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The better the question. The better the answer.�

The better the world works.

Will your legacy include Timor-Leste?

It’s time for purpose-led

companies to explore

investment and business

opportunities in the country

EY’s Timor-Leste Investment Guide

► Why?

► How?

► What?


Hadia negosiu iha mundo ne'e atu sai diak liu tan

Why?


Why?

► We believe in the value proposition:

► A young, persevering, tenacious people

► Natural resources (including mostly unscathed

landscapes)

► Access to regional and global markets

► A vast Timorese network outside the country:

► Young qualified talent + access to business

networks

► Competitive tax regime

► USD as currency


<24 yrs

Why?

We believe in the direction:

► A democratically-reinstated nation, hanging to

democracy as a source of progress

► A business-oriented Government, with a long term

vision of sustainable growth

► A coordinated, focused and ambitious Reform Plan

► A strong defense of gender equality, supporting the

role of women in society and in the economy


Why?

We believe in the moment:

► Robust track-record, with growing interest from

investors, but still presenting first-mover advantages

► Ongoing effort to modernize the public administration

to develop a business-enabling environment

► Continuous investment to grow institutional strength is

paving the way for stronger regional and global

economic integration


Why?

► In preparing the Guide:

► We provide our clients with better

insights on the opportunities

available

► We give added visibility to Timor-

Leste’s attractiveness factors,

increasing the potential for new

investments

► We are coherent with our

purpose of building a better

working world


How?

► Using EY’s experience in

Investment Location Advisory

Services:

► Supporting companies in their

quest for the most attractive

locations

► Working with Governments to

assess and promote

attractiveness


How?

► Desk research:

► Benchmarking other countries in the region

► Working with Timor-Leste’s Government:

► With ongoing support from TradeInvest Timor-Leste and MECAE

► Consulting other entities and Ministries involved in the preparation of

reforms that will impact the business environment

► Consulting with companies present in the market:

► Seeking testimonials from foreign investors already in the country or in the

process of settling in


Attractiveness Factors: Natural Resources

► Oil & Gas and other mineral resources

► Preserved natural landscapes

► Organic farming: coffee and other niche products

► Sea resources: fishing and aquiculture

► One of the youngest populations in the world


Attractiveness Factors: Pro-business strategy


Attractiveness Factors: Reform Program


Area of Reform Objective(s)

1 Land and property

registry

To secure ownership rights, enabling lending against

collateral and resulting in more private investment

2 Develop economic

infrastructure

Secure adequate supply of water, sanitation and

electricity; drive logistic efficiency in the transport of

people and goods

3 Labor Law and

workforce

qualification

To create an efficient labor market and match skills to

market needs

Attractiveness Factors: Reform Program


Area of Reform Objective(s)

4 Business

environment reform

To improve business competitiveness, improving the

country’s position in the Doing Business ranking

5 Tax Reform To secure additional tax collection while improving

budgetary allocation and spending

6 Private investment Provide adequate support of investors from the

investment promotion agency

7 Private sector

promotion To promote entrepreneurship and job creation

Attractiveness Factors: Tax regime

► Lowest corporate

income tax in

Southeast Asia

► Tax exemptions

available to

investors 0

5

10

15

20

25

30

35

Corporate Income Tax - % Benchmark ASEAN & Timor-Leste

Attractiveness Factors: Regional and Global integration

► ASEAN – persistency and investment

continue to pave the way to complete

accession program:

► The process alone is generating benefits for

businesses

► Full accession would added global visibility

► CPLP – full-fledged membership provides

privileged access to markets in 4

continents


622 m

2.6 tr

20

14

GDP

260 m

2.8 tr

20

13

GDP

AS

EA

N

CP

LP

Challenges


Challenges

► A lot is happening, simultaneously: keeping the pace of reforms will

be very demanding, requiring a strong project management effort

► The aspirations of the younger generations tend to evolve faster

than policies deliver results: they must be a part of the solution –

school enrollment incentives, vocational training, entrepreneurship

► Compliance may introduce complexity: investment-related policies

must be led by a focused and agile group, that never stops

listening to investors and that can actively champion their interests

before other public entities


Obrigado! Obrigadu! Thank you!

[email protected]

EY | Assurance | Tax | Transactions | Advisory

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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