Top Story: Myanmar Hosts 2013 World Economic Forum on East Asia
Top Stories:
- SAVE THE DATE: Myanmar Parliamentary Roundtable Discussion on June 11, 2013; Myanmar Business Mission July 8-11, 2013.
- Myanmar hosts 2013 World Economic Forum and first World Debate among representatives from multiple Myanmar political parties. Aung San Suu Kyi, Chairperson of the National League for Democracy, announced her desire to run for President in 2015 and pressed for amendments be made to the constitution (drafted 2008 by the military regime) that deems her ineligible for presidential candidacy based on family ties to foreign nationals. To remove this constitutional clause would require more than 75% of parliament's approval and with 25% of unelected military representatives currently in parliament, Suu Kyi faces great obstacles ahead in amending what she calls "the most difficult constitution in the world to amend"
Defense and Security
Burma: Drawing the line on military relations | The Foundry, June 6
Late last night, the House Armed Services Committee drew a line on American military relations with Burma. The committee passed an amendment to the annual National Defense Authorization Act offered by Representative Trent Franks (R-AZ) expressing the sense of Congress that “the Department of Defense should fully consider and assess the Burmese military efforts to implement reforms, end impunity for human rights abuses, and increase transparency and accountability before expanding military-to-military cooperation beyond initial dialogue and isolated engagements.” This is a matter of accountability regarding both developments on the ground in Burma and the Administration’s Burma policy.
War, displacement fueling trafficking scourge in Kachin state | DVB, June 6
After two years of war and displacement in northern Burma’s Kachin state, more people are being trafficked along the Sino-Burmese border, according to a report published by the Kachin Women’s Association-Thailand (KWAT) on Wednesday. In “Pushed to the brink”, KWAT documented 24 instances of individuals who were trafficked after the Burmese military ended a 17-year ceasefire and launched an offensive against the Kachin Independence Army (KIA) in June 2011. According to KWAT, the documented cases in the report “represent only a small fraction of the actual trafficking cases” that have occurred since hostilities erupted. “We wanted to highlight to the international community that economic hardship leads to an increase in human trafficking,” said Sai Shang, KWAT general secretary, during an interview with DVB.
Myanmar border the front line in China’s drug fight | ABC, June 5
In March, Chinese state media reported the execution of Burmese drug lord Naw Kham as proof rampant crime in the border region was being taken seriously. The border itself is more than 2000 kilometres long, most of it mountainous and remote, making border security a difficult job. The city of Ruili, which lies on the the border, is notorious as a haven for sex and drugs. "Whenever I ask friends to visit me here, they say they only dare to go to the provincial capital Kunming," one local said.
Economics
Hard Work begins in Myanmar's quest for foreign investment | Reuters, June 10
In a cramped auditorium in Myanmar's capital, pro-democracy champion Aung San Suu Kyi had a message for the world's business elite: her country is teeming with foreign investors scouting for opportunities in one of Asia's final frontier markets, but not many are actually investing. Interviews with foreign and local business leaders on the sidelines of last week's World Economic Forum in the Myanmar capital, Naypyitaw, show why. Shoddy infrastructure, opaque regulations, red tape, recent bouts of sectarian violence and lingering uncertainty over U.S. sanctions are hampering large-scale foreign investment in the country, strategically nestled between India and China.
Myanmar uses global forum to spotlight tourism goals | NationMultimedia, June 8
Last Wednesday, Myanmar's hotel and tourism minister outlined his country's tourism vision at the World Economic Forum in its capital city Nay Pyi Taw. The next day, his staff were in Bangkok to promote Myanmar's unspoiled attractions, from white-sand beaches to historical religious sites, at "Thailand Travel Mart 2013 Plus" (TTM+2013) held by the Tourism Authority of Thailand. The two efforts seem very meaningful for the newly opened nation. It is clear that the country is moving its tourism industry forward, considered one of the first priorities to drive economic prosperity and eliminate poverty. "Absolutely, the World Economic Forum held in Myanmar has helped us promote our tourism industry on the global stage,'' Phyu Phyu Mar, of the Myanmar Tourism Promotion Board, said at the TTM, where her country's presentation got a warm welcome from foreign media.
Microsoft forms partnership in Myanmar | WSJ, June 6
Microsoft Corp. on Thursday established a presence in Myanmar for the first time, forming an exclusive partnership with local firm Myanmar Information Technology as the central supplier for all of its products in the emerging market. The move represents the "first step" in Microsoft's plans for the market, with the company focusing on distributing its products rather than any manufacturing operations, Jamie Harper, president for new markets in Southeast Asia at Microsoft, said in an interview on the sidelines of the World Economic Forum on East Asia. "All infrastructure in the country depends on computing power," said Mr. Harper, who sees opportunities for Microsoft in Myanmar's large government sector and in business-to-business operations.
Reforming Myanmar courts investors at “Asia’s Davos” | BusinessRecorder, June 6
Myanmar touted its dramatic post-junta reforms Wednesday in a bid to entice foreign investors as hundreds of world leaders and industry chiefs visited the long-isolated nation for Asia's edition of the World Economic Forum. Some 900 delegates from more than 50 countries gathered in the capital Naypyidaw for the three-day WEF on East Asia - a regional version of the annual gathering of business and political luminaries in the Swiss resort of Davos. Foreign firms are queuing up to enter the country formerly known as Burma, tantalized by the prospect of a largely untapped market with a potential 60 million new consumers in addition to Myanmar's pool of cheap labor.
Energy
Myanmar as Economic Miracle hinges on Natural Gas Bounty | Bloomberg, June 7
Myanmar’s opening to foreign investment has been compared to the fall of the Berlin Wall and the start of an economic growth story to emulate Vietnam. How those views pan out will be largely decided by natural gas. Exxon Mobil Corp. (XOM), Woodside Petroleum Ltd. (WPL) and Oil India Ltd. (OINL) are among 59 global energy companies lining up for a share of Myanmar’s estimated $75 billion bounty of the fuel, according to the country’s energy ministry. While oil and gas have been pumped for decades, investment largely dried up during almost five decades of military rule that ended in 2012.
Myanmar to use new hydrocarbon production for domestic needs | Livemint, June 6
In what may affect the energy security plans pursued by India and China in Myanmar, the resource-rich nation has made a precondition of its domestic demand being met before any exports are allowed. This will be incorporated in all future production-sharing contracts Myanmar plans to sign.
“Earlier natural gas was sold to the neighbouring countries as there was no significant domestic demand. Our new policy is that natural resources will be reserved for domestic demand. If there is a surplus, then we will value add and export. The idea is to meet domestic demand first,” U Htin Aung, Myanmar’s deputy energy minister, said at a press conference on Thursday.
Myanmar scraps two hydroelectric projects planned with India | Livemint, June 6
In what may dampen New Delhi’s economic diplomacy initiative to engage Myanmar, the South-East Asian nation has scrapped two hydroelectric projects that were being planned with India’s assistance at Tamanthi and Shwezaye on the Chindwin river in Myanmar. In a recent communication to the foreign ministry, Myanmar has said that since the social effects associated with the resettlement of people on account of these projects would be high, it didn’t want to pursue them, according to several people aware of the development. Also, proposed tariffs from the projects were exorbitantly high, according to the Myanmar government. Indian state-owned power utility NHPC Ltd had prepared detailed project reports for the proposed 1,200 megawatts (MW) Tamanthi and the 880MW Shwezaye projects.
Financial Services
Myanmar Is Closer to Autonomous Central Bank | WSJ, June 9
Myanmar appears close to attaining a status symbol valued by investors around the world—an independent central bank. Khin Saw Oo, deputy director of the central bank's regulation and anti-money-laundering department, said in an interview that she was sure the country's president Thein Sein, would sign a new law to create an autonomous central bank before the next parliamentary session concludes at the end of July. In a later email, she stepped back from that time frame, saying only that she believed it would be signed "very soon." At the moment, the central bank is a department of the Finance Ministry, which can influence monetary policy and instructs the bank to print money to pay off its debts—considered an inflationary no-no among monetary-policy experts.
Can Myanmar fix its outdated banking system? | CNN, June 7
When Nyein Chan Aung sold his house in Yangon recently he faced a dilemma -- what do to with the proceeds. Did he he take his cash to the bank or keep it at home? He compromised. A third went to the bank, the rest stayed where he lives. In fact, the only reason he deposited anything at all was fear of a house fire. This is banking in Myanmar, circa 2013. An outdated and debased system, open for decades to abuse by the previous regime, and shunned by about 90% of the population. People here completely bypass the banks and keep their money at home. It's the closest thing you'll find to a total cash economy anywhere in the world.
Food and Agriculture
Myanmar predicted to become major rice exporter in 2015 | StraitTimes, June 10
Myanmar is set to become one of the world's leading rice exporters with 3 million tonnes in 2015, a report has said. The Kasikorn Research Centre said Myanmar has potential to increase rice production to 2.67 tonnes per hectare this year compared to 2.35 tonnes in 2011, Thai News Agency (TNA) reported. Target import markets for Myanmar's rice include Indonesia, Malaysia, Philippines and Japan. However, the report said more than 80 rice mills in Myanmar are currently undersized with farming technology under-utilised.
US Chemical Firm sets sights on Myanmar agriculture | Mizzima, June 10
DuPont's net sales totalled US$34.8 billion last year, of which 34% came from emerging markets. Agriculture contributes the greatest share of company revenue, $10.4 billion last year, up from $9.17 billion in 2011. Half the company's agricultural sales are outside the US. Despite ongoing problems in Myanmar's farm sector, particularly in terms of access to funding, Mr Vaidya said he is optimistic about the country's future, as he believes the government is capable of solving its problems. "Asean in general is a big opportunity. We are confident and will continue to invest in the region," Mr Vaidya told theBangkok Post on the sidelines of last week's World Economic Forum on East Asia. More than 10 billion farmers in Asean and South Asia benefit from scientific methods in terms of product yield and agribusiness improvements, said Mr Vaidya.
Foreign Affairs
Foreign Boost for Myanmar’s Youth | TheNation, June 10
Myanmar is open for business, but it needs local and international help to train and educate its people, a panel told participants at the World Economic Forum on East Asia in Myanmar last week. "We are ready to help," said Hiroto Arakawa, vice-president of the Japan International Cooperation Agency (JICA). Japan and India are among countries at the forefront of this, with the JICA signing a US$500 million grant. The grant will be for "quick-fix type power projects" in the Yangon area and education and other development programs among the country's ethnic groups. Japan will also provide loans to build infrastructure in a new special economic zone in Myanmar and open a vocational training center in August. Myanmar's opposition leader Aung San Suu Kyi has called for quick wins in vocational training.
Myanmar, ASEAN stand to gain from enhanced profile | ChannelNewsAsia, June 8
The current spotlight on Myanmar has helped to draw attention to the Association of Southeast Asian Nations (ASEAN) as a grouping. Participants at the recently-concluded World Economic Forum (WEF) believe both Myanmar and ASEAN will stand to gain from this enhanced profile. Myanmar's President Thein Sein had repeatedly made the pitch at the WEF about how his country is open for business. Many have also heard of where the pockets of investment opportunities are in the country of 60 million people. Neighboring ASEAN members are also hoping to share a little limelight with Myanmar.
Information and Communications Technology (ICT)
Myanmar diary: A time capsule with a Wi-Fi Connection | LiveMint, June 5
My first impression of Myanmar, after landing in Yangon, was that it was like India in the 1980s, before the automobile revolution inspired by Maruti Udyog Ltd. Replace the Ambassador and the Fiat, the relics of another era, with imported second-hand Japanese vehicles—unlike what the guidebooks say, the vintage versions have been replaced by newer imports—taking advantage of an inverted duty structure that works against the manufacture of these vehicles domestically (why does that sound familiar?). Traffic jams are routine, but what is absent is the incessant honking that India’s metros, particularly Delhi and Mumbai, have taught us to expect. The Burmese are patently patient. Then, on a lighter note, four decades of military rule does seem to have done its bit for anger management.
Infrastructure
ADB to fund NE-Myanmar linking highway project | EconomicTimes, June 10
The Asia Development Bank (ADB) is ready to fund a highway project that will connect India's North-East to Myanmar. The proposed network that will link Agartala, Silchar, Imphal and Moreh with Myanmar, is in line with India's Look-East policy and part of a strategic move to curtail China's dominance over South-East Asian countries. The highway project assumes significance as commerce minister Anand Sharma, in his just concluded three-day visit to Myanmar, has set a bilateral trade target of $3 billion by 2015. Total trade last year between India and Myanmar stood at $1.87 billion. The road ministry is expected to soon launch a bus service from Moreh in Manipur to Mandalay in Myanmar, and the Centre is developing an integrated check-post in Moreh that will ease the movement of goods and services across the borders of the two countries.
Looking for transformation in Myanmar | CNN, June 6
Around seven years ago, a sparse tract of land north of the cluttered chaos of Yangon was anointed Myanmar's new capital by the country's former military leaders. Buildings were hastily erected in the new city of Naypyidaw to cater to an influx of arrivals, and later dozens of hotels moved in to meet demand for foreign visitors. These hotels sit one after the other on the sides of an eight-lane highway lined with newly planted trees. They are all but full this week as more than 900 guests bed down for two days of talks around the typically wordy World Economic Forum theme of "Courageous Transformation for Inclusion and Integration."
Myanmar Diary: The rule of law | Livemint, June 6
In the last three years, the Parliament of Myanmar has passed 92 laws. Of them, 50 were spanking new laws and 42 legislations were amendments to existing laws. In unambiguous terms, the Parliament has demonstrated its commitment to the rule of law—as opposed to martial law.
For nearly 50 years, the only rule that the people of Myanmar knew was that proffered by the army. But three years ago, the seeds of change were sown when the country held a by-election to replace 45 members of Parliament (all of them joined government and under the Constitution they automatically lose their legislative seat). The election was swept by the National League for Democracy (NLD) led by the charismatic Aung San Suu Kyi.
National Affairs
Burma: What Future? – The BBC World Debate | BBC, June 7
A World Debate recorded from Nay Pyi Taw, in Burma, during the World Economic Forum on East Asia. Presenter Nik Gowing is joined by Nobel Peace prize winner Aung San Suu Kyi, and U Soe Thane, one of Burma's leading reformist ministers in the President Office, as well as Burmese activist Zin Mar Aung, a former prisoner who spent 11 years in jail and received the Award for International Women of Courage from Secretary of State Hillary Clinton. As the country goes through major political and economic reforms, the panel will be discussing the future of Burma, the opportunities and challenges facing the people
House Speaker Shwe Mann airs presidential ambitions |Irrawaddy, June 7
Burma’s Lower House Speaker Shwe Mann told The Irrawaddy on Friday that he is interested in succeeding President Thein Sein in 2015. “Yes, I would like to,” Shwe Mann said when asked about the position. However, the chairman of the governing Union Solidarity and Development Party (USDP) cautioned that any prospective president must first win the backing of Burma’s voters and his or her own party. “That depends first on our party and our people,” he added, referring to his own presidential prospects. Burma’s president is elected by the country’s parliamentarians and therefore will likely come from whichever party wins the next national elections, also scheduled for 2015. It looks increasingly likely that either Shwe Mann or opposition leader Aung San Suu Kyi will be Burma’s next president, after the Nobel laureate Suu Kyi reiterated on Thursday that she too wants the job.
Myanmar’s Suu Kyi tells business, political leaders she wants to become president | WashingtonPost, June 6
In her clearest statement yet of her political ambitions, Myanmar opposition leader Aung San Suu Kyi told international business and political leaders on Thursday that she hopes to become her country’s next president. Delegates attending the Asian edition of the World Economic Forum in Myanmar’s capital heard visions of the country’s future from Suu Kyi and from the other key figure transforming it today, President Thein Sein. More than 900 people from 50 countries are attending the meetings. The official themes of the conference are regional inclusiveness and integration, but the focus is on host country Myanmar and its political and economic transformation.
Myanmar’s Aung San Suu Kyi walks fine line in her new role | NPR, June 5
To her many admirers in the international community, Aung San Suu Kyi remains one of the world’s best known democracy icons. But in Myanmar, she is now very much a politician who is being criticized for trying to cooperate with the former military rulers who kept her under house arrest for nearly two decades.
If you want to see the old, iconic Aung San Suu Kyi, just head to the bustling headquarters of her party, the National League for Democracy, or NLD, in Yangon, the country’s largest city and former capital. Go past the tables selling Suu Kyi T-shirts, coffee mugs and calendars. There she is, looking down at you, steely defiant. The captions read: “There will be change, because all the military has are guns”.