Myanmar Business Today is Myanmar’s first bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories.
Myanmar Business Today’s target readers are foreign and local investors, businesspeople and government officials, and our advertisers are also those who try to reach this niche market in Myanmar. We provide best solutions for our advertisers with our content, outstanding print and paper quality, and superior distribution chain. We convey our advertisers’ messages to readers not only in Myanmar but also in Thailand, Southeast Asia’s second largest economy.
For more information please visit our website www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday
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Myanmar Business Today is Myanmar’s first bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories.
Myanmar Business Today’s target readers are foreign and local investors, businesspeople and government officials, and our advertisers are also those who try to reach this niche market in Myanmar. We provide best solutions for our advertisers with our content, outstanding print and paper quality, and superior distribution chain. We convey our advertisers’ messages to readers not only in Myanmar but also in Thailand, Southeast Asia’s second largest economy.
For more information please visit our website www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday
Twitter: @mmbiztoday
Linkedin: http://www.linkedin.com/company/myanmar-business-today
Myanmar Business Today is Myanmar’s first bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories.
Myanmar Business Today’s target readers are foreign and local investors, businesspeople and government officials, and our advertisers are also those who try to reach this niche market in Myanmar. We provide best solutions for our advertisers with our content, outstanding print and paper quality, and superior distribution chain. We convey our advertisers’ messages to readers not only in Myanmar but also in Thailand, Southeast Asia’s second largest economy.
For more information please visit our website www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday
Twitter: @mmbiztoday
Linkedin: http://www.linkedin.com/company/myanmar-business-today
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL www.mmbiztoday.
com November 14-20, 2013 | Vol 1, Issue 41
Myanmar Summary Contd. P 6...(\B) Iconomy to Grow 6.Spc; Inution Poses Risk World Bank releases frst Myanmar Economic Monitor M yanmars economy is set to grow 6.8 percent In zo1-1q hscuI yeur and rise further to 6.9 percent in the medium-term, banking on rising gas production, increased trade and stronger performance in agriculture, the World Bank (WB) said in a report last week. The recently-opened South- east Asian country registered Kyaw Min & Sherpa Hossainy a strong growth of 6.5 percent in 2012-13, driven mainly by strong performance in gas pro- duction, services, construction, foreign direct investment and commodity exports, the WB said. The stronger growth is not a surprise, Tina Singhsacha, chief representative, Myanmar, Standard Chartered Bank, told Myanmar Business Today. The country is currently enjoying its reform dividend. Investments, infrastructure projects and increased trade will help to boost growth, Tina said. Although the outlook in the short to medium term remains positive, there are risks both on the domestic as well as exter- nal fronts, the bank said. Internal risks to the outlook include the challenge of main- taining the reform momentum, while externally, a slowdown in Chinese domestic investment Contd. P 6...(\B) UMEHL in Legal Tussle with F&N T he Union of Myanmar Economic Holdings Ltd (UMEHL), a military- backed conglomerate, said it has initiated arbitration pro- ceedings against Singapores property and drinks conglom- erate Fraser and Neave (F&N) Ltd over their joint venture brewery. TIe scum e Is seen us u LrIuI oI the business climate in Myan- mar for international companies at a time when rapid reforms have enticed foreign investors and western governments to the former castaway country. Following the post-isolation changes, this dispute has led to a debate in the international media about a lack of legal pro- tection for foreign investments. In a rare public statement last week, UMEHL said the case is not about investment laws in Myanmar or how foreign inves- tors are treated, describing the concerns and assumption of politicisation as erroneous. We know it will serve the interest of some parties to politicise the dispute, but doing so does no justice to the case or to anyone interested in invest- Shein Thu Aung Contd. P 8...(\MLHL) and a decline in global commod- ity prices would hurt Myanmar, the WB said in its Myanmar Eco- nomic Monitor (MEM) report. SourIng InuLIon couId uIso dash the hopes of this impres- sive growth, which surpasses the average annual expansion of 5.1 percent expected in LIe ASEAN regIon. nuLIon has been on the rise in recent months, reaching 7.3 percent in August, on account of increas- ing food and housing rental costs, the bank said. nuLIon Is currenLIy Iow, buL LIere ure InuLIonury rIsks. ExLernuI InuLIon Ius been Labourers work at a construction site in downtown Yangon. Myanmar registered an impressive 6.5 percent growth in 2012-13, thanks to a strong performance in construction, services and gas production, the World Bank said in a report last week. M in z a y a r / R e u t e r s ~~,~~, _:.q.. . ~ _., .: .- ... :..q.._ '. q:..,. e _ e .~ .~~ .:q, ..: . , .:._. . ~.e ~.~ e _e .. . , .:.~. q. ~_e. '. q:..,. e_e.. q.:. ._~:.._. .q._. .:~.~... _.~~.:_.. ~ , . e . . . ~ .~~ .:_. .. . ~ . . .q.~_-..,...:q~..:. .. .~:..,.:.~~ ...:..q.~.~~ .~ ~.~..:.......: ~.~ .:.._e.._~:. ~.:~. .,. November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com 2 LOCAL BIZ Myanmar Summary Contd. P 12...(\S) MYANMARS FIRST BILINGUAL BUSINESS JOURNAL Board of Editors Editor-in-Chief - Sherpa Hossainy Deputy Editor - Oliver Slow Reporters & Writers Sherpa Hossainy, Oliver Slow, Kyaw Min, Shein Thu Aung, Phyu Thit Lwin, Htet Aung, Su Su, Aye Myat Art & Design Zarni Min Naing (Circle) DTP May Su Hlaing Translators Shein Thu Aung, Phyu Maung Advertising Tay Zar Zaw Win, Seint Seint Aye, Moe Hsann Pann Advertising Hotline - 09 7323 6758 Managing Director Prasert Lekavanichkajorn [email protected] Email Editor - [email protected] Special Publications - [email protected] Advertising - [email protected] Designer - [email protected] Phone Editor - 09 42110 8150 Deputy Editor - 09 3176 9529 Designer - 09 7310 5793 Publisher U Myo Oo (04622) 22A Kaba Aye Pogoda Rd, Bahan Township, Yangon, Myanmar. Tel: 951-2301568, 951-2301569, 951-2301570 Fax: 951-8603288 ext: 007 Penbun Distribution Co., Ltd. Tel: (662) 6158625-33 Fax: (662) 6158634 Distributor (Bangkok) Subscription & Circulation Aung Khin Sint - [email protected] 092043559 Nilar Myint - [email protected] 09421085511 US Should Update Myanmar Blucklist: HRW T he United States government should ensure that remain- ing sanctions on Myan- mar are kept up-to-date on human rights abusers, Human Rights Watch (HRW) and 36 other organisations said last week in a joint letter to President Barack Obama. The Obama administra- tion should move quickly to revise the Treasury Departments list of in- dividuals and companies burred Irom IuvIng h- nancial or business ties to the United States by both adding names of rights abusers to the list and setting clear and public criteria for removal from the list, HRW said in a statement. Phyu Thit Lwin As American and other investors move into Myanmar, they need up-to-date information so they wont risk becom- ing partners with people tainted by serious human rights abuses and cor- ruption, said Lisa Misol, senior business and hu- man rights researcher at Human Rights Watch. The US government should update the sanc- tions list to clearly identify the people and companies investors need to avoid. Since 2012, the US gov- ernment has waived most sanctions on Myanmar in response Lo reIorm eorLs by the government of President Thein Sein. The US has kept in place the targeted sanctions that block certain individuals or companies from any dealings with Americans and freeze their US as- sets, based on their ties to the military junta that ruled Myanmar until 2011 or their record on human rights, corruption, or arms trading with North Korea. However, despite changes in Myanmar, the list has remained es- sentially unchanged since 2009. For instance, the list should include Brigadier General Tun Tun Naung, a military commander whose troops carried out serious rights abuses and violations of international humanitarian law against ethnic Kachin civilians, including the indiscrimi- nate shelling of the town of Laiza in January, Contd. P 12...(\S) Women waIk pass a waII with grafti weIcoming US President Barack Ubama on a street side in Yangon. The US administration was reIuctant to expand the sanctions list at a time when it was establishing relations with the Thein Sein government and it chose instead to give priority to positive incentives for reform- ers, unnamed ofciaIs toId the AP. S o e
Z e y a T u n / R e u t e r s ~..q ~, ~. .q~.,_ e _.,.:.~..' ~,q .,... ._ .~...:.~:. .,:~ .. ~._.~.,.~_ ~.. ~.:. . ..: q, . ~. ._~: . Human Rights Watch (HRW) . ~_.:...: ~e ~._...| . ,' .. .,.._ ~.~~ ._.:_~:..._. .. ~~ :..:.~. .q~., _e ~..q ~, . ~ ~ _:,- _., .:. . ~. .. .. ~ . ~ .:.. _:.q.. . . , . ..: q ~ .~ .:.~ . ~ . ~:...:.._ .:q.~ . ~. ~.q.. ..e:~ . .:.~ . . _e_ . .q, . .:q .. .e e~ q, ~~ ~ ~.~ ~.~ .:.~ q.... : ..:q~q, 3 November 14-20, 2013 LOCAL BIZ Myanmar Summary Contd. P 5...(AMCHAM) Myanmar Business Today www.mmbiztoday.com AMCHAM's Myunmur Chupter to Puve the Wuy Ior LS Investors Oliver Slow W hen President Obamas cav- alcade rolled through Yangons streets in November last year, it was the clearest indica- tion to date that the US wus suLIshed wILI LIe ruIL of economic changes hap- pening in the country. As relations between the two countries continued to thaw, President Thein SeIn mude LIe hrsL vIsIL by a Myanmar head of state in almost 50 years earlier this year to the US, one of LIe hercesL crILIcs oI LIe former military regime. Americas business community too has taken notice as multinationals such as Coca Cola and General Electric began operations in the formerly isolated state, while many US-based small and me- dium enterprises (SMEs) predominately in the service industry opened om ces In Myunmur. As part of this increased interest, the American Chamber of Commerce (AMCHAM) recently announced the opening of its Myanmar chapter, in order to help US companies navigate the sometimes murky waters of operating a business in Myanmar. Interest has been huge, Judy Benn, executive direc- tor of AMCHAM in Thai- land and who is assisting in setting up the Myanmar chamber, told Myanmar Business Today. We have already signed up 60 companies today and my expectation is that we will have close to one hundred [by the end of] this month. Benn added that the chamber has attracted a range of companies from large multinationals and Myanmar companies that represent US Products, for example Ford and General Motors dealer- ships, to companies in Myanmar that are run by returnees, or repats, who had previously lived in the US. The aim of AMCHAM Myanmar, Benn says, is to help companies learn about how to do busi- ness in the country, with particular reference to learning about certain regulations and if there are any changes in those regulations, as well as the networking element, an area Benn says is crucial for people newly arriving in the country whether to do business or recruit or gain useful information. One of the chambers hrsL gouIs Is Lo udvocuLe a Chamber of Commerce law with the Myanmar government, which would allow it to become an independent American Chamber of Commerce in Myanmar, something which is likely to further ease the situation for US businesses in the country. In June, the US gov- ernment temporarily suspended all remaining economic sanctions against Myanmar in light of the reform taking place in the country, but some US companies have complained that since these sanctions have not been lifted permanently something the EU has done US companies are being left behind by companies from other countries as some doubt still exists due to the sanc- tions not being entirely lifted. However, Benn believes that US companies are becoming more and more conhdenL LIuL LIe sunc- tions will soon be lifted entirely. The sanctions have The American Chamber of Commerce in Myanmar is aiming to heIp the US companies do business in the recentIy- opened country. S o e
Z e y a T u n / R e u t e r s Contd. P 5...(AMCHAM) _., .:. -. .. :..q._._. ._.:....:.~ ~.~.~_. ._~~~ ~..q~,.. ~.,:~..:.~ _.,.:. ~..' ...:..q..~...:.~ ..: .. .. . , . ._ . . . ~ :.~ ~..q ~, .. ~ :.q~~:..:.._ _.,.: . q,~,_.. .q:~q.: .._. _.,.:.. ~..q~,. ~- .~..q.~._.~.,.. .~: .. , .:. _. . _., .:. .. ~ .. , .. , ._ _., .:. - ..|...:~..~.,_e ~..q ~, . .. .. .~_~ . ~_e. .:..q:~.._. _._. ._ .: . . . .~: . .:. ._~: ~..q ~, . . . . , ._~ . .:._ e. ..: ~ ~:~ .:. General Electric ~._ ~. : . . :.. .~ . .q. _.~ .~:~ .~ . ._.:.q. ~_ .q._ _.,.:.- ...~~ . .q:~q.:_.. ~..q ~, ~._..~ ~....:.. ~.~ .:.. . , ..:.._ ._ . ~, ..: . ~_~ ~.:.~_.:. .q:~ q .:.. _., .:. ~ ._ . , ..:. e . . . ._ .~.. q ~, ~ , ._ _~ ..:.~. .. ._ ~:....~ ~..q~,.. ,..:. _.,.:.~ ..,. ..:q~..:. ~.._.q, ~~~._. _~......_. _.,.:.~ ~.~..|. '~ ~ .q:~q.:_.. e.. ~~,~ ..,...|. ~~~ ,..|.~ q.:..._e ..: .,.._~:. ..q ~.. q~,~,.__~..:.~..- ~. ..: .| , ~ ~: J udy Benn ~ ._.:_~:..._. ~ , ._ _~ ..:.~. .~.,_e ~..q ~, ~ ~ , .:. ~:. ~e.:._.._ ~_.__._. q:~ . ~ _~..:.. _., .:~ . ~ .:.~:. ...:..._~:. ._. ._.:_~:..._. ~..q ~, ~ , ._ _ ~ .. :. ~..- q_ q e .~ . : _., .: . ~ . .. :..q.. . ..: ._ November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com LOCAL BIZ 4 Lower Hoose Pusses New Mediu Bill Oliver Slow T he Lower House of My- anmars parliament last week approved a new media bill as part of its bid to promote media development within the country. The details of the bill have not yet been revealed as it has now been passed to the Upper House for approval, but the new bill is expected to open an op- portunity for those moving into the media industry. When announcing the new bill, the Lower House stressed the need for professional ac- countability when it comes to online media. Myanmar began making amendments to media in the country in 2011 as the country began to open up. In August 2012, the Press Scrutiny Board was abolished, meaning that print media was no longer subjected to pre-publication Myanmar Summary A man reads the newspaper outside his home in Yangon. censorship, while earlier this year, the government made it possible for private daily news- papers to become available and since then 31 private daily newspapers have been granted permission for publication. The TV industry has begun to change too. Earlier this year, formerly underground dis- sident group Democratic Voice of Burma, was given permission to begin operations within the country. R e u t e r s _._ . . ~ .~: . . . e:.... _~. . ~.q.~ .~.~~__.....~_. _e. _. . _., .:. ~ . . e:e _e .~ .~~ . . . q .:..q, ~~ ~ _e. _. .~..| . _~. .. .~ .~ ._ ~....~~ .~ ~.~ .:.~ . ~ _ ., q... ._~:..q._. e....._~....~.q.~.,_e ..e:..,..:.~~~ ...~:. .,_.. .~...: ..:q~.._ ~.~....~:..:.~ qqq, ..: .,.:.._~:. .q._. _.,.:.~.,_e _._.._.:... .:. ~..e:~_~ . . ~ .~~ e _e . .:..q, ~~ ~ _._.._.:....:. ~ .~_...._.. ~~ ... _.~.~ ...~.~. . q:. .. .q. ~ ~e ~ ._ . e~ ......._.. .....e:~:....~...:..: q~.q, e,~..._. e...~~. ..~.~..:.:. ~.~.:.q,~~~._. ~..q . _~......_. Thui Phurmu to Ixpund Myunmur Presence T hailand-based pharma- ceutical and consumer IeuILI hrm Megu IIes- ciences Plc is planning to expand its Myanmar presence with a new warehouse to store pharmaceutical and consumer producLs, u Lop compuny om cIuI was quoted as saying in the Thai media. The expansion will cost be- tween $100,000 and $190,000. The companys chief executive Vivek Dhawan told Thai media LIuL LIe hrm wIII propose Lo build a 10-acre warehouse to the Myanmar government in LIe hrsL quurLer oI nexL yeur. The actual cost will depend on the price of land and construc- tion is expected to start by 2015. The move is part of a bid to double overall company sales, both domestically and interna- tionally, to $400 million over the next 3-5 years. Megas sales totalled $195 million last year, with 30 percent revenues coming from Myanmar, its largest market. The chief executive said he is very optimistic about the Myanmar market as several multinational companies have conLucLed LIe hrm ubouL distributing their products in Myanmar. Myanmars pharmaceutical business via hospital and phar- macy channels is worth $400 million but has the potential to double over the next 5-7 years. Mega set itself up in Myanmar In 1qq wILI seven sLu. Ls dIs- tribution operations have since grown to 27,000 outlets cover- ing 85 percent of the country with 1,400 employees. Mega now distributes phar- maceutical and consumer Kyaw Min products for 31 companies from Thailand and abroad including Osotspa, Johnson & Johnson and Nestle. The company operates two businesses in Myanmar: Maxxcare, which distributes pharmaceutical and consumer goods for outer brands; and Mega We Care, its own food supplement brand. Mega was established in Thailand 30 years ago. Today it operates in 29 markets worldwide. The company also manu- factures pharmaceutical and healthcare products in Australia. Myanmar Summary ..~._..~ ...~|.. .:. . .. ~ , ..:.q.. . , ._ e. ._ Mega Lifesciences Plc ._ _.,.: . ~ . . , ..:...: q ~ q, ~~ ~ _...,_.. ...~|..:.~:.,.... q, . .:.. .. ~ ~ , .:.~~ ~ ......:,~..~:. ~_.: .:.q,..:.._~:. .q._. ~. .|. . , .. . ~~ ~ ~..q ~, ..'.: ~~~~~~ . ~~~~~ _~:. ~ , ~ . :.e e q ._ ~: . . q._ . e...,.~.,_e ~~ -~~~e ~~,.q._ ......:,~..~:. ~_ ..:~ . :.q, ~~ ~ _., .:~. .q . .:._ . . ... ...~ ~:.~ ~._.~....:.~ _....:.._ _e.._~:. ~.~-~...:.._e. ._ Vivek Dhawan ~ ...e: . ._.:_~:..._. e.~. ..,.._..~:._e ~.~- .q:...~ ....,_. ~~.:..q, q_qe_.. _._~.. ~_.__._.q:~e.~:. ~.~~ .:..q, ..: . , .:.~: .:._ , . . . ..~~. ~..q~,..'.: ,~~ ..e~ qq.:..q, q_qe :.._. LOCAL BIZ 5 November 14-20, 2013 Myanmar Summary From page 3...(AMCHAM) Myanmar Business Today www.mmbiztoday.com Yooths Need Vocutionul Skills us Imployment Opportonities Increuse Htet Aung D espite a likely in- crease in aid from foreign countries in employment in the country, Myanmars youths should be given the opportunity to improve their vocational skills, ac- cording to U Kyaw Htwe, director of Crane Employ- ment Agency. Recently, UK Prime Minister David Cameron said in a meeting with Daw Aung San Suu Kyi that his government plans to increase its aid in occu- pation areas in Myanmar, while other governments are likely to increase aid to the country as it makes tentative steps towards genuine democracy after hve decudes oI mIIILury rule. Though foreign sup- port aid is high, youths need to have skills in or- der to achieve jobs, said U Kyaw Htwe. As long as foreign investors con- tinue to begin ventures in Myanmar, more and more job opportunities will be created. The youth of Myanmar must be able to perform to the levels expected in order for them to gain new jobs. So, starting from now, youths should attend vocational courses in order to learn the skills required, he added. U Kyaw Htwe added that jobs need to be created in been lifted [temporarily] at this point and I think most companies are conhdenL LIuL LIey wIII be lifted permanently in the neur IuLure und you hnd companies are willing to make the investment in order Lo be LIe hrsL InLo the market and capture these opportunities, Benn said. At the launch of the chapter, which was hosted at Yangons Chatrium Hotel on October 31, it was revealed that the US Ambassador to Myanmar Derek Mitchell will be the honorary chair of the chamber. The launch of AM- CHAM Myanmar is a sIgnIhcunL mIIesLone In US commercial engage- ment and I congratulate all of those involved. I look forward to a strong partnership with the new chapter, Mitchell said. Despite the Ambassa- dors role in the chamber, AMCHAM is private sec- tor, with funding coming through memberships, sponsorships as well as publications and events and while there is a large amount of dialogue between the chamber and the government, particularly with regards to organisation and in- formation, the chamber is able to take its own approach on many things. AMCHAM Myanmar will initially begin as a vir- LuuI om ce, operuLIng ouL oI om ces oI one oI LIeIr partner organisations wILI some sLu Irom LIe Thailand chamber taking IoId oI Myunmur uuIrs, Benn said. From page 3...(AMCHAM) G e o ff r e y
H ille r a vast range of industries, to take advantage of the wants of the youths in the country. ~,:~ ~:.~ _., .:. q .e.:.- ~...~. _..,:.:. ._eq ..... q, . _.:.. ~ _ .:~ . . .:. ...q, q..:._. _._~.q . e .:.~ . e. ~. , . .~ _~. . ~~ ~q_ ~.. .:. _e_._.:..._~:. CRANE ~..~~ q:.e .q..~..|,~~: ..~: ..~ ._.:._. _.,.:._ ._~:. ._.:. . .. :..q.. . , ..:.. q .. ._. . . ..:. ~.:.~_.:. ~.q:~ .:._ _e. ..:._~: _._ ~ . q .e.:.- ~...~. _..,:.:...: .. .q.~~ ~ . _.:.. ~ _ .:~ . . .:. _.. . .... :.._ _e. ._~: . . q:~ . . , .. _ ~q_ ~..._._~..: ~....:. .~:. (Skillfull Labour) .:.~_e. q.~_.q, .e .:.~ . ~.~ .. .~. ..~: . .q: ~..~~.:.~~~ .~.._ ~q_~...:.~ _ e_ ._ . : . . ._ ~: . 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November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com LOCAL BIZ 6 Myanmar Summary From page 1...(\B) From page 1...(\B) contained amid lacklustre com- modity prices, but accelerating growLI couId be InuLIonury considering limited supply-side factors such as rental housing. In addition, the authorities will need to develop more monetary tools to help manage money supply growth to complement LIe deveIopmenL oI LIe hnuncIuI system, Tina said. May Thet Zin, the World Banks Country Economist for Myanmar, said: Rising InuLIon Is uIwuys u cuuse Ior concern since it hurts the poor disproportionately, but econo- mies do sometimes experience rIsIng InuLIon, especIuIIy wIen in transition as is the case in Myanmar. However, there is no cause Ior uIurm yeL becuuse InuLIon remains in single digits in My- anmar, May Thet Zin said. Nonetheless, it will be impor- tant for the authorities to keep a close eye on the situation so that it does not get out of hand. The WB said the various reforms recently undertaken by the government and planned reforms appropriately focus on improving the environment for business in the country. These include the removal of import and export licensing require- ments on some 600 products, the approval of new regulations on foreign investment, the granting of licences to private insurance companies for the hrsL LIme In o yeurs und LIe en- actment of the anti-corruption law, among others. The MEM said in recent months the nominal and real eecLIve excIunge ruLes Iuve been depreciating, reaching K975 to one US dollar in July, which helps to make Myanmars exports more competitive. Al- though these indicators appear to have started appreciating in August and September, which could erode Myanmars export competitiveness, it added. TIe currenL uccounL dehcIL increased to 4.4 percent of GDP in 2012-13, up from 2.4 percent in 2011-12, due to import lib- eralisation and lifting of some exchange restrictions, the WB said. The report said the budget dehcIL decreused Lo .; percenL of GDP in 2012-13, from 4.6 percent in 2011-12. The 2013-14 budget provides for increased spending on social sectors, although the defence budget remains high. Gross international reserves reached $4.6 billion at the end of 2012-13, equivalent to 3.7 months of imports, up from $4 billion in 2011-12. Foreign direct investment in Myanmar had risen to $2.7 billion in 2012-13 from $1.9 billion in 2011-12, the WB said, In ILs hrsL reporL sInce resum- ing operations in Myanmar in January. Most of that invest- ment went into energy, gar- ment, information technology and food and beverages sectors, it added. The Myanmar Investment Commissions (MIC) data shows un InvesLmenL ow oI $q mII- lion in September, majority of them coming to manufacturing, agriculture, mining, and hotels and tourism sectors. The World Banks Myanmar Economic Monitor looks at recent macroeconomic devel- opments, recently implemented and planned policy reforms, and includes a special feature article. We believe by periodically bringing most recent economic The authorities will need to develop more monetary tools to help manage money supply growth to complement the deveIopment of the nanciaI system. data and analysis on develop- ment issues to government policy makers, think-tanks, civil society and citizens, the World Bank can contribute to informed debates and decision making on development policy within a rapidly changing My- anmar, said Kanthan Shankar, World Bank Country Manager for Myanmar. By producing the Myanmar Economic Monitor, we hope to contribute towards providing data and information on recent economic and policy develop- ments in the country as well as outlook going forward that vurIous groups wIII hnd useIuI, Khwima Nthara, WB's senior country economist for Myan- mar, said. ._~.~~ ..~..~.._ .e:_. .._. e _e .~ .~~ . ~:..~: ..:..: ~.q .~:~:q~e~.~.. _e.._ _.,.:.._ ~~~~, _:.q...~ '. q:..,. e_e. ~.~~._.. .:~.:~.~.. . ~,..:...,..:. ..:~.. .q...,..:. ._.:.~~,~q... _.....:.. ...~,.._.~.. .:.._~: ~..| ~.~~..,.:.~ qq._.._e.._~:. ~.:~. ._.: _~:..._. _._.._.:....~:..:..:._~: e.~. ...:..q.e_e.~.~~.... ._~: ...'. .q:~ q .:_. ._e. ._ . _.,.:.~.,_e ...:..q.e_e.~. ~~.~ ~._.~.,.~:.~ qq :...: ._ . . , .:.q . q._ ~._. ~.,.:.._. q.,_.. _._~._ ._. ~.~~..:. q .,._~:. ~.:~ . ._.:_~:.. ._ . _._ ~ .. , .:.q ._ ~.~~.~ _._.._.:...q. ~q , ~e , ~:. , .. . .q, ._ . .|~_.. ~,~.- q..._.... ~q,..:~.:._..~._. ~.~ ~.~..._e.~: ~.:...~,... .,..:. ~...~ _.,.:.~:. . ~ e e q ._ ~: . Myanmar Economic Monitor (MEM) ~. q..:~ ~.:~. ~_.:. ._. .._~..e:...._~: .... ...e_e.~.~~..,. .~ q:. .,. e_e.~.~~. ..:..~~ ._. .~...__e.._. Foreign Cos to Set Up Animal Food Factories F oreign companies are ar- ranging to set up animal food manufacturing factories in a bid to tap the local livestock market and alleviate the livestock feed shortage, IIvesLock und hsIerIes enLrepre- neurs said. Netherlands-based feed conglomerate De Heus, one of the interested companies, is aiming to establish a factory in Myanmar in 2015, said U Win Kyaing from Myanmar Fisher- ies Federation. Currently, Myanmars breed- ing sector is facing acute short- age of raw materials to produce animal food, and the miseries are compounded by inadequate transportation infrastructure and electricity woes which drIve up LIe prIces oI hnIsIed products. IvesLock und hsIerIes In- dustry insiders say fake animal Iood Is uIso oodIng LIe murkeL as entrepreneurs struggle hard to plug the supply gap. They said the authorities should strive to provide protec- tion against fake animal feed under the consumer protection law. At present, Myanmar Phyu Thit Lwin imports animal foods from Vi- eLnum Lo IuIhI LIe IocuI unImuI feed demand. Some animal feed companies from Europe are also looking InLo producIng hsI Ieed Irom animal waste as it is high in protein content, livestock and hsIerIes enLrepreneurs suId. Myanmar Now SEAG-ready O rgunIsers Iuve hnIsIed LIe consLrucLIon oI venues und facilities to be used in the 27 th Southeast Asian Games, authorities said. A total of 25 venues were completed and spruced up for the December 11 to 22 games, including the two main arenas Wunna Theikdi and Zeyar Thiri where the majority of the 33 sports will be played. The Wunna Theikdi, a stadium that can seat 30,000, will hold the opening and closing ceremonies expected to be at- Lended by ubouL ,qoo uLIIeLes und q,ooo sporLs om cIuIs In the capital Nay Pyi Taw. WILIIn LIe compIex ure LIe Lruck und heId ovuI, swImmIng pool and three indoor stadiums. Adjacent to the Wunna Theikdi is the Sports Village, an ar- ray of single-storey hostels built to accommodate the athletes. Aye Myat Myanmar Summary _._ ~ .~ q. :, ~.:...~ ~ ~~ . _._...:.. ~q.:,~.:.~,.:. ~_..:~q, ...~q_.. ... ~~~~. ~.q:~.q, _~.... .,._~: . _., .:. .. ._..q.. . , . ~e... .q._. .~q _.,.:.- ..._..q.~_ ~ ~.:~ , _~..q :..|.. ... ~ ~:. ......~...q~ _.~~.:.~ ._~: ~.:~,_~.. ~,..:....,. .:. . . _. ~~ .:._ ~~ ~ .. ._. .q.~.:~~ _....q:....:. q., ._e ~..|~~~. _....q:.. _...:. ...:~q,~~~ .:.... ~:~ e .q..... . . , . , .. q: ....:._ ~q.:,~.:.~.:...~|. .:.. .~ . ._ .... q: ~.~~.~.:. _...q..q, .~..:._e ..._..q...,.q .:.~.._. ....~ ~.._..:.._ ~.. ._ .,q:.:.. . ~. ._ ~.:~ ~..._...e.:.~:. ....:.~ ~_..:~._.....:._._e.._~:. ~:~,q..:.~ ._.:_~:..._. .~:. ~~ q~.,. q~., ~ _...~..._ ....~:. ~.:. ..~:~~~ ~..._ .,q: .~:. _... _.....:._._e._.. ~.~~._~..:._e.._~~..~. . .~e:.q~._~..:.~~. ~~:.~.:.,,..~:.~.._....:..__e.._. ~~.. ~:.~.:. ~._~.~...|.,~~~~~.|~_......~:.~.:.e...~. ~._.~..|~.~_.... :.._ _e. _. .~.:...:...| . ~~ . ~:.~.:.~...:..|. ,~~~ ~ .|~.:.q, ..:.,.:.._~:. .q._. F ile s 7 November 14-20, 2013 Myanmar Summary LOCAL BIZ Myanmar Business Today www.mmbiztoday.com Golden Myunmur to Ixpund Rootes This Month Su Su Private airline Golden Myan- mar will expand its domestic and international routes with Airbus planes this month, sources with the airline said last week. The carrier aims to capitalise on the impending tourist boost in the wake of the 40-day count- down for the 27 th SEA Games in the country, which will see an increase in the arrival of visitors. The airline will start operating to new destinations with new XY-AGT A320 Airbus planes from November 15. Golden Myanmar will also op- erate a new Mandalay-Imphal cIurLered IgIL on November 21 ahead of the Manipur Sangai Festival next month, according Lo omcIuI medIu reporLs. After the festival, scheduled for November 21 to 30, Golden Myanmar will operate regular IgILs Lo mpIuI usIng A-zo. The new air route operation between India and Myanmar is part of a bilateral air services agreement signed during Indi- ans Prime Minister Manmohan Singhs visit to Myanmar last year. Meanwhile plans are under way to operate a bus service between Imphal and Mandalay. Myanmar Summary ..~...._~:..._e...: Golden Myanmar ._ _._ ~ .. _._...._~:.._.....:.~ e.. ~~ . ~ .. . . ~ . :.._ _e. ._~: . . q._ . . . . .~:.~.:.. .~: , . ~..:_._e.._~~~ .q.._.:. ...q:~q.:.__e._.. ~,..:. .:.~ ~._. ....:.q,~~~ q_qe_ e.~. ..._~:.._... . .:.~ ~ .. .. ..: . :.._ _e. ._. XY-AGT A320 ..e: .:._e ..._~:.._....~...:. ~:. .~:. ~ q~.,. .~_ ..:q~.:.._e .q._. Golden Myanmar ~:. ~~ . . . ~ .~ ~_ .: . _. . q, ~ , .~:. q,~, ,.~:~ ..... q,~ ,..._~:.._... ..:.~:. XY- AGS A320 ~..~.:. ..e: _e .,. ..._~:.._.....:.~:. ~,,~|q.. .~_ _....._~:. .q._. _.,.:.- _._~... ._~:....:.~.,_e e_e.~.~~ .:..: _ ., .: ..._ ~: ... .~ ~ ~ ~ .q:~ . . ..: . ..: ~_._ _._.q: ..._~:....:.- .~ ~ .:.. ~ qq q, ~~ ~ _~ ... ..,_~ _.. .~~:.~ .,.- .. ._~:..._~.~.._e...: All Nippon Airways ._ _._~... ._~:...~.._e...: Asian Wings Airways - ..,.qee: , q:..,.~:. ~ee . :.._ e ._~_:.._ . T o m a s N a p r s t e k Golden Myanmar, established in 2012, started operating in Yangon-Singapore, Yangon- Bangkok and Mandalay-Yangon routes daily with XY-AGS A320 Air Bus since January. Myanmars domestic airlines are drawing interest from inter- national and regional aviation giants who are vying to secure sizeable shares in Myanmars lucrative and growing aviation market. Japans All Nippon Air- ways in September announced that it will buy a 49 percent stake at local carrier Asian Wings Airways. A total of 24 international and seven domestic carriers are cur- rently operating in Myanmar following its opening-up two years ago. Indonesiun Mining Iirm to Invest $qoom in Myunmur Plunts I ndonesias state-owned coal miner PT Tambang Batu- bara Bukit Asam plans to build steam power plants worth $900 million in Myanmar in the next few years and has invited a local partner to work on the project, according to Indone- sian media reports, quoting the hrm`s hnunce dIrecLor AcImud Sudarto. Sudarto said the Jakarta- based company had inked a deal with strategic partners in Myanmar, a country that is rapidly liberalising its economy and opening up investment to foreign companies. We have engaged with a local company there, but we cannot reveal the name yet, he was quoted as saying in Jakarta Globe. AcImud suId LIuL Ior LIe hrsL phase of the deal, Bukit Asam would develop a 2100-mega- wuLL couI-hred power pIunL, before moving on to building another plant double the size. Kyaw Min He said the estimated the cosL Ior LIe hrsL pIunL wus $o million to $450 million. The second plant would cost up to $450 million to construct. TIe hnunce dIrecLor suId the project would be funded through either internal cash or bank loans from Indonesia and Myanmar. Bukit Asams coal will be used for those power stations as Bukit Asam will also be export- ing coals to Myanmar. The miner also plans to spend up to $400 million in capital expenditure in 2014, up from this years $192.86 million. The company, which was Iounded In 1qo, suered u 41 percent drop in earnings in the January-to-September period on lower sales and rising expenses. Bukit Asams main export destinations are Taiwan (17 percent), India (14 percent), China (9 percent), Malaysia (8 percent), Japan (3 percent) and Vietnam (2 percent). Bukit Asam also sells some of its coal output, of which the bulk is low-ranking sub- bituminous and lignite to the domestic market. The company has also been involved in businesses beyond coal, tapping into industries that consume coal, such as electricity utilities. ~.,.q:..- .. .~:~ .......,.~.._e.._ PT Tambang Batubara Bukit Asam ._ .:._ . . ~,_ .e ~~ . _ ., .:. ~ ~..q ~, ..'.: ~~ ..e~,e.q._ .q...... .:~ ~:.....~ , ~. . ~ ~_ ..:~ q,...,._~:. .q._. ~..|..~,.~:. ..:q~q, ~~~ _._~...,..:.~._. e~..':.._~:. ~.,.q:...e: .:.-.e:_..~~q.q._.:~: ~:~._..~ ~.~_e.._ PT Tambang Batubara Bukit Asam ~.,_e _.,.:.. ..,..:.. . . , .. ...| ...: q ~ . ..: ~ _ .~ ~ .~ . ~ .q. .. ._~: .. _._~.~.~.:.- ~._~ ~ .e: ._.:. q, ._e. . ...._~: . e . ..,.- _:.q....q: .|,~ ~:_e.. Achmad Sudarto ~ ._.:_~:..._. . . , ...:~ _ . ~ -.. ~. ~ Bukit Asam . 2100 . | ~. .:~ ~:. ~ . . . ._ .~:~ . ... .. ..:~ ~:.....~ , ~..~ ~_.:.:.eeq._~:. ._.:_~:..._. F ile s November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com LOCAL BIZ 8 Myanmar Summary From page 1...(\MLHL) ing in Myanmar, Myint Aung, deputy managing director of the company, said in a statement. The fact is that we have a joint venture agreement that pro- tects our rights in the event of a default by F&N. The arbitration speaks for our desire to adhere to proper and due process, he added. Myint Aung said: We believe that allowing parties to exer- cise their contractual rights, including the right to arbitrate a dispute, will strengthen and not weaken foreign investors conhdence In Myunmur. UMEHL, one of two vast hold- ing companies linked to Myan- mars military, claimed a right under a joint venture agree- ment to buy F&Ns 55 percent stake in Myanmar Brewery Ltd after F&N defaulted on a term in the agreement, according to the statement. UMEHL didnt reveal the term on which it said F&N had defaulted, but a Reuters report said it was related to the change of shareholding structure of F&N, after F&N was taken over by companies linked to Thai bil- lionaire Charoen Sirivadhanab- hakdi earlier this year. No public statement had been issued by F&N retorting UME- HLs announcement at the time oI hIIng LIIs reporL, Iowever, F&N earlier in August said that there was no basis for UMEHLs action and it intended to vigor- ously contest the claim. The matter is in the hands of the companys lawyers, it said. UMEHL is on the Specially Designated Nationals List of the US Treasury. Assets of in- dividuals and companies on the list are blocked and US persons are generally prohibited from dealing with them. Myanmar Brewery Ltd was set up in 1995 by UMEHL with Heineken NV through its Asian urm, AsIu PucIhc BrewerIes Ld (APB), which transferred its 55 percent stake to F&N in 1997. F&N held a 50 percent stake in APB. However, in December last year, it divested its entire shareholding in APB. Following LIIs, on Junuury o, un oer by TCC Assets part of Charoens business empire for all the shares in F&N turned uncondi- tional, resulting in TCC Assets and concerning parties control- ling more than 50 percent of F&Ns issued capital. On April 24, UMEHL exer- cised its rights under the JV agreement to serve notice on F&N to sell its stake to UMEHL or its nominee. It served notice of arbitration on September 9. The arbitration proceed- ing could take months and is likely to be held in Singapore, a Reuters report quoted a source familiar with the matter as saying. Aostruliu to Assist Myunmur in ReIorm Process A ustralia will assist Myanmar in its reform process, getting involved in a wide range of sectors in- cluding education, health and political reforms, a top Austral- Iun governmenL omcIuI suId IusL week. Governor General of Com- monwealth of Australia Quentin Bryce, who was on a visit to Myanmar last week, pledged Australias assistance for Myanmars maternal and child welfare undertakings and farm sector development, encouraging big investment by Australian entrepreneurs. During her meeting with President Thein Sein she of- fered to provide scholarships to university students, technical assistance for building capacity of lecturers and teaching aid in basic education schools. She uIso oered Myunmur uccess Lo modern teaching methods and to build schools in rural and border areas of the country. Phyu Thit Lwin The pair also discussed ex- panding womens employment opportunities and womens participation in the peace mak- ing process. They also touched on eorLs Ior reucIIng UN MII- lennium Development Goals. On Tuesday last week, Presi- dent U Thein Sein also met with visiting Governor of New South Wales (NSW) of Com- monwealth of Australia Marie Bashir. The discussion focused on promoting cooperation between Myanmar and NSW, scholar- ship programmes for Myanmar medical students to study in the province and aid for Myanmars health and education. Prior to the meeting, My- anmar and New South Wales signed a memorandum of un- derstanding between Yangons Universities of Medicines-1 and 2 and University of Sydney and Sydney Medical School on cooperation in the education sector. The MoU covers cooperation in promoting teachers skill, students exchange program, doing research with universities and exchange of information and stationery. In July, Senator and Foreign Minister of the Commonwealth of Australia Bob Carr visited Myanmar, pledging A$100 mil- lion grant aid to the country for its education reform. Myanmar Summary A security guard waIks past a Iogo of Fraser and Neave Iimited at its ofce buiIding in Singapore. E d g a r
I m a g e s LOCAL BIZ 9 November 14-20, 2013 Myanmar Summary Myanmar Business Today www.mmbiztoday.com Toor Goides Cull Ior Iixed uily Rute A s Myanmars tour- ism high season kicks into gear, a daily tour guide price should be set, according to local tour guides. We should not experi- ence tour guide discrimi- nation, and tour guide services should be set the same, said Ko Naung, a Yangon-based tour guide. In some places, one tour guide might charge $20 a day, while another could be $30-$35 a day. If regu- lation of this happens, it will help the tourism industry to grow, said Ko Naung, a Yangon-based tour guide. Myanmars tourism high season begins in early November and, as LIe counLry`s prohIe us u tourist destination con- tinues to grow, tourism hgures ure IIkeIy Lo reucI record hgures once uguIn. Last year, arrivals reached more than 1 million for LIe hrsL LIme und uuLIorI- LIes Iope LIuL hgure wIII reach 2 million this year. Htet Aung U Than Ko, a tour guide lecturer thinks that the basic tour guide fee should be set relative to the tour guides language abilities. Myanmar attracts tour- ists from all around the world, and French and Japanese-speaking tour guides are in particularly high demand aside from English. According to sources in the tour guide industry, discussions are underway with the respective tour- ism authorities to set a daily tour guide fee. Thai-Myanmar Border Trade Sees $1oom Increuse Phyu Thit Lwin B order trade be- tween Myanmar and Thailand has reached $363 for the zo1-1q hscuI up unLII October, an increase of more than $100 million from the same period last year, according to a source from the Ministry of Commerce. There are four border stations between My- anmar and Thailand Tharchilake-Mae Sai, Myawaddy-Mae Sot, Kaukthaung-Ranong and Htee Kee-Sunaron. The Htee-Kee-Sunaron was reopened in May this year, and has seen $32 million pass through in border trade. At the border stations, an estimated $250 mil- lion is import, while more than $110 million is export, leaving Myanmar wILI u Lrude dehcIL oI more than $140 million with Thailand. Myanmars major bor- der trade counterparts are China, Thailand, Bang- ladesh, India and Laos. Border trade with China is the highest, while India is second. Myanmar has signed border trade agreements with all of its border trade partners and discussions are underway regarding developments such as border trade stations, industrial zones and economic zones, accord- ing to a relative source within the Ministry of Commerce. Myanmar Summary With the help of a tourist guide from Myanmar, a Chinese tourist passes through the border checkpoint in Dalou, Xishuangbanna, Yunnan Province. A n d r e w
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November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com LOCAL BIZ 10 Ooredoo to Sponsor Yangon Youth Forums Phyu Thit Lwin Q atar-based Ooredoo, one of Myanmars two telecom licence winners, will sponsor the 1 st Yangon Youth Forum, the company has said in a statement. The telecom company an- nounced its $5,000 sponsor- ship for the two-day event, which starts on November 22, at a signing ceremony held at Park Royal hotel in Yangon. The forum will be held at Aung Myay Bon San Shan Monastry, 9 mile in Yangon. Ross Cormack, CEO of Oore- doo Myanmar, said: With this sponsorship, Ooredoo commits to empowering the youth of Myanmar by helping promote large-scale job creation, entre- preneurship, access to capital and markets, and the participa- tion and engagement of young people in economic and social development. We believe young people should be given chances in life to educate themselves. Its fan- tastic to see youth having the purpose and meaning in their lives so they feel they have had LIe cIunce Lo grow und IuIhI their potential. The idea of the forum was mooted by some youth organi- sations in Yangon in June. The forum aims to create a youth network to solve community issues and strengthen youths social enterprises. It will select the youth delegates from Yan- gon region to attend Myanmar Youth Forum, and ASEAN Youth Forum, Asian Youth Fo- rum and Global Youth Forum. The topics of discussion at the forum will include education, youth opportunities, health and sports, prevention of narcotic drugs, IT and media, among others. Ooredoo has been involved in a range of corporate social responsibility (CSR) activities since the announcement of its bid win on June 27. In Septem- ber, Ooredoo donated $40,000 to the Ministry of Social Wel- Iure Ior ood-uecLed peopIe and formed a partnership with Cherie Blair Foundation for Women to train 30,000 women as mobile retail agents. Last month, Ooredoo announced its $50,000 sponsorship of the Special Olympics Myanmar National Games. Following its licence win, Ooredoo said it will invest $15 billion and introduce 3G voice and data services in Myanmar. Myanmar Summary Aung San Suu Kyi to Visit Australia M yanmars opposition leader Aung San Suu Kyi will muke Ier hrsL vIsIL Lo AusLruIIu In IuLe November. The democracy icon will attend public events in Sydney, Canberra and Melbourne and meet members of the Myanmar community from November 27 to December 2. oreIgn MInIsLer JuIIe BIsIop hrsL meL Ms Suu KyI In 1qq und said she was delighted to be able to welcome her to Australia. Australia has long been a staunch supporter of Aung San Suu KyI`s eorLs Lo brIng democrucy Lo LIe Burmese peopIe, sIe said in a statement last week. Australia and other nations have been gradually easing their sanctions against Myanmar as the country has allowed greater political and media freedoms in past few of years. The Nobel Peace Prize laureate accepted the invitation from former foreign minister Bob Carr back in June and remarked that she fondly remembers growing up with the song Kooka- burra Sat In The Old Gum Tree. The former political prisoner won a parliamentary seat in April 2012 and she became opposition leader of the National League for Democracy. AAP Myanmar Summary Intl Machinery Industrial Fair This Month Shein Thu Aung M yanmar I ndustrial Association (MI A) and Hong Kong-based Yorkers Trade and Marketing Service Co Ltd will organise an industrial expo in Myanmar this month, exhibition organis- ers said. Myanmar I nt'l Machinery I ndustrial Fair, which has been dubbed the largest international industrial event in the country, will be held from November 15 to 18 at the Myanmar Conven- tion Centre in Yangon. The four-day event will show- case over 220 exhibitors with 400 booths, displaying a range of state-of-the-art industrial machinery, related equipment, accessories. The exhibitors will also seek local agents and ex- tend their brands in Myanmar, organisers said. TIe exIIbIL prohIe conLuIns plastics and rubber, printing and packaging, food process- ing, electrical and electronic equipment, machine tool and automation, tools and hard- ware, woodworking, building materials and agriculture technology. The pavilions are from China, I taly, Malaysia, Singapore, Thailand, Taiwan and I ndia. Myanmar Summary M I M I F O o r e d o o _.,.:.-~~~~..|~..|...:..'.~: ., .. _~_ ._ , .- .. .. ._ ..._ ~.. .q .. ~ . ~ :.~ . :. .q:~ ._ e .q._ . Sydney , Canberra . 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Ooredoo Myanmar - .~.~_e.._ Ross Cormack ~ .. , .:...~. _. .. ~~ ~. . ~ ~e,~...:..,.~..:. q. . .. . ...~ ~ .:.~ ~ .~ . . . ..:... .e.:. ... :..q... . .q.e _e .~ .~~ . ~ ~ . ...| ..| ~ ..: q ~ . q, ~~ ~ . e .:.~:. ~:....._ ~.~..:.~ _....:.._e . ._. .e.:.~.,_e ,.~~e~ .e..:. _....q,~~~ ~. ~.q..:. q.._~:. q_.,..~ _~..:...: .e.:.~~~ e_e. ~ .~~ . ~.:.~.:.~: ..:.~ e,~.q, .~.._~:. ,.~ ._.: _~:..._.~..|eq.~:. _...q, ~_~_~~:. q,~,q .e~e ~._..:.~ .... _.._e._.. ...~ ~, . ~ ~ . q. .:. ~:. ._eq . q, ~~~ .e~,q~~..~ e,~. q, q_qe.. .e.:.- .. .q...,..:.~._. ....:.: ..q, q_ q e ._ . Wyne Wyne Pyae, a representative from Yangon Youth Forum shakes hands with Ross Cormack, CEU of Uoredoo Myanmar. _., .: .~ . . . , .~. . (MIA) . .e: .~: ~._.. ~ Yorkers Trade and Marketing Service Co.,Ltd ~ . ...| ._ .~ . . . , .. ... _ ..:._.. ~ e. .~ _.. . . :.._ _e. ._~: . . q._ . e. _.. ~ . ~~:. .~ . . . , . . .~ .~ ..: . . , .q .:.. .: .q:~ _..._ _e. _. . ~_~ .. . . ~~:_.. ~. . ._ ._e. ._ . , ._.. ~:. . ~ :. ~ q~ ., . ~ q~ ., ~ MCC ., .._ ~ .. . :.._ _e. ._~: . . q._ . COMMENTARY 11 November 14-20, 2013 Contd. P 12...(Quest) Myunmur's Qoest Ior Ioreign Investment In order to realise its long-term growth potential, Myanmar needs massive amounts of foreign investment. What should be done? Dan Steinbock D uring the past few years, Myanmars economic reforms and opening-up policies have unleashed a rapid Inow oI WesLern cupILuI. I n addition to the tradi- tional Asian investors, multinational executives and foreign dignitaries have been rushing to Myanmar, which is often seen as the last frontier of emerging Asia. Usually, strong growth potential translates to increasing foreign direct investment (FDI ). While Inows ure sLeudIIy rIsIng in Myanmar, the volume of FDI is still relatively low. The question is why? And what could be done about it? Falli ng behi nd HIsLorIcuIIy, Inows oI foreign investment in Asia have steadily expanded, but there is great varia- tion within the region and between countries. While FDI stocks illustrate historical trends, FDI ows descrIbe currenL re- alities. Both illustrate the Asian rivalry for foreign investment. I n the past three dec- ades, FDI in Asia has been a game of three sets of countries. First, Hong Kong, China and Singa- pore accounted for more than 70 percent of FDI stocks in East and South- east Asia in 2012. Another FDI group comprises Korea and the ASEAN ti- gers, including I ndonesia, Thailand, and Malaysia. The third group includes Vietnam, Taiwan, Philip- pines, Macao, Brunei, Myanmar, Cambodia and Lao. Until the late 1980s, foreign investment in Myanmar was one of the lowest in Asia, less than $6 million per year, as measured by foreign direct investment stock. As the status quo in the country began to change, FDI stocks increased to $60 million in 1989 and $1.2 billion by the mid-1990s. Myanmar surpassed Cambodia and Laos, but fell far behind Vietnam. As reIorms InLensIhed In 2010, there was much talk about the great potential for FDI in Myanmar. Cer- tainly, foreign investment grew from $1.2 billion to almost $10 billion, while FDI stocks as a percent- age of Myanmars GDP increased from 15.7 per- cent to 20.7 percent. With economic reforms and opening-up policies, the FDI stocks climbed to $11.9 billion last year. As a percentage of GDP, however, they have stag- nated, representing 20.6 percent of Myanmars GDP last year. n Lerms oI D ows, foreign investment in My- anmar was minimal until the late 1980s. I t really Look o onIy uL LIe Lurn of the 1990s, when the country attracted more than $225 million in an- nuuI D ows - bureIy u 10 th oI compurubIe ows in Vietnam. Until recently, the FDI performance of Myanmar and the Philippines has been relatively even. Last year, however, Myanmar fell behind the Philip- pines, the current growth leader of Southeast Asia. What can be done? Today, FDI is an integral part of the globalisation of competition and the glob- al specialisation of value chains of multinational corporations. To identify FDI opportunities, the latter focus on global indi- cators, including business environment, corruption, and competitiveness. I n the new Global Competitiveness I ndex (World Economic Fo- rum), Myanmar is ranked 139th, some 50 places behind Cambodia, which at 88th place is ranked second lowest in ASEAN. I n the Corruption Per- ceptions (Transparency I nternational), Myanmar is ranked 172nd, along with Sudan and Afghani- sLun buL sIgnIhcunLIy behind Cambodia (157), I ndonesia (118), and the Philippines (105). Further, Myanmar is ranked only 182nd in the Doing Business indicators (World Bank), along with Congo and Eritrea and well behind Laos (159), Cambodia (137), and the Philippines (108). At the broadest level, Myanmar can attract FDI by enhancing its business envIronmenL, hgILIng corruption, and fostering competitiveness. These eorLs sIouId be con- sidered necessary in any national FDI initiative. To strengthen com- petitiveness, the objec- tive should be to attract investors primarily with higher productivity. For instance, subsidising electricity rates may of- fer private gains for the investor, but improving LIe emcIency und quuIILy of the electricity grid will enhance the productiv- ity of the entire business environment. Myanmar Summary Myanmar Business Today www.mmbiztoday.com Contd. 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At the broadest level, Myanmar can attract FDI by enhancing its business environment, ghting corruption, and fostering competitiveness. These ef- forts should be considered necessary in any national FDI initiative. November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com COMMENTARY 12 From page 2...(\S) Second, the goal should be to improve the quality of the loca- LIon In wuys LIuL benehL muny companies and industries, noL jusL one or Lwo hrms. SpecIhc LurI exempLIons generate market distortions, whereas improved customs procedures enhance national competitiveness. Also, it is vital to develop sticky incentives that are tied to the location rather than the investor. Granting corporate tax breaks boosts the race to the bottom. I n contrast, broad improvements in the business environment contribute to country attractiveness. Finally, the focus should be on sustained investment rather than one-time deals. I f incen- tives are tied to the total size of the investment, including follow-on investments, they wIII be more benehcIuI Lo LIe country. Global FDI stagnati on Last April, the EU agreed to lift all sanctions on Myanmar, while the US suspended sanc- tions a year before. While these measures have positive implica- tions in Myanmar, they come with new constraints as all advanced economies cope with stagnation, lingering recovery, or worse. Global FDI is no longer im- mune to the gloomy growth prospects worldwide. I n 2012, LIese Inows pIunged drumuLI- cally, by a whopping 18 percent. MosL ImporLunLIy, D ows Lo developed economies declined by 32 percent, to a level last seen almost a decade ago. Europe alone accounted for two thirds of the global FDI decline. urLIermore, D ows Irom advanced economies have been supported by liquidity-driven growth since 2008; record low interests and non-traditional monetary instruments. By spring 2014, this growth is likely to be reset as the US Federal Reserve is expected to start the gradual unwinding of quantita- tive easing. That, in turn, means new downside risks, especially if the anticipated unwinding of mon- etary policy stimulus in the US Ieuds Lo susLuIned cupILuI ow reversals. I n that case, those na- tions in Asia that depend on FDI from the US will take a hit, as they did in 2008-09. Over time, the same goes for those nations that rely on FDI from Europe, the longer the sovereign debt crisis continues, or from J apan, if Tokyo begins the proposed tightening of its monetary and hscuI poIIcIes. While an increasing volume of the new FDI in Myanmar comes from advanced econo- From page 11...(Quest) From page 11...(Quest) . .:~ . .:.~:..~: ~~ . . ..:._.-e~,..,:~~.:q., .._. ~~~ .....__._.._.:....:. ~ .~ . ._ ~.|_., .:.-._.:. ~ ~ , ~ q .. ._. . . . ~.:.~.:.~: . .:.~ . ~.:.~. . . ~ ~ .:.. _~ ._. ._.:.~~,~q..._. . . . . . ~..:~..q~,..'.:~. . e . ~..q~, ..'.:~~ . e ~ ~ . ~~. ._.. .. :..q._._.._.:... .~.|.e.~|..:.._~:.,.._ ..~._.:.q..._....~,e.. :~ ..q~,..'.:~~..e~~. ~~.:.._. . ..: ._ .. , . ._ . . ~_., .:. ~.,_e . _.:.~~,~q... _....qq.~ e.....,:~. .q:~q .q._. ~.:...:..q.eq.- Global Competitiveness Index ~q_.,.:.._~. ~, ~q .,_..~..:..e:..._~. ~ q .,._ ._., .:. ~.,_e . .. :. .q.q.~,.~:.~ ._.. ~~ .~ _..:. . .:.~ ~~e~. e_.....~:. ~:..... ~ _e . _.:.~ ~ , ~ q . . ._. . . . .:.~ . . . ..: .:. .__e.._. To strengthen competitiveness, the objective should be to attract investors primarily with higher productivity. For instance, subsidising electricity rates may offer private gains for the investor, but improving the efciency and quality of the electricity grid will enhance the productivity of the entire business environment. Workers work at the Vietnam Hoang Anh Cia Iai (HACI) constriction site in Yangon. Myanmar has approved more foreign direct investment in the past ve months than aII of Iast year. S o e
Z e y a T u n / R e u t e r s Washington-based HRW said. A leaked 2009 diplomatic cable from the US embassy in Rangoon noted that many of the real perpetrators of human rights abuses or those who provIde sIgnIhcunL supporL Lo the regime are not yet targeted and that the more than 400 names it had provided had not been added. The Specially Designated Nationals list is maintained by the Treasury Departments Of- hce oI oreIgn AsseLs ConLroI. The Associated Press (AP), which reviewed the Treasury Departments online records in May, found that the Obama administration had made only one minor change to the list between J anuary 2009 and J uly 2012. I t has since added and removed a few names. The administration was reluc- tant to expand the sanctions list mies in the West, the great volume of the countrys FDI has historically relied on other Asian nations. Even today, China accounts for about a third or more of foreign investment in Myanmar, along with J apan and Asian tiger economies, Singapore and South Korea. TIe more dIversIhed LIe sources oI LIese D Inows, LIe greuLer wIII be LIe benehLs in Myanmar. What is certain is that, in the near future, the ri- valry for FDI is about to become a lot tougher, more complex and volatile. Dr Dan Steinbock is the research director of interna- tional business at the India, China and America Institute (USA) and a visiting fellow at the Shanghai Institutes for International Studies (China). For more, please visit0 http:// www. di ffer enceg r oup. net. Views expressed here are his own. at a time when it was establish- ing relations with the Thein Sein government and it chose instead to give priority to posi- tive incentives for reformers, unnumed omcIuIs LoId LIe AP. New names should be added to the list in line with a presiden- tial directive to impose targeted sanctions on those responsible for human rights abuses and who undermine political re- forms or the peace process with ethnic minorities in Myanmar, Human Rights Watch and the other organizations said. The administration should also adopt and publish clear criteria for deciding who should be removed from the list, including a requirement for those listed to provide a public accounting of past sanctioned activity, make restitution to victims, and cut ties to the Bur- mese security forces. Suspect companies should agree to undergo a full and independent audit and individuals should publicly declare their assets. The US government should noL Luke unyone o LIe Myun- mar sanctions list until they take full responsibility for past abuses and demonstrate a com- mitment to change, Misol said. Otherwise the US will reward bad actors and victims will be denied redress. From page 2...(\S) S o e
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REGIONAL BIZ 13 November 14-20, 2013 Myanmar Summary Won Ior The Money: North Koreu Ixperiments With Ixchunge Rutes James Pearson I n a dimly-lit Pyongyang toyshop packed with Mickey Mouse picture frames and plastic handguns, a basketball sells for 46,000 Korean Peo- ples Won close to $500 at North Koreas centrally planned exchange rate. Luckily, for young North Koreans looking to shoot hoops with Dennis Rodman, the new friend of leader Kim Jong Un, the Chinese-made ball actually costs a little less than $6 based on black market rates. Once reserved Ior omcIuI exchange only in zones aimed at attracting foreign investment, and in illegal underground market deals elsewhere, black market rates are being used more frequently and openly in North Korean cities. Publicly advertised prices at rates close to the market rate around 8,000 won to the doIIur versus LIe omcIuI ruLe oI 96 could signal Pyongyang is trying to marketise its centrally planned economy and allow a burgeoning grey market to thrive. This could boost growth and capture more of the dollars and Chinese yuan circulating widely so that North Korea can pay for imports of oil and food. UnomcIuI murkeL ruLes couId become more widespread following an announcement last month of 14 new special economic zones (SEZs) aimed at kickstarting a moribund economy where output is just one fortieth of wealthier South Koreas. A spokesperson for the Korea Economic Development Association, a local organisa- tion tasked with communicat- ing policy in the new SEZs, told Reuters that exchange rates in LIe new zones ure Lo be hxed according to (local) market rates. TIe omcIuI ruLe Ior LIe won is like a placeholder, said Mat- thew Reichel, director of the Pyongyang Project, a Canadian NGO that organises academic exchanges with North Korea. We all know that the value of the won is not this. An estimated 90 percent of economic transactions along North Koreas border with China are in yuan, an embar- rassment for a country whose policy stresses economic inde- pendence, and something that reduces the grip that authorities attempt to exercise over its peo- ple and economy. Pyongyang does not publish economic data, but is believed to have run a sizeable current uccounL dehcIL Ior yeurs, sLruIn- ing its ability to pay for imports in hard currency. An attempt in 2009 to revalue LIe won und conhscuLe prIvuLe foreign currency savings prompted protests from market traders and forced a rare policy reversal and public apology Irom sLuLe omcIuIs. Due to its lack of foreign cur- rency, the North Korean gov- ernment will have to tolerate black market rates, even if it has dImcuILy In omcIuIIy recognIs- ing them, said Cho Bong-hyun, a North Korea economics expert at the IBK Economic Research Institute in Seoul. Others have gone down this route before. This is comparable to Cuba, which implements a dual cur- rency system between convert- ible pesos and national pesos, and Myanmar, which for years refused to recognise the black market value of the kyat until it became completely uncon- trollable, said Reichel at the Pyongyang Project. Not only does North Korea noL provIde omcIuI duLu on ILs economy, but when things are actually paid for using the of- hcIuI ruLe, LIe muLIs don`L udd up. Pyongyangs two-line metro system, which only accepts won, is one of the worlds cheapest at just 5 won a ticket. However, the equivalent grey market value is so small that no single coin in any currency is small enough to cover it. State salaries are also paid ac- cordIng Lo omcIuI ruLes, meun- ing the 6,000 won a month paid to a civil servant only just covers the cost of a pack of cigarettes and a lighter. TIe dIerence In omcIuI suIurIes und unomcIuI prIces Is made up from an economy that, despite government restric- tions, has become increasingly marketised. Even workers with stable jobs in Pyongyang are tasked with extra money-making activi- ties. Women in particular, less bound by obligations to work state-controlled jobs, dominate North Koreas countless urban and rural marketplaces. While low-end goods and ser- vices are increasingly expressed according to grey market rates, transactions at more expensive shops are usually priced using LIe omcIuI ruLe, buL conducLed in dollars or yuan. The Chongjon Sunrise Super- market in central Pyongyang sells Hersheys chocolate bars at 150 won and, for the ambas- sadors in town, boxes of Ferrero Rocher at 1,850 won the low prices indicate the vendor expects to be paid in foreign currency, not won. Reichel said that when he once teasingly tried to pay for his midnight snacks with a couple of crumpled North Korean won banknotes, the shop assistant smiled patiently, and politely asked for dollars. At grey mar- ket rates, the assistant would have had to accept an armful of 5,000 won notes, the largest denomination, for the 160,000 won the chocolates cost. Black market rates are set by larger scale currency traders working in major urban areas, said Christopher Green of the Daily NK, a website that tracks black market rates in North Korea. Kim Jong Un, the third of his line to rule impoverished North Korea, has repeatedly pledged that austerity is over. The North experienced a famine in the mid-1990s and its economy was hurt by the col- lapse of the Soviet Union that propped it up in a Cold War battle for supremacy in Asia. Trading partners such as China and Russia now insist on being paid in hard currency, draining reserves. Stacked up against South Ko- rea, whose economy it once out- muscled, and China, which has gone from failed collectivisation to the worlds second-largest economy, Pyongyang faces some tough choices. Economic reform and freer markets could accelerate the growth of a middle class that is not beholden to Kim and the dynastic rule of his father and grandfather. One step would be to broaden out the number of institutions like the Golden Triangle Bank in the Rason Special Economic Zone which regularly advertises rates for the euro, dollar, yuan, yen and rouble that no longer reecL LIe omcIuI poIIcy ruLe. There are people who are trying to push for some sort of policy implementation, said Reichel. But we wont start to see sustainable economic devel- opment until the government accepts their currency system does not work in the long term, and continuing with this idea of a state-provided salary is futile. At this stage, its still like cowboys and capitalism. Reuters Myanmar Business Today www.mmbiztoday.com F ile s ._ .:~ ~ q .e:.. -.._ ~.. . e ..,.._~:~..q~,...:.~ .,_ e ~.~ ~. . :.~ .~ _ ~ .,q ._~:..q._. ..~ .~. ..,~ ~ .~~ .:..~...~:. ~.. ,'~~~_e ~eeq_..~..q.._~...e..,. :.~q ~..|.._~..: ~..q~, ..'.: ~~ ~q.,._~:..q ._. ..:....~~.,.:.~q~~ .| .._..:.~:.~eeq,~~~~ ..q~,..'.: ' ..'.:~.:~.. _..q.._~:..q._.~q:.~ .._~...e..,..:._.:.q... _. . . . .:.~:.. ..: . q, ~~ ~ _...._.._e._..~q:..~...~~ .:.~ .._~...e..:.q.,_.. .. : . .. . ~ ~ . , . :. . :. ~:. ._ .:~ ~ q .e:.-_ . . :.~ .~ . ~...,_~._~:..q._. ~. .q. ._~.. . e . . , .:.~q ~,...:.~.,_e~.~~..:.. .~ _ ~ q_ . . .. . ~ ~ . , . :. ~q ~..q~, ~ ..'.:. ~.. ~~~ ,..|.q..:._.~q:.~. .e..,.:.~q ~..q~,..'.: ~ ..'.:. 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November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com REGIONAL BIZ 14 Bungludesh Wuge Bourd Proposes ,,pc Gurment Wuge Rise B ungIudesI`s omcIuI wuge bourd proposed u ;; percenL rIse in the minimum wage for garment workers last week after a string of fatal factory accidents this year thrust poor pay and conditions into the international spotlight. GurmenL IucLory sLu wenL on sLrIke over wuges Ior sIx duys In September, hitting production at almost 20 percent of the countrys 3,200 factories. The strikes followed similar protests over the summer. The worlds second largest clothing exporter hopes to announce a new minimum wage this month. The wage board proposed a rise in monthly pay to 5,300 taka ($68) after factory bosses formally oered ,6oo Luku und LIen, uILer severuI meeLIngs, ruIsed LIuL Lo 4,200 taka. The board proposed this amount considering the present reality both from the point of owners and workers, board chairman AK Roy told reporters. The proposal will go to the Ministry of Labour and Employment for review. The wage negotiations must somehow strike a balance between Western fashion giants, politically connected factory owners and proLesLIng sLu, wILI LIe governmenL`s eye on eIecLIons due Lo be held by January. The government did not respond to strikes over wages last year, but since then accidents including the collapse of the Rana Plaza factory complex near Dhaka, which killed more than 1,100 garment workers, have put the authorities on the back foot. Bangladesh appointed the board in May after the Rana Plaza disaster. We will urge the owners to implement it without any opposition, otherwise there will be a deadlock in the sector, said Sirajul Islam Rony, a workers representative on the board. But Arshad Jamal Dipu, a representative of the Bangladesh Gar- ment Manufacturers and Exporters Association (BGMEA), said 77 percent rise was high. We will appeal to the government to consider our ability, and it sIouId noL Luke uny decIsIon ouL oI emoLIon or poIILIcuI benehL, Ie told Reuters. The present minimum monthly wage for garment workers is around half those in rival Asian exporters Vietnam and Cambodia and just over a quarter of the rate in top exporter China, according to International Labour Organisation data from August. Reuters Myanmar Summary Singapore on Alert For Cyber Attucks AIter Websites Hucked Kevin Lim S ingapores government has been put on height- ened alert for cyber attacks after people claiming to be from international hacking collective Anonymous defaced several web sites in the city-state and threatened further action. Government agencies have been on heightened vigilance and have enhanced the security of their IT systems in response to the declared threats against the governments ICT infra- structure, the Infocommuni- cations Development Author- ity of Singapore (IDA) said in a statement. ICT stands for information and communication technology. The comments came a day after hackers claiming links to Anonymous defaced dozens of websites belonging to Austral- ian businesses and Philippine government agencies. Several websites in the city- state have also been hacked over the past week, including one belonging to the town council of Prime Minister Lee Hsien Loongs constituency and another belonging to a second- ary airport. IDA said the problems in accessing several Singapore government websites over the weekend were due to technical problems that arose during maintenance on Saturday after- noon. While the glitches have been recLIhed, peopIe uccessIng these websites may continue to face intermittent access as maintenance was still ongoing. On Monday last week, the website of Singapores largest newspaper, the pro- government Straits Times, was inaccessible for several hours, three days after a section of its site was successfully attacked by someone claiming to be from Anonymous. The website of the National Trades Union Congress, closely associated with Singapores ruling Peoples Action Party, also appeared to have technical problems, with its eServices down. Some users might have had dImcuILy uccessIng LIe sLruIL- stimes.com website late last night and some SPH websites today ... The SPH Informa- tion Technology Division is investigating the matter, pub- lisher Singapore Press Hold- ings (SPH) said in response to media queries. The disruption comes three days after a hacker, who called himself The Messiah, posted a lengthy message on the papers online blog page to criticise its report about an internet video by another person claiming to be part of Anonymous. That person, who wore one of the Guy Fawkes masks that have come to symbolise the group, had threatened to attack Singapore government websites to protest against new licensing rules on news websites. English Catholic traitor Guy Fawkes was the best-known conspirator in a 17th-century plot to blow up the countrys parliament. 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The cIothing tag on a boy's shirt by WaI-Mart's brand Faded CIory, which is made in BangIa- desh, is shown after purchase from a Walmart store in Encinitas, California. M ik e B la k e / R e u t e r s F ile s REGIONAL BIZ 15 November 14-20, 2013 Contd. P 16...(China) Myanmar Business Today www.mmbiztoday.com Japanese Cabinet Approves Bill to Set Lp Strategic Special Zones T he Japanese Cabinet approved a bill to set up strategic special zones last week as a centrepiece of economic growth strategy to promote deregulation exclusively, Japanese media reported. Prime Minister Shinzo Abes government is seeking the pas- sage of the bill during the ongoing extraordinary Diet session through December 6, according to Kyodo News. TIe governmenL Is expecLed Lo desIgnuLe LIree Lo hve specIuI zones early next year, which would be aimed at attracting peo- ple and investment from both domestic and abroad through deregulation and tax incentives. It also seeks regulations which would be relaxed in the zone to promote urban redevelopment, as well as those for launch- ing an agricultural production corporation. Other deregulation steps to be implemented are allowing prIvuLe secLor hrms Lo operuLe pubIIc scIooIs, enubIIng IospI- tals to increase beds more easily, and expanding the scope of treatment by non-Japanese doctors and nurses. Details of tax breaks in the special zones will be decided at the end of the year in discussions about tax reforms for the nexL hscuI yeur sLurLIng AprII zo1q, omcIuIs cIose Lo Abe suId. Xinhua Myanmar Summary Chinu Premier Wurns Aguinst Loose Money Policies Li says China needs 7.2 percent GDP growth to support employment C hina needs to sustain economic growth of 7.2 percent to ensure a stable job market, Premier Li Keqiang said as he warned the govern- ment against further expanding already loose money policies. In one of the few occasions wIen u Lop omcIuI Ius specIhed the minimum level of growth needed for employment, Li said calculations show Chinas economy must grow 7.2 percent annually to create 10 million jobs a year. That would cap the urban unemployment rate at around 4 percent, he said. We want to stabilise eco- nomic growth because we need to guarantee employment es- sentially, Li was quoted by the Workers Daily as saying last week. His remarks were made at a union meeting three weeks ago but were only published in full last week, just days before a pivotal Communist Party plenum to set policy opens. Yet even as authorities keep an eye on growth, Li sounded a warning on easy credit supply, which he said had topped 100 trillion yuan ($16.4 trillion) in the worlds second-biggest economy. Our outstanding M2 money supply has at the end of March exceeded 100 trillion yuan, and that is already twice the size of our gross domestic product (GDP), Li was quoted as saying. In other words, there is already a lot of money in the pool; to print more money may Ieud Lo InuLIon. His comments echoed the governments hawkish stance on InuLIon, unuIysLs suId, und were sepuruLeIy umrmed last week by the central bank, which promised to keep policy prudenL wILI upproprIuLe hne- tuning as well as to resolutely repress property speculation. Still, Lis remarks underscore LIe hne IIne CIInu musL wuIk to create economic growth and jobs for social stability, while guarding against excesses that may hurt itself in the long run. Chinas authorities have criti- cised the countrys $8.5-trillion .e:-e:._.:~ ~ .. .. :..q.~ , .:.~_.:q,._~..~..~:.., . -~, _~ .~e . . , . ._ ~.~ ~ ~~_ _..... _. .. .. :..qe _e .~ . ~~.-e:~.q._e.~:._.. .._.~...:._e ~, .~,...:.. ~:.._e..: . .:.. . _....:.q,~~~_e.._~:..,..e:.:.- .~ ..e:_..~ ~q. q._. ~. .q~.,_e .:._ . . ~..:. .~~....:..q.~,....|..~ ~_ ..:~ . :.q, . . :._. .e .~ .. .. :..q..~ . ~ , .:.~:._._ ~ . . _._ .. . , .q .:.. . ~ ~ .:.. q .:_..q..._.....:._.. . .:q,~ ~ ~~_.:.:.q,_e.~:._...._.~...:. ~._~..~:...: ......~.,..:..|..:._e...:._....:..q,..:.,.:. ._._.q:e_e.~.~~.q.~ ~ ._. . . ..: q, ~~ ~ ._...._.~.. .:.~ _._...:._....:.._ _e... .~...q. ~~,.:.~..... ..|...:q~.q.~~ ~ ._.q_ q e _..: q ~ . :.._e.q._. ._...._.~. ..:...: ..| . ~ ..~..,..:.~:.~.:._._..: . .~: ..:...., .:. ., . .:..e ~ . .q:~, .:.. . ,:_..:.. ...~|.~.._.....~~ . _.. :.q, ~~ ~ ~.~: ~_ .e: ..: q ~ . :.._ _e. ._~: .. q._. Chinese Premier Ii Keqiang warned the government against further expanding its aIready Ioose money poIicies. R e u t e r s November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com REGIONAL BIZ 16 From page 15...(China) Philippines Hus Second Biggest II Increuse in ASIAN in H1 Alito L Malinao T he Philippines recorded the second biggest foreign direct investment (FDI) Inow Ior LIe hrsL IuII oI LIIs year, according to the United Nations Conference on Trade and Development (UNCTAD). In its latest report on Global Investment Trends Monitor, UNCTAD said that the Phil- ippines had a 10.9 percent Increuse In D Inows Lo $z.z bIIIIon In LIe hrsL IuII oI LIe year. This was the second biggest increase among the member- countries of the Association of Southeast Asian Nations (ASE- AN), topped only by Malaysia, which recorded a 14.4 percent increase in investments to $5.9 billion. Next to the Philippines are Indonesia with FDI increase of 6.8 percent to $8.3 billion, and Vietnam, up 3 percent to $3.9 billion. According to the UNCTAD report, the two other founding members oI ASEAN suered un FDI contraction, with Thailand recording a 54 percent decline In D Inows Lo $1.q bIIIIon In LIe hrsL semesLer oI zo1 wIIIe SIngupore suered u ;.q percenL drop to $25.9 billion. UNCTAD said that in de- veloping Asia, the recovery of D Inows wus weuk, wIIcI IL attributed partly to a slowdown in economic growth and mac- roeconomic uncertainty as well as a slow demand in consumer markets in many investor countries. The report said that globally, FDI reached an estimated $745 bIIIIon In LIe hrsL sIx monLIs oI the year, up from $718 billion a yeur ugo buL LIe Inow Lo deveI- oped economies declined. L suId LIe ows oI D Lo developing and transition economies accounted for more than 60 percent of the global FDI, which it called a record share. The release of the UNCTAD report came on the heels of a statement by the Bangko Sentral ng Pilipinas (BSP), the countrys central bank, that the neL D Inow In LIe PIIIIp- pines in July surged to $533 million, a sharp 227 percent increase from the $163 million recorded in the same period last year. TIIs reecLed LIe conLInued conhdence oI InvesLors In LIe Philippine economy on the back of strong macroeconomic fundamentals, the BSP said in a statement. n LIe hrsL seven monLIs up Lo JuIy zo1, LIe neL D Inow in the Philippines climbed 22 percent to $2.62 billion from $2.14 billion in the same period last year. The BSP expects net FDI Inow Lo reucI $z.z bIIIIon LIIs year, slightly above the $2 bil- lion in 2012. MeunwIIIe u Lop omcIuI of the Department of Trade and Industry has said that by pussIng up LIe Truns-PucIhc Partnership (TPP), Philippine IndusLrIes muy Iose u sIgnIhcunL share of the US market. We cunnoL uord noL Lo be part of the TPP because the United States is one of our larg- est markets. Our neighbours, Brunei Darussalam, Malaysia, Singapore, and Vietnam, are part of that agreement. If we are not part of this agreement, our neighbours will get preferential LurIs und Iurger murkeL uccess. n eecL, LIIs muy dImInIsI our market access, Trade Under- secretary Adrian S Cristobal Jr was quoted as saying in a report. According to Cristobal, among the sectors that may be sIgnIhcunLIy uecLed ure LIe electronics and agriculture industries. The Philippines top hve exporLs Lo LIe UnILed SLuLes are static converters, ignition wiring sets, electrical machin- ery, other digital monolithic integrated circuits and coconut (copra) oil. Reuters Myanmar Summary economy powered by heavy reliance on exports and invest- ment as unstable and on an unsustainable growth path. To retool the economy, its new leaders have signalled they are willing to tolerate slower expan- sion in exchange for cleaner growth led by consumption. BueLed by sIuggIsI exporL sales and in part on the govern- ments deliberate attempt to slow activity, Chinas economy is sagging towards its slackest pace of expansion in 23 years this year, at 7.5 percent. In its third-quarter monetary policy report, the Peoples Bank of China (PBOC) said Chinas economy faces a challenging fu- Lure und LIuL InuLIon, uILIougI stable right now, may rise in the fourth quarter. The foundation for stable consumer prices is not solid, the central bank said. Annual consumer InuLIon muy rIse In the fourth quarter. It said a marked rise in house prices, especially in Chinas big- gest cities, may have also lifted rents, other related costs, and ultimately overall price levels. Li reiterated that a 7.5 percent growth target for 2013 remains intact, but noted that weak exports were a risk. Exports can directly create about 30 million jobs and add another 70 million jobs in other related industries, Li said. For every percentage point that China generates in eco- nomic growth, it creates 1.3 mil- lion to 1.5 million jobs, Li said. We are not seeking high- speed growLI, und dehnILeIy noL seeking only GDP growth. But a reasonable speed in growth is needed, and so we have ensured a reasonable range in economic expansion, he said. Chinas urban jobless rate eased to 4 percent at the end of September from 4.1 percent three months earlier. It is the counLry`s onIy omcIuI unem- ployment indicator, but analysts say it grossly underestimates the true level of unemployment as it excludes about 260 mil- lion migrant workers from its surveys. Li did not say that 7.2 percent in annual economic growth was the minimum the government would tolerate, but analysts have always believed that Chinas leaders considered growth between 7 percent and 7.5 percent to be reasonable. On InuLIon rIsks, Iowever, I was clear. If we loosen credit, if we expund LIe hscuI dehcIL, LIuL would be like an old saying wIere one currIes hrewood Lo exLInguIsI u hre, I wus quoLed as saying. And this is why we choose to persevere wILI sLubIe hscuI und monetary policies. Reuters Myanmar Summary e. . . ~~ . e .. . . ~.,_e ._.:.~~,~q..._.... ~.:. ~_.:. qq .:_.. . _.:.q..._.... ~~:..~e~.:... qq:.._ .~.._e.._~:. ~,.e.q.. e _e .~ .~~ .q.. q:~ ... _ .:. ~q .q._. e...._ e...~~~:.~ ._.:.~~,~q..._.... ~~. q:. . , . ~ .~~ .:. _.. ..:~~:. _e ~..q~,..'.: . .eq . ._~: . . q._ .....q :.. ._ . _.:.~ ~ , ~ q .. ._. . . . ~.:.. . qq ._ . ~. . _e. _.. q .. ._. . . ..:.. : ~,., q:..,. ~.~~.: . _.. ..:~~:._e ~..q~, ..'.: . .e~q._~:. .q._. e.....,:~~ ~.,.q:. . : . _.:.~ ~ , ~ q .. ._. . . . qq . 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The Philippines recorded the second biggest foreign direct investment inHow for the rst haIf of this year. R o m e o
R a n o c o / R e u t e r s REGIONAL BIZ 17 November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com Taiwan Branding Stymied By Its Success At Muking Others' Gudgets Michael Gold T aiwans success at design- ing and mass producing must-have gadgets for branded rivals such as Apple I nc makes it tougher for its companies trying to launch aspirational consumer brands of their own. Ben Ho, marketing chief at smartphone maker HTC Corp, suys IIs hrm`s sIIIL Irom orIgI- nal design manufacturer (ODM) to branded company has been a challenge for marketing and messaging. For an ODM player, things are much simpler you ship to the operators and your jobs done, he said in an interview. As a company, we decided to become a brand ... it opened up a whole new area of engagement. WILI ruLIIess emcIency und technical prowess, most large Taiwanese manufacturers were founded a generation ago by engineers or business people for whom cost control was king. Products were faster, lighter, more compact and feature-packed, but lacked a coherent brand image to attract consumer loyalty even after these ODMs decided to become brands. Now that the electronics and technology goods that Taiwan manufactures have become increasingly commoditised, the countrys lack of an innovative breakthrough is more apparent. Not so long ago, the likes of Acer I nc and Asustek Computer I nc (Asus) looked set to lead Taiwans economy down a path similar to J apan and South Korea, moving from assemblers of gear exported westwards to globally admired brand champions. I n 2010, Acer was the worlds second-largest notebook manufacturer. I n 2011, HTC conLroIIed u hILI oI LIe UnILed States market for smartphones second only to Apple. Today, boLI ure IendIng o LuIk oI buy- outs as sales have slumped and their stock prices have followed. Last month, HTC posted its hrsL ever quurLerIy neL Ioss und could lose more than T$1.62 billion this year, according to SmartEstimates. Many view these companies past triumphs as incremental at best, and coincidental at worst. The popularity of smaller, web-friendly notebooks in the late-2000s, pioneered by Asus, was a stepping stone to the tablet wave later unleashed by Apple. Similarly, HTCs early dominance in the market for Android, Googles mobile oper- ating system, is viewed as mere good LImIng: IL wus hrsL Lo oer a genuine iPhone alternative. Now, Taiwans progression up the innovation ladder has stalled, with potential economic fallout as contract design and manufacturing shifts to main- land China and elsewhere, where costs are lower and talent plentiful. The irony is that Taiwan has played its back-end role to great success for decades. According to Mark Stocker, a Taipei-based branding consult- ant who has worked alongside IocuI hrms Ior Lwo decudes, Taiwans economic miracle was built on a simple formula oI hndIng u producL, mukIng it cheaper, getting those orders - LIen hndIng LIe nexL producL and doing it all over again. Stocker and others believe this process has become dogma Lo TuIwunese LecInoIogy hrms so much so that they fail to understand that customers now want more than just low prices and a long list of features. Taiwanese bosses dont re- ally have an idea how to make a more appealing product based on emotional value, said Albert Chen, a former industrial designer for Acer and a design consultant for HTC. He compared Taiwans product creation process to Samsungs, where consumer lifestyle is a key consideration. WIen go Lo dIerenL exII- bitions, whether its electronics or design shows or consumer shows, I rarely see Taiwanese designers or developers or product planners. I just see people in execution level, top management, Chen said. Theyre good at business strategy, but this is not the way to create a good product. I n putting technological muscle ahead of consumer taste, Taiwanese designers are forced to work around what engineers want the opposite oI Iow AppIe operuLes. ConIcL is common in an environment where designers strive to think outside the box and managers ure sLIII hxuLed on cosL-perIor- mance ratios. Whats odd is that when we have discussions with project managers at Asus or Acer, they say dont worry about our product image, said a senior designer at a large ODM, who didnt want to be named. The project managers, most of whom have engineering or R&D backgrounds, dont trust their own in-house designers. Benjamin Chia, Taiwan-born cIIeI creuLIve omcer uL eIemen- tal8, a Silicon Valley-based design consultancy whose client list includes Samsung Electron- ics, Microsoft and Motorola, says Taiwanese designers struggle to gain respect in the corporate hierarchy. Upper management knows nothing about design, so they have designers over-explain and over-simplify, he said. The product loses its design purity. A manager at Asus said the company invests little in prod- uct design or consumer interac- tion, placing most emphasis on price and gadget spec. Our strategy basically boils down to copying our competitors products and adding one more feature or making it cheaper, said the manager, who was not authorised to speak for the company, so didnt want to be named. For many, the only way for Taiwan to break from being a brand-free zone is to make the sort of deep, years-long invest- ment in product innovation that Apple, under its design- obsessed founder Steve J obs, did for decades. Especially crucial, say indus- try experts, is gaining control over the entire user experience of a product, from hardware to software to advertising to sales outlets. Apple, for example, designs its own chips and operating system, and has a commanding retail presence. And Samsung boasts a strong grip over its sup- ply chain, and has a tradition of end-user products that has built a reputation among consumers. For Taiwanese companies to succeed at talking to the aver- age customer, price, spec and tech need to take a backseat to image, design and message, the experts say. What they havent realised is that theyre still using a cost- performance mentality to build brand, Stocker said. Thats just not working anymore. Reuters Myanmar Summary A modeI dispIays a ASUS's Eee PC 1U15PW Sirocco netbook during a media Iaunch in Taipei. 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November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com INTERNATIONAL BIZ 18 LS MunoIuctorers ReIushion Themselves As 'LiIestyle Brunds' James B Kelleher C all it concealed-carry chic: With all 50 US states now permitting people to pack pistols in public, it was only a matter of time before some company came to market with an apparel line targeting the gun-toting crowd. Remington Arms Co, which Ius been mukIng hreurms for nearly 200 years, has just unveiled a collection of cloth- ing and accessories, including the Smoothbore Field Coat ($1,295) and the Double Der- ringer Leather Vest ($300). I n drawing a bead on the apparel market, Remington becomes the latest US manu- facturer to try reinventing itself as a lifestyle brand as a way to bolster its bottom line. Next up is Winnebago I ndus- tries I nc, the US maker of mo- torhomes and trailers. I n Octo- ber, the Forest City, I owa-based motorhome maker announced an agreement with Brandgenu- ity, a New York-based licensing agency, to put the Winnebago name on a range of outdoor fashions and camping gear. We stand for quality prod- ucts and a fun lifestyle, Randy Potts, the companys chairman, chief executive and president, told Reuters. We think theres an opportunity to leverage that beyond RVs. As Remington and Winne- bago step into the market for soft-good extensions of their hard-metal brands, they may have learned from the successes - und LIe mIshres - oI oLIers that have gone before them, including Caterpillar I nc, Deere & Co and Harley-Davidson I nc. History suggests success can be elusive for such brands, which do not always transfer well onto products cut from cloth. Remingtons line of clothes und uccessorIes - oered by catalogue but also available on- line includes everything from u hve-pIece IeuLIer Iugguge seL complete with gun sleeve and pistol case ($1,675) to a cotton- twill shooting shirt ($150). Perhaps the most eye- catching part of the collection is the Double Derringer Leather Vest with two zippered am- bidextrous concealed weapons pockets. Not sure how that works? No problem. The catalogue features a picture of a grim-looking male model, eyes cast to the ground, drawing a blued-steel semiau- tomatic pistol from one of the secret pockets. Remington, which can claim to be one of the oldest US man- ufacturers and still operates a plant in I lion, New York, where the company was founded, says it took the plunge in response to customer requests. Our history is one of building hand-forged, craftsman-like quality products, said Ross Sal- darini, the companys general manager for lifestyle products. So when our customers asked us to build them some additional products, some ap- parel products, we decided to create a brand for Remington that would try to capture some of that heritage and history. TIe benehLs oI bruncIIng ouL range from simply building brand awareness to increasing sales of core products, said Adina Avery-Grossman, a part- ner at Brandgenuity. I t can also create a healthy revenue stream an attractive proposition for companies like Caterpillar, Winnebago and others that are struggling for growth in their core businesses. Deere, Caterpillar and other companies do not disclose roy- alty receipts. Thats a highly conhdenLIuI number, suId Mark J ostes, the head of Cater- pillars retail business develop- ment group. But the revenue can be substantial. J ostes estimates Caterpillars authorized licensees includ- Myanmar Summary A modeI presents ofciaI CaterpiIIar Iicensed appareI and footwear. CaterpiIIar is drawing a bead on the appareI business, becoming the Iatest US manufacturer to boIster its bottom line - and leverage the passion some customers have for its products - by reinventing itself as a 'lifestyle brand'. C a t e r p illa r C a t e r p illa r ing Wolverine World Wide, Summit Resource I mports and Toy State sold $1.1billion in Cat-branded merchandise last year. Cat has moved from simply licensing merchandise to ap- proving nearly 75 retail stores around the world most in Central and South America and the Caribbean. I f you go to England, Chile, China or the Middle East, if you say you work for Caterpillar, theyre likely to say, Oh, the footwear and apparel com- pany? J ostes said. I ts not just hats, T-shirts and boots. Although Deere shies away from most food products I t spoils ... and our leadership has come to the conclusion that the results of those sales are not worth the challenges, said Dale Paschke, Deeres manager of brand licensing the Moline, I llinois-based farm equipment maker has allowed a company to sell J ohnny Pop popcorn, featuring a picture of one of the companys green and yellow harvesters on the package. Fans of Caterpillar, mean- while, can now buy the Cat B15, a rugged Android 4.1 phone designed and built by Bullitt Mobile. And J ostes hints a Cat- branded laptop may be next. There are some risks. I nci- dents like the collapse in April of a Bangladesh clothing fac- tory that killed more than 1,000 workers created a reputational backlash for the retailers and apparel brands connected with the plant though none of the manufacturers that have moved into apparel saw their brands connected to that disaster. Another potential pitfall: Companies must ensure prod- ucts carrying their names are consistent with the core brands values. Caterpillar, for instance, is about empowerment and au- thenticity, according to J ostes, while Winnebago is about elegant design, according to Avery-Grossman. To date, the downside risks have proved manageable. Weve never seen a licensing program undo or kill a brand, Avery-Grossman said. Deere has balked at pitches to market J ohn Deere-branded duct tape and lighters. Another no-no: booze, even though much of it is distilled from corn harvested by Deere combines. We turn down many op- portunities that could be much more prohLubIe Lo LIe busIness because we dont think its appropriate for our brand, Paschke said. 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INTERNATIONAL BIZ 19 November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com Google LiIts Post-Nokiu Hopes With $6oom Iinnish Investment G oogle will invest another 450 million ($607 million) over the next few years in a data centre in Finland, boosting a country struggling with Nokias decline and weakness in its paper and steel industries. The investment is in addition to 350 million the worlds No.1 I nternet search company has already spent on the data centre, built on the site of paper company Stora Ensos former mill in Hamina, southeastern Finland. Google bought the mill in 2009, turning it into one of its mosL emcIenL duLu cenLres by taking advantage of the Bay of Finlands chilly seawater to cool its servers. Prime Minister J yrki Katainen said the move showed the coun- try, with its highly skilled work force, remained competitive. We have an excellent educa- tion system. Finlands strength Is In hndIng creuLIve soIuLIons to global challenges, he said last week during a visit to the site. Finland has one of the few remaining triple-A rated econo- mies in the eurozone and was initially seen as being sheltered Irom Europe`s hnuncIuI crIsIs. But Europes prolonged downturn has hit exports and accelerated a decline in indus- tries such as forestry, tipping LIe currenL uccounL InLo dehcIL. The government has forecast GDP to contract 0.5 percent this year. InIund`s conhdence wus dealt a blow in September when Nokia struggling for years to catch up with Apple and Samsung in smartphones announced it was selling the handset business to Microsoft. With the exception of some gaming companies such as Rovio of Angry Birds fame and Clash of Clans developer Supercell there have been few growth companies to replace the declining fortunes of Nokia. The Hamina facility employs about 125 people, and Google said it was looking to increase sLu over LIe comIng yeurs. Companies such as Facebook and Google have been expand- ing their data centres and looking for cheaper ways to run them. Finland and other northern European countries have been popular sites for data centres due to cooler climates that help to reduce cooling costs. At the Hamina facility, one of around 13 Google data centres in the world, seawater is pumped through the facility to dissipate heat from the data centres servers. The water is then cooled down before being returned to the sea. There are also environmental considerations. Around 2 percent of global greenhouse gas emissions come from the technology sector. Of that, data centres account for around 17 percent, according to the Global e-Sustainability I nitiative, an industry-sponsored research group specialising in topics such as climate change. The increasing use of cloud computing, which allows software and services includ- ing email and online music IIbrurIes Lo be oered over LIe I nternet, is seen driving up the use of data centre usage in the coming years. Microsoft has said it will invest more than $250 million in a new data centre in Finland. Yandex, Russias biggest search engine, started build- ing a data centre in Mantsala, southern Finland, in J uly. Reuters Myanmar Summary Aodi Sticks to Prot Murgin Goul espite Costs oI Growth Aims to hit 1.5m sales target in 2013, two years early G ermun Iuxury-cur muker AudI sLuck Lo ILs IuII-yeur prohL LurgeL even us IIgIer cosLs oI pIunLs und LecInoIogy InIcLed a double-digit drop in third-quarter earnings. The Volkswagen-owned division is pushing costly overseas expan- sion, adding capacity in China, Mexico and Brazil as the brand aims to topple luxury-sales champion BMW by the end of the decade. Audis second Chinese factory will start production at the end of the year while the carmaker is spending almost 1billion ($1.35 billion) on a new site in Mexico to build the next generation of the Q5 compact SUV from 2016. Were making high upfront expenditures and investments now and in upcoming years in order to create an even stronger global posILIon Ior AudI, hnunce cIIeI AxeI SLroLbek suId In LIe quurLerIy earnings statement last week. AudI reumrmed ILs gouI Lo ucIIeve un operuLIng prohL murgIn uL the upper end of a target range between 8 percent and 10 percent LIIs yeur, even us LIIrd-quurLer operuLIng prohL pIunged 1; percenL to 1.10 billion, missing the lowest estimate of 1.13 billion in a Reuters poll. ProhL Irom AudI, wIIcI uccounLs Ior ubouL qo percenL oI VW group operating earnings, funds the parents drive to surpass Gen- eral Motors and Toyota as the worlds biggest carmaker by 2018. Daimlers Mercedes-Benz, which also includes the Smart city-car brand, posted a 23 percent jump in third-quarter earnings before interest and tax (EBI T) to 1.2 billion. However Audis third-quarter operating margin of 9.4 percent beat the 7.3 percent return on sales at Mercedes. Audi, based in I ngolstadt, Germany, also stood by a goal to hit its sales target of 1.5 million cars and SUVs in 2013, two years early. Reuters Myanmar Summary ..: .~: ~:.. . , ..:.~~ ~ ~ , ~.q ~ _. ~~ .:. .:.. ~~ e. ...~ ~:.~ ~ . ~. ..:.~._~: :.,.-~..~:.~..._..,. ~.._e...: Audi -~. . . ~: ~~ .~_.~ ..: .,..~~:. _._.q,~~~ .~..:_._e.._~:..q._. Volkswagen . . . ._ . . , .~. . _e. ._ Audi ._ ~, ~ . .~. ~ .. q:~...:.~~..~:..q:..q.~.~,...,.~.._e. ._ BMW~:.e_..q,~~~..eq._.:.. . , .. . .:.~ _.. . .,_. .~ , ~.q ~ .:. _. ~~ .:. ._~: .. q._. Audi -~, ~ . . . ~ e.~ , ~.,_ee...~,~..:.~:~:.~... .:.~ .~ ..: q ~ . :.._ _e. _. ..~ . ~ ~ ._ .~~'. . . . ._Q5compact SUV ..:.~:~:..:.~:~...:..q,~~~e, ~ .e ~..q~, ..'.: ~., .e, ~:. ~.._.:.._~:..q._. .:._...:.~~ ..,.. . . .:_. .~ ~:..~: ~ ..:..q, ~~~~.. .q ~ .:._. ~ . .. . .q..._.....:.~_....,._~:._:.q.~_~ . ~~~.._e.._ Axel Strotbek . .,.._~.~~._.:_~:..._. Audi ~.,_e ,.-~_.~...: . , ..~ ~:. e. . . ~~ . q:. .,.. ~~q:..,._~:.qq,..:.,.:.. ..:._.~~e....~~:.~~_.~ ..: ~ q:..,. ~... ~: ..:~~:._e e, ~.~~ .eq ._~:. .q._. A CoogIe data centre. F ile s A modeI poses in an Audi Nanuk Quattro concept car during a media preview day at the Frank- furt Motor Show. K a i P f a ff e n b a c h / R e u t e r s .:._ . . .:.~~ . . . e ., . q .~ .~.~ ~.~ . ~:~. . ~ e, ,~ ..e ~..q~, ..'.: '~ ..e, ~:. .,:~. q..._.... _....:..__e.._~:. .q._. ~..|q..._....._ ~. :,.|~ ~, ~~:,~q:.e...,._~._e. ._ .- .,:~.q..._.... ~.._e._.. e.~ e, ,~ ..e ~._. ~..| .~.~.~~.~ . ~:~ q .. ._. . . :._. ._e. ._~: . . q._ . StoraEnso - . . , .~:. ~~ ...~ .. ~ee._.. .....:q_ ~.~:... .~. ~.~ ~.~ . ~:.:.~_e. ._.: .. ..._.~,_~... J yrki Katainen ~ e.~. q..._....._ ... ..: q_ _. .:...: . . .:.~ ~:. . e _. . . . .~ . ..| ... _ . ~~~ ~~.q..._e ._.:_~:.. ._.,.~ . : .,.:.~:..,..: ._:.q..,.q.,_.. e.,- ~:. .:.~ . : ~.:...q:.,..'.~ .:.~:. ._eq..._ ,_.....:. ~:. e,~...~ q:.e_..._e. ._~: .._. .~ .~ ._.:_~:.. ._ . e.,.._ e,~,~ ...:. .q.~._.~.,.~:.~. q. ~ . . :.._ .~,_.e. . ~. . _e. _. . _:.q.~~. ~~_. ~ ...:..q..e,.~: ~:~e .. ._ . ~. . ._ ._ e. ._ . . ..: ._ . .q:.- . . . :. .q. ~... .~~..q__~:.~ .~, ~ . . . ~ ~ . . _.. ~ ~ ~q , .._.~~...._. November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com INVESTMENT & FINANCE 20 Who Will Leud the Next Boll Murket? David Mayes T his is a very interesting question which will inevi- tably make those who an- swer it correctly have the gump- tion to put their money where their mouths are very rich. I dont have the answer unfor- tunately. My two boys are very rambunctious and smashed my crystal ball over the weekend, so unfortunately we will need to try and explore this issue with a little commonsense and a look back at the history of the last few bull markets. IrsL o, wIuL reuIIy cuuses u bull market? Some would say clever and collective marketing by Wall Street, combined with mass stupidity on the part of the masses. I myself have been the victim of a good story underlining the case for an investment which in the end turns out to be nothing more than a very good story. The dot com companies were probably the best story in recent times. There was in fact some truth behind the story, as the internet really has changed things and LIe worId reuIIy Is u dIerenL place because of it. Unfortu- nately that is not akin to www. watchmygrassgrow.com being a good investment when it has never booked any revenues, let uIone prohL. The next big bull market that came crashing down in 2008, in my opinion, really was sold to the public with the under- pinning of another great story. The US real estate market has collectively never had a down year was a phrase I remember being repeated again and again by various talking heads on CNBC over the years I sat glued to my trading desk back in the real world. They really made a compelling case for mortgage backed securities and boy were those homebuilders on a tear back then. I nvestment banks were also making coin like never before, but unfortunately even the greatest of parties must eventually come to an end. They say the most dangerous words in investing are this LIme Is dIerenL, und wIIIe IIs- tory doesnt always repeat itself exactly it sure does rhyme very weII In LIe hnuncIuI murkeLs. While the story told to fuel these past two bull markets were very dIerenL, LIey boLI Iud one thing in common. There was some form of a real change that allowed the public to not only get excited, but to believe. n LIe hrsL cuse IL wus LIe rIse of the internet and all of the very real business opportunities that have in fact come about because of it. Unfortunately people collectively departed from all traditional sense with regards to investing in publicly traded companies. I n the sec- ond instance it was new and esoteric investment vehicles that the public had not been either aware of or able to invest in, and it was sold to them as a sure thing. One lesson to come away from that episode is that when Wall Street starts to market something as a sure LIIng, Lry Lo hnd u wuy Lo prohL when it eventually goes horribly wrong. There are some very excit- ing changes happening in the world today, the most exciting one in my opinion is 3D print- ing. The leading companies in LIIs heId ure uIreudy LrudIng at unbelievable multiples, but while I would personally avoid them it may give a clue as to where the next bull market will come from. Plain vanilla manufacturing companies have taken second seat to technology hrms Ior quILe some LIme now, but where we may see the great- esL benehLs In LIe IuLure couId very well come from this sector. After all, they will be the ones wIo benehL hnuncIuIIy Irom what all this new technology can do, assuming they keep up to speed. I f the well-established munuIucLurIng hrms cun In fact realise huge cost savings over the coming decades, there is an argument to make that they are currently mispriced in the markets. Could the boring companies that manufacture uII LIe sLu we uIreudy enjoy really become a compelling enough story to fuel the next bull market? I am not so sure, but I am sure that keeping an eye on the changing business Iundscupe und LIe SEC hIIngs of what the investments banks are actually buying themselves (more on this to come) is prob- ably a good way to increase your odds of getting in early on the next darlings of Wall Street. David Mayes MBA provides wealth management ser- vices to expatriates throughout Southeast Asia, focussing on UK Pension Transfers. He can be reached at david.m@ faramond.com. Faramond UK is regulated by the FCA and provides advice on pensions and taxation. Views expressed here are his own. Myanmar Summary V ic t o r ia C a t t e r s o n ..~:...~~~ q..._..._.. ._ ~~.~_.~.~:..:. qq. .. ~. e~ ~ ._. . , .:.q . q ._ ~._.~.,.:.. _~.~ . ._ . Bull Market . ._ . : . . , .~_ ~..- ..~:....,..:. ~..~, _.~~.:_.. .~.:..~ ~..| qee:.:.~:. ~_.~. ~ee ._ ~._.~.,~.q.._e.._. ~~ . . . .:.~ ,_ .._:~ ~: ,~ ~ . ~ .:. ..'..|~ .:_.. ~,:~ - ~.:.~.:.~:.~..~_e. . ~.:.~ .~._~_.. e...,. .:.-..~: q e e:.:.~ ~_. ~. ~e e . _~._ . . ~e e . ._~: q e e:.... , ..:.. :._ . ~..~, _. ~~ .:. ._ .~ . ~ ~.:.. ~., _e . .:._ ~. ~. .:.. _: .q. e ._.~_ ..:~ . .. .:. .:. ._~: ..,..:. _...q_.. qee: q.:.._._. ,.,:..,...:.. _~ .~ . q._ . ..~: ...~ ~ ~ q .. ._. . . . .:.~.,_e . . q .. . _. . . ._ . . , .q e e:.:.. .~ .~ _....,.,.,:..:.._~.~..|~ . .~: .. .~ ~ ..:.:~. :.~ ._..q:.q,.~.._. . ~.:.. ~.,_e ~ ~...:..: .~.~.~~.~.:.~ .qe q e e:~e e . .:. _.. . _ ~._e q .. ._. . . . ~. :..:.~ _~ .~ .,_~ q._ . . . , .~. . . .~ .~ _ .~..:. ~..'.:. ~..| .~.~:. ~.,e .~..q_~ ~: .~.:..~ .~.e_~__.. q e e:~e e . _.. . _ ~._ ~.| q e e:.. . ., . .:.. : ~..~, _.~~._ ~._.~.,. .q:~q .:q._ .,_ .._:~ . ~ .:.~., _e ~,:~~.:~:. ~.,~~e . ._.:......:._. ~.~ ~.:..~.,_e ~.~..~:..:. . _:.q.~_ ..:~ . ~:.,_. .~._~: _...q._. ~.:.~. ~~ ..._ ~..q ~,- ~._.._...,..:. ~....: ~. :_:.q.~~.~~_ .~:.. . ~ .q:~ . ._ . ~ .:.~.,_e .... ~ ~. e ~~ ....... _.. . ... . .:.. _.,._........_~.| ~ .:..| . ., .,. ,:. .:. _e. ..'. _. . ~.:_:.q. ~~.~~_.~ _e. ..'... ._ . .:._ ~,:~ ~ 3D Printing . ~,~...~_ .:.. : ..~:...~~~ .~.:. ~:,.~.:.._ Bull Market .:. _e..:.._. Myanmar Company To Sell Shures To Poblic Soon O ne of the two Myan- mar companies which formed a joint venture with two J apanese conglomer- ates to develop the Thilawa special economic zone (SEZ) will start selling its shares to the public soon, according to an omcIuI medIu reporL. No duLes were specIhed Ior the move in the report. Two Myanmar companies and two J apanese companies established a joint venture en- tity, Myanmar-J apan Thilawa Development Co Ltd, in Tokyo on October 29 to carry out the SEZ project. The two Myanmar companies are the governments Thilawa SEZ Management Committee and the Myanmar Thilawa SEZ Holdings Public Co Ltd, while Kyaw Min LIe Lwo Jupunese hrms ure MMS Thilawa Development Co Ltd and J apan I nternational Cooperation Agency (J I CA). Myanmar and J apan will hold 51and 49 percent of the shares of the project respectively. The J V company will start ImpIemenLIng LIe hrsL pIuse of Thilawa SEZ in mid-2015. The project includes factories, IIgI-LecI hrms, LexLIIe, Iubour intensive and manufacturing industry. The 2,000-hectare project lies between Thanlyin and Kyauktan townships in Yangon region. The J apan I nternational Cooperation Agency (J I CA) agreed to provide a loan of 51 billion yens under the J apanese governmenL`s OmcIuI DeveIop- ment Assistance (ODA) to My- anmar in J une 20 billion yen of which is for developing the infrastructure in Thilawa SEZ and the rest is for upgrading power grids and power stations in Yangon. Myanmar Summary ..~|~....:..q.~,~:. .e: ..:q,~~~ .,.- ...:. .q.~~:.._~..... ....|.:. ._ _.,.:~.~ .~,~. ~.~~..- qee:.:.~:. .~ .q: .. . _ . . . . :.._ _ e. ._ ~: . ~q:.~ .~ . ~ _., .~ .:.~q .q._. ~. .| q e e:.q: .. . .:.~:. ._._~.,~ _....:.._. ._~.~~:. ..qq...._~:. ._. .q._...~|~....:..q. ~ , ~:. ~.~: ~_ .e: ..: q~q,~~~ _.,.:.. _._~. ~.~ .. .,.-~.~.. .~._~~.~....|...:q ~ . ~. . ~ _.. . :.._~:..q._. INVESTMENT & FINANCE 21 November 14-20, 2013 Myanmar Summary Contd. P 23...(Parliament) Myanmar Business Today www.mmbiztoday.com Visu Set to Luonch Molticorrency Truvel Prepuid Curd Phyu Thit Lwin A merican payment network giant Visa said it is working closely with Myanmar bunks Lo IuuncI LIe hrsL Visa Multicurrency Travel Prepaid card for Myan- mar cardholders to use when travelling overseas. Visa said the upcoming launch will mark another milestone in the countrys hnuncIuI sysLem, openIng the global marketplace to the people of Myanmar who are travelling inter- nationally for business and leisure. The Visa Multicurrency Travel Prepaid card will allow cardholders to load up to three currencies (Euro, US dollar, SG dol- lar) onto a single card. The card can be used for overseas transactions an- ywhere Visa is accepted, or to withdraw cash at about two million ATMs worldwide. The card also allows locking in exchange rates before travel to avoid currency ucLuuLIons. Cardholders can load up to $5,000, while the card is reloadable with chip and PIN protection. Somboon Krob- teeranon, Visa Country Manager, Myanmar and Thailand, said it is criti- cal to provide payment innovations for Myanmar travellers to use abroad. This progress is the result of the vision and partnership between My- anmar banks and Visa to modernise payments for the people of Myanmar. In the past year weve seen tremendous growth in the development of the local banking sector and we believe the po- tential remains high for Myanmar to leapfrog tra- ditional payment systems und deveIop u hnuncIuIIy inclusive infrastructure LIuL wIII benehL LIe wIoIe country. According to a Visa survey, the majority of business travellers prefer paying with a card when travelling because its saf- er than carrying cash or travellers cheques, while leisure travellers like pre- paid cards because they can be used to withdraw cash at ATMs, make pay- ments in stores and make payments online. Visa is committed to introducing the products that are most relevant to the people of Myanmar. Visa will continue col- laborating with Myanmar banks to enable the introduction of additional payment products in the future, Krobteeranon said. Since December 2012, when Visas payment system was introduced in Myanmar, transactions on Visa cards by tourists, inclusive of ATM with- drawals, have accounted for $15 million, Visa said. Visa cardholders can withdraw cash from more than 250 ATMs in Myan- mar, and make payments at about 600 retail points across the country. Purliument Lrges Plun to eul with Ministeriul ebt M yanmars par- liament has called on the government to come up with a plan to deal with an estimated $1.1 billion in ministerial debts that was collected during the countrys many years under military rule. 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Z e y a T u n / R e u t e r s U A u n g / X in h u a November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com INVESTMENT & FINANCE 22 CB Bunk Luonches Truvel MusterCurd C ooperative Bank (CB) last week launched EASi Travel MasterCard, be- comIng LIe hrsL bunk Lo Issue such a travel card in Myanmar for citizens travelling overseas. An amount ranging from $50 to $5,000 can be preloaded in the card and used outside My- anmar, the bank said. Kyaw Min The launch of electronic payment systems for Myanmar citizens in a short period of time by CB Bank will be available to travellers who visit foreign countries, U Myint Swe, chief minister for Yangon region, said at the launching event. He said the deal between CB Bank and MasterCard will sLrengLIen LIe hnunce und banking industry of Myanmar. Kyaw Lynn, executive vice chairman and chief executive of CB Bank, said, Just as our country is opening up to the world, at the same time, the world is opening up to us and were seeing more and more locals travel abroad. This will make their travels safe and hassle-free without the worries of carrying large amounts of cash, he said. According to the MasterCard survey of Consumer Purchasing Priorities, nearly two-thirds of Myanmar people who have travelled abroad intend to do so again within the next 12 months, making the introduc- tion of a prepaid travel card timely for the market, it said in a statement. US payment network gi- ant MasterCard launched its services in Myanmar in November last year, making it LIe hrsL InLernuLIonuI eIecLronIc payment card in the country. Privately-held CB Bank was the hrsL uuLIorIsed bunk Lo oer services with the card. Tourist and business travellers with MasterCard, Maestro or Cirrus cards can now withdraw money in local currency, kyat, at 36 CB Bank ATMs across the country. MasterCards American rival Visa Inc followed suit in De- cember last year, while Chinas largest payment network China Union Pay (CUP) and Japan Credit Bureau (JCB) launched their services in February and September respectively. The introduction of the four international payment cards followed the introduction of Myanmar Payment Union (MPU), a payment network comprising 17 domestic banks, in September 2011. MPU debit card was introduced for services domestically in September last year. Myanmar is also aiming to introduce MPU card for use in foreign countries in 2014 in a bid to facilitate Myanmar citi- zens travelling abroad. Myanmar Summary CB ~. EASi Travel Master Card ~:. . , . ._ ~.~ ~ .~ ~...._.. _.,.:.~ ._.:. . .q .. :..:._ .~ ._ . .:. .:.~~~ travel card .:.~:. ..... ~...._ ~~.. _e..:._~:. .q._. ~..| travel card ~ ~..q ~,..'.: ~ . ~~~ ~ _~~ _e_..._.._.,.:._..~.|~ .._...__e.._~:..q._. ~ .~ .q:,. . ....,. ~:. _., .: ..:..:.~~~ ~.,~~~. CB ~. _........_.. _._. . .:.. .q .. :..q:~ ._ .q .. :. .:. ~.._..:.._e q,~,~. ..._~.~,_~... ._...~ ._.: _~:..._. CB ~. MasterCard ~- ..:~_.~._ _.,.:.- _:.q.. ~..,.~~:. .. ~ ~:..~: ._. . . .:.:... . ._ e ,.~ .~.~._.:_~:..._. CB ~- ~_~.~~~.._e.._ ..~: . .~ _., .:. ~.,_e ......:._~~~ ._.:. . .q..:..:..:. ...:._.:..: ._~:. ._.:_~:.._.. e.~. travel card .:. ~ ..._. .~:._e .._~. ~.:.~_.:.~ .e..:.q:.. .~.....~ .:. : .q .. :..:. .__e.._~:. .~.~._.:_ ~:.. ._. Toshibu Looks to Myunmur Growth us Purt oI SI Asiu rive J apanese electronics giant Toshiba is making moves to move into Myanmars growing market, as demand for its products in the countrys growing economy continues to expand. Hiroyuki Sawada, president of Toshibas Thailand arm, said that it currently has about 10 infrastructure and power- generation projects underway or negotiation with government and pri- vate sector companies in other countries in the re- gion including Indonesia, Vietnam and Malaysia. Toshiba has made much progress in the Southeast Asia region in recent months, for example setting up a sales op- eration in Bangkok which would take charge of its infrastructure and power- generations systems, as well as announcing the opening of its Myanmar omce. Shein Thu Aung Before the Bangkok move, all business transactions involving power and infrastructure systems were conducted from the companys head- quarters in Japan. Additionally, operations for power-system subsidi- ary have begun in Malay- sIu und suIes omces Iuve been opened in Indonesia as well as Vietnams two largest cities Hanoi and Ho Chi Minh City. Toshiba has been op- erating in the region for the last 44 years, since it opened ILs TIuIIund omce and is the global market leader in a range of indus- tries, in particular power plants. Japanese companies have been hugely suc- cessful in moving into Myanmar since the coun- try began opening itself up to foreign investment in 2011. A number of companies from Japan, including Hyundai, Nissan and Mitsubishi have began operations in the country while many Myanmar Summary Japanese companies have been successful in being awarded tenders granted by the government, purLIcuIurIy In LIe heId oI infrastructure. .,.-~.~.q:,. ..,._~.~.._e.._ ~q :._ _.,.:.-e_e.~. ~~.:..:...~~~ .. , ..:. ..: q ~ q, ~~ ~ _~ ... ..,_. . _., .:. ~ , .- ~ ~ , .:.-~e . ~:. . . .~: .. , .:q, ..: . :.._~:.._. .q._. ~ q :~ . ~ - .. ..,.. ~__e.. 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H o s s a in y INVESTMENT & FINANCE 23 November 14-20, 2013 Myanmar Summary Myanmar Summary From page 21...(Parliament) Myanmar Business Today www.mmbiztoday.com Thui Inergy rink Muker Iyes Myunmur Plunt T hai energy drink maker Carabao Tawandang, the manufacturer of Carabao Dang energy drinks, is planning to open factories in Myanmar In LIe nexL LIree Lo hve yeurs, u Lop compuny omcIuI wus quoLed in the Thai media as saying. The company is also consider- ing the building of a factory in Cambodia, a central part of the companys plan to penetrate other Southeast Asian markets. The planned factory in Myanmar in the next three to hve yeurs wouId gIve Curubuo Tawandang a production base for exporting its energy drinks into South Asian countries such as Bangladesh and India. Output from the companys planned factory in Cambodia would cover that market, as well being exported to Vietnam. Thailand, however, will remain its main production centre for the ASEAN market. Carabao Tawandang manag- ing director Sathien Setthasit said the company would also increase the production capac- ity of its Thai factory by 40 percent, in line with the goal Aye Myat of making Carabao Dang the No.1 energy drink brand in the ASEAN. Setthasit said the projected investment for the companys future expansion is more than $33 million, while the Myanmar factory will get an investment between $6 and $10 million. He said the company aims to increase its sales up to tenfold in the future, rising up to 50 to 60 million bottles a month. Setthasit hoped having a fac- tory in Myanmar will enable the company to sell drinks at a cheaper rate in Myanmar. Carabao aim to become the top-selling energy drink brand in the ASEAN with annual sales of $500 million by 2018, from $233 million targeted this year. that were borrowed from central government in the years that the country was run by the military junta, which came to an end when a quasi-civilian gov- ernment came to power in 2011. It was reported that the Ministry of Agriculture and Irrigation owes the largest amount of money, an estimated $400 mil- lion, with the Ministry of Electric Power next with debts of $270 million. The report was pre- sented to parliament by the Public Accounts Committee and urged the government to develop a plan for the ministry to clear the debts. Speaking to local media group Democratic Voice of Burma, Aung Tun Htet, economic advisor to the president said that it would be a challenge for ministers to resolve the situation as the money had been borrowed long before the current minis- Lers Look omce. A coIIecLIve eorL Is needed to sort out this issue it could be tough for the current ministry omcIuIs Lo resoIve LIe debts incurred through- out previous years and .. - . . .~:._e_ ~. q_ ~ . . ._ . . , .~. . _e. ..: Carabao Tawandang ._ _.,.: .~ .:._ , ... ..~~. .~ , .:. ~_ .: . :.q, ~~ ~ _...,._~:. ~.~- .~,. ~...:~..~ ...e:.:.. ._.:_~:..._. e.~.~~.,_e ~..:..e:. . ~ ._ . .~ , .: q, .~ . ~.,_.. ~.q.~:~:q...~~ ~ ..,. ....:...q, ~~~ _~......:q~.,._~:. . q._ . _., .:. ~ .~ , .: .:.q, ~.~.q_.. .:...q. ~.e..:.~. ~:q~.e.. ..:.. ...~:._e_~.q_.:. ~ . . q, ~~ ~ _ ., .:. ~:. ~.~~...~._..~.,q:~.. ~_e. :.qq, ..:.._~:. .q ._. ~..:..e:..~ .:q, q_qe:.._ .~,.._. ~..| ...~ ~ .:.~~ ~ ~.:~ ~~ _e. .:.._~:. .q._. ...:._. ~.q .~: ~:q ...~ ~ ~~ ~ . .._ ~.~~....,q:~.. ~_e. ~,q.,..__e.._~:. .q ._ .CarabaoTawandang-., ., ..|,~~:_e.. Sathien Setthasit ~~ . ~ ~.,_e .. .~ , . ~ .....:~~:.,~q:..,.~~. _. ..: q ~ . q, ..: . , .:. ._ . T h o m a s F u lle r / N Y T they will have to conduct a detailed inquiry into past spending, Aung Tun Htet reportedly said. .. ~. . q.~ .~:~ ~ _.,.:.._ ....|..:..: ~.q:~ . _. . ~. .|~. , ~:. ~~. ~,_~._:,.:.. ...e ...: .,.,.. ~..q~, ..'.: ~.~ .e~q .,_.. e.~.| ~..q~.,_e ~..|.....:.~:. _.,._ .....q, ~.~.~.q.~ _.. . . :.q._ _e. ._~: . . ~ .~:. ~~~,..._~:. .q ._. ~~,~~, _:.q...- ~...q~.:.~ ...._... ..: _._.:..:q..... ,.- ..~..~..~q ~,_~. _:, ~ .. ..~..q.~ ~ ~~ . .. .e :.._ .....:.~:. _.,._..... q, ~,q.,...._~:. .q ._. ~..|..~..~q .e e:. ~ . ..q.. ._ ._ .: . ~,_~._:,. ....~.:... _., ._ ..... q, ~, q .,~: ~..q~,..'.: ,~~ ..e ,..|.q.,._~:. .,.,..qq_.. . . .. . . .~:.~, _ ~ ._:,. .... ~ ..e~ _., ._ ..... q, q .,...._~: . ._. .q._. November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com 24 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 3 5 7 DMK RGN 06:30 07:55 NOK Airlines DD4231 1 3 5 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 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN) W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN) Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline 8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI 8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir 8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN) AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia 8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN) VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN) VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN) CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN) CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG) Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN) CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG) Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN) Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN) KA251 1 2 4 6 RGN HKG 1:00 6:00 Dragon Air KA250 1 3 5 7 HKG RGN 21:20 23:35 Dragon Air 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 YGN 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 YGN 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 YGN 18:00 19:00 FMI Air Charter FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT YGN 10:00 11:00 FMI Air Charter FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT YGN 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 YGN 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 YGN 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 YGN 8:30 10:25 Yangon Airways YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY YGN 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 YGN 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 YGN 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 YGN 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 YGN 16:00 17:25 Asian Wings Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday PROPERTY & REAL ESTATE 25 November 14-20, 2013 Contd. P 26...(Myanmar Property) Myanmar Business Today www.mmbiztoday.com Muwlumyine Hoteliers Aim to Bunk on Visitor Sorge Kyaw Min T he city of Mawlamyine in Myanmars southeastern Mon state is to get more upscale hotels as an increasing number of foreign investors are taking interest in business op- portunities in Myanmars third largest city. Hotel owners in Mawlamyine said new hotels will be built to deal with the surge in both businessmen and tourists to the city, which is renowned for its rubber and marine products. Currently, there are 17 hotels [in Mawlamyine] and eight guesthouses. More and more foreign tourists are coming to the city, as well as foreign businesspeople, so we must strengthen the citys hotel busi- ness, U Myint Swe, owner of Thit Sar Hotel in Mawlamyine, told Myanmar Business Today. U Myint Swe added that re- cently Thai airline Nok Air has launched new routes connecting Thailands Mae Sot and Bang- kok with Mawlamyine, which led to an increase in foreign visitors to the city, something that the hotel industry must be ready for. Now, we are seeing new tour- ists in Mawlamyine every day, said Ko Aung Than, a Mawla- myine resident. The majority come to see popular tourist sites near the city such as Kyaiktiyo Pagoda (Golden Rock), Than Phyu Zayet and Set Se, while foreign businesspeople look at investment opportunities, he added. Muny sLu members Irom LIe hotels in the city have also been sent on security courses in a bid to provide more protection to the foreign visitors par- ticularly, since a series of bomb blasts rocked the country in October. Myanmar Summary A hotel in Mawlamyine. K y a w
M in Myunmur Property Prices Sorge As Coontry Opens Lp to Investment M yanmars emer- gence as one of the worlds great new commercial frontiers has sent property values soaring and triggered fears that all but the largest investors could be priced out of the market. A combination of an Inux oI peopIe Irom overseas and persistent land and building short- ages has pushed rates for prIme omce spuce Lowurds Michael Peel $100 per square metre sIgnIhcunLIy IIgIer LIun costs than in much more developed countries in the region such as Singa- pore, business people and others say. As u IIgI-prohIe Euro- pean investment mission prepares to visit Myan- mar in November, the price surge has prompted calls for the government to make more property available to entice poten- tial investors already wor- ried by drawbacks such as a lack of legal certainty, infrastructure and trained sLu. Part of the problem is that land and property held by the military junta during its half-century rule still lies unused and has not been released into the market, despite the transition to quasi- civilian government, diplomats and business people say. One foreigner in Myanmar who has long contacts with overseas companies said many of those staying on the side- lines had reviewed oppor- tunities in the country but gone through a process of look, listen, learn, laugh and leave the laugh be- ing at property costs. Everything is so over- priced, she said. Espe- cially if you are looking uL unyLIIng wILI u sIgnIh- cant land footprint. While rents in Yangon have been climbing in the three years or so since it became clear the ruling generals were preparing to allow the country to open up sIgnIhcunLIy, business people and oth- ers in Yangon say prices have exploded in the past year. Roger GIord, ord Mayor of London, said the concern had come up repeatedly in meetings his delegation of ex- ecutives including from InLernuLIonuI hnuncIuI and education companies held during a visit to Myanmar this month. One Yangon-based executive with regional business interests said space in some of the small number of purpose built omce compIexes In LIe S o e
Z e y a T u n / R e u t e r s . , _ ._ ,e ..: ._ . _. ,e ~ ._.:.q..._.....:. ..~.q:~ .:..:._~: ~._.e~e.:. . . ..:~ . . . :.._ _e. ._~: . ..:._._.. e~e..,...~ .,. ..,.q.:.. .q._. e. . . ..:~ . . ._ e ~e .:. ~.,_e q .. ._. . . . ~.. . . _. ._e. ~: ~~,~~ ...~ _.,.: .~ ._.:..:..:. ..~.q:~ .:._e ..:.,._.. e.~. _... _.._e.._~:. ..:e~e. .q ._...~ ._.:._. ....:~..._ e~e.:.- ~ , ~. .q ~ ~ .~ ~..:~ ~ .~ .,~: e~e. .q..:...,._:, - ._..,~._. ..:...,q ._~:. .q._. ..: ._. _. .,. ~ .~: .,.~~ ...qq..:._.~.,.... _.:..:..~~.:.~_.:..~q~e. .,_._,e~.: .q:~...:_~~:. ~~. .~. . _e~q. ~ ~ ., .. ~:.~ ~. _.:..:..~ ~.:.. ..: .. .:_ ~~ .,q:.~..q..._.... ~~ ~ .:...:~ ._.:..:..~ ._ .~.:._ ~ .~ .,q.| ~e ' ' e ._.:._ . November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com 26 From page 25...(Myanmar Property) PROPERTY & REAL ESTATE Shwe Tuong Tuke 6opc Stuke in Pun Pucic evelopment T Ie Pun PucIhc Yungon Hotel, a joint-venture agreed last week between Pun PucIhc, SIwe Tuung und City Square Pte Ltd will be com- pleted by 2016 and will involve a three-way split of investment, with Shwe Taung taking the controlling stake. The joint venture is to involve a 20:20:60 split with Pan Pa- cIhc und CILy Squure LukIng zo percent each, and Shwe Taung the remaining 60 percent. The partnership, which was formalised as part of a ceremo- ny in Myanmar last month, will see Pun PucIhc HoLeIs Group manage the 348-room, 20-sto- rey hotel, which also includes a shopping centre, residences und omce spuce. Shwe Taung Group boasts a diverse business portfolio which includes property develop- Oliver Slow ment, retail mall management, construction and construction materials, energy and infra- structure. With a workforce of 6,000 people, the group is one of the largest employers in Myanmar. Pun PucIhc uIreudy operuLes the Park Royal Hotel in Yangon located just a few hundred metres from the new develop- ment, which will be located on Bogyoke Aung San road op- posite the market by the same name and the group believes that its new hotel will further strengthen its presence within the country. The group also revealed that the Park Royal Hotel will soon be undergoing refurbishment to its public spaces, restaurants and ballroom. The new hotel will feature an extensive range of guest facili- ties including a swimming pool, spa, gym, ballroom, meeting Myanmar Summary Park RoyaI hoteI in Yangon, a hoteI run by the Pan Pacic HoteIs Croup. P a r k
R o y a l The lobby of Park Royal hotel in Yangon. P a r k
R o y a l rooms and dining facilities while the group has highlighted that IL wIII oer ImpressIve vIews oI iconic destinations such as Yan- gon river, downtown Yangon and nearby Shwedagon Pagoda. Having established an early and successful presence in My- anmar with Park Royal Yangon, we are now eager to introduce our other acclaimed brand, Pun PucIhc, Lo LIe Myunmur community and international guests, said Gwee Lian Khen, cIIeI execuLIve oI Pun PucIhc Hotels Group. Pun PucIhc uIso reveuIed LIuL it is exploring the opportunity of opening a hotel in the capital Nay Pyi Taw, which will host the 27 th Southeast Asian Games next month as well as the ASEAN Summit in 2014, two events that are expected to see a surge of visitors to both the country and the city. "With solid, proven creden- tials as a hotel management compuny, Pun PucIhc HoLeIs Group is an ideal partner for us in promoting the city's progress through prime developments," said Aung Zaw Naing, chief ex- ecutive of Shwe Taung Group. Headquartered in Singapore, Pun PucIhc HoLeIs Group oper- ates 34 hotels under its Pan PucIhc und Purk RoyuI HoLeIs. The group recently announced that it will be debuting in Indone- sia in the near future with hotels in Bogor, on the outskirts of the capital Jakarta as well as the popular tourist destination Bali. city now cost as much as $95 per square metre, roughly three times the price in Bangkok and hve LImes LIuL In PInom PenI, Cambodias capital. Research from Colliers Inter- national Myanmar, the estate agency, said Yangon had passed SIngupore`s omce renLuI ruLes oI $;q u squure meLre by LIe hrsL quarter of this year. WIen wus hrsL Iere 18 months ago it was $26 and I was thinking that was a little too high, the Yangon-based executive said. Prices are going up every few months. As in other fast-growing emerging markets where an- ticipation of a boom has sent property prices rocketing, the biggest companies from China, Japan and to a lesser degree western countries are paying whatever is needed to tap into an economy that McKinsey, the consultancy, has estimated could more than quadruple in size to $200bn in 20 years. But the cost of sending expa- triates to Yangon is becoming increasingly forbidding for other companies especially the kind of small and medium- sized businesses due to arrive on the EU investment mission. One estate agent who deals with property in Yangon said a chronic shortage of serviced apartments had pushed prices of a three-bedroom property aimed at expatriate families to about $6,500 a month up from between $2,000 and $2,500 a month two or three years ago. That is about twice the price of property in Bangkok, little more LIun un Iour`s IgIL uwuy. Tony Picon, managing direc- tor of Colliers International Myanmar, said some compa- nies were now employing half- pats as opposed to expatri- ates who lived in Bangkok but commuted to Yangon on one of the budget airlines linking the two cities during the week and stayed in lower-grade hotels. Prices will deter investment up to a point, he said. But compunIes become exIbIe. Business people and diplo- mats in Yangon say the property price rises are fuelled in part by people buying acreage in the city speculatively and holding on to it while prices rise, since there is no penalty for not de- veloping it. AnoLIer dImcuILy Is LIuL some Iund, omces und upurLmenLs acquired or built by the military during its rule have not been re- leased by the administration of Thein Sein, the president, since it took power with the generals blessing in 2011. Diplomats say Myanmar governmenL omcIuIs ure sym- pathetic to the property price concerns but have taken little action or are unable to do so because of the delicate balance of power under the countrys new government. TIe hnunce mInIsLry un- nounced in August that the government was considering new taxes to curb speculation and steady the market. Levies on property sales have also been raised but, said one for- eIgn governmenL omcIuI, LIuL`s not really the issue: its people sitting on land and not selling it. FT Myanmar Summary .q.~:. City Square Pte Ltd ~._ Pan Pacifc Yangon e~e ~:. ..:~...:.q,~~~ ~~. ~ . ...| ...: q ~ . ..: ~ _ .~~ _...._.. ~~' ...~ ~_. ..~ ..: q ~ . :.._ _e. ._~: . .q._. ~..|q..._....~ Pan Pacifc . ..,.qee: ~ q:..,. 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IT & TELECOM 27 November 14-20, 2013 Contd. P 28...(Internet) Myanmar Business Today www.mmbiztoday.com Myunmur's Promising Ixperiment With Internet Ireedom Will Greene A fter decades of rule by a brutal regime known for imprisoning cyber- dissidents, internet freedom in Myanmar expanded dramati- cally over the past year, accord- ing to a recent report by Free- dom House. The report warns that the internet in Myanmar is still not free, however, and that major obstacles remain to further improvement. One is a legacy of repression that casts a shadow on the reform process. Just two years ago, Freedom House ranked Myanmars inter- net policies as the worlds sec- ond most repressive, surpassed only by Irans, and in the same Ieugue us serIuI oenders IIke China and Vietnam. To keep citizens in the dark, Myanmars government routinely restricted internet access and censored large amounts of online con- tent, including most foreign medIu. TIose wIo dehed LIem faced severe penalties, includ- ing torture and lengthy prison sentences. The restrictions and a poor infrastructure make Myanmar one of the worlds least con- nected countries, according to the International Telecommu- nications Union. Massive cov- erage gaps, glacial connection speeds, and exorbitantly high service costs put the internet beyond the reach of 98 percent of Myanmars citizens. The good news is that the countrys leaders are now enacting dramatic reforms that promise a more open and democratic future for its long-repressed citizens. Those related to internet freedom are having a particularly strong impact. The government started relax- ing limits on content in 2011, but 2012 was the year that it om cIuIIy cIunged ILs poIIcy on media censorship. It unblocked most previously banned con- tent, including the websites of foreign media outlets that frequently criticised the re- gime, and stopped requiring journalists to submit content to government censors before publication. In fairly short order, these policy changes Myanmar, India Agree to Cooperate in IT Sector M yanmar and India will cooperate in enhancement of information technology skills, state-run media reported. A Memorandum of Under- standing (MoU) on enhance- ment of information technology skills was signed between the Kyaw Min governments of Myanmar and India in Nay Pyi Taw recently. The MoU covers conducting more training courses at India- Myanmar Centre for Enhance- ment of Information Technol- ogy Skills (IMCEITS), turning the centre into an authorised training centre of the Centre for Development of Advanced Computing (CDAC) in India. Contd. P 28...(Internet) Myanmar Summary Myanmar Summary Telenor to Bring Wikipediu Zero to Customers N orwegian telecoms group Telenor has reached a deal with Wikimedia Foundation, which operates online encyclopedia Wikipedia, to make Myanmar the latest country to be included in their existing agreement to bring Wikipedia Zero to Telenor customers. The Wikipedia Zero agree- ment means that Telenors future subscribers in Myanmar will be able to access Wikipe- Oliver Slow dias vast array of content free oI mobIIe duLu Lrum c cIurges once Telenor has begun mobile phone operations within the country. The Wikimedia Foundation imagines a world in which every single person has free access to the sum of human knowledge, said Carolynne Schloeder, director of Mobile Programmes at the Wikimedia Foundation. By working with Telenor, we are able to put this knowledge in the hands of the masses, helping to close the knowledge gap between developed and developing countries. Todays announcement will pave the wuy Ior TeIenor Lo oer uII LIe knowledge that comes with Wikimedia Zero to its custom- ers in Myanmar, she added. The two parties struck a deal in February 2012, where Tel- enor customers are able to ac- cess information on Wikimedia often thought to be the most thorough online encyclopedia without having to worry about data charges. The initiative is part of the Wikimedia Foun- dations strategy of reaching billions of people around the world whose primary access to the internet is via a mobile. Access to high quality tel- ecommunications tools and uordubIe servIces pIuys u substantial role in developing societies, said Jon Fredrik Contd. P 28...(Telenor) Buddhist monks use the internet in an internet cafe in Yangon. S o e
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November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com 28 IT & TELECOM Myanmar Summary gave the people of Myanmar ac- cess to a wider range of online sources than ever before. This year the government took a big step towards deregu- lating the telecoms industry, which was formerly controlled by a state-owned monopoly that lacked the incentives and experLIse Lo oer wIdespreud mobile access. In June, it awarded operating licences to two foreign companies, whose entry to the market is expected to help modernise the countrys telecommunications infrastruc- Lure. New servIce oerIngs wIII likely include mobile data plans that will help millions get online Ior LIe hrsL LIme. These reforms represent tremendous progress, but Myanmars newfound internet freedoms are still untested. Its un open heId rIgIL now wIIcI way things will go, says Asia media expert Madeline Earp, who edited the Asia section of the Freedom House report. The laws that were used to imprison people are still on the books, and theres a lot of things that people are not going to feel comfortable discussing online or in print until this changes. Allegations of continued gov- ernment interference in online activities create further chilling eecLs. n LIe pusL yeur, LIe government has been accused of hacking news websites and the personal email accounts of From page 27...(Internet) journalists; throttling the inter- net to limit public access; cor- rupt practices in the telecoms industry; and fomenting ethnic tension with fake social media accounts. Such allegations arise from a long history of government abuse, though some are based on circumstantial evidence and remain unproven. Concerns about the gov- ernments potential role in IomenLIng eLInIc conIcL ure particularly serious. In a coun- try rife with long-simmering ethnic tensions, some are using the internet to spread racist propaganda and harass others. This not only causes problems in the short term, but also gives the government a handy excuse down the road to roll back its reforms. Fortunately, voices of moderation and tolerance have emerged to counteract some of LIe more InummuLory cIuIms that have appeared on the internet. Despite such setbacks, the momentum behind the recent reforms is undeniably strong and the potential for greater access to improve lives is overwhelmingly positive. For the sake of Myanmars long- repressed people, lets hope these changes stick. Will Greene is a writer and digital strategist whose blog, TigerMine Research, covers economic development in Southeast Asia today. Forbes From page 27...(Internet) Baksaas, president and CEO of Telenor Group. To Telenor, this partnership enables us to provide strong support to local communities by promoting the exchange and sharing of open knowIedge. OerIng WIkIpedIu Iree oI Lrum c cIurges uIso IeIps introduce internet to mobile users, oILen Ior LIe hrsL LIme, he added. Since an agreement was reached between Telenor and Wikimedia, special ver- sions of Wikipedia for mobile From page 27...(Telenor) phones have been launched in Thailand, Malaysia and Mon- tenegro. Additionally, Telenor aims to launch Wikipedia Zero in Pakistan, Bangladesh, India and Serbia in 2014. In June, Telenor was an- nounced as one of the success- ful international applicants for a telecommunications license in Myanmar, alongside Qatari group Ooredoo. Wikipedia is available in 287 countries, containing more than 29 million articles contrib- uted by a community of roughly 80,000 people. Telenor and Wikimedia have reached a deal where Telenor customers will have access to Wiki- media's content free of any internet charges when the telecoms company begins operating within Myanmar. R e u t e r s Myanmar Summary Lenovo Prots Leup us it Ixtends ShiIt to Smurtphones Paul Carsten C hina's Lenovo Group Ltd, the world's biggest per- sonal computer maker, suId neL prohL jumped over a third to a quarterly record as it extended its cruise into smartphones and data servers Lo oseL u gIobuI decIIne In PC sales. ReporLIng neL prohL rose a better-than-expected 36 percent in July-September, Lenovo said it will continue to chase acquisitions while min- ing growth in the market for cloud computing and back-end information storage that's lured companies from rival IBM to Internet retailer Amazon.com The ambitious company was among a range of suitors to approach BlackBerry before the troubled device maker took ILseII o LIe murkeL, uccordIng to sources familiar with the matter. Lenovo, with a 17.3 percent share of worldwide PC ship- ments according to research hrm DC, reporLed neL prohL oI $z1q.; mIIIIon Ior ILs hscuI second quarter, its highest for any quarter, extending its streak of more than three years oI doubIe-dIgIL quurLerIy prohL growth. TIe prohL compured wILI $16z million a year earlier, and with a $199.12 million consensus forecast on Thomson Reuters Starmine SmartEstimate. Lenovo has been aggressively pushing into smartphones and servers as it seeks alternative channels of income to the shrinking PC market, which contracted 7.6 percent in the quarter ended September, ac- cording to data from research hrm DC. "GIven ILs sLrong hnuncIuI position, Lenovo will continue to actively look for inorganic growth opportunities that would supplement its organic growth strategy and accelerate future expansion," Lenovo said in its earnings statement. The company also said it remuIns conhdenL LIe CIInese economy is recovering. Yang Yuanqing, Lenovo's chief executive, hasn't shied away from expressing his eager- ness to use a corporate server business as a way to bundle more PCs into packages it sells to customers. The company has been suc- cessfully navigating a course away from PC manufacturing for years. Revenue from mobile phone sales more than doubled In LIe hrsL IuII oI LIe hscuI yeur ending March 2014 compared with the same period in the previous year. Mobile phone sales accounted for 14 percent of total revenue oI $18.6 bIIIIon In LIe hrsL IuII oI LIe hscuI yeur ended SepLem- ber. For the year ending March 2010, that share of revenue was just 0.5 percent. Lenovo was the fourth-largest smartphone vendor worldwide with a 4.7 percent share of a market that shipped over a quarter of a billion smartphones in the quarter ended Septem- ber, according to IDC data. 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Carolynne Schloeder ~ ._.:_~:..._. Telenor . ....|._ e_e._... .:.. e_e....:.~_~:. .~. ~.~~.~. -e.~~:_.:..~ ~ .._.: ..:..q, ~~ ~ ..: q ~ .:. ._ _e. ._ . AUTOMOBILE 29 November 14-20, 2013 Myanmar Summary Myanmar Summary Nissans October China Auto Sales Up 128pc Kyaw Min J apanese auto giant Nissan Motor Co Ltd and its Chinese local joint-venture sold 114,700 automobiles in China in October, up 127.8 percent from a year earlier, the company said last week. That follows an 83 percent year-on-year jump in September and a 1 percent increase in August. The sharp rise in sales was partly due to the low base from last year. Last September, Japan nationalised disputed islands in the East China Sea, sparking anti-Japan sentiment in China that hit sales of Japanese brands hard in the following months. n LIe hrsL 1o monLIs oI LIIs yeur, NIssun soId 1,ooo,qoo vehicles, up 7.1 percent from a year earlier. Nissan makes vehicles in China in partnership with Dongfeng Automobile Group Co. Myanmar Summary Myanmar Business Today www.mmbiztoday.com .,. - ..:.~:~:...,. _~._e...: Nissan Motor Co Ltd . ,.- ~,~e~....,.~.. _e. ..: Dongfeng Automobile Group Co ~. .~:~~:.~ ~, ~ . _ ..: .~: ~:.~. ..q..| . ~~,~~ ..~:. .q:...q._~:.. .,.._ ~...~ ~. q:. .,. _.~~.:.._~:. ~.~. .,.._~.~~ ._.:_~:..._. .~ ~:.~ ..:.~:~:. .q: ..q. .:.. : , q:. . , . ~ .~~ . _. . _. ~ .~ ~ q:. . , . ~ .~~ .._~:. .q._. .,.._ .~ ~ :.~ ., . ~.,_e ~.q ~,~..eq ~,..:.. .~.~ _ ~, ~ . ,e ._.~_ .. :.. _e. . :. ._.. ~,~.~ .,.,~.q. ..::..:. _e...'._.. ~..|. .:.~ .,.~ ~,._.:.- .q:.~:. ~...q._. Import Permit Holders See Iinunciul Rewurd in Porchusing omestic Aotos Htet Aung H olders of new for old import permits in Yan- gons automobile mar- ket are commonly buying older cars within Myanmar rather than importing from abroad due to the domestic models being cheaper, according to Yangon auto market sources. In 2011, the government introduced a New for Old programme aimed at improving the quality of cars on the coun- trys streets, where car owners could exchange their older models of cars for newer, more IueI em cIenL und cIeuner ones. As part of this campaign, car owners were given an import permit or pink slip of the value of their car, which they could exchange to import newer models of cars. The price of the permit can be as high as K11.8 million ($12,160) and with some do- mestic models, most notably the Toyota Probox sometimes available for K1.15 million ($11,850), customers are in- creasingly purchasing the cars that are already in the country rather than importing them from abroad, according to U Min Oo, head of the Automobile DeuIIng AssocIuLIon Om ce. Myanmars car market has seen huge progress since the programme began in 2011 and is cited as one of the industries that are expected to grow hugely amid the countrys cur- rent rapid wave of reforms. International car giants including Ford, KIA, Hyundai and Chevrolet have begun their operations within the country in recent years. A staff opens the boot of a car at a showroom in Yangon. S o e
Z e y a T u n / R e u t e r s BMW Prots Held Buck By Investment in New Models Long-term future more important than quick proft: CFO Andreas Cremer BMW CEU Norbert Reithofer (2nd R) and BMW board member Peter Schwarzenbauer (I) stand on stage with the new BMW i3 aII-eIectric car at an unveiIing event for the vehicIe in New York. The i3 is the worId's rst premium eIectric vehicIe designed from the ground up to be powered by an electric drive system, according to BMW. M ik e
S e g a r / R e u t e r s B MW, the worlds biggest luxury carmaker, said investment in technology and new models such as the i3 electric car would hold back fourth-quarter earnings, after it reported a bigger than expected drop In LIIrd-quurLer prohL. The German group, which is spending heavily in a bid to stay ahead of rivals Mercedes and Audi, also said on Tuesday quurLerIy prohLs were weIgIed down by discounts to lure cash- strapped European buyers and warned demand for cars in the region might not rebound until the second half of next year. European car sales slumped to their lowest six-months total In zo yeurs In LIe hrsL IuII oI 2013 amid record unemploy- ment and government austerity measures, though there have been signs recently that demand is at least stabilising. Premium carmakers have fared better than mid-market rivals, particularly thanks to strong demand from China, and BMW defended its investment in launching 25 new models this year and next, including the all-electric i3 city-car that will hit showrooms this month. Its our goal to ensure the competitiveness of the group over LIe Iong Lerm, suId hnunce chief Friedrich Eichiner. Thats more relevant than short-term prohL. 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November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com CLASSIFIEDS 30 SOCIAL SCENES 31 November 14-20, 2013 Celebrities Tan Tar Win (2 nd L) and Swe Zin Htike (3 rd L) at the event. Phyu Tit Lwin Myanmar Business Today www.mmbiztoday.com Yangon Region Chief Minister U Myint Swe gives a speech during the opening ceremony of China industry expo-Myanmar in Yan- gon. U Aung/Xinhua Wyne Wyne Pyae signs a document. Phyu Tut Lwin Shalini Bahuguna (L), deputy rep- resentative of UNICEF Myanmar and Zaw Myo Hlaing, country di- rector for Unilever Myanmar Ltd, at a signing ceremony last month. UNICEF and Unilever Myanmar have partnered to run a 'Creating Hygienic Environment in Schools for Children project in Myanmar. Unilever Yangon Region Chief Minister U Myint Swe (C) attends the opening ceremony of China industry expo-Myanmar in Yangon. U Aung/Xinhua An exhibitor arranges necklaces during the China industry expo-Myanmar in Yan- gon. U Aung/Xinhua Motorcycles are seen during the China industry expo-Myanmar in Yangon. U Aung/Xinhua A visitor views construction tools during the China industry expo-Myanmar in Yangon. U Aung/Xinhua China Industry Expo in Yangon Ooredoo and Yangon Youth Forum Sponsorship Agreement Signing Ceremony @ Park Royal Hotel Yangon Youth Forum representatives with Ooredoo Myan- mar CEO, Ross Cormack. Phyu Tit Lwin Wyne Wyne Pyae with Yangon Youth Forum representa- tives. Phyu Tit Lwin Representatives from Ooredoo and Yangon Youth Forum pose for a photo. Phyu Tit Lwin Ross Cormack speaks on stage. Phyu Tit Lwin Ross Cormack signs a document. Phyu Tit Lwin Representatives from Ooredoo and Yangon Youth Forum on stage at the event. Phyu Tut Lwin Creating Hygienic Environments in Schools for Children event between UNICEF and Unilever Voice of Women, Second Women Forum @ Inya Lake Hotel Swe Zin Htike speaks at the event. Phyu Tit Lwin November 14-20, 2013 Myanmar Business Today www.mmbiztoday.com 32 ENTERTAINMENT A Guide to Yangons Museums I t is a commonly heard complaint from visitors that there is not much to do in Yangon. After visiting the Shwedagon Pagoda, a few other religious sites around the city and some day trips to the citys outskirts, people often hnd LIemseIves venLurIng Lo other parts of the country very quickly. However, as a tourist destination, Yangon has an underbelly of activities that very few people know about. Of those, there are a fair few museums that exhibit the rich heritage in the country, as well as a few oddities. Nati onal Museum Housed in an ugly, Soviet- style building on Pyay road, the National Museum exhibits six oors oI dIspIuys ceIebruLIng LIe Oliver Slow countrys history, from tradi- tional art to clothing, to natural IIsLory. OI course, some oors are much more interesting than others and one particular IIgIIIgIL Is LIe hrsL oor, wIIcI houses exhibitions including the evolution of the Myanmar Iunguuge; u room hIIed wILI reIIcs Irom LIe counLry`s hnuI kings Mindon and Thibaw as well as the impressive Lions Throne. Sounding, and looking, very much like something out of The Game of Thrones, the Lions Throne is the only surviving throne [of eight] from King Thibaws rule. Its an outra- geously intricate and over-the- top object but is quite an incred- ible specimen. Since this could only be used by the King at the time, it is said that anyone who LrIes Lo puss LIe |IrunkIy Imsy| rope and ascend the steps can still be arrested today. Dr ugs Er adi cati on Museum This museum has been fea- tured on these pages before and continues to be a quirky place that few know about. Built on the site of an old cemetery, the museum was built in the late 1990s as part of the previous governments campaign to show how seriously they were taking the drug problem in the country. Despite some oddities most notably the mechanical hand of death which protrudes from the ground and the regular signs declaring that drugs are a 'IoreIgn` Inuence - IL does oer some useful information about something that continues to be a huge issue in the country. Like most museums in the cILy, IL wouId Iowever benehL from some additional signage of some of the exhibits. Planetar i um The dome-shaped Planetari- um in Peoples Park (accessible from Ahlone road) was opened in 1987 as a gift from the Japa- nese government. Approaching the entrance, the shocked em- ployees give you the impression that it doesnt attract too many visitors and sitting in the plan- etarium entirely alone but still not allowed into the VIP section that became obvious. TIe GrIm LI ObservuLory LIIs is not, but the graphics them- selves are more impressive than I anticipated, apart from the odd moment when a few dino- saurs bounce along the screen. What is frustrating though is that the narrator speaks in such heavily-accented English that its impossible to make out a word he has said. Nearby is also a grounded Myanma Airways plane where youre able to look at the in- tricacies of a cockpit from the 1970s. Bogyoke Aung San Museum The museum celebrating Myanmars independence hero wus Aung Sun`s hnuI resIdence before his assassination in 1947. The colonial-era, two- storey building was built in 1921 and is where his daughter Aung San Suu Kyi grew up, it was also here that Suu Kyis brother Aung San Lin drowned in a swimming pool. The museum mostly focuses on the generals short adult life [he died aged 32] and includes memorabilia such as clothes, books, family photos and his car. For many years, the museum was opened only on Martyrs Day the anniversary of his assassination but has since been opened year-round. The back garden of Bogyoke Aung San Museum. F ile s The Yangon Planetarium on Ahlone Road. O liv e r