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PwC Myanmar Weekly Business IntelligenceIssue No. 203
8 March 2020
8 March 2020
PwC
Disclaimer
2PwC Myanmar Weekly Business Intelligence
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Upcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
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Infrastructure
Transport
• Firms invited to bid for upgrade of Yangon-Mandalay expressway
• Locals voice approval for Yangon Elevated Expressway
• Yangon mayor takes action to improve city parking
Energy
• Power projects on track for completion, ministry says
• Gov’t faces hydropower project delays due to COVID-19
• Myanmar govt faces setbacks in enforcing compliance with EITI database
Real Estate
• Kachin State Inks Border Business Park Deal With China-Myanmar Joint Venture
• Myanmar’s first hostel Startup Plans to Bring Silicon Valley Culture to the country
Waste and Water
• As Myanmar farmers lose their land, sand mining for Singapore is blamed
Other Infra
• Western pressure pushes Myanmar towards China, research firm says
• No timetable for restoration of internet access in Rakhine, Chin
• Myanmar Will Benefit From Deeper Ties With India
Infrastructure
• Insurers authorised to provide bancassurance in Myanmar
• 11 Factories in Myanmar Close Due to Lack of Orders, Raw Materials
• Foreign insurers added more than $120M to industry in Myanmar
• Mother Finance, NearMe collaborate to expand fintech reach in Myanmar
• Purchasing index shows slowdown in Myanmar’s manufacturing
Financial and Business
• Businesses call for CBM intervention on exchange rate, virus
• Is constitutional reform a journey to nowhere?
• UN seeks $877m for Rakhine refugees in Bangladesh
• Microloan Providers Need MRSD Approval
• ASEAN in position to make strategic gains from Brexit
Policy and Regulation
Highlights
• “The Ministry of Construction will invite Expressions of Interest from the private sector for the
upgrading of the Yangon–Mandalay Expressway, U Han Zaw, Minister of Construction said. The
project is one of the 58 national development projects listed in the Myanmar Project Bank.”
• “Insurance Business Regulatory Board (IBRB) on March 4 released three directives, including one
- Directive No 2/2020 - allowing banks and microfinance institutions to operate as agents selling
insurance after obtaining approval from the Central Bank of Myanmar and Microfinance Business
Supervisory Committee.”
• “Seven new power plants that are expected to generate more than 1,000 megawatts of additional
electricity are being built in Magwe, Shwetaung, Kyunchaung, Ahlone, Kyaukphyu, Thanlyin, and
Thaketa, with the aim of fulfilling the projected increase in demand nationwide for electricity during
the hot season.”
InfrastructurePolicy and
Regulation
Tender
Opportunities
MIC
Permitted
Projects
Upcoming
Events
Financial and
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8 March 2020
Financial and Business
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8 March 2020
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Financial and Business
Insurers authorised to provide bancassurance in Myanmar
Prudential Myanmar Life Insurance Limited, a
subsidiary of UK-based Prudential plc, has
signed a partnership with Yoma Bank to provide
Myanmar customers with life insurance solutions.
The two firms signed a memorandum of
understanding allowing Yoma Bank to distribute
Prudential Myanmar’s savings and protection
products at its branches across the country,
according to a release on March 5. Yoma Bank
has over 80 branches across 43 cities.
The announcement comes after the Insurance
Business Regulatory Board (IBRB) on March 4
released three directives, including one -
Directive No 2/2020 - allowing banks and
microfinance institutions to operate as agents
selling insurance after obtaining approval from
the Central Bank of Myanmar and Microfinance
Business Supervisory Committee.
The practice, known as bancassurance, is
expected to help insurance providers extend the
reach of their products. According to research
commissioned by KBZ MS, the total
bancassurance channel in Myanmar could grow
to K2 trillion [US$1.3 billion] if applied to the total
projected insurance market in Myanmar by 2029.
As such, Directive No 2/2020 has been long
anticipated by the industry. Up until its release,
only two insurance providers - KBZ MS and AYA
SOMPO - were authorised to engage in
bancassurance on a provisional basis.
Along with the release of the directive regarding
bancassurance were two directives regulating
insurance licensing and insurance product
approval process.
Directive No 1/2020 stipulated that insurance
providers must seek separate licenses to offer
life and non-life products.
Directive No 3/2020 indicated that all new
insurance products require approval from the
IBRB, according to the Insurance Business Law.
Only one product can be submitted for review to
the IBRB each time.
In November 2019, Prudential together with
Japanese Dai-ichi Life, Hong Kong AIA, US
Chubb and Canadian Manulife were granted a
licence from the Ministry of Planning and Finance
of Myanmar to operate a wholly-owned life
insurance business in the country.
Source: Myanmar Times
https://www.mmtimes.com/news/insurers-
authorised-provide-bancassurance-
myanmar.html
05 Mar 2020
Myanmar aviation sector expected to become profitable, but more pain ahead first
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
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 Timeshttps://www.mmtimes.com/news/myanmar-aviation-sector-expected-become-profitable-more-pain-ahead-first.html
27 Jan 2020
Upcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
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Financial and Business
11 Factories in Myanmar Close Due to Lack of Orders, Raw Materials
YANGON – Thirteen factories in Yangon and
Bago regions have closed or cut back staff in
Myanmar since January due to factors like a lack
of raw materials, no orders and no buyers,
according to the Ministry of Labor’s factories
inspection department.
U Nyunt Win, director general of the department,
told The Irrawaddy on Wednesday that seven
factories had closed permanently, four had shut
temporarily and two had reduced their
workforces.
Most are garment factories, with the others
making shoes, steel, wood, paper and printed
goods.
The Labor Ministry declined to name the
factories.
”The factory closures were due to loss of
business, lack of orders and lack of raw
materials,” said U Nyunt Win.
He said some of the factories faced challenges
like industrial action and labor disputes. As a
result, businesses lost partners, as they could
not supply products on time.
Due to the factory closures, more than 3,000
workers were now unemployed. The shutdowns
were not all linked to the coronavirus, according
to the director-general.
The Union of Myanmar Federation of Chambers
of Commerce and Industry (UMFCCI) said
clothing factories were facing a shortage of
supplies from China because of COVID-19.
Many factories were planning to lay off staff or
stop operations if they faced long-term shortages
of supplies, according to the trade organization.
The UMFCCI requested that the government
allow employers to compensate workers based
on the minimum daily wage of 4,800 kyats
(US$3.4)—not their current salaries—if they
close a factory.
It also requested the government suspend
enforcing the new minimum wage until
September rather than in May, as previously
planned.
The federation called on banks to increase
lending at low-interest rates to factories dealing
with the coronavirus.
It also called on the government to prevent a
planned strike for those factories that might have
to close.
Source: The Irrawaddy
https://www.irrawaddy.com/news/burma/11-
factories-myanmar-close-due-lack-orders-raw-
materials.html
04 Mar 2020
Foreign insurers added more than $120M to industry in Myanmar
Investors have channeled some US$120 million
and K60 billion into the Myanmar insurance
sector since its liberalisation last year, according
to the Myanmar Investment Commission (MIC).
In 2019, the Ministry of Planning, Finance, and
Industry granted permission to five wholly foreign
life insurance companies and six joint venture life
insurance and non-life insurance companies to
operate in the domestic insurance market.
During the period, the five wholly foreign life
insurance companies - AIA, Chubb, Dai-ichi,
Manulife and Prudential - invested a sum totaling
$65 million, according to the MIC.
The three joint venture life insurance companies
– Capital Taiyo Life, CB Life and GGI Nippon
Life- invested $34 million and around K10 billion.
Meanwhile, the three joint venture non-life
insurance companies – AYA Sompo, GGI Tokio
Marine and KBZ MS – put in $26 million and K56
billion.
U Thant Sin Lwin, secretary of the MIC, said the
insurance sector contributed strongly to total
foreign direct investments (FDI) of around $2.6
billion in fiscal 2019-20.
Myanmar is expected to receive a total of $5.8
billion in FDI this fiscal year, according to the
MIC’s estimates.
Source: Myanmar Business Today
https://www.mmtimes.com/news/foreign-insurers-
added-more-us120m-industry.html
03 Mar 2020
Upcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
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Financial and Business
Mother Finance, NearMe collaborate to expand fintech reach in Myanmar
Mother Finance Co Ltd and NearMe Digital
Services on February 28 signed a collaboration
agreement to provide credit to NearMe's agent
and partner network.
Mother Finance, a licensed non-bank financial
institution which provides small loans to
customers via a mobile app, will be providing
unsecured SME loans to NearMe.
NearMe currently has over 50,000 partner stores
nationwide. The maximum amount that can be
borrowed is K500 lakh, said Daw Theta Aye,
CEO of Mother Finance.
U Linn Htike Aung, managing director of NearMe,
said "SMEs contribute a lot to the economy and
this is an excellent way to help them grow quickly
by making use of the latest digital technology."
NearMe is a mobile application which enables
users to make a variety of payments and
purchases such as taxes and public utilities as
well as flight tickets, bus tickets and over 70
other products.
Users typically pay by cash at the nearest
convenience stores and other NearMe agents
and partners.
For Mother Finance, the deal represents an
opportunity to expand its loan offerings to
NearMe's SME network and collect valuable
transaction data from its agents and partners.
"We have been offering collateral-free digital
loans to individual, both employed and self-
employed as well as SMEs on our mobile app
platform. We have provided our services to
customers in every state and division within
Myanmar. Expanding our offering to NearMe will
facilitate us with collecting transaction data of
agents and partners within their network," said
Daw Theta Aye.
Currently, customers of Mother Finance can
repay their loan through a total of more than
50,000 NearMe partner shops including City
Express, Oasis, Denko Mini Mart, Lugyimin and
eCity Phone outlets.
Mother Finance introduced Myanmar's first-ever
mobile app-based digital lending platform in July
2018. Since then, it has served over 60,000
registered users and has disbursed more than
K3 billion.
Source: Myanmar Times
https://www.mmtimes.com/news/mother-finance-
nearme-collaborate-expand-fintech-reach-
myanmar.html
01 Mar 2020
Purchasing index shows slowdown in Myanmar’s manufacturing
Myanmar’s latest Purchasing Manager’s Index
(PMI) figure for manufacturing is indicating that
manufacturing businesses are slowing.
IHS Markit, a London-based information provider,
released its report on Myanmar’s Manufacturing
PMI yesterday.
The headline IHS Markit Myanmar Manufacturing
PMI is a composite single-figure indicator of
manufacturing performance. It is derived from
indicators for new orders, output, employment,
suppliers’ delivery times and stocks of
purchases. Any figure greater than 50 indicates
overall improvement of the sector.
Business conditions in Myanmar’s manufacturing
sector abruptly stalled in February, according to
PMI survey data from IHS Markit. Overall
business conditions failed to improve for the first
time since October 2018, signalled by the
headline PMI coming in just below the no-change
mark of 50.
The PMI hit 49.8 in February, down sharply from
52.7 in January. The latest figure signalled
stagnation in manufacturing business conditions
in Myanmar.
“Myanmar’s 15-month run of improving
manufacturing business conditions was abruptly
halted in February, as the PMI equalled it’s
largest ever one-month fall to come in just below
the neutral 50 mark,’’ Trevor Balchin, economics
director at IHS Markit, said.
The drop in the PMI reflected weaker
contributions from four of the five components.
Growth of output and new orders both slowed
sharply since January, while employment was
broadly unchanged in February and stocks of
purchases declined at a faster rate. The final
component – suppliers’ delivery times – was
broadly stable despite some reports of delays
due to shutdowns in China.
Purchasing operations were scaled down in
February as a result of slower demand.
Suppliers’ delivery times lengthened by the most
in four months in February, but overall there was
little evidence of supply chain disruption resulting
from the COVID-19 outbreak in China.
The output and new orders indices remained in
expansion territory, but both fell sharply since
January.
Source: Myanmar Times
https://www.mmtimes.com/news/purchasing-
index-shows-slowdown-myanmars-
manufacturing.html
04 Mar 2020
Upcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
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8 March 2020
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Firms invited to bid for upgrade of Yangon-Mandalay expressway
The Ministry of Construction will invite
Expressions of Interest from the private sector for
the upgrading of the Yangon–Mandalay
Expressway, U Han Zaw, Minister of
Construction said.
The project is one of the 58 national
development projects listed in the Myanmar
Project Bank.
The project involves upgrading the 524 -km
expressway, currently the most important
transport route in Myanmar, to a international-
standard expressway with proper safety and road
control facilities.
The first 64 km from Yangon to Bago is expected
to be upgraded with assistance from the Asia
Development Bank. Feasibility studies are now
being conducted for the remaining sections of
Bago-Phyu-Naypyitaw-Meikhtila-Mandalay.
Work is expected to start in fiscal 2020-21 and
be complete by fiscal 2024-25. The project is
expected to cost US$ 960 million in total and
additional financing will be sought.
‘’The cost of the project is high so we are
planning to invite both local and international
investors from the private sector,’’ said U Han
Zaw.
The expressway also serves as a major access
road between China and India by functioning as
the Asian Highway 1 of the Asian Highway
network.
This is expected to play a key role in connecting
international logistics with Thailand and Vietnam
to inland Myanmar.
The project is also expected to reduce traffic
accidents and enhance driving comfort through
rehabilitation of damaged pavements, installation
of road safety facilities and improvement of
geometric alignment.
Source: Myanmar Times
https://www.mmtimes.com/news/firms-invited-
bid-upgrade-yangon-mandalay-expressway.html
05 Mar 2020
Myanmar aviation sector expected to become profitable, but more pain ahead first
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
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
27 Jan 2020
Infrastructure TransportUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
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Locals voice approval for Yangon Elevated Expressway
Locals have voiced their approval of the
construction of the Yangon Elevated
Expressway, which will begin in August,
according to the Highways Department under the
Ministry of Construction.
Deputy Director General U Kyi Zaw Myint said
his department has met with the locals and
addressed their concerns, including noise
pollution and potential flooding in areas under the
expressway. Compensation will be provided to
those affected by construction.
The first public meetings were held from
February 15 to March 1 in townships where the
flyover will pass through. The next meeting will
be held in July or August. “Overall, most
supported the project,” he said.
Meanwhile, the winning bidder for the project will
be announced in May, after which a ground-
breaking ceremony will be held in July.
Construction will begin in August and is
expected to take around five years to complete.
The expressway will be put into operation by May
2025.
The Yangon Elevated Expressway project will be
implemented by the Ministry of Construction and
Yangon Region Government under a Public
Private Partnership with the winning bidder.
The road will traverse eight major Yangon
townships – Mingalar Taung Nyunt, Tamwe,
Thingangyun, South Okkalapa, North Okkalapa,
Mayangone, Mingaladon, and Insein.
When complete, it will be 27.5 km in length, 8m
to 19.5 m in height and comprise four lanes. The
project is valued at US$900 million.
Source: Myanmar Times
https://www.mmtimes.com/news/locals-voice-
approval-yangon-elevated-expressway.html
05 Mar 2020
Yangon mayor takes action to improve city parking
Yangon Mayor U Maung Maung Soe said that
the government will take action against those
who obstruct parking spaces either with their
vehicles or by placing objects on the roads, in
order to improve traffic flow in the city.
“We have to solve the issue of people parking in
the wrong places on the roads, by labelling
designated parking spots in the downtown
townships of Yangon. We have had problems
with parking for a long time, and we expect
people to cooperate with the new laws,” said U
Maung Maung Soe.
Part of the measures include clearly delineating
parking spaces with white lines, and erecting
signs outlining new parking laws and amounts to
be paid for tickets.
In an effort to improve the lives of city dwellers
the YCDC has tried to alleviate traffic congestion
and car accidents in the city.
The latest measure targets drivers who park too
close to other vehicles or in the way of
pedestrians, said the mayor.
Residents or drivers who place objects in the
road (to reserve parking spaces) have those
objects confiscated under the law. Last year the
city townships confiscated 557 objects in
Kyauktada, 47 in Pabedan, 2,048 in Latha, 2,530
in Lanmadaw, 625 in Pazundaung and 549 in
Botahtaung township, making a total of 6,356 for
the 6 major downtown townships.
For the Eastern Districts of Yangon 797 objects
were confiscated, a massive 8,326 in the
Western District, 2,631 in the Southern District
and 1,107 in the Northern District, according to
Mayor.
YCDC Law Section 315, Sub-Section F states
that placing objects, construction materials,
furniture, or making modifications to public roads
and streets without YCDC’s permission, is
prohibited. Sub-section N states that moving a
vehicle, parking or stopping on a public road for
an extended period of timein the city is
prohibited.
The fines for violations are K100,000 to
K500,000 for first time offenders, and the
subsequent violations can be punished with
imprisonment up to three months.
Source: Myanmar Times
https://www.mmtimes.com/news/mayor-takes-
action-improve-city-parking.html
02 Mar 2020
Infrastructure TransportUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
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Power projects on track for completion, ministry says
To provide electricity before height of the dry
season arrives in March, new power plants need
to be completed on time, says Deputy Minister of
Electricity and Energy U Khin Maung Win.
Seven new power plants that are expected to
generate more than 1,000 megawatts of
additional electricity are being built in Magwe,
Shwetaung, Kyunchaung, Ahlone, Kyaukphyu,
Thanlyin, and Thaketa, with the aim of fulfilling
the projected increase in demand nationwide for
electricity during the hot season.
Of the projects, five are being implemented
under a tender called by the Ministry of Electricity
and Energy last June.
Two of the projects, a 151.54MW power plant in
Ahlone and a 20mw power plant in Kyunchaung
being built by Chinese companies. will generate
electricity with natural gas provided by the
government.
The other three projects, a 150MW plant in
Kyaukphyu, Rakhine State, and a 350MW plant
in Thanlyin, and a 400MW plant in Thaketa, both
in Yangon Region, will generate electricity with
imported liquefied natural gas.
V-Power Co, the Hong Kong-based winner of
one of the tenders, says its work for the power
project is on track, with work on infrastructure
such as jetties for the docking of LNG-carrying
ships, regasification units, pipelines to carry
natural gas, and power transmission lines
progressing rapidly in Thilawa, Yangon.
However, work on the 150MW plant in Ahlone,
Yangon , under China Energy Engineering Corp
(CEEC), has hit some setbacks. China-based
suppliers of machinery for the project have been
closed because of the COVID-19 outbreak and
experts from the companies have also been
unable to come to Myanmar due to travel
restrictions put in place to combat the outbreak,
says a spokesperson from the Ministry of
Electricity and Energy.
Meanwhile, a 66MW natural gas power plan in
Magway has started operating.
The country’s power needs are increasing 15pc
to 17pc per year with present power production
totalling 3,566 MW. Yangon Region uses 50pc of
the total at 1,436 MW and Mandalay Region
comes second with over 500 MW.
The ministry said power demand is expected to
rise by 1,500 MW this year.
Source: Myanmar Times
https://www.mmtimes.com/news/power-projects-
track-completion-ministry-says.html
03 Mar 2020
Grab says it pumped $100M into Myanmar in four years
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
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
12 Feb 2020
Infrastructure EnergyUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
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Gov’t faces hydropower project delays due to COVID-19
YANGON-Due to the COVID-19 outbreak,
factories have shut down in China and Chinese
experts have stopped coming, causing delays to
hydropower projects, according to the Ministry of
Electricity and Energy.
Deputy Minister of Electricity and Energy Khin
Maung Win inspected construction of 151-MW
power plant in Ahlon Township, Yangon, on
March 1st, instructing to complete timely
construction of the project to meet schedule, to
increase power generation, to meet the set
standard of the project, to install the equipments
for the early arrival of the equipments and
practice worksite safety.
He also laid down the plans to cope with delays
as the factories in China were closed and the
experts cannot travel to Myanmar due to the
COVID-19 outbreak.
Later, the deputy minister and party proceeded to
the implementation of 350-MW LNG to Power
Thilawa Plant in Kyauktan Township, Yangon
Region. They observed the installation of
Regasification Unit, 40% completion of jetty
construction, linking of gas pipe lines and
construction of seven 230-KV pylons.
With the aim to support the power consumption
within Summer, plans were underway to
generate over 1000-MW electricity from newly
seven power plant projects in Magway, Shwe
Taung, Kyunchaung, Ahlon, Kyaukphyu,
Thanlyin and Tharkayta Townships, according to
the Ministry of Electricity and Energy.
Source: Eleven Myanmar
https://elevenmyanmar.com/news/govt-faces-
hydropower-project-delays-due-to-covid-19
03 Mar 2020
Myanmar govt faces setbacks in enforcing compliance with EITI database
The government says it lacks the mechanisms to
force companies to disclose ownership
information through a public registry, which are
part of recent measures to clean up corruption in
the extractive industry.
Myanmar’s Extractive Industries Transparency
Initiative (EITI) unit, a government body under
the finance ministry, held a press conference on
February 28 to address criticisms over those
measures.
According to a report released by natural
resources expert Charlotte Boyer on the same
day, out of a total of 163 extractive companies,
121 submitted information about their beneficial
owners, but 31 of those had major flaws or
disclosed insufficient information. The “significant
gaps” in their submissions undermined the
credibility of the data or showed a weak
understanding of the beneficial ownership
requirements, the report said.
Set up to meet the requirements of EITI, the
database covers five state-run enterprises,
including Myanma Gem Enterprise and Myanma
Oil and Gas Enterprise, and 158 other extractive
entities.
The public registry is part of the government’s
efforts to tackle issues related to beneficial
ownership, referring to individuals who ultimately
own or substantially benefit from a private
company, and “politically exposed persons”
(PEP), defined as people who are or were
entrusted with prominent public functions and
their family members and associates.
As Paul Donowitz, Global Witness Myanmar
team leader, explained, the information is
supposed to help prevent the corporate
anonymity which facilitates money laundering,
bring transparency to licencing and public
procurement, reduce opportunities for fraud and
cronyism, and boost investor confidence.
However he added: “The released data itself is
riddled with incomplete and inaccurate
information, and the current legal framework and
available resources for implementation and
enforcement are lacking.”
The Myanmar Times earlier identified serious
flaws in the database.
Source: Myanmar Times
https://www.mmtimes.com/news/myanmar-govt-
faces-setbacks-enforcing-compliance-eiti-
database.html
03 Mar 2020
Infrastructure EnergyUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
PwC 13PwC Myanmar Weekly Business Intelligence
Kachin State Inks Border Business Park Deal With China-Myanmar Joint Venture
YANGON—The Kachin State government has
signed a memorandum of understanding (MOU)
with a Chinese-backed company to develop a
business park project in Kanpiketi, a border town
in northern Myanmar, as part of Beijing’s
ambitious grand infrastructure plan, the Belt and
Road Initiative (BRI).
On Wednesday, the MOU was signed by the
state government and Myanmar Heng Ya
Investment Development Company Ltd, a joint
venture between Myanmar’s Kampaiti
Development Company Ltd and China’s Yunnan
Tengying Trading Company Ltd. The Chinese
company holds a 70-percent stake while the
Myanmar company holds 30 percent.
The signing ceremony was held at the Kachin
State government office in Myitkyina, the state
capital, witnessed by State Minister of Finance,
Revenue, Planning and Economy U Wai Lin,
State Minister for Electricity and Industry U Win
Nyunt and other officials from both sides,
according to a press release from the Myanmar
Ministry of Information.
At an estimated cost of US$22.4 million (31.85
billion kyats), the Kanpiketi Business Park will
cover nearly 70 acres (28 hectares) in the border
town in northern Kachin State’s Special Region
1. The area is controlled by the New Democratic
Army-Kachin (NDAK) militia, which is allied with
the Myanmar military.
According to the Directorate of Investment and
Company Administration (DICA), the sons of
NDAK militia founder Zahkung Ting Ying are the
directors of the Kampaiti Development Company.
The NDAK was converted into a Border Guard
Force (BGF), a government-sponsored militia, in
2009 and still has significant influence in Special
Region 1.
Yunnan Tengying Trading Company Ltd is a
subsidiary of Yunnan Baoshan Hengyi Industry
Group. The Irrawaddy has learned that Baoshan
Hengyi also operates in the Kachin State capital
of Myitkyina under the name Yunnan Tengchong
Heng Young Investment Company (YTHYIC).
The company signed an agreement with the
Kachin State government in 2018 to develop the
US$400-million Myitkyina Economic Zone on
4,700 acres of land along the historic Ledo Road.
The project has drawn criticism for lacking
transparency.
Source: The Irrawaddy
https://www.irrawaddy.com/news/burma/kachin-
state-inks-border-business-park-deal-china-
myanmar-joint-venture.html
04 Mar 2020
Grab says it pumped $100M into Myanmar in four years
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
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
12 Feb 2020
Infrastructure Real EstateUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
PwC 14PwC Myanmar Weekly Business Intelligence
03 Mar 2020
Myanmar’s first hostel Startup Plans to Bring Silicon Valley Culture to the country
There are three things the Draper Startup House
Yangon is full of – young startups, entrepreneurs
and worldwide travelers. Take a seat at the
hostel’s watering hole, a bar supported by HAPA
Coffee & Cocktail, and the murmurs of startups,
VCs, entrepreneurs and digital nomads at
neighboring tables will soon flow into your ears.
Located in the heart of downtown Yangon, Tribe
Theory Hostel is a Singapore-based hostel chain
rebranded as Draper Startup House (DSH) after
securing $3.5 million from venture capitalist and
Draper Venture Network founder Tim Draper. For
its tenants, it’s aspirins for the headache of
fluctuating property prices and precarious,
flexible and mobile nature of today’s working
culture.
In two years of operation, the hostel has
expanded to locations worldwide including Bali,
Singapore, Yangon, Estonia, Manila, Lisbon and
Bangalore, with its first U.S. property to open in
Austin, Texas in March.
The hostel, whose robin’s-egg-blue doorway is
engraved with the words 1950s, not only injects a
sense of vitality to the quiet street but also greets
travelers with a colorful and homey decor. By
combining capsule beds in shared dorm rooms
with the entrepreneurial environment of a co-
working space, the hostel is slated to build up a
young entrepreneurs’ community.
Office-sharing startup WeWork’s swift and
spectacular fall from grace turned a much-touted
success story into a cautionary tale. Draper
Startup House, however, hacked the co-working
model by forming a curated community for young
professionals who enjoy a multitude of stunning
amenities with the freewheeling vibe of working
at a startup.
“Since the beginning, we have never identified
ourselves as a co-working or co-living space. We
identify ourselves as a startup which impacts
people through our beds, events and the
travelers,” CK Goyal, co-founder of Draper
Startup House, told Myanmar Business Today.
“What we are doing is more intimate, and also
the working space and events are more
impactful,” he added.
When asked about the reason for picking
Yangon over cities in neighboring countries,
Goyal said the market is “so raw” that it offers
endless possibilities and opportunities.
Source: Myanmar Business Today
http://mmbiztoday.com/myanmars-first-hostel-
startup-plans-to-bring-silicon-valley-culture-to-
the-country/
17 Feb 2020
Infrastructure Real EstateUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
PwC 15PwC Myanmar Weekly Business Intelligence
As Myanmar farmers lose their land, sand mining for Singapore is blamed
YANGON/SINGAPORE (Reuters) - From a boat
on the Salween River in southeastern Myanmar,
Than Zaw Oo pointed to a brown stretch of water
he said was once full of lush paddy fields.
“This used to be my land,” said the 51-year-old
farmer, frowning at the murky waves.
All but six of the 24 acres where he used to grow
rice and vegetables have slipped into the water
in recent years, he said. Another farmer, Than
Tun, said he had lost 15 acres of his land to
erosion. While official records were not available,
other villagers backed their accounts.
Farmers and politicians in Chaungzon township,
just outside the southern town of Moulmein,
worry that erosion in the area is being
exacerbated by the ships that dredge its bed for
sand each night. The sand is mainly bound for
Singapore, the world’s biggest importer, for use
in reclamation and construction projects.
Both the Myanmar government and the company
whose ships do the dredging in Chaungzon deny
the dredging is causing the erosion. But the
dispute highlights the fractious issue of sand-
mining in Southeast Asia as Singapore is forced
to look farther afield to slake its thirst for the
mineral following bans on the trade in countries
like Malaysia and Indonesia over environmental
concerns.
Sand mining has been blamed by scientists for
damaging sensitive ecosystems around the
world, accelerating coastal and riverine erosion,
and exacerbating the frequency and severity of
floods and droughts, according to a 2019 report
by the U.N Environment Programme.
Malaysia, formerly the biggest source of sand for
Singapore, in 2018 introduced an outright ban on
the export of sea sand, used for land
reclamation, and imposed tighter controls on
river sand, used mostly in construction.
Cambodia made a similar move in 2017, while
Indonesia banned exports to Singapore in 2007,
causing a “sand crisis” that brought building
activity almost to a halt. Singapore, an island
state that has grown 25 percent since its
independence in 1965 thanks largely to
aggressive land reclamation, has since bolstered
its stockpiles, according to sand traders.
Source: Reuters
https://www.reuters.com/article/us-myanmar-
sand-singapore-insight/as-myanmar-farmers-
lose-their-land-sand-mining-for-singapore-is-
blamed-idUSKBN20R0C1
04 Mar 2020
Grab says it pumped $100M into Myanmar in four years
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
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
12 Feb 2020
Infrastructure Waste and WaterUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
PwC 16PwC Myanmar Weekly Business Intelligence
Western pressure pushes Myanmar towards China, research firm says
A global research agency believed increasing
pressure from the west on Myanmar’s alleged
rights violations would push the country’s political
and economic allegiance towards China, even if
Myanmar seeks diversification of trade relations.
Fitch Solutions, a unit of the UK Fitch Group,
said China looks likely to be the dominant foreign
influence over the coming years with its already
entrenched interests over Myanmar coupled with
the possibility of news sanctions from the West
due to human rights abuses.
“The government’s inaction and repeated
equivocation of the alleged abuses risks
Myanmar becoming even more isolated on the
international stage and also sanctions being
expanded to include civilians and the economy,”
said Fitch Solutions in its latest Outlook for
Myanmar report released last week.
The atrocities committed against the northern
Rakhine Muslims has once again caught the
international attention recently as the
International Court of Justice in January imposed
emergency “provisional measures” on Myanmar,
ordering the country to preserve evidence of
crimes and report to the court on measures taken
to prevent genocide. The case derived from the
military crackdown that resulted in more than
740,000 northern Rakhine Muslims fleeing to
Bangladesh.
The EU Commission’s decision in early February
to partially withdraw Cambodia’s trade
preference under the Everything But Arms (EBA)
trade preferences initiative renewed worries
about the EU removing Myanmar’s privileged
status.
China, however, remains Myanmar’s safest bet.
In terms of security and peace, China has proved
to be indispensable with over 60 percent of
weapon supply to the Tatmadaw between 2014-
18, while playing a key role in the national
ceasefire negotiation between ethnic armed
groups and the government.
On the economic front, China has been the top
investor following the tumbling of western
investment after the Rakhine humanitarian crisis
that shocked the world in 2017.
Source: Myanmar Times
https://www.mmtimes.com/news/western-
pressure-pushes-myanmar-towards-china-
research-firm-says.html
06 Mar 2020
Grab says it pumped $100M into Myanmar in four years
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
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
12 Feb 2020
Infrastructure Other InfraUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
PwC 17PwC Myanmar Weekly Business Intelligence
No timetable for restoration of internet access in Rakhine, Chin
The government said it will not restore internet
access in some townships in Rakhine and Chin
states, despite calls both here and abroad to lift
the ban.
U Soe Thein, permanent secretary of the Ministry
of Transport and Communications, said he did
not know when internet would be restored in the
townships of Maungdaw, Buthidaung,
Rathedaung, Ponnagyun, Mrauk-U, Kyauktaw,
Minbya and Myebon in northern Rakhine and
Paletwa in Chin.
“We will issue a statement when access is
restored,” he told participants at a digital forum in
Yangon recently.
Internet access was cut off in the townships last
June. In August, service was restored in
Maungdaw, Buthidaung, Rathedaung, Myebon
and Paletwa, but it was cut off again on February
3.
The Tatmadaw (military) and Arakan Army (AA)
have been fighting in the area since November
2018.
In Mrauk-U, 11 civilians were killed in four days
of clashes between the Tatmadaw and AA that
started on Saturday, a Rakhine civic group said.
In nearby Rathedaung, 24 houses were
destroyed when artillery shells landed in a village
over the weekend.
In Paletwa, all transport routes have been cut off
by the fighting since early February, causing food
shortages affecting over 100,000 people.
The AA, comprised mostly of ethnic Rakhine
Buddhists, was set up in 2009 to fight for more
autonomy from the Myanmar government.
Internet rights advocates criticised the internet
blackout in Rakhine and Chin, saying it violated
the people’s right to information.
"We don’t know who we can rely on for
information. We want the internet restored as
soon as possible," a Paletwa resident said.
Ma Ei Myat Noe Khin, who discussed digital
rights at the forum, urged the government to
restore people’s rights.
"The people of this country are democratically
fighting for their rights,” she said. “The
government should immediately stop taking
these actions."
"I demand the restoration of the internet,” she
added. “And it should not reduce internet speeds
during the elections."
Source: Myanmar Times
https://www.mmtimes.com/news/no-timetable-
restoration-internet-access-rakhine-chin.html
05 Mar 2020
Infrastructure Other Infra
Myanmar Will Benefit From Deeper Ties With India
If Myanmar wants to counterbalance China, it will
need to develop stronger ties with India, its other
giant neighbor—and the world’s largest
democracy.
During President U Win Myint’s recent visit to
India, the two countries signed 10 agreements
with a focus on socioeconomic development in
Myanmar.
Myanmar, which shares a land border with
northeastern India stretching for some 1,624
kilometers, is geopolitically significant to New
Delhi’s “Act East” policy, which aims to boost
economic integration with Southeast and East
Asia.
When she visited India for the first time as an
opposition figure in 2012, Daw Aung San Suu
Kyi, who is now Myanmar State Counselor,
described the bilateral friendship in personal
terms, saying, “I feel myself partly a citizen of
India—a citizen of love and honor.” Her father,
Myanmar independence hero General Aung San,
was a personal friend of Jawaharlal Nehru,
India’s first prime minister. Her mother, Daw Khin
Kyi, later served as ambassador to New Delhi.
Suu Kyi, who also went to school in India,
praised the people of the country, “who have
given me so much affection, so much warmth
with such generosity that I have never felt myself
to be far away from India even in the days when I
had little contact with you.” In 1995, she received
the Indira Gandhi Memorial Trust award, though
she was unable to accept the award in person,
as she was not allowed to leave Yangon.
Daw Aung San Suu Kyi has clearly long viewed
India as important, but Myanmar’s generals also
have a keen understanding of the significance of
New Delhi’s role in the region’s geopolitical
game. Before leaving his powerful position in
2011, former Myanmar dictator Senior General
Than Shwe paid two highly publicized overseas
visits: to India and China. The twin visits showed
that the two nations were equally important to
Myanmar.
Today, India’s strategy is to engage with
Myanmar through five “C’s”: connectivity,
commerce, capacity-building, culture and
community. However, the ongoing relationship
with India needs to be taken to a more strategic
level.
Source: The Irrawaddy
https://www.irrawaddy.com/opinion/editorial/mya
nmar-will-benefit-deeper-ties-india.html
03 Mar 2020
Upcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
Policy and Regulation
18
8 March 2020
PwC 19PwC Myanmar Weekly Business Intelligence
Businesses call for CBM intervention on exchange rate, virus
With the COVID-19 virus outbreak set to impact
Myanmar’s economy and recent rapidly
fluctuating foreign exchange rates, the Union
Federation of Chamber of Commerce and
Industry (UMFCCI) has requested the Central
Bank of Myanmar (CBM) to intervene.
“COVID-19 will have impacts on Myanmar’s
economy. At present, tourism has plummeted
and regular exports of fruit to China have slowed
to a trickle. From a global perspective, many
foreign governments and central banks are
instituting quick responses to recent situations. In
Myanmar, another recent issue is the fluctuation
of foreign exchange rates. The kyat has
strengthened against the US dollar, making local
products more expensive for foreign buyers” said
UMFCCI Secretary General U Aye Win on
March. 5
“We can foresee how far they impacts will reach
– they may affect all local businesses including
severe impacts on agriculture-related sectors,” U
Aye Win added.
Since the majority of Myanmar’s exports are
agricultural products, the sector may face
hardships due to the strength of the kyat.
Many business owners are asking for the CBM to
step in to help stabilise the exchange rate as
they are already having to deal with virus
outbreak. Although CBM is responsible for the
stability of monetary system, it also needs to
make the country’s economy develop as well, he
said.
Local businesspeople especially exporters and
those in the agricultural sector have been asking
the UMFCCI what action CBM will take on on
interest rates to mitigate economic impacts and
current exchange rates, said U Aye Win.
The garment, tourism, and export sectors as well
as small and medium sized enterprises and
farmers are facing hardships due to the current
situation, said Daw Khine Khaine Nwe, secretary
general of the Garment Manufacturers’
Association.
According some authorities in China, the
production of some raw materials such as textiles
and fabrics will return to normal by the end of
April, and the raw material manufacturing
industries in China are currently operating at just
30 percent capacity.
Source: Myanmar Times
https://www.mmtimes.com/news/businesses-call-
cbm-intervention-exchange-rate-virus.html
06 Mar 2020
Myanmar aviation sector expected to become profitable, but more pain ahead first
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
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 Timeshttps://www.mmtimes.com/news/myanmar-aviation-sector-expected-become-profitable-more-pain-ahead-first.html
27 Jan 2020
Policy and RegulationUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
PwC 20PwC Myanmar Weekly Business Intelligence
Is constitutional reform a journey to nowhere?
Members of the Pyidaungsu Hluttaw are
preparing to vote on a series of amendments to
the constitution but it is unlikely that any of them
will be approved.
PROPOSALS to amend the 2008 Constitution
are finally being discussed in the Pyidaungsu
Hluttaw and the debate has been lively. There
have been heated exchanges between members
of the politically dominant National League for
Democracy and unelected military MPs and
lawmakers from the Union Solidarity and
Development Party, who oppose the NLD’s
proposals for charter reform. Debate has been so
robust at times that the speaker has directed that
some outbursts be expunged from the
parliamentary record.
After its landslide victory in 2015, the NLD waited
until January 2019 – almost three years after
taking office – to begin implementing its election
campaign pledge to reform the constitution. The
NLD took a similar approach to that adopted by
Thura U Shwe Mann in his capacity as speaker
of the Pyidaungsu Hluttaw during the USDP
government, and appointed a constitutional
amendment joint committee, which was tasked to
prepare a draft bill to amend the charter.
The unelected Tatmadaw MPs objected to the
45-member committee as being unlawful. While
the NLD was trying to draft a constitutional
amendment bill that incorporated the opinions of
all parties in the Pyidaungsu Hluttaw, USDP and
Tatmadaw MPs submitted five of their own
amendment bills.
In early February, the NLD-controlled joint bill
committee finalised two amendment bills and
sent them to parliament for debate alongside the
five USDP and military bills. One bill contains
changes that would also require approval at a
national referendum, while the other contains
those changes that only require Pyidaungsu
Hluttaw approval. We can learn from these seven
bills about the changes sought to the constitution
by the NLD and ethnic parties on one side, and
by the Tatmadaw and USDP lawmakers, on the
other.
A bill submitted by Pyithu Hluttaw MP U Thein
Htun (USDP, Kyaunggon) proposes that chief
ministers of the states or regions be elected by
their respective hluttaw and not be appointed by
the president.
Source: Frontier Myanmar
https://frontiermyanmar.net/en/is-constitutional-
reform-a-journey-to-nowhere
04 Mar 2020
UN seeks $877m for Rakhine refugees in Bangladesh
UN agencies and NGO partners are seeking
US$877 million to meet the massive needs of
northern Rakhine refugees in Bangladesh, as the
United Nations High Commissioner for Refugees
(UNHCR) blasted Myanmar for not doing enough
for their safe return.
More than 855,000 Rakhine refugees from
Myanmar and over 444,000 Bangladeshis
hosting them in the local communities are
expected to benefit from the programme, now on
its third consecutive year.
The 2020 Joint Response Plan (JRP) allocates
the bulk of the plan to fund vital services and
assistance including food needs, shelter, clean
water and sanitation, while the others go to
health, protection, education, among others.
“The world must stand by the Rohingya and by
the Government and people of Bangladesh who
continue to host them,” said Filippo Grandi,
UNHCR chief said in an online statement.
Compared to previous years, the 2020 JRP
draws focus on the well-being of the affected
Bangladeshi communities from public service
infrastructure to energy initiatives. The JRP,
meanwhile, continues to provide protection for
refugees and life-saving assistance to those in
need.
The JRP in 2019 highlighted a critical
achievement of biometric registration of all
refugees living in the camps. The measure
helped secure their identities, enhance their
protection and lay the foundations for an even
more targeted, effective and efficient
humanitarian response in the future.
Last year, the programme received 70 percent of
its funding target at $650 million.
More than one million Rakhine refugees currently
reside in Bangladeshi camps bordering
Myanmar, due to Tatmadaw crackdown in
August 2017 following simultaneous attacks
launched by the Arakan Rohingya Salvation
Army on over 30 government outposts in
northern Rakhine.
Many refugees expressed their desire to return to
their birthland but fear the alleged continuing
discriminative policies and violence. Only around
600 refugees have so far voluntarily returned.
“The solution continues to be in Myanmar”, said
Mr Grandi, speaking on the sidelines of the 2020
JRP launch on Tuesday in Geneva.
Source: Myanmar Times
https://www.mmtimes.com/news/un-seeks-877m-
rakhine-refugees-bangladesh.html
04 Mar 2020
Policy and RegulationUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
PwC 21PwC Myanmar Weekly Business Intelligence
Microloan Providers Need MRSD Approval
To provide microloans to government and
private-sector employees, microfinance
companies need approval from the Microfinance
Regulation and Supervision Division (MRSD), the
regulator said via a statement.
Lenders will not need permission to provide
microloans to their own employees, but they
need to inform the regulator of their loan-granting
process.
MRSD’s statement also said that microfinance
companies may not ask for recommendation
letters from the department where a borrower
works, deduct their salary as loan repayment, or
pressure borrowers with loan-default action
under the Civil Servant Law and Regulation
framework. Furthermore, lenders are required to
give government employees and their own
employees the same treatment when considering
loan applications.
Failure to comply with MRSD instructions will be
subject to penalties up to and including license
revocation, in accordance with the Microfinance
Business Law.
Between 2012 and April 2019, 181 financial
institutions registered as microfinance providers.
To tackle the problem of overlapping credit,
Myanmar will establish a credit bureau in April
tasked with collecting and storing borrowers’
credit history. Microfinance industry stakeholders
have pointed out that the problem stems from the
lack of formal data on microloans and the fact
that the loans are so small.
Myanmar Credit Bureau in December 2018
signed an agreement with Equifax New Zealand
Services and Solutions to establish a credit
bureau system.
Source: Myanmar Business Today
https://mmbiztoday.com/microloan-providers-
need-mrsd-approval/
03 Mar 2020
ASEAN in position to make strategic gains from Brexit
BANGKOK -- Britain reigned supreme in the
world's ocean from the 17th to 20th centuries,
and its formal withdrawal from the European
Union at the end of January means it has started
redefining its political and diplomatic priorities in
line with its old identity as a leading maritime
country.
After half a century of concentrating its strategic
attention on the continent, the U.K.'s strategic
focus is now shifting toward the Indo-Pacific,
where it once had a dominant economic and
military presence. As a result of this seismic
geopolitical shift, the Association of Southeast
Asian Nations is facing the need to figure out the
full implications of Britain's return as a maritime
power.
On Jan. 15, just over two weeks before Brexit
day, Heather Wheeler, who was then a
parliamentary undersecretary of state at the
Foreign and Commonwealth Office in charge of
the Asia-Pacific region, visited the ASEAN
headquarters in Jakarta and conveyed London's
message to ASEAN Secretary-General Lim Jock
Hoi.
"We've been a dialogue partner via the European
Union for over 40 years. We would like to have
that status going forward. We realize it is going to
take a little time to get that done but we are
planting the seed today to say that we'd like U.K.
dialogue status with ASEAN partners," Wheeler
said.
ASEAN has been developing close ties with its
dialogue partners through regular high-level talks
over regional and global issues since 1978, when
Japan became the first country to acquire the
status. Now, nine countries and one international
organization -- the EU -- are ASEAN's dialogue
partners. The EU joined the list in its former
guise as the European Community in 1979.
These dialogue partners have their own missions
to ASEAN in Jakarta, which serve as liaison
offices for their exchanges and communications
with the trade bloc.
The U.K. has opened its new mission to ASEAN
and will hold a ceremony to celebrate its
establishment at the end of February.
But ASEAN has not added any country to the list
of its dialogue partners since 1996, when India,
China and Russia joined the ranks.
Source: Nikkei Asian Review
https://asia.nikkei.com/Spotlight/Comment/ASEA
N-in-position-to-make-strategic-gains-from-Brexit
23 Feb 2020
Policy and RegulationUpcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
Tender Opportunities
22
8 March 2020
PwC
Tender Opportunities in Myanmar
23PwC Myanmar Weekly Business Intelligence
Source: World Bank Group, Asian Development Bank, Consult Myanmar
No Organisation Title Publication Date Closing Date
1 Asian Development Bank TA-9694 MYA: Impact Evaluation of the Climate-Friendly Agribusiness Value Chains Sector Project - Impact
Evaluation (48409-005)
06 Mar 2020 20 Mar 2020
2 Asian Development Bank TA-9723 REG: Support for Human and Social Development in Southeast Asia - Preparing the REG: Healthy
Borders Special Economic Zones (Consulting Firm) (52335-001)
03 Mar 2020 16 Mar 2020
3 Asian Development Bank TA-9571 REG: Consulting firm with specific expertise in health security and One Health approaches - Consulting
firm with specific expertise in health security and One Health approaches (51151-001)
26 Feb 2020 11 Mar 2020
4 Asian Development Bank GRANT-0617 MYA: Climate-Friendly Agribusiness Value Chains Sector Project - CS-02 Feasibility Studies and
Detailed Design Consultants (FSDDC) (48409-003)
25 Feb 2020 25 Mar 2020
5 Asian Development Bank LOAN-3724 MYA: Climate-Friendly Agribusiness Value Chains Sector Project - CS-09 Capacity Building and
Climate Smart Agriculture Training Consultants (48409-003)
19 Feb 2020 20 Mar 2020
6 World Bank Group Harmonized Methods and Tools for Assessment of Mismanaged Plastic Waste and Plastic Leakage to the
Environment in the ASEAN Region
06 Mar 2020 11 Mar 2020
7 World Bank Group Natural Hazard Assessment for the Reconstruction of Critical Transport Infrastructure 06 Mar 2020 23 Mar 2020
Upcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
PwC
Tender Opportunities in Myanmar (cont’d)
24PwC Myanmar Weekly Business Intelligence
Source: World Bank Group, Asian Development Bank, Consult Myanmar
No Organisation Title Publication Date Closing Date
8 Ministry of Electricity and
Energy
National Electrification Project (NEP) – Installation of Distribution Lines and Transformers for Ayeyarwady, Mon
and Bago (West)
06 Mar 2020 06 Apr 2020
9 Ministry of Planning
Finance and Industry
Expression of Interest sought for Private Sector Participation in Myingyan Steel Mill 21 Feb 2020 10 Mar 2020
10 Ministry of Agriculture,
Livestock and Irrigation
Consulting Services for Capacity Strengthening for Integrated Water Resources Management (IWRM) 20 Feb 2020 17 Mar 2020
11 Ministry of Electricity and
Energy
National Electrification Project (NEP) – Installation of Distribution Lines and Transformers for Shan (South), Shan
(North), Shan (East) & Bago (East)
13 Feb 2020 16 Mar 2020
12 Ministry of Electricity and
Energy
National Electrification Project (NEP), Funding: Italian Soft Loan – Supply, Installation and Maintenance of Solar
PV Systems for Households and Public Facilities
11 Feb 2020 26 Mar 2020
Upcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
MIC Permitted Projects
25
8 March 2020
PwC
MIC Permitted Projects – Meeting (3/2020)
26PwC Myanmar Weekly Business Intelligence
No Name of Company Type of Investment Form of Investment
1New Hope (Mandalay) Co., Ltd
Production, processing and marketing of all kinds of poultry feeds, animal
feeds, shrimp feeds and fish feedsWholly Foreign owned
2SMM Shwe Myanmar Beverages Co., Ltd Production and sales of food grade ethanol and Co2 Gas Wholly Myanmar owned
3Adonia Footwear Co., Ltd (HK 100%) Manufacturing of all kinds of sport shoes on CMP basis Wholly Foreign owned
4Glamoroso Apparel (Myanmar) Co., Ltd Manufacturing of garment on CMP basis Wholly Foreign owned
5Myanmar SWM Motor Co., Ltd Assembling, manufacturing, sales of motor vehicles and after sale services Wholly Myanmar owned
6Allin Pwint Construction Co., Ltd Hotel service Myanmar Investment
7Vivekananda international Co., Ltd (Malaysia) Higher education services Joint Venture
Source: DICA
Upcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
Upcoming Events
27
8 March 2020
PwC
Upcoming Events
28PwC Myanmar Weekly Business Intelligence
Source: 10times.com, go-Myanmar.com
No Date Location Name of Event Sector Focus Points
1 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.”
2 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.”
3 12-14 May 2020 Yangon AAPG/EAGE Myanmar Oil & Gas Conference Power and Energy “AAPG/EAGE Myanmar Oil & Gas Conference will provide the
opportunity to understand the significant progress made over the last 16
months and network and share experiences with colleagues. It will cover
areas like Regional Geology & Tectonic Evolution, Depositional Systems
From Source to Sink, Petroleum Systems and Plays, Risk
reduction/management, and Innovation and Emerging Technologies.”
4 20-21 May 2020 Yangon Myanmar Power Development Summit Power and Energy “With a population of around 60 million, Myanmar ranks the lowest in
terms of electrification rate in the ASEAN countries as less than 40% of
its populations have access to electricity. The MPDS is going to invite
around 200 senior representatives from government, power producers
and utilities, investors, banks, law firms and suppliers to discuss the latest
development of Myanmar power industry and share insights into its future
prospects in an quickly evolving global energy mix.”
Upcoming Events MIC Permitted ProjectsTender OpportunitiesPolicy and Regulation InfrastructureFinancial and Business
8 March 2020
PwC
PwC Myanmar
29PwC Myanmar Weekly Business Intelligence
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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
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PwC Myanmar Weekly Business Intelligence PublicationFor further information please contact:
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