Myanmar Business Today is Myanmar’s first bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories.
Myanmar Business Today’s target readers are foreign and local investors, businesspeople and government officials, and our advertisers are also those who try to reach this niche market in Myanmar. We provide best solutions for our advertisers with our content, outstanding print and paper quality, and superior distribution chain. We convey our advertisers’ messages to readers not only in Myanmar but also in Thailand, Southeast Asia’s second largest economy.
For more information please visit our website www.mmbiztoday.com.
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Myanmar Business Today is Myanmar’s first bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories.
Myanmar Business Today’s target readers are foreign and local investors, businesspeople and government officials, and our advertisers are also those who try to reach this niche market in Myanmar. We provide best solutions for our advertisers with our content, outstanding print and paper quality, and superior distribution chain. We convey our advertisers’ messages to readers not only in Myanmar but also in Thailand, Southeast Asia’s second largest economy.
For more information please visit our website www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday
Twitter: @mmbiztoday
Linkedin: http://www.linkedin.com/company/myanmar-business-today
Myanmar Business Today is Myanmar’s first bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories.
Myanmar Business Today’s target readers are foreign and local investors, businesspeople and government officials, and our advertisers are also those who try to reach this niche market in Myanmar. We provide best solutions for our advertisers with our content, outstanding print and paper quality, and superior distribution chain. We convey our advertisers’ messages to readers not only in Myanmar but also in Thailand, Southeast Asia’s second largest economy.
For more information please visit our website www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday
Twitter: @mmbiztoday
Linkedin: http://www.linkedin.com/company/myanmar-business-today
Myanmar Summary Contd. P 6...(L\) I n April, the European Union permanently lifted all re- maining economic sanctions against Myanmar as a reward for the ongoing reforms that have been taking place in the country since a quasi-civilian govern- ment came to power in 2011. This was followed by Myanmar being readmitted into the Generalised System of Preferences (GSP) status, allowing Myanmars IndusLrIes Lo benehL Irom duLy- free access to EU markets on their exports, while last month saw EU High Representative Ior oreIgn AuIrs und SecurILy Policy Catherine Ashton visit Myunmur IeudIng LIe hrsL EU- Myanmar Taskforce. The signs are clear. The EU is pleased with the reforms that continue to take place in a coun- Lry LIuL wus, Ior hve decudes, practically isolated from the in- ternational community. Another important step took place ear- lier this year when Roland Kobia wus unnounced us LIe EU`s hrsL ever resident Ambassador in Myanmar. He came to Myanmar after having been previously EU Ambassador to Azerbaijan and having spent time in the Private Om ce oI LIe EU CommIssIoner for Energy as well as seven years in EU delegations in Africa deal- Oliver Slow Ing wILI LrunsILIon und conIcL countries. The message we want to send is that we support the eorLs LIuL Iuve been mude since March 2011 and we think this is a historic opportunity for the international community to accompany the reforms and oer IeIp wIen und wIere IL Is needed, Kobia told Myanmar Business Today in an exclusive interview last week. At the time, we saw that the reforms seemed to be genuine and we wanted to show that the EU Is LIere Lo supporL LIe eorLs being made by the new govern- ment in its transition. Political and economic transitions are dIm cuIL exercIses, IeIp Is oILen welcome, he said. Speaking of the EUs overall role within the country which began in 1996 with funding pro- jects aimed at development and has seen more than $500 million in total Kobia said that the aim is to promote a number of values within the country, including democracy, human rights, rule of law, gender equality, judiciary independence and free market principles. Fundamentally, the EU wants to promote peace, stability and security as the foundations of the New House Contd. P 6...(L\) -_..~ ~.e. _.,.:.~..' . ~ . :.._ ~ , q .,...._ . .. :..q..~...:.~ eeq:..... ._..,.._ ......_ ~q..:. ~. .q. ~:~:q.:_.. .:_. .: ..: _._. ._.: .. . .:.~ . . ..: .,.._~~~ ~.e. ~.~.~ _._.. .~...:.~ eeq:....._.. _e.._. _.,.:.~.,_e Generalised Systemof Preferences (GSP) .,. ~:. _.,._~.._.. _.,.:.- ~:e. . , .~:.. .. . , ..:.~:. .~,~..~ ~.~:~.,..:. .... _e ~~ ..~.~ .. .:..:. ..q, ~~~ GSP .,._e ..:q~. ._._._e.._. _.,.:.~.,_e .e...|..,..|. ~_.__._.q: ~. .~~, .. .~ . .q._.~ .~:~ .~ . ._.:.q. ~_ . q_. ..,:~ _._. ._.: .. . .:.~ .~ ~ ~ . .. ..: q ~ . ._ ~~ ~ ~ .e ~.,_e _., .:. ~..' .:.. :.~,. . ._ . .,:~.~.q..|..:._....~.. . :~~: , . q:~ .e . ~.~ ~_ e. e. ~..: q ~ . e ...: RolandKobia~:.e. . . ~..:. . ~ _., .:. . q:~ .e . ~.~ ~_e. .,~.._..._e.._. EU Here to Support Myanmars Transition: Ambassador Bloc identifes key areas of engagement as education, rural development, government and capacity building, and peace, says Roland Kobia, EU Ambassador to Myanmar. EU Ambassador to Myanmar Roland Kobia speaks during an exclusive interview with Myanmar Business Today. S h e r p a H o s s a in y December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com 2 LOCAL BIZ Myanmar Summary MYANMARS FIRST BILINGUAL BUSINESS JOURNAL Board of Editors Editor-in-Chief - Sherpa Hossainy Deputy Editor - Oliver Slow Reporters & Writers Sherpa Hossainy, Oliver Slow, Kyaw Min, Shein Thu Aung, Phyu Thit Lwin, Htet Aung, Su Su, Aye Myat, Daisuke Lon, Yasumasa Hisada Art & Design Zarni Min Naing (Circle) DTP May Su Hlaing Translators Shein Thu Aung, Phyu Maung Advertising Tay Zar Zaw Win, Seint Seint Aye, Moe Hsann Pann Advertising Hotline - 09 7323 6758 Managing Director Prasert Lekavanichkajorn pkajorn@hotmail.com Email Editor - sherpa.hossainy@gmail.com Special Publications - oslow99@gmail.com Advertising - sales.mbtweekly@gmail.com Designer - zarni.circle@gmail.com Phone Editor - 09 42110 8150 Deputy Editor - 09 3176 9529 Designer - 09 7310 5793 Publisher U Myo Oo (04622) No. 1A-3, Myintha 11th Street, South Okkalapa Township, Yangon. Tel: 951-850 0763, Fax: 951-8603288 ext: 007 Penbun Distribution Co., Ltd. Tel: (662) 6158625-33 Fax: (662) 6158634 Distributor (Bangkok) Subscription & Circulation Aung Khin Sint - aksint2008@gmail.com 092043559 Nilar Myint - manilarmyint76@gmail.com 09421085511 Foreign Trade up 30 percent Kyaw Min M yanmars foreign trade posted a rise of $3.65 billion, or 29.7 percent, In LIe hrsL nIne monLIs oI LIe currenL hscuI yeur over the same period in LIe IusL hscuI, uccordIng to Ministry of Commerce data. The total trade volume reached $15.92 billion during April to December In zo1-1q hscuI yeur, oI which maritime trade ac- counted for $13.28 billion and border trade $2.64 billion. Exports through sea routes amounted to $5.59 billion while imports recorded $7.7 billion, the data shows. Myanmars main export items include rice, maize, peas and beans, sesame, rubber, marine products, teak, hard wood, natural gas, jade and garment while import items include dairy products, palm oil, pharmaceutical products, cement, ma- chinery, electronic equip- ment and plastics. The government has set a total trade target of $25 billion, 80 percent of which are expected from overseas trade and the rest from border trade. The main exporting destinations for Myanmar in that period were China, I ndia, Thailand, Malay- sia, Vietnam, Singapore, the UK, the US and the Philippines. Myanmar has recently signed border trade agreements with I ndia, Thailand, China and Bangladesh in a bid to boost trade. Govt Calls on Private Sectors to Invest in Electricity Phyu Thit Lwin T he Ministry of Elec- tric Power has in- vILed prIvuLe hrms to produce electricity in any part of the country in a bid to tackle the crippling power shortage In LIe counLry, un omcIuI statement said. Any prIvuLe hrm LIuL wants to build hydropow- er projecLs, gus-hred und couI-hred power pIunLs are invited to submit ap- plications to the Ministry of Electric Power, the release said. This is the third time the Ministry of Electric Power has invited private sector for electricity genera- tion. Earlier in J une and September, the ministry invited the private sector to invest in the key sector. To date, 23 companies have been granted per- mission to generate elec- tricity in 84 townships. The ministry said inter- ested investors have to mention the details of the proposed project includ- ing the type of the power plant and the location where it will be set up. The projects that will meet the required stand- ards of environmental and social assessments will be allowed, it added. Myanmar currently produces overall 3,300 megawatts of electricity. However, production hits a snag during summer as 70 percent of the production comes from hydropower. Companies from I ndonesia, J apan and South Korea have already shown interest in invest- Ing In couI-hred und gus-hred power pIunLs In Myanmar. Myanmar Summary e. _:.q.. . - ..~ .. ~:~~. _.,.:.- . _.:.~,.e.._ .,.._ _:.q...~ . q:. .,. ..~.~~.:._.. ~..q ~,..'.: ,.' .e~ . . _. ~~ .:._~:. ... :..q. . ~ .., ..q: .~e .q.~, _~ . . ~.~~.~.:.~q .q ._. ~~,~~, _:.q...- -_... .~:.~~. .. ..|.~ , . e . ..:~. : ~.. q~,..'.: ~. .e ~ .q:~q._.. .q._~:. ~,.e.. ~..q ~,..'.: ~,. .eqq._.. ,e.. ~ , . e .q.. ~..q~, ..'.: .', .e qq.._. _.,.:.- ~.~.~,~ ., ._.:. . ..~:q_ ... .q:: .q~~~, .:. ~,. ...: .:~ .:~ . .~:~ . . .. ~_ ~..~ .|~_.. ..~,.:. ~ . ~ ~ ~ , .:. .:.~ , . . ...~|..._..:. ..._. .~ .. _ ..:. ~ .~ .q:,. ~. .~..: .:.. ..~ . ~. ~. .~..: .:. .|~ ._~:. .q._. _., .:. ~~ . .. .. .:~ ~:. _ .~ .~:~ . .:.~ ._eq.q,~~~ ....... ~:.~,_~._:,. ..~.. ,..:.~:. .. .. .:~ ~:. ~.....,..:.~ ~ .q:~....:_~q,~~~ e~..'.._~:. ~...: ~... ._.:_~:..._. .q~:.. . .. . . ~ , .. :. .:~.:~ . . .. .~:~ . . ..... .:~~:.....~,.:. ~ ~_ .: ..: q ~ . ..: ._ ._ . . ~. . , ... . . .. . . .~:.~, _ ~ ._:,. . . , .~. _...:~ :.. .:. _....._~:. .q._. e.e~..'.._ .... ...~:.~,_~._:,. ~~e ~_~.~_e. ..~~_~:. .....:~~:.~..... , .~~ ~ e ~ ..'_. ._e. ._ . ~,.. .~~:..:.~ ._. ~, _~._:,. . . ~~_ ~:. .......~:.~_~ ~.q:~q..._..._~q, e~ ..'.._. ~.~..|. , . ~.,_e _.,e..|. , . ~ .....:~~:.~.. q, ~~ ~ ~q:.~ . _..~ qq :.._~:.._ . .q._ . 3 December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 4 JFE Forms Steel JV with Construction Ministry 10,000-tonne steel bridge fabrication plant to be built in Yangon J apanese steel giant J FE Engineering Corp has established a joint venture company with the Ministry of Construction in a bid to tap Myanmars booming infrastruc- ture construction market, the company said. The new company, J &M Steel Solutions Co Ltd, has started the construction of a 16-acre new plant in Yangon, J FE said in a statement. J &M plans to complete the construction of the steel struc- ture fabrication plant, with an annual capacity of 10,000 tonnes in Thaketa township, Yangon, by April 2014, to start its business related to steel bridge design, fabrication and construction, the company said. I n addition to steel bridges, the plant will be capable of making harbour and coastal structures and container cranes, J FE said. The company said it will intro- duce its high quality fabrication technologies to the plant. The joint venture company will gradually expand the scope of its business to general transportation and logistics in- frastructure development, the Tokyo-based company said. Several international con- struction companies have been wooing Myanmar to make headway into the Southeast Asian nations lucrative con- struction market as it emerges from decades-long isolation and military dictatorship, which left the country direly requiring construction of transportation infrastructure, such as roads and railways, as well as logistics infrastructure, including port terminals. With J &M receiving orders for projects within Myanmar, the Sherpa Hossainy A man walks past a logo of JFE Holdings Inc outside its headquarters in Tokyo. T o r u
H a n a i/ R e u t e r s ministry of construction aims to increase the ratio of domesti- cally fabricated steel structures from its current level of about 10 percent. J FE said it will leverage the joint venture company not only to receive direct project orders, but also as a production base for the expansion of its over- seas steel structure business in Southeast Asia, Middle East and Africa. TIe compuny wIII oer ILs engineering expertise to the en- vIronmenLuI und energy heIds, in addition to the countrys transportation and logistics infrastructure. The establishment of the joint venture was agreed to between J FE Engineering and the Public Works department under the ministry in February. Proce- dures for the establishment have since been carried out, and a business licence was granted in November. The share capital of the J V company is 1.2 billion ($11.68 million), where J FE Engineer- ing Corp holds 60 percent stake while the Public Works depart- ment holds the rest. The company will start with 80-90 employees (about 70 workers) and will increase its human resources up to 210 empIoyees (o sLu und 18o workers) by April 2014. J FE Engineering opened its Yangon Branch in 1995 which provides technical support to national companies regard- ing the construction of large bridges. I t has been accepting over 200 welding trainees at its Tsu Works since 2002. I t also started an internship training program for students of the Yangon Technological University this year to train fu- ture infrastructure construction professionals. J FE Holdings, the parent company of J FE Engineering, was formed in 2002 by the merger of NKK and Kawasaki Steel Corp. At the time, NKK Corp was J apans second largest steelmaker and Kawa- saki Steel was the third largest steelmaker. J FE Holdings main busi- ness is steel production. I t also engages in engineering, ship building and real estate rede- velopment. J FE Holdings is the hILI IurgesL sLeeI muker In LIe world with revenue in excess of $30 billion. J FE Holdings has several subsidiaries including J FE Engineering, J FE Steel and J FE Shoji. Myanmar Summary ., . -. .~ . . , ._~ ._e. ._ JFE Engineering Corp ._ _.,.: .~.e.q.~,_~._:,. ~~.~ e~..~.~~..~ ~_.:._.. _.,.:.- e_e.~.~~._..:._ ~._..~..:~~~..:~...q. ...~~~ ~.q:~....:.: . q, ~~ ~ _e. ._~: . ~ . ~ . ._.: _~:..._. ~..~_.:.~..: e~.. ~ . ~ _e. ..: J &M Steel Solutions Co Ltd ._ q, ~ , ~ ._. ~' -~ ~~e~~,.~:. ~.._._.. .~, .. ~_ ..:~ . ~:. ~._.. . ..: . _. _e. ._~:. JFE . ._.:_~:.. ._ . 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LOCAL BIZ 5 December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com Myanmar Summary US Slaps Sanctions on Myanmar Firms over N Korea Arms Trade Htet Aung T he US government on Tuesday last week imposed sanctions on three com- panies and one person in Myanmar in its latest eorL Lo cIoke o uIIeged arms trade between the Southeast Asian nation and North Korea. The Department of Treasury blacklisted Asia Metal Company Ltd, Soe Min Htike Co Ltd, Excel- lence Mineral Manufac- turing Co Ltd as well as Lt Colonel Kyaw Nyunt Oo, u mIIILury sLu omcer working with Myanmars Directorate of Defense I n- dustries (DDI ), a military entity on Washingtons sanctions blacklist since J uly 2012. The move entails sanc- tions that bar American citizens from doing busi- ness with those targeted and freeze all of their as- sets under US jurisdiction. These actions continue LIe Treusury`s eorLs Lo target those linked to DDI , which has been involved in purchasing military equipment and related material from North Ko- rea, the Treasury said in a statement. The Treasury said the move does not generally target the Myanmar gov- ernment, as it has agreed to follow through a UN Security Council resolu- tion banning the purchase of military goods from NorLI Koreu. US omcIuIs say Myanmar has cur- tailed the trade, but not ended it. The revenues from these continuing military sales directly support North Koreas illicit activi- ties, said Treasury Under Secretary for Terrorism and Financial I ntelligence David Cohen. We will continue to target this activity in Burma, and the region, as we work with our inter- national partners to shut down North Koreas dan- gerous and destabilising weapons proliferation. Soe Min Htike was a procurement agent for the DDI , the Treasury said. I t and Excellence Mineral worked with North Ko- reun omcIuIs Lo ImporL material for weapons programs. Asia Metal constructed buildings and supplied construction materials on a DDI factory compound where the Treasury said about 30 North Koreans were working. The department added Lt General Thein Htay, the chief of DDI , to its blacklist in J uly for his involvement in arms deal- ing with Pyongyang. The military coopera- tion with North Korea was forged during Myanmars international isolation. The State Department has said that in late 2008, wIen Myunmur omcers visited Pyongyang, they signed a memorandum of understanding with North Korea on assistance to build medium range, liquid-fuelled ballistic missiles. Washington has eased sanctions on Myanmar and sent back an ambas- sador in response to the reforms undertaken in the Asian nation in the past few years. The US government imposed fresh sanctions on three companies and one person in Myanmar in its latest effort to choke off alleged arms trade between the Southeast Asian nation and North Korea. B o b b y
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During the EU-Myanmar Taskforce, which took place in Yangon and Nay Pyi Taw on November 14 and 15, the EU unnounced LIuL IL Iud IdenLIhed four priorities for its develop- ment aid to Myanmar for the next years: education, rural development, governance and capacity building, and peace. The EU also used the event to sign agreements with the Myan- mar government on Small and Medium Enterprises (SMEs), mining and tourism, as well as an EU-Myanmar Business Council and a European Cham- ber of Commerce in Myanmar. How the international busi- ness community views Myanmar as a place to invest is important as the country continues its reforms, Kobia said. Companies from Europe see Myanmar as this big new terri- tory where there are great busi- ness opportunities, so they come here with a great desire to invest. Now, when people come here, LIey reuIIse LIuL LIIs Is u dIerenL environment compared to Eu- rope. So LIey sLurL reecLIng und begin to see various problems that even the government itself recognises, he said, referring to issues such as high land prices, access to electricity, lack of hu- man resources, the protection of investments and other problems LIuL ure uecLIng IoreIgn busI- nesses interested in beginning operations in Myanmar. Im not a businessman, but I know theres one thing that businesspeople dont like, and that is uncertainty. You need to trust where you put your money, and you need to ensure that you will put the money in a basket that is stable, otherwise you fear you can lose that. One key area for Myanmars development is the Small and Medium Enterprise (SME) market, which makes up for an estimated 90 percent of all com- panies in the country. During the Task Force, the SMART Myan- mar (SMEs for Environmental, Accountability, Responsibility and Transparency) programme was launched, a $2-million pro- ject aimed at helping Myanmar SMEs to develop. In any country of the world, SMEs are the backbone of the economy. We want to help [Myan- mar] constitute a strong network of SMEs, therefore constituting a middle class, which in turn will help the country out of poverty. He added that the way to help SMEs is to set up a legal frame- work Lo IeIp LIem ourIsI, gIvIng people an incentive to develop a sense of entrepreneurship. Im not an expert in what happened before, but a Socialist economy isnt the sort of envi- ronment where entrepreneur- ship is encouraged. So one thing is the legal framework to make it easier for people to start a com- pany, you also need to provide know-how, transfers of technol- ogy and technical assistance. All these things the EU and other donors, because were not the only ones doing this can do to help create a good business environment. Another EU-led programme has seen 10 million ($13.5 mil- lion) pledged to a programme that will train 4,000 Myanmar poIIce omcers In communILy po- licing and crowd management, another sign, Kobia says, that the EU is serious about its engagement with the country to LIe benehL oI LIe popuIuLIon. In countries in transition, you need to show the population that politicians are not just talk- ing about changes. People want Lo see reuI concreLe benehLs Lo the country they want to feed their children better, they want to send them to better schools, they want less corruption and harassment and they want to see a police force that is there to help them. Critics of the programme have claimed that providing Myanmar with riot gear violates a longstanding EU arms em- bargo, but in an earlier press conference, Kobia countered, the equipment the EU will be providing to the police is only purely defensive, nothing LIuL cun be used oensIveIy. Shortly following this interview, riots began at a football match in Yangon, when the Myanmar national team was knocked out of the Southeast Asian Games football competition after los- ing to Indonesia. Following the game, supporters began tearing up seuLs, seLLIng hre Lo pubIIc property and hurling rocks at police. The polices response has come under some criticism, with omcers hrsL sLundIng by, und then later acting in a provocative manner there are reports of some poIIce omcers LIrowIng stones back at the rioters. In other incidents, most notably the wave of anti-Muslim attacks that have taken place in parts of the country in the past year, police have been criticised for standing aside as mobs attacked homes and razed entire villages. Kobia says that these sorts of in- cidents show the need for proper training of Myanmars police force, but it is work in progress and will take time to change mentalities, he said. The EU and other govern- ments have been criticised in the past for rewarding the Myanmar government before genuine de- mocracy has reached the coun- trys citizens. Political prisoners still languish in jails earlier this year, Thein Sein promised that all would be released by the end of the year, although 41 still remain incarcerated and ethnic groups are still reporting large-scale abuses, and while Kobia admits that problems remain, overall the country is making progress in this area. At the beginning, we believed in this country and we believe in the people; it has so far proven the right thing to do. But we re- main cautious and demanding the lifting of sanctions must come with progress, and the GSP is linked to certain benchmarks, with regards to democratisation, human rights and labour laws. So the EU remains vigilant and attentive. One area the EU continues to look very closely at is Rakhine state, most notably the plight of the Rohingya people, a Muslim minority group of which thou- sands have been displaced by violence in the region. Denied citizenship by the government who see them as illegal Bengali immigrants from neighbouring Bangladesh thousands of Rohingya are languishing in desolate internally displaced person (IDP) camps, unable to leave or to work. With few options available, many women in the camps are turning to prostitution in order to provide for their families and with men unable to work, domestic violence is reportedly on the rise. It is an issue, Kobia says, that the government and all political and religious leaders must take seriously and deal with. The EU can only guide the government in addressing the issue, Kobia says, and this can be done by encouraging them to be aware of the dangerous spillover of this issue and to consider how they are viewed internationally. It is also a question of reputa- tion. They must show that they are really serious about chang- ing the country. A country that will have the chairmanship of ASEAN, lets not forget that there are Muslim countries in ASEAN. They must ensure that they are really committed to dealing with a real problem that is not only a concern at a human rights level, but can also derail part of the transition. It can also have an impact on the business environment it could deLer InvesLors, IL muy scure o investment. While some international observers criticise Myanmar for inaction, Kobia says that he feels that this is an issue that the gov- ernment is at least looking at. What I can see is there have been some attempts [to deal with it]. Thein Sein has been there, hes met leaders from both [Muslim and Buddhist] sides and some Buddhist lead- ers have been arrested for their role in the violence. He made a political statement calling for peace, so this is all very good. But we remain concerned, as it was expressed by the EU and many others in the last UNGA resolution. The EU, the member states of the EU, the international community are all concerned about this issue and I believe that it is not in the interest of Myanmar to let this deteriorate further. From page 1...(L\) ~~~ . . . .~ .~~_ .~._ _._. ._.:.. . _~ ... ..~ .:.~ ~~ ~_ .:..... _.. _.,.:.- _._. ._.:....:.~ .|~..:q~q _..._ ...~ ~.~.q.~.q. ._e.._~:. Kobia ~ Myanmar Business Today . .,.._ ~.~~ ...,.~...._.,.._ ._.:_ ~:..._. _._.._.:....:.~.,_e ~., ~~e . .:_. .:. q ._ ~ .~ _. q_. . _., .:. -_._. ._.: .. ..q: _~.....~.:.~ ~.e. .:~......_~:. ,.~ ._.: _~:..._. _.,.:.~. ~.e. .|~.. ..:.._ ~_..~.._ ._.: _~:.q:~ ~' ....._ e_e. ~.~~.~~~ ..~,.~....~ ~..q~,..'.: ,~~ ..e~ .:~...:q~...:.._.. .. ~.q. .~.~.q. ~q:.... .....q.. .~...: ~q:..q.q. ~.q._~ ~.|~~ _.,.:.- ~q_~...~,e.~:. _.~~.: ..q,~~~ q_qe_ .|~..: q~._.._e.._~:. Kobia ~ ._.: _~:..._. ~_. ~.e ~.,_e _ . ... ..q. ~__..q.. ._..~._.~.,.:.~ ._. ~.~~.:...._~:. .q ._.q,~,. .,_._.~:~ .~ :. ~, q~. ~ q~.,.:.~ _.. . . ..: ~ .e _., .:~ .. . , . ~e .~ . .. ... .. ~ ~ .e. e _e . ~ .~~ . ~~ ~ ~. ~~._ ~.,. ~_.:.~ ~ _., ._.:_~:.. _. . ._: .q. .~..~...e_e.~.~~.q. ~..q. .....:q_~_..:~. . _ .... ..q.~ _e. ._~: . . q._ . ~ .e ~.,_e ~. .|.~ . .. ... .. ~ ~....:.. ~.~.:...,. ~..:. .~~.. .q.. :..:.q. ..,. ~.e_.,.:...:..q..~:. ..:~ _ .~ .:.~ .~ . ~ .q. . . ._ . ~_._ _._ . q: . .. :..q. ~..~~,.. _.,.:.~:. q... _.. . q, .,q:~. . ~_e. , _. _. . ._ _ ., .:. ~.,_e _._. ._.: .. ..:.~ .~.~..:q~..~. . ~.q..|._~:. Kobia ~ ._.: _~:..._. Im not a businessman, but I know theres one thing that businesspeople dont like, and that is uncertainty. You need to trust where you put your money, and you need to ensure that you will put the money in a basket that is stable, otherwise you fear you can lose that. EU Ambassador to Myanmar presents his credentials to President U Thein Sein. E E A S 7 December 26, 2013-January 1, 2014 LOCAL BIZ Myanmar Business Today mmbiztoday.com Myanmar Summary Yoma Forms JV with Sumitomo to Distribute Hino Trucks in Myanmar Kyaw Min S ingapore-listed Yoma Strategic Holdings has entered into a proposed joint venture with J apans leading trad- ing house Sumitomo Corp to distribute and service Hino brand trucks and buses in Myanmar, Yoma said. The proposed joint venture, subject to the approval of relevant authorities, is expected to be 60 percent owned by Sumitomo Corp, 20 percent by Elite Matrix, a wholly-owned subsidiary of Yoma Strategic, and 20 percent by First Myanmar I nvestment, a subsidiary of Serge Pun & Associates (Myanmar) (SPA). Yoma Strategic said its involvement in this joint venture will serve to further broaden the companys burgeoning automotive interests in Myanmar. This collaboration with Sumitomo Corp is but the latest in a long partner- ship history between Sumitomo Corp and the SPA group of companies, Yomu, wIIcI Ius u sIgnIh- cant range of operations in Myanmar, said. Hino Motors, a Toyota Motor Corp company, is the largest manufacturer of heavy- and medium- duty trucks in J apan, with sizeable market shares in Southeast Asia and Aus- tralia. Worldwide sales of Hino-brand products amount to 130,000 vehi- cles annually. I n J apan, Hino is widely preferred for heavy, medium and increasingly, light duty trucks. Andrew Rickards, Yoma Strategics chief executive, suId Yomu Is conhdenL In the prospects of its part- nership with Sumitomo Corp to distribute and service Hino brand trucks and buses in Myanmar. We have seen demand for robust trucks with good load capacity grow in tandem with the economy and with the continued improvements to infra- structure, we expect this momentum to sustain, Rickards said. Rickards said demand for long-distance coach services is also likely to increase, particularly for travel between major cities, as urbanisation continues and tourism ourIsIes IurLIer. Many major vehicle manufacturers are now eyeing the Myanmar market at the back of the vehicle demand growth spurt. We believe that this is a right step for us in our eorLs Lo sLrengLIen our automotive portfolio, in line with our longer term plans to become a sIgnIhcunL pIuyer In LIe automotive industry in Myanmar, Rickards added. Yomas business in- terests range from real estate and agriculture to automotive and luxury tourism in Myanmar and China. Together with its partner, the SPA Group, the group said its taking a conglomerate approach Lo buIId u dIversIhed portfolio of businesses in Myanmar. Listed in Tokyo, Osaka, Nagoya and Fukuoka stock exchanges, Su- mitomo engages in a wide range of businesses that fall in industries includ- ing media, resources and transportation systems. I ncorporated in 1919, it has an established presence in 116 locations including 65 overseas and 24 in J apan. A Hino 300 series truck. W M C . ~:. ~ .:q.. .:. ._ YomaStrategic Holdings ._ .,.- .~,... ,._~._e...: ..~..~:. .q.q .. e . .~. ~ ~ . . ~ , ~ ~:..:.. ~.~:..:.~:. _.,.:. ~ _ e , _ e . q , . ~, ..: . ...q, ~~ ~ ~~ . ~ . ...| .. . ..: q, ~. _. ..:~ :.. _.. . :.._~: . .q._. e .~. _.:.._ ~~ .~ . ...| ...: q ~ . ~:. .~ . q: ~:~:..:.~ ~~__. q, . ~. _.. , .~~ .~ e~ .. ..,.~ ..~.. ..,. qee: '~ q:..,. .. .:.eeq_.. Yoma Strategic . . . , .~_._ ~~. . ._ ..,.._e.._ Elite Matrix . ..,.qee: ~ q:..,. . Serge Pun & Associates (Myanmar) - ..,..~.. _e...: First Myanmar Investment . ..,.qee: ~ q:..,. ...:.eeq ._~:. .q._. Yoma Strategic . e. ~~ .~ . ...| ...: q ~ . ~ .|~.._ _.,.:.q ..: .~: ~:.. . , .~_~ ~ . ~ ~~ ~ ~~ ..~.~ .qq . ~ ._ . . . ~e _., .:..._ _e. ._~: . Yoma Strategic . ._.:_~:.. ._ . Toyota Motor Corp - ~.~_e...: Hino Motors ._ .,.~ ~_~..:. . ~.~.:.~,~~:._~. .:. ~...~ ~_~... ~..._e._.. ~.q.~: ~:q. _..._~..~ ... ~ ~ q e e:_~ ._~ ..:..:.. . :..._._e.._. ~. :~. ~, .~ Hino ~.~~.. ..:.~:~:..:.~:. ... ~,~~~~ ...q~ .q:..q ._~:. .q._. Yoma Strategic - ~. ..: . . _ e.. Andrew Rickards ~ ..~..~:. .q.q .. ~~.~....|._ ~. ~ ~ . . ~ , ~ ~:..:.. ~.~:..:.~:. _.,.:. ~ _e,_e.~,..:.....:. q, Yoma ~.,_e e_~_. q._~:. ._.:_~:..._. December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 8 Myanmar Summary Myanmar, Cambodia Ink Visa Exemption Treaty M yanmar and Cambodia have agreed on mu- tual visa exemption for holders of ordinary passports. The agreement on the move was signed by Deputy Foreign Minister U Tin Oo Lwin and Cambodian Ambassador to Myanmar Sieng Burvuthin in Nay Pyi Taw. The signing was aimed at strengthening existing relations In uII heIds und sImpIIIyIng LIe procedures of citizens travelling between the two countries. I n February 2011, Myan- mar established air link with Cambodia with its Myanmar Airways international (MAI ) yIng beLween Yungon und Siem Reap, an ancient city in Cambodia. TIe IgIL servIce wus exLended to reach Phnom Penh, capital of Cambodia, in November 2011. The airlines extension to Phnom Penh has created a long-term cooperation between Cambodia and Myanmar on tourist, culture, trade and in- vesLmenL, omcIuIs suId. The direct air link between Myanmar and Cambodia was introduced after the 4 th Ay- eyarwady Chaophraya-Mekong Economic Cooperation Strat- egy (ACMECS) Summit and 5 th CLMV Summit in November 2010 which was aimed at de- veloping tourist industry in the subregion. The Philippines and Myanmar also signed a visa-free agree- ment during the state visit of President U Thein Sein in the Philippines this month, while in October a visa exemption agree- ment for ordinary passport holders was signed by Vietnam and Myanmar. Myanmar and Laos signed a reciprocal 14-day visa exemption for ordinary passport holders in 2006. I n October, the Thai cabinet also approved a draft proposal to waive entry visa requirement for Thai and Myanmar citizens, making short-term visits by air. During a parliamentary ses- sion this August, deputy minis- ter Tin Oo Lwin said Myanmar will try to sign visa exemptions with other ASEAN countries in LIe nexL hscuI yeur. Myanmar signed an agree- ment with Cambodia, I ndo- nesia, and Philippines in J une during the World Economic Forum to develop a smart visa system for the development of tourism in the region. Kyaw Min Tourists ride an elephant past the ruins of Cambodias Bayon temple in Siem Reap. E r ik
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First Myanmar-Hosted ASEAN FM Meeting Set for January T Ie hrsL Myunmur-IosLed foreign ministers meet- ing of the Association of Southeast Asian Nations (ASEAN) has been set for J anu- ary 17 next year in Myanmars Bagan in Mandalay region. At the ASEAN FM meeting, Myanmar Foreign Minister U Wunna Maung Lwin will present the prioritised tasks to be undertaken by the regional group, un omcIuI oI LIe DepurL- menL oI ASEAN AuIrs oI LIe Foreign Ministry said. The ASEAN FM meeting will help promote tourism and bring more foreign investment into the country, U Aung Htoo, director general of the depart- ment, said. I n 2011, ASEAN leaders at their summit approved Myan- mar to take the ASEAN chair in 2014, which was taken over by Myanmar from Brunei on October 10 at the 23 rd ASEAN summit held in Bandar Seri Begawan. During Myanmars one-year term of the ASEAN chairman- ship, more than 240 regional meetings are scheduled to be held in Nay Pyi Taw, Yangon, Mandalay and Bagan. ASEAN adopted its Vi- sion-2020 in 1997 and is striv- Kyaw Min ing to establish the ASEAN Community in 2015. Myanmar became an ASEAN member in 1997. ASEAN comprises ten mem- ber countries Brunei Darus- salam, Cambodia, I ndonesia, Laos, Malaysia, Myanmar, Phil- ippines, Singapore, Thailand and Vietnam. Myanmar Summary Myanmar Sees More Than 300,000 Visitors in Seven Months M yanmar saw a total of 318,543 tourists visiting the country in LIe hrsL seven monLIs oI zo1, uccordIng Lo omcIuI sLuLIsLIcs. Of the travellers, 107,750 came by air, data shows. The number of tourist arrival is expected to increase at the end of this year as many foreign visitors are visiting Myanmar to attend the 27th Southeast Asian Games. Myanmar targets 2 million tourist arrivals in 2013 and up to 3 million in 2014. I n 2012, the number of tourist arrival reached 1.02 million, an increase of 200,000 compared wILI zo11`s hgure due Lo sweep- ing reforms in Myanmar. Authorities also granted visa- Kyaw Min on-arrival for visitors from 48 countries in a bid to lure more visitors. 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LOCAL BIZ 9 December 26, 2013-January 1, 2014 Myanmar Summary Contd. P 26...(SL Asia) Myanmar Business Today mmbiztoday.com Southeast Asia Opium Production Sours pc, Led by Myunmur Poverty pushing Myanmar opium output higher L ed by a 13 percent increase in Myan- mar opium cultiva- tion to 57,800 hectares (from 51,000ha in 2012), opium poppy cultivation in Southeast Asias Gold- en Triangle of Myanmar, Laos and Thailand rose for the seventh consecu- tive year, according to a UN Om ce on Drugs und Crime (UNODC) report released last week. The UNODC report, Southeast Asia Opium Survey 2013 Lao PDR, Myanmar, said despite erudIcuLIon eorLs, IIgIer yields combined with a rise in cultivation saw Myanmar opium produc- tion increase 26 percent in 2013 to an estimated 870 tonnes the highest since assessments by UNODC and the Myanmar govern- ment began in 2002. While production of opium poppy a key ingredient in the produc- tion of heroin and various other illegal drugs ap- peurs Lo Iuve IeveIIed o in Laos and remains low in Thailand, the survey shows increased produc- tion in Myanmar has caused the entire regions production levels to more than double since 2005. I n 2013, Lao PDR and Myanmar produced 893 tonnes of opium 18 percent of global opium production a 22 percent increase from 2012, and 2.7 times more than in 2005 when they produced 326 tonnes. A 15-year plan developed by the Myanmar govern- ment in 1991 helped reduce production levels for most of the 1990s and early 2000s, but since 2006 production has steadily increased. TIese hgures muke clear that we need to step up eorLs Lo uddress LIe root causes of cultivation and promote alternatives to poppy growing, said J eremy Douglas, UNODC regional representative, Southeast Asia and the PucIhc. We need to act quickly. The Golden Triangle is the geographic centre Shein Thu Aung of the Greater Mekong Sub-region, and plans are well underway to expand transport and infrastruc- ture and lower trade bar- riers and border controls across the region. The organised criminal net- works LIuL benehL Irom Southeast Asias illicit drug trade are well posi- tioned to take advantage of regional integration, Douglas said. The resurgence in cul- tivation and production may be fuelled by a rise in demand for opiates in lo- cal and regional markets, says UNODC. I n Myan- mar and Lao PDR, the use of heroin, opium and synthetic drugs remains high and was much higher in poppy-growing villages. Myanmar is Southeast Asias largest opium poppy-growing country and the worlds second largest after Afghanistan. Shan State remains the centre of Myanmars opi- um activities, accounting for 92 percent of opium poppy cultivation, with the rest located mainly in Kachin state. I n Lao PDR, the UNODC survey conhrmed opIum poppy cultivation in the three northern provinces of Phongsali, Xiangkhoang and Houaphan. The increase raises concerns among develop- ment agencies and gov- ernments that not enough is being done to provide alternative employment options to poppy farm- ers and improve liveli- hoods in impoverished Myanmar. Myanmar is the poorest in Southeast Asia accord- ing to the World Bank, and opium cultivation is a major source of income for many farming fami- lies, says the UNODC. UNODC said surveys of farmers in Golden Triangle poppy-growing villages show that money from poppy cultivation is essential for villagers threatened with food insecurity and poverty. Our survey shows a strong link between poverty and poppy cultivation, said J ason Eligh, UNODC Myanmar Country Manager. Opium farmers are not bad people, they are poor people. Money made from poppy cultivation is an essential part of Contd. P 21...(SL Asia) MasterCard Adds $25,000 to Train Women Entrepreneurs in Rural Myanmar MasterCard & Mercy Corps program sees an average 218pc increase in partici- pant knowledge of key business and fnancial concepts Kyaw Min PoIicemen and viIIagers use sticks and grass cutters to destroy a poppy eId above the viIIage of Tar-Pu, in the mountains of Shan State. D a m ir
S a g o lj/ R e u t e r s A merican payment network giant MasterCard said women entrepreneurs wIII benehL Irom u new funding to support busi- ness literacy initiatives in rural Myanmar. The additional $25,000 in funding from Master- Card will go towards the expansion of the busi- ness literacy program with Mercy Corps called Business and Financial Literacy for Success. The program educates small farmers and house- holds on basic business skills and money manage- ment practices. MasterCard said the grant will allow Mercy Corps to provide the second phase of training, which will include in- depth and targeted busi- ness advisory services, mentoring and links to hnuncIng Lo IeIp oo women entrepreneurs in the delta region start or expand their businesses. This partnership be- tween MasterCard and Mercy Corps has already seen more than 1,200 farmers and entrepre- neurs, the latter of whom are mainly women, ben- ehL Irom LIe hrsL pIuse of the Mercy Corps train- ing, Matthew Driver, Southeast Asia president, MasterCard, said. Providing training in fundamental business skills such as book- keeping and budgeting, promotions and cus- tomer service directly benehLs LIe purLIcIpunLs not only by helping them improve their business performance but also in achieving their goal of supporting their families and communities, he said. TIe hrsL pIuse oI LIe program that launched Contd. P 26...(MasterCard) Contd. P 26...(MasterCard) Myanmar Summary . , . ._ ~.~ ~ ~ _., . ..: ~ ... - . .e. ...~|. . ....q:,. (UNODC) . ..~..~q _.,.:.~ ~~ ..._,..~..._ -qe:.: ~~~~ e~~:q. _.. e...~ ~, q:..,. ~.~~.:.~: .~..-qe: .: ~~ e~~:~ q.: .._~:. .q._. _.,.:. .:~. . .~ ,e,.~....., ..: .q_~...~ ,.. .~....: ...~~~ _. ~~ .:. ._~: . . q._ . 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December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 10 Myanmar Summary Japan, Myanmar Sign Investment Pact Treaty to nurture business ties, improve protections: Ofcials J apan and Myanmar have signed an investment treaty to nurture closer business ties as the once se- cluded Southeast Asian country opens its fast-growing economy to more foreign businesses. Prime Minister Shinzo Abe and Myanmar President U Thein Sein signed the invest- ment treaty on the sidelines of a three-day special summit meet- ing in Tokyo between J apan and the Association of Southeast Asian Nations (ASEAN). J apanese businesses have been eager to invest in Myan- mar and have stepped up their activities here after Thein Seins reformist government came to power in 2011 after nearly 50 years of military rule. J apans trade ministry said the agreement is intended to provide greater protections and a stable legal environment for investors. Under the treaty, J apanese businesses operating in Myan- mar will be granted equal rights to local companies and Myan- mar companies doing business in J apan will receive the same treatment. The treaty calls for J apanese investors to receive the same protections provided to other foreign investors under inter- national rules and prohibits the imposition of export, technol- ogy transfer or other require- ments in exchange for such investments. I t is also intended to improve transparency, key for a country struggling with endemic corruption. Kyaw Min The J apanese government hopes to promote the business expansion of J apanese com- panies in Myanmar, a market closely watched for strong growth prospects thanks to progress in economic reform. At a joint news confer- ence after the signing, Prime Minister Shinzo Abe said the treaty demonstrates J apans determination to support murkeL-IIberuIIsuLIon eorLs by Myanmar. Myanmar President Thein SeIn suId Ie wus conhdenL LIuL the treaty would expand invest- ment opportunities for J apan. I LIe LreuLy Is ruLIhed by both countries, J apan will have concluded investment treaties or economic partnership agree- ments laying down investment rules with all 10 ASEAN mem- ber countries. The J apan-Myanmar invest- ment treaty includes a so-called investor-state dispute settle- ment system, one of the focal points of the ongoing Trans- PucIhc PurLnersIIp Iree Lrude negotiations. Attracting foreign investment and lending is crucial for aiding the expansion of Myanmars resource-rich economy. My- unmur Ius sIgnIhcunL growLI potential but is burdened with un InemcIenL Iurm secLor. L also lacks a manufacturing base after decades of foreign sanc- tions and restrictive laws under military rule. J apan is Myanmars largest aid donor. To help clear the way for the investment treaty, Tokyo agreed to forgive about $5.32 billion in debt owed by Myanmar and extended bridge loans to help clear the rest. Abe has promised to help support Myanmars economic and political reforms with both public and private help, including fresh loans for infra- structure building and major development assistance that will support J apanese business interests in the Southeast Asian nation. J apan had close ties with Myanmar before the junta took power in 1988 and Tokyo suspended grants for major projects. J apan did not impose sanctions on Myanmar in 2003 Myanmar's President Thein Sein (L) and Japan's Prime Minister Shinzo Abe shake hands at the start of their talks at the prime minister's ofciaI residence in Tokyo. K im im a s a
M a y a m a / P o o l when the military regime put pro-democracy leader Aung San Suu Kyi under house arrest, un- like the US and other Western countries, though it did scale back most business activities and cut government aid. J apans investments in My- anmar still lag behind those of China and I ndia, though that is fast changing. Trading compa- nies Mitsubishi Corp, Marubeni Corp and Sumitomo Corp are leading a project to develop the 2,400-hectare (5,900-acre) Thilawa Special Economic Zone, located near Yangon, J apans biggest investment in Myanmar so far. ., . _., .:. ~ ._ q .. ._. . . . ..:~_.~~..~:. .~.~ .q. .. _. . . .. :..q.. ...| .. . ..: . .:.~ . . ~ .~~ .:..q, ~~ ~ _e. ._~:. .q._. ~.q .~: ~:q ~e ~ . ~. . _e...: _.,.:.~.,_e ... :..q. e _e.~.~~..,. _.,.,_.. ._.:. ..,..:.~~~._. ..~.|.e ..: q ~ .:. ._ ~ .~ _. .:q ._..,.. ~.q.~:~:q ~e~..:..q: ....~. .. ... .. ~:. ~ ~ _ . .q~ _~: _.. . ._.. ~.,~~..:. .,.- ~, _~ ... q ~ ~:... _., .:. - ..~ ..,..,~. q..._..... q:..:~_.~~ .~.~.q.. ._~_.._e.._. ....|. ~ ,..|. .. ~. .q~ . .. . ~_. . ~~~ . . . ~ ~q. .:.~. .q. ~ . .. .q.~:~, .:. ~ .~....:._.. ~.,.._ .,....,..:.~.,_e _.,.: . ~ q .. ._. . . .:. _~._ . .,.- ~,.e.q.~,_~._:,. ._.:_~:..~ ~q e. ..:~ _ .~ ._ ...~:..,..: ~~:~~e .:.~:. .:~..... :...__e. .. q .. ._. . . ..:.~~ ~ ~_ _ . . q ..: ~q:.~ . .. :..q.~. .~~, . ~. . ._ . _e. ~_ .:..._ e . q ._. ~. .|..:~ _ .~ .:.. .~:~ _ _., .:. ~ . .. :..q.. . , ..:. ..: q ~ .,..: ., . . , ..:.~., _e _._~...,..:.. ~,.~ ~. ~.q.~ qq . :.. ._ _e. _. . ., . ~ . . , ...: q ~ .,..: _., .:~ . ~ .:.~.,_e ._ . ~.:.~ ~. ~.q..:.~ qq . :.._ e . q._ . _., .:. q ., . . q .. ._. . . . .:.. ~_.:.q..._.....:. .:~. qq ._ ~_._ _._ . q: ._ .~. . .:. ,_.._:.._.:.......:. ~. q ._ ~.~ .:.~~ . qq ..: q ~ .:.q,~~~._. e...:~ .:.. ~ e, ~ ..... :.. ._ _e. ._ . ~_. ~~.~_..:.._..,: .:._e ,,.~,.,q..: _.,.:. ~~ ~ ._ . . . ._. .:. ~_~ ~ .~~ .:..._ _e. ._ .., ~. .q . _.,.:.~ .,~.~.:.- ..,..:. ..~ ~.~~.:.. q, ..:.,.:.._~:. .q._. _ ., .:. ~.,_ e . .. :..q._. _ . ._.: .. . .:.~ ~ .~~ . .:.._~: e _e .~.~~.~.:.~.:.~:..:. ._.q.,._ ...~~~..._._e. ._._.,.:.- ..~..,..,~ e...:~_.~._ .,. ~~ ~ q .. ._. . . . ~. ~.. ..~: . .:.~ ..e,~.....:.._e .. ~.,_e e_~_._~:. ._.:_~:.. ._. _ ., .:. ~.,_ e . _ .:.~~ ~_ .:.. .... .:.qq . ._ e _e . ~.~~.~~~ .:..:~~._.. ._ ~.:~ ~. . :.. _ e. ._ . _.,.:.._ e_e.~.~~.~.:. ~.:.~: . . :. q .,..: ._ . .~...q.~_.~,~...~_ . :.~ ~:.,_ .. ~ . :.q .,... ._. ~q..:.~..q.~....q.~:~, . :. ~ .~ . . ..: . . ._ . . ~._ .: .~. . :.~ _ . . . . ._ ~~ ~ _._ .. .:.~._ ._., .: . . .~ . .q.~ _ ., ._ ~_ ..:~.:._~._. .,.._ _ ., .:. . ~~ ~_ ..| .. :.. : .:~....:._.. _.,.:.-. .q.. . .. :..q._._. ._.: .. . .:. ~._.~.:~~.~~~_.:. ~:. ., . . ~ _ .... :.._ e .,.-~,_~..._e.. q~~: ..~~~_.._..~.,:~..:.~ ._....:..q..~...:.~._e..: ....._. Under the treaty, Japanese businesses operating in Myanmar will be granted equal rights to local companies and Myanmar companies doing business in Japan will receive the same treatment. LOCAL BIZ 11 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Business Today mmbiztoday.com STADA Expands its Business Activities into Myanmar Su Su G erman pharmaceutical producer STADA Arz- neimittel AGs products are now available in Myanmar, making the company one of the hrsL wesLern pIurmuceuLIcuI companies to take up activities in the Southeast Asian country. The company said its local purLners ure now oerIng STADA products, including both generics and branded, on the market via in-licensing. TIe producL runge on oer will be expanded gradually, STADA said. Myunmur hLs perIecLIy InLo our strategy of continuous internationalisation while fo- cusing on high-growth emerg- ing markets in the process, HurLmuL ReLzIu, cIuIrmun oI the executive board of STADA Arzneimittel AG, said. Now that the country has opened up, the supply of medicines in the market with a population of 60 million shows substantial pent-up demand, particularly for high-quality, low-cost medicines. We intend to be present from the beginning. The licensing model and our experience in Asia have provided us good op- portunities in the future market oI Myunmur, ReLzIu suId. STADAs commitment is very forward-looking, said Chris- tian-Ludwig Weber-Lortsch, ambassador of the Federal Re- public of Germany to Myanmar. Everyone InvoIved benehLs from the Burmese market open- ing up. German companies like STADA can penetrate a growing market with future prospects. The population, on the other hand, gains access to a high- quality yet low-cost supply of medicines. The production of medicines for Myanmar will commence from the end of 2015 in a newly built production facility in Yan- gon hnunced by IocuI purLners, STADA said. To that end, Stada Myanmar J oint Venture Co Ltd was founded; the STADA Group has no shareholding in this company. The licence agreement, how- ever, gives STADA the option of taking over the company at a later date. Until then, the My- anmar market will be supplied with products from the Viet- namese production facilities of the STADA Group. STADA Arzneimittel AG is a publicly-listed company with headquarters in Bad Vilbel, Germany. The group is the only independent generics pro- ducer in Germany. Worldwide, STADA Is one oI LIe hve Ieud- ing companies in the generics industry and is represented in more than 30 countries with approximately 50 subsidiaries. n hnuncIuI yeur zo1z, STADA achieved group sales of 1.83 billion, adjusted earnings before interest, taxes, depreciation and amortisation (EBI TDA) of 367.5 million and adjusted net income of 147.9 million. As of December 31, 2012, STADA em- ployed 7,761people worldwide. The logo of the pharmaceutical company Stada Arzneimittel AG is pictured at its headquarters in Bad Vilbel near Frankfurt. A le x
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December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 12 Myanmar Summary Myanmar: Year in Review 2013 Michael Nesbitt F rom the announcement of winners of the inaugural international telecoms tender to the awarding of lucra- tive oil blocks, as well as the ongoing challenge for peace in the Kachin and Rakhine states, 2013 was not short of headlines for this once-isolated nation. A year after the passing of the Foreign I nvestment Law, the role of Chinese investors has dImInIsIed wIIIe LIe ow oI funds from the West and other ASEAN members has increased. An i mpr oved pi ctur e Throughout 2013, the US government eased sanctions, which has increased inter- esL Irom US hrms IookIng Lo tap into the frontier market. South Korea and J apan further extended their reach to the country and will play a vital role in the evolution of the economy, with investment commitments across infrastructure, the de- velopment of special economic zones and the announcement, in J une, by J apanese Prime Minister Shinzo Abe to cancel debt amounting to $1.74 billion. IberuIIsuLIon oI LIe hnuncIuI sector could hasten develop- ment and further boost foreign investment. The Central Bank of Myanmar (CBM) gained independence this year, while steps have been taken to adopt new exchange rate mechanisms, liberalise the insurance market and set up ATMs nationwide. Another key development is the governments commitment to establish the Yangon Stock Exchange (YSE). The exchange is being set up with the over- sight of Daiwa Securities Group, the J apanese government and Myanmar Economic Bank, and is expected to open in 2015 in line with the commencement of the ASEAN Economic Commu- nILy. AILIougI LIe hnunce sec- tor is maturing at a rapid rate, considering that the majority of transactions were previously handled in cash, many experts believe it will be a challenge to launch the YSE by 2015. I n J une, U Htay Aung, the minister of hotels and tourism, unveiled the Tourism Master Plan (TMP), which set out a goal of boosting annual tourism receipts from $534 million in 2012 to $10.8 billion by 2020. I n a year that saw property and hotel rates skyrocket, with aver- age expenditure on accommo- dation at $200-299 per night in Yangon, onlookers will be keen Lo see LIe eecL LIe proposed plan will have on room rates and availability. As part of the TMP, the tender for Hanthawaddy I nternational Airport was awarded to a South Korean consortium in August, valued at $1.1 billion. Viewed as a critical step to boost tour- ism and trade with the Asian Development Bank (ADB) estimating arrivals to reach 5 million by 2020 the airport will be situated 80 kilometres (km) north of Yangon and have the capacity to host 12 million arrivals annually, with room to eventually expand to 30 million. Meanwhile, foreign direct investment (FDI ) rose to $2.7 bIIIIon In hscuI yeur zo1zJ1 (ended March 2013), up from $1.9 billion in 2011/ 12, accord- ing to the World Bank. Oil and gas revenues continue to drive the economy, with GDP growth of 6.5 percent for 2012/ 13. I ncreased natural gas ex- ports from Shwe and Zawtika gus heIds, LIe openIng oI LIe 2,000km Myanmar-China gas pipeline in October and the unnouncemenL LIuL o osIore blocks will come on-line in early 2014, means that the energy sector will continue to play a key role in driving projected GDP growth for the 2013/ 14 hscuI yeur, wIIcI LIe ADB Ius forecast at 6.8 percent. While the retail and construc- tion sectors expanded with hotels, shopping malls and apartment buildings being erected throughout Yangon, Mandalay and Nay Pyi Taw, more can be expected from ag- riculture, telecoms, mining and manufacturing in 2014. Prospects for economic growth are improving as mod- ernIsuLIon, mIcrohnunce und new laws take shape. FDI in the mining sector has lagged due to red tape and transparency issues. However, government plans to implement the Extrac- tive I ndustries Transparency I nitiative (EI TI ), as well as a new mining law due to be passed in March 2014, which means that foreign participation is set to rise steadily. The r oad ahead Access to quality health and education remains a major challenge. Notwithstanding, InvesLmenL Ius rIsen sIgnIh- cantly in these sectors since the appointment of President U Thein Sein, though the major- ity of aid to the population 70 percent of whom live in rural areas is still provided by non-governmental organi- sations. Another issue is the recenL jump In InuLIon, wIIcI reached 7.33 percent in August due to high prices for food, gas and electricity, according to the Central Statistical Organisation for Myanmar. Although the government has received international recogni- tion for taking measures to en- hance transparency, the coun- try still has a long road ahead in rooting out corruption. Ranking 157 out of 177 countries in the Transparency I nternationals Corruption Perceptions I ndex 2013 an improvement on its 2012 position of 172 investor conhdence wIII Improve IurLIer with more commitment by the authorities in this area. Looking ahead, the govern- ment and the CBM will need to keep a watchful eye on various indicators, and with upcoming state elections nearing, 2014 promises to be a key year. Michael Nesbitt is Editorial Manager at Oxford Business Group. ~_._ _._ . q:.~ . e .q..~: . .q~:.:.~:. ~ .|..'. e _. . ~ .| ~.qq._ ..,..:.~:. ._~_: . _.. .q, . . ~ ~ .:.~:. . . ~ q, ~~ ~ ~ .|..'. _.. ~ .|.~:_. ._ ~ . ~ .:.~:. ~ _., . .:.. ._ ~._._,e. q._._,e~~. _ e. . :..,._ _ . .. . ..q.~~ ~ . , ..'.~ .:.~.q ._ ~.~ .:._e ~~, ...._ _.,.:.~~~ ._.:.q:~.:.~_.:.q . ._ . . _.:.q .. ._. . . . ...~ _._:, .. _. . ~. . . ~_~:~ ~,~q..._... ..:.- q..._.....:. ~..._.. ~.,:~ . . ~.q .~: ~:q ~e ~..:.- q..._.....:.~ .. ~ .~~ .:. ._ . ~~, . . . ~. ..:~~ ~..q~,~..q. ... :. .q.. ~ . . .:.~ ._e..: .... _. . ~.:. ~.: .~: . .:. q .,..: _., .: ...~ ~ ~ ._ . ~..q ~, ..,..:.- .~~.:.. ..q.:.. .._. .~:~q.e:.. .,.~. ,. ~ - _., .:. ~ .. . , ..:.~ .,:~ . ~ .. . . ~ . .:._e . .. :. .q.~.~~._.:...~ ~.~~ ..:~_. .|~ .:._ _e. _. . ~._.. ~..:~ ~~ ~_~ q .. ._. . . q, ..:~ _ .~ .:. ~ .. .. :..q.~ , e_e.~.~~.q...:q~..:. ., ~,_~... q~~:..~ _.,.:.. ., . ~:. ..... q, ~, q .,._ ~..q~,..'.: ~., .e~:. .e e~ .... .:.. : _., .:. ~~ ~ ~. ~.. ..~: ..:.. _ e. ._ . _:.q.~_~:. ...~.~.. ....:q~.:.._..~ ._.:. q..._....~q,~e,~ .._..:. .:.._.. .,:~.q..._.....:. ~._. qq.:q,~~~ ...: .:..eeq._. _ ., .:. .~: -e ~ ~.,_ e e...~ ...,q.~_.:._.. . . . e . .,. .. ~. q. ~:.. ... ~ ~ ~:. . . . ~ .. . : ..: q ~ .: ..._.. .~.~,.~ .~~~. ~~ .:. ~. ._..:. q, _~ ... .. .:. ._ . q . ._ .q, ~ , ..~: ~ . . , .~ ._. ~~ ~ e..~_.: . :.q, ..: . , .:.._ ._:.q. ._ ._.,..:.,._e ..~.~~ .~: .. , .:..: ._ . e. ~ ..,.~.~.~:.:..:.~ ..:. _e.: ..:q~.q_.. ~..~. .:.~ ~..|~.~._ q,~, ..~: ~ . . , .~ e . . ~_ .: q, ~~ ~ . , ..'.~ ~. . . _e. ._~: . e _~_ _~._ .e ~e . .q .. :..: .q.~,_~._:, ~,_~. .._..~:~ ~,.~ .q..:..:.q...,.. q: ~...,.~.~. Tourism Master Plan (TMP) ~.q.~ ~ .e:._.:_~:.._.. ~~ ...~ .q. .:..:. .q:~q.:.. ~.. ~.. q~,..'.: ,, ..eqq.._. ~~ ...~ ~..q~,..'.: ~~. .e~ qq.q, q_.,. :.._ .q .. :.. . , .. .. q: ~ .~. ~. ~. q. . _e. ._ .~ . _. ._.. e ~e ~., ...:. ~. , _. .:. .:. .. q, ~ , ~ ~. _~: ~_.. .q~~~~ ~..q~,..'.: ~~ . ..'.:_~:. ~,~.:.._ ~ ....,..:. _.~~.:._.. e. ..:...: .q..:...,.... q: ~.~.~.~ ~.,..,.:. .:.. ~., .qq . . ~._.~.,.:. ~..' .~:..,..: ~~..~ .q:~ . .:. q .:q, ~~ ~ ._ . ..: .,.:._~._. While the retail and construction sectors expanded with hotels, shopping malls and apartment buildings being erected throughout Yangon, Mandalay and Nay Pyi Taw, more can be expected from agriculture, telecoms, mining and manufac- turing in 2014. S o e
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T u n / R e u t e r s REGIONAL BIZ 13 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Business Today mmbiztoday.com A man walks past a signboard of Mitsubishi UFJ bank at its branch in Tokyo. K im
K y u n g - H o o n / R e u t e r s Jupun's MLIG ucqoires ,pc oI Thui Bank of Ayudhya Taiga Uranaka M itsubishi UFJ Finan- cial Group (MUFG) said on Wednesday last week that it has acquired a 72 percent stake in Thailands Bank of Ayudhya Pcl for 170.6 billion baht ($5.31 billion) uILer concIudIng u Lender oer recently. MUFG, J apans largest lender by usseLs, mude un oer beLween November 7 and December 13 to buy up to 75 percent of Bank of Ayudhya for as much as 560 billion yen ($5.44 billion). The deal will mark the biggest acquisition by a J apanese bank in Southeast Asia. MUFG is planning to merge its existing Thai operations with the domestic lender to comply with Thailands single presence policy on bank ownership. The acquisition and merger plan had surprised J apanese rivals, given that MUFG already had substan- tial operations with J apanese businesses in the country. MUFG has the biggest over- seas operations among J apans banks. I n 2008, it bought out UnionBanCal Corp, the holding company for California-based UnionBank, and paid $9 billion for a 20 percent stake in Mor- gan Stanley. I n 2010, it acquired a $6.4 bil- IIon projecL hnuncIng Ioun book from Royal Bank of Scotland. Reuters Kia Says to Produce Record 300,000 Cars in Slovakia in 2013 Robert Muller S outh Korean Kia Motors will produce a record 300,000 cars at its plant in Slovakia in 2013 as the fac- tory ran at full capacity for the hrsL LIme In seven yeurs, LIe carmaker said on Wednesday last week. The plant in the northern part of the country is one of the euro zone member's biggest export- ers. I t mostly produces versions of the Ceed small family car, the Kia Sportage SUV and Kia Venga mini car designed for European and Russian markets. Slovakias automotive indus- try which represents a big driver for the central European countrys economy is based around assembly plants of Kia, Germany's Volkswagen, and French PSA Peugeot Citroen. Kia, which launched its plant in Zilina in 2006, said in J anuary it planned to produce 290,000 cars in Slovakia in 2013, just shy of its better-than- expected record 292,000 made a year earlier. Our production has risen continually over the past seven years, Eek-Hee Lee, president and CEO of Kia Motors Slova- kia, said in a statement. We will continue with this success in the next period. So far this year, 22 percent of output at the assembly plant was exported to Russia, with Britain as the next biggest for- eign market at 13 percent. I n J uly, Kias local company chief Lee said the launch of new models had helped the carmaker weather weakening sales in Europe that had hit most other producers. Reuters Myanmar Summary ~~, . . . ~ .~: ~ q.e:.. . ..:.~:~:...,._~._e...: Kia Motors - ..-~~.e:..~,. ..:.~:~:.~...q..|. ,~~~~~ ~~~...:..._...~,~., _e ..~~. ..... ~_~ . ~_e. . . ...: q_ _ ._ ~. :_e . . ..:.:..._~:. Kia . .,.._~.~~ ._.:_~:..._. .. -~ ~ .e:.. ._ .:~ . .q .~,. ..:.~:~:..:. ~... ~.,_e e , ~ , ~e ~ . .:.~~ ~ ~_~... ..:.~:~:.~..~.. ~_e. q.~_.:._.. ~.:.~:._e Ceed ..:....~:.e.:. Kia Sportage SUV . Kia Venga ~:..~.:.~ .q:.. ,q:.... ~~.:.~~~ ~.:.~:._e ~ ..._~:. .q._. .. -~ ~ .e:.q ..: .~: ~:..~ , ._ ~.e .q:.. _e. ._ .. -~~.e:.- ...:..q.~~~ ~.~ ..: .. . ~. .~_e. q.,_. . Kia - ..: .~: ~:.~. . ~ . . . . . , . .:. :.,- Volkswagen . _. .. . - PSA Peugeot Citroen ~~..'~ .~_.,._~:.._. .q._. Kia . ~~' ...~ ..:.~: ~:..~,~:. Zilina _ .~~_ .:..:q~._.. ~~, ...~ ..:.~:~:.~...q..|. ~~~~ ~ ~...q, ..:.._~:. ~,,~|q.~ Kia . ._.:_~:..._. Mitsubishi UFJ Financial Group (MUFG) ._ ... Bank of Ayudhya Pcl -..,.qee: q:..,.~:. .~. ~~.' .e ~..q~,..'.: .,~ . e , _e ~e e . ._~: . (MUFG) . ._.:_~:..._. .,. :. . . ~q ., . -~_~ . ..~_~.~.._e.._ MUFG ._ .~:. q~.,. .~:. ~, q~.,~~. Bank of Ayudhya - qee: q:..,.~ ~ee q,~~~ e,.. '~ .e ~..q~,..'.: .,, .e, _e ~. .. . .. ._ .e. . . , .~e e ...:~_.~._ ~.q.~: ~:q~ .,~~... ~_~..:. . . . . , .~e e . ~. . ~_e. ._ . .~.~:~~..__e.._. MUFG ~.,_e ,.- .~q .. ~~ .q . . , ..:.. _._ ~ . ~.:..._. ....|.....: q,~~~ _...,_.. ..- ~ . . . ~ ~. .~_.q. ~_. ..'.. ~ . ~ ,:..: q ~ q, ~~ ~ _e.._~:. .q._. December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 14 Asiun Locutions Overtuke Sydney in Globul List oI Most Ixpensive Cities Yasumasa Hisada A ustralian locations have now all fallen out of the global top 30 most expensive locations in the world for expatriates, the latest Cost of Living survey by ECA Inter- national revealed. Sydney and Canberra, both in the top 20 a year ago, now rank 31 st and 39th respectively. Melbourne has fallen 22 places to 45 th position globally fol- lowed by Adelaide (46 th ), Perth (47 th ) and Brisbane (54 th ). Of the Australian locations Darwin has fallen the most places to 55th place down from last years 26 th spot. Despite actual prices of goods in ECA Internationals shop- ping basket for Australia rising at a faster rate this year overall, LIe sIgnIhcunL weukenIng oI LIe dollar against most major cur- rencies means that Australian locations are becoming cheaper again relative to many other lo- cations around the world, said Anna Michielsen, general man- ager, Australia, New Zealand & PucIhc Ior ECA nLernuLIonuI. Asian locations including Beijing (15), Shanghai (18), Seoul (21) and Hong Kong (28) are among those that now rank higher up the list of most expen- sive cities for expats. To ensure that their employ- ees spending power is not compromised while on interna- tional assignment multinational companies will often include a cost of living allowance in their pay package. Living costs for ussIgnees ure uecLed by Inu- tion, availability of goods and exchange rates, all of which can Iuve u sIgnIhcunL ImpucL on us- signee remuneration packages. ECA carries out two Cost of Living surveys per year, com- paring a basket of like-for-like consumer goods and services commonly purchased by assign- ees in 440 locations worldwide. Port Moresby has fallen 12 places in the ranking to 25th globally. Auckland, ranked 52nd, is the most expensive of the New Zealand cities. While Tokyo still tops the list of the most expensive locations in Asia for expatriates, glob- ally it has fallen to 10th place on the back of a weaker Yen a sIgnIhcunL drop Irom IusL yeur, when it was the most expensive city in the world for expatriate sLu. CompunIes LIuL need Lo IocuLe sLu InLo Jupun cun now do so for considerably less than in recent years, despite the Iong perIod oI deuLIon In LIe country being reversed earlier this year. TIe dIerence In LIe cosL of ECAs cost of living basket between Tokyo and Sydney fell from 31 percent to 12 percent over 12 months. After Japan, some of the big- gest falls in living costs in Asia have been seen in Indonesia also partly as a result of a weaker currency. While Jakarta has only fallen three places in the regional ranking to 27th, globally it has dropped 45 spots to 172nd place. Beijing is now Asias second most expensive location after Tokyo, up from 5th position last year. Globally, the Chinese capital is the 15th most expen- sive location for expatriates. Shanghai previously in 25th position is now in the 18th posi- tion in the global results, and 4th in Asia. Its important to remember Prices of some sample items from ECA Internationals basket of goods and services commonly purchased by expatriates, in AUD Location Movie Quick Can of Dozen Beer at Bananas Fresh Coffee Petrol ticket lunch soft drink eggs a bar (1kg) milk at bar (1L) (50cl) (1L) Sydney 18.36 31.02 2.65 5.08 8.28 4.41 2.24 4.33 1.66 Tokyo 20.21 16.46 1.75 5.87 10.73 6.11 2.9 5.07 1.88 Beijing 16.82 23.93 1.33 5.5 10.26 3.43 4.61 5.57 1.54 Hong Kong 11.6 20.06 1.34 7.17 10.16 1.78 3.94 5.22 2.47 Singapore 9.53 21.31 1.38 3.94 14.89 1.91 2.95 5.38 2.08 Rio deJ aneiro 11.68 25.05 1.2 3.33 5.03 1.78 1.56 2.95 1.51 Manhattan 15.58 29.37 1.85 4.71 9.07 2.24 2.87 4.66 1.26 Central London 21.14 30.53 1.57 6.42 9.41 1.53 1.65 4.62 2.39 Paris 15.7 34.84 1.68 6.18 13.3 3.06 1.95 6.19 2.4 Dubai 10.79 24.59 0.72 4.59 13.79 1.77 1.71 5.3 0.53 J akarta 5.69 17.15 1.1 3.01 8.05 1.94 2.23 3.32 1.08 Bangkok 6.96 17.16 0.75 3.05 8.37 2.08 1.75 4.26 1.47 that certain living costs, such as accommodation rental, utili- ties, car purchases and school fees are not included in our cost of living basket, continued Michielsen. Because these costs are usu- ally addressed separately by an expatriates employer, we collect this data separately. But if we were to include such costs, Hong Kong and Tokyo would be higher in the ranking, while Beijing would be lower due to lower housing costs. e.~.| _..._~..- _..:.~., _e ~.:.,..q~ ~_..:... .~,._..:..:q. ,~ ~ ..|~ Myanmar Summary .~:._~:. ECA International . .,:~ . . .~:~ e ~ _., . ._ .,..q~.q:..~..~q .q ._. Sydney . Canberra ~._ . , . ._ ~. . . ~ ~. : ., . .q ~ ~_..:... .~,._. ~ ~ . . _. . ..|~ . _. . e. ~.| ~. ,~, . ,, .,q:~ ~....q.,._. Melbourne ._ e.~ ~. ., e.~.| ~. ,, Adelaide ~ ~. ,', Perth ~ ~. ,, . Brisbane ~ ~. ,, . .,..q~_..:. ..: _..:..:q.~ ~.~.. .:.._~:. .q._. _..._~.._ ~.q:.~~e_... ._ ~.,~~e....,..:..: e. ..~....~ ~.~~..,. _.,., ..:._. ~_.:. ~.~.._~..,. .:.. ..eq:~ _..._~.. ..'.:~,e.~...~ _..._~.. - .,q:.:.~ ~.:~.~,.q ~_.:. .,q:.:. ~ .. . .~ .:.:.. ._~:. ECA International . ~_~. ~~_e.. Anna Michielsen ~ ._.:_~:..._. ~:q. ..~ ~.:.,. .q~ ~_. .:.. . ~. ~, q , e . .: ~. ~, ....: ~. ~, . .e:.~:. : ~. , ~_e. _~_.. ~. .|_. .:.~.,_e .q ._.:. ., . .:.~~ ~ .q ~ ~_. .:.. . _..:._e._~._~:. .q._. ECA . ~.... .,..q~ ..~.. .~ .~:~._.. ~.: ~.~,.q .,q:..|. ,,~ .q .:... . ~ ~ , . ~, ..: . .:.~:.~.:. ~:._e ~e e . ._ ~.~ .:.~ . . e_.._e.._~:. .q._. Port Moresby ._ .,..q~ ~_..:....:q.~ ~. , _ q.,_.. Auckland ._ ~. , _e.~: ,e.~.,- .,..q~ ~_. .:.. ._. .:.~_e. q. ~_ .,._ . ~~._ ~:q~ .,..q~ ~_. .:.. . . ~, ..,q:~. . ~_e. q.~_.,._e...:._. ~.:.. .q:~q e,..._~.~,e.~.. . ._~: ~. ~~, . ~. .. ._ . . .._ e. ~.| ~ ~ .,:~ ~ ~:q_ .~e.,..q~~_..:. . ..,q:~. . ~_ e. q. ~_ .,_. . .,.._..~ ~. , ~ q. ._~:. .q._. While Tokyo still tops the list of the most expensive locations in Asia for expatriates, globally it has fallen to 10th place on the back of a weaker Yen a signicant drop from Iast year, when it was the most expensive city in the worId for expatriate staff. R e u t e r s Source : ECA International REGIONAL BIZ 15 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Business Today mmbiztoday.com An investor looks at an electronic board showing stock information at a brokerage house in Shenyang, Liaoning province, China. R e u t e r s Chinu's Iqoities Seen Overtuking Indias in 2014 Clement Tan C hinese shares may be poised to become an unlikely star of Asian emerging markets in 2014, out- shining India, thanks to cheap valuations and optimism about reforms. Investors have been under- weight China for years. China-focused equity funds suw some neL Inows In Novem- ber, when the ruling Communist Party announced plans for far- reaching economic and social reforms, and analysts said once the government starts following through on those plans it would LrIgger u ood oI money. Foreigners have bought a net $18.8 billion worth of Indian shares this year, according to the market regulators data. OmcIuI sLuLIsLIcs ure noL pub- lished for China, but data from fund tracker EPFR shows a net $. bIIIIon ouLows Ior LIe year to December 11 for China- focused equity funds. At 9.3 times forward 12-month earnings, the MSCI China is trading at a chunky discount to its 10-year median and at its widest gap to the MSCI Asia ex- Jupun sInce LIe zoo8 hnuncIuI crisis. And the Chinese market is trading at a 40 percent discount to MSCI India on a forward price-to-earnings basis, ac- cording to Thomson Reuters I/B/E/S data. In contrast, benchmark in- dexes in India have hit record highs and valuations are on par with 10-year averages. Besides looking expensive, Indian shares could also be vulnerable to shocks that could come from the US Federal Re- serve winding down its stimu- lus, current account problems, and a general election due by May next year. At the very least, investors look unwilling to add more In- dian risk and will look to make fresh allocations next year in other markets, with China hrmIy on LIeIr rudur. Overall, we believe Chinese equities are just too cheap to be ignored by investors in 2014, said Desmond Tjiang, Greater China and Hong Kong equities portfolio manager at Pinebridge Investments in Hong Kong. Despite reforms and the broad economic slowdown, there are still a lot of industries such as mass consumption, e-commerce and environment- related sectors that should continue to grow exponentially in the coming years. Beijing last month unveiled a bold reform plan, including pledging to free up markets, in a bid to put the worlds second- largest economy on a more stable footing. The plan sparked a rally in Chi- nese sLocks LIuL suw LIe osIore Chinese market in Hong Kong gain more than 10 percent in four sessIons, beIore IeveIIIng o. Some brokers, such as CLSA, said the rally lacked conviction due to an absence of institu- tional investors. But while some may still be wary of a market that has been in a funk since 2007, there are signs things could be turning around. In a November 21 report, Goldman Sachs said funds fo- cused on global emerging mar- kets and Asia were underweight China by 290 and 582 basis points respectively, suggesting a return to equal weighting alone would trigger a powerful rally. India may have more upside potential in the short term because markets may rally into the elections due in May, but China represents better value in the middle term, said Angelo Corbetta, Pioneer Investments London-based head of Asian equities. Reuters ~~, ...~ ~:q-e_e..... ~~.:.~ ~,~.-qee:.:. ~.,_e . . ~, e .~~ .:. _. . ~ . e - qee:~,e.~. _..:..: .._~:. .q._. .~ q ~:~:q ~ , _.,. .|~ . . .. :. .q.. ...q. _._.._.:...~. ~.~:. _....:.._e ~_., ._~_:. _. ..,:~ ~, ~ . . q e e: ~,e..:.~.,_e .~:.~ ....,.~~.:.._~:. .q._. . .. . .:.~ ._.:_~:..~ ~q ~. .q ~.,_ e ~. .| ~. ~. .:. ~:. .~ ..: q ~ . ._ . . ~~ . .~.~..:. q.:.._~:. .q._. ._.:..:..:.~.,_e e...~ ~..q~,..'.: ~. .e~ ~. ._.~: ~ . eq e e:.:.~ ~e e . ._~: . ...~ ~ . ._~ ._~. , .. . . . ~.~~.~.:.~q .q._. ~,~. ~ ~q:.~.:q.~. ~.~ ~.~ .:.~ ~ _., . .q ..: ._. EPFR . ~.~ ~.~ .:.~q ~, ~ . - q e e:.:.. ~..q ~, ..'.: . .e~ ~.:.~ qq . ._~: . . q._ . ~, ~ . ~., _e _._. ._.: .. .q.~. ~. ._~: qee:~,e..:.._. ~~.:. ._~.,~:.~ q.,._.~.e .q .~.~,.~,..:..: ~., _ . .:.._ ~.,~:.~ q .,_ . . qee:~,e..:..:._. ~~ ..~: ....~, e ..:q.,._~:. . q._ . ~ . e- q e e:.... , ..:.. : ~, e . _. .:...: ._. US Federal Reserve . .._~....:.~.~. .:.~:. ~q,..:..~. .~q _:.q. _..,:.:.. .:._.. ...~ _...._ ~...q..~:~.~ ._~: .~_._._e..:.._~:. .q._. December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 16 Myanmar Summary China Needs Western Help for Nuclear Export Ambitions China seen better at building reactors than making proft David Stanway C hinas investment in Brit- ains 16 billion Hinkley PoInL projecL Is ILs hrsL foray into Europes nuclear power market and a marker of its global ambitions, but its hrms wIII depend on IoreIgn purLners II LIey ure Lo IuIhI them. China General Nuclear Power Group (CGN) and China Na- tional Nuclear Corporation (CNNC) plan to take a com- bined 30-40 percent stake in a consortium led by French utility EDF to build French-designed EPR reactors in southwest England. China has the worlds largest nuclear building programme at home and hopes to leverage this into a nuclear export industry. While China has already built reactors for its ally Pakistan, HInkIey PoInL Is ILs hrsL nucIeur project in a developed country, and Beijing hopes the UK cre- dentials will help promote its two nuclear giants on the global stage. But industry analysts say gaps in the Chinese supply chain, fears of political interference and inexperience in the eco- nomics of nuclear power mean LIe hrms wIII sLruggIe Lo go IL alone. They are very ambitious, but whether they will be welcomed overseas is another question, said Li Ning, a nuclear power specialist and dean of the School of Energy Research at Chinas Xiamen University. I n Britain, for example, po- litical discussions behind closed doors about Chinese nuclear in- volvement concluded the public would not accept Chinese com- panies owning majority stakes in new plants and that initial participation should be capped at 49 percent, a source familiar with the discussions said. Chinas massive domestic nuclear new-build programme is one of the few bright spots in the global nuclear industry following the 2011 Fukushima disaster, which prompted sev- eral countries including J apan, They have no clue about interna- tional business. They have abso- lutely no clue how to make profit in nuclear. Germany, Switzerland, I taly and Belgium to close or phase out their nuclear programmes. After a post-Fukushima suspension lasting a year and a half, Beijing restarted its programme late in 2012 and aims to bring capacity up from 12.57 gigawatts now to 58 GW by the end of 2020. Nearly 30 GW of new capacity is under construction in China, more than 40 percent of the worlds total new-build. "Clueless on propt" Chinas regulators have long encouruged nucIeur hrms Lo build an entire industrial chain with global reach. After Fukushima, history has given China an opportunity to overtake the worlds nuclear energy and nuclear technology powers, Zhang Guobao, Chi- nu`s Iormer Lop energy omcIuI and a tireless advocate of nu- clear energy, told a September meeting of nuclear scientists, according to state media. China plans to bid for projects in Argentina and Turkey. But its domestic experience wont necessarily translate well overseas, said Arnaud Lefevre, head of French nuclear consul- tancy Dynatom I nternational, which has been involved in the nuclear business in China. All the business of nu- clear power plants in China is controlled by state-owned enterprises which are set up to produce power plants, not prohLs, Ie suId. They have no clue about in- ternational business. They have absolutely no clue how to make prohL In nucIeur, Ie udded. Li of Xiamen University said LIe hrms wouId sLruggIe Lo hnd any immediate economic ra- tionale for their involvement in Hinkley Point, but they would look at it as a marketing tool. L Is LIe hrsL muLure nucIeur market for China to work in, and it could help in other re- gions, he said. Fr ench, US par tner s CNNC and CGN will both be involved in Hinkley Point, but getting the two sides to collabo- ruLe Ius proved dImcuIL. RecenL governmenL eorLs Lo geL LIem to join forces on a single Chi- nese reactor design have so far been fruitless. The government intention- ally put them in competition for markets, so obviously there will be a certain amount of hostility between the two sides, said Li, adding that on international markets this might put China at a disadvantage. CGN is the longtime partner of EDF, which is helping it build two Areva-designed EPR reactors in southern China, and specialists were surprised to see CNNC pop up as a partner in Hinkley Point. CNNC has teamed up with US- based Westinghouse, owned by J apans Toshiba, which will see LIe worId`s hrsL AP1ooo reuc- tor model go into operation in China next year. Even if they succeed in win- ning bids for new reactors, CIInu`s hrms mIgIL sLruggIe Lo secure supplies of nuclear fuel. While CNNC has its own sup- plies and processing capacity, CGN will still have to collabo- rate with the French. Everybody sells nuclear power plants with 20 years of fuel included in the contract, said Lefevre. CGN cannot do this. Li said all this meant that China was unlikely to risk go- ing it alone in the foreseeable future. You may vie for the leader- ship of a consortium, but in the end, to get it completed, you need the supply chain of a global consortium, he said. Reuters ~,~.- .~:...| ~' .e~,e.q._ _-~,q Hinkley Point ..~,.._ .q:...~.. e:....~:....~~~ ..... ...._~:...~.q._e._.. ,.- ..,..:.~.,_e ._.:.~~.~ . . , ..:.. ....| ._ ..~. .e:. . . .~:.. . , .~:. . . . ..: q ~ .:.ee._.q._. 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P lu n k e t t / R e u t e r s REGIONAL BIZ 17 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Business Today mmbiztoday.com A man makes a phone call while standing near a Reserve Bank of India RBI crest at the RBI headquarters in Mumbai, India. R e u t e r s India Cbank Surprises by Keeping Interest Rates on Hold Suvashree Dey Choudhury T he Reserve Bank of I ndia (RBI ) unexpectedly kept the countrys policy inter- est rate on hold on Wednesday last week, despite calling cur- renL InuLIon Loo IIgI, cILIng the prospect of easing retail prices and its concerns about the weak domestic economy. The RBI had been widely expected to raise the repo rate, after lifting the countrys main lending rate by 25 basis points each at its previous reviews in September and October. I t instead opted to keep the coun- trys main lending rate at 7.75 percent. Benchmark 10-year bond yield dropped 12 basis points to 8.78 percent from levels before the decision, while the NSE share index gained more than 1 percent. The I ndian rupee strengthened. However, the central bank warned it would remain vigilant on InuLIon und LIuL IL wouId be ready to act even in between policy reviews should headline or core InuLIon noL euse us expected, albeit noting it would do so in a calibrated manner. The RBI added it would also gauge the impact from any decision by the US Federal Reserve to start withdrawing its monetary stimulus. The US central bank concludes its policy meeting later in the day. The policy decision is a close one. CurrenL InuLIon Is Loo high, said the RBI in its policy statement. However, given the wide bands of uncertainty surround- Ing LIe sIorL Lerm puLI oI Inu- tion from its high current levels, and given the weak state of the economy, the inadvisability of overly reactive policy action, as well as the long lags with which monetary policy works, there is merit in waiting for more data to reduce uncertainty. The most recent data showed consumer prices posted their biggest annual rise on record in November 11.24 percent wIIIe wIoIesuIe InuLIon IIL u 14-month high last month. SurgIng InuLIon ure beIng driven by higher vegetable pric- es that hurt the countrys poor the most, and are thus posing another headache to the embat- tled Congress party, which is facing general elections due by May, and was drubbed in recent state polls. Still, analysts have said the surge in prices of vegetables such as onions are largely im- pacted by I ndias lack of reliable ways to transport the produce and by traders suspected of hoarding supplies to raise prices, limiting the impact of monetary policy. For businesses and investors in Asias third-largest economy, the priority had been a recovery in growth, which would help I ndia again attract investment und Inows LIuL wouId IeIp conLuIn u currenL-uccounL deh- cit that surged to a record high In LIe IusL hscuI yeur. Wholesalers have also been saying vegetable prices have eased this month, providing some poLenLIuI reIIeI on Inu- tion, though analysts warned prices could again spike. I think it is just postponement of action, because the policy clearly says they (the RBI ) may take action any time, even in the interim between two poli- cies, if the situation warrants, said Rupa Rege Nitsure, chief economist of Bank of Baroda in Mumbai. Reuters .~q .._~..e:....,._..:._.. _._~....:..q.~:.,_..~~..' . .q . . .:. q .,..: ._. .~ . ... . , . ..: .. .:.~:. ..: .q, ..: . , . .~._~: Reserve Bank of India (RBI) . .- ..'..~~..,. :.~:. ...:. .~.~ ,....:.._~:. .q._. RBI . repo .,.:.~:. _.~ q,~~~ ..:.,.:.._.. .- ~. ~. .. .. , .:.~:. .~ ~ :.. .~:~ ~ :..:.~ ._ . 25 basis points _.~.._. RBI . .- ~.~.....,.:.~:. . q:. . , .~ :.q :.._~: . .q._. .._e~.~...~q.... ~ .~.~ ~~ .. .~~...... .:.. .:.. : 12 basis points ~. . ._.. . q:..,._e.._~:. .q ._. NSE q e e: , . ~ , . .:. . : ~ q:..,..~: ~~.:_.. ~.e- ,...._~..: ~,e..:.:.._~:. .q._. ...:._. -e~. .._~..e:...~:. .~~qe_e ..:_~_q.__e.._~:. .._~. .e:...-e~.~.: ..:.,.:. ...:~ ~...:..._.e~ ._~:. .~....._. US Federal Reserve . . ._~.. ..: . ~. ~. .:.~ ..:.q, .._e~.~._~: .~ .q:~ . .:. ~ ._ . ~.~: ~~.~.:.qeeq._~:. RBI . ...:.._.:_~:..._. e. .~ q . ._ ~..e: .. . . , . _..:..._~: ....:..qq:..:. q.,_.. ...:..q..:._. ~~:. ..~: .. , ._ ~.,~:._e. .,.. ..'.. ~ . .. . :._ . .. ..: ~..| ..'..~:. ~...._~: ..:.....:.._. q.,._~:. .q ._. December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 18 People participate in the so-called "Last demonstration with illegal marijuana" on their way to the Congress building in Montevideo. A n d r e s
S t a p f f / R e u t e r s Uruguay Becomes First Country to Legulise Murijounu Trude Malena Castaldi and Felipe Llambias U ruguay became the hrsL counLry Lo IeguIIse the growing, sale and smoking of marijuana recently, a pioneering social experiment that will be closely watched by other nations debating drug liberalisation. A government-sponsored bill approved by 16-13 votes in the Senate provides for regulation of the cultivation, distribution and consumption of marijuana and is aimed at wresting the business from criminals in the small South American nation. Backers of the law, some smoking joints, gathered near Congress holding green bal- Ioons, JumuIcun ugs In Iom- age to Bob Marley and a sign saying: Cultivating freedom, Uruguay grows. Cannabis consumers will be able to buy a maximum of 40 grams (1.4 ounces) each month from licensed pharmacies as long as they are Uruguayan residents over the age of 18 and registered on a government database that will monitor their monthly purchases. When the law is implemented in 120 days, Uruguayans will be able to grow six marijuana plants in their homes a year, or as much as 480 grams (about 17 ounces), and form smoking clubs of 15 to 45 members that can grow up to 99 plants per year. Registered drug users should be able to start buying mari- juana over the counter from licensed pharmacies in April. We begin a new experience in April. I t involves a big cultural change that focuses on public IeuILI und LIe hgIL uguInsL drug LrumckIng, Uruguuy`s hrsL Iudy, SenuLor uciu Topo- lansky, told Reuters. Uruguays attempt to quell drug LrumckIng Is beIng IoI- lowed closely in Latin America where the legalisation of some narcotics is being increasingly seen by regional leaders as a possible way to end the violence spawned by the cocaine trade. Rich countries debating legal- isation of pot are also watching the bill, which philanthropist George Soros has supported as an experiment that could pro- vide an alternative to the failed US-led policies of the long war on drugs. The bill gives authorities 120 days to set up a drug control board that will regulate cultiva- LIon sLundurds, hx LIe prIce und monitor consumption. The use of marijuana is legal in Uruguay, a country of 3.3 million that is one of the most liberal in Latin America, but cultivation and sale of the drug are not. Other countries have decrimi- nalised marijuana possession and the Netherlands allows its suIe In coee sIops, buL Uru- guuy wIII be LIe hrsL nuLIon Lo legalise the whole chain from growing the plant to buying and selling its leaves. Several countries such as Canada, the Netherlands and I srael have legal programs for growing medical cannabis but do not allow cultivation of marijuana for recreational use. Last year, the US states of Col- orado and Washington passed ballot initiatives that legalise and regulate the recreational Myanmar Summary use of marijuana. Uruguays leftist president, J ose Mujica, defends his initia- tive as a bid to regulate and tax a market that already exists but is run by criminals. Weve given this market as a gIIL Lo LIe drug Lrumckers und that is more destructive socially than the drug itself, because it rots the whole of society, the 78-year-old former guer- rIIIu hgILer LoId ArgenLIne news agency Telam. Uruguay is one of the safest Latin American countries with little of the drug violence or other violence seen in countries such as Colombia and Mexico. Yet one-third of Uruguays prison inmates are serving time on charges related to narcot- Ics LrumckIng LIuL Ius Lurned Uruguay into a transit route for Paraguayan marijuana and Bolivian cocaine. I f it works, the legislation is expected to fuel momentum for wider legalisation of marijuana elsewhere, including the United States and in Europe. Decrimi- nalisation of all drug possession by Portugal in 2001is held up as a success for reducing drug violence while not increasing drug use. This development in Uru- guuy Is oI IIsLorIc sIgnIhcunce, said Ethan Nadelmann, founder of the Drug Policy Alliance, a leading sponsor of drug policy reform partially funded by Soros through his Open Society Foundation. Uruguay is presenting an innovative model for cannabis that will better protect public health and public safety than does the prohibitionist ap- proach, Nadelmann said. Reuters ,...._ ..... ... ._ .:~ ~q:.~ .q: .~e ~. ._ . .._ .~.._e..:._.. ~_.:. ..:.~.,_e._. ..e....~|. .:.~:. ..: ..| .... . .~ .~ _ ........:. _...~: ~,.~...: _~_.,_~._~:.._. .q._. ...._.:~~.q.~:. ..,~~ ~. ~ . .. _. . . ~.q~~ ~ ~' . ~, ._e ...._.:~.:.~:. .~.. . _e,_e... ....~~:. ~q:. ~_....q, ~~__......_~:. .q._. ... ._ .:~ . .. . .:. ~.,_ e ..~...:.._ .....:. . ...~. ~.:... ...._.:~ ,~ q. ~., .~:.,~ ~ee .:...__e._.. .....:.~.,_e ~.~ ~ ...~:.,q.__e._.. ~..q. _~._~......._ .. ~ee..q: ~.~~.~.:q. ~ ._. . ~ . ~ :.q._ _e. ._~: . .q._. ~..|...~:. q~..|. ~~ ~~ . ~.~: ~_ .e: ..: q ~ ._ ~. , ~ , . .. .:..:. ~.,_e ,.~-~.~ ~.... ...._.:~ . 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Weve given this market as a gift to the drug traffickers and that is more destructive socially than the drug itself, because it rots the whole of society. INTERNATIONAL BIZ 19 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Summary Contd. P 20...(CSK) Myanmar Business Today mmbiztoday.com Australia Govt Staring At Debt Mountain as Economy Slows Budget defcit blows out to A$47b for 2013/14; Revenues drained by sluggish growth, fading mining boom Wayne Cole and Lincoln Feast J ust three months in power, Australias Liberal National government has abandoned all thought of re- turning to a budget surplus and predIcLed dehcILs Ior LIe nexL decade without spending cuts, heralding sober times ahead for the resource-rich country. As subpar economic growth and a cooling mining boom carve a hole in government hnunces, Treusurer Joe Hockey warned that Australia had to cIImb u cIuIIengIng hscuI und economic mountain. Returning the budget to sustainable surpluses will not be achieved by piecemeal savings here and there. I t will require a sustained and funda- mental structural overhaul of expenditure, said Hockey as he announced the countrys third- IurgesL dehcIL on record. The Coalition government now expects a shortfall of A$47 billion ($42 billion) for the year through J une 2014, up from a previous forecast of A$30.1 billion made only four months ago. The gap would narrow only slowly to A33.89 billion in 2014/ 15, A$24 billion the year after and still be at A$17.7 bil- lion in 2016/ 17. I t highlights the scale of the funding challenge ahead, said Su-Lin Ong, a senior economist at RBC Capital Markets. I ts not a debt path you would want to remain on, so theres going to have to be a tough conversation on what amount of austerity lies ahead. The scope for drastic spending cuts or tax increases is limited by the sluggish economy, which grew 2.3 percent in the year to September. Hockey forecast growth of 2.5 percent in both 2013/ 14 and 2014/ 15, short of the 3.25- 3.5 percent pace considered normal in a country that has noL suered u recessIon Ior zz years. The Reserve Bank of Australia has done what it can to support growth by cutting interest rates to a historic low of 2.5 percent, but has appeared reluctant to ease any further for fear of stoking a speculative bubble in house prices. Some of the deterioration in the budget bottom line is due to steps taken by the new govern- ment, in particular a plan to gift A$8.8 billion to the RBA to help rebuild its reserves. I t has also scrapped revenue- raising plans including fringe benehLs on cur Ieuses und LuxIng high pension incomes. Reuters A mine worker lays out safety cones in front of giant mining trucks at the Fortescue Solomon iron ore mine located in the Sheila Valley, around 400 km (249 miles) south of Port Hedland, in the Pilbara region of Western Australia. D a v i d
G r a y / R e u t e r s Glaxosmithkline to Stop Paying Doctors to Promote Drugs Ending sales reps targets globally following US move; Comes amid criticism of aggressive industry sales tactics Ben Hirschler G laxoSmithKline will stop paying doctors to promote its products at events and remove individual sales targets for its marketing sLu In u hrsL Ior LIe drugs In- dustry looking to recover from scandals over improper sales practices. I t also said last week it would stop payments to healthcare professionals for attending medical conferences. The initiative represents a bid by Britains biggest drugmaker to get ahead of its critics by uddressIng poLenLIuI conIcLs of interest that could put com- mercial interests ahead of the best outcome for patients. I t comes amid a major bribery investigation in China, where police have accused GlaxoS- mithKline (GSK) of funnelling up to 3 billion yuan ($494 million) to travel agencies to facilitate bribes to boost its drug sales. However, the company said the measures were not directly related to its Chinese problems and were rather part of a broad eorL Lo Improve Lrunspurency. The entire drugs industry has been under hre Ior uggressIve marketing tactics in recent years and the GSK action is likely to put pressure on other companies to consider similar steps. I n the United States, the industrys biggest market by far, many companies have run InLo conIcLs over Improper sales tactics and GSK reached a record $3-billion settlement with the US government last year over charges that it pro- vided misleading information on certain drugs. A number oI oLIer hrms have taken some steps to clean up their marketing practices. AstraZeneca said in 2011 it was scrapping payments for doctors to attend international congresses but others, until now, have not followed suit and GSKs actions go further. We recognise that we have an important role to play in providing doctors with infor- Contd. P 20...(CSK) _..._~..- .. qe ~. .q~., _e ~:~:qq_.. ...~:~~. ~~.._..~._.~., _.,._ qq q, _. . .:.~:.. .~ . , . ~ . _. . ~. ..q ~ ..: ._e~ .~:~ . .:. ._.. .:._.e . . . ~ ~ ~ . . _.. .:. _~ .~ . ._~: . ., . , . :._.. _..._~..- ~,:~~._. ~.,~:. . . .. . ._ . . . . :. .q. ~ .~~ . . , ... ..~ ._. .. .~ ~ . ..,.e_e.~.~~..:.._. ~._. ~.,..~: .. , ._ ~~ ~ ~. .q- _:.q.~:. . ~ ..._ _e. _.. _:.q... J oe Hockey ~ _..._~..~.,_e _:.q.. ... :..q. .,..'.~.:.. : _~..:. ._~~~ .~:_e~q, ~:.~q ._ _e. ._~:. .~ ...._.:_~:.. ._ . .qq_..:~_~..: ~~ .._...:. _.,._qq .:q,~~~ ~... .:. ,. . . . _ . _ . . .:. _e .~: _. . . ._ .e ~ ._~: . ~. .. ..: ~...q~~:. .qq_~_~ ..:_.. ~._..~..: e._..~ .~.._~: . Hockey ~ _..._~.. -~~ e~_~ ..:.. .. . _.. . ~ ~. . ~._.~.,~ ~_.,._~_:q:~ ._.:_~:.. ._ . GlaxoSmithKline ~.~. ,. ~- ~~,.:.~:. .q:.~:. _. ~ q, ~~~ .q:~, .:.~:. . ._~......: q. .:.~ q. . .. :. eeq._~:. ._.:_~:..._. _. ~,..:.q...:.q:~.~_. ~.. ~..:.~:. ...~|..q: ...... ..:.. ~~.q:~q._~~~ ... ..:q..:.~._. q.... :.q, ..:.._~:. .q._. ~..|....:..:.._ ~.: ...~|...,.~ ....._e._.. _- ~ , ~._.. ~ ...~|. ~ . . ._ . . , ._~._e. ._ GlaxoSmithKline ~.,_e ~~ .~ _..:.. . .~ .~ ._ .~e, . .:. ._e. ..'.:q, ~~ ~ ..: q~_.._e._.. e...~~. ~, ~ . _ ~~ .~ _..:.. ..~: . .~ .~ .|~.~.~.q_...,:~ e.~. ..:q~.:_.._e.._. R e u t e r s December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 20 Myanmar Summary Alwuys Keep Som cient Liqoidity David Mayes T his is not the most excit- ing topic in the world but if you get it wrong when it comes to liquidity you can really suer. TIe muIn LIIng wouId like to make sure you under- sLund Is LIe dIerences beLween stated liquidity and the actual liquidity of a funds underlying usseLs. TIe bIg dIerence oILen lies in the valuation method used. Many funds trade exclusively in liquid securities such as shares on a major stock ex- change, or futures contracts. When things dont go so well, and investors start to want to redeem some or all of their investments, it is quite easy for these funds to go dump their holdings on the open market to raise the cash required to meet such redemptions. Generally the funds which trade in very liquid securities have a mark to market valua- tion method. This is easy to do because of the large number of transactions, and thus the last sale is generally a good proxy of the price the fund could achieve if it needed to liquidate its hold- ings. Slippage is the technical Lerm Ior LIe dIerence In wIuL they would actually get, since their own selling pressure would cause the market to move against them. Generally slip- page is relatively small even for a large fund if the markets are very liquid. Mark-to-model on the other hand, requires a much more complicated estimation of the net asset value, or what the shares of the fund are actually worth. Property funds tend to be mark-to-model out of neces- sity, since there is no exchange for buying and selling proper- ties. I n practice the models can be somewhat misleading some- LImes, sInce LIere Is u conIcL of interest involved. Obviously, the more favourable the model used, the better the returns look and the easier it is to market the fund. This is where you can get caught in a trap if you arent careful. Most mark-to-model funds promise unrealistic liquidity terms. They may trade monthly and if all is going well you can redeem and be paid out in a month. However, and this a big however, if it all goes wrong it can very quickly turn into a situation where you wait years for your money back. As there have been several IIgI prohIe IuIIures In prop- erty funds recently, there has been a small backlash against mark-to-model funds in the international advice industry. Many advisors are selling out of them en masse and this actually makes the problem worse, as some funds end up suspended out of nothing other than fear. My advice is to simply man- age the liquidity based on the underlying holdings as opposed to avoiding mark-to-model funds altogether, since they can provide a much needed bIL oI dIversIhcuLIon und non- correlation to traditional asset classes. I n recent times where when things go bad, traditional asset classes have become more and more correlated and this is a very dIm cuIL LIIng Ior InvesLors to deal with. Simply make sure the vast bulk of your portfolio is in funds which trade in liquid underlying assets. I would keep it to a maximum of 20 percent of your portfolio. This way, if all of the mark-to-model funds you hold get tied up simultaneously, you ought to have no reason to worry about having liquidity troubles. David Mayes MBA provides wealth management ser- vices to expatriates throughout Southeast Asia, focusing on UK pension transfers. He can be reached at david.m@ faramond.com. Faramond UK is regulated by the FCA and provides advice on taxation and pensions. mation about our medicines, but this must be done clearly, transparently and without any percepLIon oI conIcL oI InLer- est, Chief Executive Andrew Witty said in a statement. The decision to stop payments to doctors for speaking about medicines during meetings with other prescribers marks a big shift for a global industry that has always relied heavily on the Inuence oI experLs In promoL- ing products. GSK said it aimed to imple- ment this move and a related measure to end paying for doc- tors to attend medical confer- ences by the start of 2016. The change in payments to its sales representatives will be implemented faster, following a successful test-run in the United States, where payments have been decoupled from the number of prescriptions gener- ated since 2011. The policy of ending indi- vidual sales targets will now be rolled out globally. GSK said it planned to implement the new compensation system in all countries by early 2015. GSK will still pay fees to From page 19...(CSK) From page 19...(CSK) ...'.e..._. : .~~.:. ee.~:...: ~._~:.~q:~.. .e~..:._. ~..|~.~~:. q .. ._. . . . .:.~.,_e .~: .. , . : . q .:.. . ., .,. ,:. .:. _~ .~ q._ . _e. ._ .q .. ._. . . . .:.~., _e . q ,:.._ ..:..|~ :.q._ ~.q..|..:~.~. : .,.:.:.- .~ . ~ .e: _.:.._ . ..'. e. . ~.,~~e...'.e. ~._. ~.,~:_.:..~._e._.. _~..:...: ~ _.:..~ ._ .e e~:._e ~, e . _e~ . ,_......'~ . ~_ .,._ . ..~:~.. ,.~..q qee:.:.~ . ...'.e..: ~.qee:.:. . .e ~ ~,:~ . . , ...:~ .:.. .:.~:. ..., ~ , . e . _.. . _~._ .. . , .~._.~.,.:. ..~: . ._ ~. , ~ q .. ._. . . . .:.~.,_e ,.~- q..._....~. ..e~, ~:.. .~ ~e~ .e . .:_~_. . . . ~ .~ ~e q q e e:. . . .:.~:. ... ~~e~: _.,._~e~.e.q, ~~ ~ . ~. ..: q, . . _. ~ . ~ _...q,~~~ .e~..q._. .e e~:._ e . ..'. e ..: ~.qee:.:.~:. ~,.e._... _...:.~~~ Mark to Market ~,e._e~._ ,_..,.q._. . .e~_...: ~.q:.~~e..,. ~ . . : _~ ..:.._ ~~ ~ _e. _. . .,:~ ...q:....:.._ ....,..:.- ~e.:..e~....:._e.._. ..:.,.:.._~ ..:~_..e .ee..'..._ Slippage . ._ .~|e:q._ ~.,~~eqq ._ ~._.~.,- ~:_.:..~. _e.._. q..._.....:.- .q:...e~:. ._ ...~ ~ ~:. , .~ ..: . , .. ~:. ., ~ ._ ~._.: .~. ~ _e. ..' ..._ . .e e~:._e ...~ ~ .:. ~.,_e .~.e~~...... ._ . . . ._~...:~.:._.:...: ._. Slippage ._ .~.q:~ .,_..|....__e.._. Mark to Model ._ ..,.....: qe e:~, e . ., . , .~ ~ .~ . .:..|~ _. . ..e~ qee:.:.- ~.,~~e ~,e..|~._.~._.._...,... doctors carrying out company- sponsored clinical research, advisory activities and market research, which it said were es- sential in providing insights on specIhc dIseuses. Reuters . q:~ ~.q: .~~e _.. . _ q, . ._. ~..:.~.,_e ...~:. q.__e._.. ~._.._.~ee.q:... .:.~~~ ..~:~.. ,.._. .q .. ~,e..,.:.. :._. ....,. ~.~ ~.~ ~~ ~~ ._ .:. q, .~.._. .~.~~e.,_..:.~., _e ~~ . . , . . :. .| ~ .:. _ ..,: ._ ~: ~. .|~. q ~ .. .. . :.. ._ . . . .~: .. , ~....:..: ,_ ..,. ~:.~. ._.. . . .~: . .,._ ~_.~~.,.~ qq. ._ _e. ._.q..._.....:.~.,_e , ~ . ~ ...: q ~ . . 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Andrew Witty ~ ._.:_~:. .._. ...~|.. :.-~. ~ ~.~ . :.~ ._.:_~:.q, ~~ ~ .q:~, .:.~:. . ._~......: q. .:.~ q. . .. ._.._e~.~.:~_.:....~|..:e . . :.. .~ . .. ... .. , ~ . . _ e~ . ~ . . _ . . _ e. ._ .... ~| . . . , ..:.~.,_e ...~|..:.~:. ~.q: ._ . ~ q, ~~ ~ ...~|. ~. .~ . .:.~..'~ ~. , . . .,.q_.. e.~.|~..~..:.~:. ...~|..:.~.q:._.~q,~~~ .....: q. . :.~ q. ~, . ._ ~~ ~ ~._ .: .~. _ ~ .~. q. _ e. ,..:._._e.._. Property funds tend to be mark to model out of necessity, since there is no exchange for buying and selling properties. N e il H a ll/ R e u t e r s INVESTMENT & FINANCE 21 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Summary Myanmar Business Today mmbiztoday.com Singapores UPP Greentech Terminates JV with Myanmar Partner S ingapore-listed conglomerate UPP Greentech said it is terminating its joint venture agreement that it struck with its Myanmar partner in J uly. I n a disclosure to the Singapore Exchange, the board of di- rectors of UPP Holdings Ltd announced that UPP Greentech Pte Ltd and Myan Shwe Pyi Ltd (MSPL) have entered into an agreement to terminate their joint venture agreement (J VA) by mutual agreement. However, the company will still incorporate the J V vehicle. Notwithstanding the termination of the J VA, pursuant to the agreement, UPP Greentech and MSPL, have agreed to proceed with the ongoing incorporation of UPP-MSP, which would be the joint venture vehicle for any future investment of the parties In Myunmur, UPP suId In LIe hIIng. I n J uly, UPP Greentech, a subsidiary of UPP Holdings Ltd, inked a joint venture agreement with MSPL to establish a com- pany called Kanaung Engineering Ltd. Under the agreement, UPP Greentech was supposed to own 67 percent stake in Kanaung, with the remaining 33 percent held by MSPL. Kanaung Engineerings main operations were expected to involve the blasting and drilling of rocks and/ or breaking down blasted rock materials into aggregates to support key infrastruc- ture projects in Myanmar. The J V company will have had a total issued and paid up capi- tal of $20,895,523 (S$26.52 million). UPP said the total issued and paid-up share capital of UPP-MSP will be maintained at its current level of $50,000 comprising 50,000 ordinary shares of $1each as required by LIe CompunIes RegIsLruLIon Om ce oI Myunmur und wIII noL be increased to $12 million divided into 12 million shares of $1.00 each as contemplated in the J VA. The total issued and paid-up capital of UPP-MSP is held in the following proportions: MSPL, 12,500 shares representing 25 percent of the share capital of UPP-MSP; and UPP Greentech, 37,500 shares representing 75 percent of the share capital of UPP-MSP. UPP Greentech has two board seats, whereas MSPL has one board seat on UPP-MSP. UPP said the termination of the J VA and the incorporation of UPP-MSP are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the company and its subsidiaries, for the current hnuncIuI yeur endIng 1 December. Kyaw Min family income. I n poppy grow- Ing vIIIuges, sIgnIhcunLIy more households are in debt and food insecure than in non-poppy growing villages. Villagers threatened with food insecurity and poverty need sustainable economic al- ternatives or they will continue, out of desperation, to grow opium as a cash crop, Eligh said. Plans are also underway to link infrastructure and transporta- tion routes between countries, highlighting the urgent need to crackdown on opium cultiva- tion, says the UNODC, since From page 9...(SL Asia) drug Lrum ckers couId be LukIng advantage of easier integration to access growing markets. The UNODC is working to develop alternative livelihood options to help farmers switch to cultivating other crops, said Douglas. But these programs have been of limited size to date und need Lo be sIgnIhcunLIy scaled up. Eligh told WSJ that in the absence of alternative employ- ment and viable economic plans to help develop impoverished poppy growing areas, then indications are that [opium production] may continue to rise. From page 9...(SL Asia) Chinese Businesses Should Invest in Factories: UMFCCI Phyu Thit Lwin C hinese investors should set up factories in My- anmar rather than only buying raw materials from the recently-opened Southeast Asian countries, a top Union of Myanmar Federation of Chambers of Commerce and I n- dusLrIes (UMCC) om cIuI suId. Chinese entrepreneurs should not only buy raw materials but also come and build factories in Myanmar to munuIucLure hnIsIed producLs and export them to other coun- tries, Aye Lwin, joint secretary of UMFCCI , said. Compared with other coun- tries China is by far the largest trade partner of Myanmar. Bi- lateral trade between Myanmar and China amounted to $5.6 bIIIIon durIng LIe hrsL eIgIL months of 2013, up 25.4 per- cent compared with that of the same period of 2012, according to the Ministry of Commerce statistics. Myanmar businesspeople said China should readjust its high Luxes on LIe ImporL oI hnIsIed- goods from Myanmar. China imposes low taxes on raw ma- terials but imposes punishing Luxes on hnIsIed goods Irom Myanmar. I n this regard, fair trade terms and tax reduction is necessary, U Aye Lwin said. I f Myanmar exports raw ma- terials such as mineral, gems, LImber, beun, hsI und meuL, China gives tax exemption. But II hnIsIed producLs ure exporL- ed, there is a very high tax. So, there is a very little chance for us Lo exporL hnIsIed producLs to China. Local entrepreneurs now even export bean as raw mate- rial and we are losing many chances to enhance our trade, he said. Ren Shao, assistant director of the Department of Foreign Trade and Economic Coop- eration of Guangdong Province, said she would report this to the Chinese government. Aye Lwin was speaking at a business meeting between Myanmar and Chinese en- trepreneurs, co-organised by the UMFCCI and the China Council for the Promotion of I nternational Trade (CCPI T) of Guangdong Province. The 22-member delegation of the CCPI T (Guangdong) arrived in Myanmar to explore business opportunities in December 11. The Chinese entrepreneurs said they aim to make joint ventures in wood manufacturing, shoe making, advertising and media, among others in Myanmar. A total investment of $75 mil- lion is planned, they said. China is the largest foreign investor in Myanmar among the 33 foreign countries, with 51 businesses investing about $14 billion in Myanmar. Currently, J apan, South Ko- rea, the US and other European countries are eyeing Myanmar for investments according to international standards, so Chi- nese businessmen should come and invest like other countries for long-term, sustainable businesses, Myanmar entrepre- neurs said. .~:.~ .:q...:.._ ...:..q.~~:.._~._e.._ UPP Greentech ._ ~..~ _.,.: . . _._ ~ .. . , .~. . . ~~ .~ ....|.._.. e.~.| ~~.~ . ...| .. ~ ~. ..~ q, ~~ ~ ..: q ~ ., ._~: . ~. .|~ . ~ . ._.:_~:. .._. UPP Holdings Ltd . ~~e~._~..:.~ UPP Greentech Pte Ltd . Myan Shwe Pyi Ltd (MSPL) ~._ ~~.~e~.. ..:~_.~~:. .....e~ ..:~_._e ~...~q, ~.,~ :.. .q:~q.:._._e.._~:. ~_.,._.:_~:..._.~~.~e~ .. ..:~ _ .~ ~:. ~. ..~ q, ~~ ~ ..:~ _._~..:._ . UPP Greentech . MSPL ~._ UPP-MSP ....|...:q~...,. .:.~ .~.~....:q,~~ ~ ..:~_._~._~:. UPP . ._.:_~:..._. ~..~ UPP Holdings Ltd - ..,..~.._e...: UPP Greentech ._ MSPL . 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UNODC . ...:.,.....:.~ ~_... ~.,~:.~. q. ._ ._ e. ._ ~: . .q._. , ._e. ~_.:.~. .. ...: ~q:. .~..e....~|..:. ~..q:~ ~. ~.|~ .. _ ._e. ..: , .. ~ . . ~...._ .:~~ .~... ..~.~_ ~~~~~ ~._.:. ~....q ..~ ~.. .:._~:. .q._. ..~..~q _.,.:.~ ,..~..~... _. ~~ .:. ~ e ....- ~ . . ..,.:.~:. ....~:. _.~~ .:...._~:. .q._. ~, ~ . ._ _., .:. - ~. ~ ...:.e~.~.._e._.. ,e..~, .e. ..,~,.e...:~.:..: ._. ...~.~~.~q~: ~_.:. ..:.- ~,.e....e.|~ ~.:...~.~q..:._. ,. ~~.,_e _._~.. ~,_~...._. .:.~.: ~.~~ee.,._e .~ ._ ~,.e. ~.,~..~:~.. ~ ~ _.. . q, . ~. ._ e _., .:. ~,._.:.. .~..~...,.q . :.~. .. . . ~ e~ ~. . ~~ ..q... ..~..~ ._.:._. _.,.:.~ ~,~.~ .~ .e~:~ .~:~.~.~:~... .. . .:.|..~~,_~...~ ~ ..q ~,~~..q~~ ~.,~. ~ .. ~ . ..._. . ~ , ..:.~ ~ .~: ~. , ~._~ .. : .~ . ~ :.~ ~~ ~ ~,..:~... ~.~.q.,_. .|..,~e. _._~....:..q...,. q .~ . : ~ , _~. .~_e. , . ~ . .,q .~: ~.~.q...,...~ ~.:._~. .''e ,.~ .~.~._.:.._. Source: UNODC December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 22 Myanmar Summary Myanmars Electricity Crisis: Hope on the Horizon? Angelo Georgiou C ould we be see- ing an end to the electricity crisis in Myanmar? I t seems so. Cyprus-based Andreas Theodorou Group of CompunIes Ius omcIuIIy oered Lo KIIn Muung Soe, minister for energy, and Zayar Aung, minister for electricity, an invest- ment of $25 billion for the development of nation- wide green, sustainable energy in Myanmar. We are entering the year 2014 and 70 percent of Myanmars vast popula- tion still does not have access to sustainable electricity supply. Logic tells us that if all citizens of Myanmar had access to sustainable and clean electricity supply, it will provide a higher quality of life and higher chances of a better economic state. Electricity can ensure clean water supply, help improve agriculture, industry, health and edu- cational services; overall it would help increase life chances and greatly increase the quality of life for Myanmar citizens who would then be able to better plan a sustainable future for themselves. Currently, the majority of Myanmar citizens are economically crippled and cannot adequately plan their future due to the lack or no access to uninterrupted electric- ity supply. The future and progress of Myanmar is largely dependent upon clean and green uninterrupted sustain- able electricity supply to every single citizen of the country. I magine 42-45 million more Myanmar citizens with access to electricity and it will be easy to picture the incred- ible overnight positive progress of the nation. Myanmar is a growing nation with proud and highly-educated, skilled people, whose future is held back and/ or stumped due to the lack of industry growth and opportuni- ties which is due to lack of sustainable national electricity supply. Ambassador C Vassili of I CPT I nternational Hu- man Rights Council, who is from Cyprus, realised the great need for green energy investment in areas of waste to energy, which further reduces the ongoing hazardous waste issues, bio-mass, solar, wind, gas turbine power stations and hy- dropower in Myanmar. He entered into talks with the ambassador of Myanmar to the UK to discuss how such projects couId benehL Myunmur so that all its citizens could benehL Irom conLInuuI nationwide sustainable electricity supply. Europeun hrm Andreus Theodorou Group of Companies also entered LIe LuIks und oered un investment of $25 billion in green energy develop- ment in Myanmar. The proposal made to Zayar Aung and Khin Maung Soe has been welcomed and is expected to lead Lo LIe greuLer benehL oI Myanmar and its citizens. Let us look at the benehLs oI LIe Andreus Theodorou Group of Companies investment. TIe hrm wIII seek joInL venture partnership with Myanmar companies, which the latter will dIrecLIy benehL Irom und create local employment and revenue. Energy development subcon- tracts will also be aimed at Myanmar companies through this venture, and it will create thousands of long term jobs for Myan- mar citizens. The venture will provide electricity access to all Myanmar citizens of which some 42-45 million of its citizens do not cur- rently have access to main grId or o grId susLuInubIe green electricity supply. This investment will place Myanmar in a posi- tion where it will not need to seek to buy electricity from other countries. I n turn, it will help improve and create new home in- dustries, improve exports, create new agriculture and clean water supplies, attract foreign invest- ment, help improve and create new educational and health facilities, and bring Myanmar many years ahead of its energy roadmap. More importantly it will give Myanmar its national pride and greatly improve the quality of life of its citizens and better allow them the means to cre- ate a brighter future for themselves and genera- tions to come. The Andreas Theodorou Group of Companies have already shown their sin- cerity and commitment to the investment via a signed and memorandum A Cyprus-based company has offered to invest $25 billion in Myanmar's electricity sector to provide nationwide green, sustainable energy. O liv e r
S lo w of understanding which now awaits the signing by the Ministry of Electric- ity to progress matters Lowurds hnuI conLrucLs. TIe benehL oI LIIs coI- laboration between the Andreas Theodorou & TBEA Sunoasis and the ministry will bring Myan- mar and its citizens into the light. This would be the greatest gift Myanmar has ever provided to its people. Angelo Georgiou is the Chief of International Agcirs oj the ICPT Inter- national Human Rights Council. Views and opin- ions expressed here are the authors own. . ~ .q~ . ~._.. ~ Andreas Theodorou Group of Companies . ...~~,_~. ....:... .......~:. ~, _~ . ..~e:.~: ~ ~:. ~..q~,..'.: .e ~. ._._ _., .:. ~ ., q . _.. .qq_~_~e_e....~ . . , . e_ e . ~ . ~~ . .:. ~ ..:q~q,~~~ ~q:.~ ~......._~:. .q._. e. ~.| ~~, . . . . .q:~ q .~: ._ _e. _. . _ ., .:. q ...q- ~ q:..,.._ .qq _ ~_ ~ ..:.. .. .:~ ~:. .:~...:.~ .qq. ......~ ~ .~ . .:.~q _., .: . .:.~:.. .~.,_e .qq _ ~_~ _. . ., q ...: .. .. . . .~~ qq . ._ . . . . ~~q_ ~....:.~ .._. ~.:.._ _e. _.. ... :..q. ~~ ~ ._ . . . _. .:...: ~. ~.. ..:. ..' ~ .:. ..._ _e. ._ . e. .~ q ~. , ~ _ ., .: .. _._.~.:...: ...:. .q.~ ~ ~:.._ , .,_. . . .~ ._ .~ .. .. .:~ ~:. .:~ . . ~ .qq _. .._~: ,.~- ~,:~~~~._. ~. ~. .~: ..:. ._.. . . ._ ~.,~:.~ q .,._ . ~,:~ . e _e .~ .~~ . ._ ., q ._. . . .~ ._.~ .. .. .:~ ~:..:~ . .... . ~..' ~ ~.:._~..~_.,._. INVESTMENT & FINANCE 23 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Business Today mmbiztoday.com Myanmar Summary Thailands PTT aims to list power unit on Bangkok bourse in mid-2014 T hailands biggest energy hrm PTT PcI suId IL pIuns to sell about 25-30 per- cent of an electricity generation company in an initial public oerIng In mId-zo1q Lo ruIse funds for regional expansion. PTT`s CIIeI InuncIuI Omcer, Surong Bulakul, told report- ers at a news conference that the strategy is part of state- controlled PTTs drive to triple Global Power Synergy Cos (GPSC) generating capacity to 6,000 megawatts in 2020 from 2,000 MW. Surong gave no details about the value of the listing, expected on the Bang- kok stock exchange. GPSC aims to invest in de- veloping its power business at home, as well as expanding into Laos, I ndonesia and Myanmar. The business, a joint venture between PTT and its subsidiar- ies Thai Oil Pcl and PTT Global Chemical Pcl, is expected to contribute about 5-10 percent of PTTs group revenue in the next 10 years, Surong said. PTT has also planned to dilute its 36 percent holding in Star PeLroIeum RehnIng Co (SPRC) in a separate IPO sometime next year. SPRC, 64-percent owned by oil giant Chevron Corp, operates u 16o,ooo burreI-per-duy rehn- ery in eastern Rayong province. The energy giant previously scaled back spending plans for this year due to lower-than- expected economic growth, and said it wanted to sell non-core assets, like its palm oil business in I ndonesia. Reuters Contd. P 26...(]apan Loans) Japan to Provide Fresh $61om Louns to Myunmur J apan pledged to provide another 63 billion ($610.53 million) loans to Myanmar recently, mainly to fund the Southeast Asian coun- trys infrastructure projects. With J apanese Prime Minis- ter Shinzo Abe having promised aid of 91 billion in loans to Myanmar in May, the total aid of J apan under his government is now more than 150 billion. We will continue to provide support, both at the public and private level, for infrastructure building initiatives and work toward Myanmars develop- ment, Abe said at a joint press conference after meeting with Myanmars President Thein Sein, who came to J apan to attend the regional summit between J apan and the Associa- tion of Southeast Asian Nations (ASEAN). The loans are designed to help build infrastructure for the Thilawa Special Economic Zone in the suburbs of Yangon, Myan- mars largest city, and upgrade a railway network in Myanmar, among other projects. Abe also pledged J apans support for Myanmars health and medical sectors, and postal system. He told Thein Sein dur- ing their meeting that he wants to cooperate closely with the president next year to achieve major progress in developing the ASEAN region. Myanmar will hold the ASEAN cIuIrmunsIIp Ior LIe hrsL LIme in 2014. J apan and Myanmar will mark the 60 th anniversary next year of the establishment of diplomatic ties. Su Su Tensions between China and J apan have mounted this year in the East China Sea over dis- puted islands. Beijings decision last month to declare an air de- Iense IdenLIhcuLIon zone In LIe area has added to the fraught atmosphere. Abe, since coming to power a year ago, has promoted J apan as an ally for Asian countries that also are wary of Beijings growing regional clout. These include Myanmar, a resource-rich nation that has long been in Chinas sphere of Inuence, buL wIose mIIILury rulers have given way to a nominally civilian administra- tion and opened the country to other foreign investors. The J apanese prime minister said J apan would make an eorL Lo cooperuLe wILI My- anmar and Thailand to develop the Dawei industrial zone in southern Myanmar. Myanmar and Thailand are planning to develop a 6,000- acre project in Dawei, a south- ern port town close to the Thai border, and have sought to per- suade J apan to join. The project envisages building crude oil storage facilities and a pipeline across the border, greatly reducing the cost of shipping oil to Thailand. But the plan, which was being backed by a Thai company, has stalled due to lack of capital. Abes support for the develop- ment, although lacking details, is the strongest sign yet that J a- pan could join the consortium. J apans more activist role in Myanmar is likely to be viewed Myanmar Summary Contd. P 26...(]apan Loans) MIGA Welcomes Myanmar as a New Member Shein Thu Aung T he Multilateral I nvestment Guarantee Agency (MI GA), the political risk insurance and credit enhancement arm of the World Bank Group, announced that My- unmur Ius IuIhIIed uII oI ILs membersIIp requIremenLs Lo become MI GAs 180 th member. Myanmars membership in MI GA means that direct for- eign investment into the country is eligible for the agencys investment guarantees. MI GAs guarantees protect investments against the risks of transfer restriction, expropriation, breach of contract, non-IonourIng oI hnuncIuI obIIguLIons, und wur und cIvII disturbance. I nvestors from Myanmar going into MI GAs other devel- oping member countries may also receive coverage for their investments. Were very happy to welcome Myanmar as a MI GA mem- ber at a critical time in the countrys history, said Keiko Honda, MI GAs executive vice president. We are eager to support investments in sectors such as energy, telecom, and agribusiness. I nvestments that create jobs and provide critical infrastructure will help Myanmar reuIIse LIe benehLs oI ILs IIsLorIc LrunsILIon. .,.. _.,.:.. .,:~. ~~~_~_e. e,.. 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PTT - _:.q.~...:.. _e. . Surong Bulakul ~ e. ~ . . . , .q e e:.:. .q: ... ._ . ...,._~._e.._ PTT - Global Power Synergy Co(GPSC) . .. .. .:~ ~:. ~ . . . .:.~ e. .~q ~~~ .|~.~..... ~~ ~ '~~~ .|~.~ ... ~._ ~...q,~~~ _~..... ~.._e.._~:.._. .~..:q. . .. ~ .~ ..:~ .:.~:. ._.: _~:..._. ~. : ~ - Multilateral Investment Guarantee Agency (MIGA) ~ _.,.:.._ ~~._.:~~e~~.._e..:._._e.._~:. .q._. MIGA ~ _., .:. ~.,_e ~e ~ . ~. . ~_e. ..:~ _ :. _..._~: _.,.:.. q..._...._ . _.:.~ ~ , ~ q .. ._. . . . .:. ~~~.~.q..._....~:...~.:.. ~~_.qq.__e.._~:. ._. .q._. MIGA .~:.. .~.:.~~.._.:..~,.~.~.:.- q.., .:.q..:. ...e_...:. ..,. ..:~ _.~.:.~ e~..._.. .... .....q:...:.~.q._ ~ .|~ _.. q .. ._. . . . .:.~~ ~ ~~:~~ e .... :.. ._ _e. ._~: ..q._. _.,.:.. q..._.....:.~., _e._. MIGA - ~_.:.e_e.. ~e~..:.~ q..._...q:~ ._. ,.~- q..._....~~~ . ~ .e _~_ . q .:. ..._ _e. ._ . ..~~.,_e e.~. _.,.:. -.. .~ ~.q..|..:~. , _ _., .:.~:. MIGA - ~e~~_e. ~..._.:~~...:.: _~..|._~:. MIGA - .~e~...:~_ Keiko Honda ~ ._.:_~:..._. December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com 24 INTIRNATIONAL AN OMISTIC ILIGHT SCHILLI Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN) Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 3 5 7 DMK RGN 06:30 07:55 NOK Airlines DD4231 1 3 5 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia 8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia 8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN) W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN) Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline 8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI 8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir 8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN) AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia 8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN) VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN) VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN) CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN) CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG) Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN) CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG) Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN) Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKo ong (HKG) Flights from Yaangon ((RGN) KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN) 8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN) Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY) Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN) 8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN) NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN) KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN) QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN) Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter FMI-B1 1 2 3 4 5 RGN NYT 13:00 14:00 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 14:20 15:20 FMI Air Charter FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter 6T211 1 7 RGN NYT 15:30 16:25 Air Mandalay 6T212 1 7 NYT RGN 16:45 17:40 Air Mandalay FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN) Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday PROPERTY & REAL ESTATE 25 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Summary Myanmar Business Today mmbiztoday.com People look out from their apartments in an older part of Yangon. Affordable apartments and hostels for people coming to Yangon from different parts of Myanmar are getting increasingly rare amid surging rentals. Soaring Rentals Hurt Yangon-bound Workers and Students D a m ir
S a g o lj/ R e u t e r s W orkers and stu- dents coming to Yangon from all over Myunmur ure hndIng IL IncreusIngIy dImcuIL Lo uord LIeIr sLuy due Lo spiralling rental prices in the commercial hub of the country, sources say. Yangon has always been a pull for workers around Myunmur wIo hnd IL dII- hcuIL Lo eurn enougI In other parts of the country due to a centralised economy and lack of job opportunities. The same goes for students who aspire for higher educa- LIon us Myunmur oers very few, or no, quality educational institutions around the country except for Yangon. However, the inbound population, which surged to a greater height fol- lowing sweeping reforms which started taking place in 2011, is now strug- gIIng Lo hnd uordubIe apartments and hostels because of surging rental prices. My salary is K70,000 per month. In 2011, hostel fees were increased from K15,000 to K20,000, and last year it went up to K25,000. Some had to Phyu Thit Lwin even pay K30,000, Ma Eaint Chit, a tenant at a hostel in Kamayut town- ship, said. If the hostel rental is almost half of your salary you cun`L uord Lo sup- port your family anymore. Rather I have to ask for help from my family now, she added. To compound the prob- lems, tenants have to rent an apartment or hostel for at least six months up to one year and the whole rent has to be paid in advance on top of which there is a fee equal to one months rent that has to be paid to the broker. Tenants say when a new contract is signed the rental also goes up almost without exception. Before 1990 in Yangon, tenants only had to pay a deposit agreed before- hand between the house owner and the renter, and the rental was later paid per month. However, the new system of pay- ing the full one-year or six-month rental became commonplace afterwards. Apartment and hostel rental charges have been on the up for the last two and a half years in Yangon and in some other major cities in Myanmar, and experts say this trend is unlikely to cease in the near future as the Inbound ow oI economIc migrants soars. Realtors Call for Locution-bused Estate Taxes Htet Aung T he authorities should collect real estate taxes according to the estates respective locations in Yangon, realtors say. Yangons real estate agents said real estate tax rate in LIe suburbs oI Yungon sIouId be dIerenL Irom LIose in downtown. Real estate market has been on the rise and at the end of 2013 the business remains brisk. Urban real estate markets or real estates in downtown Yangon sell more than those in the suburbs. So, the purchase tax in the outskirts should be less than the downtown estates, said U Aung Moe, director of a Yangon-based real estate agency. In October, the authorities put a cap on land prices in Yangon to rein in on the overheated property market. This year, we have seen many changes regarding laws and regulations. But still the market is soaring. In this situation, real estate purchasers in Yangon city should puy Lux dIerenLIy Irom purcIusers In LIe ouLskIrL oI Yangon, said Daw Yu Maw, another real estate agent from Yangon. The tax should be collected based on the location of the estates. Then people will think about buying lands after carefully considering the tax rate, she added. ~_. _. ~,e ,e . q, ~ , _. . .:.q:~~....~., _~._ ~, . ..:.. ~..: :.q. ._. ~, .~~ .,_~..: .~: ..:. .~: .. .:.. : ~..,. ~..::.q....:. ~..~~.. ~q.q. _. ~~.:._~~~ .,.q: ~.~ ~. .:.. q . .,q ._~:. ~..| :.q..., ..:.. .q._. ~,.q ..:~ ~..~ ~~~~ .q~e. ~..:.. ~ ~q ~~~ ...~,.~: ~~~~ ~., ~~~~ ~ _. ~~ .:~e ... . ~ ~~~ _e. . :._.. ~. . ~. ~..: .~.: ,~~~~ ~ ....,q ~:..q~e. ..:q ~~~ _~..:..~: _e..,.~: ~. ~ _.,_....:~..~~_. ~ e ~_., _. . . . .. :.,q~e '' e ~.:q ~_.,e ~~ .~..: :.q. .., . .~ . .. ~ ._.: ._. _. ~ . ., . :.q. .., . .:..:._. ' ..:.._e :._~q_.. .~.~. ,_.__ .:..~.. ...... ~ . :...:. ~ ....q~~ _. . ..:..~_e. ~...:_~...q _. .... _~.~q~~._~:. .q._. q, ~ , _. - ~ . ., . ~..: :.q. ...:.. : .~ q ~. , ~ ._. _~._..,_.. .q.:._ . . .:.~ ._ . ~, e .,_ .~ . q:.:. ..' ~ .:..~:. . ., . . ._~: .~ .~ _. ~~ ., .._ e ~ . _. ._.~~ ...: .:. ...~~~..~..:.~ ....._.:..,_~._. e..~:.~ _...'~._.._. .:. ~.q:.~~e_e.,. .~:_. .:._ . ~. _. ~ .~.~ ~.:~._.,q:.:.q ~._.._..:.- ~., .....:..,.:..:.. .._.e. q. ~ ~ .:.~~ .q ~ . _. ._..:.-~. , .....: . .:.~:.. _.:. .~ . ~ .... ._~: .~ . _. ._.~~ ...: . . , ..|, ~ ~: ..~:..~ ._.: ._. ~....: ~._.._., .~.~~ ....~ ..'.:~~_. ~._.._.~.q: .~~e .~ ~. .. .. :~q ~~._..~.~~ .:~:~.~q.|~e. ~..,q:.: q,~,_...'~~.~~ .~~.:~~.,q:.~.:q~ ~._.._..~~ ~ee..~, ..:~~q.~~.~~ ~._.._..~ ~ ~e e ~ . .~ ~ . .,q:... ~~~~~.~..'.~__...~: ~. , ~..~ ... ..: ~ .,q:. : . _.:..~.~.:..e ..|~e. .|.._._._ . .~ ~ ~~. , .....: . ~..'.~__.. .~_~~.,q:.~~ ~ee...:..:.:_e..|~e''e~._.._.~~...: ..'e..: ~ ._.:._. December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com 26 Myanmar Summary From page 9...(MasterCard) PROPERTY & REAL ESTATE in Beijing as part of attempts by the US to contain China in the region, analysts say. The US and Japan have been among the most vocal op- ponents of Chinas air defense zone in the East China Sea. It is clear that the Chinese view Japan in Myanmar as linked to the US policy of containment against it in the region, David I Steinberg, a specialist on Myan- mar at Georgetown University in Washington, told the Wall Street Journal. Japans push is part of a wider strategy in Southeast Asia, where it has pledged $20 billion in aid and development Iouns Ior LIe nexL hve yeurs und engaged in closer military ties with governments. China still remains by far the largest investor in Myanmar, with which it shares a border. The country has invested or pledged $14.2 billion in the country, a third of all foreign investment. That compares with $292 million from Japan. Still, Japanese investors pIedged $q mIIIIon In LIe hscuI year ended April, up tenfold from the year before that. Chi- nese investors pledged $407 million, down from $12 billion invested in the preceding four years. China denies that it sees Ja- pans growing role in Myanmar as a threat. Yang Houlan, Chinas am- bassador to Myanmar, said in an interview that all foreign From page 23...(]apan Loans) investments could and should be a blessing for Myanmar. He added: Just because they are in, it doesnt mean we are out. For years, Chinese companies made huge investments in Myanmars rare gems industry and in infrastructure. A $2.54 billion oil-and-gas pipeline that traverses Myanmar to China, and was funded and built by Beijing, opened earlier this month. But there have been signs of strain in economic ties between the two nations. In 2011, Myan- mar cancelled plans for China to build a $3.6 billion dam in Myitsone, citing environmental concerns. Other resource pro- jects have met protests. John Lee, a visiting fellow and China expert at the Singapore- based Institute for Southeast Asian Studies, told WSJ that Chinas frustrations in Myan- mar might open the door for Japan. But China is unlikely to pull out of such a strategic area, Lee said. If China wants to contin- ue to pour politically-motivated money into Myanmar, then Jupunese hrms wIII hnd IL Iurd to get a foothold. From page 23...(]apan Loans) Japan's Prime Minister Shinzo Abe (C) smiles with Myanmar's President Thein Sein (L) and Philippine President Benigno Aquino (R) as they leave the stage during a gala dinner of the ASEAN-Japan Commemorative Summit meeting hosted by Abe, in Tokyo. T o s h if u m i K it a m u r a / P o o l ...q, . .:. .,. ~ .~~ .:q, ~~ ~ ._ . ~~ _.. ._ . _., .:. ~.,_e ~~, ...~ ..... ~:. e ~ _q: .~ . ...: q._ _e. _. . .:._ . . ~ ., . . _., .: .~._._. .~.,.~..q. .. '~ _._._.:~_._e.._. e... ~~ . ~.q ~, ~ . .e ~~ . ~, ~ . . ., . ~ ~_~:. ~_ . .:.ee ~,...._..,:._~: ~..:..:. q .:._.. .,.._. ~ ~,~.. ..._~:.~:~e. .~ . ~ ~ , ~:. ._~_:. ._ ~~ ~ ...~_~:. ..::...~..: .:.._.q~~:... .,.._ ~....~:~~. ~:~:q.:._.. ._~.,.._ .,.~:. ~:q ..:.- .e:.~~_e. .~.. ~.~~.:q,~~~ ~._...: q~.:._.. ~,~.- ~:q~~. ......~._. .~. ..:_~_ .,.._. _., .:. ~.,_e .:~.e ~:~ ~q.~_...:. ..|_~e~..: . ~. . _e. _. . ~. , ~.~: ~_~: ~,~.- ......._. q.,._.. ~. .q.. ~~ .:_ . ..,:~ . .~ . ~:. ~ .|.e ..: q ~ . ~: ~_.:. q..._.....:.~._. .~~.. _~....:._~: ~._.~.,._ ~._.:.~.q.:._._e.._. ., ~,_~... q~~:..~ .,. ~.,_e _.,.:. ..~. . .~|.~ . ~ , ~:. e _e .~ .~~ . ..:q~.~.:.~ ....|...~ q, _~ ... .. :.._ _e. ._~: . ._.:_~:. .._. _.,.:.. ..~~., _e :.~e~ ~~e~~,. -~ '~~~ q._ ..~,.~:. ..:q~ q,~~~ ...,_.. .,.~:. .|~..~q,~~~._. e ~..' .._. Thai Tycoon Delays $780m Property Fund IPO Over Political Troubles Khettiya Jittapong T he Thai real estate group controlled by billionaire Charoen Sirivadhanab- hakdi has delayed a plan to raise at least 25 billion baht ($780 million) from selling a property fund to the public, fund manager Krung Thai Asset Management (KTAM) said. TIe oer oI LIe TIuI HoLeI Investment Fund will be post- poned Lo LIe hrsL quurLer oI 2014 from the end of this year, mainly due to regulatory pro- cesses and unfavourable market conditions brought about by Thailands political troubles. Last week Prime Minister Yingluck Shinawatra called a snap election for February 2. She remains caretaker prime minister but protesters want her to go now, with political reforms pushed through before any election. The current political situa- tion has a psychological impact on investor interest especially retailers, Chavinda Hanra- tanakool, senior executive vice president for property funds at KTAM, told reporters. n LIe hrsL quurLer nexL year, all problems should be resolved, she said, adding the fund manager has already submILLed hIIng ubouL LIe Iund oer Lo LIe SecurILIes und Ex- change Commission. The size of the fund was re- duced from an initial 32 billion baht, and assets to be trans- ferred to the fund will include 12 hotels in Bangkok and major tourist cities such as Phuket, Chiang Mai and Samui. Earlier this month, Thailands largest shopping mall develop- er, CenLruI PuLLunu, IndehnILeIy postponed its plans to raise 8.86 billion baht through selling units of its property fund due to political violence in Bangkok. Reuters in March this year educated small farmers, small business owners and entrepreneurs (80 percent of them women) across 30 villages on basic business skills and money management practices. The program saw an average increase of 218 percent in par- ticipant knowledge of key busi- ness und hnuncIuI concepLs. The curriculum for the program was adapted from Mercy Corps existing courses currently in use in other Asian countries. The training included busIc busIness und hnuncIuI IIL- eracy topics including market- ing, market assessment skills, cusI-ow unuIysIs, peLLy cusI management, book keeping and basic accounting. In phase two, the program will focus on business plan develop- ment with the goal of increasing economic returns for these en- trepreneur and farmers. It will involve targeted coaching, in- depth small group training and advisory services, and connect these women entrepreneurs wILI hnuncIuI servIce provIders und oLIer resources und oer guidance on all areas which are critical to business growth and success, MasterCard said. The Delta is one of Myan- mars most fertile agricultural regions, but small-holder farm- ers and their families face tremendous challenges due to climate variability, salt water intrusion and poor access to markets, information and agri- cultural technology, said Nilan Fernando, Myanmar country director for Mercy Corps. The entrepreneurs in this program are highly motivated to start and grow their own businesses because the added income improves the health and well-being of their families, and increases the productivity and resilience of communities across the region. From page 9...(MasterCard) ..- .e,: Charoen Sirivadhanabhakdi . ~. ~ , ... ..:q~._ ~._.._...,.~., _e ~.:._._.. qee:.:.~:. .q:.._.. ..,.~~~ ~,_... .~. .e ~..q~, ..'.: ~ ..e, qq.:q, ~. ~._e ..:..._~,_~:..:. q., ._~: . Krung Thai Asset Management (KTAM) . ._.:_~:..._. .e ~e q .. ._. . . . _:. ~~~ ~......~:. e...~,. ~~, . . . .~:~ ~ :. ... .. .~ ~:.~ .q . .. ~ ._~: . .q_.. ._...._.~..,...._~. _~...q: ..,... ..- ..q._..,:.:.._~: ...~~ ~._.~.,..~:..,.._~: e.~ . qee:.:. .q:..q, ..,.~. ._ .. : .. ._~, _~:.,_. .._ . _e. ._ . e..._~..:~..._~: MercyCorps. . ~, ..... . ~ e ~.~ .~.~....:.._ _e._.. .~,......~e~.~ ,~,._...:..q.~_~...~,..: ..:.,_......:.._..~~,...' .... ~. ... .. , .~ . . , .q ..q~~ ~:. ,.~-. . , ..:.~:. .~ ..: q ~ q, . .e ~ . q, ~~~. ._~..:~ . . ~~ ~_ .:. qq q, . ~ .~ .... .:.._ ..|~ ._~:. .q._. IT & TELECOM 27 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Summary Myanmar Business Today mmbiztoday.com Govt Mulls Tech Innovation Centre to Promote IP Rights Move expected to help grow intellectual property rights landscape Su Su M yanmar is planning to set up a technology and innovation sup- port centre (TISC) to strengthen its intellectual property sector, a minister said. The centre will be developed in cooperation with the World Intellectual Property Organiza- tion (WIPO). Ba Shwe, deputy minister, Ministry of Science and Tech- nology, said ensuring intel- lectual property rights will play a crucial role in the economic development of the country. The TISC will help innovators and researchers in developing countries to promote informa- tion technology-related works, create, protect and manage intellectual property rights, the minister said. The initiative involves techni- cuI experLs Irom TSC, omcIuIs from related ministries and representatives from non- governmental organisations. Myanmar has been embracing new regulatory changes re- cently as it gradually liberalises its economy. This includes its telecoms sector which it has opened up for foreign telcos. In June, Ooredo and Telenor beat out more than 10 other shortlisted telcos to win two telecommunications licences. Earlier in November, a law pro- tecting intellectual property was drafted following discussions with local and international ex- perts on copyright, trademarks and industrial design. _., .:. ._ . - _~. .. q:. . . ~_~ .~~ . .:.:..q, ~~~ ,_.._:. .,...~. ~.:~..~: (TISC) ~:. ~_ .: . :.q, _. . .,._~: . ~, _~. ~..~ ._.:_~:..._. ~. .|. ~:~:. World Intellectual Property Organization (WIPO) . . ...| ._ e _e .~ .~~ .~: . ...| . ..: q ~ . :.._ _e. ._~: . . q._ . . . . ,_.._:~, _~._:, . ~ e~, _~ . ..q~ _~...q: ... ~. ~.q..:. . . . .:...:.:_. . ._ ~._._- ...:..q.~.~~. ~ ~.~~..:~.,.~__ .|~ .,._~:. ._.:_~:..._. ,_ . ._: . ., . .. ~ . ~.:~ ~. . ~:~.,_e ,_ .._: ~_. .~ .. ..:. . , ..:._ .~.~.~~.~.:.qq. _~ ....q: e,~...:. ~:~e. .:.. . . ., . . .:.~ ._ . . . _. ~ . ._ _e. ._~: . ~, _~.~ ._.:_~:.. ._. ~,.....:..:._ TISC . ,_ .._:. .~ . .~ ._:q .:. .~ . q:~, _ ~ . _:,~. . . . . ~...:.:.. ~..q.e~..: ~e ~._ ..:.. ~ e .:.. e .:. .|~ .__e.._. Telenor Selects Singaporean Firm as Infrastructure Vendor Apollo Towers to build and manage telecommunications infrastructure in preparation for mobile network rollout Htet Aung T elenor Myanmar has selected Singapore-based t el ecommuni cat i ons infrastructure provider Apollo Towers us un omcIuI vendor to build and manage telecom towers across Myanmar, the Norwegian telecoms giant said. Telenor said the appointment supports its plan of rapidly rolling out a modern mobile communications network in the country. Establishing telecom towers represenLs un ImporLunL hrsL step in the rollout of that net- work and in Telenor Myanmars goal of delivering high quality and accessible mobile commu- nications services to people throughout Myanmar, Telenor said in a statement. Telenor said it will launch in- novuLIve und uordubIe mobIIe communications products and services in Myanmar within eight months of securing an operating license from the My- anmar government, and said it expects the licensing process to be hnuIIsed sIorLIy. We are pleased to be work- ing with Apollo Towers as we enter this exciting phase in the advancement of Myanmars telecommunications industry, Petter Furberg, chief executive omcer, TeIenor Myunmur, suId. We ure conhdenL LIuL com- bination of industry experience and expertise will meet the requirements of Telenors busi- ness plan and ensure the suc- cessful rollout of our advanced mobile network, Furberg added. The partnership between Telenor Myanmar and Apollo Towers provides the platform for future multi-tenancy on towers which will accelerate LIe deveIopmenL oI un emcIenL und cosL eecLIve sIured mobIIe telecommunications infrastruc- ture in Myanmar, Telenor said. Francois Lorelli, chief execu- tive of Apollo Towers, said: We are delighted to ... participate in this revolutionary transforma- tion of the telecommunications landscape in Myanmar. We relish the challenges and the opportunities it presents and are committed to providing world-class infrastructure on time for Telenor. Telenor said as part of its com- mitment to contribute to the local economy, Apollo Towers will be working with a number of Myanmar-based companies in the infrastructure build-out across the country, providing opportunities for local busi- nesses and promoting a more vibrant business environment in Myanmar. Telenor is here for the long run and we are committed Lo IuIhIIIng our promIse Lo support the modernisation of Myanmars telecommunica- tions sector through investing in building state-of-the-art telecom infrastructure which is vital for innovation in other key industries, and will drive the countrys socioeconomic development, Furberg said. Sanjiv Ahuja, founder and chairman of Apollo Towers, said: I warmly welcome the opportunity to partner with Telenor on this exciting project und um conhdenL LIuL LIe deep sector knowledge and in- ternational experience that we can bring to bear will result in a successful project for all parties and will lay the foundation for Apollo Towers to become a ma- jor provider of shared telecom- munications infrastructure facilities in Myanmar. Telenor Group has mobile operations in 12 markets in the Nordic region, Central and Eastern Europe and in Asia, employing about 34,000 peo- ple. It has 161 million mobile subscriptions worldwide, with revenues of NOK 102 billion ($16.6 billion) as of Q3 2013. Apollo Towers provides construction, management and leasing of telecommunications tower infrastructure to mobile operators. Apollo Towers Pvt Ltd Singapore is a subsidiary of Tillman Global Holdings LLC, a Delaware LLC wholly owned by Sanjiv Ahuja. A woman talking on a mobile phone in Yangon, Myanmar. U A u n g / X in h u a Telenor Myanmar . .~:.~._. . ~ .~ . e .q.~._.. ~..:~ ~~ .:.~:. .:~ . ...._ . . , .~. . _e...: Apollo Towers ~:. _., .: . ~. ~, .~ .~ . e .q.~:~| .:.~:. ~_.:q,. ...,.q, ~~ ~ .q..e . ._~: . .,: .~.. - .~ . e .q.. . , ._~ ._e. ..: Telenor . ._.:_~:..._. e.~. Apollo Towers ~:. .q..e.._ Telenor - _.,.: .~ ..~....~.e.q. ~,q~.:.~:. _.,.,.: ..:q~ . .q.~. ~. ~~ ~ ~.:~ ~~ _.._~: . Telenor . ._.:_~:.. ._ . .~ . e .q.~:~|.:.~:. .: _ ..._ .~ . e .q.~, q~ .:. . . ..: . ~~ ~ ~.q..|..: .. ._.. . . ~.. . _ e. _ .. Telenor Myanmar ~.,_e _.,.:.~ ~q_ ~..._. .:._. . . ~ ..~ . . .. ._ .~.e.q.~,..: ..:.~:. .:~ . .... :.. q, q_ . , ..~ ~~~ e...:q~.~ ~.q..| ._~:. Telenor . ._.:_~:..._. .,..._.. ...:..: ...~ . e .q. ~ ~ , .:.. ~, ..: . .:. ~:. _., .:. ~ ..: q ~ . :.._ _e.._~:. ..~._. ~.,~ ~~ . ~_. ..~ ..: q ~ . :.. q, ..:., .:.._~:. Telenor . ._.: _~:..._. _., .:. - .~ . e .q.~_e _e . ~ . ~~ .:..q, ..: q ~ . ~ Apollo Towers . ....|...: q~q._~~~ ~..._.:~~...: _e..._~:. Telenor Myanmar . ~...:.._e.. Petter Furberg ~ ._.:_~:..._. ..,. .. ~.~~_~. ~..~._:q.:. -. ...| .. . ..: . .:.._ Telenor - ..,.~.. ~._... ~ , q~ .:.~:. ~..~.: .~: _. . : . . ..: . .q.. ~. .~ ~ ._ . _e_ ._ ..... ._ e e _~_ ._~: . Furberg ~ ._.:_~:..._. December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com 28 IT & TELECOM Myanmar Summary Facebook to Sell Video Ads Reed Albergotti, Ben Fritz and Suzanne Vranica F acebook Inc will begin selling video advertisements, accord- ing to people familiar with the matter. The ads, which will play automatically in users news feeds may help Facebook capture a share of the $66.4 billion advertisers are expected to spend on US television this year. One oI LIe hrsL uds wIII be u sIorL Leuser - mude specIhcuIIy Ior ucebook - Ior LIe upcomIng Ions GuLe EnLerLuInmenL Corp hIm DIvergenL. L Isn`L known Iow muny oLIer compunIes wIII oer ads in the early days. The ads will play automatically in users feeds, the people familiar with the matter said, regardless of whether users click on them. How long they will be is unknown. In August, The Wall Street JournuI reporLed ucebook pIunned Lo oer uds oI up Lo 1 seconds on both smartphones and the Web. Many advertisers had hoped Facebook would begin selling ads in time for the holiday shopping season but Facebook delayed a launch fearing ads could annoy users. Some advertisers produced videos early in the year, anticipating a summer rollout, and were frustrated when Facebook pushed back the launch. Other advertisers worried ads might alienate users. Facebook founder and Chief Executive Mark Zuckerberg took a personal interest in the video ads and delayed their introduction in part because of engineering problems that made them slow to load. In August, the Journal reported Facebook software engineers improved the back-end technology to speed up ads. It isnt clear how much Facebook will charge advertisers but it is likely to be expensive. Executives told The Wall Street Journal in August Facebook planned to charge $2 million a day to let advertis- ers reach the full Facebook audience of adults aged 18 to 54. We expect video to be more expensive, said Dan Slagen, senior vice president of marketing for Nanigans, a digital-marketing soft- ware company. But were going to see advertisers willing to pay, he said on Monday. TIe deIuyed roIIouL couId prove prohLubIe Ior ucebook becuuse this time of year advertisers can have excess money to spend. Traditionally, Facebook hasnt been a go-to place for that money and video ads will make it a more attractive destination, advertising industry experts said. WSJ Myanmar Summary Facebook Inc ._ - . e ._ ~: _ :.:.~:..~ .q: .. . :.._ _e. ._ ~: . ~..|..,.~.. ,....q..: ...:.~._.:_~:..._e .q._. ~..|._~:_:._ ~.._...:. - News feed ~ ~.~..:~.e:_. ._~:_:....:..__e.._. ._~:_:~.,_e~.._...:.- New feed ~ ~. ~..:~ .e: _..... :.._ _e. _ . . ~. . _ . . .:.~.,_e ~. .|._~: _:.:. ~:. click.. .__e... ....__e... e..: ..:, .~._~:..q._. _.~.~ Wall Street J ournal . .~..e:_..~q Facebook ~.,_e ..~e,..:.. ~~.:. ~:. ~ .~,.: ._~:_:....:. q,~~~ ~.....q, ...._~:. .q._. ._~: _:. .:. ~.,_e Facebook ~:. ~:...q~...~e. ~:.~~~ ._~:_:.:.~ .q:.. . :.q,..: . . _~..: ._ . Facebook ~.,_e ._~:_:.:. ._~: ~.._...:. .~~..: ~e~_e.._~ ..q..._~: ..: ..._~,_~:.q._. Chinese Technology Smuggler Sentenced to Three Years Robert Boczkiewicz and John Shiffman A Chinese citizen con- victed of trying to smug- gle American-made radiation-hardened microchips from California to China was sentenced Wednesday last week to three years in US prison. Philip Chaohui He, the target of a US Homeland Security sting, was arrested in late 2011 at a port near Los Angeles as he approached a Chinese freighter. In his car trunk, agents found 200 radiation-hardened mi- crochips hidden inside a tub of baby formula. US omcIuIs reporL u recenL spIke In eorLs by LIe CIInese government to obtain the spe- cialised, American-made mi- crochips, which are critical for operating satellites and ballistic missiles, as well as protecting military hardware from solar and nuclear radiation. I love my adopted country with all my heart, He said in court last Wednesday. The last thing I would do would be to harm this country. Im sorry beyond words. Senior US District Court Judge Wiley Y Daniel issued a sentence that was about a year less than prosecutors sought and a year more than Hes lawyer requested. The judge said that although He bent over backwards to avoid getting caught, he had otherwise led a productive life and had been a model prisoner. He was charged in Denver be- cause he ordered the microchips from a nearby manufacturer, Aeroex oI CoIorudo SprIngs, Colorado. In custody since De- cember 2011, He pleaded guilty in September to smuggling and conspiracy to violate the Arms Export Control Act. US omcIuIs Iuve suId LIey believe the microchips were purchased on behalf of the state-run Chinese space pro- gram. He has said he believed they were for commercial, not government use. His motive was monetary, not political, he said. Born in China, He moved to the United States in the mid-1990s. In April 2011, while working as an engineer for the California state transportation agency, He used his side business to order 312 radiation-hardened micro- cIIps Irom Aeroex. It is legal to buy such sensitive technology for domestic use, but illegal to export it without US government approval. Aero- ex empIoyees Iound He`s Iurge order suspicious and alerted Homeland Security agents, who initiated a sting. AILer He senL Aeroex u check for the full cost of the 312 microchips $549,654 un- dercover agents delivered them to Hes small company in Oak- land. Although He was arrested carrying 200 microchips, 112 remain missing. US authorities believe those were successfully smuggled to China. Reuters United Nations Calls For End to Excessive Electronic Spying Aye Myat T he UN General Assembly on Wednesday last week called for an end to exces- sive electronic surveillance and expressed concern at the harm such scrutiny, including spying in foreign states and the mass collection of personal data, may have on human rights. The call was included in a resolution drafted by Germany and Brazil which the 193-mem- ber General Assembly adopted by consensus, Reuters reported. The United States, Britain, Australia, Canada and New Zealand known as the Five Eyes surveillance alliance supported the resolution after language that had initially sug- gested foreign spying could be a human rights violation was weakened to appease them. The resolution does not name specIhc counLrIes buL comes after former US National Secu- rity Agency contractor Edward Snowden released details this year of a global spying program by the NSA, sparking interna- tional outrage. General Assembly resolu- tions are non-binding, unlike resolutions of the 15-nation Security Council. But assembly resolutions that enjoy broad international support can carry sIgnIhcunL moruI und poIILIcuI weight. After the resolution was adopted last month by the General Assemblys Third Com- mittee, which deals with hu- man rights issues, US delegate Elizabeth Cousens told the commILLee: We hrmIy beIIeve that privacy rights and the right to freedom of expression must be respected both online and omIne. Cousens said it was impera- tive that human rights and civil society activists be able to use the Internet freely and without fear of reprisal to protect dig- nILy, hgIL uguInsL repressIon, and hold governments, includ- ing mine, accountable. The resolution notes that while concerns about public security may justify the gather- ing and protection of certain sensitive information, States must ensure full compliance with their obligations under in- ternational human rights law. Myanmar Summary ~..q ~, . ~ .q. e .~ _~. ..q._ microchip .:.~:. ~e . e ., .e:.. ~, ~ . . . .. . q, _~......_~~~ ~,~. .:.~. .~:. ~..q ~, ~~ ..: ~ ....~.q, _...~..~. ._~:. .q._. Philip Chaohui He ._ ~..q ~,_._~.._..q.- ...~~.. _e._.. ~~~ ..:...~ ..:~, . . ~, .~ e. .. . , .. . .. . q ._ . , .-..: .~: ~:... _ .., .~ .q. e .~ _~. . . q ._ microchip 200 ~:. e~:.._~ .~. .:.~ q:.e.~q.._~:. .q._. ~..q~,.~:.. . .. ..: ._. . . . . ..: ._ ~q:._ ~..q ~, . ~:. . ~ ..._ ~~ ~ .~: .., ._~:. Philip Chaohui He ~ ._.:_~:..._. UN General Assembly . ~ .~ .q:,. ..: _~_ .. .... .:.~ ~.,~~_..._..~ q.~,_~q, ~~ ~ ~ ~ ~ , .. _. . ~_.:.. .:.- _._ ,e .:.~ ..: _~_ .:~ . . . ..:.. ...q.~.~~.~~:. ~.:.~_.:.qe . ..: .. ._ . ~. ~.q.~ . ..e:~ ._ ~. q .,._ ~~ ~ ~ ... . e. ~ . ~ ~ ~ , . ._.._e.._. ~..q~, _- ~ , _..._~.. ~.,.|. ,e.~ ., ~ ._ ..: _~. .:~.....:. _...q:~ Five Eyes surveillance alliance e .q _ ~_ . .~_ .:.. .:.~:...: _ ~_ .:~.....:.._ .~.~.q. ...e:~.~..~.q._ee.. .:.._~:e..._e~.~~:..:~ . ~ _ .... _~ ._~: .._ . . q._. AUTOMOBILE 29 December 26, 2013-January 1, 2014 Myanmar Summary Myanmar Business Today mmbiztoday.com Mitsubishi Opens Mandalay Service Centre J apanese automaker Mitsubishi has opened a second after-sales service centre in Mandalay in a bid to grab a sizeable share of Myan- mars burgeoning automobile market. Mitsubishi Motors Corp Htet Aung (MMC), Mitsubishi Corp (MC), and their local partners Yoma Strategic Holdings Ltd (YSH) and First Myanmar Investment Co Ltd (FMI) have been working on building a service structure for inspection, maintenance, and repair of Mitsubishi- branded vehicles in Myanmar, following Myanmars recent deregulation of automobile importation. Many Mitsubishi-branded vehicles are already common- place in Myanmar, distributed mainly through the countrys used car market. Mitsubishi said by establish- ing the second after-sales ser- vice centre, following the one established in Yangon this May, services for almost 80 percent of Mitsubishi-branded vehicles currently on the road in Myan- mar will be covered. The company said expanding the after-sales service structure using MMC know-how will contribute to strengthening MMCs brand image prior to commencement of its new car sales. As part of initiatives towards the Myanmar market, MMC announced its intention in October to start new car sales in Myanmar. Mitsubishi said MMC, MC, YSH and FMI are under discus- sions regarding establishment of a joint venture for new vehicle sales and after-sales service in preparation for an expected rapid development and growth of the economy as well as the automobile market in Myanmar. The companies are discussing additional possibilities for mu- tual cooperation in Myanmar in the future, including local production, Mitsubishi said. A BMW 7 Series car. P A C BMW to Sponsor ASEAN Summit 2014 us Om ciul Limoosine Up to 95 BMW premium limousines will service delegates G erman auto giant BMW, jointly with its local part- ner Prestige Automo- biles, announced that it will be sponsoring the ASEAN Summit zo1q us LIe om cIuI ImousIne. The ASEAN Summit will take place in Myanmar as a two-part event in May and November next year. A eeL oI up Lo q unILs comprIsIng LIe ugsIIp BMW 7 Series, the BMW 5 Series Executive Sedan and the pre- mium BMW X5 Sports Activ- ity Vehicle will be deployed to cIuueur LIe ASEAN Ieuders and delegates attending the event, Prestige Automobiles, BMWs authorised importer in Myanmar, said. As a local company, we want to support all the initiatives for the development of Myanmar. After our parent company Oc- tagon International Services co- sponsored the 27 th SEA Games by providing transport service, it is an honour to partner the ASEAN Summit chaired by Myanmar, said Chan Mya, managing director of Prestige Automobiles. CIun Myu suId LIe co-eeL sponsorship for the summit is a part of the companys corporate social responsibility policy. By oerIng LIe besL quuIILy curs Lo LIe Ieuders und om cIuIs, Aye Myat we want to contribute to the successful organising of this summit and make the nation proud. He udded: BeIng LIe om cIuI distributor of BMW in Myan- mar We will do our utmost to deliver a full BMW brand expe- rience to all world leaders and delegates. We will ensure they ure cIuueured Lo LIeIr desLI- nations safely, promptly, and in the best possible condition. Neil Fiorentinos, managing director of BMW Group Asia, said: We are very pleased to be sponsoring the ASEAN Summit for the third consecutive year. As the worlds leading premium automotive brand, we con- stantly strive to maintain our focus on excellence, innovation as well as design, and this is evi- dent in every BMW limousine. This is what makes BMW a be- hLLIng purLner Lo u presLIgIous event like the ASEAN Summit. TIe eeL wIII soon be uvuIIubIe on sales and delivered after the meetings, Prestige Automobiles said. Chaired by Myanmar for the hrsL LIme, LIIs ASEAN SummIL is a symbol of the new dynamic the country has entered into. L Is u reuI pIeusure Lo oer our customers the unique opportu- nity to own the prestigious cars seated by the leaders on the occasion. Our customers can be proud to take part in this his- torical event, Chan Mya said. Prestige Automobiles Co Ltd (PAC) is a subsidiary of Octagon International Services Co Ltd (OIS), which distributes leading brands for machinery and vehicles. OIS also imports premium passenger buses as well as heavy machineries such as construction and mining equipment, cranes and vehicles. Incorporated in 2005, OIS currently has a workforce of over 600 personnel. Myanmar Summary Men walk in front of Mitsubishi Motors Corp's headquarters in Tokyo. T o r u
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BMW . ~:.e..:.. ..|...:.:.. ~e.:..e.:.~:. ~:.e... .~......... ~~.q:~.q, ~~~ ~...,.~:._~...|. ~.. .q ..~ .:~.~_....:. .__e.._~:. _.,.:.q BMW - ~:..:.~:. ~..._ ..,. _e.._ Prestige Automobiles . ._.:_~:..._. _._ ~ .~ . ~ ~. . ~.,_e _., .: .- e_e.~.~~.~~~ ~... ....:.~:...~ .:~..... ._~: . . . ~ . ~ _e. ._ Octagon International Services . _~. ._ .:~ . . . .~:.~.:.. .~: ~ .e e . ..: .q.~, ..: . .:.~ ....|..|~ .:~....._...,:~ ~:. e . . ..~ . .. ... .. ~~ ~ .:~....q,.: ~e.q:._e. ._~:. Prestige Automobiles . .,.,..|,~~: ...._.~ ._.: _~:..._. December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com CLASSIFIEDS 30 SOCIAL SCENES 31 December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com Troy Grifths, deputy managing director of Savills, speaks at the launch. Phyu Tit Lwin Savills delegates at the event. Phyu Tit Lwin Troy Grifths gives a crest to Daw Soe Sint Win (R). Phyu Tit Lwin Richard M Emerson, country manager of Savills Myanmar, pose for a photo. Phyu Tit Lwin Tailand Optimist team celebrates afer clinching the gold medal. Myanmar Yachting Federation Coca-Cola Press Conference Coca-Cola delegates at the press conference. Kyaw Min Coca-Cola Myanmars Managing Director Rehan Khan at the press event. Kyaw Min A Coca-Cola delegate at the event. Kyaw Min 7 Days in Myanmar Book Launch Ceremony A delegate speaks at the event. Phyu Tit Lwin Veteran journalist Denis Gray who wrote an article for the book. Phyu Tit Lwin Melissa Teo and Didier Miller, publisher of the book. Phyu Tit Lwin A panel of delegates at the book launch. Phyu Tit Lwin Delegates pose for a photo at the launch. Phyu Tit Lwin Myanmar Beer promotion at the event. Phyu Tit Lwin Savills Myanmar Ofce Opening Ceremony A Savills representative speaks at the press conference. Phyu Tit Lwin Savills representatives at the event. Phyu Tit Lwin Optimist Team Class @ 27 th SEA Games Sailing Competition Optimist Team Class. Myanmar Yachting Federation Tailand and Singapore Optimist teams. Myanmar Yachting Federation December 26, 2013-January 1, 2014 Myanmar Business Today mmbiztoday.com 32 ENTERTAINMENT Before Myanmar became one of the worlds most attractive tourist destinations, many visitors in the country stuck to the tried and tested Big Four places the lively former capital of Yangon, the calm serenity of Inle Lake, the history and Bud- dhist culture of Mandalay and the vast, temple-clad plains of Bagan. Even today, as Myanmar at- tracts upwards of 1 million foreign tourists a year, alter- native destinations are little known about. But look closely and they are there. There is the lush, abundant Karen state, the mountainous temples of Kachin and the Buddhist Disneyland that is Bago. Little known also are Myanmars beach destinations. Sitting on the countrys western shore, near to the attractive Bay of Bengal, and just a few hours drive from Yangon, lies Ngwe Saung a small, simple, but strik- ing beach destination. Translated as Silver Beech, Su Su Ngwe Saungs beach is 15 kilo- metres long, with white pristine sand and faultless turquoise water. During rainy season the sea gets choppy, making it a dif- hcuIL pIuce Lo swIm, buL In oLIer times of the year, the warm water is the perfect temperature to relax in. As you relax there, coconut palm trees swaying in the wind, looking at the almost empty beach, you quickly real- ise that there are few places like this elsewhere in the world. There are few activity options at the beach, but that hardly mat- ters in such a pristine, beautiful place. Along the beachs north- ern end two quaint pagodas Aureum Palace Resort & Spa: A Place to Stay on a Weekend Getaway in Ngwe Saung sit atop some rocks, while the southern end is dominated by Lovers Island a forest-dense, beautiful island that lies a few hundred metres from the shore. When the tide is down, visitors can walk to the tranquil spot. Other options include snorke- ling, and traveling around by motorbike, but the real reason you are here is to relax in such a tranquil, beautiful spot. Accommodation options are reasonably limited too in 2013, Ngwe Saung had 16 hotels operating 714 rooms. However, one standout place to stay is the Aureum Palace Resort & Spa, Ngwe Saung. The Aureum Palace brand operates out of a range of destinations around the country including Bagan, Ngapali, Pyin Oo Lwin and Nay Pyi Taw, and its high runge oI IucIIILIes on oer LIe In with the impressive reputation that the brand has built around the country. The luxury resort at Ngwe Saung is the largest property in the area, with two-thousand feet of beachfronts, which include luxurious, spacious cottages up Lo hve-sLur sLundurds. Activities at the hotel include vast facilities which include an extensive spa facility, a beachside swimming pool, two restaurants, two bars, as well as access to a nearby golf course and a variety of leisure activities. The hotel can also provide activities for guests, including bouL und hsIIng LrIps, snorke- ling trips, elephant camp visits and cooking lessons, which also include a visit to a local market. Established seven years ago, Aureum Palace Resort & Spa Ngwe Saung houses 97 rooms, one presidential suite with a prIvuLe pooI, hve vIIIu execuLIve complexes with separate swim- ming pools and a beachside boat bar, 55 spacious bungalows and 36 deluxe rooms. The Aureum Palace Hotel chain started in Bagan in 2005 and Ngapali, Ngwe Saung and Pyin Oo Lwin in 2006, Nay Pyi Taw in 2007 and Inle in 2011, and it has more projects in the pipeline. The beachfront. A u r e u m The swimming pool at the Aureum Palace Resort & Spa at Ngwe Saung. A u r e u m A u r e u m Sunset at Ngwe Saung from the resort.