Top Story: Myanmar Approves Long-Awaited Telecoms Bill
Looking Ahead:
- U.S. State Department Deputy Coordinator for Sanctions Policy David Mortlock will visit Myanmar and Thailand the week of September 23rd. The Council is soliciting member input on the effects of remaining U.S. sanctions and reporting requirements on your business. To provide input or request a meeting with Mr. Mortlock, please contact Anthony Nelson at anelson@usasean.org.
- The Myanmar US Chamber of Commerce will hold a seminar on “Business Connections in Myanmar” on October 15th in New York. The seminar will have a particular focus on hotels, tourism, and light manufacturing including garments. Further information can be found here.
- Johns Hopkins SAIS will hold a conference entitled: Myanmar- The Dynamics of Positive Change on September 23rd in D.C. The conference will focus on the dynamics behind, and the likely effects of, the recent, broad socio-political and economic changes in Myanmar on the peoples of that country. To RSVP, please click here.
Myanmar’s Parliament Passes Telecoms Bill
On August 29th Myanmar’s parliament passed the long-awaited telecoms bill, which is currently pending approval and signature from President U Thein Sein. A copy of the bill has not yet been made public, however Burmese officials have previously indicated to the Council that the new text would be at least 80% different from the widely shared earlier draft. On June 27th Telenor of Norway and Ooredoo of Qutar were awarded the two international licenses. Recently, Telenor announced it will invest less than $2 billion in its Myanmar operation while Ooredoo plans to invest $15 billion. Myanmar officials have stated that they issued the licences with the goal of increasing teledensity from under ten percent to eighty percent by 2016.
Companies Act Next on Myanmar’s List for Revising
The Ministry of National Planning and Economic Development will begin the process of rewriting the nearly 100 year old Companies Act, with the aim of completing the revision by the end of 2014. The Asian Development Bank will provide assistance aimed at ensuring the new Companies Act will reflect procedural and technological advancements, such as online company registration. A key adjustment will be to develop precise criteria to label a company foreign or domestic based on management and the makeup of the board. A goal of the revision will be to bring Myanmar company registration up to international standards, making finding a partner easier for foreign firms, who have often had difficulty finding complete information on domestic Myanmar companies. Analysis suggests the new law could increase the number of joint ventures by allaying the fears of domestic firms of being held to laws directed at foreign companies. Additionally, the Burma Special Companies Act of 1950, differentiating private and public companies, may also be updated and included in the a new Companies Act.
Economics
Foreign Investment in Myanmar Up 24 pct in 4 Months of FY 2013-14 | Mizzima, August 23
Contracted foreign investment in Myanmar amounted to 1.77 billion U.S. dollars in the first four months (April-July) of the fiscal year 2013-14, up 26 percent or 0. 37 billion dollars, an official said here Friday. Of the total,, Japan injected 0.18 billion dollars into five enterprises, accounting for 10 percent, said U Aung Naing Oo, director general of the Directorate of the Investment and Company Administration (DICA) under the Ministry of National Planning and Economic Development. Contracted foreign investment in Myanmar from 32 countries and regions hit 42.95 billion dollars between 1988 and the end of July 2013, according to the latest official figures. China took the lead with 14.188 billion dollars, accounting for 33.04 percent of the total foreign investment, followed by Thailand (9.979 billion dollars), China's Hong Kong Special Administrative Region (6.404 billion dollars), Britain (3.045 billion dollars), South Korea (3.018 billion dollars), Singapore (2.358 billion dollars) and Malaysia (1.034 billion dollars). Sectorally speaking, the power sector took the lead with 19.237 billion dollars, accounting for 44.79 percent of the total, followed by oil and gas (14.372 billion dollars), mining (2.829 billion dollars), manufacturing (2.749 billion dollars), hotels and tourism (1.585 billion dollars) and real estate (1.056 billion dollars).
Japan’s ANA To Buy 49 Pct In Burma’s Asian Wings Airways | Irrawaddy, August 27
Japan’s ANA Holdings Inc. will buy a 49 percent stake in Burma carrier Asian Wings Airways as part of a strategy to expand overseas by investing in airline related businesses, an industry source familiar with the agreement said. ANA will pay US$30.45 million for the stake, the Nikkei business daily reported earlier. The two carriers may announce the deal later Tuesday, the source said on condition he was not identified. Rangoon-based Asian Wings, which began flying in 2011, operates three turboprop ATR 72 regional aircraft and one Airbus A321 on domestic flights in Burma. The airline plans to begin international service in October with a flight between Rangoon and Chiang Mai, Thailand, the Nikkei said.
Government Owned Factories will Privatize in 2014 | The Trade Times, August 31
Government owned factories that are facing losses will be completely privatized in 2013-2014 fiscal year in order to operate for the public and government’s mutual benefit said by U Thein Maung who is the Deputy Minister of Industry. In order to expand the private sector, the government owned businesses will be slowly transferred into privatized companies, which will be in the form of lease transfer or licensing. The expansion of the private sector has been supported by the current government since 2011 and many of the government owned operations are to be transferred into the private sector. Full English translation available.
Myanmar Plans to Borrow US$2.3bn From China | Eleven, September 1
Myanmar is planning to borrow a total of US$2.3 billion from China to finance 22 infrastructural projects, including those of telecommunication, electricity and construction, according to the government’s investment projection for national projects in 2013-14. Other areas that Chinese loans are to be used include agriculture, finance and industry. A total of US$646 million is to be spent in those projects during the fiscal year 2013-14. The national projects for financial sector include a micro-credit project to provide loans for small and medium enterprises, and establishing a SME bank.
Foreign Investors in Vietnam Consider Cambodia, Myanmar as Alternatives | Cambodia Herald, September 3
Foreign investors disenchanted with Vietnam are considering moving to neighboring countries such as Cambodia and Myanmar, VietnamNet Bridge reported Tuesday. "A lot of foreign invested associations have warned they are considering leaving Vietnam for the more attractive markets, like Cambodia or Myanmar," the report said. It added that a recent survey by the European Chamber of Commerce (Eurocham) in Vietnam found that 20 percent of its members were considering plans to head for other markets.
Burma Car Sales Projected to Grow 7.8 Percent Annually | Irrawaddy, September 6
Burma’s auto market is forecast to grow with 7.8 percent annually between 2013 until 2019, according to consultant firm Frost & Sullivan, which said that there could 95,300 vehicles sold per year by 2019. Economic growth, infrastructure development and rising incomes would drive this increase in car sales. Dushyant Sinha, the firm’s Associate Director, Automotive Practice, Asia Pacific, added, “However, factors such as unpredictable regulatory changes, high car prices, under-developed auto service market and inadequate road infrastructure might hinder the potential growth.” Sales of second-hand Japanese cars have jumped in Burma since October 2011, after the government lifted car import restrictions.
Myanmar Watchers Expect Jump in M&A's Next Year | Eleven, September 8
Myanmar could see a surge in mergers and acquisitions next year as foreign investors prepare to dive into the resource-rich country, a Bangkok summit heard. "Every sector in Myanmar will grow. Some local companies are now the targets for takeovers. For 2014, there will be more than 100 M&A deals," Alisher Ali, managing partner of Silk Road Management and founder of Silk Road Finance, said yesterday. His company has seen overwhelming interest from companies in Thailand, Japan, Singapore, South Korea and the rest of the world to do business in Myanmar, he told the "CNBC Summit on Myanmar". During the "CNBC Conversation with Martin Soong", he said buying stakes in Myanmar companies was the best way to make inroads into the country. He also suggested investing in venture-capital funds and small companies whose business philosophy should drive their growth in the coming years.
Myanmar's Border Trade Hits Over 1.8 bln USD in Five Months | Xinhua, September 8
Myanmar's border trade hit 1.881 billion U.S. dollars in the first five months (April-August) of the fiscal year 2013-14, 391 million dollars more than the same period of the previous year , local media reported Sunday. Of the total, export amounted to 1.171 billion U.S. dollars while the import represented 710 million dollars, enjoying a trade surplus of 461 million dollars. Myanmar's border trade is done through 15 points with four neighboring countries, namely China, Thailand, Bangladesh and India. Myanmar's largest border trade point lies in Muse with China, followed by Myawaddy with Thailand. Lewjie, Chin Shwe Haw and Kanbiketee stand as other trade points with China, while Kaw Thaung and Myeik with Thailand, Nabule, Htee Ki, Sittway and Maungtaw with Bangladesh and Tamu and Reed with India. In order to crack down on illegal border trade and raise the legal trade volume, Myanmar is sending mobile teams to supervise the trading activities and issuing Individual Traders Card to facilitate traders in carrying out their activities.
Businesses Urge Myanmar to Ease Border Trade Rules | Bangkok Post, September 8
Thai businessmen have called on the Myanmar government to relax border control rules affecting trade with Thailand. They were referring to the export of Thai products through Ban Pu Nam Ron temporary checkpoint in Kanchanaburi via the Htee Ki border checkpoint in Myanmar's Tanintharyi Division. The businessmen told a group of five Myanmar journalists who visited Kanchanaburi last week that they wanted to boost cross-border trade. The reporters from the Myanmar Journalists Association were in Kanchanaburi as guests of the Thai Journalists Association to sign a memorandum of understanding on a media exchange programme. They asked to meet Thai business representatives to discuss cross-border trade after Myanmar opened its Htee Ki border checkpoint in May. Thailand declared Ban Pu Nam Ron a temporary border checkpoint in May. Thailand declared Ban Pu Nam Ron a temporary border checkpoint in June.
Rakhine Economic Project Touted | Bangkok Post, September 8
Myanmar on Sunday opened tenders for a consultancy firm to help launch a special economic zone in the troubled Rakhine state, where sectarian violence claimed almost 200 lives last year. Myanmar is seeking an international firm that can help the government draw up the contract terms for potential investors in the Kyauk Phyu special economic zone (SEZ). The project is expected to cost about 227 million dollars in the initial phase, officials said.
Rakhine Conflict Won't Affect Kyauk Phyu SEZ, says Myanmar Govt | Channel News Asia, September 9
The government of Myanmar said that the religious conflicts in Rakhine will not affect the development of Myanmar's Kyauk Phyu Special Economic Zone (SEZ), located within that state. That is because the zone, situated in southwestern Myanmar, is one of the most important investment zones for the country, thus the government will ensure that it is safe from religious violence. This assurance is meant to reinforce a government initiative to encourage foreign companies to develop the area.
Myanmar's Market Capitalization To Reach $15 Billion By 2020, But First It Must Launch Its Stock Exchange | International Business Times, September 9
Myanmar's market capitalization could reach about $15 billion by 2020, as foreign investors enter every sector of the Southeast Asian nation. But that number, low compared to many of Myanmar's Southeast Asian neighbors, may still be too ambitious for the impoverished country, as the launch of its stock exchange is already behind schedule, and infrastructure for the majority of the country remains poor. "Every sector in Myanmar will grow. Some local companies are now the targets for takeovers," said Alisher Ali, managing partner of Silk Road Management and founder of Silk Road Finance. His firm has seen interest from companies in Thailand, Japan, Singapore, South Korea among other nations do to business in Myanmar, according to the Eleven Myanmar, a Myanamr news outlet. "Businesses from energy to food and beverages and property are the backbone of the economy." The country, which is making great strides owing to its economic and political reforms since 2011, will also cash in on the integration of ASEAN nations, which is expected to be completed by 2015. The corporate sector, in particular, will grow rapidly, Ali said Saturday.
Central Bank Eyes Decrease in Interest Rates | DVB, September 10
The Central Bank of Myanmar is considering lowering Burmese interest rates to bring them in line with international borrowing and lending standards. Currently, the Central Bank sets lending rates at 13 percent per annum while banks offer 8 percent for savings, significantly higher than Burma’s Southeast Asian neighbours where rates are generally fixed at around 2.5 percent for loans and 3 percent on savings. Satt Aung, deputy-president of the Central Bank of Myanmar said the bank is looking to reset interest rates according to international standards.
ADB Confident about Myanmar’s Economic Growth | Channel News Asia, September 11
The Asian Development Bank (ADB) on Wednesday remained bullish on Myanmar's economic prospects as it believes the country will achieve 6.8 per cent growth in fiscal 2014 compared to 5.5 per cent last year. The boost will be fuelled by strong export earnings from resources such as gas, hydropower and the boom in tourism. After 2014, the Myanmar economy will grow seven to eight per cent annually through 2030, said ADB's vice president Zhao Xiaoyu. The ADB predicted Myanmar, the rising star in Asia, will continue to shine if it maintains its growth momentum despite the challenges it will face as the country is well-positioned to accelerate its development. The two key ways in which Myanmar can do that is to capitalise on its natural resources and enhance its potential in services and tourism.
Challenges ahead for FDI | Myanmar Times, September 11
MYANMAR still has many hindrances for economic development even though foreign investment figures showed higher recently according Myanmar Global Investment Forum on September 10 and 11 in Nay Pyi Taw. The economic experts highlighted weakness of regulatory and lack of proper management for economic development, trade and investment sectors apart from other challenges such technology, human resources, electricity and land use.
Energy
Myanmar's Oil Potential Touted | iStock Analyst, August 28
Singapore's Interra Resources Ltd. announced it completed drilling its 14th oil well at the Chauk oil field in Myanmar. Interra said it completed drilling development well CHK 1171 in the Chauk oil field, its since the start of the year. The well was drilled to a depth of 3,200 feet and gave up 125 barrels of oil per day during testing. The company gave no indication Monday of the reserve potential in the Chauk oil field but said "several" other projects of its kind were slated for additional testing
Myanmar Companies Seek Joint Operation with Foreign Counterparts in Oil, Gas | Mizzima, September 7
Myanmar's domestic private companies are seeking joint operation with foreign counterparts in oil and gas exploration and production on mutually beneficial basis, local media reported Friday. A total of 154 Myanmar companies have bid with the Ministry of Energy for the move in onshore and offshore areas of the country but restricted to offshore blocks in deep waters. Among them are giant companies like Eden Group Co., Ltd, Shwe Taung Development Co.Ltd and Parami Energy Development Co., Ltd. Tender winners will be allowed to freely choose and operate with foreign oil and gas companies. According to official figures, there are 53 onshore and 48 offshore blocks being operated with foreign investment. Meanwhile, more and more foreign investors including those from the United States, Britain, India and Australia are tendering for engagement in oil and gas exploration and production in Myanmar's offshore areas. It is expected that tender winners will be announced in November after feasibility studies complete
Financial Services
Myanmar’s 2015 Stock Exchange Deadline at Risk: Southeast Asia | Business Week, September 3
Myanmar is running behind schedule for starting a stock exchange by 2015 after delays in getting the legal framework in place, said an executive at Japan Exchange Group Inc. (8697), which is assisting on the project. “We’re pressed for time,” Koichiro Miyahara, senior executive officer at Japan Exchange, said in an interview in Tokyo on Aug. 27. He said the late approval of a capital markets bill has delayed the project, and it’s up to the Myanmar government as to how fast it can set up related organizations such as a securities regulator. Japan Exchange’s predecessor Tokyo Stock Exchange Group Inc. and Daiwa Securities Group Inc. (8601) were chosen last year to help Myanmar set up a stock exchange as the Southeast Asian nation opens itself from decades of isolation and military rule. Companies from Coca-Cola Co. to Unilever Plc. are investing in the country of 64 million people after the U.S. eased economic sanctions last year.
MoneyGram Expands International Money Transfer Service to Myanmar | WSJ, September 6
MoneyGram International Inc. MGI -2.36% has expanded its international money transfer service to Myanmar, joining a slew of companies looking to tap the Southeast Asian country's potential. MoneyGram said its services will be provided through an alliance with Asia Green Development Bank, Myanmar Citizens Bank and Tun Foundation Bank.
India Raises its Game in Myanmar, Opens EXIM Bank Office | TwoCircles.net, September 8
The Export Import (EXIM) Bank will open a representative office Monday in Yangon, former capital and commercial centre of Myanmar, as India refashions its relations building diverse layers of contact with the Southeast Asian country that will chair the ASEAN bloc next year. The setting up of the EXIM Bank office is a follow up on Prime Minister Manmohan Singh's visit to the country in May last year during which India signed a credit line of $500 million to build railway and irrigation projects. India has also sanctioned another $250 million for various other projects. The Bank has asked the government to finalise those, says David Rasquinha, executive director of the bank. There also plans to use the credit scheme under the National Export Insurance Account operated by the Bank under which government agencies can import goods and services from India.
Food & Agriculture
Scant Stocks, Weak Demand Dent Burma’s Hopes Of Rice Revival | Irrawaddy, August 28
Shrinking global demand, poor infrastructure and hesitant investors could leave Burma far short of its rice export target this year, dealing a blow to its ambitions of competing with the world’s top shippers of the grain. Industry experts and government officials say the 3 million-ton target for the current fiscal year ending March 2014 is unrealistic and Burma, the world’s top rice exporter under British rule in 1934, faces multiple hurdles in revamping an industry that withered during 49 years of military rule
Taking the Pulse of Burma’s Bean Business | Irrawaddy, August 29
Each morning the floor of the Bayintnaung commodity exchange center in northern Rangoon is jammed with traders and middlemen and buyers looking for the latest prices and deals for some of Burma’s agricultural produce. Famously Burma was once the world’s biggest rice exporter, a position long-lost due to the decades of economic mismanagement under the country’s socialist rule and military dictatorship. The government has high-profile ambitions to retake that top spot, but here at the Bayintnaung exchange, the trade is mostly in matpe and mung bean and chickpea. These beans and pulses might be lower-profile than their rice counterpart, but are nonetheless a vital cash crop for some of the tens of millions of Burmese dependent on agriculture. “Many people are often surprised to hear that farmers make more money growing beans and pulses than they do from rice,” says Dr. Myint Oo, who sits on the commodity exchange’s executive committee.
Foreign Affairs
Myanmar Army Remains a Foreign Policy Power | Bangkok Post, September 2
Myanmar is experiencing a plethora of changes. Its political scene is liberalising rapidly. Political prisoners have been released. Public demonstrations and strikes of workers have been legalised. The iconic Aung San Suu Kyi has been elected to the parliament and the post-junta state structures have been broadly civilianised. While most Western sanctions have been lifted, the country has tripled the number of its official diplomatic relations in less than two years. But the success of the transition initiated by the disbanding of the junta in 2011 much depends on whether the once all-powerful Myanmar armed forces (or Tatmadaw) are willing to eventually return to their barracks, and leave policy-making to the civilian sphere. Far from being a sudden revolutionary moment, the current transition has indeed been conceived, prepared and supervised by the military itself. The Tatmadaw remains relevant in the post-junta landscape it has helped shape, and it still has the legal and constitutional instruments to intervene in politics and decisively influence the whole policy-making in the coming decade.
U.S to Help Myanmar to Participate in AEC | Eleven, September 2
The United States will provide assistance to Myanmar to participate in ASEAN Economic Community (AEC) according to officials. The AEC will start on December 31 2015 and aims to promote free trade between ASEAN nations. Myanmar’s Ministry of National Planning and Economic Development is tasked with involving Myanmar in the AEC, despite lagging in development compared to its neighbours. The government has also pointed out weak points in joining the regional bloc such as having to reduce bank interest rates, issue required laws and not to provide the assistance for the manufacturing of high quality products. Local businessmen are also lacking basic knowledge and information regarding the AEC. In private sector, local company Parami Companies Group is holding the business forums in Yangon, Mandalay, Kayin and Mon States to encourage participation in the AEC.
Lawmakers Uneasy Over US-Burma Military Ties | Irrawaddy, September 5
The Obama administration wants to restart US defense training for Burma that was cut 25 years ago after a bloody crackdown on protesters. While assistance would be nonlethal, some American lawmakers are resisting, concerned Washington is moving too fast in forging ties with a military still accused of attacking ethnic minorities and blocking humanitarian aid. The administration has rolled back tough sanctions and hosted President Thein Sein, a former junta member, at the White House to reward his heady rush toward democratic reform, but restoring military ties is particularly sensitive and viewed as one of Washington’s few remaining points of leverage. The administration, which is looking to boost US influence in Asia, is moving carefully but swiftly. With the backing of opposition leader Aung San Suu Kyi, US defense legal experts last week made their second trip to Burma in two months, scoping out what help they can provide on teaching about human rights and rule of law. And last Thursday, Defense Secretary Chuck Hagel met on the sidelines of a regional conference in Brunei with another former junta member, Lt-Gen Wai Lwin—the first bilateral meeting between the US and Burmese defense chiefs in two decades.
U.S., Myanmar Inch Closer to More Security Cooperation | Global Post, September 6
U.S. and Myanmar officials have discussed exploring ways to cooperate in counter-narcotics efforts and rule of law reforms in Myanmar, according to a statement released Friday by the U.S. Embassy. The discussions came during the visit of U.S. Assistant Secretary of State for International Narcotics and Law Enforcement Affairs William Brownfield to the country, according to the statement. During his three-day visit to the country ended Friday, Brownfield met with government and law enforcement officials to discuss the joint efforts, it said. In his meeting with Myanmar's police chief on Thursday in the capital Naypyitaw, Brownfield discussed plans to promote the U.S.-Myanmar partnership in combating drug trafficking and improving the capacity of anti-drug squads, according to an official online report by the Myanmar police force on Friday.
China, ASEAN Talk Up Trade, Gloss Over Dispute | Myanmar Times, September 9
President U Thein Sein said Myanmar aims to boost trade ties with China as it prepares to Chair ASEAN next year. “China has invested nearly US$14 billion in our country. Last year, bilateral trade hit $6.5 billion,” he said. “But [Myanmar’s] contribution to total ASEAN trade is too low so we need to promote trade links,” he said at the 10th China-ASEAN Expo in Nanning, China, last week. U Thein Sein added next year Myanmar, as Chair of ASEAN, will seek to engage with the world’s second largest economy. Chinese premier Li Keqiang downplayed simmering territorial disputes between ASEAN and China at the expo last week, instead stressing a “common destiny” and trade figures that could double to $1 trillion by 2020, according to Chinese state media.
Information & Communications Technology (ICT)
Parliamentary Bill Committee Calls for Press Bill Amendment | Eleven, August 24
The Upper House Bill Committee has decided to push for the amendment to a controversial legislation that was drafted by the Information Ministry after discussing the issue with MPs at the Upper House on August 23. The move came from the committee of Myanmar's Upper House of Parliament said in a report that an entire section of the controversial Printing and Publishing Enterprise Bill, approved by the Lower House in July, needed to be cancelled and amended. They were discussing the bill during a parliamentary session in Nay Pyi Taw on August 19. The press bill is the fourth pillar after three powers of administration, jurisdiction and legislation and it is directly related to the public. For that matter, it is the law that should be written with awareness, said MP Khin Maung Latt from Rakhine State Constituency No-6.
Telenor Sees Less than $2 Billion Investments in Myanmar: CEO | Reuters, August 28
Telenor will invest less than $2 billion in building its telecoms operation in Myanmar, its chief executive said on Wednesday. "It is going to be less than what we invested in total in Pakistan. Some (analysts) have used Pakistan as a benchmark and implied that it could be as much as what we invested in Pakistan, but it will not be," Jon Fredrik Baksaas told Reuters.
In The New Burma, Old Junta-Era Laws Survive and Adapt | Irrawaddy, September 6
It was once the feared weapon of a military junta, ruthlessly deployed to restrict Burma’s nascent Internet and throw journalists, students, monks and other political opponents behind bars. The junta is gone, but the Electronic Transactions Law and other draconian legislation remain on Burma’s books. Attempts to revamp them are stirring debate over the reformist credentials of the semi-civilian government that took power in 2011 and how far it will loosen tough state controls. Other junta-era laws have been scrapped or amended, only to be replaced by contentious alternatives that rights advocates regard as a threat to the emergence of a free media and civil society after nearly half a century of dictatorship. Burma’s former military junta imposed the Electronic Transactions Act in 2004 to counter the growing influence of the Internet, which had been introduced to Burma a few years earlier. Offenders can be jailed for up to 15 years for sending an e-mail containing information deemed detrimental to the nation’s security, economy, culture or “peace and tranquility”.
Myanmar's YTP Hooks Up to Epsilon | Light Reading, September 10
Epsilon, a privately owned global communications service provider, and Yatanarpon Teleport (YTP), a leading provider of telecoms services in Myanmar, have agreed to work together to deliver local data access services in the country. This agreement will provide data services to commercial buildings within Myanmar and deliver the international connectivity local and foreign businesses need to operate in the country.
Infrastructure
Fuji Electric Establishes Myanmar Branch Office | WSJ, September 2
Fuji Electric Co., Ltd. (TOKYO: 6504) announced today that it has established a branch office in the city of Yangon, Republic of the Union of Myanmar. Objective: Myanmar is presently in the process of developing large-scale special economic zones, and the construction of public infrastructure along with capital investment by foreign corporations, including Japanese companies, is expected to pick up in the future. Fuji Electric has been supplying various products including Electric Substation Equipment to Myanmar since the 1980s. As recently announced in its Medium-Term Management Plan, Fuji Electric intends to boost sales by capitalizing on demand for social and industrial infrastructure in Asia, which it has positioned as a key market. By establishing this branch office in Myanmar, Fuji Electric is aiming to expand its business while contributing to the country's economic development going forward.
Skyrocketing Real Estate Prices Deter New Foreign Investment in Myanmar | Mizzima, September 6
Skyrocketing real estate prices could deter new foreign investment that enters Myanmar, officials and economic experts warned on Saturday. The construction project of the Yangon-Dala River crossing bridge will be suspended during the current government's term as commercial real estate booms in urban Yangon, Dala township, President Office Minister U Soe Thein told a press conference in Nay Pyi Taw on Friday. The friendship bridge will cross the Yangon River to link urban Yangon with Dala township, the other bank of Yangon river and the bridge was planned to be built by South Korea. "The land prices increased sharply due to the hearsay news of the construction of the Yangon river-crossing bridge and setting up of an industrial zone in Dala where there is plenty of land and work force," a local economist said. Foreign investors will find it difficult to do business in the country due to such high property prices, U Soe Thein said. The government will stabilize real estate trade with a controlling system, he added.
UK Government Offers Help for Burma’s Electricity Industry | Irrawaddy, September 7
The British government says it wants to encourage UK firms in the electricity industry to offer help and investment in Burma. “Burma faces a huge power challenge as it seeks to harness its growth potential over the next few years. However, many parts of the country still face frequent blackouts, with current power generation capacity standing at 3,500 MW [megawatts],” said a London government statement following a visit to the United Kingdom by Burma’s minister for electric power, Khin Maung Soe.
ADB & Japan Help to Upgrade Road Between Yangon & Kayin State | Eleven, September 8
Asia Development Bank (ADB) and Japan will provide US$1.5 million to improve road connecting Kayin State and Yangon, according to ADB office in Yangon. Asia Development Bank (ADB) will obtain aid from Japanese fund to upgrade the 70 kilometres length road. With improved transportation, people from Kayin State will receive better employment opportunities, education and health care services, according to ADB’s announcement. The route is part of the East-West Economic Corridor in Greater Mekong Sub-region that links Myanmar to Indochina via Thailand. Beside upgrading existing roads, the project will also looking to improve the conditions of bridges and waterways along the route. The fund will cover the drafting of the plan and budget, the implementation of the project, the training of staff from Public Works under the Ministry of Construction.
National Affairs
Calls to Advance Democratic Reforms | Myanmar Times, August 29
Lawmakers amending the army-drafted constitution should push on with democratic reforms, according to a notice in The New Light of Myanmar on August 28. A committee of parliamentarians, formed in June from members of the ruling party, army and opposition, was charged with "maintaining the pace of democratic transition driven by the state and its people", said the announcement in the English language New Light of Myanmar.
Government Seeks to Define "Political Prisoner" Through Parliament | Eleven, September 2
A government-backed committee will attempt to define the term "political prisoner" through the parliament, according to a meeting held with human rights organisations. The Remaining Political Prisoners Scrutiny Committee held a meeting in Yangon on August 30 attended by President Office Minister Soe Thein, Deputy Minister Aung Thein and 15 other committee members. "Community-based organisations and political parties are required to work together to find out comprehensive definition of political prisoners. When this matter is put on the agenda in parliament, it will be passed as law," said Bo Kyi, joint-secretary for the Assistance Association for Political Prisoners (AAPP).
Myanmar's Speaker Holds Talks With Shan Leaders, Armed Rebel Groups | Radio Free Asia, September 6
Myanmar's Parliamentary Speaker Shwe Mann held talks this week with government leaders and rebels in northeastern Shan state amid plans for a nationwide cease-fire agreement to end conflicts with the country’s numerous ethnic armed groups, officials said. The talks came as the central government approved a license for an exile Shan media group to run a newspaper in Taunggyi, the capital of Shan state bordering China to the north, Laos to the east, and Thailand to the south. Shwe Mann, who took over in July as overall leader of the two chambers of Myanmar’s legislature, had met with the chief minister of Shan State, state legislators, political parties, nongovernmental organizations, community-based groups, and rebels groups, including the United Wa State Army (UWSA), Myanmar's largest ethnic armed group.
Myanmar Civil Society Going to Lose Another One? | The Diplomat, September 7
Since Myanmar’s reform process began in earnest in 2010, Myanmar civil society activists seem to have won one victory after the next. Indeed, the apparent change in the power of civil society, from before 2010 to today, has been probably the most striking aspect of Myanmar’s transition. Although the political system has opened up, there has not yet been a national general election since 2010; although the military is not as omnipresent as it was before 2010, it remains the central institution in the country, its role as a political actor untouched in many respects; although the business climate undoubtedly has improved, many Western and Japanese investors who have come to Myanmar in the past two years have returned home disappointed that, in reality, graft, poor infrastructure, uncertain regulations, and poor quality labor remain huge impediments to doing business.
Myanmar Parliament Speaker Stresses Rule of Law | Global Times, September 8
Speaker of Myanmar's parliamentary House of Representatives (Lower House) USwe Mann stressed the utmost importance of the rule of law in the country, calling on all the people to abide by the law, official media reported Sunday. Telling the organizations for the rule of law in Yangon, USwe Mann said stability and peace could not prevail in the nation in the absence of the rule of law and it may harm the country's sovereignty. He urged the concerned organizations to give suggestions on the rule of law with positive attitude instead of blaming each other. He pointed out that the parliament is responsible for the rule of law and enactment of the just laws which the people can abide by, adding that the rule of law is tied with just laws and the laws that serve the interest of the state and the citizens.
Myanmar to Draft Law to Form Court Monitoring Groups Including Media Reps | Eleven, September 8
Myanmar will draft a law to form court monitoring groups that will include media people, says the chairman of a parliamentary committee. Thura Aung Ko, chairman of Lower House's Judicial Affairs Committee, revealed the plan during a meeting between Union Parliament speaker Thura Shwe Mann and judicial organizations in Yangon on Saturday. He also said the law containing provisions to ban photo and video cameras in courts would be cancelled or amended. The constitution has clearly said that court trials must take place before the public except the cases that could harm the dignity, peace and stability of the State, said Aung Ko.
Myanmar's Adult Literacy Rate Rises to 95.13 Percent | Business Standard, September 9
The adult literacy rate in Myanmar has gone up hitting 95.13 percent in 2013, the country's official media said quoting its education minister Mya Aye Monday. The minister attributed the rise in the adult literacy rate to the opening of more than 43,100 basic education schools across the country in the 2013-14 academic year, according to Xinhua. He called for the establishment of a constantly learning Myanmarese society through basic literacy activities of the people. Education officials also stressed the need for all the people to be educated to catch up with the advances in technology. The UN Education, Social and Cultural Organisation (UNESCO) pledged to support Myanmar in development of human resources and flourishing of democracy in the country.
Burma: What Chance Another Coup? | The Interpreter, September 9
Whenever Burma-watchers get together these days, one topic that usually gets an airing is the prospect of another military coup. Some analysts have put the likelihood of this happening over the next five years as high as 20%, while others believe the odds are much lower. A few observers have argued that the country is still effectively under military control, so the question of a coup does not arise. Contrary to expectations, President Thein Sein's ambitious reform program has developed a momentum of its own and there is now palpable hope for real change. Opinion is divided on whether or not the process is 'irreversible'. It is difficult to see Burma going back to the dark days before 2011 but, in certain circumstances, the armed forces (Tatmadaw) could be prompted to step in and exert greater direct control. This issue can be examined at the national, institutional and personal levels
Myanmar’s Speaker Says Junta Constitution Written to ‘Transfer Power’ | Radio Free Asia, September 9
Myanmar's Parliamentary Speaker Shwe Mann on Monday said that the country’s constitution had been designed by the previous military junta to foster a smooth transfer of power to a civilian government, dismissing suggestions the generals in fact wanted to maintain their grip on power through the charter. Speaking at a meeting of local parliamentarians and ethnic leaders in the Tanintharyi region capital Dawei, Shwe Mann said that junta leader Senior General Than Shwe’s regime had wanted to transfer power way back in 2008 when the charter was approved.
Spokesperson Noncommittal on Rumour of President Forming New Political Party | Eleven, September 10
Ye Htut, deputy minister for information and spokesperson for the Office of the President, made no definite reply to the rumour that Thein Sein intends to form a new political party based on religion and nationalism. The rumour that the president was preparing to form the new party spread like wildfire among political analysts on September 9. The Daily Eleven had tried to contact Ye Htut by e-mail at mid-afternoon on September 9. The spokesperson replied the next morning with an indefinite answer. “We cannot definitely say it is wrong that the president will form a political party. It is also possible that the news has come out as a political game. But the news does not seem to be completely deniable. Whether [the president] will actually form a party, it would not be possible during this year. It could only be next year.”
Myanmar Buddhist Committee Bans Anti-Muslim Organizations | Reuters, September 11
A government-appointed body that oversees Myanmar's Buddhist monkhood has issued a directive intended to check the influence of a monk-led movement accused of stoking violence against minority Muslims. In an order dated September 2, the State Sangha Maha Nayaka Committee of monks responsible for regulating the Buddhist clergy prohibited the creation of formal organizations based around the 969 movement. "They didn't receive any permission, yet they want to form an organization and make nationality-protection laws," Ashin Baddanda Guna Linkara, the committee's vice-chairman for Yangon, told Reuters. The committee did not object to monks promoting the 969 ideology, which urges Buddhists to protect their faith against a perceived threat from Islam, he said, but the movement's leaders had gone too far by drafting proposed laws, including one that would stop Buddhist women marrying outside their religion.