: Untapped Potential

Transcription

1 : Untapped Potential

2 Myanmar s New Political Landscape Change of Status

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

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

5 NLD NEGOTIATION COMPROMISE SMOOTH TRANSITION Military

6 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 Stable Politics Internal Peace Development

8 Granting GSP in NOV 2016 To Lift Remaining Sanctions Growth & more competition in Myanmar US has also eased sanctions in MAY Next major development: The new US Administration to be sworn into office in JAN 2017 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 These were announced during ASSK s recent visit to the US

9 A country of Late-comer Status Myanmar as Others Choice Others as Myanmar s Choices

10 Pre-reforms Present

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12 Country No. of Enterprises Approved Amount (million USD) 1 China , Singapore , Hong Kong 107 7, Thailand 58 3, U.K. 50 3, Republic of Korea 114 3, Malaysia 28 1, * Thailand s position is comparatively waning in Myanmar. Source: Directorate of Investment and Company Administration (DICA), Myanmar %

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14 Reality Check

15 Strong Growth 8.4% in 2016 by ADB s forecast Strong prospects for mediumterm 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 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 Trust in Thai products & services Immediate neighbour = natural economic partner Supporting mechanisms: Royal Thai Embassy / BIC /TBAM / Thai Banks/Thai Alumni Association Good attitude towards Thais and Thailand

19 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 : Untapped Potential

21 State Counsellor ASSK President Htin Kyaw 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 Vice President Myint Swe Vice President Henry Van Thio

22 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, agrobased industries and other infrastructural projects.