Top Story of the Week: Telecoms Bill Expected to be Enacted This Week
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.
TOP STORIES
Telecoms Bill Expected to be Enacted This Week
According to the Myanmar Times, the Telecommunications Law has been approved and is expected to be enacted this week. Although a copy of the final law has not been made public, the Myanmar Times recently published President Thein Sein’s five recommended changes, reporting that parliament accepted three of the five suggestions. The long anticipated telecoms bill is expected to pave the way for the rapidly developing telecoms industry to expand. In June, two international licenses were issued to Telenor and Ooredoo while other international firms continue to eye potential opportunities. Myanmar officials have also stated that there may be an additional round of tenders to supplement the first two international licenses. Myanmar officials have stated they have sought to liberalize the telecoms sector with the goal of increasing teledensity from under ten percent to eighty percent by 2016.
Myanmar Identifies More Laws for Amendment
According to Eleven Myanmar, the Myanmar government will soon begin the process of amending the Financial Institutions Law, last revised in 1990. According to the article, 18 laws have been identified to be amended, including five that have already been revised but were not published. Other laws to be amended include the: Insurance Law, Insurance Authority Law, Government Security Act, and Pensions Act. Pyoe Min Thein, a member of the committee responsible amending the law, said the committee will seek input from government and private banks in amending the law. In July, the Myanmar government passed the Central Bank Law providing it more autonomy from the Ministry of Finance.
New Mining Law Submitted to Parliament
A director at the Ministry of Mining, Aung Thuyein Win, announced on October 1 the Ministry had submitted a draft of the new mining law to parliament. Aung Thuyein noted that he hopes parliament will pass the bill within three months and then enacted within the following 90 days after its approval. According to Reuters, mineral rich Myanmar is feeling the impact of the delayed mining bill. Potential investors are being deterred by years of permit processing time, falling commodity prices and a decline in debt and equity market resources. According to Reuters, the new law is designed to clear the way for foreign investment in the sector. Myanmar has an exceptionally productive extractive industries sector, which has included gold, copper, lead, zinc, tin, as well as more sensitive products such as teak, jade, and natural gas.
Violence along Ethnic Lines flares again
Despite President U Thein Sein’s trip to the restive Rakhine state region, conflict between Buddhist and Muslim communities flared again last week. President Thein Sein arrived in Rakhine last Tuesday, his first trip to the state since violence broke out in June of 2012. According to a presidential official who asked not to be named, the focus of the trip was to address communal violence in the region. According to Fox News, during President Thein Sein’s two-day visit he was scheduled to hold meetings with Buddhist and Muslim communities. The latest violence left a Muslim women dead and scores of homes burned. The Rohyinga community, who many consider “Bengalis” rather than residents of Myanmar, remain a focal point of conflict. Police have made multiple arrests of figures from the RNDP and the 969 Movement, but reports persist that some authorities were complicit in the violence, or at least did not take steps to stop it. The Council will continue to monitor the situation.
IN THIS UPDATE:
Defense & Security
Japanese MSDF ships make 1st ever port call in Myanmar Global Post 30 Sep 2013
Japanese Maritime Self-Defense Force training vessels on a round-the-world voyage arrived in Myanmar on Monday for a five-day mission, marking the first ever port call by an MSDF vessel to the country. The Kashima TV-3508, Shirayuki TV-3517 and Isoyuki DD-127 under the command of Rear Adm. Fumiyuki Kitagawa were welcomed by Myanmar navy officials led by Commodore Maung Oo Lwin at Thilawa port, about 25 kilometers south of Yangon. The training ships Kashima and Shirayuki along with the escort destroyer Isoyuki have been traveling around the world since May with 730 MSDF members including 180 cadets. Yangon is the fleet's 17th destination since it started the voyage. The ships had previously visited ports in the United States and European countries, and they were at the port of Colombo in Sri Lanka last week.
Britain Preparing ‘Political’ Training for Burma Army Irrawaddy 2 Oct 2013
Britain is finalizing the details of military assistance that will see 30 high-ranking officers in the Burma Army receive specially tailored training, including instruction on how to operate within the rule of law, the head of a UK training center said. During an official visit to London by President Thein Sein in July, British Foreign Secretary William Hague said the country would begin engaging with the Burma Army. The aim of cooperation, Hague said at the time, was to try to foster accountability and respect for human rights in the Burmese military, which only handed power to a quasi-civilian government in 2011 but remains influential. The 30 officers of the Burma Army, known as the Tatmadaw, are set to attend a course in January. The training is jointly run by Cranfield University and the Defence Academy of the United Kingdom, and will take place in Burma.
US Maintains Block on Military Assistance to Burma Irrawaddy 4 Oct 2013
Following pledges to enhance military ties with Burma, the United States has maintained a block on military assistance to President Thein Sein’s quasi-civilian government for its use of child soldiers in armed conflict, US officials said on Thursday. Burma is one of five countries that will not receive US military assistance in 2014 under the Child Soldiers Prevention Act (CSPA), which places restrictions on security assistance and commercial licensing of military equipment for governments found to use child soldiers. State Department spokeswoman Marie Harf said the sanctions would affect Burma, Rwanda, Central African Republic, Sudan and Syria. The CSPA requires the United States to identify countries whose government armed forces or government-supported armed groups recruit and use child soldiers. Ten countries were identified on the 2013 list, published in the State Department’s annual Trafficking in Persons (TIP) report.
Economics
Myanmar VP calls for adequate facilities to sustain tourism growth Mizzima 30 Sep 2013
Myanmar's Vice President Dr. Sai Mauk Kham called for upgrading and providing adequate tourist facilities to timely sustain the tourist growth that Myanmar has already achieved, said an official daily on Saturday. Sai told Myanmar Tourism Development Coordination on World Tourism Day in Nay Pyi Taw on Friday that it is needed to provide adequate facilities including smooth entries, convenient and safe transport, good quality services of hotels, inns, restaurants, and sufficient qualified tour guides to be able to sustain the tourist growth, the New Light of Myanmar reported. Sai believed that the forum would bring forth a productive and fruitful outcome and serve as a driving force to carry out the program for the systematic and sustainable tourism development, not only for Myanmar but also for the whole region. Meanwhile, the number of international visitor arrivals in the country in the first eight months of 2013 has reached over one million, with an increase of 58 percent, compared with the same period of 2012. It is expected that the number of tourist arrival would reach 1.8 to 2 million this year. Foreign visitor arrivals hit 1.06 million last year.
Thai, Burmese govts fail to persuade Japan to invest in Dawei SEZ DVB 1 Oct 2013
Attempts by Thai and Burmese officials to persuade Japan to invest in the Dawei Special Economic Zone (SEZ) have ended fruitlessly, DVB has learned from a member of the Dawei SEZ management committee who asked to remain anonymous. Representatives of the three nations met three times last week, the last meeting being on Friday, 27 September. The Japanese delegation was led by the Ministry of Foreign Affairs Deputy Director-General of Southeast and Southwest Asian Affairs Department Hidenao Yanagi. The meeting followed preliminary talks between Thai and Burmese delegations on 25 September, and Burmese and Japanese delegations on 26 September. At a previous meeting in Naypyidaw with Japanese upper house member Eriko Yamatani, Burmese president Thein Sein requested the Japanese government to assist and participate in the Dawei SEZ. On September 26, Thailand and Burma announced that they had agreed to speed up the development of the Dawei industrial zone, following talks between Thai Prime Minister Yingluck Shinawatra and Burma’s parliamentary speaker Shwe Mann, according to a report in the Bangkok Post. Yingluck reportedly told Shwe Mann that officials from various state enterprises were currently conducting an economic study on infrastructure in Dawei, such as transportation and power and water supply.
Govt, business leaders discuss Myanmar's national export strategy Eleven Myanmar 1 Oct 2013
Government ministers and private sector representatives met at a workshop on Tuesday to formulate a national export strategy (NES) aimed at boosting Myanmar's trade and economic development. The Deputy Minister for Commerce delivered the opening speech at the National Export Strategy for Myanmar workshop in Yangon where he outlined the plan. "The national export strategy should comply with our national all-round plan. This is an important step towards the mainstreaming of trade and the country’s national development plans," said Pwint San, Deputy Minister for Commerce. The five-year export strategy will be developed in four stages: preliminary consultation, detailed discussion, designing the project and implementation, according to the deputy minister. "Designing the project will take more than one year and implementation of the project will take nearly four years," Pwint San added. Consultations will take place from 1 to 11 October at the headquarters of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) in Yangon and an action plan will be finalised by the end of this year. Myanmar’s cabinet recently approved the sectors to be included in the NES design initiative. They aim to increase exports of rice, pulses, beans and oilseed crops, fish and other sea food products, as well as textiles and garments and rubber.
Qorvis Communications and Omni Advisors expand U.S.-Myanmar Trade Council Digital Journal 1 Oct 2013
Recognizing Myanmar's enormous economic potential, Qorvis Communications joined with Omni Advisors today to expand the burgeoning Myanmar United States Trade Council (MUSATC), a members-driven trade organization aimed at facilitating greater trade and commerce between US companies and Myanmar. Robert A. Knutson, CEO of the Myanmar US Trade Council explained "Myanmar presents untapped business opportunities and is an excellent gateway to the large and lucrative markets in this new 'Asian Tiger' theater." He added, "Many US enterprises will wish to make Myanmar the hub of their operations in South Asia." The country's recent political and economic renaissance has contributed to a need for infrastructure and services across all sectors. As Myanmar continues its democratic reforms and corporate social responsibility programs, it is becoming an attraction for international capital in the heart of South Asia. Populated by 60 million people and the size of France, Myanmar is uniquely positioned amidst roughly a third of the world's people.
Myanmar intensifies efforts to prepare country for investors Oxford Business Group 1 Oct 2013
The government in Myanmar is ratcheting up its efforts to ready the country for a major influx of investors, as it continues making the transition to democracy. Myanmar’s decision to open up its economy has generated significant interest globally, with figures indicating that the country is on course to benefit from around $3bn in foreign direct investment (FDI) this year. However, the pressure is on to provide investors with the business-friendly environment they require, prompting questions about whether the country has the capabilities to roll out a highly ambitious reform programme within a short space of time. Aware that the challenges it faces are considerable, Myanmar’s government is working at a fast pace, passing a number of new laws and introducing key action plans, with more than 700 bills lined up to help steer through its reforms.
Myanmar's Proactive Invitation For Foreign Direct Investment (FDI) Shadowed By Anti-Muslim Violence International Business Times 2 Oct 2013
The escalating religious violence in Myanmar spells trouble for the nation’s much-anticipated economic and political reform. Sectarian tensions in the predominantly Buddhist Southeast Asian nation flared most recently in the western city of Thandwe, where at least five Muslims were killed by Buddhist mobs and many homes were burned. The ongoing unrest here and elsewhere in the country has far-reaching consequences. In addition to halting local commercial activities, sectarian violence causes severe damage to Myanmar’s reputation globally, which the nation can ill afford as it tries to recover from decades of military rule and attract foreign investment. In Thandwe, reports emerged of a 94-year-old Muslim woman being stabbed to death and as many as 70 homes being torched by mobs, the Myanmar Times reported Tuesday. An estimated 300 terrified residents of the city have fled since Sunday. “The continued sectarian violence targeting predominantly Muslims in Myanmar derives from economic, political, sociological underpinnings,” said Christian Lewis, Southeast Asian expert for the Eurasia Group, an economic and political risk consultancy, in an email to International Business Times. “These conflicts are very unlikely to be resolved in the foreseeable future, particularly in areas with high or concentrated populations of Muslims, such as Rakhine State and some of the main commercial corridors through Bago Division and Mandalay Division.”
Myanmar's economy yet to see real progress - Suu Kyi Eleven Myanmar 2 Oct 2013
Opposition leader Aung San Suu Kyi has told media that the Myanmar has yet to see real economic progress as most people's living conditions have not improved. Suu Kyi, chairperson of the National League for Democracy, made the critical remark during a meeting with the media in Nay Pyi Taw on Tuesday. "Myanmar's economic situation is not good at present. Briefly speaking, there is no real progress. We can say this judging by the people's living conditions. Their living standards have not improved yet," said the opposition leader. She also blamed little investment in the country on the lack of rule of law and basic infrastructure. Many business people complain that government ministries are slow and inefficient to deal with. Suu Kyi added that national projects should be implemented without heavily depending on foreign investment. "Set aside what the experts have said. We can know about this when we talk to the public. It is common knowledge that foreign investment does not improve as much as expected. Shall we wait for investment? Meanwhile, can't we do what we should do for our own people?" added Suu Kyi.
Myanmar to tap ADB for Dawei loans Bangkok Post 2 Oct 2013
The stagnant Dawei deep-sea port and industrial project took a small step forward after Myanmar agreed to secure loans from the Asian Development Bank (ADB) to invest in significant infrastructure development. Deputy Prime Minister and Commerce Minister Niwatthamrong Bunsongphaisan said yesterday that at the recent tripartite meeting with Thailand and Japan that Myanmar remains strongly committed to Dawei, saying that the project will play a significant role in the nation's future economic development. Thailand, Myanmar and Japan held a meeting in Yangon last Friday to discuss ways to get the Dawei deep sea port and industrial project off the ground. It was the first tripartite meeting with Japan attending as a potential third partner in the Dawei development project. In previous meetings of the joint high-ranking committee involving Thailand and Myanmar, Japan participated only in the capacity of an observer. The neighbouring Southeast Asian nations have high hopes that Japan will eventually agree to hold a stake in Dawei SEZ Development Co (DSEZ), a special-purpose vehicle set up to manage Dawei's port and special economic zone.
CORRECTED-Myanmar to get more profit from controversial Chinese-backed mine Reuters 2 Oct 2013
Myanmar has signed a revised contract that increases its share of the profits from a controversial Chinese-backed copper mine, the country's largest, officials said. The revision is seen as an attempt by the government to appease public anger over the project by giving the country a bigger share of the profits, after protests last year that triggered a violent police crackdown. The new terms give the government 51 percent of the profits from the Letpadaung copper mine in Monywa, 760 km (472 miles) north of Yangon, far more than its original 4 percent share. The mine's operators, Union of Myanmar Economic Holdings Ltd (UMEHL), which is owned by Myanmar's military, and Myanmar Wanbao, a unit of China North Industries Corp, a Chinese weapons manufacturer, will get 19 percent and 30 percent respectively. Under the original contract, the UMEHL got 45 percent and Myanmar Wanbao got 51 percent of the mine's profits.
Myanmar to effectively utilise international aid for development Two Circles 2 Oct 2013
Myanmar President U Thein Sein has called for effective and efficient use of international air and grants for the country's development projects. Such aid and local and foreign investment is to be used in implementing various development works and for this a central committee for managing international aid has been formed, the president said, reported Xinhua Wednesday. The committee also made arrangements to ensure effective utilisation of natural resources and improve people-centred services. In January 2013, Myanmar launched its first Development Cooperation Forum involving local and international organisations along with the private sector. Measures for generating more income at home and international aid for development of Myanmar were also taken. Significantly, after Myanmar settled a $430-million debt early this year owed to the World Bank since 1973, the World Bank Group (WBG) supported Myanmar with a $80-million grant in carrying out national community-driven development project. The project was designed to help 3.5 million people in rural communities with improvements in infrastructure for six years.. As a follow-up, the WBG in September approved again a $140-million interest-free loan to Myanmar for building a new gas-fired power plant in Mon state to increase reliable electricity for the people of Myanmar.
SINGAPORE PRESS-Temasek unit eyes Myanmar opportunities-Straits Times Reuters 3 Oct 2013
A unit of Singapore state investor Temasek Holdings Pte Ltd is eyeing investment opportunities in Myanmar following its foray into Cambodia last week. "We are looking at Myanmar, we're learning how to operate there," Fullerton Financial Holdings' chief executive Gan Chee Yee told the Straits Times. It is a "market which obviously has potential," he said. Fullerton, which has financial institutions in emerging markets, had total assets of S$40.9 billion ($32.74 billion)as of Dec 31, 2012. ($1 = 1.2493 Singapore dollars) (Reporting by Saeed Azhar; Editing by Sunil Nair)
7.8% annual growth for 6 years seen for Myanmar auto market The Nation 4 Oct 2013
Myanmar's automotive market is likely to grow at a compound annual growth rate (CAGR) of 7.8 per cent from 2013-2019, driven by a growing economy, infrastructure development and increasing income. Dushyant Sinha, associate director for automotive practice, Asia-Pacific, at market researcher Frost & Sullivan said that real growth is likely to start only after 2014. Frost & Sullivan believes that the market, currently dominated by used vehicles, is likely to grow at a CAGR of 7.8 per cent to reach 95,300 units in 2019 due to greater integration with the rest of Asean. "However, factors such as unpredictable regulatory changes, high car prices, an under-developed auto service market and inadequate road infrastructure might hinder the potential growth," Sinha added. He noted that after decades of military control and closed-door policies, Myanmar has gradually opened up its economy to foreign trade and investment. He added that significant developments were witnessed in 2012, particularly the endorsement of the long anticipated foreign investment law. Besides, the banking, finance and insurance sectors have also undergone various reforms as a part of the government's efforts to improve business environment. A young labour force with a high two-wheeler ownership promises to become a potential car-buying group in the long term, Sinha said. He added that Myanmar is highly dependent on two-wheelers, accounting for more than 80 per cent of the market, while passenger cars represent 11 per cent. Meanwhile, trucks and buses only make up 3 per cent and 1 per cent respectively.
Ford Celebrates Official Opening of First Myanmar Dealership WSJ 4 Oct 2013
-- RMA Group and Capital Automotive open new Ford dealership facility, exemplifying Ford's global customer service standards and commitment to offering a world-class ownership experience -- Ford emphasizes commitment to skills training for employee technicians, sales and service people -- Starting line-up of One Ford vehicles for Myanmar includes Ranger and F-Series pickups, Explorer and Everest SUVs, as well as Taurus passenger car -- Ford announces 5 year/100,000km warranty on all Ford vehicles, representing the most comprehensive coverage in Myanmar Ford Motor Company today celebrated the grand opening of the first authorized Ford dealership in Myanmar. Located in Yangon, the country's commercial center, the new state-of-the-art facility officially establishes the presence of the Ford brand and global vehicles in the rapidly developing country. In April, Ford became the first global automaker to announce its brand's official entry into Myanmar market through an agreement with the RMA Group, an emerging markets specialist with operations across Asia and Africa, and Capital Automotive Ltd., a subsidiary of leading Myanmar conglomerate, Capital Diamond Star Group.
Ford Sees Bright Road Ahead in Myanmar Industry Week 4 Oct 2013
Ford Motor Co. (IW 1000/8) officially opened its first authorized dealership in Myanmar Friday, joining a rush to set up shop in the former junta-ruled country as the West rolls back sanctions. Despite price tags beyond the reach of many in the impoverished nation, the auto giant said more than 1,500 customers had already visited the showroom since its "soft launch" two months ago. Myanmar's population of 60 million and growing demand for cars "excites us," said Ford regional manager David Westerman. "That's what is going to create that growth in the coming years and decades ahead," he said. Foreign investors are eagerly eyeing the resource-rich country following dramatic political and economic reforms since military rule ended in 2011. Huge import taxes and international sanctions aimed at the previous regime had meant vehicles were too expensive for most people, but recent changes have seen a sharp increase in demand for four wheels. Many cars on the roads in Myanmar are second-hand imported Japanese vehicles. New imported cars remain expensive, with the Ford Explorer starting from $105,000. The Thai-made Ford Single Cab Ranger, which is classified for commercial use and therefore not subject to the same level of import taxes, has a price tag of $22,000 and upwards. Foreign auto makers are also looking to set up manufacturing facilities in the country. Nissan Motor recently unveiled plans to launch production in Myanmar with its Malaysian partner Tan Chong Motors, following in the footsteps of Suzuki.
Myanmar honing investment laws to ensure a level playing field for all, minister says The Nation 7 Oct 2013
Myanmar is drafting several laws and regulations to create a more level playing field and more favourable investment climate. Set Aung, deputy minister of national planning and economic development and vice governor of the Myanmar Central Bank, told the recent Myanmar Global Investment Forum in Nay Pyi Daw that the foreign investment law was amended last week. Rules and regulations have come out. The foreign investment law has become much more transparent and predictable. Recently, the Myanmar citizen investment law came out, but rules and regulations for the law have yet to come out. However, they should come out soon. The Myanmar citizen investment law and foreign investment law try to ensure a level playing field for foreign investment, domestic investment and public investment. "The level playing field and the favourable investment climate - these are focuses that the Myanmar government has, particularly to improve the investment sector in the country. The foreign investment law and Myanmar citizen investment law particularly on the investment side also have another law related to investment called the Special Economic Zone Law. "We used to have the Special Economic Zone Law and Dawei Special Economic Zone Law, which was enacted in January 2011 before the new government took over, but at that time, these two laws were found unattractive in inducing foreign and domestic investment to come to a special economic zone. "That's why we revised the special economic zone law very rigorously - 80 per cent of the content of the law has already been revised. The new special economic zone (SEZ) law is going to be coming out very soon," he said. The new SEZ law has been approved by parliament and is due to be approved soon by the parliament and then will be enacted.
Mitsubishi Motors to sell pickup trucks in Myanmar in 2014 Reuters 7 Oct 2013
Mitsubishi Motors Corp will start selling its pickup trucks in Myanmar around January next year, it said on Monday, joining the rush by global carmakers to offer new vehicles in the Southeast Asian country's nascent auto market. Mitsubishi Motors, which already has a shop in Yangon that provides after service to used Mitsubishi cars, will import its pickup truck L200 from Thailand and sell them in Myanmar, the company said in a statement. Japan's Nissan Motor Co, Suzuki Motor Corp and Mazda Motor Corp, as well as U.S. carmakers Ford Motor Co and General Motors, are already selling or have expressed intentions to sell new vehicles in Myanmar that until recently was under international economic sanctions.
Foreign investors still cautious about Myanmar The Nation 7 Oct 2013
Despite strong effort by the Myanmar government to introduce reforms, especially in the business sector, the country still faces a lot of challenges that are keeping foreign investors away, a senior official has admitted. The key challenges faced by the business sector include infrastructure problems such as insufficient power supply, poor roads and logistics, as well as the lack of skilled labour. Aung Naing Oo, director-general of the Directorate of Investment and Company Administration (DICA) at the Ministry of National Planning and Economic Development, said DICA's two key responsibilities involved investment and the registration of corporations. "We have made a lot of improvements. We have been able to revise our new foreign investment law, create a better investment environment in our country, as well as attract foreign investment in Myanmar, which was a key achievement of DICA last year," Naing Oo said. The country had revised the new special economic zone law and it was awaiting parliament approval, he said. Before the end of this year, Myanmar would have this new zone law, which would grant foreigners longer tax waivers - from five years to seven. And import and export fees should be processed within the economic zone. "Meanwhile, we are preparing to revise the existing Myanmar Companies Act in order to make things easier for individual investors. We are not only protecting local businesses, but also foreign investors. The new foreign investment law will provide full protection to investors doing business in Myanmar," he added. Naing Oo said that as a member of Asean, Myanmar needed to protect the region's business community. "We are working very closely with the Asian Development Bank [ADB] for technical and financial assistance for the revision of Myanmar Companies Act and we need time.
Myanmar-Thailand border trade amount differ fourfold in one month Eleven Myanmar 7 Oct 2013
Myanmar-Thailand border trade amount has differed more than fourfold in one month time, sources from Ministry of Commerce say. Myanmar has illegally imported beverages, gasoline and handsets value of US$132 million, according to sources. According to the statics announced from both countries during July 2013, Myanmar trade amount is over US$42 million and Thailand is over US$173 million. The traders have mostly used Myawady border trade route and the illegal imported things like beverages, gasoline, seasoning powder and handsets which Myanmar government didn’t allow are traded. Myanmar has six border trade points along Myanmar and Thailand border. Around Myawady trade zone, there are 22 places which are trading illegally. Illegal trading is much more than official trading and made trade deficit, according to an official from border trade department. Ministry of Commerce has taken action against illegal trading and seized beverages, beer, handsets, timber and jades worth of US$1.4 billion from Myawady and Tarchileik border trade routes in ten months time.
Ageing could block development Myanmar Times 7 Oct 2013
The elderly population in Myanmar is accelerating at a rate unparalleled in the region and without careful government planning could be a roadblock for economic advancement, an international NGO has warned. “Population demographics are based on a pyramid structure, but by 2050 there will be a serious ageing problem in Myanmar with no economically active group to run the country,” Help Age country director Tapan Barman told The Myanmar Times last week. To keep the country’s economy on an upward trajectory, the goal must be to “keep older persons economically active”, especially as the country develops and younger people move away from the agricultural sector, Mr. Barman said. It is predicted that by 2050, one-quarter of Myanmar’s population will be considered aged. However, Mr Barman warned this could underestimate the scale of the problem. A complete census has yet to be undertaken, meaning the population of older people could be much higher than the current estimate of 9 percent. Additionally, while the international cut-off age for the older generation is 65, based on health indicators it is about 55 in Myanmar.
Energy
Shwe Gas project sets ‘bad example’ for investment in Burma DVB 30 Sep 2013
The controversial China-backed Shwe Gas project sets a bad example for future investments in Burma’s extractive industries and should be suspended pending genuine regulatory reforms, a new report said on Monday. The 43-page report, compiled by the Shwe Gas Movement (SGM), documents serious abuses linked to the junta-era project, including forced labour, land grabs, pollution and an exacerbation of ethnic conflicts. Villagers living near the 800-kilometre pipeline, which cuts through western Arakan state and the conflict-torn northern Shan plateau en route to China, report an influx of rights abuses since construction began. SGM says that boys as young as 14 have been recruited by foreign sub-contractors to work as bricklayers or road labourers, while adults – most of whom have been forced to abandon their traditional livelihoods – are routinely underpaid. “A villager is hired at a rate of 6,000 kyat [US$6.25] per day at first, but in reality the villager is given only 2,000 kyat [US$2.08] per day,” a local worker told SGM. “If the villagers oppose and complain against [the contractor] about the wages, the villagers are fired from their jobs.”
Myanmar's oil progress continues UPI 3 Oct 2013
Interra Resources Ltd., a company based in Singapore, said Thursday it completed development at the Yenangyaung oil field in Myanmar. Interra said it completed development of well YNG 3258 in the oil field, characterizing it as the 18th well designated as an oil producer for the company in Myanmar. Interra said its primary objective at YNG 3258 was to accelerate production from producing oil wells in the reservoir. It said the well tested at a rate of 60 barrels per day, confirming it as an oil producer. The company started drilling YNG 3258 in July. It gave no indication of the reserve potential at the Yenangyaung oil field but the U.S. Energy Information Administration said crude oil production in Myanmar is "minimal" though increasing. The country formerly known as Burma is a net oil importer.
Myanmar to earn US$ 900 million a year from gas pipeline Eleven Myanmar 4 Oct 2013
According to a recent report by the Shwe Gas Movement, Myanmar will get US$ 900 million a year from the Myanmar-China natural gas pipeline. The twin Shwe oil and gas pipelines was built by the China state-owned National Petroleum Corporation (CNPC) export natural gas and crude oil from Myanmar to China. At present, only the natural gas has been in operation while the crude oil pipeline is to be complete by the end of this year. The pipeline is 793 kilometres long and started operations on May 30. The Myanmar government has announced it will receive a yearly amount of US$ 1.8 billion, for a period of 30 years altogether the government will obtain US$ 54 billion according to the Shwe Gas Movement. Moreover, Myanmar will also get 16 percent as value added tax from crude oil pipeline that will export 22 million tons of crude oil to China. CNPC has signed a Memorandum of Understanding (MOU) with the Ministry of Energy in 2008 to buy natural gas from offshore Rakhine State. Shwe oil and natural gas pipelines start near Kyaukphyu, and run through Mandalay, Lashio, and Muse before entering China at the border city of Ruili in Yunnan province. The pipelines pass areas where conflict is still prevalent between the Myanmar army and ethnic armed groups.
India’s Tata to develop coal power plant in Pathein Myanmar Times 6 Oct 2013
Indian power producer Tata Power has reached an agreement with the government to build a new coal-fired plant in Ayeyarwady Region, officials said. Deputy minister for electric power U Aung Than Oo told The Myanmar Times that the two sides had agreed in April in general terms on a contract to build at least one 660-megawatt plant in Nganyoutkaung, a sub-township of Pathein. “A feasibility study has already begun,” he said. “I cannot say when it will be finished or how much investment it will require. That will be agreed on next.” Although details are unclear, Tata has said it could build two 660-mw coal-fired plants in Myanmar that would become operational before 2020. The deal comes after the firm won a US$1.8 billion contract in June to build two 660-mw thermal power plants in Vietnam. U Ko Ko Naing, a deputy chief engineer for Ayeyarwady Region, said that the first phase would probably include two turbines capable of generating 330 mw each.
Financial Services
CB Bank to introduce overseas money withdrawals in partnership with MasterCard Thura Swiss 3 Oct 2013
According to U Pe Myint, Managing Director of Cooperative Bank (CB), the bank is now in the process of introducing a new service for its debit card holders which would allow them to access cash from their Myanmar accounts when travelling abroad. The bank has been successful in testing the service with the MasterCard network in China, Singapore and Thailand and is planning to test in the UK and the US shortly, he added. The bank is now preparing the infrastructure needed to launch the service. Meanwhile, Central Bank regulators are reviewing the service. According to an official from the Central Bank, they are weighing the pros and cons of the service as well as considering the consequences of allowing other banks to begin similar services. In September 2012, CB bank reached an agreement with MasterCard to launch its debit card network at ATMs and other point of sale locations such as restaurants, convenience stores, supermarkets and hotels in Myanmar. The bank is reportedly also planning to expand its offerings through other payment networks such as Visa and China Union Pay.
Myanmar Central Bank plans to launch mobile banking scheme Eleven Myanmar 4 Oct 2013
The Central Bank of Myanmar is planning to launch a mobile banking system in October, according to bank officials. The Central Bank has submitted proposals and it will start a final phase on banking procedures after announcing mobile banking instructions. "We have submitted the many proposals to respective departments to launch mobile banking system. We are also planning to operate this system in October and going to issue the instructions as long as use the system," said an official from Central Bank. The local private banks such as Co-operative Bank, Inwa Bank, Myawady Bank and First Myanmar Private Bank have presented their proposals to the Central Bank to operate mobile banking systems. The Central Bank has already informed some private banks that to prepare for mobile banking services. If some private banks opt to open mobile banking services, they will use mobile network operators or other solution providers.
Myanmar to amend 23-years old financial institutions law Eleven Myanmar 6 Oct 2013
Myanmar will soon amend its 23-years old financial institutions law, according to officials at a recent press conference. The conference was held on October 5 at the office of the Myanmar Banks Association. “The law is too old as it was enacted in 1990. That’s one reason. And the country has made many changes in its politics and economics, as well as in its international relations. So the law needs amendment to keep up the changing circumstances. The law will be amended so that it can meet the needs of future financial market,” said Aung Thaung, the chairman for Development Committee of Banks and Financial Institutions. Myanmar has identified 18 “outdated” laws and so far, five out of them have already been amended. Four of them are related with the United Nations and nine others include laws such as Insurance Law, Insurance Authority Law, Government Security Act, and Pensions Act. “We [the committee] held today’s meeting to keep in touch with local banks. They include government banks and local private banks. The central bank is now independent as the central bank law is already enacted. The private banks will also take part in discussions related to amending the law. The meeting is aimed to listen to their voices and financial experts,” said Pyoe Min Thein, a member of the committee.
Food & Agriculture
Parliament approves farmers’ bill Irrawaddy 4 Oct 2013
Burma’s parliament on Thursday approved the Farmers Rights Protection and Raising Interest Bill, ignoring President Thein Sein’s recommended amendments. Win Myint, lower house MP for Bassein [Pathein] township, said: “This bill provides for the formation of a farm products administration board, and regional governments are to assign appropriate and experienced individuals to it for approval. “The bill will allow agricultural stipends for farmers, and keep product prices balanced,” he said. “The administration will be tasked with stepping in whenever necessary to enforce a control on prices.” A day earlier, on 2 October, the lower house of parliament approved a bill amending the 1954 State Insignia (Restricting Ornaments) Act, with a clause that includes a punishment for using images of Gen Aung San in public protests. As per the amendment, individuals caught using such pictures or paraphernalia during a public demonstration can be sentenced to one year imprisonment or a fine no more than 50,000 kyat (US$50) or both.
Myanmar sees encouraging foreign engagement in agricultural sector Xinhua Net 4 Oct 2013
Myanmar has seen some encouraging foreign engagement in the development of its agricultural sector, in which foreign investment accounts for only 0.43 percent of the total. The International Fund for Agriculture Development (IFAD) recently granted 300,000 U.S. dollars' aid to Myanmar to carry out project for agricultural development. The 18-month project from October 2013 to March 2015 will be implemented in three villages of central Magway region. The project will mainly focus on capacity building courses for rural development, workshops and demonstration on development of agricultural and livestock sector. Civil society organizations and donors from home and abroad will be among those taking part in the project along with government departments. IFAD is also cooperating with Myanmar for huge investment by private sector on required high technology and processing plants for export of agricultural produces including paddy to the international market. Besides, Tony Blair Association will also provide necessary assistance for rural development and help Myanmar draft electrification and drinking water supply plan and comprehensive development plan. Early this month, two companies of Myanmar and Japan vowed to cooperate in producing rice in Myanmar and then export them to third countries.
Foreign Affairs
Japan to increase investment in Myanmar education Mizzima 2 Oct 2013
The Japan International Cooperation Association (JICA) office in Myanmar has announced that its association will pledge¥1.35 billion (around $13.5 million) towards the advancement of engineering subjects in two technology universities in Yangon and Mandalay. This project is a five-year endeavor that will begin on 5 October 2013 and continue until 5 October 2018. Its major aim is to support the curriculum at the two participating Myanmar universities. It will also facilitate the development of the schools’ Human Resources departments that are needed to advance the ability and potential of students and education officers. Moreover, the project will supply the participating universities with teaching and learning aids. The JICA announced that they will conduct research on the universities’ current course syllabuses and will upgrade those of several major subjects, including Civil Engineering, Mechanical Power (MP), Electrical Power (EP), Electronic Engineering (EC), Mechatronic (MC) and ICT.
U.S. urges Myanmar to thoroughly investigate Thandwe violence Mizzima 3 Oct 2013
The U.S. Embassy in Myanmar on Wednesday issued a press release condemning violence in Thandwe, Rakhine State, urging Myanmar authorities to respond quickly and decisively to the violence and protect all the residents and their properties. A Director of a Myanmar government office who does not want to disclose the identity told Mizzima that “handlings [of the violence] differ according to areas. In previous violence, people criticized that the police officers just stood by watching the violence and did nothing." The Director said that they have held meetings to effectively respond to such violence by giving more authority to local officials. The press release says that “the United States strongly condemns such acts of violence” in Thandwe. It also urges the authorities to thoroughly investigate and hold accountable those responsible for the violence, and provide all necessary protection and assistance to the victims and other vulnerable populations. It calls on religious and civil society leaders, and citizens "to stand against continued violence targeting Muslim communities, and to promote understanding, mutual respect, and peaceful co-existence among all people in this diverse country.”
China touts Myanmar's potential UPI 4 Oct 2013
Myanmar is entering a period of development that should encourage foreign investors to warm to the former junta, China's envoy to the nation said Friday. Myanmar President Thein Sein has been praised for steering the country forward politically following general elections in 2010. The election ended a long period of military rule. Chinese Ambassador to Myanmar Yong Houlan told the official Xinhua News Agency in Beijing the government in Myanmar shared many of the common goals for the region. "Myanmar is entering into a period of socio-economic development. The inflow of foreign investment and technical know-how is the need of the country for development," he said in an interview published Friday. "It should be said our cooperation potential is immense, the space of cooperation is broad."
Opportunities and risks in Myanmar's chairmanship Bangkok Post 5 Oct 2013
No country resembles a laboratory of political and economic development more than Myanmar. A country with effectively two capitals, old and new, in Yangon and Nay Pyi Taw, Myanmar is briskly moving from one reform to another. Its multiple exchange rate system has been unified and stable. The infrastructure is receiving facelifts all over, much slower than demand but moving forward nevertheless. Human resource capacity is being bolstered in short order. Yet none of these efforts appear to be in step with the growing demands and expectations for a country that came out of isolation just two years ago. All eyes in Myanmar are fixated on the road ahead, starting this year with the Southeast Asian Games in December and next year with the Asean chairmanship, culminating with presidential polls in 2015. Its Asean chairmanship will have much to say about how Myanmar proceeds into its critical election year and how Asean finalises its plan to be a regional community by the end of 2015, as stipulated in the Asean charter. The Asean chairmanship next year thus comes at a momentous time for both Myanmar and for Asean. It will be a vindication and deliverance in view of the global and regional pressure that resulted in Myanmar's decision to skip its rotational turn in 2006. Next year will be the first time Myanmar has chaired Asean since it joined the organisation in 1997. As Asean chair, Myanmar will have an unprecedented opportunity to shine and display its rich history and ongoing reform process towards greater democratisation.
As Obama’s Asia “pivot” falters, China steps into the gap The Malaysian Insider 6 Oct 2013
When then US Secretary of State Hillary Clinton declared two years ago, "We are back to stay" as a power in Asia, the most dramatic symbol of the policy shift was the planned deployment of 2,500 US Marines in northern Australia, primed to respond to any regional conflict. At this point in time, however, there is not a single US Marine in the tropical northern city of Darwin, according to the Australian defence ministry. Two hundred Marines just finished their six-month tour and will not be replaced until next year, when 1,150 Marines are due to arrive. The original goal of stationing 2,500 Marines there by 2017 remains in place, but the lack of a US presence there two years after the policy was announced underlines questions about Washington's commitment to the strategic "pivot" to Asia. President Barack Obama's (pic) cancellation of a trip this week to four Asian nations and two regional summits due to the US government shutdown has raised further doubts over a policy aimed at re-invigorating US military and economic influence in the fast-growing region, while balancing a rising China.
ICT
Telenor eyes Myanmar wireless surge Bangkok Post 30 Sept 2013
Telenor ASA 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, Mr Baksaas said. Services will start eight to nine months after that, he said in an interview in Singapore on Sept 28. "Penetration figures will grow from presently below 10% to a very visible figure in a very short time," Mr Baksaas said. "We shouldn't be far away from 50% penetration already three years down the line." Myanmar selected Telenor and Ooredoo QSC of Qatar in June, opening up one of the world's last remaining untapped markets. The expansion in Myanmar will boost Telenor's sales by 7% to 8% in 2020, according to an August estimate by Swedbank AB. Mr Baksaas declined to give financial targets for the Myanmar investment. Telenor and Ooredoo beat nine other bidders including Singapore Telecommunications, billionaire George Soros and Bharti Airtel in the final stage. The licenses allow the carriers to run a nationwide wireless network serving Myanmar's about 59 million people for 15 years. The license term will start when the license is formally issued, said Mr Baksaas, who joined Telenor in 1989 and has been its CEO for 11 years. Myanmar, which is a cash society, will benefit from the ability to use mobile phones for financial transactions such as money transfers when they become available, said Mr Baksaas, who was in Singapore between visiting Myanmar and Thailand, where the company controls Total Access Communications Plc.
Thein Sein Urges Burma’s Media to Refrain From ‘Personal Attacks’ Irrawaddy 1 Oct 2013
Burma President Thein Sein used a regular address to the nation Tuesday to warn the country’s nascent private media against making “groundless” personal attacks. In his monthly speech broadcast repeatedly on state radio, Thein Sein lauded efforts to develop and unite Burma since his quasi-civilian government took power in 2011. But he also appeared to hit out at the media, which has enjoyed increasing freedom as the country opens up. “I would like to urge the media industry to keep a strict adherence to media ethics and discipline of the media, and refrain from producing groundless news and making personal attacks through the media, [at a time] when we are promoting freedom of media, which is a necessary thing for the democratic transition period,” he said. “In this reforming period, we should all unite to work together without making personal attacks and using media freedom as a tool.”
FPT Corporation: FPT support Myanmar enterprises to improve management 4 Traders 1 Oct 2013
In the morning of Sep. 27, FPT Myanmar in collaboration with SAP (the leading ERP solutions company in the world) and ACE Data Systems (the leading IT company in Myanmar) organized a workshop on "ERP - innovate the future of enterprise management" at Summit Parkview hotel, Yangon, Myanmar. The workshop was attended by the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), representatives of Vietnam Embassy in Myanmar and more than 200 large enterprises of Myanmar. Mr. Hoang Minh Chau hoped FPT would help Myanmar businesses further the IT application to their operation. ERP (Enterprise Resource Planning) is considered the leading Multi Module Software Application to help organizations and enterprises effectively manage their resources and operations. The successful ERP implementation in Vietnam, which has a lot of similarities with Myanmar, created some valuable experiences as well as lessons that Myanmar managers could learn and research to find appropriate solutions for their business.
Critics slam media legislation prohibiting ownership of dual-operation Eleven Myanmar 2 Oct 2013
Critics have slammed the broadcasting bill for prohibiting ownership of dual operating of broadcasting and print-media by one businesses entity. The legislation have been accused of giving state-owned media the upper hand over private media. Ministry of Information has drafted the bill, and critics said it gives protection against state-owned television, radio and newspapers, which are being run by the Ministry of Information. These state-owned outlets will be re-named as public service media. It prevents fair play or fair competition with private media. Moreover, the bill, which has 109 sections in 14 chapters, does not allow any private business to be involved both in broadcasting and in print media. “The bill restricts dual operating in broadcasting and print media so as to prevent monopoly in media. We desire media development as well as media liberalism. We want different media such as commercial media, State media and ethnic media to develop. But, we don’t want any powerful media to monopolize the media. Therefore, we have to include that restriction,” Mr. Tint Swe, Director General of Myanmar Radio and Television, countered the criticisms. For the news publishers being denied doing broadcasting business, Mr. Zaw Min Aye, CEO of Moe San Pan Media, said, “Myanmar Radio and Television, Myanmar Alin and The Mirror Newspaper [i.e. state-owned media enterprises] will claim themselves as public service media, and they will have a separate law [Public Service Media Bill] for themselves. OK. Then, how about the military-owned Myawaddy newspaper? Will the military be regarded as the government? Or private? If they are regarded as the private, then how would they do [with Myawaddy TV channel]? Such kind of restricting by law isn’t required in my opinion.”
JICA to provide ICT technologies for Myanmar’s Central Bank Eleven Myanmar 2 Oct 2013
Japan International Corporation Agency (JICA) will provide technologies and electronic devices for upgrading ICT system of Myanmar’s Central Bank, according to the bank’s reports. The JICA will coordinate with three Japanese electronics firms _ Fujitsu Limited, KDDI Corporation and Daieiwa Research Company_ to provide the assistance for the Central Bank. These three firms are multinational IT companies in Japan. The Japanese firms will involve not only in creation of design, providing of electronic devices and construction of internet networks but also in providing of hardware, software and networking programmes. Moreover, the electronics companies will arrange more training programmes in their respective sectors to develop human resources in Myanmar. “We are discussing the issues of sharing the bank’s data with JICA through using Cloud technology. After that, we are going to implement the project in December. For the first phase, we have signed an agreement and we are going to carry out the remaining tasks gradually,” an official from the Central Bank said. The departments such as Current Account Management, Management of Treasury Bonds and Bill as well as Credit and Collateral Management and Mechanized Clearing House will receive assistance from the JICA. The project will start in December 2013 and is to be completed in 2016.
Myanmar to issue more telecoms licences ZD Net 2 Oct 2013
I was recently privileged to speak at a recent telecoms conference in Naypyitaw co-hosted by the Myanmar Ministry of Communications and Information Technology. Over two days I heard from the speakers including the minister, deputy minister, the regulator designate, and representatives from both international and local market participants. Although the whole event was fascinating, one significant new development for international investors was the revelation that in addition to the two integrated national mobile licences to be granted to Ooredoo and Telenor, and the two integrated national mobile licences to be granted to local operators, other telecoms licences will also be available in the Myanmar telecoms market. The telecoms law permits the Ministry to make implementing regulations. I understand from the conference that the Ministry has drafted licensing regulations, which will be ready to be issued for public consultation shortly after the law has been signed. Once it has received and considered responses to the consultation, the licensing regulation will be finalized and adopted.
Qatar's Ooredoo eyes Myanmar network sharing with Telenor-exec Reuters 2 Oct 2013
Ooredoo is in talks with Norway's Telenor to share transmitter towers in Myanmar, seeking cost savings as they build networks in one of the world's least developed telecom markets, a top executive at the Qatari firm said. Myanmar awarded the country's first foreign-held mobile licences to the two companies in June after receiving interest from more than 90 companies and consortiums. At the time, Ooredoo said it planned to spend $15 billion over the 15-year licence period. "It's a green-field launch and we're going to build the network in partnership with Telenor," Jeremy Sell, Ooredoo's chief strategy officer, told a conference in Dubai on Wednesday. "This has never been done before - we're rolling out two green-field networks and anything made of steel or concrete we want to share. There are no towers that are so strategic you can't share them." Sell said this would enable Ooredoo, majority-owned by Qatar's government, to make "considerable" savings. A spokesman for Telenor did not return calls or email seeking comment.
SIM Card Revolution Still At Least Eight Months Away, Says Telenor Chief Irrawaddy 3 Oct 2013
Mobile phone operator Telenor expects to have its license to operate in Burma by the end of the year, but it will be at least another eight months until long-awaited affordable SIM cards become available, the Norwegian company’s local chief said. Following a competitive tender, Telenor was named in June as one of the first two private firms, alongside Qatar’s Ooredoo, to be awarded a license to offer mobile phone services in Burma. Years of a state domination of the telecommunications sector have meant the rates of access to mobile phones and the Internet in Burma are among the lowest in the world. Both companies are set to receive 15-year licenses and have pledged to rapidly expand the reach and affordability of telecommunications in Burma. Telenor Myanmar chief executive officer-designate Petter Furberg said Telenor would be ready to launch SIM cards, to be priced at 1,500 kyat, or about US$1.50, about eight months after the Burmese government awards the company an operating license. “We still don’t have a license in hand, but we expect it to happen within not too many months,” Furberg told The Irrawaddy in an interview in Rangoon on Wednesday.
Burma’s Internet to Receive High-Capacity Upgrade Irrawaddy 4 Oct 2013
Internet users in Burma may be able to more quickly upload and download information later this month, after the state telecommunications agency more than doubles the bandwidth of one of the country’s international fiber connections. Bandwidth is the amount of data that can be transmitted over an Internet connection. Measured over a period of time, usually in bits per second, it represents the capacity of a network to transfer information. The current low bandwidths of Burma’s international Internet connections are a large reason for the congestion and slowness that local Internet users experience, especially during the afternoon, a peak time for Internet use. According to the state-run Myanmar Posts and Telecommunications (MPT), Burma’s cross-border Internet link to China currently has a bandwidth of 2.5 gigabytes per second (Gbps); the country’s subsea link, known as SEAMEWE-3, has a bandwidth of 6.2 Gbps; and a cross-border link to Thailand has a capacity of 8.5 Gbps.
Myanmar Central Bank plans to launch mobile banking scheme Eleven Myanmar 4 Oct 2013
The Central Bank of Myanmar is planning to launch a mobile banking system in October, according to bank officials. The Central Bank has submitted proposals and it will start a final phase on banking procedures after announcing mobile banking instructions. "We have submitted the many proposals to respective departments to launch mobile banking system. We are also planning to operate this system in October and going to issue the instructions as long as use the system," said an official from Central Bank. The local private banks such as Co-operative Bank, Inwa Bank, Myawady Bank and First Myanmar Private Bank have presented their proposals to the Central Bank to operate mobile banking systems. The Central Bank has already informed some private banks that to prepare for mobile banking services. If some private banks opt to open mobile banking services, they will use mobile network operators or other solution providers.
Chief strategy officer divulges Ooredoo future plans; acknowledges Myanmar challenge TeleGeography 4 Oct 2013
Speaking at the Telecoms World Middle East conference in Dubai, Ooredoo (formerly Qtel) chief strategy officer Jeremy Sell outlined Morocco, India and South East Asia as regions where the Qatari mobile group is keen to expand its reach. Sell, who joined Qtel in 2006 as head of mergers and acquisitions, conceded that viable M&A targets are ‘limited’ in the current market, but noted that Ooredoo maintains a list of around 30 potential targets which it studies each month ‘to see if there is any movement’. Further, with reference to Ooredoo’s withdrawal from the race to acquire Maroc Telecom, Sell said: ‘who knows, it hasn’t closed yet’. When quizzed by TeleGeography on his view of Vimpelcom’s difficulties in securing a foothold in South East Asia – the Russian-backed group sold its Vietnamese and Cambodian operations to local partners after incurring heavy losses – he admitted that working with authorities from Myanmar’s former military junta will pose a unique challenge. The junta was officially dissolved in 2011 but the military retains an enormous influence. However, Sell is optimistic that Ooredoo is well-positioned to succeed with its greenfield mobile network, saying that the Myanmar government had ‘opened the door too wide’ and that ‘the prize was too big’ to let the introduction of competition fail at this stage in the process.
Myanmar shows why Mark Zuckerberg’s next five billion are a long way from joining Facebook Quartz 7 Oct 2013
The next how-many-ever billion is a popular phrase in technology at the moment, given its most visible outing by Facebook’s Mark Zuckerberg, who recently told the world he wants to bring the remaining 5 billion of the earth’s population online. Thinking in tech circles dictates that smartphones will do the trick; they’re cheaper and easier to use than computers. But a report about Myanmar’s nascent mobile phone market from research firm IDC shows that even when starting from an all but clean slate—the country of 60 million had fewer than 3 million mobile phone subscribers last year—not everyone wants to jump online. In fact, it takes years for smartphones—and therefore mobile internet—to take root even at a time of explosive growth. The chart above shows mobile phone shipments with data from a recent IDC report. According to IDC’s figures, it won’t be until 2016—a full three years after Myanmar opened up its mobile sector—that more smartphones will be sold in the country than simpler, feature phones. There are three main reasons for this: First, Myanmar remains a poor country and even the cheapest smartphones cannot compare with basic voice-and-text models that go for less than $20 new, and even less second-hand. The second is related: Network coverage remains patchy, wifi hotspots scarce (though growing) and data plans expensive. + But the third reason is perhaps most pertinent: Like any other form of communication technology, smartphones benefit from network effects and there seems little point in having one if your friends don’t have them. Who will you email, send WeChat messages to or tweet at? A 2011 study by Facebook found that “84% of all connections are between users in the same country.” In a country with less than 1% of the population online, it’s going to take quite a while for network effects to kick in.
Chunghwa joins Orange and others to target Myanmar investment TeleGeography 7 Oct 2013
Taiwanese telco Chunghwa Telecom (CHT) has joined a consortium along with France’s Orange Group, Japanese firm Marubeni and smartphone manufacturer HTC which is interested in becoming a strategic investor in Myanmar’s state-owned operator Myanmar Posts and Telecommunication (MPT). The government of Myanmar is looking for an overseas partner to help MPT compete in the country’s newly liberalised telecoms market. Telenor of Norway and Ooredoo of Qatar were awarded full-service fixed, mobile and internet concessions in July this year which will allow them to compete against MPT and the country’s only other established operator, Yatanarpon Teleport (YTP). A venture involving Orange and Marubeni was one of the twelve short-listed bidders in the July auction; although their bid was not successful, they were named as the reserve winner and will be handed a licence should Telenor or Ooredoo fail to meet their rollout obligations.
Hluttaw passes Telecoms Law, rejects two amendments Myanmar Times 7 Oct 2013
After months of discussion, the Telecommunications Law has been approved and will be enacted this week. Approved during the seventh session, the bill was returned to the Pyidaungsu Hluttaw by President U Thein Sein, who recommended five changes. MPs on October 3 accepted three of those changes, which mostly focused on definitions within the law. Representatives rejected the president’s suggestion to change section 3(j), which defines “telecommunications apparatus”, and section 64, which concerns an appeal tribunal set up under the law. While the original bill listed pieces of telecommunications equipment, MPs changed it so that the Ministry of Communications and Information Technology would be responsible for issuing an order with a list of equipment. MPs voted against reverting back to the original wording on the recommendation of the Joint Bill Committee, which said the new definition was better because it did not mean the law would have to be amended when “new [equipment] appears due to technological advances”.
Infrastructure
Only 30 % of Myanmar has access to electricity - Minister Eleven Myanmar 30 Sep 2013
Myanmar currently provides electricity to 30 percent of the population according to the Minister Electric Power, Khin Maung Soe. "Only 30 percent of the population now has access to power. To supply 50 percent, power lines will have to be constructed. The whole of Rakhine State will enjoy electricity at the end of 2014," said the minister. Power lines are being constructed in Chin State and electricity will be supplied through the national grid by the end of 2014. The power lines have been completed in Kachin State and it will also be supplied electricity, added the minister. In Mon State, power lines are being set up from Mawlamyine to Ye. In the coming year, they will be extended to Dawei. In Shan State, the whole Inn region has access to power, but many villages are still not connected. Most of Naga region is still in the dark and the government says it is planning to build three small-scale hydropower plants next year. The government has also promised to provide 70 percent of Kayah State with electricity where Lawpita Hydropower Plant is situated by the end of 2014.
CPI Falls Short on Environmental Impact Assessment of Myitsone: Experts Irrawaddy 1 Oct 2013
A Chinese corporation’s environmental impact assessment of the controversial Myitsone dam project in north Burma is not complete, international experts say. The assessment by China Power Investment Corp. (CPI) fails to clarify the social and environmental consequences of the Kachin State dam project, as well as its potential effects on fresh water species, according to experts from several countries around the world. International Rivers, a US-based NGO that works with groups in Burma and elsewhere in the region to stop destructive dam projects, has joined the Burma-based Advancing Life and Regenerating Motherland (Alarm) Group in urging CPI to conduct a wider environmental impact assessment over the course of many years.
Govt still negotiating on US$20 billion Chinese railway project Eleven Myanmar 2 Oct 2013
A US$20 billion high speed railway project that plans to connect the coastal town of Kyaukphyu, Rakhine State with Kunming in southern China is still at a proposal stage, according to government sources. There have been growing concerns from activist groups and local residents over the lack of transparency and the failure to release an environmental assessment report on the project. "We are still at the negotiation stage for the railway project at the moment. As we are still negotiating about it, nothing is definite. China has submitted the proposal but [the project] can only be continued with approval from this side," said an official from the Ministry of Rail Transportation, who requested not to be named. "We will only accept this if it offers opportunities for the country and everyone – the public, the government, and the Parliament – agreed to it," he said. According to the Ministry, China will fully fund the US$20 billion railway project, providing easy access to the Indian Ocean trade routes through an 800km high-speed railway network. China already operates the Shwe oil and natural gas pipelines that start near Kyaukphyu, and run through Mandalay, Lashio, and Muse before entering China at the border city of Ruili in Yunnan province. Thailand-based activist group Shwe Gas Movement has announced that the railway project is expected to be completed in 2015.
Yangon government releases land price assessments Thura Swiss 3 Oct 2013
The Yangon Regional Revenue Department has officially released its citywide assessment on land prices in an attempt to collect taxes on property transactions fairly and more effectively. According to officials from the Yangon Regional Revenue Department, the assessment was made because buyers often claim extremely low purchase prices for properties in order to avoid paying taxes. According to rules put out by the Internal Revenue Department, a buyer must pay a 37 percent tax on a property purchase if he cannot prove the source of the funds used to make the purchase. This tax includes a 30 percent transaction tax and 7 percent stamp duty. However, if the buyer can identify the source of money used to buy the property, taxes will be partially exempted. These tax rules were put in place to prevent money laundering. Government teams visited various neighborhoods in Yangon to determine the maximum and minimum values for each area and a final report was then sent to the Union government and the Ministry of Finance for final approval. The prices were assessed on a per square foot basis depending on location. Many industry experts feel the government assessments are way too low compared to market prices. U Win Shein, the Minister of Finance, stressed that the government’s approach is intended for the assessment of taxes only and is not intended to regulate market prices. According to local real estate companies, property transactions have cooled since the government announced their plans to assess land prices.
Thein Sein pledges cheaper electricity for Rakhine State Mizzima 4 Oct 2013
President Thein Sein has pledged to provide cheaper electricity for residents in Rakhine State, according to Than Tun, a city elder of Sittwe, the state’s capital, who met with the President on October 2. The relatively expensive price of electricity in the western state, as opposed to some other areas of Myanmar, has long been a focus point for Rakhine politicians. ‘’The President said a gas turbine which can generate 50 megawatts would be set up to distribute electricity to the whole state. And he continued by saying that an amount of electricity between 15 megawatts and 20 megawatts is efficient for the whole Rakhine State, so the extra amount of electricity would be for inland [use],’’ Than Tun explained. However, Thein Sein did not reveal a specific timetable for completion of the project and the supply of cheaper electricity, according to local residents who met with him. Regarding the president’s comment as to when we would realize the gains in lower electricity cost, “He requested the local people to wait until the situation and circumstance is convenient. And he made a comment that Rome was not built in a day,’’ Than Tun continued. Sixteen out of 17 townships in Rakhine State receive electricity through a private company at a rate of 500 kyats per unit, 14 times the cost in Yangon.
Different types of land use and their permitted terms - The Fine Print Legal & tax insight Myanmar Times 6 Oct 2013
While Myanmar’s economy is still largely dependent on agriculture, the laws of Myanmar actually do provide a broad framework for diverse use of land and varying terms for permitted land use, in each case. While there are other permitted land uses in Myanmar, this article will focus on only three types of land use and their varying terms in the context of local-foreign joint ventures as permitted under the new Foreign Investment Law, in force since November 2012.
National Affairs
Refuting the Argument That the NLD Is Weak and Without Capacity Irrawaddy 30 Sep 2013
It has become popular to criticize Aung San Suu Kyi for the weaknesses of her party, the National League for Democracy (NLD). The following arguments are used: “Uncles” have not been replaced by the younger and more dynamic leaders. The party lacks policy expertise. It lacks internal democracy. It is a one-woman show. But is the NLD really as weak as it is claimed by some diplomats, pundits, “experts” and political opponents? There are several strong reasons to claim the opposite. First of all, the NLD is the only genuinely mass party in Burma. The Union Solidarity and Development Party (USDP) has a lot of members, but the overwhelming majority of them joined the USDP for opportunistic reasons or because of fear, or a combination of both. The USDP is massive only because it is the ruling party offering privileges, patronage, advantages and a layer of security. With the prospect of electoral defeat the USDP will be massively deserted, as has happened in former state-parties during many other countries’ democratic breakthroughs. The NLD is genuinely popular and supported by a significant segment of population. The USDP is genuinely unpopular. All other parties are thin and weak. That is the underlying bottom line which many “Burma/Myanmar experts” have a tendency to overlook.
Govt says it’s working to return confiscated lands to farmers DVB 30 Sep 2013
Burma’s nominally civilian government is working to ensure that confiscated farmland across the country is returned to its original or rightful owners before the end of its term in 2015, said ministers at a press conference in Naypyidaw on Friday, 27 September. “We will work to implement this before the end of the current government term and also to prevent land disputes in the future,” said Minister for Environmental Conservation and Forestry Win Tun. “We will abide by the rules and regulations concerning land seizures and negotiate compensation with the original owners of the land. I believe there should be no dispute if farmers are compensated accordingly to the market price.” He added that the current government harbours no intentions of confiscating land owned by members of the public. “Moreover, we are even looking to allocate forest areas to those who don’t own any land,” he said. The press conference was held by committee members of the Land Utilisation Management Central Committee in Naypyidaw, which was formed by parliament on 16 September “with the aim of dealing with confiscated farmlands and other lands in the nation in a just and fair manner.”
Experts warn of water crises as population rises in Yangon Eleven Myanmar 30 Sep 2013
Environmentalists warn of possible water crises in Yangon as the city's population is expected to reach 10 million by 2020. U Ohn from the Forest Resource Environment Development and Conservation Association (FREDA) said that fresh water may become more scarce as the city's population grows. "In some countries, they lack fresh water and have to rely on boreholes. Most people dig underground wells or boreholes in Yangon. At present, there are five or six million people living in Yangon. In 2020, the estimated population in Yangon may reach 10 million. So Yangon residents may face water crisis,” said U Ohn. According to an official from Yangon City Development Committee (YCDC), the use of boreholes will be abolished by 2025, meaning that townships will have to rely more on ponds, dams or purified river water. Currently, over 400 townships in Yangon rely on water from boreholes. In order to provide water to townships west of Yangon, which need 200 million gallons of water a day, a company from Korea is exploring the feasibility of pumping water from the Kokkowa River near Hlaingtharyar. The Lagunbyin dam project will start providing water in East Dagon Myothit Townships, and also help supply water to North and South Dagon Townships which currently rely on boreholes. At present 160 million gallons of water is consumed in Yangon every day and the YCDC only supplies 65 percent of the cities 6 million population.
Myanmar says won't allow political opening to spur sectarian violence Reuters 30 Sep 2013
Myanmar will not allow those eager to incite ethnic and religious violence to exploit the Southeast Asian country's newfound openness as it struggles along the path to democracy, Foreign Minister Wunna Maung Lwin said on Monday. The comments from the country formerly known as Burma came as terrified Muslims hid in their homes in the Northwest after armed police dispersed a Buddhist mob that torched houses and surrounded a mosque - the latest outbreak of sectarian tension. "There are always people who wish to rock the boat," Lwin told the annual meeting of the U.N. General Assembly in New York. "We will not let anyone take advantage of political openness to instigate violence among different ethnic or religious communities." Clashes between majority Buddhists and Muslims in Myanmar 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.
Myanmar's parliament sessions to resume in Nay Pyi Taw Xinhua Net 1 Oct 2013
Myanmar's parliament sessions are due to resume later on Tuesday in Nay Pyi Taw with two separate sessions of the two Houses to take place first in the morning, while the session of the Union Parliament comprising both houses to be followed in the afternoon. The 8th parliament sessions came one month after the end of the 7th sessions on Aug. 31 which lasted for more than two months from June 25. More issues related to political, economic and legislative affairs as well as amendment of constitution are expected to be on the agenda for discussion. During the last 7th sessions, U Shwe Mann, speaker of the House of Representative, took over the alternate seat of Speaker of the two-House Union Parliament from U Khin Aung Myint who retained as speaker of the House of Nationalities. U Shwe Mann, who is also chairman of the ruling Union Solidarity and Development Party (USDP), was to run for the remaining two and a half years' term for the current five-year tenure of President U Thein Sein's government. Also during the last session, the parliament mainly adopted, among others, a proposal to form a 109-member Constitution Review Joint Committee, represented proportionally by parliament members of both Houses, political parties, military MPs and individuals, to make necessary amendment to the 2008 State Constitution.
Myanmar: Nationwide Cease-Fire to Be Signed Soon ABC News 1 Oct 2013
Myanmar says it expects to soon sign a nationwide cease-fire with ethnic armed groups that have been fighting for decades for greater autonomy. Foreign Minister Wunna Maung Lwin also told the U.N. General Assembly Monday that the government hopes to start a new round of political dialogue to strike a "comprehensive and lasting peace agreement." Ethnic rebellions have dogged Myanmar's modern history, but fighting has subsided — although not ended — under the reformist government that replaced a repressive junta in 2011. The minister says there is "no turning back" on path toward democracy. He is promising "zero tolerance" of ethnic hatred — a response to explosions of Buddhist-Muslim unrest in the past year. He said Myanmar would not allow anyone to exploit political openness to instigate communal violence.
Update: 1 Muslim Killed, 35 Houses Torched After Violence Erupts in Southern Arakan State Irrawaddy 1 Oct 2013
Inter-communal violence broke out between Buddhist and Muslim residents of at least three villages of Thandwe Township, southern Arakan State, on Tuesday morning. According to initial reports, more than 35 houses were burned down and a mosque was destroyed, and one elderly Muslim woman was stabbed to death. The violence comes as President Thein Sein makes his first official visit to the strife-torn region in western Burma. The groups clashed in Thapyu Kyain village, a Muslim fishing village located about 15 miles (25 km) from Thandwe town, local National League for Democracy representative Win Naing said. “I heard that 35 houses were burned down in Thapyu Kyain village,” he told The Irrawaddy on Tuesday afternoon. “The violence has now spread to another Muslim village named Pauktaw. These villages are 2 miles apart.” “Pauktaw has been burned down already,” Win Naing said, adding that he did not know how many homes were destroyed in the village.
Myanmar mining bill with parliament, may be law by March -ministry official Reuters 1 Oct 2013
Myanmar's new mining law, designed to help clear the way for foreign investment in the country's huge minerals sector, could be enacted as soon as March, an official with the country's Ministry of Mines said on Wednesday. The ministry submitted a draft of the new mining law to parliament on Oct. 1, said Aung Thuyein Win, a director at the ministry. "We hope that parliament will approve it within three months," he said on the sidelines of a conference in Singapore, adding that after approval by parliament and the president, lawmakers would have 90 days to enact the law. That means it could be law by March, updating legislation dating from 1994. The investment climate has changed rapidly since President Thein Sein took office in March 2011 after nearly half a century of military rule. Myanmar is rich in minerals including gold, copper, lead, zinc, nickel, tin, antimony and chromite.
Myanmar president visits riot-hit western state Fox News 2 Oct 2013
Myanmar's leader toured a strife-wracked western state Wednesday after anti-Muslim riots left one dead and homes razed in a resurgence of sectarian violence that has overshadowed internationally lauded political reforms. President Thein Sein arrived in Rakhine on Tuesday on his first trip to the region since a wave of religious bloodshed first erupted in June 2012, leaving dozens dead and displacing tens of thousands of people. "The main focus of the trip is the communal violence," said a presidential official who asked not to be named. In the latest clashes, a mob of hundreds of Buddhists burned houses and stabbed a 94-year-old woman to death in the Thandwe area of Rakhine on Tuesday, police said, reporting that the violence had since abated. "There was no more violence last night. The situation is calm," a police official in Rakhine state told AFP on Wednesday.
Japan’s Mitsubishi to Invest in Downtown Rangoon Development Irrawaddy 2 Oct 2013
Japan’s Mitsubishi Corporation has teamed up with Yoma Strategic Holdings to turn a section of prime Rangoon real estate into a massive shopping, residential and office development, according to a statement Tuesday. Mitsubishi Corp. and Mitsubishi Estate signed a memorandum of understanding with Yoma Strategic, Serge Pun & Associates (SPA) and First Myanmar Investment Co. (FMI) to invest in the project. Burmese businessman Serge Pun’s is chairman of a Singapore-listed conglomerate Yoma Strategic. The 10-acre project will be built in the area around downtown Rangoon’s colonial-era railway office, adjacent to the Bogyoke Aung San Market and Traders hotel, on which the FMI Center and Grand Mee Ya Hta residences currently sit. The project—which includes four glass and steel high-rise towers in a large complex connected to the red-brick colonial building—has previously been valued at US$350 million, although the size of Mitsubishi’s agreed investment has not been announced.
Muslims call on Myanmar government to provide better security The Nation 2 Oct 2013
Myanmar's main Muslim organisations called on the government Wednesday to protect them, a day after Buddhist mobs were reported to have killed up to four Muslims and burnt a mosque in the western state of Rakhine. The Muslim minority is feeling great sorrow after being attacked and we are now living in a high state of fear," said a joint statement issued by the country’s four biggest Muslim organisations. The latest round of communal violence began on Saturday in the town of Thandwe, 270 kilometres north-west of Yangon, and spread to nearby villages on Tuesday. "According to initial reports, at least four people were killed, but the figure can’t be confirmed because (the violence) covered a wide area," a Rakhine police officer said. Other reports said only one Muslim woman was killed in Tuesday’sunrest. The Muslim organisations called on the government to protect the life and property of all residents. "We demand that the government ensures the rule of law in order to protect us," the statement said. Thandwe is situated more than 100 kilometres south of Sittwe, the capital of the Rakhine state, which was the scene of bloody sectarianfighting last year that claimed at least 167 lives and left 140,000 homeless, most of them Rohingya Muslims. Earlier Buddhist mobs attacked Muslim neighbourhoods in Rakhine state Tuesday, killing at least four people just hours before a planned visit to the area by the president.
Myanmar's resources star dims after mine reform delay Chicago Tribune 3 Oct 2013
A year ago Myanmar was the hot new destination for resources investors looking to make a fast buck in a country opening up to the outside world, but a new mining law is still not passed, the hot-money crowd has filed out and reality has set in. Yet while funding options may have slimmed, opportunity is still knocking, industry participants at a conference in Singapore said this week. "A year ago everyone was going to Myanmar. You couldn't get on a flight there because every flight was booked," said Edward Rochette, chief executive of Canadian explorer East Asia Minerals Corporation , which has applied for an exploration permit in the country. "Investors were thinking: 'It's wide open, it's the Wild West, we'll just sign and be done'. Unfortunately, it's going to take time," he added. Explorers have banged up against processing times for prospecting permits stretching out several years while commodity prices have fizzled and debt and equity funding markets have dried up. The country has to fight harder to attract capital.
Human rights shelved as Burma’s Gov’t awards mining contracts Karen News 4 Oct 2013
Advocacy groups claim government’s mining decision derailing country’s democratic progress. The Molo Women Mining Watch Network (MWMWN) and the Karenni Civil Society Network (KCSN) today strongly condemned the government of Burma’s decision to grant mining contracts inside Karenni State, an ongoing zone of conflict. The two advocacy groups said the decision highlighted how Burma’s reformist government, led by ex-general Thein Sein, was more concerned over business interests than resolving ethnic conflict and human rights abuses. Since a ceasefire agreement was signed between the Karenni National Progressive Party (KNPP) and the government in March 2012, there has been a large increase in the number of government awarded mining projects in Karenni State. The number of mining projects has risen from 3 to 16 since March 2012. Specifically, tin and tungsten mines in the mining town of Mawchi have been expanded, and new antimony, coal, galena and gold mines are operating throughout Karenni state.
Myanmar moves ahead with constitution amendment Mizzima 4 Oct 2013
Myanmar's Constitution Review Joint Committee invited advice and suggestions from a wide range of stakeholders on Thursday for review on amendment of the 2008 State Constitution. According to the committee's statement, assessment and advice will be sought from the legislative, administrative and judicial pillars through the parliament and those from political parties, organizations and individuals through respective parliament representatives. The committee set the deadline for Nov. 15 for submission of such advice and assessment. The committee claimed that it has carried out three tasks laid down by the parliament, that is, to ensure the emergence of a constitution which can further guarantee the perpetuation, stability and peace and development of Myanmar in accordance with the current age and system; to bring eternal peace to all national races and ethnic people through building a national unity among them; and to carry on democratic reform. The 109-member Constitution Review Joint Committee was set up in July with the Deputy Speaker of the Union Parliament as its chairman. The committee members are represented proportionally by parliament members of both Houses, political parties, military MPs and individuals. The set-up of the committee was seen as a more to seek solution to the constitution issue in preparation for the 2015 general election.
Myanmar launches national strategic plan for women Eleven Myanmar 4 Oct 2013
Myanmar launched a strategic plan to advance women's rights in Nay Pyi Taw on October 3, with the aim of empowering women with the support of the government. The National Strategic Plan for the Advancement of Women 2013-2022 (NSPAW) was applauded by the U.S. Government on Friday for the unprecedented cooperation between civil society groups and the Myanmar government. "The United States is dedicated to ensuring that women and girls are able to participate fully in social, political, and economic life in their country…We highly commend this model of government-civil society cooperation. Continued collaboration between the government and civil society will be needed for the plan’s successful implementation," said the U.S. Embassy said a press release. NSPAW was initiated in 2010 by the Ministry of Social Welfare, Relief and Resettlement with support from the Gender Equality Network (formerly the Women's Protection Technical Working Group) and the Myanmar National Committee for Women's Affairs (MNCWA). During the three-year development period, there have been a number of consultations with relevant ministries, government departments and over 50 groups comprising of NGOs, civil society organisations, UN agencies and technical experts from the Gender Equality Network. The plan has been modified several times after feedback received during the consultations. "The main objective of the plan is that all women in Myanmar are empowered and able to fully enjoy their rights with the support of the government. Enabling systems, structures and practices are created for the advancement of women, gender equality, and the realisation of women's rights," May Sabei Phyu, Senior Coordinator of the Gender Equality Network, told Eleven Media on Friday.
Youth-centered survey will analyze adolescent issues Mizzima 4 Oct 2013
Myanmar Youth Union (MYU) chairman Ko Zwe Yan Naing announced that the organization will distribute, collect and analyze youth-centered surveys in early 2014 in an attempt to determine the roots of escalating issues within Myanmar’s younger generations. A majority of the surveys are to be conducted in Myanmar’s peaceful border regions. Ko Zwe Yan Naing said that this survey project is just one of MYU’s many recent endeavors and that the organization has sent several more project reports to the Myanmar Peace Centre and to the Office of the President. The MYU will open career training centers throughout the rest of 2013, collect the youth surveys in 2014, and work on developing further “election knowledge” among youths in2015. The MYU was formed in December of 2011 after the “Youth Force” in Yangon decided to form a concrete organization that could represent Myanmar youth nationwide.
Myanmar's ruling party warns of danger in event of constitution redrawing Global Times 5 Oct 2013
Myanmar's ruling Union Solidarity and Development Party (USDP) Saturday warned of grave danger and bad consequences if the 2008 constitution is abolished and redrawn. The country and the people will suffer the consequences arising from the move, said an announcement of the party's Constitution Amendment Committee. Myanmar's parliament set up a 109-member Constitution Review Joint Committee in July with the deputy speaker of the Union Parliament as chairman, and it is represented proportionally by parliament members of both Houses, political parties, military MPs and individuals. The committee on Tuesday invited advice and suggestions from a wide range of stakeholders for review or amendment of the 2008 State Constitution, announcing that advice will be sought from the legislative, administrative and judicial pillars through parliament and those from political parties, organizations and individuals through respective parliament representatives. The committee set the deadline for Nov. 15 for submission of such advice and assessment. Observers here noticed that there produced two different voices in the political circle involving ethnic parties on the constitution matter, with one side calling for amendment and the other side for total redrawing of the constitution. Meanwhile, the opposition National League for Democracy (NLD) also said in a announcement earlier that although the party had met with counterparts from ethnic minorities and touched on the matter, it has not yet made a decision on the move which it said depends on people's desire. The NLD vowed to cooperate with the ethnic parties to obtain public opinions for the amendment or redrawing of the constitution, the announcement said, adding that the public opinions collected will be presented to parliament.
Myanmar’s top companies under investigation for tax evasion Eleven Myanmar 5 Oct 2013
Top companies, including big construction, in Myanmar are now under official investigation for tax evasion, Finance Minister Win Shein told local reporters on October 4 in Nay Pyi Taw. The reporters put a question to the minister about the tax evasions of top local companies, including big construction firms on that day after a parliamentary session. “There are gaps in taxation received by the government. The government regulatory body on taxation is now investigating on the companies so that they will be back on the way to pay taxes correctly. The amount of taxes received is now increasing,” he answered. He also added that the body is led by Thura Thaung Lwin for the investigation. “We [the government] will take actions against those who evaded the taxes according to the law,” he answered a question raised by the reporters. “What we’re doing now is only investigating. Taking necessary actions is another part. We’re now trying to find out whether there are those [companies] evading taxes and others who should pay taxes are actually paying the taxes correctly. We are trying to push them onto the right way,” he added. There was widespread criticism of the government officials handling two big local companies such as Forever Group and Shwe Than Lwin Media over their payments of trade taxes, questioning whether they did official procedures or not according to regulatory standards. And only 35 of over 1,000 officially registered as construction companies in the country made it to the list of official tax payers. There were also public criticisms of big construction companies such as Shine, Father Land, Mother Land, Naing Group and Taw Win Family Group and other big companies like Dagon International Company being not listed as top tax payers.
Central Bank’s governor clarifies rumor of five bank accounts Eleven Myanmar 6 Oct 2013
Central Bank of Myanmar has no knowledge about the US$11 billion in foreign banks in five different accounts, the Bank's governor Kyaw Kyaw Maung explained to Mps at the Union Parliament on October 4. The governor was addressing the MPs who were examining media reports about the World Bank's refusal to cancel outstanding debts “due to money sitting in private accounts abroad”. Myanmar has US$7.6 billion in foreign reserve money in foreign banks connected with the Central Bank, the state bank or private banks. Myanmar has used the foreign exchange reserves to pay daily business and trading transactions at overseas and business dealings. The total of cash balance left in foreign bank accounts and local bank accounts are about US$7.6 billion in cash until September 10, 2013, according to the governor. “We don’t know anything about the stash. The stash and the cash balance left in foreign bank accounts and local bank accounts are not connection,” the governor said. Moreover the Minister of Finance and Revenue Win Shein said the report stated in newspapers about the refusal from the World Bank to cancel the debts due to stash kept in five foreign accounts on September 10 is reportedly revealed from Mr. Jelson Garcia who is a manager of the Asia Program for the World Bank is not true. So the Ministry arranged a press conference to clarify the truth about it. Myanmar has cleared the debts using the short term loan from an organization and a nation which is among the four ways propositions suggested by World Bank and Asia Development Bank, the Minister said.
New Industrial Park in Burma Draws Ire of Farmers, Monks Irrawaddy 7 Oct 2013
Farmers, residents and monks living around the site of the planned Myo Thar Industrial Park project in Mandalay division are complaining about encroachment on farmland, unfair compensation and the threat posed by the project to a religious site. The industrial park is planned for 10,000 acres of land which has been taken from farmers living in at least 13 surrounding villages, and includes about 60 acres of a Buddhist monastery. “Since we are going to lose almost all our land, what will we do for our living?” asked Aye Thin, a farmer from Paedaw village, Nga Zun Township, who said she has lost 70 acres of farmland, and that 20 acres more is at risk from the development.
Myanmar's mining law delay dims resources attraction South China Morning Post 7 Oct 2013
A year ago Myanmar was the hot new destination for resources investors looking to make a fast buck in a country opening up to the outside world, but a new mining law is still not passed, the hot-money crowd has filed out and reality has set in. Yet while funding options may have slimmed, opportunity is still knocking, said industry participants at a recent conference in Singapore. "A year ago everyone was going to Myanmar. You couldn't get on a flight there because every flight was booked," said Edward Rochette, the chief executive of Canadian explorer East Asia Minerals Corp, which has applied for an exploration permit in the country. "Investors were thinking: 'It's wide open, it's the Wild West, we'll just sign and be done'. Unfortunately, it's going to take time," he added. Explorers have come up against processing times for prospecting permits stretching out several years while commodity prices have fizzled and debt and equity funding markets have dried up. The country has to fight harder to attract capital. This is dampening government efforts to raise foreign capital in the mining sector and has pushed out processing times for local-foreign joint ventures to gain the right to explore.
Retail & Manufacturing
Huge rewards for Tan Chong Motors in Myanmar The Star 2 Oct 2013
CIMB Equities Research sees huge upside for Tan Chong Motor (TCM) following its first mover advantage in Myanmar and existing footprint in Indochina, based on other Indochina and Myanmar auto plays. The research house said on Wednesday TCM will invest US$50mil in the first Nissan assembly plant in Myanmar. The plant will be similar to TCM’s Vietnam plant, with annual capacity of 10,000 units and breakeven point of 5,000 units. To recap, Carlos Ghosn, the CEO of Nissan Motor, targets to capture 30% of the Myanmar market. He believes that Myanmar’s total industry sales volume (TIV) will expand to 300,000 units per year over the medium term from 120,000 currently (of which 95% consists of imported used car sales). Nissan intends to roll out the Sunny when the plant is ready in 2015. In the meantime, TCM has been granted a potentially lucrative concession to import used cars into Myanmar as an incentive for its investment and to compensate its start-up costs. “Myanmar and Indochina are significant catalysts. TCM’s position in Myanmar and Indochina will have huge consequences for its valuation once its operations there become profitable,” it said. CIMB Research pointed out TCM has effectively “locked-in” its profit for FY13, with the currency hedged at US$1:RM3.10 and 57,000 units sold.
Better loans needed: retailers Myanmar Times 6 Oct 2013
Retail shops and supermarkets are growing in popularity, but owners of traditional shops need capital to modernise, retailers said last week. “We can say that modern retail shops are becoming more common in Myanmar, even though they are still not that many in number,” said Daw Wai Thit Lwin, managing director of abc Convenience Stores, which has about 50 shops across Yangon Region. “It’s difficult to open small supermarkets because we cannot get affordable loans from the banks,” she added. It also takes time for people to change their shopping habits – buying goods from traditional street markets – but said supermarkets and minimarts have a bright future, she said. “Most of supermarkets and retail markets in Myanmar can only be found in the big cities, and there are many more traditional markets and shops.” A spokesperson for the Myanmar Retailers Association said modern supermarkets and convenience stores occupy less than 10 percent of the national retail market. U Aung Htun Thet, a presidential economic advisor, said advances in the retail field will increase with the country’s development. “It depends on the country. If Myanmar develops then modern supermarkets and convenience stores will better match the country,” he said. “However, traditional markets will never disappear.”