March 3rd | 2015

ECONOMY

Comments Invited on New Investment Law

Source: Eleven Journal (3rd march 2015)
The public is invited to offer input on a draft of the revised Myanmar Investment Law, which has been uploaded to the Directorate of
Investment and Company Administration (DICA) website. DICA is updating the current law with the assistance of the International
Finance Corporation. The draft has been written in English for international readers, and a Myanmar version will soon be available.
The draft incorporates the Myanmar Citizen Investment and Foreign Investment laws into one. Interested parties can get more
information on the DICA website at www.dica.gov.mm.x-aas.net/ and can submit comments and suggestions no later than March 16
by e-mail to policylegal.dica@gmail.com. Meanwhile, the Myanmar Companies Act has been under revision since October 2012 with
the assistance of the Asia Development Bank. The Act was introduced in 1914.

Myanmar Kyat weakening against US dollar

Source: Eleven Journal (26th Feb 2015)
The Myanmar kyat hit Ks1, 041 against the US dollar on Wednesday, sharply above the official rate of 1,027, according to money
exchangers. The Central Bank of Myanmars official rate for the day was Ks1, 027 per dollar, but the currency was actually sold at
1,041. Buying rate was 1,038. The dollar has moved up against the local currency compared to the rate in January. Since the beginning
of this year, the official rate was at 1,025 per dollar until January 21 when the greenback weakened slightly to 1,024. From January 22
to February 9, the official rate was 1,025 per dollar. During February 10-24, it was 1,026. The rate was adjusted upward to $1,027 on
Wednesday and it stayed unchanged today. At foreign exchange booths, the buying rate of dollar was 1,028 and the selling rate was
1,026 in the first week of February. In the second week, the rates went up to 1,033/1,030.

RETAIL

Bagan night mall planned

Source: Eleven Journal (27th Feb 2015)
A night mall is planned in Bagan, an ancient city in the Mandalay Region, where visitors can find traditional handicrafts, regional
products and clothes as well as traditional food, said Tint Swe, chairman of Myanmar Restaurant Association (Bagan). He said that
the night mall was an initiative of the regional minister. The association also mulls another one in Nyaung U, another township in
Mandalay. We have already submitted our plan to the District Authority, to open a night mall at the Shwezigon Pagoda. We plan to
open the mall in 2016. We havent received the official permission yet, Tint Swe said. Bagan has more than 100 restaurants and about
80 are members of the association. Some will become part of the night mall.
Mandalay has been one of the most famous tourist destinations in Myanmar. The number of visitors have been increasing, encouraging
accommodation development. According to the Ministry of Hotels and Tourism, the region is home to 144 hotels, motels and inns with
nearly 6000 rooms. This year, Myanmar aims to attract 4.5 million tourist arrivals. In 2014, it welcomed a record number of 3 million
visitors who generated more than US$1 billion in revenue.

RESIDENTIAL

Zoning Plan in Limbo As Experts Push for Re-Start

Source: Myanmar Times (2nd March.2015)
Yangons zoning plan is due for a restart after contentious discussions meant the process had ground to a halt, according to U Toe
Aung, urban planner with Yangon City Development Committee. Authorities may be hesitating on the plan, but it will eventually arrive
as the government has pledged to put it in place, he added. U Toe Aung said developers attitudes are also beginning to change.
Several years ago, many construction businesses wanted to build high-rises, but interest has somewhat disappeared as developers
realised this is complicated by poor infrastructure in areas like utilities and roads. Some projects, often with a foreign-owned component,
are keen on high-rise projects though, necessitating the zoning plan. It must still be passed by the Yangon Region hluttaw to become
law. Some have said that when foreign developers proposed projects they are asking too much of the city and its weak infrastructure.
Others have criticised zoning plan drafts as being too restrictive for some developers.

Amenities Dropped to Make Housing Project Cheaper

Source: Myanmar Times (2nd March 2015)
Yangon Region will be home to another low-cost housing project, as governing authorities work to find accommodation for the citys
growing population. To be developed by Yangon City Development Committee (YCDC), officials say it will be the cheapest per unit of
the recent slate of low-cost projects, as a number of amenities like elevators will be left out of the design. Located at the corner of
Zizawha and Setmhu roads in Yangons Shwepyitha Township, the four buildings will be six stories each, according to U Nay Win,
deputy director of YCDCs Department of Engineering. Construction is just about to start, with units ultimately to be made available at
the end of 2015 though it remains to be seen whether the space will sold or rented out. While no decision has been reached, if sold
the units will be priced around K10 million (US$9700) well below other similar low-cost housing ventures announced recently, he
added. Building the four structures will cost K1.83 billion (US$1.7 million), with a road, fence, park and electricity equipment costing
another K256 million in total.

Large Increase in Building Permits

Source: Myanmar Times (2nd March 2015)

Contractors have lined up at Yangon City Development Committee for building permits after the committee demolished several
buildings being constructed without permits, according to a senior official. So far in 2014-15 the department has roughly doubled the
number of building permits it has given out to 7270 compared to the year earlier, said Department of Engineering (Building) deputy
director U Nay Win. The figure of 7270 permits is a significant increase on previous years. In 2011-12, just 2100 building permits were
given out, and 2460 in 2012-13. In 2013-14, 4460 buildings received permits. Of the 7270 permitted buildings, about 3000 are between
five and eight storeys. There are 89 buildings between nine and 12 storeys, and 34 above 12 storeys. Building permits are only one
step in the approvals process to build in Yangon, which can also include direction from the Myanmar Investment Commission. The
Department of Engineering has pledged to turn around submitted proposals within 14 days if the forms are correctly filled out. Once
proposals are approved, they go to Yangon City Development Committees executive committee for the final green light.

CHD Bank Issues K80billion in Housing Development Loan

Source: Myanmar business today (5th march 2015)
The Construction and Housing Development Bank (CHD Bank) has issued over K80 billion ($77.6 million) in loans to developers of
affordable housing projects, a senior bank official said. Established in January 2014, the bank started issuing loans in late 2014 and
has maintained running loans between K65 billion to K80 billion by mid-February. CHD Bank, directly supervised by the Ministry of
Construction, provides loans with a 12 percent interest rate to construction companies working on affordable housing projects and the
ministrys Department of Human Settlement and Housing Development (DHSHD) for its affordable housing developments. The bank
received increasing requests for loans from private contractors and also from Mandalay City Development Committee (MCDC) in 2015.
Loans for affordable housing projects are funded from the capital the bank has raised, which includes $11 million from Japan. We are
looking to get loans from other countries. CHD Bank is currently trying to widen its network to get additional loans from South Korea
among other countries, and hopes to lend with lower interests when it can secure more foreign loans. The bank was launched with an
initial capital of K100 billion ($103 million). CHD Bank also plans to establish branches in the country to be able to fund affordable
housing in other states and regions

HOTEL & TOURISM

Tours to Myeik Islands 'Still Costly'

Source: Eleven Journal (4th March 2015)
Trips to Myeik Archipelago are too costly and also in need of infrastructure, according to local tour agencies. "The plane ticket to Myeik
is around US$200. There are no ferryboats to the isles and travellers need to spend more on hiring private boats. So the transportation
charges alone cost about US$500. Together with accommodation fees, the cost goes up to US$800," said Noun Noun Han, general
secretary of the Union of Myanmar Travel Association.
Further, the hotel charges in the area are not budget-friendly. Myeik Archipelago still retains its nature which attracts foreign tourists.
There are only a few tour agencies in service. Kayinkwa Island and Zardatgyi Island are must-visit places to see the lifestyle of
indigenous Salon people.

Price Hikes in Southern Shan Keep Local Tourists Away

Source: Eleven Journal (4th march 2015)
Despite the increase in foreign tourism in Taunggyi, Inle, Kalaw and other destinations in southern Shan State, price hikes have kept
many

local

visitors

away

from

these

places,

according

to

sources

in

the

travel

and

tourism

sector.

Hotels in Inle are expensive. Those in Kalaw are more expensive. So we cannot offer packages to all classes of people, [especially]
local people]. It costs at least over US$100 to visit Taunggyi, said a representative of Caravan Myanmar Tour Co. Currently, the total

cost of a one-night, two-day trip from Yangon to Ngwe Saung Beach is $65 per person, and a trip of the same duration from Yangon
to Chaungtha Beach costs $85 per person. Thus, only middle-class people can afford to visit these places. Kalaw has seen more
tourists. Many travel through in nearby villages. As for local visitors, they just stop for a while, but they rarely visit nearby villages.
There are hotels with fair prices, but in high season, rooms are full and prices rise, said Naung Naung Han, General Secretary of the
Union of Myanmar Travel Association. Since hotels in Inle Lake are built to meet foreign tourists tastes, prices are high. Thus, most
local visitors stay in nearby Nyaung Shwe in order to visit Inle Lake.
INDUSTRIAL

Plan to Collect Vat for Industries Operating On CMP System

Source: Eleven journal (2nd March 2015)
The Yangon region government plans to collect value added tax (Vat) instead of double taxation for the industries operating on CMP
(cutting, making and packing) system, said Zaw Aye Maung, minister of the Rakhine Ethnic Affairs and Labour for Yangon region. Most
of the factories especially shoe and garment factories are operating on CMP system. Myanmar is attracting more foreign investors
because of tax privileges granted by the government. Most foreign investors are from China, Japan, South Korea and Hong Kong and
they mostly invest in the garment industry and other industries operating on CMP system. The garment industry operating on CMP
system exported about US$ billion worth of products in 2013 and on 2014. The government is targeting to export products worth
US$1.5 billion in this fiscal year, according to the Myanmar Garment Manufacturers Association.

Agreement on Dawei SEZ Moves Closer

Source: Mizzima Journal (3rd March 2015)
The Myanmar government is expected to sign an agreement with two Thai construction companies to start developing the first phase
of the Dawei megaproject, the Bangkok Post reported on March 3. Mr. Somjet Tinnapong, managing director of Dawei Development
Company, a subsidiary of Italian-Thai Development Plc, said a signing ceremony was expected this month for Ital-Thai and Rojana
Industrial Park Plc. The first phase will cover 27 square kilometres at a cost of 20 billion Thai baht [K666 billion], he said. The first
phase of the project is expected to be finished in the next two years, during which light industries are likely to set up on the estate.
Myanmar and Thailand agreed in June 2013 to set up the Dawei SEZ Development Company with an equal shareholding and initial
investment of 12 million baht, far below the 100 million proposed earlier. The company is registered in Thailand.

Rakhine Government Prepares Workers for Foreign Industries

Source: Business Myanmar today (5th march 2015)
The Rakhine state government is to provide capacity building training in Pone Nar Kyun Township for local workers to prepare them
for the incoming foreign investment, according to U Win Myaing, a spokesperson of the state government. The primary aim of the
program is to prepare the locals to be competent and efficient in their line of work, so that they may be employed by foreign investors,
who are expected to invest in Pone Nar Kyun Industrial Zone. The training will cover machinery operation, small engine repair and
welding. Some business leaders from Taiwan and South Korea have come to the project zone to assess the possibilities for investment.
Executives from Su Htoo San, a local company, and BXT, a South Korean firm, have met with the Rakhine state government to discuss
investing in the development of the states capital Sittwe.

Mandalay Industrial Park to Starts Operation in April

Source: Business Myanmar Today (28th Feb 2015)
The first stage of an industrial park being built in Myotha area of Mandalay region will begin operations in April, according to a senior
official from the regional government. The Mandalay Myotha Project has been implemented on a 10,000-acre land by the Mandalay
Myotha Industrial Development Public Co since 2013. The projects first phase, which is on 460 acres of land, will be finished soon, U

Kyaw Myint, Mandalay regions minister for electricity and industry, said. The project, planned to be developed in various phases and
finished by 2020, was approved by the lawmakers at the fifth regular session of the regional parliament in 2012. In addition to industrial
zones, a port, warehouses, an 18-acre modern golf estate, hotels, retail centres and international schools will also be included in the
project, U Kyaw Myint said.
The project, when finished, is expected to create numerous job opportunities for the locals and reduce logistic costs for trading by
providing an easy access to the waterway along the Ayeyarwaddy River, the minister added. The regional government said it is also
preparing a master plan for conserving the ecology and natural sceneries along the Ayeyarwaddy. The regional government has invited
owners of the unutilised industrial land in the region to report the obstacles deterring them from operating on such land. As of February
13, owners of only 500 industrial land plots out of the 3,600 vacant industrial plots have contacted the officials. The regional government
has also offered to help the land owners who wish to sell, lease or transfer the title to their plots.
INFRASTRUCTURE

Busan, Myanmar Authorities Sign Port Deal

Source: Business Myanmar Today (2nd march 2015)
South Koreas Busan Port Authority (BPA) has signed a memorandum of understanding (MoU) with Myanmar Port Authority (MPA) for
mutual growth and cooperation. According to the deal, BPA and MPA will jointly implement port development, management and
operation, as well as organise seminars, exchange information and manpower, BPA said in a statement. The deal was signed during
BPA President Lim Ki-tacks visit to Yangon in February. BPA plans to enter into the East Asian market to establish the network and
develop Busan Port, a prestigious port, by expanding port capacity as a transshipment hub port, Lim said. Myanmar has recently
enacted the New Port Authority Act which is set to change the port operations from a state-run management system to a public port
corporation like BPA.

Office Services
At Colliers International, we understand that every clients situation is
unique in its requirements, opportunities and challenges. Colliers
International Office Services philosophy is based on a partnership
where we provide dedicated resources to work closely with our clients
on their office space strategy.
Colliers International has a network of 522 offices worldwide. This,
coupled with the depth of experience of our professional locally, allows
us to provide our office services on a local, regional and global basis
to our clients depending on their portfolio.
CAPABILITY
Leasing assignments are conducted through a proven process, where
we apply our people and resources to translate office space and
facility requirements into defined strategies. We undertake leasing
assignments by combining our know-how of the market with the
support of proprietary databases, financial tools, site selection
mapping and move management techniques to deliver the most
efficient and effective tactical implementation for our clients.
Our dedicated team of Colliers International professionals has
successfully supported many local and multinational clients to achieve
the best and optimal outcome from their office space strategies.

SERVICES
Tenant representation services
Landlord representation services
Sale and purchase of office space
Short and long term office space leasing
Lease agreement negotiation and restructuring
Business needs and facility planning
Back-up site planning and implementation
Space planning and design services
Integrated project and move management
Strategic consultancy on short, medium and long
term office requirements
Lease administration and management

Colliers International | Accelerating success. | www.colliers.com

Unit 7/C (6th Floor), White Cloud Building (Right Entrance), No. (138/142) Thein Phyu Road, Botahtaung Township | Yangon | Myanmar.
Yee Mon Cho
Analyst
Mobile +95 (0) 95047334
Yeemon.Cho @colliers.com

Karlo Pobre
Manager
Research & Advisory
Mobile +95 (0) 9795733378
Karlo.Pobre @colliers.com

Antony Picon
Managing Director
Main +95 (0) 9421034026
Antony.Picon@colliers.com

Likes us on Facebook: Colliers International Myanmar

Follow us on Twitter: @ColliersMyanmar
This weekly news document has been prepared by Colliers International for general information only. Colliers International does not guarantee warrant or represent that the
information contained in this document is correct. Any interested party should undertake their own enquiries as to the accuracy of the information. Colliers International
excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damage arising directly or
indirectly there-from.