March 13-19, 2014

Myanmar Business Today

mmbiztoday.com
mmbiztoday.com March 13-19, 2014 | Vol 2, Issue 11 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Sostuining Progress und Minimising Risks in Myunmur
How to overcome emerging market volatility in Myanmars future
Dan Steinbock
A
fter half a century of iso-
lation, Myanmars im-
mediate challenge is to
sustain reforms, boost foreign
investment and diversify its
industrial base. Unlike other
Asian tigers, it must cope with
a far more challenging interna-
tional environment.
Recent headlines from My-
anmar have caused unease in
the United States, Europe and
Japan. While the controversies
are social by nature, they have
indirect economic implications.
First, the aid agency Medecins
Sans Frontiers (Doctors With-
out Borders) was ordered to
cease operations as the Presi-
denL`s om ce uIIeged LIuL LIe
MSF was biased in favour of
Rakhines Muslim Rohingya
minority. Then, President him-
self asked parliament to consid-
er an intermarriage law, which
appears to call for the kind of
restrictions that opposition
leader Aung San Suu Kyi has
condemned.
Meanwhile, the global agri-
culture giant DuPont launched
its business operations in the
country. Indeed, as foreign
companies have been rushing
to Myanmar, the commercial
capital Yangon is struggling
with Southeast Asias highest
In 2012/13, Myanmars economy grew at 6.5 percent. Fuelled by increased gas production, services, construction, foreign
investment and strong commodity exports, it is on track to grow 6.9 percent in the medium-term.

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om ce renLuI ruLes.
But could the recent emerging
market volatility sweep across
the country?
Catch-up i n the
post-globali sati on er a
In the next 5-10 years, Myan-
mar has potential to evolve into
a mini-BRIC; that is, a rapidly
growing large emerging econo-
my but only if it relies on the
right growth conditions and can
sustain the momentum.
SInce LukIng om ce, PresIdenL
Thein Sein has introduced a
sIuLe oI reIorms und sIgnIhcunL-
ly improved Myanmars ties
with Washington and European
countries, which has unleashed
u rupId Inow oI WesLern Lrude
and investment. The advanced
economies are fascinated with
Myanmar, its population of 60
million people and the last re-
maining emerging economy.
Economically, Myanmar lost
half a century of progress, due to
its geopolitical insulation. With
underdeveloped institutional
capabilities, poor revenue per-
formance has led to persistent
hscuI dehcILs, wIIcI Iuve been
hnunced by LIe cenLruI bunk. As
u resuIL, voIuLIIe InuLIon uver-
aged 23 percent between 2001
and 2010, which hit the poor
hard, undermining domestic
conhdence In LIe kyuL.
Myanmar is larger than
France in size, but has a young
labour force, abundant natural
resources, including natural
gas, copper, timber and gem-
stones. In 2012/13, Myanmars
economy grew at 6.5 percent.
Fuelled by increased gas pro-
duction, services, construction,
Contd. P 12...(Sustaining) Contd. P 12...(Sustaining)
Myanmar Summary
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March 13-19, 2014
Myanmar Business Today
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2
LOCAL BIZ
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Board of Editors
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Ph - 09 40 157 9090
Reporters & Writers
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Shein Thu Aung Phyu Thit Lwin, Daisuke Lon,
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Ph - 09 7310 5793
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Translators
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Bosiness News in BrieI
Over 10,000 local compani es yet to pay taxes
A total of 10,670 local private companies have not
puId Luxes Ior LIe hscuI yeur endIng on MurcI 1, un un-
nouncement by the Internal Revenue Department said.
Mgonmor's rice exports foll this pscol geor
Myanmar has so far exported about 1 million tonnes
oI rIce LIIs hscuI yeur endIng on MurcI 1, down Irom
over 1.4 million tonnes in 2012-2013, local media
quoted Commerce Minister Win Myint as saying. The
unstable political situation in Thailand and the fall in
demand from China had some impacts on Myanmars
rice exports this year.
Author i ti es per mi t 166 hotel pr oj ects i n 2
months
Myanmar authorities have permitted 166 new hotel
projects with over 7,800 rooms at major tourist spots in
the past two months to cater to growing tourist arrivals,
local media reported quoting Aung Zaw Win, director
general at the Hotels and Tourism Ministry.
US may gr ant GSP on 5,000 Myanmar pr od-
ucts soon
US may grant Generalised System of Preferences
(GSP) trading privileges on about 5,000 Myanmar
products in April or May, local media reported, citing
Maung Maung Lay, Vice Chairman of the Federation
of the Chambers of Commerce and Industry. Myanmar
is entitled to GSP for 5,000 items of goods as it is one
of the least developed countries, and marine products,
pulses, beans, gems and handicrafts will be on the top
of these items, Lay said.
Myanmar to allow i mpor t of alcoholi c dr i nks
Liquor, beer and wine will soon be allowed to be im-
ported into Myanmar after ongoing talks among respec-
tive government departments and chambers of com-
merce hnuIIse Luxes und duLIes, IocuI medIu reporLed,
citing Commerce Minister Win Myint. Overtaxing can
lead to smuggling, while under-taxing can encourage
Iree ow oI drInks InLo LIe counLry, WIn MyInL suId.
Myanmar banks to launch i ntl co-br anded
car ds
Myanmar Payment Union (MPU), an association of
local banks, is planning to introduce international co-
branded cards that can be used in over 100 countries in
cooperation with JCB (Japan Credit Bureau) and CUP
(China Union Pay), local media quoted Zaw Kin Htut,
MPU CEO, as saying.
Myanmar ear ns over $1.1b fr om gar ment ex-
por t
Myanmar earned more than $1.1 billion in 2013 from
garment exports due to EUs restoration of GSP (Gen-
eralised System of Preferences) trading privileges, local
media reported, quoting Myint Soe, chairman of My-
anmar Garment Manufacturers Association. Garment
exports in Myanmar are expected to reach $1.5 billion
in 2014, the report said.
Myanmar ends cotton expor t ban
At the request of dealers, the Ministry of Commerce
wIII uIIow coLLon exporL eecLIve MurcI , Ior LIe hrsL
time in over 20 years, local media reported, citing in-
dustry sources. The ban on the export of cotton has
made cotton growers incur losses, the daily added.
Myanmar adds emer gency medi cal
Shwe Zanaka Company will provide emergency
healthcare services for tourists visiting Kyaiktyo, Mon
sLuLe eecLIve AprII 1 und wIII expund LIe servIce uILI-
mately to other popular tourist sites in Myanmar. En-
dorsed by the Ministry of Tourism, the company will
cooperate with ambulance services, the Ministry of
HeuILI und IocuI IospILuIs Lo oer medIcuI servIces Ior
foreign visitors.
DI CA says no to full for ei gn i nvestment i n tour -
i sm
The government has no plans to permit full foreign
investment in Myanmars tourism sector, according to
the Directorate of Investment and Companies Adminis-
tration (DICA). Joint ventures in tourism sector will be
allowed only with Myanmar citizens and DICA is soon
going to release an announcement stating which in-
dustries will or will not be permitted for joint ventures,
Aung Naing Oo, director general of DICA, said.
Myanmar Summary
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March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
3
LOCAL BIZ
Current planned and future hydropower projects
across trans-boundary river systems also have the
potential to spark diplomatic incidents with neigh-
bouring countries, as the majority of the electric-
ity generated from these projects is planned to
be exported outside of Myanmars borders.
Negotiuting Conict to Hurness
Myunmur's Hydropower
Elliot Brennan &
Stefan Dring
M
yanmar urgently
needs to increase its
electricity generat-
ing capacity to meet ambitious
economic development targets
and accommodate rising pow-
er demands from new foreign
and local investment projects.
Yet harnessing Myanmars hy-
dropower potential will be a
perilous process, as seen in the
controversies surrounding cur-
rent planned dams along the
Than lwin river (also known
as Salween river) as well as the
geopolitically fraught and sus-
pended Myitsone dam.
Many of Myanmars rivers are
suitable for hydroelectric dams,
which currently contribute the
base load to the countrys en-
ergy supply. At the same time,
dam construction alters the
natural environment and usu-
ally requires the controversial
reIocuLIon oocuI popuIuLIons.
Moreover, with the country
in the midst of a tentative na-
LIonuI ceusehre process, dum
sites have the potential to stir
latent or resurrect suspended
conIcLs.
Current planned and future
hydropower projects across
trans-boundary river systems
also have the potential to spark
diplomatic incidents with
neighbouring countries, as the
majority of the electricity gen-
erated from these projects is
planned to be exported outside
of Myanmars borders. The Chi-
na-led Myitsone dam project,
for instance, was scheduled to
export 90 percent of its gener-
ated power for consumption in
China. President U Thein Sein
said at the time the suspension
was in respect of the peoples
will.
Access to water has long been
u source oI conIcL In Myunmur.
Multiple stakeholders, from
farmers to factories, are often
stretched across national bor-
ders, making equitable water
management a nettlesome pro-
cess. For Myanmars nascent le-
gal environment, still governed
largely by old structures of
nepotism and patronage, regu-
lating water-use is particularly
dIm cuIL und wIII conLInue Lo be
so as the economy adds new in-
dustry on riparian lands.
According to local media re-
ports, Myanmar is now plan-
ning to build around 45 new
hydropower dams. The need
for infrastructure development
in Myanmars energy sector is
woefully apparent: the country
has frequent power shortages;
the commercial capital of Yan-
gon is notorious for brownouts
and blackouts. Remarkably,
electricity output only reaches
approximately a quarter of the
countrys population, according
to the World Bank.
As a result, power shortages
sIgnIhcunLIy Iumper Myun-
mars economic development as
businesses necessitate consist-
ent supply and a reliable power
infrastructure. For the next 20
years, a business-as-usual es-
timate made by the Asian De-
velopment Bank forecasts a 3.1
percent annual growth of na-
tional energy demand. Within
the same timeframe, about 20
percent of the generated elec-
tricity will come from hydro-
power, which is anticipated to
have the fastest annual growth
rate of all energy sectors.
Much of the newly generated
energy is nonetheless set for
export to neighbouring China
and Thailand. The regulations
for planned dam projects on the
Thanlwin river reserve only 25
percent of the produced energy
to Myanmar, while the Kunlong
hydropower project, also known
as the Upper Salween dam, will
reportedly only transmit 15 per-
cent of its produced energy into
the domestic grid system.
Many of these planned pro-
jects, such as the Kunlong, have
been tabled for the Salween
river, a largely under-utilised,
2,800-kilometre waterway
originating in the Tibetan Pla-
teau that runs along Myanmars
eastern border and epitomises
the countrys huge untapped
hydropower potential. Depend-
ing on the source, there are cur-
rently between six and 12 dam
projects planned for hydropow-
er production on the Thanlwin.
In September last year, U Maw
Tha Htwe, the director-general
of the Hydropower Implemen-
tation Department, disclosed
that feasibility studies are ongo-
ing for six hydropower projects
on LIe TIunIwIn - hve oI LIose
are targeted to generate 1,000
megawatts (MW) or more.
Feasibility studies have been
concluded for the dams near
Kunlong, NaungPha as well as
a smaller project near Mann-
taung, according to local media
reports. The most ambitious
project is the Tasang hydropow-
er dam, which is projected to
generate more than 7,000MW.
Standing 228 metres high, the
Tasang will be South Asias
highest dam, exceeding the size
of the massive Three Gorges
Dam in China.
As the Thanlwin runs through
Shan, Kayah, Karen and Mon
states, all planned dam sites are
situated in ethnic minority ar-
eas with resident armed groups
hgILIng Ior vuryIng degrees oI
autonomy. As such, construc-
tion sites are often within or
neurby recenL conIcL zones.
Some of the construction plans
have been indirectly or directly
InLerIInked wILI LIe ceusehre
and peace agreement process.
This applies especially to
those armed ethnic groups who
demand economic concessions
as part of anticipated upcoming
peace agreements. This emerg-
Myanmar Summary
Contd. P 22...(Myanmar's Hydropower) Contd. P 22...(Myanmar's Hydropower)
Thanlwin (Salween) river and planned dams.
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March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
LMW Bugs $1om Myunmur
rilling Contruct
M
alaysia-based UMW
Oil & Gas Corp Bhds
unit, UMW Petrodrill
(Malaysia) Sdn Bhd, has won a
$10-million contract from PT-
TEP International Ltd Yangon
Branch to provide hydraulic
workover unit and related ser-
vices for its M9 drilling cam-
paign in Myanmar.
TIe conLrucL Is Ior 11 hrm
wells with options for addition-
al wells, and operations are ex-
pected to start at Zawtika Field
in Martaban Gulf by June.
With this new market pen-
etration, we hope for more op-
portunities to secure contracts
in Myanmar, not only for work-
over services, but also for our
drIIIIng und oIIheId servIces,
said president Rohaizad Darus.
Our company will aggres-
sively continue to pursue op-
portunities to expand our
geographical coverage in the
AsIu-PucIhc regIon us purL oI
our growth plan and revenue di-
Pann nu versIhcuLIon sLruLegy, Ie suId.
PTTEP International is a sub-
sidiary of PTT Exploration and
Production Public Company
Ltd, a subsidiary of the national
oil company of Thailand.
Myanmar Summary
Myanmar Summary
Puce oI Log Shipments
Increuses oe to Ixport Bun
T
he pace of log export
shipments has increased
recently, not because of
improved demand but rather
the urgency with which buyers
want to ship the logs that they
have in yards in Myanmar be-
fore the log export ban comes
InLo eecL In AprII, LIe nLernu-
tional Tropical Timber Organi-
zation (ITTO) said.
Despite the pick-up in ship-
ments analysts still anticipate a
substantial quantity of logs will
remain at log yards in Myanmar
when the log export ban comes
InLo eecL on AprII 1.
Export shipments from April
to the end of January 2014 are
estimated to have been over
398,000 cubic metre for teak
logs and about 1.3 million cu.m
for other hardwood logs.
While there is doubt in some
quarters that the log ban will
really be implemented, up to
now the government seems de-
Kyaw Min termined to go through with its
decision to ban log exports after
April 1.
After the ban only processed
wood will be allowed but what
constitutes processed is now
being discussed. Some observers
say continued exports of baulk
squares roughly hewn logs
but not further manufactured
would be an option to sustain the
Indian market, the biggest im-
porter of Myanmar teak logs.
Another debate is centred on
whether domestic companies
will be able to compete with
mills set up by foreign investors
us LIey benehL Irom Lux IoII-
days for a certain period.
This, say local millers, will
give foreign companies a huge
advantage. Most analysts are of
the view that it is unlikely that
export of baulk squares will be
allowed but an announcement
from the Ministry of Environ-
mental Conservation and For-
estry (MOECAF) is expected to
clarify this. ....q:..~._..~ UMW
Oil & Gas Corp Bhd - ..,.
e,._e...: UMW Petrodrill
(Malaysia) Sdn Bhd ._ PTTEP
International Ltd - q,~,..,.
.. ~..q~,..'.: ~~ .,. ~,e.
q ._ . . , ...:~ _ .~ ~. .
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workover unit ..~..~,..:.
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Darus ~ ._.:_~:..._.
-_..~ ..~...~~..~
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,~~~ .~:. ~_.:....:....
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~q._e .,.,..qq._.
Labourers work on a cargo ship loaded with logs at the Thilawa Port in Yangon.
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March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
oPont Sturts Myunmur Operutions; Iyes
Agricoltore, Iood, Inergy
Zayar Phyo
A
merican science
and chemical giant
DuPont has start-
ed its business operations
in Myanmar eyeing to tap
the Southeast Asian na-
tions agriculture, food,
energy and construction
sectors.
The company said it
aims to address the coun-
trys challenges in feeding
the growing population
and reducing dependence
on fossil fuels.
DuPont Myanmar will
focus on strengthening
its local presence through
collaboration with local
purLners Lo oer scIence-
powered solutions in ag-
riculture, food, energy
and construction, the
hrm suId. WILI LIe move,
Myanmar became the 8
th
ASEAN country and the
19th Asia territory for Du-
Pont.
Myanmar has one
of the fastest growing
economies and a promis-
ing potential to advance
ASEANs growth. [The of-
hce openIng| reecLs our
long-term commitment
in helping meet the coun-
trys needs in agriculture
and food, energy and en-
vironmental protection,
said DuPont ASEAN
Group Managing Director
Hsing Ho.
The government has
signalled its intention to
become one of the worlds
leading rice exporters
again, making rice crop
and agriculture a key
growth sector for Myan-
mar. The country also
faces pressing challenge
on developing sustainable
and clean energy sources.
DuPont is applying its
broud runge oI scIenLIhc
knowledge and innova-
tion to address these ur-
gent needs. We believe
that no company alone
can solve them. We in-
tend to work collabora-
tively with government,
NGOs, academic, custom-
ers and business partners
Lo hnd susLuInubIe soIu-
tions, Hsing said.
Integrated science can
play a critical role in sup-
porting Myanmars sus-
tainable growth priorities
especially in agriculture,
food, and energy, said
DuPont Myanmar Man-
aging Director Sittideth
Sriprateth.
DuPont said it aims
to enable local farmers
through advanced agri-
culture technologies and
practices such as max-
imising the yield from
hybrid seeds, protecting
heIds uguInsL pesLs und
disease, enhancing foods
nutritional value and re-
ducing waste by packag-
ing food to protect it from
contaminants and decay.
DuPont claims to put
in over 60 percent of
DuPonts total global re-
search and development
budget towards agricul-
ture and food.
Sittideth said the com-
pany is also poised to ad-
dress the rising demand
for secure, environmen-
tally sustainable and af-
fordable energy sources
such as solar energy.
Over 70 percent of all
photovoltaic solar panels
ever made globally use
DuPont materials, he
said.
We are committed to
the collaboration among
all public and private or-
ganisations and experts
across all key industries
with an aim to build sus-
tainable growth for My-
anmar. We also are ex-
ploring opportunities to
support community ini-
tiatives and local people
development, Sittideth
said.
DuPont, established
in 1802, has more than
10,000 scientists and en-
gineers working across
150 R&D centres globally.
The company racked up
$35.7 billion in revenues
2013, and has 63,000
sLu In over qo counLrIes.
A DuPont logo is pictured on the EMEA (Europe, Middle East & Africa) and Du Pont de Nemours Interna-
tional SA building in Grand-Saconnex near Geneva.
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March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
New Iru Ior Myunmur's Mining Indostry
Michael Nesbitt
W
ide-ranging reforms,
backed up by planned
legislative changes
and a drive to improve practic-
es, look set to steer Myanmars
mining sector into the 21st cen-
tury.
Myanmar has a vast and di-
verse mix of mineral resources,
including jade, copper, gold,
coal, tin, tungsten and nickel.
However, the early stage of de-
velopment means it still lacks
the modern surveying tech-
niques needed to move the min-
ing industry forward.
The countrys leadership will
be hoping that a new law gov-
erning the sector, which is ex-
pected to be introduced within
weeks, will generate newfound
conhdence umong InvesLors,
many of whom have held back
due to a lack of reliable data and
concerns about past practices.
Data di scr epanci es
Jade likely tops the list of
Myanmars mineral exports in
terms of value, but accessing
hgures Ior LIe IndusLry, wIIcI
has long been dominated by the
military regimes private busi-
ness fronts, the Myanmar Eco-
nomic Corporation and Union
of Myanmar Economic Hold-
Ings, Is u dImcuIL Lusk.
Foreign investors and observ-
ers have had to make do with
undersLuLed omcIuI hgures on
mineral resource production
and exports, alongside estima-
tions for neighbouring imports.
OmcIuI sLuLIsLIcs, Ior exum-
ple, show jade exports reaching
$34 million in 2011/12, while
sepuruLe hgures IndIcuLe LIuL
sales of the mineral at the an-
nual gems emporium in Nay Pyi
Taw amounted to $2.66 billion
in 2011. According to a report
by an economist at Harvards
Kennedy School, exports of the
stone likely ranged between $6
billion and $9 billion in 2011.
Spr i ng clean
The governments drive to
clean up the industrys im-
age, spearheaded by an ambi-
tious restructuring programme
launched in 2012, is now gain-
ing momentum. Myanmars ef-
forts include plans to join the
Extractives Industries Trans-
parency Initiative (EITI), a
global group made up of gov-
ernments, businesses and other
representatives, which aims to
improve accountable manage-
ment of revenues from natural
resources.
EITI members are obliged to
ensure full disclosure of all pay-
ments within the sector and
allow observers to review both
LIe orIgIns und hnuI desLInuLIon
of payments. The practice is
aimed at bringing added trans-
parency and accountability to
the industry.
Myanmar has said it will ap-
ply for EITI candidature in the
coming months. We want to
use the EITI to ensure that these
resources are developed and
managed in a transparent man-
ner Ior LIe susLuInubIe benehL
of our people, President Thein
Sein said at the end of 2013.
Political and economic re-
forms are an important part of
the democratisation process.
Becoming a member of the EITI
will be a tangible result of these
reforms.
U Soe Thane, minister for the
PresIdenL`s Omce, wIo wIII Ieud
the reforms in Myanmar, has
put together a multi-stakehold-
er group that will develop a plan
to move the process forward.
Legi slati ve changes
Myanmar is also poised to in-
troduce a new mining law this
year, which would overhaul the
20-year-old legislation current-
ly in place.
The law is expected to pave the
way for new international part-
ners to enter the market and
upgrade its practices. For many
years, due to sanctions imposed
by the US, EU and other West-
ern countries, China has been
the primary investor and buyer
in the minerals sector. This has
left Myanmar little in the way of
exIbIIILy, wILI no room Lo exerL
leverage across the sector.
Nowadays, we are in a posi-
tion to invite investors with ad-
vanced technology and reliable
investment from any country,
minister for mines Myint Aung
told OBG.
Although exploration activi-
ties will have many challenges,
the mining industry has the
potential to drive economic
growth, while fostering foreign
investment.
Benepts for oll
Despite a drive under way in
Myanmar to roll out reforms,
many investors have, to date,
chosen to observe the indus-
trys developments from the
sidelines. Uncertainty, a lack of
information and not-so-distant
memories of murky practices
have meant that even investors
associated with riskier ventures
in emerging markets have held
back.
Myanmar will be hoping that
2014 signals a new era for the
industry which will see its peo-
ple reaping the rewards of the
countrys natural wealth.
Income from the industry
will go toward both corporate
social responsibility projects
and mine closure programs, U
Myint Aung told parliament in
February, commenting on the
new mining law.
Michael Nesbitt, is Editorial
Manager at Oxford Business
Group (OBG).
Myanmar Summary
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A truck transports waste at a copper mine in Sarlingyi township.
S
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The countrys leadership will be hoping that a
new law governing the sector, which is expected
to be introduced within weeks, will generate
newfound confidence among investors, many of
whom have held back due to a lack of reliable
data and concerns about past practices.
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
7
LOCAL BIZ
Myanmar Summary
Toorism Indostry Iyes $1.b in IYo1q-1g
I
ncome from travel and tour-
ism sector in Myanmar is
to hit $1.2 billion as the
formerly-reclusive state expects
tourist arrivals to swell to three
mIIIIon In zo1q-1 hscuI yeur,
travel and tourism industry in-
siders say.
n zo1, LourIsL urrIvuI hg-
ure was about two million with
$900 million in tourism re-
ceipts. As we expect 3 million
Phyu Thit Lwin LourIsLs In LIe comIng hscuI
year, tourism income should
hit about $1.2 billion, U Aye
Kyaw, a travel and tour entre-
preneur, said.
Tourists visiting Myanmar
stay in the country for at least
two days and a tourist usually
spends about $400 on average
including accommodation ex-
penses, he said.
France topped the chart
among European countries in
terms of visitor numbers last
year with a total of 33,250 tour-
ists coming to the Southeast
Asian country, while Thailand
remained the top Asian country
with 116,126 visitors.
In Asia, Japan placed second
with 66,772 visitors, followed
by South Korea (54,599) and
China (54,325), while in Eu-
rope, the UK came second with
31,172 visitors and Germany
came third with 25,565 tourists.
A total of 885,476 tourists
came by air, while land border
checkpoints saw 1.2 million
tourists and cruise ship arrivals
hit 6,086.
Among the travellers coming
via air, 803,014 came through
the countrys commercial hub
Yangon, more than 40 percent
increase compared with 2012.
The number of business visi-
tors also surged 32 percent,
while group tours increased
over 8 percent last year.
As the tourists swell in num-
ber, the hotel business also
booms across country. Cur-
rently, 924 hotels are in busi-
ness with 3,500 rooms. Room
charges vary from $50 to $300,
hotel entrepreneurs say.
The tourism industry grabbed
$534 million in 2012 and $900
in 2013 in tourism receipts, ac-
cording to the Ministry of Ho-
tels and Tourism.
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Shwedagon Pagoda, one of Myanmars most famous tourist sites.
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II into Myunmur
Set to Triple
Foreign investment reaches $3.6b in FY2013-14
Phyu Thit Lwin
C
ontracted foreign direct investment (FDI) in My-
unmur reucIed $.6 bIIIIon In LIe hrsL 11 monLIs
(AprII-ebruury) oI LIe hscuI yeur zo1-1q, uc-
cordIng Lo om cIuI hgures.
D In Myunmur umounLed Lo $1.q bIIIIon In LIe hscuI
year 2012-13, which means Myanmar could triple FDI
Inow wIen LIe currenL hscuI hnIsIes In MurcI.
IILy percenL oI LIe LoLuI D owed InLo LIe munu-
facturing sector while 20 percent went to the telecom-
munication sector, said U Aung Naing Oo, director gen-
eral of the Directorate of Investment and Companies
Administration (DICA) under the Ministry of National
Planning and Economic Development.
He said there were no short-term foreign direct in-
vestments in Myanmar, as a new law on FDI requires a
timeframe of at least 20 years.
Myanmar enacted a new foreign investment law in
November 2012, replacing the over-two-decade-old
similar law in a bid to further attract foreign invest-
ment. Myanmar was shunned by the West during the
military junta rule from 1988 to 2010, and economic
sanctions made it harder for the former-pariah state
Lo receIve sIgnIhcunL D. MosL oI LIe suncLIons were
dropped in 2012, as President U Thein Sein embarked
on a series of political and economic reforms since he
ussumed om ce In zo11.
More special economic zones will be built to make it
convenient for foreign investors to invest in the coun-
try, U Aung Naing Oo said.
In 2014-2015 FY, foreign banks will be allowed to op-
erate in Myanmar, which is expected to up the FDI in-
ow more, u CenLruI Bunk spokesperson suId.
Contd. P 9...(FLI)
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
Myanmar Summary
Three Mujor euls Inked ut BIMSTIC
Summit in Myanmar
President calls on regional organisation to promote development
Wai Linn Kyaw
T
hree major deals were
inked during the third
Bay of Bengal Initia-
tive for Multi-sectoral Techni-
cal and Economic Cooperation
(BIMSTEC) Summit held in
Myanmars capital Nay Pyi Taw.
The agreements include two
Memoranda of Association
(MoAs) and one Memorandum
of Understanding (MoU) on
setting up BIMSTECs Secretar-
IuL Omce In DIuku, BungIudesI,
a meteorology and hydrology
department in Noida, India and
cultural department in Thimpu,
Bhutan.
President U Thein Sein called
on the seven-member regional
body to promote development
of the peoples of BIMSTEC,
urgIng IncreusIng eorLs Ior u
stronger cooperation that will
sustain the momentum of the
group.
Our top priority is to allevi-
ate poverty in the region and
improve the quality of life and
well-being of our peoples, he
said.
We are now working togeth-
er in 14 sectors including trade
and investment, technology,
energy, transport and commu-
nIcuLIon, LourIsL, hsIerIes, ug-
riculture, cultural cooperation,
environment and disaster man-
agement, public health, people-
to-people contract, poverty
alleviation, counter-terrorism
and transnational crime, and
climate change.
He said the member states
need to combine their strengths
and resources to engage with
other international bodies in
addressing non-traditional and
transnational challenges of cli-
mate change, natural disasters,
energy and food security.
Through the collective en-
deavours and in a spirit of
equality and partnership, we
will certainly be accelerating
economic growth and social
progress in the sub-region.
The member countries
Bangladesh, Bhutan, India, My-
anmar, Nepal, Sri Lanka and
Thailand also issued a decla-
ration, which called for expe-
dILIng LIe ruLIhcuLIon Ior enLry
into the BIMSTEC Convention
on Cooperation in Combating
International Terrorism.
TIe counLrIes ugreed Lo h-
nalise the draft Agreement on
Trade in Goods with General
Rules of Origin and Product
SpecIhc RuIes und uIso move
towards signing the Agreement
on Dispute Settlement Proce-
dures and the Agreement on
Cooperation and Mutual Assis-
tance in Customs Matters.
The third BIMSTEC summit
and its related meetings were
held from March 1-4. The First
and Second BIMSTEC Sum-
mits were held in Thailand in
2004 and in India in 2008. Al-
though Myanmar has assumed
BIMSTEC Chair since 2009,
there has been a delay in ap-
proval by members for Myan-
mar to host the third Summit.
The 13th ministerial level meet-
ing held in Nay Pyi Taw in 2011
approved Myanmar to host the
third BIMSTEC Summit and re-
lated meetings.
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Cooperation (BIMSTEC) ...
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(L to R) Bangladesh Prime Minister Sheikh Hasina, Bhutan Prime Minister Tshering Tobgay, Indian Prime Minister Manmo-
han Singh, Myanmar President U Thein Sein, Nepals Prime Minister Sushil Koirala, Sri Lankan President Mahinda Raja-
paksa, and Thai Foreign Ministrys Permanent Secretary Sihasak Phuangketkeow pose for group photos during the opening
ceremony of the third Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC) Summit at
Myanmar International Convention Center (MICC) in Nay Pyi Taw.
U
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CA to Invite Tenders to Privutise Locul Airports
Nwe Zin
T
he Department of Civil
Aviation (DCA) in April
will invite tenders from
private companies to upgrade
and operate the countrys local
uIrporLs, u DCA omcIuI suId.
The move comes as the gov-
ernment moves to privatise My-
anmars civil aviation sector to
muke IL more emcIenL und pro-
vide better services.
We will give priority to pri-
vate entrepreneurs who have
experiences in dealing with
airport operation and upgrade
process. The bidding and selec-
tion process will be transpar-
ent, U Win Swe Tun, Deputy
Director of DCA said.
We want to privatise airports
because private companies can
bring in new ideas and modern
technology. When an airport is
state-run, there are limitations.
We cant expand or upgrade as
much as we would like to be-
cause of shortage of funds, he
said.
There are many roles a pri-
vate company can play in an
airport. Businesspeople can
choose the role they are inter-
ested in and can participate.
Foreign companies will not
be able to bid as 100 percent
foreign-invested entities, rather
they have to form joint ventures
with local partners, he said.
In Myanmar, a total of 27 lo-
cal airports serve 33 airlines on
a daily basis.
Myanmar Summary
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Passengers board a plane in Thandwe Airport in Ngapali, Rakhine state.
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Myanmar Summary
Krislite Ties Lp with GI Ior Myunmur Lighting Solotions
S
ingapore-based light-
ing solutions provid-
er Krislite has teamed
up with General Electric
(GE) Lighting in a bid to
oer LIe AmerIcun compu-
nys solutions and products
to projects and developers
in Myanmar.
Through the deal, Kris-
IILe wIII oer LIe IuII runge
of GE Lightings extensive
portfolio of products and
solutions, GE Lighting
said in a statement.
The range of application
includes the latest energy
emcIency ED LecInoIo-
gies for roadway lighting,
commercIuI omces und
IoLeIs, wIIcI wIII oer
better and more reliable
lighting quality while low-
ering the energy cost, GE
said.
Jack Tan, country man-
ager GE Lighting Myan-
mar, said, We hope to
share our knowledge and
expertise in the lighting
industry, help Myanmar
develop their lighting in-
frastructure and increase
Kyaw Min
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From L-R) Jack Tan, country manager, GE Lighting for Singapore, Brunei & Myanmar, and Sims Teo, director, Krislite Pte Ltd, signing the
Myanmar distributor agreement between GE Lighting and Krislite.
LIeIr energy emcIency Lo
aid in the countrys devel-
opment.
We have established a
foothold in Myanmar and
she has become one of our
most important partners
as we stride towards a
brighter future, Tan said.
U Myint Swe, chief min-
ister for Yangon Region
Government, said, Im
sure the collaboration of
these two experts will pro-
duce a fruitful result for
Myanmar and become a
core stimulant that helps
drive the development of
our country.
GE Lighting employs
over 17,000 people in
more than 100 countries.
In the last one and a half
year, GE has made sev-
eral deals in healthcare,
aviation and power gen-
eration sectors with local
companies.
Krislite has market
presence in Singapore,
Myanmar and China
through projects in city
infrastructure, public and
residential sectors.
Myanmar received over $1 billion in FDI in the month
of January alone with Singapore as the top investor, fol-
lowed by Hong Kong, South Korea and Japan. Those
countries invested most in the garment, manufacturing
and beverage distribution sectors, as well as communi-
cation. Januarys bump in FDI was driven by natural
gas, petroleum, hotels and tourism, and marine sector
investments, DICA data shows.
Singaporean companies have been expanding their
investments in sectors such as energy, construction,
hotels and tourism, agriculture and industrial sectors,
making it the largest foreign investor in the country in
2013, according to DICA.
The Myanmar Investment Commission allowed a to-
tal of 13 foreign investments in January. Of those, three
companies are from Singapore and Hong Kong, two
from South Korea and Japan and the rest from China,
Thailand and the United Kingdom.
As of December last year, the total amount of foreign
investment was $44.2 billion.
Hotels and tourism sector is receiving a lot of foreign
investment and we expect this sector to receive more in
LIe comIng hscuI yeur, enLrepreneur U TIunL Zuw suId.
The ministry gave the green light to 39 foreign inves-
tors to work in Myanmars hotel and tourism sector last
year. Those companies invested $1.9 billion in 2013,
DICA data show.
From page ;...(FLI)
Myanmar Summary
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Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Myanmar Summary
Inviron Istublishes
Operutions in Myunmur
Becomes the frst environmental consultancy
E
NVIRON, an internation-
al environmental, health,
safety and sustainabil-
ity consultancy, has established
its operations in Myanmar,
mukIng IL LIe hrsL gIobuI envI-
ronmental consultancy on the
ground In LIe counLry, LIe hrm
announced.
This is a time of great change
in Myanmar, and there is tre-
mendous need for the services
ENVIRON provides in sup-
porting sustainable economic
development, said Stephen
Washburn, ENVIRON Chief
ExecuLIve Om cer.
Our new om ce In Myunmur
allows us to work more closely
with clients and other stake-
holders to make sure these
needs are met.
TIe hrm suId IL sees growIng
demand in Myanmar for envi-
ronmental and social impact
assessments (ESIAs) of pro-
posed development projects, as
well as related services such as
site evaluation and selection,
permitting, water resources, air
quality management, human
health and ecological assess-
ment, and environmental man-
agement systems.
Juliana Ding, managing di-
recLor oI LIe hrm`s AsIun operu-
tions, said: Myanmar has an
emerging regulatory framework
aimed at ensuring environmen-
tal protection and sustainable
development, and being on the
ground is critical to supporting
clients as they establish opera-
tions in Myanmar.
Principal Consultant and Di-
rector Dr Virginia Alzina, based
in Yangon, will manage the My-
anmar operations, whose. Dr
Alzinas expertise includes In-
ternational ESIA practices and
Nwe Zin standards such as the Equator
Principles, the International
Finance Corporation Perfor-
mance Standards and other in-
LernuLIonuI hnuncIuI InsLILuLIon
requirements.
These are exciting times to
be on the ground in Myanmar,
Alzina said.
ENVIRON has over 1,000
consultants operating from
more LIun qo om ces In zz
countries.
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.:.. ..~.._...:...:..,.
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Singupore Consortiom Wins $.g-m
Kyuokphyo SIZ Consoltuncy eul
S
ingapore-based consor-
tium Creative Professional
Groups (CPG) has won a
tender bid to get selected as the
consuILunL hrm Ior LIe Kyuuk-
phyu Special Economic Zone
(SEZ) in Myanmars southeast-
ern Rakhine state.
CPG came out on top out of a
total 17 companies that bid for
the tender worth $2.5 million,
while Netherland-based KPMG
was selected as backup, joint
secretary of the Kyaukphyu SEZ
bid evaluation and awarding
committee, U Aung Kyaw Than,
told a news conference. A total
of 31 companies expressed in-
terest to take part in the bid in
LIe hrsL pIuse oI LIe Lender.
The estimated expenditure
for Kyaukphyu SEZ is about
$277 million, bid evaluation
and awarding committee secre-
tary U Myint Thein said, adding
that the consultant will receive
5 percent of the estimated ex-
penditure according to interna-
Zayar Phyo tional practice.
CPG will provide consultancy
services regarding land issues,
deep seu porL consLrucLIon, h-
nance and project programs
and calling tenders to recruit
the SEZ developer.
The CPG consortium com-
prIses hve compunIes IncIudIng
DTZ, G Maps and PM Link, U
Aung Kyaw Than said.
Kyaukphyu SEZ is not a state
project but a private one. The
deep sea port here will facilitate
ocean liners and there are a lot of
opportunities as this SEZ is close
to big markets of India and Chi-
na, Deputy Minister for Finance
U Maung Maung Thein said.
The SEZ is being developed
In Iour sLuges, wIIIe LIe hrsL
one a conceptual plan have
been hnuIIsed wILI InpuL Irom
economists, businesspeople and
Kyaukphyu locals. Selecting the
consultant was the second stage,
while the third one involves invit-
ing tenders for a developer. The
fourth stage will see the construc-
tion of the 1,000-acre SEZ.
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Myanmar Summary
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11
Myanmar Summary
Myanmar Summary
Oops, Congress Asked to Iix
Slip-Lp in Myunmur Aid Bill
T
he Obama administration
Is uskIng Congress Lo hx u
2012 bill that left a World
Bank agency out of a list of 12
InLernuLIonuI hnuncIuI InsLILu-
tions that could receive US sup-
port to promote development in
Myanmar.
The Multilateral Investment
Guarantee Agency (MIGA) pro-
motes foreign direct investment
in emerging markets by pro-
tecting private investors from
various forms of political risk.
Because of this technical
problem, the United States is
still required to oppose guar-
antees provided by MIGA for
private investment in Burma,
the Obama administration said
in its budget request submitted
IusL week Lo Congress Ior hscuI
2015, which begins October 1.
With only 130 employees,
MIGA is one of the smallest
institutions within the World
Bank. More than 10,000 peo-
ple work for the main World
Bank unit and over 3,000 peo-
ple at the International Finance
Corporation, its private sector
lending arm.
According to the US budget
request, several MIGA projects
are planned for Myanmar that
the United States would be
forced to oppose because of the
error.
Anna Yukhananov Congress for years banned
the United States from backing
any development loans to the
Southeast Asian nation, which
was ruled by a military junta
accused of human rights viola-
tions.
BuL uILer hve decudes In pow-
er, the military government
stepped aside and the country
launched a series of economic
and political reforms, prompt-
ing a rapid rapprochement with
Washington. Reuters
Nielsen und MMR Join Hunds
to Tup Myunmur Murket
A
merican information
and measurement com-
pany Nielsen Holdings
NV has formed a joint venture
wILI IocuI reseurcI hrm Myun-
mar Marketing Research & De-
velopment Co Ltd (MMRD) in a
bid to provide their clients with
Myanmar marketplace and
consumer behavior informa-
tion, the companies announced.
The joint venture entity,
Nielsen MMRD, will see the two
organisations combine their ca-
pabilities to help companies
which are established in Myan-
mar or have plans to enter the
market to understand the mar-
ket and consumer dynamics,
the companies said in a joint
statement.
With a population of over 56
million, Myanmar is the second
largest country in ASEAN and
one of the last remaining un-
tapped frontiers for our clients,
and we look forward to working
closely with the MMRD team to
help our combined client base
gain the deepest insight into
Myanmars marketplace and
consumers, Suresh Ramal-
ingam, Nielsens Managing Di-
rector of Thailand and Vietnam
Cluster.
We are excited to begin this
collaboration with MMRD, a
highly-respected and well-es-
LubIIsIed murkeL reseurcI hrm
Pann Nu in Myanmar.
U Moe Kyaw, Nielsen Senior
Advisor and Managing Director
oI MMRD, suId IIs hrm vIews
the joint venture arrangement
as a pivotal opportunity to re-
alise its vision to deliver wider
international exposure to its
clients while broadening the
depth of its services.
Weve seen a substantial in-
crease in demand for insights
on Myanmar, evidenced by the
88.5 percent net growth in mar-
ket research reported by ESO-
MAR, and we are now much
better-positioned to help our
clients here and abroad to un-
derstand our unique market-
place.
U Moe Kyaw said recent po-
litical reforms coupled with a
large, young population and
healthy economic outlook make
Myanmar a highly attractive
market.
The market is shifting rap-
idly, however, with burgeon-
ing media usage and evolving
purchasing behaviour. Staying
abreast of changing consumer
habits will be a critical success
factor for local and multina-
tional companies alike in the
years ahead.
Nielsen has a presence in ap-
proximately 100 countries,
with headquarters in New York,
USA, and Diemen, the Nether-
lands. Nielsen is active in over
100 countries and employs ap-
proximately 35,000 people
worldwide, with total revenues
of $5.7 billion in 2013.
MMRD was established in
1qqz und wus Myunmur`s hrsL
market research agency. It has
250 research professionals in
1 regIonuI omces LIrougIouL
the country.
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. . .~.,. . , ._e. ..: Nielsen
Holdings NV ._ _.,.:.-
_._ ~ .. .~.,. . , .~. . _e. ._
Myanmar Marketing Research &
Development Co Ltd (MMRD) .
....|._ _.,.:.-...~~~.,
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~.,.:.~ ,:.._..:..|~.
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._e .q._.
_., .:. e _e .~ .~~ .q.~.:~
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~q:.~ _:.q.~e ~._ ..:.~
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Multilateral Investment Guarantee
Agency (MIGA). : ~. .|~e ~._ .
.:q.~ .|~.:_...q ~,q.,
. ._ ~~ ~ ~..q ~, ~. .q~
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..: ._. _., .:. ~:. e _e .~ .~~
.q.~.:~ ~. .:....q:~ ~. ,
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_.,.:.~~~ MIGA . ..
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Nielsen and MMRD aim to provide clients with Myanmar marketplace and consumer behaviour information.
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From page ... (Sustaining)
From page ... (Sustaining)
Given high reliance on the abundant natural resources and low productivity in agriculture, Myanmars economy is vulnerable
to potential shocks.
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While it does not directly threaten
the growth momentum or the ongoing reforms,
it does have potential to dampen investor
interest in the West, shift resources from
economic development to political consolidation
and aggravate domestic divisions.
, .. . .. ._ _e. ._ ... ~ .. , .. ,
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foreign investment and strong
commodity exports, it is on
track to grow 6.9 percent in the
medium-term.
As it seeks to diversify its for-
eign trade and investment, Nay
Pyi Taw is amidst a delicate bal-
ancing act between Chinese and
Western capital. To succeed, it
musL hnd wuys Lo proLecL boLI
its old and new investors. Do-
mestically, the critical challenge
will be to use these resources to
diversify the countrys nascent
industrial structure.
The emergence of Myanmar
has often been compared with
that of Asias tiger economies in
the 1960s and 1970s, and China
in the 1980s. There is a major
dIerence, Iowever. DurIng LIe
past decades, emerging econo-
mIes In AsIu benehLed Irom LIe
booming global integration. To-
day, the global landscape is far
more challenging.
True, recently global activity
has picked up as growth pros-
pecLs grew hrmer In LIe second
half of 2013, thanks to the lin-
gering recovery in the advanced
economies. But in these nations,
growth remains policy-driven
and is not yet self-sustained.
While the US has recovered
fastest, its exit from the mon-
etary stimulus is likely to take
until the end of 2010s. Europe
will cope with policy-driven
support well into the 2020s.
And Japan hopes to overcome
its two lost decades with a
bold reform gamble.
urLIer, u new bouL oI hnun-
cial volatility has recently af-
fected certain emerging and ad-
vanced economies, as markets
reassess their fundamentals.
This volatility began to rise last
IuII, InLensIhed In December,
when the US Fed started its ta-
pering, and peaked in January
after the Fed continued to taper.
Given high reliance on the
abundant natural resources and
low productivity in agriculture,
Myanmars economy is vulner-
able to potential shocks, how-
ever.
Defuse r i sks
Lets focus on the common
denominators in those fragile
emerging economies that were
penalized the most. Typically,
muny Iud hscuI und currency
uccounL dehcILs, excessIve In-
uLIon, IuIIIng growLI ruLes und
persistent, long-standing politi-
cal uncertainty fuelled by im-
pending elections.
Unlike India, Indonesia, Bra-
zil, Turkey or South Africa, My-
anmar has not been adversely
uecLed by LIe recenL voIuLIIILy.
On the contrary, the outlook
is positive and the economys
growth could rise to 6.9 percent
in the medium-term, as long as
the reform momentum will pre-
vail.
While reforms do protect My-
anmar in the long-term, the
short-term challenges are a dif-
ferent story.
After all, while Myanmars
budgeL dehcIL decreused Lo .;
percent of the GDP, the currency
uccounL dehcIL Increused Lo q.q
percent of the GDP in 2012/13.
n LIe pusL, InuLIon Ius IuunL-
ed the country, but was barely
2.8 percent in 2012/13; howev-
er, IL Ius rIsen sIgnIhcunLIy, on
the back of food prices, housing
rental costs and fuel.
So economic risks exist, but
remain subdued as long as
there is a solid growth momen-
tum. What about political risk?
The next general election is
due by November 2015. While
the National League for De-
mocracy has said that it would
participate in the election even
without a constitutional amend-
ment, its leader Aung San Suu
Kyi has vowed to challenge the
old charter that blocks anyone
whose spouse or children are
overseas citizens from leading
the country.
Political risks do exist and
may intensify, but as long as
they will not cause political
fragmentation, reform momen-
tum can be sustained.
However, Myanmars internal
ethnic and religious friction is
u dIerenL sLory. WIIIe IL does
not directly threaten the growth
momentum or the ongoing re-
forms, it does have potential to
dampen investor interest in the
West, shift resources from eco-
nomic development to political
consolidation and aggravate
domestic divisions.
Towar d deci si ve and
acceler ated pr ogr ess
Further, not all risks are in-
ternal. In any major crisis,
transmission channels play a
central role. Even if progress
will prevail internally, but fails
externally, Myanmar would be
uecLed, due Lo hnuncIuI, Lrude
and investment transmission
channels.
In this case, there are several
potentially negative scenarios,
including a stalled US recovery,
a new bout of uncertainty in
Europe, a possible failure of re-
forms in Japan, an unanticipat-
ed slowdown in China, or fur-
ther plunge of the commodities.
The only way for Myanmar
to move ahead is decisive and
accelerated progress. That re-
quires at least the following:
A strong reform momentum
to avoid growth reversals, while
building resilient institutions
and deepening the rule of law;
Inclusive economic growth
to ensure that catch-up growth
wIII benehL uII segmenLs oI LIe
society in the entire country;
Reconciliation to overcome
the kind of ethnic friction and
religious violence, which were
initiated during colonialism,
but which have been re-ignited
by an impending sense of na-
tion-hood.
Adequate political consen-
sus among the large parties to
support enforcement in order
to enable change, even when
it challenges entrenched inter-
ests.
Dr Dan Steinbock is the re-
search director of international
business at the India, China and
America Institute (USA) and
a visiting fellow at the Shang-
hai Institutes for International
Studies (China) and EU Center
(Singapore). For more, please
tisit: http:,,uuu.digerence-
group.net.
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March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
Thui PTTIP Cots g-Yeur Investment Bodget, Sules Iorecust
T
hailands PTT Explora-
tion and Production Pcl
suId IL Ius cuL ILs hve-yeur
investment budget by 8 percent
and 2014 petroleum sales tar-
get by 3 percent due to lower
ouLpuL Irom un AusLruIIun heId
and a delay in the startup of a
gus heId In Myunmur.
The countrys top oil and gas
explorer aimed to spend $25
billion during 2014-2018, lower
than the previously announced
$27.5 billion after an asset swap
in the Canadian KKD oilsands
project with Norways Statoil.
We dont have to invest more
after the restructuring in the
KKD projecL. TIuL wIII uecL
sales volume too, Yongyos
Krongphanich, senior vice pres-
IdenL Ior hnunce, LoId reporLers.
Norways Statoil is stepping
up its exposure to Canadian oil-
sands, paying about $200 mil-
lion to take full control of some
assets it had previously shared
with the Thai explorer.
PTTEP now expects 2014 pe-
troleum sales of 325,000 bar-
rels of oil equivalent per day
(BOEPD), versus an earlier
forecast of 337,000 BOEPD, as
a cyclone in Australia cut out-
puL uL LIe MonLuru heId Lo be-
low its 30,000 barrels per day
(bpd) target, Yongyos said.
The impact from weather
conditions will cut output by
3,000-4,000 bpd, he said.
The sales forecast represented
Pisit Changplayngam a 10 percent increase from 2013
when the company cut it sales
target twice due to repeated de-
Iuys In LIe MonLuru heId.
He also said the startup of
ZuwLIku nuLuruI gus heId In
Myanmar will be delayed by a
month and the new schedule
will be in the second quarter of
this year.
TIe ugsIIp compuny oI sLuLe-
controlled PTT Pcl, ranked
among Asias top 10 explorers,
is scouting for oil and gas assets
to boost energy security in fast-
growing Thailand. Southeast
Asias second-biggest economy
relies on natural gas to generate
almost 70 percent of its electric-
ity.
n sepuruLe brIehng, PTT suId
its 2014 revenue is expected to
rise 4 percent to 2.97 trillion
baht ($91.41 billion) due to
higher oil and gas demand in
line with the countrys econom-
ic growth.
The forecast was based on
the projection of average Dubai
crude prices at $105 bpd, slight-
ly lower than last year, Phichin
Aphiwantanaporn, vice presi-
dent for investor relations, told
reporters.
The energy giant also aims to
IIsL sIures oI oII rehnery SLur
PeLroIeum RehnIng Co (SPRC)
and its power unit, Global
Power Synergy Co, on the Thai
bourse in the second half of this
year, Phichin said.
SPRC, 64-percent owned by
oil giant Chevron Corp, oper-
ates a 160,000 barrel-per-day
rehnery In eusLern Ruyong
province.
PTT, which scaled back
spending plans for last year,
has long planned to dilute its
36 percent holding in SPRC,
but the listing has been delayed
for several years as negotiations
with Chevron foundered on dif-
ferences over details.
Phichin also said PTT was ex-
pected to post losses of about
30 billion baht from the sub-
sidies on natural gas vehicles
(NGV) und IIquehed peLroIeum
gas (LPG) in 2014 due mainly
to a limited number of NGV ser-
vice stations. Reuters
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Yetagun offshore gaseId in Myanmar where ThaiIand`s PTT ExpIoration and Production PcI has shares. The rm said it has
cut its ve-year investment budget by 8 percent due to Iower output from an AustraIian eId and a deIay in the startup of a
gas eId in Myanmar.
F
ile
s
Nepul PM Sets An Aostere Ixumple
His BIMSTEC team had seven ofcials Indias Manmohan Singh went with over 100 delegates
F
lying in to Myanmars
capital on a scheduled
IgIL even us IIs peers
arrived on special aircraft, Ne-
pals newly appointed Prime
Minister Sushil Koirala held
out a quiet lesson in austerity
Praveen Swami to regional leaders who are at-
tending a seven-nation summit
in Myanmar.
Koirala, Nepali diplomatic
sources suId, ew busIness cIuss
from Kathmandu to Bangkok
on a scheduled Thai airways
IgIL und LIen cuugIL connecL-
Ing IgILs Lo Yungon und Nuy
Pyi Daw after an overnight layo-
ver.
His delegation is made up
jusL seven omcIuIs - In sLurk
contrast with the over 100 dele-
guLes, sLu und medIu wIo Iuve
accompanied Prime Minister
Manmohan Singh to the sum-
mit. Singh and his entourage,
which includes 37 journalists,
ew In on u BoeIng ;q; cIur-
tered from Air India.
Koirala, who spent three years
in jail in India decades ago on
charges of hijacking a plane car-
rying cash to fund pro-democ-
racy politics in Nepal, is known
for his austere lifestyle.
President Mahinda Rajapaksa
also arrived in a chartered air-
craft, a Sri Lankan airlines Air-
bus A340. Rajapaksas delega-
tion was made up of 71 people.
Bangladeshs Sheikh Hasina
brought an entourage of 37, in-
cIudIng hve IndependenL jour-
nalists.
Dont give people ideas,
joked ExLernuI AuIrs MInIsLer
Salman Khurshid, responding
to Nepali media reports that
incorrectly claimed that Koirala
had travelled economy class.
Theyll expect all of us to do
the same.
KIursIId, Iowever, ew busI-
ness class to Nay Pyi Taw, like
Koirala.
Large expenses by leaders on
foreign tours have become a po-
litically volatile issue in many
cash-strapped countries. Last
year, revelations that Singh
had spent Rs640 crore ($104
million) on foreign tours since
zooq generuLed u Iurge ow oI
critical media comment.
The Hindu
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Myanmar President U Thein Sein (R) shakes hands with Nepals Prime Minister
Sushil Koirala during the opening ceremony of the third Bay of Bengal Initiative
for Multi-sectoral Technical and Economic Cooperation (BIMSTEC) Summit at My-
anmar International Convention Center (MICC) in Nay Pyi Taw.
U
A
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in
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u
a
Myanmar Summary
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March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
More S'pore Iirms Set Sights on SI Asiu: LOB
T
he expansion of Singa-
pore hrms ucross SouLI-
east Asia continues to
gain pace, with activities clus-
tered in Malaysia and Indone-
sia, while Myanmar beckons as
the next frontier for business
opportunities.
This comes as more regional
and international companies
are stepping up cross-border
expansion in Asia to ride on the
regions rapid growth, said Sam
Cheong, head of UOBs Group
Foreign Direct Investment
(FDI) Advisory Unit.
For Singapore companies,
Indonesia remains a hot spot
(for overseas expansion)
And, of course, Malaysia, where
businesses are still looking at
Iskandar as one of their logis-
tics hubs due to the cost factor,
he added.
Another hot spot is Myan-
mar, where we see a lot of inter-
est from FDI, given its political
Wong Wei Han and economic transformation
in the last two years.
Cheong made this comment as
he highlighted the role of Singa-
pore hrms In drIvIng LIe growLI
of UOBs FDI advisory units,
which provide one-stop bank-
ing services such as corporate
loans and foreign-exchange set-
tlements for overseas compa-
nies setting up shop in markets
abroad.
We see more Singaporean
companies expanding their op-
erations overseas. Over the last
year, I have seen about a 30 per-
cenL Increuse In IocuI hrms LIuL
use our FDI advisory units for
overseas expansion, he said.
These include companies
that are expanding into the
region to mitigate the labour
shortage in Singapore, while
breaking into regional markets
that have a fast-growing middle
class.
As a result, demand from
SIngupore hrms currenLIy uc-
counts for about a quarter of the
cross-border loans facilitated
by UOBs FDI advisory units,
which amount to double-digit
billions of dollars, said the
bank.
The growth experienced by
UOB on LIIs IronL purLIy reecLs
the governments ongoing push
for economic restructuring,
which has resulted in domestic
cost and manpower pressures
on businesses, forcing them to
look overseas for growth.
One of the popular destina-
tions is Myanmar, where Sin-
gupore compunIes ure hrmIy es-
tablished in the hospitality and
infrastructure sectors, among
oLIers. n LIe hrsL IuII oI IusL
year, the Republics trade with
Myanmar grew 53 percent on-
year to $1.1 billion, data from
International Enterprise Singa-
pore shows.
As SIngupore hrms expund
abroad, they are joining the
ranks of regional and global
businesses growing across Asia,
which attracted up to $406 bil-
lion of foreign investment last
year, of which $127 billion went
InLo CIInu, UnILed NuLIons hg-
ures show.
Meanwhile, in the Republic,
wIIcI Is u key Lreusury und h-
nuncIng Iub Ior IoreIgn hrms
in the region, around half of
LIe D ows comIng LIrougI
UOBs advisory unit are from
Chinese companies, the banks
data shows. Southeast Asian
hrms Luke up unoLIer o per-
cent, while Western companies
account for 20 percent.
Cheong said these regional
activities have enabled UOB to
double its cross-border loans
ahead of a three-year target that
was set in June 2011, when the
bank opened its FDI advisory
services in Singapore.
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Myanmar Summary
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
Chinu Signuls Iocos on ReIorms And Leuner, Cleuner Growth
China targets 2014 economic growth of about 7.5pc; Eyes infation target of around 3.5pc
Kevin Yao and
Xiaoyi Shao
C
hina sent its strongest
signal yet that its days
of chasing breakneck
economic growth were over,
promising to wage a war on
pollution and reduce the pace
of investment to a decade-low
as it pursues more sustainable
expansion.
In a State of the Union style
address to an annual parliament
meeting that began last week,
Premier Li Keqiang said China
aimed to expand its economy by
7.5 percent this year, the high-
est among the worlds major
powers, although he stressed
that growth would not get in the
way of reforms.
In carefully crafted language
that suggested Beijing had
thought hard about leaving the
forecast unchanged from last
year, Li said the worlds second-
largest economy will pursue re-
Iorms sLreLcIIng Irom hnunce
to the environment, even as it
seeks to create jobs and wealth.
After 30 years of red-hot dou-
ble-digit growth that has lifted
millions out of poverty but also
polluted the countrys air and
water and saddled the nation
with ominous debt levels, China
wants to change tack and rebal-
ance its economy.
Reform is the top priority for
the government, Li told around
3,000 hand-picked delegates in
IIs hrsL purIIumenLury uddress
in a cavernous meeting hall in
central Beijing.
We must have the mettle
Lo hgIL on und breuk menLuI
shackles to deepen reforms on
all fronts.
Idle factories will be shut, pri-
vate investment encouraged,
government red-tape cut and
work on a new environmental
protection tax speeded up to
create a greener economy pow-
ered by consumption rather
than investment, Li said.
To aid the transformation,
Chinas economic planner, the
National Development and Re-
form Commission, told parlia-
ment the government will target
1;. percenL growLI In hxed-
asset investment this year, the
slowest in 12 years.
Investment is the largest
driver of Chinas economy and
accounted for over half of last
years 7.7 percent growth by ris-
ing 19.6 percent, above an 18
percent target.
Asian currencies rose on the
news that Chinas $9.4 trillion
economy will stay on an even
keel after its wobbly start for
the year. Investors had been
worried by speculation that
China may announce a cut in its
growth target this week.
Given that GDP growth is
expected to be 7.5 percent for
longer, we see this target as
supportive for the Asian region,
trade, and for commodity cur-
rencies, said Annette Beacher,
an analyst at TD Securities in
Singapore.
Others were less optimistic.
By declining to lower its 7.5
percent growth forecast, China
is betraying its refusal to break
with the past, some analysts
said. That means Beijing may
not be as radical in reforms as
hoped.
Its a sign that maybe they
are not going to tackle credit
growth as quickly as we thought
they might, said Julian Evans-
Pritchard, an economist at Cap-
ital Economics in Singapore.
Reuters
Indonesiun Consomers Less Optimistic on
Bosiness Conditions
I
ndonesias consumers were less optimistic in Feb-
ruary, expecting a slowdown in business conditions
over the next six months, a central bank survey
showed last week.
TIe consumer conhdence Index eused Lo 116.z Irom
116.7 in the previous reading. A reading above 100 indi-
cates that consumers in general are optimistic.
But the Bank Indonesia survey said that optimism
over the economy, compared with the last six months,
as well as manageable price expectations had helped
keep consumer conhdence reIuLIveIy sLrong.
Prices pressures are expected to ease in the next three
months, despite a general election in April, then rise
during the Muslim fasting month in July, after which
they will ease again.
AnnuuI InuLIon In ebruury wus ;.; percenL, eus-
ing compared with 8.22 percent in the previous month.
Core InuLIon edged up Lo q.; percenL, spurred by goId
and processed food.Bank Indonesia reported annual
loan growth in December of 21.4 percent, slowing from
Januarys 21.9 percent.The central bank expects annual
InuLIon Lo be uround .-. percenL In zo1q. Reuters
Nilufar Rizki
Myanmar Summary
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Keqiang ~ ~, ~ . ~.,_e e.
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-e~- ..~..~q .q._.
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~~'. . ~~'. . ~...:.._~:. .q._. e.,.~,.
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Smog can be seen over new apartment buildings where the local government built homes for former miners and farmers as
part of an urbanisation programme in Mentougou district, suburb of Beijing.
K
im
K
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/R
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rs
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
16
Myanmar Summary
Myanmar Summary
rooght Withers Aostruliu's Agricoltorul Ootpot
Record cattle slaughter rates fuel 2013/14 beef imports
D
rought conditions
across Australias
east coast will cut
production of key agricul-
tural commodities such as
wheat and beef next sea-
son and reduce exports,
the governments chief
commodities forecaster
said.
The current season
could see Australia, the
worlds third-largest
wheat exporter, produce a
bumper wheat crop, with
increased plantings and if
Colin Packham late season rains materi-
alise.
However, forecasts of
a return of dry El Nino
weather conditions across
the key farming states
of Queensland and New
South Wales later in 2014
mean the prospects for
agricultural production
remain uncertain.
Global markets will
be watching forecasts of
Australias crop given
concerns over Ukraine
tensions disrupting sup-
ply from the Black Sea
area, one of the worlds
key grain exporting re-
gions.
Australian wheat pro-
duction is forecast to fall
8.2 percent to 24.795 mil-
lion in the 2014/15 sea-
son from 27.013 million
tonnes this year as dry
conditions curb yields,
the Australian Bureau of
Agricultural, Resource
Economics and Sciences
(ABARES) said.
ABARES said the de-
cline in production will
come despite a 2 percent
increase in acreage plant-
ed as yields return to his-
torical average levels due
to dry conditions.
The yields assumptions
are based on a break in the
drought, but with fore-
casts for more dry condi-
tions across Australias
east coast, the commodity
forecaster acknowledged
further cuts to yields are
possible.
L Is very dImcuIL Lo
forecast at the moment,
it is not just the amount
of rain, but also the tim-
ing ... you dont need huge
amounts of rain in the
growth period, it just has
to come at the right time,
said Jammie Penm, chief
commodity forecaster at
ABARES, referring to un-
certainty over yields in
2014/15.
Despite the dry condi-
tions, this seasons Aus-
tralian wheat harvest
could be the countrys
sixth-largest crop on re-
cord. Such a bumper crop
could drag on rising US
wheat prices.
Drought impacts beef
exports
Australias drought was
also resulting in record
cattle slaughter rates,
prompting ABARES to up
its forecast for 2013/14
beef exports to 1.15 mil-
lion tonnes.
Parts of Queensland,
Australias largest cattle
producing state and home
to half the national herd,
have recorded the driest
two years on record.
ABARES said Austral-
ias national herd will fall
to 27.1 million head, the
lowest since the 2009/10
season, a year also im-
pacted by drought.
But the following sea-
son, 2014/15, ABARES,
based on its assumption
of a break in the drought,
is forecasting cattle farm-
ers will begin to rebuild
stock, resulting in a fall
in beef exports of nearly 7
percent.
If the drought breaks,
exports would fall to 1.04
million tonnes, cement-
ing Australias position as
the worlds third-largest
beef exporter, ABARES
said.
However, with the Aus-
tralian Bureau of Me-
teorology calling for a
continuation of hot, dry
conditions in Queens-
land, cattle slaughter
rates could continue at
near record pace, limiting
any slowing of exports.
Reuters
Globul Smurtphone Growth to Iull
Shurply in o1q: IC
G
rowth in global
smartphone ship-
ments will fall
sharply this year and keep
slowing through 2018,
with average prices drop-
pIng sIgnIhcunLIy us de-
mand shifts to China and
other developing coun-
tries, according to market
reseurcI hrm DC.
Annual growth in 2014
is expected to be 19.3 per-
cent and then decline to
6.2 percent in 2018, IDC
said in a report. That fol-
lows a 39.2 percent jump
in 2013 when smart-
phone shipments topped
1 bIIIIon unILs Ior LIe hrsL
time.
The forecast reinforces
concerns on Wall Street
that the explosion in
Noel Randewich smartphones that be-
gan with Apples iPhone
in 2007 is coming to an
end, at least in the Unit-
ed States and other de-
veloped countries where
consumers favour pricey,
top-tier handsets.
Smartphone growth in
North America and Eu-
rope is expected to shrink
to single digits and Japan
could even see a slight
slowdown in shipments
in the next few years, IDC
said.
Manufacturers are in-
creasingly focusing on
China where many con-
sumers are upgrading
from basic cellphones to
smartphones selling for
under $300.
New markets for
growLI brIng dIerenL
rules to play by and pre-
mium will not be a ma-
jor factor in the regions
driving overall market
growth, IDC analyst
Ryan Reith said in a re-
port.
The average selling price
for smarpthones last year
was $335, already far be-
Iow ugsIIp devIces IIke
the iPhone 5S or Samsung
Galaxy S4, and will fall to
$260 by 2018, IDC said.
Reuters
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Australian Prime Minister Tony Abbott (R) meets with outback graziers Phillip and Di Ridge of their
property named Jandra near Bourke in western New South Wales. Abbott was taking part in a drought
tour with Australian Agriculture minister Barnaby Joyce. A drought in Australia has forced ranchers in
the worlds third-biggest beef exporter to cull cows, stoking fears of a global beef shortage in coming
years with the U.S. herd at its lowest in six decades.
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Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
on't Tuke Iuster LS Growth Ior Grunted:
Iormer Treusory ChieI
Martin Dokoupil &
Stanley Carvalho
F
inancial markets should
not take an acceleration
of US economic growth
this year for granted, former US
Treasury Secretary Lawrence
Summers said last week.
Many of us hoped that this
will be the year (of faster US
growth). But we cannot take it
for granted yet, Summers, also
a former top aide to President
Barack Obama, said in a speech
uL u hnuncIuI conIerence In LIe
United Arab Emirates capital.
The last couple of months
data for the US were not what
we wanted them to be. Partly
or almost everything is perhaps
due to weather, but we cannot
entirely count on it, he said.
Summers, now an economist
at Harvard University, with-
drew last September from the
nomination race to replace for-
mer Federal Reserve Chairman
Ben Bernanke, whose term ex-
pired in January, opening the
door for Janet Yellen.
He said the fracking revolution
in the United States, which is al-
lowing it to tap unconventional
sources of oil and gas, was a big
positive for the US economy.
But he added, Risks in the US
are much more on the side of
deuLIon und sLugnuLIon ruLIer
LIun InuLIon und overIeuLIng.
Ultra-loose monetary policy,
known as quantitative easing,
Myanmar Summary
Iucebook's Sheryl Sundberg And
The Rise OI Women Billionuires
I
n the world of self-made,
hoodie-wearing technology
billionaires, Sheryl Sand-
berg Ius puIIed o someLIIng
improbable: She has joined
their ranks without founding
her own company or writing a
single line of code.
The fact that Facebooks chief
operuLIng omcer Is u womun Is
incidental, of course, but its
also noteworthy: Of the 268
newcomers to the 2014 Forbes
Billionaires list, 42 are wom-
en a single-year record and,
more notably, the highest-ever
percentage of newcomers (and
of women billionaires overall
172 out of 1,645 ).
Thats progress. But only a
bit. Only 32 billionaire women
or 1.9 percent of all the globes
billionaires had a meaning-
ful hand in building their own
fortunes, as opposed to inher-
iting one from a parent or hus-
band. Sandberg joins the dozen
women, including Spanxs Sara
Blakely, fashion designer Tory
Burch and Oprah Winfrey, who
accomplished this feat without
Connie Guglielmo
Facebook COO Sheryl Sandberg has parlayed her stints at
Facebook and Google into a personal fortune worth more
than $1 billion.
M
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the help of a husband or sibling.
And only she and Meg Whit-
man, who worked at Hasbro
and FTD before joining eBay,
accomplished this feat as hired
hands of tech companies.
Thus Sandbergs perspective,
distilled in her bestseller, Lean
In, seems doubly apt. In a re-
cent interview with Forbes she
said she was real optimistic
about the dialogue and debate
generated by her book, which
exhorts professional women to
pour more energy
into their careers,
stop tolerating
that high achiev-
ers are termed
bossy while their
male counterparts
are praised as ag-
gressive, and pick
partners who will
share in parenting
and household du-
ties.
Businesses are
going to care about
diversity not be-
cause they want
to do good in the
world, says Sand-
berg. Theyre going to care
about diversity if its going to
change their bottom line.
She says that she hosts pri-
vate Lean In Circles and, in
her book, advocates for others
to do the same. Over dinner at
her home, other leading wom-
en hear from special guests.
One speaker: Cisco CEO John
Chambers. What he under-
stood is that it wasnt about
having women in your compa-
ny but about having women in
leadership roles. If you have
the best talent, youre going to
have the best performance.
That presumably will translate
to more women like Sandberg
sIuLLerIng LIe Len-hgure ceII-
ing.
In her book, Sandberg de-
tailed her intense negotiations
with Facebook CEO Mark Zuck-
erberg as she was being courted
for the companys chief oper-
uLIng omcer posILIon. couId
play hardball, she wrote with
regurds Lo LIe oer. More LIun
half a decade after accepting
the COO gig, Sandberg is likely
thankful she stuck to her guns
during negotiations. She is now
one of the worlds youngest
self-made women billionaires.
With Facebooks share prices
up more than 130 percent in the
last 12 months as of mid-Feb
2014, the mother of two appears
on the Billionaires list for the
hrsL LIme, IurgeIy due Lo Ier 1z
million shares in the social net-
workIng hrm. A Iormer GoogIe
executive, she was wooed to
Facebook by Zuckerberg in
2007 to provide a sense of or-
der Lo LIe edgIIng sLurLup run
by college dropouts. Shes since
become a foil for Zuckerberg,
pushing the company toward
strong earnings performances
with improvements in mobile
strategy. In addition to her role
at Facebook, Sandberg also sits
on the board at the Walt Disney
Co. Forbes
Myanmar Summary
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Former US Secretary of the Treasury and Harvard Universitys Lawrence Summers delivers remarks at the National Associa-
tion for Business Economics Policy Conference in Arlington, Virginia.
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has diminished returns in the
economy and there are con-
cerns about the way the impact
of low interest rates is being
transmitted through the econo-
my, Summers said.
He added that the US stock
market, which rose sharply last
year, did not look extremely
expensive but was also not out-
standingly cheap.
Its probably a relatively good
time to buy US real estate as the
market has turned the corner
and growing, Summers said.
Reuters
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
MARC Project to Provide
$ Million to Myunmur MIIs
F
ive Myanmar-based civil
society organisations will
soon begin lending more
than $3 million to farmers and
women in rural and isolated
communities, US-based micro-
hnunce NGO PucL suId.
LIFT, a multi-donor fund
managed by the United Nations
Omce Ior ProjecL ServIces Is pro-
vIdIng hnuncIuI ussIsLunce Ior
the initiative, while the training
and counsel for the project is
provided by Pact Global Micro-
hnunce und (PGM), Myun-
mur`s IurgesL nonprohL Iender.
This may be the largest
IuuncI oI mIcrohnunce Iend-
Ing by IocuI nonprohL orgunIsu-
tions to date in Myanmar, said
Fahmid Bhuiya, PGMFs chief
operuLIng omcer.
Were proud to be work-
ing with our new partners and
LIFT to improve the livelihoods
and food security of as many as
45,000 families in places where
there is no access to credit but
an abundance of need for it.
The project Myanmar Ac-
cess to Rural Credit (MARC)
will enable nine new micro-
hnunce InsLILuLIons Lo muke
about 27,000 agricultural loans
and nearly 18,000 additional
Iouns specIhcuIIy LurgeLed Lo
women to let them expand non-
agricultural activities or start
new enterprises, Pact said. It
will cover about 900 villages in
the Delta and Dry Zone regions.
On December zq, LIe hrsL
Lwo oI LIe hve new IocuI Iend-
ers formalised documents that
allowed Pact to transfer funds
to them. Next year, Pact will
work with another four com-
munity groups to qualify them
us mIcrohnunce Ienders under
Myunmur`s new mIcrohnunce
regulations, the lender said.
We know the hard-working
people in these communities
well, said U Cin Khan Lian, di-
rector of Ar Yone Oo, Social De-
velopment Association, an or-
ganisation that has helped the
poor in Myanmars Delta region
since 2008 and one of dozens
that applied to Pact to become
u mIcrohnunce Iender.
We have always wanted to
IeIp LIem wILI smuII, uord-
able loans that could be used to
grow their incomes and better
feed their families, but we never
knew how or had the funds.
For the past several months,
PGMF worked with each of the
lenders-to-be to improve their
technical and organisational ca-
pucILy Lo oer mIcrocredIL ser-
vices, to ensure their sustain-
Phyu Thit Lwin
ability as they grow their loan
portfolios, Pact said.
TIese ure hve very sLrong
organisations who are no stran-
gers to the communities theyll
be serving with microloans,
said MARC project manager U
Kyi Thar.
Were all anxious to see them
help transform the villages they
are a part of.
PucL GIobuI MIcrohnunce`s
parent organisation, Pact, is the
longest-serving international
NGO still active in Myanmar to-
duy, servIng ILs hrsL borrowers
in the country in 1997. In 2012,
uILer Myunmur pussed ILs hrsL
Iuw uddressIng mIcrohnunce,
Pact formed PGMF to allow it
to expand its services. Current-
ly, the lender serves more than
500,000 borrowers 99 per-
cent of them women through-
out Myanmar.
The demand for small busi-
ness loans in Myanmar is
booming as the countrys econ-
omy grows. The United Nations
Development Program (UNDP)
estimates only 10 percent of as
much as a $600 million micro-
hnunce murkeL In Myunmur Is
_.,.:.~._..~ ~q.~..
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. e_e.~.~~...~ ~:.,_..,
.....: . . ~, .~ q .e ..:..:.
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, ., ..~: ~ .... ....q, ~~ ~
._~:...:q~.:..__e.._~:.
~..q ~, ~._.. ~ ~. .q.e ~ ._
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._.
LIFT ._ ~...,.. ...,.
..: q,..~.~.~.q._e._..
~, .. . , ...: q ~ . .:.~~ ~
_:.q..:~ . . ~ _.. . ..._. .
_., .:. -~_~ .. . ~~ .~_.~ .e
..: ....~e~._._e.._ Pact
Global Microfnance Fund (PGMF)
. .~...: .~,......:..
~_~...._eq...:.~ .:~....
._~:. .q._.
_~.~.._ _._~.. ~~.
~_ .~ .e ..: ~e ~._ ..:.-
~_~ ..:.. ..... ~. ~. ~. q. _e.
.:._ _e. ._~: . PGMF - ~_~ .
~~~.._e.. Fahmid Bhuiya
~ ._.:_~:..._.
..,.~.:.~._.~.~~.:
q, .:.,. q ~ :e . . ~ ~~ ~ . ...| .
.|~ ..: q ~ . ~.. .:.. . ...| .
..:q~q._~~~ ~..._.:~
~e._~:. .....~..,..:
~..:...|. ,~~~ ~q.,_..
,.~~~~ ~~~_.:......:
._ _e. ._~: . ,.~ ._.:_~:.. ._ .
e.....~.~..: Myanmar
Access to Rural Credit (MARC)
_e. _. . ~....:.. .... . , .~e
~._.~.. .~:. .~...q....
. ..... . ~.q~~ ~ ..| . ~~~
.. ~......:.~~~ .,:~.
....~.q~~~..|. ~~~~ .
~ ~ ..... ._ _e. .. ~. ... .
.:.~.,_e . . , .~...:.~ .~
..~.:....__e.._.
~. .|.... ~. ~. ._ _.. ~~, .
..'. _.,.:.~.e......:.
q q:..|. ~~ ,..|.~:. .....:.
......__e.._. .~:. ,
q~ ., ~ _._ ~ ..... . . , ...
|... ...._ (MARC) . .._~.
.:~.~_..:.~ .._.:.....
q,~~~ ~q:.~..:~_.~
.:.~ _....._.. .:._..~
._. Pact . .,:~. ~q.~
. . ~e ~._...| . ... . ~:. ~...
.:.......,..:.~_e. ..:q~
.q,~~~ _~........:.:.
.__e.._~:. .q._.
..e_e.~.~~.q.~e~._._e.
..: ~:,~.~e- .|,~~:_e..
Cin Khan Lian ~ ..~~.,_e
..~,.~. .....~..~q..:
. .:. ~:. .~:.., . ..: ..:
.....:._e ~~~_...._.. ,.
~ -~ . ~ .~~ .:q, . . .:.. .:.
~~ ~ .:.,. q ~ :e . . ~ ~ . . e, ~ .
....:. _e. ._~: . ._.:_~:.. ._ .
......,..:.~ ~.~:...
.q:~ . : . . ..: . q, . , . ..:
..:.~ PGMF ._ . .... . , .
.:.~:. ,_.._:. ~e~._..
q: . . ...: q_ .:.~:. ~ .~~ .:
..q, ~~ ~ ..: q ~ . ._~: . Pact
. ._.:_~:..._.
e.~e~._. |. .._ ..
......: ..:._ ~e~._..:.
_e. _~_. . .... . . , ..:.~_e. ..:
q~.:..__e.._~:. MARC -
..~,..,.,:_e.. ._~_.:~
._.:_~:..._.
e.~. ....~.~..~:.
.:.._~:.~.~.~:..,..:
.. . . . ~. . ~ q ..:. . :.
~~ ~ . :.. :~.:~ ~~ _ e. ..
.__e... ..,.~~.._.
..:...:.q.. .:.,. q ~ :e . . ~
~~ ~ ._ .e. .... ~. ~. .~: .
.:.~.:..:~~~_......._
e . q._ .
beIng suLIshed. PucL suId IL uIms
Lo hII LIe gup wILI LIe MARC
project.
Fund Director Andrew Kirk-
wood said: We have an oppor-
tunity for Myanmar-based or-
ganisations to help Myanmars
rural poor help themselves and
enjoy a brighter future.
Administered by the United
NuLIonuI NuLIons Omce oI Pro-
ject Services, LIFT was estab-
lished in Myanmar in 2009 by
donors that include Australia,
Denmark, the European Union,
France, the Netherlands, Swe-
den, New Zealand, Switzerland,
the United Kingdom and the
United States of America.
With access to credit, farm-
ers will be able to buy higher
quality seeds, fertilisers and
additional labour that improve
harvests and increase incomes,
Pact said. Small loans on aver-
age of $100 help women either
expand or start microbusiness-
es preparing or selling food-
sLus or oLIer goods, IL udded.
We can help teach farmers
more emcIenL ugrIcuILuruI pruc-
tices to increase their yields,
but unless they have capital to
We have always wanted to help them
with small, affordable loans that could
be used to grow their incomes and
better feed their families, but we nev-
er knew how or had the funds.
invest in the cultivation of their
plants, they cant take advan-
tage of what theyve learned,
said U Maung Maung Soe Tint
of Border Areas Development
AuLIorILy, one oI LIe hve new
local lenders.
Myanmar Summary
Micronance Ioan distribution program in Kaw Hmu township in Yangon.
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INVESTMENT & FINANCE
19
For more information or to apply for a free place, please contact us at rsvp@euromoneyasia.com or visit our website
http://www.euromoneyconferences.com/ASEAN.html
Corporate ASEAN and the advent of the ASEAN Economic Community
The ASEAN Economic Congress
2 Apri| 2014 Pete| Mu|ia Senayan, Iakarta
In anticipation of the 2015 ASEAN Economic Community (AEC), the region is transforming itself into a single regional common market with free movement
of goods and services. The longer term implications to trade, labour and capital flows will be great for this convergence story.
Find out how business leaders are positioning their companies to adapt to an open ASEAN market which will comprise of over 600 million people and 10
countries.
Join the regions top policymakers, C-level business executives, bankers and thought leaders in Jakarta, home of the ASEAN Secretariat, on 2 April to find
out what the AEC will mean for the future of your company.
Euromoney will examine key themes of the AEC for both the public and private ectors including:
The ASEAN Economic Community. integration amidst g|oba| economic cha||enges
Corporate ASEAN and the advent of the AEC
C-|eve| conversation. from regiona| free trade to a regiona| economic community
China, Japan and Korea and the AEC
Bui|ding a competitive edge in ASEAN
Future of ASEAN trade finance
ASEAN capita| markets
Treasury so|utions for corporate ASEAN
RMB's ro|e in ASEAN
Future of AEC banking
Lead Sponsors Supporting Organisations
Myanmar Summary
Murobeni Corp to Iorm Myunmur JV Ior
Corroguted Contuiner Bosiness
A
subsidiary of Japanese
conglomerate Marubeni
Corp will form a joint
Kyaw Min
., . - . .. :..q.~ ~:.. _~ ._e.
._ .:,,.~:..q.q.- qee:
q:..,..._.. Oji Holdings
Corp. qee: q:..,...
..:. . , .. _e. ._ ....q :.~._.
. ~ GS Paper & Packaging Sdn Bhd
(GSPP) ._ ..:..~._..~:
~ ~~ - . . . , ..:.~ ..: q ~
q, ~~ ~ ~~ .~ . . , .~. . ~
e._.~_.:.:..__e.._~:.
.q._.
~. .|. . , .._ _._ ~ .. . , .
~.......|._ q..._....:.._
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.:.~:. ~~ ... ......~
~:. -_.~,, ~~. .~..:
q~.:.._e .:,,. ._.:_~:..
._.
venture to start a corrugated
container business in Yangons
Mingaladon Industrial Park,
the company said.
Malaysia-based GS Paper &
Packaging Sdn Bhd (GSPP),
where Marubeni holds 25 per-
cent and Oji Holdings Corp 75
percent stake, will invest as a
major stakeholder along with a
local partner to form the
Myanmar JV.
Operation will start in
LIe hrsL quurLer (AprII-
June) of 2015, Marubeni
said.
The new entity, Oji GS
Packaging (Yangon) Co
Ltd, will manufacture
and sell corrugated con-
tainer products such as
sheet and box.
oreIgn-um IIuLed com-
panies including Japa-
nese companies have
been extending their
businesses to Myanmar,
a country with inexpen-
sive labour and abun-
dant natural resources.
The domestic demand is
also expected to surge as
a result of the recent eco-
nomic reforms.
Marubeni said it fore-
casts an increase in de-
mand for high-quality
corrugated container products.
The new joint venture compa-
ny will incorporate its demand
by utilising well-equipped and
modernised converting facilities
in Myanmar ahead of its com-
petitors, the company said.
Marubeni opened a branch
om ce In Yungon In 1qqz, und
has invested in infrastructure
development such as power
plants. The company opened a
IIuIson om ce In Nuy PyI Tuw In
January 2012.
A corrugated container plant in Japan.
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Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Myanmar Summary
Myanmar Summary
T
hailand is calling on My-
anmar to use the Thai
baht as a medium of ex-
change in the countrys domes-
tic trade in a bid to boost trade
and investment between both
Thuilund Wunts Myunmur to Lse Buht to Boost Trude
Shein Thu Aung countries.
The move came after the con-
clusion of the 7
th
Meeting of
Thailand-Myanmar Joint Com-
mission for Bilateral Coopera-
tion held in Nay Pyi Taw last
November, the National News
Bureau of Thailand (NNT) said.
Myanmar said it will decide on
the matter soon as its national
bank is currently undergoing a
new administration transition.
Both countries had been en-
joying steady growth in trade
and investment, with Thailand
pushing for the development
JICA to Help Gov't
Modernise Costoms ept
T
he Myanmar Customs
Department under the
Ministry of Finance and
Japan International Coopera-
tion Agency (JICA) are going
to implement a technical coop-
eration project in a bid to mod-
ernise Myanmars customs and
introduce an automated cargo
clearance system.
With an expected rise in trade
volume in near future, Myan-
mar Customs is trying to up-
grade its decades-old customs
clearance procedures and busi-
ness process by introducing an
automated cargo clearance and
risk management system.
Under LIe projecL, LIe omcIuIs
of Myanmar Customs will gain
knowledge and skills to oper-
ate, maintain and manage My-
anmar Automated Cargo Clear-
ance System (MACCS/MCIS),
JICA said in a statement.
JICA will dispatch three long-
term experts and short term
experts as needed, and the du-
ration of the project will be four
years.
JICA said necessary laws and
regulations as well as security
policy and mechanism for prop-
er operation of MCIS will also
be developed. In addition, ca-
pucILIes on LurI cIussIhcuLIon,
customs valuation, post clear-
Kyaw Min
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~ , .._.:_~:._. ._e. ._~: . National
News Bureau of Thailand (NNT)
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ance audit and customs risk
management will be strength-
ened with the MACCS, it added.
Both parties signed Record of
Discussions (R/D) on the pro-
ject Capacity Development
for National Single Window
and Customs Modernization
and Introducing Automated
Cargo Clearance System at
LIe Myunmur CusLoms Omce
in Yangon. The agreement was
signed by U Htun Thein, direc-
tor general of Customs Depart-
ment, and Masahiko Tanaka,
chief representative of JICA
Myunmur Omce.
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automated cargo clearance .,.
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e _e.~.~~.:q, ..:.,.:.._
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._.
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Myanmar Automated Cargo
ClearanceSystem(MACCS/MCIS)
.,. ~ ..: q ~ , .. . .. .:. _.. .
.:.q,~~~ .~...: ~.._:
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Myanmar's decades oId cargo cIearance system has become ineffective as the country's trade voIume surges. The Myanmar
Customs will receive a Japanese grant to streamline its procedures and introduce an automated cargo clearance system.
S
h
e
r
p
a

H
o
s
s
a
in
y
of a trade-related stimulus pro-
gramme aimed at generating
at least THB12 billion ($371.56
million) in trade value by 2015.
Thailand has reiterated its
support for the establishment
of the Dawei special economic
zone which it believes would
be able to create investor con-
hdence.
Thailand has also urged My-
anmar to give its support to the
ACMECS Single Visa (ASV) to
attract more visitors from other
countries.
Myanmar on her part is seek-
ing assistance from Thailand in
the areas of agricultural tech-
nology and labour cooperation.
R
e
u
t
e
r
s
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
Myanmar Summary
David Mayes
I
t is very easy to be-
come confused by the
abundance of seem-
ingly investment related
material available on the
internet today. Making
sense of it all is sometimes
enough to make even an
investment profession-
als head spin. Generally
speaking there are two
types of activities that fall
under the broad umbrella
of what most people sim-
ply think of as investing,
and understanding the
dIerence beLween LIe
Lwo cun IeIp you hILer ouL
much of the information
out there. One activity is
actually investing, and
the other is speculating. I
have mentioned this dis-
LIncLIon beIore brIey buL
thought it might be good
Lo expIuIn LIe dIerence
in a little more depth.
I just recently watched
the movie The Wolf of
Wall Street, and the way
the main character got
IIs sLurL In hIm serIousIy
made my stomach turn.
Those in our industry are
meunL Lo be bound by u h-
duciary duty to act for our
clients as we would for
ourselves. The sad truth
unfortunately is that in
reality there are many
out there in the advice
industry who probably
have similar moral char-
acteristics as those in the
hIm. However, II LIeIr vIc-
tims had been educated
enough to understand the
dIerences beLween In-
vesting and speculating,
any damage done would
Iuve been very InsIgnIh-
cant to the victims over-
uII hnuncIuI weII-beIng. I
you Iuven`L seen LIe hIm,
basically Leonardos char-
acter scams people into
making extremely specu-
lative bets so he can earn
a very high commission.
He gets very rich while his
clients all lose money.
TIe muIn dIerence be-
tween investing and spec-
ulating is that speculating
is generally considered to
be an activity that you do
with money that you can
uord Lo Iose In ILs enLIre-
A Very Importunt istinction: Investing Vs Specoluting
ty. Investing on the other
hand is an activity that
is intended to grow over
a certain timeframe, de-
spite that fact that it may
go through extended peri-
ods of drawdown. For in-
stance, even though cer-
tain asset classes such as
emerging market equities
are very volatile and may
drop sIgnIhcunLIy In uny
one given year, a diversi-
hed porLIoIIo oI LIem wIII
be expected to grow over
a long enough timeframe.
A speculative holding, on
the other hand, may in
fact go down to zero for-
ever.
Knowing which types
of assets are speculative
and how much of your
net worth is generally
considered a good idea to
put into speculative posi-
tions can help you avoid
much of the garbage that
is out there and help you
know which news or
opinion is not really of
interest to the matters of
your investment portfo-
lio. Investing in individu-
al technology and up and
coming stocks, start-ups,
IPOs, pink sheets, private
equity, naked options, fu-
tures, currencies, and art-
work are all examples of
speculative activities. Fol-
lowing short term trading
strategies yourself is also
a speculative strategy.
Indexing across sec-
tors and countries or re-
gions with the intent to
hold long term is more
along the lines of what
you should be thinking
of as investing. Investing
with some fund manag-
ers who have successfully
developed a long term
track with some of the
speculative strategies I
mentioned above, as long
as it line with an over-
uII dIversIhed porLIoIIo
approach would also be
considered investing. You
can also of course assem-
bIe u dIversIhed porLIoIIo
of high quality companies
yourself following fun-
damental valuation tech-
niques and even include
a small portion of your
investment portfolio in
speculative positions. It
needs to be a very small
percent, I like to recom-
mend keeping it under 10
percent. The main key to
investing is diversifying
across a broad spread of
securities, asset classes,
and strategies.
There is some overlap
where the line between
investing and speculating
gets blurred, for instance
going heavy into a sector
such as mining or a coun-
try such as Russia, as you
may have read about in
my recent articles. These
should be viewed as in-
vestments, but as a part
oI u wIder dIversIhed
portfolio. For instance
maybe you become over
weighted in one of these
to 15-20 percent of the
equity portion of a port-
folio, where equity makes
up 40 percent of the over-
all portfolio, just to give
an example. For those of
you who want to watch a
movIe LIuL porLruys u hg-
ure on Wall Street that I
have always used a moti-
vational tool for myself,
and portrays a character
in stark contrast to the
one recently played by
Leonardo Dicaprio, check
out The Pursuit of Hap-
piness with Will Smith.
I hope the reality is that
there are actually more
of these types of charac-
ters out there, but under-
standing the above should
protect you from making
a large mistake if you run
across someone who isnt.
David Mayes MBA
provides wealth man-
agement services to ex-
patriates throughout
Southeast Asia, focusing
on UK Pension Trans-
fers. He can be reached
at david.m@faramond.
com. Faramond UK is
regulated by the FCA and
provides advice on pen-
sions and taxation.
The main difference between investing and speculating is that speculating is generally considered to be an activity that you do with money
that you can afford to lose in its entirety.
L
u
c
a
s

J
a
c
k
s
o
n
/
R
e
u
t
e
r
s
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q..._...._.q,_e.._.
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
Myanmar Summary
From page ...(Myanmar's Hydropower)
From page ...(Myanmar's Hydropower)
ing peace economy in Myan-
mar, as explored by the author
in previous work at the Institute
for Security and Development
Policy (ISDP), also seems to
be present in negotiations and
conIcL uround Iydropower
projects.
For instance, a portion of the
area surrounding the proposed
Hutgyi dam site had long been
under the control of the Demo-
cratic Karen Benevolent Army
Brigade 5 (DKBA-5; a splinter
of the DKBA, an armed ethnic
group). In April 2013, govern-
ment forces clashed with the
DKBA close to the dam site as
the latter refused to leave their
nearby base.
The Burma Rivers Network,
an alliance of several local en-
vironmental activist groups,
believe that up to 50 clashes
between military forces and
armed ethnic groups have oc-
curred in connection with on-
going hydropower projects in
the last three years. While this
cannot be independently veri-
hed, IL Is neverLIeIess uppurenL
that the ongoing peace process
needs to address land rights and
other issues that are directly as-
sociated with dam construction.
As such, dam construction re-
mains a bartering chip for eth-
nic groups, armed or otherwise,
to use at the negotiating table.
Land acquisition has been a
key driver for protests in dam
construction across the coun-
try. This was most notable in
the case of the Myitsone dam,
a Chinese-backed $3.6-billion
venture that was suspended by
Nay Pyi Taw much to the cha-
grin of Beijing. The protests
against the Myitsone dam, situ-
ated in northern Myanmars
Kachin state, have received the
most attention in recent years.
Dam construction was blamed
for the breakdown of the 17-
yeur ceusehre wILI LIe KucIIn
Independence Army in mid-
2011. Clashes between the Tat-
madaw and the KIA, who were
concerned over the expansion
of the dam, have led to a rising
death toll. As construction re-
mains suspended at the Myit-
sone dam pending further eval-
uation and negotiation, protests
and clashes at other dam sites
have also generated national
and international media atten-
tion.
In addition to land acquisi-
tion, many of the local protests
focus on the consequences for
peoples livelihoods and the
environmental impacts of the
hydropower projects. Reports
about the construction of Kun-
long dam, for instance, men-
tion that an area with 64 houses
and 300 acres of agricultural
land will probably have to be
ooded. L remuIns Lo be seen II
land and house owners will be
compensated adequately for the
expected losses.
Recent reports on the Upper
Paunglaung dam, situated 50
kilometres southeast of Nay Pyi
Taw, indicate that locals have
allegedly not been informed
about whether their village
wouId be uecLed or noL. SLud-
ies by the Electricity Generating
Authority of Thailand (EGAT),
involved in at least two large-
scuIe projecLs, IdenLIhed 1 vII-
Iuges Lo be purLIuIIy uecLed
while another six villages need
to be relocated. Environmen-
tal rights organisations suggest
that 30,000 people have been
forced to relocate. Additionally,
complaints about inadequate
compensation have frequently
been made public.
As well as issues with local
residents, agreements between
all riparian states China,
Myanmar and Thailand are
needed. Changes to upstream
river systems can have sig-
nIhcunL eecLs on downsLreum
users. A formal multilateral
agreement would help the sus-
tainable management of the
river system. Such agreements
can be a vital institutional step
towards more integrative wa-
ter management and averting
transboundary water disputes.
n order Lo mInImIse conIcL,
the development of hydropower
dums sIouId Iocus on scIenLIhc
and environmental assessments
and community and regional
engagement during the plan-
ning stages. The harnessing of
Myanmars hydropower poten-
tial can and should be looked at
as an opportunity for Nay Pyi
Taw and traditionally opposed
ethnic groups to work together
Ior muLuuI benehL. WIIIe prob-
lems are likely, they should be
handled through dialogue and
negotiation aimed at sustain-
able and mutually acceptable
development.
Elliot Brennan is a Non-Resi-
dent Research Fellow at the In-
stitute for Security and Devel-
opment Policy (Sweden) and
a Non-Resident Fellow at the
Pccijc Iorum-Center jor Strc-
tegic and International Studies
(USA). His research focuses on
conjict mcncement cnd re-
source security. He is currently
based in Southeast Asia. Stefan
Dring is a former intern at
ISDP and is pursuing a Master
in Pecce cnd Conjict Resecrch
at Uppsala University, Swe-
den. The article was originally
published as a Focus Asia pa-
per with the ISDP and has been
republished with the authors
permission.
Tuiwun Mission Aims to Boost Trude with Myunmur
T
he Taiwan Trade Centre
(TTC) in Yangon is look-
ing to explore business
opportunities in Myanmar and
boost bilateral trade between
the two countries, the trade
promotion organisation said.
The trade agency organised a
business matching for a delega-
tion comprising 30 Taiwanese
suppliers of various industries
last week, which was attended
by more than 200 companies.
TIe cenLre orgunIsed hve
business events in Myanmar
last year, while it expects to hold
more than ten events in 2014,
including the Auto Expo, also
called EMMA show, in July.
Since the Myanmar market
opening, the Taiwanese enter-
prises are looking at present-
ing Taiwans best products and
services, and investments in
Myanmar, the agency said in a
statement.
One of the most prominent in-
vestment projects conducted by
Taiwanese enterprises in Myan-
mar is the fdimensional drying
and storage systems at 107 mile
on the way to Nay Pyi Taw.
Nwe Zin
Taiwanese entrepreneurs are
looking into investing in tex-
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tiles, electronics and other pro-
jects in Myanmar, TTC said.
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.._.. ..,..:.~.,_e ...:~
..: ...~.:~... e_~_
.~.q._ ...~~._..~..:~
~~.:.qq,~~~ .~.._.
.:._ .. ~ ~~. ...~
. ~. . . :._. ,.~ q:. . , ._. ~~
.:._e ~:qe_e.~.~~.q.~
~ .,.,.:._.. ~..,~_..:.
.....:~~:. ~.......|.-
~ q:..,.._ .q~:......qq
_. ._e. . . ._ e . q._ ..q~:...
....~,...~...:.. ~q..:
.....:~~:..:.~ ~,~..
... ~..:.q, ..:._..
. . _.. ..'~ ~_ ..:~ q, . .
:.._ .q~:......_..~,.
.:.. ~..qq._.....:~~:.
..:~- q:. . , .~ .: _._ ~ .
~~~ ~.._.q, ..:.._.
"Up to 50 clashes between military
forces and armed ethnic groups
have occurred in connection with
ongoing hydropower projects in the
last three years."
F
ile
s
W
M
C
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Myanmar Summary
Lnderstunding Lund Titles in Myunmur
Colomn: oing Bosiness in Myunmur
Chulapong Yukate
E
conomists believe
land is one of the
most valuable as-
sets on earth and thats
why we call land the real
estate. When it comes to
the issue of understand-
ing land titles in a for-
eign country, especially
for businesspeople who
invest there, it can be dif-
hcuIL Lo compreIend LIe
dIerenL Iuyers und cuL-
egories. Land title in My-
anmar is no exception.
There are 22 laws in My-
anmar which govern the
issues of land, land admin-
istration and land own-
ership, ranging from the
provisions under the Con-
stitution of the Republic of
Union of Myanmar (2008)
to the Lower Burma Land
Revenue Manual issued
in 1876. Therefore refer-
ring to or even outlining
such laws in this article is
impossible. From the busi-
ness point of view, howev-
er, following quick visit to
the nature and legal status
oI dIerenL Lypes oI Iund In
Myanmar can be useful.
Fr eehold Land
Freehold land can be
interpreted in Myanmar
as ancestor land and it is
transferable and can only
be taken back by the gov-
ernment for the states in-
terest and in accordance
with the Land Acquisition
Act 1894. Freehold land
exists mostly in big cities
such as Yangon and Man-
dalay and with the very
few instances in small
town and villages.
Gr ant Land
Grant land is owned by
the government. Land at
the disposal of the govern-
ment may be disposed of
by grant or lease to any en-
tity for a stipulated period
described in the document
known in the Myanmar
language as Ga-Yan. The
lease period can range up
to 90 years and it is trans-
ferable. For Yangon, grants
are given by the Yangon
City Development Com-
mittee (YCDC) and for
Mandalay by the Mandalay
City Development Com-
mittee (MCDC). Both cit-
ies have their own Devel-
opment Committee Laws.
For other cities or towns,
grants are given by the
concerned districts general
administration depart-
ments as they fall within
the broader application of
the development commit-
tee laws which apply to all
part of the country except
Yangon and Mandalay.
Agr i cultur al Land
Agricultural land, under
the Disposal of Tenancies
Law 1963, is the land be-
ing utilised or kept in pos-
session for agricultural
purpose. At present, all
agricultural land is under
the exclusive state-owner-
ship and thus all agricul-
tural land may be leased
to farmers who automati-
cally become tenants to
the land. Under the above
law, the government may
stipulate the conditions
to which the tenants must
adhere to, failure of which
may result in the termina-
tion of the tenancy, or for
serious breach like selling
or transferring the leased
agricultural land, shall be
subject to the prosecu-
tion. The agricultural land
is not transferable.
For est Land
Forest land is declared
and administrated by the
Ministry of Forest under
the Forest Law. Permis-
sion is required from
both the Ministry and the
Cabinet to extract timber,
cuL hrewood und produce
charcoal. Approval is also
required of government
enterprises involved with
gem mining or oil explo-
ration/activities in the
forest land.
Cultur able Land
The government may
grant the rights to cul-
tivate/utilise to joint-
ventures, state owned
enterprises or other or-
ganisations and private in-
dividuals on a commercial
basis such as for agricul-
ture or livestock breeding.
The governing authority
to grant the rights is the
Central Committee for the
Management of Culturable
Land, Fallow Land and
Waste Land.
Town Land
Town land may be clas-
sIhed under eILIer LIe
Freehold Land or Grant
Land but with the titled
document called La Na
39 issued by the State/
Division Peace and De-
velopment Council in the
relevant area under the
Land Nationalization Act
1953. The Town Land is
dIerenLIuLed Irom LIe
Freehold Land and the
Grant Land. In some small
towns that are expanding,
many plots of land trans-
formed to La Na 39 type
land. This La Na 39 type
land could also eventually
became the Grant Land
such as the town of Dagon
Myothit in the outskirt of
Yangon were initially the
agricultural land but its
status was changed to La
Na 39 type land. The La
Na 39 type land is trans-
ferable.
TIe ubove hve Lypes oI
land titles are typically
involved in some forms
of business which the
foreign investors will be
likely to come across. The
other types of land titles
are Garden Land, Graz-
ing Land, Village Land,
the Cantonments and the
Monastery, which, except
for the Village Land, are
not transferable.
Owner shi p by Non-
Ci ti zen
Foreigners are not al-
lowed to own or transfer
land and the only transfer
is allowed by way of lease
which however shall not
exceed one year, except in
the case of MIC-approved
A plot of land in Myanmars capital Nay Pyi Taw.
S
h
e
r
p
a

H
o
s
s
a
in
y
company, whose lease pe-
riod may be granted to 30
years. There is however
no legal provision which
bars foreigners from hav-
ing access to rights for Ag-
ricultural Land or Cultur-
able Land.
Chulapong Yukate is
the Chairman of Myan-
mar Advisory Limited
and can be contacted at
chulapong3@gmail.com.
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March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
24
Myanmar Summary
PROPERTY & REAL ESTATE
Intruco Istublishes Myunmur JV to Tup
InIrustroctore Needs
S
GX-listed trading compa-
ny Intraco Ltd has estab-
lished a joint venture to
get into crane rental and other
related business activities in
Myanmar and tap the Southeast
Asian countrys rising infra-
sLrucLure needs, LIe hrm suId.
The JV entity, Tat Hong In-
traco Heavy Equipment Co Ltd,
established in August last year
between Intraco, Singapore-
based crane company Tat Hong
Holdings Ltd and Myanmar ty-
coon Aung Moe Kyaw, will have
a paid-up capital of $150,000
comprising 150,000 shares.
Aung Moe Kyaw is a Myanmar
businessman with diverse busi-
ness interests. He is best known
as Chairman and Managing Di-
rector of International Bever-
ages Trading Company Group,
the leading alcoholic beverage
producer and distributor in My-
anmar.
Intraco Managing Director
and CEO Foo Der Rong said:
We believe the prospects for
Tat Hong Intraco Heavy Equip-
ment Co Ltd are promising as
Myanmar is opening up and the
Kyaw Min
country has many infrastruc-
tural needs with huge growth
potential.
The transaction is funded
through internal resources and
is not expected to have any ma-
terial impact on earnings per
share or net tangible assets per
sIure oI LIe group Ior LIe hnun-
cial year ending December, In-
traco said.
Incorporated in 1968, Intraco
sourced raw materials, com-
modities and manufactured
goods to support Singapores
early industrialisation pro-
gramme. Intracos network
spans across ASEAN and China.
Tat Hong is the largest crane
rental company in the Asia-
PucIhc regIon In Lerms oI ug-
gregate tonnage, according
to International Cranes, IC50
Ranking in June last year. It has
four key businesses distribu-
tion of cranes and heavy equip-
ment, rental of crawler and
mobile cranes, rental of tower
cranes and general equipment
rental.
Myanmar Summary
Sooth Koreun Boilders Iye Myunmur
M
ajor builders and engi-
neerIng hrms In SouLI
Korea are seeking to
win more mega construction
and plant project orders in My-
anmar, with an eye on Malaysia
also.
The South Korean Ministry of
Land, Infrastructure and Trans-
port said that it has dispatched
a special team of government
omcIuIs Ied by MInIsLer SuI
Seoung-hwan to support South
Korean builders.
The team was joined by repre-
sentatives from over 10 private
builders, including Hyundai
Engineering & Construction,
Samsung C&T, Daelim Inustri-
al and Ssangyong E&C as well
as the state-run Korea Water
Resources Corporation, Korea
Expressway Corporation and
Korea Rail Network Authority.
DurIng LIe hve-duy LrIp IusL
week, the delegation met gov-
ernmenL omcIuIs Irom Myun-
mar and Malaysia to discuss
plans to develop social infra-
structure such as high-speed
ruII neLworks, rehnerIes, power
plants and water management
facilities, according to the min-
Yi Whan-woo istry.
The delegation visited Myan-
mar to draw support from the
Myanmar government for Ko-
rean builders to participate in
a management project for the
Irrawaddy River. The 2,170-km
river is the largest in the coun-
try and also the most important
commercial waterway.
The South Korean ministry
said the development projects
will be put up for bidding in the
hrsL IuII oI LIe yeur uL LIe eurII-
est.
Asia has emerged as Koreas
key market for construction and
plant businesses, said Park
Byung-seok, a director at the
ministrys overseas construc-
tion support division.
In particular, a large number
of project bids which we have
recently won came from South-
east Asia, making it strategical-
ly important.
Koreun hrms secured con-
struction orders worth $65
billion won abroad last year,
according to Park. Some $3.5
billion of the total amount
comes from Malaysia alone, he
said.
The amount of bids we won
in Malaysia was the sixth larg-
est around the world in 2013,
he said.
Suh attended ministerial-level
talks with his Malaysia counter-
part to discuss ways of cooper-
ating to building a $12 billion-
worth railway network for a
bullet train connecting Malay-
sia and Singapore.
Other projects that were dis-
cussed include construction
of $800-million Mass Rapid
Transit system, a railroad net-
work in and around Kuala
umpur, u $zo-bIIIIon rehnery,
un $8oo-mIIIIon IIquehed nuLu-
ral gas plant and an $800-mil-
lion power plant in Pengerang.
Intraco Ltd ._ _.,.:.~
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~:. ..:q~q,~~~ ~~.~
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._.
~~ .~ . . , ._e. ._ Tat Hong
Intraco Heavy Equipment Co Ltd
~ .,.._.. _.~.~ .~:.
~._ .. ~ ~, . .~ ~ .~ _ e. ._
Tat Hong Holdings Ltd . _., .:
. . . . , .q _ ~.~. ._e. ._
..~: . ..~: ~ . ....| .~_ .:
. _. ._e. ._ . ..~: . ..~: ._
_.,.:.~ ~.e:e.~:~..
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Trading Company - ~_.
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- .,.,..|,~~:. .~.~_e.
. Foo Der Rong ~ _.,.:.
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~.:...:.q.,._~:. .q._.
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Seoung-hwan ...:..: ~..q
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_:,. ._.:_~:..._.
~..|~.~e~ Hyundai
Engineering & Construction,
Samsung C&T, DaelimInustrial,
Ssangyong E&C, Korea Water
Resources Corporation, Korea
Expressway Corporation .
Korea Rail Network Authority ~
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Singaporean rm Intraco said it aims to expIore Myanmar's burgeoning construction and infrastructure needs.
S
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South Korea is seeking to win more mega construction projects in Myanmar.
S
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March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
Myanmar Summary
Jugour Lund Rover to Roll into Myunmur
Sales, service and spare parts facility to open in April
A man walks past a billboard advertising Jaguar in New Delhi.
M
a
n
s
i
T
h
a
p
liy
a
l/
R
e
u
t
e
r
s
Phyu Thit Lwin
B
ritish automaker Jaguar
Land Rover said it plans
to tap the rapidly growing
automotive market of Myanmar
and has appointed Capital Au-
tomotive Ltd as its new Jaguar
Land Rover dealer in the region.
Jaguar said Capital Automo-
tive Ltd is completing a new
dealership in Yangon, the coun-
trys commercial centre and
most populous city, which will
oer un InLegruLed suIes, servIce
and spare parts solution.
The facility will open in April
and will bring Jaguar and Land
Rover products to Myanmar.
U Khin Tun, managing direc-
tor of Capital Automotive Ltd,
which is supported by Automo-
tive Service Ltd, a 50/50 Joint
Venture between Thailand-
based Clipper Holdings (RMA
Group) and Capital Automotive
Ltd, said the appointment dem-
onstrates Jaguar Land Rovers
conhdence In IIs hrm.
Many customers who have
been visiting have expressed
much interest in the new Jaguar
and Land Rover range, particu-
larly the Jaguar XF and Range
Rover Evoque, he said.
I am sure we will soon see
many of these new Land Rover
and Jaguar models on the road
In Myunmur. We ure conhdenL
that we will also be able to grow
the Jaguar Land Rover business
here.
Andrew Patrick, British Am-
bassador to Myanmar, said he
was delighted that Jaguar Land
Rover had decided to expand
their global operations to the
Southeast Asian nation.
TIey |Juguur| ure un exum-
ple of British engineering and
manufacturing at its very best;
the produce top quality prod-
ucts, employ and train local
people to interna-
tional standards
and deliver the
highest levels of
customer service.
I am looking
forward to seeing
this famous British
brand in this coun-
try.
While it may
be LIe hrsL LIme
that Jaguar will
be represented in
Myanmar, Land
Rovers have long
been present on
ILs rouds. TIe hrsL
Land Rovers to
explore Myanmar
were driven by stu-
dents from Oxford
and Cambridge
Universities back
in 1955.
The Oxford and
Cambridge Far Eastern Expedi-
tion was a journey undertaken
by six university students in
two Land Rover Series I Station
Wagons from London to Sin-
gapore and included a journey
along the Ledo Road from In-
dia into Myanmar, then known
as Burma. Primarily sponsored
by Land Rover who provided
the vehicles, the expedition was
boLI hImed und documenLed,
and the footage broadcast in the
mid-50s on the BBC.
Jaguar Land Rover employs
around 29,000 people globally
and sells vehicles in over 170
countries around the world,
with 80 percent of production
exported. In the 12 months to
31 March 2013, Jaguar Land
Rover generuLed prohL beIore
tax of 1.675 billion ($2.8 bil-
lion) with revenues of 15.8 bil-
lion ($26.4 billion).
_- ~ ...: .~: ~:.. . , .~. . _e.
._ J aguar Land Rover ._
_., .:. . Capital AutomotiveLtd
~ Jaguar - ~.q: .~ e .:.. e
..~_e. .,~._ ..:.~:~:...
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..: _., .: ~:....~ ~ ~ ~._.~.,
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_. ~ Capital AutomotiveLtd .
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.. _ ..:~ . ._eq .. .:.~ _.. . . :.
._e J aguar . ._.:_~:..._.
..,...:q~..:.~ -_..~
.~_....:..__e._.. J aguar .
Land Rover ..:.~:~:.~~,
.:.~:. _.,.:.~ .q:...q,
_~ ... ...: q ~ . :.._ e . q._ .
Capital AutomotiveLtd . ., ., .
.|,~~:_e.. ..,.~ e.~
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.:.q,.::..._ ,.-..,.
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J aguar . Land Rover ~:...
.:.~ .~~.:..,_~_.. ~.._e
J aguar XF . Range Rover
Evoque ~ ~ _e. ._~: . , .~ ._.:
_~:..._.
Land Rover . J aguar ..:.e
~:....:.~:. _.,.:.~ ~.:.
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_., .:. ~ ~ .~~ .:..q, ~~ ~
..: q ~ .... :.. ._ e . . ~ ~.,
_e e_~_.~q._~:.._. ,.~
._.:_~:..._.
Hyondui Goes Ior Blund over Bold in Sonutu Mukeover
Hyunjoo Jin
S
outh Koreas Hyundai Mo-
tor Co dialled back on the
edgier designs that helped
IL wIn murkeL sIure ubroud hve
years ago, launching last week a
toned-down, angular version of
its popular Sonata sedan to ap-
peal to conservative drivers at
home.
HyunduI, LIe worId`s hILI
largest car maker with its Kia
MoLors Corp umIIuLe, Is bunkIng
on LIe hrsL resLyIIng oI LIe mId-
size sedan since 2009 to help
reverse a slowdown in sales and
revenue growth, as it battles
competition from foreign rivals
at home and a slide in reliability
rankings in the United States,
its second-biggest market after
China.
TIe compuny posLed ILs hrsL
year-on-year fall in quarterly
revenue in nearly three years in
the fourth quarter of last year
and forecast its global sales
growth would slow to 4 percent
in 2014 from 7 percent in 2013.
Automotive industry experts
said the revamped Sonata
looked more like the mid-sized
Camry sedan by Hyundais Jap-
anese rival Toyota Motor Corp.
The car, which Hyundai has
been making since 1985, will go
on sale in March in South Korea
and later in the United States.
Hyundai has followed Camry
in adopting a bland design,
said a person who has close
professional links with Hyundai
and who declined to be named
as he is not authorised to speak
to the media.
US consumers are now used
to the Sonatas distinctive styl-
ing and it will be challenging for
the new Sonata to stand out in
the US market.
HyunduI omcIuIs uppeured Lo
acknowledge that the redesign
could face hurdles in the United
States. Design executive Juh
Byung-chul told Reuters that
US consumer tests showed the
new design was good enough
and acceptable.
The Sonata is Hyundais sec-
ond top seller after its Elantra
model in the United States and
Korea. The current model, with
its distinctive curvy design,
took the United States by storm
wIen IL wus InLroduced hve
years ago, helping Hyundai to
almost double sales to 230,605
in three years.
Sales of the current Sona-
ta, however, fell in Korea to
89,400 in 2013 from a peak of
152,023 in 2010, a factor that
prompted company chairman
Chung Mong-koo and top man-
agement to push for more con-
servative redesign for the new
model.
Reuters
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....|._ ~.~.:. sedan ..:
.~:~:..:.~:. .~._.,._.,.
.. .~ ~~ . . . ~~_ .~ .q: .
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Myanmar Summary
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
26
INTIRNATIONAL AN OMISTIC ILIGHT SCHILLI
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir
TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKo ong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 13:00 14:00 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
27
Myanmar Summary
SSS OHers SsungYong Curs ut iscoonted Price
L
ocal automobile dealer
Super Seven Stars (SSS)
Co Ltd has started sell-
ing Korean-made SsangYong
Motor Cos cars at a discounted
price in Myanmar, the company
said.
Customers will be able to
purchase SsangYongs cars at
a discount of up to K8.5 mil-
lion ($8,500), given the pay-
ment is settled in cash, SSS,
SsangYongs authorised dealer
in Myanmar, said.
SsangYongs Actyon Sports
Phyu Thit Lwin modeI Is now beIng oered uL
$35,000, while the original
price of Actyon Sports is K43.4
million ($43,500).
Purchasers can also go for
three types of instalment-based
payment system: They can pay
half of the car price and pay
the rest over a period of 12
months without any interest;
or, choose to pay 30 percent of
the cars price in cash and the
rest through 24 months with
no interest; or, pay K1.8 mil-
lion (1,800) every month for 24
months without any interest.
One year insurance for the
whole car will also be provided
with the owners name, SSS
Director U Kyaw Thiha said.
The cars are guaranteed for
three years or 100,000 kilome-
tres, he added.
Establsihed in 1954,
SsangYong is the fourth largest
South Korea-based automobile
manufacturer.
In 1997, Daewoo Motors, now
Tata Daewoo, bought a control-
ling stake from the SsangYong
Group, onIy Lo seII IL o uguIn
in 2000, because the conglom-
eruLe run InLo deep hnuncIuI
troubles. In late 2004, the Chi-
nese automobile manufacturer
SAIC took a 51 percent stake
of SsangYong Motor Co. In
January 2009, after recording a
$75.42 million loss due to glob-
al economic crisis and shrink-
ing demand, the company was
put into receivership.
A 70 percent share of
SsangYong was acquired by In-
dian Mahindra & Mahindra Ltd
for 522.5 billion won ($492.7
million) in February 2011, after
being named the preferred bid-
der in 2010 to acquire the bank-
ruptcy-protected company.
SsangYong makes Chairman
W model as its luxury brand,
Rexton W, Kyron, Korando and
Actyon as SUV, Actyon Sports
as double cab and Rodius/
Stavic as family car.
SsangYongs production out-
put in 2012 was 119,142 units,
and the company garnered
revenues of 2.874 trillion won
($2.7 billion) the same year. Its
main production base in South
Korea, while it has factories in
Ukraine and Russia.
Super Seven Stars Co became
SsangYongs exclusive dealer in
Myanmar in 2012.
Super Seven Stars Co., Ltd ._
.~:~q.e:..~ SsangYong
Car .:.~ .~.q:..._ ~..
~.~~.,_e .e.e:~|q. ' q~
..~. ' q~~ SsangYong
Actyon Sports ~..~.:. Double
Cab ~:..:.~ .~ .~e e ._ . .|
~ .~.~.q:....~ .,.
.....: _.q: ...... :.._ e . q
._.
~. .| Ssang Yong Actyon Sports
~:..:.~ ~e e ._ . .|~ . ..q: .
... ,,, .,.. .,......:...
.__e.._e ,, .,...q:.....
.:..__e._.. ~q.~~.,_e ..
...._e ..~.,. ~:.~,e.-
~ q:. . , ...._. . ~, ~ q:. . , .~
~ .~~ .. . .q: ......_ _e. ~:
~. . . ~. .. ..: .~: e: ~:.. .|~
_. . ~._ ..|~ qq ._ _e. ._~: . Super
Seven Star Co., Ltd . .|,~~:
..~:.e~ ._.:._.
. ~ e~.,_e ~:.~, e . ,~ q:.
.,...._.. ~,.~ , .~q.~
~.,_e._. ~~...q:......:.
._ _e. ~: ~~ e~.,_e .. ._~.
~ .,..,._e ~~.. , .~q.~
......._~:. .q._. ~..|
~:. .:. ~ . . . . . .e~ ~ .
~..,.~:.....:.._.
SsangYong Motor Company~
~, . . . ~.~ ~_ .: . ._~: .
.q._.
VW Rethinks Skodu und Seut Strutegy in Muss-Murket Stroggle
Andreas Cremer
I
f Volkswagen wants to beat
Toyota to the global autos
LIrone, IL cun`L uord Lo
Luke ILs IooL o LIe gus In muss-
market cars.
Yet two of its three volume
brands continue to cause head-
aches, with Czech division Sko-
da trailing ambitious sales tar-
gets and Spanish carmaker Seat
battling a decade of losses.
Lower down the chain, VW is
also struggling to hit cost goals
for its planned budget car for
emerging markets, a VW execu-
tive told Reuters.
To overcome its low-end
woes, the German group is now
striking out in a new direction
to boost the image and appeal
of Skoda and Seat, moving the
former back upmarket while re-
focusing Seat on Europe after a
failed China export strategy.
The European auto slump
caused Skoda deliveries to fall
2 percent last year to 921,000,
well short of a 2018 goal of 1.5
million. Sales at Seat were up
11 percent at 355,000, but un-
derutilised capacity served to
extend its long run of losses.
By contrast French carmak-
er Renaults budget models
helped it to defy a weak Europe
und score sIgnIhcunL guIns In
emerging markets, with a par-
ticularly strong showing from
its no-frills Dacia brand.
Without a turnaround in mass
markets for VW, Europes No.1
automotive group could strug-
gle to surpass Toyota as the
worlds biggest carmaker by
2018. In the nearer term, fail-
ure to get to grips with the low-
er-cost brands is likely to weigh
on its share price.
VW needs a compelling pres-
ence in volume segments and
emerging markets if theyre se-
rious about clinching the top
spot and retaining it, said Ste-
fan Bratzel, head of the Centre
of Automotive Management
think-tank near Cologne.
Regardless of whether it surpass-
es Toyota, VW must succeed in low-
er-cost categories to remain a force
in a volume segment that brings
the economies of scale required
Lo meeL ILs prohL gouIs. Skodu und
Seat accounted for 13 percent of
VWs 9.7 million record sales last
year. Reuters
Myanmar Summary
Volkswagen ~.,_e ~e~:
~:. ~.:..:.~:~:....~~~
~.:..q..|~ ...~~_~..:.~
_., ._ . ..:.. ... q, . ~. .,
._~:. .q._.
.~.. VW - ..:.~:~:.
..,.._e.._ Skoda ~.,_e
._. ~.q:...:.,..~~ _._.
q, _~.....,q.. ..,.-..:
.~: ~:.. . , ._e. ._ Seat . :._ .
.e . . . ~_~:~, ...'. .:.. q .
.,q._. VW ~.,_e e_e.....
~~~ .q:...:.q,..:...:
.. .. , .. .:..:~:.. :.~~ ~
~,~.q~..:.,..~~ .~:_.
.~: ..: q ~ q, ~~ ~ ._ .
, , .~, .,q._~: . VW . ~. ..:
~..~ ,~~:.~._:,. ._.:
_~:. .._.
:.,~:...,._~.~.,_e VW
..:.~:~:.~.~~..~:. ,:._
.~:...qq.:..q,~~~ ...
._~:...~.q..._.:.q, _~....
.,._. ~,~.. ~..-e:
.~:_...qq.._.,:~ Seat
~:. .q:....~~_ .~:_..:
q, _~ ... ..:_. ._e. ._~: .._ . . q
._.
.q:.~:. .. . ~ ~ ~._ .~.,
..~:..,.._~: Skoda - ~.
.q:..q.._ .,.._..~ ..
q:..,.~..._.. Seat -.q:..
q..:..: ~~ q:..,.~.~~.:.
..:._. ~.,_~:_..: ..,.
~,...'..:.q.,._.VW ~.,_e
.q:.~. ~:....~~_~..:..
_.,._._...._..|~ ~e~:
~:. .~:_e~q,~~~ ,,.~,.:.
qeeq._.
S
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March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
28
IT & TELECOM
Ntegrutor Secores S$.q-m
Contructs in Myunmur
Groups subsidiary receives permanent certifcate of registration
Zayar Phyo
S
ingapore-based communi-
cations network company
Ntegrator Internation-
al Ltd has secured four ma-
jor deals worth S$2.9 million
($2.28 million), for the supply
of telecommunications equip-
ment to major repeat customers
In Myunmur, LIe hrm suId.
Three contracts, awarded by
Myanmars Ministry of De-
fence (MOD), are for the sup-
ply of communications net-
work equipment for expansion
of network capacity, while the
fourth contract, awarded by
MRTV, Myanmars state-owned
broadcast radio and television
network, is for the supply of an
FM transmitter.
Jimmy Chang, managing di-
rector of Ntegrator, said, Rid-
ing on the momentum of our
hrsL round oI conLrucL wIns In
January, we have secured an-
other four contracts from two
major customers in Myanmar.
He suId LIe hrm`s Lruck record
and reputation for delivering
quality products and services
on a timely basis continue to
earn it the support of MOD and
MRTV two repeat customers
who have been with us since we
entered the Myanmar market a
decade ago.
All the four contracts are slat-
ed for delivery in the current
hnuncIuI yeur und ure expecLed
to bring positive contributions
Lo LIe group`s hnuncIuI perIor-
munce Ior LIe hnuncIuI yeur
ending December 31, Ntegrator
said in a statement.
With these new contracts,
Ntegrator has secured orders of
over S$6.9 million ($5.42 mil-
IIon) In LIe hrsL Lwo monLIs oI
FY2014.
Industry watchers have fore-
cast foreign investments into
Myanmar to reach over $100
billion over the next two dec-
udes, wILI u sIgnIhcunL porLIon
directed at the infrastructure
and telecommunication sector,
according to global research
hrm McKInsey.
To sink its roots deeper and
to better capture new business
opportunities in the country the
company established a wholly-
owned subsidiary, Ntegrator
Myanmar, in August last year.
The company said this will af-
ford the group a greater degree
of engagement with custom-
ers and a faster response time
through a dedicated sales and
support team on the ground.
Ntegrator Myanmar received
LIe permunenL cerLIhcuLe oI
registration from the Myanmar
Ministry of National Planning
and Economic Development on
February 21.
We remain positive on op-
portunities in 2014 as the glob-
al economic outlook continues
to be positive and demand for
network and communications
hardware and services in the re-
gion continues to grow, Chang
said.
Ntegrators core businesses
include the design, installation
and implementation of data,
vIdeo, hbre opLIcs, wIreIess und
cellular network infrastructure
as well as voice communication
systems.
TIe hrm uIso Ius operuLIons
in Vietnam and Thailand.
Myanmar Summary
.~:.~._..~ .~.e.q.~,
q~~.~~.._e...: Ntegrator
International Ltd ._ _., .:. ~
.~:...'.: . .,. ~..q
~,..'.: . .,.,~,e.q._
. . , ...:~ _ . _~ . , . ~ qq . _.
_e._.. .~.e.q...,....q:
~. . ~..: .. _ . ~ q e: .:.
.:~ . q, ~~ ~ _e. ._~: . Ntegrator
. ._.:_~:..._.
~:~ e .q.~, _~ ._:,. ~ , q~ .~
.~ . .:. ~.~~ .:..q, ~~ ~
.....:q,.~...: .~
.e.q.~,q~.._..:..:~.q,
. . , ...:~ _ .~ , . . .~ ~
._.:~ . . , . ..:~ _ .~ ~:.
_.,.:~..,._.._~:.. FM
transmitter .:~ . q, ~~ ~ _.. .
._.._e.._~:. .q._.
Ntegrator . .,.,..|,~~:
_e.. J immy Chang ~ ~,,~|q.
~ .. .. .. . , ...:~ _ .~
~. . ~ qq . _. . _., .:. ~ .,:~
. . . , ...:~ _ . _~ . , . ~:.
_.. . . . _. _e. ._~: . ._.:_~:.. ._ .
. , . ..: .e . . . ~. . ., ~~_ .
~ _.,.:...~~. Ntegrator
~ .q:~ . _. ._e. _. . ~. , ~~_ .
.._ ~:~e.q.~,_~._:, _.,.:
~. . , . _. . _~:.~ ._ Ntegrator
~~ ~ ~.q..|..:.e:~ ._ .:._e.
.._~:.._. .q._.
e.~. ..,...:~_..:.
~ qq.._~~~ ~.~-_:
.q.~._.~.,. :._ . e. . . ~ . .
.~:..,.:q, ..:.,.:.._~:.
.q._.
e...,...:~_.~...:.
.~~ Ntegrator ._ ~~, ...
- .. .~:~~. .._..:e.
~,e. .~:...'.: '. .,.
~..q~,..'.: ., .,., ~
qq._._e.._~:.._. .q._.
Ooredoo Luonches Iirst Phuse oI Rolloot;
Suys Getting Permits Tuking Longer thun Ixpected
Sherpa Hossainy
Q
atars Ooredoo said it
has carried out a suc-
cessful technical launch
und LesLIng oI LIe hrsL pIuse oI
its network rollout, although its
taking longer for the company
to get the permits from the gov-
ernment to build its sites.
TIe LeIecom hrm suId IusL
week it was able to connect its
MICT Park headquarters with
its Data Centre and immediate
surroundings.
The network enabled testing
of voice, SMS and data connec-
tivity. In addition, integration
of technology partner Huaweis
IT system enabled the perfor-
mance of several key functions,
including customer activation,
billing and Top Up, Ooredoo
Myanmar said in a statement.
Ross Cormack, CEO of Oore-
doo Myanmar said, This suc-
cessful stage of the rollout,
represents an important mile-
stone in the development of
our network. It is exciting ... for
the growing numbers of deal-
ers who are joining the Ooredoo
family.
DurIng LIe IuuncI evenL, sLu
members and invited partici-
pants made voice calls, sent and
received text messages and they
browsed the internet, the com-
pany said. Ooredoo claimed the
network delivered high quality
voice services and fast SMS de-
livery times.
Activation and Top Up via
SMS, USSD and IVR were in-
stantaneous and web browsing
services gave a great customer
experience, it said.
However, Cormack sounded
cuuLIon suyIng LIuL LIe hrm Is
facing challenges while obtain-
ing permits to build its sites.
Clearly, the delivering scale
within tight timeframes is chal-
lenging. Obtaining the neces-
sary permits to build our sites
is taking longer than we would
have hoped.
Finding solutions to fast-
track this process is in every-
ones interests.
Edwin Vanderbruggen, a
partner at VDB Loi, one of My-
anmars leading law and advi-
sory hrms, speukIng on IIs own
behalf said the current regula-
tory framework in Myanmar
with respect to land use and
construction does not lend itself
the national rollout of network
infrastructure that the opera-
tors need to undertake.
Myanmars regulations on
the subject do not recognise
the possibility of a nationwide
project. The problems with land
right documentation, land use
changes, lease registration and
construction permits are in my
personal view too big to keep
the regulations as they are, he
told Myanmar Business Today.
We need a silver bullet, a
regulation that takes care of all
these issues in one go.
Myanmar Summary
~:~:.-.~.e.q...,.
_~._e.._ Ooredoo._ ,.~-
~ , q~ . . , ..:...: q ~ . -..
~. .......:.~ _...q:~
.~: _. . :..: q ~ . . ._~: . . q
._. ~. .|.~ . e .q.. . , ._~..
. , .._ q~ .~ .~ ~ MICT Park
, ... . .~ .~.~ ~.~ . ~: ~
,.~,:.~,.~.:..~_.,.~.~.
.:.~ _.. . . . ._~: . ._.:_~:.. ._ .
~. .|~ , q~ . ~ .~ . ~ .. ...
q:~ voice, SMS . ~.~ ~.~
.:.. ~ .~ . . .:.~ .. ... . ._~: .
.q._. Ooredoo Myanmar .
.~.~_e.. Ross Cormack ~
e. ~ . ~ , q~ . ~ .~ . ~ .. ...
q:~ .~: _. . ._ ~._.~.,._
. . ~ -~ , q~ .:.~:. e _e .~ .~~ .
.e: ..: . . ~ q:~ ~.q..|._
~.~ ~. . _e. ._~: . ._.:_~:.. ._ .
O
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Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
Telenor Om ciully Opens Myunmur HQ
Will boost Myanmar operations, frm says
Kyaw Min
N
orwegIun LeIecom hrm
TeIenor Ius om cIuIIy
opened the companys
headquarters in Myanmars
commercial hub Yangon, the
hrm suId.
Telenor Myanmar, one of the
winners of last years telecom
tender, said when fully-opera-
tional, the 13-storey Telenor
House will accommodate
around 600 employees.
The 80,000-square feet facil-
ity, which is located at No.40,
No (1) Industrial Road, Yangon,
will become fully operational
next month, Telenor said.
We expect the next few
years to be especially dynamic
and fast-moving, and having a
headquarters from which we
can drive strategies and grow
our team puts us in a strong
position to achieve a successful
network roll-out and launch of
products and services, Sigve
Brekke, chairman, Telenor My-
anmar and head of Telenor in
Asia.
He said the move underscores
LIe hrm`s commILmenL Lo be u
long-term investor to Myanmar
and contribute to its economic
development.
Telenor Myanmars head-
quarters in Yangon will house
the Telenor Myanmar Acad-
emy, a centre for professional
development programs for the
hrm`s empIoyees.
The telecoms company said
the headquarters will adopt
open-space design principles
and recreational areas to pro-
mote cross-functional com-
munication and collaboration.
TIe ground oor oI LIe buIIdIng
will feature a Telenor retail shop
for walk-in customers requiring
information on Telenors prod-
ucts and services, it added.
Telenor Myanmar chief ex-
ecuLIve om cer PeLLer urberg,
said the headquarters will be at
LIe IeurL oI LIe hrm`s busIness
development and operations in
the country.
In addition to serving as the
main base for our employees
throughout Myanmar, Telenor
House will provide an inspiring
working and learning environ-
ment that fosters collaboration
among employees, he said.
Telenor Myanmar plans to
recruit 1,000 employees by
the end of 2014, including em-
.,: .~..~ . e .q.~ . ~ Telenor
- , .~ -, ... ~ q, ~ , _. - . .. :.
.q.~q ~.~~.:~._.,q:~
e . . . _. ._e. ._ ..~ . e .q.. . , .
. . ~ .|.~: . ._ .,: .~~._.
. ~ .~ . e .q.~ . ~ ._ "Telenor
House" ~._q ~, .~_.q
~..:~ ~~ ~:. q, ~ , _. .~ . ~
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ployees who will be working
In regIonuI om ces und on-LIe-
ground at local sites and facili-
ties as the company prepares
for a network roll-out.
Myanmar Summary
Telenor Myanmars headquarters in Yangon.
T
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M
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Thuilund's Troe Seeks Ioreign
Purtner Ior SootheustAsiu Ixpunsion
To conclude deal in next 2 months to operate mobile services in Myanmar
T
hai telecommunications
group True Corp PCL
wants to take on a for-
eign partner in the second half
of this year to help it expand in
Southeast Asia, its chief execu-
tive said last week.
True Corp, controlled by
Thailands richest man Dha-
nin Chearavanont, plans to of-
fer any potential partner new
shares equivalent to about
quarter of its existing equity,
Chief Executive Suphachai
Chearavanont told reporters.
We prefer to raise funds via
an equity issue to open way for
a foreign partner to take a stake
in True, Suphachai said. He
declined to give further details.
The company expects to con-
cIude ILs hrsL SouLIeusL AsIun
deal a joint partnership with
Myanmars Yatanarpon Tel-
eport within the next two
months, Suphachai said.
Manunphattr Dhananan-
phorn & Khettiya Jittapong
The deal, if successful, would
pit True against Telenor and
Qatars Ooredoo which are
building new mobile networks
in Myanmar, a country where
less than a tenth of the 60 mil-
lion population has a mobile
phone.
True, which operates Thai-
lands third biggest mobile net-
work by subscribers, is current-
ly the only major Thai telecom
operator without a foreign part-
ner. Market leader Advanced
Info Service Pcl is 23 percent
owned by Singapore Telecom-
munications and Total Access
Communication is majority
owned by Norways Telenor.
ucIng sLI compeLILIon uL
home, True Corp has set its
sights on the rapidly growing
economies of Southeast Asia.
Suphachai said True Corp
aimed to sign on 100 million
subscribers in the region over
LIe nexL hve yeurs, wIIcI wouId
be uImosL hve LImes us mucI us
its current subscriber base in
Thailand.
Debt Bur den
True is the only Thai telecom
operuLor oerIng u IuII runge oI
servIces Irom mobIIe und hxed-
line phones to broadband Inter-
net and cable television.
An aggressive expansion of its
mobile network has left True
with a net debt of $2.3 billion at
the end of 2013, the third larg-
est among telecom operator in
Southeast Asia, Reuters calcu-
lations show.
CIIeI InuncIuI Om cer Nop-
padol Dej-Udom said True was
considering selling more tele-
coms networks to an infrastruc-
ture fund it had listed in De-
cember to pay down more debt.
The funds listing raised $1.8
billion in December,
which helped cut the
debt down to 75 billion
baht ($2.32 billion), he
added.
True also planned to
cut the par value of its
stock, an accounting method to
help a company reduce accu-
mulated losses and enable it to
pay dividends, Noppadol said.
Concerns about Trues debt
burden prompted ratings agen-
cy Moodys to downgrade the
company, and its mobile unit,
and assign them with a negative
outlook.
True Corp expects to make a
prohL LIIs yeur uILer u neL Ioss oI
9 billion baht ($278.55 million)
last year, mainly due to gains
from a listing of the fund.
It also plans to invest 26.5 bil-
lion baht ($820 million) this
year, primarily to expand its
mobile and high-speed broad-
band Internet businesses as it
targets revenue growth of 7 to 9
percent.
.. -.~ . e .q.. . , .~e
~._.~.q._e.._ True Corp
PCL ._ e. . . - . ~ e. . ~~ ~
_., .:. _ ~~ .~ . ...| ...: q ~
._ . . , . ~. . ..: q~ . :..
._~:. ~..|..,.. ~...:
~q:q .. _e. . ~ . , . ._ q~ .~
.~~ ._.:_~:..._.
.. - ~. . ..:. .. .
Dhanin Chearavanont ..._
True Corp ._ .~ q . ., .q ee:
- .... ~. . ~ . ~ ~ .:.._ . . , .
. ~. .. . .. .:. _.. . . :.q, . . :.
._~: . ~. ..: .. _e. . Suphachai
Chearavanont ~ .~..:~.:.
~:. ._.:_~:..._.
True -qee:.:.~:. ._.:.
~. .. . . , .~. . . .q: .._. ._e
..,.- ....q.~ _.~q,
~~~ ..q.,._~:. Suphachai
~ ._.:_~:..._.
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
700 children taking part in the opening of
SMOHM.
Children taking part in the massive tooth-
brushing event.
Dr Myint Htein giving oral education to the
school children.
Dr. Myint Htein giving oral education pres-
entation to the school children.
Dr. Myint Htein giving oral education to the
school children.
MDA Vice President Professor Daw Swe Swe
Win giving an opening speech.
Opening of Signal Myanmar Oral Health
Month.
Signal and Members at the opening ceremo-
ny.
SMOHM
U Zaw Myo Hlaing and MDAs vice presi-
dent Professor Daw Swe Swe Win opening
the Signal Myanmar Oral Health Month.
Unilever Country Manager Ko Zaw Myo
Hlaing giving opening speech.
U Myint Swe, Chief Minister of Yangon Region Gov-
ernment, speaks at the ceremony. GE
Douglas E Sonnek, Political/Economic Chief, Em-
bassy of the United States of America, speaks at the
ceremony. GE
Jack Tan, Country Manager, GE Lighting for Sin-
gapore, Brunei & Myanmar, speaks. GE
(From L-R) Jack Tan,
Country Manager,
GE Lighting for Sin-
gapore, Brunei & My-
anmar, and Sims Teo,
Director, Krislite Pte.
Ltd, at the signing. GE
(From L-R) Jack Tan,
Country Manager, GE
Lighting for Singapore,
Brunei & Myanmar,
and Sims Teo, Director,
Krislite Pte Ltd, pose for
a photo. GE
(From L-R) Ching Leong Derek Ng,
Marketing Manager, SE Asia, GE
Lighting, Sims Teo, Director, Krislite
Pte. Ltd, Douglas E. Sonnek, Politi-
cal/Economic Chief, Embassy of the
United States of America, U Myint
Swe, Chief Minister of Yangon Re-
gion Government, Kyaw Moe Naing,
Managing Director, Krislite Pte Ltd,
Andrew Lee, Chief Country Repre-
sentative, GE Myanmar and Jack
Tan, Country Manager, GE Lighting
for Singapore, Brunei & Myanmar.
GE
GE Lighting and Krislite
Myanmar Distributor
Agreement Signing Ceremony
Signal Myanmar Oral Health Month (SMOHM) Launching Ceremony
60
th
Anniversary of Establishment of Myanmar,
Japan Diplomatic Relations
Performers at the show. Htet Aung Performers at the show. Htet Aung
Performers at the show. Htet Aung
A traditional dance performance. Htet Aung
Win & SPAM Auto Show
Cars at the display. Htet Aung
Win & SPAM executive gives his speech. Htet Aung
Models present a car. Htet Aung Ribbon cutting ceremony. Htet Aung
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
31
March 13-19, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
Myunmur Nutorul Sites Identied us Top
Priorities Ior World Herituge Nominution
Kyaw Min
T
wo natural heritage sites
in Myanmar Nat Ma
Taung National Park
in Chin state and the Indaw-
gyi Lake Wildlife Sanctuary
in Kachin state have been
recommended as priority can-
didates for future nomination
to UNESCOs World Heritage
List, the UNs specialised agen-
cy said.
Rising from the surround-
ing Chin Hills, Nat Ma Taung
National Park is renowned for
its extreme elevation gradient
and great beauty. Serving as
a refuge during the last glacial
period, the site is an alpine sky
island with a diversity of Him-
uIuyun oru und Is Iome Lo over
800 plant species, including a
rich variety of orchids, and sev-
eral endemic bird species.
Indawgyi Lake is one of the
largest lakes in Southeast Asia.
It provides habitat for 10 glob-
ally threatened bird species and
is of outstanding value for con-
servation of migrating water-
birds. The lake also contains
ImporLunL endemIc hsI und
turtle species, such as the Bur-
mese Peacock Turtle.
The recommendations
emerged from the National
Consultation Meeting organ-
ised by the Ministry of Environ-
mental Conservation and For-
estry and UNESCO last month
in the countrys capital Nay Pyi
Taw.
Dr Nyi Nyi Kyaw, director-
general of the Forestry Depart-
ment, said: Myanmar still does
not have any natural World
Heritage sites, yet there are sev-
eral sites with high potential.
The designation of World Her-
itage would provide opportuni-
LIes Ior prucLIcIng LIe eecLIve
protection and management of
these irreplaceable sites.
Participants from government
ministries, national and inter-
national NGOs and universi-
ties recommended the two sites
from among the seven that were
recently proposed for Myan-
mars World Heritage Tentative
List. The Tentative List is the
inventory of sites that Myan-
mar considers has potential for
future World Heritage listing.
A signatory to the World Her-
itage Convention since 1994,
Myanmar does not yet have any
sites inscribed on the List.
Dr Tim Curtis, chief of UN-
ESCO Bangkoks Culture Unit,
said: World Heritage provides
a framework for the highest lev-
el of international commitment
to the protection of sites which
are considered of Outstanding
Universal Value. Myanmar is
now taking an important step
forward in protecting its natu-
ral heritage in accordance with
World Heritage standards.
The consultation meeting was
conducted under the UNESCO
project Safeguarding Natural
Heritage in Myanmar within
the World Heritage Frame-
work, which is being support-
ed by the Government of Nor-
way through the Nordic World
Heritage Foundation.
TIe oLIer hve sILes wIIcI
have been proposed as hav-
ing potential for future natural
World Heritage inscription are:
the Northern Forest Mountain
Complex containing the snow-
capped Mt Hkakaborazi, which
rises to 5,880 metre; the Myeik
Archipelago containing over
800 islands surrounded by ex-
tensive coral reefs in the Anda-
man Sea; the Hukaung Valley
Wildlife Sanctuary, an impor-
tant habitat for globally threat-
ened wildlife, notably tigers and
Asian elephants; the Tanintha-
ryi Forest Corridor, the largest
remaining lowland evergreen
forest in mainland Southeast
Asia; and the Ayeyawaddy Riv-
er Corridor, home to the threat-
ened freshwater Irrawaddy Dol-
phin.
Indawgyi Lake in Kachin state.
W
a
h
g
y
i
Nat Ma Taung National Park in Chin state.
N
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D
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P
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