Top Story of the Week: State Clarifies Reporting Requirements
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.
- For a listing of recent Myanmar government tenders, please click here.
Department of State Issues Clarifications to Responsible Investment Reporting Requirements
On September 23, the State Department issued a 20–point guide as a means to clarify the Responsible Investment Reporting Requirements (RIRR) introduced in May. Companies that do not adhere to the RIRR are subject to civil and criminal penalties if they do not report investments. Recently the Myanmar Times reported these penalties were new but later retracted their statement. The penalties were automatically in place since Myanmar has been subject to the International Emergency Economic Powers Act since 1997. Those specific penalties are elaborated in OFAC’s Economic Sanctions Enforcement Guidelines issued in November 2009. To view the RIRR guide, click here.
Telecoms Bill Expected to be Approved October 1
According to the Myanmar Times, MPs are expected to finalize Myanmar’s long awaited telecoms bill on October 1st. According to the Joint Bill Committee, President Thein Sein sent the bill approved on August 29th back to parliament with five recommended changes. Secretary U Saw Hla Tun noted that the committee agreed with most of the president’s changes but did not give specific details. MPs are expected to give priority to the telecoms bill and discuss the proposed revisions on October 1. After the bill is approved, it is expected to be enacted with seven days. Telecommunication firms are waiting for this bill as it will provide the framework in which they must operate. Recent reporting has focused on the potentially lucrative of the Myanmar telecoms industry. President U Thein Sein publicly announced his goal to raise teledensity from below 10% to 80% by the end of 2015, which offers substantial potential opportunities to new players in the mobile scene.
IN THIS UPDATE:
Defense & Security
US Welcomes Myanmar Signing Nuclear Agreement AP 20 Sep 2013
The United States on Thursday welcomed Myanmar's signing of an agreement with the U.N. atomic watchdog that will require it to declare any nuclear activities and allow inspections — the latest step by the former pariah nation toward openness. But citing concern about human rights abuses and ties with North Korea, Republican lawmakers urged caution in further deepening U.S. ties with Myanmar's powerful military. The Obama administration has moved rapidly to ease sanctions against Myanmar as it has undertaken democratic reforms after decades of repressive military rule. The engagement policy has been motivated partly by a desire to cut the military ties that the former ruling junta forged with North Korea. On Tuesday, Myanmar took a step long urged by Washington: the signing the International Atomic Energy Agency's Additional Protocol to its existing safeguards agreements. That could help address lingering suspicions that the secretive junta may have pursued a nuclear weapons program. The State Department said Thursday the protocol would help move the country also known as Burma "increasingly in line with international nonproliferation norms and standards."
Navy protests as Myanmar fires on boat Bangkok Post 21 Sep 2013
The Royal Thai Navy is protesting to Myanmar after its soldiers allegedly opened fire on a Thai fishing boat that sailed into an overlapping border area off the Ranong coast Saturday. The Third Naval Area Command, which oversees Thai territories on the Andaman Sea, sent the protest after an urgent meeting of the Thai-Myanmar General Border Committee (GBC) to discuss the incident. The crew of 14 jumped into the sea after the fishing vessel came under fire, navy spokesman Niphan Chamachot told the Thai News Agency. The crew was saved by a Thai navy ship stationed nearby, but the vessel has now been impounded and its captain held in custody, Capt Niphan said. The skipper, identified as Kayu Suksawat, is safe. Capt Niphan said the incident comes despite a warming in ties between Bangkok and Nay Pyi Taw - especially in light of the recent visit of Myanmar's Supreme Commander Snr Gen Min Aung Hlaing early last week. He met Prime Minister and Defence Minister Yingluck Shinawatra and Thai military top brass. "The situation is far from tense," he said, adding such misunderstandings can sometimes occur on the overlapping border.
Foreign dignitaries invited to witness ceasefire signing Eleven Myanmar 24 Sep 2013
Myanmar plans to invite United Nations Secretary General Ban Ki-moon, as well other foreign dignitaries to attend a ceasefire signing between the government and ethnic armed groups in Nay Pyi Taw in October. Minister Aung Min detailed ceasefire signing plans during a meeting with the Union Peacemaking Working Committee, the Rehabilitation Council of Shan State/Shan State Army (RCSS/SSA), and the Karen National Union (KNU) at Myanmar Peace Center in Yangon. "When we know the names of groups attending, we are to officially inform them. We have been talking this matter through with ethnic armed groups. The main thing is KNU share this matter with other groups. They have controlled other groups’ needs. This isn’t the matter between the two groups," said Dr. Min Zaw Oo of the Myanmar Peace Center. The government continues its plan to host a nation-wide ceasefire signing agreement with ethnic armed groups in the capital Nay Pyi Taw in October aimed at putting an end to decades of civil war.
Burma and N Korea continue to boost secret military ties: report DVB 25 Sep 2013
Burma continues to enjoy a furtive defence relationship with North Korea by using front companies and false flags to ship military cargo from Pyongyang to Rangoon, according to an investigation by NK News published on Wednesday. The report accuses the Burmese military of endorsing Pyongyang as recently as June, several months after promising Washington that it would sever all defence ties with the Asian pariah. The general director of the military-run firm Union of Myanmar Economic Holdings Than Tun is cited by the state-run North Korean Central New Agency (KNCA) as backing Pyongyang in its fight against the “US imperialists” in an official dispatch dated 23 June. “We extend full support and firm solidarity to the Korean people in their struggle for building a thriving nation and achieving the reunification of the country under the leadership of the dear respected Kim Jong Un,” Than Tun said, according to KNCA. “The US imperialists are now trying everything they can to lure Burma away from its alliance with North Korea. But the trade with North Korea is no doubt continuing.” NK News adds that North Korean ships have been told to be “more discreet” and not fly their own flag when entering Burmese waters, since relations with the west began to warm in 2011. The news group says that cargo ships now use “flags of convenience”, usually from Central American countries, to conceal their passage to Burma. The report also cites evidence of North Korean vessels disguising under Burmese flags to ship illicit materials into Rangoon, often in exchange for thousands of tonnes of rice. Many of these transactions are reportedly handled through front companies registered in Singapore or Burma, ostensibly trading “cement” or other commercial goods.
Myanmar to reform national cyber security team Eleven Myanmar 26 Sep 2013
Myanmar will reform its national cyber security response team, according to Myanmar Computer Federation (MCF). The team known as Computer Emergency Response Team (MMCERT), along with the with MCF, aims to cooperate with the International Telecommunication Union and other organisations to improve Myanmar's cyber security. "The MMCERT will be reformed to become a more effective and stronger organisation to cooperate with other international organisations and will do its best to secure the country's cyber security," said Zaw Min Oo, the general secretary of MCF. Myat Hein, the minister for Ministry of Telecommunications and Technology also stressed the importance of the cyber security when he addressed the anniversary of MCF recently. The MMCERT was previously criticised for its weakness in publicising information. For coming event, MCF said on its website that it will organise the International ICT Exhibition in October 2013 in Myanmar.
China's Antidrug Policies in Southeast Asia's Golden Triangle Asia Pacific Bulletin 26 Sep 2013
The notorious illicit opium-producing area--the Golden Triangle--between Myanmar, Laos and Thailand in the heart of the Greater Mekong Subregion (GMS) has become the focal point for China's external antidrug policy. Connected by the Mekong River--which flows from the Chinese province of Yunnan through Laos, Myanmar, Thailand, Cambodia and Vietnam into the South China Sea--this subregion is now the new frontline in China's war on drugs, especially along the borders of northern Laos and northern Myanmar. The area is endowed with an ideal climate for opium poppy cultivation, the prime ingredient for heroin. Drug trafficking from the Golden Triangle into mainland China through Yunnan is currently perceived by the Chinese government as a serious nontraditional security challenge as it is estimated that between 60-70 percent of the drugs consumed in China come from this region. These six GMS countries, with assistance from the Asian Development Bank, launched a program in 1992 of sub-regional economic cooperation--the GMS program--that aims to transform Asia's "last frontier" into an integrated free-trade zone. After more than 20 years of development, the program has promoted regional integration and further consolidated economic interactions between China and mainland Southeast Asia. Since 2010, Yunnan province has been Myanmar's primary export market, and today Myanmar and Vietnam account for 66 percent of Yunnan's foreign exports. Amidst these achievements in regional and economic integration, the region has encountered a number of social challenges ranging from poor infrastructure, high rates of illiteracy, money laundering and human trafficking. However, the most persistent nontraditional security challenge remains the plantation of opium poppy and the related drug trafficking of illicit drugs into China.
Muslims in hiding in Myanmar after sectarian strife flares Reuters 30 Sep 2013
Terrified Muslims hid in their homes in northwest Myanmar on Monday after armed police dispersed a Buddhist mob that torched houses and surrounded a mosque in the latest outbreak of sectarian tension. Clashes between majority Buddhists and Muslims have killed at least 237 people and left more than 150,000 homeless since June 2012. The violence threatens to undermine political and economic reforms launched in the two years since a quasi-civilian government replaced a military junta. The situation in the town of Thandwe was precarious after police restored order by firing shots in the air to break up the mob late on Sunday, said two security sources, who sought anonymity as they were not authorized to speak to the media. Thandwe, 260 km (162 miles) from the capital Yangon, is in Rakhine state, the worst-hit region. As in several previous bouts of communal unrest, a minor disagreement triggered an outpouring of anger, a local Muslim politician said.
Economics
Myanmar Sees Huge Foreign Direct Investment (FDI), But American Companies Still Lag Behind International Business Times 20 Sep 2013
Myanmar has approved more than $1.8 billion in foreign direct investment (FDI) projects from the start of the fiscal year on April 1 to the end of August, compared to the $1.4 billion in the previous fiscal year, but the Americans are losing the race to invest in the Southeast Asian nation to countries like South Korea, Japan and Malaysia... But compared to avid investment from other countries, investment from the U.S. remains negligible, according to the Irrawaddy, a Myanmar news outlet. As of Aug. 31, more than $43 billion dollars have been invested in Myanmar by foreign businesses, according to the Myanmar Investment Commission, and just over $243 million is of U.S. origin. Americans companies that invest more than $500,000 in Myanmar, or invest in the gas and oil sector, are required to file reports outlining steps taken toward “responsible investment,” which include details like what human rights and laborer rights policies have been implemented in the course of investment and what due diligence has been undertaken on local partners. Reporting requirements are enforced to ensure American businesses are cutting deals with Myanmar companies complicit in rights abuses, as bans are still in place against the Myanmar Army, the Ministry of Defense, and prominent “crony” businessmen. More than two months after the U.S. first published the first reports by American companies investing in Myanmar, big name brands such as Cisco Systems, Inc. (Nasdaq:CSCO), The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NYSE:PEP) and Visa Inc (NYSE:V) remain absent, despite having made announcements to move into the country. Of the 15 American companies doing business in Myanmar, 10 responded to the Irrawaddy to respond to questions regarding the reporting requirements, and of those, only General Electric Company (NYSE:GE) said it had filed a responsible investment report to the U.S. government, the Irrawaddy reported.
Tan Chong To Assemble Vehicles In Myanmar National News Agency of Malaysia 20 Sep 2013
Tan Chong Motor Holdings Bhd will manufacture and market motor vehicles in Myanmar with an initial investment of US$50 million. In a statement to Bursa, Tan Chong said the Myanmar Investment Commission (MIC) has issued a permit to ETCM (MM) Pte Ltd (ETCM (MM)), a Labuan-incorporated subsidiary of the Tan Chong Group, to manufacture and sell motor vehicles in the industrial area of Bago region. Construction of the assembly plant on a 50-acre piece of leased land would start within one year from the date of the permit and is expected to be completed in three years, it said. ETCM (MM) has submitted an application to the Ministry of National Planning and Economic Development of Myanmar to establish a new subsidiary, Tan Chong Motor (Myanmar) Co Ltd (TCM Myanmar), with an authorised capital of US$100 million.
Nissan to Produce 10,000 Cars a Year in Burma Irrawaddy 20 Sep 2013
Nissan Motor Company will start complete knock down production of the Sunny sedan in Burma with a Malaysian partner in 2015, it said on Friday, becoming the first major global carmaker to assemble cars in the Southeast Asian country. Nissan’s Malaysian partner Tan Chong Motor Holdings Bhd will build a plant in the Pegu Division, some 70 km (43 miles) northeast of Burma’s biggest city, Burma, with an annual capacity of over 10,000 vehicles, Nissan said in a statement. “We are confident that Myanmar will be an important economic engine for the region and are committed to help develop its automotive industry,” said Nissan Chief Executive Officer Carlos Ghosn in the statement.
Myanmar Needs ‘Responsible Investments’ to Develop, Suu Kyi Says Bloomberg Business Week 21 Sep 2013
Myanmar needs “responsible investment” of foreign capital as it seeks to accelerate economic development, opposition leader Aung San Suu Kyi said. The country also needs to improve its rule of law and democratic reforms must take place soon, not by 2015 when general elections will be held, Suu Kyi said at a conference in Singapore yesterday. “If you are going to try to revive the economy, you need capital,” Suu Kyi said, when asked whether investors should wait for more political stability before committing resources to the country. “I wouldn’t advise you to draw out. I would like you to continue your investments. But make them as responsible as possible.” Myanmar’s shift to democracy after five decades of military rule has attracted interest from companies including Google Inc., Coca-Cola Co. and Unilever Plc, while MasterCard Inc. (MA:US) last September became the first payments network to issue a license to a bank in the country. Chinese and Japanese companies are also investing in the nation, which borders India, China and Thailand.
US delegation to hold talks on sanctions Myanmar Times 23 Sep 2013
A United States delegation will visit Myanmar this week to assess the ongoing impact of its sanctions regime, the country’s embassy in Yangon has confirmed. The joint State Department and Treasury Department delegation will travel to Myanmar “to learn from US companies and other stakeholders about their experiences doing business in-country and discuss how the US government can support their endeavours”, an embassy spokesperson said. The delegation will meet US businesses, government officials, civil society organisations and Myanmar companies. “The delegation will discuss US sanctions policy and share information on the remaining sanctions. The members will discuss the impact of the easing of US sanctions over the past year on economic and political reforms taking place.” The spokesperson declined to comment further on the visit. The Myanmar Times understands that one focus of the visit will be an assessment of individuals and enterprises on the Treasury Department’s Specially Designated Nationals (SND) list. US companies are prohibited from working with firms on the list, which has ruled out partnerships with many of Myanmar’s most prominent business identities, including U Tay Za of Htoo Group and U Zaw Zaw of Max Myanmar Group.
Obama’s investment rules under fire, but no plans for a review Myanmar Times 23 Sep 2013
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 re-engagement 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 since they were first announced. 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.
Transformation of Cronies Key to Burma’s Development: 88 Leader Irrawaddy 24 Sep 2013
Leading pro-democracy activist Ko Ko Gyi says a careful transformation of the way that Burma’s cronies do business is important for the country’s socio-economic development, as their resources can support its fragile democratic and economic transition. 88 Generation Students group leader Ko Ko Gyi wrote in an op-ed for The Irrawaddy’s Burmese-language version on Monday that some businessmen could become assets for the country’s development if they are willing to be transparent about how they made their fortune under the former military regime. “We need businessmen with international qualifications to compete or cooperate with foreigners [investors] but unfortunately, most of them are close to members of the military regime,” he wrote. “So, how to transform them has become a major question.” He said that Burma is at a crossroads in terms of political, economic and social changes, and finding a way to transform the cronies’ business model and make them support the fragile transition through investment is now a key challenge.
Official: 'Gold Rush' Is On in Myanmar Asia Society 25 Sep 2013
Myanmar's top diplomat urged American companies to "join the gold rush" in his country, opening an Asia Society forum on Myanmar's economic future. "The door for business opportunity has been closed for four decades," said Foreign Minister U Wunna Maung Lwin. "That door is now wide open. It's a gold rush." The U.S. has treaded more cautiously than many in Myanmar — it ranks 13th of the 32 nations now investing there — but U.S. officials insist that corporate enthusiasm is strong. USAID Administrator Rajiv Shah told the gathering that dozens of U.S. companies had asked to join his recent trip to Myanmar, though he acknowledged the need to "knock down barriers" to investment — corruption and bureaucracy in particular. The question, as Shah put it, is, "Can the ministries change fast enough?" The forum, "Responsible Investment in Myanmar’s Future," hosted by the Asia Society and sponsored by the McKinsey Global Institute, brought leaders of the governments of Myanmar and the U.S. together with global leaders from the public, private and not-for-profit sectors. Tom Freston, a principal of Firefly3 and board chairman of the ONE Campaign, cited a "historic opportunity" in Myanmar, a country he has been visiting for decades. Freston noted a parallel to the recent renaissance of several African nations — "nations that have gone down the road that Myanmar's going down now" — and which have lured significant investment and seen spikes in economic growth.
World Bank approves major loan to Myanmar Business Report 25 Sep 2013
The World Bank has approved a 140-million-dollar, interest-free loan to provide a modern power plant for Myanmar as part of its rural electrification drive, officials said Wednesday. It is the financial institution's first major loan to the once-pariah country in more than two decades, the Bank's country manager Kanthan Shanker said. The loan will go toward replacing the 40-year-old generator at the Thaton power plant in the Mon state, south-east of Yangon, with new modern gas turbines capable of producing 106 megawatts of electricity - a 250 per cent increase over the plant's previous capacity.
Why fewer foreign investors are entering Myanmar Eleven Myanmar 26 Sep 2013
Myanmar’s less restrictive new foreign investment law, its large pool of cheap labour and its abundant natural resources are the good news for foreign investors. However, this hasn’t stopped many from voicing concern about the country’s more inauspicious facts: poor infrastructure, a lagging IT sector, unskilled labour and outdated labour laws. It’s generally agreed that the investment climate will ultimately be determined by how well the country’s leadership deals with political instability. The U.S. and European Union’s easing of the main sanctions on the country, which is also known as Burma, has led many to believe that the country’s long-term economic prospects are looking much brighter. However, unless the Myanmar government takes immediate steps to address the country’s many liabilities, it risks deterring foreign investment. According to the Myanmar Investment Commission (MIC), foreign investment has shown an upward trend since 2010 when the country introduced a raft of reforms.
UK Company Opens Office in Burma Irrawaddy 26 Sep 2013
Claridon, a logistics company based in Essex, England, has become the first British business to open an office in Burma, according to the website Echo-News.co.uk. The company provides commercial and military logistics to a wide range of clients, from Harley-Davidson to NATO and the US government. Its managing director, Chris Scott, said the company did not expect “instant results” from its investment, but expressed confidence in its long-term prospects in Burma. “Like many others, we feel, economically, the country has the potential of becoming another China, albeit on a smaller scale,” he said.
Mazda Showroom to be opened in Myanmar Thura Swiss 26 Sep 2013
A joint venture between Japan’s Mazda Motor Corporation and Cycle & Carriage Myanmar Co.,Ltd (CCAM) will open a Mazda car showroom in Yangon. According to Mr. Masamichi Kogai, CEO of Mazda Motor Corporation, brand new cars will soon be available but pre-owned vehicles will be sold first. A press conference regarding Mazda’s entry into Myanmar will be held soon, he added. Investment details, including the amount of capital involved and the location of the showroom have not yet been disclosed. CCAM is held 60% by Singapore based Jardine Cycle & Carriage Company (JC&C), an investment holding company engaged in the business of manufacturing, assembly, distribution, retail and after-sales service of motor vehicles in Indonesia, Malaysia, Singapore and Vietnam, and 40% by Automobile Century Company Limited (ACCL). JC&C is also working in partnership with International Beverages Trading Co.,Ltd (IBTC) to open car showrooms and services centers for Mercedes Benz and Mitsubishi Fuso. Mazda is the world’s 15th largest automaker by production, and produces approximately 1.3 million cars annually. Manufacturing is done largely in Japan with smaller operations in Asia, North America, South America and South Africa.
Japan approves US$ 5 billion development loan for Myanmar’s growth Eleven Myanmar 26 Sep 2013
Japan has provided Myanmar with an annual, low-interest development loan of US $5 billion (nearly Ks 5 trillion) as part of a 40-year development plan to assist the country’s growth, sources say. The loan, at a rate of 0.01 per cent per annum, is set at a lower interest rate than for a recently-approved Chinese loan. Japan agreed to provide the new Official Development Assistance (ODA) loan after President Thein Sein met with Japanese MP Eriko Yamatain, according to the President’s Office website. In August, the Exim Bank of China approved a $100 million loan, which led to a parliamentary debate surrounding the 4.5 per cent interest rate per annum. Among the countries that have approved loans to Myanmar, Japan is the biggest provider. Japan agreed to more than $940 million in assistance last month including the ODA loan, according to the Japanese Embassy.
Myanmar to apply for EITI membership Mizzima 27 Sep 2013
Civil societies have announced that Myanmar will apply for ‘Extractive Industries Transparency Initiative’ (EITI) membership in December. Salai Ceung Lian Thaung, Senior Advisor of the ‘Nursery’ group said, “The government will invite international academics and civil societies that are consistently monitoring extractive industries to form an executive committee. They will work for transparency in these projects, evaluate whether the project can develop local areas and the people, and compute how much revenue the government will receive and how much profit the companies will gain from the projects.” To apply for EITI membership Dr. Maung Maung Thein, the EITI Working Committee Chairman of Myanmar and Deputy Minister of Finance, will meet international academics and civil societies involved in monitoring extractive industries on October 1 and 2, at the Strand in Yangon. “After we acquire membership of the EITI, the monitoring groups will monitor and supervise accounts and budgets of the government and investment companies”, Salai Ceung Lian Thaung elaborated. The executive committee of the EITI will be formed after training representatives sent by the civil societies that are monitoring extractive industries. Subsequently, the committee will apply for membership at the EITI head office in Norway.
US clarifies biz reporting system Myanmar Times 29 Sep 2013
The US State Department has issued clarifications to its Responsible Investment Reporting Requirements for companies doing business in Myanmar. Companies that do not adhere to the reporting requirements will be “subject to civil and criminal penalties” for violation of the US International Emergency Economic Powers Act (IEEPA), the State Department said on September 23. Myanmar has been subject to the IEEPA since 1997 for its “large-scale repression of the democratic opposition”, according to the US Department of the Treasury’s Office of Foreign Assets Control. The penalties were included in a 20-point set of frequently asked questions designed to clarify the Responsible Investment Reporting Requirements. Introduced in May, it is the cornerstone of the Obama administration’s policy for transparent economic re-engagement with Myanmar. While the details released last week were not new, they represented the clearest statement yet by the State Department about how the reporting requirements work. As The Myanmar Times reported last week, the system has been criticised by rights groups for its apparent lack of strong penalties for non-compliant American companies. Lisa Misol, a senior researcher on business and human rights at Human Rights Watch, said that rights groups had lobbied for strong penalties during two public comment periods in 2012. The reporting system requires all US companies with investment over US$500,000 in Myanmar to file annual reports, along with companies that have any investments with state-run Myanma Oil and Gas Enterprise. The first reports were posted on the website of the US Embassy in Yangon on July 1. The clarifications to the reporting requirements come as a joint State Department-Treasury delegation visited Myanmar from September 23-27 to assess the impact of the relaxation of US sanctions against Myanmar over the past 18 months. It also gauged the impact of those that remain in place. An earlier version of this article appearing on The Myanmar Times’ website incorrectly stated that the penalties announced were new. We regret the error.
Myanmar, Japan to sign joint venture for Thilawa SEZ Eleven Myanmar 30 Sep 2013
A joint venture agreement for the second phase of Thilawa Special Economic Zone (SEZ) will be signed by Japan and Myanmar in October, according to the Thilawa SEZ Management Committee. "We are going to sign a contract in October to establish a joint venture company organised by the governments of Myanmar and Japan, the public services and Japanese private firms," said Sett Aung, Chairman of the Thilawa SEZ Management Committee. The Japan-Myanmar bilateral agreement was signed on May 25 of this year to implement the first phase of Thialwa SEZ, becoming Japan’s largest investment in Myanmar in over a decade. The first phase involves assessing the investment amount and an initial public offering. The construction of Thilawa SEZ will begin between the end of this year and early 2014. The project aims to be completed in 2015. The government is paying compensation to local residents who have been relocated because of the project. They will also create job opportunities for Thilawa residents. In Myanmar, there are three special economic zones: Thilawa, Kyaukphyu and Dawei. Among them, Thilawa is the only special economic zone that does not involve a deep-sea port project. Multinational corporations including Japanese companies have shown interest in the project.
Energy
Alstom’s eyes on Myanmar power Myanmar Times 22 Sep 2013
Large French conglomerate Alstom is aiming to set up a representative office in Myanmar, looking to take advantage of opportunities in the country’s hydropower sectors, chairman and CEO Patrick Kron said. The firm – which was the main supplier for China’s Three Gorges Dam among a number of other Asia projects – plans to open a country representative office in Yangon, eyeing projects in electricity generation and transmission, he said. “We are coming to Myanmar,” Mr Kron told The Myanmar Times at the launch of its generator factory in Tianjin, China on September 17. “We are closely monitoring Myanmar and its infrastructure development.” The firm first began working in Myanmar’s energy sector in 1957. Alstom also aims to work with international financial institutions such as the World Bank to provide funding for developers and construction companies for the projects. Its products generate 25 percent of the world’s hydropower, and “Myanmar is one market with a lot of potential,” said Alstom executive vice president Jerome Pecresse.
Singapore firm to try geothermal power in Myanmar Mizzima 23 Sep 2013
Singaporean company Emerging Markets Energy Pte Ltd will make feasibility study on establishing geothermal power plants in Myanmar, according to official sources on Sunday. The feasibility study, to be carried out in Shan state, Tanintharyi, Sagaing, Magway and Mandalay regions, will be made under a memorandum of understanding reached with the Myanmar Ministry of Electric Power. Myanmar disclosed that the country's power consumption has increased by 15 percent annually and the government is seeking every possible way to fulfill the country's increasing power demand, The downstream of Chindwin River in Sagaing and Magway regions, Mount Popa and Singu Hill in Mandalay region and hot springs near Maungmakan Beach in Tanintharyi region have the best prospects for power generation through geothermal, experts said.
Myanmar firms seek foreign cooperation in energy development East Day 23 Sep 2013
Myanmar's local firms are seeking joint operation with foreign counterparts in oil and gas exploration and production on mutually beneficial basis for the development of the energy sector. A total of 154 local firms have bid with the Ministry of Energy for the move in 18 more inland blocks and 30 more offshore blocks in the country, looking to joint venture with international companies. Among them are giant companies like Eden Group Co.,Ltd, Shwe Taung Development Co.,Ltd, and Parami Energy Development Co.,Ltd. Tender winners are to be allowed to operate with foreign oil and gas companies. Foreign oil companies, including those from the United States, Britain, India and Australia, are also 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. According to official figures, there are 53 onshore and 48 offshore blocks being operated with foreign investment.
Burma Govt Allows Oil and Gas Firms to Name Profit-Sharing Terms Irrawaddy 25 Sep 2013
In an apparent bid to make tenders to explore for oil and gas more attractive, Burma’s Ministry of Energy is inviting international companies preparing their bids to suggest their own terms for profit sharing with the government, a ministry official said Tuesday. The ministry is currently accepting bids from companies for exploration licenses on 18 “blocks” of onshore territory, and 11 shallow-water and 19 deepwater offshore blocks, in an attempt to tap into the countries largely untapped and highly lucrative energy reserves. Firms winning the tenders will be invited to enter so-called production sharing agreements with the state-owned Myanmar Oil & Gas Enterprise. A detailed outline of the bidding process—presented to potential investors and contractors at the Myanmar Oil and Gas conference, held in Rangoon by the Centre for Management Technology (CMT) on Tuesday—suggested that the government is considering awarding the blocks on more generous terms than it had previously announced.
Myanmar's wind power attracts Thai and other foreign firms The Nation 29 Sep 2013
Firms from Thailand and China are studying the feasibility of wind power in Myanmar, where 70 per cent of the population has no access to electricity, media reports said Sunday. Gunkul Engineering Public Company Ltd of Thailand and China Three Gorges Company agreed to study wind power generation in separate parts of the country, Aung Myo Win, assistant director of the ministry of electric power, told the New Light of Myanmar. Gunkul Engineering will conduct feasibility studies for the construction of windmills in the Taninthayi region and the Mon, Kayinand Shan states, with a target of producing 2,930 megawatts ofelectricity, he said. China Three Gorges will do similar studies in the Chin and Rakhinestates, and the Irrawaddy and Yangon regions, aiming to produce 1,102 megawatts. "Feasibility studies are underway for developing commercial windpower," Aung Myo Win said. "They will push ahead with the business if wind power is found to be economically feasible." Myanmar, under economic sanctions by Western nations during thejunta’s rule of 1988-2010, has carried out political and economic reforms in the past two years under elected President Thein Sein. Most Western sanctions were dropped last year, but foreign firms claim that a major disincentive for investment in the newly opened economy is the lack of electricity.
Financial Services
Myanmar Gems Entrepreneurs Federation plans to establish a public bank Eleven Myanmar 22 Sep 2013
Myanmar Gems Entrepreneurs Federation is planning to establish a public bank, according to the members of the federation. Once established, it will become the latest bank added to the current 22 public banks that are privately owned in Myanmar. The plan to establish such a public bank is aimed at bringing about the development of Myanmar gems and mineral resources, Myanmar Gems Entrepreneurs Federation said. The federation called a meeting this month to discuss the details of the plan, and its chairman Tycoon Tay Za and the members from Mandalay, Mogok and Myitkyina Townships attended it. They intend to name the bank as ‘Gems and Mineral Development Bank’. Until recently, Myanmar had only 19 private banks. The total number the private banks became 22 when the Central Bank approved three new banks including Myanmar Microfinance Bank and Construction and Housing Development Bank_ both of which are yet to start operation in the near future. They have a total of 577 branches as at the end of August. Meanwhile, there are 34 foreign banks’ representative offices in the country. According to the rules of the Central Bank, foreign banks are still barred from opening branches in Myanmar.
Myanmar admits $7bn in overseas stash Asia Times 23 Sep 2013
The Central Bank of Myanmar on Friday said the country's lenders have parked more than US$7 billion worth of foreign reserves in overseas bank accounts, rejecting reports that the figure was much larger and had led to the World Bank refusing to cancel its debt. At a press conference in Naypyidaw, Central Bank chairman Kyaw Kyaw Maung denied earlier reports that the Myanmar government held up to $11 billion in five overseas accounts, and which said the size of the holdings had prompted the World Bank to stand firm on recouping the country's loans. "We don't know about the $11 billion in foreign banks," Kyaw Kyaw Maung said. "According to our official foreign exchange figures, the Myanmar government has only $7.6 billion in foreign bank accounts," he said. Kyaw Kyaw Maung called the funds "foreign exchange reserves", which he said include government "budget funds as well as privately-held accounts". They are "used when needed", he said. But the bank chairman declined to specify where the funds were held or how much of the money was government-owned or privately controlled.
Parliament to discuss interest rate reduction Thura Swiss 26 Sep 2013
Parliament to discuss interest rate reduction Speaker of the Pyithu Hluttaw Thura U Shwe Mann, during a meeting with Myanmar Fishery Federation (MFF) on 8 September, promised to submit a proposal aimed at reducing interest rates for loans during the upcoming parliamentary session in October. He promised to do so in response to complaints by members of the MFF regarding high interest rates as a barrier to expanding their businesses. Current maximum interest rates for loans are 13%. U Set Aung, Deputy Governor the Central Bank admitted that the 13% percent interest rate is much higher compared to that of other nations, but there are reasons behind the high rate. U Htay Myint, Chairman of the MFF said the government sets a very high interest rate despite receiving low interest rate loans from foreign countries, which is unfair to SMEs and consumers. During the parliamentary session held in the first week of July, Dr. Lin Aung, Deputy Minister of Finance said there is no plan to reduce the 1 percent service charge currently levied for loans extended to local SMEs.
Myanmar's CB Bank to launch prepaid debit cards Banking Business Review 27 Sep 2013
Myanmar’s private lender Cooperative Bank is planning to introduce prepaid debit cards following the receipt of clearance from the Central Bank of Myanmar. A senior central bank officer was quoted by the Irrawaddy as saying that the card, which will be accepted domestically as well as internationally, will be issued to consumers from 1 October this year. Dubbed as "Easi Travel" prepaid card, it will be launched in collaboration with US-based global technology company MasterCard, the bank said. Following launch of the prepaid debit card, which has already been checked at banks in Thailand, Singapore, China and the UK, the CB Bank will be the first lender in Myanmar to issue the cards. Furthermore, the bank is also planning to debut a similar Visa-branded card, following the current roll out with MasterCard. It is believed that the prepaid card will be provided in one-time-use and reloadable versions, which will be exclusively available to CB Bank account holders.
Ways Old and New Clash in Burma’s Money Transfer Market Irrawaddy 28 Sep 2013
Eight months after the global money transfer giant started operations in Burma, Western Union says people in 107 countries have sent money to the previously sanctioned Southeast Asian country. With eight local banks onboard as in-country partners, the company has 280 agents across Burma, covering all of the country’s states and regions, bar the hard-to-access Chin State in the northwest. There is even an online money transfer option, emblazoned with a smiling, thanaka-adorned young woman atop the web page. MoneyGram is a more recent arrival to Burma, announcing in late August that its services would be provided through partnerships with three Burmese banks: Asia Green Development Bank run—by Tay Za, a long black-listed businessman—Myanmar Citizens Bank and Tun Foundation Bank.
Food & Agriculture
Farming and Factory opens invitation to partner up for Joint venture Trade Times 21 Sep 2013
The Myanmar Ministry of Farming, Fishery and Rural Regional Development will cooperate with domestic and foreign companies in the industrial, farming, and agriculture sectors. The Myanmar Fishery Federation (MFF) is preparing to cooperate with domestic and foreign companies on joint ventures at factories in different cities. The MFF is in the process of preparing Kyauk Phyu factory at Rakhine state, Nayung Shwe factory at Shan State and Than Dawe shrimp factory at Rakhine State. Furthermore, the Head of the Myanmar department of animal husbandry and treatment is calling for foreign and domestic companies to join joint ventures involving the animal husbandry sector and 43 animal food production factories. The Head of the Myanmar department of animal husbandry and treatment stated that the joint venture contribution will be to the value of 40% - 60% in the investment. Contracts will be based on a 40% investment by the department of animal husbandry and treatment Myanmar, and a 60% investment by a Partner Company. The costs and benefits will also be divided using the same 40%-60% ratio with the department taking 40% of the profit and and the partner company gaining 60%. However, for sheep, mutton and goat animal husbandry related sectors, the head department of animal husbandry and treatment Myanmar will base contracts on a 30%- 70% ratio with partner companies. Regarding animal husbandry related factories proposals, interested companies can apply for different factories from different regions. There are 3 factories in Southern Shan State, 4 factories in Northern Shan State, one factory from Eastern Shan State, 21 factories from Yangon Division, 6 factories from Pegu Division, one factory from Ma Guwe Division, 5 factories from Mandalay Division, one factory from Kachin State, and one factory from Chin State that are available for joint venture operation. These factories include food production factories, pharmaceutical production factories and poultry and cow animal husbandry. Interested companies can submit their proposal and application forms to the head department of animal husbandry and treatment Myanmar not later than 15th October, 2013.
Foreign Affairs
Major US Companies Slow to Report Burma Investments Irrawaddy 19 Sep 2013
More than two months after the United States published the first reports by American companies investing in Burma, big name brands such as Cisco, Coca-Cola, PepsiCo and Visa remain absent from the filings, which are posted on the website of the US Embassy in Burma. American companies putting US$500,000 or more into Burma or investing in the gas and oil sectors are required to file reports outlining steps taken toward “responsible investment,” including details such as what human rights and worker rights policies have been implemented in the course of the investment and what due diligence has been undertaken on local partners. Among other requirements, reports must outline any communication with the Burma Army and detail payments exceeding $10,000 made to Burma government bodies. As of this week, the published list features the same five company reports that were first posted in early July, when the report publishing process kicked off. Those reports, of varying detail, were by Capital Guardian Emerging Markets Equity DC Master Fund, Emerging Markets Growth Fund, Crowley Marine Services, Hercules Offshore, and Capital Guardian Emerging Markets Restricted Equity Fund for Tax-Exempt Trusts.
Burma to Sign Convention on Child Labor Irrawaddy 20 Sep 2013
Burma will sign an agreement next month with the International Labor Organization (ILO) to work toward the elimination of child labor in the country. It will be the first time that the Southeast Asian country has signed an ILO convention on child labor. “The government of Myanmar has announced its intention to ratify ILO Convention 182 on the worst form of child labor,” Steve Marshall, the ILO liaison officer in Rangoon, told The Irrawaddy this week. The ILO defines the “worst form of child labor” as work that can have a lasting impact on a child’s mental or physical development.
Myanmar opposition leader leaves for first visit to Singapore NZ Week 20 Sep 2013
Myanmar’s opposition leader Aung San Suu Kyi left here Friday morning on her first visit to Singapore at the invitation of the Singaporean government, sources with the National League for Democracy (NLD) said. Aung San Suu Kyi’s five-day Singapore visit came two days after she returned from a five-day trip to three Eastern European nations, namely Poland, Hungary and Czechoslovakia. In January this year, she had visited the United States and South Korea. Aung San Suu Kyi, who is the chairperson of the NLD and a parliamentarian, is to attend the Singapore Summit, during which she will deliver a speech on Myanmar’s transition.
Myanmar's Aung San Suu Kyi vows to keep good relations with China Global Times 21 Sep 2013
Myanmar's opposition leader Aung San Suu Kyi said on Saturday that she expects to continue with the policy of maintaining good relations with all the countries in the world, including China. But there will be more competition in the economic field, which she said is healthy for Myanmar and the foreign investors. The chairperson of the National League for Democracy, who is in Singapore for a five-day visit, said that Myanmar has had a good record of maintaining close ties with China and the rest of the world. Myanmar, which she insisted on referring to as Burma, has established a tradition of maintaining good relations with not just its neighbors but the West as well. It was one of the first countries to recognize the People's Republic of China after the Communist Party of China came into power in 1949, she said. "I do not see why we should not continue this policy of maintaining friendly relations with all the countries in the world, " she told business leaders and others at the Singapore Summit, a forum organized by an inter-agency office. Suu Kyi, who is chair of the Lower House Committee for the Rule of Law, Peace and Tranquility, arrived here on Friday. She has been scheduled to meet with senior Singapore leaders and ministers, and to be briefed by the Economic Development Board and other agencies.
Myanmar's new old friend Bangkok Post 23 Sep 2013
Japan quietly making headway as one of the most influential investors in a country it occupied only 70 years ago. International observers have had a field day analysing the battle for influence in Myanmar between China and the United States, as Beijing tries to shore up its ties with Nay Pyi Daw, and Washington makes up for lost time. But it’s the Tokyo Stock Exchange that is helping establish a modern stock market in this long-isolated corner of Southeast Asia. Japanese companies will be spearheading the Thilawa “special economic zone” outside Myanmar’s commercial capital. And when Myanmar’s airline industry saw its first foreign investors last month, it was Japan’s All Nippon Airways, which is buying a 49% share in Asian Wings, a tiny Myanmar-owned airline. Japan has been “by far the most vigorous of the countries ‘engaging’ Myanmar since the arrival of [Myanmar president] Thein Sein”, says Sean Turnell, a Myanmar expert and economics professor at Australia’s Macquarie University. It’s a reminder that beyond China and the United States, several regional powers have their own interests in the country — none, perhaps, more than Japan. And despite some hand-wringing over recent commercial setbacks in Myanmar, Japan’s involvement is only growing.
Myanmar's Suu Kyi looks to Singapore as model - minus the materialism Yahoo 24 Sep 2013
Myanmar opposition leader Aung San Suu Kyi cemented Singapore's role as a major economic partner and model for her country on a five-day trip to the island, taking home what she said were valuable lessons on education policy and anti-graft measures. But her endorsement of the wealthy city-state came with a caveat - Myanmar could do without the materialistic and high-pressure society that has accompanied Singapore's decades-long transformation from tropical backwater to economic powerhouse. "I want to learn a lot from the standards that Singapore has been able to achieve, but I wonder whether we don't want something more for our country," the Nobel Peace laureate told reporters on Monday evening as she prepared to return home. She added: "Perhaps Singapore could learn from us a more relaxed way of life."
Shwe Mann Assures Yingluck Burma Has Inclusive Democracy Irrawaddy 25 Sep 2013
Shwe Mann, speaker of the Lower House of Burma’s Parliament, assured Thai Prime Minister Yingluck Shinawatra that Burma was now practicing a democratic system, and that ties between the two countries remain strong, state media reported. The Thai premier told the Union Development and Solidarity Party (USDP) chairman that Thailand recognized the progress Burma has made in recent years. Burma’s military regime ceded power to a quasi-civilian government in 2011, ushering a series of reforms opening up the country economically and politically. The two met at Government House in Bangkok on Monday, where they also discussed bilateral cooperation to achieve a multi-million dollar Dawei deep-sea port project in southern Burma, Burma’s state-run radio announced Tuesday. A report in the English-language Bangkok Post said the two agreed to accelerate progress on the Thai-and-Japanese-backed project.
Japan pledges to help Myanmar with democratization, economic reforms Global Post 25 Sep 2013
Japanese Foreign Minister Fumio Kishida and his Myanmar counterpart Wunna Maung Lwin agreed Wednesday to boost bilateral cooperation in various areas such as democratization and economic reforms, Kishida said. Kishida told reporters after a meeting with the Myanmar foreign minister in New York that the Japanese government will make efforts to sign an investment treaty at an early date aimed at helping economic reform in Myanmar. "Both the public and private sectors (in Japan) will help Myanmar in the areas of democratization, stronger rule of law, reconciliation between people and economic reforms," Kishida said, referring to the need to bring an end to ethnic violence in the country. Kishida said he told his counterpart that Japan hopes Myanmar will exercise its leadership as chair of the Association of Southeast Asian Nations in dealing with issues such as China's activities in the South China Sea and North Korea's nuclear program.
Myanmar Looks forward to Closer Relations between China and ASEAN Daily Economic 25 Sep 2013
ASEAN Expo and Business and Investment Summit was held from September 3 to 6. As one of ten ASEAN (Association of Southeast Asian Nations) countries, Myanmar’s president U Thein Sein attended the summit and delivered a speech. As this was U Thein Sein’s second appearance at the expo since he won the presidential election, both Myanmar’s official and private media paid close attention to it. How to evaluate the role China has played in promoting business cooperation and investment between China and ASEAN countries via the platform of China-ASEAN Expo and Business and Investment Summit which has been held for ten times over the past decade? Khin Maung Lynn, joint secretary of the Myanmar Institute of Strategic and International Studies (MISIS), said to the author, as China is the most significant trade partner of the ASEAN, the China-ASEAN Expo plays an important role in strengthening friendly relations between China and the ASEAN and promoting the economic and trade cooperation of both sides. Just as what China’s Premier Li Keqiang said, China and the ASEAN had succeeded in building a past “Golden Decade”, and they would create a new “Diamond Decade” in the future.
Suu Kyi returns from Singapore Eleven Myanmar 25 Sep 2013
Opposition leader Aung San Suu Kyi arrived back home yesterday after attending an international conference in Singapore from September 20 to 22. The Singapore Summit was organized by Global Asia, Singapore’s economic development board, financial institutions, and the island city-state’s ministries of Trade and Finance. In her address to the Singapore Summit, Suu Kyi said that Myanmar’s economic development depends on responsible foreign investment. She added that, while Myanmar is making progress in its international relations, she hoped it would continue to maintain good relations with all nations in the world, including China. During her visit Suu Kyi also held a meeting with Myanmar citizens living or staying in Singapore. Nearly 6,000 people attended the Sunday meeting, where the National League for Democracy chairperson answered questions about politics, the economy and education. She also encouraged Myanmar citizens living abroad to participate in the improvement of their country whether or not they return to Myanmar. Suu Kyi also met with Singaporean President Tony Tan Keng Yam, Singaporean Prime Minister Lee Hsien Loong and parliamentary speakers, holding discussions on Myanmar’s development priorities and promoting bilateral relations.
Myanmar must continue making gains in democratic transition – UN chief UN News Centre 26 Sep 2013
Commending Myanmar for its remarkable progress, Secretary-General Ban Ki-moon today stressed that the South-east Asian country must continue its democratic transition and overcome the inter-communal violence that is threatening it. “Myanmar continues a journey towards a more open and broad-based democracy. Its robust civil society will play an increasingly crucial role as a bridge between government and citizens, in the process strengthening accountability, transparency and participation,” Mr. Ban told a ministerial meeting of his Group of Friends on Myanmar, which met on the margins of the 68th General Assembly in New York. Mr. Ban praised President Thein Sein’s commitment to bring the country towards peace, democracy and an open market, as well as the recent release of various political prisoners. However, he warned that the security situation remains fragile, and called for measures to ease tensions in the country. “Much of this progress could be undermined if the threat of communal disturbances and violent confrontation between religious and ethnic groups is not addressed effectively including by looking at the root cause of the conflicts,” he said. Mr. Ban expressed hope that the positive engagement between the Myanmar authorities and armed ethnic groups will result in a nationwide ceasefire “very soon.”
Myanmar establishes diplomatic ties with Angola Xinhua 27 Sep 2013
Myanmar has established diplomatic ties with Angola at ambassadorial level following the signing of a joint communique on the establishment between Myanmar's permanent representative to the United Nations and counterpart of Angola in New York, state media reported Friday. The establishment of diplomatic ties with Angola has brought the total number of countries in the world with which Myanmar has such links to 114. Myanmar and Angola won independence respectively in 1948 and 1975. According to the Foreign Ministry, Myanmar has so far set up embassies in 30 countries and two permanent missions in New York and Geneva, and four consulates-general in China's Hong Kong, Kunming and Nanning, and India's Calcutta, respectively. Meanwhile, 28 countries have set up embassies in Myanmar. In addition, China and India have respectively set up consulates- general in Myanmar's Mandalay, the second largest city, while Switzerland in Yangon and Bangladesh in Sittway.
Myanmar Told Communal Violence Threatens Reforms ABC 27 Sep 2013
A group of Western and Asian governments are lauding Myanmar's progress toward democracy but warning outbreaks of communal violence could undermine the reforms. Foreign ministers meeting Thursday on the sidelines of the U.N. General Assembly said in a statement that Myanmar urgently needs to address the political and economic grievances of the Rohingyas, including the question of their citizenship. The Rohingyas are a minority Muslim group that has suffered badly in sectarian clashes over the past year with majority Buddhists. Oftentimes, security forces have stood by. U.N. Secretary-General Ban Ki-Moon said there's much to be done to ensure accountability for the perpetrators. In a sign of the shifting international attitudes toward Myanmar, the former pariah nation was for the first time invited to the "Group of Friends on Myanmar" meeting.
New Zealand parliamentarians to forge links with new Myanmar lawmakers Mizzima 27 Sep 2013
New Zealand Parliamentary leaders, due to make a three-nation Asia tour from next week, will be looking to strengthen links with Myanmar's legislators, head of the delegation and Parliament Speaker David Carter said in a statement Thursday. The delegation, seeking to gain a better understanding of the on-going democratic reforms in Myanmar, would travel to the capital Nay Pyi Taw for a series of parliamentary calls, including meetings with the speakers of both the Lower and Upper Houses. The delegation will also meet with President U Thein Sein, who has been leading Myanmar's reform process, ministers, and opposition leader Aung San Suu Kyi, Carter said. Before heading to Myanmar, the delegation would visit Thailand to meet with Thai Prime Minister Yingluck Shinawatra and legislative leaders and establish a New Zealand-Thailand Parliamentary Friendship Group to promote cooperation.
Norway's first ambassador to Myanmar approved Europe Online Magazine 30 Sep 2013
Myanmar has welcomed Norway‘s first ambassador to the once-pariah state, media reports said Monday. President Thein Sein accepted the credentials of Ann Ollestad, a former ambassador to India, The New Light of Myanmar reported. She will reside in Yangon, as do all other ambassadors to Myanmar, although the capital is in Naypyitaw, 350 kilometres to the north. The former ruling junta moved the capital from Yangon to Naypyitaw in November 2005, but all embassies have remained in Yangon. Myanmar was shunned by Western democracies during its 1988-2010 military rule. President Thein Sein has introduced significant political reforms that have restored diplomatic ties with the West since winning the 2010 November general election.
Myanmar, Thailand agree to withdraw forces from disputed river islands Eleven Myanmar 30 Sep 2013
Myanmar and Thailand have agreed to withdraw military forces from disputed islands on the Moei River bordering the two countries. The decision was made after the 30th meeting of Town Border Committee (TBC) held in Myawady Town, Kayin State in eastern Myanmar on September 27. "It was once already discussed at the regional border meeting. Today, we have agreed on the pull out from these areas," a military commander from Tak Province, Thailand told the reporters after the meeting. Tensions mounted after troops were deployed to Hsinphyu Theingone and Meikonkit islands on the Moei River which borders Kayin State, Eastern Myanmar and Tak Province, Thailand. Hsinphyu Theingone Island is located about 1 mile north of Myawady Town, now an official entry point for tourists crossing into Myanmar from Thailand. Meikonkit Island is located some 15 miles south of Myawady Town. The meeting held on September 27 dealt mainly with the pull-out of troops from the disputed islands. Other matters concerning border security remained to be discussed, a high ranking official from the Ministry of Border Affairs and Security in Kayin State told Eleven Media.
Elders call for justice over anti-Muslim violence Myanmar Times 30 Sep 2013
Senior international political leaders have stepped into the row over inter-communal violence in Rakhine State and elsewhere. Former US President Jimmy Carter, accompanied by former Finnish President Martti Ahtisaari and former Norwegian Prime Minister Gro Harlem Brundtland came to Myanmar last week to talk to senior government officials and political and religious leaders. The three are members of The Elders, a group formed by former president of South Africa Nelson Mandela to speak out on major international issues. At a press conference in Yangon last week the three called for the end of impunity for the perpetrators of violence against the Muslim community and for the meaningful realisation of the right to freedom of religion.
ICT
Apple (AAPL) Products Now Officially Sold In Myanmar, But The Black Market Has Been Selling Them Long Before International Business Times 20 Sep 2013
Apple Inc. may be just getting into Myanmar, but its products, along with those of other world famous electronics brands, are already available in the Southeast Asian nation. Often, those electronics are sold in the black market, at prices far below the prices authorized resellers can offer. Retailers smuggle electronics and other goods into Myanmar from low-tax regions like Hong Kong, and do not declare them at customs, according to the Irrawaddy, a Myanmar news outlet. “There’s no commercial tax that they pay, there is no import tax that they pay, and there is no VAT that they pay as well,” said Myat Htoo, president and CEO of Make It Happen International, which is opening an authorized reseller of Apple’s laptop and desktop computers, mDrive, later this month in Myanmar's commercial center of Yangon. “So with these three taxes, if you miss it, if you can go around it, it will be very cheap.”
ISP licenses to be issued after new IT law Mizzima 24 Sep 2013
The Communication and Information Technology Ministry announced that new Internet Service Providers (ISP) licenses would be issued to operators after the Information Technology Law is enacted, at the annual General Body Meeting of the Myanmar Computer Professionals Association (MCPA) held in Yangon on September 20. Min Zeyar Hlaing, Chairman of the Myanmar Computer Industry Association (MCIA) told Mizzima, “The companies eligible for licenses have been selected. The new ISP licenses will be issued to these companies after the Information Technology Law is enacted.” At present, the Myanmar Post and Telecommunications (MPT) and the Yadanbon Teleport are the only ISPs in Myanmar,. Domestic IT companies provide internet service in collaboration with the two official ISPs.
Myanmar to reform national cyber security team Eleven Myanmar 26 Sep 2013
Myanmar will reform its national cyber security response team, according to Myanmar Computer Federation (MCF). The team known as Computer Emergency Response Team (MMCERT), along with the with MCF, aims to cooperate with the International Telecommunication Union and other organisations to improve Myanmar's cyber security. "The MMCERT will be reformed to become a more effective and stronger organisation to cooperate with other international organisations and will do its best to secure the country's cyber security," said Zaw Min Oo, the general secretary of MCF. Myat Hein, the minister for Ministry of Telecommunications and Technology also stressed the importance of the cyber security when he addressed the anniversary of MCF recently. The MMCERT was previously criticised for its weakness in publicising information. For coming event, MCF said on its website that it will organise the International ICT Exhibition in October 2013 in Myanmar.
Mobile operator unveils franchise service aimed at Myanmar women ZD Net 26 Sep 2013
Qatar's state-owned carrier Ooredoo has unveiled a new franchise program to encourage women in Myanmar to contribute to the local economy. The mobile service franchise initiative hopes to recruit 30,000 Myanmar women by 2016. Together with the Cherie Blair Foundation for Women, the operator highlighted "an urgent need" for more women to participate in the nation's economic development where 25 percent of the population currently live below the poverty line. In a statement released Thursday, Ooredoo said: "Women should have equal opportunities to access mobile technology today in order to be able to best advance their lives and those who depend on them." The operator, which owns one of two foreign telco licenses in Myanmar awarded in June this year, will work with the Cherie Blair Foundation to develop a franchisee model to help women in the country be entrepreneurs by selling Ooredoo airtime to their local communities. Targeted to recruit 30,000 by 2016, the scheme will equip each woman with a business kit comprising a mobile phone, promotional content, as well as an operating manual, and also includes hands-on training to guide them on how to run the business.
Telecoms law set for approval this week Myanmar Times 27 Sep 2013
MPs are expected to finalise Myanmar’s new telecoms law on October 1, the first day of the eighth session of parliament. The Telecommunications Law bill was approved during the seventh session but President U Thein Sein sent it back to the Pyidaungsu Hluttaw with five recommended changes, a member of the Joint Bill Committee said last week. The president also recommended five changes to the Farmers’ Rights Protection Law and three to the Union Judiciary Law, which were also passed during the seventh session. Secretary U Saw Hla Tun told The Myanmar Times that the committee discussed the president’s proposed changes and released its recommendations to parliamentarians on September 26. “The Joint Bill Committee agrees with most of the president's remarks except for some proposed amendments to the Telecommunications Law. We cannot give any more detail than that at this point,” he said. MPs will likely discuss and vote on the proposed changes when the session opens on October 1. The final version will be enacted within seven days. “We will give priority to the three bills that were sent back to Pyidaungsu Hluttaw by the president ... I hope these three laws will be discussed and passed on the first day of the eighth session.”
HBO Increases Presence in Asia TV Asia 27 Sep 2013
HBO, HBO HD and Cinemax have secured carriage in Myanmar, making the flagship channel available to 23 territories in the Asia Pacific. In Myanmar, the three channels will become available to subscribers of Forever Group and Sky Net. RED HD, which is HBO Asia's 24-hour channel for Asian movies, will be available to Sky Net subscribers starting October 1. HBO Asia's distribution network has also grown with the addition of a new affiliate in Nepal. Starting October 1, HBO, Cinemax, HBO HD and BabyFirst TV will become available to Nepal's Dish Home subscribers. This marks the first partner for BabyFirst TV in the region.
Chunghwa Telecom and HTC team up to invest in Myanmar China Times 28 Sep 2013
Taiwan's largest telecom company, Chunghwa Telecom (CHT), together with leading smartphone maker HTC will cooperate with overseas firms to invest in the largest telecom company in Myanmar, according to Chunghwa chairman Lee Yen-sung on Wednesday. Myanmar Posts & Telecommunications (MPT), the target of the investment, is the largest state-run telecommunications company in the country. The group, consisting of CHT, HTC, Japanese trade firm Marubeni and French telecom company Orange, has signed a confidentiality agreement with MPT. In March 2013, former CHT chairman Lu Shyue-ching and HTC CEO Peter Chou signed an agreement to deepen cooperation between the two Taiwanese companies, including expanding their overseas business. The Myanmar government earlier granted ten-year 3G operating licenses to Norwegian telecom giant Telenor and Qatar's Ooredoo. CHT's consortium was first on the waiting list, according to officials. However, the Myanmar government said there were 91 firms interested in obtaining an operating license. Therefore, it was unlikely a consortium led by Taiwan would be chosen to fill the vacancy.
Mobile phones may regenerate the country’s withered banking system The Economist 28 Sep 2013
Mobile phones may regenerate the country’s withered banking system. For a foreigner at least, it is still a bit of a thrill to use an ATM machine in downtown Yangon. After years of carting around wads of dog-eared dollars to exchange for even larger wads of ancient, crumbling kyat, the local currency, immaculate new machines now disgorge crisp new banknotes. It is a minor miracle. Linked to the international payment system only late last year, hundreds of ATMs around the country can now be used on Visa’s payments system. The cash machines are a mark of real progress. During decades of brutal and isolating military rule, financial services suffered as much as any other sector. All foreign banks were kicked out of the country in the mid-1960s; from the mid-1990s onwards, American sanctions in particular cut the country off from most forms of international financial transactions. The domestic financial system withered away, too. Less than 10% of Burmese are thought to have a bank account. What could really transform things is a nationwide mobile-phone service. Mobile banking should be ideally suited to Myanmar. Even if banks were prepared to invest heavily in building physical branches, the country’s large (about 60m) and mainly rural population is spread out. “Done right”, says the Consultative Group to Assist the Poor, a pressure-group for financial inclusion based at the World Bank, “mobile banking has the potential to help Myanmar provide basic formal accounts and payment services to most of its citizens,” thus “leapfrogging” conventional banking altogether.
Qatar’s Ooredoo partners with Cherie Blair in Myanmar Arabian Business 29 Sep 2013
Qatari state-backed telecoms operator Ooredoo sign partnership with the Cherie Blair Foundation for Women to support women’s entrepreneurship in Myanmar. The innovative will develop a franchisee model to enable 30,000 women by 2016 to become entrepreneurs by selling prepaid Ooredoo airtime to their communities. Each of the women will be equipped with a business kit containing a mobile phone, promotional materials, and an operating manual. They will also receive hands-on training on how to run their businesses. The partnership was announced at the Clinton Global Initiative (CGI) Annual Meeting in New York at the weekend and is aimed at addressing the urgent need to engage more women in the country’s economic development.
Telenor Predicts Fivefold Myanmar Wireless Surge: Southeast Asia Bloomberg Business Week 29 Sep 2013
Telenor ASA (TEL) Chief Executive Officer Jon Fredrik Baksaas said mobile-phone subscriptions in Myanmar, a new market for the wireless carrier, will surge more than fivefold to about half of the population by the end of 2017. Telenor, the Nordic region’s largest phone company and one of two operators selected to build Myanmar’s telecommunications network, expects the license to be issued formally by the end of the year, Baksaas said. Services will start eight to nine months after that, he said in an interview in Singapore Sept. 28. “Penetration figures will grow from presently below 10 percent to a very visible figure in a very short time,” Baksaas said. “We shouldn’t be far away from 50 percent penetration already three years down the line.”
Telecom, and ICT investors and stakeholders to meet at Yangon CIOL 30 Sep 2013
More new licenses for foreign joint ventures or foreign entities are in the pipeline The 2nd INTO MYANMAR: Telecom and IT Global Summit 2013 will be taking place this week at Yangon, Myanmar from 3-4 October 2013. The Summit will be held at Inya Lake Hotel. Two new telecom licenses were recently awarded in Myanmar. The new Telecom Law has just been passed. Foreign investments in both the telecom and ICT sectors are welcome, and more new market openings are expected. Beyond the two new telco licenses awarded, more new licenses for foreign joint ventures or foreign entities are in the pipeline. Amongst the wide array of services permitted, the two new operators will be allowed to offer mobile connections, fixed line services, IT and Internet offerings. The need for upgrading internet/ICT infrastructure is urgent, and the demand for cloud computing for enterprises in all industries and in government is also urgent and huge. The Summit addresses the new opportunities in the Myanmar new telecom ecosystem, the urgent infrastructural requirements needed to be fulfilled & the IT and telecom bottlenecks needed to be cleared for the fast rollout of Myanmar's stock exchange this year.
Explosion predicted in Myanmar's mobe and slab markets - analysts The Register 30 Sep 2013
Market watchers are predicting an explosion in the handheld device market in Myanmar, driven by rapid infrastructure building, government reforms and the new mobile operator licensees Telenor and Ooredoo. Smartphone shipments will grow nearly six-fold to around six million in the next four years, while the number of tablets in the reclusive Asian state will jump more than eight-fold over the same period to over 400,000. Of course, these are still small numbers when put in the context of Myanmar’s 60 million + population, which makes it southeast Asia’s second largest nation. Despite ambitious government targets of an eight-fold increase in mobile penetration to around 80 per cent by 2016, there is still a lot of work to do, according to IDC ASEAN research manager, Daniel Pang. "While SIM cards are being issued at a hectic pace, much of the country still suffers from poor network coverage, and thus, they continue to be put up for sale in the black market instead of into new mobile phones,” he said in a canned comment. “Therefore, vendors will likely boost shipment quantities only in 2Q14 or 3Q14 once the telecom infrastructure has improved and more SIMs are available to consumers." On the plus side, infrastructure is being built rapidly and the country’s two new operators are offering SIM cards and services that even low wage earners can afford, according to a new IDC report, Myanmar Mobile Phone, PC, and Tablet 2013-2017 Forecast and Analysis.
Infrastructure
Alliance to boost safety at Myanmar airports Eleven Myanmar 21 Sep 2013
Sumitomo, together with NEC, NEC Networks & System Integration, Toshiba and Morita, has concluded an agreement with the Civil Aviation Department of Myanmar's Transport Ministry on the "Project for Improvement of Nationwide Airport Safety and Security". The project is designed to help improve aviation safety at Myanmar's major airports - Yangon, Mandalay, Nyaung U, Heho, Thandwe and Dawei - Sumitomo said in a statement released yesterday. The Japanese corporation is the prime contractor for the project. To satisfy International Civil Aviation Organisation safety standards, equipment such as Doppler VHF omnidirectional radio-range beacons and distance-measuring equipment, flight procedure design systems, various aeronautical lights, and communication control units will be supplied to improve air traffic safety. Fire engines, X-ray screening machines, explosive-detection devices and other equipment for airport security will also be installed as necessary. The project is expected to enhance Myanmar's airports' capacity to handle the burgeoning air traffic in the region by improving the safety and reliability of air transport and establishing more efficient air routes.
Making property work for JVs - The Fine Print Legal & tax insight Myanmar Times 22 Sep 2013
In a common scenario, a Myanmar citizen has acquired land and intends to contribute it to a joint venture with a foreign partner with the capital and the know-how to develop it. The difficulty the partners face is: How can the land be transferred to the joint venture given that it is prohibited for foreign-invested companies to own immovable property? Strictly speaking, Myanmar citizens also cannot “own” land. In Myanmar, the concept is that all land is owned by the state who administers it for the people. However, Myanmar citizens can obtain a land grant or a freehold. These are long-term leases from the state with elements of ownership, as the lease is easily renewable and can be sold to other citizens and passed on by way of inheritance. Foreigners – this includes foreign-invested companies – cannot obtain a land grant or a freehold. The Transfer of Immovable Property Restrictions Act of 1987 only allows them to lease immovable property (land and/or buildings) for a period of up to one year. The lease is renewable, but it may of course be an unsatisfactory situation for the foreign tenant to be at the mercy of the landlord every year.
Japan to finance water projects in Sagaing and Magway regions Eleven Myanmar 23 Sep 2013
Japan will finance projects to provide drinking to several townships in Sagaing and Magway regions, according to a report from the Japanese Embassy in Myanmar. Japan's small project assistance programme will provide US$ 116,464 for access to drinking water in Parami Ward of Sagaing Town, as well as US$ 110,545 and US$ 85,029 to water projects in Myaing Town and Taungtha Village in Magway Region, said the report. Parami Ward in Sagaing Town was built in 1990 and is located one and a half miles away from the Ayeyawaddy River. Residents have long had to rely on tube wells for drinking water, which contain calcium residue and and still face difficult access to potable water in the summertime. Similarly, Kyaw Village in Myaing Town and Taungtha Village in Chauk Township, Magway Region face severe water shortages in the summertime forcing residents to fetch water from nearby villages. A ceremony to open these projects was held on September 12, 13 and 14 this year attended by Mr Go Nakaya, second secretary of Japanese Embassy, Development Affairs Minister Tint Hlaing Myint of Sagaing Region, as well as various departmental officials and local residents.
Only a quarter of confiscated land being used: minister Myanmar Times 23 Sep 2013
Only a quarter of confiscated land being used: minister By Hsu Hlaing Htun | Monday, 23 September 2013 5 Less than one-quarter of all land concessions awarded to private companies have actually been developed, the Ministry of Agriculture and Irrigation has revealed, as it called on regional governments to move faster on resolving land disputes. More than 6400 companies have been awarded concessions totalling 3.931 million acres. However, only 955,796 acres – about 24.3 percent – is being used, the ministry said. The figures were revealed as Minister for Agriculture and Irrigation U Myint Hlaing warned at a meeting in Nay Pyi Taw on September 17 that companies which have not used land concessions for their stated aim would be stripped of the right to use the land. The latest figures also represented an increase on the 3.42 million acres that the ministry said had been awarded to private companies and state bodies to March 31, 2012.
Thailand, Burma aim to speed up Dawei development DVB 24 Sep 2013
Thailand and Burma have agreed to speed up the development of the Dawei Economic Zone, following talks between Thai Prime Minister Yingluck Shinawatra and Burma’s parliamentary speaker Shwe Mann on Monday, the Bangkok Post reported. Shwe Mann is on a five-day trip to Thailand, which will conclude on Thursday. Yingluck reportedly told him that officials from various state enterprises were conducting an economic study on infrastructure in Dawei, such as transportation and power and water supply. “Thailand and Myanmar [Burma] must work together to move this project forward and inform the public about the benefits of the Dawei deep-sea port,” the Thai premier is reported saying.
World Bank aids Myanmar power project AFP 24 Sep 2013
The World Bank approved Tuesday aid for a power plant project in Myanmar aimed at boosting electricity production in one of Asia's poorest countries. The Bank's board of executive directors authorized a $140 million interest-free loan to the Myanmar authorities, the development lender said in a statement. The credit is from the International Development Association, the institution's fund for the world's poorest countries. "The World Bank will support the installation of a modern, high-efficiency power plant in Mon State, as part of Myanmar's power expansion plan and the cornerstone of the World Bank Group's support for Myanmar's energy sector," the Bank said. New gas turbines, replacing aging ones, are expected to produce 250 percent more electricity with the same amount of gas and reduce emissions. "The project is the first step to bringing more and cleaner electricity to the people of Myanmar," the Bank said. Currently, more than a quarter of the population lives below the poverty line, and the electrification rate is among the lowest in Southeast Asia. In Myanmar, more than 70 percent of the people have no access to electricity.
Japan to aid Myanmar’s airport surveillance system Eleven Myanmar 24 Sep 2013
Japan will provide Myanmar with an airport surveillance system worth Y1.23 billion to be installed at six major airports, civil aviation authorities say. The six airports are Mandalay International Airport, Nyung Oo Airport, Heho Airport, Thantwe Airport, Dawei Airport and Yangon International Airport. Japan’s aid will include airport security, air traffic control, signal lamps, runway lights, fire extinguishers, X-ray machines, and scanners. The system will be provided as part of a loan agreement between the Myanmar government and the Japan International Cooperation Agency (JICA), reached in March of this year. On June 7, JICA also signed loan agreements totalling Y51.052 billion for three other projects with the Myanmar government, according to the JICA website. The three loans focus on developing life-sustaining infrastructure all over Myanmar.This includes supporting economic activity in ethnic areas through the provision of stable power supply, as well as infrastructure development in Thilawa, the planned site for the Thilawa Special Economic Zone.
Leading S Korean steelmaker to invest in Myanmar construction industry Eleven Myanmar 25 Sep 2013
South Korean multinational steelmaker POSCO (formerly Pohang Iron and Steel Company) will invest in Myanmar’s construction industry, according to a company official. To carry out the construction projects, Myanmar POSCO E&C (Engineering & Construction) Co Ltd was formed and the Directorate of Investment and Company Administration allowed temporary registration to POSCO Company on Monday. POSCO currently operates two integrated steel mills in South Korea, in Pohang and Gwangyang. In addition, the company also runs a joint venture with U.S Steel and Nippon Steel under two different companies, USS-POSCO and POSCO-Nippon Steel. In Myanmar, POSCO goes by the name of Myanmar POSCO, which manufactures and sells galvanized iron sheets. Daewoo International, one of its subsidiaries, has already entered Myanmar.
Yangon power plants in limbo Myanmar Times 26 Sep 2013
ork on power plants slated to generate some 300 megawatts of electricity in the Yangon area has halted awaiting government approval of a standard power purchasing agreement (PPA) for the industry, according to U Zeya Thura Mon, CEO of power plant developers Royal GK Pte Ltd. The construction stoppage comes as Myanmar projects a significant gap between electricity supply and demand, with the four plants together able to add some 7.5 percent to the country’s current capacity of 4012 megawatts, figures from the Ministry of Electric Power (MOEP) show. U Zeya Thura Mon expressed frustration that his firm thought it had an agreement in hand with authorities when it began constructing its plant, only to see the government not offer a PPA as the plant neared completion. “We brought in [foreign investors], built the project, and we are ready, everybody agreed on a deal,” he said. “Then it came time to sign the deal, and nobody signed.”
Myanmar's Dawei development seeks major investors Channel News Asia 27 Sep 2013
Bilateral ties between a changing Myanmar and its neighbour Thailand have long been important. However, the co-development of a massive special economic zone on Myanmar's western seaboard will need other investors and may have implications for the entire region. The Dawei megaproject in southeastern Myanmar is closer to Bangkok than Yangon or Myanmar's capital Napyidaw. The Thai government has now taken over responsibility for the project which was initially developed by Ital Thai, Thailand's largest construction company. A glance around Dawei reveals a completed small port, but much, including the necessary dredging to construct a deep water harbour remains undone. ITD's project engineer Pisit Girdmongkol, explained: "What you see behind (me) is the main port for the Dawei project. The shipping land will be shaped like an "L". Each phase will take about five years. At this point, I cannot confirm when it will all start. Also, the five years for each phase is a rough timeframe." Also missing are other major Asian investors crucial to developing Dawei for its strategic location.
General Electronic to help Myanmar’s gas turbines Eleven Myanmar 28 Sep 2013
General Electronic Int’l (GE) is poised to provide assistance to the Ministry of Electric Power to help promote the capacity of the existing gas turbines. GE will also give assistance in building new turbines projects. “As Myanmar is implementing for the development of the basic infrastructure, she is facing hardships in producing electricity, giving health care, and transportation in urban and rural areas. In order to solve these challenges, GE will render its technological know-how and other needs,” said Stuart Dean, CEO of GE’s ASEAN region. Recently, GE had hold a workshop titled “Moving forward to Power Up Myanmar” in Yangon. Moreover, GE has visited Tharkata power plant to know more about gas turbines. GE will provide US $ 7 million to start up courses on energy and power and explore ways to promote skills.
Authorities urge the hotels to finish construction before SEA Games Eleven Myanmar 29 Sep 2013
Authorities urge the companies which are building Shangrila Residence and Rose Garden Hotel to be operational for the upcoming SEA Games, according to an official from Ministry of Hotel and Tourism. Yangon and Nay Pyi Taw will be the two major locations that will have to provide the needed hotel rooms for the visitors. The government is hoping that the Shangrila Residence and Rose Garden Hotel would be ready for the upcoming event, according to Director Kaung Htut from Ministry of Hotel and Tourism. The two buildings are targeted to finish in late 2013 and will provide accommodation about 500 rooms, according to the ministry. Shangrila Residence and Rose Garden Hotel are invested by Thailand and Hong Kong respectively. Now the two buildings are in renovation state because there is demand for hotel rooms. “Now we have little hotel rooms with international standard. Thus we are providing what we can to help the constructing for international standard hotels,” the director said. Myanmar will provide more than 7,000 hotel rooms for forthcoming SEA Games held in Nay Pyi Taw, Yangon and Mandalay.
National Affairs
Military role has been reduced as the country has achieved political stability: Senior General Eleven Myanmar 21 Sep 2013
Military role has been reduced as the country has achieved political stability in the transition period to democratic system, Senior General Min Aung Hlaing informed the Thai Prime Minister Yingluck Shinawatra during their September 17 meeting in Bangkok. “I guarantee my country’s political stability and urge Thai businessmen to do business in Myanmar,” the Senior General was quoted as saying. The civilian role is more important in the development of the country, he added. Myanmar has started launching democratic system since 2011. Tatmadaw, the country's armed forces, has been working together with the new government in the reform process. Speaking at a recent interview on Myanmar Radio and Television, the Senior General insisted that the trend was irreversible. Senior General Min Aung Hlaing led a delegation from Myanmar to Thailand to attend the first committee meeting of senior military officials between the two countries. The Thai Prime Minister agreed on the encouragement of the Senior General to finalize the remaining tasks for designating boundary between the two countries. President Thein Sein accepted the importance of Dawei deep seaport, a joint venture with Thailand. Success of the project will depend on the bilateral cooperation between the two countries, said the Senior General. The Thai Prime Minister replied that both of the countries need to work closely for the project as it is a giant one. Cooperation needs to solve the problem of illegal Myanmar immigrant workers in Thailand, said the Senior General. The Thai Prime Minister highlighted increased efforts for commercial agricultural businesses and development at border areas of the two countries. The Senior General also discussed with his Thai counterparts various issues including border security, illicit drugs and illegal immigrant workers.
Constitutional changes key to improving Myanmar's economy: Aung San Suu Kyi Channel News Asia 21 Sep 2013
Opposition leader Aung San Suu Kyi said Myanmar's government is committed to improving the country's economy and a key part of that will be changes to the constitution and improving the rule of law to boost inclusiveness and unity in the country. Opposition leader Aung San Suu Kyi said Myanmar's government is committed to improving the country's economy. However, she emphasized that a key part of that will be changes to the constitution and improving the rule of law to boost inclusiveness and unity in the country. Suu Kyi was speaking on Saturday at the Singapore Summit conference held in Singapore's Shangri-La Hotel. She noted that only by establishing unity among its citizens, can Myanmar achieve genuine success for reforms. Suu Kyi was speaking to some 350 invited conference participants, comprising government officials and business leaders. Myanmar has been experiencing huge investment inflow into the country since it started opening its doors about two years ago. The government is committed to improving the country's economy as part of its reform. However, Suu Kyi emphasized that genuine reform will depend on how much inclusiveness and unity Myanmar can achieve. The key to that is changing the constitution and improving the rule of law.
Myanmar to hold National Dialogue by early 2014: minister Global Times 21 Sep 2013
Myanmar will hold National Dialogue for peace making throughout the country in the early 2014 with participation of all important stakeholders,said U Aung Min, vice chairman of the government's Central Peace Making Work Committee, at a ceremony on Saturday which falls on International Day of Peace. The ceremony on Trust-building for Peace held in Taunggyi, capital of Myanmar's northeastern Shan State, was attended by more than 50 organizations including representatives from ethnic armed groups,political parties and civil organizations. In a period of more than two years, some constructive foundations have been established despite existing conflicts between the government and some ethnic armed groups, said U Aung Min. To successfully hold National Dialogue, two stages including National Ceasefire Accord/National Ceasefire Agreement and Framework for Political Dialogue are needed, he said. He also disclosed that as the first stage, the National Ceasefire Accord/National Ceasefire Agreement is expected to be accomplished by the end of this October. A total of 16 armed groups will be invited, he added. The government is preparing to lay down "framework for political dialogue" with the participation of the government, army, parliament, nationalities, armed groups and political parties in November or December this year as the second stage, he said. So far since Myanmar President U Thein Sein's peace offer was extended in August 2011, a total of 14 armed groups have signed preliminary peace agreements with the government at state or central level. The government will continue holding peace talks with two remaining ethnic armed groups -- Kachin Independence Organization( KIO) and Palaung State Liberation Front(PSLF) or Ta-ang National Liberation Army (TNLA).
Myanmar approves UNESCO's peace education project Business Standard 22 Sep 2013
Myanmar has approved UNESCO's peace education project in northern Rakhine state. The country reaffirmed its commitment to promote peace education as a means of fostering mutual respect for cultural diversity at the school level. The project is to be jointly implemented by the UNESCO and the government in three townships in the state-Maungtaw, Buthidaung and Rathedaung with the fund support by the Belgium government. Under the project, 350 teachers from 40 conflicted-affected schools will be trained in peace education and it will benefit 10, 000 students, Xinhua reported. The project also aims to reactivate 40 parent-teacher associations and set up three community learning centers. Following the recent communal violence in Rakhine state which has affected hundreds of schools and thousands of students, the government and international community have identified peace education as one of the priority to address underlying causes of the communal tension. The overall aim of the peace education project is to enhance the capacity of schools teachers, students and their parents to facilitate inclusive problem-solving process and consensus- building around community priority and to strengthen the commitment to an inclusive civic national identity.
Myanmar prepares to enact Consumer Protect Law Eleven Myanmar 22 Sep 2013
Myanmar is preparing to enact the Consumer Protection Law in a bid to ensure safety of locally manufactured products, said Mr. Khin Maung Lay, Director General of the Ministry of Commerce. “The key point is to protect the consumers, and there are also promises [we] made to the other ASEAN countries. Meanwhile, if something goes wrong, the parties concerned seek a solution together, rather than getting punished,” the director general said during a workshop on consumer protection at the ministry office in Yangon. “Five nations of the ASEAN have already legislated on consumer protection. Myanmar will also enact the law in 2013. Once the law is passed, there will be effective legal enforcement,” he added. The consumer protection bill has been submitted to the parliament and it is to be discussed in coming parliamentary session, other sources confirmed. “As there are locally manufactured products, there are imported goods that come from foreign countries. They need to be approved by the FDA [Food and Drugs Administration] and are required to meet certain standards. Only FDA-approved products are allowed to enter. But, It’s hard to hold responsible the illegal foreign products,” Mr. Khin Maung Lay said. “If the goods illegally enter, there will be no guarantee for the public. Our desire is to improve the standards of locally manufactured goods,” he remarked. In the recent month, some foreign-imported palm oil had quality problems in Myanmar. The authorities are taking action on the issue and they pledged to encourage the use of specific logos and brands for products in the market.
Myanmar to draft political dialogue framework Eleven Myanmar 22 Sep 2013
Myanmar will start drafting a framework for political dialogue that will include the participation of government, military, parliament, national races, armed groups and political parties in November or December, says a government's peace negotiator. Aung Min, the vice chairman of the Union Peacemaking Work Committee, revealed the plan during the opening of a seminar on 'Trust Building for Peace' in Taunggyi in Shan State on Saturday. "We will start political dialogue as soon as a nationwide cease fire agreement is reached. Before that, we will have to discuss a necessary framework in coordination with the ethnic organizations. So we are preparing to draft a political dialogue framework in November or December. The framework will also be drafted in coordination with all those concerned," said Aung Min. The three-day seminar is being attended by more than 40 organizations, including ethnic organizations, and some veteran politicians who attended the Taunggyi conference in 1961.
Patterns of Military Behavior in Myanmar's New Legislature Asia Pacific Bulletin 24 Sep 2013
"Praetorian transition" is the term used to describe the transfer of direct military rule to a quasi-civilian government. Over a period of time, the military ratchets up or down the scale of praetorianism according to their ability and interests in seeking more--or less--control over policymaking. In modern politics, praetorianism refers to the unhealthy political influence of the military upon an emerging democratic civil society. In the case of Myanmar, the disbanding of the State Peace and Development Council (SPDC) in March 2011 has resulted in the armed forces (Tatmadaw) slowly moving down the spectrum of praetorian intervention. This started with an initial partial withdrawal from day-to-day politics in 2011. To date though the military has not fully disengaged from the highest structures of the post-SPDC state. The 2008 constitution, drafted by the military, has a number of legal instruments and institutions through which the Tatmadaw can still exert its influence and sway on Myanmar's political life and society.
NUP calls for constitution to be amended, not re-written DVB 25 Sep 2013
The National Unity Party (NUP), which was formed by the military junta in 1988, insisted on Tuesday that Burma does not need to draft a new constitution, although some provisions could be amended to satisfy the ethnic populations. The announcement follows months of heated debate over whether Burma should re-write or amend its controversial 2008 constitution, which grants the military 25 percent of seats in parliament and excludes opposition leader Aung San Suu Kyi from the presidency. Speaking to DVB after an event marking the party’s 25th anniversary, Central Executive Committee member Thein Htun defended the legislation and dismissed suggestions that it should be scrapped.
Residents protest the building of oil refinery in Dawei Eleven Myanmar 25 Sep 2013
Locals from Yinboat village in Dawei, Tanintharyi region have protested the building of a Chinese-backed oil refinery project. Three hundred residents from the area gathered on September 24 with posters citing President Thein Sein’s speech and the principles laid down by the Myanmar Investment Commission which call for environmentally friendly investment. "The employees working for us at the factory are people, not robots. If the poison gas comes out from the factory, the employees will be the ones who suffer first hand. I had health results for a number of employees who suffered respiratory tract infection," said presiding monk from Lay Tun Khan monastery. A precession began in Nyinmaw village and proceeded to Yinboat village which is due to be relocated when the project begins. The peaceful demonstrators hung posters at the entrance of the village road and listened to sermons given by monks. Residents voiced worries of oil spills and waste from the oil refinery.
Myanmar old guard clings to $8 billion jade empire Reuters 28 Sep 2013
Tin Tun picked all night through teetering heaps of rubble to find the palm-sized lump of jade he now holds in his hand. He hopes it will make him a fortune. It's happened before. "Last year I found a stone worth 50 million kyat," he said, trekking past the craters and slag heaps of this notorious jade-mining region in northwest Myanmar. That's about $50,000 - and it was more than enough money for Tin Tun, 38, to buy land and build a house in his home village. But rare finds by small-time prospectors like Tin Tun pale next to the staggering wealth extracted on an industrial scale by Myanmar's military, the tycoons it helped enrich, and companies linked to the country where most jade ends up: China. Almost half of all jade sales are "unofficial" - that is, spirited over the border into China with little or no formal taxation. This represents billions of dollars in lost revenues that could be spent on rebuilding a nation shattered by nearly half a century of military dictatorship. Official statistics confirm these missing billions. Myanmar produced more than 43 million kg of jade in fiscal year 2011/12 (April to March). Even valued at a conservative $100 per kg, it was worth $4.3 billion. But official exports of jade that year stood at only $34 million. Official Chinese statistics only deepen the mystery. China doesn't publicly report how much jade it imports from Myanmar. But jade is included in official imports of precious stones and metals, which in 2012 were worth $293 million - a figure still too small to explain where billions of dollars of Myanmar jade has gone.
Lawyer to form party for farmers, workers Myanmar Times 29 Sep 2013
Protecting the interests of the common man and woman - that’s how the leader of the Party for the Defence of Farmers and Workers says he plans to shake up Myanmar politics. The party’s 22 founding members, led by Mandalay-based lawyer and politician U Sein Hla, submitted an application to the Union Election Commission on September 24. “We set up this party to protect farmers and workers, who are really treated like second-class citizens,” U Sein Hla said last week. “We can see after 30 months that the president’s poverty reduction programs aren’t working. We can see that the government is not protecting farmers. In most regions, they are manipulated and mistreated by businesspeople and cronies. The local authorities protect the interests of those people,” he said. The party’s first major policy measure will be to ensure that local administrators resolve land disputes in a “fair and square” manner.
Thein Sein assigns 23 deputy ministers as President’s Special Taskforce Eleven Myanmar 29 Sep 2013
Myanmar President Thein Sein has assigned 23 deputy ministers as President’s Special Taskforce to deliver reforms more effectively, according to the press release on the President Office’s website. The President called a meeting with them on September 27, and he appointed the deputy ministers as the chairpersons of 26 newly formed Cabinet Sub-committees or the “Delivery Units”. “Under the Cabinet Committees led by Vice-President and Ministers, 26 Cabinet Sub-committees/ Delivery Units are already formed. As you deputy ministers are appointed as the leaders and chairpersons of the sub-committees, you all are assigned as dependable persons of President’s special taskforce,” President Thein Sein was quoted as saying in the press release. Thein Sein also said the ministers and government departments are so busy with routine tasks as well as amending laws, by-laws and procedures that they do not have sufficient time to keep in touch with the grassroots levels. As it also takes time to streamline the procedures at government offices, and to understand the mindset and behaviours of the general public, the deputy ministers are assigned as the special taskforce or the leaders of Delivery Units in order to devise more effective ways than the traditional methods in carrying out the reform tasks, said the President. The newly formed Cabinet Sub-committees cover many diverse areas ranging from foreign policies, tourism, transportation and construction to democracy and human rights as well as ethnics and peacemaking.
Myanmar President calls for cabinet committees to endeavor for better outcome Mizzima 30 Sep 2013
Myanmar President U Thein Sein has called for cabinet committees to endeavor for emergence of alternative ways and means to ensure better outcomes during the remaining 30 months of the present 5-year term of office, an official media reported Saturday. Addressing at the meeting to assign 23 deputy ministers to newly-formed 26 Cabinet Sub-committees/Delivery Units in Nay Pyi Taw on Friday, Thein Sein called on them to hold talks with civil societies, local and foreign experts and ordinary people, said the New Light of Myanmar. He stressed that the units comprising various departments led by deputy ministers will be responsible for making coordination with private sector and civil societies to be able to fulfill the socio-economic requirements of the people and to ensure national development. He continued that the government is making great strides in its sweeping reform processes, politically, economically and administratively to meet the desires of the entire people.
Retail & Manufacturing
Myanmar’s RMG export success a threat to Bangladesh Dhaka Tribune 20 Sep 2013
If Myanmar continues to enjoy duty and quota-free access to Europe’s market, Bangladesh’s emergence as a major exporting nation may come under serious threat, a commerce ministry official has said. He said the faculty could transform the “once outsider” nation into a magnet for labour intensive factories. According to the European Commission website, as a least developed country, Myanmar benefits from the most favorable regime available under the EU’s Generalised Scheme of Preferences (GSP), namely the Everything But Arms (EBA) scheme. The EBA gives the 50 least developed countries, including Myanmar, duty free access to the EU for export of all products, except arms and ammunition.
Myanmar approves new foreign investments in manufacturing sector Eleven Myanmar 25 Sep 2013
The Myanmar Investment Commission (MIC) approved new investments from six countries in the manufacturing sector between September 1 and 20, according to MIC reports. Businesses from Japan, Thailand, Singapore, Hong Kong, South Korea and the United Kingdom won the MIC’s approval to set up garment factories, automobile assembly plants, and manufacturing for construction materials. The MIC allowed garment businesses from Thailand, Hong Kong and the UK to operate factories under the cutting, making, and packing (CMP) system at the Hlaing Thayar Industrial Zone in Yangon. Japan’s JFE Engineering Corporation is set to join hands with the Ministry of Construction in manufacturing steel products related to construction materials in Tharkayta Township, Yangon. Another Japanese firm, ASMO Company, a subsidiary of the DENSO Group, was allowed to set up an automobile assembly plant at the Shwelinban Industrial Zone in Hlaing Thayar Township, Yangon. Thailand-based companies TOA Paint and Mantakanok will work with a local partner to manufacture paints in Myanmar, and another Thai firm is set to make plastic bags at the Dagon Seikkan Industrial Zone in Yangon Region. Singapore-based UPP Holdings is set to generate electricity at Ywama Electricity Station in Yangon, while a South Korean firm has already won approval to manufacture and sell animal food in Bago Region.
'Made in Myanmar' clothing, coming to a mall near you Global Post 30 Sep 2013
On the roads leading into one of Myanmar’s largest industrial zones, South Dagon, the potholes are big enough to bathe in. Inside factories, hives of workers toil for 12-hour stretches in cavernous cement rooms where the power shorts out frequently and the air is stale and humid. America’s closets are filled with blouses and jeans stitched by poor women hunched over sewing machines in tropical countries. And soon, as American and European sanctions melt away, Myanmar will join the list. This nation of 60 million is impoverished, plagued with joblessness and corrupt to the roots; in other words, it is an ideal playing field for global garment exporting conglomerates. Within the international clothing trade, there is little doubt that Myanmar’s garment export industry is set to boom. It has the demographics: 75 percent of the population is aged 15 to 64, the range considered “working age” in the developing world. It has the desire: many of them are eager to get out of the sun-baked fields and under a factory roof. And it has the location: wedged between Asian powerhouses India and China.