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MYANMAR UNION GOVERNMENT APPROVES NEW STATE AND REGION CHIEF MINISTERS

The Myanmar government introduces 14 new region and state chief ministers. These chief ministers will have significant influence for investors going forward. What will be their priorities? How wiil they junction?

Client briefing note | 1 April 2016

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On March 30th, 2016, The Pyidaungsu Hluttaw approved 14 candidates for the position of state and regional Chief Ministers (“CMs”) who will take control of their respective states and regions on April 1st, 2016. A full list of the new CMs, as well as a brief background is included at the end of this article.

Maung (Mandalay Region) is highly respected by the local residents for running a free clinic and being close to Daw Aung San Suu Kyi, while Dr Myint Naing (Sagaing Region) is a welcome choice due to his role in regional politics.

For other CMs their long-standing loyalty to the party seems to have been a major factor in the selection. Many have won seats in the Hluttaw in the 1990 election, and were elected in the 2012 by-election. U Min Min Oo (Mon State) – a vice chairperson for NLD’s Mon Branch, is a dedicated party member. U Mahn Johnny (Ayeyarwady Region) – a former teacher, has been with the NLD for decades. Dr Myint Naing (Sagaing Region) and Dr Khet Aung (Kachin State) have actively participated in the country’s politics since 1988. Dr Aung Moe Nyo (Magway Region) – another long time NLD’s member was elected in the 2012 by-election. U Phyo Min Thein (Yangon Region) – a well-known student activist in 1988 and a MP since 2012, has been

The Myanmar president is responsible for appointing CMs and as expected each of the new CMs are National League for Democracy (“NLD”) members and MPs from the state and regional Hluttaw. Many of the new CMs have been NLD members since 1988. There are also many medical doctors, some of whom are renowned for running free clinics and civil society organizations. The appointment of two women as CMs for Kayin State and Tanintharyi Region has been hailed as a positive move considering the limited number of women in the Pyidaungsu Hluttaw and a single female Union Minister.

The New CMs

In general, the appointment of the new CMs did not come as a surprise to the states and regions, in many, the candidates were expected and supported by the local residents. For instance, Daw Nann Khin Htway Myint (Kayin state), being a social and political activist, has long had the trust of her electorate. Dr Zaw Myint

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a member of a number of important parliamentary committees and a highly anticipated candidate for the post of Yangon’s Chief Minister.

There are also a few newcomers to the NLD family. For instance, U L Phaung Sho (Kayah State) is an educational officer who only joined NLD in 2015 while Dr Lei Lei Maw (Tanintharyi) is a doctor and has been providing free medical care in Tanintharyi Region, and joined the NLD in 2012.

Some disagreement about the appointments occurred in Shan and Rakhine states where the NLD won the minority of seats in the state Hluttaw. Dr Lin Htut (Shan State) faced some opposition from the Shan Nationalities League for Democracy (“SNLD”) and the Union Solidarity and Development Party (“USDP”), which won the majority of the seats in the state Hluttaw. The situation is more complicated in Rakhine State – the appointed NLD CM – U Nyi Pu, faces opposition from the Arakan National Party (“ANP”), which has the majority of seats in the state Hluttaw. They have long voiced their concerns about the CM not being an ANP member and even staged out a walk-out of parliament during the president’s proposal of candidates.

Overall, there seems to be a very positive attitude towards the new CMs. The majority of the above experiences tell us a lot about the

willpower and loyalty of the new CMs but it is hard to determine how well they will perform in their new roles. Resolving land disputes, fighting corruption, promoting national reconciliation, improving education and health sectors – are the promises many of them have made to their states and regions. But there is no questioning that development of their states and regions will require investment and the allocated budget will not be able to cover the most urgent needs.

Off-grid power

It is highly likely that the new CMs will strive to prove themselves as worthy of their new positions. The pledge to fight corruption and be transparent can be taken as a promise of equal opportunities for all investors. While the new CMs and the ministers they appoint are getting acquainted with their new roles they will be working hard on bringing in more direct investment into their states and regions and the first investors to make their enquiries will probably have a better chance of getting their investment projects approved.

In terms of the potential areas for investment, dealing directly with the state and region governments will likely remain the same. Off-grid power projects top the list of priorities closely followed by agriculture and infrastructure. Yangon region will focus on road construction, as the traffic situation is getting worse. Water distribution and treatment will remain a priority for bigger cities around the country, so will the road (including toll-roads) construction and other infrastructure projects. The coastal states and regions will focus on developing the coastline through building ports, factories and storage facilities, while river transportation will be another area to consider.

Finally, the new CMs being the trusted members of the NLD, will likely have more power to look for investment themselves rather than take “orders” from the union ministries. The role of the state and region governments is expected to grow and doing business with them directly just might be a very worthwhile opportunity for investors.

THE PLEDGE TO FIGHT

CORRUPTION AND BE

TRANSPARENT CAN BE

TAKEN AS A PROMISE OF

EQUAL OPPORTUNITIES

FOR ALL INVESTORS.

Parliament buildingNay Pyi Taw

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Sagaing RegionDr Myint Naing

Chin StateU Salai Lian Lwal

Magwe RegionDr Aung Moe Nyo

Rakhine StateU Nyi Pu

Ayeyarwady RegionMahn Johnny

Yangon RegionU Phyo Min Thein

Mon StateU Min Min Oo

Kachin State Dr Khet Aung

Shan StateDr Lin Htut

Mandalay RegionDr Zaw Myint Maung

Kayah StateU L Phaung Sho

Bago RegionU Win Thein

Kayin StateDaw Nann Khin Htway Myint

Tanintharyi RegionDr Lei Lei Maw

Bios of CMs

U Salai Lian Lwal – Chin State

U Salai Lian Lwal is a NLD State Hluttaw MP for Falam Constituency No.2. He holds a LLM degree from Yangon University and a post-graduate degree in religious studies. He was an active participant in Chin National Student Uprising and later worked as a government legal officer in different cities across the country.

Dr Khet Aung – Kachin State

Dr Khet Aung is a NLD State Hluttaw MP for Myitkyina Constituency No.1. He holds a B.D.S (Dental) from Yangon University of Medicine and worked as a dentist in government hospitals until 1993. After resigning from the Ministry of Health, he started his own business.

U L Phaung Sho – Kayah State

U L Phaung Sho is a NLD State Hluttaw MP for Maese Constituency No.2. He holds a degree in education and worked as a township educational officer for many years. He joined the NLD after resigning from his governmental post in 2015.

Daw Nann Khin Htway Myint – Kayin State

A daughter of the retired CM of Kayin State, Daw Nann Khin Htway Myint is a NLD State Hluttaw MP for Hpa-An Constituency No.2. She is a chairperson for the NLD’s Kayin Branch as well as a member of the NLD’s Central Executive Committee.

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Edwin VanderbruggenSenior Partner, VDB loiedwin@vdb-loi.comT: +95 137 1902 +95 137 1635www.vdb-loi.com

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Edwin’s practical and highly engaged approach makes him uniquely suited to advise foreign investors on their projects and deals in Myanmar. He and his team advise multinationals, strategic and financial investors in a wide range of sectors as well as commercial banks, development financial institutions or non-bank financial institutions.

Edwin’s strongest points are probably his deep understanding of what really works in practice locally and his strong Government relations, having regularly acted for various state-owned enterprises and Government departments. He and his team assist the Government with privatizations and corporatizations in the energy, transportation and telecommunications sectors. He has a wealth of personal experience negotiating with and providing technical assistance to the Myanmar investment Commission.

He has assisted a large number of projects from start to finish, including manufacturers in the Thilawa SEZ, power plants, mobile network operators, global beer brands, oil and gas supermajors, and infrastructure developers.

U Min Min Oo – Mon State

U Min Min Oo is a NLD State Hluttaw MP for Belin Constituency No.2. He holds a degree in electronic engineering from Yangon University and is a Vice Chairman for Belin Township’s NLD Branch. He is also head of finance for the township’s rubber plantation association and a member of the management committee for Taungzone Administrative Hospital.

U Nyi Pu – Rakhine State

U Nyi Pu has been with the NLD’s Central Executive Committee since the party was founded. He is well known as a civil activist and in the 2015 election was elected as a NLD State Hluttaw MP for Gwa Constituency No.2.

Dr Lin Htut – Shan State

Dr Lin Htut is a NLD State Hluttaw MP for Lashio Constituency No.1. A dentist by profession he lives and works in Lashio. He is a prominent member and founder of a number of non-governmental organizations as well as a government officer charged with drug reduction, and AIDS projects in Shan State.

U Mahn Johnny – Ayeyarwady Region

U Mahn Johnny is a NLD Regional Hluttaw MP for Kyonpyaw Constituency No.2. A schoolteacher by profession, he was elected as a MP in the 1990 general election and he was later elected as a Lower House MP in the 2012 by-election.

U Win Thein – Bago Region

U Win Thein is a NLD Region Hluttaw MP for Yedashe Constituency No.2. He holds a degree in Mechanical Engineering and A.G.T.I (Mechanical Tools) and works in the family’s agricultural business.

Dr Aung Moe Nyo – Magway Region

Dr Aung Moe Nyo is a NLD Region Hluttaw MP for Pwintbyu Constituency No.2. He received

a M.B.B.S degree from Yangon University of Medicine No.1 in 1982 and worked in his private clinic until 1988. He was elected as a NLD MP to the Lower House in the 2012 by-election.

Dr Zaw Myint Maung – Mandalay Region

Dr Zaw Myint Maung, a medical doctor and spokesperson for NLD, served as a lecturer in biochemistry studies at Mandalay’s Institute of Medicine and was a known civil activist. In 2009 he became a member of the NLD’s Central Executive Committee and was elected a MP in the 2012 by-election. In the 2015 election, he was elected as a Region Hluttaw MP for Amarapura Constituency No.2. He also runs a free clinic.

Dr Myint Naing – Sagaing Region

Dr Myint Naing was elected as a NLD Region Hluttaw MP for Shwebo Constituency No.2. A doctor by profession, he was also a prominent civil activist. In 2004 he became re-involved in politics and winning a seat in the Upper House in the 2012 by-election.

Dr Lei Lei Maw – Tanintharyi Region

Dr. Lei Lei Maw won a seat as a Region Hluttaw MP for Thayetchaung Constituency No.2. She holds a M.B.B.S From Yangon University of Medicine No.1 and has worked as a doctor in Yangon and Thayetchaung hospitals. She has also worked for the NLD’s free medical service since she became a NLD member in 2012.

U Phyo Min Thein – Yangon Region

U Phyo Min Thein was elected as a MP for Yangon Region Hluttaw for Hlegu Consistuency No.2. He was a prominent student activist and a member of different student unions during the 1988 uprising..He was elected as a NLD MP to the lower house in the 2012 by-election and acted as a member of a number parliamentary committees, including the parliament’s banking committee, as well as the Chairman of NLD for Hlegu Township.