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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

11. Doing Business in Yangon 2018
Doing Business in Yangon 2018
Ong Chao Choon
Managing Director
PricewaterhouseCoopers
Myanmar 11