May 8-14, 2014

Myanmar Business Today

mmbiztoday.com
mmbiztoday.com May 8-14, 2014| Vol 2, Issue 18 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Myanmar Summary
Contd. P 12...(Seven) Contd. P 12...(Seven)
Inside MBT
Yangons Traders Hotel Becomes
Sule Shangri-La P-23
Seven in 10 Asian Firms Eyeing Myanmar
Entry in The Next 12 Months: Survey
S
eventy percent of
Asian business lead-
ers said they plan
to expand into Myan-
mar within the next 12
monLIs, um rmIng LIuL
the Southeast Asian coun-
try remains a key invest-
ment hotspot for compa-
nies looking for regional
growth opportunities, a
survey revealed.
The survey, conducted
among key decision mak-
ers of Asian companies
with an annual turnover
of S$50 million or more,
found that the two most
compelling reasons be-
hind their focus on My-
anmar were the opportu-
nity to provide goods and
services to the countrys
growing middle class (46
percenL) und LIe sIgnIh-
cant business opportuni-
ties present as a result of
the countrys rapid trans-
formation (41 percent),
the survey results show.
Singapore-based United
Overseas Bank Ltd (UOB)
conducted the survey with
more than 100 of its cor-
porate banking and com-
Phyu Thit Lwin
mercial banking customers
when they attended an in-
vestment seminar in Yan-
gon in late February.
Ivan Chu, business op-
erations manager, Soon
Hong Seng Pvt Ltd, a
hardware tools and safety
equipment supplier, said:
Myanmars fast-growing
economy and its need for
infrastructural develop-
ment mean that there is
a ready market for our
hardware tools and safety
products.
This, combined with
competitive labour costs
and young and vibrant
workforce, makes Myan-
mar an attractive expan-
sion destination for our
manufacturing business.
However, as with any
emerging economy going
through a rapid transfor-
mation, Myanmar faces
the challenges of chang-
ing local laws and invest-
ment regulations.
Sam Cheong, execu-
tive director and head of
group FDI Advisory Unit,
UOB Group, said, The
business opportunities
in Myanmar are real and
so are the risks and chal-
lenges.
U
O
B
United Overseas Bank -
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Thilawa SEZ Construction
Work on Track
Project set to go into partial operation in mid-2015
Htun Htun Min
M
yanmar will see
ILs IIgI-prohIe
Thilawa Special
Economic Zone (SEZ) go
into partial operation in
mId-zo1, u Lop om cIuI
involved with the project
said.
The earthwork for the
Class A Project has been
completed and construc-
tion of water and power
facilities are underway,
U Win Aung, chairman
of Myanmar Thilawa
SEZ Holdings Public Ltd
(MTSH), which holds 41
percent share in the pro-
ject, said.
The Thilawa project is
expected to help create
about 40,000 jobs for lo-
cal residents, he added.
The Class A project cov-
ers 396 hectares out of
the 2,342-hectare Thila-
wa SEZ, located 25 kilo-
metres from Yangon.
MTSH has received
many letters of intents
from companies around
the world, especially from
Japan, Hong Kong and
Europe, to invest in the
project, he added.
Thilawa SEZ Holdings to Return
over K18-b Oversubscribed
Shares P-5
The Bonds That Will Tie The Na-
tion (Part I) P-7
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May 8-14, 2014
Myanmar Business Today
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2
LOCAL BIZ
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
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Business News in Brief
Mi li tar y-owned enter pr i ses to lose pr i vi leges
i n mi ni ng sector
Myanma Economic Holding Ltd (MEHL) and Myan-
ma Economic Corp (MEC), owned by the Ministry of
Defence, will not have any special privileges in the min-
ing sector including the lucrative jade and ruby indus-
try, local media reported, citing director general Win
Htein of the Ministry of Mining. They wont have any
privileges any more. They will have to take part in the
competitive bidding against others when their current
mining licenses expire soon, he was quoted as saying.
Local ai rli ne to launch Myei k-Bangkok Fli ght
A IocuI hrm wIII IuuncI bI-weekIy cIurLer IgILs IInk-
ing Myanmars southeastern archipelago of Myeik with
Thai capital Bangkok this month, according to a local
media report. Union Express Charter Airline, a joint
venture between Myanmar Union Express Aviation
Group und MyeIk PubIIc Corp, wIII operuLe LIe IgILs
using a 168-seater Boeing737 to link Bangkok and the
coastal city in Tanintharyi division, which was recently
opened up for tourism. Flights will run every Tuesday
and Friday, costing $140 for a return ticket, the report
udded. PrIor Lo LIe IgILs, MyeIk resIdenLs Iud Lo LruveI
to Bangkok via Yangon.
J apan to gi ve 4b to str eamli ne taxati on sec-
tor
Japan has pledged to spend almost 4 billion to
streamline Myanmars tax sector, according to the Cus-
toms Department under the Ministry of Finance. The
Japanese government will provide 3.9 billion for the
Single Window Project which aims to modernise the
taxation system by using auto-clearing for commodi-
ties. An agreement regarding this between the two gov-
ernments was signed last month.
Thi lawa SEZ Holdi ngs to pi ck i ndependent di -
r ector
The government has asked the Thilawa SEZ Holdings
Co Ltd to appoint independent directors who wont
hold any shares in the company. The Myanmar govern-
ment owns ten percent of the company while 41 percent
Is prIvuLeIy owned, wILI u IundIuI oI InuenLIuI compu-
nies investing over K39 million ($40,206) in the shares.
The remaining 49 percent is owned by Japan. We will
hold a shareholder meeting and appoint the directors,
U Set Aung, chairman for Thilawa SEZ Administration
Committee, said.
Myanmar r elaxes j our no vi sa r ules for ASEAN
Summi t
Myunmur Ius sImpIIhed enLry vIsu procedures Ior Ior-
eign journalists seeking to cover the upcoming ASEAN
Summit in the country later this month, the informa-
tion ministry said. Under the new scheme, the one-
month multiple entry visa rule for foreign reporters has
been sImpIIhed. VIsus cun be exLended LwIce. JournuI-
ists were advised to re-apply for a new visa after three
months at the Myanmar embassies which issued their
hrsL vIsu. oreIgn correspondenLs bused In Myunmur
will be allowed to extend their visa in every six months,
according to the new plan.
Yatanar pon Telepor t seeks for ei gn par tner s
State-owned telecommunications services provider
Yatanarpon Teleport is in discussion with four foreign
companies to establish a public-private partnership, lo-
cal media reported. True Move from Thailand and Ax-
iata from Malaysia are reported to be favourites. The
joint venture will be 51 percent owned by Yatanarpon
TeIeporL und qq percenL by LIe cIosen IoreIgn hrm. Yu-
tanarpon Teleport currently provides mobile services
and internet provision.
MOGE calls r i gs upgr ade tender
State-owned Myanma Oil and Gas Enterprise (MOGE)
under the Ministry of Energy is now planning to up-
grade its own drilling rigs with a range of capacity for
shallow, medium and deep wells, and aims to cooperate
with local and foreign partners to participate in future
drilling activities. MOGE said all interested local and
foreign companies are warmly invited to come and dis-
cuss Ior poLenLIuI busIness cooperuLIon uL MOGE om ce
at Complex 44 in Nay Pyi Taw.
Myanmar Summary
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
3
LOCAL BIZ
Myanmar Summary
6,000 Tonnes of Rice to Be Shipped to Japan This Month
Rice export falls in 2013-2014 FY
Phyu Thit Lwin
M
yanmar will export
6,000 tonnes of rice to
Japan this month, ac-
cording to Myanmar Rice Fed-
eration (MRF).
This is the second time My-
anmar is going to export rice to
Japan after Japan agreed to im-
port rice from Myanmar for the
hrsL LIme In qo yeurs In zo1.
In 2013, Myanmar won the
tender to export 5,000 tonnes
of rice to Japan.
This year, Myanmar Agribusi-
ness Public Corp (MAPCO) and
Japans Mitsui Corp collabo-
rated to bid for a tender and
won an export order of 6,000
tonnes.
The companies will export
Sinthwe Latt and Hmawbi II
type (5 percent broken) rice to
Japan.
Besides the 6,000 tonnes of
rice export, we also signed MoU
with some African countries to
export 40,000 tonnes of rice,
Dr Soe Tun, chairman of MRF
said.
For the rice exporters, there
Is very IILLIe prIce dIerence
between the local and foreign
markets. So there is not much
prohL Ior LIem. BuL Ior LIe cur-
rent export order, they will get
about $450 to $500 per tonne,
which is a much better price,
said Dr. Soe Tun from Myan-
mar Rice Federation.
Half of Myanmars rice ex-
ports go to China via border
Lrude. DurIng zo1z-1 hnuncIuI
year, over 800,000 tonnes of
rice were exported to China.
According to the Myanmar
Rice Federations data, Myan-
mars rice export fell in 2013-14
hscuI yeur LIuL ended MurcI.
Myanmar exported about 1.5
million tonnes of rice in 2012-
13 but could only manage to ex-
porL 1.1 mIIIIon IusL hscuI.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
Malaysias Yinson Eyes
Myanmar O&G Opportunities
Aye Myat
M
alaysia-based Yinson
Holdings Bhd (YHB),
u provIder oI osIore
support services for the up-
stream oil and gas sector, said
it is looking into the prospect
of venturing into the oil and gas
sector in Myanmar.
The company is eyeing Myan-
mar because of its rich oil and
gas reserves, Yinson chairman
and managing director Lim
Han Weng said, adding that the
hrm Is uIso IookIng uL Gubon,
Nigeria and Angola in West Af-
rica, and Vietnam and Malaysia
in Southeast Asia for its next
ventures, Malaysian media re-
ported.
Experts suggest that in ad-
dition to Myanmars current
20 trillion cubic feet (tcf) of
reserves, which is worth $106
billion, there could be another
80tcf of undiscovered natural
gas worth about $424 billion.
Most of Myanmars reserves
are still in place as the country
has only exported its gas for the
past 15 years. Since the 1970s ex-
plorers have only drilled a total
oI 1q osIore expIoruLIon weIIs,
making the country an almost
completely unexplored zone.
Myanmar has a good oppor-
tunity in the sector, which is
developing well in the past few
years. However, we need to un-
derstand the legal structure of
LIe counLry hrsL beIore mukIng
our next move, Lim was quot-
ed as saying.
In the last 12 months, Myan-
mar gave concessions for pro-
duction and exploration of its
osIore und onsIore oII und
gas blocks to global energy gi-
ants like Royal Dutch Shell,
ConocoPhilips, BP, Chevron
and Woodside, among others.
Myanmar Summary
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Govt to Carry Out Maintenance
Work on Two Major Rivers
Phyu Thit Lwin
M
yanmar government
will carry out main-
tenance work on two
major rivers Ayeyarwaddy
and Chindwin in the coun-
try, in a bid to improve the riv-
ers navigation, the Ministry of
Transport said.
The government will spend
K12 billion ($12.5 million) on
removing sandbank and main-
tenance of riverbeds and wa-
terways of the two rivers with
preventive measures against
erosion of the rivers, according
to the ministry.
Of the total budget, K127
million will be allocated to the
maintenance of Twante canal,
which is vital for transportation
by waterways to and from Yan-
gon and the Ayeyarwaddy delta
region in the southwest.
According to the ministrys
Directorate of Water Resources
and Improvement of River Sys-
tem, the Ayeyarwaddy river is
eroding at many places along
the river and the directorate
is currently repairing places
where erosion is most serious.
The directorate said it has
completed the assessment on
the possibility for building four
low-head dams on the Ayeyar-
waddy river in central Myan-
mar recently.
The water level of the Ayeyar-
waddy river last year reached
above its danger level of 1,260cm
in the rainy season but fell to
720cm in summer in Mandalay.
Flowing from north to south,
the Ayeyawaddy river has been
the key water transport route of
Myanmar since ancient times.
It also poses a great barrier to
the social and economic rela-
tions between the eastern and
western parts of the country.
AccordIng Lo omcIuI sLuLIsLIcs,
a total of 11 Ayeyawaddy river-
crossing bridges had been con-
structed over the past two dec-
A bridge on Ayearwaddy river that connects Magwe and Mandalay divisions.
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ades and three more bridges are
under construction.
There are also bridges across
Chindwin, Thanlwin and Sit-
toung rivers.
Myanmar Summary
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
Thilawa SEZ Holdings to Return over
K18-b Oversubscribed Shares
Htun Htun Min
M
yanmar Thilawa
SEZ Holdings
(MTSH) Public
Ltd announced that the
company will return over
K18 billion ($18.7 million)
worth of oversubscribed
shares to the public.
Shares of Thilawa Spe-
cial Economic Zone (SEZ)
went on sale in March
- oered LIrougI bunks
in absence of a stock ex-
change in a bid to raise
K21.45 billion ($22.3 mil-
lion) through selling 2.145
million shares (K10,000
eucI) Lo Iund LIe hrsL
phase of construction of
the SEZ 25 kilometres
south of the countrys
commercial hub Yangon.
However, the proposed
subscription has reached
over K40 billion ($41.6
mIIIIon), u Lop omcIuI oI
the company said.
A total of over 17,000
proposals to buy more
than 4 million shares
were received and among
them, about 90 percent
wanted to subscribe 500
shares or less and the rest
proposed to subscribe
over 500 shares.
Currently, MTSH is ne-
gotiating with the banks
to return the oversub-
scribed shares to the pub-
lic and MTSH will pay for
the banks service cost,
said U Tun Tun, treasurer
of MTSH.
The shares were avail-
able at Kanbawza Bank,
Ayeyawady Bank, Myan-
mar Apex Bank, Coopera-
tive Bank and Yoma Bank.
While selling shares
MTSH gave priority to
the buyers who were sub-
scribing to 500 shares
(valued K5 million) or
less. The company in-
tends to allocate 56 per-
cent of the shares to buy-
ers who belong to this
category and 44 percent
to those subscribing over
500 shares, chairman of
MTSH U Win Aung said.
The government gave
us instructions to make
shareholders with less
subscription to become
majority in the public
company, said U Set
Aung, chairman of the
SEZ management depart-
ment and also the vice
chairman of the Central
Bank of Myanmar.
The subscribers of over
500 shares may not be
able to buy shares accord-
ing to their proposals and
can only subscribe to the
number of shares set by
MTSH, U Win Aung said.
We sold shares to the
public to make us a prop-
er public company. These
shares are only a part of
the overall project. We
will sell more shares de-
pending on our require-
ment.
Not only Myanmar
and Japan but also other
international companies
ure oerIng Lo InvesL In
the project, he said.
However, MTSH didnt
explain its investment
pIuns und prohL sIurIng
procedures prior to the
share sales and share buy-
ers said they would like to
know details of the com-
panys plans if they are
buying its shares.
An applicant from Yan-
gons Sanchaung town-
ship who submitted share
subscription proposal
told Myanmar Business
Today that he wants to
buy the shares of MTSH
because Thilawa is My-
unmur`s very hrsL SpecIuI
Economic Zone, but he
doesnt know the detail
of the companys invest-
menL und prohL sIurIng
plans.
The company should
hold meeting with the
shareholders to explain
their plans in detail, he
said requesting anonym-
ity.
The Thilawa project is
a joint venture undertak-
en by the Myanmar and
Japanese governments
along with a consortium
of Japanese companies,
where the Myanmar side
owns 51 percent and the
Japanese side the rest.
In the joint venture com-
pany, Myanmar Japan
Thilawa Development Ltd
(MJTD), Myanmar gov-
ernments Thilawa Spe-
cial Economic Zone Man-
agement Committee owns
10 percent and the rest is
owned by MTSH, which is
a consortium of nine My-
anmar companies.
The Myanmar com-
panies are: FMI Co Ltd,
Golden Land East Asia
Development Ltd, Myan-
mar Agribusiness Public
Corp Ltd, Myanmar Ag-
ricultural & General De-
velopment Ltd, Myanmar
Edible Oil Industrial Pub-
lic Corp Ltd, Myanmar
Sugar Development Plc,
Myanmar Technologies
and Investment Corp De-
velopment Ltd, National
Development Co Group
Ltd and New City Devel-
opment Plc.
On the Japanese side, 39
percent is owned by MMS
Development Co Ltd, led
by LIree Jupunese hrms
Sumitomo Corp, Mitsubi-
shi Corp and Marubeni
Corp, and 10 percent is
owned by the Japan In-
ternational Cooperation
Agency (JICA).
Thilawa SEZ, which
is expected to be opera-
tional by 2015, includes
a large industrial zone, a
deep sea port, factories
and housing projects.
Myanmar Thilawa SEZ
Holdings Public Limited
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A ship docked at ThiIawa Port in Yangon. A port construction project wiII be impIemented in ThiIawa
SpeciaI Economic Zone (SEZ).
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
Myanmar Summary
Myanmar Summary
Myanmar, Japan to Cooperate on
Tourism Development in Bagan
Aye Myat
T
he Ministry of Hotels and
Tourism and Japan In-
ternational Cooperation
Agency (JICA) will conduct a
feasibility study for a project to
establish a pilot model for tour-
ism development in Bagan, an
ancient city in Mandalay region.
The study includes a tech-
nical cooperation project for
improvement of tourist infra-
structure, human resources de-
velopment and heritage and en-
vironmental conservation, the
ministry said.
Bagan, Myanmars top her-
itage destination, is home to
thousands of ancient pagodas
and is shortlisted to join UN-
ESCOs World Heritage list.
On April 10, the ministry and
JICA signed a record of discus-
sion for the project that aims
to further develop the tourist
industry in Myanmar through
technical cooperation between
the two countries.
Recently, the Ministry of Ho-
tels and Tourism drew the My-
anmar Tourism Master Plan
(2013-2020) with the assistance
of international organisations.
TIe pIun IdenLIhes LIe need Lo
conserve Bagan and control
tourist developments. Zoning
laws have been approved that
exclude all hotel development
near or on the pagoda sites.
However, there are genuine
concerns that commercial de-
velopment will cause irrepa-
rable damage to the historical
park and the JICA team is com-
missioned with the task of iden-
tifying measures that will pre-
vent damage or overcrowding.
Since the current quasi-ci-
vIIIun governmenL Look omce
in 2011, tourist arrival in My-
anmar reached 1.06 million in
2012 and 2.04 million in 2013,
uccordIng Lo omcIuI duLu.
TempIes are seen at the ancient city of Bagan in MandaIay region, Myanmar. Bagan, which stood as an ancient capitaI from
11th to 13th centuries and Buddhist center with about 1U,UUU pagodas and reIigious structures spreading more than 8U
square-kiIometers, now remains with over 2,UUU ruins.
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Govt to Launch MyanTrade
to Boost Exports
Pann Nu
M
yanmar is planning
to establish an export
promotion organisa-
tion in a bid to boost the coun-
trys exports, the Ministry of
Commerce said.
The new agency, MyanTrade,
will prioritise enhancing trade
and also study other regional
countries to adopt successful
policies.
A national export strategy
aimed at improving both quan-
tity and quality of the exported
goods is being drafted, the min-
istry said. A law governing val-
ue-added export goods as well
as an anti-dumping law and a
safeguard law are also being
drawn up.
Myanmar mostly exports
natural gas, agricultural pro-
duce, gems, marine and forest
products, and imports consum-
ers products, raw materials and
heavy machineries.
Myunmur`s Lrude dehcIL IIL u
new IIgI In zo1-1q hscuI yeur
that ended in March at $2.65
billion because of surge in im-
ports following the opening up
of the country, the commerce
ministry statistics showed.
The total trade volume rose
from $18 billion to $25 billion
In LIe IusL hscuI yeur, uccordIng
to the data.
Myanmars total exports in
2013-14 amounted to $11.1 bil-
lion while the total imports
stood at $13.75 billion. Exports
in 2012-13 were $8.97 billion
while imports were $9.06 bil-
lion.
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Ital-Thai Eyes Projects Worth $2b in Dawei
Kyaw Min
T
he Italian-Thai De-
velopment (ITD)
Co aims to bid for
projects worth $2 billion
In LIe hrsL pIuse oI LIe
Dawei Special Economic
Zone project in Myanmar
this year.
The company trans-
ferred responsibility for
the project to the Thai and
Myanmar governments
earlier this year citing dif-
hcuILIes In munugIng LIe
projecL`s hnuncIuI uspecLs.
President and chief ex-
ecuLIve omcer PIeumcIuI
Kannasutra Premchai
Kannasut told a share-
holders meeting that the
company would enter a
joint venture with Rojana
Industrial Estate to bid
for development of an in-
dustrial estate in Dawei,
Thai media reported.
Italian-Thai is also in-
terested in bidding on
the second and the third
phases of the project next
year, the reports said.
The company will now
focus on three businesses:
construction, infrastruc-
ture projects and mining,
it said.
Myanmar Summary
PeopIe on a moped drive past a sign indicating the economic zone near Bawei in southern Myanmar, near
the site of a pIanned speciaI economic zone and deep sea port.
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Italian-Thai Development
(ITD) ~.,_e _.,.:.-
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.:.~:. e. . . ~~ . ~ .q:~
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~~ . ~ ~.,_e Rojana In-
dustrial Estate .....|.~:
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._~: .._.:_~:..._.
Shipments by container in Myanmar are stiII a fraction of neighboring countries.
The government said it wiII Iaunch an export promotion agency, MyanTrade, to
boost exports.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
7
LOCAL BIZ
Myanmar Summary
Contd. P 8...(Part ) Contd. P 8...(Part )
The Bonds That Will Tie The Nation (Part I)
Te frst part of this article discusses the urgent need for capital to sustain the development process in Myanmar and the fnancing mechanisms the gov-
ernment can adopt to achieve that. Te second part, which will be published next week, will discuss infrastructure investment and fnancing.
Kyaw Myo Htoon
T
rum c probIem In
Yangon, drink-
ing water shortage
across Myanmar, high
unemployment rate in
the country and sustain-
ing peace with ethnic
groups viable solutions
for all these challenges
and problems come down
to one critical component
that will dramatically re-
shape the future of this
nation: capital.
The development and
growth of both public and
private sectors demand
large sums of capital in
emerging economies like
Myunmur. WILIouL sum -
cient capital it will merely
be a distant dream to be-
come a thriving modern
nation.
It is obvious that rais-
ing revenue for the de-
velopment of the country
is the utmost priority for
current as well as future
governments of Myan-

It is no longer true that a

government must absorb
loss in order to serve its
own people, a perception
widely rooted among Myanmar
public.
mar no matter who wins
in 2015 election. On the
other hand, spending and
investing those revenues
are even more critical
because it will also play
an important role in sus-
taining peace with ethnic
groups after peace agree-
ment deal is attained at
nationwide levels. With-
out proper economic
development plan, or a
budget, in those ethnic
provinces it will be very
challenging for the gov-
ernment to keep the peace
going.
Ike prIvuLe prohL-und-
loss business entity the
government and the pub-
lic need to understand
and monitor where the
money comes from and
where the money goes,
especially in times of
sovereIgn hnuncIuI crI-
sis, which happened in
Greece, Ireland and Por-
tugal. It is no longer true
that a government must
absorb loss in order to
serve its own people, a
perception widely rooted
among Myanmar public.
Therefore, it is a matter
of national emergency to
come up with a plan that
will deploy the countrys
precIous hnuncIuI re-
sources.
The main source of rev-
enue or capital for most
governments like My-
anmar is tax. Myanmar
governments tax revenue
is about 4 percent of the
GDP ridiculously low
compared to other peer
emerging countries like
Vietnam (25 percent),
Cambodia (15 percent)
and Bangladesh (10 per-
cent).
Vietnam launched a se-
ries of tax reforms from
1996 to 2010 to reach a
23 percent tax revenue to
GDP ratio. The tax rev-
enue collection grew at a
rate of 19.6 percent annu-
ally during the reform pe-
riod. Now Myanmar gov-
ernment has launched its
own tax reform but even if
it grows 20 percent annu-
uIIy, IL wIII Luke hve yeurs
to achieve double the cur-
renL hgure oI Lux eurnIngs
to GDP ratio. At this pre-
sent moment or years to
come, tax revenue will not
be a reliable source of the
Myanmar governments
revenue. To persuade and
educate individuals and
business organisations to
pay tax is a time consum-
ing and complicated pro-
cess.
The international best-
selling author Michael
Lewis points out in his
bestselling book Boo-
merang that the main
componenL oI hnuncIuI
crisis of Greece was the
government having failed
to punish tax evaders.
Myanmars narrow tax
base and overreliance on
resource-based revenues
is laying the foundation
Ior u IuLure hscuI crIsIs. I
reforms are not urgently
undertaken, the govern-
ment may not be able to
provide basic services and
may risk becoming seri-
ously indebted. The gov-
ernmenL cunnoL uord Lo
dwell on the problem of
narrow tax base and focus
on solutions available for
economic development
other than tax.
International Organiza-
tion for Migration (IOM)
estimated that 10 percent
of Myanmars popula-
tion, then estimated to
be 50 million to 55 mil-
lion people, was living
abroad. Although some
5 million Myanmar are
working abroad for their
livelihood, only $566
million (or 1.1 percent
of GDP) worth of remit-
tances went through the
Central Bank of Myanmar
last year. In neighbouring
Bangladesh, monetary
authorities managed to
get their hands on nearly
$14 billion (or 12 percent
of GDP) in remittances,
channelled through their
formal banking system.
According to a recent re-
port sponsored by the In-
ternational Fund for Ag-
ricultural Development
(IFAD) and the World
Bank, a migrant worker
in Asia sends home nearly
an average $4,000 annu-
ally. Even when average
amount is cut into half,
5 million Myanmar over-
seas workers will send
home $10 billion annu-
ally, which is equal to 20
percent of GDP and more
than the value of Myan-
mars annual gas exports
to Thailand, the Econo-
mist reported. Over the
recent years, the positive
impact of overseas remit-
tances on emerging econ-
omies has been a subject
of considerable debate.
Again, these remittances
are often referred to as
the third pillar of devel-
opment alongside foreign
direct investment and
ViabIe soIutions for aII the chaIIenges and probIems in Myanmar come down to one criticaI component
that wiII dramaticaIIy reshape the future of this nation. capitaI.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
From page ;...(Part )
From page ;...(Part )

Myanmars narrow tax

base and over-reliance on
resource-based revenues
is laying the foundation
for a future fiscal crisis.
overseas development
assistance, and the value
has outweighed that of
om cIuI deveIopmenL us-
sistance.
Remittances have now
become the second largest
inbound resource for the
developing countries after
foreign direct investment
(D), IoIIowed by om cIuI
development assistance
(ODA) and private debt
and equity. In 2008, re-
mittances received in 20
countries were at least as
large as 11 percent of their
GDP. Tajikistan received
remittances as much as
50 percent of GDP, which
is quite a portion. It is
also found that 10 percent
increase in per capita of-
hcIuI InLernuLIonuI remIL-
tances will lead to a 3.5
percent decline in the
share of people living in
poverty.
While governments can-
not tell migrants and their
families how to spend
their own money, policy-
makers can put in place
sum cIenL IncenLIves und
mechanisms for migrants
and their families to in-
vest remittances in capi-
tal-accumulation projects
involving both human
and physical development
LIuL ure benehcIuI Lo LIe
whole country.
Another way to tap into
Myanmar migrants pop-
ulation is selling diaspora
bonds to Myanmar living
and working aboard. The
idea of diaspora bond is
nothing new. Israel was
LIe hrsL counLry Lo seII
diaspora bonds, issuing
LIem Ior LIe hrsL LIme In
1951 and boasts having
sold $33 billion worth of
bonds worldwide since
the programs incep-
tion. The Indian govern-
ment raised over $11 bil-
lion from diaspora bonds
it issued in 1991, 1998 and
2000.
These bonds were issued
to support balance of pay-
menLs und ruIse hnunc-
ing during times when
LIey Iud dIm cuILy uccess-
ing international capital
markets. Since 2001, the
government of Sri Lan-
ka has raised well over
$580 million through the
Sri Lanka Development
Bond. This scheme en-
courages citizens in the
diaspora to invest in their
home countries by pro-
viding the much-needed
revenue at lower than
market interest rates, a
patriotic discount.
Unlike remittances,
which often go towards
domestic consumption,
dIusporu bonds oer nu-
tions an avenue to couple
revenue towards infra-
structure and other devel-
opment projects. Money
generated from diaspora
bond sales can be used for
specIhc objecLIves sucI
as health care or educa-
tion or building roads and
bridges. However, the
government will need to
lay down a tangible plan
to establish an independ-
ent authority or a depart-
ment to manage the fund
that is generated from di-
aspora bond to build trust
with potential bond buy-
ers.
DeveIopmenL oI hnun-
cial infrastructure in My-
anmar such as banks,
stockmarket and other
hnuncIuI InsLILuLIons Is
critical for both private
and public sector. Less
known function of a stock
exchange is that govern-
ment can also raise bond
(debt capital) through
Myanmar stock exchange
Lo hnunce governmenL
operations and projects.
Bond is a debt instru-
ment through which gov-
ernment borrows money
from public. But sover-
eign bond is another kind
of bond that is issued to
international investors
through international
capital markets and the
total amount of bonds
sold can be $500 million
to $1 billion. On the other
hand diaspora bonds can
rake in $100 million to
$200 million.
Encouraging news
is that in 2013, a lot of
emerging economies
from Africa issued foreign
currency bonds in inter-
national stock markets:
Ghana issued $1 billion,
Rwanda $400 million,
Tanzania $500 million
and Zambia $750 million.
Most of their bonds were
oversubscribed, meaning
there were more buyers
in the market than the
amount of bonds issued.
Tapping capital from
stock market for both
government and private
institutions has never
been easy as it takes time
to prepare or restructure
Ior boLI Lo meeL LIe sLI
requirements. Before one
government can issue
sovereign bonds, it needs
to obtain credit rating
from international credit
rating agencies and it is
a daunting process, but
Myanmar government
must prepare today so
that they can start issuing
bonds in the next two to
three years time.
The rating process, as
well as the rating itself,
can operate as a power-
ful force for good gov-
ernance, sound market-
oriented growth, and the
enforcement of the rule
of law. From a business
perspective, sovereign
credit ratings serve as a
baseline for evaluating
the economic environ-
ment surrounding invest-
ment possibilities and as
a benchmark for inves-
tors to distinguish among
markets, which provides
valuable information and
a basis for evaluating
risk, said the US State
Department stressing the
importance of sovereign
credit rating for countries
of sub-Saharan Africa in
2006.
The beauty with bonds
is that their very existence
lends further credibil-
ity to the country seeking
funds, thereby encour-
aging a broader range of
high quality investment.
More credibility equals
more money, equals more
credibility, equals more
money and so on, Damb-
isa Moyo, author of Dead
Aid encourages African
countries to sell bonds for
their countries develop-
ment.
Poor countries obtain
credit ratings not only
for sovereign borrowings
but also for sub-sovereign
entities access to inter-
national debt and equity
capital. This means that
least developed minor-
ity provinces and regions
in Myanmar like Chin
or Kachin states can is-
sue their own municipal
bonds or sub-sovereign
bonds to international in-
vestors to borrow money
for their regional devel-
opment projects.
Credit rating from in-
ternational credit rating
agencies will also en-
Iunce D Inow Lo LIe
country. Vietnam issued
international bonds in
foreign currency in 2005
worth $750 million and
Vietnams FDI to GDP
rate also picked up from
around 3 percent before
2005 to over 8 percent
in 2007, and remained
above 5 percent until
2013.
But issuing interna-
tional bonds and getting
credit rating are not the
only solutions to increase
FDI. Investment in in-
frastructure is still key to
attracting FDI. Although
Indonesia issued interna-
tional bond, FDI to GDP
rate remains at the rate
of 1 percent to 2 percent.
Even if Myanmar govern-
ment can issue $1 billion
worth of sovereign bonds
in the next two years this
would still be short of the
annual infrastructure in-
vestment requirement of
$4 billion.
Kyaw Myo Htoon
(John) is a bestselling
uriter cnd c jncncicl
consultcnt. His recent
book Understanding Eq-
uit cnd Project Iincnc-
in beccme c bestsellin
business book in Myan-
mcr. He is clso c direc-
tor ct Youn & Rubiccm
cdtertisin cenc. He
ccn be recched ct: johnQ
mcnmcrpinncclejncn-
cicl.com.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
9
Myanmar Summary
SDV Enters Myanmar Market
Kyaw Min
F
rench logistics com-
pany SDV, wholly
owned by French
investment and industrial
holding group Bollor,
said it has set up a new of-
hce In Yungon In IIne wILI
its investment and expan-
sion strategy in Southeast
Asia.
TIe new om ce wenL InLo
operation on May 1.
As the country moves
toward democratic and
economic reforms, many
of our customers are ex-
ploring this region and
some of them already
took the plunge on invest-
ing massively in Myan-
mar, said Julien Loiret,
general manager, sales
and development of SDV
Myanmar.
Anticipating a strong
growth in demand for
transport and logistics
and to accompany its
customers in Myanmars
booming market, SDV
will provide its services
and solutions especially
in the oil and gas, tel-
ecom, healthcare, fashion
and retail industries, the
company said.
The opportunities
abound, in raw materi-
als such as oil and gas
but also in catering the
need, from healthcare to
telecommunication, of a
population of 62 million,
added Elizabeth Shwe,
who will be joining SDV
Myanmar as a director.
SDV said its experi-
enced sLu wIII be joInIng
SDV Myanmar to face the
challenges ahead in the
emerging market.
SDV, which spans
across 24 countries in
AsIu PucIhc, Is u Ieud-
ing supply chain man-
ugemenL hrm runkIng
among the worlds top 10
in transport and logistics
with a network of 600
sites in 102 countries. It
oers servIces IncIudIng
international transport,
customs brokerage, ware-
housing and distribution,
and supply chain man-
agement.
The company runs a
global network of 600
agencies and employs
35,700 professionals
worldwide in 99 coun-
tries. Its revenue in 2013
stood at 5.473 million.
SDV Myunmur`s om ce
is located at Kyaik Wine
Pagoda road, Mayangone
township, Yangon.
Anticipating a strong growth in demand for transport and Iogistics and to accompany its customers in
Myanmar`s booming market, SBV wiII provide its services and soIutions especiaIIy in the oiI and gas,
teIecom, heaIthcare, fashion and retaiI industries, the company said.
W
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May 8-14, 2014
Myanmar Business Today
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LOCAL BIZ
10
Myanmar Summary
Myanmar Summary
Myanmar Summary
Myanmar Summary
Gas Sector Top Revenue Earner
Phyu Thit Lwin
M
yanmars gas sector
emerged as the top
revenue earning ex-
port sector in the recently con-
cIuded hnuncIuI yeur zo1-1q,
data from the Ministry of Com-
merce showed.
Revenue from exporting gas
IIL $.z bIIIIon In LIe IusL hscuI,
according to the ministry.
Myanmars export sector is
cIussIhed InLo sIx cuLegorIes -
farm products, marine prod-
ucLs, IndusLrIuI hnIsIed prod-
ucts (including exportation of
natural gas), animal products,
forest products and mineral
products.
Export earnings from rice,
beans and pulses, corn, rubber,
castor oil, cashew nut, mango,
water melon, onion, garlic, tur-
meric and ginger amounted to
over $2 billion in the same pe-
riod.
Oil and gas sector is also the
biggest source of foreign direct
investment into Myanmar, ac-
counting for over 31 percent
of the countrys total FDI with
over $14 billion in injected capi-
tal as of March.
During 2013-14, Myanmars
foreign trade totalled $24.87
billion, with exports taking up
$11.1 billion and imports repre-
senting $13.76 billion.
Land Disputes to be Solved
According to Law: Speaker
Kyaw Min
M
yanmars Parliament
and Lower House
Speaker U Shwe Mann
has called for solving land dis-
pute in accordance with law,
saying that the government and
the parliament are now discuss-
ing ways to resolve the issue.
Addressing local people in
Pathein in southwestern Ay-
eyawaddy delta region, U Shwe
Mann admitted that the govern-
ment is facing protests against
land grabbing cases in many
areas, especially in Ayearwaddy
region.
He pointed out that there was
much unoccupied land in the
area in the past and investors
were invited to make use of it
when local people did not have
enough capital to do so.
He cIurIhed LIuL compunIes,
which cultivated at least 5,000
acres (2,025 hectares), were al-
lowed to export 50 percent of
their produce.
However, he added that some
companies had to return the
land to the government as they
were noL ubIe Lo operuLe prohL-
ably, not only in the farming but
uIso In LIe hsIery secLor.
U Shwe Mann has earlier
cuIIed Ior un eecLIve Iuw Lo
protect the rights of farmers,
saying that the law shall be fair
and practical to ensure rule of
law.
He uIso urged Lo muke eorL
to enable farmers, who make up
70 percent of the population, to
have access to adequate agricul-
tural loan at lower interest rate
stressing the need for reform to
benehL LIe peopIe.
Myanmar Railways Calls Fibre
Optic Cable Maintenance Tender
Wai Linn Kyaw
S
tate-run Myanma Rail-
ways (MR) under the
Ministry of Rail Transpor-
tation has invited tenders for
the maintenance of its optical
hbre cubIe (OC) IIne beLween
Yangon and Mandalay, an an-
nouncement said.
Myanma Railways now in-
vites tenders from reputable
local, foreign or joint venture
companies to undertake works
for maintenance and ensuring
connectivity of the OFC be-
tween Yangon and Mandalay,
a notice from the managing di-
rector of MR said.
MR eurIIer hnIsIed buIIdIng u
o-kIIomeLre opLIcuI hbre cu-
bIe buckbone by usIng hbre TU
G-652 from Yangon to Manda-
lay.
Tender documents and back-
ground information could be
obtained from the departments
omce In Yungon. EnquIrIes cun
be made at +95 9 8300073 and
+95 67 77070.
The tender in original and
duplicate copies should be sub-
mitted to the Deputy General
Manager, Supply Department,
Myanma Railways, Corner of
Theinbyu and Merchant street,
Botahtaung township, Yangon
by 2pm, Tuesday, May 27.
The applicant must also sub-
mit an electronic copy of the
tender in a CD Rom. No sub-
mission via email will be enter-
tained, the announcement said.
The government-run depart-
ment in its announcement said:
In line with the National De-
velopment Plan, the govern-
ment of Myanmar has been
identifying the economic poten-
tials to contribute to the coun-
trys economic development. As
our endeavours for national de-
velopment, Myanma Railways
(MR) is committed to establish
potential rail concerned busi-
nesses.
Timber Exports Hit
Almost $1b in 2013-14 FY
Pann Nu
T
he export of teak, hard-
wood and other timbers
reached $947 million in
LIe zo1-1q hscuI yeur, uccord-
ing to the Ministry of Com-
merce statistics.
The trade value of teak, hard-
wood, plywood and other wood
products exported overseas
amounted $916 million while
the value of timber exported
overland stood at $31 million,
according to government statis-
tics.
Teak logs were the largest ex-
port with a value of $638 mil-
lion while nearly 34,328 tonnes
of teak lumber was exported
with a net worth of $31.55 mil-
lion.
Over 590,000 tonnes of hard-
wood logs, worth $222 million,
and hardwood lumber weigh-
ing over 9,000 tonnes as well as
18,000 tonnes of plywood was
shipped abroad.
From 2001 to 2013, illegal
timber exports amounted to
16.5 million cubic metres with
a net worth of $5.7 billion, ac-
cording to a report from the
Environmental Investigation
Agency (EIA).
A plot of land on the bank of Ayeyarwaddy river.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
11
Myanmar Summary
Myanmars Education System Geared for Growth
T
he education system in
Myanmar is attracting at-
tention, as both the state
and private sector look to in-
vest in upgrading schools and
universities. The re-opening of
Yangon University to under-
graduates last December is seen
as a key development. Once
considered a leading institu-
tion in the region and home to
60,000 students, the university
saw its undergraduate teaching
suspended in the late 1990s.
Under the military dictator-
ship, the role of higher-level
education diminished. Today in
Yangon, universities have low
budgets and are spread across a
wide area making management
dImcuIL und deveIopmenL sIug-
gish.
As Myanmar looks to rebuild
its university system, coopera-
tion with international institu-
tions may be one way to secure
the necessary funds and other
resources. In October, the Ja-
pan International Cooperation
Agency (JICA) announced it
was funding a $13.5-million
initiative to improve engineer-
ing education in Myanmar, in
association with seven Japa-
nese universities. Among the
goals of the programme will be
to update syllabuses in several
subjects (such as civil engineer-
ing and electronic engineering),
while Japanese professors will
travel to Myanmar to conduct
guest lectures and lessons.
Interest in the Myanmar edu-
cation market extends far be-
yond Asia, to include both Eu-
rope and the US. In February
2013, a group of 10 American
universities, organised by the
International Institute of Edu-
cation, a New York-based non-
prohL, LruveIIed Lo LIe counLry
to explore partnerships.
According to Jacques Fre-
mont, director of the interna-
tional higher-education pro-
gramme at the Open Society
ounduLIon, u non-prohL orgun-
isation, Myanmar will need to
be cureIuI In ILs eorLs Lo Iorge
links with foreign institutions.
Will the Burmese say yes to
everyone and then lose control
of the reform agenda? Or will
they be in a position to plan and
say, Here is what we need? The
pressure is huge right now, he
told the New York Times last
year.
I nter nati onal schools
openi ng br anches
Foreign investors are already
moving into the primary and
secondary school segments,
looking to serve wealthy lo-
cal families and the expatriate
community. The British Inter-
national School plans to open a
$20,000-per-year institution in
August, which will look to sat-
isfy some of the demand fuelled
by local wealthy families and
expatriates.
UK-based Harrow Interna-
tional Management Services
and Dulwich College Interna-
tional are taking a more indi-
rect route, partnering with Sin-
gapore-listed Yoma Strategic
Holdings, which is chaired by
Serge Pun, a local businessman,
to enter the market.
The bulk of funding for the
Harrow early years centre and
the Dulwich College school, nei-
ther of which will be branded
with the UK names, will come
from Yoma.
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I nvestment i n publi c faci li -
ti es
The government appears
committed to spending money
to upgrade and expand its edu-
cation system. Under the mili-
tary junta, education received
little funding, on average ac-
counting for 1.3 percent of the
national budget. In the latest
budgeL, Ior hscuI yeur zo1zJ1,
education accounted for 11 per-
cent of the governments $7.13
billion spending.
Myunmur Ius u sIgnIhcunL
way to go in catching up with in-
ternational and regional stand-
ards. Much of the 70 percent
rural population has limited or
no access to internet, textbooks
or laboratory equipment, and,
in many cases, teachers lack the
relevant experience to deal with
overcrowded classrooms and a
weak curriculum.
Overcrowding leads to a high
rate of absenteeism, Shirley
Nang Hom Leik, Program Coor-
dinator at Nexus Myanmar, an
English training centre started
in 2010, told OBG. She added
that classroom practices do not
foster creative thought and re-
strict expression. The current
education system does not en-
courage creativity by teachers,
she said.
Movi ng for war d
Whilst decades of neglect
have left the education sector in
LuLLers, eorLs ure under wuy Lo
restore the standard of learning
that was in place before military
rule. Support is coming from far
and wide to bolster an underde-
veIoped, undersLued und Irug-
mented system. With greater at-
tention directed to the practices
and applications of foreign aid
and loans on the alleviation of
the countrys debt burden, My-
anmar will be in a more capable
position to develop its educa-
tion sector and ensure that fu-
ture generations are trained in
heIds LIuL wIII ussIsL LIe growLI
of the economy. OBG

As Myanmar looks to rebuild its

university system, cooperation with
international institutions may be one
way to secure the necessary funds
and other resources.
Students attend cIass at a IocaI schooI on the outskirts of Yangon. Myanmar has been endeavoring to promote Iiteracy as part
of its bid to raise the nation`s education standard.
U
A
u
n
g
/
X
in
h
u
a
A student practises writing at a local school in Yangon.
U
A
u
n
g
/
X
in
h
u
a
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
Myanmar Summary
From page ...(Seven)
From page ...(Seven)
As Myanmars pace
of economic and social
transformation has accel-
erated over the last two
years, UOB too has looked
to strengthen its support
for businesses expanding
into this market. Last
year, UOB established
an FDI Advisory Unit in
Myanmar to help existing
and potential clients to in-
vest in the country.
Business leaders in the
survey cited their top con-
cerns when expanding into
Myanmar as limited bank
King Power Secures
Golden Myanmar
Duty Free Deals
Phyu Thit Lwin
H
ong Kong-based King
Power Traveler (KPT)
has strengthened its
burgeonIng InIgIL duLy Iree
portfolio after gaining four new
contracts including with Gold-
en Myanmar Airlines.
The company also struck
wholesale supply service deals
with VietJet Air, Air Vanuatu
and Solomon Air.
The services will be launched
in May and June.
Golden Myanmar Airlines op-
eruLes u eeL oI Azo uIrcruILs
with plans to add a new aircraft
Lo ILs eeL every sIx monLIs; IL
will be adding A330 aircrafts
Lo ILs eeL IuLer LIIs yeur. TIe
uIrIIne operuLes severuI IgILs
a week to Singapore, Bangkok
and Kuala Lumpur with rapid
expansions to Tokyo and Hong
Kong, with Mandalay Interna-
tional Airport being its primary
base.
KPT President Rakhita Jaya-
wardena said: We have devel-
oped a good quality long-term
business with all our partners
In LIe AsIu PucIhc regIon und
LIese new uccounLs uII oer
very interesting opportunities
with quality-focused airlines.
Central Bank Hosts the First Financial
Sector Technical Assistance Conference
Pann Nu
T
he Central Bank of Myan-
mar (CBM) recently host-
ed LIe hrsL meeLIng oI
the Financial Sector Technical
Assistance Coordination Group
for Myanmar in Nay Pyi Taw.
Participants included mul-
tilateral agencies Asian De-
velopment Bank, International
Finance Corporation, Interna-
tional Monetary Fund (IMF),
Livelihoods and Food Security
Trust Fund (LIFT), the Toronto
Centre: Global Leadership in
Financial Supervision, and the
World Bank as well as bilater-
al development partners Bank
Negara Malaysia, Bank of Thai-
land, Deutsche Gesellschaft fur
Internationale Zusammenar-
beit, Financial Services Agency
of Japan, Japan International
Cooperation Agency, and the
United Kingdom Department
for International Development.
Participants expressed their
commitment to coordinating
their delivery of technical assis-
Lunce Lo LIe hnuncIuI secLor In
Myanmar, and agreed to meet
every six months.
The meeting also agreed to
establish a number of sub-sec-
toral groups to carry forward
their work plans and develop
milestones for monitoring per-
formance. Development part-
ners agreed to share their plans,
programs, and advice in order
to avoid technical assistance
duplication, and promote se-
quenced, coordinated and com-
pIemenLury ussIsLunce Lo LIe h-
nancial sector in Myanmar.
The conference follows an in-
formal donor meeting held at
the IMF in Washington, DC at
the 2013 IMF-World Bank An-
nual Meetings where the gov-
ernor of the CBM discussed the
need for increased communica-
LIon umong LIe muny hnuncIuI
sector development partners in
Myanmar.
Bungkok-Imphul Ilight Viu Munduluy in The Omng
Aye Myat
A
n InLernuLIonuI IgIL
service would soon be
started between Bang-
kok and Imphal via Mandalay
after Manipurs Tulihal Airport
was upgraded to an interna-
tional airport with the landing
oI u cIurLered IgIL oI GoIden
Myanmar in November last
year.
According to a highly placed
omcIuI source, LIe proposuI Ior
starting the trilateral interna-
LIonuI IgIL servIce wus puL Ior-
ward by the Thai Government
in view of enhancing trade and
tourism in the regions.
The Myanmar government
has given its nod to the pro-
posal, Hueiyen News Service
reported. However, the Indian
Government is yet to give a con-
ImphaI Airport (IMF), Manipur, India.
D
ir
k

L
a
u
r
e
y
s
s
e
n
s
crete response in this regard.
As per the proposal of the Thai
GovernmenL, LIe IgIL servIce
would be operated by ATR-72
aircrafts manufactured by the
French-Italian aircraft manu-
facturer Avions de Transport
Regional (ATR).
The ATR aircraft has a capac-
ity of about 80 people.
Thai Airways and Golden
Myanmar have expressed their
InLenLIon Lo operuLe LIe IgIL
service between Bangkok and
Imphal via Mandalay. How-
ever, none of the Indian airline
companies including the na-
tional carrier Air India has ex-
pressed intention for operating
LIe IgIL servIce.
TIe IgIL duruLIon beLween
Mandalay and Imphal is about
an hour.
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Myanmar Summary
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._~.q,..(IMF), Livelihoods and
Food Security Trust Fund(LIFT),
the Toronto Centre: Global Leader-
ship in Financial Supervision, the
World Ban~.q._~. :~e~
._ ..:.~_. e _e..q.. . e~ ~~ .~
. . ~ ~ .:._e.._ Bank Negara
Mal aysi a,Bank of Thai l and,
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Financial Services Agency of Japan,
Japan International Cooperation
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national Development ~._.
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Myanmar Summary
.e: .~: ~._.. ~ ..e: ~ .
~~ . duty free .._..q:..._
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hnuncIng opLIons (61 per-
cent) and the lack of clar-
ity around local laws and
regulations (53 percent).
CongIomerates beIieve that Myanmar provides an opportunity to provide goods and services to the coun-
try`s growing middIe cIass.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
Myanmar Summary
Myanmar Summary
Indebted Steelmaking Giant POSCO Drafts
Restructuring Plan to Bolster Finances
Hyunjoo Jin
S
outh Korean steelmaking
giant POSCO, hit by ris-
ing debts and three years
oI prohL decIInes, suId LIuL IL
is drafting a restructuring plan
Lo boIsLer LIe group`s hnuncIuI
standing.
Chief Executive Kwon Oh-
joon, who took the helm at the
worId`s hILI-bIggesL sLeeImuker
in March, said at the time that
he will restructure the compa-
nys non-steel businesses, after
a wave of investments and ac-
quisitions left POSCO with al-
most $40 billion of debts.
A prolonged industry down-
turn worsened by Chinas de-
celerating economy has also
deepened steel oversupply.
POSCO, backed by billionaire
US InvesLor Wurren BueLL, cuL
its sales forecast for this year af-
ter posting an 11 percent slide in
ILs hrsL-quurLer operuLIng prohL
last week.
According to media reports
earlier, POSCO was consider-
ing selling a stake in its trading
and resources arm Daewoo In-
ternational Corp, which it had
bought in 2010, for 3.37 trillion
won ($3.26 billion).
A POSCO spokesman declined
to comment on the potential
stake sale in Daewoo Interna-
tional.
POSCOs restructuring move
shows that the steel market will
remain tough for the time be-
ing, said Lee Won-jae, a steel
analyst at SK Securities. Dae-
woo International is a giant
umIIuLe, buL Ius done IILLIe Lo
conLrIbuLe Lo POSCO`s prohLs.
Daewoo International, which
operuLes gus heIds In Myunmur,
suw ILs operuLIng prohL pIunge
16 percent last year, compared
with 2010.
Indonesias 2014 Rice Output Seen at 73 Million Tonnes
Yayat Supriatna
I
ndonesia is forecast to pro-
duce 73 million tonnes of
unmilled rice in 2014, gov-
ernment ministers said, slightly
lower than a previous estimate
at 76 million tonnes due to the
scarcity of land for expansion.
Indonesias state food pro-
curement body Bulog has built
up rice stocks of 1.7 million
tonnes, Indonesias chief eco-
nomic minister Hatta Rajasa
told reporters, adding that the
agency is likely to buy from do-
mestic suppliers this year.
Bulog usually maintains rice
stocks at between 1.5 million
to 2 million tonnes to guard
uguInsL Iood InuLIon.
Indonesias unmilled rice pro-
duction was estimated at 71.29
million tonnes in 2013. Reuters
The Posco Iogo is dispIayed on a steeI sphere at the company's showroom in SeouI.
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A shopkeeper coIIects money as he sits in front of sacks of rice at a store in ]akarta.
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Thai CP All Sees Lower Sales
This Year Due to Unrest
Saranya Suksomkij
T
hailands largest conveni-
ence store chain, CP All
Pcl, said it expected sales
to grow 10 percent this year,
below the recent average of 12
percent, due to prolonged po-
litical unrest.
Sales for 2014 would be driven
by 600 new stores planned for
the year, Tasattavorakul, vice
chairman, told reporters.
Months of unrest have hurt
conhdence und consumpLIon.
CP All is controlled by Thai-
lands wealthiest man, Dha-
nin Chearavanont, and oper-
ates stores under the 7-Eleven
brand. Reuters
Charoen Pokphand Foods PcI (CP Foods) empIoyees taIk in front of signage dis-
pIayed at the company's pIant in ThaiIand.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
Myanmar Summary
Myanmar Summary
Sooth Koreu to Be Big Winner Irom Aostruliu Renery Closores
Jane Chung and
Meeyoung Cho
S
ouLI Koreun oII rehners
look the best placed to
meet extra demand in Asia
created by a series of plant clo-
sures in Australia, given they
are building up capacity and
produce the high-quality gaso-
line and diesel Australia uses.
Other major suppliers in the
region of these cleaner-burning
fuels include Singapore and Ja-
pan, but industry sources say
SouLI Koreun rehners Iuve
been the most aggressive tar-
geting Australia after doubling
exports in the past two years.
The extra Australian demand
oers u new murkeL uL LIme
when Asias fuel demand has
weakened due to a slowdown in
the economies of top fuel con-
sumers China and India.
Singapore is the top fuel sup-
plier to Australia, meeting
about half of its imports, while
South Korea accounts for nearly
u hILI und Jupun uround 1z per-
cent.
But as the Australian import
requirement rises, that leaves
more spuce Ior Koreun rehn-
ers to come in, said Alex Yap,
energy consultant at FGE Sin-
gapore, adding that Korean
rehners couId eusIIy meeL LIe
specIhcuLIons und Iud LIe spure
capacity.
Australia has seen a series of
rehnery cIosures und In some
cases facilities are being con-
verted into fuel terminals.
BP was the latest example af-
ter it said on April 2 it would
shut its 102,000 barrel-per-day
(bpd) plant in Brisbane by 2015,
blaming competition from new
megu-rehnerIes In AsIu.
Royal Dutch Shell, Chevron
Corps Caltex Australia and
Exxon Mobil Corp have also
sIuL rehnerIes In AusLruIIu over
the last few years.
The closures mean by 2015
Australia will have only four
rehnerIes wILI u combIned cu-
pacity of 448,500 bpd and is ex-
pected to become the largest net
importer of diesel and second-
largest net importer of gasoline
in Asia, importing more than
half of its fuel needs.
SouLI Koreu`s Lop rehners SK
Energy, GS Caltex, S-Oil Corp
and Hyundai Oilbank have been
investing to boost output of fu-
els such as gasoline and diesel.
AsIun rehners Iuve u cIeur
advantage on shipping costs to
Australia compared to regions
such as Europe.
Singapore, South Korea and
Japan jointly supplied 84 per-
cent of Australias 517,969 bpd
IueI ImporLs In LIe IusL hnuncIuI
year, up from 78 percent a year
earlier, Australian data showed.
South Korea saw by far the
biggest rise as its exports to Aus-
tralia rose 60 percent to 94,816
bpd, moving ahead of Japans
63,173 bpd although still well
below Singapores 274,770 bpd.
Reuters
Taiwan Economy Grows At Solid Pace, Signals
Improving Global Demand
Faith Hung and Jeanny Kao
T
aiwans export-depend-
ent economy grew at its
quickest pace in over a
yeur In LIe hrsL quurLer, duLu
showed, suggesting rising mo-
mentum in developed econo-
mies and an improving outlook
for the global tech sector.
The preliminary growth rate
of 3.04 percent in the three-
months to March 31 also indi-
cated that the islands economy
may be able to weather a slow-
down in China, its biggest mar-
ket, as exports to the United
States and Europe showed a
heartening pick up.
Taiwans economy, home to
the worlds biggest contract
chipmaker and a crucial sup-
ply chain for major electron-
ics brands, is often viewed as
a bellwether for global growth
and tech demand.
Whats eye catching was the
strong contribution of net ex-
ports, which added 1.57 per-
centage points to the overall
growth rate, said analyst of
Raymond Yang with ANZ in
Hong Kong.
TIe hrsL quurLer growLI wus
the strongest since the last quar-
ter of 2012, according to the
Directorate General of Budget,
Accounting and statistics, driv-
en by a low-base of comparison,
solid private consumption and
a steady pick up in exports.
The signs for the rest of the
year were positive, and backed
the International Monetary
Funds view that an increase
in output in richer nations will
spur the global recovery.
March exports to the United
States, Taiwans no.2 market,
rose 10.3 percent on-year, with
shipments to Europe up 10 per-
cent in both cases it was the
strongest growth rate in a year.
The increase up in shipments
provide a shot in the arm to Tai-
wans economy, which is facing
some uncertainty as growth in
China continues to slow down
this year..
The recent eye-catching re-
sults from Apple Inc, which
sources many components from
Taiwan and contracts out much
of its production of iPhones and
IPuds Lo hrms sucI us Hon HuI
Precision Industry Co Ltd, also
bodes well for the islands ex-
ports.
I still view the export picture
as good overall. Despite the rel-
ative weakness in some sectors
IIke uL puneIs, II you Iook uL
products such as semiconduc-
tors and chips, were still doing
quite well, said Rick Lo, senior
economist of Fubon Financial
Holdings. Reuters
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
Myanmar Summary
Unfazed by Weak Yields, Airasia X Bets on Scale to Win
Yantoultra Ngui
A
irAsia X Bhd, the long-
haul arm of Malaysian
budget carrier AirAsia
Bhd, is betting its dual strategy
of scale and multi-country hubs
will make it the regions domi-
nant airline and help it survive
the short-term impact of declin-
ing yields.
We are deliberate in our
strategy of expanding aggres-
sively, especially in 2014. This is
the business where, basically to
succeed, youve really got to be
number one in your segment,
said AirAsia X Chief Executive
Azran Osman Rani Azran.
If youre number three or
number four, it is going to
be very hard ... thats proven
around the region, in America
and Europe and how AirAsia
continues to survive in South-
east Asia by being more than
double the size of other low-
cost carriers, Azran told Reu-
ters in an interview.
Steep price cuts by rival Ma-
laysian Airlines on medium and
long-haul routes last year hit
passenger yields at AirAsia X,
forcing it to discount fares to
maintain load factors.
Naturally there is short-term
pressure on yields because typi-
cally every new capacity that we
add in takes at least 12 months
to break even, Azran said. And
build long-haul bases on the
back of AirAsias extensive
sIorL-IuuI neLworks und umII-
ates in the region, focusing on a
corridor of demand from North
Asia to Australia via Southeast
Asia.
It expanded capacity by 49
percent in the fourth quarter
and plans a 40 percent increase
for 2014, up from 19 percent
overall in 2013, before scaling
back later on, said Azran.
In December, AirAsia X placed
a $6 billion order for 25 Airbus
A330-300 aircraft to challenge
network carriers. It expects to
end LIe yeur wILI u eeL oI z
and operates 21 planes now.
The landscape is getting
crowded though. Scoot, the
medium and long-haul budget
airline ownedby deep-pocketed
Singapore Airlines, is taking de-
IIvery oI LIe hrsL oI ILs zo Boe-
ing 787 Dreamliner jets this
year as it expands services.
AirAsia X also faces compe-
tition from Qantas Airways
budget subsidiary, Jetstar, and
PIIIIppIne currIer Cebu PucIhc
Air.
New entrants are com-
ing into the space. We have to
make sure we are really ahead
of them in terms of size, scale
and branding, said Azran, who
was handpicked by AirAsias
co-founder, Tony Fernandes, to
run the long-haul carrier.
WIen we hnIsI LIIs yeur
so our portfolio is roughly about
two-thirds above matured and
prohLubIe und one-LIIrd oI LIe
business is still new, he said.
Bi g ambi ti ons
Seven-year-old AirAsia X,
wIIcI Ies Irom KuuIu umpur
to Saudi Arabia and 18 destina-
LIons In LIe AsIu-PucIhc regIon
including points in Japan, Chi-
na and Australia, has been the
most ambitious of long-haul
budget carriers in expanding its
eeL und rouLes.
It plans to open a Bangkok-
bused umIIuLe, TIuI AIrAsIu X,
in June, followed by an Indone-
sIun umIIuLe IuLer LIIs yeur.
The airlines strategy is to
with 25 aircraft we will to be
more than double the size of
the next biggest competitor. We
would have launched two hubs
in Thailand and Indonesia and
with a three-hub model that I
think is far superior than all the
other competition. Reuters
South Korea to Lend Out Part of
$354 Billion Foreign Reserves
Yantoultra Ngui
S
outh Korea unveiled last
week hnuI deLuIIs oI u pIun
to lend up to $10 billion
of its $350 billion-plus foreign
currency reserves to eligible
local companies to import pro-
ducLIon equIpmenL or hnunce
overseas projects.
The plan will provide South
Korean companies with for-
eign currency funds at below
commercial rates to invest in
domestic production facilities,
overseas buildings and plant,
LIe hnunce mInIsLry suId In u
statement.
Under LIe hnuIIsed pIun, 16
domestic banks and 12 branch-
es of foreign banks operating in
the country would begin lend-
ing foreign-currency funds to
eligible companies from next
month for a maturity of up to 10
years at favourable terms.
The lenders would receive the
foreign currency funds from the
government at lower interest
rates than they would otherwise
have to pay when borrowing
from the markets.
TIe pIun wIII be eecLIve Ior
one year.
South Koreas foreign-curren-
cy reserves stood at a record
$354.54 billion at the end of
March. As of the end of Feb-
ruary, South Korea had the
worlds seventh-largest foreign
reserves.
Emerging-market economies
including South Korea have
boosted foreign-currency re-
serves as a defence against cap-
ILuI IgIL In LImes oI economIc
stress, but the growing costs of
keeping the reserves have often
been criticised as wasting tax-
payers money.
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....q:.~,e.,_...._~:...
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. . AirAsiaX Bhd ~.,_e . .
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~:._e ...~. ~~:._~...
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
16
Australias Horizon Oil And Roc Oil Agree to Merge
Maggie Lu Yueyang
A
ustralian oil and
gas producers Ho-
rizon Oil Ltd and
Roc Oil Company Ltd have
agreed to merge to form a
single, Asia-focused ener-
gy company worth A$800
million ($740 million),
the two companies said.
The merged group
which will have assets in
China, Papua New Guin-
ea, Malaysia, Myanmar,
Australia and New Zea-
land will be better po-
sitioned for growth than
either company on a stan-
dalone basis, the compa-
nies said in a statement.
This transaction repre-
sents a unique and com-
pelling opportunity to
bring together two com-
panies with highly com-
plementary assets to cre-
ate a new Asian-focused
mid cap E&P (exploration
and production) cham-
pion, said Roc chairman
Mike Harding, who will
be the chairman of the
merged group.
Under the agreement,
Horizon shareholders will
receive 0.724 Roc shares
for each Horizon share
they hold and will own
about 58 percent of the
merged group after the
merger is complete. Roc
shareholders will own the
other 42 percent.
Horizon generated 66
percent of its 2013 rev-
enue from New Zealand
developments and 34 per-
cent from China, while
Roc earns 76 percent of
its revenue from China, 11
percent from Asia and 7
percent from the UK, ac-
cording to Thomson Reu-
ters data. Reuters
Myanmar Summary
_..._~...q, . .:~.:~
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Worlds Costliest Cities: Sydney and Melbourne Ranked in Top 10
S
ydney and Mel-
bourne rank among
the top six most ex-
pensive cities in the world
to live, according to the
Economists latest World-
wide Cost of Living Sur-
vey.
The bi-annual survey,
carried out by the busi-
ness magazines intelli-
gence unit, ranked Sydney
us LIe hILI-mosL expen-
sive city in the world, with
Melbourne one spot be-
hind in equal sixth.
Singapore took the du-
bious honour of top spot,
followed by Paris, Oslo
and Zurich.
Perth and Brisbane
shared 21st spot while Ad-
elaide came in at 37th.
The survey of 131 cities
assessed costs by compar-
ing more than 400 indi-
vidual prices across 160
products and services.
These included food,
drink, clothing, house-
hold supplies, rents,
transport, utility bills and
recreational costs.
Currency ucLuuLIons
and rising prices can have
a big impact on results.
A 40 per cent rise in the
Singapore dollar over the
past decade, for instance,
saw the city sweep to the
top of the rankings.
As well as Singapore,
there have been sustained
increases in the cost of
living for Australian cities
driven by the long-term
appreciation of the Aus-
tralian dollar, the survey
notes.
Despite a slow decline in
the value of the Austral-
ian dollar in the past year,
Sydney and Melbourne
continue to maintain
their lofty positions in the
global rankings due to on-
going price hikes.
By comparison, New
York clocks in at the rela-
tively modest position of
26th most expensive.
At the other end of the
scale, the least expensive
cities include Kathman-
du, Jeddah and Riyadh.
Mumbai in India is the
worlds least expensive
city.
Bucharest in Romania
is Europes one member
in the bottom 10, and
Panama City the lowest-
ranking member from the
Americas.
Within Asia the best
value for money is in the
Indian subcontinent, the
report says.
However, it comments
drily that outside India,
bargain hunters may be
puL o puL o by LIe se-
curity risk in many of the
countries in which the
worlds cheapest cities are
found.
Pakistan, Nepal, Syria
and Algeria all feature in
the bottom 10, but have
had well documented se-
curity issues or domestic
unrest.
However, one exam-
ple that points to a de-
gree of uncertainty in the
methodology of how the
Economist draws its con-
clusions is the case of Ca-
racas.
By current calculations
the Venezuelan capital is
joint sixth most expensive
with Melbourne, Geneva
and Tokyo.
However, this is en-
tirely based on using the
beleaguered Venezuelan
governmenL`s omcIuI ex-
change rate for its cur-
rency, the bolivar.
TIe currenL omcIuI
valuation of the bolivar,
at 6.29 to the US dollar,
is undermined by black-
market rates valuing the
currency at less than one-
tenth of this amount, the
report says.
As a result, adopting
any parallel rate for the
bolivar would immedi-
ately place Caracas as
the worlds cheapest city
rather than the current
deceptive position it has
as the joint sixth most ex-
pensive. AC
Myanmar Summary
R
e
u
t
e
r
s
.. ., . . . , ._. .~: .:.
._ ~. :..'~ ., .q ~
~_~ ._. . ._. _~ ..:._e. ._~: .
Economist -~.:.,.
.q ~ .. .:.~ ~q . q._ .
. . . . ~. .|_.. . ._ ~. .|
.. .:. ._ Economist . .. :.
.q.. ~ .. _.. . _. ._e. _. .Sydney
_. ._ , .|~ |..,q:. . . , .
_. ._ , .|~ ._.:~ .,q:~ _e
~....q.~_.~q._.
.~:.~.,_e .....~
~ ~ ...,q:~ q. ~_ .,
_.. .q. .~:... ~.q._.
.:.~.,_e .~e ~~e.
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~_ .~ q ._ ..|~ . q. , .
_..~:.:.~.,_e ~. ~
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~'~ . ~, ..: . ~ . .... , .
..|. ,~~ ~~..'~ ~~
.~ :._. ._e. ._ .
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
China Poised to Pass US As Worlds Leading Economic Power
Chris Giles
T
he US is on the brink
of losing its status
as the worlds larg-
est economy, and is likely
to slip behind China this
year, sooner than widely
anticipated, according to
the worlds leading statis-
tical agencies.
The US has been the
global leader since over-
taking the UK in 1872.
Most economists pre-
viously thought China
would pull ahead in 2019.
TIe hgures, compIIed
by the International Com-
parison Program hosted
by the World Bank, are
the most authoritative
estimates of what money
cun buy In dIerenL coun-
tries and are used by most
public and private sector
organisations, such as the
International Monetary
und. TIIs Is LIe hrsL LIme
they have been updated
since 2005.
After extensive research
on the prices of goods
and services, the ICP con-
cluded that money goes
further in poorer coun-
tries than it previously
thought, prompting it to
increase the relative size
of emerging market econ-
omies.
The estimates of the real
cost of living, known as
purchasing power parity
or PPPs, are recognised
as the best way to com-
pare the size of econo-
mies rather than using
volatile exchange rates,
wIIcI rureIy reecL LIe
true cost of goods and ser-
vices: on this measure the
IMF put US GDP in 2012
at $16.2tn, and Chinas at
$8.2tn.
In 2005, the ICP thought
Chinas economy was less
than half the size of the
US, accounting for only
43 per cent of Americas
total. Because of the new
methodology and the
fact that Chinas economy
has grown much more
quickly the research
placed Chinas GDP at 87
per cent of the US in 2011.
For 2011, the report
says: The US remained
the worlds largest econ-
omy, but it was closely
followed by China when
measured using PPPs.
With the IMF expect-
ing Chinas economy to
have grown 24 per cent
between 2011 and 2014
while the US is expected
to expand only 7.6 per
cent, China is likely to
overtake the US this year.
TIe hgures revoIu-
tionise the picture of the
worlds economic land-
scape, boosting the im-
portance of large middle-
income countries. India
becomes the third-largest
economy having previ-
ously been in tenth place.
The size of its economy
almost doubled from 19
percent of the US in 2005
to 37 per cent in 2011.
Russia, Brazil, Indone-
sia and Mexico make the
top 12 in the global table.
In contrast, high costs
and lower growth push
the UK and Japan further
behind the US than in the
2005 tables while Germa-
ny improved its relative
position a little and Italy
remained the same.
TIe hndIngs wIII InLen-
sify arguments about con-
trol over global interna-
tional organisations such
as the World Bank and
IMF, which are increas-
ingly out of line with the
balance of global econom-
ic power.
When looking at the
actual consumption per
head, the report found the
new methodology as well
as faster growth in poor
countries have greatly
reduced the gap between
rich and poor, suggesting
that the world has become
more equal.
The worlds rich coun-
tries still account for 50
percent of global GDP
while containing only 17
per cent of the worlds
population.
Having compared the
actual cost of living in
dIerenL counLrIes, LIe
report also found that
the four most expensive
countries to live in are
Switzerland, Norway,
Bermuda and Australia,
with the cheapest being
Egypt, Pakistan, Myan-
mar and Ethiopia. IT
Russia Sees No Immediate Impact on Hi-Tech Firms from Sanctions
Lidia Kelly
R
ussIun hnunce
minister Anton Si-
luanov said he sees
no immediate impact on
Russias high tech com-
panies from US sanctions
imposed last week.
I cannot see at the mo-
ment that any companies
wIII suer, SIIuunov LoId
journalists at the Federa-
tion Council.
US President Barack
Obama said on Monday
that Washington would
target some high tech ex-
ports to Russia as part of
new sanctions over the
crisis in Ukraine, where
the West says Russia is
fomenting separatist un-
rest.
R
e
u
t
e
r
s
Russian nance minister Anton SiIuanov said he sees no immediate
impact on Russia`s high tech companies from US sanctions.
B
lo
o
m
b
e
r
g
Russias President
Vladimir Putin said last
week that Russia will be
able to replace any de-
fence industry imports
lost due to the Ukraine
crisis with its own prod-
ucts. Reuters
Myanmar Summary
q q:._:.q.~, _~. Anton
Siluanov ~ e. ~.~ ~~ .
~..q ~, . . q q :.. -
,_.._:~.~_~..:... .. :.
.q. . ~ . . ~ _ . . ~..'
.q:~ . q . . ._ e ._ . .
._~: .._.:_~:.. ._.
e~ ..q.q ..~: . ~ .~ .
.:~ .:.. .~ . . ~~,
.~: .~: . ~. , . :e ~ . ~ .
,. ,:. . .:.q~:..~ .|.''e
,.~._.:_~:..._.
~..q~,.~.,_e e.
. . ~~ . ~. : . .. :..q.~ ~:.
~_~.....,q:~:. ~,~
. . .~ . qe e q ._~:.
~. : .:q .~e:._.. .q..~.
- .:q..:.~q .q._.
~..q ~, . ~.,_e ~
...~ _-~,.~:. .~:
_e~ _. .. , . .~ ~:~. : ~ ~:.
_~ .. ~_e. q. ~_ .,_. ._e.
._ .. .. :..q.._:q .:.._
e.~ ~,~.~:. ~~
. . . ~ ~. : . .. :..q.~ ~:.
_~ .. _e. .:._ e ., . , .:.
_.._e.._.
~. : ~ . _. . . ._
International Comparison
Program -~. .|.:q .~e:.
.:.._ ._._.._~.._
.~ _ ._ . .:.~ . .. .
_. .~:.~_._ _._ . q:. ._~.
q, . . ~e ~._. (IMF) ~ .
..: ~e~._..:.- ....
~..'~ .,.,.~~.~:.
_. ._e. ._ . ~. .|.. .:.
._ ~~ ....,:~...
... ._., ._ .~ _. .._ .
_e.._.
IMF ~.,_e ~~~ . . . .
~~, . . . _~:.~ ~, ~ .
- ...:..q.~:. , q:..,.
_. ~~ .:._ e ., . , .:._. .
~..q~,..:. ... '
q:. . , ..:_. ~~ .:. ._~: .
., . , .:.._ .
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
Myanmar Summary
Contd. P 19...(Light Reasons) Contd. P 19...(Light Reasons)
Eight Reasons Deloitte Thinks Southeast Asia Is Poised to Grow
C
haly Mah Chee Kheong
is CEO of Deloitte South-
east Asia and Regional
Managing Director of Deloitte
AsIu PucIhc. MuI provIded IIs
pan-Asia insights at the 2014
Milken Institute Global Confer-
ence. He believes ASEAN mem-
ber nations are well positioned,
China has moderate rational
puIn uIeud, LIe Truns-PucIhc
Partnership remains an inter-
esting yet incomplete idea and
the ASEAN Economic Commu-
nity could be regionally game
changing.
1) Chi na r efor mi ng
Mah believes Chinas outlook
is short term pain, long term
gain. President Xi Jinping has
made clear he is looking for
more sustainable growth and
more inclusive growth and this
wIII necessILuLe some reconhg-
uring. For example, geographic
dIversIhcuLIon oI IndusLry wILI-
in the country means pushing
more industry west where la-
bour costs may be cheaper but
logistical costs of transporting
goods will be higher (than in
coastal cities). Also, President
Xi Jinping has said he wants
to restructure Chinas state-
owned enterprises (SOEs) but
Mah says theyre not ready to
compete to global standards
and this will be a lengthy pro-
cess. Mah points out that dur-
Ing LIe gIobuI hnuncIuI crIsIs In
2008, the Chinese government
told the banks to put money
into the system which wound
up largely in the hands of SOEs
and real estate investments,
both now areas requiring re-
forms alongside the non-per-
forming loans (NPLs) situa-
tion. This all said, while China
will have some lumpiness that
will be felt through the region,
Chinas long-term outlook will
be better if President Xi Jinping
succeeds with his agenda.
2) J apanese compani es
geogr aphi c expansi on
A knock on eecL oI CIInu-Ju-
pan political tensions combined
with the Chinese slow-down is
LIuL Jupunese hrms ure dIver-
sifying away from China as op-
portunities present themselves.
Japanese business that would
have previously opened another
factory in China are now mov-
ing to Vietnam, Thailand, Indo-
nesia and more recently Myan-
mar. Mah just set up a Deloitte
omce In Myunmur LIIs yeur und
rapidly recognised they need-
ed one Japanese speaker on
sLu, LIen reuIIsed LIuL wus noL
enough and now has two.
3) Manufactur i ng r otati on
With manufacturing costs
moving higher in China, a num-
ber of countries with cheaper
Iubour cosLs ure benehLLIng:
Indonesia, Cambodia, Vietnam,
Bangladesh and Myanmar. All
of these countries have large
populations with young work-
ing populations. For skilled
labour, this is migrating to In-
donesia and then some to the
cheaper Vietnam. Bangladesh
has predominantly become
a garment centre. Myanmar,
which is only recently opening
up, promises to provide a new
centre of cheap labour.
qJ Trons-Pocipc Portner-
shi p
TIe Truns-PucIhc PurLner-
ship (TPP) began as a free trade
agreement between Brunei,
Chile, New Zealand and Sin-
gapore. Subsequently, it has
broadened with Australia, Can-
ada, Japan, Malaysia, Mexico,
Peru, Vietnam and the United
States joining at the negotiat-
ing table. With at least another
eight countries expressing in-
terest, the TPP has the potential
to become a broad free trade
agreement between many coun-
tries. However the question re-
mains how long it will take to
complete. While much has been
made of China not being a party
to TPP negotiations, Mah thinks
(a) China already has trade
agreements with ASEAN coun-
tries that will give it a backdoor
into the TPP trade arena and (b)
that if the TPP is in fact estab-
IIsIed und eecLIve LIuL CIInu
will push for and gain inclusion.
5) ASEAN Economi c Com-
muni ty
The ASEAN Economic Com-
munity (AEC) aims to emulate
the successes of the European
Unions aspects of free trade
and closer relationships while
avoiding the pitfalls of the Eu-
ropean Union such as a com-
mon currency. The AEC will
include the ten ASEAN coun-
tries of Brunei, Cambodia, In-
donesia, Laos, Malaysia, My-
anmar, Philippines, Singapore,
Thailand and Vietnam. The
target date to launch this com-
munity is December 31, 2015.
While Mah thinks they may not
get everything in place by then
they had hoped, there should
be at least one or two pieces
of the economic community
plan in place by then to launch.
This will create a community
of about 600 million people,
about 100 million people larger
than the EU or approximately
half of the population of either
China or India. Mah foresees
this becoming a very power-
ful economic area that should
benehL uII member-sLuLes.
6) Cor por ate and publi c
debt
Concerns were expressed ear-
lier in the day at Milken Insti-
tute Global Conference that the
low rate environment in global
credit markets has covered up
the need for economic reforms
in emerging economies. Mah
Cars at a street in Hanoi, Vietnam.
J
u
s
t
in

M
o
t
t
/
B
lo
o
m
b
e
r
g
ASEAN nations` Hags in ]akarta, Indonesia.
G
u
n
a
w
a
n

K
a
r
t
a
p
r
a
n
a
t
a

The ASEAN Economic Community

(AEC) aims to emulate the success-
es of the European Unions aspects
of free trade and closer relationships
while avoiding the pitfalls of the European
Union such as a common currency.
Deloitte ~.q.~:~:q- ~.
..:~q:q... Deloitte ~:q
..e....q:...:,_~:..q.
. . Chaly Mah Chee Kheong ~.,
_e ~~, ... Milken Institute
Global Conference ~ ~:q...
. q:~~ ~ , .-~_. .:.~:. ._.:
_~:..._.
Mah ~.,_e ~,~.~..'
~_..: .q~~,: .qq_~.:
(Short termpain, Long termgain)
_e. ._ .~, ~ .. ~~.,_e . ~:.
...:~._ ~.~~.. ~:...
.|~ ._ ~ .~~ . ~. . _e. ..'..q,
. ~. ._ _. . . .:._.. . q, q .. .
. ~_. q . _e. ._ .~, ~ .. ~~.,
_e ~,~.-~..q...,..:.
~:. _.,.__...._. ...:
, .~ ~.,_e ~. : ,_ ..,. .:..
e _. . q, ~. . ._e. ...._~: .
Mah . _..~...:.._.
~, ~ . ., ~ - . .q.~ ..:.
. ~, ~ . - . .. :..q.~. ..:.
._ .,..,..:.~:. ~,~._
,.~-~.~.q.q._.,q:.e~
e e..:..._..,..,..:.
~.,_e e. ~ ~, ~ . ~ .~ ,
.:.e . . . ..: ._ . e. ~.| - e~
,. . ~.,.q:.. _.,.:.
~.. .q._.:..:_~_._e.._.
~, ~ . ~ ~ . . . .q~_. ~~
.:._ . ~. .. ~:...~ .:._
~.,.q:. ~..:..e:. -e~,.
.:...q. _.,.:~._ .q..e
.q:.:. _e..:._. ..:.._
. ..q.:._.:.._ . .:._e. _. . . e
...:.~.:.~_.:.q._..:._e.
._.
Trans-Pacifc Partnership (TPP)
~.,_e ._~:....~ ,.. ..
,e.~.,. .~:...:.. ~,
. e . ~ .. . .:.. .:. .~ .. . .
._. ~_. _..._~.. ~.,.|
., ....q :. .~ . ~ . , . -e~ ,.
. ~..q ~, ~ . .. ... .. ~ .|~
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
Myanmar Summary
David Mayes
T
here is a lot written about
obLuInIng hnuncIuI Iree-
dom (often included in
the pitches of various business
opportunities), and it generally
is thought of as the end goal of
most of our human endeavours
related to business and invest-
Ing. WIuL exucLIy Is hnuncIuI
Ireedom? dehne IL busIcuIIy us
the point in life where money
no longer becomes an issue in
deciding how, where, and with
whom you choose to spend your
time. Notice that the important
purL In my dehnILIon Is LIuL
earning money becomes com-
pletely removed from the equa-
tion.
TIe LIIng ubouL hnuncIuI
freedom is that its essentially
a function of income and ex-
penses. It is very dependent on
the standard of living you de-
sIre. I you need Lo y uround
the world, spending winters in
Switzerland on the slopes punc-
tuated by shopping sprees in
Paris, the level of income need-
ed Lo become Iree hnuncIuIIy Is
going to be a lot higher. Look-
ing only from the expenses side
of things and at the extreme
end, the easiest way to achieve
hnuncIuI Ireedom Is Lo move Lo
a remote mountain top and live
out your days as an aesthetic
hermit.
I dont think thats what most
of us have in mind when we
envIsIon hnuncIuI Ireedom,
however most of us have very
little control over our own ex-
penditures and often let them
be dictated by society. Avoid-
How to Obtain Financial Freedom
ing simple, needless, societally
reinforced wastes such as trad-
ing in your depreciating vehicle
every few years to keep up with
the Jones family is a good start.
Buying a new car and driving
it for 15 years makes economic
sense, yet how many people do
you know that do that?
For most of us, it is pretty easy
Lo hnd ureus In our IIves wIere
needless expenses can be re-
moved. However some things,
such as international educa-
tion for your children, may not
be an area you are comfortable
being cheap. Thus we can only
do some much on the expense
side of the equation by living
IruguIIy. SInce hnuncIuI Iree-
dom means having the ability
to do what you want, where you
want, and with whom you want,
having those upper end luxu-
ries within reach means living
in a cave doesnt quite go far
enough to be considered real
hnuncIuI Ireedom (uILIougI uL
least you would have escaped
the rat race).
Income is the main driver of
hnuncIuI Ireedom, so Iong us
you keep the expenses under
control. Not all income is equal,
and one form of income can
ucLuuIIy keep you In hnuncIuI
bondage even as your overall
wealth continues to grow. Ac-
tive income is income you need
to work for in order to earn. It
is your salary or a salesmans
commission. Stop working or
selling tomorrow and the well-
spring goes dry. The fear of it
going dry forever keeps many
people on the wheel of chas-
ing active income. This is where
the majority get their money
and why they fail to achieve real
freedom. There can never be
enough. Passive income, on the
other hand, is money that you
do not need to physically do an-
ything to earn. It is the result of
some asset you own generating
the income for you. People who
gather passive incomes eventu-
uIIy become hnuncIuIIy Iree.
r
ic
h
d
a
d
e
d
u
c
a
t
io
n
b
lo
g
.
c
o
m
The ideal situation to end up
wILI u dIversIhed mIx oI pussIve
income generating assets, with
some InuLIon proLecLIon buIIL
in. Interest bearing deposit ac-
counts, income generating real
estate, dividend paying stocks,
government and corporate
hxed Income securILIes, pen-
sions, patents, royalties; these
are all examples of passive in-
come generating assets. They
each have their own risks and
durIng dIerenL pIuses oI LIe
business cycle it is best to limit
exposure or even avoid certain
asset classes altogether. At the
moment 12 month deposits in
developed currencies and most
conservuLIve hxed InLeresL In-
vestments arent doing much,
but the time will come again
when these will produce ad-
equate risk adjusted returns.
Dont extrapolate the current
situation into the future when
creating your long term strat-
egy. Mathematically speaking,
as long as your passive invest-
ments earn more each year than
your expenses, your overall
wealth will compound and you
wIII remuIn hnuncIuIIy Iree Ior
as long as you live.
David Mayes MBA provides
ueclth mcncement sertic-
es to expatriates throughout
Southecst Asic, jocusin on
UK Pension Trcnsjers. He ccn
be recched ct dctid.mQjcrc-
mond.com. Icrcmond UK is
reulcted b the ICA cnd pro-
tides cdtice on pensions cnd
tcxction.
From page 8...(Light Reasons) From page 8...(Light Reasons)
makes a counterpoint to this
that the level of corporate debt
in Asia today is less than im-
mediately preceding the 1997
AsIun hnuncIuI crIsIs. rom LIe
standpoint of public debt, Mah
would see points of concern in
countries that have public debt
that is 50 percent of GDP or
greater such as is found in Viet-
nam, Malaysia, India, the Phil-
ippines and Japan. Mah sees
Singapore, Hong Kong, China
and Indonesia among those on
secure footing with low debt to
GDP ratios.
7) The Vi etnam excepti on
Vietnam presents a special
cuse. MuI uLIy sLuLes LIe NP
situation in Vietnam is far more
serious than that of China. The
government of Vietnam has ad-
mitted that it did mismanage
its economy and has been mak-
Ing eorLs Lo hx LIIngs. WIIIe
it looks like Vietnam may be
turning a corner after a chal-
lenging period, the overhang of
the NPLs is still in play and re-
muIns InsumcIenLIy resoIved by
the government.
8) Pr oj ecti ng gr owth and
wi nner s
The IMF projects that devel-
oping Asia is the region that will
have the fastest GDP growth
over LIe comIng hve yeurs. TIe
three economies Mah has the
most positive outlook for in
the region are the Philippines,
Indonesia and Myanmar. Mah
was recently in the Philippines
and came away noting people
there are bullish and feel very
good about where the economy
is going. The Philippines GDP
grew 7 percent last year and
Mah sees the potential for the
Philippines to regains its sta-
tus as an economic hub if they
cun hx LIeIr poIILIcs. ndone-
sias promise is a large middle-
income young population in a
country of 250 million people
with 5 percent GDP growth.
Mah acknowledges that My-
anmar is a higher risk higher
reward prospect. In Myanmar
much hinges on the results of
next years elections. Mah fore-
sees political risk both if Aung
San Suu Kyis party wins or los-
es. If she loses, there will be dis-
appointment from the west. If
she wins, it is unclear that there
is enough depth in her party to
be able to run the country.
As a composite view of a region
with varying degrees of stabil-
ity, Mah makes a case that the
strength across Asia may now be
seated in the ASEAN countries
that geographically sit between
India and China. Prospectively,
there is the underlying case that
the Asian region is in a stronger
position to withstand future
shocks because the heritage of
LIe 1qq; AsIun hnuncIuI crIsIs
has been taken to heart. The
AEC and TPP may both provide
economic boosts to the region in
the intermediate term that com-
pound over time. Iorbes
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Myanmar Summary
Myanmar Summary
Cisco Investments Commits $150m to Start-Up Companies
Sarah McBride
C
iscos corporate venture-
capital arm said it would
deploy $150 million to
start-up companies over the
next two to three years, acceler-
ating its investments into areas
such as Internet-enabled com-
munication between objects.
That theme, also known as the
Internet of Things, will com-
plement other Cisco investing
themes such as big data and
connecting mobile devices, Cis-
co senior vice president for cor-
porate development Hilton Ro-
manski told reporters last week.
The amount, coupled with
$100 million that Cisco said
in January it would deploy to
start-ups in those areas, puts
Cisco Investments on par with
mId-sIzed venLure cupILuI hrms.
San Jose-based Cisco, known
for networking equipment, also
announced two new invest-
ments in the Internet of Things.
It took part in a $7 million in-
vestment in Everything, a Lon-
don-based company that con-
nects products to the Internet.
It also joined a $14.5 million
funding round for Ayla Net-
works, a Sunnyvale, California-
based company that helps com-
panies monitor devices using
the internet.
The networking giant said it
would increase its investment
in Alchemist Accelerator, a San
Jose, Calif-based incubator for
start-up companies, with a goal
of supporting companies work-
ing on the Internet of Things.
Critics of corporate venture
investing say the companys
involvement can sometimes
taint a start-up, for example, by
puLLIng o compeLIng compu-
nies from using the start-ups
products. But fans say the im-
primatur from a big established
company helps start-ups build
credibility. Reuters
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One of Asias Final Frontiers Poised for Growth
Jennifer Meszaros
L
ong hindered by political
and economic sanctions,
Myanmar has emerged
as one of the remaining fron-
tier markets in Southeast Asia.
Since the 2012 elections, the
Thein Sein Administration has
taken great strides to unlock the
countrys economic and tour-
ism potential. The result has led
to a highly competitive market
in just two years.
Eight local carriers serve My-
anmars domestic market and
three more Apex, FMI and
Saga all plan to launch opera-
tions this year. A ninth carrier,
Myanmar Airways Interna-
tional, operates scheduled in-
ternational service to Southeast
Asian destinations.
State-owned national carrier
Myanma Airways operates the
IurgesL eeL, wILI u combIned
total of 12 aircraft, including
four ATR turboprops and a
Fokker F-28. The carrier plans
Lo Ieuse 1o BoeIng ;;s, LIe hrsL
of which it expects to arrive in
2015. While the carriers sole
international destination re-
mains Gaya, India, the airline
harbours ambitious plans to
expand into the relatively un-
derserved North Asian market
by 2015. Myanma boasts the
countrys largest domestic net-
work, serving 24 airports from
its hub, Yangon International
Airport.
Last year Yangon captured 47
percent of the total domestic
travel and nearly all interna-
LIonuI Lrumc In und ouL oI My-
anmar.
Air Bagan and Air KBZ lead
in weekly seat capacity, com-
bining for 60 percent of the
market. However, local carri-
ers have struggled to make a
prohL. OuL oI LIe 1o members
of the Association of Southeast
Asian Nations (ASEAN), My-
anmar posts the lowest domes-
tic load factors. However, last
year the country attracted $4
billion in foreign direct invest-
menLs wIIIe pussenger Lrumc
increased by nearly 50 percent.
Although an overwhelming ma-
jority of visitors travelled by
land, combined tourist num-
bers surpassed 2 million. The
government expects 3 million
visitors by this year.
The expectation of such rapid
tourism growth and Myanmars
proximity to India, China and
mainland Southeast Asia means
tremendous potential for inter-
national markets. The countrys
leaders aim to transform Yan-
gon into a major ASEAN hub
by 2020 with new air service
agreements, the promotion of
national airlines, network ex-
pansion and infrastructure im-
provements. The government
has invited private sector par-
ticipation in some 30 airport
development projects.
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PeopIe cross a 2U-Iane highway in Myanmar`s capitaI Nay Pyi Taw.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
Myanmar Summary
Myanmar Summary
Switzerland, Norway Are Worlds Most Expensive Economies
Wai Linn Kyaw
S
witzerland and Norway
are the worlds most ex-
pensive economies, fol-
lowed by Bermuda, Australia
and Denmark, according to a
new ranking by the World Bank.
The economies with the low-
est prices are Egypt, Pakistan,
Myanmar, Ethiopia and Laos,
according to a review of eco-
nomic data which seeks to
compensate for exchange rate
eecLs und meusure spendIng
power across countries.
The United States, the worlds
largest economy, was in rela-
LIveIy uordubIe zLI pIuce,
lower than most other high-in-
come countries.
The richest countries, or those
with the highest gross domestic
product (GDP) per capita on a
purchasing power parity basis,
were Qatar, Macao, Luxem-
bourg, Kuwait, and Brunei.
Eight countries, including
Malawi, Mozambique and Libe-
ria, had GDP per capita of less
than $1,000.
Almost half the worlds $90.6
trillion in total economic out-
put in 2011 came from low- and
middle-income countries, the
World Bank said.
Compared to the last time the
exercise was done in 2005, with
u sIIgILIy dIerenL meLIodoIogy
and mix of countries, middle-
income countries gained a big-
ger share of the world economy,
at the expense of both high- and
low-income peers.
Shoppers waIk aIong KarI ]ohans Cate, the main shopping street in UsIo, Norway.
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What Myanmar Needs from ADB
Eaimt Phoo Phoo
A
fter decades of iron-
hsLed mIIILury ruIe und
international isolation,
Myanmar began to emerge
from the shadows with political
reforms in late 2010.
Most observers welcomed the
process, which soon brought
the lifting of international eco-
nomic sanctions against the
country, while others continue
Lo doubL LIe eecLIveness und
credibility of changes being
implemented by practically
LIe sume omcIuIs LIuL jusL Iour
years ago were against any type
of change that would question
their grip over power.
While the debate continues,
whats clear is that the govern-
ment faces myriad challenges
in implementing the much-
needed reforms, which not only
include promulgating new laws
and updating old legislation,
but also putting in place the
correct regulatory framework
to usher in foreign direct invest-
ment; ensure transparency and
hgIL corrupLIon; sLop reIyIng
solely on the extraction of natu-
ral resources to collect taxes;
boost public spending on health
and education; reinstate the
rule of law; monitor the priva-
tisation processes; and prevent
land grabbing.
All these goals are supported
by the people and their thirst
for change but does the gov-
ernment have the capacity to
deliver on its reform processes?
L dehnILeIy wIII noL be un eusy
task, and we might not see tan-
gible results in the short-term.
Thats where the government
really needs help from interna-
tional donors, NGOs and other
experts, especially the Asian
Development Bank, the regions
top donor and very eager to re-
turn to Myanmar after 23 years.
So what does Myanmar want
from ADB?
- Expertise to generate base-
line evidence and updated an-
alytical data on the countrys
economic, political and social
situation.
- Technical and policy advice
on legal framework reforms and
developments through public
and multistakeholder consulta-
tion processes.
- Capacity-building not only
Ior governmenL omcIuIs buL
also the whole workforce.
- Support for infrastructure
development that will be sus-
tainable for local communities,
especially large-scale projects.
I truly believe Myanmar needs
ADBs help, and ADB is willing
to give it. Lets hope that we can
march together out of our cur-
rent uncertainty toward a bright
future of inclusive, sustainable
development in this country.
A boy and a girI carry water from a Iake at BaIa Township on the outskirts of Yangon. Residents in BaIa township face with
water shortage during the dry season in ApriI and May every year. The Asian BeveIopment Bank is working with the Myanmar
government to improve the water suppIy infrastructure in Yangon and MandaIay.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
Myanmar Summary
Indias Northeast in BIMSTEC: Economic
Linkages With Myanmar and Bangladesh
Leonora Juergens
D
uring the third Summit
of the Bay of Bengal Ini-
tiative for Multi-Sectoral
Technical and Economic Co-
operation (BIMSTEC) in Nay
Pyi Taw in March 2014, Indian
Prime Minister Manmohan Sin-
gh urged for an early conclusion
of the BIMSTEC Free Trade
Agreement (FTA) in goods and
its extension to investment and
services.
Singh stressed the already
existing economic ties among
its seven member states, Bang-
ladesh, India, Myanmar, Sri
Lanka, Thailand, Bhutan and
Nepal. Yet, the agreement has
been postponed again until the
end of 2014.
Given the geostrategic loca-
tion of North Eastern region
(NER) in BIMSTEC, multiple
expositions about its economic
potential have been made in
terms of trade and investment.
Yet, the purported economic
remedies to the NER through
greater infrastructural connec-
tivity remain low. Instead, eco-
nomic development in the NER
with an annual growth rate in
GDP of 6.7 percent is lagging
behind the rest of India. Ethnic
insurgencies and territorial dis-
putes are often cited as a cause
for the NERs developmental
neglect. But, according to the
Ministry of Development of the
NER, the key reasons for its
stagnant economy lie in its in-
IrusLrucLuruI dehcILs, regIonuI
supply-chain constraints and
LIe ImposILIon oI urLIhcIuI Lrude
barriers onto its local border
trade especially with Myanmar
and Bangladesh. This results in
the limited access of local busi-
nesses to cross-border markets
which would buy back tangible
benehLs Lo LIe regIon.
Myanmar : Li nkages
Comprising 99 percent of
the border trade, Moreh-Tamu
(Manipur) is the main land
customs station (LCS) through
which trade between the NER
and Myanmars border states is
conducted. These share similar
economic and business struc-
tures with the NER, which are
largely agrarian and depend-
ent on the export of unpro-
cessed primary commodities.
Compared to the expansion
in bilateral trade to $1.92 mil-
lion in 2012-13, with imports
in food grains, vegetables and
fruits, the NER is facing a trade
dehcIL Lo Myunmur oI $1 mII-
lion. These statistics, however,
do noL IucLor In LIe sIgnIhcunL
informal trade, which sug-
gests a considerable demand in
goods beyond the positive list of
tradeable items under the 1995
Border Trade Agreement.
TIereIore, us u hrsL sLep Lo
a deeper industrial develop-
ment of the NER, these items
should be revisited under the
formulation of the FTA with the
objective to bring the informal
trade onto the formal channel.
Another primary reason for
the low level trade is the unfa-
vourable trading environment
uL MoreI. OmcIuI Lrude suers
due to a lack in quality infra-
structure (incomplete Kaladan
project, low information tech-
nology, etc) and the spiralling
oI excIunge ruLes oI LIe InuLed
Kyat. Thus, unless the NER is
not able to promote the Rupee
as a currency for the settlement
of the FTA, these remain a se-
rious hindrance to the NERs
exports, resulting in the loss of
economic revenue.
In order to promote greater
export to Myanmar, NER state
governments need to prioritise
the development of local in-
dustries for trade complemen-
tarities. This way, FTA could
further reduce the NERs trade
dehcIL wILI Myunmur by creuL-
ing a viable industrial base that
can service external demand.
In turn, this could also result in
the augmentation of a greater
domestic demand in the NERs
industries.
Bangladesh: Li nkages
The bilateral trade with Bang-
ladesh is dominated by a huge
trade surplus with India. In the
NER, the India-Bangladesh
border trade at Meghalaya, As-
sam and Tripura with $47 mil-
lion export rate over $16 million
import rate mirrors this over-
all picture, except for Tripura,
whose import rates of $11 mil-
IIon IndIcuLes u sIgnIhcunL Lrude
dehcIL.
A look at the local trade pat-
terns along the border reveals
that the FTA bears high poten-
tial for the economic develop-
ment of the NER and Bangla-
desh. Strong resource-industry
linkages are building blocks of
the present border trade and
indicate the economic comple-
mentarities between both re-
gions: the NER is rich in miner-
als, such as coal, limestone, iron
and steel, for which there is a
huge demand from the goods-
processing industry in Bangla-
desh.
It is also necessary that the
government of India and the
states of the NER promote capi-
tal investment and the transfer
of knowledge and technology to
support these industries.
Leonora Juergens is a Re-
search Intern at the Institute
oI Peuce und ConIcL SLudIes
(IPCS).

Given the geostrategic location of

North Eastern region (NER) in BIM-
STEC, multiple expositions about its
economic potential have been made
in terms of trade and investment. Yet, the
purported economic remedies to the NER
through greater infrastructural connectivity
remain low.
A worker drives a road roIIer during the construction of a road Iink between India and Myanmar at Wangzing viIIage, south of
the northeastern Indian city of ImphaI. A Hurry of high-IeveI ofciaI visits shows both countries are keen to get the chemistry
right, but at the border area, where smuggIing dominates trade, India appears iII prepared for Myanmar`s historic opening.
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Iabourers from Myanmar sit on a truck Ioaded with bricks as they cross the Indo-
Myanmar border bridge at the border town of Moreh, in the northeastern Indian
state of Manipur.
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_.,.:. .,_._.~:~ ~~,
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Bengal Initiative for Multi-Sectoral
Technical and Economic Cooperation
(BIMSTEC) ~._ .~.~.~ ~ . e
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Myanmar Summary
Contd. P 24...(Sule ShangriLa)
Yangons Traders Hotel Becomes Sule Shangri-La
Wai Linn Kyaw
H
ong Kong-based
hotelier Shangri-
La Hotels and Re-
sorts said it has rebrand-
ed its Traders Hotel in
Yangon to operate as Sule
Shangri-La following an
extensive renovation that
took two-and-a-half years
to complete.
The 484-room hotel,
which is on Sule Pagoda
road near the landmark
2,000-year-old namesake
pagoda, has been a major
hxLure In LIe cILy`s cen-
tral business district since
it opened in November
1996. Nearly two decades
on, the hotel continues to
be Yangons most popular
gathering and networking
spot for businesspeople
and hotel guests.
A key port in the Brit-
ish Empire, Yangon still
boasts vestiges of its co-
lonial past after nearly a
half-century of isolation.
Shangri-La said it is the
essence of this history and
Myanmars rich culture
that the newly branded
Sule Shangri-La captures
wILI u desIgn LIuL eorL-
lessly mixes elegance and
simplicity.
While the exterior of the
building is modern, the
lobby of Sule Shangri-La
evokes bygone colonial
days with white columns
CaIIery Bar.
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and a staircase that as-
cends to an open balcony.
The impression extends
to the adjacent double-
height lobby lounge where
a tiered crystal chandelier
highlights a wall mural
and panel with peacock
motifs the green pea-
fowl, called the U-Doung
in Burmese, is one of the
countrys national ani-
mals.
HoLeI sLu unIIorms wIII
now also celebrate Myan-
mars history, incorporat-
ing the traditional longyi,
a large sheet of cloth fold-
ed to form a cylindrical
shape, in styles specially
designed for the hotel, the
authorities said. Door-
men will wear a range of
seven dIerenL unIIorms,
each representing the
seven states of the coun-
try.
The public areas reveal
more cultural compo-
nents of the property with
tall ornate Burmese vases,
panes of woodcarving and
specially commissioned
art pieces by local artists
such as Ba Khine and Hla
Phone Aung, whose art-
works decorate the hotels
cafe, conference rooms
and suites. The hotel is a
showcase for local artists
and craftsmen, and their
works are creative depic-
tions of Burmese stories,
Shangri-La said.
For dining, the hotels
updated restaurants and
Iounges oer u vurIeLy
of choices. Summer Pal-
ace, Shangri-Las signa-
ture Chinese restaurant,
overlooks street activity
through large window al-
coves. Chinese paintings
und IubrIc hnIsIes uround
IIgIL hxLures IeuLure LIe
restaurant and its six
distinctive private din-
ing rooms specialising in
Cantonese dim sum and
authentic Chinese dishes.
The Gallery Bar was
modIhed Lo reecL u
public drinking house
from the past British
era, Shangri-La said.
Half-curtained glass win-
dows allow a peek of the
dark wood interior with
wrought iron and brass
details. Memorabilia and
photographs from the
eurIy 18oos hII LIe wuIIs
and the comfort menu in-
cludes homemade shep-
herds pie, steaks, light
bites and crisp cold beers.
Its balcony has an encom-
passing view of the Lobby
Lounge which constantly
bustles with patrons.
The hotels renovation
also included the three
other venues Cafe Sule
Ior InLernuLIonuI uvours
and Asian favourites; the
Peacock Lounge, an in-
formal meeting ground
for catch-ups between
friends or executives, and
the Gourmet Shop serv-
ing freshly baked goods,
snacks and beverages. All
ouLIeLs ure LIe hrsL In My-
anmar to be awarded the
Hazard Analysis and Crit-
ical Control Point System
(HACCP) cerLIhcuLIon Ior
world class standards of
food management and
hygiene.
For recreational pur-
suits the Health Club,
which overlooks the out-
door pooI, oers un ex-
panded space of over 850
squure-meLres oI hLness
equipment, sauna, steam
and massage rooms. The
hotels meeting spaces
regular hosts of del-
egations and dignitaries
span three levels at Sule
Shangri-La.
The hotels 484 remod-
elled guestrooms present
large picture windows
that frame the city, river
or Shwedagon Pagoda.
TIere`s uIso uL-screen
televisions, complimen-
Lury wIh, zq-Iour room
servIce, hne IInens und
marble bathrooms.
On LIe Lop oor oI LIe
hotel are three refash-
ioned suites bordered by
views of Yangon city or
Yangon River. Incorpo-
rating artefacts to dis-
play Myanmars much-
admired handicraft, they
are swathed in plush
fabrics and trimmed with
dark wood. The suites,
including the citys larg-
est Presidential suite,
measure between 66 and
189 square-metres and
are designed for relaxing
and working in separate
ureus. BuLIrooms ure hL-
ted with a bathtub, rain-
forest shower and quality
amenities.
Travellers in search of
an exclusive retreat will
enjoy the new Horizon
Club Lounge. The execu-
tive lounge was relocated
Lo IeveI z1 Lo oer un un-
obstructed view of Shwed-
agon Pagoda and enlarged
to over 490 square meters
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
24
From page z...(Sule ShangriLa)
PROPERTY & REAL ESTATE
Real Estate Show to Highlight Investment Opportunities
Pann Nu
S
ingapore-based Sphere
Conferences will organise
a real estate show at the
end of this month in Yangon.
The Myanmar Real Estate
Show 2014 will take place at
Traders Hotel Yangon from
26 to 28 May focusing on the
trends and investment opportu-
nities in Myanmars burgeoning
real estate sector, the organiser
said.
Industry leaders and experts
including Myanmars top
property conglomerate Shwe
Taung Groups director U Han
Thein Lwin, managing partner
of Leopard Capital Kenneth
Stevens and chairman of Silk
Road Finance Alisher Ali will
explore areas of development
and investment potential with
a series of best practice show-
cases, Sphere Conferences said.
The event will address Myan-
mars real estate developmental
challenges and opportunities
relevant at the cur-
rent stage of the
countrys urbanisa-
tion, the company
added.
Sphere Confer-
ences will also
arrange Myanmar Urban De-
velopment Conference 2014 si-
multaneously at the same venue
from May 26 to 28.
The 2nd edition of the city
planning and infrastructure de-
velopment conference, which
aims to bring in a panel of gov-
ernment and industry leaders
and experts, will address the
scope and ambitions towards
urbanising the new Myanmar,
the events organiser said.
Myanmar Summary
Myanmar Summary
Asiu Pucic Hotel
Pipeline Growing
Phyu Thit Lwin
A
sias hotel development
industry has seen a sig-
nIhcunL boom recenLIy.
According to STRs Global
Construction Pipeline Report
Ior MurcI zo1q, LIe AsIu PucIhc
hotel market now has under de-
velopment a pipeline of 2,312
new hotels totalling 513,443
rooms.
Among the countries in the re-
gion, Bangladesh reported the
largest expected supply growth
(261.1 percent) if all 4,170
rooms under contract open.
Six other countries each re-
ported more than 30 percent
expected room growth: Mon-
golia (77.4 percent with 975
rooms); Myanmar (67.5 percent
with 4,109 rooms); Sri Lanka
(51 percent with 5,204 rooms);
Bhutan (46.7 percent with 78
rooms); Indonesia (35.7 per-
cent with 53,100 rooms); and
the Philippines (+30.7 percent
with 13,078 rooms).
The under contract data in-
cludes projects under construc-
LIon, hnuI pIunnIng und pIun-
ning stages but does not include
projecLs In LIe unconhrmed
stage.
Myanmar Summary
Singapore Company to Invest in
Hotel Project in Yangon
Kyaw Min
S
ingapore-based SCCP
Lakeside Company will
invest in a three-star hotel
project in Yangon, local media
reported.
SCCP has been granted by
Myanmar Investment Commis-
sion (MIC) for the establish-
ment of the hotel project in Hla-
ing Township of Yangon in line
with the Foreign Investment
Law, in April.
The MIC also gave permis-
sion for a 14-story hotel project,
which will run under the Myan-
mar Citizen Investment Law.
There are a total of 26 foreign-
invested hotels across the coun-
try, including Yangon and Man-
dalay regions.
S
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BaII room.
]akarta city skyIine. Indonesia`s expected hoteI room suppIy growth in 2U14 is
35.7 percent with 53,1UU rooms, STR`s CIobaI Construction PipeIine report said.
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Myanmar Real Estate Show
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to provide additional seating
and two private meeting rooms.
As part of the Horizon Club
benehLs, guesLs wIII enjoy per-
sonal check-in and late check-
out at the lounge, complimenta-
ry beverages and refreshments
all day, a dedicated concierge
und wIh uccess. OLIer guesL
privileges that come with Hori-
zon CIub oor uccommoduLIon,
on levels 18 to 22 of the hotel,
include complimentary break-
fast, in-room wine and snacks
upon arrival, suit pressing and
daily fruits.
Its exciting to see the luxury
enhancements of the hotel and
to introduce Shangri-Las sig-
nature touches in such a desir-
able destination, said Philip
Couvaras, area general manag-
er of Sule Shangri-La, Yangon.
We look forward to continu-
ously providing our guests with
new and personal experiences,
and to help immerse visitors
into the local culture.
To mark Sule Shangri-La,
Yangons rebranding, the hotel
has introduced a Celebration
Package priced from $215 per
night, subject to tax and ser-
vice charges, until 31 July. A
minimum two nights stay in a
Deluxe Room includes one way
airport transfer (pick up or drop
o) und $qo IoLeI credIL wIIcI
may be used for hotel food and
beverage, laundry, massage ser-
vices and at the beauty centre.
Shangri-La Hotels and Re-
sorts currently owns or man-
ages more than 80 hotels under
the Shangri-La brand with a
room inventory of over 34,000.
The group has a substantial
development pipeline with up-
coming projects in China, In-
dia, Mongolia, Myanmar, Phil-
ippines, Qatar, Sri Lanka and
the United Kingdom.
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
Myanmar Summary
Myanmar Summary
Thai Auto Output, Sales Plunge Sharply
Industry group cites end of government subsidy, rise in household debt
Wai Linn Kyaw
T
hailands auto production
and domestic auto sales
continued to fall hard in
March following the end of the
governmenL subsIdy Ior hrsL-
time buyers.
March production was down
29 percent from a year earlier,
to 181,334 vehicles, the Federa-
tion of Thai Industries Auto-
motive Industry Club reported.
The decline accelerated from
Februarys 24 percent pace,
though production in March
was higher than in February by
4.5 percent.
In addition to the end of the
governments incentives for
hrsL-LIme cur buyers, LIe de-
crease in March was also due to
disappearing purchasing power
as the political turmoil and
sluggish economic conditions
continued to weigh heavily on
consumers minds, said club
spokesman Surapong Paisitpa-
tanapong.
Consumer spending power
has been eroded by high house-
hold debt, which was the equiv-
alent of more than 80 percent
of gross domestic product at
the end of 2013. The delay in
government payment to farm-
ers participating in the multi-
billion-dollar rice subsidy pro-
gram has also contributed to
the decline in spending.
Domestic auto sales in March
were down 47 percent from a
year earlier, according to the
auto clubs report but up 17
percent from February, a boost
attributed to the promotional
power of the Bangkok Interna-
tional Motor Show, which start-
ed at the end of March.
In 2013, domestic auto sales
fell 7.7 percent to 1.33 million
cars and are forecast to drop by
13.6 percent this year, accord-
ing to Toyota Motor Thai Unit.
In addition, Thailands auto
exports hit a six-month high
in March, with 113,313 vehicles
shipped to overseas markets, up
8.8 percent from a year earlier
and up 17 percent from Febru-
ary as auto makers decided to
increase production for export.
Thailand is a regional vehicle
production and export base for
the worlds top car manufactur-
ers.
uimler Prots ooble As Mercedes Recovery Continoes
Mercedes sales up 14pc, margins more than double
Edward Taylor
D
uImIer`s hrsL-quurLer
operuLIng prohL more
than doubled as surging
sales of new cars and improving
margins in its Mercedes-Benz
luxury autos division extended
its recent recovery.
Having dropped to third place
in luxury car sales rankings in
2011 behind BMW and Volk-
swagens Audi, Mercedes-Benz
closed the gap in 2013 thanks
to redesigned vehicles and new
compact cars such as the A-
Class sedan.
The group said last week sales
of Mercedes-Benz cars rose 14
percenL In LIe hrsL quurLer, drIv-
en by demand from China and
the United States, as it prepares
to roll out a fresh version of its
new C-Class model, currently
the best selling Mercedes-Benz.
Daimlers rebirth and rehabili-
LuLIon conLInues wILI LIese hrsL-
quarter results. This is supposed
to be Mercs weakest quarter of
2014 with the changeover of the
C-Class, so it bodes well for the
rest of the year, said Bernstein
analyst Max Warburton in a note
to clients.
Daimler said group earnings
before interest and tax (EBIT)
from ongoing business rose to
2.07 billion ($2.9 billion) in
the three months ended March,
up from 949 million in the
year-earlier period, and above
the 1.906 billion forecast in a
Reuters poll.
Including buses and trucks,
total sales rose 13 percent.
ProhLubIIILy uL Mercedes-Benz
has improved as a range of new
vehicles including the A- and B-
Class compact cars as well as its
ugsIIp S-CIuss IIL sIowrooms,
more than doubling the divi-
sions return on sales from on-
going operations to 7 percent in
the quarter, up from 3.3 percent
in the year-earlier quarter.
Daimler said it aimed to in-
crease that to 10 percent in the
medium term. Reuters
Ford`s state-of-the-art car pIant in Rayong province, ThaiIand.
F
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r
d
The new Mercedes-Benz 2U15 C-CIass is dispIayed during a private preview for media at the Westin Book CadiIIac HoteI in
Betroit, Michigan.
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May 8-14, 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
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
27
Myanmar Summary
Myanmar Summary
Facebook Lets Users Limit Data Shared With Apps
Alexei Oreskovic
F
acebook introduced new
features last week that let
users limit how much per-
sonal information they share
with third-party mobile apps,
a move meant to quell privacy
concerns as the social network
seeks to become a top entry port
to the internet.
In recent years, Facebook Inc
has successfully encouraged a
growing number of third-party
app makers to allow users to log
in with their Facebook identity
rather than, say, by entering an
email address or creating a ded-
icated account.
TIe resuIL Ius been un Inux
of valuable data for the worlds
No. 1 social network, but con-
cerns have also mounted about
third-party developers gaining
access to private information.
Chief Executive Mark Zuck-
erberg said at Facebooks de-
veloper conference in San
Francisco that a new version of
Facebooks log-in tool, called
log in anonymously, would let
users control what information
they allow third-party apps to
see. He told developers the tool
would let users feel more com-
fortable about logging into apps
using Facebook.
By giving people more power
and control, theyre going to
trust all the apps that we build
more, and over time use them
more. And thats positive for
everyone, said Zuckerberg.
The revamped log-in screen
will let users select which per-
sonal information stored on the
social network, such as an email
address, birthday or items that
they have liked on Facebook,
can be accessed by any particu-
lar app.
The users names and gender
will remain visible to the app.
The social network also rolled
out a new service to distribute
ads across a network of mobile
applications, opening the door
to a new source of revenue.
The service, which has been
in the works on for some time,
allows mobile-app makers to
insert various ads within their
software, with Facebook shar-
ing advertising dollars with the
developers.
TIIs Is reuIIy LIe hrsL LIme
that were going to help you
monetise in a serious way on
mobile, Zuckerberg said.
Facebook faces tough compe-
tition in the active mobile ad
network market. Google Incs
AdMob service already allows
advertisers to distribute ads to
mobile apps, while Twitter Inc
said last week that its MoPub ad
network can reach 1 billion mo-
bile users.
Twitters MoPub, which serves
as an advertising management
tool for app publishers, will al-
low mobile apps to feature ads
for the Facebook audience as
well as other networks, the two
companies said.
Facebook began testing a mo-
bile ad network with a limited
number of advertisers and mo-
bile app publishers in January.
It plans to expand the number
of app makers that can use the
service, although it did not pro-
vide a time frame for when the
system will become broadly
available.
The new mobile ad system,
dubbed the Facebook Audi-
ence Network, will leverage
Facebooks more than 1 million
advertisers and its own ability
to target users based on their
traits.
Facebook generates the bulk
of its revenue from ads that ap-
pear on its own web pages and
within its own mobile app. By
distributing ads across a con-
stellation of independent mo-
bIIe upps, ucebook eecLIveIy
expands its advertising space,
opening the door to more rev-
enue.
To get access to the extra ad
space, ad networks typically
share the revenue with their
partners. Facebook will share
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SAIL Produces Myanmars First
Telecom TVC with MPT and Samsung
Phyu Thit Lwin
L
ocuI udverLIsIng hrm SA
Group of Companies an-
nounced that it has pro-
duced and aired Myanmars
hrsL LeIecom TV commercIuI
(TVC).
This will kickstart a spending
spree that will dominate the
advertising industry in 2014,
projected to be valued at $212.8
million, according to research
hrm MMRD.
The TVC for Myanmar Post
and Telecommunications
(MPT) featured a traditional
theme for the companys sea-
sonal Thingyan 20 percent bo-
nus promotion, and is also the
compuny`s hrsL LIme uIrIng u TV
commercial.
In October 2013, SAIL Groups
chairman John Handley cre-
ated a separate company for
TVC production, Big Mountain
Productions (BMP), which has
since produced commercials for
Samsung, CB Bank and MPT.
With the introduction of a
new broadcasting law, the use
of local talent and a local direc-
tor now will enable SAIL to get
a discount while airing TVCs in
Myanmar, the company said.
John Handley, a US citizen
who has been working in and
out of Myanmar for 13 years,
established BMP by importing
foreign equipment and training
an entirely Myanmar crew to
operate them, SAIL said.
In February 2014, SAIL pro-
duced a TVC for Samsungs
Tab3 Lite, featuring Ei Chaw
Po and Thanadar Bo. This TVC
was then aired in Cambodia
and Vietnam for Samsung, the
hrsL LIme u IocuIIy produced
Myanmar commercial has been
shown abroad.
SAIL Group of Compaies ._
... ...:.~ . e .q.. . , .
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._~: _:~ .. :, ~ ~ . ~ . . ._ .
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_e. _. . ~. , _._ ._~: _:. . , .~, ..:
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A woman hoIds up a SIM card, which she won in a ]une Iottery, in Yangon. State-
run Myanmar Post and TeIecommunications` (MPT) rst TV commerciaI has kick-
started a spending spree that wiII dominate the advertising industry in 2U14.
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~.,_e ..:e~.. ...:.~:.
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most of the ad revenue with
apps makers, as is standard in
the industry. Reuters
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
28
IT & TELECOM
Myanmar Summary
Myanmar Summary
Qoulcomm Spins OH Locution Awureness Technology
Noel Randewich
Q
ualcomm Inc is spinning
o ILs IocuLIon uwure-
ness technology, which
is compatible with Apple Incs
iBeacon version, to a group
of investors including music,
sports and arena conglomerate
AEG.
The chipmaker said last week
it sold the business as a newly
formed entity called Gimbal
Inc. One investor is the i-Hatch
LBS Fund, which includes stra-
tegic investors Zebra Tech-
nologies Corporation and AEG.
Qualcomm will remain a mi-
nority investor.
A Qualcomm spokesperson
decIIned Lo dIscIose hnuncIuI
details.
The technology allows retail-
ers and sports venues to track
LIe specIhc IocuLIon oI cusLom-
ers on their premises and send
context-aware messages, like
specIuI oers Ior producLs und
services, to their smartphones.
It is part of a growing trend in
which smartphones and tablets
ure used Lo oer cusLomIsed
recommendations to consum-
ers depending on where they
are and what they are doing.
The advanced Bluetooth tech-
nology behind Gimbal, which
can be more accurate than
GPS and works indoors, meets
standards for iBeacon technol-
ogy used in Apple stores.
In March, San Diego, Cali-
fornia-based Qualcomm said
it had been chosen to supply
iBeacon-compatible equipment
to be used in 20 Major League
Baseball stadiums. Reuters
LS Resists Pressore to Give Indiu Worst OHender Ruting in IP Review
Krista Hughes
T
he United States has re-
sisted lobbying by US
businesses to take tough-
er trade action against India for
its intellectual property poli-
cies, deciding against risking
ties with a likely new govern-
ment in New Delhi.
The US Trade Representative
avoided labelling India with the
worsL oender Lug In ILs unnuuI
scorecard on protecting US pat-
ents, copyrights and other intel-
lectual property (IP) rights.
Instead, the United States
kept India, which is in the
midst of elections, on its Prior-
ity Watch List along with China
and eight other countries. It
would start a special review of
India in the fall and redouble
eorLs Lo uddress concerns wILI
the new government, the US
Trade Representative said.
A USTR omcIuI suId LIe pur-
pose of the review was to assess
the new governments level of
engagement and the USTR was
not contemplating a change in
Indias status in 2014. A new
process would start in 2015, he
added, and stakeholders could
give their input.
Labelling India as a Prior-
ity Foreign Country just as
a new government comes to
power would have meant that
reIuLIons wouId sLurL o on LIe
wrong foot, but the potential
penalty which would be levied
against India will now hang
over bilateral relations, said
Center for Strategic and Inter-
national Studies adjunct fellow
Persis Khambatta.
Some were disappointed that
the USTR failed to name India
as a priority foreign country
a label that can eventually lead
to trade sanctions or the loss of
Lrude benehLs - uILIougI oLIers
sLressed IL wus noL o LIe Iook
yet.
Orrin Hatch, the top Repub-
lican on the Senate Finance
Committee and one of four top
lawmakers who ordered an in-
vestigation into Indian trade
policies last year, said the coun-
try was a textbook example of
poor practices regarding intel-
lectual property.
A stronger response is re-
quired to dissuade other coun-
tries from adopting similar
policies, he said in a statement.
Even so, the US Chamber of
Commerce and the Pharmaceu-
tical Research and Manufactur-
ers Of America (PhRMA), which
had both wanted India named
us u Lop oender, weIcomed LIe
special review.
Such a review provides a
needed avenue for constructive
engagement with the incom-
ing Indian government on how
to resolve the deteriorating IP
environment in India, PhRMA
President John Castellani said.
Intellectual property lawyer
Steven Tepp, the president of
consultancy Sentinel World-
wide, said the planned spe-
cial review allowed the USTR
to change Indias ranking and
should tell the Indian govern-
ment the issue needed urgent
attention.
The USTR said Indias limits
on the approval of pharmaceu-
tical patents, a convoluted pro-
cess for patent challenges and
the fact that the government
was considering opening a se-
ries of patented drugs to generic
manufacturers created serious
challenges for some innova-
tors.
The spread of pirated goods
in India, a stalwart of the US
IP black list, was also worrying.
The report noted estimates that
counterfeiting and smuggling
lost copyright holders almost
$12 billion in 2012. Reuters
Shops in Nehru Place market
in Indias capital New Delhi
primarily deal in computer pe-
ripherals, but it has also been
cIussIhed us one oI LIe mosL
notorious markets for piracy in
the world.
Pirated versions of copied
software programs of compa-
nies such as Adobe and Oracle
and various operating systems
of Microsoft are on sale. The
compact disc of Windows 7 op-
erating system costs 100 rupees
($1.66), compared with about
$100 for an original copy.
Alok, who sells pirated games
in the market, said he does not
know about the losses incurred
by companies because of piracy.
I only care about my daily wage
of 130 rupees, he said. Reuters
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A worker sorts out a portion of about 35,UUU conscated pirated Im BVBs as ofciaIs prepare to destroy them in the south-
ern Indian city of Chennai.
B
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Qualcomm Inc ~.,_e Apple
Inc - iBeacon . .~e~._
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
Nokia Returns $3.1b to Shareholders, Suri Becomes CEO
Sakari Suoninen &
Jussi Rosendahl
F
innish telecommunica-
tion gear maker Nokia
last week reported higher-
than-expected quarterly earn-
ings and promoted Rajeev Suri,
the head of its biggest division,
to lead the company following
the sale of its once-dominant
phone business.
The company also announced
plans to return $3.1 billion to
shareholders via buybacks and
extra dividends, a move seen by
some analysts as an attempt to
retain investors as it refocuses
is business.
Suri, a 46-year-old Indian na-
tional, was widely expected to
become the CEO as he helped
Nokias networks business, for-
merIy cuIIed NSN, Lurn prohL-
able with cost-cuts and divest-
ments.
CosL-cuLLIng und prohLubIe
software deals helped the net-
works business report a core
operuLIng prohL murgIn oI q.
percenL In LIe hrsL-quurLer, weII
ahead of the 5.7 percent aver-
age forecast by analysts polled
by Reuters. The margin is also
expected to remain at the high-
er end of a 5-10 percent target
for this year, Nokia added in its
earnings statement.
The unit was one of three that
remained after Nokia sold its
mobile phone business to Mi-
crosoft for about 5.6 billion in
a deal that closed on April 25.
Nokia said it would focus on
growing the networks unit, as
well as its navigation and pat-
ents business, but did not give
uny specIhc deLuIIs.
The general strategy is not
very concrete, sounds like they
have just come up with a mega-
trend around their three busi-
ness areas. Id expect the units
to be rather independent in the
future, said Mikael Rautanen,
analyst with equity researchers
Inderes.
The networks business last
year accounted for about 90
percent of the groups sales
and Nokia has vowed to make a
more aggressive push this year
to increase its global market
share.
Analysts, however, say it may
face challenges as higher re-
search and development costs
give bigger, deep-pocketed ri-
vals such as industry leader
Ericsson and Chinese telecoms
hrm HuuweI, un udvunLuge.
Suri, in a video posted on the
companys website, said there
was plenty of scope for expan-
sion. I have been with Nokia for
almost 20 years, and the oppor-
tunities ahead of us are as great
as I have ever seen, he said.
Suri, who has been with Nokia
since 1995, successfully turned
around the loss-making net-
works unit in 2012.
Rajeev is the right person
to lead the company forward,
Nokia Chairman Risto Siilas-
maa said in a statement. He
has a proven ability to create
strategic clarity, drive innova-
tion and growth, ensure disci-
plined execution, and deliver
results. Reuters
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Myanmar Summary
Paypal Burnishes Brand Image As Mobile Use Surges
Deepa Seetharaman
T
he online payment com-
pany PayPal is getting
a shiny new look and its
hrsL-ever gIobuI murkeLIng pusI
as parent eBay Inc tries to wrest
attention away from the grow-
ing number of rivals piling into
the mobile payments market.
The brand overhaul unveiled
last week includes a more vi-
brant, simple logo designed to
suit mobile phones and wear-
able devices like wristbands
und PuyPuI`s hrsL-ever LeIevI-
sion ads in the U.S. market. The
campaign will last throughout
the summer and into fall 2014.
The move comes as PayPal,
the dominant online payment
processor, shifts its focus to-
ward mobile phones and the
fast-growing market to enable
consumers to pay for physical
goods and services with their
smartphones.
If you look at us visually on-
line, we look very similar to
hnuncIuI servIce compunIes,
said Christina Smedley, vice
president of global brand and
communications at PayPal.
Our brands and the ways con-
sumers are going to experience
them, the way people are going
to touch us, is going to change
hugely in coming years, she said.
The company declined to
specify the total cost of the
marketing campaign, but said
it was the largest ever planned
for PayPal, which accounts for
a large chunk of eBays over-
all stock market value and its
growth outpaces the rest of the
company.
The US mobile payment mar-
ket will reach $90 billion by
2017, up from $12.8 billion in
2012, according to Forrester Re-
seurcI. ReseurcI hrm GurLner
expects the global market will
see a more than threefold rise
by 2017 to $721 billion.
That potential has attracted
the likes of Amazon.com Inc,
Google Inc and Square Inc. Be-
tween 3 percent and 7 percent
of consumers worldwide use in-
store mobile payments, but up
to 27 percent are willing to try,
according to Bain & Company.
With 143 million active users
at the end of 2013, PayPal is the
dominant online payment pro-
vider, but it is not used widely
for in-store payments in the
United States, Bain said.
Our research showed that
people needed to be reminded
oI some oI LIe core benehLs LIuL
we have and this felt like a way
we could bring it together, Sm-
edley said.
TIIs Is LIe hrsL mukeover Ior
PayPal since 2007. The logo
wus deveIoped by LIe hrm Ied
by designer Yves Behar, who
Is uIso cIIeI creuLIve omcer Ior
Jawbone, a maker of headsets
und u hLness-Lrucker producL.
TIe murkeLIng eorLs come u
few weeks after activist investor
CurI cuIn dropped IIs eorLs
Lo Iorce eBuy Lo IIve o PuyPuI,
eBays most attractive and fast-
est-growing unit. Reuters
~ ~:,~ . ...... . . , ._e. ._
PayPal ~:. ,.-..~.~ eBay
Inc ~.,_e e_.._..:..:._
. .. ...... ...~ ~ . ~ .q:~
q, ... .~_~ . ~.,_e ~. ..
. ...~ ~ . .~: ._ _e. ._~: .
.q._.
Paypal ~.,_e ..e,.. ,:q
~ . ~~ . . ._ ~ q e:.:.~~ ~
, .q .. : . ~ . ~ :._. . ~..q ~,
.~ Paypal - .......:
~-._~:_:~:. ~._...__e.
._~: . e. ~.~ ~ ~ .e: ._.:
_~:.. ._ .~. .|. . q :.. ~:. .. q:.
. ~~, ..:...~ ....:
.:..__e.._.
Paypal -~. .|. . ..: .~ ._
, .- .~_ .~ ~:. . .e , ..:.
~. .q.,_.._e._.. ~..:..:._
...~ ~ ~.,_e . .. . .:.~:. , .~
- ..~e,..:..~.. ...~,
.._..:.~~~.......q, ..
..:....:..__e.._.
~..q~,.- .........
...~~._ ~~ ...~ ~..q
~,..'.:~... .eq.._.
Rajeev Suri, the new CEO of Nokia.
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Visitors walk past an Ebay and PayPal banner at the Mobile World Congress in
Barcelona.
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May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
Customers check out products at the fair. Lock & Lock
Lock & Lock Fair
Lock & Locks showroom. Lock & Lock
Customers at the Keep your FUN tight with Lock & Lock fair.
Lock & Lock
Te Launch of Bangkok
Airways' Brand
Ambassador
Model Moe Set Wine, brand ambassador
of Bangkok Airways. Bangkok Airways
Moe Set Wine. Bangkok Airways
Rebranding Ceremory of Traders Hotel to Sule Shangri-La, Yangon
Htar Htet Htet and the models performed in rebranding of Sule Shangri-La
hotel. Wai Linn Kyaw
Phillip Couvaras, area manager of
Sule Shangri-La hotel.Wai Linn Kyaw
Yinn Mar Nyo, director of sales
and marketing & Agnes Pacis.
Wai Linn Kyaw
Hotel staf pay respect to monks. Wai Linn Kyaw
Hotel staf pose for a photo. Wai Linn Kyaw
Hotel staf pay respect to monks. Wai Linn Kyaw
A monk sprinkles holy water in hotel compound. Wai Linn Kyaw
A monk sprinkles holy water to fag pole. Wai Linn Kyaw
A monk sprinkles holy water on the signboard. Wai Linn Kyaw
Models pose for a photo. Bangkok Airways Models pose for a photo. Bangkok Airways
International Conference of Maritime
Challenges to ASEAN &
Prospects of SCS Dispute Resolution
AB Mahapatra, director, CASS-India. Kyaw Min
U Taung Tun, member, board of directors, Myanmar Development
Resource Institute (R). Kyaw Min
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
31
May 8-14, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
Myanmar Cools Talk of
2019 Asian Games Bid
Aye Myat
M
yanmar appears
unlikely to replace
Vietnam as host of
the 2019 Asian Games, despite
having ambitions of becoming
a major player in the conti-
nents sporting landscape.
Myanmars senior sports of-
hcIuIs suId wIIIe LIe counLry,
which staged last Decembers
SEA Games, is well-equipped
to take over the hosting of the
Asiad, numerous challenges re-
main in organising the worlds
second largest multi-sports
event after the Olympics, ac-
cording to a report in Today
online.
If we have a choice the
authority will agree (to host the
Games), and our athletes are
ready, Deputy Sports Minis-
ter Zaw Winn was quoted as
saying.
But there needs to be serious
consideration for such a big
event as we have many things
happening this year after tak-
ing over the ASEAN chairman-
ship.
Khin Maung Lwin, joint sec-
retary general of the Myanmar
Olympic Committee said while
Myanmar has enough facili-
ties and infrastructure, it has
shortcomings in expertise and
manpower to organise such
a big event. The SEA Games
has 11 countries, but the Asian
Games has 45.
Earlier this month, the
Vietnamese government an-
nounced Hanoi was withdraw-
ing as host of the 2019 Asiad,
citing the economic recession,
budgetary constraints and
concerns that the countrys
reputation could be damaged if
LIe evenL wus u op Ior puIIIng
the plug.
The Olympic Council of Asia
(OCA) is expected to decide
on the new host city on Sept
20 during the Asian Games
in Incheon. The United Arab
Emirates, China and Japan
have been cited as possible
hosts, while the Taiwanese
city of Kaohsiung will spend a
month evaluating the possibil-
ity of organising the Games.
Surabaya, which lost the
2019 vote to Hanoi two years
ago, is another favourite, but
Indonesia Olympic Commit-
tee Chairwoman Rita Subowo
has questioned if the govern-
ment will have enough time to
prepare.
The Asian Games were to
have cost Vietnam about
$300 million, while this years
Games (Sept 19-Oct 4) will
reportedly cost South Korea
$1.62 billion.
The costs have proved a de-
terrent for many, with Malaysia
willing to consider stepping in
only if OCA helped foot the bill,
while Thailand is not keen.
Myanmar Football Team Under Training
for AFC Challenge Cup 2014
M
yanmar football team
is under training for
the Asian Football
Confederation Challenge Cup
2014, the countrys Football
Federation said last week.
TIe LruInIng sessIon, LIe hrsL
under Myanmar head coach
Rodojko Avramovic, involved
National Hockey
Leugoe o1q Kicks OH
Kyaw Min
M
yanmar National
Hockey League
zo1q kIcked o uL
Theinbyu turf hockey pitch in
Yangon on May 3, according to
Myanmar Hockey Federation.
Organized by the Ministry
of Sports and the Myanmar
Hockey Federation, a total of
eleven hockey clubs are taking
part in the league.
In the meantime, Myanmar
hockey team has resumed
its training, which had been
28 players and began on
Wednesday last week.
The Serbian coach was ap-
pointed as Myanmar national
teams coach in February this
year.
The team will play friendly
matches in Thailand ahead of
the AFC challenge Cup.
AIso, LIe om cIuI druw Ior LIe
AFC U-19 Championship has
taken place in Myanmar.
According to the draw, Myan-
mar, Iran, Thailand and Yemen
will be in Group (A), while
Uzbekistan, Australia, United
Arab Emirates and Indonesia
in Group (B), South Korea,
Japan China and Vietnam in
Group (C) and Iraq, North Ko-
rea, Qatar and Oman in Group
(D).
The tournament is scheduled
to take place in Nay Pyi Taw
and Yangon from October 9-23.
suspended for months after the
end of the 27
th
Southeast Asian
(SEA) Games hosted by Myan-
mar in December last year.
As purL oI LIe eorLs Lo pre-
pare for the 28th SEA Games in
Singapore next year, the mens
team with 23 players and the
womens team with 13 have be-
gun intensive training starting
from April 21.
The mens team will continue
to work with the Pakistani
coach who served as their
coach during the previous SEA
Games.
Golf-European Tour Subsidises Late
Switch, Asia Not As Generous
Patrick Johnston
T
he European Tour picked
up any costs its members
incurred after the late
decision to move last weeks
tournament from South Korea
to Singapore but Asian Tour
golfers at the co-sanctioned
evenL Iuve noL been oered
similar reimbursements.
Earlier in April, the two
circuits announced that The
Championship was being re-
located due to staging issues
after its original sponsor with-
drew, meunIng IgIL bookIngs
required changing and hotels
switched to compete at Laguna
National.
The European Tour sent a
directive to its members on
how to reclaim expenses for the
extra costs provoked follow-
ing the unforeseen change of
circumstances.
The Asian Tour, however,
were not able to match the
oer Lo LIeIr ;z pIuyers In LIe
16-mun heId Ior IusL week`s
$1.5-million event, formally
known as the Ballentines
Championship, where prize
money is down from last years
$2.8 million purse.
Asian Tour chairman Kyi
Hla Han was not available for
comment after playing in the
pro am, while the Tours CEO
Mike Kerr, away on business in
Abu Dhabi, also opted against
discussing the issue.
The Asian Tours order of
merit leader Anirban Lahiri
suId cIungIng IgILs und book-
ings were part and parcel of
being a golfer and he laid no
blame at the door of the organ-
isers but the Indian did praise
the European Tours policy.
Everyone is trying to be eco-
nomical by booking in time but
these things can happen if you
pull out of events or miss cuts,
you change tickets, the Indian
told Reuters.
It is something that is the
prerogative of the Tour, if the
European Tour has taken that
decision its really good on the
Tour to support their players
and hopefully something like
this can be learnt by the other
tours.
Schedule delay
Late scheduling switches are
par for the course for Asian
Tour members with the 2014
Myanmar Open disappearing
from the list of events without
notice, while the return of next
months Philippine Open was
only announced last week.
The Asian Tour members are
still waiting for the second half
of their 2014 schedule to be
announced with the Chiangmai
Golf Classic held in Thailand in
JuIy LIeIr IusL conhrmed evenL
of the year to date.
Singapores Mardam Marmat
said the switch of venues for
this weeks event had led to
mixed feelings.
Iud uIreudy goL my IgILs
and done my visa, the world
number 548, who has won
$4,025 from four events this
year, told reporters.
It is good and bad for me...
bad I lose some money on the
air ticket and good I now play
in my home town.
European Tour member Brett
Rumford, winner of the event
last year in Korea, said the late
switch had not caused him too
much trouble.
I didnt book any accommo-
duLIon or IgILs Lo Koreu so
got lucky on that, the Austral-
ian told reporters after reveal-
ing he nearly missed China
Open because he had run out
of pages in his passport and
required a new one.
The Tour is always subsidis-
ing any money lost so we have
been looked after.
Austrian Bernd Wiesberger,
who won the tournament in
2012, said he was grateful to
organisers for managing to put
an event on this week after the
scIeduIIng dIm cuILIes.
We are fortunate to have
the tournament from what Ive
heard. We lost the tournament
at Blackstone, which was a
shame for me as Id played well
there for two years, he said.
But it is great to be here in
Singapore and we have to pay a
great deal of credit to everyone
for setting up a tournament
like this in such a short period
of time.
Pann Nu