1st July 2013 Berjaya Times Square Hotel
Manufacturing and industry sector With the abundant natural resources, high labor quality available at low cost, existing manufacturing facilities and favorable geographic location, Myanmar has high potentials for industrial development. It contributed to 11.1% of GDP during the past 10 year period. The share in GDP by ownership in manufacturing sector is 26% state owned, 1% co-operative and 73% private sector respectively. The employment in this sector is relatively low, less than 10 percent of total labor force, which is about 1.7 million. The agro-based industries in terms of number as well as value are predominantly agricultural products processing industries such as rice milling, edible oil milling, beans and pulses processing, sugar milling, food and beverage, etc. Within the ASEAN, labor intensive and low tech industries are relocated to least developed countries. Myanmar has more rooms for such kind of opportunities. The priority industries in which investment is strongly encouraged:
Export Oriented Industries
Domestic Market Oriented Industries
Resource-based industries
Resource-based industries
• agro-based industries
(canned fruits / vegetables)
• wood-based industries
• leather, rubber-based industries • copper fabrication
• seafood industries Non-Resource based industries • garment / textile
• light manufacturing / electrical appliances
• electronic industry • footwear industry
• other export oriented industry
• food/ beverages (rice, oil, sugar mills, etc) • agro supportive industry
(farming tools, fertilizers, pesticides) Non-Resource based industries • cement
• simple electronic and machinery components
• plastic ware
• iron and steel
• agro supportive industry (tractors, water pumps) • packaging industry
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With the abundant natural resources, high labor quality available at low cost, existing manufacturing facilities and favorable geographic location, Myanmar has high potentials for industrial development. The government accelerates privatization of State-owned Enterprises as well as encouraging downstream manufacturing to reduce the dominance of primary commodities in exports with the aim to have 34.2 percent ratio of industrial sector to the GDP in 2015-2016 and to achieve 14.1 percent development annually. To meet strong infrastructure requirements, a total of 30 industrial zones were established throughout the country since 1995. The priority industries in which investment is strongly encouraged are export-oriented industry like agro-based industry, wood-based industry and processed and semi-processed seafood. Besides, non-resource-based industry and labor intensive industry are also being encouraged under FIL and Myanmar Citizens Investment Law. Import substitution manufacturing industries such as consumer durable products and construction materials are also potential areas to invest for domestic consumption and export. At present, the agro-based industries in terms of number as well as value are predominantly agricultural products processing industries such as rice million, edible oil milling, beans and pulses processing, food and beverage, etc. Meanwhile, it needs to establish industrialized nation for national prosperity. It is required to extensively set up factories and workshops to be able to manufacture value-added products replacing primary products. To establish factories and workshops, it needs to invite both local and foreign investments.
When a group of individual minds are coordinated and function in harmony, the increased energy created through that alliance becomes available to every individual in the group.
- Napoleon Hill
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Registration & Ne tworking | 08:30 am to 9:00 am Session 1 | 9:00 am to 10:00 am Update on Current Macro/Micro Economic Perspective and Business Opportunities for Foreign Investors in Manufacturing & Industrial development. • Myanmar’s economic developments in Manufacturing & industrial developments and the effect of the current economic and financial instability on the country. • Industrial readjustments in Myanmar, assessment of the current situation. • Myanmar’s strategy in promoting investments, performance in the industry and its climate in the sector. • Industry competitiveness & reform measures for inclusive growth & industrial readjustments. • The role of Foreign Investment Law (FIL) and Myanmar Investment Commission (MIC) • The development of the government’s action plans in growing the industries in Myanmar
Session 2 | 10:00 am to 11:00 am Development of SMEs in Myanmar • Role and Importance of SMEs , Current status of SMEs in the industry • SME’s policy framework • SME Cluster Development and Business Data base Initiatives • Achievements and Challenges of SME Development in Myanmar Madhurjya Kumar Dutta, Program Manager, Trade & Investment Facilitation Mekong Institute for Development and Cooperation (An Inter Governmental Organisation of GMS countries)
11:00 am – 11:30 am Break & Networking
Session 3 | 11:30 am to 12:15 pm Regulatory Structures for Manufacturing and Industrial development Business in Myanmar • Form of Business- Setting up a New Business – Basic Legal Issues to Consider • The New 2012 Myanmar Foreign Investment Law, Rules and Regulations • Background of the Foreign Investment Law • Forms of Investment & Covered Activities • Benefits & Guarantees • Processes for Registering New Businesses in Myanmar • Other Salient Features of the Foreign Investment Law • Lease of Land • Dealings in Foreign Currency • Comments on the Foreign Investment Law specifically to the Manufacturing & Industrial Activities Marlon Wui, Foreign Consulting Attorney of Kelvin Chia Yangon Ltd and Partner of Kelvin Chia Partnership (Singapore)
Session 4 | 12:15pm – 1:00pm Opportunities and Challenges of Manufacturing in Myanmar • From light to heavy industry manufacturing – What makes sense and what doesn’t? • Industrial site selection – A look at Critical Location Factors (CLFs) • Industrial Zones vs. Special Economic Zones: Making sense of land classifications & rules • Advantages & Disadvantages of Manufacturing in Myanmar Peter Church OAM | Group Chairman, AFG Venture Group and Of Counsel, Stephenson Harwood (in association with U Tin Yu and Associates, Yangon)
1:00 pm – 2:00 pm Lunch & Networking
Session 5 | 2:00 pm – 3:00 pm Joint Ventures, Local Partnerships • Why in Myanmar, a joint-venture is so important? • When to do, a joint-venture in Myanmar? • How to choose the right partners and make sure it is the correct choice. • How to structure a Joint Venture with local companies in Myanmar. Billy Selig, Managing Director New Crossroads Asia
Session 6 | 3:00pm – 3:45pm Myanmar Labour Law for Foreign Investors in the Manufacturing & Industrial Development Sector • Types of Employment under the Employment Law • Salary & Allowances overview of expenditure groups, minimum wage • The role of Township Labour Offices in recruitment • Workers' Social Security • The role of The Union of Myanmar Foreign Investment Law
Sebastian Pawlita, Partner Polastri Wint & Partners
3:45 pm-4:00 pm Break & Networking
Session 7 | 4:00pm -5:00pm Financial Backing for Foreign Investors in Myanmar and Taxation Considerations Benefitting the Industries in Myanmar • Understanding Myanmar’s Banking System - Myanmar Foreign Trade Bank – MFTB, - Myanmar Investment and Commercial Bank – MICB - Myanmar Economic Bank – MEB, • Minimum capitalization requirements • Increasing accessibility to financial institutions- Operations of microcredit • Myanmar’s tax structure - Taxes on domestic production and public - Taxes on income and ownership-income tax - Customs duties - Taxes on utility of State-owned properties-taxes on land. - Income tax laws on resident and non-resident foreigners - Myanmar’s Double Taxation Agreements (DTA)- what do you need to know?
Sebastian Pawlita, Partner Polastri Wint & Partners
Partners Branding Design Partner
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Int. Business Development
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People who should Attend Chief Executives Officers, Chief Financial Officers, Chief Investment Officers, Investment Managers, Chief Operations Officers, Managing Directors, General Managers, Human Resource Directors / Managers, Sales Directors / Sales Managers, Business Development Directors/ Managers, Marketing Directors / Managers, Investor Relations Directors / Managers, Head of Legal Department, Lawyers, Research & Development and other relevant Heads of Department Industries: Banks, Investment Companies, Law Firms, Regulators, Information & Technology, FMCG, Manufacturing, Telecommunications and other relevant industries
Mr.Madhurjya Kumar Dutta | Program Manager Trade & Investment Facilitation at Mekong Institute. Mr. Madhurjya Kumar Dutta earned his Master Degree from Delhi School of Economics, University of Delhi and an additional Master of Science in Regional Development Planning and Management from University of Dortmund, Germany. He also holds an advanced Degree in regional development planning. He is currently the Program Manager, Trade& Investment Facilitation at Mekong Institute. Mr. Dutta has over 18 years of experience in private sector development in South and South East Asian countries. Prior to joining at MI, he served as Research Director at Economic Institute of Cambodia and as Advisor for a bilateral project of Governments of India and Cambodia on entrepreneurship and small business development in Cambodia. His key areas of competencies are in entrepreneurship, SME development and trade. He has designed and conducted several capacity development programmes on entrepreneurship and SME development. He has also provided consulting services to various agencies including ADB, The World Bank, GTZ, UNDP, IFC, ILO, USAID, IFAD, World Vision, Chemonics International etc. in areas of Value Chain studies, project impact assessment, investment feasibility, enterprise development strategy, green technology, private sector innovations etc.
Billy Selig | Managing Director New Crossroads Asia Billy Selig is the Founder & Principle of New Crossroads Asia, a Singapore-headquartered boutique financial consultancy with a focus on Myanmar. The firm aims to tap on its team’s extensive experience and network in global capital markets in order to: Consult domestic companies on accessing global capital markets; and assist the global investment community on sourcing/accessing the most attractive investment opportunities in Myanmar. Previously, Billy was Managing Director at Cantor Fitzgerald where he founded its Singapore operations. He has also worked at Lehman Brothers as Head of Asian Sales, Bloomberg Tradebook (Hong Kong) as Executive Director, and the Federal Reserve Bank of New York. Billy now splits his time between Yangon and Singapore.
Marlon WUI | Foreign Consulting Attorney of
Kelvin Chia Yangon Ltd and Partner of Kelvin Chia Partnership Bachelor of Arts (cum laude) in Political Science, University of the Philippines College of Social Sciences and Philosophy Bachelor of Laws (cum laude), University of the Philippines College of Law Admitted to the Philippine Bar in 1999 Member of Corporate and Commercial and Mergers and Acquisitions Division
Corporate/Mergers and Acquisitions – Marlon Wui As a member of the corporate and commercial department of the firm, Marlon is actively involved and assists in a variety of corporate and commercial transactions in Southeast Asia, including Myanmar, Indonesia, the Philippines, Thailand, Cambodia and Vietnam. Marlon’s diverse practice portfolio currently spans mergers and acquisitions, joint ventures, mining, oil and gas, investments, corporate
restructurings, and the establishment of offshore private equity funds. Since joining the firm in 2006, Marlon has acquired and developed significant know-how and work experience in relation to the firm’s steadily growing regional practice, particularly in the Indochina region. As an active part of the firm’s Myanmar practice group, Marlon collaborates with the firm’s Yangon-based lawyers in rendering advisory work on a variety of subjects/issues, including foreign investments in Myanmar in general and the regulatory framework on the mining, energy and agricultural/plantation sectors in particular. In the course of his Myanmar transactional work, Marlon also prepares and reviews various commercial contracts and agreements and other transaction documents. He likewise takes part in extensive legal due diligence investigations and contract negotiations which the firm carries out in respect of various transactions, the more recent of which include mining, hotel, oil palm, and oil and gas acquisitions/investments in Myanmar. Marlon also helps in overseeing the firm’s Indonesia desk which is able to provide advisory and transactional services to clients in relation to foreign investments in Indonesia and cross-border/multijurisdictional matters involving Indonesia laws. In particular, and in collaboration with the firm’s Indonesia law-qualified lawyers, Marlon has assisted in a number of acquisitions work in the Indonesian mining and other sectors, and in the setting up of foreign-invested companies and other investment vehicles in Indonesia. In the course of his work for the Indonesia desk, Marlon has also reviewed various commercial contracts and agreements, and has engaged in advisory work on Indonesian foreign investment, acquisitions, consumer protection, employment and company laws. In relation to offshore private equity funds, Marlon assists fund companies and managers in the preparation of their offering documentation and also advises them on various regulatory concerns affecting the offering and the management of the funds in certain jurisdictions overseas. Capping Marlon’s practice portfolio is his Philippine-bound work, in relation to which he has likewise undertaken advisory and transactional work, the more recent of which include advising on Philippine foreign investment and company laws and undertaking a legal due diligence exercise on the Philippine segment of a cross-border acquisition. Being Philippine law-qualified, Marlon is able to advise and assist clients on a variety of Philippine law-related issues and transactions.
Peter Church | Chairman, AFG Venture Group and Of Counsel, Stephenson Harwood (in association with U Tin Yu and Associates, Yangon) Peter Church OAM is a lawyer, corporate adviser and author who has been involved in the markets of South East Asia and India for more than 30 years. He has seen the “ups and downs” of these countries over that period and particularly the unrealistic euphoria that is often associated with the opening up of these markets. Manufacturing in Myanmar is a sector that is full of risks and he believes it is important that potential investors are aware of these risks and ascertain whether they can manage them. Peter has been involved in Myanmar since the early 90’s, has written the life stories of a number of leading Myanmar business leaders, invested through AFG in several businesses in Myanmar (all closed down as a result of the sanctions) and was ordained a Buddhist monk in a Yangon monastery in 1995. He holds law and commerce degrees from the University of New South Wales, Sydney University and the University of London and was awarded the Medal of the Order of Australia (OAM) for his services to Australian business.
Sebastian Pawlita | Partner Polastri Wint & Partners Sebastian has a bachelor of law degree from Munich University in Germany, a master of law degree from Kyushu University in Japan and has passed the German tax advisor exam. He started his career in a Big Four accountancy firm before working in the corporate and tax department of a well-regarded British law firm in Germany. Before joining P&A Asia and relocating to Myanmar, he was the head of the Ho Chi Minh City office of a leading German law firm.Sebastian has
worked on a great number of deals in South East Asia and assisted many companies from Asia (mainly from Japan) in their overseas operations.
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