Think Ahead Again Across

Three Secrets 1.Understanding the Context 2.Seizing the Opportunities 3.Addressing the Risks and Challenges

1. Understanding the Context

Myanmar Pivotal moment in economic, social, and political transition Prioritization and sequencing of policy actions and investments critical to success of reform agenda and long-term development

Projections Annual average gross domestic product (GDP) growth as high as 9.5% by 2030 From pre-reform baseline of 4.8% GDP per capita to nearly $5,000 by 2030, up from about $900 today

Myanmar Ripe with possibilities for foreign investors Emerging market in every sense of the word Isolated from international community for many decades Bypassed globalisation

Myanmar Fresh opportunities Attracting foreign corporations and agencies eager to invest in energy and resources, telecommunications, financial services, manufacturing and infrastructure sectors Enormous labour force and consumer market

Myanmar Asia’s Last Frontier Last untapped sizeable economy and market in Asia Easing of international sanctions

Strategic Location Combined market of close to three billion people Conduit to Indian Ocean and beyond

Reforms Political Economic and Social Administrative Private Sector Development ‘

Little Done, More To Do Focus on developing economy and rebuilding financial, legal and physical infrastructure Promote inclusive growth Developing skilled workforce

Little Done, More To Do Foreign investment Sharing of technology and skills

Eight Strategic Areas 1.Accelerating governance and public sector reform 2.Ensuring macroeconomic and financial stability 3.Creating business-enabling environment 4.Leveraging rich natural endowments 5.Fostering internationally competitive sectors - manufacturing and services 6.Enhancing regional connectivity and integration 7.Promoting human development and poverty reduction 8.Pursuing environmentally sustainable growth

2. Seizing the Opportunities

Strategic Opportunities 1.Digital Leapfrogging 2.Urbanization 3.Shift in economic structure 4.Reconnecting with global “Latecomer Advantage”

New Opportunities FDI SEZs

FDI Over 100 Foreign Companies Over 50 Local Companies

Goals Job creation Sustainable and inclusive growth Re-engagement with international economic community

Investment Opportunities Extractive Resource Sector - Natural gas, Timber, mining Power generation Agriculture and Fisheries Labour-intensive manufacturing sector

Foreign Investors Bridge gaps in Myanmar’s economy Meeting Myanmar’s immediate needs provide opportunities in longer term for sustainable economic growth

Foreign Investors Add value in many sectors Financial Services Infrastructure Urban Development Power, Electricity, Telecommunications Hospitality Manufacturing Agriculture SEZs

Investment Strategies for Foreign Companies Scope of opportunities immense - size, population, resources, market and relatively undeveloped economy Immediate demand for products or services across wide spectrum of industries

Seizing Short-term Opportunities Identify areas where immediate solutions can be provided Keep ‘bigger’ picture in mind Adopt entrepreneurial approach Creating ‘niches’

3. Addressing the Risks and Challenges

Past Centralised command economy Self-sufficiency Sanctions Institutions and enterprises isolated from international market Information gaps, infrastructural challenges and policy risks

‘Frontier’ Economy Attendant risks and challenges

Challenges Financial, legal and regulatory systems Unforeseen contingencies

Lack of Infrastructure Insufficient telecommunication infrastructure and coverage Transport and logistical links underdeveloped Lack of power

Tackling the Challenges Serious commitment of time and financial resources Realities on the ground - legislative and regulatory restrictions Assess probability of success

Niche Opportunities Myriad opportunities Identify and provide selected services or products within key sectors Deliver solutions that meet specific needs,

Niche Opportunities Establish meaningful foothold Careful feasibility studies Ancillary support

Opportunities for Early ‘Adopters’ Work with local public and private partners Long-term sustainability and mutual success

Quick Wins Immediate results wins trust Combine short-term objectives with long- term strategies

Risk Mitigation Essential in frontier market Contingency plans in place Due diligence Stay abreast of both prevailing market forces and government policies Political risk insurance for large investments Prudence