, the government has
permitted 115 companies from 19 countries to
operate in Thilawa SEZ. However, three have
withdrawn their investment plans, resulting in 112
companies having invested a total of US$1.9
billion in Thilawa so far, U Aung Htoo said.
The three companies which withdrew include two
Japan/Myanmar joint ventures in chemical
products manufacturing and shoe production.
The third company is a Singapore data center,
according to U Shwe Hein, Secretary of Thilawa
SEZ Management Committee.
He said that the two joint ventures were not able
to raise sufficient capital to carry out their
investments in Thilawa, resulting in them pulling
out of the country. Meanwhile, the Singapore
company did not receive permission from the
authorities to operate, as foreign wholly-owned
data centers are not allowed due to national
PwC PwC Myanmar Weekly Business Intelligence
Other Infra
Financial and Business
security reasons, U Shwe Hein said.
He added that aside from these three
companies, it’s business as usual at Thilawa
SEZ, with a steady momentum of investor
enquiries coming in.
Thilawa SEZ covers some 2500 hectares and is
divided into two zones. Over 100 companies
have invested in it so far, with more than half of
them being from Japan. Companies in the SEZ
include those involved in construction,
packaging, garments, food, agricultural products,
transportation, automobile and accessory
production, pharmaceuticals and electrical
products.
Source: Myanmar Times
https://www.mmtimes.com/news/three-foreign-
companies-withdraw-investments-thilawa-
sez.html
Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
DaNa Facility Unveils Report on Kachin State’s SME
Ecosystem
18 Feb 2020
UK Aid-funded DaNa Facility and Cordaid Bhamo Young Entrepreneurs’ Association.
recently unveiled their study, “The Ecosystem for Understanding the SME landscape in Kachin
Small and Medium-Sized Enterprises in Kachin State has the potential to create economic
State” at an event attended by Kachin State opportunities for people from poor communities
government officials, donors, humanitarian and and for groups that commonly face social and
development practitioners, local enterprises and economic disadvantages, such as women,
other key stakeholders. people with disabilities and people living in
“Understanding the private sector landscape in conflict-affected regions.
Kachin and the challenges SMEs face is The study also looked into SMEs’ accessibility to
essential for creating new opportunities for financial services well as availability of raw
inclusive growth – growth that creates economic materials and connection to local and foreign
opportunities for poor communities and internally markets.
displaced persons,” said Thomas Coward, team
leader of DFID Myanmar’s Inclusive and
Livelihoods team.
The study aims to provide donors and the
development community with a better
understanding of the challenges faced by small
and medium-sized enterprises across Kachin,
with a particular emphasis on enterprises run by
internally displaced persons.
“We are pleased to see this report includes the
SME landscape beyond Myitkyina, and I see this
as a very inclusive and comprehensive report
that shows a possible roadmap to support SMEs Source: Myanmar Business Today
in Kachin State, particularly in the agriculture https://mmbiztoday.com/dana-facility-unveils-
sector,” said Kyaw Min Oo, president of the report-on-kachin-states-sme-ecosystem/
23 February 2020
17
Policy and Regulation

23 February 2020
18
 Policy and Regulation
e-Government system crucial for country’s
development: State Counsellor
20 Feb 2020
e-Government is a crucial element in linking the
government with stakeholders to better drive
economic development and poverty alleviation in
Myanmar, said State Counsellor Daw Aung San
Suu Kyi.
“I want Myanmar people to understand and apply
these technologies. Technologies should be
modified into Myanmar versions gradually so that
even ordinary Myanmar people can become
accustomed to modern technologies,” she said in
her opening remark as Patron of the e-
Government Steering Committee, at the 4th e-
Government Conference & ICT Exhibition held at
the MICC-2 in Nay Pyi Taw, on Tuesday.
Despite Myanmar’s e-Government index jumping
12 places from 169th place in 2016 to 157th in
2018 out of 193 countries worldwide, it still ranks
under the average of ASEAN member nations,
she said.
Last October, Myanmar government made a
nationwide effort to migrate from using Zawgyi
font to the international-standard Unicode font.
“Although Myanmar has experienced a certain
degree of increases in some sectors such as
education, the country has not overtaken other
ASEAN countries. Instead, a slight decrease has
been noticed. It showed that our neighbouring
PwC PwC Myanmar Weekly Business Intelligence
Financial and Business
countries have moving forward at a faster pace,
and that we need faster development. It is
expected the e-Government could help in this
movement,” she said.
The United Nations has established a benchmark
to measure the development of a country in
regard to e-Government system, based on the
three indicators – online services,
telecommunications, infrastructural development
and human resource development.
“The implementation of e-Government is
intended for many benefits, including easy and
smooth activities at government agencies,
effective functions, making right decisions, better
services, appropriate responses to fulfill public
needs and socioeconomic development of the
people,” said Daw Aung San Suu Kyi.
Source: Myanmar Times
https://www.mmtimes.com/news/e-government-
system-crucial-countrys-development-state-
counsellor.html
Infrastructure Policy and Regulation Tender Opportunities
Myanmar aviation sector expected to become
profitable, but more pain ahead first
27 Jan 2020
Myanmar’s aviation industry is betting on a more
profitable future with the number of airlines now
reduced to half compared to 2017 and demand
for domestic air travel expected to catch up with
supply. However, they will have to swallow more
losses in the short term before things get better.
There are currently five airlines in Myanmar,
down from ten three years ago. But even though
there are fewer players now in the market, the
volume of passengers flying domestic remains
below three million, according to government
data.
At those levels, demand is not sufficient to cover
the industry’s losses, U Kyaw Nyein, CEO of
Golden Myanmar Airlines (GMA), told The
Myanmar Times in a recent interview.
But profitability is possible in the years ahead,
making it a good time for the remaining airlines to
accelerate their plans for expansion to capitalise
on future demand, according to a 2019 report by
the Centre for Asia Pacific Aviation.
Last year, GMA took delivery of a new aircraft,
taking its current fleet of ATR-72s to three. “With
the additional seats, we can now fly daily
compared to alternate days before. We will also
extend our destinations to include more flights to
Dawei and Kaw Thaung, which could be potential
MIC Permitted Projects Upcoming Events
tourist attractions in the future,” U Kyaw Nyein.
Air KBZ has also been expanding. Last year, it
upgraded its fleet of planes and announced new
destinations to Dawei , Kaw Thaung , Myeik,
Sittwe, Kyaingtong, Hkamti and Loikaw. its sister
airline, Myanmar Airways International, added a
new Airbus A319 to its fleet, expanding its
capacity by 144 passengers.
Tanes Kumar, commercial director for Air KBZ,
said even though the new routes are not yet
profitable, the main aim of adding new
destinations is to expand the airline’s network
and connectivity. “This gives passengers more
options and allows employees to learn new skills
for more expansion in the future,” he said.
Source: Myanmar Times
https://www.mmtimes.com/news/myanma
r-aviation-sector-expected-become-
profitable-more-pain-ahead-first.html
23 February 2020
19
 Policy and Regulation
Myanmar Credit Bureau to commence operations in
April
20 Feb 2020
Myanmar will start the process of disbursing
loans supported with credit assessments from
the Myanmar Credit Bureau by April, Daw Than
Than Swe, director general of the Financial
Institutions Supervision Department under the
Central Bank of Myanmar, said in Yangon on
February 18. However, it will still take up to one
year to collect sufficient and meaningful credit
data on local businesses to be provided to the
banks, said U Zaw Lin Aung, chair of Myanmar
Credit Bureau.
The credit bureau is the first in Myanmar. Data
from the credit bureau will enable banks to make
better loan decisions and strengthen risk
management. Meanwhile, individuals or
businesses with good credit management will be
able to receive loans more quickly, he said.
MB Investment, which consists of a consortium
of local banks, owns 60 percent of the credit
bureau while Singapore’s Asia Credit Bureau
Holding Company holds the remaining 40pc.
Asia Credit Bureau Holding Company cooperates
with banking organisations and credit bureaus in
Singapore, Malaysia, Cambodia and Indonesia.
The Myanmar Credit Bureau signed an
agreement with US-based Equifax New Zealand
Services and Solutions Ltd for software
PwC PwC Myanmar Weekly Business Intelligence
installation, consultancy and
December 10, 2018. -
Source: Myanmar Times
https://www.mmtimes.com/news/credit-bureau-
commence-operations-april.html
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Only 5% of land purchase applications in Yangon valid:
officials
20 Feb 2020
support on Only 600 out of the 12,000 applications to submit Yangon mayor U Maung Maung Soe told the
a Request for Proposal for land sold by the media that land sold by the government is
Yangon regional government are complete and guaranteed and will be made available only to
valid, a Yangon city official said. those who intend to conduct business.
“Most of the applications are not complete or fail
to meet requirements,” said U Maung Maung Oo,
a former government staff.
The Yangon government has put several plots of
land up for sale in Hlaing Thar Yar, Shwe Pyi
Thar and Dagon townships as well in Myaung
Dagar Industrial Zone in Hmawbi township. The
plots of land will be sold at a price fixed by a land
price valuation board in Yangon.
Land buyers must start a business on the land
within six months of purchase. The land cannot
be sold in the first three years.
Application forms were made available to the
public at K10,000 each on October 7, 2019.
Over 15,000 application forms were issued. The
public has until November 8 to submit their
forms, after which the buying process will
commence.
“We have selected only complete applications
and those who meet the standards and
requirements to purchase the land. Most of the Source: Myanmar Times
applications have misleading information,” said U https://www.mmtimes.com/news/only-5-land-
Maung Maung Oo. purchase-applications-yangon-valid-officials.html
23 February 2020
20
 Policy and Regulation
Yangon MPs Draft Bill to Rein In Mismanagement of
Public Funds
17 Feb 2020
YANGON – The Yangon regional parliament is
drafting a law to increase transparency in the use
of public funds and to reduce waste through
mismanagement, according to a regional
lawmaker.
The chairwoman of the regional parliamentary
committee on finance, planning and economy,
Daw Sandar Min, told The Irrawaddy the regional
government refused to pay tax on its company
running the Yangon Bus Service, the public
transport system launched by Yangon Region
Chief Minister U Phyo Min Thein in 2017.
She said: “When it was asked to pay tax, it said
[the company] was owned by the regional
government. When the [Yangon] auditor-
general’s office said it would then audit it, the
[regional government] said it was a private
company. The bill is intended to control such
mismanagement.
“Rather than taking control, it will make sure
there is less waste in businesses in which the
government invests public funds,” she added.
The committee has drafted the Region Funds
and Investment Law, which is now being
discussed by Yangon’s bill committee and
attorney-general’s office. Then input would be
sought from business owners, she said.
PwC PwC Myanmar Weekly Business Intelligence
Financial and Business
The law is also aimed at promoting good
management and preventing corruption in
business deals and the leasing of government
land and property.
The bill would require companies established by
the regional government with public funds to be
audited by the auditor-general’s office and the
government to make regular reports to the
Yangon parliament about its business activities.
The finance, planning and economy committee
plans to submit the bill in June.
Daw Nyo Nyo Thin, founder of Yangon Watch,
an independent watchdog monitoring the Yangon
government’s performance, welcomed the move,
saying it would help protect the public interest
and establish a cleaner government.
“I heard that the law was drafted in response to
the Yangon regional government’s violation of
financial regulations over the past few years,”
she said.
Source: Myanmar Times
https://www.irrawaddy.com/news/burma/yangon-
mps-draft-bill-rein-mismanagement-public-
funds.html
Infrastructure Policy and Regulation Tender Opportunities
Myanmar Reportedly Set to Be Placed on Global
Money-Laundering Watchlist
20 Feb 2020
JAKARTA—Myanmar is set to be placed on a
watchlist by a global finance watchdog this week,
amid concerns of money laundering by
transnational drug traffickers and weak regulation
of its financial system, two sources familiar with
deliberations said.
A decision to put Myanmar on the “gray list” by
the Paris-based Financial Action Task Force
(FATF) would mean the inter-governmental body
had found “strategic deficiencies” in the country’s
ability to counter money laundering and terrorism
financing.
While being on the list does not carry any
sanctions, it could curtail the growth of financial,
investment and trade flows to and from the
Southeast Asian nation, a high-level official,
speaking on condition of anonymity, told Reuters.
Kyaw Win Thein, the head of Myanmar’s
Financial Intelligence Unit who is attending the
FATF meeting in Paris this week, told Reuters
that Myanmar “is not on the grey list so far”. Its
fate will be decided at a plenary meeting on
Thursday, he said.
The FATF typically announces its decisions on
Friday at the end of its Paris plenary meetings.
Kyaw added that Myanmar’s government had
developed a strategic implementation plan to
MIC Permitted Projects Upcoming Events
improve its ability to counter money laundering.
He declined to elaborate but Myanmar recently
introduced new requirements for companies to
disclose beneficial ownership, and for banks to
undertake better customer due diligence. It has
also passed laws legalizing its casinos after
concerns that unregulated gaming
establishments were being exploited by
transnational crime groups.
Two sources with knowledge of the FATF’s
proceedings and its investigation into Myanmar
said the watchdog found that implementation of
the nation’s anti-money laundering action plan
was far from complete and it was on track to be
put on the grey list at the meetings this week.
Myanmar lies at the heart of the “Golden
Triangle” region, the epicenter of illicit drug
production and trafficking in the Asia-Pacific. It
also has “significant” problems with illegal jade
mining, arms trafficking and logging, among
other offenses, an FATF report in 2018 found.
Source: Irrawaddy
https://www.irrawaddy.com/news/burma/myanma
r-reportedly-set-placed-global-money-laundering-
watchlist.html
23 February 2020
21
Tender Opportunities

23 February 2020
22
 Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events

Tender Opportunities in Myanmar

No Organisation Title Publication Date Closing Date

1 Asian Development Bank TA-9723 REG: Support for Human and Social Development in Southeast Asia - Preparing the REG: Healthy 30 Jan 2020 28 Feb 2020
Borders Special Economic Zones (Consulting Firm) (52335-001)

2 Asian Development LOAN-3724 MYA: Climate-Friendly Agribusiness Value Chains Sector Project - CS-09 Capacity Building and 19 Feb 2020 20 Mar 2020
Bank Climate Smart Agriculture Training Consultants (48409-003)

3 Ministry of Electricity and National Electrification Project (NEP), Funding: Italian Soft Loan – Supply, Installation and Maintenance of Solar 11 Feb 2020 26 Mar 2020
Energy PV Systems for Households and Public Facilities

4 Ministry of Electricity and National Electrification Project (NEP) – Installation of Distribution Lines and Transformers for Shan (South), Shan 13 Feb 2020 16 Mar 2020
Energy (North), Shan (East) & Bago (East)

5 Ministry of Agriculture, Consulting Services for Capacity Strengthening for Integrated Water Resources Management (IWRM) 20 Feb 2020 17 Mar 2020
Livestock and Irrigation

Source: World Bank Group, Asian Development Bank, Consult Myanmar

23 February 2020
PwC PwC Myanmar Weekly Business Intelligence 23
MIC Permitted Projects

23 February 2020
24
 Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events

MIC Permitted Projects – Meeting (3/2020)

No Name of Company Type of Investment Form of Investment

1 Production, processing and marketing of all kinds of poultry feeds, animal

New Hope (Mandalay) Co., Ltd Wholly foreign owned
feeds, shrimp feeds and fish feeds
2
SMM Shwe Myanmar Beverages Co., Ltd Production and sales of food grade ethanol and Co2 Gas Wholly Myanmar owned

3
Adonia Footwear Co., Ltd (HK 100%) Manufacturing of all kinds of sport shoes on CMP basis Wholly Foreign owned

4
Glamoroso Apparel (Myanmar) Co., Ltd Manufacturing of garment on CMP basis Wholly Foreign owned

5
Myanmar SWM Motor Co., Ltd Assembling, manufacturing, sales of motor vehicles and after sale services Wholly Myanmar owned

6
Allin Pwint Construction Co., Ltd Hotel service Myanmar Investment

7
Vivekananda international Co., Ltd (Malaysia) Higher education services Joint Venture

Source: DICA
23 February 2020
PwC PwC Myanmar Weekly Business Intelligence 25
Upcoming Events

23 February 2020
26
 Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events

Upcoming Events

No Date Location Name of Event Sector Focus Points

1 “Following the success of 2019, 2020 The 12th International Conference

on Future Computer and Communication (ICFCC 2020) is to be held
conjunction with the 18th ICCA 2020 once again in Yangon (Rangoon),
Myanmar (Burma) during February 26-28, 2020, which is organized by
International Conference on Future Computer
26-28 Feb 2020 Yangon IT and Technology SCIence and Engineering Institute, USA, co-organized by University of
and Communication
Computer Studies, Yangon under Ministry of Education, Yangon
(Rangoon), Myanmar (Burma), and technically supported by Nagoya
Institute of Technology, Japan and OKAYAMA University, Japan.”

2 “International Conference on Computer Applications will bring together

leading engineers and scientists in computer and information technology
International Conference on Computer from around the world. The conference offers an excellent opportunity to
27-28 Feb 2020 Yangon IT and Technology
Application learn and share the latest developments to interact with leading experts in
the field.”

Source: 10times.com, go-Myanmar.com

23 February 2020
PwC PwC Myanmar Weekly Business Intelligence 27
 Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events

Upcoming Events (cont’d)

No Date Location Name of Event Sector Focus Points

3 “International Conference on Management, Economics & Social Science

will provide an excellent international forum for sharing knowledge and a
result in Management, Economics & Social Science. The aim of the
International Conference on Management,
28-29 Feb 2020 Yangon Education & Training Conference is to provide a platform to the researchers and practitioners
Economic & Social Science (ICMESS)
from both academia as well as industry to meet the share cutting-edge
development in the field.”

4 04-05 Apr 2020
Yangon Global Summit of Sustainable Development Business Services “Global Summit of Sustainable Development will pursue the vision of the
global Rise movement to promote the re-emergence of the Tamils as
respectable global people by cultivating the culture of collaboration
among multi-stakeholders towards achieving mutual and inclusive
growth.”

5 27-28 Apr 2020 Yangon Myanmar Insurance Summit Banking & Finance “The theme of the conference will be Ushering In the New Growth Wave
to give a quick synoptic overview of the potential in Myanmar while
highlighting the power of strategic alliance and partnership to serve the
needs of the growing market for protection.”

Source: 10times.com, go-Myanmar.com

23 February 2020
PwC PwC Myanmar Weekly Business Intelligence 28
 PwC Myanmar
PwC Myanmar helps organisations and individuals create the value they’re looking for. Our firm comprises of highly qualified local professionals with years of international experience, supported by
domain experts from PwC Singapore; a combination that brings you in-depth, on-the-ground knowledge base while tapping on PwC’s global reach and expertise. We are committed to helping organisations
adapt their commercial interests successfully, transform and develop their operations, solve their business issues, and identify as well as maximise the opportunities they seek.
With the opening of our firm in Yangon on 6 November 2012, PwC Myanmar is a member firm of the PwC Network - comprising of a network of firms (with each being a separate legal entity) in 157
countries with more than 270,000 people, who are dedicated to working together, providing quality services to clients throughout the world.

Our Thought Leadership in Myanmar

PwC Service Offerings
• Business strategy Tax Updates IFRS 16 New Leasing
• Busy-side due diligence Standard
• Capital projects & infrastructure advisory
• Capital raising
• Corporatisation & Privatisation
• Direct and indirect taxation services
• Governance and controls
• Forensic services
Transforming Yangon Doing Business in
• Incorporation and corporate secretarial services the Heart of Myanmar Yangon
• IFRS/Financial reporting advisory
• Joint venture & strategic alliance
• IT risk and security
• Post-deal integration
• Mergers and acquisition – sell side transaction support
• Mergers and acquisitions – financial Advisor
• Market entry advisory & market studies Myanmar Business Fitting together the
• Stock market listing preparation Guide pieces of the
• Project assurance infrastructure puzzle
• Pre-deal re-organisation
• Valuations advisory

23 February 2020
PwC PwC Myanmar Weekly Business Intelligence 29
 PwC Myanmar Weekly Business Intelligence Publication
For further information please contact:

Jennifer Tay
Partner
Capital Projects & Infrastructure, PwC Singapore
+65 8876 9300
jennifer.c.tay@sg.pwc.com

Soe Moe Aung

Manager
Deal Advisory, Capital Projects & Infrastructure, PwC Myanmar
+95 968 082 3394
soe.moe.aung@mm.pwc.com

© 2020 PricewaterhouseCoopers Myanmar Co. Ltd. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Myanmar Co. Ltd., which is a member firm of
PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. Please see http://www.pwc.com/structure for further details.