July 17-23, 2014

Myanmar Business Today

mmbiztoday.com
mmbiztoday.com July 17-23, 2014| Vol 2, Issue 28 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Inside MBT
Myanmar Rosewood Stolen to Feed Chi-
nu`s EIILe urnILure Cruze P-8
How Does One GeL O TIe US SuncLIon
List? P-21
Enforcement Teams to Target
Growing Tax Evasion in Myanmar
T
he Internal Rev-
enue Department
(IRD) will start col-
lecting data on unpaid
government taxes to tack-
le Myanmars growing tax
evasion problem after up
to 400 industrial compa-
nies were reported avoid-
Ing IocuI LurIs.
Mobile enforcement
teams will monitor indus-
LrIuI zones IncIudIng LIe
South Okkalapa, Mingala-
don, Thaketa, Shwe Pyi
Thar, Hlaing Thayar and
South Dagon townships,
according to the IRD.
Internal Revenue De-
partment Director U
Aung Kyaw Tint said gov-
ernment action to target
the countrys tax evasion
In ILs IndusLrIuI zones wIII
follow the authorities in-
spection of business in
these market areas.
As there are many
zones, we wIII coIIecL duLu
hrsL und LIen noLIIy LIe
businesses to pay taxes,
U Aung Kyaw Tint told
Myanmar Business To-
day.
The taxation board
plans to hold negotiations
Htun Htun Minn
with industrial commit-
tees, township city de-
velopment councils and
manufacturers on tax-
evading businesses oper-
ating in industrial areas.
Chair of Hlaing Thayar
Industrial Zone U Myat
Thin Aung said manufac-
turers operating without
industrial licenses in the
counLry`s IndusLrIuI zones
could be driving Myan-
mars increased tax eva-
sion.
Some manufactures
have to operate on rented
facilities which increases
production costs. That
might be why the manu-
facturers evade taxes, U
Myat Thin Aung told My-
anmar Business Today.
The government also
plans to implement mo-
bile enforcement teams
to collect tax evasion data
on areas including the
Saw Bwargyi Gone mar-
keL, TIun murkeL, Yuznu
PIuzu, BuyInLnuung mur-
ket, Bogyoke market and
Theingyi market.
Chair of Dagon Port In-
dustrial Zone U Aye Lwin
said while he welcomes
the governments plan to
levy taxes more strictly
throughout the country,
authorities shouldnt tar-
get struggling manufac-
turers following the coun-
trys industrial laws.
L Is more benehcIuI
to impose taxes on those
who have been buying
lands without using real
estate names and those
evading taxes by renting
out land instead of op-
erating businesses there
themselves, U Aye Lwin
told Myanmar Business
Today.
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New Govt Regulations to Shorten Air-
craft Lifespans P-5
The taxation board plans to hold negotiations with industrial committees, township city development
councils and manufacturers on tax-evading businesses operating in industrial areas.
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
2
LOCAL BIZ
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Board of Editors
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Ph - 09 40 157 9090
Regional Editor - Tom Stayner
International Editor - David Ross
Reporters & Contributors
Htun Htun Minn, May Soe San, Kyaw Min, Wai Linn Kyaw,
Aye Myat, Aung Phyo, Zwe Wai, Phyo Thu, David Mayes,
Sherpa Hossainy, Aundrea Montao,
Tom Stayner, David Ross
Art & Design
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DTP
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Translators
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Advertising
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Business News in Brief
Mitsubishi
Centr al bank to change r eser ve r equi r ement
r ules for pr i vate banks
At the suggestion of the IMF, the Central Bank of My-
anmar will make some major changes concerning the
reserve requirement for local private banks soon, local
medIu quoLed u senIor CenLruI Bunk om cIuI us suyIng.
They will not be allowed to have reserve requirement
in bond any more. They will be required to keep it in
cash. And they will be required to have only 5 or 6 per-
cent reserve requirement, down from 10 per cent at
presenL, LIe om cIuI suId.
Buki t Asam may i nvest i n Myanmar, Vi etnam
power plants
Indonesias state-owned coal miner PT Tambang Ba-
tubara Bukit Asam is considering investing $600 mil-
lion to build two power plants in Myanmar and Viet-
nam, with a capacity of 200 megawatts each, said CEO
Milawarma, according to Indonesian media reports.
Tuentg-six Joponese prms inoited to inoest in
SME
Myanmar has invited 26 Japanese companies to in-
vest in small and medium enterprises in agriculture,
manufacturing, telecom equipment and infrastructure
development sectors, local media reported Myanmar
Investment Commission Chairman Zeya Aung as say-
ing. Japan has been implementing the Thilawa Special
Industrial Zone project, outside Yangon, since 2013.
Aggreko gos engine deol for Mgonmor
A renLuI deuI Lo secure zoMW oI on-sILe gus engIne cu-
pacity for Myanmar has been signed by Aggreko plc. All
Asia Asset Capital signed the deal for delivery by Anda-
man Power and Utility Company Limited (APU), a My-
anmar and Thailand-focused power generation group.
In turn APU, which has a Memorandum of Understand-
ing (MoU) with the government of Myanmar to act as
an electricity and utility provider to Dawei the capital
city of the Tanintharyi region and surrounding cities,
signed a binding agreement with Aggreko.
Bridgestone estohlishes Mgonmor hronch of-
pce in Yongon
BrIdgesLone AsIu PucIhc PLe Ld (BSCAP), u wIoIIy
owned subsidiary of Bridgestone Corp, announced the
om cIuI openIng oI ILs Myunmur bruncI om ce In Yun-
gon. TIe om ce wIII Iocus on guLIerIng InIormuLIon on
the truck, bus, car manufacturing industries and tire
markets, as well as conduct related activities on be-
IuII oI LIe regIonuI Ieud om ce. TIe eusIng oI IoreIgn
investment laws has attracted many automobile com-
panies to set up a presence in fast-growing Myanmar,
where transportation infrastructures such as roads are
rapidly improving, said Kunitoshi Takeda, member of
the Board and COO of BSCAP. Bridgestone has been
oerIng ILs producLs In Myunmur sInce LIe 1qqos vIu
local channels.
Myanmar clai ms Facebook par tner shi p after
deodlg riots
A senIor governmenL om cIuI suId Myunmur Is purL-
nering with the social media site Facebook to moni-
tor Myanmar language posts following concerns that
a viral post sparked deadly sectarian clashes recently,
VOAs Burmese service reported. The unnamed aide to
President Thein Sein said in an interview with VOAs
Burmese service the government and Facebook have a
plan to manage a recurring issue in Myanmar namely
LIe InLersecLIon oI InLernuI conIcLs und socIuI medIu,
according to the report. Facebook declined to comment
on the claims. But a spokesperson for the US-based
LecInoIogy hrm ucknowIedged In u wrILLen sLuLemenL
to VOA it has been in contact with the government of
Myanmar.
Myanmar , Nor way to cooper ate i n mangr ove
conser vati on
Myanmar and Norway are seeking cooperation in
mangrove forest conservation and a conservation plan
in this respect is being worked out between the two
countries. At a meeting between minister for Environ-
menLuI ConservuLIon und oresLry U WIn Tun und vIs-
iting head of Norwegian Parliaments Standing Com-
mittee for Energy and the Environment Ola Elvestuen,
the two sides discussed cooperation with international
non-governmental organisations in rehabilitation
programs, mangrove forest conservation activities be-
Lween LIe mInIsLry und LIe WorIdvIew nLernuLIonuI
Foundation. Norway has been helping Myanmar with
the programs on conservation of biodiversity and forest
resources.
Myanmar Summary
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Batubara Bukit Asam ._ _.,.:.. -e~,..~~
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~_..:~q, ..'.: .,. '~~ q..._...q, ...:..~q
._~:. ~...:~q:q.. Milawarma ~ ._.:_~:.._.
July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
3
LOCAL BIZ
Myanmar Summary
Myanmar Petrochemical Enterprise to Let Trad-
ing Ironclud Slide; To Privutise Thunlyin Renery
S
tate-run Myanmar
Petrochemical En-
terprise (MPE) is
seeking a foreign partner
to launch a joint venture
in a bid to privatise an oil
rehnery, LIe enLILy under
the Ministry of Energy an-
nounced.
MPE last week invited a
tender to operate and car-
ry out the rehabilitation of
No.1 Rehnery (TIunIyIn),
about 14 kilometres out-
side Yangon, to improve
its production capacity.
The project, which will
be licensed under the
Foreign Investment Law,
will also undertake the
import, distribution and
storage of a wide range
of petroleum products, it
said.
The partnership is ex-
pected to land the potential
foreign partner a petro-
leum trading licence an
unprecedented move that
will curb MPEs longstand-
ing quasi-monopoly over
petroleum trading in the
Southeast Asian country.
Its a licence to print
money, a source in the
oil and gas industry who
is intimately familiar with
the project told Myanmar
Business Today.
TIIs Is LIe hrsL LIme
the government is going
Lo uIIow u IoreIgn hrm Lo
benehL Irom LIe Lrude oI
petroleum products.
If you wanted to get a
head start in Myanmars
highly lucrative petro-
leum sector this is your
permit to trade. This is
it, said the source, who
wished to remain anony-
mous.
He said this is going to
be tremendously inter-
esting for big Japanese
trading houses like Mitsui
and Itochu, who will be
eagerly pursuing this.
The partner may also
receive a licence to de-
ploy a subsea pipeline and
pumping station allow-
ing pumping oil directly
to Yangon, thus dramati-
cally reducing the cost of
petroleum distribution.
Currently, the oil is trans-
ported in a cumbersome
and expensive manner
through boats over the
Thanlyin river.
TIe TIunIyIn rehnery Is
Sherpa Hossainy one oI LIe LIree rehner-
ies in Myanmar and the
largest. It has storage fa-
cilities, which is rare in
Myanmar, and can store
crude oil and condensate
(229,600 million gal-
lons), gasoline, jet fuel,
diesel and LPG (5,500
tonnes).
However, another cru-
cial aspect is that the fa-
cility has 745 acres of land
for future expansion.
The source said techni-
cal consultants for the
project have estimated
that the current facil-
ity can be turned into a
$z-bIIIIon rehnery LukIng
advantage of the exten-
sion provision. Dutch oil
giant Shell and Malaysias
Petronas will be very in-
terested in this, he added.
He said another sweet-
ener for the deal would be
that the operating facility,
along with the land, will
come with all the neces-
sary permits that are re-
quired.
Its very hard to start a
rehnery becuuse you don`L
get the licences, particu-
larly environmental li-
cences. Now [the partner
will have] the government
as a shareholder, grandfa-
thering in, bringing all the
licences that you need.
In terms of require-
ments, MPE is seeking
businesses that have ex-
perience owning and op-
eruLIng rehnerIes, buL uIso
with experience in im-
porting and distributing
crude oil and petroleum
products. A consortium,
comprIsIng u rehnery op-
erator and a supplier of
fuel, is also possible given
its a strong combination.
To be eligible to submit
a proposal, an applicant
shall be a company or
a corporation or a con-
sortium, and must be
involved in, for at least
three consecutive years,
a direct or indirect inter-
est of at least 50.1 percent
and management control
oI rehnery(s) wILI u Lo-
tal production of at least
500,000 barrels per day
(BPD) as at 31 December
2010; and a business or
a division engaged in the
importation of crude oil,
and/or the importation,
sales and distribution
of petroleum products,
MPE announced.
MPE also stipulated
that the import, sales and
distribution activities of
the company must have
started no later than 31
December 2010, while
the volume of crude oil
import or sales and distri-
bution of petroleum prod-
ucts has to be at least 20
MM barrels per annum
for the last three years.
An important factor is
access to cheap fuel and
that comes with volume.
We ure LuIkIng ubouL
somebody who has his own
production such as Shell,
Petronas or Thailands PTT
or we are talking about a
Iuge IndependenL hrm
who is able to buy oil at
very competitive rates, the
source said.
The move is seen as
MPE trying to start with
u very smuII rehnery buL
which happens to have
the growth potential to
become a huge one that
might compete with prod-
ucts that are currently be-
ing imported.
TIere ure Iuge rehn-
eries in Thailand, Malay-
sia, Indonesia, Japan and
CIInu, so IL`s very dIm cuIL
to compete with those.
But with a large facility
[MPE] might be able to
do that.
The documentation re-
lated to the tender went
on sale on July 14 and can
be purchased upon pay-
ing a non-refundable fee
of K3 million ($3,000).
Detailed payment infor-
mation is available in the
ministry of energys web-
site.
The deadline for submit-
ting the bid is October 13,
while there would be op-
portunity for applicants
to perform due diligence
und seek wrILLen cIurIhcu-
tion in relation to the pro-
ject until September 12.
. . _., .: .q, .:~ . . , .
(MPE)._ ...~~,_~._:,
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._~:. ~_.,:.._.
MPE ._ ~.~ ~ .q,
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....~:~~ ..qe
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Mitsui . Itochu ~~.
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
Myanmar Summary
Myanmar Summary
Over 20 Environmental NGOs
Operating without Licences
May Soe San
M
ore than 20 en-
v i r o n me n t a l
monitoring non-
governmental organisa-
tions (NGOs) in Myanmar
are operating without a
licence or registration,
Yangon regions Ministry
of Environmental Con-
servation and Forestry
(MOECAF) said.
WIen LIe reguIuLIons
regarding the environ-
mental organisations
come out, these [NGOs]
will have to register at the
ministry where they will
be scrutinised, a senior
omcIuI Irom LIe mInIsLry
told Myanmar Business
Today.
He said registration of
NGOs will help authori-
ties better monitor their
projects throughout the
country.
NGOs assess the en-
vironmental and social
impacts of a countrys de-
velopment projects on the
nation, according to the
ministry. There are 20 lo-
cal and seven such inter-
national organisations in
operation in Myanmar.
Myanmar had been
without a Ministry of
Environment for a long
time before MOECAF was
founded in 2012. Two
years later, MOECAF en-
ucLed LIe hrsL new envI-
ronmental regulations
implemented in Myan-
mur Ior LIe hrsL LIme In 16
years.
Another MOECAF sen-
Ior omcIuI suId LIeIr de-
partment needs top-rank-
ing government members
support to open 15 state
und regIonuI omces Lo
monitor environmental
organisations around the
country.
We wunL Lo open dIs-
LrIcL IeveI omces, und even
LownsIIp IeveI omces, Lo
emcIenLIy monILor LIe
work of NGOs throughout
Myunmur, LIe omcIuI
told Myanmar Business
Today.
MOECAF plans to found
Environmental Conversa-
tion Committees (ECC) in
Yangon, Mandalay, Saga-
ing, Ayeyrwaddy and Tan-
inhari regions this year,
while ECCs are planned
for Bago, Rakhine, Mon,
Shan, Kachin states by
August next year and in
Magway, Chin, Kayah and
Nay Pyi Taw in 2016.
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Govt Drafts Action
Plan for Inland Ports,
Containerisation
Aung Phyo
M
yanmar has
drafted an ac-
tion plan for the
development of dry ports
(inland ports) and con-
tainerisation of rail trans-
porL Lo ensure Iree ow oI
goods and provide new
opportunities for interna-
tional trade before imple-
mentation of the ASEAN
Economic Community in
2015.
The action plan is set to
be carried out in the cur-
renL hscuI yeur oI zo1q-
15, state-run media an-
nounced.
Under the plan, the
state-run Myanmar Rail-
ways is to build dry ports
in Yangon and Manda-
lay, where three sites are
targeted as top priorities
as these sites are large
enough to hold contain-
ers and road and rail net-
works facilitating access
Lo IndusLrIuI zones.
The plan also covers
running container trains
from inland container de-
pots to sea ports directly
and the repair of 13 bridg-
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e. _: .q. . . _ e. ._
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~_..:~.:. .__e.._.
es on the Yangon-Manda-
lay railroad.
According to the Myan-
mar Railways, open ten-
ders to develop the dry
ports will be invited soon
to start construction work
within four months.
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NGOs assess the environmental and social impacts of the countrys development projects on the nation,
according to the ministry. There are 20 local and seven such international organisations in operation in
Myanmar.
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Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
New Govt Regulations to Shorten Aircraft Lifespans
Htun Htun Minn
T
he Department
of Civil Aviation
(DCA) under the
Ministry of Transport has
revealed new government
regulations that will re-
duce the standard lifes-
pan of domestic airplanes
by hve yeurs.
Prior to the government
changes, commercial air-
ways were allowed to op-
erate airplanes in Myan-
mar for up to 25 years.
The new regulations
were announced by DCA
om cIuIs uL LIe MId-Term
Review on Air Transpor-
tation Meeting.
DCA director general
U WIn Swe Tun LoId My-
anmar Business Today
that domestic airlines
planning to import new
planes are likely to choose
younger models under the
governments new regula-
tions.
We wIII muke sure we
buy or lease planes with
many years left before
their expiry to maximise
ILs usuge, U WIn Swe Tun
said.
DomesLIc uIrwuys yIng
planes in operation for
longer than the allowed
20-year lifespan will likely
sell their aircrafts to other
countries.
President of Myanmar
Airways International
(MAI) U Khin Maung Lat
told Myanmar Business
Today that the airways
will sell their older planes
to generate revenue for
newer aircrafts.
Countries in Africa and
the Middle East have
made proposals to secure
Myanmars aircrafts older
than the governments
newly allowed 20-year
lifespan, according to
MAI.
Executive Director of
AsIun WIngs AIrwuys U
Lwin Moe said that the
company supports DCAs
new regulations.
If the situation at the
local airports improves,
and more instruments are
installed, the airlines have
plans to use better types
of aircrafts, U Lwin Moe
told Myanmar Business
Today.
The Department of Civil
Aviation revealed 53 air-
crafts are domestically
registered the total in-
cludes 48 passenger air-
planes, 2 helicopters and
3 aerial transport carriers.
One private domestic
uIrIIne senIor om cIuI suId
by decreasing aircraft
lifespans the government
wIII Increuse hnuncIuI
costs for local airlines.
Its not easy to cover
the cost for a plane in 20
years, and the longer a
plane is used, the more
benehcIuI IL Is Ior LIe
owner, LIe om cIuI suId.
He said the govern-
ments newly proposed
regulations to reduce
plane service commis-
sions wont be commer-
cially feasible for local
airlines.
This regulation will
cost airlines a lot of mon-
ey, especially at a time like
this when competition is
high in the industry.
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Airways . . q._.
Aircrafts are seen at Nyaung Oo Airport in Bagan, Myanmar.
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
Myanmar Summary
Myanma Airways and ATR to Build Airplane Repair Centre
S
tate-run Myanma
Airways (MA) has
conhrmed IL wIII
construct a repair center
with France-based air-
craft manufacturer Aerei
da Tansporto Regionale
Phyo Thu (ATR) Lo hx uIrpIunes uL
Yangon International Air-
port.
Currently, the ATR
planes in use in Myanmar
have to be taken overseas
to Vietnam, India or Sin-
gapore for repairs at larg-
er-scale factories.
However, ATR and MA
plan to build a repair
center at Yangon Interna-
tional Airport in hopes to
reduce local airplane re-
pair costs.
Managing Director of
Myanma Airways U Than
Tun said construction of
the Yangon repair center
- which will handle minor
and large scale repairs on
pIunes - wIII be hnIsIed
In LIree yeurs. We Iuve
30 ATR airplanes here. If
this project is implement-
ed these planes can be re-
paired domestically and
we plan to obtain inter-
nuLIonuI cerLIhcuLes Lo re-
pair planes from around
the world, U Than Tun
told Myanmar Business
Today.
TIIs Is LIe hrsL LIme
Myanmar Airways has
collaborated with ATR to
construct a factory.
Future plans to con-
struct repair factories in
other airports around
Myanmar are likely to be
discussed.
Myanmar Airways, who
operate domestic travel
services in the country,
plans to start operating
InLernuLIonuI IgILs us
Myanmar National Air-
ways in soon.
Myanmar to Resume Jade Mining in Kachin State
T
he Jade Supervi-
sory Work CommIL-
Lee Ius conhrmed
Myanmar will resume the
countrys suspended min-
ing operations in its trou-
bled Kachin State.
Starting September 1,
the government plans to
lift its two-year mining
suspension on the area.
The government sanc-
tions were introduced
to help resolve ongoing
conIcLs In LIe ureu uILer
u ceusehre beLween LIe
army and ethnic rebels
broke down in 2011.
U Tin Shwe, a jade
trader from Sagaing, said
removing the sanctions
should increase jade sales
in the countrys local in-
dustry.
We wIII be more com-
peLILIve In LIe omcIuI
murkeL buL omcIuIs need
to strictly supervise the
risks associated with un-
sustainable resource ex-
traction, U Tin Shwe
said.
Myanmar is the worlds
largest exporter of high-
quality jade. The country
relies mostly on demand
from Chinese markets to
export these products.
Mining operations in
Phyo Thu Lonekhin, Hpakhant,
Mawlu, Mawhan and
Khandi townships were
the countrys largest jade
production areas before
being suspended in May
2012.
Myanmar gained more
than $65 million from
mining extracts exports
sInce LIe sLurL oI LIe hscuI
year on April 1.
Industry experts said
Myanmar should increase
monitoring of illegal jade
exports to reduce raw re-
source smuggling to in-
ternational and domestic
blackmarkets.
Raw jade value from il-
legal trade routes has
reached $3.9 million
(K3.92 billion) over the
past four years, according
to Myanmar Gems Asso-
ciation estimates.
Myunmur Ius seIzed uI-
most $1 million in illegal
ruw jude so Iur LIIs hscuI
year, which ends March
2015.
TIe counLry`s omcIuI
jade export earned $1.01
bIIIIon over LIe IusL hscuI
period showing the indus-
trys recent development
in Myanmar.
Myanmars 51st Jade
and Gems Emporium,
held from June 26 to July
6 in Nay Pyi Taw, brought
in a record $3.5 billion to
the country this year. Last
years emporium brought
in up to $2.6 billion worth
of jade sales.
Myanmar Summary
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Corrigendum
In the article Kelvin Chia Expands to
Mandalay appearing on Page 20 of My-
anmar Business Today (Volume 2, Issue
27), the caption of the photo in the article
was wrongly stated. The correct caption is
Cheah Swee Gim, Director of Kelvin Chia
Yangon, and Goh York Lin, President of
Keppel Land Myanmar.
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A Yangon Airlines aircraft takes off in Yangon International Airport.
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
7
LOCAL BIZ
Myanmar Summary
Myanmar Summary
Finance Ministry to Work towards A Transparent Budget
Htun Htun Minn
T
he Ministry of Fi-
nance has pledged
to introduce trans-
parent budgetary sys-
tems, in cooperation with
LIe WorId Bunk, Lo meeL
international standards
of openness, according
Lo depuLy mInIsLer Ior h-
nance Dr Lin Aung.
He said on the advice of
LIe WorId Bunk, LIe mIn-
istry is working to ensure
transparency through
modernising manage-
menL oI pubIIc hnunces.
To inform the public
how their taxes are spent
and how debts are paid
is the duty of the govern-
ment, he said.
The ministry has indi-
cated it will move towards
deIIverIng u cILIzen`s
budget where infor-
mation regarding govern-
ment income and expend-
iture, in easily understood
language, is disclosed.
Major requirements
In deIIverIng u cILIzen`s
budget are disclosure of
pre-budgeL hnuncIuI es-
timates, details of the
proposed and completed
budget, inter-year report-
ing, end-of-year reporting
and budgetary audits.
PIuns Lo reIorm pubIIc h-
nancial management have
been in place since the start
oI LIe zo1q-1 hscuI yeur,
with the project expected
Lo be ImpIemenLed In hve
sections: project planning
for improving taxation col-
lection, improved budget-
ary planning, implement-
Ing budgeL und hnuncIuI
reporting and improving
external oversight capacity.
The Ministry of Fi-
nance indicated it had
been working towards re-
Iorm oI LIe pubIIc hnun-
cial management system
since 2012.
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UMW Wins
$51-million
Myanmar Contract
Zwe Wai
M
al aysi a- based
UMW OII & Gus
C o r p o r a t i o n
BId`s (UMWOG) subsIdI-
ury UMW OsIore DrIII-
ing Sdn Bhd has been
awarded a contract by
Thailands PTTEP Inter-
national for the provision
of drilling rig services.
The contract, with an
estimated value of $51.3
million, will be based
in the Gulf of Mottama
(Block M3) in Myanmar,
wIere UMW wIII us-
sIgn ILs newesL rIg, UMW
NAGA 5.
TIe conLrucL Is Ior hve
hrm weIIs (upproxImuLeIy
250 days excluding mo-
bilisation and demobili-
sation), and may be ex-
tended for one optional
weII LIereuILer, UMWOG
said in an announcement
on local stock exchange
Bursa Malaysia.
UMW NAGA Is cur-
rently in the Philippines,
serving a drilling contract
with NIDO Petroleum
Philippines for drilling
operuLIons osIore PIII-
ippines, which is expected
to be completed by July.
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OG ~...,.q,~..e:q:.e
.q.~ . ~ ._ .. PTTEP
~.~. .q,~..e:_....
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UMW ~ ..,..:...~
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UMW ._ .q,~.|.~.
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_e._.. q~..|. ~ ~~.
~..e:._~._. UMW
OG ~ ._~_:.._.
Representatives attend a session of the union parliament in Nay Pyi Taw.
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Myanmar Business Today
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LOCAL BIZ
8
Myanmar Rosewood Stolen to Feed Chinas
Elite Furniture Craze
Rosewood in Myanmar to go extinct in three years: EIA
Phyo Thu
M
yanmars pre-
cious rosewood
tree species are
heading for imminent
commercial extinction at
the hands of Chinas mul-
ti-billion dollar rosewood
furniture boom, an envi-
ronmental conservation
group said.
The illegal trade in rose-
wood species is driven by
expanding wealthy elites
in China and their desires
for high-end Ming and
Qing dynasty reproduc-
tion furniture, collectively
known as hongmu.
AL u brIehng, LIe EnvI-
ronmental Investigation
Agency (EIA) said if cur-
rent trends persist unad-
dressed, the two most tar-
geted hongmu species in
Myanmar tamalan and
padauk could be logged
to commercial extinction
within as little as three
years.
TIe brIehng IoIIows
EIAs May report Routes
of Extinction, which doc-
umenLed Iow LIe IrenzIed
pressure on Siamese rose-
wood has all but eradi-
cated the species from
countries neighbouring
Myanmar, leaving Thai-
land facing violence and
conIcL wILIIn ILs IoresLs.
Virtually overnight, My-
anmar has become the
biggest hongmu log sup-
plier to China worldwide.
If Myanmar doesnt
seek help, now, then these
precious species will quite
simply become extinct
very soon, warned EIA
Forests Campaign Leader
Faith Doherty.
The vast bulk of this
stolen timber is smug-
gled into China across its
land border with Myan-
mar although Myanmar
has a log export ban in
place, China simply isnt
respecting its neighbours
laws and allows these
rosewoods Lo ow In un-
hindered.
China has little re-
gard for forestry or tim-
ber trade laws in foreign
countries but does show
some respect for the Con-
vention on International
Trade in Endangered Spe-
cies (CITES), and we be-
lieve the best short-term
action Myanmar can take,
as a matter of urgency,
is to secure listing for its
threatened rosewood spe-
cies via CITES.
EIA contends that the
huge scale of illegal and
unsustainable logging
poses a real threat to gov-
ernance, the rule of law
and the viability of dwin-
dling forests.
Chinas 2013 imports
of Myanmars rosewood
logs were triple the vol-
ume and value recorded
in 2012, and nearly six
times the 2010 trade. Sei-
zures oI IIIeguI rosewood
in Myanmar since 2008
have followed almost ex-
actly the same pattern as
imports into China.
The London-based
agency urged the govern-
ment to seek CITES Ap-
pendix III protection for
its at-risk hongmu spe-
cies Dalbergia barien-
sis oliveri (tamalan) and
Pterocarpus macrocarpus
(padauk) at the soon-
est opportunity to ensure
trade is in line with sus-
tainable exploitation of
existing standing stocks.
Myanmar needs help
and CITES is one way for
the Government to seek
assistance in protecting
this valuable resource.
EIA is also calling for
CITES Parties to assist My-
anmar in its need for a fully
functioning Management
Authority, Doherty said.
Myanmar Summary
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Ministry Drafts Long-term Plan to Tackle Energy Crisis
Htun Htun Minn
T
he Asian Develop-
ment Bank (ADB)
and the Ministry of
Energy (MoE) are said to
be in the process of draft-
ing and implementing a
long-term energy master
plan, according to U My-
int Zaw, deputy minister
for energy.
According to statistics
released by the MoE, My-
anmar produced only 42
percent of gasoline and
11 percent of the diesel
consumed in the 2013-14
hscuI yeur. TIIs sIorLIuII
was reportedly met with
imports of 97 million gal-
lons of gasoline and 330
million gallons of diesel.
The government, in co-
operation with the ADB,
is currently preparing
long-term plans for the
coordination and conser-
vation of energy resourc-
es.
This involves plans for
storage to ensure fuel
availability in the future
and plans for the opera-
tion and extraction of oil
and gas from onshore and
osIore heIds.
To ensure this, the MoE
opened 16 onshore oil and
gus heIds, In CenLruI My-
anmar and Ayeyarwaddy
region, to 12 international
companies to reduce reli-
ance on imports.
A tender process for an
additional 18 oil and gas
heIds In LIe sume ureu
has been underway, since
2010, with deals to operate
16 oI LIe heIds - In cooper-
ation with 10 international
businesses underway.
The tender process for
onsIore und osIore
zones Ius seen unnounce-
ments since 2010, with
the latest announcement
made last month.
Preparation for oil and
gas extraction in an addi-
LIonuI 1q osIore heIds In
Rakhine state and Tanin-
tharyi region, in coopera-
tion with eight interna-
tional businesses, is also
being carried out.
Tenders are also un-
derway for an additional
o osIore heIds, In LIe
same area, preparation
for 21 of which is under-
way.
The ministry has said it
is focused on using natu-
ral gas extracted from
LIese heIds Lo boosL ener-
gy production. They have
also indicated they will
attempt to source power
from several renewable
sources, including solar,
wind, hydro and biomass
generation.
Myanmars daily extrac-
tion of crude oil currently
falls short of required die-
sel and gas use, requiring
imports from Thailand
and Singapore.
It has been suggested if
this discrepancy is not ad-
dressed in the future, My-
unmur`s Lrude dehcIL wIII
further deteriorate.
Myanmar Summary
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
9
Contd. P 20... Contd. P 20...
Novotel
Case Study: How to Enter the Market in Myanmar
Case 1: XYZ BV
Strohal Legal Group presents a weekly case study aiming to provide a legal overview and updates on the legal framework in Myanmar
T
he XYZ BV is a
Dutch company
that provides ser-
vIced omces Lo ILs cIIenLs
In dIerenL counLrIes. AI-
ter the successful estab-
lishment in Singapore the
XYZ BV is now seeking for
a business opportunity to
enter the market in My-
anmar.
The XYZ BV is ap-
proaching us with the
query of setting up a
company in Myanmar
or to start with a market
reseurcI by sendIng hrsL
a professional to Myan-
mar. Further points are
the company type that
would suite best for their
investment strategy, ob-
stacles for foreign compa-
nies entering the market
as well as the rules and
regulations on company,
tax and labour law re-
garding foreign and local
employment contracts by
complying with Myanmar
labour law.
To hnd LIe rIgIL busI-
ness start-up based on the
possibilities in Myanmar
we advised XYZ BV on
the advantages and disad-
vunLuges oI LIe dIerenL
company types such as
represenLuLIve omce, MC
company or a Non-MIC
company relating to capi-
tal requirements, foreign
investment protection
and tax issues.
Foreigners like Mr M,
the CEO of the XYZ BV,
may set up a 100 percent
foreign-owned company
either under the Myanmar
Foreign Investment Law
or the Myanmar Compa-
nies Act. If the XYZ BV
will set up a business ac-
cording to the Companies
Act the minimum share
capital requirement is
$50,000 for service com-
panies and $150,000
for manufacturing com-
panies.
Furthermore, it is re-
quired for a foreign com-
pany to obtain a permit
from Directorate of In-
vestment and Company
Administration (DICA).
A DICA permit is gener-
uIIy renewubIe every hve
years. Under the Foreign
Investment Law (FIL) it
is at the discretion of the
MIC (Myanmar Invest-
ment Commission) to
decide on the minimum
share capital and also the
decision is based on the
desired business activi-
ties.
Before a foreign compa-
ny is set up in Myanmar,
it is required to apply
for Permit to Trade from
the Ministry of National
Planning and Economic
Development before it
can apply for registration
of the company with the
Registrar of the Compa-
nIes RegIsLruLIon Omce.
However, the Permit
to Trade shall not be un-
derstood in the common
sense and rather means
Permit to do business.
Although the government
did not announce a pro-
vision of such permit, no
regIsLruLIon cerLIhcuLes
or DICA permit for a for-
eign trading company
(distributing and selling
products) are issued at
present.
Therefore, trading ac-
tivities are still restricted
Lo Myunmur cILIzens. or
this reason if trading is
an important and main
part of the XYZ BV. they
should consider setting
up a 100 percent local-
owned company under
the Myanmar Companies
Act which they can com-
mit to act as agent and/or
distributor for their im-
ported goods.
The XYZ BV as a foreign
company has to take into
account that not all sec-
tors are open for foreign
investors. However, the
law provides the option to
enter into a joint venture
with the government for
restricted sectors. Provid-
Ing servIced omces IIke
the XYZ BV is not a re-
stricted sector. Based on
the given fact we advise
the XYZ BV to form a MIC
approved company under
the FIL.
Therefore XYZ BV can
reach the following in-
cenLIves und benehLs IIke
income tax exemption
from the year of starting
production or services ac-
tivities, up to continuous
hve yeurs und uIso exemp-
tion or relief from income
Lux on prohL wIIcI Is re-
invested within one year
and as well as exemption
or relief from income
tax up to 50 percent of
LIe prohL uccrued Irom
exports, repatriation of
prohL und so on.
Furthermore the for-
eign investor is protected
under the FIL against
nationalisation and ex-
propriation, which is also
guaranteed by law. Ad-
ditionally, the XYZ BV,
if registered under the
FIL is eligible to lease not
only from the state but
from private individuals
as well.
Lease periods extend
up to 50 years and after
this period, the Myanmar
Investment Commission
may authorise an exten-
sion of further 10 years,
which is again renewable
for another 10 years.
In our following article
we will advise the XYZ BV
about labour law and im-
migration issues.
Strohal Legal Group,
founded by Dr Theodor
Strohal in 1979, is a law
Stefanie Siegfried
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Myanmar Summary
U
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Myanmar Summary
Myanmar Summary
Chinese emund OHer New Opportonities
for Myanmar Rice Exporters
May Soe San
M
yanmars rice
exporters can
Increuse prohL
margins by taking advan-
tage of Chinas growing
demand for high-quality
rice, Muse Board of Trade
Chairman U Chan Thar
Oo said.
Myanmar exported
850,000 tonnes of rice
to China in 2014, while
daily trade volume has hit
3,500 tonnes a day this
month.
U Chan Thar Oo said
Myanmar must continue
increasing export rates to
gain a foothold in the de-
veloping Chinese market-
place.
The country can gener-
uLe Iurge prohLs by buIId-
ing a long-term relation-
ship of high quality rice
trade with China, he told
Myanmar Business To-
day.
Myanmar generates a
large supply of low-quali-
ty rice, which the country
sells at a cheaper price to
countries interested in
these products.
Rice exports are pro-
duced in two categories
a lower quality known as
25 percent broken rice or
a high quality known as 5
percent broken rice.
Africa is Myanmars
dominant rice export
market, importing mostly
25 percent broken rice.
China is focused on im-
porting high-quality rice
to meet the growing de-
mands of the countrys
large population.
The country only buys
lower quality rice varieties
at cheap prices to account
for the production costs
of having to mill products
into higher qualities after
they reach China.
Myanmars rice milling
facilities remain weak in
their ability to scale up
their operations due to
low investment and mini-
mal technology available.
It is estimated that My-
anmars dilapidated mill-
ing facilities each only
process about 50 tonnes
of rice per day, whereas
to meet market demand
for domestic consump-
tion and increased quality
exports, such as China de-
mands, milling operators
would need to process at
least 250 tonnes a day,
rice traders say.
U Chan Thar Oo said
many local rice producers
In Myunmur cun`L uord
to sell rice at the low pric-
es demanded by Chinese
importers.
We Iuve Lo gIve Iow
prices given their subse-
quent production costs to
ensure theyre still inter-
ested in buying our local
products, he said.
The Myanmar Rice Asso-
ciation forecasts Myanmar
to export 1.5 million tonnes
of rice this year including
expanded markets in the
European Union.
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ILO, Myanmar to Develop
Employers Capacity
Kyaw Min
M
yanmars apex
business associ-
ation and the In-
ternational Labor Organi-
zuLIon (O) wIII IuuncI
a project for boosting the
capacity of employers or-
ganisations in Myanmar
and promoting work prin-
ciples and sustainable en-
terprises.
According to a memo-
randum of understanding
(MoU), signed between
the Union of Myanmar
Federation of Chambers
of Commerce and Indus-
try (UMFCCI) and the
ILO, the project, aimed at
solving disputes between
employers and employ-
ees and promoting skill of
labourers, will be imple-
mented up to April 2016.
Under the project, the
ILO Chief Technical Ad-
vIser und UMCC omcers
will jointly conduct busi-
ness training and work-
shops for employers in a
bid to create harmonious
relations between employ-
ers and employees.
TIe O omcIuIs
stressed the need for ef-
hcIenL member represen-
tation and the role of pri-
vate sector in Myanmars
economic, social and
democratic development.
They also voiced sup-
port for the development
of UMFCCI and business
organisations.
A Myanmar industries
association leader said
that Myanmar doesnt
have enough skilled work-
ers compared with other
countries and the work-
ers need more technical
knowledge and other sup-
ports.
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
11
www.VDB-Loi.com
HIGHLIGHTS:
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The fiist expeiiences with iegisteiing secuiity on Nyanmai assets
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Banking Regulatory Update:
Licensing of Foreign Banks,
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OUR OFFICES
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
Aostruliu to OHer $,m Ior Myunmur's Idocution Sector
David Ross
A
ustralian Foreign
Minister Julie
Bishop has an-
nounced plans by her gov-
ernment for increasing
educational opportunities
for primary and tertiary
students in Myanmar.
During her recent three-
day visit to Myanmar,
she said the Australian
government will provide
a $27.8 million in fund-
ing to boost services
in 43,000 schools and
strengthen teacher train-
ing colleges for tertiary
sectors.
Education is essen-
tial to the success of the
Myanmar governments
brouder reIorm eorLs.
Improvements in educa-
tion will help people de-
velop the skills to take ad-
vantage of the expanding
economic opportunities,
she said in a statement.
This funding is in addi-
tion to Australias com-
mitment of $24.6 million,
aimed at promoting eco-
nomic growth and com-
munity engagement with
the peace process.
Myanmars education
sysLem sLIII suers LIe Ieg-
acy of chronic underinvest-
ment and mismanagement
in almost every school and
educational institution
with past governments
failing to provide invest-
ment or upkeep.
WILI Iess LIun IuII oI
sLudenLs hnIsIIng sec-
ondary schooling, My-
anmar faces the issue of
falling participation rates
in its education system,
Inumed by LIe IucL LIuL
many children do not en-
rol or for many are unable
to attend primary school.
The Australian govern-
ment, in cooperation with
the Ministry of Education
und LIe WorId Bunk, wIII
expand existing school-
grant and stipend pro-
grams in addition to add-
ed programs of training
and curriculum-manage-
ment assistance.
ApurL Irom LIe hnun-
cial aid, Australia will
also provide 50 long-term
Australia Awards for My-
anmar students to study
in Australia in 2015 and
it is also exploring oppor-
tunities within the New
Colombo Plan to enable
Australian students to
study in Myanmar.
President U Thein Sein
visited Australia last year,
meeting with ex-Prime
Minister Julia Gillard, in
what was widely seen as a
historic visit.
It was during this visit
LIuL omcIuI Iunguuge wus
put under the spotlight,
with the country then re-
ferred to as Myanmar and
its biggest city as Yangon.
However, in recent times
the Australian government
has referred to the country
In omcIuI communIqus us
both Burma and Myanmar
and its biggest city as both
Rangoon and Yangon.
Such a move was pre-
dicted following the
change of Australian gov-
ernment late last year but
has been tipped as threat-
ening some diplomatic
gains made between the
two countries.
Myanmar Summary
Myanmar Summary
Myanmar Summary
Myanmar to Hold Intl Food,
Beverage Fair in Yangon
M
yanmar will hold
LIe hrsL InLernu-
tional food and
beverage expo in Yangon,
the Union of Myanmar
Federation of Chambers
of Commerce and Indus-
try (UMFCCI) announced.
The International Food
and Beverage Exhibition,
jointly organised by the
Thai Chamber of Com-
merce, Board of Trade of
Thailand and ICVeX Co
Ltd, will be held at Myan-
mar Convention Center
from July 24-26.
The three-day exhibi-
tion will feature manu-
facturers, suppliers and
brands, mostly from Thai-
land, who will promote
their food and beverage
lines ranging from raw
IngredIenLs Lo hnIsIed
products.
It will also cover food
service, food and bever-
age catering equipment
and supplies as well as
franchising opportunities.
Zwe Wai The exhibition will help
to promote foreign manu-
facturers and suppliers as
well as Myanmar enter-
prises, hotels, restaurants
and catering companies,
the organisers said.
Myanmar Jade And Gems Emporium
Nets Record High $3.5 Billion
M
yanmars latest
omcIuI suIe oI
jade, gems and
pearl brought in a record
high $3.5 billion, a senior
omcIuI Irom LIe MInIsLry
of Mines said.
Myanmar is the worlds
biggest source of high-
quality jade, much of it
coming from Kachin state
in the north, but the in-
dustry has been disrupted
sInce u ceusehre beLween
the army and ethnic re-
bels in the region broke
down in 2011.
Much of the jade is
smuggled over the border
to China.
The government general-
Iy IoIds omcIuI suIes LwIce
a year and the latest was in
the capital, Nay Pyi Taw,
from June 24 to July 6.
Total proceeds from
the sale of jade, pearl and
gems like ruby and sap-
phire at the 51st Empo-
rium amounted to over
2.6 billion ($3.54 bil-
lion), exceeding our ex-
Aung Hla Tun
pectations and hitting a
record IIgI, suId WIn
Htein, a director general
at the Ministry of Mines.
He said total proceeds
from all last years sales
came to about $2.6 billion.
AnoLIer mInIsLry om-
cial, who asked not to be
IdenLIhed becuuse Ie wus
not authorised to speak to
the press, said most of the
buyers of the jade were
from China, Hong Kong,
Thailand and Singapore,
while local buyers bought
most of the gems.
AccordIng Lo omcIuI
data compiled by the
state-run Central Statis-
tical Organisation (CSO),
Myanmar produced 15.06
million kg of jade in the
hscuI yeur LIuL ended In
March 2014, compared
with 19.08 million in
2012/2013 and 43.19 mil-
lion in 2011/2012.
Reuters
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President U Thein Sein (L) meets with visiting Australian Foreign
Minister Julie Bishop in Nay Pyi Taw.
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Merchants view the jade during the 51
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porium at Maniyadana Emporium Hall in Nay Pyi Taw.
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
Myanmar Summary
Japans Current-Account Surplus
Masks Export Weakness
Masaaki Iwamoto and
Chikako
J
apan posted a fourth
straight current-
account surplus, as
income from overseas in-
vestments masks the fail-
ure of the yens slide to
boost exports.
The excess in the wid-
est measure of trade was
522.8 billion yen ($5.1 bil-
IIon) In Muy, LIe hnunce
ministry reported in To-
kyo today, beating the
median forecast of 417.5
billion yen in a Bloomb-
erg survey. Exports rose
2 percent from a year ear-
lier.
Export volumes remain
under the level when
PrIme MInIsLer SIInzo
Abe came to power in
December 2012, despite
the yens 16 percent slide
against the dollar over the
period. Abes task is to en-
sure his growth strategy
- the third of his so-called
three arrows of Abenom-
ics - gives companies
enough of an edge over
overseas rivals to boost
outgoing shipments.
The strength of recov-
ery in global demand will
play a bigger role than
LIe currency In uecL-
ing Japanese exports,
said Koichi Fujishiro, an
economist at Dai-ichi Life
Research Institute in To-
kyo. Sluggish exports can
be attributed to the rising
ratio of overseas produc-
tion.
Japans Topix (TPX) in-
dex of stocks followed
U.S. shares lower, drop-
ping 0.4 percent in morn-
ing trading in Tokyo, on
track for a second straight
decline. The yen rose 0.1
percent against the dollar
to 101.78 as of 12:22 p.m.
in Tokyo. Bloomberg
Ang With $10 Billion Primes San
Miguel for Southeast Asian Hunt
Cecilia Yap
S
an Miguel Corp., the
biggest Philippine
company, is pre-
pared to spend as much as
$10 billion to buy assets
in Southeast Asia, Presi-
dent Ramon Ang said.
An energy-related target
has the potential to boost
sales by more than 50 per-
cent, Ang said on July 2,
without giving a price and
timeline. The company
has announced 41 acqui-
sitions worth $7.8 billion
since 2000, about three-
quarters of which were
made since 2008, when it
began moving out of the
food and brewery busi-
ness, according to data
compiled by Bloomberg.
San Miguel said in De-
cember 2012 it was look-
ing at a $5 billion acquisi-
tion in the gas industry.
There are a lot of op-
portunities in the region
and most of these deals
you can win with a small
amount, Ang said in his
omce In MunduIuyong
CILy. We Iuve u very IIgI
leverage capacity.
This year, Ang forecasts
prohL wIII Iuve u doubIe-
digit growth. Net income
gained 42 percent to 38.1
billion pesos ($874 mil-
lion) last year.
The company, which
owns the Philippines big-
gest electricity producer
SMC Global Power Hold-
ings Corp. and the na-
tions largest oil company
Petron Corp. (PCOR), has
also initiated a $9 billion
capital spending plan to
expand its oil, power and
infrastructure businesses
by 2016, Ang said. Most
of the investments will
be funded internally, he
said. Bloomberg
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
Indonesias Election Has Investors on Edge
Karl Lester M. Yap,
Brian Leonal and
Novrida Manurung
T
he potential for
weeks of uncertain-
ty over Indonesias
presidential-election re-
sult puts the onus on the
nations central bank to
contain a current-account
dehcIL LIuL Ius IurL LIe
rupiah.
Bank Indonesia, meet-
ing to set policy today, is
forecast to keep its bench-
mark rate unchanged for
an eighth meeting even as
Southeast Asias biggest
economy cools, accord-
ing to all 21 economists
surveyed by Bloomberg
News. Lower rates would
add to domestic demand
that has spurred the na-
tions current-account
dehcIL.
Jakarta Governor Joko
WIdodo won IusL week`s
voLe In mosL unomcIuI
counts, even as ex-Gen-
eral Prabowo Subianto
declared victory ahead of
omcIuI resuILs due by JuIy
zz. WILI monLIs Lo go be-
fore a new administration
can take charge, scope is
IImILed Ior hscuI-poIIcy
und budgeL hxes Lo eec-
tively address the coun-
Lry`s hnuncIng sIorLIuII.
Right now the best way
is to continue to keep
monetary policy relatively
tight because BIs prior-
ILy LIIs yeur reuIIy Is h-
nancial market stability,
said Gundy Cahyadi, a
Singapore-based econo-
mist at DBS Group Hold-
ings Ltd., Southeast Asias
biggest lender. The cur-
renL-uccounL dehcIL sum-
murIzes wIuL Ius been
wrong with the economy
in recent years.
The central banks fo-
cus on a current-account
gap that made the rupiah
Asias worst-performing
currency last year under-
scores the economic chal-
lenge for the next gov-
ernmenL. SIouId omcIuI
results later this month
give the presidency to
WIdodo, known us Joko-
wi, with a narrow win,
he could still face a frag-
mented parliament in any
bid to cut the nations reli-
ance on fuel subsidies and
free up funds to invest in
infrastructure.
Strong Leodership
The new president in-
herits a slowing economy
which is in dire need of
infrastructure investment
and strong leadership,
said Chua Hak Bin, a re-
gional economist at Bank
of America Corp. in Sin-
gapore. Reviving growth,
investment and exports
should be key.
Bank Indonesia isnt the
only central bank in the
region with a greater bur-
den on monetary policy
from political uncertain-
ty. The Bank of Thailand
lowered interest rates
twice between late No-
vember and mid-March,
after months of public
protests and political tur-
moil undermined domes-
tic demand.
Indonesias rupiah for-
wards jumped the most
since February and dollar
bonds advanced last week.
One-month non-deliver-
ubIe Iorwurds Lruded o-
shore rose 1.4 percent to
11,583 per dollar from July
8 as of 8:22 p.m. in Sin-
gapore, according to data
compiled by Bloomberg.
That was the biggest in-
crease since Feb. 14.
Remai n Vi gi lant
Bank Indonesia Gover-
nor Agus Martowardojo
has held the reference
rate at 7.5 percent since
last raising it in Novem-
ber even us InuLIon eused
to a one-year low in June.
We ure sLIII IookIng
for no policy moves in
the near term, said Lim
Su Sian, an economist
at HSBC Holdings Plc in
Singapore. Regardless
of the election outcome,
we do want to see con-
tinued hawkishness from
the central bank and in-
dications it does remain
vigilant particularly with
the external imbalances,
which are still looking
very vulnerable.
Consumer prices gained
6.7 percent from a year
earlier in June, slowing
from 7.32 percent the pre-
vious month. Policy mak-
ers aim to narrow the cur-
renL-uccounL dehcIL Lo z.
percent of gross domestic
product by the end of this
year from 3.3 percent in
2013.
Indonesias $878 billion
economy expanded 5.21
percenL In LIe hrsL quur-
ter from a year earlier, the
weakest pace since 2009.
Jokowi has said the econ-
omy can grow more than
7 percent with conducive
investment and regula-
tory framework. He has
promised to give incen-
tives for export-oriented
industries and plans to
build double-track rail-
ways in Java, Sumatra
and Papua.
Prabowo has pledged to
spread wealth out of the
capital to rural communi-
Myanmar Summary
Indonesias Presidential candidate Joko Widodo casts his vote at a polling station in Jakarta.
D
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/
B
lo
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ties by allocating at least 1
billion rupiah ($86,000)
every year for each vil-
lage. He has also prom-
ised to raise wages from
about 3 million rupiah a
month to 6 million rupiah
wILIIn hve yeurs, und es-
tablish banks for farmers
und hsIermen.
Bloomberg
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
Riding on Modinomics Hopes, India's
Indebted Companies Rush to Lock in Funds
Sumeet Chatterjee
S
everal private Indian
hrms wunL Lo puy
o debLs by ruIsIng
up to $5 billion this year
through share sales, em-
boldened by a surge in the
stock market and an an-
ticipated economic recov-
ery after Narendra Modi
was elected as prime min-
ister.
Leading the equity issu-
ances in the private sector
ure IIgIIy Ieveruged hrms
sucI us GVK Power & n-
frastructure Ltd, Adani
Enterprises Ltd and oth-
ers in capital-intensive
industries such as infra-
structure, metals and tel-
ecommunications, bank-
ers say.
These companies bor-
rowed heavily in the
past few years, when In-
dias economy was one of
the fastest growing in the
worId, buL were squeezed
by the slowdown in
growth last year and the
slide in the rupee to re-
cord lows.
In most cases, banks
stopped giving fresh loans
to these indebted compa-
nies, whose loans often
exceeds their equity sev-
eral times over, leaving
them with few options but
to tap the equity market
to raise money to reduce
their debt.
There will be a stam-
pede of Indian companies
going to the markets and
trying to reduce leverage
to take advantage of this
some kind of Modinom-
ics, said Eric Mookher-
jee, a Paris-based fund
manager at Shanti India,
which manages Indian
stocks.
The access to capital is
much easier now, and you
need to clean up your bal-
ance sheet before you get
into the investment mode
again. So, the engine has
now been started.
Bankers say 2014 is
poised to become the
besL yeur Ior equILy oer-
ings in India since 2010,
which saw some $24 bil-
lion raised by state-run
and private companies.
n zo1q, sLuLe-run hrms
are expected to raise up to
$6 billion via share sales,
which, in addition to the
$5.4 billion already raised
In LIe hrsL-IuII oI LIe
year and the anticipated
issuances by the private
sector, would bring the
total amount to around
$16 billion for the year,
according to investment
bankers estimates and
Thomson Reuters data.
The rush to raise capital
could gather speed if the
federal budget on July 10
paves the way for a revival
of the economy after the
longest spell of growth be-
low 5 percent in a quarter
of a century, bankers say.
Reuters
Myanmar Summary
China June Trade Data Misses Fore-
casts, Doubts Over Economy Linger
C
hina's trade perfor-
mance improved
in June but still
missed market forecasts,
reinforcing expectations
that Beijing will have to
unveil more stimulus
measures to stabilise the
economy and meet its
2014 growth target.
Exports rose 7.2 per
cent in June from a year
earlier, the best pace in
hve monLIs, buL weII be-
low a median forecast in
a Reuters poll for a rise of
10.6 percent.
Imports also missed ex-
pectations, growing by 5.5
percent versus forecasts
of 5.8 percent, although
they returned to posi-
tive territory after a small
drop in May.
China's combined ex-
ports and imports edged
up jusL 1.z percenL In hrsL
six months of the year, data
showed last Thursday.
Aileen Wang and
Kohgui Qing
"For the economy to re-
bound in the second half
of this year, we believe
more policy support is
necessary due to the un-
steady recovery base,"
suId Wung Jun, economIsL
at the China Centre for In-
ternational Economic Ex-
changes, a think-tank in
Beijing.
Premier Li Keqiang said
on Monday that economic
growth quickened in the
second quarter from the
previous three months,
but added that further
modest government sup-
port measures will still be
needed. Beijing has set an
annual growth target of
around 7.5 percent.
Reuters
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
16
Myanmar Summary
France Puts Euro Zone Recovery at Risk, Economists Warn
Liz Alderman
A
s Europe struggles
to move past the
worst of its debt
crisis, France has increas-
ingly become a worry point
in the recovery.
The economy has been
hovering too long near
stagnation, economists
warned at an economics
conference in France on
Sunday, saying that unless
the government in Paris
pushed more strenuously
to improve growth along-
side Germany, its perfor-
mance threatened to weigh
on the prospects for a
wider recovery in the euro
zone.
The weakness of France
Is vIsIbIe, BerLrund Budr,
managing director and
cIIeI hnuncIuI omcer oI
LIe WorId Bunk Group In
WusIIngLon, suId In un
interview on the sidelines
of the conference. Its not
that France and Germany
should dominate, he add-
ed, buL II we cun`L hnd u
way together it might be an
issue.
That theme was repeat-
edly invoked during the
three-day meeting by Le
Cercle des conomistes as
top European policy mak-
ers and economists ad-
dressed what has become
the most urgent concern
about Europe: that for
all the steps taken to put
crisis-stricken countries
on a path toward renewed
growth, the recovery is still
unfolding much too slowly.
Christine Lagarde, man-
aging director of the Inter-
national Monetary Fund,
hinted on Sunday that the
funds economic forecasts
for Europe might be cut
amid signs that the growth
potential of numerous
countries was weakening.
The global economy is
gathering speed, though
the pace may be a bit less
than we previously pre-
dicted, Ms. Lagarde told
the conference. She added,
We see un InvesLmenL deI-
icit everywhere.
Investment in Europe
is about 20 percent lower
than it was before the cri-
sis unspooled, while public
investment especially
along Europes southern
rim has been sharply
tightened because of budg-
et constraints, she said.
Two years after Germany
urged European countries
to cut government spend-
ing and raise taxes to mend
national accounts, policy
makers are now discuss-
ing the need for shock-
and-awe public invest-
ment programs, especially
infrastructure projects, to
oseL growLI sIowdowns
that have been deepened
by austerity measures.
There are still post-crisis
probIems In LIe euro zone,
said Jacques Mistral, head
of economic studies at the
French Institute of Inter-
national Relations. There
is a lot less spending today,
so governmenLs Iuve Lo hII
that hole.
According to a recent re-
porL by LIe consuILIng hrm
PwC, Europe will represent
just 10 percent of global in-
frastructure spending by
2025, falling from around
20 percent a few years ago,
wIIIe LIe AsIu-PucIhc re-
gion will represent nearly
60 percent of such spend-
ing.
Like many who gathered
here for the conference,
Mr. Mistral called for bil-
lions of euros in public in-
vestments in energy, the
environment and technol-
ogy and high-speed Inter-
net, where a number of
countries France includ-
ed sorely lag.
France has gotten its Eu-
ropean partners to allow
it to push back a deadline
for reducing its budget
dehcIL Lo percenL oI gross
domestic product, a tar-
get the government now
plans to reach in 2015. The
French president, Fran-
ois Hollande, has called
for exempting investment
spendIng Irom dehcIL hg-
ures as he tries to re-ener-
gIze runce`s economy.
Michel Sapin, the French
hnunce mInIsLer, sLruck
a more reassuring tone
ubouL LIe euro zone`s
second-largest economy,
amid rising concern that
France may be the new
sick man of Europe.
France is a huge econo-
my in Europe, with a large
industrial base and inno-
vation and research, Mr.
Sapin said in an interview.
I dont see how we can be
sick, or at least sick for a
Iong LIme. We ure reucLIng,
were lowering costs and
taxes for companies, and
were working for more
competitiveness.
Still, Ms. Lagarde warned
countries seeking to spend
their way out of a down-
turn not to add to already
high national debts a
problem that has been at
LIe IeurL oI LIe euro zone`s
crisis. If youre not in a
medium-term situation
that assures sustainabili-
ty, she said, you cant un-
dertake major infrastruc-
ture investments.
This has to be done on
a case-by-case basis, she
added. New York Times
A European Commission Hag is pictured on a tabIe before a news conference after their meeting at the
ICRC headquarters in Geneva.
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Lagarde Hints at Global Forecast Cut Even as US Rebounds
Mark Deen and
Francois De Beaupuy
I
nternational Monetary
Fund Managing Direc-
tor Christine Lagarde
signaled a cut in the insti-
tutions global growth fore-
casts, saying investment is
still weak and that risks re-
main in the U.S. even as its
rebound accelerates.
The global economy is
gathering speed, though
the pace may be a bit less
than we previously pre-
dicted because the growth
potential is lower and in-
vestment spending re-
mains lackluster, Lagarde
told the Cercle des Econo-
mistes conference in Aix-
en-Provence, France.
The remarks underline
the threats to global eco-
nomic growth at a time
when the U.S. Federal Re-
serve is trimming stimulus
and the European Central
Bunk Is hgILIng InuLIon
that is less than half its tar-
geted level. The IMF is pre-
paring to update its eco-
nomic forecasts this month
after predicting April 8 that
the global economy will ex-
pand 3.6 percent this year
and 3.9 percent in 2015.
Growth in the U.S., the
worlds largest economy, is
set to accelerate in coming
months and Asias emerg-
ing market economies
will avoid a hard landing,
though the European re-
covery is still not as strong
as it should be, Lagarde
said.
J obless Data
In the U.S. we expect a
sIgnIhcunL rebound, u-
garde said, adding that
risks to U.S. growth include
the ability of the Fed to ta-
per in an orderly manner
and that of the Treasury
to put in place a medium-
term budget framework.
A July 3 Labor Depart-
ment report showed em-
ployers in the U.S. expand-
ed payrolls by 288,000
workers last month, push-
ing down the jobless rate
to 6.1 percent from 6.3 per-
cent in May, a level Fed-
eruI Reserve omcIuIs dIdn`L
expect to see before the
end of the year. Treasuries
decIIned uILer LIe hgures
were released, while the
Dow Jones Industrial Av-
erage (INDU) rose above
1;,ooo Ior LIe hrsL LIme.
ed omcIuIs ure debuL-
ing how long to keep the
benchmark federal funds
ruLe neur zero uILer com-
pleting a bond-buying
program thats set to end
late this year. The Federal
Open Market Committee
repeated on June 18 that it
expects the rate to remain
neur zero Ior u consIder-
able time after the pur-
chases end work.
Fed Chairwoman Ja-
net Yellen said last month
the central bank doesnt
intend to signal any im-
minent change in policy
and that the balance sheet
will remain large for some
The growth opportunities
for healthcare companies
and Market Expansion
Services providers in My-
anmar are encouraging.
According to a study by
Rubicon Strategy Group,
a recognized leader in
market analysis, the My-
anmar healthcare market
is expected to further open
up. Yet challenges like
the abundance of coun-
terfeit products and the
fragmented point of sales
channel however under-
line the need for compa-
nies to work with an ex-
perienced and established
partner in the country.
The market study by Rubicon
Strategy Group provides an
extensive market overview
based on on-the-ground
surveys and interviews with
business leaders, consum-
ers and customers (pharma-
cies, drugstores, hospitals
and doctors). Part of Rubi-
cons Asia Market Series,
it is the frst publication that
uncovers the opportunities
for healthcare companies to
expand to Myanmar.
The country opening up
and the ASEAN Economic
Community becoming real-
ity in 2015 are expected to
spur growth for healthcare
companies and Market Ex-
pansion Services providers
in Myanmar. According to
Rubicons study, consumer
spending on over-the-coun-
ter healthcare products is
anticipated to grow three-to-
four-times in size, from about
USD 140 million in 2013 to
USD 480 million by 2020.
The research further shows
that the medical devices
market in Myanmar is an-
ticipated to grow threefold
by 2020. Meanwhile, eight
out of ten of Myanmars con-
sumers are willing to spend
more on healthcare products
and services if they have ac-
cess to better options.
The strong overall market
growth is partly driven by the
vast increase in government
spending on pharmaceuti-
cals and medical devices.
Specialty products, in par-
ticular cardiovascular, dia-
betes and oncology products
are expected to experience
high growth rates for the next
years.
Challenges to enter the My-
anmar healthcare market
however remain. Compar-
ing the healthcare systems
worldwide, Myanmar was
recently ranked 190th and
last by the World Health
Organization (WHO). Ru-
bicon's study confrms that
collaborating with a local dis-
tribution partner is the only
viable means of effciently
accessing the market in My-
anmar. This is due to My-
anmars opaque regulatory
environment, the abundance
of counterfeit products, com-
plex channels to market and
the extremely fragmented
point of sale network.
Dr. Varun Sethi, DKSHs
General Manager, Business
Unit Healthcare in Myanmar,
said: With the opening of
Asias economy, Myanmar
offers great potential for
healthcare companies. Com-
panies intending to expand
in Myanmar should look for
an experienced partner with
the knowledge and connec-
tions to reach a broad range
of channels and consumers.
With our 15 years of experi-
ence in Myanmar and almost
150 years in Asia, DKSH is
well-positioned to help com-
panies explore the opportu-
nities in Myanmar.
The study results are cap-
tured in the 115-page Myan-
mar healthcare report, which
provides an extensive mar-
ket overview and insights
for healthcare companies
exploring opportunities in
the country. The full report is
available online at
http://www.healthintelasia.
com/asia-healthcare-shop/
myanmar-report-page/
About Rubicon Strategy
Group
Rubicon Strategy Group is
a boutique consulting frm
specialized in market access
work for emerging econo-
mies in the healthcare, bio-
tech and senior care indus-
tries. Rubicon has a focus
on China and has completed
research and market access
projects in the pharmaceuti-
cal, private hospital, senior
housing and home health-
care sectors in China.
About DKSH
DKSH is the leading Market
Expansion Services provider
with a focus on Asia. As the
term Market Expansion Ser-
vicessuggests, DKSH helps
other companies and brands
to grow their business in new
or existing markets.
Publicly listed on the SIX
Swiss Exchange since
March 2012, DKSH is a
global company headquar-
tered in Zurich. With 735
business locations in 35
Fi rst Myanmar heal t hcare market report by Rubi con St rat egy Group and DKSH reveal s
encouragi ng ent ry and growt h opport uni t i es f or heal t hcare compani es i n Myanmar
countries 710 of them in
Asia and 26,700 special-
ized staff, DKSH generated
net sales of CHF 9.6 billion
in 2013.
DKSH Business Unit Health-
care is the leading Market
Expansion Services provider
for healthcare companies
seeking to grow their busi-
ness in Asia. Custom-made
offerings comprise registra-
tion and market entry stud-
ies as well as importation,
customs clearance, market-
ing and sales to physical dis-
tribution, invoicing and cash
collection. Products avail-
able through DKSH Health-
care include ethical pharma-
ceuticals, consumer health,
over-the-counter (OTC), as
well as medical devices. With
150 business locations in 14
countries and around 9,050
specialized staff, Business
Unit Healthcare serves over
160,000 customers and gen-
erated net sales of around
CHF 4.3 billion in 2013.
(Advertorial)
time.
1noestment Depcit
WIIIe LIe key rIsk In LIe
euro ureu remuIns InuLIon
thats too low, Lagarde also
urged caution on public
investment plans as the re-
gions governments study
ways of supporting the re-
covery in the wake of a sov-
ereign debt crisis. French
President Francois Hol-
lande has said that Europe
sIouId use uII exIbIIILy
uvuIIubIe In ILs hscuI ruIes
and consider exempting
investment spending from
dehcILs.
We see un InvesLmenL
dehcIL everywIere, u-
garde said. Yet public poli-
cy must be dictated by debt
sustainability, she said. If
youre not in a medium-
term situation that assures
sustainability, you cant
undertake major infra-
structure investments.
Countries with lower
debt burdens and higher
growth are the ones who
cun uord Lo boosL InvesL-
ment, she said. France has
less need to renew its in-
frastructure than Germa-
ny, the U.K. and the U.S.,
Lagarde, a former French
Finance Minister, added.
This has to be done on
a case by case basis, she
said. Bloomberg
Myanmar Summary
A
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
Myanmar Summary
Krger Foundation Grants $40,000 to Start
Scholarship Program for Burmese Students
May Soe San
S
wI LzerI und-bused
charitable organisa-
tion Krger Founda-
tion announced a $40,000
grant to enable the Univer-
sity of the People (UoPeo-
ple) to establish a scholar-
ship program for Burmese
students.
The grant aims to pro-
vide full scholarships for
ten promising students
in Myanmar to study at a
leading US-based online
university.
The Krger Myanmar
Scholarship Program will
cover the costs of a four-
year bachelors program
in either Business Admin-
istration or Computer Sci-
ence, a statement said.
The purpose is to help
meet the demand for op-
portunities for motivated
Burmese students as well
as for higher skills in the
local economy.
Ten Burmese students
will be provided with the
opportunity to access ed-
ucation, and to graduate
with a bachelors degree
in the program of their
choice, beginning in Sep-
tember 2014.
Interested applicants
can apply for scholarship
support upon admission
to the University of the
People and before they
commence their classes.
Our support for Uni-
versity of the People is
meant to leverage the
power of online learning
by establishing a dedicat-
ed scholarship program
for improving access to
education in Myanmar,
said Christian Krger,
founder of the Krger
Foundation.
The hope is that some
of these students will
also be inspired and ad-
equately educated to fur-
ther assist with the rede-
velopment and economic
prosperity of their com-
munities, Krger, who is
also an impact investor,
said at the Impact Econ-
omy Symposium and Re-
treat last month.
Myanmar was one of
the four focus countries
at this years Impact
Economy SymposIum &
Retreat, which took place
from June 13-15 in Swit-
zerIund.
Dr Maximilian Martin,
the organiser of the event
and founder and global
managing director of Im-
pact Economy, identi-
hed LIe EMCs IncIudIng
Myanmar as countries
with exceptional potential
for inclusive growth and
modernisation.
The EMICs include
Ethiopia, Iran, and Co-
lombia in addition to My-
anmar, and represent a
group of high-stakes cata-
lytic countries.
In one of our sessions
at the symposium that
was dedicated to Myan-
mar, the importance of
education and access to it
for all members of society
wus uguIn empIusIzed us
a key to success in sus-
tainable modernisation.
Impact Economy is de-
lighted to see the Krger
Foundation addressing
this need, said Martin.
At a time when Myan-
mars enthusiasm to catch
up with its neighbours is
at an all-time high, the
country needs to over-
come a number of con-
straints that are standing
in the way of a sustainable
middle-income future.
Building more domestic
human capital will help
lay the needed foundation
in Myanmar, Martin said.
College and univer-
sity students everywhere
ure IncreusIngIy hndIng
themselves with addi-
tional obligations beyond
just studying for a de-
gree, IncIudIng hnuncIuI
independence and family
commitments.
UoPeople is an accredit-
ed degree-granting online
university that provides
tertiary education courses
for students in 143 coun-
tries.
We ure LIrIIIed Lo purL-
ner with the Krger Foun-
dation in order to sponsor
a group of Burmese stu-
dents towards their bach-
elors degrees at Univer-
sity of the People, said
Shai Reshef, founder and
president of UoPeople.
We Iope LIuL oLIers
will follow the example
set by the Krger Foun-
dation and join us in our
mission to democratise
higher education across
the globe, said Reshef.
In making this grant,
Krger Foundation ex-
punds ILs eorL Lo provIde
access to opportunity for
youth in Asia, a footprint
that will now include My-
anmar.
Freshmen students attend a chemistry class in Yangon University.
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
Myanmar Summary
David Mayes
I
nuLIon Is unIorLu-
nately an ugly real-
ity we all have to deal
with. Prices will realisti-
cally most likely keep go-
ing up every year until
the day that we die, the
only thing that will likely
change from time to time
is how quickly they are
rising.
So what is the most
practical to safeguard the
purchasing power of the
money you have worked
so hard to earn? As al-
ways, there is no one fool
proof way to address the
issue, but several strat-
egies you can take and
each one has its own set
of risks.
Property is gener-
ally one of the best bets
uguInsL InuLIon. Over LIe
long run, property will in
fact usually make a posi-
tive return above and be-
yond InuLIon. However,
there still exists timing is-
sues and other risks which
can never be 100 percent
avoided. Take for instance
Yangon commercial prop-
erty at the moment. It has
risen so fast, and there are
so many projects under
way, that one must won-
der if today is a good time
to buy in or if the gains
form the expected boom
are already priced in.
Of course only time will
How to Protect YoorselI Irom Inution
tell, but for me it is one
oI LIe mosL dImcuIL reuI
estate markets to get my
head around. In some
markets foreigners can-
not legally own land, so
the loopholes one must
jump through add anoth-
er layer of risk.
The stock market is also
said to keep pace with in-
uLIon, und uguIn wIIIe
this is generally true, tim-
ing is always a huge fac-
tor involved in whether
or not your investments
actually do. One could
make a strong argument
LIuL LIe expecLed Inu-
tion is already priced in at
the moment, and in fact
LIe emcIenL murkeLs Iy-
pothesis taught in every
hnunce progrum wouId
say that this is the case.
I am not a big fan of that
theory in most instances,
but at the moment I think
this may be the case.
If real estate and the
stock market cannot be
guaranteed to keep you
uIeud oI InuLIon, wIuL
about bonds? Here I see
at the moment one of the
few ways that you can be
pretty sure you will beat
InuLIon, buL sudIy IL wIII
not be by much. The oth-
er thing is that you need
to buy individual bonds,
preferably by companies
with top credit ratings,
and make sure you can
hold them to maturity.
A bond fund, as I have
written about many times,
stands to lose when inter-
est rates eventually break
free and begin to rise.
Commodities typically
do weII In un InuLIonury
environment as well, but
these can fall victim to
the same boom and bust
cycle that every other as-
set class goes through as
well. As I wrote about last
week, I do put gold into a
portfolio most of the time
but am very aware that
the downside potential
at the moment could be
similar to that of the stock
market.
As is usually the case
with investing, the best
way to try and stay ahead
oI InuLIon Is Lo dIversIIy
across asset classes. The
risks involved with each
type of investment will not
usuuIIy be reuIIzed sImuI-
LuneousIy, so oversIzed
gains in one area should
IeIp Lo oseL uny LroubIes
in another part of a well-
dIversIhed neL worLI. n-
uLIon wIII never go uwuy,
and we most likely will see
some periods in the com-
ing decades where prices
rise very rapidly. If your
assets are spread around
you can be sure that some
of them will catch this up-
lift and protect your over-
all purchasing power.
David Mayes MBA
provides wealth man-
agement services to ex-
patriates throughout
Southeast Asia, focusing
on UK Pension Trans-
fers. He can be reached
at david.m@faramond.
com. Faramond UK is
regulated by the FCA and
provides advice on pen-
sions and taxation.
R
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Myanmar Summary
From page 9...
From page 9...
MIC Not Dissolved, Just Moving to Yangon
Htun Htun Minn
T
he Myanmar Invest-
ment Commission
(MIC) has not been
dIssoIved by u noLIhcu-
tion from the Presidents
Omce us wus ruIsed In cer-
tain local media reports.
Local media recently re-
ported that according to
LIe PresIdenL`s Omce un-
nouncement No 41/2014
dated June 27 the Presi-
dent has dissolved the
commission despite its
recent revamp.
There has merely been
an internal housekeeping
measure to regularise ap-
pointments of the current
members, locally-based
Iuw und Lux udvIsory hrm
VDB oI LoId In u brIehng.
TIe Iuw hrm suId LIe My-
anmar Investment Com-
mission (MIC) moved from
Nay Pyi Taw to Yangon on
July 9 in a measure to im-
prove access to the central
body which approves for-
eign investment.
EecLIveIy, LIere Is no
change of the function
and composition of the
MIC. The MIC is operat-
ing as normal, although
clearly some packing and
unpacking will need to be
done, VDB Loi, which
worked closely with MIC
In u sIgnIhcunL number oI
projects, said.
Regardless of all the
Picture by VDB Loi shows furniture of MIC ready to be loaded in lor-
ries on July 9.
V
D
B

L
o
i
_ .,.: q .. ._. . . . .~: .q
(MIC) ._ _._~..~.
.:.~ ._~:.~ .e:_.:.
hassle, the MIC worked all
through the day without
missing a beat. At the MIC
meeting today, a number
of oil and gas projects were
for example processed,
LIe Iuw hrm suId.
The MIC will keep a
presence in Nay Pyi Taw
as well, it added.
The so-called Project As-
sessment Meetings, which
are key meetings in the
process, will take place in
the capital and in Yangon,
depending on the case.
.~. ..~,.. ._ ~_:.:
~_.,_ e~..._....~q
_...q._~:. .q._.
..~, .- ~,. q~.,
q~..| ._~_:.:_e MIC
~:. ..~~ e~....~
._~: . _._ ~ ..~ ._:,
~.~ ._~:....~ ~_..
._.
.~: .q q .~ q ~e ~ .~
.,~..~ ~q:.~_e...e
~e ~~ . . . , , ._ _~. .~ .
.~ _...,.|.''e _._~.
~._..~.... ~.,.q:
~~..~e VDB Loi ~
~_.,.._.
MIC ._ .,_._.~:.
q,~,. ~.. q~.,
~ ._.: ..q . _. ._e. _.. _._ .
q..._.....:.~ ._ ...:
q, ~ , q . .~e ~._ .. . _
. ~ .~ ..: q ~ . ..q,
._.: ..q . _. ._e. ._ . MIC
._ .,_ ._ .~: ~ ._ .
.~ . .q., ..~ .~ e . .
:.q.:..__e.._.
MIC q ..,...:q~.
, e ._.. . :.~: :. ~._.: .
~. .q .| . . . , ~~ ..
.~ .~._.~.:..:_e..|
~e..._..~ ...~: _.,
_e_~~:.~:..q~:..|''
e ~~..~e~ .._.
jrm ogerin c hihl per-
sonalised service to its cli-
ents. Strohal Legal Group
enjoys a well established
reputation across Europe,
Southeast Asia and the
Middle East / GCC region
with a strong focus on in-
ternational and cross bor-
der business.
In Myanmar, Strohal Le-
gal Group is providing their
services in partnership with
U Min Sein under the name
U Min Sein & Strohal Asso-
ciates Law Firm.
~~~ .~..~.: ..'.:
~~,~~~ _e.._.
~.~.:.._ q..._....
. ~ . ~ .:. , _~:.. .. ._:,
(DICA) -._..~.|..~
qe ._ _e. _. . |.. . ~. _~ .
.~ ~. .~ .q._ _ e. ._ .
_ ., .:q .. ._. . . . .~: .q
(MIC) ~ ..,.~..~.:.
~. ~ ~, . . .~q .~. .
.~..~~ .~.~._.
_., .:. ~ ~ . ~ ..~ .
~. ..:.. . ~ , .. . .. :..q.
e_e.~.~~.q.~,_~._:,.
~ , . e . .|.. ~ ..:~ :.
q.__e._.. ~.~.~.~.q.
_:,_ .~.~q,..:~:.
q._ _ e. ._ . ~.:.~:._ e
~ , . e .q.. . , .. .:.~
_.,.:..:..:..: ..~
.q._e ~, .~:.._
~~ ~ . . :..q.. . , ..:.._
MCA .~:~~ ~~~ q:.
. , .. . ..: _._ ~ .~ . ~
~ ~_.:_~_.. _._~.
.~. ., _e,_e..~_e.
..:q~.._.
~_~.~ ._.:.q...
_.....:.~~~ e...:.
_...q._~:. ~.~.:.~.,
_e .~_.q.__e.._..q:
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~.....,..:. ~_.:
q, ...~ ._.:.._.
~, ..: . . . , .. : ~, .~
:...:~_~ ..|._
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~q MIC ~ ._.:...:
. . , .~_ e. ~_ .: q,
~..~~_~_..|._...,.
.:.~.,_e ~.,~..~.
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|...~ qe._.. _.,._
q .. ._. . . ..:~_.~ .:.~~ ~
~...~~. ~.,~..~
.. ~..:..:..:~_.~.
_._.. _.,...: ~_.~.
.:.~~~ ~ q:..,. ~.,
~..~.qq.__e.._.
July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
Myanmar Summary
How oes One Get OH
The US Sanction List?
Andrew Tan
B
ased on the discus-
sion that I had with
a US Embassy of-
hcIuI In Yungon on LIeIr
recent activity in inviting
Myanmar people on the
OFAC SDN List for a dis-
cussion on what they can
do to remove themselves
from the SDN List the
following is a synopsis of
my understanding of the
process for removal.
If your name appears
on LIe US Treusury Omce
of Foreign Assets Control
(OFAC)s Specially Des-
ignated National (SDN)
List that means that you
are engaged in activities
that are considered detri-
mental to the US national
security interest.
The OFAC objective of
putting a person on the
SDN List is to cripple his
or her ability to do busi-
ness internationally and
to be engaged in activi-
ties that are damaging to
the US. The restrictions
IncIude u Ireeze on uII US
assets held by the individ-
ual; denial of access to the
US hnuncIuI sysLem I.e.
you cannot remit money
in US Dollars via the in-
ternational banking sys-
Lem; und US cILIzens und
corporations will not be
able to do business with
you.
The OFAC SDN List is
an administrative matter
and not a criminal matter
so there is no point peti-
tioning to the US State
Department or the Justice
Department. The depart-
ment that you need to
convince is OFAC itself
and no one else.
WIuL Is ImporLunL In geL-
ting yourself removed from
the SDN List is to provide
evidence from neutral
third parties that show that
whatever allegations that
OFAC have collected about
you that put you on the
SDN List is refuted con-
vincingly.
For example, evidence
that you are not involved
in business with others
who are on the SDN List
like North Korea, Iran,
Syria, among others; you
are not involved in illegal
activities such as arms
LrumckIng, nurcoLIcs, Iu-
mun LrumckIng und Iu-
man right abuses that
support terrorist network
overseas, nuclear prolif-
eration or infringe on ba-
sic human rights.
The Myanmar tycoons
on the SDN list need to ad-
dress allegations against
them such as dealings
with the Myanmar mili-
tary, land grabs, human
right abuses, and show
what they and the organi-
sations that they control
have done to support po-
litical and economic re-
form in Myanmar.
Take note that it may
take six to nine months
to get removed from the
SDN List from the date
oI hIIng u RequesL Ior
Reconsideration with
OFAC.
Hiring an international
Iuw hrm LIuL Ius experI-
ence getting people re-
moved from the SDN
List and understand how
OFAC works is an impor-
LunL hrsL sLep.
If you believe that you
are truly innocent of all
allegations that OFAC
has against you then pre-
sent your evidence and
convince them that they
ought to remove your
name from the SDN List.
It is not impossible to
geL your nume o LIe
SDN List it is just time
consuming.
Andrew Tan is the Man-
aging Director of Con-
sult-Myanmar Co Ltd.
Consult-Myanmar is a
Yangon-based Singapore-
an-owned company that
is incorporated in Myan-
mar. Consult-Myanmar
provides business advisory,
business partner search,
company incorporation
and immigration service to
foreign investors that are
interested to start a busi-
ness in Myanmar.
Local private businessmen attend the president and local private businessmen meeting in Yangon.
U
A
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in
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q....~ ~,.~:......
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(OFAC) -~ ..~ . ~ :.
..: ..:. (SDN) .:q.
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~ _~:_. ._~: ..~ _.q._.
July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
South Korean Law Firm Yulchon Opens
Myunmur Omce
Aye Myat
S
outh Korea-based
Yulchon LLC has
opened its doors in
Yangon to capitalise on
an increasing amount of
investment from Korean
companies into Myan-
mar.
YuIcIon suId LIe omce
will assist Korean com-
panies on their invest-
ments and transactions in
Myanmar, a lucrative op-
tion for Korean investors
as the new quasi-civilian
government continues its
rapid reforms.
OmcIuI sLuLIsLIcs sIow
South Korean investment
in Myanmar amounted to
$2.98 billion in 77 pro-
jects as of March 2013.
Partners Eric Eungyong
Yang and Yong Geun Bae,
who are based in Seoul
and Hanoi respectively,
ure IeudIng LIe omce
alongside two foreign at-
torneys and an external
consultant who are based
in Yangon.
Myanmar Summary
FATF Keeps Myanmar on Money Laundering Watchlist
Global Financial Watchdog whittles down its country watchlist for money laundering
Stella Dawson
T
he Financial Action
Task Force (FATF),
an international
money laundering watch-
dog, has removed 10
countries from its money-
laundering and terrorist
hnuncIng wuLcIIIsL buL
Indonesia, Myanmar, Ec-
uador and Algeria remain
on the list and under
scrutiny.
Iran and North Ko-
rea continue to head the
FATFs blacklist of coun-
tries at high risk of sup-
porLIng IIIeguI hnuncIuI
activities.
But in its mid-year re-
view, FATF said Ethio-
pia, Pakistan, Syria,
Turkey and Yemen im-
proved their compliance
with global standards for
counLer-LerrorIsL hnunc-
ing and anti-money laun-
dering regulations, hence
were removed.
Additionally Kenya,
TunzunIu, NepuI, Kyr-
gyzsLun und MongoIIu
have substantially im-
proved and are no longer
subject to close monitor-
ing by FATF. Previously
LIey Iud been ugged Ior
not fully implementing
their action plans, though
by February this year had
already made progress.
The update makes for
the shortest watchlist in
recent years for the task
force, which was found-
ed in 1989 by the Group
of Seven most powerful
industrialised nations
und composed oI hnunce
mInIsLry omcIuIs Lo ud-
dress LIe gIobuI hnuncIuI
crimes.
It has developed 49 rec-
ommendations that it ex-
pects countries to adopt for
regulating banks and other
hnuncIuI InsLILuLIons Lo
A labourer walks by a port in Yangon.
combat money laundering
und LerrorIsL hnuncIng. L
meets several times a year
to evaluate progress.
WIen counLrIes ure
ugged by AT Ior
shortfalls, international
banks scrutinise custom-
ers und money ows Irom
those countries for suspi-
cIous ucLIvILIes und hIe re-
ports with their national
authorities.Thomson Re-
uters Foundation
TIe Yungon omce wIII
play a role as an advanced
base for entry of Korean
businesses in Myanmar,
said Yang in a statement.
We ure expecLIng
shared growth with Ko-
rean businesses that will
be entering Myanmar
through this positioning.
The new establishment
in Yangon is Yulchons
IourLI omce ouLsIde Ko-
rea. After opening an of-
hce In Ho CII MInI CILy In
zoo;, LIe hrm IuuncIed
un omce In HunoI In zo1o
and in Beijing in 2011.
The liberalisation of
Myanmars economy has
Iured u IosL oI Iuw hrms
to set up shop in Yangon
this year, including in-
LernuLIonuI hrms Buker
& McKenzIe und AIIen &
Overy, Singaporean law
hrms AIIen & GIedIIII und
WongPurLnersIIp, und
Jupun`s MorI Humudu &
Matsumoto.
Myanmar Summary
M
in
z
a
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t
e
r
s
.~: ~ q . e:. ~._ .. ~
Yulchon LLC ~.~._
_., .:. ~ , .., .e . . . ~
_.. _., .:. . ~ ._. ~ .q:~
.:..: ~q.e:.q..._....
.:.. ~~.~_.~.:.qe.
q, _~.....:..__e.._~:.
.q._.
Yulchon ._ ~.q.e:.
~ . ~ .:.-q .. ._. . . . .:..
. ~. ~._.: ..:.~ . . .~ _
.... :.._ _e. ._ .~q:.~
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. - _., .:. ~ q .. ._. . .
...:~.: ~~, .~.~
..'.: ... q _. . ~ , .
.~ _.._...:.
._~:. .q._.
. ~~:. ._ ~..~| . .
..: _~_ .q.~e (FATF) ._
, .~ -. ._~..~|.. . ~_~. .
e~..:..:.~:. .:~..
.:..:q.. . ~~ .~ ee
~ . ~ ..: ._ . ~ . , .q :.
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.,_. . ..: _~_ . q.~ q ._ .
FATF - ~q:..~.._~.
....:.~.:.~ ......
.,._ ~._.~.:q.~
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q ._ . , .~ -. . .~ ._
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.,.._~:. .q._.
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e .. . , .~e -..: _~_
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Myanmar Summary
68 Residence to Inspire New Standard of
Luxury Living in Yangon
Aundrea Montao
I
n 2017, Yangon will
welcome the citys
newest luxury high-
rise condominium com-
plex, 68 Residence, which
will be located in Bahan
township at the corner of
Kabar Aye Pagoda and Sa-
yar San roads.
We Dehne IIesLyIe
is the promise made by
United GP Development,
a Myanmar real estate
development company
founded by Dr Aung Kyaw
WIn - uIso LIe Iounder oI
the well-known Golden
PuIuce GoId & JeweIry
Business Group.
Dr Aung Kyuw WIn hrsL
started in business in the
gem and jewellery indus-
Lry. WILI un enLrepre-
neurial drive, and solid
commitment to customer
service and quality stand-
ards, he established Gold-
en PuIuce GoId & JeweI-
lery as a market leader in
Myanmars gem industry.
Because the gold and
jewellery business is
based on trust and we
must provide customers
with excellent product,
service, and after ser-
vice we know the value
of strong client relation-
ships, he said.
It is with these same val-
ues he decided to diversi-
fy his business to include
real estate development.
Our commitment to
quality, service and prod-
uct will be applied to how
we treat our clients at
68 Residence, Dr Aung
Kyuw WIn LoId Myanmar
Business Today in an in-
terview.
Dr Aung Kyuw WIn suId
he decided to enter into
the real estate market as
a means to support the
countrys infrastructure
deveIopmenL eorLs.
If any country is start-
ing to develop, infrastruc-
ture must be the most im-
portant area to develop.
68 Residence, a 27-sto-
rey condominium build-
ing, will boast 369 apart-
ment homes promising
to distinguish themselves
from any other luxury
high rise through un-
matched quality and cus-
tomer service.
TIe hrm suId LIe prop-
erty will be built to inter-
national standards and
include premium features
such as a home automa-
tion system controlled by
wIreIess devIces, hne dIn-
Ing, un InhnILy pooI, und u
sky garden with views of
Shwedagon Pagoda and
Inya Lake.
Among the propertys
elegance and functional-
ity, a feature that sets it
apart is the commitment
to safety. Dr Aung Kyaw
WIn suId 68 ResIdence
will exceed standard
Myanmar building codes
by including an integrated
hre uIurm und sprInkIer
system in each apartment
home and throughout the
property.
WILI buIIdIng codes und
enforcement yet to catch
up to international stand-
ards, only a few select
buildings and hotels in
Myanmar have such a safe-
ty mechanism. Enhanced
security features, such as
hnger prInL IdenLIhcuLIon
technology, will secure
each apartment and the
property, he added.
Additional safety pro-
tocols include the use of
imported building mate-
rials that meet interna-
tional standards and the
use of expert developers
and designers that will
work alongside Myanmar
companies to build the
property while working to
build capacity and skills
in the domestic business-
es and the population.
The development of 68
Residence is a partner-
ship between United GP
Development and Singa-
pore-based CaptiaLand
Limited. Building will be-
gin in September and is
expected to cost approxi-
mately $150 million. The
properLy wIII LurgeL umu-
ent Myanmar diaspora
and international inves-
tors.
WIIIe purL oI LIe LurgeL
market is international
investors, their ability to
invest in residential prop-
erty will depend upon the
passing of the Condomin-
ium Law and its rules that
will determine an inter-
national investors ability
to purchase a home. In its
current form, the Condo
Law would allow foreign
investors to purchase a
condo on LIe 6LI oor
and above, but limits the
amount of foreign buyers
to 40 percent in a single
building.
In June, the draft was
sent back to the govern-
ment due to concerns
In LIe dehnILIon oI LIe
term condo, in addition
to many other potential
problems. There is no
word on when a second
draft will be submitted to
parliament for debate and
no expected time frame as
to when the law might be
passed. The passing of the
Condo Law is expected to
Iuve sIgnIhcunL ImpucL
on luxury condo market.
Other issues revolve
around the sustainability
of the property market,
which some believe is an
expanding bubble in im-
minent threat of popping.
Urgent demand has sent
prices skyrocketing and
has put pressure on buy-
ers and renters that are
now reaching their limits.
However, the luxury
condominium niche is ex-
pecLed Lo perIorm dIer-
ently. Price is a main fac-
tor for the average buyer,
but the luxury homebuyer
is more concerned with
long-term investment,
making the prospects for
Myanmars development
and continued prosperity
more important than the
immediate sticker shock.
Dr Aung Kyuw WIn suId
he is optimistic about
the future of the Myan-
mar economy and the
prospects for future real
estate development.
~~ ~ q,~,_ ~..
.~.~ ~..~._.~,.
. , e ~..:~ ~~ ..'..|~
.:.__e._.. e..: '
Residence e ~._q~:
-e,._.,e~~. ~.:.~.
q:..... .q:.....:
~ ~_q.__e.._.
United GP ~._.._.~_
..:~.q...,.~ .~:.
~._..~ Captial Land .
....|._ e.~,.~ ~_
.:.~q ~: ,:._.~:
Golden Palace .~:~.~
q~,:. . , .~ ._ . . . .
_e.._ United GP ..,.
~_ .: . ..|~ ~:.~:
.~: ~ .~ .~:~ .~ . . , .
~ ~e..:.~:. _e_._.
....._ ~.~:...~q_
~.. . ~, ..: . .:.~ ~ . _.
._...,.~._. _e_._.
.... :.._ _ e. ._ ~: . ._ .:
_~:.._.
68 Residence ._ ~.
._._ .~~:~q_
~....~_ ~_.e:~._
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.:...:~..:. .q~.~,
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.:..__e.._. ~.~_.
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..~.~....,.. .qe,..~
.:.~ ~..:~~~~....
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~..:~ ~~ . . . :. ~
.:. , ._~: . ..|~ ~:.~:
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.,:~.._..q...,..
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..:~ . . .q... _ ..:.. ..
:._... _._.. ..:~..
.q.._:q . :. . ~ ,:. :.
~. ._.:._. .~ .|~ ~: e .
._:q.:.._ _.,.:~.~
.:.. ....|...~.__e.
_.. _._~.~ ~q_~...
_.~.q.. ~..~.~_
..:~.q.~~._. ~_
....:..__e.._.
e.~,.- ...~~.~_
.~~..~~....: _._..
q..._.....:._e...:._.
..:. q..._....q,.:
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.:..:. ~.~ee..~..'
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.~_.,._. .~q ...
. . ~ . _.:..:..:.~ ' . :
. ~~~.,..:. ~ee
. _ . :._ . . ~..:~ ~~
~. . ~ . _.:..:.~e e
. . ~:. ,~ q:. . , ..: . _.
:.._ .~ , .~~ .~ e .
..._~..~:. ~..q_..
...q, _.,....:._.. ._
._ ~. , ~ . ~ e. _ ~. .
~.:._~ ..q......
~ . _. ._....~ ~ . : ..|~ ~
. , ., .. .e: ._~ ._e. .,._ e
~.~ ...:._.. e....
~ ~ ~_ _. .q.. .~ .~ _
_..,:.:.q..:._. ~..
~ , . .. .~ ~ . :. ~ _ .:.. :
._.~._e ., .,.:._~
._...,~e.~..~e ...
.: ~.~ _..,:_e...:._.
~..~.~e..:..: .qq_
q .. ._. . . . ~ .:~:, . ~ ..:
._~: _.,.:.- e_e...
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.: ._~.q..|._.
Dr Aung Kyaw Win speaks during an interview with Myanmar Business Today.
W
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
24
Myanmar Summary
PROPERTY & REAL ESTATE
Chinese Realtors Tout Chengdu Apartments in Myanmar
M
yanmar busi-
nesspeople re-
cently met with
Chinese real estate bro-
kers from Luxe Real Es-
tate Agency who were
promoting Neptune Cen-
tre Apartments in China.
The meeting exhibited
the apartments that are
located in Chengdu, the
provincial capital of Si-
chuan province in South-
west China.
One unit is currently
selling for $150,000
(K147 million).
Calvin Chao from the
real estate agency said
his companys sale pro-
motion hoped to improve
business relations be-
tween industry leaders
from Myanmar and China
travelling in and out of
the two countries.
The city has strong le-
gal protection for people
investing and the country
is stable. If people want to
buy an apartment, well
May Soe San
make a contract so that
they are insured before
meeting directly with the
seller, Calvin said.
Chengdu is one of many
Chinese cities experienc-
ing rapid growth with the
countrys booming eco-
nomic expansion over the
last decade.
Over 252 of the worlds
top companies operate in
Chengdu.
Calvin Chao said the
citys development has
helped improve the real
estate prospects of the
area.
The Chinese govern-
ment is expanding infra-
structure in Chengdu in
order to establish the area
as an economic hotspot.
A businessperson who
attended the conference
said if the city can main-
tain its growth momen-
tum, then investment
interest will continue to
increase.
The main thing is that
they really need to have
strong legal protection.
If there are frequent law
changes, it wont be easy
for the buyers, he said.
Dubai Says Launching Project
to Build Worlds Biggest Mall
D
ubai is launching
a project to build
an entertainment
and hotel district that will
include the worlds larg-
est shopping mall, the
emirates ruler, Sheikh
Mohammed bin Rashid
al-Maktoum, said.
Plans for the Mall of
LIe WorId projecL were
originally revealed 18
months ago, helping to
trigger a strong rally in
Dubais real estate and
stock markets.
The announcement ap-
peared to indicate that
substantial work on the
project would now begin,
though the statement did
not say when construc-
tion would be completed,
how much it would cost or
Iow IL wouId be hnunced.
The project will be built
in phases in alignment
with the gradual growth of
family tourism in Dubai,
said Mohammed Abdul-
lah al-Gergawi, chairman
of Dubai Holding, which
Andrew Torchia is Sheikh Mohammeds
personal investment ve-
hicle and will develop the
project.
The latest version of the
plans includes construc-
tion of an 8 million square
foot (743,000 square me-
tre) mall, connected to
a theme park, theatres,
medical tourism facilities
and 100 hotels and ser-
viced apartment buildings
with 20,000 rooms.
The complex would be
able to host 180 million
visitors annually. Seven
kilometres (4.4 miles) of
promenades connecting
the facilities would be
opened to the air during
the winter but covered
and air-conditioned dur-
ing the hot Gulf summer.
Dubai is still recover-
ing from its 2009 debt
crisis and the Interna-
tional Monetary Fund has
warned a slew of new real
estate projects could lead
to another boom-bust cy-
cIe. BuL omcIuIs suy LIey
are able to handle the
risks, and a strong econ-
Thailands Dusit Eyes
Myanmar Property Market
B
angkok-based hotel
and resort company
Dusit International
is planning to grab a share
of Myanmars booming
property market through
the opening of dusitD2
Residence in Yangon.
The hospitality com-
pany has more than 10
properties under plan-
ning and development in
Myanmar, according to
Thai media reports.
The hospitality com-
pany is planning to take
advantage of Myanmars
opening up, which has
resulted into a property
boom in the Southeast
Asian country.
This year, the country
targets a sharp increase
to 3 million arrivals from
2.04 million last year.
Yangon International Air-
port, the countrys main
gateway, recorded more
than 500,000 travellers
In LIe hrsL IuII oI LIe yeur.
The hotel and serviced
apartment project, which
is a joint investment with
u Jupunese hrm, wIII Lur-
get long-stay guests and
corporations with busi-
Aye Myat nesses in the city, supple-
mented by holidaymak-
ers.
Some multinational
companies have opened
omces In LIe counLry, buL
there is a dearth of hotels
and serviced apartments
to house their executives.
According to Myan-
mars Hotels and Tourism
Ministry, there are 1,000
hotels with 38,722 rooms,
of which only six hotels
ure hve-sLur. TIe resL
comprise 17 four-star, 83
three-star, 116 two-star
and 102 one-star hotels,
along with 599 ministry-
approved hotels, motels
and inns.
Established six decades
ago, Dusit International
now runs 21 properties
in countries including the
United Arab Emirates,
Egypt, China, India and
the Philippines.
They come under four
major hotel and resort
brands Dusit Thani,
Dusit Devarana, dusitD2
and Dusit Princess.
Myanmar Summary
Myanmar Summary
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omy is helping Dubais
governmenL-IInked hrms
restructure their debt.
Reuters
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
Mitsubishi, Yoma to Sell Bridgestone Tyres in Myanmar
Tom Stayner
M
itsubishi Corp
(MC) has en-
tered Myan-
mars tyre market through
a new joint venture com-
pany with property and
ugrIcuILure hrm Yomu
Strategic Holdings Ltd.
First Japan Tyre Com-
pany Limited (FJTS) will
provide Bridgestone tyres
in Myanmar with sales
support to help the local
tire sector keep up with
the countrys growing car
servicing demand, the
hrm suId.
MC entered into an
agreement with Myan-
mar Motors Pte Ltd to es-
tablish the joint venture.
It will hold 70 percent
share, while 30 percent
will be held by Myanmar
Motors Pte Ltd.
Myanmar Motors is a
subsidiary of Yoma Stra-
tegic Holdings Ltd and
First Myanmar Invest-
ment Co Ltd, which are
part of the local conglom-
eruLe Serge Pun & AssocI-
ates (Myanmar) Ltd.
MC and SPA Group
signed a deal in October
last year to jointly explore
business opportunities in
Myanmar, including au-
tomotive service and ele-
vator-related businesses.
The Japanese conglom-
erate said its decision to
enter the tire business
in Myanmar is based on
the projection that de-
mand for tyres will grow
in keeping with growth
in the automotive market
and that its business en-
deavours will contribute
to the improvement of in-
frastructure.
MC and Bridgestone,
the worlds top tyre mak-
er by market share, al-
ready have a series of tyre
manufacturing and sales
joint ventures in South-
east Asia, particularly in
Thailand, Vietnam and
Malaysia.
TIe hrm suId LIe new
venture will draw on the
know-how that MC has
accumulated in the indus-
try to provide sales and
marketing support to SPA
Groups distributors that
meets the needs of the
local market and expand
the sales of Bridgestone
tyres mainly for passen-
ger cars, trucks and buses
in Myanmar.
Myanmar Summary
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Daimler Expects Sales to Surpass Audi,
BMW in China This Year
Maria Sheahan
G
erman carmaker
Daimler expects
ILs Mercedes-Benz
brand to overtake rivals
AudI und BMW by num-
ber of cars sold in China
this year as its new strat-
egy for the worlds biggest
car market starts to bear
fruit, a board member
told a newspaper.
WILI LIe new S-CIuss
model, we will overtake
our competitors again.
And 2015 will be even bet-
ter, Frankfurter Allge-
meine Zeitung quoted
Hubertus Troska, man-
agement board member
in charge of Daimlers
business in China, as say-
ing in an excerpt from its
Monday edition.
Mercedes-Benz`s prevI-
ously strong momentum
in China where demand
for luxury cars is fore-
cast to surpass that of the
United States by 2020
stalled in 2012, with sales
volume falling far behind
BMW und AudI.
It presented a strategy
in August that included
plans to launch around
20 new or upgraded car
models in China over two
years as it seeks to boost
suIes oI Mercedes-Benz
cars in China by a third to
more than 300,000 cars a
year by 2015.
Troska told Frankfurter
Allgemeine he was tak-
ing a very, very positive
stance on the companys
prospects in China.
We ure IeurnIng Lo un-
derstand China better and
using that in our product
deveIopmenL. We were u
bit behind in that area,
he said.
The company will open
a new design studio in Be-
ijing this summer, while
shutting another in To-
kyo, and will double the
number of engineers it
employs in China over the
next two years, from 230
currently, he said.
He also said Daimler
now saw the launch of the
DENZA electric car, a lo-
cal Chinese brand jointly
developed with Chinese
partner BYD, at the end of
2014, compared with pre-
vious plans for Septem-
ber. Reuters
Myanmar Summary
:.,~:.~.~ Daimler
- ~,~....~~~~~
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s
July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
26
Myanmar Summary
AUTOMOBILE
Wallenius Wilhelmsen Moves into
Myanmar Car Logistics Sector
Aung Phyo
N
orway-based ship-
ping company
WuIIenIus WII-
IeImsen ogIsLIcs (WW)
is to open up in Myanmar
with a joint venture to im-
port automobiles from Ja-
pun, LIe hrm suId.
WW Is IormIng u joInL
venture with Myanmars
Carrier King Logistics tar-
geting growing demand
for new automobiles that
Ius Luken o sInce InLer-
national sanctions were
lifted.
Myanmar tradition-
ally had a very limited
automobile market, and
still today the majority of
cars sold in Myanmar are
second-hand vehicles im-
ported from Japan, said
Trond Tonjum, head of
WW SouLIeusL AsIu.
They arrive at the ports
and are then jockey driv-
en by individual drivers
from the ports to wherev-
er they are sold or own-
ers or dealers come to the
port themselves to pick
up the vehicles.
As new cars are start-
ing to enter the coun-
try, a professional and
safe transport solution is
clearly needed.
The joint venture will
provide new car-carrying
trucks and trailers for
transportation from port
to dealerships.
WW Is one oI LIe worId`s
largest companies in the
transporting of rolling
equipment; automobiles,
heavy machinery, yachts,
trains and power stations.
WILI revenues over $z.
billion it has 3,300 em-
ployees worldwide.
Myanmar Summary
W
M
C
Car Maker Tesla Sued in China for
Trademark Infringement
Samuel Shen and
Adam Jourdan
U
S electric car
maker Tesla Mo-
tors Inc is being
sued in China for trade-
mark infringement, a sur-
prise development that
casts a shadow over CEO
Elon Musks ambition
to expand rapidly in the
worlds biggest auto mar-
ket.
Tesla said in January
that the trademark dis-
pute between it and Chi-
nese businessman Zhan
Baosheng long seen by
analysts as a barrier to
Teslas entry into China
had been resolved. The
car maker began deliver-
ing its Model S sedans
to Chinese customers in
April.
But Zhan, who regis-
tered the Tesla trade-
mark before the US com-
pany came to China, is
now taking Tesla to court,
demanding that it stop
all sales and marketing
activities in China, shut
down showrooms and su-
percharging facilities and
pay him 23.9 million yuan
($3.85 million) in com-
pensation, his lawyer Zhu
Dongxing said.
The Beijing Third Inter-
mediate Court will hear
Myanmar Summary
the case on August 5, ac-
cording to a statement on
the courts website. Tesla
China declined comment.
Zhan declined to be inter-
viewed.
The case underscores
one of the thorniest prob-
Iems Iuced by IoreIgn hrms
in China. Global compa-
nies including Apple Inc,
Koninklijke Philips NV
and Unilever NV have all
been embroiled in trade-
mark disputes in the
country in the past.
Zhan, who claims own-
ership of the Tesla
trademark, has long been
a headache for the Palo
Alto, California-based car
maker and in part con-
tributed to Teslas belated
arrival in China.
Based in Chinas south-
ern province of Guang-
dong, Zhan registered the
trademarks to the Tesla
name in both English and
Chinese in 2006. He had
in the past sought to sell
the label to the US com-
pany but negotiations col-
lapsed.
In January, Veronica
Wu, Ieud oI TesIu`s CIInu
operations, told Reuters
the company had re-
solved the trademark dis-
pute that had prevented it
from using Te Si La, the
Chinese name best known
among Chinese consum-
ers, which Tesla wanted
to use in China.
Zhans current lawsuit,
however, brings new un-
certainty to Teslas fate
In CIInu, wIIcI LIe hrm
had expected to become
its biggest global market
next year.
Apple Inc was embroiled
in a similar case for years
before reaching a $60
million deal last year for
the rights to use the iPad
trademark in China.
Reuters
A man looks around Tesla Motors Model S P85 at its showroom in Beijing.
K
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July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
27
Myanmar Summary
Samsung Electronics Voted Most Trusted
espite Prot eclines
S
amsung Electronics
has been named the
most trusted brand
in Asia for the third con-
secutive year in Campaign
Asias online survey of
1,000 brands in the re-
gion.
Campaign Asias joint
report, conducted with
Nielsen, rates 14 major
product categories in-
cluding Asias automo-
tive, retail and consumer
electronics sectors.
The studys research
monitors 13 markets
around Asia, where 400
respondents provide
feedback from each coun-
try except for India and
China, who both have up
to 1,000 people surveyed.
Vice president of mar-
keting at Samsung Elec-
tronics in Southeast
Asia, Irene Ng, said the
company remains com-
mitted to providing qual-
ity products to customers
throughout the region.
We ure Ionoured Lo be
voted as the No.1 brand in
Asia for the third consec-
utive year, she said.
However, last Tuesday
Tom Stayner
the company revealed its
operuLIng prohLs Ior LIe
second quarter of 2014
had dropped up to 25 per-
cent.
From April to June
Samsung Electronics es-
LImuLed LIeIr prohL mur-
gins reached $7.1 billion,
showing a decline from
prohL LoLuIs IILLIng uImosL
$10 billion a year ago.
The companys operat-
ing revenue plunged 15.2
percent over the year af-
Ler prohL LoLuIs reucIed
$8.qq bIIIIon In LIe hrsL
quarter of the year.
CumpuIgn AsIu-PucIhc
Managing Editor Jason
WIncuInus suId despILe
the businesses setbacks
consumer interest in the
companys products is
growing globally.
The company has
clearly made strong in-
roads with Asias consum-
ers and maintaining a
strong top-of-mind posi-
tion here holds consider-
able importance from a
business perspective, he
continued.
Stalling smart phone
sales and the increasing
value of South Koreas
currency, the won, have
accounted for Samsungs
Electronics declining
prohL ruLes.
The won hit a six-year
high against the US Dol-
lar this year.
ReseurcI hrm nLernu-
tional Data Corporation
(IDC) has forecast global
smart phone shipment
growth is expected to
drop almost 20 per cent
in 2014, which could add
to Samsungs declining
trend.
Carlos Slim Bows to Mexico Telecoms Reform
B
illionaire Carlos
Slims America
Movil said it is
ready to divest assets in
an unprecedented step
to cut its market share in
Mexican telecoms below
50 percent and escape the
burden of tougher regula-
tions.
The company, which
controls some 70 percent
of Mexicos mobile mar-
ket and 80 percent of the
hxed IIne busIness, suId
in a statement its board
had decided to sell assets
to another company that
could boost investment in
the sector.
America Movil, Latin
Americas biggest tel-
ecoms company, did not
specify which assets it
could get rid of, and a
spokesman said it was
still open as to what and
to whom it could sell.
Christine Murray But America Movil said
the buyer needed to be
an option that can genu-
inely take part in this cap-
ital-intensive sector, to
overcome LIe InsumcIenL
investment of our com-
petitors.
The Mexican govern-
ment hailed the decision,
saying it was a direct re-
sult of its drive to improve
competition.
The Transport and
Communications Minis-
try declares that this de-
cision could transform
competition in the tel-
ecommunications sector
with improved quality
and better prices for ser-
vices to end users, the
ministry said in a state-
ment.
Still, any divestitures
would be conditional
on America Movils mo-
bIIe pIone und hxed-IIne
units no longer being de-
clared dominant players,
the company said. That
could still create a poten-
LIuI conIcL wILI MexIco`s
telecoms regulator.
Reducing Slims market
share below 50 percent
would be a triumph for
President Enrique Pena
NIeLo, wIo Look omce
20 months ago pledg-
ing to boost competition
in Latin Americas no.2
economy, where massive
wealth is concentrated in
few hands. Reuters
Mexican billionaire Carlos Slim arrives to the opening of the Inbursa Aquarium in the wealthy neighbour-
hood of Polanco in Mexico City.
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Campaign Asia . Nielsel
~ . . ..| . ..: q~ ._
Asia's Top 1000 Brands
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~. . ~q Samsung Electronic
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- South East AsiaMarketing
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. Citizenship Inititatives
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Campagin Asia Pacifc .
Nielsen . .~:~ e :...:
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. ,: Carlos Slim -
AmericaMovil ._ .~ . ~
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q:..,..~:~ ..:._.._e
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Myanmar Business Today
mmbiztoday.com
28
INTERNATIONAL AND DOMESTIC FLIGHT SCHEDULE
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 2 3 4 5 6 7 RGN SIN 19:05 23:40 TigerAir TR2826 1 2 3 4 5 6 7 SIN RGN 17:05 18:25 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
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
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
Mann Yadanarpon Airlines
July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
IBM to Bet $3b Over Five Years Hoping for Breakthrough in Chips
Marina Lopes
I
BM announced that
it will invest $3 bil-
IIon over LIe nexL hve
years in chip research and
development in hopes of
hndIng u gume-cIungIng
breakthrough that can
help revive its slumping
hardware unit.
IBM announced the plan
before its second quarter
earnings. Last quarter,
sales in its hardware sec-
tor plunged 23 percent
from a year earlier and
the company posted its
lowest quarterly revenue
In hve yeurs.
BM Iopes Lo hnd wuys
to scale and shrink silicon
chips to make them more
emcIenL, und reseurcI
new materials to use in
making chips, such as car-
bon nanotubes, which are
more stable than silicon
and are also heat resist-
ant and can provide faster
connections.
The message to our
investors is that we are
committed to this space,
we believe there is great
innovation possible that
A worker is pictured behind a logo at the IBM stand on the CeBIT
computer fair in Hanover.
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will be necessary in world
of big data analytics, said
Tom Rosamilia, senior
vice president of IBMs
Systems and Technology
Group.
These are essential in-
gredients in delivering
the kind of performance
the world will demand.
The world is demanding
it now and will continue
to demand it for the next
10 years, he said.
The investment is equal
to half of all IBMs re-
search and development
last year. The company
is preparing to divest its
chip manufacturing busi-
ness to focus on intellec-
tual property. The compa-
ny is rumoured to be close
to a deal with chipmaker
Globalfoundries Inc.
At an investor brief-
ing in May, IBMs Chief
InuncIuI Omcer MurLIn
Schroeter said new re-
search and development
was essential to refresh-
ing the hardware sector,
which he expects to sta-
bIIIze In zo1q und grow In
2015.
Silicon chips, which
have been made smaller
every year, are reaching
a point of diminishing
returns, preventing chips
from delivering perfor-
mance improvements de-
manded by new technol-
ogy, the company said.
You might say this is
not a good time to be in
the silicon chip business,
but it is a great time to be
ready for the next thing.
This is the next thing,
said Richard Doherty a
research director at The
Envisioneering Group in
Seaford, NY. Reuters
Microsoft Says Cybercrime Bust Frees
4.7 Million Infected PCs
Jim Finkle
M
icrosoft Corp
said it has freed
at least 4.7 mil-
lion infected personal
computers from control
of cyber crooks in its most
successful digital crime-
busting operation, which
interrupted service at an
InLerneL-servIces hrm Lwo
weeks ago.
The worlds largest
software maker has also
IdenLIhed uL IeusL unoLIer
4.7 million infected ma-
chines, though many are
likely still controlled by
cyber fraudsters, Micro-
soIL`s cybercrIme-hgILIng
Digital Crimes Unit said.
India, followed by Paki-
sLun, EgypL, BruzII, AIge-
ria and Mexico have the
largest number of infect-
ed mucIInes, In LIe hrsL
IIgI-prohIe cuse InvoIv-
ing malware developed
outside Eastern Europe.
Richard Domingues
Boscovich, assistant gen-
eral counsel of the unit,
said Microsoft would
quickly provide govern-
ment authorities and In-
ternet service providers
around the world with the
IP addresses of infected
machines so they can help
users remove the viruses.
Those victims are cur-
rently not aware they are
infected, Boscovich said
in an interview.
The operation is the
most successful of the 10
launched to date by Mi-
crosofts Digital Crimes
Unit, based on the num-
ber of infected machines
IdenLIhed, BoscovIcI suId.
Microsoft located the
compromised PCs by in-
LercepLIng Lrumc Ieuded
to servers at Reno, Ne-
vada-based Vitalwerks
Internet Solutions, which
the software maker said
criminals used to commu-
nicate with compromised
PCs through free accounts
on its No-IP.com services.
Vitalwerks criticised
the way Microsoft han-
dled the operation, say-
ing some 1.8 million of
its users lost service for
several days. The internet
servIces hrm suId LIuL IL
would have been glad to
help Microsoft, without
interrupting service to le-
gitimate users.
Microsoft has apolo-
gised, blaming a techni-
cal error for the disrup-
tion, saying service to
customers has been re-
stored. Reuters
The Microsoft Iogo is seen at their ofces in Bucharest.
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Myanmar Summary
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_.. hardware .q:...~..
. : ~~, ~ ~_ _ . _ ~~
~ _ ., ._ e _e ..:._ e
,.~ ., .,.:.._.
July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
Donation Ceremony of Ooredoo Myanmar
Introduction Ceremony of work.com.mm
Sophie ten Bosch,Head of marketing/PR makes presentation at the event.
work.com.mm Delegates pose for a photo. work.com.mm Giving present to a guest. work.com.mm
Jort Statema, country manager, Myanmar makes presentation at the event.
work.com.mm Guests at the event. work.com.mm Staf at the event. work.com.mm
Te Grand Opening Ceremony of ARTBOX and YUKOS Selection
Ooredoo Delegate giving presents to monestary student. Ooredoo Ooredoo Delegate giving presents to monestary student. Ooredoo Ooredoo Delegate giving presents to monestary students. Ooredoo
Zarni Aung, sales and marketing manager of Jakomy. Kyaw Min Jakomy staf poses for a photo. Kyaw Min Customers look at products. Kyaw Min
July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
31
July 17-23, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
Myanmar: Where it All Bagan
David Ross
I
f Myanmar a relatively-
recent entrant to the mass-
tourism market were
to be said to have a tourist
hotspot one such contender
would surely would be Bagan
(or Pagan), the hot, dusty,
uL us u puncuke ruIns oI un
ancient city.
As a relative newcomer to
Myanmar, from the great
land down-under, spending
something on the order of four
weeks in-country with an-
other true-blue-Aussie-bloke
I thought it might be good to
go see the place they put on the
postcards. Bagan.
You hear about it sometimes,
IIke some Iur o pIuce wIere
the temples look like trees of a
forest especially given they
chopped down all the trees to
hre LIe brIcks. And IL`s Lrue, IL
is like a forest, trees both big
and small.
My parents travelled to
Myanmar back in the day,
but back then tourists could
only come for a week, a day
of which they spent in Bagan.
But that was before the advent
of e-bikes, so it was more of a
cursory look and less French
tourists.
Lets talk about the French
tourists for a minute; maybe
its just me but it seems like
wherever I go in this great land
at the end of the road, some-
where, a French guy (or girl)
Ius been LIere hrsL. WIere LIe
French go, we follow.
Its debatable as to whether
it was the Mongol invasions of
the 13th century did it in, or
rather the resultant collapse of
the Bagan empire, but the city
and its environs were swal-
lowed up by wind, rain, the
river and time itself, aban-
doned by the empire to which it
gave its name.
Time is all around you, wher-
ever you look the ubiquitous
spires poke above the brush
that grows thick around the
river before thinning out in
the drier plains to the west. The
stupas and pagodas weathered
by thousands and thousands
of nights and days of wind and
rain that rolls up the Ayeyar-
waddy.
To vIsIL In LIe o-seuson,
a time when rain isnt quite
around the next corner but
still close enough at hand, is
both at times unusual and
advantageous. In this sense
Myanmars tourism industry is
a great place for the value-hun-
gry to look. Bagan is known for
being a hot place, but its hotter
still when its the hot time of
the year, if you come in the
o-seuson you`re u IILLIe more
likely to get wet but youre far
more likely to avoid the heat.
All through town old, new
and NyaungU theres vacancy
and a somewhat unsettling
lack of the requisite of a tourist
hotspot; the tourists.
The sunrise/sunset in Bagan
seems to work like a beacon,
drawing tourists out of their
hotels and guesthouses, out
and up, towards the sunset
temple. Although when we
arrived the French had got
there before us and set up their
cigarettes and sprite picnic.
We were Iucky enougI Lo
be able to do Bagan from the
comfort of one of the e-bikes,
we were also lucky enough to
run out of juice right where
we needed to and ran into a
couple of French guys whod
also found that a bikes charge
wasnt quite enough to get you
all the way.
Again, wherever the French
go, we must follow.
Standing by the side of the
road, in almost pitch blackness,
waiting for the guy with a new
battery to arrive is something.
If dawn is where you feel most
alone in Bagan, surely 8pm on
the side of the road gets close.
Due to it being the wet season
we were treated not only to the
heat central-Myanmar had to
oer buL uIso LIe cooI breeze
(and subsequent apocalyptic
rainshower). A drop, a couple
more and then the sky opens
up and youre very glad you
happened to be somewhere
with a couple of spots with
enough cover to keep you dry.
For such a hot and dusty place
it sure does know how to put
on a show, as though it decided
its had just about enough with
this whole dust thing, how
about we shake it up a bit and
turn all the paths to mud.
BuL once you hnd somewIere
to hide and waited that requi-
site 15 minutes youre all but
ussured Lo hnd Bugun sLIII ouL
there just waiting for you to
climb some slippery steps or
sink six inches into fresh mud.
TIe cILy-sILe oers monu-
ments for the young and old, in
big and small. The ubiquity of
the small votive shrines makes
them seem cheap-change. Like
a pocket full of coins, youll
pick the biggest ones even if
a lot of pennies add up to a dol-
lar. If youve got time see the
sights. If youve not, see what
you can and imagine the rest.
Some of the temples have
seen a more recent refurbish-
ment, coloured tiles, fencing
and padlocks. Others sit almost
idle, save for the man who
wants to sell you his paintings,
which he painted after he
shows you where the stairs are.
It doesnt help that everyone
is a painter selling the same
paintings, but the same could
be said about the tourists (me
included) who go snap happy
for out of focus pictures of the
sunset.
But whats a tourist town
without something to sell to the
tourists and whats a guide if
not someone looking to make
something out of it. So Look
around, see the big ol temples.
Some are simply awe inspiring,
although in many theres no
real way for you to appreciate
the grandeur of the spread, the
gates locked to preserve cul-
tural legacies of glory-past.
But once you start looking
more cIoseIy uL Bugun you hnd
a couple of things that very well
explain why certain decisions
have been made and why cer-
tain ones have not.
For one youll understand
why so much of the place was
rebuilt after the giant earth-
quake of 1975 which destroyed
most of it, but youll also un-
derstand why UNESCO didnt
recognise it as a world heritage
site, considering all the non-
authentic restoration thats
gone on. Even though it looks
good Lo InsLuII ood IIgILIng,
coIoured LIIes und usIIng coI-
oured aureoles behind the head
of Buddha.
Perhaps one of the best, and
yes, most predictable places
where youll really be able
to see everything to see is
the sunset temple or Shwe-
sandaw. Even if it can be a bit
of an elbow-to-elbow view its
still really quite something,
just try not to get in the way of
everyones sunset photos.
Temples such as the Dham-
mayangyi, once inside, seem
remarkably small, its interiors
seuIed o, IeuvIng onIy LIe
porches and outer corridors
accessible. Others such as the
SIwezIgon Puyu remInd one
what old Bagan, before times
passing, might have looked
like.
If Old Bagan and its immedi-
ate surrounds are the epicentre
of the Bagan experience, New
Bagan would be the sleepiest
spot with still quite striking
views of the Ayeyarwaddys
eastern bank. Theres plenty
of ways to see the lay of the
land, e-bikes seem to be one of
the better choices so long as
youre very aware of the unfor-
tunate propensity of the things
to run out of juice right when
youd rather they didnt.
Otherwise you could always
try the steel-frame single
speeds that can be hired for
about $1.50, that being said
theyre not quite the bikes
you hnd buck Iome buL wIII
do the job so long as you give
them that extra time in the hot
Bagan sun. Theres also the
added options of horse-carts
or even private taxis but I cant
speak for the experience seeing
as theyll set you back a fair bit
more than hiring a bike pow-
ered or otherwise.
So go to Bagan, maybe youll
even beat the French to it.
Sunset at Bagan from the Shwesandaw pagoda.
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