1. Myanmar’s Overview
: Untapped Potential

2. Myanmar’s New Political Landscape
Change of Status

3. Political Transformation in Myanmar
New Constitution in 2008
General Elections in 2010
By-elections in 2012 with NLD participation
General Elections on 8 NOV 2015
Assumption to Power of NLD Government on 30 MAR 2016

4. Elections on 8 November 2015 Pyithu Hluttaw Amyotha Hluttaw Party
Seats
NLD
255
USDP 30
Others 45
Military
110
Total
440
Party
Seats
NLD
135
USDP 11
Others 22
Military 56
Total
224
* NLD’s landslide victory with majority control in both houses

5. Political Compromise NLD Military SMOOTH TRANSITION COMPROMISE
NEGOTIATION
COMPROMISE
SMOOTH TRANSITION
NLD
Military

6. 21st Century Panglong Conference
31 August – 3 September 2016 in Nay Pyi Taw
Joined by 18 out of 21 Ethnic Armed Organizations, including major groups such as UWSA and KIA = almost inclusive
Live broadcast!
Significance:
Marking the start of Myanmar’s peace process under the NLD Government
Providing a venue for discussions among different stakeholders
Next steps:
Further political dialogues
Working towards a democratic federal union

7. Towards Smooth Transition
Stable Politics
Internal Peace
Development

8. Change in US Policies Growth & more competition in Myanmar
US has also eased sanctions in MAY 2016.
Next major development:
The new US Administration to be sworn into office in JAN is likely to further ease US policies towards Myanmar, including the total lift of remaining sanctions
An increase in trade and investment flows to Myanmar is expected as a result
Granting GSP in NOV 2016
To Lift Remaining Sanctions
Growth &
more competition in Myanmar
These were announced during ASSK’s recent visit to the US

9. Changing Status of Myanmar
Influx of FDI
Resumption of GSP
Easing Sanctions
Increasing Official Development Assistance
A country of Late-comer Status
Myanmar as Others’ Choice Others as Myanmar’s Choices

10. Changing status of Thailand in the Context of Myanmar-Thailand Relations
Pre-reforms
Present

12. Foreign investment of existing enterprises (as of 31 July 2016)
Country
No. of Enterprises
Approved Amount
(million USD) % 1
China
111
17,
33.64 2
Singapore
173
12,
23.50 3
Hong Kong
107 7,
13.59 4
Thailand 58 3,
6.41 5
U.K. 50 3, 6
Republic of Korea
114 3,
6.40 7
Malaysia 28 1,
2.46
* Thailand’s position is comparatively waning in Myanmar.
Source: Directorate of Investment and Company Administration (DICA), Myanmar

14. Tapping Potentials
Reality Check

15. But Myanmar is a Market “You Have to be In”
Strong Growth
8.4% in 2016 by ADB’s forecast
Strong prospects for medium-term economic growth
Expanding Consumer Base
Population of 54.1 million
Growing middle class
Perfect Production Base
GSP
Relatively low labour cost Proximity to Thailand
Stable Politics
Successful transition Government with high popularity

16. Economic reforms Yangon Stock Exchange (DEC 2015)
Foreign Investment Law (2012)
Foreign investment in telecom. sector (2014)
Foreign Banking Licenses (OCT 2014)
Minimum wage of 3,600 Kyat ($2.80) for all sectors (2015)
Yangon Stock Exchange (DEC 2015)

17. Growing sectors Consumer Goods Construction / Infrastructure Energy
Tourism
Telecommunication
Logistics
Banking / Financial
Agriculture / Food products
Health / Pharmaceuticals

18. Thailand’s Advantages
Immediate neighbour = natural economic partner
Trust in Thai products & services
Good attitude towards Thais and Thailand
Supporting mechanisms: Royal Thai Embassy / BIC /TBAM / Thai Banks/Thai Alumni Association

19. Overcoming Challenges
Be quick to enter the market
Competition is on the rise
Early bird catches the worm
Avoid being too risk-adverse
Challenges are to be overcome
We need to change our mindset
Forget the past and look towards the future
We need to get rid of “our historical baggage.”

20. Myanmar’s Overview
: Untapped Potential

21. ASSK Power Consolidation: State Counsellor
President Htin Kyaw
Vice President Myint Swe
Vice President Henry Van Thio
State Counsellor ASSK
State Counsellor Law was promulgated on 6 April 2016
ASSK has literally become the “Second Person” in Myanmar
Ministry of the State Counsellor’s Office was created on 10 May 2016 to support ASSK’s work

22. ASSK as State Counsellor
As the Second Person in Myanmar = Prime Minister
Working with ministries, departments, organizations, associations and individuals of the government
Accountable to Pyidaungsu Hluttaw, thus acting as a link between Executive Branch and Legislative Branch
Supported by Ministry of the State Counsellor’s Office with dedicated budget

23. Priority areas for investment
The Directorate of Investment and Company Administration (DICA) is inviting foreign companies to make investments in labour-intensive industries, agro- based industries and other infrastructural projects.