Myanmar Business Today

September 11-17, 2014
Myanmar Business Today

mmbiztoday.com
mmbiztoday.com September 11-17, 2014 | Vol 2, Issue 36 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Contd. P 12...
Inside MBT
Your Myanmar Taxes (Part
IV) Corporate Tax P-7
SLuLe oI ServIced Om ce MurkeL
in Yangon (Part II) P-23
Myunmur Prods Chinu to BeeI Lp Rice Ixports
May Soe San &
Tin Mg Oo
M
yanmar can ex-
port up to 2 mil-
lion tonnes of
rice this year as it makes
progress on tapping the
rising demand in China
and pushing its giant
neighbour to lift an im-
port ban, industry insid-
ers say.
The Myanmar Rice Fed-
eration (MRF) recently
met with Chinese Embas-
sy om cIuIs In Yungon In
a bid to start negotiation
regarding legalising rice
imports into China from
Myanmar. The meeting
was prompted by a cam-
paign led by the Chinese
government seizing rice
imported from Myanmar
in the Chinese border
town of Shweli and other
places that nearly halted
rice trade across the bor-
der, hurting rice traders
in Muse, the border town
on Myanmar side.
Rice from Ayeyarwaddy,
Bago, Sagaing, Magwe
and Yangon regions is
mainly exported through
Muse, with an estimated
80 percent of Myanmars
total rice exports going to
China. However, while it
is legal for Myanmar trad-
ers to export to China, it is
illegal for Chinese buyers
to import the rice.
We need an agreement
on health inspection.
Then well try to get a deal
on export quota and tar-
I-Iree exporLs, U Aung
Than Oo, president of
Myanmar Rice and Pad-
dy Traders Association
(MRPTA), told Myanmar
Business Today.
A Chinese team of four
experts, including the
deputy director general
of the Administration of
Quality Supervision, In-
spection and Quarantine
(AQSIQ) visited Myan-
mar during the last week
of August, and inspected
the production and dis-
tribution chain of the rice
industry as part of the ne-
goLIuLIon Ior om cIuI rIce
exports.
The team said it has
found satisfactory results
and also that rice farm-
ers in Yangon and Bago
regions as well as Nay Pyi
Taw are using a minimal
amount of chemical ferti-
lisers and pesticides.
The agreement to legal-
ise rice exports to China
Is seL Lo be hnuIIsed wILI
the Chinese Minister for
Agriculture during the
ASEAN Agriculture Min-
isters Meeting, which will
be held from September
20 to 26 in Nay Pyi Taw,
according to MRF. After
the agreement is signed,
a yearly export quota will
be agreed on by the two
sides, and exports will fol-
low before the end of the
year.
We have been export-
ing rice to China so far
based on the mutual un-
derstanding but we cant
exporL om cIuIIy unIess
theres a deal with AQ-
SIQ. Right now we cant
do anything if they block
exports on the grounds of
low quality, U Chan Thar
Oo, chairperson of Muse
Rice Wholesale Board,
told Myanmar Business
Today.
Contd. P 12...
Myanmar Summary
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The Missing Nine Million:
Does it Matter? P-4
mmbiztoday.com
2
LOCAL BIZ
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
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Bosiness News in BrieI
Auto associ ati on to set up publi c company
Myanmar Automobile-Makers and Distributors Asso-
ciation will set up a public company with a startup capi-
tal of K5 billion ($5 million), contributed by 50 leading
members, local media reported quoting chairman Soe
Tun of the Association. Soe Tun said the company plans
to raise up to K20 billion ($20 million) through a public
oerIng.
Beans and pulses expor t r each $399 mi lli on
Myanmar garnered about $399.54 million by export-
ing 520,000 tonnes of beans and pulses from April 1
to August 15, according to the Ministry of Commerce.
Green gram and green peas, also known as Mung beans,
were the top export items in the category. Export via
sea routes totalled $296 million, while through land to-
talled $102.9 million.
Yangon to i ncr ease taxes on li quor maker s,
wholesaler s
The regional parliament in the commercial city of
Yangon is planning to increase taxes on local manufac-
turers and wholesale distributors of foreign brand liq-
uors by between 200 and 400 percent, a move that will
impact the retail prices of alcoholic drinks, local media
reported referring to industry sources.
Ei ght compani es gi ven the go-ahead to i mpor t
LNG
The Ministry of Energy ministry gave permission to
eIgIL compunIes Lo ImporL IIquehed nuLuruI gus (NG),
local media reported. The eight companies are Asia
World, Myanmar LPGG, Universal Energy, Kaung Htet
Myunmur, Yuun Yuun, nhnILe BenevoIence TrudIng,
Standard Family and Forward General Trading.
MEB to gr ant collater al-fr ee loans to SMEs
Myanmar Economic Bank (MEB) is planning to dis-
burse loans to small-and medium-sized enterprises
(SMEs) without collaterals, deputy minister for Finance
Dr Maung Maung Thein said. Under directives from the
President, Myanmar Insurance Enterprise also imple-
mented a loan disbursement scheme with private com-
panies over the past two months.
Gap I nc r eveals pr oblems wi th wor ki ng condi -
ti ons at Myanmar factor i es
An audit conducted for American retail giant Gap
Inc at two factories in Myanmar has discovered sev-
eral problems for workers that the retailer says it has
already begun to address. The report was submitted to
the US Embassy in Yangon, where it is posted online,
and conducted by Amherst, MA-based labor organi-
zation Verit. Workers reported abuse by supervisors,
inconsistent rules and enforcement, unpaid or inade-
quuLeIy puId overLIme, InudequuLe LIme o, und severuI
health and safety violations, according to Verit. The
compuny unnounced In June LIuL IL wouId be LIe hrsL
U.S. retailer to begin having clothes made in Myanmar.
South Kor ea pr omotes i nvestment i n Myan-
mar
Om cIuIs Irom LIe pubIIc und prIvuLe secLor In SouLI
Korea and a delegation from Myanmar discussed the
investment potential of the Southeast Asian nation in
Seoul last week. They met organisers from the ASEAN-
Korea Center and the Korea Chamber of Commerce and
Industry at the 2014 Investment and Business Environ-
ment Seminar on Myanmar. South Korea is already
Myanmars fourth-largest foreign direct investor with
over $500 million poured into the country as of June.
Cehu Pocipc to lounch direct ight to Mgon-
mar
TIe Cebu PucIhc AIr, LIe PIIIIppInes` IurgesL Iow-cosL
currIer, wIII IuuncI dIrecL IgIL Lo Myunmur`s Lwo muIn
cities Yangon and Mandalay in early 2015, airline
sources suId. TIe dIrecL IgIL Is pIunned In LIe wuke
of increased business undertakings in the Southeast
Asian nation initiated by most of the Philippine citizens
sLurLIng mId LIIs yeur. Cebu PucIhc AIr Is seL Lo oer
LIree IgILs u week Irom MunIIu Lo Yungon und Mundu-
lay. In December 2013, Myanmar and the Philippines
signed an agreement on mutual visa exemption for the
two countries visitors, updating their 1979 Air Services
Agreement. There is a total of 24 international airlines
currenLIy yIng Lo Myunmur wILI seven oLIer uIrIInes
operating domestically.
Myanmar Summary
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mmbiztoday.com
3
LOCAL BIZ
Myanmar Summary
Kyuokphyo SIZ Shures to Go on Sule
Htun Htun Minn
T
he company formed
by local business-
es to develop the
Kyaukphyu special eco-
nomic zone (SEZ) will
start selling its shares to
the public later this year,
a senior executive of the
company said.
The shares of Myanmar
Kyaukphyu SEZ Public
Holding Co Ltd will be
sold at a price of K10,000
each, U Tin Aung, secre-
tary of the company, said.
However, exact details
including the number of
shares or when they will
be sold were not made
available.
We are discussing the
sale of shares to the pub-
lic which will be carried
out later this year. Well
into its third year, the
project is attracting pub-
lic attention, Kyaukphyu
SEZ monitoring commit-
tee chairman U Ba Shwe
Today.
Kyaukphyu SEZ is
planned to be developed
through collaboration
between local and for-
eign private businesses.
Three developers for the
port, industrial and con-
struction projects respec-
tively will be selected in
December, according to
U Myint Thein, chair of
Kyaukphyu SEZ manage-
ment committee, and also
the deputy director of the
Ministry of Rail Trans-
portation.
The SEZ public hold-
ing company, which was
given the go-ahead by the
Directorate of Investment
and Companies Admin-
istration (DICA) in July,
will drive the SEZ devel-
opment process through
engaging in construction
and tourism operations,
industrial services, water
infrastructure and resi-
dential development pro-
jects and deep-sea port
construction, according
Lo LIe om cIuI unnounce-
ment.
The SEZ management
committee has said the
developers must make
sure to submit project
plans and designs by 2015
to carry on with the pro-
ject development.
Rakhine state has
shortages of water, elec-
tricity and transportation
infrastructure which need
to be developed on a pri-
ority basis, U Ba Shwe
said.
However, he said as the
sLuLe Is prone Lo conIcL,
the public is expected to
take a wait-and-see ap-
proach for about four
years.
They will participate
only when they are con-
hdenL ubouL prohLs. We
have to see if this project
can pique as much inter-
est as Thilawa SEZ, he
added.
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mmbiztoday.com
LOCAL BIZ
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Contd. P 8... Contd. P 8...
The "Missing Nine Million: oes it Mutter?
T
he provisional re-
sults of Myanmars
2014 census, re-
leased on August 30,
show that Myanmar has
a population of 51.4 mil-
lion, nearly 9 million few-
er than the governments
long-standing estimate of
60 million.
Most analysis of the pre-
liminary results of Myan-
mur`s hrsL census In over
30 years remains focused
on where the missing 9
million people are. Ques-
tions and hypothesis,
from mass exodus during
the years of political up-
heaval to the government
overestimating of the
population count, con-
tinue to emerge attempt-
ing to explain the newly
discovered population
dehcIL.
But does the discovery
that Myanmars popula-
tion stands at just over
51 million really matter?
Yes, a little, but in reality
its not a devastating blow
to the country and panic
and criticism of the gov-
ernment unwarranted.
Perhaps most interest-
ing and troubling is
the high degree of mis-
understanding as to what
a lower population count
means for the countrys
future and economic de-
velopment.
The lower population
calculation will have some
real impact, but mostly it
is an issue that will impact
upon those too ready to
accept data at face value
than anything else, Dr
Sean Turnell, associate
professor of economics
at Australias Macquaire
University and an expert
on Myanmars economy,
Today.
Aundrea Montao &
Htun Htun Minn
I s an i ncr ease i n GDP
per capi ta i mpor tant?
The increase in per
capita income, due to the
population being fewer
than previous estimates,
muy be u hgure LIe gov-
ernment can brandish
around, U Phone Myint
Aung, a member of the
upper house of parlia-
ment, told Myanmar
Business Today.
However, this logic ig-
nores that fact that GDP
per capita is an imperfect
measure, and does not
account for income dis-
tribution or inequality,
which plays into econom-
ic measures of consump-
tion.
SuperhcIuIIy, peopIe
will say that it will in-
crease per capita GDP
by decreasing the denom-
inator of the per capita
GDP equation that is
aggregate GDP/popula-
tion.
However, the numera-
tor itself is just a very im-
perfect estimate, and one
that is not independent
of the population number
anyway. For instance, one
of the key components of
aggregate GDP, aggregate
consumption, is based
on a representative con-
sumption sample, which
is then extrapolated ac-
cording to the estimated
population number. Like-
wise though, some many
other parts of the aggre-
gate GDP number are
just estimates, including
measures of Myanmars
sIgnIhcunL 'underground`
economy, Turnell said.
Another top govern-
menL omcIuI, speukIng
under the condition of
anonymity, said that as
GDP per capita increases,
Myanmar may graduate
from the least developed
countries (LDC) status
and enjoy subsequent
benehLs.
However, Turnell said
shedding the countrys
LDC status is much more
complicated than increas-
Ing u sImpIe economIc hg-
ure.
Myanmars status as an
LDC should not change.
The country was very
poor a week ago, and it is
very poor today.
He said, In any case,
LDC status is a process
that involves several UN
agencies and the like. So,
even if people shut their
ideas to the countrys re-
alities, it would take a
long time for the status to
change.
It is also unlikely that
there would be any sig-
nIhcunL poIIcy cIunges
for lending organisations
like the World Bank, the
Asian Development Bank
and the International
Monetary Fund (IMF).
Myanmar remains
eligible for the IMF con-
cessional lending to low-
income countries, Yu
Ching Wong, IMF resi-
dent representative in
Myanmar, told Myanmar
Business Today.
In broad terms, a mem-
ber country is eligible for
Iow-IncomIng hnuncIng II
its annual per capita GNI
is below the International
Development Association
(DA) operuLIonuI cuL o
[$1,195 in FY 2013] and
they do not have capac-
ity to access international
hnuncIuI murkeLs on u
durable and substantial
basis, she added.
Consumpti on
Some believe the new
popuIuLIon hgures cun be
devastating to the eco-
nomic development of
the country. This is based
on the rationale that if
the population is lower,
then consumption has de-
creased and will detract
from the countrys attrac-
tiveness to foreign inves-
tors.
A lower population can
impact foreign invest-
ment because with fewer
people consumption will
decrease, while a larger
population can contribute
to rapid market devel-
opment and also attract
more foreign invest-
ments, U Myint Kyaing,
director general of the
Department of Popula-
tion under the Ministry of
Immigration and Popula-
tion told Myanmar Busi-
ness Today.
Another top government
omcIuI, speukIng under
the condition of anonym-
ity, also said that a lower
population will have the
impact due to decreased
consumption. He said,
Poverty is fuelled by the
lack of consumption. Low
consumption can lead
to a drop in exports and
foreign investment. A big
population can attract in-
vestments with its spend-
ing power. Chinas devel-
opment is largely owed to
its population.
However, the new
popuIuLIon hgure Ius no
impact on Myanmars
currenL consumpLIon hg-
ures the fact is that 51.4
million people were con-
suming before, and those
same 51.4 million people
continue to consume to-
day. Foreign investors
might need to recalculate
to accommodate their
country strategies, but
rest assured Myanmar is
a piece of a larger ASEAN
investment strategy for
most investors such as
the ASEAN Economic
Community, which is ex-
pected to start to come
online in 2015.
Also, in economic terms
the consumption function
is far more complex than
u popuIuLIon hgure. n
fact, it is well noted that
poor individuals actually
consume more than those
in higher income catego-
ries. This is because to
IuIhI LIe busIc needs oI un
individual they must use
the majority, if not all or
use debL Lo hnunce LIeIr
daily living expenses
hence they consume more
whereas higher income
people have the luxury to
save and possess dispos-
able income.
The other side of con-
sumption that adds lay-
ers of complexity is the
consumption function
takes into account an in-
dividuals propensity to
suve - or on LIe Ip sIde:
their ability to generate
disposable income. So
while it is true that fewer
people are consuming
at a given time in Myan-
mur, eecLIve poIIcy musL
ask question why people
consume, and what keeps
them from consuming.
One reason individuals
do not spend is because
they lack security in being
able to pay for emergency
Myanmar Summary
PeopIe cross a bridge in downtown Yangon.
M
in
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The lower population cal-

culation will have some
real impact, but mostly
it is an issue that will im-
pact upon those too ready to
accept data at face value than
anything else.
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mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
Gov't Iuses Restriction on
Ioreign Iconomic Activities
Aye Myat
T
he Myanmar In-
vestment Com-
mission (MIC) has
eased some restrictions
on economic activities for
foreign businesses, re-
moving 11 items from the
prohibited list of econom-
ic activities previously de-
clared, according to the
commission.
These economic activi-
ties lifted for foreigners
include jade and gem-
stone prospecting, explo-
ration and production,
small and medium scale
mineral production and
distribution of newspa-
pers, magazines and jour-
nals in Burmese and other
national ethnic languages.
The commission also
cut the list of economic
activities previously al-
lowed only in the form of
joint venture with local
Myanmar citizens from
42 items to 30.
The commission has so
far during this year permit-
ted nearly 30 projects for
investment by local entre-
preneurs, while 60 for in-
vestment by foreigners.
SInce June, om cIuI hg-
ures show that Myan-
mar attracted investment
from 34 countries, total-
ing $46.71 billion.
Myanmar Summary
Munduluy Airport to Become Logistics Hob
Htun Htun Minn
M
andalay Inter-
national Airport
will be upgraded
into a logistics hub, ac-
cording to the Depart-
ment of Civic Aviation
(DCA).
The upgrade is expected
to improve the airport so
that it can provide cargo
and distribution services
for international and do-
mestic goods.
First, the airport build-
ings and terminals will
be upgraded. This will be
followed by preparation
eorLs Lo provIde curgo
service, said U Win Swe
Tun, director general at
DCA.
Mitsubishi-Jalux, a Jap-
unese hrm, uIong wILI ILs
Myanmar partner, SPA
Project Management, has
been awarded the tender
to upgrade and operate
the airport for a 30-year
term.
We have sent the pro-
posal for the project to
the Myanmar Investment
Commission. We are sure
it will be approved within
the year, U Win Swe Tun
said.
The total area of Man-
dalay International Air-
port is 17,544 acres, while
3,682 acres are covered
by runways and buildings.
After the upgrade, the air-
port will have the capacity
to serve 3.5 million pas-
sengers annually. Accord-
ing to DCA, the project is
expected to cost K10 bil-
lion ($10.3 million).
The department plans to
conduct upgrades to sev-
en of Myanmars airports
In LIe zo1q-1 hscuI yeur.
This includes Thandwe
Airport in Rakhine state,
Tachileik Airport, Naung
Mon and Maisat Airports
in Shan state, Loikaw Air-
port in Kayah state, Kalay
Airport in Sagaing region
and Koe Koe Island Air-
port in Yangon region.
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mmbiztoday.com
LOCAL BIZ
6
Myanmar Summary
Jobseekers Iind it imcolt to
Secore Work throogh Ministry
Htun Htun Minn
T
he Ministry of La-
bour, Employment
and Social Security
wus ubIe Lo hnd work Ior
only 40 percent of unem-
ployed individuals regis-
tered with the ministry for
job placement assistance
In zo1-1q hscuI yeur, u
minister said.
Over this period, the
ministry registered on
average 75,000 people
for employment assis-
tance every month, with
the government able to
hnd empIoymenL Ior onIy
30,000 individuals per
month, union minister for
labour U Aye Myint said.
During the same period,
the government recorded
that over 3 million My-
anmar citizens worked
abroad, with the ministry
hndIng empIoymenL Ior
only 5,000 of those indi-
viduals.
You have to try yourself
to land a decent job over-
seas. The governments
overseas job opportuni-
ties are mostly for basic
workers and are not avail-
able for skilled labor, Ko
Yan Paing who is working
in Singapore, told Myan-
mar Business Today.
Strong connections are
required to access skilled
job positions abroad, he
added.
Despite the relative in-
crease in job opportuni-
ties in recent years, many
people without a network
must increasingly rely
on employment agen-
cIes, wIIIe oLIers hnd
work based on the recom-
mendation of family or
friends.
Therefore, many people
looking for job are in need
of government guidance
in terms of skills training,
one banking manager ob-
served.
Six out of 10 young peo-
ple in Myanmar are facing
unemployment, accord-
ing to a report released by
the Myanmar Youth As-
sociation, which calls on
the government to quickly
address the many chal-
lenges facing the coun-
trys youth.
The report was prepared
based on surveys conduct-
ed targeting local young
adults within the age range
of 16 to 35 from Yangon
and Ayeyarwaddy regions,
with data covering the
years of 2012-2014.
We saw many unem-
ployed people during the
survey period. If this con-
tinues, the future of the
country will not be that
encouraging, Ko Zwe
Yan Naing, chair of the
Myanmar Youth Associa-
tion.
A high unemployment
rate will be a drag on the
economy. The poverty sit-
uation in the country will
deteriorate further com-
pared to other countries
in the region, he added.
Socioeconomic short-
comings such as issues
of land grabbing, poor
transportation and lack
of information are help-
ing to drive the high un-
employment rate among
young people. Young
people who are trying to
hnd u wuy ouL oI LIe bIeuk
situation are met with in-
creased risks like human
LrumckIng or engugIng In
illicit trade, according to
the report.
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Gov't to Istublish Three Wholesule Murkets
Phyo Thu
T
hree large whole-
sale commodity
markets are to be
established in Yangon
and Mandalay, the two
commercial cities of My-
anmar, and Muse, the
countrys biggest border
trading hub, a minister
said.
The Ministry of Com-
merce is working towards
setting up the commod-
ity markets before 2015,
when the ASEAN Eco-
nomic Community (AEC)
wIII come InLo eecL, uc-
cording to U Win Myint,
union minister for com-
merce.
A total of 52 whole-
sale markets have been
opened so far. We are try-
ing to develop these mar-
kets as well as to help spe-
cialised companies, he
said at the annual event
of the Union of Myanmar
Federation of Chambers
of Commerce and Indus-
try (UMFCCI).
The ministry is also
planning to establish an
international trade center
in cooperation with the
state and regional gov-
ernments, which will help
increase trade volume by
linking the country with
global trade networks.
When the AEC is imple-
mented, local businesses
will be able to access the
over 600 million popula-
tion of the ASEAN mar-
ket, but will also have to
prepure Ior sLI compeLI-
tion from other business-
es in the region, U Win
Myint said.
The government needs
to deliver on its promises.
Although they are tout-
ing changes, we are not
seeing them take shape.
Trude ows ure noL guIn-
ing speed and a major ob-
stacle is that it takes too
long to engage with gov-
ernment departments,
said U Zaw My0 Aung
from the Myanmar Inter-
national Freight Forward-
ers Association.
Although licensing pro-
cessing is getting faster,
the Department of Com-
merce and Customs De-
partment are apparently
not coordinating in the
process of establishing
prices and making sepa-
rate decisions, he added.
Yangon, Mandalay and
Muse are chosen as po-
tential places for whole-
sale markets as the places
have a wide reach to both
sea and land trade chan-
nels, and the potential for
increasing cross-border
trade, experts say.
Myanmar Summary
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mmbiztoday.com
7
LOCAL BIZ
Myanmar Summary
Yoor Myunmur Tuxes {Purt IV) - Corporute Tux
W
ere sometimes
contacted by
entrepreneurs
who want to start a busi-
ness in Myanmar. Often
LIe pIun Is Lo y InLo Yun-
gon, and without any con-
tact with the Myanmar
government, get a hotel
room and start operating
a business out of it. The
reuIILy Is mucI dIerenL.
In fact, the Myanmar
authorities dont allow
you to start a business in
Myanmar without a cor-
porate presence. Your
options for this are quite
simple:
A Myunmur compuny
owned by its shareholders
and operated by its board
of directors.
A bruncI oI u IoreIgn
company, which is just a
locally registered address
of a foreign company.
A represenLuLIve omce,
which is similar to a branch
but is not expected to pro-
duce u prohL. AL presenL
foreign banks and insur-
ance companies are limited
Lo represenLuLIve omces.
The procedures for reg-
istering all of the above
are similar. For foreign
investors they take several
months to create, but are
allowed to operate on a
temporary basis pending
hnuI upprovuI, mukIng LIe
delay easier to work with.
Lets assume your ob-
jecLIve Is IuvIng prohLs,
so you dont want a rep-
resenLuLIve omce. How
do you choose between a
branch and a company?
This decision is largely
based on the tax rate. For
compunIes, neL prohLs ure
taxed at 25 percent while
branches are taxed at 35
percent.
Given the higher tax
rate, why would you ever
want a branch? Branches
are easier and cheaper to
operate. With a branch
you dont have to have
an annual general meet-
ing. Additionally, the gov-
ernment never expects a
bruncI Lo muke prohLs,
so it could show a loss or
break even for as long as
you want it to.
If you want to enter
the market and have a
presence in the country
James Finch &
Kyaw Swa Myint
A worker carries a piIe of Kyat banknotes at the ofce of a IocaI bank
in Yangon.
S
o
e

Z
e
y
a

T
u
n
/
R
e
u
t
e
r
s
without the expectation
oI prohLs, IL mIgIL be up-
propriate to register as a
branch. For example lets
say you want to maintain
a presence in Yangon and
hire a sales team. If your
sales team meets with
customers but those cus-
tomers are buying direct
Irom un osIore omce
rather than the Yangon
omce, LIe bruncI regIsLru-
tion can be used to facili-
tate this by allowing you
Lo IIre IocuI sLu, open un
omce, und geL your expuL
suIes sLu sLuy permILs.
Keeping in mind the 10
percent lower tax rate for
companies, if you want
Lo Iuve reuI prohLs you`II
want to register as a com-
pany and not a branch.
Also, for any kind of a
big operation manufac-
turing, infrastructure or
telecoms operation, for
example the Myanmar
government may require
you to have a company
rather than a branch.
There is another con-
sideration. Youve prob-
ably heard of the Foreign
Investment Law of 2012
(FIL). Under this law
LIere Is u hve-yeur Lux
holiday, which means that
if you register under this
law your business doesnt
puy Luxes Ior LIe hrsL hve
years of its operation if
its the kind of investment
LIuL quuIIhes.
The FIL doesnt explic-
itly mention branches or
represenLuLIve omces, buL
the rules to the FIL men-
tion that all registrants
must have companies.
In practice the Myanmar
Investment Commission
MIC allows some indus-
tries such as oil and gas
to operate under the FIL
as branches. The taxes af-
Ler LIe hve-yeur Lux IoII-
day are the same for other
companies under the FIL
- z percenL oI neL prohLs.
Now every industry is
uIIowed Lo Luke LIe hve-
year tax holiday. The
MIC has just issued a no-
LIhcuLIon LIuL LIere ure
business activities which
wont be allowed to claim
the tax holiday. Heres a
sample of the barred in-
dustries: any company
that is involved with the
production or selling of
alcohol and cigarettes;
companies that sell gaso-
line, diesel oil and fuel;
natural resource extrac-
tion (excludes oil and gas
exploration and drilling);
and building construction
for resale.
Doing business in My-
anmar is not a simple
process, and you should
carefully consider your
options before entering
the Myanmar market.
James Finch is a part-
ner at DFDL Myanmar
Limited, resident in Yan-
gon. Kyaw Swa Myint is
an advisor at DFDL My-
anmar Limiteds Yangon
Tax Business Unit.
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mmbiztoday.com
LOCAL BIZ
8
Myanmar Summary
From page 4...
From page 4...
Truders Seek Gov't Assistunce to
LiIt Chinese Bun on Goutskin Ixport
May Soe San
T
raders have sent a
request to the Min-
istry of Commerce
(MOC) to facilitate in re-
moving a Chinese ban on
hne gouLskIn IeuLIer ex-
ports from Myanmar to
Yunan province in China,
U Tun Lin Soe, general
secretary of Muse-Nant-
kham border trading hub,
said.
The request for an ex-
port licence for the prod-
uct, which has been sub-
mitted in May, has not
met with any responses
so far, while the govern-
ments support is essen-
tial to lift the Chinese ban
on the product, U Tun Lin
Soe said.
This product has
been omcIuIIy exporLed
through the border chan-
nel in the past. But later
it was banned by the Chi-
nese central government
on the grounds of bacte-
rial contamination and
foot-and-mouth disease,
said U Htay Oo from the
border trading hub.
Fine leather products
are at risk of containing
germs and also chemicals
which are used to make it
last longer, according to
U Toe Aung Myint, direc-
tor general of the Depart-
ment of Export Promo-
tion from MOC.
The ban from China
claiming it contains food-
and-mouth disease risks
can be lifted only through
negotiations between the
two sides, he added.
We Iuve hne IeuLIer
products ready to export
to Yunnan, but we havent
received an export licence
yeL so we wunL LIe om-
cials to take the problems
of traders into account,
U Tun Lin Soe said.
Rough goatskin, pro-
duced by mixing goat-
skins with salt, has been
exported to China in the
past through the coopera-
tion between the govern-
ments now dissolved Ag-
ri-business Department
and private companies.
China is a major market
for goatskin leather, but
requIres u cerLIhcuLIon
clarifying the product is
clear of germs that cause
foot-and-mouth disease
or bIrd u Irom LIe Ive-
stock Breeding and Vet-
erinary Department in
Myanmar.
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expenses, such as a trip to
doctor, loss of income or
uny oLIer unexpecLed h-
nancial burden causing
them to save for a rainy
day, which decreases the
potential for disposable
income. If the Myanmar
government wants indi-
viduals to consume more,
LIey need Lo creuLe eec-
tive social safety nets that
increase certainty in an
individuals overall well-
being. This might include
schemes for health and
unemployment insur-
ance. Also, developing a
functioning and trusted
hnuncIuI sysLem Is vILuI Lo
individual security.
While it is true that
Chinas population is a
factor in its development
prospects its rapid devel-
opment has never been
a function of domestic
consumption, rather it
Is due Lo LIe eorLs oI un
aggressive export-orient-
ed growth strategy. Get-
ting Chinas population
to consume continues to
be a complex mix of ap-
propriate social and eco-
nomic policy combined
with increased capacity
in domestic governance
the same will be true for
Myanmar.
If Myanmar wants to
increase consumption to
a level that will have real
economic impact, then fo-
cus must be diverted away
Irom popuIuLIon hgures
and placed on increasing
incomes.
So what does matter ?
If GDP per capita and
consumption are not im-
portant factors, then what
does matter in calculating
the economic future of
Myanmar? Productivity.
In order for productivity
to increase and hence
incomes the govern-
ment should focus their
eorLs on dIrecLIng In-
vestment to sectors that
will have high impact
namely the agriculture
sector, which according
to the CIAs World Fact
Book employees over 70
percent of the popula-
tion, and manufacturing,
which is a vital sector
needed to absorb the in-
crease in city populations
due to rural-urban migra-
tion.
In order to do this, more
priority should be placed
on the development of
appropriate legislation to
create a friendly business
environment that attracts
foreign investment from
a broad base of countries
this includes making
eorLs Lo Increuse InvesL-
ment from western coun-
tries.
Movi ng for war d
At the end of the day,
the revelation that Myan-
mars population is nine
million people fewer than
estimates once provided
has virtually no impact
on the countrys pros-
pects for development. If
anything, the census of-
fers more legitimacy in a
country that for the past
50 years has produced
virtually no statistical
data.
The results of the 2014
population and housing
census, especially given
the long lag since the last
census was conducted in
1q8, ure sIgnIhcunL In
providing important in-
formation to form a more
accurate snapshot of My-
anmar today. Accurate
and timely social-eco-
nomic data are essential
inputs to policymaking
and monitoring develop-
ment progress, Yu Ching
Wong said.
The government has the
opportunity to now use
LIIs duLu Lo creuLe eec-
tive economic and social
policy that to create a
muILIpIIer eecL LIuL In-
creases productivity, con-
sumption and long-term
economic growth.
Yu Ching Wong said:
Foreign investors will
continue to be attracted
Myanmars status as
an LDC should not
change. The country
was very poor a week
ago, and it is very poor to-
day.
by Myanmars long run
growth potential, which
remains substantial with
its rich natural resources
and low labour costs. In-
vestors will generally be
more attracted to and
conhdenL Lo operuLe In u
country with macroeco-
nomic stability and a con-
ducive climate for doing
business.
R
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s
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mmbiztoday.com
LOCAL BIZ
9
Myanmar Summary
Yungon Gov't to Collect Luboor
utu to Set Minimom Wuge
Htun Htun Minn
T
he Yangon regional
government said
it plans to collect
data on the earnings and
expenses of labourers liv-
ing in townships that con-
tain industrial zones in a
bid to set up a minimum
wage.
The data collection will
be completed within one
month, and will empha-
sise basic information
such as household income
and the number of house-
hold members, U Zaw Aye
Maung, Rakhine ethnic
minister of Yangon re-
gional government told a
session of Yangon region-
al parliament.
We will collect data on
how high the living cost is
In specIhc ureus oI Yungon
and how much the labour-
ers earn. Later the data
will be submitted to the
national assembly, which
will use this to establish
a minimum wage, U Zaw
Aye Maung explained.
Yangon regional gov-
ernment and the Ministry
of Labour, Employment
and Social Security will
work together to collect
data in 14 townships of
Yangon that have indus-
trial zones, he added.
The minister revealed the
plan to collect data, in his
response to the question
of U Soe Win, a member
of the regional parliament,
over the conduct of the re-
gional government to solve
labour issues including se-
curing compensation and
taking legal actions.
Adopting a minimum
wage standard is very
important. Many people
have to work hard for
very little returns. Many
factory workers earn only
K 1,000 ($1.1) a day and
some earn even less, U
Htay, an attorney work-
ing for the rights of work-
ers, told Myanmar Busi-
ness Today.
The minimum wage law
was enacted on March
22 last year with the by-
laws laid down on July
12, 2013. The Ministry
of Labour, International
Labour Organization and
other Non-Government
Organizations, employers
and labour union lead-
ers are frequently hold-
ing meetings regarding
the adoption of minimum
wage and committees are
also being formed.
The ministry has es-
tablished a temporary
minimum salary stand-
ard of K56,700 ($58) per
month for industrial zone
workers, along with the
workers right to enjoy
additional bonuses such
as general allowances
and no-leave bonus. The
labourers have asked for
a minimum wage of K
7,000 ($7.2) per day.
Daw San San Nwe, Yan-
gon regional minister
Ior hnunce, requesLed u
budget of K5.506 million
for the allowances, trans-
portation and document
fees for the data collec-
tors, K798,000 for train-
ing and K6.59 million to
cuLer Lo sLuLe omcIuIs und
guesLs In omcIuI IuncLIons
relating to the issue.
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mmbiztoday.com
LOCAL BIZ
10
Purumi Inergy Signs eul on
Two Onshore Oil Blocks
May Soe San
Htun Htun Minn
P
arami Energy
Group has signed
production sharing
contracts for two onshore
oil blocks with the Myan-
mar Investment Commis-
sion (MIC), the groups
cIIeI operuLIng omcer Yup
Kwong Weng said.
Parami Energy group
will enter into a partner-
ship with Pakistans Pe-
troleum Exploration (Pvt)
Limited (PEL) and UK-
based Siren Exploration
and Production as a local
partner to operate on the
oil blocks where Parami
will have 30 percent stake
und LIe purLner hrms wIII
hold the rest.
Our company will con-
duct EIA (Environmental
H
igh quality taro
being cultivated
in Chin state has
the capacity to accom-
modate up to 200,000
Lonnes oI producL Lo IuIhI
the increasing demand in
countries such as Japan,
Korea, China and Thai-
land, a minister said.
Taro, native to Southern
India and Southeast Asia,
is a common name for the
corms and tubers of sev-
eral plants in the Araceae
family. Of these, Coloca-
Impact Assessment) and
SIA (Social Impact As-
sessment). There wont be
any complication in get-
ting the locals consent.
But we have to be extra
careful as a foreign com-
pany is involved, U Ken
Tun, founding chairman
und cIIeI execuLIve omcer
of Parami Group said.
The cost of the project
is estimated to be 20 per-
cent higher than previ-
ous projects as it aims to
settle the concerns of the
locals prompted by the in-
cIusIon oI u IoreIgn hrm,
he added.
The two oil blocks are
PSC O, which is located
near Pathein, capital of
Ayeyarwaddy region, and
PSC J, which stretches
from the town of Mudon
in Mon state to Pha-An,
capital of Kayin state.
Founded in 2014, the
group Ius omcIuIIy ex-
panded its business into
oil and gas industry in
2009 and currently focus-
es on oil and gas, energy
and construction sectors.
Chin Stute's Turo Hus
Bigger Ixport Potentiul: Minister
sia esculenta is the most
widely cultivated.
Due to low demand, the
taro produced in Chin
state is not exported to
India or other regions
within Myanmar. There-
fore, local traders should
connect with the Myan-
mar Fruit, Flower and
Vegetable Producers and
Exporters Association
In order Lo hnd suILubIe
markets for the product,
U Ohn Than, deputy un-
ion minister for agricul-
ture and irrigation, said.
The Agriculture De-
partment should promote
cultivating high-quality
variety taro as a means to
commercialise the prod-
uct, he said.
Production costs for one
acre of taro ranges from
K300,000 to K500,000,
while earnings from one
acre can range from K1
million up to K1.5 million
depending on the yield.
Its not only taro, but
we are having a hard time
selling other crops be-
cause of scarce demand,
which is worsened by the
low incomes of the poor
and hard-to-access trans-
portation networks, said
Ko Victor, a farmer from
Htantalan township in
Chin state.
Total Taro cultivation
area in Chin state dur-
Ing zo1-1q hscuI ureu
stood at 315 acres in Te-
dim township, 1,162 acres
in Tonzan, 150 acres in
Kyeekha township, 235
acres in Htatalan town-
ship, 65 acres in Phalam
township, 10 acres in
Reed Kawda township, 99
acres in Hakha township
and 28 acres in Kanpatlat
township.
The total taro cultiva-
tion area is 2,562 acres in
the state according to the
hgures Irom LIe MInIsLry
of Agriculture and Irriga-
tion. Among them, 1,687
acres were planted solely
with taro while in the oth-
er 875 acres taro is grown
along with other crops
in a multiple cropping
method, according to the
ministrys data.
Due to an archaic or-
dinance issued in 1967,
where the land tax rate
is charged at only K1 per
acre of farmland in Chin
state, only K1,687 in tax
revenue is collected per
year from the 1,687 acres
oI Luro heIds.
People of Chin state pri-
marily participate in the
subsistence farming of
taro, sweet potatoes and
some varieties of yams
providing ample opportu-
nity for the commerciali-
sation of agriculture in
the state.
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Myanmar Summary
Myanmar Summary
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ChieI Operating OIfcer Yap
Kwong Weng ~ ~q:.~
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mmbiztoday.com
LOCAL BIZ
11
Tin Mg Oo
A
night market is to
be set up in Ma-
habandoola Park
street in a bid to promote
small food vendors and
restaurants and attract
foreign tourists, U Khin
Aung Tun from Myanmar
Tourism Federation.
Yangon regional gov-
ernment has agreed to
our proposal for a night
market in Mahabandoola
Park street. It aims to pro-
vide hygienic and healthy
food to locals and foreign-
ers and also help basic
food vendors who sell at
night.
Foreigners can have
Myanmar foods, buy
souvenirs or sit and read
books there. It will con-
tribute to the tourism in-
dustry, he said.
A total of 14 small res-
taurants, two each from
the seven downtown
townships, will be se-
lected on the criteria set
by Myanmar Restau-
rant Owners Association
(MWRA) from the pool
of restaurants that ben-
ehL Irom LIe ussocIuLIon`s
help.
Those that have disci-
Night Murket Ior Iood Vendors Iyes Toorists
pline, can meet quality
requirements and satisfy
the customers will be ap-
proved to run stalls at the
night market. We have
studied the factors con-
tributing to the success
of night markets in other
countries, U Kyaw Myat
Moe, general secretary of
MWRA said.
Currently, MWRA is
working on helping small
restaurants and will select
14 based on the folowing
criteria: how much they
understand the goals of
the association and are
willing to cooperate with
it, whether they are do-
ing business in places
allowed by the City De-
velopment Committee, if
they are popular choices
of the diners, and if they
meet hygiene standards
and are willing to undergo
inspections.
Many current food
stalls have low hygiene
practices and unattrac-
tive settings, so a well
organised night market
can change that. The food
doesnt have to be cheap
and as long as the food
and the packing are clean
and of good quality it will
work, said Daw Ohnmar
Oo, sales director of Gold-
en Orbit Travel and Tours
company.
The stalls that dont
follow rules should be pe-
nalised and will be shut
down, she added.
Neighboring countries
also have night markets.
Thailand in particular
boasts a two-mile long
night market in Chiang
Mai. The market, which
is open from 6pm to 2am,
does not litter the place
leaving it clean after it is
closed in the morning,
she said, adding that if
such practice is applied
here, the night market
will be a success.
Myanmar has launched
an E-Visa system on Sep-
tember 1, part of a cam-
paign to prompt tourist
arrivals. Last years travel
season recorded an annu-
al increase of 50 percent
in tourist arrivals and 3
million foreign tourists
are expected to enter the
country this year, accord-
ing to Myanmar Tourism
Federation.
We appreciate support
like this. We have almost
always been having clashes
with YCDC. We are allowed
to set up shop only after
3pm,which is not a good
time for selling food, told
a vendor selling steamed
rice downtown.
Imported Timbers Key Ior Wood Processing Indostry
Phyo Thu
T
he growth of My-
anmars timber-
processing industry
will rely more on timbers
imported from abroad
than those produced do-
mestically, industry insid-
ers say.
Despite heaving logging
inside Myanmar, raw tim-
ber from outside of the
country will ensure more
prohL Ior LIe LImber-pro-
cessing plants, which have
increasingly received for-
eign investment, said U
Bar Bar Cho from the My-
anmar Timber Merchants
Association.
Timber-processing pla-
nts are not allowed to set-
up near forest areas. So if
you compare the quality
of local raw timber and
the transportation costs,
IL Is more prohLubIe Lo use
teak and other hardwoods
from abroad.
In the future, the in-
dustry will rely more and
more on timber imports.
We have asked the gov-
ernment to issue the re-
quired documents for
timber imports in the
near future, he told My-
anmar Business Today.
After the export of tim-
ber logs were banned at
the start of the current
hscuI yeur, LIe exporL oI
processed timber prod-
ucts has increased. How-
ever, links to major mar-
kets remain weak even
though Indian investors
are planning to construct
two timber-processing
factories and the govern-
ment is negotiating with
the European Union for
approval to freely export
timber products.
Weak access to markets
and poor quality over-
shadows the progress
made in the industry and
will remain a hindrance
for the foreseeable future,
local wood processing in-
dustry insiders say.
Processed timber is
used in making of lo-
cally produced furniture;
however, the design and
quality of timber-based
products in Myanmar are
of poor quality, while pro-
cessed teak and its acces-
sories also remain sub par
to meet demand.
If the country can in-
crease its quality and
export prospects, it will
support the goals of the
National Export Strategy,
given that timber prod-
ucts are expected to be a
major export for the My-
anmar.
Myanmar Summary
Myanmar Summary
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Workers work at a teak parquet factory in Yangon.
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mmbiztoday.com
LOCAL BIZ
12
Myanmar Summary
From page 1...
From page 1...
Iurmers Tie Lp with Jupunese Iirm to
Boost Orgunic Iurming
Kyaw Min
T
he Myanmar Or-
ganic Association
said it plans to
work wILI Jupunese hrm
EM Company to promote
organic farming in Myan-
mar.
The plan is in response
to growing demand for
organic products in the
international market,
which Myanmar is poised
to enter if it can increase
investment and value-
added capacity in the
countrys large agricul-
ture sector.
Local farmers have
formed a temporary as-
sociation for comprehen-
sive development in the
organic farming industry,
which will cooperate with
LIe Jupunese hrm, wIIcI
has extensive knowledge
and technical skill in or-
ganic techniques, U Hnin
Oo, spokesperson of the
association, said.
Currently, the local base
practicing organic farm-
ing is too small to even
meet local demand. The
association will help lo-
cal individuals interested
in introducing organic
farming techniques and
incorporating new tech-
nology into their practices
so that they can gain in-
ternational accreditation,
to quench demand both
domestically and interna-
tionally.
Even though the form-
ing of an association and
a partnership with EM
Company will bring great
value to the organic farm-
ing industry, more sup-
port is needed from the
government to ensure its
competitiveness and suc-
cess.
Locals who want to in-
troduce organic farming
techniques do not have
enough land, while those
who have land are not in-
terested in the practice.
So the government should
provide organic farmers
with land and funding,
said U Hnin Oo.
Myanma Agricultural
Enterprise has issued in-
ternationally accepted
accreditations to only 43
farmers, while Myanmar
only has 1,500 acres of or-
gunIc rIce heIds.
If we introduce organ-
ic farming methods and
receive international ac-
creditation, we will have
better export options. But
In 2013, Myanmar ex-
ported about 746,000
tonnes of rice to China
through informal border
channels. Rice exports
to China have increased
by about 125 times since
2011, according to a June
World Bank report.
China has a high de-
mand requiring 4 to 5
million tonnes of rice eve-
ry year. This years rice
export can reach up to 2
million tonnes, said U Ye
Min Aung, secretary gen-
eral of MRF.
However, relying too
much on a single market
can create risks as any
ucLuuLIon In LIe murkeL
cun Iuve sIgnIhcunL Im-
pact on the export coun-
try, he said, adding that
it is necessary to diversify
the industry and its mar-
ket opportunities.
Currently the major ex-
port destination is China
followed by Africa. But
exports to Africa dip dur-
ing the monsoon season.
As for new markets, Eu-
rope is providing good
prospects as Myanmar
has received GSP status,
Dr Soe Tun, joint secre-
tary of MRF said.
Myanmar was able to
export over 1 million
tonnes of rice for three
years in a row from 2011
and 2014 and expects to
export 4 million tonnes by
2019-20. Currently Muse,
the northern border town
is seeing annual exports
of 700,000 to 800,000
tonnes of rice across the
border. After a bilateral
agreement is reached, of-
hcIuI exporLs Lo CIInu wIII
be no less than the cur-
rent volume. Vietnam and
Thailand are exporting
over 1 million tonnes of
rice to China every year.
Myanmar has exported
1.2 million tonnes of rice
durIng zo1-1q hscuI yeur
and has set a target of ex-
porting up to 3 million
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for success, we will also
need to address the issues
of land and capital, a
farmer from Hlegu town-
ship in Yangon said.
Lonnes In LIe currenL hs-
cal. According to the Min-
istry of Commerce, Myan-
mar earned $196 million
from April 1 to August
15 by exporting 530,000
tonnes of rice, up 41 per-
cent from $138 million
exported during the same
perIod In LIe IusL hscuI
year.
Regional rivals Vietnam
and Thailand are each ex-
porting around 10 million
tonnes every year. Myan-
mar Rice Federation is
also planning to do work-
shops with Myanmar Rice
and Paddy Traders As-
sociation and Myanmar
Rice Millers Association
to ensure quality stand-
ards in each stage of pro-
duction and export.
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mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
Myanmar Summary
LS Bosiness Lobby Suys Concerned Chinu
Antitrost Probes LnIuir
Michael Martina
F
oreign companies
are increasingly
concerned they are
being targeted by Chinese
regulators, a U.S. business
lobby said, as a Chinese
antitrust agency defended
probes InLo hrms sucI
as U.S. chipmaker Qual-
comm Inc.
The American Chamber
of Commerce in China is
the latest business lobby
to air its grievances over
a series of investigations
scrutinising at least 30
IoreIgn hrms, us CII-
na seeks to enforce a 2008
anti-monopoly law.
There are growing per-
ceptions that multina-
LIonuI hrms ure under
selective and subjective
enforcement using legal
and extra-legal approach-
es, the Chamber said in a
report.
A survey of 164 mem-
bers showed 49 percent of
respondents felt foreign
companies were being
singled out in recent pric-
ing and anti-corruption
campaigns, compared to
40 percent in a late 2013
survey of 365 members.
TwenLy-hve percenL suId
they were uncertain, or
did not know, and 26 per-
cent said no.
Chamber Vice Chair-
man Lester Ross told re-
porters the major expan-
sion of enforcement was
welcome in principle, but
regulators were using ex-
tra-legal means to con-
duct investigations.
They have taken what
are, in many instances,
vugue or unspecIhed pro-
visions in the law and
moved to enforce them,
and sought to enforce
those means through pro-
cesses that do not respect
the notion of due process
or fairness, Ross said.
In an April letter to
Secretary of State John
Kerry and Treasury
Secretary Jacob Lew,
the U.S. Chamber of Com-
merce urged Washington
to get tough with Beijing
on its use of anti-compe-
tition rules.
China had seized upon
competition law to ad-
vance industrial poli-
cies that nurture domes-
tic companies, the U.S.
Chamber, based in Wash-
ington, said in the letter.
The European Union
Chamber of Commerce
in China in August ex-
pressed its concern over
the antitrust investiga-
tions, saying China was
using strong-arm tactics
and appeared to be un-
fairly targeting foreign
hrms.
Xu Kunlin, director gen-
eral of price supervision
and the anti-monopoly
bureau at the National
Development Reform
Commission (NDRC),
reiterated that local and
foreign companies were
being treated equally by
the agency.
Such accusations are
groundless and baseless,
Xu LoId LIe omcIuI CIInu
Daily newspaper.
Some of the NDRC
monopoly investigations
involve overseas multina-
tionals, but that does not
mean that we are target-
ing them, Xu said in an
interview with the paper.
Some business opera-
tors in China have failed
to adjust their practices in
accordance with the anti-
monopoly law, he added.
Others have a clear un-
derstanding of the laws,
but they take the chance
that they may escape pun-
ishment.
Xu said the NDRC, one
of Chinas three anti-
trust regulators, was also
handling cases involving
sLuLe-owned hrms und
Chinese private sector
companies.
The automotive indus-
try has been in focus for
the last two or three years,
Xu said. Last month, the
NDRC slapped a record
hne oI $zo1 mIIIIon on 1z
Japanese automakers it
said had engaged in price
manipulation.
The NDRC is investi-
gating Qualcomms local
subsidiary after it said
in February the com-
pany was suspected of
overcharging and abus-
ing its market position in
wireless communication
standards, accusations
that could lead to record
hnes oI more LIun $1 bII-
lion.
Another antitrust regu-
lator, the State Adminis-
tration for Industry and
Commerce, said on Mon-
day it had given Microsoft
Corp 20 days to reply to
queries on the compat-
ibility of its Windows op-
erating system and Of-
hce soILwure suILe umId
its probe into the worlds
largest software compa-
ny. Reuters
Thui Consomer Condence Rises espite
Poor Iconomic Iigores
C
onsumer conh-
dence in Thailand
rose for a fourth
straight month in August,
suggesting consump-
tion may improve now
that three months have
passed since a military
coup which halted Bang-
kok street protests and re-
duced political tensions.
TIe consumer conh-
dence index of the Univer-
sity of the Thai Chamber
of Commerce rose to 80.1
in August, its highest level
since July last year, from
Orathai Sriring &
Kitiphong Thaich-
areon
78.2 the previous month.
Through April, the index
fell 13 straight months,
reaching a trough of 67.8.
From November, the de-
clines were fuelled by
prolonged unrest, which
battered economic activ-
ity and tourism.
The consumer con-
hdence Index Ius rIsen
sLeudIIy, especIuIIy conh-
dence in the future econ-
omy, suggesting people
still have hope, Thana-
vath Phonvichai, an eco-
nomics professor at the
unIversILy, LoId u brIehng.
BuL conhdence In LIe
current economy is still
not that good, weighed
down by lower commod-
ity prices.
The unrest, together
with weak exports, caused
Southeast Asias second-
largest economy to con-
tract 0.1 percent in the
hrsL IuII Irom u yeur eur-
lier, though it avoided
a technical recession in
April-June.
Exports, equal to more
than half of the economy,
have been sluggish this
year, while imports have
slumped and factory out-
put has fallen for more
than a year, showing that
economic engines remain
wobbly.
Benepts coming
later ?
The military govern-
ment has settled delayed
payments to rice farm-
ers and is trying to get
on track long-dormant
spending plans, including
infrastructure projects.
BuL LIe benehLs ure noL
expected until next year
or later.
Private consumption
rose in July from June but
investment fell again, ac-
cording to the central bank.
Tourism, which ac-
counts for about 10 per-
cent of the economy, is
not back to normal yet.
Foreign arrivals dropped
11 percent in July from a
year earlier, an improve-
ment from Junes 24.4
percent slump. Reuters
A vendor seIIs game consoIes incIuding Xbox Une and Sony's PS4 in Shanghai.
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mmbiztoday.com
REGIONAL BIZ
14
Lights OH on Singupore's Billionuire Row us
Loxory Hoose Prices Plonge
Caroline Ng
T
heres an eerie si-
lence at night in
Sentosa Cove, the
man-made island resort
billed as Singapores an-
swer to Monte Carlo and
the only place in the coun-
try where foreigners can
buy landed property.
Dozens of houses -
complete with their own
private yacht berths and
multiple swimming pools
- sit empty while few
lights are on in the apart-
ment blocks overlooking
the marina, a few kilome-
tres away from Sentosas
giant casino.
Prices in the gated com-
munity fell around 20
percent in the past year
as lending restrictions
and taxes on foreign
buyers burst a bubble in
LIe SouLIeusL AsIun h-
nancial hubs luxury real
estate market.
Investors could see the
value of their assets fall
even further with devel-
opers and investors still
struggling to sell even af-
ter the recent price falls.
Real estate websites list
Iundreds oI uLs und
bungalows for sale, yet
just 12 apartments and
one house have changed
hands all year on Sentosa,
according to data from
the Urban Redevelop-
ment Authority (URA).
The way prices have
fallen in Sentosa, its as if
LIere Is u gIobuI hnuncIuI
crisis, said Alan Cheong,
head of Singapore research
uL properLy hrm SuvIIIs.
That could mean a tough
2015 for the city states
banks unless policy restric-
tions are eased soon. But
that looks unlikely because
government - i mposed
curbs are having the de-
sIred uecL oI keepIng LIe
broader market in check
after private house prices
rose more than 60 percent
between 2009 and 2013.
Estate agent Knight
Franks analysis of prop-
erty prices in 32 cit-
ies around the world
found Singapores prime
residential market, de-
hned us LIe prIcIesL
percent of properties,
performed the worst in
LIe hrsL IuII oI zo1q, wILI
prices falling 7.3 percent.
For the luxury sector,
the government meas-
ures have led to a sharp
drop in foreign buyers,
who accounted for over
half of Sentosa sales be-
tween 2010 and 2014.
That means the number
of distressed investors is
expected to rise.
Some of the earlier
buyers are likely to have
bought at prices 20 to
30 percent above current
prices, said Christine
Li, head of research at
property consultancy Or-
angeTee.
The rental cant even
cover the mortgage for
these high-end invest-
ments - they want to of-
oud buL LIere ure no Luk-
ers.
Di str ess Si gnals
United Overseas
Bank, Singapores third-
biggest lender, last month
reported a doubling in its
bad debt charges for the
second quarter, saying
a group of investors was
struggling to service high-
end property loans.
The number of residen-
tial properties being put
up for sale at auction by
banks after buyers de-
faulted on mortgages,
known as mortgagee
sales, quadrupled to 64 in
LIe hrsL IuII oI LIIs yeur
from 16 in the second half
of 2013, according to real
estate agency Colliers.
TIIs Is dIerenL Irom
previous years, when
owners sales dominated
auctions, said Joy Tan,
head of auctions at DTZ.
The tables have turned
and we expect more mort-
gagee sales on the way.
Some in the luxury
property industry fear
foreign buyers have gone
for good.
City Developments
Ltd, Southeast Asias
second-largest residential
property developer, said
in its latest results state-
ment that foreign buyers
have shifted and are still
shifting their investments
to markets outside Singa-
pore. Reuters
Thuilund's PTT Pluns $ob Vietnum Renery,
Petrochemicul Complex
Khettiya Jittapong
T
op Thai energy
hrm PTT PcI suId
it would make a
proposal to the Vietnam-
ese government to build
u $zo bIIIIon rehnery und
petrochemical complex,
revised down from an ear-
lier project discussed two
years ago.
State-controlled PTT
will meet with Vietnams
prime minister this
month to present its pro-
ject proposal, PTT Chief
Executive Pailin Chuchot-
taworn told reporters.
The complex has been
designed to help meet Vi-
etnams domestic demand
for oil products and boost
its exports.
PTT has studied the
possibilities of investing
in central Vietnam for
over two years. The value
of the project was reduced
from a previous estimate
of $28.7 billion after the
Vietnamese government
issued a licence for a new
rehnery In norLIern VIeL-
nam. The planned capaci-
Ly oI PTT`s oII rehnery Ius
been cut by 40 percent
from an initial 660,000
barrels per day.
The project, which re-
quires investment of
about 600 billion baht
($18.8 billion), now in-
cludes a 400,000 bpd
rehnery und oIehns und
aromatic petrochemical
plants, Atikom Terbsiri,
PTT senior executive vice
president, said.
The construction of the
rehnery Is scIeduIed Lo
be completed by 2021,
and most of products will
serve domestic demand
in Vietnam, Atikom add-
ed.
The petrochemical com-
plex will have an annual
production capacity of 2.9
mIIIIon Lonnes oI oIehns
and 2 million tonnes of
aromatic products, and
most of the petrochemical
products will be exported.
Demund Ior rehned oII
products in Vietnam is
expected to rise by 5-6
percent a year from about
300,000 bpd now, Atikom
said, adding that PTT will
hold about 40 percent of
the project, while the rest
will be owned by strategic
partners. Reuters
Myanmar Summary
Myanmar Summary
A construction worker passes the IargeIy vacant Cape RoyaIe condominium in Sentosa Cove on Singa-
pore`s Sentosa isIand.
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mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
Myanmar Summary
Thui Shippers Cot Ixport Iorecust,
Another Worrying Sign Ior Iconomy
Orathai Sriring
A
Thai shippers
group expects ex-
ports to grow no
more than 1 percent this
year, another worrying
sign for a trade-depend-
ent economy struggling
after months of political
unrest that led to a mili-
tary coup in May.
Exports are crucial to
Thailand, equivalent to
more than 60 percent of
its economy each year,
and the Commerce Min-
istry is banking on export
growth of 3.5 percent this
year.
But that may be ambi-
tious, as shipments in the
hrsL seven monLIs sIIpped
0.42 percent from a year
earlier, while imports fell
for the 13th straight month
in July; many imported
materials are assembled
into goods that are shipped
out again, so the drop im-
plies weak demand from
exporting sectors.
L wIII be dImcuIL Lo geL
1 percent (export growth)
this year after an unex-
pected drop in July ex-
ports, Nopporn Thep-
sitthar, chairman of the
National Shippers Coun-
cil, told Reuters.
The councils latest fore-
cast was for 1.0-1.6 per-
cent. It has cut its projec-
tion steadily from 5 percent
made late last year.
Exports fell 0.85 per-
cent in July from a year
earlier, according to Com-
merce Ministry data.
We are very concerned
about global markets as
there are several risks
such as international ten-
sions, the Ebola outbreak
und unsLubIe hnuncIuI
markets, Nopporn said.
We want to warn export-
ers and the public to get
prepared for all the risks.
Traders have also said
Thailand faced delays
in exporting millions of
tonnes of rice because of
a labour shortage at ports
after hundreds of thou-
sands of foreign workers
ed umId Ieurs oI u mIII-
tary crackdown on illegal
immigrants.
However, Nopporn said
that was not an industry-
wide problem.
The Bank of Thai-
land has forecast export
growth of 3 percent for
this year but is expected
to trim that when it re-
leases new economic fore-
casts on Sept. 26.
Although export growth
will not meet our forecast,
IL wIII probubIy noL uecL
our GDP growth projection
as we have other things
helping, such as domestic
demand and investment,
Assistant Governor Math-
ee Supapongse told report-
ers on Tuesday.
We are keeping our
2014 economic growth
forecast of 1.5 percent for
now.
The Finance Minis-
try has estimated export
growth of 1.5 percent for
this year and economic
growth of 2 percent.
However, Gundy Cahy-
adi, an economist with
DBS Bank in Singapore,
said: For growth to pick
up above 2 percent, we
need exports at around
6-7 percent, given the
current situation.
The economy grew 0.9
percent in the second
quarter from the previous
three months. The mili-
tary government is ex-
pecting a rebound in the
second half, helped by a
reLurn oI conhdence uILer
the armys intervention
put an end to months of
street protests. Reuters
Indiun Soymeul Sopplies to Arrive Month Lute in Sootheust Asiu
Ratnajyoti Dutta
I
ndias soybean har-
vest will be delayed
by a month this year,
pushing back new-crop
soymeal shipments to
Southeast Asia until No-
vember, traders said.
The late arrival of this
years monsoon in the
main soybean growing
areas of Madhya Pradesh
and Maharashtra states
pushed back planting of
the crop by more than
three weeks.
The late monsoon this
year in Maharashtra state
also led some farmers to
shift completely to soy-
beans from corn because
the oilseed needs less wa-
ter and matures in three
months as compared to
four for corn.
n ndIu, LIe hILI Lop pro-
ducer of soybeans, the crop
is usually sown from the
second half of June with
the spread of the monsoon
rains, with the planting
usually over by mid-July.
This year soybean ...
planting spilled over until
AugusL hrsL week, S.K.
Srivastava, head of the
state-run Directorate of
Soybean Research, told
Reuters over the phone
from Indore, a soybean
hub in central India.
Periodic rains have
so far ensured good soil
moistures for a healthy
growth of the soybean
crop, added Srivastava,
the countrys leading soy-
bean scientist.
Indias soybean crop
area stood at 11.03 mil-
lion hectares (27.3 million
acres) against 12.18 mil-
lion hectares last year, ac-
cording to the latest farm
ministry update.
This years area is 6.3
percent more than the
average area of 10.38 mil-
lion hectares for the past
hve yeurs, uccordIng Lo
the ministrys update.
Reuters
A worker waIks near a container being Ioaded onto a cargo ship at a port near the Chao Phraya river in
Bangkok.
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mmbiztoday.com
INTERNATIONAL BIZ
16
Iorope ruIts Imergency Inergy Plun with
Iye on Rossiu Gus Shot-own
Henning Gloystein
T
he European Un-
ion could ban gas
exports and limit
industrial use as part of
emergency measures to
protect household energy
supplies this winter, a
source told Reuters, as it
braces for a possible halt
in Russian gas as a result
of the Ukraine crisis.
Russia is Europes
biggest supplier of
oil, coal and natural
gas, and its pipelines
through Ukraine are cur-
rently the subject of po-
litical manoeuvering - not
Ior LIe hrsL LIme - us Eu-
rope and Moscow clash
over the latters military
action in Ukraine.
Kiev is warning
that Russia plans to halt
gas supplies while Mos-
cow says Ukraine could
sIpIon o energy des-
tined for the European
Union - which has just
threatened new sanctions
if Moscow fails to pull its
forces out of Ukraine.
While buyers of oil and
couI cun hnd new sup-
pliers relatively quick-
ly, southeast Europe re-
ceives most of its gas
from Kremlin-controlled
Gazprom.
Tankers from Qa-
tar and Algeria bring liq-
uehed nuLuruI gus (NG)
to Europe via ports along
the Atlantic and Mediter-
ranean oceans, but Euro-
pean buyers often re-sell
those cargoes abroad for
higher prices rather than
supplying their domestic
market.
A source at the EU
Commission said it was
considering a ban on the
practice of re-selling to
bolster reserves.
In the short-term, we
are very worried about
winter supplies in south-
east Europe, said the
source, who has direct
knowledge of the Com-
missions energy emer-
gency plans.
Our best hope in case
of a cut is emergency
measure 994/2010 which
could prevent LNG from
leaving Europe as well as
limit industrial gas use in
order to protect house-
holds, the source said.
European Union Regu-
lation number 994/2010,
passed in 2010 to safe-
guard gas supplies, could
include banning gas com-
panies from selling LNG
tankers outside of Eu-
rope, keeping more gas
in reserve, and ordering
industry to stop using gas.
Cutting industrial con-
sumption would hurt an
already shaky European
economy, while banning
utilities from selling liq-
uehed nuLuruI gus (NG)
tanker cargoes overseas
would hurt their reve-
nues.
European utilities have
been preparing for a sup-
ply cut by injecting as
much gas as possible into
storage and as a result,
the regions storage facili-
LIes ure hIIed Lo qo per-
cent, or 70 billion cubic
metres (bcm), equivalent
to 15 percent of Europes
Myanmar Summary
annual demand.
Whatever the bloc does,
it will struggle to com-
pensate fully if Russian
gas stops coming to Eu-
rope, political and in-
dustry sources say. Gas
prices have risen 35 per-
cent since July due to this
threat.
Russia meets around a
third of EU demand for
oil, coal and natural gas,
according to EU data. In
return it receives some
$250 billion a year, or
around two-thirds of gov-
ernment revenue.
Gazprom insists it
has been a reliable sup-
pIIer und LIuL ows
to Europe were in the
past disrupted only af-
ter Ukraine took some gas
intended for the EU to
meet its own demand.
We believe the Ukrain-
ian situation will not be
resolved without a transit
interruption (and) prices
would be likely spike,
said analysts at French
bank Societe Generale.
Reuters
Europe is stockpiIing gas and oiI for potentiaI shortages this winter.
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mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
Swiss Iconomy Most Competitive Once
Aguin; IL, LS, Jupun Improve
Tom Miles
T
he European Union
is becoming more
competitive but
Switzerland, Singapore
and the United States are
the three economies to
beat, according to an an-
nual survey by the World
Economic Forum.
The Global Competitive-
ness Report published by
the Geneva-based body,
which is most famous for
gathering politicians and
billionaires for an an-
nual exchange of views at
the Alpine resort of Da-
vos, showed the same 10
counLrIes hIIIng LIe Lop 1o
spots for at least the third
year running.
Switzerlands slick ef-
hcIency, InnovuLIon und
macroeconomic stability
kept it on top for a sixth
year in a row, although it
was marked down for the
dImcuILy oI hndIng quuII-
hed workers.
A potential threat to
Switzerlands competitive
edge might be the increas-
Ing dImcuILIes Iuced by
businesses and research
InsLILuLIons In hndIng LIe
talent they need to pre-
serve their outstanding
capacity to innovate, the
report said.
The United States mus-
cled into third place ahead
of Finland and Germany,
while Japan leapfrogged
Hong Kong and the Neth-
erlands to take sixth spot.
EU states such as Roma-
nia, Portugal and Latvia
were among those rising
up the ranks of competi-
tiveness. Greece, which is
still bringing up the rear
for the EU, in 81st place
globally, jumped 10 plac-
es up the rankings from
91st last year.
China climbed one rank
to 28th, Russia jumped 11
to 53rd spot, while India
slid 11 to 71st and became
the least competitive
BRIC economy, 14 places
behind Brazil.
Bottom-ranked this
year was Guinea, lately
in the news for being the
source of the worlds most
deadly Ebola outbreak.
The Forum bases its as-
sessment on a dozen driv-
ers of competitiveness,
including institutions,
infrastructure, health and
education, market size
and the macroeconomic
environment. The report
also factors in a survey
among business leaders,
assessing government
emcIency und Lrunspur-
ency. Reuters
Cunudiun Homeboilders Look Sooth,
Bet on LS Hoosing Recovery
O
verheating wor-
ries at home are
driving Canadas
homebuilders south of the
border where they buy up
rural land, betting on a re-
covery in the U.S. subur-
ban housing market even
as many local players re-
main on the sidelines.
Homebuilders such
as Mattamy Homes and
BrookheId ResIdenLIuI
Properties Inc are buy-
ing undeveloped land in
Florida, Texas and other
states where prices tum-
bIed durIng LIe gIobuI h-
nancial crisis and remain
well below pre-crisis lev-
els.
The companies said that
by moving now they give
themselves enough time
to prepare the land and
build homes so they will
be ready for sale once the
U.S. recovery gains mo-
mentum in a couple of
years.
Sweta Singh &
Ashutosh Pandey
We are probably a good
two years away before we
are at a normalized U.S.
housing market and so it
is actually a good time to
go and buy in the U.S.,
Mattamy Homes Chief
OperuLIng Omcer BrIun
Johnston told Reuters.
He said the company
was focusing on suburban
areas, where more and far
cheaper land is available
than in the cities, allowing
them to build on a bigger
scale.
Mattamy and its peers
also expect to hit a sweet
spot with retirees and af-
uenL second-Iome buy-
ers who want amenities
like shopping, dining
and entertainment, and
snowbirds -- Canadians
who migrate to southern
US states for the winter.
Some analysts warn Ca-
nadian builders could end
up waiting much longer
than they expect for re-
turns from those invest-
ments and many of their
US rivals appear not sold
yet on the idea of subur-
ban market revival.
There is little bit of a
timing risk. You can go
buy the land now but it
will be sometime before
demand really bounces
back, said Ryan Severi-
no, an economist at real
esLuLe reseurcI hrm ReIs.
The contrast between
the Canadians vigorous
push into the U.S. market
and caution of their lo-
cuI rIvuIs IurgeIy reecLs
sLurkIy dIerenL murkeL
conditions in which they
operate.
Canadian house pric-
es have doubled in the
past 11 years and house-
hold debt to GDP ratio is
around the all-time high
of 164, fuelling concerns
that the market might be
overheating. In the Unit-
ed States that ratio is clos-
er to 80 percent according
to data published by the
St. Louis Federal Reserve
and the market is still at
early stages of a tentative
recovery after buckling in
the second half of 2013.
New housing starts
bounced in July and the
National Association of
Home Builders expects a
26 percent rise next year
while the nations real-
tors association is fore-
casting new home prices
to rise 4 percent by mid-
2015. But new home sales
fell for the second straight
month in July and just
like north of the border
there are concerns about
uordubIIILy oI IousIng
in the light of stagnating
incomes.
US builders are also
working through a back-
log of unsold homes,
which limits their ability
Lo hnunce new projecLs.
Inventory of new houses
reached an equivalent of
6 months sales in July,
the highest level since Oc-
tober 2011, according to
the U.S. Commerce De-
partment. Reuters
Myanmar Summary
A Swiss nationaI Hag Hies from a HagpoIe above Iake Ceneva in Ceneva, SwitzerIand.
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mmbiztoday.com
INVESTMENT & FINANCE
18
Myanmar Summary
Myunmur City L-Torns Amid Ootcry
over Secret $S-b Hoosing eul
Aung Hla Tun
A
uthorities in My-
anmars biggest
city have backed
down on plans to award
an $8-billion construc-
tion contract to a barely
known hrm IoIIowIng
a public outcry over its
transparency in a coun-
try notorious for graft and
vested interests.
The Yangon region gov-
ernment said an open
tender would be held for
a huge low-cost housing
project, one of the biggest
of its kind in Myanmar,
just days after the citys
mayor stunned lawmak-
ers by announcing a deal
had been struck in secret
wILI u hrm seL up onIy
nine months ago.
We were all caught by
surprise when we heard
this, Yangon region law-
maker Nyo Nyo Thinn
told Reuters.
We later realised that
they had been carrying
out this project secretly
without the knowledge of
parliament, and were far
from seeking approval.
It was unclear what
prompted the decision to
open up bidding or if the
central government was
involved, or even aware
of the initial deal with
Myanmar Say Ta Nar
Myothit Public Co Ltd,
which was registered as
a business in December
last year and unheard of
until Mayor Hla Myints
announcement.
The government of re-
formist president and for-
mer general Thein Sein
Ius vowed Lo hgIL gruIL
and promote transpar-
ency to lure foreign invest-
ment and help address
urgent employment and
infrastructure needs. Many
WesLern hrms, Iowever,
remain hesitant about
making big commitments.
Under the militarys
1962-2011 rule, business
deals and concessions
related to energy, infra-
structure, land and min-
ing were often extremely
opaque, awarded without
tenders to cronies of the
generals whose kleptocra-
cy deterred competition.
The project, covering
three townships in the
west of Yangon, seeks to
address a shortage of af-
fordable accommodation
in a city expected to swell
far beyond its six million
residents as business and
tourism grows, construc-
tion booms and investors
arrive from Thailand, Sin-
gapore, India and Japan.
It aims to provide
20,000 low-cost housing
unILs, hve brIdges Lo con-
nect the area to the rest
of Yangon, a school and a
home for the elderly.
We just cant under-
stand who is behind this
and why they did it secret-
ly, said a minister with
the Yangon region gov-
ernment, who declined to
be IdenLIhed.
W
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Myanmar Summary
ITP Aims to Strengthen ASIAN's Logistics
Intrepreneors' Network viu 'TILOG o1q'
Wai Linn Kyaw
T
hailands Depart-
ment of Inter-
national Trade
Promotion (DITP) in col-
laboration with public-
private sectors is to or-
ganise the 11th Thailand
International Logistics
Fair 2014 (TILOG 2014)
in a bid to showcase Thai-
lands logistics capabili-
ties.
The event will take place
from September 24-27 at
Building 101-102, Bang-
kok International Trade
& Exhibition Centre
(BITEC), Bangna, and is
expected to encourage
networking between en-
trepreneurs and logistics
professionals, DITP said.
As the leading trade fair
for logistics in the region,
TILOG 2014 will show-
case innovations and ef-
fective logistical solutions
which help entrepreneurs
reduce operation costs ef-
fectively and allow busi-
nesses to gain competitive
advantages to stay ahead
of the competition as a re-
sult of ASEAN trade liber-
alization, DITP said.
Nantawan Sakuntan-
aga, director-general of
DITP, Ministry of Com-
merce, said: This fair is
one of the key strategies
to develop capabilities of
logistics services in Thai-
land and to present local
IogIsLIcs emcIency, us weII
as to showcase innovative
technologies and solu-
tions from the industry
to local and international
entrepreneurs.
She said TILOG 2014
has established itself as a
leading networking plat-
form for all logistics sec-
tors in ASEAN+6 coun-
tries.
TILOG 2014 is an ex-
cellent opportunity for all
busIness owners Lo hnd
the right products, ser-
vices, technologies and
innovations to maximise
emcIency wILIIn busIness
operations and to gain
competitiveness. It is an
important bridge for local
and overseas enterprises
to cross national bounda-
ries and expand business-
es to international mar-
ket, said Nantawan.
News group Eleven Me-
dia lashed out at the pro-
ject last week in several
of its publications and
posted an article on its
English-language website
headlined: Do you think
the entire nation stupid?
Eleven cited public con-
cern over the secrecy of
the plan and lack of infor-
mation about Myanmar
Say Ta Nar Myothit, in-
cluding the identity of its
owner. Reuters
A view of Yangon skyIine.
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mmbiztoday.com
19
Myanmar Summary
Myanmar Summary
David Mayes
I
am a big fan of invest-
ing in real estate. I am
often asked by clients
living and working in this
region how they can in-
vest in real estate, and
unfortunately it is never
as cut and dry here as it is
in many other places, for
reasons I will discuss be-
low. That said, if you are
living in this region long
term, and would like to
diversify your investment
portfolio to include some
real estate, what should
you do?
IrsL o, LIe reuson
love real estate is because
you can actually have
something real, and in
many cases something
you can even use yourself.
In terms of the laws of sup-
ply and demand, God isnt
making any more of the
sLu, so IL Is u preLLy sure
bet that it will appreciate
over time. As long as you
dont leverage it or buy it
under dodgy or question-
able circumstances and
you hold a proper title,
it cannot be taken away
from you usually. In the
long run, even though it
is not very liquid, land or
property, as long as it not
bought in the midst of a
bubble, is one of the safest
asset classes on the planet
and the upside can be as-
tronomical.
In Myanmar it is not le-
gal for foreigners to own
Reul Istute Investing Ior Ixputs in Myunmur
land. This is the law and
I could not, should not,
and never will advise
anyone to break the law,
ever. For those with deep
pockets, there are busi-
ness opportunities where
you can legally get gov-
ernment approval to have
a joint venture own or
Ieuse Iund Ior u specIhed
period of time, but this is
not personal ownership in
the Western sense of the
world. Unfortunately that
is just the way it is.
So what can an average
Joe do about diversifying
their portfolio if they are
likely to spend the next
10-20 years in Myanmar
or a similar country that
prohibits foreign owner-
ship of land? One option
is to use real estate funds,
and if you have read many
of my previous articles
you know I generally ad-
vise avoiding them like
the plague. If there is a run
on the fund, i.e. everyone
asks for their money back
at the same time, then the
manager may be forced to
IIquIduLe properLIes uL hre
sale prices and you lose
simply because of the ac-
tions of other investors.
That pretty much negates
the glowing recommen-
dation of the safety of real
estate that I just wrote
about above, doesnt it?
Well, there is a very
easy and frequently over-
looked option. Buy real
estate somewhere else.
There are many places in
the world that allow for-
eign ownership of land,
and many are in places
that not only would make
great holiday destinations
for your family, but also
oer greuL opporLunILIes
for appreciation. Many
places will even extend
credit to foreigners to
buIId II LIey hrsL purcIuse
land to use as collateral.
A friend of mine just re-
cently got back from a trip
to Fiji where they will do
this. In the end he didnt
like the plots he was look-
ing at, but that is just one
example.
I myself am considering a
trip to Ecuador in the near
future to look at land. For-
eigners there can hold the
title in their own name,
and there are many towns
wILI greuL surhng wuves
that have plots very near to
the beach at extremely low
prices. As with most of the
developing world, fami-
lies have more children
and therefore population
growth tends to be faster,
which in my opinion is a
reason to avoid the devel-
oped world.
Whatever your budget
is, you can diversify the
same amount across
more properties or even
countries by choosing the
developing world over the
developed. The down-
side is that there is usu-
ally a weaker legal struc-
ture, but that personally
doesnt bother me so long
as I am able to diversify.
Dont rule out direct real
estate investment just be-
cause you live in a country
that doesnt allow you to
own land as a foreigner.
Just broaden your hori-
zons. Your net worth will
thank you for it.
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.
Tuiwunese Associution Iyes Almost HulI-u-Billion
ollur Myunmur Indostriul Purk
Zwe Wai
T
he Taiwan Electri-
cal and Electronic
Manufacturers As-
sociation (TEEMA) said it
will spend about $468.39
million (NT$ 14 billion)
to develop an industrial
park in Myanmars south-
ern Ayeyarwady region in
a bid to tap the lucrative
growth potential of the re-
cently opened country.
According to industry
insiders, TEEMA has al-
ready signed a letter of
intent with its local coun-
terpart to solicit 1,400
hectares of land from the
Myanmar government,
according Taiwanese me-
dia reports.
The association has also
commissioned Taiwan-
based Sinotech Engineer-
ing Consultants Inc, a
corporate consultant, to
assess the feasibility of
the project.
At a meeting with Tai-
wans Chinese National
Association of Industry
and Commerce, Econom-
ics Minister Woody Duh
conhrmed TEEMA`s pro-
ject and said that the pro-
tection of Taiwanese in-
vestment in Myanmar is
expecLed Lo see sIgnIhcunL
progress in the next two
months, CENS reported.
Guo Tai-chiang, chair-
man of both TEEMA and
the Cheng Uei Precision
Industry Co, a leading
contract maker of electri-
cal connectors and adap-
tors, said that Japan and
Korea are the most active
countries in encouraging
LIeIr hrms Lo InvesL In
Myanmar.
He said the Japanese
government provides
preIerenLIuI hnuncIng uId,
in association with local
bunks, Lo Jupunese hrms
developing business in
Myanmar.
Once the planned in-
dustrial park is in opera-
tion, Guo said, a thorough
supply chain will likely
be built, making it easier
Ior TuIwunese hrms IL
to explore the Myanmar
market. This is especially
sIgnIhcunL gIven TuIwun`s
lack of membership in the
Association of Southeast
Asian Nations and the
stalemate over the sign-
ing of a cross-strait agree-
ment on trade in goods
and services with China.
Guo said investment in
Myanmar can be a good
alternative to investment
in China and Vietnam, as
labour shortages and the
recent anti-China rioting
have aroused concerns
among overseas Taiwan-
ese hrms operuLIng In
those countries.
Cheng Ueis subsidiary,
Foxlink, will see the Tai-
wanese migration into the
planned industrial park
by setting up a fossil-fuel
power station there to
help alleviate Myanmars
power shortages.
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mmbiztoday.com
20
Moung Thui Becomes Iirst Thui LiIe Insorer in Myunmur
Aundrea Montao
M
uang Thai Life
Assurance Pub-
lic Company
LTD has opened a repre-
senLuLIve omce In Yungon,
becomIng LIe hrsL TIuI
life insurer in the South-
east Asian country.
Even though the insur-
unce IndusLry remuIns o
limits to foreign compa-
nies, Muang Thai Life As-
surance is the latest for-
eign insurance company
to open a representative
omce In Myunmur wILI
the hopes of cashing in on
the mostly untapped mar-
ket.
Founded in 1951, Muang
Thai Life Assurance in-
tends to bring decades
of experience to bear on
the Myanmar insurance
market, according to
president and CEO Sara
Lamsam. Myanmar is the
hrsL ASEAN counLry LIuL
Muang Thai Life Assur-
ance has setup a repre-
senLuLIve omce.
By having a representa-
LIve omce we ure commIL-
ted and ready to share
our experience with the
providers in Myanmar.
Right now there are quite
a number of companies
in Myanmar that have a
licence and of course we
want to share in the mar-
ket potential, said Sara
in an exclusive interview
with Myanmar Business
Today.
According to the com-
pany, Thai Muang Life
Assurance the repre-
senLuLIve omce wIII, AcL
as a center in providing
cooperation, informa-
tion sharing, supported
in spreading knowledge
regarding the value and
benehLs oI IuvIng Insur-
ance and strategy for the
various services to be pro-
vided to the general pub-
lic, operators and govern-
ment agencies.
In early 2013, the Myan-
mar government issued 12
private insurance licences
to Myanmar companies,
which are allowed to pro-
vide life, comprehensive
moLor, hre, cusI-In-suIe,
cusI-In-LrunsIL, und hdeI-
ity insurance. State-run
Myanma Insurance of-
Iers q6 dIerenL cIusses oI
insurance. According to
KPMG Myanmar, Myan-
mar is also host to 10 lo-
cal insurance brokers and
approximately 600 in-
surance agents that have
been trained by Myanma
Insurance. Even the in-
dustry has been minimal-
ly liberalised it still has a
long way to go in order to
meet potential demand.
Despite restrictions that
keep IoreIgn hrms Irom
fully entering the insur-
ance industry, foreign-
owned companies con-
tinue to remain interested
in Myanmars underde-
veloped market. The My-
anmar government once
hinted the insurance
industry could be liber-
alized as soon as 2015.
However, pushback from
domesLIc Insurunce hrms
has brought this time-
frame into question.
However, in the face of
objection from domes-
LIc hrms, LIe Myunmur
government should con-
sidering allowing foreign
Insurunce hrms Lo oper-
ate in the country sooner,
rather than later.
DomesLIc hrms Iuck
the capacity to properly
develop the market, and
even if they could, they do
not possess the required
capital to cover the un-
derwriting of the market
potential which accord-
ing to Reuters could be as
high as $1.6 billion.
Given this lapse in ca-
pacity, it makes sense to
uL IeusL uIIow IoreIgn hrms
to enter into joint venture
agreements with the most
cupubIe IoreIgn hrms.
Partnership between do-
mestic and foreign insur-
ance companies will aid
Myanmars nascent in-
dustry through informa-
tion sharing, technology
transfer, strategy devel-
opment, and educating
an entire population on
LIe benehLs oI purcIusIng
insurance products.
Myanmar Summary
Commins Power Generution to Provide Hybrid
Power Solotion in Myunmur
Aung Phyo
U
S-based Cummins
Power Genera-
tion has secured
a contract to supply hy-
brid power solutions to
Irrawaddy Green Towers
(IGT) in Myanmar, the
hrm suId.
Under this contract,
Cummins will supply so-
lar hybrid, battery hybrid
and diesel generator solu-
tions to over 750 cell-tow-
er sites that IGT will roll
out in Myanmar during
the next twelve months.
While there are no
shortages of renewable
hybrid solution providers,
we chose Cummins Power
Generation for their tech-
nical expertise as well as
their local service capa-
bility and coverage, said
Charbel Abou-Jaoude,
CEO of IGT, during the
contract signing in Yan-
gon.
Additionally, we were
looking for a partner who
is as committed to the
growth of this country as
we are, he added.
Irrawaddy Green Tow-
ers has been selected
by Telenor Myanmar to
build and operate tele-
com towers for their large
scale, countrywide mobile
network.
In June 2013, Telenor
and Ooredoo won a li-
cence to launch a mobile
network in Myanmar.
Cummins is already one
of the leading suppliers
to Ooredoo and with this
new supply contract with
Irrawaddy Green Towers,
two of the nations largest
mobile service providers
networks will be powered
by Cummins.
Cummins said its ad-
vanced hybrid power sys-
tems are engineered to
optimise capital expendi-
ture while lowering total
cost of ownership and
ensuring uninterrupted
operations.
Leveraging our proven
experience in hybrid pow-
er, we designed a hybrid
producL specIhcuIIy Ior
the telecom industry to
provide the best value to
our customers, said Alan
Zhao, director of telecom
business at Cummins.
Myanmar remains one
oI LIe IusL greenheId op-
portunities in telecom-
munications industry and
Cummins said it has es-
tablished a strong service
and support network to
meet the unique challeng-
es of the country.
Cummins Power Gen-
eration appreciates that
our customers like Ir-
rawaddy Green Towers
and Ooredoo recognise
our ability to innovate
and deliver unique prod-
ucts and strong service
to meet their needs, said
Antonio Leitao, vice pres-
ident, Cummins Power
Generation.
Cummins Power Gen-
eration is committed
to continue to invest in
Myanmar Summary
P
h
y
o

T
h
u
products and services
that are designed to serve
our customers even bet-
ter.
Sara Iamsam, president and chief executive ofcer, Muang Thai Iife Assurance PubIic Company Iim-
ited.
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mmbiztoday.com
21
Myanmar Summary
Investment Protection Agreement with IL:
Muking Myunmur More Attructive Ior Investors
Stefanie Siegfried
W
ith the opening
of the country
in 2012, the
European Union (EU)
reinstated its trade pref-
erences to Myanmar in
July last year. EU invest-
ments in Myanmar re-
main limited as a result
of the former imposed EU
sanctions. Following the
approval of the EU Mem-
ber States in March, new
rounds of negotiations
launched by the EU Trade
Commissioner Karel De
Gucht with Dr Kan Zaw,
union minister for nation-
al planning and economic
development, to establish
an Investment Protection
Agreement (IPA) between
the two entities.
On MurcI zo, LIe hrsL
negotiations for the es-
tablishment of and IPA
took place. Currently, no
investment treaty exists
between the EU, or any
EU member state, and
Myanmar. If agreed upon
and enacted, the invest-
ment agreement will be a
step forward to improve
the protection and fair
treatment of investors
from both sides and will
contribute to attracting
investment into Myanmar
and the EU.
In the past several
years, the Myanmar gov-
ernment has undertaken
major steps to improve
and reform its economy
in order to attract foreign
investment. According to
the EU Trade Commis-
sioner, the EU welcomes
and acknowledges My-
anmars progress and is
committed to support the
counLry In ILs eorLs.
An investment treaty
will allow both parties to
continue to pursue their
strong commitment to
sustainable development
in economic, social and
envIronmenLuI uuIrs oI
both countries, as well as
to promote a high level
of protection in these ar-
eas. It also shows a com-
mitment to responsible
corporate conduct, ac-
cording to internationally
recognised principles and
guidelines. Furthermore,
both parties will ensure
a transparent dispute
settlement system and a
commitment that the sys-
tem will not be used to en-
courage unsubstantiated
and frivolous claims, as
well the assurance by the
arbitrators respect a code
of conduct.
The agreement will en-
sure a balance between
the governments regula-
tion and legitimisation
objectives and the protec-
tion of investors in Myan-
mar. However, the invest-
ment agreement does not
interfere with the right
of the state to regulate
and pursue public policy
objectives as well as to
contribute to the develop-
ment of the country and
its people.
The key guarantees that
could be granted to EU
investors under a EU-
Myanmar Investment
Protection Agreement in-
clude: protection against
discrimination; protec-
tion against expropria-
tion without compensa-
tion; protection against
unfair and inequitable
treatment; protection for
the possibility to transfer
capital.
The provisions of the
agreement will ensure fair
and equal treatment of
a companys investment
on the same level as any
other investor. By creat-
ing and improving legal
certainty and predictabil-
ity, Myanmar will main-
tain and likely increase
foreign direct investment
in its country to under-
pin its development. As
Myanmar continues to
undergo its reform pro-
cess, it is expected that
the agreement could have
a positive impact on the
process. With focus on
the ongoing legislative
changes in Myanmar,
such as a desired merger
of the foreign and domes-
LIc InvesLmenL Iuws, oer
hope that this agreement
will contribute to the de-
veloping economy.
As other developing
countries implement poli-
cies that deter foreign in-
vestment, such as when
Indonesia terminated their
IPAs with most of the Eu-
ropean countries, Myan-
mars ambition is viewed
as investor friendly.
Myanmar needs in-
creasing amounts for for-
eign investment to reach
its development goals,
and in order to do this,
one oI LIe hrsL sLeps Is
the development of more
IPAs and the avoidance of
double taxation.
Stefanie Siegfried is a
legal consultant at Stro-
hal Legal Group, a law
jrm ogerin hihl per-
sonalised services spe-
cialising in international
and cross border busi-
ness. SLG enjoys a well-
established reputation
across Europe, Southeast
Asia and the Middle East.
In Myanmar, SLG pro-
vides services under the
name U Min Sein & Stro-
hal Associates Law Firm.
The views and opinions
expressed here are the
authors own and do not
necesscril reject M-
anmar Business Todays
editorial opinion.
Myanmar Summary
Aung Phyo
R
ussian Minister for
Economic Devel-
opment Alexei Uly-
ukayev said Russia is eye-
ing to gradually increase
its trade with Myanmar
to $500 million a year by
2017 after he signed an
agreement with his My-
anmar counterpart to set
up a bilateral trade and
economic commission.
At a time of deteriorat-
ing relations between
Russia and the West over
the Ukraine crisis, the
Kremlin has been look-
ing to build economic and
Rossiu to Boost Trude with Myunmur to $goo Million u Yeur
Establishes bilateral economic commission
diplomatic relationships
with developing Asian na-
tions.
Russias current trade
levels with Myanmar sit at
about $114 million a year.
The agreement signed
today will be the basis
for further long-term co-
operation within trade,
economy and science,
the minister was quoted
as saying by the Russian
news agency RIA Novosti.
Following the estab-
lishment of the bilateral
trade and economic com-
mission, Dr Kan Zaw, un-
ion minister for national
planning and economic
development, said: We
believe that coopera-
LIon In LIe heIds oI Lrude,
economy and investment
with Russia from this day
will gain new impetus for
comprehensive and rapid
development.
Russia and Myanmar
have a long history of
friendship and coopera-
tion, which began with
the establishment of dip-
lomatic relations between
the two countries in 1948.
Soviet Union, and later
Russia, has provided us
with much help in the de-
velopment of our country
In vurIous heIds, IncIud-
ing economics..
Ulyukayev said Russia
considers Myanmar to
be one of its prospective
partners and that the
new commission will give
Russia-Myanmar rela-
tions a new dynamic.
TIe hrsL meeLIng oI LIe
newly formed bilateral
trade commission was at-
tended by representatives
from over 60 Russian
companies, including oil
producer Bashneft, state-
owned United Aircraft
Corporation and its sub-
sidiary, Sukhoi Civilian
Aircraft.
Both sides have dis-
cussed bilateral coop-
eration in trade and
investment and the de-
velopment of sectors such
as energy, industry, avia-
tion, agriculture, infor-
mation, technology, com-
munications and tourism.
European Union Commissioner for Trade KareI Be Cucht came to Myanmar in March to kick off the rst
round of negotiations to strike a biIateraI investment protection treaty with Myanmar.
R
e
u
t
e
r
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mmbiztoday.com
22
Kempinski to Open Iirst Myunmur Hotel in November
Aye Chan Wynn
S
wi tzerl and-based
Kempinski Hotels,
Europes oldest lux-
ury hotel company, an-
nounced that it will open
ILs hrsL properLy In My-
anmar, Kempinski Hotel
Nay Pyi Taw in Novem-
ber.
The 141-room and suite
hotel will begin welcom-
ing guests on November 1,
In LIme Ior LIe hrsL ASE-
AN Summit to be held
in the country. Reserva-
tions can now be made via
Kempinskis website, the
company said.
The newly-built proper-
ty is located near the My-
anmar International Con-
vention Center (MICC), a
short drive from the capi-
tals international airport.
Spread over four vil-
las, the hotel features 141
rooms and suites, includ-
ing the Grand Royal Suite,
which, at 1,000 square
meters, is the largest in
the country, the company
claimed.
The hotel design was
conceived with the herit-
age of Myanmar in mind
and an emphasis on local
arts, crafts and furnish-
ings. High ceilings and
broad windows overlook
the extensive gardens,
creating a soothing en-
vironment in which to
relax. The internal room
features are controlled by
individual iPads. The ho-
LeI wIII oer compIImen-
tary wireless Internet ac-
cess to its guests.
A LoLuI oI hve resLuu-
rants and bars will feature
IocuI IngredIenLs und u-
vours complemented by
European culinary tradi-
tion. Six meeting rooms
including the Kispanadi
Ballroom can accommo-
date up to 400 guests for
a variety of private and
business-related func-
tions.
A full-service busi-
ness centre will address
business and secretarial
needs, while leisure fa-
cilities include an outdoor
swimming pool, tennis
courL und hLness cenLre.
Kempinski The Spa will
be added in 2015, the ho-
tel chain said.
In keeping with local
tradition, Kempinski Ho-
tel Nay Pyi Taw features
a teakwood Royal Pavil-
ion inspired by the archi-
tecture of the early Kone
Baung dynasty of the
18th century. In ancient
times, pavilions in Myan-
mar were the welcoming
lounges of palaces and
provided relaxation for
visiting diplomats, kings
and royalty.
Our mission and our
promise is to make the
Myanmar Summary
Myanmar Summary
With Iree Visus, Thuilund Tells Chinese Toorists 'Pleuse Come Buck Soon'
Reviving tourism a priority for military government; China is Tailands single biggest source of visitors
Orathai Sriring &
Pairat Temphairojana
T
o make vacation-
ing in a country still
under martial law
a little more attractive,
Thailands military junta
Is oerIng LourIsLs Irom
China free visas.
Chinese are the biggest
visitors to Thailand, ac-
counting for 18 percent of
total arrivals in July, but
they also proved among
the most nervous, with
numbers slumping more
than other nationalities
after Mays military coup.
Tourism accounts for
about 10 percent of the
Thai economy, and the
imposition of martial law
in May after the coup hit
the industry hard. Win-
ning back the Chinese
visitors is imperative -
spending by mainland
tourists jumped 80 per-
cent to $6 billion in 2013
from 2012.
The slump in tourist
numbers after the coup
was much more pro-
nounced among visitors
from East Asia than from
Europe.
Chen Wei, the manager
of an outbound travel
department for Asia at
Shanghai Huating Over-
seas Tourist Co, said his
hrm Iud onIy one group
of 20 tourists a week
travelling to Thailand
this month, compared
with two to three groups
a week of more than 30
tourists each last year.
The number of visitors
from China fell 41 per-
cenL In June - LIe hrsL
full month under military
rule from Hong Kong
46 percent, Japan 25 per-
cent, and Korea 29 per-
cent, while arrivals from
Europe fell by three per-
cent.
The Tourism Author-
ity of Thailand said its
new tourism promotion
measures included a 30-
day extension of stay for
visitors from 48 countries
and one territory, in ad-
dition to the free visa for
Chinese guests, although
tourists from many other
countries dont need holi-
day visas.
The return of some nor-
mality to Thailand, and
possibly the 1,000 baht
($30) visa saving, could
be starting to work with
visa applications from
China rising, while tour-
ism operators say visitor
numbers picked up last
month.
With less than half their
rooms hIIed, compured
with occupancy rates of
60 to 65 percent in July
2013, Thailands hoteliers
are impatient for martial
law to be lifted now that
political unrest has sub-
sided.
It was eerily quiet
in June and July, said
Boonchai Suwatsakulsa-
wasd, general manager
of the Centara Duangta-
wan Hotel in Chiang Mai,
which targets Chinese
tourists. It only got bet-
ter in August.
The fall in Chinese tour-
ist numbers was keenly
felt in Chiang Mai. The
northern city became a
favourite with Chinese
tourists in 2012 after fea-
turing in the Chinese box-
omce comedy IIL osL
in Thailand, which por-
trayed the travel adven-
tures of two Chinese men.
Tatcha Riddhimat, gen-
eral manager of the Dusit
D2 Chiang Mai hotel, said
the number of Chinese
guests at his hotel fell
nearly 90 percent in June
and July.
Marti al law
While the number of
Chinese visitors appears
to be on the rise again,
the total for this year is
forecast to fall short of the
record 4.6 million who
visited in 2013.
The Tourism Authority
of Thailand (TAT) has re-
vised up its estimates for
mainland visitor numbers
this year to 4.3 million
from about 4 million, said
Thawatchai Arunyik, gov-
ernor of the TAT.
That would still be down
over 6.5 percent on the
year. In January-July this
year, Thailand had 2.2
million Chinese visitors,
down about 24 percent
from last year. The agen-
cy expects a total of 25.5
million tourists this year,
about a million less than
in 2013.
Foreign tourists may
have ruled out Thailand
because most travel in-
surance policies have ex-
emptions specifying that
claims will not be paid if
they are a result of mar-
tial law or civil unrest,
and many countries have
maintained travel warn-
ings on Thailand.
But from late July, in-
ternational tourists visit-
ing Thailand can buy spe-
cial insurance coverage
known as the Thailand
Travel Shield set up by
the TAT in cooperation
with four well-known
Thai insurance compa-
nies, which might have
helped with the recovery.
The military govern-
ment said it was consid-
ering lifting martial law,
particularly in areas that
attract a lot of tourists, a
junta spokesman said on
Wednesday.
We need to lift martial
law to get business going
quickly, said Surapong
Techaruvichit, president of
Thai Hotels Association.
Thai tourism has
bounced back before, re-
covering quickly from
protests in 2010 that
closed parts of central
Bangkok for weeks before
a military crackdown.
Credit Suisse forecast a
sharp rise in tourist num-
bers for 2015, and conse-
quently increased its 2015
economic growth forecast
to 4.5 percent from 3.9
percent. It sees growth of
only 0.9 percent for this
year. Reuters
property the most luxu-
rious hotel in Myanmar,
said Franck Droin, gener-
al manager of Kempinski
Hotel Nay Pyi Taw.
We ure conhdenL LIuL
Nay Pyi Taw will soon
be a popular destination
with international leisure
and business travellers
seeking a relaxing alter-
native to Yangon.
Kempinski Hotel will
Iuve u eeL oI BMW uu-
tomobiles to explore sur-
rounding sites such as the
Bagan temple complex,
Inle Lake, Mount Popa,
the Poe Kyar elephant
camp and other Nay Pyi
Taw and Mandalay cul-
tural heritage sites.
R
e
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t
e
r
s
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_e._.. _ ._~.~ ~..._
~:.e..._.:..~.
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mmbiztoday.com
PROPERTY & REAL ESTATE
23
Myanmar Summary
Contd. P 24... Contd. P 24...
Stute oI Serviced Omce Murket in Yungon {Purt II)
Kevin Heng
T
Ie second und hnuI
part of the article
will present more
analysis on the serviced
omce secLor In Yungon,
scope of future supply
and prices and alternative
to standard commercial
space.
Low occupancy
In our research we have
found that despite the
limited supply of prime
omce spuce, servIced oI-
hces In Yungon were noL
running at full occupancy.
or OmceHub, LIIs couId
be because of they have
been in the market for
only eight months. We
were informed that Keier
received 200 inquiries in
the past year and half but
is only running at 50 per-
cent occupancy. This, we
were told, was because
new companies wishing
to do business in Myan-
mar had severely under-
estimated the conditions
here and its impact on
LIeIr cusI ow und op-
erations, forcing them to
leave for other SE Asian
markets like Vietnam and
Cambodia. Apparently
the high cost of serviced
omces wus noL u mujor
factor.
Lack of i nfor mati on
L Is dImcuIL Ior cusLom-
ers to gather informa-
tion here, about anything
let alone what serviced
omces LIere ure In LIe
market. The serviced of-
hces LIemseIves Iuve
stated that they choose
not to advertise. While
there are certainly some
advertisements in expat
oriented publications like
Myanmore, perhaps the
servIced omce provIders
have calculated that the
circulation of these pub-
lications or websites does
not justify the cost of ad-
vertising.
Scope of futur e
supply
ServIced omces ure noL
expanding for exam-
ple, Keier Group has put
its plans for expansion
(Keier 1, 2 and 3) on hold.
One of the reasons could
be LIe dImcuILy Ior ser-
vIce omce operuLors Lo
predict future demand.
One of the reasons for the
relatively low occupancy
ruLe oI servIced omces Is
because they were for-
muIIy occupIed by hrms,
which came in during the
telecoms bidding process.
The same happened with
the oil and gas tenders. As
it is impossible to predict
when the government will
take similar actions in the
future, it is impossible to
plan for such spikes in de-
mand.
Another reason could
be the impending entry of
larger and more power-
IuI servIced omce brunds
into Yangon. Rumours
that Regus PLC is moving
into Yangon are unset-
tling some of the existing
players. Regus will posi-
tion itself to be a major
player in the market, pro-
viding the highest qual-
ILy omce spuce. However
Regus prices themselves,
the smaller serviced of-
hces wIII Iuve Lo prIce
maybe 10 to 20 percent
lower in order to hold on
to their customers, and
wIen Regus hrsL enLers
the market, it is likely that
they will price themselves
on par with the existing
players in order to quickly
build a customer base.
Although most service
omces ure currenLIy Io-
cated in downtown Yan-
gon, Dagon City has been
slated as an area for ser-
vIced omce deveIopmenL.
Should Regus build their
omce LIere, LIIs couId uL-
tract clients who are tired
oI LIe growIng Lrumc con-
gestions in the downtown
area.
Other serviced of-
hce provIders wIom we
talked to were sceptical
about the entry of new-
comers into the market,
citing the high cost of
property and the steep
learning curve of doing
business in Myanmar.
TIey were conhdenL LIuL
exIsLIng servIced omces
could continue to main-
tain their current rates for
the next two years.
Futur e pr oper ty
pr i ces
Despite their rates, the
opinion of veteran devel-
opers is that serviced of-
hces ure noL necessurIIy
prohLeerIng Irom LIe cur-
rent market situation but
that their high prices are
a necessity for them to re-
coup the exorbitant costs
they are paying to their
land lords.
ServIced omce provId-
ers have no intention of
undercutting each other
as they believe that the
market is large enough
so that they do not have
to aggressively compete
with each other.
It is inaccurate to pro-
ject the percentage in-
crease in rent from 2012-
2013 to 2013-2014 and
beyond. 2013 and 2014
were exceptional year be-
cause of the telecoms and
oil and gas tenders being
held. There was a spike
in demand due to various
companies coming in to
participate in the tenders
such as Telenor, Ooreedo,
and SingTel in telecoms
and Shell, Woodside and
ENI in oil and gas. After
the award of the tender
a wave of consultan-
cies and sub-contractors
from these two industries
would enter the Myanmar
murkeL IIke pIIoL hsIes
following the whales
IookIng Ior omce spuce.
The telecoms, and oil and
gas tenders, in addition to
other aspects of market
liberalisation in the last
three years, is the reason
for the 150-200 percent
increase in property pric-
es over the same period.
In any case, foreign in-
vestors whom we have
interviewed have stated
that prices are approach-
ing the tenants thresh-
old. Any further increase
will simply push invest-
ment away, with negative
results for Myanmars
economic development.
Alter nati ves to
Standar d
Commer ci al Space
Wor ki ng fr om hotel
The option pursued
by most SMEs and sole
proprietors who have re-
cently arrived in Yangon.
With the spike in hotel
prices (Sedona hotel has
W
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in
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mmbiztoday.com
24
From page 23...
PROPERTY & REAL ESTATE
increased its room rate
from $50 a night in 2012
to $200 a night in 2014);
many businesspeople feel
that it is impossible to pay
for both a place to live and
a place to work. In the
past, major companies
were also based in hotels,
as these were the only
places with a regular sup-
ply of power, internet and
other amenities. Since the
spike in demand for prop-
erty in Yangon began, ho-
tels are not renewing their
leases with such compa-
nies and are converting
their premises back into
ball rooms and meeting
rooms. The result of this
is that the companies af-
fected are now adding ex-
tra pressure on property
prices as they are back
in the market. Hotels are
still renting out space for
board meetings but these
rooms can cost $100/hr.
Conver ti ng Condo-
mi ni ums and Vi llas
The usage of villas and
condos Ior omce spuce Is
a popular option; villas
have been used by both
MNCs like Unilever as
well as the multitude of
NGOs based in Yangon.
Myanmar does not have
the same zoning laws as
other countries whereby
commercial activities
cannot be undertaken in
residential areas. This is
the most popular option
Ior hrms LIuL do noL Iuve
to worry about constant
streams of visitors.
TIe key benehL oI LIe
villa option is its second-
ary function of providing
accommodation to expa-
LrIuLe sLu. I LIe com-
pany in question has less
than 10 expatriate em-
ployees, then renting and
converting a condo/villa
Lo un omce-cum-Iome Is
ideal. In the case of Tel-
enor or Ooredoo, with a
head count of over 2,000
employees each, most of
whom are local, it makes
more sense to secure their
own 8-10 storey building
us un omce Ior reusons oI
prestige and security. For
companies whose visitors
are mostly suppliers and
not end customers, it is
convenient to be based in
a less accessible part of
Yangon where property
prices are lower.
The downside is the
initial capital required.
While the price of a villa
in Pyay Road is lower
than one of the few pur-
pose buIIL omce bIocks In
Yangon, it is still high by
international standards.
When dealing with local
landowners, it is normal
and expected to have a
one-year lease which is
fully paid up front. Most
compunIes hnd IL dImcuIL
to deliver $300,000 up-
front to a landlord with
little to no prospect of
short term revenue.
The residential design of
villas and condominiums
does not usually make for
a conducive working en-
vironment. While these
deLuIIs muy uecL some
industries more than oth-
ers, it is still worth noting
that renovating or ret-
rohLLIng u vIIIu cun cosL
between $500,000 and
$1,000,000 and is not tax
deductable.
To summarise, demand
Ior servIced omces Ius
come in two waves: dur-
ing the telecoms, and oil
and gas tenders and after.
The nature of demand has
been a sharp spike as for-
eign companies rush in
to bid, then leave when
they fail, or move into a
permunenL omce wIen
they secure the bid. When
LIese compunIes hrsL ur-
rive, they need to set up
omce quIckIy, Ience LIeIr
preference for serviced of-
hces.
After the tender has
been secured by the op-
erator, its suppliers and
subcontractors follow.
For these companies im-
age is not a priority as
customers do not visit of-
hce quudrunL oILen - und
therefore they dont nor-
mally go for serviced of-
hces. nsLeud LIose hrms
opt for a three to four year
omce Ieuse In Yungon.
There are certain clients
who have secured rela-
tively long leases with ser-
vIced omces, up Lo LIree
years in fact. However we
can assume that serviced
omces cun onIy be u sIorL
term solution given their
costs.
The most likely con-
sumers oI servIced omces
would be industries that
are image conscious. Tel-
enor is a good example of
the behaviour of indus-
tries. During the telecoms
tender they rented most
of the space at My Yan-
gon Omce In order Lo IIL
the ground running but
they have now moved into
their own premises once
they have been awarded
their telecom licence.
Industries which are im-
age conscious but do not
necessarily have the mon-
ey to spend on their own
Grude A omce, ure Iorced
Lo cIoose servIced omces
over converLed uLs or
villas in the short term.
Those with high volumes
of customers however,
may be subtly rejected by
servIced omces due Lo LIe
disruption this will cause
Lo oLIer servIced omce oc-
cupants as well as the se-
curity of the premises.
We can conclude that
the primary source of rev-
enue Ior servIced omces
comes from industries
that are image conscious.
However, this source is
transient until companies
hnd LIeIr own omces. TIIs
explains the high price of
servIced omces us weII us
its low occupancy rate.
For companies which do
not fall into that category,
we recommend alterna-
LIve opLIons, specIhcuIIy
converting residential
upurLmenLs Lo omces cum
home.
Kevin is studying Poli-
tics and International
Relations at the Universi-
ty of York in the UK. This
article is a result of a pro-
ject that Kevin was in-
volved in while working
at Consult-Myanmar Co
Ltd in Yangon. Any views
or opinion expressed in
this article is the authors
oun cnd don't reject M-
anmar Business Todays
editorial opinion.
From page 23...
Singupore's Temusek, JTC in Tulks
to Merge Ioor Reul Istute Compunies
Saeed Azhar, Rachel
Armstrong &
Aradhana Aravindan
S
ingapore state inves-
tor Temasek Hold-
Ings und sLuLe hrm
JTC Corp are in talks to
merge four of their real
estate and urban plan-
ning subsidiaries, aimed
at creating a larger group
that could expand in
Asian cities.
Under the proposed
merger, JTCs Ascendas
Pte and JURONG Inter-
national Holdings Pte Ltd
(JIH) will combine with
Temaseks Surbana In-
ternational Consultants
Holdings and Singbridge
Group, the two compa-
nies said in a statement.
JTC, Singapores state-
owned industrial prop-
erty developer and plan-
ner, and Temasek will be
in exclusive discussions
on LIe specIhc Lerms oI
the merger, the statement
said.
The potential tie-up
would create a giant ur-
ban planning and proper-
ty company, which Singa-
pore will use to capitalise
on the city-states reputa-
LIon Ior emcIency und sus-
tained economic growth.
The enlarged group,
with its complementary
synergIes und sIgnIhcunL
scale, will be well-posi-
tioned to provide end-to-
end solutions for urbani-
sation needs in Asia and
other markets, the state-
ment said.
The two companies did
not state the potential size
of the deal but added that
Ascendas, which runs a
number of business and
industrial parks across
Asia, has S$15.1 billion
($12.06 billion) of as-
sets under management.
Ascendas also has three
listed trusts.
JIH advises cities on
the development of their
industrial areas, while
Singbridge has helped de-
velop a number of indus-
trial parks and eco-cities
in China.
Surbana advises on
town planning and de-
velopment in Asia, Africa
and the Middle East.
The merged group
will have the scale, capa-
bilities and resources to
participate in the entire
urbanisation value chain,
deepen its presence in
existing markets and de-
velop new ones, said Png
Cheong Boon, CEO of
JTC.
Temasek also owns a 39
Despite their rates, the opin-

ion of veteran developers is
that serviced offices are not
necessarily profiteering from
the current market situation but that
their high prices are a necessity for
them to recoup the exorbitant costs
they are paying to their land lords.
percent stake in CapitaL-
and, Southeast Asias big-
gest property developer,
as well as a 100 percent
stake in Mapletree Invest-
ments Pte Ltd.
Myanmar Summary
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mmbiztoday.com
AUTOMOBILE
25
Myanmar Summary
Myanmar Summary
Myunmur to Get Its Iirst Bos Rupid Trunsit System
Htun Htun Minn
T
Ie counLry`s hrsL
Bus Rapid Tran-
sit (BRT) system
will soon be operated on
Waizayandar Road in
Yangon, according to a
recent announcement at
a Yangon Regional Parlia-
ment session.
n AugusL, IocuI hrm
Omni Focus Co was
granted approval t0 op-
erate the bus system and
currently, assessments
and measurements for the
necessary space and lanes
are being conducted, said
U Aung Khin, transport
minister of the regional
government.
Over the next three
months, BRT will run on
Waizayandar road on a
trial basis. During this
time, other bus lines will
not be allowed to oper-
ate on the road, U Aung
Khin said. The service is
expected to be fully opera-
tional in November.
The regional govern-
ment mentioned the plan
in response to a question
posed by U Aye Thin, par-
liament representative for
Tamwe township, over
the prospect of running
bus lines on Waizayandar
road, which stretches
from Tamwe township to
the town of Bago.
Omni Focus Co submit-
ted a proposal to the My-
anmar Investment Com-
mission to invest in and
operate the BRT system,
said U Kyaw Nay Win,
head of the company and
the grandson of the late
military general U Nay
Win.
The companys proposal
includes an investment
of $7 million (K7 billion)
with expected monthly
expenditures of K15 mil-
lion to run the central
management system, K15
mIIIIon Ior LIe Lrumc con-
trol department, K10.8
million for supervising
department, K20 million
to maintain the dedicated
lane for BRT buses and
K1.6 mIIIIon Ior sLu uL
LIe q heId sLuLIons. TIe
company said it has also
paid income taxes.
According to the Yangon
City Development Com-
mittee, since 2013, the
regional government has
been conducting research
that supports the imple-
mentation of the BRT sys-
tem as part of the greater
development scheme for
Yangon.
The Ministry of Trans-
port, the Ministry of Rails
and the Japan Interna-
tional Cooperation Agen-
cy (JICA) are also work-
ing together to implement
the system, which will
work to install support-
ing infrastructure such as
the building of roads, an
International Transporta-
tion System (ITS) and bus
stops.
The system, which is
used internationally, uses
dedicated lanes for buses
and has only a few stops
along the route. The sys-
Lem wIII be hrsL IuuncIed
on a trial basis and will run
wILIouL specIhc bus sLops.
The system plans to use
10 buses, which will charge
a fare of K400 per passen-
ger. The aim of BRT system
is to improve transporta-
tion infrastructure, which
is strained with the rapid
economic development of
the country.
_.,.:.- BRT .,.~
~~, . .. .~:.~
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........ ..._.~.q:~
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. q:~ ...._~ .~. .q~e ~
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._e_~:.._.._e.._.
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q, _., .:. q .. ._. . . . .~: .
q . ~ _.:.._~: .~:~:
q .e: . . .,~ . - ._ ..
..~:.,~.~._.::.._.
.~ ._... q:~ . ~ ~ ~~
~~ .~ . ~ _ . ..q ...
......_~.,_e.: ..:
._... . :.._ _e. ._ . BRT
.,. _e ._... q:~ e: ~. .
.q ~~ .._e .~._....:.
.__e.._. e:...,.:..:
~... ,~~ ~. .~:~.
.:..__e.._.
~. .|~ . ~ ._ ~..q ~,
..'.:. ,. . . e ., q .. ._. . .
q, . .~: .. ~_~ .. q, ~ ,
~ . ..._ ~ . ~. . q~e .
~. _ . . ~ .:. ~ _ .:. _. .
-e , .. . ..q..,. ~~ ~
~,~. ~..,. ~~ .,
e:,._:,~~~ ~..,.
~~ ., ~ . ~ . _:,~~ ~
~. ~~ .,. .~.~...
._~: . , .. . ..q ~ ~~ ~
~..,. ~~ ., Station
,. ~~ ~ ~, ...q~ ~.
~' .,. ..~.~. ~,~
._ . ._~..:._e. ._~: ..
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.....: :._ . ._ e. ._ ~: .
._.:_~:.:.._.
Chinu's Lurgest Aoto Rentul Iirm Luonches Lp To $q6S-m HK IPO
Elzio Barreto
C
hina Auto Rent-
al Inc last week
launched an up to
$468 million Hong Kong
InILIuI pubIIc oerIng, beL-
ting car ownership restric-
tions and higher spending
on travel in the worlds
second-largest economy
will fuel demand for hire
vehicles.
The company, backed by
prIvuLe equILy hrm Wur-
burg Pincus and Hertz
Global Holdings Inc, is
oerIng qz6 mIIIIon new
shares, said a source with
direct knowledge of the
plans, citing details from
a term sheet.
The shares are being
oered In un IndIcu-
tive range of HK$7.50 to
HK$8.50 each, putting
the total deal at HK$3.62
billion, said the source,
who was not authorised
to speak publicly on the
IPO plans and declined to
be named. The IPO is set
to be priced on September
11, with shares starting to
trade on the Hong Kong
stock exchange on Sep-
tember 19.
Chinas car rental mar-
ket is forecast to surge
to 65 billion yuan ($10.6
billion) by 2018 from 34
billion yuan in 2013, the
company said in its draft
IPO prospectus citing
estimates from industry
consultancy Roland Berg-
er.
Long-term rentals of
more than 90 days, which
are mostly used by corpo-
rate customers unwilling
Lo own LIeIr own eeL,
accounts for about 60
percent of the market but
are expanding at a slow-
er pace than short-term
rentals.
Chinas market for
short-term self-drive car
rentals is expected to
grow at an average of 27
percent a year from 2013
to 2018, more than dou-
ble the 13 percent growth
in Brazil and far outpac-
ing the 6 percent expan-
sion in the United States
and 2 percent in Japan,
the company said. Long
term rentals are forecast
to grow 11 percent a year
through the same period.
China Auto Rental, the
countrys largest auto
renLuI hrm, pIuns Lo use
70 percent of the IPO
proceeds to expand its
eeL. L wIII buy q,ooo
to 60,000 vehicles, add-
ing to the 55,000 cars it
had at the end of March,
according to its draft IPO
prospectus.
It said 20 percent of
the funds would be used
to pay down loans and
10 percent would be set
aside for working capital.
The company received
commitments worth $160
million from six corner-
stone investors, includ-
ing $30 million each
from U.S. fund manager
Waddell & Reed Finan-
cial Inc, Hillhouse Capital
Management, hedge fund
Falcon Edge and Hertz.
Davis Selected Advisers
and China Chengtong
agreed to invest $20 mil-
lion each.
The investment pledges
should help it secure de-
mand for the IPO after
China Auto Rental pulled
u $18 mIIIIon U.S. oer-
ing in 2012, citing poor
market conditions.
Reuters
~,~.- China Auto
Rental Inc ~:.:...,.
._ _...._ .~..~~
.e:.~:_ ..'.: ,'
., . ~, e .q q e e:.:.~ .
. ~,.~......q:...
_ . . . . _ . . ~. : . ~ e. .. :.
.q.~ ~:._~ . ~, ~ ~ ~:.
... ~,.~.~.:..
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..:_..~._~: ~:.:.e.
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. . ....:...: ~:. :.. . , .
._ qee: ~....|. ,'
., .~ ~ .q: ._ . ._ e.
._~:. .q._.
q e e:.:. ~ ~. . .
.e:.~:..'.: ...
~ . ... ~ _~:._e
.....'~. .. . .:._. ._e.
_. .. . ..| ...:~. : .e: .~:
..'.: , ... ' .e
~q._~:. ._.:.q....q
..:._~: ~._..e:..
e ..~ .q ._.. ~. ._ .
e.~.:._._. qee:~..
....q:...~~~ ....,.
.:.~ .~~:. ~~ ~
.~ . ~ ._ _e. ._.
The aim of BRT system is to improve transportation infrastructure, which is strained with the rapid economic deveIopment of the country.
A
u
n
g

T
h
a
n
t
mmbiztoday.com
26
IT & TELECOM
Apple, Google Appeul Rejection oI
$g-m Hiring Settlement
Dan Levine
F
our technology com-
panies including
Apple and Google
blasted a US judge for re-
jecting a proposed $324.5
million settlement over
hiring practices in Silicon
Valley and asked an ap-
peals court to intervene,
uccordIng Lo u courL hIIng.
PIuInLI workers uc-
cused Apple, Google, Intel
and Adobe in a 2011 law-
suit of conspiring to avoid
poaching each others em-
ployees.
Last month US District
Judge Lucy Koh in San
Jose, California, rejected
the proposed class action
settlement, saying the
amount was too low.
n u courL hIIng IusL
week, the companies
asked the 9th US Circuit
Court of Appeals to over-
rule Kohs decision.
Koh committed clear
legal error and imper-
missibly substituted the
courts assessment of the
value of the case for that
of the parties who have
been litigating the case for
more than three years,
they wrote.
Adobe declined to com-
ment, as did an attorney
Ior LIe pIuInLIs. Repre-
sentatives for the other
LIree hrms couId noL Im-
mediately be reached for
comment.
Tech employees alleged
that the conspiracy limit-
ed their job mobility and,
as a result, kept a lid on
salaries.
The case has been close-
ly watched because of the
possibility of big damages
being awarded and for the
opportunity of a glimpse
into the world of some of
AmerIcu`s eIILe LecI hrms.
PIuInLIs bused LIeIr
allegations of conspiracy
largely on emails circu-
lated among Apples late
co-founder Steve Jobs,
former Google Chief
ExecuLIve Omcer ErIc
Schmidt, and some of
their rivals.
PIuInLI uLLorneys ur-
gued Koh should approve
the deal because the
workers faced the risk of
losing the case in an ap-
peal.
In rejecting the pro-
posed settlement, Koh
cited substantial and
compelling evidence that
Jobs was a, if not the,
cenLruI hgure In LIe uI-
leged conspiracy.
Koh repeatedly referred
to a related settlement last
year involving Disney and
Intuit. Apple and Google
workers got proportionally
less in the latest deal com-
pared to the one involving
Disney, Koh wrote.
To match the earlier set-
tlement, the latest deal
would need to total at
least $380 million, Koh
wrote.
n LIe hIIng, AppIe,
Google, Intel and Adobe
said Kohs approach was
rigid and formulaic.
Instead of approving the
deal, Koh dismissed the
parties analysis of the tri-
al risks, suggesting that,
unless the settlement was
larger, the court had - in
ILs own words - 'wusLed
years on this case.
Reuters
Houwei Lnveils Phone With Supphire Gluss,
Iinger-Sensor, Jost uys BeIore Apple's Iphone 6 Releuse
Gerry Shih
H
uawei Technolo-
gies Co Ltd un-
veiled last week a
slate of new devices meant
to showcase the Chinese
companys hardware
technology, just days be-
fore Apple Inc releases its
highly-anticipated iPhone
6 on Sept 9.
Huawei, which began as
a telecom equipment com-
pany in 1987, has rapidly
transformed itself in recent
years into the worlds No.3
smartphone maker behind
Samsung Electronics Co
Ltd and Apple.
Today it markets its
devices as comparable
to Samsung and Apple
products, which are often
viewed by consumers as
the technological cutting
edge.
Huawei said it would
release a limited edition
of its high-end Ascend
P7 phone with a sapphire
glass display the cost-
ly but durable material
thats been the subject of
industry chatter follow-
ing reports this year that
Apple would begin mass
producing devices with
sapphire.
Huawei also said at an
electronics trade show
in Berlin that its Ascend
Matenew Ascend P7
phone7 phablet would
become LIe hrsL AndroId
smartphone on the mar-
keL wILI u hnger-prInL
sensor, a technology that
wus hrsL seen on AppIe`s
iPhone 5s, announced last
September. Reuters
Myanmar Summary
Myanmar Summary
MicrosoIt, Poblishers Try to Stop
'Cutustrophic' Google IL eul
Foo Yun Chee
G
oogles antitrust
deal with EU regu-
lators was criti-
cised by Microsoftand
other competitors in a
last-ditch attempt to in-
uence Europeun Com-
petition Commissioner
Joaquin Almunia before
Ie Ieuves omce uL LIe end
of October.
The Competition Com-
missioner is preparing to
decide whether to wrap
up the case or hand it over
to his successor when
his mandate ends, after
spending three years ex-
amining whether Google
squeezes out rival services
in online search results.
Almunia reached a pre-
liminary deal with the
worlds most popular In-
ternet search engine in
February. He has told
18 complainants that he
InLends Lo rebu LIeIr
grievances and is now ex-
amining their responses.
Microsofts director of
competition law, Jean-
Yves Art, said the US soft-
ware company was par-
ticularly concerned about
Googles contractual
curbs on advertisers mak-
Ing IL dImcuIL Ior LIem
to switch to other online
platforms. Reuters
Myanmar Summary
R
e
u
t
e
r
s
R
e
u
t
e
r
s
Apple . Google ~~.|
~~ ~..q ~, ,_.._:~ . ~
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._.
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..:._~..~ ,_..,.._
e.~: ~..q~,.,~q:.
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~q: q ~ ~_ ~:. .. . ~ ~
.~~|._~.~...q: ~_.
.:....~.~_ MicrosoIt
. ~_.:. _.~~.~.:.~
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Almunia ~:. , ..~:~ ~
:.~,~ q:..~~..
.... .,:~..e~:....._
~.,_e .~e, ~ ~ . ~ . ~
._ .
.~:.q,: Almunia ._
Google ~.,_e ~~:,~
q:.e.q...:.~ _.~
~, ..: . . . , . .:. ~:.
.,:~.:._..q.q .....,
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Huawei ._ ,.~-.~
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~ .~~: q~.,~
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._._e.._.
Huawei ._ ,.:e,.:.
.~ . :_. _ . .:...:
~._. Ascend P7 e,.~
~~,~.~_e .q:...:.
._e .._.
mmbiztoday.com
IT & TELECOM
27
Myanmar Summary
Ross Cormack, CEU of Uoredoo Myanmar, speaks to the media after
a press conference in Yangon.
O
o
r
e
d
o
o

M
y
a
n
m
a
r
Ooredoo Myunmur Cots own Internet
Lsuge Price by More thun HulI
May Soe San
Q
atar-based tel-
ecoms hrm Oore-
doo announced a
vuIue InLerneL oer Ior
its customers in Myan-
mar, slashing internet us-
age price by 60 percent.
Ooredoos internet
charges on the Pay As
You Go service now will
be available for K10 per
megabyte (MB), reduced
from K25 earlier, said
Ross Cormack, CEO of
Ooredoo Myanmar, while
ouLIInIng LIe new oer
during a press conference
in Yangon.
TIe LeIecoms hrm suId
LIIs sIgnIhcunL ruLe re-
duction is for Ooredoo
customers who want to
spend more time brows-
ing the web via their
smartphone devices.
The news follows the
recent announcement
that Ooredoo added over
1 million customers to its
network, since launching
services commercially on
August 15.
Myint Zaw, Ooredoos
national sales director, said
LIe oer wouId muke IL
simpler for more custom-
ers to enjoy a better value
browsing experience.
TIe eecLIve ruLe per
MB is actually lower on
some of our internet packs
but we have noticed that
not all customers are opt-
Ing Lo use LIese. TIIs oer
will make sure that we are
delivering better value to
all of our customers.
Cormack said: Weve
listened to our customers
and analysed their feed-
back. We want to ensure
that we make it simple
for everybody to enjoy the
very best value and be-
IIeve LIuL LIIs oer wIII do
exactly that.
At the same time, our
network optimisation is
picking up pace and with
LIIs oer we encouruge
even more customers to
trial the incredibly fast
internet service our next
generation technology de-
livers.
At the press conference,
Cormack demonstrated
the progress in the on-
going network rollout and
stressed that recent steps
to optimise the network
would translate into a
much better experience
for customers.
Weve been upfront
about the enormous up-
take in demand and some
network challenges that
we have faced in areas of
downtown Yangon, said
Cormack.
We have deployed the
right technology and em-
ployed the right people for
us to overcome these chal-
Ienges und ure conhdenL
we will continue to deliver
sIgnIhcunL ImprovemenLs
both in coverage and sig-
nal strength to our existing
customers.
The Ooredoo Myanmar
network covered 7.8 mil-
lion potential custom-
ers wIen IL wus omcIuIIy
launched on August 15,
buL LIe hrm uL u recenL
press event revealed this
number has increased to
over 9 million customers
within the last two weeks.
As well as the addition
of over 20 base stations
in Yangon, new towns
and cities now covered
by the Ooredoo network
include: Thayet, Thayar-
wady, Taungoo and Pyi-
nooIwIn, LIe hrm suId.
Were really motoring
ahead now, Cormack said.
Its just amazing to be
rolling out our ... services
to more and more people
and communities.
Ooredoo ._ _~_ . _.~
.:...: ..e,.~,..:.
. _., . , ._. ~ ~:,~ ~. ._.
. ~. ~. .:.~ . .:..:
. , .:.. :._ e ...~. .~:
._ _e. ._ ._. ~ . ~ q~
.,~ ...:._e.~.q:..~
.~.~.,.._ Ooredoo
...~~..|.~..,..~:
.q:...q_.._e..|._.
q,~,_. Sule Shangri-La
e ~e~ ~... ._ .:,e ~ .
.~..~ Ooredoo_.,.:-
~...:~q:q.. Ross
Cormack ~ ~~:,~
~. ._.. ~. ~. .:.~ ~...
. ~ q .. .._.:_~:.. .|._ .
_. ~ ,~q~ ., . ._ Ooredoo
~~:,~~ (PAYG ) Pay
As You Go, .....:~
.....:._.,._e ....
._._..:.._ e..,.
:._e...: 1 MB ~.
~.:. 1 MB ~~ ~..:
.....: q.~: ._ _e. ._ .
Smart phone .:. ~.._._..
~ ~:,~ ~ ~.~ ~.~ .:.
.:.~. , _~:_~:. .. . . .:..
. .e...:.~ .:~.:.
._~:.~. . . Ooredoo ...
. ._._..:.~~~ ..
.:.:.,.:...:.....~
._ ..:.~.~.._e..|
._ . . . .:._.:...: . .. .
. _ ._ . .:. ~ ~:,~
.:.~.:.:...'. ...e~
.~ .:. :. :..q:~ . ._
~~ . .. .~ .~ _Ooredoo
- _.,.:_._~.q:.,_~:.
.q... ._..~:~ ~,.~:
~ .~q...~..,~ ~~:
,~~.~..~.:. 1MB
. .. .e:.~: .~: ,_ ..|~e .''
e ._.:._.
mmbiztoday.com
28
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 2 3 4 5 6 7 RGN SIN 19:05 23:40 TigerAir TR2826 1 2 3 4 5 6 7 SIN RGN 17:05 18:25 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
*PPleaasee noote thee dday change for the deparrture time too Hong Kongg.
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
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)
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
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
Mann Yadanarpon Airlines
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
Reudy, Set, Trunslute! Ooredoo Suys Myunmur's
Iirst-Iver Trunslute-u-thon "u Soccess
Tin Mg Oo
K
han Academy Bur-
mese Translation
(KABT) and Oore-
doo Myanmar hosted
LIe counLry`s hrsL ever
Translate-a-thon event
in Yangon on August 10,
followed a week later by a
second event in Mandalay
on August 16.
Hosted at Ooredoos of-
hces In Yungon und LIe
Jeerson CenLre In Mun-
dalay, the purpose of the
Translate-a-thon was
to gather volunteers to
translate as many of the
Khan Academys educa-
tional videos as possible
into the Myanmar lan-
guage, making these ma-
terials more accessible to
the people of Myanmar.
Khan Academy is a
noL-Ior-prohL orgunIsu-
tion founded by Sal Khan
with the goal of changing
education by providing
free, world-class educa-
tion for anyone through
educational videos. Khan
Academy has over 6,000
videos, which covers K-12
math, biology, chemistry,
pIysIcs, hnunce und IIs-
tory, among others. Over
10 million people around
the world view the videos
each month.
Yangons 65 translate-
a-thon volunteers trans-
lated 140 Khan Academy
videos, Ooredoo said.
With the 36 videos trans-
lated at Mandalays event,
attended by 47 volun-
teers, the overall num-
ber of videos translated
reaches 355, more than
double the 160 videos that
existed in the Myanmar
language prior to this.
Thiri Kyar Nyo, Ooredoo
Myanmars Community
Engagement spokesper-
son, said: We are de-
lighted by the success of
these two events. This is
O
o
r
e
d
o
o

M
y
a
n
m
a
r
only the start of our work
to make education more
accessible to the people
of Myanmar, helping sup-
port the countrys huge
appetite for learning.
Soon these educational
materials will be readily
available to our custom-
ers, in their pockets at
all times, on their mobile
phones. We look forward
to hosting more of these
events along with Khan
Academy Burmese Trans-
lation.
Ashley Takami from
KABT said: Until re-
cently only 179 Khan
Academy videos were
available in the Myanmar
language. Following both
these events we now have
355 videos on subjects
including math, science,
computer programming,
IeuILI, und hnunce Lruns-
lated into the Myanmar
language.
Our work doesnt stop
here, following the in-
credible success of these
events we plan to host fu-
ture Translate-a-thons to
continue these translation
eorLs, und IeIp muke
free, world class educa-
tion available to everyone
in Myanmar.
Both events marked the
start of a partnership be-
tween Ooredoo Myanmar
und KABT. TIe hrms suId
together they will help en-
sure the Khan Academys
educational materials be-
come freely available in
the Myanmar language.
The companies said their
overall objective is to
bring the opportunity for
a world-class education to
the nation at no cost.
The partnership will
also support the roll-out
of these videos as a re-
source for education pro-
viders across Myanmar
with Ooredoos network
providing online access
to these materials in both
rural and urban areas.
Ooredoo _.,.:. Khan
Academy Burmese Translation
(KABT)~ . ...| .__., .:_._
- ......: _.,.::.:
. :.:_.,..~ q,~,_.
~ _.~. ~~ q~.,.
.. ..._.~ _. ~ . ~' q~
.,~~ ~.....~:_..:
~.._...._~._.
q,~,_. Ooredoo_.,.:-
, .... ....._. J efferson
Centre ~~ ~.._...._~
..:e ._., .::.:. :.:
_., _. . .:.- q_ q e .~ . :
Khan Academy ~~:,~
.:.~.:..'~q..: ._:
.q.. .~ .~ ..:- . e e .:.
....:..:.~ _ .,.::.:
. :.:_.,._.._e _.,.:
_._. .... ._._..:.
e . - . ee .:. ~ ... ..:
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._.
q,~,_.~ ~.....:
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Khan Academy --.e..|.
~,~ ~ Acer . .....:
~ , .~:.:.. ~ .q:~ e _.
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.e:~ ..:..~,: ~, . ..:.
._ Khan Academy q ._:
.q.-.ee..|. ,' e~
_.,.::.:. :.:_.,.
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:.:_., _...:. ~'~. . .
Khan Academy ~ _.,.:
:.:. :.:_.,._...:.
._:.q.-.ee....|. ,,'
eq.:._._e.._.
Ooredoo _., .:-. . .~ .
.q.. _ ., _ ~:..q.., .,:
..'.q_~:_~ ._.....
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~ .~, ~. ..:~:.q. .|~e .
.|e: ~,.~~.,, ~._._
q ~. , . e . .,~ ~:. .
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.:.e: ..._:.q., .~.~
~ .e.~.:~~~.~
~ . ~ ~ ~ ~. ~ .~ ~
e,..~~~.. qe..~:
.:_e..|~e. Khan Academy
Burmese Translation , ~~
~ .,:~.,:.q._. ..
_. . .~ .~ ~ ~ ... :.e
q.|~e''e ._.:_~:..._.
IT Iirm Invests $1, Million Ior
Myunmur I-Visu System
Htun Htun Minn
M
yanmars E-Visa
program, which
was launched
on September 1, was im-
plemented with an in-
vestment of $17 million,
said U Kyaw Moe Naing,
managing director of My-
anmar Ease Net Co, the
company contracted to
operate the system.
The company, working
in a joint venture with the
Ministry of Immigration
and Population, has been
approved to run the sys-
tem for a total of 10 years
- un InILIuI hve-yeur Lerm
with an automatic exten-
sIon oI unoLIer hve-yeur
term.
The company will
mainly provide technol-
ogy and IT equipment.
We have hired two foreign
IT technicians, one based
in Myanmar and other
in Singapore, U Kyaw
Moe Naing told Myanmar
Business Today.
The company bore the
expenditure of the joint
venture, while the earn-
ings will be divided as the
terms state in the tender,
U Maung Maung Than,
director general of the
Department of Immigra-
tion said.
The database for the
E-Visa program will be
stored inside the country,
while back up servers are
located abroad for secu-
rity measures, which also
lends to the protection
against loss of data, U
Khin Yi, union minister
for immigration and pop-
ulation, said.
Originally, 41 countries
were approved for the E-
Visa program, and two
more countries were add-
ed at the request of the
Union of Myanmar Trav-
el Association (UMTA).
Currently, holders of an
E-Visa are only allowed
to enter through Yangon
International Airport,
but eventually points of
entry will be expanded to
include airports in Man-
dalay and various other
towns and cities soon, U
Khin Yi said.
Myanmar issues six
types of visas compris-
ing: tourist, business, en-
try, transit, diplomat and
multiple entry visas. In
June 2012, the govern-
ment started easing visa
restrictions by allowing
visa on arrival for busi-
ness, entry and transit
visas. The launching of
E-Visa program is a con-
tinuation of the govern-
menL`s eorLs Lo euse en-
try restrictions for those
wishing to visit Myanmar.
E-Visa has been need-
ed for a long time. Theres
no doubt the tourism sec-
Lor wIII guIn benehLs Irom
it. It will be better if all of
the countries in the Euro-
pean Union are included,
U Hla Aye, member of the
central executive commit-
tee at UMTA, told Myan-
mar Business Today.
According to the minis-
try, applicants for E-Visa
are required to have a
valid passport for at least
six months, photos tak-
en within the past three
months and pay a non-
refundable fee of $50 be-
fore the application is ap-
proved.
Myanmar Summary
_.,.:.~ .~~:.
~ q~~ .~~...._
E-Visa .,.~~~ ~..q~,
..'.: ~ .,. q..._...
:.._~:. Myanmar Ease
Net Co.,Ltd . .,..,..
.|,~~:..~:...~ MBT
. ._.:._.
e. E-Visa .,.~~~
. ~ . _~ ._~. .q.. _._ .
~ ~:.~, _~ ._:,. , .~ . ~
~ ....|._ ~~.~~.~:
~_ .e: ..: q ~ _..Myanmar
Ease Net Co.,Ltd ~.,_e
~..q. .. .. .~e
.. ....|. ~~ .. ~.|
.~:_.:._.._e.._.
e .~ . ~ ._ ,_ .._:
. IT .. _ .~~ ~ ~. ~
....: . :.._ _e. ._~: .
.q._.
mmbiztoday.com
SOCIAL SCENES
30
Myanmar HRD Forum at Sedona Hotel
Opening Remarks By Gunhong Intl Co.,Ltd. HRD Strategic People Resourcing Presentation at the Myanmar HRD Forum. HRD Spearkers of the Myanmar HRD Forum. HRD
Participants at the Myanmar HRD Forum. HRD Question & answer section at the Myanmar HRD Forum. HRD Group Photo at the Myanmar HRD Forum. HRD
Pisanu Suvanajata, Ambassador of Tailand to the Union of Myanmar,
gives his speech at the event. Phyo Tu
U Khin Tun, managing director of Capital Automotive Ltd.
Phyo Tu
Sara Lamsam, President and Chief Executive Of cer, Muang Tai Life
Assurance Public Company Limited. Phyo Tu
Muang Tai Life Assurance Public Company Limited grants a scholarship
to the Yangon University of Economics. Phyo Tu
Dr Maung Maung Tein, Deputy minister of Finance.
Phyo Tu
Attendees pose for a Photo. Phyo Tu Ribbon cutting. Phyo Tu
Staf pose for a photo. Phyo Tu
A lucky draw prize is awarded. Phyo Tu
Grand Opening Ceremony of Muang Tai Life Assurance,
Yangon Representative Of ce
Celebrating the 111 years of Ford Heritage,
Lucky Draw Opening Ceremony
mmbiztoday.com
CLASSIFIEDS
31
mmbiztoday.com
32
ENTERTAINMENT
Myanmar's former beauty queen May Myat Noe gives a news conference, seated next to the 2U14 Miss Asia Pacic WorId
crown, at a restaurant in Yangon.
S
o
e

Z
e
y
a

T
u
n
/
R
e
u
t
e
r
s
Dethroned Myanmar Beauty Queen and Pageant
Om ciuls Tossle over Tiuru
Aye Win Myint & Narae Kim
S
outh Korean organisers
oI LIe MIss AsIu PucIhc
World pageant threatened
to call in the police last week in
their row with dethroned My-
anmar beauty queen May Myat
Noe, demanding she return a
gem-studded tiara from her
home country.
Pageant founder Choi Youn
accused May Myat Noe of
absconding with the tiara,
which media have said is worth
$100,000 and which she won
in South Korea in May, becom-
Ing Myunmur`s hrsL InLernu-
tional beauty queen.
She was dethroned because
she was ungrateful, untrust-
worthy and had lied, the
pageant organisers said in a
statement reported by Asian
media.
It is now a matter of national
image and reputation and she
should be held accountable for
(the tiara), Choi told Reuters
in Seoul.
He said organisers planned to
hIe u compIuInL wILI poIIce.
May Myat Noe told a packed
news conference last Tuesday
in Yangon, Myanmars biggest
city, that she was still queen
when she returned home with
the tiara. It was only after
arriving back home that she
received a letter informing her
she had been dethroned.
May Myat Noe added that
she would give back the tiara
only after receiving an apology
from organisers who she said
had spread lies about her that
damaged the integrity of my
country.
Once such remorse becomes
apparent, I shall return the
crown willingly, without trace
of reservation, she said.
May Myat Noe accused the
pageants organizers in Myan-
mar of falsifying her age from
16 to 18. She said organisers in
South Korea attempted to coerce
her into having breast augmen-
tation surgery, but she refused.
Among other allegations, May
Myat Noe said organisers told
her she would need to escort
some business tycoons when-
ever they require my company
in order to raise money to
produce her music album.
Choi denied the allegations.
L Is uL no, Ie suId. L Is
not true.
Choi said the former beauty
queen had chosen to undergo
surgery in Busan on August 20
and was legally allowed to do
so despite her age, because her
mother had consented.
He accused May Myat Noe
of lying about her age on her
application, but said organis-
ers allowed her to participate
anyway once they discovered
she was actually 16.
Fans of the former beauty
queen have posted messages of
support on her Facebook page.
Sue them for defaming sis!
posted Vivienne Wang. You
are naturally gorgeously beau-
tiful! You do not need a single
plastic surgery whatsoever!
The truth is on your side,
posted Lwan Chit Wai.
Some Facebook users were
less supportive.
Just return the tiara and
stop all this nonsense in your
life, posted Mi Mi Naing.
Reuters
oes It Mutter Which Hund We Lse?
Morley J Weston
Y
ears ago in China, I was
helping a friends little
brother on an English
essay, when my friend said to
me in a hushed tone, Your left
hand dont write with your
left.
She continued, He some-
times writes with his left hand.
I dont want him to see you do
it, he might think its OK.
In the United States, we take
it for granted that we can use
either hand. My grandfather
had told me stories of being
forcibly switched to using his
right hand in grade school, and
seemed pleased that education
had changed to allow me to
write with whichever hand was
more natural.
Growing up, I was scolded for
my slanted handwriting, but I
was never encouraged to use
my right.
Over the years, Ive learned to
use many tools right handed,
such as chainsaws, scissors,
can openers, computer mice,
and sewing machines. I worked
as a carpenter for several sum-
mers, and dreaded using some
tools, with their safety guards
inevitably placed on the wrong
side, rendering me clumsy
and vulnerable. Still, I found it
useful sometimes to hit nails
that nobody else could hit,
leaning way out to the left side
on a ladder, or elbow in a deep
corner.
When I left the US, I found
that I was regarded as an
anomaly throughout Asia,
where most people are forced
to use their right hand from a
young age. I adapted where I
needed to, using my right to
tear chapattis in South Asia or
accept money in China. Locals
have been curious about why
I used my left hand for just
about everything, and a few
mentioned various supersti-
tions about me being mentally
dehcIenL, u psycIopuLI, good
luck, or a genius.
It seems strange that people
would be jealous either way,
People Ive met who were
switched, seemed perfectly
well-adapted to tool use by
adulthood. Being allowed to
use either hand is regarded
as a personal prerogative in
the United States, a choice
that only we are allowed to
make. However, we make that
choice by about six years old,
too young to understand the
consequences of this lifelong
decision. In the end, staying
left handed and being switched
oers LIe sume umounL oI Iree-
dom, and both options have
their advantages.
Lefties are better boxers,
worse tailors, more likely to
be competent artists, but also
more likely to injure them-
selves with a chainsaw. Im
happy to use my left hand,
but if I were switched, I feel I
wouId be jusL us suLIshed.
S
h
u
t
t
e
r
s
t
o
c
k

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Myanmar Business Today - Vol 2, Issue 36

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September 11-17, 2014

The lower population cal-

Despite their rates, the opin-

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