| Regional Affairs
Myanmar makes up 1.9% of Asean trade Eleven 3rd Dec 2015
Total Asean trade has increased by 60 per cent since 2007 thanks to the removal of tariffs while Myanmar only has 1.9 per cent of it, according to Tin Tin Htwe, the senior adviser to the Parami Energy Group. “Asean is home to some 600 million people; quite a big market. Back in 2014 when Malaysia and Singapore got 54 per cent in inter-Asean trade, Myanmar received just 1.9 per cent. When Malaysia and Singapore got 47 per cent of the trade with the countries outside Asean, Myanmar only had 0.8 per cent. Our country has encouraging potential but we do not exploit it. Asean is meant to be people-centred. Our people should be aware of Asean and the opportunities they can get from it,” she told a press conference. Thailand, Indonesia, Malaysia, Philippines, Singapore and Brunei have reduced or removed the tariffs in inter-Asean trading, and saw a staggering increase in trade flows. But Myanmar’s Asean trade was around US$10 million last year, according to the Ministry of Commerce.
Chinese envoy meets Suu Kyi Eleven 7th Dec 2015
Lui Zhenmin, special envoy for China's deputy foreign minister, yesterday met Aung San Suu Kyi, chairperson of the National League for Democracy (NLD), in Nay Pyi Taw's Parliament. Suu Kyi announced the meeting on her Facebook page. Hong Liang, Chinese ambassador, also met Suu Kyi in Nay Pyi Taw on November 18. “China is our neighbour so relations will always be more delicate compared to those wth distant countries," Suu Kyi told China's government news agency Xinhua after that meeting. Chinese had protected the former military government of Myanmar in the international community taking advantages in business opportunities than other countries.
National Affairs
U Shwe Mann still in running for senior post after transition Myanmar Times 9th Dec 2015
Thanks to his close working relations with Daw Aung San Suu Kyi and his willingness to bring constitutional reform to the parliamentary floor, U Shwe Mann will likely be given a top role by the National League for Democracy-run government, according to political analysts. Political party and government sources who wished to remain anonymous said that Thura U Shwe Mann’s comeback would be staged either as the next chair of the Union Election Commission or as the head of the Constitutional Tribunal. “As Speaker, he already has experience with legislative matters and also he has a degree in law,” said a source. “I think either of these two positions is suitable for U Shwe Mann.” Daw Aung San Suu Kyi and President U Thein Sein previously enjoyed good working relations after he convinced the opposition leader and her party to run in the 2012 by-elections. But after assuming her seat in parliament it was the third-ranking member of the former junta whom Daw Aung San Suu Kyi counted on as her ally. They often met in parliament and sometimes held press conferences together within the last three years.
Myanmar comes under renewed pressure to ratify key human rights treaties Myanmar Times 9th Dec 2015
Speaking at an event in Yangon yesterday to mark International Human Rights Day, Andrew MacGregor, a senior official from the Office of the UN Commissioner for Human Rights, singled out two key covenants on the 50th anniversary of their adoption which he urged Myanmar to enact. Members of the audience understood that the message was aimed primarily at the new government to take office next March, with expectations that National League for Democracy leader Daw Aung San Suu Kyi would be more disposed than the previous military-backed administrations to maintain past pledges to accede to key human rights treaties. “Respect for these freedoms continues to be the foundation of peace, security and development for all. Accordingly, the UN Human Rights Office calls on the government of Myanmar to ratify the two covenants as a signal of its intent to promote and protect your human rights and freedoms, and the rights and freedoms of all in Myanmar,” Mr MacGregor said.
US reconsiders Myanmar for special trade preferences Myanmar Times 8th Dec 2015
The United States’ Generalised System of Preferences (GSP), set up in 1974, strikes duties off imports that come from 122 countries and territories. Right now, Myanmar is not included, but this could change, said a US embassy spokesperson. “With the reauthorisation of GSP in June, the United States has resumed review of Myanmar’s eligibility for GSP benefits,” the spokesperson said. “The review will examine the progress that the government of Myanmar has made over the last few years on labour rights reform, including its ongoing efforts to address issues related to freedom of association and other internationally recognised worker rights.” Workers rights have been a sticking point for Myanmar and the GSP program for more than one-quarter of a century. “Burma’s GSP eligibility has been suspended since April 1989 because it had not been meeting GSP criteria related to worker rights,” wrote international trade and finance specialist Vivian C Jones in an August 2015 report for the Congressional Research Service, a non-partisan American think tank.
Rights body to train soldiers Eleven 7th Dec 2015
The Myanmar National Human Rights Commission is discussing holding training courses for service personnel in human rights, according to member Zaw Win. “We aim to teach young service personnel about human rights and we are now discussing courses on human rights with different ranks at the three military command headquarters. The military agreed to it. The army wants to participate in protection against human rights discrimination in cooperation with us,” said Zaw Win. The commission is running courses for government ministries, including the Ministry of Defence.
Former dictator said to accept Daw Suu as ‘future leader’ Myanmar Times 7th Dec 2015
According to the former dictator’s grandson, Ko Nay Shwe Thway Aung, the two met at her request for two hours at the ex-general’s home in Nay Pyi Taw on the evening of December 4. National League for Democracy officials confirmed the meeting took place. “Everyone has to accept the truth that Daw Aung San Suu Kyi will be the future leader of Myanmar after winning the elections,” former Senior General U Than Shwe was quoted as saying in his grandson’s Facebook post on December 5. “I will support her earnestly as much as I can if she really works for the development of the country,” said the 82-year-old ex-general who ruled from 1992 until handing over power to a military-backed government in 2011.
NLD grapples with competition and policy Myanmar Times 7th Dec 2015
In one sense this should be straightforward. The dominant NLD performance means that they represent interests from across the social and political spectrum. It is a broad church. The unifying centre of the NLD is also obvious: Daw Aung San Suu Kyi. Her image helped to organise the nationwide vote of displeasure with the military regime and its successor. With the counting done, there can be no doubt that Myanmar’s people would prefer a future where the armed forces constrain their political ambitions. In practice this will require the NLD to make some serious decisions very quickly. Much of today’s talk deals with who will hold the high offices. Daw Aung San Suu Kyi’s constitutional status is a big part of that story. But too much attention to her future role may serve, ultimately, as a distraction from the heavy policy work that the NLD now needs to accept as its own.
Migrant rights group presses govt on stalled registration Myanmar Times 7th Dec 2015
The call comes as the two sides prepare to meet in Thailand on December 22 and 23 to discuss the current problems, which have seen many workers unable to extend their legal status due to a lack of coordination and agreement between the two governments over a stalled registration program. Myanmar says it hopes to renew an expired memorandum of understanding on labour migration with Thailand, a proposal rights groups have welcomed. The Migrant Worker Rights Network (MWRN) said in statement that that the governments should enable those who were registered under previous labour programs – such as the National Verification and memorandum of understanding processes – to renew their passports and visas through “efficient, fast and low-cost transparent processes”.
Corruption must be stopped: Suu Kyi Eleven 7th Dec 2015
Revenge must be avoided and those who did wrong should be allowed to make amends but the National League for Democracy must start fighting corruption in the executive branch, Aung San Suu Kyi told her MPs in waiting. Suu Kyi met candidates for upper Myanmar in Pyinmana, Nay Pyi Taw, on December 5, prioritising the rule of law, internal peace and national reconciliation. “We will not take a U-turn or aim to take revenge. Humans are erroneous and they can make changes. Errors commonly appear at work. We can allow those who do wrong to make positive changes,” Tin Htut Oo, the chair of Mandalay Region NLD, quoted Suu Kyi saying. “We must convince people that our administration will be secure. We must start by fighting corruption in the executive branch. We must change dishonest behaviour but not for giving punishment. If the people lose trust, the NLD will not win their support,” San San Win, the new MP for Chauk Township, Magway Region, reported Suu Kyi saying.
Ethnic groups are priority: Tin Oo Eleven 7th Dec 2015
The patron of the National League for Democracy Tin Oo said that the election victory would only be successful when peace was established. He and leader Aung San Suu Kyi were meeting newly elected representatives in Pyinmana Township, Nay Pyi Taw. Suu Kyi met new NLD MPs from Mandalay, Sagaing, Kayah, Chin, Magway, Shan, Kachin regions and states and Naga, Danu and Palaung. “We won in 1990, in the 2012 by-elections and on November 8. However, we cannot assume it was a victory. Only when we can fulfill the goodness of all ethnic groups living in the country,” said Tin Oo. He said: “We were suppressed in the past since we were the opposition party. The party chairperson faced many threats. The public sympathise, rely on us and support us. That’s why we won.”
In Burma, America Is Easing Out the Chinese Newsweek 5th Dec 2015
Relations between the U.S. and China have grown tenser as the latter has developed economically and advanced internationally. Few Americans want to cede their dominant position, while most Chinese are determined to regain what they believe to be Beijing’s rightful influence.The two nations are waging a bitter but so far nonviolent struggle in Burma, or Myanmar. And the U.S. appears to be winning. For decades Burma’s military ruled ruthlessly. The West responded by isolating and sanctioning the generals, who renamed their nation Myanmar over popular opposition. The junta turned to China for military cooperation and economic support. Beijing, which desired Burma’s natural resources, including minerals, timber and water, was happy to oblige. The embrace from Burma’s northern neighbor grew ever tighter—too tight, in the view of many Burmese.
Myanmar president to form new govt, transfer power The Statesman 5th Dec 2015
Myanmar President U Thein Sein on Saturday pledged to try his best to form the new government and smoothly transfer power to it. Every government should take into consideration to have continuous success in transforming the democratic process and development in a calm and peaceful manner, Xinhua quoted U Thein Sein as saying in his message to the country. He urged all stakeholders to participate in the peace process, underlining that implementing a framework for political dialogue which is to be set up soon is being drafted by a special dialogue framework drafting committee. The remaining ethnic armed groups which have not participated in signing the Nationwide Ceasefire Accord (NCA) were needed to take into account the people's lives in conflict areas, he said.
US Calls for Probe of Reports of Burma Military Atrocities The Irrawaddy 4th Dec 2015
The United States on Thursday called for a credible, independent investigation by Burma’s government of reports of military atrocities in the country’s Shan State, saying they were reprehensible, if true. A rights group, the Shan Human Rights Foundation, accused Burma’s army last week of bombing schools and Buddhist temples, firing on civilians and rape in an offensive against ethnic rebels in eastern Burma that has uprooted more than 10,000 people. “We are concerned by reports of Burmese military atrocities, including allegations of indiscriminate attacks on civilian populations and infrastructure, rape, and other acts of sexual violence,” said Katina Adams, a spokeswoman for the US State Department. “These allegations, if true, are reprehensible, and we urge the Government of Burma to undertake a credible, independent investigation into these allegations, and to hold perpetrators accountable for their actions.”
Arakan National Party stakes claim for post of chief minister Myanmar Times 4th Dec 2015
The ANP emerged as the single largest party in the 47-seat Rakhine assembly but fell just short of an overall majority. U Aye Thar Aung, a member of the ANP central executive committee who was among 22 party candidates to win a seat in the Union Parliament in Nay Pyi Taw, noted that the chief minister is appointed by the president who will be nominated by the National League for Democracy. “If the NLD appoints a chief minister from the NLD, then the members of government will also come from the NLD. So we would not be able to form a government … I think that the NLD will negotiate with us [ethnic parties] over this issue,” he told The Myanmar Times yesterday. Despite the success of Daw Aung San Suu Kyi’s party in securing an absolute majority in the Union Parliament, or Pyidaungsu Hluttaw, U Aye Thar Aung said she would still need the support of ethnic parties to carry out her goals.
NLD govt urged to reform lucrative jade sector Myanmar Times 3rd Dec 2015
Myanmar's next government must implement urgent reforms of the jade mining sector, Global Witness, a UK-based watchdog, says in a report released today that details a web of powerful companies allegedly run by a Chinese drug lord. The report, Lords of Jade, focuses on Wei Hsueh Kang – who is wanted in the United States on narcotics charges and has a US$2 million bounty on his head – and the network of shell companies he is said to have established, enabling him to evade US sanctions. One of those companies was allegedly taking part in depositing waste at the tailings dump in Hpakant that collapsed on November 21, killing at least 114 people. “The new government of Myanmar and its international partners should sit down at the earliest opportunity to agree a road map for reforming the jade business and prising it from the grip of the rogues’ gallery of military hardliners, drug lords and cronies that currently run the show,” Global Witness analyst Juman Kubba said in a statement.
We can work together Myanmar Times 3rd Dec 2015
Few details were released of her two separate meetings in Nay Pyi Taw, but all participants agreed to ensure a smooth transition that reflected the result of the November 8 election, which her National League for Democracy won in a landslide. Daw Aung San Suu Kyi’s reception by Senior General Min Aung Hlaing, the current head of the military that had kept her under house arrest for some 15 years, carried great symbolic importance. While U Thein Sein could be looking forward to retirement after his Union Solidarity and Development Party was crushed in the November 8 elections, Sen Gen Min Aung Hlaing will in effect be sharing power with the NLD leader through the military’s control of three key ministries and its ability to bloc constitutional change in parliament.
MPs move to protect domestic firms Eleven 3rd Dec 2015
The Economic and Trade Development Committee of the Lower House is preparing three bills to protect domestic firms from international competition. They are the Safeguard, Anti-Dumping and Countervailing bills. Dr Win Myint, the secretary of the committee, said although Myanmar had signed up to free trade under the World Trade Organisation’s basic principles, developed countries like the United States protected its domestic businesses. Win Myint said: “All countries have to agree to free trade according to the principles of the WTO. However, free trade has pros and cons. An economy can be damaged by cheap imports. Developed countries, like the US, practise laws to protect domestic businesses. We need to protect our firms.” Five similar laws have been enforced, one has been withdrawn, one is being proposed and three are being scrutinised, three are to be revoked and three are being drawn up by the committee.
US Nominee to Be Burma’s Envoy Does Not See Big Sanctions Changes The Irrawaddy 2nd Dec 2015
US President Barack Obama’s nominee to be ambassador to Burma said on Tuesday he does not anticipate major changes in US sanctions in the wake of the country’s historic election last month. “I would not anticipate, nor recommend any dramatic change,” Scot Marciel, currently a deputy assistant secretary of State and former ambassador to Indonesia, said at his confirmation hearing before the Senate Foreign Relations Committee. However, Marciel said the sanctions system is “somewhat dynamic” and allows the measures to be eased if the targets are found to have made significant changes. Nobel peace prize winner Aung San Suu Kyi’s National League for Democracy (NLD) won a resounding victory in Burma’s Nov. 8 polls, which were seen as a significant step toward ending decades of military rule. The Obama administration, which has continued deep concerns about human rights and other issues in the country, has remained cautious. US officials have said they would watch for the democratic process to move forward before lifting more sanctions, which target more than 100 individuals and businesses and limit US investment in Burma.
MPs reach compromise on mining amendments Myanmar Times 2nd Dec 2015
After almost three years of debate, MPs have approved amendments to the 1994 Myanmar Mining Law – a step that could potentially usher a wave of foreign investment into the sector. The Pyidaungsu Hluttaw approved all of the recommendations made by the bill committee, which had been working since earlier this year to reconcile the different opinions between MPs in the Amyotha Hluttaw, or upper house, and the Pyithu Hluttaw, or lower house. The debate focused on how much power over licensing and approvals to delegate to state-and-region-level authorities, and which areas would be opened up to foreign investment. Upper house MP U Nay Win Tun, who is both a mining entrepreneur and head of the Mining and Natural Resources Committee, said he was satisfied with the outcome, as it gave more control over mining to regional governments and would help develop the sector.
Aung San Suu Kyi and Myanmar General Meet, Taking Steps Toward Sharing Power The New York Times 2nd Dec 2015
She is the former political prisoner whose party triumphed in elections last month. He is the commander in chief of the military that jailed her for the better part of two decades. Their meeting on Wednesday as the two most powerful people in Myanmar was a crucial first step in the fragile transition from a military-backed government to one in which the military will share power with the democracy activists it once oppressed. The talks between the leader of Myanmar’s democracy movement, Daw Aung San Suu Kyi, and the commander in chief of the military, Senior Gen. Min Aung Hlaing, were the first face-to-face foray in what will surely be complex negotiations over how they will share power.
Win Htein: Suu Kyi Can Be President Within 5 Years The Irrawaddy 2nd Dec 2015
A spokesperson for the National League for Democracy (NLD) has expressed confidence that the party’s chairwoman could accomplish the enormous feat of amending Burma’s Constitution and assuming the presidency within five years. Aung San Suu Kyi, the leader of the opposition party that won a landslide victory in the Nov. 8 election, is barred from the job due to a constitutional clause believed to have been written expressly to preclude her. “I believe we can amend the Constitution,” said party spokesperson Win Htein, speaking to Radio Free Asia’s Burmese service on Tuesday. Win Htein said that two key provisions stand in the way of a Suu Kyi presidency: 59(f), which bars her from the post, and 436, which grants the military veto power over amendments to parts of the charter.
Framework drafting begins at MPC mizzima 2nd Dec 2015
A nine-member team began the task of drawing up the details of a political dialogue framework at the Myanmar Peace Centre (MPC) in Yangon yesterday, according to a report in the Global New Light of Myanmar on 2 December. The government has selected Dr Kyaw Yin Hlaing, a director at Myanmar Peace Centre, as its representative to the team, while political parties named U Naing Ngan Lin who is currently Pyithu Hluttaw (Lower House) representative from the National League for Democracy party. The framework is expected to be submitted for approval by the President on 15 or 16 December and will first require approval from the relevant meetings on 7-9 December in Yangon and 12-14 December in Nay Pyi Taw.
Customs
Issuance of General License Regarding Certain Exports to or from Burma U.S. Department of the Treasury 7th Dec 2015
Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a six-month general license to authorize certain trade-related transactions otherwise prohibited by the Burmese Sanctions Regulations (BSR). This general license allows individuals, companies, and financial institutions to conduct most transactions otherwise prohibited by the BSR that are ordinarily incident to the export of goods, technology, or non-financial services to or from Burma – including participating in trade finance transactions and paying port fees as well as shipping and handling charges associated with sending goods to or from Burma. This general license authorizes certain transactions ordinarily incident to exports to or from Burma involving Specially Designated Nationals (SDNs) and SDN-owned entities involved in the exportation of goods to or from Burma; however, it does not authorize any transactions to, from, or on behalf of an SDN, or any other person whose property or interests in property are blocked, including any entity in which SDNs own, whether individually or in the aggregate, directly or indirectly, a 50 percent or greater interest. This general license does not authorize a U.S. financial institution to advise or confirm any financing by SDNs or blocked persons.
Imports decline, still exceed exports Eleven 3rd Dec 2015
Myanmar’s import volume, including car imports, has reached US$9 billion this year, down more than $250 million from the same period last year, according to the commerce ministry. From April 1 to November 13 in the 2015-2016 fiscal year, imports amounted to $9.85 billion, while last year’s import value reached $10.1 billion. Myanmar primarily imports capital goods, personal goods and raw materials. Myanmar's raw material imports include wheat seeds, wheat powder, petroleum products, crop oils, chemicals, paints, dyes, fertilisers, plastic, rubber, paper, hanks, cigarettes, steel products,corrugated iron sheets, tyres and inner tubes. Capital goods include cement, fishing nets, train coaches and related materials, aircrafts and related materials, automobiles and spare parts, ships, power tractors, trailers, machines, other vehicles, telephone and telecommunications equipment, TVs, computers, air-cons, engines, machines, materials related to the power generation, construction materials, steel construction materials, wires, spare motorcycle parts, bicycles, cameras, films, chemical equipment and other materials.
Companies begin to feel the heat as import costs climb Myanmar Times 2nd Dec 2015
New laws and regulations are urgently needed to control the kyat, they said, which has fallen by more than 25 percent to the US dollar this year to K1300 yesterday, its weakest since Myanmar adopted a managed float in 2012. In the unofficial market, the rate has reached up to K1315. The currency seems a one-way bet amid growing government deficits and the near-term prospect of rising rates in the US. “Rising US dollar prices are directly affecting importers, but consumers are facing the most difficulties as the price of commodities is rising and will continue to rise,” said U Ye Min Aung, director of Myanmar Agriculture Public Corporation (MAPCO). “When US dollar prices rise, traders cannot import as much as before, so local prices increase even further,” he said. “The Ministry of Commerce, the Central Bank, Myanmar Investment Commission and the Ministry of Finance must meet and work out how to solve the problem.”
Defense & Security
Defence deal with Israel approved Myanmar Times 2nd Dec 2015
MYANMAR is moving to strengthen its ties with Israel, with parliament agreeing on November 30 to the signing of an agreement aimed at closer collaboration between the two countries. Ties between the two go back to 1948, when both countries became independent. In 2013, they celebrated 60 years of diplomatic relations. Deputy Minister for Defence Brigadier General Aung Thaw told the Pyidaungsu Hluttaw that the memorandum of understanding to be signed by the two countries would open up more defence opportunities for Myanmar. This is believed to be a reference to the embargo that prevents many countries from selling arms to the Tatmadaw.
Myanmar Navy Release New Offshore Patrol Ship Defense Studies 3rd Dec 2015
Myanmar has a current fleet of offshore patrol the Osprey-50 class supply ships from Denmark with hull number 55 Indaw (named a lake in the Sagaing Region) and hull number. 57 Inya (named the Inya Lake in downtown Yangon). Ship's main weapon is a machine gun, a Bofors 40/L60, one machine gun and cannon Oerlikon 20mm double barrel, by active since 1982.The MNS Inle (MNS: Myanmar Navy Ship) offshore patrol vessels, seems to be a replacement or supplement for the old ship two ships stationed for more than 30 years.
Energy
Sembcorp Industries signs S$420 million accord to develop Myanmar's biggest power plant The Straits Times 7th Dec 2015
Sembcorp Industries has announced a memorandum of understanding with the Myanmar government to invest in and develop the country's largest gas-fired power plant to help address a power shortage. The company said it wholly-owned subsidiary, Sembcorp Utilities, on Monday (Dec 7) signed the MOU with Myanmar's Department of Electric Power Planning (DEPP), under the Ministry of Electric Power of Myanmar (MOEP), over the project. The US$300 million (S$420 million) 225-megawatt power plant will be built in central Myanmar near Mandalay, Sembcorp Industries said in a statement to the Singapore Exchange on Monday. The agreement was signed by Mr Tan Cheng Guan, Sembcorp Industries' executive vice-president and head of group business development and commercial, and Mr U Khin Maung Win, DEPP director-general, in the presence of senior government officials of Myanmar.
Myanmar to submit EITI report next month Myanmar Times 8th Dec 2015
The initiative is the global standard for transparency on natural resource governance. Myanmar’s involvement has been widely welcomed, although many have raised concerns that the report will not include adequate information on a number of troubled sectors, including jade. Nevertheless, Myanmar’s EITI coordinator U Zaw Oo said at a press conference yesterday that he expects the country will “pass this examination, and will start reforming plans after that”. The report is expected to be made public at the end of December. Myanmar was approved as the 45th candidate country at an international EITI board meeting in July 2014. A multi-stakeholder group including government officials, private enterprises and civil society groups was formed to oversee the country’s application in early 2014.
Financial Services
Six companies to trade on Yangon Stock Exchange Myanmar Times 9th Dec 2015
The companies are First Myanmar Investment Company, First Private Bank Limited, Great Hor Kham Public, Myanmar Agribusiness Public Corporation, Myanmar Citizens Bank and Myanmar Thilawa SEZ Holdings Public. “We will start with those six. On completion of the formalities they will start trading in February or early March,” Myanmar Securities and Exchange Commission chair U Maung Maung Thein told a packed audience at the former Central Bank building on Sule Pagoda Road, now home to the Yangon Stock Exchange, or YSX. The names of ten companies awarded provisional underwriting licences have yet to be announced. Takashi Hibino, president and chief executive officer of Daiwa Securities Group told The Myanmar Times he hoped the names, which include a Daiwa joint venture, will be announced soon. Sources at a number of the companies said today they still need to open offices, hire staff and install the necessary software.
Myanmar opens first stock exchange but will have to wait until next year to start trading South China Morning Post 9th Dec 2015
Myanmar officially launched its first modern bourse on Wednesday, but without a single stock to trade until next year, as the nation’s latest drive for economic revitalisation struggles to take flight. Aung San Suu Kyi’s pro-democracy party swept elections last month, boosting confidence in the former junta-run nation's reforms, which have also nudged open the door to a once reclusive economy. The Yangon Stock Exchange (YSX) was launched with the clanging of a gleaming ceremonial bell on Wednesday, marking an ambitious new stage in the nation’s efforts to ignite investment.
Myanmar bourse launches long quest for regional stardom Financial Times 8th Dec 2015
Myanmar will finally ring the trading bell to launch its new stock exchange on Wednesday but bold talk that Asia’s newest frontier market could best more developed near-neighbours such as Vietnam will not be tested just yet. Investors and brokers say there is unlikely to be any dealing on debut, as authorities are still scrambling to list companies whose long international isolation has raised hopes of big profits now the country is opening up. In an echo of the national political skirmishing under way after landmark elections last month, the rhetoric around the new Japan-backed bourse in Yangon is of patience in pursuit of a bigger goal. Market regulators and prospective participants insist the potential rewards outweigh the drag of continuing US sanctions, the lack of financial architecture and a global bearishness about many emerging markets.
Myanmar opens stock exchange as rehabilitation continues CNBC 8th Dec 2015
Former pariah state Myanmar is set to launch its new stock exchange on Wednesday, marking the next stage in the rehabilitation of a country basking in the glow of strong foreign inflows and a new pro-business regime. Reportedly a $24 million investment, the Yangon Stock Exchange (YSX) was founded by the state-owned Myanmar Economic Bank, Daiwa Securities and Japan Exchange Group, a company that operates the Tokyo Stock Exchange. The launch marks yet another milestone in the rapid modernization of Myanmar, which has been opening up its economy following decades under military rule. Since Western sanctions were lifted in 2013, foreign direct investment (FDI) hit a record $8 billion during the 2014-2015 fiscal year as multinationals including Coca-Cola, Telenor, Colgate Palmolive, and Mitsubishi bet on an emerging consumer boom.
2m more tourism jobs expected Eleven 7th Dec 2015
The tourism sector will create more than 2 million more jobs within the next five years, says Tin Tun, general secretary of the Myanmar Tourism Federation. “According to a research paper conducted by experts from Luxembourg, the country’s tourism sector is expected to create more than 2 million new jobs in the next five years. This estimation is likely to be based on tourist arrivals. It may be true if tourist arrivals hit eight or nine million in the upcoming years. It may bring benefits to many people,” he added. Plans are underway to open tourism-related courses so as to create more job opportunities in the country’s hotel and tourism sector. Employment opportunities created by domestic and foreign tourism companies make up about 4 per cent of the overall jobs market. The Ministry of Hotels and Tourism is cooperating with Myanmar Tourism Federation and other organisations on promotion. The tourism federation in Thailand said that Thailand’s tourist arrivals will hit about 30 million in 2015.
Foreign trade volume reaches $17 billion with $2.6 billion deficit Eleven 7th Dec 2015
During the current fiscal year, Myanmar’s foreign trade volume has risen to over US$17 billion, and the trade deficit amounts to more than $2.6 billion, according to the Ministry of Commerce. In the 2015-2016 fiscal year, the foreign export volume between April 1 to November 31 exceeded $7.2 billion, while the import volume nearly reached $9.9 billion. Myanmar’s trade volume this year did not surpass last year’s volume, particularly due to a decline in sea trade. The country spent more than $5.1 billion on investment products, over $2.8 billion on industrial raw materials and over $1.8 billion on consumer goods. As for exports, Myanmar earned over $1.5 billion from exports of agricultural products exports, over $4 million from animal products, over $256 million from aquatic products, over $820 million from mining products, over $119 million from forestry products, over $4.2 billion from finished-industrial products and over $258 million from exports of other commodities. Myanmar’s trade volume during the same period last year was more than $17.4 billion; this year’s volume is $371 million lower, according to the Ministry of Commerce. Myanmar conducts international commerce via sea routes and border routes with China, Thailand, Singapore,
List of 10 YSX underwriters revealed Myanmar Times 4th Dec 2015
Ten securities companies, named below, intend to operate as underwriters for the new Yangon Stock Exchange which is due to open on December 9, The Myanmar Times has learned. The exchange has not yet made an official announcement, but corporate sources and all but one of the companies involved have confirmed that provisional licences, dependent on registering a subsidiary with the Directorate of Investment and Company Administration and putting up K15 billion (US$11.5 million) in initial capital, will be granted to the following:
CB Bank launches new trade finance products Myanmar Times 4th Dec 2015
Local lender Co-operative Bank, better known as CB Bank, has ramped up its trade financing services and will now provide financing directly to exporters, becoming the first bank in the country to do so. At the launch of the new products in Yangon yesterday, U Kyaw Lynn, the bank’s executive vice chair said exporters will now be able to take out loans, using their trade documents as collateral. This will make local exporters more competitive, allowing them more flexibility, as well as reducing their credit and exchange rate risks, he said. The bank’s newly formed trade unit team will handle international trade finance, based on four new products. The first is financing loans before shipment, to cover working capital costs. The second is invoice financing, which allows exporters to borrow money based on what they are owed. The third is export bills purchase under documents against payment, which means the bank can buy an exporter’s trade documents in return for the amount of money owed by the buyer, before the trade payment is made.
List of 10 Yangon Stock Exchange underwriters revealed Myanmar Times 3rd Dec 2015
Ten securities companies, named below, intend to operate as underwriters for the new Yangon Stock Exchange which is due to open on December 9, The Myanmar Times has learned. The exchange has not yet made an official announcement, but corporate sources and all but one of the companies involved have confirmed that provisional licences, dependent on registering a subsidiary with the Directorate of Investment and Company Administration and putting up K15 billion (US$11.5 million) in initial capital, will be granted to the following: 1. AYA Bank’s wholly owned subsidiary, AYA Trust Securities Company 2. Co-operative Bank’s wholly owned subsidiary CB Bank Securities 3. Daiwa Securities and state-owned Myanma Economic Bank’s joint venture subsidiary, Myanmar Securities Exchange Centre 4. Global World Securities, an Asia World affiliated company 5. Green Circle Company, known in Myanmar for its Ve Ve drinks brand, in a joint venture with Hong Kong-based Pins Capital, called Expert Investment Securities 6. Innwa Bank linked Aung Myint Mo Min Securities 7. KBZ Group and Singaporean firm Stirling Coleman Capital’s joint venture company KBZ Stirling Coleman Securities 8. Loi Hein Company and Thai firm KT ZMICO’s joint venture subsidiary KTZ Ruby Hill Securities 9. United Amara Bank’s wholly owned subsidiary Amara Securities 10. Young Investment Group’s wholly owned subsidiary, Union Trust Securities Company
Pacific Cross Health Insurance eyes Myanmar Asia Insurance Review 3rd Dec 2015
Thai health insurer, Pacific Cross Health Insurance, will expand into Myanmar next year, with plans to cooperate with state-owned Myanmar Insurance through reinsurance. The insurer is in the process of planning this business. It believes that Myanmar is the most attractive for investment now as purchasing power is rising, reported The Nation newspaper. Mr Tom Thomson, CEO of Pacific Cross Health Insurance, said in an interview with the newspaper that the company had drawn up a business plan for the next five years to 2020, targeting growth in gross premium income of 40% per year to reach THB1 billion (US$28 million).
Scramble behind the scenes as Yangon Stock Exchange nears launch Myanmar Times 2nd Dec 2015
Ten companies have been offered conditional underwriting licences for the Yangon Stock Exchange, but several say they are not yet ready to operate. According to sources within a number of the companies, those offered provisional licences include AYA Bank, CB Bank, Daiwa Securities, Asia World affiliate Global World Securities, Innwa Bank-linked Aung Myint Moe Min Insurance, Loi Hein Company, KBZ Bank, United Amara Bank and Young Investment Group. U Maung Maung Thein, chair of the Myanmar Securities and Exchange Commission (MSEC), said he could not confirm these names, as a number of companies have not yet completed the formalities necessary for a final licence – such as registering a subsidiary with the Directorate of Investment and Company Administration and putting up K15 billion in initial capital. The announcement was originally planned for June. At a meeting on November 30, he “urged the companies to pay their licencing fees by December in preparation for the launch date”, state media reported yesterday.
MIC permits five firms Eleven 3rd Dec 2015
The Myanmar Investment Commission has permitted five businesses, including a hotel project which will be built on the land owned by the army’s Quartermaster-General’s Office, reports say. Three of them were passed with “citizenship investment”, one was a joint venture and the other with foreign investment. The Europe-Asia Beverage Company will produce milk, soymilk and bottled water. Vent D’est and the Manufacturer GFT Enterprise will manufacture garments on a piecework system in Thadukan and Yangon industrial zones. Eden Hotels will build a hotel on 75 acres in Dekkhinathiri, Nay Pyi Taw. The Fortune International Ltd will build a hotel on 5.7 acres owned by the Quartermaster-General Office on Ngapali beach, Rakhine State, on a build-operate-transfer basis.
Food & Agriculture
Farmers protest against company owned by bank chairman Eleven 7th Dec 2015
About 80 farmers staged a protest in Taungoo Township, Bago Region, demanding Kaung Myanmar Aung Company owned by Co-operative Bank chairman Khin Maung Aye return their seized farmland in Ngagarmauk village. “We protest to demand our farmland back. We had to apply several times to get permission for the protest. About 80 acres of farmland owned by our family were seized. We want it back as soon as possible. [The company] seized more farmland than was allowed. We face losses since 2009 as it destroyed our crops to seize the land. And we face lawsuits about the land grabbing. We’re facing legal action, another court hearing is scheduled for December 7. Currently, 12 farmers face legal action. I’m facing three charges. That’s why we protest. We don’t want compensation for the land. We only want the land back for the future of our families,” said Saw Khar Faw, who led the protest. Kaung Myanmar Aung was permitted 2,400 acres of farmland in 2009 under the name of chairman Khin Maung Aye. It failed to plant up all the land within four years under the terms of the contract and only succeeded in cultivating around 200 acres.
WFP Extends Myanmar Operations Myanmar Business Today 6th Dec 2015
The World Food Programme (WFP) has extended its current operation in Myanmar by two years, the UN agency said. WFP said the extension has been made to ensure that food assistance continues to reach the most vulnerable during the current transition of political power. With the newly elected government due to be formed and come into power in early 2016, WFP operations have now been extended until the end of 2017. Previously, WFP was due to end its current program cycle at the end of this year. However, the UN agency said it currently faces a funding shortfall of $40 million to meet all the food assistance needs until June 2016. Dom Scalpelli, WFP Country Director and Resident Representative, said WFP will continue to focus on reducing poverty, food insecurity and under-nutrition.
Health & Life Sciences
UNAIDS pledges healthcare for Myanmar patients Eleven Myanmar 2nd Dec 2015
UNAIDS, the Joint United Nations Programme on HIV/AIDS, promised in a statement on December 1 that it will provide nearly 100 per cent of the health services and medicines for AIDS patients in Myanmar by 2020. UNAIDS’s five-year anti-AIDS national strategy aims to provide healthcare for 90 per cent of HIV-exposed patients, educate the infected, treat at least 90 per cent of the infected, control the rate of infection and reduce the social stigma toward patients.
ICT
Telcos targets tourists with SIM promotion Myanmar Times 7th Dec 2015
As Myanmar increasingly becomes a tourist destination, the country’s telcos have started selling SIM cards targeted at foreign visitors. State-owned telecoms operator Myanma Posts and Telecommunications (MPT) announced the sale of its tourist SIMs on November 30, and Telenor Myanmar revealed a similar promotion on December 3. MPT cards are now on offer at Yangon International Airport, and will be available later at hotels and other locations. Telenor said its SIMs will be sold at stores, airports and hotels, and through travel agents. The competitor telcos have both put together deals where customers pay more than the usual K1500 for SIM cards for pre-loaded credit and a certain amount of free browsing on the internet. MPT’s SIM comes pre-loaded with K5000 in credit and 1.5 gigabytes of free data, which both expire after 10 days. Telenor’s card, on the other hand, offers the same amount in credit, 1GB of free data and unlimited access to Facebook, according to the company. The Norwegian telco’s tourist package lasts two weeks after customers make their first call on new SIMs.
Telenor Myanmar signs on new tower supplier Telecomasia 2nd Dec 2015
Telenor Myanmar has contracted Malaysian infrastructure company OCK Group and its Myanmar partner King Royal Technologies to build and operate telecom towers in the market. The company is seeking to extend its infrastructure supply chain to help it comply with the terms of its mobile license by achieving 90% coverage within five years of operation, Telenor Myanmar head of communications Joachim Rajaram told the Myanmar Times. He said the company has built nearly 3,700 tower sites to date and will need to build close to 9,000 to achieve nationwide coverage. With the rollout progressing from high-density urban areas to smaller towns, villages and urban areas, the company has identified a clear need to expand its infrastructure provider network. Telenor Myanmar has existing agreements with providers including Apollo Towers, Eco-Friendly Towers and Irrawaddy Green Towers.
Communications Ministry to Issue Fourth Telco License Before New Govt Takes Office The Irrawaddy 8 Dec 2015
After months of delays, the Ministry of Communications and Information Technology now says that Burma’s fourth and final telecoms operator will be finalized before the new government takes office at the end of March. The tender for the position was opened to domestic firms in July, and the fourth license was expected to be awarded by mid-October. However, the decision was once again delayed, reportedly due to concerns over Burma’s uncertain political climate. The Ministry of Communications and Information Technology received letters of interest from 17 companies, 11 of which were selected to be a part of a newly formed public company that will work in tandem with a foreign service provider selected by the government. “We formed the public company from local firms in November, and now we’re in the process of selecting a foreign firm to work with this company. After this decision has been made, we will issue the license,” Chit Wai, deputy permanent secretary of the Communications Ministry, told The Irrawaddy.
Infrastructure
Myanma Railways K65.4b loss derails profits Myanmar Times 7th Dec 2015
The deputy minister was explaining the request from Myanma Railways for K10.11 billion in the supplementary budget, which has come under fire from some members amid criticisms of waste and a more robust approach to scrutiny. From 1989 until 2006, the railways regularly made a profit, U Myint Thein said. “For the first time, the department lost K12.5 billion in 2006-2007 financial year, and the amount has grown every year since, reaching K65.4 billion in financial 2014-2015,” he told MPs, adding, however, that the “profits” of earlier years depended in part on government fuel and other subsidies. For instance, the railways were not required to pay interest on the state’s investment to Myanma Economic Bank, and foreign exchange was calculated at the then-official rate of K6 to the US dollar.
Govt reserves land for Rakhine state SEZ Myanmar Times 7th Dec 2015
The government has set aside 1708 hectares (4289.32 acres) for the future Kyaukphyu Special Economic Zone in Rakhine State, parliament heard on December 3. Deputy rail minister U Myint Thein, the chair of the Kyaukphyu SEZ management committee, said the zone would comprise two deep-sea ports of 148 hectares and 95 hectares in extent respectively, a 978-hectare industrial zone and a high-end housing project covering 494 hectares. “We invited tenders in accordance with internationally recognised procedures. The assessment of bids is now complete, and we are proceeding toward negotiation in detail,” the deputy minister told MPs. The industrial zone site and associated housing are located in southern Kyaukphyu township. The first deep- sea port is north of Ma De island, and the second port is north of Yan Byal island. Care had been taken to avoid villages, roads and residential areas, said U Myint Thein.
Magway Infrastructure Financier Runs off With Millions of Kyat in Cash Myanmar Business Today 6th Dec 2015
Myanmar Land and Development Company, which has a permission to build roads and bridges in Minbu district, has filed a lawsuit against its Finance Manager for embezzlement of over K180 million, according to Magway Regional Police Office. The company’s Finance Manager U Kyaw Maung allegedly took the K187.6 million from the budget without informing the company Director U Khine Myo Min. An official from the Magway Region Police Office said, “The company has filed a lawsuit against its Finance Manager for embezzlement. The finance manager has run away with the company’s money. We are trying to arrest him as soon as we can in cooperation with district police offices.
NLD leader talks trash with young visitors Myanmar Times 4th Dec 2015
Noting that December 12 and 13 were devoted to picking up trash throughout the country, the NLD leader asked the 50-strong group if any of them were from her own constituency. Daw Aung San Suu Kyi had taken out time from the closing session of the current parliament to meet the group of young visitors from Yangon Region. “Everyone needs to pick up trash,” she told the visitors. “There is an event on December 12 and 13.” Perhaps contrary to their expectations, she peppered the group with questions. “Did you arrive this morning? What have you observed? Did you take any pictures?” She brushed aside the young people’s reply that they had observed hluttaw at work. “That’s not enough. You can do that by watching TV. Try harder next time,” she said, before going back to work.
Construction body calls for reform to opaque tendering process Myanmar Times 3rd Dec 2015
The Myanmar Construction Entrepreneurs Association (MCEA) held a special meeting last week to discuss the urgent need for change. Many members said they hope the new government will introduce a transparent tendering system for the first time. U Thar Htay, chair of the 3000-member industry association, said that in the past, only a handful of local companies have been able to compete with giant foreign developers. “We have often competed in tenders in Yangon Region, but have never once won,” he said, referring to his Myanmar Construction and Development Public Company, set up last year by a number of MCEA members.
Govt Tables Kyaukphyu SEZ Plans in Parliament The Irrawaddy 4th Dec 2015
Burma’s government is seeking parliamentary approval to begin the first phase of the Kyaukphyu special economic zone (SEZ) in Arakan State, lawmakers said on Friday. Myint Thein, deputy minister for Rail Transportation and head of the Kyaukphyu SEZ management committee, outlined the long-mooted project, billed as the country’s western economic gateway, to Lower House lawmakers on Thursday. MPs were told to register by Monday for debate on the project in Parliament next week, with the government seeking the legislature’s approval to use the land earmarked for the zone. The Kyaukphyu SEZ would “be set up on 4,289 acres of land,” Myint Thein informed lawmakers, according to the state-run Global New Light of Myanmar. The project is slated to include an industrial zone, a housing estate and two deep sea ports, on Ramree and Maday islands respectively, according to the deputy minister. Tender bids for development of the zone closed last November, with a total of 12 proposals submitted by one local and 11 international firms. However, the opaque tender and evaluation process has been beset by delays, with no successful bidder yet announced, despite official assurances that the process was nearing completion.
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