MARCH 23 th 2015 ECONOMY. Budget Deficit to Persist in Economic Zone in Muse Goes Ahead. Yoma Gets Lease Extension on Yangon Hotel Project

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1 MARCH 23 th 2015 ECONOMY Budget Deficit to Persist in Economic Zone in Muse Goes Ahead Source: Myanmar Business Today (16 th March 2015) Myanmar has forecast a continued budget deficit of 5.22 percent of GDP in the next fiscal year of , exceeding the target of 5 percent recommended by the International Monetary Fund (IMF). A consultation workshop on the pre-state budget called for bringing the budget deficit growth under control, state-run media reported. Myanmar s deficit totalled more than K7.2 trillion ($7.2 billion) in the three previous fiscal years. INVESTMENT Yoma Gets Lease Extension on Yangon Hotel Project Source: Myanmar Business Today (17th March 2015) Singapore-based conglomerate Yoma Strategic Holdings was granted by the Myanmar Investment Commission (MIC) an extension of a lease to develop the former headquarters of the Burma Railways Company into a five-star hotel, the firm said in a stock exchange filing. Meeyahta International Hotel Ltd (MIHL), a company in which Yoma holds an effective interest of 80 percent, holds the land development rights for the downtown site in Yangon dubbed as the Landmark Development. The site currently comprises the Grand Meeyahta Hotel, which had ceased operations in October 2013 to make way for the proposed redevelopment, and the former headquarters of the Burma Railways Company which is a heritage site built in Yoma said the firm and its joint venture partners intend to develop the site into a mixed-used development The Peninsula Yangon. The approval announcement drove shares of the SGX-listed firm sharply higher amid heavy volume as investors piled into the stock, Singaporean media reported. On March 11, Yoma stocks closed at 44 cents each, a 12.8 percent rise from the previous close, with about 26.5 million shares changing hands.

2 RESIDENTIAL Ongoing Housing Developments Fall Short of Local Demand Source: Myanmar Times (17th March 2015) Housing projects currently in progress in Myanmar can barely fulfill people s need for shelter, according to the Department of Human Settlement and Housing Development. Right now, public need differs from region to region. Few are working to fill these needs, said Nay Min Htet, deputy director of the Department of Human Settlement and Housing Development at the recent Opportunities and Challenges for Developing Housing and Construction Business Seminar. Tenders have been called for developing 150-acres of land in Dagon Seikkan Township. The project will start soon. Many low-cost and affordable housing units will be created by the project. The exact number of rooms might be announced after a month. Right now, some submitted designs do not match the department s requirements, so we are still negotiating. For example, the developers can t provide the road area we want, said Nay Min Htet. According to the Ministry of Construction, more than 18,000 rooms will be available in 19 low-cost and affordable housing complexes being built in various regions within the fiscal year. Out of the 19 total housing projects, 15 are reportedly located in Yangon Region, one in Mandalay Region, two in Sagaing Region and one in Magway Region. The Ministry of Construction stated that the Department of Human Settlement and Housing Development has planned to construct 10 low-cost and affordable housing projects with nearly 20,000 units during the fiscal year. INDUSTRIAL Scarcity of resources for Securities Industry Source: Eleven Myanmar (17th March 2015) The stock exchange and private enterprises to operate in the securities industry are facing huge problem of human resource scarcity, said a minister. Since the stock exchange will be a major entity, it will require a large number of staff. As Myanmar has never experienced this before, there is no talents to use. This human resource problem is being the most important problem, said Maung Maung Thein, the deputy minister of the Ministry of Finance who is leading for implementation of Yangon Stock Exchange. Right now, there are 15 people employed for Stock Exchange Certificate Market (SECM) and they are under training programmes. INFRASTRUCTURE Another Int l Port Terminal Goes Live in Yangon Source: : Myanmar Business Today (16th March 2015) A newly-completed international port terminal in Yangon was put into service last week, according to Myanmar Economic Corporation (MEC), which funded the project. The Ahlone International Port Terminal-1 is close to Yangon downtown and located on the eastern bank of the Yangon River. The wharf with a 600-metre bridge and hectares of container space allows three vessels with 20,000 tonnes of load, the MEC said. The new facility has a container storage capacity of 13,210 TEU (20-foot equivalent unit), it added. The project started in early 2013 and is one of the six projects being implemented under Yangon port terminals development program.

3 APR Expands Mandalay Power Plant Capacity Source: : Myanmar Business Today (16th March 2015) Florida-based APR Energy announced that it has commissioned a 20 megawatt (MW) expansion of its power plant in Myanmar, providing the Myanmar Electric Power Enterprise (MEPE) with a guaranteed minimum of 102MW of power generation. In February 2014, APR clinched a contract to build a fast-track power plant in upper Myanmar, becoming the first American company to sign a power generation agreement with the government since the lifting of sanctions in The plant, which features CAT low-emission mobile gas power modules, went on operation in May last year. Based in Kayaks, in the Mandalay region, the expanded power plant is one of the largest gas powered plants in Myanmar, providing electricity to over six million people. A newly-completed international port terminal in Yangon was put into service last week, according to Myanmar Economic Corporation (MEC), which funded the project. The Ahlone International Port Terminal-1 is close to Yangon downtown and located on the eastern bank of the Yangon River. The wharf with a 600-metre bridge and hectares of container space allows three vessels with 20,000 tonnes of load, the MEC said. The new facility has a container storage capacity of 13,210 TEU (20-foot equivalent unit), it added. The project started in early 2013 and is one of the six projects being implemented under Yangon port terminals development program. REFORMS Economic Zone in Muse Goes Ahead Source: Myanmar Business Today (16th March 2015) A new trade centre at the border town of Muse, part of the Muse Central Economic Zone project in northern Shan state linking China s Ruili of Yunnan province, is currently under construction, an official report said. The new economic zone, being established on 120 hectares of land at a cost of $51.54 million, comprises 18 estates including jade trading facilities, markets, shops, hotels, restaurants and housing complexes, according to the project plan. The zone is targeted to be completed in 2017.

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