Matthew Tukaki, CEO of The Sustain Group, gave a presentation on investing opportunities in Myanmar. The presentation provided an overview of Myanmar's economy, population demographics, key industries, impact of sanctions, and laws for foreign investors. It highlighted that Myanmar's GDP is growing and inflation decreasing, with the majority of the population relying on agriculture. Key opportunities for New Zealand and Australian businesses included investments in agriculture, fisheries, education, professional services, and banking/finance. Challenges included not overwhelming the government, aligning with reform priorities, and understanding existing economic structures.

1. Myanmar Business Round table:
Investing in Myanmar: Myanmar 101 /
Opportunities for NZ and Australian
Business
Matthew Tukaki, CEO and Chief Social Investor
The Sustain Group
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

2. Key points from this presentation to take
away:

Overview of:

The state of the economy

Population make-up

Key industries and economic dynamics

Sanction impacts

Key laws to be aware of for foreign investors

The investment opportunity for New Zealand and Australian companies
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

3. History of this presentation

This presentation was first given as part of the AusAid Asialink Myanmar
Business Roundtable “Investing in Myanmar” that was held in Sydney, Australia
on the 19th of June 2013.

Matthew Tukaki attended in his role as Australian Representative to the
United Nations Global Compact.

This presentation has been updated and accompanies an article written by Mr
Tukaki on the subject of New Zealand & Australian investment into Myanmar.
To savour confusion the views, opinions, data and research noted in this
presentation are of Matthew Tukaki, CEO and Chief Social Investor of the
Sustain Group and not in relation to his previous role as Australian
Representative of the UNGC.

This presentation was updated for publication on the 29th of November 2013.
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

4. About Matthew Tukaki
Matthew Tukaki is the CEO and Chief Social Investor of the Sustain
Group. In 2013 Matthew was appointed by Secretary General of
the United Nations Ban Ki Moon, to occupy the ex-Officio Director
of the Board Role of the United Nations Global Compact. His role
is to represent the views and aspirations of the United Nations
Global Compact's more than 100 outposts around the
planet. Matthew is also active in leading Sustain teams into the
field, working directly with clients on mapping social investment
returns and sustainability initiatives.
Matthew is considered to be an expert and trusted advisor when it
comes to the identification and development of social investment
opportunities across Asia, the Middle East and Africa.
Matthew is a Director of the Board of Australia's Peak Mental
Health Body, Suicide Prevention Australia, former Director of the
Board of Australia's Indigenous Chamber of Commerce and a
Member of Deakin Universities Centre for Sustainable and
Responsible Organisations Advisory Board. Matthew also Chairs the
Advisory Board of the International Symposium for the Post 2015
Agenda and the Sustainable Development Goals as well as holding
roles on a number of other private and public sector boards and
taskforces.
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

5. About Sustain
We are a uniquely strategic organisation based in Asia Pacific with partnerships
and clients spanning the globe. Our primary areas of focus see us working with
business and industry as they develop, manage and review activities when it
comes to social investment, sustainability and corporate social responsibility. We
work to ensure an organisation is realising a return on the investments being made
and that they are having the intended impact.
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

6. Economy snapshot

GDP in 2010 was USD 45.4B compared to 2012 when it rose to USD 54B

Inflation has been sitting at around 9% - inflation between 2005-7 sat at 30% +

Unemployment relatively high at 35% although this could be larger given the
inadequate census data collected over the years or an assessment of the
“black market economy

As of 2011 GDP growth was sitting at around 5.5%

The Central Bank of Myanmar is currently embarking on a plan to unify the
country's multiple exchange rate system. From April 2012 to April 2013, the
official exchange rate of 6.4 kyats to $1 USD (a rate that has not changed
since 1977, when it was pegged to the IMF's special drawing rights) will be
floated up, to foster an interbank money market. From 2013 to 2014, the
most widely used informal black market rate will be completely eliminated
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

7. Economy snapshot
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

8. Economy snapshot
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

9. Impact of US economic sanctions

The Government of Burma is under economic sanctions by the U.S. Treasury
Department (31 CFR Part 537, 16 August 2005) and by Executive orders 13047
(1997),13310 (2003),13448 (2007),13464 (2008),and the most recent, 13619
(2012).Debate as to the extent to which the American-led sanctions have had
adverse effects on the civilian population or on the military rulers.

From May 2012 to February 2013, the United States began to lift its economic
sanctions on Burma "in response to the historic reforms that have been taking
place in that country. "Sanctions remain in place for blocked banks and for any
business entities that are more than 50% owned by persons on "OFAC’s Specially
Designated Nationals and Blocked Persons list (SDN list)“

In March 2012, a draft foreign investment law emerged, the first in more than 2
decades. Foreigners will no longer require a local partner to start a business in
the country, and will be able to legally lease but not own property. The draft law
also stipulates that Burmese citizens must constitute at least 25% of the firm's
skilled workforce, and with subsequent training, up to 50-75%.
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

10. Understanding the population
Town
ships
Cities/
Towns
Village
groups

68% Bamar

9% Shan

7% Karen

4% Rakhine
1255

3% Chinese
1424
6498

2% Indian
160
1543
4774

2% Mon
29
259
1611
5472

5% other
10
11
69
381
1199
Rakhine State 4
17
17
120
1041
3871
12
Yangon
Region
4
45
20
685
634
2119
13
Shan State
11
54
54
336
1626
15513
14
Ayeyarwady
Region
6
26
29
219
1912
11651
Total
63
324
312
2548
13742
65148
No.
State/Region
Districts
Wards
Villages
1
Kachin State
3
18
20
116
606
2630
2
Kayah State
2
7
7
29
79
624
3
Kayin State
3
7
10
46
376
2092
4
Chin State
2
9
9
29
475
1355
5
Sagaing
Region
8
37
37
171
1769
6095
6
Tanintharyi
Region
3
10
10
63
265
7
Bago Region
4
28
33
246
8
Magway
Region
5
25
26
9
Mandalay
Region
7
31
10
Mon State
2
11
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

11. Understanding the population
“70% of the population
is agriculturally based”
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12. Important laws to remember for investors

The Labour Organization Law, (The Pyidaungsu Hluttaw Law No. 7/2011), The
14th Waxing day of Thadinkyut 1373. ME. (11th October, 2011)

The Republic of the Union of Myanmar, Pyidaungsu Hluttaw, The Settlement of
Labour Dispute Law (The Pyidaungsu Hluttaw Law No. 5/2012) The 6th Waxing
day of Tagu 1373, M.E. ( 28th March, 2012)

The Foreign Investment Law (2nd of November 2012)

The draft law also stipulates that Burmese citizens must constitute at least
25% of the firm's skilled workforce, and with training, increased in increments
of 25% up to 75% in subsequent years.
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

13. Business investment opportunities

Agriculture and Horticulture – development, management, technology and
skills transfer, skills development and marketing

Fisheries and blue economy - development, management, technology and
skills transfer, skills development and marketing

Education and technical / vocational skills development

Professional services and legal

Government and Public Services skills and knowledge transfer

Reserve Bank – skills and knowledge transfer
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

14. If I was an Australian or NZ
business I would be looking
to the developing world as a
source of immense
commercial opportunity
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

15. Challenges and opportunitie

Not overwhelming Government

Aligning with Government priorities

Aligning with investment and development finance reform / keeping
investment pace with reform

Understanding the current economic structures such as domination of
natural resources and commodities / informed decisions and market
intelligence leads to better market entry investment decisions

Targeted industry development – exporting what we do well

Agriculture (supply chain, primary production and technology) /
extractives / banking and finance / prudential / infrastructure
development
www.sustaingroup.net I matthew.tukaki@sustaingroup.net

16. Questions?

Matthew.tukaki@sustaingroup.net

www.sustaingroup.net
www.sustaingroup.net I matthew.tukaki@sustaingroup.net