Top Story: Myanmar Assures it is Ready to Host ASEAN in 2014
Top Stories:
- Invitation: The Council’s annual Myanmar Business Mission will be held from July 8-10. The mission will visit both Yangon and Naypyitaw, and will include a confirmed meeting with President Thein Sein. For more information, contact Anthony Nelson at anelson@usasean.org
- After a year of slow growth in investment during which Myanmar attracted about the same FDI as Laos, foreign companies are beginning to make commitments. The Myanmar government’s focus is on supporting employment-heavy projects such as manufacturing while they work to develop tangible quality of life projects such as increased mobile phone penetration. The Mission will focus on continuing to build relationships and connections with key business, government, and civil society leaders in Myanmar, while advocating for Myanmar to fulfill its commitments on key issues like the New York Convention and EITI, and supporting continued transparency in the development of legislation.
Economics
Coca-Cola to expand Myanmar factory in 2013 | Eleven, June 16
Giant soft-drink producer Coca-Cola, which recently re-entered Myanmar, is planning to expand the production lines in its Myanmar factory before the end of this year, said Aung Win, Commercial Director of Pinya Manufacturing Co. Ltd. Coca-Cola is a joint venture with Pinya Manufacturing Co. Ltd from Myanmar. “At present, our production line is short. If we manufacture a product, we have to halt another product. So we will expand the factory and we are negotiating how many production lines should be expanded,” Aung Win explained. World famous soft-drink and beverage producer, Coca-Cola will invest US$200 million in Myanmar. It will create more than 20,000 jobs, according to Coca-Cola on June 4 when they launched their products in Myanmar.
Advertisers in Burma “Can’t Bill It as a Gold Rush” | Irrawaddy, June 10
Much coverage of Burma’s “frontier market” has focused on sectors such as natural resources, telecommunications and manufacturing. Some of the world’s biggest and best-known companies—such as Coca-Cola, Pepsi, Microsoft and Unilever—have in recent months put their money into Burma, or pledged to, after Western sanctions were eased or lifted in response to reforms in the one-time army-ruled country. One sector that hasn’t received as much attention is the nexus of public relations, marketing and advertising, which is, or will be, bound up with the companies and sectors that want to market and sell their wares in Burma or set up shop making goods in the country’s low-wage economy. But one media company that has come to Burma is London-based WPP—the world’s biggest advertising conglomerate, which owns a number of well-known PR, advertising and market research firms. WPP-owned Ogilvy, JWT and TNS are already operating in Burma and count some of the country’s biggest companies as clients.
In Myanmar, Flirtations by Investors Turn into Commitments | NYTimes, June 7
Foreign executives who flew into this dirt-poor country over the past year to tap into what is described as Asia’s last major frontier market often came away skeptical, befuddled or outright disappointed. “Look, listen, learn — and leave” was the catch phrase that described trips here by executives who saw first-hand the lack of electricity, terrible roads, eager but very undereducated work force and overwhelmed government officials. Now, two years after Myanmar’s civilian government came to power, the country appears to be moving into another stretch of its journey from military dictatorship to democratic market economy. Flirtations by foreign investors are turning into commitments, vague promises into dollars.
Burma Benefits From Foreign Investment Drive | Sky, June 7
In their trademark maroon robes and with their heads shaved, a line of monks walk along a sodden and potholed back lane in Rangoon. They collect donations of rice from each house they pass. One of the monks rings a bell, signaling their presence. The rain pours down. This is Burma's rainy season. Tradition is still well ingrained in this country. Much of Rangoon, Burma's old capital city, is still stuck in time after half a century of military dictatorship. Old colonial mansions sit derelict behind once-grand gates along the city's streets. Some are almost entirely obscured by the vivid green foliage which hasn't been cut back for decades. But two years have now passed since the generals took off their uniforms and turned towards a democracy of sorts.
Burma must make economy boom for all, says Oxfam | Telegraph, June 5
Burma's government must make sure its expected economic boom does not just benefit the privileged minority, Oxfam has warned, ahead of the opening of the East Asia World Economic Forum. On Thursday, President Thein Sein will inaugurate the conference and is scheduled to share the stage with the prime ministers of Laos and Vietnam to discuss opportunities for development in Asia. It is the first time that Burma (Myanmar), on the back of the far-reaching reforms of the past three years, has held an international conference of its size and importance. Oxfam has published a report stating that, while Burma’s political reforms are likely to yield unprecedented economic expansion, "the benefits of new investment will filter down to only a few, leaving small-scale farmers – the backbone of the Burmese economy – unable to benefit from this growth".
Energy
Renewal Energy in Myanmar: Not Just Clean, It’s Necessary | Renewableenergyworld, June 18
Myanmar is blessed with an abundance of natural resources and a youthful workforce, but with many of its people living in extreme poverty, the newly opening economy is attracting the interest of investors and aid workers alike. In the middle of the fastest growing region in the world, East Asia, Myanmar holds great promise as the next big market. Growth rates have exceeded 5 percent since 2010 when the country released human rights icon Aung San Suu Kyi and held elections, and 8 percent growth rates are within reach. McKinsey analysts estimate that Myanmar could quadruple its GDP by 2030 to US$200 billion.
Energy seen as pressuring issue for Myanmar | ChannelNewsasia, June 17
Major international energy players are eyeing the opening up of Myanmar's largely-untapped oil and gas sector. The country is putting up for tender 30 unexplored oil and gas blocks off its coast and it has attracted interest from companies looking to diversify their energy sources. Major international energy players are eyeing the opening up of Myanmar's largely-untapped oil and gas sector. The country is putting up for tender 30 unexplored oil and gas blocks off its coast and it has attracted interest from companies looking to diversify their energy sources. But even as the Myanmar government seeks to unlock its energy resources, it also needs to ensure a constant supply of power to its people.
Burma Offers New Microloans to Poor Farmers, Factory Workers | Irrawaddy, June 5
Workers and farmers in Burma will be offered loans in a new scheme proposed by President Thein Sein on Sunday in an attempt to alleviate hardship in Asia’s poorest country. Working class people in Burma have few assets which can be used as collateral by banks, meaning they often have to rely on predatory loan sharks, ending in a cycle of debt. The President made the announcement at a public meeting at Rangoon’s Thuwanna Stadium on Tuesday, promising to work to make life better for the roughly 70 percent of the population who depend on subsistence agriculture and farming-related manual labor jobs.
Food and Agriculture
Myanmar’s Rice Market – A Brighter Future? | Myawady, June 13 (Note: This summary was translated from the original Burmese version)
Myanmar’s Trade Minister U Win Myint, earlier today, talked about how rice is a major source of plantation in Myanmar, and since a majority of farmers have to rely solely on its distribution, the selling price of rice (both for international exports and local sale) needs to be once again regulated . He also added that a majority of current rice exports are contents of 25% of the low quality products and that he is keen to better internationalize this market by exporting better quality products in the near future. With that, he encouraged international corporations to look into forming business partnerships with local businesses. Tom Slayton, an expert from the World Bank, presented his views on the future possible outcome of the rice market and stressed on the increasing demand for rice around the world.
Foreign Affairs
Myanmar, Thais to vet Rohingya on port of origin | Mizzima, June 17
The Myanmar government will next week begin a screening process to determine where about 2,000 Rohingya migrants now being sheltered in Thailand came from, Foreign Minister Surapong Tovichakchaikul says. Mr Surapong said his Myanmar counterpart Wanna Muang Lwin had informed him that Nay Pyi Taw had set up a working group, led by Myanmar ambassador to Thailand Myo Tint, to begin examining the origins of the Rohingya next week. The ministers met for bilateral talks on the sidelines of the Forum for East Asia-Latin America Cooperation (Fealac) in Indonesia yesterday. The Myanmar move to deal with the Rohingya problem in Thailand was the result of earlier talks between the two in Brunei's capital Bandar Seri Begawan on the sidelines of the Asean Ministerial Meeting on April 10-11.
Myanmar’s old friend China is left wondering where it went wrong | FT, June 17
In the surreal Burmese Capital Naypyidaw it’s hard to miss the gleaming convention centre built by a Chinese state-owned construction company and donated to the military junta a few years ago in a gesture of bilateral amity. But earlier this month, as more than 900 executives from across the globe gathered in the complex for Burma’s first ever World Economic Forum, the Chinese presence was conspicuously absent. According to the official WEF list, only 16 participants were from mainland China. For decades after the founding of the People’s Republic, American foreign policy was obsessed by the question of “who lost China?” Today in Beijing the question being asked by Chinese mandarins and Communist party luminaries is “who lost Burma?”
Myanmar assures it is ready to host ASEAN 2014 | JakartaPost, June 17
Myanmar’s preparations for the ASEAN chairmanship in 2014 have been going well as the country is set to host the group’s series of meetings for the first time next year. Myanmar's Ambassador to Indonesia, Min Lwin, said that logistics and infrastructure for the chairmanship were almost ready. “Now we have to think about the small and fine points. In September, everything will be perfect,” he said. During the ASEAN Summit in Jakarta in 2011, Myanmar officially lobbied to be named the ASEAN chair in 2014 instead of 2016, swapping with Laos. Some ASEAN members were reluctant, concerned that Myanmar’s tenure in 2014 would hamper ASEAN’s target of becoming a fully fledged community by 2015.
Getting Access to Myanmar, via Singapore | WSJ, June 17
With high-profile investors like Jim Rogers and George Soros showing a keen interest in Myanmar, it may be time for risk seekers to gain exposure. While Myanmar continues to face headwinds on multiple fronts, the World Bank said in a report in January that the resource-rich country “is already seeing increased trade and investment from the wider international community,” after decades of international isolation. This is reflected in the World Bank’s 2012-2013 Myanmar GDP growth forecast of 6.3%, which compares with 5.5% growth for the 2011-2012 period. Among changes expected to support growth in Myanmar, brokerage DBS Vickers highlights revised foreign investment laws aimed at enticing foreign investors, employment provisions within the foreign investment laws to ensure that Myanmar workers are not left behind, and developments in the country’s infrastructure.
Myanmar to take foreign tenders for project | News, June 16
MYANMAR (Burma) will accept tenders from foreign companies for its ambitious "mega city" project in northern Yangon, an official says. "Tenders from both local and foreign companies will be called soon," said an official at the Yangon City Development Committee's city planning and land administration department. "These tenders will be for the construction of buildings such as hotels, shopping malls and housing projects in Mayangone township within three years," said the official, who asked to remain anonymous. The development of 162 hectares in Mayangone township in northern Yangon is part of the Myanmar government's Greater Yangon Strategic Development Plan, which is receiving technical assistance from the Japan International Cooperation Agency.
Information and Communications Technology (ICT)
Burma Press Council Opposes Government public service media draft law | Asiantribune, June 10
Deputy Information Minister of Burma, Ye Htut explained the purpose and nature of public service media draft law, publication of the draft law for public knowledge, plans for transformation of State owned media into public service media, at Printing and Publishing Enterprise on 8 June, 2013, in Rangoon, The New Light of Myanmar said Sunday. With the support of International Organizations including UNESCO and local and foreign experts, media transformation was put into operation together with the preparation of people-centered public service media, the deputy minister said. According to deputy minister Ye Htut, the PSM has basic principles of representing all citizens. It will be permitted arranging different views and interests within the society, informing true and reliable news and presenting high-quality program, editorial independence, financial independence, contribution to ground-breaking and qualified human resources, professional accountability, and strategic cooperation with other organizations, he said.
Burma’s Tech Sector Not Yet Up to Speed for Foreign Investment: Intel | Irrawaddy, June 7
Burma’s small but growing coterie of tech entrepreneurs will likely have to wait some time before attracting significant seed money from abroad, according to the head of Intel’s venture capital wing. “Myanmar does not yet have a venture capital ecosystem,” said Intel Capital president Arvind Sodhani, after announcing US$16 million worth of investments in India and Singapore at the World Economic Forum (WEF) gathering of chief executives and regional political leaders, which finishes today in Burma’s grandiloquent capital, Naypyidaw. Sodhani added that Burma’s legal framework was not up to speed with what investors required when considering putting money into promising local start-ups. Echoing concerns made elsewhere about the need to improve Burma’s energy and communications infrastructure, he said poor Internet connectivity in the country made it difficult for tech-based companies to function.
Infrastructure
Myanmar Unveils “Master Plan” to Boost Tourism | VOANews, June 5
Burma's government has unveiled a new "master plan" for its growing tourism industry, in the hopes of attracting more foreign visitors to the rapidly changing country. Foreigners have already begun flocking to the once-isolated Southeast Asian nation, which has made a series of unexpected political and economic changes since its military leaders handed power to a nominally civilian government in 2011. Government officials hope the new tourism plan can carry on that momentum and help improve Burma's tattered economy, which has suffered from years of mismanagement and international sanctions.
National Affairs
2 Arakan Political Parties to Unite | Irrawaddy, June 17
Two leading political parties in west Burma’s Arakan State have agreed to unite as one party, the Arakan National Party (ANP). The Rakhine Nationalities Development Party (RNDP), which won 34 seats in Parliament in 2010, plans to merge with the Arakan League for Democracy (ALD), a popular party which re-registered last year after being outlawed by the former military regime, party leaders announced on Monday. “We have long been enthusiastic about uniting,” ALD deputy chief Kyaw Myint said at a press conference in Rangoon, Burma’s biggest city. “This agreement will be remembered in history, as we abandon our mother parties and unite as one for the entire Rakhine people,” he said, referring to the Arakan ethnic minority group which is also known as Rakhine.
Yangon’s “Minchaung Kan” evictions drew widespread criticism | Eleven, June 17
Hundreds of families were made homeless on June 13 after the military forcibly evicted 200 households in the Thingangyun Township in Yangon, leading to widespread criticism from civil-society. Over one hundred troops were mobilised from the Yangon regional command in the early hours of last Thursday to destroy the houses in Michaung Kan Area 1 and 2, leaving entire families - including children and the elderly - out on the street. Some families have been relocated to Dagon Myothit (East) Township on Sunday while others have found shelter in a Buddhist ordination Hall near the destroyed area. The authorities have threatened to sue any families refusing to leave. “I’ve been living here for 13 years. Now they destroy us all at once. This is unfair,” said tenant farmer Soe Min Khaing.
Ruling party says “coalition govt” with Suu Kyi-led NLD is likely | Eleven, June 15
The leader of Myanmar’s ruling party has said they will likely to form a coalition government with Aung San Suu Kyi-led National League for Democracy (NLD) after the elections in 2015. Ruling Union Solidarity and Development Party chairman and Lower House speaker Thura Shwe Mann told the AP during his visit to the United States on Thursday. A Myanmar parliamentary delegation headed by Thura Shwe Mann kicked off the US visit on June 8 at the invitation of the Speaker of the US House of Representatives. Shwe Mann also said his party is cooperating with NLD leader Aung San Suu Kyi. When asked the likelihood of the coalition, he said it was too early to say, but it could be.
A Myanmar in Transition Says Little of Past Abuses | NYTimes, June 14
The former head of military intelligence, once feared and loathed for the torture his agents inflicted, now runs an art gallery. Myanmar’s former dictator, U Than Shwe, is reportedly enjoying a peaceful retirement in a secluded compound, while family members who grew rich during his military rule live luxurious lifestyles that contrast with the crippling poverty that afflicts most of the country. And a former top general in what was one of the world’s most repressive governments, U Thein Sein, is president, hailed both inside the country and abroad as a great reformer. He has been nominated for the Nobel Peace Prize. To the outside world, Myanmar’s transition from military rule to fledgling democracy can appear jarringly forgiving.