1. Zaw Min Htwe CPRSouth6: ICT & Economy 9-10 December, 2011, Bangkok Yatanarpon Cyber City (Myanmar): Making it work

2. Introduction ICT Parks have proved a vital element for economic improvement in developing countries Yatanarpon Cyber City (YCC) was established, inviting local and foreign investments It is estimated that US $ 52 millions were invested for YCC establishment (Digital Review Asia-Pacific 2009-2010)

3. Why ? Are the incentives of YCC attractive ? Are the facilities of YCC adequate ? Are the human resources qualified enough ? Are the Foreign Investment Policy of Myanmar conducive or restricted ? Research Issue No Foreign Investments have been found yet as of early 2011

4. Presentation Outline Introduction (research issue & questions) Methodology Findings Policy Implications Conclusions

5. Methodology Primary Data - Questionnaires were distributed to 35 out of 50 selected companies in Myanmar Info-Tech (MICT Park); - Multiple Choices & Open type questions were used in the survey. For instance, - “What about the the availability of qualified HR ? (a) Highly Available & Qualified enough (b) Limited Available & Qualified Enough (c) Highly Available & Not Qualified (d) Limited Available & Not Qualified” - “What will be the challenges for foreign investors doing business at YCC ?” - “Do you have any plan to expand business in YCC ?”

6. Interviews with 5 local companies, currently operated business at YCC; 7 key persons from the Professional Associations, Implementing body and other successful companies Questions, For instance, - “What are the major reasons for expanding business in YCC ?” - “What are the major drawbacks of YCC ?” Secondary Data - Government official data from Central Statistical Organization 2009, Reports, Journals, Websites, Newspaper, and previous research Methodology: cont’d

7. Findings & Policy Implications 1. Incentives are not favourable to investors, particularly in tax incentive for IT related businesses. IncentivesQTSC (Vietnam) YCC (Myanmar) Corporate Income Tax10%30% Value Added TaxNO VAT0%-200% Source: Quang Trung Software City, Directorate of Investment & Company Administration, DICA Table 1 : Tax Incentives of QTSC and YCC  Desirable tax incentive programs should be introduced for ICT related foreign investments

8. Findings & Policy Implications: Cont’d 2. Facilities are adequate in terms of telecommunication and space availability but lack other facilities to facilitate One-Stop Services  Collaborative actions among the domestic and international Organizations should be practiced to facilitate One-Stop Services. FacilitiesQTSC (Vietnam)YCC (Myanmar) Telecommunication Broadband Internet, GSM, VOIP Broadband Internet, GSM, CDMA, VOIP Location & Space Availability HCMC & LimitedPOL & Abundant One-Stop Services Available at HCMCNot Yet Available - Obtaining the licensesYESNO - Logistical SupportsYESNO - BankingYESNO - Visa ApplicationYESNO Source: Quang Trung Software City, Yatanarpon Teleport Co., Ltd, and Survey Results

9. Findings & Policy Implications: Cont’d 3. Qualified Human Resources are limited; Institutions# of Graduates/Year Quality of Graduates Computer Universities7,469Not Industry Ready ICTTI (Japan Funded)160Industry Ready IMCEITS (India Funded)200Industry Ready Source: CSO 2009, University of Computer Studies, Yangon, and Survey Results  University-Industry collaboration programs should be introduced to produce more industry-ready HRs while taking advantage of low-labor cost

10. CountryAnnual IT Labor Wages (USD) China19,674 India13,592 Indonesia7,017 Myanmar1,200 – 8,400 Philippine8,816 Thailand21,117 They can be hired at low cost Table 3: Annual IT Labor Wages in some Asian Countries Source: ZDNet Asia IT salary benchmark 2010; Yatanarpon Teleport Co., Ltd; Survey Results Findings & Policy Implications: Cont’d

11. 4. Foreign Investment policies are conducive to some extents despite no investment in YCC Source: Central Statistical Organization 2009 Chart 1 : Foreign Investment in Myanmar (US$ in millions)

12. Sr SectorNo. Of Enterprises Total Investment (USD in Millions) 1Agriculture434.351 2Fishery25324.358 3Mining601395.886 4Oil and Gas883,357.478 5Manufacturing1541,628.896 6Power26,311.222 7Transport16313.272 8Hotel & Tourism441,049.561 9Real Estate191,056.453 10Industrial Estate3193.113 11Construction237.767 12Others623.686 TOTAL42315,726.043 Source: Central Statistical Organization 2009 Table 4: Total Foreign Investment by Industrial Sector as of March 31, 2009  Special adjustments, designed for IT development, need to be made. YCC should be entitled as Special IT Development Zone with supporting industries. Findings & Policy Implications: Cont’d

13. Conclusion Incentives offered by the YCC are not favourable for investors, particularly in tax system  Corporate Income Tax & VAT should be adjusted Facilities in terms of telecommunications and space availability are adequate but lack other facilities  Collaborative actions among the domestic and international organizations should be practiced to facilitate OSS Availability of Qualified Human Resources is limited  University-Industry collaboration programs should be introduced to produce more industry-ready HRs Foreign Investment policies are conducive to some extents despite no investment in YCC  Adjustments, specially designed for IT Development, need to be made while designating YCC as Special IT Development Zone along with supporting industries.

14. For further information and/or comments, please contact me at: zmhtwe@iuj.ac.jp Thank You !