Doing Business in Yangon 2018 Yangon Investment Forum 2018 Ong Chao Choon Managing Director PricewaterhouseCoopers Myanmar

Visible progress over the past 6 years Source: BMI Source: Ministry of hotels and tourism statistics Source: Colliers International Source: Colliers International Source: Myanmar Road Transport Administration Department 2

Myanmar grew at average of 7.2% over past 6 years Potential for greater upside? 3 new telco licence YSX opened Financial services sector reforms New MFIL Myanmar 13 foreign bank branch licenses issued US sanctions lifted New MIL and Companies Law Infrastructure development Source: IMF, YRG 3

A vote of confidence … twice over Reuters, 13 October 2017 ThaiBev acquires Myanmar distilleries as TPG exits Thai Beverage Public Co has acquired a combined 75 percent stake in two Myanmar distilleries in a deal worth $742 million, hoping to tap into growth in the country’s nascent spirits market. CNBC, 4 May 2017 Unilever thinks Myanmar could be the next Vietnam, announces joint venture Unilever is entering a joint venture with Europe & Asia Commercial (EAC) Ltd. in Myanmar in an effort to hedge a bigger foothold in the country, which boasts a population of approximately 54 million. The joint venture, which combines entities with combined annual sales of more than €100 million, will include manufacturing, marketing and distribution of home and personal care products in Myanmar. 4

Yangon grew at an average of 9.2% over the same period Yangon Region 7.4 million population 23% of Myanmar’s GDP Financial Centre Commercial Hub 85% of import/export Yangon Myanmar Source: IMF, YRG 5

While FDI slowed, it is still ahead of others in Southeast Asia Foreign Direct Investment in Myanmar by Fiscal Year Foreign Investment of Permitted Enterprises as of 31 January 2018 by country No. Country Investment (USD bn.) % of total amount 1 China 19.9 26.50% 2 Singapore 18.7 24.80% 3 Thailand 11.0 14.70% 4 Hong Kong 7.8 10.30% 5 UK 4.3 5.80% 6 South Korea 3.8 5.00% 7 Vietnam 2.1 2.80% 8 Malaysia 2.0 2.60% 9 Netherland 1.5 2.00% 10 Japan 0.8 1.00% 11 India 0.7 16 Others 2.6s 3.5% Total 75.3 100.0% Source: DICA Myanmar Foreign Director Investment in other countries (2016) Peer countries FDI (USD bn.) GDP (USD bn.) FDI per GDP Vietnam 12.6 205.3 6.1% Thailand 3.1 406.8 0.7% Bangladesh 2.5 221.4 1.1% Cambodia + Laos 3.3 35.9 9.2% Myanmar 6.6 58.5 11.3% Source: DICA Myanmar, World bank 6

Strong demographic advantage 70% of population will still be < 60 in 20 years’ time Myanmar population age pyramid, 2015 Male Female >70 60-69 50-59 40-49 30-39 20-29 10-19 0-9 Source: IMF 7

Challenges faced by investors Lack of reliable power supply Bureaucracy barriers Limited access to financing Aging and inadequate infrastructure Capacity of workforce Ethnic conflicts High land prices Tax collection leakages 1 Foreign Exchange depreciation and inflation 8

Power shortage is the single biggest impediment to industrialization Lowest per capita electricity consumption in ASEAN with electrification rate of 37.8 % Power capacity growth had not kept pace with economy Additional 3.3 GW capacity to be installed by 2021 Source: BMI, MOEE, World Bank 9

Yangon Economic Development Agency Overseas Promotions Holistic Vision + Economic Master Plan Promote Foreign Investments Grow Local Business International Branding 10

Doing Business in Yangon 2018 http://myanmar.pwc.com Doing Business in Yangon 2018 Ong Chao Choon Managing Director PricewaterhouseCoopers Myanmar 11