April 10-16, 2014

Myanmar Business Today

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Inside MBT
mmbiztoday.com April 10-16, 2014| Vol 2, Issue 15 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Myanmar Summary
Contd. P 12...(Public Finance) Contd. P 12...(Public Finance)
Contd. P 21...(IMF)) Contd. P 21...(IMF))
Myanmar Gets A Leg Up to
Revamp Public Finance System
Secures $55-m World Bank loan
Pann Nu
T
he government last
week received ap-
proval to a multi-
IuLeruI hnuncIng oI $
million to overhaul My-
unmur`s woeIuI pubIIc h-
nance system, donors of
LIe projecL suId.
The World Bank will
provIde u $o mIIIIon
credit from the Interna-
tional Development As-
sociation (IDA) for the
Modernization of Public
Finance Management
Project, while the Austral-
ian government and the
UKs Department for In-
ternational Development
(UKAD) wIII co-hnunce
the project through a
multi-donor trust fund
for Myanmar by provid-
Ing $8. mIIIIon und $16.
mIIIIon respecLIveIy.
The project aims to sup-
porL em cIenL, uccounLubIe
and responsive delivery
of public services through
the modernisation of My-
unmur`s pubIIc hnuncIuI
management systems, the
WorId Bunk suId.
The project will also
help strengthen revenue
administration, which is
expected to increase the
eecLIveness oI Lux und
non-tax revenue mobi-
IIsuLIon. ncreused rev-
enues in turn will create
hscuI spuce Ior IncreusIng
expenditure on public ser-
vices that will help reduce
poverty, the Washington-
bused Iender suId.
The bank said the pro-
ject will also improve
LIe em cIency oI pubIIc
service delivery through
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Growth Outlook Positive
bot Inution A Worry: IMI
Phyu Thit Lwin
T
he International
Monetary Fund
(IMF) last week
said Myanmars econom-
ic outlook is favourable
buL rIsIng InuLIon und
slim international reserve
pose a challenge to the
Southeast Asian nation
which initiated sweeping
economic reforms in the
IusL coupIe oI yeurs.
Myanmars real GDP
growLI In zo1zJ1 hs-
EmpIoyees count and pack money inside a bank in Yangon. IMF said inHation remains eIevated in Myan-
mar, and there are pressures from rapid money and credit growth and kyat depreciation.
M
in
z
a
y
a
r
/
R
e
u
t
e
r
s
cal year (year ending
In MurcI) reucIed ;.
percent, led by services,
and is expected to rise
IurLIer Lo ;. percenL In
Yzo1J1q und ;.; per-
cenL In zo1qJ1, LIe PurIs-
based lender said follow-
ing the completion of its
second und hnuI revIew oI
LIe SLu-MonILored Pro-
gram (SMP) with Myan-
mur. SMP Is un InIormuI
und exIbIe InsLrumenL
_ ., .:. -. . . :. .q. ~
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PowerIng Myunmur (PurL )..
P-7
Ericsson Bags Telenor Myan-
mur ConLrucL.. P-11
IFC Taps Myanmar Hotel
nIrusLrucLure.. P-zq
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
2
LOCAL BIZ
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Board of Editors
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Business News in Brief
Tani nthar yi plans 5 power plants despi te pr o-
tests
The regional government of Tanintharyi in southern
Myunmur Ius decIded Lo buIId hve couI-hred power
pIunLs, rungIng Irom o Lo z,6qo meguwuLLs, despILe
proLesLs by IocuI peopIe, u Lop governmenL om cIuI suId.
The projects will go ahead if the World Bank and the
Union Ministry of Electric Power approve the EIA and
SIA reports, Electrical and Industry Minister Win Swe
suId.
REE to enter Myanmar mar ket
Vietnams Refrigeration Electrical Engineering (REE)
Group is planning to enter the Myanmar market, Viet-
num EconomIc TImes reporLed. REE wIII Lup LIe souLI-
east Asian countrys market by joining a project devel-
oped by Vietnamese property giant Hoang Anh Gia Lai
(HAG), wIIcI Is buIIdIng u mussIve $oo-mIIIIon pro-
jecL In Yungon, uccordIng Lo LIe reporL.
Cr ui se shi p ar r i val i n Myanmar hi ts r ecor d
The number of cruise ships visiting Myanmar in the
hrsL LIree monLIs oI zo1q Ius surpussed LIe LoLuI urrIv-
uI In zo1, uccordIng Lo LIe Myunmur PorLs AuLIorILy.
A total of 11 ships came to the country six in Febru-
ury, hve In MurcI - wIIIe eIgIL cruIses wILI over q,ooo
pussengers vIsILed In zo1, LIe IIgIesL number In Len
yeurs. AnoLIer 1q cruIse sIIps pIun Lo vIsIL Myunmur
LIIs yeur.
Amar a Holdi ngs Ltd announces Myanmar
Company i ncor por ati on
SIngupore-bused IoLeI und properLy hrm Amuru
Holdings Ltd has incorporated a wholly owned group
subsidiary, Myanmar Central Investment Pte Ltd, in
SIngupore, LIe compuny suId. usL yeur Amuru suId IL
formed a JV with a local partner to develop hotels and
engage in other real estate projects in Myanmar, in-
cIudIng buIIdIng u $o-mIIIIon IoLeI.
I FC to help YESB go pr i vate
A new power generation project will be jointly im-
plemented by the World Banks private lending arm
International Finance Cooperation (IFC) and Yangon
City Electricity Supply Board (YESB), according to lo-
cuI medIu reporLs. TIe projecL uIms Lo LrunsIorm YESB
into a corporation and IFC is now conducting a survey
on electricity consumption, power charges and supply
sysLem In LIIs regurd. C wIII Iuve qq percenL sLuke In
the new entity and Myanmar government will hold the
resL. TIe Iender sIgned u conLrucL wILI Myunmur OrIen-
LuI Bunk (MOB) In ebruury Lo oer moneLury servIces
In Myunmur.
For ei gn i nvestment br i ngs over 150,000 j obs
Foreign investment in Myanmar has created more
LIun 1o,ooo jobs Ior Myunmur cILIzens, uccordIng
Lo LIe Myunmur nvesLmenL CommIssIon (MC). TIe
amount of foreign investment into Myanmar exceeded
$q bIIIIon In Junuury, uccordIng Lo LIe MInIsLry oI Nu-
LIonuI PIunnIng und EconomIc DeveIopmenL.
100 log tr ucks stuck i n por ts
AbouL 1oo Iog-Iuden Lrucks remuIn uL Yungon und
Thilawa ports after a country-wide deadline banning
ruw LImber exporLs, uccordIng Lo IocuI medIu reporLs.
TIe sIIppIng oI Iogs wus sLopped uL 11pm on MurcI 1
after the state-owned Myanmar Timber Enterprise de-
cIured u nuLIon-wIde bun on LImber exporLs.
Myanmar yi eldi ng oi l for I nter r a Resour ces
SIngupore`s nLerru Resources Ld. suId IL conhrmed
one oI ILs weIIs, CHK 118z, In LIe CIuuk oII heId In My-
unmur wus producIng oII Ior LIe compuny. CHK 118z
is the sixth well to be completed as an oil producer in
Myunmur In zo1q, nLerru suId. However, LIe hrm guve
no IndIcuLIon oI LIe reserve poLenLIuI uL LIe heId buL LIe
US Energy Information Administration said crude oil
production in Myanmar is minimal though increas-
Ing. Myunmur Is u neL oII ImporLer.
Myanmar Summary
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~~...._.~:~............:~~:.....~ ,
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-e~,..- Refrigeration Electrical Engineering (REE)
Group .__.,.:...~~.~.q:~q,_. . .,._~: . Viet-
nam Economic Times . .~..e:_..._.REE ._
- e~ ,. . -~ . _. ._.. . , ._~._e...: Hoang Anh Gia Lai
(HAGL)._ q, ~ , ~ ~..q ~, ..'.:., .,~~..:~q
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.:q, ~.~.q.,._~:.._. .q._. . ~:. ~._.. ~ e
~e . ~ . _. ._. . . , ._e. ..: Amara Holdings Ltd ._
Myanmar Central Investment Pte Ltd . ..,.....|.._._e.
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~,..:.~:...:q~q,~~~ _._~.. . , .~. . . ._ . ~
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
3
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
Myanmar Summary
Myanmar Summary
Myanma Petrochemical
Invites Foreign Investors to
Operate LPG Plant
Kyaw Min
M
yanmars state-owned
Myanma Petrochemi-
cal Enterprise (MPE)
under the Ministry of Energy
has invited letters of expression
of interest (LEI) from foreign
InvesLors Lo operuLe ILs IIquehed
petroleum gas plant at Nyaung
Don on a joint-venture basis,
according to an announcement
in state-run New Light of My-
unmur.
The last date for submission
oI E Is Muy 1.
MPE said in intends to im-
plement joint venture between
MPE and interested foreign in-
vestors who have the ability in
terms of worldwide experiences
in LPG production, storage, dis-
tribution, marketing and servic-
es, hnuncIuI cupucILy, reIIubIIILy
for long term cooperation with
respect to business expansion
and enhancing the existing fa-
cIIILIesJcupucILIes Ior produc-
tion, storage, distribution and
marketing to operate the LPG
pIunL.
However, MPE said no tel-
ephone enquiries shall be al-
lowed with regards to getting
further information, which has
to be obtained physically at the
MPEs Planning Department in
Nuy PyI Tuw.
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Mann Yadanarpon to Extend
Domestic Routes
Pann Nu
M
yanmars newest pri-
vate airline Mann
Yadanarpon will ex-
Lend ILs wIngs Lo hve more do-
mestic routes with its newly
purchased second aircraft, a top
compuny omcIuI suId.
Mandalay-based Mann Yadan-
arpon, the countrys ninth do-
mestic airlines, will add Myit-
kyina, Lashio, Dawei, Myeik,
Sittway and Kawthoung as its
new destinations, U Kyaw Myo,
CEO oI Munn Yudunurpon, suId.
TIe new ;8-seuLer ATR;z-
6oo, purcIused Irom rencI-
Italian airplane manufacturer
Avions de transport rgional
(ATR), arrived from France last
week, LIe compuny suId.
To serve the growing num-
ber of passengers we have
purchased another plane and
we will expand our schedules
more, said U Kyaw Myo, CEO
oI Munn Yudunurpon.
TIe uIrIIne currenLIy Ies Lo
Yangon, NyaungU, Mandalay,
Heho, Kengtung and Tachileik
wILI LIe hrsL ATR ;z-6oo LIuL
urrIved In ebruury.
U Kyaw Myo said the domes-
tic carrier will buy one Airbus
Azo pIune und expund Lo In-
ternational routes within three
yeurs.
In addition to its scheduled
domesLIc IgILs, LIe uIrcruIL
will also serve as a chartered
IgIL Ior domesLIc und regIonuI
desLInuLIons, Ie suId.
U Kyaw Myo said delivery of
unoLIer ATR;z-6oo uIrcruIL by
OcLober Is In LIe pIpeIIne.
Myanmar Investment Com-
mission granted domestic and
InLernuLIonuI IgIL operuLIon
licence to Mann Yadanarpon on
Junuury z;.
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_..... ~ee:...: .~e
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e: .. _e .~ q . ., .._... .,..:
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Airbus A 320 ..e:.:._e _._
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_.... Avions de Transport
Regional ~ . ~ . .,:~ . ...' ~ . .
:...: .q .._ . ,. .. Turbo-
prop..e: ~ ., .q~,:. ..._~: .
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_., .:. -~ .. ._.:~ ..._~: .. .
_e. _. .., .q~,:. ..._~: .. .-
.q .. ~.~ .:..e: _.q, International
Air Transport Association ~..
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An IPC pIant site in Myanmar.
C
M
C
Mann Yadanarpon's ATR72-UU aircraft.
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
CIL Sets up Myanmar Factory as
Govt Bans Raw Timber Exports
Wai Linn Kyaw
S
ingapore-based wood
processIng hrm Con-
corde Industries Ltd
(CIL) has launched its saw
milling facility in Yangon
last week, the company
suId.
The move comes as
Myanmar authorities
suspended unprocessed
log export starting last
Tuesday to protect the
countrys rapidly decay-
ing forest reserves and
biodiversity, mainly due
Lo rumpunL IIIeguI IoggIng.
Philippe Maudet, gen-
eral manager of CIL, said
this move from being an
FOB player in the teak
Iogs Lrude ow Lo InvesL-
ing in processing facilities
in Myanmar would en-
able CIL to better service
the growing demand for
LruceubIe und cerLIhed
lumber in the developed
economIes.
TIe hnIsIed wood Iuc-
tory will process about
1o,ooo Lonnes oI wood
annually, said CIL, which
wus esLubIIsIed us u 1oo
percent foreign-invested
compuny. TIe compuny
Ius empIoyed over zoo
sLu members und wIII
export its products to the
European countries, it
suId.
nvesLIng In hnIsIed
woods factory gives My-
anmar a chance to ex-
porL, MuudeL suId. TIe
saw mill investment is
a step in the implemen-
tation of the companys
strategy to participate
with Myanma Timber
Enterprise and Myanmar
government in promoting
growth and development
oI Myunmur`s cerLIhed
Iumber secLor, Ie suId.
Maudet said CIL would
be working closely with
the Ministry of Environ-
mental Conservation And
Forests (MOECAF) on
receiving recommenda-
tions from international
timber organisations after
a group of experts includ-
ing forestry management
omcIuIs Is Iormed.
At the commissioning
of the saw milling facility,
U Win Tun, union min-
ister for environmental
conservation and forests,
said Myanmar wants to
establish more timber fac-
LorIes.
License validity for saw
mill and plywood as well
as for wood-based mills
has been extended from
one yeur Lo hve yeurs
sInce zo1, uccordIng Lo
LIe mInIsLry.
The government en-
courages wood-based in-
dustries because it plans
to stop the export of big
timber logs, Than Swe,
advisor to CIL, told state-
run medIu.
GovernmenL omcIuIs
said this is a good devel-
opment for wood-based
industries entrepreneurs
as Myanmars export of
value-added products
would bring about higher
income, technical trans-
fer and more employment
opporLunILIes.
Meanwhile, the govern-
ment stopped exports of
raw logs last week in a bid
to ensure sustainable uti-
lisation of forest reserves
and enhance environ-
mental conservation and
the countrys biodiversity,
MOECA omcIuIs suId.
ExporLIng onIy hnIsIed
or semI-hnIsIed wood
products helps upgrade
production technology
and bring business op-
portunities for the local
peopIe, LIey suId.
AccordIng Lo omcIuI sLu-
tistics, Myanmar export-
ed q8,6oo cubIc Lonnes
oI Leuk Iog und ;zq,zoo
cubic tons of hardwood
Iog In zo1z-1, eurn-
Ing $z;. mIIIIon und
$zoq.8 mIIIIon respec-
LIveIy.
Suspension of log ex-
port would reduce teak
and timber production
compared with the past,
U Tin Tun, director gen-
eral of the ministry, told
XInIuu news ugency.
n LIIs hscuI yeur zo1q-
1, onIy 6o,ooo cubIc
Lonnes oI Leuk und 6;,ooo
cubic tonnes of timber
are expected to be pro-
duced, down from about
zoo,ooo cubIc Lonnes oI
Leuk und 1.z mIIIIon cubIc
tonnes of timber annually
In LIe pusL severuI hscuI
yeurs up Lo zo1z-1, Ie
suId.
He said Myanmars for-
esL coveruge reucIed ;
percent of the countrys
LoLuI ureu beLween 1q8o
und 1qqo, buL dropped Lo
q; percenL recenLIy.
. ~:. ~._.. ~ Concorde
Industries Ltd (CIL) ._
.,.._~.~~ ....~,
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~. .|~ . ~ . ._.:_~:.. ._ .
...:.~:. ~...~~..
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~:. ..: q ~ .:_. ._e. ._ .
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..,.,:_e.. Philippe
Maudet ~ e. ~ . .. ~. .
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._.: ..q..._..._..~:._e
CIL ~.,_e ...~:..,
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.._.
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~ , .:.~:. .q:.. .:.. ~
..:.._e CIL . ._.:_~:..
._.
U Win Tun, union minister for environmentaI conservation and forests, inaugurates Concorde Industries
Itd's new pIant in Yangon.
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Myanmar Summary
Myanmar Summary
Thui Oil Wunts to Boild
Lurge Renery in Myunmur
Yasumasa Hisada
A
new oII rehnery LIuL TIuI
Oil Pcl wants to build in
Myanmar would have
u cupucILy oI 1o,ooo burreIs-
per-duy, TIuIIund`s Lop rehner
suId.
TIuL wouId muke IL LIe hrsL
such large-scale facility con-
structed in several decades in
the country as it opens up to in-
vestment after a quasi-civilian
governmenL Look omce In zo11.
The company will propose
LIe rehnery us purL oI u bId Lo
win a deal to upgrade two state-
owned rehnerIes In LIe souLI oI
Yangon, with capacity of about
zo,ooo bpd eucI, cIIeI execu-
LIve omcer Veerusuk KosILu-
paisal said after a shareholder
meeLIng IusL week.
We will propose the new re-
hnery pIun LogeLIer wILI LIe
upgrade plans to the Myanmar
government, Veerasak said,
without giving details on cost or
IocuLIon.
Thai media previously report-
ed LIe hrm wunLed Lo consLrucL
u rehnery In ILs neIgIbour, buL
details on the size were not in-
cIuded.
As part of its Southeast Asian
expansion, Thai Oil is also keen
to join with Indonesian state
oII hrm PerLumInu Lo InvesL In
wax production in that country,
Veerusuk suId.
Its shareholders also ap-
proved u pIun Lo seII up Lo $oo
million in bonds to fund future
InvesLmenL, Ie suId.
TIe rehner, wIIcI recenLIy ex-
panded into the solvent chemi-
cal business in Vietnam, aims
Lo InvesL $oo-$oo mIIIIon u
yeur over LIe nexL LIree yeurs.
BottIes of Pepsi coIa are seen in a dispIay.
Pepsi Opens Myanmar Bottling Plant
Aye Myat
P
epsiCo Inc and
Lotte-MGS Bever-
age (Myanmar) Co,
the companys bottler in
Myanmar, said the US
beverage giant will be lo-
cally producing its Pepsi-
Cola in the country for the
hrsL LIme sInce ceusIng
producLIon In 1qq;.
Myanmar consumers
can now enjoy locally-
manufactured Pepsi-Cola
In oo-mI reLurnubIe
glass bottles, with plans
to expand into aluminium
cans and other package
formats in the coming
weeks, PepsiCo said in a
sLuLemenL.
Mansoor Ali, general
manager, PepsiCo My-
anmar, said: The open-
ing of this bottling plant
represents an important
mIIesLone In our journey.
Ali said Myanmar is a
market with great poten-
tial and Pepsi continues
to take steps to build our
business while also play-
ing a constructive role in
Myanmars ongoing de-
veIopmenL.
PepsiCo re-entered My-
unmur In zo1z vIu u purL-
nership with Diamond
Star, a local distributor,
before teaming up with
LOTTE-MGS this year to
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....q,.~..,.~.._e.
._ Thai Oil Pcl ._ _., .:.
~ ~. ., . .q, ._ ..| . ~~,~~~
~ . . . ._ .q, .~ . . , .~:.
~_ .: ..: q ~ . :.. .,._~: .
.. - . ~, ..q, .~ . . , ._~ .
_e.._ Thai Oil Pcl . ._~_:.
._ .e. . . , .~:. ~_ .: ..:
q ~ _e. . .|~ .e . . . ~. . .~: ~~ .
_.,.:.~ .....~_~.~_e.
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._.._e.._~:.._. .q._.
q,~,_..~:~q ...q,
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._..|. ~~~~ ~ ~...
._ ~ ~. _. ~ q, ~~ ~
..:~ _ . qq q, . . , .~. _.
..:~:..:..__e.._~:. ~.
..:.. Veerasak Kositapaisal
~ .,.._~.~~ _......:
qee:q.:..~........~_.._
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~._. ~._.~...:..__e.
._~: . Veerasak ~ ._.:_~:.. ._ .
locally manufacture its
beveruge producLs.
Byoung Tak Hur, man-
aging director, Lotte-
MGS, said the company
is investing to build a
world-class manufactur-
ing and distribution sys-
tem to support the future
expansion of our busi-
ness.
Developing and emerg-
ing markets have account-
ed Ior percenL oI Pep-
sICo`s revenue In zo1, und
it aims to tap Myanmars
frontier market, which has
strong growth potential
and a population of about
6o mIIIIon.
PepsiCos portfolio
comprises 22 brands in-
cluding Quaker, Tropi-
cana, Gatorade, Frito-Lay
and its net revenues stand
uL more LIun $6 bIIIIon.
oLLe Group Is LIe hILI
largest conglomerate in
Koreu und recorded zo1
revenues oI $;6 bIIIIon.
PepsiCo has a long-
standing business rela-
tionship with the Lotte
group of Korea, a multi-
national food and retail
conglomerate, and has
worked closely with the
company in Korea since
1q;6 und In LIe PIIIIp-
pInes sInce zo1o.
~..q ~, . -~. q_
. . , ._~ ._e...: Pepsi ._
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.:.._e PepsiCo Inc .
L otte-MGS Beverage
(Myanmar) Co ~ ~ ._.:_~:.
.._.
e. ~.| _., .:. . .:.. ..
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e,..._e ......~_.
. ..:.. .:.~~_.:. ~ . .
....:._e ._ . ~ . . . :.
._ e Pepsi ~ . ~ ~ ._~_:
. ._..~ .,.~.: ~ . .
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. ~ ~ ~. . . _ e. ._~: .
Pepsi ~.,_e ._ ._., .:.
-.~ q e _e .~.~~.~ ~
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~ ~_ .: . :.q,~~~._.
. . ..~: ..:.~ .~ .~
..:~ . . .. :.._ e Ali
~ ._.:_~:.. ._ .
Workers waIk at an oiI renery.
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Myanmar Summary
Contd. P 8...(Powering Myanmar) Contd. P 8...(Powering Myanmar)
Powering Myunmur {Purt II): Investors Wutch
Closely as Government Cautiously Cuts Subsidies
Te second part of Breaking Energys series on Myanmars power sector takes a look at the pricing structure and future demand projections.
Kate Rosow Chrisman
T
he government in
Myanmar is show-
ing resolve: just
months after backing
down over price hikes to
electricity, the issue is
buck on LIe LubIe. usL
month, in a move many
expected only after next
years elections, Myan-
mars parliament ap-
proved u new bIock LurI
scheme for households
und IndusLry. TIe prIce
hike should stem some of
the governments haem-
orrhaging from massive
subsidies to the power
sector, but prices will re-
main under production
costs, according to ex-
perLs.
In Myanmar, just like
many other parts of the
world, electricity pricing
is as much about politics
us IL Is ubouL economIcs.
Until the government gets
the politics right, experts
warn that the countrys
electricity costs will con-
LInue Lo sLIe economIc
growLI.
The str uctur e
Turning on the lights in
Myanmar falls heavily on
the government it was
desIgned LIuL wuy. TIe
countrys power sector is
based on a state-owned
sIngIe buyer modeI. Un-
der the Myanmar Elec-
tric Power Enterprise
(MEPE), the government
buys electricity from pub-
IIc und prIvuLe producers.
MEPE sells that electricity
to two entities: the Elec-
tricity Supply Enterprise
(ESE) and the Yangon
Electricity Supply Board
(YESB). TIe MInIsLry oI
Electric Power (MOEP)
oversees the transmission
und dIsLrIbuLIon.
An oordohle price
The adage is buy low and
sell high, but as if some-
thing was lost in trans-
lation, Myanmar does
LIe opposILe. WIen LIe
government announced
price hikes last fall, many
commentators saw it as
the beginning of a transi-
tion to more stable output
and an impetus for power
producers to increase do-
mesLIc cupucILy. BuL once
that increase was revoked
after protests, analysts
warned that investors
might be scared away for
LIe LIme beIng. L`s Loo
early to tell what impact
this latest hike in tar-
Is wIII Iuve, buL eurIIer
commentary indicates it
doesnt go far enough
in solving the countrys
probIems. SLIII, un Incre-
mental and phased ap-
proach to higher prices
may be the only way con-
sumers will accept the
heavier burden, accord-
ing to Vikas Sharma, an
associate director at Frost
& SuIIIvun In SIngupore.
Indeed, the best solution
is the one that works in
LIe reuI worId.
Even with the higher
ruLes pussed on MurcI 1q,
prices are below where
the market would indi-
cuLe. EsLImuLes Ior pro-
duction costs vary, with
hydropower the cheap-
est, but some experts put
production costs as high
us K1zJkWI (uImosL
$o.1JkWI), ubove LIe
old and most of the new
LurIs. TIuL meuns LIe
government will still have
Lo subsIdIse cosLs. NomILu
Nair, a Singapore-based
attorney with extensive
energy and Myanmar ex-
perience asks about the
government: What hap-
pens when they go bust
or cant meet demand?
L`s u vuIId quesLIon. I LIe
government can no long-
er subsidise energy, what
will happen to production
levels and how will the
populace react?
The price hike will push
IouseIoId LurIs up by 1q
Lo o percenL, dependIng
on LIe umounL oI usuge.
Commercial fees will stay
LIe sume Ior 6o percenL oI
companies, but for larger
users (dehned us consum-
Ing more LIun oo unILs u
month), prices will dou-
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CandIes are seen in front of a sign from the Yangon Bivision EIectricity Bistribution ofce during a pro-
test against the government`s decision to increase the prices for eIectricity in Yangon.
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From page ;...(Powering Myanmar)
From page ;...(Powering Myanmar)
bIe. ExperLs LeII BreukIng
Energy that prices should
rIse Lo beLween 1o und 1
cents from around three
cents now, but the new
IIke onIy ruIses LurIs by
one Lo Lwo cenLs. SLIII, LIe
new LurIs ure weIcome
news, according to De-
jan Dostojic, leader of the
World Bank team on My-
anmars electricity power
projecL und wIII sIgnIh-
cantly reduce the budget
supporL oI LIe secLor.
Looking back, an exam-
pIe Irom OcLober zo1z
highlights the enormous
subsidies and unsustain-
ubIIILy oI LIe progrum. AL
that time, the government
bougIL eIecLrIcILy uL K8o
per kWh (approximately
$o.o8JkWI) wIIIe seIIIng
IL Lo IouseIoIds uL K
or o per kWI ($o.o-
o.oJkWI). ndusLry wus
cIurged K; per kWI buL
consumes sIgnIhcunLIy
Iess LIun IouseIoIds.
TIuL`s u Ioss oI K-q per
kWI. And wIIIe Myunmur
Is sILLIng on sIgnIhcunL
natural gas resources,
this is not Saudi Arabia or
unoLIer sLuLe usI wILI
cusI. NuIr summed IL up
by saying like many oth-
er resource rich countries,
they are still electricity
poor.
Compared to its neigh-
bours, Myanmar has
some of the lowest elec-
LrIcILy LurIs In AsIu. TIIs
has led to a huge subsidy,
which the government
puLs uL K18 bIIIIon (up-
proxImuLeIy $1q1 mIIIIon)
a year, though this should
sIrInk sIgnIhcunLIy wILI
LIe new LurIs. WILI prIc-
es below costs, producers
cannot expand production
to keep up with growth in
demand or electrify the
enLIre counLry. Remem-
ber, connectivity rates
are abysmally low, with
esLImuLes beLween zo-o
percenL. ow prIces uIso
deter IPPs from entering
LIe murkeL, suy experLs.
Even still, foreign compa-
nies are lining up for new
projecLs. On LIe secLor,
Dostojic told Breaking
Energy, there is no lack
oI InLeresL In Myunmur.
While price increases
may lead to widespread
protests (like the backlash
uguInsL LIe IIkes In zo1),
the government needs to
hold its nerve, and pri-
orILIse Iong-Lerm benehLs
over short-term populist
pressures, Vikas Sharma
suId.
For those without ac-
cess, a diesel-powered
generator is an expensive
but reliable option: oper-
ating costs are as high as
$o.oJkWI. or u coun-
try so desperate for elec-
tricity, its not surpris-
ing that diesel fuel is one
of the most commonly
smuggled imports, ac-
cording to the US govern-
ments report on doing
busIness In Burmu.
Quanti fyi ng demand
If its neighbour China
can be said to run on coal,
Myanmar runs on bio-
muss. AImosL Lwo-LIIrds
of primary energy in My-
anmar comes from wood,
charcoal, agriculture resi-
due und unImuI wusLe.
This highlights the scope
of work the government
has to transition its pop-
uIuLIon oI 6o mIIIIon -
mainly rural away from
burning wood and ma-
nure to using hydropow-
er, natural gas, coal and
renewubIes Ior energy.
The government is eye-
ing increased production,
buL IL wIII be dImcuIL Lo
geL LIere. Poor dIsLrIbu-
tion systems coupled
wILI InemcIenL pIunLs
and hydropower sta-
tions far removed from
demand centres have
all complicated Nay Pyi
Tuw`s eorLs Lo Increuse
producLIon. n IucL, LIe
government used to con-
trol all generation capac-
ity, but local anger over
the situation prompted
the state to allow private
producers into the market
a few years back, accord-
ing to a report by Subha
KrIsInun.
n zo1z, II uII power-
generating plants were
operating at full capac-
ity, Myanmar should
have produced close to
q,1ooGWI. BuL LIe
country generated just
1o,8ooGWI, uccordIng Lo
SIurmu. As IIs unuIysIs
demonstrates, its not just
a matter of increasing ca-
pucILy. EmcIency, poorIy
maintained plants, a lack
of water, transmission
losses and load shedding
ure uII sIgnIhcunL ureus
LIuL musL be uddressed.
With GDP projected
Lo grow uround 6-8 per-
cent annually (and some
enthusiastic estimates
show GDP quadrupling
by zoo), LIe counLry`s
electricity demand is set
Lo skyrockeL. Beyond In-
creasing capacity, the
government has indicated
IL wunLs o percenL oI LIe
population connected by
zozo-zoz. TIe WorId
Bank is working with the
government to achieve
unIversuI uccess by zoo.
While the connectivity
rate is abysmal it has
grown Irom jusL 16 per-
cenL In zoo6 - eIecLrIcILy
producLIon grew 1q.; per-
cent annually for the past
Iour yeurs.
The governments low
growth scenario shows
demand doubling every
Len yeurs. BuL more re-
alistic projections show
demund growIng uL 1.-
2 times the rate of GDP,
ImpIyIng q-1q percenL
unnuuI growLI. n zo11,
the country generated
1,1ooMW buL demund
wus 1,MW, sIowIng
a huge gap and resulting
In Ioud sIeddIng. Even
if output doubled every
hve yeurs, IL wouId Luke
hve yeurs Lo meeL Loduy`s
needs. DurIng LIuL pe-
riod, demand would have
grown 12 percent, accord-
ing to the World Econom-
Ic orum.
Despite the problems
associated with the coun-
trys hydropower supply,
Myunmur Ius IdenLIhed
oo poLenLIuI Iydropower
stations with a combined
cupucILy oI q6,1MW. OI
LIese, 6o IdenLIhed sILes
would each have pro-
duction capacity above
oMW, provIdIng u LoLuI
oI q,zqMW.
While exporting natural
gas, mostly to neighbours
Thailand and China, only
about half of the countrys
gus demunds ure meL. n
recent years, natural gas
uccounLed Ior qo percenL
of total exports, showing
how much the country
relies on the fuel for eco-
nomIc growLI. PIuns Lo
increase domestic output
are in the works but these
ure yeurs o, uccordIng
Lo experLs. AccordIng Lo
Nair, the government
hinted that oil and gas
tenders under review now
would prioritise domestic
use.
With higher prices and
a surging demand struc-
ture, Myanmar desper-
ately needs to encourage
IPPs to build additional
cupucILy.
This article is the sec-
ond of a series in Break-
ing Energy on Myan-
mars power sector. It
was originally published
in Breaking Energys
website and has been re-
published with the publi-
cations permission. The
jncl pcrt, uhich uill be
published in Myanmar
Business Today next
ueel, uill shed liht on
independent power pro-
ducers (IPPs) and foreign
direct investment (FDI)
in Myanmars power sec-
tor.
Illegal Chinese Logging Threatens
Rare Myanmar Monkeys
Wai Linn Kyaw
I
llegal Chinese logging and
hunting are threatening an
endangered monkey species
in Myanmars northern Kachin
state, a conservation body said
IusL week.
UK-based Fauna & Flora In-
ternational (FFI) said hunting
for food and traditional medi-
cine, as well as accelerated de-
forestation caused by illegal
Chinese logging are the main
threats for the Myanmar snub-
nosed monkeys.
The species is listed as Criti-
cally Endangered on the IUCN
Red List, with only an esti-
muLed z6o Lo o IndIvIduuIs
survIvIng In LIe wIId. DIscov-
ered In zo1o, LIe rure prImuLe
remained elusive until FFI said
last week that it was also able to
cupLure LIe worId`s hrsL vIdeo
IooLuge oI LIe specIes.
Since the discovery, FFI has
started a community-based
conservation programme in
Myanmar, which provides al-
ternative livelihoods to local
indigenous hunters and oper-
ates a community ranger pro-
grumme Lo proLecL LIe specIes.
FFI said this has already had
u sIgnIhcunL ImpucL on reducIng
LIe IunLIng pressure.
However, Chinese illegal log-
ging continues to threaten the
specIes` survIvuI. Due Lo recenL
urmed conIcLs LIIs remoLe
border remains largely outside
of state control and Chinese log-
ging roads continue to scar the
HImuIuyun mounLuIn runges.
FFI said the pending gazette-
ment of the new Imawbum Na-
tional Park in Kachin where
urmed conIcLs Iuve ceused
recently due to the ongoing
peace negotiation process will
improve the species chance of
survIvuI.
Frank Momberg, FFIs Myan-
mar Programme Director, said:
Iope LIe omcIuI NuLIonuI
Park designation will make the
dialogue with Chinese authori-
ties easier to stop illegal trans-
boundury IoggIng.
Myanmar Summary
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.:.._~:_e. ..'.:._ ~~.
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..: ._ . e. ~_~ _..~e, .
.:. ~ . ~ . _. . . :._ .
_..,:~:. ._eq.q,~~~
....:~._~:. .q._.
_., .:. -._.:~ . . ~. _._ ,e
~ ~,~.- ~q:..~..~
.... ~..~..:.._ q:..|.
..:~ . .. .:.~:. . .. ...:~ ~ e
. :.... ._ _. . .._.:~ . ~. . ~_e.
q .,._~: . _- ~ , ~._.. ~ Fauna&
Flora International (FFI) . ._.:
_~:..._.
~.:.~..:~.~.q.....:.
~~ ~ ~. . ~ . .:.~_. ~, ~ .
- ~q:.~ .. ~ . . . . :.._
...~:_.,.~..~ ..~:.....,_..
_.,.:.q.:..|.~..:~.:.~:.
_. . .._.:~ .,._~: . e .~e ~._ ..
._.:_~:..._.
In Myanmar, just like many other
parts of the world, electricity
pricing is as much about
politics as it is about economics.
A Myanmar snub-nosed monkey.
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9
Myanmar Summary
Myanmar Summary
Mitsubishi Electric to Open Yangon Branch
Shein Thu Aung
M
itsubishi Electric Corp
said its Singapore-
based subsidiary, Mit-
subishi Electric Asia Pte Ltd,
wIII esLubIIsI u bruncI omce In
Yungon.
The Japanese electronics gi-
unL suId LIe new omce, wIIcI
will start operations on April
z, wIII coordInuLe MILsubIsII
EIecLrIc`s eorLs Lo expund busI-
ness in Myanmar by conducting
market research, collecting in-
formation and providing sup-
port for infrastructure projects
und IocuI dIsLrIbuLors.
TIe omce, Ieuded by GeneruI
Manager Kohji Maruyama, will
be located at Union Business
CenLre on NuL Muuk roud.
Foreign investment for the
development of infrastructure
and special economic zones is
accelerating in Myanmar due
to democratisation and eco-
nomIc reIorms In recenL yeurs.
The countrys consumer market
also has strong growth potential
over LIe medIum Lo Iong Lerm.
Mitsubishi Electric for many
years in Myanmar has been
selling products and services,
mainly in the power sector, for
infrastructure development,
beginning with its supply of
transformers for a hydroelectric
power pIunL In 1q6o.
The company also has been
supplying residential and com-
mercial air-conditioning sys-
tems, home appliances includ-
ing refrigerators and electric
fans, factory-automation prod-
ucts, elevators and escalators
through distributors since the
1qqos.
Mitsubishi Electric recorded
suIes oI $;.q bIIIIon In LIe hs-
cuI yeur ended MurcI 1, zo1.
Mitsubishi Electric Corp ~ . ~
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_e.._ Mitsubishi Electric Asia
Pte Ltd ~:. q,~,_.~ ,..~..
~ e . . ~_ .: . :.._ _e. ._~: .
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_~._e.._ Mitsubishi ._ e.
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. :.._ _e. ._~:. .q._.
Phyu THit Lwin
T
he Ministry of Electric
Power has invited open
tenders for the design
and supply of Galvanized Steel
Towers for the Taung Twin Gyi
- SIwe Tuung zokV doubIe
circuit transmission line, it said
In un unnouncemenL.
The currency of the bid will be
US dollar and quoting plan is
C Yungon, LIe mInIsLry suId.
The ministry said it has al-
located funds to be used toward
the cost of various projects,
and it intends to apply a por-
tion of the proceeds of these
funds to eligible payments un-
der LIe conLrucL.
Applications should be sub-
mitted to the ministrys Materi-
al Planning department by 2pm
on Muy 1. urLIer InIormuLIon
can be obtained by phone at
+q(o)6;-q1oz16 beLwee 1oum
Lo :opm.
The ministrys another sub-
sidiary, Electricity Supply En-
terprise, also invited tenders to
purchase utility poles that will
be used In zokV doubIe-cIrcuIL
line across Taung Twin Gyi to
SIwe Tuung.
Tender forms went on sale
MEP Calls Electricity
Transmission Tower Tenders
Irom MurcI 1 uL LIe MuLe-
rial Planning department of
LIe mInIsLry. TIe deudIIne Ior
tender submission is by 12pm
on Muy o. urLIer InIormu-
tion can be obtained by phone
uL +q(o)6;-q1ozoq, +q(o)6;-
q1oz8z.
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Myanmar Summary
Myunmur' s Inergy Sector:
Inviting The World to Its Shore
Vibhanshu Shekhar
I
n a bid to bolster the coun-
Lry`s eorLs Lo open up Lo
the world, Myanmar, on
MurcI z6, InvILed 1 oII compu-
nies from all over the world to
operate in oil and gas explora-
LIons In zo osIore bIocs o LIe
coast of Myanmar in the Bay of
Bengal, Moattama gulf and the
TunInLIuryI BusIn.
Ten of these are shallow water
drilling projects, and the rest,
deepwuLer drIIIIng projecLs. n
AprII zo1, LIe governmenL oI
Myunmur Iud ouLed LIe Len-
der Ior o osIore bIocs und
pre-upproved 6o proposuIs In
JuIy zo1.
The recent announcement
comes at a critical time when
the country is somewhat suc-
cessfully delivering on its ASE-
AN Chairmanship, gradually
drifting towards federalism as
a founding basis of Myanmar
as a nation-state, and emerging
as one of the important invest-
ment destinations in Southeast
AsIu.
Signipconce of the
announcement
First, these concessions ex-
pand the scope for major market
players to enter Myanmars en-
ergy secLor. Mujor InLernuLIonuI
oil businesses Total, Royal
Dutch Shell, Chevron, Unocal,
ConocoPhillips, and Reliance
Industries, among others will
participate in exploration and
producLIon operuLIons. WIIIe
previous explorations and mar-
keLIng were conhned prImurIIy
to Asian oil companies, these
new concessions involve major
oII busInesses Irom LIe WesL.
This will give a much-needed
boost to Myanmars interna-
tional attractiveness and its in-
vesLmenL cIImuLe.
Second, the consequent entry
of major market players would
bring in investment and tech-
nology two components im-
portant for the development
of Myanmars negligible infra-
sLrucLure und overuII economy.
WILI LIe predIcLIon oI 6-; per
cent growth in annual GDP in
the short to medium term, such
Inow oI D und udvunced
technology may give a major
boost to Myanmars economy,
and the modernisation of its
porL InIrusLrucLure. TIIs cun
further help its developing the
countrys coastal areas as busi-
ness Iubs. n zo1 uIone, My-
unmur receIved over $q bIIIIon
investment, with a bulk of it
owIng prImurIIy Irom AsIun
businesses in real estate, con-
struction and energy infrastruc-
Lure.
Third, this will give a major
boost to both the upstream and
downstream industries along
LIe counLry`s cousLIIne. TIe de-
velopment of industries along
the coast may lead to the mod-
ernisation of the southern cit-
ies, further integrating Myan-
mur wILI LIe gIobuIIsed worId.
Fourth, this will accelerate
LIe mucI -needed hnuncIuI
and banking sector reforms in
Myunmur. TIougI Myunmur`s
hnuncIuI secLor Ius seen some
improvements over the past
two years, it still remains rudi-
menLury und underequIpped.
TIe hnuncIuI reguIuLory sysLem
Loo needs Lo be deveIoped. n
December zo1, Myunmur de-
cided to allow foreign banks to
set-up fully owned subsidiaries
following the visit of Christine
Lagarde, Managing Director,
International Monetary Fund;
and several Asian banks have
since opened their representa-
LIve omces In LIe counLry. TIe
entry of global businesses has
LempLed gIobuI hnunces und
mIcrohnunce compunIes, sucI
as MasterCard to enter the local
murkeL.
Finally, the entry of inter-
national corporations and as-
sociated economic reforms in-
dicates the end of Myanmars
international isolation, and
helps its leaders project the
country as a regular nation-
sLuLe. TIe InvoIvemenL oI oII
companies as a result of March
announcement is going to boost
Myanmars normalisation and
speed up the process of the
countrys continued integration
wILI LIe InLernuLIonuI busIness.
However, there is a danger of
IocuIs noL benehLIng Irom LIIs
deveIopmenL. Myunmur Ieurns
from the Indonesian experi-
ence in its resource-rich Aceh
and West Papua, which experi-
enced decades-long instability
und Insurgency. Some oI My-
anmars oil-rich areas namely
the Rakhine and Tanintharyin
basins have witnessed tur-
buIence Ior u Iong LIme. Nuy-
pyidaw has to ensure that the
entry of big businesses in the
troubled regions does not fuel
the rise of resource nationalism
undJor greuLer IocuI resenLmenL
against the developmental poli-
cIes.
I ndi a i n Myanmar s
ener gy sector
Indias presence was estab-
lished at beginning of this cen-
tury with the state-owned Oil
and Natural Gas Corporation
(ONGC) entering the Myan-
mur murkeL. SubsequenLIy, Lwo
other public sector companies
Oil India Limited (OIL)and Gas
Authority of India Limited
tried to enter the market some-
wIuL unsuccessIuIIy. TIese InI-
tial ventures did not go far, with
both ONGC Videsh and GAIL
losing the marketing rights to
CIInese compunIes. ndIu mude
ILs hrsL prIvuLe secLor enLry
into Myanmars energy market
when Essar Oil Limited bought
exploration and production
rights in two blocs in Rakhine
provInce.
India has since seen a contin-
ued expansion of its foray into
Myanmars energy market
with the public and private sec-
tor entering both as solo play-
ers und In joInL venLures. TIe
recent announcement has fur-
ther ensconced Indias presence
In Myunmur`s energy secLor.
Among the Asian companies,
four Indian companies OIL,
Mercator, Oilmax, and Reliance
Industries bagged exploration
and production rights for four
oII bIocs |M-q, M-1; und M-18
and Yetagun East Bloc (YEB)]
o LIe guII oI MouLLumu In LIe
souLIern penInsuIur Myunmur.
Indias two public sector oil
companies ONGC Videsh and
OIL had bid for three blocs
each, with the former winning
none. Essur OII und ONGC
Videsh have already been un-
dertaking exploration opera-
LIons In LIe counLry. AccordIng
to the conditions put forth by
Myanmar, these Indian com-
panies will have to partner with
the local Myanmar companies
In LIeIr operuLIons.
The new concessions may
prove benehcIuI Lo ndIu Ior
three reasons: All of them in-
volve shallow water drilling
and therefore are less expen-
sIve und reIuLIveIy suIer. TIey
are the most developed and ex-
plored oil blocs in the country
und Iuve been In use. Second, II
India wins the marketing rights
of gas from these blocs, oil and
gas could be directly shipped
to its southern ports, such as
VIsIukIupuLnum und CIennuI.
These blocs are close to Dawei
deep seaport that Thailand is
developing into a mega trans-
port hub, thereby further in-
tegrating Indian and ASEAN
busInesses. TIIrd, ndIu couId
avoid third-party negotiations
problems that it faced in the
case of the India-Bangladesh-
Myunmur pIpeIIne.
Conclusi on
Myanmar is trying to bal-
ance the presence of Western
and Asian energy companies
to widen the FDI sources and
to generate a good image for
LIe counLry In LIe WesL. SImuI-
taneously, Naypyidaw has, by
making it mandatory for the
IoreIgn oII hrms Lo purLner wILI
local businesses, ensured some
level of boost to local capacity-
buIIdIng. SucI u sLruLegy wouId
introduce greater transparency
and aid in the countrys liberali-
suLIon process.
Vibhanshu Shekhar is a visit-
ing fellow at IPCS.
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A
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d
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B
u
c
h
a
n
a
n
/
p
o
o
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R
e
u
t
e
r
s
"The consequent entry of major market players
would bring in investment and technology two
components important for the
development of Myanmars negligible
infrastructure and overall economy."
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
11
Myanmar Summary
Myanmar Summary
Ericsson Bags Five-Year Telenor Myanmar Contract
Firm named network supplier and managed services provider
Phyu Thit Lwin
E
rIcsson Ius bugged u hve-
year contract for multiv-
endor managed services
to support Telenors nationwide
rollout in Myanmar, the Swed-
ish communications technology
und servIces gIunL suId.
Late last year, Telenor also
awarded Ericsson with a frame
agreement to supply radio-ac-
cess network (RAN) and asso-
cIuLed servIces Ior u sIgnIhcunL
portion of Telenors network in
LIe SouLIeusL AsIun counLry.
Amid a slew of political and
economic reforms, Myanmar in
June last year awarded telecom-
munications licences to Qatars
Ooredoo and Norways Telenor,
wIIIe LIe IIcences becume om-
cIuIIy eecLIve In ebruury.
Telenor said its network, com-
prIsIng zG und G Lo provIde
voice and data connectivity, is
expecLed Lo cover qo percenL
of the countrys population of
more LIun 6o mIIIIon In hve
yeurs.
In preparation for the net-
work deployment, Ericsson said
local hiring will continue over
the next few months, and that
investments in training and
development have taken place
over recent months for those al-
reudy on bourd.
Ericsson said its multi-stand-
ard network solution, which it
claims minimises operators
costs, will be used in the de-
ployment, along with 2G and
G equIpmenL LIuL cun be up-
gruded Ior IuLure requIremenLs.
Petter Furberg, CEO of Tel-
enor Myanmar, said: This is
a historic project for Myanmar
and for Telenor, and strong
partners like Ericsson will be
crILIcuI Lo ILs success.
Jan Wassenius, country man-
ager of Ericsson Myanmar, said
LIe hrm`s proven experIence
in building networks in coun-
tries with diverse geographical
condILIons gIves IL LIe conh-
dence that it can create a robust
InIrusLrucLure Ior TeIenor.
We hope the deployment of
this telecommunications infra-
structure will have an enormous
positive impact on the economy
of the country and on the lives
oI ILs cILIzens, Ie suId.
Our ... conLrucL wILI TeIenor
in Myanmar is an important
mIIesLone Ior us In LIe regIon.
We will draw on our years of
experience in managing multi-
vendor network environments
to ensure that network com-
plexity is well managed for Tel-
enor.
n zo1z, ErIcsson commIs-
sioned a study to assess the
potential economic impact of
mobile communications in My-
unmur. TIe sLudy esLImuLes LIuL
the total economic impact of the
mobile sector in the country will
be beLween 1. und q percenL oI
GDP over LIe hrsL LIree yeurs
uILer IIcenses ure Issued.
The potential impact of mo-
bile communications on em-
pIoymenL wus uIso ussessed.
It is estimated that the mobile
communications industry will
empIoy upproxImuLeIy 66,ooo
full time employees in Myan-
mur, wILI un uddILIonuI zq,ooo
full time jobs estimated to be
created in the wider economy
as a result of interactions with
mobIIe neLwork operuLors.
ounded In 18;6, ErIcsson`s
neL suIes In zo1 were $q.q
bIIIIon.
Ericsson ._ _.,.:.~~.
Telenor - ~....~~.~~:
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.,.._....:...~ Telenor
. Ericsson ~:. radio-access
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agreement ~._. ....._..
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_e.._~:. Ericsson . ._.:_~:.._..
._~:......:.~~. .~,....
.. ~ . .:.~ ._ . ..: q ~ . ._~: .
.q._.
(I-R) Petter Furberg, CEU of TeIenor Myanmar, Hans Vestberg, Ericsson president and CEU, and ]an Wassenius, Ericsson
country manager for Myanmar, pose for a photo.
E
r
ic
s
s
o
n
Buksh Foundation
to Introduce
Project
Shein Thu Aung
P
ukIsLunI mIcrohnunce or-
ganisation Buksh Foun-
dation will represent its
Lighting a million lives pro-
ject in Myanmar in response to
an invitation from the Myan-
mar government and the Asian
Development Bank (ADB), a
sLuLemenL suId.
The government of Myanmar
and the Asian Development
Bank have invited Buksh Foun-
dation to Myanmar for intro-
ducing the Lighting a million
lives project and highlight the
initiatives the Foundation has
Luken Lo uecL duIIy IIIe ucLIvI-
ties of the people living in urban
and rural areas of Pakistan, it
suId.
Fiza Farhan, CEO of Buksh
Foundation, will participate at
the Myanmar International In-
vestors Forum to highlight op-
portunities and identify barriers
to government representatives,
InvesLors und donors, IL suId.
This group works with the de-
velopment sector to provide sus-
tainable energy solutions and to
overcome electricity shortages in
Myunmur, IL udded.
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~. . _e. ._ Buksh .e: ...q .._
_., .:. ~ Lighting a million
lives . . ~ , .~ ~.~: ~_ .e:
..:q~.:..__e.~:e...~,.
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_e .~ .~~ .q.~ ~ ._ Buksh
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q ., . . . ~. ._..:.q.~~ ~
_e. ._ .
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
Myanmar Summary
Myanmar Summary
Myanmar Summary
From page ...(Public Finance)
From page ...(Public Finance)
a more strategic planning
and budgeting process
that directs resources to
the highest priority areas,
and through more cred-
ible budget management
system that delivers re-
sources us InLended.
It will help improve ac-
counting and reporting
of budget execution
how public resources are
spent and strengthen
accountability for service
deIIvery, LIe Iender suId.
Improvements in tax
compliance are expected
to make more funds avail-
ubIe Lo hnunce crILIcuI Iu-
man and infrastructure
services while maintain-
Ing hscuI dIscIpIIne.
Improved availability
and management of pub-
IIc hnunce duLu wIII IucIII-
tate better analysis and
policymaking and more
strategic and transparent
use of public funds, the
WorId Bunk suId.
TIe $o-mIIIIon DA
credit is part of the World
Bank Groups rejuvenat-
ed and extensive involve-
ment with the formerly-
denounced Southeast
Asian nation as almost
all western sanctions got
dropped IusL yeur.
During his visit to My-
anmar at the end of Jan-
uury zo1q, LIe bunk`s
President Jim Yong Kim
announced plans by
Iender Ior u $z bIIIIon
multi-year development
puckuge Ior Myunmur.
This will include projects
to help improve agricul-
ture, access to energy and
health services, and to
provide support for other
key development priori-
LIes.
Japan Gives $16m to Aid
UN Activities
Shein Thu Aung
J
apan has granted an
uId oI 1.6 bIIIIon yen
($16 mIIIIon) Lo sup-
port the activities of three
UN ugencIes In Myunmur.
OI LIe LoLuI uId, oo mII-
lion yen will be used by the
UN High Commissioner
for Refugees (UNHCR)
In ILs ucLIvILIes In conIcL-
ridden areas, especially
for helping the internally
displaced people in north-
ernmost Kachin and west-
ern Rakhine states, state-
run medIu unnounced.
The UNHCR will also
use the aid to address the
issues related to citizen-
sIIp und conIcL-IIL peo-
ple in southeastern My-
anmar in Mon, Kayin and
Kayah states and Tanin-
LIuyI regIon.
The UN Childrens
Fund (UNICEF) will use
unoLIer oo mIIIIon yen
Lo IeIp cIIIdren uecLed
by conIcL In RukIIne
and Kachin states to ac-
cess life-saving services
uguInsL vurIous dIseuses.
The World Food Pro-
gram (WFP) will use the
remaining contribution to
support life-saving food
assistance to internally
displaced people in Rakh-
ine, Kachin and northern
SIun sLuLes. ._. . . ~. ._.. ._ _e. ..
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-e:~..:~. ~. .:..
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~.:._._ . ~, ..: . .:.~
. . . . ..: . . ..q .:._ ._.
_e. ._ .~.:._._ . .:.~~ ~
_:.q.~q .~_ .. .:.~:.
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q. .:.~ ~.q.q:~._.
~.:~ ~~_e. ..._ _e. ._ .
_., .:. q ~ ... ~e
~._.. .. -. . , ...: q ~
. .:.~.:~ ~._.q,~~~
.,.. e,.. ~ ... '
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._.
~. .| ~~ ~_ . : . .
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Impact Economy Launches Myanmar
Edition of Garment Industry Report
Kyaw Min
S
witzerland-based invest-
Ing und sLruLegy hrm
Impact Economy has
launched the Myanmar edi-
tion of its Sustainable Apparel
Value Chains: A Primer on In-
dustry Transformation report,
which analyses the competitive-
ness and sustainability issues
IucIng LIe $-LrIIIIon gIobuI Lex-
LIIe und gurmenL IndusLry.
Myanmars garment indus-
Lry Is boomIng. L eurned more
LIun $q1; mIIIIon In exporLs In
zo1z und couId eusIIy empIoy
more LIun 1oo,ooo peopIe by
zo1, suId Dr MuxImIIIun Mur-
tin, the author of the report and
Iounder oI mpucL Economy.
The Primer aims to inform
the Burmese garment and tex-
tile industry and its stakehold-
ers working toward combining
competitiveness with greater
sustainability, the company
suId In u sLuLemenL.
A number of developments
are currently transforming the
industry such as the movement
from slow to fast fashion, shift
of production from advanced
economies towards emerging
markets and the increasing sup-
porL Ior greuLer Lrunspurency.
Garments are already the
countrys most important
manufactured export and nu-
merous new factories are being
buIIL. TIe revIvuI oI LIe IndusLry
could yield important develop-
ment dividends as the country
modernIses, MurLIn udded.
Despite progress, the indus-
try is nevertheless less sus-
tainable today than it has ever
been: a point that was brought
to global attention by the tragic
zo1 Runu PIuzu uccIdenL In
BungIudesI. WILI u Iong LrudI-
tion in textile and garments and
excellent craftsmanship, My-
anmars garment cluster could
weII gruduuLe beyond $6 bIIIIon
in garment exports within a few
yeurs.
TIe reporL IdenLIhes u serIes
of key levers that could help
achieve this kind of industry
transformation, including con-
sidering the entire supply chain
to foster resource productivity
and transparency, upgrading
industry infrastructure, im-
provIng workIng condILIons.
Myanmars enthusiasm to
catch up with its neighbours is
uL un uII-LIme IIgI. GeLLIng LIe
job done and setting Myanmar
on a path to becoming a leading
sustainable apparel cluster is
possIbIe, suId MurLIn.
This shift will require trans-
ferring best practices, collabo-
ration between government, in-
dustry associations, producers,
buyers and civil society, and
IuvIng LIe guLs Lo ucL.
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Economy ._ Sustainable
Apparel Value Chains: A Primer on
Industry Transformation ..~..
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Workers at a garment factory in HIaing Tharyar IndustriaI Zone in the outskirts
of Yangon.
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Myanmar Prepares for Hosting
24
th
ASEAN Summit in May
Aye Myat
A
series of regional meet-
ings have been held in
Nay Pyi Taw last week
in preparation for the upcom-
ing 24
th
ASEAN Summit set for
Muy 8-11.
TIe ASEAN OmcIuIs MeeL-
ing, Joint Preparatory Meeting
and the 1st Meeting of ASEAN
Coordinating Council Working
Group on ASEAN Communitys
PosL-zo1 VIsIon were umong
LIose.
Topping the agenda during
the discussions were ASEAN
Community Building as well
as ASEAN Communitys Post-
zo1 VIsIon und ASEAN`s ex-
LernuI reIuLIons.
The upcoming summit will
be followed by a related An-
nual ASEAN Leadership Fo-
rum slated for May 11 to May
12, where heads of states and
government, entrepreneurs and
experts will focus on regional
challenges, ASEAN cooperation
In zo1 und progress oI LIe re-
gIon und LIe gIobe.
Soon after taking up ASEAN
chairmanship in the begin-
nIng oI zo1q, Myunmur hrsL
hosted ASEAN Foreign Minis-
ters Meeting (Retreat) in Bagan
in January under the theme
Moving Forward in Unity to A
Peaceful and Prosperous Com-
munILy.
At the meeting, the foreign
ministers vowed to speed up
eorLs In ASEAN CommunILy
building and integration and
move forward to realize ASEAN
CommunILy In zo1.
ASEAN ministers also
touched on developing ASEAN
VIsIon Ior posL zo1 us guIded
by ASEAN leaders statement
uL LIe zrd ASEAN summIL und
exploring ways to strengthen
ASEAN`s exLernuI reIuLIons.
In March, an ASEAN Peoples
Forum took place in Yangon
under the theme Advancing
ASEAN Peoples Solidarity To-
ward Sustainable Peace, Devel-
opment, Justice and Democra-
LIzuLIon.
The event attracted nearly
,ooo cIvII socIeLy represenLu-
LIves Irom ucross LIe 1o ASEAN
member countries as well as
Timor-Leste to attend a range
of programs, events and work-
shops on a variety of ASEAN is-
sues.
ASEAN groups Brunei, Cam-
bodia, Indonesia, Laos, Malaysia,
Myanmar, the Philippines, Sin-
gupore, TIuIIund und VIeLnum.
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Council Working Group - ..
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Thailands Siam Cement Aims to
Boost Output, Sales in ASEAN
P|ons tc dcu||c copocity in Myonmor vit|in fvc ycors cj |cinnin prcducticn
S
iam Cement PCL, Thai-
lands largest industrial
conglomerate, aims to
boost cement production and
suIes In SouLIeusL AsIu Lo oseL
a slowdown at home where
political unrest has delayed
spending on infrastructure
projecLs.
Siam Cement, which also pro-
duces chemicals and paper, has
been building cement factories
in the fast-emerging economies
of Cambodia, Indonesia and
Myanmar where an infra-
structure bonanza has pushed
up demand for construction
muLerIuIs.
At home in Thailand, sales
have slowed because of a
decline in rebuilding demand
uILer wIdespreud oodIng In
zo11, und Iuve been exucerbuL-
ed by the prospect of clashes
between supporters of the
prime minister and protesters
wIo uIIege corrupLIon.
Siam Cement projects do-
mestic cement demand growth
oI z percenL Lo percenL LIIs
yeur, Irom ; percenL IusL yeur.
That compares with projected
annual growth across the As-
sociation of Southeast Asian
Nations (ASEAN) of 7 percent
X|cttiyo Jittopcn ond
Wi|ovon Pcnpito|
Lo 8 percenL.
If political crisis is pro-
longed, Thai cement demand
is likely to be negative, Chief
Executive Kan Trakulhoon said
uL LIe ReuLers ASEAN SummIL.
ASEAN will be a growth
platform for the world econ-
omy. Ls uLLrucLIveness Ius
Increused sIgnIhcunLIy uILer
Myanmar was included, Kan
suId uL LIe summIL.
Myanmar is emerging from
decades of military rule and
isolating sanctions and has
been looking to attract foreign
investment since a quasi-
cIvIIIun governmenL Look omce
In zo11. TIIs yeur, LIe counLry
Is cIuIrIng ASEAN Ior LIe hrsL
LIme.
Siam Cements ASEAN assets
reucIed $z.z bIIIIon IusL yeur,
or 16 percenL oI LIe LoLuI Irom
percenL In zoo8. TIe compuny
aims for ASEAN sales to reach
o percenL Irom zo percenL by
zo18, Kun suId.
ASEAN is made up of Thai-
land and the hosts of its three
new factories, plus Brunei,
Laos, Malaysia, the Philippines,
SIngupore und VIeLnum.
Siam Cement aims to begin
production at the new factories
over the next two years, raising
overuII cupucILy by zo percenL
from 24 million tonnes now,
Kun suId.
Myanmar Summary
..-~_~....~.~~:..
_~._e...: SiamCement PCL
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.q._.
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Cement ~.,_e ~..:..e:.
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~_~:. ._ .~ .:.._~: ._. .q: ..
..:.~ ...~...._. e...
~ _._~...._.~e.~:.
.: q:..,.. , q:..,.~
~.~~.:._e SiamCement .
.,.,.:._.. .,.._..~
q:..,._e.._~:. .q._.
OCBC Eyes Expansion in
Greater China Over Another
ASEAN Market
Sccs C|ino os drivin Asion octivity; o|rcody cntrcnc|cd in
Scut|cost Asio
O
versea-Chinese Banking Corp Ltd (OCBC) aims to ex-
pand in Greater China which it sees as the engine of Asian
economic activity, rather than in another market in South-
east Asia where Singapores second-biggest lender is already well
enLrencIed.
OCBC, No.z Lo DBS Group HoIdIngs Ld by usseLs, Is LryIng
to expand outside its core markets of Singapore, Malaysia and
ndonesIu, wIIcI LogeLIer uccounLed Ior qo percenL oI LIe bunk`s
pre-Lux eurnIngs IusL yeur.
In China, OCBC wants to raise its stake in Bank of Ningbo to the
maximum permitted, and in Hong Kong, OCBC is in talks to buy
family-owned Wing Hang Bank Ltd for what could be a record
umounL Ior LIe SInguporeun pIuyer.
From our perspective, I think we would be more interested to
go into the Greater China market rather go into another ASEAN
market at the present time, Chief Executive Samuel Tsien said at
LIe ReuLers ASEAN SummIL.
ASEAN, or the Association of Southeast Asian Nations, is made
up of OCBCs three core markets plus Brunei, Cambodia, Laos,
Myunmur, LIe PIIIIppInes, TIuIIund und VIeLnum.
Chinas economic activity is really driving the economic activi-
ties of Asia right now plus the fact that Chinese companies desire
Lo move osIore Ius uIso creuLed uddILIonuI opporLunILIes Ior us,
TsIen suId uL LIe summIL. Reuters
Soccd Az|or ond Boc|c| Armstrcn
Myanmar Summary
Oversea-Chinese Banking Corp
Ltd (OCBC) ._ Greater
China ...~ ~ ~ . . , ..:..
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e....~~.: ~.q.~:~:qq
~_.:....~ ~ .:.~ . . .~: .. , _..
~:q...:..q...:q~.- ~.~
~~..~_e. OCBC . ,_.
:.._ . OCBC ._ . ~:. .
The company then plans to
double capacity in Indonesia
und Myunmur wILIIn hve yeurs
of beginning production, Kan
suId.
Siam Cement is a century
oId und o percenL owned by
the Thai royal familys Crown
Property Bureau investment
urm.
The company is ASEANs
second-largest cement maker
by capacity after Swiss Holcim
Ltd, and is the regions big-
gest producer of downstream
cIemIcuIs Ior pIusLIcs.
Reuters
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...~~_~..:.-_.....~~.:._
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Ufce workers pass a Iogo of Uverseas-Chinese Banking Corp Itd (UCBC) at the
company`s headquarters in Singapore.
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A worker cIeans a cement truck at a ready mixed concrete pIant of Siam Cement in
Nonthaburi province, on the outskirts of Bangkok.
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
Tensions Put Thailand on Sidelines of
ASEAN Investment Plans
C
ontinuing political
uncertainty, de-
railed infrastructure
plans and sliding domes-
tic demand are making
big Thai companies look
more keenly at investing
elsewhere in the neigh-
bourhood rather than in
Southeast Asias second-
IurgesL economy.
At the Reuters ASEAN
Summit, two of the
countrys largest compa-
nies, Siam Cement PCL
and Charoen Pokphand
(CP) Foods PCL, outlined
growth strategies that are
now hrmIy Iocused ouL-
sIde LIeIr Iome counLry.
We are investing more
in ASEAN and less in
Thailand, where we focus
on high value-added
products, Siam Cement
chief executive Kan Tra-
kuIIoon suId.
CP Foods told the sum-
mIL Iow IL Is LurgeLIng ;
percent of company reve-
nue to come from foreign
operations within the
nexL hve yeurs, up Irom
6 percenL currenLIy.
Growth in emerging
countries will surpass the
domestic market, said
chief executive Adirek
Sripratak, noting his
company plans to expand
in nearby Philippines and
VIeLnum.
On Friday, there was
another piece of gloomy
data on the Thai econ-
omy, as factory output
fell for the 11th straight
month in February, by
q.q percenL compured
with a Reuters poll
IorecusL Ior u . percenL
drop.
For months, the outlook
for growth has worsened
even LIougI omcIuIs Iope
exports - which account
Ior ubouL 6o percenL oI
the economy will rise
and lift the economy this
yeur.
The central bank recent-
Iy cuL ILs zo1q economIc
growLI IorecusL Lo z.;
percent, compared with
q.8 pcL IusL OcLober, jusL
before anti-government
protesters took to the
streets to seek the re-
moval of Prime Minister
X|cttiyo Jittopcn ond
Orot|oi Sririn
YIngIuck SIInuwuLru.
A decision earlier this
month by the Constitu-
tional Court to annul the
resuIL oI LIe eb. z gen-
eral election has plunged
the country into political
limbo, raising fears that
the economy will struggle
to pick up speed anytime
soon.
If political crisis is
prolonged, Thai cement
demand is likely to be
negative, said Siam Ce-
ments Kan, who runs the
countrys largest indus-
LrIuI congIomeruLe.
Pricey political
overhang
That political uncer-
tainty has been weighing
on foreigners who invest
In TIuI securILIes. A
March 14 research note
from Nomura showed
foreigners have been net
sellers of Thai equities
this year, with net sales
oI $8; mIIIIon. ndo-
nesia and Philippines by
contrast have seen net
purchases by foreigners
oI $1.o1 bIIIIon und $1;1
million, respectively, so
Iur In zo1q.
If I look across the
region, I would say there
are better prospects
than Thailand right now
until we get some sort of
resolution to the political
overhang that remains
there, Andrew Swan,
head of Asian equities
at the worlds biggest
money manager Black-
Rock nc, suId.
Political unrest could
also threaten the coun-
trys credit rating, which
all three major rating
agencies currently have
on a stable rating of
BBB+JBuu1, In LIe In-
vesLmenL grude cuLegory.
If ongoing political
uncertainty continues to
drag, the country might
be on a watch list, Ng
Kheng Siang, head of
AsIu PucIhc hxed Income
at State Street Global
Advisors, which has just
over $z LrIIIIon In usseLs
under management, told
LIe summIL.
Some corporates in
South- east Asia are
generally overlooking
Thailand in favour of the
faster-growing markets of
Myanmar Summary
Myanmar and Cambodia,
us weII us IurLIer uheId
In AsIu.
Singapores Oversea-
Chinese Banking Corp,
Southeast Asias second
largest lender, said that
despite a fall in valua-
tions in Thailand, it has
little appetite to make
any acquisitions there at
presenL.
Culturally the Greater
China market appeals to
us a bit more than the
Thai market, said the
lenders chief executive
Samuel Tsien, who is cur-
rently trying to buy Hong
Kongs Wing Hang Bank
Ld.
The chief executive
of PT Astra Interna-
tional, Indonesias largest
listed company by market
capitalisation, said it an-
ticipates that Southeast
Asias largest economy
could overtake Thailand
as the regions biggest
auto market within two
yeurs. TIuIIund Is uIso u
major production base
for international auto
manufacturers, but Indo-
nesia is hoping to sup-
pIunL IL In comIng yeurs.
Reduced investment
pledges
Thailands troubles are
hurting its investment
numbers. n LIe hrsL Lwo
monLIs oI zo1q, pIedges
from foreign investors
were q percenL Iower
than a year earlier and
those from Japanese
InvesLors were down 6
percenL.
FDI this year may be
Iess LIun $8 bIIIIon, LIe
average long-term rate,
because manufactur-
ing FDI will disappear
quite a bit as investors
are waiting to assess the
situation, said Pimon-
wan Mahujchariya-
wong, an economist at
the Kasikorn Research
CenLer In Bungkok.
However, some portfolio
investors still see oppor-
LunILIes. TIe $1z bIIIIon
Templeton Asian Growth
Fund, run by emerging-
markets investor Mark
Mobius, increased its
allocation for Thailand to
z;.1z percenL In ebru-
ury, up Irom zq.; percenL
at the start of the year,
according to data from
Ipper.
Thats a bet economists
beIIeve couId sLIII puy o
in the long-term, with
Thailands proximity to
Myanmar, Vietnam, Laos
und CumbodIu.
Its integration into
manufacturing supply
chains around the region
suggesLs LIuL D ows
will remain positive in
the medium term, said
Benjamin Shatil, an
economist at JPMorgan
In SIngupore. Reuters
We are investing more in ASEAN and
less in Thailand, where we focus on high
value-added products.
~.q .~: ~:q- . ~ e... :.
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.._ ..q..~_._..
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.- ~.~_~..:.~.,_e
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..:.~ q..._...q, ..
..q.,_~._~:. .q._.
~:. e . . ..~ . .. ... .
. ~ .. -~_~ .. .~ . ~
_~ .. . . _e. ..: SiamCement
PCL . Charoen Pokphand
(CP) Foods PCL ~. ,.~
~.,_e e.~.| _._~._
.e ~ _._ .~ .: . . , .
e_e.~.~~..e:-e:.:.~
..:q~.:..__e.._~:.
~.e:._.:_~:..._...~
~.,_e .. ~ ~:. e
..:.~ ..q..._....,
._~:. SiamCement .
~...:~q:q.. Kan
Trakulhoon ~ ._.:_~:..
._.CP Foods .._. ,.
~ ~.,_e e. .~ q ~ ~ . ~
- ~. ' q:..,.~~
_._ .. . , ...: q ~ . .:.. qq
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~.~~.- q:..,.
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_~:..._.
Anti-government protesters react as a portrait of their sIain comrade is pIaced under a stage in the
group`s encampment near the Covernment House in Bangkok. Cunmen opened re on a group of Thai
anti-government protesters driving away from a Bangkok raIIy Iast week, kiIIing one, wounding four
and raising tension in a poIiticaI crisis that has gripped the country for months. Continuing poIiticaI
uncertainty, deraiIed infrastructure pIans and sIiding domestic demand are making big Thai companies
Iook more keenIy at investing eIsewhere in the neighbourhood rather than in Southeast Asia`s second
Iargest economy.
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Myanmar Business Today
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REGIONAL BIZ
15
Myanmar Summary
ADB Sees Steady Growth for Developing Asia
D
eveloping Asia
will extend its
steady eco-
nomIc growLI In zo1q
as higher demand
from recovering
advanced economies
will be dampened
somewhat by moder-
ating growth in China,
a new Asian Develop-
ment Bank (ADB)
reporL suId.
ADB`s ugsIIp
annual economic
publication, Asian
Development Out-
Iook zo1q (ADO),
released last week,
forecasts developing
Asia will achieve gross
domestic product
(GDP) growLI oI 6.z
percenL In zo1q, und
6.q percenL In zo1.
TIe regIon grew 6.1
percenL In zo1.
Developing Asia
is successfully navi-
gating a challeng-
ing global economic
landscape and is well
positioned to grow
steadily over the next two
years, said ADB Presi-
denL TukeIIko Nukuo.
Risks to the outlook
have eased compared to
the recent past, and pol-
icy makers in the region
cun munuge LIem. AL
the same time, countries
should continue to make
every eorL Lo pursue
sound macroeconomic
policies and needed
sLrucLuruI reIorms.
The Manila-based
lender said demand for
Asias output is expected
to grow as the recovery
in the major industrial
economies gains mo-
menLum. CombIned GDP
growth in the United
States, the euro area, and
Japan is expected to pick
up Lo 1.q percenL In zo1q
Irom 1 percenL In zo1
before strengthening
IurLIer Lo z.z percenL In
zo1, uccordIng Lo ADB.
The improvement in
demand, ADB said, will
be oseL somewIuL by
moderating growth in
China where the economy
sIowed Lo ;.; percenL In
zo1 on ImpucLs Irom
tightened credit growth,
pared industrial overca-
pacity, deepening local
government debt, rising
wages, currency apprecia-
tion, and the continuing
shift in the governments
development priori-
Wai Linn Kyaw
ties away from quantity
Lowurd quuIILy. TIese
factors persist and China
growth is forecast to slow
Lo ;. percenL In zo1q
und ;.q percenL In zo1,
ADB suId.
The lender said while
risks to the outlook have
eased, three areas war-
runL cIose monILorIng.
IrsL, II eorLs In CIInu
to curb credit expansion
are too abrupt and exces-
sively undermine growth,
a deeper slowdown could
drag down prospects for
ILs Lrude purLners. Sec-
ond, data on the recovery
in the major industrial
economies have been
mixed; pointing to the
possibility that demand
for the regions goods
from these countries may
be softer than envis-
uged. And LIIrd, u IurLIer
sIock Lo gIobuI hnuncIuI
markets from changes in
US monetary policy can-
noL be ruIed ouL.
Across the subregions,
East Asia will see its
growLI Lrend uLLen us
growth moderates in
CIInu. EusL AsIu grew
by 6.; percenL In zo1, u
sIIgIL upLIck Irom zo1z,
and is expected to main-
LuIn LIuL ruLe InLo zo1q
und zo1. TIe sIower
growLI In CIInu wIII o-
set upswings in the newly
industrialised economies
of the Republic of Korea;
Hong Kong, China; and
TuIpeI, CIInu. As poIIcIes
LIgILen Lo curb InuLIon,
growth in Mongolia will
moderuLe In zo1q und
remain broadly stable in
zo1. nuLIon
in East Asia hit
a 4-year low of
z.q percenL In
zo1 und wIII
remain man-
ugeubIe uL z.
percenL In zo1q
und z.q percenL
In zo1.
Although
growth in South
Asia is inching
up, it remained
the slowest
growing sub-
region, with
GDP expanding
by q.8 percenL
In zo1. Mod-
eration in India
had an outsized
impact on the
subregional
uveruge. GrowLI
is forecast to
Improve Lo .
percenL In zo1q
und .8 percenL
In zo1, wILI
projected re-
covery in India
Lo . percenL
und 6.o per-
cent, assuming
the implementation of
long-delayed structural
reIorms.
Growth patterns in
Southeast Asia will be
dominated by country
IucLors. SubregIonuI GDP
deceIeruLed Lo .o percenL
In zo1 us soIL exporL mur-
keLs und sIowdowns uecL-
ed Indonesia, Thailand,
und MuIuysIu. GrowLI
in Indonesia, the biggest
of these economies, was
dampened by policies the
government adopted to
subdue InuLIon uILer IL
sIurpIy ruIsed IueI prIces.
Subregional growth is
forecast to be similar in
zo1q, us guIns Irom beLLer
exporL murkeLs ure oseL
by moderating domestic
demund. TIe ouLIook
Improves Lo .q percenL In
zo1, wILI growLI pIckIng
up In ndonesIu uILer Inu-
tion ebbs, and Thailands
economy rebounding if po-
IILIcuI dIsrupLIon recedes.
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
16
Myanmar Summary
City Students Hope to Launch Site for Slow News
Te Charta will wait two weeks after a major news event before publishing a story in order to present a fuller picture
Alastair Reid
F
rustrated with the
breakneck-pace of
24-hour news, two
hnuI yeur sLudenLs Irom
Londons City University
are launching a project to
sIow down LIe news.
The Charta, currently
in the funding stage but
planned for launch in
September, will take two
weeks to fully research
and analyse the impact
of a news event instead of
rushing to publish a story
before all the facts are
known.
Its supposed to allow
us to give events time to
unfold and avoid any pos-
sible inaccuracies that
you get while you are,
for instance, following a
liveblog or Twitter feed
around an event, Caro-
lina Are, The Chartas co-
founder and editor, told
JournuIIsm.co.uk.
Last weeks reports of a
pIune crusI o LIe cousL
of Gran Canaria which
turned out to be a tug
boat and initial reports
on the disappearance of
IgIL MH;o ure recenL
examples of when some
news organisations have
jumped the gun on re-
porLIng.
We are aiming our
website at people that
are actually looking for
the set view on a certain
event, or coverage that is
dehnILe, ruLIer LIun jusL
whats happening now,
conLInued Are.
Breaking news is still
important when accurate,
she said, but The Charta
will look to contextualise
events and help people
learn from them, to see
what it means to their fu-
Lure und LIeIr pusL.
One of our slogans is
that Twitter asks whats
happening and we ask
how, why and what is
the future impact of the
situation, co-founder
and managing director
Charles-douard van
de PuL LoId JournuIIsm.
co.uk, wIIcI cunnoL be
done within an hour of an
evenL IuppenIng.
You need the time to
really investigate whats
happening, why its hap-
pening, how it happened
and what it means for the
IuLure.
A por ous paywall
The Charta will be fund-
ed through a subscription
modeI, uL ; per yeur
or 6.z u monLI, wIIcI
van de Put compared to
the Financial Times me-
Lered-puywuII.
Once established, read-
ers will be invited to set up
an account on The Charta
where they will be able to
view a limited number of
articles before subscrib-
Ing Ior IurLIer uccess.
One thing weve identi-
hed us u probIem wILI LIe
media today is that every-
thing is free and therefore
the stories they have to do
are the stories that attract
as many people as possi-
bIe, suId vun de PuL.
Instead, The Chartas
co-founders hope to at-
tract partners instead of
readers, said Are, who can
give constant feedback on
the editorial process, sug-
gest stories they would
like to see covered or help
investigate a topic where
IeusIbIe.
We are trying to make
independence one of our
biggest goals, she said,
and being completely in-
dependent and complete-
ly unbiased is impossible,
but we are going to strive
for open-mindedness and
taking two weeks before
publishing an article is
going to be a great help
Lowurds LIuL.
Van de Put was keen to
stress how The
Charta will dif-
fer from weekly
publications like
the Economist or
Business Week
in rounding up
recent events
Ior unuIysIs. AI-
though they may
tread a similar line in
coverage, he believes The
Charta will be able to pub-
lish new stories on a daily
busIs once esLubIIsIed.
They are weekly but
they talk about the week
that just happened, he
suId. So II IL`s pubIIsIed
on a Friday then what
happened on a Thursday
wIII be rusIed.
With us there would be
new stories every day, he
explained, but with two
weeks-worth of research
beIInd LIem.
A prototype of the web-
site includes stories on
changes to The Defama-
LIon AcL oI zo1, sex ud-
diction in the digital age,
the reporting of global
humanitarian crises and
a curated section to show-
case the best journalism
Irom oLIer sources.
We felt quite tired
while reading the news,
Are suId. We were con-
stantly ambushed by up-
dates and sometimes we
couldnt make sense of
wIuL wus goIng on.
So we decided that we
wunLed Lo cIunge LIuL.
The Kickstarter cam-
paign to crowdfund The
CIurLu ends on AprII z6.
Journalism.co.uk
Twitter asks whats hap-
pening, and we ask how,
why and what is
the future impact of
the situation
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Twitter ~.,_e :_e..,
.,_ .e ..._ ., .. .:q ..:
._. ..~~.,_e ~..|
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.,_. ~e ._~: _e. .,_ .
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The Charta, initiated by two students fed up with the breakneck speed of 24-hour news, wiII take two weeks to fuIIy research and anaIyse
the impact of a news event instead of rushing to pubIish a story before aII the facts are known.
J
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S
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
Myanmar Summary
G20 Summits Have Limited Relevance
Ior Murkets: ICB
Little short-term market impact from G20 since 2007; Media attention on G20 probably not justifed
David Milliken
R
egular meetings of
the worlds leaders
and central bank-
ers have little short-term
ImpucL on hnuncIuI mur-
kets, despite extensive
media coverage, accord-
ing to research published
by the European Central
Bunk.
ECB researchers looked
at how the price of shares
and bonds changed after
meetings of the Group of
zo (Gzo) beLween No-
vember zoo; und Sep-
Lember zo1 - u LIme
when the body was at the
IeurL oI gIobuI eorLs Lo
lessen the impact of the
hnuncIuI crIsIs.
The big picture arising
from our analysis is that
eecLs oI Gzo summILs
are small, short-lived,
non-systematic and non-
robust, the study con-
cIudes.
EvIdence LIuL Gzo
meeLIngs eused hnuncIuI
market jitters - for exam-
ple, by causing share pric-
es to rise and bond prices
in advanced economies to
IuII - wus weuk.
(This) suggests that the
information and decision
conLenL oI Gzo summILs
has been of limited imme-
diate relevance for market
participants, or already
IncorporuLed In prIces.
The result contrasted
with other, similar re-
search into European Un-
ion summits, US Federal
Reserve meetings and a
predecessor oI LIe Gzo,
the G7 all of which had a
cIeur ImpucL on murkeLs.
The research only fo-
cused on the short-term
ImpucL oI Gzo meeLIngs,
and was not able to judge
LIe eecL oI Ionger-Lerm
hnuncIuI reIorms seL In
train at the meetings, or
LIe benehLs guIned Irom
policymakers getting to
know eucI oLIer beLLer.
Such advantages would
muke Gzo summILs pos-
sibly still valuable, but it
would probably not justify
the media attention that
they sometimes receive,
LIe reseurcIers noLed.
TIe nexL Gzo guLIerIng
oI hnunce mInIsLers und
central bank governors
will take place in Wash-
IngLon on AprII 1o, on LIe
fringes of a meeting of the
International Monetary
und. Reuters
C2U Ieaders at Iast year`s C2U summit.
R
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A job seeker (C) taIks to an exhibitor at the CoIorado HospitaI As-
sociation heaIth care career fair in Benver.
R
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W
ilk
in
g
Iuding Winter to
Lift US Payrolls
Lucia Mutikani
T
he US economy
likely created jobs
at the fastest pace
in four months in March
as it shifted into a higher
gear after being held back
by u bruLuIIy coId wInLer.
Employers are expected
Lo Iuve udded zoo,ooo
new jobs to their payrolls
last month after adding
1;,ooo In ebruury, uc-
cording to a Reuters sur-
vey oI economIsLs. TIe
jobless rate likely dipped
one-tenth of a percent-
age point, returning to the
hve-yeur Iow oI 6.6 per-
cenL reucIed In Junuury.
Its looking like the
economy is in the process
of reaccelerating after a
very severe winter, said
Robert Dye, chief econo-
mist at Comerica in Dal-
Ius.
An abnormally cold and
snowy winter slammed
the economy at the end
oI zo1 und LIe begIn-
nIng oI LIIs yeur. GrowLI
was further undercut by
eorLs by busInesses Lo
trim bloated inventories,
LIe expIruLIon oI benehLs
for the long-term unem-
ployed and cuts to food
sLumps.
But data ranging from
manufacturing and ser-
vices sector activity to
automobile sales have
signaled strength in the
economy us LIe hrsL quur-
Ler ended.
Should March hir-
ing meet expectations,
it would take job growth
buck neur LIe zoq,ooo
monthly average that pre-
vuIIed LIrougI LIe hrsL 11
monLIs oI zo1, und Ieuve
the economy close to re-
gaining the positions lost
durIng LIe recessIon.
A quickened pace of hir-
ing could lead investors
to bring forward expecta-
tions for when the Federal
Reserve will move over-
night interest rates up
Irom neur zero. CurrenLIy,
bets are centered around
LIe mIddIe oI nexL yeur.
Fed Chair Janet Yellen
has argued the central
bank needs to maintain
a highly accommodative
monetary policy for some
time to come to eliminate
slack in the labour mar-
keL.
She has pointed to an
unusually large number
of long-term unemployed,
wIo uccounL Ior ; per-
cenL oI LIe 1o. mIIIIon
ouL oI work. Muny oLIer
AmerIcuns cun onIy hnd
~. : . . ...| ...: .:.
. -e ~ ~ _.:.. . , .~ .
. _._~._ .~ . .. ... .. .:.
._~: . ._~....~ ~ .:.~..'
~ ~:.~ .~ .q:~ . ~,_.
e q .:._ _e. ._~: . .q:.
-e~. ...~.~...:
. .~.,.. ~..~q . q._ .
.q:.-e~. ..~.,
_.. .:.~.,_e Group of 20
(G20) .~ . .. ... .. ~_ . .
.,:~ q ee:.... , ..:..
. ....:.. .... , ..:.._
~~ . . . . ~ :.. ~~,
... .~~:.~_~:.~
._ . ._.: .. . ._ . ._
~.~ ~ . .. .. .:. _~._~: .
.q._.
~. .| ~. , ~:.~~ .
_:.q.~:.-..~..~
.q:~ . .:.~ ~~~ . . .
..: .|.q, ~~ ~ ._. _~ ... .
._~q:~ .q:.-e~.:
._. ~.q..|.._. ..~-
. .. .. .:. .:.. ~ ..'.:
._~.~.: G20 .~.
.. . .. . . .:. - ~~ ..~
.q:~ .. : ,_..|._.. ~:.~
.~ .q:~ . .:q .. .,.
~~._ ..q .. . .:. ._ .
.q._~:. ..~...~:~e.
.:.~ ....:.._.
~..|..~.,...:.~
. : G20 .~ . .. ... .. .:.-
~:.~ ~~ ..~ .q:~ . ~. .
~_ .~ .:~:, . ~ . ._.
~..q~,-...:..q..: _.,
._ ~ .~~ .~: .. , .:.
_ . ..~ .~ ~. . ~~ e,
~ .. ~ ~_., . .. , .:.~.
q.q._....:.q:.~:.~
. .. :..q.~. .. .:.q . ..:
._.e.~.| _.,._e_e.~.
~~ .:._ ~.,~:..
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~. . ~~ ~.. ..| .
part-time work or have
gIven up LIe job IunL.
The labour market is
moving in the right di-
rection but not as quickly
as the Fed would like it,
said Ryan Sweet, a senior
economist at Moodys An-
alytics in West Chester,
PennsyIvunIu. Reuters
~~,~~~ ~..e,~..:.
.q,..,.q.:.~ ..:.,.
:. _ ~_ . . .e.e: ~| q .~
~. . ~~ ..| . ~,~~~ ~
e,~.. . ._~: ., ~ ~:. . .
. :..q.._:q .:.-.. .:
.,.....:.~q .q ._.
..:.q:. .~: . , _. .. ,
~...:..q..:~q,~e, _e
_., ._ .~: .. , .:._ ~
._.~., ~. q. ~ q .,._.
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
David Mayes
T
he recently announced
proposals in the new UK
budget set the stage for a
complete reform of the pension
Iuws. Muny expuLs workIng or
retiring in Myanmar are very
IIkeIy Lo be uecLed by some oI
LIe cIunges. TIe consuILuLIon
perIod couId see some herce de-
bate, but if the budget is signed
into law as is then there will
be some drastic changes to not
only the UK pension market but
IIkeIy LIe osIore one us weII.
or dehned conLrIbuLIons
pensions, also called money
purchase schemes, the gov-
ernment is considering allow-
ing the scheme members to
Iuve compIeLe exIbIIILy In
drawdown once they reach re-
LIremenL uge. TIIs essenLIuIIy
means they could cash in their
entire pension if they want and
InsLeud oI puyIng u percenL
unauthorised payment charge
they would be taxed at what-
ever their marginal tax rate
Iuppens Lo be LIuL yeur. TIIs
would speed up the collection of
revenue for HMRC as many are
likely to encash their pensions
upon reucIIng reLIremenL uge.
The worry of course is that
people will go out and blow
it all and then need to be sup-
porLed by LIe sLuLe. TIIs wus LIe
UK Pension Reforms Announced
logic behind forcing pensioners
to take an annuity to secure an
income for life, but with interest
rates remaining low for so long
many pensioners have been
getting a horrible deal on their
unnuILIes. TIIs budgeL wouId
represenL essenLIuIIy u 18o de-
gree turn around from the gov-
ernmenL`s prevIous sLunce. n-
deed the HMRC has been very
aggressive in preventing those
wIo Iuve LrunsIerred osIore
to a QROPS to continue to fol-
low the UK drawdown guide-
IInes bused o GAD ruLes.
The budget also called for a
consultation on the death tax,
which taxes any remaining
Iump sum IeIL In u pensIon uL
percent before it can be passed
on Lo benehcIurIes. Muny In
the industry worry that the op-
tion to transfer a pension out-
side of the estate, such as into
a QROPS, may soon be a thing
oI LIe pusL. L Is sLIII Loo eurIy
to know for sure which way
the government will go, but the
window to remove a pension
from the UK tax net may be get-
ting ready to close, at least in
Lerms oI HT. However, IL muy
uIso noL be Iur o LIuL one cun
LrunsIer u pensIon osIore, und
cash in the entire amount at a
much lower tax rate than in the
UK. We wIII Iuve Lo wuIL und see
if QROPS trustees interpret the
governments change of stance
as meaning that they also can
uIIow LIe sume exIbIIILy.
Those who have valuable de-
hned benehLs scIemes or de-
hned conLrIbuLIon scIemes
wIIcI uLLrucL sIgnIhcunL Lux II-
abilities may be well advised to
at least look into transferring
osIore now us LIe opLIon muy
noL be uround Ior mucI Ionger.
However, if you have a smaller
pension pot, the best advice go-
ing forward may in fact be to
leave it in the UK and cash it in
over a few years while you are
in a low tax bracket in retire-
menL. TIe upper IImIL on LrIvI-
ality payments, where a pension
is allowed to be paid out com-
pletely in a lump sum because it
is too small to provide a reason-
able income, would also be in-
creused. A LoLuI oI oK GBP In u
maximum of three pensions, up
Lo 1oK per pensIon, wouId quuI-
IIy Ior LIe LrIvIuIILy puymenLs.
David Mayes MBA provides
wealth management servic-
es to expatriates throughout
Southecst Asic, jocusin on
Myanmar Summary
Myanmar Summary
Pedestrians pass an advertisement featuring a one penny piece in Wandsworth west Iondon. The recentIy announced propos-
aIs in the new UK budget set the stage for a compIete reform of the pension Iaws.
L
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Workers unIoad rice imported from Vietnam from a ship docked at a port in ManiIa.
UK Pension Transfers. He can
be reached at david.m@fara-
mond.com. Faramond UK is
regulated by the FCA and pro-
vides advice on pensions and
taxation.
Philippines Seeks Bids from Exporters in
Rice Deal, Including Myanmar
Erik dela Cruz
T
he Philippines is seeking
bids from exporters in
at least seven countries
In ILs Lender Lo buy 8oo,ooo
tonnes of rice, a government of-
hcIuI suId IusL week.
The Southeast nation, which
typically imports rice from Vi-
etnam and Thailand, is looking
to bolster stockpiles for the sec-
ond half of the year when little
of the staple grain is harvested
domesLIcuIIy.
We have invited all rice-
exporting countries, even the
United States, said National
Food Authority (NFA) Deputy
Administrator Ludovico Ja-
rina, adding that he hoped this
would boost the chances of get-
LIng u good deuI.
Rice exporters in Myanmar,
Pakistan and India may also
bid for each or all of the four
zoo,ooo-Lonne IoLs, JurInu
suId.
Its possible that there will
be muILIpIe wInners. We wIII
choose the lowest price, he
suId.
Vinafood 2, Vietnams top rice
exporter, has taken bid docu-
ments and is looking to sup-
ply the entire volume, while
Thailands government has ex-
pressed interest in participating
In LIe AprII 1 open Lender, Ju-
rInu suId.
Vinafood 2 and the embassies
of Thailand and Cambodia in
Manila sent representatives to a
pre-bidding conference held at
un NA omce on TIursduy.
AIso presenL were omcIuIs
from international commodi-
ties traders and grain exporters
such as Louis Dreyfus, South
Koreas Daewoo International
Corp and Vietnams Gentraco
Corp Thailands Asia Golden
Rice Co Ltd and Thai Hua Co
Ld were LIere us weII.
Bids will be for the supply of
1-percenL broken, Iong gruIn
well-milled rice in US dollars
per Lonne, on u CJDDU busIs.
The Philippines, one of the
worlds biggest rice buyers, is
also looking to stabilise local re-
tail prices of the grain, which hit
a four-month high in February
umId LIInnIng IocuI suppIIes.
The NFA is seeking delivery
oI LIe 8oo,ooo Lonnes In Iour
shipments between May and
August, with an approved budg-
eL oI 1;.z bIIIIon pesos ($8
mIIIIon).
Its purchases could provide
support to rice export prices
in Asia, with Thai rice prices
steadily falling on rising supply
as farmers harvest their second
crop.
Rice prices in Vietnam were
stable last week, with the har-
vesL oI u mujor crop peukIng.
Reuters
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
Myanmar Summary
AYA Taps Local Travellers with
Visa Multicurrency Cards
Phyu Thit Lwin
A
yeyarwady Bank (AYA
Bank) and Visa has
launched multicurrency
prepaid travel cards for corpo-
rate and individual travellers
goIng ubroud, LIe hrms un-
nounced.
The AYA World Travel Visa
card, which can hold up to three
currencies (Euro, US dollar,
Singaporean dollar), will allow
cardholders to pay for purchas-
es ubroud, LIe bunk suId.
It can be used to make pur-
chases at all merchants, either
online or in-store, where Visa
is accepted, besides having im-
mediate cash access at ATMs
worIdwIde, AYA Bunk udded.
The bank will issue two types
of cards corporate and indi-
vIduuI.
AYA Bunk Is LIe hrsL bunk oI-
fering the corporate card solu-
tion in the electronic payments
sector, Phyo Aung, managing
dIrecLor oI AYA Bunk suId.
Now that the country is open-
ing up, more local businesses
are entering the global market
and travel and entertainment is
the one of the largest business
expenses in most organisations
and it continues to grow, he
udded.
Phyo Aung said the AYA cor-
porate card can assist busi-
nesses with better control over
LIeIr busIness expenses. L wIII
reduce the time spent authoris-
Ing und LruckIng LrunsucLIons.
He said with individual cards,
cardholders can travel safely
and conveniently without wor-
rying to carry a large amount of
noLes wIen LIey LruveI.
An additional feature of the
new card is Visa PayWave con-
tactless payment technology,
which allows the cardholder
to make contactless payments
where Visa PayWave is accept-
ed.
Somboon Krobteeranon, Visa
country manager, Myanmar
and Thailand, said these cards
will provide both corporates
and individual cardholders with
greater security and conveni-
ence in the ways they can pay
wIen ubroud.
We look forward to continu-
ing to work with Ayeyarwady
Bank to introduce additional
products that will support the
deveIopmenL oI Myunmur`s h-
nuncIuI InIrusLrucLure, Ie suId.
As of March, Ayeyarwady
Bunk Iud 68 bruncIes counLry-
wide and its non-bank custom-
er deposILs reucIed over K8oo
bIIIIon ($81.6 mIIIIon).
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Myanmar Summary
Indian Firm to Conduct Mining
Work in Chin Stute
Kyaw Min
A
n Indian company is of-
fering to conduct mining
work in two townships
of Falam and Tunzang in My-
anmars Chin State, state-run
medIu reporLed.
Karam Chang Thapar (KCT)
company is likely to carry out
such mineral exploration work
as on gold, chromites, nickel
and limestone, said the New
IgIL oI Myunmur.
There are nine townships in
Chin except one that can pro-
duce chromite, nickel, iron,
copper, aluminum, limestone,
couI, oII und murbIe.
A number of other private
companies have also sought
permission to do such mining
work in the state, the report
udded.
Following the reforms, Myan-
mar has been encouraging lo-
cal and foreign investments in
mIneruI expIoruLIon.
oreIgn hrms IuvIng beIng
engaged in mineral exploration
~.e~.~~..._ _.,.:.
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~.~~.,_e .q .,.~ ,~e
in Myanmar including com-
panies from Australia, China,
France, Japan Malaysia, Sin-
gapore, South Korea, Thailand,
LIe UnILed SLuLes und RussIu.
OmcIuI sLuLIsLIcs sIow LIuL
existing foreign contracted in-
vestment in Myanmars min-
Ing secLor umounLed Lo $z.q
billion in 11 projects as of the
end of January, accounting for
6.6 percenL oI LIe LoLuI IoreIgn
investment, making it the third
largest investment sector after
eIecLrIc power und oII und gus.
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Seeking Tech Fixes for Aid Projects, Myanmar
Hold First Hackathon
Low phone penetration and spotty Internet access have held back Myanmar, previously called Burma,
but foreign investment and aid could unlock its fedgling tech sector
Casey Hynes
I
ts a Saturday after-
noon and Ye Lin Aung
has been holed up in
un omce uII nIgIL. He und
a group of friends have
been working through
the night on a mobile app
that would help farmers
Lo proLecL LIeIr crops.
They are competing
In Myunmur`s hrsL-ever
IuckuLIon, u q8-Iour
contest to create tech-
based solutions for some
of the countrys pressing
deveIopmenL cIuIIenges.
Ye Lin Aung, a software
engineer, and the other
members of team NilBug
have carved out a work-
space among the other
Iuckers. TIeIr cIusLer
of tables is partitioned
by whiteboards that are
scrawled with notes on
the apps functions and
reminders for the devel-
opers. OLIer groups Iuve
similar set-ups, and a
ready supply of Red Bull
and Nescaf instant cof-
Iee.
It would be a familiar
scene in San Francisco or
New York. BuL noL so My-
anmar, a country where
a slim segment of the
population has access to
phones and the vast ma-
jority of people have nev-
er been onIIne.
After decades of military
rule and isolation, Myan-
mar has begun opening up
to international aid and
InvesLmenL. Ls LeIecoms
industry lags far behind
neighbors like Thailand
and India: mobile phone
penetration is roughly ten
percent; even fewer have
uccess Lo LIe nLerneL.
Despite this low con-
nectivity, Myanmars tech
communILy Is growIng.
Tech events such as this
hackathon, and broader
collaboration between
coders and do-gooders,
may yield technology so-
lutions for development
und IumunILurIun Issues.
The potential to do re-
ally good work, to use tech
to solve real problems, is
so clear, said David Mad-
den, founder of Code for
Change Myanmar, which
helped organize last weeks
hackathon in Myanmars
muIn cILy, Yungon.
Apps for ai d pr oj ects
At the hackathon kick-
o uL LIe IeudquurLers oI
Qatari telecom Ooredoo,
one of the sponsors, rep-
resentatives of Myanmar-
based NGOs laid out the
challenges for the team:
Lo come up wILI u LecI hx
Ior u specIhc Lusk. TIese
ranged from how to reach
sex workers to educate
LIem ubouL HVJADS Lo
crowdsourcing election
monitoring for next years
presIdenLIuI voLe.
Eighty-three people
joined the hackathon and
spIIL InLo 1; Leums. AL LIe
end, a panel of four judg-
es gave each team three
minutes to present their
upp or websILe.
NilBug won the com-
petition with an app that
would allow farmers to
look up which pesticides
were best to use on their
crops, and to swap tips
with other farmers on
pesL prevenLIon.
For participants like Ye
Lin Aung, the hackathon
allowed him to meet tech
professionals who work
in the start-up scenes in
Myanmar and in places
such as Australia and Sin-
gupore. L`s very excILIng
und cIuIIengIng, Ie suys.
While last weeks hack-
uLIon wus LIe hrsL oI ILs
kind, Myanmar has host-
ed other donor-funded
tech events, including
a BarCamp meet-up in
Yangon in February that
drew more LIun ,ooo
purLIcIpunLs. TIe prevI-
ous month, a US embas-
sy-supported TechCamp
brought together more
LIun 1o cIvII socIeLy uc-
tivists for training in tech
skIIIs. BurCump evenLs
have also been held in
Mandalay, Myanmars
second IurgesL cILy.
Theres so much energy
and so much passion and
when you create the right
environment, these young
people in Myanmar just
grab it with both hands,
Mudden suId.
No panacea for
pover ty
While enthusiasts say
that widespread tech lit-
eracy and access could
lead to improvements
In Myunmur`s edgIIng
democratic institutions,
its no panacea for a
country torn by ethnic-
bused conIcLs, grIndIng
rural poverty, and po-
litical divisions that no
smurLpIone upp cun hx.
Twenty-six percent of the
population lives below the
poverty line, according to
LIe UN Omce Ior ProjecL
ServIces. SLurved Ior dec-
ades of investment, public
infrastructure is decrepit
und overwIeImed.
A spokesman from the
US embassy in Yangon
said digital literacy could
supporL eorLs In Myun-
mar toward better gov-
ernance and economic
growLI. L couId uIso boI-
ster education by allowing
schools to connect with
counterparts in other
countries, and improve
communication with
groups In ruruI ureus.
Phil Morle, CEO of Pol-
lenizer, a Australia-based
company that helps start-
ups in Asia and Australia,
believes Myanmar is ripe
for a digital revolution
because of latent inter-
est combined with the on
switch about to be ticked
wILI LIe nLerneL.
New phone li cences
The on switch for
Myanmar is the promise
oI uordubIe mobIIe Le-
IepIony. usL yeur, LIe
government issued two
cellular phone licenses to
Ooredoo and Telenor, a
NorwegIun LeIecom hrm.
Both are now building na-
tional cellular networks
wILI u gouI oI 8o percenL
mobile phone penetration
by zo1.
I think theres an ex-
traordinary shift about to
Iuppen, MorIe suId.
For now, tech develop-
ers struggle with slow
Internet speeds as they
work to build new prod-
ucLs. Ooredoo wIII begIn
rolling out services in
mId-zo1q, uccordIng Lo
Lorna McPherson, chief
murkeLIng omcer uL Oore-
doo Myunmur. TeIenor
has announced plans to
launch mobile services by
the third quarter of this
yeur. BoLI compunIes suy
LIuL wILIIn hve yeurs LIe
vast majority of people
should have access to cell
servIces.
Myo Htet Aung, an
android developer who
participated in the hack-
athon, sums up the atti-
tude of many in the tech
communILy. Iove Lo
share my knowledge in
LIe communILy IIke LIIs...
(but) we still need to do a
IoL oI ImprovemenL.
The Christian Science
Monitor
Myanmar Summary
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
Myanmar Summary
Myanmar Summary
From page ...(IMF)
From page ...(IMF)
Philippines URC Earmarks $30m
for Myanmar Plant
Aye Myat
F
ilipino food and bev-
erage manufacturer
Universal Robina
Corp (URC) is to spend
ubouL $o mIIIIon Lo buIId
a production plant in My-
unmur LIIs yeur.
Michael P Liwanag,
vice-president for corpo-
rate planning and investor
relations, said the com-
pany, a unit of Gokongwei
conglomerate JG Sum-
mit Inc, is proceeding
with plant construction,
according to Philippines
medIu reporLs.
We Iuve uIreudy h-
nalised the contract with
LIe buIIder. LIInk In LIe
coming months, we will
start construction, Liwa-
nag said after the Invest-
menL ASEAN zo1q Con-
Ierence. ConsLrucLIon
will take a minimum of 12
monLIs. L reuIIy depends
on how fast the builder
Is.
He said the facility will
initially produce bis-
cuits like Magic Flakes
and Cream-O, as well as
chips under the Jack N
JIII brund. TIe compuny
Ius seL usIde $o-mIIIIon
investment for Myanmar,
Iwunug suId.
The investment will
be sourced from URCs
$zoo-mIIIIon budgeL Ior
its capital expenditures
LIIs yeur, Ie udded.
Singupore's WPG Iyes Ixtensive
Myanmar F&B Presence
Phyu Thit Lwin
S
ingapore-based con-
glomerate WPG
Group has opened
three fast food outlets in
Yangon in a bid to tap the
rising demand of fast foods
from the recently-opened
Southeast Asian countrys
emergIng mIddIe cIuss.
WPG Group, an invest-
ment company with its
business interests rang-
ing from property, ho-
tels, travel to limousine
services and wealth man-
agement, forayed into
Myanmar with its three
fast food brands The
Big Fryer, Food Talk and
NoodIe KIng.
All the three outlets
are located in AKK Mall,
Thingangyun township,
In Yungon.
The company said it
sees potential for huge
expansion due the cur-
rent reforms and continu-
ous growth in Myanmars
economy, and that it has
already invested heavily
into the F&B business in
LIe counLry.
The company aims to
present fast and delicious
food suitable for all ages in
a comfortable and vibrant
environment, at reason-
able prices, the company
suId In u sLuLemenL.
As part of the F&B de-
velopment, WPG said it
will open its fourth outlet
in Peoples Park by April
und ILs hILI by AugusL In
Ahlone township in Yan-
gon.
Further in the pipeline,
WPG is set to open three
more outlets in Bago re-
gion with the develop-
ment of its new retail mall
LIere, IL suId.
By zo16, LIe compuny
aims to expand its fast
Iood busIness Lo zo ouL-
lets across Myanmar,
WPG suId.
By creating more jobs
and businesses, WPG
hopes to play a part in
contributing to Myan-
mars economy and also
its increasing middle
cIuss, IL suId.
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_.,.:.~ e...~~.
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.q.~_~~ ~ . ~ e~ __e.
. Michael P Liwanag u
Gokongwei conglomerate
J G Summit Inc -e,.~..
_e...: URC ~.~~.,_e
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. q, _~ ... ...: q ~ .,_. _e.
._~:. ._.:_~:..._. ..~
~.,_e .~,~_..:~.
~~~ ..:~...q...,.
..:q~q, ~_...~..:
~ _ . ~ qq . _. ._e. ._~: . .:
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~._.:_~:.. ._ .
for dialogue between the
Iund sLu und u member
country on its economic
poIIcIes.
IMF said growth of
credit to the private sec-
tor is projected to mod-
erate from current high
levels but remain rapid at
uround o percenL. L ex-
pecLs LIe hscuI dehcIL In
Yzo1J1q Lo be broudIy
in line with the budget
LurgeL oI percenL oI
GDP, buL IuII Lo q. per-
cenL In Yzo1qJ1, us u
resuIL oI one-o revenues
from telecommunica-
tions licences, which were
uwurded eurIIer LIIs yeur.
Myanmar current re-
cent economic reforms
IncIude udopLIng u ouL-
ing exchange rate and
removing exchange re-
strictions; establishing
an autonomous central
bunk; und sIgnIhcunLIy
increasing spending on
IeuILI und educuLIon.
However, InuLIon Is
expecLed Lo exceed 6 per-
cenL by end Yzo1J1q
and remain elevated in
Yzo1qJ1.
IMF said risks to the
outlook arise largely from
limited macroeconomic
management capacity
and thin international re-
serve cusIIons.
nuLIon remuIns eIe-
vated and there are pres-
sures from rapid money
and credit growth, kyat
depreciation and possi-
bIe eIecLrIcILy prIce IIkes.
International reserves are
still low and vulnerable to
shocks, the lender said
In u sLuLemenL.
IMF projected the exter-
nuI currenL uccounL dehcIL
to widen further to about
percenL oI GDP In LIIs
perIod. As u resuIL, LIe
Central Bank of Myanmar
(CBM)s accumulation
of international reserves
durIng Yzo1J1q Ius
been slower than project-
ed, but is hoped pick up in
Yzo1qJ1 us IoreIgn dI-
rect investment and other
Inows ouLweIgI LIe cur-
renL uccounL dehcIL.
IMF praised Myanmar
on achieving some quan-
titative and structural
benchmarks including
building the CBMs re-
serves, maintaining an
upproprIuLe hscuI dehcIL,
liberalising the foreign
exchange market, and
building monetary and
hscuI poIIcy LooIs und In-
sLILuLIons.
Capacity constraints
moderated achievements
in some areas but pro-
gress continues to be
mude, M suId.
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A food and beverage production Iine.
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WPC Croup's outIets in Yangon.
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
Myanmar Summary
Cotting OH Oor Nose to Spite Oor Iuce in Myunmur
Stanley Weiss
O
ne of them has
helped reforest
environmentally
threatened regions and
donated money to assist
children with Down syn-
drome. A porLIon oI every
ticket his airline sells goes
to social welfare organisa-
LIons. And wIen CycIone
Nargis devastated Myan-
mur In zoo8, IIs Ioun-
dation contributed more
LIun $8 mIIIIon Lo rebuIId
schools, hospitals, and
monusLerIes.
The other has footed the
bill for school fees and
medical expenses for the
families of Myanmars
poIILIcuI prIsoners. He Is
actively recruiting doc-
tors from other nations to
improve the health care
system here, and over-
sees the only national
institution the Myan-
mar football league in
which ethnic minorities
participate on an equal
footing with ethnic Bur-
muns. And uL u LIme wIen
corruption threatens to
derail this countrys nas-
cent democracy, he is the
IIgIesL-prohIe busIness
leader to have opened his
books to an internation-
ally-respected accounting
hrm und LIen personuIIy
presented the full audit to
United States Ambassa-
dor Derek MILcIeII.
Which is not to say that
Tay Za and Zaw Zaw, two
of the most successful
businessmen in Myan-
mur, ure Boy ScouLs. Over
the past two decades, the
head of the Htoo Group
und LIe q6-yeur-oId cIuIr-
man of the Max Myanmar
Group built their vast con-
glomerates of companies
stretching from banking
to hotels to construction
by thriving on connec-
tions they developed with
a regime notorious for hu-
mun rIgILs ubuses. TIose
contacts landed the two
on the US governments
Myanmar sanctions list,
which bans American in-
dividuals and companies
from doing business with
any friends of the old re-
gIme.
But when the generals
traded their uniforms for
cIvIIIun cIoLIes In zo1o,
the US government lifted
sanctions on many mili-
tary leaders but kept
the blacklist in place for
people like Tay Za and
Zuw Zuw. L`s u IILLIe IIke
letting Al Capone go scot-
free while continuing to
punIsI IIs uccounLunL.
This is the farce that US
sanctions on Myanmar
Iuve become. Zuw Zuw,
a man who has created
jobs Ior more LIun 11,ooo
people and, in journal-
ist Erika Kinetzs estima-
tion, is widely regarded
as among the cleanest
of the bunch is on the
list, along with Tay Za and
ubouL 1oo oLIer busIness
Ieuders. BuL us KIneLz und
reporter Matthew Pen-
nington have written,
LIe IIsL Is IuII oI gups. L
Ieuves o, umong oLIers:
a top ministers son and
suspected arms dealer
who supplied weapons
to North Korea; the wife,
children and grandson
of brutal former military
leader Than Shwe, and
the sons of a former hard-
line leader accused of at-
tacking opposition leader
Aung San Suu Kyi, killing
a number of her support-
ers; and sons of top lead-
ers who have amassed
tens of millions of dollars
In LIe IIIeguI LImber Lrude.
Meanwhile, Tay Za
consIdered Burmu`s hrsL
billionaire, despite the
sanctions notes that
while the US continues
to punish local business
leaders, theyve taken no
ucLIon ... uguInsL CIevron
and Total, the two promi-
nent Western energy
companies that are mak-
ing billions of dollars an-
nually from their natural
gus projecL In Myunmur.
Indeed, Chevron and To-
LuI were jusL oered con-
cessIons Lo expIore o LIe
cousL oI Myunmur.
A sanctions list that
punishes cronies but re-
moves thugs makes no
sense, morally or eco-
nomIcuIIy. L perpeLu-
ates a false standard and
begs the question: what
does the US really want
to achieve in Myanmar?
If the answer is, to cut
o our nose Lo spILe our
face, then mission ac-
compIIsIed.
All it does is put US
busInesses uL u sIgnIhcunL
disadvantage, while driv-
ing investment to other
counLrIes. TIe EU und
Australia which togeth-
er had over a thousand in-
dividuals and companies
on their sanctions lists
lifted their sanctions
beLween zo1z und zo1.
Asia has no restrictions
on or qualms about work-
ing with anyone in Myan-
mur. MeunwIIIe, US busI-
nesses are barred from
working with some of the
very people who are most
central to the success of
LIe Myunmur economy.
The American Cham-
bers of Commerce here
is asking why these sanc-
tions are being kept in
place, a local venture
cupILuIIsL LeIIs me. TIey
wunL cIurIhcuLIon. TIey
raise this issue with every
State Department visitor
LIuL comes Lo Myunmur.
The EU has no list and
Accor Hotels has part-
nered wILI Zuw Zuw.
A major reason, as
usuuI, Is Congress. TIe
US is a prisoner of a
congressional prison, a
European ambassador
suys Lo me. A senIor Io-
cal businessman adds,
The Obama administra-
LIon Iud Lo hgIL LIe reur
guard of people support-
ing sanctions in the US
and couldnt just turn on
the switch so they said
We are open for busi-
ness but not with the bad
guys. eL`s noL gIve up our
AmerIcun prIncIpIes.`
One anonymous senior
SLuLe DepurLmenL omcIuI
quoted by the AP last year
oers u Iess encourugIng
ruLIonuIe. TIe suncLIon
list doesnt allow for re-
dempLIon, Ie suId. L
is designed to hold peo-
ple accountable for past
wrongs, regardless of
whatever good work they
muy be doIng now. WIIIe
its true that accountabil-
ity is important, a sanc-
tions list that leaks like
u sIeve und oers scuL-
tershot accountability is
no way for the US to en-
courage a democratic and
prosperous Myunmur.
A UN omcIuI expIuIns
exactly how this selec-
tively punitive black-
list impedes such good
work. TIe US cume Lo
me Lo work on u Lrumck-
ing project and needed
u proposuI, Ie LeIIs me.
They liked it, but once
their lawyers reviewed it
they rejected it and said
you cant train cronies
und mIIILury. suId, 'LIInk
ubouL wIuL you`re suyIng.
They are key to stopping
LrumckIng. TIey cume
back and said, OK for the
training but we cant pay
Ior LIeIr IuncIes.` Now,
dont call it training, I call
it seminars and they al-
Iow LIuL.
Its time for the US to
follow the EUs lead and
lift its sanctions on My-
anmar and move people
like Tay Za and Zaw Zaw
from a blacklist to the top
of the list of people we
work wILI. As u busIness-
man friend tells me, The
cronies here are doing
some good things and the
counLry needs LIem.
The US should also
reconsider its policy of
punishing the children of
sanctioned individuals by
refusing to let them travel
Lo or sLudy In AmerIcu.
Why push the next gen-
eration to study in China
and Russia? Instead, we
should be giving them a
chance to learn about free
murkeLs In u Iree counLry.
Above all, the US, a na-
tion built by slavehold-
ers and robber barons,
sIouId sLop preenIng.
There are no angels in
countries with Myan-
mur`s IIsLory. Even LIose
with shady pasts can still
help Myanmar walk out
into the bright sunlight of
u new duy.
Stcnle Weiss, c lobcl
mining executive and
founder of Washington-
based Business Execu-
tives for National Se-
curit, hcs been uidel
published on domestic
and international issues
for three decades.
HugPost
., , .:.e .~ . ~ _. .. :.
q._ _.,.:.- ~....:
. ..:q .~ .:._e. ._ ..~~
. ..~: .~: ~ . . .~,~ .
~..._ .:~.~~,.~
, .. . ...: .q :~ . ~~ ~_
.:. ...~.... Down
syndrome .~.,:..:..,q
..:~...e . :.~ ._ .
.:~ . q, ~~ ~ . ._~.~~
~_.:. ...~..._. ~~
... ,:..~~.,..,~.
_e..:.._..~. , ~ ..~~-
..e:...q.. .~:..:.
...,.:. ,._~..~:..:.
_.,._~_..:~q,~~~
~..q ~, ..'.: q. ., ..~:
~,e.q._ ~~~_.:....
~..._. ..~:.~:.:._.
_., .:. . . .q.~~ ..:.
.:.-. .:.. .:.~~ ~ .~: .
.:.q ~ . ...~|.. .. . .:.~~ ~
~~~_.:....... ~_.:.
. .:.. .q:~, .:.~ ..'e
~: _.,.:.~ ~,..:.q.
..: .q :~ . .,. .:.~ .~~ q,
~~ ~ _~ ... .. .. _., .:.,q
,e.~._. ~_.:.
._. ~..|~.,._ _.,.:
. -. . ~.q. ~._.:.~. ~
~~ .~ _..:.. .:.~_. . .._.:~
.,._ ~. , _ e. ..: ._ .
..~:.~:.: ~_.__._.q:
. ....:.. ~ qq :.._ .:q .
.. . . , .~. . ~:. , .-_:
.q......~.~_ .
. . _ . .:. : e _ .. ._ .
..~~. ..~: .~: ~ ._
_.,.:.~ .~:_..~q
.. ...:..q...,.q.:._e.
_~._..,...: .e...
...~~. Htoo Group -
~_~.~~_e.. ..~~.
Max Myanmar Group -
~ __e. _. . ~.~ ,' . . ~q e
q._ ..~:.~:~._ ~
..,. ..:~...q..._
e~e..,..:.~ ...:.
.q...,..:.~ ..:q~.
._ . .. ~. .q.~ ~ ~
..~..q.~~ ...:..q...
,..:...:q~._.. .~.
~.q.. ..e:~ ._ e ._
~.~ .:._e ..~~. ..~:
.~:~.: ~..q~,- ~..
... ~.~.:.. ...:..q.
. ...| .. . ..: . .q ._
,:._ .~ .:q .~ ~, q .,.
_e.._.~~~ ...~ ~q.
~ ~. .q~~ .:. ..: ._ .
..~..q.~~~ -...
_~ ..:..|~ .,. . _e. ._ .
~..q~,~..q. ..~..q
..|...:.:.~:. ...:..q.
. ~ . . .:.~ ._e..: .... ..:
._. ..~~. ..~:.~:~
. . .:.~:. ~._ ._..:q .
. .e ~ , ,:._ .~ .:q .~
_ . .:.. _ e. ._ .
~.~.: Al Capone ~:.
. ~ ..._. . , .-.:q .~ ~:.
~_.. ...._ . . . ~.:.._:,
~ .,._ .
The US, a nation built by slaveholders
and robber barons, should stop preen-
ing. There are no angels in countries
with Myanmars history. Even those with
shady pasts can still help Myanmar walk
out into the bright sunlight of a new day.
Zaw Zaw, one of Myanmar`s youngest but best-connected tycoons. As the country starts to open up after
decades of miIitary misruIe, a wave of crony capitaIists are repositioning themseIves as the fresh new
faces of Myanmar Inc.
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Contd. P 24...(Survey Finds)
Myanmar Summary
Pun Pucic Opens Cupitul's Iirst
International Hotel
Parkroyal Nay Pyi Taw aims to tap visiting dignitaries and high-profle guests
Kyaw Min
S
ingapore-based Pan Pa-
cIhc HoLeIs Group (PPHG)
Ius omcIuIIy opened LIe
hrsL InLernuLIonuI IoLeI In My-
anmars capital Nay Pyi Taw,
PPHG unnounced.
TIe 18o-room PurkroyuI Nuy
PyI Tuw opened wILI qo rooms,
with the remainder expected to
be fully operational by the end
of this year, said PPHG, which
is a wholly-owned hotel sub-
sidiary of Singapore-listed ho-
tel and property company UOL
Group Ld.
The launch also makes Park-
royuI LIe hrsL InLernuLIonuI Io-
tel brand in Myanmar to have
presence in two major cities
Yangon, the commercial centre,
and Nay Pyi Taw, the adminis-
LruLIve seuL oI LIe governmenL.
TIe IoLeI oers un uII-duy
dining restaurant, spa, gym,
swimming pool and a range of
meeLIng IucIIILIes.
Nay Pyi Taw is the third larg-
est city in Myanmar and has
been listed by CNN as one of
the worlds fastest-growing cit-
Ies. As LIe cupILuI, Nuy PyI Tuw
is expected to host a series of in-
ternational events, starting with
the ASEAN Leadership Forum
In Muy.
Set within spacious land-
scaped gardens, the hotel is
located within the vicinity of
the Myanmar International
ConvenLIon CenLre, LIe omcIuI
venue of government functions,
and the hotel said it anticipates
being the accommodation of
choice for many foreign and lo-
cal dignitaries who are expect-
ed to join the slew of meetings
set to take place this year due to
Myanmars ASEAN chairman-
sIIp.
Parkroyal Yangon, which was
established over 12 years ago,
is also undergoing a series of
renovations this year to refresh
its lobby, dining spaces as well
as meeting and entertainment
IucIIILIes, LIe IoLeI suId.
The opening of the hotel un-
der a management contract,
and the refurbishment of Park-
royal Yangon come on the heels
of another recent development
oI LIe group In Myunmur.
Last November, PPHG an-
nounced a conditional joint
venture with local property gi-
ant Shwe Taung Group to de-
veIop LIe hrsL Pun PucIhc IoLeI
In Myunmur. ScIeduIed Lo open
In zo1;, LIe q8-room Pun Pu-
cIhc Yungon wIII be IocuLed op-
posite popular tourist attrac-
tion Bogyoke Aung San (Scott)
MurkeL.
As an early and success-
ful player in Myanmars hotel
IndusLry, Pun PucIhc HoLeIs
Group is keen to capitalise on
business opportunities within
LIe ourIsIIng LourIsm secLor
to solidify our position as one of
the leading international hotel
operators in the country, said
Bernold O Schroeder, chief ex-
ecuLIve omcer oI PPHG.
The opening of Parkroyal
Nay Pyi Taw in such a promi-
nent location in the capital will
give the brand greater visibility
and boost the groups Myanmar
porLIoIIo.
We look forward to harness-
ing our in-depth market knowl-
edge and strong reputation to
win over more travellers with
the quality accommodation
and personalised service that
we have become trusted to pro-
vIde.
PPHG said it continues to
seek expansion opportunities
in key destinations for both city
und resorL IoLeIs In Myunmur.
EIsewIere In AsIu PucIhc, LIe
group Is Lo open ILs hILI prop-
erLy In CIInu - Pun PucIhc Ho-
tel and Serviced Suites Tianjin
- IuLer LIIs yeur. By zo1;, IL Is
uIso scIeduIed Lo IuuncI hve
more Pun PucIhc und PurkroyuI
hotels in Australia, China and
ndonesIu.
PPHG owns undJor mun-
uges cIose Lo qo IoLeIs, resorLs
and serviced suites with some
1z,ooo rooms IncIudIng LIose
under development in Asia,
Oceania and North America un-
der two brand names Pan Pa-
cIhc und PurkroyuI.
The Iobby o ParkroyaI Nay Pyi Taw.
P
a
r
k
r
o
y
a
l
. ~:. ~._.. ~ Pan Pacifc Hotels
Group (PPHG) ._ _.,.:.-
_..~: .,_._.~:~ .....
~_._ _._ . q:e ~e ~. . ~ ~q:.
~e...._~:. PPHG . ~_.,
._~_:.._..,_._.~:_ e...
..: ~. .| Parkroyal Nay Pyi Taw
e~e._ ~.,...|. ~~ q._
_e.~: e.~.| ~.,...|. ~ ~:.
~.._...__e._.. e...~,~
~.,.~:...~ ~,..:.....q,
..:.,.:.._~:. PPHG . ._.:
_~:..._. e.~. .,_._.~:~
e ~e .. ~:. e . . _ . .~:._ e
Parkroyal ~~ ~ _., .:. - ~. ~
_._~...._e...: q,~,. .,_._
.~: ~ ~_._ _._ . q:e ~e .:.
~:. e . . . ._ .. .. .e ~e
. . , .~. . ._ ._e. .:._ _e. ._ .
~..|e~e~ _.:.:.q, .:.
..:~. ~.~.,......q:
.,q: ~ e .~ . . q :.~:.~.:.,
.q~ .~, . .~ . .. ... .. .:._.. .
. ._ ~., .~, ..: . .:.._ .q ._
e .q._.
.,_._ .~: ._ _., .:. ~ ~~ e
~_~ .. ._. ~. _. _e. _. . CNN . .:q .
_..:.._~.:e_e.~.~~.~_.,
.._..:..:q.~_.~._.._._e.
._ . _., .:. -_. .~: _e. ._ ~:.
..:.: .,_._.~:~ ~_.__._
.q:.~.~..:.~ _....:.q,
..: . , .:.q_. ....~ ._. ASEAN
Leadership eq.~ _....:..__e.
._~:. .q._.
.,...: ~ ...~:~ ~_
.: e . . . ._ Parkroyal Yangon
._ e. . . ~ _., ._ _. . . . ..
~: ~. _. ~ . .:._.. . .,._~: .
._. .q._.
Average Billionaire Now Owns Four
Properties Worldwide, Sorvey Iinds
Aye Myat
T
he average bil-
lionaire owns four
homes, with each
one worLI 1z. mII-
IIon ($zo.; mIIIIon), wILI
most having one in a lead-
ing city and also a dream
weekend of holiday home,
new reseurcI sIows.
Contrary to urban myth
that billionaires live in
James Bond style prop-
erties, most choose large
traditional family homes,
typically six bedroom
city mansion, the survey
from Beauchamp Estates
sIows.
Some ; percenL uIso
have seven to 12 bedroom
holiday home or four bed-
room plus huge apart-
ment or penthouse in a
city such as London, and
tend to avoid bachelor
puds.
Amongst Western Eu-
ropes capital cities, Lon-
don is the favourite bil-
lionaire property hotspot
wILI 6; bIIIIonuIres IIvIng
in the city, ahead of Paris
on z und Genevu on 18.
The Ultra Prime Barom-
eter survey reveals that
a billionaire will spend
1o mIIIIon or more on
a London property, with
their typical home in the
capital being either a
mansion in the platinum
triangle formed by May-
fair, Knightsbridge and
Belgravia, or a palatial
residence in the St Johns
WoodJRegenLs Purk ureu.
n SL JoIns WoodJ
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
24
PROPERTY & REAL ESTATE
Myanmar Summary
IFC Taps Myanmar Hotel Infrastructure
with $80m Loan
Eyes business-enabling infrastructure, tourism boost
Wai Linn Kyaw
I
nternational Finance Cor-
poration (IFC), the private
sector lending arm of the
World Bank Group, will give
$8o mIIIIon Lo subsIdIurIes oI
Hong Kong-based hotel owner
and operator Shangri-La Asia
Ltd to expand the latters hospi-
LuIILy busIness In Myunmur.
The Washington-based lender
said the loan will improve the
countrys business and travel
infrastructure by providing
international-standard rooms
and conference facilities, boost-
ing Myanmars tourism sector,
contributing to its economic
dIversIhcuLIon und susLuInubIe
growLI, und creuLIng jobs.
IFCs investment will be used
to complete the renovation
at the Traders Hotel Yangon,
majority-owned by Shangri-La,
and also increase its capacity
Irom z;o Lo q8 rooms.
IFCs investment will also be
used to complete construction
of the Shangri-La Residences
Yungon, u zqo- upurLmenL
buIIdIng, LIe Iender suId.
Both projects are expected
Lo be hnIsIed In zo1q, und ure
expected to meet the acute de-
mand for hotel rooms and ser-
viced apartments from business
travellers and expatriate work-
ers.
International arrivals in My-
anmar have increased by about
o percenL u yeur sInce LIe
economy opened, surpassing
one mIIIIon Ior LIe hrsL LIme In
zo1z.
This investment continues
our relationship with IFC to-
wards developing the hospital-
ity industry in a challenging
country environment in South-
east Asia, said Madhu Rao,
cIIeI hnuncIuI omcer oI SIun-
grI-u, wIIcI Is o-percenL
owned by Kerry Group Ltd, a
conglomerate based in Hong
Kong that is controlled by Ma-
IuysIun Lycoon RoberL Kuok.
The projects key locations in
the central business area of the
countrys most populated city
Yangon, along with Shangri-
Las quality, will set a bench-
mark and raise the quality of
servIces uvuIIubIe IocuIIy.
IFC said it will work closely
with Shangri-La to ensure that
international environmental,
health, and safety standards are
udIered Lo uL LIe sILes.
The lender said the renova-
tion and construction projects
are providing jobs for more
LIun 1,ooo IocuI workers. AbouL
6oo permunenL empIoyees - oI
whom about one-third are ex-
pected to be women have been
hired and trained in hospitality
Lo operuLe LIe properLIes.
At a time of growing econom-
ic interest in Myanmar, it is cru-
cial to increase access to much
needed business-enabling in-
frastructure to attract more in-
vestors and travellers, as well as
helping place Myanmar on a par
with other commercial hubs in
the region, said Vipul Prakash,
IFC Director for Manufactur-
ing, Agribusiness and Services,
AsIu PucIhc regIon.
The operation of internation-
al standard hotels and serviced
apartments will help generate
jobs and provide supply chain
linkages to local farmers and
suppliers, thus boosting the
tourism sector and contributing
Lo economIc dIversIhcuLIon und
susLuInubIe growLI.
Since the lapse of sanctions,
~. :~~e~._._~.-~e~
_e...: IFC ._ Shangri-La
Asia Limited - ..,...:.~:.
.... ~..q~,..'.: ~ .,.
~~ ~_ ...:._. . _., .:. ~
e ~e .q .. :.. . , ..:.~:. ~ .~~
.:..q,~~~_e.._~:. .q._.
~..|....._~: _.,.:.-
e ~e . .q .. :.~._.. ~..:~ ~~
~_~ ~_._ _._ . q:~. ~~, ..
~.,..:.~:. .:~.....:.._
_e.._~~~ _.,.:.-.q.. :.
..,.~~~ ~.,.~:.. ,..:
~. ~.. ..~: .~. q. . _e. ._ .
_. ~_~.~ e_e.~.~~.
.qq_~_~.. ~..~~~.
~.. ..~: ..:.._ ...' ~ .:.
._._e.._. IFC - q..._....
.:.~ q,~,_.q ~,.__~..:.
e~e~:. _.,.__.......~
_. .. .q, ~~ ~ ~. ._.. :.._ _e. ..
~., ..:.~ ._ . ~ . , ., .~
~...:..__e.._~:. .q._.
Shangri-La ._ ~,.__~..:.
e ~e -~. ~. . . _e. _. . IFC -
q .. ._. . . . ~ ._ . q, ~ , q Shangri-
LaResidences ~_ ..:~ . _. .. .q,
~~ ~ ~. ._.. :.._ _e. ._~: . . q
._.
A generaI view of Traders HoteI, majority-owned by Hong Kong-based hoteI owner and operator Shangri-Ia Asia Itd, in cen-
traI Yangon. Part of an $8U-miIIion IFC Ioan wiII be used to compIete the renovation at the Traders HoteI Yangon.
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IFC, together with the World
Bank, has been extensively in-
volved in reforms and invest-
menLs In Myunmur. n Y1,
IFCs investments climbed to
un uII-LIme IIgI oI neurIy $z
bIIIIon.
Regents Park, the typi-
cal ultra prime mansion
cosLs zz. mIIIIon, Is
8,q8 squure IeeL In sIze
und uveruges z,z; per
squure IeeL. WIIIe u Muy-
IuIr munsIon cosLs z1.;
mIIIIon, Is 6,8zo squure
feet in size and averages
,z1; per squure IeeL.
The average London ul-
tra prime residence has
six bedroom suites, four
recepLIon rooms, some q6
percent have an outside
gurden, q percenL u prI-
vuLe swImmIng pooI, q
percent a private cinema
und q percenL u guLed
drIvewuy.
Amongst the European
beachfront, island and
rural estate holiday loca-
tions, the French Riviera
is the top property hot-
spot for billionaires with
un esLImuLed q IuvIng
From page z...(Survey Finds)
homes in the region, with
other popular locations
including Tel Aviv in Is-
rael with 17, Tuscany with
14, and Greece and the
Greek islands with nine
bIIIIonuIres.
The typical French Rivi-
era ultra prime home is a
modern refurbished villa
with sea view valued at
uround 18.6 mIIIIon,
provIdIng 6,11 squure
IeeL oI IIvIng spuce. L
has six to seven bedroom
suites, four reception
rooms, und qo percenL
Iuve u swImmIng pooI, q8
percent a private gymna-
sium and 7 percent a wine
ceIIur.
The property is typically
seL In o. IecLures oI Iund.
The average Riviera ultra
prime home has a value
oI ,1q per squure IeeL,
although values of up to
6,86 per squure IeeL
have been recorded in the
ureu oI Monuco, reecLIng
the fact that some trophy
locations along the Rivi-
era can be as expensive as
prIme cenLruI ondon.
In Tuscany billionaires
get a lot more land and
property for their money
with the typical Tuscany
ultra prime home costing
1z.1 mIIIIon yeL provId-
ing 74 hectares of land, a
1,o8 squure IeeL Iouse
wILI 1z bedrooms, hve
main rooms and a private
swimming pool, vineyard
or oIIve grove.
Where these types of
Tuscan estate are pur-
cIused, 8; percenL wIII
have undergone substan-
tial restoration and mod-
ernisation to turn them
into a billionaires pad,
with state of the art com-
munications and security
sysLems.
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Myanmar Summary
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April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
Myanmar Summary
Myanmar Summary
Mitsubishi Motors Corp's vehicIes are seen at the company headquarters in Tokyo. Mitsubishi Motors Corp said on Wednesday
it wouId aim to boost operating prot by more than one-third to 135 biIIion yen ($1.37 biIIion) over the next three years as
part of a mid-term business pIan through March 2U17.
Mitsubishi Motors Buys Ford Plant
in Philippines in SE Asia Growth Push
Pann Nu
J
apans Mitsubishi Motors
Corp said it has bought the
site of a former auto plant
in the Philippines from Ford
MoLor Co, beehng up produc-
LIon us IL LurgeLs u neur-o per-
cent sales boost in fast-growing
SouLIeusL AsIu murkeLs.
Mitsubishi Motors, the sec-
ond-biggest automaker in the
Philippines by sales volume af-
I
s
s
e
i
K
a
t
o
/
R
e
u
t
e
r
s
ter Toyota Motor Corp, said it
will centre its Philippines pro-
duction at the plant in Laguna
Irom Junuury zo1. TIe pIunL
will have an annual capacity of
ubouL o,ooo veIIcIes, grudu-
uIIy rIsIng Lo uround 1oo,ooo
veIIcIes.
As part of the strategy, the
auto maker will close and sell
its ageing existing Philippines
plant in Rizal, spokeswoman
Tomoko Kuwube suId. MILsubI-
shi Motors declined to say how
much it paid to buy the Laguna
plant, where Ford made sports
utility vehicles until December
zo1z.
The move by Mitsubishi Mo-
tors, maker of Triton pickup
trucks and Outlander SUVs,
adds to growing competition
among global car makers in the
populous Southeast Asia re-
gion, dominated by Toyota and
oLIer Jupunese cur mukers.
We are planning to prepare
for future growth in the Phil-
ippines, whose auto market is
likely to continue grow sustain-
ably, the company said in a
sLuLemenL.
For second-tier car makers
like Mitsubishi Motors and
Suzuki Motor Corp, Southeast
AsIu oers u mujor opporLunILy
as they seek to compensate for
shrinking sales in their ageing
domesLIc murkeL. TIe regIon
now accounts for a quarter of
Mitsubishi Motors global vehi-
cIe suIes.
Mitsubishi Motors has a plan
to expand regional sales by 44
percent over three years to end-
MurcI zo1;. n LIe PIIIIppInes
it currently makes vehicles in-
cluding the Lancer EX sedan
und LIe AdvenLure SUV.
Non-Japanese car makers are
also seeking to build up their
regIonuI presence. usL yeur,
VoIkswugen AG VOW_p.DE
set up distribution channels in
Philippines, while General Mo-
Lors (GM.N) Ius been sLeppIng
up ILs eorLs Lo seII curs In LIe
regIon IncIudIng ndonesIu.
In Thailand, MMC has invested
over oo mIIIIon buIL ($16.1 mII-
IIon) esLubIIsIIng ILs hrsL R&D
test course outside Japan part
of its business plan New Stage
zo16. TIe IucIIILy Is IocuLed In
Nhongkham Amphur, Chonburi,
ubouL z6km Irom LIe uem CIu-
bung ndusLrIuI EsLuLe.
Mitsubishi Motors Philippines
Corporation (MMPC) ._ Laguna
_._,e~~_q._ Ford Motor
Company Philippines . .~,.,q:
~..~ ~ee.._~:. .q._.
~..|.,q:. ~._..~,.. .~,
~:. .q ._.:..__e.~: ~~ ...
~, ,~|q .~ ~ . . . .:.~ _.. .
. :.eeq.,._.~. ~...
... ~:. ~ . . . .:.:... ._
Mitsubishi Motors Corporation
(MMC) - .,:~.~.e~.~
~:.. . . :. .q. ~. ~. _ e. ..:
New Stage 2016 - ~.~~..~.
q._e.._~:.._. .q._.
Lancer EX Adventure compact
MPV . L300 ..:.~:~:.~..
~.:.~~ e.... ~ ~..
. _. ._e. _.. . , . ._ . .~ Mitsubishi
._ ~ ... q:..,. ...~~
qee:qq.._~:. .q~: ..:.~:
~:.~...q..|. ,,'~ ...q:...
q._ . ~_. .. ~ ._ .
~. ~~ ..e.~: q.. ~
... , ..e, ~:. q..._...:.
._~:. .q._.
Online Car Market Revs up Tech Race
A screenshot of the MyanmarCarsMarket website.
M
B
T
Phyu Thit Lwin
O
nline car marketplace
MyanmarCarsMarket
has upgraded its por-
tal to utilise state-of-the-art
technologies in a bid to grab a
bigger share of the burgeoning
auto market pie in Myanmar,
LIe compuny suId.
As Myanmar opens up to the
rest of the world, the way busi-
nesses and consumers interact
with each other is expected to
change dramatically, especially
with the rapid introduction of
new telecommunications, mo-
bIIes und InLerneL servIces.
The site will now use technol-
ogy that comprise multi-tier ar-
chitecture, agile methodologies
and a well-designed universal
relational SQL database, which
will be able to support mil-
lions of users, customers and
hundreds of thousands of on-
line advertisements nationally,
across multiple languages, the
compuny suId In u sLuLemenL.
With the introduction of the
new Telcos Telenor and Oore-
doo combined with our two ma-
jor local operators MPT and
Yadanarpon, the business land-
scape is going to go ballistic like
it already has in other emerging
countries around the world,
said Hein Thet Khin Zaw, own-
er of local company myOpen-
ware, which has developed the
cur deuIIng porLuI.
Weve already seen a sig-
nIhcunL uprIse In our user buse
and advertising volume in the
last year, and we want to be at
the forefront of this growth by
investing in our systems, tech-
nology and supporting our cus-
tomers with continued free car
udverLIsIng servIces Ie suId.
He said myOpenware intends
to release a number of new high
tech products and services to
support its vision to be the
number online advertising play-
er in the country in the coming
years, including multiple device
support as well as online trans-
ucLIons LIrougI LIeIr sysLems.
The company stated it has
had numerous IT professionals
working on its new websites in
the last 12 months in order to
prepure Ior sIgnIhcunL growLI
In LIe comIng yeurs.
It said it is currently recruit-
ing senior sales and marketing
personnel, and plans to look at
actively partnering and working
with key players in their mar-
kets to support growth, includ-
ing hoping to attract new inves-
tors to share their vision and
growLI sLruLegy.
This is the time for growth
and investment in our systems,
were grateful to all our custom-
ers on MyanmarCarsMarket
and MyanmarJobsMarket and
to Myanmar for opening up the
tech race in our country, Khin
Zuw suId.
_., .:. ._ ~ .|.e ~|.~ . ..
_...,:~.. ~_.:.~.:..:..
.~.e.q.:.~. ...:..q...
,..:.. .:.....q.q:~_.,~.,
.~.e..:..:._. ._.:...:.
._. ~.._e .~.e.q.,_.
._:...:. ..e,..:.. ~ ~:
,~ ~, ..: . .:. ._~: ~ .
._ .: .. .:_ . . _ e. ._ . www.
myanmarcarsmarket.com ~:. _._
~..,.~..,.q~... .
. ~: . . , ...: q~ .,._ _., .:
.~._..~ myOpenware ~.~
. ~.~:~_.e:..:q~._..
_e.._.~..|~~.~~ ~.:
...~~~ .,:~....'~._.
,_.._:.:...~.~._.~.
~.~~.~.:.~._. .q...
~.~~.,_e .~.~.~~.~
,_.._:~..~._:q.:..~~
~~ . ~ ~.. .:.~:. .: q,
~~~ .,...: ~ .~~_.~
_ ~ ... ...: q ~ .,._ . . _.:.
.~: ..q~:_~ ..:._e. ..: Telenor
Ooredoo ~~_. _._~.. _.,.:
.~ . e .q.. q~,:. ~e . . ~ ~
...,._~..:.. .~.e.q.~_
~ ..: q ~ . q .,._ ~~ ~ ~_.:.
e_e....:.~.. ...:..q..
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._~:. ..~-.,..:. ,_.._:.:.
~:. q..._..._.._e ..~~.,_e
e. e _e .~ .~~ . ~ .~ .~ _e. ~_
.._~:. ..~-.e:~._.:.~:.
~..~:. ._~:_:~,..:..:._e
.:~ . ...q, _e. ._~: . _._ ~ .. , .
~ . . , .q _e. ..: e , ..~ .
.~:~ ._.:_~:..._~:. .q._.
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
26
INTERNATIONAL AND DOMESTIC FLIGHT SCHEDULE
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir
TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
*PPleaasee noote thee dday change for the deparrture time too Hong Kongg.
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 13:00 14:00 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
27
Myanmar Summary
Contd. P 28...(Myanmar's Mobile) Contd. P 28...(Myanmar's Mobile)
Myanmars Mobile Phone Revolution
It is one of the worlds least connected nations. But all that is about to change
Michael Peel
A
s elections approach,
providing a mobile
phone network would
boost the governments popu-
larity
Even the white cattle are fad-
ing from view in the gathering
dusk of this riverside Myanmar
village, the tiny lamps hanging
from the traditional wooden
stilt houses the only defence
uguInsL u nIgIL wILIouL IIgIL.
Soon the noises of quiet conver-
sation and religious devotion
wIII be LIe onIy sounds hIIIng
the sensory gap the darkness
leaves in Mwe Pon Kan mak-
ing this rural idyll ripe, in the
newly opening Myanmar, for a
communIcuLIons revoIuLIon.
This is the market we need
to serve, says Petter Furberg,
country chief executive for Nor-
wegian telecoms company Tel-
enor, who is visiting this com-
munity in the countrys central
beIL Ior LIe second LIme. TIere
is no electricity here, no road
und no coveruge.
He exaggerates slightly you
can get a jumpy signal on the
old state MPT mobile system
if you hang out by the river
bank but his remarks are true
enougI. TeIenor Is rucIng wILI
its rival Ooredoo of Qatar to be
LIe hrsL Lo roII ouL u LeIecoms
network in Myanmar later this
yeur, u dehnIng momenL Ior u
country shuttered by decades
of insular dictatorship and
still with a mobile penetration
ruLe esLImuLed uL onIy 1o per-
cent, three years after the junta
sLepped down.
Its a story not just of frontier
capitalism in one of the worlds
least connected nations but of
Myanmars direction as it ap-
proaches landmark elections
nexL yeur. TIe InILIuI eupIorIu
over the militarys decision to
loosen its grip and hand power
to a quasi-civilian administra-
tion led by a former general,
Thein Sein, has given way to a
more realistic assessment of
how much change is still need-
ed and how far the country has
IuIIen beIInd economIcuIIy.
For the new rulers of the state
still known to many as Burma,
a mobilephone network is pre-
cious because its a rare way to
make a demonstrable change to
peopIe`s IIves beIore LIe poIIs.
Whether you talk to taxi driv-
ers or schoolteachers, theres a
big demand, says Chris Ban-
nister, Ooredoos Myanmar
cIIeI operuLIng omcer. Iuve
met people who have paid be-
Lween $o und $oo Lo geL u
sIm curd. TIuL`s unIeurd oI In
every compeLILIve murkeL.
Telenors Furberg has agreed
Lo IeL me sIudow IIm Ior 6
hours as the company begins its
drive to start operations within
eIgIL monLIs oI LIe $oo-mII-
IIon IIcence uwurd hnuIIsed In
January and then push to-
wards a sizeable long-term tar-
geL operuLIng cusI-ow murgIn
oI o percenL. TIe journey be-
gins amid a cluster of late-night
tea- and beer-houses on the
outskirts of Yangon, the depar-
ture point for the overnight bus
that has replaced the intercity
river steamer immortalised in
Rudyurd KIpIIng`s MunduIuy.
Evocative if uncomfortable vi-
sions of piling on slatted wood-
en seats among market-sellers
and chickens are dispelled by
LIe $z busIness cIuss bus
service were booked on, where
LIe sLewurdess oers IresI
strawberries and theres Harry
PoLLer on LIe seuLbuck TV.
We`re dropped o In LIe duwn
chill of Myanmars former royal
cupILuI. Over breukIusL noodIes
at a roadside restaurant, Furb-
erg and four other Telenor man-
ugers - uII In IdenLIcuI eece
jackets bearing the companys
tri-bladed propeller logo out-
line the task facing the business
as it expands into its sixth Asian
counLry. WILIIn hve yeurs, IL
musL serve qo percenL oI My-
anmars population although
nobody knows how many peo-
ple that is, as the government
Is IuuncIIng LIe hrsL census Ior
more LIun o yeurs.
TIe duy`s hrsL sLops ure wILI
potential distributors who will
be Telenors crucial link to an
InILIuI esLImuLed z,ooo nuLIon-
wide points of sale for phone
credIL und sIm curds. urberg -
a former Norwegian bureaucrat
und 1-yeur TeIenor veLerun -
wants people with an entrepre-
neurial spirit and without links
to the corrupt business net-
works that are a constant head-
ache for multinationals and pri-
vate investors trying to suss out
poLenLIuI purLners.
TIe hrsL meeLIng Is wILI Myo
MIn TIu. An engugIng zq-yeur-
old who has studied in Sin-
gapore, he says he wants to
branch out a family business
based on distributing Coca-Cola
and other soft drinks and hard
IIquor brunds. TIe InLervIew
ends with a demand ringing in
his ears: Every shop should
know Telenor and every shop
sIouId recommend TeIenor.
After a meeting with a second
distributor candidate, who runs
a beans factory and internet
cuI, urberg Ieuds o Lo Iook
at possible sites for some of
LIe 8,ooo LrunsmIssIon Lowers
the company will need to build
or share with its rivals nation-
wIde. TeIenor omcIuIs ure sensI-
tive about my questions on how
much they pay for land rent and
how they establish true owner-
ship of property, which is a huge
problem in Myanmar because
of its history of seizures by the
former junta with no or mini-
muI compensuLIon. One oI LIe
sites is a makeshift warehouse
for imported Chinese thermos
usks, wIere LIe co-owner, Nun
Molyan, has one big question
apart from the rental terms:
When do we get SIM cards?
On the way from the meet-
ing, Furberg talks about the ob-
stacles that face international
compunIes In Myunmur. Some
problems are predictable, such
as the chronic electricity short-
ages that mean Telenor will
need back-up generators capa-
ble of running its computer sys-
tem for two to three days, not
mInuLes or Iours us eIsewIere.
OLIer dImcuILIes ure Iurder Lo
plan for: Furberg says he simply
doesnt know how far Telenor
will be able to go into the vari-
ous zones oI conIcL beLween
ethnically rooted militias and
a government still seeking the
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. ~. .,...._ . .,: .~.. -.~
. e .q.~ . ~ _~ ._e. ..: Telenor -
~. ..: ~q:q .. ~. ._e. . Petter
Furberg ~ .~..~.:..: ..
~ ..: q ~ . :.q._ ...~ ~ . _e.
._~:. ._.:_~:..._.
. , . ._ . . ~ , .~ .~ . e .q.
...:.~ .,:.~..- Telenor
. ~:~:.- Ooredoo ~~:.
....._.. e...~~. .~.e.q.
~,q~.:.~ .:.:.q,~~~
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~ ._ . _.. . . :.._ _e. ._ ~~ ~
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~~~._. .~.:.,.....__e.
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...:..: ~q..:.~..q~~
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.q.. ...:..q._._.._.:....:.~
~ ~ ~ ~:.~ ~ _~ ... .. ._ .~~ .
e: ..: ..:.~:._e. .. .~: ..q:
.q:..:.~:._e... .~:.._.:._
A coupIe uses a mobiIe phone to take pictures on a boat in Yangon.
S
o
e

Z
e
y
a

T
u
n
/
R
e
u
t
e
r
s
Whether you talk to taxi drivers or
schoolteachers, theres a big demand. I
have met people who have paid between
$50 and $300 to get a sim card. Thats
unheard of in every competitive market.
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
28
IT & TELECOM
From page z;...(Myanmar's Mobile)
From page z;...(Myanmar's Mobile)
hrsL nuLIonwIde ceusehre sInce
Independence In 1qq8. He suys
hes had encouraging contact
with some rebel group repre-
sentatives, who are very po-
lite and thinking of all kinds
of opportunities to do business
and engage their people in do-
Ing busIness.
On human rights and surveil-
lance, Furberg says Telenor
has pushed hard for safeguards
against undue government in-
LerIerence. Every mobIIe operu-
tors nightmare is the scenario
that faced Vodafone in Egypt
durIng LIe zo11 uprIsIng uguInsL
President Hosni Mubarak,
when it bowed to orders to sus-
pend ILs servIce. Myunmur Ius
built in a requirement for the
government to obtain a court
order before asking a company
for data though whether the
courts would resist such a re-
quesL Is open Lo quesLIon.
Furberg also says Telenor has
strict controls in place to pre-
vent the kind of corruption al-
legations that have embroiled
other mobile companies, in-
cIudIng TeIIuSoneru oI Sweden.
TeliaSonera denied wrongdoing
In zo1z wIen IL wus uccused oI
puyIng $zo mIIIIon Lo u com-
pany controlled by an ally of the
Uzbekistan presidents daugh-
ter but the chairman and chief
executive still resigned a re-
minder that new markets with
weak institutions can be dan-
gerous us weII us IucruLIve.
By now weve passed from
paved highway to gravel road
to dirt track, before the sur-
face gets so bad that we have
Lo conLInue by moLorbIke. Our
convoy wends its way along
earthen dykes before stopping
by a river, where children step
on stones against a backdrop of
brIIIIunL green rusIes. TIe bIkes
are loaded on to a ferry punted
silently to the monastery-lined
vIIIuge oI Mwe Pon Kun. A
farming community where peo-
ple can expect to earn between
$qo und $;oo Irom eucI rIce
harvest, Mwe Pon Kan was
o-IImILs Lo IoreIgners durIng
LIe junLu eru. One sIgn oI LIe
changes that have taken place is
LIe omce oI Aung Sun Suu KyI`s
National League for Democ-
rucy. IIe Is socIubIe, und muny
of the compounds spacious
buL LIe cIosesL IospILuI Is zo
mInuLes downrIver - un eec-
tive death sentence for people
bitten by the snakes common
In LIe surroundIng heIds unLII
villagers hunted them down a
few years back and sold them to
CIInese mercIunLs.
Only a fraction of Mwe Pon
Kans households have mobile
phones for now, with most re-
lying on the telecoms services
oered by u Iew mom-und-pop
stores through massive desktop
IundseLs. L wouId be more
convenient for us to do business
if there were more mobile net-
works available, said Khin Mar,
a shop owner, who laments that
demund Ior Ier 1oo-kyuL-u-
mInuLe (ubouL 6 pence) pIone
service four times the new
government-set basic mobile
call rate has dwindled to half
or u LIIrd wIuL IL wus u yeur ugo.
Before leaving Mwe Pon Kan,
urberg sLops o uL LIe IocuI
school, where the buildings are
so crowded that some classes
Luke pIuce In LIe open uIr. He
hands over a big bag of exer-
cise books bought in a market
in Mandalay, a personal cash
donation and Telenor-branded
key rings and pens, which the
pupils wave enthusiastically as
we Ieuve. uLer, urberg dIs-
misses the idea that it was inap-
propriate to hand out company
mercIundIse Lo LIe cIIIdren.
could have bought pens from
the market but it wouldnt have
been as much fun as pens with
LIe propeIIer on, Ie suys.
think you are over-problematis-
Ing beIng poIILe.
On his return to Yangon, Furb-
erg is due to hold the latest in a
series of town meetings to talk
about Telenors plans though
he admits that many people come
hoping for SIM cards and are a
little bit disappointed we are not
yeL roIIIng ouL. L`s u smuII sIgn
oI u Iong-sLIed cruvIng Ior LIIs
cosmopolitan nation, historically
at the heart of Asia, to resume
normuI IIIe In LIe worId. PeopIe
~.| ,.~~ _~..:.._.~..
~..q._~:. Ooredoo - ~_~.
~~ ~. ._e. . Chris Bannister ~
._.:_~:.. _. . . .~~ ~. . qq q, ~~ ~
~..q~,..'.: ~ . ~..q~,
..'.: ,~~ ~ ....q._..:.
.._. ...~.._.. ~_.:.e_.
. . . .q ._ ._ ._ ...~ ~ ~ ..
....,.~:. ._~:.e.._~:. ._.:
_~:..._.
feel very strongly that this coun-
try deserves something better,
urberg suys. TIey deserve LIe
benehLs we ure brIngIng Lo LIe
mobIIe murkeL. And LIey deserve
Lo be LreuLed properIy.
Michael Peel is the FTs Bang-
kok regional correspondent. FT
Samsung Electronics Mobile Head Paycheck
Hits $5.8m, Beating Apples Cook
Wai Linn Kyaw
T
he head of Samsung Elec-
tronics Cos mobile busi-
ness, JK Shin, received
u $.8 mIIIIon compensuLIon
package last year, beating the
paycheck of his counterpart at
US rival Apple Inc, the South
Koreun hrm suId IusL week In ILs
hrsL sucI dIscIosure under new
reguIuLIons.
The worlds biggest technol-
ogy company by revenue said
Shins pack included a base sal-
ury oI 1.1; bIIIIon won ($1.oq
mIIIIon) und 1.6 bIIIIon won In
incentives and performance bo-
nus.
By comparison, Apple chief
executive Tim Cook received
$q.z mIIIIon In zo1, IILLIe
changed from the previous year
wIen Ie Iud been puId $q.1;
mIIIIon. Cook, Iowever, Iud u
separate pay related to annual
stock grants, while Shin did not
Iuve sLock opLIons.
Shin, who has led Samsungs
mobIIe busIness sInce zooq,
has since overseen the launch
oI ILs ugsIIp GuIuxy IundseLs
that helped it unseat Apple in
the smartphone market and
also sparked patent litigation
the world over that claimed
Samsung copied the look and
IeeI oI LIe US hrm`s IconIc mo-
bIIe producLs.
Samsungs other co-chief ex-
ecutive Kwon Oh-hyun, who
leads the component business,
eurned 6.;; bIIIIon won, wIIIe
third co-CEO Yoon Boo-keun,
the head of its consumer elec-
LronIcs busIness, receIved .oq
bIIIIon won.
SouLI Koreun hnuncIuI uu-
thorities changed regulations
late last year, requiring listed
companies to include annual
compensation details of execu-
LIves wIo eurn more LIun oo
million won in their business
reporLs hIIngs.
But the measure also drew
some criticism as it does not
shed much light on pay details
oI some IIgI prohIe owners
of business conglomerates or
chaebols, as they frequently as-
sume non-execuLIve LILIes.
Samsung didnt disclose re-
muneration details of JY Lee,
non-executive vice chairman
and son of its chairman Lee
Kun-hee, who is also non-exec-
utive chairman and receives no
suIury Irom Sumsung.
Myanmar Summary
Samsung Electronics Co - . .
..,...~ ~_~.~~_e.. J K
Shin ._ .,.._..~ ...
..: ~..q~,..'.: ...
.,.qq._.. _.~..,._e...:
~..q~,. Apple Inc - ..
. . , .. .~_~ .~~ _e. . qq ._
.....:~.:.,._._e.._~:.
.~: ~ q . e:. . . , . _ e. ._
Samsung Electronics Co . ._.:
_~:..._.
Apple -~. ..: .. TimCook
._ ~~, ...~ ~..q~,..'.:
,... .,.qq._.. ~~ ...~
~..q~,..'.:,...~ .,.qq.
._ ~~ ~ . . ...:qq. . : ~,_ .
e.: ._.:...._....:._.
Cook .: ... ..~:qee:qq
.._~.~~..q.,_.. Shin .:
~. .|~.~ .q ._~: .._ . . q._ .
Samsung EIectronics Co CEU ]K Shin speaks at a press conference.
T
h
o
m
a
s

P
e
t
e
r
/
R
e
u
t
e
r
s
Myanmar was one of the worId`s Ieast connected nations. But aII that is about to change.
R
e
u
t
e
r
s
This is the market we need to serve. There is no
electricity here, no road and no coverage.
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
Myanmar Summary
Myanmar Summary
Sony Unveils New Xpreia
Smartphones
Kyaw Min
A
lpha Technology & Com-
munication, the author-
ised distributor of Sony
Xperia products and accesso-
ries in Myanmar, has unveiled
two of Sonys latest smart-
phones and tablets at their Pre-
Thingyan Promotional Sales
CumpuIgn, LIe compuny suId.
This campaign is specially
catered for the water festival so
that customers can take good
quality pictures with their fami-
lies and friends during the fes-
tive season without damaging
their phones, April Lim, coun-
try manager of Alpha Technol-
ogy und CommunIcuLIon, suId.
Lim said: Sonys sleek de-
sign, advanced technology and
water resistance capabilities
will be very attractive to our
cusLomers.
To provide our customers
with an array of choices, we will
be runnIng promoLIon on 1o
dIerenL modeIs In LIIs cum-
puIgn.
Sony Xperia ~~,.:. ~..
~..:.._..:.~:. _.,.:.~
~q:.~~.._e,..qq:.._
AlphaTechnology & Communication
._ Sony - .,:~ . . ~ ..~ e , .
. Tablet ....~:. ._~,~:.
~.q: ._. ~ .q.~. ~. ~_e. . ~
.~....._~:. e.~.~. ._.:
_~:..._.
e.~.~.~:. ._~,~.~:.
~~ ~ ~ .q_ q e _..: q ~ . _. .
_e._.. ~.._...:.~.,_e ,.~-
. .:.. .:.. e . ..:.. ~~ ._~ ,
~:.~~. ~q_~....~:..,
..:.:~ . .:.~ e , . . ~ .~ . .. .q
, ~ e . :.. . . ._ _e. ._~: . Alpha
Technology and Communication .
.,.,:~.._e.._ April Lim
~ ._.:_~:..._.
Alibaba Invests $692m in Chinese Department
Store Operator
Elzio Barreto
C
hinas Alibaba Group
Holding Ltd agreed to
InvesL $6qz mIIIIon In u
Chinese department store op-
erator as the e-commerce giant
Iooks Lo brIng LIe benehLs und
convenience of online shop-
ping to customers who visit real
brIcks-und-morLur sLores.
Alibaba, whose businesses
will come under investor scruti-
ny ahead of the groups planned
mega IPO in the United States
LIIs yeur, suId IL wIII buy $z1q
million worth of shares in
Hong Kong-listed Intime Retail
(Group) Co Ld.
L uIso ugreed Lo ucquIre $q;8
million of convertible bonds,
wIIcI wouId gIve AIIbubu u z6.1
percent stake in the department
store operator once the bonds
are converted into shares in
LIree yeurs.
In recent months Alibaba
has gone on a shopping spree,
spendIng more LIun $z.; bIIIIon
to expand into media, chat ser-
vIces und muppIng LecInoIogy.
The expansion has encroached
on the turf of social networking
giant Tencent Holdings Ltd,
which has in turn made inroads
into Alibabas territory with its
purLnersIIp wILI CIInu`s No.z
onIIne reLuIIer JD.com.
The purchases come as Aliba-
ba starts its preparations for an
InILIuI pubIIc oerIng seL Lo be
the biggest-ever technology list-
ing, surpassing Facebook Incs
$16 bIIIIon IIsLIng In zo1z.
nLIme wIII Issue zzo.q mII-
IIon sIures uL HK$;. eucI
und HK$.;1 bIIIIon worLI oI
convertible bonds to a unit of
Alibaba, the department store
operuLor suId In u hIIng Lo LIe
Hong Kong stock exchange last
week.
As part of the investment,
Alibaba and Intime will form a
joint venture to develop online-
Lo-omIne, or OzO, busIness In
shopping malls, department
stores and supermarkets in
CIInu. AIIbubu wIII own ubouL
8o percenL oI LIe venLure, wILI
nLIme conLroIIIng LIe resL.
O2O businesses seek to ben-
ehL Irom LIe meLeorIc rIse oI
smartphone use in China and
can help turn a search into a
shopping trip or meal based on
LIe user`s IocuLIon. Reuters
Myanmars E-Libraries Bring Students
Up to Speed After Military Rule
AYE MYAT
T
wo universities in Myan-
mar have opened e-li-
braries containing hun-
dreds of thousands of digital
books and periodicals in a move
to help students catch up with
LIeIr peers uround LIe worId.
After years of isolation under
strict military rule, students at
the University of Yangon and
University of Mandalay will
now have uncensored access to
a wide range of learning materi-
uIs.
Universities had been seen
as centres of resistance to mili-
tary rule and heavily restricted
Yangons university had been
one of the most prestigious in
South East Asia, but had been
caught in a cycle of protests,
repression and shutdowns,
wroLe BBC.
But as part of Myanmars re-
forms in recent years, univer-
sities have been given greater
freedoms, and young students
have now returned to rejuve-
nuLe negIecLed cumpuses.
In the current phase, students
must access computer termi-
nals located in physical librar-
Ies. However, boLI unIversI-
ties plan to expand access to
students dormitory rooms via
their personal laptops in the
neur IuLure.
TIe hrsL wuve oI new sLudenLs
to enter the once highly regard-
ed universities are said to be
the brightest and best in My-
anmar and eager to learn and
speuk EngIIsI. TIey Iuve bIg
sIoes Lo hII uILer u generuLIon
wILIouL u gruduuLIng cIuss.
The e-libraries were provided
LIrougI LIe joInL eorLs oI EIec-
tronic Information for Libraries
and The Open Society Founda-
LIons.
~, ~ . - AlibabaGroup Holding
Ltd ._ ~,~.-.~..~:..q
~:~..~ ~..q~,..'.: '
.,. q..._...q, ..:~_._..
~. .| e-commerce . . , ._~ .~.,
_e bricks-and-mortar .~..:..
. :..q:~ q._ .e:~ ._ .:.~~ ~
~ , . ..q : . .- ~~ ..~.~ ..
~. ._...:.. . .:.~ qq ..q, ~~ ~
...:..,._~:. .q._.
~_. .e:.~:..~:~..,.
~ .:q .. .:.._ IntimeRetail
(Group) Co Ltd - qee:.:.~
._. ~..q~,..'.: ~, .,.
~. ._.~: ~e e . :.._ e ._.:_~:.
. ._ . ~_. convertible , ..:..
.:.~._. ~..q~,..'.: ,
.,.~ ~.._.~: ~ee.:.q,
..:~ _ . ~: , ..:.. .:.~.,
_e ....~:~:.~ qee:.:.
~_e.._.:...._~~~ depart
ment storeoperator ~ q e e: '
... ~ q:..,.~ Alibaba ~~~
e,~.....:.eeq.,_...,.._.
.:.~~. Alibaba .~..q~,..'
.:....e.~:~ ~.._..
_.._e.._.
R
e
u
t
e
r
s
_ ., .:. q ~~ . . . . . ._
~ .~ .q:,. .:_~_ ~ ~ e-libraries
.:.~ e..._.. .~:..:..:.~:.
..:~~ ~~~_.:.qq..q,
digital book .:.. ~.:~.~,.q
.~:..:..:.,_.~ ~.~.q:
,..:_~_~~.:.~ ~.._..q,
~~ ~ e. ~ . e . . . _. ._e. ._~: .
.q._.
q, ~ , ~~ . . ._ e. ~ ~.q
.~:~:q~ ~.,.~:_~:...:
~~...~:.~.._e._.. ..~..q
-e....:.._~: .._...:._e...'
... ~~..~:. .~...q._
~_e. . ..:._e. ..'. q._ .._~:....
. . .:.~~ . _., .:. -_._. ._.: ..
. .:.._~: ~~ . . .:.~.,_e . .
.~...:q.~_.:..._.
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
WPG Group Opens Te
Big Fryer, Food Talk and
Noodle King in Yangon
Guests enjoying the bufet lunch. Nay Chi Studio
Team from model FC and other female models.
Nay Chi Studio
Robert Chua, Singapore Ambassador to Myanmar.
Nay Chi Studio
Celebrity Melody. Nay Chi Studio Delegates pose for a photo. Nay Chi Studio
Actress and model Soe Nandar Kyaw (M).
Nay Chi Studio Te ribbon cutting. Nay Chi Studio
Coca-Cola Debuts Myanmar Language International Music Collaboration and Kicks-Of Summer Campaign
A Coca-cola representative speaks at the launch.
Coca-Cola Myanmar
Performers at the show. Coca-Cola Myanmar
Performers at the show. Coca-Cola Myanmar
Bobby Soxer (L). Coca-Cola Myanmar Sai Sai (L). Coca-Cola Myanmar
Launch of the music collaboration. Coca-Cola Myanmar Launch of the summer campaign. Coca-Cola Myanmar
Samsung Galaxy S5 Launch
Zaw Moe Aung, product marketing manager. Samsung Myanmar Zaw Moe Aung. Samsung Myanmar
Zaw Moe Aung. Samsung Myanmar
Models with Samsung S5 smart phones. Samsung Myanmar
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
31
April 10-16, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
China-Myanmar Co-Produced
TV Series to Air in April
Wai Linn Kyaw
A
fter years of planning
und producLIon, LIe hrsL
joint TV series venture
between China and Myanmar is
hnuIIy reudy Lo uIr.
The new TV drama, The Leg-
ends of Music, will start broad-
casting in Myanmar on April 14
In Sky NeL TV cIunneI.
The Film and TV Program
Database of the State Council
nIormuLIon Om ce oI CIInu
and local Shwe Than Lwin Me-
dia Co Ltd signed an agreement
at the Sky Net TV headquarters
on LIe deIIvery oI LIe hIms Lo
LIe Myunmur sIde Ior LeIecusL.
The story of the drama cen-
tres around a Myanmar prince
visiting China during the Tang
dynusLy over 1,zoo yeur ugo,
accompa-
nied by a
troupe of
musical per-
formers who
travelled
thousands
of kilome-
tres to the
then Tang
dynastys
capital of
CIung An.
It aims to
bring to life
the fascinating history of the
period, and how the southern
Silk Road promoted exchange
beLween cIvIIIsuLIons.
The series was shot in the an-
cient city of Bagan, once home
to the imperial palace and a
mIgILy empIre.
The Chinese new generation
idol Lin Gengxin and Korean
actress Choo Ja Hyun star
In LIe hIm. n LIe hrsL Lwo
episodes, there will be action
footage, songs and dance as
well as natural scenes shot in
Myanmar, Chinese state-media
reporLs suId.
Another Chinese TV series
Contradiction of Spouse
in Myanmar language was
launched in Sky Net channel on
MurcI z6. n uddILIon, 11 oLIer
special feature and documen-
Lury hIms Iuve been dubbed
in Myanmar language to be
broudcusL by Sky NeL.
The Legend of Music, which
was funded by Yunnan TV sta-
tion, made its debut in China in
December zo1.
Ahead of the airing, The Leg-
ends of Music was premiered
at a ceremony in Yangon last
week. TIe premIere oI LIe TV
series was part of the Experi-
ence CIInu - Myunmur Tour.
The premier was attended by
U Paik Htway, deputy minister
for Information, Cui Yuying,
deputy minister for the In-
IormuLIon Om ce oI LIe SLuLe
Council of China, Yang Houlan,
Chinese Ambassador to My-
anmar, and Zhao Jin, member
of Standing Committee of the
Chinese Communist Party of
Yunnan Province and head of
Information Department of the
provInce.
Zhao expressed appreciation
over LIe eorLs oI joInL sIooLIng
and production of the TV series
InvoIvIng urLIsLs oI boLI sIdes.
He said Chinese audiences
were moved and responded
positively on the web praising
the artists role played in the
hIm wIen LIe TV serIes wus
hrsL uIred by CIInese TV on
dIerenL cIunneIs.
The Legend of Music has
opened a new chapter of cul-
tural exchange and cooperation
between China and Myanmar,
witnessing the friendship
between the two peoples, he
suId.
He said such exchange and
cooperation in the cultural
sector would continue and ex-
pand and enhance the mutual
understanding between the two
peoples so as to inherit such
China- Myanmar friendship
generuLIon by generuLIon.
U Paik Htway said the joint
shooting of the TV series pro-
vides exchange and friendship
Lo LIe Lwo counLrIes. He suId
following the premiere of the
TV series would strengthen the
China-Myanmar paukphaw
(IruLernuI IrIendsIIp).
Cuests from both Myanmar and China pose for a group photo during a ceremony to
screen the rst China-Myanmar jointIy-shot TV series Im "The Iegend of Music"
in Yangon.
U
A
u
n
g
/
X
in
h
u
a
A poster of the drama.
A scene from the drama.
Shooting of the drama.