PWC MYANMAR WEEKLY BUSINESS INTELLIGENCE - ISSUE NO. 247 - 10 JANUARY 2021
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PwC Myanmar Weekly Business Intelligence Issue No. 247 10 January 2021
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
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10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 2
PwC Myanmar Weekly Business Intelligence
MIC
Financial and Policy and Tender Upcoming
Issue - 247, 10 Jan 2021 Business
Infrastructure
Regulation Opportunities
Permitted
Events
Projects
Infrastructure
Infrastructure
Highlights
• “Central Bank of Myanmar (CBM) on January 6 issued a subsidiary license to state-owned
Transport
Industrial Bank of Korea, making it the second bank to officially open a subsidiary branch in the
country.” • India-Myanmar friendship road repairs in the works
• “The Myanmar government is expecting a 6 percent rate of growth in fiscal 20-2021, according to • Experts warn of backlash against Chinese infrastructure projects in Myanmar
the budget statement released by the Ministry of Planning, Finance and Industry.” • Local car prices turn volatile as online market for govt car import permits emerges
• “Myanmar is seeking donations from the public to supplement an initial US$251 million (331.28 Energy
billion kyats) earmarked by the government to fund the purchase of COVID-19 vaccines, according
to the Ministry of Planning, Finance and Industry (MOPFI).” • China-backed solar projects to be completed by April
• “29 solar power projects now being implemented by the Chinese in Myanmar will be completed in • Myanmar set for more than $1 billion of upstream investment
April”
Real Estate
Financial and Business • Yangon govt to build 6000 residential units for squatters
• Myanmar govt takes steps to rein in controversial China-backed gambling hub in Karen
• Industrial Bank of Korea receives licence to open subsidiary in Myanmar State
• Central Bank of Myanmar issues remittance licences to more local companies • New Waibargi Hospital slated for completion in 2022
• Myanmar govt launches insurance for workers employed in Thailand Other Infra
• Myanmar targets 6% economic growth in 2021 • Myanmar, US to cooperate in digital economy development
• Kirin to continue profit denial to Myanmar military conglomerate • Myanmar to further restructure, invest in education system
Policy and Regulation
My
• Myanmar appeals to public to help fund purchase of COVID-19 vaccines
• Myanmar orders 30 million COVID-19 vaccine doses from India
• State Counsellor renews call for charter change
• Myanmar’s Daw Aung San Suu Kyi unveils ‘New Peace Architecture’ policy
10 January 2021
• Yangon plans for ‘third wave’: chief minister
PwC 3
Financial and Business
10 January 2021
4
Financial and Business
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Industrial Bank of Korea receives licence to open Myanmar aviation sector expected to become
subsidiary in Myanmar profitable, but more pain ahead first
08 Jan 2021 27 Jan 2020
Central Bank of Myanmar (CBM) on January 6 the local banks under the Financial Institutions Myanmar’s aviation industry is betting on a more tourist attractions in the future,” U Kyaw Nyein.
issued a subsidiary license to state-owned Law, the CBM said. profitable future with the number of airlines now Air KBZ has also been expanding. Last year, it
Industrial Bank of Korea, making it the second Thailand’s Siam Commercial Bank will soon reduced to half compared to 2017 and demand upgraded its fleet of planes and announced new
bank to officially open a subsidiary branch in the establish a subsidiary bank branch in Myanmar for domestic air travel expected to catch up with destinations to Dawei , Kaw Thaung , Myeik,
country. and will also receive a license from the CBM. supply. However, they will have to swallow more Sittwe, Kyaingtong, Hkamti and Loikaw. its sister
Licenses will be issued to a total of seven Similarly, Mega International Commercial Bank losses in the short term before things get better. airline, Myanmar Airways International, added a
qualified foreign banks, from which capital Co., Ltd, Cathay United Bank and Bank of China There are currently five airlines in Myanmar, new Airbus A319 to its fleet, expanding its
inflows totalling US$1 billion is expected. will also receive licenses to open subsidiary down from ten three years ago. But even though capacity by 144 passengers.
The seven foreign banks eligible for licenses banks before the end of this month. there are fewer players now in the market, the Tanes Kumar, commercial director for Air KBZ,
were selected in April last year. Three subsidiary volume of passengers flying domestic remains said even though the new routes are not yet
licenses and four foreign bank branch licenses below three million, according to government profitable, the main aim of adding new
will be issued. Capital investments for the data. destinations is to expand the airline’s network
opening of branches must be at least At those levels, demand is not sufficient to cover and connectivity. “This gives passengers more
US$75million and US$100million if it is a the industry’s losses, U Kyaw Nyein, CEO of options and allows employees to learn new skills
subsidiary branch. Golden Myanmar Airlines (GMA), told The for more expansion in the future,” he said.
The first subsidiary license was granted to Myanmar Times in a recent interview.
another Korean bank, KB Kookmin Bank, late But profitability is possible in the years ahead,
last year. The second has now been issued to making it a good time for the remaining airlines to Source: Myanmar Times
IBK Myanmar Ltd, which is a subsidiary of the accelerate their plans for expansion to capitalise
https://www.mmtimes.com/news/myanma
Industrial Bank of Korea on future demand, according to a 2019 report by
r-aviation-sector-expected-become-
To start operating, preparations like buildings, the Centre for Asia Pacific Aviation.
technology and appointment of staff must be Last year, GMA took delivery of a new aircraft, profitable-more-pain-ahead-first.html
carried out within nine months. A license is given taking its current fleet of ATR-72s to three. “With
out if this criterion is fulfilled. Ten more subsidiary Source: Myanmar Times the additional seats, we can now fly daily
bank branches can be opened up, said CBM. https://www.mmtimes.com/news/industrial-bank- compared to alternate days before. We will also
IBK Myanmar will now be able to operate a korea-receives-licence-open-subsidiary- extend our destinations to include more flights to
commercial banking business and compete with myanmar.html Dawei and Kaw Thaung, which could be potential
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 5
Financial and Business
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Central Bank of Myanmar issues remittance licences to Myanmar govt launches insurance for workers
more local companies employed in Thailand
08 Jan 2021 07 Jan 2021
The Central Bank of Myanmar (CBM) has issued changers, which is safer and cheaper. State-owned Myanmar Insurance Enterprise
remittance licenses to two Myanmar-registered Money remittance will also be faster and with (MIE) has launched a Travel and Health
companies, permitting them to handle cross more licenses issued, people will be able to Insurance (Thailand) service to cater to the
border money transfers, according to its transfer money into Myanmar from overseas needs of Myanmar workers employed in
statement on January 6. more efficiently. Thailand.
City Express Myanmar and Money King were There are many applicants for the remittance Thailand has imposed tougher travel restrictions
granted remittance licenses on January 5. license and those who comply with the on their visas due to the ongoing COVID-19
The licenses, issued with the aim of discouraging regulations will be granted with licenses, said pandemic. This includes the requisite of a health
illegal retail cross border transfers, had been CBM vice governor U Soe Min. insurance plan of US$100,000 with at least six
issued to Top Shine Money Changer & Gold In October last year, Myanmar’s Kanbawza months validity.
Trading, OK Money, Wakhema Money Changer, (KBZ) Bank and Malaysia-based cross-border The Myanmar government also plans to resume
Ok Zune and 2C2P in November. payments provider Tranglo also formed a flights to their Southeast Asian neighbour, as
The CBM said remittance services should only remittance partnership to facilitate inbound such MIE has launched their Travel and Health
be made available to individuals living and money transfers directly into the accounts of KBZ Insurance (Thailand) service to facilitate the visa
working abroad. Those transferring money for Bank customers. application process for those travelling to
trade and business purposes should do so via The service, which has been approved by the Thailand for scholarship programmes, business
official banks and not from this channel, the CBM CBM, allows Myanmar citizens working in and work.
said. Singapore, Malaysia and South Korea to send The company also plans to provide services
To qualify for the remittance license, applicants money home more cheaply and efficiently where they can underwrite migrant workers in
must be a registered company and open a without the need to go through traditional or groups.
deposit account with a minimum of K100 million, informal means of remitting money, which can be Insurers will have to pay a premium fee in US
officially earned and taxed, at a bank which has a expensive, troublesome and risky. dollars, and a 10 percent discount will be given to
license for foreign currency management. the first 100 customers starting from January 5.
Currently, the majority of Myanmar workers Source: Myanmar Times Source: Myanmar Times
overseas transfer money home via illegal Hundis. https://www.mmtimes.com/news/central-bank- https://www.mmtimes.com/news/myanmar-govt-
Now, they will be able to officially remit funds into myanmar-issues-remittance-licences-more-local- launches-insurance-workers-employed-
Myanmar via licensed banks and money companies.html thailand.html
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 6
Financial and Business
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Myanmar targets 6% economic growth in 2021 Kirin to continue profit denial to Myanmar military
conglomerate
06 Jan 2021 07 Jan 2021
The Myanmar government is expecting a 6 U Maung Maung Lay, vice chair of the Union of Japanese beverage giant Kirin says its probe into In response to pressure from human rights
percent rate of growth in fiscal 20-2021, Myanmar Federation of Chamber of Commerce its Myanmar partner’s military connections ended groups, the company in November suspended
according to the budget statement released by and Industries, said “profitable crops should be inconclusively because access to information paying profits from Myanmar Brewery and
the Ministry of Planning, Finance and Industry. grown and their costs kept low. We should create was denied. However, it said it would not resume Mandalay Brewery to Kirin, MEHL and other
The ministry has set growth targets of 2.6pc in markets for the sellers, and we also need to dividend payments from beer profits to the shareholders.
the farming sector, 6.5pc in the industrial sector, produce value-added products,” he said. military-owned Myanma Economic Holdings Kirin said it will provide an update on the
and 7.4pc in the services sector for the year. He added that more focus should be channeled Public Company (MEHL). company’s plans by the end of April.
The government stated that profitable crops to sectors like fisheries. “Currently, the marine Last year, Kirin hired Deloitte Tohmatsu Financial Kirin held 51 percent of both Myanmar Brewery
which conform to the country's climate, new industry has begun to enjoy growth. So, we need Advisory to conduct an independent review of the and Mandalay Brewery, with MEHL holding the
farming methods, plans to reduce crop wastage to expand into new export markets. The financial and governance structures of MEHL rest, said the United Nations independent
during the monsoon floods, exploration of oil and government should cooperate with other after it faced international condemnation for its international fact-finding mission on Myanmar in
gas, and other work plans are expected to offset organisations in that move,” he said. partnership with Myanmar’s military amid August 2019.
losses made in manufacturing and by micro, accusations of genocide against the Rohingya. The report warned that any foreign business
small and medium enterprises in the country. The review aimed to determine the destination of activity involving Myanmar’s military and its
Economists said focusing on sectors like profits from joint ventures Myanmar Brewery enterprises posed a high risk of contributing to or
agriculture to generate growth is a good strategy. Limited and Mandalay Brewery Limited. being linked to violations of human rights law.
Myanmar's garment sector has been hit hard by Kirin Holdings Company Limited on Thursday The report also warned that at a minimum,
the prolonged outbreak of COVID-19, which has said Deloitte’s assessment was inconclusive foreign companies were boosting military
left thousands of workers unemployed. So, the because it was unable to access sufficient finances.
government should consider prioritising the information to make “a definitive determination”. Kirin announced a review of its operations in
agricultural sector, said economist U Min Khin. It said it is wholly unacceptable for any proceeds Myanmar in February last year following
"According to the current economic index, we from its joint ventures in Myanmar to be used for allegations by the UN mission’s report.
can say the country saw some growth in its military purposes, which is a fundamental
economy last year, but this was then affected by condition of the joint-venture agreement. Source: The Irrawaddy
the outbreak of COVID-19. So, the government Source: Myanmar Times It said the suspension of beer dividend payments https://www.irrawaddy.com/news/burma/kirin-
should prioritise the resumption of businesses in https://www.mmtimes.com/news/myanmar- to Kirin and the military-owned company would continue-profit-denial-myanmar-military-
the country," he said. targets-6pc-economic-growth-2021.html continue. conglomerate.html
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 7
Infrastructure
10 January 2021
8Infrastructure Transport
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
India-Myanmar friendship road repairs in the works Myanmar aviation sector expected to become
profitable, but more pain ahead first
07 Jan 2021 27 Jan 2020
Plans are in place to repair 69 bridges that are Ye-U (Maha Maing-Kalaywa-Ye-U road) is being Myanmar’s aviation industry is betting on a more tourist attractions in the future,” U Kyaw Nyein.
on the Kalay to Tamu border road. renovated for cargo trucks and passenger buses profitable future with the number of airlines now Air KBZ has also been expanding. Last year, it
Amyotha Hluttaw MP U Ko Ko Naing said, in to travel on via the Maha Myaing road, he said. reduced to half compared to 2017 and demand upgraded its fleet of planes and announced new
addition to the bridges, some portions of the for domestic air travel expected to catch up with destinations to Dawei , Kaw Thaung , Myeik,
Kalay-Kalaywa road will also be upgraded. supply. However, they will have to swallow more Sittwe, Kyaingtong, Hkamti and Loikaw. its sister
“One Indian firm had won the tender to repair 69 losses in the short term before things get better. airline, Myanmar Airways International, added a
bridges on the India-Myanmar friendship road There are currently five airlines in Myanmar, new Airbus A319 to its fleet, expanding its
previously but the award was revoked as they down from ten three years ago. But even though capacity by 144 passengers.
were not in line with tender terms and there are fewer players now in the market, the Tanes Kumar, commercial director for Air KBZ,
conditions,” he said. volume of passengers flying domestic remains said even though the new routes are not yet
“The Indian government has arranged to call for below three million, according to government profitable, the main aim of adding new
a new tender. The Myanmar Ministry of data. destinations is to expand the airline’s network
Construction will prepare (for this). The Hluttaw is At those levels, demand is not sufficient to cover and connectivity. “This gives passengers more
committed to upgrading the Kalay-Kalaywa road. the industry’s losses, U Kyaw Nyein, CEO of options and allows employees to learn new skills
The process has begun,” he added. Golden Myanmar Airlines (GMA), told The for more expansion in the future,” he said.
The Kalaywa-Yargyi road on the Myanmar-India Myanmar Times in a recent interview.
border trade route is the shortest portion with 115 But profitability is possible in the years ahead,
miles. making it a good time for the remaining airlines to Source: Myanmar Times
Constructed in 2000, the road crosses 175 accelerate their plans for expansion to capitalise https://www.mmtimes.com/news/myanmar-
bridges and 183 culverts. It was open to public on future demand, according to a 2019 report by aviation-sector-expected-become-profitable-
use in 2004 but has deteriorated due to the rainy the Centre for Asia Pacific Aviation. more-pain-ahead-first.html
season and trucks no longer run on it. Last year, GMA took delivery of a new aircraft,
India’s IMT Expressway Co. is expected to taking its current fleet of ATR-72s to three. “With
complete heavy maintenance works on the road the additional seats, we can now fly daily
by 2021, said an official from the firm. Source: Myanmar Times compared to alternate days before. We will also
While the Kalaywa-Yargyi road is being https://www.mmtimes.com/news/india-myanmar- extend our destinations to include more flights to
upgraded, a 165-mile short cut from Kalaywa to friendship-road-repairs-works.html Dawei and Kaw Thaung, which could be potential
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 9Infrastructure Transport
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Experts warn of backlash against Chinese Local car prices turn volatile as online market for govt
infrastructure projects in Myanmar car import permits emerges
07 Jan 2021 05 Jan 2021
With China’s ambitious backbone infrastructure The CMEC is a part of Chinese President Xi Prices for semi-knocked down (SKD) cars perks in December 2020. Government
projects set to get off the ground this year in Jinping’s ambitious grand infrastructure plan for assembled in Myanmar have declined during employees aged 57 years (three years before
Myanmar, mostly in the ethnic states, the region, the Belt and Road Initiative (BRI). COVID-19. While this was due to a drop in retirement age) on October 1, 2020 with at least
environmentalists and local observers warn that China has proposed nearly three dozen projects demand due to travel restrictions and the 25 years in service are entitled to the civil servant
the National League for Democracy-led (NLD) including strategic infrastructure projects such as suspension of initial vehicle registrations to avoid car permit scheme which can be applied on a
government will face severe public resistance if it the Kyaukphyu Special Economic Zone (SEZ) in physical crowds at the Road Transport yearly basis. The car permits are given out based
keeps failing to address a lack of transparency Rakhine, which will give China access to the Administration Department’s offices, one other on ranks: director generals in the civil service can
surrounding the projects, and to engage with Indian Ocean, a New City project in Myanmar’s reason why sales have stalled is the issuance of import cars worth K15 million, K8 million for
local communities. commercial capital, and the Muse-Mandalay car import permits to government employees. deputy director generals, K6 million for directors
The environmentalists and local observers said railway project connecting two economic centers “Since the government employees have received and K1.5million for assistant directors.
locals’ objections to the projects will be one of in Myanmar with Kunming, the capital of Yunnan car import permits, the prices of SKD cars have Demand for SKD cars - that is, those assembled
the biggest challenges faced by the NLD province in southwestern China. fallen a lot. Some of the SKD brands have been by manufacturers with local facilities - rose when
government in its upcoming term. The China- Though the government in Naypyitaw has signed forced to reduce their prices to lure buyers. It’s a the government in 2018 permitted only left-hand
backed projects are hugely unpopular across the agreements to implement China-backed projects, buyers’ market now,” said Ko Aung Tun, a car drive vehicles to be imported. Since 2018, car
country, especially in the ethnic states, due to the local residents have received little information importer. import volumes have dropped as buyers’ options
long, troubled legacy of the former military junta’s about them, fueling growing concern among the Since they were made available, some importers became limited to left-hand drives.
extraction of natural resources without public public during the past few years, especially have purchased the car import permits from But now that there is a market for car import
engagement or consultation. regarding the social and environmental effects of government servants at between K1.5million and permits, SKD traders are lowering their prices to
U Win Myo Thu, the chairperson of the Green the projects, U Win Myo Thu said. K15 million, car importers said. “Although be more competitive. “For example, the
Motherland Development Association and Myanmar joined the BRI in 2018, agreeing with government staff are given car import permits at European and Korean cars enter the market at
director of EcoDev Myanmar, one of the China to establish the estimated 1,700-km-long lower tax rates, the sale of permits can be seen K40 million. So, the locally produced cars cannot
country’s leading environmental organizations, CMEC, which will connect Kunming with in the market. There is an online market for car be priced at those levels anymore. They have to
told The Irrawaddy that lack of transparency and Mandalay in central Myanmar, permits depending on the CIF (Cost, Insurance reduce the price," said Ko Aung Tun.
failure to engage with locals were the biggest Source: The Irrawaddy and Freight) and rank of the permit," said U Sein Source: Myanmar Times
weaknesses shown by the NLD government https://www.irrawaddy.com/news/burma/experts- Lwin, another car importer. https://www.mmtimes.com/news/local-car-prices-
when handling China-Myanmar Economic warn-backlash-chinese-infrastructure-projects- The government granted car import permits to turn-volatile-online-market-govt-car-import-
Corridor (CMEC) projects during its first term. myanmar.html some 7000 civil servants as part of their job permits-emerges.html
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 10Infrastructure Energy
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
China-backed solar projects to be completed by April Grab says it pumped $100M into Myanmar in
four years
05 Jan 2021 12 Feb 2020
29 solar power projects now being implemented Ride-sharing company Grab has invested over across the country this year, Toh said. GrabFood
by the Chinese in Myanmar will be completed in US$100 million (K143.5 billion) in Myanmar in will be launched for local restaurants and
April. the past four years to strengthen its position on transportation partners in Mandalay this year.
The solar power projects are expected to the local taxi market, a senior company official “Although food delivery is increasing locally, it
generate more than 1000-megawatts of said Tuesday. still lags behind other countries. We have many
electricity when complete and be able to Cindy Toh, country manager for Grab, said the opportunities,” said U Myat Kaung Min, head of
distribute power to the national grid, said U Zaw company will continue investing to further GrabFood Myanmar.
Moe Win, senior engineer at state-owned Electric improve the quality of its service in Myanmar. Grab For Good will be launched in Myanmar
Power Generation Enterprise. “Grab will emphasise service quality and safety, soon.
The projects are being carried out by the not only technology,” she told a briefing. “We will In 2018, Grab launched its Grab Thone Bane
Chinese under Independent Power continue investing in expansion and partnerships (three-wheeler) service in Bagan and Mandalay
Producer/Build, Operate, Own arrangements and to better the platform and expand the city, and Grab TaxiPlus service.
must be completed within 180 days of receiving ecosystem.” More than 166 million people in 339 cities in
approval from the Myanmar government. The Grab launched its service in Myanmar in July Myanmar, Vietnam, the Philippines, Thailand,
tender was first announced in May last year and 2017, and has since introduced Grab Taxi Call Cambodia, Malaysia, Singapore and Indonesia
the winners made known in September. Most of service, Premium Rentals (Beat), and Grab have downloaded the Grab app on their mobile
the winners were Chinese companies. Food. phones. – Translated
The bidding price by the Chinese was lower than The company’s taxi service is popular and
the industry’s expectations, at US$0.0422 per experiencing an increase of 10 percent in daily
unit. The average bidding price was $0.0508. rides in 2019 from the previous year, and adding
“According to the terms and conditions of the more than 196,000 more precise location points
tender, we fix a duration of six months after in the Grab application.
granting the letter of authorisation. We also The number of businesses using Grab for
urged the companies to meet the deadline, which Business doubled in 2019, and the most popular Source: Myanmar Times
is set for summer 2021,” said U Zaw Moe Win. Source: Myanmar Times destinations for rides were Myanmar Plaza, https://www.mmtimes.com/news/myanmar-
https://www.mmtimes.com/news/china-backed- Junction City, and Yangon Airport. aviation-sector-expected-become-profitable-
solar-projects-be-completed-april.html Grab will expand its services to other key cities more-pain-ahead-first.html
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 11Infrastructure Energy
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Myanmar set for more than $1 billion of upstream
investment
23 Dec 2020
With Myanmar’s general elections in the rearview development spending could reach over $1.1
mirror, upstream development expenditure could billion in 2023, nearly four times as much as
more than double to over $1 billion by 2023 estimated for 2021, data from Rystad, an energy
compared to this year’s spend. consultancy shows.
Myanmar’s ruling National League for However, this projection is largely dependent on
Democracy (NLD), led by Aung San Suu Kyi, a Woodside Energy and Total sanctioning their
Nobel Peace laureate, scored a resounding multibillion-dollar A-6 project, Myanmar’s first
victory in last month’s general election, the ultradeep-water natural gas field. Other key
second since the military began to withdraw from projects expected to be under way in the mid-
civilian politics in 2011. term are Posco International’s Shwe Phase 3
“The NLD victory generally means continuity in and PTTEP’s Aung Sinkha Block M3
Myanmar’s upstream sector. While some development, Readul Islam, an Asia upstream
personnel in government may change, overall specialist at Rystad Energy, told Energy Voice.
approaches will continue to be broadly the same. PTTEP’s ongoing development at Zawtika should
This is good news for investors in oil and gas, also ensure some spending, he added.
who are approaching with long time horizons,” New upstream developments will be crucial for
Jeremy Mullins, Myanmar country director of Myanmar as mature legacy offshore fields are
Vriens, a government affairs and political risk reaching the end of their life. The country’s
consultancy, told Energy Voice. attempts to expand its upstream – which holds
“Negotiations regarding issues such as PSC’s some of Asia’s last frontier exploration acreage
will be able to continue relatively uninterrupted, and was previously off limits to most Western
and on a broader level, the successful execution companies due to international sanctions – have
of the election will instill further confidence in the not been a success as was expected
country for potential investors,” Jordon Zele, Source: Energy Voice
country director of consultancy Frontier Myanmar https://www.energyvoice.com/oilandgas/asia/expl
Research, told Energy Voice. oration-production-asia/287962/myanmar-1bn-
As a result of the political continuity, upstream upstream-investment/
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 12Infrastructure Real Estate
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Yangon govt to build 6000 residential units for Grab says it pumped $100M into Myanmar in
squatters four years
06 Jan 2021 12 Feb 2020
The Yangon Region Government is planning to repayments of K50,000 over five years. Ride-sharing company Grab has invested over across the country this year, Toh said. GrabFood
develop 6,000 residential units for squatters, at a The Yangon City Development Committee US$100 million (K143.5 billion) in Myanmar in will be launched for local restaurants and
cost K3 million for each tenant. The social (YCDC) and other departments have worked on the past four years to strengthen its position on transportation partners in Mandalay this year.
welfare organisation Pyo May Eain will basic necessities like power and water supply. the local taxi market, a senior company official “Although food delivery is increasing locally, it
collaborate on the project, according to Pyo May Buyers are prohibited from selling, subletting or said Tuesday. still lags behind other countries. We have many
Eain’s Director Daw Van Lisa Aung. renting the properties. Cindy Toh, country manager for Grab, said the opportunities,” said U Myat Kaung Min, head of
“Over 1,000 units have already been developed company will continue investing to further GrabFood Myanmar.
in Shwe Pyi Thar, Dagon Myothit (East) and improve the quality of its service in Myanmar. Grab For Good will be launched in Myanmar
Dagon Myothit (South) townships. 1,000 units will “Grab will emphasise service quality and safety, soon.
be built in six townships and a further 5,000 will not only technology,” she told a briefing. “We will In 2018, Grab launched its Grab Thone Bane
be built afterwards,” she said. continue investing in expansion and partnerships (three-wheeler) service in Bagan and Mandalay
The completed housing units have been to better the platform and expand the city, and Grab TaxiPlus service.
transferred to residents, who are able to make ecosystem.” More than 166 million people in 339 cities in
monthly repayments to purchase. The units are Grab launched its service in Myanmar in July Myanmar, Vietnam, the Philippines, Thailand,
sold under a collateralised debt obligation system 2017, and has since introduced Grab Taxi Call Cambodia, Malaysia, Singapore and Indonesia
for groups of ten people, and the payments have service, Premium Rentals (Beat), and Grab have downloaded the Grab app on their mobile
been in forbearance from October to December Food. phones. – Translated
2020 owing to COVID-19-related financial The company’s taxi service is popular and
problems. experiencing an increase of 10 percent in daily
Development works have currently been rides in 2019 from the previous year, and adding
suspended, and will resume at the end of more than 196,000 more precise location points
January. in the Grab application.
According to the project plans, small units of The number of businesses using Grab for
12tx35ft and 15x40ft are being constructed on Business doubled in 2019, and the most popular Source: Myanmar Times
30x50ft plots of land. Source: Myanmar Times destinations for rides were Myanmar Plaza, https://www.mmtimes.com/news/myanmar-
The highest price is K3 million for a unit, and https://www.mmtimes.com/news/yangon-govt- Junction City, and Yangon Airport. aviation-sector-expected-become-profitable-
buyers are expected to make monthly build-6000-residential-units-squatters.html Grab will expand its services to other key cities more-pain-ahead-first.html
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 13Infrastructure Real Estate
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Myanmar govt takes steps to rein in controversial New Waibargi Hospital slated for completion in 2022
China-backed gambling hub in Karen State
08 Jan 2021 08 Jan 2021
The Myanmar government has begun taking over the scale of construction and the growing The 100-bed Waibargi Hospital that is donated and healthcare of the Myanmar people. They
steps to tackle irregularities surrounding a influx of Chinese money as well as suspected by the Asia World Foundation (AWF) will take also provide rehabilitation programmes following
controversial China-backed city development illicit activity and local concerns about the social approximately 18 months to complete. disasters.
project near the Thai border in Karen State, impacts of casino businesses. The government Yangon Chief Minister U Phyo Min Thein There are only three special hospitals for
vowing that it will not only solve the existing launched a tribunal to investigate the project in attended the initiation ceremony of the hospital infectious diseases in Myanmar – Yangon
issues but also prevent similar problems from June last year. on January 5 where he pointed out the need for Waibargi, Mandalay Kandaw Nadi and Nay Pyi
occurring in the future. From August 2019 to October 2020, authorities more specialist hospitals to treat communicable Taw Hospital.
At a press briefing in Naypyitaw on Friday, from the Home Affairs Ministry and the army diseases in the country.
government spokesman U Zaw Htay said the conducted inspections on the ground in the area “Because of COVID-19, all nations have become
government in December issued instructions to five times and reported to the President’s Office, aware that they could face other pandemics in
relevant departments on actions to be taken U Zaw Htay said. the future. Myanmar also needs more specialist
regarding the Shwe Kokko New City project, The spokesman said the government had also hospitals for treating infectious diseases," he
which is run by the Karen State Border Guard drawn up standard operating procedures (SOPs) said.
Force (BGF)—a Myanmar military-backed armed for all projects in Myanmar’s border areas to Previously, there was only one hospital for
group led by Colonel Chit Thu—and Chinese solve the existing irregularities in Shwe Kokko infectious diseases in Waibargi. Now, we have
investors accused of operating illegal casino and to prevent similar problems from occurring in turned some into emergency hospitals, said the
activities in Cambodia and the Philippines. the future. chief minister.
U Zaw Htay said the government had instructed U Zaw Htay said that, based on the law, it had “As long as there are mutations of the virus,
the departments to carry out measures to ensure been decided that certain project should be more training will have to be provided and better
that development activities do not affect the taking action against or abolished, while some preparations made to treat patients in the
stability of the project area. The government projects would be adjusted to bring them in line country,” he added.
spokesman said the issues surrounding Shwe with existing rules and regulations. The Waibargi Hospital will be constructed and
Kokko are complex and sensitive. donated by AWF in an estimated 18-month
Known as “China Town”, the US$15-billion Source: The Irrawaddy period. This includes a construction period of one
(19.92-trillion-kyat) project has been the subject https://www.irrawaddy.com/news/burma/myanma year. Source: Myanmar Times
of criticism for more than one year due to a lack r-govt-takes-steps-rein-controversial-china- AWF is a parahita (charity) organisation https://www.mmtimes.com/news/new-waibargi-
of transparency, land confiscations, confusion backed-gambling-hub-karen-state.html committed to improving the social life, health, hospital-slated-completion-2022.html
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 14Infrastructure Other Infra
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Myanmar, US to cooperate in digital economy Grab says it pumped $100M into Myanmar in
development four years
08 Jan 2021 12 Feb 2020
The Union of Myanmar Federation of Chambers compared to the past," he said. Ride-sharing company Grab has invested over across the country this year, Toh said. GrabFood
of Commerce and Industry (UMFCCI) and US US$100 million (K143.5 billion) in Myanmar in will be launched for local restaurants and
Information and Communication Technology (US the past four years to strengthen its position on transportation partners in Mandalay this year.
ICT) Council for Myanmar will continue working the local taxi market, a senior company official “Although food delivery is increasing locally, it
together to develop Myanmar’s digital economy. said Tuesday. still lags behind other countries. We have many
The UMFCCI said the cooperation will ensure Cindy Toh, country manager for Grab, said the opportunities,” said U Myat Kaung Min, head of
Myanmar does not fall behind when it comes to company will continue investing to further GrabFood Myanmar.
the digital economy sector. improve the quality of its service in Myanmar. Grab For Good will be launched in Myanmar
“The development of our digital economy is “Grab will emphasise service quality and safety, soon.
important. We will feel the effects if we are left not only technology,” she told a briefing. “We will In 2018, Grab launched its Grab Thone Bane
behind by other countries. This is why we will continue investing in expansion and partnerships (three-wheeler) service in Bagan and Mandalay
cooperate with those who have already achieved to better the platform and expand the city, and Grab TaxiPlus service.
success. We established cooperation (with the ecosystem.” More than 166 million people in 339 cities in
US ICT Council for Myanmar) last year and this Grab launched its service in Myanmar in July Myanmar, Vietnam, the Philippines, Thailand,
is our second signing following the expiration of 2017, and has since introduced Grab Taxi Call Cambodia, Malaysia, Singapore and Indonesia
our initial one-year term,” said UMFCCI vice service, Premium Rentals (Beat), and Grab have downloaded the Grab app on their mobile
chair U Maung Maung Lay. Food. phones. – Translated
The USMFCCI and the US ICT Council for The company’s taxi service is popular and
Myanmar signed a new memorandum of experiencing an increase of 10 percent in daily
understanding (MoU) on January 5. rides in 2019 from the previous year, and adding
"We will cooperate in all sectors related to IT. more than 196,000 more precise location points
They will provide technical and financial in the Grab application.
assistance though it is still not known how much The number of businesses using Grab for
funding they will provide. We will implement Business doubled in 2019, and the most popular Source: Myanmar Times
(digital economy) for the industrial and education Source: Myanmar Times destinations for rides were Myanmar Plaza, https://www.mmtimes.com/news/myanmar-
sectors as well. The current Myanmar digital https://www.mmtimes.com/news/myanmar-us- Junction City, and Yangon Airport. aviation-sector-expected-become-profitable-
economy landscape has improved a lot cooperate-digital-economy-development.html Grab will expand its services to other key cities more-pain-ahead-first.html
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 15Infrastructure Other Infra
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Myanmar to further restructure, invest in education
system
06 Jan 2021
The Myanmar government wants to restructure Myanmar education. In September, just before
and raise investments in the existing education the 2020 election on November 8, autonomy was
system over the next five years so that it remains granted to 16 universities, including Yangon
compatible with modern day requirements, State University. U Thein Win, director general of the
Counsellor Daw Aung San Suu Kyi said in her Department of Higher Education, said the 16
New Year speech. universities will be allowed to include a masters’
As education plays a very crucial role in the department and syllabuses that are appropriate
development of our nation, a long-term plan to for each region and this can be drafted by each
invest in and ensure the sector stays relevant university.
must be implemented, she said, adding that He said the ministry would not interfere in the
more will be done to encourage more growth in management of the universities and teaching
private education in Myanmar. styles can be designed in line with the needs of
Education has also progressed online since the each region or state.
pandemic. Late last year, U Aung Min, Rector of In August 2018, Myanmar also permitted foreign
Mandalay's Yadanarbon University, said investments in private basic schools, technical,
academics had agreed on a ministry-supported vocational and training schools, higher education
plan for Myanmar universities and colleges to schools, subject-based schools and schools
begin offering online programmes for master’s designated by the government. The move was
degrees and doctorates. lauded as a positive step forward for local
For basic education, the MOE in 2020 students, who are now able to choose from more
established the Myanmar Digital Education international education options.
Platform, though scarce detail has been
provided. Meanwhile, private and international
schools have successfully launched e-learning
programmes and online classes complete with Source: Myanmar Times
projects, tests and assessments. https://www.mmtimes.com/news/myanmar-
There have also been some systemic changes in further-restructure-invest-education-system.html
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 16Policy and Regulation
10 January 2021
17Policy and Regulation
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Myanmar appeals to public to help fund purchase of Myanmar aviation sector expected to become
COVID-19 vaccines profitable, but more pain ahead first
06 Jan 2021 27 Jan 2020
Myanmar is seeking donations from the public to Delta Co Ltd, said on his Facebook account on Myanmar’s aviation industry is betting on a more tourist attractions in the future,” U Kyaw Nyein.
supplement an initial US$251 million (331.28 Tuesday evening that he had donated $1.5 profitable future with the number of airlines now Air KBZ has also been expanding. Last year, it
billion kyats) earmarked by the government to million to the government for the purchase of reduced to half compared to 2017 and demand upgraded its fleet of planes and announced new
fund the purchase of COVID-19 vaccines, COVID-19 vaccines. for domestic air travel expected to catch up with destinations to Dawei , Kaw Thaung , Myeik,
according to the Ministry of Planning, Finance Another tycoon, U Zaw Zaw, the chairman of the supply. However, they will have to swallow more Sittwe, Kyaingtong, Hkamti and Loikaw. its sister
and Industry (MOPFI). Ayeyarwady Foundation, who has already losses in the short term before things get better. airline, Myanmar Airways International, added a
On Tuesday, the MOPFI said in a statement that contributed more than $11 million to the country’s There are currently five airlines in Myanmar, new Airbus A319 to its fleet, expanding its
the Fund Management Sub-committee on the fight against the COVID-19 pandemic, down from ten three years ago. But even though capacity by 144 passengers.
Purchase of COVID-19 Vaccines had opened a announced on Wednesday that he had donated there are fewer players now in the market, the Tanes Kumar, commercial director for Air KBZ,
foreign currency account and a kyat account at 2 billion kyats ($1.5 million) to the government for volume of passengers flying domestic remains said even though the new routes are not yet
the Myanmar Economic Bank in Naypyitaw. the purchase of COVID-19 vaccines. below three million, according to government profitable, the main aim of adding new
The MOPFI said the foreign currency account According to the MOPFI, COVID-19 vaccines data. destinations is to expand the airline’s network
was opened with an initial deposit of $250 million cost around $2 per dose, and two doses are At those levels, demand is not sufficient to cover and connectivity. “This gives passengers more
and the Myanmar currency account was opened needed per person, putting the total cost per the industry’s losses, U Kyaw Nyein, CEO of options and allows employees to learn new skills
with 1 billion kyats ($750,000) from the state’s person at around $4. Golden Myanmar Airlines (GMA), told The for more expansion in the future,” he said.
coffers for use in purchasing COVID-19 In addition to the vaccine itself, storage and other Myanmar Times in a recent interview.
vaccines. logistics costs will be significant. But profitability is possible in the years ahead,
Any organizations or individuals, in Myanmar or Myanmar has also negotiated with the World making it a good time for the remaining airlines to Source: Myanmar Times
abroad, who want to contribute cash donations Bank, Asian Development Bank, Japan accelerate their plans for expansion to capitalise
https://www.mmtimes.com/news/myanma
toward the purchase of vaccines are invited to International Cooperation Agency and on future demand, according to a 2019 report by
r-aviation-sector-expected-become-
donate any amount of foreign currency or International Monetary Fund to secure more than the Centre for Asia Pacific Aviation.
Myanmar kyats into those accounts, according to $950 million to fund the purchase of COVID-19 Last year, GMA took delivery of a new aircraft, profitable-more-pain-ahead-first.html
the ministry’s statement. vaccines. taking its current fleet of ATR-72s to three. “With
Following the ministry’s invitation, tycoon U Chit Source: The Irrawaddy the additional seats, we can now fly daily
Khine, chairman of one of Myanmar’s biggest https://www.irrawaddy.com/news/myanmar- compared to alternate days before. We will also
conglomerates, Eden Group, which controls appeals-public-help-fund-purchase-covid-19- extend our destinations to include more flights to
Myanmar Apex Bank, Denko Trading and Gold vaccines.html Dawei and Kaw Thaung, which could be potential
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 18Policy and Regulation
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Myanmar orders 30 million COVID-19 vaccine doses State Counsellor renews call for charter change
from India
08 Jan 2021 04 Jan 2021
Myanmar has ordered 30 million doses of a stated that two state accounts, containing $250 State Counsellor Daw Aung San Suu Kyi changes in the charter need the support of the
COVID-19 vaccine from India that are due to million (332 billion kyats) and 1 billion kyats renewed her call for the amendments of the 2008 military.
arrive by February, according to the President’s ($750,000), were being used to purchase the Constitution that bestowed on the country’s Moreover, the military has complete control over
Office on Friday. vaccines. armed forces too much power, including full the security-related ministries, from the Interior
The Serum Institute of India, the world’s largest Anyone in Myanmar or abroad is invited to control over the security apparatus. Ministry, the Border Guard forces, and the
vaccine manufacturer, is producing the COVID- contribute in foreign currency or kyats to the The de facto Myanmar leader, who spent most of Defence Ministry, among others.
19 vaccine, called Covishield, that was accounts, the ministry added. the two decades of her life under arrest of the In the first quarter of 2020, the National League
developed by Oxford University and Following the ministry’s invitation, U Chit Khine, military junta, said changing the military- for Democracy (NLD)-dominated parliament
AstraZeneca. chairman of one of Myanmar’s biggest sponsored charter could hasten the achievement attempted but failed miserably to pass charter
U Zaw Htay, the President’s Office director- conglomerates, the Eden Group, donated $1.5 of sustainable peace in the country. amendments that would clip the powers of the
general, told the media that the government is million (1.9 billion kyats). "The amendment of the State Constitution is military.
planning to initially pay US$75 million (100 billion Another business chief, U Zaw Zaw, chairman of absolutely necessary for the emergence of a The country military chief, Senior General Min
kyats), half the amount for the vaccine order. the Ayeyarwady Foundation, who already democratic federal system which is the goal of Aung Hlaing, made clear that the military will not
He said the government has chosen the vaccine contributed more than $11 million to the country’s our peacemaking efforts,” she said in her New yet relinquish its political powers as the country
because it could be stored at 2-8°C, making it COVID-19 measures, donated a further 2 billion Year’s address. remains unstable amid threat from local armed
more suitable for Myanmar’s climate. kyats ($1.5 million) for vaccines. “We must strive with might and main for the groups and foreign forces.
State Counselor Daw Aung San Suu Kyi recently On Thursday, Myanmar’s military donated 1 emergence of the Constitution aligned with the The senior general, however, said that the
said health workers on the COVID-19 frontline billion kyats ($753,000) for vaccines. peace agreements, the long-term needs of the military establishment will support the
are the top priority to be vaccinated. The Daw Khin Kyi Foundation, which was country and the expectation of our people," she government’s efforts to achieve sustainable
Myanmar has more than 110,000 medical staff. established by Daw Aung San Suu Kyi, said it added. peace and development.
The country is also trying to buy COVID-19 has earmarked a donation of 10 million kyats Under the present constitution, enacted during “Only the eternal peace can create peace and
vaccines from the US, UK, Russia and China ($7,500) and it is accepting public donations. the rule of military strongman Than Shwe, 25 stability in the country and development for the
through diplomatic channels. percent of the members of the parliament are new generations,” Senior General Min Aung
On Tuesday, Myanmar invited people and Source: The Irrawaddy automatically allocated to military officers. Hlaing said in his New Year’s message.
organizations to donate to the government https://www.irrawaddy.com/specials/myanmar- Likewise, any charter amendment can only be Source: Myanmar Times
vaccine fund. covid-19/myanmar-orders-30-million-covid-19- passed with more than 75 percent approval of https://www.mmtimes.com/news/state-
The Ministry of Planning, Finance and Industry vaccine-doses-india.html the whole parliament. Thus, any successful counsellor-renews-call-charter-changes.html
10 January 2021
PwC PwC Myanmar Weekly Business Intelligence 19Policy and Regulation
Financial and Business Infrastructure Policy and Regulation Tender Opportunities MIC Permitted Projects Upcoming Events
Myanmar’s Daw Aung San Suu Kyi unveils ‘New Peace Yangon plans for ‘third wave’: chief minister
Architecture’ policy
05 Jan 2021 06 Jan 2021
Myanmar State Counselor Daw Aung San Suu be more effectively implemented. Two plans are being drafted to respond to a said.
Kyi has introduced a new approach to the With Myanmar set to mark the 75th anniversary possible “third wave” of COVID-19 infections, "We must continue to follow preventive
country’s peace process-—which she calls the of the Panglong Agreement in 2022, she said said U Phyo Min Thein, chief minister of Yangon measures to coexist with the virus, so we will
“New Peace Architecture”—designed to allow she hoped the country would soon see signs of Region. conduct campaigns in the region. If people wear
participation by political groups, civil society progress toward the establishment of a federal "If the third wave hits our country, we need to face masks, wash their hands and maintain
organizations and the public. union. make preparations. We are drawing up two plans social distance, we can revive the economy," he
In her New Year’s speech on Jan. 1, Daw Aung She said the Constitution must be amended to led by the Central Committee on Prevention, said.
San Suu Kyi said the new approach will seek a establish a democratic federal union. She called Control and Treatment of COVID-19," U Phyo Myanmar has extended its COVID-19 measures
balance between representation and for a Constitution that aligns with existing peace Min Thein said at a ceremony to launch until the end of January, although the number of
effectiveness, and that various points of view will agreements, the long-term needs of the country construction of the 100-bed Waibargi Hospital, infections has eased somewhat. Most
be taken into account as it is implemented. She and the expectations of the people. which was donated by the Asia World restaurants and tea shops are only allowed to
said the aim is to convince not only the “In two years, Myanmar celebrates the 75th Foundation. sell take-away food.
signatories to the Nationwide Ceasefire anniversary of its independence. The top priority "We will carry out COVID-19 prevention, control The authorities closed public places such as
Agreement (NCA), but also non-signatories to of the government this year is to shape the future and treatment of people infected with the virus. parks to prevent mass gatherings during the
come on board and cooperate. of the country. It is also a task for the people,” We will quarantine people, find positive cases at Christmas and New Year holidays. Parks across
Both formal and informal dialogues will be pivotal she said. quarantine centres and send them to hospitals," the city will be allowed to reopen next week.
to the peace process in the post-2020 period, During its first five-year term, the NLD he said.
said the leader of the ruling National League for government led by Daw Aung San Suu Kyi A faster-spreading mutation of COVID-19 has
Democracy (NLD). The government will prioritize managed to sign three parts of the Union Accord recently spread from the UK to Asian countries
implementation of the new approach over the with the 10 NCA signatories. The accord has via Europe, so Myanmar needs to be more
next five years, she said. been approved by the Union Parliament. vigilant, he added.
“We recognize the important role of public Myanmar has been making preparations since
participation [in the peace process]. This the virus broke out in Wuhan, China, in
depends on how much we can pave the way for Source: The Irrawaddy December 2019. The government has conducted
all stakeholders to participate,” she said, calling https://www.irrawaddy.com/news/burma/myanma COVID-19 prevention, control and treatment and Source: Myanmar Times
for changes to the frameworks, systems and rs-daw-aung-san-suu-kyi-unveils-new-peace- made efforts to ease the economic and social https://www.mmtimes.com/news/yangon-plans-
mechanisms of the peace process so that it can architecture-policy.html impact, particularly on low-income people, he third-wave-chief-minister.html
10 January 2021
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