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The better the question. The better the answer.�
The better the world works.
Will your legacy include Timor-Leste?
It’s time for purpose-led
companies to explore
investment and business
opportunities in the country
Page 2
EY’s Timor-Leste Investment Guide
► Why?
► How?
► What?
EY’s Timor-Leste Investment Guide
Hadia negosiu iha mundo ne'e atu sai diak liu tan
Page 4
Why?
► We believe in the value proposition:
► A young, persevering, tenacious people
► Natural resources (including mostly unscathed
landscapes)
► Access to regional and global markets
► A vast Timorese network outside the country:
► Young qualified talent + access to business
networks
► Competitive tax regime
► USD as currency
EY’s Timor-Leste Investment Guide
<24 yrs
Page 5
Why?
We believe in the direction:
► A democratically-reinstated nation, hanging to
democracy as a source of progress
► A business-oriented Government, with a long term
vision of sustainable growth
► A coordinated, focused and ambitious Reform Plan
► A strong defense of gender equality, supporting the
role of women in society and in the economy
EY’s Timor-Leste Investment Guide
Page 6
Why?
We believe in the moment:
► Robust track-record, with growing interest from
investors, but still presenting first-mover advantages
► Ongoing effort to modernize the public administration
to develop a business-enabling environment
► Continuous investment to grow institutional strength is
paving the way for stronger regional and global
economic integration
EY’s Timor-Leste Investment Guide
Page 7
Why?
► In preparing the Guide:
► We provide our clients with better
insights on the opportunities
available
► We give added visibility to Timor-
Leste’s attractiveness factors,
increasing the potential for new
investments
► We are coherent with our
purpose of building a better
working world
EY’s Timor-Leste Investment Guide
Page 9
How?
► Using EY’s experience in
Investment Location Advisory
Services:
► Supporting companies in their
quest for the most attractive
locations
► Working with Governments to
assess and promote
attractiveness
EY’s Timor-Leste Investment Guide
Page 10
How?
► Desk research:
► Benchmarking other countries in the region
► Working with Timor-Leste’s Government:
► With ongoing support from TradeInvest Timor-Leste and MECAE
► Consulting other entities and Ministries involved in the preparation of
reforms that will impact the business environment
► Consulting with companies present in the market:
► Seeking testimonials from foreign investors already in the country or in the
process of settling in
EY’s Timor-Leste Investment Guide
Page 12
Attractiveness Factors: Natural Resources
► Oil & Gas and other mineral resources
► Preserved natural landscapes
► Organic farming: coffee and other niche products
► Sea resources: fishing and aquiculture
► One of the youngest populations in the world
EY’s Timor-Leste Investment Guide
Page 14
Attractiveness Factors: Reform Program
EY’s Timor-Leste Investment Guide
Area of Reform Objective(s)
1 Land and property
registry
To secure ownership rights, enabling lending against
collateral and resulting in more private investment
2 Develop economic
infrastructure
Secure adequate supply of water, sanitation and
electricity; drive logistic efficiency in the transport of
people and goods
3 Labor Law and
workforce
qualification
To create an efficient labor market and match skills to
market needs
Page 15
Attractiveness Factors: Reform Program
EY’s Timor-Leste Investment Guide
Area of Reform Objective(s)
4 Business
environment reform
To improve business competitiveness, improving the
country’s position in the Doing Business ranking
5 Tax Reform To secure additional tax collection while improving
budgetary allocation and spending
6 Private investment Provide adequate support of investors from the
investment promotion agency
7 Private sector
promotion To promote entrepreneurship and job creation
Page 16
Attractiveness Factors: Tax regime
► Lowest corporate
income tax in
Southeast Asia
► Tax exemptions
available to
investors 0
5
10
15
20
25
30
35
Corporate Income Tax - % Benchmark ASEAN & Timor-Leste
Page 17
Attractiveness Factors: Regional and Global integration
► ASEAN – persistency and investment
continue to pave the way to complete
accession program:
► The process alone is generating benefits for
businesses
► Full accession would added global visibility
► CPLP – full-fledged membership provides
privileged access to markets in 4
continents
EY’s Timor-Leste Investment Guide
622 m
2.6 tr
20
14
GDP
260 m
2.8 tr
20
13
GDP
AS
EA
N
CP
LP
Page 19
Challenges
► A lot is happening, simultaneously: keeping the pace of reforms will
be very demanding, requiring a strong project management effort
► The aspirations of the younger generations tend to evolve faster
than policies deliver results: they must be a part of the solution –
school enrollment incentives, vocational training, entrepreneurship
► Compliance may introduce complexity: investment-related policies
must be led by a focused and agile group, that never stops
listening to investors and that can actively champion their interests
before other public entities
EY’s Timor-Leste Investment Guide
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About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
© 2016 Ernst & Young S.A. All Rights Reserved.
SCORE EYG no.
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
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