adv.pmd 11/22/2013, 4:13 PM 12 adv.pmd 11/22/2013, 4:14 PM 13 adv.pmd 11/22/2013, 4:13 PM 12 adv.pmd 11/22/2013, 4:13 PM 13 adv.pmd 11/22/2013, 4:15 PM 11 adv.pmd 11/22/2013, 4:15 PM 11 adv.pmd 11/22/2013, 4:16 PM 11 adv.pmd 11/22/2013, 4:20 PM 11 adv.pmd 11/22/2013, 4:21 PM 12 adv.pmd 11/22/2013, 4:21 PM 13 CEO / Chief Editor Dr. Htet Zan Linn Director Dr. Hein Thu Aung, Tin Tun Kyaw Executive Editor Phyo Wai Editors Hein Zaw, Khin Win, Khaing Minn Nyo Contributors Hein Zaw, Myitmakha, Dr.Tin Maung Kyi, Naing Thit, Jacob Andrew Clere, Su Swezin Aung Cover Gipsy Rocker Designers Aung Aung (AN Computer), Thaw Tar Oo Computer Operator Zin Wai Wai Shein Marketing Department January Khine Mon, Naw Keziah, Yadanar, Nan Mo, May Hsu Mo Mo Photographers Aung Kyaw Moe (New Image), Hein Zaw, Gipsy Rocker, Myint Thein Oo (Shweli) Publisher and Copyright Dr. Htet Zan Linn Printer Editorial Board ACUMEN myanmarb2b@gmail.com ceo@myanmarb2bmagazine.com, management@myanmarb2bmagazine.com, editor@myanmarb2bmagazine.com, marketing@myanmarb2bmagazine.com, Advisors Advisors Advisors Advisors Advisors Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet (President's Economic Advisor) Prof. Maw Than Prof. Maw Than Prof. Maw Than Prof. Maw Than Prof. Maw Than (Rector (Ret), Yangon Institute of Economics Yangon) Soe Tint Aung Soe Tint Aung Soe Tint Aung Soe Tint Aung Soe Tint Aung (Special Consultant for Advocacy, PSI Myanmar) Dr. Tun Lwin Dr. Tun Lwin Dr. Tun Lwin Dr. Tun Lwin Dr. Tun Lwin (Consultant, Myanmar Climate Change Watch,Tun Lwin Foundation) Than Lwin Than Lwin Than Lwin Than Lwin Than Lwin (Deputy Governor (Ret), Central Bank of Myanmar) Tin Zan Kyaw Tin Zan Kyaw Tin Zan Kyaw Tin Zan Kyaw Tin Zan Kyaw (Principal, Device Business Management Academy) Grace Swe Zin Htaik Grace Swe Zin Htaik Grace Swe Zin Htaik Grace Swe Zin Htaik Grace Swe Zin Htaik (Media Advocacy Advisor, PSI Myanmar) Office No. 24/26, 4B-C, Race Course Condo, South Race Course Street, Tamwe Township, Yangon. Tel : (+959) 420033355 ~ 66 ~ 77 (Hot Line), (+959) 73045140, 49317457, 73143313, (+951) 8603886, 8603887 Editors Note We are very proud to inform you that we are organizing a unique forum in early March in Yangon at which world-renowned author, professor and mar- keting guru Dr. Philip Kotler will give lectures and interact with people from different strata here. After trying for more than a year, I was able to meet with Dr. Kotler a few months ago. Fortunately, he was very interested in the idea of holding a forum in Myanmar. Myanmar Marketing Forum 2014 Myanmar Marketing Forum 2014 Myanmar Marketing Forum 2014 Myanmar Marketing Forum 2014 Myanmar Marketing Forum 2014 will be a full-day event, the first ever appearance by Dr. Kotler in Myanmar. I am sure this event will create enormous opportunities for those in the business commu- nity. Our main job to link businesses together and we have already received numerous calls of interest and many offers to participate. The forum will be a win-win situation for which we are exerting our best efforts. This week we have chosen Myanmar agriculture as our lead business story. Author Hein Zaw argues at length why investment is so low in this main sector of the country. There are many investors from different parts of the world, but mostly in extractive industries, which reminds us of the need to review the situation realistically from both economic and political perspectives. No investor will throw money in if there are no returns, only risks. But investors are normally courageous enough to take risks if the rewards are big and possible. We need to consider why investors are just trying to invest in extractive industries and not in a sector which will benefit Myanmar more in terms of technology, fi- nance, job opportunities and expertise. One of the reasons seems to be that people are selfish by nature. It is their right to choose to make investments in whatever they like. But the onus is on us to check why agriculture cannot attract attention from outsider investors. In this December edition, we have also picked a story about how newly imported vehicles are affecting the day-to-day lives of people. We have bought about 200,000 cars in the past two years. Most of them are in Yangon, making the traffic terrible for so many people. There are other good articles and we do hope you will enjoy reading them. Your feedback would be highly appreciated. Once again, the team of ACUMEN would like to convey the message that our aim is to promote the development of this nation of 60 million people. Myanmar will definitely be busier in the next couple of years and we should be taking all opportunities for our economic development. A Masthead.pmd 11/25/2013, 2:51 PM 1 ACUMEN 11 oices V During 88 Crisis, We did not have enough food. We imported food from China via Mu Se way to survive. We have to be gratful for that help. U Aung Min Minister of the President's Office of Myanmar "Fighting in jungle is practically difficult to legislate for nationwide ceasefire, choosing better words and sitting at Nyipyidaw office." U Phone Myint Aung Parlimantary Representative In future, we need human resource assistance to stand by ourselves. The trade and investment; which can guarantee for sharing technology for business development, for job opportunities to escape from poverty are warmly welcomed. U Wana Mg Lwin Minister of Foreign Affairs The increase electricity cost will effect to public and local business. The goverment elected by people is ought to explain its reasons and give more time for preperation to the public. At present, the peace process is in step of preperation. Political talks are really needed to hold. I hope that nationwide peace sign will happen before end of the year. Without ceasefire agreement and peace agreement, it is difficult to handle the country issues. I assume that both sides need to go through political talks. To estabilish a peaceful society, we have to forgive all the hatred and grudge rooted from the past. Martti Ahtisaari Former President Republic of Finland U Than Maung Advocate Kelvin Chia Law Firm Voices.pmd 11/22/2013, 4:11 PM 11 Photo Feature adv.pmd 11/22/2013, 6:29 PM 12 adv.pmd 11/22/2013, 6:30 PM 13 News in Brief 14 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Redlink company has extended its Wimax internet network by installing more towers in Mandalay and Bagan, according to the compnay's Vice-Presi- dent U Thein Than Toe. The more network in Myanmar, the better the service would be. That is why, we are extending the network and also we have plans to extend new service centers. We care for customer service." he added. Redlink company have plans to pro- vide 40 microwave towers in Yangon, now we have installed 20 towers." We hope that the network would improve. The network can be available even in- side the apartments," he added. At present, we have installed over 45 towers across Myanmar. When we started in 2008, it was just five towers. Year by year, the number of towers is increased and now it is over 45. At the end of this year, it would be over 50" said Deputy General Manager U Myo Myint Nyunt. The company is ready to provide Wifi service in public during Sea Games sea- son. A Myanmar first sculpture village was es- tablished at Sei-my-gone (10 mile) near Bago in 2012 October and will be com- pletely in early next year. The main reason of the project is to In cooperation with Danish Carlsberg Beer Group and Myanmar Golden Star Myanmar First Sculpture Village Danish Carlsberg: Made in Myanmar attract interest from foreigners on Myan- mar sculpture. Now, foreigners from Chi- na, Japan and South Korea started to come and buy the sculptures. The total quantity of sculptures we have finished is nearly 7000 including human and animal figu- rines" according to U Thant Zin from Kaung Myanmar Aung Company. The area of the village is 50 acres with 22 buildings. The raw materials used is the wood remained during Nargis and 15 local sculptor groups have created those sculptures. In the village, the resort includes swim- ming pool, rest room, golf course for lo- cals and foreigners. The village is now 20 percent finished and the buildings alone will cost about Kyats two billion," he added. A Breweries Co., Ltd. Myanmar Carlsberg Brewery Plant Co., Ltd. held a ceremony of laying foundation for beer factory in Bago Industrial Zone in October. We have good history with Myan- mar since 1993. We came back to Myan- mar. Now we are doing a research to fit in well with the taste of Myanmar con- sumer. Not only beer product, we have plan to produce other products accord- ing to demand of Myanmar consumer. Carlsberg is international brand, so we see great potential in Myanmar," said Mr Daniel Sjogren, Managing Director of Myanmar Carlsberg Co., Ltd. Mr. Mikale Winther, Denmark Am- bassador of Myanmar, said, We are very strong in development assistance, our cor- porates give assistance to Myanmar to reduce poverty to help economic devel- opment, health, education and also de- mocracy. It's a business come here not only to make money, but also benefit for the people and the development of the country. We look after the environment, we use a lot of measures to reduce the energy consumption even make things to help the environment. I actually be- lieve that the country will have a good governance that will facilitate economic development so that poverty can be re- duced and so Myanmar people can en- joy a better life." U Nyan Win, Chief Minister of Bago Region also attended the ceremony. A Myanmar Floating Hotel to be launched Myanmar first floating hotel will be launched in Botahtaung habour near Yangon in December, according to Myan- mar Port Authority. Hla Hla Pa Pa Co., Ltd. , a Myanmar company, was permitted to implement the project. The company bought a engineless 2,000 tonne vessel from Finland for the project. The vessel was renovated into 104 double rooms, and two dining rooms and bars. Myanmar has involved foreign and Redlink extends microwave tower for internet network News in Brief.pmd 11/22/2013, 4:07 PM 14 ACUMEN 15 local investors to build floating hotels by the Botahtaung jetty. The Yangon Port Development has al- ready expanded as a Botahtaung port area. The land area of the port was ex- tended towards the Yangon River in July last year. A local company, Pearl Myay, has worked on the port expansion project. A Myanmar, Thailand, India: Trilateral Highway Plan Japan's $51 million help to modernize Myanmar banking system In 23 rd ASEAN Summit in Brunei, India, Myanmar and Thailand are in the pro- cess of discussing the project of Trilateral Highway". In the summit, Thailand Prime Minis- ter Yingluck Shinawatra, Myanmar Pres- ident U Thein Sein and Japan Prime Min- ister Shinzo Abe discussed Japan's pri- vate sector to join in the project. The total estimate project cost will be US$66 billion. The idea of the highway - from Moreh in Manipur to Mae Sot in Thailand, via My- anmar - was conceived at the trilateral ministerial meeting on transport linkages in Yangon in April 2002. The project and the transport corridor will connect these countries (Cambodia, Laos, Vietnam and Myanmar) with the North-Eastern part of India. A Mr. Mikio Numata, Ambassador of Japan to Myanmar and Dr. Khin San Yee, Dep- uty Minister for National Planning and Economic Development of Myanmar, signed an agreement of grant aid to My- anmar Banking System in October, ac- cording to Japanese Embassy in Yangon. In the project, three facts are includes: modernization of financial sector, partic- ularly strengthening of the operational capacity of Central Bank of Myanmar (CBM) to deal with rapid expansion of economic activities followed by democra- tization and economic reform as well as to prepare for joining the ASEAN eco- nomic community; fund settlement and government bond settlement require huge manual work at CBM even with the cur- rent transaction volume, and thus there are concerns that it will exceed the max- imum capacity as the transaction increases with the expansion of economic activi- ties; settlement of current account and government bond will be automated, and it is expected that the volume of transac- tion at CBM will increase reliability of CBM operation. Central Bank of Myanmar needs to develop in stability of exchange rate and cyber security" according to economist Dr. Aung Ko Ko. Japan International Cooperation Agency (JICA) said that the technological activities will be provided by Fujitsu Com- pany, KDDI cooperation and Daieiwa Re- search Company. The project will start in December and finished in 2016. A News in Brief.pmd 11/22/2013, 4:08 PM 15 News in Brief 16 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Myanmar Business to Malaysia GM Klang Wholesale Myanmar business investors are invited to invest in GM Klang Wholesale, Mr .Dato Lim Seng Kok, General Director of GM Klang Wholesale said. Myanmar got invited to invest in the GM Klang Wholesale, as well as Laos, Viet- nam, and Cambodia," he added. Myanmar is now practicing market economy and some businesses came to Malaysia. In the coming year, Myanmar is expected more investment," he said. GM Klang Wholesale City is strategi- cally located in Bandar Botanic Klang, a new central business district in Klang Val- ley, closely to seaports, airports, major high- ways, and Coastal Ring Road. It is huge market by thousand of Asia investors. GM Kland will provide service of all According to Deputy Minister for Finance and Revenue, Dr. Maung Mg Thein, to implement Myanmar Stock Exchange Market, Myanmar is facing five big chal- lenges: to organize skillful members for Stock Exchange Commission, to build strong Stock Exchange, to have infra- structure, information and technology, to provide capacity building training for com- mission members and staffs, to educate listed public companies. Nowadays, to implement stock ex- change market, there are just only five public companies which are ready for stock exchange market. Actually, 80 pub- lic companies are needed at least," U Soe Thein, Executive Director of Myanmar Se- curities Exchange Co., Ltd. said. The Parliament has approved the Se- Five Big Challenges for Myanmar Stock Exchange procedure steps of Malaysia in registra- tion. The delegate from GM Klang is avail- iable to come and explain all the policy to Myanmar investors, according to compa- ny website. The market is opened in 2012 Octo- ber and it is a huge market that all brands are available with over 15,000 shops. Most investors are from Chin, India, Pakistan, Philippine, and Thailand. A curities Exchange Certificate Transaction Law on June 31 and currently waiting to pass the by-laws to form associated or- ganisations concerned with stock ex- change. In the transaction law, it didn't men- tion about foreign companies to include in the exchange market. Foreign companies still have difficul- ty to play in Myanmar stock exchange market because of the Myanmar Compa- nies Act which was affected in 1914. Now the Parliament is revising to amend the Myanmar Companies Act and will try to announce before 2015" said U Aung Naing Oo, Director General of De- partment of Investment and Companies Administration. A News in Brief.pmd 11/22/2013, 4:08 PM 16 adv.pmd 11/22/2013, 4:16 PM 11 18 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 18 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Cover Story Agriculture.pmd 11/22/2013, 3:46 PM 18 ACUMEN 19 ACUMEN 19 Agriculture.pmd 11/22/2013, 3:47 PM 19 Slackening Sector Slackening Sector Slackening Sector Slackening Sector Slackening Sector Agriculture sector has numerous challenges while it is the mainstay of Myanmars economy contributing 60 percent of the countrys GDP. While much political support needs to be given urgently, theres not enough official effort for improvement. The sector fails to attract much foreign investment as it should. In terms of foreign investment volume it is far less than the extractive industries such as energy, mining, oil and gas sectors. Though there have been more and better relations between the West and the new government, no western investors have so far expressed interest in Myanmars agriculture. And some Asian countries have expressed their interest but are not making any investment in growing crops and are rather interested in building factories like rice mills and rice-steaming plants. Dr. Soe Tun, the Chairman of Farmers Association and joint secretary general of Myanmars Rice Federation, said, Asian interest is only in setting up factories. There s no talk yet about investing in paddy planting. Theres also a downward trend in the number of local companies doing busi ness wi th the farmers for the expressed common good, as is indicated 20 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Old-fashioned agriculture Old-fashioned agriculture Old-fashioned agriculture Old-fashioned agriculture Old-fashioned agriculture A country with more than 30 million acres of land under cultivation, one of the main agriculture countries in ASEAN, Myanmar grows more rice as its main crop. Paddy takes up about 50 percent of the total area, oil crop and pulses and beans about 20 percent. Due to the inability to employ modern farming methods and lack of other requisites, Myanmar s agricultural sector has been conspicuously lagging behind Thailand and Vietnam. Around 1940 Myanmar ranked as the topmost rice-exporting country in the world but this golden era had gradually declined until 1960s during socialist- economy era when it could only export less than two million tonnes. It was only after the new government took office that Myanmars rice export began to climb up to 1.5 million mark. Pul ses and beans, whi ch are generally less in demand on the local market, were exported in 2012-2013, up to 1.4 million tonnes of them. But such farm products as edible oil, coffee and sugar have to be imported from abroad having to spend in millions of dollars. Paddy is grown mainly in good-rainfall regions such as Ayeyawaddy, Bago and Yangon that are often referred to as by the fact of about 60 rice-speciality companies dwindling to a mere 2 or 3. And they might have their own justifiable reasons. In fact, farmers who have been paddy growers since their investors days have t hemsel ves been apparent l y disappointed with their jobs. A man, a farmer for about 30 years, said Its been all the same with my family every year. We havent become any richer. Were doing this farmers job for lack of material resources. Though admittedly this agriculture sector gives jobs to 68 percent of Myanmars population, it cannot raise the living standard of these people. Their average yearly income of about US$200 or 300 just do not meet the basic needs of food, clothing and shelter. Thats why there has been an increase in the number of farmers who, after selling off their paddy fields move to towns and cities, some of them going overseas for better job opportunities. And those few who stay put sticking to cultivation can manage to live a fairly decent life by combining paddy growing business with some other kinds of job such as small scale trading business, whereas the rest of them remain just as miserable as ever, struggling hard to get out of debt burden. Contented by nature, they would be happy with what little mother nature has given them. Cover Story Agriculture.pmd 11/22/2013, 3:40 PM 20 ACUMEN 21 Myanmars rice bowls. As Myanmars agriculture relies heavily on the amount of rainfall the rainy season average is 9 times that of hot season average. Though Myanmar has several useful rivers such as Ayeyawaddy, Thanlwin, Chindwin and Sittaung; using them for irrigation accounts for only six percent of the countrys total land areas. Thats why some say that Myanmar is allowing its precious fresh- water resources to drain away down into the sea. Though the official estimate places the irrigated land at over 13 million acres the actual figures are less than that numbers. Some of the over 200 dams are said to be not of much use to the main crop areas. Myanmar, a t ropi cal monsoon country, has three seasons: summer, rainy season and winter. In the rainy season the Rakhine, Bago and Ayeyawaddy and other coastal areas receives an ample rainfall of 120-200 inches, whereas Mandalay and similar central Myanmar get a scanty 20-40 inches consequently, in the rainy season the flow water would devastate the paddy fields, whereas paddy fields in central Myanmar do not get enough water. The global climate change has effected the Myanmar farmers creating uncertainty about what the weather would be at a particular time. Yet another problem is the yearly i nundat i on of paddy f i el ds i n t he Ayeyawaddy and Bago regions. Weak assurance Weak assurance Weak assurance Weak assurance Weak assurance One of the factors that hinder the development of Myanmars agricultural sector is the continuous use of traditional ways of land cultivation as well as the fact of most farmers being too poor and ignorant of modern farming methods when it rains they would simply start sowing and then they would fertilize the fields with a scanty amount of manure they have been accustomed to for years. Contented by nature, they would be happy with what little mother nature has given them. When asked about their way of growing paddy, they would say, Weve been doing this way since childhood. We just do as we already know. A government agricultural employee said It takes a lot of talking to persuade them to use the seeds weve provided to them. Some farmers just cant wear themselves away from the old-fashioned ways. Lack of insufficient support by the government is also to blame for this state of things. Thereve been frequent media reports on the state-level officials making Kirk Siang/Flickr Eric Brochu/Flickr Theres no market assurance for their products and Myanmar still lacks a crop insurance scheme like the ones in most developed countries. Though for 10 years there have been a free market in place of direct purchase by the government, farmers remain in just the same plight as ever due to lack of crop assurance. Agriculture.pmd 11/22/2013, 3:41 PM 21 22 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 an inspection tour of model paddy fields but it is impossible for a few hundred government employees to do a thorough personal study of thousands of paddy fields, as a farmer of Kawa township, Bago region said, Not a single government employee has ever come to help us. No one has ever bothered to know how many acres of land have been planted with paddy. All they do is a guesswork. Theres no market assurance for their products and Myanmar still lacks a crop insurance scheme like the ones in most developed countries. Though for 10 years there have been a free market in pl ace of di rect purchase by t he government, farmers remain in just the same plight as ever due to lack of crop assurance. The price of paddy and other crops would often plummet a month or two after the harvest and then soar high when there is not a single grain in hands. Poverty-ridden they have but to go with the hard old way as a 60-year old paddy grower said Harvest time is a time for us to clear up our debts. Money lenders want to get the money back. So, weve got to sell our paddy at whatever price they offer. We cant negotiate. Paddy price at the harvest time is about K300,000 per one hundred baskets a price that cant earn the farmers as much profit as they should, when input and output are taken into account. Summer crops can have a yield of 100 baskets per acre but rain crops are less than 40-50 baskets. With such a small profit, Myanmar farmers have a hard time struggling to get out of debt. Formerly the governments loan to farmers was just K10,000 per acre, but this year it is K100,000. The interest rate being still so high, farmers do not ever have enough money for the basic needs of their families much less for recouping paddy planting costs. Even those farmers who are comparatively well-off would not take risk in a situation where paddy prices and other crop prices are unpredictable; pulses and beans which are so heavily dependent on Indias demand are ever more unpredictable in terms of price. Investment still far away Investment still far away Investment still far away Investment still far away Investment still far away Though amply blessed with water and arable land resources, it seems Myanmar cannot attract enough foreign investment in the agriculture sector. Foreign investment in this sector to date is US$163 million (0.48 percent) by 9 companies. In the schedule of investment Cover Story Agriculture.pmd 11/22/2013, 3:41 PM 22 ACUMEN 23 Annual Rates of Agricultural Growth in Myanmar, 1985/86 to 2009/10 Area Production Cereals paddy, GOM 2% 3% paddy, USDA n.a. 1% maize 3% 6% Oilseeds 3% 6% Pulses 7% 9% Horiticulture onion 5% 7% garlic 4% 7% chillie 3% 6% beetle leaves 8% 8% potatoes 3% 5% vegetables 6% n.a. fruits 4% n.a. Poultry meat n.a. 6% Source : Annex Table C11. allowed by the Directorate of Investment and Company Administration, DICA, theres only $192 million (0.44 percent) by 12 companies. In domestic investment it is $547.90 million (0.12 percent). These DICA figures are only for the whole of agriculture sector from which one can safely guess how much it could be in the i nvestment al l owed for the paddy segment. A majority of farmers are hoping for a kind of joint-venture with foreign investors. Said one of them I think itll be of more profitable to us and the investing companies working together. What the farmers want to get from foreign investors is technology and the capital. According to Dr. Soe Tun, the agriculture sector though potentially highly profitable is a highly risky sector. One of the officials of a loan company said, Since 2008-2009 when loan to farmers started there have been cases of debt wrritten off due to the farmer inability to pay back. That explains why theres been a gradual decrease in the member of agricultural loan companies. Not enough input Not enough input Not enough input Not enough input Not enough input In a combined report presented by the Michigan State University and the Myanmar Development Resource Institute it is said that Myanmar spends only $0.06 on research for a product worth $100 compared with its neighbouring countries which spends $0.41 Myanmar still has to import high-quality seeds from abroad, it does not have the technology to produce them locally. The research the ministry concerned did with the help of foreign exports did not produce any practical results. One of the persons deeply involved in agriculture said, International Inst i t ut e of Ri ce Research of t he Phi l i ppi nes had worked wi t h t he Myanmar counterparts here for some 37 Factors of production such as farming machines and energy fuel should be made available at cheap prices, because mechanized farming will play an important role in the countrys future developments. Agriculture.pmd 11/22/2013, 3:41 PM 23 24 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 years. But all they managed to do was research papers and hold seminars. What is needed is practice of research findings. Expenditure on agricultural research is only 0.13 percent of the entire Ministry of Agriculture and Irrigations budget. Myanmars agriculture has two other problems to deal with: land seizure and shortage of labour. What amounts to the monopolization of land by the military and moneyed people has reduced some farmlands to grasslands or simply fenced- off empty compounds. The years 2012 and 2013 saw a series of land ownership problems. A refined agronomist said, Some people have come to think that they have the right to do whatever they like to the countrys land for their own good as well as for the good of their kith and kin to the detriment of the toiling farmers. These agriculture problems will remain difficult to solve. The shortage of labour due to thousands of farmer workers leaving the country for countries such as Malaysia, Thailand, Singapore, and recently to South Korea and UAE has adversely affected Myanmars agriculture, for example by raising labour charges. Factors of production such as farming machines and energy fuel should be made available at cheap prices, because mechani zed f armi ng wi l l pl ay an important role in the countrys future developments. Some ways to change Some ways to change Some ways to change Some ways to change Some ways to change The success of the governments projects of reduction of poverty rests a great deal on the countrys agricultural development. Though there is an explicitly stated policy in this regard, there seems to be not enough attention paid to the agricultural sector. In carrying out reforms, short-term and long-term strategies should be adopted. First farmers will have to be coaxed into the domain of modern methods of farming and also into the culture of exchanging ideas and views with government agencies concerned. On the governments side there still remains I think itll be of more profitable to us and the investing compa- nies working together. I think itll be of more profitable to us and the investing compa- nies working together. Cover Story Agriculture.pmd 11/22/2013, 3:41 PM 24 ACUMEN 25 Myint Thein Oo (Shweli) Agriculture.pmd 11/22/2013, 3:42 PM 25 26 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 a lot more to do for the farmers. The Myanmar farmers association is only a recently formed organization with about two-hundred thousand members of whom only a few hundreds have so far received farming related training. Useful data and information can be effectively disseminated through TV channels. To help relieve the strain on the farmers family budget loan should be extended to them at a lower rate of i nterest. It s now ti me the government started a crop insurance scheme; rice farmers are eagerly waiting for it. In Myanmars agriculture special attention should be paid to international standard research and development for better-quality crop and higher yield. International co-operation should be sought in this field of R&D. Anomalies in global climate coupled with the growing world population in likely to make agriculture all the more important in future. Now that Myanmar is back in contact with the global market, it can expect more opportunities for economic growth, but that can happen only when it switches over to the modern forming method. At the moment people are hoping for changes in Myanmars agriculture. A Myint Thein Oo (Shweli) The interest rate being still so high, farmers do not ever have enough money for the basic needs of their families much less for recouping paddy planting costs. Cover Story Agriculture.pmd 11/22/2013, 3:42 PM 26 adv.pmd 11/22/2013, 4:16 PM 11 28 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Feature 28 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Asean Tiger-Jacob.pmd 11/22/2013, 3:52 PM 28 ACUMEN 29 ACUMEN 29 Asean Tiger-Jacob.pmd 11/22/2013, 3:53 PM 29 C ash. Bricks and bags and buckets of cash. These bills have been the lifeblood of commerce in Myanmar for decades running. Ask yourself, how unsafe does a country's financial system have to be for a business person to prefer to stuff their mattress with kyat notes, rather than keeping it in a bank? Such is Myanmar in 2013 - but not for long. Fi- nance in Myanmar is changing faster than fashion. The last season's options for busi- ness loans and transactions are quickly being outshone by this season's line-up. SWIFT, Visa, MasterCard, Western Union, ATMs and mobile phone SIMs. The op- tions for new approaches in transacting your business dealings are bountiful. How did we get here? Where will it lead? Advertising a Myanmar gold rush" has a certain feeling of fleeting tran-sience and snake-oil salesmanship. To be sure, Myanmar has had a few bumps along the road in its path to devel-opment". This column is the first in a three-part series that will introduce readers to the present financial context. Too often I en- counter major international investors and corporate executives who fly into and out of this country without the slightest grounding in Myanmar's storied financial history. For instance, the 2003 banking crisis. 10 years is not ancient history but if you speak with the portfolio prospectors and carpetbaggers you might be led to believe otherwise. Serious investors ought to understand why there was a banking crisis and what calamities happened as a result. They ought to know what the demonetizations" were and they should be mindful of the money laundering mala- dies that tarnished the reputations of sev- eral tycoons. So we begin. Before you think this is just another business column, you should understand that finance and private enterprise are about more than money. Myanmar's long- broken financial system is directly corre- lated with decades of poor economic per- formance and concomitant human mor- bidity. Fixing access to finance in 30 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Myanmar - a process that has been un- derway in various stages since 1988 - is a necessary condition for long-term, sus- tainable economic growth in Myanmar. Recent reforms are immensely encour- aging, but let us first review how we got here. Under British rule, Myanmar was a source of raw commodities. Teak, oil, pulses, gems, rice - the British thirst for exports could seemingly not be slaked. As such, all early development" efforts were aimed at improving systems to in- crease the export of those commodities. This had its positives (linkages to foreign markets) and its negatives (endemic rac- ism). Scholars will surely argue over these things for decades to come. But it is true that development" as a goal with loftier notions than merely product exports was an objective first pursued under U Nu, Burma's first democratically elected prime minister. Prime Minister U Nu was to be the only elected leader Myanmar would have until the present era. Under U Nu's governance, prospects for the country seemed quite bright. Major infrastructure developments were planned and begun. Reconciliation with the ethnic states seemed possible, for an instant. However, even in the tropics seasons change. Eth- nic chaos crept in, and democracy was abandoned in favor of unity. General Ne Win and his cohort seized power in a coup d'tat in 1962. I do not want to focus on Ne Win, but he must be mentioned. His Burmese Way To Socialism" - an official economic strat- egy which forced the nationalization of all major industries and financial institu- tions, was an economically ruinous policy of epic proportions. Myanmar went from among the wealthiest nations in Asia to the poorest. In many other contexts, a Feature The Myanmar Kyat currency is exchanged for US dollars in Yangon, Myanmar. Asean Tiger-Jacob.pmd 11/22/2013, 3:53 PM 30 ACUMEN 31 leader like Ne Win would have been ousted by a dissatisfied populace, but what he lacked in economic acumen he pos- sessed in cruelty and military cunning. All democratic expression was shut-out, even going so far as to dynamite the Stu- dent Union building of the University of Rangoon. The Student Union had been a symbol of free and democratic expres- sion and public gathering. Blowing it up sent a very clear signal that such senti- ments would no longer be tolerated. Ne Win held ultimate power in one position or another until the events of 1988. After 1988, General Than Shwe became the new strongman of Burma, officially rebranding the country as Myanmar." (Incidentally, both 'Myanmar' and 'Burma' reference the Bamar ethnic group and mean the same thing, etymologically land of the swift and strong ones.") Despite not being universally loved, Senior General Than Shwe's junta embarked on a shift to i ndust ri al pri vat i za-t i on, opening the country to ma- jor private industry and fi- nance for the first time since the early '60s. (Ne Win had made some minor moves to- wards privatization, begin- ning in the mid-1970s, but they were limited in scope and focused on agricultural production.) So, while the nation was disheartened by the arrest of Daw Aung San Suu Kyi and the de-legiti- mization of the elections of 1990, some things changed. The first private bank since 1962 began operating i n 1992. Several ot hers started shortly thereafter, CB Bank ATM in Yangon, Myanmar Asean Tiger-Jacob.pmd 11/22/2013, 3:53 PM 31 32 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 many of them had ownership and invest- ments entangled with newly re-arrang- ing and forming military conglomerates. For a few years it seemed as though Myanmar might be able to emulate what was happening in Vietnam during the same time period. Vietnam had also shed its socialist mantle and embraced market reforms under its doi moi approach. In- ternational interest in the region was high, but the legal and regulatory environment was far from clear in Myanmar. Invest- ments flowed into other Southeast Asian nations where the frameworks and fu- ture seemed a bit more defined. Nevertheless, domestic entrepreneurs did not need to wait for international in- vestors to pursue the opportunities they were seeing right in front of them. In this newly loosened market economy, busi- ness opportunities proliferated. Construc- tion boomed. Private banks blossomed (too much of that blossoming coincided with the blossoming of poppies in Shan State). Loans were granted - a lot of loans, in fact. Far too many. There was a loans crisis in 1996 that provoked the current rigid regulations on loans to SMEs. Dur- ing the '96 loans crisis, non-performing loans reached as high as 50 per cent All that irrational exuberance produced a regulatory backlash that explains the plight of SMEs to obtain loans in the cur- rent environment. The loans crisis aside, public appe- tite for financial products still could not be Those who think that ATMs only just made it to Myanmar might be surprised to learn that Mayflower Bank launched Myanmar's first ATM in 1997. Yes, 1997. Feature Asean Tiger-Jacob.pmd 11/22/2013, 3:53 PM 32 ACUMEN 33 met by the fledgling banks on the '90s. Entities referred to as general service companies" (GSCs) arose and began craft- ing Ponzi-esque schemes. The (GSCs) were creatures of Myanmar's restricted financial environment in the late'90s and early '00s. They were not actual, regis- tered banks and they flaunted the laws governing financial institutions, despite ef- fectively providing money lending services similar to banks. You could buy shares" and received guaranteed dividends. It seemed too good to be true. It was too good to be true. Around this same time, those intrepid international corporates who had moved into Myanmar in the early '90s - Pepsi, Standard Chartered, Levi-Strauss, etc. - all had to pull back out. Starting around 1997, the United States, Europe and Ja- pan began to target increasingly restric- tive sanctions against the junta and its affiliates. This had the effect of choking the brief, nascent economic growth the country had experienced during the pre- vious handful of years. Undeterred, Chi- nese and Thai businessmen were all to happy to fill that economic vacuum and kept some of the foreign investment mo- mentum going. Those who think that ATMs only just made it to Myanmar might be surprised to learn that Mayflower Bank launched Myanmar's first ATM in 1997. Yes, 1997. Asia Wealth Bank (AWB) was even working on developing inter-net bank- ing around the same time. It was all very promising. What happened? Just as the future of banking in Myanmar seemed to be heading into exciting new frontiers, the entire industry realized it was built on pillars of sand. So what happened in 2003? Like any good banking crisis, rumors played a major role in provoking a bank run. Sev- eral of the GSCs went bankrupt. The col- lapse of the GSCs began in 2002 and shook public confidence in Myanmar's fi- nancial sector. In a country with decades of financial instability behind it, rumors that the current boom was a fiction were all too easy to believe. Rumors spread in early 2003 that there was a crisis at AWB, Myan- mar' s l argest private bank at the time. As ear- ly as February 6, 2003, l ong queues were f ormi ng t o withdraw de- posits. The gov- ernment began issuing official statements on February 9 aimed at restor- ing confidence by reminding depositors that AWB operates under the su- pervision of the Government of Myanmar and its Central Bank - such st at e- ments did not restore confi- dence. The bank run continued and spread to other banks. Limits on maximum weekly with- drawals were soon initiated, followed by more stringent limits. By February 24, the maximum weekly withdrawal amount was equivalent to about $100. The Cen- tral Bank provided some liquidity assis- tance for banks suffering from the crisis, but orders were also given for loan terms to be immediately redrawn. In many cas- es, borrowers were required to repay 20 to 50 percent of the amount of loans re- ceived before the end of March. It would take a full year before banks would return to normal operations. How- ever, the regulatory backlash to the crisis was severe. The capital adequacy ratio was replaced by an equity to deposit" regulation requiring banks to restrict de- posits to no more the 7-times the bank's paid-up capital. Also, the main crisis-af- fected banks of AWB, Mayflower Bank and Universal Bank ultimately did not sur- vive. Money laundering allegations shut- tered whatever chance they might have had at resurgence. KBZ, Ayeyarwady, AGDB and CB rose from the ashes to be- come the new dominant players in Myanmar's private banking sector. Check out part two of this series in the next issue of Acumen where we will examine the current players and forces in Myanmar's increasingly dynamic finan- cial environment - from microfinance to retail banks to investment funds.. A Asean Tiger-Jacob.pmd 11/22/2013, 3:54 PM 33 34 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 34 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Feature Gas Pie Story.pmd 11/22/2013, 3:57 PM 34 ACUMEN 35 ACUMEN 35 Gas Pie Story.pmd 11/22/2013, 3:57 PM 35 36 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 As China has started enjoying natural gas from Rakhine State being sent via the gas pipeline that had been constructed for three years, lives of residents along the pipeline have changed. A farmer who had been working on ten acres of farmland in Kho-mone Village of Kyaukme District in North Shan State was able to send his children to school while he grew his farmland four years ago. But now he is concerned about his uncertain future following the pipeline construction. He received K1 million for two-acre land as a compensation for having to let the pipelines cross on his farmland. But he said it's unfair to be given just a com- pensation of K1 million as the soil in his farmland was severely damaged by the pipelines. He can earn the amount he received in a year growing crops on two-acre farmland where the pipelines have been placed in trenches. That fertile soil has been damaged so much so that it can no longer be used as farmland. He can earn about K800,000 every year if crops are grown in this soil. But now he has lost his annual income from crops as the soil were damaged. Soil damage has reduced my fam- ily income directly. Besides, there are no big trees in our surroundings as they were cut down owing to the pipeline project. The deforestation due to the pipe- line has impacted hugely to the environ- ment. As a result, weather conditions are unfavourable for agriculture that we de- pend on," the farmer said. He has no idea how to make a liv- ing for his family in the coming years due to soil damage even though it has been said he has received K1 million as a com- pensation for two acres, he continued. As the reserve forest, farmlands and the orchards have been removed in 21 townships along the pipelines from Rakhine State to the border between Myanmar and China, perennials cannot be grown any more in the damaged soil where the pipelines have been placed in trenches. Although the Chinese firm has pro- vided compensation money to the affected locals living along the pipelines, they are facing difficulty in growing crops and it will have to take about 50 years to re- cover from the damaged soil, said a farmer from Kho-mone Village of Kyaukme Dis- trict. Perennial crops can't be grown in the pipeline areas. As they [the Chinese company] have dug trenches to place the pipelines, soil were damaged. Now I can't grow crops in the right season and I can't afford to do anything since land repair costs too much in terms of money as well as time. I think I can grow crops only after recovering from the damaged soil," said U Myint Han, a farmer of Kho-mone Village. In addition to many hardships born of inability to grow crops on account of the damaged soil, communities along the route of the pipelines are suffering from unfair compensation for farmland dam- age, environmental impact and irrespon- sible attitude towards potential explosions and leakages, said a resident of Mandalay. We have difficulty in making a liv- ing. We can't grow crops and besides we have not received a decent compensa- tion for our damaged farmland. We have reported on our hardships not only to the Chinese firm but also to the local authori- ties. However, none of them has given much attention for the grievances," he explained. It is reported that Shwe Gas Pipe- line was constructed in 2009 after sign- ing MOU as a joint venture between Myanmar Oil and Gas Enterprise under the Ministry of Energy and China National Petroleum Corporation (CNPC), the Chi- nese state-run firm and completed in June 2013, crossing through 800 kilometers within Rakhine State, Magway Region, Mandalay Region and Shan State and 12 billion cubic meters of natural gas per year will be transported from Kyaukphyu of Rakhine State to Kunming, the capital city of Yunnan Province in China. Many f arm- l ands, orchi ds, mangroves and for- ests in Kapaing Vil- lage, Lakekhamaw Village and Lar- akyun Village in Kyaukphyu Town- ship and four vil- l ages of Taung- philar Village Tract in Ann Township and Rakhine State have been affected by pl aci ng t he pipelines, accord- ing to somes envi- ronmentalists. We've found that many acres of man- grove have been destroyed by the Kyaukphyu-Kun- ming natural gas pi pel i ne. No re- pl acement has been found so far. And some of the forests on the Yo mountain range in Ann Townshi p along the pipeline have severely been damaged. As the company's heavy bul l dozers have moved the earth on the mountain to place the pipelines, many forests have been destroyed. Such environmental damage has affected local residents depending on environment to make a living," said U Maung Maung Thein Pe, chair of Yetkh- ita Environmental Conservation Associa- tion. The company in collaboration with the government has confiscated farmlands on the grounds of the pipeline projects and they have made local residents re- ceive unfair compensation for losing farm- lands. Everyone knows whether it is fair to do so or not. We've not known whether 36 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Feature Gas Pie Story.pmd 11/22/2013, 3:57 PM 36 ACUMEN 37 or not the authorities concerned have accepted bribes there. But it's no need to say how the persons concerned have become prosperous although local people turned into farmers without farmland because of the pipeline projects. We'd like to request not only the authorities con- cerned but also domestic companies and foreign firms not to confiscate farmlands as there are plans to build industrial zones and now towns. We willingly welcome the projects for local development," said U Tun Lwin, chairman of the Committee of Watch Group for the Natural Gas Pipe- line in Kyaukphyu. Shwe Gas Pipeline Project will likely pro- vide Myanmar with about US$ 1.8 billion, the first $900 million of which comes from the gas pipeline and the other $900mil- lion from the crude oil pipeline per year and accordingly, Myanmar will earn $29 billion by thirty-year delivery of natural gas from Rakhine offshore's Shwe Gas Project, according to figure released by Shwe Gas Movement, a civil society group. Natural resources should be utilized as tools for immediate development of human resources and the government can use those earnings from the gas pipeline projects for national development process, said Dr Nay Zin Latt, an advisor of Presi- dent U Thein Sein. Well, let's think about how long it will take to conduct capacity building for a soul. If one wants to earn a doctorate, one needs to have passed the tenth stan- dard first and go on trying to get a de- gree and work hard to gain a master degree and then finally one has to try to achieve PhD. How long will it take to pass this process? Of course, one has to spend many times on passing it. Had we looked on such process without utilizing natural resources as tools for human resource de- velopment, we would have wasted so many times. That's why we need not only extract natural resources but also to build up human capacity at the same time," he ACUMEN 37 Gas Pie Story.pmd 11/22/2013, 3:58 PM 37 38 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 explained. In addition, the prices of land plots along the Mandalay-Muse highway have dramatically gone up, according to main real estate agents in North Shan State. Land has been in demand as soon as the pipeline project commences. Buy- ers offered exorbitant prices we've never heard for the land plots. Farmers have willingly sold their land because of good price. Now they want to buy those land plots back, they can't afford," said a prop- erty agent of Kyaukme. The prices of land plots along the Mandalay-Lashio highway that have in- creased about five of six times since the start of the pipeline project in 2008-2009 have reached more than two figure mil- lion per land plot in 2011-2012, real es- tate agents say. Land prices have risen not only along the Mandalay-Muse highway but also around the border area close to China, said a real estate agent in Muse. Chinese buyers come here to pur- chase land plots and they offer prices ranging from two figure million up to three figure million for them," he said. Although local residents are delighted that they [the Chinese company] have supported in education and health sec- tors for the rural areas along the route of the pipelines, the affected locals along the route of the pipelines have been facing difficulty in making a living as they have not given aids in economic sector for them, said U Myint Han, an affected farmer in Kyaukme District. They have provided us with school buildings and health care centers in some rural areas, but have not supported eco- nomic development here," he said. It is said that local residents are worried about po- tential hazards in the future because foreign-based Shwe Gas Movement, a civil society organi- zation pointed out that the Chinese company dug trenches only about two meters deep in 21 townships along the route claiming it was deep enough to be safe instead of digging them five met ers deep re- quired under inter- national standards. C h i n e s e state-run media say that Chinese people are enjoying full energy through gas transported on the gas pipeline from Kyaukphyu of Rakhine State while local residents in Rakhine State western part of Myanmar are calling for adequate elec- tricity power. Chinese communities in many towns including Kunming in Yunnan are pro- vided with electric power generated by gas transported on the gas pipeline from Kyaukphyu. They (the authorities concerned and the Chinese company) promised us to pro- vide 20 per cent of 200 million cubic feet earmarked for Myanmar. So far, we don't have electric power. We've known nei- ther when the gas turbines will arrive here nor how gas will be allocated to the company and local residents. That locals in Kyaukphyu enjoy electricity paying K35 per kilowatt-hour means the first kilowatt- hour not all. Locals have to pay K460 the remaining kilowatt-hours. I think 20 per cent will be mostly used for special eco- nomic zone in Kyaukphyu," said a resi- dent from Kyaukphyu. Kyaukphyu's local residents are still depending on the electric power gener- ated by diesel engines paying K450 per kilowatt-hour and have not heard that charges for electricity will be reduced, he said. Although natural resources such as oil and natural gas have been extracted by the governments along the history to sell them to the neighbouring countries, they are not able to fulfill the needs of electricity for local residents in Rakhine State, said another resident in Kyaukphyu. We have to give a lot from our state, but we've got only a little back. Local people along the route of the pipelines not only in Rakhine State but also in central part of Myanmar and Shan State have many difficulties due to the pipelines. We have protested against the pipeline projects since the start of the projects because the company has failed to have transparency and to give proper compensation for the farmlands along the pipelines," he said. Gas delivery has been launched in August 2013 via the gas pipeline from Myanmar to China and some of gas from sub-terminals that have been installed in Kyaukphyu of Rakhi ne State, Yenangyaung of Magway Regi on, Taungtha of Mandalay will be used for local residents living in those townships, according to the government. Gas will be shared with local people in some townships along the route of the pipelines and 20 million cubic feet for Kyaukphyu Township, 23 million cubic feet for Yenangyaung Township and 75 million for Taungtha Township will be used, according to the government. A Feature Gas Pie Story.pmd 11/22/2013, 3:58 PM 38 adv.pmd 11/22/2013, 4:17 PM 11 40 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Feature 40 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Are car Story.pmd 11/22/2013, 3:50 PM 40 ACUMEN 41 ACUMEN 41 Are car Story.pmd 11/22/2013, 3:50 PM 41 U Yin Maung, about 45, is disappointed to see a long queue of vehicles under the Hledan flyover and he think he will have to spend about half hour to pass through the Hledan stoplight due to such traffic jam. He coul d go t o hi s of f i ce i n Shwegondai Tower l ocat ed i n Shwegondai Township from Kamaryut Township where he live in about 20 min- utes before and but he have to lose nearly one hour or more than 40 minutes to go to his office on such occasion when many roads are heavily congested, he groaned with disappointment. There is increasing of new model cars day by day. We have to spend too much times on the road because of much traffic congestion. It is no longer easy for us to go by car to one place to another," he added. Before 2011, there were a few people who could have own cars in Myanmar because vehicles worth around K100 mil- lion each were beyond the reach of ordi- nary people and however, the car mar- ket nearly dead has changed owing to the government's release of policy on car importation in September 2011 after U Thein Sein government has taken power. Despite such a release of car importation during 2011, the prices of vehicles are still high in comparison with those in glo- bal car market, analysts point out. No matter how some people criticize, the prices of Toyota Caldinas have dra- matically slumped from around K90 mil- lion - K1 billion before up to around K20 million after releasing policies on car im- portation, the market sources say. If you came to see Hanthawaddy Car Trading Compound several years ago, you might found dealings in cars were de- pressed. It was not easy to sell even a car at that time. If one broker had sold a car, he enjoyed much brokerage. He was so happy as if he won the government's lottery," said Ko Zaw, an veteran broker who has had a 20-year experience in car dealings. As almost everybody can import au- tomobiles at present, those who want to 42 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 import new model cars have more op- portunities now than the previous years, said U Zaw Moe Kyaw, a car dealer. Having seen the arrivals of tens of thousands of imported cars after releas- ing policies on car importation, he is think- ing of venturing into car importation of- fering a Japan motorcar company to co- operate with him in doing so, he said. I've offered a Japan company for making a joint venture in importing cars made in Japan and it is too early to re- veal the name of Japan Car Company. I intend to open showrooms in both Yangon and Mandalay. Besides, I want to run car service centers that can offer the best service, but I can't find the suit- able places yet as there are many car showrooms that have already opened in many strategic points around Yangon. Japanese businessman fears whether our business is OK because of high prices of land rental here," he added. In spite of unprecedented range of new model vehicles flooding into the country, there need still many car ser- vice center that can offer ex- cellent service for those new model automo- biles imported and he has thus de- cided to set up t he car ser- vice centers in association with Japanese experts, he said. The maj ori t y of i mport ed cars i n Myanmar are Probox, AD Van and Honda Fit, all of which are worth around K10 million, say the sources of car im- porters. Myanmar government has earned nearly K500 billion of revenues from more than 153,000 cars that have been im- ported within 18 months between 25 Oc- tober 2011 and 6 April 2013, according to announcement of Customs Department. However, there are many unlicensed vehicles that are being smuggled into the country from the border areas and those unlicensed cars can hurt the domestic car market, car dealers say. Some smugglers import vehicles through the illegal routes and then they plot to get licenses for their smuggled automo- biles. The ar- Feature Are car Story.pmd 11/22/2013, 3:51 PM 42 rivals of many unlicensed cars harm all of us, car importers, dealers and brokers legally doing business," said U Zaw Moe Kyaw. Some of the foreign companies that are interested in investing in car busi- ness come to take the entry of unlicensed vehicles smuggled from the border areas into the country into consideration, he said. Japan companies have been think- ing of investing in Myanmar since 2011. Having seen unlicensed cars entering the domestic market, some of them hesitate to do so," he added. The majority of those unlicensed automo- biles may ACUMEN 43 come from China and they are being smuggled through the illegal inland routes into the country, said a man of Motorcars Importers & Sellers Association. It is reported that action is taken against both those who have smuggled unlicensed cars into the country and those who have issued fake licenses for the smuggled cars by the government depart- ments such as Road Transport Adminis- tration Department and Directorate of Trade. It is heard that as the import of the partly damaged cars can hurt not only the do- mestic car market but also the state's revenues, the companies that have broken the rules and regulations such as On Time Authorized Agency, Cherry Cus- toms Clearing Agency, Grade One Import & Export Agency, Safe Mover Import & Export Agency and Alliance Freight For- warding Agency. Punishment is putting a ban on the import of cars just for one year. Lawbreak- ers do not care such kind of punishment. If their names are banned to import ve- hicles, the other names can be used for importing cars. Those lawbreakers should be severely punished," said Ko Nyan Lin Aung from Farmer Auto Car Showroom. In the market, there is a widening gap of prices between the legally imported automobiles and the partly damaged vehi cl es i m- p o r t e d Are car Story.pmd 11/22/2013, 3:51 PM 43 44 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 breaking the rules and regulations and unlicensed cars smuggled through the il- legal inland routes and although a legally imported Land Cruiser sells for around K50 million, the same type of that car in- cluded in the kind of the latter is sold for just around K7 million, it is said. Motorcar licenses are issued for those unlicensed vehicles in the branches of Road Transport Administration Depart- ment in each of States and Regions and such measures encourages the lawbreak- ers who have been smuggling unlicensed cars, the market sources say. On the other hand, a person who wants to import a car need to submit a legal document known as slip stating that the car is being imported to replace a former one and as such a slip costs around K12 million in the market, it is hard for a person without an old car or a slip to import a car through the legal chan- nel, the car dealer sources say. Road Transport Administration De- partment has announced that it receives old cars for substitution scheme depend- ing on serial alphabets in Myanmar that it has issued so far, it will receive them both Myingyan and Insein. The old cars are so much that they cannot be put into the blasting furnaces," said a high rank- ing official of Road Transport Adminis- tration Department in Myinthar. Road Transport Administration De- partment has received US$97.35 of reg- istration fees for issuing licenses for 27,971 cars from the time of permit to import cars up to 14 June 2012, according to announcement of Ministry of Railways Transportation. The prices of cars in the market in Myanmar are 15 percent to 30 percent higher than those all over the world, ana- lysts on the car markets say. The car ownership condition has increased from two persons in one thou- sand people before 2010 to twenty in one thousand in 2013, point out CIA World Fact Book, a watching website posted by CIA. Accordingly, opportunities concern- ing rules and regulations imposed for car importers and car prices may meet the international standards, say the sources of analysts on the car markets. A relying on span of cars from the start 2014 instead of serial alphabets. There are few old cars here. Then how do they [the authorities concerned] go on? They should practice the system as some foreign countries do. No slip is needed to import cars there. They im- pose tariff and other taxes on vehicles depending on type of car, manufactured date and model. If this system is adopted in our country, there will not be partly damaged cars and unlicensed cars smuggled in the market," said Ko Kyargyi, a broker of Yangon. The figures of Customs Department are quoted as saying that among the im- ported cars, 90 percent is imported for household use, 1.5 percent for buses and coaches and 10 percent for trucks say the sources of Motorcars Importers & Sellers Association. No matter how much we do, our government departments are always blamed for something. They say we de- lay receiving old cars. I want them to come and see here. There are rarely spaces where so many old vehicles are placed in the compound of blasting furnaces in Feature Are car Story.pmd 11/22/2013, 3:51 PM 44 adv.pmd 11/22/2013, 4:18 PM 11 46 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Interview First, could you please tell me how you started and First, could you please tell me how you started and First, could you please tell me how you started and First, could you please tell me how you started and First, could you please tell me how you started and what you are doing now? what you are doing now? what you are doing now? what you are doing now? what you are doing now? I noticed the coffee plants when I went to Pyin Oo Lwin and Thipaw as a tour guide many years ago. I went to France in 2001 and soon afterwards, I got a job in a French chocolate company. The company wanted other products that are simi- lar to their existing one. As chocolate and coffee are related, I told them quality coffee is available in Myanmar. I can say this is the start of Ananda Coffee in Myanmar. Then I started the business of buying coffee beans from Pyin Oo Lwin through the Ministry of Agriculture and Irrigation. What we are doing now is producing coffee by growing it by ourselves. We also buy coffee from the farmers if required. We process it by ourselves. We grow cocoa and produce chocolate first in Myanmar. We The custom of coffee drinking has become deeply-rooted in the world and Myanmar is no exception. Coffee market has grown rapidly with people's lifestyle changing towards more international tastes in this country with changing economic systems. Although Myanmar has favourable land, water and climate for coffee plants, the area under coffee is still low which means there are opportunities for those who want to grow coffee. Daw Soe Amy Kyaw, Managing Director of Ananda Coffee Production and Distribution Company shares her experiences with the ACUMEN which would be of benefit to those who are interested to grow coffee. 46 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Anada or A coffee which reaches france.pmd 11/22/2013, 3:48 PM 46 ACUMEN 47 have opened a coffee shop called Ananda Coffee Shop'. It's our present business. When you di d i t, the government made connecti ons When you di d i t, the government made connecti ons When you di d i t, the government made connecti ons When you di d i t, the government made connecti ons When you di d i t, the government made connecti ons between you and French and European businessper- between you and French and European businessper- between you and French and European businessper- between you and French and European businessper- between you and French and European businessper- sons, didn' t it? Were you successful then? sons, didn' t it? Were you successful then? sons, didn' t it? Were you successful then? sons, didn' t it? Were you successful then? sons, didn' t it? Were you successful then? We were very successful. The government gave a lot of supports. We f i nd t he cof f ee shop i n t he pamphl et t oo. It i s We f i nd t he cof f ee shop i n t he pamphl et t oo. It i s We f i nd t he cof f ee shop i n t he pamphl et t oo. It i s We f i nd t he cof f ee shop i n t he pamphl et t oo. It i s We f i nd t he cof f ee shop i n t he pamphl et t oo. It i s menti oned as No. 1 i n France si nce 1999' . Then how menti oned as No. 1 i n France si nce 1999' . Then how menti oned as No. 1 i n France si nce 1999' . Then how menti oned as No. 1 i n France si nce 1999' . Then how menti oned as No. 1 i n France si nce 1999' . Then how much coffee did they accept? much coffee did they accept? much coffee did they accept? much coffee did they accept? much coffee did they accept? European magazines wrote cover stories about our coffee at that time. And our Myanmar coffee was awarded a prize as the sixth in the top ten coffees of the world. We met with both radio and television for coverage of our success in coffee business. The media said they recorded it in their history for getting pure coffee from Myanmar. It all happened in France. I' ve heard Ananda reaches even firms like Starbucks. I' ve heard Ananda reaches even firms like Starbucks. I' ve heard Ananda reaches even firms like Starbucks. I' ve heard Ananda reaches even firms like Starbucks. I' ve heard Ananda reaches even firms like Starbucks. So could you please tell me about it? So could you please tell me about it? So could you please tell me about it? So could you please tell me about it? So could you please tell me about it? We distributed Myanmar coffee to European countries such as France and Germany before sanctions were imposed. We distributed coffee to America through a friend of ours as he wanted it. That's why it reached Starbuck. What happened to your market after the sanctions? I What happened to your market after the sanctions? I What happened to your market after the sanctions? I What happened to your market after the sanctions? I What happened to your market after the sanctions? I think many changes took place. think many changes took place. think many changes took place. think many changes took place. think many changes took place. Of course, there were many changes. We also lost a great deal. We lost all our customers. But the one that stood firmly beside us was Cafe Buddy which runs coffee bars which are the oldest and the best in the world. It is in Rue Satonore in Paris in France. It has joined hands with us undauntedly dis- regarding sanctions. It was very satisfying. How are you distributing in the local market? How are you distributing in the local market? How are you distributing in the local market? How are you distributing in the local market? How are you distributing in the local market? Regarding local markets, we are mainly distributing only to such high level markets as hotels, international restaurants, coffee bars and well-known super markets. Coffee mix has a market here as many people begin Coffee mix has a market here as many people begin Coffee mix has a market here as many people begin Coffee mix has a market here as many people begin Coffee mix has a market here as many people begin t o dri nk i t . There are al so a vari et y of l ocal and t o dri nk i t . There are al so a vari et y of l ocal and t o dri nk i t . There are al so a vari et y of l ocal and t o dri nk i t . There are al so a vari et y of l ocal and t o dri nk i t . There are al so a vari et y of l ocal and foreign brands. Then don' t you have difficulties when foreign brands. Then don' t you have difficulties when foreign brands. Then don' t you have difficulties when foreign brands. Then don' t you have difficulties when foreign brands. Then don' t you have difficulties when you produce onl y pure coffee mai nl y targeti ng onl y you produce onl y pure coffee mai nl y targeti ng onl y you produce onl y pure coffee mai nl y targeti ng onl y you produce onl y pure coffee mai nl y targeti ng onl y you produce onl y pure coffee mai nl y targeti ng onl y high level markets without producing coffee mix? high level markets without producing coffee mix? high level markets without producing coffee mix? high level markets without producing coffee mix? high level markets without producing coffee mix? Our line of business is only pure coffee of Myanmar. As it is coffee mix, it is different from production of pure coffee. We don't try to enter that market as it is a different line. Our mis- sion and vision are very different from theirs. What kinds of competition are there in the pure cof- What kinds of competition are there in the pure cof- What kinds of competition are there in the pure cof- What kinds of competition are there in the pure cof- What kinds of competition are there in the pure cof- fee market now? fee market now? fee market now? fee market now? fee market now? Of course, there is competition there. In some places, cus- tomers are taken by someone at a time and then taken by another later alternatively. One has to struggle for oneself as there is competition. One of our advantages is that our business focuses more on quality than on quantity. These high level mar- kets like only our coffee. Tourism industry is now open. As foreigners have coffee drinking culture, they like to drink only pure coffee. As l ocal producti on i s smal l , how about the market As l ocal producti on i s smal l , how about the market As l ocal producti on i s smal l , how about the market As l ocal producti on i s smal l , how about the market As l ocal producti on i s smal l , how about the market penetration of foreign products or brands? penetration of foreign products or brands? penetration of foreign products or brands? penetration of foreign products or brands? penetration of foreign products or brands? There are imports. How did they enter? They provided coffee machines. When there were sanctions previously, export was difficult. We ourselves provided coffee machines. We had to face many problems including the machines that broke down. So we stopped giving machines and ran by controlling quality and service. Now we often find foreign companies using our policy. We often hear or notice how much coffee they have to buy and how many machines they have to provide when they buy coffee. It is also heard some have stopped doing it. It's the policy we followed. ACUMEN 47 Anada or A coffee which reaches france.pmd 11/22/2013, 3:48 PM 47 48 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Regarding quality, things are really going towards a Regarding quality, things are really going towards a Regarding quality, things are really going towards a Regarding quality, things are really going towards a Regarding quality, things are really going towards a high level. Exportation is also being carried out. What high level. Exportation is also being carried out. What high level. Exportation is also being carried out. What high level. Exportation is also being carried out. What high level. Exportation is also being carried out. What are the important things regarding quality? are the important things regarding quality? are the important things regarding quality? are the important things regarding quality? are the important things regarding quality? When coffee is grown, it should be classified. The names of two kinds of coffee are Arabica and Robusta. The next to them is Cartimore. Arabica is popular all over the world. Especially foreigners like it very much. Its taste is also very good. Robusta comes second. It's very rich in caffeine. It is better to produce espresso by combining Robusta and Arabica. Arabica is harm- less whatever amount it is drunk. So we mainly grow Arabica. We also planted shade trees among the coffee trees systemati- cally. In plucking, we have to pluck only cherry red fruits. The quality begins there. If the plucked fruits don't meet the re- quired quality, it affects the quality of the product. To get the required quality, great care must be taken in plucking the fruits. Other green and yellow fruits must not be plucked together. And only when drying process is performed step by step sys- tematically, will we get coffee product of required quality. Great care must be taken when plucking is done. Storing of fruits also need to be systematic. We have to store raw coffee beans if we want to distribute them fresh to the customers. For the local market, we have to roast them depending on the order. But we export only raw coffee beans. We control the quality in this way. We have the knowl edge that producti on of Ananda We have the knowl edge that producti on of Ananda We have the knowl edge that producti on of Ananda We have the knowl edge that producti on of Ananda We have the knowl edge that producti on of Ananda coffee is a dry process. Could you please explain a coffee is a dry process. Could you please explain a coffee is a dry process. Could you please explain a coffee is a dry process. Could you please explain a coffee is a dry process. Could you please explain a little about that process? little about that process? little about that process? little about that process? little about that process? In a wet process, wet beans are crushed after harvest. After being crushed, they are fermented until all the mucus on the surface is cleared. Then they are washed again with water and dried. When the cover of the beans changes into silver colour, we can start using the coffee. We carry out stripping the raw coffee beans by the machine, stripping them one by one with hands and peeling them until the colour of jade appears. As you not only grow coffee but also buy it from the As you not only grow coffee but also buy it from the As you not only grow coffee but also buy it from the As you not only grow coffee but also buy it from the As you not only grow coffee but also buy it from the farmers, what are the di fferences i n terms of profi t farmers, what are the di fferences i n terms of profi t farmers, what are the di fferences i n terms of profi t farmers, what are the di fferences i n terms of profi t farmers, what are the di fferences i n terms of profi t and quality? and quality? and quality? and quality? and quality? In self-planting we can choose the variety and quality of coffee for the convenience of all. We have chances to give sys- tematic treatment. In plucking the fruits, we can tell our work- ers to do systematically in the type we like, using the formula we like. It's one of the points. Then in drying too, we can do step by step systematically by the process we are accomplished at. That's why we get the benefit of very good quality. If we buy coffee from the farmers, we give them methods. We share them with them. We buy coffee with care from the farmers who grow it by Daw Soe Amy Kyaw Managing Director Ananda Coffee Production and Distribution Co., Ltd. Daw Soe Amy Kyaw Managing Director Ananda Coffee Production and Distribution Co., Ltd. Interview Anada or A coffee which reaches france.pmd 11/22/2013, 3:49 PM 48 ACUMEN 49 the methods we give to them. And we do processing ourselves. What i s t he area of Myanmar' s cof f ee pl ant at i on? What i s t he area of Myanmar' s cof f ee pl ant at i on? What i s t he area of Myanmar' s cof f ee pl ant at i on? What i s t he area of Myanmar' s cof f ee pl ant at i on? What i s t he area of Myanmar' s cof f ee pl ant at i on? How many busi nesspersons are mai nl y t aki ng part How many busi nesspersons are mai nl y t aki ng part How many busi nesspersons are mai nl y t aki ng part How many busi nesspersons are mai nl y t aki ng part How many busi nesspersons are mai nl y t aki ng part i n cof f ee growi ng? And i n whi ch regi ons cof f ee i s i n cof f ee growi ng? And i n whi ch regi ons cof f ee i s i n cof f ee growi ng? And i n whi ch regi ons cof f ee i s i n cof f ee growi ng? And i n whi ch regi ons cof f ee i s i n cof f ee growi ng? And i n whi ch regi ons cof f ee i s mainly grown? Could you please tell me a little about mainly grown? Could you please tell me a little about mainly grown? Could you please tell me a little about mainly grown? Could you please tell me a little about mainly grown? Could you please tell me a little about i t? i t? i t? i t? i t? In Myanmar, coffee can be grown in Pyin Oo Lwin, Naungcho, Taunggyi and Thantaung. Robusta is grown on a large scale in Thantaung. But it is not very widely known. Ma- jor plantations are in Pyin Oo Lwin and Naungcho. The num- ber of farmers who grow more than ten acres is around 80. There are also farmers who grow coffee on their own farm on a manageable scale. Present total coffee plantation area is about 18,000 acres. The number of acres where fruits can actually be plucked is only about 5,400 acres. It's still a small number. What are the al ti tude and the temperature best for What are the al ti tude and the temperature best for What are the al ti tude and the temperature best for What are the al ti tude and the temperature best for What are the al ti tude and the temperature best for growing coffee? growing coffee? growing coffee? growing coffee? growing coffee? More than 3,000 feet above sea level is the best. It i s heard t hat t here are di sput es bet ween cof f ee It i s heard t hat t here are di sput es bet ween cof f ee It i s heard t hat t here are di sput es bet ween cof f ee It i s heard t hat t here are di sput es bet ween cof f ee It i s heard t hat t here are di sput es bet ween cof f ee growi ng busi nesspersons and l ocal peopl e on l and growi ng busi nesspersons and l ocal peopl e on l and growi ng busi nesspersons and l ocal peopl e on l and growi ng busi nesspersons and l ocal peopl e on l and growi ng busi nesspersons and l ocal peopl e on l and ownership. There are also notifications urging those ownership. There are also notifications urging those ownership. There are also notifications urging those ownership. There are also notifications urging those ownership. There are also notifications urging those who have reclaimed land for coffee plantation to grow who have reclaimed land for coffee plantation to grow who have reclaimed land for coffee plantation to grow who have reclaimed land for coffee plantation to grow who have reclaimed land for coffee plantation to grow coffee in time in 2014. Could you please discuss these coffee in time in 2014. Could you please discuss these coffee in time in 2014. Could you please discuss these coffee in time in 2014. Could you please discuss these coffee in time in 2014. Could you please discuss these problems a little? problems a little? problems a little? problems a little? problems a little? It started with a plan of the State to reclaim 100,000 acres of land to grow coffee. As I was distributing Myanmar coffee with Ananda brand at that time, departmental officials urged me to take some land and grow coffee. They also provided me with necessary assistance. They also held meetings in a large scale and invited people who wanted to grow coffee to come. I still remember a lot of people who wanted to grow coffee at- tended the meetings at the Ministry of Agriculture and Irriga- tion in Yangon. One of the questions the participants of the meeting raised was whether ownership of the land was guar- anteed if they went there. The businesspersons had concerns about making investments in distant places. The plots of land were those reclaimed from uncultivated virgin land. As the or- der to grow 100,000 acres of coffee had been issued and they also guaranteed the ownership, we started the business. When we actually went there, we had to reclaim the land ourselves by actually clearing the forests together with other fellow farm- ers. We had to build roads by pooling our own money. We had to work holding mattocks and investing huge amounts of Anada or A coffee which reaches france.pmd 11/22/2013, 3:49 PM 49 50 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 money in the desolate places. Then when coffee was grown, shade trees were put in. We had to take about three years to cultivate such shade trees. Only then we were able to grow coffee plants. As we also had to wait for the growth of coffee plants for three or four years, it took about seven years to reach the stage of coffee production. There were also some difficulties caused by the land. We had to plant shade trees again and again when they die. Coffee plants also died and we had to substitute them too. It took a very long time. There are farmers who discarded infertile land and made planting only on fertile land. About two years ago after passing a decade, some people who we didn't recognized came with one or two local villagers and claimed the land telling us to leave. When we first went there a decade ago, we went with doubts as to whether there was real security for us and whether the land was really fertile there. At that time, departmental personnel themselves came to the field and showed us the maps. We carried out the farming only after obtaining documents made by village authorities and native farmers from nearby villages that the land was really virgin and uncultivated. Land owner- ship problems of today sound like a popular style. I think they think they will get something whenever they claim something by giving some reason. Then are there protecti on and settl ements provi ded Then are there protecti on and settl ements provi ded Then are there protecti on and settl ements provi ded Then are there protecti on and settl ements provi ded Then are there protecti on and settl ements provi ded and made by the departments? and made by the departments? and made by the departments? and made by the departments? and made by the departments? There are neither protection nor settlements that they have provided or made. We have to pay attention to our self- protection and to settle disputes in accordance with the laws. We are poised to solve the problems ourselves as nobody takes responsibility. At last we are in a situation where all are grow- ing the plants in competition with others. If we are compared t o t he count ri es i n t he regi on If we are compared t o t he count ri es i n t he regi on If we are compared t o t he count ri es i n t he regi on If we are compared t o t he count ri es i n t he regi on If we are compared t o t he count ri es i n t he regi on particularly ASEAN countries, what is the position of particularly ASEAN countries, what is the position of particularly ASEAN countries, what is the position of particularly ASEAN countries, what is the position of particularly ASEAN countries, what is the position of cof f ee pl ant i ng of our count ry? In whi ch count ri es cof f ee pl ant i ng of our count ry? In whi ch count ri es cof f ee pl ant i ng of our count ry? In whi ch count ri es cof f ee pl ant i ng of our count ry? In whi ch count ri es cof f ee pl ant i ng of our count ry? In whi ch count ri es cof f ee i s grown most ? What i s our posi t i on i n t he cof f ee i s grown most ? What i s our posi t i on i n t he cof f ee i s grown most ? What i s our posi t i on i n t he cof f ee i s grown most ? What i s our posi t i on i n t he cof f ee i s grown most ? What i s our posi t i on i n t he competition with them? Could you please tell me about competition with them? Could you please tell me about competition with them? Could you please tell me about competition with them? Could you please tell me about competition with them? Could you please tell me about i t? i t? i t? i t? i t? Vietnam produces coffee most. The kind of coffee they pro- duce is Robusta. It is available at a cheap price but the taste is not very good. The quality of Indonesian coffee is good but it is Interview Anada or A coffee which reaches france.pmd 11/22/2013, 3:49 PM 50 ACUMEN 51 sometimes banned as it is suspected of carrying bacteria or viruses. The quality of Myanmar coffee is good but the volume of production is still very small. It is not widely known in the ASEAN region and in the world. So our Ananda Coffee is mak- ing efforts by giving more priority to quality than to quantity. We are also working hard to promote Myanmar coffee. Next, as you are producing chocolate, are you happy Next, as you are producing chocolate, are you happy Next, as you are producing chocolate, are you happy Next, as you are producing chocolate, are you happy Next, as you are producing chocolate, are you happy with your quality? Which technology do you use? And with your quality? Which technology do you use? And with your quality? Which technology do you use? And with your quality? Which technology do you use? And with your quality? Which technology do you use? And pl ant i ng condi t i ons? pl ant i ng condi t i ons? pl ant i ng condi t i ons? pl ant i ng condi t i ons? pl ant i ng condi t i ons? I'm very satisfied that I can do a business which no one else in Myanmar has done before. I'm also very happy as I am allowed to do so. The technology is from France and it's an ancient traditional method which doesn't contain any chemical. We make it with cocoa powder from cocoa beans which we grow ourselves. We will go on trying to get better and to im- prove the quality. How are you doing with the chocolate market? How are you doing with the chocolate market? How are you doing with the chocolate market? How are you doing with the chocolate market? How are you doing with the chocolate market? There are demands from two hotels. But we are still sell- ing it only at our store. We have arrangements to send it to the hotels. We are making efforts. There are also demands from places such as Inlay and Mandalay. We have to buy moulds for the blocks they have demanded. As for orders, they are in- creasing a great deal. The last one is the dream of Ananda. What is your The last one is the dream of Ananda. What is your The last one is the dream of Ananda. What is your The last one is the dream of Ananda. What is your The last one is the dream of Ananda. What is your idea for the future regarding both chocolate and cof- idea for the future regarding both chocolate and cof- idea for the future regarding both chocolate and cof- idea for the future regarding both chocolate and cof- idea for the future regarding both chocolate and cof- fee? What is the trend of coffee production industry fee? What is the trend of coffee production industry fee? What is the trend of coffee production industry fee? What is the trend of coffee production industry fee? What is the trend of coffee production industry in the whole country? Could you please comment on it? in the whole country? Could you please comment on it? in the whole country? Could you please comment on it? in the whole country? Could you please comment on it? in the whole country? Could you please comment on it? Our objective is to let the ASEAN and Asian countries know the message that coffees and chocolates which meet the inter- national standards are being produced and available in Myanmar. There are also plans to penetrate the international market. If all of them can be implemented, our Ananda will be able to mark a milestone in history. And as regards the trend of coffee planting in Myanmar, I think Myanmar coffee will be able to stand strong if farmers will systematically grow coffee, can establish a firm organization, grow it in accordance with specific standards and export it. I also think we'll have to work collectively taking time. A Anada or A coffee which reaches france.pmd 11/22/2013, 3:50 PM 51 52 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 B2B Talk 52 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Market Penetration.pmd 11/22/2013, 4:04 PM 52 ACUMEN 53 ACUMEN 53 Market Penetration.pmd 11/22/2013, 4:04 PM 53 Professor Dr. Aung Tun Thet : Greeting to all. Todays Professor Dr. Aung Tun Thet : Greeting to all. Todays Professor Dr. Aung Tun Thet : Greeting to all. Todays Professor Dr. Aung Tun Thet : Greeting to all. Todays Professor Dr. Aung Tun Thet : Greeting to all. Todays discussion will be about the advertisement business. I discussion will be about the advertisement business. I discussion will be about the advertisement business. I discussion will be about the advertisement business. I discussion will be about the advertisement business. I have invited four persons to this discussion this month. have invited four persons to this discussion this month. have invited four persons to this discussion this month. have invited four persons to this discussion this month. have invited four persons to this discussion this month. They are Dr. Khin Khin Kyawt, president and owner They are Dr. Khin Khin Kyawt, president and owner They are Dr. Khin Khin Kyawt, president and owner They are Dr. Khin Khin Kyawt, president and owner They are Dr. Khin Khin Kyawt, president and owner of Sai l Market i ng and Communi cat i ons, as wel l as of Sai l Market i ng and Communi cat i ons, as wel l as of Sai l Market i ng and Communi cat i ons, as wel l as of Sai l Market i ng and Communi cat i ons, as wel l as of Sai l Market i ng and Communi cat i ons, as wel l as presi dent of Myanmar Market i ng Servi ces Associ a- presi dent of Myanmar Market i ng Servi ces Associ a- presi dent of Myanmar Market i ng Servi ces Associ a- presi dent of Myanmar Market i ng Servi ces Associ a- presi dent of Myanmar Market i ng Servi ces Associ a- tion; Daw Aye Hnin Swe, managing director of Mango tion; Daw Aye Hnin Swe, managing director of Mango tion; Daw Aye Hnin Swe, managing director of Mango tion; Daw Aye Hnin Swe, managing director of Mango tion; Daw Aye Hnin Swe, managing director of Mango Media Limited; U Aung Thura, chief strategist of Ig- Media Limited; U Aung Thura, chief strategist of Ig- Media Limited; U Aung Thura, chief strategist of Ig- Media Limited; U Aung Thura, chief strategist of Ig- Media Limited; U Aung Thura, chief strategist of Ig- ni t e Market i ng Communi cat i on; and Daw Nan Nwe ni t e Market i ng Communi cat i on; and Daw Nan Nwe ni t e Market i ng Communi cat i on; and Daw Nan Nwe ni t e Market i ng Communi cat i on; and Daw Nan Nwe ni t e Market i ng Communi cat i on; and Daw Nan Nwe Hl ai ng, managi ng di recter of Future Com. Adverti s- Hl ai ng, managi ng di recter of Future Com. Adverti s- Hl ai ng, managi ng di recter of Future Com. Adverti s- Hl ai ng, managi ng di recter of Future Com. Adverti s- Hl ai ng, managi ng di recter of Future Com. Adverti s- i ng. Fi rst I woul d l i ke t o di scuss t hei r busi ness i ng. Fi rst I woul d l i ke t o di scuss t hei r busi ness i ng. Fi rst I woul d l i ke t o di scuss t hei r busi ness i ng. Fi rst I woul d l i ke t o di scuss t hei r busi ness i ng. Fi rst I woul d l i ke t o di scuss t hei r busi ness begi ni ngs and current si t uat i ons, st art i ng wi t h Dr. begi ni ngs and current si t uat i ons, st art i ng wi t h Dr. begi ni ngs and current si t uat i ons, st art i ng wi t h Dr. begi ni ngs and current si t uat i ons, st art i ng wi t h Dr. begi ni ngs and current si t uat i ons, st art i ng wi t h Dr. Khin Khin Kyawt. Khin Khin Kyawt. Khin Khin Kyawt. Khin Khin Kyawt. Khin Khin Kyawt. Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : I started the marketing business unexpectedtly since 1984, during the socialist era. It began as Pharmaceutical Advertising and Marketing. As I wasnt able to go into service after graduating as a physician. I went into the marketing business as a western pharmaceutical agent and supplied foreign medicines to the market. Besides that I opened the first colour photo shop in Myanmar as a family business. We printed the calendar each year as a job of the USA Color Lab (San Aung. RIT) and on finding that the color separation process was not of the quality we wanted we took the business to Singapore. In 1991, as soon as an open market policy was formalized we founded the San Aung Imaging Company Lim- ited. We imported western medicines into the market and did advertisement. We imported and sold Kodak films and did advertisements. We ereted the first billboards. Liking what we did for Kodak, Nestle contacted, so we had to do marketing for Milo and Nescafe. Liking what we did for Nestle we were offered to do total marketing for Lux Beauty Soap and Unilever Products. At that time no one could systematically do interna- tional marketing. From there we formed the first advertising agency. McCann-Erickson, a top international company came searching for us, the single company in Myanmar. We formed with them the Sail McCann-Erickson company as a joint ven- ture. We were doing business as so when we were put under trade sanction and Unilever left. At that time we had to reduce work and go low profile. Hit by the sanction the customers we had raised left the country. We were able to help little local products. We were also able to help NGOs like PSI with our expertise. At that time we got free from sanction, and as it was my responsibility we started contacting more higher foreign companies and American companies and continued business. Professor Dr. Aung Tun Thet : I thank you very much Professor Dr. Aung Tun Thet : I thank you very much Professor Dr. Aung Tun Thet : I thank you very much Professor Dr. Aung Tun Thet : I thank you very much Professor Dr. Aung Tun Thet : I thank you very much for answeri ng so compl etel y, Dr. Khi n Khi n Kyawt. for answeri ng so compl etel y, Dr. Khi n Khi n Kyawt. for answeri ng so compl etel y, Dr. Khi n Khi n Kyawt. for answeri ng so compl etel y, Dr. Khi n Khi n Kyawt. for answeri ng so compl etel y, Dr. Khi n Khi n Kyawt. Now, could Daw Aye Hnin Swe tell me a little about Now, could Daw Aye Hnin Swe tell me a little about Now, could Daw Aye Hnin Swe tell me a little about Now, could Daw Aye Hnin Swe tell me a little about Now, could Daw Aye Hnin Swe tell me a little about the Mango Media Limited. the Mango Media Limited. the Mango Media Limited. the Mango Media Limited. the Mango Media Limited. 54 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : I started the media business in 1994. As soon as I started business. I went into the advertisement business. It also became a work I liked much. I went into Unilever for a year. But I just wanted to go back to the advertis- ing business. I wanted to do that work again. I became to real- ize more and more that it was a job I liked. When 2002 came the market dropped a little. When I saw this drop I thought it would be a good time to follow up education. Luckily I got a scholarship from Canada and went abroad. After going abroad and then finishing my studies at Bates in 2004. I consulted with my former teacher. The time was just right. He urged me to return to Myanmar and start an advertising business. From 2002, we couldnt imagine it would become like this, this day, this time. But my friends, colleagues, those that worked with me in foreign companies, also, were calling me back. They too wanted to be together. And I also didnt want to live on in foreign country so I returned to Myanmar. Besides the adver- tisement business I did another business too. I had to establish it with difficulties. Starting from 2004 it has succeeded quite B2B Talk Market Penetration.pmd 11/22/2013, 4:04 PM 54 ACUMEN 55 well in 2013, now. There is a need to put in more effort. Under these nine years time there was a lot of difficulties as well as happinesses. Professor Dr. Aung Tun Thet : Thank you very much. Professor Dr. Aung Tun Thet : Thank you very much. Professor Dr. Aung Tun Thet : Thank you very much. Professor Dr. Aung Tun Thet : Thank you very much. Professor Dr. Aung Tun Thet : Thank you very much. This is also a sign of progress of our country. Study- This is also a sign of progress of our country. Study- This is also a sign of progress of our country. Study- This is also a sign of progress of our country. Study- This is also a sign of progress of our country. Study- i ng abroad, and ret urni ng f rom worki ng abroad t o i ng abroad, and ret urni ng f rom worki ng abroad t o i ng abroad, and ret urni ng f rom worki ng abroad t o i ng abroad, and ret urni ng f rom worki ng abroad t o i ng abroad, and ret urni ng f rom worki ng abroad t o l end a hel pi ng hand i n any way one can i n t hi s l end a hel pi ng hand i n any way one can i n t hi s l end a hel pi ng hand i n any way one can i n t hi s l end a hel pi ng hand i n any way one can i n t hi s l end a hel pi ng hand i n any way one can i n t hi s ref orm process, we t hank you very much. Now, U ref orm process, we t hank you very much. Now, U ref orm process, we t hank you very much. Now, U ref orm process, we t hank you very much. Now, U ref orm process, we t hank you very much. Now, U Aung Thura, as you yourself is a chief strategist, could Aung Thura, as you yourself is a chief strategist, could Aung Thura, as you yourself is a chief strategist, could Aung Thura, as you yourself is a chief strategist, could Aung Thura, as you yourself is a chief strategist, could you tell us a little how you started the business. you tell us a little how you started the business. you tell us a little how you started the business. you tell us a little how you started the business. you tell us a little how you started the business. U Aung Thura : U Aung Thura : U Aung Thura : U Aung Thura : U Aung Thura : When I went into the advertisement busi- ness on my return from America, I work for three years at Dr. Khin Khin Kyawts Sail Marketing. In 1999 when all left the country the McCann-Erickcon business also went. I was lucky. I met a good patron and immediately got a post in Lao. So I left for Lao. After two years in Lao. I spent five years in Vietnam. I got a lot of experiences. There too it was with the McCann- Erickson company. After staying in Vietnam for five years I started to feel the stress. In the long-term the Vietnamese were not like the Myanmars at work. They tried harder and are more aggressive. Those became pressure for me. When look- ing for another chance I got work at McCann-Ericks on Thai- land in Thailand. There I worked as a strategic planning direc- tor. The job was mainly communication planning. Those were message planning, strategy planning. There I worked for five years. After staying there for some time I started to feel the stress. This job, I decided not to do this advertising business anymore. I said enough and changed jobs. I got the marketing director job at the PSI. Then I also wanted to return to Myanmar. It was 2009 and we didnt think there would be any reform. When doing the good business of PSI, such as Aphaw and malaria and family planning I got very much interested about the communication matter. After working there for two years, the market situation changed. While working at McCann Thai- land, I consulted with clients from Myanmar. On returning to Myanmar I was able to contact with these clients again and as there was a little limitations concerning the PSI culture in 2011 I founded the Ignite Marketing Communications. In the agen- cies I was quite a late comer. Now the plan was mainly finding clients to grow the business later we had to grow the people. Those two jobs were done. Professor Dr. Aung Tun Thet : You mentioned that you Professor Dr. Aung Tun Thet : You mentioned that you Professor Dr. Aung Tun Thet : You mentioned that you Professor Dr. Aung Tun Thet : You mentioned that you Professor Dr. Aung Tun Thet : You mentioned that you returned and the other thi ng you sai d was that the returned and the other thi ng you sai d was that the returned and the other thi ng you sai d was that the returned and the other thi ng you sai d was that the returned and the other thi ng you sai d was that the economi c structure changed. Before no one had the economi c structure changed. Before no one had the economi c structure changed. Before no one had the economi c structure changed. Before no one had the economi c structure changed. Before no one had the sense to advertise. None realized what advertisement sense to advertise. None realized what advertisement sense to advertise. None realized what advertisement sense to advertise. None realized what advertisement sense to advertise. None realized what advertisement meant . What t he publ i c needed t o know was what meant . What t he publ i c needed t o know was what meant . What t he publ i c needed t o know was what meant . What t he publ i c needed t o know was what meant . What t he publ i c needed t o know was what marketing was. The people understood only commer- marketing was. The people understood only commer- marketing was. The people understood only commer- marketing was. The people understood only commer- marketing was. The people understood only commer- cial marketing. That is why government organizations cial marketing. That is why government organizations cial marketing. That is why government organizations cial marketing. That is why government organizations cial marketing. That is why government organizations need thi s soci al marketi ng very much. Though they need thi s soci al marketi ng very much. Though they need thi s soci al marketi ng very much. Though they need thi s soci al marketi ng very much. Though they need thi s soci al marketi ng very much. Though they t hought t hat advert i si ng di d not concern t hem, PSI t hought t hat advert i si ng di d not concern t hem, PSI t hought t hat advert i si ng di d not concern t hem, PSI t hought t hat advert i si ng di d not concern t hem, PSI t hought t hat advert i si ng di d not concern t hem, PSI was doing health care, business in AIDS matters and was doing health care, business in AIDS matters and was doing health care, business in AIDS matters and was doing health care, business in AIDS matters and was doing health care, business in AIDS matters and mal ari a. No soci al marketi ng can be seen i n educa- mal ari a. No soci al marketi ng can be seen i n educa- mal ari a. No soci al marketi ng can be seen i n educa- mal ari a. No soci al marketi ng can be seen i n educa- mal ari a. No soci al marketi ng can be seen i n educa- tional matters. And another thing is that, listening to tional matters. And another thing is that, listening to tional matters. And another thing is that, listening to tional matters. And another thing is that, listening to tional matters. And another thing is that, listening to the dialouge of the four here, it is clear the dialouge of the four here, it is clear the dialouge of the four here, it is clear the dialouge of the four here, it is clear the dialouge of the four here, it is clear that that that that that marketing marketing marketing marketing marketing and and and and and communication in the communication in the communication in the communication in the communication in the advertisement sector is im- advertisement sector is im- advertisement sector is im- advertisement sector is im- advertisement sector is im- portant. Without communication, marketing is not pos- portant. Without communication, marketing is not pos- portant. Without communication, marketing is not pos- portant. Without communication, marketing is not pos- portant. Without communication, marketing is not pos- sible. Advertising would also become impossible. Now sible. Advertising would also become impossible. Now sible. Advertising would also become impossible. Now sible. Advertising would also become impossible. Now sible. Advertising would also become impossible. Now could you tell me how Daw Nan Nwe could you tell me how Daw Nan Nwe could you tell me how Daw Nan Nwe could you tell me how Daw Nan Nwe could you tell me how Daw Nan Nwe Hlaing Hlaing Hlaing Hlaing Hlaings Future s Future s Future s Future s Future Com. Advertising company got its beginning? Com. Advertising company got its beginning? Com. Advertising company got its beginning? Com. Advertising company got its beginning? Com. Advertising company got its beginning? Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : I started my main business in 2003. Because I started working at Bates Advertising in 1995. From that time till 2003 I worked there. Daw Aye Hnin Swe is also my teacher and guide in this subject. I worked together with them. As Daw Aye Hnin Swe mentioned just now, in 2002 she went for further studies. At the time she was gone, I worked in the media department from 1995 to 2003. About 2003 in June, Market Penetration.pmd 11/22/2013, 4:04 PM 55 56 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 sanction was laid down and Bates left the country. At that time I had no one to depend on the media department. Only two friends were left with me. As we were all that was left Bates told us, to clear up the whole job by August the latest. At that time, coincidently I was in full pregnancy. If we didnt clear up the business by that time it would be difficult for them to leave. And another thing was the attitude of our clients because the plan set had been for the whole year till December. And so there was only three, four months left. In Myanmar we had these dealings with our colleagues, suppliers and journal houses. There were also stations. Though they left, the clients, and job remained still. At the media department I had quite a responsi- bility. Four years before Bates left, I and Daw Aye Hnin Swe and Daw Kay Myat Khaing and U Aung Kyaw Oo, the four of us had founded the Zenith Media. In 2002 when Daw Aye Hnin Swe went for studies in Canada, the three of us were left and there the trouble started. So when Bates left, I looked around and found the journalists and stations trusting us. And so our chief WPP summoned us and asked if we would continue working for us. They said they would give control from that side. So that set me thinking. If they can provide control from that side what could we do. I said I would recover the work for them and tried to recover all the jobs. So I met the clients and found that they were quite sad. They didnt know which agency to run to Competing brands held the other agencies. So what they re- quested was that though Bates had curtailed their business a lot of Bates, ASEAN brand clients were left and they wanted us to continue the business. When working at Bates as I was media I wasnt much in touch with the clients. But at Zenith Media I had to do media works with the clients and in that four years period became very close with them. Here I had to neglect the clients for about four months. At that time my pregnancy sud- denly fell out. Today is the tenth anniversary of the childs death. Coincidentally I had a chance to talk about it in the interview today. At that time I certainly worked hard. I had to recover for this side too without expecting any kind of fees I worked for them for four whole months. I thought about the matter only up until that time. But as my clients wanted me to continue I went joint with Daw Kay Myat Khaing. The 2 October of 2013, the previous month in the tenth anniversary of our Future Com. Advertising. Prof essor Dr. Aung Tun Thet : I n t hi s B2B panel Prof essor Dr. Aung Tun Thet : I n t hi s B2B panel Prof essor Dr. Aung Tun Thet : I n t hi s B2B panel Prof essor Dr. Aung Tun Thet : I n t hi s B2B panel Prof essor Dr. Aung Tun Thet : I n t hi s B2B panel discussions we discuss the pros and cons of business discussions we discuss the pros and cons of business discussions we discuss the pros and cons of business discussions we discuss the pros and cons of business discussions we discuss the pros and cons of business wi t h ent repreneurs as much as we coul d, so t hat wi t h ent repreneurs as much as we coul d, so t hat wi t h ent repreneurs as much as we coul d, so t hat wi t h ent repreneurs as much as we coul d, so t hat wi t h ent repreneurs as much as we coul d, so t hat ordinary people would understand. It has only three, ordinary people would understand. It has only three, ordinary people would understand. It has only three, ordinary people would understand. It has only three, ordinary people would understand. It has only three, four years since Myanmar has gone on to real eco- four years since Myanmar has gone on to real eco- four years since Myanmar has gone on to real eco- four years since Myanmar has gone on to real eco- four years since Myanmar has gone on to real eco- nomi cs. Bef ore i t was possi bl e not t o advert i se i n nomi cs. Bef ore i t was possi bl e not t o advert i se i n nomi cs. Bef ore i t was possi bl e not t o advert i se i n nomi cs. Bef ore i t was possi bl e not t o advert i se i n nomi cs. Bef ore i t was possi bl e not t o advert i se i n business, advertising was a waste. Another thing that business, advertising was a waste. Another thing that business, advertising was a waste. Another thing that business, advertising was a waste. Another thing that business, advertising was a waste. Another thing that was needed was the international clients. So, due to was needed was the international clients. So, due to was needed was the international clients. So, due to was needed was the international clients. So, due to was needed was the international clients. So, due to t hese current ref orms, now we have more power. t hese current ref orms, now we have more power. t hese current ref orms, now we have more power. t hese current ref orms, now we have more power. t hese current ref orms, now we have more power. We want t he audi ence t o know t here are a l ot of We want t he audi ence t o know t here are a l ot of We want t he audi ence t o know t here are a l ot of We want t he audi ence t o know t here are a l ot of We want t he audi ence t o know t here are a l ot of advertising channels in the media. Now there is online advertising channels in the media. Now there is online advertising channels in the media. Now there is online advertising channels in the media. Now there is online advertising channels in the media. Now there is online media, There are billboards. In the newspapers too, media, There are billboards. In the newspapers too, media, There are billboards. In the newspapers too, media, There are billboards. In the newspapers too, media, There are billboards. In the newspapers too, there i s suppl ement pages wi th ful l page ads. They there i s suppl ement pages wi th ful l page ads. They there i s suppl ement pages wi th ful l page ads. They there i s suppl ement pages wi th ful l page ads. They there i s suppl ement pages wi th ful l page ads. They are al so ful l i n the j ournal s. The same i n shoppi ng are al so ful l i n the j ournal s. The same i n shoppi ng are al so ful l i n the j ournal s. The same i n shoppi ng are al so ful l i n the j ournal s. The same i n shoppi ng are al so ful l i n the j ournal s. The same i n shoppi ng gui des. gui des. gui des. gui des. gui des. Definitely a lot. As there are a lot of things that Definitely a lot. As there are a lot of things that Definitely a lot. As there are a lot of things that Definitely a lot. As there are a lot of things that Definitely a lot. As there are a lot of things that can be advert i sed, we woul d l i ke t o di scuss here can be advert i sed, we woul d l i ke t o di scuss here can be advert i sed, we woul d l i ke t o di scuss here can be advert i sed, we woul d l i ke t o di scuss here can be advert i sed, we woul d l i ke t o di scuss here what ki nd of servi ces t he advert i si ng company can what ki nd of servi ces t he advert i si ng company can what ki nd of servi ces t he advert i si ng company can what ki nd of servi ces t he advert i si ng company can what ki nd of servi ces t he advert i si ng company can provide, how it makes the decision and how to ad- provide, how it makes the decision and how to ad- provide, how it makes the decision and how to ad- provide, how it makes the decision and how to ad- provide, how it makes the decision and how to ad- vert i se. vert i se. vert i se. vert i se. vert i se. Dr. Khi n Khi n Dr. Khi n Khi n Dr. Khi n Khi n Dr. Khi n Khi n Dr. Khi n Khi n Kyawt : Kyawt : Kyawt : Kyawt : Kyawt : So you are asking about the media sector. There are many kinds of advertis- ing agencies. That i ndust ry has changed. Before the advertising agencies created the ads and in- serted in the me- di a. They al so went down into the field and got in touch with the public. There is total communica- tion as well as above the line, below the line ads. Above the line means using t he medi a by public communication strategy. Below the line means doing direct promotion marketing. As for us up to now we are total, being various departments I will answer your question starting with the media. We mainly use the T.Y. T.V is the majority. It has more penetrating power. We use the print media and also bill boards. Besides that we use the radio media. Then theres internet and online currently in vogue. In future, the media will change. Currently censorship has been lessened in the Myanmar media scene. It has become very lively and all forms can be seen. As a media company we are always look- ing at it. B2B Talk Market Penetration.pmd 11/22/2013, 4:04 PM 56 ACUMEN 57 Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Incidentally we provide service as you said. We advise our clients how we must get their products successfully into the market, how to penetrate. We give them ideas. We provide the best we can and the final decision is theirs. Thats why our effort and our ability is to persuade them that what we have done for them is the best. We have to work to get that result. When we show it to them they may modify it. We agree to it when they say they want to go along just in this trend, we have to do it. As for us we are not the final decision maker. But why is it necessary to go along with this strategy. Its like building a bridge between the customers and clients. We tell what kind of materials we will use, what kind of bridge we will build. We advice what kind of media should be used dependi ng on each merchan- dise. As an ad- vertising agency its important to present t he right media to choose. Onl y t hen woul d their money be not wast ed. Now in the mar- ket T. V i s mai nl y used. Sometimes we tell our clients, will their goods really get into the market by using just TV. Thi nk care- fully. Is it nec- essary? And do t he cus- tomers really view it? I al- ways advise them to think carefully. Because we may get a lot of money for giving them expensive services, that money is not honest money. Not good money. If success is obtained with a little expense that is an advertisement business success. I re- peat, we dont decide. We present the data ready-made so the clients can make the decision. Prof essor Dr. Aung Tun Thet : That s an i mport ant Prof essor Dr. Aung Tun Thet : That s an i mport ant Prof essor Dr. Aung Tun Thet : That s an i mport ant Prof essor Dr. Aung Tun Thet : That s an i mport ant Prof essor Dr. Aung Tun Thet : That s an i mport ant fact. Because it is a service industry the client makes fact. Because it is a service industry the client makes fact. Because it is a service industry the client makes fact. Because it is a service industry the client makes fact. Because it is a service industry the client makes the final decision while the service person acts as a the final decision while the service person acts as a the final decision while the service person acts as a the final decision while the service person acts as a the final decision while the service person acts as a consul t ant . What t he i mpact wi l l be t hi s way. How consul t ant . What t he i mpact wi l l be t hi s way. How consul t ant . What t he i mpact wi l l be t hi s way. How consul t ant . What t he i mpact wi l l be t hi s way. How consul t ant . What t he i mpact wi l l be t hi s way. How Advertising in Print media is one of the ways to promote the brand sales could rise. The consultant gives these advices. sales could rise. The consultant gives these advices. sales could rise. The consultant gives these advices. sales could rise. The consultant gives these advices. sales could rise. The consultant gives these advices. How much it will cost on TV? How much it will cost How much it will cost on TV? How much it will cost How much it will cost on TV? How much it will cost How much it will cost on TV? How much it will cost How much it will cost on TV? How much it will cost i n t he newspapers? Those advi ces are i mport ant . i n t he newspapers? Those advi ces are i mport ant . i n t he newspapers? Those advi ces are i mport ant . i n t he newspapers? Those advi ces are i mport ant . i n t he newspapers? Those advi ces are i mport ant . Because advertising agencies have to choose strategy Because advertising agencies have to choose strategy Because advertising agencies have to choose strategy Because advertising agencies have to choose strategy Because advertising agencies have to choose strategy for the clients. Now, U Aung Thura, how is your per- for the clients. Now, U Aung Thura, how is your per- for the clients. Now, U Aung Thura, how is your per- for the clients. Now, U Aung Thura, how is your per- for the clients. Now, U Aung Thura, how is your per- formance in the media channel sector. formance in the media channel sector. formance in the media channel sector. formance in the media channel sector. formance in the media channel sector. U Aung Thura : U Aung Thura : U Aung Thura : U Aung Thura : U Aung Thura : I think relevancy is important. Does our target audience watch, listen, read or use this media is the first matter to be studied that is most important in media planning. Because only after studying if these people watch this channel, listen to this radio, read this newspaper could the communica- tion strategy be drawn. The research information needs to be correct. If it is correct the recommendation of the agency will be right. If the information was not impeccable, have gaps or not received on time, it is quite difficult. In that step, we have to go to the client and present the media plan. Telling them we will insert this advertisement, in this program broadcasted at this time. And they will ask why and we need to explain it. This is the foundation key. Client must also be logical. Thats right. If they can deliber- ate the matter they too need to study this media habit. Some- times the clients present this dilemna. They come with, my brother-in- law likes this program, insert it in it. This is my friend and he reads this journal, insert it in it. Though we listen to those suggestions, sometimes we dont. Because we cant decide the matter just because his brother-in-law likes that program. The key factor is to give them good advices. It depends on the agencys recommendation, how much values creativity. Some clients lay down such directives such as put the logo here, use this movie star, let her hold the merchandise in her hand. If it is as so they dont need an agency. They can do it themselves. But if they engage an agency due to various reasons. To get the true value of the agency they need to engage an agency that can really do it. Theres one thing. The agencys role, the clients role. Client role means to know the marketing director and brand manager clearly. If they lack transparency the market- ing director and brand will get fused. Then the agency wont get true value. You asked about decision making. But thats relevant. Because the brand manager likes to give recommen- dations very much, likes use this actor, use this actress instead. In design too they want to give feedback. They listen to the presentation at presentation time. And some do it, as some say, with regards. If they think its wrong, as they are the ones with experience, more or less they debate the matter when you meet a lawyer, you have to listen to his recommendation. If you suggest to the lawyer to do this or that, he would be obliged, but if it will be good or bad for you is another matter. Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Mainly it concerns the planning matter. Ten years ago there were not so much TV channels. Advertising in Print media is one of the ways to promote the brand Market Penetration.pmd 11/22/2013, 4:04 PM 57 58 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 There was MRTV and Myawady, so you could close your eyes and insert an ad find it a hit. The market demand is good. In this recent time, since about a year, it has been quite a struggle. There are now sleepless nights. Because before drawing the main plan clients ask for a precise reporting. Mainly we have to do researches. The main weak point of Myanmar is in re- search. We have research data of only about five cities. We dont have data of remote areas. That is why when we draw plans sometimes we have to do with our gut feelings. This is not fair. We shouldnt do it with gut feelings. But the situation is that up till now half is still with gut feelings. Because we cant do full research we dont have complete data in our hand. So we have much responsibility to deal with this. We cant do the planning factor lightly as before. Now when drawing up a plan they ask us to estimate. How much is the GRP? Whats the weight? How deep will we reach? What will be cost per rating? So now we cant draw a plan, write a gist, or such. Now when they launch it, if they set down a budget for us even we have to do the complete pre- planning. Compute carefully. While we compute, they sit and watch. When they watch, when we advice, they question us and ask for a second option. Then to draw a third option. They are more skills than us. Their techniques are exceptionally good. Our current research is at the manual stage. Theres no elec- tronics. Are there viewers, are there readers, we have to calcu- late on that. Sometimes we arent able to present it. In truth, doing it is the only way we know how to do it. Now when the time comes to present it, honestly we tell our clients, for ten whole years we had our eyes closed, without exposure. Thats why could you share what you have, we honestly request. Now they have templates of international agencies. So they do pro- vide us. They tell us to fill in the template. So we have to fill in the appropriate data, Saya. There are a lot of matters we are completely unfamiliar to. But we try to provide the best. Now in the planning sector it is not as light as before. Its been a year now, things havent been light. Things have to be done strategi- cally. As the planning sector has been fully discussed just now, I would like to state that research and strategy is much needed now. Professor Dr. Aung Tun Thet : What I want to tal k Professor Dr. Aung Tun Thet : What I want to tal k Professor Dr. Aung Tun Thet : What I want to tal k Professor Dr. Aung Tun Thet : What I want to tal k Professor Dr. Aung Tun Thet : What I want to tal k about now i s t he ads I had seen i n Yangon and about now i s t he ads I had seen i n Yangon and about now i s t he ads I had seen i n Yangon and about now i s t he ads I had seen i n Yangon and about now i s t he ads I had seen i n Yangon and Mandalay. Ads in such big cities. Their target seems Mandalay. Ads in such big cities. Their target seems Mandalay. Ads in such big cities. Their target seems Mandalay. Ads in such big cities. Their target seems Mandalay. Ads in such big cities. Their target seems very limited. What I want to know is it s nationwide very limited. What I want to know is it s nationwide very limited. What I want to know is it s nationwide very limited. What I want to know is it s nationwide very limited. What I want to know is it s nationwide aspect. In the future we will have to be thinking of aspect. In the future we will have to be thinking of aspect. In the future we will have to be thinking of aspect. In the future we will have to be thinking of aspect. In the future we will have to be thinking of t hi s f act or. There i s a t el ecommuni cat i on operat or t hi s f act or. There i s a t el ecommuni cat i on operat or t hi s f act or. There i s a t el ecommuni cat i on operat or t hi s f act or. There i s a t el ecommuni cat i on operat or t hi s f act or. There i s a t el ecommuni cat i on operat or here now. When we get 3G, 4G, it won t be like this. here now. When we get 3G, 4G, it won t be like this. here now. When we get 3G, 4G, it won t be like this. here now. When we get 3G, 4G, it won t be like this. here now. When we get 3G, 4G, it won t be like this. It won t be necessary to go and di scuss the matter It won t be necessary to go and di scuss the matter It won t be necessary to go and di scuss the matter It won t be necessary to go and di scuss the matter It won t be necessary to go and di scuss the matter with MRTV. All the strategies are not for tomorrow. with MRTV. All the strategies are not for tomorrow. with MRTV. All the strategies are not for tomorrow. with MRTV. All the strategies are not for tomorrow. with MRTV. All the strategies are not for tomorrow. How woul d i t be i n advert i si ng, t hree years, f i ve How woul d i t be i n advert i si ng, t hree years, f i ve How woul d i t be i n advert i si ng, t hree years, f i ve How woul d i t be i n advert i si ng, t hree years, f i ve How woul d i t be i n advert i si ng, t hree years, f i ve years, ten years from now. In the second sector, what years, ten years from now. In the second sector, what years, ten years from now. In the second sector, what years, ten years from now. In the second sector, what years, ten years from now. In the second sector, what I want to say is, now in the international advertising I want to say is, now in the international advertising I want to say is, now in the international advertising I want to say is, now in the international advertising I want to say is, now in the international advertising agency factor, previ ous ones are comi ng back. Now agency factor, previ ous ones are comi ng back. Now agency factor, previ ous ones are comi ng back. Now agency factor, previ ous ones are comi ng back. Now agency factor, previ ous ones are comi ng back. Now how can we j oi n wi th them. Wi l l we compete wi th how can we j oi n wi th them. Wi l l we compete wi th how can we j oi n wi th them. Wi l l we compete wi th how can we j oi n wi th them. Wi l l we compete wi th how can we j oi n wi th them. Wi l l we compete wi th t hem. Go TV wi t h t hem. That s a di f f erent opt i on. t hem. Go TV wi t h t hem. That s a di f f erent opt i on. t hem. Go TV wi t h t hem. That s a di f f erent opt i on. t hem. Go TV wi t h t hem. That s a di f f erent opt i on. t hem. Go TV wi t h t hem. That s a di f f erent opt i on. Would you mind discussing a little about that? Would you mind discussing a little about that? Would you mind discussing a little about that? Would you mind discussing a little about that? Would you mind discussing a little about that? Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : For us time is changing. There are also challenges. As Myanmar, progresses, transforms, for all of us entrepreneurs everything is an opportunity. For the public, for the business person I am happy always to be in motion. I dont like it being dead. Rise or fall, as long as it is in motion, it is an opportunity. We are constantly in motion in this opportu- nity. Its our department too every day we appoint more staff. We open more departments. We give the youths training. Then investing in professional from foreign, we appoint them. In recruiting the staff locally, they have the experience. The Myanmar is slow, heavy, the kids are simple. To initiate them, to lead them, we appoint foreigners. Communication business, media businesses will become multifarious. We invest for that too. For that too we go digital. And in the research factor too, we are weak there so we personally have to buy all satellites and record every thing. Personally we also try to get media reports. Because there are only two research New way to promote the brand B2B Talk Market Penetration.pmd 11/22/2013, 4:05 PM 58 ACUMEN 59 agencies and in that sector we have to depend on MMRD. Of course, we also invest by ourselves. We take records and moni- tor it. Going like that, it was really exhausting for us at this time. The local clients too cant be sleeping. Now, goods are being imported. There too, millions of dollars are being used. Here we cant do it haphazardly. They too have responsibility. We must do it scientifically. And so we cant perform that with Myanmars. We have to give priority to foreign professionals and their skills. Paying millions of dollars in honorarium to foreign professionals. It wont do if these foreign experts are not invited. After calling them, as local entrepreneurs we pro- vide administration and raise the kids. Invent how businesses Invest. Thats the only job we have to do. So to go joint venture or not with foreign companies, as we respect their skill and work, we cant keep on skining in a bamboo hollow. Of course, there are difficulties will they bring along expertise or finance? They would bring along one thing or another. As for us we have done the investing. When they come it must be brought along from their side. It may not be immediately brought along. Then one has to be very careful. There is also that kind of situations, Saya. Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : As for me it would be better if we could group as the advertising agency. There are difficulties we face. Difficulties we have with the media vendor, media. We could brainstorm these matters and overcome them as best as we can. Besides that we could establish the advertising indus- try nicely. It must be said that we do advertising. From the start we did so. We dont have any advertising school here. In the communication sector too there are no schools. We should all group together and found this industry. Putting aside our per- sonal benefit how are we going to form this advertising world. Thats a point, Saya. It would be good if there was such a factor. The media too. Currently, it can be said that the media land- scape has changed. But I want to say, its just slightly. The TVs have become from two, to four, five stations. But all are the same Saya. This policy is used. This form is done. Not a change, Saya. The way we worked 15 years ago hasnt changed at all. Much progress and transformation must be done from their side. Besides that previously they didnt update once even in a years time. Now update has to be done frequently. That change is something to be glad about. But the policy must change. The media policy. Our advertising is in the media. Some media have come to admit that their revenue is important. This matter, our government is also drawing up some laws concerning this matter. When discussing about revenues they get from adver- tising businesses we dont hear a peep from their meeting once. When sitting with relevant personal at meetings I ask them about the matter. How it could be so. I understand it, Saya. In this period when our country is having to do a lot for transfor- mation, in the media too advertising is right at the bottom. It may be in a time still unimportant, Saya. But it needs to be thought about. Some media- such as the Myanmar broadcasting and Myawady - they call it PBS. Say they will survive as such. Income from advertisement is not an important factor for them. But is commercial, advertisement is an important factor. Cur- rently that can be monopolized. How long would this last. Are we ready for the time we could not monopolize it. Advertising business is done linked up to all things. As for us, we have advertisers. On the other side there is the media outlet. Only if all together develop will this whole industry progress. Now, when we do media planning it has advanced a little than choos- ing a program by hunch. Only when the two operators that have been granted the online media licence complete the proceedure and formulate their plan would it happen. Currently, using the internet is just finding ourselves get- ting older, sitting and watching this little circle rotate, Saya. When all that changes will digital media advertising will be a reality. Our countrys situation is that mainly, 70 percent of the population is in the rural areas. And so mainly we need to communicate with them. With basic commodities such as soaps. They arent gone online yet. We would have to wait at least about a year. TV is the media that gets most money. It isnt in the condition where other media can overwhelm it, Saya. Professor Dr. Aung Tun Thet : There is a message I Professor Dr. Aung Tun Thet : There is a message I Professor Dr. Aung Tun Thet : There is a message I Professor Dr. Aung Tun Thet : There is a message I Professor Dr. Aung Tun Thet : There is a message I want to give in our B2B chat room. Would we each want to give in our B2B chat room. Would we each want to give in our B2B chat room. Would we each want to give in our B2B chat room. Would we each want to give in our B2B chat room. Would we each cut a piece of this present pie or make the pie bigger. cut a piece of this present pie or make the pie bigger. cut a piece of this present pie or make the pie bigger. cut a piece of this present pie or make the pie bigger. cut a piece of this present pie or make the pie bigger. We need t o enl arge t hi s advert i si ng market . Some- We need t o enl arge t hi s advert i si ng market . Some- We need t o enl arge t hi s advert i si ng market . Some- We need t o enl arge t hi s advert i si ng market . Some- We need t o enl arge t hi s advert i si ng market . Some- t i mes our i dea i s t o cat ch up what i s i n hand and t i mes our i dea i s t o cat ch up what i s i n hand and t i mes our i dea i s t o cat ch up what i s i n hand and t i mes our i dea i s t o cat ch up what i s i n hand and t i mes our i dea i s t o cat ch up what i s i n hand and t ake more pi eces. So rat her t han t ake more, here, t ake more pi eces. So rat her t han t ake more, here, t ake more pi eces. So rat her t han t ake more, here, t ake more pi eces. So rat her t han t ake more, here, t ake more pi eces. So rat her t han t ake more, here, t hi s i s t he message. From t hi s program, f or our t hi s i s t he message. From t hi s program, f or our t hi s i s t he message. From t hi s program, f or our t hi s i s t he message. From t hi s program, f or our t hi s i s t he message. From t hi s program, f or our country s economy to progress, we need to make the country s economy to progress, we need to make the country s economy to progress, we need to make the country s economy to progress, we need to make the country s economy to progress, we need to make the pi e bi g. We must enl arge t he advert i si ng i ndust ry. pi e bi g. We must enl arge t he advert i si ng i ndust ry. pi e bi g. We must enl arge t he advert i si ng i ndust ry. pi e bi g. We must enl arge t he advert i si ng i ndust ry. pi e bi g. We must enl arge t he advert i si ng i ndust ry. The bigger it gets the more shares we will have. If The bigger it gets the more shares we will have. If The bigger it gets the more shares we will have. If The bigger it gets the more shares we will have. If The bigger it gets the more shares we will have. If not, it will be getting along with what we have. An- not, it will be getting along with what we have. An- not, it will be getting along with what we have. An- not, it will be getting along with what we have. An- not, it will be getting along with what we have. An- ot her t hi ng i s, our market i ng personnel , previ ousl y ot her t hi ng i s, our market i ng personnel , previ ousl y ot her t hi ng i s, our market i ng personnel , previ ousl y ot her t hi ng i s, our market i ng personnel , previ ousl y ot her t hi ng i s, our market i ng personnel , previ ousl y all they understood was competition. Like competing all they understood was competition. Like competing all they understood was competition. Like competing all they understood was competition. Like competing all they understood was competition. Like competing for competition sake. for competition sake. for competition sake. for competition sake. for competition sake. The thing this side understood, what mention just The thing this side understood, what mention just The thing this side understood, what mention just The thing this side understood, what mention just The thing this side understood, what mention just now, was coexistence. They and we did not have the now, was coexistence. They and we did not have the now, was coexistence. They and we did not have the now, was coexistence. They and we did not have the now, was coexistence. They and we did not have the same cl i ent base. Not the same customer base. You same cl i ent base. Not the same customer base. You same cl i ent base. Not the same customer base. You same cl i ent base. Not the same customer base. You same cl i ent base. Not the same customer base. You take this, I will take this. I won t join you. You don t take this, I will take this. I won t join you. You don t take this, I will take this. I won t join you. You don t take this, I will take this. I won t join you. You don t take this, I will take this. I won t join you. You don t join me. That is one thing. Another thing is, lastly, if join me. That is one thing. Another thing is, lastly, if join me. That is one thing. Another thing is, lastly, if join me. That is one thing. Another thing is, lastly, if join me. That is one thing. Another thing is, lastly, if possible to combine and take over this whole indus- possible to combine and take over this whole indus- possible to combine and take over this whole indus- possible to combine and take over this whole indus- possible to combine and take over this whole indus- try. And so this too is a lesson. To understand this try. And so this too is a lesson. To understand this try. And so this too is a lesson. To understand this try. And so this too is a lesson. To understand this try. And so this too is a lesson. To understand this whol e i ndustry, to have understandi ng, my i ndustry whol e i ndustry, to have understandi ng, my i ndustry whol e i ndustry, to have understandi ng, my i ndustry whol e i ndustry, to have understandi ng, my i ndustry whol e i ndustry, to have understandi ng, my i ndustry must be like this. If the advertising agency was like must be like this. If the advertising agency was like must be like this. If the advertising agency was like must be like this. If the advertising agency was like must be like this. If the advertising agency was like this it would be beneficial to all. Now, I would like to this it would be beneficial to all. Now, I would like to this it would be beneficial to all. Now, I would like to this it would be beneficial to all. Now, I would like to this it would be beneficial to all. Now, I would like to set down two questions. The first one is that it can t set down two questions. The first one is that it can t set down two questions. The first one is that it can t set down two questions. The first one is that it can t set down two questions. The first one is that it can t Market Penetration.pmd 11/22/2013, 4:05 PM 59 60 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 be done now. We have already said so. But what I be done now. We have already said so. But what I be done now. We have already said so. But what I be done now. We have already said so. But what I be done now. We have already said so. But what I woul d l i ke you t o hi ghl i ght a l i t t l e more i s, i n t he woul d l i ke you t o hi ghl i ght a l i t t l e more i s, i n t he woul d l i ke you t o hi ghl i ght a l i t t l e more i s, i n t he woul d l i ke you t o hi ghl i ght a l i t t l e more i s, i n t he woul d l i ke you t o hi ghl i ght a l i t t l e more i s, i n t he current challenges what are they. That s the first fact. current challenges what are they. That s the first fact. current challenges what are they. That s the first fact. current challenges what are they. That s the first fact. current challenges what are they. That s the first fact. Could Daw Khin Khin Kyawt start the discussion. Could Daw Khin Khin Kyawt start the discussion. Could Daw Khin Khin Kyawt start the discussion. Could Daw Khin Khin Kyawt start the discussion. Could Daw Khin Khin Kyawt start the discussion. Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : The current challenge is as I had said. The service industrys asset is people. Mainly people, Saya. Frankly speaking, as presented previously, there are no ad- vertising agency schools we have to train them at the agency. I have already taught over two hundred students at my Sail Advertising. Some are in foreign countries. Some are business- men. Some have become even foreign representatives. These are kids we have trained since 1994. Now too, I have to train only new ones. Theres no plug and play. Wanting client ser- vice, creativity, I just cant go and plug it in, Saya. We must train hard. We appoint a foreigner only as a last resort. My spouse too, very patiently and earnestly trains Myanmars only. Be- cause, these talents going around in this industry and working internationally. They wont be loyal to us. They will come, then change agency. We could not tolerate this kinds so, it is good if our kids succeed and get dollars at other places. Now we can provide the persons we trained. Because Myanmar is no longer sanctioned. And we, like a school has to make sacrifices and train again. The main problem is we dont have human capacity to formulate an advertising agency growth. Another challenge is the change of the media landscape. Now when international agencies come we will need auditable accounts, and transpar- encies. We will need banking infrastructure and banking sys- tems. When they ask for their payment to be done by cheque, the media business persons dont understand what a cheque is. They are the businessmen that request the payment be done in bank notes. Those in the government, those of media business persons too. In Myanmar, banks have to pack bank notes start- ing from the smallest kyat. I cant do that. It is also not our money. The cash basic is not ones own money. It has been good up until now. As the business grows bigger the risk gets larger. After taking the risk the money comes immediatelly. It gets blocked. The station here demands it from us. There are many difficulties. And here we have to adventur- ously innovate and immediately use the pin of pickaxe, as ap- propriate. Building roads for the latter. Here, hotels and other things, ask two rates for foreigners. If you want kyats, make it kyat. If you want dollars make it dollar. And try the exchange rate accept the dollar. Up to now in Myanmar, there is the dollar and kyat. If the FEC vanishes the dollar needs to vanish, I think. Only with this kind of transparency would companies like those come. It has been done since ten years ago and without that kind of transparency, that rate and this rate and black market and, I think the whole lot of this system should be abolished. Prof essor Dr. Aung Tun Thet : Now we have got Prof essor Dr. Aung Tun Thet : Now we have got Prof essor Dr. Aung Tun Thet : Now we have got Prof essor Dr. Aung Tun Thet : Now we have got Prof essor Dr. Aung Tun Thet : Now we have got these two challenges. Now what more? these two challenges. Now what more? these two challenges. Now what more? these two challenges. Now what more? these two challenges. Now what more? Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : In Myanmar the advertising business is locked down, as if it is a signboard drawing job. Like that. As Myanmar economic opens a lot of foreign commodities come in, there will be a lot of income here too. As a lot of money comes in circulation into our business lets say its a promotion. Adver- tising service has not progressed in Myanmar. This little ser- vice. I think our elders should do a little checking on it, Saya. There is trade industry organizations here. There is protection for them. When rules and regulations are drawn they are drawn emphatically for the protection of these organizations. As I said just now, in marketing advertising. There are no laws drawn for this advertising business, Saya. If the client gives us a twist we have to grim and bear it. As long as the media business that Billboards are everywhere in Myanmar. B2B Talk Market Penetration.pmd 11/22/2013, 4:05 PM 60 ACUMEN 61 concerns us can find them money, they accept us, Saya. But they dont have a precise rule and regulation and law used as a bench mark. We have to make their business grow. They will look when they want, wont when they dont want. Advertising is stuck in this. As I said just now, we dont have any protection. Theres no law if something goes wrong. There is no personal. Nobodys protecting. It would be good if a little protection is available. This is the big challenge. Especially the rates change. Each year the media want to demand more fees. When it is raised there must be a time limit. Because the price will be raised in November, we are issued on the 1st or 2nd of October, as you know, Saya, we are working with foreign organizations so we have to work it out in a months advance. Three months advance. A year in advance. As other peoples money has to be used, it hurts us a lot. As that, the time limit can be understood. The relevant media will understand. Organizatons will also understand. If there is a law, it will be very good for us. That is the biggest challenge we are facing. Professor Dr. Aung Tun Thet : I thi nk thi s poi nt i s Professor Dr. Aung Tun Thet : I thi nk thi s poi nt i s Professor Dr. Aung Tun Thet : I thi nk thi s poi nt i s Professor Dr. Aung Tun Thet : I thi nk thi s poi nt i s Professor Dr. Aung Tun Thet : I thi nk thi s poi nt i s important. Protection by law. It has that meaning. But important. Protection by law. It has that meaning. But important. Protection by law. It has that meaning. But important. Protection by law. It has that meaning. But important. Protection by law. It has that meaning. But as you know when AEC comes protection is not the as you know when AEC comes protection is not the as you know when AEC comes protection is not the as you know when AEC comes protection is not the as you know when AEC comes protection is not the word to use. Instead of protect we shoul d use pro- word to use. Instead of protect we shoul d use pro- word to use. Instead of protect we shoul d use pro- word to use. Instead of protect we shoul d use pro- word to use. Instead of protect we shoul d use pro- mote. Set aside advertising for the moment, we want mote. Set aside advertising for the moment, we want mote. Set aside advertising for the moment, we want mote. Set aside advertising for the moment, we want mote. Set aside advertising for the moment, we want to promote the service industry. That s why let s try to promote the service industry. That s why let s try to promote the service industry. That s why let s try to promote the service industry. That s why let s try to promote the service industry. That s why let s try to promote the law first. What kind do we want? As to promote the law first. What kind do we want? As to promote the law first. What kind do we want? As to promote the law first. What kind do we want? As to promote the law first. What kind do we want? As we said just now we will need the protection of the we said just now we will need the protection of the we said just now we will need the protection of the we said just now we will need the protection of the we said just now we will need the protection of the l aw cont ract of t he l aw. Anot her t hi ng i s what we l aw cont ract of t he l aw. Anot her t hi ng i s what we l aw cont ract of t he l aw. Anot her t hi ng i s what we l aw cont ract of t he l aw. Anot her t hi ng i s what we l aw cont ract of t he l aw. Anot her t hi ng i s what we said just now. Relevant to the association what I can said just now. Relevant to the association what I can said just now. Relevant to the association what I can said just now. Relevant to the association what I can said just now. Relevant to the association what I can think of is that when this advertising agency associa- think of is that when this advertising agency associa- think of is that when this advertising agency associa- think of is that when this advertising agency associa- think of is that when this advertising agency associa- tion comes into being, capacity development will be tion comes into being, capacity development will be tion comes into being, capacity development will be tion comes into being, capacity development will be tion comes into being, capacity development will be needed. The need of our industry. At the MBA course needed. The need of our industry. At the MBA course needed. The need of our industry. At the MBA course needed. The need of our industry. At the MBA course needed. The need of our industry. At the MBA course at the Institute of Economics we teach marketing but at the Institute of Economics we teach marketing but at the Institute of Economics we teach marketing but at the Institute of Economics we teach marketing but at the Institute of Economics we teach marketing but not specializing in advertising. The most we can spe- not specializing in advertising. The most we can spe- not specializing in advertising. The most we can spe- not specializing in advertising. The most we can spe- not specializing in advertising. The most we can spe- cialize is that when our students write a thesis, those cialize is that when our students write a thesis, those cialize is that when our students write a thesis, those cialize is that when our students write a thesis, those cialize is that when our students write a thesis, those that are interested in the matter finish by writing as that are interested in the matter finish by writing as that are interested in the matter finish by writing as that are interested in the matter finish by writing as that are interested in the matter finish by writing as advertising MBA thesis. If it really becomes an asso- advertising MBA thesis. If it really becomes an asso- advertising MBA thesis. If it really becomes an asso- advertising MBA thesis. If it really becomes an asso- advertising MBA thesis. If it really becomes an asso- ciation, industry training should be given with a di- ciation, industry training should be given with a di- ciation, industry training should be given with a di- ciation, industry training should be given with a di- ciation, industry training should be given with a di- pl oma certi fi cate. pl oma certi fi cate. pl oma certi fi cate. pl oma certi fi cate. pl oma certi fi cate. U Aung Thura : U Aung Thura : U Aung Thura : U Aung Thura : U Aung Thura : The previous speaker have covered quite a lot of matters. In relevant to capacity our service is an intellec- tual service without any structural process. But our Myanmar social culture has never had the capacity for a creative product. There are few who have. We need to promote it. For instance, this problem always occurs. All is good in their economics. So when this occurs in progress, they go a little laxly in creativity. Here we control everything. So what do we want. We want our new Myanmar to develop. But develop how? As you just said, Saya. In 2015 ASEAN Free Trade matter, when we go free trade then, all the goods starting from shampoo and tooth- paste that comes into our country will be Thai, Singapore, America, French brands. There wont be any made-in-Myanmar. Myanmar brands exported to their market. Even with Thanakar, the Thais remake it and sell it. A culture is needed for such factors to be possible. If asked how could we build such a culture immedi- ately, I wouldnt have a quick answer. How Myanmar can be competitive in this region is a matter opened. And there must be capacity building. There needs to be a right attitude. To di- rect the matter, there must be also personnel who can fulfil it. But more than that what needed is personnel who can do more than demanded. Previously, Myanmar personnel that could follow orders have been bred. Its time we bred those who can do better than ordered. Professor Dr. Aung Tun Thet : Now there are three Professor Dr. Aung Tun Thet : Now there are three Professor Dr. Aung Tun Thet : Now there are three Professor Dr. Aung Tun Thet : Now there are three Professor Dr. Aung Tun Thet : Now there are three chal l enges. As t here wi l l be AFTA, t here s a l ot of chal l enges. As t here wi l l be AFTA, t here s a l ot of chal l enges. As t here wi l l be AFTA, t here s a l ot of chal l enges. As t here wi l l be AFTA, t here s a l ot of chal l enges. As t here wi l l be AFTA, t here s a l ot of Market Penetration.pmd 11/22/2013, 4:05 PM 61 62 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 chal l enges. A l ot of brands wi l l come. One t hi ng I chal l enges. A l ot of brands wi l l come. One t hi ng I chal l enges. A l ot of brands wi l l come. One t hi ng I chal l enges. A l ot of brands wi l l come. One t hi ng I chal l enges. A l ot of brands wi l l come. One t hi ng I want t o t hi nk. I know advert i si ng agenci es are i n want t o t hi nk. I know advert i si ng agenci es are i n want t o t hi nk. I know advert i si ng agenci es are i n want t o t hi nk. I know advert i si ng agenci es are i n want t o t hi nk. I know advert i si ng agenci es are i n Singapore, Lao, Thai. But I think, as they can come to Singapore, Lao, Thai. But I think, as they can come to Singapore, Lao, Thai. But I think, as they can come to Singapore, Lao, Thai. But I think, as they can come to Singapore, Lao, Thai. But I think, as they can come to Myanmar, so could Myanmar advertising agencies go Myanmar, so could Myanmar advertising agencies go Myanmar, so could Myanmar advertising agencies go Myanmar, so could Myanmar advertising agencies go Myanmar, so could Myanmar advertising agencies go to them. I al ways encourage that. In encouragi ng, I to them. I al ways encourage that. In encouragi ng, I to them. I al ways encourage that. In encouragi ng, I to them. I al ways encourage that. In encouragi ng, I to them. I al ways encourage that. In encouragi ng, I urge our own people to be strong. Now, the people urge our own people to be strong. Now, the people urge our own people to be strong. Now, the people urge our own people to be strong. Now, the people urge our own people to be strong. Now, the people are worried what will we do when they come. That are worried what will we do when they come. That are worried what will we do when they come. That are worried what will we do when they come. That are worried what will we do when they come. That depends on t he at t i t ude. What i s rel evant wi t h t he depends on t he at t i t ude. What i s rel evant wi t h t he depends on t he at t i t ude. What i s rel evant wi t h t he depends on t he at t i t ude. What i s rel evant wi t h t he depends on t he at t i t ude. What i s rel evant wi t h t he mi ndset i s that peopl e forget the opportuni ty. They mi ndset i s that peopl e forget the opportuni ty. They mi ndset i s that peopl e forget the opportuni ty. They mi ndset i s that peopl e forget the opportuni ty. They mi ndset i s that peopl e forget the opportuni ty. They are baised thinking how will we face it. That is all are baised thinking how will we face it. That is all are baised thinking how will we face it. That is all are baised thinking how will we face it. That is all are baised thinking how will we face it. That is all rel evant wi t h t he f ol l owi ng orders, submi ssi ve at t i - rel evant wi t h t he f ol l owi ng orders, submi ssi ve at t i - rel evant wi t h t he f ol l owi ng orders, submi ssi ve at t i - rel evant wi t h t he f ol l owi ng orders, submi ssi ve at t i - rel evant wi t h t he f ol l owi ng orders, submi ssi ve at t i - tude. Now, whats your opinion, Daw Nan Nwe Hlaing. tude. Now, whats your opinion, Daw Nan Nwe Hlaing. tude. Now, whats your opinion, Daw Nan Nwe Hlaing. tude. Now, whats your opinion, Daw Nan Nwe Hlaing. tude. Now, whats your opinion, Daw Nan Nwe Hlaing. Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : My challenges are in the main transformation. In reality matters that havent transformed in the decade needs change. A lot of meetings have been called for that transformation. Before we had only the role of the listener. Now we have the chance to speak back. Thats quite different. In the best meeting when I spoke for four hours, I got what I requested them, today. I am very glad of it. So now when we have the chance to speak effectively, comprehen- sively we need not keep our mouths shut, say what we must. Sometimes there are things we dont do because we dont know. So what is our challenge, Ill try my best and talk about it. Its like trying our best to listen to the other side and do our best. As we expect that kind, Im beginning to speak about it. If I believe that a few words, spoken initiates a little change and is ac- cepted a little, it is benefitial to all of us and with that in mind. I have come here. So Ill tell about the biggest challenge as much as I can. Rather than doing it or not, that there may be a little inkling of the matter that, it being accepted when said it is a matter needed to be done. Thats an achievement for us. Professor Dr. Aung Tun Thet : Fi nal l y, the chatti ng Professor Dr. Aung Tun Thet : Fi nal l y, the chatti ng Professor Dr. Aung Tun Thet : Fi nal l y, the chatti ng Professor Dr. Aung Tun Thet : Fi nal l y, the chatti ng Professor Dr. Aung Tun Thet : Fi nal l y, the chatti ng t heme, we have been havi ng t hese t al ks f or our a t heme, we have been havi ng t hese t al ks f or our a t heme, we have been havi ng t hese t al ks f or our a t heme, we have been havi ng t hese t al ks f or our a t heme, we have been havi ng t hese t al ks f or our a year. To say marketing in the former era, it was B2G. year. To say marketing in the former era, it was B2G. year. To say marketing in the former era, it was B2G. year. To say marketing in the former era, it was B2G. year. To say marketing in the former era, it was B2G. It was communi cati ng deal i ng wi th the government. It was communi cati ng deal i ng wi th the government. It was communi cati ng deal i ng wi th the government. It was communi cati ng deal i ng wi th the government. It was communi cati ng deal i ng wi th the government. That was the nature. It was a mixture of politics and That was the nature. It was a mixture of politics and That was the nature. It was a mixture of politics and That was the nature. It was a mixture of politics and That was the nature. It was a mixture of politics and economics. At one time it was, B2G. Later small busi- economics. At one time it was, B2G. Later small busi- economics. At one time it was, B2G. Later small busi- economics. At one time it was, B2G. Later small busi- economics. At one time it was, B2G. Later small busi- ness were B2C, not governmental concern. But as the ness were B2C, not governmental concern. But as the ness were B2C, not governmental concern. But as the ness were B2C, not governmental concern. But as the ness were B2C, not governmental concern. But as the economy sl owl y rai sed i t become B2B (Busi ness t o economy sl owl y rai sed i t become B2B (Busi ness t o economy sl owl y rai sed i t become B2B (Busi ness t o economy sl owl y rai sed i t become B2B (Busi ness t o economy sl owl y rai sed i t become B2B (Busi ness t o Busi ness). As I heard j ust now, al l f our are B2B Busi ness). As I heard j ust now, al l f our are B2B Busi ness). As I heard j ust now, al l f our are B2B Busi ness). As I heard j ust now, al l f our are B2B Busi ness). As I heard j ust now, al l f our are B2B enterpreneurs. Having to contact constantly with cli- enterpreneurs. Having to contact constantly with cli- enterpreneurs. Having to contact constantly with cli- enterpreneurs. Having to contact constantly with cli- enterpreneurs. Having to contact constantly with cli- ents and vendors, the nature i tsel f was B2B. There ents and vendors, the nature i tsel f was B2B. There ents and vendors, the nature i tsel f was B2B. There ents and vendors, the nature i tsel f was B2B. There ents and vendors, the nature i tsel f was B2B. There wasnt much B2C. Of course one wants it to round off, wasnt much B2C. Of course one wants it to round off, wasnt much B2C. Of course one wants it to round off, wasnt much B2C. Of course one wants it to round off, wasnt much B2C. Of course one wants it to round off, in doing B2B with one s client, or one s service pro- in doing B2B with one s client, or one s service pro- in doing B2B with one s client, or one s service pro- in doing B2B with one s client, or one s service pro- in doing B2B with one s client, or one s service pro- vider. So let s conclude with the discussion with your vider. So let s conclude with the discussion with your vider. So let s conclude with the discussion with your vider. So let s conclude with the discussion with your vider. So let s conclude with the discussion with your experi ences. experi ences. experi ences. experi ences. experi ences. Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : Dr. Khin Khin Kyawt : As I said before. In B2B, those of us doing advertising agency work are professionals. Professionals means skilled staff. As there are skilled employees in the agen- cies, those that come and engage our agencies from those big international companies are not owners. They too are profes- sionals. They are experts who have been marketing their prod- ucts internationally for years and we are a local agency. Now when foreign agents come they work with local agents. Skilled personnel working together. And so with the media too, when we use it as a subject in former times, we did as he directed. This kind cant be done now. One must be a professional who can present ones skills precisely with complete facts and data. Then only will a lot of money be spent. In penetrating the market, it must have transparency in the eyes of the sharehold- ers, auditors. And in a professionals work, there must be ex- penditure evidence as well as beneficial profitability. And so as we dont have these professionals, we ourselves have to do, the job, share our skill as well as welcome foreign professionals. Only then would we get a lot of income from foreign companies and that is what our agencies are for. Myanmar is trying to do. B2B Talk Market Penetration.pmd 11/22/2013, 4:05 PM 62 ACUMEN 63 Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : Daw Aye Hnin Swe : B2B, it always is, depending on each other. I like this very much. In English it can be said win-win situation. When working together, one could not just have ones benefit in mind. We have to deal with the client. Also with the media. I always keep telling my colleagues, if ones wants to be favored by the client dont step on them working with you, may then gain good benefit, let them progress. Besides that when the clients wish a thing if impossible just say so. But one thing is that the client is a person who wants value added service. To give a simple example. When buying vegetables at the market, the seller adds a little green chilli for free, I end up always buying at that shop. At the butchers too, I am pleased when the butcher talk nicely, selects a good chop adds a tidbit. This is very simple B2B. Dont seek self gain only. Have in mind the success and the progress of those relevant and develop to- gether. That is my benefit relevant to B2B. U Aung Thura : U Aung Thura : U Aung Thura : U Aung Thura : U Aung Thura : You refer to it as B2B, Saya. But here, at other agencies too, it is referred as partnership. Because as Daw Aye Hnin Swe has mentioned, it has a riposte logic of depending. Of course, partnership is not the kind that nods agreement to everything and does all. If it has a credibility to rightly pointout a mistake, that agency is B2B partnership, will succeed. Another thing, if what you mentioned just now Saya. I want to distinct the customer and client. Because that always gets mixed up. For instance before going into the ad business I worked in the hotel business for about six years. Hotel work is service as advertising is. But the difference is that, in the hotel business, we have to provide the hotel guests all the services during his two, three days stay. If the hotel is clean, food is good for him, it is accepted that this hotel service is good. But when the agencies come the service wont be short-term but long- term. For instance, ten year. What should I give as all example. Lets say like getting married. As if getting married with the client. When one gets to know one intimately one knows about the other as the other knows about one. The other knows if we are lying. If one is talking rubbish the other knows. And the other too comes with the attitude to keep on joining hands. There must be a long-term view. But a short-term look is also needed. Only if this current project can be successfully done will the only projects be continued. What one had last done for them is what they use as a benchmark. Whatever one had done before, if the last project had been wrong, its a problem. When there is satisfaction, the client has to do a long-term investment. Professor Dr. Aung Tun Thet : Theres only one thing. Professor Dr. Aung Tun Thet : Theres only one thing. Professor Dr. Aung Tun Thet : Theres only one thing. Professor Dr. Aung Tun Thet : Theres only one thing. Professor Dr. Aung Tun Thet : Theres only one thing. That concerns all of us. Especially as spectators think- That concerns all of us. Especially as spectators think- That concerns all of us. Especially as spectators think- That concerns all of us. Especially as spectators think- That concerns all of us. Especially as spectators think- ing in short-term. Be it a customer or client, in the ing in short-term. Be it a customer or client, in the ing in short-term. Be it a customer or client, in the ing in short-term. Be it a customer or client, in the ing in short-term. Be it a customer or client, in the current period to think of life time value. When en- current period to think of life time value. When en- current period to think of life time value. When en- current period to think of life time value. When en- current period to think of life time value. When en- gagi ng i t i s not a si ngl e engagement . Now we can gagi ng i t i s not a si ngl e engagement . Now we can gagi ng i t i s not a si ngl e engagement . Now we can gagi ng i t i s not a si ngl e engagement . Now we can gagi ng i t i s not a si ngl e engagement . Now we can guess. When t hi nki ng of t hi s cust omer t he engage- guess. When t hi nki ng of t hi s cust omer t he engage- guess. When t hi nki ng of t hi s cust omer t he engage- guess. When t hi nki ng of t hi s cust omer t he engage- guess. When t hi nki ng of t hi s cust omer t he engage- ment is not for once, or twice. To attract the guest ment is not for once, or twice. To attract the guest ment is not for once, or twice. To attract the guest ment is not for once, or twice. To attract the guest ment is not for once, or twice. To attract the guest after. When coming to Myanmar, staying at the hotel, after. When coming to Myanmar, staying at the hotel, after. When coming to Myanmar, staying at the hotel, after. When coming to Myanmar, staying at the hotel, after. When coming to Myanmar, staying at the hotel, t o t hi nk of no ot her hot el t han t hi s. What happens t o t hi nk of no ot her hot el t han t hi s. What happens t o t hi nk of no ot her hot el t han t hi s. What happens t o t hi nk of no ot her hot el t han t hi s. What happens t o t hi nk of no ot her hot el t han t hi s. What happens now is that we have had little business experience, it now is that we have had little business experience, it now is that we have had little business experience, it now is that we have had little business experience, it now is that we have had little business experience, it is an exclusive case. When its concluded its the end. is an exclusive case. When its concluded its the end. is an exclusive case. When its concluded its the end. is an exclusive case. When its concluded its the end. is an exclusive case. When its concluded its the end. They won t be coming back. That s why between us They won t be coming back. That s why between us They won t be coming back. That s why between us They won t be coming back. That s why between us They won t be coming back. That s why between us and them there is no long-term. Customer s life time and them there is no long-term. Customer s life time and them there is no long-term. Customer s life time and them there is no long-term. Customer s life time and them there is no long-term. Customer s life time value is simply not thought of. What I want to urge is value is simply not thought of. What I want to urge is value is simply not thought of. What I want to urge is value is simply not thought of. What I want to urge is value is simply not thought of. What I want to urge is to do this also. Could Daw Nan Nwe Hlaing continue to do this also. Could Daw Nan Nwe Hlaing continue to do this also. Could Daw Nan Nwe Hlaing continue to do this also. Could Daw Nan Nwe Hlaing continue to do this also. Could Daw Nan Nwe Hlaing continue a little about B2B. a little about B2B. a little about B2B. a little about B2B. a little about B2B. Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : Daw Nan Nwe Hlaing : For us to be able to join hands for long-term, for the past decade we have acted as a one stop agency providing all services. But in reality now the clients, too, do not use one stop services, Saya. Which agency is stronger. They choose that. Now they are carefully choosing. Only then will it be more effective for them. So as B2B if I am to do it for my client in which part am I strong in there two years. In which sector am I weak. We speak about it with them frankly. I can do this. If I cant, then sorry. I cant do this. We deal with our clients honestly. The sector they cant workout, who of our side would be able to provide service, as for it slowly, as there is more transparency, the better. The time has come when we must really set it down frankly and gently. And so in the B2B sector, for me it is to provide, honestly the best service I can for my clients. Professor Dr. Aung Tun Thet : We all already know Professor Dr. Aung Tun Thet : We all already know Professor Dr. Aung Tun Thet : We all already know Professor Dr. Aung Tun Thet : We all already know Professor Dr. Aung Tun Thet : We all already know t hi s mat t er. In busi ness you pi ck what you l i ke. It t hi s mat t er. In busi ness you pi ck what you l i ke. It t hi s mat t er. In busi ness you pi ck what you l i ke. It t hi s mat t er. In busi ness you pi ck what you l i ke. It t hi s mat t er. In busi ness you pi ck what you l i ke. It isn t like now, like that high target a situation not to isn t like now, like that high target a situation not to isn t like now, like that high target a situation not to isn t like now, like that high target a situation not to isn t like now, like that high target a situation not to go to others except one s self. Sometimes there may go to others except one s self. Sometimes there may go to others except one s self. Sometimes there may go to others except one s self. Sometimes there may go to others except one s self. Sometimes there may be reasons to outsource. As advertising agencies, hav- be reasons to outsource. As advertising agencies, hav- be reasons to outsource. As advertising agencies, hav- be reasons to outsource. As advertising agencies, hav- be reasons to outsource. As advertising agencies, hav- ing to outsource one s except ional artists. And so in ing to outsource one s except ional artists. And so in ing to outsource one s except ional artists. And so in ing to outsource one s except ional artists. And so in ing to outsource one s except ional artists. And so in this discussion, these four with I, have completly dis- this discussion, these four with I, have completly dis- this discussion, these four with I, have completly dis- this discussion, these four with I, have completly dis- this discussion, these four with I, have completly dis- cussed this matter. The transformation of the countrys cussed this matter. The transformation of the countrys cussed this matter. The transformation of the countrys cussed this matter. The transformation of the countrys cussed this matter. The transformation of the countrys economy and as it does the service industry that will economy and as it does the service industry that will economy and as it does the service industry that will economy and as it does the service industry that will economy and as it does the service industry that will come more i nport ant . Besi des t he servi ce i ndust ry come more i nport ant . Besi des t he servi ce i ndust ry come more i nport ant . Besi des t he servi ce i ndust ry come more i nport ant . Besi des t he servi ce i ndust ry come more i nport ant . Besi des t he servi ce i ndust ry what is more important is the advertising. Advertis- what is more important is the advertising. Advertis- what is more important is the advertising. Advertis- what is more important is the advertising. Advertis- what is more important is the advertising. Advertis- ing, as said just now is not a thing to be little. In our ing, as said just now is not a thing to be little. In our ing, as said just now is not a thing to be little. In our ing, as said just now is not a thing to be little. In our ing, as said just now is not a thing to be little. In our country advertising is really needed. Let s say brand- country advertising is really needed. Let s say brand- country advertising is really needed. Let s say brand- country advertising is really needed. Let s say brand- country advertising is really needed. Let s say brand- ing. Besides the sale of goods, in our country brand- ing. Besides the sale of goods, in our country brand- ing. Besides the sale of goods, in our country brand- ing. Besides the sale of goods, in our country brand- ing. Besides the sale of goods, in our country brand- ing is also important. What I want to urge is to think ing is also important. What I want to urge is to think ing is also important. What I want to urge is to think ing is also important. What I want to urge is to think ing is also important. What I want to urge is to think of the emergence of an adverti si ng agency associ a- of the emergence of an adverti si ng agency associ a- of the emergence of an adverti si ng agency associ a- of the emergence of an adverti si ng agency associ a- of the emergence of an adverti si ng agency associ a- t i on. As we sai d bef ore t he capaci t y i s weak. Con- t i on. As we sai d bef ore t he capaci t y i s weak. Con- t i on. As we sai d bef ore t he capaci t y i s weak. Con- t i on. As we sai d bef ore t he capaci t y i s weak. Con- t i on. As we sai d bef ore t he capaci t y i s weak. Con- cerning this we have to reform our creativity mindset. cerning this we have to reform our creativity mindset. cerning this we have to reform our creativity mindset. cerning this we have to reform our creativity mindset. cerning this we have to reform our creativity mindset. As it has to be reformed this too is not an established As it has to be reformed this too is not an established As it has to be reformed this too is not an established As it has to be reformed this too is not an established As it has to be reformed this too is not an established i ndust ry I nnovat i on i s needed. I t s a busi ness t hat i ndust ry I nnovat i on i s needed. I t s a busi ness t hat i ndust ry I nnovat i on i s needed. I t s a busi ness t hat i ndust ry I nnovat i on i s needed. I t s a busi ness t hat i ndust ry I nnovat i on i s needed. I t s a busi ness t hat needs except i onal t hi nki ng. Thanks f or gi vi ng me needs except i onal t hi nki ng. Thanks f or gi vi ng me needs except i onal t hi nki ng. Thanks f or gi vi ng me needs except i onal t hi nki ng. Thanks f or gi vi ng me needs except i onal t hi nki ng. Thanks f or gi vi ng me your time. your time. your time. your time. your time. A Market Penetration.pmd 11/22/2013, 4:06 PM 63 adv.pmd 11/22/2013, 4:18 PM 11 adv.pmd 11/22/2013, 4:19 PM 11 66 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Opinion S canning the pages of a newspaper a few days ago, I came across a news item about a ballot held in a European parliament. The parliament was the Greece parliament and a motion of no confidence had been set for ruling. When the ballot cast by the parliamen- tarians were counted it fell into the gov- ernment favour and the government sur- vived another crisis. Be it confidence or trust or belief or faith all of them have similarities. They are intangible yet have more power than any tangible instrument that can make or break a nation or an army or a business or a person. It was Barack Obama, the president of the United States, who said, If the people cannot trust their government to do the job for which it exists to protect them and to promote their common wel- fare-all else is lost. There are things that man can do just so much. And when the necessity to delegate that action arises, who he chooses is a very important matter. Only the right choice could make the expected result come true. Learning to trust is one of lives most difficult tasks, said Isaac Walts. Learning to trust and finding the right person are two matters very relevant. If a person employed as a door keeper cannot be trusted to guard the door open and close it as the occasion rises, it can be said he has defaulted the trust placed in him. But few may find it appropriate la- beling that trifle matter, a door mans duty, with a grandiose word as trust. Yet how- 66 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Turst An Essential Asset.pmd 11/22/2013, 4:09 PM 66 ACUMEN 67 ever low or high the matter, it cant be denied that it is trust that makes the world go round. Because we trust our leaders would do their best for the country, because we trust our army has the might to provide us security, because we trust our banks will keep the finance rolling, we sleep blessed with sweat dreams. As said afore, it is not easy to trust, but it is more difficult to get other per- sons trust. Yet once you get that trust, you have your life made. During the tumultuous times of the 1930s great depression a tycoon had his The history of mankind is full of stories of people who were naughty but gradually won the peoples confidence that made it possible for him to make one and alls dream come true. One such very distinct person was Sir Winston Churchill. Believing he had the ability, he was entrusted with the task to save Britain from the claws of the Nazis and was elected to the post of prime minister. While he had been elected so, his antagonist Hitler also became the chan- cellor of Germany, because the people trusted him, believing that he could raise Germany from the sewage of international Myanmar too suffered in the hands of a defaulter. In the latter years of 1950s the interim government of General Ne Win, issued an official report entitled Trust Vindicated. In that report his government professed that it had been true to the trust. U Nu, the prime minister of Myanmar had placed on it by handing over governmen- tal power to subdue the country that was in turmoil. But a year later, General Ne Win, grabbed back power by coup detat and from then on for the Myanmar citizens trust has been a feeling they no longer have control of. millions wiped out and approached the Wall Street Magnate JP Morgan for a loan. He refused to give him any financial aid, but offered a hands linked walked through the environs of the Wall Street stock ex- change. That intimate posture was suffi- cient to gain the trust of other financiers and soon Mr Morgans friend had all the money he needed to start anew. Theres a business saying, The world runs on credit and the laws of the uni- verse couldnt be truer. From nations that get millions of loans from various inter- national organizations to street ride hawk- ers who get their few thousand kyats worth goods in a short term credit-pur- chase system trust is the latchkey. It is what gets one into the inner chambers of success. politics it had been trodden into. Of those two both fulfilled their obli- gation. But that Hitler was corrupted and that corruption ended by selling the whole world ablaze and obliterating millions of humanity from the face of the earth is another matter. What I wish to spot-light is that Hitler seems to be the last dictator who put up a facade of authenticity when going after power. Of course he may have adapted some tactics of Lenin who had preceeded him in history for about 20 years. Lenin came on to the political scene by calling the poor citizens of Russia to trust him, in his self-proclaimed mission to lead them to a tangible paradise. That he forfeit their trust and how is now history. Until now, with this nascent govern- ment, even people are having to place their trust on the political table, hoping for the best. What they will get in return for the stake they have laid, is very de- batable currently. Will we be a democ- racy country soon? Will be a flourishing a free country? Will we still be a free coun- try tomorrow or will we be again prone under another dictators heel? All are se- rious enough. Trust is an essential asset. When it can be placed safely, very good! But when forced to trust.? Should we just keep on blind faith of heed the words of Rene Descartes, who said, The senses deceive from time to time, and it is pru- dent never to trust wholly those who have deceived us even once. A ACUMEN 67 Turst An Essential Asset.pmd 11/22/2013, 4:10 PM 67 Opinion B eing a HR manager is very tough because j ust t hree si mpl e words would make a change for a person's life. You are hired" or You are fired". I have been working in HR industry for almost five years now.Throughout the years, I had hired and fired many em- ployees. I also gave advices to many cli- ents. However, this is my very first year that I have my own HR consulting firm in Yangon. Most employers find it very hard to get the right employees here in Myanmar. What are the obstacles in re- 68 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 cruiting and what are the issues in hu- man resource management? Here, I would like to focus on re- cruiting than other HR issues because, recruitment is one of the three major func- tions in the HRM and most demanding services we are providing to clients at our consulting firm. According to an analysis, there are three main issues. The first one is lack of skilled candidate. When I describe a skilled candidate, I mean to say someone who has the right qualifications and the right experience for a particular position. An accountant should have accounting degree or diploma and other related cer- tification. When I once tried to recruit mar- keting manager for one of my clients, I found some candidates who have good marketing experience but their educa- tional qualification are in legal or medical studies. I wonder why they did not choose the career in what they had studied. Ev- erybody should be professionals by train- ing as well as by career. That would have a good impact for civil society in a country. As for me, I would rather choose someone who has knowl- edge and theory background, and train that person to give a relevant position. Are you hiring.pmd 11/22/2013, 3:52 PM 68 The second problem is clients want candidates with good experience but are reluctant to pay less than the salary the candidates expect. On the other hand, there are candidates who ask for high remunerations but their qualification and experience does not even meet the job descriptions and job requirements. This is because of high expectation. My advice for employers is simple. If you want to hire someone for higher remunerations than you offer, you just negotiate with the candidate to the amount that you can only offer. And then, you should have a proba- tionary period for three months and you may increase their salary depending on their performance every 6 months. Oth- erwise, you just have to release them af- ter the probation period if they are not the right person for your organisation. The last but not the least important problem is a mutual loyalty between em- ployer and employee. As a recruiter, I have been dealing with hundreds of job seek- ers. Among them, I found out that only a few candidates would take any better opportunity. We cannot blame them be- cause they have their own right and choice. Plus, most of employees have hard- ships in their living because their whole family depends on them, and most are family members in Myanmar. Therefore, they need to seek something that will benefit them and their family issues. As for the employer, they normally ignore their employees' personal problems. The employers probably never give a chance for increasing their salary, and never give a chance in helping them when they are in need. It is a culture in Myanmar that a boss always takes care of his or her staff and treats them as family. I have seen some employees who are working with the same employees for a decade or two. When I have checked their relationship at work, I can vividly see that they have built up trust, respect and appreciation, and I can feel the family vibe at their workplace. And I can tell that this is what most of Myanmar employees are seeking at their workplace. ACUMEN 69 Human Resource Management is still very new to many organisations in Myanmar. I believe that every small or large size of company needs a reliable HR manager because they can manage on organisational structure and human resource development, and also they can create transparency between employers and employees. If it is a small company, then it can associate with recruitment firm for their organisational development. However, HR manager is a must-have for all the large organisations. In this way, they can keep their company's brand and image. I would like to give some tips to the readers, in case if you probably need to recruit or retrench in the future. When you are recruiting employees for your organisation, you need to be aware of the following facts: - As an interviewer, you need to be prepared before you actually talk to interviewees such as reading their cover letter and resume. - You need to always do the per- sonal interview in a systematic way first. The personal inter- views give the idea to check the candidate's personality and for better understanding about that candidate. - You need to trust your gut feel- ings if you trust your candidate. You should have certain chem- istry with your interviewee. - You must get the points of what you need to know from that can- didate. - You must mention them about who exactly you are looking for and what they are expecting from them. Why you rely on a recruiting firm Why you rely on a recruiting firm Why you rely on a recruiting firm Why you rely on a recruiting firm Why you rely on a recruiting firm to get the right candidates for your to get the right candidates for your to get the right candidates for your to get the right candidates for your to get the right candidates for your company? company? company? company? company? - You save money on job adver- tisements and other resources - You save time on screening and reviewing hundreds of resumes - You can get the luxury of check- ing only the short listed candi- dates and choose what you re- ally want - You do not need to negotiate a salary package with job appli- cant as the recruiter will just try to meet the candidate who ac- cepts your offer at the first place How you maintain and retain your How you maintain and retain your How you maintain and retain your How you maintain and retain your How you maintain and retain your good employees in Myanmar? good employees in Myanmar? good employees in Myanmar? good employees in Myanmar? good employees in Myanmar? - Employers need to review per- formance evaluations for re- wards, bonus, perks and things that will motivate their willing- ness to do work. - Employer should provide con- tinuous training opportunity for their employees' skills improve- ment. - You, as an employer, should cre- ate a working environment that fills with mutual respect, under- standing and trust. - An employer should be aware of employee situations and cir- cumstances, and fulfil their needs and catch up with them occa- sionally. - It is very important for you to consider who you are going to keep at your organisation. You do keep employees who are energetic, enthusiastic, and re- spected individuals. And you might have to ask a resignation letter from those who are unfo- cused, upset and unreliable. To conclude, it is never too late to restructure your organisation. We should never let our company less productive and competitive because of the wrong employ- ees. The owner or the manager of com- pany is the only one who should get blame for mistakes. I wish the best for your organisation to get the right candi- dates for the right positions. A Are you hiring.pmd 11/22/2013, 3:52 PM 69 adv.pmd 11/22/2013, 4:19 PM 11 adv.pmd 11/22/2013, 4:19 PM 11 72 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Culture The three Pyu guardians are discovered at Hmawza, at Threkettara, near Pyi (Prome) in 1926. The two were in Kaba- aye Museum, Yangon and the other one in Calcutta Museum. (Luce, 1985, p. 138) These are repouse images of Pyu guard- ians discovered from Khin Ba mound in 1926-7, near Kalagan Gon village, Threkettra. The three guardians were studied by a Thai scholar who published his find- ing in the Journal of the Siam Society some years ago. Mr. Luce notes runs something like this: Each is a silver plate of repouse (without any letter of description) mea- 72 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 suring 7 and a half inches. Each shows a stout standing guardian holding a club, wearing a pant and a hair style deco- rated with different bird feathers. Ear bores are enormously wide and the lobe long touching the shoulders, indicating that formerly they wear large ear plugs.' Mr. Luce's opinion on them stout or robust' seemed to be based on their fat body. This is reasonable as their appear- ance was as such. Considering the artist who worked on these, we can judge his talents as su- perb. He did these at a time of backward- ness, over 1000 years ago, with available tools his hand could lay on. We can sense difficulties he had to overcome. In a limited space of a silver plate, he had to fit in a fully upright guard- ian standing in a pot.' He had to add detail like hair style with long feathers, costume, bold style and so on. The feath- ers naturally should be proudly displayed straight over his head. But he could not do this as the space is too limited. So the feathers were found slanting or somewhat pressed down. Even the guards were slim and tall, which usually were, the artist was forced to reduce their height in a pot.' So the guardians are made fat and reasonably short.' The Three Phyu Guardians.pmd 11/22/2013, 4:08 PM 72 ACUMEN 73 At the same time, the artist tried to con- vey a meaning which we are going to find out. Ancient Myanmar understood aes- thetic value. In puppet plays, prince and princess were made smaller than other characters, as they were dancing figures. Dancing puppets are manipulated from an extended arm. According to a physi- cal law of lever, a puppet originally 4 ki- los is now 8 kilos, heavier on the ex- tended arm. So manipulation is exhaust- ing and sweating. So dancing puppets are made from l i ght er wood, Gamel i na arborea (Yamanay in Myanmar). The puppets were made smaller and smaller never more than 1 and cubits (27 inches). Smaller than this audience at periphery cannot see or hear properly. (There was no loud speaker or amplifier in ancient times). So the size is about 27 inches. Look- ing at a puppet scene for example, the prince is smaller and the villain bigger. But the audience understands the differ- ence and ignore it. T-shirts In Journal of the Siam Society, the Thai scholar noted that the Pyu guardians were found wearing a T-shirt.' At first I thought he was right. I even ran away with the idea that T- shirts were popular a thou- sand years ago among Pyus! Curved lines at the base of neck and around the arm suggested this idea. On enlarging the im- ages in computer to 100 times or more, I can see these lines are definitely or- namental decorations prob- ably made of bronze, silver or even gold which might not be a rare metal at that time. So T-shirt was not a possibility in Pyu period. But pants were definitely in use like ours today. The reader can see it. There was no belt and tighten- ing around the waist was made with a chord. Those who held the idea that pants are western style and anti-Myanmar should reconsider the case and the pos- sibility may be reverse. Pants in Pyu Period Moreover the pants have different design indicating that back-strapped weaving, though domestic, was produc- ing wonderful design. ACUMEN 73 Feathers on head Each guardian is seen with different feathers on their head. Perhaps they could design them on their own or taste and there was no distinction among them. Two of them put on feathers to a cap while the other implanted or attached feathers to his hairs probably by tying with a thread to a tuft of hair as indicated by dangling feathers. Hairpins were un- known in this period. Feather decoration There are many examples to it since prehistoric time. A cave painting in Thai- land shows men wearing feathers on his head. Even a woman was seen wearing a flowing' feathers on top of her head, probably ones similar to ostrich now sur- viving in Australia. Red Indians in America are believed to be Asians. From main land Asia they had crossed Berring Strait into Canada and finally settled in North America. They still like to wear large feather dress. Another example was an image of a wild warrior dance from a bronze drum dug up from Sinbo, upper Myanmar. The drum was exhibited in Sagaing Museum for a time and we have time to study it and its design. It was datable to earliest Dong Song period in Viet- nam, early Iron Age. Dong Song was a site where bronze drums were discovered near Hanoi. It was a transition period from Bronze to early iron period. Since the first serious study of these bronze drum was made in Dong Song, Mr. Hegar named them Dong Song Drums. The drums were found extensively in the whole of Southeast Asia, as far south as Papua New Guinea, and some of the Is- lands closer to mainland Australia. The Sinbo drum shows image of a warrior with a The Three Phyu Guardians.pmd 11/22/2013, 4:09 PM 73 74 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 head dress with long flowing leaves sug- gestive of feathers. (See sketch) The drum is exhibited in Sagaing museum for some time before it was sent back to Sinbo. (See photo of the drum and sketch) The man was holding a sword in his right hand and a double flag in his left. The whole picture glorified their valor in the last fight against the enemy. It might be fascinating to watch the warrior wild with drinks, dancing with drum beats! On enlarging this image in a computer, some- thing like a mask may be seen on his face. Another example from Myanmar is a potsherd discovered in 2009 from a pri- vate collection of U Kyaw Khin. He is a retired headmaster now living at Nwe- ta-mae village, Sinbyu-kyun township. The potsherd shows a man, tall and strong as indicated by a broad shoulder and a bold outlook focusing to a distance. On his head is a long bird feather possibly of peacock. Perhaps he was an ancient Myanmar and a hunter gatherer from Stone Age. But the image of this lonely stone age man was done by a settler as his work is found on a potsherd. Pots were made by settlers' community based near a source of water. Surely the potter was impressed by this lonely and lone- some man! The Clubs A guardian's glorified weapon is a club. Was a club inferior to a sword or spear? It was and still is well a debate among the historians. At close fight and in the hands of well trained soldiers, a club was a decisive weapon and as equally effective weapon as a sword in ancient time.Along Phya (1752-1760), a village head man who founded the last dynasty in Myanmar sent his club soldiers to battle and won many decisive victories. What was the meaning behind the silver plates. In fact we do not know as- sociated items when they were dug up. These might give us important clues to make out and decide the meaning of these plates. However, the pot with the anthro- pomorphic' content, and a cover to pre- vent its escape plus an additional double t hread wound around the pot three times to ensure its long stay inside in- dicates a magical empl oyment t o guard a treasure or a sacred item. One thing is sure to note that Pyu did not employ live human sac- rifice! This is a magic employment. Regarding magic, most western writ- ers were found bent ready on that these were borrowed from southern India. Magic arts everywhere are always elabo- rate in its ritual and visual presentation to ensure success and win over the cus- tomer. Usually magic arts are indigenous and reflect elaboration of thinking power of human brain. What he sees with his eyes, what he makes with his hands and what he thinks about are all co-related like a triangle. This is a promoting step to better brain development (encephalization- a difficult medical term) in evolution. Chil- dren playing about with toys (seeing, han- dling and thinking- the three trios) favor or accelerate their brain's faster develop- ment. Humans are always inventive and incentive. New ideas can develop on their own and do not need to borrow from neighbor. A References: - John Guy, A Warrior Stele from SriKsetra,' JSS, vol 85, part 1 and 2. - Dr. Tin Maung Kyi, Three Pyu Guardians' (Myanmar language), Myanmar Thit Magazine, No 1, October 2008, page 65-66. The Three Phyu Guardians.pmd 11/22/2013, 4:09 PM 74 adv.pmd 11/22/2013, 4:20 PM 11 76 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Dining Out 76 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 Dining Out- Wasabai.pmd 11/22/2013, 6:32 PM 76 ACUMEN 77 ACUMEN 77 Dining Out- Wasabai.pmd 11/22/2013, 6:32 PM 77 78 ACUMEN www. mya nma r b2bma ga z i ne. c om December 2013 B BB BBA AA AAY YY YYS SS SS FLIuBT FLIuBT FLIuBT FLIuBT FLIuBT BEP BEP BEP BEP BEP ARRI ARRI ARRI ARRI ARRI B BB BBA AA AAY YY YYS SS SS FLIuBT FLIuBT FLIuBT FLIuBT FLIuBT BEP BEP BEP BEP BEP ARRI ARRI ARRI ARRI ARRI B BB BBA AA AAY YY YYS SS SS FLIuBT FLIuBT FLIuBT FLIuBT FLIuBT BEP BEP BEP BEP BEP ARRI ARRI ARRI ARRI ARRI Yangon Bangkok BAILY Tu Tu Tu Pu Pu Pu Pu FB FB FB N N Bangkok Yangon BAILY Tu Tu Tu Pu Pu Pu Pu FB FB FB N N Yangon Singapoie BAILY SQ NI N NB NB AK AK N0N NI N N T0E NI N N WEB N N TB0 N International Flight Schedules FRI N N N SAT NI N N N S0N NI N N Singapoie Yangon BAILY SQ NI N N N N NB N AK AK N0N N T0E N WEB N FRI NI N SAT N S0N NI Yangon Banoi N0N vN T0E vN WEB vN TB0 vN FRI vN SAT vN S0N vN vN Banoi Yangon N0N vN T0E vN vN vN vN WEB vN TB0 vN vN vN vN FRI vN SAT vN S0N vN vN vN vN vN Yangon Bo Chi Ninh N0N vN T0E vN WEB vN TB0 vN SAT vN S0N vN vN Bo Chi Ninth Yangon N0N vN vN T0E vN WEB vN vN TB0 vN SAT vN vN S0N vN vN vN Yangon uuangzhou N0N CZ T0E N WEB CZ TB0 N FRI CZ SAT CZ S0N N Flight Schedule.pmd 11/22/2013, 3:55 PM 78 ACUMEN 79 B BB BBA AA AAY YY YYS SS SS FLIuBT FLIuBT FLIuBT FLIuBT FLIuBT BEP BEP BEP BEP BEP ARRI ARRI ARRI ARRI ARRI B BB BBA AA AAY YY YYS SS SS FLIuBT FLIuBT FLIuBT FLIuBT FLIuBT BEP BEP BEP BEP BEP ARRI ARRI ARRI ARRI ARRI B BB BBA AA AAY YY YYS SS SS FLIuBT FLIuBT FLIuBT FLIuBT FLIuBT BEP BEP BEP BEP BEP ARRI ARRI ARRI ARRI ARRI uuangzhou Yangon N0N CZ T0E N WEB CZ TB0 N FRI CZ SAT CZ S0N N Yangon Kunming BAILY N0 T0E CA WEB CA TB0 CA SAT CA S0N CA Kunming Yangon BAILY N0 T0E CA WEB CA TB0 CA SAT CA S0N CA Yangon Tai Pei BAILY CI Tai Pei Yangon BAILY CI Yangon Nanning WEB N0 SAT N0 Nanning Yangon WEB N0 SAT N0 Yangon Boha BAILY QR Boha Yangon BAILY QR Yangon Chaing Nai TB0 W S0N W Chiang Nai Yangon TB0 W S0N W Yangon Bong Kong N0N KA T0E KA TB0 KA SAT KA Bong Kong Yangon N0N KA WEB KA FRI KA S0N KA Yangon Seoul BAILY KE TB0 0Z S0N 0Z Seoul Yangon BAILY KE WEB 0Z SAT 0Z Yangon Kolkata BAILY Tu Tu Tu Tu N0N AI FRI AI AI Kolkata Yangon BAILY Tu Tu Tu Tu N0N AI AI FRI AI Nanualay Kunming BAILY N0 Kunming Nanualay BAILY N0 Nanualay Bangkok BAILY FB Pu N0N Tu T0E Tu WEB Tu TB0 Tu FRI Tu SAT Tu S0N Tu Bangkok Nanualay BAILY FB Pu N0N Tu WEB Tu T0E Tu TB0 Tu FRI Tu SAT Tu S0N Tu Flight Schedule.pmd 11/22/2013, 3:55 PM 79 adv.pmd 11/22/2013, 4:47 PM 11 adv.pmd 11/22/2013, 4:14 PM 11 adv.pmd 11/22/2013, 4:14 PM 11