May 29-June 4, 2014

Myanmar Business Today

mmbiztoday.com
mmbiztoday.com May 29-June 4, 2014| Vol 2, Issue 21 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Inside MBT
ExpuL ExperIences In Yungon:
TIe WIId, WIId EusL P-;
mpucL nvesLIng und EnLre-
preneurship Can Help Take
Myunmur Lo TIe NexL eveI
P-z1
Yungon HoLeI MurkeL SeL Ior An-
oLIer Record Yeur: ReporL P-z
SMEs Not Ready to Survive AEC
May Soe San &
Wai Linn Kyaw
T
he small and me-
dium enterprises
(SMEs) oI Myun-
mur ure sLIII Loo weuk
Lo Iock Iorns wILI LIeIr
ASEAN counLerpurLs und
mIgIL hnd LIemseIves ouL
oI depLI wIen LIe ASEAN
Economic Community
(AEC) comes InLo Iorce In
zo1, busInesspeopIe und
industry insiders say.
TIe AEC envIsIons Iree
movemenL oI goods, ser-
vIces, InvesLmenL, skIIIed
labour and capital across
SouLIeusL AsIu. As LIe re-
gional bloc gets closer to
ImpIemenLIng AEC, SMEs
Irom especIuIIy TIuIIund
and Malaysia are eyeing
Myunmur us u IucruLIve
venue Ior cIeup Iubour
und Iow producLIon cosL.
However, SMEs In My-
anmar are still struggling
wILI LIe Iuck oI skIIIed Iu-
bour, deurLI oI Iunds und
LecInIcuI consLruInLs, en-
trepreneurs say.
L Is noL eusy Ior IocuI
SMEs Lo compeLe once
LIe AEC comes InLo eecL.
WILI LIe governmenL`s
ussIsLunce beIng so IILLIe,
survIvuI wouId be Impos-
sIbIe, U KIuIng MyInL,
generuI secreLury oI My-
anmar Rubber Plantation
and Producers Associa-
LIon, LoId Myanmar Busi-
ness Today.
As LIere ure onIy seven
monLIs IeIL Lo prepure
Ior LIe AEC, IocuI SMEs
are trying hard to operate
und deveIop LIemseIves
on LIeIr own, buL reeIIng
Irom InudequuLe hnunc-
Ing, crumbIIng InIrusLruc-
Lure und un underdeveI-
oped murkeL, Ie suId.
Myunmur doesn`L even
Iuve uny Iuws LIuL couId
proLecL our SMEs wIen
our neighbouring coun-
LrIes enLer |Iere|, suId
U Aye wIn, joInL secre-
Lury oI UnIon oI Myunmur
ederuLIon oI CIumbers
oI Commerce und ndus-
Lry (UMCC).
AILer LIe ASEAN Ieud-
ers agreed to establish
AEC-zo1 In zoo;, IocuI
enLrepreneurs und gov-
ernmenL om cIuIs uLLend-
ed numerous economic
semInurs, meeLIngs und
Iorums IncIudIng LIe
ASEAN EconomIc o-
rums. BuL LIe IocuI SMEs
sLIII Iuck udequuLe knowI-
edge, und Insum cIenL
Iunds Irom LIe govern-
menL Is uggruvuLIng LIe
sILuuLIon, U Aye wIn
added.
Entrepreneurs blamed
governmenL`s IncupubIIILy
Lo gIve proper ussIsLunce
Lo SMEs us LIe muIn cIuI-
Ienge Ior LIem und suId
the current state-run
SME CenLre Is noL eec-
LIve Ior LIe IocuI SMEs.
There are still many
obsLucIes wIIIe LukIng
Iouns Irom LIe sLuLe-run
SmuII & MedIum ndus-
LrIuI DeveIopmenL Bunk
(SMDB), LIey suId, wIere
SMEs need Lo go LIrougI
numerous complex stages
Lo geL Iouns. Moreover,
SMDB uIso receIves IIm-
ILed umounL oI IundIng
Irom LIe governmenL,
mukIng IL dIm cuIL Ior LIe
SMEs Lo survIve.
TIe DIrecLor-GeneruI oI
TIuIIund`s Om ce oI SmuII
and Medium Enterprises
Promotion Patima Jeera-
pueL suId In TIuI govern-
menL websILe LIuL LIere
ure currenLIy z.;q mII-
IIon SMEs, uccounLIng Ior
q8. percenL oI uII enLer-
prises in Thailand. They
generuLe empIoymenL Ior
11.;8 mIIIIon peopIe, rep-
resenLIng 8o.q percenL oI
the countrys total em-
ployment.
TIe TIuIIund SME
DeveIopmenL Bunk
(SMEDB), wIIcI bInds
z uIIIunces Ior IeIpIng
TIuI SMEs, dIsLrIbuLed
THB6,;;8 mIIIIon ($z11
million) in loans in the
hrsL quurLer oI zo1. On
LIe oLIer Iund, SMDB
dIsbursed onIy K1o bIIIIon
($1o.q mIIIIon) In Iouns In
zo1-1q hscuI. TIere ure
over 6q,ooo regIsLered
SMEs In Myunmur, wIIIe
LIe number oI unregIs-
Lered SMEs Is esLImuLed
uL 6z,ooo.
~~ ...~ .~~..
._ ~:. e . .. :..q.~. ~
~~, . AEC ~:. .~ ~ . .
._ ~. , ~ _., .:. . ~...
.:..~.~.:..~...,.
.:.~.,_e ~:.e..:..
..,..:..e_.q,~.,
~. .~:.,_ ..,...._ e
~..~..:.. ._:q.:.
~ .....~q._.
~:. e . .. :..q.~. ~ ~~, .
AEC.~ ~ . ..~: ._ ~. ,
~ _._ ~ .SMEs..,..:.
._ ~ e ,_.~ e e,_e._
.~ .~q._.
Women work at a lotus silk weaving factory on Inle Lake in Shan
state. Myanmar's small and medium enterprises are still too weak to
compete against their formidable rivals from bigger Southeast Asian
economies, say businesspeople and industry experts.
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
2
LOCAL BIZ
Business News in Brief
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Board of Editors
Editor-in-Chief - Sherpa Hossainy
Email - sherpa.hossainy@gmail.com
Ph - 09 42 110 8150
Editor-in-Charge - Wai Linn Kyaw
Email - linnkhant18@gmail.com
Ph - 09 40 157 9090
Reporters & Contributors
Htun Htun Minn, May Soe San, Phyu Thit Lwin, Kyaw Min,
Aye Myat, David Mayes, Kyaw Myo Htoon, Wai Linn Kyaw,
Sherpa Hossainy, Jonathan Harvey, Stephen Seng
Art & Design
Zarni Min Naing (Circle)
Email - zarni.circle@gmail.com
Ph - 09 7310 5793
Ko Naing
Email - nzlinn.13@gmail.com
Ph - 09 730 38114
DTP
May Su Hlaing
Translators
Wai Linn Kyaw, Phyu Maung,
Bone Pyae Sone
Advertising
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Advertising Hotline - 09 420 237 625, 09 4211 567 05,
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pkajorn@hotmail.com
09421149720
Publisher
U Myo Oo (04622)
No. 1A-3, Myintha 11
th
Street,
South Okkalapa Township, Yangon.
Tel: 951-850 0763,
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Printing
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09 4211 30133
Agri loons of $1h to he dishursed this pscol geor
SLuLe-owned Myunmu EconomIc Bunk (MEB) wIII dIs-
burse Kq8.8 bIIIIon ($1.oz bIIIIon) ugrIcuILure Iouns
LIIs hnuncIuI yeur wIIcI sLurLed on AprII 1, compured
wILI K1,16.1 bIIIIon In LIe prevIous yeur, sLuLe-run me-
dIu reporLed. Myunmu AgrIcuILuruI DeveIopmenL Bunk
used Lo IundIe ugrIcuILuruI Iouns, buL MEB Ius sLurLed
IssuIng sucI Iouns sInce IusL hscuI, becomIng LIe onIy
governmenL-run bunk LIuL Issues ugrI-Iouns. TIe un-
nuuI InLeresL ruLe Ior LIIs yeur`s Iouns wIII be percenL,
down Irom 8. percenL In LIe prevIous yeur.
Mgonmo Airuogs inks ATR deol
SLuLe-owned Myunmu AIrwuys recenLIy sIgned u
Memorundum oI UndersLundIng wILI rencI uvIuLIon
gIunL ATR Co Lo buy sIx new ATR ;z-6oo uIrcruIL und Lo
consLrucL u worksIop Ior mujor uIrcruIL repuIrs uL Yun-
gon nLernuLIonuI AIrporL, IocuI medIu reporLed munug-
Ing dIrecLor TIun Tun us suyIng. Myunmu AIrwuys cur-
renLIy Ies beLween z6 domesLIc desLInuLIons wILI nIne
uIrcruIL, IncIudIng Iour ATRs. TIe worksIop wIII uIso
oer servIces Lo ATR uIrcruIL beIng operuLed by oLIer
IocuI uIrIInes, TIun Tun udded.
Mgonmor to get $;oom from Chino
CooperuLIves mInIsLer Kyuw Hsun suId IIs mInIsLry
wouId obLuIn u $;oo mIIIIon Ioun Irom CIInu`s ExporL-
mporL Bunk Lo provIde smuII Iouns Lo LIe generuI pub-
IIc, IocuI medIu reporLed. TIe mInIsLry Ius uLLrucLed
crILIcIsm Ior cIurgIng IIgI InLeresL on LIe smuII Iouns
IL eurIIer provIded uILer obLuInIng u $1oo mIIIIon soIL
Ioun Irom CIInu.
Mgonmor-Chino horder trode hits $zoS mil-
li on
Myunmur-CIInu border Lrude Ius reucIed $z68 mII-
IIon In LIe currenL hscuI wIIcI sLurLed AprII 1, uccord-
Ing Lo LIe MInIsLry oI Commerce duLu. TIe Muse border
poInL uIong LIe border eurned $z1 mIIIIon, IoIIowed
by CIInsIweIuI ($zq mIIIIon), KunpILeLee ($; mIIIIon)
und weIjeI ($ mIIIIon). Myunmur Ius 1q border cumps
runnIng Lrude wILI BungIudesI, CIInu, ndIu und TIuI-
land. More border checkpoints are expected to be open
soon. n zo1-1q, Myunmur`s LoLuI border Lrude umounL
wus $q. bIIIIon.
1nternet users crosses z.o million
More LIun z.6 mIIIIon peopIe ure now usIng InLerneL,
according to Myanma Posts and Telecommunications
(MPT). Over 1.8 mIIIIon oI LIem ure usIng GSM mobIIe
neLworks. MPT suId pIone InLerneL users ure IncreusIng
uL u ruLe oI ;o,ooo Lo 8o,ooo per monLI becuuse oI ILs
new InLerneL-enubIed SM curds. MPT suId 1oo,ooo us-
ers uccess InLerneL LIrougI WCDMA neLwork, o,ooo
LIrougI CDMA8oo und o,ooo LIrougI CDMA8oo
(MECTel).
Suitzerlond to hoost oid to Mgonmor
SwILzerIund Ius pIedged Lo be u consLrucLIve purLner
wILI Myunmur, IuuncIIng progrums Lo IeIp Myunmur
reduce poverLy und supporL ILs democruLIsuLIon pro-
cess. SpeukIng Lo LIe sLuLe medIu SwILzerIund`s hrsL
resIdenL Ambussudor CIrIsLopI Buegener IusL week
expressed IIs counLry`s wIIIIngness Lo be u consLruc-
LIve purLner Ior Myunmur`s governmenL, purIIumenL,
cIvII socIeLy und uII poIILIcuI purLIes In LIe counLry. TIe
SwIss envoy promIsed Lo IeIp Myunmur governmenL
reduce poverLy, especIuIIy In ruruI ureus, InvoIvIng In
secLors oI vocuLIonuI skIII deveIopmenL, ugrIcuILure und
Iood securILy, IeuILI und socIuI InIrusLrucLures und Io-
cuI governunce. n November zo1z, SwILzerIund opened
its embassy in Yangon.
Yangon ai r por ts upgr ade appr oved
TIe governmenL Ius gIven LIe go-uIeud Lo upgrude
Yungon nLernuLIonuI AIrporL, Lo boosL ILs unnuuI cu-
pucILy Irom z.; mIIIIon pussengers Lo 6 mIIIIon, uccord-
Ing Lo LIe DepurLmenL oI CIvII AvIuLIon. An economIc
commILLee cIuIred by PresIdenL U TIeIn SeIn recenLIy
upproved LIe upgrude. AccordIng Lo LIe upgrude pIun,
LIe IocuI urrIvuIJdepurLure buIIdIng oI LIe uIrporL wIII
be demoIIsIed und u new buIIdIng wIII be buIIL In LIe
nexL 18 monLIs. TIe uIrporL`s Ionorury IuII wIII be used
Ior LIe domesLIc LermInuI durIng LIe consLrucLIon perI-
od. TIe InLernuLIonuI urrIvuIJdepurLure buIIdIng oI LIe
uIrporL wIII remuIn uncIunged. TIe PIoneer Aerodrome
ServIces, u subsIdIury oI IocuI congIomeruLe AsIu WorId,
wus seIecLed Ior LIe projecL.
Myanmar Summary
~..q. _.,.:...:..q.~~.,_e -_.. ~ q~..~~:
.~...q..... ~. , ... .e ~..q~,..'.:
~ ... ~ .e, ~....__e.._~:. .q._. ~..|
~~.,_e e...~ ~. ~~' ... ~ .e~....
_.._e._.. e.~ _.,.:.~...q.e_e.~.~~.~. ~:~,e
......_.._e.._.
~..q. _.,.:..._~:...~.,_e ATR 72-600 ~..
~.:. ..e: ._.:~ . .~e e q, . q, ~ , ~_._ _._ . q:... .
~ ..e:_._..q.~..,~_..:~.q.~~~ ,:.._.
.:.,.:.~.~.q...._~:. .q._.
..~|e.~,_~. ..~:.,.~.,_e _._..:.~:. ~....:.
.....:. .:~.....q,~~~~~~ ~,_~._:,~.,_e
~,~. Export-Import Bank . ~..q~,..'.: .,. ~~
qe.__e.._~:. ~..q.~..:~.e:_.:.._.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
3
LOCAL BIZ
Govt to Privatise Jet Fuel Distribution System
T
he Myanma Pe-
troleum Products
Enterprise (MPPE)
Ius InvILed IoreIgn com-
punIes Lo Iorm u joInL
venLure Lo Improve ILs jeL
IueI dIsLrIbuLIon sysLem,
LIe sLuLe-owned compuny
said.
MPPE, wIIcI Is respon-
sIbIe Ior curryIng ouL LIe
reLuII und wIoIesuIe dIs-
LrIbuLIon oI peLroIeum
products under the Min-
IsLry oI Energy (MOE),
InvILed ExpressIon oI
nLeresL (Eo) Irom In-
LeresLed purLIes Ior suIes
und dIsLrIbuLIon oI jeL IueI
LIrougI u newspuper un-
nouncement.
The applicants must
Iuve experIence In dIs-
LrIbuLIng jeL IueI Lo uL
least three international
uIrporLs In LIree dIerenL
counLrIes, LIe unnounce-
ment said.
n order Lo beLLer serve
customers in the importa-
LIon, sLoruge, dIsLrIbuLIon
und suIes oI jeL IueI In My-
anmars airports and to
May Soe San
Improve LIe munugemenL
oI LIe busIness wIIIe
conducLIng envIronmen-
LuIIy IrIendIy operuLIons,
LIe governmenL und LIe
MPPE are seeking an ex-
perIenced purLner Lo Iorm
u joInL venLure, MPPE
said.
The MPPE is currently
dIsLrIbuLIng ubouL 1z;
mIIIIon IILres oI jeL IueI u
yeur uL 11 uIrporLs uround
Myunmur, IncIudIng Yun-
gon, MunduIuy und Nuy
PyI Tuw. However, LIe
Lender Ius been cuIIed Ior
onIy Yungon nLernuLIon-
al Airport.
TIe Lender Is onIy Ior
Mingalardon Airport
|Yungon nLernuLIonuI
AIrporL|. TIere wIII be no
IurLIer Lenders, we wIII
try to expand our part-
nersIIp wILI LIe exIsLIng
compuny Ior LIe remuIn-
Ing uIrporLs, U MyInL
TIn, depuLy dIrecLor gen-
eruI oI MPPE, LoId Myan-
mar Business Today.
MPPE said the purpose
oI LIe IuLure joInL venLure
company is to operate
und Improve LIe enLer-
prIse`s busIness ucLIvILy.
AL u IuLer sLuge, nego-
LIuLIons wIII be opened
wILI LIe MPPE Lo expund
LIe joInL venLure Lo LIe
remuInIng 1o uIrporLs,
MPPE said.
nLeresLed IoreIgn com-
panies can submit the
IeLLer oI Eo LogeLIer
wILI u compIeLed Pre-
QuuIIhcuLIon AppIIcuLIon
Iorm (posLed on MOE`s
websILe: ILLp:JJwww.en-
ergy.gov.mm) uIong wILI
LIe IoIIowIng documenLs
endorsed by Myanmar
embassy in the respec-
LIve counLry: cerLIhcuLe oI
IncorporuLIon, memorun-
dum oI ussocIuLIon, urLI-
cIes oI ussocIuLIon, com-
puny prohIe und hnuncIuI
sLuLemenLs Ior IusL LIree
years.
The application has to be
senL Lo: MunugIng DIrecLor,
Myanma Petroleum Prod-
ucLs EnLerprIse, MInIsLry
oI Energy, Om ce No.6, Nuy
Myanmar Summary
S
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/
R
e
u
t
e
r
s
_., .: .q, ~ . . .q.. . , .
MPPE ~.,_e . _.:.~ . ~
.:.~:. ,.-..e._e,_e.
.q.. . , .~:._. ~ q, ~~ ~
~ .|..'e :.._~: . ._~_:
.._.
. ..~ ~, _~ ._:,.~ .~:~ q
.q, . .:~ . .~ . .~ ~:.
_e, _e..q: ......,._ ~. .|
. . , .~.,_e ..e: . .:.
.q: . . _ e, _ e . q, ~~ ~
Expression of Interest (EoI)
~:. ~. .q. .~ ..:.:..
~.. ~.|..'e._.._e.
._.
MPPE ~.,_e .~q~
..e:. .~: ~ .,.
~:. .,_._ .~: .. ... q, ~ ,
~.|~~ _.,.:.~.~....
q .... ~~ .. ..._e,_e.
....~q._.. ..: .~q
~.|._ q,~,~_.__._
. q:... . ~~ ~ .:_ e.
._~:. .q._.
PyI Tuw, by 16:o on June
16, uL LIe IuLesL, by Iund,
MPPE said.
Engineers work on a plane in a hangar at Yangon International airport in Yangon. The Myanma Petro-
Ieum Products Enterprise (MPPE) has invited foreign rms to form a joint venture to improve its jet fueI
distribution system, the state-owned rm announced.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
Myanmar Summary
Rice Millers Seek Hi-tech Assistance from Govt
E
xporLs oI -percenL bro-
ken rIce Iuve been weuk
becuuse oI Myunmur gov-
ernmenL`s IeebIe ussIsLunce Lo
smuII, prIvuLe rIce mIIIers, U
WIn KIuIng Soe, cIuIrmun oI
RIce MIIIers` AssocIuLIon oI uy
MyuL Hnur LownsIIp oI Ayeyur-
wuddy regIon, suId.
He told Myanmar Business
Today LIuL prIvuLe rIce mIIIers
ure In need oI governmenL uId
to buy rice polishers and colour
sorLer mucIInes, wIIcI ure es-
senLIuI Lo produce IIgI-grude,
-percenL broken rIce und ure
expensIve, buL Iunds Iuve been
slim.
DurIng my perIod oI cIuIr-
munsIIp, LIere wus no gov-
ernmenL supporL Ior us Lo go
II-LecI, Ie suId. As LIe gov-
ernment prioritises rice export
muny smuII-sIzed rIce mIIIers
Iuve now LIreuLened Lo sus-
pend their operations due to a
Iuck oI supporL.
Broken rIce Is u grude oI rIce
consIsLIng oI gruIns broken In
LIe mIIIIng process - LIe Iower
LIe percenLuge oI broken gruIns
the higher price the rice can
IeLcI In LIe murkeL.
MosL oI LIe -percenL broken
(IocuIIy known us Tann Myint)
rice produced in Myanmar are
exporLed Lo Europe und Jupun,
wIIIe z-percenL broken rIce
(IocuIIy known us Ae Ma Hta)
ure exporLed Lo AIrIcu. TIere
ure muny vurIeLIes oI rIce pro-
duced In Myunmur, Iowever,
they usually dont get high price
in the global market as they are
not polished during the milling
process.
U WIn KIuIng Soe suId some
Iurmers Iuve even been Iorced
to stop operating their rice mills
becuuse oI LIe IuIIIng rIce prIc-
es.
May Soe San TIey ure smuII Iurmers und
they cant operate the mills
wIen LIe murkeL Is down. n
our LownsIIp, onIy zo mIIIs ouL
oI qo ure operuLIonuI now.
Ko Soe KIuIng, u Iurmer Irom
LIe LownsIIp, suId LIe recenL
electricity price hike has also hit
LIe Iurmers Iurd In ruruI ureus.
PrevIousIy, mIIIIng cosL Ior u
buskeL oI rIce gruIns wus ubouL
K1oo. BuL uILer LIe governmenL
increased the electricity price
on AprII 1, LIe cosL IIked Lo
K1o-Kzoo. TIe Iurmers wIo
wunL Lo mIII LIeIr rIce gruIns ure
now IucIng dImcuILIes, Ie suId.
MosL oI LIe mIIIs In Myunmur
ure oId und mIIIs IuvIng coIour
sorters and dryer machines are
Iew In numbers. n LIe wIoIe
Ayeyurwuddy regIon, LIere ure
onIy u Iew IIgI-LecI mIIIs, U
KIuIng Soe suId.
CurrenLIy, LIere ure u LoLuI oI
z,ooo reguIur mIIIs In Myun-
mur LIuL cun produce beLween
1 und 1oo Lonnes oI rIce, buL
LIe number oI IIgI-LecI mIIIs,
wIIcI cun produce 1oo Lo qoo
Lonnes, Is Iess LIun 1oo.
However, u senIor omcIuI Irom
LIe MInIsLry oI Commerce LoId
Myanmar Business Today that
LIe number oI IIgI-LecI mIII-
ers in Myanmar may be small
buL mosL oI LIem onIy produce
z-percenL broken rIce.
Millers said the cost to pro-
duce -percenL broken rIce Is
Loo IIgI, so some smuII-sIzed
mIIIs Iuve suspended II-LecI
operations.
TIe number oI Tann My-
int mIIIs Is Iow buL some com-
panies are planning to build
LIem, suId U TIuung WIn,
generuI secreLury oI Myunmur
Rice Millers Association. Myan-
mar Agribusiness Public Corp
(MAPCO) is currently carrying
ouL u mIII consLrucLIon projecL
In Nuy PyI Tuw wIIcI Is expecL-
ed Lo be hnIsIed wILIIn one or
Lwo yeurs, Ie suId.
usL Yeur, MAPCO und Ju-
pun`s MILsuI Co Iormed u joInL
venLure Lo exporL ,ooo Lonnes
oI -percenL broken rIce Irom
Myunmur Lo Jupun. On Muy z,
the companies exported a sec-
ond IoL oI 6,ooo Lonnes.
oIIowIng LIe Iupse oI WesL-
ern suncLIons, LIe demund Ior
-percenL broken rIce Irom My-
unmur Ius been on LIe up, buL
LIe IIgI-LecI IucLorIes cun onIy
be Iound In Yungon, Myuung
Myu LownsIIp In Ayeyurwuddy
regIon und PuundLe In Bugo re-
gion.
_.,.:.. _._....~~. .,
~.q:~ ~q_~..._.~,._.
., ~ . . . ~:.,_ .q_. .. : ., .~
.:.~ ~._.. . ~. ..:~~ ~_ .:.
~ ~..q~. ....~:.,_..,_..
._~:_e.._~:. -q:~~~....
_~ . ....~.:_.,e.,.~..,.
~. .~_ .~....~ ._.:._.
., .~ .:.~ . ~. .,._ ~._..
~.~ .:.. : Wash Polisher, Colour
Soda .~.:. ._.:..~..q,
. , .q:. . ~ , ~.q ~ .:.q ..:._~:
~..q. ~~~_.:.~ ..:.
.~ q ..: ._ . e., ~. , ~
~.:~~.qq.~:.,_..,._~:.
,.~ ._.:._.
-q:~~~.~.~....: ~,.
_. ., .~ . . .q ..~, .~: ~ ...
.~.:_.,e.:.~: ~.,~~e
._ .~ . ~ ., .~ e ~. ..q
~ . ~.. ~ ..:~. ._.~
. .~: ~e . :._ ~: . . .~:
.e ..:..~ . .~ _ e. ~ ~~ ~
..|... .~ q . . , ...~: .q
~ ~ , ~ . ~ . q~ ~~ ~ .._ .~
. _~.~: ..~, .~: ~ _.~~..
~...:~ ~..q~ ......~:._.
.q .. ., .~ ._ .~ ._ _e. ..
.._ .~ ._ _e. .. ~. , . ...:
...e._. .....q.''e .,.~
..,.q~..~_ .~....~
._.:._.
~_. ,e ....:.~ q ..: .,
.~ e .:.-~._.. _..,:.:.~,~ .|~|
. ~:qq . ._ ._ . ~.~ ~. ~. .
_e. .,._~: . e. . . -_. ~ q~ . .~
_. ~:..:. ~ ._. .~:~ . _. .._~:
.,_~~.._.~:..:..: e.
~ ..|.~.~.. .~. ~~~ q.
q:. e.~.| ~~ . ~~ ~..
.q:~q.:_. . ~ , ~.q ~ .:. _. ~~
.:._ ~~ ~ ., .~ .:.q q:. .:
.q:~ . .q .~: _~ .. ..: q ~
.,q._ e .~:..e..:._e..
~...~ ._.:._.
~,._..,~.. ~ _.,.:...:..q.
~.:.. .~: . .q.q . Mapco. .,
....q~....|.__...._..~
., ~, . , ~~~., ~ ~ . . . ._ .
A boy works at a local mill in Kyaiklat town. Myanmar government is not doing enough to provide
hi-tech assistance to small, private rice millers, millers said.
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
Thilawa Leasehold Rights Go on Sale
T
Ie suIe oI Ieuse-
IoId rIgILs Ior op-
eruLIons In TIIIuwu
SpecIuI EconomIc Zone
(SEZ) Ius commenced
IusL week, u Jupunese con-
sortium said.
TIe rIgILs wIII be gIven
Ior u perIod oI o yeurs
wILI un opLIonuI exLen-
sIon oI z yeurs, LIe con-
sorLIum, wIIcI Is mude
up oI MILsubIsII Corp,
MurubenI Corp und Su-
mILomo Corp, suId.
The Japanese consorti-
um Iormed u joInL venLure
wILI Myunmur TIIIuwu
SEZ HoIdIng (MTSH)
Public Ltd in January to
establish Myanmar Japan
TIIIuwu DeveIopmenL Ld
(MJTD).
MJTD Ius been deveI-
opIng LIe q6 IecLure
CIuss A Areu oI LIe SEZ,
wIIcI Is scIeduIed Lo
open In mId-zo1.
Any oI LIe LIree com-
punIes, wIIcI ure Jupu-
nese murkeLIng ugenLs oI
MJTD, muy be conLucLed
Ior deLuIIs on LIese IoLs,
Kyaw Min
Thilawa is touted as a key location, not only for export processing bases, but also for production bases
targeting domestic demand.
U
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a
sucI us LIe uvuIIubIe IoL
sIze, renL und oLIer condI-
LIons, LIe consorLIum suId
in a statement.
The Class A Area is
located approximately
zokm souLIeusL oI LIe
cupILuI Yungon, und oI-
Iers vurIous IncenLIves us
u specIuI economIc zone.
TIIIuwu Is LouLed us u
key IocuLIon, noL onIy Ior
exporL processIng buses,
buL uIso Ior producLIon
bases targeting domestic
demand.
The three companies
wIII provIde LIe InIru-
structure and utility ser-
vIces by uppIyIng LIe
know-Iow LIey Iuve de-
veIoped In LIe IndusLrIuI
purk busIness In ASEAN
counLrIes, LIe consorLIum
said.
On AprII z, LIe Jupun
nLernuLIonuI Cooperu-
LIon Agency (JCA) sIgned
u joInL venLure ugreemenL
Ior MJTD, mukIng LIe
deveIopmenL oI TIIIuwu
CIuss A LIe hrsL pubIIc-
prIvuLe purLnersIIp busI-
ness beLween Jupun und
Myanmar.
TIe Jupunese govern-
ment has committed to
InIrusLrucLure deveIop-
ment around the Class A
Areu sucI us power gen-
eruLIon und porL IucIIILIes
through yen loans.
. .~|~ .. .. :..q.~ , -
..,..:. ._.~.q.~~~
._.~:..:._..~:. e.
~.~~ ~.|..'e.._~:.
.,~.~.:.~... ._.:_~:.
.~._.
Mitsubishi Corp Marubeni
Corp . Sumitomo Corp
~ ~.,_e ._..:.~:. . . ~,
:.q. .._ _e. _. . .:.. .~ ~. .
_._ . :..|~ .,:~ . . .
.......__e.._.
World Bank ~.,_e_.,.:.-_.,e.:.~e_e..q...
, ..:...: q ~ ~~ ~ ~..q ~, ..'.:., .~ ~ ....
._~:. ~..| ~. ~_.,.._.
~..q~,..'.: '., .,.~, ..~,.~:. .._._,e
~,.~.~ q.._._,e ,.... ~,.:q~. ~,..~~
.~q ..:q~.,._.
~..|.,~ . ~~.. ._
_.,.:..~|~....:..q.~,
~.:.. . . ~~ (MTSH) .
~, ,~|q .~ ~~ .~ ....| .
..:q~.q..:.....~:
_.,.:.,..~|e_e.~.~~
.q...~~ (MJ TD) ~:.
e._..._.
MJ TD ._ ~~ ...
. . .e ~ .~ e . . ._
~. .|~ .. .. :..q.~ , ~~ .
Class A Area ~.,_e
e~~:..|. ,' e~~:
qq.__e.._.
~..|~.|~~~ MJ TD
. .,~ . ~ ...~,~ ._
._ ~. . ~ .. ~. .|._.~ ~
.:.- ~~e~~,. :.q...
. ~_.:.. . ._.:.~:. ..._., .
.._~:. ~_.,:.._.
~..| Class A Area .,q:
._ _..~: q,~,- ~.q
.~: ~ ~ . . ~: ~ ~~ :
~~_q_.. ~....:..q.~,
~:. ...:._.,q:.:._e.
._ .. .~|._ . ~ , ~ . . .
~~ ~ .:.~_._ ~ ....~ ~
~e . ~:.~~ ~ ._ . ~ . .
. .:.~~~ ~.~.,q:~..
_e..:.__e.._.
World Bank Grants $80m for
Community Development
W
orId Bunk Ius grunLed $8o mIIIIon Ior com-
munILy deveIopmenL projecLs In LIree Lown-
sIIps In Myunmur, LIe bunk suId.
TIe work oI LIe $86.-mIIIIon projecL Is now under-
wuy In KunpeLIeL In CIIn sLuLe, NumIsum In SIun sLuLe
and Kyunsu in Taninthayi region.
TIe sIx-yeur projecL, LIe hrsL WorId Bunk projecL In
z yeurs In Myunmur, sLurLed In MurcI und wIII be In
ILs hrsL yeur - coverIng qoo vIIIuges In LIree ruruI Lown-
sIIps, IncIudIng remoLe ureus In SIun SLuLe.
TIe Iender suId hve more LownsIIps wIII be udded In
LIe second yeur und seven In LIe LIIrd yeur oI LIe pro-
jecL.
Over LIe nexL Lwo yeurs, 1 oI Myunmur`s o Lown-
sIIps wIII benehL Irom LIe projecL, LIe WusIIngLon-
based lender said.
DurIng LIe hrsL yeur oI ILs operuLIon, LIe projecL wIII
benehL peopIe In u gIven LownsIIp, wILI work pIunned
In u wIde runge oI ureus, IncIudIng InLer-urbun rouds
und IIgIwuys, wuLer, sunILuLIon und ood proLecLIon,
IrrIguLIon und druInuge, IeuILI und educuLIon.
n subsequenL yeurs, IocuI peopIe wIII be ubIe Lo
cIoose LIe Lype oI pubIIc InIrusLrucLure LIey wIsI Lo
build or upgrade.
Phyu Thit Lwin
Myanmar Summary
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
Myanmar Summary
Myanmar Summary
Germun Bunk Gives Over $qm in Cush Assistunce
Aid comes after 25-year break
G
ermun governmenL-
owned deveIopmenL
bunk KIW Ius provIded
C; mIIIIon ($q.q mIIIIon) cusI
aid to Myanmar to encourage
economIc growLI In counLry`s
ruruI ureus, LIe bunk suId.
TIe hnuncIuI uId Is LIe hrsL
Irom Germuny Lo Myunmur IoI-
IowIng u z-yeur IIuLus sInce
1q88.
TIe grunL uId under u new
deuI, wIIcI KIW sIgned In Nuy
PyI Tuw IusL week, wIII be used
In buIIdIng ruruI InIrusLrucLure
In souLIern SIun sLuLe.
The German Federal Minis-
Lry Ior EconomIc CooperuLIon
und DeveIopmenL (BMZ) Ius
provIded LIe grunL. TIe uId
progrum runs unLII SepLember
zo1.
TIe sIgnIng oI LIIs ugreemenL
marks a historic moment in our
cooperuLIon wILI Myunmur.
mprovIng LIe popuIuLIon`s IIv-
Ing condILIons Is u very Impor-
tant goal. The programme that
Ius now been ugreed on wIII
muke u very vuIuubIe conLrIbu-
LIon In LIIs respecL, suId Dr
NorberL KIoppenburg, member
oI LIe ExecuLIve Bourd oI LIe
KIW Group.
The programme is aimed
uL expundIng LIe ruruI InIru-
sLrucLure, especIuIIy rouds und
brIdges. KIW suId LIIs wIII Im-
prove LIe oILen very poor popu-
IuLIon`s uccess murkeLs, scIooIs
und IeuILI cure IucIIILIes.
ExperIence wILI compurubIe
projecLs In neIgIbourIng coun-
May Soe San tries leads us to expect that the
Income oI LIe popuIuLIon wIII
Increuse sIgnIhcunLIy, wIIIe LIe
IrequenLIy oppressIve poverLy
cun be reduced, runkIurL-
bused KIW, wIIcI opened ILs oI-
hce In Myunmur LIIs yeur, suId
in a statement.
KIW suId IL Is prepurIng oLIer
projecLs on beIuII oI LIe Ger-
mun governmenL Lo Improve
vocuLIonuI LruInIng und pro-
mote small and medium enter-
prIses (SMEs).
n ebruury, Germuny wIped
o Myunmur`s debL by o per-
cenL, u IoIIow-up oI zo1 PurIs
Club Agreement.
Under u governmenL Lo gov-
ernmenL uId progrum, Ger-
mun nLernuLIonuI CooperuLIon
Agency also recently assisted
LIree Myunmur prIvuLe bunks
wILI hnuncIuI LecInIques Ior
LIe deveIopmenL oI Myunmur`s
SMEs.
Thilawa SEZ Holdings to Open Share Exchange Counters in August
M
yunmur TIIIuwu SEZ
HoIdIngs (MTSH)
Public Ltd in August
wIII open sIure excIunge coun-
Lers wIere sIureIoIders oI LIe
upcoming special economic
zone wIII be ubIe Lo Lrude sIures,
MTSH cIuIrmun suId.
AccordIng Lo our pIun, we
aim to open the counters in Au-
gusL. BuL we muy open eurIIer
LIun LIuL, U WIn Aung LoId
Myanmar Business Today.
TIe counLers wIII muke IL
eusIer Ior sIureIoIders Lo geL
LIeIr dIvIdends us sIure vuIue
Increuses, Ie udded.
SIures oI TIIIuwu SpecIuI
EconomIc Zone (SEZ) wenL on
sale in March in a bid to raise
Kz1.q bIIIIon ($zz. mIIIIon)
LIrougI seIIIng z.1q mIIIIon
sIures (K1o,ooo eucI) Lo Iund
LIe hrsL pIuse oI consLrucLIon
oI LIe SEZ z kIIomeLres souLI
oI LIe counLry`s commercIuI
Htun Htun Minn hub Yangon.
GovernmenL Iud uIreudy In-
cIuded LIe pIun oI openIng
sIure excIunge counLers wILIIn
LIree monLIs uILer seIIIng LIe
shares in the company estab-
IIsImenL guIdeIIne, suId U SeL
Aung, wIo currenLIy serves us
LIe VIce CIuIrmun oI LIe Cen-
LruI Bunk oI Myunmur und uIso
us LIe cIuIrmun oI LIe govern-
ments Management Commit-
Lee oI TIIIuwu SEZ.
TIe compuny wIII uIso seL up
unnuuI meeLIng Ior sIureIoId-
ers to explain the companys
ongoIng projecLs und dIvIdends,
suId U WIn Aung. He suId LIe
compuny wIII seII more sIures
dependIng on busIness requIre-
ment.
TIe TIIIuwu projecL Is u joInL
venLure underLuken by LIe My-
unmur und Jupunese govern-
menLs uIong wILI u consorLIum oI
Jupunese compunIes, wIere LIe
Myunmur sIde owns 1 percenL
and the Japanese side the rest.
n LIe joInL venLure compuny,
Myunmur Jupun TIIIuwu De-
veIopmenL Ld (MJTD), My-
unmur governmenL`s TIIIuwu
SEZ MunugemenL CommILLee
owns 1o percenL und LIe resL
Is owned by MTSH, wIIcI Is u
consorLIum oI nIne Myunmur
companies.
Myanmar Summary
Thilawa SEZ Share ~ee:..
.:.~.,_e ~.._.,._.q:..
. ._ .~: ~:.:.~ ~~, _. ~ .
~ e . . . :.._ _e. ._~: . MTSH
~ . ~ ~ _ .~..~: ~ MBT .
._.:._.
~~, -_..~~. ~.:._._..
.q: ... ..:~. q e e:.:.~ ~. .
_., ._ .q:... . .:.~~ ~ Open
Counter ~ e...__e.._~:.
,.~ .~._.:._.
..,.,.~..~q _.~..:
e..q, q_qe:..|~e. .~
..:eeq.|~e''e ,.~ .~._.:
._.
~.qee:~ee :...:.~.,_e
~. q e e:. :.. ,_ ... .. . . ..
~. ~.. .q._ _e. _. . ~ . ~ . ~~ .
. .~_. .. . . . ~. q e e:~, e .
_.~~.:_.._e.._~:. ._~:
. . . q e e:.~. .:.~ .. . _.q: ..
. .:.~_.~ . _.q: ... .:.~~ ~
~. e ~~ ~e .q: ._.. . . ._
.~: ~:.:. e . . . :.. :_e. ._ e
.~..~:~ ._.:._.
~.:.. ~ . ~ ~. . ~.,_e q e e:
~e e :.. .:.~. ._...q, ~~ ~
qee:.:. .q:.._.. ...~~.
Open Counter .:. e . . ...q, .
.~: . .. ~ .....: . . ,... . ,
~ _ . ..q.. . ._~:. Thilawa
SEZ . . ., . .q.~ _ -e ~ . ~ e
~_ ..~.~:~ ._.:._.
:., ~. .q. e _ e ..q.~ _ e.
._ KFW ~.,_e _.,.:.q
.~.. ....:.~ q ..: . .. :..q.
..,..:. ~.~~q,~~~ ..:.
e, .,. ~..q~,..'.:
... .,., .:~.....__e.
._~:. ~..|~. ~_.,._~_:
:.._.
~. .|~.:~~. ~:..,_._.~:
~_...._~.~~.~.~.q..
._. ._e. _. .q . ._._ ,e .~: . . .~..
....:.-~._...~..~.:. ~_
..:~ .q.~~ ~ ~. ._.._ _e. ._ .
Phyu Thit Lwin
M
alaysian chemical
products distributor
SumcIem HoIdIngs
BId pIuns Lo expund Lo Myun-
mur Lo Lup InLo LIe SouLIeusL
AsIun counLry`s sIzeubIe popu-
lation.
TIe compuny`s cIuIrmun, Ng
TIIn PoI, suId LIe compuny Is
In LIe mIddIe oI execuLIng some
ground works und Is LuIkIng Lo
bankers and companies there to
seL up u dIsLrIbuLIng operuLIon,
Malaysian media reported.
TIe expunsIon Is In IIne wILI
LIe compuny`s vIsIon Lo become
a leading industrial chemical
dIsLrIbuLor In LIe SouLIeusL
Asian region.
nLernuIIy, we Iuve dIscussed
Myunmur Ior quILe some LIme
now. L Is u murkeL wILI u sIg-
nIhcunL popuIuLIon und grow-
ing economy. Myanmar is also
u poIILIcuIIy sLubIe counLry, Ie
told reporters.
SumcIem currenLIy Ius u
presence In ndonesIu, VIeLnum
und SIngupore, und Is LurgeLIng
Lo ruIse revenue conLrIbuLIon
Irom overseus operuLIons Lo o
percenL by zo18 Irom LIe cur-
renL q percenL.
The company started opera-
tions in Cambodia early this
yeur und Is LurgeLIng LIe hrsL
revenue conLrIbuLIon Lowurds
LIe group`s revenue by hnuncIuI
yeur endIng Dec 1, zo1.
Samchem Targets Expansion
into Myanmar Market
....q :..:~ .-... _ . ~ . .
_e,_e.. SamchemHoldings Bhd
~.,_e _.,.:.. ..,.~..q,
_...,._~:. .q._.
~..|~.~~_ Ng Thin Poh
. ~.~~.,_e ~._......:
.~~.~:. ..~.~q_.. ~
..,.. ~.~.:.~:. _e,_e..q.
. . , ..:. . . ~ . q, ~~ ~ .. .
....~q._~:. ....q:..~..:.
~q .q._.
~ . ~ ~.,_e ~.q .~: ~:q
...~ .~,..~..:~~..
.q.. . , .~. . _ e. .:q, q_ . , .
:._. .._ ._e. ._ .~, .~: ~
_.,.:.~~~ .......,~:e:
~.~.,.: ~.~:.q..q:~.,.|_..
_., .:. e: . ..q.:._.:._. . . .. :.
.q. e_e..,..~.._e..|~e.
.|~_. _.,.:.e: ..q.~_
_.~ .~..._. _e..|~e''
e .~..:~.:.~:. ._.:..
._.
Samchem ._ .~q~ ~.,.
q:. -e~,.. .~:...:.~
..~.~q_.. ~~ ~ _._.
..,..:.~:. .~q ,, q:..,..
~ q:. . , . ~ ._. . :.. q, q_ . , .
:.._.
The KfW loan aims to build rural infrastructure in Shan state.
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Thilawa port in Yangon.
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
7
LOCAL BIZ
Myanmar Summary
Contd. P 12...(\ild Last)
Contd. P 12...(\ild Last)
Expat Experiences in Yangon: The Wild, Wild East
F
oIIowIng un exodus oI
IoreIgners IoIIowIng Inde-
pendence, In recenL yeurs
Yungon`s ever expundIng expu-
triate community has ballooned
Irom u hgure bureIy In LIe Iun-
dreds, Lo LIe Lens oI LIousunds.
Their stories and experiences
oI u once greuL cILy LryIng Lo
re-esLubIIsI ILseII provIde u re-
markable insight into a nation
uL u unIque sLuge In ILs deveIop-
ment.
cume Iere prImurIIy us u
LruveIIer, Iowever, uILer be-
Ing Iere Ior u coupIe oI weeks,
noLIced IL wus ImpossIbIe Lo
geL uny up-Lo-duLe InIormuLIon
on LIe cILy Ior IoreIgn vIsILors.
IeIL couId IeIp cIunge LIIs,
LIe Iounder oI YungonILe, un
onIIne guIde Ior expuLs, LeIIs me
excILedIy over un Iced coee In
downLown Yungon.
Greg KIemm, un AusLruIIun,
LypIhes LIe burgeonIng expu-
LrIuLe communILy IuIIIng Irom
nuLIons us dIverse us Hondurus
Lo UkruIne, wIo Iuve opLed Lo
muke Yungon LIeIr new Iome
und pIuce oI work.
nLrIgued Lo Ieurn more oI
LIeIr quoLIdIun IIves, em-
burked on u mIssIon Lo Inves-
LIguLe LIe experIences oI Yun-
gon`s expuLrIuLe enLrepreneurs,
wILI LIe InLenLIon oI guInIng u
cIeurer InsIgIL InLo Iow LIey
Iuve Iured In Myunmur.
To my surprIse, Iound Yun-
gons expats extremely reclu-
sIve. HuvIng seL ouL Lo InLervIew
uround LIIrLy peopIe, seLLIed
Ior IILLIe more LIun Len. WIen
deIved deeper, LIe reusons
Ior LIIs becume cIeurer. Some
IndIvIduuIs were reIucLunL Lo
reveuI InIormuLIon LIuL couId
be uLIIIsed by LIeIr compeLILors,
wIIIsL oLIers operuLe In wIuL
one might describe as a legal
grey ureu, or downrIgIL IIIeguI-
Iy - wIIcI expIuIns wIy some
were reIucLunL Lo dIscuss LIeIr
experIences, und wIy coIIuLIng
reIIubIe duLu remuIns very prob-
lematic. That did not perturb
me, Iowever, us uncovered
muny InLeresLIng observuLIons
Irom LIose grucIous enougI Lo
puL up wILI my nuggIng emuIIs
und probIng quesLIons.
Whether one is expanding on
exIsLIng regIonuI operuLIons,
expIoILIng u nIcIe, or sImpIy In
Iove wILI LIe counLry, LIe uI-
Iure oI Myunmur Is sLrong. YeL
despite the nation possessing
sLuggerIng opporLunILIes Ior
Jonathan Harvey
poLenLIuI InvesLors, LIere ure u
myrIud oI obsLucIes und oddI-
LIes, wIIcI muke esLubIIsIIng u
successIuI busIness u duunLIng
cIuIIenge. TIe puce oI geLLIng
LIIngs done cun be IrusLruLIng
uL besL, LIougI money Iud been
known Lo IeIp speed up LIIs
process.
A common compIuInL oI LIose
spoke wILI Is LIe dIerenLIuI
In cosLs Ior IocuIs und IoreIgn-
ers. L Is common prucLIce Lo
Iuve vusLIy dIerIng IocuI und
IoreIgn ruLes In muny uspecLs
oI duIIy IIIe. TIIs Ieuves IoreIgn
InvesLors ouL oI pockeL und oI-
Len reIucLunL Lo InvesL LIeIr cup-
ILuI. ndeed, In zo1 LIe WorId
Bunk ruLed Myunmur 18z ouL oI
18q nuLIons In euse oI conducL-
Ing busIness, und 18q oI 18q on
sLurLIng u new busIness. n spILe
oI LIIs, IoreIgn enLrepreneurs
seIIIng everyLIIng Irom IoIe
gras to organic cleaning prod-
ucLs Iuve LrIed Lo muke some-
LIIng Ior LIemseIves In AsIu`s
hnuI IronLIer.
Yungon wus IormerIy one oI
LIe grundesL ouLposLs oI BrIL-
uIn`s gIobuI empIre, yeL In recenL
LImes, IL Ius unquesLIonubIy
suered Irom LIe debIIILuLIng
eecLs oI enIorced IsoIuLIon.
Myanmar may no longer boast
the second strongest economy
In SouLIeusL AsIu, In IucL IL IIes
boLLom oI uII ASEAN counLrIes
per capita.
BuL Yungon remuIns Myun-
mars economic hub and home
Lo over sIx mIIIIon weIcomIng
IndIvIduuIs. n recenL yeurs LIe
city has undoubtedly embarked
on LIe hrsL Ioruys oI reInLe-
gruLIon wILI LIe InLernuLIonuI
communILy. HoLeIs Iuve been
spruced up, some oI LIe noLorI-
ous IoIes In LIe puvemenLs ure
covered, und muny resLuurunLs
Iuve vuIIunLIy uLLempLed Lo
translate their menus into Eng-
IIsI - NuzI IrIed rIce unyone?
YeL, one onIy Ius Lo Luke u
sIorL IgIL Lo Bungkok Lo com-
preIend LIe vusL gup LIe cILy Is
IucIng Lo cuLcI up.
WILI LIe excepLIon oI Aung
Sun Suu KyI or LIe occusIonuI
gIoomy news reporL, ouLsIde
Myunmur very IILLIe uccuruLe
InIormuLIon Is known ubouL
Yungon. However, IIke u Iong-
suerIng muLe, Yungon Ius
hnuIIy Iound Ier voIce. WILI
u vIvucIous press permILLed u
surprIsIng degree oI Ireedom,
Yungon`s expuLs Iuve IoIIowed
this lead and are committed to
provIdIng greuLer InIormuLIon
on the city.
A IundIuI oI IoreIgn-run cILy
guIdes sucI us YungonIIIe, Yun-
gonILe und Myunmore Iuve
sprung up attempting to plug
mucI oI LIe vusL bIuck IoIe LIuL
IoreIgners Iuce In eusIIy uccess-
Ing reIIubIe InIormuLIon on LIe
cILy. TIey cover LopIcs us dI-
verse us beuuLy pugeunLs Lo res-
LuurunL revIews wIIIsL Myun-
more Ius even IeId un uwurds
ceremony. Although internet
connecLIons ure sLIII puInIuIIy
sIow Loduy, LIIs InnovuLIon
wouId Iuve been unLIInkubIe
jusL IuII u decude ugo. L Is onIy
Lwo yeurs sInce one oI my InLer-
vIewees Iud Lo upIoud IIs web-
sILe wIenever Ie wus In Bung-
kok. Now Ie Is ubIe Lo upduLe
IIs puge on u duIIy busIs provId-
Ing useIuI InIormuLIon Ior Yun-
gons expats and locals alike.
WIIIsL LIose wIo succeed cun
ourIsI, uII cun cIunge In LIe
bIInk oI un eye, In u counLry
wILI u governmenL muInLuInIng
LoLuI conLroI. One IndIvIduuI
spoke wILI Iud been u success-
IuI wIne mercIunL, suppIyIng
expuLs us weII us LIe cILy`s bur-
geonIng mIddIe cIuss, wILI LIe
hnesL Bordeuux Iud Lo oer,
wIen dIsusLer sLruck.
A compeLILor ungered u gov-
ernmenL omcIuI wIo reLuIIuLed
by ucLIvuLIng unLIquuLed IegIsIu-
LIon bunnIng LIe prIvuLe Impor-
LuLIon oI beer und wIne. TIus
cuLLIng LIe wIne mercIunL`s
suppIy cIuIns compIeLeIy, Ieuv-
ing his operations running at a
severeIy reduced cupucILy, und
his customers thirsty.
n LruLI, LIe obsLucIes experI-
enced wIen operuLIng In Yun-
gon are innumerable and too
dIverse Ior me Lo cover In IuII.
YeL, LIere were cerLuIn sImIIurI-
ties and recurring themes that
cropped up among my inter-
vIewees.
UnsurprIsIngIy, LIose oper-
uLIng onIIne busInesses were
uecLed by sLuLLerIng InLerneL
speed, und LIe speed oI uImosL
everyLIIng eIse Ior LIuL muLLer.
A Iuck oI u sumcIenLIy skIIIed
IocuI workIorce wus uIso u re-
currIng LIeme - LIere sImpIy
ure noL enougI compuLer-suvvy
EngIIsI-speukIng Burmese Lo
go uround. TIose sumcIenLIy
quuIIhed cun be very seIecLIve,
oILen opLIng Ior Iurger compu-
nIes LIuL cun uord IIgIer suIu-
ries.
PeopIe operuLIng dIerenL
Lypes oI busInesses Iuced dIer-
ing problems. A common issue
Ior LIose compunIes requIrIng
IIgIer end IocuLIons wus hnd-
ing the right locale. Florence
GrungeruL oI uw hrm AudIer
and Partners claimed there
sImpIy Is noL enougI uord-
ubIe reuI esLuLe In downLown
Yungon. TIIs senLImenL wus
ecIoed by muny oLIers, und
wILI good quuIILy omce spuce
vIrLuuIIy non-exIsLenL, sIe wus
Iorced Lo compromIse on LIe
standards she had become used
Lo, boLI In Europe und wILI oLI-
er operations in Vietnam.
Sule Pagoda in downtown Yangon. Despite Myanmars annoyances and quirks, to many expats working and living in Myanmar
is a fuIIIing, Iife-enriching experience.
K
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In recent years the city has undoubt-

edly embarked on the first forays
of reintegration with the interna-
tional community. Hotels have been
spruced up, some of the notorious holes in
the pavements are covered, and many res-
taurants have valiantly attempted to trans-
late their menus into English Nazi fried
rice anyone?
. ~ .. .q.q_ . .._ . . _ .:.
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
Myanmar Summary
Myanmar Summary
Garlic Chives.
M
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Myanmar Plans Large Scale
Exports of Garlic Chives
T
Ie governmenL pIuns
to start exporting garlic
cIIves Lo SouLI Koreu In u
commercial scale by collaborat-
Ing wILI LIe growers, uccordIng
Lo LIe MInIsLry oI Commerce.
GurIIc CIIves or CIInese eek
(scIenLIhc nume: Allium tu-
berosum) Is u vegeLubIe nuLIve
Lo AsIu, und Is popuIur In SouLI
Koreu us IL Is oILen used In Lru-
dILIonuI Koreun KImcII Iood.
n Myunmur, gurIIc cIIves ure
mosLIy cuILIvuLed In SIun sLuLe.
We are planning to start
Iurge-scuIe exporLs oI gurIIc
cIIves Lo SouLI Koreu. IrsL,
we wIII see wIuL Is LIe demund
LIere und LIen we`II seek oLIer
exporL murkeLs, suId U WIn
MyInL, dIrecLor oI LIe MurkeL
nIormuLIon und ReseurcI Leum
oI LIe mInIsLry.
SouLI Koreu IeId u work-
shop in Myanmar in March to
prompL Myunmur gurIIc cIIves
growers Lo exporL LIe vegeLubIe
on a commercial basis.
I we exporL gurIIc cIIves
vIu sIIps IL wIII perIsI beIore IL
reucIes LIe porL. BuL, exporLIng
by uIr Is noL IeusIbIe. So, we wIII
Lry Lo muke gurIIc cIIves pow-
der and then export the prod-
uct. We already ran some tests
uILer LIe Koreun worksIop, U
Win Myint said.
BesIdes SIun sLuLe, LIere Iuve
been some LesL cuILIvuLIons In
PyIn Oo wIn LownsIIp In Mun-
duIuy dIvIsIon Lo exporL Lo LIe
Koreun murkeL, LIe dIrecLor
said.
SouLI Koreu Ius been buyIng
gurIIc cIIves Irom us Ior u Iong
LIme. BuL IL Ius never reucIed
a commercial scale. There are
some exporLers In LIe murkeL,
und II LIey geL governmenL
support they can boost their
ouLpuL, suId U HnIn Oo Irom
May Soe San Myanmar Organic Agriculture
Group (MOAG).
He suId GurIIc cIIves cun be
cuILIvuLed wILIIn LIree monLIs
and the process has to start be-
Iore monsoon begIns In AprII.
I LIere Is Iurge-scuIe exporLs
IL wIII be benehcIuI Ior us, suId
U Aung TIun, u gurIIc cIIves
grower.
CurrenLIy, u vIss (1.6 kIIo-
grums) oI gurIIc cIIves In Yun-
gon ure soId Ior ubouL K1,ooo.
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...~~._.q:.,~e''e ~..|
~,_~._:,- Market information &
Research Team(MIRT) . Director
U Win Myint ~ ... q~.,
~ ._.:._.
_., .:. -. ~ , ~.e .. _e. ..:
._..~ q.._._,e~ ~.:...
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Workers at the construction site of a luxury hotel and apartment complex invested by Vietnams Hoang Anh Gia Lai Group in
Yangon.
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Vietnam, Myanmar Talk Steel Manufacturing
Eye garment, textiles and SME cooperation
V
ietnam and Myanmar
are looking to set up a
joInL venLure In sLeeI
munuIucLurIng, u mInIsLer suId.
U Muung MyInL, mInIsLer Ior
IndusLry, durIng IIs vIsIL Lo VI-
eLnum suId Myunmur wIII expe-
dILe LIe esLubIIsImenL oI sLeeI
joInL venLures wILI VIeLnum
und cuIIed Ior InvesLmenL Irom
Vietnamese businesses in gar-
ment and textiles.
DurIng LuIks wILI VIeLnumese
MInIsLer Ior ndusLry und Trude
Vu Huy Houng, LIe mInIsLer
suId IIs vIsIL Lo VIeLnum wus Lo
seek purLners und Iorge bIIuL-
eruI Lrude IInks In LIe heIds oI
cIemIcuIs, IerLIIIsers, sLeeI und
agricultural machinery.
Myunmur wIII creuLe opLImuI
condILIons Ior VIeLnumese IerLI-
IIser hrms Lo boosL LIeIr exporLs
Lo LIe murkeL, Ie udded.
n LuIks wILI LIe CIuIrmun oI
VIeLnum`s Bunk Ior nvesLmenL
und DeveIopmenL oI VIeLnum
(BDV) Trun Buc Hu, U Muung
MyInL und cIuIrmun oI Myun-
mur`s SmuII und MedIum-sIzed
ndusLry DeveIopmenL Bunk
(SMDB), expressed LIe Iope
LIuL BDV wouId be one oI LIe
hrsL IoreIgn bunks IIcensed Lo
operate in Myanmar in time to
come.
Hu suId IIs bunk wus reudy
to set up a commercial bank
In Myunmur soon uILer geLLIng
Aye Myat upprovuI Irom Myunmur gov-
ernmenL, uddIng LIuL BDV Ius
Ieused u ,ooo squure meLre oI-
hce In Yungon In unLIcIpuLIon oI
the plan.
BDV wIII supporL SMDB
In deveIopIng bunkIng servIce
producLs und InIormuLIon LecI-
nology application besides ex-
cIungIng InIormuLIon on bunk-
Ing operuLIons und economIc,
hnuncIuI und bunkIng poIIcIes
oI VIeLnum und Myunmur, Ie
said.
SMDB`s cIuIrmun suId LIuL
LIe Lwo bunks wIII sIgn u Mem-
orundum oI UndersLundIng on
bilateral cooperation and tech-
nological support in Myanmar
later in May.
According to the Vietnamese
MInIsLry oI PIunnIng und n-
vesLmenL, unLII LIe end oI IusL
yeur, q VIeLnumese hrms were
licensed to operate in Myan-
mar.
TIe Lwo counLrIes LurgeLed u
bIIuLeruI Lrude Lurnover oI $6oo
mIIIIon by zo1. nvesLmenL
und LourIsm, respecLIveIy, Irom
Vietnam to Myanmar are also
expecLed Lo LoucI $1-1.z bIIIIon
und ,ooo LourIsLs by zo1.
-e~,.. _.,.:.~~.,_e
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q ~ . q, . . ..: .~ q ._~: .
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~_....,..:.~ .:.q:~
q..._...q, e~..'.._.
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Vu Huy Hoang ..~..,~~.
~, _~ .. , .-- e~ ,. .q .. ~ . .
. ~ , . e . _ . ~ q, ~~ ~
.:~.-. .:~._._.~: ..~.
. ~ ...q..~ .. _ ..:.~~ ~ . ...| .
. . .:. .:.q:~ q :.e _. ._e. ._~: .
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_.,.:.~.,_e -e~,..:~
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~,.._..:....~~. ~..q,
~~~ ~._.~.,.~:..:. e,~.
...._ _e. ._~: .~ ._ . ~, _~ .. ._.:
_~:..._.
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(BIDV) - ~_ Tran Bac Ha
_ ., .:. ~....:.. ~.~ .:.
.~...,.e_e..q.~ (SMIDB)
~_. ...:..:~.~..~
~. BIDV ._ _.,.:.~.:
.q:~..~.qq._ ....~
.:. . ~. . _e. .:. ._~: . ._.:
_~:..._.,.~._ _.,.:~..q
. ._..~qq._. _.,.:.
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_. . .~ q ~ BIDV ~.,_e .~ q, .
.~: ,~~~ ~~eq ,..,.~:. q,
~,_.~:.q..:.._.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
9
Myanmar Summary
Myanmar Summary
Ball Corp to Build Beverage Can
Plant in Myanmar
B
all Corp plans to build
u one-IIne beveruge cun
munuIucLurIng pIunL In
Myunmur, LIe AmerIcun puck-
aging and aerospace companys
omcIuIs suId.
TIe pIunL, wIIcI Is IocuLed In
Yungon, Is under u Iong-Lerm
contract to supply Coca-Cola Pin-
yu Beveruges, und LIe IucIIILy wIII
uIso suppIy oLIer IocuI, regIonuI
and multi-national customers.
TIe IucIIILy Is expecLed Lo be-
gIn producLIon In mId-zo1, LIe
compuny suId, wILIouL reveuI-
Ing LIe cupucILy und LIe hnun-
cIuI Lerms oI LIe pIunL.
TIe demund Ior beveruge
conLuIners In SouLIeusL AsIu Is
expecLed Lo conLInue Lo grow
sIgnIhcunLIy over LIe com-
Ing yeurs, suId JoIn A Huyes,
cIuIrmun, presIdenL und cIIeI
execuLIve omcer.
TIe Myunmur pIunL wIII uI-
Iow us Lo boIsLer our presence
in this high-potential market
wILI u reIuLIveIy smuII InvesL-
menL, mukIng IL un IdeuI hL us
Phyu Thit Lwin
purL oI our DrIve Ior 1o growLI
sLruLegy.
BuII Corp suId LIe move wIII
complement its existing op-
eruLIons In SouLIeusL AsIu. TIe
mosL recenL wus u joInL venLure
pIunL In VIeLnum, wIIcI begun
producLIon In zo1z.
BuII Is excILed Lo brIng ILs
IIgI-quuIILy puckugIng und
global sustainability practices
Lo LIe Myunmur murkeL, suId
GIIun ALupuLLu, presIdenL, BuII
AsIu PucIhc Ld.
Thanks to long-standing re-
IuLIonsIIps, we ure ubIe Lo uIIgn
LIe new pIunL`s cupucILy wILI
LIe IocuI hIIIng needs oI Cocu-
CoIu PInyu Beveruges und sev-
eruI oLIer IocuI, regIonuI und
muILI-nuLIonuI cusLomers.
~..q ~, . . .. . ..._~: .~ . ~
~.._e.._ Ball Corp ~.,_e
_., .:. ~ ~. q_ .~ , ~. . ~_
..:~ q, . . .~ q ._~:. . q._ .
~. .|.~ , ._ q, ~ , _.~ ~_
..:~.__e._.. Coca-Cola Pinya
Beverages . ..q_.:.....
. . ~ ._ ~_. ~_.:._._ ~ . ...
~ .. . q. _.:.. .. . .:.. .| ~
. . _e, _e.. :.._ _e. ._~: . . q._ .
~..|.~,~:. ~~ ..._..
~ .~ q, ., . , .:.._~: . ~. .|
~ . ~ . ~ _ ., :.._ . ~. .|
~.~._ ~.:~.~..~ ~..
..:...|. ~,,~~ q~: ~~, ~
~..q~,..'.: ... .,.
.q:....._~:. .q._.
ForkIifts move aIuminum cans inside the BaII Corporation`s manufacturing faciIity warehouse in FaireId.
B
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Cebu Pacic has earIier expressed interest in mounting direct Hights to Myanmar.
Myanmar Inks Air Deal
with the Philippines
M
yanmar has has signed
u new uIr ugreemenL
wILI LIe PIIIIppInes
updating an earlier pact that
wus sIgned In 1q;q by Increus-
Ing LIe IgIL IrequencIes und
seat allocations in a bid to boost
Lrude und InvesLmenLs.
TIe memorundum oI under-
sLundIng on uIr servIces wus
sIgned by LIe Lwo counLrIes on
Tuesduy IusL week.
TIe PIIIIppInes` CIvII Aero-
nuuLIcs Bourd (CAB) execuLIve
director Carmelo Arcilla said
LIe new deuI uIIows LIe desIg-
nuLed uIrIInes oI LIe PIIIIppInes
und Myunmur u LoLuI oI ,;8o
seuLs u week or LIree IgILs u
duy beLween MunIIu und poInLs
in Myanmar.
AL presenL, Myunmur Ius
three international airports.
Arcilla said both countries
ugreed on unIImILed Lrumc
rIgILs beLween uII poInLs In LIe
PIIIIppInes, excepL MunIIu, und
all points in Myanmar.
Myunmur Is u rupIdIy grow-
Ing economy oI ubouL 6o mII-
IIon peopIe, wILI u poLenLIuI Ior
LIe deveIopmenL oI dIrecL con-
necLIvILy wILI LIe PIIIIppInes,
Kyaw Min Arcilla said.
Philippine Airlines and Cebu
PucIhc Iuve eurIIer expressed
interest in mounting direct
IgILs Lo Myunmur.
Three other air agreements
were successIuIIy concIuded by
LIe PIIIIppInes so Iur LIIs yeur,
IncIudIng LIe deuIs wILI runce
In Junuury, SIngupore In ebru-
ury, und New ZeuIund In MurcI.
TIe AquIno udmInIsLruLIon Is
pursuIng uIr LuIks us purL oI ILs
open skIes poIIcy. Under Execu-
LIve Order No.zq, uIrporLs oLIer
LIun LIe NInoy AquIno nLernu-
LIonuI AIrporL wouId be opened
Lo more IoreIgn Lrumc. TIe
PIIIIppInes` LourIsL urrIvuIs ure
expecLed Lo doubIe Lo 1o mIIIIon
by zo16.
W
M
C
BuII Corp suppIIes puckugIng
soIuLIons Ior beveruge, Iood und
IouseIoId producLs cusLomers,
us weII us uerospuce und oLIer
LecInoIogIes und servIces prI-
murIIy Ior LIe US governmenL.
TIe hrm und ILs subsIdIurIes
Iuve 1q,oo empIoyees worId-
wIde und reporLed zo1 suIes oI
$8. bIIIIon.
_., .:~.,_e e .. . . . ~
. . . ~ .q. .:.._ ..._~: ..
q:.:. . ~:. ..e: _ ~ . . , ..
..,q:.~.~.~~~:. ~._.~:
.q:.~e.q.. q..._.....:.~:.
_.~q,~~~ ~.......
.~._~:. .q._.
~..| ..._~:.~,..:..q:
..:~ _ .~ .:. , . :~:.e. ~
.~~|.,~.q..._.._e.._.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Myanmar Summary
Myanmar Summary
Kidnapped Chinese Contractors Freed
Aye Myat
T
wo conLrucLors oI CII-
nese copper mInIng hrm
Wunbuo wIo were kId-
nupped Irom LIe conLroversIuI
Letpadaung copper mine pro-
jecL ureu In norLIwesLern My-
unmur Iuve been reIeused by
communILy ucLIvIsLs, LIe com-
pany said.
TIe Lwo kIdnupped, wIo re-
Lurned Lo LIe work cump uL
;:1pm on Monduy IusL week,
ure In good sIupe, LIe compuny
suId on ILs websILe.
The Letpadaung mine in Mo-
nywu, ubouL 1oo km (6o mIIes)
wesL oI MunduIuy, Ius Iong
been u source oI uggruvuLIon
Ior LIe IocuI resIdenLs, wIo suy
LIousunds oI ucres oI Iund were
IIIeguIIy conhscuLed Lo muke
wuy Ior LIe mIne`s expunsIon.
The incident is the latest in
wIuL cun be seen us un unLI-
China sentiment that has been
in Myanmar in recent years. Lo-
cuI resIdenLs suy LIey were up-
seL ubouL LIe ImpucL oI mInIng
In LIe ureu, und LIe desLrucLIon
oI u BuddIIsL LempIe In AprII In
u mIne expunsIon, uccordIng Lo
u UP reporL.
n November zo1z, rIoL po-
lice raided camps set up by
proLesLers, InjurIng more LIun
1oo peopIe, IncIudIng uL IeusL
6; monks. TIe governmenL
later renegotiated the original
conLrucL Lo Luke 1 percenL oI
LIe prohL InsLeud oI LIe InILIuI
q percenL, wIIIe puLLIng usIde
$ mIIIIon Ior socIuI projecLs.
Myunmur Wunbuo geLs o per-
cenL oI LIe prohL und UnIon oI
Myanmar Economic Holdings
Ld (UMEH), owned by My-
unmur`s mIIILury, 1q percenL.
Under LIe orIgInuI conLrucL,
UMEH goL q percenL und
Myunmur Wunbuo 1 percenL.
Wunbuo, u subsIdIury oI
NorInco, u bIg urms munuIuc-
Lurer, bougIL InLo LIe projecL In
zo11 uILer vunIoe, u CunudIun
mIner, Iud dIvesLed.
AIong wILI LIeIr Myunmur
drIver, LIe Lwo CIInese were
Luken uwuy wIIIe conducLIng
Iund survey. Some zo vIIIugers
Irom OId SeLe vIIIuge sLopped
LIe cur oI LIe LrIo und Look
them to a primary school in the
vIIIuge. TIe Myunmur nuLIonuI
wus reIeused u duy eurIIer IoI-
IowIng negoLIuLIons beLween
the local administration and the
vIIIugers.
The kidnapping saga comes as
rIoLs Look pIuce In VIeLnum Lwo
weeks ugo over CIInu`s InsLuI-
IuLIon oI un oII rIg In dIspuLed
wuLers In LIe SouLI CIInu Seu.
Myanmar Summary
YISB to Give q-Hoor Ilectricity to Indostriul Zones
T
he Yangon Electric-
ILy SuppIy Bourd
(YESB) wIII ensure
uninterrupted electricity
supply in Yangons indus-
LrIuI zones despILe Ire-
quenL power cuLs In muny
LownsIIps In LIe commer-
cIuI Iub oI LIe counLry, u
Lop omcIuI suId.
ndusLrIes ure LIe muIn
drIver oI our counLry`s
GDP and electricity is es-
senLIuI Ior IndusLrIuI zones
Lo operuLe. So, we wIII gIve
prIorILy Lo LIem LIIs yeur,
U Aung KIuIng, cIuIrmun
oI YESB LoId Myanmar
Business Today.
RecenLIy, YESB un-
nounced LIuL LIere wIII
be IrequenL bIuckouLs In
Htun Htun Minn &
Kyaw Min
some purLs oI Yungon us
IL expunds IL neLwork und
carries out maintenance
work on ILs power grIds.
YESB uIso suId LIuL IL
has already expanded
ILs neLwork by qq.q
mIIes oI 66KV power
grIds, ;;o.q1 mIIes oI
KV power grIds und
1,1o8.qoz mIIes oI 11KV
power grIds Lo provIde
constant electricity to the
IndusLrIuI zones.
TIe governmenL re-
cently hiked the electric-
ILy prIces sInce AprII 1 In
a bid to curb the rising
subsIdIes Ior eIecLrIcILy
generation despite huge
public outcry.
Iuve noLIIng Lo suy
about the electricity price
IIke. AII we need Is regu-
Iur eIecLrIcILy, U MyuL
TIIn Aung, cIuIrmun oI
HIuIng TIuryur ndusLrIuI
Zone, suId.
usL yeur, we Iud Lo
even suspend our operu-
LIons becuuse oI bIuck-
ouLs. BuL, LIe eIecLrIcILy
suppIy Is becomIng quILe
reguIur LIese duys, Ie
added.
Last year industrial
zones Iud Lo cuL down op-
eruLIon Iours, IIke prIces
oI producLs und were noL
ubIe Lo provIde overLIme
puys Lo LIe Iubourers, U
Myat Thin Aung said.
RecenLIy, YESB wus
Iummered wILI bIuckouL
compIuInLs us IL wus onIy
able to distribute about
8oo meguwuLLs (MW)
oI eIecLrIcILy In Yungon,
wIIcI Is onIy 6o percenL
oI LIe overuII demund In
summer.
The authorities said
LIey wIII be ubIe Lo pro-
vIde round LIe cIock eIec-
tricity to the households
In Yungon very soon.
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Straits Times .~ ..:~ .e: _.:.
._ .
Singupore Airlines' Ilight Veers oH
Runway in Yangon, No Injuries
Wai Linn Kyaw
S
ingapore Airlines con-
hrmed on TIursduy IusL
week LIuL one oI ILs pIunes,
IgIL number SQqq8, veered
o LIe runwuy IusL Wednesduy
wIen IL Iunded uL Yungon nLer-
national Airport.
L veered sIIgILIy o LIe run-
wuy on IundIng, beIore beIng
veered suIeIy buck Lo LIe run-
wuy, LIe SLruILs TImes quoLed
u SIngupore AIrIInes spokes-
man as saying.
TIe AIrbus Ao wus suId Lo
Iuve encounLered Ieuvy ruIn
wIen IL Iunded.
TIere were no reporLs oI In-
jurIes. TIe spokesmun suId LIe
uIrcruIL wus Lowed Lo LIe guLe
and all passengers disembarked
suIeIy.
SIngupore`s MInIsLer oI Mun-
power Tun CIuun-JIn wus on
LIe IgIL en rouLe Lo LIe zrd
ASEAN ubor MInIsLers MeeL-
Ing In Nuy PyI Tuw, cupILuI cILy
oI Myunmur.
L wus LIe IurdesL IundIng
`ve ever experIenced, Ie posL-
ed uL IIs Iucebook uccounL.
Tun uIso suId LIe crew wus
very proIessIonuI und reussur-
Ing despILe LIe sILuuLIon.
The airlines also said it had
seL u repIucemenL uIrcruIL Lo
Yangon to operate the return
SQqq; IgIL buck Lo SIngupore.
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Myanmar pro-democracy Leader Aung San Suu Kyi comforts a woman at Monywa
village, where the Chinese-backed copper mine Letpadaung is located. Two con-
tractors of the mining rm Wanbao who were kidnapped from the controversiaI
mine project area were reIeased by community activists, the company said.
S
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T
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/
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s
A plastic bottle making factory in an industrial zone in Yangon. The authorities said it will ensure round
the clock electricity for the industrial zones around Yangon.
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
11
Myanmar Summary
Contd. P 12...(Balancing Risk & Reward) Contd. P 12...(Balancing Risk & Reward)
Investing in Myanmar: Balancing Risk and Reward (Part I)
With the relaxation of legal impediments to doing business in Myanmar, the investor should consider the prevailing risks
and how to overcome them
C
onvenLIonuI wIsdom sug-
gesLs LIuL InvesLmenLs
in emerging markets can
provIde rIcI reLurns, compen-
suLIng Ior LIe IeIgILened IeguI,
reguIuLory, poIILIcuI und cuI-
tural risk assumed. Going one
sLep IurLIer, IL Is possIbIe LIuL
InvesLmenL In u Lrue IronLIer
murkeL, sucI us Myunmur, cun
oer LIe opporLunILy Ior even
greuLer rewurds. provIded LIuL
LIe InvesLor undersLunds LIe Io-
cuI Iundscupe und Ieurns Iow Lo
minimise the related risks.
The context
With a population that ex-
ceeds 6o mIIIIon, Myunmur (or
Burmu) Is LIe zqLI mosL popu-
Ious counLry on eurLI. L Ius LIe
IIgIesL IILerucy ruLe In SouLI-
east Asia and is rich in impor-
LunL resources, boLI mIneruI
and agricultural. The country is
experIencIng enormous growLI
compured Lo ILs neIgIbours,
wILI rIsIng IouseIoId Income
und IoreIgn dIrecL InvesLmenL
growLI oI o percenL yeur-over-
yeur. Moreover, Myunmur Ius
experienced a substantial rise in
voIume und prIce oI commodILy
und munuIucLured exporLs.
The ground rules
DespILe LIIs expIosIve growLI,
US suncLIons Iud, Ior u generu-
LIon, prevenLed US busInesses
Irom enLerIng LIIs murkeL. On
JuIy 11, zo1z, LIe DepurLmenL oI
LIe Treusury`s Omce oI oreIgn
Assets Control (OFAC) opened
Myunmur Ior US InvesLors by
ILs InILIuI modIhcuLIon oI LIe US
Eric Rose & Nina Dunn
Burmese suncLIons reguIuLIons
(1 CR PurL ;). AILIougI
vurIous resLrIcLIons remuIn,
OAC now permILs LIe grunLIng
oI LIe IoIIowIng IIcenses:
GeneruI Icense No.16 uu-
LIorIses LIe exporLuLIon oI US
hnuncIuI servIces Lo Myunmur,
subjecL Lo cerLuIn IImILuLIons
relating principally to human
rights risks and money launder-
Ing ucLIvILIes. More ImporLunL,
SecLIon 11 oI LIe PuLrIoL AcL
(PubIIc uw 1o;-6) no Ionger
uppIIes Lo LIe LrunsucLIons cov-
ered by G16 (see 1 CR secL.
1o1o.61(b)()). G16, LIougI,
does noL uecL LIe obIIguLIons
oI U.S. hnuncIuI InsLILuLIons
under the Patriot Acts section
1z regurdIng enIunced due
diligence.
GeneruI Icense No.1; uu-
LIorIses new InvesLmenL In My-
unmur, resLrIcLIng LrunsucLIons
wILI LIe Myunmur MInIsLry
oI DeIense, sLuLe or non-sLuLe
urmed groups (wIIcI IncIudes
LIe mIIILury), enLILIes owned or
conLroIIed by LIe IoregoIng, or
any person blocked under the
Burmu SuncLIons Progrum (so-
cuIIed SDNs).
GeneruI Icense No.1q uIIows
IndIvIduuIs, compunIes, und h-
nancial institutions to conduct
mosL LrunsucLIons wILI Iour oI
Myunmur`s mujor hnuncIuI In-
sLILuLIons wIIcI ure SDN-IIsLed.
Progmotic considerotions:
A sofetg net
WILI LIe reIuxuLIon oI IeguI
impediments to doing busi-
ness In Myunmur, LIe InvesLor
sIouId consIder LIe prevuIIIng
rIsks. und Iow Lo overcome
LIem. To begIn wILI, LIere Is
no bIIuLeruI InvesLmenL LreuLy
(BT) beLween LIe US und My-
unmur. BTs oer InvesLors
in certain emerging markets a
suIeLy neL, guurunLeeIng LIem
IuIr und equILubIe LreuLmenL,
proLecLIon Irom exproprIu-
LIon und so IorLI. TIe dIsLInc-
LIve IeuLure oI muny BTs Is un
uILernuLIve dIspuLe resoIuLIon
mecIunIsm, wIereby un Inves-
Lor wIose rIgILs under LIe BT
Iuve been vIoIuLed cun Iuve
recourse through international
arbitration.
WILIouL u BT, LIe US Inves-
tor in Myanmar has options
(and potential options). For
exumpIe, on ebruury 6, zo1q,
LIe ExporL-mporL Bunk oI LIe
UnILed SLuLes (Ex-m Bunk) un-
nounced ILs hnuncIuI supporL
Ior quuIIhed sIorL-Lerm und
medIum-Lerm US exporL suIes
Lo Myunmur. Ex-m Bunk`s ex-
porL credIL Insurunce provIdes
coveruge Ior boLI commercIuI
rIsks (sucI us buyer deIuuIL)
und poIILIcuI rIsks (sucI us wur).
AILIougI, uL presenL, LIese Iu-
cilities are extended to the My-
unmur governmenL progrums
or InsLILuLIons subjecL Lo sov-
ereIgn guurunLees, us weII us Lo
prIvuLe enLILIes wIIcI wIII secu-
rILIse LIe LrunsucLIon ouLsIde oI
Myunmur, IL Is expecLed LIuL, In
LIme, LIese sLrIngenL ruIes wIII
be relaxed.
n uddILIon, IL Is IIkeIy LIuL
OPC wIII soon provIde ILs pro-
LecLIons Lo LIe US InvesLor In
Myunmur. OPC Insurunce cun,
Ior exumpIe, mILIguLe LIe rIsk
oI poIILIcuI vIoIence, exproprIu-
LIon, ImpuIrmenL oI conLrucL
und resLrIcLIons on LIe conver-
sIon und LrunsIer oI IocuI-cur-
rency earnings.
Progmotic considerotions:
Proper execution
Proper execuLIon oI u Lruns-
action in Myanmar resembles
execuLIon eIsewIere, In LIuL
LIe InvesLor needs specIhc und
credIbIe IeguI udvIce boLI wILI
respecL Lo deuI provIsIons und
IocuI compIIunce requIremenLs.
CIeurIy, InvesLor proLecLIons
must be incorporated into the
reIevunL conLrucLs. And uppIIcu-
bIe IeveIs oI compIIunce musL be
understood and adhered to.
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~ , ~ . . .q...:~~ .~~ .:.
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_. . . . .:.~:. _., .:. ~ ~ .q:~
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Department of the Treasurys
OIfce oI Foreign Assets Control
(OFAC) . _.,.:.~:. ~..q~,
A true frontier market, such as Myanmar, can offer the opportunity for even greater rewards, provided that the investor un-
derstands the local landscape and learns how to minimise the related risks.
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
From page ;...(\ild Last)
From page ...(Balancing Risk & Reward)
From page ...(Balancing Risk & Reward)
From page ;...(\ild Last)
Some IndIvIduuIs hnd more
on LIeIr pIuLe LIun workIng In
LIe wrong posLcode. oreIgn In-
vesLors ure rIskIng IIgI sLukes
wIen operuLIng In Myunmur.
MosL operuLIons IeguIIy requIre
u IocuI purLner; IL Is LIereIore
ImperuLIve Lo cIoose LIe rIgIL
one. WILI IeguI proLecLIon Ior
IoreIgners vIrLuuIIy non-exIsL-
ent and seldom likely to stand
up In u courL oI Iuw, IL Is essen-
LIuI Lo Iuve u reIIubIe IocuI neL-
work.
On u cuILuruI noLe, LIe com-
pIexILIes oI Burmese socIeLy ure
so broad and singular that it is
ImpossIbIe Ior WesLerners Lo
IuIIy compreIend LIem. TrInI
T. T. P. oI YungonIIIe provIded
un InsIgIL noLIng LIuL IoreIgn-
ers need to respect and under-
sLund LIuL IIke IL or noL, LIIs
is Myanmars culture. Though
some uspecLs muy seem Irus-
LruLIng Lo u wesLerner, we
Iuve no rIgIL Lo usserL LIuL our
socIuI mores ure superIor. n-
sLeud, LIose wIo succeed In
Myunmur musL Iuve LIeIr eye
on LIe bIgger pIcLure, deuIIng
wILI sIorL-Lerm dIscomIorLs
und LIe pecuIIurILIes oI u coun-
Lry uwukenIng Irom hILy yeurs
oI IsoIuLIon.
L seems LIuL IuvIng LIe pu-
LIence oI u suInL, or uL IeusL u
BuddIIsL monk, Is u vILuI pre-
requIsILe Ior uny operuLIon In
Myanmar. Trinh added that one
musL muke LIe mosL oI LIe Io-
cuI cuILure by workIng wILIIn
IL InsLeud oI LryIng Lo resIsL IL,
something that should be noted
by uny prospecLIve InvesLor.
n spILe oI LIe uII LIe dImcuI-
LIes Iuced - LIe power ouLuges,
LIe cockroucIes, LIe surprIsIng-
Iy expensIve renLuI cosLs - noL
one oI LIe IndIvIduuIs spoke Lo
had any real regrets about com-
Ing Lo Myunmur. nsLeud, LIey
were druwn Lo LIe vusL opporLu-
nILIes, LIe cIurm oI LIe peopIe,
LIe encIunLIng monusLIc duwn
cIorus or muybe jusL LIe dun-
gerousIy cIeup IIquor.
TIougI sourcIng InIormuLIon
remuIns probIemuLIc Ior expuLs,
IIke mosL LIIngs In Myunmur, IL
Is ImprovIng IILLIe by IILLIe. TIIs
Is IurgeIy down Lo LIe work oI
enLIusIusLIc IndIvIduuIs dedI-
cuLed Lo creuLIng u IuLure Ior
LIemseIves und Ior Myunmur.
With elections coming next
year that could herald the big-
gest change to the country
sInce Independence, we ure
prIvIIeged Lo IIve In u nuLIon uL
u crossrouds In ILs deveIopmenL.
Though the path it may take is
uncerLuIn, IL seems LIuL no muL-
Ler wIuL your occupuLIon, work-
Ing In Myunmur Is, us expressed
by TrInI: u IuIhIIIng, IIIe en-
rIcIIng experIence.
Jonathan Harvey is from
London and he has been in-
terning at Consult Myanmar in
Yangon since February.
TIere ure requIremenLs, sucI
us unLI-corrupLIon Iuws und LIe
Export Administration Regu-
IuLIons, wIIcI ure gIobuIIy up-
pIIcubIe. TIere ure IImILuLIons,
sucI us bIuckIIsLs, wIIcI LIe
US governmenL Imposes on u
number oI counLrIes. TIere Is
counLry-specIhc reporLIng LIuL
LIe SLuLe DepurLmenL requIres
oI subsLunLIuI US InvesLors In
Myunmur. An InvesLor`s com-
pliance program should incor-
porate both the general and
counLry-specIhc reguIuLIons
und be udupLed Lo LIe sIze und
compIexILy oI u gIven busIness.
TIe reporLIng requIremenLs:
TIe SLuLe DepurLmenL Ius ImpIe-
menLed 'ResponsIbIe nvesLmenL
ReporLIng RequIremenLs` uppII-
cubIe Lo US persons wILI u new
InvesLmenL In Myunmur greuLer
LIun $oo,ooo In LIe uggreguLe,
or u new InvesLmenL oI uny vuIue
wILI LIe Myunmu OII und Gus
Enterprise. These annual reports
Iuve boLI pubIIc und US Govern-
menL non-pubIIc versIons und
uppIy Lo u wIde runge oI new
InvesLmenLs sucI us subsIdI-
urIes, joInL venLures, conLrucLs,
IruncIIses eL uI. TIe conLenL
oI LIe reporL IncIudes, umong
oLIer LIIngs: (1) un overvIew oI
Myanmar operations and sup-
pIy cIuIn, (z) poIIcIes und proce-
dures reIuLIng Lo Iumun rIgILs,
worker rIgILs, unLI-corrupLIon,
und envIronmenLuI Issues, () ur-
rungemenLs wILI securILy servIce
provIders, (q) poIIcIes und pro-
cedures used Lo ucquIre un InLer-
esL In reuI properLy, () hnuncIuI
dIscIosures, (6) communIcuLIons
wILI LIe Myunmur mIIILury or
oLIer urmed groups und (;) rIsk
mitigation practices.
TIrougIouL, LIe SLuLe De-
purLmenL requIremenLs ImpIy
u desIre Lo muke sure LIuL US
busInesses wIII, In IucL, conducL
LIemseIves 'responsIbIy,` ruLIer
than succumbing to the some-
LImes cIuoLIc prucLIces oI u
IronLIer murkeL. WILI LIese re-
quIremenLs, IL Is Ioped LIuL LIe
ImposILIon oI US sLundurds wIII
spreud Lo LIe murkeL generuIIy,
IIILIng uII Myunmur bouLs. TIe
requIremenLs pIuce u Ieuvy em-
pIusIs on LIe rIgILs oI LIe IocuI
popuIuLIon, wIeLIer us workers
or us Iundowners. TIey empIu-
sIze LIe ImporLunce oI conducL-
Ing due dIIIgence on, und uudIL-
Ing, securILy servIce provIders
In order Lo uvoId LIose wILI un-
uccepLubIe prucLIces or umIIu-
LIons. TIey specIhcuIIy usk Ior u
descrIpLIon oI gIobuI corporuLe
social responsibility policies.
SpecIuIIy desIgnuLed nuLIon-
uIs: OAC pubIIsIes u gIobuI
and continuously updated list
oI IndIvIduuIs und compunIes
wIose usseLs ure bIocked und
wILI wIom US persons ure gen-
eruIIy proIIbILed Irom deuIIng.
or Myunmur, LIe IIsLed per-
sons include those obstructing
LIe counLry`s poIILIcuI reIorm
process, LIose wIo Iuve com-
mILLed Iumun rIgILs ubuses,
LIose wIo Iuve enguged In
urms deuIs wILI NorLI Koreu
und LIose wIo Iuve u vurIeLy oI
direct or indirect relationships
wILI LIe ubove. n oLIer words,
cronIes. Or cronIes oI cronIes.
n u counLry recenLIy (und
rupIdIy) emergIng Irom LIe eI-
IecLs oI u repressIve regIme, IL
Is cIeur LIuL SDN-IIsLed per-
sons ure sLIII ucLIve purLIcIpunLs
in the nations business. For
LIe US compuny LIuL wunLs Lo
uvoId proscrIbed LrunsucLIons,
IL Is ImperuLIve Lo do due dIII-
gence on, or veL, prospecLIve
business associates. The recent
US enLrunL InLo Myunmur muy
hnd LIuL IL Is noL eusy Lo Lruce
IIsLory or reIuLIonsIIps oI pos-
sible blocked persons. Records
ure spurse, und In mosL cuses,
noL pubIIc. Numes ure conIus-
IngIy sImIIur.und noL neces-
surIIy consIsLenL ucross IumIIy
groups. orLunuLeIy, LIere ure
hrms In Myunmur IumIIIur wILI
LIe veLLIng process und crILerIu.
Eric Rose is the Lead Direc-
tor of Herzfeld Rubin Meyer
& Rose, the jrst US lcu jrm
in Myanmar. He focuses on
the global aspects of business
detelopment, specijccll in-
cluding mergers, acquisitions,
privatisations, technology
transfers, compliance counsel-
ling, and international com-
mercial transactions. His expe-
rience in Myanmar spans over
tuent ecrs.
Ninc Dunn, uho is cn cd-
viser to Herzfeld Rubin Meyer
& Rose, hcs more thcn tuent-
jte ecrs oj experience in in-
ternational trade and invest-
ment, securities and defence
and national security matters.
She hcs cdtised domestic cnd
international corporations
uith respect to c uide rcne oj
corporate issues, achieving fa-
vourable results from govern-
ment agencies, including the
US DDS, DDD, DD1 cnd SEC.
Pcrt II oj this crticle uill
discuss the on-the-ground
investment considerations in
Mcnmcr, its IDI lcu cnd re-
ulations, banking, and other
aspects of investment. The ar-
ticle ucs oriincll published
on InsideCounsel.com and has
been republished uith the cu-
thors and publications per-
mission.
People sit at a tea stall in downtown Yangon. One must make the most of the Burmese culture by working within it instead
of trying to resist it, something that shouId be noted by any prospective investor.
K
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M
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US President Barack Obama listens to a speech while President U Thein Sein is seen in the background. The US State Depart-
ment`s strict requirements for US rms to do business in Myanmar impIy a desire to make sure that US businesses wiII conduct
themselves responsibly in the former-pariah state.
S
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~:. _.,.:.. ..q, ._.:._..
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
Myanmar Summary
Thai Economy Shrinks More Than Expected
in Q1; Politicul Crisis Muy Cuose Recession
Orathai Sriring
T
hailands economy
shrank more than ex-
pecLed In LIe hrsL quurLer
us exporLs remuIned weuk und
domesLIc ucLIvILy wus buLLered
by monLIs oI poIILIcuI unresL,
uddIng Lo Ieurs LIe counLry Is
sliding into recession.
Gross domestic product
(GDP) conLrucLed z.1 percenL In
Junuury-MurcI Irom LIe prevI-
ous LIree monLIs und wus o.6
percent smaller than a year ear-
IIer, LIe sLuLe pIunnIng ugency
NESDB suId.
A ReuLers poII oI economIsLs
Iud IorecusL GDP In Junuury-
MurcI Lo sIrInk by 1.6 percenL
on LIe quurLer und Lo grow o.1
percent on the year.
The planning agency chopped
ILs zo1q GDP growLI IorecusL
Lo beLween 1. und z. percenL
Irom .o-q.o percenL.
TIuIIund Ius been wILIouL u
proper governmenL sInce IusL
December. TIe NESDB revIsed
ILs hgure Ior IourLI-quurLer
zo1 growLI Lo jusL o.1 percenL
Irom o.6 percenL, compured
wILI LIe prevIous quurLer.
Regionol loggord
ExpunsIon In LIe resL oI
SouLIeusL AsIu IIgIIIgILs LIe
poIILIcuI drug In TIuIIund: Mu-
IuysIu reporLed unnuuI growLI
oI 6.1 percenL In LIe hrsL quur-
Ler wIIIe ndonesIu, LIe IurgesL
economy In IronL oI TIuIIund,
grew .z percenL.
n LIe hrsL quurLer, prIvuLe
consumpLIon und InvesLmenL
growLI were worse LIun expecL-
ed, sIgnuIIIng LIuL LIe ImpucL
Irom LIe currenL poIILIcuI Im-
pusse on LIe economy muy Iuve
been greuLer LIun we LIougIL,
suId Gundy CuIyudI, un econo-
mIsL wILI DBS Bunk In SIngu-
pore.
CIunces ure we ure goIng Lo
see another technical recession
In LIe economy, gIven LIuL LIe
second-quurLer GDP number Is
IIkeIy Lo be ruLIer poor us weII,
suId CuIyudI, wIo now expecLs
zo1q IuII-yeur growLI oI Iess
LIun z percenL.
PubIIc secLor InvesLmenL IeII
1q. percenL In LIe hrsL quurLer
Irom u yeur beIore und prIvuLe
InvesLmenL IeII ;. percenL,
LIe NESDB suId, wILI overuII
spendIng down q.8 percenL.
Pressure on centrol honk
Now, pressure wIII Increuse
on the central bank to cut in-
LeresL ruLes uL ILs June 18 poIIcy
meeLIng. However, LIe mInuLes
oI LIe Bunk oI TIuIIund`s AprII
meeLIng, wIen IL IeIL LIe poIIcy
ruLe uL z percenL, suId LIe Iee-
wuy Ior eusIng wus IImILed und
LIe cenLruI bunk wus worrIed
about indebted households and
smuII hrms.
TIe weuker-LIun-expecLed
GDP duLu wIII puL LIe spoLIIgIL
buck on LIe Bunk oI TIuIIund,
suId BenjumIn SIuLII, un econo-
mIsL wILI JP Morgun In SIngu-
pore.
BuL wIen domesLIc ucLIvILy Is
beIng weIgIed down by IuIIIng
sentiment amid an uncertain
poIILIcuI envIronmenL, LIere Is
only limited support that mon-
eLury poIIcy cun provIde Lo LIe
economy, Ie udded.
TIuI consumer conhdence Is
uL u 1z-yeur Iow, LourIsLs ure
sLuyIng uwuy Irom Bungkok und
public spending has slumped.
Muny purLs oI LIe economy
ure IeeIIng LIe pIncI, even LIe
properLy secLor, wIIcI proved
resIIIenL durIng prevIous bouLs
oI unresL.
I LIe poIILIcuI crIsIs drugs on
unLII LIe end oI LIIs yeur, LIe
overuII secLor couId see u con-
LrucLIon oI us mucI us 1o per-
cenL, RuLL PIunIjpIund, cIIeI
execuLIve oI Iome buIIder QuuI-
ILy Houses, suId.
The political turmoil is also
hurting Thailands big auto sec-
Lor, wIIcI uccounLs Ior 11 per-
cenL oI GDP und Is LIe IurgesL
In SouLIeusL AsIu. DomesLIc
cur suIes ure IuIIIng und some
o,ooo IndusLry jobs Iuve been
lost his year.
TIuI AIrwuys reporLed u quur-
terly loss recently and expects
more red ink in the second and
LIIrd quurLers us we Iuve been
severeIy uecLed by LIe poII-
LIcs, CIuIrmun PrujIn JunLong
said.
Big hit on tourism
TourIsm uccounLs Ior ubouL
1o percenL oI GDP und vIsILors
dropped ubouL percenL In Jun-
uury-AprII Irom u yeur eurIIer.
TIIs monLI, LIe TourIsm Au-
LIorILy oI TIuIIund cuL ILs Iore-
cusL Ior zo1q LourIsL urrIvuIs Lo
z6. mIIIIon, LIe IowesL In hve
yeurs, Irom z8 mIIIIon.
TIe NESDB suId IoLeI occu-
puncy In LIe hrsL quurLer sLood
uL 6o. percenL uguInsL ;z.1
percent in the same period last
year.
Some unuIysLs expecL exporLs,
wIIcI ure equIvuIenL Lo more
LIun 6o percenL oI GDP, Lo pIck
up on LIe buck oI u gIobuI recov-
ery. So Iur, LIe poIILIcuI unresL
has been largely contained to
Bungkok und Ius noL dIsrupLed
porLs und IucLorIes.
BuL LIe sLuLe pIunnIng ugen-
cy cuL ILs projecLIon Ior exporL
growLI LIIs yeur Lo .; percenL
Irom un eurIIer .o-;.o percenL.
n Junuury-MurcI, exporLs
IeII o.8 percenL Irom u yeur eur-
IIer und ubouL o. percenL Irom
LIe prevIous LIree monLIs, cen-
LruI bunk duLu sIowed. Reuters
Japan Court Rules Against Nuclear
Restart for First Time
Wai Linn Kyaw
A
Japanese court ruled
uguInsL uIIowIng LIe re-
sLurL oI u nucIeur power
pIunL wesL oI Tokyo, NHK TeI-
evIsIon suId, LIe hrsL LIme LIuL
unLI-nucIeur pIuInLIs Iuve suc-
cessIuIIy sued Lo sIuL down u re-
ucLor In more LIun Iour decudes
oI uLomIc power In LIe counLry.
TIe courL In ukuI preIecLure
ruIed uguInsL uIIowIng KunsuI
EIecLrIc Power Co Lo resLurL re-
actors at its Ohi nuclear plant.
PIuInLIs were seen on LeIevI-
sIon ceIebruLIng LIe courL vIc-
tory.
OII, IIke uII oI Jupun`s nucIeur
pIunLs, Ius been IdIed Ior suIeLy
cIecks In LIe wuke oI LIe zo11
dIsusLer uL Tokyo EIecLrIc Pow-
er Cos Fukushima Daiichi plant
pendIng suIeLy cIecks.
The court ruling is likely to be
unoLIer spunner In LIe works
Ior LIe reLurn Lo operuLIons oI
reucLors, wILI LIe suIeLy cIecks
bogged down by puperwork und
dIspuLes over InLerpreLIng new
guidelines.
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.,.,.:._.._e.._.
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~_e._.. NESDB ~.,_e ,.-
~~, .~~ .....~~.~~.~:.
e. . . .....~ . . .e ~: . _
... ~ q:..,.. ._... '
q:..,.. _..._.:...._.
Members of the media and Tokyo Electric Power Co. (Tepco) employees wearing
protective suits and masks walk past storage tanks for radioactive water in the H4
area at the Fukushima Dai-ichi nuclear power plant in Okuma, Fukushima Prefec-
ture, Japan.
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A tourist asks for directions from a Royal Thai Army soldier in central Bangkok. Thailands army chief imposed martial law on
May 2U after more than six months of poIiticaI turmoiI. Foreign arrivaIs dropped 4.9 percent in the rst four months of 2U14
from a year earlier to 8.62 million, according to the Thai Department of Tourism.
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_:,. ._~_:.._~~~ .~..
e:.., ~ . ~q:.. .:.~.,_e
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.~. .e:..~ , . ~ . . .. q, ..
..~_~. ~q:.... .~:_._..
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q . . .~: _. _. .~~ ~ .~:
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
POSCO CEO Says May Consider Stake Sale
in Daewoo International
Hyunjoo Jin
S
outh Korean steelmaker
POSCO suId IL muy con-
sider selling a stake in its
prohLubIe LrudIng und resourc-
es urm Duewoo nLernuLIonuI
Corp us purL oI u resLrucLurIng
pIun uImed uL sIorIng up ILs h-
nances.
POSCO, weIgIed down by
Ieuvy debL und LIree consecu-
LIve yeurs oI decIInIng prohL, Is
joInIng overseus peers IIke Ar-
celorMittal and ThyssenKrupp
In LryIng Lo weuLIer u downLurn
in the industry as global de-
mund Ior sLeeI sLugnuLes.
TIe worId`s hILI IurgesL sLeeI-
muker uIso suId IL wouId cuL ILs
InvesLmenL budgeL by ubouL Lwo
LIIrds by zo16 wIIIe uImIng Lo
sIgnIhcunLIy boosL ILs EBTA
und prohL by LIuL yeur.
POSCO`s sLruLegy Ius been
so Iur Iocused on expunsIon, buL
LIose duys Iuve gone, CIIeI
ExecuLIve Kwon OI-joon LoId
an analysts meeting.
AII busInesses ure subjecL Lo
resLrucLurIng. Duewoo nLer-
nuLIonuI Is no excepLIon, Ie
added.
Duewoo nLernuLIonuI Is Ko-
reu`s IurgesL LrudIng compuny,
wILI busInesses IncIudIng re-
source deveIopmenL. Duewoo,
wIIcI uIso operuLes gus heIds In
Myunmur, posLed u q percenL
jump In ILs operuLIng prohL In
LIe hrsL quurLer oI LIIs yeur.
Morket dounturn
Global steel producers are
weIgIed down by un oversuppIy
oI sLeeI und reduced cusLomer
demund, especIuIIy Irom CIInu,
LIe worId`s bIggesL consumer
und producer oI sLeeI.
Kwon, wIo Look omce In
MurcI, Ius dIsLunced IImseII
Irom IIs predecessor CIung
Joon-yung, wIo speurIeuded
mujor InvesLmenLs und ucquIsI-
LIons In POSCO, IncIudIng LIe
$. bIIIIon purcIuse oI Due-
woo nLernuLIonuI In zo1o de-
spILe LIe IndusLry downLurn.
TIe spendIng spree Ius IeIL
LIe sLeeI gIunL wILI u debL bur-
den that has more than doubled
over LIe pusL Iour yeurs und
Ied Lo u serIes oI ruLIng cuLs by
Moody`s, S&P und ILcI.
Kwon suId LIe sLeeImuker
wouId scuIe buck ILs sLukes In
some umIIuLes und exIL non-
core busInesses, wIIIe seekIng
Lo IIsL some oI ILs umIIuLes on
the domestic bourse.
The company has more than
qo umIIuLes, und Kwon decIIned
Lo specIIy resLrucLurIng pIuns,
suyIng LIey ure under revIew.
We ure IookIng uL vurIous
possibilities regarding Dae-
woo nLernuLIonuI. NoLIIng Ius
been decIded yeL, Ie suId.
POSCO pIuns Lo cuL ILs unnuuI
InvesLmenL Lo z.q LrIIIIon won
In zo16, Irom 8.8 LrIIIIon won
In zo1.
POSCO uIso suId IL uIms Lo
boosL ILs EBTA Lo 8. LrII-
IIon Koreun won In zo16, Irom
.; LrIIIIon won In zo1, wIIIe
boosLIng ILs operuLIng prohL Lo
LrIIIIon Koreun won ($q.88
billion) on a consolidated basis
Irom LrIIIIon durIng LIe pe-
riod.
WIIIe IocusIng on core, sLeeI
busIness, IL wIII nurLure IILII-
um, nIckeI, IueI ceII und cIeun
couI us new growLI engInes,
Kwon suId.
L Is very cIuIIengIng Lo
ucIIeve ILs EBTA und prohL
LurgeLs, unIess LIe sLeeI mur-
keL Improves sIurpIy, suId ee
Won-jue, un unuIysL uL SK Secu-
rities. Reuters
Myanmar Summary
Myanmar Summary
Indonesiu's IndoIood Iyes 1o-opc Revenoe Growth, Asiu Ixpunsion
Fathiyah Dahrul &
Eveline Danubrata
P
T ndoIood Sukses Muk-
mur, ndonesIu`s bIggesL
InsLunL noodIe muker,
uIms Ior 1o-zo percenL growLI
In revenues LIIs yeur, IeIped by
ILs ucquIsILIon oI vegeLubIe pro-
cessor CIInu MInzIong ood
Corp Ld , IL suId.
The company is also targeting
cupILuI expendILure oI q.6 LrII-
IIon rupIuI ($88.8 mIIIIon),
uround 6o percenL IIgIer LIun
u yeur eurIIer, Lo buIId more Iuc-
LorIes und expund In AsIu, om-
cIuIs LoId reporLers uL u brIehng.
ndoIood, wIose murkeL vuIue
Is uround $.q bIIIIon, posLed
revenues oI ;.; LrIIIIon rupIuI
In zo1, up 1 percenL Irom LIe
prevIous yeur.
TIe muIn reuson wIy we ure
expundIng overseus Is becuuse
In LIe Iong Lerm, LIere Is u IoL oI
knowIedge und know-Iow Irom
other countries that cannot be
Iound In ndonesIu. TIere ure
uIso muny good usseLs In ndo-
nesia that are not being released
by LIeIr owners, PresIdenL DI-
recLor AnLIonI SuIIm suId.
n LIe pusL Iew yeurs, ndo-
Iood Ius Iormed joInL venLures
In BruzII, CIInu, LIe PIIIIppInes
und Jupun. BuL SuIIm decIIned
Lo dIscIose specIhc counLrIes
wIere IL pIuns Lo expund nexL.
usL yeur, ndonesIun compu-
nIes mude 11 ucquIsILIons over-
seus vuIued uL u LoLuI $1.1 bII-
IIon, down Irom z deuIs worLI
$z.8 bIIIIon In zo1z.
Deals announced in the past
Iew weeks, Iowever, couId poInL
Lo u pIck-up In corporuLe ucquIsI-
LIons. SLuLe energy hrm PT Per-
tamina said it is planning to buy
mosLIy overseus oII und gus usseLs
to help raise its output.
SLuLe gus uLIIILy compuny Pe-
rusahaan Gas Negara said re-
cenLIy IL Is ucquIrIng u 6 per-
cent participating interest in
u US bIock Ior $1; mIIIIon.
PT Semen ndonesIu, ndone-
sIu`s bIggesL cemenL producer,
ugreed Lo buy u sLuke worLI
ubouL $o mIIIIon In u cemenL
maker in Myanmar. Reuters
.~:~q.e:..~..~...q.
POSCO . ~ . ~ -_:.q...: .
.~~~ _.,.__..._~.~.
~q ,.-.~.~,.e.q.~.~
~.._e.._ Daewoo International
Corp -qee:~:. ~.q:.q,q
._~:. ._.:_~:..._.
POSCO ~.,_e .....~~~
~_.~~.._.. ._~._._..,:.:.
. _~ .~ .,q_. . . _.:.~ . ~ .:._e.
..: ArcelorMittal ThyssenKrupp
~. ....|.~: ~.:.~....,.
.q:.~:.~...~:. ~:.~,.
q, ....:.~q._.
~. : . .~_~ .. ..~ .. ~ . . .q.
. . , .. ~~' ~ , .-q .. ._. . .
. ......~:. ..:..__e._..
EBITA ~:. _. ~ ~: ~. .|. . ~
~_.~~.,.qqq, ....:.__e.
._~:. .q._.
Daewoo International ._ ~q.
e:.- ~_~ .. .~ , . e .q.~ . ~
~.._e._.. ~q.~_..e_e.~.~~
.q.~.|~~ . .. :..q.. . , .. :.. .
~ .~ q ._ .Daewoo ._ _., .:
. ~ ._ . .:~.:~ . . . , .
.:. ..~.~q_.. e... ..
....~~~. ..,.~_.~._
, q:. . , .~ .~~ . ._~: . . q._ .
~ . , .q :.-~_~ .. .~. .:...|~ .
~...q...,. PT Indofood
Sukses Makmur ~.,_e ~,~
e .. .e .q ~ ~ . . .q.. . , .
China Minzhong -~~~__e
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Poscos steel mill in Pohang, South Korea.
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
Indias Modi The New Hope for Gold, But May Disappoint
Clyde Russell
G
oId buIIs Lend Lo IL Irom
one thing to the next in
LIeIr seurcI Ior u reuson
Ior LIe precIous meLuI Lo ruIIy,
wILI LIe IuLesL Iope beIng Nur-
endru ModI`s eIecLIon vIcLory In
ndIu.
The reasoning appears solid
enough. Modis pro-business
BIuruLIyu JunuLu PurLy Is IIkeIy
Lo roII buck some oI LIe LougI
meusures Luken by LIe Iormer
governmenL Lo curLuII goId Im-
porLs us purL oI eorLs Lo Iower
ndIu`s currenL uccounL dehcIL.
GoId Is ndIu`s second-bIggesL
ImporL by vuIue beIInd crude
oII und LIe Iormer governmenL
progressIveIy ruIsed LIe ImporL
duLy Lo 1o percenL und Imposed
u ruIe LIuL zo percenL oI goId
shipped in must be re-exported
us jeweIIery.
TIese meusures, wIIcI goId
bulls had largely dismissed as
IrreIevunL Lo ndIun demund,
served Lo cruncI ImporLs, wIIcI
sLurLed droppIng sIurpIy Irom
LIe LIIrd quurLer oI IusL yeur.
ndIun demund IeII z6 per-
cenL Lo 1qo. Lonnes In LIe hrsL
quurLer oI zo1q Irom LIe sume
perIod u yeur eurIIer, uccordIng
Lo duLu Irom LIe WorId GoId
Council (WGC).
TIIs IoIIowed IuIIs oI 16 per-
cenL In LIe IourLI quurLer oI
zo1 und z percenL In LIe LIIrd
quurLer oI IusL yeur, decIInes
wIIcI suw ndIu surrender ILs
sLuLus us LIe worId`s Lop goId
consumer to China.
One thing the gold bulls may
Iuve correcL Is LIuL ndIun de-
mund Is sLIII LIere, und IL Ius
jusL been IIL by governmenL In-
LervenLIon. TIe key quesLIon Is
Iow quIckIy Is ModI`s new gov-
ernmenL IIkeIy Lo Iower LIe Im-
port duty or relax the re-export
requIremenL?
WIIIe ModI muy weII be weII
dIsposed Lo LIe goId secLor, Ie`s
IIkeIy Lo be swumped wILI oLIer
prIorILIes uL LIe sLurL oI IIs ud-
ministration.
Hes also likely to be reluctant
Lo gIve u sIgnuI LIuL IL`s gume
on Ior goId ImporLs uguIn, us
Ie won`L wunL LIe currenL uc-
counL dehcIL Lo sLurL IeudIng
LIe wrong wuy once more.
ndIu`s currenL uccounL dehcIL
wus IIkeIy ubouL $ bIIIIon In
LIe hscuI yeur ended MurcI, LIe
Iormer hnunce mInIsLer suId on
MurcI 1, Iower LIun LIe $88
bIIIIon Ior LIe prevIous yeur.
At the current spot gold price
oI ubouL $1,zqq un ounce, eucI
uddILIonuI 1oo Lonnes oI goId
ImporLs udds ubouL $q.6 bII-
IIon Lo LIe currenL uccounL deh-
cit.
I LIe hrsL quurLer demund oI
1qo. Lonnes wus muInLuIned
LIrougI LIe yeur, IL wouId Luke
LoLuI demund Ior LIe yeur Lo
ubouL ;61.z Lonnes, sIorL oI
LIe qoo-1,ooo Lonnes LIe WGC
expecLs Ior ndIun demund In
zo1q.
Assuming Modi does relax
restrictions on bullion and the
WGC IorecusL Is meL, LIe ImpucL
oI uddILIonuI ndIun demund Is
IIkeIy Lo be IeIL In LIe IusL quur-
Ler oI zo1q.
Even II ndIu`s demund does
recover Lo uround 1,ooo Lonnes
In zo1q, wIII LIuL be enougI Lo
spurk u ruIIy?
GoId Ius guIned ;. percenL
so Iur In zo1q, reversIng some
oI ILs z6.q-percenL decIIne In
zo1. BuL uILer reucIIng ILs IIgI
oI $1,q1.;6 un ounce on MurcI
1;, IL Ius sIIpped Lo u cIose oI
$1,zq.8o on Muy zo und Ius
Lruded In u reIuLIveIy nurrow
bund In LIe IusL Lwo monLIs.
OuLsIde oI LIe poLenLIuI Ior
Increused ndIun demund, LIere
uppeur Iew posILIve drIvers Ior
gold.
TIe WGC reporL sIowed LIuL
demund Irom excIunge-Lruded
Iunds wus IurgeIy uL In LIe
hrsL quurLer, und wIIIe LIIs Is
un ImprovemenL Irom LIe Iuge
seIIIng seen IusL yeur, IL`s IurdIy
reuson Lo beIIeve u ruIIy Is Im-
minent.
TecInoIogy demund, wIIcI
uccounLs Ior ubouL 1o percenL oI
LoLuI consumpLIon, dropped In
LIe hrsL quurLer Irom LIe sume
perIod u yeur eurIIer, und LIe
WGC poInLed Lo rIsIng use oI uI-
LernuLIves In eIecLronIcs munu-
IucLurIng.
CenLruI bunk purcIuses were
uIso down In LIe hrsL quurLer,
und uppeur Lo Iuve seLLIed In u
runge eILIer sIde oI 1oo Lonnes
u quurLer, u IeveI LIuL wouIdn`L
provIde mucI prIce ImpeLus In
either direction.
The gold market appears
IurgeIy In u wuIL-und-see
mode, IuckIng sumcIenL drIvers
Lo move LIe prIce.
ncreused ndIun demund,
A shopkeeper waits for customers at his goId and siIver jeweIIery shop in the oId quarters of BeIhi. Modi`s pro-business
Bharatiya Janata Party is likely to roll back some of the tough measures taken by the former government to curtail gold im-
ports as part of efforts to Iower India`s current account decit.
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sIouId LIe new governmenL
uIIow IL, wIII be u posILIve, buL
probably not enough to spark
u sIgnIhcunL prIce recovery by
ILseII.
Clyde Russell is a Reuters col-
umnist. The tieus expressed
cre his oun.
~.e~ Narendra Modi -
.q ..~:~ . ~. q.:._ ~..'~
.q.q:.~e.~.,_e ~._.:.~.
_ e. .:q, ~~ ~ ..: . .~ .:.
_.~~.~q._.
~. .|._eq ..~ .: . .:.~ q
._. Modi - Bharatiya J anata
Party ~.,_e e. ~. .q- .q ~ .
. ~:. , ... :.._ ~..'~
._.: .. . .:. . . ..: _. .~:._e
~.e- .._...:.~:. ..:~q,
. . ..: ._ e ..: . :._~._ .
.q._ .q,..._... ~.e-
. ~ e~_~ .. .. ~ , . . , .~. . _e. _. .
e.~..q.~~~~. .q~.
.,.:.~:. ~~ q:..,.. ~._..
~: ..e.q._~:._e .q~..
- ~ q:..,.._ .~~~q~,:
~.,_e . q._ e ._ ._ .. .~. q.
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~..|._.~...~.:.._~: .q
..,.._ ~.e- ...~~.~.
.~. .~..:_...q .~:
.q ~ . . . :.._ ._ . e. . .
~~e....~..~~: ...:
.:..: ~.:. ._ .~. : .q .~: .
(WGC) - .:q..:.~q ~.e-
.q ...~ ~ .~: .. . ._ ~~, . . .
......~~~. e...~
' q:..,. ~~ ... , ~,
..:~.:.._~:. .~qq._.
~~, . . . -.~ ~ .....~ ~~ .
~' q:..,. ~..._.. e...
~~e....~~ , q:..,.
~...._~~~ ~.e~.,_e
,.-~.:.~,..,q:~:. ~,~
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
16
Australias Conservative Government Battered over Austerity Budget
Consumer confdence fgures expected to take hit; 48 percent of voters say budget bad for Australia
S
upporL Ior AusLruI-
ian Prime Minister
Tony Abbotts con-
servuLIve governmenL Ius
coIIupsed IoIIowIng LIe
reIeuse oI un uusLerILy
budget that has embold-
ened opponenLs und even
spurked cuIIs Ior eurIy
elections.
TIe governmenL re-
leased a contentious
budgeL pucked wILI de-
reguIuLIon moves, new
IevIes und spendIng cuLs
uImed uL overcomIng
wIuL IL cuIIs unsusLuInu-
bIe dehcILs LoLuIIIng A$6o
bIIIIon ($6 bIIIIon) over
LIe nexL Iour yeurs.
TIousunds oI proLesLers
Look Lo LIe sLreeLs oI Aus-
tralias biggest cities at the
weekend Lo ruII uguInsL LIe
cIunges Lo weIIure, IeuILI-
cure, educuLIon und pen-
sions that they say outstrip
LIe munduLe AbboLL won In
elections last year.
WILIIn u very sIorL
perIod oI LIme Ie Ius eI-
IecLIveIy Lurned uround Lo
LIe peopIe wIo voLed Ior
Matt Siegel
IIm und suId 'SLu you`,
Greens Party deputy lead-
er Adum BundL LoId Reu-
ters.
The polls suggest that
Is noL goIng down uL uII
weII wILI voLers. TIere Is
only so long an already
unpopular prime minister
cun suer IurLIer bIows,
noL jusL Lo IIs popuIurILy,
buL Lo IIs governmenL`s
supporL.
Two poIIs In LIe wuke
oI LIe budgeL, one by
Nielsen and the other by
NewspoII, sIowed u pre-
cipitous drop in the popu-
IurILy oI AbboLL und LIe
Liberal-National coalition
he leads.
BoLI sIowed LIuL ubor
wouId IundIIy wIn IresI
eIecLIons, u sIurp reversuI
Ior u purLy LIuL wus onIy
recenLIy LurIed Irom om ce
uILer sIx LumuILuous yeurs
In power.
PerIups mosL worryIng
Ior LIe governmenL, Iow-
ever, Is LIe percepLIon
that it has stumbled badly
In IrumIng u budgeL LIe
polls say is seen as both
disproportionately pun-
ishing the poor and bad
Ior LIe economy.
LIInk peopIe don`L
IIke LIe medIcIne, und LIe
governmenL Ius sLoked
up LIe bud reucLIon Ior
LIemseIves uImosL umu-
LeurIsIIy und now ure
coppIng IL, JoIn Wunnu,
u proIessor oI poIILIcs uL
the Australian National
UnIversILy, LoId ReuLers.
TIe Greens Iuve now
pubIIcIy cuIIed Ior eurIy
eIecLIons, und BundL suys
Ie Is IopeIuI LIuL boLI
Labor and mining mag-
nuLe CIIve PuImer, wIose
PuImer UnILed PurLy wIII
Iuve LIe buIunce oI power
In LIe IncomIng SenuLe,
wIII IeIp Lo brIng LIuL
about.
Abbott had raised re-
cenLIy LIe prospecL oI un
eIecLIon II IIs budgeL wus
bIocked, buL Ie seemed Lo
ruIe LIuL ouL In LIe wuke
oI LIe poIIs.
My job Is noL neces-
surIIy Lo wIn u popuIurILy
conLesL. My job Is Lo run
LIe counLry eecLIveIy,
und LIuL`s wIuL `m goIng
Lo do my besL Lo do, Ab-
bott told the Australian
BroudcusLIng Corporu-
tion.
The budget is likely to
IurLIer denL consumer
conhdence, wIIcI couId
be reecLed In consumer
senLImenL duLu, suId SLe-
pIen WuILers, un unuIysL
wILI JP Morgun.
Consumer conhdence,
uIreudy Iow und IrugIIe,
wIII IIkeIy decIIne IurLIer
Myanmar Summary
MiTA MyanmarInvestment, Trade and Technology Conference, Workshop & Exhibition
1ocilitoting 1oreign 1noestments & Empouering Locol
Mgonmor Componies
ONLINE REGISTRATION is nowopen for Delegates, Exhibitors &Sponsors:
http://myanmarconferencesexhibitionsworkshops.MyanmarInvestmentBusiness.com
To organize and manage this conference, MiTA is drawing on its experience and network in providing investment
advisory, management consultingandengineering servicesin Myanmar since 2009.
Each of these events will be unique and different.
Main Conference@UMFCCI Building, Level 2, Main Hall, Yangon, Myanmaron 21
st
June, 2014
Programfor Accompanying Persons: 21
st
June, 2014(Yangon City Tour); Golf: 22
nd
June, 2014
Business Match Making: 23
rd
June, 2014 & Workshops: 23
rd
June, 2014
Why ParticipateinMiTA Myanmar Investment, TradeandTechnologyConference?
This conferenceis uniqueanddifferentfromanyother conferences.
Since2009, MiTA - the Conference Organizer - is providing consultingservices for Investments in
Myanmar. MiTA is uniquely well placed to assist and support foreign organizations in following up on
Myanmar tenders,investment and business opportunities that will ensue fromthese conferences.
Networking&One-to-OneBusiness MatchmakingTheKeyDifferentiators
Almostequal mixof Myanmar &foreigndelegates
Based on the requests of Delegates / Sponsors / Exhibitors a select list of Myanmar companies will be
invited to participate in this Myanmar Investment, Trade and Technology Conference.
Onrequests, one-to-oneprivatebusiness meetings will beorganizedto helpfind: Distributors /
Agents, Local Myanmar Partner for JVinvestment in Myanmar; and vendors, suppliers, etc.
Follow-uponyour prospectivebusiness inMyanmarPartner ontheground
On mutual agreement, MiTA Myanmar @ ISBC can follow-up on the business & investment
opportunities that may ensue fromthis conference, workshop & exhibition.
Key Discussions Points Learn fromExperts on Myanmar Market
InvestmentLaws &Regulations:Doing Business in Myanmar Is there any Black Boxes?
DueDiligence:Risk Opportunity Analysis, Security Issuesand Evaluating JV Partners.
Environmental Management, Reputation &Brand Management IEE, EIA, EMP, SIA andCSR.
ManagingFinances,Bankingand Repatriationof Profitwhile doing business in Myanmar.
Analysis of Business Opportunities 9Business Sectors:
(1) Education & Training, (2) Environmental Management (3) Medical & Health Care, (4) Oil & Gas
and Energy, (5) Infrastructure Development & SEZs, (6) Investment in Real Estate & Property
Development, (7) Banking, Finance & Insurance, (8) Telecommunication, IT & IT Enabled Services
(ITES), and (9) Agriculture&Irrigation.
THE CONFIRMEDLIST OF SPEAKERS INCLUDES (Visitwebsitefor completeList):
1. H.E. Ms. Ann Ollestad, Ambassador, The Royal Norwegian Embassy, Myanmar
2. H.E. Maj. Gen. (Retd.) Anup KChakma, Bangladesh Ambassador to Myanmar
3. U Aung KyawHtoo, Deputy Director, EPD, Ministry of Energy, Myanmar
4. U Aung Naing Oo, Director General, DICA, Myanmar
5. Daw Aye Aye Hla, Director, Transport Planning Dept. / International Relation, Railway
6. Mr. Boon Intiratana, Minister Counselor (Commercial), Royal Thai Embassy, Myanmar
7. H.E. Mr. GautamMukhopadhaya, Ambassador, Indian Ambassador to Myanmar
8. Dr. George Soe Win, Senior Consultant, Banking &Investment, Myanmar
9. U Hla Maung Thein, Deputy Director General, Environmental Conservation Department
10. Dr. Htin Paw, CEOof Sakura Hospital, VPof Myanmar Private Hospital Association
11. Dr. Junichi Yamada, Sr. Special Advisor, Japan International Cooperation Agency (JICA)
12. Prof. Kyaw Myint Naing, Ex. Chairman of Myanmar Medical Council & MMA
13. Mr. Liew Chee Seng, Deputy Managing Director, CBBank, Myanmar
14. Dr. Maung Maung Lay, Vice President, UMFCCI, Yangon, Myanmar
15. Prof. Myint Han, Director General, Department of Foodand Drug Administration (FDA)
16. Dr. Rai Mra, President, Myanmar Medical Association(MMA)
17. H.E. Mr. Roland Kobia, Ambassador, Delegation of the European Union in Myanmar
18. U San Thein, Leading Professional, Financial Sector Development, Myanmar
19. Dr. Than Htut, General Manager, Health Channel, Shwe Than Lwin Media Co. Ltd.
20. U Than Maung, Principal Legal Manager (Kelvin Chia), Member of the "Commission for
Assessment of Legal Affairs and Special Issues" - Pyithu Hluttaw(Myanmar Parliament)
21. U Thein Lwin, Member of Parliament (Pyithu Hluttaw), Government of Myanmar
22. U Win Khaing, Chairmanof UE, Member of Myanmar Investment Commission (MIC)
23. H.E. UWynn Lwin, Ambassador (retired), Government of Myanmar
24. Dr. ZawWin - Director General, Department of Technical and Vocational Education
ContactPhoneNumbers:
Myanmar: +95 9420 110451, +95 9420 110666
Singapore: +65 6866 1430
Email: conference@mitaservices.com.sg
uILer LIe unnounced In-
come Lux rIses, weIIure
cuLs, und resumpLIon oI
peLroI Lux IndexuLIon, Ie
said.
The drag on consumer
conhdence wIII muke LIe
roLuLIon In LIe sources oI
growLI In LIe economy
uwuy Irom mInIng InvesL-
menL more probIemuLIc.
Reuters
A dog walks past a poster for Opposition Leader Tony Abbott outside a polling station in Sydney. Within
a very short period of time he has effectively turned around to the people who voted for him and said
'Stuff you`, Creens Party deputy Ieader Adam Bandt toId Reuters.
B
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~ , .:.-.~. ~. .q~.,_e
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. ._. ._.~:.q.~ ~ ~
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~...~q_.. .q..~:~.
..:... :..'e ...q, . .~:..
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
Myanmar Summary
LS Nuvy Petty Om cer Pleuds Goilty
in Corruption Scandal
Marty Graham
A
US Nuvy peLLy om cer
cIurged In u wIde-rung-
Ing corrupLIon InvesLI-
guLIon oI u SIngupore-bused de-
Iense conLrucLor pIeuded guIILy
to conspiracy to commit bribery
In u cuse In IederuI courL In CuII-
IornIu, prosecuLors suId.
Nuvy PeLLy Om cer IrsL CIuss
Dan Layug admitted accepting
gIILs oI cusI, eIecLronIcs und
luxury hotel stays in exchange
Ior provIdIng InIormuLIon on
Nuvy sIIp scIeduIes Lo GIenn
DeIense MurIne AsIu, LIe com-
As Gus Ilows, Ixxon's $1q-b PNG Plunt Still Iuces Risks
Matt Siegel
E
xxonMobII`s $1q-bII-
IIon IIquehed nuLuruI gus
(NG) projecL In Pupuu
New GuIneu, wIIcI Is sIIppIng
ILs hrsL curgo, Is seL Lo drumuLI-
cuIIy LrunsIorm one oI AsIu-Pu-
cIhc`s mosL unsLubIe counLrIes,
Ior beLLer or Ior worse.
TIe NG venLure, wIIcI Is
expected to produce more than
q LrIIIIon cubIc IeeL oI gus over
o yeurs, Is LIe IurgesL prIvuLe
InvesLmenL In LIe SouLI PucIhc
nations history.
ExxonMobil is relying on
projecLs IIke LIIs one Ior mucI-
needed producLIon growLI,
wIIIe LIe Pupuu New GuIneu
governmenL Iopes IL mIgIL
doubIe ILs $1-bIIIIon economy,
now sIIgILIy Iurger LIun BoL-
swunu`s.
BuL sIurIng LIe spoIIs oI re-
source projecLs Ius prevIousIy
torn apart a country that is seen
us one oI LIe mosL corrupL In
LIe worId, und wILI u poIILIcuI
sysLem LIuL produced Lwo rIvuI
governmenLs cIuImIng Lo be In
cIurge Ior mucI oI zo1z.
And us LIe hrsL curgo oI cIeun-
burning LNG is shipped to Ja-
pun, LIe governmenL Ius yeL Lo
IuIIy IdenLIIy wIIcI Iundowners
wIII receIve royuILIes, u crILI-
cal holdup that has raised the
specLre oI unresL In LIe Impov-
erIsIed IIgIIunds wIere IocuIs
ure unxIousIy uwuILIng u IIsLor-
Ic wIndIuII.
TIe bIg quesLIon now Is
wIeLIer LIe projecL wIII prove
Lo be u bIessIng or u curse, suId
BryunL AIIen, un experL on Pup-
uu New GuIneu uL LIe AusLruI-
Iun NuLIonuI UnIversILy, wIo
IeIped Exxon In IdenLIIyIng und
compensuLIng uecLed Iund-
owners LIere.
I LIe Pupuu New GuIneu
governmenL couId hnd u wuy Lo
geL LIose Iunds Lo ow buck InLo
the education system and back
InLo LIe IeuILI sysLem und hx
up uII LIose scIooIs, LIIs couId
be IunLusLIc Ior PNG, Ie suId.
BuL jusL don`L see IL Iuppen-
Ing uL LIe momenL.
OLIer resource projecLs In
Pupuu New GuIneu Iuve prevI-
ousIy sLIrred vIoIence or even
cIvII conIcL, und even wIen
up and running there is a risk
oI money beIng squundered or
pockeLed by om cIuIs.
A copper mine once operated
by Rio Tinto became a central
issue in a bloody secessionist
conIcL In LIe semI-uuLonomous
BouguInvIIIe regIon, wIIIe oLIer
projecLs Iuve been bIumed Ior
envIronmenLuI dumuge und Iu-
man rights abuses.
Despite oll the politicol
noi se
ExxonMobII`s ugreemenL wILI
LIe governmenL seLs usIde u z
percenL royuILy Ior Iundowners,
Lo be IeId In LrusL by LIe govern-
menL unLII LIey Iuve veLLed LIe
cIuns LIuL cIuIm Lo own LIe Iund.
Petroleum and Energy Minis-
ter Nixon Duban could not be
reucIed Ior commenL by pIone
or emuII, buL Ie LoId LIe Aus-
LruIIun BroudcusLIng Corporu-
tion earlier this month that he
Ioped mosL oI LIe cIun-veLLIng
wouId be compIeLed by CIrIsL-
mas.
TIe projecL conLuIns unprec-
edenLed poLenLIuI upsIde Ior
Pupuu New GuIneu. Ls econo-
my Is IorecusL Lo IIL u record z1
percenL growLI ruLe In zo1 on
LIe buck oI LIe projecL, wILI LIe
governmenL expecLIng Lo bunk
1.; bIIIIon Lo z.z bIIIIon kInu
($6z1 mIIIIon Lo $8o mIIIIon)
per year until early next decade.
TIuL hgure wIII sour Lo q.
bIIIIon kInu, boosLIng LoLuI rev-
enue by qo percenL Irom zo1q
beIore consLrucLIon oI u sec-
ond $1z-bIIIIon NG projecL,
expected to boost the econo-
my IurLIer wIen work begIns
uround zo1; or zo18.
ExxonMobil and its partners
- OII SeurcI Ld, SunLos Ld,
Japans Nippon Oil Corp and
LIe PNG governmenL - ure
IookIng Lo expund LIe pIunL,
buL Iuve yeL Lo decIde wIere Lo
source the additional gas.
ExxonMobil PNG Ltd Man-
aging Director Peter Graham
suId LIuL Ie Ius IuILI LIuL LIe
governmenL wouId seIze on LIe
projecL`s poLenLIuI Lo rudIcuIIy
LrunsIorm Pupuu New GuIneu.
um reuIIy proud oI wIuL
we`ve conLrIbuLed LIrougI-
ouL Iour yeurs oI consLrucLIon.
We`re uIeud oI scIeduIe - und
there arent many resource pro-
jecLs In LIe regIon LIuL cun suy
LIuL.
He suId Ie wus conhdenL oI
LIe governmenL`s ubIIILy Lo
dIsLrIbuLe Iunds, uddIng LIuL u
LrunspurenL benehL sIurIng und
dIsLrIbuLIon process wus crILIcuI
Ior Iong-Lerm securILy.
Risk of trouhle
NoL everyone, Iowever, Is so
sanguine about its prospects.
TIe IIgIIund vuIIeys wIere
LIe projecL Is IocuLed ure umong
the most isolated locales on
EurLI und decIdIng wIo Is enLI-
tled to compensation is a hugely
complicated task made more so
by competing land claims and
compIex IocuI concepLs oI own-
ership.
On Lop oI LIIs Pupuu New
GuIneu Is runked 1qqLI ouL oI
1;; nuLIons on Trunspurency
nLernuLIonuI`s zo1 GIobuI
CorrupLIon ndex, puLLIng IL
jusL uIeud oI ZImbubwe.
RIgIL now LIere`s un expec-
LuLIon LIuL weuILI wIII come.
My poInL oI vIew Is LIuL II peo-
pIe don`L see someLIIng wILIIn
1z monLIs oI LIe sLurLup, LIere
wIII be bIg LroubIe, suId GrunL
Worner, u Iormer CEO oI New
GuIneu Energy, un energy ex-
plorer.
TIe use oI vIoIence Lo seLLIe
dIspuLes Is uIso woven InLo LIe
LrIbuI IubrIc und ussuuIL weup-
ons ure ubIquILous. TIe ;oo-
km PNG LNG pipeline is mostly
burIed underground, LIougI
some experLs wurn oI ILs vuIner-
ability to sabotage. Reuters
puny uL LIe cenLre oI LIe scun-
dal.
uyug, z;, wus sLuLIoned In
Jupun und worked In sIIp IogIs-
LIcs wIen Ie uccepLed LIe gIILs,
wIIcI IncIuded puymenLs oI
$1,ooo u monLI pIus expensIve
gadgets including iPhones and
a Wii game set.
Every servIce member Is en-
LrusLed wILI LIe enormous re-
sponsIbIIILy oI proLecLIng LIIs
counLry uL uII cosLs, US ALLor-
ney uuru Duy suId In u sLuLe-
menL. Becuuse oI IIs greed,
DunIeI uyug IeII woeIuIIy sIorL
oI LIIs IIgI cuIIIng, und LIIs
guilty plea holds him account-
ubIe Ior u puInIuI beLruyuI.
TIe compuny`s CEO, Mu-
laysian businessman Leonard
GIenn runcIs, Is cIurged In LIe
IIgI-prohIe cuse wILI pIyIng
Nuvy om cIuIs wILI cusI, concerL
LIckeLs, prosLILuLes und oLIer
gIILs Lo wIn busIness.
The complaints against Fran-
cis allege that he directed a
scIeme Lo deIruud LIe Nuvy by
brIbIng mIIILury om cIuIs Lo sLeer
sIIps InLo Iurbours wIere IIs
compuny wouId provIde sIIp
Iusbundry - u runge oI servIces
Irom cIeunIng, resLockIng und
reIueIIIng Lo sIepIerdIng Nuvy
personnel during their port
stay.
runcIs, LIe compIuInLs uIIege,
wouId LIen InuLe LIe cIurges
Ior LIose servIces und demund
kIckbucks Irom IIs compuny`s
subcontractors.
US Nuvy Communder MIcIueI
MIsIewIcz und Nuvy crImInuI
InvesLIguLIons specIuI ugenL
JoIn BeIIveuu were urresLed
IusL SepLember In LIe cuse, uL
LIe sume LIme us runcIs, und
cIurged wILI conspIrucy Lo
commit bribery.
Commander Jose Luis
SuncIez wus urresLed und
cIurged In November wILI uc-
cepLIng prosLILuLes, Iuxury Lruv-
eI und $1oo,ooo In cusI Irom
runcIs. GIenn DeIense execu-
LIve AIex WIsIdugumu, oI SIn-
gupore, wus uIso cIurged In LIe
scunduI. He und BeIIveuu Iuve
since pleaded guilty. Reuters
Resource projects in Papua New Cuinea have previousIy stirred vioIence or even civiI conHict, and even when up and running
there is a risk of money being squandered or pocketed by ofciaIs.
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.|.q:,e.,q ExxonMobil .
......:_e~.._ ~..q
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.~ .|~._~~~ .........
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.q~.~q:q Dan Layug . ,.
~.,_e Glenn Defense Marine
Asia . .q~...:.:.- ~. ,
~e:..:....q, ~~ ~ . .:..~ ..:
.:. ~.~.q:,..~.._..:..
~..e~e~ .,..:. .~.
.._~:. ~,.:.._.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
Myanmar Summary
Myanmar Summary
Myanmar Summary
Are Entrepreneurs Really The Happiest
People on Earth?
Jane Park
O
ne oI LIe quesLIons `m
usked mosL oILen Is,
Are you happy all the
time because youre an entre-
preneur?
TIe myLIoIogy oI enLrepre-
neurIuIIsm Is powerIuI. You
unswer onIy Lo yourseII, seL
LIe ruIes, und muke your own
decIsIons. Or so LIe myLI goes.
TIe Ieup ouL oI suIe, corporuLe
IIIe seems so duunLIng; LIe us-
sumpLIon Is LIuL LIose wIo
munuge Lo muke IL over LIe IIne
musL IIve ouL LIeIr duys In seII-
actualised bliss. More times
LIun cun counL, men und
women, young und oId, Iuve
cornered me Lo usk, L musL be
greuL Lo be your own boss! s IL
everyLIIng you ever dreumed IL
wouId be? TIus Iur, Iuve Iud
LIe decency und seII-uwureness
Lo sLop myseII sIorL oI bursL-
Ing ouL IuugIIng. Becuuse, us
unyone wIo Ius Iounded u com-
puny undersLunds, enLrepre-
neurialism is more like a mental
IIIness LIun u sLuLe oI nIrvunu.
Bused on my own experIence,
und LIe LruLIIuI responses oI
oLIers know, Iere Is wIuL IL
reuIIy IeeIs IIke Lo be un enLre-
preneur:
As LrILe us IL sounds, you
IeeI compeIIed. You cun`L sLop
thinking about your idea and
Iow Lo muke IL beLLer zqJ;.
WIen you`re sIowerIng. WIen
you`re drIvIng. WIen you`re
supposed to be clearing your
mInd In yogu. TIe IoIIow-up
quesLIon Lo: Are you Iuppy uII
LIe LIme? Is oILen, WIen dId
you know you wunLed Lo Ieuve
LIe suIe corporuLe IIIe und Luke
LIIs Iuge rIsk? Lry Lo ex-
pIuIn LIuL none oI IL Iuppened
LIuL wuy, uL IeusL Ior me. L IeIL
less like a leap and more like a
gruduuI meILIng uwuy oI oLIer
pIuusIbIe uILernuLIves. never
jumped. jusL puL one IooL In
IronL oI LIe oLIer wILI LIe IuILI
wus Ieuded In rougIIy LIe rIgIL
direction. Wiser entrepreneurs
Iuve descrIbed LIeIr IoundIng
process us u weury reuIIsuLIon
LIuL IL`s wIuL LIey Iud Lo do - In
spILe oI wIuL LIey knew wouId
be impending pain and heart-
ucIe. As unromunLIc us IL Is,
LIere Is oILen no Ieup. TIere Is
onIy u sLeudy, unwuverIng puII
(or push) to start something
new.
EnLrepreneurIuIIsm Is u nev-
er-endIng Iesson In IumIIILy. I
you ure un eecLIve enLrepre-
neur, you end up IIrIng peopIe
smurLer LIun you ure In every
IuncLIon. AILer uII, us u Iounder
you ure uIwuys jusL mInImuIIy
vIubIe producL, IoIdIng u posI-
tion only until an expert in the
IuncLIon comes uIong Lo reIIeve
you. You also end up reporting
Lo u Bourd smurLer LIun you
ure, hIIed wILI peopIe wIo Iuve
been LIere beIore, scuIIng or-
ganisations and keeping track
oI LIe sIgns oI perII. InuIIy,
you end up servIng consumers
wIo ure wuy smurLer LIun you
In knowIng exucLIy wIuL LIey
wunL. AII you cun do Is commIL
Lo coIIuboruLIng wILI uII LIese
umuzIng resources Lo geL Lo LIe
best solutions.
MosL ImporLunLIy, enLrepre-
neurIuIIsm IeeIs IIke opLImIsm.
or me, LIe mosL powerIuI LIIng
about being an entrepreneur is
my eorL Lo beIIeve LIuL Lomor-
row cun be beLLer LIun Loduy.
sLurLed JuIep becuuse wunL
Lo buIId u beLLer wuy Ior women
Lo connecL und empower eucI
oLIer, Lo Iuve more Iun, Lo ex-
pIore, und Lo Luke more rIsks
ouLsIde LIeIr comIorL zones.
Now, wunL Lo buIId u beLLer
compuny, wIere we LreuL eucI
oLIer beLLer und come up wILI
better ideas. Entrepreneurial-
Ism Is ubouL u beIIeI LIuL beL-
Ler Is ucIIevubIe - one sLep uL u
time.
dIdn`L sLurL u compuny be-
cuuse wunLed Ireedom, or
wILI LIe beIIeI wouId be jump-
Ing ouL oI bed every duy bursL-
Ing In song. AskIng LIe quesLIon
Are you happy because youre
un enLrepreneur Is LIe wrong
quesLIon uILogeLIer. LIInk u
more upproprIuLe quesLIon Is,
Are you mukIng u dIerence?
And Lo LIuL wouId unswer
um LryIng. know Ior sure LIuL
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.~ .~ .. ~ . . ..: q.|.e .. _.
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... _~._~.ee.~:.~:.:..:.
~.~: ~,.~ ~e~.._._e.
~: ...~:.~:. .|,~..~.~
..e~.:.''.~:..~ ~_~...|.
..q.~~...:~.~:~. ..:
. ~ ..._~.|~e . ~ . ~.|. .~q
~, ..~: ~ e ~ e ~ .qe . .~: ~
.~:.,..._.. ee.~..~.
.,~:.|. .:. . . .~: ~ . ~ ~. .
~ ~_ .: :.~ e . .. ,:.._
.|...e .,.~..~: ,-:,
.e~~ .~.e..~..,~.,.
.|. .~, .q ~ e . ~.~ ~_~ ~, .
.~ ~_.:._~.~q..:.q ~,_.,.
~. , ~q:..~ ~ ~._.. _. . . , .~
. ~. .e:~ e . . .:.q~e . ~:
~.~: ._.:_...|~e.
]ane Park, founder and chief executive ofcer of ]uIep Beauty Inc. The company seIIs beauty products such as hand, naiI, foot
care, cosmetics and perfume products. Its newest product was crowdfunded by customers and fans.
C
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Lafarge Explores Cement Markets in
Myanmar, Sri Lanka, Bangladesh
`m more enguged und con-
necLed. And LIuL`s wIuL mukes
IL excILIng Lo wuke up every duy.
Jane Park is a contributor at
Iorbes. She is c stcrtup CED
and leads Julep. The article
ucs jrst published in Iorbes.
Wai Linn Kyaw
F
rench cement and con-
creLe muker uIurge`s
Malaysian subsidiary is
considering exploring cement
exporL murkeLs In Myunmur, SrI
unku, BungIudesI, MuIdIves,
Mauritius and other countries
uround LIe ndIun Oceun.
Ls PresIdenL und CIIeI Execu-
LIve Omcer BrudIey MuIroney
suId uIurge wus seIIIng cemenL
Lo vurIous counLrIes buL wouId
like to emphasise on Peninsular
Malaysia as the company has a
commitment to the Malaysian
governmenL Lo ensure LIuL IL
wouId noL Iuve u cemenL sIorL-
supply.
We must not export and
Ieuve MuIuysIu wILI u sIorL-
suppIy, Ie LoId reporLers uILer
the companys annual general
meeLIng, Bernumu news ugency
reported.
MuIroney suId uIurge`s pIuns
Lo venLure InLo new murkeLs
were udvunLugeous vIs-u-vIs
other cement exporters as cur-
renLIy LIe compuny Ius con-
creLe pIunLs nuLIonwIde. TIree
pIunLs were opened In LIe IusL
Iour monLIs.
He suId LIe compuny wus In-
vesLIng beLween RMq mIIIIon
und RMo mIIIIon ($1q-1.
million) this year in the cement
business.
Japan to Provide HR Development
Aid to Myanmar
Phyu Thit Lwin
T
Ie Jupunese governmenL
wIII provIde u grunL uId oI
q68 mIIIIon ($q.68 mII-
IIon) Lo oer ucudemIc opporLu-
nILIes Ior Myunmur scIoIurs Lo
study Masters courses in Japa-
nese higher educational institu-
tion in English.
TIe grunL ugreemenL Ior LIe
ProjecL Ior Humun Resources
DeveIopmenL ScIoIursIIp wus
sIgned beLween LIe DepurLmenL
oI EducuLIon PIunnIng und
Training (DEPT) and the Ja-
pun nLernuLIonuI CooperuLIon
Agency (JCA).
The Japanese scholarship tar-
gets young and highly capable
governmenL omcIuIs und prI-
vuLe secLor purLIcIpunLs wIo ure
expected to contribute to the
deveIopmenL oI LIeIr counLry
through engagement in imple-
menting social and economic
deveIopmenL pIuns.
., ~. .q~.,_e _., .:. q ..,
.:..:..:.~:. J apanese higher
educational institution ~ ~..
:.:_e ~.~,.~~.q:~q,
.,.e,. ,' .,. ~..q~,
..'.: , ... ' .,., ...~.
.:..__e.._~:. .q._.
~. .|..:~ _ .~ ~:.._:
.q. ..~,. . . _~:.. .. ._:,. .
, ~_._ _._ . q:. ...| ...: q ~
.q..~ . (JICA)~ . .~ . ~ .q. ..
_. ._e. ._ .
_. .. .. ._.. ~ , ~q. ~ . .
.q. Lafarge - ....q:..~
.~:~.~.~~.,_e _.,.: .q
.~: .:...q ..:..~.
~ . e.. . q:~, .~ q . .:.. ~ .
q, ...~~.:. q:.e.~q._~:.
.q._.
~..|~.~- ~_. ~...:
.._e.. Bradley Mulroney .
Lafarge ~.,_e ..._..:.~:.
. ~. ~_.:.. ~ . .~ q _. .....q :.
~,..e~:. ~...:.._~.,
_e ~.~~.,_e ....q:.~..q
~:. .. ._._.~ .. _. ..q ..q,
~~_.:..._.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
Myanmar Summary
David Mayes
W
uLcIIng LIe wuy
the stock mar-
ket goes up and
down, und IoIIowIng LIe
vurIous Indexes us LIey
bounce uround, IL be-
comes very eusy Lo IorgeL
LIuL underneuLI LIe TSE
or S&P oo Is u buncI oI
actual cash generating
busInesses (excepL wIen
the said business are los-
Ing money oI course). n
LIe IusL Iew decudes es-
pecIuIIy, InvesLors Iuve
oILen come Lo Iook uL
markets as a place to pick
wIuL LIey Iope wIII be LIe
bIg wInners In u cupILuI
appreciation game. Yet
orIgInuIIy sLocks were u
pIuce wIere LIe weuILIy
purked cusI Ior LIe Iong
term in order to gain a
suIe Income sLreum.
SomewIere uIong LIe
wuy LIe sLorIes oI IoIks
wIo Iud won bIg by geL-
ting in early on companies
sucI us MIcrosoIL Iuve
cIunged LIe wuy peopIe
Iook Lo eurn money ouL oI
the markets. This change
has essentially made mar-
kets more akin to a ca-
sIno Ior mosL, InsLeud oI u
pIuce wIere conservuLIve
InvesLors hnd soIId com-
panies and share in their
Iong Lerm prospecLs. Even
LIougI so muny prohLubIe
companies continue to
puy dIvIdends wIIcI oI-
Investing for Dividends
Ier u very uLLrucLIve yIeId,
nowuduys WuII SLreeL us
u wIoIe seems Lo cure Iur
Iess ubouL Iong Lerm vIu-
bIIILy LIun wIuLever sIorL
Lerm resuILs were pro-
duced In LIe IusL quurLer.
I you ure IookIng Lo gen-
erate an income stream
over LIe comIng decudes,
you mIgIL wunL Lo con-
sIder LIe sLruLegy oI dI-
versIIyIng ucross u spreud
oI borIng, bIue cIIp com-
panies in industries that
ure IIkeIy Lo survIve LIe
currenL wuve oI dIsrup-
LIve LecInoIogIes. Muny
Iuve u corporuLe poIIcy oI
puyIng sLeudy dIvIdends
regurdIess oI sIorL Lerm
results or gyrations in
the markets. The key is to
hnd compunIes LIuL Lrude
uL prIces reIuLIve Lo LIe
dIvIdend LIuL gIve u good
yield in percentage terms.
I you ure Iuppy wILI LIe
yIeId und Iuve purcIused
compunIes you beIIeve
In, LIen IorgeL ubouL LIe
ucLuuLIons In prIce uILer-
wurds.
Think about companies
LIuL you beIIeve wIII sLIII
be uround In LIIrLy yeurs,
and rank them according
Lo dIvIdend yIeId. I you
IoIIow LIIs sLruLegy, you
need to ignore the ups
und downs oI LIe cusI
ouL vuIue oI your porLIo-
IIo. Sure LIe overuII mur-
keL muy und probubIy wIII
crusI every so oILen, buL
IL wIII uIwuys come buck
up again in due course.
As long as you continue
Lo receIve your Income
sLreum, you reuIIy sIouId
cure Iess wIuL vuIue peo-
pIe ure wIIIIng Lo bId Ior
assets that you do not in-
tend to sell.
DIversIhcuLIon ucross
companies and sectors
is extremely important
wIen InvesLIng Ior dIvI-
dends. Any one compuny,
no muLLer Iow Iong LIey
Iuve Iud u sLeudy poIIcy,
can suddenly decide to do
u 18o-degree Lurn. WIen
u compuny IIke LIIs hnuIIy
drops or reduces LIe dIvI-
dend, LIe prIce usuuIIy
drops o u cII us Income
InvesLors uII sImuILune-
ously dump it. The larger
LIe number oI sLocks In
your porLIoIIo, LIe Iess LIe
ImpucL II uny one com-
puny cIunges ILs dIvIdend
policy.
WIIIe personuIIy LIInk
IL wouId be beLLer Lo wuIL
until the next crisis or
severe correcLIon Lo In-
vesL In dIvIdend sLocks,
us LIe yIeIds wIII go up In
percentage terms as the
price drops (you get more
shares per dollar and thus
a larger income stream).
You muy noL Iuve LIe Iux-
ury oI wuILIng und wouId
like to generate that in-
come sLreum now - II LIIs
Is LIe cuse, you need Lo be
more seIecLIve Lo muke
sure LIe uveruge yIeId
equuLes Lo un Income LIuL
you cun IIve wILI. WIuL-
ever you do, don`L punIc
und seII ouL wIen LIe nexL
crIsIs comes. I LIe com-
punIes In your porLIoIIo
survIve, your Income Is
suIe regurdIess oI wIuL
LIe currenL IeveIs oI LIe
TSE or LIe S&P ure.
David Mayes MBA
protides ueclth mcn-
agement services to ex-
patriates throughout
Southecst Asic, jocusin
on UK Pension Trcns-
fers. He can be reached
at david.m@faramond.
com. Icrcmond UK is
regulated by the FCA and
provides advice on pen-
sions and taxation.
D
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..~: ...~ ~ .:.-~, .
~_.. .:._.:..._ ~,.
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FTSE ..e~ S&P 500 ~
-.~:~~ .~q .._~.
~ . . . ._ . .. :..q.. . , .
.:. ,.~~.,_e .~..:.
. .,..,._ e . ._ ~ .~: ,
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e ~~ . q .. ._. . . . .:.
~.,_ e . q .~.:.. ~
~_~ .~e . ..~: . . .:.
_e. . ._ . ._ ~.~ ..:._e
...~ ~ .:.~:. _~_ , .q ..e
.:_~._ .. .~:._e ..~:
.:.._ . ._~..:.~:. . . q _
~:._e . _. . ~ .. : ~ . qq
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~:. ...~~~~. .._~.
q :.e . ~~ ~ ~_. .:.._.: ..
.:_~._ . . ._.: .. . ._
...~~.:.~:. .q.,.. q...
_.....:.~.,_e ..:._
~.~.:.~:. ,.~-..q_
~..~..:.~_e. .~.~
:.._ ~ ~:. . ~_e. .
_..:_~_._e.._. ~_.~qq
._ ~.~.:.~.,_e ,.
~ -q e e:~..'~_.~ .:._.,
._ . .~..._. .~:._e . ..:
.._.,q:~_e. ....:
.:_~._~:..~q._.
Shinhwa Eyes Myanmar
Opportunities
Aye Myat
S
outh Korea-based
SIInIwu nLernu-
tional Co Ltd is eye-
ing potential businesses
In power pIunL consLruc-
LIon und duLy-Iree sLores
in Myanmar.
SIong Jun-Seok, cIeII
execuLIve oI SIInIwu, Iud
un omcIuI meeLIng wILI
depuLy mInIsLer Ior eIec-
LrIc power und dIscussed
possIbIIILIes oI esLubIIsI-
Ing u oo meguwuLLs
(MW) couI-hred power
pIunL In MuwIumyIne re-
gIon, uccordIng Lo IocuI
media reports.
The company is also re-
portedly discussing possi-
bIIILIes oI esLubIIsIIng du-
Ly-Iree sLores In Yungon
nLernuLIonuI AIrporL und
MunduIuy nLernuLIonuI
Airport.
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Shong J un-Seok . ..:._.
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Myanmar Summary
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Investors Need to Rethink Their Strategies in Myanmar
Stephen Seng
T
oduy, one oI LIe LougIesL
cIuIIenges IucIng muny
expuLrIuLes und Inves-
tors coming to Myanmar is the
mounLIng prIce oI properLy und
access to standard accommoda-
LIon. SInce governmenL reIorms
Look pIuce In zo1o, u urry oI
IoreIgn InvesLors Ius been seek-
ing business opportunities in
Myanmar and many multina-
LIonuIs dove Ieud-hrsL InLo LIe
last emerging market eyeing ex-
punsIon, prohL und growLI. BuL
it became clear that the reality
wus oLIerwIse.
TIe mujorILy oI enLrepreneurs
comIng Lo Myunmur Iuve un
ucuLe uwureness oI Iow IIgI
properLy renLs Iuve become,
especIuIIy wILI regurds Lo com-
mercial operations in cities like
Yangon and Mandalay. Ac-
cordIng Lo ConsuIL Myunmur,
prIce per squure IeeL (sqIL) oI
Iund In downLown Yungon Ius
rIsen Irom Kzqo,ooo ($zqq) Lo
Kzo,ooo ($zq), meunIng un
Increuse oI $1o,ooo Ior every
LIousund sqIL. Omce renLuI
Ius uIso gone up Lo ubouL $;8
per squure meLre (sqm), wIIcI
exceeded downLown MunIuL-
Lun`s $qq per sqm, uccordIng Lo
properLy reseurcI hrm CoIIIers
nLernuLIonuI. One bIg IucLor
beIInd LIIs jump Is sImpIy IIgI
demund over IncremenLuI sup-
ply. This poses an incredible
obsLucIe Ior muny InvesLors wIo
come Lo Myunmur wILI IoILy ex-
pecLuLIons - LIe bud news Is LIe
prices are expected to increase
IurLIer.
TIere Iuve been u serIes oI Lop
IeveI LuIks umong governmenL
omcIuIs, busIness communILIes
and international experts on
enacting a solid property and
commercIuI renLIng Iuw LIuL
couId be posILIve Ior IoreIgners.
BuL LIe Iund reIorm procedures
requIre LIme wIIIe new busI-
nesses expect speedy results.
WIIcI begs LIe quesLIon: How
cun LIen InvesLors success-
IuIIy prohL Irom LIe so cuIIed
unLupped murkeL wILI sound
business models and sustain-
ubIe sLruLegIes?
Out in the pelds
The economy in Myanmar is
ugrIcuILure-bused wIIIe mucI
oI LIe Iund remuIns unLoucIed
and the sector badly needs
mecIunIsuLIon. MckInsey nsLI-
LuLe In ILs zo1 reporL unuIysed
that the country needs to tackle
Iour mujor secLors Lo puII o
momenLous economIc growLI.
TIIs IncIudes LrunsIormuLIon
oI dIgILuI InIrusLrucLure, sec-
LoruI sIIIL Irom ugrIcuILuruI Lo
munuIucLurIng, expunsIon oI
weII-pIunned urbunIsuLIon und
a globally-connected economy.
These roadmaps are crucial ele-
menLs Lo Myunmur`s IuLure de-
veIopmenL.
AbouL 8o percenL oI Myun-
mur`s popuIuLIon, wIIcI re-
muIns uL LIe boLLom oI LIe
pyrumId, needs Lo become In-
LegruLed In LIe uIoremenLIoned
murkeLs; u new busIness modeI
LIuL IdenLIhes q bIIIIon peopIe
In LIe worId wILI no uccess Lo
higher luxury goods but able to
consume re-engineered prod-
ucLs und servIces LIuL meeL LIeIr
busIc demunds sucI us uordu-
ble electronics and health care.
MujorILy oI Myunmur`s popuIu-
LIon Is purL oI LIIs murkeL und Lo
reach out to this segment com-
punIes need Lo reInvenL LIeIr
business models and execute
LIem In LIe deepesL corners oI
Myunmur, excIudIng denseIy
populated cities like Yangon
and Mandalay. More than sixty
percenL oI LIe ruruI popuIuLIon
in Myanmar needs better agri-
culturally-related businesses
sucI us emcIenL producLIon
oI crops, IurmIng und pouILry
production. A prime example
oI IocuI corporuLe success seen
In Myunmur Is LIe IocuI wInery,
Myunmur VIneyurd, In Tuung-
gyI In souLIern SIun sLuLe. Es-
LubIIsIed In 1qq8 by u group oI
Europeun wIne experLs, Myun-
mur VIneyurd Is now pIunnIng
Lo enLer LIe InLernuLIonuI wIne
murkeL. TIe hrm provIdes wIne
production training and is cre-
uLIng job opporLunILIes Ior Io-
cuIs In LIe regIon, mukIng IL u
socIuI busIness us weII.
TIe second ureu Lo Iocus on
Is LIe servIce IndusLry. Every-
one knows LIe urgenL needs Ior
educuLIonuI servIces In LIe ruruI
ureus oI Myunmur. DespILe LIe
counLry`s IILerucy ruLe oI qz.;
percenL, uccordIng Lo ndex
MundI zo1, LIere Is sLIII u need
Ior quuIILy educuLIonuI servIces
such as English learning cen-
Lres or even prep scIooIs. TIe
education sector in Myanmar
has a real business potential
und IL wouId sureIy conLrIbuLe
Lo LIe overuII deveIopmenLs oI
LIe economy us u wIoIe. or
InsLunce, educuLIon cenLres IIke
ToLuI und S.A.G (TuunggyI) ure
mukIng sIgnIhcunL ImpucLs In
LIe IIves oI LIe sLudenLs uround
LIe regIons. SLudenLs gruduuL-
Ing Irom LIese IeurnIng cenLres
Iuve prohcIency In EngIIsI us
weII us udequuLe quuIIhcuLIons
Lo sLurL workIng. L Is LIme LIuL
multinational education com-
panies remodel their strategies
und servIces Lo reucI LIIs mur-
ket.
1or greoter productioitg
TIe currenL prIce oI properLy
Ior renL und unsLubIe commer-
cIuI Iuws ure IInderIng LIe es-
LubIIsImenLs oI muILInuLIonuI
corporuLIons und medIum-sIzed
enLerprIses. However ugro-pro-
ducLIon, IeuILI cure, LeIecom-
munIcuLIon, LourIsm und edu-
cuLIonuI IndusLrIes wouId sureIy
reup LIe benehLs und IL wouId
muke sIgnIhcunL dIerences In
LIe IIves oI LIe peopIe us weII us
enIorce cIunges wILI regurds Lo
urbun deveIopmenL In ruruI ur-
eas.
und ucquIsILIon Ior commer-
cial use through a proper legal
procedure wouId be more em-
cient in rural areas rather than
IeuvIIy-reguIuLed cenLruI cILIes
like Yangon or Mandalay. Any
entrepreneurs or expatriates
comIng Lo Myunmur now wIII
need In-depLI InIormuLIon on
properLy reguIuLIons or InvesL-
menL guIdes. However, severuI
InvesLmenL guIdes, consuILuLIon
servIces or even onIIne properLy
markets such as House (house.
com.mm) and Myanmar Hous-
Ing ure provIdIng hrsL-cIuss
consuILuLIons und cun sIow vI-
ubIe opporLunILIes Ior growLI In
LIIs murkeL. L Is LIme muILInu-
tionals strategise and startups
InnovuLe LIeIr busIness modeIs
IocuIIy wILI u corporuLe sLund-
urd Lo suIL ruruI murkeLs, reup
exponenLIuI growLI und enjoy
susLuInubIe wIn-wIn reLurns.
Stephen Sen is cn MA (in-
ternational management) stu-
dent ct Nurtinen Unitersit
oj Applied Science. He is cur-
rently based in Berlin, Ger-
many, and can be reached at
sengyuan0508@gmail.com.
Myanmar Summary
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Despite the countrys literacy rate

of 92.7 percent there is still a need
for quality educational services such
as English learning centres or even
prep schools. The education sector in My-
anmar has a real business potential and it
would surely contribute to the overall de-
velopment of the economy.
Yangon skyline. Today, one of the toughest challenges facing many expatriates and investors coming to Myanmar is the
mounting price of property and access to standard accommodation.
W
a
i
L
in
n

K
y
a
w
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
Myanmar Summary
Impact Investing and Entrepreneurship Can
Help Take Myanmar to The Next Level
Maximilian Martin
M
yunmur Is workIng
Iurd Lo uLLrucL InvesL-
menLs Lo Iund LIe
modernIsuLIon oI ILs economy
on u number oI IronLs, us weII
as encourage its leading local
companies to internationalise.
TIe counLry enjoys u number
oI InLeresLIng und evoIvIng vurI-
ubIes uL LIe momenL, wIuL wILI
its strategic location bordering
CIInu und ndIu (umong oLI-
ers), ubouL oo mIIIIon peopIe
IIvIng In ILs regIonuI neIgI-
bourIood, u young popuIuLIon,
abundant natural resources
(peLroIeum, LImber, precIous
sLones, nuLuruI gus und Iydro-
power), und un umbILIous re-
Iorm progrum underwuy.
TIe opporLunILIes Ior muk-
Ing progress ure enormous, buL
seIzIng LIem wIII noL be wILIouL
cIuIIenges. UK-bused non-proI-
IL Iumun rIgILs group BusIness
& Humun RIgILs Resource Cen-
Lre (BHRRC) recenLIy urgued
that companies operating in the
counLry oILen IuII Lo meeL In-
ternational standards on trans-
parency. Key to unlocking the
counLry`s IuII poLenLIuI und u
wuy Lowurd LIe mIddIe-Income
counLry IuLure ILs cILIzens so de-
sIre wIII be enubIIng reguIuLIon,
even more enLrepreneursIIp
wILI un eye Lo creuLIng econom-
Ic us weII us socIuI vuIue, und
InvesLmenLs LIuL undersLund
LIe need Lo drIve wIder posILIve
ImpucL Ior LIe counLry.
TIe cuse oI ruruI uccess Lo en-
ergy illustrates the stakes per-
IecLIy. GIobuIIy, un esLImuLed
1.z bIIIIon peopIe uround LIe
worId Iuve no uccess Lo eIec-
LrIcILy und 8 percenL oI LIem
IIve In ruruI ureus. AbouL $6
bIIIIon wouId need Lo be In-
vesLed every yeur on uveruge
unLII zoo Ior everyone uround
LIe worId Lo Iuve uccess Lo re-
liable electricity. People at the
buse oI LIe pyrumId currenLIy
spend $q bIIIIon on energy
each year to meet their cook-
Ing, IIgILIng, communIcuLIons
and income generation needs.
A dIversILy oI poLenLIuI energy
sources - wIIcI IncIude, buL
are not limited to solar photo-
voILuIc, bIomuss, Iydrocurbon
und geoLIermuI - guurunLee
LIuL eucI new yeur wIII brIng
noLubIe deveIopmenLs wILI
yearly progress continuing to be
made in decreasing the energy
gup beLween nuLIons. Accord-
IngIy, Myunmur Is uIso IucIng
u mussIve need Lo upgrude LIe
counLry`s energy InIrusLrucLure,
und Lo reucI ouL wIere peopIe
ucLuuIIy IIve: LIree quurLers oI
Myunmur`s popuIuLIon IIve In
the countryside. The electricity
uccess ruLe Is u mere 1 percenL,
und us mucI us one quurLer oI
the electricity produced is lost.
nnovuLIon und sLImuIuLIng
enLrepreneurs wILI u Iocus on
ImpucL wIII be crucIuI Lo gen-
eruLIng LIe kInds oI soIuLIons
now needed. A Iook ucross LIe
border Is InsLrucLIve. n ndIu,
neurIy oo mIIIIon peopIe ure
wILIouL uccess Lo power. RuruI
ureus Iuve u o percenL eIecLrI-
hcuLIon ruLe. ndIu`s RIce BeIL,
wIIcI consIsLs oI more LIun
z,ooo ruruI vIIIuges wILIouL
power, Ius sImIIur uccess ruLes
us Myunmur: onIy 1 percenL oI
households in the entire region
ure esLImuLed Lo Iuve eIecLrIc-
ILy. ProvIdIng udequuLe energy
soIuLIons mukes u bIg dIer-
ence, und LIIs Is wIere Innovu-
LIve busIness Ideus cun muke u
dIerence, us Is dIscussed In LIe
new mpucL Economy reporL
BuIIdIng mpucL BusInesses
LIrougI HybrId InuncIng,
wIIcI wus jusL reIeused.
or exumpIe, Husk Power
SysLems, one oI LIe cuse sLudIes
IncIuded In LIe reporL, provIdes
o-grId power LIrougI u sLund-
urdIsed soIuLIon Lo ruruI ndIun
vIIIuges muInIy In LIe eusLern
sLuLe oI BIIur, wIIcI conLuIns
upproxImuLeIy oo IouseIoIds
or uround zoo sIops und oLIer
smuII busInesses. TIe hrm pro-
duces, InsLuIIs, und operuLes
z-1oo KVA pIunLs wILI ILs own
mInI-grId, uL no Iee Lo LIe vII-
Iuges IL servIces. L LIen enLers
InLo conLrucLs wILI Iurmers und
local rice mills to procure rice
Iusks und oLIer bIomuss wusLe
uL hxed ruLes. TIe hrm gener-
uLes eIecLrIcILy usIng LIIs Ieed-
sLock und dIsLrIbuLes power us-
ing a point-to-point system that
connects each household and
busIness dIrecLIy Lo LIe power
station. Households pre-pay
$z.o per monLI und commer-
cial enterprises pay an addi-
LIonuI zo Lo o cenLs more Ior
cusLomIzed puckuges oI eIecLrIc-
ILy. AddILIonuIIy, Husk Power
SysLems Ius devIsed u process
Lo uLIIIze LIe wusLe producL oI
LIe gusIhcuLIon process (I.e. rIce
Iusk cIur). ApproxImuLeIy Lwo
Lonnes oI rIce Iusk cIur uL eucI
plant are rolled into unscented
Incense sLIcks every monLI und
sold to channel partners in the
IocuI murkeL. DespILe LIe nume,
Husk Power SysLems Is ucLuuIIy
technology-agnostic and also
commercIuIIses renewubIe en-
ergy Irom oLIer sources, sucI
as solar energy.
Bused on IundumenLuIs uIone,
LIe new Myunmur oers umuz-
Ing opporLunILIes Ior posILIve
impact and returns. According-
Iy, LIe M cuuLIoned In zo11
LIuL sLrucLuruI reIorms (wIIcI
are in process) should seek to
increase agricultural produc-
LIvILy und IosLer prIvuLe secLor
deveIopmenL. A greuL muny
LIIngs Iuve been ucIIeved. BuL
Myunmur now needs Lo hnd
wuys Lo IurLIer boosL enLrepre-
neurship and impact-oriented
InvesLmenL on u mujor scuIe.
TIIs wIII requIre ImprovIng
IoreIgn InvesLmenL IegIsIuLIon
und LIe generuI reguIuLory envI-
ronmenL, uIong wILI renderIng
governunce oI poLenLIuI Inves-
Lee compunIes more eecLIve.
An ecosysLem drIvIng IncIusIve
growLI Ius Lo emerge. Myun-
mur Is one oI LIe Iocus coun-
LrIes uL LIe mpucL Economy
SymposIum LIIs yeur In SwIL-
zerIund, und we Iook Iorwurd
Lo IurLIer expIorIng Iow Inno-
vuLIon und ImpucL InvesLmenLs
can be stimulated to contribute
Lo LIe posILIve IuLure LIe coun-
Lry deserves.
MuxImIIIun MurLIn, PID Is LIe
Iounder und gIobuI munugIng
dIrecLor oI mpucL Economy, un
ImpucL InvesLmenL und sLruLegy
hrm bused In uusunne, SwIL-
zerIund, und LIe uuLIor oI LIe
reporL BuIIdIng mpucL BusI-
nesses through Hybrid Financ-
Ing: SpecIuI mpucL SLurLer EdI-
tion.
A ruraI eIectrication project by Husk Power Systems in India. Husk Power Systems provides off-grid power through a stand-
ardised solution to rural Indian villages mainly in the eastern state of Bihar, which contains approximately 500 households
or around 2UU shops and other smaII businesses. The rm produces, instaIIs, and operates 25-1UU KVA pIants with its own
mini-grid, at no fee to the villages it services. Myanmars electricity-starved rural areas could adopt such innovative technolo-
gies to light up villages in remote off-grid areas.
A
c
u
m
e
n
.
o
r
g

Myanmar is also facing a massive

need to upgrade the countrys en-
ergy infrastructure, and to reach
out where people actually live:
three quarters of Myanmars population
live in the countryside. The electricity
access rate is a mere 13 percent, and as
much as one quarter of the electricity
produced is lost.
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Busi ness & Human Ri ghts
Resource Centre (BHRRC) . ._~:
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
Myanmar Summary
Myanmar Summary
EIRIS Launches Service for Investors to Manage
Conict-reluted Investment Risks in Myunmur
Wai Linn Kyaw
U
K-bused ERS Con-
IcL RIsk NeLwork Ius
IuuncIed u new servIce
desIgned Lo IeIp InvesLors muke
judgmenLs ubouL Iow compu-
nies are managing the risks re-
lated to doing business in con-
IcL-rIdden Myunmur.
TIe enLerprIse, wIIcI pro-
vIdes reseurcI InLo corporuLe
envIronmenLuI, socIuI und gov-
ernunce perIormunce, IuuncIed
nvesLmenL WuLcI: BurmuJ
Myunmur In conjuncLIon wILI
LIe hrsL unnIversury oI LIe US
governmenL`s Burmu Respon-
sIbIe nvesLmenL ReporLIng
RequIremenLs LIuL Look eecL
recently.
TIe servIce wIII IdenLIIy com-
punIes In LIeIr porLIoIIos LIuL
ure InvesLIng or consIderIng In-
vesLIng In Myunmur und ussess
LIe rIsks ussocIuLed wILI InvesL-
menLs In LIe SouLIeusL AsIun
country by particular compa-
nIes, ERS suId.
The organisation said the ser-
vIce wIII InLerpreL und Ieveruge
reports submitted under the
ReporLIng RequIremenLs und
deveIop InsLILuLIonuI poIIcIes
reIuLed Lo InvesLmenL In Myun-
mar.
TIe ReporLIng RequIremenLs
munduLe US corporuLIons
mukIng new InvesLmenLs oI
$oo,ooo or more In Myunmur
Lo reporL on LIeIr operuLIons,
poIIcIes, procedures und Im-
pacts.
WIIIe LIe hrsL yeur oI Im-
pIemenLuLIon oers ImporLunL
Iessons, LIere ure sIgnIhcunL
IImILuLIons In LIe ImpucL oI
LIe ReporLIng RequIremenLs Lo
duLe, suId ERS ConIcL RIsk
NeLwork DIrecLor KuLIy MuI-
vey.
Some compunIes muy be Luk-
Ing un overIy nurrow vIew oI LIe
InvesLmenLs LIuL ure subjecL Lo
reporLIng.
TIe ReporLIng RequIremenLs
wIII remuIn In eecL onIy us
Iong us LIe US GovernmenL`s
nuLIonuI emergency wILI re-
spect to Myanmar continues.
On Muy 1, PresIdenL Obumu
Issued un ExecuLIve Order con-
tinuing the national emergency
Ior one yeur.
TIe need Ior InIormuLIon
und unuIysIs oI corporuLe uc-
LIvILy In Myunmur Ius onIy In-
creused wILI LIe IIILIng oI sunc-
LIons. TIose seekIng Lo InvesL
responsibly in the country and
LIose wIo conLInue Lo uvoId
InvesLmenL In Myunmur need
reseurcI Lo IdenLIIy corporuLe
InvoIvemenL und Lo ussess cor-
poruLe poIIcIes, sysLems und
reporLIng, ERS ConIcL RIsk
NeLwork AdvIsory Bourd mem-
ber BenneLL reemun suId.
By IdenLIIyIng specIhc rIsks
ussocIuLed wILI operuLIons In
LIe counLry uL LIIs crILIcuI LIme,
nvesLmenL WuLcI: BurmuJMy-
unmur wIII be un IndIspensubIe
resource, enubIIng InsLILuLIons
LIuL seek Lo InvesL responsIbIy
noL onIy Lo muke InIormed de-
cisions but also to conduct en-
hanced due diligence regarding
Iow compunIes respond Lo spe-
cIhc Iumun rIgILs cIuIIenges,
suId SIIn uruyu, VP, Respon-
sIbIe nvesLmenL ReseurcI,
DomInI SocIuI nvesLmenLs,
uIso u member oI ERS ConIcL
RIsk NeLwork`s AdvIsory Bourd.
Myanmars Oil Sector Attracts Investment
Florence Tan &
Aung Hla Tun
T
Ie openIng up oI My-
unmur`s economy uILer
decudes oI IsoIuLIon Ius
Ied Lo u jump In oII demund, uL-
LrucLIng IocuI und IoreIgn Inves-
tors to build oil storage tanks
and a terminal to meet rising
consumption.
Here are some details on the
countrys oil sector.
Oil demond
Fuel demand rose more than
percenL Lo over qo,;oo burreIs
per duy (bpd) In LIe hscuI yeur
Lo MurcI, energy mInIsLry duLu
sIows. BuL Lruders suy undocu-
menLed IueI ows, purLIcuIurIy
smuggIed In Irom TIuIIund,
muy meun LIe rIse wus more
IIke zo-z percenL.
Myanmar relies on oil im-
porLs, wILI LIe prIvuLe secLor
ImporLIng more LIun zq,qqo
bpd In LIe IusL hscuI yeur. Den-
ko und Myuwuddy TrudIng ure
among the biggest local import-
ers, eucI buyIng ubouL ;,qo
bpd IusL yeur, Lruders suy.
AccordIng Lo governmenL
duLu, Myunmur ImporLed ubouL
1,8z bpd oI IueI In LIe IusL
hscuI yeur, wILI dIeseI uccounL-
Ing Ior neurIy IuII, gusoIIne jusL
over u LIIrd und jeL IueI LIe resL.
ndusLry esLImuLes ure IIgIer,
putting seaborne diesel imports
uL ;,zo-6z,o8 bpd In zo1
und up Lo zo,ooo bpd oI guso-
IIne ImporLed In LIe second IuII
oI zo1.
Repneries
SLuLe-owned Myunmur PeL-
rochemical Enterprise operates
LIree smuII rehnerIes und wunLs
InvesLors Lo upgrude. Two bure-
Iy IuncLIon wIIIe u LIIrd - LIe
1,oo-bpd TIunIyIn pIunL - op-
eruLes uL onIy jusL over IuII ILs
cupucILy, processIng IocuI con-
densuLe Lo muke Iow-quuIILy
gusoIIne, Lruders suy.
TIuIIund`s IurgesL rehner TIuI
Oil Pcl is proposing building
u 1o,ooo-bpd rehnery In LIe
counLry us purL oI u deuI Lo up-
grude Lwo exIsLIng rehnerIes.
Logistics
OnIy smuII-sIzed Lunkers,
wIIcI curry ubouL 6,ooo-
1o,ooo Lonnes oI oII, cun enLer
LIe sIuIIow Yungon RIver es-
tuary to reach the Yangon and
TIIIuwu porLs desIgnuLed Lo re-
ceIve oII.
Gasoline is shipped in
6,ooo-Lonne IoLs Lo LIe TIIIuwu
porL wIIcI Is LIen LrunsIerred
on Lo Lrucks Ior dIsLrIbuLIon.
or dIeseI, purLIuIIy Iouded me-
dIum runged-sIzed vesseIs curry
ouL sIIp-Lo-sIIp LrunsIers InLo
burges, wIIcI LruveI up Lo 1o
duys Lo MunduIuy beIore LIey
ure Iouded on Lo Lrucks Ior dIs-
tribution. Typically it takes a
day to unload a cargo due to
u need Lo wuIL Ior IIgI LIde Lo
uvoId u rIsk oI IILLIng sund-
banks.
Neu oil terminols ond
storage
Pumu Energy, u subsIdIury oI
gIobuI LrudIng hrm Truhguru
and Angolan state oil company
SonungoI, Is buIIdIng un oII Ler-
minal and storage tanks in a tie-
up wILI AsIu Sun.
WIen compIeLed In mId-zo1,
LIe LermInuI wIII be ubIe Lo Iun-
dIe medIum-sIze vesseIs, wIIcI
cun curry ubouL o,ooo Lonnes
oI oII, und LIere wIII be up Lo
88,ooo cubIc meLres oI sLoruge
Ior bILumen, gusoIIne, gusoII
und jeL IueI, LIe compuny suId.
MyInL Zuw, u dIrecLor uL LIe
energy mInIsLry, suId LIree or
Iour IocuI hrms Iud receIved
upprovuI so Iur Ior IueI oII
sLoruge projecLs In Yungon,
rungIng In sIze Irom qoo,ooo
Lo oo,ooo guIIons (1q,ooo-
1;,ooo Lonnes).
Companies planning to lease
Iund oered Ior oII sLoruge In-
cIude Denko und Myuwuddy
TrudIng, Newduy, MuxMyun-
mur, MMTM und GreenIuck,
according to industry sources.
A soldier from the Kachin Independence Army (KIA) puts on his shoes as he and his
comrade cross a stream towards the front line in Laiza, Kachin state.
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Myanmar Summary
Yangon Hotel Market Set for Another Record Year: Report
Huge opportunity awaits hotel investors in Myanmar as tourism continues to boom; Midscale hotel segment remains untapped: JLL
T
he hotel market in
Yangon is set to
continue its record
growLI In zo1q, IoIIow-
Ing u q6 percenL yeur on
year increase in interna-
LIonuI vIsILor urrIvuIs In
zo1, uccordIng Lo LIe IuL-
esL reporL Irom properLy
reseurcI hrm Jones ung
uSuIIe (J).
TourIsL urrIvuIs Lo My-
anmar are expected to
conLInue growIng uL LIe
sume speed, especIuIIy
wILI LIe expunsIon oI LIe
main airport and con-
sLrucLIon oI HunLIuwud-
dy nLernuLIonuI AIrporL,
said JLLs update.
Andrew ungdon, exec-
uLIve vIce presIdenL, TIuI-
Iund und ndocIInu, J`s
HoLeIs & HospILuIILy
Group, suId: Ever sInce
Myanmar embarked on
ILs journey Lo democrucy
In zo11, Yungon Ius seen
un IncredIbIe Improve-
ment in hotel market per-
Iormunce us demund con-
tinues to outpace supply.
RecenLIy unveIIed
pIuns Irom LIe AsIu De-
veIopmenL Bunk coupIed
wILI LIe expunsIon oI LIe
existing international air-
porL und LIe openIng oI u
new uIrporL neur LIe cILy
In zo18, meuns we don`L
expect any let up in the
growLI oI LourIsL urrIvuIs
Lo Yungon.
TIe sLrong demund Ior
international standard
uccommoduLIon, wIIcI Is
predomInunLIy drIven by
vIsILors Irom TIuIIund,
Jupun, CIInu und SouLI
Koreu, Is currenLIy ouL-
pucIng suppIy wILI Iess
LIun u LIIrd oI Yungon`s
q,16 rooms consIdered
Lo hL LIe crILerIu oI InLer-
national standard.
DespILe LIIs, J`s re-
port said there are signs
that the imbalance is be-
Ing uddressed wILI q,18
rooms expected to enter
LIe murkeL In LIe nexL hve
yeurs, oI wIIcI q per-
cenL wIII be InLernuLIonuI
sLundurd - more LIun
doubling the supply in
Yangon.
The report said there is
huge opportunity present
Lo InvesLors und operuLors
looking at the market as
occupuncy Ior LIe upscuIe
and luxury segments in-
creused Irom q.8 percenL
In zooq Lo u record 8o
percenL In zo1.
Phyu Thit Lwin
Over LIe pusL 1z
monLIs we`ve seen u
number oI InLernuLIonuI
IoLeI operuLors, IncIudIng
Accor und HIILon, Luke
udvunLuge oI LIese con-
dILIons wILI key projecLs
slated to open later in the
yeur, ungdon suId.
RevPur (revenue uvuII-
able per room) is also
dramatically increas-
Ing, growIng more LIun
; LImes Lo $1z6 over LIe
pusL hve yeurs, J suId.
RevPAR Is u perIormunce
metric in the hotel indus-
Lry, wIIcI Is cuIcuIuLed
by dIvIdIng u IoLeI`s LoLuI
guesLroom revenue by LIe
room count and the num-
ber oI duys In LIe perIod
being measured.
Due Lo LIe Increuse oI
suppIy pIunned Ior zo1q,
occupancy is set to re-
muIn sLubIe uL 8o per-
cenL LIrougIouL LIe yeur,
wIIIe ADR (uveruge duIIy
ruLe) Is IorecusL Lo be
$1;, up 1o percenL Irom
zo1. ADR Is u sLuLIsLIcuI
unIL LIuL ure oILen used
In LIe IodgIng IndusLry,
represenLIng LIe uveruge
rental income per paid
occupIed room In u gIven
time period.
Yungon uIso Iuces u
deurLI oI servIced upurL-
menLs, wILI J noLIng
that most unbranded
apartments are running
uL cIose Lo IuII occupuncy.
TIe SebeI Yungon MyuL
Min by Accor is expected
Lo be LIe hrsL InLernu-
LIonuIIy brunded servIced
apartment in Yangon.
Other properties to open
in Yangon include Dae-
woo ServIced ApurLmenLs
In zo16; SomerseL Ku-
bur Aye Yungon, HAG
ServIced ApurLmenLs,
und Pun PucIhc ServIced
ApurLmenLs In zo18.
Midscole opportuni-
ti es
JLL said opportunities
Ior InvesLors IIe In LIe
mId-scuIe segmenL oI LIe
IoLeIs murkeL, gIven LIuL
LIe IIon`s sIure oI IuLure
suppIy Is goIng Lowurds
the upscale and luxury
end oI LIe murkeL.
WILI LIe mujorILy oI Iu-
ture supply concentrated
Lowurds upscuIe und Iux-
ury, LIIs presenLs u sLrong
opporLunILy Ior LIe mId-
scuIe brunds wIere LIe
murkeL remuIns reIuLIveIy
unLupped, ungdon suId.
Beyond zo1q, Iowever,
occupancy rates are ex-
pected to stabilise as an
Increuse In suppIy wIII
IeIp moderuLe uveruge
duIIy IoLeI ruLes, LIe unu-
lysts said.
TIe IuLure remuIns
brIgIL Ior LIe Myunmur
hotel market and oppor-
LunILIes uwuIL InvesLors
und operuLors wIo ure
wIIIIng Lo Luke LIem.
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May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
24
Myanmar Summary
Myanmar Summary
Myanmar Summary
PROPERTY & REAL ESTATE
Moodys Cuts Outlook for Chinas Property Industry to Negative
M
oody`s Iowered ILs
ouLIook Ior CIInu`s
property industry to
neguLIve Irom sLubIe, reecLIng
expecLuLIons oI sIower resIden-
LIuI properLy suIes growLI, IIgI
InvenLory IeveIs und weuken-
Ing IIquIdILy over LIe nexL 1z
months.
MosL oI LIe ruLed deveIop-
ers Iuve good cusI buers und
munugeubIe rehnuncIng rIsk,
Iowever, LIe ruLIng ugency suId,
us LIey benehL Irom wuves oI
bond issues and solid demand
Ior LIeIr muss murkeL proper-
ties.
TIe weuker suIes growLI Ior
LIe secLor Is drIven muInIy by
LIgILer onsIore IIquIdILy, In-
creused morLguge ruLes, buyers`
expecLuLIon oI IurLIer eusIng oI
properLy prIces und sIower GDP
growLI In CIInu, Moody`s suId.
AILer IncreusIng uL doubIe-
dIgIL ruLes LIrougI mosL oI
IusL yeur, Iome prIces In CIInu
sLurLed cooIIng In IuLe zo1,
wILI LIe unnuuI growLI In uver-
uge new Iome prIces sIowIng Lo
un 11-monLI Iow In AprII, us u
sustained campaign to clamp
down on specuIuLIve InvesL-
ment and easy credit gained
traction.
An abrupt correction in the
Ian Chua & Clare Jim reuI esLuLe murkeL wouId pose
risks to the banking system and
the already-cooling economy.
Chinas central bank has asked
commercial banks to speed up
LIe grunLIng oI Iome Iouns und
to set mortgage rates at reason-
ubIe IeveIs, sources LoId Reu-
ters.
Moody`s ussIsLunL vIce presI-
dent Franco Leung told a
roundtable that Moodys ex-
pects Chinas property sales
vuIue wIII see uL Lo percenL
yeurIy growLI over LIe nexL
LweIve monLIs, compured Lo u
z6.6 percenL growLI uL LIe end
oI zo1.
He expecLs nuLIon-wIde prop-
erLy prIces Lo grow uL LIe sume
ruLe, wILI u correcLIon In LIe
Iower-LIer cILIes weIgIIng on LIe
growLI oI LIeIr hrsL-LIer peers.
YeL, LIe ugency suId IL expecLs
LIe credIL quuIILy oI mosL oI
LIe z deveIopers LIuL IL ruLes
to remain stable due to their
good IIquIdILy und uccess Lo
IundIng. uvourubIe operuLIng
condILIons In zo1 boosLed LIe
IIquIdILy oI muny ruLed deveIop-
ers, IL suId.
TIeIr hnuncIuI muLrIx ure
sLubIIIsIng In zo1q becuuse
theyre booking their record
suIes Irom zo1, suId vIce pres-
IdenL Kuven Tsung, uddIng LIe
large scale and high demand
Ior LIe muss murkeL properLIes
IeIp LIese deveIopers Lo wILI-
sLund LIe currenL murkeL down-
turn. Reuters
A man rides a bicycle past residential buildings in Shanghai. Moodys lowered its outlook for Chinas property industry to
negative from stabIe, reHecting expectations of sIower residentiaI property saIes growth, high inventory IeveIs and weaken-
ing liquidity over the next 12 months.
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Reuter . ~_.:.._.
LNICII Admits $S,,ooo Yungon Omce Rent
T
Ie UnILed NuLIons CIII-
dren`s und (UNCE)
said that it pays a steep
renLuI oI $8;,ooo per monLI
Ior ILs omce In Yungon, con-
hrmIng un eurIIer reporL LIuL
IL wus puyIng up Lo $qo,ooo u
monLI Ior ILs IeudquurLers In
Myanmars economic hub.
EurIIer, TIe rruwuddy hrsL
reporLed LIuL LIe UN ugency`s
mussIve ,ooo-squure IeeL oI-
hce In Yungon`s upscuIe BuIun
LownsIIp Is renLed Irom Iormer
GeneruI U NyunL TIn, wIo wus
u mInIsLer Ior ugrIcuILure dur-
Ing LIe Iormer mIIILury regIme.
However, speukIng eurIIer Lo
AP BerLrund BuInveI suId LIe
$qo,ooo sum wus noL correcL
und decIIned Lo provIde un ex-
ucL hgure Ior LIe omce. We wIII
noL reIeuse (LIe renLuI hgure)
becuuse IL Is purL oI LIe conLrucL
LIuL we Iuve, buL cun dehnILeIy
LeII you LIuL IL wus one-LIIrd oI
the market rate. We tried to get
LIe besL reLurn on LIe money,
Ie wus quoLed us suyIng.
n u new noLe In UNCE
websILe LIe ugency suId LIe end
oI IoreIgn suncLIons und LIe
openIng up oI Myunmur Iuve
Ied rIsIng operuLIonuI cosLs Ior
Phyu Thit Lwin UN ugencIes und oLIer uId orgun-
IsuLIons. L suId spIruIIIng reuI
esLuLe prIces In Yungon Iuve puL
u sLruIn on UNCE resources us
UNCE`s renLs Iuve neurIy dou-
bled in the past three years.
n zo1z UNCE wus gIven
one years notice by the Minis-
Lry oI TourIsm und LIe owner
oI LIe Truders HoLeI Lo vucuLe
LIe premIses by mId-zo1, LIe
note said. The rate the Traders
HoLeI wus $1 per squure IooL
(ubouL $q,ooo per monLI).
Due Lo LIe rIsIng cosLs,
UNCE suId LIe orgunIsuLIon
seurcIed Ior new smuIIer prem-
Ises In vurIous IocuLIons In Yun-
gon (In BoLuLuung, KyuukLudu,
Pubedun, YunkIn, KumuyuL,
HIuIng, Muyungone und BuIun
LownsIIps) und cIose LIe mosL
cosL-emcIenL opLIon uvuIIubIe.
UNCE underLook un exLen-
sIve seurcI oI some qo premIses
or spuces. However LIe proper-
LIes were eILIer Loo expensIve,
Loo dImcuIL Lo reconsLrucL us
LIey were resIdenLIuI, were In-
complete buildings or held po-
LenLIuI rIsk oI oodIng, IL suId.
TIe UN ugency suId LIe cur-
renL omce premIses wus LIen
oered uL u compeLILIve renL
oI $z.qo per squure IooL.
TIe owner ugreed Lo beur LIe
uddILIonuI expense oI ensurIng
LIe new buIIdIng wus suILubIe
Ior UNCE`s work und pro-
vIded u ooosq IL sIde-buIIdIng
Iree-oI-cIurge.
L suId, Iowever, LIe renL Is
hxed Ior seven yeurs und IL Is u
compeLILIve commercIuI prIce
In u LougI murkeL. Some InLer-
nuLIonuI ugencIes Iuve Iud Lo
pay considerably more than our
$z.q per squure IL Ior suILubIe
spuce Lo uvoId IuILIng LIeIr pro-
grummes, IL udded.
UNCE suId sLundurd due
dIIIgence on LIe owner und Ier
IumIIy concIuded LIuL none oI
the international sanctions in
place until recently had been
IevIed uguInsL LIe IundIudy or
Ier ImmedIuLe IumIIy und no
crImInuI cIurges were exLunL.
Although allegations against
u member oI Ier IumIIy wIo
wus once u mem-
ber oI LIe prevIous
military regime
surIuced, LIe om-
cIuI Iud sInce IeIL
pubIIc omce und
Myanmar, Singapore
to Cooperate in
Construction Sector
T
he Myanmar Construction
Entrepreneurs Association
wIII cooperuLe wILI SIngu-
pore nsLILuLe oI BuIIdIng Im-
ILed (SB) Lo promoLe LIe buIId-
ing and engineering construction
technology in the country.
TIe Lwo ussocIuLIons sIgned u
memorundum oI undersLundIng
(MoU) on supporL oI consLruc-
tion technologies at the annual
unnIversury oI MCEA IeId uL LIe
Myunmur ConvenLIon CenLer,
Xinhua reported.
A three-day construction exhi-
bILIon BuIIdTecI Yungon zo1q
wus uIso joInLIy orgunIsed by
SpIere ExIIbILs PLe Ld, u sub-
sIdIury oI SIngupore Press HoId-
ing Co Ltd and MCEA.
Kyaw Min
wus noL subjecL Lo uny crImInuI
charges or international sanc-
LIons, UNCE suId.
AccordIng Lo un AP reporL,
severuI UN omces In LIe cILy
Iuve renLs oI Lens oI LIousunds
oI doIIurs u monLI, IncIudIng
a large complex housing the
World Health Organisation.
United Nations Childrens Fund
(UNICEF) . ,.~~.,_e q,~,
,..,.~~~ ~... ~..q~,
..'.: ,~~~ .....:.,q._~:.
._.:_~:..~_..~:._e ~...
~..q~,..'.: ~,~~~ ,..|....
..: .,q._ . ._ .~ . ~:.
~~__..~._.
~..:. .~ -q:~~ .~ ._:,._
~...~e- e...~..q.~
~ . ~ . ..q.~, _~ ..e:. - ...
.e:. .,~- -e,._.,eq
.~q,... ,,~~~ ~~e~~,.~:.
,..,.~_e.:.q...._~:. ~.e:
.q..:.:.._.
...: Bertrand Bainvel . AFP
. ~..q~,..'.: ~,~~~ .:
.. , ~, ._~: . ._.:_~:.. _.. , .., . :..
~.,~ ~.e:._.:_~:.q,~._.
_..,.._.
_.,.:...:~...q...,.q
.:.~.. (MCEA) . Singapore
I nstitute of Building Limited
(SIBL)~ ~.,_e _., .:. -..:~
. . .q.. . , .. ~ , e:,_ .
._:.:.~:._. ~ q, . ...| .. ._~: .
.q._.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
Myanmar Summary
Ditching Clunkers, Car Imports Drive Myanmar Oil Demand
Traders target new market at a time Asia awash with fuel
M
yanmar businessman
Lay has doubled the
number oI curs Ie
owns Lo sIx In jusL LIree yeurs,
us reIorms In SouLIeusL AsIu`s
pooresL counLry unIeusI u wuve
oI consumer spendIng.
TIe openIng up oI LIe econo-
my, wILI u IoosenIng oI mIIILury
ruIe endIng decudes oI IsoIuLIon,
Ius meunL u surge In ownersIIp
oI second-Iund Jupunese curs
LIuL ure repIucIng rusLIng, re-
condILIoned BrILIsI-eru veII-
cles and boosting demand and
ImporLs oI IueI.
OII demund muy Iuve soured
by us mucI us u quurLer In LIe
IusL hnuncIuI yeur Lo MurcI, gIv-
Ing oII Lruders u new murkeL uL
u LIme wIen AsIu Is uwusI wILI
IueI suppIIes due Lo u jump In
rehnIng cupucILy und cooIIng
demand in top buyers China
und ndIu.
Two oI Myunmur`s LIree
smuII rehnerIes bureIy IuncLIon,
meaning the country relies on
imports.
Myanmar has attracted a host
oI new suppIIers Irom smuII,
obscure oil traders to global
LrudIng gIunLs sucI us Truhguru
und VILoI, wIIcI ure nIppIng uL
LIe IeeIs oI IeudIng suppIIers
CIInuoII, PeLroCIInu`s Lrud-
Ing urm, und SIngupore`s HIn
Leong.
Fuel demand is also being
boosLed by more IucLorIes und
us u mInIng boom IIILs demund
Ior dIeseI Ior mucIInes und
trucks.
TIe SouLIeusL AsIun nuLIon
remuIns, Iowever, u LougI
murkeL Lo cruck gIven obsLucIes
rungIng Irom poor InIrusLruc-
ture to buyers being particular
ubouL LIe coIour oI IueI LIey
receIve, Lruders suy. ueI Is oI-
ten sold in glass bottles next to
LIe roud und muy be rejecLed by
drIvers unIess IL Is cIeur, Irre-
specLIve oI perIormunce.
To cuLer Ior IIgIer demund,
companies are planning to
buIId new oII sLoruge IucIIILIes
und InvesL In peLroI sLuLIons.
Under mIIILury ruIe, busIness-
Florence Tan and
Aung Hla Tun
mun uy Iud Lo wuIL Ior Iours
uL governmenL-owned IueI sLu-
LIons Lo hII up, buL now LIe
queues ure In LIe cIokIng LruI-
hc snurIIng Yungon`s poL-IoIed
streets.
OII used Lo be ruLIoned so we
onIy Iuve u IImILed umounL uI-
IocuLed Lo us, buL now IL Is eus-
IIy uvuIIubIe, suId uy, wIo dId
noL wunL Lo use IIs IuII nume.
Fuel demand rose more than
percenL Lo ubouL qo,;oo bur-
reIs per duy In LIe hscuI yeur Lo
MurcI, duLu Irom Myunmur`s
energy mInIsLry sIowed. BuL
Lruders suy undocumenLed IueI
ows, purLIcuIurIy oII smug-
gIed Irom neurby TIuIIund, muy
Iuve mude LIe rIse more IIke
zo-z percenL.
BeLween 1o und 1 Lrucks, or
ubouL 6,ooo Lonnes (qq,;oo
burreIs), oI dIeseI come Irom
TIuIIund eucI monLI, u Lruder
said. The energy ministry de-
clined to comment on smuggled
oil.
Reconditioned cors
Ike busInessmun uy, muny
oI IIs compuLrIoLs ure uIso re-
placing decades-old cars that
Iuve IImped uIong uILer be-
ing reconditioned numerous
LImes wILI ImporLed curs und
jeeps, mosLIy Irom Jupun under
u Lrude deuI beLween LIe Lwo
countries.
Pussenger cur ImporLs jumped
by u quurLer Lo 1,q68 In hs-
cuI zo1zJzo1 (AprII-MurcI),
wIIIe LIe number oI ImporLed
Lrucks rose 1o percenL Lo ;q,q6,
governmenL duLu sIows.
Oil imports into Myanmar
jumped uILer IocuI prIvuLe hrms
were uIIowed In uILer CycIone
Nargis disrupted supplies in
zoo8, buL LougI requIremenLs
Irom ImporLers und bud InIru-
sLrucLure Iuve IeIped CIInuoII
und HIn eong, wIIcI Iuve
more LIun IuII LIe murkeL be-
Lween LIem, enLrencI LIeIr
leading position.
OLIer seIIers IncIude PTT,
Thai Oil and Malaysias Petro-
nus, us weII us Koreu`s Duewoo
nLernuLIonuI, SwIss SIngupore,
Truhguru und VILoI .
Coution ogoinst rushing in
YeL, despILe LIe recenL surge
In oII ImporLs, some cuuLIon
against rushing into a market
wIIcI remuIns smuII.
Even by zozo-zoo, IL`s sLIII
goIng Lo be u very smuII murkeL
In LIe bIg scIeme oI LIIngs,
suId AIex Yup, unuIysL uL con-
suILuncy GE, conLrusLIng IL
wILI SouLIeusL AsIu`s Lop IueI
consumer ndonesIu, wIIcI Im-
porLed z,ooo bpd oI gusoIIne
und 11,ooo bpd oI dIeseI IusL
year.
Hin Leong is the largest sup-
pIIer Lo prIvuLe IocuI ImporLers
us IL cun depIoy ILs own Lunk-
ers operated by shipping arm
Oceun Tunkers, Lruders suId.
OnIy smuIIer Lunkers, curry-
Ing ubouL 6,ooo-1o,ooo Lonnes
oI oII, cun enLer LIe sIuIIow
Yungon RIver esLuury Lo reucI
Yungon und TIIIuwu porLs des-
IgnuLed Lo receIve oII.
There are currently no oil
pipelines in Myanmar.
Beyond InIrusLrucLure Ieud-
ucIes, suppIIers cun uIso be pe-
nuIIsed wILI u percenL prIce
cuL Irom buyers II LIey deIIver
u duy IuLe, Lruders suy. TIuL`s
enougI Lo wIpe ouL u murgIn oI
1-z percenL LIey mIgIL Iope Lo
muke Irom u suIe.
NoL every compuny cun deuI
wILI Myunmur, u SIngupore-
based trader said. They can go
InLo Myunmur IeeIIng very gung
Io, buL wIen LIey geL LIere IL`s
u IogIsLIcuI nIgILmure.
_., .:... :..q.. . , .q Lay ~.,
_e .- _._.._.:...q..~~
.:........._e..:....~._
. ....~~. ~:.... ...
~.~: ._.:~.....:._.
.. ~ . .. .q.~:...: ._. . .e
. . . .:.. : ~ .~, _e. .,. ~:. ~..
.~_..~:._e ...:..q.~.|.e..
_. .._~: ., ~. .~ q. ~:..:.._
_- ~ ...~ e: ~.e: ..:..,q:~
~.:. .~:.,q:e .:_~_. _e. ._ .
.~ . .. . ~. . . :._ .e.
_:..-....~..~.~_.
~~.~ q _. . ~_~ .. .~e .~ .:._e.
._ ~, ~ . ~ . e~ -~~e .
..:. ._~: . .q: .~e . .:.~~ ~
...~ ~ .. ~. . _ e. .:.,._ .
_., .:. -_., ._ ., . .~ ~...
...~,~....:.e..,._ ~
~~.._..~,~..'~ .:.
.:...,q._.
_., .:. ._ e. ~.|~ ~...
.:..~ . .. ~ . . .q.. . , ..:.
. ._ ~. : ~ . ~ _ ~ ..:._ e. ._
Chinaoil, PetroChina -.~.
~.~_~..:._e.._ Trafgura
Vitol . .~:.. Hin Leong
~ ~ .| . ..: .~ q ._ . .~ . ..
. ~. .~ ._ .~ , .:. .~ ~ ..e:
.q...,..:.q .~.:. ~:..:.-
.~e.~..~.:.~q _ .~~.~
q._.
Trafc at Shwegondine intersection on Kabar Aye Pagoda road in Yangon. The opening up of Myanmar`s economy, with a
loosening of military rule ending decades of isolation, has meant a surge in ownership of second-hand Japanese cars that are
replacing rusting, reconditioned British-era vehicles and boosting demand and imports of fuel.
K
y
a
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M
in

The Southeast Asian nation remains,

however, a tough market to crack
given obstacles ranging from poor
infrastructure to buyers being particu-
lar about the colour of fuel they receive,
traders say. Fuel is often sold in glass bot-
tles next to the road and may be rejected
by drivers unless it is clear, irrespective of
performance.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
26
Myanmar Summary
Myanmar Summary
AUTOMOBILE
Thai Unrest Spurs Honda Unit to Cut Output And Delay New Plant
Hondas Tai unit production cut to 60pc of capacity; Start of new plant to be delayed by up to 1 year
T
Ie TIuI unIL oI Hondu
Motor Co has cut produc-
tion at its Ayutthaya plant
Lo 6o percenL oI cupucILy Lo re-
ecL weuk domesLIc demund,
voIcIng concerns suIes muy IuII
sIorL oI ILs LurgeL LIIs yeur uILer
monLIs oI poIILIcuI unresL.
TIuIIund`s uuLo secLor, souLI-
eusL AsIu`s bIggesL, Is one oI
LIe more vIsIbIe vIcLIms oI LIe
weukened economy und unresL
wIIcI cuImInuLed IusL TIurs-
duy In urmy cIIeI GeneruI Pruy-
uLI CIun-ocIu LukIng conLroI oI
LIe governmenL In u coup.
TIe secLor Ius hred more LIun
o,ooo subconLrucLed work-
ers this year and slashed pro-
ducLIon, us suIes pIunge uILer
monLIs oI poIILIcuI unresL LIuL
LIreuLens Lo drIve some munu-
IucLurers osIore.
The Japanese carmaker has
also decided to delay by be-
Lween sIx monLIs und u yeur
LIe sLurLup oI u new $o mII-
IIon pIunL Irom ILs prevIousIy
pIunned AprII zo1 duLe, suId
PILuk PruILLIsurIkorn, execuLIve
vIce presIdenL uL Hondu AuLo-
mobile (Thailand) Co.
We Iuve been worrIed ubouL
LIe unIuvourubIe condILIons
sInce eurIIer LIIs yeur, boLI eco-
Pisit Changplayngam
A Honda Motor Co. employee carries a front grille for the Honda City on the production line at the companys assembly plant
at the Rojana IndustriaI Park, Ayutthaya Province, ThaiIand.
D
a
r
io

P
ig
n
a
t
e
lli/
B
lo
o
m
b
e
r
g
nomic and the political situa-
LIon, Ie LoId reporLers on LIe
sIdeIInes oI u murkeLIng evenL.
The Ayutthaya plant has an
unnuuI cupucILy oI oo,ooo ve-
IIcIes, wIIIe LIe new pIunL un-
der construction in Prachinburi
wIII Iuve un unnuuI cupucILy oI
1zo,ooo veIIcIes, Ie suId.
TIe producLIon cuL, wIIcI
InvoIved scruppIng overLIme
sIIILs, reecLs weuker demund
und uIms Lo cIeur unsoId sLock,
PILuk suId, uddIng ILs InvenLo-
rIes were now buck Lo normuI.
Pitak said Hondas sales in
Thailand may miss a target
oI 16o,ooo veIIcIes LIIs yeur,
wIIIe overuII domesLIc suIes ure
IIkeIy Lo IuII beIow 1 mIIIIon ve-
hicles.
Domestic auto sales in April
dropped .z percenL on LIe
yeur, uccordIng Lo duLu Irom LIe
ederuLIon oI TIuI ndusLrIes.
SuIes IeII ;.; percenL Lo 1.
mIIIIon curs In zo1.
DomesLIc suIes Iuve decIIned
sInce LIe endIng In zo1z oI u
governmenL hrsL-cur subsIdy
scIeme, wIIcI Iud boosLed
suIes 81 percenL LIuL yeur.
Reuters
Toyotu evelops Chips Ior Hybrid Curs to Boost Ioel Imciency
T
oyota Motor Corp has de-
veIoped u compuLer cIIp
Ior ILs gus-eIecLrIc IybrId
curs LIuL couId boosL IueI em-
cIency by 1o percenL und uIIow
the automaker to install the hy-
brId sysLem on more oI ILs veII-
cles.
TIe muker oI PrIus IybrIds
and auto parts maker Denso
Corp Iuve joInLIy deveIoped u
semiconductor using a silicon
and carbon compound that lim-
ILs power Ioss und uIIows Ior u
smuIIer IybrId sysLem, ToyoLu
suId IusL week.
A key wuy Lo Improve IueI
emcIency Is Lo Improve pow-
er semIconducLor emcIency,
KImImorI Humudu, u ToyoLu
engIneer, LoId u medIu brIehng.
Toyotas push in semiconduc-
Lors IIgIIIgILs Iow curmukers`
compeLILIveness Is IncreusIngIy
tied to electronics rather than
to traditional mechanical engi-
neering.
L uIso reveuIs LIe scope Ior
IurLIer ImprovemenLs In gus-
electric hybrid technology near-
Iy Lwo decudes uILer ToyoLu Ied
LIe murkeL wILI LIe IuuncI oI
LIe PrIus In 1qq;.
Yoko Kubota TIe new cIIp`s sIIIcon curbIde
compound is already used in
computer chips in trains and air
condILIoners, buL LIIs Is ILs hrsL
use In uuLomobIIe power cIIps,
Toyota said.
TIe buLLery oI u IybrId veII-
cIe cupLures energy Irom bruk-
ing that can aid the combustion
engIne und Improve mIIeuge.
TIe Power ConLroI UnIL (PCU)
suppIIes eIecLrIcuI power Irom
LIe buLLery Lo LIe moLor wIen
the car is running and charges
LIe buLLery wIen LIe veIIcIe Is
braking.
nsIde LIe PCU ure power
semIconducLors, currenLIy
mude Irom sIIIcon, LIuL conLroI
LIe ow und LIe dIrecLIon oI
electric current.
The silicon carbide chip re-
duces LIe umounL oI currenL
IosL us IeuL und swILcIes LIe
currenL ow on und o more eI-
hcIenLIy, uILIougI cosLs ure un
issue. The silicon carbide chip
cosLs uL IeusL 1o LImes more
LIun sIIIcon, Humudu suId.
AbouL zo percenL oI eIecLrIcuI
power Ioss In IybrId veIIcIes Is
currenLIy ussocIuLed wILI power
semIconducLors, Ie suId.
TIe new cIIps wIII uIIow Toy-
oLu Lo cuL LIe voIume oI LIe PCU
Lo one-hILI LIe currenL sIze und
reduce LIe weIgIL Lo ubouL q kg
Irom 18 kg, KeIjI Todu, u ToyoLu
engIneer, suId.
TIe sIze und weIgIL reduc-
LIons wouId suve IueI und po-
LenLIuIIy wIden LIe runge oI curs
LIuL couId be hLLed wILI u Iy-
brId sysLem, Todu suId.
ToyoLu, wIIcI Ius ucIIeved
percenL guIns In IueI emcIency
on proLoLype veIIcIes, pIuns
to start installing the chips in
ILs curs uround zozo, Humudu
suId, uILIougI IL does noL expecL
Lo ImmedIuLeIy ucIIeve LIe Lur-
geLed 1o percenL IueI suvIngs.
Reuters
B
lo
o
m
b
e
r
g
Toyota Motor Corp ~.,_e
,.- ~..... hybrid ~:..:.
- .:~..:..,.~:. ~~ q:..,.
..:..._ ~,.~: chip .:.
e,~..~q_.. hybrid .,.~:.
,.-~:..:.~ ~..._..__e.
._~:. .q._.
Prius hybrids ~.... ~:.
.. _ . ~ . . . _e. ._ Denso Corp
~.,_e ~..| chip .:.~:. ~:.
.:.- ...~..,..~:. ..:.q,
. hybrid .,. ~....:.e, ~ .. q,
~~~ ..~,. ~:,~.._..
q, . ...| .. . ..: . :.._ _e. ._~: .
~:.~....:.. ~ .~ .q:,.
._ . .~ . e.~ chip.:.~..
~. . _. .~:._e .., .~.~ . .
~,e:.~~~:~..e,
~.~: _.. .~q._.
Honda Motor Co - .. e,.
~.,_e _ ._ ~ .~e . ~:...: ~.:
. . . .q..~_ _ . . ._~: .q: .
~:.~...:._~~~ ~e.e
.~,- ~...~:. '~ q:..,.
~:. ..:..~:.__e.._.
.. ~:.~...q...,.
. ~.q.~:~:q- ~_ ~...~:.
~...._ _...._ ..:_~:.,
~ ...~.~_~.~~ General
Prayuth Chan-ocha ~:~:....~
._ ..- .~__ ... ...:.
.q. ~:...:.,.~~~~ _..:
._ _.,.~.._e.._.
e...~~. ~,~.- ~:.
~...q...,.~ ~..~~
..|. ....:. ..:.:._.. ~
....:.~:. .q:.~:.~....
..q..~__..~._~: ..:.
:.._.
~..| .,~:.~...~.,_e
e. ~~ -_.~ ~_..:~q,
q_ . , .:.._ ~..q ~, ..'.:
.,. ,~ ~, .~,~_..:~.~:.
._.:~.. ~... .,:~.~:.
.__e.._~:. Honda Automobile
(Thailand) Co - .~e~_ Pitak
Pruittisarikorn . ._.:_~:.:.._.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
27
Myanmar Summary
Myanmar Summary
Lenovo IY Prot Rises qpc As
Smurtphone Sorge OHsets Weuk Chinu
Revenue rises 14.3pc to $38.7 billion; Smartphone shipments reach record of more than 50 million units
C
IInu`s enovo Group Ld,
LIe worId`s IourLI-bIggesL
smurLpIone vendor, suw
neL prohL grow zq percenL Ior
LIe busIness yeur ended MurcI,
as strong smartphone sales
IeIped sIore up weuk growLI In
China.
enovo Is expundIng InLo
smurLpIones Lo oseL u decIIne
in its once-mainstay personal
computers (PC) as consumers
swILcI Lo mobIIe devIces, Lo LIe
extent that it agreed in January
to buy the Motorola Mobility
Paul Carsten smurLpIone unIL oI GoogIe nc
Ior $z.q bIIIIon.
TIe compuny, wIIcI becume u
gIobuI brund In zoo uILer buy-
Ing LIe PC unIL oI nLernuLIonuI
BusIness MucIInes Corp (BM),
also in January agreed to buy
BM`s Iow-end server unIL Ior
$z. bIIIIon us unoLIer wuy Lo
combuL sIow PC suIes.
CIIeI ExecuLIve Yung Yuun-
qIng suId LIe ucquIsILIons wouId
weIgI on hnunces In LIe neur
Lerm. BuL observers wIII now be
wuLcIIng Lo see wIeLIer u US
move Lo IndIcL CIInese mIIILury
omcers Ior cyber espIonuge wIII
uecL LIe ucquIsILIons, us LIey
ure sLIII subjecL Lo US reguIuLory
scrutiny.
However, LIe ucquIsILIons dId
noL Iuve un ImpucL on neL prohL
Ior LIe yeur LIrougI MurcI,
wIIcI rose z8.; percenL Lo
$81;.z mIIIIon, enovo suId In u
statement.
Revenue rose 1q. percenL Lo
$8.; bIIIIon. OveruII weukness
In CIInu wus oseL by growLI
ouLsIde enovo`s Iome mur-
keL - purLIcuIurIy Europe, LIe
MIddIe EusL und AIrIcu (EMEA)
und LIe AmerIcus - us weII us
a surge in the companys mo-
bIIe nLerneL unIL, Iome Lo ILs
smartphone business.
enovo`s smurLpIone unIL
sIIpmenLs ucIIeved u record-
IIgI IeveI oI over o mIIIIon Ior
LIe hscuI yeur, growIng by ;z
percenL yeur-on-yeur, drIven by
LIe sLrong growLI In CIInu und
emergIng murkeLs ouLsIde oI
CIInu, LIe compuny suId In LIe
statement.
Analysts see tough times
uIeud Ior enovo, suyIng IL muy
Luke uL IeusL unLII LIe end oI
zo1q Lo muke LIe ucquIsILIons
prohLubIe. n LIe meunLIme,
smurLpIone Ieuders Sumsung
EIecLronIcs Co und AppIe nc
wIII onIy InLensIIy compeLILIon,
they say.
SuIes In CIInu, LIougI sLIII
enovo`s IurgesL murkeL uc-
counLIng Ior uImosL Lwo-hILIs
oI revenue, rose u mere 1. per-
cenL Lo $1q.; bIIIIon durIng LIe
hscuI yeur.
TIuL wus oseL by jumps oI
z;.1 percenL Ior suIes In LIe
EMEA regIon und 1.1 percenL
in the Americas. The mobile
nLerneL und dIgILuI Iome busI-
ness unIL suw un 86.1 percenL
rIse Lo $.; bIIIIon.
SLronger growLI In ex-CIInu
murkeLs sIouId be u key drIver
oI suIes In (LIe smurLpIone)
segmenL, wroLe DuIwu CupILuI
MurkeLs unuIysL SLeven Tseng
In u noLe, beIore enovo`s eurn-
ings. Reuters
VoduIone Sees o1g Iurnings
Hit by Network Investment
B
rILuIn`s VoduIone suId
next years earnings
wouId be IIL by vILuI In-
vesLmenL In ILs neLwork, us IL
uguIn wroLe down LIe vuIue oI
some oI ILs Europeun busIness
- LIIs LIme by 6.6 bIIIIon - ow-
ing to tough market conditions.
SIures In LIe sLock dropped
q. percenL, wIpIng z bIIIIon
o LIe murkeL vuIue oI Vodu-
Ione - wIIcI Ius reporLed re-
cord IuIIs In underIyIng revenue
In LIe IusL 18 monLIs, und mude
severuI muILI-bIIIIon ImpuIr-
menL cIurges us IL gruppIes wILI
herce compeLILIon, reguIuLor-
imposed price cuts and con-
sumers wIo ure mukIng Iewer
cuIIs Lo suve money.
The latest charge takes the to-
LuI ImpuIrmenL hgure Ior Vodu-
Ione In LIe IusL Iour yeurs Lo
zq.q bIIIIon.
Kate Holton To hgIL buck, VoduIone Ius
stepped up spending on its net-
work - LIe hrsL umong ILs rIvuIs
TeIeIonIcu, DeuLscIe TeIekom
und Orunge Lo boosL ILs InvesL-
menL pIuns. AII Iuve reporLed
Iower prohLs due Lo compeLILIon
and the need to rebuild.
BuL beIore LIe spendIng und
ImprovemenLs cun kIck In,
VoduIone Ius suered purLIcu-
IurIy poor revenues In Germu-
ny, LuIy und oLIer Europeun
markets and said it had been
Iorced Lo wrILe down LIe vuIue
oI ILs usseLs ucross Europe due
Lo Iower projecLed cusI ows.
VoduIone conLInues Lo spIn
LIe pIuLes wILI mIxed success,
RIcIurd HunLer, Ieud oI equI-
LIes uL Hurgreuves unsdown
SLockbrokers, suId.
TIe wrILedowns ucross sev-
eruI Europeun regIons ure Iur-
LIer prooI oI LIe cIuIIenges LIe
compuny Is IucIng, wILI under-
IyIng prohL conLInuIng Lo move
In LIe wrong dIrecLIon.
VoduIone Ius eurmurked 1q
bIIIIon over LIe nexL Lwo yeurs
Ior InvesLmenL In Europe und
across its emerging market op-
erations in a bid to get ahead
oI ILs rIvuIs, uILer seIIIng ILs US
busIness In u $1o-bIIIIon deuI.
L Ius bougIL cubIe operuLors
In Germuny und SpuIn Lo In-
creuse LIe runge oI servIces IL
cun seII - beLLIng, IIke ILs rIvuIs,
on hbre-opLIc neLworks und
puckuges oI servIces combInIng
mobIIe und hxed-IIne pIone,
high-speed internet and TV to
uLLrucL cusLomers und boosL Iu-
Lure growLI.
n ILs mobIIe busIness, IL Ius
pInned ILs Iopes on LIe suIe oI
superIusL IourLI-generuLIon
mobIIe neLworks, or qG, und
suId IL Iud q.; mIIIIon qG cus-
Lomers ucross 1q counLrIes. Eu-
rope has lagged regions like the
UnILed SLuLes In roIIIng ouL qG
und mucI oI VoduIone`s spend-
Ing wIII go on LIIs deveIopmenL.
VerIzon, VoduIone`s Iormer
US purLner, Iud z6. mIIIIon
qG subscrIbers by LIe end oI LIe
hrsL quurLer.
L Is LIme Lo muscIe up,
VoduIone`s CIIeI ExecuLIve VIL-
LorIo CoIuo LoId reporLers oI
IIs spendIng pIuns, descrIbIng
LIe move Lo qG us u poLenLIuI
changing point in the compa-
nys history as customers using
it tend to use more data and
spend more. Reuters
S
im
o
n

D
a
w
s
o
n
/
B
lo
o
m
b
e
r
g
~.:.~~~_~... ..~e,.~
..._e.._ ~,~.- Lenovo
Group Ltd . .~.~ _......_
e._:.q...~~. ~.:.~
~_.~ q:..,. ~.~~.._~:.
._~_:. _. .. .:._ ..~ e , ..q: .~:.
_e ~,~- ...:..q.....~..~:.
~:.~,..._.
Lenovo - ..~e,..q:.~:.
_.~.._ ,.- ~.~e.q..
~ , .~:.q: .~:. ~. .... _. .
.....:.~:. Google Inc -~.
~.._e.._ Motorola Mobility
~:. ~..q~,..'.: ...
.e_e ~eeq, ~,,~|q~
..:~_.qe_.._e ...:.
._.
International Business Machines
Corp (IBM) -~. ~ e .q. .~ , .
~:e,.~:. ~ee~: ~~ ...
~ ~.:~.~.~_.~.~~..
~.._e.._ ~..|~.~~.,_e
~, ,~|q .~~ . IBM -.:-:e ,.
~:. ~..q~,..'.: ...
.e_e ~eeq, ~,,~|q.~~.
..:~_.qe~: ~.~e.q..
~ , .~:.q: .~:. , . ~. ~:. _. ~
q, ....:.._.
~...:.. Yang Yuanqing .
~..|q..._.....:.._ ._~:.
~ . ._~.~, . . _e. .:. ._~: . ._.:
_~:..._.
B
lo
o
m
b
e
r
g
_-~,- Vodafone ~.~. ,.~
~.,_e .q:....:..q...,..:.
~ e , ' ... ' . e .... , ..:.
~. .. . . . _~ .~ q._ ~~ ~
.:._ . . - ~_ .~ .:.~:. , .-
~,q~~ .q._e. q..._.....
_~ .~ . e e q ._~: . ._.:_~:.. ._ .
..~:...~~~ qee: , ...
, q:..,. ~..._.. Vodafone
...~~~,e..:._. ~ .~~.
~....~_e. e,...e ~..
.._.
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
28
INTERNATIONAL AND DOMESTIC FLIGHT SCHEDULE
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir
TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
*PPleaasee noote thee dday change for the deparrture time too Hong Kongg.
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 13:00 14:00 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
Myanmar Summary
Myanmar Summary
Samsung Introduces Curved
UHD TV in Myanmar
S
amsung Electronics has
unveIIed ILs new curved uI-
Lru IIgI dehnILIon (UHD)
TV in Myanmar.
TIe SouLI Koreun eIecLronIcs
gIunL IeId LIe hrsL InLroducLIon
ceremony Ior ILs Curved UHD
TV Ior SouLIeusL AsIu uL HoLeI
SuIe-SIungrIIu In Yungon.
Sumsung InLends Lo Ieud u
new eru oI UHD TV wIIcI cun
produce close to natural picture
und gIve unIque vIewIng expe-
rIence Lo our SouLIeusL AsIun
customers.
TIe new UHD TV, wILI ILs
new sound sysLem, wIII gIve
IumIIIes new enLerLuInmenL
experIence, suId Num SIkAIn,
munugIng dIrecLor oI Sumsung
Electronics.
TIe Curve UHD TV Is uvuIIu-
bIe In 6- und -IncI sIzes. TIe
dIumeLer oI LIe curved screen Is
q.z meLre.
Kyaw Min
K
y
a
w

M
in
Ooredoo Joins MIT Media Lab for ICT Innovation
New Collaboration supports cutting-edge research and development of Innovation Ecosystem in Southeast Asia, telecoms frm says
O
oredoo has announced a
new coIIuboruLIon wILI
MT MedIu ub In u bId
Lo drIve cuLLIng-edge CT In-
novuLIon und reseurcI, LIe hrm
said.
Ooredoo joIned MT MedIu
Lab as a Consortium Lab Mem-
ber. SInce 1q8, LIe MT MedIu
Lab has pioneered some uncon-
venLIonuI reseurcI In LIe CT
sector.
Ross Cormuck, CEO oI Oore-
doo Myunmur, suId: CT Is rup-
IdIy convergIng, und our cus-
tomers in emerging markets are
quIckIy udopLIng mobIIe devIces
und InLegruLIng CT InLo every
uspecL oI LIeIr duIIy IIves.
By joInIng LIe MT MedIu
ub, we wIII be ubIe Lo Ieveruge
InnovuLIve reseurcI Irom one oI
LIe worId`s IeudIng InsLILuLes Lo
deIIver dIsrupLIve InnovuLIons
und new IIIe-enIuncIng prod-
ucLs und servIces our cusLom-
ers.
Phyu Thit Lwin
He suId Ooredoo wIII work
wILI LIe MT MedIu ub In Iu-
cilitating and supporting the
deveIopmenL oI u Iurger Inno-
vuLIon ecosysLem In SouLIeusL
Asia.
TIrougI ILs work wILI LIe
reseurcI IuboruLory, Ooredoo
A
n
d
r
e
w

T
h
o
m
a
s

R
y
a
n
wIII Iook Lo umpIIIy Innovu-
LIve LIInkIng deveIoped In LIe
MT MedIu ub, enguge wILI
reseurcIers, und uccess mem-
ber evenLs Lo vIew new MT re-
seurcI, LIe LeIecoms hrm suId.
L wIII uIso Increuse ILs eorLs
to share intellectual property
rIgILs on LecInoIogy deveIoped
LIrougI LIe coIIuboruLIon, IL
added.
JoI Lo, dIrecLor oI LIe MT
MedIu ub, suId: We weIcome
Ooredoo us u member oI LIe
MT MedIu ub und Iook Ior-
wurd Lo coIIuboruLIng on Inno-
vuLIve LecInoIogIes LIuL Iuve
the potential to impact millions
oI peopIe uround LIe worId.
n recenL yeurs, Ooredoo Ius
supporLed InILIuLIves Lo deveIop
u new generuLIon oI soIur-pow-
ered compact base stations and
IuuncIed some mobIIe vuIue-
udded servIces sucI us mobIIe
money and mobile health
TIe MT MedIu ub counLs
more LIun ;o gIobuI members
ucross LIe heIds oI eIecLron-
Ics, enLerLuInmenL, IeuILI, und
LeIecommunIcuLIons. ucuILy,
reseurcI sLu, und sLudenLs
work ucross z reseurcI groups
on more LIun o projecLs In-
cIudIng InnovuLIve dIgILuI InLer-
Thuilund Selects Omce 6g Ior
Every Student Nationwide
Microsoft Tailand and Ofce of the Basic Education Commission sign fve-year
agreement.
T
IuIIund`s Omce oI LIe Bu-
sic Education Commis-
sIon (OBEC) und MIcro-
soIL (TIuIIund) Ld Iuve sIgned
u memorundum oI undersLund-
Ing LIuL wIII provIde 8 mIIIIon
sLudenLs und qoo,ooo LeucIers
ucross TIuIIund wILI Iree uccess
Lo MIcrosoIL Omce 6 Ior edu-
cation.
TIe ugreemenL, wIIcI uIso In-
cIudes LIe exLensIon oI LIe PurL-
ners In eurnIng InILIuLIve Lo
zo1q, represenLs LIe sIngIe bIg-
gesL cIoud servIce depIoymenL
Ior MIcrosoIL In LIe educuLIon
sector globally.
OBEC und MIcrosoIL Iuve en-
joyed 1o yeurs oI coIIuboruLIon
Ior LIe beLLermenL oI TIuIIund`s
IuLure under PurLners In eurn-
Ing, suId OBEC SenIor AdvIsor
In TecInoIogy Ior TeucIIng und
Learning Anek Ratpiyapaporn.
TIIs InILIuLIve wIII pIuy u key
roIe In our prepuruLIons Ior
ASEAN EconomIc CommunILy
InLegruLIon und drIve LIe de-
veIopmenL oI z1sL cenLury skIIIs
LIuL ure vILuI Lo LIe SmurL TIuI-
Iund zozo sLruLegy, wIose key
objecLIve Is Lo IosLer susLuInubIe
nuLIonuI growLI und ruIse LIe
sLundurd oI IIvIng LIrougI LecI-
noIogy, RuLpIyupuporn udded.
ConceIved In zoo, PurLners
in Learning is a global Micro-
Wai Linn Kyaw soIL progrum LIuL IosLers In-
novuLIve use oI LecInoIogy In
education to help students and
LeucIers uround LIe worId mux-
imise their potential.
HuresI KIoobcIundunI,
munugIng dIrecLor oI MIcrosoIL
(TIuIIund), suId, TIIs memo-
rundum oI undersLundIng un-
derscores our long-term com-
mitment to Thailand and our
vIsIon oI u IoIIsLIc LrunsIormu-
LIon oI LIe TIuI educuLIon sys-
Lem. TIrougIouL MIcrosoIL`s
zo yeurs In TIuIIund, we Iuve
InvesLed $.z mIIIIon (16 mII-
IIon THB) In TIuI educuLIon us
purL oI our vIsIon oI We Muke
;o MIIIIon Ives BeLLer.
Two mIIIIon unIversILy sLu-
denLs und sLu members ure uI-
reudy LukIng udvunLuge oI cIoud
LecInoIogy LIrougI Omce 6
Ior educuLIon, und LIIs Iund-
murk purLnersIIp wILI OBEC
wIII Increuse LIe number oI us-
ers Lo more LIun 1o mIIIIon,
Khoobchandani said.
A zo1 DC sLudy commIs-
sIoned by MIcrosoIL Iound LIuL
prohcIency wILI MIcrosoIL OI-
hce uppIIcuLIons runks IIgI uL
No. oI LIe Lop zo In-demund
skills globally. The study also
Iound LIuL zq percenL oI IIgI
growLI or suIury occupuLIons
cuII Ior MIcrosoIL Omce or MI-
crosoIL Omce-reIuLed skIIIs,
sucI us word processIng,
spreudsIeeLs und hnuncIuI re-
porting.
WILI young peopIe beLween
LIe uges oI 1 und zq IormIng
LIe IurgesL segmenL oI LIe un-
empIoyed In TIuIIund, LIere Is
u pressIng need Lo drIve Lruns-
IormuLIonuI cIunge In educu-
LIon, suId AnLIony SuIcILo, vIce
presIdenL oI WorIdwIde PubIIc
SecLor EducuLIon Ior MIcrosoIL.
Ooredoo _.,.:._ ..~.q ._..
ICT ., ... ~ . .:.~ ~. : ,:._
.~: MIT Media Lab . ....|.
..:q~.:.._e .q._. MIT
Media Lab ._ ~ ....._
ICT ,_ .._:..:~~ ._.:.._
~...:..:.~ ~,._.....
_e.._.
Ooredoo _.,.:-~...:~q:q
.. Ross Cormack ~ ..,~.,
e: ICT ,_ .._:q . . _., _.,
~ .~~ .:. .~ ._~: , ... .
.. .~ ~ .~ . :q ~ . .. . .~ e:
...~.._..~ ~.._._.. .~q
.,.~.~.: .:. ICT ~
~. ...:.,_~~:.~ q.|~e..|._~:
MIT Media Lab , ....|...:q~
.~:.|''e ._.:.._.
Iuces, IoIogrupIIc TV, roboLIcs,
IemLo-pIoLogrupIy und Inno-
vuLIve modes oI LrunsporLuLIon
Ior susLuInubIe cILIes.
Samsung Electronic ._ ~.q
.~: ~:q ~ , .-... ..:~
.~,.....q...~ ..:..._
Curved UHD TV .~.~.~...
~,:.~ .. ~' q~.,~ Sule
Shangrila Hotel ~ ~...._.
~~, ...~~_.~ ~,.~:~
Samsung e: ~.q.~:~:q
~~~ UHV TV .~~ .:~,
~, ... . ..e: _..... ~ ~q_ ~.. .
.. ~ ..: _~ ...._.. , . _. . _~:.
..~ .. ~ ...: . e q_ q e :.
.|~e . . , . _ . . _ ~:.~.. .~ ,
~, .~: ~ q ., ... ~ :.~
~..,..~e: ..:...~~~~
.e:._e.q.~.~~_~~ .,:~~.
. _. .... . :~. , .|. ''e Samsung
Electronic - .,.,..|,~~:
Mr. NamSik Ahn ~ ._ .:_~:..
._.
..- OIfce oI the Basic
Education Commission (OBEC)
. Microsoft (Thailand) Limited
~ ._ .. q .~: ..:..~: ..
q..,.. .q: .q:. ,~~,~~~ ~
~:. MicrosoIt OIfce 365 ~:.
._:.q.~~ ~ ~.. ~. ._.. ...q,
,:.._..:.,.:~:. -.e..,~
....._~:. .q._.
~. .|..:~ _ .~ ~ . _~:.
..e.~ ....|...:q~..:.
~:. ~~ ...~ ~._..:.q,
.|~_.. Microsoft - ~.:~.~..
._:.q.~ cloud service_ . ..
~.,_e _~..:.._ ....:.~
~.._e.._.
OBEC , Microsoft ~e: .
.~,:~~~~ ._~:...e
. . ...| ...: q ~ .q...| .. .~:~
.: ~~ ......|.....:_~.:_e.
.|~e''e Anek Ratpiyapaporn .
._.:_~:.._ .
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
Nokia Siemens Networks Briefng on Mobile Telecommunication
Regulatory Update and Market Developments in the Region
U Khin Maung Tet, director general of Post and Tel-
ecommunications, gives a speech at the event.
Wai Linn Kyaw
Raman Vattumalai, NSN Country Head of Myanmar,
speaks at the event. Wai Linn Kyaw
Wolfgang Becker, CTO Network solution makes a Presenta-
tion at the event. Wai Linn Kyaw
Saiful Md Ehsan gives a presentation at the event.
Wai Linn Kyaw
Mike Smathers makes a presentation at the event.
Wai Linn Kyaw
Brian Cho makes a presentation at the event.
Wai Linn Kyaw
Delegates pose for a photo at the event. Wai Linn Kyaw
Raman Vattumalai (L) gives present to U Khin Maung Tet
(R) . Wai Linn Kyaw Staf pose for photo at the event. Wai Linn Kyaw Guests at the event. Wai Linn Kyaw
Introduction Event of Samsungs Curved and Ultra
High-Defnition (UHD) TV
Nam Sik Ahn, managing director of Samsung Electronics Myanmar.
Kyaw Min
Donation ceremonary at YCDC. Mileage Communication
Kaythre Aye Tan speaks at the event. Kyaw Min Samsung delegates at the event. Kyaw Min
Models pose for a photo with Samsung curved TV.
Kyaw Min
Myanmar Chungho Donate
Clean Water Machine to YCDC
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
31
May 29-June 4, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
Myanmars Islands Are Asias Hottest New Destination But Theyre Still Deserted
Marty Silk
T
he thing about Myan-
mars Myeik (Mergui)
Archipelago is there are
no tourists.
WrILLen o by LIe BrILIsI,
LIen seuIed o by Myunmur Ior
uImosL IuII u cenLury, LIe My-
eIk ArcIIpeIugo Is hnuIIy open
Lo IoreIgners - buL onIy LIose
on selected tour groups.
Keen to escape the daily
grInd, `ve joIned un nLrepId
TruveI group on u sIeek new
catamaran sailing through this
IosL worId Ior hve duys.
As the southern Myanmar
cILy oI KuwLIuung sIIps ouL oI
vIew, LIe drone oI cIvIIIsuLIon Is
repIuced by LIe sound oI Lrude
wInds sLIrrIng Ieuves und puny
wuves IuppIng deserLed wIILe-
sund beucIes. OccusIonuIIy,
see sIgns oI oLIer peopIe - LIe
dIsLunL Iumps oI u squId hsI-
ing boat or some sea gypsies
Irom Myunmur`s eLInIc Moken
group puddIIng wooden cunoes.
BuL LIese IusI green pIeces oI
paradise are mostly deserted.
I AsIu Ius u cupILuI oI LrunquII-
IILy, LIIs Ius Lo be IL.
On LIe second mornIng we
hnd u IocuI squId bouL uncIored
neurby und our Myunmur guIde,
HeIn, Lukes me over on LIe dIn-
ghy to try to get lunch.
TIe IeuvIIy LuLLooed hsIer-
men on deck IuppIIy Iund over
u buckeL oI IresIIy cuugIL squId
In excIunge Ior hve coId cuns oI
Iemonude. L seems un uneven
trade but Hein disagrees.
Money Is no good Ior LIem uL
seu, LIey IIke drInks, Ie expIuIns.
TIe squId Is weIcomed by
our on-bourd cIeI, Soe, wIo
prepures u scrumpLIous sLIr Iry
Ior IuncI.
soon Iound ouL LIuL Mr Soe
is a culinary genius. He pro-
duces Iour dIerenL dIsIes wILI
rIce uL every IuncI und dInner
in his tiny galley. Only once or
LwIce do we euL LIe sume dIsI
uL Lwo meuIs.
uLer on LIe second duy we
Children on Myanmars Lampi Island.
Looking across the Andaman Sea to Myanmars Myeik (Mer-
gui) Archipelago.
Moken boats of the Myeik (Mergui).
One of the many deserted beaches found throughout the ar-
chipelago.
puddIe kuyuks up u wIndIng
mungrove creek on u Iuge de-
serted island called Lampi.
SIImmerIng buILhsI scIooIs
Ieup Irom LIe wuLer, und Iur-
LIer upsLreum, u monILor IIzurd
suns ILseII on un overIungIng
bruncI. WILI no sIgns oI Iu-
mun IIIe, LIe IoresL Is deud sLIII
und HeIn spooks us wILI LuIes
oI wIId eIepIunLs roumIng LIe
undergrowLI. TIe gIussy, sLug-
nant creek looks like it could
IIde snukes or worse, buL we
pusI on, IeeIIng udvenLurous.
EvenLuuIIy grow LIred und
`m secreLIy gIud wIen we come
ucross u Iurge IuIIen Lree Lrunk
bIockIng LIe creek, IorcIng our
retreat.
Buck on LIe cuLumurun Mr
Soe Ius LIougILIuIIy IuId ouL
cukes und Leu Ior un uILernoon
snack.
wuIL IuII un Iour beIore
jumpIng InLo LIe wuLer Ior u
quIck puddIe.
uLer In LIe evenIng we euL
dInner wuLcIIng LIe sun meIL
InLo LIe Andumun Seu, spreud-
Ing rIbbons oI ocIre, orunge
and deep purple through the
Inky wuLer.
TIe nexL mornIng, sIp coee
wuLcIIng LIe sun creep buck up
over LIe buy us bIrdsong hIIs
umpI`s IoresLs.
Iuve unoLIer swIm und on
cIImbIng buck ubourd see Mr
Soe Ius IuId ouL bucon und egg
sundwIcIes wILI more coee
Ior breukIusL. Soon we puII up
uncIor und `m dIsuppoInLed Lo
Ieuve LIIs beuuLIIuI pIuce.
BuL uILer u mornIng`s suIIIng
we hnd ourseIves In yeL unoLIer
deserLed wonderIund - SwInLon
sIund.
We don snorkeIs und swIm
uround u rocky poInL wIere
Iundreds oI brIgILIy coIoured
hsI durL LIrougI coruIs.
TIe beucI Is IuII oI ucLIvILy
us scores oI IermIL crubs drug
LIeIr sIeIIs up und down LIe
IoresIore; IL`s u sIIenL crusLu-
cean peak hour.
By IuLe uILernoon reuIIse
we`ve gone LIe wIoIe duy wILI-
out seeing anyone else.
As nIgIL IuIIs, LIe ever Indus-
trious deckhand Mr Win scales
un enormous cII Lo coIIecL
wood Ior u bonhre.
We coIIecL bruncIes Irom
the bottom and lob them on a
Iuge Ieup wIIcI wIII IIgIL up
our own prIvuLe soIree on LIe
beach.
Mr WIn uLLends Lo our bonhre
wILI LIe uLLenLIon oI u hremen
on a steam engine.
Mr Soe prepures unoLIer
perIecL meuI: cIIcken curry,
IresI hsI cooked on LIe couIs,
crunchy tangy salads and coco-
nut rice.
WILI our beIIIes IuII, we drInk
beer, sIure sLorIes und IIsLen
to music through a portable
speuker wIIIe u bIunkeL oI sLurs
sIInes down on us.
Theres no other people on
LIIs wIoIe IsIund, someone
observes.
n IucL LIere`s no one eIse
unywIere neur Iere. How
muny LImes wIII you Iuve LIIs
Is your IIIe? Iook InLo LIe
crackling embers and smile
contentedly.
Our skIpper, u young SouLI
AIrIcun suIIor cuIIed MIIes, LeIIs
us some oI LIe IsIunds, IncIud-
Ing LIIs one, Iuve been bougIL
up us Iund Ior resorLs.
He seems unconcerned that
IL`s LIe IusL LIme LIe Lour wIII
vIsIL SwInLon.
TIere`s uIwuys oLIers
uround Iere, Ie smIIes,
gesLurIng Lo LIe vusL seu LIuL`s
been our Iome Ior LIe pusL Iour
days.
Myunmur`s governmenL Ius
been openIng LIe ureu very
cureIuIIy und sIowIy.
Perhaps it understands the
need Lo preserve LIe LrunquIIII-
ty that makes this place special.
L`s InevILubIe LIuL LIe MyeIk
ArcIIpeIugo wIII evenLuuIIy
cIunge Iorever, buL rIgIL now,
LIe puce oI deveIopmenL IeeIs
us sIow us our cuLumurun cIug-
gIng beLween LIe IsIunds.
GeLLIng LIere: L`s quILe dIm -
cult to get to the Myeik (Mer-
guI) ArcIIpeIugo, buL nLrepId
TruveI oers peopIe u cIunce Lo
expIore wILI ILs Burmu SuIIIng
LrIp Irom $1,8q per person.
The nine-day trip ex-Phuket
includes six nights on board
u suIIIng cuLumurun und Lwo
nIgILs In u IoLeI wILI mosL
meals included.
SLuyIng LIere: TIe cuLumurun
Ius cosy cubIns wILI IuLcIes
leading onto the main deck.
TIe bed Is Lwo sIngIe muL-
Lresses pusIed LogeLIer, wILI u
curLuIn dIvIdIng LIem. So un-
Iess you LruveI wILI u purLner or
IrIend you muy Iuve Lo sIure u
Iurge doubIe bed wILI u sLrun-
ger, buL mosL LIme Is spenL on
deck unywuy.
PIuyIng LIere: nLrepId pro-
vIdes snorkeIs, hsIIng rods,
kayaks and paddleboards. As
uII meuIs und wuLer ure IncIud-
ed, LIe crew uIso seII gIusses oI
wIne Ior ubouL A$ ($z.;8) or
cuns oI beer Ior ubouL A$1.o
($1.q). AII you`II need Lo brIng
Is your cIoLIes, u LoweI und u
puIr oI wuIkIng sIoes. AAP
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