July 10-16, 2014

Myanmar Business Today

mmbiztoday.com
mmbiztoday.com July 10-16, 2014| Vol 2, Issue 27 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Myanmar Summary
Contd. P 18...(LITI) Contd. P 18...(LITI)
Contd. P 5...(Trade Target)
Contd. P 5...(Trade Target)
Inside MBT
Myanmar Admitted as a Candidate
to EITI Resource Transparency Initiative
May Soe San
M
yunmur wus uc-
cepLed us u cun-
dIduLe counLry
Lo LIe ExLrucLIve ndus-
LrIes Trunspurency nI-
LIuLIve (ET) IusL week,
u hrsL sLep Lowurds be-
comIng u member oI LIe
gIobuI InILIuLIve uImed uL
brIngIng greuLer Lrunspur-
ency und uccounLubIIILy Lo
the oil, gas and mining
sector.
TIe SouLIeusL AsIun
counLry now joIns qq
countries that have signed
up Lo LIe ET SLundurd,
which requires extensive
disclosure and measures
Lo Improve uccounLubIIILy
In Iow oII, gus und mIner-
als are governed.
AccordIng Lo LIe ET
bourd decIsIon, Myunmur
needs to meet all of the
requIremenLs In LIe ET
Standard within three
yeurs Lo become ET
compIIunL, IncIudIng pub-
IIsIIng LIe hrsL ET Re-
porL by Junuury z, zo16.
I LIe ET ReporL Is
noL pubIIsIed by LIIs
deadline, Myanmar will
be suspended, LIe ET
bourd suId.
Clare Short, chair of
LIe ET, suId Myunmur`s
udmIssIon Lo LIe ET
comes at a critical time as
LIe counLry Is now open-
Ing up ILs vusL nuLuruI re-
sources Ior IoreIgn InvesL-
ment.
By ImpIemenLIng LIe
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Authorities to Rachet
Up Inspection to Meet
Trade Target
Phyo Thu
U
nion minister for
commerce U WIn
Myint said the
government will increase
Lrude-rouLe monILorIng
in Myanmar in hopes of
meeting the countrys
trade volume targets this
hscuI yeur.
Myanmar is aiming to
have a trade volume of
$z bIIIIon In zo1q-1 Y.
SLurLIng In JuIy, unLI-
smuggIIng mobIIe en-
forcement teams has
started inspections at
Yungon nLernuLIonuI AIr-
port and four other ports
in Yangon region, which
is in addition to the two
sites already monitored
by governmenL Iorces.
The increase means
LIe governmenL`s mobIIe
Leums ure InspecLIng u Lo-
LuI oI seven porLs IncIud-
Ing LIe HLee Dun, AsIu
WorId, Myunmur ndus-
LrIuI, Bo Aung Kyuw und
SuIe Iurbours.
AuLIorILIes suId uny-
one Iound curryIng IIIe-
gal goods in or out of the
counLry wIII be IursIIy
hned.
Commerce und Con-
sumer AuIrs DepurL-
menL DIrecLor U TIn Ye
WIn suId upcomIng pen-
uILy Increuses In AugusL
couId uIso see oenders
facing up to three years
jail time if discovered
transporting illicit items.
TIIs wIII IeIp reduce
tax evasion and promote
consumer proLecLIon, U
Tin Ye Win, told Myan-
mar Business Today.
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A man digs for sulphur sand near a Chinese copper mining dump in Sarlingyi township at Sagaing divi-
sion in Myanmar.
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AuLomuLed Curgo CIeurunce by zo16:
CusLoms DepL P-
UnempIoymenL RuLe HIgI DespILe RIse
In Jobs P-;
Tender Process und EvuIuuLIon CrILerIu
Announced Lo DeveIop KyuukpIyu SEZ
P-zq
July 10-16, 2014
Myanmar Business Today
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2
LOCAL BIZ
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Board of Editors
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Ph - 09 40 157 9090
Regional Editor - Tom Stayner
International Editor - David Ross
Reporters & Contributors
Htun Htun Minn, May Soe San, Kyaw Min, Wai Linn Kyaw,
Aye Myat, Aung Phyo, Zwe Wai, Phyo Thu, David Mayes,
Sherpa Hossainy, Aundrea Montao,
Tom Stayner, David Ross, Stephen Seng
Art & Design
Zarni Min Naing (Circle)
Email - zarni.circle@gmail.com
Ko Naing
Email - nzlinn.13@gmail.com
DTP
May Su Hlaing
Translators
Wai Linn Kyaw, Phyu Maung,
Aye Chan Wynn
Advertising
Seint Seint Aye, Moe Hsann Pann, Htet Wai Yan,
Zin Wai Oo, Nay Lin Htike
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09 4211 30133
Business News in Brief
Semi -gover nment SMI D Bank to be li sted i n
2015
The Small and Medium Industrial Development
Bunk (SMDB), u pubIIc bunk run by MInIsLry oI n-
dusLry, wIII be IIsLed uL Yungon SLock ExcIunge wIen IL
emerges In zo1, IocuI medIu reporLed MunugIng DIrec-
Lor TIn Muung HLuy oI SMDB us suyIng. HuvIng over
o,ooo sIures, LIe bunk mude over K; bIIIIon (ubouL
$;.z mIIIIon) prohL durIng LIe hscuI yeur on MurcI 1,
uccordIng Lo u bunk sLuLemenL. Yungon SLock ExcIunge
Is scIeduIed Lo be opened wILI ubouL hve pubIIc compu-
nIes In zo1 und uL LIe momenL Myunmu Agro-busIness
PubIIc Co (MAPCO) und AsIu Green DeveIopmenL Bunk
(AGDB) Iuve conhrmed Lo be IIsLed LIere.
1oreign prms seek licences for micropnoncing
A growIng number oI IoreIgn bunks und hnuncIuI In-
sLILuLIons ure uppIyIng Ior IIcences Lo operuLe mIcroh-
nuncIng busInesses In Myunmur, IocuI medIu reporLed
DepuLy Inunce MInIsLer Muung Muung TIeIn us suy-
Ing. WILI more LIun ;o percenL oI ILs popuIuLIon poor,
Myunmur oers u Iuge opporLunILy In LIe mIcrohnunc-
Ing busIness Ior IocuI und IoreIgn hrms, Muung Muung
TIeIn suId. TIere ure 186 IocuI und IoreIgn hrms pro-
vIdIng mIcrohnunce In Myunmur.
Toiuon Cooperotioe Bonk to open o ce in
Yangon
TIe bourd oI TuIwun CooperuLIve Bunk (TCB) recenLIy
upproved u resoIuLIon Lo seL up u represenLuLIve om ce
In Yungon, TuIwunese medIu reporLed. TCB IndIcuLed
LIuL Myunmur Ius u good geogrupIIc posILIon, Iorm-
Ing u brIdge beLween nuLIons und murkeLs In SouLI und
SouLIeusL AsIu. TCB esLImuLed LIuL bunks currenLIy
operuLIng In Myunmur cun onIy meeL 1o percenL oI LIe
demand for loans.
Mgonmor sees trode depcit in Apr-Mog
Myunmur suw u Lrude dehcIL oI $qq;.; mIIIIon In hrsL
Lwo monLIs (AprII-Muy) oI LIe hscuI yeur zo1q-1, uc-
cordIng Lo om cIuI sLuLIsLIcs. DurIng LIe perIod, IoreIgn
Lrude LoLuIIed $q.o bIIIIon, wILI exporL umounLIng Lo
1.q bIIIIon und ImporLs sLundIng uL z.qq bIIIIon, LIe
sLuLIsLIcs sIowed. OI LIe LoLuI exporL, murILIme Lrude
uccounLed Ior $1.z8 bIIIIon, wIIIe border Lrude mude
up $z6.1; mIIIIon. OI LIe LoLuI ImporL, murILIme Lrude
uccounLed Ior $z.16 bIIIIon, und border Lrude mude up
$z.;6 mIIIIon. n hscuI yeur zo1-1q (AprII-MurcI),
Myunmur`s IoreIgn Lrude reucIed $zq.q6 bIIIIon, wILI
murILIme Lrude uccounLIng Ior $zo.8 bIIIIon.
Locol inoestment reoches olmost $g hillion
ocuI InvesLmenL Ius reucIed ubouL $ bIIIIon us oI
May, according to the Directorate of Investment and
Compuny AdmInIsLruLIon, wILI mujorILy oI InvesLmenL
projecLs beIng In munuIucLurIng und consLrucLIon sec-
tors. Manufacturing received the highest amount with
$1 bIIIIon, IoIIowed by consLrucLIon ($8oo mIIIIon) und
IoLeI und LourIsm ($;oo mIIIIon) secLors.
Mgonmo Airuogs to hecome Mgonmor No-
tionol Airuogs
SLuLe-run currIer Myunmu AIrwuys Is Lo be renumed
Myunmur NuLIonuI AIrwuys IoIIowIng LIe enucLmenL oI
the new aviation legislation, local media reported. The
Myunmur AvIuLIon BIII Ius been submILLed und Is be-
ing discussed at the Lower House of Parliament after
LIe upprovuI oI LIe Upper House. Myunmur AIrwuys
In ebruury sIgned u conLrucL Lo Ieuse Len new BoeIng
uIrcruIL Irom US-bused GE CupILuI AvIuLIon ServIces Lo
expund ILs InLernuLIonuI IgILs.
Coo't eorns $jh in toxes for zo1j-1q 1Y
AuLIorILIes Iuve receIved neurIy $ bIIIIon, q.q per-
cent of Myanmars GDP, in total tax revenue for the
zo1-1q hscuI yeur, LIe nLernuI Revenue DepurLmenL
suId. TIe umounL Is LIe IowesL compured Lo oLIer coun-
LrIes In LIe regIon, wIere CumbodIu geLs 11.6 percenL
oI ILs GDP Irom Lux, TIuIIund 16. percenL und PIIIIp-
pInes 1z.q percenL respecLIveIy.
Myanmar Summary
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
3
July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
Myanmar Summary
Myanmar Summary
EY Expands Assurance Services in Myanmar
L
ondon-bused pro-
fessional services
orgunIsuLIon ErnsL
und Young (EY) suId IL Ius
expanded in Myanmar to
oer ussurunce servIces
through the admission of
u new member hrm.
TIe new enLILy, EY UTW
(Myunmur) Ld, udds
to the multidisciplinary
suite of tax, transaction
and advisory services that
EY Ius been oerIng sInce
AprII IusL yeur Lo compu-
nies that are seeking to
invest in Myanmar.
Mux oI, ASEAN und
Singapore Managing
PurLner uL EY, suId: TIIs
is an important develop-
ment for us as we are now
even more connected and
responsive to the evolv-
ing needs of our clients
who have increasingly
expressed interest in this
new frontier market.
TIe 6o-member EY
UTW (Myunmur) wIII be
connecLed wILI EY`s oLIer
Phyo Thu member hrms ucross LIe
AsIu-PucIhc, IeverugIng
EY`s gIobuI sLrengLI, scuIe
and experience in helping
cIIenLs do busIness In My-
unmur. TIe hrm Is one oI
LIe bIg Iour uudIL hrms
In LIe worId besIdes De-
loitte, PwC and KPMG, he
said.
oI suId by uddIng us-
surunce Lo LIe hrm`s ex-
isting tax, advisory and
transactions services, it
seeks to help its clients
provIde conhdence Lo
their stakeholders and
buIId LrusL In LIe cupILuI
markets.
SucI LrusL und con-
hdence wIII be core Lo
sustaining the economic
health and growth of the
country, which resonates
with our purpose of help-
Ing Lo buIId u beLLer work-
Ing worId, oI suId.
U TIn WIn, counLry
munugIng purLner oI EY
In Myunmur, suId: Our
ubIIILy Lo provIde muI-
tidisciplinary services
LIuL ure underpInned by
strong local market ex-
perience and seamless
access to our extensive
gIobuI resources, wIII udd
even greuLer vuIue Lo boLI
domestic and interna-
tional companies across
a variety of sectors that
are poised for expansion
in Myanmar, as well as
to the development of the
counLry.
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Tesco Chairman Meets Suu Kyi to Broker Deal to Enter Myanmar
T
esco chairman Sir
RIcIurd BroudbenL
had a meeting with
opposILIon Ieuder Aung
Sun Suu KyI, brokerIng u
deal for the grocer to en-
Ler LIe SouLIeusL AsIun
country, according to
BrILIsI medIu reporLs.
National League for
Democrucy (ND) CIuIr-
person Suu Kyi has pre-
viously said she would
weIcome eLIIcuI, respon-
Aye Myat sIbIe InvesLmenL Irom
BrILIsI busInesses wIen
sIe vIsILed LIe UK IoI-
lowing her release from
house arrest.
BroudbenL, wIo Lruv-
elled with group com-
mercial director, Kevin
Grace, expects to initially
set up contracts with new
suppliers and then look at
launching Tesco stores in
the country.
BroudbenL LoId LIe
MuII: We Iuve u bIg sLore
network in Thailand and
Malaysia which are close
neIgIbours Lo Burmu so IL
wouId muke sense.
A Tesco spokesmun suId
LIe vIsIL Is uImed Lo deveI-
op sourcIng reIuLIonsIIps.
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
From page ...(Trade Target)
From page ...(Trade Target)
Automated Cargo Clearance by 2016: Customs Dept
A
n automated cargo
clearance system is
seL Lo be InsLuIIed
uL uII oI Myunmur`s cus-
Loms enLry poInLs by LIe
end oI zo16 In u bId Lo Iu-
cilitate trade, the Customs
Department said.
Htun Htun Minn Bused on Jupun`s NIp-
pon AuLomuLIc Curgo
Clearance System, it will
coordinate all customs
und IreIgIL enLry InLo My-
anmar, eliminating direct
conLucL beLween cusLom
om cIuIs und LIe pubIIc, uc-
cording to the department.
The development of
the system, supported
through grants from the
Japanese government,
wIII see LIe cIeurunce cu-
pucILy oI Myunmur cus-
Loms om cIuIs Improved,
U WIn TIun, depuLy dI-
recLor oI Myunmur Cus-
toms Department, said.
As Lrude und InvesL-
ment are increasing, trade
volumes are increasing
Loo. By usIng LIIs sysLem
we expect to save a lot of
munpower, Ie suId.
U WIn Kyuw, depuLy dI-
recLor oI LIe nLernuI Rev-
enue Department, said
LIe sysLem provIdes u me-
dIum beLween cusLoms
om cIuIs und LIe ugencIes
provIdIng servIces regurd-
Ing operuLIonuI proce-
dures when dealing with
imports and exports.
He said software testing
Is expecLed Lo be hnIsIed
by LIe end oI zo1, In LIme
Ior u zo16 InLroducLIon.
U WIn Kyuw suId LIere
mIgIL be dIm cuILIes Ior LIe
agencies using the system
us muny Iuck LIe munpow-
er or expertise. However,
in the long run the system
wIII uILImuLeIy benehL once
the software is properly
understood, he said.
VIeLnum`s curgo cIeur-
ance system, the same
modeI Lo be ImpIemenLed
in Myanmar, went online
In Muy In coIIuboruLIon
with Japan.
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Automatic Cargo Clearance
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Myanmars trade is
comprIsed oI 8o percenL
maritime transportation
und zo percenL crossbor-
der Lrude - wIere mobIIe
teams have seized illegal
goods worLI over K 1; bII-
IIon ($1; mIIIIon) In vuIue.
TIe counLry`s Lrude voI-
ume has increased more
LIun $1o bIIIIon over LIe
past three years, spurred
on by u $6 bIIIIon Increuse
In zo1-1q hscuI yeur.
ToLuI Lrude ouLpuL Is ex-
pected to reach as high as
$ bIIIIon LIIs hscuI perI-
od endIng In MurcI zo1.
The government will
need Lo expund IocuI mur-
keLs Ior domesLIc produc-
tion to meet Myanmars
Lrude LurgeLs uILer Im-
ports have exceeded the
countrys exports in the
hrsL sIx monLIs oI LIe
year, experts say.
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Containers at Asia World Port in Yangon.
S
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
Myanmar Summary
CGG Opens Myanmar Subsurface
Imaging Centre

runce-bused geo-
physical services
company CGG said
IL Ius opened u subsurIuce
imaging centre in Yangon
to service and support the
unLIcIpuLed growLI In My-
unmur`s oII und gus expIo-
ration sector.
The new centre is the
hrsL oI ILs kInd Lo be
opened In Myunmur by u
mujor InLernuLIonuI geo-
science company.
SopIIe ZurquIyuI, sen-
Ior execuLIve vIce presI-
dent, geology, geophysics
and reservoir, CGG, said:
WILI LIe Myunmur gov-
ernments recent award
oI 16 onsIore und zo o-
sIore bIocks Lo InLernu-
tional and local oil and
gas companies, we foresee
a quickening in the pace
of exploration activity
over LIe nexL 18 monLIs.
ZurquIyuI suId CGG`s
subsurIuce ImugIng cen-
tres launch underlines its
commILmenL Lo purLIcI-
Aung Phyo pating in the opening up
oI Myunmur Lo LIe InLer-
nuLIonuI energy und pe-
troleum industry.
We InLend Lo buIId on
our new centres strong
IocuI presence Lo IeIp un-
lock the potential of this
emergIng murkeL.
CGG said the aim of the
cenLre Is Lo gIve InLernu-
tional and local energy
and petroleum companies
operating in Myanmar
onsILe uccess Lo CGG`s In-
dusLry-IeudIng subsurIuce
imaging technology and
expertise.
Over LIme LIe cenLre wIII
uIso ucL us u buse Irom
wIIcI CGG InLends Lo ex-
pund ILs busIness In LIe
country, it added.
The new centre is
equIpped wILI sLuLe-oI-
LIe-urL Iurdwure und
CGGs seismic processing
soILwure Lo meeL LIe sub-
surIuce ImugIng requIre-
ments of CGGs clients
operating in Myanmar,
LIe hrm suId.
A IusL, dedIcuLed neL-
_. .. ~._.. ~ CGG . , .
~, ..: . ~ . ~ ._ ._..~:~
.~ . :_. . .e: _. .. ~:~
q, ~ , ~ e . . _ ~ .~~ .:
._e .,.,.:...: _.,.:
.- .q,. .:~.:~.
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. .... . .. :.._ _e. ._.
~_~ ..:.. ~~: . . .
~ . ~ _~.~. . ~ ~ . . . , .
. . _.,.:.~ .:.q:~e
work IInk Lo CGG`s SIngu-
pore Iub Is uIso uvuIIubIe
for processing large data
volumes, it added.
TIe Leum oI IocuI Myun-
mar geophysicists running
the centre is expected to
expand with the anticipated
growth in the Myanmar oil
and gas exploration sector,
CGG said, adding that it is
committed to training and
deveIopIng IocuI duLu pro-
cessing talents in Myanmar.
CGG, esLubIIsIed In
1q1 In PurIs, Iud u zo1o
revenue oI Cz.186 bIIIIon
.._...: _~_~.~ ..
.._e.._.
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~e''e CGG -..-.
.,.. .q,.:~.:~.
. ~ ._:q ~_~.~, .~. ..:
. . ~ e.. ~. e ~:
und Ius ubouL q,8oo em-
ployees worldwide.
~q:~ .._.
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_._ ~ .. : . . .:.: _e, ~~
.e _~..:._.. ...'..|~.:
.e ...~~q ~.:.~.:~
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,.~ .._.
CGG -.~_ .~ . : _., .:
.~ ..~.,..: _._
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..,..~~.~ CGG -
.,:~....'._..~:~ .~.:
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,..~:~ ~._._._ CGG
._ ,e ...:.. . . , ..
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.,:~....' .._.~qe:.:.
. CGG ._.._~:~.~:.q.
..: e ~ .:. ~. . :._ . .
_.,.:.q ._..~:~.~.:
_...e:..~...:.~ _e_
._.....:..__e.._.
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~.~ .:.~ ., ... q, ~~ ~
CGG singapore .._.
..:_.,.,..:~,q~. ~
.~.q._~:. .q._.
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q~e.:._. _.,.:.-
.q,. .:~.:~.~..e:
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e _e ..:. . ~~ . ~ .|_ ~ . :.
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. ..: .... ~ q ._ ~: .
CGG ~ ._.:_~:.._.
May Soe San
L
ocal conglomerate
Shwe Taung Group
LogeLIer wILI NEC
AsIu PucIhc unnounced
LIuL LIe hrms wIII pro-
vIde neLwork und secu-
rity infrastructure for the
Myanmar International
Convention Centre in the
countrys capital Nay Pyi
Taw.
TIrougI LIe deuI, NEC
AsIu PucIhc, u subsIdIury
oI Jupunese T und neL-
work LecInoIogIes com-
puny NEC Corp, wIII be
the main information and
communIcuLIons LecInoI-
ogy (CT) provIder Ior LIe
centre.
We ure excILed Lo purL-
ner with the Shwe Taung
NEC, Shwe Taung to Provide Network
and Security Infrastructure for MICC
NEC Asia Pacifc appointed main information and communications technology provider for the Myanmar International Convention Centre
by Shwe Taung Group
Group us LIe muIn InIor-
muLIon und communIcu-
tions technology provider
In ImpIemenLIng sLuLe-oI-
LIe-urL LecInoIogy und
security infrastructure
Ior LIe Myunmur nLernu-
tional Convention Centre
to ensure the safety of its
guesLs, Tun Boon CIIn,
munugIng dIrecLor, Re-
gIonuI CompeLency Cen-
Lre Ior PubIIc SuIeLy, NEC
AsIu PucIhc, suId.
We see u greuL deuI oI
potential for growth and
development and are
commILLed Lo conLrIbuLe
our expertise in providing
T InIrusLrucLure Lo gov-
ernmenL om ces und LIe
private sector, to meet the
technology demands of
LIe counLry, Ie suId.
TIe Myunmur nLernu-
LIonuI ConvenLIon Cen-
tre is a newly completed
6o,ooo squure meLer con-
venLIon und exIIbILIon
centre that recently held
LIe ASEAN SummIL zo1q,
which Myanmar hosted
Ior LIe hrsL LIme.
NEC AsIu PucIhc de-
veIoped LIe CT InIru-
sLrucLure Ior LIe conven-
tion centre, consisting
of network and security
infrastructure, integrated
voIce, duLu und vIdeo ser-
vices, and a master clock
sysLem Ior LIe govern-
ment.
NEC`s InLegruLed se-
curity and safety system
consists of access control
sysLem soIuLIons uLIIIs-
ing contactless smartcard
technology, as well as
surveIIIunce sysLems con-
sisting of intelligent video
camera solutions.
TIe musLer cIock sys-
Lem enubIes LIme syn-
chronisation of all devices
within the centres ICT
InIrusLrucLure. NEC wIII
provide maintenance and
support for these critical
servIces, IncIudIng IeIp-
desk and event support,
it said.
Training for using the
sysLems wIII be provIded
Lo Nuy PyI Tuw CILy De-
veIopmenL CouncII sLu
and the local team in
charge of maintenance in
boLI EngIIsI und Myun-
mar language.
NEC Ius u sLrong pres-
ence in Myanmar, with
over 35 years of experience
working in the country.
Myanmar Summary
_._ ~ .. . , .~ . . .q .~:
. NEC Asia Pacifc ~
....|._ .,_._.~:q _.,.:
~_._ _._ . q:_ .:. . ~:
~ ~ , q~ . . _. .q.~._..
..:.:. ~......__e.
._~:. ._~_:.._.
..:~_.~~q ., IT
.~,.~:~,q~,_.._:
~.~ NEC - .~.~:~.
NEC Asia Pacifc ._ ~. .|
. ~:~~ ~ ~. ~.~ .
~.~~.~. .~.e.q.
,_.._: (IT) _e_._....
.__e.._.
_., .:~_._ _._ . q:_ .:.
. ~:._ ._ ~:... . ~
_., .:. ~ ... ..~ .
~ ..._ ~~, . . . ASEAN
..._.:.~...q: .~:
'~,~~~ .~ ._ ~~e ~~,.
q._ _.:.. _...,.._e.
._.
NEC -..|.._.._..q.
.,..:.~ ..~~~~.._.
,_.._:~. ~.,....
.,. .:.,_ .~ _~ q_ _ .
, . . ~ .q:.,. .:..|~ ._
..: _ ~_ .q..,. .:. .|~
._~:. .q._. NEC ._
_.,..:.~ ,..........
.:..__e.._.
_.,. .:.. .. q, ~~ ~
.,_._ .~: _. .~: ._ . .~: .
~, . ..:.. ,e . , .. . .
.q.~e~ ..~.~,....
.:..__e.._.
Deputy Minister for Energy U Aung Htoo speaks at the inauguration ceremony for CGGs new Myanmar
subsuface imaging center.
C
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
7
LOCAL BIZ
Myanmar Summary
Unemployment Rate High Despite Rise in Jobs
Htun Htun Minn
T
Ie number oI em-
ployed people in
Yangon region is
seL Lo Increuse by more
than 33 percent this year
compured wILI zo1z, uI-
though unemployment
rate still remains high,
uccordIng Lo hgures re-
Ieused by LIe MInIsLry oI
ubour, EmpIoymenL und
Social Security.
Yangon has seen a yearly
Increuse oI uImosL 6o,ooo
individuals registering
their employment activi-
ties with the ministrys
LownsIIp Iubour omces,
wILI LIuL hgure expecLed
Lo rIse by neurIy 1oo,ooo
by LIe end oI zo1q.
n zo11, LIere were
ubouL 6oo,ooo work-
ing people in Yangon
region which increased
Lo 666,66q In zo1z und
;zo,;qq In zo1. TIe
number Is esLImuLed Lo
cross 8oo,ooo In zo1q,
according to the ministry.
Those who register their
employment activities
with the ministry must
pay tax on their incomes
buL ure eIIgIbIe Ior ben-
ehLs In LIe counLry`s so-
cial welfare program and
worker protections.
TIese hgures ure wIdeIy
beIIeved Lo IIde Iurger
informal unemployment
issues, particularly those
Iuced by newcomers Lo
Yangon.
However, experts say
unemployment needs
Lo be uddressed wILI In-
creasing development
and growing regional
populations set to put fur-
ther strain on state infra-
sLrucLure - us hnunced
through government in-
come.
Despite these yearly
increases, Yangon still
remuIns beseL by unem-
ployment, due largely to
the lack of employment
opporLunILIes uvuIIubIe,
as well as a coordination
probIem wIere job IunL-
ers do not have access to
IormuI job IIsLIngs, neL-
works or recruitment
agencies.
The Yangon city region,
Iome Lo uImosL 8 mII-
IIon peopIe, bousLs uImosL
zoo,ooo workers In LIe
garment industry, one of
the largest employment
sectors, with increasing
foreign investment pre-
dicted to increase these
numbers.
MosL peopIe IeguIIy
working in Yangon has
come from other parts of
LIe counLry. Muny job op-
porLunILIes Iuve uIso been
creuLed by LIe urrIvuI oI
foreign investment, with
LIe number oI IormuIIy
registered workers almost
doubIIng, U TIeL HLun,
director of the Depart-
menL oI ubour, suId.
Consequently there is
u Iurge gup beLween LIe
working population and
the total population of
Yungon. AILIougI job
opportunities have in-
creased in Yangon, people
without any network are
IookIng Ior jobs LIrougI
job ugencIes wIIIe some
people pursue work in fa-
miliar surroundings and
contexts.
TIe IIgI number oI
unemployment is partly
conLrIbuLed by LIe Iuck oI
recruitment opportuni-
ties for youths from the
governmenL, U SuLI BIn
TIur BuLe LoId un upper
house section of the par-
liament.
ExperLs suy more job
opporLunILIes musL be
created to employ the
yearly rising population
of Yangon and reducing
unemployment rate de-
pends on the economic
development of the coun-
try.
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q, ~ , _. q . ..q q . ., ., ..|.
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..: ~.q~~ ~ . :._ .
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e.~,_~._:,. .q._.
q,~,.: ~q:.~..~
.,~ . . .:.~.:.. ,e ~
.:~..:.~e.q..._....
.~ ~.:.~_.:.~.q:~.:
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~.:._~. e,~..~~~~
.... ...,..|...:~q.:
. ~e ''e ~. . ..:. , _~:.
. .. ._:,. , _ ~:..q.. .
..~,.~ ._.:._.
.~q q,~,~...._~.
~~. ...:.~~:.~.:.
....~.,..: ~_..
. . , ..:.~ . . .:. . . . , .
.~: q _. . ~, q ..:. . .:.
.:..: ~_~....~ ~
.q:~ . . ~ .~ q ._ ~: .
.q._.
e .~ . ~. . ..:..:.
~. . ~~ ~. ~.. .
~ .~~ .:_ . ..: . _ .:.
q... _.....:.. ..:.
q .. ._. . . . .:.. . ~ .q:~
.:_ . .~ ._ ~: _ e. ._ ~: .
.q._.
q,~,_.~ ~....~
.,. . ,. . , ..~: ~ ~.~
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.:..: ~.:..._e._.. ~.~
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~,_~._:,. .q._.
A worker carries a box of goods at the jetty of Yangon river in Yangon.
U
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
Myanmar Summary
Myanmar Summary
Myanmar Summary
State-run Banks Now Subject to Same Fees for Forex Licences
May Soe San
S
LuLe-owned bunks
wIII now be requIred
to pay the same fees
puId by prIvuLe bunks
for foreign currency ex-
cIunge IIcences In u bId
Lo promoLe equuIILy,
according to the Central
Bunk oI Myunmur.
PrevIousIy, sLuLe-owned
bunks Iud Lo puy Iower
IIcence Iees oI Koo,ooo
($oo) Ior IoreIgn ex-
change privileges, com-
pured Lo LIe Kz,ooo,ooo,
plus additional costs such
as licence renewal or ex-
tension fees, charged to
prIvuLe bunks.
Starting from July 1,
sLuLe-owned bunks, prI-
vuLe bunks, IoLeIs und
oLIer busInesses IoIdIng
foreign exchange licences
is charged the new rates
for applications, renew-
als, late applications or
licence extensions.
These will include up
Lo Kz,ooo,ooo ($z,ooo)
sLurL-up Iees Ior IoId-
ers of foreign exchange
dealer licences, with a K
oo,ooo ($oo) renew-
uI cosL every hve yeurs,
with an additional fee of
K o,ooo ($o) Ior every
month if the fee payment
is late.
Dealers wishing to ex-
pand their foreign ex-
change licences must
also pay an additional K
1,1oo,ooo Iee.
Non-bunk groups IoId-
ing money changer licenc-
es wIII now be cIurged
u K-1,ooo,ooo ($1,ooo)
sLurL-up Iee wIIIe prIvuLe
bunks und IoLeIs wIo
wish to change money
musL puy Kzoo,ooo Ior
their licence.
Non-bunk busInesses
with foreign exchange li-
cences were previously
exempLed Irom beIng re-
quired to renew their li-
cences.
Interra Completes Yet Another
Myanmar Oil Field Drilling
Aye Myat
S
Ingupore-bused oII
and gas exploration
company Interra
Resources Ltd disclosed
Tuesday that its jointly
controlled entity, Gold-
peLroI JoInL OperuLIng
Company Inc, has com-
pleted development well
CHK1188 In LIe CIuuk oII
heId In Myunmur us un oII
producer.
CHK1188 Is LIe hrm`s
twelfth well drilled in the
CIuuk oII heId und nIne-
teenth in Myanmar in
zo1q, nLerru suId.
nLerru Ius u 6o percenL
interest in the Improved
Petroleum Recovery Con-
LrucL oI LIe CIuuk heId
und uIso owns 6o percenL
of Goldpetrol which is the
operuLor oI LIe heId.
Since the well was
drilled using Goldpetrols
TO o rIg, cosLs were
comparatively low, the
hrm suId. nLerru`s sIure
of the cost of drilling
was funded from existing
funds on hand.
CHK1188 wus drIIIed Lo
u LurgeLed depLI oI z,;o
feet in the Chauk South
IuuIL bIock us u souLI
oseL Lo producIng weII
CHK11;.
TIe prImury objecLIve
Ior LIe hrm Is Lo produce
oil from reservoirs in this
IuuIL bIock wIIcI Iuve noL
been druIned by currenL
existing wells, it said.
CHK1188 Ius been
completed through casing
perIoruLIons over 1o res-
ervoIrs LoLuIIIng ;o IeeL
Ior 1;o burreIs oI oII per
day.
. ~:. ~._ .. ~ .q, .
.:~.:~ . q :.e .q.~ . ~
_e.._ Interra Resources
Co.,Ltd ._ ..:~.q,._.q
. . ~ ~ ~. ~ ~~ ~ .q,
~ .e: q :.e . qq . ._~:.
._~_:.._.~..|..~~
~.~ ~~ ._ Interra
~.~-..:~.q,._ . ~ .
._.:~ . . ~ ~ _e. _.. ~. .|. .
~~~:. .q ~.~.~.
..~ . . ~ _. ._e. ~: Interra
~.,_e .q, q :.e .~ q . ~..'
~ '~ q:..,. ~~.~_.~
qq.__e.._.
Interra ._ ,.~qq:.
._ .q, . . ~ ~ ~ ....| .
~..~~..e:.q,q_
. , .:._. .q_.,..~~q~.
.,..q,. . .._ ..| .~~
~.q,q_.,.:.._.
._.:....,....:.
~~ ~ . . ~~ .:. ~
.~:~ . ._ ~~ . ~. .q~
.:.~._. ~. ~ q~. .~
.~:~.._e _.,.:..~:
-e~. .~.qq ._.
..~.:..: .~q
~:.~ ~. .|. , .:..:.~
.....: .q:.. . . ~ .,
..: ._ . -e ~ ._ ~. .q
.e~..: ...,~e~._.
_e..:._~~~ e.~.
~,.~_e..:..q, ...,.
:..:.~ ~.._.,.__._.
.~_.._e.._.
~.. _._. q:~ . _.:.. .
. .:..q: .~e .e:~ ~:.._
. . , .. . . .e ~ . _.:.
..:.~ee.q:....e.
. . ~ ..: :...:
..~.:. ..~~
.:. e~e.:.. ~.e~
..:~e ~._ ..:.~:.. .~.,
_e . . . q:~, ...:~
:._ . . .~ ~. .~ ._ . .
.,:~ ~..:~ :._. .. . , .
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_e.._.
Ministry Invites Bid to
Upgrade Rail Ticketing System
May Soe San
T
he Ministry of Rail
Transportation has
announced an open
tender from interested lo-
cal individuals and com-
panies for the installation
and operation of an elec-
tronic ticketing system
for Yangons circular and
suburbun LruIn IInes.
The automated system
is set to cover 15 of the
major stations of Yan-
gons metropolitan rail
network and is hoped to
improve speed and man-
agement of the network.
We ure doIng LIIs Lo
improve our service qual-
ILy, un omcIuI Irom LIe
tender reviewing commit-
tee of Myanma Railways
under the Ministry of Rail
Transportation said.
TIIs Is u new procedure
for us and we cannot just
install automated gates
IIke you mIgIL hnd over-
seus.
AppIIcuLIons Ior sub-
mIssIons wIII be uccepLed
unLII JuIy 1q. TIe wInner
of the tender process will
be uwurded u LIree-yeur
contract to install and op-
erate the system.
TIere wIII be LIckeL
sellers, with commuters
ubIe Lo obLuIn LIckeLs once
they have paid. However,
LIe umounL oI prohLs kepL
by compunIes wIII be de-
cided in the tender pro-
cess, LIe omcIuI suId.
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.q:....,. (Computerized
ticketing System) ~ . .~
. ~~.~..:q~.:.._
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. .qq._.
q, ~ , _. .~ . . ._.e ... .
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An AGD Bank branch in Yangon. From now, state-run banks have to pay the same fee to get foreign
exchange licences as private banks like AGD.
K
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M
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
9
Myanmar Summary
Notice of
Apology
I
L wus brougIL Lo Myanmar Business To-
days uLLenLIon by LIe Myunmur ResLuu-
runL AssocIuLIon (MRA) LIuL u quoLe In u
IeuLure urLIcIe LILIed GeLLIng A 'ReusonubIe`
uncI: Yungon`s WesLern ResLuurunL Scene
by u conLrIbuLor Mr. JonuLIun Hurvey In our
puper`s VoI z, ssue zz, June -11, Puge q, Ius
InsuILed Yungon`s popuIuLIon und Myun-
mur`s counLrymen. TIe quoLe wus Irom un In-
terviewee of a survey on Yangons restaurant
scene, bused on wIIcI Mr. JonuLIun Hurvey
wrote in the piece.
IrsL, we wouId IIke Lo unequIvocuIIy ex-
press our deepesL sorrows und sInceresL upoI-
ogies for the unnecessary aggravation, grief
and the profound anguish that was caused to
anyone, any association, Myanmars amazing
peopIe und LIe beuuLIIuI counLry ILseII by Mr.
Harveys article. We deeply regret such an
oversIgIL LIuL so undersLundubIy couId upseL
the people of Myanmar and even expats who
are living or have visited here.
We Iooked InLo LIIs bIunder und LrIed Lo geL
to the root cause of it. When we get an article
Irom our conLrIbuLors our sub-edILor puneI
edits the copy and sends it to the layout team
who eventually puts the piece on the paper.
We Iound ouL LIuL LIe oensIve IInes were
edited out in the last edited version of the
urLIcIe, wIIcI wus upIouded In our websILe
beIore LIe prInL edILIon cume ouL, wIIcI cun
be reud uL LIIs IInk: ILLp:JJmmbIzLoduy.comJ
urLIcIesJgeLLIng-reusonubIe-IuncI-yungon-s-
wesLern-resLuurunL-scene. BuL Ior some Im-
prudenL error on our purL LIe un-edILed copy
went into the print version.
However, this does not take away the fact
LIuL u sombre mIsLuke Ius Iuppened Irom
our purL und we do uccepL IuII responsIbIIILy
for it. We are extremely disappointed and feel
IrusLruLed uL LIIs Iupse. BuL Ior LIe record, IL
wus, Is und never wIII be our InLenLIon Lo IurL
and aggrieve Myanmars lovely people and
the great country itself through our paper and
we Iuve muInLuIned LIIs sLunce Lo LIe besL oI
our ubIIILy us u young, versuLIIe und growIng
busIness pubIIcuLIon In LIe IusL-cIungIng me-
dIu scene In LIe reIorm-eru Myunmur.
TIe wrILer Mr. JonuLIun Hurvey In u sLuLe-
ment emailed to us said he apologises if
unyone Lukes oence Lo LIe remurk buL Ie
cIuImed Ie wus mereIy quoLIng wIuL unoLIer
individual had told me of their perception of
Myunmur Iood. He udded: As sLuLe In my
urLIcIe, `m exceedIngIy Iond oI Myunmur cuI-
sIne und reuIIy upprecIuLe IL und LIIs Is by no
means my own opinion ... I didnt intend any
oence.
We wouId uguIn IIke Lo express our sIncer-
est apologies and look forward to our readers
kInd undersLundIng regurdIng LIIs uppurenL-
ly upsetting error.
Sincerely,
TIe Bourd oI EdILors
Myunmur BusIness Toduy
Aothorities to Allow OHering Insorunces in LS
Phyo Thu
M
yunmur Insur-
ance regulations
are set to change
wILI more hrms seL Lo be
permILLed Lo oer Insur-
unce In US doIIurs, om -
cials said.
The systems would see
insured companies pay
their insurance rates in
US doIIurs, wIIIe LIe In-
surunce busInesses wIII
uIso be ubIe Lo seLLIe
cIuIms In US doIIurs.
KBZ, Grund GuurdIun
nsurunce, IrsL NuLIon-
uI nsurunce und Aung
TIILsur Oo nsurunce
currenLIy oer Insurunce
puckuges In US doIIurs,
Iowever, U Aung Soe Oo
oI KBZ suId IL`s noL cIeur
wIuL kInds oI busInesses
ure uIIowed Lo be Insured
In US doIIurs.
PermILs ure Lo be Issued
bused on perIormunce.
our compunIes, so Iur, ure
Lo be grunLed permIssIon
buL uny operuLIons cunnoL
be sLurLed unLII LIe ucLuuI
instructions have come
ouL, Ie suId.
CupILuI oI $oo,ooo
und governmenL upprov-
uI Is requIred beIore uny
compuny Is ubIe Lo sLurL
operuLIons wILI compu-
nies expecting permits to
be receIved uL LIe end oI
the year.
L`s u good LIIng Insur-
unce cun be Issued In u
foreign currency. This is
murkeL expunsIon. or-
eIgn compunIes ure com-
Ing In und cun obLuIn In-
surance in dollars, it is an
ImprovemenL In consum-
er service.
However we beIIeve
LIIs prucLIce wIII noL uI-
fect the foreign exchange
murkeL, Dr Muung
Maung Thein, chair of
Myanmars Insurance
ReguIuLIon Bourd suId.
He Ioped LIese Insur-
unce producLs wIII pro-
vIde reIIubIe Insurunce
protection for increasing
numbers oI IoreIgn busI-
nesses operuLIng In My-
anmar and spur further
investment.
However, domestic
uwureness or use oI Insur-
ance is still low, with only
; mIIIIon In u counLry oI
6o mIIIIon covered by IIIe
insurance.
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q IKBZ, Grand Guardian
Insurance, First National
Insurance . .~:..:.
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Ministry Calls Tender to Implement E-Visa System
Htun Htun Minn
T
he Ministry of Im-
migration and Pop-
uIuLIon (MP) wIII
let local companys vie for
the implementation rights
to Myanmars electronic
visa application system
(E-VIsu), wIIcI uIms Lo
manage the increased in-
ow oI LourIsLs und busI-
nesspeople seeking entry
into the country.
DeLuIIs ubouL LIe crI-
teria companies have to
IuIhII Lo meeL LIe govern-
ments prerequisites for
LIe roIe ure uvuIIubIe uL
the Department of Immi-
gration and National Reg-
istration.
AuLIorILIes Iuve Iong
planed to implement
LIe E-VIsu sysLem, used
around the world, to ease
the regulation require-
ments that determine the
entry and exit of foreign-
ers in and out of Myan-
mar.
Local technology com-
punIes wILI omcIuI over-
seus buckgrounds wIII
have preference in the
MP`s decIsIon-mukIng
process, which ends July
16, uccordIng Lo LIe De-
partment of Immigration
and National Registra-
tion.
However, UnIon oI My-
unmur TruveI AssocIuLIon
SecreLury U Nuung Nuung
Han said the countrys in-
LerneL speed musL be up-
gruded beIore LIe E-VIsu
sysLem cun be InsLuIIed.
E-VIsu Is un onIIne ser-
vIce wIIcI couId doubIe
LIe number oI IoreIgn
enLrIes InLo Myunmur, U
Naung Naung Han, said.
TIe E-VIsu wIII IeL up-
plicants from countries
without a Myanmar em-
bussy, or LIose IIvIng Iur
away from the countrys
consuIuLe, Lo be noLIhed
online if and when their
visa is approved.
Currently, foreigners
wIo submIL vIsu uppIIcu-
tions have to wait more
than a week for their re-
quesLs Lo be processed,
and fees can vary ac-
cording to an applicants
country of origin and visa
type.
AuLIorILIes Iope LIe E-
Visa system can reduce
this waiting period to
three days and eliminate
any need for travellers to
go to one of Myanmars
embussIes.
Two years ago the gov-
ernment assigned the De-
partment of Immigration
and National Registration
to manage the implemen-
LuLIon oI LIe E-VIsu sys-
tem under the guidance
of the MIP.
The Ministry of Hotel
and Tourism led calls to
the government for the
electronic visa applica-
LIon sysLem Lo be ImpIe-
menLed duLIng buck Lo
zo11.
Myanmar Summary
_., .:. ~~ .. ~. :. _
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-~:qq.__e.._.
May Soe San
A
reporL by LIe
UnILed NuLIons OI-
hce Ior Drugs und
CrImes (UNODC) Iound
opium cultivation in My-
anmar has increased
yeur-on-yeur sInce zoo6
despite production rates
curbIng uL LIe sLurL oI LIe
decade.
n 1qqq, Myunmur Im-
pIemenLed u 1-yeur pIun
to reduce the produc-
LIon oI IIIIcIL subsLunces
throughout the country.
The crackdown saw the
countrys opium trade
drop by uImosL 8 percenL
us oI zo1z.
However, LIe UNODC`s
report shows production
rates have resurged in
Myunmur sInce zoo; wILI
the countrys opium cul-
LIvuLIon heIds IncreusIng
Lo 1o,ooo ucres counLry-
wide.
Myunmur`s poppy heIds
grew by 1; percenL In zo11
und zo1z, spurred on by
increased output from
production areas, con-
centrated in the Shan and
Opium Production Bounces Back in Myanmar
Kachin States.
TIe UNODC`s SouLIeusL
AsIu und PucIhc RegIonuI
Representative Gary Lew-
is said drug trade in My-
unmur Is esLImuLed uL $qo
mIIIIon (Kqo bIIIIon).
TIuL umounL Iur more
exceeds LIe omcIuI GDP
of Myanmar and even
LIuL oI LIe neIgIbour-
Ing sub-Mekong nuLIons.
TIe cusI ow In LIe drug
trade is the largest in the
regIon, Gury ewIs suId.
Myanmar is located
in what is known as the
GoIden TrIungIe Re-
gIon, un ureu oI coun-
tries, including Thailand
and Laos, where heroin
producLIon Ius seen yeur-
on-yeur Increuses sInce
zoo6, LIe UNODC suId.
Myanmar ranks as
the worlds second larg-
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est opium producer and
conLrIbuLes z percenL Lo
the drugs international
bIuck-murkeL.
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Myanmar Summary
A policeman stands near seized narcotic drugs during a drug destruction ceremony in Yangon. Myanmar
authorities burned seized narcotic drugs at a market value of $129.28 million in Yangon, Mandalay and
Taunggyi last month.
U
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People are seen in a queue at the Visa on Arrival section in Yangon International Airport.
S
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Myanmar Business Today
mmbiztoday.com
11
July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
Myanmar Summary
Sustainable Palm Oil in Myanmar Could
Access Premium Markets
Multi-stakeholder workshop leads to commitment to explore feasibility of sustainable palm oil industry for Myanmar
May Soe San
A
doption of sustain-
ubIe puIm oII pro-
duction principles
could provide Myanmars
palm oil sector with direly
needed capital, invest-
ment and technology,
helping the industry gain-
ing access to premium
markets, stakeholders
told a workshop.
TIe worksIop, co-IosL-
ed by BrILIsI nuLure con-
servuLIon group uunu &
Ioru nLernuLIonuI My-
unmur und LIe UnIon oI
Myunmur ederuLIon oI
CIumbers oI Commerce
ndusLry (UMCC), dIs-
cussed LIe susLuInubIe de-
velopment of Myanmars
plantations with a focus
on LIe burgeonIng puIm
oil sector.
Myunmur`s DIrec-
Lor runk Momberg suId:
PIunLuLIon crops pIuy u
critical role in Myanmars
national development
strategy and are a poten-
LIuI source oI sIgnIhcunL
benehLs.
However, LIe socIuI
and environmental im-
pacts of the plantation
sector, particularly palm
oil, have drawn criticism
throughout Southeast
AsIu.
He said the introduction
and promotion of sustain-
ubIe prucLIces In pIunLu-
tion development can
help maximise economic,
social and environmental
benehLs und secure IuLure
access to international
murkeLs und hnunce,
which is increasingly
linked to sound social and
environmental practices.
The workshop, funded
by LIe Europeun Un-
ion, included key stake-
holders from plantation
companies, government
agencies, and civil soci-
ety organisations, which
worked together to intro-
duce prIncIpIes und besL
prucLIces oI susLuInubIe
palm oil production.
"Through this project,
LIe EU InLends Lo supporL
Myanmar in protecting its
mosL ImporLunL bIodIver-
sity sites.
TIe worksIop provIdes
the opportunity to further
discuss ways of making
busIness dIerenLIy In
Myanmar, and ensuring
economic activities are
developed in an environ-
menLuIIy susLuInubIe und
socIuIIy IncIusIve wuy,
RoIund KobIu, Europeun
UnIon Ambussudor Lo
Myanmar, said.
Myanmars southern
Tanintharyi Region is the
only area where soil and
climate conditions allow
for growing oil palm in
the country. To date, over
1qo,ooo IecLures oI oII
puIm Iuve been pIunLed
und qoo,ooo IecLures
uIIocuLed Lo qq nuLIonuI
companies.
Gary Paoli, an expert in
susLuInubIIILy Irom Due-
meter Consulting, with
experience in the Indone-
sian palm oil sector, said
Myanmar is in the early
stages of palm oil expan-
sIon und In LIe very Ior-
LunuLe posILIon Lo Ieurn
from other countries to
avoid their mistakes.
DurreI Webber, secre-
tary general of the Round-
LubIe on SusLuInubIe PuIm
OII (RSPO), In IIs keynoLe
speecI suId susLuInubIe
puIm oII Is IeguI, envI-
ronmentally appropriate,
socIuIIy uccepLubIe und
prohLubIe.
TIe RSPO Is u gIobuI
muILI-sLukeIoIder orgunI-
suLIon und cerLIhcuLIon
scIeme und Ius members
from around the world
who voluntarily commit
to transform the market
Lo muke susLuInubIe puIm
oII LIe norm. Members
ure Irom LIe gIobuI suppIy
chain of palm oil produc-
ers, processers, traders,
retailers, manufacturers,
bunks, InvesLors, und en-
vironmental and social
NGOs.
The governments mo-
tivation to promote the
secLor Ius been Lo meeL
domestic demand for
cooking oil and reduce re-
liance on expensive palm
oil imports.
However, us ugro-cII-
matic conditions in Tan-
intharyi are marginal, and
Myanmars companies
Iuve dImcuILIes uccess-
Ing cupILuI, know-Iow
and technology, as well as
having to rely on poor in-
frastructure, yields have
been Iur beIow LIose oI
Malaysian or Indonesian
growers.
The forests of Tanintha-
ryi are one of Myanmars
mosL ImporLunL bIodIver-
sILy ureus wILI z mIIIIon
hectares of intact lowland
rainforest, a unique forest
type limited to the very
south of Myanmar, and
Iome Lo gIobuIIy LIreuL-
ened animals such as ti-
gers, leopards, elephants,
tapir, and gurneys pit-
ta, which is a colourful
ground-dweIIIng bIrd
found nowhere else in the
world.
L Ius been proposed Lo
udd boLI TunInLIuryI Nu-
tional Parkand Lenya Na-
tional Parkto Myanmars
tentative list of World
Heritage Sites due to their
outstanding integrity and
gIobuI bIodIversILy vuIues.
und cIeurIng Ior puIm
oII und rubber pIunLuLIon
Ius been LIe drIvIng Iorce
of deforestation and loss
oI bIodIversILy In TunIn-
LIuryI, Momberg suId.
However, a land suit-
ubIIILy sLudy Ior puIm oII
presenLed by durIng
the workshop shows that
LIere Is no need Ior u
conIcL beLween pIunLu-
LIon deveIopmenL und bI-
odIversILy conservuLIon,
sInce mosL bIo-dIverse
forests are located inland
uIong LIe Myunmur-
TIuIIund border, un ureu
murgInuI uL besL Ior grow-
Ing puIm oII becuuse ruIn
fall is lower and the dry
season more pronounced
than in the coastal region,
he added.
NoL onIy ure LIe ugro-
cIImuLIc condILIons beLLer
In LIe cousLuI zone, buL
there is road access along
LIe KuwLIoung-MyeIk
road, with plenty of de-
graded lands throughout
the road corridor due to
past logging operations.
SInce poLenLIuI con-
IcLs oI InLeresL ure Iow,
LIe MInIsLry oI EnvIron-
mental Conservation and
oresLry und LIe TunIn-
tharyi regional govern-
ment can go ahead and
designate Tanintharyi
and Lenya proposed Na-
tional Parks, creating
u gIobuIIy ouLsLundIng
Lruns-boundury cIusLer
of World Heritage Sites
together with Kaeng-
Krachen National Park in
TIuIIund, Momberg suId.
Stakeholders concluded
LIuL wIn-wIn soIuLIons
for conservation and
plantation development
cun be Iound LIrougI uc-
tive engagement of all key
stakeholders, including
private sector, govern-
ment, and civil society or-
ganisations, to adopt the
RSPO prIncIpIes Lo IosLer
environmental friendly
land use planning, and
move Lowurds besL pruc-
tices in palm oil planta-
tion management and ex-
pansion.
TIey ugreed LIuL RSPO
cerLIhcuLIon couId pro-
vIde sIgnIhcunL economIc
benehLs und uccess Lo
premium markets espe-
cIuIIy Ior cerLIhed kerneI
oII. TIe udopLIon oI RSPO
prIncIpIes Ior susLuInubIe
puIm oII, us requIred by
mosL InLernuLIonuI bunks
and investors, could pro-
vide Myanmars palm oil
sector with access to ur-
genLIy needed hnuncIng
and technology.
They also agreed to es-
LubIIsI u susLuInubIe puIm
oII IeurnIng group LIuL
would facilitate stake-
holder dialogue, educa-
LIon und cupucILy buIIdIng
Ior susLuInubIeproduc-
tion, and pilot the devel-
opmenL oI u susLuInubIe
oII puIm pIunLuLIon bused
on RSPO prIncIpIes on u
voIunLury busIs.
_., .:. - . ~ , .. ~ . .
~ . . . . . , . .qq _ e _e .
~ .~~ .q.~ q_ qe ._
~..,.......~..~ .~
. ..:~e ~._ ..:.. ...| .
..:q~_..~ .~,..~. .
~ . . ._ ~., .~_ ~.
~_ ., e _ e .~ .~~ . ~~ ~
~.,~.q..|.._.
_ ., .:. ~ , ._ . :..
.~ . .~ . . . , .q .:.~. .
.. . ~ ~. .. . .~ , .. . .
..: .q:~ .q.. q: ~. .q
.e ~ ..:~e ~._ .~. . _e.
._ Fauna & Flora Inter-
national (FFI) ~~~~
.qq_~_~..: .~...q.
..,..q:~.,.~_~..
- e_e.~.~~.. .~.
..: _ ., .: ... .~. .,
.......~:. ....|.~..
.q.~._..~ ...~_.._.
.q:... . . ._~..:~ .
:.._ ~..,.......
~ .~...q.~.~.:. ~..q
~e ~._ ..:.. . . ~e ~._ .
.:.~.|~~ ~.~.~..
.~ .~ . .:.~ .qq _ ~_ ~
..: .~,..~..~...
~~ ~ ~._.. ..:~q:..:.
. ~.~: .. ..~ .~ . .
..:.~.:.~:. .~.~
....._.
. ~ . ..q.. . , .. :.e _e .
~ .~~ . ~~ ~ .qq _ ~_ ~
..._ ~.. ~~ . :.~
.~ . ~ .~ _. .. _. ~
..._..._ ...:..q. ...q.
. .:~.~ ~, .~ . q:
~~.~_.~.:.~ ~.~~..
_.. ~,:~~ e_~_.~ .
q..:. ~~:...~ ~ .:..
_._...: ...q.. .:~
.~ ~, .~ . q:~.. ~~
.:.. .~ . e .,..:. ._ ~.
.:~ . . ~ qq ... ._ _e.
._.
The map shows overlap between planned plantations in particular
in Lenya proposed National Park, which is critical for biodiversity
conservation, whereas areas suitable for oil palm is actually only the
coastaI zone with sufcient rainfaII.
F
F
I
A worker lifts harvested palm fruit onto a wheelbarrow at a palm oil plantation in Kisaran, North Su-
matra, Indonesia. Adoption of sustainable palm oil production principles could help Myanmars palm oil
sector gaining access to premium markets, stakeholders told a workshop.
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Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
India's Modi Eyes First Labour
Overhaul in Decades to Create Jobs
P
rime Minister Nar-
endra Modi has set
In moLIon LIe hrsL
major revamp in decades
oI ndIu`s urcIuIc Iubour
laws, part of a plan to re-
vIve LIe uggIng economy,
boosL munuIucLurIng und
creuLe mIIIIons oI jobs.
Successive governments
Iuve ugreed Iubour reIorm
Is crILIcuI Lo ubsorb zoo
million Indians reaching
working age over the next
Lwo decudes, buL Ieurs oI
un ugIy unIon-Ied buck-
lash and partisan politics
have prevented changes
Lo Iree up Iubour murkeLs.
Now, wILI LIe benehL oI
a single party majority in
the lower house of parlia-
menL Ior LIe hrsL LIme In
o yeurs, Iuws LIuL duLe
buck Lo jusL uILer LIe end
oI BrILIsI ruIe ure seL Ior
un overIuuI. OmcIuIs uL
LIe Iubour mInIsLry suy
this is a top priority in the
governmenL`s hrsL 1oo
Rajesh Kumar Singh
duys In omce.
India has a forest of
Iubour Iuws, IncIudIng
anachronisms such as
providing spittoons in the
work place, and are so
compIex LIuL mosL hrms
choose to stay small. In
zooq, 8q percenL oI ndIu`s
manufacturers employed
Iewer LIun o workers,
compured Lo z percenL In
China, according to a study
LIIs yeur by consuILuncy
hrm McKInsey & Co.
TIe WorId Bunk suId
In u zo1q reporL LIuL n-
dia has one of the most
rIgId Iubour murkeLs In
LIe worId und uILIougI
the regulations are meant
to enhance the welfare of
workers, they often have
LIe opposILe eecL by en-
courugIng hrms Lo sLuy
small and thus circum-
~ . e~, _~ ... ,:q, .|. .
._ ~._._- e, .,..:
...:..q.~ _.,.__.~_
~ , ~ . . . _. ~ ~: ~. .
~~ ., ...| ..:.. :e, ~ ....
q, ~ . e-.e: .. . ... ._._
.,..: ~....:.....:.
~:. .e . . . .:.~~ . ..
~_ ~ . ~_ ~ ..:._ . . . . :.
_....__e.._.
.:._.e......~~.
~. . . . . ._ ~q e .q:~
.:._ ...q .,. ~~ ~
~. . .... q, ~. . ..:..q.
.q: _._.._.:....:.._
~.,~.q..|._~:. ~..q
~.~.~ .~....:._.
. . .:... .:.-~ , _ ., .
~..' ..q.. ~.~..:
..q.~~ ~....:....
~ ~ .:.~ . ....._ ._.:..
..:.~ ..:......._.
venL Iubour Iuws.
BusIness Ieuders Iope
Modi, who advocates
smaller government and
prIvuLe enLerprIse, wIII be
u IIberuIIzer In LIe mouId
of Margaret Thatcher
or Ronald Reagan. Per-
haps the most important
change, they say, is to
rules making it hard to
dismiss workers.
IrsL up, LIougI, Lo
wIn pubIIc supporL, IIs
BIuruLIyu JunuLu PurLy
(BJP) governmenL Is
looking to make chang-
es LIuL benehL workers,
LIree senIor omcIuIs uL
LIe Iubour mInIsLry suId.
Among LIe cIunges: muk-
Ing more workers eIIgIbIe
for minimum wages, in-
creasing overtime hours
and allowing women to
do night shifts.
We ure LryIng Lo provIde
a hassle free environment
LIuL IeIps boLI workers
und IndusLry, u senIor Iu-
bour mInIsLry omcIuI In-
voIved In LIe deIIberuLIons
suId. L Is u prIorILy Ior us.
Next on the reform
ugendu wIII be LIe mosL
sensitive issue of loos-
enIng sLrIcL IIre und hre
ruIes. OmcIuIs suId LIey
Iuve begun preIImInury
talks with concerned
groups ubouL sIowIy Im-
plementing the changes.
TIere Is u dehnILe pusI
... you will see more meas-
ures, suId unoLIer om-
cial at the ministry who
is privy to the discussions
within the government.
Reuters
A female laborer carries bricks at a brick factory on the outskirts of the southern Indian city of Chennai.
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
Worlds Longest Bull Market Masks Malaysia Risks
M
uIuysIu`s bencI-
murk sLock In-
dex, one of the
hrsL Lo begIn reboundIng
Irom LIe gIobuI hnuncIuI
crisis, is headed for its
smuIIesL hrsL-IuII reLurn
sInce zoo8. TIe TSE
Bursu MuIuysIu KC n-
dex Ius guIned jusL o.;
percent this year, after
rIsIng 1z; percenL Irom
ILs OcLober zoo8 Iow
In LIe IongesL buII mur-
ket among nations in the
MSC AII-CounLry WorId
Index.
Record IouseIoId debL,
equity valuations that
exceed the average level
oI LIe pusL hve murkeL
peuks und sIower eurn-
ings growth at companies
Irom PeLronus Dugun-
gun BId. Lo MuxIs BId.
ure LukIng LIe sIeen o
SouLIeusL AsIu`s second-
bIggesL sLock murkeL.
WIIIe sIure purcIuses by
LIe nuLIon`s 8; bIIIIon-
rInggIL ($18z bIIIIon)
pension fund support
prices, money managers
uL Sumsung AsseL Mun-
ugemenL Co. und BIuck-
Rock Inc. favor stocks
in Thailand andChina.
VuIuuLIons ure Loo rIcI
In MuIuysIu, AIun RIcI-
ardson, whose Samsung
Aseun EquILy und ouL-
perIormed q6 percenL oI
peers Lrucked by BIoomb-
erg durIng LIe pusL hve
yeurs, suId by pIone Irom
Hong Kong. GrowLI
prospects are constrained
by IIgI IouseIoId debL
IeveIs.
Rajesh Kumar Singh
MuIuysIu`s buII murkeL,
dehned us u guIn oI uL
IeusL zo percenL wILIouL
u subsequenL drop oI LIe
same magnitude from a
recent high, has lasted
z,o6; cuIendur duys, uI-
mosL hve LImes us Iong us
the average advance since
BIoomberg begun compII-
Ing LIe duLu In 1q;;. TIuL
compures wILI 1,q6 duys
for the Standard & Poors
oo ndex, wIIcI Ius
cIImbed ubouL 1qo per-
cenL Irom ILs MurcI zooq
nadir.
Bull Market
The KLCIs advance
Irom ILs zoo8 Iow Is ;
percenLuge poInLs bIgger
LIun LIe uveruge 1q pre-
vIous buII murkeLs. TIe
guuge`s prIce-Lo-book ru-
LIo oI z. compures wILI u
meun IeveI oI z uL LIe IusL
hve ruIIy peuks und u muI-
tiple of 1.5 for the MSCI
EmergIng MurkeLs ndex.
I you Iuven`L Luken u
position in Malaysia, you
ure u IILLIe bIL IuLe Ior LIe
purLy, Sum e Cornu,
wIo IeIps oversee ubouL
$1 bIIIIon uL MucquurIe
Investment Management
and has an underweight
position in the country,
suId by pIone Irom Hong
Kong on June zq. We ure
noL hndIng u IoL oI vuIue.
TIe KC IeII o.1 per-
cenL uL q.zz u.m In KuuIu
Lumpur, poised for its
bIggesL Lwo-duy decIIne In
four weeks.
RIsIng debL IeveIs und
a planned consumption
tax may put pressure on
Malaysian consumers.
The countrys household
debL rose Lo u record 86.8
percent of gross domestic
product at the end of last
yeur, Irom ; percenL In
zooz, uccordIng Lo LIe
cenLruI bunk`s zo1 un-
nual report.
TIe nuLIon`s econom-
ic expansion has so far
been resIIIenL Lo IIgIer
debL IeveIs. GDP rose 6.z
percenL In LIe hrsL LIree
monLIs oI zo1q, LIe IusL-
esL puce In hve quurLers,
us u revIvuI In gIobuI
growLI boosLed exporLs.
TIe economy muy ex-
pund beLween q. percenL
und . percenL In zo1q,
LIe cenLruI bunk suId In
MurcI, versus q.; percenL
last year.
Ear ni ngs Outlook
Malaysias earnings
growth is still projected
Lo Iug beIInd emerg-
Ing-murkeL peers. ProI-
its in the KLCI index
wIII cIImb percenL In LIe
nexL 1z monLIs, versus
z1 percenL Ior LIe MSC
EmergIng MurkeLs ndex,
uccordIng Lo duLu com-
pIIed by BIoomberg. TIe
Malaysian gauge trades at
16 LImes esLImuLed eurn-
ings, versus 11 times for
LIe deveIopIng-nuLIon
measure.
My concern Is LIuL
we ure beIng usked Lo
buy sLocks now uL prIce-
earnings multiples and
prIce-Lo-book vuIues sIg-
nIhcunLIy IIgIer LIun LIe
IeveIs oI, suy, 18 monLIs
ugo, Ambrose suId. YeL
LIere Iusn`L been uny
increase in the earnings
ouLIook.
Malaysian stocks were
downgruded Lo under-
weight from neutral on
June 1q by JPMorgun
CIuse & Co., wIIcI re-
duced ILs zo1q und zo1
earnings growth forecast
and said its less positive
on consumpLIon-drIven
sectors.
HH HeuILIcure BId.
(HH), AsIu`s bIggesL
IospILuI operuLor, Is Lrud-
Ing uL qz LImes projecLed
1z-monLI eurnIngs, cIose
to its highest level in
seven monLIs, duLu com-
pIIed by BIoomberg sIow.
TIuIIund`s Bumrungrud
HospILuI PcI Ius u muI-
LIpIe oI o, wIIIe ndIu`s
ApoIIo HospILuIs EnLer-
prise Ltd. trades at 33.
Bloomberg
Myanmar Summary
Myanmar Summary
China's Weak Currency Disappoints Carry Trade Hunters
I
nvesLors wIo beL on
an appreciating yuan
this year, especially
carry trade enthusiasts,
Iuve meL wILI dIsmuI re-
turns.
TIe hrsL IuII oI zo1q Ius
been u IorgeLLubIe one Ior
the Chinese currency, so
Iur AsIu`s worsL perIormer.
BorrowIng In un equuI-
weIgILed buskeL oI LIe
Japanese yen, Swiss franc
und LIe U.S. doIIur und In-
vesting the proceeds in the
Chinese yuan, would have
Iunded InvesLors u negu-
LIve reLurn oI .q percenL
In LIe hrsL sIx monLIs oI
zo1q, u TIomson ReuLers
Saikat Chatterjee analysis shows.
Curry Lrudes -- borrow-
Ing In Iower-yIeIdIng cur-
rencies and investing in
IIgIer-yIeIdIng ones -- Is
u sLruLegy pursued by In-
vestors especially in times
of low market volatility.
TIe renmInbI`s under-
performance stands out
even more starkly if seen
through the lens of the
Sharpe ratio, which takes
into account percentage
returns of the currency
mInus rIsk-Iree ruLe re-
Lurns udjusLed Ior cur-
rency standard deviation
or swings.
UsIng LIuL meLrIc, LIe
Chinese currency has
noLcIed up u ruLIo oI mI-
nus z.z, LIe worsL sIx-
month performance since
LIe second IuII oI zo1o,
according to Thomson
ReuLers duLu. n compurI-
son, on u SIurpe-ruLIo bu-
sIs, LIe renmInbI posLed u
ruLe oI reLurn oI z.8 In LIe
corresponding period of
last year.
TIuL Is becuuse wIIIe
currency murkeL voIuLII-
ILy In generuI Ius been
subdued Ior mucI oI LIIs
yeur, LIe renmInbI`s moves
Iuve been unusuuIIy voIu-
tile thanks to the Peoples
Bunk oI CIInu`s sLunce Lo-
wards the currency.
TIe underperIormunce
oI LIe yuun In LIe hrsL
IuII Ius been Ied by LIe
cenLruI bunk`s poIIcIes Lo
sLump ouL IoL money In-
ows InLo LIe murkeL,
suId DomInIc BunnIng, u
senior currency strategist
uL HSBC In Hong Kong.
Now LIuL poIIcy Ius
largely succeeded, we
expect a return to a path
of modest appreciation
In LIe second IuII, suId
BunnIng, wIo expecLs LIe
yuun Lo sLrengLIen Lo 6.1q
by LIe end oI zo1q.
~. : . .. :..q.. ~ ~. ..'
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_ ., ._ _ . ~~ .:. ._
....q:.-..,...~:~,.
~,.._ ~~ ....,:~..
. . ~~ ~_.~ _., ._ qq . ~, .
..~._.~.,. .~_.~
q ._~: .. q._ .FTSE Bursa
Malaysia KLCI ~,.~,.
._ ~~ ....~:~~:
~ q . ._ ~. ..,._ ..:~
. ~ q:..,.~ _.~~
~: MSCI .~~:~,.
~ , .~ ~q _ _~:. .~e , _.
e _e .._ ~ , ....~ ~ (Bull
Market) .:.~ ~.|~~
_e....:._. e...~~.
. _...q:. . , ..:_. ~~
.:.._~:. .q._.
. . , ~ .~q ..:~ . .:
. ~._~...:~ q e e:~, e .
.:.. ~ . ~ .:.-~ . ~ .
~~ . ~.._..._~: ~.q
.~:~:q-.~e~_~....
.~: .. .~ ~ _ ~ .. :~ . .
.:_.._e.._..- q..
.e ..'.: ~
.e,..:~q . . q, . . _e
q ee:. :.~e e _ . .._ ~:
.. .. , .. :.~ .:~ . ...
..:._. Samsung ..
. . . ., . .q.~ . ~ ., .,:
.:.~ .. ~, ~ q ..~: q e
e:.:.~._..:~._~: .
._.:_~:.._ .
Bloomberg -..:_~_.
~q,.-~.~.__...._
|...~~. _.~' q:.
. , .~ . _.~: .. , . : . . .
..:. .._~:. .q._.
....q :.- Bull Market ._
~ q:..,. ~.~~.qq_
~ .~~ . ..:~ .~:~ ..:
~_. ..q q~ ..| . ,~'
_~:. .~: Bloomberg -
. ..: .~.~ ~.~ .:.~q
. . . . _ . ~~ . . , .-|..
.q ._~: . .q._.
e...~~. ~,~e..
.. . ~~ .: ._ e ~ ~ _
..: .._ ~.. _ . . ~ .
..: q .. ._. . . . . :.._
. ~ .~ e e q.. .:. _~ .:q
._~:. .q._.
~~, ... . ~~ ~~ .~
~,~.._~.._ ~:q~
~....~._.~.,_~.~.,
q_. . . ~ ~. .~ q._ . . ~. . .
_e..,.._.
.,e,. ..~:., eq,.
~..q ~, ..'.:.:.~ ...e
_. . ~, ~ e . . ~ ~_.~ ~. , .
qq, q .. ._. . . . .:.. : ~~,
. . . ..._ .:~ .~~ .
, ... , q:..,.~ ~,.
..'.._.
~, e .~~~ ,_...:. ._~.
.:.~ ...e _ . . ~, e .~~~
_.,..:.._~..:.~ q...
_. . . . ._ Carry trades q .. .
_.......: q..._.....:.
.....:,_...._e._.. ...
~ ~ ~~~ ~~,_ .. , ~
.__..._~._.
. ._~.~, e.~ ~ .~:~ ~
.~..: Sharpe ~...,._e
_~_ . e . . -~, e .~. .
..: ._q:..:_.. ...
q:. . , . ~. ~ _.. ~: ~~~
.~e..~~.,:~.. ~..
..._.:~.~~. ~._.~.,
_e. ._~:. Thomas Reutesr
- ~.~~.~.:.~q .q
._.
_._e..:.q_...: .._~.
...~~.:..: .ee~:.
_e e...~...:~ ~~~
~~_..,.,~ ~,~~..
.:. ~ -. ._ ~. ~..'
~~e.._~: e..~,e.
.~_._._e..:_.._e.._.
People ride on escalators in a shopping mall in Kuala Lumpur, Malaysia.
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
Rupee Heads for Biggest Monthly Decline
Since August on Oil Risk
I
ndIu`s rupee Is Ieud-
ed Ior LIe bIggesL
monthly drop since
AugusL on concern IIgIer
gIobuI oII prIces wIII spur
InuLIon und wIden LIe
Lrude dehcIL.
TIe currency IosL o.
percent this quarter amid
concern that a potential
drop in farm output amid
inadequate rainfall will
Kartik Goyal stoke price pressures. The
monsoon, which accounts
Ior more LIun ;o percenL
of Indias annual rains,
wus qz percenL Iower LIun
LIe o-yeur uveruge LIIs
month, according to the
weuLIer depurLmenL. BrenL
crude rallied 3.3 percent in
June umId specuIuLIon vIo-
lence in Iraq will disrupt
supplies.
TIe drop In LIe rupee
is mainly due to concern
ubouL oII prIces, suId
Naveen Raghuvanshi, a
MumbuI-bused currency
Lruder uL DCB Bunk Ld.
We suw u IoL oI doIIur
buyIng und LIuL pressur-
Ized LIe currency.
TIe rupee sIumped 1.6
percent this month to
6o.oqz per doIIur us oI
q:q1 u.m. In MumbuI, uc-
cordIng Lo duLu Irom Io-
cuI bunks compIIed by
BIoomberg. L guIned o.1
percent today.
ndIu`s Lrude dehcIL wus
$11.z bIIIIon In Muy, LIe
wIdesL In 1o monLIs, uc-
cordIng Lo LIe IuLesL om -
cIuI duLu. TIe nuLIon Im-
porLs ubouL 8o percenL oI
the oil it uses.
WIoIesuIe-prIce Inu-
LIon quIckened Lo 6.o1
percenL In Muy, LIe IusL-
est this year. Reserve
Bunk oI ndIu Governor
Raghuram Rajan last
week highlighted a need
for preparing to counter
geopolitical risks to the
economy.
Emer gi ng Ri sks
EmergIng geopoIILIcuI
rIsks muy unruveI IId-
den vuInerubIIILIes und
emerging market and
developing economies
IIke ndIu need Lo boIsLer
their defences against the
ImpucL oI uncerLuInLIes,
Rajan said in areport on
June z6.
One-monLI ImpIIed
volatility in the rupee, a
gauge of expected swings
used to price options,
IeII z; busIs poInLs LIIs
monLI und 18 busIs
poInLs, or 1.8 percenLuge
poInL, LIIs quurLer Lo ;.11
percent, data compiled
by BIoomberg sIow. TIe
meusure cIImbed LIree
busIs poInLs Loduy.
TIree-monLI osIore
non-deIIverubIe Iorwurds
dropped o.z percenL Lo-
duy und 1.q percenL In
June Lo 6o.qz per doIIur,
LIe duLu sIow. orwurds
ure ugreemenLs Lo buy or
sell assets at a set price
und duLe. Non-deIIveru-
bIe conLrucLs ure seLLIed
In LIe U.S. currency.
Bloomberg
.~~: .q,....,._..:.
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. .q : . , . . . . .:~ _
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._... q:..,. ~..
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A customer hands a bundIe of Indian Rupee currency notes to a teIIer at a nanciaI institution in Mumbai.
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
16
C
IInu`s Lop bunks uc-
counted for almost
one-LIIrd oI u re-
cord $qzo bIIIIon oI proI-
ILs mude by LIe worId`s
Lop 1ooo bunks IusL yeur,
showing their rise in
power sInce LIe hnuncIuI
crisis, a survey showed on
Monday.
CIInu`s bunks mude
$zqz bIIIIon In uggreguLe
preLux prohL IusL yeur, or
z percenL oI LIe Indus-
Lry`s gIobuI eurnIngs, uc-
cordIng Lo TIe Bunker
magazines annual rank-
Ings oI LIe prohLs und cup-
ital strength of the worlds
bIggesL 1,ooo bunks.
usL yeur`s gIobuI prohLs
were up z percenL Irom
the previous year to their
IIgIesL ever IeveI, Ied by
prohLs oI $ bIIIIon uL
Industrial and Commer-
cIuI Bunk oI CIInu (CBC)
(6o1q8.SS). CIInu Con-
sLrucLIon Bunk (6o1qq.
SS), AgrIcuILure Bunk oI
CIInu (6o1z88.SS) und
Steve Slater
Bunk oI CIInu (6o1q88.
SS) hIIed LIe Lop Iour po-
sitions.
Bunks In LIe UnILed
States made aggregate
prohLs oI $18 bIIIIon, or
zo percenL oI LIe gIobuI
LuIIy, Ied by WeIIs urgo`s
(WC.N) eurnIngs oI $z
bIIIIon.
Bunks In LIe eurozone
conLrIbuLed jusL percenL
Lo LIe gIobuI prohL pooI,
down Irom z percenL
beIore LIe zoo8 hnuncIuI
crisis, the study showed.
LuIIun bunks IosL $ bII-
lion in aggregate last year,
LIe worsL perIormunce by
any country.
Bunks In Jupun mude
$6q bIIIIon oI prohL IusL
yeur, or ; percenL oI LIe
gIobuI LoLuI, IoIIowed by
Myanmar Summary
Globul Bunk Prots hit $qob us Chinese Lenders Boom
bunks In Cunudu, runce
und AusLruIIu ($q bIIIIon
In eucI counLry), BruzII
($z6 bIIIIon) und BrILuIn
($zz bIIIIon), TIe Bunker
said.
TIe muguzIne suId CBC
kept its position as the
worId`s sLrongesL bunk,
bused on Iow mucI cupI-
LuI LIey IoId - wIIcI re-
ecLs LIeIr ubIIILy Lo Iend
on a large scale and en-
dure shocks.
TIe Bunker suId AIrI-
cun bunks mude LIe IIgI-
est returns on capital last
yeur oI zq percenL - dou-
bIe LIe uveruge In LIe resL
of the world and six times
LIe uveruge reLurn oI q
percenL uL Europeun Iend-
ers. Reuters
Daimler and Nissan to Invest $1.36b to Build
Premium Small Cars
D
uImIer AG und NI-
ssan Motor Co are
jointly investing
$1.6 bIIIIon Lo deveIop
premium small cars and
buIId u IucLory In MexIco,
in a step that deepens co-
operuLIon beLween LIe
Mercedes-Benz und n-
hnILI brunds.
The companies said they
wIII buIId u pIunL wILI un
annual production capac-
ILy oI oo,ooo veIIcIes In
AguuscuIIenLes In cenLruI
Mexico, where Nissan
uIreudy Ius u $z bIIIIon
manufacturing complex.
TIe hrsL nhnILI curs
will roll out of the new
pIunL In zo1;, IoIIowed u
yeur IuLer by Mercedes,
the companies said, with
boLI brunds pIunnIng Lo
market those vehicles
gIobuIIy.
The companies did not
specify which vehicles
wouId be buIIL In MexIco.
BuL sources LoId ReuLers
nhnILI wIII buIId LIree
models at the plant in-
cluding a sedan, a coupe
and a compact crossover
Edward Taylor AND
Laurence Frost
likely to replace the slight-
Iy Iurger QXo modeI.
Mercedes-Benz pIuns Lo
produce at least three cor-
responding vehicles, in-
cluding a crossover from
new joint vehicle archi-
tecture, developed from
DuImIer`s MA IronL-
wIeeI-drIve pIuLIorm.
TIe o:o joInL venLure
in Mexico allows Nis-
san, which is allied with
rencI uuLomuker Re-
nault, to share compo-
nents and technology that
ure uIreudy used by Mer-
cedes-Benz. n reLurn,
DuImIer geLs u hrsL NorLI
AmerIcun producLIon sILe
for small vehicles, to sup-
pIemenL ILs U.S. ussembIy
pIunL In Vunce, AIubumu.
The German carmaker
has struggled in the past
wILI InsumcIenL demund
for its smaller cars, while
NIssun`s nhnILI brund
Ius yeL Lo esLubIIsI ILseII
us u sIgnIhcunL pIuyer In
LIe gIobuI premIum sec-
tor.
BuIIdIng curs In MexI-
co allows Mercedes and
Hong Kong-bused nhnILI
Lo seII curs In LIe UnILed
States while avoiding
some of the currency and
LurI cosLs LIuL crImp
prohLs on veIIcIes Im-
ported from overseas.
MexIco uIso oers Iower
Iubor ruLes LIun Germu-
ny, Jupun und LIe UnILed
States.
Carlos Ghosn, chief
execuLIve oI RenuuIL-
NIssun, suId LIuL joInL
development of com-
pact premium vehicles
and joint production in
AguuscuIIenLes LogeLIer
represent one of the larg-
esL projecLs beLween LIe
RenuuIL-NIssun uIIIunce
and Daimler.
DuImIer CIIeI ExecuLIve
DIeLer ZeLscIe wus usked
whether he would con-
sIder u IuII-bIown merger
beLween LIe compunIes
und suId, TIe cooperu-
LIon Is so successIuI be-
cause it is not the result of
u merger.
The companies will add
uImosL ,;oo jobs by LIe
time the plant reaches
full capacity, expected in
zoz1, us weII us 1o,ooo
jobs uL purLs suppIIers
and related enterprises.
Reuters
Myanmar Summary
C-class by Daimler AG is pictured before company's annual news conference in Stuttgart.
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A Bank of China branch is seen under construction in Guangzhou.
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._.
~, ~ ~ .:.._ _. .. ._
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....|. ~...'.:
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.... ...:.~q._.
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~_.~. . : ..'.: ~, . e
..e~ ~.:...q:~.
- ~ q:..,.qq._.. Wells
Fargos ~ ~_.~. ..'.:
, .e_e ...:.~q
._.
e,~,..,_ ~.:....|.
~_ .~ . - , q:. . , .~
q:.e...._.. ~~.~.:.
. : . . ..| ...'.: , . e
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~.........:._e.._.
., . . ~ .:.. : ..'.:
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....|...:~- q:..,.
q ._~: . . q._ . ~:eq ~
~ .:.. ~_. . ..~_ . .
~_.~~..q._.. , q:..,.
qq.._~:. .q._.
Daimler AG ~.~.
,..,.~.~~._ .:....
,.. Infniti ~.~~..
~~_~:. ....|...:q~.
._ .. . .~. q. ~_ e. ~q_
~..._.~:..:. ~..q,
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.:q, ..'.: ~ ... ,'
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..:..'.:. . . e ~,
~...q.~,~ ~....
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.._ .~,~.,~_..:~
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.._. Infniti ~:..:.~
~~ ~ .~~..._
_e._.. .:....~:..:.~ .,:~
~... ~ ~ . . ._ _e. ._ .
Infniti ._ ~:...:.e
. .. .~ ~ . . ._ _e. _. .
..~:. coupe ~:..:.
.|~.__e.._..:.... ,
._ ~:.~. .~.:.. .. . ~
...__e.._~:. .q._.
~. ~~ . ~. .. . ...| ...:
q ~ . ._~: ,. ., .~.,_e
.:. .. ., .:.~ . .. :.
..: ,_ .._:.:.~ qq . ._
_ e. ~: ~_ ., ~. , ~_ e.
Diamler ._ ._.:~~..q~
~ ~:.e.:. ~.._
, .~ -~..q ~, ~. . .., .
. ...:q, .~,~..,q:
qq.__e.._.
July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
Myanmar Summary
Following Long Ban, US Could Dominate
Global Light Oil Supply
A
fter decades of iso-
IuLIon, LIe UnILed
SLuLes Is seL Lo be-
come a major player in
LIe gIobuI Lrude oI uILru
light oil as recent govern-
ment export approvals
attract interest across the
world.
oIIowIng ruIIngs dIs-
cIosed LIIs week, U.S.
companies can now ex-
port the light, gaseous
petroleum known as con-
densuLe uILer u IorLy-yeur
bun, gIvIng LIem uccess
to needy markets in Latin
AmerIcu und AsIu und po-
tentially threatening the
dominance of other es-
LubIIsIed producers In LIe
MIddIe EusL und AIrIcu.
L couId Iuve un enor-
mous ImpucL, suId AI
Troner a condensate ex-
perL und presIdenL oI AsIu
PucIhc Energy ConsuILIng.
L couId Iuppen wILIIn
LIe nexL Lwo weeks.
Up Lo one mIIIIon burreIs
of condensate is produced
eucI duy In LIe UnILed
States, all of which can
be exporLed uILer some
busIc rehnIng Lo reduce
volatility, known as sta-
bIIIzIng, uccordIng Lo LIe
U.S. ruIIng. TIuL Is doubIe
LIe umounL exporLed by
QuLur, LIe worId`s IeudIng
condensate producer.
The amount exported
and where it goes de-
pends on the kind of con-
densate that is produced
Edward Mcallister
and whether it is the right
grade to feed petrochemi-
cal plants in China or
Japan or to dilute heavy
crude produced in Latin
AmerIcu.
ExporLs oI condensuLe,
a major feedstock for the
petrochemical industry,
wIII provIde LIe hrsL ouLIeL
for the vast amounts of oil
and gas now produced in
LIe UnILed SLuLes. L wIII
also give an inkling of the
ImpucL LIuL u U.S. drIIIIng
boom couId hnuIIy Iuve
ubroud II oLIer Lypes oI
crude are approved for
export.
Buyers ure uIreudy InLer-
esLed, noL jusL In neurby
uLIn AmerIcu - LIe cIos-
esL desLInuLIon Ior U.S.
condensuLe - buL IurLIer
uheId In ndIu und eusL
AsIu, Lruders und sources
said.
n uLIn AmerIcu, com-
panies could use conden-
suLe us u subsLILuLe Ior
naphtha to lighten local
heavy crude. Venezuelas
sLuLe-run oII producer
PDVSA und hrms operuL-
Ing In CoIombIu IncIudIng
EcopeLroI und PucIhc Ru-
bIuIes, some oI wIIcI uI-
reudy buy Irom WesL AI-
rIcu, ure IIned up wuILIng
Lo buy IIgIL crudes und
condensates if the price
Is rIgIL suId one Lruder
working in crude pur-
chases, speaking on the
condition of anonymity.
It is unclear what the
Singapore Says More Overseas Criminals Seek Bank Accounts
cosL oI U.S. condensuLes
wouId be, gIven LIuL LIe
price depends on the den-
sity and where it is pro-
duced. Some condensate
Irom LIe EugIe ord pIuy
In Texus does uppeur Lo be
cheaper than some grades
currently exported from
AusLruIIu`s NorLI WesL
Shelf, according to trad-
ers and Reuters data.
LENCTH TO
T1CHTNESS
TIe MIddIe EusL domI-
nates supply of conden-
suLe. QuLur und run ex-
porL ;6o,ooo burreIs per
duy combIned, ubouL IuII
duIIy gIobuI suppIy, uc-
cording to a presentation
In November by unuIysLs
uL ucLs GIobuI Energy.
AusLruIIu und AIrIcu muke
up most of the rest.
The majority of supply
Ieuds Lo AsIu, wIere Im-
porters like China, Japan
and South Korea have
buIId processIng pIunLs
known as splitters that
can turn condensate into
nupILIu und oLIer oII-
reIuLed producLs. n AsIu
PucIhc, spIILLers cun pro-
cess up Lo qoo,ooo bur-
rels per day of conden-
suLe, uccordIng Lo ucLs.
BuL us demund rIses,
production from existing
exporters is faltering. In
AusLruIIu, wIere conden-
suLe Is u by-producL oI IIq-
uehed nuLuruI gus produc-
tion, exports are already
decIInIng In purL becuuse
new gus produced Is drI-
er LIun beIore. n QuLur,
domestic demand is set to
slow exports. Iranian out-
puL Ius been Iumpered
by suncLIons.
L remuIns Lo be seen II
LIe UnILed SLuLes cun hII
the gap, and it is expected
to take time to determine
wIeLIer U.S. condensuLe
Is compuLIbIe wILI AsIun
importers needs. Some
said that no moves have
been mude Lo exporL con-
densuLe Lo AsIu Irom LIe
UnILed SLuLes. SumpIIng
could take months, others
said.
BuL wILI demund on LIe
rIse, LIe UnILed SLuLes
couId oer unexpecLed
respite.
S
ingapore prosecuted
u record number oI
money laundering
cases and seized more
LIun S$11 mIIIIon ($qz
mIIIIon) oI suspecLed
crImInuI proceeds In zo1
us more overseus oend-
ers seek ouL bunk uc-
counts in the city.
SIngupore`s openness us
an international transport
Iub und hnuncIuI cenLer
exposes IL Lo cross-border
money-IuunderIng und Ler-
rorIsL hnuncIng rIsks, Tun
Boon GIn, dIrecLor oI LIe
CommercIuI AuIrs De-
partment, said in the agen-
cys annual report posted
on ILs websILe. We ure
Andrea Tan seeing a trend of overseas
criminals seeking to laun-
der money through Singa-
pore bunk uccounLs.
TIe cILy`s wIILe-coIIur
poIIce Ius LrIpIed ILs h-
nancial investigation re-
sources with an increase
in suspicious transaction
reports and aid requests
from overseas enforce-
menL ugencIes. OrgunIzed
crime groups are getting
more sophisticated and
taking advantage of op-
portunities as Singapores
hnuncIuI IndusLry ex-
pands, the agency said.
The agency received
zz,q1; suspIcIous Lruns-
ucLIons reporLs In zo1, u
z percenL Increuse Irom
a year earlier, according
to the report. It provided
hnuncIuI InLeIIIgence Lo
IoreIgn ugencIes In q1
InsLunces, up Irom 16o
In zo1z. TIe hnuncIuI po-
IIce receIved 16q overseus
requests for assistance.
More LIun S$6 mIIIIon
of suspected criminal pro-
ceeds were seized in the
preceding year, according
Lo LIe ugency`s zo1z un-
nual report.
SIngupore Is boosLIng
ILs unLI-money Iuunder-
Ing ruIes In IIne wILI gIob-
al regulations following
U.S. uuLIorILIes` probe oI
severuI SwIss bunks Ior
LIeIr deuIIngs on beIuII
oI AmerIcun cIIenLs. TIe
AsIun cILy pIuns Lo reguIuLe
vIrLuuI-currency InLerme-
diaries including operators
oI BILcoIn excIunges und
vending machines to ad-
dress money laundering
rIsks und muy boosL ruIes
for remittance agents and
money changers.
TIe CommercIuI AuIrs
Department has also set
up a unit to investigate
fraud where the victim is a
pubIIc compuny us recenL
events in the stock market
suggest an increase in the
scale and complexity of
murkeL ubuse.
The enforcement scope
of the agency will also in-
crease with Singapores
plan to criminalize the
rIggIng oI hnuncIuI bencI-
marks, the police said.
Bloomberg
An oiI renery is seen in Iouisiana in a Ie photo.
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~..q._ .._~..~|...:.
~ . . , ~ ..:~~ ~q:.. .
. _.. q:~~~ . . q..: ~ . e
..eq._ .~:...'.:
~~ .,. ..'.: .,.,
.~:~ . ..._ .. ._~: . . q
._.
. ~~:.e e . ..: .q.
. . ._~.. q:-e .~ .~_e.
....~...q ..:._~:
._e~.~:.._~..~|...
~_~..e~..:..:.~:. .
._~._e_._._.. ~.q:e
.:. q . .,q._~: . ~ .., .
.q:.~e.q.q:_:, ,_~:.
.q... ~,~ .._.
e._:,._ ~~, ...
~~ .~ . .e_e. e e . ._~.
. ._ .: . . .~ . ... . .
,,~ . .~.qq_.. ..
.~.~...~ q:.
. , ._ . ~~ .:._ ~: . . q
._.,.~._ ._.:._:,
.:.. ~_~...|. ,,~ _~.
.._~..q:.~..:.....
.._.
~ .., ..q: .~e .q.q:_:,
._ ~.:.. ~ . ~ . :.~
..._..:.~:. .........
.q.~e ~ e ._ .:._. . .~ ~
..: ..~:...~~_e.q..:.
~q...~ ~ ~..' ~. ~_.~
~ . .:...:~. , . . ..
. . ~ . _ . .:..:._~: _ e.
._.
~..q ~, _._ .: . ._
.e....:..: ..~
.,._...,:~ .q,_~. .~_~_
.q:.~eq: ~.:...~~~
~.~..q:.._e..:q, q_
qe..:q~.:_.. ~..q-
.~,._.._e..:..:.._~:
~.:~.~,.. .~~.:....:
q._~:. .q._.
e. . ~..~ ~~ . ~ _.,
. ~ ..:. ._e~ .~ .:.._~:
~..q ~, _ ._ .: . ._
. . ....e _ ~:. ~ . .:.
..: condensate ..' _~_ .
..:.:~ . .. :.q, . . .~. . .
~ .~~~..q~. ~:q
...~ ~ .:.. ~ . . .~:
._ _e. _ ...~ ~ .:.~ . . .
..:...: ~.q ~.e..
. ~:q.~_.:.~....:.
~:. _. . .._.:~ .:._ _e. ._ .
Condensate ._ ..| .
~..,.., ~ ~..q~,_._
.:.~ .,.~...
_.. ,.~~:. ..|~~.e.
~...~: ~._...,..
~,_.e_...,_e _._..
~...__e.._. ..:~
.: ~.: condensate~.:...
~ . . . ~:~:. . ~ .
.,. - . . .q ._~:. . q._ .
.q, .:~ .~ . ~_~~ ~
~. ~~ , _ ~. . _ e. ..:
condensate .:. ~..:..
._~: ~..q~,_._.:.
~ .~q~...~q..:
.:._.:.._ .q,. .:~.
.:.~~ ~ ... ... .._~: .
. _e. .:. ._ .
July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
Myanmar Summary
From page ...(LITI)
From page ...(LITI)
Review Panel to Manage Foreign
Banking Licences
C
onsuILIng hrm Ro-
Iund Berger wIII
monitor the review
puneI overseeIng LIe II-
cence application process
Ior IoreIgn bunks seekIng
Lo operuLe hnuncIuI servIc-
es in Myanmar.
RoIund Berger Is u Mu-
nIcI-bused gIobuI sLruL-
egy consultant, which gives
perIormunce udvIce Lo pub-
lic institutions and leading
corporations around the
world.
Up Lo qo InLernuLIonuI
bunks ure suId Lo be bId-
dIng Ior -1o IIgIIy coveL-
ed IoreIgn bunkIng IIcenc-
es, wILI muny hnuncIuI
hrms IopIng Lo begIn oI-
fering services in Myanmar
by SepLember.
However, Myanmars
CenLruI Bunk DepuLy Gov-
ernor SeL Aung suId LIe
governmenL won`L uuLIor-
Ise more LIun 1o bunks Lo
run services in the country,
he was reported as saying
on News.com.au.
TIe nLernuLIonuI Mone-
Lury und und WorId Bunk
Iuve been workIng wILI
Myanmars government
Lo Increuse LIe purLIcIpu-
LIon oI IoreIgn bunks In LIe
country since last year.
CurrenLIy IoreIgn bunks
ure onIy uIIowed Lo oper-
uLe represenLuLIve om ces In
the country.
Myanmars strong
growLI prospecLs meun In-
LernuLIonuI bunks remuIn
interested in the country
despILe ILs hnuncIuI resLrIc-
tions on their operations.
WIen PresIdenL U TIeIn
Sein came to power in
Tom Stayner
zo11, LIe new quusI-cI-
vIIIun governmenL InLro-
duced sweeping economic
and political reforms.
Myanmars nationwide
changes have encouraged
counLrIes IncIudIng LIe Eu-
ropeun UnIon, AusLruIIu,
LIe UnILed SLuLes und Cun-
udu Lo remove Lrude sunc-
tions against the Southeast
AsIun sLuLe.
TIe counLry`s IoreIgn dI-
rect investment has risen
dramatically in the past
yeur Lo over $8;1 mIIIIon
(K8;1 bIIIIon) In ebruury.
However, Myanmars
bunks und poIILIcIuns ure
wury LIe Increused cupI-
LuI resources und LecInoI-
ogy oI IoreIgn bunks couId
place the countrys own
hnuncIuI InsLILuLIons uL u
disadvantage.
TIe nLernuLIonuI Mon-
eLury und`s (M) MuLL
Davies said an increase
In IoreIgn bunks InLo My-
anmar could place added
pressure on the countrys
developing economy.
An expecLed enLry oI Ior-
eIgn bunks Lo LIe uIreudy
rupIdIy growIng hnuncIuI
secLor wIII pIuce IurLIer de-
mands on macroeconomic
poIIcy und sLreLcI (Myun-
mur`s) scurce supervIsIon
cupucILy, MuLL DuvIes
said.
usL monLI, LIe M re-
Ieused u reporL on Myun-
mars economic forecast
Ior LIIs hscuI yeur endIng
MurcI zo1.
TIe InLernuLIonuI orgunI-
zation forecasted Myanmar
should expect the countrys
economic growth to reach a
ruLe oI 8. percenL over LIe
zo1q-1 hscuI yeur.
DuvIes suId LIe nLernu-
LIonuI MoneLury und wIII
work cIoseIy wILI Myun-
mar authorities to ensure
uny Inux In IoreIgn bunks
doesnt strain the countrys
IocuI bunkIng secLor.
mpIemenLIng modern-
ised prudential regulations
us soon us possIbIe LIuL up-
pIy Lo uII bunks wIII Iuy LIe
IounduLIon Ior LIe deveI-
opmenL oI u sound hnun-
cIuI sysLem, Ie suId.
TIe WorId Bunk Ius
cuIIed Ior IoreIgn bunks Lo
meeL u mInImum oI $;
mIIIIon (K ; bIIIIon) In
cupILuI InvesLmenL beIore
enLerIng LIe counLry, uc-
cording to reports.
AuLIorILIes ure expecLed
Lo onIy uIIow IoreIgn bunks
entry into Myanmar if they
agree to work with the
counLry`s IocuI bunkIng
sector.
oreIgn compunIes wILI
bunk IIcences wIII be re-
quired to give monetary
supporL Lo domesLIc bunks,
in hopes of improving the
countrys underdeveloped
hnuncIuI sysLem, LIe Her-
berL SmILI reeIIIIs Myun-
mar Group said.
Myanmars remains one
of the poorest economies
In LIe worId wILI onIy 1o
percenL oI cILIzens und qo
percenL oI IocuI busInesses
ownIng u bunk uccounL.
nLernuLIonuI bunks en-
tering the country could
uIso be Iorced Lo munuge
LIeIr uccounLs In US doI-
Iurs due Lo u LrendIng de-
cIIne In LIe vuIue oI Myun-
mars local currency, Kyat.
The current exchange
ruLe oI KyuL und LIe US
dollar is approximately $1
Lo Kq;.
Davies said a gradual
administration of foreign
bunk IIcences LIrougIouL
the country will ensure
cupILuI Inow Increuse
don`L IeIgILen hscuI rIsks
pressuring the country.
n order Lo uIIow super-
vision capacity to develop,
and to minimise risk, the
issuance of new domestic
IIcenses sIouId be cureIuIIy
conLroIIed.
ET, LIe governmenL Ius
made a commitment to
the people of Myanmar:
that they will have the
rIgIL see Iow LIese re-
sources ure munuged.
SIe encouruged LIe gov-
ernment to make use of
LIe ET us u LooI Lo In-
spire wider reforms and to
enshrine transparency in
government institutions.
Myunmur wIII now Im-
pIemenL LIe ET SLund-
urd, meunIng LIe coun-
Lry wIII pubIIsI uccounLs
showing all payments the
government receives from
its extractives sector.
AIongsIde LIese hgures,
Myunmur wIII muke pub-
IIc InIormuLIon ubouL LIe
IIcence IoIders, produc-
LIon duLu, sLuLe-owned en-
LerprIses und LIe uIIocu-
tion of the revenues from
its natural resources.
As purL oI Myunmur`s
ET, LIe governmenL Ius
also committed to map
und IdenLIIy benehcIuI
ownersIIp oI LIe com-
punIes operuLIng In My-
anmar, disclose details
oI LIe zo1-1q oII und
gus bIddIng round, und
expIore LIe meLIodoI-
ogy and extent of contract
transparency.
Zuw Oo, LIe nuLIonuI
coordinator of Myanmar
ET, suId: We deepIy
appreciate the decision
oI LIe ET Bourd, wIIcI
recognIses our deLermI-
nuLIon Lo LrunsIorm My-
anmar to democratic and
peaceful country.
ET gIves us u useIuI
tool to design our escape
from the resource curse;
und IL Is un ImporLunL cuLu-
IysL Ior ongoIng reIorms.
He pledged to overcome
muny cIuIIenges Iuc-
ing the implementation
oI ET SLundurds und
muInsLreumIng LIe gov-
ernmenL`s work In broud-
er reform framework.
KunLIun SIunkur, coun-
try manager, Myanmar
om ce oI LIe WorId Bunk,
congratulated Myanmar
government, civil society
and industry operators on
ucIIevIng ET cundIducy
and said this milestone is
u LesLumenL Lo LIe new
level of national dialogue
on extractive industries in
Myanmar.
We ure pIeused Lo Iuve
been purL oI LIe process so
far, and we look forward
Lo conLInuIng LIe coIIubo-
ration with the Myanmar
ET MuILI-SLukeIoIder
Group und LIe deveIop-
ment partners who have
supporLed LIe process,
he said.
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A woman walks past the United Overseas Bank Ltd. logo displayed outside a branch in Singapore. UOB
is among more than 30 foreign banks in the race for Myanmar's banking licences.
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
Myanmar Summary
David Mayes
G
old is still in the
news a lot these
duys, und um uI-
mosL uIwuys ubouL IL by
clients at some point. The
precious metal has had
an impressive run from
LIe oo doIIur per ounce
resistance level that it
broke LIrougI In LIe eurIy
zooo`s. s LIere sLIII room
to run for gold or has it
had its day for now? This
Is u very InLeresLIng ques-
LIon LIuL Ius u Iew possI-
bIe scenurIos.
TIe hrsL scenurIo reIIes
on LIe buIk oI LIe bIgger
InvesLmenL munugers be-
IIevIng LIuL cenLruI bunks
around the world will
Whats in Store for Gold
continue to compete to
devuIue LIeIr own curren-
cies and pursue policies
that typically see golds
safe haven status help it
rIse. OI course LIIs Isn`L
a guaranteed outcome,
and one could argue that
LIe poLenLIuI puLI oI Iu-
Lure cenLruI bunk money
printing is already priced
InLo LIe rougIIy oo%
gain from the low to high
oI LIIs recenL buII murkeL.
The argument against
goId sLems Irom LIe pos-
sIbIIILy LIuL everyone wIo
wouId buy up goId us un
insurance policy against
InuLIon, und LIere Is no-
body IeIL Lo buy. You cun
see the downside risk of
beIng IuLe Lo LIe gume In
goId II you Iook uL LIe uL-
LucIed cIurL. TIe prevI-
ous buII murkeL In goId
ended with a very similar
looking pattern as this
mosL recenL peuk und re-
tracement.
While this is only one
possIbIe scenurIo, LIe
thing to note from the
chart is that gold went
InLo u rougIIy zo yeur
sIow downwurd spIruI uI-
ter that peak. That is the
rIsk oI buyIng InLo goId
at these levels, however if
you puIr goId wILI some-
LIIng LIuL does LrudILIon-
ally well in the kind of
environment where gold
goes into that kind of price
ucLIon LIen your porLIo-
IIo sIouId be IuIrIy weII
hedged. That is in fact the
muIn reuson wIy usu-
ally stick a small holding
of gold into a portfolio,
pureIy Ior LIe dIversIhcu-
LIon benehLs und Iedge
against massive money
printing programs.
The scenario where gold
Lurns buck uround und
Ieuds NorLI oI z,ooo Is
one where everything else
In LIe worId Is LurnIng buck
InLo u repIuy oI zoo8, und
in that event you would
mosL IIkeIy be very gIud
you held onto
some.
The question
LIen becomes
how much of
an investment
portfolio should
you allocate to
gold and other
precIous meL-
uIs. UnIorLu-
nately that very
much depends
on Iow opLI-
mIsLIc or pes-
simistic your
view of where
the world is
headed. My
advice would
be Lo keep IL In
D
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proportion and not put
too many of your eggs in
one buskeL LIuL cun Lrend
slowly downwards for
such a long period. The
stock markets may crash
repeuLedIy, buL LIey uI-
mosL uIwuys Iuve recov-
ery periods that are quite
short relative to gold.
David Mayes MBA pro-
vides wealth manage-
ment services to expatri-
ates throughout South
East Asia, focusing on
UK Pension Transfers.
He can be reached at
davi d. m@f aramond.
com. Faramond UK is
regulated by the FCA and
provides advice on pen-
sions and taxation.
July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Myanmar Summary
TM
2 col x 10cm
Myanmar Summary
Kelvin Chia Expands to Mandalay
Phyo Thu
S
Ingupore-bused Iuw
hrm KeIvIn CIIu
Yangon has ex-
panded its operations in
Myunmur by seLLIng up u
new omce In LIe counLry`s
second largest city Man-
duIuy, LIe hrm suId.
TIe hrm, wIIcI Is LIe
oldest and largest foreign
legal consultancy in My-
anmar, signed a lease for
a unit at Sedona Hotel in
Mandalay, it said.
n recenL yeurs, we
Iuve been prIvIIeged Lo
service an increasing
number oI IocuI und In-
ternational clients as the
country makes steady
progress towards a mar-
keL economy, suId CIeuI
Swee Gim, director of Kel-
vin Chia Yangon Ltd, who
munuges boLI LIe hrm`s
Yangon and Mandalay of-
hces.
TIe hrm suId IL Ius seen
ILs busIness expund sIg-
nIhcunLIy In Lundem wILI
the exponential growth in
investments in the coun-
try.
We were eurIy movers
Cheah Swee Gim and Goh York Lin, President Kepple Myanmar.
In Yungon und were ubIe
to fully grasp the full im-
plications of legal changes
in Myanmar. We assessed
that the time is ripe for
LIe hrm Lo expund Lo
MunduIuy, sIe udded.
CIeuI suId LIe hrm Is
ideally positioned to as-
sIsL busInesses LIuL ure
investing in the north, in
sectors such as such ag-
riculture, mining and en-
ergy.
We Iuve u soIId Leum
on the ground to provide
ready access to quality
commercial legal servic-
es, sIe suId.
The inauguration of
LwIce weekIy IgILs by
SIIkAIr Lo MunduIuy wIII
enIunce connecLIvILy be-
tween the city, Yangon
and Singapore and will
boosL busIness Lrumc,
Cheah added.
In active operations in
Myunmur sInce 1qq, KeI-
vin Chia Yangon Ltd has
been InvoIved In muny
sIgnIhcunL projecLs LIuL
have received the approv-
al of the Myanmar Invest-
ment Commission.
TIe hrm Is uIso noLubIe
for its representation of
IocuI Myunmur busIness-
es, such as the consor-
LIum oI Myunmur pubIIc
companies investing in
LIe TIIIuwu SpecIuI Eco-
nomIc Zone.
or IeguI muLLers wILI
cross border ImpucL, sup-
porL Is provIded by LIe
hrm`s regIonuI neLwork In
SIngupore, JukurLu, Bung-
kok, Hanoi, Ho Chi Minh
City and Phnom Penh.
Having the largest legal
team on the ground in
Yangon ensures that the
hrm Is ubIe Lo ImmedI-
uLeIy mobIIIse resources
Ior sIzeubIe LrunsucLIons
and conduct due diligence
investigations for acquisi-
LIon deuIs, LIe hrm suId.
_.,.:.~ ~ ....
.~ _ . . , ..:.. . ~ . _. .
.~ ~. .~_~:. .. ~_~ ..:.
.....~~....,._e.
._ Kelvin Chia ._
_., .:_._ ~~ . . .. ..._.
~ ,..~.. e...._e
. q._ . ~. .|~ . ~ ._
, .~ -, .. ~ .. ..._. . . .,:.
e ~e ~ e...._.
. , . ~ . . .~ ~ ~ ._._ q
~_e_._e_.e_e.~.~~..~
~ ...~ ~ . .. :..q.~ . :.e
~. ._.. ~e ._._ ~ ., _._ .
~. . ~. ~ . .~ ~~ ~ ._ .
~. ., ..:~ ~.,~:.q .
~e''e q,~,. ....._.
~ - Kelvin ChiaYangon Ltd
., ., ..|, ~ ~: Ms Cheah
Swee Gin ~ ._.:.._.
Kelvin Chia ~.,_e _., .:
. ._.:~ . .q . .. :..q.. . , .
.:.~ ....q.q:~.q..:.
. . ..... q, q_ q e _. ..e e:
. ~ . ..q.. . , . .~~ ..
. . .~ . . , ..:.~ . . ....q,
_e. ._e Ms Cheah Swee
Gin ~ ._.:. ._ .
_. ....._...~:.
..._~: .. . Silk Air ._
._. ~.., .._~...,..,
_ . .._ ~: _ . . . _ . ~_~:.
..,q.,._e ,.~ .~
.~ ._ .:_ ~:.. ._ . Kelvin
Chia Yangon Ltd ._ _.,.:
. q .. ._. . . . - .:~ .
.~ _e ,:._ _~ .. . , ..
..~,..:..:~ ....q.q:
~.q..:. ~_.:~.....,
._e .q._.
AIESEC to Hold Youth Business Engagement Conference
Htun Htun Minn
W
orlds largest
sLudenL busI-
ness organi-
suLIon AESEC Is goIng
Lo orgunIse u busIness
conference for Myanmar
youths this month, the
non-prohL orgunIsuLIon
said.
TIe YouLI BusIness En-
gagement conference will
Luke pIuce Irom 11-1 JuIy.
TIe conIerence Is u hrsL
of its kind, a connection
evenL LIuL wIII unILe IIgI-
prohIe compunIes und job
seekers around the topic
of youth development in
Myunmur, AESEC suId
in a statement.
Young Myanmar people
will have the opportunity
to directly interact with
potential employers and
Ieurn ubouL besL prucLIces
of local and international
companies and organisa-
tions at the conference, it
said.
The conference includes
workshops, case stud-
ies, guest speakers, panel
discussions, networking
spaces and many interac-
LIon possIbIIILIes.
UnIIever Is LIe muIn
sponsor and event part-
ner for this conference.
AESEC, presenL In over
1z counLrIes, Iocuses on
promoting youth devel-
opment and international
exchange with students
and young professionals
by provIdIng InLernuLIon-
al work and volunteer op-
portunities.
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...:. ........:...~
.~ .~ . e . . q:~ . q. .:.
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~:. Unilever . ~. ~~ _ . . .
....:..__e.._. AIESEC
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
Myanmar Summary
Contd. P zz...(\orld Cup)
Contd. P zz...(\orld Cup)
World Cup and Backbone of Brazil Economy:
Lessons for Myanmar
T
he last few weeks,
ubouL LIree bIIIIon
IooLbuII uhcIonudos
worldwide were glued to
the world cup matches in
BruzII. TIe IrenzIed uL-
mosphere has penetrated
every corner of workspace
und socIuIILe. Around My-
anmar teashops and res-
LuurunLs Iud been pucked
with roars of support and
cheers.
Home Lo zo mIIIIon
and the largest country in
uLIn AmerIcu, BruzII Lo-
duy runks LIe 6LI IurgesL
economy In LIe WorId. As
u member oI BRCS eco-
nomIc bIoc (BruzII, RussIu,
India, China, and South
AIrIcu) LIIs uLIn AmerIcun
nuLIon uIso bousLs us one
of the emerging economies
oI LIe z1sL cenLury. As LIe
worId Lurns u 6o degree
Lo BruzII, IL Is worLIwIIIe
to illustrate how this Latin
AmerIcun nuLIon Ius mu-
neuvered its macroeco-
Stephen Seng
nomic policies i.e. priva-
LIsuLIon oI sLuLe-owned
busInesses, IIberuIIsuLIon
oI LIe bunkIng sysLem,
conLroI oI InuLIon, umong
other things free trade.
BruzII Is u beIemoLI
economy and comparisons
wILI Myunmur wouId be
dIsLunL, buL u Iew Iessons
such as implementation of
its early economic road-
mups, ubundonmenL Irom
dictatorship, and installing
a stronger democratic state
wouId be mucI more reI-
evant to our current situa-
tion.
Bockhone of
Brozilion economg
AccordIng Lo zo1z
orbes reporL, BruzII
reached its economic
power sLuLus uL No.6
surpussIng LIe UK wILI
its annual growth rate
of 5 percent per year. In
zo1, ILs GDP cIImbed
up Lo $z. LrIIIIon, LIe
highest since the country
introduced its massive
economic reform policy
called Plano Real (Real
PIun) In 1qqq uguInsL sur-
mounLIng InuLIon. Re-
ecLIng on LIe PIuno ReuI
progrum, BruzII InLro-
duced a monetary policy
by IncreusIng LIe InLeresL
ruLe, LIereby uLLrucLIng
foreign capital, creat-
Ing revenue, counLerbuI-
ance in the governments
debLs, und conLroIIIng In-
uLIon.
Since then the country
Ius been exIng ILs eco-
nomic activities and gen-
eruLIng sIgnIhcunL growLI
from a matrix of 3 sec-
tors i.e. agriculture 5.5
percent, manufacturing
z;. percenL - uuLomo-
bIIe, uIrcruIL, eIecLron-
ics, oil, energy and iron
- und servIces 66 percenL
- LourIsm, hnuncIuI ser-
vIces, dIsLrIbuLIon cIun-
nels, small and medium
sIzed enLerprIses und e-
commerce busInesses.
TIe governmenL oI Bru-
zil also introduced a fa-
vorubIe (noL wILIouL con-
LroversIes) und ReIorm
Program that promoted
access and ownership of
Iunds Lo o percenL oI LIe
population from 1 percent
of the countrys ancestry
ownership system. This
policy allowed the land-
less individuals with the
skills for agriculture and
horticulture develop-
menLs. OwnIng properLy
provided a sense of dig-
nILy und seII-worLI Ior
the grassroots people and
this in return generated
higher productivity in the
agriculture and property
development sectors.
The government was
very much aware of this
progress. And LIIs re-
form allowed expansion
and transformation of
ruruI Lo urbun. WILIIn
1o yeurs oI LIe und Re-
form Program, the gov-
ernment leapfrogged its
agriculture to manufac-
LurIng secLor by empIoy-
ing heavy mechanisation,
enubIed LIe uIIocuLIon
of property to 1 million
IouseIoIds und creuLed z
mIIIIon jobs. nLerLwIned
with land reform, the
government also heavily
invested in the develop-
ment of energy, water,
transportation, educa-
tion, and health; in coop-
eration with international
bunks und uIIIunces. Cur-
rently the country gener-
uLes energy Irom qo per-
cent of its hydropower
plants and supplying it
to various manufactur-
ing sectors. The country
is naturally endowed with
powerful streams and riv-
ers und BruzII reIIes on
this key resource in expe-
diting its economy.
Lessons for
Myanmar
Studies have consistent-
ly demonstrated that the
emerging economies like
BruzII, CIInu, und SouLI
AIrIcu puy IuII uLLenLIon Lo
land reform i.e. empow-
erIng LIe peopIe by uIIo-
cuLIng properLy; LIereby
instituting a sense of
ownership and trust. This
sIouId be u reIevunL Ies-
son for Myanmar as well,
where the the new land-
ownersIIp Iuw, LIe urm-
Iund BIII (zo11), und LIe
utilisation of mass empty
lands are in its infancy for
implementation.
TIere sIouId be u Iure
share of property in cities
like Yangon and Manda-
lay, where the ownership
sysLem Is conLroIIed by
smuII groups oI umuenL
individuals connected to
the past military govern-
ment. The current gov-
ernment is exerting its ef-
forts for multiple reforms,
buL sLIII requIres IuIhII-
ment of the fundamentals
for the masses i.e. safety,
security, peace and trust.
Any deveIopmenL pro-
ject should aim at overall
enrichment of the citizen
hrsL, und consequenLIy Lo
oLIer nuLIons. BruzII II-
lustrates Myanmar a good
lesson in its production of
energy. The two countries
share a similar scenario
in which each is endowed
with natural gas reserves
and hundreds of rivers for
hydropower production.
or Myunmur LIe pIc-
Lure Is dIerenL. Reuders
wouId know beLLer. TIIs
is one major constraint
the country has to tackle
with.
On LIe oLIer Iund,
concrete initiatives have
muLerIuIIsed sInce u semI-
democratic government
cume In zo11. BusIness
activities are on the rise.
ExpunsIon oI properLy
murkeL, D`s InLeresLs,
Inux oI InLernuLIonuI
projects, media penetra-
tion are on the agenda
of economic develop-
ment. These are positive
signs and the government
in cooperation with all
stakeholders could con-
LInue Lo exerL more eorL
Lowurds IoIIsLIc cIunge -
including the rural areas,
with reconciliation and
autonomy to the people
- Ior greuLer und InLegruI
economic activities.
As menLIoned, BruzII
empowered the people
hrsL und LrunsIormed LIe
service sector with a spe-
cIuI Iocus on LourIsm, h-
nuncIuI, e-commerce, und
reLuII busInesses. Toduy
BruzII`s cupILuI Suo PuuIo
Is u mugneL Ior sLurL-
ups und e-commerce. To
nume u Iew, e-commerce
busInesses IIke VIujuneL,
u LruveI bookIng sysLem,
und Buby, und onIIne
sIoppIng porLuI Ior buby
products, are reaping the
benehLs Irom InLerneL;
bused busIness operu-
LIons In BruzII. We see eI-
hcIency oI busIness und
LIe ow oI Lrude LIrougI
the high presence of in-
ternet. The same is appli-
cubIe Lo Myunmur, wIere
the growth for internet is
on the way. Young entre-
preneurs und busIness In-
dividuals could generate
IIgIer producLIvILy by en-
gugIng In InLerneL-bucked
busInesses.
AccordIng Lo MckIn-
sey nsLILuLe`s zo1 re-
port, Myanmar needs to
tackle four major sectors
Lo puII o momenLous
economic growth. This
includes transformation
of digital infrastructure,
sectoral shift from agri-
cultural to manufactur-
Ing, expunsIon oI weII-
pIunned urbunIzuLIon
und u gIobuIIy-connecLed
economy. These road-
maps are crucial elements
to Myanmars future de-
velopment. The author
perceives that transfor-
mation of digital infra-
structure would surely
boosL LIe economy In uII
sectors related to telecom.
A Iew e-commerce busI-
nesses are already present
in Yangon such as House,
an online channel for
searching property, and
Omyunmur, onIIne sIop-
ping. These guidelines are
mInImuI, buL wouId prohL
the country and its people
with higher productivity
and growth.
or more LIun 6o yeurs
Myanmar was the sick
mun oI AsIu, und wILIIn
three years it rose to the
international stage, is
IosLIng LIe ASEAN CIuIr-
manship and demon-
sLruLed spIendId ASEAN
Gumes. BuL LIe counLry
is in its state of convales-
cence. It is still enveloped
in challenges and civil un-
resL. TIey ure very vIsIbIe.
BuL reuI und susLuInubIe
A Hight attendent waIks past a muraI painted for the 2U14 WorId Cup at Congonhas Airport in Sao PauIo.
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
From page z...(\orld Cup)
From page z...(\orld Cup)
cIunges ure uIso possIbIe.
The present government
und dIerenL poIILIcuI pur-
ties including Su Kyis Na-
tional League for Democ-
rucy (ND) ure prepurIng
and running the race to-
wards the general election
In zo1. TIIs Is u reuI IooL-
buII muLcI. Becuuse uL LIe
end of the day, it is the peo-
ple of Myanmar who will
be LIe reuI pIuyers, decIde
and install a fully demo-
cratic institution in Nay
US Singapore Free Trade Agreement Anniversary
Shows Possibilities for Local Prosperity
Tom Stayner
L
usL monLI LIe US-
ASEAN BusIness
CouncII (US-ABC)
und US CIumber oI Com-
merce marked the tenth
unnIversury oI LIe UnILed
States free trade agree-
ment with Singapore at a
reception for Singaporean
Prime Minister Lee Hsien
Loong.
The anniversary of the
free trade agreement
sIows LIe possIbIe eco-
nomIc benehLs Myun-
mars strengthening ties
with the western nation
couId brIng IorLI.
Two yeurs ugo LIe Obu-
ma administration sus-
pended mosL oI UnILed
States sanctions on My-
anmar, which severely re-
sLrIcLed Lrude beLween LIe
two countries.
Without reforms in
working conditions and
Iubour rIgILs LIrougIouL
Myunmur, US InvesLmenL
in the country will remain
stagnant and wont reach
the prosperity of their re-
gIonuI neIgIbours.
TIe US-SIngupore Iree
Lrude ugreemenL (USSTA)
has spurred other trade in-
ILIuLIves In SouLIeusL AsIu
IncIudIng LIe Truns-PucIhc
PurLnersIIp (TPP).
The TPP is a trade agree-
menL beLween LIe UnILed
States and other 11 coun-
tries in the region aimed
at promoting economic
growth in partner coun-
tries throughout South-
eusL AsIu.
However, western trade
sanctions on Myanmar,
Imposed In zoo, Iuve
meunL US InvesLmenLs
in Myanmar have trailed
beIInd LIe counLry`s eco-
nomic cooperation with
other nations in the region.
Pyi Taw. Current criticism
Is LIuL LIe mIIILury bucked
governmenL occupIes z
percenL seuLs In boLI Ious-
es of parliament and this
mires the future of Myan-
mar. However there is no
LurnIng buck. TIe IooLbuII
match will continue and
LIe Iessons Irom BruzII
could provide Myanmar
with a glimpse of hope.
Stephen Seng is an MBA
(international manage-
ment) student at Nrtin-
gen University of Applied
Science. He is currently
based in Berlin, Germa-
ny, and can be reached at
sengyuan0508@gmail.
com.
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TIe UnILed-SLuLes` Iree
trade agreement with Sin-
gapore has seen the coun-
Lry become AmerIcu`s 11LI
largest export market,
wILI Lrude beLween LIe
two countries totalling
$6 bIIIIon, wIere us US
capital investment in My-
anmar makes up less than
1 percent of the countrys
LoLuI IoreIgn Income -
umounLIng Lo onIy $zq.6
million nationwide.
CIumber ExecuLIve VIce
President and Interna-
LIonuI AuIrs Heud Myron
BrIIIIunL suId IIs counLry`s
Iree-Lrude ugreemenL wILI
Singapore has helped
drIve IIgI IeveIs oI bIIuL-
eral economic growth.
SIngupore`s sLruLegIc
importance makes it a cru-
cIuI purLner Ior US busI-
nesses operating in the
AsIu PucIhc, BrIIIIunL suId.
Introduced on January 1,
zooq LIe USSTA remuIns
the only free trade agree-
menL beLween LIe US und
un ASEAN counLry.
TIe US-ASEAN BusI-
ness Council is the pre-
mier advocacy organisa-
LIon Ior LIe UnILed SLuLes
operations in the South-
eusL AsIu regIon - IeIpIng
the countrys investment
In SouLIeusL AsIu deveI-
op a trade output greater
than their cooperation
wILI BruzII, RussIu, ndIu
und CIInu combIned.
A Iree Lrude ugreemenL
beLween Myunmur und
LIe UnILed SLuLes Isn`L In
LIe curds. Even LIougI
mosL suncLIons Iuve been
suspended, and inter-
est continues to increase
Irom AmerIcun compu-
nies, Myanmar has a ways
to go in terms of develop-
ing an appropriate regu-
latory environment and
governance structures
that reduce risk and sup-
porL busIness.
However, President
Thein Seins governments
sweeping economic and
political reforms have
helped improve Myan-
mars trade relations with
LIe US, LIrougI reopen-
ing the country to foreign
trade and investment.
EurIIer LIIs monLI, up-
pureI compuny Gup be-
cume LIe hrsL mujor US
retailer to enter the coun-
try since the government
begun IIILIng Lrude sunc-
tions two years ago.
The retailers entry
into the country follows
LIe Ieud oI oLIer Lop US
brunds IncIudIng Cocu-
CoIu Co, GeneruI EIecLrIc
und APR Energy, uIreudy
investing in Myanmar, ac-
cording to the Wall Street
Journal.
US-ABC`s AIexunder
eIdmun suId SIngupore`s
strong governance and
weII-munuged IndusLrIuI
environment has encour-
uged LIe UnILed SLuLes Lo
expand the country as its
regional headquarters in
LIe ASEAN regIon.
TIe US-SIngupore TA
Ius seen bIIuLeruI Lrude
grow more LIun o per-
cent since it came into
eecL In zoo und serves
as a model for the kind of
ImpucL un TA cun brIng
Ior un economy, eId-
man said.
UnLII Myunmur cun
guarantee its working to-
wards a similar economic
und IndusLrIuI sLubIIILy, by
ImprovIng Iubour rIgILs,
working conditions, and
buIIdIng udequuLe InIru-
structure throughout the
counLry, muny US compu-
nIes wIII remuIn uL buy Lo
invest in the developing
nation.
A reporL reIeused by
Iubour groups In No-
vember zo1 Iound My-
anmar workers endured
extremely low wages,
which were up to less
LIun $; per monLI und
worked long, unsafe
hours, according to the
HumngLon PosL.
Protests occurred at gar-
ment factories throughout
Myanmar almost every
monLI In zo1, uccordIng
Lo LIe HumngLon PosL.
The Wall Street Jour-
nal also reported Gap
was forced to conduct nu-
merous review process-
es on Iubour vIoIuLIons
throughout Myanmar,
beIore mukIng pIuns Lo
enter the country.
However, since the Inter-
nuLIonuI ubour OrgunIsu-
LIon (O) IIILed ILs IoreIgn
industrial restrictions on
Myanmar at its annual
meeting two years ago, ef-
IorLs Lowurds beLLerIng LIe
counLry`s Iubour condI-
tions have improved.
Last year, the Myanmar
government signed an
ugreemenL wILI LIe O
Lo conducL LIe hrsL Nu-
LIonuI ubour orce Sur-
vey (S) In LIe counLry
sInce 1qqo.
TIe O und Myun-
mur`s MInIsLry oI ubour
und EmpIoymenL pIun Lo
jointly administer the la-
bour Iorce survey In u nu-
tionwide census format.
TIe hndIngs wIII cover
u runge oI Myunmur-
employment issues in-
cluding youth unem-
pIoymenL, Iorced Iubour,
cIIId Iubour und LIe quuI-
ity of factory conditions
throughout the country.
Myanmar authorities
Iope LIe Iubour Iorce sur-
veys data can help the
government formulate
policies to improve em-
ployment conditions for
local workers throughout
the country.
Myanmar Summary
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Myanmar Summary
Myanmar Summary
Construction Firms to
Get RDB Financing
May Soe San
C
ompanies awarded
tenders for con-
struction projects
that are funded with capi-
tal from the Ministry of
IvesLock, IsIerIes und
Rural Development (ML-
RD) wIII now be ubIe Lo
apply for loans of up to
33 percent of the value of
the project from the Rural
DeveIopmenL Bunk.
TIe hrms wIII be ubIe Lo
secure Iouns uL 1z percenL
per year with relevant de-
partments to act as guaran-
tors, following an applica-
LIon process, LIe bunk suId.
The Rural Development
Bunk (RDB) Is currenLIy
involved in scrutinising
several applications; how-
ever, they declined to di-
vuIge LIe number oI busI-
nesses currently involved
in the process.
The companies awarded
the tenders are required
to deposit a guarantee
bused on LIe Lype oI pro-
jecL und compIeLe o per-
cenL oI LIe projecL beIore
LIe bunk wIII provIde
loans to facilitate the pro-
cess.
TIIs Is LIe hrsL LIme LIe
RuruI DeveIopmenL Bunk
has issued these sort of
loans and has invited en-
quiries from any interest-
ed parties.
Strategic Environmental Assessment
of Thilawa SEZs Second Phase Starts
Htun Htun Minn
T
he strategic envi-
ronmental assess-
menL (STA) Ius
been IuuncIed Ior LIe sec-
ond phase of the Thilawa
SpecIuI EconomIc Zone
(SEZ), wIIcI wIII cover
un ureu oI ubouL z,ooo
IecLures (q,qqz ucres),
uccordIng Lo SEZ`s mun-
agement committee.
Jupun-bused EnvIron-
mental Resource Manage-
menL Compuny, In coIIub-
oration with Myanmars
E-Guurd EnvIronmenLuI
Services, are jointly con-
ducting the assessment.
TIe TIIIuwu SEZ, Io-
cuLed z mIIes souLI oI
Yangon, will cover a total
oI z,qz IecLures wIere
project developments on
q6 IecLures (81 ucres)
Ior LIe hrsL pIuse (CIuss
A) Ius uIreudy sLurLed.
In the original plan for
the second phase of the
projecL LIe z,ooo-IecLure
ureu wus pIunned Lo be
uIIocuLed InLo 1,o8 Iec-
tares for industrial area,
;o IecLures Ior commer-
cIuI ureu und z IecLures
Ior pubIIc use.
However, to avoid dam-
aging mangrove forests,
universities and residen-
tial quarters, the alterna-
tive plan has proposed
to change the use of land
InLo q86 IecLures Ior LIe
industries, 131 hectares
into residential quarters,
15 hectares for commer-
cIuI ucLIvILIes und 68;
IecLures Ior pubIIc use.
OnIy uILer LIe ussess-
ments on companies have
hnIsIed cun LIe envIron-
menLuI survey be con-
ducLed. BuL IL`s Iurd Lo
predict how long that as-
sessment will take as the
deLuIIs cunnoL be rusIed,
said Dr Than Than Thwel,
joint secretary of the Thil-
uwu SEZ munugemenL
committee.
Construction of the Thil-
uwu SEZ wus IuuncIed on
November o IusL yeur,
wILI LIe InILIuI 81 ucres
going on sale in May of
this year.
Most of the investments
in the development of
LIe SEZ Iuve come Irom
Japan and Taiwan, with
uddILIonuI ASEAN coun-
tries also investing in the
project.
The zone will include
factories for textiles,
manufacturing, hightech
und Iubour InLensIve In-
dustries.
A LoLuI oI zo bIIIIon
($1q mIIIIon) oI LIe
1 bIIIIon Ioun Irom LIe
Japanese International
CooperuLIon Agency Ius
been uIIocuLed Ior LIe de-
velopment of the Thilawa
SEZ, wILI un uddILIonuI
1q bIIIIon uIIocuLed Ior
upgrading Yangons elec-
LrIcILy dIsLrIbuLIon und
generation network.
Two Myanmar and two
Japanese companies es-
LubIIsIed u joInL venLure
under the name of Myan-
mur-Jupun TIIIuwu DeveI-
opment Co Ltd in Tokyo
on OcLober zq IusL yeur Lo
operuLe LIe SEZ projecL.
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Construction workers demonstrate with heavy tractors during the commencement ceremony of Thilawa
SEZ Project in Yangon.
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
24
Myanmar Summary
Myanmar Summary
PROPERTY & REAL ESTATE
Tender Process and Evaluation Criteria
Announced to Develop Kyaukphyu SEZ
Aundrea Montao
C
PG Consultants, the
key udvIser Ior In-
viting international
deveIopers Lo LIe Kyuuk-
pIyu SpecIuI EconomIc
Zone (KP-SEZ) In Myun-
mar, has announced the
evaluation criteria and
tender process for the
zone uL u roud sIow re-
cently.
TIe KP-SEZ Roud SIow
wus IosLed by u consor-
LIum oI SIngupore-bused
compunIes, Ied by CPG
Consultants, all tasked
wILI deveIopIng LIe mus-
ter plan for Myanmars
newest special economic
zone, wIIcI Is u purLner-
sIIp wILI BId EvuIuuLIon
und AwurdIng CommILLee
(BEAC) oI KP-SEZ.
KP-SEZ Is In RukIIne
state and strategically
located to connect the
dynamic economies of
ASEAN, ndIu und CIInu.
KP-SEZ Is Iome Lo Myun-
mur`s onIy nuLuruI deep-
seu porL und IosL Lo ubun-
dant natural resources in
oil and gas and plentiful
marine resources.
The development area
oI LIe hrsL pIuse oI LIe
KP-SEZ Is 1q.1 squure
kIIomeLres wILI 1o sq km
expecLed Lo be deveIoped
for industrial use and 5 sq
km for residential, which
Is expecLed Lo uccom-
moduLe qo,ooo IousIng
units as well as schools,
hospitals and shopping
areas.
KP-SEZ Ius LIree deveI-
opment components that
IncIude LIe deep-seu porL,
un IndusLrIuI purk und In-
tegrated residence.
TIe commILLee Is ex-
pected to host companies
in construction materials,
textile manufacturing,
food processing, oil and
gus und LourIsm Indus-
tries.
The speakers at the road
show emphasised the
governmenL`s commIL-
ment to developing the
KP-SEZ In u LrunspurenL
manner that takes into
account the needs of local
popuIuLIons und envIron-
mental impact.
AccordIng Lo CPG Con-
sultants, the planning
thus far has included
stakeholders at all levels,
including local residents
who have shared their
concerns for the project.
AIso noLed wILI enLIu-
siasm at the road show
Is LIe governmenL`s com-
mitment to developing
supporLIng InIrusLruc-
Lure, sucI us energy, LeI-
ecommunications, water
and road upgrades, and
connecLIng LIe SEZ Lo LIe
national highway.
KP-SEZ wIII provIde
LIe sume InvesLor Incen-
LIves us TIIIuwu und Du-
weI SEZs, us per LIe zo1z
SpecIuI EconomIc Zone
Iuw. TIIs IncIudes gen-
erous tax incentives and
exemption from customs
duLIes Ior upproved busI-
nesses needing to import
construction materials,
mucIInery und equIp-
ment, vehicles and other
items.
On JuIy 1q, LIe govern-
ment will issue a call for
LIree expressIons oI InLer-
esL (EO) Ior LIe deveIop-
menL oI LIe deep-seu porL,
IndusLrIuI purk und InLe-
grated residential area.
Upon receIvIng u puymenL
oI $1,ooo (K1,ooo,ooo),
un uppIIcunL wIII be Is-
sued LIe EO uppIIcuLIon,
wIIcI musL be submILLed
by AugusL 11. SIorL IIsLed
cundIduLes wIII be noLIhed
by SepLember q.
SIorL-IIsLed cundIduLes
wIII be usked Lo submIL
a request for proposal
(RP) on SepLember 1,
wIIcI Is due by Novem-
ber 1o. TIe uwurd oI LIe
Lender Is expecLed Lo be
unnounced In eurIy zo1.
or LIe deep seu porL,
compunIes wIII be evuIu-
uLed bused on LIeIr ex-
perience in the design,
deveIopmenL, hnunce und
operation of at least one
porL LermInuI (6o per-
cenL) und LIeIr hnunces
from the previous three
hscuI yeurs (qo percenL).
In case of the industrial
purk, compunIes wIII be
evuIuuLed bused on LIe
completion of projects
within the past seven
yeurs (o percenL), LIe
pusL LIree hscuI yeurs
(qo percenL), und uwurds
und cerLIhcuLIons (1o per-
cenL).
or LIe resIdenLIuI ureu,
compunIes wIII be evuIu-
uLed bused on LIe com-
pletion of projects within
the past seven years, with
empIusIs on Iurge pro-
jecLs (o percenL), hnun-
cial strength represented
in the organizations past
LIree hscuI yeurs (qo
percenL) und uny uwurds
und cerLIhcuLIons (1o per-
cenL).
Yungon Om ce Rutes Highest in SIA
Andrew Batt
A
s Myunmur con-
tinues to open
up Yungon`s oI-
hce murkeL conLInues Lo
thrive to the extent where
the city is now home to
LIe mosL expensIve om ce
rental rates in Southeast
AsIu.
n ILs IuLesL murkeL re-
porL, CoIIIers nLernuLIon-
al Myanmar noted that
Yungon`s om ce sLock cur-
renLIy sLunds uL 11z,ooo
sqm, with more than
zo,ooo sqm oI new pro-
jects in the pipeline and
scIeduIed Lo be compIeL-
ed Irom now unLII zo18.
AL LIe end oI 1Q zo1q,
LIe Yungon cILy-wIde oc-
cupuncy ruLe Improved by
three percentage points
quurLer-on-quurLer Lo
8;percenL, wILI more
LIun q8,ooo sqm oI sLock
occupIed. As u resuIL,
rents continue to trend
upwards although at a
less acute rate than seen
In zo1z und zo1.
Yangon currently has the
highest average monthly
rent in the region, higher
than the average rents of
uII SouLIeusL AsIun cILIes.
AL presenL, CoIIIers suId
that the average prime
rent in the city stands at
$8; per sqm. TIuL`s more
than three times rates in
Bungkok und zo percenL
higher than in Singapore.
BesIdes LIe Iuck oI sIzeu-
bIe suppIy In LIe pIpeIIne,
premIum om ce buIIdIngs
of international standard
remuIn non-exIsLenL In
Yungon, uccordIng Lo CoI-
IIers. WIIIe mosL muILInu-
LIonuI compunIes In gen-
eruI preIer Lo be IocuLed
In u prIme om ce buIIdIng,
LIey InevILubIy seLLIe wILI
LIe besL opLIon In Yungon.
AL presenL, LIere ure
onIy Iour buIIdIngs In LIe
city that are considered
beLLer In quuIILy. Demund
for these spaces is only
expected to heighten,
yet the supply of quality
buIIdIngs Is scunL. How-
ever, as developers see
LIe need Lo uLLrucL bIgger
tenants, new projects are
expected to deliver decent
quality spaces in the next
LIree Lo hve yeurs.
CoIIIers predIcLs om ce
rental rates in Yangon will
rIse by more LIun z per-
cent in the next two years.
Andrew Batt is Inter-
national Group Editor of
PropertyGuru Group.
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(KP-SEZ) ~~~ .~~:
q .. ._. . . . .:. e ~ ..'q:
~ ~.~~_~... CPG
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....~~.:_.~~.:.~
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Col l i ers I nternati onal
Myanmar -.,:~ . ....~ ~
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q, ~ , ._ ...~ .~
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
Myanmar Summary
BMWs $1-Billion Plant Surfs Mexican
Investment Wave
Alexandra Alper
L
uxury car maker
BMW reveuIed u
$1 bIIIIon MexIcun
plant investment last
week, becomIng LIe IuLesL
major automaker to take
advantage of the coun-
trys growing industrial
buse und LurI-Iree uccess
Lo LIe US murkeL.
BMW ouLIIned pIuns Lo
buIId u IucLory In LIe cen-
tral Mexican city of San
Luis Potosi, reducing the
German companys de-
pendence on IIgIer-cosL
plants at home.
TIe pIunL wIII begIn us-
sembIIng modeIs In zo1q
with an initial work-
Iorce oI 1,oo und un-
nual production capacity
oI 1o,ooo veIIcIes, LIe
company said.
MexIco Is un IdeuI Iocu-
LIon Ior LIe BMW Group,
production chief Harald
Krueger said in a state-
menL. We ure conLInuIng
our strategy of produc-
LIon IoIIows LIe murkeL.`
Germanys luxury car
mukers - BMW, AudI und
Mercedes-Benz - ure ex-
panding overseas as their
domestic plants struggle
to meet strong demand
Ior new veIIcIe oerIngs
In LIe UnILed SLuLes und
AsIu.
WILI LIIs InvesLmenL,
Mexico is stepping up to
premIum-IeveI produc-
LIon oI gIobuI veIIcIes,
MexIcun Economy MIn-
ister Ildefonso Guajardo
said as the plant was an-
nounced.
BMW dId noL reveuI
what type of vehicle it
wIII buIId, und u spokes-
woman for the company
suId no decIsIon Iud been
mude. BuL severuI MexI-
cun und Europeun om-
cials at the presentation
suId LIey beIIeved LIe
plant would produce 3 Se-
ries cars.
AL some poInL Ieurd
that they were talking
ubouL LIe SerIes, Guu-
jardo told reporters after
LIe evenL. BuL don`L
Iuve LIe omcIuI conhrmu-
LIon.
Guajardo added that at
IeusL one oLIer bIg uuLo
InvesLmenL wouId be un-
nounced LIIs summer buL
dId noL eIuboruLe. ReuLers
reported last month that
Kia Motors Corp plans to
breuk ground soon on u
new plant in Mexico.
MexIco Is beIng con-
sIdered us u possIbIe Io-
cation of our next over-
seus producLIon IucIIILy,
Kia spokesman Michael
Choo said in a statement,
adding that the company
Iuced u suppIy sIorLuge
sILuuLIon In LIe AmerIcus
regIon.
Mexicos auto sector is
gaining critical mass as
more gIobuI brunds open
producLIon IInes, boosL-
ing the supplier network.
BMW`s move comes
days after Daimler an-
nounced new Mercedes
production in Mexico
with partner Nissan Mo-
tor Co Ltd, which already
operates two plants in the
country where it had re-
cently increased capacity.
TIe premIum brunds
ure hnuIIy reuIIzIng LIuL
Mexico has the capacity to
buIId sIgnuLure veIIcIes,
HS AuLomoLIve unuIysL
Guido Vildozo said.
We ure goIng Lo see uII
these plants starting with
one or two products at the
very begInnIng, buL LIey
wIII gruduuIIy become
crILIcuI pIIIurs oI prohL-
ubIIILy Ior LIe premIum
munuIucLurers, Ie udd-
ed.
MexIco benehLs Irom
LurI-Iree exporLs Lo LIe
UnILed SLuLes us weII us
Europe, wIIIe ILs IucLo-
rIes ure beyond LIe reucI
oI LIe UnILed AuLo Work-
ers unIon, wIIcI Ius been
sLruggIIng Lo boosL ILs In-
uence In LIe US SouLI.
BMW`s InvesLmenL
comes amid a domestic
industrial cost review that
has some German unions
worrIed ubouL LIeIr Iong-
er-Lerm ouLIook, us LIe
company reduces reliance
on sIuggIsI Europeun
markets that still account
Ior qq percenL oI suIes.
The plant also increases
BMW`s beL on LIe UnIL-
ed States, which is the
worId`s IurgesL Iuxury-cur
market along with China.
n MurcI, BMW un-
nounced u $1 bIIIIon In-
vestment to expand ca-
pucILy by o percenL uL
ILs pIunL In SpurLunburg,
South Carolina, where
IL buIIds u runge oI sporL
utility vehicles. Reuters
~..~:.~.~ BMW ._
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q .. ._. . . _ .~ , ~_ ..:~
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~~~ ~.~:....,q:.|''
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:.,-~..~:.~...
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Mercedes-Benz ~ ._ ~..
q ~, _._ .: . . ~:q ~ ~
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q, , , .~, .:q..:._ ~:
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._ ._ ~:.~. .~.:..:.
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~_.,._...q .._e~_..
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q .. .. ~~ .q:~ ..:
.~ . ~ . .q:.~q:q ~.:.
~_.:.~ .~,..,_ ,.|~
....q.~:..:. ~..._e
e.._~:. ._.:_~:.._.
Changes in Exchange Policy
Daunt Local Auto Assemblers
Phyo Thu
M
yanmars auto-
motive factories
are concerned
that recent government
changes to locally assem-
bIed veIIcIes excIunge
policy are undercutting
the competitiveness of the
counLry`s IocuIIy-ussem-
bIed cur IndusLry.
Decades of isolation left
Myunmur`s rouds hIIed
wILI uuLomobIIes In ex-
tremely poor condition.
n un eorL Lo repIuce oId
cars, the government up-
dated its vehicle exchange
program, which allows car
owners LIuL meeL specIhc
requirements to trade in
their vehicle for permis-
sion to import a new one.
SInce PresIdenL U TIeIn
Sein came to power in
zo11, LIe governmenL`s
easing of restrictions on
imported goods has seen
IoreIgn cur brunds spreud
throughout the countrys
automotive sector.
Under LIe new govern-
ment policy, cars that are
1o yeurs oId und In poor
condition now qualify for
LIe excIunge progrum. Be-
fore the policy change, ve-
IIcIes Iud Lo be uL IeusL zo
yeurs oId Lo be Lruded InLo
for car dealers to receive an
import permission slip.
AILer cIungIng LIe veII-
cle import policy, the gov-
ernment granted more
licences to the countrys
factories to produce cars,
in the hopes of increasing
demand for local vehicle
manufacturing.
BuL IocuI cur munuIuc-
turers are worried the in-
creasing spread of world
brunds wIII conLInue Lo
undermine the market-
ubIIILy oI IocuI producers.
We don`L sLund u
cIunce, Ko Kyuw NuIng,
a car trader from Min Ye
Kyaw Swar auto trading
station, said.
ucLory owners suy IocuI
uuLomobIIe IucLorIes ure
ubouL Lo sIuL down.
Now, `ve sLopped uu-
LomobIIe busInesses.
dont want to say anything
ubouL LIe governmenL`s
policy and I dont even
wunL Lo Ieur ubouL uuLo-
mobIIe busIness, suId Arr
Mann Thit, former owner
of a car factory which pro-
duced light truck vehicles.
AILer LIe purIIumenL
conhrmed Lo wILIdruw
over qo,ooo IocuI-pro-
duced vehicles, local cars
prIces IIked by ubouL
K1,;oo,ooo ($1,;oo), uc-
cording to car dealers.
nIund TrunsporL Ad-
ministration Department
AssIsLunL DIrecLor U Moe
Myint said the automo-
tive industry needs more
information from the gov-
ernment regarding what
curs cun be swupped wILI
manufacturers.
TIere sIouId be specII-
Ic InsLrucLIons ubouL LIe
year, models and owner-
sIIp perIods eecLed by
LIe cIunges, Ie suId.
Myanmar Summary
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
26
Myanmar Summary
AUTOMOBILE
GM Switch Complaints Began 17 Years Ago,
Long Before Cobalt
Paul Lienert
G
eneral Motors car
owners Iuve been
complaining to
deuIers ubouL deIecLIve
ignition switches since
1qq;, yeurs beIore LIe
automaker launched the
CIevroIeL CobuIL und oLI-
er small cars with faulty
switches linked to at least
13 deaths.
GM this week expand-
ed its recall of cars with
swILcI Issues by more
LIun 8 mIIIIon, buL IL dId
noL IndIcuLe wIen IL hrsL
Ieurned oI probIems In
curs IncIudIng LIe 1qq;
CIevroIeL MuIIbu und LIe
zooo CIevroIeL mpuIu.
A ReuLers revIew oI u
consumer complaints da-
Lubuse muInLuIned by US
safety regulators showed
that GM dealers were
LoId oI swILcI-reIuLed de-
fects almost as soon as
LIe MuIIbu wus puL on LIe
market, and that many
couId noL hx LIe deIecLs.
EurIy Issues IncIuded
keys that either stuck in
LIe IgnILIon or couId be
pulled out while the ve-
hicle was running, as well
as ignition switches that
failed to start the engine
or apparently caused the
engine to stall.
In later years, some
owners said their cars
stalled while on the high-
way and one quoted a
dealer as saying changing
the switch could solve the
probIem.
In one of the earliest
compIuInLs hIed wILI LIe
National Highway Traf-
hc SuIeLy AdmInIsLruLIon,
a New Jersey woman in
AprII 1qq; suId sIe Iud
been sLrunded seven
LImes wIen Ier new
1qq; MuIIbu couId noL
be sLurLed, wIIIe LIe key
remained stuck in the ig-
nILIon und couId noL be
turned.
The ignition was re-
pIuced LwIce by Ier deuI-
er, buL LIe probIem wus
not resolved.
cunnoL compreIend
Iow LIree dIerenL... Ig-
nILIon cyIInders cun uII be
deIecLIve, sIe wroLe.
A GM spokesmun suId
he could not say what was
known ubouL LIe mpuIu
issue nearly two decades
ago and that GM had de-
cided to make the recent
recall after the most ex-
haustive safety review in
company history.
GM advised dealers
ubouL IgnILIon Issues on
boLI curs In zoo1, send-
Ing so-cuIIed servIce buI-
letins, which generally
descrIbe cusLomer Issues
and potential solutions.
BuL GM dId noL recuII
LIe 1qq; MuIIbu und zooo
mpuIu Ior swILcI-reIuLed
issues until last week,
wIen 8.z mIIIIon GM
veIIcIes were cuIIed buck
Ior unInLended IgnILIon
key roLuLIon, wIIcI cun
Lurn LIe engIne o wIIIe
a vehicle is moving, cut-
LIng o power Lo sLeerIng,
brukes und uIr bugs.
Myanmar Summary
Japanese Automakers Boost
Investment in US by $5b in 2013
Krista Hughes
J
apanese carmakers
boosLed InvesLmenL
In LIeIr US pIunLs by
more LIun $ bIIIIon In
zo1, LIe bIggesL Increuse
on record, new hgures
Irom LIe Jupun AuLomo-
bIIe MunuIucLurers Asso-
ciation showed.
Total manufacturing
InvesLmenL In US pIunLs,
vehicles and engines
reucIed $qo.6 bIIIIon In
zo1, up $.z bIIIIon Irom
the previous year and the
bIggesL jump sInce Jupu-
nese automakers started
buIIdIng US IucLorIes In
LIe eurIy 1q8os.
Since Honda Motor Co
begun mukIng curs In
OIIo In 1q8z, Jupunese
automakers have come
to rely on locally made
veIIcIes Ior LIe US mur-
keL. AbouL ;o percenL oI
LIe veIIcIes soId by Jupu-
nese brunds In LIe UnILed
States are made in North
AmerIcu.
Japanese automakers
cuL LIe exposure Lo ucLu-
ating currency valuations
und sIIppIng expenses by
mukIng curs In LIe UnILed
States, Mexico and Cana-
du Ior LIe US murkeL.
US empIoymenL rose
sIIgILIy Lo 8z,816 workers
IusL yeur uL LIe z6 munu-
IucLurIng IucIIILIes, 6
research plants and dis-
LrIbuLors operuLed by Jup-
anese automakers Honda,
Toyota Motor Corp, Nis-
sun MoLor Co, Suburu, u
unIL oI ujI Heuvy ndus-
LrIes, MILsubIsII MoLors
Corp and Isuzu Motors.
The increase in workers
employed on research
and development was the
bIggesL sInce zoo.
DIrecL empIoymenL
through manufacturing
and R&D increased for the
third year in a row, prov-
ing the Japanese auto in-
dusLry`s vuIue Lo AmerIcu
and its many hard work-
ers, suId JAMA USA gen-
eruI dIrecLor Ron Book-
bInder.
AnoLIer 1q,68 work-
ers were employed at the
6,1z deuIersIIps operuL-
ed by Jupunese curmukers
IusL yeur, JAMA suId.
BookbInder suId LIe
number oI munuIucLur-
ing workers at Japanese
pIunLs In LIe UnILed
SLuLes rose z.; percenL Lo
q,qqq. Reuters
The condition is similar
to an issue with ignition
swILcIes In z.6 mIIIIon
other GM cars recalled
earlier this year, includ-
Ing LIe CobuIL, wIIcI wus
soId Irom zoo-zo1o, und
the Saturn Ion, which was
soId Irom zoo-zoo;.
GM has acknowledged
1 swILcI-reIuLed deuLIs
in those cars. This week
it tentatively linked three
additional deaths to two
crashes, one involving a
zoo mpuIu und LIe oLI-
er u zooq mpuIu.
GM this year has re-
called a total of nearly 15
million cars with switch
issues. Reuters
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Myanmar Business Today
mmbiztoday.com
IT & TELECOM
27
Myanmar Summary
Ministry of Communications to Co-host
Telecoms Conference in September
T
Ie z
nd
unnuuI Myun-
mur ConnecL conIer-
ence, an executive
summit to tie Myanmar
wILI LIe InLernuLIonuI LeI-
ecoms murkeL, Is Lo be co-
IosLed by LIe MInIsLry oI
CommunIcuLIons und n-
formation Technology for
the second year running,
the organiser said.
TIe conIerence, Myun-
mur ConnecL zo1q, wIII
Luke pIuce on SepLember
16-1; In Nuy PyI Tuw,
BrILIsI evenL orgunIser
Capacity Media, which is
u purL oI Euromoney n-
stitutional Investor, said.
The partnership means
LIuL senIor mInIsLry rep-
resentatives will outline
their vision for the future
of communications and
IT in Myanmar at the
summit, it added.
Capacity Media said
Myunmur ConnecL zo1q
wIII buIId on zo1`s pIuL-
form and examine how
mucI LIe operuLIng en-
vironment has changed
over the last year.
As LIe InLernuLIonuI
mobIIe IIcence wInners,
Ooredoo und TeIenor,
near their launch dates,
buIIdIng InIrusLrucLure
across Myanmar have
reached a fever pitch.
Kyaw Min Ross Cormuck, CEO oI
Ooredoo Myunmur, und
PeLLer urberg, CEO oI
Telenor Myanmar, will
boLI ouLIIne LIeIr sLruLe-
gies and targets for the
yeur uIeud uL LIe conIer-
ence, the organiser said.
TIese wIII be joIned by
a senior representative
Irom Myunmur`s Incum-
benL operuLor, Myunmur
PosLs und TeIecommunI-
cuLIons (MPT), und LIe
CEO oI YuLurnupon TeI-
eporL PubIIc Compuny,
SIune TIu Aung.
TIe LerresLrIuI deveI-
opments in Myanmar,
alongside the entry of
many multinationals into
the market have put a lot
of pressure on Myanmars
international providers,
und LIe need Ior more cu-
pacity is set to increase.
ExecuLIves Irom LIe In-
LernuLIonuI currIer mur-
keLpIuce ucLIve In Myun-
mar will also share their
vIew oI LIe murkeL's Lru-
jectory and unveil plans
for increased terrestrial
und subseu connecLIvILy.
UnLII now hnuncIuI ser-
vices in Myanmar have
been crILIcuIIy underde-
veloped. The proliferation
of devices in the market
throws the doors wide
open Lo bunks, operuLors
and IT entrepreneurs as
LIey IuuncI mobIIe money
and payment applications.
U TIeIn Oo, cIuIrmun oI
LIe Myunmur CT DeveI-
opment Corporation and
IT veteran, will deliver a
presenLuLIon on LIe Im-
pact of ICT advancement
on Myanmars enterprise
market.
Myunmur ConnecL zo1q
will close with a plenary
panel highlighting the
needs oI Myunmur`s con-
sumers and will delve
into the applications most
relevant to them such as
mAgrIcuILure, mHeuILI
und mEducuLIon.
New Ior zo1q, Cupuc-
ity Media will add the
SLurL-up SIowcuse dur-
Ing wIIcI some oI My-
unmur`s Iome-grown T
InnovuLors und enLrepre-
neurs will showcase their
applications and ideas to
delegates.
~ ., ., ., _. ~ . ~ e
~_~.._.:~~_e. Myanmar
Connect 2014 ~'~ .~
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Connnect 2014 ~ ~_., ~. ,
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Panasonic to Expand Business in Myanmar
P
anasonic Corp,
one of the largest
eIecLronIcs prod-
uct manufacturers in the
world, will expand its
busIness by cooperuLIng
with local engineering
companies in Myanmar.
TIe compuny Is pIun-
nIng Lo sLrengLIen de-
velopment of localised
products and to expand
suIes In boLI busIness
Lo busIness (BzB) und
busIness-Lo-consumer
BzC) secLors, IdenLIIyIng
Myanmar as a strategic
market for future growth,
Zwe Wai sLuLe-run medIu reporLed,
quoLIng un om cIuI oI Pu-
nusonIc AsIu-PucIhc.
L pIunned Lo IoId hrsL
exIIbILIon dIspIuyIng LIe
IuII runge oI BzC und BzB
solutions in Yangon in
OcLober LIIs yeur.
The new showrooms
exIIbILIng boLI BzC und
BzB soIuLIons wILI ser-
vice centres incorporated
will also open in Yangon
and Mandalay later this
year.
The new Panasonic
AsIu-PucIhc Myunmur
bruncI wus seL up In My-
anmar last year.
~. : ~_~ .. ... .. .. _ .
~ . . ._ ~ . ~ _~ ..:.~,~
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Corporation ._ _.,.:.
~ . .. :..q.. . , ..:. .
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- ~:q .. e ~ .... q:
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B2B .q:._eq..~.:..
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Myanmar Summary
R
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Petter Furberg (L), CEO of Telenor Myanmar, and Ross Cormack, CEO of Ooredoo Myanmar, pose for a
photo at Myanmar Connect 2013.
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Myanmar Business Today
mmbiztoday.com
28
INTERNATIONAL AND DOMESTIC FLIGHT SCHEDULE
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 2 3 4 5 6 7 RGN SIN 19:05 23:40 TigerAir TR2826 1 2 3 4 5 6 7 SIN RGN 17:05 18:25 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKo ong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
*PPleaasee noote thee dday change for the deparrture time too Hong Kongg.
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 13:00 14:00 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
Mann Yadanarpon Airlines
July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
Myanmar Summary
Telenor to Open Community Information
Centres in Myanmar
Signs partnership with MIDO
T
elenor Myanmar
und IocuI non-prohL
Myanmar ICT De-
veIopmenL OrgunIzuLIon
(MDO) wIII seL up und
run ubouL zoo Commu-
nity Information Centre
(CC) In Myunmur.
The centres aim to foster
user udopLIon oI mobIIe
services and internet in
rural areas and improving
digital literacy through
nationwide initiatives for
schoolchildren, Telenor
said.
TIe cenLres wIII be open
to anyone in the local com-
munity, from farmers to
youth and local villagers.
U Nuy PIone uLL, ex-
ecuLIve dIrecLor, MDO,
suId: TIe purLnersIIp
will provide a connection
from rural communities
throughout Myanmar to
the outside world, and
help spread knowledge
to people who have pre-
viously not experienced
connectivity or had easy
to access to information.
The initial pilot project
wIII esLubIIsI hve Com-
munity Information Cen-
Lres by LIe end oI zo1q In
Ayeyurwudy, KuyIn,
T
Ie IIrIng oI An-
LIony NoLo, u Iurd-
cIurgIng bunker
with deep ties to Wall
Street, furthers Twitters
execuLIve sIumIng umId
increasing investor scep-
ticism over whether the
mIcrobIoggIng sILe cun
transform its mainstream
presence into widespread
adoption.
NoLo, q6 yeurs oId, re-
places Mike Gupta, who
us cIIeI hnuncIuI omcer
worked closely with his
successor as they prepped
Ior TwILLer`s InILIuI pubIIc
oerIng jusL eIgIL monLIs
ago.
GupLu, q, wIII become
senior vice president of
strategic investments at
Twitter, a new group that
wIII IIkeIy be responsIbIe
Kyaw Min
Yoree Koh
Nay Pyi Taw, Yangon and
Bugo.
SeLLIng up LIe CCs Is
jusL LIe begInnIng - goIng
forward we also want to
oer LruInIng und educu-
LIon, U Nuy PIone uLL
added.
TIe CCs wIII be run by
local social entrepreneurs
wIo ure seIecLed by MDO
and Telenor, and the tel-
ecoms company will pro-
vide all internet connec-
tivity and equipment.
The marketing of the
CC cenLres wIII be done
joInLIy by LIe enLrepre-
neurs and Telenor Myan-
mar.
PeLLer urberg, CEO oI
Telenor Myanmar, said
uL LIe sIgnIng: TeIenor
Is commILLed Lo conLrIb-
uting to the communities
in markets where it oper-
ates. Telenor Myanmar
wIII buIId on LIIs sLrong
track record when work-
ing with the government
and relevant organisa-
tions to develop a corpo-
ruLe responsIbIIILy und
community engagement
progrumme In Myunmur.
TeIenor suId ILs mobIIe
network in Myanmar will
be IuuncIed In SepLember
and is expected to cover
qo percenL oI LIe popuIu-
LIon wILIIn hve yeurs.
The Myanmar govern-
ment is implementing a
plan to increase the tel-
epIone densILy Lo o per-
cenL by zo1q-1 und 8o
percenL by zo1-16.
TIe number oI InLer-
net users in the country
reucIed z.q mIIIIon us
oI Muy In LIe hscuI yeur
zo1q-1, uccordIng Lo oI-
hcIuI hgures.
e.,~ ~e..,:._
MIDO . ....|...:q~
...:~_..~.~.q..
_ . . .,:~ _ ., .: . ~
Community I nformation
Centres (CIC) .:. e...
q, ~.~... ....|.~:
CIC ~~ ., ~_.:
..:q~.:.q, ...:.._
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~..|.~:.:.._ .~.
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.e.:.~~~ .~.~:.
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.:.. q :.:.. :.~.|~~
._ . .. ~. ._.. q, e . .
....:.._e .q._.
~e . .,:_., .:-~. ..:
~q:q .. Mr. Petter Furberg
~ .|e: ~.,~.q._~.~
.~ . ~ .q. .. _e. _. . _., .:.
.: Community Information
Centre .~ e...e~~~
MIDO ... ....:..q~
~e ~._ . ~. . , .~ ~
..:q~q~:~ ~e..|
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..: q ~ ~ ...~ ~ ~ .. :
., ~ . ~. .~~ ..~
~ ~~._...q, q_.,.|
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.~ . ~ .q. .. ~ ._.:.
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Information Centre |..~
~~, ...~ ~_..:~
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CIC .:.~ MIDO .
~e . .,:_., .:. .q ..e ..:
_._~.q .....:..q...,.
q.:.~ ..:q~.__e._..
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.:.~ .:~.....:.._.
More Change at Twitter as It Hires Banker
Anthony Noto as CFO
for outside investments
the way Google Ventures
operates at Google Inc.
In a tweet, he thanked
Costolo and said he was
LIrIIIed Lo sLurL IIs new
role and having Noto on
the team.
The surprise change
comes weeks after one of
Twitters top executives,
AII RowgIunI, ubrupLIy
stepped down as operat-
ing chief following a dis-
pute with Costolo over
LIe compuny`s IuLure. On
the same day, Twitters
longtime head of North
AmerIcun medIu, CIIoe
Sladden, announced her
departure, following her
boss ouL LIe door.
In recent months, Twit-
ter has also recruited a
new vice president of
product and replaced its
head of engineering.
Investors appear to
have viewed these moves
IuvourubIy, sendIng TwIL-
Ler`s sIures up o percenL
In LIe pusL monLI. BuL uL
$qz.o, LIe sLock Is sLIII
down q percenL LIIs yeur
und beIow TwILLer`s hrsL
LrudIng cIose oI $qq.qo on
November ; IusL yeur.
WSJ
Anthony Noto.
B
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/
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Microblogging ~~:,~
..,. Twitter ._ ,.-
.q. .._~: ...'.q:~ q .,.
~:. ~ e ~ e _ ., _ ., .~ .
....~_e.. ._.:..._..
q.q~..' q..._.....:.-
. .e_ . ~~ .:. , ~
Wall Street . ~.~~.e
,~ ,~ q .q .q ..: ~
..,.~..~. ~,~,.
~~ :.q...~_.._e ~.
..: ~q:q ~._.: .~. ~
.._....~._.
~.~ ,' ..q .~._
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, .~. . :. . ~ . . . ~ .~:
~:. ~.:. .. ~ _. ._e. _. .
. , . ._ q . .~. , .~ . . .
Twitter -. ~,.~.
..:..|.....:.~ ..~..
._~...._.
~.~ ,, ..q .~:._
Twitter - .e:-e:._.:~
q..._....q.~..- .~e
~__e..:.__e.._. e.
..,..: Twitter ~~~
_..q..._.....:.~ ..:
q ~ ...._ ~ . . ~.. _e. ._ .
T
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July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
Nam Sik Ahn (L), MD Samsung Myanmar and Zar Ni Win Htet (R), Head
of Hand Held Product Channel. Samsung Myanmar
Zar Ni Win Htet, Head of Hand Held Product Channel.
Samsung Myanmar
Models with Tab S at the event. Samsung Myanmar
Model with Tab S at the event. Samsung Myanmar Ni Ni Khin Zaw poses for a photo. Samsung Myanmar
Tab S lucky draw winner. Samsung Myanmar
Diramo answering questions from MITV. Telenor Myanmar Gitamate performing A cappella music to the audience. Telenor Myanmar
Nay Myo Htun answering questions from the media. Telenor Myanmar
Petter Furberg, CEO of Telenor Myanmar and Hanne Knudsen, Head of Com-
munications, Telenor Myanmar. Telenor Myanmar.
Telenor Myanmar
Tune Star Event
Launching Ceremony of Samsung Tab S
60
th
Anniversary of the
Announcement of the Five
Principles of Peaceful Coexistence
in Yangon
Photos by U Aung/Xinhua
Sailas Tangal (1st L), Charged Afaires of the Indian Embassy,
Chen Chen (2nd L), Charged Afaires of the Chinese Embassy,
Yangon Region Chief Minister U Myint Swe (2nd R) and U Tant
Kyaw, Deputy Minister for Foreign Afairs, cut the cake during
the commemoration ceremony of the 60th Anniversary of the An-
nouncement of the Five Principles of Peaceful Coexistence in Yan-
gon.
Chen Chen, Charged Afaires of the Chinese Embassy in Myanmar,
speaks during the commemoration ceremony organized by the For-
eign Ministry.
Myanmar Deputy Minister of Foreign Afairs U Tant Kyaw speaks
during the commemoration ceremony.
U Ko Ko Hlaing, chief political advisor to Myanmar president,
speaks to media during the commemoration ceremony.
Of cials and guests pose for a group photo during the commemo-
ration.
July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
31
July 10-16, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
Telenor Myanmar Launches Nationwide Tune Star Contest
Kyaw Min
T
elenor has announced
the launch of Telenor
Myanmar Tune Star, a
nuLIonwIde conLesL Lo hnd My-
unmur`s hrsL mobIIe musIc sLur,
inviting all aspiring musical
talent across Myanmar to tap
into their inner creativity and
compose an original melody.
TIe wInnIng meIody wIII be
used to create an exclusive
audio identity for Telenor, the
hrm suId.
TIe cIosen Lune wIII uIso be
part of promotional TV and
rudIo cumpuIgns, und wIII be
IeuLured wIerever LIe cusLom-
ers encounter Telenor, such as
IoIdIng musIc Ior LIe cuII cen-
tre and in automated messages.
Contestants will also compete
for an opportunity to work with
some oI Myunmur`s ceIebruLed
musicians and the chance to
take home one of three major
cash prizes as well as lucky
Coca-Cola to Host Party to Celebrate Culmination of the World Cup
Kyaw Min
T
o add to the excitement
uround LIe hnuI muLcI oI
the worlds most popular
IooLbuII LournumenL, Cocu-CoIu
Myanmar will host a party in
Yangon on July 13 in front of
Dagon Center II from 1pm to
5pm.
TIe purLy, wIIcI wIII be non-
ticketed and open to everyone, is
beIng IeId us purL oI Cocu-CoIu`s
ceIebruLIons oI LIe zo1q A
WorId Cup und u IoIIow-up Lo
LIe brund`s ucLIvILIes over LIe
past month which have engaged
LIousunds oI peopIe In Myun-
mur, LIe beveruge muker suId.
Revellers will get to enjoy
un ucLIon-pucked uILernoon uL
LIe purLy. TIere wIII be musIc
perIormunces by EuInL CIIL und
MI Sundy, IooLbuII gumes und
contests as well as opportunities
Ior peopIe Lo wIn excIusIve Cocu-
CoIu A WorId Cup prIzes
uILer perIormIng LIeIr besL ren-
dILIon oI LIe Cocu-CoIu Brrrr
us seen In LIe Cocu-CoIu Brrrr
television commercial.
In addition to having the
opportunity to sample free
Cocu-CoIu, uLLendees wIII uIso
be LreuLed Lo u LusLe oI BruzII-
ian culture at the event, linking
Lo BruzII`s IosLIng oI LIe zo1q
A WorId Cup, wILI u dunce
perIormunce by u CupoeIru
Dunce Group und sumbu musIc
pIuyed In beLween LIe vurIous
activities.
In addition, the Hyrax Dance
Crew who featured in the music
video of the Myanmar version
oI TIe WorId Is Ours, LIe Co-
cu-CoIu song Ior LIe zo1q A
World Cup, will also perform.
The song, which was released
earlier this year, features vocals
Irom gIobuI brund umbussudor
and international recording
artist David Correy as well as
Myunmur brund umbussudors
SuI SuI KIum eng und Bobby
Soxer.
Cocu-CoIu wIII conLInue Lo en-
gage people in Myanmar with
afternoon visits to hundreds of
teashops daily across Yangon
and Mandalay till July 11 to
create excitement among the
peopIe oI Myunmur ubouL LIe
A WorId Cup wILI gumes
und excIusIve prIzes Lo be won,
the company said.
Cocu-CoIu`s hrsL nuLIon-
wIde InsLunL-wIn Under TIe
Cap promotion as part of its
A WorId Cup cumpuIgn In
Myanmar will also go on until
SepLember o.
TIe Cocu-CoIu Compuny Ius
been un om cIuI sponsor oI LIe
A WorId Cup sInce 1q;8,
und Is u Iong-LIme supporLer oI
IooLbuII uL uII IeveIs.
draw rewards.
In addition to providing
mobIIe communIcuLIons prod-
ucts and services, Telenor will
oer ILs Myunmur cusLomers u
vurIeLy oI vuIue-udded ser-
vices that meet their needs and
preferences, details of which
wIII be unnounced cIoser Lo LIe
network launch date, Telenor
said.
Ko Nuy Myo HLun, spokes-
person Ior LIe TeIenor Myun-
mar Tune Star contest, said:
We ure very excILed Lo IuuncI
LIe hrsL mobIIe musIc conLesL
In Myunmur. MusIc cun be very
personal and leave a lasting
impression, and we are eager
Lo see Iow IndIvIduuI expres-
sions of creativity, passion and
originality come through this
contest as well as the musical
sLurs LIuL wIII be creuLed.
TIIs Is un opporLunILy Ior
someone Lo become Myunmur`s
hrsL mobIIe musIc sLur und Lo
have their tune heard across
LIe counLry, Ie suId.
PeLLer urberg, CEO oI TeI-
enor Myunmur, suId: We wunL
the people of Myanmar enjoy
LIe opporLunILIes LIuL connec-
LIvILy brIngs, sucI us upps und
music, and look forward to the
dIgILuI IuLure LIuL IIes uIeud,
uddIng LIuL TeIenor wIII brIng
InnovuLIve und uordubIe
mobIIe communIcuLIons prod-
ucts and services to Myanmar
later this year.
There are several ways to join
the Telenor Myanmar Tune
Star contest. Participants can
submIL LIeIr orIgInuI meIody
Lynn Lynn performs for the audience.
digitally via Telenor Myanmars
ucebook Puge, record or Iund
over their ring tune on a CD or
USB drIve uL uny oI LIe drop-
o poInLs IocuLed In Yungon,
MunduIuy, Bugo, Mugwe und
Mawlamyine, or record at one
oI LIe recordIng booLIs und
sLudIos ucross LIe hve Lowns.
Consumers ucross LIe coun-
try are invited to cast their
voLes vIu SMS, ucebook or LIe
Telenor Myanmar Tune Star
conLesL websILe, und uILImuLeIy
be purL oI poLenLIuIIy IuuncIIng
LIe cureer oI Myunmur`s hrsL
mobIIe musIc sLur.
DeudIIne Ior enLry submIs-
sIons Is JuIy z, wIIIe pubIIc
voLIng perIod Is Irom AugusL
1z-1q. TIe wInners wIII be un-
nounced on AugusL zz.
TIe hrsL prIze Is K1o mIIIIon
($1o,ooo), wIIIe hrsL runner-
up geLs Kz mIIIIon und second
runner-up Kz mIIIIon. TIere
ure uIso 1oo Iucky druws wILI
prIzes vuIued uL K1oo,ooo
($1oo).
Composers Khin Myat Mon
and Deramo, and writer and
vocalist Lynn Lynn will act as
judges for the competition.
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