You are on page 1of 32

June 5-11, 2014

Myanmar Business Today June 5-11, 2014| Vol 2, Issue 22 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Contd. P 11...(Cov't ReIorms)
Inside MBT
Govt Reforms Myanmar
Investment Commission
Wai Linn Kyaw
he Myanmar In-
vestment Com-
mission (MIC) has
appointed the countrys
energy minister as its new
chairman and added a
vice chairman position in
addition to boosting the
total number of members
Irom 11 Lo 1.
TIe sIum e comes In
un eorL Lo IucIIILuLe LIe
rising number of MIC
permit applications for
foreign investment in
Myanmar, a source with
close knowledge of the
matter told Myanmar
Business Today.
The Commission was re-
established with Minister
for Energy U Zayar Aung
as chairman, replacing U
Win Shein, minister for
Minister for Hotels and
Tourism U Htay Aung
was appointed as the vice
Chairman of MIC, while
other members include
Deputy Minister for Fi-
nance Dr Maung Maung
Thein and Deputy Minis-
ter for National Planning
and Economic Develop-
ment Daw Lei Lei Thein.
The secretary position
wIII be hIIed by LIe DIrec-
tor General of the Direc-
torate of Investment and
Company Administration
U Aung Naing Oo.
So far during this year,
MIC has permitted near-
Iy o projecLs Irom IocuI
entrepreneurs, while 60
from foreigner investors
were given the go-ahead.
E-Visa to Be Introduced by
This Yeur: Om ciul
Htun Htun Minn
he Department of
Immigration and
Population (DIP)
under the Immigration
Ministry by this year will
hnuIIy ImpIemenL un E-
Visa system which was
initiated in 2011, a top of-
hcIuI suId.
The system will enable
a visa applicant to receive
Myanmar visa within
three days of submitting
application, thus saving
time and costs, U Maung
Maung Than, Director of
DIP said.
This will not only bene-
hL IoreIgn busInesspeopIe
but also tourists, he said.
The director said the
technical aspect of the
projecL Ius been hnuIIsed
while the service aspect
is yet to be taken care of
We can start our ser-
vice before the end of this
year, U Maung Maung
Than said.
E-Visa will be available
for the countries that do
not have a Myanmar Em-
bassy and for applicants
who live far from a My-
anmar consulate. Appli-
cants will get online noti-
hcuLIons once LIey geL LIe
visa, according to the DIP.
The Ministry of Hotel
and Tourism, Myanmar
Posts and Telecommu-
nications (MPT) and the
DIP are collaborating to
implement the E-Visa
Currently, foreign ap-
plicants from countries
where there are no My-
anmar consulates have
to wait for about a week
to get their applications
approved, while visa fees
uIso vury In dIerenL ju-
Many countries have
boosted their tourism
sector by introducing this
kind of system. It is tak-
ing us a long time to im-
plement the system, but
once launched it will help
us double tourist arriv-
als very soon, U Naung
Naung Han, secretary of
Myanmar Tourism Fed-
eration, told Myanmar
Business Today.
Myanmar has set a tar-
geL oI uLLrucLIng mIIIIon
tourists in 2015, a near-
LrIpIe oI LIe zo1z hgure,
Minister for Tourism U
Htay Aung said earlier.
Tourist arrivals in My-
anmar hit 1 million for
LIe hrsL LIme In zo1z, un
increase of 200,000 com-
pared with 2011, amid
drastic reforms under-
taken by the semi-civilian
government that came to
power three year ago.
Myanmar Says to Grant For-
eign Banks Licences by End-
SepL P-
Getting A Reasonable Lunch:
Yangons Western Restaurant
Scene P-9
Yoma Boosts Myanmar Telco
Tower Stake to 25pc P-27
_.,.:,~ ~~~ ...~
.~..:q~.._ E-Visa
.,.~:. e...~~. ~_..
.~ ~.~: ~_ .e: ._ _e.
._~: . . ~ . _~ ._~. .q..
_._.~~:...._:,. .q
~. .|.,. ._ . , .. :..q:
.. ..q~~~. -~:qq
.__e._ ~.,~,.~.:..
._ ~_. ~ , ~.q ~ .| .~ .:
..._ ~~ ~ . _.:..:.. .
,.q.:..:.~ ~.:._
.q..:..:..| ..~.q:~.:
..._ _e. ._~: . . ~ . _~ ._~.
.q.. _._.~~:...._:,
. .q._.
,_ ..,. . ..~ ~.~:
.~: .~: ~. ._ ..,_ . . ~,
..:.~..~ e.e..
.~:. ~,.~:~e. ...
.~,..~: ~,..:.....
.:.|''e .~._~._~..q..
_._ . ~ ~:. .. ._:,. , _~:.
.q.. . ...: ..: ., .~ ._.:
. q, e ~e . .q .. :..:.q.
~,_~._:, _.,.:.~.e.q.
. . , .. . ~ . _~ ._~. .q..
~. ....|.~: ..:q~.,
_.._e.._. .~q _.,.:.
. .:.q:~._ ._.:..:.
.:. _._~.-~:..:~:.
q:~ ..:~:.._.,.
.~ _ ~. .~ ~ ~ ..: . .
.,q_.. ~,..:..:. .
~. ~ ~ _.:._.:.,:.. q ._~: .
.~~:.: ..,.._~:
.q .. :.~_~. . . . e _ e .
~.~~~: ~q....:~e.
~. . .q .. :..~ ~ - ~:..:
.,~:, ~ ~. , .~: .~: ~ ,
~e. e-visa .: ..:~:.
. qq .q .. :.. . ., ..|...:~
~.q:~.:.~e''e _.,.:
. .q .. :.. . , .q .:.~. .
. ~~ ..q.. . ..,: .,:
e, ~ ._.:._.
~_. e-visa.,. ._ _., .:
. , ..q ._ , .:. . ,._e.~.
.__. .:.._._.-_._.:.
._ . ~ , . . . . e ~ . :
..:~:.,._ _e. ._.
June 5-11, 2014
Myanmar Business Today
Board of Editors
Editor-in-Chief - Sherpa Hossainy
Email -
Ph - 09 42 110 8150
Editor-in-Charge - Wai Linn Kyaw
Email -
Ph - 09 40 157 9090
Reporters & Contributors
Htun Htun Minn, May Soe San, Phyu Thit Lwin, Kyaw Min,
Aye Myat, David Mayes, Wai Linn Kyaw,
Aung Phyo, Sherpa Hossainy, Jonathan Harvey
Art & Design
Zarni Min Naing (Circle)
Email -
Ph - 09 7310 5793
Ko Naing
Email -
Ph - 09 730 38114
May Su Hlaing
Wai Linn Kyaw, Phyu Maung,
Bone Pyae Sone
Seint Seint Aye, Moe Hsann Pann, Htet Wai Yan, Zin Wai Oo
Advertising Hotline - 09 420 237 625, 09 4211 567 05,
09 31 450 345
Email -
Managing Director
Prasert Lekavanichkajorn
U Myo Oo (04622)
No. 1A-3, Myintha 11
South Okkalapa Township, Yangon.
Tel: 951-850 0763,
Fax: 951-8603288 ext: 007
Shwe Naing Ngan Printing (04193)
Subscription & Circulation
Aung Khin Sint -
09 20 435 59
Nilar Myint -
09 4210 855 11
Khaing Zaw Hnin -
09 4211 30133
Business News in Brief
Chi na washes i ts hands of i llegal Chi nese i n
The Chinese government will not be responsible for
and will not provide any assistance to Chinese citizens
who have illegally entered Myanmar to work at gold
and other metal mines in Mandalay Division, local me-
dia reported Mandalay-based Chinese Consul General
Wang Yu as saying. Myanmar can take action against
illegal Chinese migrant workers in accordance with its
laws since China is taking strong action against illegal
foreigners in China, Wang Yu said.
Thanlwi n hydr opower pr oj ect gets gr een si g-
The Myanmar Minister of Electric Power has grant-
ed approval to local company Asia World and Chinas
Hanergy Group Holding Ltd to develop a 1,400MW hy-
dropower plant along the Thanlwin River, local media
reported. The Upper Thanlwin (also seen as "Kunlong")
hydroelectric project would be a joint venture allowing
the companies to operate the plant for up to 40 years
under a build-operate-transfer plan, with all but about
10 percent of its output being sold to China. The Han-
ergy Group reportedly signed a memorandum of agree-
ment for the Upper Thanlwin projects development
with the Myanmar government in 2010.
New town plans to be dr awn for 56
Following instructions from President Thein Sein,
new town plans will be drawn for 56 cities across the
country with assistance from international organisa-
tions, local media reported Director Aye Aye Myint
of Construction Ministry as saying. Priority would be
given to cities with more than 100,000 population, Aye
Aye Myint said.
FDI fr om tur moi l-hi t r egi onal countr i es may
move to Myanmar
Foreign Direct I nvestment projects from some re-
gional countries, which are experiencing political tur-
moil, are likely to move into Myanmar, leading local
businesspeople told local media. Lured by EUs restora-
tion of GSP (Generalised System of Preferences) trad-
ing privileges on Myanmar, a number of garment facto-
ries have already moved to Myanmar, Chairman Myat
Thin Aung of Hlaingtharyar Special I ndustrial Estate,
western outskirts of Yangon, was quoted as saying.
Govt sells K2.1 tr i lli on i n tr easur y notes
The government has sold more than K2.1 trillion
($2.17 billion) worth of treasury notes as of February,
according to the Ministry of National Planning and
Economic Development. The Central Bank of Myanmar
(CBM) sold K559 billion worth of three-year treasury
noLes und K1.6 LrIIIIon worLI oI hve-yeur Lreusury noLes
beLween AprII zo1 Lo ebruury. TIe InLeresL ruLe Ior
three-year term is 9 percent and the interest rate for
hve-yeur Lerm Is q. percenL, uccordIng Lo LIe CenLruI
Bank of Myanmar.
Compani es fr om 11 countr i es to i nvest i n Thi l-
awa SEZ
A total of 45 foreign companies from 11countries in-
cIudIng one Irom LIe UnILed SLuLes Iuve senL conhrmu-
tion letters to invest at the Thilawa Special Economic
Zone on the outskirts of commercial city Yangon, local
media reported citing Chairman Set Aung of the Thila-
wa SEZ Management Committee. Most of the interest-
ed companies are from J apan, Hong Kong, Singapore,
Thailand and Malaysia while the only company from
EU Is Irom Sweden. TIe hrsL pIuse oI LIe SEZ Is beIng
deveIoped on q6 ucres ouL oI z,qz ucres uIIocuLed Ior
the entire project.
EU pr omotes poli ce-publi c r elati ons
The Myanmar Police Force (MPF) in cooperation with
European Union will promote the relations between po-
lice force and public in Myanmar, the EU said in a state-
ment. The MPF recently held an Open Day, which was
organised at the initiative of the Community Policing
project funded by the EU. The project has also provided
LruInIng Lo MP om cers In u LruIn-LIe-LruIner IormuL
in order to roll out community policing to more areas
across the country. The police reform project includes
community policing, crowd management, improving
accountability and enhancing the role of civil society
and the media. The project will be completed in March
2015, the EU said.
Myanmar Summary
.....~...._~.~~.. .q.~_.:..~.:.~..e:q,
~q:..~~.q:~.:_~..: ~,~..:..:.~:. ._._
~~ ~_ . ...._ .e ~ ._~: .. ~:~, e . ..... e .. ...
~._..~ ~,~.~:..~, General Wang You ~ ._.:_~:.
.._. _.,.:.~.,_e ~,~..~q:..~ ~.q:~.:
..:~....:..:.~ ....~_~.q.e._.. ~,~e~.
._. ,.~.~. ~q:..~~.q:~.:..:.~ ~.q.e
.:.._e ,.~ ._.:_~:..._.
.. ~ .. , .. , -.. . , .~ ~q q, ~ , ~ ._.,e ' _. ,e ~
. ~~:~e ~._ ..:.-~~ ~_ _e ~. _. ~ . .:._.. .
. :.._ e ..:~ . . .q.~, _~ ., .. , _~:..q.. . ..'.~..~._.
~ ._.:_~:..._. e...~,.._ ...q~..,..~:q..:
_.,e.:.~ ..:......:q~.:.._e .q._.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Contd. P 11...(Rice Lxports)
Myanmar Says to Grant Foreign Banks Licences by End-Sept
yanmar will grant for-
eign banks limited op-
erating licences by the
third quarter of this year, in a
bid by the countrys semi-civil-
ian government to attract for-
eign investment into an econo-
my just emerging from decades
of military rule.
An om cIuI documenL senL Lo
more LIun o IoreIgn bunks wILI
represenLuLIve om ces In Myun-
mar, and seen by Reuters, shows
that as many as 10 foreign banks
will be allowed to set up one
branch each to provide restricted
services, including granting loans
to foreign corporates.
Jared Ferrie Lending to local companies
will require the foreign banks
to cooperate with local institu-
tions, the document shows.
Foreign banks with repre-
senLuLIve om ces In Myunmur
include Standard Chartered,
Thailands Siam Commercial
Bank , Singapores Oversea-
Chinese Banking Corp., the
Australia and New Zealand
Banking Group, the Korea Ex-
change Bank, and J apans Su-
mitomo Mitsui Banking Group.
Licensees are expected to
contribute to the development
of the domestic banking sector,
notably but not exclusively by
participating in the interbank
market, by lending to domestic
bunks Lo supporL LIeIr hnunc-
ing activities of domestic corpo-
rates, the document added.
A licensing panel will review
applications by J uly 6 and award
hve Lo 1o IIcences by LIe end oI
September, the document says.
ConsuILIng hrm RoIund Berger
will oversee the process.
Based on a recommendation
from the World Bank, a mini-
mum paid-in capital of $75 mil-
lion will be required by selected
foreign banks, the document
Domesti c concer ns
Myanmars banking sector
was crippled by decades of mis-
management under military
regImes und cuL o Irom mucI
of the global economy due to
Western sanctions.
The European Union, Aus-
tralia and other countries have
lifted sanctions in response to
widespread political and eco-
nomic reforms initiated by the
reformist, semi-civilian govern-
ment that took over from a mili-
tary junta in March 2011.
A senIor governmenL om cIuI,
who declined to be named due
to the sensitivity of the subject,
said foreign banks would help
spur economic development as
well as modernise the domestic
banking system.
L`s dehnILeIy goIng Lo requIre
foreign banks to give capacity
building to local banks, the of-
hcIuI suId.
The tender has triggered con-
cerns among domestic banks
and lawmakers, who say the
domesLIc hnuncIuI secLor Is Loo
immature to deal with foreign
TIe governmenL om cIuI suId
a strong parliamentary com-
mittee had already said it was
opposed to allowing foreign
banks to operate in Myanmar,
but added that the process was
unlikely to be derailed.
Local banks are not to be
marginalised, he said.
Last year, a group of parlia-
mentarians tried unsuccessfully
to intervene at the last moment
to prevent telecommunication
licences from being awarded to
Norways Telenor and Qatars
ThaiIand`s Siam CommerciaI Bank`s (SCB) representative ofce on Kabar Aye Pagoda road in Yangon. Some foreign banks may
be allowed to operate in Myanmar later this year although initially they will only be allowed to have branches in certain areas
and offer a limited range of products, government and banking sources told Reuters.

Rice Exports Up 26
Percent in April
yanmar earned $10.74
million from export-
ing 27,692 tonnes of
rIce In AprII In zo1q-1 hscuI
year, up 26 percent compared
to the same period a year ear-
lier, Ministry of Commerce data
During the period, 5,070
tonnes of rice were exported
through overseas routes, fetch-
ing $1.86 million, while over-
land (border) trade of 22,622
tonnes garnered $8.88 million.
n AprII zo1-1q Y, 8,6q
tonnes of rice were exported
through overseas routes earn-
Ing $.11 mIIIIon, und border
trade bagged $5.40 million
May Soe San from 12,182 tonnes.
Myanmars rice exports most-
ly take place overland with Chi-
na and Thailand, however the
government has been empha-
sising on increasing overseas
exports, which essentially com-
prise exporting high-grade and
value-added rice.
Muse border trade station
with China sees about 45,000
to 50,000 bags traded every
day, with local varities like Nwe
The Htet and Nga Seing being
the most popular, traders say.
Recently, there has been
strong demand for rice from
Chinas Yunan province as ex-
ports from Vietnam dwindled,
Myanmar's rice export in ApriI 2U14-15 FY jumped 2 percent than a year earIier.
_.,.:~.,_e ~.:.. ...
....:. e... ~~e...
.~ ~~ . .:....._ _e. ~: ~. .q
~.,_e ._.:.q..._.....:.~:.
...:.q, ..:.,.:.._~:.
~q:. ~ .:q ~ .:~. . . :. ~:.
_.,.:.~ ~e.:..e,.e..
:.._ ._.:.~ ,~ ~:. ....
_.._e.~: Reuters ~.,_e _..~_..
_e.._~:.. ._.:.~ ~~ . .,
~.,_e .~.~:.._ ._.:.
....|...:q~..:.~:. ....
~ ..._. .~ . ..: . . , ..:.~:.
.. ..: . ._ _e. ._~: . . q._ .
_._~.~.~.:.~:. ....~
..._. .. .~ .~ _. . . _.:.~ .:.
~.,_e _._~.~e~._..:..
. ...| ...: q ~ q, . ~. ._~: .
~..|~_.,.~~q .q._.
_., .:. ~ ~ e .:.. e , .e . .
:.._ . _.:.~ .:.~ Standard
Chartered .~:.- Oversea-
Chinese Banking Corp ..-
Siam Commercial Bank
_..._~... ,e.~.,~~..
Korea Exchange Bank . .,.
Sumitomo Mitsui Banking Group
~.|~._~:. .q._.
...:.....q.. ..:~.:
.:.~:. ~. ' q~~ ...:._
_e. _. . .~ ~ :.~~ , ~ . .
.. ~~ . .:.....__e.._~:.
~..| ~_.,.~~q .q._.
Roland Berger ~_~...~.~.
~. .|. . , .~:._~ ._~. ._ _e. ._ .
~.:~- ~_~_..~~:. ~._..
~: ~,_... .q..: ~..q~,
..'.: .,.q_.. .q..e.q._
._.:.~~.,_e _..q.__e.
._~: . ~. .| ~ _., .~ ~q. q._ .
.q:... _..._~... ~_.:.
. . :.~.,_ e . ~ . . . :.~:.
~~~ .~.~ ~:~:qe.._
~. .q.. -. .q.. . .. :..q.
_._. ._.: .. . .:.~..' ~ _., ..:
~:._e ._e..:....._.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
Heliocentris Grabs Additional Multimillion
Dollar Myanmar Order
New order worth $2.7-4 million; covers turnkey power solutions for 75 new base stations
erman power solutions
provider Heliocentris
Energy Solutions AG
said it has received an addition-
al order in Myanmar following
its multimillion-dollar April
deal, which was the largest sin-
gle purchase order in the com-
panys history.
TIe order wIII be worLI Cz-
million ($2.72-4.08 million) in
revenues depending on exact
sILe conhguruLIon, HeIIocenLrIs
said, adding that the order will
be sIIpped over In LIe nexL -q
TIe hrm, wIIcI provIdes ser-
vIces Ior energy emcIency und
distributed power systems,
announced that it grabbed an
order to deliver and install 75
turnkey power solutions for the
rollout of the new mobile net-
work in Myanmar.
With this order, the 2014 or-
der book of Heliocentris has
reached 9.2 million ($12.51
million), almost double the
amount it recorded as full year
suIes In zo1, LIe compuny suId.
The power solutions comprise
Heliocentris proprietary En-
ergy Manager System and also
include diesel generators, bat-
teries, power electronics, cabi-
nets and peripheral material
from other power components
Ayad Abul-Ella, CEO of Helio-
centris, said: Orders received
from Myanmar now total over
5 million, which is particularly
encouraging as the rollout of
the mobile telecom infrastruc-
ture in this country has only
just begun.
Telenor and Ooredoo, the
two principal operators in My-
Phyu Thit Lwin
anmar, plan to erect around
18,000 mobile base stations in
the next three years, of which
about one fourth in 2014.
The opportunity is therefore
huge for Heliocentris to achieve
substantial double-digit million
revenues in Myanmar over the
nexL z- yeurs, Ayud suId.
With our recent order wins
the company is now also well
on track to achieve full year
revenues of over 20 million in
2014 as planned.
Ayad said the follow-on order
In Myunmur vuIIduLes LIe hrm`s
standing with existing custom-
ers and was already evidenced
by repeat-purchases by du in
UAE and mcell in Mozambique.
Myanmar is one of the few
remaining telecommunications
frontiers, with only 10 percent
of its 60 million people holding
a mobile-phone subscription,
according to industry estimates.
That compares to penetration
rates of 70 percent in Cambo-
dia, 90 percent in Laos and over
100 percent in Thailand.
AccordIng Lo omcIuI sLuLe-
ments, the Myanmar govern-
ment plans to increase the per-
centage of
phone owners to 80 percent
by 2016.
I n order to achieve this ambi-
tious goal, new mobile licences
were awarded to Telenor from
Norway and Qatar Telecom in
J une of last year. Both opera-
tors will have to meet popula-
tion and geographical coverage
targets to ensure that the coun-
trys large rural population is
:., .. .. ~ . . .q. Heliocentris
Energy Solutions AG ._ _.,.:
. . -_. .~~ .. :e . ._ ..'.:
.,..._ ~.:.:~_. ...:e.
.:.q.._~:. .q._.
~..|~.:.:._ e, ... ,
.,. ~..q~,..'.: ...
. , ... ~ .,., ~ q._.. ..
~ ~ ..:~~..'~ . ~_ ._~: .
Heliocentris ._.:_~:.._.. ~.~
~.,_e ~. .|~ , .. _ ..:.~:. .:
._ . .....~~ . ..: _e ....
_., _._ _. . . .~ . .. .. _e, _e..q.
.,. .:.~:. ~, ..: ....,._ ~. .|
~.~. ,.~~.,_e _.,.:.-
.~ . e .q.~ , q~ .. ~ .. q, ~~ ~
.....:~~:....~,..:. .
~:. . . ..: q, ~. :.:.~ . _. ._e.
._~:.._. ._~_:.._.
Myanmars April
Trude ecit ut
yanmars total exports
in April amounted to
$qz. mIIIIon wIIIe
total imports during the month
came up to $1.18 billion, show-
Ing u dehcIL oI $6.qq mIIIIon,
omcIuI duLu reIeused by LIe
Central Statistical Organisation
(CSO) shows.
During the period, foreign
trade totalled $1.72 billion, ac-
cording to CSO data.
Of the total export, overseas
Lrude uccounLed Ior $qq.z1
million dollars while border
trade made up $108.14 million.
Of the total import, overseas
trade accounted for $1.04 bil-
lion and border trade made up
$16.66 mIIIIon.
n LIe hscuI yeur zo1-1q,
foreign trade totalled $24.96
billion, with export amounting
to $11.20 billion and import
sLundIng uL $1.;6 bIIIIon.
Kyaw Min
_.,.:.- -_..~~. .~,
~ . . . . ..| .._ ~..q ~, ..'.:
, ... , .,.qq._.. ..~,
~ . ... : ~..q ~, ..'.: ~ ...
~ .e. .q:~q.~: ~..q
~,..'.: ',, ... .,.
. . _..~ q ._~: . Central Statistical
Organisation (CSO) . ~_.,.
._ ~..q.:q..:.~q .q._.
~. .|~:.~~ . . _.:.~ , . e
. .: ~..q~,..'.: ~ ...
.eq.._~:.._. ~..|.:q.
~q .q._.
. ~ , . . ..| .~ . .e .q._~: .
~,.e.. ~..q~,..'.: ,,,
... ~ .,. ~,e.q._.. ,e..~,
... ~, .,.q.._~:. .q._.
A turnkey power system for ceIIuIar towers.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
UPP Gets MIC Nod on
$46-m Power Plant
Incorporates Myanmar power subsidiary for its new
gas power plant project in Yangon (Ywama)
ingapore-listed conglomerate UPP Holdings Ltd
suId LIe Myunmur governmenL Ius Issued cerLIh-
cuLe oI IncorporuLIon und LIe hnuI Iorm oI permIL
to its power generation subsidiary to carry on a power
plant project in the energy-starved Southeast Asian
TIe new hrm, UPP Power (Myunmur) Ld, wIII see
an investment of $46.511million, approved by the My-
anmar I nvestment Commission (MI C), UPP said in a
sLock excIunge hIIng.
The company and UPP Greentech Pte Ltd, a wholly
owned subsidiary of UPP, have invested the total sum,
comprising: initial capital injection of $75,000; addi-
tional capital injection of $46,000; and aggregate con-
sIderuLIon oI $q6.q mIIIIon.
UPP holds 1percent stake in the company while UPP
Greentech holds the rest.
I n August last year, UPP signed a turnkey agreement
with Myanmar-based MSP Tractors Pte Ltd and Myan
Shwe Pyi Tractors Ltd to build the power plant.
UPP started looking into potential businesses in My-
anmar since 2012 in a bid to diversify its portfolio into
LIe heIds oI consLrucLIon und InIrusLrucLure projecLs In
Aung Phyo
.~:.~._..~ UPP ~e~._._~ .._ _., .:~. .q-. . .~
.:~ . . ~. ~. ~ ~.q .~: ~:q -. . .~ q:..|...:..:.
~.:~~:.....~ , ..:~ . . q, ~. ..~ . _.. , ..:~_
..:.. ~ ~_.,.._~:. .q._.
_.,.:q..._.....~:.q (MIC)-._..~_e UPP Power
_.,.:, ..~~._ ~..q~,..'.: ,' ... ~~ .,.~
q..._....__e. ._~:. . q._ .
Myanmar Seeks to Establish Direct Air Links with Europe
he government is discuss-
ing with some European
countries to sign aviation
agreements which will pave the
way to establish direct air con-
nections between Europe and the
Htun Htun Minn recently-opened Southeast Asian
nation, a Directorate of Civil Avi-
uLIon (DCA) om cIuI suId.
Now we are discussing with
Netherlands and France. Then
we will continue to discuss with
other countries, U Nay Win,
Director of the DCA told Myan-
mar Business Today.
DCA will strive to improve
aviation safety, airport security
and other related services to
push those agreements.
Currently, there are no local
direct air links between Myan-
mar and any European country.
However, Myanmar has direct
air links with China, J apan,
South Korea, Thailand, Bangla-
desh and I ndia, among others.
The Philippines also struck a
direct air link agreement with
Myanmar last month.
Myanmars aviation industry
will develop once the depart-
ment signs the agreements.
Local airlines will be able to
expand their market and the
number of airlines will also
increase, Daw Aye Mra Tha,
spokesperson of the state-run
carrier Myanmar Airways I n-
ternational (MAI ) said.
Currently, there are 24 foreign
airlines operating in Myanmar
and most of them are operating
from Thailand, Singapore and
Foreign tourist arrival has
jumped recently amid reforms
and the three international air-
porLs In LIe counLry - In Yun-
gon, Mandalay and Nay Pyi Taw
- Iuve been suerIng Irom over
The government recently se-
lected a foreign consortium to
build a $12-billion new inter-
national airport in Bago region,
about 70 kilometres from Yan-
The Bepartment of CiviI Aviation is trying to strike air deaIs with European countries to boost tourist arrivaIs in Myanmar.

_.,.:..._~:....:. .q:.
..:. ~~,~..,.._...,q,
..._~: ...:~ .:.. .. . .~:
,_~:....._:,. .q ._.
..:~ .:.. .. . _. ..|~..
._~: .. q:. _. .q. ..._~: .. ., .
.q. ..~.q:e~.q..q.. ..
e: ..'~ ~.:.~..:~ .:. .q: ..
.q..._ q.. .:.~ .~~ ._.: ..
. :.._ _e. ._~: . ..._~: .. ..:
.q.,_~:....._:,. .q._.
~. ,e .:., _. .. ~ , .. ... .
.,~e. _..q ~_.:...~, .~
_ . . .. . .. . . :. .e ..:. . . :
..e: ~..,~ e.._~...,.
q.e ~_~.~.q~~~~.|.~~
.| _ . . . . . . :. .e ' ' e
..._~:....:.q. ,_~:.....
_:,. ,_~:..q.....,~.~ ._.:
.:.._ .q:...:. ~~
,~..,...q... ~:q..:.
~ .:._ ... .,. ~q ..:._ ~:
e.~.| .q:..._....qq
q, .......,q_.._e.._~:. .q
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
From page j...(Reasonable)
From page j...(Reasonable)
Trio Sign $3-m Public Private Partnership Agreement
he United States Agency
for I nternational Devel-
opment (USAI D), Chev-
ron/ UNOCAL Myanmar and
Pact Myanmar have signed a
$-mIIIIon PubIIc PrIvuLe PurL-
nership (PPP) agreement to im-
plement a development project
in Myanmar.
The three-year project is the
second phase of a program
known as SHI NE (Sustainable
Health and Empowerment),
and is the latest in a 10-year
partnership between Washing-
ton-based NGO Pact and Chev-
ron/ UNOCAL.
Pacts Country Director Rich-
ard Harrison said the agree-
ment marks a major step
forward in a new model of de-
velopment, where the common
goal is integrated community
He said aid organisations
now have the opportunity and
responsibility in Myanmar to
do deveIopmenL dIerenLIy
LIrougI eecLIve purLnersIIps
to better address the govern-
ments highest priorities and
reInIorce benehLs oI LIe currenL
reform process.
We see this as a potential
paradigm shift based on lessons
Ieurned In LIe pusL - we see LIIs
as part of a deliberate and stra-
tegic shift in Myanmar where
private sector and civil society
May Soe San links no longer lag behind the
links between donors and civil
society, Harrison said.
The new project aims to im-
prove the lives of 160,000
peopIe In 1o vIIIuges In LIree
townships in central Myanmar
between 2014 and 2017, Pact
Mariano Vela, president of
Chevron/ UNOCAL Myanmar,
said: As a long-term private
sector investor in Myanmar,
we see ourselves as part of the
solution for Myanmars future
development, and it is our hope
that projects such as this help
people to make their own eco-
nomic choices.
Over 10 years of support-
ing Pact in Myanmar, we have
directly improved the lives of
902,405 individual Myanmar
citizens in 181,000 households
In uImosL 1,oo vIIIuges In 1
townships, he added.
The program will focus on
womens economic empower-
ment through the establishment
of Village Health and Develop-
ment Funds (VHDFs), which
will focus on maternal, new-
born and child health, tuber-
culosis, water and sanitation,
und hnuncIuI empowermenL oI
women in target communities.
One of the key outputs of the
SHI NE program will be to dou-
ble, to 80 percent, the propor-
tion of pregnant women in tar-
get villages that give birth with
skilled birth attendants.
United States Ambassador
Derek Mitchell said Public Pri-
vate Partnerships are an inte-
gral part of the United States
Government strategy for im-
proving development outcomes
worldwide, and supporting the
reform process in Myanmar.
Pact also implements a
$-mIIIIon, hve-yeur US Gov-
ernment-funded development
program called Shae Thot in
Myanmar. Besides USAI D and
Chevron, Pact also gets funding
from Coca-cola for its Myanmar
The SHINE project aims to improve the Iives of 1U,UUU peopIe in 31U viIIages in three townships in centraI Myanmar be-
tween 2U14 and 2U17, Pact said.


~..q ~, _._ .: . -~_._ _._
.q:e_e..q. (USAID) Chevron/
UNOCAL Myanmar . Pact
Myanmar ~~.,_e ~..q~,
..'.:. .., ...:~q . . ~ _._ .
....|...:q~.q. (PPP) ..:
~ _ .~ ~:. .~ . ~ .q. .~: _., .:
. ~ e _e ..q.. . ~ , ..:. . . ..:
.:..__e.._~:. .q._.
...._~:_...._ ~..|..~,.
._ SHINE (Sustainable Health
and Empowerment) -.~e~.~
_e._.. ~|q~,~._..~ NGO Pact
. Chevron/UNOCAL ~ - ~~ . .
~:. ...| ...: q ~ . -.,:~ . .. .
Pact - _.,.:..q: ,_~:.
.q... Richard Harrison . ~..|
..:~_.~._ e_e.......
~~ . . .q, ~~ ~ ~. ~._.. . .~. .
_e. _. . ~. ~q_ . , ..~ . : . ~._._.
_..,:.:. ._eq.. q, ~~ ~ _e.
._~:. ._.:_~:..._.
e. . . ~ , .~.. ~.,_e _., .:
. ~.e . ._. ,e . .. ~~ .q
.~.q: ,~~ . ...|. ~'~,~~~ -
~.:.~:. ~~, . ~~ ~~.
DFDL Discusses Tax Issues
with IR Omciuls
egIonuI IeguI und Lux udvIsory hrm DD recenLIy con-
ducted a knowledge-sharing session with high level of-
hcIuIs Irom LIe nLernuI Revenue DepurLmenL (RD) In
Nuy PyI Tuw, LIe hrm suId.
Central to the discussions were the tax issues faced by inter-
national clients in the current business environment in Myan-
mar, said DFDL Partner J ack Sheehan.
The session, held in collaboration with DFDLs alliance trans-
Ier prIcIng hrm QuunLeru GIobuI, wus uLLended by ubouL qo sen-
Ior Lux dIrecLors und LecInIcuI omcers oI LIe RD.
During the session, Sheehan, Tax Director Bernard Cobarru-
bias and Quantera Senior Partner Steven Carey shared experi-
ence wILI Myunmur`s IeudIng Lux omcIuIs on regIonuI und In-
ternational tax trends, double tax treaties and transfer pricing.
As international investors increasingly enter Myanmar, the
I RD there was particularly keen to hear those issues as well
as cases and practical examples from other tax jurisdictions,
Sheehan added.
DD muInLuIns omces In Myunmur`s commercIuI Iub Yun-
gon and the capital Nay Pyi Taw.
Aung Phyo
Myanmar Summary
should not assume it is impossi-
ble to eat out for under K5,000,
instead if you look carefully it is
possible to eat out all over Yan-
gon. And I m sure many readers
can name many restaurants I
have yet to encounter.
Although there is a surpris-
ingly wide range of good quality
restaurants in Yangon it is safe
to say the vast majority are rela-
tively expensive. Costs of opera-
tions are high in Yangon, land
rental is very expensive and
sourcing authenticate ingredi-
ents is problematic and pricy
- IucLs reecLed In LIe menu
prices. Additionally, many for-
eigners in Yangon are well paid
expatriate workers, with high
levels of disposable income.
This is dissimilar to neighbour-
ing Bangkok, which receives a
high number of lower income
tourists and subsequently has
a restaurant scene to facilitate.
Resultantly, as many restau-
rants cater to the higher end of
the economic spectrum there is
little necessity to charge cheap
prices, as demand will be high
TIIs reuIILy Is reecLIve oI u
city undergoing a time of tran-
sition and is likely to change
in recent years as more tour-
ists, expats and returning locals
trickle into the country. As one
of my interviewees working in a
high-end European restaurant,
who wanted to remain anony-
mous, told me, With the di-
chotomy in pricing and quality
between reasonable local and
Western food so vast, it seems
likely new restaurants will open
with Western menus and Bur-
mese prices.
With these restaurants lo-
cated in a society that places
such esteem on Western cul-
ture, it seems likely these es-
LubIIsImenLs wIII ourIsI - us
anyone whos been to the Pizza
Company or Manhattan Fish
MurkeL wouId LesLIIy - wILI us-
pirational Burmese making up
the majority of the customers.
For now however, there is still
much progress to be made.
Jonathan Harvey is currently
interning at Consult Myanmar
in Yangon. The views expressed
here are the authors own and
does not necesscril reject M-
anmar Business Todays edito-
rial policy.
...~ ..... ~. , . q:~_~ ...~.~ DFDL ~.,_e ._~:.~
_._ ~ .~. , .. ._:,. . ~, .~q:q_~..:..-e.~..~.......
~q.~:. .,_._.~:~ _....._~:. ~..|~ . ~ . ._.:_~:.. ._ .
.:..:._~ .~ .,q_. ._e. ._ .
~ ~ ~. ~~~.~:~ _e ~. e ~~
q. ._ ~ ~.,:~ ~ . ~.:.~.:.
.:.. :. ~. .|.... , .. qq . q, .:.. :
.~ . .~ q ._ .
. , ._~ ._. _. .._ ~q_ ~.. . .
..' .:.. :. ~_ .~ q ._ . _. .~: -
e ~e . . , .~ . . q, ~ , ~ ~.~: .
.:.q .|._ .
e. ..: ..|.._ q, ~ , ~ ~.,:~
~ .~.:.~.: ~. ~~.:.~.:.
..:~ .q: ~.|~~ , ~:. ~. ~~~
. q, ~ , _. ~ .:.. ._ .,q:~:.q :
.e .e: ~ q, _e. ._ .
.. ~..q ~, ~ ~.,_e q, ~ , -.:.
..:~ . . . . ~.:.~. . ._ .
e ~ ...
e. ..: ..|.~:..q.q, ~~ ~
q, ~ , _. q .:...:~ . ~ ., ~:.
. :..q:~ ~:q, ~ , _ . .,. _ .:.
.:..:. ~:. ..._., ._. ._e q, ~ , .,
~.:.~..:~ . :.~:.._ . . .
..: . ._~: . .. .:. q._ .
. . .~ . ._ ~.:.. ~_e .~ .~
. ~ ~.~ qq . .~ . ._ ~: .~:.
._.:_._~._ .
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
Myanmar Signs Environmental
Pact with South Korea
he Ministry of Environmental Conservation has
signed an environmental protection agreement
with the government of South Korea.
As Myanmar begins a phase of rapid economic devel-
opment, the impact on the environment and local ecosys-
tems grows due to pollution, deforestation and increasing
resource extraction.
By signing the environmental conservation contract,
we can exchange environmental information and techni-
cal experiences, said Nay Aye, director general of the De-
partment of Environmental Conservation and Forestry.
The two sides signed an agreement to carry out environ-
mental policies, prevent the degradation of bio-diversity
and climate change. The agreements also helps share in-
formation on how to control and supervise air pollution,
manage water quality control and underground water
supplies and conduct environmental research.
As Myanmar faces rapid economic development, they
face increasing environmental pollution. To reduce pollu-
tion, we need conservation programmes and sound envi-
ronmental policies. We want to share the good ways to re-
duce the environmental impact, said the chairman of the
Korea Environmental Industry & Technology Institute.
Aye Myat
Ooredoo to Launch Myanmar Services by September
oredoo wIII IuuncI G
mobile SIM cards in My-
anmar sometime between
J uly and September this year, a
Lop omcIuI suId.
TIe QuLurI hrm wIII IuuncI ILs
services in major urban areas
around Yangon, Mandalay and
Nay Pyi Taw in the third quarter
oI zo1q, reucIIng o percenL oI
the population, Ross Cormack,
cIIeI execuLIve omcer oI Oore-
doo, told a press conference to
update on progress of the com-
pany ahead of its launch of its
By the end of the year, services
will reach 60 percent of the pop-
uIuLIon, und wILIIn hve yeurs q;
percent of the countrys popula-
LIon wIII be under LIe hrm`s neL-
work coverage.
However, Cormack declined re-
veal the exact price of Ooredoos
SM curds, suyIng LIuL LIe hrm Is
still conducting a customer sur-
The price of SIM cards, call
and internet service rates will be
announced later. There will be no
limits as to how many SIM cards
will be issued. Our main goal is
to provide better telecommuni-
Kyaw Min
cations and internet services to
Myanmar people, he said.
TIe LeIeocms hrm, wIIcI won u
licence to operate in Myanmars
greenhIed LeIecommunIcuLIons
industry, said it has established
data centres in Yangon and Man-
dalay and another one in Nay Pyi
Taw is near completion.
TIe hrm suId IL wIII buIId over
400 infrastructure towers and
deploy 1,200 kilometres of its
own hbre neLwork Lo IInk ILs Low-
So far we have built more than
100 towers, and we are going
to have more by the end of the
year, Cormack said.
Ooredoo Mynmar formally got
its licence to operate of February
5 following its successful bidding
in a tightly-contested battle for
LeIecom IIcences In June zo1.
After formally receiving its li-
cence Ooredoo said in a state-
ment: the company remains
on track to meet its commitment
to deliver mobile communica-
tion services for Myanmars peo-
ple in six months time.
WIen LIe hrm IuuncIed ILs oI-
hcIuI websILe In ebruury, Cor-
mack said: From now on we
must work ... to launch after six
monLIs oI LIe eecLIve IIcence
date. We must keep our prom-
ises in delivering our services and
products to the people of Myan-
mar. Keeping the promises by
word of mouth isnt enough.
Ooredoos Norwegian rival
Telenor, which has about 150
million subscribers in Asia, the
Nordics and central Europe, said
it would launch voice and data
service within eight months in
Myanmar and expects to cover
90 percent of the countrys popu-
IuLIon wILIIn hve yeurs.
Cormack said Ooredoo is work-
ing on connecting to the existing
mobile network of state-run My-
anmar Post and Telecommunica-
LIons (MPT) und LIuL LIe hrm`s
network can already connect to
Telenors network.
Regarding user data protec-
tion, Cormak said Ooredoo owns
its data centres and networks
and user information will be
safeguarded according to inter-
national law. Even if the govern-
ment asks for user data, we will
not give them.
Cormack placed a strong em-
phasis on the work that continues
in the recruitment, development
and training of its local Myanmar
sLu. ReveuIIng LIuL LIe compu-
ny Iud over 6oo Myunmur sLu,
working across all functions of
the business, Cormack said they
are the key ingredient to deliver-
ing ongoing success:
Whilst acknowledging that
some challenges had been faced
in terms of network rollout, Cor-
mack said plans to introduce its
service during the third quarter
remained intact.
.~. ~~~ ~..._ 3 G
~,q~.,... ..e,...~~
.:.~ e. . . ~..:. . ~ . . .,:~
~~.. .~~:.~~~,
~.~ .q .q: ...... :.._ _e. ._~: .
e.~. 3 G ~,q~.,...._..
..... .,_._.~:..__..:.~
Data Center .:. ~_..:~_....
._ ~:~|~ ,~~ .~:~._.
.~.:..__e.._~:. .q._.
e...~.~._ Fibre ..
~~~ ~..~:.~:~._. _..
..:q~.~q._~:. .. q~
~ ....q,q.:~ _...._
. . e:q .. .. ~ Cormak ~._.:
.:~.~~,.~,.....q.. ...~: ~,_~._:,~.,_e
.~: ~ q .e:.~. .q. .:~.~ ~, .~ ~:~ e .q.. q:
..:~_.~~.. ....._~:. .q._.
.~.:. q.:_.._e.._.
Uoredoo Myanmar CEU Ross Cormack speaks during a press conference.

June 5-11, 2014
Myanmar Business Today
Myanmar Summary
A teIIer from the Indonesian unit of Canadian insurer ManuIife uses the phone at the company's ofce in ]akarta.
Manulife Makes Myanmar Return After 72-Year Break
anulife Financial Corp
(MFC) re-established
its presence in Myan-
mur becomIng LIe hrsL Cunu-
dian insurer to tap the Southeast
Asian countrys burgeoning mid-
dle class.
The company, which operates
in 11 Asian markets including
Thailand and China, opened a
represenLuLIve omce In Myun-
mars largest city Yangon recent-
ly, and plans to sell life insurance
products to the country of about
60 million people.
Manulife, Canadas largest
life insurer entered Myanmar
In 1qo, wIen LIe counLry wus
known as Burma, and left in 1942
Wai Linn Kyaw as the World War II broke out.
Were convinced Myanmar is
on the threshold of a great op-
portunity, Indren Naidoo, Man-
ulifes regional executive, said in
a statement.
Myanmar has a real oppor-
tunity here in terms of catching
up with the kind of growth and
development weve seen in other
parts of this region.
Myanmars middle-income
earners are set to double by
2020, according to the Boston
Consulting Group, leaving more
disposable income for residents
to buy insurance products. It is
forecast to reach one of the high-
est growth rates in Asia, with a
GDP gain of 7.8 percent this year
and next, according to the Asian
Development Bank.
Myanmars government has
been shaping a more invest-
ment-friendly country by unify-
ing the exchange rate, creating
autonomy for the central bank,
reforming tax policy, pumping
funds into social and physical in-
frastructure, and developing the
hnuncIuI secLor uILer hve decudes
of isolation and military rule.
Last year, Myanmar took the
hrsL sLeps Lo IIberuIIsIng ILs Insur-
ance sector by issuing 12 licences
to private domestic insurers. Be-
fore that, state-owned insurer
Myanma Insurance enjoyed a
monopoly for about 50 years.
The government has signalled
that foreign insurers and banks
would be allowed to start operat-
ing in Myanmar as early as 2015.
Major insurers such as Pruden-
tial, MetLife Inc, AIA Group Ltd,
ACE Group and Sumitomo Mit-
sui have also opened up repre-
senLuLIve omces In unLIcIpuLIon.
Myanmar was actually one
of Manulifes earliest markets
In AsIu. We`re conhdenL LIuL, In
light of its large, dynamic popu-
lation and the positive changes
in its economy, it can be a major
part of our future too, Robert
Cook, president and chief ex-
ecutive of Manulife Asia, told the
Wall Street Journal.
Some estimates suggest that a
measly 0.5 percent of Myanmars
population have insurance cov-
eruge. AILIougI uordubIIILy Is
likely a key hurdle for some con-
sumers, insurers are betting that
is likely to change over the com-
ing years given the countrys rel-
atively robust pace of economic
growth, its abundance natural re-
sources and a government pledge
to reduce poverty.
Its economy is small now, but
its growing at 8 percent a year
- LIuL`s more LIun CIInu, und
its population is twice the size of
Canada, Naidoo said.
Myanmar is also attractive to in-
surers because it has a young pop-
ulation with the median age being
28 versus 42 in Canada, he added.
And theres also a tremendous
energy among ordinary Burmese
families to get on in life, and catch
up with the growth in neighbor-
ing countries, said Naidoo.
Toronto-based Manulife, which
manages $584 billion, had 2012
revenue of $27.6 billion and has
28,000 employees worldwide.
Mitsui to Start Auto Service Workshop Business
itsui & Co will start
an automobile service
workshop business in
Myanmar in collaboration with
SCG Trading Co a subsidiary
of Siam Cement Group, one of
the leading industrial groups in
Mitsui and SCGT established
the investment company SCGT
Automobile Co (SCA) in Bangkok
and SCA established a joint ven-
ture company Mingalar Motor
Co in Yangon with Oriental Apex
Car Sales & Services.
The new service shop will start
operations in September, accord-
ing to Mitsui.
There are about 400,000 regis-
tered vehicles in Myanmar. As its
vehicle market consists mainly
of used vehicles, the demand
for high quality after service has
Kyaw Min been increasing. Also, with the
population nearing 60 million,
liberalisation and rapid growth
in the new car sales market is ex-
pected in the near future.
Mitsui began conducting busi-
ness ahead of other companies
in Myanmar. It had the most in-
vestment projects in the country
among Japanese companies in
the 1990s.
The company, which resumed
exportation of rice from Myan-
mar two years ago, said it will
keep contributing to the coun-
trys development through valu-
able business, including this new
automotive project.
Myanmar Summary
Mitsui & Co ~.,_e ..-
...:.~...,...:.. ~.._e.
._ Siam Cement Group -
~.~.~.._e.._ SCG Trading
Co . . ...| .~: ~:._._. .q.. . , .
~:. _.,.:.~ ....:.__e.
._~:. .q._.
Mitsui . SCGT ~~.,_e
q .. ._. . . . ~ . ~ SCGT Automobile
Co (SCA) ~:. ,.~:~~
~_.:._.. SCA ~.,_e
q, ~ , _. q Oriental Apex Car Sales &
Services . ....|.~: Mingalar
Motor Co ~:. ....|.~_.:.
._~:. .qq._.
~. .|~:.~, ..: . . . , ..:.
~:. .~~:.~ .~.__e.
._~:. Mitsui . ._.:_~:.:.._.
.~ q _., .:. ~ ~q:.~ ~:.~. .
.q..|. ,~~,~~~ q._. ~..|
~:....~ ~ . :.:...:~:._e ~. ._.
_. ..:.~:..:._e. _. . ~, ..: . .:.
~ .~~ .:._ . ~. ~. _. ~:.
.:.~..'~ ~e.~:..:. ~.~~
.~ q ._~: . . q._ .
Cars at an auto showroom in Yangon. A dramatic rise in car imports have prompted ]apan`s Mitsui & Co to set up automobiIe
service workshop in Myanmar.

_., .:. - ... . ~.,.| ~:..
. . , .~. . ~_e. ManulifeFinancial
Corp (MFC) . _.,.:.~ .~e
~_~.~_e. _.,._e._..._~:.
~. .|~ . ~ ~.,_e .. ~, ~
.~.|~~ ~:q...~~ ~~ .
~..~.~q_.. ._~:....~
_.,.:.- ~_~..._..~: q,~,
~ ~e.:..e,.. e..._..
...q .,. '~ .,q._ _.,.:
.~ ~.~~:...:. .q:..q,
...~q._~:. .q._.
~.,.|. - ~_~ .. . ~.~ ~:..
~.~_e.._ Manulife._ _.,.:
.. ~~, ...~. ~.q:~._..
_e._.. .~e~.:..~_.. ~, ~
_.,.:.~ ~~ .q:~._
~.| ~.e~.~~.q. ...
~ ._. .:. ._~: . Boston Consulting
Group - ...:.~~q.q_..
~.,_...:...:.~.,_e ~:..
.:. ~ee.:.._~:. .,.,.:.
._ .~. .|., . , ..~ ._ ~:q e _e .
.q.~. .,.,.:.._ e...
~~. ... q:..,.. .,:~
...:.~ ~..| .,.q._ ~:q-
GDP ~_....,.._._e.._~:.
_., .:~. .q~.,_e . ~:. q .. .
_........:.._ .~_e..
. .e: . ~ q _ . . . . . , .. :.~:.
~__..._.. -e~~:. .~
...:q.~_.._.. ~.,.~|..:.
._.:.._.. q,...:.~:. ...q.
. ~._ .. ~..:~ ~~ . :.~
~..._... _:.q.~_~~.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Contd. P 6...(Reasonable)
Contd. P 6...(Reasonable)
~q ~ . .q, .:.. q:~ ~_ q
_. . India -~._~: , .:.. ~ e~ .,
._ _., .: e ..:.:.._ . -.~
~ _.:.. ~:. e. _...~ q ._ .
q, ~ , ._ . ..q ' ., ..~: .,
_.:..:.., . . ..q. :._ .~ .. :.
.~ q ._ .
. ~ q ~q q, ~ , - ~ . , .. ..:.~ .
~.:.~..:~ . q:e _. . .:.
.~:~ .,:~ .~:~ ~.~ q ._ .
._ ...~ .. .:.. .~ _ ._ ~
q.:.... . .. _. . .~ .~: .. , .
._ .
.. ...~.:.~.:.:.._ ..
~ . ., q .. ~ . . , . _ , ..:..
~ ~ _ . .~: .q ... _._ ~ .. . e:
.:.-.q..:.. ~q.. ... :.._ ~
.:.~.:.:.-. .. ~. . ~ ~. , ..
.:.._ ~ ~ .q .e:..:. .|~ .,_. .
~.:~. . ..:~ _. . ... ._. ..:.
~ .| _e. . ._~: . .e: _.:.._ .
_._ ~ .~.:.~..:~ ~.:.. ._
. .:.. , ._. . , . , _. .. ~q.:.
.~: ._. ..:.. .:.q._~: ..~ q q
._ .
. . .... ._ . ~. .. . _., .:~
.:.~.:..~ ~ ~q.: ~. ._~ ..~:
.e ~ .. .|... ~, ~q.:~.~:
. _.:..:..~ ~~ ~ ~. .._. ..
e ._.:_~:.. ._ .
~. .|_..,:. :q, ~ , ~ ~. , ~:
.~. . ~ ~ .~:., . . _.:.
Getting A Reasonable Lunch: Yangons
Western Restaurant Scene
ocated at the meeting
point between the deli-
cuLe uromuLIc uvours oI
China and Thailand and the
InLense hery uromus oI ndIu,
Myunmur`s cuIsIne reecLs
the diversity of the nation it-
self. Yangon is a cosmopolitan
metropolis, home to some six
million inhabitants and an ev-
er-expanding expatriate com-
munity. Theoretically it should
have a culinary scene to rival
that of her neighbours, yet lags
far behind cities like Bangkok
and Singapore in gastronomic
Though Yangons local Bur-
mese cuisine can be excep-
tionally good, it is undeniably
more of an acquired taste than
that of neighbouring countries.
Street food is often not of the
same standard or cleanliness of
neighbouring Thailand. In fact,
local media reported this year
that one third of food samples
tested contained traces of dan-
gerous bacteria that can cause
food poisoning at the very least,
or even death if symptoms were
left untreated.
Having spoken with a number
of the cities expatriate commu-
nity, it was made clear that many
found local cuisine too oily, salty
or simply unpleasantly tasting.
Or as how one of my interviewees
colourfully put it, Burmese food
doesnt exactly taste bad, it just
looks like something that belongs
in the toilet, and can smell even
This can be a problematic sce-
nario, especially for those resid-
ing in Yangon for an extended
period of time. Though one can
readily get a local meal for less
than K5,000, and in many cases
much less, it remains to be seen
what Western cuisine is attain-
able at these prices.
It is fair to say what is on of-
fer has a reputation for being
on the expensive side and often
of questionable quality and au-
thenticity. Much alike the cities
hospitality industry, there are
some very good high-end res-
taurants, though it remains to
be seen II LIere Is mucI Lo oer
those on a more modest budget.
This article aims to identify
the available options for those
Jonathan Harvey
wanting a change from the
ubiquitous local fare by identi-
fying if one can eat a Western-
style lunch (main course and
drink) for K5,000 in downtown
Yangon. Western is of course
a very broad term, generally
food from Europe and the US
and certainly not from the tri-
umvirate of bordering nations
that hold such dominance on
Yangons restaurant scene.
In compiling this report I
sumpIed hILy sepuruLe resLuu-
rants in Yangon in addition to
speaking with numerous expats
to provide a balanced picture of
the available Western culinary
scene available to Yangons ex-
pat population.
Many of the people I spoke
with complained of the dif-
hcuILy oI sourcIng reIIubIe In-
formation. Aisha, a twenty two
year old teacher from London
revealed: With the exception
of websites like Myanmore and
Yangonite that do a pretty good
job reviewing a number of res-
taurants, I have to rely on my
outdated Lonely Planet, or the
IundumenLuIIy uwed websILe
tripadvisor where results are all
too easy to manipulate.
L remuIns reuIIy dImcuIL Lo
access good English language
information on the vibrant culi-
nury scene Yungon Ius Lo oer.
Fi ndi ngs
After compiling my research
I was surprised to identify a
mere eIeven oI LIe hILy euLerIes
(zz percenL) sumpIed oered
a lunch option accessible for
K5,000 or less.
TIese hgures ure Iowever
misleading, as they suggest
that it is relatively easy to get a
Western lunch for this price. It
is not. Six of the eleven eater-
ies where this is possible were
cuI`s, wIere one couId geL u
sandwich or Panini and drink
but not a full meal, which were
generally more expensive.
Some townships are undoubt-
edly more expensive than oth-
ers; the south-central area
of Dagon is one of Yangons
largest and most expensive
townships. Seven of the eight
eateries sampled in this neigh-
bourhood were too expensive
to obtain a reasonable lunch,
although Fatman Steakhouse
was particularly good and sur-
prIsIngIy uordubIe. WILI IIgI
rental costs and a wealthy expat
popuIuLIon Dugon LypIhes LIe
more expensive areas of Yan-
gon where cheap eating options
are sparse regardless of cuisine.
AILIougI IL Ius proven dImcuIL
Lo hnd u sumcIenLIy sIzed WesL-
ern lunch in Yangon for K5,000
American-style fast food estab-
lishments might be your best
bet. Korean-owned Lotteria for
instance was cheaper than BBQ
Chicken (where meals start up-
wards of K5,000) yet was still
relatively expensive. If one or-
dered u IocuI sLyIe meuI - wILI
rice as opposed to French Fries
- IL wus possIbIe; yeL even one
chicken burger meal from Lot-
teria costs more than K5,000.
Malaysian-owned Harleys pro-
vides another option at similar
prices, and is set to open more
outlets this year.
The remaining options were:
Huddy`s, u hsI und cIIps res-
taurant newly opened by a
British expat near Inya Lake.
Here one could eat relatively
uuLIenLIc hsI und cIIps uL u
good price; Sais Tacos, a Mexi-
cun euLery oerIng reusonubIe
but uninspiring Mexican fare in
small portions; and Ice Berry,
which has a few outlets dotted
around the city. Although not
strictly Western, Ice Berry pro-
vides very reasonably priced
Iood oI sIgnIhcunLIy vuryIng
quality. Some are pretty good
replication of authentic Italian
dishes (seafood creamy pasta
for instance) whilst other items
though cheap are sadly lacking
In quuIILy - burgers und pIzzu In
Pizza was a uniformly lavish
item often retailing for in ex-
cess of K10,000, though this
is not entirely surprising as
cheese can be so expensive. If
one sought something other
than fast food they would be
sorely disappointed, good qual-
ity Western food is a rarity in
Yungon und uords u premIum
Lo muLcI. EuLIng In LIe hner
restaurants in the city or the
hotels, would command simi-
lar prices to Europe with some
restaurants charging in excess
of K100,000 per head. Even at
more modest establishments
you would be lucky to eat a good
lunch for under K15,000.
As my knowledge of much of
downtown is restricted, one

As many restaurants cater

to the higher end of the
economic spectrum there
is little necessity to charge
cheap prices, as demand will be
high regardless.
A branch of IocaI restaurant chain Ice Berry in Yangon. AIthough not strictIy Western, Ice Berry provides very reasonabIy
priced food of signicantIy varying quaIity. Some are pretty good repIication of authentic ItaIian dishes (seafood creamy pasta
for instance) whiIst other items though cheap are sadIy Iacking in quaIity burgers and pizza in particuIar.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
OoredooMyanmar Launches
Start-Up Incubation Programme
IdeaBox to provide entrepreneurs with facilities, mentoring and start-up capital
oredoo Myanmar has
omcIuIIy IuuncIed un
incubation programme
in a bid to enable the countrys
start-ups to kick start their ven-
Lures, LIe hrm suId.
The IdeaBox programme
seeks to identify start-up com-
panies with a business concept
LIuL wIII benehL Irom Ooredoo`s
upcomIng G neLwork, LIe Qu-
LurI hrm suId.
deuBox wIII oer Iour Lo sIx
month of incubation and accel-
eruLIon InILIuLIve, omce spuce,
mentoring and guidance, as
well as start-up capital of up to
Ross Cormack, CEO of Oore-
doo Myanmar, said: Across
our markets, local entrepre-
neurs are developing innovative
ICT programmes and mobile
apps, but often do not have the
resources to bring these to mar-
ket or scale their solutions.
He said the program will pro-
vide expertise, funding and
exposure to develop entrepre-
Phyu Thit Lwin
Toyo-Thai Plans $2.7-b Coal
Power Plant in Myanmar
hailand-based Toyo-
Thai Corp is in talks to
invest $2.7 billion in
u 1,z8o-meguwuLL couI-hred
power plant in Myanmars
southeastern Mon state.
The engineering procurement
and construction contractor ex-
pecLs Lo hnuIIse LIe deuI In LIe
third quarter, said vice presi-
denL und cIIeI operuLIng omcer
Surattana Trinratana, accord-
ing to Thai media reports.
The work on the plant will
start as soon as possible after
the Myanmar government ap-
proves the project, he said.
The company recently signed
a deal for a project loan worth
$100 million from the Export-
Import Bank of Thailand to de-
velop a 120MW combined-cycle
gas-turbine project in Ahlone
township, Yangon. This project
Is under u o-yeur concessIon
from the Myanmar govern-
The Ahlone projects con-
struction began in 2012 on a
total investment of $170 mil-
lion. Partially completed with a
capacity of 80MW, this project
is already providing electricity
to the township and is expect-
Aye Myat ed to contribute $10 million in
revenue to Toyo-Thai Power
this year. The remaining 40MW
capacity will come online next
Toyo-Thai Corp is a joint ven-
Lure beLween Jupunese hrm
Toyo Engineering Corp and
Thailands largest construction
company, Italian-Thai Devel-
neurialism at the grassroots
We aim to support local
busInesses vIu LIese ugsIIp
developments, and to provide
inspiring role models of success
to encourage human growth
through innovation, with the
potential to impact millions of
lives across our markets.
TIe LeIecom hrm suId LIe pro-
gramme recognises that time
and focus is often a barrier to
start-up success and will enable
young Myanmar entrepreneurs
to focus 100 percent of their
time and energy on their new
IdeaBox aims to incubate am-
bitious companies with plans to
use technology and increased
mobile penetration to build
scale quickly and achieve $100
million valuations, it added.
All interested start-ups can
apply via
mm beIore June 1, wILI suc-
cessful start-ups to be an-
nounced on June 27. Ooredoo
Myanmar Summary
Myanmar Summary
Ooredoo _.,.:- IdeaBox .
.~ .~ ..:~.... ~ ~.~ ~.~
.:.~ ~_.,....~_.e .q._.
Ooredoo _.,.:- 3G ~,q~ .
.__e...: ..,....:.~ _
~.~.. q:.e_.. ...:..q...,.
..:. ..:q~.__e.._~:. .q
._ . .:~ . ...._ ~~ ~_ .:.. :
..... ._.:~._~: ~:._e__..
~q,~e, _. ~_.. ,..,..,q:
,_ .._:. _~:... . , .... . ~~
~..q ~, ..'.:~. . , .~ .~_
...._~q.~...:._e.._~:. .q
. . , ... .:. .~: _ . .q.~
~,.~~:.....:._e.._ ~.,.
~:, . .. ~ . ~ ~_._ ~~~. ....q.
~~~ _.,.:.,.~.e.:.~
~. .|~. ~. ~~ _ ...._ _ e.
._~:. .q._.
.. ~._.. ~ Toyo-Thai Corp
._ _.,.:..~:.. .,_._,e
~ .|~. ~~ ~ .~:~.....
. ..|~ ~:.....~ , ~_ ..:~ q,
~~~ ~..q~,..'.: ...
.e q..._...q, .......~q
._~:. .q._.
~,e:. . , ..:.. ..:~ .
. .q.~, , ~ . :.~.,_ e ~. .|
..:~ _ . ~ ~:.~~ e. ..
.~ ~~. ~_.. .~.._e~.._e
..:..~q._~:. Surattana
Trinratana . ._.:_~:.:.._~:.
~. .|~ . ~ ~.,_e ._~:.... ~
.. the Export-Import Bank
...'.:.,. ~~~...e~: .|~.
~~~q._.:~~:.....~ ,~_
..:~q,..:~_.._~:. .q
~ . . ~ . ..q..... ~.,_e ~.
_:,~~ ~ ~.: ~ . :~..q ~,
..'.:., .~...e q, ~~_ _..
._~: . . q._ .
. ..: .|. ., ~.,_e . ~ . ..q..
._ ._ .: . ~, _ ~ . _:,. .. . .
~..q ~, ..'.: ~' ., . ...e ._
~. ~. ~:.~. .| . . ~ , ..,q:~
~~_ _._. .._.._~: .. q ..q ., ..
._.:_~:.. ._ .
Parliament Okays $520-m
Agri Loan Plan
yanmars parliament
has approved a plan to
borrow an agricultural
loan of K500 billion ($520 mil-
lion) from the central bank and
$20 million from the World
Bank for the Ministry of Educa-
However, the Parliament did
not approve a proposal from the
Ministry of Agriculture and Ir-
Aung Phyo rIguLIon Ior u $16 mIIIIon Ioun
from the International Fund
for Agricultural Development
(IFAD) due to a controversy
over the proposed project sites,
Speaker Thura U Shwe Mann
told the Parliament.
While lawmakers agreed with
the proposal in principle, the
Speaker decided to shelve it due
to a lack of clarity over project
The parliament also passed
the 2014 writ petition bill and
decided to continue discussion
about the anti-terrorism bill on
LIe hrsL duy oI resumpLIon oI ILs
10th session last Wednesday.
At the session of the Lower
House, discussions were made
on the Standardisation Bill
which will be put forward to the
parliament, while at the Upper
House session, Deputy Minister
of Electric Power U Aung Than
Oo answered questions on dis-
tribution of electric power.
More than 50 bills will be
open for discussion during the
ongoing session.
Uoredoo`s stat-up incubation programme kesks to identify start-up companies with a business concept that wiII benet from
Ooredoos upcoming telecoms network.

June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
Myanmar Summary
Myanmar Summary
From page ...(Rice Lxports)
From page ...(Cov't ReIorms)
Sunlabob, Relitec Tie Up for
Myanmar Solar Projects
aos-based rural renew-
ubIe energy hrm SunIubob
has forged a partnership
with local energy company Re-
litec for solar PV projects in My-
anmar, the company said.
This partnership is an impor-
tant step for both Sunlabob and
Relitec to provide high-quality
renewable energy solutions to
Myanmar, a country greatly in
need oI reIIubIe, uordubIe en-
ergy, said Sunlabob chief ex-
ecutive Andy Schroeter.
Sunlabobs experience im-
pIemenLIng ruruI, o-grId re-
newable energy throughout the
developing world will comple-
ment Relitecs on-the-ground
knowledge of the local Myan-
mar market.
ewer LIun o percenL oI My-
anmars population have access
to grid-connected electricity in
Aye Myat Myanmar while estimates sug-
gest only 4 percent of the rural
population has electricity.
Myanmar is just seeing the
tip of the iceberg for solar en-
ergys potential, said Than
Aye, Relitecs managing direc-
tor. We are excited to be well-
positioned to meet the upsurge
of solar activity.
Relitec, which is based in Yan-
gon and specialises in engineer-
ing, installation and the opera-
tions and maintenance of solar
technology, has already tackled
on und o-grId soIur scIemes In
Myanmar and will bring valua-
ble local knowledge to the table,
Sunlabob said.
Western Union Expands
Business in Myanmar
merican payment ser-
vices provider Western
Union has expanded its
remittance business in Myan-
mar through nine local banks,
the company said.
The announcement, which co-
incided with the companys one-
year anniversary celebrations
in Myanmar early this month,
marked a sharp increase in the
number of agents from 100 in
key commercial towns to 460
across the country.
Western Union is one of the
hrsL gIobuI money LrunsIer
companies to provide service in
Myanmar, paving the way for
formalised international money
transfers after sanctions were
eased in 2012.
Phyu Thit Lwin SInce ILs omcIuI servIce IuuncI
uL LIe begInnIng oI zo1 wILI
just over 100 Agent locations in
the key commercial towns, the
Western Union money transfer
service is now available at over
460 Agent locations across My-
anmar, making it the largest
international money transfer
network in the country.
Chin State, a mountainous
ureu und one oI LIe mosL dIm-
cult-to-access states in Myan-
mur Ior hnuncIuI servIces, Is LIe
latest state to be covered with
Western Unions international
service in collaboration with
Cooperative Bank.
The recent signing of Yoma
Bank as Western Unions ninth
agent in Myanmar will add over
50 locations, linking consumers
with over 500,000 locations in
over 200 countries and territo-
ries, the money transfer com-
pany said.
Thida Myo Aung, deputy di-
rector general, Financial I nsti-
tution Supervision Department,
Central Bank of Myanmar, said:
Myanmar has made great
strides over the past two years.
Our own journey to prosperity
has been made possible thanks
to companies like Western Un-
Last year, the Western Union
Company completed 242 mil-
lion consumer-to-consumer
transactions worldwide, mov-
ing $82 billion of principal be-
tween consumers, and 459 mil-
lion business payments.t
U Chan Thar Oo from Rice
Enterpreneurs Association of
Muse told Myanmar Business
Rice exports via border trade
have always been our strong
point. But we have to expand
our international market and
for that we need to improve the
quality of our rice, a high rank-
Ing omcIuI Irom LIe MInIsLry oI
Commerce said.
Currently, Myanmar has only
a few rice mills that produce
high quality rice. Most rice mills
In Myunmur - ubouL 8q percenL
- produce z-percenL broken
rice, which is a lower grade of
rice and not favoured for ex-
ports in the EU or J apan.
n zo1-1q Y, Myunmur
exported 684,698 tonnes of
rice, earning $274.86 million
where overseas trade account-
ed Ior 81,;16 Lonnes IeLcIIng
$106.79 million.
AccordIng Lo omcIuI sLuLIsLIcs,
Myanmar received $2.21 bil-
lion in foreign investment in
LIe hrsL Iour monLIs oI zo1q,
with transport and communica-
tions sectors leading the pack
wILI $1.q bIIIIon, IoIIowed by
manufacturing, real estate, ho-
tel and tourism, and mining.
The total foreign investment
in Myanmar reached up to
$46.48 billion as of April. My-
.:~ ~._.. ~ _._ _e ._. . . .~
~ . ~ Sunlabob ~.,_e _.,.:.
~ .,...~.. PV ..~,..:.
....:q,~~~ _._~.~.~
Relitec . . ...| .. ~ ._~: . ~. .|
~.~. ._.:_~:..~._.
_.,.:.- ...q ,~ q:..,.
.~:~.: _~..~.....~.e
.q.qq_.. .~...... ...q ,
q:..,..: ....qq._~:. .qq
q, ~ , _. ~ ~._.. ~ ._ Relitec
~.,_e ~,e:..,. ~..
_... .,...~,_.._: ~.._.
~: . . ~ _. . _. . _. ..:.. . ~
e..._:.q... -_. q~.,
~ .,~...: ....|.~,.,
'~ ... q._.. .~,q.
~,e..: ....|.~..q~,..'.:
~~ ... ,, ., . qq . ._~: . . .. :.
.q.. ~ .., ..q: .~e .q.~, _~ ._:,
- .:q.~e:..:.~q .q._.
~~,~~ _:.q.... -_.
q~.,~ .,~.q:~ ..e
.q._~:.. .,~,., ~' ...
~ .~,q. ~,..'.: ~ ...
' .,.qq._.. ,e...~.._
., ~, . , '~ ... ' ~~ ~
~,..'.: ... ~ .,.qq.
~.:.~ _. .. ._ ~~,~, _:
.q...~. -_. q~.,~ .,
~...: ..e.q._~:.. .,
~,., ', .~,q.~,e..:
~,..'.: , ... ~~,.,.q._..
,e... .,~,., ~~~ ...
''' .~,q.~,e..: ... ,~,
_._...,~.q:~ ,e..e~
. ~.~~...:._.. ..e.q
._~: .~ . . . : ,_ ..|.._~: . e ..
,_ ..|.q_. .. : . .e .q._~: .~ .
..:. .:.. : ~q_ ~.. ._._ . .q.
~ ~. ~:._. . ~, ._. ., ~. .~.:.
~.: ~ee_..._~:_e.._.
,e...~~ .q:.~:...~:.
~e .. .e .q._~: .~ .q: .~:.~
~e. ~.:.,~e..~ ~~.,.:
.. ...: ~.~~q_~...,.~
.,.e~ ~q_~..._.~ .,
~ ~ . . .~: _~ ..:.q.e ''e . .. :.
~ .., .~, _~ ._:,. ~. _. ~q:q
~. .~ ._.:._.
_.,.:.~ ~,._..,~..
. ._ .~ ~.q~~ ~ . : .~ q ~. ,
~ .,.:,_..|..~q._~~~
.,.~.:..~q..: .,~q_
~.. .- , q:. . , .. : ~~ .~._~
.:_e._.. ~' q:..,..,.: ~,._.
., ~ . ~ . . . ._~: . . q._ .
. .e ,e .. ~ , . e .q..., ..
~.q~. ..,~:._e ~~.q
,~~~ . ~~~ ~_~:. ~~q_..
.,~..~.:.~.,_e ...,.:._e.
_.. ..... .,.,~..~.:..:.
.|~ ._~: . ~, ~ . ~.,_e e ,,
_._,e._ ...q.:.._~~~
., . . ~. . ~ . :.q .,_ . . ~. ~
- e~ ,. ,e .. . ~~ ,_ ..|~ _., .:
e~.._~e.~:.q._~:. _.,.:
. ., ..|.. . , .. .e , ... ..: .
~ ._.:._.
_. .. ._ ~~,~~, _:.q.
..~ .,~...: ,e... .,
~,., ',' .~,q.~,e.
~,..'.: , ... '
., .q . ._ .. .e .q._~: .. .,
~...: ,~~' ~, .~,q.
~, e .. : ~~' ... ~ ., .q . ._ .
~e ~ ~, .q ._ _., .:. q .. .
_ . . . . .~: .q ~.,_e _:.q.
~, _~ . .~, .q , - ~ _.,q:~ . . .~
~,_~._:, ~,_~. ..~e:.~:~:.
~ _~_e. :.~: _., ._ e ._ .. _. .
~..q ~, . ..... .q.. . , .
Western Union ~.,_e ,.-
..,..:.~:. _.,.:.q _._~.
~ ~... .~.~..~.~
q ._~: . ~. .|~ . ._.:_~:.. ._ .
~. .| ~ _., .~ ~:. e. .~..:
..~ ~...._ ~.~- _.,.:
.~..~. ~..._._ ~...
~,:.~ ._.:_~:.. _. ._e. _. . _._ ~ .
...:..q._..~:.:.~ .~. ~~~
. ,'~ ~ .~.~.. ~..:..:
._~:. .q._.
Western Union ._ _., .:. ~
... ..~ ~ .q:~ . . ~ ._
~. : . . ~ . ~ ~. . _e. _. . ~~ . . .
. .. :..q.. ~ . . .:. ._e..: . , . .~

anmar enacted a new Foreign
I nvestment Law in November
2012 and the MI C was formed
in 1994.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Reforms in Myanmar: Making The Next Asian Miracle
Myanmars reforms are lifting the economic outlook for one of Asias economic laggards as indicators show prospects for an economic boom
or decades, Myanmar was
the regional basket case
as irrational policies, iso-
IuLIonIsm und domesLIc conIcL
wrought havoc on the economy
and society. At independence
in 1948, the outlook seemed
bright. The country had one of
the best education systems in
the region, it was integrated
with world markets through the
port of Rangoon, and possessed
ample natural resources and a
sumcIenLIy weII-IuncLIonIng ud-
ministrative system. All of these
advantages were spoiled during
decades of authoritarian rule.
Resources degenerated over
decudes oI sLugnuLIon - purLIc-
ularly through declining quality
of education and infrastructure
- IeudIng Lo IuIIIng producLIv-
Economic reforms in Myan-
mar were actually initiated be-
fore the countrys political re-
forms. And while many of the
early economic initiatives pri-
marily served to enrich cronies
LIrougI hre suIes oI sLuLe us-
sets, there were also important
policy shifts. Even before the
2010 elections, macroeconomic
policies had improved. A key
indicator of improved manage-
ment is the stabilisation of in-
uLIon beIow 1o percenL sInce
zoo8-oq. TIIs Is u murked
achievement in a country where
spells of rapid price increases
used to be the norm.
I nfrastructure developments
during military rule largely
served strategic purposes, and
wasteful investments expand-
ing railways to remote upland
areas have given no sustained
economic return. But there
were improvements in physical
infrastructure developments in
the decade before 2010 as focus
was shifted to improving the
muIn norLI-souLI corrIdor und
links to markets in neighbour-
ing countries.
Administrative barriers to
both domestic and internation-
al trade remain, but abolition of
the restrictive trade regime and
unIhcuLIon oI LIe excIunge ruLe
in 2012 have produced impres-
sive export growth. Resource-
based commodities, primar-
ily natural gas and minerals,
are leading Myanmars trade
growth. The countrys loca-
tion between the expanding
economies of China, I ndia and
mainland Southeast Asia not
only provide opportunities for
transit trade but are also ad-
vantageous for supplying these
resource-hungry markets with
Anders Engvall
Mgonmor pelds
The rural economy is going
through a rapid transforma-
tion as exports of rice, beans
and other agricultural com-
modities expand. Rice exports
more LIun doubIed In zo1, prI-
marily fuelled by cross-border
trade with China, and are set
for more rapid growth this year.
Rural development is not only
benehLIng Irom new opporLu-
nities in agricultural exporting,
which had been prohibited for
decades, but also from impor-
tant policy shifts giving farmers
freedom to decide which crops
to grow. Rural credit remains
scarce but expansion of state
credit to farmers at favourable
rates has increased. Land law
reforms may provide additional
relief as farmland will be eligi-
ble as collateral, opening up for
increased private credit to the
agricultural sector.
I t will be essential that policy-
makers focus on spreading the
benehLs oI growLI ucross LIe
population. I nclusive growth,
alleviating widespread pov-
erty and improved welfare, will
build support for economic
reforms and may also lay the
foundations for solving the
countrys long-running domes-
LIc conIcLs.
Essential investments in
healthcare and education will
only be possible if the govern-
ment is willing to commit a
substantial share of its rev-
enues from exports of gas, oil
and minerals to the social sec-
tor. This would be a dramatic
change from the past, when in-
come from extractive industries
was used to fund the bloated
armed forces, the construction
of the new capital, Nay Pyi Taw,
and other projects of limited so-
cIuI benehL.
Remaining weaknesses in
macroeconomic management
are also a threat to long-term
developments. Sustained in-
ows oI IoreIgn InvesLmenL,
export revenue and foreign aid
risk making the overvaluation
of the kyat permanent, and
should be managed carefully.
A short decline in the currency
vuIue In LIe second IuII oI zo1
provided important relief to
exporters. But there is no in-
dication that the authorities
will continue to bring down the
strong currency, due to fears of
u reLurn Lo LIe IyperInuLIon
that was common in the past.
The currency rate continues to
constrain the development of
manufacturing, and, while this
obstacle remains in place, ef-
forts to set up industrial zones
will be futile given Myanmars
cost disadvantages compared to
the main East Asian production
Still, the reforms in Myanmar
to date have led to a conver-
gence of growth rates in Myan-
mar to the East Asian average.
I f remaining weaknesses are
addressed, there is scope for
further acceleration and that
would turn Myanmar into the
latest Asian economic miracle.
Anders Engvall is a research
jellou ct the Stoclholm School
oj Economics. This crticle jrst
appeared in the East Asia Fo-
rum Qucrterl Dn the ede
in Asia. East Asia Forum is a
platform for analysis and re-
search on politics, economics,
business, law, security, inter-
national relations and society
relevant to public policy, cen-
tred on the Asic Pccijc reion.
Based out of the Crawford
School oj Public Polic ct the
Austrclicn Nctioncl Uniter-
sity, the Forum is a joint initia-
tive of two academic research
netuorls: the Ecst Asicn u-
reau of Economic Research
(EAER) cnd the South Asicn
Bureau of Economic Research

Inclusive growth, alleviating

widespread poverty and im-
proved welfare, will build sup-
port for economic reforms and
may also lay the foundations for solv-
ing the countrys long-running domes-
tic conflicts.
.e....:..:~ _.,.:.~.,
_e .~|..~__.. ~..~_.
~.~,_e... _._~.._..~.
.:.._~: ...:..q.. ...q...,.
.:. ~..~: ...~.~ .~.:
e . :_e _e~ ., .. q._ .. ~ .. .q.
.~qq.._ ~, ~ ~.~~
.:._e .,.,..._ _.,.:.
._ ~. . , ~ ...~ .~.~: .. .
._:.q..,.q._ .~.._e.._..
q, ~ , . . ~. .. ~. . ~. : ...~ ~
. .~.~q: .,q:~..._._e..
~: .e ~:~..|_~e ~._ .~: .. ,
._ ~ . .. .q..,. q ._ . ~. .
_e. . ._ . ~. .|.~: .~ ~ .:.. :
.e....:..: ~:~:q.,..~
.~:~ .,_...,:~~ ee.
.~...._. .e....:..: ~q.
~_.. , . ~. _. ..,:~ ._:.q..
~._.. . ~. .~ .:. .~ e ..:. _. .
~ , ~ . . .~:..:. ~. ..:. ._ .
..:..: .- ..q._._.._.:..
. .:. ..~ . ~. .~ . _. ._e. ._ .
.,,.:.~.,_e ~..:.....:..q.
e_e..~:.~ .~q.~_...:.
~:. .q:..~: ....:.:._~..:
._. ,.~~.,_e. .~|.~.q
~._.: .~~ ~ ~.q..|._ .,q:~
q.,._. ~~~ .q..~:~..~.
. :. . ~. . .. :..q.. ~|..:.~:.
_.~.._. ...,..q.~ ~.~
_.~....: ~~~ ~~.
_.~~.._ .._~..e:...~:.
~~ q:..,.~ ~__..~: ,.
..~..q.~~ ~._..~.:~
,_.-e:~q.:_e._.. .~..~~
..,e._..:.. q:....~.._..
~...: q..._......._ ...:.
.q.~~ ~ ~ . _., ._ q :e . _. ..q
._ q .. ._. . . . .:._e. ._ .. ..:
~..| ~~~ .~. .e...
~~ . ~ . , .. .. .:.. .~ . e
. ._ .~: ._.:~ .. .._~: .~~ .
, . ~~. q: ~._.. ~..:~ ~~ .:.
~ ~.~~..:.q.:.._.
~e.q.~ ~....q..q: ~~:.
~...:.q...:._. ~~ ...
~~. ~,.e..:. ._e..:_..
. .._~...e.,.~__..._..
~ ~ ~ ~:.. e e q: . ~ , _. ~~ .
~ _e. ... ._ . ~q .~_.. ~._._.
~...q. .:~.:~.. .~
~.~.:.~ _.,.:.-~,.e
.q.~ .~~ . ~:. ...: .~ q ._ .
.- ~,~.~.e~_~:. ~_q
.,.. ~.q.~:~:q~,.~...
~:. ~ , ._ . .. .... . ~q .~_..
qq.._ ...~~.:.~:. .:~.
.... . ~ ~ _., .:. ~ , . e . ~:.
Infrastructure developments during military rule largely served strategic purposes, and wasteful investments expanding rail-
ways to remote upland areas have given no sustained economic return. But now Myanmar is seeing improvements in physical
infrastructure developments.

June 5-11, 2014
Myanmar Business Today
If Thailands political trouble persists, it risks losing market share to countries such as Malaysia, the
PhiIippines and India.
Myanmar Summary
Myanmar Summary
Myanmar Summary
Semen Indonesia Eyes
Acquisition in Bangladesh
ndonesias largest cement
maker, PT Semen I ndone-
sia, plans to acquire a ce-
ment company in Bangladesh,
said CEO Dwi Soetjipto.
The acquisition target owns
factories with 600,000 tonnes
and 1 million tonnes annual
production capacities, he said.
The two companies are in
LuIks und expecL Lo hnuIIse LIe
deal by the end of this year or
by early 2015, Filipino media
EurIIer In Muy, LIe hrm suId
it had agreed to buy a minor-
ity stake in a cement maker
this year in Bangladeshs neigh-
bouring Myanmar.
At the moment we can only
enter with minority control, so
we wIII sLurL wILI u o percenL
ownership, Soetjipto told re-
porters in J akarta.
Wai Linn Kyaw Soetjipto said the stake is
worLI ubouL $o mIIIIon buL
declined to name the Myan-
mar company involved in the
deal, but said it has an annual
production capacity of up to 1.5
million metric tonnes.
Chinu Sucks Senior Inergy Omciul Amid
Corruption Crackdown
he deputy director of
Chinas National Energy
Association (NEA), who
was under investigation for tak-
ing bribes, has been sacked as a
crackdown on the power body
widens, state media reported.
Xu Yongsheng was placed
under investigation two weeks
ago, one of a series of probes
into the energy sector.
TIe omcIuI XInIuu news
agency reported on its micro-
blog account that Xu had been
removed Irom omce.
TIree oLIer omcIuIs, IncIudIng
Wang Jun, head of the NEAs
renewable energy department,
Hao Weiping, director of the
nuclear power department, and
Wei Pengyuan, deputy director
of the coal department, are un-
der investigation, Xinhua has
Aung Phyo President Xi Jinping has tar-
geted the energy sector as part
of a wider campaign to weed out
pervasive graft that began when
Ie cume InLo omce IusL yeur.
However, the anti-corruption
drive has also enabled Xi to
weed out powerful opponents
und go uILer IIgI-runkIng om-
The ruling Communist Partys
anti-graft watchdog said earlier
this month it was conducting
inspections at Power Construc-
tion Corp and state-controlled
power equipment maker China
XD Group.
In March, the chairman and
the president of Three Gorges
Corp., the company that built
the $59-billion project for the
worlds biggest hydro-power
scheme, stepped down. They
have not been accused of any
.: e . _e . .. ... ..._. .. e .,
q. ~,~. National Energy
Association (NEA) -.~.:~
,_~:..q...~:. ~,~.-.
.q.~:~:~~ ~_. ~. . ~_e. q: ..
~ .e . ~ ._~: . ~. .q. .~ ..:
.:.~ .e:_..._.
Xu Yongsheng ~:. ...~~_
~_e..:..,._ _..,:.:.~,~.
~. . _e. ._ ~. .|~ . ~:. . , . ._
...~~ .........._.._e.._.
~..q. Xinhua .~._:,. Xu
~.,_e q: .. ~ .e _. .. q._~: .
._ NEA ._.__e._....~.~_~.
~~ WangJ un .~..e:....~
_:,.,_~:..q.. . Hao Weiping.
.~:~ . ... ._:,..~.:~,
_~:..q.. . Wei Pengyuan ~ ._ ._ .
~ . , .q :.-~_~ .. . .. ._. ~
... PT Semen Indonesia ~.,
_e .:...q~ ..._.~.~
~... ....|.q, ...~q._~:.
~..|~.~- ~...:~q:q..
Dwi Soetjipto . ._.:_~:..._.
~. .|~ . ~ . . . ~.,_e . ...| ..
.:.~~~ .......~q_.. e...
q, ..: . :.._~: .. q._.
PT Semen Indonesia ~.,_e...
~..:. .~._ .~~, . . . ~ _.,.:
. . ~ . ~ ~. . -q e e:~,_ ..
~:.~e e q, ..:~ _ . ._ ~: .
~ _., ....._.
Coup Crisis Could Cost Thailand Its Medical Tourism Crown

hailand is in danger of
losing its crown as the
worlds top destination
for medical tourism if foreign-
ers looking for low-cost, qual-
ILy IeuILIcure ure scured o by
political unrest, especially at
a time of growing competition
from Asian rivals.
The army seized power in a
coup on May 22 after failing to
prod bitter political rivals into a
compromise to end six months
of turmoil, prompting several
governments to warn their citi-
zens to think again before trav-
elling to Thailand.
Tourism accounts for 10 per-
cent of the Thai economy and,
of the 26.5 million people who
visited last year, about 2.5 mil-
lion came for medical reasons,
including spa and healthcare
servIces, uccordIng Lo hgures
from the Department of Export
About a third of those medi-
cal tourists come from the Mid-
dle East, another quarter from
Southeast Asia and nearly 15
percent from Europe.
Top-end Bangkok hospital
Bumrungrad attracts a lot of
patients from the Middle East
und compeLes wILI SG Rumes
Medical Group and Healthway
Medical Corp in Singapore. It
saw a 12 percent drop in foreign
InpuLIenLs In LIe hrsL quurLer
and an 18 percent fall in outpa-
News of violence that leads to
Khettiya Jittapong
adverse travel advisories or per-
ceptions of personal safety risks
can cause some medical tour-
ists to postpone their trips for
treatment, hoping that condi-
tions will soon improve, Ken-
neth Mays, senior director at
Bumrungrad, said in an email
to Reuters before the coup.
TIuIIund eurned $q.1 bII-
lion in revenue from medical
LourIsm In zo1, uILer uveruge
growth of 15 percent a year over
the past decade.
That is clearly in danger, with
arrivals at Bangkoks interna-
tional airport down 15 percent
In LIe hrsL quurLer.
Hospitals in Bangkok are
particularly hard hit, as thats
the epicentre of the unrest,
while those in Phuket and oth-
er destinations are reporting
downturns of 20-40 percent,
said Josef Woodman, CEO of
Patients Beyond Borders, a
US-bused websILe LIuL oers
consumers information about
medical travel.
It estimates Thailand, with
health costs 50-75 percent low-
er than the United States, for
exumpIe, uLLrucLed 1.-1.8 mII-
IIon medIcuI LourIsLs In zo1,
making it the worlds top desti-
Bangkok Dusit, the countrys
largest hospital group, has seen
u drop oI more LIun o per-
cent in patients from the Mid-
dle East this year and 7 percent
fewer patients from the United
States, although
it has wel-
comed 10 per-
cent more from
Jupun und .8
percent more
from neighbour-
ing Myanmar,
where health-
care is underde-
If trouble per-
sists, Thailand
risks losing
market share to
countries such
as Malaysia, the
Philippines and
The Philip-
pines and South
Korea are al-
ready seeing
more medical tourists from
China, Russia and the Middle
East in particular.
Kim Kyung-joo of South Ko-
rea Tourism Organisations
Medical Tourism Department
suId IL muy benehL Irom TIuI-
lands instability, noting that
many Chinese tourists came for
plastic surgery such as facelifts
and nose jobs.
Manila also thinks it is win-
ning custom from Bangkok.
There is a spike in surgery for
orthopaedics because of whats
happening in Thailand, Phlip-
pine Tourism Secretary Ramon
Jimenez told Reuters, adding
the travellers included Filipino-
Americans coming home.
Manila wants to promote
niche markets in orthopaedics,
eye surgery, dentistry and can-
cer care, Jimenez said.
The Kuala Lumpur Sports
Medicine Center has seen an
increase in foreign patients in
the past four months but Eric
Woo, ILs cIIeI operuLIng omc-
er, played down the impact of
Thailands unrest, attributing it
rather to promotions and good
Singapore, with some of the
best diagnostics and care in the
world, is also a threat to Thai-
land, said Woodman at Patients
Beyond Borders, even if costs
have risen for some years.
~. : ~.~: .. .~, ..:.q...:
.q:~..:.~ qq:.._ ..
~~~ .~q_e..:..~q._ .
..q...~_~.~q.~,q, .
..~.~ ... q~~ ~:~:
...e._...,:~.. .~.....
~..q.:.~ ... .q..:..:.
~ _., ._ . ..:.q, .~ .... _~._ .
. , . ..:. . ~ .. . .:.q:~
. ..:~. :. _ .q .._ '... .,.
~,~ ... ., .._ ~, ..:.q.
..:.q:~.~~~ .:.q:~._..
_e. ._ ....~|.~ .. ~~ ~ .q .. :.
.:.-. .. ~. . ._ ~.q ~.e . .
.... _e. _. . ~, .... ~. . ._ ~.q
.~:~:q._e.~: ~ q:..,..,
._ .q:.._e.._.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
After SAARC, Modi Must Look East
new government in In-
dia, led by Prime Minis-
ter Narendra Modi, bol-
stered by a majority in the Lok
Sabha, will be in a position to
take bold initiatives in the do-
main of foreign policy. An early
signal of this is the invitation
to South Asian Association for
Regional Cooperation (SAARC)
leaders to attend the swearing
in ceremony.
It is an adroit move with a
strong potential to pay future
dividends in Indias neighbour-
hood policy. It is also, perhaps,
LIe hrsL sLep Lo cuLupuILIng
Prime Minister Modi from a
charismatic provincial leader to
a global statesman.
Prime Minister Modi will look
Lowurds AsIu hrsL, IuvIng vIs-
ited several Asian countries as
chief minister of Gujarat. This
will give greater heft to Indias
Look East Policy (LEP) which
was Indias response to a uni-
polar world, marked by the end
of the Cold War and the demise
of the USSR.
The impetus for reworking
Indias foreign policy emerged
from the economic reforms and
globalization of the Indian econ-
omy. The expanding potential
for Indias trade and investment
with the dynamic Association of
Southeast Asian Nations (ASE-
AN) region, as well as the pes-
simistic outlook for regional in-
tegration of South Asia through
SAARC, were added incentives
for the LEP. In a sense it was
harking back to Indias histori-
cal links with Southeast Asia via
maritime routes. A major share
of global maritime trade goes
Pinak Ranjan Chakravarty
through the Strait of Malacca.
Rampant piracy has been con-
trolled and the India Navy has
played an important role in this
arena. Indias strategic interest
in the Indian Ocean is to keep
trade and commerce open, safe
and inclusive.
TIe conIcL brewIng In LIe
South China Sea is worrying for
all countries, with China laying
claim to disputed islands and
virtually the whole of South
China Sea as its territorial wa-
ters will pose a challenge to
the LEP. India is encouraging
all claimants to the disputed
islands to maintain peace and
hnd u soIuLIon wILIIn LIe UN
Convention on the Law of the
Code of Conduct. The need
to balance Chinas rapid rise,
by inviting and facilitating a
stronger engagement of India
and others with the region, was
a strong motivation for ASE-
ANs reciprocating positively to
Indias LEP.
The core of India-Southeast/
East Asia relationship is the
India-ASEAN equation. Beyond
ASEAN, the East Asia Summit
(EAS) has emerged as the larger
institution, with ASEAN as its
driver and hub. It includes not
only ASEAN member states but
also China, Japan, South Ko-
rea, India, Australia and New
Zealand, Russia and the USA.
Besides, India is a member of
Asia-Europe Meeting (ASEM)
and is also interested in joining
AsIu-PucIhc EconomIc Coop-
eration (APEC).
Trade and investment, two
important pillars of the LEP,
have registered steady growth.
Indias trade with ASEAN has
gone up from $2.9 billion in
1qq Lo ubouL $;o bIIIIon In
zo1, uILer ndIu sIgned LIe
Free Trade Agreement (FTA)
in goods in 2010. The aim is to
propeI LIIs hgure Lo $1oo bII-
IIon. EvenLuuIIy, u IuII-edged
Free Trade Area (FTA) is to be
established. It will be one of the
worlds largest markets of 1.8
billion consumers with a com-
bined GDP of $2.8 trillion.
Physical connectivity remains
a very important aspect of the
LEP. The India-Myanmar-
Thailand Trilateral Highway is
u 1,6okm Iong IIgIwuy LIuL
would establish seamless ter-
ritorial connectivity. India is a
party to the ambitious Trans-
Asian Railway project. Myan-
mar is not yet linked by railway
to India or Thailand. A 180km
segment from Assam to Moreh
via Imphal is under construc-
tion. The security dimension
Ius Iud u dumpenIng eecL on
infrastructure projects in the
northeast. While the Moreh-
Tamu-Kalemyo Road has been
completed, other projects like
the India-Myanmar-Thailand
trilateral highway, Kaladan
multi modal project, Tamanthi
hydroelectric project etc are
facing delays due to political,
securILy und hnuncIuI probIems.
The other major infrastructure
project is the industrial corri-
dor linking the Myanmar port
of Dawei with Thailand. India
must take a deeper interest in
this project that has attracted
Japanese and South Korean
The LEP has domestic impli-
cations on the development of
Indias northeast region and
the Indian economy in general.
Though the immediate focus
was on Southeast Asia, spe-
cIhcuIIy LIe ASEAN, over LIme,
the scope of LEP has come to
encompass a much wider and
inter-linked region. Some of the
platforms India has chosen to
India`s new Prime Minister Narendra Modi`s one of the most important foreign
poIicy tasks wouId be to estabIish a stronger reIationship with the ASEAN coun-
tries because of Indias huge economic interest in the region.

Japan Consumer Spending, Factory
Output Skid After Sales Tax Hike
use in pursuance of its Look East
Policy, such as BIMSTEC (that
brings together select Southeast
and South Asian countries) and
the Mekong-Ganga Coopera-
tion (MGC), linking India with
a number of ASEAN countries,
would point to that intended
broader geographical space.
Pincl Rcnjcn Chclrctcrt is
c jormer Secretcr, Ministr oj
Externcl Agcirs. He ccn be con-
tacted at southasiamonitor1@ This is an abridged
version of the original article in
South Asic Monitor.
Pedestrians waIk through the Shinsekai shopping district in Usaka.

apans household spend-
ing in April fell at the fast-
est rate in three years in
a sign that consumption could
be slow to recover from an in-
crease in the nationwide sales
tax, raising questions over the
pace of economic recovery.
Industrial production fell
more than expected in April as
companies cut output to avoid a
pile up in inventories in the lull
after the sales tax hike took ef-
BOJ om cIuIs Iuve repeuLedIy
suId LIey ure conhdenL spend-
ing will quickly recover as the
labour market remains tight,
but the bigger-than-expected
spending drop in April and a
Tetsushi Kajimoto and
Stanley White
slowdown in factory activity
could raise the stakes for mon-
etary policy.
Spending will recover from
May, but sales of durable goods
look weak and this could be
a drag on overall spending,
said Hidenobu Tokuda, senior
economist at Mizuho Research
TIe governmenL cun uord
to let the spending in its stimu-
lus package run its course. The
BOJ doesnt need to move now,
but it needs to keep an eye on
the situation.
Japanese household spending
fell 4.6 percent in April from a
year ago, more than the median
murkeL IorecusL Ior u .z percenL
annual decline. That marked
the fastest annual decline since
March 2011, when an excep-
tionally powerful earthquake
triggered a nuclear disaster.
Compared to the previous
month, spending tumbled by
u record 1. percenL In AprII,
more LIun LIe 1.o percenL de-
cline expected by economists.
Government data published
wILI LIe new hgures sIow LIuL
household spending fell further
after the April 1 sales tax hike
LIun IL dId uILer LIe percenL
sales tax in was imposed in
1989, and when it raised the tax
to 5 percent in 1997.
In both 1989 and 1997 spend-
Ing remuIned uL uILer LIe
tax was imposed and then in-
Nationwide consumer prices
sIowed LIuL InuLIon pIcked up
in April, excluding the April 1
suIes Lux IIke - u weIcome sIgn
in the Bank of Japans battle to
brIng InuLIon Lo z percenL.
Myanmar Summary
~, _~ ... NarendraModi ...:
._ Lok Sabha .~.:...|~._
~.e~..q..~.,_e ._.:..q.
.~|.~:. ~.:........:.:..
._~:. .,.,.q._.~..|.,.,.
.~ . : ~, _~ ... .. -~.... :
~ ,..~ South Asian Association
for Regional Cooperation (SAARC)
..|...:.:.~:. e~_~:._..~:.
_e .q .._.
~ . e- ~ . , .. .. ~|.~q._ .
~..|....:.~._ ~,:~
~~.~_.~..~..q: ..:._
~.:.~.:q._ ....:.~_e.
._.~_. ~,_~... Modi ~.,
_e ~. : ..| ...: .:.~_~:.~
...~. ..|...:~..~.,_e
~:q..:.~:. Gujarat _._,e
~, _~ .~_e. ._ .~ . ._ ~, _~...
Modi ~.,_e ~:q~:. ....:.
...~.,_e . . ..: . :.._ _e. ._ .
~..|....:.~._ .-e~
e,e_.~._ ...~.~~.~..
~.e. ..~.._ ~.q..:.~|.
.._. ~~_.q._.
._ -_. .~ . .. . ~~ . ~_., . .
. , ._e ~. .. _. . . ~. ~ . . .q: .. ,
_.~~.~:. _.,._.~:..,q,
....:q:~ ....~..._.. ...:.
.q._.,._.:.q.~~ ....,.
.:. _.~~.~q._.
.q: . . , . :. _ . ~~ . ._ ~:
~.~.:.~.,_e ~,~...~:.
..:.._~_.. -_..~~. .~.~,
~....:.._ .~:.._
~ ..~...._.
BOJ ~q:q.:.. ,.~~.,_e
. . .:....~ ~ . .:. :q .,._ ~~ ~
. .. . .:.._ ~_., . ._., ._ .~: .
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Thai Military Rulers Appoint Advisers; Economy in Doldrums
Appointed advisers include former generals close to palace; factory output slumped for 13th month in April
hailands junta has ap-
pointed as advisers two
retired generals with pal-
ace connections, putting power-
IuI esLubIIsImenL hgures IosLIIe
towards former Prime Minister
TIuksIn SIInuwuLru hrmIy In
the ascendant in the countrys
long-running power struggle.
Hoping to show things are
getting back to normal, the mil-
itary has also relaxed a night-
time curfew brought in after it
seized power in a May 22 coup,
and is expected to speed up ef-
forts to get the economy moving
again after months of debilitat-
ing political protests.
Data showed factory output
IeII .q percenL In AprII Irom u
yeur eurIIer, LIe 1LI monLIIy
drop in a row.
Figures later in the day are
forecast to show imports tum-
bled 18.2 percent that month.
Exports may have risen margin-
ally, but that will not be enough
Lo oseL LIe depressIon In LIe
domestic economy.
The team of advisers an-
nounced in a brief statement
included a former defence min-
ister, General Prawit Wong-
suwan, and former army chief
General Anupong Paochinda.
TIe Lwo ure LowerIng hgures
in Thailands military establish-
ment and have close ties to coup
leader General Prayuth Chan-
ocha. All three are staunch
monarchists and helped oust
Thaksin, who remains at the
heart of the political crisis, in a
2006 coup.
A Reuters report in December
revealed that Prawit and An-
upong had secretly backed the
anti-government protests that
undermined the government
of Thaksins sister, Yingluck
Shinawatra. She was removed
by a court on May 7 for abuse
Pracha Hariraksapitak
of power and the coup ousted
remaining ministers two weeks
Also among the advisers is
Pridiyathorn Devakula, over-
seeing the economy. A former
cenLruI bunker, Ie wus hnunce
minister in an interim govern-
ment after the 2006 coup when
strict capital controls were in-
troduced to hold down the baht,
causing the stock market to
plunge 15 percent in one day.
Thailands gross domestic
product shrank 2.1 percent in
LIe hrsL quurLer oI zo1q us LIe
anti-government protests fre-
quently shut down ministries,
dumuged conhdence und scured
o LourIsLs.
The military has moved quick-
ly to tackle economic problems,
notably preparing payments for
hundreds of thousands of rice
farmers that the ousted govern-
ment was unable to make.
But General Prayuth has not
set any timetable for elections,
saying broad reforms are need-
ed hrsL.
That may further complicate
relations with foreign govern-
ments that have called for a
speedy return to democracy,
an end to censorship and the
release of politicians, protest
leaders, journalists and others
Were going to have to con-
tinue to calibrate how well
work with the government and
military when they dont show
any pathway back to civilian
ruIe, u senIor US omcIuI LoId
Reuters in Washington. Were
very concerned and there will
be an impact on our relation-
Scores of politicians and ac-
tivists have been detained as
LIe mIIILury moves Lo sLIe re-
sistance to its takeover.
There have been daily, peace-
ful protests against the coup in
Bangkok with crowds calling
for elections and confronting
troops, although the number
of protesters had dwindled
to about 200 on May 27 from
about 1,000 on May 25.
A seven-hour curfew the army
imposed after the coup from
10pm each night from May 28
was shortened to four hours
starting from midnight.
Thaksin has not commented
on the coup except to say he was
saddened and hoped the mili-
tary would treat everyone fair-
ly. Yingluck has been released
from detention but remains un-
der some resLrIcLIons, omcers
and aides say.
Soldiers detained a former
education minister, Chaturon
Chaisang, after he had emerged
from hiding to denounce the
coup, saying it would only
worsen conIcL. He suId peo-
ple in detention were not being
treated badly.
Years of political turmoil have
polarised Thailand.
The Shinawatras strength
is in the north and northeast,
populous, mostly rural regions
that have won them every elec-
tion since 2001. Some Thaksin
loyalists had vowed to resist a
coup and the army and police
are hunting for weapons.
Many Bangkok voters support
the establishment and approve
of the coup if it means ending
TIuksIn`s Inuence. TIey suy
he is corrupt and disrespect-
ful to the monarchy. He denies
Most Thais express stead-
fast loyalty to 86-year-old King
Bhumibol Adulyadej.
This is a good coup, said
Chanchai Thonprasertvej, 54,
a doctor at a small pro-coup
gathering at Bangkoks Democ-
racy Monument. The army can
protect the land and the king.
It will protect my country from
Thaksin. Reuters
... ~. .q~.,_e . -~ . ..
.q.~:~:~.~ ~. .:.~~ ~ e.
.~,_~... Thaksin Shinawatra
-. .:.. .:.~:. , ... . q, ~~ ~
.q,,..~:. ~.~~.eq
._ ~_ ...:. - . .. . . .~:. ~:~,
....,~..~._~:. .q._.
...q.~:. ..,~._.~.,.
_., ._ .q:~ q q, ..: . , ...:~:._e
..~.~.,_e ... q~ ~:~:
..._...,:~ _~~:e.~.,~:.
..: ..... _. . ...| ..:.. : _~:_. .
._ . .q... _.. .:.._~: ~. .
.._ ...:..q.~:. _.,.__.~
.q, ....:.~q._.
~.~~.~.:.~q .~,.:.-
~ . . . . , .._ -_. .~~ . e.
. . . , .:..~:~ , ... q:. . , .
..:~._.. ~, . .~~~..:~
_.._e.._~:. .~qq._.
~ , .. _ .~ . .. .:.._ .~. .|.
~ ~ ... q:..,. ..:~.
._~: . ~.~ ~.~ .:.~q. q._ .
.~,~_~ ~,_.e_.~~.
..:._. _._~....:..q.~...
~:. ~:.~,q, ...:~..q._~:.
Thai soIdiers stand guard at a checkpoint near the pro-government '`Red shirts`` camp site on the outskirts of Bangkok.


June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
Are Human Rights Activists Todays Warmongers?
lmost everyone
likes the idea of
human rights. The
phrase itself is freighted
with goodness. Support-
ing human rights is like
supporting world peace.
The modern human
rights movement began
as a band of outsiders,
hgILIng governmenLs
on behalf of the faceless
and voiceless. President
J immy Carter brought it
into the American foreign
policy establishment by
naming an outspoken as-
sistant secretary of state
for human rights. This
meant that concern for
the poor, the brutalised,
and the imprisoned would
be heard in the highest
councils of government.
Now, several decades
after the human rights
movement traded its out-
sIder sLuLus Ior Inuence In
Washington, it is clear that
this has produced negative
as well as positive results.
The movement has be-
come a global behemoth.
Sometimes it functions as a
handmaiden to the power
it was once dedicated to
The most appalling re-
sult of this process in the
United States is that some
human rights activists
now regularly call for us-
ing force to resolve the
worlds problems. At one
time, human rights im-
plied opposition to war.
Now some of the most
outspoken warmongers
Stephen Kinzer
in Washington are self-
proclaimed human rights
They were among the
loudest promoters of war
to depose the Libyan dic-
tator Moammar Khadafy.
That war cast Libya into
cIuos und seL o u cIuIn
of events that has brought
radical jihadist rule to
large parts of Mali.
I n recent months, Presi-
dent Obamas human
rights team has pushed
for escalated intervention
in Syria and the dispatch
of more troops to Afghan-
istan. Human rights ac-
LIvIsLs - someLImes sup-
ported by well-meaning
but pitifully ignorant ce-
IebrILIes - Iuve urged LIuL
American military power
be used to capture a war-
lord in Uganda, impose
order in the I vory Coast,
crush rebels in South Su-
dan, and locate kidnap
victims in Nigeria.
This is a radical devel-
opment in the history of
the human rights move-
ment. Once it was gener-
als, defence contractors,
and chest-thumping poli-
ticians who saw war as
the best solution to global
problems. Now human
rights activists play that
role. Some seem to have
given up on diplomacy
and statecraft. I nstead
they promote the steady
militarisation of Ameri-
can foreign policy.
These trigger-happy hu-
man rights activists rotate
in and out of government
jobs. Last month more
than 100 scholars, ac-
tivists, and Nobel Peace
Prize winners protested
against this revolving
door in an open letter to
Human Rights Watch,
which, thanks to an aston-
ishing $100 million gift
Irom LIe hnuncIer George
Soros, has become king of
the human rights hill.
Their letter says that,
although Human Rights
Watch claims to defend
and protect human rights,
its ties to the American
military and security es-
tablishments call into
question its independ-
ence. I t names prominent
Humun RIgILs WuLcI hg-
ures who have served in
the State Department and
CI A; condemns the group
for supporting the illegal
practice of kidnapping
and transferring terror-
ism suspects around the
planet; and asserts that
it produces biased reports
exaggerating human
rights abuses in countries
the United States dislikes,
like Venezuela, while be-
ing gentler to American
allies like Honduras.
HRWs close relation-
ships with the US gov-
ernmenL suuse sucI
instances with the ap-
peurunce oI u conIcL oI
interest, the letter says.
Also in May, news came
that a French publisher
will issue a book version
of a devastating essay by
a former American dip-
lomat, Richard J ohnson,
called The Travesty of
Human Rights Watch on
Rwanda, that has been
circulating on the I nter-
net for the last year. I t is a
detailed indictment of the
policies Human Rights
Watch wants Rwanda to
adopt. They include de-
mands that the Rwandan
government end restric-
tions on hate speech and
invite the former geno-
cide army back from its
bases in the Congo so it
can compete for power.
I n his paper, J ohnson
accuses Human Rights
Watch of waging a vis-
cerally hostile campaign
against Rwanda from
behind an aura of sanc-
tity. He asserts that this
campaign is a threat to
that countrys peace and
The mendacity and
bias of HRWs politi-
cal campaign against the
post-genocide Rwandan
government undermines
the overall credibility of
Western human rights
advocacy, he concludes.
The world needs fear-
less truth-tellers. Some
human rights advocates
are. Others have suc-
cumbed to the tempta-
tions of power. Their
movement is in danger of
losing its way.
Stephen Kinzer is c tis-
iting fellow at the Watson
Institute for Internation-
cl Studies ct roun Uni-
versity. The op-ed was
jrst published in the os-
ton Globe.
Internet users at a cyber cafe in Iran.
Iranian Hackers Use Fake Facebook
Accounts to Spy on US, Others

n an unprecedented,
three-year cyber es-
pionage campaign,
I ranian hackers created
false social networking
accounts and a fake news
website to spy on military
and political leaders in
the United States, I srael
and other countries, a cy-
ber InLeIIIgence hrm suId
last week.
I Sight Partners, which
uncovered the operation,
said the hackers targets
include a four-star US
Navy admiral, US law-
makers and ambassadors,
members of the US-I srae-
Jim Finkle li lobby, and personnel
from Britain, Saudi Ara-
bia, Syria, I raq and Af-
I f its been going on for
so long, clearly they have
had success, iSight Exec-
utive Vice President Tif-
fany J ones told Reuters.
The privately held com-
pany is based in Dallas,
Texas and provides intel-
ligence on cyber threats.
I Sight dubbed the op-
eration Newscaster be-
cause it said the I ranian
hackers created six per-
sonas who appeared to
work for a fake news site,, which
used content from the As-
sociated Press, BBC, Reu-
ters and other media out-
lets. The hackers created
another eight personas
who purported to work
for defence contractors
and other organisations,
iSight said.
The hackers set up
false accounts on Face-
book and other online
social networks for these
14 personas, populated
LIeIr prohIes wILI hcLI-
tious personal content,
and then tried to befriend
target victims, according
to iSight.
The operation has been
active since at least 2011,
iSight said, noting that it
was the most elaborate cy-
ber espionage campaign
using social engineering
that has been uncovered
to date from any nation.
I Sight said it had alerted
some victims and social
networking sites as well
as the US Federal Bureau
At one time, human rights impIied opposition to war. Now some of the most outspoken warmongers
in Washington are seIf-procIaimed human rights advocates.They were among the Ioudest promoters of
war to depose the Libyan dictator Moammar Khadafy.
.~.,..|.~.~: .~.
~.q.. ~ ~e ~.~ ..:~
_~.|~e . . .:. .~ e ~ ~
~.~: .. ..~ , _e_ ~ .:.
.|~e .. ~. ~.q.~ .:~ .
_ . .e: ~. : _ . .. . ..q.~
..~ .. . ~. ~.q.. . q :.
. .~ ~.~: _ . .~. .~
.~.:._.~..~, ~..~
. . .~ ~ e .:. ~. .q~:.
.~e,~~.~~:.~, .~
.:.|~e . ~..q ~, .. ~
J immy Carter .~~.:
.~: ~..q ~, . _.:..q.. ~|.. :
. q . ~. ~.q..~ .:~
~~ ..q.. .~ ~._ .:q .. .
_. .~:._e . . .:..:. .|~e .
~..:e~.~: ..q..~
q~ .~ . :e . . . q. .~ ~~ ..
. :.q. .~ ~.,, ~. .q
~_....~:..: _~:.,:.
e. ~.|. :.~: ~. .| _. .
..~ Washington ~..'
.e . . . .:.. :_~:_~ .. .. ~
.~:.~..~: ..~..|~
....~e.~:~ ~~q:.
.~ .:_~.|_. . ~. .|. . q :..
.~ e: ~. :~. ~ . . . . . :
._~:~ .~ e e .~: ...:~
.~: ~ _~ . :..:.|_. .~. .|
~...:.~: ~:~:..~
~~ ~ ~... ~. .e:~ . _e.
...e ~. .|~... :.~:
q, . .e e _ . . .:~:.~ .|
of I nvestigation and over-
seas authorities. Reuters
~ q, e~ ~:. :.~.,_ e
. . ~ , e~ .:.~ ~.~:
~~.:.e,~._.. .~.~
.. ~~.:.e,~._..~:._e
~..q~,_._.:. Israel
.~_.:...:.- ...q..
~ . . . . , ..:.. . ~
. ~ q ._ ~: .. ~ :. _ .
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
LS Iuctory, Condence utu Boost Growth Prospects
rders for long-
lasting US-man-
ufactured goods
unexpectedly rose in April
und consumer conhdence
perked up in May, sup-
porting views of a rebound
in economic growth.
Other data showed
home prices moving high-
er in March and services
industries, which domi-
nate the economy, grow-
ing at a fast clip in May.
It appears that the econ-
omy continues to bounce
back from the harsh win-
ter, said J ohn Ryding,
chief economist at RDQ
Economics in New York.
Orders for durable goods,
items ranging from toast-
ers to aircraft that are
meant to last three years or
more, climbed 0.8 percent
last month after an up-
wurdIy revIsed .6 percenL
gain in March, the Com-
merce Department said.
Demand for defence
capital goods surged and
Lucia Mutikani
orders for fabricated met-
al products, transporta-
tion gear and electrical
equipment, appliances
and components all rose.
While non-defence capi-
tal goods orders excluding
aircraft, a closely watched
proxy for business spend-
ing plans, fell 1.2 per-
cent, the March reading
on these so-called core
capital goods was revised
sharply higher to show
u q.; percenL guIn - LIe
largest since November.
The large upward revi-
sion hints at a stronger
Iundo InLo LIe second
quarter, said Gennadiy
Goldberg, an economist
at TD Securities in New
York. The data is indica-
tive of a pickup in capital
investment activity dur-
ing the spring.
Separately, the Confer-
ence Board said its index
of consumer attitudes
rose Lo 8 In Muy Irom
81.7 in April as house-
holds labour market
views improved. Ris-
ing household optimism
should boost consumer
spending, which accounts
for more than two-thirds
of U.S. economic activity.
House pr i ces r i se
Another report showed
house prices continued to
appreciate in March. The
pace, however, is mod-
erating. That could help
the market, where rising
prices and mortgage rates
have undercut sales. The
Standard & Poors/ Case
Shiller gauge of prices
in 20 metropolitan ar-
eas rose 12.4 percent in
March from a year ago.
The reports helped to
lift US stocks and push
the Standard & Poors
500 index to a record
high. Prices for US Treas-
ury debt fell. The dollar
wus uL uguInsL u buskeL
of currencies.
Core capital goods ship-
ments, which are used
to calculate equipment
spending in the govern-
ments GDP measure-
ment, fell 0.4 percent last
month after rising 2.1per-
cent in March. Reuters

A pair of Beats EIectronics IIC "Taxi" headphones at the Beats by Br Bre pop-up store in New York.
Apple to Get Beats, Music Mogul Iovine for $3 Billion
pple I nc will buy
BeuLs Ior ubouL $
billion and bring
recording mogul J immy
I ovine into its ranks, hop-
ing to win points with the
music industry and help it
catch up in fast-growing
music streaming.
As expected, Beats co-
founders I ovine and rap-
per Dr Dre will join Apple
as part of the acquisition
of the music streaming
and audio equipment
They should prove key
in forging relationships
with an industry that
historically viewed Ap-
ple with suspicion but in
recent years has pressed
the iPhone maker to do
more on subscription ser-
vices, a market expected
to eclipse song downloads
in the long run.
I ovines music industry
relationships could ease
noLorIousIy dImcuIL II-
censing negotiations for a
future streaming service,
recording industry execu-
tives say.
The ugly truth is that
there is such a Berlin Wall
between Silicon Valley
and LA, Apple Chief Ex-
Christina Farr ecutive Tim Cook told the
Wall Street J ournal in an
interview. The two dont
respect each other, dont
understand each other.
While the price tag rep-
resents an iota of Apples
roughly $150 billion cash
Iourd, IL murks u sIgnIh-
cant departure for a com-
pany that for two decades
has stuck mainly to acqui-
sitions worth hundreds of
millions of dollars.
The deal is seen as Ap-
pIe`s eorL Lo jump-sLurL
an uneven attempt to
make headway in music
streaming, the fastest-
growing segment of the
market, as iTunes sales
decline. Pandora Me-
dia I nc and Spotify have
raced ahead while Apples
eight-month-old iTunes
Radio has not made much
of a dent.
With music downloads
in decline, record labels
have also put pressure
on Apple to get its act to-
gether on streaming. The
record labels hope Apple
can turn Beats Music into
a strong competitor to
Spotify and other stream-
ing services, sources fa-
miliar with the matter
have said.
Apple created the digi-
tal download
business and has
had an amazing
run, but the in-
dustry is going
in the streaming
service direc-
tion, said Dan-
iel Weisman, a
manager for Roc
Nation who rep-
resents bands.
Gai ni ng cool
Apple is also
gaining a line of
high-end head-
phones popular
with a young ur-
ban demograph-
ic, bumping up
its cool factor,
analysts have
said. But indus-
try executives say
the company was
most impressed
wILI BeuLs` hve
month-old music service.
The market as a whole
is burgeoning. Stream-
ing subscriptions jumped
1 percenL In zo1 Lo $1.1
billion, out of $15 billion
spent on music, accord-
ing to the I nternational
Federation of the Phono-
graphic I ndustry. Mean-
while, downloads slipped
The other prize is Beats
co-founder himself. I o-
vine, 61, is best known as
the co-founder of I nter-
scope Records, a rap mu-
sic pioneer that branched
out to include acts like
Lady Gaga and U2.
._ -_..~~. ~.~~._..
...~ _.~~.~: ...:.
.q._., ._ e _e ..:_. _e. ._~: .
......:.~ ,_._~._.
~_.:.~.~ ~.~ .:.~q
.~ .~~ .~ . ....:._. ~~
._.. ~,..:...,..:.._
._. .....~~: _.~~
.:._~:. .~qq._.
. . q _ . ~ , .. _ ..:._e. ._
. , e ~ .~ . ~._.~:..e: .
.:.-.q: .~:.. :._.e. .
~~. ._... q:..,.
_ . ~~ . ~: .~ .~~ .
, ... ' q:..,. _.~~.
._~: . ~ , . e .q._:,. ~
_.,._~_:.._. ~:~e.q.
~ , .. _..:.~~ ~ ~e . ~:.
.:.._. _.~~._.. ..~
~ ~ , .:. .e e . ..: .q.
......_..:.. ~_.:.~,
.. _ . ~e . ~:. .:. ._ .
_.~~.:._~:. .qq._.
Apple ~ . ~ ._ ~..q ~,
e .q ._.~.. . ..:.~ ~e
e ._ _e. _. ..~ ~..:..~
.:..~ q ._ ~ , . .. ~. .
.~.. . ..q: .q. ~ . . .. .
Apple ._ , .~ -. ...:
. .~ ~~ ..~. ~.. .
._~: .. ~qe:~.~~_.
~ q e:~ . ~ ~_ .: .
Iobine Dr Dre .....|.. q
q . _. ._e. ._ .
~_. Apple._ .:._ . .
.:.~~ .. - download ~,
..:..~.._~....._ .
. ...~ ~ ~ ...: . q, ..:
.q..._....._,.-.e .
. . . . . , ..|. ..'.:., .q:.~:
. ., ..,. ~~ ~ ._.:.._
q..._. . . . _e. .,._.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
David Mayes
remember arguing with one
oI my undergrud hnunce
professors about the ef-
hcIenL murkeLs IypoLIesIs on
multiple occasions, and in the
end remember IIs hnuI con-
cession amounted to something
along of the lines it doesnt
matter what the reality is, aca-
demIu suys murkeLs ure emcIenL
and thats what you need to
answer on the exam. Anyone
who has ever sat on a trading
desk knows that markets are far
Irom emcIenL und LIuL InvesLors
are not the least bit rational, so
Iow does LIIs uecL your overuII
investment strategy?
TIe hrsL LIIng Lo do Is uccepL
reality for what it is. The basic
law of supply and demand is the
one and only real reason why
the price of anything goes up
and down. This is true for or-
anges and i-phones, as well as
stocks, bonds, and real estate.
At any given moment on an ex-
change, there are those wishing
to purchase and those wishing
to sell, and most often they have
a price that will entice them to
do so. Often they have formal
oers Lo seII ouL (known uIso us
the ask) while simultaneously
oLIers Iuve oers Lo buy ouL
(known as bids). When these
converge a trade happens, and
a market price is established.
I t is important to keep in
mind that this price is only for
a certain number of shares or
Are Markets Rational?
bonds, etc. I t is also important
to realise bid and asks can be
cancelled relatively quickly.
This is why markets can move
very fast in times of a panic. All
the buyers suddenly disappear
at all prices close to the most re-
cent trade. Similarly in a rapidly
rising market people looking to
sell will keep moving their of-
fers up hoping to get a better
What is more important than
the live orders in the market, is
all of the market participants
holding the security or potential
participants looking to either
buy or short (bet that the price
will go down by borrowing the
securILy und seIIIng IL hrsL wILI
the hopes to buy back later at a
lower price). At any moment in
time you cannot see this poten-
tial supply and demand, but it is
there and when the conditions
are right it can send prices rap-
idly in any direction.
The reasons behind why this
supply or demand suddenly en-
ters the market are irrelevant,
and this is the concept that is
so hard to grasp for most peo-
ple who naturally have brains
wired for logic and rationality.
I f a company beats its earnings
forecast, logic dictates that this
is a positive event and therefore
the price should rise. However,
if most participants had al-
ready bought because they had
inklings that the company just
might beat its forecast, than
there is nobody left to buy when
the company actually does so.
The demand that would be ex-
pected by the news does not
materialise because instead of
participants looking to enter on
the good news, they are already
holding the shares and want to
dump them to cash in on their
correct prediction. Sadly all of
this supply pushes down the
price and the participants are
punished for the fact that too
many people made the correct
This is why it is often said that
markets will do whatever they
can to prove the most people
wrong, and is also why con-
trarian investing works so well.
Once the majority of market
participants have all agreed on
an expected future outcome and
put their money where their
mouths are by taking positions
in the markets, they unwittingly
become a resistant force to the
price actually moving in their
direction. Next time you see
markets doing something to-
tally crazy (such as rising for six
years to new highs in the midst
of a weak global economy), un-
derstand that the underlying
mechanics of the market are
based on supply and demand
rather than logic. The reason
cycles happen is that after a cer-
tain amount of time overhead
supply builds up to a tipping
point, and when the general
public bails out it usually hap-
pens fast and furiously. The
old adage that the trend is your
friend works well for short term
trading, but when it comes to
investing, make sure you never
follow the herd.
David Mayes MBA provides
wealth management servic-
es to expatriates throughout
Southecst Asic, jocusin on
UK Pension Trcnsjers. He ccn
be reached at david.m@fara- Icrcmond UK is
regulated by the FCA and pro-
vides advice on pensions and
Swedish Business Delegation Explores
Business Opportunities in Myanmar
Swedish Business Dele-
gation comprising high-
level representatives
from twelve companies, largely
based in Singapore, visited My-
anmar last month.
The purpose of the visit was to
identify business opportunities
and to get a better understand-
ing of the economic and politi-
cal developments in Myanmar.
The programme included
meetings with Minister of I n-
dustry Maung Mying, Vice
Minister of Finance Dr Maung
Maung Thein and Vice Minister
of Commerce Dr Pwint San in
Nay Pyi Taw.
The event was organised by
Kristian Lauritzen
the Embassies of Sweden in
Bangkok and Singapore in close
cooperation with the Swedish
Business Association of Singa-
The Business Delegation was
led by the Ambassador of Swe-
den to Myanmar, Klas Molin,
together with Mr Hkan J evrell
Ambassador of Sweden to Sin-
The delegation also met with
representatives from Asian De-
velopment Bank, World Bank
and I nternational Finance Co-
The program also included
meetings with the Myanmar
Federation of Chambers of
Commerce & I ndustry (UMF-
CCI ) as well as a discussion on
CSR issues lead by Ms Vicky
Bowman from Myanmar Re-
sponsible Business.
The delegation also had the
opporLunILy Lo receIve hrsL-
hand knowledge about the busi-
ness climate in Myanmar from
interactions with representa-
tives from the Swedish business
community and representatives
from the local business commu-
nity in Yangon, through meet-
ings as well as networking ses-
Anyone who has ever sat on a trading desk knows that markets are far from efcient and that investors are not the Ieast bit
A visiting Swedish deIegation with Myanmar government ofciaIs.



.~:.~ ~._..~._ ~.~
~.:...|~._ ~.~ ~ ..
_e e..~ _.,.:...:.q:~
._.~.._~:. .qq._.
~..|~._~.~.: _.,.:.
- ...:..q.~.~....:. q:.eq,
_., .:. - . .. :..q.~..' ,:.._ .
qqq,. _.,.:.-..q.~.~~
..:.~:. ...:q,_e.._~:. .qq
.._~..q: .|..:~~..e:~,
.._~....~~.~~._~:. _..
._~~:~ ~,.~:.~q..|~e.
_...~: ~,.~:.~.~ .q ~..
.~.....~~.~: .~.~.:
e._e..,~e.~: ~.q...|
.. .~:..~~.~: ...~~.
~: .q:~.q_.. .|._~:. ..e:
.:.... ._ ee . ~. .,~:_ e. ~e ''
. ~:_e. .|~e . .q: .~e .q.. . :
.,~ ._... ...~~.~: ~..
~..~:, .~.~:.,_...~: q...
_.....~.~: ~.._~:......
. ,_ .,_ .. .. .. . _~.|~e .
....~: ~.e:~ .q q...
_....-e:~...~ e.~~.
......q.:~.~: .~q:
.~_e..,~e.~:~ .~.q.:.|.
..... ~e.~:.q ~._......
~.~: ~q:~:...q ~,e..~ :
. ~~ . ~ ~. ~ _e. .,q. . ~
~. ~~._ ~: ._ .. ~ ~. . . _ e. .|
~e. .|e: ...:.. ~e,.
..~: .....:.., ~._.._....
~ ~ .~ ~~ ~ . , ~, .|~e ...~:
.q:.~e.~...: .q:.e...:..,
~..~ ~ee...:..,~..~.:
.~:.: .~.~:.~ ....,.
~...~:q.,.:.|. ~.. .q:.
~e .e:~ ~:..,~:._~: . ...~ ~
q .... , .. ~ .~|e:q~ ..' ~ .:
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Frail Financial Services Stunting Myanmars Growth: UN Study
Inadequacies of the existing system have contributed to high usage of informal credit services
rIgId hnuncIuI sysLem
und IImILed scope oI h-
nancial products and
services have bogged Myan-
mars growth and contributed
to a high usage of informal
credit services in the impover-
ished Southeast Asian country,
a UN study revealed.
Serious capital constraints
ucross LIe hnuncIuI secLor Iuve
also daunted banks ability to
extend credit, the UN Capital
Development Fund (UNCDF)
and the UN Development Pro-
gramme (UNDP) said in their
recently released report.
CurrenLIy, hnuncIuI servIces
are at a very low level in My-
anmar and this is impacting
the countrys ability to harness
the capital available for nation-
al development, said Henri
Dommel, director of I nclusive
Finance at UNCDF.
SIgnIhcunL eorL Is requIred
to move the country towards
more IormuI hnuncIuI servIces.
The research has provided indi-
cuLIons on wIere Lo Iocus eorLs
to develop the sector, he added.
Conducted last year, the study
included a survey of 5,100 na-
tionally representative house-
holds and collected qualitative
data from focus groups sessions,
home visits and key informant
interviews, UNCDF said.
The report, Making Access
Possible (MAP) Myanmar Diag-
nostic, said only four percent of
people in Myanmar have bank
savings accounts in their own
AbouL q percenL oI respond-
ents in the survey had no access
to whether regulated or unregu-
IuLed hnuncIuI servIces.
However, high levels of us-
age amongst those who had ac-
cess wus Iound - 1 percenL oI
respondents used unregulated
and informal services such as
money lenders and friends and
families to borrow money.
UNCDF said the prominent
roIe oI InIormuI hnuncIuI ser-
vices points to strong potential
demand for regulated services,
Htun Htun Minn
_._.q.~.._ ...:..q..,..
~,.~:.._ _:.q.~~,
. ~,..:..:.._ _.,.:.-
~ .~~ . ~:. ~:.. ..~ q ._~: ..
...,._ .._~..,..... _..:.
.,_. .._ . ~:. . .q .._. ._e.
._ ~: . ~ ... .. .:. ~. . .
_:.q.~_~. . . .q . q .
~, .~ . .:.._ ~ .:.- . ._~.
..: q ~ . . . .~:..:.~:. _. . .._.:~
.~ q._~: . UN Capital Development
Fund (UNCDF) . UN Development
Programme (UNDP) ~. ._~:.~
~ _., . ._ ~. q . .:.:.~q . q
.~ q. :.~: _., .:. q . ._~.
~,..:..~e: ~q..~ ,.~~
~. . :. q .,_. ..~: . e _e .. ~~ ~
.q.qq.....~:.~._. .~
.~q.|~e''e UNCDF -_:
.q..|,~~: Henri Dommel .
..~~ .._~.~,..:..~...
.e~~~ ..: ...:~~ ~:.
. ~ . .~ . ~. .|~e ''e , .~ .
._ .:._ . ~. .|.. .:. . :.._
_:.q.~_~:. ~.~~.:..q,
~~~ ~.~:.q._.,q:.:.~:.
._ . .:~ _.:.._~: . , .. ._.:
although research also suggests
LIuL hnuncIuI servIces und
products currently available do
not meet the needs of potential
Despite a relatively high level of
InIormuI suvIngs - 1o percenL oI
respondents said they have sav-
ings in gold, livestock or cash
under LIe bed - neurIy Lwo-
thirds of respondents (62 per-
cent) said they dont save at all.
Even with a fully functioning
hnuncIuI sysLem, LIIs uecLs LIe
ability of the country to mobi-
lise national savings for growth
and development, the UN agen-
cy said.
The report revealed that
business costs are high due
to the largely cash-based
nature of the economy
and the market is further
weighed down by regula-
tions and numerous curbs
on credit operations and
use of largely paper-based
banking systems.
A muIIuncLIonIng hnun-
cial system and the lack of
access to service providers
have contributed to high
usage of informal credit
services in Myanmar, the
study said.
The research also showed
that 95 percent of the adult
population earns less than $10
per day, suggesting the majority
oI LIe popuIuLIon wouId benehL
Irom LIe spreud oI mIcrohnunce
services at the grassroots level.
The study analysed the poten-
LIuI Lo enIunce hnuncIuI IncIu-
sion as the countrys economic
reforms take hold.
TIe hndIngs oI LIe sLudy wIII
enable government, investors
and international donors to
Iocus eorLs on ureus LIuL wIII
ensure that the largest numbers
oI peopIe benehL Irom LIe use
oI reguIuLed hnuncIuI servIces,
UNCDF said in a statement.
The UN agency said this re-
port will assist the government
in developing policy and setting
out its priorities for promoting
hnuncIuI IncIusIon In LIe sIorL,
medium and long-term, and in
attracting development part-
ners Lo ussIsL In specIhc ureus oI
hnuncIuI or oLIer need.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
Major Oil Traders Eye Growth in Myanmar Fuel Demand
wo of the worlds largest
oil traders are investing
in Myanmars fuel-dis-
tribution sector, aiming to cash
in its small but rapidly growing
market for transport fuel.
While many major interna-
tional energy companies have
signed deals to explore for
oil and gas in Myanmar since
2010, when its military leaders
started introducing political re-
forms after decades of hard-line
rule, its downstream fuel-dis-
tribution sector is undeveloped
and so far has attracted little
foreign investment.
Myanmars economy and
transport infrastructure are
among the most underdevel-
oped in Asia, but vehicle owner-
ship is growing rapidly, as are
Lrumc jums In LIe sLreeLs oI LIe
capital, Yangon, and the need
for fuel.
Vitol Group SA, the worlds
largest independent oil trader,
und Truhguru BeIeer BV, LIe
worlds third-largest independ-
ent oil trader, are among those
that have made recent invest-
ments or are considering doing
Myunmur uses onIy ,ooo Lo
40,000 barrels of oil products
a day, despite having a popula-
tion of some 55 million. By com-
parison, neighboring Thailand
uses around one million barrels
a day, despite having only 10
million more inhabitants.
The investments in Myan-
mars fuel-distribution sector
come at a time when growing
competition in fuel markets,
spurred by new rehnerIes In LIe
Middle East and a stream of ex-
ports from the US, is increasing
Eric Yep
A Camaro sports car seIIing for $11U,UUU is seen inside a new ChevroIet deaIership in Yangon. Myanmar`s demand for trans-
port fuel is small but growing rapidly.
the attraction of frontier mar-
Truhguru umIIuLe Pumu En-
ergy, working with local part-
ner Asia Sun, is building an
80,000-cubic-meter import-
and-storage facility for gasoline,
diesel and a petroleum product
called bitumen at Thilawa on
LIe Yungon RIver, u Truhguru
spokesperson said. The storage
facility should be ready next
year, and the company may fur-
ther invest in Myanmars fuel
supply chain as opportunities
arise, the spokesperson said.
Puma Energy, 49 percent
owned by Truhguru, uIreudy Ius
extensive fuel-supply opera-
tions across Europe, the Ameri-
cas, Africa and elsewhere. Last
year Puma became Australias
largest independent fuel retailer
through a series of acquisitions.
I ts other stakeholders include
Angolan state oil company So-
Truhguru wouIdn`L suy Iow
much the Thilawa terminal will
cost, but industry experts esti-
mate such a facility would likely
cost up to $65 million, exclud-
ing auxiliary construction work
in the rest of the port.
Vitol is planning a similar
We are in the midst of con-
cluding a joint venture with a
local partner for the construc-
tion of a fuel-import terminal
for gasoline and diesel in the
Yangon area, said J asper Sch-
meetz, commercial manager for
VTTI Asia. VTTI Asia is a unit
of Vitol Tank Terminals I nter-
national BV, itself owned by
Vitol and MI SC Bhd., a Malay-
sia-based shipping group. He
declined to give further details.
Myanmars demand for oil
products is expected to reach
the equivalent of 60,000 bar-
rels a day by 2020, assuming
economic growth of 6 to 7 per-
cent a year, said Sushant Gupta,
an analyst at energy consultan-
cy Wood Mackenzie.
Only half of present demand
can be met by Myanmars three
smuII rehnerIes, Lwo oI wIIcI
are around 60 years old. I m-
ports of 10,000 to 15,000 bar-
rels a day of diesel and gasoline,
and an equal volume of jet fuel
every month, come from Sin-
gapore where suppliers include
HIn eong, VILoI und Truhguru,
and from Thailands PTT.
Plans by Chinese companies
Lo buIId rehnerIes In Myunmur
havent advanced, and neither
has construction of a large re-


Sri Lanka Targets $2b in
FDI Again for 2014
ri Lanka has set a $2 bil-
lion foreign direct invest-
ment (FDI ) goal this year,
its investment minister said,
though it failed to meet that tar-
get for two years in a row.
The $67-billion economy
failed to achieve its ambitious
FDI targets partly due to in-
consistent investment policies
amid allegations by investors
over corruption, lack of good
governance and the govern-
ments failure to address hu-
man rights violations in line
with UN resolutions.
However, the country still
attracted some select FDI to
mainly its tourism industry due
Ranga Sirilal to optimism after the end of a
26-year war in May 2009.
D In LIe hrsL quurLer oI LIIs
year more than doubled to $442
million compared with the
same period a year earlier, data
released on Thursday showed.
Lakshman Yapa Abeywarde-
na, the investment promotion
minister, said that despite neg-
ative publicity the country was
able to draw 100 percent more
D In LIe hrsL quurLer oI zo1q.
This year, we will be able to
get at least $2 billion, Abey-
wardena told reporters in Co-
FDI edged up 4 percent to
$1.q bIIIIon IusL yeur, Irom
$1.q bIIIIon LIe prevIous yeur.
The I ndian Ocean island nation
had aimed to secure $2 billion
each in both years.
Sri Lanka has seen economic
growth average more than 7.4
percent in the last four years
LIrougI zo1, buL LIuL Ius noL
attracted foreign investors to
it as an investment destination
because growth was mainly
fuelled by state-led massive in-
IrusLrucLure projecLs hnunced
by foreign commercial loans.
Abeywardena said the country
needs at least $4 billion in for-
eign investments to sustain 8
percent economic growth.
Sri Lankas investment poli-
cies have been under criticism
after the government re-nation-
alised some privatised ventures,
Look over ; prIvuLe hrms, cIL-
ing they had underperformed,
and reversed a key investment
after the deal was signed.
hnery proposed by PTT, wIIcI
if it went ahead could turn the
country into a net exporter of
rehned IueI. Wood MuckenzIe
doesn`L expecL uny new rehnery
to be built before the end of this
Meanwhile, investors are bank-
ing on the transport sector to
drive their business. The passen-
ger-vehicle market expanded by
uImosL 6o% Lo uround 8,ooo
curs In LIe hve yeurs up Lo hscuI
yeur zo1-1q, wIIIe LIe number
of light and heavy trucks doubled
to 125,000 in the same period,
highlighting the growth in indus-
trial activity.
There are currently six cars
for every 1,000 Myanmar citi-
zens, compared with 14 per
1,000 Vietnamese and 270 per
1,000 Thais, said analyst Shine
Zaw-Aung at consultancy New
Crossroads Asia in Singapore.
..: .:. . ~. . ~ _ . .:..:
._ _.,.:.~ ~.:~_~...
..: .:. ~ . ~ ~. . ~ _ ., .:
..:.:_e,_e.~_~ q..._...
q, ..:.,..~q._~:. .q._.
.:._.. . . _. ..,:~ . . _., .:.
._ _._~.q .q,..:~.:~
.~..e:.q.~~~ ..:~.:..
.:........:._. ..:.:.
_e,_e..~_._ e_e.~.~~..q
. _.:.q .. ._. . . . . :._ . ,_ ..|.
.,.._. ~:q~~~ _.,.:.
._ . .. :..q.. ~ .., . .q: .~e .q.
~._..~..:~~~.:.._ e_e..
~,_..._e..,.....:._. ..:
.~: e: . . . ._ . _ ., . :
~ .~~.:...:._~:..: .:. .
...:~..:. _~.~.,q._.
.q.~:~.,_e e...~~.
. _.:.q .. ._. . . . . ~..q ~, ..'.:
...e qqq, q_.,.:.._~:.
,.q..._....~,_~.. ._.:_~:.._..
~..|~,e..: .,.._ ....
~~_.~ q_.,.._.._e.._.
~..q~,..'.: ' .eq._
...:..q.._ ,.-_..:.._ FDI
q_.,..~~:. .q:~qq, .e..,
q_. .. : q .. ._. . . . .:.- .: ..
.:. .~:..,._ ~....q..q..
~. .q-. ~. ~.q.. ..e:~ .
~~ ~ UN ._eq..~~..' ..
Sri Ianka attracted some seIect FBI to mainIy its tourism industry due to optimism
after the end of a 2-year war in May 2UU9.
June 5-11, 2014
Myanmar Business Today
Malaysias IHH Aims to Expand in Myanmar,
Vietnam and China
alaysias I HH Health-
care Bhd, the worlds
second-largest hospi-
tal operator by market value, is
IookIng Lo muke ILs hrsL Ioruy
into Myanmar as well as expand
further in China and Vietnam,
its chief executive said.
I HHs primary focus of expan-
sion is emerging markets, CEO
Tan See Leng told Reuters in
an interview, as it looks to rep-
licate the success it has had in
I ndia and Turkey.
I HH, the healthcare arm of
Malaysian state investor Khaz-
anah , has expanded aggres-
sively since its J uly 2012 listing
and counts Singapore hospital
operator Parkway Holdings,
Turkish hospital group Aciba-
dem AS and I ndias Apollo Hos-
pitals Enterprise Ltd among its
overseas assets.
The company has added over
,ooo beds sInce ILs IIsLIng In
and now has nearly 9,000, said
Strong growth potential, im-
Yantoultra Ngui proved cusI ows und Iowered
debt levels have sent its stock
soaring nearly 50 percent since
its market debut. I t now has a
market value of around $10.5
bIIIIon, IuggIng onIy US hrm
HCA Holdings I nc among hos-
pital operators.
But high labour and other
running costs for the business
Iuve weIgIed on prohLs und In
LIe hrsL quurLer IL mude jusL 1q
million ringgit ($49 million),
though that was up 25 percent
from the same period a year
Tan added that other key mar-
kets for expansion include My-
anmar and Vietnam and that
the company will explore both
organic growth and acquisition
We are looking at Myanmar...
we are looking at sites in Hanoi
and in Myanmar itself, we look
at Yangon, Mandalay, he said.
The other thing that we are
starting to now explore poten-
tially would be Cambodia, but I
think Cambodia still a bit early
for us.
He added that I ndonesias
economic growth was also at-
tractive and that the company
may look at opportunities in
some of the countrys bigger cit-
ies, although attracting quali-
hed sLu In ndonesIu wus noL
that easy.
He declined to comment on
reports that the company had
been interested but had now
turned cool on bidding for
Australian hospital operator
One particular focus will be
China now that Beijing is mov-
ing to ease curbs on foreign
investment in joint-venture
hospitals in a bid to improve its
healthcare system, he said.
With almost eight years of op-
erating in China, Tan said I HH
is well poised to capture growth
in the industry, for which an-
nual healthcare spending is ex-
pected to triple to $1trillion by
2020, according to consulting
hrm McKInsey.
We have also built guan xi
or relationship and networks
wILI dIerenL munIcIpuIILIes,
authorities, and understand the
licensing of their approvals,
said Tan, who took the helm of
I HH in J anuary. Reuters
....q:.- ~.:.~e~_~...
...,..,. IHH Healthcare Bhd
~.,_e _., .:. ~:. . ~ ~ .:..~
q _.. ~,~. -e~,...:...|
..q, ....:.~q._~:.
. ._.:_~:..._.
IHH - ..q_.,..~.: e_e..
...~~.:.~ .q,_e.._~:.
CEO Tan See Leng u Reuters .
,.~.,_e ~.e. ~q~~ qq
. ._ .~: _. . . ...: . , ..~ q ._ .
....q :.. q .. ._. . . . Khazanah
- ~,..:.q...,.~.._e.._
IHH~.,_e ~~ ~.. .~~:
...~~..,_e._e._.. .~:.
...,..,. Parkway Holdings
~q~...,..,.~.. Acibadem
AS . ~.e- Apollo Hospitals
Enterprise Ltd ~.|~._.
Myanmar Summary
MaIaysia's IHH HeaIthcare Bhd is eyeing tap Myanmar's underdeveIoped heaIth-
care sector.
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Investing in Myanmar: Balancing Risk and Reward (Part II)
Although quite involved and not inexpensive, the process of investment in Myanmar can be very rewarding
n Part I of this article, we re-
viewed the Myanmar invest-
ment considerations of a US
investor as they are impacted by
US legislation and practice. This
article continues the analysis by
examining the on-the-ground
investment considerations in
Myanmar, including its For-
eign Direct I nvestment Law of
2012 (FDI ) and Foreign Direct
I nvestment Rules of J anuary
zo1 (R), bunkIng Issues, und
other aspects of investment.
I nvestment secur i ty
TIe D Ius specIhc provI-
sions that protect foreign in-
vestment from nationalization
and guarantees repatriation of
prohLs und securILy oI InvesLed
capital. These protections are
in addition to the guarantees an
InvesLor muy hnd In LIe seven
bilateral treaties Myanmar has
with other countries (Thailand,
Laos, Vietnam, Philippines,
China, Kuwait and India). Simi-
lar investor protection provi-
sions can be found in the newly
enacted Myanmar Special Eco-
nomic Zones Law, which is ap-
plicable in the three Special
Economic Zones (Dawei, Thila-
wa and Kyauk Phyu).
Additionally, Myanmar re-
cently became a full member
of World Banks MIGA, which
makes direct foreign invest-
ment into Myanmar eligible
for the agencys investment
guarantees (e.g. covered risks
include expropriation, breach
of contract, transfer restric-
LIon, IuIIure Lo Ionor hnuncIuI
obligations, or war/civil distur-
bance). Furthermore, Ameri-
can businesses which desire to
make investments in Myanmar
sourced with US manufactured
goods or services can also avail
themselves of limited facilities
extended by the US ExIm Bank,
including limited short and me-
dium term lending and invest-
ment insurance. Additionally, it
is expected that OPIC will soon
start a program for Myanmar-
bound US investors.
For m and functi on
Once the issue of security of
its investment is resolved, a
US investor must choose the
right corporate form for its in-
vestment vehicle. A number
of questions need to be asked:
How will the Myanmar entity
(public or private limited liabil-
ity company, or a branch) relate
Eric Rose & Nina Dunn
to the investors other invest-
ments? Is 100 percent foreign
ownership the only means of
investment, or is seeking a suit-
able local partner an option?
Legal barriers contained in
the FDI and the FIR will require
that the foreign investor peti-
tion the Myanmar Investment
Commission (MIC) for a permit
and for an exemption from the
FIR limitations that prohibit,
for example, the operation of
foreign-controlled businesses
in certain business activities
reserved to either state-owned
enterprises, or to Myanmar citi-
zens. The MIC Permit will al-
low the newly formed Myanmar
subsidiary to import duty-free
IoreIgn ruw und hnIsIed muLe-
rials for its project, will exempt
IL Ior up Lo hve yeurs oI Income
taxes, and allow it to lease land
for at least 50 years (as of today,
foreign entities, or their Myan-
mar subsidiaries, are otherwise
prohibited from owning or leas-
ing long-term land or build-
ings, a very distinctive disad-
vantage to foreign investment).
Foreign-controlled Myanmar
businesses have to project what
areas of business they intend to
operate in at the outset, thus a
clear outline of their intended
activities has to be provided to
the MIC as well as to the Min-
istry of Plannings Department
of Investments and Corpora-
tions Administration (DICA)
in seeking exceptions from the
FIR prohibitions, as well as pe-
titioning for the grant of an MIC
Permit and a Permit to Trade,
A local par tner and a ca-
pable bank
Assuming that a Myanmar
partner is required, the US in-
vestor has to do three things
before starting any registration
process: conduct a thorough
due diligence investigation into
the background of the poten-
tial Myanmar partner; submit
a prospective name of the My-
anmar business for preliminary
approval by the Companies
RegIsLruLIon Omce (CRO); und
discuss with its U.S. bank the
prospective investment in My-
Doing the preliminary inves-
tigation of the Myanmar part-
ner is a critical step in order
to reduce any chance that the
partner has OFAC SDN connec-
tions (see Part 1 of this article,
which was published last week,
for a more in-depth discussion
of this aspect). Choosing the
name is an important factor, as
registrations of trademarks and
trade-names in Myanmar are
essential to protect oneself from
copycats. Although the country
does not yet have a comprehen-
sive IPR legal system, it does
have a procedure for register-
ing trademarks. Talking with
your banker is a prudent initial
step because very few US bank-
ers will conduct business with
Myanmar or its banks or com-
panies. The ability to repatri-
uLe prohLs wouId be oI IImILed
value without a banking rela-
tionship capable of undertaking
such transactions or without
knowIedge oI uvuIIubIe osIore
solutions. It goes without say-
ing that due diligence should
also be performed on any local
Myanmar bank to be used. The
local banks may or not be on
the SDN list, and/or have the
sophistication and capital to be
able to assist the US investor.
Eric Rose is the Lead Direc-
tor of Herzfeld Rubin Meyer
& Rose, the jrst US lcu jrm
in Myanmar. He focuses on
the global aspects of business
detelopment, specijccll in-
cluding mergers, acquisitions,
privatisations, technology
transfers, compliance counsel-
ling, and international com-
mercial transactions. His expe-
rience in Myanmar spans over
twenty years.
Nina Dunn, who is an ad-
viser to Herzfeld Rubin Meyer
& Rose, has more than twenty-
jte ecrs oj experience in in-
ternational trade and invest-
ment, securities and defence
and national security matters.
She hcs cdtised domestic cnd
international corporations
with respect to a wide range of
corporate issues, achieving fa-
vourable results from govern-
ment agencies, including the
The article was originally
published on InsideCounsel.
com and has been republished
with the authors and publica-
tions permission.
e...:..|.-....~ ~..
~~.,_e _.,.:.- q..._....
~._.~.,~:. ~..q~, q..._...
. ~. .~.,_e . ... _. ._e. _. .
~..q~, .... ~....:.~:.
_., .:. ~ q .. ._. . . . .:.~:.
~........~: ~~ ... .
_.:.~ ~ , ~ q .. ._. . . . (FDI, ...
. ~~, ~,,~|q ._.:.~~,~
q .. ._. . . . ,_ .... (FDR) ~
. . , .. ~_.:.q..._.....q:
~._~:.~q:.:.~:. .q..:..:.
FDI ~.,_e ._.:.q..._....
.:.~:. _._....._... ~~:
~~ e ...:._. . q .. ._. . . ._ . q .
- ._..q.. .._~...e_..
~~ ~ ~:.. .... . :..|~ ._ .
~. .|~~:~~ e .:.~_. q .. ._. . .
..:.~.,_e _.,.:.. ~_.:.
..:. . .:~ -e~,.
e... ~,~ ~~~. ~.e,
. ...:.._ ..:~_.~
.,...:.| ~:...~.:. qq.__e.
.:.~:. ~...._._:,..~._
_ ., .:~ .. .. :..q.~ , ...~
.~q_.. ~..|...~.,_e ~.
. .. :..q.~ , .:._e. ._ :.~e . .~|
. .~:~ _e~ ~:. ~~ ..~ .q:~
~_. _., .:. ._ ._~:. ~.
~. : ~ MIGA ~ ~ ._._ ~e ~
_e..:_.. _.,.:.~.,_e ._.:.
~ ~ q .q .. ._. . . . .:.~..'~
. . . e . , . .:.. e~ . . .. ~ .~.
.. .._~.~.~~. _._~...
.._~~~~ ~:...:. ...~.q
.__e.._. ~_. _.,.:.~
q..._.....:._....._ ~..q
~, . . :..q.. . , ..:.~.,_e ~..q
~, US ExImBank . ..~ ..q_
...._.. q..._.... ~:..:.q
_...:. _.....__e.._. _.,.:
. . e~ .. . . ~ .,._ q .. ._. . .
. .:.~~~ OPIC . ~.~.~..
.~.__e.._~:. .qq._.
, .q .. ._. . . . - . _ . .q.~:.
..:q~_..._.,:~~ ~..q
~, q..._....~.,_e ,.-
q .. ._. . . . ~~ ~ . , ~, ._ . ...| .
..:q~._.~:. .q..eq.__e.

Myanmar recently became

a full member of World
Banks MIGA, which makes
direct foreign investment
into Myanmar eligible for the
agencys investment guarantees.
Bowntown Yangon. AIthough quite invoIved and not inexpensive, the process of investment in Myanmar can be very reward-

June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Contd. P z...(Patience)
_., .:. .q .,.:.~ , e~ (MLN)
~.,_e ~. .q-. . ~~.~. q,
~ , _. .e q .q ..e: .~.. ~. . ~
..:~ ~ ~:.e ~e . . ~ , .~_e.
._ _e. ._~: .~. .|~ , e~ . ~.
Patience, Logistics And Law in Yangon: Why Fortune
Will Favour The Brave in Asias Final Real Estate Frontier
ollowing three years
of constant chat-
ter and speculation
about Myanmar being the
hnuI IronLIer In AsIun reuI
esLuLe, hnuIIy mude IL Lo
Yangon to attend the sec-
ond Real Estate and Ur-
ban Build Platform con-
There was plenty of talk
at the two-day confer-
ence about the potential
of property investment in
Yangon and elsewhere, al-
Terry Blackburn though it is clear there is
still a long way to go for
foreign investors. The key
presentation on day one
was from a member of the
government on the new
condomInIum Iuw - unLII
this is passed, there is lit-
erally no way for foreign-
ers to legally own prop-
erty in the country.
The Ministry of Con-
struction representative
who gave the presenta-
tion was admirably open
to suggestions from the
deIeguLes on hne-LunIng
the bill, primarily in-
spired by the Singapore
condo law, but this would
suggest it is still some way
o und LIe cIunce oI uny-
thing emerging this year
is rather remote.
One key aspect of the
bill will be the restrictions
on foreigners buying any-
LIIng beIow LIe hILI oor.
Whilst this seem perplex-
ing to some, my host in
the country, Brett Miller,
managing director of
Scipio Services, reckoned
it was to prevent locals
from being pushed out of
Yangons many low-rise
properties should a boom
come to town.
Years ago, Phnom Penh
was considered to be the
next gold rush town for
ASEAN property. Yet this
never really materialised;
primarily due to the lack
of strong economic fun-
damentals, foreign inter-
est and enough locals with
cash to transform Cambo-
dia from an aid-depend-
ent economy. Whilst su-
perhcIuIIy sImIIur Lo LIe
Cambodian capital with
its downtown colonial
relics (it will be interest-
ing to see if all the talk
of renovation rather than
replacement comes to
pass in the former British
colony), Yangon is a com-
pIeLeIy dIerenL propo-
sition. Theres plenty of
cash around, although
most of it is currently in
the hands of a tiny minor-
ity, and the massive de-
mand has already pushed
rents and land prices up
to astronomical levels.
Miller and Scipio are
currently renovating
LIe York CenLre - u ;os
block, which previously
acted as the headquar-
Lers oI Duewoo - InLo u
contemporary space with
1oo squure meLre omces
going for a minimum of
Lawyers Plan to Sue Govt, Firm for
Turning Heritage Building into Hotel
yanmar Lawyers Net-
work (MLN) is plan-
ning to sue the gov-
ernment and a private company
for developing a hotel project
at a heritage building in down-
town Yangon, MLN executive
Soe Tint Yi said at a protest last
About 200 lawyers took part
in the protest.
Criticising the government for
lack of transparency, U Soe Tint
YI, suId LIe neLwork wIII hIe u
lawsuit against the Chairman of
the Myanmar Investment Com-
mission and the private com-
Located at the heart of the
commercial city and overlook-
ing the Yangon River, the 90-
year old building used to house
the Yangon Division Court and
township courts till 2012. The
May Soe San Second Parliament Meeting
was held in that building after
Myanmar won independence
from the British in 1948.
Negotiating with Minister at
LIe PresIdenL`s Omce U Soe
Thane, the network demanded
preservation of the historical
building rather than leasing it
as a hotel in order to maintain
the integrity of the country, say-
ing that the architecture of the
building is just for a court.
Township courts and the
Yangon Divisional Court were
reportedly forced to vacate the
building in early 2012.
..: . .~ q . ._.:_~:.. ._ .
.:~ _ .. ~ .. .~ q . , .~ -
~ , e~ ~.,_e _., .:. q .. ._. . . .
.~:.q...~~ . ~ .:.~:.~
q:.. . . :.._ _e. ._~: . . q._ .
q, ~ , _.. ~:..~ . :. .~ q ._ . .
~.~ ~. .q ._ ~. .|q, ~ , . ..| .
q ..:.~_e. ~~. . . ~ ~. ._..
_. ._e. ._ .~. .|q ._~ .~:._., .:
._ ~, ~ . ~ .~: .. ... .. .:.
~ ... ._ .
With many multinationals currently camping out in dilapidated condo units, demand will inevitably be
high for such ofce space.

June 5-11, 2014
Myanmar Business Today
Myanmar Summary
From page z...(Patience)
China Tourist Sites Beat Cities in Accor Expansion Focus
Six new hotels in the pipeline for Myanmar
ccor SA will build about
a third of its 100 planned
Chinese hotels in tourist
destinations as rising wealth in
the country leads to growing
leisure travel and oversupply in
cILIes depresses room LurIs.
Domestic tourism in the
country is growing at a rate
of knots, Michael Issenberg,
cIuIrmun oI Accor AsIu-PucIhc
region, said in an interview.
Thats making tourist spots
more attractive than many ur-
ban sites, he said.
If people acquire wealth, they
want to travel, Issenberg said.
Thats been the big change.
Even hve yeurs ugo, IL wus uII
Europes largest hotel opera-
tor has already opened sites on
ski slopes near the North Ko-
rean border, a beach resort on
tropical Hainan island, and
a central Chinese forest park
among its 128 hotels in the
country. Thatll help it capital-
ise on domestic tourist trips
that are forecast to grow by
about 11 percent a year between
zo1 und zo18, uccordIng Lo
data from Euromonitor Inter-
Other international leisure
companies are also targeting
Chinas domestic tourist mar-
ket. Carnival Corp will dispatch
a fourth cruise ship for the
country next April and Walt
Disney Co plans to open a $5.5
billion theme park resort in
Shanghai during 2015.
Hennes & Mauritz AB (HMB),
the Swedish fashion chain, has
opened a store in Zhangjiajie,
which serves central Hunan
provinces scenic Wulingyuan
national park. The town is also
home to an Accor Pullman hotel.
David Fickling
A doorman waits to greet guests at the main door of the Best Western HoteI in southeastern Beijing, China.

Lar gest Mar ket
China overtook Germany in
2012 to become the largest
outbound tourism market, ac-
cording to the United Nations
World Tourism Organization.
International spending by Chi-
nese travellers rose 26 percent
durIng zo1 Lo $1zq bIIIIon, LIe
agency said May 14.
Expansion by domestic and
international companies in Chi-
na has slowed some hotel op-
erators ability to increase room
At InterContinental Hotels
Group (IHG) revenue per avail-
able room in Greater China rose
just 0.7 percent from a year ear-
IIer In LIe LIIrd quurLer oI zo1,
uccordIng Lo compuny hIIngs.
Hotels in the densely populat-
ed eusL oI CIInu hIIed ubouL 6q
percent of rooms during April.
That compares with occupancy
rates of about 70 percent in Ac-
cors economy hotels globally
and 68 percent in its upper- and
mid-market locations during
zo1, uccordIng Lo u compuny
presentation in January.
Chr oni c Over supply and
The oversupply can be chron-
ic if things keep getting built,
but if the supply even starts to
moderate, demand will catch
up, Issenberg said.
If you ask anybody, If you
had more time or money what
would you do? almost every-
body says travel.
The chain is also building six
new hotels in Myanmar amid
rising foreign investment in the
counLry, Ie suId. A hrsL sILe wIII
open this month in the capital
Nay Pyi Taw with others to fol-
low in Yangon and the scenic
Inle Lake.
Setting up credit-card pay-
ment networks, getting insur-
ance and training workers in
hygiene is still a challenge in a
country that has little experi-
ence with tourism, he said.
Myunmur Iud ubouL 6,1;;
tourist arrivals during August
zo1, LIe mosL recenL monLI
for which data compiled by
Bloomberg is available, com-
pared with 2.4 million during
the same month in neighbour-
ing Thailand.
I went in December, and a
hotel we were visiting had an
ATM machine and was really
excited about it, Issenberg said
referring to Myanmar.
That tells you the state of the
country, that this is big news
that you can actually get cash.
Myanmar Summary
Accor SA ~.,_e ,.-~. ~.
~~. ~,~e~e~.. ~~~ .
. .. ~. . ~:. . -.q.. :.. ..:
q:.,q:.:.~ ~_..:~_..~:.
_e . -. .. :..q.e _e .. ~:. _. ~
~: _..:.q ~.,..~..~.:.~:.
_e_._......__e.._~:. ~
~~ ~ .: .:.. :_ . .:..:._ ~: .
Accor Asia-Pacifc ...~ _ Michael
Issenberg ~ ~~:-.~..~
._.:_~:.. ._ . . e ~e .:...:~
.._..~:._e .q..:....:._
....:. ._ ~_.:. .,q:.:. ~
.q.. :..:.~:. .....:..__e.
._e._. ,.. ._.:_~:..._.
.q:.-~_~ .. .e ~e . . , ._e.
._ ~..|~.~~.,_e ~,~
.~.~..~ e~e..|. ~ .
e..:._.. ._.:~~q.e:.,e..
~, . . ...:. ..,q:~. . e ,, ~, .
q ~. .._.~., .._e.., .~. . . ~, ~
. ~.e . .~ q ._ .. .~:
e: ~ ~.|~~ _e. ._ .Euromonitor
International - ...:..:.~q
~, ~ . -_._ ~ ..q .. :..:. .:.
._ ~~, . ~~ ~~. ~...
. ~~ q:. . , .~ .~~ .:. ._~: .
~_ .:.~_ ._ _ ._ . q: ~., .._ e
~ . ~ .:.~.,_e ._ . ~, ~ . -
_ ._ ~ .~., .._ e.q .. :... .~ ~
~:. ~:,.~.~q._. Carnival
Corp ~.,_e .:._ -_..~
, .-.~ ~ ._.:~ .q .. :...: ~:.
...~.__e._.. Walt Disney Co
.._. ~~ ...~~. q,e.~
~..q~,..'.: ... .e
~, ~.,.._e~.:.~. e..q,
$,oo per monLI. WILI
many multinationals cur-
rently camping out in
dilapidated condo units,
demand will inevitably be
IIgI Ior sucI omce spuce.
Unlike Phnom Penh, and
other frontier markets, it
takes more than a pocket
full of cash and a sharp
suit to get into Myanmars
real estate industry. It
would appear that a keen
undersLundIng oI LIe hner
points of logistics is es-
Brett and his partners
worked together previ-
ously in security in East
Timor, while his facility
management guy is an ex-
marine, fresh from run-
ning logistics and supply
chains in Camp Leather-
neck in Afghanistan. They
are all young, smart, en-
thusiastic and extremely
patient. Yangon is not the
wild east and the mantra
of anything goes and any-
thing can be bought at a
price does not play well
here. Try buying prop-
erty through a proxy and
youll most likely lose
it or certainly be stuck
wILI IL IndehnILeIy wIen
the condo law comes in.
Building anything, selling
anything and servicing
anything is a tricky busi-
ness and requires lots of
contacts, planning and
patience. Hence Timor
and Afghanistan, rather
than Singapore and Hong
Kong, are better places to
cut your teeth if you want
to get into business in
In Millers case, as a US
citizen, it also means not
doing business with the
hundred or so ex-gener-
als and drug lords that
are still on the US sanc-
tion list, several of whom
have now moved into real
estate. If he does, hell
risk going to prison back
home. Small details like
that probably help to keep
the focus on playing by
the rules.
Things happen fast in
Southeast Asia. Desirable
areas emerge almost over-
night and entire neigh-
bourhoods can be trans-
formed. Take Bangkoks
hippest neighbourhood,
Thong Lor. Ten years ago
it was on nobodys radar,
but is now one of the citys
most sophisticated drink-
ing and dining spots. Ar-
eas of Yangon are sure to
undergo similar transfor-
mations and those, like
Miller and his partners,
who were willing to take
the plunge, are clearly on
the cusp of something big.
orLune wIII dehnILeIy
favour the brave in Myan-
Terry Blackburn is CEO
of Ensign Media and pub-
lisher of Property Report.
TIe urLIcIe hrsL uppeured
in Property Report web-
_.,.:.e: ~:q ~. _.
._....~~- .,:~...~
~,...~~~..~_e. ....
_~:...:_...,:~~ ..
~.,_e .~e~_~. ~.
_.._.. _._.~_..:~.q.
.. . .. . . ~~ .q:~ q,
~~ ~ q, ~ , ~ .:.q:~ _e. .
~..| ..q~_~:.......
~ q,~,. ~_.:..,q:
.:.~ q..._....~~~
.:..: .......q_.. ~..|
~_~.,_e . _.:..:.q .. .
_.....:.~~~ .:..:~.,
e q .._ _e. ._~: . . q . ~ q
._. ..q~~~. ~..q
~e ~ ~. .. ~ .~ . :.
._ . : ~ , . . , e ..._e. _. .
~. .|...~q . _.:..:..:.
~.,_e _.,.:.~ ~q:.
..:~ . . .q.~, _ ~ ._:,
~ e .:.~ _.._ ~ e .:.. e
. . ~:. ~ , . ...~:. ~._..
._ ~. .|...~..'~
...: ~..| ~_~_..~.:.
._ . .~ .:.. :. ~. .~ q
.,_.. e...~~. ._._
~.~.q.. ..'~.:..
~:. |..:.~:~~..:.
~:. ~e e . ~, .~ :.._ .
~..|~.~._ ~.~:.
,.......:._. Scipio
Services - ...:,_~:.
.q... Brett Miller . ~..|
~.~ ._ _._ ~ .~e e . .:.
~:. q, ~ , - ~, e .,_ .~ . q:
.:.~:. ~e e _. .~:._e ...
_. ~~ ..._~: . ._.:_.. ._ .
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
Mercedes Allows Chinese to Peek Under Hood in Asia Growth Push
Chinese granted unprecedented access to new models
attling to catch up with
German rivals in China,
luxury carmaker Daimler
is shifting gears, giving local au-
thorities unprecedented access
to new Mercedes models and
even tailoring engines destined
for its home market to Chinese
For years, Daimler has lagged
Audi and BMW in the worlds
biggest car market. Last year,
Mercedes-Benz, the companys
premier luxury brand, sold
228,000 cars there, compared to
nearly 492,000 for Audi and over
6z,ooo Ior BMW.
For years, Daimler harboured
doubts over the sustainability
of growth in China. German la-
bour union resistance to shift-
ing production out of Daimlers
muIn IucLory In SIndeIhngen
also played a role.
Another key factor has been
Daimlers more cautious ap-
proach to sharing technological
know-how due to fears of piracy.
This prevented the company
from deepening its footprint in
China, where foreign automak-
ers are required to work with lo-
cal companies, at a time when its
rivals were going all-in.
Edward Taylor
Now LIIs Is cIungIng - In purL
because the Chinese have taken
steps to crack down on copy-
right violations, but also because
Daimler executives have realised
there is no alternative to closer
cooperation if they are to make
up lost ground in a market that
continues to post impressive
growth rates.
This year, Daimler is starting
production of its newest C-Class
in China as well as Germany, a
step-change for a manufacturer
that had previously delayed local
Chinese production of new mod-
els by months.
Beijing Benz Automotive
Co, the joint venture company
Daimler runs with Chinese
partner Beijing Automotive
Group Co, is also constructing
a new production line for the
compact GLA model.
Tranferring know-how
To get permission to build both
cars locally, they need to undergo
a 160,000 kilometre emission
durability test and a regulation
test with Chinese authorities.
These can take up to a year.
As part of this process, Mer-
cedes Is uIIowIng CIInese omcIuIs
to take samples of components
and make detailed measure-
ments of its newest cars.
To put it bluntly, we are trans-
ferring know-how, said Rene
Reif, head of engineering and
manufacturing at Beijing Benz.
Key battleground
Daimler only started making
Mercedes-Benz cars in China in
2006, reaching production ca-
pacity of 120,000 vehicles last
year. Audi, which has been mak-
ing cars there since 1988, sur-
passed that level in 2007.
Asia remains the key battle-
ground In DuImIer`s hgIL Lo re-
claim the crown of the top-selling
maker of luxury cars in the world.
The last time Mercedes held the
title was in 2004.
Last year, BMW led the pack
with 1.65 million units sold
worldwide. Audi was next at
1.57 million and Daimler in third
place, with 1.47 million Mer-
cedes-Benz branded cars sold.
Concerns that closer coopera-
tion might open the door to pi-
racy by Chinese manufacturers
have been mitigated by better
protections, says Thomas We-
ber, the Daimler board member
Hubertus Troska, member of the Board of Management of BaimIer AC responsi-
bIe for China presenting the new C-CIass as a Iong-wheeIbase version at the Auto
China 2U14.
Chinese-made Spare Parts
Rule Auto Market
in charge of research and devel-
Innovations that are intro-
duced late, are of no use, said
Weber. Reuters
heap Chinese-made spare
parts for Japanese auto-
mobIIes Iuve ooded Yun-
gons auto market, beating out
their pricier yet genuine counter-
parts, industry sources say.
The price gap between Chinese-
made and Japanese-made spare
parts could be tenfold, some-
times as high as 100 times, spare
parts shop owners at Yangons
Bayintnaung car market told My-
anmar Business Today.
A new Japanese-made engine
oII hILer Is Ko,ooo-o,ooo ($1-
z) buL u CIInese one Is K,ooo-
Htun Htun Minn 5,000, a spare parts shop owner
at Bayintnaung said.
The users usually opt for the
cheaper one.
Following the relaxation of im-
port regulations three years ago
and slash in custom taxes and
duties, Japanese automobiles
ooded Yungon`s rouds. As muny
as 250,000 cars came into the
country since mid-2011, accord-
ing Road Transport Authoritys
Some businessmen still im-
port Japanese-made accessories
but customers prefer cheaper
Chinese-made parts. Most of
the Japanese spare parts in the
market are old as imports have
slowed down, another shop
owner said.
However, traders say Japanese
spare parts imports will even-
tually pick up as there will be a
bIg gup Lo hII In Lerms oI suppIy
and demand amid an increasing
number of Japanese car imports.
Currently, theres little import
|oI Jupunese purLs| buL LIe mur-
ket will soon have a big demand.
Also, using cheap spare parts and
body accessories is bad for a car,
and cars become prone to more
accidents if the owners use sub-
standard parts, an automobile
engineer said.
Drivers using Chinese-made
car spare parts often face car mal-
function and accidents, a spokes-
person from Eaitsarthaya Auto-
mobile spare parts shop said.
Besides Chinese-made auto
spare parts, accessories from
Thailand, Indonesia, the Philip-
pines and India are also com-
mon, automobile market sources
Authorities also advise using
genuine automobile parts to in-
crease road safety. Vehicles from
Aung Mingalar Highway Ex-
press station are currently being
checked for authentic spare parts
by concerned omcers, u source
from Aung Mingalar Highway
Vehicle Control Department said.
_.,.:.~.~.._..,..: .,
. . . ~:..:.~~ ~ ~. . . , .q
.:.. ., ~:.~. .. _ .~ . .
.q:...,..:._. ....,.~:_.:.
.~._~: ~,~....._..:.~
.:~. ._..~ .,q._~: . q .,:
~:....e:~..._...:.. .q
~:.~. .. _ ....~ ~ ~ ., .
. . .. _ ..... , .. : ~, ~ . . .
.._.....,.~ ~~ . . ~.
~~~ ., ~:_.:..~q..:._~:
.._.~ee.~.:...: ....~.:
._ ~, ~ . . . .. _ ..:.~ ~. ._.
.,_. ._e. ._ e q .,: ~:.....
..q~..~ ._.:._.
e:~..._....~~~ .,
. . . ~ . . .:.~ ~. ._._ ~, ~
.~.:.~ . ~.,.q:.
e... ~.e.~.: .._..:.
~ . .. q ._~: . q .,: ~:....
. .q._.
~,~.~q._ :.,_.~
.:.~ e_.q, ~..~.q, ~..
~:..:.~...,._ Daimler
._ , .~ -.:. . .~:...: .e ~..
~ ~, ~ ~:~:. .:.~ .. .... _.
.~._e .q._.
.,.._...:.~ Daimler ._
Audi BMW ~.e_.q:~
.. : .. .. ._~: . .q._.Audi ._
e.,..~ ~:.~...q ,,~~~ .
BMW ._ ,',~~~ .q:....
._~.,~ Diamler ~ ~..
._ Mercedes-Benz . : ,~~~ ..
.: .q:...q._~:. .q._.
Diamler ._ Beijing Benz
Automotive~ . ~ . . ...| ._GLA
~:...:.e~..~ ~...~q
._. Diamler ._ Mercedes-
Benz ~:..:.~ ~,~...~~_
~~' . . . . .~ _.q: ... _. ._e. _. .
e...~ ~...q ~~,~~~ ~
.: ~ . . . . ..: ._ . ~ . . .
. .~~.q:~...: Audi ._
. . .:._.:...:..:~~:.~~...~
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
oogle Inc is building cars
that dont have steering
wheels, accelerator ped-
als or brake pedals, in an ambi-
tious expansion of the internet
compuny`s eorLs Lo deveIop seII-
driving cars.
The small electric cars, which
seat two passengers, are cur-
rently prototypes that Google has
been building through partner-
ships with automotive suppli-
ers and manufacturers, Google
co-founder Sergey Brin said at
the Code conference in Southern
Google aims to build up to 200
such cars in the near term and
hopes the vehicles will be avail-
able in various cities within a
couple of years, he said.
Google has been testing self-
driving cars since 2009, incorpo-
rating laser sensors and radars into
standard automobiles such as the
Prius from Toyota Motor Corp and
sport-utility vehicles from Toyota
luxury car division Lexus.
While those vehicles require a
human to remain in the drivers
seat and to take over in certain
situations, the new cars operate
completely autonomously.
Alexei Oreskovic
Google BuildingSelf-Driving Cars with
No Driver Seat, Steering Wheels
Brin said the cars could oper-
ate as a service, picking up pas-
sengers when summoned, and
poLenLIuIIy even operuLe us eeLs
of interconnected trains.
Ten seconds after getting in I
was doing my email, I had forgot-
ten I was there, Brin said of his
experience riding in one of the
pod-like vehicles, which resem-
ble a cross between a Smart car
and Volkswagen Beetle. It ulti-
mately reminded me of catching
a chairlift.
Brin declined to specify wheth-
er Google intended to build and
sell the cars itself, saying only
that the company would work
with partners.
The driverless cars are current-
ly limited to a maximum speed
of 25 miles (40 km) an hour, but
Brin said there was no reason the
cars could not go as fast as 100
miles an hour or more once they
had been proven to be safe.
The front of the cars contains
about 2 feet (61 cm) of foam and
the windshield is made out of
plastic instead of glass to make
the cars safer, he said.
Within a couple of years I hope
we will surpass the safety metrics
weve put in place, which is to be
sIgnIhcunLIy suIer LIun u Iumun
driver, and we will start testing
them without drivers and hope-
fully youll be able to utilise them
at some limited cities, Brin said.
A handful of US states, includ-
ing California and Nevada, have
passed legislation to allow test-
ing of self-driving cars on public
roads. Brin said he was optimis-
tic that the new, passenger-only
self-driving cars would be ap-
proved for testing in the US and
overseas in the future. Reuters
GM Engineer Said He Forgot Change to
Switch in Recalled Cars
suspended General Mo-
tors Co engineer who
worked on the defective
ignition switch at the heart of
a massive recall told congres-
sional investigators that he had
forgotten ordering a change to
LIe swILcI, wIen Ie LesLIhed In
a deposition last year, the New
York Times reported.
GM engineer Ray DeGiorgio
did not say anything to the con-
gressional investigators to sug-
gest that Chief Executive Mary
Barra knew about the defective
switch before she took the top
Aurindom Mukherjee and
Peter Henderson
job at the company this year, the
Times said, quoting people famil-
iar with the session.
DeGiorgio, who was suspended
by GM on April 10, designed the
swILcI Ior LIe zoo SuLurn on
and other models, including the
Chevrolet Cobalt, which have
been recuIIed. GM Ius IInked 1
deaths to accidents related to the
The defective switch was rede-
signed in 2006 without a change
to the part number, which later
confused investigators looking
into crashes of the now-recalled
cars. Congressional investigators
produced an internal GM docu-
ment showing DeGiorgio had
sIgned o on LIe cIunge In AprII
In a deposition last year for a
lawsuit related to a fatal 2010
crash in Georgia, DeGiorgio de-
nied that he knew of the change.
The New York Times reported
that he told congressional inves-
tigators recently that at the time
of the deposition, he had forgot-
ten about the change, because it
was part of a package of changes.
Car Battery Maker LG Chem to
Decide on Capacity Expansion
in 3 Months
outh Koreas LG Chem Ltd plans to make a decision on
expanding production capacity for electric vehicle (EV)
batteries in three to four months, expecting EV demand
Lo Luke o In zo16.
We are seriously considering investing in expanding (our EV
battery production), President Kwon Young-soo, who oversees
LG Chems battery division, said on Thursday at the Busan Mo-
tor Show.
He did not elaborate on where it plans to expand capacity.
LG Chem, which supplies batteries for cars from General Mo-
tors Co and Renault SA, has one EV battery plant in Korea and
another in the United States.
In February, Chief Executive Park Jin-soo said the company
was considering building an EV battery plant in China, expect-
Ing LIe CIInese governmenL`s eorLs Lo LuckIe uIr poIIuLIon
would drive demand. Reuters
Hyunjoo Jin
Google Inc ~.,_e .~e:~
q ~ ._., ..:. ..|~ ._ ..: .. .
~:..:. ~...~q._~:. .q
~e . e ., .e:._._ ,e .~: . .
~ _....._ Code conference
~ Googleco-founder Sergey Brin
. Google ~.,_e ..:.~:~:.
~ . . . .. _ .. . .. .:.. . ...| .
~: ....e:~.. ....~:.e
.:.~:. ~...~...~q._~:.
Google~.,_e ._~:. ~:.~~ .
~:.~.. ~~ ~...q, q_.,.
:._.. .:._ ..~,_.e~~.
~ ~..|~:..:.~:. _.~.~_.:.
~ ~.._..q, ..:..,._~:.
A man drives a CoogIe Inc. seIf-driving car in front of the company`s headquarters in Mountain View, CaIifornia, US.

Myanmar Summary
Myanmar Summary
General Motors Co . ._~:.~
.......e.,q._ ~..|~.~.
~ .e . q._ ~ , e:~:. .. ...
q:~ ,.~.,_e ~..|~:..:.
~~ ~ .. ~ ._.: .. q, ~. :.:....
q:~ .. ..: . ._~: . e. . . ~..
.....~ ~,..._e New York
Times .~..:. ._~_::.._.
GM ~,e: Ray DeGiorgio
. .......:.~:. e...~ ~.
..:~q:q..~.,_e ~:~,e.
._ Mary Barra ~.,_e e.~.
~:. ..~:~,e.~ .q_..q
.q ~:. ._.:_~:.. _. ..q ._~: . ~. .|
.~..:~ .e:_.:.._.
-_.. ~~ ~ GM . ~.e
_...q._ DeGiorgio . ~~,
Saturn Ion _.,._...e_...q
._ Chevrolet Cobalt ~.|~~
~_.:...:.e.:.~~~._. ..~
.~..:. .q...._e._.. GM ~.,
_e ~..|..~._~: . ~, .
..~:~.~ .....q_..~~~
.~:~q.e:.- LG ChemLtd ~.,_e .:._ .. ....~~.
....~:.~q~...~:.~._..__e._.. ~~' ~....
~:..q:.~:.~.~~.:q, .,.,.:.._.
~, .~: ~ ~.,, .. .. ~:.~ q ~ . . .q.. :. . q .. ._. . . e . .
_e~ :..|~e ''e ~. .| LG Chem-~q~...~:...:_~_
.,._ ~ _ Kwon Yong-soo . Busan Motor Show ~._.:_~:..
. ..: ._ ._ .,q:~ ._ . ~ .. ._ . ._ ~:., .. ~ .e: ._.:
_~:._. .._.. ...
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
Myanmar Summary
Yoma Boosts Myanmar Telco Tower Stake to 25pc
ingapore-based conglom-
erate Yoma Strategic
Holdings (YSH) said it has
ramped up its stake in its My-
anmar telecoms tower venture
hrm Irom 8 percenL Lo z per-
YSH Finance Ltd, a subsidiary
of Yoma, will now hold a quar-
ter stake in Digicel Asian Hold-
ings Pte Ltd while the rest will
be IeId by DIgIceI Group - u
LeIecoms hrm LIuL operuLes In
1 murkeLs In LIe CurIbbeun,
Central America and Asia Pa-
cIhc und Is bucked by rIsI bII-
lionaire Denis OBrien.
YSH Finance Ltd is 80 per-
cent owned by Yoma Strategic
and 20 percent by First Myan-
mar Investment Co Ltd (FMI),
un umIIuLe oI Yomu SLruLegIc.
YSH Finance had subscribed
for an additional 420,000 new
sIures - represenLIng 1; per-
cenL InLeresL - In DIgIceI AsIun
HoIdIngs Ior $qz;,. TIIs
was funded in cash from Yo-
mas placement proceeds raised
in November 2012.
Phyu Thit Lwin
Yomu suId IL wouId benehL
from partnering Digicel Group,
given the latters experience
and investment in the telco
tower company business.
TIe LeIco Lower hrm suId IL In-
tends to roll out telecommuni-
cations towers across Myanmar
as the country seeks to rapidly
increase mobile phone penetra-
tion following the award of two
mobile telecommunications
licences to international tele-
communications operators.
Italian Firm to Deploy $51-m Myanmar Mobile Backhaul Network
talian wireless communi-
cations solutions provider,
CA, said it was hired to provide
its microwave radio solutions
Ior by u LeIecoms hrm operuLIng
in Myanmar for the latters net-
work rollout.
Without specifying the name
of the operator, the Milan-
bused hrm suId In u sLuLemenL,
A leading global mobile op-
erator is using SIAE MICRO-
radio solution for building a
state-of-the-art mobile wireless
buckIuuI Ior u neLwork oerIng
HSPA and LTE services
in Myanmar.
In January, one of the
two telecoms licence
winner, Telenor, said
it will invest $1 billion
in Myanmar to set up
mobile network using
HSPA and LTE-ready
technologies. The Norwegian
hrm suId IL pIuns Lo provIde neL-
work coverage for 90 percent
of the population in Myanmar
wILIIn hve yeurs.
TIe greenheId buckIuuI neL-
work will mainly relay over full
outdoor microwave radios, the
hrm suId. TIe wIoIe buckIuuI
network comprises of two re-
gions worth over $51 million
and will be completed over a
Wai Linn Kyaw hve yeurs depIoymenL perIod,
SIAE added.
TIe hrm suId IL wIII suppIy ILs
ALFOplus Series packet micro-
wave full outdoor solution to
build backhaul network. Back-
haul generally refers to the side
of the network that communi-
cates with the global Internet,
paid for at wholesale commer-
cial access rates to or at an Eth-
ernet Exchange or other core
network access location.
This network consolidates
our presence In LIe AsIu PucIhc
region where we are steadily
growing in several mobile net-
works, Stefano Ferraresi, key
sales account Myanmar, said.
In this dynamic market
our solution are highly valued
thanks to the product long life
span and best market power
consumption performances,
he added.
founded by Edoardo Mascetti
as Societa Italiana Apparec-
chiature Elettroniche (Italian
Company for Electronic Equip-
ment) in 1952, is present in over
Digicel Asian
Holdings an-
nounced in Decem-
ber last year that it
had been awarded
a contract to pro-
vide telecommuni-
cations towers to
Ooredoo Myanmar,
one of the two inter-
national telecoms
operators in Myan-
It is intended
that these telecom-
munications towers
will also be made
available to other
operators, Yoma
said in a statement.
Mobile subscrip-
tions in Myanmar
are projected to in-
crease strongly within the next
Iew yeurs, Irom 1. mIIIIon In
zo1q Lo un esLImuLed o mIIIIon
in 20151.
TIIs sIgnIhcunL growLI In mo-
bile users is expected to drive
20 percent of all foreign direct
investment to the Myanmar tel-
ecommunications industry, an
.~:.~._..~ Yoma Strategic
Holdings (YSH) . , .- _., .: .~
. e .q.~:~|~ ~_ ..:~ .q.. . , .
. qee:~:. q:..,.. q:.
. , .~ ~ ._. ~e e . :.._ _e. ._~: .
Yoma - ~.~.~.._e.._
YSH Finance Ltd ~.,_e .~q
~ Digicel Asian Holdings PteLtd
- qee:....~..~:. ..:.
_.. ~,qee:.:.~:. ~:.qe
~..q~~.e... ~:q..e~q
...~ ~ ,~ . ~ .~ . e .q.. . , .
.:. ..~.,._ ~e:.,...
Denis OBrien - Digicel Group .
A ceIIuIar tower in Yangon. Yoma Strategic HoIdings (YSH) said it has ramped up its stake in its
Myanmar teIecoms tower venture rm from 8 percent to 25 percent.

Intel Readies 3D-Printed
Robots for Handy Consumers
ntel Corp introduced a walk-
ing, talking robot last week
mude Irom D-prInLed purLs
that will be available to con-
sumers later this year, if they
are willing to assemble it with a
kit that costs around $1,600.
The companys Chief Executive
Brian Krzanich was accompanied
by Jimmy on stage at the Code
Conference in California. The
wIILe z-IooL LuII roboL sIumed
onto the stage, introduced itself
and then waved its arms.
Intel describes Jimmy as a re-
search robot, but the company
InLends Lo muke D-prInLubIe
plans available without charge
for a slightly less advanced
version, and partners will sell
componenLs LIuL cunnoL be D-
Noel Randewich and Alexei
printed, such as motors and an
Intel Edison processor, in kits.
Jimmy can be programmed to
sing, translate languages, send
tweets and even serve a cold bee
r. Reuters
Intels Jimmy the Robot is shown in this publicity photo.
industry with an estimated $1
billion in FDI in 2014, and is
on track to be the FDI leader in
Yoma Strategic posted a 44.9
percenL drop In neL prohL Lo
shareholders to $5.1 million for
its fourth quarter ended March
1, zo1q, down Irom $q.16 mII-
lion a year ago.
z8 counLrIes und oers operu-
tors technological solution for
microwave and millimetre wave
transport, services and design.
~ ~. _~ .. .~ . e .q.~, ..: .
. ,.~~:. _.,.:.- .~.e
.q.. . , .~. . . , .~ -~ , q~
..q.~~~ microwave radio
solutions ..~q, :.q...~
._~:. ~.e:._.:_~:..._.
~:. .e:_._...q..:._. ..,
~._..~ ~..|~.~. ~.:..
.~ . e .q.. . , .~. . ~.,_ e
microwave radio solution ~:.
~. ._.~: _.,.:.~ HSPA .
LTE ~~:,~~,..:....q,
~~~ :.q...~._~:. ,.~-
~_.,.~~ .e:_.:.._.
~,,~|q.~ .~.e.q...
qq.._ Telenor . ,.~~.,_e
_ ., .:. ~ ~..q ~, ..'.:
~..eq..._...~: HSPA .
LTE ,_ .._:.:.~. ._._. .~:._e
. .~ ~:,~ ~ , q~ _.. . ._ _e.
._~: . ._~_:. ._ .~. .| .,: .~.
~.~. ,.~~.,_e _.,.:.-
...q ~ q:..,.~:. |...~~.
e,.~.._..q, q_.,.:.._~:.
._. ._.:_~:..._.
Intel Corp ~.,_e .....:~
_.. .~:.._.:_...:. _....._
.~,.~:. 3D ~.~_e ~..
. ~ .~ _... ~: e. . . ~~ . . ..
..:.~:. .q:......__e.._~:.
._.:_~:._.. ~..q~,..'.: ~'~~
~ , ~._ _e. ~: . . ~ e ~ ~. .
q.__e.._~:. .q._.
~. .|~ . ~ -~. ..: .. Brian
Krzanich . J immy e..'._
~..| .~,....~~: ~e.e.,.
e:.~ _.. . . ._ Code Conference
June 5-11, 2014
Myanmar Business Today
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir
TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
*PPleaasee noote thee dday change for the deparrture time too Hong Kongg.
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 13:00 14:00 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
June 5-11, 2014
Myanmar Business Today
Myanmar Summary
Myanmar Summary
MicrosoIt Shows OH Reul-Time Skype Trunslutor
icrosoft Corp showed
o u LesL versIon oI
a real-time, spoken-
word translation service for
Skype cuIIs IusL week, LIe hrsL
time the worlds largest soft-
ware company has demonstrat-
ed the breakthrough technology
publicly in the United States.
Skype Translator, as it is cur-
rently called, allows speakers in
dIerenL Iunguuges Lo Ieur LIe
others words spoken in their
own language, according to a
demo introduced by Chief Ex-
ecuLIve Omcer SuLyu NudeIIu uL
the Code Conference technol-
ogy gathering in California.
It is going to make sure you
can communicate with anybody
without language barriers, said
Nadella, who took over as Mi-
crosoft CEO in February and is
keen to re-establish the compa-
ny as a technology leader after a
decade of slipping behind Apple
Inc and Google Inc in mobile
Nadella described the under-
lying technology as magical,
but said the task now was turn
it into a real product rather
than just a research project,
promising it would launch by
Alexei Oreskovic and
Bill Rigby
the end of the year. He did not
say if it would be a free add-on
for Skype users or a paid extra.
Immediate reaction to the
demo, featuring an English-
speaking Microsoft executive
chatting with a German coun-
terpart, was mixed. One Ger-
man-speaking audience mem-
ber said the translation was
good enough for vacation, but
not for business.
The new technology, which
Microsoft demoed in a rougher
form 18 months ago in China,
couId represenL u sIgnIhcunL
feature for its Skype online chat
service, which boasts hundreds
of millions of users. It is an ad-
vance on Microsofts current
translation features that only
work with written words on its
Bing search engine and Internet
Explorer browser.
Microsoft has been work-
ing hard on speech recognition
technology for years. Earlier
LIIs yeur IL sIowed o CorLunu,
its voice-activated personal
assistant designed to rival Ap-
ples Siri. Reuters
LG Electronics Launches Revamped G3 Smartphone
outh Koreas LG Elec-
tronics Inc launched a re-
vumped versIon oI ILs ug-
sIIp G IIgI-end smurLpIone
at a discount to its predeces-
sor model last week and said it
would ship more than 10 mil-
lion units to improve its ailing
handset business.
G Iopes LIe new G pIone,
wIIcI udded meLuI hIm Lo LIe
reur pIusLIc cover Lo oer u poI-
ished metallic look, will pull its
handset business out of the red
and provide meaningful earn-
ings momentum in the coming
The new device has a 5.5-inch
screen with almost twice the
resolution of its G2 predecessor
wILI 8 pIxeIs per IncI (ppI).
The resolution is also better
LIun LIe q1 ppI screen on Sum-
sung Electronics Cos Galaxy
S q1. TIe new G pIone uIso
features a laser focus for the
TIe G`s IuuncI prIce oI
899,800 Korean won ($880) is
about 6 percent lower than the
G2 in South Korea, highlighting
the intensifying competition on
both price and features among
Se Young Lee smartphone makers as market
growth slows.
Broadly speaking, business
conditions should be better in
the second quarter than the
hrsL quurLer, Purk Jong-seok,
chief executive of LGs mobile
business, told reporters dur-
Ing u brIehng, cILIng LIe gIobuI
IuuncI oI LIe G us u mujor Iuc-
Purk decIIned Lo oer con-
crete earnings guidance and
did not specify a timeframe on
LIe sIIpmenL LurgeL Ior LIe G,
which will be rolled out world-
wide to more than 170 carriers.
While LG did not disclose
sIIpmenL hgures Ior LIe Gz,
IndusLry omcIuIs esLImuLe LIuL
more than 5 million units of the
device have shipped since its
IuuncI In AugusL zo1.
LG brought forward the
IuuncI oI LIe G Lo Muy umId
market speculation that Apple
Inc could reveal its next iPhone
in August.
LGs mobile division report-
ed an operating loss of 9 bil-
lion won ($8.80 million) in the
January-March quarter due to
competition from Chinese ri-
vals like Huawei Technologies
and Lenovo Group. Reuters
._ Microsoft Corp . , .- Skype
..'...~.. ~.,.~.._.._
:.:_., . ._ ~, ..: . _.. .
._ ~.....: e ~ ~:. e. ~.~ ~
~..q~,_._.:.~ .~:.
SkypeTranslator e .~ q ..'.~'
.~ q ._ ~. .|~, ..: . ._
:.:.~:..~_._ ~.._...:.
~:. ,.~- .q.:.:.~:..
:.:_ ., . .... ._ _ e. ._ ~: .
~...:~q:q.. Satya Nadella
-~e.e.,.e:. Code Conference
~ _...._ ~..._....~..
Nadella . ~..|,_.._:._
..:.,._~:.._.:_~:.._.. ,.~.,
_e ~..|~,..:.~:. ..~.,
.~:~q.e:.- LG Electronics
Inc . ,.- ..~e,. G3 ~~~
-:.q .~.. ~ . . . ~ _. . ..~ e , .
. . , .~ .~~ ..q, ~~ ~ e , . ~~ ., .
~:. _e, . ._ _e. ._~: . ._~_:. ._ .
LG ~.,_e .~.:.. . ~ ._
..~.~.~.._..__e._.. .:._
....~~~~ e,..~~..
.q:.._. .. ~ . ~ .~~ q, ..: . , .
:.._~: .._ . ~_., ._~_:. ._.
~. .|e , .~.. . :.~ . :_. ...
.~.q_.. e. G2 ~q._
~q_ ~.. .. . . ~. .~ ..
, pixel (ppi) q ._ _e. ._ .~. .|
~q_ ~.. .._ Samsung Electronics
Co - Galaxy S5 ~ q ._ ,,~ ppi
~.:.,._~:.._. .q._.
LG - e,.~..q ~.q:~._.
...:. ,_..,.~...|~._~:.
~..| G3 e,.~:. ~q.e:. ~.
,~~ ~..q~,..'.: ~,
_e G2 .~:~ ' q:..,. ..:.
~: ~ q.e:.. ~~ . .q: ..._
_e._.. ~.~~.~...:._ ..~
e , ....~ ~ ~~ ~ e _. . _e. ..
~.. .~.~~....q, ..
..: ._ _e. _. . ~. .|~, ..: . ~:.
e. . . ~ , ~ ~. ._.. ._ _e. ._~: .
~~_.._.:_~:..._....: ,..
~..|~,..:.~:. Skype~.._.
..:.. ~.. ..e~ ~....
~, ..: . ~_e. ...._ . ._ ~:.
Curdeep PaII, Microsoft corporate vice president of Skype and Iync, demos the new Skype TransIator app whiIe Re/code`s WaIt
Mossberg and Kara Swisher looks on.

PeopIe pose for a seIe using IC`s newIy unveiIed smartphone caIIed the C3 at a
press event in London.

June 5-11, 2014
Myanmar Business Today
Ross Cormack, CEO of Ooredoo Myanmar, speaks at the press conference.
Kyaw Min Abel, Chief Mentor of Ooredoo Myanmar. Kyaw Min
Ooredoo Press
Conference on
Progress on Network
From (L) to (R) , U Kyaw Zay Yar Win , Jason Tan,U Myint Zaw, Daw Tiri
Kyar Nyo, Rossv Cormack, U Soe Moe Kyaw, Ross Cormack, U Ko Ko Tein,
U Zaw Win Khaing & Paul Whitworth. Kyaw Min
Zin Ti Htut, Myat Myo Pwint, Kyaw Zay Yar Win, Mable Hnin & Chan
Mya Aye. Kyaw Min
Te audience in Yangon was captivated by the beautiful melodies of the Royal
Compositions by King Bhumibol Adulyadej of Tailand. Royal Tai Embassy Pro Musica Orchestra performs. Royal Tai Embassy
U Aye Myint Kyu, Union Minister for Culture, presented a fower bouquet
to Admiral M.L. Usni Pramoj, Privy Councillor and conductor as a token of
appreciation. Royal Tai Embassy
Pisanu Suvanajata, Ambassador of Tailand to Myanmar, welcomed U Aye
Myint Kyu, Union Minister for Culture, as the guest of honour and co-host
of the Mid-Summer Night Music: Friendship from Tailand at the Strand
Hotel, Yangon. Royal Tai Embassy
U Aye Myint Kyu, Union Minister for Culture, with the guests of honour.
Royal Tai Embassy
Professional and talented musicians of the Bangkok Pro Musica Orchestra
mesmerized the audience with the Royal Compositions by King Bhumibol
Adulyadej of Tailand. Royal Tai Embassy
Mabel Hnin & Soe Yu Paing. Kyaw Min
Presentation on Investment Man-
agement from BestInvest by Infnity
Financial Solutions
Delegates pose for a photo. Wai Linn Kyaw
Mark Ommanney, Manager, Business Development of Bestinvest, gives a pres-
entation. Wai Linn Kyaw
Trevor Keidan, Chief Executive of Infnity Financial Solutions Ltd, gives
a presentation.
Pro Musica Orchestra's Performance in Yangon & Nay Pyi Taw
June 5-11, 2014
Myanmar Business Today
June 5-11, 2014
Myanmar Business Today
Second Israeli Film Festival in
Myanmar This Month
Kyaw Min
he Israeli Embassy in
Yangon is going to launch
the Second Israeli Film
Festival 2014 this month.
The festival will
take place at Junc-
tion Cineplex in
Myanmars capital
Nay Pyi Taw from
June 5 to 6, and at
Myoma Cinema in
Myanmars second-
largest city Man-
dalay from June 6
to 7.
TIe hIms Lo be
screened at the
second edition
of the festival,
which is a part of
the framework of the cultural
cooperation between Israel and
Myanmar, revolve around com-
munity life, relationship and
love, career and action.
|TIe hIms| wIII gIve noL onIy
give a glimpse of the Israeli
hIm IndusLry buL wIII uIso uIIow
the Myanmar audience to see
the Israeli daily life routine, the
dilemmas and the diversity that
the Israeli society is confront-
ing, the Israeli Embassy in
Yangon said in a statement.
TIe hrsL srueI IIm esLIvuI
was held in Yangon last No-
TIe openIng hIm - Some-
LIIng SweeL - Is u romunLIc
drama taking place in an Israeli
village, in the early 2000s. In
the centre of the story stands
Tamar, the eldest of three
sisters, who gave up on her life
dream to go back home and
support her parents. The story
starts with the middle sisters
wedding; then the youngest
announces she is also engaged
und presenLs Ier hunc Lo LIe
IumIIy Ior LIe hrsL LIme. TIIs
puts a lot of pressure Tamar,
who is in a stable but not excit-
ing relationship, and things get
complicated when she falls in
love with someone
By Summers
End is set up in a
small Israeli village,
in the summer of
1978, one month
prior to the Camp
David peace ac-
cord. What troubles
Michal is that her
7-year-old daugh-
ter, Maya, cannot
read or write, and
that her teacher
wants to hold her
back a year. Michal rises to the
occasion and vows that by the
end of the summer, Maya will
learn how to read and write
and will move on to the next
grade. But this summer is set
to be full of surprises for the
family. Michals father, whos
been missing for 20 years,
suddenly returns, and brings
Chinese Actor Meets
Myanmar Fans in Yangon
Phyu Tit Lwin
hinese actor Zhang Jin-
lai, famous for his role
as the Monkey King in
80s Chinese television series
Journey to the West, recently
met with Myanmar fans in
Yangon, after his arrival in the
former capital city on a visit to
Myanmar at the invitation of
the Myanmar-China Friend-
ship Association.
Zhang Jinlai, also known by
his stage name Liu Xiao Ling
Tong (literally: Little Six Year
Old Child), said: I came here
not only for meeting with My-
anmar fans but also for further
enhancing Paukphaw (frater-
nal) friendship between our
two peoples.
Zhang donated K1 million
($1,040) to Su Taung Pyae
National Race Youth Develop-
ment Charity School, home of
more than 1,700 students, most
of whom orphans or from poor
families across the country.
The gathering was sponsored
by ASEAN-China Center, the
Chinese Embassy in Myan-
mar and the Myanmar-China
Friendship Association. Chi-
nese Ambassador to Myanmar
Yang Houlan, Secretary-Gen-
eral of ASEAN-China Center
Ma Mingqiang and Chairman
of Myanmar-China Friendship
Association U Sein Win Aung
were also present.
The visit of Zhang falls on
China-ASEAN culture exchange
year and plays a major role in
culture exchange between Myan-
mar and China, said Ma.
Zhang later visited the new
capital Nay Pyi Taw and the
second largest city Mandalay.
Zhangs Myanmar visit is the
second of a Chinese actor after
Hollywood star Jackie Chan
visited Myanmar on a UNICEF
program in 2012.
Zhang portrayed the Monkey
King (Sun Wukong) in the 1986
television series Journey to the
West, which was adapted from
the classic novel of the same
with him the familys dark past
and hidden secrets that have
been dutifully repressed. The
hIm won uwurds In LIe ReIovoL
Womens international Film
Festival 2011, and Israeli Film
Centre in New York and Haifa
International Film Festival
Desperado Square illus-
trates a romantic drama and
awarded by the Israeli Film
Academy for best director and
best supporting actor. In an
old neighbourhood, stuck in
LIe pusL, LIe hrsL unnIversury
of Morris Mandabons death is
approaching, and his youngest
son, Nissim has a dream. In the
dream his father orders him to
reopen the old neighbourhood
Chinese actor Liu Xiao Ling Tong, best known for his role as the Monkey King in
the 1986 Chinese TV series Journey to the West, performs during his visit to
Myanmar in Yangon.
movie theatre thus breaking
the vow Morris had made years
ago never to screen movies
Operation Thunderbolt is a
hIm bused on LIe Lrue sLory oI
AIr runce IgIL 1q Irom TeI
Aviv to Paris, via Athens, that
was hijacked by four terror-
ists. After lending in Entebbe,
Uganda, the Jewish passen-
gers were separated and held
hostage in demand to release
many terrorists held in Israeli
prisons. After much debate, the
Israeli government sent an elite
commando unit, to raid the air-
heId und reIeuse LIe IosLuges.
By Summers End movie poster.
Poster of the flm Desparado Square.
Teatrical US poster of Opera-
tion Tunderbolt.