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MYANMARS FIRST BILINGUAL BUSINESS JOURNAL

mmbiztoday.com December 26, 2013-January 1, 2014, | Vol 1, Issue 47


Myanmar Summary
Contd. P 6...(L\)
I
n April, the European Union
permanently lifted all re-
maining economic sanctions
against Myanmar as a reward for
the ongoing reforms that have
been taking place in the country
since a quasi-civilian govern-
ment came to power in 2011. This
was followed by Myanmar being
readmitted into the Generalised
System of Preferences (GSP)
status, allowing Myanmars
IndusLrIes Lo benehL Irom duLy-
free access to EU markets on
their exports, while last month
saw EU High Representative
Ior oreIgn AuIrs und SecurILy
Policy Catherine Ashton visit
Myunmur IeudIng LIe hrsL EU-
Myanmar Taskforce.
The signs are clear. The EU is
pleased with the reforms that
continue to take place in a coun-
Lry LIuL wus, Ior hve decudes,
practically isolated from the in-
ternational community. Another
important step took place ear-
lier this year when Roland Kobia
wus unnounced us LIe EU`s hrsL
ever resident Ambassador in
Myanmar. He came to Myanmar
after having been previously EU
Ambassador to Azerbaijan and
having spent time in the Private
Om ce oI LIe EU CommIssIoner
for Energy as well as seven years
in EU delegations in Africa deal-
Oliver Slow
Ing wILI LrunsILIon und conIcL
countries.
The message we want to
send is that we support the
eorLs LIuL Iuve been mude
since March 2011 and we think
this is a historic opportunity for
the international community
to accompany the reforms and
oer IeIp wIen und wIere IL Is
needed, Kobia told Myanmar
Business Today in an exclusive
interview last week. At the
time, we saw that the reforms
seemed to be genuine and we
wanted to show that the EU
Is LIere Lo supporL LIe eorLs
being made by the new govern-
ment in its transition. Political
and economic transitions are
dIm cuIL exercIses, IeIp Is oILen
welcome, he said.
Speaking of the EUs overall
role within the country which
began in 1996 with funding pro-
jects aimed at development and
has seen more than $500 million
in total Kobia said that the aim
is to promote a number of values
within the country, including
democracy, human rights, rule
of law, gender equality, judiciary
independence and free market
principles. Fundamentally, the
EU wants to promote peace,
stability and security as the
foundations of the New House
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EU Here to Support Myanmars Transition: Ambassador
Bloc identifes key areas of engagement as education, rural development, government and capacity building, and peace, says Roland Kobia, EU Ambassador to Myanmar.
EU Ambassador to Myanmar Roland Kobia speaks during an exclusive interview with Myanmar Business Today.
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December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
2
LOCAL BIZ
Myanmar Summary
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, Daisuke Lon, Yasumasa Hisada
Art & Design
Zarni Min Naing (Circle)
DTP
May Su Hlaing
Translators
Shein Thu Aung, Phyu Maung
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Advertising Hotline - 09 7323 6758
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Email
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Special Publications - oslow99@gmail.com
Advertising - sales.mbtweekly@gmail.com
Designer - zarni.circle@gmail.com
Phone
Editor - 09 42110 8150
Deputy Editor - 09 3176 9529
Designer - 09 7310 5793
Publisher
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Tel: 951-850 0763,
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Distributor (Bangkok)
Subscription & Circulation
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Foreign Trade up 30 percent
Kyaw Min
M
yanmars foreign
trade posted
a rise of $3.65
billion, or 29.7 percent,
In LIe hrsL nIne monLIs
oI LIe currenL hscuI yeur
over the same period in
LIe IusL hscuI, uccordIng
to Ministry of Commerce
data.
The total trade volume
reached $15.92 billion
during April to December
In zo1-1q hscuI yeur, oI
which maritime trade ac-
counted for $13.28 billion
and border trade $2.64
billion.
Exports through sea
routes amounted to $5.59
billion while imports
recorded $7.7 billion, the
data shows.
Myanmars main export
items include rice, maize,
peas and beans, sesame,
rubber, marine products,
teak, hard wood, natural
gas, jade and garment
while import items
include dairy products,
palm oil, pharmaceutical
products, cement, ma-
chinery, electronic equip-
ment and plastics.
The government has
set a total trade target of
$25 billion, 80 percent of
which are expected from
overseas trade and the
rest from border trade.
The main exporting
destinations for Myanmar
in that period were China,
I ndia, Thailand, Malay-
sia, Vietnam, Singapore,
the UK, the US and the
Philippines.
Myanmar has recently
signed border trade
agreements with I ndia,
Thailand, China and
Bangladesh in a bid to
boost trade.
Govt Calls on Private Sectors to
Invest in Electricity
Phyu Thit Lwin
T
he Ministry of Elec-
tric Power has in-
vILed prIvuLe hrms
to produce electricity in
any part of the country
in a bid to tackle the
crippling power shortage
In LIe counLry, un omcIuI
statement said.
Any prIvuLe hrm LIuL
wants to build hydropow-
er projecLs, gus-hred und
couI-hred power pIunLs
are invited to submit ap-
plications to the Ministry
of Electric Power, the
release said.
This is the third time the
Ministry of Electric Power
has invited private sector
for electricity genera-
tion. Earlier in J une and
September, the ministry
invited the private sector
to invest in the key sector.
To date, 23 companies
have been granted per-
mission to generate elec-
tricity in 84 townships.
The ministry said inter-
ested investors have to
mention the details of the
proposed project includ-
ing the type of the power
plant and the location
where it will be set up.
The projects that will
meet the required stand-
ards of environmental
and social assessments
will be allowed, it added.
Myanmar currently
produces overall 3,300
megawatts of electricity.
However, production hits
a snag during summer
as 70 percent of the
production comes from
hydropower.
Companies from
I ndonesia, J apan and
South Korea have already
shown interest in invest-
Ing In couI-hred und
gus-hred power pIunLs In
Myanmar.
Myanmar Summary
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December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
JFE Forms Steel JV with Construction Ministry
10,000-tonne steel bridge fabrication plant to be built in Yangon
J
apanese steel giant J FE
Engineering Corp has
established a joint venture
company with the Ministry of
Construction in a bid to tap
Myanmars booming infrastruc-
ture construction market, the
company said.
The new company, J &M Steel
Solutions Co Ltd, has started
the construction of a 16-acre
new plant in Yangon, J FE said
in a statement.
J &M plans to complete the
construction of the steel struc-
ture fabrication plant, with
an annual capacity of 10,000
tonnes in Thaketa township,
Yangon, by April 2014, to start
its business related to steel
bridge design, fabrication and
construction, the company said.
I n addition to steel bridges, the
plant will be capable of making
harbour and coastal structures
and container cranes, J FE said.
The company said it will intro-
duce its high quality fabrication
technologies to the plant.
The joint venture company
will gradually expand the scope
of its business to general
transportation and logistics in-
frastructure development, the
Tokyo-based company said.
Several international con-
struction companies have been
wooing Myanmar to make
headway into the Southeast
Asian nations lucrative con-
struction market as it emerges
from decades-long isolation
and military dictatorship, which
left the country direly requiring
construction of transportation
infrastructure, such as roads
and railways, as well as logistics
infrastructure, including port
terminals.
With J &M receiving orders for
projects within Myanmar, the
Sherpa Hossainy
A man walks past a logo of JFE Holdings Inc outside its headquarters in Tokyo.
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ministry of construction aims
to increase the ratio of domesti-
cally fabricated steel structures
from its current level of about
10 percent.
J FE said it will leverage the
joint venture company not only
to receive direct project orders,
but also as a production base
for the expansion of its over-
seas steel structure business
in Southeast Asia, Middle East
and Africa.
TIe compuny wIII oer ILs
engineering expertise to the en-
vIronmenLuI und energy heIds,
in addition to the countrys
transportation and logistics
infrastructure.
The establishment of the joint
venture was agreed to between
J FE Engineering and the Public
Works department under the
ministry in February. Proce-
dures for the establishment
have since been carried out, and
a business licence was granted
in November.
The share capital of the J V
company is 1.2 billion ($11.68
million), where J FE Engineer-
ing Corp holds 60 percent stake
while the Public Works depart-
ment holds the rest.
The company will start with
80-90 employees (about 70
workers) and will increase its
human resources up to 210
empIoyees (o sLu und 18o
workers) by April 2014.
J FE Engineering opened its
Yangon Branch in 1995 which
provides technical support to
national companies regard-
ing the construction of large
bridges. I t has been accepting
over 200 welding trainees at its
Tsu Works since 2002.
I t also started an internship
training program for students
of the Yangon Technological
University this year to train fu-
ture infrastructure construction
professionals.
J FE Holdings, the parent
company of J FE Engineering,
was formed in 2002 by the
merger of NKK and Kawasaki
Steel Corp. At the time, NKK
Corp was J apans second
largest steelmaker and Kawa-
saki Steel was the third largest
steelmaker.
J FE Holdings main busi-
ness is steel production. I t also
engages in engineering, ship
building and real estate rede-
velopment. J FE Holdings is the
hILI IurgesL sLeeI muker In LIe
world with revenue in excess of
$30 billion. J FE Holdings has
several subsidiaries including
J FE Engineering, J FE Steel and
J FE Shoji.
Myanmar Summary
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LOCAL BIZ
5
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
Myanmar Summary
US Slaps Sanctions on Myanmar Firms over
N Korea Arms Trade
Htet Aung
T
he US government
on Tuesday last
week imposed
sanctions on three com-
panies and one person
in Myanmar in its latest
eorL Lo cIoke o uIIeged
arms trade between the
Southeast Asian nation
and North Korea.
The Department of
Treasury blacklisted Asia
Metal Company Ltd, Soe
Min Htike Co Ltd, Excel-
lence Mineral Manufac-
turing Co Ltd as well as
Lt Colonel Kyaw Nyunt
Oo, u mIIILury sLu omcer
working with Myanmars
Directorate of Defense I n-
dustries (DDI ), a military
entity on Washingtons
sanctions blacklist since
J uly 2012.
The move entails sanc-
tions that bar American
citizens from doing busi-
ness with those targeted
and freeze all of their as-
sets under US jurisdiction.
These actions continue
LIe Treusury`s eorLs Lo
target those linked to DDI ,
which has been involved
in purchasing military
equipment and related
material from North Ko-
rea, the Treasury said in
a statement.
The Treasury said the
move does not generally
target the Myanmar gov-
ernment, as it has agreed
to follow through a UN
Security Council resolu-
tion banning the purchase
of military goods from
NorLI Koreu. US omcIuIs
say Myanmar has cur-
tailed the trade, but not
ended it.
The revenues from
these continuing military
sales directly support
North Koreas illicit activi-
ties, said Treasury Under
Secretary for Terrorism
and Financial I ntelligence
David Cohen.
We will continue to
target this activity in
Burma, and the region, as
we work with our inter-
national partners to shut
down North Koreas dan-
gerous and destabilising
weapons proliferation.
Soe Min Htike was a
procurement agent for the
DDI , the Treasury said. I t
and Excellence Mineral
worked with North Ko-
reun omcIuIs Lo ImporL
material for weapons
programs.
Asia Metal constructed
buildings and supplied
construction materials on
a DDI factory compound
where the Treasury said
about 30 North Koreans
were working.
The department added
Lt General Thein Htay,
the chief of DDI , to its
blacklist in J uly for his
involvement in arms deal-
ing with Pyongyang.
The military coopera-
tion with North Korea was
forged during Myanmars
international isolation.
The State Department
has said that in late 2008,
wIen Myunmur omcers
visited Pyongyang, they
signed a memorandum
of understanding with
North Korea on assistance
to build medium range,
liquid-fuelled ballistic
missiles.
Washington has eased
sanctions on Myanmar
and sent back an ambas-
sador in response to the
reforms undertaken in
the Asian nation in the
past few years.
The US government imposed fresh sanctions on three companies and one person in Myanmar in its latest effort to choke off alleged arms
trade between the Southeast Asian nation and North Korea.
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December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
From page 1...(L\)
of Myanmar that is being built.
During the EU-Myanmar
Taskforce, which took place in
Yangon and Nay Pyi Taw on
November 14 and 15, the EU
unnounced LIuL IL Iud IdenLIhed
four priorities for its develop-
ment aid to Myanmar for the
next years: education, rural
development, governance and
capacity building, and peace.
The EU also used the event to
sign agreements with the Myan-
mar government on Small and
Medium Enterprises (SMEs),
mining and tourism, as well
as an EU-Myanmar Business
Council and a European Cham-
ber of Commerce in Myanmar.
How the international busi-
ness community views Myanmar
as a place to invest is important
as the country continues its
reforms, Kobia said.
Companies from Europe see
Myanmar as this big new terri-
tory where there are great busi-
ness opportunities, so they come
here with a great desire to invest.
Now, when people come here,
LIey reuIIse LIuL LIIs Is u dIerenL
environment compared to Eu-
rope. So LIey sLurL reecLIng und
begin to see various problems
that even the government itself
recognises, he said, referring to
issues such as high land prices,
access to electricity, lack of hu-
man resources, the protection of
investments and other problems
LIuL ure uecLIng IoreIgn busI-
nesses interested in beginning
operations in Myanmar.
Im not a businessman, but
I know theres one thing that
businesspeople dont like, and
that is uncertainty. You need to
trust where you put your money,
and you need to ensure that you
will put the money in a basket
that is stable, otherwise you fear
you can lose that.
One key area for Myanmars
development is the Small and
Medium Enterprise (SME)
market, which makes up for an
estimated 90 percent of all com-
panies in the country. During the
Task Force, the SMART Myan-
mar (SMEs for Environmental,
Accountability, Responsibility
and Transparency) programme
was launched, a $2-million pro-
ject aimed at helping Myanmar
SMEs to develop.
In any country of the world,
SMEs are the backbone of the
economy. We want to help [Myan-
mar] constitute a strong network
of SMEs, therefore constituting
a middle class, which in turn will
help the country out of poverty.
He added that the way to help
SMEs is to set up a legal frame-
work Lo IeIp LIem ourIsI, gIvIng
people an incentive to develop a
sense of entrepreneurship.
Im not an expert in what
happened before, but a Socialist
economy isnt the sort of envi-
ronment where entrepreneur-
ship is encouraged. So one thing
is the legal framework to make it
easier for people to start a com-
pany, you also need to provide
know-how, transfers of technol-
ogy and technical assistance. All
these things the EU and other
donors, because were not the
only ones doing this can do
to help create a good business
environment.
Another EU-led programme
has seen 10 million ($13.5 mil-
lion) pledged to a programme
that will train 4,000 Myanmar
poIIce omcers In communILy po-
licing and crowd management,
another sign, Kobia says, that
the EU is serious about its
engagement with the country to
LIe benehL oI LIe popuIuLIon.
In countries in transition,
you need to show the population
that politicians are not just talk-
ing about changes. People want
Lo see reuI concreLe benehLs Lo
the country they want to feed
their children better, they want
to send them to better schools,
they want less corruption and
harassment and they want to
see a police force that is there to
help them.
Critics of the programme
have claimed that providing
Myanmar with riot gear violates
a longstanding EU arms em-
bargo, but in an earlier press
conference, Kobia countered,
the equipment the EU will
be providing to the police is
only purely defensive, nothing
LIuL cun be used oensIveIy.
Shortly following this interview,
riots began at a football match
in Yangon, when the Myanmar
national team was knocked out
of the Southeast Asian Games
football competition after los-
ing to Indonesia. Following the
game, supporters began tearing
up seuLs, seLLIng hre Lo pubIIc
property and hurling rocks at
police. The polices response has
come under some criticism, with
omcers hrsL sLundIng by, und
then later acting in a provocative
manner there are reports of
some poIIce omcers LIrowIng
stones back at the rioters. In
other incidents, most notably
the wave of anti-Muslim attacks
that have taken place in parts
of the country in the past year,
police have been criticised for
standing aside as mobs attacked
homes and razed entire villages.
Kobia says that these sorts of in-
cidents show the need for proper
training of Myanmars police
force, but it is work in progress
and will take time to change
mentalities, he said.
The EU and other govern-
ments have been criticised in the
past for rewarding the Myanmar
government before genuine de-
mocracy has reached the coun-
trys citizens. Political prisoners
still languish in jails earlier
this year, Thein Sein promised
that all would be released by
the end of the year, although 41
still remain incarcerated and
ethnic groups are still reporting
large-scale abuses, and while
Kobia admits that problems
remain, overall the country is
making progress in this area.
At the beginning, we believed
in this country and we believe in
the people; it has so far proven
the right thing to do. But we re-
main cautious and demanding
the lifting of sanctions must
come with progress, and the GSP
is linked to certain benchmarks,
with regards to democratisation,
human rights and labour laws.
So the EU remains vigilant and
attentive.
One area the EU continues to
look very closely at is Rakhine
state, most notably the plight of
the Rohingya people, a Muslim
minority group of which thou-
sands have been displaced by
violence in the region. Denied
citizenship by the government
who see them as illegal Bengali
immigrants from neighbouring
Bangladesh thousands of
Rohingya are languishing in
desolate internally displaced
person (IDP) camps, unable to
leave or to work.
With few options available,
many women in the camps are
turning to prostitution in order
to provide for their families
and with men unable to work,
domestic violence is reportedly
on the rise. It is an issue, Kobia
says, that the government and
all political and religious leaders
must take seriously and deal
with.
The EU can only guide the
government in addressing the
issue, Kobia says, and this can be
done by encouraging them to be
aware of the dangerous spillover
of this issue and to consider how
they are viewed internationally.
It is also a question of reputa-
tion. They must show that they
are really serious about chang-
ing the country. A country that
will have the chairmanship of
ASEAN, lets not forget that
there are Muslim countries
in ASEAN. They must ensure
that they are really committed
to dealing with a real problem
that is not only a concern at a
human rights level, but can also
derail part of the transition. It
can also have an impact on the
business environment it could
deLer InvesLors, IL muy scure o
investment.
While some international
observers criticise Myanmar for
inaction, Kobia says that he feels
that this is an issue that the gov-
ernment is at least looking at.
What I can see is there have
been some attempts [to deal
with it]. Thein Sein has been
there, hes met leaders from
both [Muslim and Buddhist]
sides and some Buddhist lead-
ers have been arrested for their
role in the violence. He made a
political statement calling for
peace, so this is all very good.
But we remain concerned,
as it was expressed by the EU
and many others in the last
UNGA resolution. The EU, the
member states of the EU, the
international community are
all concerned about this issue
and I believe that it is not in the
interest of Myanmar to let this
deteriorate further.
From page 1...(L\)
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_~:..._.
Im not a businessman, but I know theres one
thing that businesspeople dont like, and that is
uncertainty. You need to trust where you put your
money, and you need to ensure that you will put
the money in a basket that is stable, otherwise you
fear you can lose that.
EU Ambassador to Myanmar presents his credentials to President U Thein Sein.
E
E
A
S
7
December 26, 2013-January 1, 2014
LOCAL BIZ
Myanmar Business Today
mmbiztoday.com
Myanmar Summary
Yoma Forms JV with Sumitomo to Distribute
Hino Trucks in Myanmar
Kyaw Min
S
ingapore-listed Yoma
Strategic Holdings
has entered into a
proposed joint venture
with J apans leading trad-
ing house Sumitomo Corp
to distribute and service
Hino brand trucks and
buses in Myanmar, Yoma
said.
The proposed joint
venture, subject to the
approval of relevant
authorities, is expected
to be 60 percent owned
by Sumitomo Corp, 20
percent by Elite Matrix, a
wholly-owned subsidiary
of Yoma Strategic, and 20
percent by First Myanmar
I nvestment, a subsidiary
of Serge Pun & Associates
(Myanmar) (SPA).
Yoma Strategic said
its involvement in this
joint venture will serve
to further broaden the
companys burgeoning
automotive interests in
Myanmar.
This collaboration with
Sumitomo Corp is but the
latest in a long partner-
ship history between
Sumitomo Corp and the
SPA group of companies,
Yomu, wIIcI Ius u sIgnIh-
cant range of operations
in Myanmar, said.
Hino Motors, a Toyota
Motor Corp company, is
the largest manufacturer
of heavy- and medium-
duty trucks in J apan, with
sizeable market shares in
Southeast Asia and Aus-
tralia. Worldwide sales
of Hino-brand products
amount to 130,000 vehi-
cles annually. I n J apan,
Hino is widely preferred
for heavy, medium and
increasingly, light duty
trucks.
Andrew Rickards, Yoma
Strategics chief executive,
suId Yomu Is conhdenL In
the prospects of its part-
nership with Sumitomo
Corp to distribute and
service Hino brand trucks
and buses in Myanmar.
We have seen demand
for robust trucks with
good load capacity grow in
tandem with the economy
and with the continued
improvements to infra-
structure, we expect this
momentum to sustain,
Rickards said.
Rickards said demand
for long-distance coach
services is also likely to
increase, particularly for
travel between major
cities, as urbanisation
continues and tourism
ourIsIes IurLIer.
Many major vehicle
manufacturers are now
eyeing the Myanmar
market at the back of the
vehicle demand growth
spurt. We believe that this
is a right step for us in
our eorLs Lo sLrengLIen
our automotive portfolio,
in line with our longer
term plans to become a
sIgnIhcunL pIuyer In LIe
automotive industry in
Myanmar, Rickards
added.
Yomas business in-
terests range from real
estate and agriculture to
automotive and luxury
tourism in Myanmar and
China. Together with its
partner, the SPA Group,
the group said its taking
a conglomerate approach
Lo buIId u dIversIhed
portfolio of businesses in
Myanmar.
Listed in Tokyo, Osaka,
Nagoya and Fukuoka
stock exchanges, Su-
mitomo engages in a wide
range of businesses that
fall in industries includ-
ing media, resources and
transportation systems.
I ncorporated in 1919,
it has an established
presence in 116 locations
including 65 overseas and
24 in J apan.
A Hino 300 series truck.
W
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C
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._ YomaStrategic Holdings
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(Myanmar) - ..,..~..
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Investment . ..,.qee:
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q, Yoma ~.,_e e_~_.
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December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
Myanmar Summary
Myanmar, Cambodia Ink
Visa Exemption Treaty
M
yanmar and Cambodia
have agreed on mu-
tual visa exemption for
holders of ordinary passports.
The agreement on the move
was signed by Deputy Foreign
Minister U Tin Oo Lwin and
Cambodian Ambassador to
Myanmar Sieng Burvuthin in
Nay Pyi Taw.
The signing was aimed at
strengthening existing relations
In uII heIds und sImpIIIyIng LIe
procedures of citizens travelling
between the two countries.
I n February 2011, Myan-
mar established air link with
Cambodia with its Myanmar
Airways international (MAI )
yIng beLween Yungon und
Siem Reap, an ancient city in
Cambodia.
TIe IgIL servIce wus exLended
to reach Phnom Penh, capital of
Cambodia, in November 2011.
The airlines extension to
Phnom Penh has created a
long-term cooperation between
Cambodia and Myanmar on
tourist, culture, trade and in-
vesLmenL, omcIuIs suId.
The direct air link between
Myanmar and Cambodia was
introduced after the 4
th
Ay-
eyarwady Chaophraya-Mekong
Economic Cooperation Strat-
egy (ACMECS) Summit and 5
th
CLMV Summit in November
2010 which was aimed at de-
veloping tourist industry in the
subregion.
The Philippines and Myanmar
also signed a visa-free agree-
ment during the state visit of
President U Thein Sein in the
Philippines this month, while in
October a visa exemption agree-
ment for ordinary passport
holders was signed by Vietnam
and Myanmar. Myanmar and
Laos signed a reciprocal 14-day
visa exemption for ordinary
passport holders in 2006.
I n October, the Thai cabinet
also approved a draft proposal
to waive entry visa requirement
for Thai and Myanmar citizens,
making short-term visits by air.
During a parliamentary ses-
sion this August, deputy minis-
ter Tin Oo Lwin said Myanmar
will try to sign visa exemptions
with other ASEAN countries in
LIe nexL hscuI yeur.
Myanmar signed an agree-
ment with Cambodia, I ndo-
nesia, and Philippines in J une
during the World Economic
Forum to develop a smart visa
system for the development of
tourism in the region.
Kyaw Min
Tourists ride an elephant past the ruins of Cambodias Bayon temple in Siem Reap.
E
r
ik

D
e

C
a
s
t
r
o
/
R
e
u
t
e
r
s
_.,.:.. ~..:..e:..~
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:...:.~~~ ......~~~
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- ~:~ .. ~ . ..:~ _ . ~
~:. . .q.q:~, _~._:, . ~ e~, _~.
.~ .. . _., .:. . q: ~..:
..e:..~.~ Sieng Burvuthin ~
~ .,_._.~:~ .~.~.q...
_~_.._e.._. e. -~:~..~.
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Myanmar Airways international
(MAI) . q,~,. ~..:..e:.-
.q..e:._._e...: SiemReap
. ..._~: .~ ~ , ~ ._... . .:.
_......_. ..._~:.~~,~
._... . ~, ..: . .:.~:. ~.. :. .e:.
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. ._... . ._ ~.. :. .e:..
_.,.:.~~_~:. .q..:...,.
e .~.. ~ , . e .q.. q .. ._. . . .
~_.:.~_~:. .qq _ . ...| ...:
q ~ . ~._.~.,~. q. ~ e, ~ .....
.._~:. ~...:.:.~ ._.:_~:.
.._.
... _ ~ . ._ .:~ Ayeyarwady
Chaophraya-Mekong Economic
Cooperation Strategy (ACMECS)
.~ . .. ... .. . |._~ . ._.:~
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. :.. . , ..:. e _e .~ .~~ .:..q,
q_ q e _ _.. . ~ ... _. ..,:~
_.,.:.. ~..:..e:...._~:.
~ ~ , ~ . ~ .~ . .:.~ .~ . ~
.~ . _ . ._ e. ._ . e. .~~ .
.. , .. , . e .. . . . . :..q:~
. _. . .q.. ~~ . e .. . . _., .:
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First Myanmar-Hosted
ASEAN FM Meeting Set for
January
T
Ie hrsL Myunmur-IosLed
foreign ministers meet-
ing of the Association
of Southeast Asian Nations
(ASEAN) has been set for J anu-
ary 17 next year in Myanmars
Bagan in Mandalay region.
At the ASEAN FM meeting,
Myanmar Foreign Minister
U Wunna Maung Lwin will
present the prioritised tasks to
be undertaken by the regional
group, un omcIuI oI LIe DepurL-
menL oI ASEAN AuIrs oI LIe
Foreign Ministry said.
The ASEAN FM meeting
will help promote tourism and
bring more foreign investment
into the country, U Aung Htoo,
director general of the depart-
ment, said.
I n 2011, ASEAN leaders at
their summit approved Myan-
mar to take the ASEAN chair
in 2014, which was taken over
by Myanmar from Brunei on
October 10 at the 23
rd
ASEAN
summit held in Bandar Seri
Begawan.
During Myanmars one-year
term of the ASEAN chairman-
ship, more than 240 regional
meetings are scheduled to be
held in Nay Pyi Taw, Yangon,
Mandalay and Bagan.
ASEAN adopted its Vi-
sion-2020 in 1997 and is striv-
Kyaw Min ing to establish the ASEAN
Community in 2015.
Myanmar became an ASEAN
member in 1997.
ASEAN comprises ten mem-
ber countries Brunei Darus-
salam, Cambodia, I ndonesia,
Laos, Malaysia, Myanmar, Phil-
ippines, Singapore, Thailand
and Vietnam.
Myanmar Summary
Myanmar Sees More Than
300,000 Visitors in
Seven Months
M
yanmar saw a total
of 318,543 tourists
visiting the country in
LIe hrsL seven monLIs oI zo1,
uccordIng Lo omcIuI sLuLIsLIcs.
Of the travellers, 107,750
came by air, data shows.
The number of tourist arrival
is expected to increase at the
end of this year as many foreign
visitors are visiting Myanmar to
attend the 27th Southeast Asian
Games.
Myanmar targets 2 million
tourist arrivals in 2013 and up
to 3 million in 2014.
I n 2012, the number of tourist
arrival reached 1.02 million, an
increase of 200,000 compared
wILI zo11`s hgure due Lo sweep-
ing reforms in Myanmar.
Authorities also granted visa-
Kyaw Min on-arrival for visitors from 48
countries in a bid to lure more
visitors.
Myanmar Summary
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LOCAL BIZ
9
December 26, 2013-January 1, 2014
Myanmar Summary
Contd. P 26...(SL Asia)
Myanmar Business Today
mmbiztoday.com
Southeast Asia Opium Production
Sours pc, Led by Myunmur
Poverty pushing Myanmar opium output higher
L
ed by a 13 percent
increase in Myan-
mar opium cultiva-
tion to 57,800 hectares
(from 51,000ha in 2012),
opium poppy cultivation
in Southeast Asias Gold-
en Triangle of Myanmar,
Laos and Thailand rose
for the seventh consecu-
tive year, according to a
UN Om ce on Drugs und
Crime (UNODC) report
released last week.
The UNODC report,
Southeast Asia Opium
Survey 2013 Lao PDR,
Myanmar, said despite
erudIcuLIon eorLs, IIgIer
yields combined with a
rise in cultivation saw
Myanmar opium produc-
tion increase 26 percent in
2013 to an estimated 870
tonnes the highest since
assessments by UNODC
and the Myanmar govern-
ment began in 2002.
While production of
opium poppy a key
ingredient in the produc-
tion of heroin and various
other illegal drugs ap-
peurs Lo Iuve IeveIIed o
in Laos and remains low
in Thailand, the survey
shows increased produc-
tion in Myanmar has
caused the entire regions
production levels to more
than double since 2005.
I n 2013, Lao PDR and
Myanmar produced 893
tonnes of opium 18
percent of global opium
production a 22 percent
increase from 2012, and
2.7 times more than in
2005 when they produced
326 tonnes.
A 15-year plan developed
by the Myanmar govern-
ment in 1991 helped
reduce production levels
for most of the 1990s and
early 2000s, but since
2006 production has
steadily increased.
TIese hgures muke
clear that we need to step
up eorLs Lo uddress LIe
root causes of cultivation
and promote alternatives
to poppy growing, said
J eremy Douglas, UNODC
regional representative,
Southeast Asia and the
PucIhc.
We need to act quickly.
The Golden Triangle is
the geographic centre
Shein Thu Aung
of the Greater Mekong
Sub-region, and plans are
well underway to expand
transport and infrastruc-
ture and lower trade bar-
riers and border controls
across the region. The
organised criminal net-
works LIuL benehL Irom
Southeast Asias illicit
drug trade are well posi-
tioned to take advantage
of regional integration,
Douglas said.
The resurgence in cul-
tivation and production
may be fuelled by a rise in
demand for opiates in lo-
cal and regional markets,
says UNODC. I n Myan-
mar and Lao PDR, the
use of heroin, opium and
synthetic drugs remains
high and was much
higher in poppy-growing
villages.
Myanmar is Southeast
Asias largest opium
poppy-growing country
and the worlds second
largest after Afghanistan.
Shan State remains the
centre of Myanmars opi-
um activities, accounting
for 92 percent of opium
poppy cultivation, with
the rest located mainly
in Kachin state. I n Lao
PDR, the UNODC survey
conhrmed opIum poppy
cultivation in the three
northern provinces of
Phongsali, Xiangkhoang
and Houaphan.
The increase raises
concerns among develop-
ment agencies and gov-
ernments that not enough
is being done to provide
alternative employment
options to poppy farm-
ers and improve liveli-
hoods in impoverished
Myanmar.
Myanmar is the poorest
in Southeast Asia accord-
ing to the World Bank,
and opium cultivation is
a major source of income
for many farming fami-
lies, says the UNODC.
UNODC said surveys
of farmers in Golden
Triangle poppy-growing
villages show that money
from poppy cultivation
is essential for villagers
threatened with food
insecurity and poverty.
Our survey shows
a strong link between
poverty and poppy
cultivation, said J ason
Eligh, UNODC Myanmar
Country Manager.
Opium farmers are
not bad people, they are
poor people. Money made
from poppy cultivation
is an essential part of
Contd. P 21...(SL Asia)
MasterCard Adds $25,000 to Train Women
Entrepreneurs in Rural Myanmar
MasterCard & Mercy Corps program sees an average 218pc increase in partici-
pant knowledge of key business and fnancial concepts
Kyaw Min
PoIicemen and viIIagers use sticks and grass cutters to destroy a poppy eId above the viIIage of Tar-Pu, in the mountains of Shan State.
D
a
m
ir

S
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e
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t
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r
s
A
merican payment
network giant
MasterCard said
women entrepreneurs
wIII benehL Irom u new
funding to support busi-
ness literacy initiatives in
rural Myanmar.
The additional $25,000
in funding from Master-
Card will go towards the
expansion of the busi-
ness literacy program
with Mercy Corps called
Business and Financial
Literacy for Success.
The program educates
small farmers and house-
holds on basic business
skills and money manage-
ment practices.
MasterCard said the
grant will allow Mercy
Corps to provide the
second phase of training,
which will include in-
depth and targeted busi-
ness advisory services,
mentoring and links to
hnuncIng Lo IeIp oo
women entrepreneurs in
the delta region start or
expand their businesses.
This partnership be-
tween MasterCard and
Mercy Corps has already
seen more than 1,200
farmers and entrepre-
neurs, the latter of whom
are mainly women, ben-
ehL Irom LIe hrsL pIuse
of the Mercy Corps train-
ing, Matthew Driver,
Southeast Asia president,
MasterCard, said.
Providing training in
fundamental business
skills such as book-
keeping and budgeting,
promotions and cus-
tomer service directly
benehLs LIe purLIcIpunLs
not only by helping them
improve their business
performance but also in
achieving their goal of
supporting their families
and communities, he said.
TIe hrsL pIuse oI LIe
program that launched
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Myanmar Summary
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December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Myanmar Summary
Japan, Myanmar Sign Investment Pact
Treaty to nurture business ties, improve protections: Ofcials
J
apan and Myanmar have
signed an investment
treaty to nurture closer
business ties as the once se-
cluded Southeast Asian country
opens its fast-growing economy
to more foreign businesses.
Prime Minister Shinzo Abe
and Myanmar President U
Thein Sein signed the invest-
ment treaty on the sidelines of a
three-day special summit meet-
ing in Tokyo between J apan and
the Association of Southeast
Asian Nations (ASEAN).
J apanese businesses have
been eager to invest in Myan-
mar and have stepped up their
activities here after Thein Seins
reformist government came to
power in 2011 after nearly 50
years of military rule.
J apans trade ministry said
the agreement is intended to
provide greater protections and
a stable legal environment for
investors.
Under the treaty, J apanese
businesses operating in Myan-
mar will be granted equal rights
to local companies and Myan-
mar companies doing business
in J apan will receive the same
treatment.
The treaty calls for J apanese
investors to receive the same
protections provided to other
foreign investors under inter-
national rules and prohibits the
imposition of export, technol-
ogy transfer or other require-
ments in exchange for such
investments. I t is also intended
to improve transparency, key
for a country struggling with
endemic corruption.
Kyaw Min
The J apanese government
hopes to promote the business
expansion of J apanese com-
panies in Myanmar, a market
closely watched for strong
growth prospects thanks to
progress in economic reform.
At a joint news confer-
ence after the signing, Prime
Minister Shinzo Abe said the
treaty demonstrates J apans
determination to support
murkeL-IIberuIIsuLIon eorLs by
Myanmar.
Myanmar President Thein
SeIn suId Ie wus conhdenL LIuL
the treaty would expand invest-
ment opportunities for J apan.
I LIe LreuLy Is ruLIhed by
both countries, J apan will have
concluded investment treaties
or economic partnership agree-
ments laying down investment
rules with all 10 ASEAN mem-
ber countries.
The J apan-Myanmar invest-
ment treaty includes a so-called
investor-state dispute settle-
ment system, one of the focal
points of the ongoing Trans-
PucIhc PurLnersIIp Iree Lrude
negotiations.
Attracting foreign investment
and lending is crucial for aiding
the expansion of Myanmars
resource-rich economy. My-
unmur Ius sIgnIhcunL growLI
potential but is burdened with
un InemcIenL Iurm secLor. L
also lacks a manufacturing base
after decades of foreign sanc-
tions and restrictive laws under
military rule.
J apan is Myanmars largest
aid donor. To help clear the
way for the investment treaty,
Tokyo agreed to forgive about
$5.32 billion in debt owed by
Myanmar and extended bridge
loans to help clear the rest.
Abe has promised to help
support Myanmars economic
and political reforms with
both public and private help,
including fresh loans for infra-
structure building and major
development assistance that
will support J apanese business
interests in the Southeast Asian
nation.
J apan had close ties with
Myanmar before the junta
took power in 1988 and Tokyo
suspended grants for major
projects. J apan did not impose
sanctions on Myanmar in 2003
Myanmar's President Thein Sein (L) and Japan's Prime Minister Shinzo Abe shake hands at the start of their talks at the prime
minister's ofciaI residence in Tokyo.
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when the military regime put
pro-democracy leader Aung San
Suu Kyi under house arrest, un-
like the US and other Western
countries, though it did scale
back most business activities
and cut government aid.
J apans investments in My-
anmar still lag behind those of
China and I ndia, though that is
fast changing. Trading compa-
nies Mitsubishi Corp, Marubeni
Corp and Sumitomo Corp are
leading a project to develop
the 2,400-hectare (5,900-acre)
Thilawa Special Economic
Zone, located near Yangon,
J apans biggest investment in
Myanmar so far.
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Under the treaty, Japanese
businesses operating in Myanmar will
be granted equal rights to local
companies and Myanmar companies
doing business in Japan will receive
the same treatment.
LOCAL BIZ
11
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Business Today
mmbiztoday.com
STADA Expands its Business Activities into Myanmar
Su Su
G
erman pharmaceutical
producer STADA Arz-
neimittel AGs products
are now available in Myanmar,
making the company one of the
hrsL wesLern pIurmuceuLIcuI
companies to take up activities
in the Southeast Asian country.
The company said its local
purLners ure now oerIng
STADA products, including
both generics and branded, on
the market via in-licensing.
TIe producL runge on oer
will be expanded gradually,
STADA said.
Myunmur hLs perIecLIy InLo
our strategy of continuous
internationalisation while fo-
cusing on high-growth emerg-
ing markets in the process,
HurLmuL ReLzIu, cIuIrmun oI
the executive board of STADA
Arzneimittel AG, said.
Now that the country has
opened up, the supply of
medicines in the market with a
population of 60 million shows
substantial pent-up demand,
particularly for high-quality,
low-cost medicines.
We intend to be present from
the beginning. The licensing
model and our experience in
Asia have provided us good op-
portunities in the future market
oI Myunmur, ReLzIu suId.
STADAs commitment is very
forward-looking, said Chris-
tian-Ludwig Weber-Lortsch,
ambassador of the Federal Re-
public of Germany to Myanmar.
Everyone InvoIved benehLs
from the Burmese market open-
ing up. German companies like
STADA can penetrate a growing
market with future prospects.
The population, on the other
hand, gains access to a high-
quality yet low-cost supply of
medicines.
The production of medicines
for Myanmar will commence
from the end of 2015 in a newly
built production facility in Yan-
gon hnunced by IocuI purLners,
STADA said.
To that end, Stada Myanmar
J oint Venture Co Ltd was
founded; the STADA Group
has no shareholding in this
company.
The licence agreement, how-
ever, gives STADA the option
of taking over the company at
a later date. Until then, the My-
anmar market will be supplied
with products from the Viet-
namese production facilities of
the STADA Group.
STADA Arzneimittel AG is a
publicly-listed company with
headquarters in Bad Vilbel,
Germany. The group is the
only independent generics pro-
ducer in Germany. Worldwide,
STADA Is one oI LIe hve Ieud-
ing companies in the generics
industry and is represented in
more than 30 countries with
approximately 50 subsidiaries.
n hnuncIuI yeur zo1z, STADA
achieved group sales of 1.83
billion, adjusted earnings before
interest, taxes, depreciation
and amortisation (EBI TDA) of
367.5 million and adjusted net
income of 147.9 million. As of
December 31, 2012, STADA em-
ployed 7,761people worldwide.
The logo of the pharmaceutical company Stada Arzneimittel AG is pictured at its headquarters in Bad Vilbel near Frankfurt.
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.:.~ .:~ . ....,._~: . Retzlaff
~ ._.:_~:.. ._ .
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
Myanmar Summary
Myanmar: Year in Review 2013
Michael Nesbitt
F
rom the announcement of
winners of the inaugural
international telecoms
tender to the awarding of lucra-
tive oil blocks, as well as the
ongoing challenge for peace in
the Kachin and Rakhine states,
2013 was not short of headlines
for this once-isolated nation.
A year after the passing of the
Foreign I nvestment Law, the
role of Chinese investors has
dImInIsIed wIIIe LIe ow oI
funds from the West and other
ASEAN members has increased.
An i mpr oved pi ctur e
Throughout 2013, the US
government eased sanctions,
which has increased inter-
esL Irom US hrms IookIng Lo
tap into the frontier market.
South Korea and J apan further
extended their reach to the
country and will play a vital role
in the evolution of the economy,
with investment commitments
across infrastructure, the de-
velopment of special economic
zones and the announcement,
in J une, by J apanese Prime
Minister Shinzo Abe to cancel
debt amounting to $1.74 billion.
IberuIIsuLIon oI LIe hnuncIuI
sector could hasten develop-
ment and further boost foreign
investment. The Central Bank
of Myanmar (CBM) gained
independence this year, while
steps have been taken to adopt
new exchange rate mechanisms,
liberalise the insurance market
and set up ATMs nationwide.
Another key development is
the governments commitment
to establish the Yangon Stock
Exchange (YSE). The exchange
is being set up with the over-
sight of Daiwa Securities Group,
the J apanese government and
Myanmar Economic Bank, and
is expected to open in 2015 in
line with the commencement of
the ASEAN Economic Commu-
nILy. AILIougI LIe hnunce sec-
tor is maturing at a rapid rate,
considering that the majority
of transactions were previously
handled in cash, many experts
believe it will be a challenge to
launch the YSE by 2015.
I n J une, U Htay Aung, the
minister of hotels and tourism,
unveiled the Tourism Master
Plan (TMP), which set out a
goal of boosting annual tourism
receipts from $534 million in
2012 to $10.8 billion by 2020.
I n a year that saw property and
hotel rates skyrocket, with aver-
age expenditure on accommo-
dation at $200-299 per night in
Yangon, onlookers will be keen
Lo see LIe eecL LIe proposed
plan will have on room rates
and availability.
As part of the TMP, the tender
for Hanthawaddy I nternational
Airport was awarded to a South
Korean consortium in August,
valued at $1.1 billion. Viewed
as a critical step to boost tour-
ism and trade with the Asian
Development Bank (ADB)
estimating arrivals to reach 5
million by 2020 the airport
will be situated 80 kilometres
(km) north of Yangon and have
the capacity to host 12 million
arrivals annually, with room to
eventually expand to 30 million.
Meanwhile, foreign direct
investment (FDI ) rose to $2.7
bIIIIon In hscuI yeur zo1zJ1
(ended March 2013), up from
$1.9 billion in 2011/ 12, accord-
ing to the World Bank. Oil and
gas revenues continue to drive
the economy, with GDP growth
of 6.5 percent for 2012/ 13.
I ncreased natural gas ex-
ports from Shwe and Zawtika
gus heIds, LIe openIng oI LIe
2,000km Myanmar-China gas
pipeline in October and the
unnouncemenL LIuL o osIore
blocks will come on-line in early
2014, means that the energy
sector will continue to play a
key role in driving projected
GDP growth for the 2013/ 14
hscuI yeur, wIIcI LIe ADB Ius
forecast at 6.8 percent.
While the retail and construc-
tion sectors expanded with
hotels, shopping malls and
apartment buildings being
erected throughout Yangon,
Mandalay and Nay Pyi Taw,
more can be expected from ag-
riculture, telecoms, mining and
manufacturing in 2014.
Prospects for economic
growth are improving as mod-
ernIsuLIon, mIcrohnunce und
new laws take shape. FDI in the
mining sector has lagged due
to red tape and transparency
issues. However, government
plans to implement the Extrac-
tive I ndustries Transparency
I nitiative (EI TI ), as well as a new
mining law due to be passed in
March 2014, which means that
foreign participation is set to
rise steadily.
The r oad ahead
Access to quality health and
education remains a major
challenge. Notwithstanding,
InvesLmenL Ius rIsen sIgnIh-
cantly in these sectors since the
appointment of President U
Thein Sein, though the major-
ity of aid to the population
70 percent of whom live in
rural areas is still provided
by non-governmental organi-
sations. Another issue is the
recenL jump In InuLIon, wIIcI
reached 7.33 percent in August
due to high prices for food, gas
and electricity, according to the
Central Statistical Organisation
for Myanmar.
Although the government has
received international recogni-
tion for taking measures to en-
hance transparency, the coun-
try still has a long road ahead in
rooting out corruption. Ranking
157 out of 177 countries in the
Transparency I nternationals
Corruption Perceptions I ndex
2013 an improvement on its
2012 position of 172 investor
conhdence wIII Improve IurLIer
with more commitment by the
authorities in this area.
Looking ahead, the govern-
ment and the CBM will need to
keep a watchful eye on various
indicators, and with upcoming
state elections nearing, 2014
promises to be a key year.
Michael Nesbitt is Editorial
Manager at Oxford Business
Group.
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Master Plan (TMP) ~.q.~ ~
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.,.:._~._.
While the retail and construction sectors
expanded with hotels, shopping malls
and apartment buildings being erected
throughout Yangon, Mandalay and
Nay Pyi Taw, more can be expected
from agriculture, telecoms, mining and manufac-
turing in 2014.
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REGIONAL BIZ
13
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Business Today
mmbiztoday.com
A man walks past a signboard of Mitsubishi UFJ bank at its branch in Tokyo.
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Jupun's MLIG ucqoires ,pc oI Thui
Bank of Ayudhya
Taiga Uranaka
M
itsubishi UFJ Finan-
cial Group (MUFG)
said on Wednesday
last week that it has acquired a
72 percent stake in Thailands
Bank of Ayudhya Pcl for 170.6
billion baht ($5.31 billion)
uILer concIudIng u Lender oer
recently.
MUFG, J apans largest lender
by usseLs, mude un oer beLween
November 7 and December 13
to buy up to 75 percent of Bank
of Ayudhya for as much as 560
billion yen ($5.44 billion).
The deal will mark the biggest
acquisition by a J apanese bank
in Southeast Asia.
MUFG is planning to merge
its existing Thai operations with
the domestic lender to comply
with Thailands single presence
policy on bank ownership. The
acquisition and merger plan had
surprised J apanese rivals, given
that MUFG already had substan-
tial operations with J apanese
businesses in the country.
MUFG has the biggest over-
seas operations among J apans
banks. I n 2008, it bought out
UnionBanCal Corp, the holding
company for California-based
UnionBank, and paid $9 billion
for a 20 percent stake in Mor-
gan Stanley.
I n 2010, it acquired a $6.4 bil-
IIon projecL hnuncIng Ioun book
from Royal Bank of Scotland.
Reuters
Kia Says to Produce
Record 300,000 Cars
in Slovakia in 2013
Robert Muller
S
outh Korean Kia Motors
will produce a record
300,000 cars at its plant
in Slovakia in 2013 as the fac-
tory ran at full capacity for the
hrsL LIme In seven yeurs, LIe
carmaker said on Wednesday
last week.
The plant in the northern part
of the country is one of the euro
zone member's biggest export-
ers. I t mostly produces versions
of the Ceed small family car,
the Kia Sportage SUV and Kia
Venga mini car designed for
European and Russian markets.
Slovakias automotive indus-
try which represents a big
driver for the central European
countrys economy is based
around assembly plants of Kia,
Germany's Volkswagen, and
French PSA Peugeot Citroen.
Kia, which launched its
plant in Zilina in 2006, said in
J anuary it planned to produce
290,000 cars in Slovakia in
2013, just shy of its better-than-
expected record 292,000 made
a year earlier.
Our production has risen
continually over the past seven
years, Eek-Hee Lee, president
and CEO of Kia Motors Slova-
kia, said in a statement. We
will continue with this success
in the next period.
So far this year, 22 percent of
output at the assembly plant
was exported to Russia, with
Britain as the next biggest for-
eign market at 13 percent.
I n J uly, Kias local company
chief Lee said the launch of
new models had helped the
carmaker weather weakening
sales in Europe that had hit
most other producers. Reuters
Myanmar Summary
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..:.~:~:...,._~._e...: Kia
Motors - ..-~~.e:..~,.
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Sportage SUV . Kia Venga
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.:. :.,- Volkswagen .
_. .. . - PSA Peugeot Citroen
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.q._.
Kia . ~~' ...~ ..:.~:
~:..~,~:. Zilina _ .~~_
.:..:q~._.. ~~, ...~
..:.~:~:.~...q..|. ~~~~
~ ~...q, ..:.._~:.
~,,~|q.~ Kia . ._.:_~:..._.
Mitsubishi UFJ Financial Group
(MUFG) ._ ... Bank of
Ayudhya Pcl -..,.qee:
q:..,.~:. .~. ~~.'
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. ._.:_~:..._.
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._ .~:. q~.,. .~:.
~, q~.,~~. Bank of Ayudhya
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q,~~~ _...,_.. ..-
~ . . . ~ ~. .~_.q. ~_.
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_e.._~:. .q._.
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
Asiun Locutions Overtuke Sydney in Globul
List oI Most Ixpensive Cities
Yasumasa Hisada
A
ustralian locations have
now all fallen out of
the global top 30 most
expensive locations in the world
for expatriates, the latest Cost
of Living survey by ECA Inter-
national revealed.
Sydney and Canberra, both
in the top 20 a year ago, now
rank 31
st
and 39th respectively.
Melbourne has fallen 22 places
to 45
th
position globally fol-
lowed by Adelaide (46
th
), Perth
(47
th
) and Brisbane (54
th
). Of
the Australian locations Darwin
has fallen the most places to
55th place down from last years
26
th
spot.
Despite actual prices of goods
in ECA Internationals shop-
ping basket for Australia rising
at a faster rate this year overall,
LIe sIgnIhcunL weukenIng oI LIe
dollar against most major cur-
rencies means that Australian
locations are becoming cheaper
again relative to many other lo-
cations around the world, said
Anna Michielsen, general man-
ager, Australia, New Zealand &
PucIhc Ior ECA nLernuLIonuI.
Asian locations including
Beijing (15), Shanghai (18),
Seoul (21) and Hong Kong (28)
are among those that now rank
higher up the list of most expen-
sive cities for expats.
To ensure that their employ-
ees spending power is not
compromised while on interna-
tional assignment multinational
companies will often include a
cost of living allowance in their
pay package. Living costs for
ussIgnees ure uecLed by Inu-
tion, availability of goods and
exchange rates, all of which can
Iuve u sIgnIhcunL ImpucL on us-
signee remuneration packages.
ECA carries out two Cost of
Living surveys per year, com-
paring a basket of like-for-like
consumer goods and services
commonly purchased by assign-
ees in 440 locations worldwide.
Port Moresby has fallen 12
places in the ranking to 25th
globally. Auckland, ranked
52nd, is the most expensive of
the New Zealand cities.
While Tokyo still tops the list
of the most expensive locations
in Asia for expatriates, glob-
ally it has fallen to 10th place
on the back of a weaker Yen a
sIgnIhcunL drop Irom IusL yeur,
when it was the most expensive
city in the world for expatriate
sLu. CompunIes LIuL need Lo
IocuLe sLu InLo Jupun cun now
do so for considerably less than
in recent years, despite the
Iong perIod oI deuLIon In LIe
country being reversed earlier
this year.
TIe dIerence In LIe cosL
of ECAs cost of living basket
between Tokyo and Sydney fell
from 31 percent to 12 percent
over 12 months.
After Japan, some of the big-
gest falls in living costs in Asia
have been seen in Indonesia
also partly as a result of a
weaker currency. While Jakarta
has only fallen three places in
the regional ranking to 27th,
globally it has dropped 45 spots
to 172nd place.
Beijing is now Asias second
most expensive location after
Tokyo, up from 5th position
last year. Globally, the Chinese
capital is the 15th most expen-
sive location for expatriates.
Shanghai previously in 25th
position is now in the 18th posi-
tion in the global results, and
4th in Asia.
Its important to remember
Prices of some sample items from ECA Internationals basket of goods and services commonly
purchased by expatriates, in AUD
Location Movie Quick Can of Dozen Beer at Bananas Fresh Coffee Petrol
ticket lunch soft drink eggs a bar (1kg) milk at bar (1L)
(50cl) (1L)
Sydney 18.36 31.02 2.65 5.08 8.28 4.41 2.24 4.33 1.66
Tokyo 20.21 16.46 1.75 5.87 10.73 6.11 2.9 5.07 1.88
Beijing 16.82 23.93 1.33 5.5 10.26 3.43 4.61 5.57 1.54
Hong Kong 11.6 20.06 1.34 7.17 10.16 1.78 3.94 5.22 2.47
Singapore 9.53 21.31 1.38 3.94 14.89 1.91 2.95 5.38 2.08
Rio deJ aneiro 11.68 25.05 1.2 3.33 5.03 1.78 1.56 2.95 1.51
Manhattan 15.58 29.37 1.85 4.71 9.07 2.24 2.87 4.66 1.26
Central London 21.14 30.53 1.57 6.42 9.41 1.53 1.65 4.62 2.39
Paris 15.7 34.84 1.68 6.18 13.3 3.06 1.95 6.19 2.4
Dubai 10.79 24.59 0.72 4.59 13.79 1.77 1.71 5.3 0.53
J akarta 5.69 17.15 1.1 3.01 8.05 1.94 2.23 3.32 1.08
Bangkok 6.96 17.16 0.75 3.05 8.37 2.08 1.75 4.26 1.47
that certain living costs, such
as accommodation rental, utili-
ties, car purchases and school
fees are not included in our
cost of living basket, continued
Michielsen.
Because these costs are usu-
ally addressed separately by
an expatriates employer, we
collect this data separately. But
if we were to include such costs,
Hong Kong and Tokyo would
be higher in the ranking, while
Beijing would be lower due to
lower housing costs.
e.~.| _..._~..- _..:.~.,
_e ~.:.,..q~ ~_..:...
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Myanmar Summary
.~:._~:. ECA International .
.,:~ . . .~:~ e ~ _., . ._
.,..q~.q:..~..~q .q
._.
Sydney . Canberra ~._
. , . ._ ~. . . ~ ~. : ., . .q ~
~_..:... .~,._. ~ ~
. . _. . ..|~ . _. . e. ~.| ~. ,~,
. ,, .,q:~ ~....q.,._.
Melbourne ._ e.~ ~.
., e.~.| ~. ,,
Adelaide ~ ~. ,', Perth ~
~. ,, . Brisbane ~
~. ,, . .,..q~_..:.
..: _..:..:q.~ ~.~..
.:.._~:. .q._.
_..._~.._ ~.q:.~~e_...
._ ~.,~~e....,..:..: e.
..~....~ ~.~~..,. _.,.,
..:._. ~_.:. ~.~.._~..,.
.:.. ..eq:~ _..._~..
..'.:~,e.~...~ _..._~..
- .,q:.:.~ ~.:~.~,.q ~_.:.
.,q:.:. ~ .. . .~ .:.:..
._~:. ECA International . ~_~.
~~_e.. Anna Michielsen ~
._.:_~:..._.
~:q. ..~ ~.:.,.
.q~ ~_. .:.. . ~. ~, q , e .
.: ~. ~, ....: ~. ~,
. .e:.~:. : ~. , ~_e.
_~_.. ~. .|_. .:.~.,_e .q ._.:.
., . .:.~~ ~ .q ~ ~_. .:.. .
_..:._e._~._~:. .q._.
ECA . ~.... .,..q~
..~.. .~ .~:~._.. ~.:
~.~,.q .,q:..|. ,,~ .q .:...
. ~ ~ , . ~, ..: . .:.~:.~.:.
~:._e ~e e . ._ ~.~ .:.~ . .
e_.._e.._~:. .q._.
Port Moresby ._ .,..q~
~_..:....:q.~ ~. , _
q.,_.. Auckland ._ ~. ,
_e.~: ,e.~.,- .,..q~
~_. .:.. ._. .:.~_e. q. ~_ .,._ .
~~._ ~:q~ .,..q~
~_. .:.. . . ~, ..,q:~. . ~_e.
q.~_.,._e...:._. ~.:..
.q:~q e,..._~.~,e.~..
. ._~: ~. ~~, . ~. .. ._ .
. .._ e. ~.| ~ ~ .,:~ ~
~:q_ .~e.,..q~~_..:.
. ..,q:~. . ~_ e. q. ~_ .,_. .
.,.._..~ ~. , ~ q.
._~:. .q._.
While Tokyo still tops the list of the most expensive locations in Asia for expatriates, globally it has fallen to 10th place on the
back of a weaker Yen a signicant drop from Iast year, when it was the most expensive city in the worId for expatriate staff.
R
e
u
t
e
r
s
Source : ECA International
REGIONAL BIZ
15
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Business Today
mmbiztoday.com
An investor looks at an electronic board showing stock information at a brokerage house in Shenyang, Liaoning province,
China.
R
e
u
t
e
r
s
Chinu's Iqoities Seen Overtuking
Indias in 2014
Clement Tan
C
hinese shares may be
poised to become an
unlikely star of Asian
emerging markets in 2014, out-
shining India, thanks to cheap
valuations and optimism about
reforms.
Investors have been under-
weight China for years.
China-focused equity funds
suw some neL Inows In Novem-
ber, when the ruling Communist
Party announced plans for far-
reaching economic and social
reforms, and analysts said once
the government starts following
through on those plans it would
LrIgger u ood oI money.
Foreigners have bought a net
$18.8 billion worth of Indian
shares this year, according to
the market regulators data.
OmcIuI sLuLIsLIcs ure noL pub-
lished for China, but data from
fund tracker EPFR shows a net
$. bIIIIon ouLows Ior LIe
year to December 11 for China-
focused equity funds.
At 9.3 times forward 12-month
earnings, the MSCI China is
trading at a chunky discount
to its 10-year median and at its
widest gap to the MSCI Asia ex-
Jupun sInce LIe zoo8 hnuncIuI
crisis.
And the Chinese market is
trading at a 40 percent discount
to MSCI India on a forward
price-to-earnings basis, ac-
cording to Thomson Reuters
I/B/E/S data.
In contrast, benchmark in-
dexes in India have hit record
highs and valuations are on par
with 10-year averages.
Besides looking expensive,
Indian shares could also be
vulnerable to shocks that could
come from the US Federal Re-
serve winding down its stimu-
lus, current account problems,
and a general election due by
May next year.
At the very least, investors
look unwilling to add more In-
dian risk and will look to make
fresh allocations next year
in other markets, with China
hrmIy on LIeIr rudur.
Overall, we believe Chinese
equities are just too cheap to be
ignored by investors in 2014,
said Desmond Tjiang, Greater
China and Hong Kong equities
portfolio manager at Pinebridge
Investments in Hong Kong.
Despite reforms and the
broad economic slowdown,
there are still a lot of industries
such as mass consumption,
e-commerce and environment-
related sectors that should
continue to grow exponentially
in the coming years.
Beijing last month unveiled
a bold reform plan, including
pledging to free up markets, in
a bid to put the worlds second-
largest economy on a more
stable footing.
The plan sparked a rally in Chi-
nese sLocks LIuL suw LIe osIore
Chinese market in Hong Kong
gain more than 10 percent in four
sessIons, beIore IeveIIIng o.
Some brokers, such as CLSA,
said the rally lacked conviction
due to an absence of institu-
tional investors. But while some
may still be wary of a market
that has been in a funk since
2007, there are signs things
could be turning around.
In a November 21 report,
Goldman Sachs said funds fo-
cused on global emerging mar-
kets and Asia were underweight
China by 290 and 582 basis
points respectively, suggesting
a return to equal weighting
alone would trigger a powerful
rally.
India may have more upside
potential in the short term
because markets may rally into
the elections due in May, but
China represents better value in
the middle term, said Angelo
Corbetta, Pioneer Investments
London-based head of Asian
equities. Reuters
~~, ...~ ~:q-e_e.....
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- qee:~,e.~. _..:..:
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.~ q ~:~:q ~ , _.,. .|~ . . .. :.
.q.. ...q. _._.._.:...~.
~.~:. _....:.._e ~_.,
._~_:. _. ..,:~ ~, ~ . . q e e:
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....,.~~.:.._~:. .q._.
. .. . .:.~ ._.:_~:..~ ~q ~. .q
~.,_ e ~. .| ~. ~. .:. ~:.
.~ ..: q ~ . ._ . . ~~ .
.~.~..:. q.:.._~:. .q._.
._.:..:..:.~.,_e e...~
~..q~,..'.: ~. .e~
~. ._.~: ~ . eq e e:.:.~ ~e e
. ._~: . ...~ ~ . ._~ ._~. , .. . .
. ~.~~.~.:.~q .q._.
~,~. ~ ~q:.~.:q.~.
~.~ ~.~ .:.~ ~ _., . .q ..:
._. EPFR . ~.~ ~.~ .:.~q
~, ~ . - q e e:.:.. ~..q ~,
..'.: . .e~ ~.:.~
qq . ._~: . . q._ . ~, ~ . ~.,
_e _._. ._.: .. .q.~. ~. ._~:
qee:~,e..:.._. ~~.:.
._~.,~:.~ q.,._.~.e
.q .~.~,.~,..:..: ~.,
_ . .:.._ ~.,~:.~ q .,_ . .
qee:~,e..:..:._. ~~ ..~:
....~, e ..:q.,._~:. . q._ .
~ . e- q e e:.... , ..:.. : ~, e .
_. .:...: ._. US Federal Reserve
. .._~....:.~.~. .:.~:.
~q,..:..~. .~q _:.q.
_..,:.:.. .:._.. ...~
_...._ ~...q..~:~.~
._~: .~_._._e..:.._~:.
.q._.
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
16
Myanmar Summary
China Needs Western Help for
Nuclear Export Ambitions
China seen better at building reactors than making proft
David Stanway
C
hinas investment in Brit-
ains 16 billion Hinkley
PoInL projecL Is ILs hrsL
foray into Europes nuclear
power market and a marker
of its global ambitions, but its
hrms wIII depend on IoreIgn
purLners II LIey ure Lo IuIhI
them.
China General Nuclear Power
Group (CGN) and China Na-
tional Nuclear Corporation
(CNNC) plan to take a com-
bined 30-40 percent stake in a
consortium led by French utility
EDF to build French-designed
EPR reactors in southwest
England.
China has the worlds largest
nuclear building programme at
home and hopes to leverage this
into a nuclear export industry.
While China has already built
reactors for its ally Pakistan,
HInkIey PoInL Is ILs hrsL nucIeur
project in a developed country,
and Beijing hopes the UK cre-
dentials will help promote its
two nuclear giants on the global
stage.
But industry analysts say gaps
in the Chinese supply chain,
fears of political interference
and inexperience in the eco-
nomics of nuclear power mean
LIe hrms wIII sLruggIe Lo go IL
alone.
They are very ambitious, but
whether they will be welcomed
overseas is another question,
said Li Ning, a nuclear power
specialist and dean of the School
of Energy Research at Chinas
Xiamen University.
I n Britain, for example, po-
litical discussions behind closed
doors about Chinese nuclear in-
volvement concluded the public
would not accept Chinese com-
panies owning majority stakes
in new plants and that initial
participation should be capped
at 49 percent, a source familiar
with the discussions said.
Chinas massive domestic
nuclear new-build programme
is one of the few bright spots
in the global nuclear industry
following the 2011 Fukushima
disaster, which prompted sev-
eral countries including J apan,
They have no clue about interna-
tional business. They have abso-
lutely no clue how to make profit
in nuclear.
Germany, Switzerland, I taly
and Belgium to close or phase
out their nuclear programmes.
After a post-Fukushima
suspension lasting a year and
a half, Beijing restarted its
programme late in 2012 and
aims to bring capacity up from
12.57 gigawatts now to 58 GW
by the end of 2020. Nearly 30
GW of new capacity is under
construction in China, more
than 40 percent of the worlds
total new-build.
"Clueless on propt"
Chinas regulators have long
encouruged nucIeur hrms Lo
build an entire industrial chain
with global reach.
After Fukushima, history has
given China an opportunity to
overtake the worlds nuclear
energy and nuclear technology
powers, Zhang Guobao, Chi-
nu`s Iormer Lop energy omcIuI
and a tireless advocate of nu-
clear energy, told a September
meeting of nuclear scientists,
according to state media.
China plans to bid for projects
in Argentina and Turkey.
But its domestic experience
wont necessarily translate well
overseas, said Arnaud Lefevre,
head of French nuclear consul-
tancy Dynatom I nternational,
which has been involved in the
nuclear business in China.
All the business of nu-
clear power plants in China
is controlled by state-owned
enterprises which are set up
to produce power plants, not
prohLs, Ie suId.
They have no clue about in-
ternational business. They have
absolutely no clue how to make
prohL In nucIeur, Ie udded.
Li of Xiamen University said
LIe hrms wouId sLruggIe Lo hnd
any immediate economic ra-
tionale for their involvement in
Hinkley Point, but they would
look at it as a marketing tool.
L Is LIe hrsL muLure nucIeur
market for China to work in,
and it could help in other re-
gions, he said.
Fr ench, US par tner s
CNNC and CGN will both be
involved in Hinkley Point, but
getting the two sides to collabo-
ruLe Ius proved dImcuIL. RecenL
governmenL eorLs Lo geL LIem
to join forces on a single Chi-
nese reactor design have so far
been fruitless.
The government intention-
ally put them in competition for
markets, so obviously there will
be a certain amount of hostility
between the two sides, said Li,
adding that on international
markets this might put China at
a disadvantage.
CGN is the longtime partner
of EDF, which is helping it
build two Areva-designed EPR
reactors in southern China, and
specialists were surprised to see
CNNC pop up as a partner in
Hinkley Point.
CNNC has teamed up with US-
based Westinghouse, owned by
J apans Toshiba, which will see
LIe worId`s hrsL AP1ooo reuc-
tor model go into operation in
China next year.
Even if they succeed in win-
ning bids for new reactors,
CIInu`s hrms mIgIL sLruggIe Lo
secure supplies of nuclear fuel.
While CNNC has its own sup-
plies and processing capacity,
CGN will still have to collabo-
rate with the French.
Everybody sells nuclear
power plants with 20 years of
fuel included in the contract,
said Lefevre. CGN cannot do
this.
Li said all this meant that
China was unlikely to risk go-
ing it alone in the foreseeable
future.
You may vie for the leader-
ship of a consortium, but in
the end, to get it completed,
you need the supply chain of a
global consortium, he said.
Reuters
~,~.- .~:...| ~'
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Point ..~,.._ .q:...~..
e:....~:....~~~ .....
...._~:...~.q._e._.. ,.-
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. . , ..:.. ....| ._ ..~. .e:.
. . .~:.. . , .~:. . . . ..: q ~
.:.ee._.q._. China General
Nuclear Power Group (CGN) .
ChinaNational Nuclear Corporation
(CNNC) ..,. . ~. French
utility EDF ...:..: ~~:..
_~.~ ~.qee: ,~ q:..,..
,~ q:..,.~ ~ee.q, ..
:._. . ~ ., ~.,:~ .~: . .~
_.... .~..q..:.._ EPR
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..:~ q, ~~ ~ _e. ._~: . . q._ .
~, ~ . ~.,_e _._ ~ ._ ~. :
~_~ ... ..~. .e:.. . .~ ~_
..:~.~.~.q.,_.. .~..
..~. .e:.. . .~ . ~ , . . , .~_e.
.q:~q.:.q,._. ..:.:.
._. ~,~.._ .|~.~,~
..~..e:..:~..|.e.:.~ ~_
..:~._.._e.~: Hinkley Point
. . ~ , .._ e _e._. .. ~. . ~
,.- .......~..e:...~,.
._._e.._~:. .q._.
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..: . . :.~ , .- . .~. .e:.
..,._~..:.~ .._.~....q,
._. ..:.,.:.._....:._.
..~. .e:.. . .~ . .. q: .. .:
. .. . .:.- ._.:_~:..~ ~q ~, ~
.- .q:..~:...,.. .
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An environmental safety monitor carries out contamination checks in the charge hall inside EDF Energy's Hinkley Point B
nuclear power station in Bridgwater, southwest England.
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REGIONAL BIZ
17
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Business Today
mmbiztoday.com
A man makes a phone call while standing near a Reserve Bank of India RBI crest at the RBI headquarters in Mumbai, India.
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India Cbank Surprises by Keeping
Interest Rates on Hold
Suvashree Dey Choudhury
T
he Reserve Bank of I ndia
(RBI ) unexpectedly kept
the countrys policy inter-
est rate on hold on Wednesday
last week, despite calling cur-
renL InuLIon Loo IIgI, cILIng
the prospect of easing retail
prices and its concerns about
the weak domestic economy.
The RBI had been widely
expected to raise the repo rate,
after lifting the countrys main
lending rate by 25 basis points
each at its previous reviews
in September and October. I t
instead opted to keep the coun-
trys main lending rate at 7.75
percent.
Benchmark 10-year bond
yield dropped 12 basis points to
8.78 percent from levels before
the decision, while the NSE
share index gained more than
1 percent. The I ndian rupee
strengthened.
However, the central bank
warned it would remain vigilant
on InuLIon und LIuL IL wouId
be ready to act even in between
policy reviews should headline
or core InuLIon noL euse us
expected, albeit noting it would
do so in a calibrated manner.
The RBI added it would also
gauge the impact from any
decision by the US Federal
Reserve to start withdrawing
its monetary stimulus. The
US central bank concludes its
policy meeting later in the day.
The policy decision is a close
one. CurrenL InuLIon Is Loo
high, said the RBI in its policy
statement.
However, given the wide
bands of uncertainty surround-
Ing LIe sIorL Lerm puLI oI Inu-
tion from its high current levels,
and given the weak state of the
economy, the inadvisability of
overly reactive policy action, as
well as the long lags with which
monetary policy works, there is
merit in waiting for more data
to reduce uncertainty.
The most recent data showed
consumer prices posted their
biggest annual rise on record
in November 11.24 percent
wIIIe wIoIesuIe InuLIon IIL u
14-month high last month.
SurgIng InuLIon ure beIng
driven by higher vegetable pric-
es that hurt the countrys poor
the most, and are thus posing
another headache to the embat-
tled Congress party, which is
facing general elections due by
May, and was drubbed in recent
state polls.
Still, analysts have said the
surge in prices of vegetables
such as onions are largely im-
pacted by I ndias lack of reliable
ways to transport the produce
and by traders suspected of
hoarding supplies to raise
prices, limiting the impact of
monetary policy.
For businesses and investors
in Asias third-largest economy,
the priority had been a recovery
in growth, which would help
I ndia again attract investment
und Inows LIuL wouId IeIp
conLuIn u currenL-uccounL deh-
cit that surged to a record high
In LIe IusL hscuI yeur.
Wholesalers have also been
saying vegetable prices have
eased this month, providing
some poLenLIuI reIIeI on Inu-
tion, though analysts warned
prices could again spike.
I think it is just postponement
of action, because the policy
clearly says they (the RBI ) may
take action any time, even in
the interim between two poli-
cies, if the situation warrants,
said Rupa Rege Nitsure, chief
economist of Bank of Baroda in
Mumbai. Reuters
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December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
18
People participate in the so-called "Last demonstration with illegal marijuana" on their way to the Congress building in
Montevideo.
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Uruguay Becomes First Country to
Legulise Murijounu Trude
Malena Castaldi and
Felipe Llambias
U
ruguay became the
hrsL counLry Lo IeguIIse
the growing, sale and
smoking of marijuana recently,
a pioneering social experiment
that will be closely watched by
other nations debating drug
liberalisation.
A government-sponsored bill
approved by 16-13 votes in the
Senate provides for regulation
of the cultivation, distribution
and consumption of marijuana
and is aimed at wresting the
business from criminals in the
small South American nation.
Backers of the law, some
smoking joints, gathered near
Congress holding green bal-
Ioons, JumuIcun ugs In Iom-
age to Bob Marley and a sign
saying: Cultivating freedom,
Uruguay grows.
Cannabis consumers will be
able to buy a maximum of 40
grams (1.4 ounces) each month
from licensed pharmacies as
long as they are Uruguayan
residents over the age of 18 and
registered on a government
database that will monitor their
monthly purchases.
When the law is implemented
in 120 days, Uruguayans will
be able to grow six marijuana
plants in their homes a year, or
as much as 480 grams (about
17 ounces), and form smoking
clubs of 15 to 45 members that
can grow up to 99 plants per
year.
Registered drug users should
be able to start buying mari-
juana over the counter from
licensed pharmacies in April.
We begin a new experience in
April. I t involves a big cultural
change that focuses on public
IeuILI und LIe hgIL uguInsL
drug LrumckIng, Uruguuy`s
hrsL Iudy, SenuLor uciu Topo-
lansky, told Reuters.
Uruguays attempt to quell
drug LrumckIng Is beIng IoI-
lowed closely in Latin America
where the legalisation of some
narcotics is being increasingly
seen by regional leaders as a
possible way to end the violence
spawned by the cocaine trade.
Rich countries debating legal-
isation of pot are also watching
the bill, which philanthropist
George Soros has supported as
an experiment that could pro-
vide an alternative to the failed
US-led policies of the long war
on drugs.
The bill gives authorities 120
days to set up a drug control
board that will regulate cultiva-
LIon sLundurds, hx LIe prIce und
monitor consumption.
The use of marijuana is legal
in Uruguay, a country of 3.3
million that is one of the most
liberal in Latin America, but
cultivation and sale of the drug
are not.
Other countries have decrimi-
nalised marijuana possession
and the Netherlands allows its
suIe In coee sIops, buL Uru-
guuy wIII be LIe hrsL nuLIon Lo
legalise the whole chain from
growing the plant to buying and
selling its leaves.
Several countries such as
Canada, the Netherlands and
I srael have legal programs
for growing medical cannabis
but do not allow cultivation of
marijuana for recreational use.
Last year, the US states of Col-
orado and Washington passed
ballot initiatives that legalise
and regulate the recreational
Myanmar Summary
use of marijuana.
Uruguays leftist president,
J ose Mujica, defends his initia-
tive as a bid to regulate and tax
a market that already exists but
is run by criminals.
Weve given this market as a
gIIL Lo LIe drug Lrumckers und
that is more destructive socially
than the drug itself, because
it rots the whole of society,
the 78-year-old former guer-
rIIIu hgILer LoId ArgenLIne news
agency Telam.
Uruguay is one of the safest
Latin American countries with
little of the drug violence or
other violence seen in countries
such as Colombia and Mexico.
Yet one-third of Uruguays
prison inmates are serving time
on charges related to narcot-
Ics LrumckIng LIuL Ius Lurned
Uruguay into a transit route
for Paraguayan marijuana and
Bolivian cocaine.
I f it works, the legislation is
expected to fuel momentum for
wider legalisation of marijuana
elsewhere, including the United
States and in Europe. Decrimi-
nalisation of all drug possession
by Portugal in 2001is held up
as a success for reducing drug
violence while not increasing
drug use.
This development in Uru-
guuy Is oI IIsLorIc sIgnIhcunce,
said Ethan Nadelmann, founder
of the Drug Policy Alliance, a
leading sponsor of drug policy
reform partially funded by
Soros through his Open Society
Foundation.
Uruguay is presenting an
innovative model for cannabis
that will better protect public
health and public safety than
does the prohibitionist ap-
proach, Nadelmann said.
Reuters
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,_..:_~._~:. .q._.
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_~._~: . . q._ .. _~. .~q ~:~:
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.~ ~q:.~~.q.~.._e._..
..e....~|..:.~:. .~.._...
.q:.._...:.._ ~q:.~.e~
._~: .._. . q._ .~.,.| ,e .:
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e~~ ...._.:~..:.~:. .~..
q, ~~ ~ ~q:.~ ~. ~. .:.q
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Weve given this market as a
gift to the drug traffickers and
that is more destructive socially
than the drug itself, because it
rots the whole of society.
INTERNATIONAL BIZ
19
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Summary
Contd. P 20...(CSK)
Myanmar Business Today
mmbiztoday.com
Australia Govt Staring At Debt Mountain as
Economy Slows
Budget defcit blows out to A$47b for 2013/14; Revenues drained by sluggish growth, fading mining boom
Wayne Cole and
Lincoln Feast
J
ust three months in
power, Australias Liberal
National government has
abandoned all thought of re-
turning to a budget surplus and
predIcLed dehcILs Ior LIe nexL
decade without spending cuts,
heralding sober times ahead for
the resource-rich country.
As subpar economic growth
and a cooling mining boom
carve a hole in government
hnunces, Treusurer Joe Hockey
warned that Australia had to
cIImb u cIuIIengIng hscuI und
economic mountain.
Returning the budget to
sustainable surpluses will
not be achieved by piecemeal
savings here and there. I t will
require a sustained and funda-
mental structural overhaul of
expenditure, said Hockey as he
announced the countrys third-
IurgesL dehcIL on record.
The Coalition government
now expects a shortfall of A$47
billion ($42 billion) for the year
through J une 2014, up from
a previous forecast of A$30.1
billion made only four months
ago.
The gap would narrow only
slowly to A33.89 billion in
2014/ 15, A$24 billion the year
after and still be at A$17.7 bil-
lion in 2016/ 17.
I t highlights the scale of the
funding challenge ahead, said
Su-Lin Ong, a senior economist
at RBC Capital Markets.
I ts not a debt path you would
want to remain on, so theres
going to have to be a tough
conversation on what amount
of austerity lies ahead.
The scope for drastic spending
cuts or tax increases is limited
by the sluggish economy, which
grew 2.3 percent in the year to
September.
Hockey forecast growth of
2.5 percent in both 2013/ 14
and 2014/ 15, short of the 3.25-
3.5 percent pace considered
normal in a country that has
noL suered u recessIon Ior zz
years.
The Reserve Bank of Australia
has done what it can to support
growth by cutting interest rates
to a historic low of 2.5 percent,
but has appeared reluctant
to ease any further for fear of
stoking a speculative bubble in
house prices.
Some of the deterioration in
the budget bottom line is due to
steps taken by the new govern-
ment, in particular a plan to gift
A$8.8 billion to the RBA to help
rebuild its reserves.
I t has also scrapped revenue-
raising plans including fringe
benehLs on cur Ieuses und LuxIng
high pension incomes.
Reuters
A mine worker lays out safety cones in front of giant mining trucks at the Fortescue Solomon iron ore mine located in the
Sheila Valley, around 400 km (249 miles) south of Port Hedland, in the Pilbara region of Western Australia.
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Glaxosmithkline to Stop Paying Doctors to Promote Drugs
Ending sales reps targets globally following US move; Comes amid criticism of aggressive industry sales tactics
Ben Hirschler
G
laxoSmithKline will
stop paying doctors to
promote its products at
events and remove individual
sales targets for its marketing
sLu In u hrsL Ior LIe drugs In-
dustry looking to recover from
scandals over improper sales
practices.
I t also said last week it would
stop payments to healthcare
professionals for attending
medical conferences.
The initiative represents a bid
by Britains biggest drugmaker
to get ahead of its critics by
uddressIng poLenLIuI conIcLs
of interest that could put com-
mercial interests ahead of the
best outcome for patients.
I t comes amid a major bribery
investigation in China, where
police have accused GlaxoS-
mithKline (GSK) of funnelling
up to 3 billion yuan ($494
million) to travel agencies to
facilitate bribes to boost its
drug sales.
However, the company said
the measures were not directly
related to its Chinese problems
and were rather part of a broad
eorL Lo Improve Lrunspurency.
The entire drugs industry has
been under hre Ior uggressIve
marketing tactics in recent
years and the GSK action is
likely to put pressure on other
companies to consider similar
steps.
I n the United States, the
industrys biggest market by
far, many companies have run
InLo conIcLs over Improper
sales tactics and GSK reached
a record $3-billion settlement
with the US government last
year over charges that it pro-
vided misleading information
on certain drugs.
A number oI oLIer hrms
have taken some steps to clean
up their marketing practices.
AstraZeneca said in 2011 it
was scrapping payments for
doctors to attend international
congresses but others, until
now, have not followed suit and
GSKs actions go further.
We recognise that we have
an important role to play in
providing doctors with infor-
Contd. P 20...(CSK)
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December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Myanmar Summary
Alwuys Keep Som cient Liqoidity
David Mayes
T
his is not the most excit-
ing topic in the world but
if you get it wrong when it
comes to liquidity you can really
suer. TIe muIn LIIng wouId
like to make sure you under-
sLund Is LIe dIerences beLween
stated liquidity and the actual
liquidity of a funds underlying
usseLs. TIe bIg dIerence oILen
lies in the valuation method
used.
Many funds trade exclusively
in liquid securities such as
shares on a major stock ex-
change, or futures contracts.
When things dont go so well,
and investors start to want to
redeem some or all of their
investments, it is quite easy for
these funds to go dump their
holdings on the open market to
raise the cash required to meet
such redemptions.
Generally the funds which
trade in very liquid securities
have a mark to market valua-
tion method. This is easy to do
because of the large number of
transactions, and thus the last
sale is generally a good proxy of
the price the fund could achieve
if it needed to liquidate its hold-
ings. Slippage is the technical
Lerm Ior LIe dIerence In wIuL
they would actually get, since
their own selling pressure
would cause the market to move
against them. Generally slip-
page is relatively small even for
a large fund if the markets are
very liquid.
Mark-to-model on the other
hand, requires a much more
complicated estimation of the
net asset value, or what the
shares of the fund are actually
worth. Property funds tend to
be mark-to-model out of neces-
sity, since there is no exchange
for buying and selling proper-
ties. I n practice the models can
be somewhat misleading some-
LImes, sInce LIere Is u conIcL
of interest involved. Obviously,
the more favourable the model
used, the better the returns look
and the easier it is to market the
fund.
This is where you can get
caught in a trap if you arent
careful. Most mark-to-model
funds promise unrealistic
liquidity terms. They may trade
monthly and if all is going well
you can redeem and be paid out
in a month. However, and this a
big however, if it all goes wrong
it can very quickly turn into a
situation where you wait years
for your money back.
As there have been several
IIgI prohIe IuIIures In prop-
erty funds recently, there has
been a small backlash against
mark-to-model funds in the
international advice industry.
Many advisors are selling out of
them en masse and this actually
makes the problem worse, as
some funds end up suspended
out of nothing other than fear.
My advice is to simply man-
age the liquidity based on the
underlying holdings as opposed
to avoiding mark-to-model
funds altogether, since they
can provide a much needed
bIL oI dIversIhcuLIon und non-
correlation to traditional asset
classes.
I n recent times where when
things go bad, traditional asset
classes have become more and
more correlated and this is a
very dIm cuIL LIIng Ior InvesLors
to deal with. Simply make sure
the vast bulk of your portfolio
is in funds which trade in liquid
underlying assets. I would keep
it to a maximum of 20 percent
of your portfolio. This way, if all
of the mark-to-model funds you
hold get tied up simultaneously,
you ought to have no reason to
worry about having liquidity
troubles.
David Mayes MBA provides
wealth management ser-
vices to expatriates throughout
Southeast Asia, focusing on
UK pension transfers. He
can be reached at david.m@
faramond.com. Faramond UK
is regulated by the FCA and
provides advice on taxation
and pensions.
mation about our medicines,
but this must be done clearly,
transparently and without any
percepLIon oI conIcL oI InLer-
est, Chief Executive Andrew
Witty said in a statement.
The decision to stop payments
to doctors for speaking about
medicines during meetings with
other prescribers marks a big
shift for a global industry that
has always relied heavily on the
Inuence oI experLs In promoL-
ing products.
GSK said it aimed to imple-
ment this move and a related
measure to end paying for doc-
tors to attend medical confer-
ences by the start of 2016.
The change in payments to
its sales representatives will be
implemented faster, following
a successful test-run in the
United States, where payments
have been decoupled from the
number of prescriptions gener-
ated since 2011.
The policy of ending indi-
vidual sales targets will now be
rolled out globally. GSK said it
planned to implement the new
compensation system in all
countries by early 2015.
GSK will still pay fees to
From page 19...(CSK)
From page 19...(CSK)
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doctors carrying out company-
sponsored clinical research,
advisory activities and market
research, which it said were es-
sential in providing insights on
specIhc dIseuses. Reuters
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_..:.q.: ..:q~.:.q.__e.
~: _..,:~. . ~. q: ._e. . :..~:
..:q~.:.q._e ~...:..
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Property funds tend to be mark to model out of necessity, since there is no exchange for buying and selling properties.
N
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s
INVESTMENT & FINANCE
21
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Summary
Myanmar Business Today
mmbiztoday.com
Singapores UPP
Greentech Terminates JV
with Myanmar Partner
S
ingapore-listed conglomerate UPP Greentech said it is
terminating its joint venture agreement that it struck with
its Myanmar partner in J uly.
I n a disclosure to the Singapore Exchange, the board of di-
rectors of UPP Holdings Ltd announced that UPP Greentech
Pte Ltd and Myan Shwe Pyi Ltd (MSPL) have entered into an
agreement to terminate their joint venture agreement (J VA) by
mutual agreement.
However, the company will still incorporate the J V vehicle.
Notwithstanding the termination of the J VA, pursuant to the
agreement, UPP Greentech and MSPL, have agreed to proceed
with the ongoing incorporation of UPP-MSP, which would be
the joint venture vehicle for any future investment of the parties
In Myunmur, UPP suId In LIe hIIng.
I n J uly, UPP Greentech, a subsidiary of UPP Holdings Ltd,
inked a joint venture agreement with MSPL to establish a com-
pany called Kanaung Engineering Ltd.
Under the agreement, UPP Greentech was supposed to own 67
percent stake in Kanaung, with the remaining 33 percent held
by MSPL.
Kanaung Engineerings main operations were expected to
involve the blasting and drilling of rocks and/ or breaking down
blasted rock materials into aggregates to support key infrastruc-
ture projects in Myanmar.
The J V company will have had a total issued and paid up capi-
tal of $20,895,523 (S$26.52 million).
UPP said the total issued and paid-up share capital of
UPP-MSP will be maintained at its current level of $50,000
comprising 50,000 ordinary shares of $1each as required by
LIe CompunIes RegIsLruLIon Om ce oI Myunmur und wIII noL be
increased to $12 million divided into 12 million shares of $1.00
each as contemplated in the J VA.
The total issued and paid-up capital of UPP-MSP is held in
the following proportions: MSPL, 12,500 shares representing 25
percent of the share capital of UPP-MSP; and UPP Greentech,
37,500 shares representing 75 percent of the share capital of
UPP-MSP.
UPP Greentech has two board seats, whereas MSPL has one
board seat on UPP-MSP.
UPP said the termination of the J VA and the incorporation
of UPP-MSP are not expected to have any material impact on
the consolidated net tangible assets per share and earnings
per share of the company and its subsidiaries, for the current
hnuncIuI yeur endIng 1 December.
Kyaw Min
family income. I n poppy grow-
Ing vIIIuges, sIgnIhcunLIy more
households are in debt and food
insecure than in non-poppy
growing villages.
Villagers threatened with
food insecurity and poverty
need sustainable economic al-
ternatives or they will continue,
out of desperation, to grow
opium as a cash crop, Eligh
said.
Plans are also underway to link
infrastructure and transporta-
tion routes between countries,
highlighting the urgent need to
crackdown on opium cultiva-
tion, says the UNODC, since
From page 9...(SL Asia)
drug Lrum ckers couId be LukIng
advantage of easier integration
to access growing markets.
The UNODC is working to
develop alternative livelihood
options to help farmers switch
to cultivating other crops, said
Douglas. But these programs
have been of limited size to date
und need Lo be sIgnIhcunLIy
scaled up.
Eligh told WSJ that in the
absence of alternative employ-
ment and viable economic plans
to help develop impoverished
poppy growing areas, then
indications are that [opium
production] may continue to
rise.
From page 9...(SL Asia)
Chinese Businesses Should
Invest in Factories: UMFCCI
Phyu Thit Lwin
C
hinese investors should
set up factories in My-
anmar rather than only
buying raw materials from the
recently-opened Southeast
Asian countries, a top Union
of Myanmar Federation of
Chambers of Commerce and I n-
dusLrIes (UMCC) om cIuI suId.
Chinese entrepreneurs
should not only buy raw
materials but also come and
build factories in Myanmar to
munuIucLure hnIsIed producLs
and export them to other coun-
tries, Aye Lwin, joint secretary
of UMFCCI , said.
Compared with other coun-
tries China is by far the largest
trade partner of Myanmar. Bi-
lateral trade between Myanmar
and China amounted to $5.6
bIIIIon durIng LIe hrsL eIgIL
months of 2013, up 25.4 per-
cent compared with that of the
same period of 2012, according
to the Ministry of Commerce
statistics.
Myanmar businesspeople said
China should readjust its high
Luxes on LIe ImporL oI hnIsIed-
goods from Myanmar. China
imposes low taxes on raw ma-
terials but imposes punishing
Luxes on hnIsIed goods Irom
Myanmar.
I n this regard, fair trade terms
and tax reduction is necessary,
U Aye Lwin said.
I f Myanmar exports raw ma-
terials such as mineral, gems,
LImber, beun, hsI und meuL,
China gives tax exemption. But
II hnIsIed producLs ure exporL-
ed, there is a very high tax. So,
there is a very little chance for
us Lo exporL hnIsIed producLs
to China.
Local entrepreneurs now
even export bean as raw mate-
rial and we are losing many
chances to enhance our trade,
he said.
Ren Shao, assistant director
of the Department of Foreign
Trade and Economic Coop-
eration of Guangdong Province,
said she would report this to the
Chinese government.
Aye Lwin was speaking at
a business meeting between
Myanmar and Chinese en-
trepreneurs, co-organised by
the UMFCCI and the China
Council for the Promotion of
I nternational Trade (CCPI T) of
Guangdong Province.
The 22-member delegation of
the CCPI T (Guangdong) arrived
in Myanmar to explore business
opportunities in December 11.
The Chinese entrepreneurs said
they aim to make joint ventures
in wood manufacturing, shoe
making, advertising and media,
among others in Myanmar.
A total investment of $75 mil-
lion is planned, they said.
China is the largest foreign
investor in Myanmar among
the 33 foreign countries, with 51
businesses investing about $14
billion in Myanmar.
Currently, J apan, South Ko-
rea, the US and other European
countries are eyeing Myanmar
for investments according to
international standards, so Chi-
nese businessmen should come
and invest like other countries
for long-term, sustainable
businesses, Myanmar entrepre-
neurs said.
.~:.~ .:q...:.._ ...:..q.~~:.._~._e.._ UPP
Greentech ._ ~..~ _.,.: . . _._ ~ .. . , .~. . . ~~ .~
....|.._.. e.~.| ~~.~ . ...| .. ~ ~. ..~ q, ~~ ~ ..: q ~ .,
._~: . ~. .|~ . ~ . ._.:_~:. .._.
UPP Holdings Ltd . ~~e~._~..:.~ UPP Greentech Pte
Ltd . Myan Shwe Pyi Ltd (MSPL) ~._ ~~.~e~..
..:~_.~~:. .....e~ ..:~_._e ~...~q, ~.,~
:.. .q:~q.:._._e.._~:. ~_.,._.:_~:..._.~~.~e~ ..
..:~ _ .~ ~:. ~. ..~ q, ~~ ~ ..:~ _._~..:._ . UPP
Greentech . MSPL ~._ UPP-MSP ....|...:q~...,.
.:.~ .~.~....:q,~~ ~ ..:~_._~._~:. UPP .
._.:_~:..._.
~..~ UPP Holdings Ltd - ..,..~.._e...: UPP
Greentech ._ MSPL . Kanaung Engineering Ltd ~.~ ~:.
~_ .: q, ~~ ~ ~~ .~ e~ .. . . , ...:~ _ .~~.~ . ~
.q...._.~..| ..:~_ .~~q UPP Greentech ._ ~.~-
qee: ' q:..,.~ .._.. ~,q..: qee: ,, q:..,.~:.
MSPL . ..._~:. .q._.
~, . , ~ ~, q ._ _e. _. . UNODC
. ...:.,.....:.~ ~_...
~.,~:.~. q. ._ ._ e. ._ ~: .
.q._.
, ._e. ~_.:.~. .. ...: ~q:.
.~..e....~|..:. ~..q:~
~. ~.|~ .. _ ._e. ..: , .. ~ . .
~...._ .:~~ .~...
..~.~_ ~~~~~ ~._.:.
~....q ..~ ~..
.:._~:. .q._. ..~..~q
_.,.:.~ ,..~..~...
_. ~~ .:. ~ e ....- ~ . .
..,.:.~:. ....~:. _.~~
.:...._~:. .q._.
~, ~ . ._ _., .:. - ~. ~
...:.e~.~.._e._.. ,e..~,
.e. ..,~,.e...:~.:..:
._. ...~.~~.~q~: ~_.:.
..:.- ~,.e....e.|~
~.:...~.~q..:._. ,.
~~.,_e _._~.. ~,_~...._.
.:.~.: ~.~~ee.,._e .~
._ ~,.e. ~.,~..~:~..
~ ~ _.. . q, . ~. ._ e _., .:.
~,._.:.. .~..~...,.q
. :.~. .. . . ~ e~ ~. .
~~ ..q... ..~..~ ._.:._.
_.,.:.~ ~,~.~ .~
.e~:~ .~:~.~.~:~...
.. . .:.|..~~,_~...~ ~
..q ~,~~..q~~ ~.,~.
~ .. ~ . ..._. . ~ , ..:.~ ~ .~:
~. , ~._~ .. : .~ . ~ :.~ ~~ ~
~,..:~... ~.~.q.,_.
.|..,~e. _._~....:..q...,.
q .~ . : ~ , _~. .~_e. , . ~ . .,q
.~: ~.~.q...,...~ ~.:._~.
.''e ,.~ .~.~._.:.._.
Source: UNODC
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
Myanmar Summary
Myanmars Electricity Crisis:
Hope on the Horizon?
Angelo Georgiou
C
ould we be see-
ing an end to the
electricity crisis in
Myanmar? I t seems so.
Cyprus-based Andreas
Theodorou Group of
CompunIes Ius omcIuIIy
oered Lo KIIn Muung
Soe, minister for energy,
and Zayar Aung, minister
for electricity, an invest-
ment of $25 billion for the
development of nation-
wide green, sustainable
energy in Myanmar.
We are entering the year
2014 and 70 percent of
Myanmars vast popula-
tion still does not have
access to sustainable
electricity supply. Logic
tells us that if all citizens
of Myanmar had access
to sustainable and clean
electricity supply, it will
provide a higher quality
of life and higher chances
of a better economic state.
Electricity can ensure
clean water supply, help
improve agriculture,
industry, health and edu-
cational services; overall
it would help increase
life chances and greatly
increase the quality of
life for Myanmar citizens
who would then be able to
better plan a sustainable
future for themselves.
Currently, the majority
of Myanmar citizens are
economically crippled
and cannot adequately
plan their future due to
the lack or no access to
uninterrupted electric-
ity supply. The future
and progress of Myanmar
is largely dependent
upon clean and green
uninterrupted sustain-
able electricity supply to
every single citizen of the
country. I magine 42-45
million more Myanmar
citizens with access to
electricity and it will be
easy to picture the incred-
ible overnight positive
progress of the nation.
Myanmar is a growing
nation with proud and
highly-educated, skilled
people, whose future is
held back and/ or stumped
due to the lack of industry
growth and opportuni-
ties which is due to lack
of sustainable national
electricity supply.
Ambassador C Vassili of
I CPT I nternational Hu-
man Rights Council, who
is from Cyprus, realised
the great need for green
energy investment in
areas of waste to energy,
which further reduces
the ongoing hazardous
waste issues, bio-mass,
solar, wind, gas turbine
power stations and hy-
dropower in Myanmar.
He entered into talks
with the ambassador of
Myanmar to the UK to
discuss how such projects
couId benehL Myunmur so
that all its citizens could
benehL Irom conLInuuI
nationwide sustainable
electricity supply.
Europeun hrm Andreus
Theodorou Group of
Companies also entered
LIe LuIks und oered un
investment of $25 billion
in green energy develop-
ment in Myanmar. The
proposal made to Zayar
Aung and Khin Maung
Soe has been welcomed
and is expected to lead
Lo LIe greuLer benehL oI
Myanmar and its citizens.
Let us look at the
benehLs oI LIe Andreus
Theodorou Group of
Companies investment.
TIe hrm wIII seek joInL
venture partnership with
Myanmar companies,
which the latter will
dIrecLIy benehL Irom und
create local employment
and revenue. Energy
development subcon-
tracts will also be aimed
at Myanmar companies
through this venture, and
it will create thousands of
long term jobs for Myan-
mar citizens.
The venture will provide
electricity access to all
Myanmar citizens of
which some 42-45 million
of its citizens do not cur-
rently have access to main
grId or o grId susLuInubIe
green electricity supply.
This investment will
place Myanmar in a posi-
tion where it will not need
to seek to buy electricity
from other countries. I n
turn, it will help improve
and create new home in-
dustries, improve exports,
create new agriculture
and clean water supplies,
attract foreign invest-
ment, help improve and
create new educational
and health facilities, and
bring Myanmar many
years ahead of its energy
roadmap.
More importantly it will
give Myanmar its national
pride and greatly improve
the quality of life of its
citizens and better allow
them the means to cre-
ate a brighter future for
themselves and genera-
tions to come.
The Andreas Theodorou
Group of Companies have
already shown their sin-
cerity and commitment
to the investment via a
signed and memorandum
A Cyprus-based company has offered to invest $25 billion in Myanmar's electricity sector to provide
nationwide green, sustainable energy.
O
liv
e
r

S
lo
w
of understanding which
now awaits the signing by
the Ministry of Electric-
ity to progress matters
Lowurds hnuI conLrucLs.
TIe benehL oI LIIs coI-
laboration between the
Andreas Theodorou &
TBEA Sunoasis and the
ministry will bring Myan-
mar and its citizens into
the light. This would be
the greatest gift Myanmar
has ever provided to its
people.
Angelo Georgiou is the
Chief of International
Agcirs oj the ICPT Inter-
national Human Rights
Council. Views and opin-
ions expressed here are
the authors own.
. ~ .q~ . ~._.. ~ Andreas
Theodorou Group of
Companies . ...~~,_~.
....:... .......~:.
~, _~ . ..~e:.~: ~ ~:.
~..q~,..'.: .e
~. ._._ _., .:. ~ ., q .
_.. .qq_~_~e_e....~
. . , . e_ e . ~ . ~~ . .:. ~
..:q~q,~~~ ~q:.~
~......._~:. .q._.
e. ~.| ~~, . . . . .q:~ q
.~: ._ _e. _. . _ ., .:. q
...q- ~ q:..,.._
.qq _ ~_ ~ ..:.. .. .:~
~:. .:~...:.~ .qq.
......~ ~ .~ . .:.~q _., .:
. .:.~:.. .~.,_e .qq _
~_~ _. . ., q ...: .. ..
. . .~~ qq . ._ . . . .
~~q_ ~....:.~ .._.
~.:.._ _e. _.. ... :..q.
~~ ~ ._ . . . _. .:...:
~. ~.. ..:. ..' ~ .:.
..._ _e. ._ .
e. .~ q ~. , ~ _ ., .:
.. _._.~.:...: ...:.
.q.~ ~ ~:.._ , .,_. . .
.~ ._ .~ .. .. .:~ ~:.
.:~ . . ~ .qq _. .._~:
,.~- ~,:~~~~._.
~. ~. .~: ..:. ._.. . .
._ ~.,~:.~ q .,._ .
~,:~ . e _e .~ .~~ . ._
., q ._. . . .~ ._.~ .. ..
.:~ ~:..:~ . .... . ~..'
~ ~.:._~..~_.,._.
INVESTMENT & FINANCE
23
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Business Today
mmbiztoday.com
Myanmar Summary
Thailands PTT aims to list power unit on
Bangkok bourse in mid-2014
T
hailands biggest energy
hrm PTT PcI suId IL pIuns
to sell about 25-30 per-
cent of an electricity generation
company in an initial public
oerIng In mId-zo1q Lo ruIse
funds for regional expansion.
PTT`s CIIeI InuncIuI Omcer,
Surong Bulakul, told report-
ers at a news conference that
the strategy is part of state-
controlled PTTs drive to triple
Global Power Synergy Cos
(GPSC) generating capacity to
6,000 megawatts in 2020 from
2,000 MW. Surong gave no
details about the value of the
listing, expected on the Bang-
kok stock exchange.
GPSC aims to invest in de-
veloping its power business at
home, as well as expanding into
Laos, I ndonesia and Myanmar.
The business, a joint venture
between PTT and its subsidiar-
ies Thai Oil Pcl and PTT Global
Chemical Pcl, is expected to
contribute about 5-10 percent
of PTTs group revenue in the
next 10 years, Surong said.
PTT has also planned to dilute
its 36 percent holding in Star
PeLroIeum RehnIng Co (SPRC)
in a separate IPO sometime next
year. SPRC, 64-percent owned by
oil giant Chevron Corp, operates
u 16o,ooo burreI-per-duy rehn-
ery in eastern Rayong province.
The energy giant previously
scaled back spending plans for
this year due to lower-than-
expected economic growth, and
said it wanted to sell non-core
assets, like its palm oil business
in I ndonesia. Reuters
Contd. P 26...(]apan Loans)
Japan to Provide Fresh
$61om Louns to Myunmur
J
apan pledged to provide
another 63 billion
($610.53 million) loans to
Myanmar recently, mainly to
fund the Southeast Asian coun-
trys infrastructure projects.
With J apanese Prime Minis-
ter Shinzo Abe having promised
aid of 91 billion in loans to
Myanmar in May, the total aid
of J apan under his government
is now more than 150 billion.
We will continue to provide
support, both at the public and
private level, for infrastructure
building initiatives and work
toward Myanmars develop-
ment, Abe said at a joint press
conference after meeting with
Myanmars President Thein
Sein, who came to J apan to
attend the regional summit
between J apan and the Associa-
tion of Southeast Asian Nations
(ASEAN).
The loans are designed to
help build infrastructure for the
Thilawa Special Economic Zone
in the suburbs of Yangon, Myan-
mars largest city, and upgrade
a railway network in Myanmar,
among other projects.
Abe also pledged J apans
support for Myanmars health
and medical sectors, and postal
system. He told Thein Sein dur-
ing their meeting that he wants
to cooperate closely with the
president next year to achieve
major progress in developing
the ASEAN region.
Myanmar will hold the ASEAN
cIuIrmunsIIp Ior LIe hrsL LIme
in 2014. J apan and Myanmar
will mark the 60
th
anniversary
next year of the establishment
of diplomatic ties.
Su Su Tensions between China and
J apan have mounted this year
in the East China Sea over dis-
puted islands. Beijings decision
last month to declare an air de-
Iense IdenLIhcuLIon zone In LIe
area has added to the fraught
atmosphere.
Abe, since coming to power a
year ago, has promoted J apan
as an ally for Asian countries
that also are wary of Beijings
growing regional clout.
These include Myanmar, a
resource-rich nation that has
long been in Chinas sphere of
Inuence, buL wIose mIIILury
rulers have given way to a
nominally civilian administra-
tion and opened the country to
other foreign investors.
The J apanese prime minister
said J apan would make an
eorL Lo cooperuLe wILI My-
anmar and Thailand to develop
the Dawei industrial zone in
southern Myanmar.
Myanmar and Thailand are
planning to develop a 6,000-
acre project in Dawei, a south-
ern port town close to the Thai
border, and have sought to per-
suade J apan to join. The project
envisages building crude oil
storage facilities and a pipeline
across the border, greatly
reducing the cost of shipping
oil to Thailand. But the plan,
which was being backed by a
Thai company, has stalled due
to lack of capital.
Abes support for the develop-
ment, although lacking details,
is the strongest sign yet that J a-
pan could join the consortium.
J apans more activist role in
Myanmar is likely to be viewed
Myanmar Summary
Contd. P 26...(]apan Loans)
MIGA Welcomes
Myanmar as a New
Member
Shein Thu Aung
T
he Multilateral I nvestment Guarantee Agency (MI GA),
the political risk insurance and credit enhancement
arm of the World Bank Group, announced that My-
unmur Ius IuIhIIed uII oI ILs membersIIp requIremenLs Lo
become MI GAs 180
th
member.
Myanmars membership in MI GA means that direct for-
eign investment into the country is eligible for the agencys
investment guarantees.
MI GAs guarantees protect investments against the risks
of transfer restriction, expropriation, breach of contract,
non-IonourIng oI hnuncIuI obIIguLIons, und wur und cIvII
disturbance.
I nvestors from Myanmar going into MI GAs other devel-
oping member countries may also receive coverage for their
investments.
Were very happy to welcome Myanmar as a MI GA mem-
ber at a critical time in the countrys history, said Keiko
Honda, MI GAs executive vice president.
We are eager to support investments in sectors such as
energy, telecom, and agribusiness. I nvestments that create
jobs and provide critical infrastructure will help Myanmar
reuIIse LIe benehLs oI ILs IIsLorIc LrunsILIon.
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Keiko Honda ~ ._.:_~:..._.
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
24
INTIRNATIONAL AN OMISTIC ILIGHT SCHILLI
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 KKo ong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 13:00 14:00 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 14:20 15:20 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter
6T211 1 7 RGN NYT 15:30 16:25 Air Mandalay 6T212 1 7 NYT RGN 16:45 17:40 Air Mandalay
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
PROPERTY & REAL ESTATE
25
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Summary
Myanmar Business Today
mmbiztoday.com
People look out from their apartments in an older part of Yangon. Affordable apartments and hostels for people coming to Yangon from
different parts of Myanmar are getting increasingly rare amid surging rentals.
Soaring Rentals Hurt Yangon-bound
Workers and Students
D
a
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ir

S
a
g
o
lj/
R
e
u
t
e
r
s
W
orkers and stu-
dents coming to
Yangon from all
over Myunmur ure hndIng
IL IncreusIngIy dImcuIL Lo
uord LIeIr sLuy due Lo
spiralling rental prices in
the commercial hub of the
country, sources say.
Yangon has always been
a pull for workers around
Myunmur wIo hnd IL dII-
hcuIL Lo eurn enougI In
other parts of the country
due to a centralised
economy and lack of job
opportunities. The same
goes for students who
aspire for higher educa-
LIon us Myunmur oers
very few, or no, quality
educational institutions
around the country except
for Yangon.
However, the inbound
population, which surged
to a greater height fol-
lowing sweeping reforms
which started taking place
in 2011, is now strug-
gIIng Lo hnd uordubIe
apartments and hostels
because of surging rental
prices.
My salary is K70,000
per month. In 2011, hostel
fees were increased from
K15,000 to K20,000,
and last year it went up
to K25,000. Some had to
Phyu Thit Lwin even pay K30,000, Ma
Eaint Chit, a tenant at a
hostel in Kamayut town-
ship, said.
If the hostel rental is
almost half of your salary
you cun`L uord Lo sup-
port your family anymore.
Rather I have to ask for
help from my family
now, she added.
To compound the prob-
lems, tenants have to rent
an apartment or hostel for
at least six months up to
one year and the whole
rent has to be paid in
advance on top of which
there is a fee equal to one
months rent that has to
be paid to the broker.
Tenants say when a new
contract is signed the
rental also goes up almost
without exception.
Before 1990 in Yangon,
tenants only had to pay
a deposit agreed before-
hand between the house
owner and the renter, and
the rental was later paid
per month. However,
the new system of pay-
ing the full one-year or
six-month rental became
commonplace afterwards.
Apartment and hostel
rental charges have been
on the up for the last two
and a half years in Yangon
and in some other major
cities in Myanmar, and
experts say this trend
is unlikely to cease in
the near future as the
Inbound ow oI economIc
migrants soars.
Realtors Call for
Locution-bused
Estate Taxes
Htet Aung
T
he authorities should collect real estate taxes
according to the estates respective locations in
Yangon, realtors say.
Yangons real estate agents said real estate tax rate in
LIe suburbs oI Yungon sIouId be dIerenL Irom LIose
in downtown.
Real estate market has been on the rise and at the
end of 2013 the business remains brisk. Urban real
estate markets or real estates in downtown Yangon
sell more than those in the suburbs. So, the purchase
tax in the outskirts should be less than the downtown
estates, said U Aung Moe, director of a Yangon-based
real estate agency.
In October, the authorities put a cap on land prices in
Yangon to rein in on the overheated property market.
This year, we have seen many changes regarding laws
and regulations. But still the market is soaring. In this
situation, real estate purchasers in Yangon city should
puy Lux dIerenLIy Irom purcIusers In LIe ouLskIrL oI
Yangon, said Daw Yu Maw, another real estate agent
from Yangon.
The tax should be collected based on the location of
the estates. Then people will think about buying lands
after carefully considering the tax rate, she added.
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~ ._.:._.
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
26
Myanmar Summary
From page 9...(MasterCard)
PROPERTY & REAL ESTATE
in Beijing as part of attempts by
the US to contain China in the
region, analysts say.
The US and Japan have been
among the most vocal op-
ponents of Chinas air defense
zone in the East China Sea.
It is clear that the Chinese view
Japan in Myanmar as linked to
the US policy of containment
against it in the region, David I
Steinberg, a specialist on Myan-
mar at Georgetown University
in Washington, told the Wall
Street Journal.
Japans push is part of a
wider strategy in Southeast
Asia, where it has pledged $20
billion in aid and development
Iouns Ior LIe nexL hve yeurs und
engaged in closer military ties
with governments.
China still remains by far the
largest investor in Myanmar,
with which it shares a border.
The country has invested or
pledged $14.2 billion in the
country, a third of all foreign
investment. That compares
with $292 million from Japan.
Still, Japanese investors
pIedged $q mIIIIon In LIe hscuI
year ended April, up tenfold
from the year before that. Chi-
nese investors pledged $407
million, down from $12 billion
invested in the preceding four
years.
China denies that it sees Ja-
pans growing role in Myanmar
as a threat.
Yang Houlan, Chinas am-
bassador to Myanmar, said in
an interview that all foreign
From page 23...(]apan Loans)
investments could and should
be a blessing for Myanmar. He
added: Just because they are
in, it doesnt mean we are out.
For years, Chinese companies
made huge investments in
Myanmars rare gems industry
and in infrastructure. A $2.54
billion oil-and-gas pipeline that
traverses Myanmar to China,
and was funded and built by
Beijing, opened earlier this
month.
But there have been signs of
strain in economic ties between
the two nations. In 2011, Myan-
mar cancelled plans for China
to build a $3.6 billion dam in
Myitsone, citing environmental
concerns. Other resource pro-
jects have met protests.
John Lee, a visiting fellow and
China expert at the Singapore-
based Institute for Southeast
Asian Studies, told WSJ that
Chinas frustrations in Myan-
mar might open the door for
Japan.
But China is unlikely to pull
out of such a strategic area, Lee
said. If China wants to contin-
ue to pour politically-motivated
money into Myanmar, then
Jupunese hrms wIII hnd IL Iurd
to get a foothold.
From page 23...(]apan Loans)
Japan's Prime Minister Shinzo Abe (C) smiles with Myanmar's President Thein Sein (L) and Philippine President Benigno
Aquino (R) as they leave the stage during a gala dinner of the ASEAN-Japan Commemorative Summit meeting hosted by Abe,
in Tokyo.
T
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Thai Tycoon Delays $780m Property Fund
IPO Over Political Troubles
Khettiya Jittapong
T
he Thai real estate group
controlled by billionaire
Charoen Sirivadhanab-
hakdi has delayed a plan to
raise at least 25 billion baht
($780 million) from selling a
property fund to the public,
fund manager Krung Thai Asset
Management (KTAM) said.
TIe oer oI LIe TIuI HoLeI
Investment Fund will be post-
poned Lo LIe hrsL quurLer oI
2014 from the end of this year,
mainly due to regulatory pro-
cesses and unfavourable market
conditions brought about by
Thailands political troubles.
Last week Prime Minister
Yingluck Shinawatra called a
snap election for February 2.
She remains caretaker prime
minister but protesters want
her to go now, with political
reforms pushed through before
any election.
The current political situa-
tion has a psychological impact
on investor interest especially
retailers, Chavinda Hanra-
tanakool, senior executive vice
president for property funds at
KTAM, told reporters.
n LIe hrsL quurLer nexL
year, all problems should be
resolved, she said, adding
the fund manager has already
submILLed hIIng ubouL LIe Iund
oer Lo LIe SecurILIes und Ex-
change Commission.
The size of the fund was re-
duced from an initial 32 billion
baht, and assets to be trans-
ferred to the fund will include
12 hotels in Bangkok and major
tourist cities such as Phuket,
Chiang Mai and Samui.
Earlier this month, Thailands
largest shopping mall develop-
er, CenLruI PuLLunu, IndehnILeIy
postponed its plans to raise
8.86 billion baht through selling
units of its property fund due to
political violence in Bangkok.
Reuters
in March this year educated
small farmers, small business
owners and entrepreneurs (80
percent of them women) across
30 villages on basic business
skills and money management
practices.
The program saw an average
increase of 218 percent in par-
ticipant knowledge of key busi-
ness und hnuncIuI concepLs.
The curriculum for the
program was adapted from
Mercy Corps existing courses
currently in use in other Asian
countries. The training included
busIc busIness und hnuncIuI IIL-
eracy topics including market-
ing, market assessment skills,
cusI-ow unuIysIs, peLLy cusI
management, book keeping and
basic accounting.
In phase two, the program will
focus on business plan develop-
ment with the goal of increasing
economic returns for these en-
trepreneur and farmers. It will
involve targeted coaching, in-
depth small group training and
advisory services, and connect
these women entrepreneurs
wILI hnuncIuI servIce provIders
und oLIer resources und oer
guidance on all areas which are
critical to business growth and
success, MasterCard said.
The Delta is one of Myan-
mars most fertile agricultural
regions, but small-holder farm-
ers and their families face
tremendous challenges due to
climate variability, salt water
intrusion and poor access to
markets, information and agri-
cultural technology, said Nilan
Fernando, Myanmar country
director for Mercy Corps.
The entrepreneurs in this
program are highly motivated
to start and grow their own
businesses because the added
income improves the health
and well-being of their families,
and increases the productivity
and resilience of communities
across the region.
From page 9...(MasterCard)
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Sirivadhanabhakdi . ~. ~ , ...
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IT & TELECOM
27
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Summary
Myanmar Business Today
mmbiztoday.com
Govt Mulls Tech Innovation Centre to
Promote IP Rights
Move expected to help grow intellectual property rights landscape
Su Su
M
yanmar is planning
to set up a technology
and innovation sup-
port centre (TISC) to strengthen
its intellectual property sector,
a minister said.
The centre will be developed
in cooperation with the World
Intellectual Property Organiza-
tion (WIPO).
Ba Shwe, deputy minister,
Ministry of Science and Tech-
nology, said ensuring intel-
lectual property rights will play
a crucial role in the economic
development of the country.
The TISC will help innovators
and researchers in developing
countries to promote informa-
tion technology-related works,
create, protect and manage
intellectual property rights, the
minister said.
The initiative involves techni-
cuI experLs Irom TSC, omcIuIs
from related ministries and
representatives from non-
governmental organisations.
Myanmar has been embracing
new regulatory changes re-
cently as it gradually liberalises
its economy. This includes its
telecoms sector which it has
opened up for foreign telcos.
In June, Ooredo and Telenor
beat out more than 10 other
shortlisted telcos to win two
telecommunications licences.
Earlier in November, a law pro-
tecting intellectual property was
drafted following discussions
with local and international ex-
perts on copyright, trademarks
and industrial design.
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Property Organization (WIPO) .
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Telenor Selects Singaporean Firm as
Infrastructure Vendor
Apollo Towers to build and manage telecommunications infrastructure in preparation for mobile network rollout
Htet Aung
T
elenor Myanmar has
selected Singapore-based
t el ecommuni cat i ons
infrastructure provider Apollo
Towers us un omcIuI vendor
to build and manage telecom
towers across Myanmar, the
Norwegian telecoms giant said.
Telenor said the appointment
supports its plan of rapidly
rolling out a modern mobile
communications network in the
country.
Establishing telecom towers
represenLs un ImporLunL hrsL
step in the rollout of that net-
work and in Telenor Myanmars
goal of delivering high quality
and accessible mobile commu-
nications services to people
throughout Myanmar, Telenor
said in a statement.
Telenor said it will launch in-
novuLIve und uordubIe mobIIe
communications products and
services in Myanmar within
eight months of securing an
operating license from the My-
anmar government, and said it
expects the licensing process to
be hnuIIsed sIorLIy.
We are pleased to be work-
ing with Apollo Towers as we
enter this exciting phase in the
advancement of Myanmars
telecommunications industry,
Petter Furberg, chief executive
omcer, TeIenor Myunmur, suId.
We ure conhdenL LIuL com-
bination of industry experience
and expertise will meet the
requirements of Telenors busi-
ness plan and ensure the suc-
cessful rollout of our advanced
mobile network, Furberg
added.
The partnership between
Telenor Myanmar and Apollo
Towers provides the platform
for future multi-tenancy on
towers which will accelerate
LIe deveIopmenL oI un emcIenL
und cosL eecLIve sIured mobIIe
telecommunications infrastruc-
ture in Myanmar, Telenor said.
Francois Lorelli, chief execu-
tive of Apollo Towers, said: We
are delighted to ... participate in
this revolutionary transforma-
tion of the telecommunications
landscape in Myanmar. We
relish the challenges and the
opportunities it presents and
are committed to providing
world-class infrastructure on
time for Telenor.
Telenor said as part of its com-
mitment to contribute to the
local economy, Apollo Towers
will be working with a number
of Myanmar-based companies
in the infrastructure build-out
across the country, providing
opportunities for local busi-
nesses and promoting a more
vibrant business environment
in Myanmar.
Telenor is here for the long
run and we are committed
Lo IuIhIIIng our promIse Lo
support the modernisation of
Myanmars telecommunica-
tions sector through investing
in building state-of-the-art
telecom infrastructure which
is vital for innovation in other
key industries, and will drive
the countrys socioeconomic
development, Furberg said.
Sanjiv Ahuja, founder and
chairman of Apollo Towers,
said: I warmly welcome the
opportunity to partner with
Telenor on this exciting project
und um conhdenL LIuL LIe
deep sector knowledge and in-
ternational experience that we
can bring to bear will result in a
successful project for all parties
and will lay the foundation for
Apollo Towers to become a ma-
jor provider of shared telecom-
munications infrastructure
facilities in Myanmar.
Telenor Group has mobile
operations in 12 markets in
the Nordic region, Central and
Eastern Europe and in Asia,
employing about 34,000 peo-
ple. It has 161 million mobile
subscriptions worldwide, with
revenues of NOK 102 billion
($16.6 billion) as of Q3 2013.
Apollo Towers provides
construction, management and
leasing of telecommunications
tower infrastructure to mobile
operators. Apollo Towers Pvt
Ltd Singapore is a subsidiary of
Tillman Global Holdings LLC, a
Delaware LLC wholly owned by
Sanjiv Ahuja.
A woman talking on a mobile phone in Yangon, Myanmar.
U
A
u
n
g
/
X
in
h
u
a
Telenor Myanmar . .~:.~._.
. ~ .~ . e .q.~._.. ~..:~ ~~
.:.~:. .:~ . ...._ . . , .~. .
_e...: Apollo Towers ~:. _., .:
. ~. ~, .~ .~ . e .q.~:~|
.:.~:. ~_.:q,. ...,.q,
~~ ~ .q..e . ._~: . .,: .~..
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.q..e.._ Telenor - _.,.:
.~ ..~....~.e.q.
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. .q.~. ~. ~~ ~ ~.:~ ~~
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.~ . e .q.~:~|.:.~:. .:
_ ..._ .~ . e .q.~, q~ .:.
. . ..: . ~~ ~ ~.q..|..: ..
._.. . . ~.. . _ e. _ .. Telenor
Myanmar ~.,_e _.,.:.~
~q_ ~..._. .:._. . . ~ ..~ . . ..
._ .~.e.q.~,..: ..:.~:.
.:~ . .... :.. q, q_ . , ..~
~~~ e...:q~.~ ~.q..|
._~:. Telenor . ._.:_~:..._.
.,..._.. ...:..: ...~
. e .q. ~ ~ , .:.. ~, ..: . .:.
~:. _., .:. ~ ..: q ~ . :.._
_e.._~:. ..~._. ~.,~
~~ . ~_. ..~ ..: q ~ . :.. q,
..:., .:.._~:. Telenor . ._.:
_~:..._.
_., .:. - .~ . e .q.~_e _e .
~ . ~~ .:..q, ..: q ~ . ~
Apollo Towers . ....|...:
q~q._~~~ ~..._.:~~...:
_e..._~:. Telenor Myanmar .
~...:.._e.. Petter Furberg
~ ._.:_~:..._. ..,. ..
~.~~_~. ~..~._:q.:.
-. ...| .. . ..: . .:.._ Telenor
- ..,.~.. ~._...
~ , q~ .:.~:. ~..~.: .~: _.
. : . . ..: . .q.. ~. .~ ~ ._ .
_e_ ._ ..... ._ e e _~_ ._~: .
Furberg ~ ._.:_~:..._.
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
28
IT & TELECOM
Myanmar Summary
Facebook to Sell
Video Ads
Reed Albergotti, Ben Fritz and Suzanne Vranica
F
acebook Inc will begin selling video advertisements, accord-
ing to people familiar with the matter.
The ads, which will play automatically in users news feeds
may help Facebook capture a share of the $66.4 billion advertisers
are expected to spend on US television this year.
One oI LIe hrsL uds wIII be u sIorL Leuser - mude specIhcuIIy Ior
ucebook - Ior LIe upcomIng Ions GuLe EnLerLuInmenL Corp hIm
DIvergenL. L Isn`L known Iow muny oLIer compunIes wIII oer
ads in the early days.
The ads will play automatically in users feeds, the people familiar
with the matter said, regardless of whether users click on them.
How long they will be is unknown. In August, The Wall Street
JournuI reporLed ucebook pIunned Lo oer uds oI up Lo 1 seconds
on both smartphones and the Web.
Many advertisers had hoped Facebook would begin selling ads
in time for the holiday shopping season but Facebook delayed a
launch fearing ads could annoy users.
Some advertisers produced videos early in the year, anticipating a
summer rollout, and were frustrated when Facebook pushed back
the launch. Other advertisers worried ads might alienate users.
Facebook founder and Chief Executive Mark Zuckerberg took a
personal interest in the video ads and delayed their introduction
in part because of engineering problems that made them slow to
load. In August, the Journal reported Facebook software engineers
improved the back-end technology to speed up ads.
It isnt clear how much Facebook will charge advertisers but it is
likely to be expensive. Executives told The Wall Street Journal in
August Facebook planned to charge $2 million a day to let advertis-
ers reach the full Facebook audience of adults aged 18 to 54.
We expect video to be more expensive, said Dan Slagen, senior
vice president of marketing for Nanigans, a digital-marketing soft-
ware company. But were going to see advertisers willing to pay,
he said on Monday.
TIe deIuyed roIIouL couId prove prohLubIe Ior ucebook becuuse
this time of year advertisers can have excess money to spend.
Traditionally, Facebook hasnt been a go-to place for that money
and video ads will make it a more attractive destination, advertising
industry experts said. WSJ
Myanmar Summary
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~..|..,.~.. ,....q..: ...:.~._.:_~:..._e .q._.
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~. ~..:~ .e: _..... :.._ _e. _ . . ~. . _ . . .:.~.,_e ~. .|._~: _:.:.
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~.....q, ...._~:. .q._.
._~: _:. .:. ~.,_e Facebook ~:. ~:...q~...~e. ~:.~~~
._~:_:.:.~ .q:.. . :.q,..: . . _~..: ._ . Facebook ~.,_e
._~:_:.:. ._~: ~.._...:. .~~..: ~e~_e.._~ ..q..._~:
..: ..._~,_~:.q._.
Chinese Technology
Smuggler Sentenced to Three Years
Robert Boczkiewicz and
John Shiffman
A
Chinese citizen con-
victed of trying to smug-
gle American-made
radiation-hardened microchips
from California to China was
sentenced Wednesday last week
to three years in US prison.
Philip Chaohui He, the target
of a US Homeland Security
sting, was arrested in late 2011
at a port near Los Angeles as he
approached a Chinese freighter.
In his car trunk, agents found
200 radiation-hardened mi-
crochips hidden inside a tub of
baby formula.
US omcIuIs reporL u recenL
spIke In eorLs by LIe CIInese
government to obtain the spe-
cialised, American-made mi-
crochips, which are critical for
operating satellites and ballistic
missiles, as well as protecting
military hardware from solar
and nuclear radiation.
I love my adopted country
with all my heart, He said in
court last Wednesday. The
last thing I would do would be
to harm this country. Im sorry
beyond words.
Senior US District Court
Judge Wiley Y Daniel issued a
sentence that was about a year
less than prosecutors sought
and a year more than Hes
lawyer requested. The judge
said that although He bent
over backwards to avoid getting
caught, he had otherwise led a
productive life and had been a
model prisoner.
He was charged in Denver be-
cause he ordered the microchips
from a nearby manufacturer,
Aeroex oI CoIorudo SprIngs,
Colorado. In custody since De-
cember 2011, He pleaded guilty
in September to smuggling and
conspiracy to violate the Arms
Export Control Act.
US omcIuIs Iuve suId LIey
believe the microchips were
purchased on behalf of the
state-run Chinese space pro-
gram. He has said he believed
they were for commercial, not
government use. His motive
was monetary, not political, he
said.
Born in China, He moved to the
United States in the mid-1990s.
In April 2011, while working as
an engineer for the California
state transportation agency, He
used his side business to order
312 radiation-hardened micro-
cIIps Irom Aeroex.
It is legal to buy such sensitive
technology for domestic use,
but illegal to export it without
US government approval. Aero-
ex empIoyees Iound He`s Iurge
order suspicious and alerted
Homeland Security agents, who
initiated a sting.
AILer He senL Aeroex u
check for the full cost of the 312
microchips $549,654 un-
dercover agents delivered them
to Hes small company in Oak-
land. Although He was arrested
carrying 200 microchips, 112
remain missing. US authorities
believe those were successfully
smuggled to China. Reuters
United Nations Calls For End to
Excessive Electronic Spying
Aye Myat
T
he UN General Assembly
on Wednesday last week
called for an end to exces-
sive electronic surveillance and
expressed concern at the harm
such scrutiny, including spying
in foreign states and the mass
collection of personal data, may
have on human rights.
The call was included in a
resolution drafted by Germany
and Brazil which the 193-mem-
ber General Assembly adopted
by consensus, Reuters reported.
The United States, Britain,
Australia, Canada and New
Zealand known as the Five
Eyes surveillance alliance
supported the resolution after
language that had initially sug-
gested foreign spying could be
a human rights violation was
weakened to appease them.
The resolution does not name
specIhc counLrIes buL comes
after former US National Secu-
rity Agency contractor Edward
Snowden released details this
year of a global spying program
by the NSA, sparking interna-
tional outrage.
General Assembly resolu-
tions are non-binding, unlike
resolutions of the 15-nation
Security Council. But assembly
resolutions that enjoy broad
international support can carry
sIgnIhcunL moruI und poIILIcuI
weight.
After the resolution was
adopted last month by the
General Assemblys Third Com-
mittee, which deals with hu-
man rights issues, US delegate
Elizabeth Cousens told the
commILLee: We hrmIy beIIeve
that privacy rights and the right
to freedom of expression must
be respected both online and
omIne.
Cousens said it was impera-
tive that human rights and civil
society activists be able to use
the Internet freely and without
fear of reprisal to protect dig-
nILy, hgIL uguInsL repressIon,
and hold governments, includ-
ing mine, accountable.
The resolution notes that
while concerns about public
security may justify the gather-
ing and protection of certain
sensitive information, States
must ensure full compliance
with their obligations under in-
ternational human rights law.
Myanmar Summary
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AUTOMOBILE
29
December 26, 2013-January 1, 2014
Myanmar Summary
Myanmar Business Today
mmbiztoday.com
Mitsubishi Opens Mandalay Service Centre
J
apanese automaker
Mitsubishi has opened a
second after-sales service
centre in Mandalay in a bid to
grab a sizeable share of Myan-
mars burgeoning automobile
market.
Mitsubishi Motors Corp
Htet Aung (MMC), Mitsubishi Corp (MC),
and their local partners Yoma
Strategic Holdings Ltd (YSH)
and First Myanmar Investment
Co Ltd (FMI) have been working
on building a service structure
for inspection, maintenance,
and repair of Mitsubishi-
branded vehicles in Myanmar,
following Myanmars recent
deregulation of automobile
importation.
Many Mitsubishi-branded
vehicles are already common-
place in Myanmar, distributed
mainly through the countrys
used car market.
Mitsubishi said by establish-
ing the second after-sales ser-
vice centre, following the one
established in Yangon this May,
services for almost 80 percent
of Mitsubishi-branded vehicles
currently on the road in Myan-
mar will be covered.
The company said expanding
the after-sales service structure
using MMC know-how will
contribute to strengthening
MMCs brand image prior to
commencement of its new car
sales.
As part of initiatives towards
the Myanmar market, MMC
announced its intention in
October to start new car sales in
Myanmar.
Mitsubishi said MMC, MC,
YSH and FMI are under discus-
sions regarding establishment
of a joint venture for new
vehicle sales and after-sales
service in preparation for an
expected rapid development
and growth of the economy as
well as the automobile market
in Myanmar.
The companies are discussing
additional possibilities for mu-
tual cooperation in Myanmar
in the future, including local
production, Mitsubishi said.
A BMW 7 Series car.
P
A
C
BMW to Sponsor ASEAN Summit 2014
us Om ciul Limoosine
Up to 95 BMW premium limousines will service delegates
G
erman auto giant BMW,
jointly with its local part-
ner Prestige Automo-
biles, announced that it will be
sponsoring the ASEAN Summit
zo1q us LIe om cIuI ImousIne.
The ASEAN Summit will take
place in Myanmar as a two-part
event in May and November
next year.
A eeL oI up Lo q unILs
comprIsIng LIe ugsIIp BMW
7 Series, the BMW 5 Series
Executive Sedan and the pre-
mium BMW X5 Sports Activ-
ity Vehicle will be deployed to
cIuueur LIe ASEAN Ieuders
and delegates attending the
event, Prestige Automobiles,
BMWs authorised importer in
Myanmar, said.
As a local company, we want
to support all the initiatives for
the development of Myanmar.
After our parent company Oc-
tagon International Services co-
sponsored the 27
th
SEA Games
by providing transport service,
it is an honour to partner the
ASEAN Summit chaired by
Myanmar, said Chan Mya,
managing director of Prestige
Automobiles.
CIun Myu suId LIe co-eeL
sponsorship for the summit is a
part of the companys corporate
social responsibility policy. By
oerIng LIe besL quuIILy curs
Lo LIe Ieuders und om cIuIs,
Aye Myat we want to contribute to the
successful organising of this
summit and make the nation
proud.
He udded: BeIng LIe om cIuI
distributor of BMW in Myan-
mar We will do our utmost to
deliver a full BMW brand expe-
rience to all world leaders and
delegates. We will ensure they
ure cIuueured Lo LIeIr desLI-
nations safely, promptly, and in
the best possible condition.
Neil Fiorentinos, managing
director of BMW Group Asia,
said: We are very pleased to be
sponsoring the ASEAN Summit
for the third consecutive year.
As the worlds leading premium
automotive brand, we con-
stantly strive to maintain our
focus on excellence, innovation
as well as design, and this is evi-
dent in every BMW limousine.
This is what makes BMW a be-
hLLIng purLner Lo u presLIgIous
event like the ASEAN Summit.
TIe eeL wIII soon be uvuIIubIe
on sales and delivered after the
meetings, Prestige Automobiles
said.
Chaired by Myanmar for the
hrsL LIme, LIIs ASEAN SummIL
is a symbol of the new dynamic
the country has entered into.
L Is u reuI pIeusure Lo oer our
customers the unique opportu-
nity to own the prestigious cars
seated by the leaders on the
occasion. Our customers can be
proud to take part in this his-
torical event, Chan Mya said.
Prestige Automobiles Co
Ltd (PAC) is a subsidiary of
Octagon International Services
Co Ltd (OIS), which distributes
leading brands for machinery
and vehicles. OIS also imports
premium passenger buses as
well as heavy machineries such
as construction and mining
equipment, cranes and vehicles.
Incorporated in 2005, OIS
currently has a workforce of
over 600 personnel.
Myanmar Summary
Men walk in front of Mitsubishi Motors Corp's headquarters in Tokyo.
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(MMC), Mitsubishi Corp (MC)
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Ltd (YSH) . First Myanmar
Investment Co Ltd (FMI) ~._
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.,.,..|,~~: ...._.~ ._.:
_~:..._.
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
30
SOCIAL SCENES
31
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
Troy Grifths, deputy managing director of Savills, speaks at the launch.
Phyu Tit Lwin Savills delegates at the event. Phyu Tit Lwin
Troy Grifths gives a crest to Daw Soe Sint Win (R). Phyu Tit Lwin
Richard M Emerson, country manager of Savills Myanmar, pose for a
photo. Phyu Tit Lwin Tailand Optimist team celebrates afer clinching the gold medal.
Myanmar Yachting Federation
Coca-Cola Press Conference
Coca-Cola delegates at the press conference. Kyaw Min
Coca-Cola Myanmars Managing Director Rehan Khan at the press event.
Kyaw Min
A Coca-Cola delegate at the event. Kyaw Min
7 Days in Myanmar Book Launch Ceremony
A delegate speaks at the event. Phyu Tit Lwin
Veteran journalist Denis Gray who wrote an article for the book.
Phyu Tit Lwin Melissa Teo and Didier Miller, publisher of the book. Phyu Tit Lwin
A panel of delegates at the book launch. Phyu Tit Lwin
Delegates pose for a photo at the launch. Phyu Tit Lwin Myanmar Beer promotion at the event. Phyu Tit Lwin
Savills Myanmar Ofce Opening Ceremony
A Savills representative speaks at the press conference. Phyu Tit Lwin Savills representatives at the event. Phyu Tit Lwin
Optimist Team Class @ 27
th
SEA
Games Sailing Competition
Optimist Team Class. Myanmar Yachting Federation
Tailand and Singapore Optimist teams. Myanmar Yachting Federation
December 26, 2013-January 1, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
Before Myanmar became one
of the worlds most attractive
tourist destinations, many
visitors in the country stuck to
the tried and tested Big Four
places the lively former capital
of Yangon, the calm serenity of
Inle Lake, the history and Bud-
dhist culture of Mandalay and
the vast, temple-clad plains of
Bagan.
Even today, as Myanmar at-
tracts upwards of 1 million
foreign tourists a year, alter-
native destinations are little
known about. But look closely
and they are there. There is the
lush, abundant Karen state, the
mountainous temples of Kachin
and the Buddhist Disneyland
that is Bago. Little known
also are Myanmars beach
destinations.
Sitting on the countrys western
shore, near to the attractive Bay
of Bengal, and just a few hours
drive from Yangon, lies Ngwe
Saung a small, simple, but strik-
ing beach destination.
Translated as Silver Beech,
Su Su Ngwe Saungs beach is 15 kilo-
metres long, with white pristine
sand and faultless turquoise
water. During rainy season the
sea gets choppy, making it a dif-
hcuIL pIuce Lo swIm, buL In oLIer
times of the year, the warm
water is the perfect temperature
to relax in. As you relax there,
coconut palm trees swaying in
the wind, looking at the almost
empty beach, you quickly real-
ise that there are few places like
this elsewhere in the world.
There are few activity options at
the beach, but that hardly mat-
ters in such a pristine, beautiful
place. Along the beachs north-
ern end two quaint pagodas
Aureum Palace Resort & Spa: A Place to Stay
on a Weekend Getaway in Ngwe Saung
sit atop some rocks, while the
southern end is dominated by
Lovers Island a forest-dense,
beautiful island that lies a few
hundred metres from the shore.
When the tide is down, visitors
can walk to the tranquil spot.
Other options include snorke-
ling, and traveling around by
motorbike, but the real reason
you are here is to relax in such a
tranquil, beautiful spot.
Accommodation options are
reasonably limited too in
2013, Ngwe Saung had 16 hotels
operating 714 rooms.
However, one standout place
to stay is the Aureum Palace
Resort & Spa, Ngwe Saung. The
Aureum Palace brand operates
out of a range of destinations
around the country including
Bagan, Ngapali, Pyin Oo Lwin
and Nay Pyi Taw, and its high
runge oI IucIIILIes on oer LIe In
with the impressive reputation
that the brand has built around
the country.
The luxury resort at Ngwe
Saung is the largest property in
the area, with two-thousand feet
of beachfronts, which include
luxurious, spacious cottages up
Lo hve-sLur sLundurds.
Activities at the hotel include
vast facilities which include
an extensive spa facility, a
beachside swimming pool,
two restaurants, two bars, as
well as access to a nearby golf
course and a variety of leisure
activities.
The hotel can also provide
activities for guests, including
bouL und hsIIng LrIps, snorke-
ling trips, elephant camp visits
and cooking lessons, which also
include a visit to a local market.
Established seven years ago,
Aureum Palace Resort & Spa
Ngwe Saung houses 97 rooms,
one presidential suite with a
prIvuLe pooI, hve vIIIu execuLIve
complexes with separate swim-
ming pools and a beachside boat
bar, 55 spacious bungalows and
36 deluxe rooms.
The Aureum Palace Hotel
chain started in Bagan in 2005
and Ngapali, Ngwe Saung and
Pyin Oo Lwin in 2006, Nay Pyi
Taw in 2007 and Inle in 2011,
and it has more projects in the
pipeline.
The beachfront.
A
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r
e
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m
The swimming pool at the Aureum Palace Resort & Spa at Ngwe Saung.
A
u
r
e
u
m
A
u
r
e
u
m
Sunset at Ngwe Saung from the resort.