This artifact intends to reach out to different investors and investment firms considering to invest in Myanmar either to reap the benefits of investing in the last frontier or to help develop the poor living conditions in Myanmar. With the knowledge of the roles of The World Bank Group and MDBs and different financial instruments that I have gained from Financing For Development Course, I would like to share a glimpse of Myanmar investment climate and propose some generic financial and non-financial solutions to tailor different risk appetite, desire to create impact and implement social missions by international and domestic investors.

1. Development Finance Impact Project
Digital Artifact
Propose financing and other solutions that will increase private and public
finance for development in Myanmar
BY AYE MYAT MON OO

2. Contents
1. Targeted audiences
2. Problems and Issues Targeted
3. Why and how the government, official aid provider or private sector
would want to participate?
4. The main obstacles currently standing in the way of unlocking financial
opportunities
5. Suggestions for solutions

3. Target Audience & Purpose of the Artifact
This artifact intends to reach out to different investors and investment firms
considering to invest in Myanmar either to reap the benefits of investing in the last
frontier or to help develop the poor living conditions in Myanmar. With the
knowledge of the roles of The World Bank Group and MDBs and different financial
instruments that I have gained from Financing For Development Course, I would
like to share a glimpse of Myanmar investment climate and propose some generic
financial and non-financial solutions to tailor different risk appetite, desire to create
impact and implement social missions by international and domestic investors.

4. Myanmar’s Investment Climate 2017
Total amount of FDI approved in 2016- $ USD 67,240 mil
Infrastructure development and O&G production mainly
driving the FDIs and economy
Myanmar has been in a state of constant civil
wars since 1948. Myanmar is one of the most
ethnically diverse countries in the world with key
non-Burman ethnic groups (40% of the total
population) demanding equality with the Burmans
in the three public realms, specifically the
protection of ethnic culture, religion, the
devolution of tangible executive, legislative, and
judicial power to the ethnic states within a true
federal union, and a democratic form of
government. With their demands unmet, the
ethnic groups turned to armed insurgency.
 High Political Risk

5. Investment Trends
 Myanmar’s potential to attract Foreign Direct Investment (FDI) is still untapped.
 In the past years, the majority of the investment went into natural resource sectors, with
only a small portion of that to the manufacturing or services sectors and starting from
2016, this has started to change.
 Moving forward, observers expect the manufacturing and tourism sectors to continue
growing and attracting more FDI.
 Conversely, observers suggest that political uncertainty and the rising influence of civil
society might temporarily have halted or deterred new large-scale investments in the
power and mining sectors that did not have sufficient support from the local communities
most affected by the projects.
 Foreign investors are starting to explore investment opportunities in power, aircraft leasing,
protection services, education, health services, banking, financial services such as
accounting, and telecommunication.
 Despite the trends, local experts believe that developments in Healthcare, Microfinance
and Education are the most fundamental ones to actually transform the country with
suitability focus.
 Those investors who are employing more patient capital, higher risk and longer investment
horizon are gradually reaping the solid returns but for most of the rest of the investors, high
risk keeps stopping them from investment in Myanmar.

6. Myanmar Education: Most Needed Tool for All
Policies Reform
 After 50 years of dictatorship, brainwashing,
lots of government’s propagandas, Myanmar
people could not keep up with the rapid
government’s transition and new policies in
2016.
 These factors created massive skills gaps
resulting the slow adaptation to new policies
and job opportunities created by FDIs.
 Education system reforms from the basic
education level are needed to prevent the same
mistake, encourage different learning styles,
access to learning and increase participation in
policies reform.
 Children living in refugee camps, monastery
and civil war zones should be main priorities to
be included in the reform.
 public libraries and media educating politics,
business, healthcare and financial are also very
vital for the transformation yet still very
ineffective and rare.
1. Transportation Infrastructure limiting the
access to basic education for children
living in outskirts and civil warzones
2. Most of the poor children, especially
orphans can only access monastery and
orphanage education which is not
sustainable
3. Due to lack of minimum family income,
the child hawking is very common
4. There are no meals and water provided
at public schools so poor students
starve
5. For young adults, there is no system of
part time jobs and they cannot make
any income till they finish high school or
university education
Major IssuesOverview Pain Points

7. Myanmar Healthcare: Most Essential Basic Need
1. Transportation Infrastructure limiting the
access to basic education for children
living in outskirts and civil warzones
2. Most of the poor children, especially
orphans can only access monastery
and orphanage education which is not
sustainable
3. Due to lack of minimum family income,
the child hawking is very common
4. There are no meals and water provided
at public schools so poor students
starve
5. For young adults, there is no system of
part time jobs and they cannot make
any income till they finish high school or
university education
Overview Pain Points
 Currently, Myanmar has fewer doctors per
capita than other countries in the region.
 According to the World Health Organization
(WHO), there were 6.1 doctors per 10,000
people as of 2015, compared with 11.9 in
Vietnam.
 The government increased its budget in 2016
but only for the purchase of advanced medical
equipment, the provision of free medical
treatment for government employees and
training medical professionals.
 Development plans should focus on population
coverage, service delivery and financial
protection.
 However, the implementations are facing
challenges such as shortage of medical staff
and lack of proper medical equipment,
infrastructural needs and insufficient funding.

8. Myanmar Microfinance: Difficult Access to Capital
1. Complex registry for INGOs and NGOs
offering micro credit
2. The supervisory capacity for
microfinance is limited
3. There are weaknesses in microfinance
regulation
4. Payment system is underdeveloped
5. There are no credit bureaus or collateral
registries.
6. Limited collateral types are allowed.
7. Microfinance Working Group has no legal
status
8. There is a lack of training providers.
Overview Pain Points
 The financial sector in Myanmar used to be
small and underdeveloped but rapidly
transforming with focus on using fintech to
leapfrog and overall financial inclusion.
 Estimated microfinance outreach is at least 2.8
million with the supply side comprises of a
variety of formal and informal actors.
 Microfinance plays a very important role for
developing the economy since there are very
few other options for SMEs to get funding.
 Private banks are not involved in microfinance,
 partly for regulatory reasons and partly because
of a lack of interest.
 To drive the economy with a very prospective
agriculture industry income, farmers need easy
access to capital yet a lot of challenges are
stopping them and the whole ecosystem from
financing.

9. How WBG Can Help the government and investors?
 IDA Private Sector Window to support pioneering private sector
investments at the country level that would otherwise not have been
funded, especially in fragile states.
 Developing tools such as fixed-income infrastructure indices and
emerging market infrastructure-linked bonds, as well as vehicles to
recycle infrastructure loans and assets, with the help of the
government
 WBG already offers a range of guarantee instruments, which can be
issued in different currencies, for many sectors, and structured to
match the needs of individual transactions. This approach is
expanded with the implementation of IDA’s Private Sector Window.
 Infrastructure loans by The Managed Co-Lending Portfolio Program
(the MCPP) enabling institutional investors to invest together in the
fixed income space with IFC in a portfolio of projects.
Domestic capital +
financial instruments
suitable to institutional
investors for investment
in education, healthcare
and microfinance
Advise Myanmar
government on
developing liquid and
robust capital markets
“creating markets
advisory window,” to
addresses the rising
demand for advisory
services and capacity
building
IDA’s Private Sector Window for Myanmar Other supports
 Main tasks are helping government create an enabling environment for business and
private investments, build strong project pipelines, and lower existing informational barriers

10. IDA18 replenishment period, which runs from July 1, 2017 to June 30, 2020
and together with investors, Myanmar citizens can be beneficiaries of;
 Essential health and nutrition services for up to 400
million people
 Access to improved water sources for up to 45 million
people
 Financial services for 4-6 million people
 Safe childbirth for up to 11 million women through
provision of skilled health personnel
 Training for 9-10 million teachers to benefit 300+ million
children
 Immunizations for 130-180 million children
 Better governance in 30 countries through improved
statistical capacity
 An additional 5 GW of renewable energy generation
capacity
To private sector investors,
Be a part of “The Cascading approach”
This approach would free-up scarce public
resources and allow them to be deployed
to facilitate reforms and expand the pool of
well-structured projects that can be
financed with commercial capital.
Work closely with multilateral development
banks, the UN, the private sector, civil
society and Myanmar Government to
implement new development finance
approaches.

11. Major factors slowing down the overall growth and
coordination among stakeholders
Lack of human
capital
Lack of access to
finance
No sustainability
awareness
Poor business
skills
INTENRAL
Loose Legal
Framework &
Implementation
Poor Coordination
between
stakeholders
Unstable Political
Environment
Lack of
Transparency &
Accountability
EXTERNAL
Low minimum
wage creating
crimes
Difficulties to
adapt to rapid
policy reforms
Lack of health
care & insurance
dividing families
Religious
extremists and
military
propagandas
dividing Citizen
unity
SOCIAL

12. THANK YOU