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Myanmar Business Today is Myanmar’s first and the only bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories. For more information please visit www.mmbiztoday.com.
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Myanmar Business Today is Myanmar’s first and the only bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories. For more information please visit www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday Twitter: @mmbiztoday
Google Plus: https://plus.google.com/107379179269023670071/posts
Linkedin: http://www.linkedin.com/company/myanmar-business-today
Myanmar Business Today is Myanmar’s first and the only bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories. For more information please visit www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday Twitter: @mmbiztoday
Google Plus: https://plus.google.com/107379179269023670071/posts
Linkedin: http://www.linkedin.com/company/myanmar-business-today
mmbiztoday.com mmbiztoday.com July 24-30, 2014| Vol 2, Issue 29 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL Myanmar Summary Inside MBT Education Reform: Lessons for the Future P-21 Miners Face Permit Delays As Parliament Debates New Bill Phyo Thu M yanmars min- ing enterprises are facing delays in receiving permits af- ter a newly proposed bill aimed at relaxing the cen- tral governments exclusive control over mining opera- tions in the country stirred debate in the parliament. The Mineral and Resource Committee of the Upper House recently drafted a new mining bill and submit- ted it to the Lower House. The Bill Committee of the Lower House said a provi- sion in the bill that allows joint mining operations between the central and regional governments goes against the countrys consti- tution. We need to discuss fur- ther as [the new bill] con- tradicts the constitution, told Dr Soe Moe Aung, a member of the Bill Com- mittee. Dr Soe Moe Aung said the newly proposed bill must be closely analysed to ensure regional gov- ernment mining doesnt undercut the countrys constitutional framework. State and regional govern- ments will discuss the pro- posal in their respective parliaments to resolve the dispute, he said. A mine operator from Kayah state told Myan- mar Business Today that mInIng hrms` permIL re- quests will be delayed by the governments revision process. The delay to get min- Ing heId permILs wIII uecL the development of special areas, he said, referring to Myanmars underdevel- oped und conIcL-rIdden states such as Kachin and Kayah, which are rich in mineral resources. In June, Myanmar was accepted as a candidate country to the Extractive Industries Transparency Initiative (EITI) which requires the union gov- ernment to disclose the hnuncIuI sLuLemenLs und agreements between the state and mining compa- nies to the public. Ko Win Aung from the multi-stake holder group that is coordinating My- anmars accession into the EITI, an international standard that ensures transparency around countries oil, gas and mineral resources, said his group doesnt accept constitutional restrictions preventing regional gov- ernments from operating mInIng heIds In LIeIr re- spective states. These restrictions should not exist, Ko Win Aung told Myanmar Business Today. The EITI requires My- anmar government to produce social impact as- sessment reports and en- sure that any mining bill passed takes into account all industry stakeholders. e. .~ ~ ....~ ..~ . ~_ _. . . , ~ .~~. . . . . , .. . ~ . ~~ ~ ~. , _~, _~:. .:._e. ..'.,_. . ~.~ ~. _e. ..'.~ q ._~: . .~ ~..e:.q.. ., . .:.. . q ._ . .~q~ .~~....~ _. . . . :.~ . q:. ~ .~: .:.~~ . ..... .. .:. _.. . q..__e._.. ~...._~.. _._,e~..q~e.:.~ .. ~ . .... .q.. :._ . ~._.. .... _ ~ . .q ._~: . .|q ._e .. ... .._ ~. ~ .: q.,...._~:. _._..~ .~:..._~...~:.~. .q ._. _.,.:.~~....~ ~ ...:..~.~:.~. .e ~:~.~: .~ ~.q.. ~ . . . ~:_ ._ . . ~ .~: ... _ ~. ..~: .~ ~~._.. ... . ._ ..:.~ . q:_ ._ ,e . ~ ...._~ .. ~. .q ~e. .~.q:~,_~._:,. , . ..|._ ~e . ~ ..e: . ...q, .._~.~~ .:~ _.. _. ._e.._. _., .:. -.~ ~ .. . , . .:.~~. ~:.,_..~~_e. q.,..: ETA/ SIA ~_., ..:.~ EITI .~_e.q.: .,~ .~.q:~.q..: .:._..~: ..:q~.:.q._ _e. ~: _., .: .~..._. . ._ .~..._~..~..' .q.~~~._. .~.~:.:. ~~ .. . .. ... .q .._ _e.._. Government Inspects Manufacturing Businesses for Licences P-6 Labour Requirements Growing Throughout Myanmar P-7 A woman digs for sulphur sand near a Chinese copper mining dump in Sarlingyi township at Sagaing division. S o e
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T u n / R e u t e r s July 24-30, 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 Deputy Editor - Aundrea Montao Email - aundrea.montano@gmail.com Editor-in-Charge - Wai Linn Kyaw Email - linnkhant18@gmail.com Ph - 09 40 157 9090 Regional Editor - Tom Stayner International Editor - David Ross Reporters & Contributors Htun Htun Minn, May Soe San, Kyaw Min, Wai Linn Kyaw, Aye Myat, Aung Phyo, Zwe Wai, Phyo Thu, David Mayes, Sherpa Hossainy, Aundrea Montao, Tom Stayner, David Ross, Jacob Goldberg Art & Design Zarni Min Naing (Circle) Email - zarni.circle@gmail.com Ko Naing Email - nzlinn.13@gmail.com DTP May Su Hlaing Translators Aye Chan Wynn, Wai Linn Kyaw, Phyu Maung Advertising Seint Seint Aye, Moe Hsann Pann, Htet Wai Yan, Zin Wai Oo, Nay Lin Htike Advertising Hotline - 09 420 237 625, 09 4211 567 05, 09 31 450 345, 09 250 411 911, 09 2500 18646 Email - sales.mbtweekly@gmail.com Managing Director Prasert Lekavanichkajorn pkajorn@hotmail.com 09421149720 Publisher U Myo Oo (04622) No. 1A-3, Myintha 11 th Street, South Okkalapa Township, Yangon. Tel: 951-85000 86, 8500 763 Fax: 951-8603288 ext: 007 Shwe Naing Ngan Printing (04193) Printing Subscription & Circulation Aung Khin Sint - aksint2008@gmail.com 09 20 435 59 Nilar Myint - manilarmyint76@gmail.com 09 4210 855 11 Khaing Zaw Hnin - snowkz34@gmail.com 09 4211 30133 Myanma Ai rways si gns for si x ATR 72s Myunmu AIrwuys Ius conhrmed ILs InLeresL In ATR;z- 600s, by placing orders for six of the type and options on six more at the Farnborough air show last week. The state-owned carrier, which is to branded Myan- mar National Airlines soon, will start taking delivery of the aircraft in 2015. Deliveries will run until 2017. The airline aims to replace its Fokker F28 regional jet and Xian Aircraft MA60 turboprop with the ATRs, while it already operates three ATR72s. Myanmar phar ma sector expected to gr ow 10- 15pc Myanmars pharmaceutical industry is expected to grow 10-15 percent a year due to higher government spending on healthcare, the Myanmar Pharmaceuti- cal and Medical Equipment Entrepreneurs Association said at an expo. Myanmars pharmaceuticals market is now estimated to be worth about $100 million to $120 million, but the industry imports more than 90 percent of the products. Indian suppliers enjoy the largest share at 35.4 percent, followed by Thailand, China, Pakistan, Bangladesh, South Korea and Indonesia. About 60 per- cent of all products are sold in Yangon and Mandalay. There are only 10 domestic manufacturers. South Kor ean owner sued for closi ng factor y wi thout compensati on TIe ubour MInIsLry Ius hIed u IeguI suIL uguInsL LIe South Korean owner of Master Sports Shoe Factory, in Hlaing Tharyar Industrial Zone outside Yangon, for closing it without paying compensation to the workers, local media reported. Over 800 workers staged a pro- test march in front of the South Korean Embassy last TIursduy sInce LIeIr owner Iud ed wILIouL puyIng compensation. J apan eyes Myanmar for r aw r ubber Japan is to provide state of the art technology to process ruw rubber und boosL IocuI producLIon In u bId Lo hnd u new supply for its tyre manufacturing industry. According to an agreement between the Myanmar Rubber Planters and Producers Association and Japanese manufacturers, Japan will provide technology to produce high-quality raw rubber in Yangon, Bago and Mon regions in return for ex- ports. Japanese tyre production needs between 700,000 and 800,000 tonnes of rubber a year. Shwedagon Pagoda Vi si tor Number Goes Up 14pc i n Q1 The number of foreign tourists visiting Yangons SIwedugon Pugodu Ius reucIed zq,86 In LIe hrsL half of 2014, up 30,000 from the same period last year, according to the pagodas Board of Trustees. During the six-month period, visitors in January topped with 50,398, followed by February with 60,691 and March with 49,599. Thai visitors accounted for the most. The entrance fee for foreign visitors was $8, taking the total earning from the tourists to $1.96 million during the period. MAPCO to sell K5b wor th of shar es Myanma Agro-business Public Co (MAPCO) will sell K5 billion worth of shares over the counter by end-July, local media reported managing director Ye Min Aung of MAPCO as saying. Each Myanmar citizen can buy shares worth up to K1 billion at K10,800 per each, he said. MAPCO, which is expected to be listed when the stock market begins operations in Yangon next year, sold about one billion worth of shares last year. Chi na r emai ns top FDI contr i butor China continues to be the leading foreign investor in Myanmar with more than $14 billion of cumulative investment as of the end of June, according to the Di- rectorate of Investment and Company Administration (DICA). Foreign companies have so far invested more than $46.71 billion in 12 sectors, including oil and gas, manufacturing, mining, hotels and tourism, transport und IogIsLIcs, reuI esLuLe, IIvesLock und hsIerIes, ugrI- culture, construction and services. Energy sector has received the most foreign investment, about 41 percent of the total, DICA data shows. Thailand is the second largest foreign investor country. Myanmar Summary _.,.:..._~:...._ ATR72-600 ..e:.:.~:. .~~.:..~q._~:.~ ~...:...e:._.:~..~~~ . :e . _.. . _. .. _. .. ._ . ~ ..~ Farnborough ..._~: . _..~ ._.:~..~ .q..e._._..~_e ~~__......_~:. . q._ ._., .:~. ..:...._~: .. .~_e. ._~:. ~._ ._.: .._ _e. ._ . . ..._~: .. .._ ..e: .:.~ ~~ . . . ~~.~ .~.~. e.:..__e.~: ...:.._.:...: ~~ ...~ _~:_..__e.._. _.,.:.- ...~|...,.~_.: ~..q- ~,..:.q.~_ ~..' .._~......_~: ~~ . ~ q:. .,.~_~:. ~.~~ .:._e .q._. _.,.:...~|.~_...~~.: .~q~ ~,e.~:._e ..'.: .,. ~~~ . ~~ _~:.q_.. ...~~~.q ~ , .. _ . ~ q:. . , .. : _._ .. ~ . ._. ._e. ._~: . . q._ . ..:e:.~.~,q Master Sports e,..~,.q .~: ~q.e:....~..~:. ~....:..:.~ ..:._~..... .~,.~...._..._~: ~....:.~,_~._:,~ ~q:... :.._~:. _._~..~._:,.:.~ .e:_.:.._. _...._ _~:...~..,~ ~....:. ~~ .~:., .~:~q.e:. .,..q. .....:~.~~.._..._~:. .q._. July 24-30, 2014 Myanmar Business Today mmbiztoday.com 3 July 24-30, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 4 Myanmar Summary Myanmar Summary YCDC to Ban Street Vendors from September Htun Htun Minn T he Yangon City De- velopment Commit- tee (YCDC) has an- nounced that beginning in September street vendors will be banned in 33 town- ships that make up YCDCs territory. Currently, street vendors are allowed to setup stalls on the pavement between the hours of 3-9 pm. YCDC said street vendors and stalls are causing dis- ruptions to passing pedes- trians, contributing to traf- hc jums und IrresponsIbIe waste disposals, which in turn deteriorates hygiene in the surrounding area and blocks the sewage sys- tem. We are planning to ar- range a space for vendors to sell in the downtown area. We will clear them from the streets for the convenience of pedestri- uns, suId u senIor om cIuI from the YCDC markets division. The ban has been planned with good intentions; how- ever, it will hurt their live- lihoods and income, street vendors said. It is not easy to allocate selling spaces to all the street vendors in Yangon. If selling on the streets is completely banned, we will dehnILeIy sLruggIe Lo muke ends meet, a vendor who runs a stall on Anawrahta road, said. However, downtown res- idents say there are both advantages and disadvan- tages to having vendors on the street. They sell goods and foods with reasonable pric- es at convenient places, but they also disturb the pas- serby. Sometimes walking space is so blocked that only one person can pass through at a time, a resi- dent of downtown Yangon said. There has been a plan to open a night market for street vendors near Maha- bandoola Park in the past, but this has yet to be real- ised. Currently, there are over 70,000 street vendors, with over 300,000 de- pendent family members, making a living on the streets of Yangon, accord- ing to surveys. The high number of street vendors is partially attributed to the lack of job opportunities avail- able, leaving the poor with few options but to choose convenient roadside sell- ing of goods and foods as employment. There are also street vendors in other countries. Neighbouring Thailand is even famous for roadside and night markets, which are popular tourist at- tractions. But the vendors there are about health and hygiene and dont irre- sponsibly dispose of their waste. Here YCDC workers face the big task of clearing heaps of waste left by the vendors, said a city pro- ject planner. Starting in September, ~~, ... .~~:.. ._ q,~,_..~:._.,e, . ~ ~~ .q _. ,e ,, _. ,e ~ ....q: ...~ q ._ ... ......_.:.~ ..~... .q: .. . _. .~: ._ .e ~ ._~:. q,~,_..~:._. .:e:.q..~:.~~ ._~_: .._. .~ q ~. , ~ q, ~ , _. .~: ._ . .:e:.q..~: .~ . .. ..... .._ .:.~:. .,._ , ,:q. _ ,:q~ ....q: ... ...:...: ._ . _._ . .:. . :..:.q..~ . _. . e: ._~:. ~ . . .:. _e. ..' .,_.. .~~,.~.,q.... . .q :..:_. . ~. ~ .:. ._ .~.. . . , .. _. .._~: .q._.: . . ~ . _. ..:._e. . :..~ q ._e ....q:.._..~:._.e~ ._~:. .q._. ........._.~~ _. ~..:. .,q:~... ..... e ..:.~e.~.~ ... .:.....:.~ ~.~~._e. ~ ..~ .e: ...'.~ . :.q:.. .,~:~ ee q:.. :..e ''e q, ~ , _. .~: ._ . .:e:.q. .~: .~ ....:._:,, . ~_~. ~,.~q:q~..~ .._. e.~. ........._ .:.~ eeq:.q, .._...: .~: .. , ._ ..: q ~ .~ _e...:._. ,.~-~.~ ...~...~:..q:...:..q. ..,..:.~~~ ~.~~. . ~~ ..~ .q:~ . ~. . ~. q:_e...'.:..._e ... ......_~..~ .._. q,~,~._....:q~... ._ .~ ~ ~. ._ ..~: .,q:.:....e ~ . e .e . .| ... .~....q: .. ._. .~: .. q .:.~~ .,.q. ~.~~.~ ~ ,.....|~_~ .:~.,.''e q,~,_. ~.,: q:......'~ ....q: .. .~q._ ........._ ~..~ .._. e.~ ~..|........ ._ .:.~ .e:-. .., ._. .~ ~,.~~ _...~,.~_e. e . . ...q, . . . e ...: ._ . ~.~:~_.e:._...q . ....~ q ~. , ~ q, ~ , _. ~ .. ..._ ....q: ..~ q ._ ...._ ..| . . ,. ..: . .~: q .,_. . .. ~. ..:.~q ,. ~ ~:.~. ~. _ . .~ q ._ ..:..~..|. ...,..~: .,q._e .q._. . ~~:. :._ . .. ... ...._.~:q.|~e. ~.,. . . .. . :._ . ..... .... _....~ ._~: ,:._ q~e . ~. :. _ .q .._ .~ ~ ...:.~e. .,q. .q. ~,..:.q.~~._. , . ~ ~e .._ .~... ._. ~. ~ ... _ ~ . ' ' e _ . _ .. . ~ , . ._:q~..~ .._. ._~: ~~, ... .~ ~:.. .~~: ..... ..~ .e: .. . :... ..:.~ ....q: ..|~.._ ..:... . ._ ~_. .q:...~._. ~ .q.e . :.._ _e. ._ . vendors caught selling on the streets or pavements will face charges and see LIeIr goods conhscuLed, suId un om cIuI Irom YCDC. Ministry Unveils Final Draft of Advertisement Policies Aung Phyo M yanmars Infor- mation Ministry has unveiled the hnuI druIL oI udverLIse- ment policies for socially responsible media, and is inviting advice and sug- gestions from the public, according to a statement from the ministry. The advertisement poli- cies comprise 14 sectors, including politics, reli- gion, culture, education, tobacco and alcohol, ille- gal gambling and lottery, non-prohL orgunIsuLIons, children, private free- dom, medIcInes, hnuncIuI services, advertisement of products, property rights and environmental con- servation. The policies are aimed at promoting peoples trust in socially respon- sible media, reducing complaints against ad- vertisements in socially responsible media and disputes and encourag- ing a market- oriented economic system, said the statement. The statement called for respect for private free- dom and current laws. The rules for advertise- ment policies will take ef- fect from April 2015, the statement added. _.,.:._.,_~:..q.~,_~. _:,._ ...q.~q~:~,e ..:. . e:.:._e. ..q, ._~: _: . ~| ..:. ~~ ~ .,:~ . . . _~. .~ ~ _., . ~ _. . _._ . .:.. ~_~_..~.:.e~..' :.._~:. ~,_~._:, ~ _.,.~~q .q._. ._~:_:.~|..:.~ ~_ ~, ..|~_.. ..q. :.: .q. e .~.. ._:.q. ~q~ . ...q ~ _~ . ~q:..~ ..: . ~.:.. ~~.~_.~.e ..: ~e~._..:. ~... .e.:. ..~.~... ...~|..:. .._~.~,..:. .:. ~,.._.._~:_:_...:. ... ....:.. .:~ .~~,.~,.....q.~_e. ._. ~ _., .~ ~ . . ~. ~ .. . . ~_ . ....:.~ ....:.. ~ ,:q, ~ ~ ~ , .:. ._ .._~: _:. ~|..:.. q: ._ .. ..:.. : ~~ -_. .~ .~~.~~.__e.._ . B lo o m b e r g Rice dumplings (zongzi) are seen at a roadside stall in Chinatown of Yangon. U A u n g / X in h u a July 24-30, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 5 Myanmar Summary Myanmar Summary Air Mandalay to Buy Up to Ten Mitsubishi Regional Jets May Soe San Aye Myat A ir Mandalay has signed an aircraft purchase agree- ment with Mitsubishi Air- craft for an order of six MRJ90s with a purchase option for an additional four, the local private car- rier said. Deliveries of the Mit- T wo private banks in Myanmar Kan- bawza Bank and Cooperative Bank will raise their interest rates Ior suvIng und hxed de- posits starting August 1. The current interest rate of 8 percent for saving deposits will increase to 8.25 percent, while that Ior one-monLI hxed de- posit will rise from 8 per- cent to 9 percent. TIe ruLes Ior hxed de- posits of three, six and nine months will also rise by 0.75 percent, 0.5 per- cent and 0.25 percent re- spectively. However, the interest ruLe Ior hxed deposIL oI 1z months will remain un- changed at the previous rate of 10 percent. It is expected that all other private banks in the country will follow suit soon, state-run media an- nounced. subishi Regional Jet (MRJ), Japans next-gen- eration regional aircraft, are scheduled to start in 2018. In the meantime, the airline will be expanding ILs eeL wILI sIx Embruer Regional Jets (ERJ) from Brazil, it said in an an- nouncement at the start of the annual Farnborough International Air Show in Hampshire, England. Yangon-based Air Man- dalay, currently operates turboprop aircraft and is seeking to expand and enIunce ILs eeL`s cupu- bility through the intro- duction of regional jets, it said. We are dedicated to fa- cilitating transportation in Myanmar and enhanc- ing the travel experience of our loyal customers, said Air Mandalay CEO Gary J Villiard. Our plan is to expand our route structure in order to service our ex- panding customer base as the countrys air travel requirements continue to show record growth. This agreement comes as local carriers try to serve both the local popu- lation of and visitors to Myanmar, as the coun- try transitions to an in- ternational standard air transport structure. The addition of the MRJ wIII provIde benehLs Lo drive the airlines expect- ed growth in the region, Air Mandalay said. Villiard said the com- pany chose the MRJ for its advanced design char- acteristics, its promised customer support backed by the Mitsubishi parent company and the reliabil- ity and economy of the Pratt & Whitney Geared Turbofan Engine (GTF). By 2032, Mitsubishi Air- craft anticipates demand of about 1,000 airplanes in the expanding Asian regional jet market. The agreement is expected to enable Mitsubishi Air- craft to accelerate sales eorLs ucross LIe regIon. Thus far, 325 MRJ are on order but Air Manda- Iuy Is LIe hrsL AsIun uIr- line outside of Japan to select the aircraft. Founded in 1994, the airline currently serves 15 domestic destinations. Air Mandalay ~.,_e ., ..e: ~ . . ._ ~.~~.._e.._ ...q . ..e: ~e e q, ..: ~ _ .~. . ~ _.. . . _. . MRJ 90 ~. .~.:...e:._.:~.. ~e e q, ..:~ _ . _ . . .,:~ . .... .~ .| . . ~e e q, ._ . ~. ~. q ._ e . q._ . .. . q . e . ..e: .:.~:. .:._ ~~ ...~ .....:.._e._. . q._ . _. Air Mandalay ._ , .~ -..e: ~ . . ~ . q, ~~ ~ q:~ .. . Embraer Regional jet ~. . ~.:.._.:~ . ._e ._ . . . ~ .. . :.q, q ._ e ~ ., . Hampshire _.~ _.. . . ..: Farnborough . ~~:.. ._~: ._.. . ~ _., .~ ~q . q._ . .~ q ~. , ~ Air Mandalay ._ , .~ .q.. .:.~ ., ~:. . . .~. ..e: .:._e . . , ...: q ~ .~ q _.. ,.~-..e:~..~ ~ ..e: .:._e . . q, . . .,_.._e. ._ .AirMandalay - CEO Gary J Villiard ~ ~, .~: ~ q.. :q .e:~ ._ .~ ~~ ~ .q .. :..:.q.. . ~. ._..~: . q_ q e _... . . ~:.|. ..._~: .. .. .q. . :..:. ~._. . . _. .:..: ~:._~: . ..e: .. .~ . . ~e e . ._e~ . ~:.|''e ._.:.._._. ...q.. e: .. .:.._ Air Mandalay ..._~: .. .-~~ ..~.~ . .:..:~ . .... . . ._ e ._ . Air Mandalay ~ ._~_:. ._ . An Air Mandalay aircraft at Thandwe Airport in Rakhine state. S h e r p a
H o s s a in y Private Banks in Myanmar to Raise Interest Rate . . ~~ . . . _ e. ._ CB ~. ~..:~~~ ._ , .~ ~ ~ .:.q:~ . ..: .._ . ..: .. .:. ~ ...~.._ ~~..:..:. _.~. ~ q~.,. .~_ ~._.....:.._e .q._. .~ q ~ . . . ~...~. .~ q ..:~~ .. , .. : q. q:. . , . _e. _. . e .~~ .. , .~:. ... q:..,.. ~._.....:. ._ _e. _. ..:q ...~. . ~. . ~~ .. , .e: q . q:. . , .. ~.q:..,.. ~._..:.._ _e.._. _. .:q ...~. . . .. ._.:~.. ~.....:._.. .:.~~~ ._ ... q:..,. ._... q:. .,.. ._... q:..,. ~....~._.....:..__e. ._~:. .q._. . ..: ~. . . ~~ ~ .:q. ..~. . .:. ... ~. ..: ~~q:. . , .~~ .. ,.~ . ._.: .. ._.e~._~:. .q._. July 24-30, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 6 Myanmar Summary Government Inspects Manufacturing Businesses for Licences May Soe San A uthorities are in- specting manufac- turing businesses to uncover unregistered companies as a spread of unregistered small and medium businesses (SME) throughout Myanmar are thought to be undercutting local industrial production. The Ministry of Indus- trys Industrial Supervi- sion units director general U Thein Swe said private industrial businesses are wrong to think registering companies is a time con- suming process without commercIuI benehLs. There are advantages to being registered such as being eligible for loans and able to employ for- eigners. We also share technologies with regis- tered businesses, he said. SMEs are currently regulated by Myanmars 1990 private industrial law, while an SME Bill is being discussed at the parliament. U Thein Swe said the governmenL cun hne busI- nesses found to be oper- ating without a licence under these regulations. About 50 to 60 unregis- tered companies are now getting registered every month, he added. The law invites busi- nesses to register. If they dont register we cannot accurately calculate the GDP of the country, he said. GDP (Gross Domes- tic Product) is the mar- keL vuIue oI uII omcIuIIy recognIsed hnuI goods and services produced in a country. The statistic plays a key role the gov- ernments monitoring of economic progress and the implementation of de- velopment reforms. But the governments call for businesses to reg- ister isnt solely based on their own administrative interests. U Thein Swe said un- registered SMEs face increased land owner- ship and fraud disputes, which disadvantage local commercial production throughout the domestic sector. Registering businesses allows safeguard meas- ures to be put in place, protecting trade and manufacturing licences, and protects weaker in- dustrial sectors from ex- cess foreign investment entering the market, said a director of Shwe Thun- dayi cosmetic company. By making businesses register, the government is attempting to unify indus- LrIuI eorLs und Increuse national productivity. The Ministry of Industry was restructured in December 2011 by integrating Minis- try of Industry no.1 and 2. The ministry is also en- gaging in founding new factories and training facilities to improve or enable the production of transport vehicles, con- struction and agricultural machineries, and rubber- based and high tech prod- ucLs, omcIuIs suId. _ ., .:. -~....:.. ~.~ .:.. . ~.~ . . . , . .:.~.,_e .~.~._.... .:. q.,._e.._~:. .~. ~,_~._:,.~.~:~q .~. _~ ._~. .q.. .. ....q. .. . _:,. .q._. . . ~.~ . . . , ..~ ~:. ,_ .. ~ ~ . ~ . ~ q. :~ ~..,.~e ~.,_~,_~: ~e._...~: ~.... .. . _~ ..~ . . .. . ~:e: ~._._q GDP ~ ~~. .q .. ~. ._:~:.,_ .~: ._..|~e. ~.|._~: ~. q :.e _...~: . ~ . ~ . . ...., ~:''e .~ . ~, _~ ._:, Director of Industrial Supervision and Inspection .,_~:..q. .. ..,...~ ._.:._. .~,.:.. .~.~~:.,_. _. .._~: , ..~ , .:.. _:, .q:~, ...:.. ~... .. .... .:...: q ~ _. . q, ~ , ~ .~~ . . . , .~.. . ~ . ~_..~ ~... .~, ~ '~ ., .~.~....,q ._~:. .q._. ~. ...~e ~ ..':.~e . SME .~ . .... q~e .. _.:..:.., :.. q~e . ,_ . ._:._ ...~.... q ~ ~~ ~ . ~ . ~ . .~ q .:~e ..~ q .~: .~ , ~ ~:q ~e. ~~ ..., ~q:..~e''e .,_~:..q.. . ..,...~ ._.:._. ~....:.. ~.~ .:..~ . ~ , .:.. ~ . .~ _. .._~: ._ .e: :.q. .. _ ..,:. :. . .:.. . . . _ ..,:. :. ~._ . . ._ . _..,:.:._e. ..'.|~._eq .q, ~.~ ~. .:. q.._~:. ._~: ,.~ ~.,_e ~ .. ... ...q:~ ._.e:~._..|~ ~..:~ ~~ .:. .~ .. _ ..:.~ ~. ~ :.......,._~:. . q._ . .~ . ~, _~._:,~.,_e .. . ,.~,~e:..:.~:e: ~. .. . ..:~ . . .q.. . , . ..e:e.q:.~.... .~e ~ .:. ..: .~: e: ~. ~ ~...:. ~:.:. .... .:~ ....~ .:. .q~ .~ ..~ .:. ~._..~~qe:.:. Transformer .:. .,.q: _._ . . .~ . .. . .. .. _ .. :. .ee:...~.._.~.... .q::.~...._. .:.~ .._.. ..~.,_. ._:_. .:...: ~ ~ , .:. ~ . . . q, ~~ ~ .~ , ~.. .:. ~_.:_.. .~ . ~. .~ ...:..:...'~.:.q.~ ~ ~ .. ~ . _~:....._ .~ . . ~, . .~ : . . :. ~_ .:_..~~ ~.~ ..: q~.~q ._. ~~~ ... .~: q~. ._ ~.~ ~ . ~.~ .~ .~,_~._:,~~ .~ . ~, _~._: ,~_e._., ._ _..e._.. _. ..~ q ~. , ~ ~~. ~ :'~ ~ _ ., ._ . . ~ .~. ..,.....:q._ SME.q:....:.~.~: ~~ . .......,._e.._~:. .q._. A woman works at a manufacturing factory in an industrial zone in Yangon. O liv e r
S lo w / M B T July 24-30, 2014 Myanmar Business Today mmbiztoday.com 7 Myanmar Summary Myanmar Summary LOCAL BIZ Myanma Railways to Invite Tender to Build Dry Ports May Soe San S tate-run Myanma Railways will invite local and interna- tional businesses in Au- gust for an open tender to construct dry ports for the development of the local logistics sector. The project is expected Lo be hnIsIed In LIe cur- renL zo1q-1 hscuI yeur, which will ensure access to dry ports and contain- erisation for rail trans- port, boosting connectiv- ity for industries engaged in import-export. We plan to invite ten- ders from local and in- ternational business in August with construction set to start in September, told U Aung Myo Myint, deputy general manager of cargo for Myanma Rail- ways. Construction for dry ports are expected to be completed by May 2015, which will be followed by a planned upgrade to the railroad infrastructure in June of next year that will help accommodate container trains that run from inland depots to sea- ports, as well as other in- dustrial zones. The short-term schemes aim to develop dry ports in Yangon and Mandalay, Myanmars major com- mercial cities. The project is drafted to include six sites that in- clude Kwae Ma, Ywarth- argyi, Tanyingone, Myo- haung, Myitnge, Palate stations. The potential project sites will be as- sessed before implemen- tation with only two sites so Iur beIng conhrmed, Ywarthargyi in Yangon and Myitnge in Mandalay. Labour Requirements Growing Throughout Myanmar Phyo Thu E xperts have re- leased a report conhrmIng Myun- mar is facing a shortage of trained and capable labour in a range of in- dustrial sectors that could threaten the nations de- velopment prospects. The countrys demand for skilled workers is ex- pected to reach a level equal to almost half the population by 2015. Myanmar Arts and Sci- ence Academics Asso- ciation Vice President Dr Thet Lwin and Yangon University of Economics Vice Rector Dr Tun Aung prepared the report fore- casting Myanmars future employment needs. The document estimat- ed Myanmar will need 32 million more workers in job areas including agri- culture, forestry, energy, mining, industry, electri- cal, construction, social, management and trading by next year. Yangon University of Economics Rector Dr Tin Win said the report used mathematical calcula- tions to determine where the skilled worker short- ages were most prominent throughout Myanmar. If Myanmar is unable to increase education and training to help citizens improve their employ- ability then the countrys labour needs could reach over 34.6 million by 2020, while demand for skilled workers stood at 29.7 mil- lion people in 2010, ac- cording to the report. The report said the countrys agriculture sec- tor will have the highest labour requirement while the industrial and trad- ing sectors will also have employment demands of over 3 million labourers. Dr Thet Lwin and Dr Tun Aung, the reports authors, said the agricul- ture, industrial engineer- ing and information and media industries should be prioritised for local employment expansion. Last month the IMF forecast it expects Myan- mars economic growth to rise to a rate of 8.5 per- _ ., .: . .. :..q.- .:._ ~~ ...~~. .~...q. ..._..q. ...~: ...~ .~ ~ . .~ . .. .. . . , . ..:~...q. ...q. .. ~ . .. .q.. ~ , . e . ~_.:. ..:. . , .~_. :.~. ~ ...:..~..~.: ... .q-~~~.,_e.._ .. .:. , ... ~' .,.., .~..__e.._~:. ...:..q. . q:~. _. ._:~_.:~. . ~...:~ .|q:.._. ~..|~_~.~ ...:. .~..~.e:_..~ .~.. .q...~ ~_...~_e. .. .:..~..:.__e.._~:..| q_.. .~.~_.~,.e. ~_~~ .~..~~~e ~_ . . .~_ e. . .., ..~ : . ~. .__e.._. e .. ... . ~ .:~. .~ _., .:. ~ ~ :. . . ._:q .:.~e .~e~_ ..|~~: .~ . . q, ~ , . .. :..q. ~~.. .~e.|..:~.. ..|~ ~: , ..~: ~ ~., . , . _..:._~_.._e.._. _._~.~,._...:.q. ~_e _e .~ .~~ .q.~~ ~ ~_..:~.:.._ ~,.~. . . _ ~ ..:.~ .~ ~.~: ~_.e:q, _.~.~~. __._ ~ . _._ .. . , .q .:.~ ~ .| ..'e ._ _ e. ._~: . _.,.:..q:.. .q._. _.,.:.~.,_e ~,._ ...:.q.~_.: ~,.~. ...:. ..e_e.~.~~.:.. q,. ~,..~:.:. .ee q:~ q:._e .ee_.. ..,.~.~~.q.~~~ ,. ..~,.~ ~~,~~ ... ~~. _.....~: ..:q~ .:..__e.._. ~~ ....: ..,..:. ~:.. .~ _. .. ..~: ..: q ~ . :.._ _e. _. . ~ , .~~ ._ e.~,.~....:..~.. _ ._ ~ . q :. .. . .:. ~ ~ ._.~_...~~.q :. , ~ , ..~ :.:.~ . ..: .e e....q,q_qe._. cent by March 2015. The report suggests increased shortages in skilled la- bour could stall the coun- trys economic progress. Myanmar is facing skills shortages in many sectors central to the countrys infrastructure develop- ment. The civil adminis- tration and service sectors are expected to require 2 million further skilled workers by next year. Estimates also forecast employment demands for the tourism industry to reach 930,000 workers in 2015. Myanmars tourism industry is expected to contribute over $1 billion in 2014, increased from $926 million in 2013 and $534 million in 2012. However, a lack of trained and capable la- bour could undercut fur- ther revenue increases in the tourism industry. The experts said skill shortages in Myanmars foreign language and medical and healthcare services were also likely to become prominent. A worker stands on a bridge in Yangon. U A u n g / X in h u a July 24-30, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 8 Myanmar Summary Banking Conference Focuses on Local Banks HR, Capacity Dearth Aundrea Montao T he 2 nd annual My- anmar Banking and Business Develop- ment Conference, hosted by Sphere Conferences and Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry, was held on July 15 17 in Yangon at the Sule Shangri-La Ho- tel. Day one of the confer- ence focused on the stra- tegic aspects and the fu- ture of the banking and hnunce secLor In Myun- mar as it moves towards increased global integra- tion, while day two em- phasised the use of tech- nology. Dr Aung Thura, CEO of Thura Swiss, moderated a panel discussing the im- pact of impending foreign bank licences. During the panel discussion, Dr Sein Maung, chairman of First Private Bank, shared his surprise that the govern- ment was so quickly will- ing to allow foreign banks to operate in Myanmar saying that while the gov- ernment has good inten- tions, the decision is a bit premature. Why rush? The legal base is not ready yet. Ad- ditionally, there is a big gap between capitalisa- tion, skills and technol- ogy. We are in the process of building a house, in the process of building insti- tutions. We should not rush this process. My advice to move step-by-step in a prag- matic fashion, Dr Sein Maung told the panel. Kittiya Todhanakasem, a senior executive vice president and managing director at Krung Thai Bank, acknowledged Dr Sein Maungs concerns and added that in an over- seas market the market leader must be domestic. She further emphasised that Thai banks will focus on hnuncIng und promoL- ing trade of Thai corpo- rations, which is a likely scenario for any foreign bank granted one of the coveted foreign banking licences. Kim Chawsu Gyi, depu- ty managing director and head of transformation at KBZ Bank, added that foreign banks are vital to hnuncIng Iuge InIrusLruc- ture projects, which local banks cannot currently accommodate with their limited capitalisation. Also discussed at the conference is the reality of the immense challeng- es Myunmur`s hnuncIuI system faces in terms of the lack of skilled work- ers and technological im- provements. Kim Chawsu Gyi, who is responsible for the de- velopment of human re- source capacity for Myan- mars largest bank KBZ, said, We must recruit individuals with the right skills and talent, but it is equally important for these individuals to learn soft skills such as team- work, how to provide ex- cellent customer service, and how to work in a pro- IessIonuI omce envIron- ment. Dr Sein Maung acknowl- edged the critical need to upgrade the technology of Myanmars banks. How- ever, upgrading technol- ogy is not as easy of a task as many might think. Upgrading technol- ogy is very expensive. On top of that, lots of ven- dors come to sell software without the proper sales support and local support sLu, Dr SeIn Muung said. He conhrmed LIe need for intensive and quick action in addressing hu- mun resources dehcIen- cies, suggesting advance- ments in basic education, unIversILy und cerLIhcuLe courses should be empha- sised. U Set Aung, deputy gov- ernor of the Central Bank, spoke about the countrys commercial and business climate and touted Myan- mars potential for busi- ness development and trade saying, The Minis- try of Commerce has fo- cused on four main areas that include trade promo- tion, facilitation, liberali- sation, and education. As a result, Myanmars Lrude voIume sIgnIhcunLIy increased during the last three years. According to data pre- sented at the conference, Myanmars trade volume has increased from $15.27 bIIIIon In LIe zo1o-11 hs- cal year, to an expected $24.87 million in the zo1-1q hscuI yeur. U Set Aung said Myan- mars current prospects for growth lie in the coun- trys many untapped natural and human re- sources, its strategic loca- tion and ability to become a major regional trad- ing hub, and increasing south-south and global trading opportunities. Attendees at a session of the Myanmar Bankign and Business Develelopment Conference. Microeconomic Objectives Surpass Target; Trude ecit $.oS Billion in o1-1q H May Soe San M yanmar re- corded a trade dehcIL oI Kz.o8 trillion ($2.08 billion) in the second half of 2013- 1q hscuI yeur, Duw e e Thein, deputy minister for national planning and economic development, told a recent parliament session. Exports earned K5.93 trillion ($5.93 billion) and import volume reached K8.01 trillion ($8.01 bil- lion) during this period, she said while presenting a report on National Eco- nomic Plan, released by the Ministry of National Planning and Economic Development. The report outlined the governments progress in the second half of the 2013-14FY. uIhIImenL oI mIcro- economic objectives sur- passed the target and reached 125 percent of the planned goals, an improvement in perfor- mance of 7.5 percent com- pared to the same period last year, the report said. According to the report, agriculture accounted for 31.9 percent of the total economy, compared with the previous estimation of 29.9 percent. The in- dustrial sector accounted for 32.7 percent, which is lower than the sectors estimation of 33.8 per- cent. The service sector accounted for 35.4 per- cent which was also lower that its estimated 36.3 percent. The period coincided with the harvest season, which produced over K9.17 trillion ($9.17 bil- lion) in the agriculture sector. A total of 35 local enter- prises were approved un- der the Myanmar Nation- al Investment Law, which amounted to an invest- ment volume of almost K1 trillion ($1 billion), while 68 foreign companies were approved under the 2012 Foreign Investment Law accounting for K2.37 trillion ($2.37 billion) in investment, according to the report. TIe hnuncIuI servIces sector during the second IuII oI LIe zo1-1q hscuI year saw the expanding of bank branches, which increased by 210 to 695, while 470 private money exchange counters have been approved during the period. The report said 82.5 per- cent of the planned objec- tives have been complet- ed in the energy sector, while 99.5 percent were completed in the mining and mineral sector and 95 percent in electric sector during the period. The government has increased electricity sup- ply in many states and regions thus reducing the private usage of diesel to run generators for house- hold or commercial pur- poses. 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July 24-30, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 9 Myanmar Summary Scotch Whisky Gets Special Legal Protection in Myanmar Phyo Thu S cotch Whisky has been granted better protection by My- anmar authorities as a collective trademark in a move that is expected to help protect Scotlands national drink against fakes in the growing Southeast Asian market. Scotch Whisky exports to Myanmar jumped 65 percent to 2 million last year from 888,734 in 2012, according to the Scotch Whisky Associa- tion. The move will provide added protection to both consumers and the indus- try, the association said. Alan Park, Scotch Whis- ky Association legal ad- viser, said: This will al- low us to protect Scotch Whisky against products illegally being sold or pussed o us ScoLcI. Products suspected of misleading consum- ers and damaging the le- gitimate trade are already under investigation and may become the subject of legal action using the protection now given to Scotch Whisky in Burma. The changes mirror those introduced in Aus- tralia earlier this year, a country which was said to have a serious problem with fakes. The trademark gives similar protection to Scotch in Burma already enjoyed by products such as Parma ham and Cham- pagne which are subject to a geographic indicator (GI) - u proLecLIon oered Lo a range of geographically unique products. British Ambassador to Myanmar Andrew Pat- rick said: Scotch Whisky is recognised worldwide as a distinctive and high quality British product and I am delighted that the Burmese authorities have taken steps to recog- nise and protect this. A robust legal frame- work is of great impor- tance to foreign investors in any market and the British Embassy is sup- portive of the Burmese GovernmenL`s eorLs Lo develop this. In 2012, Chelsea FC agreed a two-year spon- sorship deal with local whisky Grand Royal Myanmars best-selling brand which boasts an unnamed Scottish master blender on its label, but, in accordance with Scotch whisky rules, does not claim to be Scotch. Earlier this month, a German scientist living in Scotland announced a new technique to tackle counterfeit Scotch whisky by determining whether the water used to make it comes from Scotland. TIe SpIrIL DrInks VerIh- cation Scheme, launched earlier this year, ensures that every part of the Scotch whisky supply chain is mapped by the industry, registered with the UK government and inspected to ensure it complies fully with all the rules on the production of Scotch. AII hrms InvoIved In D a v id
G r a y / R e u t e r s the production of Scotch whisky must register with Her Majestys Revenue & Customs by listing their sites within and out- side Scotland, including distilleries, maturation facilities, blending and bottling plants. Foreign bottlers will also be sub- ject to controls. In addition, the spirit is already protected through the European Union GI scheme, meaning it can only be produced in Scot- land according to UK rules. Scotch Whisky . . , .~ . . ~:. ~q:.~..~.~~.. ~_e. ._..~_.._e _.,.: ~:~:. .:.~ ~~:~~ e ~ ._. .... ~ _. ....~ ~ ~~ . ~~_....q.. ~:~e... .._e e.:._~._. Scotch Whisky . _., .:. . ~...: ~~ ...~ ..| ,,, ~, e .q q:. _. .. ._ . . ~ ..| . . ., .. ~ .~~ .:. ._ . ~~ .| ..:q~.~~ .:.....:. . . . , .~_. . . .. .~:. ~~:~~e....__e.._. _., .:. ~ Scotch Whisky ~~~ ~~:~~e.~.~ ..._. .._~: .:.. .. .:.~:. ..._._ ..e~ ~q:. ~~.q:.~~e~:. .~ ..._ ~,.._..:.~ .... ......~q_.. ~q:.... ~q~.q.e . :.._ _e. ._~: . Scotch Whisky ~ . . -... ~_~ ... Alan Park ~ . ._. ._ ._ ...~ ~ ~ .. . _ .:.q .. ._.. . . .:.~~ ~ .~:~...: ...~._.. . .: q q, . :~.q._~ .._~: . . _-~,.,.~ _., .:~..q- ..: q ~ .~ .:.~ . . ....._ _ e. ._ ~: . _ - ~ , . ~.~ Andrew Patrick ~ .._. e..~..:..~ ..~: ~.,q :.,._:q~..~ . .. :.._ .q. :..~: ~., ~ .~ ~~ .:.~ .e: ~ .._ ,_.._:...~q.._. July 24-30, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 10 Myanmar Summary Myanmar Summary Myanmars Legal Framework and Immigration Stefanie Siegfried I n this weeks case study, our client, XYZ B.V., asked us if it is possible to send an executive employee to Yangon to conduct mar- ket research before their new company has been approved and registered for operation. In our case study last week, we al- ready advised them to set up a MIC company. MIC approval will take approximately 3 months; however, the company wants to start research ac- tivities right away. In this particular case we do not recommend sendIng sLu or an executive research- er to Yangon on a tourist visit visa. A tourist visa is only val- id for a single entry, which is granted for a period of 28 days, and does not al- low the holder to engage in any sort of commer- cial activities in Myan- mar. Because leasing an apartment is prohibited to individuals holding a LourIsL vIsu, sLu Irom XYZ B.V. is only allowed to stay at a hotel that has been pre-approved by the Ministry of Tourism. TIereIore, sLu wIsIIng Lo conduct market research should enter Myanmar with a valid business visa, issued upon arrival at ei- ther Yangon or Mandalay International Airports or by a Myanmar consulate Strohal Legal Group presents a weekly case study aiming to provide an overview and updates on the legal framework in Myanmar abroad. To obtain a busi- ness vIsu, LIe sLu mem- ber needs an invitation letter from a Myanmar company as well as a copy oI LIe compuny`s omcIuI regIsLruLIon cerLIhcuLe. But, is it possible to ob- LuIn LIese omcIuI docu- ments? Yes. XYZ B.V. wants to prompLIy begIn heId re- search especially given their competitors are also attempting to enter the market. Therefore, it is vital to send an executive employee immediately to Myanmar with a valid business visa. In this case, one of our clients, a 100 percent Myanmar com- pany, is ready to assist by issuing the required documents for a small fee. However, it is important for the business activ- ILy Lo sLund hrm on IeguI ground. Our Myanmar client company is also ubIe Lo omcIuIIy empIoy XYZ B.V.s market re- seurcI sLu und puy LIeIr salaries after reimburse- ment. Personnel leasing and recruitment services are legal in Myanmar and also provide full payroll services and employ- ment-related tax advice. Given this situation, we advised XYZ B.V. to send deLuIIs ubouL LIeIr sLu to the local company so IL cun Issue omcIuI vIsu documents that enable its employees to obtain their business visa, make ar- rangements for employ- ment, payment of salaries and other legal require- ments. During this pro- cess, LIe IoreIgn sLu wIII remain under the control and supervision of XYZ B.V. Later, after MIC has granted XYZ B.V. its com- pany registration, it can apply for a work permit at the Directorate of Labour under the Ministry of La- bour, and a stay permit and visa to the Immigra- tion and National Regis- tration Department from the Ministry of Immi- gration and Population. Once these permits are approved, XYZ B.V. can issue invitation letters and other required docu- ments needed for their sLu Lo obLuIn u busIness visa. In the next case study we will advise the XYZ B.V. about renting real estate. Strohal Legal Group (SLG), founded by Dr Theodor Strohal in 1979, is c lcu jrm ogerin highly personalized ser- vices specializing in in- ternational and cross border business. SLG enjoys a well-established reputation across Eu- rope, Southeast Asia and the Middle East. In Myanmar, SLG provides services under the name U Min Sein & Strohal As- sociates Law Firm. The views and opinions expressed here are the authors own and dont necesscril reject M- anmar Business Todays editorial opinion. XYZ B.V. ~ . .,_, .~ ~ . ~ ~~ ~ . _..~ . . ~ . ~ .~.... ~. ..: ~q:q ~. .e:~ ~:. q, ~ , . . ~ _ ...~ ~ . .~.,. . q, _e. ...:.e ~,.~~:. ... .:._ . . ..: q ~ . ..: ._ . .q .. :.-_ ._ - ~:_e ..:q, ~, .~ ~~_~ _.. ~ ._. .q..:.-~:.: ~._~. .: ~.q_.. q~.:q~: ~ ..: . . : _., .:. ~~ . ~ . .. :..q.. . q :.. .:. _.. . ...q..:._~:_e.._. ._~: ...~ ~ . .~., _...._.~.,_e ...:..q. - ~:_e ~ .:q._ _e. _. . q, ~ , ... . . .e ~ .. ...... . . .q:~ q . , . .e ~ _._ .q _.,.:.~:..~,,.~ ...:. .q.- ~:qe . ._ . . .. :..q. - ~:~~ ~ _., .:~ . ~ ~. . . e ~ ..'.:. ~ . ~ - ~q:. ~ . ~ . ~ .~ ... .:q ~ .~.~.q: .:q~.:~.. .:.~ ~, .~ _e_ ._ ..... .|._ .~, .~ . . ~ .~ :. ..: _.,.:~.~~..~ ~. ._~.. ~,_ .e _e .:q ~ .:~. ..:. . . .... _. . XYZ B.V. . ...~ ~ . .~.,~, . . .:.~:. ~...,~._ ~.:. _.,...._..|~ ..:...q, ._. .......|._. .q: ~ XYZ B.V. ~,...:.- . . q :.. . : .... ~_ _e. q, ~.q._~..|._. _..~:._e XYZ B.V. . .:.q:~._ ~,...:.- ~.~ ~.~ .:.~ . ..._. ._e _., .:~ . ~ . , .~ ~~ ~ .:q~.:~...:.~..._.. ~...,~._... ..:... _...:.~ ..:q~..__e. ._. .,:~ XYZ B.V. ~., _e MIC . _..~ q. ~. . ..:. , _ ~:.. .. ._:,~ . . , ..|.. ..:~ :._. ~, . _~ ._~. .q.. ~. ..:.. ~ . ~ .. ._:,~ ., . .|.. ..:~ :...__e.._. KBZ Bank to Launch Online Banking Services Aung Phyo M yanmars larg- est private bank, Kanbawza Bank, will launch online and mobile banking services soon, the bank said. US-based information security company, RSA, will provide protection to its customers from online fraud and cyber threats, it said. RSA is the security division of EMC, which is an American multination- al corporation. The bank started with an initial capital of K477 mil- lion ( about $500,000) in 1999 and has expanded its capital to K113 billion ($117 million) in 2014, according to the banks hnuncIuI sLuLemenL. Early this year, another private bank, the Coop- eratives Bank (CB), has introduced mobile bank- ing system services in the country on a trial basis. There are more than 20 private banks and three state-owned banks in My- anmar. The Central Bank of Myanmar recently an- nounced that it would grant foreign banks to op- erate banking business in the country by September und uL IeusL hve Lo 1o Ior- eign banks will be given permission. _., .:. -~_~ .. .. . ~ ~ _e. ._ ~.. :~~ ._ ._~:.~. ,~~. 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H o s s a in y July 24-30, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 11 Rubber Farmers Seek Govt Help to Wurd oH Iulling Prices Htun Htun Minn M yanmars rubber farmers have re- quested support from the government af- ter compounding falls in the price of rubber have seen many struggling to support themselves. The sharp drop of rub- ber prices, a cash crop grown in almost all of Myanmars regions and sLuLes, In LIe zo1-1q hs- cal year, drove almost a million farmers and workers at rubber planta- LIons InLo hnuncIuI Iurd- ship, Daw Mi Myint Than, a member of the parlia- ment, said. She said neighbour- ing countries had often helped struggling rubber growers in similar condi- tions, requesting the gov- ernment to provide direct support to farmers and guarantee a minimum price for the rubber they produce. However, deputy min- ister for agriculture and irrigation, U Ohn Than, said the government was unable to provide loans or set minimum prices for rubber due to scarcity of funds. The price of rubber changes daily, depending on demand from the glob- al market and large users of raw rubber. Thailands rubber exports, however, receive a larger price per tonne, $2,000, whereas Myanmars rubber ex- ports only receive $1,500 per tonne, due to lower quality. U Ohn Than said My- anmars rubber exports should therefore improve their production quality if they hope to improve the price they receive. Factors including slow- ing global economic growLI, IIngerIng eecLs of Europes debt crisis und IrequenL ucLuuLIons of global oil prices often as a result of internal con- IcLs - ure seen us IurgeIy responsible for drops in rubber prices. Declines in vehicle pro- duction in China, one of the worlds largest rubber consuming countries, and large expansions in their rubber production and reserves has seen a fall in rubber imports. Myanmar has also seen a total expansion of 1.5 million acres in rubber plantations in almost eve- ry state and region except Kayah, Chin and Magwe, with production increas- ing 177,125 tonnes in zo1-1q hscuI yeur. Mon state produced 10,000 tonnes of rubber in 2013- 14FY in 48,000 acres. Myanmar Summary .q: :...~. .. ._~: _., .:. q q::_. . . , . .:.~..~.,. ~..,. ., ._ ~.~~._~.~.,q _..._~: ~..q. ~~~_ ...q, e. ~ ...,..:.~:~ . ~ .~: _._ . . ~ .~: , ~._.~.~.~ .~:... ._. _ .,.:.~ .q::.~.. _..~ .,_._,e ~q_._ ,e q.._._,e .._._,e ~. _._,e . ..~ ...._~. -q:~~~...._~. q,~, ~ ...._ ~ . ~,. :q ~ . ..._~.. ~_.:.....:.~ ._. .:..:..:q~.,._. e ..q: :. . , ..:.~ . . ~ .,. ~. ., .., .: ~~,~, ~ .q::....,. .:. ~..~,~...._~: ~.~~..:.q..,q._. , .~.~ ~. .:.~ ~. .q. ~_._eq....q, .~.~:. ~. . .~: .. . _. ._e. ._ . ~..,.....:.~ e. ~.~ ~..q. ~:~,e._eq. ._~ .~qq._e . .~ : .. q_. ._e. ._~: . .q: : .. .:..:.~ e .:..~: .. . . . ~ .~: ~ e . : . . e ..'. _ . ., .~ ._ .:._ . .~:..q:~ .q::.~.. ..:.~ ..~:. ~.:~ ~. .:....q, . .q: :... . , . ~_ _ . .~: ~. .q. ~, . . .....~ . ~ ...q, _e. ._ . .q: :..|~ .. .. , .._ .q: :~ , _ ~. .~. ~. .. ..:. .:.- ~e . ~:.. ~. :.q: :.. .~ ~ ~..' . ~_ ._ ~: ., . ._ .: .. .._. .q: :~ ~e:._ ._ ,e .._._,e. ..~.~.... _~.~.~. ~,~...._~. . _._,e.:.~ ~~,~, . . . ~ .q: :. ~ -~ ~ ... ., .., ~ .~~ . ~ . .. ._ . B lo o m b e r g July 24-30, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 12 Myanmar Summary Myanmar Summary UN to Help Myanmar Prepare for A Warming Climate A boy Iooks at Hooded eIds near his destroyed home after CycIone Nargis hit the Irrawaddy deIta. A d a m
D e a n / R e u t e r s Megan Rowling U N agencies have signed an agree- ment with Myan- mars government to help the Southeast Asian na- tion prepare for climate change impacts, including droughts, cyclones and usI oods. The United Nations En- vironment Programme (UNEP) and the United Nations Human Settle- ments Programme (UN- Habitat) will support Myanmar to integrate climate change considera- tions into policies, and to develop a national strate- gy to prepare for a warm- ing climate. The impacts of climate change are here and now in the present, and are likely to become more se- vere in the future, said Yoshinobu Fukasawa, UN-Habitats regional di- recLor Ior AsIu-PucIhc. These impacts threaten both the progress towards the Millennium Develop- ment Goals Myanmar has made in the last few years and also the rapid eco- nomic growth the country is currently experienc- ing. In May 2008, for exam- ple, Cyclone Nargis swept across Myanmar, trigger- ing a huge sea surge and killing nearly 140,000 people. It destroyed vil- Iuges und puddy heIds, se- rIousIy uecLIng up Lo z.q million people in Yangon and the Irrawaddy Delta. Scientists expect more in- tense storms like this, as the planet warms. The four-year pro- gramme will be led by the Ministry of Environmen- tal Conservation and For- estry and implemented by the two UN agencies. The European Union has pro- vided 4 million ($5.45 million) in funding as part of a wider global ini- tiative. The momentum of re- form and the possibility for rapid growth means that there is a unique opportunity here to en- courage a low-carbon development model and ensure climate change adaptation is well-main- streamed, the delegation of the European Union to Myanmar said in a joint statement on the inking of the agreement in the capital Nay Pyi Taw. It is crucial that this growth and development the country is striving for is not undermined and compromised. The programme aims to raise awareness among government, civil soci- ety, researchers and the private sector about the need to address climate change, to coordinate grassroots planning for climate change, and to pilot activities that will build resilience in coastal and delta regions. At the signing ceremony, Win Tun, Myanmars min- ister for environmental conservation and forestry, said: Climate change is one of the most challeng- ing issues of our age and there (is) no time to delay LIe hgIL uguInsL IL. Thomson Reuters Foun- dation ~....~..:.._ _.,.:..~.q.~:~:q ..:.-q:.~._.:... . q:~~ ..~ .q:~ . .:. _e.._ ....|.qq:._e.q. .:. .~.,..,~.. ,~ ~q~ .q_ ~ .._ ~ . q. . :. ~~~ _~~_....:. _....q, ..:~_.~ .~.~.q...._~:. .q ._. ~ ... .~ . . . . _ e. ._ UNEP . 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Japans KDDI, Sumitomo Corp Strike Myanmar Telecoms Deal To invest $2 billion Wai Linn Kyaw K DDI and Sumito- mo Corp will invest in telecoms infra- structure and jointly oper- ate mobile and broadband services with Myanmar Posts and Telecommuni- cuLIons (MPT), LIe hrms announced. No.2 Japanese wire- less carrier KDDI and trading house Sumitomo said last week that they have reached an agree- ment with the state-run MPT to jointly undertake telecommunications op- erations in the Southeast Asian country. The joint operations will provide Japanese- quality services of the highest level in the world In mobIIe und hxed IIne communication services through upgrading of the telecommunications in- IrusLrucLure, LIe hrms said. The operations will fo- cus on customer services in call centres and shops to improve customer satisfaction, as well as contribute to the devel- opment of Myanmars economy and industry and the enhancement of Myanmars citizens standard of living, KDDI and Sumitomo said. Myanmar is experienc- ing a rapid move towards democracy and the market In mobIIe pIones und hxed line communications is expected to grow dramati- cally in the future, said Takashi Tanaka, president of KDDI Corp. Taking advantage of the wealth of experience and knowledge that we have built up both inside and outside Japan through our mobile phone operations in Mongolia, MVNO busi- ness in the US and other operations, KDDI will provide the same level of Japanese-quality services to Myanmar and contrib- ute to the countrys growth and development. MPT will split earnings from the Myanmar opera- tions roughly equally with a Singapore-based joint venture of the Japanese hrms LIuL wIII be Iormed in August, Sumitomo Ex- ecutive Vice President Shinichi Sasaki told a news conference. TIe hrms pIun Lo In- vest about $2 billion over the next decade to ex- pand service in one of the worlds least-connected countries. Well be able to reach prohLubIIILy In u sIorL pe- riod of time, KDDI Sen- ior Vice President Yuzo Ishikawa said. Kuniharu Nakamura, president and CEO of Su- mitomo, said: Our busi- ness record in Myanmar stretches over 60 years .... Using the know-how and experience that we have thus cultivated, we will do our part to support the improvement of living standards and industrial development in Myanmar through this joint opera- tion. MPT is currently My- anmars sole telecoms operator as well as the industry regulator. The government plans to cre- ate a new regulator by 2015 and divest a minor- ity share in MPT, which will remain one of four licensed operators. State- backed Yatanarpon, until now primarily an inter- net service provider, also holds a licence. Norways Telenor and Qatars Oore- doo won hotly contested bidding for two new li- cences in June 2013 and are now building their networks. Myanmars telecoms industry was tightly con- trolled under decades of military dictatorship, with the government monopolising the sector and selling SIM cards for thousands of dollars when they were introduced a decade-and-a-half ago. As a result, Myanmar had one of the worlds lowest mobile penetra- tion rates. Swedish tel- ecom giant Ericsson said in 2012 that fewer than 4 percent of its 60 million people were connected. .,.~.e.q.~.~... _e.._ KDDI . ...~ .~: . .q.q .~ ._ _., .:. -.~ . e .q.~._.. ~..:~ ~~....~.e.q... ,..:. Broad Band ..,. .:...:q~q,~~~ _.,.: .~.e.q...,....: ~ _ . q. ._ . _., .:. - .~e~_~..._~...~.e .q.. . , ..:.~ ~, ..: . ... .,._ ~. .|~ . ~ ._ . , . ._~.~~ _.,.:.~.e .q...,.. ..:~_.qq .._e ~..|~.~~..~ ._~_:.._. ~. .|~~ .~ . ...| ...: q~.~ .,~.~. _.,.: .~ . e .q.. . , .~ ._ ~~ .~_.~ .:.~ _ ~ _ .qq _~._ _e. _. . KDDI . . . . ~ ~._ _.,.:_._-.~.e .q.~_~~ ~ .,:~ .e . . . ~..~~. ~..q~,..'.: ., .. . .: ., q .. ._. . . . :. ._e .q._. July 24-30, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 13 Myanmar Summary Samsung Halts Business with Chinese Supplier Over Child Labour Fears Se Young Lee S amsung Electron- ics Co Ltd said last Monday it had sus- pended business with a Chinese supplier it sus- pected of employing child labour, less than a week after a U.S. watchdog report accused the sup- plier of using under-aged workers. The South Korean smartphone maker said it found an illegal hir- ing process at Dongguan Shinyang Electronics Co Ltd, which supplies mo- bile phone covers and parts. Dongguan Shinyang Electronics could not im- mediately be reached for comment. South Korean hrm SIInyung EngIneer- ing Co Ltd., which owns all of Dongguan Shin- yang, also could not be immediately reached for comment. Samsung added that it had previously found no child workers at the Chi- nese company in three au- dits since 2013. The latest audit ended on June 25. The Chinese authori- ties are also looking into the case, Samsung said in a statement on Mon- day, adding that it would cut all ties with the sup- plier if the allegations were true. If the investigations conclude that the suppli- er indeed hired children illegally, Samsung will permanently halt busi- ness with the supplier in accordance with its zero- tolerance policy on child labour, it said. U.S.-based China La- bour Watch released a report on Thursday alleg- Ing LIuL LIe CIInese hrm used child labour. The U.S. watchdog said it had Iound uL IeusL hve cIIId workers without con- tracts at the supplier. Samsung demands sup- pliers adopt a hiring pro- cess that includes face-to- face interviews and the use of scanners to detect fake IDs, to ensure no child labourers are em- ployed. But China Labour Watch said that Sam- sungs monitoring system wus IneecLIve. The watchdog accused one of Samsungs suppli- ers of using child labour in 2012. Samsung subse- quently said it found no under-aged workers at the facility. Reuters A man uses his mobile phone in front of a giant advertisement promoting Samsung Electronics new Galaxy S5 smartphone, at an art hall in central Seoul. K im
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July 24-30, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 14 Myanmar Summary China Urges Local Governments to Buy More New-Energy Cars Samuel Shen and Norhiko Shirouzu C hina has told gov- ernmenL omcIuIs Lo use more electric and plug-in hybrid cars as part of its drive to cut pol- lution by putting 5 million such vehicles on the road by 2020. The measure is the lat- est in a series of steps that could help Chinese au- tomakers including BYD and SAIC Motor Corp, with President Xi Jinping urg- ing government agencies to buy domestic brands. So-called new-energy vehicles must account for at least 30 percent of all cars or vans purchased an- nually by central govern- ment agencies and some city governments over the three year through 2016, with the proportion set to rise after that, said the National Government Of- hce AdmInIsLruLIon. Government agencies wIII be oered subsIdIes Lo buy new-energy vehicles, which the government dehnes us uII-eIecLrIc ve- hicles, plug-in electric hy- brids and hydrogen elec- tric fuel-cell cars. Under the new step, LIose governmenL omces are also required to build charging stations and im- prove other infrastructure for green vehicles. The new rules came days after China scrapped a purchase tax for new- energy vehicles, fearing that it had fallen far be- hind in meeting a target of putting 500,000 new- energy vehicles on the road by next year. Earlier this year, major Chinese cities including Beijing, Shanghai and Tianjin opened up their markets to electric car makers based in other cities as China moves to reduce intra-country pro- tectionism. Reuters Modis Farm Export Curbs may Ease Indiu's Jone Inution Manoj Kumar I ndIu`s InuLIon prob- ably eased margin- ally in June after the new government curbed farm exports, but a grow- ing risk that drought will shrivel summer crops could encourage the cen- tral bank to keep interest rates on hold. Prime Minister Nar- endra Modi, elected in May amid anger over ris- ing prices, has ordered a crackdown on hoarding to hold down food prices and set limits on the ex- port of staples, such as onions and potatoes. PresenLIng IIs hrsL budget on Thursday, Fi- nance Minister Arun Jait- Iey vowed Lo keep LIe hs- cuI dehcIL uL q.1 percenL oI gross domestic product in LIIs hscuI yeur, wIIIe uIIo- cating more funds to ease InuLIonury pressures. The monsoon this year appears more unpredict- able, he told lawmakers, adding that the govern- ment would take all steps necessary. Consumer prIce Inu- tion INCPIY=ECI prob- ably eased to 7.95 percent last month, down from 8.28 percent in May, while wholesale price in- uLIon NWP=EC eused to 5.80 percent, the Reu- ters poll of economists found. The government will re- lease the data on whole- sale prices on Monday around 0230 EST. Con- sumer price data is due at 0800 EST. ModI Iuces IIs hrsL cIuI- lenge as soaring prices for basic food items, such as milk and potatoes, lifted reLuII Iood InuLIon Lo 9.4 percent in May, driv- Ing wIoIesuIe InuLIon Lo u hve-monLI IIgI oI 6.o1 percent. The government is banking on stocks of food such as rice, wheat and sugar from recent bumper harvests, but has few ways to cap prices of fruits and vegetables that drive food InuLIon. The measures may prove to be inadequate in light of the supply- demand dynamics as- sociated with perishable products, absence of ad- equate cold storages and InemcIencIes In LIe do- mestic supply chain, said Aditi Nayar, an economist at ICRA, the Indian arm of rating agency Moodys. ReLuII InuLIon Ius eased to about 8 percent, after staying in near dou- bIe-dIgIL hgures Ior LIe past two years, the highest among the BRICS group of emerging economies - Brazil, Russia, India, Chi- na and South Africa. Economic growth has been stuck below 5 per- cent for two years - the longest slowdown in more than a quarter of a century. The economy is expected to grow slightly above 5 percent in this hscuI yeur Lo MurcI zo1. In 2009 benchmark New York futures swept to a 30-year high after the worst drought in nearly four decades forced India, the worlds top sugar con- sumer, to buy large quan- tities of the sweetener from top producer Brazil. The farm sector ac- counts for around 14 percent of Indias nearly $2 trillion economy, and two-thirds of its popula- tion of 1.2 billion live in rural areas. Weak investments and industrial performance have hurt economic growLI, buL hgures on Friday showing that in- dustrial output grew 4.7 percent in May on the year bettered expecta- tions for a rise of 3.8 per- cent. Output gained just 0.1 percenL In LIe hscuI yeur that ended in March. Reuters Myanmar Summary Workers sit and lie on stacked bags of sortex rice during their lunch break at a warehouse in a wholesale market in Mumbai. D h ir a j S in g h / B lo o m b e r g A model poses next to the Dongfeng EJ02 during the opening day of the Shanghai Auto Show. A ly
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(GDP) - , ... ~ q:..,.~ ,. :.q, ~~_.:._.. .._~. e~:..:.~ ._eq.q, _: . .:. . . .:....._ _e. ._~:.._. .q._. July 24-30, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 15 Myanmar Summary Myanmar Summary Muluysiun Air rops us Lkruine Attuck Iollows Ilight ,o Shamim Adam M alaysian Airline System Bhd. (MAS) shares tumbled the most in nine weeks after one of its planes was shot down in Ukraine, four months after the dis- appearance of Flight 370 contributed to the carriers biggest loss since 2011. The stock lost 13 per- cent to 19.5 sen as of 9:59 a.m. on July 18 in Kuala Lumpur, extend- ing this years drop to 37 percent, while Malaysia Airports Holdings Bhd. (MAHB) fell 4.2 percent. The FTSE Bursa Malay- siaKLCI Index retreated 0.4 percent and Malay- sias ringgit weakened 0.4 percent versus the dollar. The Bloomberg World Airlines Index slipped 0.2 percent, following a 2 percent tumble on July 17 amid speculation the crusI wIII deLer Iers. Malaysian Airs Flight 17, carrying 298 passen- gers and crew, was shot down last Thursday over eastern Ukraine in an at- tack that the government in Kiev blamed on pro- Russian rebels. The carrier, which has lost 4.57 billion ringgit ($1.4 billion) since the start of 2011, had been speeding up an overhaul of its business after the dis- appearance of Flight 370 spurred the longest search for a missing plane in mod- ern aviation history. This is shocking, Georey Ng, un udvIser for strategic investments at Fortress Capital Asset Management Sdn., which oversees about 1 billion ringgit, said in Kuala Lumpur. Investors will wunL Lo seII hrsL und geL more information later. This will raise concerns about the safety culture of airlines in general. Ukr ai ne Battle- gr ound CuLIuy PucIhc AIrwuys Ltd. (293), the biggest international carrier in Asia, dropped 1.4 per- cent in Hong Kong trad- ing while Air China Ltd. declined 1.3 percent. Del- ta Air Lines Inc., Ameri- can Airlines Group Inc. (AAL) and United Con- tinental Holdings all re- treated more than 3.4 percent in U.S. trading last Thursday. Ukraines state security service said it intercept- ed phone conversations among militants discuss- ing the missile strike, which knocked Flight 17 from the sky about 30 kil- ometers (18 miles) from the Russian border. The separatists denied the ac- cusation. U.S. omcIuIs suId LIe weapon probably was a Russian-made model used widely in Eastern Europe. The Boeing Co. (BA) 777 crashed en route to Kuala Lumpur from Amsterdam in the main battleground of Ukraines civil war. The jet didnt make a distress call, Malaysian Prime Minister Najib Razak told reporters at the Kuala Lumpur Inter- national Airport today. TIe uIrcruIL`s IgIL rouLe was declared safe by the International Civil Avia- tion Organisation, and the International Air Transportation Associa- tion has said the airspace the plane was in was not subject to restrictions, Najib said. Tur nar ound Str uggle The escalation of Ukraines crisis, com- bined with Israels move- ment of ground forces into the Gaza Strip, IueIIed u seIIo In gIobuI equities yesterday. The MSCI All-Country World Index dropped 0.9 per- cent, and lost another 0.1 percent today. Malaysian Airs ma- jor shareholder and sov- ereign wealth fund, Khaz- anah Nasional Bhd., said last month it had time to come up with a restructur- ing plan as the carrier has funds to last about a year. Asuki Abas, a spokes- man for Khazanah, said the fund will focus its energy on supporting Ma- laysian Air in emergency eorLs. He decIIned Lo comment further. The Subang Jaya, Ma- laysia-based carrier last reporLed un unnuuI prohL in 2010. Malaysian Air missed its target to be prohLubIe IusL yeur us rIs- ing prices for fuel, main- Lenunce und hnuncIng wiped out revenue gains. Analysts project losses through 2016 for the air- line, according to data compiled by Bloomberg. Tough Road Malaysian Air will have a tough road ahead to re- build its image, Hong Leong Investment Bank Bhd. analysts wrote in a report last Friday. Con- sumer sentiment on its safety record will be deep- Iy uecLed, wIIcI Ius Iur- ther hampered its hope to turnaround by 2015. The vanishing of MH370, which carried mostly Chi- nese passengers, put the carrier under global scru- tiny, jeopardizing its repu- tation and prompting boy- cotts in China. It has also hurt the country as a travel destination, with Chinese tourists canceling their vis- its to the Southeast Asian nation, according to Ma- laysias tourism promotion agency. This is beyond unlucky, Mohshin Aziz, an analyst at Malayan Banking Bhd. in Kuala Lumpur, said in a note to clients. It will take a very long time to over- turn this. Bloomberg Sogur ecit Seen by Rubobunk us Low Prices Reduce Production Phobe Sedgman T he sugar market wIII swIng Lo u deh- cit as sustained low prices curb supply for a second year, according to Rabobank International, which joined Czarnikow Group Ltd. and Kingsman SA in forecasting an end to surpluses. Global output of raw sugar will fall short of de- mand by about 900,000 metric tons in the 12 months from October, Rabobank said. That compares with glut of 1.4 million tons in 2013- 2014, the bank said in an e-mailed quarterly report. Raw-sugar prices dropped more than 50 percent from a 30-year high in 2011 as world supplies consistently sur- passed demand. Global output will lag behind consumption by 500,000 tons in 2014-2015 as production stabilizes, London-based Czarnikow forecast last week. The degree of supply tight- ening depends on how a forecast El Nino develops, Rabobank said. It is a little early to be certain that the market Is pussIng un InecLIon point, the bank said. If the question is whether we are cycling towards higher prices, our cur- rent belief is that we are indeed heading in that di- rection, slowly, with may- be a bump or two on the road still to come. An El Nino, which can bring drought to the AsIu-PucIhc regIon und heavier-than-usual rains to South America, is likely to develop by Australias spring, which starts in September, the countrys Bureau of Meteorology said on July 1. Theres at least a 70 percent chance of the event developing this year, it said. Raw sugar for October delivery closed at 17.07 cents a pound on ICE Fu- tures U.S. in New York on July 11, 4 percent higher this year. The commodity lost 16 percent in 2013, retreating for a third year in the longest run of an- nual declines since 1992. Global sugar demand will exceed production by 239,000 tons in the crop year from October 2014 to September 2015, Lausanne, Switzerland Kingsman SA estimated in May. Bloomberg .... q:. ..._ ~: . . . ..,. 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B lo o m b e r g July 24-30, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 16 Myanmar Summary Myanmar Summary BRICS Iight Wuning Cloot With $1goB Deal in Brazil Summit Raymond Colitt T Ie Ieuders oI hve oI the worlds largest emerging markets will showcase a new cur- rency reserve fund and development bank. Crit- ics say neither is enough to revive the groups wan- ing clout. Brazil, Russia, India, China and South Africa, known as the BRICS, will approve the creation for the $100 billion reserve fund and $50 billion bank at a July 15-16 summit in Brazils coastal city of Fortaleza and the capital Brasilia. The initiatives are born out of frustration with a lack of participation in global governance, partic- ularly in the World Bank and International Mon- etary Fund, said Arvind Subramanian, senior fel- low at the Peterson In- stitute for International Economics. The measures arent big enough to boost growth or cohesion in the group as foreign in- vestor sentiment sours and member states focus on issues close to home, such as Brazils elections, LIe conIcL In UkruIne and new economic policy plans in India. Its hard to see a lot of impetus at this stage for the BRICS in general and for these initiatives in particular, Subramanian said by telephone from Washington. Theres go- ing to be a lot of attention on domestic issues. Economic growth in the hve counLrIes Is projecLed to average 5.37 percent this year, half the pace seen seven years ago, ac- cording to the median estimate of economists surveyed by Bloomberg. Brazil and Russia will grow 1.3 percent and 0.5 percent, respectively. Common Poli cy Yuri Ushakov, Russian presidential aide on for- eign policy, said in an in- terview that the groups growth rate is still above that of the global average and that its economic and political weight is increas- ing. The BRICS have evolved from the original term coined in 2001 by then- Goldman Sachs Group Inc. economist Jim ONeill to describe the growing weight of the largest emerging markets in the global economy. In 2011, South Africa joined to give the BRICS a broad- er geographic representa- tion. The groups track record in pursuing a com- mon agenda on the world stage has been mixed. Its easier to say what the BRICS arent than what they are, said Jose Alfredo Graca Lima, un- der-secretary for politi- cuI uuIrs uL LIe BruzIIIun Foreign Ministry. TIe hve counLrIes IuIIed to agree on a candidate to head the World Bank in 2012 and the Internation- al Monetary Fund in 2011, two posts at the heart of their demands for more say in global economic matters. Tr ade Poli cy The summit is unlikely to provide a common front to push ahead global trade talks either, even though the World Trade Organization is headed by Brazilian Roberto Azevedo. Brazil itself has increased protectionist measures under Presi- denL DIImu Rousse. Airbus Jet Relaunch Heralds Busy Aerospace Show I wouldnt say that there will be a common outcome in that sense, but certainly there will be discussion on WTO mat- ters, said Sujata Mehta, secretary for economic relations at the Indian Foreign Ministry. India and South Africa have signaled they may backtrack on a trade fa- cilitation agreement reached at the WTO talks in Bali in December 2013, wrote Carlos Braga and Jean-Pierre Lehmann, professors at Lausanne, Switzerland-based IMD business school. Still, Indian Prime Min- ister Narendra Modi is unlikely to rock the boat at the Brazil summit, said N.R. Bhanumurthy, an economist at the Na- tional Institute of Public Finance and Policy, a gov- ernment-backed research institute in New Delhi. Domestic issues are dominating his agenda, especially growth and in- uLIon, BIunumurLIy said. Bloomberg Tim Hepher and Victoria Bryan A Irbus wIII kIck o the Farnborough Airshow with up to 100 commitments for its revamped A330neo wide- body jet, industry sources said, deepening a con- test with Boeing for up to $250 billion of orders at the core of the long-haul jet market. After months of specula- tion, the European plane maker will unveil an up- grade of its popular but ageing A330, powered by Rolls-Royce engines and oerIng 1q percenL In IueI savings. Airbus Group de- clined to comment. The upgraded A330 is Airbuss attempt to pro- Iong LIe IIIe oI ILs prohL- able twin-aisle jet, as the European company tries to preserve market share against Boeings much newer 787 Dreamliner. The A330 has enjoyed a resurgence of sales be- cause of delays in deliv- eries of Boeings tech- nically ambitious but LemperumenLuI curbon-h- bre jet, but it is in need of a refresh to keep selling. Analysts say it also plugs a potential future gap in the Airbus wide-body jet port- folio after poor sales of its A350-800 - the minnow of the next-generation A350 family whose development looks set to be halted or suspended as a result. The commercial de- but of two models called A330-800neo and A330- qooneo, hrsL reporLed by Reuters, heads a busy schedule of announce- ments on day one of the show, at which Boeing could hit back promptly with new sales of its 787 Dreamliner. Analysts have until now generally predicted a low-key show, because of steadily growing fears of airline overcapacity. But industry sources gathering for the July 14- 20 event said evidence pointed to well over 500 orders or commitments ranging from a 100-plane lessor deal to a single plane for Fiji. It may not be immediately apparent, however, how many or- ders are new. Malaysias AirAsiaX has campaigned for an A330neo to save on fuel bills but is seen likely to exchange any new order against at least part of its 38 outstanding current- generation A330s. Boeing begins the week with a clear advantage after gaining 703 gross orders up to July 8, or 649 after cancellations, against Airbuss end-June total of 515 gross orders and 290 net. Reuters India's Prime Minister Narendra Modi (L-R), Colombia's President Juan Manuel Santos, Brazil's President Dilma Rousseff, Chile's President Michelle Bachelet, China's President Xi Jinping and Ecuador's Presi- dent Rafael Correa talk at a group photo session during the 6th BRICS summit and the Union of South American Nations (UNASUR) in Brasilia. 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July 24-30, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 17 Myanmar Summary Mal Langsdon I nsurers are eagerly eyeing exponential growth in the tiny cy- ber coverage market but their lack of experience and skills handling hack- ers and data breaches may keep their ambitions in check. HIgI prohIe cuses oI hackers seizing sensitive customer data from com- panies, such as U.S. retail- er Target Corp or e-com- merce company eBay Inc, have executives checking their insurance policies. Increasingly, corporate risk managers are seeing insurance against cyber crime as necessary budget spending rather than just nice to have. The insurance broking arm of Marsh & McLen- nan Companies estimates the U.S cyber insurance market was worth $1 bil- lion last year in gross written premiums and could reach as much as $2 billion this year. The European market is cur- rently a fraction of that, at around $150 million, but is growing by 50 to 100 percent annually, accord- ing to Marsh. Those numbers repre- sent a sliver of the overall insurance market, which is growing at a far more sluggish rate. Premiums are set to grow only 2.8 percenL LIIs yeur In Inu- tion-adjusted terms, ac- cording to Munich Re, the worlds biggest reinsurer. Insurers Struggle to Get Grip on Burgeoning Cyber Risk Market The European cyber coverage market could get a big boost from draft EU data protection rules in the works that would force companies to dis- close breaches of custom- er data to them. Companies have be- come aware that the risk of being hacked is una- voidable, said Andreas Schlayer, responsible for cyber risk insurance at Munich Re. People are now more aware that hackers can attack and do great damage to central infrastructure, for exam- ple in the energy sector. Insurers, which have more experience handling risks like hurricanes and hres, ure now rusIIng Lo gain expertise in cyber technology. L Is u dImcuIL rIsk Lo price by traditional insur- ance methods as there currently is not statisti- cuIIy sIgnIhcunL ucLuurIuI data available, said Rob- ert Parisi, head of cyber products at insurance brokers Marsh. Andrew Braunber- gon, research director at U.S. cybersecurity advi- sory company NSS Labs, said that some energy companies have trouble persuading insurers to provide them with cyber coverage as the industry is vulnerable to hacking attacks that could trigger disasters like an explosion in a worst-case scenario. Pricing on policies for retailers has climbed in the wake of recent high- prohIe breucIes uL TurgeL, Neiman Marcus, and oth- er merchants, he added. A Necessar y Cost Though still very much in its infancy, the mar- kets potential is vast with cyber crime cost- ing the global economy about $445 billion every year, according to an es- timate last month from the Washington-based Center for Strategic and International Studies. While many companies have in the past counted on their general com- mercial liability policies for coverage, they are increasingly taking out standalone contracts. One reason for the change in attitude is a New York state court rul- ing in February against Sony Corp. The company, which has appealed the decision, had sought to force providers of its gen- eral commercial liability insurance to foot the bill for class action lawsuits following a major 2011 cy- ber attack on Sony Play- Station Network. This issue with Sony is that it did not have a stan- dalone cyber product, said Peter Beshar, general counsel at the Marsh & McLennan Companies. Target was better pro- tected when some 40 mil- lion payment card num- bers were stolen last year. It had $100 million in cy- ber insurance, according to the trade publication Business Insurance. With low interest rates limiting revenues from insurers vast bond port- folios, the extra under- writing income from the fast growing new market is all the more welcome. The cost of cyber insur- ance varies depending, but on average $1 mil- lion in protection ranges from about $20,000 to $25,000, according to Beshar. German insurance giant Allianz says its premiums for 10-50 million euros in protection run about 50,000-90,000 euros in annual premiums. For protection of over 50 mil- lion euros, companies can get coverage up to 300 million euros through co- insurance policies involv- ing multiple underwrit- ers. Whether insurers are oerIng coveruge uL prIc- es commensurate with the risks is anyones guess as long as underwriters have scant experience with hackers. Gr owi ng Pai ns AXA, Europes second biggest insurer, is making a big push into the cyber insurance market, but has so far not paid out a single business claim. I would like to see a successful claim, because that would be an expe- rience, said Philippe Derieux, deputy CEO of AXAs global property and causality business. AXA is hiring computer experts and engineers to build up a centralized cyber team, but Derieux said there is a shortage of quuIIhed LuIenL. It is hard for insur- ers und brokers Lo hnd people able to handle the product, Munich Res Schlayer said. Reuters R e u t e r s ~:.. . . , ..:.._ . ~ : ~:.. .. .~ ~ -~..:.. : e _e ..:. ._.~ .~ . ~.~ q ..: ._ . e~ ~:.:.~ ~ ~ e q, ~.~ ~_~ . ~ . . ~ . ~:. ,_ . . ~ . ~.~ ~.~ ..e:~ qe _. . ~.q..:.._~: ,.~-q_ qe.~.:.~ ~q,.~:.q ._. .~: . .q.q . . ~ . ._.. q: .,.,:.:.._ .~: _.. . ~~ ~ ~:.. :._. .~:. q. .~:.._.._~ .q ._e. . .:._ e _. .:_~ ._ .~..q ~, . ~ :... ~~q ~:......|.-~,e. ~ ~~.~. _...._..~ ..'.:~..eq_.. e... ~ . . . e ~ _. ~~ .: .._~:. .q._. ~.~.:.~.,_e e~~: .:.-~.q:e.: .q:..q . ._ ~: . . .:_ ~._ e . ~ :~:.. ~:~, . ~. . _ e. . ~, .q .q~ q ..q:~ .._. July 24-30, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 18 Myanmar Summary Vietnams Biggest Pharmaceutical Compuny to Invest $q.-m in Myunmur Aye Myat D HG Pharmaceuti- cal JSC, Vietnams largest drugmaker by market value, said it is negotiating with a My- anmar company to start a joint venture in the Southeast Asian country. TIe hrm muy InvesL us much as 91 billion dong ($4.3 million) to make pharmaceutical products similar to those it sells in Vietnam, Chief Executive Omcer PIum TII VIeL Ngu said in an interview with Bloomberg. Construction of a fac- tory in Myanmar may begin next year if agree- ments are reached and approved, Nga said. According to Vietnam- ese media reports, she conhrmed LIe possIbIe investment but noted that the company was still in the survey period. We have just conduct- ed a survey to understand market demand and es- pecially the law in Myan- mar, she was quoted as saying in the VietNamNet news website. The move comes as Vi- etnamese authorities are tightening their grips on the sale of prescription drugs sold over the coun- ter. We are preparing for the reduction of antibiotic sales due to tighter con- trol, Nga told Bloomb- erg. In Vietnam, 78 per- cent of antibiotics are sold through drugstores with- out prescriptions from doctors, according to a re- port by FPT Securities Co. Last year, 41 percent of DHG revenue came from antibiotics. The company also sells analgesics, nu- tritional food, respiratory, cardiovascular and diges- tive medicine and skin- care products. Myanmar is similar to Vietnam 10-15 years ago, but they can grow faster. Myanmar does not have many pharmaceuti- cal companies. Therefore, they have given some spe- cial incentives for phar- maceutical companies. We will gain an advantage if we cooperate with a local com- pany, Nga was quoted as saying in Bloomberg. Several Vietnamese en- terprises such as Hoang Anh Gia Lai Group, FPT and the Bank for Invest- ment & Development of Vietnam (BIDV) have al- ready invested in Myan- mar. - e~ ,. . - ~_~ ... ...~|. ~ . . ._ ~ . ~ ~. . _e. _. . . ~~ . ...~ ~ .~. ~.:...qq:.._ DHG ...~|.~...q.~.~._ ~.q .~: ~:q ...~ , . ~ -...~ ~ ~ ... .. ._~.,_e _.,.:~.~ ~. . . ~~ .~ . ...| .. . ~q,...~q._~:. .q ._. ~. .|...~|.~ . ~ ._ _., .: .~ -e~,...| . ~ .e ~..q~, ..'.: , ... ,, ., .~ ...~|. ~ . . .q.. . , ..:._ q .. ._. . . . :. ._e ~..|...~|.~.~- CEO Phan Thi Viet Nga ~ . , . ~ . _. .. . ..: ~ ~:-.~. ~. ~. . ~ ._ .:_ ~:.. ._ . ..:~ _ .~ .:. ~~_ _._. ..|~ DHG ._ _.,.:.~ ...~|. ~..._.~,~..~ .: ._ . . ~~ . .~ ~_ ..:~ .:.._e .q._. .,.._ ..~ DHG - ~.qq.- ,~ q:..,.._ ._ ~ ~....:..q:.._...qq ._.._e._. .e .~ . ~ ._ ~ ~~~...:~ ....:. ~: e:q_e_ . ~ ~.:.~.:.:. ~ .~ , .. .._ ~: ..q:|. .._....:. .......:. ~_ . ~.:.~.q , .. . .. . q:.. _ .. :.~ ~ . . .q:...~q._. An automated machine works on purication of a drug. D a v id
P a u l M o r r is / B lo o m b e r g g Remuin in Banking Licence Race Zwe Wai T he Licensing Com- mittee for the award of banking licence has shortlisted LwenLy-hve IoreIgn bunks to advance to the next round in the bidding pro- cess to grab a licence to operate in Myanmar. As part of the second stage of the award of banking licences in My- anmar 25 proposals have been received out of the o pre-quuIIhed uppII- cants, according to a re- lease from the Central Bank of Myanmar (CBM). UK-based banking gi- ant Standard Chartered pulled out from the race. The Licensing Commit- tee will now evaluate each RFP response following detailed quantitative and qualitative assess- ment criteria, the CBM release said. The Licensing Com- mittee will announce the preliminary License ap- proval by the end of third quarter 2014, the Central Bank added. The preliminary ap- proval will be followed by an intervening period in which operations have to be set up. Within the intervening period, the licence re- cIpIenL wIII Iuve Lo IuIhI commitments made in the proposal as well as to take all necessary meas- ures to ensure functional banking operation from day one of business, the Central Bank said. The Committee looks forward to analysing their plans for the development of the banking sector in Myanmar and to select- ing and announcing the Successful Applicants, it said. The banks are: ANZ Bank from Australia, In- dustrial and Commercial Bank of China (ICBC); BRED of France; State Bank of India; Japans Mizuho Bank, Bank of Tokyo, Mitsubishi UFJ, Sumitomo Mitsu Banking Corp; Malaysia Maybank, OCBC, RHB Bank and CIMB; State Bank of Mau- ritius, Singapores OCBC, DBS and United Over- seas Bank; South Koreas Kookmin Bank, Shinhan Bank and Industrial Bank of Korea; Taiwans Ca- thay United Bank, E SUN Contd. P 20... July 24-30, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 19 Myanmar Summary David Mayes I was recently asked by a client about an investment newslet- ter he had been receiving that seemed to have very uncanny accuracy. Very many people get caught o guurd by LIese Lypes of letters much to the det- rImenL oI LIeIr hnuncIuI well-being, despite the fact that some of them do in fact add value. Know- Ing LIe dIerence beLween the genuine letters that actually give value and the bulk of them that are some form of a scam can be dImcuIL even Ior pro- fessionals, which is why I generally advise people to steer clear of them. One oI LIe oIdesL hnun- cial scams involved mak- ing opposite recommen- dations to an initial list of thousands of people, half of which the scam artist would have gotten it right for. After several rounds of this, usually delivered unsolicited to peoples fax machines, they would have built up a track re- cord of being right with a small percent of the peo- ple on their original list. They would then collect fees based on skills they did not actually possess and when the clients lost money they would move on to the next batch of suckers. Most modern newsletter arent so blatant, but they have often done nothing Beware the Investment Newsletter more than adapted the general scheme. Keep in mind a newsletter is not usually regulated and has disclaimers to protect them, so they can make any fantastic claim they want without having any proof to back it up. Trading seminars are similar in this regard. They claim things like learn the system I used to earn 1,100 percent from the market in just six months with a 97 per- cent win rate or I have consistently beat the S&P 500 by over 800 percent since 2002 using this sim- ple strategy and they do not need to give you any proof to back up their claims. Another common tech- nique is to make so many predictions that you get a couple of big winners. Then the letter writer highlights these while simultaneously ignor- ing the other 95 percent of past predictions that either lost money or did nothing special at all. Some will even blatantly lie and just look at a stock that has made a dramatic gain and claim to have bought in with their per- sonal account at exactly the right time and then also sold very near the high of the move. They will even make it a few poInLs o on eucI sIde Lo make it seem more believ- able. When looking for proof of past performance from anyone who claims to be an investment guru, always look for audited results. Even with them, many of the big fund managers will do great for ten years and then myste- riously start losing money as soon as you have in- vested with them. I have had this happen to me more times than I would like to remember. Diver- sIhcuLIon, us uIwuys, Is LIe only protection against this. The sad truth about the world is that people actu- ally do build entire busi- nesses around blatant lies such as these, and their unsuspecting victims of- ten pay exorbitant fees on top of making invest- ment losses. The invest- ment newsletters I do like are the ones that simply provide research and sta- tistics which you can use to make your own trading decisions. Even though I am no longer a profes- sional active trader, these were LIe ones our omce was happy to pay a sub- scription fee to because they actually provided value that you could then incorporate into your sLruLegy und prohL Irom. Please do not fall for an investment letter which is nothing more than a sales pitch to open an account. You might as well go to the casino, where at least you will get free drinks. David Mayes MBA lives in Phuket and provides wealth management services to expatriates throughout Southeast Asia, focusing on UK pen- sion transfers. He can be reached at 085-335-8573 or david.m@faramond. com. Faramond UK is regulated by the FCA and provides advice on taxa- tion and pensions. ._ ~:... . ~ ~, .~: .e:~ ._ ~. . ~ , . .q:~ .q:~ .:..:~ ~. .q ._ .e..q:~.~~.~ .:..|..: q..._.....~. .:.:.. .~.~_ ...e..| ._. .~.~:.~:.:..:.. : ~. .~..:.:.- ~e . .. ~ . q_. .. ._~.,. ,:. ., . qe . .| ._ . .~ . . :~. ~.~: ~, e .q ..: ._ . .. . , . .: ~. ~ ~.~ .:. ~ ._ .:~ _ .:. . . :..: ~. . ~_:.:. . .q. ~ . _.:.q_. . . : ~. .~ . .:.~~ ~ . .. e ~ ..:._~: ~.:.~:. _e .~..:.:.~ .~ ._e ~,.~:~_~_...q ._. . ._~.. .~ ~..:. ...: ~. . ,_ . . :. . ~. . . : ..:~,.. .,~ ~ ., . , .~_~ _..~ .:.. _. . _e.~: ,_._e ~..q. . ~. ~~ ., ~~ ~ . , ~, ..: ., . , ..~ .:._e. .,._ _e. ._ . ~.,_~:.:..:~.| e. ~... ~.~~~ .,.,. .~.~~~.,~,.q.:_.. ~. , ~ . . ._ . .:.._ .~..:~~~ .~..~ .~:~..~:._. e., ..~ .~ .. :.:.. : .q~._...q..:._. .~:, .~ ~,_ .e _. , . ~. . . . ._.:.. .|..~ .. :.:. ._ _~..~.q_.. .q.. ~:~,.e._~:. ._~_:.~ ~ . ~~:~~ e .:.._ . _ . .:._~._e ._ ._ ~.:~~:...q .e: .~: _ . . .:.q:.._ ~: . ._~: _:. ._ ..,:~ . ~. . .:...:,_ ... .~. . . :._ . ., . , ..~ ~.:.~_.:.. . _ ...._.~_.~~.._~.|~ ~. _~ . ~ ~.:.....e: _._ ~,._ q:..,...: ~..:.~ .e:~:._.._e. ._. q..._....,_~._e..|._ e ._~_:.:. ._ . ~ .. ~.:~ ~:..~ . . .:q...:...: q...:.~ .: _~_q._. q.:..:.q . ..: . q .. ._. . . . ., .,: .:.._ .e....:~~ .~: _. .,_. ..,:~ . q .. . _. . . . ~ . , . ._ ., ._~e . : ~, ._..:._ .:.._ . _~ q. _. . ~.~ ~_~. . .. ~ . . ..: .~: . ~, .~: _~ . e . ._. ..~~.. ~_e. . ~:~ e q, . : _e, ~~ q .. . _...q,.:_e.._. ~,.~:_~~..: q... _. . . . .~ .. :. .. : ~ e ~ ..~: . ._e~ .~.:..q, ~~ ~ ..~.,. ~.~~.~.:. .~ .~ .:.....:.~.. : .._e.._. .q:.~q,.~ .~ _e .e,.:.,~....: .~..:..~ .e_~_.~ ..|... ~.:. ~:...:. ._~. ~.e:e:.~:.:. ~.~:...:~.q..__e. ._. R e u t e r s Govt Drafts Open Tender Bill Htun Htun Minn T he United Nations Omce Ior ProjecL Services (UNOPS) and the World Bank are currently working with the Myanmar government to draft the Open Tender Bill. Once passed, this bill will serve as the legal framework for inviting government procurement tenders and awarding construction contracts, according to Daw Le Le Thein, deputy union min- ister for the Ministry of National Planning and Economic Development. The bill will be based on the current tender evaluation criteria, which includes the level of ex- perLIse, hnuncIuI sound- ness of the company, and budget quote from the bidders, she continued. Tender invitations are currently regulated and or- ganised under the April 5, 2013 ordinance issued by President U Thein Sein. The ordinance provides guidelines for forming committees for tender in- vILuLIon, oor prIce cuIcu- lation, tender evaluation, and quality evaluation. The bill is meant to ad- dress the varying tender regulations and processes by standardising the for- mal process for all min- istries, state and regional governments, and busi- nesses, according to the deputy minister. In January, the Ministry of Construction took the lead on streamlining the tender process by pub- lishing and distributing a handbook to all state and regional governments that instructs ministry of- hcIuIs und empIoyees on how to award contracts for projects. Myanmar Summary _.,.:.~ ~..q~e.:. . _._._:. ~~_e .. _ .~e e q, ~ .|..'e _. . . ..:~...q...,..:. ~, ,~ ...q:~ .,. . . ~:..~: ...q, ~ ... . . , .. . . ~ ~, ..: . , . _.,.:, United Nation OIfce For Project Services Myanmar (UNOPS) ~. : ~ ~ . _.........~q_.. .~ .~ _..._~. ..q.. _.. . :. ._ e ~. ..:.. . ~ , .. . .. :. .q.e_e.~.~~.q.~,_~._:, _._ .: . . ~ e~, _~ . ..'. ..,.~ ._.:._. ....q.._..q:~ ~_ ..:~ .q.. . , ..:.~~ ~ ~~e~.|~....:.- ~..~..q:. ~.|_. .... , .~.~ ~.~ .:...' ~ ~.~....~.~.~.:. ~ ~._...q...__e.._~:. .~,_~.~ ._.:._. .~q~. ,~ _.,.:._ q .. ._. . . . . . , ..:.. . .. :. .q...,..:. ..~._ .q: ~ ~.|..'q, ._.~...~ .:. ~ . .~: .. ~, . ~ ~~, ... -_.. q~~ ~_.,:...: ,_~:..~ .:q._. July 24-30, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 20 Myanmar Summary Myanmar Summary From page 18... Newly Launched Chamber of Commerce Aims to Spur British Businesses in Myanmar Jacob Goldberg D ozens of leaders of Yangons grow- ing business com- munity gathered at the Strand Hotel in Yangon to celebrate the launch of the British Chamber of Commerce in Myanmar on the evening of July 16. TIe CIumber Is LIe hrsL chamber of commerce to open and register locally in Myanmar following the rollback of EU sanctions amid the countrys politi- cal and economic reforms. According to the Brit- ish Embassy Rangoon website, the establish- ment of the Chamber is aligned with the British Governments position to support responsible, sus- tainable and transparent investment in Burma. At the time of the launch, the Chamber boasted 86 member companies in total, making it the larg- est chamber of commerce currently active in Myan- mar. The launch event kicked o wILI remurks Irom An- tony Picon, managing di- rector of Colliers Interna- tional Myanmar, who also serves as President of the Chamber. It is an exceptional time for our Chamber to set up in Myanmar as the country begins its journey towards sustained eco- nomic and social develop- ment. We aim to ensure that the Chamber is a dy- namic, inclusive business group LIuL reecLs LIe memberships needs and adds value for companies operating in Myanmar, said Picon. In addition to British companies, the Cham- bers membership is open to Myanmar companies as well as foreign companies with business interests in the UK or Myanmar. Picon extended this in- vitation, saying, We en- courage Myanmar com- panies to get involved in the Chamber to make connections with inter- national businesses and to help keep informed of business trends world- wide. British Ambassador to Myanmar Andrew Pat- rick said, I believe Brit- ish business can play a central role in support- ing economic growth in this country, creating jobs and raising skill levels. [The Chamber] has the full support of the British Embassy. Secretary of the Myan- mar Investment Com- mission U Aung Naing Oo said the Chamber will strengthen ties between companies, government and people. He also highlighted the importance of the Cham- ber in the eyes of the My- anmar government by remurkIng LIuL IIs omce had recently been moved from Nay Pyi Taw to Yan- gon to be closer to the rapidly growing business community. According to Lisa Weedon, director of UK Trade and Investments Burma, the idea of estab- lishing a British chamber of commerce in Myanmar sprouted from a much smaller, informal group of business leaders who met regularly in Yangon to discuss business op- portunities and practices in the emerging Asian market. When the idea of set- LIng up un omcIuI cIum- ber of commerce arose, the group secured seed funding from the British government through its Overseas Business Net- works Initiative, which seeks to strengthen the UKs business to business networks in 41 countries. Myanmar was added to the program when then- Minister for Trade and Investment Lord Stephen Green visited the country last year. The establishment of the Chamber comes as busi- ness between the UK and Myanmar registered a 244 percent increase from 2012 levels. The value of British exports to Myanmar sky- rocketed from 12.8m to 44m in 2013. According to John Long- worth, director general of the British Chambers of Commerce, the Chamber brings the UK one step closer to achieving the goal set by Prime Minis- ter David Cameron of in- creasing British exports to 1 trillion by 2020. In addition to provid- ing a market for British exports, the Chamber will also strive to integrate Myanmar companies into the opportunity that has generated so much inter- national fervour in the country. Stephanie Ashmore, executive director of the Chamber, said that she hopes to organise bi- monthly events for Cham- ber members, including training sessions for My- anmar business profes- sionals. However, Ashmore also noted that Myanmar com- panies have been slower to join the Chamber than international ones, pos- sibly due to a combina- tion of feeling excluded by the name of the Chamber and simply not seeing the benehLs oI joInIng. Nonetheless, Ashmore remains committed to boosting membership among British, Myanmar and international compa- nies and ensuring that the Chambers activities allow uII purLIes Lo benehL Irom the business opportunity in Myanmar. In addition to seed funding from the British government, the Cham- ber is supported by four Founding Patrons BG Group, Jardines, Pruden- tial and Standard Char- tered Bank all promi- nent international British corporations. The Chamber is also supporLed by hve GoId Patrons Aggreko, Brit- ish American Tobacco, Herbert Smith Freehills, Shell and Stephenson Harwood in addition to dozens of other Brit- ish, Myanmar, and other member companies. Commercial Bank and First Commercial Bank; Thailands Bangkok Bank, Krung Thai Bank, Siam Commercial Bank, Kasikornbank and BIDV from Vietnam. ~ . .~' q~ ., ~ .q, . e~e_ ~....: _-~, . .. :.~ .., .~. ... (British Chamber of Commerce) _.,.:.. ~.q:~_...~ .~ ~.. .~,:.. q, ~ , . .. :. .q.~..~~.. ...:., . .|~ ..| ..:.. : ~~.q:~ ._~._. _.,.:. - . .q.. . .. :. .q.~._ .: .~. .:.._ ~: .q:... . . ~ . . .:.~_e_ . _e_...:..:_...,:~ _-~, . . . :. ~ . ., . ~. . .. .: _., .:. ~ . ~ . ~ _e . . ..:....~.._e.._. e...,~ ~...._ ~e~~.~ ' .q._e _.,.:.~ ..q:..,..: . .. :.~ .., .~. ..:. _ ~_~ .. .~. ._e. ._ .~. . .. ~ _- ~ , ~ . ~ .:..:.~ _.,.:~.~.:.. _.,.:. ...:..q.~..' .~~.:...: ~_ .:._ ._ .~ . ~ .:.._ . ~..~.q, ._ ....:. ._~:. .q._. _.,.:.q ...:..q...,. .:. ...: .~: _ . .,. ~. ~ . . , .~ . _ ... :..q. ~. ~.. ..:.. ~.. ~~ .:.~._~:. ~.~..: ......_~q:. _-~,...:..q. ~.... _., .:. ~ ~_ .: q, ~_~ _~ qq . _~_. . _e.._. J a c o b
G o ld b e r g (L-R) British Ambassador to Myanmar Andrew Patrick, Managing Director of Colliers International Myanmar Antony Picon, Executive Direc- tor of the British Chamber of Commerce Myanmar Stephanie Ashmore, UMFCCI President U Win Aung, and Secretary of Myanmar Invest- ment Commission U Aung Naing Oo. ._.:.~.:.. ~.. , .. . ~ . . . . :. ....q..~:.~._ ._.:. ~ .~ .~:..q..e :._.. e.~.: _.,.:. ~ ..~.qq.q.~~~ ~.....~..q, .,:~ ~...~~.q:~.:._._e. ._. .~e~.~..~~... ~_e. ~_~~. .q..e.q ..: ..:~:.. ,~ . ~......~ .~ .~. qq:.._~:. _.,.:.-e ~~ ~_.,.~~q .q ._ ._- ~ , ~._.. ~ Standard Chartered ~..,._~..: _. . . . ~ ~ . :.._~: .. q ._. July 24-30, 2014 Myanmar Business Today mmbiztoday.com FEATURE 21 Myanmar Summary Contd. P 22... Contd. P 22... Education Reform: Lessons for the Future David Ross M uch has been suId oI dImcuI- LIes oI hndIng skilled workers in Myan- mar, particularly outside of the big cities, Yangon and Mandalay. Much more has been said about Myanmars education system and its failures in addressing shortcomings in academic achievement, student participation or the quality of graduates. The i ssues What is known is this: Only 50 percent of chil- dren in Myanmar who could attend secondary school do. School is only compulsory for students Ior hve yeurs, uILer wIIcI many drop out or fail to continue their studies, while university educa- tion is woefully under- funded and poorly gov- erned. If a student were to complete high school they then could choose to follow their studies in the tertiary sector; however, there they would have to deal with a system whose complexities, shortcom- ings and geographic dis- persal make further study deeply frustrating. In addition, its been in- dicated that although My- anmar has laws specifying primary education is free, parents are often asked to contribute money, either to secure entry to a better school or make up shortfalls in fund- ing. Based on feedback from Yangon residents fees can range anywhere from K100,000 ($100) upwards of K2,000,000 ($2,000) per year, high hgures In u counLry wIere the average monthly wage is about K100,000 and many earn less. Parents must then make a choice as to the value of education, as opposed to the expense incurred by children being absent from work, especially giv- en a third of all children in the country are em- ployed in some capacity, uccordIng Lo hgures Irom the UN. Seeing children of school age out almost any day working in teashops or stalls is a common sight throughout Myanmar's cities. Children that might otherwise be in school in another country are not rather they work to sup- port themselves or their families. Working children earn money that families might otherwise not receive, money that goes to pay for expenses any household might have. If children do not work they cost the family money in addi- tion to the costs that must be paid for school. In addition to purchas- ing uniforms, books and general day-to-day ex- penses of school are the extra costs parents must pay for children to attend classes after school to make up for the short- falls in curriculum. The cost of tutors, many of whom are the very same teachers from school, can range anywhere upwards of K 70,000 per month. Teachers in Myanmar are currently paid anywhere between K90,000 and 100,000 a month. Root cause The issues with Myan- mars education system are not new, many of them stemming back to decisions (or lack thereof) decades in the making and structural inequali- ties in investment be- Lween heIds. NoL uII sLu- dents are equal in the eyes of those who pay the bills. A 2013 report Invest- ing in the Future: Re- building Higher Educa- tion in Myanmar states that Myanmars primary, secondary and tertiary education sector must contend with a dual chal- lenge of excessive central- isation and the process of decentralisation that is currently underway. TIe reporL IdenLIhes 1 dIerenL mInIsLrIes over- seeing higher education, of which the Ministry of Education is the most prominent. However the ministry has an addition- al 10 departments over- seeing education and an additional two units over- seeing higher education one for upper and another for lower Myanmar. The report also found that although there was one education ministry, with two departments overseeing higher educa- tion, for a country of more than 60 million people, the education system also suered Irom un Issue oI fragmentation with 12 ministries overseeing op- erations of universities. The issue of fragmenta- LIon Is reecLed In LIe Iur- ung nuLure oI LIe unI- versities which through government policy were scattered throughout the country, unlike the case in many other countries where tertiary education institutions are clustered in one place. Almost all of Myan- mars non-governmental schools were nationalised following the 1962 coup. The system has been structured in this way since at least the 1960s, with some tipping this as a government strategy aimed at averting large scale student mobilisa- tion and participation in political demonstrations. Universities have been shut down at times, some- times for several years, the most notable example being the closure of Yan- gon University following demonstrations there in 1962 followed by the dynamiting of the student union building or the pe- riod in the 1990s where universities were closed for three years. With the fragmentation of the university sector, with many campuses or departments in distant reaches, many students now complete their ter- tiary schooling remotely. The outcomes of this ed- ucation, for some, have been compared to be less valuable than the paper the degrees are printed on. Wher e i ts goi ng The lack of a highly skilled workforce has not gone unnoticed. Several assessments of Myan- mars economic outlook have pointed to burgeon- ing numbers of foreign workers in skills-based sectors as proof of soft- ness in numbers of quali- hed proIessIonuIs. To address this issue several countries and non-governmental or- ganisations have com- mitted to funding pro- jects to improve facilities or standards at various educational institutions. The most recent example, at the time of writing, is Australian Foreign Min- ister Julie Bishops visit, where she announced ad- ditional funding of $27.8 million to boost services in 43,000 schools and improve teacher training programs. She said in a statement, Education is essential to the success of the My- anmar governments brouder reIorm eorLs. Improvements in educa- tion will help people de- velop the skills to take ad- vantage of the expanding economic opportunities. Countries such as Ja- Students at a school in Shwe Koeko District, Myawaddy. W a i L in n
K y a w
The Myanmar government in the
2012-13 budget increased funding or education to almost $1 billion, almost one percent of the budget. This is compared to the 19 percent or $16 billion of national budget Thailand, a country of similar size, allocates to education. _., .:. ~ ~. .~ . . .:. q :..|.._~: . _~ . e, .:.. : ._.: ..q..:...:.q._.. ._:.q. .,.. ,.-~:.,_..~.:. ~:. ~~e.~~._~:.~ .. ._~.q..:.~._.:.:. ._.._._e.._. _.,.:~ .~:.~~q._ ~qe~....:.. ~ q:. .,..: ~.e~,..~:.. ~~ .q:~ ._ ..~: .. :|.. . .:._e...,~~q, .~.~ :._. . .,:~ . .~ .~:. . ~ _. .. .e ~ .~ .~~ _. .~ _e. .:_~._ .. ~ .q ~.... e . .. ~. . . : ~. . ...,_~._e ..q..:. .:. . : ~... .:. - ._:.q. ~~~ ~ , ~.q ~ ~_. ~... .:.~. . .. . .~: ._ ~~ ~ ~ . ..: . :._. .~ ._. _ . .~ ~ .~ .,q._ ..~: . ~~. .,.~...q~~~_. .~:.. ,.,:~.. ~q.:. ~~ ~ ._ .~ , ~.q ~ ~._ . q.,._. _.,.:._:.q..,.-_..,: .:..: e.. ..'..|~.:_.. .e ~ .e . . . ..:. ._e~ .~.:. ..e~ .._e~.._. . _. ..:.,. :.:q. ,e .e ~. . . ~. . _~:. ._ .. .:.~ ~._.. .,_. ._e. ._ . _: .......:.- .~..~ .~: . .:. .:. ~:. . . .: .~__~.|. _., .:. ~ ~. _. ._: .q.~_~ ~,_~._:, ~, .~ _~ ._~. .~ q _. . ._:.q.~, _~ . _:,.: ~.q.~.|.._e.._. ~~ . . .:.~ ~, _~._:, ~ . ~ ~~~~_.:._.:._~._~.., .._~:._. ._:.q..,..: .~..:.q.,_.. ~..q.~|. _e ~~...:.~ .~. _e, ~~ :._.._e ._:. _~:. q, ,e.~..:.. .:..q:~q _..._~: .~:..:.~.:.. . : ~.~.. .,. _e .: ~. _. ._:.q.~ _. .. ._~_. . q.. ~.,_e ~q_ ~. ..:. . , . : ~...:.._. __..,:~ ~ ~ e q, . ~.:.~_.:.. NGO .:..., _._:.q._:,~.:.~_.:._. ~ q, q, . . _e_ ._ ....._ . . ~ , ..:. ..: q ~ .:_~._ . _..._~... ..'.: ... .,..:~.q, ._~_::. _. . ., . ~~:. ...| ...: q ~ .q..~ . (JICA)~._. ..'.: , ... ', ., . _ ~ q, ._~:.... ~ ~~ _.:. ._ ._., .:~. .q~._ . ~~ July 24-30, 2014 Myanmar Business Today mmbiztoday.com FEATURE 22 From page 21... From page 21... pan, India, Singapore and the USA have launched programs which aim to improve education stand- ards. The Japan Internation- al Cooperation Agency (JICA) recently commit- ted 2.5 billion ($24.63 million) to education colleges in Myanmar, to train teachers in basic education. JICA indicated at the time their reason for investment was the poor quality of educators, which deters many from further study. These new investments, including an increase of budgetary allocations to education and the reo- pening of Yangon Uni- versity to undergraduates suggest further changes in government attitudes towards education. The Myanmar gov- ernment in the 2012-13 budget increased funding of education to almost $1 billion, almost one per- cent of the budget. This is compared to the 19 percent or $16 billion of the national budget of Thailand, a country of similar size, allocates to education. In addition to the changes underway in the education system there have also been education investments to service burgeoning populations of expatriates or moneyed local residents, many of whom are distrustful or dIssuLIshed wILI IndIge- nous educuLIon oerIngs. UK-based British Schools Foundation (BSF), the governing body of a worldwide net- work of British Interna- tional Schools, celebrated its opening of the Brit- ish International School Yangon earlier this year und oers u currIcuIum in line with the English National Curriculum and is set to open its doors to admissions later this Au- gust. While the school is a newcomer to Yangons expat education market it does not mark a new age of international educa- tion. Rather it signals a resurgence in a city once well known for the quality and calibre of its educa- tion institutions. The International School of Yangon, a school closely associated with the American embassy, has been in Yangon since 1955 but it too has its maximum complement of students. While many of the schools students come from international backgrounds the single largest student body are Myanmar locals closely followed by Americans suggesting strong local demand for a non-gov- ernment education. However, demand has outstripped supply in all of Yangons international schools for many expat families who now face tui- tion costs far above previ- ous years. Stewart Fry, chairman of the British Schools Foundation, at the open- ing of the British Interna- tional School said: Weve recognised that there is an acute shortage of qual- ity international school- ing here. As the need for school places from multi- nationals and diplomatic missions mounts our ini- tial priority has been to open our hrsL cumpus us quickly as possible. The school will ini- tially only take 100-150 students. We are work- ing on a purpose built facility to accommodate 1000-plus students. Fur- ther down the line as the country develops we will look at needs in other cit- ies, he said. The fact the school intends to increase intake 10-times from its initial numbers suggests a strong demand for quality school placements. The British Schools Foundation currently op- erates ten schools, in nine countries over three continents. The arrival of private education institutions sends a pair of signals: hrsL, quuIILy educuLIon InsLILuLIons ure hndIng a place; second, there is a pressing shortage of places for existing and rapidly expanding ex- pat communities and lo- cal demand. The r oad ahead Myanmars economic future depends on its ability to leverage not only its commodities of which there are bountiful, yet largely non-renewa- ble, stocks but also its capacity to improve the skills of the nation. Not simply creating a middle class but rather country-wide improve- ments in all facets of life, from agricultural a sector in which the vast majority of people work to min- ing, manufacturing, ser- vice based sectors and the abstract thinking sphere. In many ways this is the ultimate aim of any de- veloping country, to shift its economic model from one of commodity export, to a value added system, whereby value is created through the leveraging of human capital, knowl- edge, on a commodity or to provide a wealth creat- ing service. Making some- thing into something else for someone else. One such realm Myan- mar might look to im- proving is education of its countless farming fami- lies, not only in improv- ing literacy but also in im- provements to the system and infrastructure of the system. It should also look to reform its dysfunction- al university and skills training sector through a rationalisation of ad- ministration reducing the numbers of minis- tries and departments re- sponsible for some things while also decentralising education away from cen- tral points in Yangon and Mandalay. Investment must be made in producing edu- cation that both meets the needs of Myanmars growing economy and industry growth, but also enriches the countrys ucudemIc oerIngs. WIIIe its all well and good to produce wholly voca- tional courses, designed to train workers to exe- cute certain sophisticated tasks, such programs lack in their ability to build a knowledge bedrock upon which capital of a skilled workforce can be developed. Programs must be designed to teach skills, but place equal importance on building critical thought and crea- tivity. Without a dramatic increase in human capi- tal over the next several years, Myanmars politi- cal and economic reforms will have been for nothing as production and exports will diminish. Increas- ing human capital in all sectors is vital, especially in agriculture, extractive industries, infrastructure development and the ser- vice sector all of which have fallen due to mis- management, underin- vestment, and illicit trade. To improve these sec- tors once again requires concerted action from governmental and non- governmental actors with investment in manage- ment practices with the added foundation of edu- cation of those who now hnd LIemseIves unskIIIed, under employed, or out of work. Education may be hard, especially for those who have very little experi- ence of formalised edu- cation, but there simply comes a time when the hsI ure gone, LIe Lrees have all been cut down and the gem mines run dry. Myanmars bounti- ful commodities risk al- ienating the country and its people from a future in which these are gone if skilled capital build- ing does not begin now it wont be there when the mines are empty, the forests cut down and the rIvers und seu hsIed-ouL. Rather they need to be managed in a sophisticat- ed way which can only be achieved through general education while also providing real, viable, al- ternatives to those who have for so long depended on them. Education is a means to an end, education is a formalised system of improving the human capital of the system but it does not improve a system by virtue of those within it being acquaint- ed with abstract thinking; to build a new country requires more than that. The recent moves by Ja- pan and Australia in com- mitting money to improv- ing teaching in Myanmar suggest an acknowledge- ment of some fundamen- tal issues in Myanmars education system its failure to actually edu- cate. While there are plenty of good teachers there still remains a system- wide issue of education- outcome failures, stu- dents going to school each duy Lo hnd LIuL LIey cun only get ahead by paying more outside the formal- ised system. Without an improvement to teaching there can be no improve- ment to skills. If education creates skIIIs hrsL LIere musL be teachers who teach and pupIIs wIo cun uord Lo learn. But before Myan- mar moves in this direc- tion other moves must be made. Myanmar can make these moves, all it takes is will. Students attend class at a local school on the outskirts of Yangon. U A u n g / X in h u a
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July 24-30, 2014 Myanmar Business Today mmbiztoday.com PROPERTY & REAL ESTATE 23 Myanmar Summary Myanmar Summary France to Help Urbanise Mandalay Kyaw Min F rance will help in the urbanisation process of Myan- mars second largest city Mandalay through infra- structural development assistance. Under an agreement signed between Manda- lay City Development Committee (MCDC) and Frances Ministry of Economy, France will provide assistance in the citys urban development projects such as garbage disposal, transportation services and water supply at a cost of $1.3 million. The Asian Development Bank (ADB) and the Ja- pan International Coop- eration Agency (JICA) have also been providing hnuncIuI ussIsLunce und technical skills for the same projects. Currently, a central business district project called Mingala-Manda- lay is being jointly im- plemented in the city by MCDC, New Star Light and CAD Construction since September 2012. The project includes building underground sewage system up to in- ternational standard. KHGs Launches Luxury Condominium in Myanmar Phyo Thu K HG Development broke ground of its residential luxury condominium following the opening of its sales gallery last month, the Singapore-based con- glomerate said. The development, IN- FINITY, is located on the edge of Golden Valley in Kabar Aye Pagoda road in Yangon. According to KHG, IN- FINITY, a 148-unit prop- erty set on 28 storeys, is seL Lo redehne Iuxury sky living in Yangon. The development boasts an INFINITY Sky Terrace wIIcI Is un enLIre oor dedicated to resident lei- sure facilities. Complete with three pools, a well- equipped gym, childrens play area, an outdoor exercise area, barbecue area and function room LIIs oor Ius 6o-degree views of the cityscape. KHG suys every oor oI- fers panoramas of Shwed- agon Pagoda, Kandawgyi Lake and Inya Lake. TIIs Is LIe hrsL In u se- rIes oI reuI esLuLe oer- ings that KHG Develop- ment is rolling out. Later in the year there will be the launch of a low-rise, luxury boutique-style, development in another prime location, KHG said. KHG Holdings chair- man Kyi Soe said, I have uIwuys IeId hrm Lo LIe philosophy of mutually rewarding experiences for all parties, a fact applica- ble to all KHGs business ventures. Real estate de- velopment of the highest standards is an exciting new chapter in our com- panys history. Mary Thein, KHG De- velopments executive director of sales and mar- keting, outlined the com- panys strategy, saying, Creating and commu- nicating value to all our stakeholders through our quality products, services and brand ambassadors is vital to building long- term customer relation- ships. KHG is investing heavily in this. TIe hrm uIso guve u pres- entation of its property websILe - InhnILy-kIg.com at the launch event. _.,.:.-_..~:- _._. ~._ .. ~..:~ ~~ . :.. . e _e .~ .~~ .q.~~ ~ _. .. . ~~ _ . :.._e . q._ . ....._..~:._..:e: .q..~: .~ . _. .. . .. :..q. ~,_~._:,~._ ....._. - _._....e_e.~.~~.q.~. q. .:.~ .|~ ._ ~. ~ . , .. .e e . ..: .q. ~, ..: . . . , ..:.. .q., qq .q. . . , . .:. ~~ ~ ..:~ .~ . ~ .q. .. _. . e .. . ~ , .~~~ _ . .. . . ~..q ~, ..'.: ~ ... , .,..:~.... .__e._.. _. ~:qe_e..q. ~. ., . ~~:. ...| ...: q ~ .q. .~ . ~ ~._ . e...~,..:.~ ,_.._: ~ . .~ . . q:~ . q. . :. ~~~ .._~..:~...:. _....:.._e .q._. e. . . ~ , .~:. . .:.. ... . . ~ , .e ~._ ...:._. . .. ..._. .~: ._ . .:e: .q..~:.~._ ,e..~:. .~~.~ CAD..:~.. .q.~ . ~ . ~~. . . .~ ~ :.~~_ .~ ~. .|. . ~ , . ~ .~ q, . . :.._ .e . ..~,.~ .~~:~.. ._..~:~ .q. .. , .,. . . ~ , . .:. ..:~..q, .|~._. W M C A rendition of the interior of INFINITY, a high-rise luxury condominium on Kabar Aye Pagoda road in Yangon. 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July 24-30, 2014 Myanmar Business Today mmbiztoday.com 24 Myanmar Summary Myanmar Summary PROPERTY & REAL ESTATE Sydney Set for Biggest Hotel Boom Since Olympics in ooo Nichola Saminather F ourteen years after the last major hotel opened in Sydneys center, 42 developers are competing to turn two 100-year-old government omce buIIdIngs InLo uc- commodations as demand soars. Elsewhere in the city, de- velopers including Chinas Greenland Holding Group Co and Singapore-based M&L Hospitality Trust plan to add more than 5,300 rooms over LIe nexL hve years. If they are completed, the citys supply of rooms will rise by about 20 percent by the end of the decade, the most since Australias larg- est city hosted the Olympics in 2000, according to bro- ker CBRE Group Incs ho- tels division. Hotel construction is picking up as the num- ber of visitors to Australia grows at the fastest pace in at least nine years, sending occupancies in Sydney to a record and the highest in Asia after Hong Kong and Tokyo. Sydneys average hotel occupancy is set to reach 88.8 percent by the end of 2016, the highest since at least 2000, accord- ing to economics advisory hrm DeIoILLe Access Eco- nomics Pty. The hotels are all full, so theres more than enough demand for more rooms, said Michael Kum, chair- man of Singapore-based M&L, which is adding a third tower at its 683-room Four Points by Sheraton, Australias biggest hotel, in Sydney. The new devel- opments planned for the citys centre mean the whole area will be totally transformed, he said. Sydney ranks 15th on a list of the most expensive markets for hotel rooms, according to an index compiled by Bloomberg. With an average room cost of $221 a night, Sydney lagged behind the priciest market, Geneva, at $308, No.2 Dubai and New York in tenth place, at $233 for a stay. Almost 5,000 hotel rooms were added in New South Wales state over the 12 months to Septem- ber 2000, following about 2,300 the previous year, uccordIng Lo hgures Irom the Australian Bureau of Statistics. That pace of growth dropped sharply following the Olympics, with 415 rooms being added over the year to Sep- tember 2001, and more than 1,900 rooms being taken out the following 12 months across the state. While growth across the country turned positive the following year, the pace remained sluggish as the Australian dollars climb to a record $1.1020 in July 2011 weighed on overseas visitor arrivals. On aver- age, less than 700 rooms a year have been added in New South Wales over the decade to June 2013, according to the statistics bureau. L`s been u dImcuIL mur- ket to grow from an opera- tors point of view because there hasnt been much construction and oppor- tunities, said Jones Lang LaSalles Karen Wales. The Australian dollar bought 94 US cents as of last week. Its set to fall to 8q cenLs by LIe hrsL quur- ter of 2015, according to the median of 53 analyst estimates compiled by Bloomberg. As the currency wanes, Australia is looking attrac- tive again. The number of overseas visitors to Syd- ney jumped 6 percent to 2.8 million in 2013 from the previous year, the big- gest increase since 2005, the earliest year of data available from Tourism Research Australia shows. Travelers from China rep- resented the biggest group with 394,718 arrivals, a 13 percent surge from the previous year. Growth in overseas arrivals will aver- age 4.5 percent a year over the next decade, the gov- ernment agency forecasts, revised from an earlier forecast of a 4 percent an- nual increased. The number of Austral- ians visiting Sydney rose 7.2 percent in 2013, the Singupore Jone Home Sules rop 6Spc us Fewer Projects Marketed Pooja Thakur S ingapores home sales fell 68 percent in June as developers mar- keted fewer projects amid cooling demand in Asias second-most expensive housing market following a slew of property measures. Home sales fell to 482 units last month from 1,488 units in May, accord- ing to data released today by the Urban Redevelop- ment Authority. The sales in June were the lowest since March when develop- ers sold 480 units, the data showed. The government began introducing housing mar- ket curbs in 2009 with some of the strictest meas- ures implemented in 2013, including a cap on debt at 60 percent of a borrowers income, higher stamp du- ties on home purchases and an increase in real es- tate taxes. Home prices in the Southeast Asian city slid for a third consecu- tive quarter in the three months to June, the long- esL IosIng sLreuk In hve years, the URA said earlier this month. The new project launch- es were few as developers seem to be monitoring the market, said Donald Han, managing director of Ches- terton Singapore Pte, a real estate consulting company. I dont see too many new launches in July either so we may see another muted month. Among the developers that began sales of their projects was Hong Realty (Private) Ltd, which sold 55 of 100 units marketed at its Coco Palms project in the east of the city-state, according to the URA. RH Tampines Pte started sell- ing its condominium pro- ject with 19 out of 80 units sold, the data showed. Under the current new loan framework, mortgag- es shouldnt push a bor- rowers total debt-servic- ing ratio above 60 percent and those that do will be considered imprudent, the Monetary Authority of Sin- gapore said in June 2013. Mortgage loan growth at 7.6 percent in May was the second-slowest pace since June 2007, data compiled by Bloomberg based on MAS hgures sIowed. Singapore was the most- expensive city to buy a luxury home in Asia after Hong Kong, property bro- ker Knight Frank LLP said in an annual wealth re- port. Bloomberg biggest increase since at least 1999, according to the agency. Bloomberg Tourists take photographs in front of the Sydney Opera House. Hotel construction is picking up as the number of visitors to Australia grows at the fastest pace in at least nine years, sending occupancies in Sydney to a record and the highest in Asia after Hong Kong and Tokyo. J e r e m y
S u / R e u t e r s July 24-30, 2014 Myanmar Business Today mmbiztoday.com AUTOMOBILE 25 Myanmar Summary Myanmar Summary Hyundai Launches Car Leasing Program in Myanmar Phyo Thu S outh Korean auto gi- ant Hyundai said it has started for the hrsL LIme u reusonubIy- priced car leasing pro- gram for its brand new vehicles in Myanmar. Hyundai Motor Myan- mar Showroom, which is LIe omcIuI dIsLrIbuLor oI Hyundai in the Southeast Asian country, started the program this month. The vehicles that could be leased through the program include passen- ger cars such as Sonata (saloon), Azera (sedan), SantaFe (SUV), Elantra (saloon) and i-30 (hatch- back), as well as 12-seater van H1 (starex) which is suitable both for commer- cial and family use and H100 (light truck) which is used locally for com- mercial purposes. Hyundai said the pro- gram will provide vehicles directly imported from SouLI Koreu und oer comprehensive insurance for these cars. There will also be a round-the-clock cus- tomer call center, and the leased vehicles will be given complimentary maintenance service by technicians from the ser- vice center. If the leased vehicles need to be repaired, cour- tesy car service will be ar- ranged during the period of repair for the custom- ers, the automaker said. The lease fees will vary depending on the lease term, and customers can choose the type of vehicle according to their needs. .~: ~ q . e:. . -..: .~: ~:.~. ~ _~ .~.. _e.._ e , . .~ _., .:. ~ , .~ -~:.~...:.~ ..... ~_~.~_e. .~.~._ .... , ._e :.q. .._ ~. ~. ~:. _.. . . :.._ e ._.:_~:. .._. e , . .-~q:.~ _e, . .q. ~e.:..e_e.._ e,.. ..: ~:_ ., .:~.q: ._ .., . ._ ~..|~.~.~:. e. .~~. .~.:.._e .q ._. e.~. ~:..:.:.q.. ._~.~.~ .q.._~ ~..~:..:._e.._ Sonata, Azera, Pick-up ~:..:._e. ._ SantaFe, Elantra .._ ~:..:.~_. ~ .e:~ . .~:. .:._e.._ Van H1 .._ ..:... ...:..q...,..:. ~ ~.._.q,..~:._ ~:..:.~ :.q. .. :.._ e .q._. _. e,..._ ~..| ~:..:.~ ~ q .e:.. . ~ ~ ,~ ~ . . . :. ._ _ e. _ . . ~. .. ~:.. .,. .|~ ._ e . q._ ., .~_. ..: .~: e: .:. :.q..q,~~~ , ,:q .~ . ...'. . ._ Customer Call Center .:.._. e.. .:.._~_. ~.._._.,. . . ....._ . ~:~. . ~ ._. e . ..... :.._ e . q._ . R e u t e r s Authorities Decision Blots out Import Slip Market Htun Htun Minn T he Road Transport Administration De- partment new deci- sion to allow any vehicles older than 20 years to be exchanged has stirred up the local automobile mar- ket, industry insiders and auto dealers say. The department, which is under the Ministry of Rail Transport, changed its previous policy of ex- changing cars in an al- phabetical order (of their licence plates) to allow the return of all the cars that are more than 20 years old, starting from September 1. The vehicle registration plates in Myanmar use Myanmar alphabets and numerals and registra- tions plates are provided in a Myanmar alphabeti- cal order. After the announcement of the change in policy, the trading of import per- mits or slips has grinded to a halt, auto traders say. Price of one such slip was over K10 million ($10,000) even a month ago. A car owner receives an import permit when a ve- hicle exchange takes place and the slip allows the owner to import a new veIIcIe puyIng Iower LurI and registration fee. The trading of import slips started skyrocket- ing as more customers wanted to import cars at a discounted price. However, starting from September 1, registration fees for cars older than 20 years and subject to the exchange program will be reduced by 20 percent, which has resulted in very low demand for import slips. Locally-assembled cars will be allowed to be ex- changed with imported cars worth lower than $15,000, registration fees for which will be reduced by 20 percent, the minis- try said. Vehicles damaged by uccIdenLs, hre or nuLuruI disasters will also be al- lowed to return and they are to be exchanged with imported vehicles that have the same value, while the registration fees will be reduced by 10 per- cent. The government has also reduced the registra- tion fees for taxis by 80 percent and for other ve- hicles by 40 to 60 percent since the introduction of the vehicle exchange pol- icy in 2014. The policy to replace old vehicles was initiated in 19 September 2011. In LIe hrsL pIuse veIIcIes more than 40 years old were replaced, while in the second phase, since 8 November 2011, vehicles between 30 and 40 years old, and in the third phase since 12 January 2012, ve- hicles more than 20 years were replaced. A total of 130,518 vehi- cles have been returned as of January 6, accord- ing to the Ministry of Rail Transport. q:.. ..: .q.~, _~ ._:, ~,.......:.q.,_~:.. ..._:,~ ~:..e:..:.~ ~..._.q:~ .. ~ .~: _~:e:~e:.e:.~:... ~ ~._.,~~..._..~ ._ ~~ ~ _., .: ~:....~ ~ .: ~._.:.~..:..:_e..:. ._~:. _._~.~:....~~ ~~.. .q._. ~ , ... .. ..: .q. , _~:.. ..._:,~.,_e ~:..e:. .:.~ ~~q:.~.~ ~.. ._..,q:. ~,. ~, q~., .._.. .~.~,~~:.~:... ~ ~. . . _. ._ _ e. ._ . .~~:. ~ q~.,.._ ~.....e.~:e:~:... ~ ~. . . _.._ _e. ._~: . ~_.,._~_:.._. ~..q~ ~:..e:.~... ._ .,. .~ . ._ ~:.. ._ ~~, ...~ ~:.e: .:.~ e: . ~ . ~ . ~ q:. . , . ..: ..| .~:~ . . _. . ~_ .:.e: . :.~ ....e q:.. , .. ._.:~ .e q:. . , .~ ..: ..| .~:~ . . ._ .e. ._~_:.~ ~ ~~ ... ~,,~|q. ~ q~.,.._ ~:... ~ . .. ~:.. .~~ ~ e: . ~ . ~ ..~:~ . q, .q.~:._~:. .|q._. .~~:. ~ q~.,.._ ~..._.._ .~~.. ~ .~:q e:~e:.e:..:. ~~ ~ . ~ . ~ .~ ~ q:. . , ...: ..| .~:~ . ._ _ e. ._~:. .~.~,~~:..:. ~~ ~ ~..q ~, ..'.: ~ ..: .. . .~:~ ~:..:. ~.: ~..._._ e: .~.~. ~ q:..,...: ....__e.._~:. .q._. ~_. e: ~ ~ . . ...: .~....:e:.:.. .:~ ..~. q:e ._~: .~ . .. :. ..:e: .:.~. . . ..:~ :.. ~..._._ ~,e._ ..:~:...~.: ~.. ._._.. e:.~.~.~ ~~ q:. . , ...: ...._ _e. ._~: . .q._. ._~_:.~ ~ .:_. ..,:~ e.~:.~... ~:..|.. .. .~ ~ . : ..:~ ~ e . :. ._ . .|.. ...._ e. ~ ~. . , . ~~~ .~: ., q . ._ . ~_. ...e:_.,._ .~.~..:.~ ~~ ... _. ~ . ~ q~ ., . ._ ~ :. e:.:.~ q:.~., Taxi ~_e. ~..q, ...~_e e~ . . .. ._ .~~, . . . ~ , . ' q~.,~ ..:.~:e: ~,~,~ ~ e~...~.. . ._ ~: . q:.. ..: .q. ~,_~._:,. .q._. PeopIe wait with oId cars at a vehicIe exchange ofce in Yangon. W a i L in n
K y a w July 24-30, 2014 Myanmar Business Today mmbiztoday.com 26 Myanmar Summary Myanmar Summary AUTOMOBILE Chinese Consumers Switch Gears from Cash to Credit for Car Buys Samuel Shen and Umesh Desai I n a country where owning a car has long been a symbol of lux- ury and success, around 85 percent of Chinese car buyers still buy cars with cash. But people like Chinese accountant Grace Mi and her peers in their 20s and 30s are changing the car hnuncIng gume und ure the ones catching the at- tention of global carmak- ers looking to boost rev- enue and defend margins in an increasingly com- petitive market. These young people are willing to buy big-ticket items like a car on credit a behaviour unheard of some 15 years ago in Chi- na and have led carmak- ers Lo boosL LIeIr hnunc- ing units in the mainland. The push by automak- ers to steer more people to buy on credit comes as part of their broader eorLs Lo muke up Ior sliding margins on new- car sales in China where more companies are cut- ting prices to entice buy- ers. Other key revenue sources include mainte- nance and repairs, vehicle leasing and sales of acces- sories and parts. Mi, a 27-year-old ac- countant in Beijing, did not have enough cash on hand to outright buy her dream car, a Nissan Sylphy, with a price tag of about 150,000 yuan ($24,200). Instead, she saved enough money for a down payment and took out a loan. I didnt want to take a penny from my retired parents, Mi said, adding that owning a car had be- come increasingly impor- tant for her personal and work life. I didnt have to wait for years to own a car. Mi has been repaying 2,500 yuan, or one-fourth of her monthly wage, since November for her Sylphy. While the loan payments are not small, she says she doesnt feel burdened. Accountants are need- ed everywhere so Im not worried about job secu- rity. I dont think I am en- slaved by the car loan. Movi ng to cr edi t Around 70 percent of car buyers in the United States and other devel- oped countries take out loans, according to a De- loitte report in 2012 and the reason global carmak- ers are trying to seize on LIe rIse In uuLo hnuncIng in China is because the secLor Is IIgIIy prohLubIe. TIe hnuncIng unIL oI Ford Motor Co contrib- uted nearly a quarter of the Deerborn, Michigan- based companys overall prohL IusL yeur wIIIe rIvuI GM saw 12 percent of its prohL come Irom ILs h- nance unit. Chinas car market re- mains primarily a cash market, but it is starting to move to credit, John Lawler, head of Fords operations in China, told Reuters in an interview. Its a demographic and generational phenom- enon. Those people who hnunce curs ure prImurIIy younger buyers. Chinas central bank gave the sector a boost in early June when it cut the umounL oI money uuLo h- nuncIng hrms need Lo seL aside as reserves in a bid to stimulate the economy which is showing signs of slowing. Global carmakers have been IundIng LIeIr hnun- cial units expansion by seIIIng o LIeIr Iouns In the form of asset-backed securities to beef up their operations in China. That frees up money they can use to lend to Chinese consumers. So Iur LIIs yeur, LIe h- nancing units of Ford, BMW, Volkswagen AG, Nissan Motor Co Ltd and Toyota Motor Corp have each issued around 800 million yuan ($128.85 million) of asset-backed securities. Gr owi ng sector , r ela- ti ve low r i sk The countrys automo- bile association forecast LIe uuLo hnuncIng Indus- try to more than double to 525 billion yuan ($84.55 billion) by 2025. In an email to Reuters, GMAC-SAIC Automo- tive Finance Co Ltd, the hnuncIng joInL venLure of General Motors Co in CIInu, suId uuLo hnuncIng will be integral in facili- tating sales in the worlds biggest auto market. Bankers and analysts say the chances of car loan de- faults are limited in China because the country re- quires a large down pay- ment 20 percent for new cars. Consumers here also have a higher savings rate compared with other coun- tries like the United States. It is viewed as a future source of income rather than a source of default and losses, said Patrick Steinemann, co-head of Asia Industrials Invest- ment Banking at Bank of America Merrill Lynch in Hong Kong. Indeed, GMs China chief, MuLL TsIen, suId hnuncIng has proved a steady busi- ness in China. One of the characteris- tics in the Chinese market thats very good for the hnuncIng busIness Is LIuL default rates tend to be very low, he told Reuters in Detroit. So the risks are pretty good in that sense. People tend to pay up, Tsien said. Reuters Nissan Says to Sponsor City Football Group in Five-Year Deal Yoko Kubota N issan Motor Co said it will become a sponsor of City Football Group, whose soccer clubs include Man- chester City, aiming to boost its presence over- seas through sports deals. NIssun guve no hnuncIuI deLuIIs Ior LIe hve-yeur deal with City Football Group, which is owned by Abu Dhabis Sheikh Man- sour and is expanding globally. This innovative part- nership enhances Nis- sans investment in the game of soccer which is a key platform to further strengthen our brand globally, Chief Executive Carlos Ghosn said in a statement. Japans second-biggest car maker also replaced Ford Motor Co as the sponsor of European Champions League soccer in a four-year deal start- ing next month. The City Football Group took control of Austral- ian A-League team Mel- bourne City and plans to launch a new US team, New York City, in 2015. It also bought a stake of around 20 percent in Ni- ssan-backed Yokohama F Marinos in May. Manchester City won the English Premier League in May, their sec- ond league title in the past three seasons. Reuters A customer looks at a car in China. J a s o n
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Ford ~.~- .._~.~, ..:.~..._ .. ,_._ ,e ~._.. ~ Deerborn ~ . ~ - ~_.~....~..,_..|.~ _e_ ._ ..... _. . _. ~ GM ~ . ~ . :._ . ~ . ~ q:. .,.~ ,.-.._~.~,..:. ..,... _.,._qq._.. _e.._. ~, ~ -e ~ ~._ . ~ , . ~..:..~ ~:..q: . ._~.~, ..: . . . , ..:. ~q, ~_e. :.q q._ . ._~...:~ ~ ..:.._.._e ...:..q. ~~~ ~,.~:...._..~_e. ~:.. . , .~_~ . . ..... ._. July 24-30, 2014 Myanmar Business Today mmbiztoday.com IT & TELECOM 27 Myanmar Summary Myanmar Summary Myanmar Experiences Its Very Own Digital Revolution Site allows Myanmar people to start their careers online Kyaw Min A fter almost 50 years under a mili- tary junta, My- anmar transitioned to a civilian-led government in 2011. Since then, My- anmar people have been making exceptional pro- gress on catching up on the technical revolution with rapid speed. Work.com.mm, a ven- ture of Asia Internet Hold- ing, has been pushing that trend forward by enabling Myunmur peopIe Lo hnd jobs online a possibil- ity that was unimaginable only a few years ago. A prioritisation on bringing Myanmar up to technological speed with other countries has enabled those within the country to access the in- ternet, something many have never had before. This new convenience al- lows individuals unparal- leled access to the world- wide web, including Work.com.mm, which al- lows Myanmar companies and individuals to adver- tise and apply for employ- ment opportunities. With more than 4,000 com- puny prohIes, Work.com. mm stands poised to rev- olutionise the way people search for jobs within My- anmar. Work.com.mm says it provides ease of access to Myanmar employers and applicants who have turned to searching for promising online leads. The features of the por- tal allow both sides to post adverts and search for the relevant opportu- nities. Further, categories allow job seekers to nar- row their criteria down by city, industry and job type. There is also a chat and messaging feature, which allows for commu- nication between the vari- ous parties. Jort Statema, country manager of Work.com. mm, said: We connect jobseekers with employ- ers online because we know LIuL hndIng u job or a good candidate is not easy in Myanmar. Seeing that there was a really big need for a job portal and the corre- spondingly high number of job seekers proves that we were correct in 2012 when we saw the poten- tial for such a site. With more than 50,000 regular job seekers and over 80,000 applications completed since 2012, Work.com.mm is already u sIgnIhcunL pIuyer In My- anmars digital sphere. At Work.com.mm we are focused on simply providing high quality people high quality jobs, Statema said. The site is ranked My- anmars 39 th most vis- ited website according to similarweb.com (June 2014), beating the lo- cal LinkedIn. The com- pany says there are over 90,000 visits per month and 600,000 monthly page views. With over 2,000 new job posts monthly, and a national internet pen- etration rate expected to reach over 50 percent in 2015, an upward trajec- tory is all but certain, LIe hrm suys. The increasing econom- ic and political stability in Myanmar has allowed companies to recruit the best and brightest talent from within the coun- try more easily than ever before. The jobs have a great range, from soft- ware engineer to driver to caretaker, and the wide spectrum of opportunities allows the vast majority of jobseekers Lo hnd some- thing suitable. According to the compa- ny, more than 99 percent of both employers and job seekers say that they would use the site again. With Work.com.mm we want to empower the Burmese to make the most of their new free- dom. We believe that eve- ryone should love what they do, and we believe one should never give up or settle for less. There are always new opportunities out there. A new job can be more than a new paycheck, rather, it can be a new career and a new life, Statema said. Payment Solutions to Support Tourism Sector Needs 2C2P eyes enhanced payment options to Myanmar working with Creative Web Studio Wai Linn Kyaw 2 C2P, a Singapore- based payment solu- tions provider, and IocuI T hrm CreuLIve Web Studio will together de- liver new, improved and more integrated payment solutions in Myanmar, (L-R) Aung Phyo, executive director at Creative Web Studio, Pi- yachart Rattanaprasartporn, CEO at 2C2P Thailand Pte Ltd, Zin Min Soe, creative director at Creative Web Studios, Wai Phyo Thu, tech- nical director at Creative Web Studio and Myo Zaw, chief technology ofcer at 2C2P. LIe hrms suId. The combined capabili- LIes oI LIe Lwo hrms wIII deliver enhanced transac- tion and payment infra- structure for online sales, especially in the booming Myanmar travel and tour- ism sector, according to 2C2P. Creative Web Studio will integrate 2C2Ps on- line payment solutions into Myanmar merchants operations, providing secure, internationally- linked payment process- Ing cupubIIILIes, LIe hrm said. Tourists will be able to transact on merchants websites using most in- ternational credit and debit cards, recognised and accepted by 2C2Ps payment gateway. Wai Phyo Thu, founder and technical director of Creative Web Studio said; We are ready to support the tourism boom. Better payment processes and LecInoIogIes wIII benehL merchants and raise in- dustry standards across the board. ReseurcI hrm New Crossroads Asia has forecast tourist arrivals in Myanmar will grow at a Compound Annual Growth Rate (CAGR) of 25 percent from 2013 to 2020. The partnership helps us oer vuIue Lo our purL- ner merchants, who ben- ehL Irom zCzP`s soIuLIons with a faster processing time, a more secure prod- uct and the ability to ac- cept a wider number of credit cards. With the integrated 2C2P payment services, merchants will be able to process online transac- tions easily and quickly, opening up new business opportunities and facili- tating greater ease of pay- ments, 2C2P said. This is an important step towards integrat- ing Myanmar more ex- tensively with the global economy. 2C2P will do its part to modernise the nations payments infra- structure, Aung Kyaw Moe, founder and group CEO of 2C2P, said. Creative Web Studio is one of the leading online solutions providers in Myanmar. For example, they work with the vast majority of tourism sec- tor businesses. With their expertise, relationships and technical capabili- ties, they are the perfect partner to integrate our payment solutions into merchants websites, he added. Southeast Asia is ex- periencing an exciting period of transformation in the payments sector. Consumers are increas- ingly adopting alternative payment options when paying for goods and ser- vices. 2C2P said it processed over $500 million worth of online payments in 2013. .~:.~._..~....... ._eq.,_.... _e_._.... . 2C2P . _._~. IT ..,. Creative Web Studio ~....|._ ~._.~: ._ ..| .._ ..|~ ..: . ...... .,....:.~ _.,.:.~ ~_ .: ._ _ e. ._ ~: . 2C2P ~ .._. ~.~.....|. .....: ~:._e ~,...q:....:. . ~.._e _.,.:..q. . :..:.q.~_~~ ~ . ......._.:...:.~ _.,., ..:....._ ~._.~ :...: ~._....:.:.~ e,~..:.._e .q._. Creative Web Studio ._ 2C2P - ~,.........,. ~ _ .,.:~,.e.q...,. .:.~ ..|._...~: ._._ .~~:. .~.~ :...: ........,..:. ~ .......__e.._. A screenshot of job site work.com.mm. M B T ....|. ~ ,..|. ..~..q .~.~:~~q.,._.. ~~~ ...~ ~q..:.~..q~~ .:_...,..__.,.:_._..:. ._ ,_ .._:.~: . , .q.~:. ._.,..:~e,_e ~_. ee~~.~~:~ .~. .~:_~..:...._. Asia Internet Holding - ..,.._e...: Work.com. mm ._._. ~q ,~e, ~ ~ , .~:.....~ q ~: _., .: _._ . .:.~~ ~ . , . ._ . . ~,_.e~ .~..~... ..: ~,... ~..q:_.. ~, ..: . ~ _e_ ._ .....~ q._. _.,.:.-,_.._:~e, ~ ~_.:...:.. ~..:. ~_.q..q, ~.~..:.... ..: q ~ . _. .._~: ~ ._._ ~ ~ ~:,~ . .. . ~e _., .:_ . . _~ . ~~ . ._ ~: _._.~.....: Work. com.mm~.|~~ ~ ~:,~ ~,q~. ~e_.,.: ~ .q:~..:_.. ~.~.:.. ~......:.~~~ ~.. ~~~.~....:. ._ ~_: _.. ..:~:._...:. _... ..:_~._. July 24-30, 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 2 3 4 5 6 7 RGN SIN 19:05 23:40 TigerAir TR2826 1 2 3 4 5 6 7 SIN RGN 17:05 18:25 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 Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: 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 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 Mann Yadanarpon Airlines July 24-30, 2014 Myanmar Business Today mmbiztoday.com IT & TELECOM 29 Myanmar Summary Myanmar Summary Myanmar Summary Taiwan, Myanmar Sign Deal on Tech Cooperation Aung Phyo T aiwan and Myanmar signed an agreement on cooperation in LIe heId oI InIormuLIon and communications tech- nology. The deal is expected to allow the two countries to have more interaction in sectors such as IT train- ing, enterprise knowledge sharing, language learning, enterprise cooperation, marketing and business opportunity development, according to the Taipei Computer Association, which signed the deal with the Union of Myanmar Federation of Chambers of Commerce and Indus- try and second-stage APEC Digital Opportunity Center project (ADOC 2.0). To promote ICT ex- changes between the two countries, a Taiwan-My- unmur excIunge om ce Ius been established to pro- mote cooperation projects by working with ADOC and UMFCCI, the Taipei Com- puter Association said. Vice president of the Un- ion of Myanmar Federa- tion of Chambers of Com- merce U Zaw Min Win told Taiwanese media that My- anmar is providing many subsidies and incentives and has invited Taiwan IT players to invest in the country. Taiwans Acer has donated 80 personal computers with the aim of giving a boost to ICT industry exchanges be- tween the two countries and helping upgrade Myanmars digital technology as it ex- plores opportunities in the country. LG Toots "Redening the Concept of Smart and Simple Aung Phyo S outh Korean IT gi- ant LG Electronics cIuImed Lo redehne LIe dehnILIon oI u gIobuI smartphone for Myanmar customers at the launch event of LG G3 smart- phone the successor to its LG G2 in Yangon. LG G3, developed under LIe hrm`s SImpIe Is LIe New Smart concept, was touted as empowered with the best of what current LecInoIogy Ius Lo oer, and promised to provide consumers with a user ex- perience more ambitious LIun unyLIIng oered be- fore by LG. The smartest innova- tion in a fast evolving smartphone market is cre- ating harmony between advanced technology and u sImpIIhed user experI- ence, said Min Park, man- aging director of the LG Electronics Myanmar. LG G3 is the result of our eorL Lo ucLuuIIse LIuL idea into a tangible prod- uct. And we are extremely pleased with the result. - 5.5-inch Quad HD display with 538ppi with four times the resolution of HD and almost two times higher resolution than a Full HD display - 13MP OIS+ (Optical Image Stabilizer Plus) camera with a Laser Auto Focus that can shoot sharp images - PoIIsIed meLuIIIc skIn on LIe reur cover LIuL Is IIgILweIgIL und hngerprInL-prooI - Floating Arc form factor and Rear Key - Redesigned graphic user interface (GUI) - Chipset: Qualcomm Snapdragon 801 (up to 2.5GHz Quad-Core) - Display: 5.5-inch Quad HD IPS (2560 x 1440, 538ppi) - Memory: 16/32MB eMMC ROM / 2/3GB DDR3 RAM / microSD slot (128GB max) - Camera: Rear 13.0MP with OIS+ and Laser Auto Focus / Front 2.1MP - Battery: 3,000mAh (removable) - Operating System: Android 4.4.2 KitKat - Size: 146.3 x 74.6 x 8.9mm - Weight: 149g - Network: 4G / LTE / HSPA+ 21 Mbps (3G) - Connectivity: Wi-Fi 802.11 a/b/g/n/ac, Bluetooth Smart Ready (Apt-X), NFC, SlimPort, A-GPS/Glonass, USB 2.0 - Color: Metallic Black, Silk White, Shine Gold, Moon Violet, Burgundy Red - Other: Smart Keyboard, Smart Notice, Knock CodeTM , Guest Mode, etc. Highlights Key Specifcations Ooredoo and Khan Academy Announce Myanmars First Translate-a-thon Event expected to make a big range of educational material available in Myanmar Kyaw Min O oredoo Myanmar announced that it has teamed up with the Khan Academy Myan- mar to help make the lat- ters wealth of educational material available across Myanmar. The Khan Academy My- unmur Is u noL-Ior-prohL organisation that aims to change education for the better by harnessing tech- nology to make a world- class education available free to anyone. An extensive library of education resources, in- cluding interactive chal- lenges, assessments and videos are available for students, coaches, parents and teachers. Ooredoo said with its 3G network, the potential exists for millions of new internet users to leverage the comprehensive sylla- bus of the Khan Academy to access further education across the country. The free library of educa- tional resources includes 6,000 videos covering sub- jects such as: maths, sci- ences, economIcs, hnunce and history. The videos currently receive 10 mil- lion views every month from students around the world. However, one challenge that needs to be overcome to support this initiative is the translation of large volumes of the Khan Acad- emys content into Myan- mar language. The team behind Oore- doos IdeaBox initiative has set about overcoming this through the announce- menL oI Myunmur`s hrsL ever translate-athon, to be IeId uL Ooredoo`s om ces in MICT Park on August 9. The event will call upon bi-lingual volunteers from all walks of life to come to- gether and volunteer their Saturday in order to trans- late as many Khan Acad- emy videos into Myanmar language as possible. We believe our services can help enable human growLI LIrougI uordubIe and easy mobile access, and this includes increas- ing access to education for all across the country, an Ooredoo spokeswoman said. By collaborating and coming together, our vol- unteers have the power Lo posILIveIy Inuence so many lives, she added. Those willing to volun- teer for the project were asked by Ooredoo to sub- mit a short video transla- tion to www.translatea- thonmyanmar.org. The event is being organ- ised as a competition with a number of prizes being oered by Ooredoo. Ooredoo, with its new network, aims to bring access to educational resources to Myanmar people. ~.. _.,.:.~._ .~ .~. ~ ~.~ . ,_ . ._:~_~ ....|...: q ~ _ ~q, ..:~ _ . ~ ~..~ .~.~.q...~ ._~:. .q._. ..:~ _ .~ ~q. . . ~.,_e ,_.._:..~_.. . . , .~. ~_. -e . ~..~ _.. :.:.~:..e_.. ..,.....|...:q~_.. ...~ ~ ~ _. .. . .. :..q. ~. ~.. . _. ~ _ . . ~ ..: q ~ . ._ _ e. ._ ~: . _., .:. ~ , ._ _~ ..:.. .~ . .~ . . . , . q .:. ~..... .~.~.q... ..: ~..~,.~:~... ._.:_~:.._. .~:~q.e:.-q:. IT ..,._~. LG ._ ,.~- LG 3 ..~e,..~.~.~ _.,.:.. ~e..:.~~~ .~~:..~e,.-~..:e ~ ._.: .. e . _.._ e _~ .~|. :.._~:. .q._. ,.q._..._ ..~~_.. ..~.._e.._''e..:~e ~._e e,~.:...: LG G3._ .~q .,:~....' ,_.._:.:.. ~.~:... .:.~_e ~:._e_:.._~:.'' .q._. _ ., .:. ~. ~ . .. .~ ._:.q...~.~._ .. .~e.~~:,~~,..: . . :. ..'..| ~ .:...q. ~~~ Ooredoo Myanmar . Khan Academy ~._ ....|...:q~._e.._~:. .q._. 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M y a n m a r R e u t e r s July 24-30, 2014 Myanmar Business Today mmbiztoday.com SOCIAL SCENES 30 Coca-Cola's Celebration of the 2014 FIFA World Cup Waso Robe donation ceremony of Ooredoo Ooredoo delegates make a libation at the event. Ooredoo Audience listen to religious sermon. Ooredoo Audience at the event. Ooredoo People participate in the event. Coca-Cola Winners at the game program. Coca-Cola Winners at the game program. Coca-Cola Winners at the game program. Coca-Cola Participant at the game program. Coca-Cola Singer performs at the event. Coca-Cola Telenor Myanmar 5 th Net Monday @ Dagon University Guest speakers at the event. Telenor A student asks a question at the event. Telenor Peter Furberg, ceo of Telenor Myanmar, answers a question. Telenor Peter Furberg gives a present to Dr Hla Htay, Dagon Uni- versity Rector. Telenor Ko Zaw Tet Aung, local Wikipedia representative, re- ceives a present. Telenor Net Monday session. Telenor July 24-30, 2014 Myanmar Business Today mmbiztoday.com ENTERTAINMENT 31 Inle Lake: The Predictable and The Unknown T o one such as me, from a place such as Australia, any body of water bigger than the local swimming pool requires as much attention as I can muster. Lakes, rivers, streams all remind me of something distinctly lacking in the Australian experience of bit-wet-things. While its true to say that Australia is one of the driest places in the world, its also fair to say that parts of the country do not qualify for that title, particularly at certain parts of the year. But not the great south of the great south- ern land, the place where there are rules specifying what day of the week, and at what time, you were allowed to water your garden. So its no surprise to me that Inle Lake and the land around it are simply staggering for the sense of breadth, depth and verticality of it all. Its big, its really big and its really wet. The very size of the place is enough to drive a man to drink. Unlike Bagan, Inles place to be Is conhned uImosL soIeIy Lo Nyuang Shwe, although there are a couple of other places one could go. Sitting at one end of the lake, between each side of the moun- tains at the end of a canal, Nyaung Shwe, once outside of the tourist main drags seems mucI more IIke u sIeepy hsI- ing freight town than it does the backpacker go-to point for anyone looking to check out the lake. If you go to Inle Lake youre going to see the lake; that much is certain. Its more a question of what to do, when, where and how. The simple questions of life. Guest houses, hotels high and low end and resorts are all available to the discerning traveller. However, I might suggest that if you go for stay- ing at a hotel on the lake you David Ross D a v id
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R o s s lock yourself out of the experi- ence of being near a lake but not on a lake and therefore able to go places and do things. Nyaung Shwes full of in- teresting surprises, not all of which are for the tourist in you; like the roller rink fre- quented by some of the locals with bright lights and spinning wheels. A boat trip on the lake involves the predictable, the unpredictable and the wholly unknown. Certain points on the boat trip bring to mind the phrase exit through the gift shop, but rest assured, no one forces you to buy anything and that you are the one who is in control. They take you to the weaver they expect you to buy a scarf, they take you to the black- smith they expect you to buy a bell, they take you to the boat shopthey expect you to buy a boat? Well, look at a boat, and buy a model of a boat. Same story with the cigar shop or the silversmith. Not that you have to buy any- thing, you could do as we did, sit and drink tea and watch the locals play a game of carrom something which Id never seen before but bears a remarkable resemblance to billiards. They take you to the predict- able places like the Jumping Cat Monastery; only thing about this place is the startling lack of cats, jumping or other- wise. Rather, they seemed to be sitting, sleeping or in a general state of doing not much, not now. Then theres the rotating market, round and round it goes, between the towns or on the lake, you can ignore the people selling the trinkets and concentrate on stoop- ing over as you tower above everyone doing their morning shopping. There are interest- ing things, but most of its the same old unless youre doing your weekly shop theres not so much a need for buying. However, In Dein, a rather unknown and unheard of spot, was the highlight of the trip. This one takes a bit of wrangling as most of the boat guys wont want to take you because its hard. Maybe theyll try and charge extra for it but so long as your wrangling of prices is good, and youve already got them down in price, an extra K1000 is worth the expense. Its only $1 after all. Sometimes the journey is more important than the destination, sometimes at the destination a journey awaits. At In Dein the journey is as much an experience as is the destina- tion itself. They take you up one of the canals (there are two), up a se- ries of what might be described as levies or weirs built from what seemed to be sandbags and bamboo, defying modern expectations of whatll keep the water in check. Between each weir and for the purposes of this lets call them that a small V-shaped gate narrow enough for one boat at a time, and only the thin V-shaped things they drive on the lake. Gun the engine and go, up, over and down. Ready for the next one. Take the twisting bends of the canal and eventually youre in In Dein. Not that there are any signs, eventually you just come to the dock conveniently placed next to some stalls selling more of the same. Cross another canal on a bridge, walk through town, past the market and over another bridge. There youll start seeing the signs of In Deins drawcard, the hundreds of stupas that sit quite passively everywhere in and outside of town. Some just seem to be in the backyard of houses, while others sit quite forgotten on hills and outcrop- pings out the back of town. If youre game enough to walk the walk under the roof that covers your path up the hill you cun hnd yourseII uL LIe SIwe Indein Pagoda, something akin to the heart of the stupa build- ing space that is the town. From there you can have some stunning views down the hill, of the generations upon generations of tumbledown brick spires slowly sliding towards the lake; while on the other side youll get a stunning view of the hills and mountains out of the back of town. If you were to take just a little bit more of a walk, once youre at the bottom of the hill you cun hnd u seL oI someLIIng that might qualify as stairs, so long as youre not judging by a strict criteria. At the top of those stairs, on something akin Lo u coIumn oI eurLI you`II hnd stupa, one young and the rest very old and an incredible view of the Shwe Indein and the rest of the town around you. Not that anyone would point you in the right direction, its in your hands. The journey is always in your hands. Five golden Buddha statues, each covered with layers of gold leaf, at Phaung Daw Oo Pagoda. Inle Lake's Indein Pagoda, where hundreds of ancient ancient stupas stand surrounded by forest. July 24-30, 2014 Myanmar Business Today mmbiztoday.com 32