| Regional Affairs
End to bartering kills India-Myanmar trade Myanmar Times 14th Dec 2015
On December 1, India ended long-standing rules allowing border trade to be settled by an exchange of goods. Since then, business has almost stopped, said U Khin Mg Tin, joint secretary of the Border Trade Chambers of Commerce Association in Kalay. India’s central bank said last month that barter trade is no longer necessary, as an adequate banking system is now in place on both sides of the border. However, banks on the Indian side are not yet issuing letters of credit said U Khin Mg Tin. Traders don’t know when this will start, he said. “There are weaknesses in the banking systems in both countries. I think the telegraph transfer system would work in Myanmar, but they don’t have this in India,” he said. Trade can be settled in any “permitted currency”, in addition to the Asian Clearing Union mechanism, the Reserve Bank of India said in a November circular. Under the ACU, traders can settle border transactions through their central banks.
Tough decisions for NLD as Myitsone suspension deadline looms Myanmar Times 14th Dec 2015
For both sides the pendulum hinges on Daw Aung San Suu Kyi, and whether she will sacrifice a site of great environmental and cultural significance, or choose instead to risk alienating China. Either way, she doesn’t have much time. When her National League for Democracy takes up the lead of the government next year, the temporary suspension of the Myitsone dam – located near the confluence of the Maikha and Malikha rivers just north of Myitkyina – will be up for renegotiation. Political analyst Yun Sun from the US-based Stimson Center gives the party a six-to-12-month window before China will demand a yes-or-no response. Working in China’s favour is the opposition leader’s lack of a decisive line on the issue. During her election campaign in Kachin State, Daw Aung San Suu Kyi hedged on questions about the project, which President U Thein Sein suspended for the length of his term in office in September 2011. “It would be irresponsible to make promises without knowing the details of the contract,” she said, adding that she would “do what [she] can”.
National Affairs
Peace deal will be easier under Suu Kyi-led government: Naing Han Thar Eleven 15th Dec 2015
Naing Han Thar, the vice chairman of the New Mon State Party (NMSP), said a peace deal between the Myanmar government and ethnic armed groups will be easier to achieve when the government led by Aung San Suu Kyi comes to power. The NMSP has not signed the nationwide cease agreement (NCA). Naing Han Thar chairs the political coordination committee recently formed by the United Nationalities Federal Council (UNFC) to monitor the NCA process. He is also the vice chairman of the UNFC. “The ethnic armed groups that have not signed the NCA will continue discussing the prospect of participating in the agreement, and the new government, which is to be formed by the National League for Democracy, will surely continue the peace process,” he said. “The situation would be easier. As far as I know, Daw Aung San Suu Kyi accepts the founding of a federal, democratic country, as demanded by the ethnic [minorities], at least according to her words. She joined hands with the ethnic [minority] groups during the 1990 general elections, and I believe she will value the Panglong Agreement more than others, as it was reached during her father’s time. Our country has been in the current conflict for nearly seventy years as the Panglong [Agreement] was breached. The country declined as the agreement was breached. Everyone knows it. So I believe she will make corrections to it,” he added.
NLD fully supports peace process, says CEC member Eleven 15th Dec 2015
The National League for Democracy (NLD) fully supports Myanmar's ongoing peace efforts and cannot have the process disrupted, said the party's central executive committee member Nyan Win. He made the remark after the third meeting of the Union Peace Dialogue Joint Committee (UPDJC), held at Horizon Lake View Hotel in Nay Pyi Taw yesterday. "We fully support the peace process, and we cannot accept any attempt to harm it. Peace is essential for promoting democracy. This is why I showed our support during the meeting," said Nyan Win. The NLD sent two representatives to the two-day meeting of UPDJC for the first time. The first-day session discussed a proposal on the list of representatives from the government, military, parliament and ethnic armed groups to participate in the forthcoming peace conference. The UPDJC meeting continues today.
Facebook activist to be prosecuted under telecommunications law, defamation charges dropped Eleven 15th Dec 2015
The Maubin Township court in Ayeyawady Region yesterday decided to prosecute Chaw Sandi Tun under Section 66(D) of Myanmar's Telecommunications Law. The court dropped the defamation charges against her under Section 500 of the Penal Code. Lt-Col Kyaw Htin of the Southwest Command filed the suit against Chaw Sandi Tun on October 12 under the aforementioned two sections for sharing a collage of photos on Facebook, including one of Aung San Suu Kyi wearing a green htamein (traditional skirt), which she likened to the colour of Tatamdaw uniforms. Chaw Sandi Tun plead not guilty, claiming she did not post the photoshopped image and that there are multiple fake Facebook accounts under the name “Chaw Sandi Tun”. She displayed evidence of the fake accounts. Her lawyer Robert San Aung said the court dropped the defamation charges against due to a lack of evidence. "The judge seems to be fair. I have won over one charge. I will continue to defend myself, as I am not guilty. Being in jail is not very convenient," Chaw Sandi Tun told reporters.
Ten significant laws the parliament had amended or passed (2011-2015) mizzima 14th Dec 2015
1. Telecommunications Law The Telecommunication Law was enacted on Oct. 8, 2013. It was aimed at developing the telecoms sector, including establishing a network that covers the whole country. 2. National Education Law The National Education Law was enacted on Sep. 30, 2014. This law was intended to let universities and colleges administer themselves, to provide free education at a primary level, and allow student associations. 3. The Vacant, Fallow and Virgin Lands Management Law and the Farmland Law These two laws were enacted on March 30, 2012. The first bill allows local and foreign investors, government departments, non-governmental organisations, and farmers to apply for the rights to work on and utilise vacant, fallow and virgin lands to carry out agricultural projects, livestock breeding, mining and other government approved legal projects. 4. The Labor Organization Law 5. Anti-Corruption Law 6. The Right to Peaceful Assembly and Peaceful Procession Act 7. The Contempt of Courts Law 8. The Environmental Conservation Law 9. Monogamy, Religious Conservation, Interfaith Marriage, and Population Control Law 10. Associations Registration Law.
Myanmar's transition committee lays out priorities Channel News Asia 14th Dec 2015
For the first time since Myanmar's independence, the country will see its military government hand over its responsibilities to a civilian government. To ensure a smooth transfer of power, members of the outgoing military government and the National League for Democracy (NLD) have formed a joint eight-member transition committee. One of the committee's members is Win Htein, a close aide of NLD leader Aung San Suu Kyi. His said the team will scrutinise all official documents and spending, starting from the President and Vice-Presidents’ offices. "When we look at the budget, we have to see how much, how many projects they have intended for the next year, whether these projects are feasible or not; it’s our responsibility now,” said Win Htein. Helping the incoming administration work out some of the logistical and administrative queries will be five members from the current team. One of them is Information Minister and Presidential spokesman, Ye Htut.
YSX trades influence rather than stocks, for now Nikkei Asian Review 14th Dec 2015
It seemed fitting that Myanmar opened its first stock exchange on Dec. 9 in a building steeped in colonial history, nearly seven decades after the country gained independence from Great Britain in 1948. With its imposing edifice and soaring columns, the building served as the central bank under British rule, and the Japanese used it as their main financial institution during their World War II occupation of Myanmar. On the exchange's opening day, a ceremony rich with flowery speeches but short on actual trading spoke volumes about the key drivers in the country's rapid opening. The bourse launched with blank trading boards and will not see any companies listed until at least March, according to YSX officials. But for many interest groups, the symbolism was more important than reality. Highlighting the role of Japan in setting up the exchange, the VIPs who thronged the palatial room were dominated by Japanese officials and investors.
MDIF launches $2.4m capacity building program for Myanmar media mizzima 14th Dec 2015
The Media Development Investment Fund (MDIF) announced, on 10 December, the launch of a $2.4 million capacity building program for media in Myanmar funded by Sweden. The program will provide tailored capacity building support to a select group of independent media companies to help them develop the media management skills necessary to establish financially sustainable quality news businesses, the MDIF said in a statement. “This is an exciting yet also challenging time in Myanmar, not least for the media,” said MDIF CEO Harlan Mandel. “Our program will help key independent news outlets respond more effectively to the rapidly evolving political – and media – landscape.”
Time for a Genuine Commitment to Rule of Law The Irrawaddy 11th Dec 2015
The world observes Human Rights Day on 10 December to mark the momentous strides in international human rights law since the adoption of the Universal Declaration of Human Rights (UDHR) in 1948. In Myanmar, recent political changes have been both momentous and transformative. Nonetheless, what was proclaimed by the UDHR as the “equal and inalienable rights of all members of the human family”, continue to be infringed upon by the arbitrary and highly subjective interpretation and application of laws, some of them dating back to British colonial times. Successive governments in Myanmar have used overly broad or vaguely defined laws to curtail freedom of expression that is protected under international law. They often invoke the justification, typically inappropriately, of protecting national security, or to prevent public disorder or avoid outraging the religious feelings of a class. None of these efforts have served or can serve to address or respond to sectarian and religious violence.
New idea floated to allow NLD leader to assume presidency Myanmar Times 10th Dec 2015
The proposal appears to be gaining ground and has now received the backing of a former senior military officer serving as an MP for the ruling Union Solidarity and Development Party (USDP), which was crushed by the National League for Democracy in last month’s elections. Thura U Aung Ko, the lower house MP for Chin State’s Kanpetlet township, told The Myanmar Times yesterday that parliament, with the support of over 50 percent of MPs, could “suspend” section 59(f) of the 2008 constitution, which bars nominees for the presidency who, like the NLD leader, have a spouse or children with foreign citizenship. However, the 2008 constitution – written by the military to protect its interests while gradually transferring power to civilian rule – does not allow for suspending articles, although earlier constitutions did. Changing the constitution to remove section 59(f) would require the approval of more than 75pc of MPs, meaning the military bloc of 25pc in both houses would have to be on board.
Company Slams Tender Process For New Rangoon Business District The Irrawaddy 10th Dec 2015
With construction of a new business district in Rangoon’s north slated to begin next year, an unsuccessful bidder has slammed the tender process for the project that has been in the works since 2013. PATTKO Global Development Company claimed that the tender selection committee, assembled by the commercial capital’s municipal body, lacked experts and called for the process to be reviewed. Tin Hlaing, managing director of PATTKO, told media at a press conference in Rangoon on Wednesday that the tender selection committee did not include any engineering or architectural experts and had therefore failed to competently assess competing bids. “For such a project which is very important for the country, they selected a developer company without any experts from related fields,” Tin Hlaing said. PATTKO was among five companies shortlisted to operate the project, known as the Mindhama Secondary Central Business District (CBD). The over 36 acre project, located in Rangoon’s Mayangone Township, is slated to include hotels, convention centers, galleries, theatres, cinema halls, shopping malls and high-rise buildings, including office space.
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.
Judicial system in need of major redress, says Pyithu Hluttaw committee review Myanmar Times 9th Dec 2015
The standard set for obtaining a law degree has been found to be lacking, says a new report from the Judicial and Legal Affairs Committee. “People in Myanmar can easily earn a law degree in [a short time] through distance education,” said committee member and Union Solidarity and Development Party MP U Tin Htwe, in comments made upon submitting the report’s findings yesterday. The committee found the judicial sector is in need of major repair, with action required to weed out entrenched systems of corruption and bribery. The report said there is a widespread perception that rule of law in Myanmar is weak, and that many citizens feel they lack security – in both social and business terms. It was found that the majority of civil cases in Myanmar are drawn-out affairs, with many taking between five and 15 years to reach their conclusion. “A civil case takes much time for submitting appeal, special appeal and writ. Almost all money from a disputed property has been used for the cost of the legal case,” U Tin Htwe said, adding that property disputes can often run for years. The majority of civil cases relate to sums of money borrowed, with the amounts involved ranging from minor loans to those above K10 million.
Myanmar Political Shift Revives Debate on Sanctions The New York Times 9th Dec 2015
The Burmese tycoon Zaw Zaw, who has been subject to American economic sanctions for nearly seven years, thinks it is time for them to end. At least in his case. His conglomerate, Max Myanmar Group, which has interests in construction, gems, timber and tourism, had been placed on the United States sanctions list for his ties to the army generals who have governed Myanmar, formerly Burma, for five decades. But he has tried to distance himself from the military and has cultivated a relationship with Daw Aung San Suu Kyi, the nation’s pro-democracy leader, whose party, the National League for Democracy, won landslide elections last month. “I expected the N.L.D. would win in a landslide, and I am very happy for it,” he said. “And I hope the U.S. will consider lifting the targeted sanctions on Myanmar, particularly for those who aren’t involved in drug trafficking or arms trading.”
Should the NLD Look West to Bolster Burma’s Economy? The Irrawaddy 9th Dec 2015
With the National League for Democracy (NLD) set to take office in March, a critical question remains in Burma’s post-election landscape: Who will be the party’s key international business partners—countries in the neighborhood or further to the West? Even before her party’s victory in Burma’s historic Nov. 8 election, NLD chairwoman Aung San Suu Kyi met with dozens of ambassadors and other Western diplomats to talk about the future for the former pariah state. But rather than providing clarity for the country’s next business steps, the meeting shone a light on competing interests within Burma’s business community. Maung Maung Lay, vice chairman of the Union of Myanmar Federation of Chambers and Commerce Industry, suggested that Burma’s attention should remain on its tried and true Asean partnerships. “There are more than 600 million people in this region—it’s massive—and the people here have stood with us [Burma] and have contributed to good business partnerships for many years,” he said. “Thailand and Singapore have always supported us. Their investment in our country is huge.” Last year Singapore topped the list of foreign investors in Burma with US$4.2 billion, with Thailand following. China was not far behind.
Myanmar Election: How Key Actors Fared The Huffington Post 9th Dec 2015
The November 8 Myanmar general election was regarded by both local and international watchers as the country's first credible election. The election represents a critical milestone for this fledgling democracy; however, Myanmar's future political, social, and economic trajectory depends heavily on the transfer of power and ensuing formation of government and how the new ruling party is able to govern. The official results were finalized on November 20 with the main opposition party, the National League for Democracy (NLD), emerging as the clear winner. The election not only handed the NLD a long-awaited win, but also framed questions and exposed rising or falling fortunes for everyone interested in Myanmar's future.
Will Aung San Suu Kyi succeed in modernising Burma's economy? The Telegraph 9th Dec 2015
Just weeks after Aung San Suu Kyi’s historic victory in the Burmese elections, the bell for the Rangoon Stock Exchange is set to ring for the first time on Wednesday, launching the south-east Asian country’s first modern stock exchange and heralding what many hope will be its arrival on the international investment scene.Unfortunately, it is not quite as straightforward as that. “I was sitting next to a Hong Kong banker on the plane when I first came here and he was coming to talk about opening the first stock exchange,” says Vicky Bowman, the former British ambassador to Burma (also known as Myanmar) who now runs the Myanmar Centre for Responsible Business. “That was in 1990.”
Customs
U.S. Plans to Ease Myanmar Trade Sanctions Bloomberg 14th Dec 2015
The U.S. Treasury Department is preparing to make it easier for American companies to do business through a port in Myanmar that is owned by a sanctioned company whose reclusive owner has close ties to the ruling military junta. Since July, U.S. banks have been wary of processing payments for trade through the main port in Yangon, Myanmar, after it was discovered that the port is operated by Asia World, a company that Washington has sanctioned since 2010. Asia World is controlled by Steven Law, who is also sanctioned by the U.S. government for illicit activities and aid to the regime. His father, Lo Hsing Han, was known as the “Godfather of Heroin,” and was “one of the world's key heroin traffickers dating back to the early 1970s,” the Treasury Department determined. He died in 2013. Representatives from Asia World told the Wall Street Journal that the company hasn’t received special treatment from either the Myanmar military or government.
Despite Industry Woes, Jade ‘Still Flowing’ at Annual Emporium The Irrawaddy 11th Dec 2015
The number of jade lots on display at this year’s gems emporium for local traders dipped slightly compared with 2014’s showcase, with supply showing some decline but overall resilience in a year that saw the industry subjected to a spate of criticism over the ethnics and safety of the trade. The jade sale in Naypyidaw, exclusively for Burmese nationals, is being held from Dec. 7-13, with more than 200 traders bidding to buy jade and gems lots over the course of the week. In the jade sale, 6,826 lots are on display and the first 1,000 were put up for auction on Thursday, according to Min Thu, assistant director of the Myanmar Gems Enterprise, under the Ministry of Mines. At the last emporium exclusively for local traders, in October 2014, the Myanmar Gems Enterprise and private enterprises offered 6,982 jade lots and sold 5,988. Tun Hla Aung, joint secretary of the Myanmar Gems and Jewelry Entrepreneurs Association, acknowledged that the jade market in 2015 was not as hot as previous years, but he insisted that the trade remained fundamentally strong.
Foreign wine imports to hit Myanmar’s shelves Myanmar Times 11th Dec 2015
Wine suppliers are distributing foreign brands into the local market legally for the first time after the Ministry of Commerce opened the door to imported wine earlier this year, though only a handful of companies have so far been licenced, industry sources said. U Tin Ye Win, a commerce ministry director in Nay Pyi Taw, said three or four companies have been granted licences, and several more are in the process of applying, but have not yet met all the requirements.
Defense & Security
US General Says Eager for Burma Engagement The Irrawaddy 9th Dec 2015
The US Army’s commander in Asia said on Tuesday he was eager for closer ties to the military in Burma after elections that the pro-democracy opposition won by a landslide, but this would have to wait for a policy decision by the US government. General Vincent Brooks told a defense writers’ roundtable in Washington that military leaders from Burma’s partners in the Association of Southeast Asian Nations were also eager to see such US engagement with Burma. He recalled a meeting with ASEAN defense ministers in 2014. “I literally had leaders from other militaries grabbing me by the hand and pulling me to the Burmese general who was there; the region really wants the United States to engage Burma and help them to move forward,” he said. “Now we have to move at the pace we are allowed to,” Brooks said. The United States has been working to boost military ties throughout Asia to counter an increasingly powerful and assertive China, which shares a border with Burma.
Economics
Myanmar faces high barriers to joining AEC: economists Myanmar Times 10th Dec 2015
The AEC vision is a globally integrated single market and production base in a highly competitive economic region, with equitable development. In theory, the economic bloc will lead to unlimited investment and trade opportunities between members. In practice, the barriers are high. Along with Cambodia and Laos, Myanmar has been granted an extension and will not join the AEC until 2018, but economists say even this target may be hard to meet. “It is true that we are struggling to prepare for the AEC,” economic adviser to the president U Zaw Oo told The Myanmar Times. “So we are stepping very carefully. We of course need to develop our economic infrastructure, but we must build it without leapfrogging.” In infrastructure development, a key driver of economic growth, Myanmar lags well behind other countries in the region, including Malaysia, Singapore and Thailand. Poor infrastructure is a major barrier to competitiveness. Myanmar is rated 145 out of 160 countries in the World Bank’s 2014 Logistics Performance Index – the lowest score in Asia. This will put it at a disadvantage once it joins the regional community.
Energy
PTTEP sells interest in another Myanmar onshore block Myanmar Times 15th Dec 2015
PTTEP South Asia sold its 10pc interest in onshore block MOGE-3 to Japanese Mitsui Oil Exploration (MOECO), the same company that bought a 10pc stake in PTTEP’s Myanmar onshore blocks PSC-G and EP-2 last April according to a company notice posted on the Stock Exchange of Thailand yesterday. The transaction has been approved by Myanmar authorities. The 1217 square kilometre block located in Magwe Region is now 75pc owned by PTTEP SA, 10pc by Thailand’s Palang Sophon Offshore, 10pc by MOECO and 5pc by local partner Win Precious Resources, the notice said. “The divestiture is part of PTTEP’s strategy in portfolio management aiming to add value and manage risk,” Somporn Vongvuthipornchai, chief executive officer of the company said in the notice. PTTEP SA was awarded the right to exploration and production of oil and gas in MOGE-3 in the government’s second onshore bidding round, in 2013. The Thai state-owned energy giant has adjusted its five-year investment plan to cope with fluctuations in the international oil price, which has fallen by more than 60pc since mid-2014.
Production-sharing contract for Yadana gas project to expire in 2020 Eleven 14th Dec 2015
The production-sharing contract for the Yadana natural gas project will expire in 2020, according to Mr Xavier Preel, the general manager of Total E&P Myanmar Co Ltd. The Yadana gas project has been operated by PTTEP, UNOCOL, Total and the Myanmar Oil and Gas Enterprise for 20 years. The project exports 800 million cubic feet of natural gas per day to Thailand, and under the production sharing contract, 200 million cubic feet of gas goes to local consumption daily. The annual production is equal to 800 billion cubic meters. Oil drilling rig exports 200 million cubic feet of gas to Yangon via Kanpauk and Mawlamyine, as well as directly to Yangon. The production-sharing contract will expire in 2020. It accounts for 50 per cent of the country’s energy consumption while, the remaining 50 per cent is from the Zawtika project, the Shwe gas pipeline and onshore blocks. Myanmar’s power demand has increased by 15 per cent annually due to the increasing number of factories and workshops and high population density. Between the 2011-2012 fiscal year and the 2014-2015 fiscal year, the government built nine hydropower plants with an installed capacity of 626 megawatts and ten gas-fired power plants with an installed capacity of 877.494 megawatts. In addition, the installation of 1354.93-mile-long power distribution lines and the extended building of the MVA 1454 sub-power station have been carried out.
Financial Services
Myanmar to grant new foreign banking licences in 2016 Reuters 16th Dec 2015
Myanmar will open a second roundof foreign bank licensing early next year, its central banksaid, in the hopes of attracting further foreign investment intoan economy emerging from five decades of military rule andisolation. Banks from countries that have already been granted licenses- Australia, Japan, Malaysia, China, Singapore, and Thailand -will not be eligible for the new licenses.
New foreign bank licences to be granted in 2016 Myanmar Times 15th Dec 2015
The aim is to licence banks from “additional neighbouring and important trading partner economies”, the Central Bank said. “The main objective of the second round of licensing is to further promote existing economic cooperation.” Foreign banks headquartered in countries that successfully obtained a licence in the first round – namely Australia, China, Japan, Malaysia, Singapore and Thailand – will not be allowed to participate in the second round, the notice said. Foreign banks with representative offices in Myanmar or which are in the process of obtaining one will be permitted to participate. The licence will be for onshore wholesale banking through a branch, and a call for expressions of interest will be made in early 2016, the Central Bank said. In the last, hotly-contested bidding round, nine foreign banks won licences on October 1 last year, and winners were given a year to prepare operations to meet the approval of the Central Bank.
Forex-starved lenders ask Central Bank for policy shift Myanmar Times 14th Dec 2015
Private financial institutions want the use of Nostro accounts — held in a foreign country and denominated in the currency of that country — to become mandatory for banks making import payments on behalf of clients, according to sources at private banks. The Yangon Foreign Exchange Market Committee submitted the policy request to the Central Bank at a meeting on December 7, said U Mya Than, the committee’s chair. Private banks no longer have sufficient foreign exchange reserves to facilitate import payments, he said. The central bank has yet to issue instructions on import payments, but is investigating the issue and will make an announcement soon, said one official with knowledge of the monetary authority’s plans. The central bank has been examining the volume of foreign exchange transactions across private and state banks since December 1, the official added.
Securities firms told to provide exchange capital Eleven 14th Dec 2015
Myanmar Security Exchange Supervisory Commission has instructed securities companies to contribute capital investment to the Yangon Stock Exchange by the end of December. Currently, the commission has picked up 10 securities companies. Preparations for the launch of the exchange are almost complete. There will be about five listed companies and 18 criteria for the listed company have come out. The commission has fixed the licence fees ranging between Ks30 million and Ks13 billion for the listed companies; Ks15 billion for an underwriter licence; Ks10 billion for a dealer licence and Ks7 billion for a broker licence and Ks30 million for a consultant licence. Securities companies which have got the green light from the commission will launch their services in December. Among the companies which applied for securities licences, applications for underwriter licences are the lowest as the capital investment is huge while the applications for adviser licences are the most numerous. The exchange is scheduled to open this month.
Yangon Stock Exchange to be opened to foreign investors next year Myanmar Times 10th Dec 2015
Print By Htin Linn Aung and Clare Hammond | Thursday, 10 December 2015 10 Yangon Stock Exchange will be opened to foreign investors when a new Myanmar Companies Act is passed next year, and local-foreign joint venture companies are also likely to be eligible to list under the new law, officials said at the launch of the bourse yesterday. Officials shake hands at the launch of the Yangon Stock Exchange. (Naing Wynn Htoon/The Myanmar Times)Officials shake hands at the launch of the Yangon Stock Exchange. (Naing Wynn Htoon/The Myanmar Times) A revision to the century-old law will open the market to foreign buyers and international joint-ventures, Myanmar Securities and Exchange Commission chair U Maung Maung Thein told media on the sidelines of yesterday’s event, although he did not provide details on whether foreign buyers would face restrictions. It is also unclear whether overseas investors will be able to buy shares in sectors off-limits to foreigners under Myanmar law, such as jade and gemstones, domestic financial institutions and land. The draft act is likely to be passed after the new National League for Democracy-led government takes office at the end of March. If it is passed early next year, foreign investors will not have lost much time – while the stock exchanged opened yesterday, the first trades will not take place until February or March.
Myanmar launches stock exchange Brunei Times 10th Dec 2015
Myanmar officially launched its first modern stock exchange yesterday, but without a single stock to trade, 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. Myanmar’s launch of a bourse of its own marks an ambitious new stage in efforts to ignite investment. Crowds gathered Wednesday outside the elegant newly restored colonial-era building in the heart of Yangon to witness the stock market’s official launch. But they were not listening for the toll of a trading bell because the exchange has yet to list a single firm.
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.
Food & Agriculture
Ministry to target paddy smugglers Myanmar Times 15th Dec 2015
In a meeting with four trade associations last week, U Win Myint said he was aware that rice, broken rice and paddy seed were being transported illegally across Myanmar’s porous borders, particularly at the Muse checkpoint in Shan State, adjoining China’s Yunnan province. “News is spreading that paddy is being smuggled across the border. The great number of vehicles passing through Muse makes it difficult to check them all, but people taking advantage of this to take paddy out of the country will be found and prosecuted,” U Win Myint said. “Since rice is the staple food in Myanmar, we need to take great care to store reserves. It is very important to protect against low yields and price hikes.” The El Nino weather pattern – associated with droughts and storms – is likely to gather momentum in the coming months, threatening crop production rates, the minister said. If unusually warm weather persists in Myanmar this winter, 2016 could be a fallow year for paddy.
FDI CHALLENGES REMAIN — Agriculture, livestock and fisheries fail to attract FDI this fiscal year The Global New Light of Myanmar 12th Dec 2015
Myanmar did not receive any foreign direct investment in the agriculture, livestock and fisheries sectors as of October in this fiscal year, according to the Directorate of Investment and Company Administration (DICA). Only $39.66 million in FDI went into the country’s agriculture sector in the last fiscal year, which was up from $20.269 million and $9.650 in the previous years. Likewise, FDI amounted to only $26.86 million in the livestock & fisheries sector last fiscal year, down from $96 million the year before. Since 1988, the approved amount of foreign capital in the two sectors has totaled just $700 million. The statistics show that meager foreign investments were seen in the two sectors throughout the past three fiscal years, while other sectors drew increased FDI inflows, topping $8.01 billion in total in the last fiscal year, up from $4.1 billion in the fiscal year of 2013-14 and $1.4 billion in the fiscal year of 2012-13. Despite failing to attract foreign investment in the two sectors, Myanmar’s total FDI target was set at $6 billion for the present fiscal year and it received FDI worth US $3.79 billion so far, said DICA.
Fertiliser and seawater threaten rice quality in the Ayeyarwady delta Myanmar Times 10th Dec 2015
As a result, soil quality in parts of Ayeyarwady Region has degraded, perhaps irreversibly. U Tun Line Oo, manager of the Agriculture Research Department in Myaungmya township, Ayeyarwady Region, said the problem started with the devastation wreaked by Cyclone Nargis in 2008. “In coastal townships like Bogale, Phyapon, Labutta and Ngaputaw, high-quality rice production decreased significantly because paddy dikes were broken, allowing salt seawater into the fields,” he said. Another factor was the loss of soil nutrients caused by the overuse of fertiliser, and the failure to adopt protective measures. Instead of diversifying their crops, and switching to beans and pulses for a season, farmers just use more fertiliser. “They use fertiliser in unlimited quantities. It makes the soil sourer,” said U Tun Line Oo, adding that such practices would result in soil degradation. Recovery could be difficult and even impossible.
Farmers protest KMA Group project in Taungoo Myanmar Times 9th Dec 2015
The Kaung Myanmar Aung company says it was granted government permission to cultivate the 960-hectare (2400-acre) plot at Nagar Mauk village, Taungoo township, Bago Region. The company, owned by U Khin Maung Aye, says it signed a 30-year contract with the Settlement and Land Records Department of the Ministry of Agriculture and Irrigation in 2009. U Saw Maung, deputy general manager of KMA, said at first farmers agreed to yield the land, but later changed their minds, opposing the company’s plan to collaborate with Asia World Group to plant teak. At a press conference at Taungoo’s Myanmar Medical Association Hall on December 4, Myanmar Farmers’ Development Party head U Kyaw Soe Moe said, “Some of the land is owned by farmers and we will try to negotiate with KMA regarding all of the land.” He said about 360 farmers, who owned about 3273 acres, had accepted KMA’s terms to plant teak.
Myanmar’s Agriculture Sector: Unlocking the Potential for Inclusive Growth Asian Development Bank 15th Dec 2015
Myanmar’s agriculture sector offers substantial unexploited potential to underpin the country’s inclusive economic development. With extensive land, water, and labor resources, as well as proximity to fast-growing markets, the country’s agriculture has key competitive advantages.
Health & Life Sciences
Myanmar confirms two circulating vaccine-derived poliovirus cases Outbreak News Today 13th Dec 2015
In a follow-up to a report two weeks ago, two cases of circulating vaccine-derived poliovirus were confirmed in Myanmar this past week, according to the Global Polio Eradication Initiative (GPEI). The most recent reported case in the outbreak of type 2 circulating vaccine-derived poliovirus (cVDPV) was isolated from a 15-month old child in Rakhine, with onset of paralysis on 15 October. The Ministry of Health of Myanmar is being supported by WHO and partners of the GPEI in planning and implementing an urgent outbreak response. Significant immunization gaps remain in Myanmar, with an estimated 24% of children un- or under-immunized.
ICT
Race for Myanmar's low-cost IT engineers just getting started Nikkei Asian Review 15th Dec 2015
Competition to recruit IT engineers in Myanmar is heating up as labor costs in China and Vietnam keep rising. Japanese companies are leading the push. Hitachi has tied up with Myanmar's leading science and engineering university to foster new talent, while NTT Data plans to increase its number of local engineers by 2.5 times in three years. Chinese and especially American information technology companies, which have high hopes for Myanmar's continuing democratization, are also entering the country.Hitachi said Monday it has established a laboratory at the University of Information Technology, Yangon, to nurture Myanmar's next generation of IT leaders. The Japanese company plans to hold four two-week IT courses a year, sending engineers from Japan to teach UIT professors and students how to manage computer systems and utilize big data. The courses will use personal computers and servers donated by Hitachi. The company expects to teach a total of around 400 people over five years and plans to hire suitable graduates for work in the construction of IT infrastructure, the core of Hitachi's operations in Myanmar. Myanmar has "strong human-resource potential" due to its low labor costs and the high academic ability of its workers, Kaichiro Sakuma, a senior vice president at Hitachi, said at a press conference in Yangon on Monday. "We would like to use these workers at our group's main bases of operation across Southeast Asia."
Myanmar calls EOI for fourth telecoms operator Myanmar Times 15th Dec 2015
Companies will apply to join a local consortium of 11 local firms and investors, and a state partner, according to an EOI document seen by The Myanmar Times. The fourth operator will be majority locally owned. EOIs are expected no later than 5pm on December 18, the document said. Consultant Roland Berger will help the tender selection committee to choose the foreign partner, after signing an agreement on December 9. The German company managed the government’s last international telecoms tender, a hotly-contested race for two licences, which were granted to Norway’s Telenor and Qatar’s Ooredoo. The country’s third operator is state-owned Myanma Posts and Telecommunications.
Infrastructure
Demand for power up 15%: minister Eleven 15th Dec 2015
The country’s demand for power has increased by 15 per cent annually due to the increasing number of factories and workshops and high population density, Khin Maung Soe, union minister for electric power says. Between the 2011-12 financial year and 2014-15, the ministry built nine hydropower plants with an installed capacity of 626 megawatts and 10 gas-fired power plants with an installed capacity of 877 megawatts. In addition, the installation of 1,350 miles of power lines and 1,454 sub-power stations have been completed. A total of 3.5 million households in 398 towns and 29,300 villages have access to electricity, according to the ministry. Nationwide power consumption has reached 11,407 million kilowatt hours while individual power consumption per year is 222 kilowatt hours, it claims. Power generation from hydropower projects and gas-fired power plants amounted to more than 3,000 megawatts, according to the ministry. An official from the ministry said: “Now we can generate more than 3,000 megawatts from hydropower projects and gas-fired power plants. According to the installed capacity of hydropower projects, they can generate more than 4,000 megawatts. All hydropower plant could not operate at its full capacity. We need further 500 megawatts to fully supply demand.” Power distribution from the national grid is 33 per cent. Plans are under way to increase it to 50 per cent. The country’s power demand increased by 13-15 per cent each year. The ministry still needs to extend its power generation to rural areas.
Yangon tram to run next year Eleven 15th Dec 2015
A tram will start operating in downtown yangon next year after a two-decade hiatus. The authorities have run four successful tests on the tram since the plan to replace local trains with trams was approved last year December, according to Kyaw Soe Lwin, the manager of the Ministry of Rail Transportation. The Japan International Cooperation Agency has provided technical aid for the project, which will cost over US$6 million. The route spans more than six miles, connecting downtown from Pazundaung Township to the uptown area of Htawligwae. Cables for the tram have yet to be assembled, and the route is expected to open in January. The tram was in use during the colonial era and banned by the State Law and Order Restoration Council government in 1994.
Second economic zone planned for 2016 Eleven 14th Dec 2015
A second central economic zone project (the Mindhamma project) will be implemented in Yangon in 2016, according to Yangon City Development Committee. Experts pointed out that the central economic zone should be separated from the city due to the population density and traffic jams in Yangon. The project will be built on a 37-acre site at the corner of Mindhamma road and Tawwin road in Mayangon Township. A tender for land rental was invited to domestic, foreign and joint-venture companies in late 2013. There was a delay in the tender process although the project was intended to launch in 2014. The First Myanmar Construction Co has won the tender for the project.
New Urban Development Plan to Include 100,000 Acres of Land Myanmar Business Today 14th Dec 2015
Over 100,000 acres of land may be included in an urban development plan of Yangon, said Dr Toe Aung, director of Urban Planning Division (UPD) of the Yangon City Development Committee (YCDC). The YCDC has researched many areas in Yangon region for the urban plan. The selected areas and lands are not the same as the areas described in the Yangon Master Plan, which was jointly drawn by YCDC and Japan International Cooperation Agency (JICA) in 2012-13. “We went to many townships and met with local people. Then we listened to their ideas and opinions about which areas will be suitable for urban growth. We will consider their needs in our plan,” Dr Toe Aung said. A total of 118,732 acres of land from Hlegu, Dala, Hmawbi, Htantapin, Thanlyin and East Dagon townships have been planned for inclusion in the urban plan, according to YCDC. The details of the plan have been submitted to the Yangon region parliament and the regional government has approved the plan. The implementation of the urban plan will depend on the regional government’s budgets, said Dr Toe Aung.
Thilawa SEZ to create 200,000 jobs Eleven 14th Dec 2015
Thilawa Special Economic Zone, which is jointly implemented by Myanmar and Japan, will create about 200,000 jobs when it is in full operation, according to the Myanmar-Japan Thilawa Development Ltd. Myint Zaw, general manager from Myanmar-Japan Thilawa Development Ltd, said: "Zone A of the SEZ is under implementation and can create about 40,000 jobs. The project can create about 200,000 jobs when the 2,400-hectare SEZ project is completed. Zone A employs between 3,000 and 5,000 workers. “One phase of zone A includes residential and commercial areas. Labourers can stay there. Basic infrastructure for residents will include worker accommodation,” he added. Thilawa is implemented with a 51 per cent stake by Myanmar and 49 per cent stake from Japan.
Climate initiatives must not include large hydropower projects – NGOs mizzima 9th Dec 2015
In a global manifesto released on the 3 December, a coalition of more than 300 civil society organizations from 53 countries called on governments and financiers at the Paris climate talks to keep large hydropower projects out of climate initiatives such as the Clean Development Mechanism, the World Bank’s Climate Investment Funds, and green bonds. Large hydropower projects emit massive amounts of methane, make water and energy systems more vulnerable to climate change, and cause severe damage to critical ecosystems and local communities. Including them in climate initiatives crowds out support for true climate solutions such as wind and solar power, which have become readily available, can be built more quickly than large dams and have a smaller social and environmental footprint, according to the coalition statement. “Particularly in tropical regions, hydropower reservoirs emit significant amounts of greenhouse gases, comparable to the climate impact of the aviation sector”, said Peter Bosshard, interim Executive Director of International Rivers. “For environmental, social and economic reasons, large hydropower projects are a false solution to climate change.” “Large hydropower projects have serious impacts on local communities and often violate the rights of indigenous peoples to their lands, cultural integrity and free, prior informed consent”, said Joan Carling, Secretary General of the Asia Indigenous Peoples Pact (AIPP). “The resistance of dam-affected communities has often been met with egregious human rights violations.”
Manufacturing
Myanmar garments to get US boost The Nation 14th Dec 2015
Aung Thein, vice president of the Myanmar Industries Association and managing director of Nibban Electronics, welcomed the move, saying it would boost exports to the US and strengthen local industries. Garment factories would reap the most from the decision, he said. "For the time being, some well-known brands like H&M have been making some of their items in Myanmar. As the restrictions are eased, local businesses will get a chance to produce more value-added products and can export them to the US," he said. He expected garment factories to be the main beneficiaries, as they are the biggest victims of the US sanctions. "The sanctions hurt the grassroots a lot. When the US started imposing sanctions on Myanmar, some of the garment factories here had to stop working. As a result, a lot of garment workers, mostly female, lost their jobs and faced many difficulties for their survival. So, I believe SMEs [small and medium-sized enterprises] will benefit a lot from this temporary easing of sanctions," Aung Thein said.
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