Top Story of the Week: Critics Point to Flaws in US Reporting Criteria
LOOKING AHEAD
- 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.
- The Yangon City Development Authority is inviting tenders from companies interested in joint ventures on land-lease in Secondary Central Business District, Yangon. Tenders need to be delivered to the Engineering Department of the Yangon City Development Committee by December 2, 2013. For an expanded list of open tenders, please click here.
- Retired Ambassador U Than Swe has been appointed as a Political Advisor to President U Thein Sein. U Than Swe served as Ambassador to the United States from 2012-2013, and prior to that was Myanmar’s permanent representative to the United Nations. He has retired from the Foreign Service but will offer his advice to the office of the President in his new role.
- Reporting Requirements Holding Up Investment in Myanmar
- The reporting requirements for US businesses investing in Myanmar put in place after sanctions suspensions are proving to be a hindrance to U.S. investment in the country... In May, the US government established the “Burma Responsible Investment Reporting Requirements,” which stipulates new investment in Myanmar exceeding $500,000USD, investment made with Myanmar Oil and Gas Enterprise, or payments exceeding $10,000 USD to the government must be reported. Additionally, US companies are required to report purchases of property, contact with the military officials and departments, and plans for the respect workers’ rights and the environment. In surveying Council members, we have found concern and confusion over the reporting requirements are preventing companies from making small scale expansions of their investment, and for some, is preventing them from entering the country at all.
- Myanmar’s Telecom Companies Building Foreign Connections
- State-owned telecom companies Myanmar Posts and Telecommunications (MPT) and Yatanarpon Teleport (YTP) have started to seek and engage foreign telecom giants to boost their competitiveness. While MPT will become an independent corporation, YTP is considering a joint venture, merger and acquisition, or a strategic alliance with an international telecom firm. While the firms once enjoyed a complete monopoly, the new telecom law and entry of foreign firms increases competition. On June 27, Myanmar announced the winners of two foreign telecom licenses to Telenor of Norway and Ooredoo of Qutar. On August 29, the long awaited telecoms bill was passed in parliament. Representatives from the two state-owned telecom companies say that partnering with international telecom firms will help them to build infrastructure vital to increasing their competitiveness within the rapidly developing market. Corruption and cronyism in the sector may prove to be an obstacle to international firms looking at partnerships. The Myanmar government seeks to increase teledensity from its current level of below ten percent to at least eighty percent by the year 2016.
- Myanmar Adds Land Use Plan to-do list
- Channel News Asia has said the Myanmar government seeks to release a new national plan for the use of land by the end of 2014. According to the media outlet, the government hopes the plan will help control the increasing price of land by allocating reserved land for future urban development clarifying for owners the regulations surrounding the use and development of their property. The skyrocketing price of land is said to have become a strong deterrent for foreign investment with many businesses are finding it difficult to locate adequate business fronts and affordable rentals for their employees, a particular concern for U.S. companies subject to reporting requirements, as even purchasing a small office can bring a company over the $500,000 threshold. Some suggest the government should release land for joint venture development as an additional step to temper the rising price of land.
Customs
Foreign Car Companies Barred from Local Expo | Mizzima, September 13
Dr. Zarni Maung Maung, Managing Director of the Myanmar Professional Services Company Limited said that most foreign car manufacturers are barred from local car expos due to Myanmar’s car export policies. According to current rules, foreign companies have to be registered as a sub-company and the importers also need to have old vehicle permits or an individual import permit to take part in local exhibitions. “There are many Japanese car companies that made inquiries for participation when we organize car exhibitions. But it was difficult for them to get into the expo local policies are not clear to them”, said Dr. Zarni Maung Maung. All foreign companies have to be registered to open branches and cars can be imported only when they have paid taxes. In addition, local car showrooms do not have permission to exhibitions their products in local expos in accordance with the car showroom ‘Business Permit’.
Defense & Security
Myanmar to Grant U.N. Nuclear Watchdog Wider Access | Reuters, September 16
The U.N. nuclear watchdog will gain wider inspection powers in Myanmar under an agreement to be signed this week, in a further sign of the formerly army-ruled Asian state opening up to the outside world. Myanmar will sign the so-called Additional Protocol - which allows unannounced inspections outside of declared nuclear sites - with the U.N.'s International Atomic Energy Agency on Tuesday, the Vienna-based IAEA said. The move will help to ease any lingering concern about Myanmar's nuclear ambitions. Myanmar has denied allegations made by an exile group three years ago that it was trying to develop nuclear weapons, and most experts say its technological expertise is still far short of that level.
Myanmar Backs Nuclear Security Safeguards | UPI, September 18
The International Atomic Energy Agency announced Myanmar signed on to additional safeguard agreements regarding nuclear security. Myanmar's Foreign Affairs Minister U Wunna Maung Lwin signed the so-called Additional Protocol alongside IAEA Director General Yukiya Amano in Vienna. The agreement gives inspectors the right to conduct snap inspections outside declared nuclear sites.
Myanmar’s Supreme Commander Pays Tribute to PM Yingluck | Battaya Mail, September 18
Myanmar’s Commander-in-Chief of Defense Services Senior General Min Aung Hlaing has paid tribute to Prime Minister and Defense Minister Yingluck Shinawatra during his visit to Thailand, while calling for more cooperation on drug crackdown. Supreme Commander Gen Min Aung Hlaing yesterday met with the Thai Premier at the Government House, where both parties agreed that Thailand and Myanmar had had strong diplomatic relations and economic partnership. The two also agreed that the Dawei project was massive and that both countries would have to work hand in hand to ensure its success.
Why It Makes Sense to Engage Burma's Military | Foreign Policy, September 19
On September 18, Burma marked the twenty-fifth anniversary of the most important military coup in its recent history. When state-owned radio announced that the military had taken over at 4 p.m. on Sept. 18, 1988, I was just 14. My fellow students and I were staging a hunger strike as part of a nonviolent protest to call for the restoration of democracy in Burma. A dreary rain was falling. A voice on the radio read the coup announcement over and over again, alternating with loud military marching songs. The noise from the radio was agonizing enough. But then we heard a series of gunshots, and when we realized that they were gradually getting closer, older students and community leaders rushed to a nearby intersection to set up roadblocks so that an approaching column of soldiers couldn't reach us and clear out our camp.
Myanmar's Interests Closely Intertwined With Thailand, Says Country's Defence Chief | National News Agency of Malaysia, September 20
The Commander-in-Chief of Myanmar's Defence Services, Senior General Min Aung Hlaing, has stressed the need for Myanmar and Thailand to pay special attention to relations between their armed forces. During a call on Thai Prime Minister Yingluck Shinawatra at Governmental House in Bangkok on Tuesday, he said the heads of the two countries should pay special attention to the bilateral High Level Committee as being the most crucial for the relations between the armed forces of the two countries. Myanmar and Thailand have a long history of amity and relations between the two countries and two Tatmadaws (armed forces), he noted. Diplomatic relations between the two countries have reached their 65th anniversary this year and Myanmar's interests are closely intertwined with those of Thailand, he said.
Economics
Yangon Market Tepid Ahead of Govt Action | Myanmar Times, September 9
Yangon's real estate market showed signs of cooling last week as rumours of government plans to stabilise prices through increased property or transaction taxes put a damper on speculation, according to some industry insiders. “The frequency of real estate sales decreased by 50 percent in the last few days compared with a month ago,” said U Ko Min Min Soe, a senior agent at Mya Pan Thakhin real estate agency. “I think it’s because the government plans to stabilise prices in the real estate market, and buyers and sellers don’t want to sell their land or house rashly,” he said. U Soe Thein, a minister for the President’s Office, said on August 23 that regional governments were considering methods to slow the increase in property prices, such as creating a property tax.
Ease Industrial Approval Process: Serge Pun | Myanmar Times, September 11
Prominent entrepreneur U Serge Pun called for a streamlined process for industries planning to set up shop in Myanmar, claiming it will assist in attracting much-need factories to provide employment. U Serge Pun pointed to China where he said there the barriers to establishing a factory are lower, with no need to see a multitude of high ranking government officials before investing. “They go and start a factory because the rules are so transparent, so clear, that if you invest in [a specific] sector you know you can do this, you can do that, you cannot do that ... it’s all there,” he said at the Myanmar Global Investment Forum in Nay Pyi Taw on Tuesday. He recommended a similar approach could assist with attracting investment in Myanmar.
Foreign Investment has Created 20,000 Jobs in Burma Since April | DVB, September 12
Around 20,000 jobs have been created in Burma during the current fiscal year thanks to the increase in foreign direct investment (FDI), according to government data. In the first five months of the 2013-14 fiscal year (April to August inclusive), FDI topped US$1.8 billion, mostly focused in the garment manufacturing sector. Aung Naing Oo, the director-general of the Directorate of Investment and Company Administration (DICA), said the majority of investments came from East Asian countries such as South Korea, Japan and China. He said that Japanese automaker Nissan Motor Company was the most notable major investor in recent months.
Exports Set to Soar, as Europe Opens Its Doors | Irrawaddy, September 12
A preferential EU trade scheme has Myanmar’s exporters eyeing the European market with greater enthusiasm, after the 28-nation bloc recently dropped all tariffs and quotas on goods from the Golden Land. A July 19 decision by the European Commission saw Myanmar reinstated to the European Union’s Generalized Scheme of Preferences (GSP), a program designed to help the developing world prosper by giving poor nations a more favorable trade regime. Myanmar’s designation as a least developed country places it in the “Everything But Arms” bracket, completely removing tariffs and quotas on all exports except for arms and munitions.
Foreign Investment Rate Increases Fivefold in Wake of New Law | Eleven, September 12
Since Myanmar passed the new Foreign Investment Law in November 2012, the rate of foreign investment flowing into the country has increased fivefold, according to the Directorate of Investment and Company Administration (DICA). “In the past, the total foreign investment [for one year] in Myanmar used to be only around US$200 million. This year, it reached $1.4 billion in the first five months,” DICA Director General Aung Naing Oo told the Myanmar Global Investment Forum on September 10. “If our forecasts are not wrong, foreign investment will hit $3 billion by the end of this year,” he said, adding that the increase is a direct result of Myanmar’s economic reforms. Total foreign investment in Myanmar has now reached over $43 billion, according to the government’s figures. In August alone, it received $731 million in foreign investment. “Back in 2011, only one or two groups of foreign businessmen visited us each month [to discuss possible investments in Myanmar]. Now, about six to seven groups visit us every day. Most come from Japan,” Aung Naing Oo remarked.
Myanmar Facing Massive Inflation Before Economy Really Gets Going | CFR, September 13
A short piece by Agence France-Presse (AFP) run in the Straits Times yesterday, buried amidst the big international stories on Syria and the stand-off in the Philippines and others, caught my attention. The short piece, titled “Poor and Homeless in Costly Yangon” discussed how, because of Myanmar’s political and economic opening, and the lack of quality office and apartment and factory space in Yangon, rents for any decent property have soared through the roof. AFP estimates that land prices in Yangon have risen since 2010, the beginning of Myanmar’s opening, to as much as $700 per square foot now, far more than the price per square foot in Bangkok, which is vastly richer and has twenty-four hour electricity water, and all other modern conveniences. Other articles have suggested that some properties in central Yangon are renting for more than $1000 per square foot, more than rentals in Manhattan.
Myanmar Trade on Thin Ice | Bangkok Post, September 14
Thai businesses must be ready to seize Myanmar's new opportunities by late 2015, when the Asean Economic Community (AEC) will kick off, or they will be squeezed out of the market by Japan and China, say experts. Nitivadee Manitkul, the Foreign Ministry's director of economic relations and cooperation, said Thailand's private sector currently lacks the knowledge to take advantage of the trade agreements or operate effectively in Myanmar. Japan, on the other hand, has already set up an information office to help its companies gain a foothold in the previously military-run nation, she said. "Currently, 80% of Thai-Myanmar trade occurs on the border and still operates under the same conditions as before Myanmar opened up," said Ms Nitivadee. She said Board of Investment initiatives are also failing to promote Thai investments abroad effectively.
Myanmar Should Prep for US GSP | Myanmar Times, September 15
Myanmar's exporters ought to be preparing for the country’s inclusion into the US Generalized System of Preferences (GSP) list in the near future, said Marideth Sandler, CEO of Sandler Trade LLC. The US imported some US$8 million in goods from Myanmar in the first half of 2013, of which some $400,000 would potentially be GSP-eligible, she said at a Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) seminar last week. The GSP program allows some exports from Least Developed Countries into the United States duty-free. Myanmar was one of the first nations to become eligible for US GSP benefits in 1976 but was suspended in 1989. However, reinstatement is currently being considered, she said. Daw Khine Khine Nwe, joint secretary general of UMFCCI said Myanmar’s ascension into the program would increase trade links with the world’s largest economy.
Indian Foreign Trade Bank Opens in Yangon | Myanmar Times, September 15
State-owned Export Import (EXIM) Bank of India set up shop in Yangon last week, though it has already pledged to finance investments of some US$247 million in Myanmar, company officials said. The bank’s launch is the latest in a series of measures aimed at strengthening ties between the two nations, said Indian ambassador Gautum Mukhopadhaya. “India is very interested in developing potential opportunities in Myanmar,” he said. EXIM bank provides credit for India’s exporters, and also plans to support several Indian investment activities within Myanmar.
Myanmar to Investors: More Reform Ahead | The Nation, September 16
Kan Zaw, Myanmar's minister of national planning and economic development, said last week that the government's medium- and long-term reforms would ensure the creation of an investment-friendly climate and keep up with Asean and international norms and standards. Virasak Sutanthavibul, senior executive vice president of Bangkok Bank, said the Myanmar government should consider liberalising the financial industry so that foreign banks can form joint ventures with local banks, as 95 per cent of transactions are in cash. Foreign banks and financial institutions are only allowed to set up representative offices in the country. The opening of the industry could be done gradually, such as by allowing joint ventures and later branches, Virasak said.
Nissan to Begin Production in Myanmar | Jakarta Globe, September 16
Japanese automaker Nissan plans to begin producing small cars and trucks in Myanmar with its Malaysian partner as early as this year, the Nikkei business daily reported Monday. Nissan Motor and Malaysia’s Tan Cong Motor Holdings will jointly produce several thousand small passenger cars and pickup trucks a year in the Southeast Asian country, the newspaper said without citing sources. Myanmar has been experiencing sharp growth in demand for cars since it began taking steps toward democracy in 2011, and used Japanese models are especially popular there. In a bid to tap the market, automakers have begun moving in, with Japan’s Suzuki announcing the restart of production there earlier in the year and Ford saying it would open a showroom. But Nissan would be the biggest automaker so far to start production in the country, the Nikkei said, where huge import taxes and a US investment ban aimed at the previous regime had meant vehicles were too expensive for most people
Buying Into Myanmar’s Growth Story | The Sun Daily, September 16
Following the wave of foreign investments into emerging markets, Myanmar presents long-term opportunities for investors, particularly from neighbouring countries such as Malaysia. More and more multinational corporations (MNCs) are buying into the potential growth story of Myanmar, given its rich resources in gas, land and minerals, its strong agriculture sector and low-cost labour force. As foreign economic sanctions are slowly being undone, MNCs are keen to explore investment opportunities within this golden land and big names such as Pepsi, Coca-Cola, Kraft Foods and Mitsubishi want to secure their positions in this new market. In a McKinsey Global Institute (MGI) report on Myanmar published in June 2013, the consultancy firm estimates that a total investment of US$650 billion (RM2.14 trillion) is needed by 2030 to support the country's growth potential of 8% per year. Half of the investments will be channelled into infrastructure projects.
Sanctioned Firms Listed Amongst Burma’s Top Taxpayers | Irrawaddy, September 17
A new listing of Burma’s top 100 corporate taxpayers has thrown up a few surprises, not least the appearance of several companies founded by some of the country’s top tycoons—businessmen who remain blacklisted by the United States for links to the former military regime and, in some cases, over allegations of drugs trafficking and arms trading. “Some of the companies were not included on last year’s list so they inquired about this and have complied for this year,” said a senior official at Burma’s Internal Revenue Department (IRD), who asked not to be named. Companies run by well-known “cronies”— the collective nickname for businessmen deemed to have made their money through opaque deals with the Burmese military—such as Tay Za’s Htoo Trading Company and Steven Law’s Asia World, both featured on the lists of Burma’s top business taxpayers published by the IRD. NOTE: For a complete list of Top 100 Taxpayers
Drop in Chinese Investment Could Hurt Burma Economy, Reform: US Report | Irrawaddy, September 17
Chinese investment in Burma has sharply declined since President Thein Sein’s reformist government took over from the military junta in 2011, says a US-based think tank. It warns that this fall in investment could hurt Burma’s economic development and the success of its nascent democratic reforms. Burmese public opposition against China’s Myitsone Dam and the Letpadaung copper mine, and the government’s decision to suspend the projects, have seriously affected economic relations between the two countries, according to a report by Yun Sun, a researcher with the Stimson Center, a foreign policy research institute in Washington. “[P]olitical reforms since 2011 have substantially impacted Chinese projects, causing the rapid decline in Chinese investment,” Sun wrote. “China perceives that Myanmar is now a more unfriendly and risky place to invest and is displeased that the Myanmar government is not doing more to protect Chinese interests.”
On Cusp of FDI Boom, Mon State Still Struggling to Lure Investors: Lawmaker | Irrawaddy, September 17
Investors are showing interest in Mon State, but concerns about the quality of local governance and the region’s not-so-distant history of ethnic conflict may be holding foreign businesses back, according to a lawmaker from the Mon State Parliament. Aung Naing Oo told The Irrawaddy that a culture of state-level corruption remains entrenched in Mon State despite the political and economic reforms that have swept Burma in the last two-and-a-half years. That, combined with weak rule of law, has left prospective foreign investors hesitant to commit to the state in southern Burma. The ethnic Mon lawmaker said many companies’ representatives had visited his state, but concrete investments had yet to materialize. Though a breakthrough ceasefire was signed between the central government and the Mon National Liberation Army in 2012, a long-term political solution to the ethnic conflict has yet to be reached. The region’s economic prospects and trade potential are significant. Moulmein, the capital of Mon State, has border links to Thailand through Karen State, and plans have been drawn up for a deep-sea port and special economic zone (SEZ) in Dawei Township.
Myanmar 'Set to Build on Gains' | The Nation, September 18
Human resources a natural asset, reforms to continue, adviser says. Myanmar is confident that its competitiveness will improve next year as it capitalises on its reforms and its assets such as human resources, according to presidential economic adviser Zaw Oo. The challenge, however, is not how to make a big jump in its global competitiveness ranking, but how to sustain the progress it has made, he said. Among Myanmar's advantages are its strategic location, connected to two major economies, China and India, while its people are hard working, sincere and competitive, he said. These are among the things the country will fully utilise to boost its competitiveness. Adding to these qualities, the government is implementing constructive policies with the support of many international organisations. All these will enable Myanmar to improve competitiveness quickly, he said.
Barun Roy: Myanmar Lays the Bait | Business Standard, September 18
Although the new investment law offers a welcome mat, the country will have to start from scratch as support from its neighbours pours in. Having laid its bait, Myanmar now has to wait for the fish to come and bite. But it could prove to be a long wait. While the easing of Western sanctions has made Myanmar the darling of foreign investors and business quarters have welcomed the passing of a new comprehensive foreign investment law last November, there are still too many hurdles to cross and loose ends to fix. Big investors might simply want to watch out for a while. The new investment law offers a welcome mat and frees up quite a number of sectors, including energy, mining, forestry, oil and gas, real estate and construction, transport and logistics, and telecommunications. It allows overseas firms to wholly own their ventures, if they wish, or go into partnerships with local firms at whatever stake ratio is agreed between them. Land can be leased from the government or authorised owners for up to 50 years, extendable twice for 10 years each time. There will be tax holidays for the first five years and firm guarantees that no enterprise will be nationalised during the contract period. Manufacturing companies may be given a tax relief of up to 50 per cent from their export profits.
Myanmar: Pros and Cons of Investing in the Region's Last Frontier Market | The Nation, September 20
My visit to Myanmar about a year ago, including inspection of raw land, office buildings, serviced apartments and hotels, reminded me of when I first started working with CBRE Thailand 25 years ago. The key difference is that I now have a thorough knowledge of the property market, whereas in 1988 I was still new to the industry. It was interesting to explore the market, trying to understand the key locations in Yangon and with the information available, predict where the prime development locations would be and how Thai and other foreign developers might influence the market. Being the region's last true frontier market, Myanmar has seen an exorbitant rise in property prices and rents due to the lack of quality developments. Offices, hotels and serviced apartments are the first three sectors that enjoy high demand in any emerging market as it serves inbound investors and corporations that are starting up. It's a shock to see all three sectors currently achieving rents way above prime Bangkok offices.
Critics Point to Flaws in US Reporting Criteria | Myanmar Times, September 20
When they were unveiled in May, the United States government’s Burma Responsible Investment Reporting Requirements were touted by Washington as the cornerstone of the Obama Administration’s policy for transparent business reengagement with Myanmar. However, just a handful of reports have been filed on the US embassy’s website and the requirements have drawn the ire of both businesses, which see them as an unnecessary hurdle, and human rights groups, which say they are not stringent enough to ensure US businesses respect human rights. “For larger firms it may be less of an issue, but for smaller firms, the cost of time and resources necessary to comply can be considerable, and could be a deterrent to new investment,” said Lisa Burgess, spokesperson at the US Chamber of Commerce, which has opposed the reporting requirements and lobbied against them since they were first announced. Yet despite displeasure from both sides, The Myanmar Times understands that no further changes to the reporting requirements are being considered. Two public comment periods were held last year prior to the first reports being posted on July 1. The reporting requirements stipulate that US companies report new investment in Myanmar exceeding US$500,000 and any investment made with the state-owned Myanma Oil and Gas Enterprise (MOGE).
Energy
Myanmar Approves New Foreign Investments in Power and Garment Sectors | Eleven, September 15
Myanmar Investment Commission (MIC) gave approval to some new foreign businesses to carry out hundred-percent foreign investments in power production and garment manufacturing. Singapore-based power companies, UPP Holdings Ltd and UPP Greentech Pte Ltd, were given approval for producing and selling electricity as wholly-owned businesses at Ywama power station in Yangon Region. Two garment factories, one from Hong Kong and another from the UK, were also approved as hundred-percent foreign investments to engage in cutting, making and packing (CMP) clothes. Thailand-based North Star Manufacturing Co Ltd was allowed to form a joint-venture with a local partner and to set up a garment factory with CMP system at Hlaing Tharyar Industrial Zone (5) in Yangon Region. The total amount of foreign investment in Myanmar reached over 43 billion at the end of August, with China being the largest investor in the country followed by Thailand and Hong Kong. Major portions of the foreign investments are in oil and gas, energy and mining sectors.
More Natural Gas Power Plants on the Way to Meet Dry Season Demand, Says ESB | Eleven, September 16
Electricity suppliers will be turning more to natural gas, rather than hydro power, as increasing rates of consumption boost demand for megawattage during the dry season, according to the Yangon City Electricity Supply Board. Currently, Myanmar produces 3,300 mega-watts of electricity annually. That rate is reduced to half during the dry season, because the country relies mostly on hydroelectric power. Myanmar needs more than 300 mega-watts of electricity during the annual dry season. The government has increased the construction of natural gas-fired power plants recently, and for good reason: Myanmar needs 15 per cent more electricity per year, due to the increasing rate of consumption
Financial Service
Burma Govt Denies Reports That It Holds $11B in Singaporean Banks | Irrawaddy, September 13
Burma’s government on Thursday denied reports that it holds up to US$11 billion worth of foreign reserves in several bank accounts in Singapore. The figure was first mentioned by an independent financial researcher, who said that World Bank and Asian Development Bank (ADB) officials had provided him with estimates of Buma’s overseas reserves. It is believed that the billions of dollars were stashed in Singapore by Burma’s former military junta, which for many years earned hundreds of millions of dollars annually from natural gas exports, much of which was siphoned off and pocketed by members of the regime.
Myanmar Listing Goes to SGX | International Financing Review, September 14
Singapore is emerging as the equity market of choice for Myanmar-related financings, as the planned launch of the Myanmar stock exchange looks likely to be delayed from its original target date of 2015. The US$100m–$200m IPO of Toyo Thai Power Holdings, the Myanmese subsidiary of Thailand-based engineering company Toyo-Thai Corp, is looking to list in Singapore before the end of 2014. Toyo Thai Corp, a joint venture between Thailand’s Italian-Thai Development and Japan’s Toyo Engineering, is developing a 120MW gas-fired power plant in Myanmar. In addition, it is conducting a feasibility study to develop a US$2bn 1,000MW coal-fired power plant in Myanmar, which could be the precursor to an IPO. “The Myanmar government is expected to approve the project before the end of this year, after which we will decide on the IPO,” a company source said. The Stock Exchange of Thailand is said to be trying to convince Toyo Thai Power to list there instead, but Singapore appears to be winning the race to become the preferred venue for Myanmar listings.
Myanmar Possession of $11b in Foreign Bank Accounts Based on Information from WB and ADB | Eleven, September 15
The recent reports about Myanmar possessing US$11 billion in five foreign bank accounts have been based on the information from the meetings between the World Bank and Asia Development Bank in March and April last year. The Asia Program manager of Bank of Information Center (BIC), Mr. Jelson Garcia, who disclosed the information about the US$11 billion, sent an email including the above information to The Daily Eleven on Thursday. In the email, he focused on two points—not saying in categorical terms that the government does have it in such number of accounts and not working for the World Bank. "It was based on the information I and my colleagues received from our meetings with the World Bank and ADB in March and April 2012. Based on combined notes from me and colleagues who attended those meetings, they highlighted that Myanmar has reserves in some accounts but there were different estimated figures and they did not specify which banks the accounts were located," said Mr. Jelson Garcia in his email. However, he did not refute what he had said about the five foreign bank accounts and the US$11 billion.
Banks Wait for Central Bank to Give Go-Ahead to International Cards | Irrawaddy, September 19
Two of Burma’s leading private banks want to begin issuing debit cards that can be used all over the world, but are waiting for the green light to do so from Central Bank, bankers said. Both the Cooperative Bank (CB Bank) and the Asian Green Development (AGD) Bank have teamed up with United States-based bank card companies so that account holders in Burma will be able to withdraw their money elsewhere for the first time. CB Bank—which is expected to be first to issue internationally accepted cards—is working with Mastercard on an “Easy Travel” prepaid card, which has already been tested at banks in Thailand, Singapore, China and the UK, according to Managing Director Pe Myint.
Food & Agriculture
Myanmar To Boost Rice Production | Xinhua, September 11
Myanmar Ministry of Agriculture and Irrigation and International Rice Research Institute (IRRI) will cooperate for the development of Myanmar rice, official media reported Wednesday. U Myint Hlaing, minister of Agriculture and Irrigation and IRRI 's director-general Dr Robert S Zeigler signed a Memorandum of Understanding (MoU) on Myanmar Rice Sector Development Strategy and Program, in Nay Pyi Taw on Tuesday, said the New Light of Myanmar. At the workshop on development of Myanmar agriculture sector, both sides discussed rice research and world food sufficiency priority plan and strategy of Myanmar rice sector, international rice market and Myanmar's and papers on Myanmar rice research and development. Meanwhile, Myanmar is tasked with supplying 14,000 tons of rice for emergency food for ASEAN countries. A total of 1.4 million tons of surplus rice were exported last year. Strenuous efforts are being made for exporting 3 million tons of rice next year.
Myanmar: Awaiting Its Green Revolution – Analysis | Eurasia Review, September 11
On 1 September 2013, Myanmar’s President Thein Sein stated that “People in rural areas will soon experience tangible results of development programmes.” He seems to have ensured that the last months of his tenure are specifically dedicated to the farming sector, under the lead of the newly formed Ministry of Livestock, Fisheries and Rural Development. In Myanmar, agriculture accounts for more than 30 per cent of the GDP, and employs more than two thirds of the labour force. Hence it is no surprise that this features prominently on the political agenda. The agricultural concerns have been persistent for decades, but the recent transformation of the economy and the creation of space for social demands have generated more expectations from the rural areas. What are the current issues of Myanmar’s rural sector? And how should they be addressed by the government
Agricultural Products Export Earnings Reach Over US$ 845 Million | Thursa Swiss, September 12
According to figures from the Ministry of Commerce, Myanmar exported over 1.39 million tons of agricultural products worth over US$ 845 million during the period of 1 April to 23 August 2013. The numbers have decreased compared to those during the same period of FY 2012-2013. In that year, exports earnings amounted to US$ 887 million. Agricultural exports for the entire 2012-2013 fiscal year stood at US$ 2 billion. Rice and various types of beans and pulses are at the top of the list of major export items. Trading is conducted not only by shipping but also through 15 border trade stations located on Myanmar’s borders with Bangladesh, China, India, and Thailand.
Int'l Fund Grants Aid to Myanmar for Agricultural Development | Mizzima, September 18
The International Fund for Agriculture Development (IFAD) has granted 300,000 U.S. dollars of aid to Myanmar to carry out project for agricultural development, official media reported Wednesday. The 18-month project from October 2013 to March 2015 will be implemented in three villages of central Magway region. The project will mainly focus on capacity building courses for rural development, workshops and demonstration on development of agricultural and livestock sector, the report said. Civil society organizations and donors from home and abroad will be among those taking part in the project along with government departments, the report added. Moreover, Tony Blair Association will also provide necessary assistance for rural development and help Myanmar draft electrification and drinking water supply plan and comprehensive development plan. IFAD is also cooperating with Myanmar for huge investment by private sector on required high technology and processing plants for export of agricultural produces including paddy to the international market. Meanwhile, the government is also increasing agricultural loan to farmers to address their need of the injection of capital in the sector.
Foreign Affairs
Myanmar to Host ASEAN Drug Meeting in Yangon | Business Standard, September 14
Myanmar will host the ASEAN drug meeting in Yangon from September 24 to 27. The meeting is expected to be attended by high-ranking officials from the ASEAN Secretariat, ASEAN member countries, the representatives from ASEAN dialogue partner countries China, Japan, South Korea and India and high-ranking officials from the Drug Enforcement Administration (DEA) of the United States of America, Australian Federal Police (AFP) and the United Nations Office on Drugs and Crime (UNODC), said the New Light of Myanmar.
Suu Kyi Warns US, EU Not to be Over Optimistic About Myanmar | Eleven, September 15
Myanmar's democracy leader Aung San Suu Kyi has warned the United States and the European Union not to be over optimistic about Myanmar during her second European trip, according to Vatican Radio. The Vatican Radio reported that the Nobel Laureate has said Myanmar is still not a democracy nation even though it has been freed from military rule and has been undergoing reforms. "I think it is right to remove sanctions. But now it is more important than ever for those countries which have lifted sanctions, that is to say the United States and the EU and other countries, to look at the situation in Burma very objectively and not to be over optimistic," Suu Kyi was quoted as saying in the Vatican Radio.
West to Push for Another UN Resolution | Myanmar Times, September 15
The international community appears almost certain to adopt a human rights resolution against Myanmar at the United Nations General Assembly, which opens this week in New York, despite government expectations that the resolution would be dropped this year for the first time in two decades. Several sources told The Myanmar Times that a new resolution is likely because the international community believes the government has not taken sufficient action to address key issues in last year’s resolution, particularly steps towards reconciliation in Rakhine State and increased cooperation with the Office of the United Nations High Commissioner for Human Rights (OHCHR). Sources have also confirmed that the United States in recent weeks sent a démarche to the European Union, the main sponsor of last year’s resolution, urging the EU to begin drafting a new resolution. Neither the US nor EU embassies in Yangon responded to a request for confirmation that the démarche had been sent by deadline.
Suu Kyi Meets Privately with Dalai Lama | DVB, September 17
Burmese opposition leader Aung San Suu Kyi has risked prompting Chinese anger after it was confirmed she had a private meeting with the Dalai Lama on the sidelines of a Prague rights conference, its spokesman said Monday. Beijing has for decades opposed foreign dignitaries meeting Tibet’s exiled spiritual leader, who fled his homeland for India in 1959 after a failed uprising against Chinese rule. “They met on Sunday at the Dalai Lama’s lecture,” Filip Sebek, spokesman for the Forum 2000 foundation that organises the conference, told AFP, specifying that the two Nobel Peace laureates met in private. Beijing, a powerful Myanmar ally and major investor in the resource-rich nation, has branded the Dalai Lama an anti-China “separatist” who encourages violence.
New Zealand Opens Embassy in Myanmar | News Track India, September 18
New Zealand has opened its embassy in Myanmar, Foreign Affairs Minister Murray McCully announced Wednesday. "This new office in Yangon reflects Myanmar's remarkable progress in implementing political and economic reforms over the past two years," Xinhua quoted McCully as saying in a statement. "New Zealand has substantially increased its development assistance to Myanmar, with major commitments to dairy cooperation and capacity building. There is also considerable scope for New Zealand companies to invest," he said.
Healthcare & Life Science
A New Weapon in Myanmar's Fight Against HIV | Aljazeera, September 14
But last month, Myanmar began receiving $160m from the Global Fund to fight HIV/AIDS, allowing the country to extend coverage to all its citizens who suffer from the illness. Since 2010, when the Global Fund resumed work after pulling out of the country in 2005 due to government restrictions on its staff, Myanmar has seen improvements, said Shwe. "Access to anti-retroviral drugs has improved, but due to limited funding, availability of anti-retroviral drugs has remained an issue and has curtailed access to treatment and care." At the end of 2012, just 43 percent of those needing treatment were receiving it, said Myanmar's national AIDS authority. To put that in perspective, in nearby Cambodia, more than 94 percent of people eligible for ART are receiving it, according to a 2012 country report by UNAIDS.
Gov’t Sets 2015 Target for Public Health Insurance | Eleven, September 16
The government is aiming to complete a much-needed public health insurance policy by 2015, according to the deputy minister of finance. This kind of policy is unprecedented in Myanmar, where the government now covers only snakebite insurance. “Before deciding on a health insurance policy, we first need to research the data. And we have difficulty in obtaining the facts,” said Deputy Minister for Finance Maung Maung Thein. “Next, we have to consider Myanmar’s socio-economic situation and culture. Moreover, the health insurance policy must be affordable for everyone. We are planning to hold discussions that might assist us in developing the policy.” To finalize the policy, he added, the government would join hands with the Ministry of Health, private insurance companies, hospitals, and clinics to develop a plan that can be introduced before 2015. For middle-class people, the health sector can play a major role in the promotion of the insurance market. When health insurance policy develops first, the rest of the insurance market matures, said Indren Naidoo, senior vice president and regional director of Hong Kong-based Manulife Financial.
ICT
Epsilon Expands Myanmar Partnership | Telecom Asia, September 11
Connectivity service provider Epsilon has teamed up with Myanmar operator YTP to deliver enterprise data services in the market. Epsilon and YTP will collaborate to provide local data services to commercial buildings within Myanmar, as well as international data connectivity for local and foreign businesses operating in the nation. Carrier-neutral international connectivity will be provided via Epsilon's Global Network Exchange. YTP and Epsilon have been collaborating for the past year, with Epsilon providing its managed switch partition services and an international voice gateway to connect international calls to Myanmar. Epsilon CEO Andreas Hipp said the liberalisation of Myanmar's telecom sector means the companies can expand their relationship. “When telecoms laws are finally passed in Myanmar we are in a position to begin offering local access services in the country and help to spur on economic growth as well as infrastructure development,” he said. “We have had a very successful relationship with YTP in supporting their voice services and we look forward to expanding our co-operation to cover data services as well.” YTP provides nation-wide satellite and wireless voice, data and corporate VPN services.
Competing with Foreign Telecoms a Huge Challenge: Domestic Operators | Mizzima, September 12
Domestic telecommunication operators Myanmar Posts and Telecommunications (MPT) and Yadanapon Teleport, have said that it will be a big challenge for domestic operators to compete with foreign ones. They made the remark in the ‘Myanmar Connect 2013’ held at the MICC hall in Naypyitaw on September 10. They said that they are already facing challenges related to lack of adequate human resources. Tin Win, CEO Yadanapon Teleport said, “For domestic telecommunication operators like us, there are not enough technicians in Myanmar, besides other challenges in investment and service sectors.” Aung Maw, Managing Director of MPT said that when MPT separates from the Ministry of Communications, Posts and Telegraphs, to become a stand alone telecommunication operator, it will encounter difficulties in employing skilled technicians. He said, “We still do not have skilled workforce. Another challenge we will face is with improving infrastructure. Providing good, cost-effective service to our customers is also a challenge.” Foreign operators who attended the ‘Myanmar Connect 2013’ said that they will make efforts to improve human resources when they start operating in Myanmar.
MPT to Connect with ‘A Foreign Giant’ as it Plans for Competition | Myanmar Times, September 15
Myanmar Posts and Telecommunications (MPT) is in talks with international telcos including France Telecom to help it expand as future competitors Ooredoo and Telenor move closer to launching services in Myanmar. Managing director U Aung Maw said MPT would become a corporation separate from the ministry. “We are now discussing a joint venture agreement with a foreign giant,” he told The Myanmar Times on the sidelines of the Myanmar Connect 2013 conference in Nay Pyi Taw last week. U Aung Maw said MPT had held discussions with firms from France, Singapore, Japan, and other Western countries, though he declined to name the companies. A bidding process selected Telenor and Ooredoo as the winners for two mobile licences earlier this year, with a consortium of France Telecom and a Japanese firm finishing third. Domestic entities MPT and Yatanarpon Teleport (YTP) also possess licences, while MPT has the sole existing mobile infrastructure and customer base in Myanmar.
Orange Considering Partnership in Myanmar | Developing Telecoms, September 17
Myanmar’s incumbent operator is reportedly considering partnerships with several foreign operators – most notably Orange. The managing director of MPT (Myanmar Posts and Telecommunications), U Aung Maw, has confirmed that the operator is looking to disassociate itself from state control. By becoming a corporation it aims to find an international partner. “We are now in the preparation process discussing a joint venture agreement with a foreign giant,” noted Maw. This would allow the incumbent to compete with its two new foreign rivals, Ooredoo and Telenor. Both operators received licences earlier this year.
Connecting Burma: A Complex and Expensive Process | Asian Correspondent, September 17
Despite some positive developments, Internet access in Burma is still far beyond the reach of the average person. It was big news for Burma when the government awarded telecoms licences to international companies Telenor of Norway and Ooredoo of Qatar earlier this summer. The licenses will allow the corporations to come in and establish much-needed telecoms infrastructure and, in theory, make mobile and Internet services available to a much broader segment of the population than currently has access. But will that actually be the case? Some say it won’t make a difference for many in the country, which has only begun opening up to the rest of the world in recent years, after decades of rule under a brutal military junta. The International Business Times painted a less-than-optimistic picture of the challenges the average citizen faces when attempting to secure home Internet access.
Burma’s State-Backed Telcos Seek Backing to Take on New Rivals | Irrawaddy, September 18
Burma’s two state-backed telecommunications operators are seeking investors to put in more than US$1 billion as they prepare to compete with foreign newcomers, Norway’s Telenor and Qatar’s Ooredoo. Telenor and Ooredoo won the bidding for two new licenses in June to provide telecoms services in the country but are still waiting for final approval, expected this month, so they can start building their networks. Meanwhile two state-backed firms—Yatanarpon Teleport (YTP) and Myanmar Post and Telecommunications (MPT)—already hold active licenses. YTP functions primarily as an Internet service provider while MPT, a department of the Communications Ministry, acts as both a regulator and operator.
Investors in Burma Telecom Sector Face ‘Corrupt, Crony Practices’: Report | Irrawaddy, September 18
A tangled web of cronyism and corruption awaits foreign telecom companies investing in the development of Burma’s mobile telephone network, an international business risks report warns. The state-controlled Myanmar Post and Telecommunications (MPT), which will oversee the development, “appears to have preferential arrangements” with a clutch of Burmese businesses linked either to current influential politicians or the former military regime, said Maplecroft, a UK-based research and strategic forecasting company. It named Burmese firms Red Link Communications, owned by the two sons of Shwe Mann, speaker of the Union Parliament; Forever Group, whose chief executive Winn Maw is an adviser to the Information Ministry; and SkyNet, owned by Shwe Than Lwin Company, which had strong links with the former military regime and also has partnerships with the Information Ministry, notably in a broadcasting venture.
Infrastructure
Burma’s Shwe Taung Group to Invest $500M in 5 Years | Irrawaddy, September 11
Aik Htun, a well-connected tycoon and chairman of Burmese conglomerate Shwe Taung Group, told The Bangkok Post that his firm plans to invest heavily in the coming years. “We plan to invest about US$500 million in expansion over five years, focusing on property, shopping complexes and office towers,” he said, adding that Shwe Taung Group was interested in partnering with investors from Thailand and other countries. The conglomerate, which owns energy, construction and engineering companies, property, hotels and shopping centers, intends to double its business from $300 million last year to between $500 million and $600 million by 2017.
Myanmar's New National Land Use Plan in Pipeline | Channel News Asia, September 12
Myanmar aims to release a new national land use plan by end of 2014. The plan will outline the areas for urban development and help allocate reserved land for future urban use. Myanmar aims to release a new national land use plan which will outline the areas for urban development by end next year. This plan will help to systematically allocate reserved land for future urban use. It is also hoped such a plan will help control rising property prices. Property prices in Myanmar have been soaring recently, rising by more than three times in a span of just a few months. Aside from the growing demand for properties, the price hike is also due to a lack of quality developments. Another contributing factor is the lack of a clear national land policy. Land scarcity is certainly not an issue here in Myanmar. More importantly, observers said the government must map out detailed plans to specify exactly what the land can be used for and also what other plots of land are available in this country for development. Property owners can then have a clearer idea on what they want to do with their land, instead of holding on to it because of the lack of clarity in regulation. More details will be given as the government seeks to map out a better policy for urban land use.
Korea – Myanmar Collaboration to Power Thilawa Special Economic Zone | Thura Swiss, September 12
The Ministry of Electric Power and a joint-venture between state-owned Korea Western Power Corporation and Myanmar’s Hexa Group have signed a Memorandum of Understanding (MoU), to develop a 500 MW power plant to supply electricity to the Thilawa Special Economic Zone. The plant will utilize natural gas and garbage to gener-ate power. According to U Aung Than Oo, Deputy Minister of Electric Power, the project will be located on a 50 acre land plot next to Tharkayta Power Plant, which is owned by the Ministry of Electric Power. According to Dr Soe Han, Chairman of Hexa Group of Companies, negotiations with the Ministry are ongoing and the project will be implemented once the deal is completed. The joint-venture is also in the process of conducting an environmen-tal impact assessment for the project. Further details of the project, including the amount of capital involved, have not yet been disclosed. Korean Western Power Corporation, a subsidiary of Korea Electric Power Corporation op-erates power plants in India, Indonesia, Laos, Russia and the US.
Foreign Investors Call for Land Price Regulation in Burma | DVB, September 13
Investors met in Naypyidaw this week to discuss ways for Burma to harness its skyrocketing land prices, which analysts say are preventing foreign businesses from entering the market. Attendees at the Myanmar Investment Forum, held in Naypyidaw from 10 to 11 of September, called on the government to take the issue seriously or risk derailing Burma’s fragile economic transition. Aung Naing Oo, director-general of the Directorate of Investment and Company Administration told DVB that soaring land prices in Rangoon and other commercial hubs are obstructing foreign companies from investing in the country. “The [investors] stressed that the land price hike are a hindrance to foreign investment and they discussed the potential causes of this – some think it’s because of supply and demand and some think it’s because of the regulations [imposed by the government],” said Aung Naing Oo. Property prices in Burma’s main cities have more than tripled over the past few months, making some areas in Rangoon more expensive than New York City. The government has been criticised for failing to impose an effective property taxation regime.
Airlines Still in Infancy as Tougher Competition Looms | Myanmar Times, September 15
Though state-run Myanma Airways is celebrating its 65th anniversary this week, the country’s aviation industry is still at the “kindergarten stage”, an expert has warned. Founded as the Union of Burma Airways on September 15, 1948, the airline was a trail-blazer in the Southeast Asia of the 1950s. But then decades of isolation and sanctions devastated the country’s airline industry. While the opening up of the country is good news for national airlines, the likely increased competition also carries serious threats... Myanmar is set to join the rest of ASEAN in adopting the “Open Skies Policy” in 2015, which would allow foreign airlines greater access to Myanmar’s skies – and even allow foreign carriers to fly on domestic routes, which are currently restricted to companies that are majority or wholly Myanmar owned.
Myanmar to Build Thermal Power Plant for SEZ | News Track India, September 16
Myanmar will soon start construction of a thermal power plant to supply power to a planned Special Economic Zone (SEZ), state media reported Monday. The planned Thilawa SEZ project, which includes factories, high-tech industry, textile and manufacturing industry, is being jointly developed by Myanmar and Japan. Myanmar is holding 51 percent stake and Japan 49 percent, says Xinhua. The thermal power plant project, which lies in Yangon region's Thakayta township, will begin on a 20-hectare plot of land in the first phase by the end of this year. It is set to complete in December 2014. The power plant, which would generate 500 MW electricity, will be built by Hanza International Company with support from 18 other companies. Myanmar will finance the construction of infrastructure such as roads and bridges outside the SEZ.
Tender Opens for Investors to Lease Land for Yangon Central Economic Zone and Urbanization | EBM, September 17
(Ref: Burmesehearts, 10 Sep 2013) Yangon city municipal committee have announced that a tender is opening for investors to lease land in Yangon Central Economic Zone and Urbanization which will develop business office buildings and other buildings. The second Yangon City Central Economic Zone will be developed at Min Dha Ma and Taw Win roads, an area of 36. 551 square acres in Mayankone Township, Yangon. The development project includes hotels, a convention centre, exhibition halls, theaters, movie theaters, restaurants, electronics product centre, common purpose showrooms, and office building constructions. Likewise, there will be another Yangon city business building project developing at Mingalar Taung Nyut Township, Bo Min Yaung and Myanmar Kone Ye roads. The land area will be 8.518 square acres. There will be similar buildings and projects from the Yangon city central economic zone. In addition to that, apartment buildings will be included in this project. The complete tender document can be purchased and it will cost USD1,000 or Myanmar Currency of 1,000,000 Kyats. Burmese original here.
Myanmar Eyes Success In Joint Dawei Investment With Thailand | National News Agency of Malaysia, September 18
Myanmar is eyeing for successful investment with Thailand in projects related to the development of its Dawei deep seaport, Thai News Agency (TNA) reported. Myanmar's Supreme Commander, General Min Aung Hlaing, on Tuesday conveyed the message from Myanmar's President Thein Sein, during a courtesy call on Thai Prime Minister and Defence Minister, Yingluck Shinawatra at Bangkok's Government House. Yingluck responded positively and gave assurance of the Thai government's strong commitment to mega investment projects. Myanmar's Dawei deep seaport development, initiated in 2008, covers the construction of the deep seaport itself and an industrial complex in the southern Myanmar township, with both governments having formed a joint venture named, Special Purpose Vehicle-1, to run their joint investment.
Burma: Real Estate Prices Skyrocket In Pegu | Eurasia Review, September 18
Land prices in the city of Pegu are soaring amid the construction of various development projects in the area, including the Hantharwaddy International Airport, industrial zones and suburban housing estates. According to local residents and real estate agents, the price of land in the choicest areas of Pegu, previously valued between 200,000 and 300,000 kyat (US$200-$300) per 80x100ft plot, has skyrocketed to over 100 million kyat (more than US$100,000) – a breathtaking 500 times the price of just two or three years ago. South Korean firm Incheon Airport Consortium beat tender bids from six international rivals to build a new major airport for the country, situated north of Rangoon in Pegu region, some nine times the size and capacity of Rangoon International Airport. Hantharwaddy Airport is scheduled to be completed by 2018.
Sumitomo Corporation, NEC Group, Toshiba, and Morita Receive Order for Supply of Airport/Aviation Security Infrastructure in Myanmar | WSJ, September 19
Sumitomo Corporation, together with NEC Corporation, NEC Networks & System Integration Corporation, Toshiba Corporation, and Morita Corporation, concluded an agreement on September 10 with the Department of Civil Aviation, Ministry of Transport, Republic of the Union of Myanmar on the "Project for Improvement of Nationwide Airport Safety and Security" This Project is designed to help improve aviation safety at Myanmar's major airports (Yangon, Mandalay, Nyaung U, Heho, Thandwe, and Dawei). To satisfy the International Civil Aviation Organization (ICAO) safety standards, equipment such as Doppler VHF omnidirectional radio range beacons and distance measuring equipment (*1), flight procedure design systems, various aeronautical lights, and communication control units will be supplied to improve air traffic safety; and fire engines, X-ray screening machines, explosive detection devices and other equipment for airport security will be installed as necessary.
Foreign Investment in Myanmar Surges, Office Rents Sizzle | Reuters, September 20
Myanmar has approved more foreign direct investment in the past five months than all of last year, but companies setting up operations in the hot frontier market face a growing problem: Southeast Asia's highest office rental rates. Myanmar has approved FDI projects worth more than $1.8 billion from the start of the fiscal year on April 1 to the end of August, compared with $1.4 billion in the whole previous fiscal year, Aung Naing Oo, a director general at the Ministry of National Planning and Economic Development, told Reuters.
National Affairs
Changes Made to the Cabinet and President’s Advisory Teams | Thura Swiss, September 9
President U Thein Sein, with three notifications dated 9 September 2013, made changes to senior government positions as follows:
Dr Sai Kyaw Ohn
New Designation: Deputy Minister of Hotels and Tourism
Incumbent: MP of Pyithu Hluttaw, Shan Nationalities Democratic Party
U Tin Ngwe
New Designation: Deputy Minister of Livestock, Fisheries and Rural Development
Incumbent: Member of Nay Pyi Taw Council
U Phone Zaw Han
New Designation: Member of Nay Pyi Taw Council
Incumbent: Mandalay Regional Minister of Finance
The Nay Pyi Taw Council is the body responsible for governing Nay Pyi Taw which is under the direct administration of the President. The President also appointed new members to his advisory team according to Notification No. 58/2013. Previous changes to the President's advisory team took place in mid-August, in which Dr Aung Tun Thet and Dr Zaw Oo were assigned to the economic advisory team and U Nyan Naing Win was appointed as a legal advisor. The following is the list of newly appointed advisors:
U Than Swe: Political Advisory Team
U Thaung Nyunt: Legal Advisory Team
De-centralization a Major Challenge to Reforms | Mizzima, September 11
According to a report released on September 11, by the Asia Foundation and the Center for Economic and Social Development of the Myanmar Development Resource Institute (MDRI-CESD), the country is far from achieving its goals of decentralization. One of the major challenge of the on-going reform process in Myanmar is de-centralization. The report analyzes state and regional government's relationships between the union government and the decentralization process. It states that although, regional governments have started to open up more political space and the union government has come to commit to a people-centered development approach, they face significant limitations. On the one hand, the emergence of elected representative bodies at regional level is a significant step in the reform process, while on the other, regional parliaments face major capacity constraints. Additionally, executive bodies at the state and regional level are still dominated by a top-down appointment process. State and regional ministers are yet to exercise sufficient authority over administrative apparatus, limiting the effectiveness of the newly formed governments.
Myanmar Government Hopes for Nationwide Cease-Fire in October | Radio Free Asia, September 11
Myanmar’s government is optimistic of forging a joint nationwide cease-fire accord with all armed rebel groups in the country by next month, a government adviser said Wednesday, keeping fingers crossed that crucial talks next week with Kachin rebels will lead to a breakthrough. Hla Maung Shwe, adviser of the Myanmar Peace Center, said the long-proposed nationwide cease-fire could take place in the first week of October. An announcement of an October launch of the peace initiative by Minister in the President’s office Aung Min at the weekend met with skepticism by ethnic leaders. But Hla Maung Shwe said that a nationwide cease-fire next month remains a possibility pending discussion between the Kachin Independence Organization (KIO) and the government. The KIO, a member of the key United Nationalities Federal Council (UNFC) rebel alliance, is the only major armed ethnic group that has not yet signed a cease-fire pact with the government. The government has said since earlier this year that it wants to have the comprehensive truce after it reaches accords with each of the country’s 16 ethnic rebel groups individually.
Ethnic Majorities’ Perspectives Crucial to Establishing Federal System-Suu Kyi | Eleven, September 12
Myanmar must seek the opinions of major national races in discussing the issue of establishing states based on a federal system, The D Wave Journal quoted the leader of opposition National League for Democracy (NLD) as saying in its Monday issue. NLD leader Aung San Suu Kyi was speaking in Yangon on Saturday at a meeting with ethnic political parties regarding constitutional amendments. At present, the overseas-based United Nationalities Federal Council (UNFC) and the United Nationalities Alliance (UNA) are preparing to draft a federally-based new constitution. The UNFC is comprised of 11 ethnic groups while the UNA is comprised of the winning ethnic parties from the 1990 election. For its proposed new constitution, the UNFC wants to abolish the 14 existing states and regions and re-establish states. The UNF, however, envisions the establishment of eight states and a separate Burman state based on ethnic Shan principles.
Myanmar Coordinates For Opening Border Gates To International Visitors | National News Agency Malaysia, September 12
Myanmar's immigration authorities is coordinating with its Chinese counterpart to open Muse (Myanmar) -Ruili (China) border gates to international visitors for entry and exit by October, China's Xinhua news agency said quoting local daily 7-Day News' report Thursday. Valid passport and visa holders will be allowed to enter Myanmar through the Muse gate and exit through Yangon, Mandalay and Nay Pyi Taw international airports, the authorities was quoted as saying. Entry visa can be extended during the stay in Myanmar, the report added. The planned opening of Muse as international entry and exit gates followed similar move on Aug 28 with four entry and exit gates on the Myanmar-Thai border, namely Tachileik-Maesai, Myawaddy-Maesot, Tiki-Sunarong and Kawthoung-Ranong.
USDP Committee Begins Review of all Constitutional Drafts Since 1947 | Eleven, September 12
The central executive committee of the ruling Union Solidarity and Development Party has begun making observations on all previous drafts of the Constitution—including the 2008 Constitution—as part of measures to amend necessary clauses prescribed in 2008, said Htay Oo, vice-chairman of the ruling party. The ruling party has had several discussions on whether some clauses of the 2008 Constitution are applicable to the current situation in Myanmar. With the hope of providing better constitutional amendments, the parliament-formed Constitution Review Joint Committee will hold a paper-reading session, said Htay Oo.
Myanmar Takes More Measures in Carrying Out Reform Tasks | Xinhua, September 13
The Myanmar government cabinet has named four ministers at the President's Office as coordination ministers to undertake the responsibility of coordinating between various ministries and state or region governments. Of the four ministers at the President's Office, U Soe Thein was tasked as coordinating matter of economic reform, while U Aung Min as coordinating matter of political reform, U Tin Naing Thein as coordinating matter of private sector development and reform and U Hla Tun as coordinating matter of administrative reform. The four ministers have been involved in the National Reform Steering Committee, formed earlier in August and led by President U Thein Sein.
Radical Buddhist Monk, Muslim Leader Reach Peace Agreement in Myanmar | WSJ, September 13
Myanmar's leading radical Buddhist monk signed a peace agreement with a Muslim leader this week, a symbolic but important gesture aimed at cooling tensions between the two religious groups after more than a year of violence. The monk, Wiseitta Biwuntha, better known as the Venerable Wirathu—leader of the 969 movement, accused by Myanmar experts of inspiring brutal attacks on Muslims—and Muslim activist Shwe Kyi met on Tuesday, their third meeting since May to promote interfaith cooperation. The details of the agreement they reached—the first of its kind since violence between Buddhists and Muslims erupted last year—remain unclear, but its stated goal is to stop the spread of extremist views in both communities and eliminate interfaith discrimination. Communal violence, largely inspired by radical Buddhist teachings that preach the social exclusion of minority Muslims and the boycott of Muslim businesses, has left more than 200 dead and at least 250,000 displaced, mostly Muslims.
Burmese Billionaire Tay Za Wants Putao Land | Burma International News, September 13
A firm owned by the Burmese billionaire tycoon Tay Za has requested government officials to grant 600,000 acres (240,000 hectare) of land in northern Kachin's state Putao (also Putau) region for a gold mining project. Tay Za who is the owner of Htoo Trading and many other related firms has extensive business interests across Burma. He is well known for his cozy relationship with former regime leader General Than Shwe. A Putao based source that didn’t want their name used told the Kachin News Group to have personally seen detailed documents that were submitted to a local government office by Tay Za's firm asking to acquire the title of the large swathe of land that is spread over three townships: Putao, Machyangbaw and Nawng Mun. The document that included detailed exploration maps was submitted some time last year, according to the source.
Myanmar ‘Guaranteed’ a Free and Fair Election in 2015: Election Commission | Eleven, September 16
Myanmar will hold a completely free and fair national election in 2015, the election commission chairman told reporters in Yangon on Saturday. Tin Aye, chairman of the Union Election Commission, said a strategic plan was being drawn to ensure a smooth and problem-free election. “Blunders and weaknesses in the election process will cause problems. So we are drafting a strategic plan to implement the election process,” Tin Aye told the reporters at the Inya Lake Hotel. Tin Aye said that commission members began drafting the election process plan three months ago. Upon completion, he added, it would be distributed to political parties and social organizations for their suggestions. He also promised that the 2015 election would be completely transparent, free and fair.
Myanmar to Hold 1st Census in 30 Years | China Post, September 16
Myanmar announced plans on Sunday to conduct its first census in three decades, with plans to visit all households nationwide in just 12 days between March and April 2014. The census will be performed between March 30 to April 10, using 100,000 primary school teachers as census-takers. They will be paid 3,000 kyat (US$3.08) per day for their efforts, Immigration and Population Minister Khin Yee said. Myanmar's last national census was taken in 1983. The government estimates the current population at 60.98 million, based on approximate reproduction rates, Khin Yee told a press conference.
Constitutional Amendments Key to Reaching Genuine Peace - NLD | Eleven, September 16
The opposition National League for Democracy (NLD) and representatives from 12 ethnic groups have agreed on the importance of constitutional amendments to achieve internal peace. The landmark decision was made during a meeting on Saturday at the NLD’s headquarters in Yangon. "Constitutional amendment and internal peace come together. The NLD presented its constitutional amendment and internal peace process. All representatives from the ethnic groups agreed to that. The meeting on September 21 will decide whether to draft a new constitution or to amend it," said Tin Ngwe, a representative of the Kamans National League for Democracy. The NLD’s Constitution Amendment Committee and representatives from ethnic groups have already agreed to meet every Saturday. Their first meeting on September 14 highlighted the relationship between constitutional reform and achieving a sustainable peace between the government and ethnic armed groups.
Labor Laws Strengthened in Myanmar But Not Necessarily Working | PRI, September 16
Myanmar is changing. In June, the International Labor Organization lifted all restrictions on trade and investment in the country. The Myanmar Investment Commission says foreign investment in the country is five times greater than what it was last year. As the demand for labor increases, workers are beginning to organize for better working conditions. Kyu Kyu Win sits on the floor of her kitchen eating a bowl of watery rice porridge. It’s all she can eat these days because of stomach problems. Problems that might have something to do with her work as a labor organizer. Last May, the Ministry of Labor polled factories about working conditions. Kyu Kyu Win was collecting the surveys at Esquire Shoe Factory, where she works. She took the completed surveys from her factory to the Ministry of Labor. And when she got back, her boss called her into the office and fired her. According to Kyu Kyu Win, he said it was because she left work without permission. But Kyu Kyu Win is also a union leader actively involved in labor organizing. The boss fired four other union leaders at the same time even though they hadn’t left the office
Myanmar Locals Slam Dawei Contractor | Bangkok Post, September 17
A group of angry Myanmar villagers have accused Thai construction giant Italian-Thai Development PCL (ITD) of failing to keep its promise to compensate them for losses caused by the building of new roads for the Dawei deep-sea port and industrial project. Civic group Community Sustainable Livelihood and Development (CSLD), which represents the villagers, held a press conference to air concerns on Tuesday at the office of the Dawei Development Association in Dawei district, Taninthayi region. The group also issued a statement criticising what it described as "unfair and non-transparent compensation” offered by ITD.
Suu Kyi Calls for Speedy Change to Myanmar Constitution | Reuters, September 17
Myanmar needs to change its constitution as fast as possible to put the country firmly on the path to democracy, Nobel Peace Prize winner and leader of the country's democratic opposition Aung San Suu Kyi said on Tuesday. Suu Kyi's National League for Democracy (NLD) won a landslide victory in last year's parliamentary by-elections, giving her a seat in parliament. But the 68-year old faces a tough challenge to have the constitution changed to push on with reforms and to allow her to run for presidency in 2015. "We need to amend the present constitution that we may truly become a democratic country. This constitution is anti-democratic," Suu Kyi told reporters after attending a conference in Prague.
Teaching Myanmar’s Next Generation of Lawyers | East Asia Forum, September 18
Major changes have already been made to the legal system in Myanmar over the last two years. The next 10 years will be crucial to the country’s transition to a democratic legal system. As the reform process progresses, there is an urgent need for a new generation of law graduates capable of contributing to the development and consolidation of the law reform process. In August 2012, it was announced that undergraduate degrees would begin to be offered once again by the University of Yangon and Mandalay University. This new cohort of students, to begin in December 2013, will include 15 LLB students in each of the law departments. These changes raise key challenges when considered in light of the history of legal education and the tertiary sector.
UEC Waits on Electoral System Change Proposal | Myanmar Times, September 18
The head of the Union Election Commission says preparations for the 2015 election will only begin after a decision is made on which voting system to use. Chairman U Tin Aye told The Myanmar Times on the sidelines of the International Day of Democracy ceremony in Nay Pyi Taw on September 15 that the commission is still waiting for the Pyidaungsu Hluttaw to decide whether to switch from first-past-the-post voting. “We haven’t started anything yet. Unless they make a decision, we can’t do anything,” he said. In mid-2012, an alliance of minor opposition parties began lobbying the commission and President U Thein Sein to introduce a form of proportional representation.
Training to Prepare Intha for Elections | Myanmar Times, September 18
Intha community groups are preparing to conduct electoral awareness training in Nyaungshwe township later this month to prepare voters for the 2015 election, in a move that could threaten the support base of a local political party. Civil society organisations from the Inle area, led by Justice Movement for Community (JMC), Gone Saung Maung Mae and National Good Governance Individual (NGI), will hold a three-day workshop in late September. JMC member Daw Yu Hlaing Thinn said workshop will teach about the electoral system, political system, electoral fraud, why it is important to vote and how to vote. It will also cover human rights issues.
Myanmar MPs Propose to Amend Laws to Block Non-Citizens from Voting | Eleven, September 18
Members of Parliament in Myanmar have submitted bills to amend the parliamentary election laws which allow temporary citizenship card holders to vote. MP Ba Shein from Kyaukphyu Constituency in Rakhine State said on Monday that the bills -- the Lower House Election Law, Upper House Election Law and Regional Parliament Election Law -- would be discussed during the forthcoming 8th parliamentary session in Nay Pyi Taw. "We have submitted those bills to amend the laws that allow non-citizens to cast votes. This is contrary with the constitution. That issue may be deal with in the upcoming parliamentary session," said Ba Shein from the Rakhine Nationalities Development Party (RNDP).
Ministry of Commerce Opens Consumer Affairs Department | Irrawaddy, September 19
The Ministry of Commerce has set up a consumer affairs department that will open local offices in Rangoon and Mandalay this week, an official said, adding that a Consumer Protection Bill is due for discussion in Parliament soon. A local NGO welcomed the move, saying that currently Burmese consumers have no recourse if their rights are violated. A senior Commerce Ministry official said the new consumer affairs department plans to open local offices in Burma’s 14 states and divisions, including two branches in Rangoon and Mandalay. The latter two offices, he added, were scheduled to open on Thursday.
Arrests Cast Doubt on Myanmar's Reforms | The Nation, September 20
Myanmar's government promises change, but recent actions against prominent activists who have been detained or sentenced to maximum jail terms, have troubled many observers. A middle-school teacher, Soe Soe Khine, who attended the 25th anniversary of the 1988 people's movement on August 8 was fired by the Ministry of Education with no reason given initially. The ministry later said that Soe Soe Khine was forced to "retire" because she did not inform her supervisor about her trip but only rang to say she would not be at work. It said that, under regulations, every employee has to inform their superior if planning to travel beyond the area where they work. She broke the rules by going to Yangon. The 2008 constitution allows people to demonstrate freely, but when they apply for a permit to do so, the police deny most applications. After failed attempts to get a permit, some people demonstrate without one, and as a result are arrested.
Retail & Manufacturing
Myanmar Approves New Foreign Investments in Power and Garment Sectors | Eleven, September 15
Myanmar Investment Commission (MIC) gave approval to some new foreign businesses to carry out hundred-percent foreign investments in power production and garment manufacturing. Singapore-based power companies, UPP Holdings Ltd and UPP Greentech Pte Ltd, were given approval for producing and selling electricity as wholly-owned businesses at Ywama power station in Yangon Region. Two garment factories, one from Hong Kong and another from the UK, were also approved as hundred-percent foreign investments to engage in cutting, making and packing (CMP) clothes. Thailand-based North Star Manufacturing Co Ltd was allowed to form a joint-venture with a local partner and to set up a garment factory with CMP system at Hlaing Tharyar Industrial Zone (5) in Yangon Region. The total amount of foreign investment in Myanmar reached over 43 billion at the end of August, with China being the largest investor in the country followed by Thailand and Hong Kong. Major portions of the foreign investments are in oil and gas, energy and mining sectors.