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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. 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. 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. 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 August 7-13, 2014| Vol 2, Issue 31 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL Myanmar Summary Contd. P 8... Contd. P 8... Inside MBT Govt to Set up More Industrial Parks to Curb Price Manipulation T he authorities are to develop seven new industrial parks as part of the process to re- strict price manipulation of industrial lands which are not being used to op- erate industries, a minis- Htun Htun Minn ter said. The prices of land in major investment areas keep increasing so we are planning to set up seven new zones to increase supply, U Thein Aung, deputy union minister for industry, said. The minister said a vast amount of indus- trial lands are left empty as owners are hoarding them in the hope of mak- Ing bIgger prohLs. Even if we develop new industrial zones, it would be benehcIuI onIy II we ensure the land is deliv- ered to people who are actually going to build factories and this could in turn provide jobs and re- duce poverty. If the existing lands for industries are held to be sold later at a greater prohL, LIen LIe IndusLrIuI parks would fail, he said. There are 18 major in- dustrial parks in Myan- mar with many land plots of those zones sold to industrialists still being un-utilised. State and re- gional governments and industrial zone manage- ment and inspection com- mittee are coordinating to collect data to prepare Iund IIsLs, om cIuIs suId. Rules and regulations should be set out to pro- mote transparency in this issue and to reclaim the land plots and sell them again to business- people who actually want to build or expand small and medium enterprises with fair price, U Maung Muang Oo, secretary of Mandalay industrial zone management committee, told Myanmar Business Today. Some states and regions have seen in the past lands designated to be developed as industrial zones being misused through actions such as buying them quick- ly and build fences around them without operating on them. There are more than 3,000 land plots in in- dustrial parks in Yangon which have not been uti- lised, according to real es- tate agents. The current prices of in- dustrial park lands have increased exponentially compared to when they were hrsL beIng soId. TIe current price range has landed between K500 million and 1 billion per acre compared with tens of millions when the gov- ernment started estab- lishing those zones. The plan can see reduc- tions of land price in Yan- gon. New zones will be developed mostly in the states and regions. The most important thing is to deliver those lands to the ones actually utilis- ing them, U Myat Thin Aung, chairman of Hlaing .~.~,.:.~ ._.e:.:. ~:. ..,.._... ._.... ~.:._. ._.. . .,. .:.~ ..: ,_ ...q, .~ . ~ , . ,. . . . ~..q, ....:q~.,._ e .~ . ~,_~ ._:, _ ._ .: . . ~ e~, _~ . .. , ..~: ~ ._.:._.e.~_..:~._ .~.~,.:.._ _~ ._. .,..: .~ . ~ , ._ ... .~ ~ ~ ..: _~q,q_qe._ ~:..~e~, _~ .~ ._.:._. . . ~. . , ..~ e _ e . ~.~~e.q ,.|~~.~., , ._..,q:qq e . .|~e ..,:~ ~. . ~ q .. .. . ~. .|~e . ._ ., .~ .~ _ . ..~: ~. ~ q..._...~.,q:.: ._.... .~ _.~~.,. .~.~,.~ . ,. . ~ .. e . . .,.|~e . ._..~.: .~, ~..,.~ ~_..:~~.._..,~:.~ q .. .. . ._.. ~ .~ ._ . q.,.|~e .. . .e: ~ .q:.. .e._.,q._. ~~e.. .e ..,.q.~q .~ .q:~..: .~,.~ ..',. .:.:_e._...~: ~..~~ Labourers work at a garment factory in an industrial zone in Yangon. The authorities are going to set up seven new industrial parks in a bid to quell rising prices of industrial land in the country. Ministry to Allow Casinos in Border Areas P-3 Mogok, Mai Shu Treasures Lands Go Up for Auction P-5 Bankers Urge Govt to Set Up Credit Bureaus P-7 August 7-13, 2014 Myanmar Business Today mmbiztoday.com 2 LOCAL BIZ 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 & International Editors Gordon Wong, Kwan Yuk Sing, Logan Linnane 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, Jacob Goldberg, Gordon Wong, Kwan Yuk Sing, Logan Linnane 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 Business News in Brief All Asi a Asset Capi tal says Myanmar agree- ment close to appr oval All Asia Asset Capital Ltd said the signing of the power plant agreement between APU, the Myanmar and Thai- Iund-Iocused power generuLIon hrm In wIIcI AII AsIu Capital recently increased its stake, and the Myanmar governmenL Ius now been pussed on Ior hnuI upprovuI. All Asia Capital said the agreement had been subject to minor delays of a technical nature, but that the Myan- mar government has now passed it to the economic de- partment. All Asia Capitals agreement to acquire a 4.5 percent stake in APU is dependent on the power plant agreement being signed. Myanmar -Laos br i dge to boost r egi onal tr ade TIe hrsL Myunmur-uos BrIdge, connecLIng TucIIIeIk and Luang Namtha, will be completed next year and is expected to boost the economies on both sides of the Mekong. The Thai-Myanmar Cultural and Economic Cooperation Association and the Chiangsaen Interna- tional Institute for Skill Development recently surveyed the progress of the $26-million bridge. Phakaimas Weerra, Pakaimas Vierra, president of the association, told Thai media that the bridge would enhance the live- lihoods of communities on both sides, and would im- prove transport from Chiang Saen district in Chiang Rai province and Jinghong city in the far south of Chinas Yunnan province. The two-lane Myanmar-Laos Bridge will span 691 metres and be able to support up to 75 tonnes. Myanmar health and i nfor mati on mi ni ster s step down Myanmars ministers for information and health have resigned, state media reported last week, the lat- est changes in a cabinet that has been grappling with a host of problems as the country presses on with reforms after decades of military rule. The New Light of Myan- mar newspaper reported that President Thein Sein had allowed Information Minister Aung Kyi and Health Minister Pe Thet Khin to step down of their own voli- tion. No reason was given for the resignations but the work of both of their ministries has been in the public spotlight in recent months. Several times in the past, ministers who were reported as having stepped down of their own volition were later found to have been forced out of the cabinet. Myanmar makes $2.9 mi lli on her oi n bust i n Golden Tr i angle The authorities have seized 140 kilograms of heroin packed into blocks and hidden in a car in the notorious Golden Triangle area near the Thai border, police said last week. Two men were arrested in the border town of Tachileik in eastern Shan State during the bust, which netted drugs with a street value of $2.3 million, police told AFP. Opium, heroin and methamphetamine pills are frequently smuggled from Myanmar into Thailand, the gateway to the Southeast Asian narcotics market. TIe UnILed NuLIons Om ce on Drugs und CrIme (UNO- DC) says 10 per cent of the worlds opium is produced in Myanmar, making it the second largest producer of the drug the base ingredient for heroin after Af- ghanistan. S Kor ea to loan $500 mi lli on for Myanmar s economi c development South Korea is helping Myanmar in its economic de- velopment by extending economic development coop- eration fund (EDCF) to the country for implementing development projects. According to a framework agree- ment signed recently between the two countries, South Korea will disburse $500 million in loan to Myanmar with low interest rate. The deal aims to carry out pro- jecLs In eIecLrIhcuLIon, communIcuLIon und LrunsporLu- tion sectors. In June, Myanmar and South Korea signed an agreement on bilateral investment promotion and protection during Korean Foreign Minister Yun Byung- ses visit to Myanmar. Myanmar Summary All Asia Asset Capital Ltd ._ _.,.:.~ .....:~ ~:.....~,~_..:~q,..:~_.~qq .._e ._~_: .._. _.,.:..:~.~~ .....~.e...._~~:. ~. . ~ ~_ ..:~ . :.q, . . .,_. . ~. .|~ ~:.._ ~:. . ~ _.. .:~. ..,:.,.._.~~ .~.e....__e._.. .:._..~ ~_...~~_..:~._e .q._. ~..| ~~:.._~: _.,.:..:~...-..,.~.:. .._.~~ .:. . ._ e _., .: .e .~.. . . .. :..q.. ...| ...: q ~ . ~..~_~ ._.:.._. ~..|~~:.._ ......:.~~:. ~..~.:._e._.. '~ .~:q_.:.~: ..~,.: ~,_e. ._. _., _~:..q.. ~, ..:.q.~, _~ ._:,. . .~ ._ q: .. . ~ ~ .._e ~..q...e:.:.~ ._~_:._.. New Light of Myanmar .~..:-~.~q ~..|~,_~....._ q:.. ,.~.~..~..:~.~~._.._e.._e ._~_:.._. _.,.:~:~:..:.._ .q_~...~ ~:.~...~~._ ~~:.._ ,._e ~,~ ~.q..,~ e......._e .q _.. ~..|,._e.:.._ ...~~..|~... ..'.: ... , .,.~,e.q._e .q._. ~q.e:..._ _.,.:.-...:..q.e_e.~.~~.~~~ .... ~..q~,..'.: .,. ~~ ...~..:.._e .q._. ..:~_.~q ~q.e:.._ ~..|....~:. ~~..,.,_. .:_e...~..:..__e._.. .....:~~:.qq.q. .~.e.q. ..ee...:.q.~_.:.~ ~.._..:.._e .q._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com 3 LOCAL BIZ Myanmar Summary Ministry to Allow Casinos in Border Areas T hree-star hotels in border areas will be allowed to open casinos, according to the Ministry of Hotel and Tourism (MoHT). Only foreigners will be allowed to gamble in those casinos while locals will be banned from tak- ing part, the ministry said, adding that the hotels let- ting locals play would be dealt with in accordance with the regulations. Only hotels in border areas will be allowed to run casinos because the main goal is to increase foreign cash intake, said U Sai Kyaw Ohn, deputy minister of the Ministry of Hotel and Tourism. The ministry is work- ing with the Ministry of Home AuIrs (MoHA) Lo adapt and revise both the Hotel and Tourism Law and the Gambling Law to legalise such operations. Both laws are expected to be amended before the end of this year, according to MoHT. Htun Htun Minn Myanmars bustling border areas, which have more than 100 hotels, Iuve seen un Inux oI foreign tourists in recent years, generating demand Ior om cIuI cusInos. AL u later stage, hotels in oth- er states and regions will also be allowed to open casinos, the ministry said. Casinos are being set up in cities where under- ground gambling opera- tions masquerade as ar- cade game centres, where under-the-counter ex- change of game coins for cash thrives. Such centres are required to secure permits from relevant au- thorities and city develop- ment committees before opening, and can be pros- ecuted if gambling is part of their operations. Hotels around the world have opened casi- nos. But this needs to be strictly regulated because this is large-scale gam- bling, said U Than Shwe, vice chair of Myanmar Hoteliers Association. _., .:. q . ~~:~. . _~e . .. ~. e ~e _~ ..:. ~ . _.:..:..:..:~.:.. q, ~:..~.:.~..:. e.. . _.q,. . .~ q ._~: .e ~e . .q.. :..:.q.. . , .~, _~ . _:,. .q._. e.~ . . _....q:~ . _.:..:..:.~ .:~.:.. _.._ _e._.. ..:..:.~. ~.:. ._.._.e~ ~.:.._. ._ e ~e ~:. ~.q.e ..: q ~ . :.._ _e. ._~:.._. . q _.. ~..|~:..~.:.~..:. ~ ,e .. ....:.q e ~e .:. ~ e..q, ..:.._~:. .q._. ~:. . ~ ..~ ~ ,e .. e ~e .~ . :. e . _.e . . :.~e . ~. ~. _.:.~ . . _. .qq .:e ~~ ~ .|''e e ~e . .q .. :. .:.q.. . , .~, _~ ._:,. . ~ e ~,_~. ....~:~,.~ ._.: ._. _._ .q.~, _~ ._:,. e ~e . .q.. :..:.q.. . , .~, _~ . _:, ....|.~: ~:..~.:. ~..:. e..._.q, e~e . .q .. :..:.q....~ . . _e_.~.~q_.. .~.~:. ~_..:..__e.._~:. .q ._ . ~_. ~:. . ~ ..:. e...q,~~~ _._.q. ~, _ ~ ._:,- ~..: .~.:. ...~ .| _. . .~ q _. . e . ....:.. :._ . e. . . ~~ . .q.. _. .... q, . . :.._~: . e ~e . .q .. :..:.q.. . , . ~,_~._:,. .q._. .~~:.:._. e~e .~ . :~:. . ~ ..~ q ~:. ... .|... .....:.:,...e .~: . ~e .:_e. . . . .~: .|._~._~ .~ ~..: .~.:._e. . . e e ~e . . , .q .:. ~... .~e~_ ..,..q ~ ._.:._._.,.:.,e.. ....:.~ e ~e ~. ...| . ~. q:.~: ~_ q ._ . e . ,e......:.._ ._.:. .q .. :.~ .q:~ . . . . ~ .~~ .~ q..:._~: ~. .|e ~e .:.~ ~q:.~~:..~..:. e..._....q, .._.._e. ._~:. .q._. .,:~.~.~_ ,e.. e~e.:..:.~ _._,e. ~...._~..:.q e~e.:. ~.| e..._..q, .. .~ q._~: .._. . q._ . _.,.:.~..,q:.:.~ ~:. . ~ ..:.~ Network game . ~_e. e . . :... q _. . .q~.:...: ._.:..:. .:._e.._.~..|....:. e . . q, .~ . q:q .., .. ~.q~.e,.. ~:~,q..:. ~ _..~:._.. ._..~ _e e . . . _. . . ._~...: . ~.:. .|~.:.|~ ~_~:. .._~:. .q._. R e u t e r s August 7-13, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 4 Myanmar Summary JFE Engineerings Myanmar Steel Plant Makes First Shipment J FE Engineerings Myanmar joint ven- ture has launched its new plant in the country by sIIppIng ILs hrsL brIdge block fabricated there, the Japanese steel giant said. JFE Engineering and the Ministry of Construc- tion established J&M Steel Solutions Co Ltd, a JV company for infra- structure construction, in November last year, and began construction of a plant in December that fabricates steel structures such as bridges in Tha- keta township in Yangon. The main facilities of the new 16-acre plant started operating in April Aung Phyo and J&M announced con- struction of all facilities has been completed. The bridge block of this hrsL sIIpmenL Is purL oI a 200-tonne truss bridge for one of Myanmars neighbouring countries, Laos. The plant is going to continue fabricating more blocks and is due to com- plete shipping them by August, JFE said. The steelmaker said since the establishment of the company, J&M Steel has received orders from the ministry for steel bridge design, fabrication and construction-plan- ning regarding bridges such as the Than Lwin Bridge to be constructed in Kayah state in eastern Myanmar and the Htee Gyaint Bridge across the Ayearwaddy river in Sa- gaing region. In addition to these orders, JFE Engineer- ing subcontracts the fab- rication work which it receives from countries other than Myanmar to J&M Steel Solutions. The companys order backlog now amounts to as much as 7,000 tonnes, it said. Development of trans- portation infrastructure, such as roads and rail- ways, as well as logistics infrastructure, including port terminals are seen as vital to sustain Myan- mars recent economic growth. J&M Steel Solutions said it is committed to contributing to the coun- trys domestic fabrication ratio which the coun- try strives to increase, while developing itself by introducing Japanese advanced technologi- cal skills from JFE Engi- neerIng In sucI heIds us harbour and coastal piers and container cranes. JFE said it aims to lever- age J&M Steel Solutions as the mother plant for infrastructure projects in regions including South- east Asian countries, the Middle East and Africa In ILs eorL Lo expund ILs overseas business. TIe hrm suId IL Is uIso InLeresLed In oerIng ILs engineering expertise to the environmental and energy heIds oI Myunmur. In addition to the Jap- anese supervisors dis- patched from JFE Engi- neering, those who have been accepted at its Tsu Works as trainees to learn welding skills since 2002 (about 30) will join J&M Steel to introduce Japa- nese LecInoIogy, LIe hrm said. JFE Holdings, the par- ent company of JFE En- gineering, was formed in 2002 by the merger of NKK and Kawasaki Steel Corp. At the time, NKK Corporation was Japans second largest steelmaker and Kawasaki Steel was the third largest steel- maker. JFE Holdings main business is steel produc- tion. It also engages in en- gineering, ship building, and real estate redevelop- ment. JFE Holdings is the hILI IurgesL sLeeI muker In the world with revenue in excess of $30 billion. R e u t e r s ]FE`s rst shipment on the truck. J F E J FE Engineering - _.,.:.~ ~~.~e~.. ..,...,_ _.,.:.~.q .~ , .. _~ .~ e . . ~: e . .~ , ~ ~ . . ..:.. . . ~ ~:. ~. ~ ~. . ~ ~..~._~:. .,-q:. .~ .. . , ._ ~ .~ ._ .:_ ~:. ._ . J FE Engineering . _ ., .:. ..:~ . . .q. ~,_~._:,~._ J &M .~. . . ,. ~ ~~ .~ . .~ ~_ .:._.. ~._..~..:~ ~ .~_ ..:~ .q.. . , ..:. ..:q~.__e.~: ~~:. ~. ~ ~. .. :.~ . .~ . ~.~~...:.~....: .~,~ .~:.~ .~ ..:~...._~:. .q._. ~' -~ ~e~,...: .~, - ~.~~.~~...: -_.. ~ .~._.~._.. .~, ~....~_..:~..: _.... .:._._e.._~:. J &M ~ ~_.,:.._. ... . ~ . . ~ ..: ~~:.~.~~...: _.,.: ~.,... .:~q ~, ~~ q ..:.:~ ~ ~ ~:.~~ ~ _e.~: .~,..,_ ~_.:. ~. ~ ~. . . :. .~ .~ ~ . . . :.._ _e. _. . _. ~ . ~~.~ ~:...~.. .__e.._~:. ,.~~ . ._. ~ . ~ .~ .: . , . ._ J &M ._ ~..q. ~e:._._,eq ..~~:. . .. ~ .~ .~~ . -q:~~ _....'~_..:~._ .. ~ ~:..._ . . ~ , ..:.~~ ~ ~~:..~.._.. ~.. _. .. ..:~ . . _. .. q: ~.:.:. .~.qq.,._~:. .q._. ~.:.:.~_. J FE~.~ _~.~ _._...:..q..: ~,,~.:.~ J &M .. ~, , ~ . :. . :.... ._~:.._..q._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 5 Myanmar Summary Mogok, Mai Shu Treasures Lands Go Up for Auction G em mining plots from Mogoke in Mandalay and Mai Shu in Chin state, dubbed as the treasure lands by locals due to its enormous reserve of rubies, sap- phires and other precious gems, went up for auction Phyo Thu on July 28. The auction, for both new and expired plots, will go on until August 27, according to the supervi- sory work committee for gem plots. A large proportion of mining licence in the re- gion will expire within LIe nexL hve monLIs und companies wanting to ac- quire or renew a mining licence can purchase an application form for K1 million ($1,000) per plot at the Ministry of Mining, the committee said. Individuals from black- listed companies are banned from bidding, and all bidders are required to attach a bank statement from a state-approved bunk Lo vuIIduLe LIeIr h- nancial feasibility. Maps of the mining plots have been put on display at the Gems Museum in Nay Pyi Taw. Mining companies, for- eign or local, should op- erate in accordance with the appropriate stand- ards, and also make sure Lo prevenL conIcL In reI- evant areas, said U Win Aung from an initiative working for Myanmars accession into EITI. U Ko Ko Aye from My- anmar Mining Associa- tion said: [The authori- ties] need to make sure that the social environ- ment of those areas are not harmed and small scale operations are pro- tected. A mining licence for gems usually last for three Lo hve yeurs. However, the government might consider changing the terms and conditions for LIIs uucLIon, om cIuIs suId. The mining sector earned $7 million from exports in the current hscuI yeur us oI LIe sec- ond week of July while the volume of investment from local businesses amounted to more than K13 billion, according to statistics released by the Ministry of Commerce. .-q~,:._.e .~.~ ._.. .~_.:. ,.:. ~_.:. .~ .:. ~.:. . . ~ qq: . .~ ~ . . ., ..... :.q .~:~ .~ . . ~ ~ .:.~ . . ~ . q, .~:~ .~ ....:. .~_ ..._..,._e ._. . , .:..... :.._ _e. ._~: . .~:~.~q~,:..~~.:. ._..,.:.....q. ..... .q.._~._~..q...,..~: .~. .~.~_.,._. ..._. .,. _e ..'e . :.._ e...~~.:.~ ..~~ .:. .. .. . . ~~ .:.. .~ ~. . _ ._ . . ~ ~ . :. ._..|q.__e._.. ~._..: ~ . ._. .~ ~ . . q~ . _.~ q~~ ~.. ~ ~ .~ . . .. . :.._ _ e. ._~:. .q._. ~..|q~,:._..:.q .~ ~.._._..~~.:.._ .: ._|..~~. ~,...__e. _. . ~.. . . ~ . ..:. . , . q.:. ~.~.:.~.,_e .. ~~~....~.~ ~._. .:~eeq, ~:.....'. ~. ~~ .,.~ _.,.:.~:~ . ~ q~,:.q: .~e .q.. . ~q:~ .....q, e. ~_.,.~.|q ._. . . ~ ~ ..:~ :.q:~ Black List .:q.~~.~- ...~.....~ ..:~ :.._.._.e~ ~._. .:.~~ .._~...:.q.q ~ . . q, . .~: ~. ~. ~ _.~.:.. Bank Statement ~ . . ~ ~ _ .q._ _ e. ~: .~:~ .~ q~,:_.~ ~ .,_._ .~:, ~ ..~~._...:.~ .. .:. q, . . ...:.._~: . .q._. Production of Minerals and Fossil Fuel Drops D aw Le Le Thein, deputy minister for national plan- ning and economic devel- opment, said there was a drop in the production of minerals and fossil fuels in the second half of the zo1-zo1q hscuI yeur. Only 82.5 percent of the Ministry of Energys extraction target was met because of depleting oil heIds, LIe Iower LIun ex- pected amount of natural gas bought from Thailand and a decrease in private production, she told a parliament session. As for mining, opera- tions in Lone Khin and Pha Kant areas in Kachin state shrunk due to armed conIcLs und smuII-scuIe mines being drowned out of competition, she add- ed. She suggested reforms including approvals to oil operations in a timely manner, thorough prepa- ration and accurate im- plementation of projects and a repair and renova- May Soe San tion program for aged heIds nuLIonwIde. Myanmar Summary _ ., .:. - .q .q, . .:~.:~..:.~e. ...:,_..:._~:. ~. q~ ., ~ ~ .._.. . ._ _._ .: . . ~ .~: ~._ . ~.~.~ _._.:.~..q- ~~,~, _:.. ~...:. . . ~ , .. ~ e._.:~ ..~ ~ ~.~:~_.e:..:q~ . .~.q..:~ ~...:. . . ~ , .. . .. :..q.e _e .~ .~~ . ~, _~._:,. ~, _~ ...'. . . , . ~ _..._.:_~:.._.._e. ._. _. .~~__ ~. _._,e ... e:.~,..._ ,e ._.. _. .q.~q .~:~ . . . ~ . . . .. : ,_ ..:_ . . ~._._,eq ~....:..q ..~~.:.~ ,e._.~._. ~.,~q ..~~..:~:. . . ~ . ,_ ..|..:_. .~ ._~: .q ~ . . . . : q_ . , ..~ ..:,_.qq.._e .....:. .~,_~.~ ..._.:..._. A worker waters jade stones at a Mid-Year Emporium for jade, gems and pearls at an emporium hall in the capital Nay Pyi Taw. S o e
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T u n / R e u t e r s August 7-13, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 6 Shwe Pipeline Carries 1.87 Billion cm Gas to China in First Year C hina imported 1.87 billion cubic me- tres of gas through the China-Myanmar gas Zwe Wai pIpeIIne In ILs hrsL yeur oI operation, China National Petroleum Corp (CNPC) said, as the pipeline slow- ly ramps up to full capac- ity. The multibillion-dollar gas pipeline stretches over 2,400 km (1,500 miles) from the Indian Ocean through Myanmar to the southwestern Chi- nese city of Kunming, al- lowing China to bypass the Malacca Strait, one of the worlds busiest ship- ping lanes. The pipeline should be able to carry up to 12 bil- lion cubic metres of gas a year at full capacity, while a parallel oil pipeline due to come online later this year will carry up to 440,000 barrels of oil a day. CNPC, which owns the pipelines, said in a state- ment posted on its web- site that the gas pipeline also supplied 60 million cubic metres of gas to My- anmar. The gas pipeline brings gas to China from the SIwe heIds o LIe cousL of Myanmars western state of Rakhine. Myunmur omcIuIs Iuve said previously that it would take about a year Lo hII LIe pIpeIIne Lo IuII capacity. In June, Myanmar an- nounced revenues of $3.3 billion from gas exports In LIe IusL hscuI yeur, down from the previ- ous two years, due to in- creased domestic needs. Revenues are expected to grow as exports to China through the pipeline in- crease. Myanmar Summary China-Myanmar pipeline should be able to carry up to 12 billion cubic metres of gas a year at full capac- ity, while a parallel oil pipeline due to come online later this year will carry up to 440,000 barrels of oil a day. A n d r e w c p a r n e ll/ F lic k r ~, ~ . ._ . , . ._ . . ~~. ~,~_.,.:~..~ ...~.. .:~.:~. ~ ... .e~-.~ .~:~ ..,......~ ..: q ~ ._ . . ~ ~ . . . . ._~: . ~, ~ ~. ..:. .q, . .:~.:~ . .~: . .q. q . ~ . _ ~_: . ._ . ..'.:.,...|..:..:~,~ . ._ ~. .|~ . . ~ . . ._ ...|. ~~~ .~: q_.:._ ~.e...q:.~. . _.,.:.~_e~_ ~,~ .~.q.~:..q ~.. _._,e. .~.e:.._ .~.._e.._. e...e~,.._..._~: ~. : .. :~, . . .. ..q .~_~:._e.._ ..~:.q .~_~:.. .ee...:_.. ~.~ .q:q:...._. ~..|.~..._ ..,. ~_._ ~~._ .~ . ._ . .|~ ~. . . . .:~.:~ . ~-.~:..|. ~ .e., .e e . ..: .... ._ e .q._. _. .:~.:~ . . ~ . .. e _. . e ~, .:. ._ .:~.:~..~.. ._ ._ . . , . ._ . . ~ ~..,. .q,... ._.,. ..|. ,,~,~~~ .~: .ee . ..: .... ._ e . q._ . CNPC ~ . ~ . . ._ ~. .| ~..~..._ _.,.:. ~~ ~ .:~.:~ . ~ -. ~: .,. '~ ., .......,._e .q._. State-run New Light of Myanmar to Relaunch in September T he state-run Eng- lish daily the New Light of Myanmar will be relaunched as the Global New Light of My- anmar on September 1, the newspaper reported. Local company Global Direct Link was awarded a 49 percent stake in the newspaper in 2013, with the rest owned by the Ministry of Informations News and Periodical En- terprise, in a bid to trans- form the government mouthpiece into a semi- independent journal. Converting the state- run newspaper into a dai- Iy Is LIe hrsL sucI experI- ence for the government and can be considered as a profound change in es- sence, Union Minister U Aung Kyi said at the launch of its new printing press. He said the move is aimed at transforming the paper into a free and public-centred media as Aye Myat purL oI eorLs Lo reIorm the media landscape. SLu Irom Jupun`s Kyo- do news agency have been training local journalists over recent months, the newspaper said. As part of the changes, the com- pany has invested a re- ported $3.45 million in a new printing press that can print 70,000 copies per hour of a 48-page tab- loid or a 24-page broad- sheet. Myanmar Summary Myanmar Summary FDI in Hotel and Tourism Hits $700 million F oreign hotels and travel enterprises have invested more than $700 million in Myanmars tourism sec- tor, Dr Tin Shwe, deputy minister for hotels and tourism said during the annual meeting of the Myanmar Tourism Mar- keting Association in Yan- gon. This is a direct response to the booming Myanmar tourism industry, which according to the deputy minister has made in- roads in the international market thanks to success- ful promotion campaigns for the industry. As oI JuIy, IoreIgn hrms have invested $690.88 million in 22 hotel pro- jects and $39.2 million in joint-venture develop- ments of four hotels in Myanmar, according to government statistics. The Myanmar tourism sector is expected to earn more than $1 billion this year, U Thet Naing Toe, May Soe San vice president of Union of Myanmar Travel Associa- tion (UMTA) said. The sector gained $534 million in 2012 and $926 million in 2013, according to the statistics released by the ministry. Last year saw the entry of more than 1.05 mil- lion tourists to Myanmar while the number is ex- pected to nearly triple to 3 million in 2014, according to Ko Tin Tun Aung from UMTA. The year-on-year in- crease in tourist arriv- als will receive a further boost, said Dr Tin Shwe, from the accession of three Pyu ancient city- states of Beikthano, ThayayKhittara and Han Lin into UNESCOs World Cultural Heritage list. This is expected to attract many foreign tourists to central Myanmar where these sites are located. Tourists from Thailand make up most of the tour- ists entering Myanmar this year, followed by the Chinese and Japanese, Last week, Myanmar Business Today reported that the Myanmar government and the European Union (EU) have signed a voluntary partnership agree- ment to promote timer exports. We were informed that the Myanmar government is in negotiations with the EU to sign a VPA und Ius noL yeL sIgned un omcIuI agreement. Correction ~. .q. ~ . . .~ ..: _.,.:~..~.,_e .:._ .~ ~ :.~. q~ ., . ._ Global New Light of Myanmar ~.__e ~.~ .~:.__e.._~:. .q._. _ ._ ~ . ~ . ~ _ e. ._ Global Direct Link ~.~ ._ ~~, . . . . .~ _ ~..|.~..:- qee: , q:..,.~ _.,_~:..q.~,_~. _:,.~.~:~q .~.. .:,e~..~.~:~. ~ee :._.. ~..q~|._e,.~..:. . ~ .. . ~~, ~. q ._ .~..:~_e. ._.: .. . ._ . while French, Spanish and English tourists form the bulk of the European tourists so far. _., .: .q .. :.. . , ....~ ~ ~ _._.e~e. .q ..:. ..,..:.. ._.:.. .,. ~~ .~: q..._.....~ ..: q ~ .,._~: . e ~e . .q .. :..:.q.. . , .~, _~ . _:, .~e~,_~. ..|~~: ~.q~ ._.:._. ~. ' q~., ~,.~:_~. . .. . e ~e _ ~ .._.. . ._ _., .: .q .. :....~ ~ _. ~ .q.~e - ~~,~, . . .~ ._ ~._ .~.~.~ ,.~ ._.:_~:.._.._e.._. _. _._..q..:..:.. _._ ~ . - ~:._~.. ~~ _._ . . .:.q:~ ..:.q .. :..:. . .. ._ . _.:.. .:.._ ~ ._._ ~~ ~ ~ . .:.qq ._~:. e~e..q..:..: .q. ~, _ ~ . _: ,. . ~, _ ~ . ..|~~:~.q~ ._.:._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com 7 LOCAL BIZ Myanmar Summary Bankers Urge Govt to Set Up Credit Bureaus M yanmars bank- ing sector should work towards es- tablishing credit bureaus that can provide credit histories of borrowers in a bid to provide a basis for creditors to access risks and actively screen pro- visions of loans, banking community said. The borrowers abil- ity to pay back the loans is an important factor in evaluating them. Myan- mar needs credit bureaus so that we can consult the credit histories to assess |rIsks| Ior Iouns, un om- cial from Kanbawza Bank told Myanmar Business Today. The current terms on loans in Myanmar usu- ally require collateral properties while provid- ing a small portion of the collaterals value as a loan, hindering many businesspeople who can- not provide any collateral to access these loans, she May Soe San added. We need capital, partic- ularly overseas funds. As the Central Bank chooses which foreign banks are to operate in Myanmar, the capital they bring will Increuse hnuncIuI ows into the country. We need credit histories if we are to issue loans, and the Central Bank is starting to provide that. Our bank Ius uIso InILIuLed mIcroh- nancing businesses, she said. The Central Bank has set the current interest rate at 13 percent, while the interest rate for small and medium enterprises (SMEs) is 8.5 percent, both of which are much higher compared to those of foreign countries. The current interest rate cannot be lowered, due to Myanmars 7 per- cenL InuLIon ruLe, com- pared with that of 2 per- cent in Thailand, said a banking consultant. The ucLuuLIons oI InLeresL rates depend on the mi- croeconomic market, he added. However, Myanmars domestic market will soon be increasingly open to foreign banks, and even with pre-existing limits, a sIgnIhcunL Increuse In h- nuncIuI ows und cupILuI for loans is expected in the country. _.,.:.~ ......~ .~_ Credit -,..'..|~ .:q,.~._.. .~.. Credit History ~ _~__ .... ~ e ._ ~..'~ ......__e.._~:. ~ . . , .~. .~~ ..:.~._.: ._. _.,.:..: Credit -, .~.~e.~.|q. Credit History ~ _~_ _. ..~: .... ~ .....q.e. ....e. .~ ~ ~ _~_ ~ ~.|. : .. . ... . ~ _ ., _~_ . qe ~.q._~.~e ''e ~.. :~~ . ~:~, q . ~. .~ ._.:._ . .~ q _., .:. -.... ~e..,..: ~..|.._. ~..:.q..: ....~e ._.. .~q ~._. ~..| .... . ~. . .:...: ._ . ~ .:. . ~ ... . . . : ,_..|..,._~:.~.,~~e .~...:..: ~..|.._. .... ._ ~._.~.,~ .q ..:..,._~: . ,.~ .:~ _. ._.:.._. .~.~e.q Oversea . ..~e. -e~~._. Foreign ~.~ .q..e .,~e. . Foreign ~.~ _.,.:.~ ~q.~...~e .:q .......~ ..:. .:.e. ~.~~~~ .... .e . q Credit History .~ ~. ~. .:.e ..|~ -e ~ ~._ . .. . .,_ . . ~, .~ ~ ~._ . Micro Financing ....,_.''e ,.~ ._.:._. .~ q _ ., .:. .~: -e ~. ..~:...:~~..,. .: ~, q:..,.q_.. ~... .:.. ~.~ .:.. . , .. :. ~~ ~ . . ~ :...:~~ . .,..: ... q:..,.q_.. e..: ~_.:._._...:.. . .e .|~ ~~ .. , .. : .:.. : _. .:..,...._~: . . q._ . Myanmar Summary S Korean Shoe Factory Sued over Compensation Dispute A shoe factory owned by a South Korean businessman was charged as it failed to pay salary and compensation to workers after the closure of the facility in late June, state-run media reported. The factory owner will face four charges due to their failure to send no- tice to the Ministry of La- bor, Employment and So- cial Security for shutting down the factory and send documents related to the salaries of workers and agreements between the employer and workers. The factory also failed to pay salary and compensa- tion to over 700 workers for the closure of the fac- tory and monthly social security fees for the work- ers to the Social Security Board in May. The salary for June for more than 700 workers amounts to nearly K65 million ($67,080) and the total compensation for the closure of the factory amounts to K130 million ($134,159). Kyaw Min The factory said in its announcement issued in early July that the closure of the factory was due to LIe hnuncIuI probIems they were facing as a re- sult of their low-quality products. More than 750 workers lost their jobs when the factory closed. The Master sports facto- ry was opened a year ago in the Hlaing Tharyar In- dustrial Zone in Yangon. . , . ._ ~. . . ., ~q, ~ , _. . .:e:.~ . ~ , ~ e . . . ._ Master sports ~:.~.:. .. _ ..~ , ._ _~ ~ ._~_: _...q .~,~ .~...._.. ~. .|e ,. .~ , . q ~ q.e:. . . .. . , .q ~ ..:. ..:._~.. .:.~ ...... _. . .q e . q._. ~..~..:..~ ~..| .~,.~....:~,.._. .:. ~q_ ~.. ., . .|.._e _:.q._..,:.:.q.., q._e ._~_:._...,:~.. e. ~ . .~ , . ~ . . .. q._e ~. . ..:. ~ ~. . .~ . _e. . q._ . Myanmars banking sector should work toward establishing credit bureaus in a bid to provide a basis for creditors to access risks and actively screen provisions of loans, banking community said. M in z a y a r / R e u t e r s August 7-13, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 8 Myanmar Summary Myanmar Summary Myanmar Acreage Dished Out to Eni Eni enters into PSCs for exploration of two onshore blocks I LuIIun energy hrm EnI, following its partici- pation in the heavily- contested international bidding for Myanmars onshore blocks, signed two Production Shar- ing Contracts (PSC) with the Ministry of Energy for RSF-5 and PSC-K on- shore blocks in Nay Pyi Taw last week. The joint venture is be- tween Eni, with a 90 per- cent participating interest through Eni Myanmar BV, and the Myanmar Production and Explo- ration Company Ltd (10 percent). Blocks RSF-5 covers an area of 1.292sqkm in the proIIhc SuIIn BusIn ubouL 500km north of Yangon, while block PSC-K cov- ers an area of 6.558 sqkm in the unexplored Pegu Yoma-Sittaung Basin, in central Myanmar. The exploration period will last six years, divided in three phases. This agreement marks EnI`s hrsL enLry InLo My- anmar, a rapid expanding economy, and bolsters the hrm`s sLruLegy Lo reInIorce its presence in Southeast Asia, where it is present in China, Vietnam, Indo- nesia and Timor Leste. Myanmar awarded 16 onshore blocks late last year, 13 of which were for production sharing con- tracts (PSC), with the oth- er three being petroleum recovery contracts (PRC). Malaysian state player Petronas, ONGC Videsh Kyaw Min of India, Brunei National Petroleum, Petroleum Exploration of Pakistan, Russias Bashneft, Cana- du`s PucIhc HunL, CAOG of Luxembourg and Thai- lands PTTEP all won blocks. When the round was launched in January, 18 blocks were put on of- fer. However, two blocks received no bids, govern- menL omcIuIs Iud eurIIer said. A total of 78 com- panies initially sent in letters of interest and 26 companies later submit- ted 54 proposals for 16 blocks. From page 1... From page 1... Tharyar industrial zone, said. U Kyaw Myint, Manda- lay regional minister for electric power and indus- tries, said the transaction contracts of the lands which were sold but re- ceived no development should be scrutinised, adding that this land issue may become a challenge for the government. Many entrepreneurs are facing obstacles to ac- cess land as land is being hoarded like commodi- ties. For example, we cant disclose the location if we plan to open a CNG gas station because otherwise the price of land in that specIhc ureu wIII jump, U Kyaw Myint said. TIe PresIdenL`s Omce Is planning to assign a group led by the vice president to identify empty land plots and to reclaim it by compensating the owner the amount paid to buy LIe Iund In LIe hrsL pIuce. However, the former governmenL omcIuIs und well-connected business- people are among the ones investing heavily in land in industrial zones raising doubts about the eecLIveness oI LIe up- coming plan to regain the unused land. The fact that those plots have gone through the hands of multiple owners or being used as collaterals for bank loans will provide complications for the pro- cess of regaining the lands, businesspeople said. .~ q_. . . .q . . ..|.. ~ ..: . ..|.e.q .,~.~.~,.~~ ~_.~qe~~~ ~:..e. _...~: ~.q:..e.q .~ . ~ , .~ ..'.:. :.e ~ ...q GDP ._. ~. .:.:.e~.|.''e ,.~ ._.:._. _.,.:.~ .~.~,_~. ~ ~,q_.. .~.~,._.e:.:.~ .~ . . . , .q .:. . .q: .. .... ..: ._ . ~. .._ . :.q ._ ._.. ~ ._., ..:.. : q .,._. e..~.~,.:.~ ~ . ._e. ...q.~~ ~ .~ . q: ~ .. _._ ,e ~. .q .:.. .~.~,_~._~..q.. .. ....q. .. ..~: .~ ~ . _ . .~: ._..:q ..:..~:~ e _...~q ._~:. ,.~ .. ._.:_~:.._. .~.~,.:.~~. ..,. .:. ~.~:~_.e:..: q ~ _. ..q ._ ._.~ ~ .. .:. ..~.~_ .... ,_. ....:. ~_.,~: .: _..:q.~: ..:q~. _. ..~ . ~ ~:.~~ . . . , . .:.~.~:~_..e:._ ._.~~...:.~ ..... ,_..~_ _.,._...._. ~: SME ..,..:. ~.. . ._ . . , .q .:.. . . , . .:. .~ .: . . .:. . ....,...:.:_e _.,._ .q: .. . ._ ~: . .. ... .~ . ~ , . . ., . .q..~: .~ ~~ ..q.. . ...: ..: .~ ._.:._. _.,.:.q ~...._~.. _._ ,e ~. ~ .~ . ~ , . . , . .:. ~.~:~_.e:..: q,~~~ e.~ .~.~, ._..:. .e:..:...:._. .~...,..:. ~.,~~e . . ~ _. ..q ._.e:.~ . .qe ~: _.~,..:..~:._.. .,~ . .:. ..:~ . . ., _~_. .. ._.e:~. ~. .. ..:..:q.._. ~....:.. ~.~.:....:. .q...,..:.e_e.~.~~.q. ~~ ~ e. . . ~~. ~~ . e . :. ... . _ . . e. . . ~ ~ . e .:....:.._~: . .:.__:..~ .e ,~ ~ .:......_e e .q._~: . . .. :..q.. . , . e _ e .. ~~ ~ ._ ... .~, e . ,_....q.. ....~ ~~. . , .,_ ....q.~~ ~ . . ..: q ~ .~ q ._ ~: . . q ._. MCRB Report Looks at Myanmar Companies Transparency T he Myanmar Cen- tre for Responsible Business (MCRB) Ius IuuncIed LIe hrsL TiME/Pwint Thit Sa re- port looking at the trans- parency of Myanmar company websites relat- ing to information on re- sponsible business prac- tices. The report, which draws on established methodol- ogy from Transparency International, analyses how much information company websites pro- vide on anti-corruption, organisational transpar- ency, and human rights, health, safety and the en- vironment (HSE). The aim of the report, which will be repeated in 2015, is to encourage in- creased transparency by Myanmar businesses in these areas, the Yangon- based group said. The report shows that nine of the largest My- anmar companies, led by KBZ, Parami, and Max Myanmar publish a signif- icant amount of informa- tion about their policies, standards and practices on these issues. However 25 of the 60 large companies are not at all transparent, having no websites and therefore score zero in the survey. A number of other com- panies publish only a lit- tle information, generally relating to anti-corrup- tion or organisational transparency. Companies scored fewest points in Aye Myat the areas of human rights, including land acquisi- tion, and HSE, where the Centre was seeking evi- dence both of policy ap- proaches and information about their implemen- tation, given that these Issues ure oI sIgnIhcunL concern to the Myanmar people. Vicky Bowman, director of the Myanmar Centre for Responsible Business, said: We congratulate those companies who despite no current nation- al regulatory requirement to do so have begun a journey to be more trans- parent, and upgrade their corporate governance, sustainability practices and public communica- tion in line with interna- tional standards. For those companies who have not yet begun this journey, we hope they will do so. She said over the com- ing months, MCRB will be oerIng IurLIer udvIce to Myanmar companies on best practice on anti- corruption and respect for human rights to ena- ble them to improve their performance. Bowman added that this is a study of what informa- tion companies publish, and not an assessment of their actual performance in these areas. Policies and commit- ments mean nothing unless they are known, understood by all em- ployees and embedded in the companys day to day business activities. She encouraged lo- cal media and Myanmar civil society groups to study the public commit- ments that these compa- nies have made, and hold them to account to deliver on them. KBZ Bank`s head ofce is seen at Pyay Road in Yangon. KBZ Croup is one of the nine Iarge Myanmar companies that pubIish a signicant amount of information about their poIicies, standards and practices on these issues. S o e
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T u n / R e u t e r s .~~:...~..,._~. Eni ._ _.,.:~,.~..q, ~..e:.q. ..~~.:.~~~ . ~~:. ~_ . .~, e _ . . _ . ..,:~ . . .~ ~,_~._:,. RSF-5 . PSC-K ~~~~ ~... ..~_...:.. (PSC) ~ .,_ ._ .~: ~ . . . . . ._~:. .q._. Eni . ~~ .~ . ...| ...: q~..:~.~.: _.,.:~ ...q..q:.e.q.~.~.. ~~_e._.. Eni _.,.:~ ~ q:..,._~~: _.,.: ~.~. ~~ q:..,..|~ :.._~:. .q._. RSF-5 ..~~.: q,~, _.._.:~~ ~..~: ~~ .,~~: ~~.~:...: .:...~.. ...~_e._.. .~q,.~_ ~ ... q ._. ~:~,e.q..: ...:..q. . . , .. q: _ ., .:. ~: (MCRB) ._ _.,.:~.~ ~ ~:,~ ~~ . . . :.~ ~:~,e.q..: ...:..q... ,.~..~.:...~.~ _ ._...._..:.q._ . ._ ~ .. .::. ..: ........~.q..:~ ~_.,.~._. ~. q . .:~ Transparency International - ..:..: ,_ ..,. .:.~ . .. :._. .~ . ~ ~~...:.~ ~~.~.:. .~~e~.q. ~e~._.. ._:, . . ._ . .:. . . ~. ~.q. ~ , ..:.q. ._..q.. .:~.~~,.~ . q: ~. ~ ~.~ ._ . .e:_.:.._~ .,...:. ._. _~. q . .:- .~_ .~ . : _.,.:..,..:.~:. ~.. .:.~ . . ._. .:. _. .:. .:_e..:q~q, ~,.~:. ...e_e.._~:. q,~,~._. .~ MCRB ~ .._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 9 Myanmar Summary Contd. P 12... Myanmars Political and Economic Reforms Are Emerging Unevenly: Report D espite a series of rapid and dramat- ic reforms since electing a civilian govern- ment in 2010, Myanmars transition remains fragile, according to new research from the global humani- tarian agency Mercy Wai Linn Kyaw Corps. Many outside observ- ers see Myanmar as a country with abundant natural resources, under- developed markets and a government eager to assume greater stature regionally and globally. But the report, Visibility versus Vulnerability: Un- derstanding Instability and Opportunity in My- unmur, hnds LIe counLry facing a series of unique challenges. WILI hve decudes oI military rule, an isolated economy and war be- tween the government and a number of ethnic minorities, Myanmar is largely unprepared for its new role as an open soci- ety, says Sasha Muench, director of Mercy Corps Economic and Market Development Technical Support Unit. Theres no question that the country holds great promise. But its challenges are also vast, not the least of which is a government and a civil- society sector still strug- gling to learn how to work together. The report recom- mends several policy and program changes to help Myanmar progress through the expected and unexpected problems that will arise as part of its transition process: Build networks for resil- ience involving govern- ment, civil society and the private sector; Develop conIcL munugemenL skills among key groups throughout the country; Support responsible civil- society leadership to en- gage more constructively with government; Secure land rights in a quick, transparent and equi- table fashion; Invest in smallholder farmers as a means of fuelling equita- ble economic growth. To ensure that Myan- mar emerges as a stable, peaceful and developed country, its critical to en- sure that ordinary people benehL Irom LIe reIorms underway, Muench said. Postal System to See Increased Transactions: Minister M yanmars postal system is ex- pected to see an increase in the volume of mail transactions by 95 percent during the cur- renL hscuI yeur, U KIum Aung, deputy general manager of the Planning and Training Depart- ment at Myanmar Posts and Telecommunications said. The comment was made at a Japan-Myanmar con- ference on postal services held at the Telecommuni- cation and Postal Train- ing Center. Improving Myanmars postal system requires not only reforming the organisation, but also im- proving the performance of employees. Japan re- formed its postal service more than 100 years ago, Japanese Vice Minister Ior nLernuI AuIrs und Communications Masa- hito Fujikawa said. Myanmars postal sys- tem needs to expand its operations and business Phyo Thu oerIngs In LIe IuLure by providing services in ad- dition to standard mail service and money or- ders, Fujikawa said. The governments of My- anmar and Japan signed an agreement for coop- eration in the postal sec- tor in April. So far, Japan conducted three surveys on the operations of My- anmars postal sector. The public lost faith in Myanmars postal system many years ago. We are trying to restore peoples faith, U Kham Aung said. Reforms are expected to begin in April 2015. MPT aims to improve the relia- bility of the postal system while introducing new services in cooperation with Japan. Japan recently pro- posed to help and is cur- rently working to identify what support to provide, as such the scope of co- operation is still limited, said U Shwe Thun Maung, manager of Yangon Cen- LruI PosL Omce. Despite a series of rapid reforms since 2011, Myanmars transition remains fragile, according to a new research. D a v id
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August 7-13, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 10 Air KBZ to Begin Charter Flights This Month A ir KBZ will intro- duce air charter service starting this month, U Myat Thu general manager of the private airline told Myan- mar Business Today. A eeL oI sIx exIsL- ing aircrafts, along with an ATR72-500 airliner, Kyaw Min which arrived on July 9, will be available for both domestic and interna- tional service in August. The new plane can- not be put into service right away. Inspections und modIhcuLIons wIII be made in order to ac- commodate government standards, he said. We are planning to Air KBZ ..._~:... ~.,_ e _ . ~ .. .~ _ . . ....:..q...:.~ ._... . ., ..... :.._ _e. ._~: . Air KBZ ..._~:.... ~...,.,: ._.~.~ Myanmar Business Today . ._.:._. Air KBZ ..._~:... ._ ~ . q~ ., ~ .q:~ q .:..: ATR 72500 ..e: . e. q ..:..e: ._.:~ . . . . ..| .. ,. . .~ . .. . :..q . . .:.~_e. _._ ~ . _._ ..q. ..:.~ _.~...~~: . ., .._ ... .... :.._ _ e. ._~:. .q._. Air KBZ ..._~:... ~.,_e _._~._.,e.:._e. ._ .,_._.~: .~:~_e ...~ ~:..~ ee. ~.~ :.~e ._.:~. ..... ~....._ _..:.. .~q~.,~ ..,.._... ....,._~:. .q._. cuL Iures durIng LIe o season, which runs from April to September, U Myat Thu said. Air KBZ is currently con- ducLIng domesLIc IgILs to Nay Pyi Taw, Kyauk- phyu, Sittwe, Tarchileik, Heho, Kyaingtone, Da- wei, MyaukOo, Mandalay and Kalay. Myanmar Summary Only 3pc of Tiger Populations Left In Asia: WWF O ne of the worlds most majestic creatures is now one of the most endan- gered. In a recent report, the World Wildlife Foun- dation (WWF) revealed a 97-percent drop in the population of Asian ti- gers. There are currently only 3,200 tigers left out of 100,000 originally liv- ing in the wild, the report said. The report warned that the major threats to Asian tiger species are poaching and illegal wildlife trade. The causes of this un- derground trade of tiger goods are hard to moni- tor, being of value for tra- ditional medicine or as a status symbol in Asian cultures. The causes of habitat destruction are much harder to track, especially due to the nearly irrevers- ible damage to these re- gions. Tigers have lost 93 percent of their historic range, the report said. In the report, WWF also exposed the human fac- tors that have led to the tigers decline. Ranging from simple facts about Logan Linnane the species to the causes of their endangered sta- tus, the report makes a case for the protection of these animals. In 2010, WWF and the 13 tiger range countries committed to doubling tiger populations in the region by 2022, under a campaign entitled TX2. The organisation pro- fessed that it only held data for Nepal, India, and Russia. However, it lacked data from the oth- er countries in the region. Regions where WWF has the most data are where they have been investing in projects to improve monitoring of tiger populations. Where there are no projects im- plemented, WWF encour- ages countries to monitor tiger populations within their borders. The NGO plans to take on the most pressing is- sues oI LIger LrumckIng by joining with other or- ganisations to stop illegal wildlife trade and black market commerce. These programs focus on enforcement of illegal poaching and reducing demand for tiger products and exports. R e u t e r s ~.:..'~ ~_._.~.. .~~|~..._e.._ ~:... . e . :.._ ..~. q:e ~ .q:~ .,._ .~. : .:.q ~q.:,,.....q..e:... q. (WWF) ~ ~:q~:. ~.q~~~e: q:..,. .~: ~. .. :.._ e ~ _., ._~_:. ._ .._~_:.~ ~ .:~~..:~.,.._ ~:..~:.q ~..,..~:. e. ,~~ ..:~.:~,q ._~:. .e:_..|q._. Myanmar Summary ~:q ~ :.. .. ~ ~ ~. ~ _. ..._.:~ .,_. .. :~q:..~ ~. .~_... ~q:..~~,.e _. .~ . _e. ._ .~:q ... ~ ~.q..... e.~.. ~q ~ .. _.~..: ~.e: ~_e.~.._.q,~~~ ~:. .:.~ .~_e~_... .q:. ~e.e:~~:._..~ ,... q, .~ . .,. _e. ._ e ._~_: .~ ~ .~ ...._ .:_ ~:.. ._. ~:..:.~ e. .. ..~ _e~ ., .~ ._.q:.q, ~.~~.~.:. q._. B lo o m b e r g August 7-13, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 11 Myanmar Summary Contd. P 12... Contd. P 12... India Tests Myanmar Waters as Chinese Dominance Loses Steam I ndian External Af- fairs Minister Sushma Swaraj will conclude a series of diplomatic mis- sions throughout Asia with a visit to the Asean Foreign Ministers Meet- ing in Myanmar in Au- gust. Her visit will set the stage for Prime Minister Narendra Modis upcom- ing visit to Myanmar in November. These visits come as public and gov- ernmental opposition to Chinese infrastructure projects in Myanmar ris- es, oerIng ndIu LIe op- porLunILy Lo hII LIe sLru- tegic gap left by Chinas wunIng Inuence. While China remains Myanmars largest trade partner and supplies the bulk of the Myanmar Armed Forces weapons, the Myanmar govern- ment seems to be losing interest in Chinese infra- structure investments. On July 18, Myanmars Ministry of Rail Transpor- tation announced the can- cellation of an agreement with the Chinese govern- ment to build a railway connecting Kunming in China to Kyaukpyu in Rakhine state. Ministry director MyintWai attrib- uted the cancellation to public opposition. Chinas ambassador to Myanmar Yang Houlan exposed Beijings discon- tent when he countered the ministrys claim, say- ing in a July 25 press con- ference that the project would proceed with the support of the Myanmar Jacob Goldberg government and people. He also claimed the op- position to the project has been overstated by the Myanmar government. Yangs claims have not been corroborated by the Myanmar government. The 1,215-km Kunming- Kyaukphyu railway, pro- posed in a 2011 MoU be- tween the Chinese and Myanmar governments, would have followed the route of an existing pipe- line that connects gas heIds In LIe Andumun Seu Lo rehnerIes neur Kun- ming. The $1 billion pipe- line was fully funded by the Chinese government. A recent Reuters report said the pipeline has been delivering only 15 percent of its intended annual ca- pacity to its destination in Kunming. Similarly, the bulk of the $20 billion cost of the now-defunct railway pro- ject was to be borne by the China Railway Engineer- ing Corporation (CREC). However, in the three years since the MoU was signed, public opposition to the project has ham- pered all progress on con- struction. Political parties and civil society groups in Rakhine state, through which the railway would have passed, have pro- tested the construction of the pipeline as well as the railway, citing envi- ronmental and social con- cerns. Groups in Rakh- ine state also oppose the practice of exporting local natural resources out of Rakhine territory. The cancellation of the Kunming-Kyaukpyu railway project follows a growing trend of op- position to Chinese in- vestment in Myanmars infrastructure. In 2011, public opposition to the multi-billion dollar Myit- sone hydroelectric dam, another Chinese pro- ject, prompted President Thein Sein to suspend the projecL IndehnILeIy. Wasbir Hussain, di- rector of the Centre for Development and Peace Studies in Guwahati, de- scribes Chinas engage- ment with Myanmar as the pursuit of a three ob- jectives. First, China seeks to use Myanmars natural resources to meet its do- mestic demand. Second, China wants to expand its access to the Bay of Bengal and the Andaman Sea in order to develop a modern maritime recon- naissance system. Third, China is bent on deny- ing India strategic space across South Asia. The cancellation of the Kunming-Kyaukpyu rail- way project and the lack- luster performance of the China-Myanmar gas pipeline endanger all of Beijings objectives. At the same time, New Delhi seems to be achiev- ing its strategic goals in Myanmar with increas- ing ease, allowing India Lo hII muny oI LIe remuIn- ing gaps in its Look East Policy. While Chinese projects Myanmar are consistent- ly falling prey to public disapproval, several in- frastructure projects that will connect Myanmar to Indias northeast states appear to be making pro- gress, even in the face of similar local opposition. Kaladan Multi-Modal Transit Transport Pro- ject, which will connect Indias Mizoram State to a deep-sea port in Sittwe, is projected to be completed by 2015. The project will expand the capacity of the Sittwe port facility, giving Indias northeast states access to a harbour in the Chinese President Xi Jinping (L) holds a welcome ceremony for Myanmar President U Thein Sein outside the Creat HaII of the PeopIe before their taIks in Beijing, capitaI of China, in ]une. P a n g
X in g le i/ X in h u a ~ . e. _ .:. .q. ~, _ ~ . Sushma Swaraj ._ ~:q ~ ~ ~. ~, .~ . ~., .q. .q...:.~ .:..q:~.__e. _.. _.,.:.~ _.~._ ~..._ ._.:..q.~,_~. .:.~._.~.~..._. .: .q:~.__e.._. ,.-.: .q:~ . . : ~, _~ ... ,:q, .q: ..- _.~. _.,.:.q.. ~~~ ~_~.:.q:~_.. _..._._e.._. . .~.,.q..:.q:~. .:..: _.,.:.~ ~,~ ~._.. ~..:~ ~~ . . ~ , . .:.~ _., .:_._ . . ~. .q. . . ._ .,~.:._~. ,. ~~..,~: ~,~- _.~: ~...:..~~ .... .:. ..: e _e ..q.~ ~ .. .:.~ ~.e~ ~.:.~.: .._ ~.~...._.q .: .._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 12 From page 11... Construction Ministry Seeks Parliament Approval for $80-m ADB Loan T he Ministry of Con- struction is seeking approval from par- liament for a loan of $80 million from the Asian Development Bank (ADB) to upgrade a highway in southwestern Ayeyawady Delta. The upgrading of Mau- Kyaw Min bin-Kyaiklat-Pyaponis road is estimated to cost $88 million and the gov- ernment will provide the outstanding amount. Minister for construc- tion U Kyaw Lwin said that it was essential to upgrade the road for the economic recovery in the area which was worst hit by Cyclone Nargis in Myanmar Summary Myanmar Summary 2008. If upgraded, the road wIII noL ood In LIe IuLure and will serve as an evac- uation route in the event of disastrous cyclones like Cyclone Nargis, he said. ADB had provided My- anmar a loan of $60 mil- lion in January which will be used in power sector to cover installation of new transformer at sub- power stations in power supply system of Yangon, Mandalay, Magway and Sagaing regions, substitu- tion of old power cables with new ones, instal- lation of aerial bundled conductors at power lines and that of digital meters. The Ministry of Coop- eratives also sought par- liament approval to buy farm machinery from South Korea which it be- lieves will help realise the goal of reducing poverty to 16 percent in 2015. Govt Signs Petroleum Recovery Deals on Two Onshore Blocks T he authorities have signed improved petroleum recov- ery deals for two onshore blocks with foreign and IocuI hrms. Under contracts ini- tiated in Nay Pyi Taw between the state-run Myanmar Oil and Gas Enterprise (MOGE), Brit- ish Virgin Islands-based MPRL E&P Pte Ltd and Myanmar Petroleum Ex- ploration and Production Co, the tasks of improved petroleum recovery is to be implemented on two onshore blocks in Pyay and Myanaung out of 16 onshore blocks. The oil companies are to conduct the environmen- tal impact assessment (EIA) and social impact assessment (SIA) in the respective blocks and co- operate with local author- ities for development of the regions. In October 2013, 10 for- eign companies out of 78 from Britain, Brunei, Canada, India, Italy, Lux- embourg, Malaysia, Paki- Aye Myat stan, Russia and Thailand won tenders for oil and gas exploration at 16 on- shore blocks in Myanmar. AccordIng Lo omcIuI sLu- tistics, foreign investment in the oil and gas sec- tor amounted to $14.372 billion in 115 projects as of June, accounting for 30.76 percent of the total. The sector is the second- largest foreign invest- ment receiving sector fol- lowing electric power. Myanmar Summary ..:~ . . .q.~, _~ ._:,._ -q:~~ _ .. ~~ , ...'... ~.,:~ .~: ~ . .q ~.~. ._.... .. ..:.~ ~. _. ~ q,~~~ ~:qe_e..q.~ . ~..q~,..'.: .,. ~ ....qq.q, .~.~:- ~~__..~~ ..:..., ._~:. .q._. .~. ~~.~ e:.... . ..:.~ ~. _. ~ q, ~~ ~ .,.,.._.~,~.q~.: ~.. q~,..'.: .,._e._.. ~..q~ ~..|~,~.q~ .:.~ .:~.....:.._e .q._. ..:~ . . .q.~, _ ~ ._:, _._.:.~,_~...~:. ~ ~. .|...._ ~~ . . . ,:. . ~. , .. , ~ ..~ . . q_. ..,:~ . .. :..q._ ., ._ e _e .~ .~~ q, ~~ ~ ._e. ..,_., ._ _. . ~. _. ~ q._ .. .. ..:._e. ._e ._.:_~:..._. _ ., .: ~:~:. .:. ._ ~ , .~ ..q, q :.e . ~ .. ~.~~..q,~~~ .q,.. ~ ~ . . . ~ ..e: . . ~ q, _._ ..q, ~ . ~ . . . . ..:~ .:.. .. . . ._~:. . q._ . _.,.:.q,..:~.:~. ..,. MOGE . British Virgin Islands ~._..~ MPRL E & P Pte Ltd ~._ _., .: .q, . .:~.:~ . q:.e~..e:...~.~~..q, ~,.~..q, ..~~ ~' . q ._ ~,~ . . . _e. ._ _._ . _ ., .~: .. ~ ~ .:.~ .q, ~ ..e: . q, ..:~ .:......._. Bay of Bengal and con- necting Myanmar to Kol- kata port. Groups such as the Kaladan Movement in Ra- khine state and the Chin Human Rights Organi- zation have raised con- cern about the Kaladan project due to the lack of environmental impact as- sessments throughout the planning process and the ubsence oI uny eorL by either the Indian or My- anmar governments to consult with populations living along the route of the project. Nonetheless, this oppo- sition seems to have little impact on the progress of the project. Earlier in July, the gov- ernments of India and My- anmar also pledged to pro- ceed with the creation of a highway bus route that will connect Moreh in Indias Manipur state to Manda- lay, which is set to be com- pleted in October. According to Madhur- jya Kamar Dutta, program manager for trade and investment facilitation at the Mekong Institute for Development and Coop- eration, India-funded in- frastructure projects will facilitate the emergence of a new Mekong-India eco- nomic zone. The Moreh- MunduIuy IIgIwuy wIII hII a crucial gap in the Asian Highway network as well as connect Indias north- eastern states to the East- West Economic Corridor, which connects Mawla- myine in Myanmar to Da Nang port in Vietnam. Thus, India will achieve a level of connectivity throughout Southeast Asia similar to what China has enjoyed for centuries. Both Indian and Chi- nese infrastructure pro- jects in Myanmar have faced public opposition, but only Chinas plans have unravelled as a re- sult, while Indias projects have remained intact. It is possible the Myanmar government has found a new patron in Asia. But it is more likely that these events follow Myanmars well-known practice of balancing the great pow- ers against each other. By challenging Chinas monopoly, the Myanmar government is opening strategic space to create further competition be- tween India and China, uordIng Myunmur more leverage and autonomy in the international arena. From page 11... From page 9... MPT provides services LIrougI 1,81 posL omces throughout the country and has more than 4,000 employees. The quality and scope of the services are expected to improve with the potential for LecInIcuI und hnuncIuI support from Japan. e. _:.q.. . ~~ ~ _., .: .:...,.. .:......,. q:..,.., _.~~q, ..: . , .:.._~: . .~ . e .q. ~, _~ ._:, _.,.:.~.e.q. ..,...~,.. ...:.q. _:, .~e~...,.,: . . . . . ~: ~ Tel e Communication and Postal Training Centre ~ _ ... ..: .,_.,.:.:...,. . q:.~ . .. ... .. ~ ._.: _~:..._. ~..|~...~,:.~ ~~ .q:~.:. .,.~.e.q. . q:. ~ e~, _~ . 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Guwahati q e _e ..q.. _ . ... ..q... .:. . ~: .| , ~ ~: Wasbi r Hussain ~ .._. _.,.:.q ~.e. ~,~ ~._.. ~..:~ ~~ . . ~ , . .:.. . e~ . .. :. -., ~ ..:..q..,q..:._. ~, ~ . -~. ~. .:..: ~..:~ ~._e. .~ q _. . ~ . e . . ~ , ..:.. :.~ .~ ~_ _ . .~qq: _.,.:~..q~.,_e ~:q~ .~:.:~.,:~. ~..q:.~.:._.e e._ q.._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 13 Myanmar Summary China Poised to Pass US as Top Business-Travel Market C hina is poised to displace the U.S. as the worlds biggest business-travel market by 2016, aided by accel- erating export growth and sIowIng InuLIon. Spending worldwide for business travel will climb 6.9 percent this year to $1.18 trillion, according to a report released to- day by the Global Busi- ness Travel Association. Growth will accelerate by an estimated 8.6 percent next year and then slow in 2016 through 2018, the GBTA forecast shows. In China, the increasing pace of exports since mid- 2013, consumer prices running below govern- ment targets and nominal wage gains that support more spendIng und prohL growth are contributing to an expansion in the market. That contrasts with the US, where eco- nomic growth has been stubbornly low, along with employment and wages, the GBTA said. China, along with the other BRIC countries of Brazil, Russia and In- dia, are leveraging their business travel expendi- tures into more economic opportunities, said Mi- chael McCormick, GBTA executive director. We expect to see this shift in business travel spending to continue. Spending in Russia may fall more than 5 percent this year, the GBTA said, Mary Schlangenstein amid safety concerns and the international sanc- tions imposed on the country, triggered by the crisis in Ukraine. Since the GBTA began its study in 1998, the US has been the worlds larg- est business travel mar- ket, although its not seen the fastest expansion. While spending in China increased an average 16 percent a year since 2000 to reach $225 billion in 2013, in the US it rose 1.1 percent annually to $274 billion. Conj ested Ai r space Last year, American business travellers spent $1.20 for every dollar spent by the Chinese, down from $7.7 in 2000, according to the GBTA, which analyzed travel spending in 75 countries for its study. The projections have implications in areas as diverse as hotel construc- tion and plane purchases by airlines, and if real- ized will add pressure on Chinas already congested uIrspuce, wIere IgIL de- lays run at about 25 per- cent and only 20 percent of available airspace is al- lotted to civil aviation. China is expected to ac- count for half of the in- crease in Asias commer- cIuI uIrcruIL eeL Lo 1o,oo in 2020 from 6,000 at the end of 2013, according to Ed Greenslet, who pub- lishes The Airline Moni- Lor. TIe US eeL wIII grow to just over 7,200 from 6,482 in the same period, he said. Bloomberg Sooth Koreu OHers $11 Billion in Stimulus Spending as Growth Dips S ouLI Koreu oered billions of dollars in stimulus spend- ing and property market- boosting steps to shore up demand after report- ing its weakest economic growth in more than a year. Exports in Asias fourth- largest economy have benehLed Iess LIun ex- pected from a pick-up in the global economy this year, but domestic de- mand has been fragile since a mid-April ferry accident hit tourism and its services industry. The government rolled out an additional 11.7 tril- lion won ($11.4 billion) in spending and 26 trillion won oI Iouns or oLIer h- nancial support, and loos- ened mortgage borrowing restrictions. The central bank sepa- ruLeIy oered bunks up Lo 3 trillion won to encour- age them to expand lend- ing at low interest rates to companies that build factories in the country or buy machinery. Analysts said the sup- port package was likely to give at least a short-term boost to consumer spend- ing, but warned it could add to household debt levels, already among the highest in the world. This is surprising to us in that it marks a shift in policy stance toward debt-driven growth from what was focused more Christine Kim and Choonsik Yoo on containing debt, said Young Sun Kwon, econo- mist at Nomura in Hong Kong. President Park Geun-hye has called for all-out ef- forts to boost the economy and Finance Minister Choi Kyung-hwan promised to take massive action, which investors believe will pres- sure the central bank to cut interest rates as soon as August. The economy grew 0.6 percent in the April-June period over the prior quarter, the weakest since LIe hrsL quurLer oI zo1 and below expectations for 0.7 percent growth, data earlier on July 24 showed. The ministry cut its 2014 growth forecast to 3.7 percent from 4.1 percent. Reuters Myanmar Summary Tourists take photographs in front of the Ruins of St PauI`s CathedraI in Macau, China. 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August 7-13, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 14 Asian Economies to Struggle on Weak Export Demand T he outlook for emerging Asia has dimmed further this year on weak demand for exports, although growth in India is expect- ed to accelerate into 2015 even as China is held back in part by a slowing prop- erty market, Reuters polls showed. China and India have been stung by the Wests slow recovery from the Great Recession and, add- ing to the problem, both countries have struggled to implement reforms at home to boost productiv- ity and consumer spend- ing. But signs of stabilization have emerged in China, the worlds second-largest I ndonesia approved a new regulation eas- ing the export tax on mineral concentrates for miners planning to build a smelter in Southeast Asias IurgesL economy, u hnunce mInIsLry omcIuI suId. TIe hnunce mInIsLry regulation on the export tax has been signed, said Deputy Finance Minister Bambang Brodjonegoro. In January, Indonesia imposed an escalating tax policy, which penal- Sumanta Dey Adriana Nina Kusuma and Randy Fabi economy, which grew by a slightly-faster-than-ex- pected annual 7.5 percent in April-June, thanks to a raft of government stimu- lus measures. Chinese manufactur- ing expanded at its fast- est pace in 18 months in July, according to a pre- liminary HSBC survey of purchasing managers on July 24. However, economists in the Reuters survey con- ducted from July 17-23 were wary about pushing growth forecasts much higher. They now expect the Chinese economy to grow 7.4 percent in 2014, a modest increase from the 7.3 percent predicted in April, according to 44 respondents. They expect growth to slow to 7.2 percent next year. That underlines the IImILed eecL LIuL gov- ernment stimulus meas- ures have had so far and reecLs worrIes LIuL u property market slump could worsen and hurt the broader economy. Chinese exports rose 7.2 percent in June from a year before, lower than expected. They were up only about 0.9 percent in LIe hrsL IuII compured with a year earlier, com- pared with year-on-year growth of close to 10 per- cent in January to June 2013. The mini-stimulus measures have helped to support growth in the second quarter but we see some downside risks stemming from a prop- erty market correction due to oversupply and un- certain external demand, said Jian Chang, an econ- omist at Barclays in Hong Kong. Economists in the poll also cut 2014 growth fore- casts for India, Indonesia, the Philippines, South Korea and Thailand while Australia and Malaysia were predicted to expand at a slightly faster pace. The forecast for Thai- land was cut the most after months of political turmoil that led to a mili- tary coup in May, as well as the continuing weak- ness of exports. Its econo- my is expected to grow by just 1.8 percent in 2014, down from the 2.6 per- cent forecast in April. The Thai economy is then seen expanding 4.0 percent next year. Most other economies are also expected to perform slightly better in 2015. For India, economists penciled in 5.3 percent growLI Ior LIe currenL hs- cal year, down from the 5.5 percent seen in April. For now, they fail to share the enthusiasm of investors for the new gov- ernment of Prime Minis- ter Narendra Modi. His landslide election win two months ago has helped send Mumbais Sensex in- dex up more than 24 per- cent this year. Most Asian countries have begun increasing exports to the United States as its economy has rebounded following a dismal start to 2014 but orders to the euro zone, China and regional trade partners have stagnated or slipped. Despite the pick-up in exports to the U.S., emerging market ship- ments excluding those from China have yet to rise broadly, said David Hensley, an economist at JP Morgan. HIgI InuLIon In LIe re- gion has limited the scope for any easing in mon- etary policy and almost all major central banks in the region are likely to hold interest rates steady until the end of next year, resisting pressure to stim- ulate demand. Only the Bank of Korea is expected to cut its base rate, by 25 basis points to 2.25 percent sometime in the third quarter. In contrast, both the Federal Reserve and the Bank of England are ex- pected to raise interest rates by the middle of next year, although the ubsence oI wuge Inu- tion there could delay any move. The outlook for Asia was, however, better than for Latin American economies, where Brazil is seen managing just 1.1 percent growth this year. Reuters Indonesia Eases Mineral Export Tax for Firms Building Smelters ised any company which had not made progress on building a smelter by slapping them with a 25 percent tax on copper concentrate exports or a 20 percent tax on lead, zinc, iron and manganese shipments. The tax was due to increase annually to 60 percent in 2017. The tax was intended to force miners to develop smelters and mineral pro- cessing facilities and part of a government push to derive bigger returns from Indonesias min- eral resources. But rather than pay it, most miners stopped exporting from Southeast Asias biggest economy and one of the worlds top mineral pro- ducers. The government also banned the export of un- processed ore, and that ban will remain in place. Reuters Myanmar Summary Myanmar Summary A man watches share prices on an eIectronic stock board at a security rm in Shanghai. B lo o m b e r g Joko Widodo, Indonesias president-elect. 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'~ q:. .,.~._..:.q,._. .~ .~.._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 15 Myanmar Summary Fleeing Migrant Workers in Thailand Delay Rice Shipments R ice prices in Thai- land, the worlds second-biggest ex- porter, will probably ex- tend their gains because of shipping delays as mIgrunL workers ee uI- ter the military coup, the Thai Rice Exporters Asso- ciation said. As many as 70 percent of the workers involved in loading grain at ware- houses and moving it to vessels have left the country, Chookiat Ophas- wongse, the associations honorary president, said. That could delay deliver- ies by as much as three weeks, he said. Thailand is set to ac- count for 22 percent of global rice exports this year, US Department of Agriculture data show. More than 200,000 work- ers from neighbouring countries left Thailand Supunnabul Suwannakij since the military seized power on May 22 amid fears of a crackdown on illegal labor, according to the International Organi- zation for Migration. The military denies ordering such a move. Thai rice prices have increased to a three-month high. Were now facing prob- lems of severe labour shortages and tight sup- plies, which will boost prices in the short term, Chookiat said, predicting that rates may increase by as much as $20 in the next two months. Thai 5-percent broken white rice, an Asian benchmark, climbed for a third week on July 18, adding 1.5 per- cent to $398 a tonne. A supply shortage after the military halted sales from state stockpiles is also bolstering rates, Chookiat said. The army stopped sales and curbed movement of grain to review the quality and quantity of reserves built up through a state buying program started in 2011. Inventories rose to 14 million tons from 5.6 mil- lion tons three years ago, USDA data show. Excess Suppli es Ample stockpiles in Thailand and competition from Vietnam will curb gains, said Kiattisak Kan- layasirivat, a Bangkok- based director at Ascend Commodities SA, which trades about 500,000 tons of rice annually. As prices rise, demand for Thai origin slows. Buyers will seek cheaper sources like Vietnam. While prices for 5-per- cent broken white rice in- creased for the three weeks leading up to July, they have declined 9 per- cent this year because of excess supplies in Thai- land and India. Only about 500 tonnes of rice a day can be load- ed now, compared with 2,000-3,000 tons nor- mally, Kiattisak said, referring to grain bought from Thai exporters for shipment to Africa. Ive never seen such slow loading before. The ship- ment could be delayed by a month. The National Council for Peace and Order, as the junta is known, aims to solve the problem of illegal workers, Air Chief Marshal Prajin Juntong, the head of economIc uuIrs, suId. TIe council expects migrant la- bor will return to Thailand because of high demand, he said. Loadi ng Bags Workers load bags from warehouses onto lighters and onto vessels at ports, said Sermsak Kuonsong- tum, director of Chai- yaporn Group, an export- er, and association vice president. The loading rate is about 300 tonnes a day now compared with 1,500 tonnes normally, Serm- sak said. The country has a mi- grant worker population of 2.23 million, including 1.82 million people who entered the country il- legally, according to the Department of Employ- ment. Of the total, 1.74 million are from Myan- mar, 395,000 from Cam- bodia and 96,000 from Laos. 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August 7-13, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 16 Myanmar Summary Co-host Myanmar Global Investment Forum J6-J7 September 20J4 Myanmar International Convention Center 2, Nay Pyi 1aw, Myanmar In partnership with the Myanmar Investment Commission (MIC), the 3rd Annual Euromoney Myanmar Global Investment Forum will be held again in Nay Pyi Taw on 16-17 September. Join us this September, to meet with over 800 international and local business leaders, policymakers, fnanciers, and economists, who will share their outlook as the Golden Land continues its dramatic re-emergence into the international community.
Recent developments such as the easing of economic sanctions, a liberalising fnancial sector, and strong activity in agriculture and trade, have contributed to raising Myanmars international profle as an investment destination. Some key topics will include: Myanmar's Year in ASEAN Banking and Financia| Reform Infrastructure and Power Specia| Economic Zones (SEZs) Rea| Estate and Urban P|anning Agribusiness and Rura| Deve|opment Energy Deve|opment For more information or register, please visit our website: www.euromoneyconferences.com/myanmar or email us : rsvp@euromoneyasia.com Supporting Organisations Charter Sponsor Lead Sponsors Co-Sponsors AMCHAM MYANMAR CHAPTER India Threatens to Derail WTO Deal, Prompts Angry US Rebuke I ndia threatened on July 25 th to block a worldwide reform of custom rules, which some estimates say could add $1 trillion to the global economy and create 21 million jobs, prompting a US warning that its de- mands could kill global Lrude reIorm eorLs. Diplomats from the 160 World Trade Organiza- tion member countries meeting in Geneva had been meant to rubber stamp a deal on trade fa- cilitation that was agreed at talks in Bali last De- cember In LIe WTO`s hrsL ever global trade agree- ment. But India, in an 11th- hour intervention, de- manded a halt to the trade facilitation timetable until the end of the year and said a permanent WTO deal on food stockpiling Frank Jack Daniel & Tom Miles must be in place at the same time, well ahead of an agreed 2017 target date. My delegation is of the view that the adoption of the TF (trade facilitation) Protocol be postponed till a permanent solution on public stockholding for food security is found, Indian Ambassador An- jali Prasad told the WTO meeting. The ultimatum revived doubts about the future of the WTO as a negotiat- ing body, and many dip- lomats said Delhis stance could derail the whole process of world trade lib- eralization. It is no use to sugar coat the consequences of such action or to pretend that there would be busi- ness as usual in the after- math, US Ambassador Michael Punke said. Today we are extreme- ly discouraged that a small handful of members in this organisation are ready to walk away from their commitments at Bali, to kill the Bali agree- ment, to kill the power of that good faith and good- wIII we uII sIured, Lo Ip the lights in this building back to dark, he said in a statement. Modi has vowed to spur economic growth through sweeping changes to poli- cies that many people felt had stagnated under the outgoing administration, and his every step is be- ing closely monitored at home and abroad. Reuters Cars, pedestrians, carts and motorcycles move down a congested street in Mumbai. B lo o m b e r g . ~~:. . . :. .q. ~ ..'.: ~. ., .., ~ .~~ .. . _. . ~. . ~~ ..| . ~ ., . ., e, ~ ..... ._ . ~ ~: . .. :..q. _._. ._.: .. . .:. ~ . ~ . .. : e ~ ._ e ~.e .~ _...._.:~.:. ..q..: ~,.e. _._. ._.:...q. ..,.._~. ~....~ .~...._~:. ~..q~,_._.:.~ .~ ....~._. .q:~ ~.e ._~, .e.q. ..:.....q. .e:..:. ~.,~e:.~ e...~,.~ .q..~: ~.,~~. ~.:.~.: ...:_...q:WTO ~_. ~....:~_.~~.q.~ .. .~.~:...: ~~ .::..~~:.~ .:..: ..:...: ..~.q, .~:. .:.._. . ~...~:...,. ._~: -............. .~_e. .~:_..:..: q~..~..' ..e.:. ..'..|~.:_.. ...- q.~_.~.: ~,.e.q. ..,.. _~.....~~.... ~ .~...__e.._~:. ~e.:..e~.:..~ .:. _~._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 17 Myanmar Summary Myanmar Summary Investors Pin Growth Hopes on US as Ukraine Crisis Casts Shadow on Europe W ith the prospect oI sLIer sunc- tions against RussIu ruLLIIng conhdence in Europe, investors will be looking to the United States and China to un- derpin the global econo- my. The recent US GDP reading and jobs data will help markets to judge the strength of the economys rebound and the likely speed of the Federal Re- serves return to more conventional monetary policy. The Fed meets on Tuesday and Wednesday. The US-China story is looking more encourag- ing, said James Knight- ley, an economist with ING. With the European Central Banks moves, that should allow the euro zone economy to swing upwards but with a good six- to 12-month lag. In Europe, the downing of a Malaysia Airlines air- liner over eastern Ukraine has left countries such as Germany with little choice but to change their long-passive stance and impose tougher sanctions on Moscow over the role of pro-Russian separa- tists. Early in the week of July 27 to August 2, European Union ambassadors met Lo hnuIIze suncLIons LIuL could include closing EU capital markets to state- owned Russian banks, placing an embargo on arms sales and restricting John ODonnell supply of energy technol- ogy. Globally, such sanctions would bite hardest in Eu- rope, where Russia does most trade, compound- ing economic problems not only for Russia, but throughout the region. The International Mon- etary Fund has already ugged LIe 'cIIIIIng eecL` on investment in Russia of sanctions as it pared back its forecast for global economic growth in the week of July 20-26. Conhdence umongsL businesses in Germany, which accounts for more than one quarter of all ex- ports across the European Union, has dipped further since the plane crash. An escalation carries large risks for the econo- my, he said, cautioning in particular of the knock Lo conhdence. TIere Is a big risk from further sanctions although one has to accept that clear (diplomatic) signals are needed. Bounce-back The crisis comes at a delicate moment for the 18 countries using the euro, wIere u edgIIng recovery is losing pace. Investors will get a snap- sIoL oI LIe bIoc`s Inu- tion rate, which has sunk well below the European Central Banks target last Thursday. With Britain, one of the stronger European econ- omies, caught up in the push for mutually painful sanctions against Russia, economic growth pros- pects hinge on the United States and China. We think there is go- ing to be a bounce-back in (US) GDP, said INGs Knightley. The Reuters consensus shows annu- alized growth picking up to 3 percent in the April- June quarter. Data from Beijing is ex- pecLed Lo conhrm CIInu`s economy picked up in July after government moves to boost lending to busi- ness, such as reducing the amount of cash banks must hold in reserve. Chinas economy grew at 7.5 percent in the sec- ond quarter. But the drags on growth, including a downturn in property prices and high local gov- ernment debts, are simi- lar to those in Europe. Analysts believe that deeper reforms, such as overhauling giant state companies, will be needed in the long term to keep the economy growing at the pace the authorities want. That keeps the focus on US Federal Reserve and how fast it will run down the stimulus that has pumped cheap mon- ey around the world, prompting investors to take increasing risks. The Fed gathers on Tuesday for its two-day meeting but no change of course is expected yet. In early July, Feder- al Reserve Chair Janet Yellen signaled that she would keep the central banks purse strings loose unLII LIe eecLs oI LIe h- nancial crisis are com- pletely gone. But some analysts say the central bank may be forced to take a stricter approach to avoid pump- ing up market bubbles. People worry that the Fed may raise interest rates earlier than expect- ed, Nie Wen, an analyst with Hwabao Trust in Shanghai, told Reuters. He predicts a rise in inter- est rates as soon as early next year. Michael Heise of Allianz warns that keeping mon- ey too cheap for too long carries a major risk. If the central banks stay too accommodative for too long, you can have a boom ... and it can come to a massive correction. In a reminder of the del- IcuLe buIunce IucIng hnun- cial policymakers, Argen- tina will seek next week to reach agreement with in- vestors suing the country for full repayment of their bonds. President Cristinas ernundez`s unIncIIng stance would appear to indicate that the country Ireland to Give Green Light for Hedge Funds to Lend Carmel Crimmins I reland, one of the big- gest hubs for funds in Europe, will allow hedge funds based in the country to lend to com- panies under new rules drawn up by the central bank, the bank said. With banks in Europe still reducing their lend- ing to households and corporations in the wake oI LIe hnuncIuI crIsIs, hrms wIo ure Loo smuII Lo issue bonds are increas- ingly seeking to borrow from other sources such as insurers, private equity hrms und Iedge Iunds. Ireland has traditionally prevented hedge funds domiciled in the coun- try from lending because regulators viewed it as too risky. But with access to credit a growing prob- lem in Europe, the central bank has drawn up regu- lations that will allow spe- cialized loan funds that it authorizes to extend loans internationally. In our view this is a sector that should be sub- ject to some additional regulation, said Martin Moloney, head of markets policy at the Irish central bank. If you have loan origi- nation funds operating out of Ireland and lending into other countries there are potential cross border issues. We wanted to deal with that upfront and we have been very focused on LIe hnuncIuI sLubIIILy Is- sues. The central bank is drawing heavily on new regulations devised to prevent a repeat of the banking crisis to regulate funds which lend money. Under the rules, a loan fund will not be able to lend more than a quarter of its assets to one bor- rower and the amount of debt the fund can take on will be capped at a ratio of 1 to 1, meaning that if a fund has assets of 100 million euros it can bor- row another 100 million euros. The move by the Irish central bank comes as the European Central Bank and the Bank of England are trying to resurrect the European Unions market for asset-backed securi- ties as a way of getting credIL owIng Lo smuIIer businesses and plug some of the gap left by banks. Reuters will go down to the wire. If talks fail, Argentina fac- es its second default in 12 years. Reuters A n d r e y
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O h s u m i/ B lo o m b e r g .,..._~:... ANA ._ e_...:. _.~~.: _ . .. ~~ q .. ._ . . . . . : .~.._._..:..:__.,.: ..._~:... Asian Wings - qee: , q:..,.~ ~eeq, ..:..~:. e~ ....~._~:. .q._. _.,.:..._~:....e:. .:.. .....:.~_~:.e _...: _..,.:_ .~~,. ~~._.~.,.:. ._.,.: ._.:...:_..._~: .. ~. ~. .. ~ . , ~q . ..: . ... .~ .:.~ _., ._ . , _ ...:..q._~:. ANA ~ . ._. ~. , ~ ..:~ _ .~ .: _.,.:~._..~..._~:. . .~. . ~ . ~~:.. ._~: ...~ q..._...._ ... . ~. ~. ~_ e. .~~..~.._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 19 Myanmar Summary David Mayes T here is a large but very illiquid asset class that falls un- der the broad category of passion investments. A passion investment can be unyLIIng Irom hne watches and jewellery, classic cars, art, wine, comic books to trading curds. TIe wIoIe hve mIn- utes spent on the topic during my academic stud- ies essentially amounted to a warning to stay from them. Yet many people have experienced great returns in this asset class. In my opinion it is a very personal choice if invest- ing in passion assets is a good or bud hnuncIuI de- cision. LIInk LIe muIn dIer- ence stems from asking yourself the following question. Are you per- sonally passionate about what you are consider- ing investing in or are you considering investing in it because you know other people are passion- ate about it? While this doesnt seem to make a bIg dIerence uL hrsL, IL cun meun LIe dIerence beLween u prohLubIe or losing investment. The main reason is that due to their illiquidity and rarity, it is extremely dif- hcuIL Lo puL u IuIr vuIue Pros and Cons of Passion Investments onto passion investments. This gets compounded if you dont have the same specialist knowledge of the sector as the person on the other side of the Lrude. L Is very dImcuIL Lo obtain that knowledge if it is not a true passion of yours. The caveat here can be that too much passion sometimes clouds your judgement. That classic car you have dreamed about since childhood may sway you to buy it at a price that does not re- ecL good vuIue. OI course a great upside of that kind of scenario is that you may end up stuck holding onto something that you truly love. In that sense a hobby expenditure be- comes the result of a passion investment gone wrong. On the other hand, I would avoid passion in- vestment funds like the plague. Even though ac- cording to the Coutts Pas- sion Index the asset class has outperformed shares in the last decade, a run on a fund invested in pas- sion assets could result in a disaster of epic propor- tions. By the very nature of the fact that a lot of the value is derived from the passions of people inter- ested in them, liquidat- ing a portfolio of watches, cars, or comic books in any timely manner would be near impossible with- ouL u nusLy hre suIe wrILe down. Further on the issues surrounding the illiquid- ity of this asset class, I would strictly limit the percentage of your net worth tied up in passion investments to about 10 percent. If your business is closely related to pas- sion investments and it is your main expertize then this number could be slightly higher, but even then you should separate your personal net worth from the success or fail- ure of your business. This is practical advice regard- less of the industry. Passion investing at- tracts many people due to the fact that it can be a lot more fun than prob- ably any other form of investing. They are also a lot more fun to show your friends than a statement from your broker show- ing which shares or funds you hold. The downside is that they are illiquid, and if you are a novice you will surely get taken advantage of by the many sharks in the game. How- ever, if you truly have a passion for some of these goods and know your sLu, LIe reLurns cun oc- casionally be very good. David Mayes MBA provides wealth man- agement services to ex- patriates throughout Southeast Asia, focusing on UK Pension Trans- fers. He can be reached at david.m@faramond. com. Faramond UK is regulated by the FCA and provides advice on pen- sions and taxation. Thailand to Allow Companies to Raise Money for Overseas Projects T hailand plans to al- low companies to raise funds locally for infrastructure projects in neighbouring countries such as Myanmar, Laos and Cambodia. The regulator will ap- prove rules as early as this quarter for so-called In- ternational Infrastructure TrusLs Lo hnunce LIe con- struction of power plants, tollways and other public works, said Vorapol So- catiyanurak, secretary general of the Securities & Exchange Commission. Several Thai and for- eign companies have ex- Anuchit Nguyen pressed InLeresL In oer- ing infrastructure trusts, he said. Thailand, Southeast Asias second-biggest economy, has been pro- moting itself to neigh- bours with less-developed capital markets as a place for raising funds. Army chief Prayuth Chan-Ocha, who seized power in mili- tary coup on May 22, has said he will boost invest- ments in projects along the nations borders to increase trade. The three neighbours accounted for less than 4 percent of Thailands international trade in 2013. Laos, Myanmar and Cambodia will require a vast amount of funds for the development of their infrastructure, Vorapol said. The trusts help serve those needs and will be an attractive investment option, he said. Laos raised 1.5 billion baht ($47 million) by sell- ing sovereign bonds to TIuI InvesLors Ior LIe hrsL time in May 2013. Com- panies such as Banpu Pcl (BANPU), Thailands big- gest coal miner, CK Power Pcl (CKP) and Ratchaburi Electricity Generating Holding Pcl (RATCH) are building power plants in Laos that will supply electricity to Thailand. Gunkul Engineering Pcl (GUNKUL) has power plant projects in Myan- mar. The new trusts will be backed by revenue from the infrastructure pro- jects in those neighbour- ing countries. At least 70 percent of the total con- struction must have been completed for compa- nIes Lo geL hnuncIng, suId Vorapol. Vorapol said he expects state-controlled compa- nies such as Airports of Thailand Pcl, Electricity Generating Authority of Thailand and Expressway Authority of Thailand to launch initial public of- ferings for infrastructure funds. He declined to pro- vide a timeframe. Bloomberg Myanmar Summary A passion investment can be anything from ne watches and jeweIIery, cIassic cars, art, wine, comic books to trading cards. H a n s
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August 7-13, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 20 Bangkok Bank Touts Bringing Investors from Around Asia to Myanmar M ore than 100 prospective in- vestors inter- ested in doing business in Myanmar recently joined the Bangkok Bank Brings Asia to Myanmar event in Yangon. The organiser, Bangkok Bank, brought in local businesspeople from vari- ous industries, including food and beverages, ag- riculture, construction, tourism and hotels, auto parts, plastics and chemi- cals, and design and d- cor. We are organising many activities to support the countrys economic May Soe San development and help our customers get to know the countrys potential and connect their busi- nesses here, Bangkok Bank President Chartsiri Sophonpanich said. We were one of the lead sponsors of the Myanmar Global Investment Fo- rum, which was held in Nay Pyi Taw. We took our SME customers to Myan- mar to explore business opportunities. We have held various seminars about Myanmar for cus- tomers, businesspeople and the general public in Bangkok. The event also included a visit to the Thilawa Spe- cial Economic Zone and local markets, and a semi- nar that featured speakers from both Thailand and Myanmar. Knowing that we have had a representative of- hce In Myunmur Ior cIose to 20 years, customers of our overseas branches, especially from Japan and Singapore, have been asking about Myanmars development and pros- pects, Chartsiri said. Some of them are keen to travel to Myanmar to witness our development themselves. This trip was intended to help sup- port our existing custom- ers overseas so that they cun Ieurn hrsL-Iund Irom knowledgeable speakers about the business pros- pects in Myanmar. The bank aims to engage in every permitted bank- ing operation, including providing loans, if it can receive one of Myanmars highly-coveted foreign banking licences, Chaiyrit Anuchitworawong, ex- ecutive deputy president, said. Bangkok Bank is one of 25 banks shortlisted by the Central Bank to operate in Myanmar. If selected, it expects to pro- vide lending services and Iocus on hnuncIuI servIces for imports, exports and transactions, Chaiyrit said at the event. The shortlisted banks are from South Korea, Japan, India, Australia, France, China, Thailand, Malaysia, Singapore, and Vietnam. The Myanmar Central Bank is expected to grant licenses to 5 to 10 banks in September, where the selected banks will be limited to one branch and permitted to only operate wholesale banking ser- vices. Although the entrance of foreign banks will pro- vide technical support to LIe hnuncIuI sysLem, IocuI banks need support and protection from the Cen- Myanmar Summary tral Bank to avoid a col- lapse of the domestic sys- tem, a local banker said. Established in 1944, Bangkok Banks total as- sets as of March were over $75 billion. It has more than 1,150 domestic branches and an interna- tional network of 27 over- seas branches. Bangkok Bank opened a represent- uLIve omce In Myunmur In 1994. Chartsiri said: Our long-established pres- ence in Myanmar means our people on the ground have been working for us for a long time, know their markets well, and are ideally placed to sup- port customers and inves- tors particularly in the growing economies of Southeast Asia. Our focus is to pro- vide services that meet the needs of our custom- ers, namely Thai cus- tomers growing their international presence; multinational businesses with whom we have had a long and productive rela- tionship, such as our Chi- nese customers in Hong Kong, Taiwan, Singapore, Indonesia and Malaysia; and local customers in countries where we have a base. Myanmar Investing in A Far Frontier F rontier investors have been excited by the opening up of Myanmars market since its quasi-civilian govern- ment came to power in 2011, after nearly half a century of military rule. But investors also com- plain that there is very lit- tle to invest in. This one is a deep frontier there is no real stock market, and investors have tended not to go directly into local companies. Myanmar is seen as ripe for business expansion, given only an estimated 30 percent of the popula- Carolyn Cohn tion have access to elec- tricity, for example. And the IMF predicts growth of 8.5 percent in the coun- try this year, one of the fastest growth rates in the world, due partly to rising gas production. London-listed All Asia Asset Capital recently in- creased its holding in a Myanmar and Thai-based power generuLIon hrm and is also invested in a Thai hospitality and gam- ing company which has a resort across the border in Myanmar. Frontier investors across the globe look for annual double-digit re- turns in long-term in- vestments such as private equity, though there can be transparency risks in these small, unlisted com- panies. In this new mar- ket of Myanmar, the re- turns could be especially attractive, says Sri Hartati Kurniawan, All Asia Asset Capitals CEO, who sees potential returns in My- anmar among the best in the region: We are aiming for 20 percent a year we are coming in early. We are taking into consideration we are investing in a fron- tier market, there are cer- tain risks associated with that. Myanmar is rushing to catch up and make itself attractive to international investors as a place to do business, Kurniawan adds. There are a lot of things going on, a lot of property development, infrastruc- ture development, they are building new roads I was surprised myself. Hotels are quite good for business people. But for portfolio inves- tors restricted to listed companies or debt, My- anmars borders remain closed. According to Wells Far- go fund manager Antho- ny Cragg: There is quite a lot of private equity in Myanmar, such as oil and gas and agricultural prod- ucts. But there are no di- rect listed plays. Carolyn Cohn works in London as part of the Reuters investment strat- egy editorial team, spe- cialising in emerging and frontier markets. Myanmar Summary Delegates pose for a photo at the Bangkok Bank event in Yangon. B a n g k o k
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E lia s / R e u t e r s ween watershed and de- pend on the river for jobs and nutritious food, ac- cording to WWF. These minorities are al- ready neglected in China, Myanmar and Thailand, said Pianporn Deetes, campaign coordinator for environmental group In- ternational Rivers (IR) in Thailand. There is no spotlight on the area and its easy for investors to exploit it. The voices of the marginalised ethnic (people) who will bear the cost of the dams are not heard, she said. A petition with over 33,000 signatures call- ing for a halt to the dams was released on March 14, the International Day of Action for Rivers and against Dams. Campaign- ers also raised awareness during the ASEAN Peo- ples Forum in March, an event bringing together civil society from the 10 countries that make up the ASEAN regional bloc. Two months after that, the building of Kun Long dam was discussed in (Myanmars) parliament, and it sounded like they are going to go ahead, said Saw Thar Phoe of Ka- ren Rivers Watch (KRW). Whether they dont hear us or they are not listen- ing, we do not know. In September 2011, My- anmars President Thein Sein suspended the Chi- nese-led Myitsone dam, Myanmars largest hy- dropower project, after weeks of public outrage. Myitsone is located at the source of the Ayeyar- waddy River, considered a lifeline for the country. For the ethnic groups in the east of Myanmar, the Salween plays the same role as the Irrawad- dy, said IRs Deetes. Legal challenge? Carl Middleton, a for- mer campaigner with IR who now lectures at Bangkoks Chulalong- korn University, said it was highly likely people living along the Salween wouId be worse o uILer the projects both mate- rially and culturally. While promises are often made from dam developers to support af- fected communities, the track record in the region for livelihood replace- ment programs is not good, said Middleton, who is organising a re- search conference on the Salween in November. Given that the Salween dam deals were signed with the Burmese junta, who ruled the impover- ished Southeast Asian counLry wILI un Iron hsL for almost half a century, Myanmars new quasi-ci- vilian government should reconsider them, cam- paigners say. There is no river basin authority and no agree- ment between the coun- tries on how to develop and sustain the river, however, and activists are now mulling a legal chal- lenge. In June, a Thai court ac- cepted a lawsuit against the government-owned Electricity Generating Authority of Thailand (EGAT) and four other state bodies for agreeing to buy electricity from a controversial hydropower dam being built in neigh- bouring Laos. Activists say the Xayaburi project threatens the livelihood of tens of millions who depend on the rivers re- sources. Even if we cannot stop LIe dum, even II LIey hnd other buyers or funders, its unprecedented that transboundary impacts ure now omcIuIIy recog- nised. Were working with the same group of lawyers Lo prepure sImIIur sLu for the Salween dams, said IRs Deetes. EGATs international arm is involved in at least two out of the six planned Salween dams in Myan- mar. Thomson Reuters Foundation
There is no local participa-
tion, no transparency and no benefit to the local peo- ple. The dams just lead to more fighting and human rights abuses, and villagers have to relo- cate. _., .:. .. ~ . ~~ _~ ..q:...:. ..~.,._: q .:.. .:~.~ ~, .~ .q...q:...:.._ ~:q- ~_~ .. ._.. .:. . ~. . _e. ..:. . _.. -_., .:_._ ~ . ~.~~...:.~ .q~:~: .:. ..:~..q, ...,_.. ~:. . ~ . . q, .~ . .. ... . .~q._. ~ ~ ~ , ._. _. ~ _.. e:.. ..: . . _.. ._ ~.q .~: ~:q ~ . ~ e~q _ . ._.. _e. _.. ~q_ ,~~ ~..~:., q ~: ~, ~ .. _., .:. .:.~ _e~ _ ~~ .., . .e . ..~_.. _.,.:.-.... ~ .q ..:.....:.~ .~ ~ ~ .....:.._. ~,~ .. _.,.:q... _.....:. ....|.~_.: .,..: .q~:~:_~.._.:~. ._ .....:.- ~,:~. . . _ .. ~ . ....- _ ~e ~ ..: -~. .~...~ _... ._.:~ .~ q ._~: . ~~ _~ . . q:...:.~ .._._. .._..~~..~._. ~,~.~ .q~:~: ~, . ~_ ..:~ q, . . .~ q ._ . . . ..| .. . .~ ~ . . . .|~. ~,~~~ .,q._ .q~:~:.:.._ .~ q ._ .~ _e. . :.q:. _e. . :.. q:....:. ~ ~_ q _. ..:~~q .~_.. .:. ~ e . .. . ~~ ~ ~. .q . ~ .q ..:..~ ,~ ~ .:. ~_~:. ~~..:. _.,._..' ..|~ ..e~ ~._..:. ~: .~q..:q~.,..: . ~. _ . ... ..q..e: ..: . ..,...:.~:. .~. ._~:. ..q...:.q.,._. _ ., .: ~. . . ~: . :._ . .q~:~:. . ~ , .. :. ~ .|~.~.~.~q _.. ~..:. ~...:._.. ~q:..~.. . ~ _ . . ._ .. . .e . .:.. . . .:.~.. . .... . :.~ .q~:~:-qe:.:.q .... ~.~~~,..:.~ .~.. .~ q ._~: .. ., ~ . .:.. :._ ._. . .._.:~ . q._~: . q . .. ~q . . q :.. ~e .:.~ .._. _. ~..._ .... ~.:...:._. ~,~.. . .:. ~ . ._ _e. _. . .~ .~..~_..:...: _.,.: .~~~ ~,_.e.:~, .__e._.. ~.e.....~. q ..:..:.. :._ . .~ e ..: ..: _.._~.. .:~.~~,. ~ ~ _e ~, q. . ._ _e. ._ . .._...: .~....|e:. ~q.~ ~_q_..~.|~~ ~._~:.._~:.._~: ,.- .q: .q ._~ ._e. ._ . ..| _.. ~ . . ,_ ._. . ~._..., . ..q._. ._,_.._. . ~ .~: . ,_.. ~ q ..:. .:.. :.:_.:.~.:...|~ ..: ...|.._.:~.,..,.: .. .q.~.q. ...~ ~.~ .. .~. ..~: .. ~:e:q ~~~ ...,_~._. . ,_ .. . :.. : ~, ~ _ ., .:. .. ~ ~ .. . , . .,q._~: . .. q . ~~:_...:. (IR) .:~ .~~, .~ . q:~e ~. ._. .q~:~:.:. ~_ ..:~ _. .. .. :.. , ~ . . _.. ._~: ~. .. :~ ., . . :..: ,...~q.q: e.~.... ~q.| ._..q:..: .~.q .__e.._~:. IR ~e~ .e:. ~:....e~,~ . ._ . August 7-13, 2014 Myanmar Business Today mmbiztoday.com 22 INVESTMENT & FINANCE Curbing Money Laundering: Acid Test for Myanmars Financial Reforms L ast year Myanmar was urged under in- ternational pressure to make progress with anti-money laundering eorLs. n June, LIe I- nancial Action Task Force (FATF), a watchdog group that monitors interna- tional money laundering, LerrorIsL hnuncIng und other related threats to the integrity of the inter- nuLIonuI hnuncIuI sysLem, announced Myanmar has sLIII noL mude sumcIenL progress In prevenLIng h- nancial crimes due to the lack of improvement of its anti-money laundering regime and lack of pro- gress in implementing its action plan. Therefore, Myanmar re- mains on the list as one of the countries listed with sLruLegIc dehcIencIes In anti-money laundering und LerrorIsL hnuncIng on par with Indonesia, Ecuador and Algeria. Due to the absence of a viable banking system, many Myanmar citizens particularly emigrants remitting money from other ASEAN countries to their family in Myanmar have relied on informal money transfer mecha- nisms, such as the hundi system in India. How- ever, underground bank- ing systems have their disadvantages, including the lack of enforcement. Informal money transfer systems remain a vital lifeline for rural families who live far from any bank and depend on mon- ey sent back from family Stefanie Siegfried & Franziska Doepel abroad. In addition to legisla- tive reform, there is also need for more awareness of possible laundering umong omcIuIs und work- ers uL hnuncIuI InsLILu- LIons und u hrmer grusp of how to recognise the sIgns oI possIbIe hnun- cial crimes. Without new reforms Myanmar could be vulnerable to money laundering and become a safe haven for illicit trans- ucLIons und oLIer hnun- cial crimes. On March 14, a new law came into force in order to counter money laun- dering. However, Myan- mar still faces numerous cIuIIenges In curbIng h- nancial crimes. The 2002 anti-laundering law con- tained loopholes and was not in line with interna- tional standards. But even with the new law and the money laundering moni- toring system, Myanmar continues to demonstrate weakness and there re- mains numerous ways to circumvent the law. The new anti-laundering leg- islation provides for pen- alties of three to seven years imprisonment and u hne oI Koo mIIIIon ($500,000) for money laundering convictions. It is also the latest in a series oI hnuncIuI reIorms LIuL aim to make Myanmar a more reputable invest- ment destination. But new anti-laun- dering measures aside, some of Myanmars other projected reforms could have the unfortunate con- sequences of attracting would-be money launder- ers. For example, casinos have long been a feature of some of Myanmars ethnic militia-controlled borderlands close to Thai- land and China. Gam- bling dens function as a revenue source for groups that have fought against LIe mIIILury on und o for the last seven decades even though they remain banned in areas under government control. If regulations are to change to allow the legal opening of casinos and gambling stations, they must be in alignment with the FATF. Further, new regula- tions are essential to pro- tect Myanmars economic reform process and the countrys acceptance in LIe InLernuLIonuI hnunce sector. Currently, the Asia Green Development Bank (AGD) case is a litmus test for Myanmars bank- ing and monetary system. The case became public after up to 60 percent of AGD Bank changed hands from prominent entre- preneur U Tay Za and his Htoo Group of Compa- nies, severing direct own- ership ties with the bank. U Tay Za, the founder of AGD one of the largest privately-owned banks in Myanmar agreed to sell 60 percent of the bank to late General Ne Wins three grandsons Kyaw Ne Win, Aye Ne Win, Zwe Ne Win. After the secret multi-billion dollar pur- chase of AGD Bank, U Tay Za and the Htoo Group of Companies are no longer on the shareholders list. By suddenly pour- ing in more than $4 bil- lion, which Ne Wins three grandsons claim is a friendly interest-free loan from state-owned CIInese InvesLmenL hrm China National Cor- poration for Overseas Economic Cooperation (CCOEC), into Myanmar they caught the attention of the Monetary Investi- gation Department, now investigating on this case. A proper and thorough investigation can show- case the growing strength of Myanmars banking and monetary system to the public and the global community. It can be said that with the enforcement of the new anti-money laun- dering law, Myanmar is showing its willingness to follow up on its reform scheme and to provide a stable basis for economic and legislative reform to strengthen its position as a destination for invest- ment that adheres to in- ternational standards. Strohal Legal Group (SLG) is c lcu jrm oger- ing highly personalized services specializing in international and cross border business. SLG en- joys a well-established reputation across Europe, Southeast Asia and the Middle East. In Myanmar, SLG provides services un- der the name U Min Sein & Strohal Associates Law Firm. The views and opin- ions expressed here are the authors own and do not reject Mcnmcr usiness Todays editorial opinion. Myanmar Summary Myanmar Summary MPT Eyes Faster Internet for Users M yanmar Posts and Telecom- mu n i c a t i o n s (MPT) will work together with Japans KDDI and Sumitomo Corp to pro- vide high-speed internet service to its users, an of- hcIuI suId. TIe Lwo Jupunese hrms will expand the state-run companys communica- tion networks as well as work with MPT in the Kyaw Min coming months to up- grade the internet infra- structure to provide faster services, U Khin Maung Tun, general manager of MPT, said. We are planning to lower the sale price of land lines and expand our network to popularise us- age, he said. On the client side, products with various data usage allowances will be marketed to pro- vide more options to our customers. No.2 Japanese wireless carrier KDDI and trad- ing house Sumitomo said last month that they had reached an agreement with MPT to jointly un- dertake telecommunica- tions operations in Myan- mar. The joint operations touted Japanese-quality services of the highest lev- el in the world in mobile und hxed IIne communI- cation. It is estimated that less ~ . . ._~ .e , ..:.. ~. . _., . , ._. ~ ~:,~ ~, ..: . ..._....,.~..~ _.,.: .~ . e .q.. . , .~.,_e ., ~ . ~ . . . _e. ._ KDDI . . . ~ . .~: . .q.q .~ . ...| ._..: q ~ . :.._ _e. ._~: . _., .: .~ . e .q.. . , . . ~. . ., ., : ....:..~ ._ .:._. ., ~ . ~ . . . _e. ._ KDDI . . . ~ . ~ ._ ~. .|. . , . ~ ..:q~q,~~~ .~ . e .q.~ , q~ .:. ~ .. ..: q ~ . :.._ _e. ._ ~_. .~ q ~ ~:,~ . .~ _ ., . , . .:..:_.._ ~~:,~.. ~ .. ~, ..: . .... q, ~~ ~ ._ . .. .~~ . ., ~ . ~ ...~.,_e _ .,.:.~.e .q.. . , .. . ...| .~: ..: q~.:..__e.._~:. ~. ..,.,: ....:,.~ ._.:._. ~_. _.,.:.~.,_e Network ~. .~ ~ .. _. . ..: q ~q,.:~.q._~.._ ~~~~_.:._. ~ .~: ..q ~:.:.~ . . .:. , ._ e e .., ~ . ~ . . . . .q ._. than 10 percent of Myan- mars population has ac- cess to internet with most using antiquated ADSL networks. 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. Through the joint opera- tion with KDDI and Sum- itomo, MPT hopes to gain an edge in the emerging competition with foreign telecom giants, Ooredoo and Telenor. _.,.:.~ .._~..~|.. ~ ~ e~ .q.. . , ..:. _. ~ ..: q ~ q, _. .. ._ . . ~ . ~~:~e ~:..... _~._ . e. . . ~ , .~ . ~~: .._~..~|...:. ~_~..e~ ~e ~._ ..:~ . . .:.. ~_.:.. ~~:. ._~.~_ . ._ .. ~ . ~ ..._ ~. q:e .:.~:. ..: _ ~_ .q.~e . ._~.. . q :.. . . , .~e (FATF) ~ _.,.:.~ . ._~..~|.. ~ ~ e~ .q.. . , . ~.~~..q_... ..,.~. ~..:..e:..:..q_..~ ._ ~: . ._ ~.q:~~~ . .:. ~:._..q:~ ~.~~... ..:~..:~.q._~:. ~ _.,.._. ._ ~: _ ., .:. ._ ~.,.q:. ~.~.|. ~e. q.e:.~ . ~, .~ . ._~..~|. . ~ ~ e~ .q..e:-e:. ~. .~ q .,..: . .:. ~ ~..~.|~~_e..,._. ~ . . , ..,. ~:.,_ .. ._~: _._ ..q:~ _., .:. . .:..:. ._ . . . q:~ ~ . eq e , . . . .,. ~ . _. .. . . . , . .:.~ ~:.~ ..,q._ ..~..~ ....:.~ ~ . ~ :.~...: ~q. .:._., _. ._._ .. .:.. ~.:.~...:.._~.~ .. .,q._ . .:.. .:.~~ ~ _. . . . . . , ..,. . : ~.~ .. . ._~:.ee_e..,._. .~. ~, q~~. .._~..~|..~ ~~e~q, .....~.. .~~.~~.:.._. . q:~ . ._~.q:~~~ . .:. ~ ..:..q, .,..'..:..: q.,_..~~ . . . . ._~..~|. .~~e~.q.....:e..|~ .:._e _._ .,._ . R e u t e r s August 7-13, 2014 Myanmar Business Today mmbiztoday.com PROPERTY & REAL ESTATE 23 Myanmar Summary Marga Banks on Myanmar Reforms to Foray into Property Development E conomic growth and political re- form in Myanmar continues to drive foreign investment, which ac- cording to DICA topped $492.62 million in the hrsL quurLer oI LIe currenL hscuI yeur - drIvIng LIe market for luxury proper- ty and mixed-use real es- tate development. Despite the fact that rent contin- ues to balloon for the av- erage Myanmar citizen and the expat community, in what many analysts be- lieve to be an unsustain- able bubble, Myanmars demand and thirst for luxury accommodations continues to rise. These large-scale devel- opment projects boast the creation of properties that meet international stand- ards to accommodate the changing face of Myan- mar, which now attracts not only the international business executive but also Myanmar diaspora und un Inux oI gIobuI tourists seeking a high quality, unique and opu- lent accommodations and experience. Amid rapid economic growth, the backdrop is forming for the developing real estate and property market, which positions Dagon Center 1 among the top competitors. Dugon CILy 1 - LIe ug- ship project of Marga Landmark Development Company is a 22-acre high-end, mixed-use property development that boasts a luxurious lifestyle experience in the heart of Yangon. Designed and built to international standards, Dagon City 1of- fers a branded retail zone, A-grude omce compIex featuring the latest tech- noIogy, u hve sLur IoLeI, Aundrea Montao and luxury serviced apart- ments to tap the expanding business environment and increasing tourist arrivals. Marga Landmark Devel- opment Company a joint venture between the global syndicate, Marga Group and Thu Kha Yadanar, a Myanmar company cre- ated the ambitious plans for the exclusive Dagon City 1 property, which will be located in downtown Yangon at U Htaung Bo Circle. Marga is yet to an- nounce when they will break ground on Dagon Center 1. The luxury property is expected to cost approximately $300 million and is expected to be compIeLed wILIIn hve years of breaking ground. As one of the earliest investors in China, Dr Stephen Suen, chairman of Marga Landmark De- velopment Company, said the growth and reform process of Myanmar is tremendous and unique compared to the opening of China. hnd LIe speed oI growth in Yangon much faster than that of China in the early 1990s, Dr Suen told Myanmar Busi- ness Today in an exclu- sive interview. Dr Suen said he remem- bers when he bought his hrsL pIece oI Iund In CIInu. I only received a small piece of paper to prove that I was the owner. The land law was only in its infancy and there was no contract law, lawyers or dispute mechanism. With rapid political re- form and economic liber- alisation starting in 2011, and while the country still needs to pass the Condo Law and Mortgage Law two pieces of key legis- lation directly impacting the development of lux- ury mixed-use properties Dr Suen believes Myan- mar is poised for contin- ued dramatic growth. We already know the Condo Law is in the pipe- line. I think the Mortgage Law is held up because the balance sheets of My- anmar banks continue to lack adequate capital. However, this is a soft issue and will likely be resolved when foreign banks are allowed to op- erate in the country. According to Dr Suen, Myanmars ability to con- duct simultaneous politi- cal and economic reform has made the country a favourable destination for foreign direct investment. While reforms and eco- nomic liberalisation con- tinue, it presents a great foundation unseen in any other emerging market, including China. Dr Suen also sees the government demonstrating immense political will and capability in producing change that will last into the future. Margas project demon- strates the dominance of Asian investors in Myan- mar. The countrys largest foreign investors are com- panies from Singapore, Hong Kong, Japan, South Korea, and, of course, China. While western countries, in particular the United States, remain hesi- tant to invest in the coun- try, partly due to a belief that reforms have stalled, investors from Asian coun- tries have no qualms with the countrys political and economic trajectory. Beyond LIe benehLs oI political and economic reform, Dr Suen believes Myanmars strategic lo- cation makes the country a prime location for ex- panded investment and he plans to ramp up in- vestment in the country. WILI InLeresLs In hnunce, t el ecommuni cat i ons, and agriculture, he did not specify what form of future investments he might make. Myanmar is a very good location because it shares a border line with three big economies: China, In- dia and the ASEAN states. It has easy access to the region, and is home to nearly half of the worlds population, he said. TIe hrm suId IL Is com- mitted to impact invest- ment and contributing to Myanmars social de- velopment. The develop- ment of Dagon City 1 is expected to employ over 5,000 individuals. The company has also committed to direct two percent of its annual prof- its towards corporate so- cIuI responsIbIIILy eorLs in education, the support of elderly populations and Buddhist programs. Dr Suen seeks to multiply investment impact by en- couraging other investors to enter Myanmar for the benehL oI mIIIIons oI peo- ple in the country. Dr Stephen Suen, Chairman, Marga Landmark Development Company. K y a w
M in _.,.:.-...:..q.. . .q._._. ._.: .. . .:.~_._ . q .. ._. . . . .:.~ ~ , .~:.... .~q_.. .~q_:.q... ......~~~. ..'.: , ... ' .,..,qq. ._~: . . q~: ~. _. ~ . _. ._.. ~...~._.._.~_ .:..:.~ _.~~...~ q._. ..:.,.~ _.,.:. .:..:. _._.. .:.q:~.. ~..:.~~~ .qq_,. :..._.e~e .,.... .:.~ ......: :.q... .... , .. .e: .. : .~ .~ _. ~~ .,..:._. ~._. ~ . . ~ . q:. ~. .~ . :. .~ .~ _ . ~~ .:.~ q ._ . . _., . :e _e ..,..:. .. :. .q..,:~ . ~._.~.,~ ~ . _. ._....~~e_e..~ ~:.... .,_.. Dagon City 1 ~:.._. ~.~: .. .e _. . ._ . . ~ , ..:. . ~. . ~_e. ~ , .. . . . . ~ q ._ . Marga LandmarkDevel opment Company -~.~..~,._e. ..: Dagon City 1 ._ -~ ~e ~, ...: ~. _. ~ . . .~ . q:. . ~ , ._e. _. . q, ~ , -~.~ ~.:~..: ..: ~~ .~, .~ ~. _...,.~.~~,.~ _e_ ._.....__e.._. Dagon City 1 ~ ,:._q . . , ..:..|~ ._ .~ . .q:...q.~, .~~.,..,. .:. _~e|..e~e~... . ~ . . ~. _. ~ . ., ..:. .| ~ ._ _ e. ~: . ~~: ..,._~. Marga . _.,.: ~.~ ..q~,:~ ~~.~ ....|...:q~.,_.. ~q. ~.. ..'.: .,. ,~~ ., _ ~ q._ e ., . , .:.._. q, ~ , -e _ e . . ~e , .: ~~ .~:...:.~ ~,~ ~q...: ~q,~e,~ .:.. :. __., ., ._~: . Marga Landmark Development - ~_ Stephen Suen ~ . ._. _.,.:.~ ~... ~. _. ~ . q:.:..e: ..: . ~:. ~~,~.~.q:~.. ._ ~ , . .... ~..| ... ~ ~ .:q, . .,.....: ._. _.,.:._ ~.~._.~ . _., . :e _e.~ .~~ q, ~. ._e..,._e ,.~ e. :.._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com 24 August 7-13, 2014 Myanmar Business Today mmbiztoday.com AUTOMOBILE 25 Myanmar Summary Myanmar Summary Toyota Clings to Global Sales Lead Over Volkswagen T oyota Motor Corp. hung onto a slim global sales lead over Volkswagen AG (VOW) In LIe yeur`s hrsL six months as rising U.S. demand for SUVs paced a hrsL-IuII record. Deliveries for Toyota, including its Hino Motors Ltd. (7205) and Daihatsu Motor Co. units, climbed 3.8 percent to 5.1 mil- IIon veIIcIes In LIe hrsL half, according to a com- pany statement. By com- parison, Volkswagen has reported sales of about 5.07 million units, includ- ing results for its heavy- truck units. Japans largest listed compuny Ius benehLed from U.S. buyers desire to drive sport utility ve- hicles, which are on pace to outsell sedans in the murkeL Ior LIe hrsL LIme. Rising deliveries of the new Toyota Highlander and Lexus GX drove U.S. market share gains as Volkswagen posted sales declines and pledged to introduce a mid-size SUV in 2016. Craig Trudell and Masatsugu Horie Theyve gotten so good at building products that really hit with custom- ers, said Jim Press, a for- mer U.S. sales chief and 37-year Toyota veteran who now consults for the Renault-Nissan alliance. Contrast that to Volk- swagen: they dont have LIIs murkeL hgured ouL. Theyve failed to succeed in North America because they dont really under- stand it. Even so, Volkswagen is closing the gap with Toyota. The German au- tomaker reported about 2.57 million deliveries for the April-to-June period, excluding results for its MAN SE and Scania AB units, which topped Toy- otas 2.51 million vehicles sold in the quarter. Both companies remain ahead of General Motors Co. (GM) uILer LIe hrsL sIx months of the year. The result was surpris- ing, Yoshiaki Kawano, a Tokyo-based analyst for IHS automotive, said of ToyoLu hnIsIIng uIeud oI VoIkswugen uILer LIe hrsL six months. The nega- LIve eecL Irom LIe rIsIng tax rate wasnt as big as we assumed. Their sales should be aided by the U.S., where the economy is good and consumers tastes are shifting from traditional sedans to pick- up trucks and SUVs. In the U.S., deliveries of Toyotas Highlander SUV surged 17 percent this year through June, while sales of the RAV4 crosso- ver climbed 15 percent. The automaker also more than doubled deliveries of its refreshed Lexus GX SUV. Including more fuel-ef- hcIenL, cur-IIke crossover models, SUVs accounted for 36.5 percent of U.S. new-vehicle registra- tions this year through May, compared with 35.4 percent for sedans, re- searcher IHS Automotive said this month. Sedans, which held the top spot for decades, had led 36.6 percent to 33.9 percent a year earlier. SUV Advantage Toyota and Lexus SUV models outsold Volkswa- gen and Audi by 7-to-1 in the U.S. this year through June, according to re- searcher Autodata Corp. To revIve uggIng suIes In the worlds second-largest auto market, the Wolfs- burg, Germany-based company plans to add a seven-seat SUV to its line- up in 2016 and build the model at its Tennessee factory. Toyota and Volkswagen both have forecast more than 10 million deliveries for 2014. Toyota sold 9.98 million vehicles last year to lead the industry for the second consecutive year, followed by Volkswagens 9.73 million and GMs 9.71 million. Bloomberg Costoms to Conscute Lncluimed Aotos ut Port T he Customs De- partment is going to implement a new policy beginning on Sep- tember 1 for automobiles that have been kept at the port for more than 60 duys, un omcIuI suId. The automobiles that ar- rive at the port, before an Kyaw Min import licence is issued or updated, are allowed to be kept at the port tem- porarily. However, auto- mobiles stranded at the port for 60 or more days ure conhscuLed und IuLer auctioned. Previously, cars that were listed for auction could be withdrawn through an appeal pro- cess. But the [process] will be scrapped and the Customs Department will seize all cars left at the port for more than 60 days, U Nay Say, mem- ber of the Customs Clear- ance Representatives, told Myanmar Business Today. Vehicles seized by the Ministry of Commerce and the Customs Depart- menL wIII be uucLIoned o with the proceeds being added to the state budget to support development projecLs, omcIuIs suId. While car dealers said the Customs Department is acting within its regu- lations, they added that some car showrooms are forced to keep their cars at the port as they face space problems. In cases where the cus- tomers cancelled orders, and the showroom did not have any space for more cars, the showroom could not pick up the au- tomobiles from the port, said Ko Lin Sat, manager of Neon Car Showroom. Imports of about 2 mil- lion automobiles have been permitted during the 21-month period from October 2011 to July 2013, according to the statistics of the department. After introducing an automobile replacement campaign in October 2011, the Customs Department conhscuLed 1qq,z;6 uuLo- mobiles from the port until JuIy z, uccordIng Lo om- cial data. _._ .. ..: .~: e: ~ . . . .:.~.,_ e . . ~. .~ q~._.:~.e~ .~:., .~: :.q ..:..: .~: e: .:.~ ~.~:~ . , .. ._:,. .~~: ~ q~.,. .~ ~: ~_. ._.~ . . .._ .. :.._ _e. ._~: . ~.~:~ . , q .. . .q.~e.:..e~e. ~e~ ..,...~ ._.:._. .~~: ~ q~.,~ .~ ._ .: . . .~ ~ ._ _.. .~ .:.~q _.. . _. ._e. _. . . . .|.. . _..~ .q. ~ , .. _ ..:.~ .q:~ _ . . ~ , .. _ . .:. . q:~ q _ . . . .. .|.._...~qq_.. ~~~~ ..~..~ ..~ :.q.qq.__e._.. 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S c h if f m a n n / B lo o m b e r g e. . . ... . ~~ ~~ . SUV ~:.~e.~:. _.~~ .:.._~: Toyota ~:. ~.~.: ....~~~~. . ~~:~:..q: .. . ~ Volkswagen AG ~ ~,_ .e ~.:_e ...: ., ._~:. .q._. e .. ...: ~:. . e~ . . . , .. .:.~.|~~ ~ e ~: ~:..:..q ._.: .. ..: ... ..: , ... q:..,. ~ . ~~ .:_ ... . ~~ ~~ . ~. ..q ... ~ ., . q.:._~:. .q._. .. e.~~q Volkswagen SG ._ ~:._~..:.~.|~~ ...q ... ~ .,..q:.. .q._~:. .q._. .,.- ~_~... ~.~ _e...: ~e~:.: ~..q ~,~e..:.~ ~... ~:..:.~ ~e e . .:. _. ~~ .:_..._~: ~~.~_.~qq ._.._e.~: ~..q~,... ~~~ e.~...~:. .:.~ ....~_~. .. ~:..:.~ ._ .q:.q._ ~._.~.,. .~_ .,._~: . .q._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com 26 IT & TELECOM Viber Focuses on Myanmar As User Base Shoots Up to 5 Million in Three Years I attended the media event held by Viber in Yangon last week. Viber is the mobile mes- saging company that was bought over by Japanese e-commerce giant Ra- kuten for $900 million early this year. The team led by Crys- tal Lee, Viber country manager for Philippines, showed impressive Myan- mur murkeL sIure hgure from OnDevices research published in June: Andrew Tan Vibers user base has increased exponentially from three subscribers in February 2011 to 5 million subscribers in July. Reinforcing the message that Viber will always be free for internet call and group chat. Crystal em- phasised that keeping the user interface simple, easy to use and adver- tisement free is the main reason why Viber has per- formed exceptionally well in Myanmar against its much larger rivals such as Whatsapp and Wechat. Of course it helps that What- sapp and Wechat require subscribers to authenti- cate their mobile number via international SMS which at the moment can- not be received by mobile users in Myanmar due to the archaic telecom infra- structure. This situation will change soon as the two new telecom opera- tors Telenor and Ooredoo launch their mobile net- work and challenge the somnambulant ex-tele- com monopoly MPT. Viber is hoping to mon- eLIse ILs hve mIIIIon sub- scribers base by working with third party develop- ers, m-payment platform and operators to promote its premium stickers download service. While still maintaining a pool of basic stickers that are free to download for the Myanmar market it will look to aggressively increase its revenue via premium services that are chargeable. The challenges Viber face in the Myanmar market are: poor telecom The Viber Internet messaging and calling service application is displayed on a smartphone. S i m o n
D a w s o n / B l o o m b e r g infrastructure, slow inter- net speed, dysfunctional banking system, low pen- etration of credit card and unavailability of online payment system such as PayPal or Alipay. TIe ubove InemcIencIes create challenges for for- eign companies in many industries that want to capitalise on the eco- nomic reform and growth potential in Myanmar. It is especially daunting for big companies that have existing business model that works in big coun- tries like China, US and Germany but are not will- ing to make adjustments for emerging markets like Myanmar. I believe the smaller and agile team from Viber may have a better chance of making mobile mes- sugIng u prohLubIe und growing business in My- anmar than their bigger rivals. The fact that they have showed up in My- anmar before the telecom market has opened up and has already gathered hve mIIIIon subscrIbers Is a testament of the speed and determination of the company. I hope that this time next year, we will be invit- ed by Viber again to hear how they have managed to make Myanmar their mosL prohLubIe murkeL In LIe AsIu PucIhc. Andrew Tan is the Managing Director of Consult-Myanmar Co Ltd. Consult-Myanmar is a Yangon-based Sin- gapore-owned company that is incorporated in Myanmar. Consult-My- anmar provides busi- ness advisory, business partner search, company incorporation and immi- gration service to foreign investors that are inter- ested to start a business in Myanmar. Myanmar Summary MPT Launches Discounted Promotional Service S tate-run telecoms services provider Myanma Posts & Tel ecommuni cat i ons (MPT) launched a one- month friends and family (F&F) campaign last week oerIng ILs cIIenLs Lo con- nect with their families at a discounted rate. The move came only a few days before Ooredoo, one of the two foreign telecoms licence winner, launched its mobile ser- vIces - becomIng LIe hrsL ever international service provider in the Southeast Asian country. The friends and family special promotion cam- paign will run until Au- gust 31st. Prepaid card users of GSM and WCD- MA mobile phones will be able to register and enjoy Zwe Wai discounts, MPT said in a statement. When registered, a cus- tomer will be charged a one-o subscrIpLIon ruLe of K2,500 and K25 per minute for registered numbers for 30 days after registering. One can list up to three phone num- bers. TIe oer Is vuIId Ior only GSM and CDMA SIM card holders; MPT said it is also trying to of- fer the same for CDMA in the near future. To subscribe, custom- ers have to send a free-of- charge SMS message to 1331, typing ADD fol- lowed by a space and the desired mobile number to register for the discount. Customers can get the promotion details from a dedicated MPT help line at 1876. Myanmar to Cooperate With Foreign Software Companies M yanma Com- puter Company (MCC), Myan- mur`s IurgesL CT hrm, will cooperate with Ger- many-based SAP in order to promote IT sector of the country. Liher Urbizu Sierra, managing director of SAP Indochina, and chair- man of MCC Group U Tin Win Aung signed an agreement on the use of SAP Enterprise Resource Planning software in Yan- gon last week. SAP North Consulting Group, which produces en- terprise solutions to Micro- soft, Oracle and other com- panies and MCC Group, Aung Phyo will now provide service of enterprise resource plan- ning software to the ICT companies of Myanmar. n 1q86, MCC sLurLed o us LIe hrsL ever compuLer training school in Myan- mar and later incorpo- rated Myanma Computer Co Ltd in 1989 to expand into other ICT-related ac- tivities . Myanmar Summary Myanmar Summary _.,.:.-~_~... ICT ..,..~.._e.._ _.,.: ~,.~:~.~ MCC ._ :.,~._..~ SAP ~.~ . . -.~ .~.~ ~.~ .~.e.q. ,_.._:~_ .:. e_e.~.~~q, ....|. ..: q ~ . :.._ e . q._. SAB - ~...,:.... . q: ., ., ..| , ~ ~: Liher Urbizu Sierra . MCC ~ . . -~ _ .~ ~ ..~: ~ ._ SAP . . , .- Resource Planning Software ~_.:. ..~q, .,.._~.~~ ..:~ .~ . ~ .q. .. _~ ._. SAP North ~~ . . ~ . . ._ Microsoft . Oracle ~.~.~.:.~~~ ..,. .:...: q ~ ....,._ ~ . ~ _e._.. MCC ~..._._. e .~ . ..: q ~ . :.._ _e. ._ . _., .:~ , .~:~ . ~ (MCC) ._ ~' ...~ _.,.:._ ....~,.~: . ~, ..~: .e . . . ._ ~.~_e.._. ~. .q. . .~, ..: . ..,.~.~_e.._ MPT ._ ,.~-~.q:._.~ .q.~.~...~..~.,_e . e . .. . .:.. ~ .:.~ ~..~~. ..:....,._e e,...'..._~.~... ~..~.~.._~:. .q ._. ~..|~.~.._ _._. .~ . e .q.~ . ~ ~ q . .- . .. .~~ .:..~ .q: .. . _. .._ ~. , ~ ..' ~ .: . _. ._e. _. . . .:.. . . e . . ~ .~.q: ._. ~ .q.~. ~. ._ _. ~ . ,~ q~ .,..~ ._.. _~~._e_~~ ~. ._. ._ GSM . WCDMA . .e , .~. ._ . . .:.._ ~..|~.~.. .:q... .|~ . .__e. ._~: . . q._ . .,.. ~~:,~.q:. ~e.e:~~:..q..e:..,. _~. Rakuten ~ e...~..: ..~ ..'.: .,. ~~ _e ~ee...: ..~~:,~ e , ...'. . . .~ .. .... . ~.~ -:. _.,.:.~ _. .. ._ ~.~ ~. . e:. .~ . .~...~,:.~...._. ~~~ . . . .e.e: ~| q . ~~ .~ ........:q. q:. ~~, ~.~ -: .... |..,.~ ~e_., .:. ._ . ~.. . ~,:. ~ -:. ~~:,~e,...'.. . ~ . . e . ~ ~ ._ .:. . ~, ..: . . :.~ ~_ . ~. . ~.. _e_ ._ .....,._ _e. ._~:. e...q -: ~.~ ..,.,: Crystal Lee ~ ..~~__.._.: _~:. ._. ...._..~q._ .~.:.:.~..:.~._. q. ...:_e ...q.e~..: . . .~ .~ :. q . :. ~: ._~:_:_...._.q._ .e~._~:. ,.~ .~: e.~.~.:.._~: -: ._ _ . ~ . :. _ e. ..: Whatsapp . Wechat ~~ _.,.:.~ ._ .~:..,.: q.~_._.._e. ._~:. .q._. August 7-13, 2014 Myanmar Business Today mmbiztoday.com IT & TELECOM 27 F irst shown to the public at the Con- sumer Electronics Show (CES) in January, the 105-inch Curved Ultra HD TV from LG Electron- ics (LG) became available for pre-orders last week in Aung Phyo LG Announces Start of Sales of Curved Ultra HDTV South Korea. The Ultra HD TVs cin- ematic 21:9 aspect ratio LCD screen features 11 mil- IIon pIxeIs, hve LImes more than on a Full HD TV, the South Korean electronics giant said, adding that with such a high pixel density, images are rendered with a sharpness and clarity that is lifelike. The 105UC9 achieves its picture quality through LGs True 4K Engine Pro and IPS 4K Panel True 3K Engine Pro eliminates visual errors and can up- scale lower-resolution con- tent into near-Ultra HD quality, while the IPS 4K Panel provides consistent contrast and a wide view- ing angle. The vision behind LGs 105-inch 21:9 Curved Ul- tra HD TV was to bring the movie theatre into the liv- ing room, said Min Park, managing director of LG Myanmar. Featuring a curved 5K CinemaScope screen and a 7.2 channel speaker system, the 105UC9 is LGs most spectacular ULTRA HD TV yet. This product pushes the envelope in home en- tertainment innovation and demonstrates what is pos- sible when you bring todays most advanced TV technol- ogies together. LGs TV delivers audio through a built-in 7.2 chan- nel, 150W sound system, incorporating LGs Ultra Surround concept and de- veloped in partnership with premium audio products manufacturer Harman Kar- don. The curvature of the display has been carefully calibrated to maximise the immersive ambiance. When viewing programs in 16:9 format, the unused screen space on the sides can dis- play additional information or programming details to enhance the viewing experi- ence. The LG 105UC9 will be rolled out in other markets from the fourth quarter, LIe hrm suId. PrIces und exact dates of availability will be announced locally. Myanmar Summary Myanmar Summary Dealers Soft-Launch Ooredoo SIM Cards in Myanmar Mandalay, Nay Pyi Taw see sales of SIM Cards way above ofcial price M obile products dealers in Man- dalay and Nay Pyi Taw began selling Oore- doo SIM cards and top- up cards on Tuesday last week, several days ahead oI LIe omcIuI AugusL z launch of Ooredoo services throughout Myanmar. Local Myanmar language newspaper The Voice Daily recently quoted Ooredoo Myanmars public rela- tions manager, Thiri Kyar Nyo, as saying that Oore- doo services would be launched nationwide on August 2. Ooredoo has remained silent on whether these sales are a part of their of- hcIuI IuuncI LImeIIne. AccordIng Lo un omcIuI press release from Oore- doo, the launch is expected to be sometime in the third quarter of this year. And recently, Ooredoo sales di- rector, U MyintZaw, told Mizzima, Our SIM cards are not for sale yet. However, Myanmar Business Today has dis- covered that mobile prod- ucts dealers in Mandalay and Nay Pyi Taw have al- ready begun selling Oore- doo SIM cards and top-up cards, with prices rang- ing between K1,500 and K7,000 far above the of- hcIuIIy sLuLed prIce ceIIIng of K1,500. Thiri Kyar Nyo was un- able to comment on these Jacob Goldberg sales, saying only, We are hIIIng up our dIsLrIbuLIon channels by providing SIM cards and top-ups to deal- ers. She also said that more deLuIIs wouId be oered uL a press conference in Yan- gon on Saturday, August 2. U Pyi Soe Htun, direc- tor of the Lu Kyi Min mobile products shop in Mandalay, told Myanmar Business Today that he received a delivery of 800 SIM cards from Ooredoo on Tuesday, and he began selling them the same day. He has set aside 200 SIM cards for individual sales, wIIIe Ie Is oerIng LIe resL free to customers with the purchase of handsets. He said that Ooredoo SIM cards come with 20 free megabytes of mobile data until August 15, plus 900 free minutes and 900 free text messages to other Ooredoo users, in addition to 90 free minutes and 90 free text messages to MPT users. U Pyi Soe Htun also ex- plained that Ooredoo does not allow dealers to place additional orders of SIM cards until 80 percent of their original stock has been registered with the provider. However, SIM cards can- not be registered until after Ooredoo`s omcIuI IuuncI. This means that until Ooredoo`s omcIuI IuuncI, there will be a limited sup- ply of SIM cards available, even though demand re- mains high. Earlier this year, Oore- doo Myanmar CEO Ross Cormack told the Oxford Business Group, Working in partnership with other industry partners with proven track records will allow us to provide low cost smartphones and meet the promise to provide SIM cards at a retail price rather than a black market price. However, this limited re- lease of SIM cards seems to be making it possible for some deuIers Lo seII sIgnIh- cantly above retail price. Nyi Nyi Zaw, a Mandalay resident, said she bought her Ooredoo SIM card yes- terday for K5,000 and saw others for sale for as much as K,7000. These prices are still well below the current black- market rate for SIM cards oered by sLuLe-owned Myanmar Post and Tel- ecommunications (MPT), which can range between K80,000 and K100,000. Outside of the black mar- ket, MPT SIM cards are distributed only by lottery. Many question whether this limited release of SIM cards in Mandalay and Nay Pyi Taw was orchestrated by Ooredoo, and if so, why it was not publicised. Ooredoos silence has led to some speculation that LIe hrm Is uLLempLIng u soft launch in Mandalay In order Lo LesL LIe eecL oI anti-Muslim sentiments in the cities on sales Oore- doo hails from the Muslim country of Qatar. In June, a group of radical Buddhist monks called for a boycott of non-Buddhist products and services, which some believe is gaining traction. TIe uvuIIubIIILy oI uord- able SIM cards has been highly anticipated since Qatars Ooredoo and Nor- ways Telenor won a com- petitive tender last year to be LIe hrsL prIvuLe mobIIe service providers to en- ter the Myanmar market alongside MPT, which also plans on releasing its SIM cards for general sale in partnership with Japans KDDI. A woman shows a sim card from Qatars Ooredoo after buying it from a phone shop in Yangon. S o e
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August 7-13, 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 FD 252 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 AirAsia FD 251 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 AirAsia FD 254 1 2 3 4 5 6 7 RGN DMK 17:30 19:10 AirAsia FD 253 1 2 3 4 5 6 7 DMK RGN 16:20 17:00 AirAsia 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 AK 505 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK 504 1 2 3 4 5 6 7 KUL RGN 06:55 08:00 AirAsia AK 503 2 4 6 RGN KUL 19:30 23:45 AirAsia AK 502 2 4 6 KUL RGN 17:50 19:00 AirAsia 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 KKo ong (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 August 7-13, 2014 Myanmar Business Today mmbiztoday.com IT & TELECOM 29 Myanmar Summary Myanmar Summary These Two Social Networks Will Make You Money F acebook recently reported massive earnings for the past three months, claiming it rakes in almost $1 billion every 30 days. But for all that generated, none of it ever touches the us- ers pockets, something a handful of entrepreneurs are looking to change. In July, two new social networks launched pub- licly with the same goal: to put money in the pock- ets of the users with the best content. Both Bonzo Me und BubbIews oer unique ways for their us- ers to make a buck for the content they share. Bonzo Me dishes back to users up to 80 percent of the advertising revenue on user generated posts, the Associated Press re- ports. The iOS, Android, and web app launched earlier in July and has a few thousands users who Joey Cosco altogether have netted around $30,000. Bubblews began a beta version of the service in September 2012 and clocked around 200,000 users uILer omcIuIIy launching two weeks ear- lier, the AP says. This app gives users one penny for every click, like, or com- ment their posts score, but only in $50 chunks. No one should come to our site in anticipation of being able to quit their day job, Bubblews CEO Arvind Dixit told the AP. But we are trying to be fair with our users. Social networks dont have to be places where you feel like youre being exploited. This could not only be a dig at Facebook, but also at sites like YouTube, which pays its partnered users with sliding scales it doesnt like to break down into detail. If anything, the two apps are more like Vine, whose top earners largely make money by acquiring and plugging sponsors into 6-second videos. With Bonzo Me and Bubblews, however, the advertisers are already there, leaving only content decisions up to users. That makes for a diverse selection with Bubblews users posting diary entries, recipes, phone reviews, and even thoughts on the inner workings of the Bubblews community. With the recent shut- downs of various writing websites, like Yahoo Con- tributor Network, I think this has also contributed to the rise of accounts. I think this has a possibil- ILy oI goIng Lwo dIerenL ways, Bubblews user &Bellatricks wrote. I really hope that more people will equal more money and not the other way around. Business Insider F lic k r / C o u r t n e y
C a r m o d y Ideabox Myanmar to Bring Together Students and App Professionals to Drive Future Partnerships I deabox Myanmar an- nounced the launch of AppBus and ideabox App Competition 2014, two initiatives designed to kickstart the mobile application ecosystem in Myanmar. AppBus and the AppBus Competition 2014 aims to encourage greater inter- action between students and professionals work- ing in the mobile appli- Kyaw Min cation industry, Ooredoo Myanmar, which is be- hind Ideabox, said. The objective of App- Bus and the ideabox App Competition is for us to introduce students to the heart of the mobile tech- nology and digital services industry in Yangon, said Kaung Sitt, co-founder of ideabox Myanmar. Innovation is critical to us all staying ahead of the wave of technological advances in the mobile industry. Nowhere is this more true than in Myan- mar where the country is currently leapfrogging into an era of new tech- nology. This tour and compe- LILIon oers u greuL op- portunity for students to get a real-life glimpse into the lives of software developers and entrepre- neurs here, so they can expand their understand- ing of what future career options are available to them. Late last month an Ap- pBus hosted up to 15 stu- denLs on Myunmur`s hrsL ever mobile application technology enthusiasts tour of Yangon technolo- gy startups, including vis- ILs Lo LIe omces oI TecI- nomation, Rebbiz and Code2lab. During the AppBus tour, participants met the founders of Myanmar mobile application de- velopment companies to hear about the idea gen- eration process behind the development of these apps. Additionally the app de- velopment competition aims to give students and working professionals the opportunity to work on digital service ideas they are passionate about. Submissions for ide- abox App Competition 2014 will close on Sep- tember 29 at 23:59, and all entries should be sub- mitted via email at app- scomp2014@i deabox. com.mm. Only Android apps will be accepted, while the apps will be judged based on usefulness, functional- ity, technical sophistica- tion and commercial vi- ability. O o r e d o o
M y a n m a r Ooredoo _., .:~ ~_ .: ...: IdeaBox _.,.:._ App Bus . IdeaBox App 2014 _..~~ .~.~_. _e.._~:. .q._. .~ ..:q~......._ _.,.: _._~ .. App ,e.e ~.~~_e.,..:q, q_qe ~:.._e .q._. IdeaBox _., .:~ . .~ ~_ .: ._ ~ .~: . .. ~ . App Bus , IdeaBox App _. . .~ q ~. ~q_ . , ..~ ~.~: q, ~ , . :q.,~ . . ,_.._:~,..:....q: ..,..:.q -e.~, .~:. .:..~ ~ . ~ .~ ...e .|. . . ,_ . ._:..:~e: ~..,.ee ._.,.:~.~~ .,~:. .,...~....q ..: ~,.~:~.q~.,._.. ..:.|..~q _.,.:_._.: ~..~:.,_.. ,_.._:.. .~ ~ .~~ .,~:. . ~.q._~ . .|~e . ~. _.. . ....e ~. ~....~q ..:e~.q..:. .. .,.~..:.q ~ .~~ .~:..:..:. ...: . qq . :_e. _.. ~,:~ . : .~ ~~~ _e.,...'..|~.: ._ ~.:.~.:~. ~.q..:. ~ ..,:.._.:_e..|~e''e ._.:_~:..._. Facebook ._ _...._ ...~~. ~...:~ _..:..:qq.._~:. ~_., ._.. q~ ,~ ~. ~. ..'.: ~..e qq._~:. ._~_::.._. ~..~~.~ ..~, q~...._ ~.~:... ~_...:._.....: .... .:. .._~.qq..._ q_ qe.~~ ..q_~:.~ .e: .~.._. Bonzo Me . Bubblews~......_ ,.~-.....:. ~_...:. _..._ ~.qq..q, ._.:. ..:,_.....:. e,~.... :.._. Bubblews ~._. ~.._...:.~:. ,.~- ~_..q..:...:. ~:. _~_,. Like... ..e~ . ~ . ~ . . . . ~. . q q ~ . . ~. . qq ..._ ~, ..: . e, ~ ....:.._ . August 7-13, 2014 Myanmar Business Today mmbiztoday.com SOCIAL SCENES 30 Launching ceremony of 2014 Taiwan excellence campaign in Myanmar Walter Yeh, Executive Vice President, Taiwan External Trade Develop- ment Council (TAITRA). Walter Yeh, Executive Vice President , Taiwan External Trade Development Council (TAITRA), gives his speech at the event. Chiu, Director of Economic Division, Taipei Economic and Cultural Of ce in Tailand, giving a speech at the event. U Tein Han , Vice President of UMFCCI, gives a speech at the event. Delegates pose for a photo at the event. Delegates pose for a photo at the event. Event of CB Banks Agent Banking Ah Yaing, master of ceremony at the event. Htun Htun Minn Dr Aung Tura , CEO of Tura Swiss. Htun Htun Minn Ni Ni Khin Zaw. Htun Htun Minn U Kyaw Lwin, executive vice chairman & CEO of CB bank. Htun Htun Minn U Myo Myat Tu, project director of Forever group. Htun Htun Minn Viber & the Vibrant Mobile Communication Landscape in Myanmar Crystal Lee(L), Philippines country manager. Anthony, Zagar communications. Crystal Lee, Philippines country manager. August 7-13, 2014 Myanmar Business Today mmbiztoday.com CLASSIFIEDS 31 August 7-13, 2014 Myanmar Business Today mmbiztoday.com 32 ENTERTAINMENT New Khiri Tour Links Two Ancient Kingdoms in Myanmar A new six-day adventure trip between Bagan and Mrauk U is for travellers who are comfortable with no electricity or phones along the way K hiri Travel Myan- mar has launched a trip that links the two ancient kingdoms of Bagan and Mrauk U in Myanmar, the Bangkok- based tour company said. TIe hrm suId IL Is LIe hrsL Lour operuLor Lo bring travellers to the Mrauk U area via this challenging route to the far west of the country through the Chin and Arakan ranges. TIe sIx-duy LrIp oers fantastic scenery, remote Chin villages, planta- tions, jungle, boat rides, two days of reasonably strenuous hiking, and a glimpse into a rich living history that few people outside of Myanmar have seen. Edwin Briels, Khiri Travel Myanmar general manager, describes the facilities during much of the trip as basic local houses with mosquito nets and blankets, and washing facilities either at the communal well or Aung Phyo in the river. Food will be simple local dishes prepared by the guide. After Bagan, highlights include a 4WD trip through dry mountain riv- erbeds where there are no bridges and a two-hour hike to the top of Mt Kanpetlet (formerly Mt Victoria) at over 3,000 metres. Visitors can also swim in the seven-tiered waterfall at the source of the Lay Myo river amid forested mountains. Between Matupi and Amsway, visitors get to test their mettle further with a 22km hike and an overnight in a local house, sleeping on bam- boo mats. Further on between Ma Du and Law Thu in a day with a 29km walk, visi- tors may see local women with their faces fully tat- tooed an old habit said to make them look too bizarre to be abducted by kings of the former Bagan empire. Like many other Asian adventure trips, the jour- ney includes a boat ride, this one on the Lay Myo river all the way from Chin state to Rakhine state. The boat navigates from mildly turbulent white water down to the calmer waters of the val- ley where the river opens out into the fertile valley where the archaeological ruins of Mrauk U await inspection. The area is rich in historic remains from the 14th to 18th centuries when Mrauk U was the capital of the Arakanese empire, which stretched Burma Boating Expands Fleet for Myeik Cruises Y acht charter operator Burma Boating is expanding ILs eeL oI cIussIc yucILs, LIe compuny suId. With the beginning of the coming sailing sea- son in late October, SY Sunshine and SY Adventure will cruise the Myeik Archipelago under Burma Boatings ug. SY Aventure is a 95ft yacht with three double cabins. The schooner SY Sunshine (103ft) was built to the design drawn up by famous naval architect William Fife Jun. In 1906, the original Sunshine was in the possession of the Portuguese Royal family, during which time she was called Maris Stellis. Sunshine has space for six guests. The Myeik Archipelago in Myanmars south remains one of the planets most unspoilt destinations. Sometimes we sail for days without seeing any other yachts or tourists, says Herbert Mayrhauser, Burma Boatings co-founding captain. The 800 islands only recently opened to foreign visi- tors. There are no hotels and only about 2,000 foreign tour- ists per year, even though the area is only a three-hour drive away from Phuket, one of Asias tourism epicentres. The traditional inhabitants of the Myeik Archipelago ure LIe Moken, u peopIe wIo IIve o, und on, LIe seu. Sometimes called sea-gypsies, this ethnic minority group leads a traditional, semi-nomadic lifestyle, domi- nuLed by dIvIng Ior seu cucumbers, hsIIng und burLerIng. Burmu BouLIng wus Iounded In zo1 und oers yucIL charters, sailing holidays and boutique cruises on its four yachts with space for six to 12 guests. Customers can book a cabin and join one of the weekly six-day cruises for 1,800 per person. For small groups und IumIIIes, Burmu BouLIng uIso oers Iuxury prIvuLe charters, starting from 1,400 per day. Wai Linn Kyaw from the Ganges to the Ayeyarwaddy (Irrawad- dy). Briels said: The jour- ney is the destination. We link Bagan to Mrauk U through incredibly beau- tiful, remote and unex- plored areas where guests will most likely be among LIe hrsL IoreIgn LruveIers to set foot in the village. Both Bagan and Mrauk U each deserve an addi- tional two or so days for detailed exploration. From Mrauk U it is easy to take a boat to Sittwe for onward domestic IgILs In Myunmur or Lo go to the beaches of Nga- pali for relaxation. The fabled temples of MraukU. K h ir i T r a v e ls