| National Affairs
After nationwide ceasefire signing, military, political committees formed Myanmar Times 20th Oct 2015
The so-called Joint Implementing Coordinating Meetings have already resulted in the formation of two joint committees, one for military affairs and the other for political matters. The next JICM will convene on November 15, a week after the election. The NCA calls for the creation of joint monitoring committees at the national, state and region, and local levels to take care of military-related problems. U Aung Naing Oo, a member of the Myanmar Peace Center’s work group, told a press conference last week that government and ethnic armed groups representatives to these committees had already been nominated, but independent “well-respected individuals”, trusted by both sides, still had to be identified to take part in them. “They will become the third party in the monitoring mechanism,” he said. It is thought that at the higher levels of the mechanism, these individuals will also come from civil society organisations.
Migrant workers fear impact of Mae Sot economic zone Myanmar Times 20th Oct 2015
These include an estimated half a million Myanmar migrant workers living just across the border in Thailand. The proposed SEZ has a long and troubled history, and under Thailand’s former Shinawatra administration it was shelved. However, the current military government of Thailand wants to push it through. Migrant worker Ma Khin Wai, 37, a mother of two married to a Thai man, lives in the area earmarked for the zone, informally known as Myanmar City because of the large population of migrant workers. Her neighbours include a Thai woman married to a Myanmar man. All have expressed reservations over the impact the scheme will have on their livelihood. “I am very worried,” she said. “This small piece of land is the only land we own.” Earlier this year, the Thai government seized more than 3.2 square kilometres of land in Mae Sot, including farms and homes, as one of 10 SEZs the government wants to establish around Thailand’s borders by the end of next year. The aim is to encourage private sector investment and to boost Thailand’s economic growth. Mae Sot is one of the priority areas selected.
A victorious USDP would re-elect Thein Sein Eleven 19th Oct 2015
The Union Solidarity and Development Party (USDP) would re-elect President Thein Sein as the head of state if the party won the November 8 election, its party general secretary Tin Naing Thein told the BBC. “We will elect him. He is well liked by all the people in our party. He is our chairperson and the leader of the country. All love him. If our party wins the election, we will propose him as president,” said Tin Naing Thein. “Our party will fulfil the desires and requirements of the people. People from some remote areas want stability. Some want to improve their living conditions. Under our rule, the economy is good and the country is stable. We want change in the urban areas. We are the only party which can fulfil the desires of the people. Our election campaign is based on the areas where our party has more supporters as all parties have an advantage in their strongholds,” said the general secretary. Tin Naing denied that any USDP candidates were using religion during the campaign. He claimed the party had 5 million members.
UEC makes eleventh-hour partial switch to Excel for voter lists Myanmar Times 19th Oct 2015
The election commission in Aye-yarwady has decided to at least partially switch the voter list from the software system commissioned by the International Federation for Electoral Systems to Microsoft Excel, according to Ayeyarwady election commission chair U Aung Myint. The move has received backing at the highest level. The Union Election Commission sent out a nationwide letter on September 26 emphasising that the accuracy of the voter lists should be the priority. “If there is a possible risk of error in using software, you need to consider how to avoid that risk,” said the letter signed by UEC secretary U Tin Tun and addressed to all election sub-commissions. It encouraged offices to turn to Excel if necessary to list voters but included no further details or instructions on how to correlate the two systems, or to what extent the data-base swap could be made. The changeover comes on the back of strong criticism of the voter list, including concerns over its accuracy and inclusivity. The NLD claimed that in some areas, 80 percent of the roster was awry and even asked the election to be delayed so the problems could be amended. A recent proposal by the UEC to postpone the looming polls was officially attributed to accommodating flood victims, but several political parties and commentators suggested the error-ridden list as a behind-the-scenes motive.
Interview With Arakan State’s USDP Secretary U San Shwe Burma News International 19th Oct 2015
In an interview with Narinjara News, the Union Solidarity and Development Party (USDP)’s Secretary for Arakan State’s U San Shwe said the party expects to do well in southern Arakan State and expects to win in over half of the state's 17 townships. Q: When did the USDP began their campaign in Arakan State? A: We began the campaign on September 8th, which was the first day we were allowed to start our campaign. We started the campaign in Sittwe on September 9th. Q: What kind of challenges have you encountered while campaigning? A: The USDP hasn’t faced any significant challenges. There was only a difficulty in Kyauktaw. The vinyl sign of Kyauktaw Township’s Lower House candidate was slashed with a sword. Q: How many seats or percentage do you expect to win in the Arakan State based on your current situation? A: We expect to win more than 50 percent. We have designated the southern areas as secure areas. In terms of the whole state, we have to win more than half of the 17 townships. Q: The USDP has been leading the state government for more than five years so what has the party done for Arakan State’s development? A: Our biggest accomplishment is the distribution of electricity from the national power grid. Our second accomplishment is the expansion of micro towers for telecommunication. Now, both the villages from rural areas can get signals so they have been able to use mobile phones.
Red Cross flood fund arrives Eleven 19th Oct 2015
The Myanmar Red Cross Society (MRCS) said nearly 3.5 million Swiss francs (Ks4.7 billion) has been received for rehabilitation efforts in flood-hit regions after the International Federation of the Red Cross and Red Crescent Societies (IFRC) requested an emergency fund. The MRCS will work with the IFRC to provide a year’s humanitarian assistance to Sagaing Region and Rakhine and Chin states. “The fund will be used in rehabilitation efforts. We’re now preparing to launch the efforts in Kalay and Tamu in Sagaing and Hakha in Chin,” said an official from the MRCS. The MRCS also said it received about Ks1 billion from domestic and foreign donors and will use the fund to provide humanitarian assistance to other regions such as Ayeyawady and Magway. Cyclone Komen affected about 1,000,000 people.
Is the US Giving Myanmar a Free Pass? The Diplomat 18th Oct 2015
Washington’s excitement at Myanmar’s opening to the West may have been premature, but the Obama administration appears to have deemed the country’s tentative democratization “good enough” to fit the overall U.S. strategy in Asia. That is, Washington hopes to coax potential partners in China’s orbit toward democracy, free trade, and Western values, in order to preserve the status quo balance of power in Asia. Amidst Myanmar’s democratic birthing pains, the U.S. government has sought to provide succor to the country’s reform-minded leaders, while seeking to dispel criticism, which distracts from its overall strategy. As Myanmar prepares for nationwide elections, scheduled for November 8, U.S. officials see the country as a potential democratic partner in the region, hinting at further military cooperation down the road, and hoping to expand trade, education, and cultural ties, as well. Drawing Myanmar out of China’s sphere of influence was touted in Washington as a great diplomatic boon for the U.S. pivot to Asia. Despite the quasi-civilianization of Myanmar’s government since 2011, the rollout of progressive laws liberalizing the economy and relaxing controls on civil society, free media, and the right to assembly, accompanied by upheaval in the social fabric, the country still faces familiar problems from its pre-democratic era.
Foreign currency licenses revoked for govt, private businesses DVB 18th Oct 2015
The Myanmar Central Bank has announced it will revoke on 19 October licenses allowing private and government businesses from accepting foreign currency, according to officials at the bank. As trading in foreign currency has increased in Burma, demand for the local kyat has fallen, causing instability in the financial sector, the 13 October statement said. The bank has recommended that transactions be carried out in kyat, and encouraged more people to use online payment systems and debit and credit cards to limit cash holdings on premises. The licenses to trade in foreign currency were originally granted to hotel and travel businesses, duty free stores, and airline and communication companies. The licensees have until 30 November to return the authourisation, the statement added.
Challenges Threaten Myanmar's Historic Election The Diplomat 16th Oct 2015
With less than a month until Myanmar’s general election, a growing number of issues have raised concern regarding the current government’s sincerity in ensuring a credible process that is free, fair, and transparent –quite apart from the question of whether the election itself will be held when it is scheduled. Views on Myanmar’s electoral process are split: some civil society groups and media outlets have predicted that the ruling party may employ questionable tactics to win, while others believe that the country has progressed too far to backtrack and wants to preserve its positive image. Indeed, this election and the ensuing formation of government will serve as a benchmark for Myanmar’s democratic transition. While the ultimate outcome is difficult to predict, several election-related issues can serve as benchmarks to assess the overall conduct of the political process and ultimate acceptance of the election by the international community, including the exclusion of religious minorities, voter list errors, unclear roles and miscommunication between national and local election commissions, and electioneering.
Rohingya: Breaking the Deadlock The Diplomat 16th Oct 2015
The heart-breaking misfortunes of the minority Muslim community in the Rakhine State of Myanmar, known generally as Rohingya, show little sign of improvement. As most Rohingya are no longer regarded as nationals of the country where many have lived for generations, they have almost all been debarred from standing as candidates and even from voting in the country’s general elections due on November 8. It was not always like this. At independence in 1948, subject to certain basic qualifications, all Muslims permanently resident in Burma held Burmese citizenship. Most had been issued with identity cards confirming this. But the extent of illegal post-independence migration from Bengal into Arakan, as Rakhine State was then called, induced the Burmese authorities to introduce tighter controls. After the passage of the 1982 Citizenship Act, citizens everywhere were required to surrender their old IDs and exchange them for new documents. The process of exchange was completed without trouble in almost every region of Burma, except among the Muslim population of Rakhine State. After waiting patiently for a few years, they were eventually issued with supposedly temporary “White Cards” and led to believe that their cases would be processed soon. But 25 years have passed and no action has been taken. Their lives have stagnated and been subject to considerable repression and discrimination. “White Cards” were declared invalid earlier this year. It is not known when the process of “citizenship verification” instituted by the present government will start in earnest.
Youth-designed election app bridges communication gap DVB 15th Oct 2015
Posters of candidates have been put up on lamp posts, vans calling for support flanked by supporters occasionally make rounds in neighbourhoods and the National League for Democracy (NLD) souvenir shop is doing brisk business. For the 33.5 million Burmese voters who head to the polls on 8 November — many of whom will be first-time voters, choosing from more than 6,000 candidates, is not an easy task. To help voters, a local software developer have created a smart phone app that provides people with everything they need to know about parties, candidates and even the process of voting. The MVoter 2015, created by Team Pop Stack, a group of five students from a computer science institute, won an election app contest sponsored by a Rangoon-based technology organisation that encourages social innovation and clinched the opportunity to launch their creation. Organisers were quoted by local media as saying the app which formally debuted on 4 October was chosen for it’s “simplicity and easy user interface”.
Excitement and nerves ahead of NLD leader’s Rakhine trip Myanmar Times 15th Oct 2015
Hardline Buddhist nationalist monks and local leaders of the powerful Arakan National Party may not like it, but Daw Aung San Suu Kyi and her religious and ethnically mixed NLD supporters with their “Time For Change” song have been whipping up a storm of enthusiasm even before she arrives in the trouble-hit state tomorrow. Rakhine has been a hotbed of religious conflict in recent years, but the crowd of several hundred people who gathered in central Thandwe on October 13, three days before the Nobel-winning politician was due to arrive in southern Rakhine, was a broad mix of Buddhist and Muslim supporters. As Mother’s Musicians – a travelling band of performers from Yangon who are touring the south of the state prior to her arrival, drawing crowds to their mobile stage – reached the chorus of the NLD’s rousing election anthem, the audience was literally jumping with joy.
Post-ceasefire manoeuvring begins Myanmar Times 15th Oct 2015
As hundreds of dignitaries gather in Nay Pyi Taw today to attend the signing of a “nationwide” ceasefire agreement between the government and a minority of ethnic armed groups, those forces both inside and outside the pact are already positioning themselves for the next steps in the peace process. The 12-page ceasefire text took nearly two years of negotiations to conclude, but many of its military-related provisions remain vague or still to be defined, even though the ultimate goal is the commencement of political dialogue within 90 days. International observers of the twists and turns during the talks note it is still to be decided who will monitor the ceasefire and how. Chapter 3 on “ceasefire related matters” provides for a meeting within 14 days of representatives of the military and the eight ethnic armies to “define the exact timeframes governing ceasefire related matters and their implementation”. A joint ceasefire monitoring committee is also to be formed.
Long-Sought Ceasefire Signed in Naypyidaw The Irrawaddy 15th Oct 2015
A long-awaited “nationwide” ceasefire agreement between the government and eight of Burma’s armed rebel groups was signed here on Thursday, with signatories hopeful that the pact will go some way toward ending decades of civil war in the country. The event marked the culmination of more than two years of negotiations between the government and more than a dozen ethnic armed groups, with President Thein Sein, Burma Army commander-in-chief Snr-Gen Min Aung Hlaing, parliamentary leaders and the eight non-state armed groups all signing onto the accord. Six international and 20 domestic witnesses were also on hand for a ceremony attended by about 1,000 people at the Myanmar Convention Center in the capital Naypyidaw. The signing was welcomed by both international and domestic audiences, despite it falling short of including the 15 armed groups that the government had originally hoped would ink the pact. “The ceasefire is the beginning of the peace process, and we have to work forward to realize the peace,” said Thein Sein in an opening speech before the signing ceremony.
Signing of the Nationwide Ceasefire Agreement in Burma U.S. Department of State 15th Oct 2015
The United States commends all sides for their ongoing efforts to bring an end to the longest-running civil conflict in the world. The signing of the text of the Nationwide Ceasefire Agreement (NCA) by the government and eight ethnic armed groups is a critical first step in a long process of building a sustainable and just peace in Burma. We recognize that some groups were not able to sign today, and we understand and respect their concerns.. We welcome their commitment to continue discussions within their communities and with the government about the necessary conditions for signing at a future date, and we urge the government to engage constructively in a dialogue with these groups to pursue a more inclusive peace. We call on all NCA signatories to adhere to the spirit and letter of the agreement they have signed today. Military action undertaken by or against any signatory or non-signatory to this agreement undermines the trust-building necessary for lasting peace, stability, and security for all.
Top Obama Adviser to Make Pre-Election Burma Visit The Irrawaddy 15th Oct 2015
Ahead of Burma’s crucial Nov. 8 general election, the White House on Wednesday said US President Barack Obama would send a top advisor to the Southeast Asian nation. Ben Rhodes, the US deputy national security advisor, during a visit to Burma next week will “discuss preparations for, and US expectations of, the upcoming November 8 elections,” said Ned Price, a spokesman for the White House’s National Security Council. Rhodes is considered a top confidant of the US president within his national security apparatus. In Burma from Oct. 18-20, Rhodes will visit both Rangoon and Naypyidaw, where he will meet with senior government officials, civil society representatives, and ethnic and religious leaders. “He will affirm US support for reforms that respect rights and advance opportunities for all of the country’s people,” Price said.
Myanmar and 8 Ethnic Groups Sign Cease-Fire, but Doubts Remain The New York Times 15th Oct 2015
Myanmar’s government signed a cease-fire agreement with eight armed ethnic groups on Thursday, in what the country’s leaders described as a major step toward peace in the vast borderland regions that have been restive since the earliest days of the country’s independence. But the deal, signed in the capital, Naypyidaw, leaves many questions unanswered, including how the balance of power between the central government and the ethnic regions will be determined. It does not require the ethnic groups to disarm. Perhaps most significant, the deal principally covers ethnic groups along the border with Thailand, but not the long stretch of territory bordering China. The ethnic groups with the two largest militias and tens of thousands of soldiers — the Kachin and the Wa — did not sign the agreement. Fighting in the Kachin region occurred as recently as Wednesday, an officer with the Kachin armed forces said.
China slowdown to affect Myanmar trade Myanmar Times 15th Oct 2015
China is a major trading partner for Myanmar – bilateral trade with the world’s second-largest economy accounts for over 50 percent of total trade, according to Ministry of Commerce data. Changyong Rhee, director of the Asia and Pacific Department at the International Monetary Fund (IMF), said growth across ASEAN will moderate in 2015 to 4.6pc, rising slightly to 5.0pc in 2016. Low commodity prices have hit regional exporters such as Indonesia, Malaysia and Myanmar, he said. The World Bank last week cut its fiscal 2016 growth forecast for Myanmar from 8.2pc to 6.5pc. Regional export-driven economies will be affected by the expectation of tightening global financial market conditions, noted Mr Rhee in an Asia-Pacific press briefing last week at the IMF and World Bank annual meetings in Lima, Peru.
China courts hardline Buddhist party ahead of Myanmar poll Reuters 15th Oct 2015
A powerful ethnic nationalist politician from one of Myanmar's poorest and most volatile regions said Chinese officials made him an irresistible offer during a recent visit to the country: Ask for anything, and we'll give it to you. Beijing's courting of Aye Maung, chairman of the Arakan National Party (ANP), underscores how China is taking steps to protect its most strategic investments in Myanmar - twin oil and gas pipelines and a deep sea port - ahead of an unpredictable election in the Southeast Asian nation next month. Such willingness to engage with opposition parties to secure its investments overseas represents a major shift in China's non-interventionist foreign policy. "We want China, or even America, or Singapore, if the Indian government invites me, we welcome it," Aye Maung told Reuters. "We need so many investments for the development of our area." The ANP, an organization of ethnic Rakhine Buddhists that is riding a tide of anti-Muslim sentiment, is poised to make a near-clean sweep of Rakhine state in Myanmar's first free and fair election in 25 years. There is speculation that Aye Maung could win the powerful post of chief minister of the state.
NLD leadership ambitions trigger debate Myanmar Times 15th Oct 2015
In an interview broadcast by the India Today television channel on October 7, the 70-year-old leader of the National League for Democracy said, “If the NLD wins the elections and we form a government, I’m going to be the leader of that government whether or not I’m the president.” “Why not? Should you have to be president to lead a country?” she added. The 2008 constitution drawn up by the military junta before it handed some powers to a quasi-civilian government in 2010 effectively bars the NLD leader from the presidency because her children are foreign nationals. The president is selected by parliament and forms a government, but with some important exceptions. The office of President U Thein Sein, as well as the military, chose not to react to her comments, but politicians, commentators and her own party waded in.
Myanmar Times: Yangon needs 75,000 new apartments each year - Zay Yar Lin topix 14th Oct 2015
Yangon will need around 75,000 new apartments to be built each year to accommodate the city's growing population, but contractors are struggling to come anywhere close to this target. More than 330,000 people migrate to Yangon each year from elsewhere in the country, but formidable challenges remain to building enough accommodation to keep up with the pace of urbanisation, U Kyaw Kyaw Soe, associate secretary from The Myanmar Construction Entrepreneurs Association told The Myanmar Times.
Military monopoly on extractive industries must end, says MATA Myanmar Times 14th Oct 2015
The country’s natural resources – including jade, precious stones and metals – have for too long been monopolised by military-owned businesses and their favoured private sector partners, said the civil society group in a statement on October 12. While businesspeople close to top military officials have benefited from the situation for decades, they are among the few, said MATA. The lopsided arrangement is the main root of poverty, injustice and conflict in Myanmar, and has caused harm to the security of human life, the group said. To highlight the importance of federalism, genuine peace and good resources management, MATA held a three-day meeting in Ahlone township from October 10 to October 12. The outcomes of the meeting will be forwarded to relevant ministries and civil society groups.
Myanmar to Open Yangon Stock Exchange in December Wall Street Journal 14th Oct 2015
The Yangon Stock Exchange will begin trading in early December, according to Myanmar’s deputy finance minister, opening to foreign investors one of the world’s last untapped so-called frontier markets. “We expect to launch in the first or second week of December,” said the minister, Maung Maung Thein, in an interview with The Wall Street Journal on Tuesday. The stock exchange was originally expected to open this month, but that was postponed until after national elections set for Nov. 8. Despite the political uncertainty, the deputy finance minister said he is confident the launch of the stock exchange won’t be derailed. “Whoever wins will not demolish the free-market economy that we’re practicing now; whoever wins will not destroy the democratic institutions,” he said. Myanmar has been slowly moving from a centrally planned to a market economy since the former military junta stepped down in 2010.
Myanmar’s Buddhist Monks Flex Muscle Ahead of Election Wall Street Journal 14th Oct 2015
Buddhism is normally associated with meditation and withdrawing from the material world. But some monks here are playing a more temporal role, pressing a hard-line nationalist agenda ahead of next month’s elections that threatens the country’s nascent shift to democracy after decades of military rule. Ashin Wirathu, the 47-year-old abbot of the Ma Soe Yein monastery in Mandalay, is among the most influential. His head shaved smooth, he frequently tugs a pair of battered reading glasses from the folds of his orange robes to check his buzzing cellphone or read notes passed to him by bowing aides. He is quick to smile and chats companionably with visitors. He also has a long track record of advocating a hard-line, Buddhism-infused nationalism that mines a deep seam of anti-Muslim sentiment in Myanmar, much of it directed against ethnic Rohingya. Mr. Wirathu helped create the Association for the Protection of Race and Religion, which this year persuaded parliament to enact laws restricting conversions and interfaith marriages—measures the group says are designed to stop the spread of Islam in a country that is about 90% Buddhist. The group, known by its local acronym Ma Ba Tha, now focuses on providing legal help to Buddhists caught up in legal disputes with followers of other faiths and providing education and welfare services.
150 EU observers to monitor Myanmar elections Eleven 13th Oct 2015
The European Union Election Observation Mission has deployed 30 observers to all parts of Myanmar on to observe the November 8 general election. A total of 150 observers from 28 EU member states will watch the election across the country, said to Election Observation Mission deputy chief observer Mark Stevens at a press conference at the Inya Lake Hotel in Yangon on October 11. “The observers will be following the work of the election commissions to see if they’re prepared for the election, the training of the election polling officials, then they’ll be following the election campaign, to meet with political parties to see how their campaign is going," Stevens said. "They’ll be following the messages of the campaign; they’ll be following if the political parties have freedom of assembly, freedom of movement, freedom of expression, elements such as this." "We’re building a picture of the entire election in the pre-election phase. We’ll then be following the voting and the counting and after the election, we’re following the results and the process and the reaction to the election," he added. Before embarking on their mission, the team members received an in-depth briefing on the political environment, as well as on Myanmar’s electoral system, in Yangon.
Beijing denies peace talks report mizzima 13th Oct 2015
China on Sunday denied a Reuters' report accusing the country of derailing a nationwide cease-fire deal in Myanmar's peace talks with ethnic rebels last week, ecns.cn reported on 12 October. According to Thursday's report, Min Zaw Oo, a senior official at the Myanmar Peace Centre, which coordinates talks between armed ethnic groups and the Government, told Reuters that China's special envoy pressed two key rebel groups not to sign the peace accord. The report said that after China intervened, only eight of the 15 groups that were invited by the government committed to the agreement. Some of the other groups are headed by ethnic Chinese commanders, and had received funding and other forms of support from China in the past. However, the Chinese embassy in Myanmar told the Global Times Sunday that Min Zaw Oo denies having made the statement, saying that China has been playing a positive role in Myanmar's peace talks.
Myanmar proposes delaying Nov. 8 general election due to landslides, flooding Fox News 13th Oct 2015
Myanmar's election commission has proposed delaying the Nov. 8 general election either nationwide or in some areas hit by landslides and flooding. Union Election Commission Chairman Tin Aye told reporters, "It might be delayed." He made the comment after meeting with different political parties to propose the postponement. The opposition National League for Democracy said it is against it. Tin Aye said the commission would release a statement in about two days with a possible new election date. He didn't say whether the polls might be delayed nationwide or only in areas affected by landslides and flooding in western and northwestern Myanmar.
Candidates, Voters Slam Election Day Proposal The Irrawaddy 13th Oct 2015
Political parties, candidates and voters have slammed a proposal by the Union Election Commission (UEC) to postpone the Nov. 8 general elections. Tin Aye, the UEC chair, held a meeting in Naypyidaw with seven political parties on Tuesday, asking them to consider whether the election should be delayed as a result of the widespread flooding that ravaged the country in August. Section 10(f) of the Union Election Commission law gives the body the power to postpone and cancel elections in constituencies affected by natural disasters. No firm timetable has been offered for a decision on the postponement, with Tin Aye saying the commission would announce a decision “soon”. When news broke out, criticism from political parties, candidates, activists and voters was immediate and fierce. “I can’t accept it at all,” said Mya Aye, a senior member of the 88 Generation Peace and Open Society, questioning why the election commission would wait months to consider a postponement in response to the floods.
Myanmar to hold landmark vote as planned on November 8: state TV Reuters 13th Oct 2015
Myanmar's general election will go ahead as scheduled on Nov. 8, according to an announcement on state-run television on Tuesday night. Earlier, the country's main political parties and election commission had discussed postponing the ballot less than a month before it was due be held, owing to disruptions to preparations caused by widespread flooding. "After taking into consideration the discussions of the Central Mediation Committee about the possible consequences of postponing the general election, the Union Election Commission decided not to postpone the general election but to hold it on November 8 as scheduled originally," said the announcement read out on state-run MRTV.
Real estate enters election shutdown Myanmar Times 13th Oct 2015
While sales have continued to slow since the start of the year, there has been no buying and selling whatsoever over the past week, because the November 8 election is drawing near, said agents. “The property market is currently silent, by which I mean 100 percent. Everywhere, every type of market, big or small, deal volumes are way down,” said U Khin Maung Aye of Shwe Kan Myae real estate agency. “Property dealers have almost stopped trading, which makes a big impact on the market. Though occasionally people are still selling their properties because they need the money,” he said. He added that most investors are now waiting for clarity on the new government and its policies. “The election is very close now – everything can change after that,” he said. However, other factors beside the election have led to a shortage of deals, said U Thein Hla Nyo, vice chair of the Myanmar Real Estate Services Association (MRESA).
Two ways of talking about the rule of law in Myanmar East Asia Forum 13th Oct 2015
Since 2012 many things have changed in Myanmar, or Burma. The more noticeable changes have involved the government removing repressive measures imposed on a recalcitrant public: print media censorship; prohibitions on trade unions, political parties or human rights groups; roadblocks on the approaches to the lakeside house of democracy doyen Aung San Suu Kyi in Yangon. Nowadays, that avenue is clogged with new vehicles imported from Japan and China. Nearby, condominiums spring up with the backing of investors from Hong Kong and Singapore. One sits on a road named after Sayar San, the leader of a peasant uprising against burdensome taxation and capitalist usury of the late colonial period. It advertises its garish luxury as the Royal Sayarsan without a hint of the irony, even as protestors gather almost daily on the city’s streets in response to contemporary forms of impoverishment. Under these circumstances, it is hardly surprising to find that many people have been voicing grievances in the lexicon of the rule of law.
Little hope for change as IDPs mull elections Myanmar Times 13th Oct 2015
Even those willing and able to vote see little hope of change to their situation. All they want to do is to go home. Any hope that an end of conflict might improve matters was dashed when the Kachin Independence Army (KIA) announced its refusal to join the nationwide ceasefire accord to be signed in Nay Pyi Taw on October 15. Only eight ethnic armed groups will be signing the accord, leaving about a dozen that refuse to do so or have been shut out by the government. The KIA’s decision affects thousands of internally displaced persons now living in Ja Mai Kaung Baptist refugee camp in Myitkyina. “No one wants to stay here any longer. We followed the news of the peace talks in the hope that we could go back home. That hope has been lost. But there’s still the election. If it brings change, maybe then we can go home,” U Naw Taung, head of Ja Mai Kaung camp, told a visiting reporter from The Myanmar Times on October 7. One of the biggest IDP camps in Kachin State, Ja Mai Kaung received a visit from film star Angelina Jolie Pitt, a UNHCR special envoy, in July.
Protection Law Mulled The Nation 12th Oct 2015
The Commerce Ministry mulled a law to protect local entrepreneurs from negative impacts of trade liberalisation. Maung Aung, an advisor to the commerce minister, said the Asean Economic Community would lead to an influx of imports to Myanmar. This would hurt the local economy, as imports have already outstripped exports. A public hearing on the planned law would be soon hosted. The security blanket law would be enforced for eight years. Wage fiasco Applied Systems Development (ASD) Corp was sued for an involuntary redundancy of a security guard who asked for the minimum daily wage of Ks3,600 (US$2.8). Khin Zaw, earning Ks80,000 a month, was forced to resign on October 7. The Myanmar Trade Unions Federation filed the lawsuit on his behalf. More than 3,000 workers from the Opal garment factory in Yangon staged 3-day protest over unfair overtime pay. They were paid for only 95 hours, instead of 120 hours a month. The employer later agreed to pay the wage in full.
Economic growth to pick up again post-election: IMF Myanmar Times 12th Oct 2015
Hoe Ee Khor, deputy director for Asia and Pacific at the IMF, said the involvement of the National League for Democracy (NLD) in setting regulations would likely lead to major policy changes. “I think Myanmar’s economy will recover next year in the post-election period,” he said on the sidelines of an Asia Pacific press briefing on October 9 in Lima, Peru. The World Bank last week cut Myanmar’s economic growth forecast by almost 2 percent, to 6.5pc for this fiscal year, citing nationwide flooding and a slowdown of investments linked to next month’s election and the ensuing political transition. Just four months ago, the World Bank had forecast 8.2pc growth. The IMF’s most recent forecast, published last month but based on data collected in June, is a more optimistic 8.5pc. “We hope after the election, assuming everything goes well, there will be a lot more investment into Myanmar, which will grow the economy,” said Mr Khor, adding he hopes to see a transition to a more efficient and market-based economy. Inflation is likely to rise to 13pc year-end, according to IMF forecasts, and foreign currency reserves will fall to around 2.5 months of imports, with the fiscal deficit widening to almost 5pc and the current account deficit to 9pc of GDP.
Suu Kyi warns of orchestrated election-day riots Jakarta Post 12th Oct 2015
Aung San Suu Kyi warned a campaign rally about the possibility of riots orchestrated by certain people on the Election Day. She wanted people to remain alert since a peaceful election would be of great importance for Burmese people to establish a national reconciliation. “Elections are essential in all democratic systems. You understand that the election is about choosing people capable of leading a new government,” said Suu Kyi, emphasizing the importance of the election. According to Suu Kyi, the election would change the system of government and eliminate a system where leaders sought opportunities but neglected responsibility. In this case, the support of the people would be necessary. She said the NLD was established for national reconciliation. When they became the government, their level of consideration would reflect their reputation. The system would need to be changed. However, she reminded the people not to be worry that NLD would become a government.
Myanmar’s Cease-Fire Deal Comes Up Short The Diplomat 11th Oct 2015
This past weekend, the Myanmar government announced that it will sign a permanent cease-fire deal with seven or eight of the ethnic armed insurgencies in the country. This will be a permanent peace deal, not a temporary cease-fire like some of those arranged between the insurgencies and the government in the past. As such, it could provide a measure of stability before the upcoming national elections, and it includes some of the longest-fighting insurgent groups, like the Karen National Union. (Some version of the Karen militia has been battling the central government almost since Myanmar gained independence more than six decades ago.) The deal will potentially end decades of war in some areas of the country, and allow for development and investment in those areas. The groups that signed onto the permanent peace deal were not a surprise—they had already signed earlier agreements with the government that were frameworks for permanent deals. Government ministers and peace negotiators are cautiously optimistic that the deal will allow for people in some ethnic minority dominated areas to vote more easily, making the November elections more representative of Myanmar’s entire population.
Has Burma’s ‘Social Spending’ Surpassed Military Expenditure? The Irrawaddy 10th Oct 2015
With the country going to the polls in less than a month, it seems an opportune time to assess the progress that President Thein Sein’s nominally civilian government has made in reversing one of the more damaging longstanding policies of Burma’s rulers. Successive military leaders focused large amounts of the national budget toward the armed forces, at the expense of education and health spending. When Thein Sein took the reins in early 2011, social spending was among the lowest in the world, even as government coffers were already filling with new revenue from offshore gas fields. The results: Foreign investors regularly complain that education levels among the workforce are a major obstacle to modernizing the economy, and those who can afford it—especially the families of government officials—still fly to foreign cities for health care. Education spending was just 0.6 percent of gross domestic product in 2012, and health spending was just 0.2 percent, according to the Asian Development Bank. The true scale of military expenditure, officially estimated somewhere around 4 percent of GDP, is hard to know, given the opacity of departmental spending and the military’s numerous companies that control large segments of the economy.
Could Aung San Suu Kyi Be Myanmar’s Next House Speaker? The Diplomat 9th Oct 2015
In recent months, it has proven extremely difficult to address the issue with her. Even her close entourage continues to politely sweep the question under the rug. Aung San Suu Kyi has made no secret of her presidential ambitions. However, in June, the first attempt by her party – the National League for Democracy (NLD) – to amend the constitutional provision that barred her from the presidency, failed. Since then, discussions have quietly emerged about the possibility of the iconic opposition leader jockeying for the House speakership after legislative polls are held this November. Myanmar’s 2008 Constitution created a bicameral parliament comprised of a 440-member lower house (Pyithu Hluttaw) and a 224-member upper house (Amyotha Hluttaw). Both chambers are presided over by a speaker chosen by their respective elected and military-appointed members. Nothing in the constitution prevents a legislator from being elected speaker. At the top of the legislative branch, the presidency of the joint Union legislature (or Pyidaungsu Hluttaw) rotates between the two speakers: the speaker of Amyotha Hluttaw (or House of Nationalities) presides over the first half of the 5-year legislature, while the speaker of Pyithu Hluttaw (or House of Representatives) oversees the second half. Both speakers enjoy a wide range of policy prerogatives. The constitution allows them to develop strong policymaking autonomy from the executive branch. The Union president – elected by a presidential college combining all elected and appointed legislators – cannot dissolve the parliament. Yet the latter can supervise procedures of impeachment of not only the head of state, but also cabinet ministers and even Supreme Court judges. After fourteen days, bills approved in parliament but not signed by the president automatically become laws. A speaker from a party openly opposed to the governmental majority can therefore use the legislative branch he or she controls to advance new legislation that even Myanmar’s armed forces (or Tatmadaw) could not effectively oppose – unless draft bills can be linked to a constitutional matter and thus vetoed by military-appointed lawmakers. As the U.S. political system has repeatedly illustrated, risk of paralysis abounds when a rebellious legislature opts for systematic obstructionist politics.
A Muslim-Free Parliament in Myanmar Foreign Policy 9th Oct 2015
Eection season has officially kicked off in Myanmar. Candidates from more than 90 registered political parties are currently campaigning around the country to win votes in what many are expecting to be the freest election Myanmar has seen in over half a century. The vote, which is scheduled to take place on Nov. 8, marks a potential milestone for a country that spent nearly 50 years under a series of repressive military regimes. But the campaign has a dark side. Rising animosity toward Muslims, who make up between 4 and 10 percent of Myanmar’s total population, has infected campaign rhetoric and seems to be influencing the decision-making of key actors involved. For the United States and other Western governments, who are hoping a successful election will allow them to turn a final page on decades of efforts to isolate Myanmar’s military-controlled regime, these developments are proving to be an unwelcome reality check on Myanmar’s transitional progress.
Myanmar elections will ‘not loosen military’s grip on business’ mizzima 9th Oct 2015
The outcome of Myanmar’s forthcoming national elections will do nothing to reduce the military’s business control over natural resources, but the return of a USDP-led government should ensure a continuing pro-business outlook from Nay Pyi Taw, a study said. The opposition National League for Democracy (NLD) is expected to do well in the November elections, but “serious concerns remain as to whether the country’s transition from military rule is merely cosmetic,” international business risk assessors Verisk Maplecroft said. “The ruling Union Solidarity and Development Party’s (USDP) alliance with the military means that it need only win 10% of seats in both houses of parliament to threaten the NLD’s ability to hold an outright majority,” the study said.
Garment Industry Compliance Academy Holds Closing Conference Myanmar Business Today 8th Oct 2015
The SMART Myanmar 2nd Compliance Academy has drawn to a close with the European Union Ambassador Roland Kobia attending the closing conference held at Shweyizabe Garment Manufacturing Co Ltd in Shwepyithar. The SMART Myanmar project, which is part of the EU-funded SWITCH-Asia program, touts sustainable production of garments “Made in Myanmar.” Its Compliance Academy is a business school approach to social responsibility tailor-made to emerging industries where the corporate structures are weak and the emphasis on the business relevance of good working conditions and strengthening the middle management skill is highly needed. The academy aims at improving the factories’ management system and procedures to maintain good working conditions in the long term to be competitive in the European market where emphasis is on social responsibility. “The SMART Myanmar Compliance Academy meets the demand of the Myanmar factories because the academy focuses on improving management and procedures within each factory rather than just concentration on quick fixes such as placing new fire extinguishers,” Simone Lehmann, project director SMART Myanmar, who moderated the conference, said.
CPI calculates cost of Myitsone Dam Myanmar Times 8th Oct 2015
CPIYN is the majority shareholder in Upstream Ayeyarwady Confluence Basin Hydropower Company (ACHC), the dam’s developer. The calculation was made in coordination between the Chinese and Myanmar parties, according to a company official who preferred not to be named. “About US$800 million has been spent on the project,” he said. The huge hydropower dam in Kachin State was temporarily halted by President U Thein Sein in 2011, around six months after he took office, on the back of widespread local opposition. The project has been criticised for its impact on the environment and local residents, and its role in fuelling ethnic conflict, as well as a lack of transparency in the way the contract was awarded. It was set to become one of the world’s largest hydropower plants with an installed capacity of 6000 megawatts. The CPIYN official did not explain the reason for calculating the project’s expenses. However, according to the contract, Myanmar’s government is required to compensate the Chinese state-owned electricity giant if the project is permanently cancelled. Until recently CPIYN had been lobbying for the dam to be resumed, and last year hired British reputation management company Bell Pottinger to manage its public relations, though the contract ended in July this year.
RCSS Confirm Support for Ceasefire Signing The Irrawaddy 8th Oct 2015
A powerful Shan armed group confirmed it would sign a much-debated peace deal during a press conference in northern Thailand on Thursday, but called on the government to uphold the terms of the pact. The Restoration Council of Shan State (RCSS) joins seven other ethnic armed groups in support of signing the nationwide ceasefire agreement (NCA), with a signing ceremony scheduled to be held in Naypyidaw next week. “We agreed to sign the agreement on Oct. 15 with seven other ethnic groups,” head of the RCSS, Lt-Gen Yawd Serk, said at a press conference on Thursday. “But I am concerned that the government and the Tatmadaw [Burma’s Armed Forces] won’t comply with a key chapter of the NCA which is the formation of a federal union.” Yawd Serk said the armed group had opted to accede to the accord in order to join political dialogue which, according to the text, will commence within 90 days of the signing. He stressed that political dialogue was the only means of addressing ethnic conflict but called on the government to show sincerity in addressing ethnic issues.
Govt Played 'Long Game' in Dissent Crackdown Before Election: Amnesty The Irrawaddy 8th Oct 2015
A new report by Amnesty International has claimed that the Burmese government’s detention of rights activists and other prisoners of conscience has intensified as the country’s landmark general election draws near. With a month left before the Nov. 8 poll, Thursday’s report highlighted the continued use of unlawful assembly and incitement statutes to lock up a new generation of prominent civil society voices since the beginning of the year. “[Burma’s] authorities have clearly been playing a long game ahead of the elections, with repression picking up pace at least nine months before the campaigning period started in September,” Laura Haigh, Amnesty’s Burma researcher, said in a press release. “Their goal has been straightforward—take ‘undesirable’ voices off the streets way ahead of the elections and make sure they’re not heard.” In a September update, the Mae Sot-based Assistance Associated for Political Prisoners-Burma (AAPP-B) catalogued 109 political prisoners in the country, followed by a further 460 people facing trial for political activities, an increase from 33 and 136 respectively following a sweeping presidential pardon at the end of December 2013.
Voters asked to put blind faith in NLD Myanmar Times 8th Oct 2015
This is the core of the message that Daw Aung San Suu Kyi delivers in her public rallies. The statement has earned a lot of attention, as well as criticism, throughout the NLD’s election campaign. Supporters and opponents of the opposition party have held wide-ranging exchanges on the topic. Non-partisan electoral watchdogs have been taken aback by the party leader’s approach. “When we do our voter education programs, we usually tell voters to look at the candidates,” said U Thant Sin Aung, a founder of Forward Institute, an election observer organisation registered with the Union Election Commission to monitor the November poll. “Because if voters choose the wrong candidate, they might lose their chance of having their voices represented in parliament,” U Thant Sin Aung added. “And they will suffer this for five years.” Accepting her campaign message, analysts say, reflects a kind of “blind faith” among NLD supporters in the party leader, who they believe will lead them to a more democratic state and the possibility of better lives.
Thein Sein to remain president if USDP wins Eleven 8th Oct 2015
If the Union Solidarity and Development Party wins the election, its chairman, President Thein Sein, would remain head of state, said retired Lieutenant-General Khin Zaw Oo, a USDP candidate for Tanintharyi Township, during an election speech. "The person who will become president is our party chairman. Point out another party which can say who the president will be. I dare say our party chairman will become president if we win the election," said Khin Zaw Oo. He also said being on friendly terms with the military was a prerequisite for becoming president. The Pawa village monastery hosted the event with some voters saying they were enticed to attend by the offer of a free meal and cash for fuel.
Customs
Commerce ministry pushes safeguard law to tax imports Eleven 15th Oct 2015
The Ministry of Commerce is trying to enact a safeguard law to protect local entrepreneurs from the effect of increasing imports into Myanmar, said Dr Maung Aung, an advisor to the commerce minister. He spoke at a discussion on the effects of rising imports at the Union of Myanmar Federation of Chambers of Commerce and Industry in Yangon on October 3. Since 2012, Myanmar has faced consecutive budget deficits every year. A massive influx of imports is expected when the Asean Economic Community (AEC) comes into effect in the coming months. Under the AEC, Asean member countries are expected to eliminate taxes on imports. Local businesspeople are worrying about the inflow of goods from neighbouring countries into the local market. Dr Maung Aung said: “Currently, Myanmar’s import volume exceeds its export volume. Some people are blaming an increase in imports for the rising commodity prices. As a matter of fact, there is no restriction on imports. Small and medium enterprises fear that an increase in imports may harm their businesses. Some SMEs have closed. For instance, local palm oil factories cannot compete. It is alarming.”
Myanmar-India border trade pauses Eleven 15th Oct 2015
Heavy rain has created a number of transportation difficulties around the Myanmar-India border, bringing trade between the two countries to a temporary halt, according to the Border Trade Department. “The roads have been heavily damaged since October 9. This season’s main export is areca nuts. The main import is motorcycles. The Kalay-Tamu road is ruined. The trade flow will fall,” said an official at the Tamu border gate. Continuous heavy rain has flooded bridges along the road, and traits are expected to take two weeks. “Aside from trade, even commuting is difficult. We made it to Tamu by boat,” said Aung Thu Chan, a traveller. The Teetain-Kalay road reopened, but it it still treacherous.
Government considers change of car import policies Thura Swiss 8th Oct 2015
Authorities are considering new car import policies to deal with growing traffic woes in Yangon. U Myint Cho, chief of the Yangon Region Government’s car parking analysis group, reportedly said that the many cars in Yangon mean that the car import policy needs reviewing in the former capital, but not necessarily the rest of the country. Prior to 2011, there were few cars on the streets across the country due to the high car prices, but that changed after the government lowered taxes significantly. Notably, in 2011 the government allowed all holders of a National Registration Card to import vehicles. Now, Yangon’s streets are largely gridlocked, putting a large strain on the city’s infrastructure. One problematic area being looked at is related to the import of cars by private companies. Currently, companies can import up to 50 vehicles if they are used for operations, but U Myint Cho is reported as saying that many companies manipulate this system by selling their cars.
Defense & Security
Myanmar Navy Ordered Six Super Dvora Mk 3 FAC from Israel Defense Studies 15th Oct 2015
Myanmar Navy has order six Super Dvora Mk 3 FAC from Israel in early this year. Myanmar military chief Senior General Min Aung Hlaing ccompanied by Vice-President of IAI RAMATA Mr. Nitzan Shaked, they rode and examined FAC Super Dvora MK3, which is the same type of FAC Myanmar Navy has ordered. These Super Dvora Mk 3 FAC will greatly enhance the Myanmar Navy capabilities. The Super Dvora MKIII multi-mission patrol and attack boats are manufactured by the Ramta division of Israel Aerospace Industries (IAI). The first MKIII naval crafts were handed over to the Israel Navy in 2004, following a contract signed with the Israel Ministry of Defense in January 2002.
Energy
American Firm to Design SEA’s Largest Solar Plant in Magway Myanmar Business Today 19th Oct 2015
Kansas-based infrastructure development firm Black & Veatch has been appointed by Green Earth Power (Thailand) to provide design and consultancy services to build a 220-megawatts (MW) solar power plant in Myanmar. The construction of the project, billed as the largest solar power plant in Southeast Asia, is set to begin in the first quarter of 2016. In October last year, Bangkok-based Green Earth Power signed a memorandum of agreement with the Ministry of Electric Power (MOEP) to develop the plant in Minbu, Magway region. The project is on a 344-hectare site 200 kilometres west of Naypyitaw. The plant is expected to be built in four phases over 30 months with a total investment of $350 million. “Electricity is an urgent priority in Myanmar and has serious implications on economic and social progress. As solar facilities can be built rapidly, it is an excellent alternative to quickly add power to the grid and ensure meaningful impacts on quality of life,” said Ric O’Connell, International Renewable Energy Director at Black & Veatch.
Myanmar plans to have South East Asia’s largest solar power plant mizzima 14th Oct 2015
Myanmar is to host a series of flagship solar projects, following a number of contract awards in recent weeks, industry website businessgreen.com reported on 13 October. US-based engineering giant Black & Veatch announced yesterday it has been appointed by Thailand-based developer Green Earth Power to provide design and consultancy services for a 220 MW solar project in Myanmar, described as "Southeast Asia's largest solar power plant". Construction on the high profile project, which is located in Minbu in the Magway region, is now expected to start in the first quarter of next year.
Sagaing Hydroelectric Plant to See Upgrades Myanmar Business Today 13th Oct 2015
To improve the availability of electricity to the Kalay industrial zone in Sagaing region, the aging hydroelectric generators in Zee Chaung Power Plant will be substituted with new Japanese models, according to an announcement from Sagaing regional parliament. The generator currently in place was made in China and got damaged in the recent flooding. They will be substituted by new Japanese generators, said U Khin Maung Than, an official from Sagaing region. “Kalay was hit by severe flooding. There are two generators and one already broke a long time ago. Our regional prime minister instructed us to replace the generators to bring recover our electricity generation capacity. Also, the system in the hydropower plant needs restoration as it was built in 1990.” The power plant from Kalay township could generate 6.5 kilowatts at its peak, and these upgrades will nearly double that capacity.
Gov’t Appoints IFC as Advisor for Hydro Projects Myanmar Business Today 13th Oct 2015
The World Bank Group’s private lending arm International Finance Corporation (IFC) has signed an advisory services agreement with Myanmar to help improve environmental and social risk management in hydropower projects. As part of the cooperation agreement, IFC and the Myanmar will commission a country-wide strategic environmental assessment of the hydropower sector. IFC will also provide policy guidance and training on environmental flows management, benefit-sharing arrangements and stakeholder engagement, it said in a statement. “The World Bank Group wants to play a pivotal role in supporting the development of a sustainable hydropower sector, as part of its efforts to help Myanmar achieve a balanced energy mix,” said Vikram Kumar, IFC Myanmar Resident Representative. “We will incorporate international best practices while assisting the government in developing environmental and social guidelines for the hydropower sector. We will also encourage greater collaboration between the public and private sectors as well as civil society so that developers can help shape policy and contribute to improving environmental and social risk management in Myanmar’s hydropower development.”
IFC to finance $40m Myanmar-based gas turbine project mizzima 9th Oct 2015
The International Finance Corporation (IFC) is planning to invest $40 million in a 225 megawatt combined cycle gas turbine power plant at Mandalay according to the dealstreetasia website on 8 October. The investment will be in the form of debt financing for the power plant, which will be built by a consortium of companies including, the Singapore-based Sembcorp Utilities Pte Ltd and MMID Utilities Pte Ltd, according to the project details stated on theIFCthe website. The project is expected to start in the first quarter of 2016 and will take 22 months for completion. The power plant will be connected to the Myingyan Steel Mill sub-station and is planned to start its commercial operation by the first quarter of 2018, the IFC stated.
Financial Services
Permitted investments, local and foreign, on the increase Myanmar Times 16th Oct 2015
They were commenting on the announcement by the Directorate of Investment and Companies Administration (DICA) that Myanmar Investment Commission (MIC) had permitted 204 local and overseas investments in the first six months of the current financial year. MIC handed out 27 permits in September alone. The 204 permits granted so far this year represent a 20 percent increase on the same period last year. DICA is on record as saying that the election would have no impact on the granting of permits. Speaking to The Myanmar Times after a September workshop on foreign investment, DICA director general U Aung Naing Oo said, “Despite the election, the number of investors [granted permits] will not decrease. The MIC will continue to meet and investments will still be permitted. There is likely to be an increase over last year, and after the election there will be more investment.” One of the 27 investments given the green light in September concerned the proposed joint-venture construction of an industrial city on 182 acres in Bawnatkyi village, Bago Region. Although domestic and overseas investments are increasing, more than half of these businesses are in food production, plastics and apparel, according to DICA. “Investments will be coming in depending on the situation in the country. Big investors are still watching the local political situation, and corruption and the weakness of the financial sector are also important considerations,” the chair of the Association Myanmar Oil and Gas Servicing Enterprises, U Kyaw Kyaw Hlaing, told The Myanmar Times
Economists brace for seismic AEC effect Eleven 15th Oct 2015
Economists predict that when the Asean Economic Community (AEC) comes into fruition next year, the free flow of capital and the foreign currency markets will be affected. Dr Maung Aung, adviser to the Ministry of Commerce, said: “It is true that when the AEC opens after December 31, large amounts of capital flowing freely into the country will impact the dollar market here but I believe the big one – capital – will still be restricted as some things can be delayed until 2018.” Retired professor Maung Maung Soe of applied economics at Yangon Institute of Economics said: “I like the idea of dollars coming in externally which will strengthen the domestic dollar supply. I believe there will be positive impacts.” While an influx of foreign capital in US dollars excites some, others are sceptical as the domestic supply of dollars in circulation might bleed outwards. A primary reason for Myanmar’s economic downturn is seen as international trading, specifically with increasing imports. Increases of more than 40 per cent in capital, 30 per cent in industrial commodities and more than 25 per cent in general products have been reported.
Inflation projected to exceed 11% Eleven 15th Oct 2015
Inflation, which has remained stable at 5 to 6 per cent in recent years, is projected at 11 per cent for this financial year, according to the World Bank’s Myanmar Economic Monitor. Double-digit inflation could have dangerous consequences, warn economists. Average inflation was 5.7 per cent in 2013, 5.9 per cent in 2014 and 11.3 percent this year. “The IMF expects growth to be 8.3 per cent in 2015. But the main problem is the currency's instability. The Central Bank of Myanmar cannot solve the problem on its own. The exchange rate is an important indicator for economic growth. If the economy is solid, the exchange rate will be stable. This is important. But now frequent changes are occurring,” said economist Myint Thaung. The kyat is still difficult to exchange with other regional currencies. “The Thai, Malaysian and Singaporean currencies can be exchanged for the kyat in Myanmar but the kyat cannot be exchanged in Thailand because our currency is not stable,” he added. Growth for this financial year is projected at 6.5 per cent, 2 per cent below that of last year, according to a World Bank report on October 5.
New farmers bank seeks shareholders Myanmar Times 14th Oct 2015
The lender, which will be called Farmers Development Public Bank, will open before April 2016, chair U Kyaw Swar Soe told The Myanmar Times. The company held an event at Yangon Asia Plaza Hotel on October 10 to market the new bank to prospective investors. “Currently we’re accepting shareholders,” said U Kyaw Swar Soe. The company received a permit from the Directorate of Investment and Company Administration in December last year, he said. According to Central Bank regulations, anyone looking to establish a bank must have at least US$20 million in paid-up capital. U Kyaw Zay Ya, the new bank’s managing director, said he is hoping to raise $30 million. Shares are available at K10,000 each, he said. “Once we have raised enough capital, we will operate as any other commercial lender, under a licence from the Central Bank.” The first branch is likely to be in Bago or Ayeyarwady region, but the decision will ultimately be made by the shareholders, he added.
Return of dollar black market shows limits of Myanmar reforms Reuters 19th Oct 2015
Banks in Myanmar bought hundreds of millions of dollars in the black market this year, banking sources said, in a resurgence of an unregulated trade that flourished under military rule and has raised fears among foreign investors of backsliding on reforms. Lenders say they were forced to turn to unlicensed brokers for scarce dollars to keep the wheels of trade turning, as the central bank's efforts to prop up the kyat currency threatened to freeze up the nascent financial system. "We deliberately made our currency appreciate, while there was an actual depreciation happening," said a senior central bank official. "The whole informal market re-emerged, no transactions were happening through the banks any more. That's when we came to the brink of collapse." The episode underscores the fragility of reforms introduced since a semi-civilian government took power in 2011 after decades of isolation from the international financial system. Sources said the main motive for rolling back on reforms that introduced a managed kyat float in 2012 was to avoid inflation becoming an issue that could damage the government's standing ahead of a historic election on Nov. 8.
Myanmar Curbs Foreign-Exchange Use The Wall Street Journal 19th Oct 2015
Myanmar’s central bank has canceled foreign-exchange licenses issued to thousands of businesses including hotels, restaurants and supermarkets in a bid to curb the growing use of U.S. dollars in the economy as the domestic currency tumbles. The move comes three weeks before Myanmar holds crucial elections that will act as a litmus test of how normal the country has become since decades of military rule ended in 2011. The move has caused confusion among many businesses, who say the policy was enacted suddenly Monday and without sufficient clarity. Businesses including hotels, restaurants, airlines and souvenir shops have to give up their licenses, according to the Central Bank of Myanmar’s new policy, and will no longer be able to trade in U.S. dollars. The businesses have to return their licenses by the end of November. “The Central Bank aims to promote the kyat, and to…promote domestic debit cards and credit cards, payment cards and online payment systems,” said a letter from the bank to businesses that was published on its website. A growing preference for U.S. dollars by these businesses has spurred demand for the currency in favor of the kyat and is “leading to exchange rate instability,” the bank added.
Hundreds of forex licences revoked Myanmar Times 19th Oct 2015
The new policy is effective from today. Companies must return their licences to the Foreign Exchange Management Department (FEMD) by November 30, a Central Bank official told The Myanmar Times. Banks and money changers can still exchange foreign currencies, but others such as communication services, airlines, tour companies, hotels, hospitals, freight forwarders, supermarkets, duty-free and souvenir shops must give up their licences, said the official. The military-owned Union of Myanmar Economic Holdings will also have to return its licence, he said. An announcement published on the CBM website on October 16 confirmed the decision. The Central Bank official said he hopes the new policy will encourage more card payments, particularly in the tourism industry. Point-of-sale systems are gaining traction but are still not widely used. Non-banking businesses have been allowed to deal in foreign exchange since the Foreign Exchange Management Law was enacted in 2012.
Myanmar’s conglomerates hope to re-engage foreign investment Financial Times 19th Oct 2015
If you believe the official trade data, China’s import of gems, jade and other precious stones from Myanmar ballooned to $12.3bn last year, up tenfold from just $1.2bn in 2013. Yet such figures are likely to reveal an increase in transparency as much as in the trade in precious stones. For many years, this massive trade has mostly been unofficial and under the radar, with estimates of Myanmar’s gem industry at somewhere between $15bn and $20bn a year. High quality global journalism requires investment. If anything, in fact, the trade has begun to decline. In part, this is a result of the slowing Chinese economy. Increasingly, however, some of Myanmar’s biggest conglomerates, such as Max Myanmar, claim to be exiting or divesting from gem mining businesses in an effort to get themselves off a US sanctions list. Many of Myanmar’s conglomerates thrived during the country’s two decades of international isolation, cultivating close ties with the military and securing lucrative concessions in resource and trading industries. Cash from these operations was then recycled into a vast array of other businesses. Yet lucrative extractive industries have been particularly controversial due to their association with land grabbing and environmental degradation. This extends beyond mining to other industries such as timber and agribusiness. In a recent report, environmental watchdog Global Witness estimated that at least 5.3m acres of land had been awarded to agribusiness concessions in recent years, mostly without the consent of local villagers and with almost no compensation.
Myanmar: Foreign insurers offer liability insurance Asia Insurance Review 13th Oct 2015
The three foreign insurers which have operating licences in Myanmar are now allowed to offer liability insurance in Thilawa Special Economic Zone where they operate. The green light was granted by the Myanmar Insurance Business Supervision Committee, reported the Eleven Myanmar news website. Only life, fire and all-purpose vehicle insurance have been available from foreign insurers until now. Sompo, Mitsui Sumitomo Insurance and Tokio Marine and Nichido Fire Insurance have permits to offer their services in the SEZ.
Yangon stock exchange risks opening under US sanctions Myanmar Times 12th Oct 2015
Myanmar's first modern stock exchange risks falling under sanctions by the US Treasury when it eventually launches this year. The Yangon Stock Exchange is not designated specifically by the Department of Treasury’s Office of Foreign Assets Control (OFAC). However US officials have clarified that under US law it would be automatically sanctioned, as it is 51 percent owned by Myanma Economic Bank (MEB), a state entity under US sanctions. Entities owned 50pc or more by one or more blocked persons on the US Specially Designated National (SDN) List are subject to US sanctions, said a US embassy spokesperson.
Maybank Yangon to Focus on Transaction Banking, Corporate Lending and Treasury Services Myanmar Business Today 12th Oct 2015
Malayan Banking Berhad (Maybank), one of the nine foreign banks in Myanmar, said it aims to focus on transaction banking, corporate lending and treasury services in Myanmar. The Maybank Yangon branch, which has registered capital of $75 million, officially launched its Myanmar operations on October 2. Pollie Sim, Maybank’s CEO International, said that the Malaysia-based bank was in a good position to offer cross-border banking solutions by leveraging its reach. “Our focus will be on supporting wholesale and corporate clients as well as domestic banks in Myanmar with services such as deposit accounts, working capital financing, transaction banking, cash management, treasury and capital market solutions,” she said.
ANZ Banking Group Starts Myanmar Operations Myanmar Business Today 12th Oct 2015
The Australia and New Zealand Banking Group Limited (ANZ) has received the final regulatory approval from the Central Bank of Myanmar to open a branch in Myanmar, paving the way for the official opening of its Yangon branch on October 2. ANZ said it will service multinational and joint venture companies with a presence in Myanmar from the new branch, as well as international companies looking to enter Myanmar from ANZ’s network countries. ANZ CEO for International and Institutional Banking Andrew Géczy, said: “This licence approval is a final step in our plans to deepen our presence in the Greater Mekong, following the recent branch opening in Thailand. We can draw on our strengths in natural resources, infrastructure and agriculture – which match those of Myanmar – to connect global customers with the significant growth opportunities in this region.
YSX provisional licences awarded Myanmar Times 9th Oct 2015
Eight companies have been offered conditional underwriting licences for the Yangon Stock Exchange, subject to paid-up capital. The exchange, which is owned by state-owned Myanma Economic Bank, Daiwa Institute of Research and Japan Exchange Group, is due to open in December. Companies including AYA Bank, Daiwa Securities Group and United Amara Bank were offered provisional licences on October 7, multiple industry sources said yesterday.
Food & Agriculture
Minister Seeks SEARCA Assistance to Develop Agriculture Myanmar Business Today 8th Oct 2015
Minister for Agriculture and Irrigation U Myint Hlaing has requested the Southeast Asian Regional Centre for Graduate Study and Research in Agriculture (SEARCA) to assist Myanmar in developing rice scientists and farmers. In a bilateral meeting attended by 18 Myanmar SEARCA graduate scholars studying at the University of the Philippines Los Baños (UPLB), the minister said Myanmar needs to urgently address contemporary issues that affect agriculture, including climate change, land conversion and degradation, and supply chain, while developing seeds and reserves. The minister acknowledged SEARCA’s recent efforts to develop human resources in Myanmar’s agriculture sector during his visit to the International Rice Research Institute (IRRI) in the Philippines. In addition to the 18 Myanmar scholars from the Ministry of Agriculture and Irrigation (MOAI), nine other Myanmar are currently enrolled in PhD and masters programs under SEARCA scholarship. To date, SEARCA has awarded a total of 80 masters and PhD scholarships to Myanmar nationals, 53 of whom have completed their graduate programs. Currently, two Myanmar researchers are implementing research projects funded by SEARCA under its Seed Fund for Research and Training (SFRT).
Health & Life Sciences
Cholera infects almost 200 Myanmar Times 15th Oct 2015
Eh Kalu Shwe Oo, head of the KNU Department of Health and Welfare, told The Myanmar Times yesterday that the outbreak occurred in five villages in southern Kyeinsekgyi township. In the third week of September the group sent two medical teams to conduct an assessment in the area following reports of an outbreak. The assessment found 190 people had contracted cholera and 13 of them died, he said. Five teams from the KNU Department of Health and Welfare and community-based organisations have travelled to the area to conduct further assessments and treat patients. “They are going to report back to us on the situation within two weeks,” he said. The outbreak began in mid-August but went undetected for almost a month.
Myanmar wants to get rid of malaria by 2030 Business Standard 14th Oct 2015
Myanmar has set a target of getting rid of malaria by 2030, authorities said on Sunday. As the number of malaria case has gradually declined since 2011, Myanmar is likely to attain the millennium development goal of reducing the malaria-related death by half in 2015, Xinhua quoted the Yangon Region Public Health Department as saying. According to official statistics, 9 in 1,000 people in Myanmar were infected with malaria in 2007 but the number declined to 5.13 in 2013. The disease killed 0.48 in 100,000 people in 2013, down from 2.18 in 2007.
Severe malaria strain detected in Myanmar Eleven Myanmar 19th Oct 2015
Cases of a severe malaria strain called Plasmodium falciparum have been reported in Rakhine State and Sagaing Region, where there are more than 30,000 severe malaria patients, according to the Public Health Department in Yangon Region. Myanmar has more than 200,000 malaria patients every year. However, major cities like Yangon and Mandalay Regions report no malaria incidents.
Thai hospital to establish Myanmar subsidiary Myanmar Times 15th Oct 2015
Bumrungrad Hospital, Thailand's second largest healthcare provider by market value, has obtained a licence to set up a subsidiary in Myanmar, the company announced October 14. The subsidiary is 80 percent owned by Bumrungrad Health Network and 20pc by Yangon International Medical Services, it said. Last July the Ministry of Health announced that foreign investors would be permitted to team up with local partners to finance private hospitals, clinics and laboratories for the first time in decades.
Kicking the foreign drug habit Frontier Myanmar 10th Oct 2015
The first private sector drug companies are poised to begin production, easing Myanmar’s reliance on imported pharmaceuticals. Myanmar is trying to kick its foreign drug habit: In recent years the government has offered incentives to seven private distributors to try their hand at manufacturing domestically. They include local and international outfits, and their first factories are nearly ready to begin producing what will theoretically be affordable yet high-quality medication.
ICT
Telenor Myanmar Appoints New Chief Marketing Officer Myanmar Business Today 19th Oct 2015
Telenor has announced the appointment of Joslin E Myrthong as Chief Marketing Officer (CMO) its Myanmar unit. Myrthong, who is the current head of sales and distribution of Telenor Myanmar, takes over from current CMO Sharad Mehrotra, who moves to Telenor India as the company’s new Chief Executive Officer there. Both will assume their new positions on November 1, Telenor said in a statement. Taking over from Myrthong as Head of Sales and Distribution is Ye Jhan, currently Head of National Sales in Telenor Myanmar. In this role, Ye Jhan will lead Telenor’s commercial operations in Myanmar spanning more than 50,000 points of sale served by 114 distributors, and 77 branded shops. Telenor Myanmar CEO Petter Furberg said, “Our strategy in Myanmar has been built on being best at serving the mass market in Myanmar, and on being best at distribution. Joslin is a highly seasoned telecoms and marketing executive. Together with Sharad, he has been part of building our business and organisation in Myanmar from the start of our time here.
As IT Transforms Myanmar, Laws and Education Need to Emerge from Analog Age Myanmar Business Today 8th Oct 2015
“My first access to the internet was in 2008. The government banned most websites at the time, and we couldn’t get access to exile media, or even Gmail. It was difficult to use at the time, because we had no training or knowledge. We couldn’t use it effectively,” U Kyaw Khant, who works at a publishing company in Yangon, told Myanmar Business Today. The situation has gradually improved, with the end of web censorship in 2011, followed by an explosion in internet use accompanying the end of the telecom monopoly in late 2014. Still, the breakneck speed of this opening has led to new problems in the IT sector, with low computer literacy, outdated laws, and the potential for mass surveillance. A lack of literacy Access to computers and the internet has increased greatly in the past few years, but more work needs be done to standardise support for local languages and further increase availability of services. Computer literacy is rare in Myanmar. According to the 2014 census, only 3.5 percent of citizens had access to a computer, while 6.2 percent had access to the internet in some form. These figures are due to rise for years as mobile phone service spreads to new cities and more citizens come online. The country is poised to catch up fast in terms of computer use. The country has a relatively high literacy rate among developing countries. The internet is a minefield, however, and a risky click can damage a computer or smartphone and put others’ devices at risk.
As Myanmar’s mobile, internet penetration soars, social payments could be next Tech in Asia 19th Oct 2015
The Myanmar market is getting online micropayments through social media, thanks to a deal between Singaporean social payments company Fastacash and MyPay, a Myanmar-focused payments provider. Fastacash will make a strategic investment into MyPay, powering the latter’s payments system with its paying-through-your-social-networks tech. The aim is for Burmese users of MySquar, a widely used social network run by a local startup, to be able to pay through its Facebook Messenger-like feature, MyChat. MyPay announced today it’s partnering with MySquar to achieve this goal.
Ooredoo hands Nokia a five-year supply deal Telecomasia 13th Oct 2015
In Myanmar, the company secured one of the two unified telecom licenses allocated as part of the liberalization of the nation's telecom sector. Ooredoo Myanmar launched the nation's first 3G services in August last year. Working with Nokia, Ooredoo has designed and built a range of leading-edge networks that enable us to enrich our customers’ lives,” Ooredoo CEO Ahmed Al-Derbesti said. “This renewed framework agreement is significant, as it covers the delivery of all the latest technologies and support services helping us further enhance our network capacity and coverage.” Ooredoo also recently deployed Nokia Networks small cells in its home market of Qatar. The enhanced agreement could potentially lead to the rollout of small cells to other markets within the operator's footprint.
Infrastructure
Yangon-Mandalay railway upgrade to halve travel time Myanmar Times 19th Oct 2015
The first phase of the US$2 million operation, covering the 166-mile (267-kilometre) stretch from Yangon to Taungoo, is scheduled for completion next March, said Myanma Railways general manager for lower Myanmar U Htun Aung Thin. “It’s a popular route, with about 3000 passengers a day, so this is a priority,” he said. Work began in 2013. “The project is being carried out with an Official Development Assistance loan from the Japan International Cooperation Agency [JICA]. The trip now takes 14 hours at an average speed of 40 kilometres an hour. On completion, that could reach as fast as 80kph, with a regular speed of 60kph,” said U Htun Aung Thin. Track improvement has got as far as Kyan Sitthar Road station, near Toe Kyaung Kalay station, in Ywar Thar Gyi, East Dagon township. JICA is also providing technical training for railway staff. JICA technical expert Mr Komatsu said, “This is first JICA project related to railways in Myanmar. We hope the train will run up to 100kph on this line in future.”
Government unveils housing ambitions Eleven 15th Oct 2015
According to the construction minister, Soe Tint, the current fiscal year will see around 30,000 more apartments built in Yangon Region. A meeting held in Nay Pyi Taw announced that 11,160 low-cost, 6,830 medium-cost, 4,380 high-cost apartments as well as 5,160 public-rental flats and 1,830 staff apartments would be built. In order to meet the ever-rising demand for rental property in Yangon, around 1,800 rental apartments are currently under construction. “There used to be around 20,000 rental flats but around 1,800 more will be finished soon. It is just a matter of whether they will be for rent or for sale only. If we were to sell them, the public would not be able to afford them especially since the new homes are bigger. The ones to be built next will be smaller and more suitable for the rental market. The rental rates are being discussed,” said a spokesperson from the Ministry of Construction.
IFC to loan Ooredoo $150 million for infrastructure Myanmar Times 14th Oct 2015
Ooredoo and the International Finance Corporation, the investment arm of the World Bank, are closing in on a debt financing deal of up to US$150 million. The project – which has been in the works for the last few months and has involved Ooredoo’s corporate group, local management in Myanmar and the IFC – will primarily fund infrastructure development, according to Ooredoo’s new CEO, Rene Meza. The funding will mostly go toward “expansion of our existing network footprint,” he told The Myanmar Times, calling the debt financing deal “very close to a full completion”. “The IFC loan will contribute to financing the rollout of the company’s national 3G mobile network in Myanmar, licence payment and operating expenses,” according to a project description on the IFC project database.
$4.9m Repair Bill for Rail Network after Flood Damage The Irrawaddy 9th Oct 2015
Burma will need nearly US$5 million and 18 months to finish repairing extensive damage to the nation’s rail network in the wake of August’s floods disaster. State run newspapers reported on Friday that the Ministry of Rail Transport estimates a 6.3 billion kyats (US$4.9 million) repair bill for a number of rail lines operating in seven of the country’s 15 administrative divisions. Than Htay, the Naypyidaw-based deputy general manager of Myanmar Railways, told The Irrawaddy that the rail operator was prioritizing repair works on lines linking Mandalay with Kachin state capital Myitkyina, the line between Pakokku and the Sagaing township of Kale, and damaged track in Arakan State.
BD-Myanmar road link remains elusive The Financial Express 12th Oct 2015
A planned Bangladesh-Myanmar road link for continental communications remains still a distant dream as there has been no move yet to execute an official decision on rerouting it through Bandarban hill district. Competent sources said the fresh move, decided in an inter-ministerial meeting, has been shelved after the Roads and Highways Department (RHD) took step to construct Balukhali-Gundhum road recently although the Myanmar government has lost interest in this 153-kilometre (km) road through Cox's Bazar corridor.
Myanmar villages to get Japanese development agency-funded solar microgrids PV Tech 9th Oct 2015
A Japanese government development agency will fund solar microgrids at 11 villages in Myanmar, with rural infrastructure and off-grid solar company Sunlabob set to develop them. Earlier this week Sunlabob, which is headquartered in Laos, announced the projects in the Southeast Asian state, set to hold its first democratic elections since 1960 in November. Funded by Japan International Cooperation System (JICS), which assists developing countries in procuring goods and services as part of the Japanese government’s wider development programmes, the microgrids have been coordinated by the Department of Rural Development within Myanmar’s Ministry of Livestock, Fisheries and Rural Development.
Vietnam
Deputy PM welcomes Myanmar anti-corruption official VietnamPlus 15th Oct 2015
Vietnam is interested in promoting the traditional friendship and multi-dimensional connections with Myanmar, Deputy Prime Minister and Foreign Minister Pham Binh Minh has said. He hosted a reception for Chairman of the Anti-Bribery Commission of Myanmar Minister U Mya Win, who is in a working visit, in Hanoi on October 15. The Deputy PM praised the talks between the Government Inspectorate of Vietnam and the Anti-Bribery Commission of Myanmar and their signing of a memorandum of understanding on anti-corruption as providing a legal foundation for boosted cooperation between the two agencies in the coming time. He spoke highly of the two countries’ growing ties across various fields, saying there are rooms for the two countries’ cooperation and Vietnam will do its utmost to foster the traditional friendship and multi-faceted cooperation with Myanmar.
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