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September 25-October 1, 2014

Myanmar Business Today
mmbiztoday.com
mmbiztoday.com September 25-October 1, 2014 | Vol 2, Issue 38 MYANMAR’S FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Myanmar Summary
Contd. P 4...(IFC)
Contd. P 4...(IFC) Contd. P 4...(Online Licence)
Contd. P 4...(Online Licence)
Inside MBT
IIC to Lend Yomu Bunk $gm to
Bolster Locul SMIs
Feasibility of SME loans still murky
Morley J Weston
T
Ie WorId Bunk`s
private sector lend-
ing arm, Interna-
tional Finance Corpora-
LIon (¡¡C), Ius upproved
a loan of $5 million to
Yomu Bunk Lo LesL LIe
waters for a possible $30
million deal in the coming
years.
The move aims to help
Yomu buIId hnuncIuI
mechanisms for extend-
ing loans to SMEs, as well
us buIIdIng u core bunk-
Ing sysLem, enIunce rIsk
management and cor-
porate governance, and
develop new products
and delivery channels for
SMEs, IFC said.
SMEs in Myanmar are
severely hampered by
u deurLI oI hnuncIng, u
problem the IFC program
seeks Lo uddress. How-
ever, hnuncIuI Iuws Iuve
not yet caught up with the
growing economy.
¨As LIe cenLruI bunk, we
are not really restricting
LIe bunks Lo muke projecL
hnuncIng, IL`s jusL LIuL LIe
infrastructures are not yet
LIere . ProjecL hnuncIng
is usually long term, and
order to have longer term
lending, you need to have
very good assets to al-
low them to lend,” U Set
Aung, deputy governor of
LIe CenLruI Bunk oI My-
anmar, said.
¨TIe bunks cun do Iong-
er-term loans with proper
management. Because
necessury hnuncIuI mur-
keLs und hnuncIuI InsLru-
ments are not ready, this
is not technically possible.”
He added that the Cen-
LruI bunk Is workIng Lo
create the necessary mar-
keLs Lo Increuse IendIng.
Online Licence System to
Go Live in Three Months
Phyo Thu
A
n online system to
process applica-
tions for export-
import licences will be
fully installed within the
next three months, a min-
ister said.
¨We ure prepurIng LIe e-
licence system, which will
allow online application
without the need to come
Lo LIe om ce. We Iuve uIso
received approval from
Myanmar Investment
CommIssIon (M¡C),¨ Dr
Pwint San, deputy min-
ister for commerce, said
at a Myanmar Garment
Manufacturers Associa-
LIon (MGMA) conIerence.
Currently, the ministry’s
website only provides in-
formation for the licence
application process and
applicants have to apply
for licence at government
om ces In Yungon or Nuy
Pyi Taw.
‘E-licence’ application
process is being carried
out in parallel with the
implementation of the
NuLIonuI SIngIe WIndow
.~,.·.~,.·q:~,.e
.q.. · .· Ful l y Onl i ne
Automatic System _e. .:. ·
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(IFC) ._ ,..·~· ..¸..·
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Karin FinkeIston, IFC`s Vice President for Asia Paciñc, and Yoma Bank Executive Chairman and CEU U
Theim Wai, aIso known as Serge Pun, sign the ceremoniaI certiñcates, with U Set Aung, deputy gover-
nor, CentraI Bank of Myanmar, Iooking on.
Y
o
m
a

B
a
n
k
¡uIhIIIng Myunmur SMEs` Ur-
genL ¡InuncIng Needs P-8
Myanmar in The Midst of
Tourism Boom P-21
BesL WesLern SIgns DeuI Lo
Open First Mandalay Hotel
P-23
September 25-October 1, 2014
Myanmar Business Today
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2
LOCAL BIZ
MYANMAR’S FIRST BILINGUAL BUSINESS JOURNAL
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Morley J Weston
Reporters & Contributors
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Morley J Weston
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Bosiness News in BrieI
Bor der tr ade wi th Chi na exceeds $2 Bi lli on
Border Lrudes wILI CIInu In LIe hrsL hve monLIs dur-
Ing LIe hscuI yeur LIuL sLurLed on AprII 1 exceeded $z.1¸
billion, about 87 percent of total border trades with the
remaining four neighbours during the same period that
sLood uL $z.qq bIIIIon, om cIuI duLu sIows.
Locol oirlines mull Chiong Moi µights
Two privately-owned local airlines – Shwe Myanmar
AIrIInes und AIr KBZ - uIm Lo sLurL servIces Irom Yun-
gon Lo CIIung MuI In NorLI TIuIIund over LIe nexL Lwo
months. The two airlines claim travel demand between
the two cities would justify the new services, local me-
dia reports.
CNC price to douhle e§ectioe Octoher 1
TIe prIce oI Compressed NuLuruI Gus (CNG), muInIy
used for taxis in Myanmar, will be increased by 100
percent starting October 1, local media reported, citing
Energy MInIsLry sources. CNG prIce wIII be ruIsed Lo
K¸q6.¸o (¸6 cenLs) per kg Irom Kz;¸.zq, buL sLIII mucI
Iess LIun LIe CNG prIces In some neIgIbourIng coun-
LrIes, LIe om cIuIs suId.
Mgonmor, Luxemhourg prms to conduct on-
shor e oi l explor ati on
Myanmar’s state oil and gas enterprise will jointly
conduct inland crude oil exploration in the country with
u ¡uxembourg compuny on producLIon sIurIng busIs,
it announced. Under the deal signed between the My-
unmur OII und Gus EnLerprIse (MOGE), CAOG SurI oI
¡uxembourg und IocuI Apex Geo ServIces Co ¡Ld In Nuy
Pyi Taw, the oil exploration will be carried out in Myin-
tha, Ayeyawaddy region.
Bongkok Airuogs to µg tuo neu Mgonmor
r outes
TIuI bouLIque uIrIIne Bungkok AIrwuys wIII IuuncI
Chiang Mai-based ATR 72 services to Yangon and Man-
dalay in late October. From October 26, Mandalay will
InILIuIIy be served wILI LIree-weekIy ßIgILs und Yungon
with four. According to the Centre for Aviation, Bang-
kok AIrwuys currenLIy oßers uImosL 11,ooo weekIy seuLs
Lo und Irom Myunmur, mukIng IL LIe IurgesL uIrIIne In
Myunmur`s InLernuLIonuI murkeL wILI ubouL 1o percenL
share of total seat capacity.
TIe uIrIIne expecLs Lo Iuve ubouL 1¸,ooo-weekIy seuLs
Ior Myunmur In November.
StanChar t to help Myanmar SMEs
UK-bused SLundurd CIurLered recenLIy kIcked oß u
hnuncIuI educuLIon progrum Ior smuII und medIum
enterprises in Myanmar in a bid to help enhance the
hnuncIuI und busIness knowIedge oI IocuI SMEs und
help them manage the growth of their companies. The
program, Education for Entrepreneurs, was developed
by Standard Chartered in collaboration with Pricewa-
terhouseCoopers and the British Council Myanmar.
The trainees will then begin delivering the educa-
tion sessions to local entrepreneurs in October. About
300 small businesses from Mandalay, Mawlyamyine,
TuunggyI, und Monywu wIII receIve LruInIng In LIe hrsL
phase this year.
1mports up shorplg in 1Yzo1q-1g
Myanmar imported $7.1 billion worth of goods in the
hrsL sIx monLIs (AprII-SepLember) oI LIe currenL hscuI
year 2014-15, rising sharply by 2.3 billion, or 48 per-
cent, from $4.8 billion in the same period of the previ-
ous hscuI yeur, om cIuI duLu sIows. OI LIe LoLuI, $6 bII-
lion worth o commodities were imported through sea
route while more than $800 million through border
trade.
Coo't plons to creote q.qm johs for migront
wor ker s
The government plans to create millions of jobs to
druw buck LIe q.q mIIIIon mIgrunLs now workIng In
Thailand and Malaysia, a deputy minister said. Deputy
MInIsLer Ior Home AßuIrs BrIg-Gen Kyuw Zun MyInL
told the Parliament that jobs would be created in local
ureus Ior mIgrunL workers. He suId LIuL z mIIIIon My-
unmur peopIe ure workIng In TIuIIund und z.q mIIIIon
are in Malaysia.
Myanmar Summary
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
3
Myanmar Summary
Contd. P 4...(Fish Market) Contd. P 4...(Fish Market)
LOCAL BIZ
Int'l Stundurd Wholesule Iish Murket
to be Set Up in Yangon
Tin Mg Oo
M
yanmar Fish-
ery Federa-
LIon (M¡¡)
announced that a new
international standard
wIoIesuIe hsI murkeL
is to be built in Twante
township in response to a
directive from the presi-
dent.
A team, led by Minister
Ior CooperuLIves U Kyuw
Sun, Ius conducLed heId
assessments for the con-
struction of the new mar-
keL, buL u IocuLIon und
project timeframe have
yeL Lo be reveuIed, U WIn
KyuIng, secreLury oI M¡¡,
said.
“Our federation agrees
with the plan to construct
a new international stand-
urd hsI murkeL. However,
we do noL know LIe deLuIIs
of the plan being overseen
by the Ministry of Coop-
eratives,” he added.
¡n Muy, u new hsI mur-
keL numed ¨SIwe Pu-
duuk¨ opened neur LIe
wIoIesuIe hsI murkeL In
KyeemyInduIng Lown-
sIIp. SIwe Puduuk mur-
keL Ius qoo sLuIIs wILI LIe
dimensions of 18 feet by
11 feet wide, 270 of which
have been already been
sold.
However, only one seller
is currently running busi-
ness, suId U TIun ¡wIn,
chair of MFF.
“There were 10 sellers
just after the opening,
but due to a low-level of
customers and earnings,
only one is left. Many sell-
ers are still doing busi-
ness at other cramped
spaces instead of the wide
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
From page ¡...(IFC) From page ¡...(Online Licence)
From page ¡...(Fish Market)
From page ¡...(Fish Market)
From page ¡...(Online Licence)
LoIthunsu Ixpunds Ticket Sules in Myunmur
Ties up with three local travel agencies
Morley J Weston
G
ermun ßug cur-
rIer DeuLscIe ¡uI-
thansa AG has
authorised a group of
LIckeL ugenLs Lo seII LIck-
ets within Myanmar to
muke IL eusIer Ior cusLom-
ers Lo book ßIgILs Lo Eu-
rope, typically connecting
LIrougI Bungkok.
Following the move,
LIckeLs cun now be pur-
chased not only by indi-
vidual travelers but also
by smaller travel agencies
In LIe suIes omces oI Co-
Iumbus TruveIs ¡uILIunsu
CILy CenLer, ¡uILIunsu`s
global franchise travel
agency partner, Sun Far
Travels and Tours and
Myanmar Aviation Cent-
er.
This is expected to help
¡uILIunsu compeLe wILI
seven Myanmar-based
airlines, as well growing
competition from outside
airlines. Potential cus-
tomers are also expected
to sruge with anticipation
of Myanmar’s emerging
middle class and the con-
tinued growth of tourism
in the country.
¡n-counLry LIckeL suIes
wIII IeIp ¡uILIunsu so-
lidify statistics regarding
its customers, Europe’s
IurgesL currIer suId. DIrk
Grossmun, ¡uILIunsu
general manager for pas-
senger sales in Thailand
und LIe Mekong regIon,
told Myanmar Business
Today, “The Myanmar
Myanmar Summary
Yomu Bunk ExecuLIve
Chairman and CEO Serge
Pun said that this would
not be an issue, noting
severuI workurounds Lo
LIe exIsLIng hnuncIuI Iuws.
“If we feel comfortable
that your business is a
viable one, that will have
cusI ßow LIuL Is cupubIe oI
repaying the loan within a
certain reasonable period
of time, we want to lend to
you even if your collateral
Is InsumcIenL.
¨WIuL we Iuve been do-
ing to convince the central
bunk wIen we ure u bIL
seemingly above what is
safe is our internal issue
wILI LIe cenLruI bunk,¨
Pun said.
If a business could not
provIde sumcIenL coIIuL-
eral for a new construc-
tion, a smaller loan will be
given to allow construc-
tion to begin, and the
property continually reas-
sessed and equity reeval-
uated, he added.
Pun said that this sys-
tem would help support
SMEs as long as proper
oversight was followed,
and it was ensured that
the loan money went into
LIe specIhed busIness
with a solid business plan.
IFC’s investment and
advisory support is ex-
pected to help Yoma pro-
vide an additional 1,000
loans worth $370 million
to small and medium en-
terprises in Myanmar by
2019, the lender said.
“IFC puts a strategic fo-
cus on supporting the de-
velopment of Myanmar’s
hnuncIuI und bunkIng
secLor us bunks ure crILI-
cally important in helping
entrepreneurs grow their
businesses and contribute
to the overall economy,”
suId KurIn ¡InkeIsLon,
IFC’s Vice President for
AsIu PucIhc.
However, representa-
tives of both the IFC and
Yomu Bunk were cureIuI
to stress that this is not
a handout, and that the
loans were to be given on
purely commercial terms.
(NSW) sysLem, wIIcI Is
due Lo be hnuIIsed by zo1¸
as per the agreements to
esLubIIsI u sIngIe murkeL
LIrougIouL LIe ASEAN
region.
The Ministry of Com-
merce is also issuing In-
dividual Trading Cards
(¡TC) uL border LrudIng
posts allowing individual
Lruders Lo omcIuIIy ex-
port – a move expected to
contribute to an increase
In exporLs, U WIn MyInL,
union minister for Com-
merce, said, adding that
LIe governmenL Is work-
portion of citizens is very
dImcuIL Lo esLImuLe be-
cuuse unLII Lwo weeks
ugo, we were seIIIng LIck-
ets in Myanmar mainly
vIu Bungkok.
“The Myanmar travel
agents could do it here,
but they did it via a Bang-
kok ugency. TIuL meuns
that all the sales out of
Myanmar appeared in the
statistics as sales out of
Bungkok.¨
Myanmar’s cash-based
socIeLy uIso mukes cus-
Lomers dImcuIL Lo Lruck.
¨NeurIy 1oo percenL ure
In cusI. Some bunks
are introducing a credit
card system, so it will be
launched very soon,” Hien
Thant, director of Sun Far
Travels and Tours, one
of the agents permitted
Lo seII ¡uILIunsu LIckeLs,
told Myanmar Business
Today.
AILIougI ¡uILIunsu oI-
hcIuIs decIIned Lo com-
ment on the opening of
new routes through My-
anmar, Grossman said
that airports in Myanmar
were mostly satisfactory,
and could handle most
large jets.
and clean space provided
here,” he said.
According to MFF, My-
unmur`s hsI exporL eurns
$600 to 650 million per
annum, while neighbour-
ing Thailand and Vietnam
ure exporLIng hsI prod-
ucts worth up to $7 billion
every year.
Also, Myanmar needs to
adapt to internationally
uccepLed prucLIces In hsI-
Ing, sLorIng hsI sLocks,
loading and unloading as
weII us LukIng sLerIIIsu-
tion measures in prepa-
ruLIon Ior murkeL expun-
sion when the upcoming
ASEAN EconomIc Com-
munILy (AEC) comes InLo
eßecL In zo1¸.
ing to stimulate value-
added production.
¡ocuI Lruders suy LIey
welcome a fully function-
al online export-import li-
cence application system.
WIIIe LIe process Ior Is-
suing licences is fast, a
good inspection and value
evuIuuLIon process Lukes u
long time, they said.
From page ¡...(IFC)
The government has
chosen Twante township
as the destination for the
new hsI murkeL becuuse
of its easy access to trans-
porLuLIon neLworks over
both land and sea.
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
Myanmar Summary
Gov't Seeks Purliument Nod
Ior $±oom World Bunk Loun
Aye Myat
T
he government is
seekIng upprovuI
from the parlia-
ment to secure $200
million in loans from the
WorId Bunk Ior IeuILI
and valley management
projects in Myanmar,
Iuwmukers suId.
The Health Ministry
is planning to launch
the Myanmar Essential
Health Services Access
Project with $100 million
international develop-
ment aid credit from the
WorId Bunk Lo provIde
ußordubIe IeuILIcure ser-
vices to the public.
Another $100 million
Irom LIe WusIIngLon-
based international or-
ganisation will be spent
on the Ayeyarwaddy Val-
ley management project,
said Deputy Minister for
Transport U Han Sein.
¡n Muy, LIe WorId Bunk
granted $80 million for
LIe sIx-yeur Myunmur Nu-
tional Community Devel-
opment project in three
townships of Chin and
Shan states as well as in
Tanintharyi region.
An Italian Development
Cooperation loan worth
€20 million will be spent
on infrastructure projects
in rural areas, said Depu-
Ly MInIsLer Ior ¡IvesLock,
Fisheries and Rural De-
veIopmenL U TIn Ngwe,
while the Ministry of Rail
Transportation will re-
ceive $45 million from
the Economic develop-
ment Cooperation Fund
oI SouLI Koreu Lo produce
and purchase railway car-
riages.
Americuns Muke Lp the Mujority oI
Myunmur I-Visu System Lsers
Htun Htun Minn
A
fter Myanmar
launched its E-
visa system on
September 1, data shows
LIuL AmerIcuns muke up
the majority of the foreign
visitors who have used the
system to enter the South-
east Asian country so far,
a minister said.
“Americans are now
the top visitors from the
west,” said U HtayAung,
union minister for hotels
and tourism.
In the past few years,
Germany, France and It-
aly held the top positions
umong WesLern counLrIes
in terms of the number of
people visiting Myanmar.
However, Americans
surpussed oLIer WesLern-
ers by contributing 6 per-
cent of the total foreign
entry into Myanmar in
LIIs hscuI yeur, IoIIowed
by the French account-
ing for 4 percent and
Germans accounting for
3 percent, according to
the Ministry of Hotel and
Tourism.
“The number of Ameri-
can tourists has increased
after the E-Visa system
wus InsLuIIed. ¡ LIInk
AmerIcuns IIke ßexIbIe
and transparent proce-
dures,” said U Htay Aung.
¡n LIe hrsL seven
months of this calendar
year, 1,604,746 tourists
entered the country, up
by 482,951 compared
with last year’s arrivals
during the same period.
¡n zo1¸-1q hscuI yeur,
Myanmar received over
2.04 million visitors with
the target this year set for
3 million foreign entries
InLo LIe counLry. TIIs hs-
cal year has already seen
over 1.8 million tourists
arrivals, the Ministry of
Hotels and Tourism data
shows.
Myanmar is experiencing
a 40 percent growth rate
in tourist arrivals and the
WorId TruveI und TourIsm
CouncII (WTTC) IInLed
LIuL Myunmur couId runk
among the top ten coun-
tries witnessing the fastest
growth in the number of
incoming foreign visitors
by the end of the year.
Tourism sector ac-
counts for 3.7 percent of
the country’s GDP and
LIe sLuke Is expecLed Lo
increase by 50 percent to
9.2 percent this year, ac-
cordIng Lo WTTC.
Myanmar issues six
types of visas compris-
ing tourist, business, en-
try, transit, diplomat and
multiple entry visas. In
June 2012, the govern-
ment started easing visa
restrictions by allowing
visa on arrival for busi-
ness, entry and transit
visas. The launching of E-
Visa on September 1 is a
continuation of the easing
process.
E-Visa, which previous-
ly covered 43 countries,
is now open to over 50
countries.
“People from Spain,
which does not have a
diplomatic relationship
with us are also coming
in due to this visa sys-
Lem. We ure pIunnIng Lo
add more countries in the
E-Visa system,” U Htay
Aung said.
MOHT is trying to set
up dIrecL ßIgIL IInks wILI
western countries to
complement the boom-
ing tourism industry. The
number of visitors arriv-
Ing by pIunes IusL hscuI
year didn’t amount to a
mIIIIon, buL In LIe hrsL
seven monLIs oI LIIs hs-
cal year the number has
already passed 1 million.
They have come solely
through the local and re-
gional airlines, the Minis-
try of Hotel and Tourism
said.
In 2012, tourist arriv-
als at Yangon Interna-
tional Airport increased
to 555,000 from 359,000
a year earlier, with most
arriving from Thailand,
China, France and Ger-
many.
_.,.:.··~· E-Visa .·_.¸
_...,:~ e· ..,. _e· ~· .q:~
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·_:.q.. . ~ · . · · _.:..q .
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._.e. ¸~~,¸~~¸ ·_:
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q, ..¸: . , .·:.q:¸~~,_.· ~ .
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.,..: ' q:.·.,.q_.. ·¸:.,
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_., .:. · · ~ · _._ ~· - ~:
._.:~.¸¸.q_.. ,·.~.: ~.:
._-~: ..·,.-~: _._~·
-~: _e~.,.-~: .~.,-~:
~_~ . _~ . ~· .q:~ . · _.¸- ~:
e _q ._ ..·.~.· ~.,_e·
..·,.-~: _._~·-~: _e~
.,.-~:.._ -~: , .¸¸.~
Visa On Arrival ~_e. ¸~~¸
. . . ~ , . ~ q~ ~ · .~· . · _.¸
. _. . ~ .q. - ~:~ E-Visa~_e.
¸~~, .~~··:. ~ q~~·
. · _.¸. ._ .
_.,.:~..q._ ~¸,..:.q.
. · -q:~~ ~ · ...._~ .e ¸_e ¸.
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~, ..'.: ., . ¸~~ ., ..¸.e
. · . · ~:. . ~ .~: . ~~_ _.¸
...q, ..:· . · ..,._ e
.q._.
~¸, ..:.q.~, _ ~ ._:,~.,
_e· ~. : ·~ . qq ._ ..¸..·
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~~~ _e· _.,.:_._..·.¸:.
- .q ._ e. ~¸ , ..:.q...:·
.q:~..,.~:. .~·.~.~
.·q, ..¡.¸~q._.
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
6
Dagon City 1 - Yangon’s Best Location
Making Myanmar More Beautiful
Yangon is a sprawling city
of seven million people
which makes choosing the
perfect location for your
home and work a decision
of vital importance. Dagon
City 1 trumps all other
possibilities, as the 22 acre
mixed-use development is
nestled in an area of
unparalleled convenience.
Dagon City 1 is located on
U Htaung Bo Circle, which
is just a five minute drive
from the bustling
downtown area and 30
minutes away from Yangon
International Airport, which
is Myanmar’s aviation hub.
A Location in Close
Proximity with National
Beauty
Direct footbridges will link
Dagon City 1’s exquisite
apartments, branded retail
zones, international grade
A offices and five-star hotel
with the country’s national
landmarks, including the
dazzling 2,500-year old
Shwedagon Pagoda. Dagon
City 1 offers the best
platform for Myanmar
people to experience the
glowing beauty of their
most sacred site, while
visitors are provided a
glimpse of their host
country’s rich culture. The
panoramic views from
Dagon City 1 of
Shwedagon Pagoda will
imbibe guests and
residents with a sense of
calm and tranquility,
allowing them to pay their
respects from within their
own homes.
An elegant, more serene
lifestyle awaits you at
Dagon City 1: whether it be
walking to the sprawling
Yangon Zoological Gardens
or Kandawgyi Park. Taking
time out to enjoy the
simple things of life has
never been easier, as there
you will find a convenient
respite from the hustle and
bustle of nearby downtown
Yangon.
A Hub for Local and
International
Businesses
Meanwhile, companies
operating from their Grade
A offices at Dagon City 1
Towers will benefit from
the convenience of being in
the heart of Yangon and a
short drive away from
Yangon International
Airport.
Dagon City 1 Towers will
create a centralized
location for both local and
multinational companies
seeking international
standard offices in a
well-designed modern
environment. It will be the
perfect place to network
and forge new business
relationships.
A Location to
Experience Upscale
Lifestyle
Dagon City 1 Plaza will
offer the residents of
Yangon a premier luxury
shopping experience
comparable to the elegant
promenades of Paris and
New York City.
Pedestrian-friendly and
unrivaled in extravagant
and irresistible offerings for
every taste, its vast array
of branded retail stores will
also promote international
and local consumers.
Easy-access footbridges in
close proximity to the city's
most culturally significant
sites surrounding the area
will provide a safe and
convenient way for
pedestrians to commute.
A Location that
Attracts Investment
Opportunities
From Marga’s extensive
experience across the
globe, the group is
confident that Yangon has
all the right ingredients to
become one of the top
cities in Asia.
Dagon City 1’s prime
location is also important in
terms of promoting real
estate investment. For a
potential buyer considering
the possible investment
returns, Dagon City 1’s
state of the art location,
design, property developer
and property management
are certain to appeal.
A Location to Call
Home
Dagon City 1 will
present its
r esi dents
t h e
opportunity to live in the
heart of Yangon while
enjoying an elegant
lifestyle. Its 12-story
residential towers will offer
apartments as part of its
world class community.
The residence not only will
provide a variety of
features to complement
modern living, including
a luxury
clubhouse,
a
fitness center, outdoor
swimming pool, restaurant
and indoor golf, but it will
also connect the tenants to
the city’s hottest new
shopping plaza, the top
cultural landmarks and
Dagon High School.
Dagon City 1 makes
Myanmar more beautiful
in the best location in
town.
The first phase of
residential towers 1–4 will
be launched in the fourth
quarter of 2014.
For more information,
visit www.dagoncity1.com
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Myanmar Summary
Sal es Hot l i ne : + 95 9 4482 5555 (Advertorial)
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
7
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
Iolñlling Myunmur SMIs' Lrgent Iinuncing Needs
May Soe San
S
Ince LukIng power In
2011, the new semi-
civilian government
has transformed Myan-
mar’s economic, political
and social landscape by
deveIopIng u murkeL-orI-
ented economy, inviting
foreign investment and
promoting local business.
Despite the government
experiencing consider-
able success through the
reform process, Myan-
mar’s small and medium
enLerprIses (SME), wIIcI
play a pivotal role in the
development of a country,
remain underdeveloped
and ill-prepared ahead of
LIe IuuncI oI LIe ASEAN
Economic Community
(AEC), wIIcI Is Lo be Im-
plemented in 2015 – high-
lighting the urgent need
to improve the sector to
boost competiveness.
Although Myanmar,
along with Cambodia,
¡uos und VIeLnum, Ius
been given an extension
to enter the AEC until
2018, the country has an
enormous Lusk In prepur-
ing SMEs so that they can
compete on a level playing
heId und deIIver LIe ex-
pecLed economIc benehLs
of entering the regional
trade bloc.
Despite Myanmar’s
SME’s imminent immer-
sion into the AEC, they
are far from ready to
compete on equal footing
because they continue to
operate based solely on
independent resources
and continue to have se-
verely restricted access to
capital, technology, busi-
ness infrastructure and
the ability to expand into
new murkeLs.
The dire need for
capi tal
CreuLIng eßecLIve cIun-
nels to obtain capital,
which is considered the
most vital need among
SMEs, remuIns dImcuIL
and SMEs are faced with
numerous obstacles in or-
der Lo IuIhI LIe hnuncIuI
requirements.
¨We cun geL Iouns oI
around 30 percent of the
value of the collateral
property, so if we plan
to build a factory worth
K6oo mIIIIon us secu-
rity, we can only borrow
uround K18o mIIIIon. We
can perform better if we
can increase investment
wILI Iouns Irom bunks. ¡I
we cun`L Luke ouL more In
loans, we can’t increase
production and improve
our competitiveness,”
Duw KIIn TIeIn WIn,
managing director at Min
HLeLe Kuung MunuIuc-
turing Co, told Myanmar
Business Today.
DespILe eßorLs Irom LIe
government to overcome
these obstacles, the num-
ber oI bunks IendIng Lo
SMEs remains small. The
state-run Small and Me-
dium Industrial Develop-
menL Bunk (SM¡DB), und
now Yomu Bunk, ure Iend-
ing to SMEs compared to
over zo bunks provIdIng u
buskeL oI hnuncIuI opLIons
to support SMEs in Thai-
land, which has largely
contributed to that coun-
try’s economic growth.
¡usL week LIe WorId
Bunk`s prIvuLe IendIng
arm, International Fi-
nunce CorporuLIon (¡¡C),
ugreed Lo Ioun Yomu Bunk
$5 million to boost the
bunk`s cupILuI prohIe so
they can more cheaply
lend to the country’s
capital-starved SMEs. If
successful, the IFC may
increase the loan to $30
million over the next cou-
ple of years.
SMIDB borrows from
the Myanmar Economic
Bunk (MEB) uL un InLer-
est rate of 8.25 percent,
which they in turn dis-
burse to SMEs at a rate of
8.5 percent.
¨TIe bunk cun pro-
vide loans only up to the
amount it gets through
government loans. Col-
laboration from other
international organisa-
tions remains scarce. Ad-
ditionally, business man-
agement, data and record
keepIng prucLIces oI LIe
industrial businesses are
weuk, creuLIng probIems
Ior LIe bunk Lo emcIenLIy
inspect how the loans are
being utilised,” U San
Thein, a senior consultant
at SMIDB, told Myanmar
Business Today.
AILIougI LIe bunk cur-
rently issues loans to
SMEs, the number of re-
cipients is limited because
the majority of SMEs are
unable to secure because
LIey ure unquuIIhed.
SMIDB said it plans to is-
sue Kzo bIIIIon ($zo mII-
IIon) In SME Iouns durIng
LIe zo1q-1¸ hscuI yeur -
doubIe Irom K1o bIIIIon
in loans disbursed to 62
companies during the last
hscuI yeur.
“The more loans we se-
cure, the better. Most
SMEs don’t have their
own facilities. Meanwhile,
the government also has
Lo ussume rIsk In grunLIng
loans,” U Myat Thin Aung,
chair of Hlaing Tharyar In-
dusLrIuI Zone, LoId Myan-
mar Business Today.
I nter est r ate and
collateral
Yomu Bunk`s ExecuLIve
Chairman and CEO, Serge
Pun, suId LIuL IIs bunk Is
willing to lend to SMEs
LIuL Iuck sumcIenL coIIuL-
eral. “If we feel comforta-
ble that your business is a
viable one, that will have
cusI ßow LIuL Is cupubIe
of repaying the loan with-
in a certain reasonable
period of time, we want
to lend to you even if your
coIIuLeruI Is InsumcIenL.¨
Businesses are interest-
ed in obtaining loans from
SMIDB because the inter-
est rate is lower, but that
the loan that is actually
issued is much lower than
the value of the collateral
property is undercutting
their potential. Finance
minister U Maung Maung
Thein hinted in late June
that Myanma Insurance
Omce wIII conducL u LrIuI
run on issuing loans with-
out securities in order to
provide more opportuni-
ties for SMEs.
¨We wIII Lry Lo provIde
small loans and promote
SMEs ahead of the region-
wide free trade system. As
we discussed on securi-
LIes Ior Iouns, we wIII hnd
a way out for SME’s,” said
U TIeL NuIng WIn, gen-
eral director of Myanmar
MIcrohnunce Bunk, one
oI LIe sLuLe-run bunks.
BusInesses cun Luke
out more than the al-
lowed amount with the
credit guarantee card,
where the Credit Grantee
Department acts as the
guarantor, he said. How-
ever, LIuL kInd oI Ioun Is
rIsky becuuse IL does noL
require any security, he
added.
There is no word yet on
the interest rate Yoma
Bunk wIII use Lo Iend Lo
Myanmar’s SMEs.
Coo't ond foreign
suppor t
G¡Z, LIe Germun SocI-
ety for International Co-
operation, is providing
training on controlling
Iouns, sysLemIsIng bunk-
ing processes to improve
IocuI bunks In order Lo
ensure the development
of SMEs.
Currently, the Central
Department of Small
and Medium Industrial
Development, under the
Ministry of Industry, pro-
vides a variety of support
mechanisms for SMEs,
including technical train-
ing in building databases,
advice and information
for startups, streamlin-
ing registration, access to
hnunce, onIIne servIces Lo
connecL wILI LIe ASEAN
SME Portal, connecting
local and foreign SMEs
and founding an export
consortia of SME team
clusters.
The country’s SMEs
need urgent assistance in
developing and scaling
their businesses in order
to compete in regional
murkeLs wIen Myunmur
enters the AEC in 2018.
The government’s ability
to support the country’s
SME’s acquisition of capi-
tal will ultimately deter-
mine if they will be suc-
cessful or fail to compete
against their stronger re-
gional rivals.
Myanmar Summary
A worker makes a Iacquer ware at a workshop at Bagan in MandaIay region.
U
A
u
n
g
/
X
in
h
u
a

The bank can provide loans only up to
the amount it gets through government
loans. Collaboration from other inter-
national organisations remains scarce.
Additionally, business management, data and
record keeping practices of the industrial busi-
nesses are weak, creating problems for the
bank to efficiently inspect how the loans are
being utilised.”
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.:.. · ~.~ .:..~ . . . ·, ..¸:.
._._. .¸:..:~:.,_..¸~
q _ . . .:._ ._.:~ .~~· .
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...~ · .. · · .¸:.. · e ¡ _. ¸· . .
..:·q.~:.__e.._. e·.
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e.,~.¸ ,~· ,·...·,..¸:.
. : ~ e ,_ .~ e e, _e· .:
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,· . ·~ ~.,_ e· SMEs
.¸:.. ..¸..··~..¸......:
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¸~~¸ ·_:.q.. . ~ · SMIDB
. SMEs ..·,..¸:.~ ~¸.
.· ¸~ ·.e·~..¸..:.._
_e.._. e.·..~· _.,.:
...:..q.·~.q.· ~¸. ~~
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. ·~..¸.....q: e.·_:
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.._.
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
9
Myanmar Summary
Myanmar Summary
LOCAL BIZ
Locul Iirms Get MICT Nod to
Provide Ixpress Muil Services
Kyaw Min
T
wo local postal ser-
vice companies –
UCS Express Mail
Services and Myanmar
USU Co – were granted
IIcences recenLIy Lo oßer
international express mail
services, according to the
Ministry of Communi-
cation and Information
TecInoIogy (M¡CT).
Both companies will pay
K1¸o mIIIIon ($1¸o,ooo)
annually for the permit
to engage in international
servIces Ior LIe nexL hve
yeurs, suId U WIn TIun
Htwe from UCS Express
Mail Services.
The two companies
hope to be operational by
the end of the year and
ure workIng Lo ImpIemenL
infrastructure such as in-
formation technology that
wIII IInk LIem Lo neLworks
in other countries and
build warehouses to ac-
commodate service needs.
UCS Express Mail Ser-
vIces suId IL couId Luke up
to three years for them to
Lurn u prohL buL expecL Lo
Incur beLween oI K¸oo-
400 million in annual ex-
penses - eßecLIveIy oper-
ating at a loss while they
buIId murkeL presence.
Myanmar Express Mail
ServIces (EMS) und DH¡
were LIe hrsL Lwo prI-
vate mailing services to
be granted permission
to operate international
express mail services by
the MICT. Since then, six
postal service companies
have been given licenses
Lo oßer InLernuLIonuI ex-
press mail services. “As
the government allows
more private companies
to compete, customers
are provided with more
benehLs und opLIons,¨ U
WIn TIun HLwe suId.
The companies are will
oßer express muII servIce
between Myanmar and
over 200 countries.
Ministry to Compensute
Mining Iirms
Phyo Thu
T
he Ministry of Min-
ing said it will com-
pensate the com-
panies that had to halt
operuLIon In KucIIn sLuLe
by extending permit peri-
ods.
The government al-
lowed jade mining opera-
LIons Lo resume In KucIIn
state on September 1 after
operations were suspend-
ed in May 2012 due to an
urmed conßIcL.
The move comes as a re-
sponse to requests of jade
mining companies who
have incurred losses dur-
ing the suspended period,
the ministry said.
Companies with operat-
ing permits must contact
the headquarters of the
Jewelry Trading Enter-
prise in order to obtain
the necessary extension.
The additional term is
based on the length that a
company had to suspend
its operations, the minis-
try announced.
Additionally, the min-
istry said new public ten-
ders will be invited for
bIocks wIere LIe operu-
tion term has expired.
KucIIn sLuLe Ius over
z,ooo jude mInIng bIocks,
buL LIe ureus oI ¡one
KIIn, Hpu KunL, Muw ¡u-
Muw Hun und KIun Tee
were LIe mosL ußecLed by
the halting of mining op-
erations in the state.
KucIIn sLuLe, LIe bIg-
gest jade producing state
in Myanmar, accounts for
the majority of the pre-
cious stone on display
for sale at jade and gem
emporiums. The most
recent jade and gem em-
porium, held from June
24 through July 6, earned
a record $3.5 billion in
sales.
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UCS ~_.,..¸:...·,..·
Myanmar USU ~.~...
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.¸:.~ ~¡¸~~, q~.,.._
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._~:·. . q._.
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Myanmar Summary
Myanmar Summary
Gov't to Redooble IHorts to Meet
Nutionul Ilectriñcution Turget
Zwe Wai
T
he Ministry of Elec-
tric Power will in-
LensIIy ILs eßorLs
to meet the national elec-
LrIhcuLIon coveruge Lur-
get for all households by
2030, a minister said.
The government is cur-
Z
a
r
n
i
M
in

N
a
in
g
rently boosting its electri-
hcuLIon eßorL und LryIng
to attract huge invest-
ment to the sector, Min-
ister for Electric Power
U KIIn Muung Soe LoId
u worksIop on nuLIonuI
eIecLrIhcuLIon progrum In
Nuy PyI Tuw.
The minister said about
200,000 households in
Myanmar get access to
electricity yearly, and with
the current rate of electri-
hcuLIon IL wouId Luke ¸6
years for the country to
supply electricity to all
IouseIoIds, mukIng IL Im-
possible to meet the 2030
eIecLrIhcuLIon LurgeL.
According to the target,
Myanmar needs to sup-
ply power to about 7.2
million households. Sta-
tistics show that power
consumption in Myan-
mar has increased by 33
percent from 2.4 million
households in 2011 to 3
million in 2014.
Myanmar’s electric-
ity woes are expected to
Improve In LIe nexL hve
yeurs us LIe WorId Bunk
(WB) Is seekIng Lo InvesL
$1 billion in the country’s
power sector including
electricity generation,
transmission and distri-
bution.
The lender said Myan-
mar could increase access
to electricity to 50 percent
of the population by 2020
with the funding.
The Asian Development
Bunk (ADB) uIso pIedged
a new loan of $60 million
to be used in improving
Myanmar’s power distri-
buLIon neLwork.
AccordIng Lo omcIuI
statistics, Myanmar’s in-
stalled capacity now is
4,361 megawatts, while
foreign investment in the
power sector is $19.28 bil-
lion as of June, account-
ing for 41.28 percent of
LIe LoLuI ¡D¡ Inßow.
Chin, Kuyuh to Get New Border Truding Posts
Phyo Thu
N
ew border trading
posts will be es-
tablished in Chin
und KuyuI sLuLes, U WIn
Myint, union minister for
commerce, told a meeting
at the headquarters of the
Union of Myanmar Fed-
eration of Chambers of
Commerce and Industry
(UM¡CC¡).
The new trading posts,
expected to be set up this
year, will become the lat-
est in the string of border
trading posts created dur-
ing the tenure of the min-
ister.
“The planned trading
posts will help combat il-
licit trade. Trade will in-
crease as we are issuing
individual trading cards
(¡TC) uL border LrudIng
posts,” he said.
The Chin state trading
post is in the early phases
of development where
assessment is still being
conducted, while the Mal
Sal trading post has been
in development for the
past year.
The aim of the new bor-
der trading posts is to
oßseL LIe reIIunce on seu
trade, which accounts for
70 percent of the coun-
try’s trade.
Establishing more trad-
ing posts will increase-
Lrude ßows, wIIcI cun
assist the country in prep-
aration for entrance into
LIe ASEAN EconomIc
CommunILy (AEC), Ie
said, thus trading posts
had been set up in Maw
Tuung, HLI KII und oLIer
border areas.
The ministry has also
brought about 52 com-
modity exchanges to fos-
ter domestic competitive-
ness in preparation for
the AEC.
.¸· ._._ ,e . · ~e:._._ ,e
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e·...:..:_e.._~:·. ...:.
.q.. · ~.., ..q:·.~e.q.~, _~.
_._.·:·.~,_~. ¡.~·._.·~
~ , ._ .~ . ~.· . .¸¸.
(UMFCCI) ~· ._.:._.
¡.~·._.· _._.·:·.~,_~.
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~~· e...~~·. e·..
.:..:_e.._~:·. .q._.
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._..,q:.. .:. _.¸. . .,..:
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. e .., .~_ ..:~ . · .q.
~~~ .,.._~....,.
_.·.·.¸~q_.. .~q~.¸,
~· .·.e.q._~:·.~,.e
. ~ ¸~q:. · . , .., ~:.~ ..,q
. ~ . ~ . . · q, ..:· q ~ .,
_.·._e.._.
AEC ...'..|~ . _._ ~ · .
-~ , . e . ~_~~ ~ _. · ~·
q:~· ~,...·.. _.,.,q,
~ , . e .., .~.¸:.~_.:.e · . .
_.·.._._. ~.·:~~~
~. q. _ e. _ . . . .. . ~~ · .
..:.~:· ·....· ~_.:.~,
. e .., ..¸:.~ e · . . . ._~:· .
.q._.
.¸ . .. . . .~:.~, _ ~ ._:,
._ ¸~,~ ~. ~..·:·.
~:...~:. .:~~:.~..·
....q.~.¸¸ ..:..¸:·:..¸~
~ _._ . q, _~ ¸... .. .¸:._. · ~·
..:·q~.¸~q._~:·. ~,_~.
~.¡.~ .._.
~..q._ ,·.-.:~~:.
~..·....q._~¸......¸:.~
_.·~·.¸~q~: q·..._.¸...
_~ ._~ ..:..:.. ..:· . · q,
._. _~¸..:..,._~:·. .¸...
. . .~:.~, _ ~ . ¡ ..· ..:· . .
.,_ ._ .~: ~ · ~¸· ....:
~.¸ ¸ . .:. .¸ . .. .:~ ~:.
.¸ ¸· · .q.~. ~.¡ . · q:~. .
,.......~· ._.:_~:.._.
_ ., .:. · · q ~ . .·:· .
¸~~,~~~ ., ._ . . .¡ .¸. ..
.:~ ~:.qq _~_. . .~q .:~
~:. .¸ ¸· · ~. .· . . , .·:.
.¸:.~~ · ..:. .¸· ~ . .·:· .
.¸:.~:...·.:~~:. _e,_e¸.
....·q, .,:~·. ,' ..
., ~.¸,eq.__e.~: ¸~,~
~..·:·.~:... .:~~:.
_e,_e¸..q.¡.~_.¸~~ _ ._.
q, ._e..·._~:·. ~,_~.~
.._.
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
11
Myanmar Summary
LN Agency, MRI to Luonch
Rice Wurehoose Insorunce Project
May Soe San
T
Ie UnILed NuLIons
Food and Agricul-
ture Organization
(¡AO) und LIe Myunmur
RIce ¡ederuLIon (MR¡)
ure workIng LogeLIer Lo
launch a warehouse in-
surance system pilot pro-
ject at the beginning of
LIe IurvesL seuson In No-
vember.
The aim of the insur-
ance system is to provide
a safety net for rice farm-
ers ußecLed by unsLubIe
prices that usually tumble
during harvest season.
“The major challenge
facing farmers is that they
need money after harvest-
ing to settle debts to the
ugrIcuILuruI bunk or oLIer
lenders. So they have no
choice but to sell their
crops amid low prices,”
suId Andrew W SIepIerd,
an agribusiness and mar-
keLIng consuILunL wILI LIe
UN¡AO.
The warehouse insur-
ance program will help
provide solutions for
farmers, he said, adding
that the farmers can get
receipts by storing rice
at the warehouses, which
they can then use as col-
lateral to get loans from
bunks.
“They can also choose to
sell the crops when prices
rebound. The project has
the potential to increase
the income of farmers by
10-15 percent,” he said.
TIe hrsL pIuse oI LIe
project will be tested in
Danu Phyu township in
Ayeyarwaddy region, the
town of Pyi in Bago re-
gion, Hlegu township in
Yangon, the town of Sit-
Lwe In RukIIne sLuLe und
NuypyILuw LerrILory.
An important project
requIremenL Is Ior bunks
and warehouse operators
to have access to updated
crop prIces und murkeL
information. The govern-
menL sIouId uIso work Lo
enact strong laws and reg-
ulations, Shepherd said.
“The project faces chal-
lenges because it needs
the coordination between
bunks und wureIouses.
TIe bunkIng secLor`s sLuß
needs Lo Iuve sumcIenL
knowIedge In IurmIng. ¡I
LIe bunks und wureIous-
es do not have relevant in-
formation, they would be
able to participate.”
The technological and
bunkIng uspecLs oI LIe
system were prepared last
year after the MRF sub-
mitted a proposal regard-
ing the system to FAO.
The system will be moni-
tored in order to identify
sLrengLIs und weuknesses.
“The FAO is providing
technical support for the
project. The MRF presi-
denL, U CIIL KIuIng, Is
providing the warehous-
es. ¡or LIe hrsL yeur, LIe
project will be on a small-
scale basis.
¨We ure uIso negoLIuLIng
wILI LIe cenLruI bunk re-
garding this project,” said
U Ye Min Aung, secretary
general of MRF.
The warehouses are
planned to accept three
varieties of rice per re-
gion, and overall the pro-
ject includes 10 varieties
that are compatible with
LIe IocuI murkeL. TIe pro-
ject will be implemented
in places with the highest
concentration of ware-
houses in select town-
ships.
~...·.~.~:~.~e¸
~._._e. ._ ~. : .:.,. q ~ :
~e¸ FAO .· _.,.:.··.
., ..|.~.· ..¸¸. ~ . ...|· .
_.. ...:·,~:...,.~..
.q ¸._ .... ... ..:· q ~ q,
...¸~_e· ....:·.:.._
_e.._~:·. _.,.:.··.,..|.
~.·..¸¸.. .q._.
e·.~:...,.~ ..:·q~
q_.· .-~. ~q_ q ~ .¸~ . :
.~:·..¸:. ..|...'.¸,~·
..|...¸ .~¸ .· .._ ~~ ~
· ~ .· ._ ..¸..q_.· ._ ..,:
.¸:.._eq· .q, ~~ ~ _e. _. .~. .|
......~ .:._..|...'.¸ ,
. ~· ·:. · . ~· ·:~~ · . .~·
..:· q ~ . · q, _~ ¸~· . .¡
.¸~q._~:·. .q._.
.e..:..~ ~.~.~¸_~¸
.,q~:~ ..|...'.¸,.:.·.
~e . ·: ._ ~:· . . .~:
. ~ .¸¸ .·~ ~ ._. .. q~e .
~_.:...¸.e ·:.~:.~ ~ ._ .
..q~~~~ ..|...'.¸,.:
..¸.~¸~e ..|... .q:· .q~e .
. ~.~ ~. .~ ~ ._ eq · . e
...:q~e..~.~._eq·.e
~~ ~ ~. . ~ ~_. ¸. ~ .· .
. .q:·..q:...~:·..~e
q ¸.,~ ...:·,.:.:.~.
.e. .,:~_.. .~.~q.e.
~..~.~~e·:..e...|.
..¸._.·. .q:·..e.q·._.
q~e .~ . .~ . ~ q q· ·~
.~ . :~· _._. . .· ..¸.e . q
~e . ~ .| . q· .~:· . q ¸
~·.·e: ~~ q:.·.,.~.,
~¸ q:. · . , .~· ~~ .:.e ''
e FAO . ..~,.~:~,q .
Agribusiness and Marketing
Consul tant Mr.Andrew
W.Shepherd ~ ._.:._.
. . ~ , ..·.~.· ~.,_e·
-q:~~~·. .._e¸_.¸¸,e ...
~ · . _._ _. ¸¸ q, ~ , ~ · . . _.~ .
_.¸¸,e q.·_._,e ...~_.¸¸
.,_._.~:.~:·.,e._..¸:.
~ · .~· .. .... :.._ _e.
._.
~.q._~...:~.¸~.: ..¸.
.,..·q:.~·.~.¸~~.~
.¸:. ..¸.~~.·q: .~·.
~.¸~~.~.¸:.~ .~:·.
.¸:..:.~ ·~ . · .. · q:
. .. :· , . · q · .¸:.. . q q,
~.q._~ ._. . ~. .q~.,_e· ._.
. ~. .|~ . · .:..:¡...
,_ .¡....¸:._ e· · ~ _ ., _
. ...|· ..|~· ...q, . ~. ._~:· .
Mr.Andrew W.Shepherd ~
.~._.:._.
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
Oil & Gus Ixpo Aims to Ðevelop Sopply
Chuin Ior Locul Oil und Gus Ico-System
Wai Linn Kyaw
T
he inaugural edi-
tion of Oil & Gas
Myanmar is aiming
Lo be u key drIver In esLub-
lishing a holistic supply
chain of equipment and
services for the burgeon-
ing oil and gas industry in
Myanmar.
The exhibition, to be
held from October 15-17,
will feature more than 100
exhibitors from 22 coun-
tries covering products
and expertise catering to
the upstream, midstream
and downstream sectors
of the industry, the organ-
isers said.
“Myanmar opening
the industry to interna-
tional energy companies,
has triggered a growing
demand for the correct
equipment and capa-
bIIILIes In LIIs heId. WILI
much of this expertise re-
siding outside the shores
of Myanmar, Oil & Gas
Myanmar has gathered
a host of internationally
known IndusLry numes
introducing the necessary
equipment and services
for each sector of the oil
and gas value chain,” said
CIuu Buck CIeng, projecL
director for engineering
events of organiser Singa-
pore Exhibition Services
(SES).
WILI LIe mujorILy oI LIe
oil and gas industry in My-
anmar currently focused
on upstream activities,
Oil & Gas Myanmar has
pooled together exhibi-
tors including 3D-GEO,
Downhole Products,
¡IuId ¡ncIusIon, ¡onesLur
Triplefast, Sensitron Sin-
gupore und TecInIcs Oß-
shore Engineering.
These exhibitors will
showcase a range of up-
stream products and ser-
vices including geophysi-
cal products and services,
geological studies and
consulting, modern tech-
noIogIes oI drIIIIng, oß-
sIore und onsIore heId
exploitation, seismic data
acquisition and surveying
among many others, SES
said.
Keven AsquILI, CEO
and exploration specialist
at 3D-GEO, said: “Hav-
Ing worked wILI muny oI
the international energy
companies currently ex-
ploring in Myanmar, we
can certainly assist petro-
leum explorers in Myan-
mar by improving their
seismic data quality and
geotechnical evaluation
workßows Lo opLImIse
basin-wide and prospect
evaluations.
¨We Iope Lo reIresI our
knowIedge oI Myunmur
and collaborate with the
Myanmar Oil and Gas
EnLerprIse (MOGE) und
local industry partners to
LuckIe LIe cIuIIenges oI
exploring and developing
petroleum resources.”
Peter Pratabh, business
development manager of
Downhole Products, said
there has been a grow-
ing demand in Myanmar
for Downhole Products
equipment.
¨We ure very opLImIsLIc
about the current oil and
gas industry in Myanmar
und ure IookIng Iorwurd
to further development of
its upstream sector.”
¡ocuI oII und gus servIc-
es companies Parami En-
ergy and Smart Techni-
cal, along with Myanmar
Oil and Gas Enterprise
(MOGE) wIII muke up LIe
local presence at the expo.
Indiu-Myunmur Ierry Service
to Start in October
Aye Myat
A
ferry service be-
tween India and
Myanmar to facili-
tate cargo and passenger
movement between the
two countries will begin
next month, an Indian
minister said.
The proposed cargo
ferry service will connect
the two countries through
India’s port city Chennai
and Myanmar’s commer-
cial hub Yangon.
It will open a sea route
and strengthen economic
ties for land-based trade
worth about billions of
dollars, India’s Minis-
ter for Road Transport,
Highways and Shipping
NILIn GudkurI LoId ¡ndIun
media.
State-run Shipping Cor-
poruLIon oI ¡ndIu Is IIkeIy
to deploy a 1,200 TEU
(LwenLy IeeL equIvuIenL
unIL) vesseI, wIIcI wIII
connect the ports of Co-
Iombo, CIennuI, KrIsInu-
patnam and Yangon.
India’s Ministry of
Shipping has also report-
edly formalised a coastal
shipping arrangement in
2014, which would boost
the coastal movement of
vessels between the two
countries.
Chennai Port in India.
o
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2
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c
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Myanmar Summary
Myanmar Summary
Myanmar Summary
Mining Ixports Rising
Phyo Thu
M
yanmar has
earned $281.15
million from
mining product exports
during April 1 to August
15, according to the Min-
istry of Commerce.
This is $48 million
higher than that of last
year. Raw minerals, rath-
er than processed prod-
ucLs, mude up LIe buIk
oI LIe exporLs, U KIIn
Maung Han, secretary of
the Myanmar Federation
of Mining Associations,
told Myanmar Business
Today.
“Myanmar is majorly
exporting seven min-
ing products and most of
them in raw form due to
Iuck oI processIng LecI-
nology. If foreign compa-
nies are to come [into the
country] certain restric-
tions must be eased,” he
added.
Jade exports accounted
for $175.68 million while
metal and metal ore ex-
ports fetched $48.93 mil-
lion, jewellery exports
$4.95 million and other
mineral exports garnered
$51.58 million.
“China is the biggest
destination for jade ex-
ports. The exports are
expecLed Lo IIke us mIn-
ing operations have been
allowed to resume in
KucIIn sLuLe,¨ un IndusLry
insider said.
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
"Iorced Luboor¨ RiIe in Muluysiun
Ilectronics Iuctories: Report
Trinna Leong
N
early a third of
some 350,000
workers In Mu-
laysia’s electronics indus-
Lry - u crucIuI IInk In LIe
international consumer
suppIy cIuIn - sußer
from conditions of mod-
ern-day slavery such as
debt bondage, according
to a study funded by the
US DepurLmenL oI ¡ubor.
The survey by Verite,
an international labour
rights group, found that
ubuse oI workers` rIgILs
– particularly the tens of
thousands from low-wage
counLrIes IIke NepuI, My-
anmar and Indonesia –
was rife in a $75-billion
sector that is a mainstay
of the Southeast Asian
country’s export-driven
economy.
Several US, European,
Jupunese und SouLI Ko-
rean multinationals have
operations in Malaysia,
including Samsung Elec-
LronIcs Co ¡Ld, Sony Corp,
Advanced Micro Devices,
¡nLeI und BoscI ¡Ld.
Some big brands use
suppliers such as Flex-
tronics, Venture Cor-
poration, Jabil Circuit,
and JCY International
Lo muke purLs Ior smurL-
phones, computers and
printers.
The US government
funding adds credibility
Lo u reporL wIIcI Is IIkeIy
to come as a surprise to
many consumers.
Malaysia is a middle-
income country where la-
bour standards have been
seen as better than in
some of its Asian neigh-
bours such as China,
where questionable la-
bour practices have drawn
scrutiny in recent years.
Verite did not single out
any companies in its re-
port, but blamed a system
in which government and
industry policies have giv-
en Malaysian recruitment
hrms IncreusIng conLroI
over workers` puy und
other conditions.
“These results suggest
that forced labour is pre-
sent in the Malaysian
electronics industry in
more than isolated inci-
dents, and can indeed be
characterized as wide-
spread,” the group said.
Several US companies
with operations in Ma-
laysia told Reuters they
could not comment un-
til seeing the full report.
An ¡nLeI spokesmun suId
mosL oI LIe cIIpmuker`s
8,200 employees in the
country were Malaysian
and it did not use contrac-
tors. Flextronics said it
was aware of issues relat-
ed Lo IoreIgn workers und
had “rigorous” policies to
prevent abuses.
The study comes three
months after Malaysia
was downgraded to Tier
3 in the US State Depart-
menL`s unnuuI TrumckIng
in Persons report, which
cILed u Iuck oI progress
in protecting the rights of
about four million foreign
workers.
The report, based on
InLervIews wILI ¸o1 work-
ers, found that 28 percent
of employees were in situ-
ations of “forced labour”,
wIere work Is coerced
through factors including
indebtedness from exces-
sive fees charged by re-
cruiters.
TIuL hgure rose Lo ¸z
percenL Ior IoreIgn work-
ers, who are often mislead
about salary and other
conditions when they are
recruited in home coun-
tries, and are commonly
charged excessive fees
that lead to indebtedness.
Verite said the numbers
were based on conserva-
LIve dehnILIons. ¡L Iound
LIuL ;¸ percenL oI workers
displayed “some charac-
teristics” of forced labour.
Stabi li ty, low costs
Malaysia’s electronics
and electrical industry
made up 33 percent of
exports in 2013. In 2011,
foreign investment in
the sector accounted for
$2.68 billion, or 86.5 per-
cent of the total.
MuIuysIu Ius benehLed
in recent years from a rep-
utation for stability and
low costs, gaining fresh
InvesLmenL uILer ßoods In
Thailand in 2011 crippled
factory operations there.
On uveruge, workers In
the survey were found to
have paid 2,985 ringgit
($qz¸) |$1=¸.z1 rInggIL|
Lo brokers In LIeIr Iome
country and in Malay-
sia as payment for their
passage and jobs. That
is more than the average
per-capita annual income
In NepuI.
UnubIe Lo ußord u Iump
sum upfront, more than
Lwo LIIrds oI workers wIo
puId broker Iees Iud Lo
borrow money.
One In hve ImmIgrunLs
were workIng more LIun
the suggested 60 hours
oI overLIme u week - LIe
industry’s internation-
al standard limit – the
group said. Malaysian law
uIIows empIoyees Lo cIock
up to 72 hours of over-
time.
Malaysian laws have
been amended in recent
years to encourage the
growth of recruitment
companies that provide
workIorce servIces Lo
multinationals, including
paying, accommodating
and disciplining employ-
ees.
¨¡IubIIILy over vIoIu-
LIons oI worker rIgILs Is
obscured, creating vul-
nerability on the part of
LIe worker Lo expIoILuLIon
and abuse,” the group
said.
TIe group Iound work-
ers’ passports were often
conhscuLed by recruIL-
menL hrms, wIIcI Is II-
legal in Malaysia. Some
hrms were Iound Lo
charge more than $1,000
Myanmar Summary
R
e
u
t
e
r
s
Ior u worker Lo ¨borrow¨
his or her own passport.
Reuters
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~ . ~ Sony Advanced
Micro Devices Intel .·
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
Tin Smelters in Indonesiu Holding oot
Ior Premioms to LMI
Yoga Rusmana
T
in producers in In-
donesia, the largest
exporter, are hold-
ing out for sales of the
metal above the bench-
murk spoL ruLe In ¡ondon
to try to counter a decline
in prices to the lowest
level in more than a year.
Futures rose.
“It’s a semi-morato-
rium,” Indonesia Com-
modity and Derivatives
Exchange Commissioner
¡enny WIdjuju suId In
un InLervIew In JukurLu.
Smelter members on the
¡CDX were oßerIng meLuI
at $500 to $600 a metric
ton above the contract
on LIe ¡ondon MeLuI Ex-
cIunge, WIdjuju suId by
phone yesterday. That’s
more than the $398 pre-
mium paid at the end of
last month.
The ICDX is the only
exchange in Southeast
Asia’s largest economy
that’s permitted to trade
LIe rehned meLuI used In
puckugIng und eIecLron-
ics before it’s exported.
TIn In ¡ondon reLreuL-
ed by the most in more
than a year in August
us sLockpIIes expunded
for a fourth month. The
JukurLu-bused excIunge
had transacted no tin this
month until yesterday,
when cargoes of the metal
were soId ubove LIe ¡on-
don price.
“Indonesian sellers are
not prepared to follow the
¡ME prIce down,¨ PeLer
KeLLIe, u reseurcI munug-
er at St. Albans, England-
based industry group
¡TR¡ ¡Ld., suId by e-muII
yesLerduy. ¨¡ LIInk LIere Is
a similar thing happening
in the Chinese domestic
murkeL, wIere busIness Is
extremely slow.”
Tin for immediate deliv-
ery fell 4.4 percent on the
¡ME In AugusL, und ex-
tended losses to $20,897
a ton on Sept. 9, the low-
est close since July 2013.
The metal increased 0.4
percent to $21,043 yester-
day as trades on the ICDX
totaled 1,150 tons, with
1,005 tons sold at $21,515
a ton and the balance at
$21,615. Three-month fu-
tures rallied as much as 1
percent to $21,280 on the
¡ME Loduy, und Lruded uL
$21,260 at 12:09 p.m. in
¡ondon.
Mor e Str ength
“They’re pulling it out
there to just see how the
murkeL reucLs,¨ DuvId
¡ennox, u resource unu-
lyst at Fat Prophets, said
from Sydney today. “If
there’s no real violent
reaction to what they’re
wanting to do, then that’s
an indication that there’s
a little more strength
In LIe murkeL LIun we
thought.”
TIe weuk Lrude on LIe
ICDX was purely because
oI LIe prIce, JubIn Suh-
anto, chairman of Asso-
ciation of Indonesian Tin
Exporters, said by e-mail
yesterday. The associa-
tion groups 18 smelters of
the 22 that trade through
the bourse.
“Smelters don’t want
to sell cheap because ore
prices are very high,” said
WIdjuju. ¨SmeILers preIer
Lo buIId up sLockpIIes wILI
the current low price, on
expectations that it will
rise to a decent level,
probably at $23,000.”
Mi ni mum Pr i ce
The ICDX sets a daily
minimum price for tin
contracts, with an ex-
change committee agree-
ing the rate. Sales made
through an auction sys-
tem can’t be made below
the daily level, which is
omcIuIIy known us LIe
Suggested Opening Bid.
The government made ex-
porters trade through the
excIunge In un eßorL Lo
challenge the dominance
oI LIe ¡ME bencImurk.
Trade on the ICDX to-
taled 4,855 tons in Au-
gust, 3,810 tons in July
and 4,660 tons in June,
exchange data show. Be-
fore yesterday, the last
trade was on Aug. 27,
when the PB300 contract,
the most active, was at
$22,080 a ton. That was
$¸q8 ubove LIe ¡ME spoL
price that day, Bloomberg
calculations show.
¡nvenLorIes Lrucked
by LIe ¡ME cIImbed q.q
percent to 12,295 tons
in August. The reserves
dropped 1,085 tons to
10,210 tons yesterday, the
lowest since May, accord-
Ing Lo ¡ME duLu compIIed
by Bloomberg.
Global demand for tin
will outstrip supplies for
u hILI yeur In zo1q, BNP
Paribas SA said in May
reporL. TIe murkeL wIII
Iuve u gIobuI dehcIL oI
13,000 tons this year and
10,000 tons in 2015, ac-
cordIng Lo LIe bunk.
Bloomberg
EmpIoyees observe as moIten tin is poured during casting at a processing faciIity in Mentok, Bangka
IsIand, Indonesia.
D
im
a
s
A
r
d
ia
n
Myanmar Summary
CoHee Rully Spors Top Shipper
to Expand Abroad
Swansy Afonso
I
ndIu`s bIggesL coßee
exporter is expand-
ing in Vietnam to help
boosL prohL Lo u record us
easy access to raw mate-
rials and regional trade
agreements drive sales
growth.
CC¡ ProducLs (¡ndIu)
¡Ld. (CC¡P), wIose sIures
have leaped 162 percent
this year, will produce
5,000 tons this year at its
Vietnamese plant with an
annual capacity of 10,000
tons, and raise it further
in the next three years, C.
Rajendra Prasad, chair-
man and managing di-
rector of the Hyderabad-
based company, said in an
interview.
CC¡ ProducLs Is ex-
panding capacity in Vi-
etnam, the world’s sec-
ond-biggest grower of
the beans, amid a rally in
prices spurred by concern
that drought in Brazil will
sIrInk suppIIes Irom LIe
world’s largest grower.
Forecasts for record crops
in Vietnam and India will
guurunLee CC¡ ProducLs
raw materials and bolster
eßorLs Lo wIn more buyers
Ior InsLunL coßee suppIIes
domInuLed by NesLIe SA
und KruIL ¡oods Group
Inc.
“The plant in Vietnam
has added to our capacity
and also reduced costs,”
Prasad said in a phone
InLervIew. ¨We ure LIe
IurgesL ImporLer oI coßee
in India from Vietnam for
the last 15 years. That’s
why Vietnam invited us to
put up this plant and gave
us all the concessions.”
The company, which
has built infrastructure
to produce 20,000 tons
oI coßee unnuuIIy, pIuns
to increase production to
85 percent of its capac-
ity in the Southeast Asian
country, he said. The Vi-
etnamese government
Ius grunLed CC¡ u Iour-
year tax holiday, he said.
The plant’s location in
LIe green coßee Iub oI
Duk ¡uk muy suve CC¡
Products about $50 a ton
in logistics cost, Abhijit
R. AkeIIu und AnubIuv
Goel, analysts at Mum-
buI-bused brokeruge ¡¡¡¡
¡Ld., suId In u reporL on
Sept. 8.
The company will bene-
hL Irom LIe growLI In LIe
InsLunL coßee consump-
LIon In murkeLs sucI us
Southeast Asia, while Vi-
etnam’s free trade pacts
with countries in the re-
gIon wIII boosL prohL, LIey
said. Bloomberg
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.,..¸:. _.·~~.:_.·..·~~
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Myanmar Summary
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
Two Yeurs uIter Protests, "Chinu Risk¨ Still Huonts Jupun Iirms
Norihiko Shirouzu
and Kazunori Takada
A
mid a revival in
sales of Japanese
goods in China
und LuIk oI renewed In-
vestment from some big
hrms sucI us ToyoLu, u
dusLy IndusLrIuI purk neur
NunjIng oßers u coId reuI-
ILy cIeck on LIe IeuILI oI
ties between Asia’s two
biggest economies.
DespILe oßerIng renL-
Iree premIses Ior LIe hrsL
three years to compa-
nies expanding to China,
the Japan Automotive
Parts Industrial Cent-
er (JAP¡C), seL up In Dun-
yung, zoo km (1zo mIIes)
west of Shanghai, in 2011,
remains near empty.
A visit to the Danyang
purk, LIe bruIncIIId oI
former Toyota Motor
Corp execuLIve Kuzuo Az-
uma, challenges the view
that Japan Inc’s engage-
ment with China is slowly
recoverIng Irom LIe sIock
of anti-Japanese protests
that erupted two years
ago.
“Do we see any ray of
Iope?¨ usks Azumu, wIo
has spent more than 20
years in China, mostly
building factories for Toy-
ota. “To be honest, none
at the moment. Japan’s
IuII oI rIsk-bIrds cIIrpIng,
'CIInu rIsk`.¨
Azuma’s vision was
to transplant up to 400
uuLo purLs mukers Irom
Japan’s industrial heart-
land, to help them survive
the global shift in car de-
mand to emerging econo-
mies. China, which is ex-
pected to generate annual
sales of well above 30 mil-
lion vehicles by 2020, ap-
pears the obvious choice
Ior sucI hrms Lo esLubIIsI
a base.
But JAPIC has only 24
parts producers in op-
eration – half of what had
been envisioned by now.
Azuma and the Danyang
local government, which
has invested at least 220
mIIIIon yuun ($¸6 mII-
IIon) In LIe projecL, Iuve
cuIIed oß LIe second und
third phases of construc-
tion.
They have also decided
to drop “Japan” from the
purk`s nume und Lo Lry Lo
woo Taiwanese and other
suppliers with ties with
Japanese producers.
1noestment Slump
Tensions between To-
kyo und BeIjIng spIked In
September 2012 after Ja-
pan nationalized a small
chain of disputed islets in
the East China Sea, trig-
gering sometimes violent
demonstrations and a
boycott of Japanese goods
by some Chinese consum-
ers.
Firms such as Toyota,
Hondu MoLor Co ¡Ld und
NIssun MoLor Co ¡Ld suw
sales slump.
Japan’s direct invest-
ments to China fell nearly
20 percent in 2013 and
dropped another 40 per-
cent to 300.8 billion yen
($z.8 bIIIIon) durIng LIe
hrsL IuII oI zo1q com-
pared with a year earlier.
Southeast Asia became
a primary destination
for Japanese investment,
attracting almost three
times the amount going
Lo CIInu. DurIng LIe hrsL
half of this year Southeast
Asia attracted 878.1 bil-
lion yen worth of invest-
ments.
Jing Donggen, a senior
Danyang government of-
hcIuI In cIurge oI LIe eco-
nomic development zone
where JAPIC is located,
LIInks LIe downLurn In
Japanese interest is tem-
porary.
¨We`re conhdenL In
this program because
there is limited growth
opportunity for Japan’s
small- and medium-sized
companies in their home-
land,” he said.
There is some recent
evidence from bigger
Japanese companies to
support that hope, with
LIe mujor cur mukers,
for example, seeing some
pIck-up In suIes und muk-
ing bullish forecasts.
Honda is aiming to
boost volumes by 19 per-
cent to 900,000 vehicles
this year. Toyota, which is
also trying to boost sales
by about 20 percent to 1.1
million vehicles in 2014,
is considering adding
manufacturing capacity
again, possibly building a
new assembly plant by as
early as 2018.
Yet smaller companies
remain wary.
Kyowu MeLuI Works Co.,
a manual transmission
suppIIer In YokoIumu,
passed up an opportunity
to expand its operations
In WuIun In zo1z, opLIng
instead for a 2 billion yen
move to open a plant near
JukurLu.
“If there are political
conßIcLs In CIInu, wIo
knows. We mIgIL noL be
able to repatriate what
we have invested,” said
Chief Executive Masumi
TukusIImu.
Expots Leooing
In the short-term, it
may not matter much
to China that Japanese
hrms, wIIcI Iuve Iong
been the top direct inves-
tors in China excluding
Hong Kong und TuIwun,
ure now IoIdIng buck.
Investors from other
economies, including Sin-
gupore und SouLI Koreu,
ure eugerIy LukIng up LIe
sIuck. AILer Lwo decudes
of development, China’s
auto industry is also less
reliant on foreign exper-
LIse und know-Iow.
But in the longer run,
the slowing Japanese in-
vestment could deal a
blow to the development
of Chinese technology, es-
pecIuIIy II CIInu Iooks Lo
expand in more cutting-
edge areas, such as hydro-
gen fuel propulsion.
To be sure, most Japa-
nese companies aren’t
about to give up on Chi-
na completely. Many of
those who have set up op-
erations at JAPIC remain
positive.
Konun Kogyo K.K., u
small electrostatic paint-
ing company based near
Toyota City, began op-
erating a metal painting
line in Danyang with 50
workers In eurIy zo1z und
is contemplating opening
another line to double ca-
pacity.
“It would be a lie if I
said we are not concerned
about the political ten-
sion between Japan and
CIInu,¨ suys Konun`s
Danyang-based manager
HIromILsu OzukI. ¨BuL ¡
LIInk we mude LIe rIgIL
decision to open shop
here.”
But other evidence from
LIe ground Is bIeuk. ¡n
Beijing and Shanghai,
there is an exodus of
Japanese expatriates and
their families, though air
pollution and a general
economic slowdown are
also blamed, along with
the political tensions.
The number of Japa-
nese nationals living in
Shanghai and neighbor-
ing Jiangsu fell 18 percent
to 60,300 over the year
through October 2013,
LIe hrsL decIIne sInce LIe
Japanese consulate in
Shanghai began conduct-
ing the survey in 1994.
The Japanese school of
Beijing’s student popu-
lation has fallen to 480,
from more than 600 last
year.
Azuma bemoans that
Jupunese hrms no Ionger
uppeur cupubIe oI IookIng
at China objectively.
“If there are 100 news
items about China and
10 are bad, all 10 items
wouId muke LIe evenIng
news, but the rest is ig-
nored because anything
negative on China sells in
Japan,” he said. Reuters
~, ~ . · · ~ · ·¸., ~ , .. _ .
.¸:. .q:·.~:._.,~~.:._
.·~~ ~e~:~. ·¸.,
~.~_~..¸:.~ q·..._.¸...
~.. .¸:._.¸. . q, .. ... ..
.¸:. _.,..:.¸,~· ,,·¸·q
e,~~.,..: .~.~,~..
~ ~:q -. .. :..q.~· ~:.
~_~......··~_~:..~.
.q.~ ~q~~·. ..e_..,
._.
~ e ~:~:.. . ·, .-~.
..:·~q:q.e:·. ~,~~
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~.~:· ~·_ .e: ·:...:
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·¸.,~:.~.~~.·.·~..
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.··~· ..·,..¸¸··...:
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~~ e~.· ..:~ . . .q.
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._.,·.~._ ·¸.,~:.·~
. . . .¸:.. · ~.~ ~. e q
..: ··~..· ~_.:.~.~
~. · . _ e_ ._ . . .¸:. ~:.
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~¸ , .. ~,_ .·e ~ ·¸ ., ~
. · . · ._~:· .¸~~¸~ · ._~_:
_...,:~.·. ~~¸¸.· .··¸·.
~~_~:.~· ~·..:..¸:...'
..| ~ ~: ·¸ ., ., ~¸ · .q.
_ .· .·, ..: .. _ .. .¸ :.. ·
·¸.,.._. ..~..:~..¸:.
..'..|~ . ._ .
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
16
Myanmar Summary
Biggest Bunks Suid to Overhuol
IX Truding AIter Scunduls
Julia Verlaine and
Gavin Finch
T
he world’s biggest
bunks ure overIuuI-
ing how they trade
currencies to regain the
trust of customers and
preempL reguIuLors` eßorLs
to force changes on an in-
dustry tarnished by allega-
tions of manipulation.
Barclays Plc, Deutsche
Bunk AG, GoIdmun SucIs
Group ¡nc., RoyuI Bunk oI
Scotland Group Plc and
UBS AG, which together
account for 43 percent of
foreign-exchange trading
by bunks, ure InLroduc-
Ing meusures Lo muke IL
harder for dealers to prof-
IL Irom conhdenLIuI cus-
tomer information and
Luke udvunLuge oI cIIenLs
in the largely unregulated
$5.3 trillion-a-day cur-
rency murkeL, uccordIng
Lo peopIe wILI knowIedge
of the changes.
Bunks Iuve cupped wIuL
employees can charge for
exchanging currencies,
limited dealers’ access to
information about cus-
tomer orders, banned the
use of online chat rooms
and pushed trades onto
electronic platforms, ac-
cording to the people, who
usked noL Lo be IdenLIhed
because they weren’t au-
thorized to discuss their
hrms` prucLIces.
¨TIIs Is hnuIIy brIngIng
LIe ¡X murkeL InLo LIe
21st century,” said Tom
KIrcImuIer, u IeIIow In LIe
hnuncIuI-murkeLs group
uL LIe ¡ondon ScIooI oI
Economics who special-
izes in the governance of
bunks. ¨WIuL we`re see-
ing is a modernization of
processes that probably
should have been brought
in 15 or 20 years ago.”
Benchmar k Ri ggi ng
TIe bunks ure ucLIng
after authorities on three
continents opened probes
into allegations that deal-
ers Ieuked conhdenLIuI cII-
ent information to coun-
LerpurLs uL oLIer hrms
and colluded to rig cur-
rency bencImurks used
by money managers. U.S.
und U.K. reguIuLors ure In
LuIks Lo seLLIe some oI LIe
probes us soon us Novem-
ber. Prosecutors in the
U.S. ure prepurIng Lo hIe
charges against traders as
soon as next month, two
peopIe wILI knowIedge oI
the matter said.
The scandal may cost
lenders as much as $15
bIIIIon In hnes, uccord-
ing to Chirantan Barua,
an analyst at Sanford C.
BernsLeIn ¡Ld. In ¡ondon.
Regulators are probing
allegations that traders
shared data about orders
wILI peopIe uL oLIer hrms
using instant-message
groups with names such
as “The Cartel” and “The
Bandits’ Club,” and with
clients in a bid to win
business. One focus is
whether dealers sought
Lo move LIe WMJReu-
ters rates in their favor by
pushing through trades
before and during the
60-second windows when
LIe bencImurks ure seL.
Britain’s Financial Con-
duct Authority this year
ordered bunks Lo revIew
LIeIr ruIes ubouL conßIcLs
of interest in the foreign-
excIunge murkeL, u per-
son wILI knowIedge oI LIe
LuIks suId. TIe reguIuLor
also plans to evaluate the
conLroIs LIuL hrms Iuve
over traders around the
LIme bencImurks ure seL,
according to its business
plan. Chris Hamilton, a
spokesmun Ior LIe ¡CA,
declined to comment.
'Look Cood'
¨TIe bunks ure very
concerned about what the
regulators are going to do,
und LIIs mukes LIem Iook
good,¨ suId CoIIn Mc¡eun,
founder and chief execu-
LIve omcer oI SVM AsseL
MunugemenL ¡Ld. In Ed-
inburgh, which oversees
more than $900 million.
¨Muybe LIey LIInk IL pro-
tects them somewhat
from future regulatory
changes.”
RBS and Barclays this
year stopped traders and
salespeople from seeing
colleagues’ forthcoming
deuIs und LIeIr bunks` buy
and sell orders in aggre-
gate, four of the people
said. Such information is
useIuI Ior Lruders IookIng
to protect themselves or
prohL Irom IuLure murkeL
moves, they said.
RBS now segregates cli-
ent requests for currency
Lrudes uL LIe bencImurk
rate from the rest of the
order book, uccordIng Lo
two of the people. Only
the trader handling the
order at the reference
rate is able to see it. The
EdInburgI-bused bunk
uIso sLopped LukIng or-
Banks have capped what empIoyees can charge for exchanging currencies, Iimited deaIers` access to
information about customer orders, banned the use of onIine chat rooms and pushed trades onto eIec-
tronic pIatforms.
J
in

L
e
e
/
B
lo
o
m
b
e
r
g
Wul-Murt to Sell Aostruliun Rivul to Kinder
Sorprise Chocolutes in LS
Thuy Ong
A
small Australian
confectioner will
start selling its
chocolate encased toys
in the United States from
OcLober, cruckIng u po-
LenLIuIIy IucruLIve murkeL
wIere ILs beLLer-known
gIobuI rIvuI, KInder Sur-
prise chocolate eggs, are
outlawed.
Yowie Group said that
WuI-MurL SLores ¡nc, LIe
world’s largest retailer,
will trial its “Yowie” choc-
olates across 50 stores in
Texas. If the trial is suc-
cessIuI, WuI-MurL wIII
start selling Yowies na-
tionwide.
The company did not
give further details.
Shares in Yowie Group
jumped as much as 18.5
percent after the compa-
ny announced the tie-up
wILI WuI-MurL. TIe sLock
has quadrupled this year,
In u ßuL AusLruIIun sIure
murkeL.
Yowie Group is based in
Perth in western Austral-
Iu. ¡L Ius u murkeL cupI-
talisation of around A$66
mIIIIon ($6o mIIIIon) und
currently does not export
its chocolates outside
Australia, according to its
website.
KInder eggs, mude by
privately owned Italian
confectionery company
Ferrero SpA, are banned
in the United States be-
cause of the potential
cIokIng Iuzurd Ior In-
fants.
The chocolates, howev-
er, are readily available in
many countries across the
world. Since its launch
in 1974, Ferrero has sold
neurIy ¸o bIIIIon KInder
Surprise eggs worldwide,
the company said on its
website.
Yowie Group’s deal with
WuI-MurL comes u Iew
months after the com-
pany won the only patent
granted so far by the US
Food and Drug Admin-
istration for a chocolate-
encased toy.
Yowies were originally
made by Cadbury, but the
confectioner discontinued
the brand in 2005 after a
legal dispute with its crea-
tors. Seven years later, in
2012, Yowie Group was
formed and relaunched
the product.
Yowies are popular
among Australian chil-
dren because they include
miniature replica toys of
endangered species and
other wild animals, as
well as educational mate-
rial on conservation.
“The core brand mes-
sage to ‘save the natural
world’ is still relevant to-
day,” Trish Fields, a di-
rector of Yowie Group,
told Reuters. Reuters
Myanmar Summary
ders uL WMJReuLers
rates for some emerging-
murkeL currencIes, wIIcI
are more vulnerable to
manipulation because
they’re less widely traded,
the people said.
Bloomberg
~. : ~_ ~ .. .·~ _ ~ ..¸ :.
._ ~.._.¸..¸:.-e_~_.
~ _.,._qqq,.· ~:~:.·
.¸:.-~._.:·.~..¸:. e~:.
....e:..:·..¸:..~·. ¡..:
..:· q ~ . · q, ..¸ .~ ~ ~
.¸¸.~·..e:.,._e ....
.¸ :._ e· . ~ :~¸ .· ..¸~ q
..:.·._~...e.q...·,.
~ _.¸_.·._.:·....¸:. _.¸..
.:._e .q._.
·~ .¸:.-.· ._~.. . e .q.
..¸.~ ~ ,, q:. · . , .~ ..:·
q~....,..: Barclays Plc
DeutscheBank AG Goldman
Sachs Group Inc Royal
Bank of Scotland Group Plc
.· UBS AG ~._ .·._~.
. . e ... . .¸:. ~.,_ e·
_~._~.·,..¸¸...q...:~
_e...: ~..,.¸· ..'.:
¸ ... , ·q . e ~. ~. e
q .,._ .· ._~.. . e .q...¸.
~~~· .e:~._-.¸¸¸~~
~.¸~ ~.~ .¸:.~ qe ~_.~
· ~ _.· ..¸¸ ..q ..q, ~, .~ .
,_ ... ..¸:.~ .~· .e: ..:·
.:.._e .q._.
.· ._ ~.. . e . .¸ :.._
.e:~ ._ .¸:.-.¸¸ ¸~ ~ ~.¸~
~.~.¸:.~ ..|~_~:...~:
~_.:.·~. ~.·~..¸:..·
....|·._ .·._~....¸..,..¸:.
e,~._~._ ~:·. ....¸~.¸:.
~..' ~~_~..... ~:~:
. · .¸:.~ . .. ... .... .¸:.
_.¸...:_~._.
_..._~..¸..q.:. . ·, .
~...~..._ ~~¸¸.~_.~
~.:.~.:~·..~:·..,_..
_ . ¸· ·~ . . ·, . Kinder
Surprise -..¸:~.~¡.¸:.
~· . . . ~ .· . ·:.q..: ~..
q~,_._.·:·.~· ,·.~-
..¸:~.~_e_·:...:~,.
.¸:.~ .~· .q:· ..¸ ._ _ e.
._~:·. .q._.
Yowie ~..._ ,·.~-
Yowie ..¸:~.~ .¸:.~ ~. :
~_~ .. ..~ . .q:· ..¸._
~~.~_._,eq .· ..|·.
¸~ ~· .q:·..¸.:.._
_e.._~:·. ._.:_~:.._. _
.. ... .q:· ..¸. .~:· _.· .|~
Yowie .¸:.~ .··~.~,.~·
.q:· ..¸ . :.._ _ e. ._ ~:· .
.q._.
.~|.~ . · .~ ~ . ~ ._~:· .
._~_:_...,:~ Yowie ~..
- qee:.¸:..: ~· ... ¸
q:. · . , . ..¸.. , ._.· ~~ .:
._~:·. .q._.
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
New Ðutu Shows Americuns' Incomes Still
Stagnant After Recession
Jason Lange
I
n what has become
a recurring theme in
America’s long slog
buck Irom LIe zoo;-
09 recession, most US
households again saw
no noticeable increase in
their income last year.
A report from the Cen-
sus Bureau showed the
country’s median house-
hold income edged up just
$180 last year to $51,939,
a gain deemed statistical-
Iy InsIgnIhcunL.
Income at the median,
meaning half the coun-
try earned more and half
earned less, has declined
nearly $5,000 since 2007
when the nation fell into a
deep downturn.
TIe hgures muke IL
easier to understand why
muny AmerIcuns LIInk
the United States re-
mains in recession and
wIy PresIdenL Buruck
Obama’s approval ratings
have hovered near 40 per-
cent.
Obumu Look omce u
few months before the
recession ended in June
2009, and a frustratingly
slow economic recovery
has vexed his presidency
and could weigh on his
DemocruLIc PurLy In No-
vember’s congressional
elections.
Congress und LIe WIILe
House raised taxes on
most Americans in 2013
wIIIe cuLLIng buck gov-
ernment spending, and
the austerity was a major
IucLor IoIdIng buck eco-
nomic growth.
¨We ure usIng u coßee
cup to dig ourselves out of
u bIg IoIe,¨ suId ¡uwrence
Mishel, president of the
Economic Policy Insti-
LuLe, u IIberuI LIInk Lunk
In WusIIngLon.
¡usL week`s reporL, Iow-
ever, did point to some
encouraging develop-
ments.
The share of Americans
living in poverty fell for
LIe hrsL LIme sInce zoo6,
dropping a half percent-
age point to 14.5 percent.
The Hispanic population
registered the biggest de-
cline.
NeverLIeIess, LIe pover-
ty rate was still 2 percent-
age points higher than it
was seven years earlier.
¡usL yeur`s decreuse up-
peared driven by fewer
people relying on part-
LIme work, us LIe survey
found an additional 2.8
million Americans were
workIng IuII-LIme durIng
the year.
“That seems to be the
main thing,” said Charles
NeIson, un omcIuI uL LIe
Census Bureau.
A family of two adults
and two children is con-
sidered to be living in
poverty if they earn less
than $23,624 per year,
according to the Census
Bureau.
TIe WIILe House suId
the poverty rate would
be even Iower II IL Look
into account food stamps
und Lux breuks Ior Iow-
income Americans, but
IL ucknowIedged LIuL LIe
typical family hasn’t seen
its income recover from
the recession.
“The president will con-
tinue to do everything in
his power to ensure that
Iurd work puys oß wILI
decenL wuges,¨ WIILe
House economists Jason
Furman and Betsey Ste-
venson said in a blog post.
House Budget Com-
mittee Chairman Paul
Ryan, a Republican who
unveiled an anti-pover-
ty plan in July, said he
hoped the report would
spur WusIIngLon Lo ucL.
“If this report tells us any-
thing, it’s that we can do
better,” he said. Reuters
Boeing, SpuceX Win Contructs
to Boild 'Spuce Tuxis' Ior NASA
Irene Klotz and
Andrea Shalal
N
ASA will partner
with Boeing and
SpaceX to build
commercially owned and
operated “space taxis” to
ßy usLronuuLs Lo LIe ¡n-
ternational Space Station,
ending US dependence on
RussIu Ior rIdes, omcIuIs
said.
The US space agency also
considered a bid by private-
Iy owned SIerru Nevudu
Corp, but opted to award
long-time aerospace con-
tractor Boeing and Califor-
nia’s SpaceX with contracts
valued at a combined $6.8
billion to develop, certify
und ßy LIeIr seven-person
capsules.
Boeing was awarded
$4.2 billion to SpaceX’s
$2.6 billion. SpaceX is
run by technology entre-
preneur EIon Musk, uIso
LIe cIIeI execuLIve omcer
of electric car manufac-
turer Tesla Motors.
“SpaceX is deeply hon-
oured by LIe LrusL NASA
has placed in us,” said
Musk, u SouLI AIrIcu-
born, Canadian-American
billionaire. “It is a vital
step in a journey that will
uILImuLeIy Luke us Lo LIe
sLurs und muke IumunILy
a multi-planet species.”
The awards position
Boeing and SpaceX to
be ready for commercial
ßIgIL servIces In zo1;,
suId KuLIy ¡euders, mun-
uger Ior NASA`s Commer-
cial Crew program. She
said both contracts have
the same requirements.
“The companies pro-
posed the value within
which they were able to
do LIe work und LIe gov-
ernment accepted that,”
¡euders LoId reporLers.
TIe conLrucL Ius Luken
on new urgency given ris-
ing tensions between the
United States and Russia
over its annexation of the
CrImeu regIon oI UkruIne
and support for rebels in
eusLern UkruIne.
Boeing’s CST-100
spaceship would launch
ubourd ALIus ¸ rockeLs,
buIIL by UnILed ¡uuncI
Alliance, a partnership
oI ¡ockIeed MurLIn Corp
and Boeing. SpaceX,
which already has a $1.3
bIIIIon NASA conLrucL Lo
ßy curgo Lo LIe spuce sLu-
tion, intends to upgrade
its Dragon freighter to
carry astronauts.
NASA Ius suId LIuL In
uddILIon Lo LesL ßIgILs, LIe
awards would include op-
tions for between two and
six operational missions.
By ßyIng usLronuuLs
commercially from the
UnILed SLuLes, NASA
could end Russia’s mo-
nopoly on space station
crew transport. The agen-
cy pays $70 million per
person for rides on Rus-
sian Soyuz capsules, the
onIy ßIgILs uvuIIubIe Ior
astronauts since the re-
tirement of the US space
sIuLLIe ßeeL In zo11.
China, the only other
counLry Lo ßy peopIe In
orbit besides the United
States and Russia, is not a
member of the 15-nation
space station partnership.
NASA Ius spenL ubouL
$1.5 billion since 2010
investing in partner com-
panies under its Commer-
cial Crew program. Boe-
ing and SpaceX have won
mosL oI NASA`s deveIop-
ment funds.
The companies retain
ownership of their ve-
hicles and can sell rides
to customers outside of
NASA, IncIudIng prIvuLe
tourists. Reuters
Myanmar Summary
NASA astronaut Randy Bresnik prepares to enter Boeing's CST-1UU spacecraft for a ñt check evaIuation
at the company's Houston Product Support Center. NASA wiII partner with Boeing and SpaceX to buiId
commerciaIIy owned and operated 'space taxis' to Hy astronauts to the InternationaI Space Station, end-
ing US dependence on Russia for rides, ofñciaIs said.
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A woman counts her US doIIar biIIs at a money changer.
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
Myanmar Summary
PetroleomBRLNII Signs Myunmur Oil Ixplorution Ðeul
Aye Myat
B
runeI NuLIonuI Pe-
troleum Company
Sdn BId (PeLroIe-
umBRUNE¡) Ius omcIuIIy
been awarded an onshore
bIock In Myunmur Lo con-
duct crude oil exploration
in the country on a pro-
duction sharing basis.
Under the contract
signed between the My-
anmar Oil and Gas En-
LerprIse (MOGE), PeLro-
IeumBRUNE¡ und IocuI
hrm ¡GE ¡Ld In Nuy PyI
Taw, the oil exploration
will be done at inland oil
bIock EP-1 In KyuukkyI-
Mindon area in Magwe
region, central part of the
country.
TIe BruneIun hrm wus
uwurded LIe bIock on No-
vember 19 last year after
participating in the 2013
Myanmar Onshore Bid-
ding Round. The onshore
bIock Is IocuLed z¸o kIIo-
metre north of Yangon,
covering an area of 1,135
squure kIIomeLre.
Hj Md Yasmin Hj Umar,
Brunei’s minister for en-
ergy, who was at the sign-
ing ceremony, said in car-
rying out its operations in
EP-1, PeLroIeumBRUNE¡
is committed to ensuring
high safety, environmen-
LuI sLundurds und Lo work
alongside the local busi-
ness community.
¨PeLroIeumBRUNE¡ Is
commILLed Lo IuIhI ILs ob-
ligations under the PSC
Lo expIore LIe bIock dIII-
gently and invest in any
commercial discoveries.”
He said following this
signing, PetroleumBRU-
NE¡ wIII be curryIng ouL
all the exploration activi-
LIes In LIe bIock, IncIud-
ing a seismic survey, en-
vironmental studies and
assessments. Exploration
will go on for the next
two years and is expected
Lo sLurL In LIe nexL hve Lo
six months, the minister
added.
In July, MOGE initiated
contracts with British Vir-
gIn ¡sIunds-bused MPR¡
E&P PLe ¡Ld und Myun-
mar Petroleum Explora-
tion and Production Co to
carry out improved petro-
leum recovery projects at
Lwo InIund bIocks In Pyuy
and Myanaung.
In early September,
MOGE signed contracts
wILI CunudIun hrm PucII-
ic Hunt Energy Corp and
local Young Investment
Group Lo underLuke ex-
ploration at other inland
oII bIocks In ¡nduw-Yunun
and Taungoo-Pyinmana
in central Myanmar.
Indonesiun Bunk to Open Myunmur Omce in November
Aung Phyo
I
ndonesia’s state-run
Iender Bunk Neguru
¡ndonesIu (BN¡) Is seL
Lo open ILs hrsL represenL-
uLIve omce In Myunmur In
November, u Lop omcIuI
said.
TIe omce wIII IucIIILuLe
the expansion of Indone-
sian state-owned enter-
prises in Myanmar, Indo-
nesian media reports.
According to the dep-
uty general manager of
BN¡`s InLernuLIonuI dIvI-
sion, Rahmad Hidayat,
LIe bunk Ius secured up-
proval from the Indone-
sia’s Financial Services
AuLIorILy (OJK) und Ius
submitted a proposal to
LIe CenLruI Bunk oI My-
anmar.
BN¡`s bourd oI dIrecLors
Iud meL CBM omcIuIs
earlier and the latter had
in principal approved the
pIun, HIduyuL suId. ¨We
expect to acquire the of-
hcIuI upprovuI soon,¨ Ie
was quoted as saying.
TIe omce, wIIcI wIII be
located in Yangon, will be
joInLIy operuLed by BN¡
and Indonesia’s state-run
consLrucLIon hrm WuskI-
Lu Kuryu (WSKT), wIIcI
has already secured a
$125-million contract to
build a commercial tower
in Myanmar. The con-
struction will begin in
OcLober und wIII Luke Lwo
years to complete.
BesIdes WSKT, LeI-
ecoms services provider
TeIekomunIkusI ¡ndone-
sIu ¡nLernuLIonuI (TeIIn)
– part of state telecom-
munIcuLIons hrm TeI-
ekomunIkusI ¡ndonesIu
– and lubricant producer
PerLumInu ¡ubrIcunLs -
subsidiary of state oil and
gas company Pertamina
– are reportedly joining
the line-up of Indonesian
state enterprises expand-
ing into Myanmar as well.
BN¡ uIso Iopes Lo creuLe
partnerships with Indo-
nesian private enterprises
that have already estab-
lished their presence in
Myanmar, such as poultry
An empIoyee (C) of PT Bank Negara Indonesia taIks to a customer in ]akarta.
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hrm JupIu ComIeed und
pharmaceutical company
KuIbe ¡urmu.
To better facilitate the
LrunsucLIons, BN¡ Ius
begun cooperating with
IocuI Iender Kunbuwzu
Bunk und Is IookIng Lo
work wILI Co-operuLIve
Bunk (CB) ¡Ld.
Myanmar Summary
~·.,.q:..··.· Bank
Negara Indonesia ·~
(BNI) ._ _.,.:.··~·
,·.~-.·....~..q.,.
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~~~ .~··:. ~¡ q~~·
qq . _.· ._e. _ . ~ , .~ · .. .
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
Myanmar Summary
David Mayes
I
wrote about real estate
investing in Myanmar
for you average Joe
IusL week, buL wIuL ubouL
those of you out there who
are a little more adventur-
ous? WILI LIe openIng up
of Myanmar, surely there
must be opportunities
abounding in the tour-
ism sector as well? The
fact is that for those with
u IIgI LoIerunce Ior rIsk,
uncertainty, and good
old fashioned adventure,
there may be still some of
the most amazing oppor-
tunities to get in early on
tomorrow’s big destina-
tions.
As the saying goes, the
early bird gets the worm.
¡I you Iuve Iooked uL
prices in the most popu-
lar beach destination in
Myunmur, NgupuII, you
are probably aware that
you would not exactly
qualify as an “early bird”
if you wanted to develop
something in the area.
Yet, what about the other
LIousunds oI kIIomeLres
of coastline in this coun-
try?
¡L Is LougI Lo know Ior
sure exactly which towns,
beaches, or even regions
will become the favourites
of tourists in the coming
decades, but I have a few
ideas that I would give a
try if I was in a better po-
sILIon Lo Luke on LIe rIsk.
I could see several areas
that hold a lot of promise
but are virtually undevel-
oped yet.
The Mergui Islands are
one area. Of course there
are so many islands, it is
anyone’s guess where if
anywhere will eventually
get an airport and begin
to develop some tour-
ist infrastructure. As it is
now the area is only ac-
cessible by boat, and even
II you ure noL keen Lo In-
vest there it may be one
of the last chances to visit
such an unspoilt paradise
if you were to head there
now.
Another area is the en-
LIre cousLIIne NorLI oI
where Thailand runs into
Myanmar. The tourist trail
is already developed right
up to where visa-running
tourists have been cross-
ing into the country from
Ranong for many years.
As it stands now the rail-
roads don’t go continu-
ously from Yangon this far
souLI. TypIcuIIy ßIgILs or
overnight ferries are need-
ed, but this added adven-
ture may lure in adven-
Lure seekIng buckpucker
types. If you remember it
adventurers such as these
who originally discovered
pIuces IIke PIukeL und
KoI SumuI.
Mon state is another
stretch that holds prom-
The Iurly Bird Gets the Worm
ise. There is so much un-
explored coastline and for
LIe momenL IL Is IIkeIy Lo
stay this way because it
Is sLIII reIuLIveIy dImcuIL
to explore. However, as
DuweI deveIops IL Is IIkeIy
that you may see similar
developments close by
Lo ußord expuL workers
u pIuce Lo bIow oß sLeum
nearby. I have a friend liv-
ing in Ye and his wife has
opened LIe hrsL IoreIgn-
er-oriented guesthouse.
Slowly they have seen
an increase in the tourist
numbers. Keep In mInd
this region of Myanmar
only re-opened to foreign-
ers IusL yeur, LuIk ubouL
getting in early.
¡L Is LougI Lo know wIIcI
areas of the thousands
oI kIIomeLres oI cousL-
line will become the new
PIukeLs, KIuo ¡uks, und
Railays of Myanmar, but
it almost certain that as
the infrastructure grows
in the coming decade cer-
tain areas will experience
phenomenal rates of de-
velopment and the early
birds really will get the
big worm. As Thailand
continues to get more
expensive and geared to
mass tourism from places
IIke RussIu und CIInu,
neighbouring Myanmar,
having retained its natu-
ral charm, will no doubt
be receIvIng LIose kInd
travellers who once upon
u LIme puL pIuces IIke KoI
Samui on the map.
David Mayes MBA
provides wealth man-
agement services to ex-
patriates throughout
Southeast Asia, focusing
on UK Pension Trans-
fers. He can be reached
at david.m@faramond.
com. Faramond UK is
regulated by the FCA and
provides advice on pen-
sions and taxation.
Myunmur Sees Ioreign Investment
Topping $gb in ±o1q-1g
Aung Hla Htun
M
yanmar has re-
vised its forecast
for foreign direct
InvesLmenL (¡D¡) Lo more
than $5 billion for the
hscuI yeur LIuL begun In
AprII, u senIor omcIuI suId
IusL week, surpussIng eur-
lier expectations and led
by new ventures in energy
and telecoms.
TIe hgure exceeds un
earlier estimate of $4 bil-
lion, with investments
In LIe hrsL hve monLIs
oI LIIs hscuI yeur worLI
$3.32 billion, said Aung
NuIng Oo, secreLury oI LIe
government-run Myan-
mar Investment Commis-
sIon (M¡C).
That sum was more than
half of the annual target set
earlier and up 113 percent
over the corresponding pe-
riod a year prior.
“Considering the rap-
Id growLI In LIe Inßow
oI ¡D¡ In LIe hrsL hve
monLIs durIng LIIs hscuI
year, we’ve revised our es-
timates,” he told Reuters.
“It will be over $5 billion.”
The surge in investment
follows a series of politi-
cal and economic reforms
launched three years ago
by President Thein Sein,
a former general who
has overseen Myanmar’s
transition from decades
of military rule and inter-
national isolation.
The suspension of most
sanctions by the Europe-
an Union and the United
States, in place since the
1990s over the poor hu-
man rights record of the
former junta, has allowed
more InvesLmenL Lo ßow
into a country rich in en-
ergy and mining resourc-
es and strategically locat-
ed between India, China
and Southeast Asia.
Aung NuIng Oo suId
31 percent of the invest-
ment received by the end
of August was in the tel-
ecoms sector, with 23.8
percent in oil and gas and
18.4 percent in real estate.
Hotels accounted for 13.3
percent and 8.1 percent
went into manufacturing,
primarily garments.
Total FDI stood at $4.11
bIIIIon durIng LIe hscuI
year to March 2014, up
sharply from $1.42 billion
a year earlier. That com-
pares with $329.6 million
in 2009-2010, a year be-
fore the new government
Look omce und emburked
on reforms.
Despite its business
potential, Myanmar still
trails neighbouring mar-
keLs In Lerms oI IoreIgn
investment this year.
Thailand received $6.8
billion in the period from
January to June, accord-
Ing Lo LIe cenLruI bunk,
while Vietnam recorded
$7.9 billion of investment
Ior LIe hrsL eIgIL monLIs
of 2014. Reuters
Myanmar Summary
The underdeveIoped Mergui IsIands (Myeik ArchipheIago) in Myanmar is an area that hoIds a Iot of prom-
ise in terms of investing in hoteI and tourism in the recentIy opened country.
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Cunudu Muy Give PreIerentiul Trude
Beneñts to Myunmur
Phyo Thu
T
he Union of My-
anmar Federation
of Chambers of
Commerce and Industry
(UM¡CC¡) suId Myunmur
Is IIkeIy Lo receIve Lrude
preferences from Canada
after its representatives
met with Canada’s inter-
national trade minister
Ed ¡usL In Nuy PyI Tuw
late August.
The meeting concen-
trated on the inclusion
of Myanmar in Canada’s
generalised scheme of
preIerences (GSP) und
LurIß concessIons Ior IeusL
developed countries.
“In addition to these con-
cessions, we would hope to
promote investment from
Canada. Myanmar is one
of the countries targeted in
|Cunudu`s| GIobuI MurkeL
Action Plan,” Ed Fast said.
Trade concessions,
when granted, can boost
bilateral business rela-
tions and boost Canada’s
investment in Myanmar
by strengthening mutual
trust, local traders said.
“[The interest of] the
country is prioritised.
WIen LIe negoLIuLIons
bear fruit, it will be ben-
ehcIuI Lo LIe deveIopmenL
of bilateral trade and
business relations,” said
U WuI PIyo, vIce presI-
dent of UMFCCI.
New bIIuLeruI Lrude
agreements, such as the
one with Canada, is ex-
pected to encourage ex-
ports – urgently needed
to decrease Myanmar’s
ever-wIdenIng Lrude deh-
cit.
Myanmar Summary
Canada`s InternationaI Trade Minister Ed Fast at an event.
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_.· ~ .¸¸q~ .,_._ .~:
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.··~_.__._.·q:~,.e
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
Myanmar Summary
Myunmur in The Midst oI Toorism Boom
Michael Nesbitt
G
rowing interna-
tional interest in
Myanmar, follow-
ing the easing of sanctions
by LIe WesL, Ius Ied Lo u
period of unprecedented
growth in the tourism
industry and has seen
visitor numbers soar to
2 million last year from
300,000 in 2010, accord-
Ing Lo governmenL hgures.
ArrIvuIs In LIe hrsL sIx
months rose 43 percent
year-on-year to 1.6 mil-
IIon, uccordIng Lo om cIuI
numbers from the Min-
istry of Hotel and Tour-
ism, which has a full-
year target for inbound
visitors of 3 million. The
WorId TruveI und Tour-
Ism CouncII (WTTC),
which analyses the sec-
tor’s performance across
184 countries, expects
Myanmar to feature on its
list of the top ten fastest-
expanding tourism indus-
tries globally.
¡usL yeur, LIe dIrecL
contribution from travel
and tourism to GDP stood
uL K8qq.6 bIIIIon, or 1.6
percent of GDP, accord-
Ing Lo LIe WTTC. TIe Lo-
tal contribution to GDP,
wIIcI Lukes InLo uccounL
LIe wIder eßecLs Irom
investment, the supply
cIuIn und Income eßecL,
reucIed K1.q; LrIIIIon
($z.oz bIIIIon) IusL yeur,
or 3.7 percent of GDP,
and is forecast to rise by
9.2 percent in 2014. How-
ever, if Myanmar achieves
50 percent growth this
year, as targeted, the rev-
enue hgure Is IIkeIy Lo be u
lot higher.
At the same time, fears
that accelerated growth
could negatively impact
the quality of service and
prized attractions, if left
uncIecked, ure spurkIng
calls from some industry
players for a more cau-
tious pace of develop-
ment.
1ncreosing orriools
ond inoestment
Alongside the surge in
visitor numbers, Myan-
mar has witnessed a sig-
nIhcunL rIse In InvesLmenL
during the past three
years, with a raft of new
hotels and infrastructure
developments providing
u boosL Lo exIsLIng sLock.
The number of hotels
registered in Myanmar
reached 1,019 at the end
of July, up from 960 re-
corded in March, accord-
ing to the ministry.
“After nearly 50 years
of stagnation, the hotel
industry has experienced
exponential growth since
zo11,¨ SukIdeep SIngI,
general manager of Inya
¡uke HoLeI, LoId OBG.
“The huge increase in
tourist arrivals has led to
high occupancy rates.”
WIIIe new deveIop-
ments pushed up hotel
sLock by more LIun 1o
percenL durIng LIe hrsL
IuII oI zo1q und Look
room numbers to in ex-
cess of 35,000, the indus-
try will need to maintain
momenLum II IL Is Lo keep
pace with the rise in tour-
ist arrivals.
Infrastructural im-
provements will also have
u key purL Lo pIuy In IucIII-
LuLIng growLI. EßorLs Lo
hII LIe gups ure uIreudy
under way, with a new
uIrporL eurmurked Ior
Hanthawaddy, outside of
Yangon, which is sched-
uled to open in 2016. The
airport will be capable of
handling 10 million inter-
national passengers an-
nually, doubling current
capacity levels across the
country. Upgrades are
also planned for existing
facilities to support the
initiative.
Fi ndi ng a balance
WIIIe LIe rIse In vIsI-
tor numbers signals good
news for both the tourism
industry and Myanmar’s
broader economy, con-
cerns are growing that
the rapid pace of develop-
ment could put a strain on
resources.
Industry players have
highlighted the impor-
tance of ensuring future
growth is sustainable.
¨NeguLIve pubIIcILy ubouL
disappointing travel ex-
periences travels faster
and reaches more people
than the positive stories,”
¡runk JunmuuL, munug-
ing director at Yangon-
bused ¡IgILIouse HospI-
tality Consultancy, told
OBG.
“Under current circum-
stances, trying to attract
the highest number of
tourists might be counter-
productive for the image
of Myanmar as a travel
destination.”
The country is also
missing a sound regula-
tory environment, which
may well prove crucial
in providing protection
for historical and natu-
ral places of interest.
“Myanmar has only just
opened up,” U Aung Soe
Tha, chairman of Myan-
mar Combiz Travels, said,
wIen speukIng Lo OBG.
¨We need Lo Improve
rules and regulations
within the tourism sector
to protect local business.”
Exploring neu mor-
kets
WIIIe Myunmur wIII
need to address these is-
sues, the potential for fur-
ther expansion remains
Iuge. WesLern Europe,
In purLIcuIur, oßers sIg-
nIhcunL scope Ior growLI.
Tourists from the conti-
nent accounted for 17.6
percent of all arrivals in
zo1¸, sIgnIhcunLIy Iewer
than the number of visi-
tors from Asian countries,
who made up 70 percent
of all international arriv-
als, according to Myan-
mar tourism statistics.
Stronger promotional
activities in Europe, and
closer to home in Oce-
ania, could help broaden
Myanmar’s appeal, while
niche attractions, includ-
ing casinos, are being con-
sidered. The Ministry of
Hotels and Tourism con-
hrmed uL LIe begInnIng
of September that legisla-
tion enabling casinos to
be established in targeted
tourism zones, catering
solely for foreigners, was
being drafted. At present,
gambling operations in
Myanmar are illegal.
Despite a strong perfor-
mance from the sector in
2013, Myanmar’s visitor
numbers remained sig-
nIhcunLIy beIow LIose oI
its peers, including Viet-
num (;.¸ mIIIIon), ¡ndo-
nesIu (8.8 mIIIIon), Mu-
IuysIu (z¸.; mIIIIon) und
regional leader Thailand
(z6.¸ mIIIIon), uccordIng
Lo hgures Irom LIe WorId
Tourism Association.
However, the fast pace of
growth, combined with
Myanmar’s huge poten-
tial, suggests the target of
welcoming 5 million ar-
rivals in 2015 may well be
achievable.
Michael Nesbitt is edi-
torial manager for My-
anmar at Oxford Busi-
ness Group (OBG), and
is in charge of producing
sector specijc resecrch in
Myanmar.
Tourist are seen in front of a hoteI in NgapaIi Beach in Rakhine state.
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Alongside the surge in visitor
numbers, Myanmar has witnessed
a significant rise in investment
during the past three years, with
a raft of new hotels and infrastructure
developments providing a boost to
existing stock.”
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
Myanmar Summary
Myanmar Summary
Myunmur Investments to Ruise Iqoity
Ior Iorther Investments
Kyaw Min
M
yanmar Invest-
ments Interna-
LIonuI ¡Ld suId
it is in negotiations and
evaluating investments
in telecommunications
infrastructure, IT servic-
es, equipment rental and
education.
The company also said
IL wIII be IookIng Lo ruIse
additional equity to fund
further investments.
¡usL hscuI yeur, A¡M-
traded investment com-
puny opened un omce In
Yangon. AIM, formerly
the Alternative Invest-
menL MurkeL, Is u sub-
murkeL oI LIe ¡ondon
SLock ExcIunge, uIIow-
ing smaller companies to
ßouL sIures wILI u more
ßexIbIe reguIuLory sysLem
than is applicable to the
muIn murkeL.
TIe hrm dIdn`L concIude
an investment until last
month, when it acquired
a 55 percent shareholding
In mIcrohnunce Ioun pro-
vider Myanmar Finance
¡nLernuLIonuI ¡Ld.
“In a very short time
we have established our
presence in Myanmar, not
just physically but also in
the wider business and
regulatory communities,”
Managing Director Aung
Htun said in a statement.
¨WIIIsL we mIgIL Iuve
hoped to achieve more
In our hrsL yeur, we ure
nonetheless pleased with
LIe resuIL gIven LIe dIm-
cult operating conditions
that prevail in Myanmar
Loduy. We Iuve kepL u
very tight rein on over-
heads and yet have built
up un eßecLIve Leum oI In-
vestment professionals,”
he said.
“As a result, we have
jusL concIuded our hrsL
investment and have built
up a diverse pipeline of
further investment op-
porLunILIes. We Iope Lo
build on this momentum
in the months to come.”
NY Iorom Aims to Promote
Myunmur Investment
Htun Htun Minn
T
Ie hrsL Myunmur ¡n-
vestment Outreach
forum, which in-
volves senior government
omcIuIs und u IosL oI IocuI
and foreign businesspeo-
ple, is eyeing to promote
international investment
in the impoverished South-
east Asian country.
The forum, titled “My-
unmur: AsIu`s ¡usL Iron-
tier”, is organised under
the patronage of Myan-
mar Investment Commis-
sIon (M¡C) und LIe PresI-
denL`s Omce und joIned by
Myanmar companies and
Peninsula Press, and will
Luke pIuce In New York on
September 24,
Headed by Minister for
LIe PresIdenL`s Omce U
Soe Thane, the Myanmar
delegation attending the
forum comprises Minister
Ior Energy U Zuy Yu Aung,
Minister for Tourism U
Htay Aung and Myanmar
Ambassador to the United
SLuLes U Kyuw Myo HLuL,
as well as other senior
bunkIng und udmInIsLru-
LIve omcIuIs.
U Soe Thane said Myan-
mar welcomes investors
from low-cost and labour
intensive industries such
as garments, textiles and
footwear, adding that
part of the government’s
strategy to reduce poverty
and promote rural devel-
opmenL InvoIves seekIng
investment in sectors that
can create good-quality
entry-level jobs.
The organisers said one
oI LIe key uIms oI LIe Io-
rum is to ensure foreign
investors that Myanmar’s
political and economic
reform process is still on
Lruck despILe LIe InevI-
table challenges and set-
bucks LIuL oILen domInuLe
newspaper headlines.
Various major multi-na-
tional companies based in
Myanmar will have their
executives present and
speukIng uL LIe Iorum.
At the press conference,
Ramona Tarta, regional
director Peninsula Press,
the organiser of the event,
said the forum is a “real
milestone for the private
sector,” while U Htay
Aung, who is also vice
chairman of MIC, called
for promoting Myanmar
as a destination for tour-
ists and investment.
Director General of the
Directorate of Invest-
ment and Company Ad-
mInIsLruLIon U Aung Nu-
ing Oo said at the press
conference that foreign
investment in Myanmar
has been on rise year-on-
year, receiving $4.107 bil-
lion annually in 2013-14,
up from $1.419 billion in
2012-13.
He said the government
has drawn a 20-year long-
term investment pro-
motion plan 2011-2030,
wIIcI cuIIs Ior dIversIhcu-
tion in economic develop-
ment and worldwide in-
vestment.
Myunmur to Issoe New
Kg,ooo Bunknotes
Htun Htun Minn
T
Ie CenLruI Bunk oI
Myanmar will issue
K¸,ooo bunknoLes
in a new design aimed
at increasing its security
and prevention from for-
gery, state-run radio and
TV announced.
TIe new bunknoLe wIII
be put into circulation
starting October 1, it said,
adding that the existing
K¸,ooo currency noLes
will remain legal.
TIe CenLruI Bunk InLro-
duced LIe K¸,ooo bunk-
note on October 1, 2009.
TIere ure 11 kInds oI
bunk noLes currenLIy In
circulation in Myanmar
wIIcI ure K1, K¸, K1o,
Kzo, K¸o, K1oo, Kzoo,
K¸oo, K1,ooo, K¸,ooo
und K1o,ooo.
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~_.:.·~ . . ·, .. · ~ . .¸¸.
.q. ~q:q_~..¸:..|~·._.
Myanmar Summary
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.~~.:..¸:.~._.·_~~_.¸
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~:.~ q ¸~~~ ~¸. ~, .¸:.. :
._..~.~~q:.~·.,._
_e. ._ .
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Best Western Creen HiII HoteI's entrance in Yangon.
B
e
s
t

W
e
s
t
e
r
n
Best Western Signs Ðeul to Open Iirst Munduluy Hotel
May Soe San
A
merican hotel
cIuIn BesL WesL-
ern International
Ius emburked on LIe nexL
stage of its expansion in
Myanmar with the sign-
Ing oI ILs hrsL IoLeI In LIe
country’s second-largest
city Mandalay.
The Mandalay opening
will continue the hotel
chain’s recent expansion
in Myanmar, which start-
ed in 2013 with the open-
Ing oI LIe BesL WesLern
Green Hill Hotel in Yan-
gon. This opening made
BesL WesLern LIe hrsL US-
based hotel group to re-
enter Myanmar since the
country opened up to the
international community.
“Since launching last
yeur, BesL WesLern Green
Hill Hotel has experi-
enced strong demand
from both international
business and leisure trav-
eIIers. We see Iuge poLen-
tial in Myanmar and plan
Lo deveIop u neLwork oI
hotels across the country.
TIe sIgnIng oI our hrsL
IoLeI In MunduIuy Is u key
step towards achieving
this,” said Glenn de Sou-
zu, BesL WesLern ¡nLernu-
tional’s Vice President of
International Operations
for Asia & Middle East.
“Myanmar has made re-
murkubIe progress In re-
cenL yeurs und BesL WesL-
ern is delighted to be able
to continue our develop-
ment in the country,” de
Souza added.
Scheduled to open in
the third quarter of 2015,
the new midscale hotel
will feature 108 rooms,
equipped with ameni-
LIes sucI us ¡CD TVs und
compIImenLury WI-¡I,
BesL WesLern suId.
In addition to the mid-
scale properties in Yan-
gon and Mandalay, Best
WesLern prevIousIy un-
nounced plans to open a
Iuxury BesL WesLern Pre-
mier hotel in the capital
Nuy PyI Tuw.
De Souza said he sees
potential for all three of
BesL WesLern`s producLs
- mIdscuIe BesL WesL-
ern, upper midscale Best
WesLern PIus und upscuIe
BesL WesLern PremIer -
in Myanmar.
“At present Myanmar
is experiencing a strong
level of new hotel devel-
opment, but much of this
is concentrated in the
higher ends of the mar-
keL. WILI BesL WesLern`s
experience in the mid-
scale, upper midscale,
upscale segments, and a
choice of products that
cun be LuIIored Lo dIßer-
enL murkeLs, we Iuve LIe
opportunity to create new
demand and drive busi-
ness across the country,”
he said.
TIe new BesL WesLern
hotel in Mandalay will
join the company’s exist-
ing portfolio of almost
200 hotels and resorts
either operating or under
development across Asia
and the Middle East, in-
cluding 86 in Southeast
Asia.
The company said it
expects to increase its re-
gional collection to 300
properties in the next few
yeurs. BesL WesLern hrsL
launched in Asia & the
Middle East in 2001 and
now covers 27 countries
in the region.
Myanmar Summary
Wijuyu Kuryu Bugs $1±gm Constroction Contruct in Myunmur
Aye Myat
I
ndonesia’s state-run
consLrucLIon hrm PT
WIjuyu Kuryu Tbk
(WIku) suId IL Ius secured
a project worth $125 mil-
lion to develop a commer-
cial tower in Myanmar.
WIku, ¡ndonesIu`s Iurg-
est construction compa-
ny, and its partner, Sin-
gapore-based high-end
deveIoper NobIe TwIn
Drugons PLe ¡Ld, sIgned
a deal to build the mixed-
use Pyay Tower and Resi-
dences in Yangon.
The company will be the
sole contractor in the con-
struction of the tower.
¨WIku Is proud Lo Luke
part in [the construction
of] Pyay Tower, which
wIII be u Iundmurk In
Yungon,¨ WIku presIdenL
director Bintang Prabowo
said in a statement.
Pyay Tower will have
z¸ ßoors und LIree buse-
menLs. TIe hrsL hve ßoors
will be dedicated to com-
mercial use while the up-
per ßoors wIII Iouse omc-
es. WIku wIII commence
construction in October
und Is scIeduIed Lo hnIsI
the project in two years.
WIku corporuLe secre-
tary Suradi said the com-
pany’s entry into Myan-
mar was in line with its
mission to become a big
player in the region.
TIe hrm Is uIso reporL-
edly planning to construct
oI represenLuLIve omces oI
sLuLe-run Iender Bunk Ne-
guru ¡ndonesIu (BN¡) und
oil company Pertamina in
Myanmar.
Myanmar Summary
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
24
Myanmar Summary
PROPERTY & REAL ESTATE
YCÐC to Boild Yungon's Second Commerciul Centre
Htun Htun Minn
T
he Urban Plan-
ning Department
of the Yangon City
Development Committee
(YCDC) suId IL wIII begIn
the process of establish-
ing Yangon’s second com-
mercial centre later this
year.
The commercial center
is planned to accommo-
duLe omce spuce Ior IocuI
and foreign businesses,
shopping malls, retail
centres and be a one-stop
shopping outlet similar to
the current one in down-
town Yangon.
The project is slated to
be built on a 36-acre area
where the Myanmar Con-
venLIon CenLer (MCC) Is
located on Mindama road
in Mayangone township.
¨PeopIe Iuve Lo ßock Lo
downtown to access com-
mercIuI buIIdIngs, omces
and retail business and
services, fuelling con-
gestion and overcrowd-
Ing downLown. We Iope
to alleviate the pressure
by establishing another
commercial zone,” U Toe
Aung, director of the Ur-
ban Planning Department
told Myanmar Business
Today.
The new commercial
center will bring about
further development in
the surrounding town-
ships of Hlaing Tharyar,
Shwe Pyi Thar and South
und NorLI Dugon, U Toe
Aung added.
The project is anticipat-
ed to expand job oppor-
tunities, ease the public’s
commute by providing an
alternative commercial
destination and reduce
the time and cost of oper-
ating businesses.
¨A projecL IIke LIIs
should have been imple-
mented earlier. But we
welcome it anyway. It just
needs Lo be eßecLIveIy
implemented,” Daw Yi Yi
Myint, an economic ex-
pert, told Myanmar Busi-
ness Today.
The project, which does
not include residential
zones and manufacturing
industries, is projected to
Luke hve yeurs Lo be IuIIy
implemented.
IiIteen Illegul Boildings to be Ðemolished
Htun Htun Minn
Y
angon City Devel-
opment Committee
(YCDC) unnounced
that 15 illegally construct-
ed buildings will be de-
stroyed in September.
This announcement
cume onIy u week uI-
ter Mayor U Hla Myint
warned that illegal build-
ings would be dealt with
by possible demolish-
ment.
YCDC has sued approxi-
mately 2,000 landowners
for constructing buildings
without proper permits.
TIIs Is LIe hrsL LIme LIuL
YCDC wIII Luke sucI uc-
tion, demonstrating its
commitment to increas-
ing the building standards
of the city.
“Despite facing such le-
gal action and the suspen-
sion of projects, the illegal
construction of buildings
has not declined so we
are now considering the
wreckIng buII opLIon,¨
said U Hla Myint.
The regional govern-
menL Ius Luken ucLIon
against nearly 200 con-
tractors and engineers,
which has included the
suspending their licences.
So far, 91 contractors and
94 engineers have faced
the suspension of their
licences, according to
YCDC.
An additional 152 in-
dividuals have been
warned, 15 people have
been bIuckIIsLed - u pub-
lic report created to warn
potential customers – and
one person has been per-
manently banned from
the business, YCDC said.
In an attempt to deter
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illegal construction, the
government is trying to
reduce the red tape in
granting construction
permILs und heId Inspec-
tions, the Mayor said.
Currently, there are
more than 2,000 illegal
buildings in Yangon with
most of them located in
Thingangyun, Hlaing,
SouLI OkkuIuppu, ¡nseIn,
Mayangone, Daw Pone,
SuncIuung und Kyee-
myindaing townships, ac-
cording to YCDC.
Myanmar Summary
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
New Toyotu Showrooms,
Service Centres to Open Next Yeur
Tin Mg Oo
N
ew Toyota car
showrooms and
service centers
will be opened in Yangon
und Nuy PyI Tuw In zo1¸,
U Myo Myint Thein, gen-
eral manager of TTAS Co
¡Ld - ToyoLu`s uuLIorIsed
dealer in Myanmar – told
Myanmar Business To-
day.
“Toyota has only one
showroom [in Myan-
mar], one service cen-
Lre on Kubu Aye Pugodu
road in Yangon and an-
other one in the western
part of Yangon focusing
on body frames. Toyota
will distribute brand new
cars, which are suitable
for Myanmar,” U Myo
Myint Thein said, adding
that the Myanmar mar-
keL remuIns IurgeIy over-
whelmed by used cars and
IL wouId Luke un exLended
period of time to increase
demand for new cars
among the majority of the
murkeL.
New ToyoLu uuLomo-
biles are equipped with
automatic airbags and
unLI-Iock bruke sysLem
(ABS), wIIcI IucIIILuLes
suIe brukIng.
Mercedes-Benz Luonches
New C-Cluss in Myunmur
Phyo Thu
G
erman luxury car-
muker Mercedes-
Benz has launched
its new C-Class model
cars in Myanmar in a bid
to gain a stronger foot-
hold in one of its newest
murkeLs.
The new C-Class has
come into four model
lines – the Standard line,
LIe ExcIusIve ¡Ine, LIe
AvunLgurde ¡Ine und LIe
AMG ¡Ine, wIIcI Is u
sportier version of all the
four.
Cycle & Carriage Auto-
mobIIe Myunmur Co ¡Ld,
the authorized dealer for
the car brand, said it is
¨ConhdenL LIuL Myunmur
people will be excited”
with the C-Class model.
The car comes with a
Touch Pad system which
can control the whole car,
a dashboard at the front
wIndow und un ¡ED ¡n-
LeIIIgence ¡IgIL SysLem.
The new C-Class is open
for test drives until the
end of September at Mer-
cedes Benz showroom on
Pyay road in Yangon.
Additionaly, the com-
puny Is uIso oßerIng gIIL
vouchers worth $2,000 to
spend at Mercedes-Benz
Boutique Corner inside
the car showroom this
month.
There is a special service
puckuge Ior every pur-
chase: two-year warranty
for unlimited mileage,
complimentary three-
year free servicing for
engIne oII, oII hILer, bruke
ßuId, uIr hILer und dusL
hILer, und compIImenLury
paint protection plan.
If the new Toyota cars
imported into Myanmar
breuk down In LIe hrsL
three years, or within the
hrsL 1oo,ooo kIIomeLers,
the repairs will be han-
dled by Toyota’s service
center at no cost, he said.
All new cars are dis-
played at the showroom
have never been driven
as they have been trans-
ported from the port to
the showroom via car-
rIer Lrucks und Iuve uIso
gone through a series of
mechanical and bodily in-
spections, he added.
A new Toyota ranges in
prIce Irom $zo,ooo (Kzo
mIIIIon) on LIe Iow end
Ior u HIIux sIngIecub pIck-
up Lruck up Lo $1qo,ooo
(K 1qo mIIIIon) Ior u ¡und
Cruiser station wagon.
Toyota, which is the
number one uuLomuker
and distributor in the
world, in 2013 shipped 9.7
million vehicles around
the world.
In the last few years,
many prominent inter-
nuLIonuI uuLomukers, In-
cIudIng ToyoLu, NIssun,
MILsubIsII, ¡und Rover,
Jaguar, Ford and Hyun-
dai have launched or in-
creased their presence in
Myanmar.
Myanmar Summary
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Myanmar Summary
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A Toyota Iand Cruiser Prado on show at Toyota's brand new car saIes Iaunching ceremony.
A modeI poses in front of a Mercedes-Benz C-CIass car in Yangon.
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
26
Myanmar Summary
IT & TELECOM
iPhone Comes Oot oI u 'Bygone Iru',
Reviewers Huil Bigger Hundset
Arnab Sen
B
igger is better and
AppIe ¡nc Ius h-
nally realised that
and given iPhone users a
product that may be low
on novelty but high on
improvements, reviewers
wrote.
Most reviewers say that
the iPhone 6 is the best
smartphone available or
“ever made”, while the
5.5-inch iPhone 6 Plus
has been described as a
“phablet” that will give
competition to Samsung
EIecLronIcs Co ¡Ld`s GuI-
axy S line of ‘big’ Android
phones.
¨¡ LIInk IL`s u LerrIhc
phone. In my view, it’s the
best smartphone on the
murkeL, wIen you com-
bine its hardware, all-new
operating system, and the
Apple ecosystem whose
doors IL opens,¨ WuIL
Mossberg wrote of the
4.7-inch iPhone 6 in the
tech blog Re/code.
Geoßrey ¡owIer, wIo
reviewed the phones for
LIe WuII SLreeL JournuI,
said Apple has “success-
fully addressed its size de-
hcIency.¨
Mossberg said the in-
crease in the screen size is
a “catch-up” feature. But
it is seen as a welcome
change by Fowler, who
suId LIe IPIone ¨IeIL sLuck
in a bygone era called
2012” before the launch
of the bigger phones.
New York TImes revIew-
er MoIIy Wood upprecI-
ated the new “thinner,
ßuLLer und more round-
ed shapes” of both the
phones. But she pointed
ouL LIuL LIe sIeek Iook
comes at the cost of the
phones feeling “slippery”.
The improvements
made to the operating
system – the iOS 8 soft-
ware, and that to the cam-
era were given a thumbs
up by reviewers across
the board. However, most
believed that Apple could
have done more to en-
hance the battery life of
the phones.
JosIuu TopoIskI, wIo
reviewed the phones for
Bloomberg, said they
were faster than their pre-
decessors.
“Apple will tell you
that these are the fastest
mobile devices it’s ever
made, and it wouldn’t
be lying. These phones
screum,¨ TopoIskI wroLe.
Reuters
Sony Slushes Goidunce on Stroggling
Smurtphone Bosiness
Sophie Knight
S
ony Corp warned
of a much-deeper-
than-expected loss
and said it would not pay
a dividend this business
year after it was hit by a
18o bIIIIon yen ($1.; bII-
IIon) ImpuIrmenL cIurge
for its struggling smart-
phone division.
The Japanese consumer
electronics company is
now predicting a 230 bil-
IIon yen ($z.1¸ bIIIIon)
net loss for the year end-
ing March 31, versus its
previous forecast for a
50 billion yen loss. It ex-
pects an operating loss
of 40 billion yen instead
oI u 1qo bIIIIon yen prohL
ßugged In JuIy.
TIe news murks LIe
sixth downward revision
under Chief Executive
Kuzuo HIruI, wIo Look IIs
post in 2012 promising to
puII LIe hrm`s LroubIed
electronics division into
LIe bIuck by IocusIng on
its mobile, gaming and
imaging units.
The revision is also an
embarrassment for new
CIIeI ¡InuncIuI Om cer
KenIcIIro YosIIdu, wIo
assumed his post on April
1 promising the company
would be more realistic
ubouL ILs ouLIook.
Yoshida warned in July
Sony could write down
losses on its mobile unit
for this business year. At
the time Sony cut its prof-
IL ouLIook Ior ILs smurL-
phone business to zero,
buL sLuck Lo ILs IuII-yeur
forecast.
In July Sony also cut
its full-year sales forecast
for its smartphones to 43
million from 50 million,
wIIcI wouId murk u 1o
percent increase on the
year.
Sales of Sony’s high-end
Xperia mobile devices
Iuve sußered due Lo u
Iuck oI reIuLIonsIIps wILI
carriers in the crucial US
murkeL wIere ILs smurL-
phones are so far only
uvuIIubIe on No.q currIer
T-Mobile US, as well as in
CIInu, wIere IocuI muk-
ers are dominant.
Reuters
Myanmar Summary
AppIe CEU Tim Cook introduces the new iPhone ô and iPhone ô PIus during an AppIe event at the FIint
Center in Cupertino.
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
27
Mobile Puyments Iorecust:
Huzy With u Chunce oI Apple
Mark Milian
Aung Phyo
A
nalysts thought
they had a pretty
good idea about
what the mobile pay-
ments industry would
Iook IIke over LIe nexL Iew
years. And then Apple
came along.
TIm Cook sLepped on
stage yesterday in Cuper-
tino, California, and with
the wave of an oversized
iPhone, the Apple CEO
established a mobile-pay-
ments mechanism that
average people may actu-
ally use. Apple fans are
buzzIng. ReLuIIers, bunks
and credit card compa-
nIes ure LukIng IL very se-
riously.
The timing of Apple Pay
is impeccable. The U.S.
is undergoing a shift to a
dIßerenL credIL curd LecI-
nology that’s common in
the rest of the developed
world. Americans will be
issued new “chip cards”
that are designed to re-
duce fraud. Stores will
be usked Lo upgrude LIeIr
payment terminals by Oc-
tober 2015 or face higher
transaction fees. The
cIIps ure dIßerenL Irom
the tap-to-pay compo-
nents found in the iPhone
and other smartphones,
but if retailers are buy-
ing new point-of-sale
equipment anyway, they
might as well get a setup
that supports mobile pay-
menLs. Or so LIe LIInkIng
Q
atar-based tel-
ecoms hrm Oore-
doo IusL week
unnounced LIe om cIuI
launch of Ooredoo Busi-
ness, a service geared at
bringing communications
solutions to Myanmar’s
business community.
TIe hrm suId Ooredoo
Business has invested
heavily in the recruitment
and training of a team of
mobile telecommunica-
tions account managers
who are able to “accurate-
ly assess the communica-
tions requirements” of
customers ranging from
large entities to medium
enterprises.
A wide range of voice,
goes.
The switch had already
been factored into analyst
projections for mobile
payments growth. But
unuIysLs ure Iess conhdenL
Lo suy wIuL kInd oI ImpucL
Apple will have on it. This
Is wIuL LIe U.S. murkeL
Iooked IIke, duLIng buck
to 2012 and forecasting
out to 2018, according to
reseurcI hrm EMurkeLer.
Bloomberg
Ooredoo Bosiness Luonches in Myunmur
SMS and data plans, sup-
ported by a line-up of
smartphone devices can
be tailored to best suit the
needs of Ooredoo Busi-
ness cusLomers, LIe hrm
said.
¨We`ve Iocused our uL-
tention on marrying glob-
al best practice with the
individual requirements
of Myanmar businesses
operating across a range
oI secLors und oI dIßerenL
sIzes,¨ suId PeLer Kyuw-
mInsoe Yup, cIIeI om cer
for Business.
¨We`ve deveIoped our
products and services and
trained our specialised
team to be able to deliver
tailored solutions that de-
liver incremental value to
all of our customers.”
Ooredoo Myanmar’s re-
cenLIy-depIoyed neLwork,
which covered 12.3 mil-
lion people by Septem-
ber 15, will underpin the
service by delivering HD
voice and internet ser-
vices.
¨We undersLund busI-
ness and the importance
of both managing and
having good visibility
of costs,” said Yap, “by
workIng smurLIy, Ieverug-
Ing our neLwork em cIency
and forming strong part-
nerships, we will deliver
vuIue LIuL LIe murkeL
here in Myanmar has not
yet seen.”
Ross Cormuck, CEO oI
Ooredoo Myanmar, cited
the launch of Ooredoo
BusIness us unoLIer key
milestone in Ooredoo’s
roll-out.
“The Union Govern-
ment challenged us with
a broad, ambitious remit.
... ¡everugIng LIe sLrengLI
oI our neLwork und unrI-
valled service capability
to support the corporate
sector is just one part of
that.”
TIe hrm suId Ooredoo
Business customers will
have 24/7 access to a
specially trained team of
“customer champions”
within the companies
contact centre.
“Business never stops,”
Yup suId. ¨We ure uvuII-
able night and day to
support our customers in
growing their business.”
Myanmar Summary
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_., .:-.,:~ . ...'.¸¸ ..~
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.,._ · . ~, .. · · ~~:
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MPT Lndergoes Rebrunding in
The Iuce oI Competition
Htun Htun Min
A
fter partnering
with Japanese
currIer KDD¡ und
trading house Sumitomo,
Myanmar Post and Tel-
ecommunIcuLIons (MPT)
has unveiled a new logo
in a corporate structur-
al overhaul to compete
against its new interna-
tional rivals in the tele-
communication sector.
State-run MPT signed
un ugreemenL wILI KDD¡
and Sumitomo on July 16
to form a partnership that
will see the expansion of
LIe neLwork coveruge und
application of advanced
technology to provide
high quality communica-
tion services.
The changing of logo
was accompanied by a
promotion that ran on
September 13 and 14
where 40 percent to 60
percent extra credits were
provIded Ior K¸,ooo-
K¸o,ooo Lop-up curds.
However, the relatively
IIgI cuIIIng ruLe oI K¸o
remains unchanged and U
KIIn Muung HLun, mun-
aging director of MPT,
said they are considering
introducing a cheaper
rate and will announce
plans at a later date.
WILI LIe end oI LIeIr
telecom monopoly, and
the government no longer
involved in the decision-
mukIng process, MPT
has transformed into an
entity similar to a private
enterprise, said U Thaung
Tin, deputy minister for
communication and in-
formation technology.
Four telecommunica-
tion companies are al-
lowed to operate in Myan-
mar: MPT, Yadanarpon
TeIeporL, Norwuy-bused
Telenor and Qatar-based
Ooredoo. Ooredoo has
launched its service in
August with a calling rate
half that of MPT.Telenor,
which is due to roll out
its services soon, has an-
nounced it will set a rate
cheaper than the existing
ones.
KDD¡-SumILomo, wIIcI
sLurLed workIng LogeLIer
with MPT on September
1, is planning to invest $2
billion with the intent of
upgrading the existing in-
frastructure and expand-
ing services. MPT and its
Japanese partners have
arranged a management
structure where a Myan-
mar and a Japanese per-
son hII eucI oI LIe sume
senior positions.
MPT said it plans to sell
over 5 million SIM cards
by the end of 2014. In Sep-
tember, MPT has started
seIIIng S¡Ms Ior K1,¸oo
at retail mobile stores
but the supply is limited,
IeudIng Lo u bIuck murkeL
where prices of the SIMs
reucI up Lo K1¸,ooo und
K zo,ooo. MPT Ius uIso
planned to produce low-
value top-up cards soon.
Myanmar Summary
Myanmar Summary
M
P
T
/
F
a
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e
b
o
o
k
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(MPT)._ ·¸., . · · . KDDI,
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KDDI Sumitomo ~.·
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Myanmar Business Today .
._.:._.
MPT . · KDDI-Sumitomo
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September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
28
INTIRNATIONAL ANÐ ÐOMISTIC ILIGHT SCHIÐLLI
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 2 3 4 5 6 7 RGN SIN 19:05 23:40 TigerAir TR2826 1 2 3 4 5 6 7 SIN RGN 17:05 18:25 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g 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
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
Mann Yadanarpon Airlines
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
Myanmar Summary
Google Luonches $1og
Android One;
Iyes Low-Price
Smurtphone Boom
Nivedita Bhattachar-
jee and Tomm Wilkes
G
oogle Inc launched
in India on Mon-
day a $105 smart-
pIone, LIe hrsL devIce
from its “Android One”
initiative which is aimed
at boosting sales in
key emergIng murkeLs
through cheaper prices
and better quality soft-
ware.
The Mountain View-
Based company tied up
wILI ¡ndIun IundseL muk-
ers MIcromux, Kurbonn
and Spice Mobiles to
launch the 6,399 rupees
phone, which is powered
by Google’s operating
system and targets the
booming low-cost seg-
ment of the world’s fast-
est growing smartphone
murkeL.
After launching in In-
dia, Google said it plans
to expand Android One
to Indonesia, Philippines
and other South Asian
countries by the end of
2014 and in more coun-
tries in 2015.
TIe compuny Is workIng
with partners including
Acer Inc, HTC Corp and
Panasonic Corp to build
more devices under An-
droid One, Sundar Pichai,
who heads Google’s An-
droid and Chrome units,
told reporters at the In-
dIu IuuncI evenL In New
Delhi.
¨WIen (IundseL com-
punIes) Iook Lo muke u
phone, they will get a
menu. They can put to-
gether a device in a much
quIcker IusIIon, knowIng
we’ve already tested the
software,” he added.
Reuters
Ooredoo Luonches Heulth App 'Muy Muy'
App to provide pre- and ante-natal care and advice to women across Myanmar
Aye Myat
O
oredoo Myanmar
IusL week omcIuIIy
unveiled May May,
a maternal health appli-
cation developed jointly
wILI IocuI sLurL-up Koe
Koe TecI und PS¡, u gIob-
al health organisation.
The service will put ma-
ternal, child health and
wellness information for
women across Myanmar,
and they will be able to re-
ceive regular health alerts
and tips throughout the
course of their pregnancy.
A referral mechanism
will be developed that will
enable women with seri-
ous medical condition to
locate and access suitable
medical care. The user
friendly app is now avail-
able to Ooredoo custom-
ers via the Google Play
store.
Initial development
of the service was made
possible via funding
granted to Ooredoo from
LIe GSMA mWomen pro-
gramme.
The app is available free
of charge to all Ooredoo
customers. Ooredoo said
the developers will imple-
ment a commercially sus-
tainable model to ensure
that the service continues
to develop and will posi-
tively impact women’s
health across Myanmar.
¨We Iuve so muny excIL-
ing plans for further devel-
oping the app to provide
even better healthcare for
women across Myanmar,”
TIIrI Kyur Nyo, un Oore-
doo spokeswomun, suId.
¨We`ve seen greuL In-
terest in the app ... Ulti-
mately the app will reach
a large number of a well-
dehned uudIence und oI-
fers opportunities to the
medical and pharmaceu-
tical sector, and beyond.”
May May is the latest in-
novation to be born out of
Ooredoo Myanmar’s Ide-
aBox programme, which
aims to cultivate local ICT
sector that will see the de-
velopment of a range of
Myanmar language sites
and applications.
Myanmar Connect ¸~~,
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Thui Troe Corp Suys Tulks with
Myunmur's Yutunurpon on Hold
Manunphattr
Dhanananphorn
T
hailand’s True
Corp, controlled
by billionaire Dha-
nin Chearavanont, said
its negotiations with My-
anmar’s Yatanarpon Tel-
eporL (YTP) ure on IoId,
but the company contin-
ues Lo Iook Ior opporLunI-
ties to open telecommu-
nication services in the
country.
“There are some condi-
tions that the two sides
can’t agree,” Chief Finan-
cIuI Omcer NoppudoI Dej-
Udom told Reuters.
True said in February it
wus In LuIks wILI YuLunur-
pon to start mobile phone
operations in Myanmar.
¨WIuL we oßer Is super
IuIr. Now, we ure open
to Yatanarpon to negoti-
ate with other operators.
True Is sLIII wuILIng,¨ Nop-
padol said, adding under
the previous agreement,
the two companies were
not able to negotiate with
other partners.
However, True has set
up a subsidiary to operate
some services in Myan-
mar soon, he said without
giving details.
True operates a wide
range of telecoms services
In TIuIIund, Irom hxed-
line to mobile and broad-
band Internet to cable tel-
evision.
¡ucIng sLIß compeLI-
tion and slowing growth
at home, True has set
its sights on the rapidly
growing economies of
Southeast Asia. The Thai
telecom group will join
wILI CIInu MobIIe ¡Ld
to expand in the region,
NoppudoI suId.
True Chief Executive
Supachai Chearavanont
has said True Corp aimed
to sign on 100 million
subscribers in the region
over LIe nexL hve yeurs,
which would be almost
hve LImes us mucI us ILs
current subscriber base in
Thailand. Reuters
Myanmar Summary
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q:·:. , . · . · ._ Thai True
Corporation._ _.,.:.··.
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~.~.¡~ .¸¸··.:.._.
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
Euromoney Awards for
Excellence 2014
U Set Aung, deputy governor of Central Bank. Kyaw Min
Attendees at the Euromoney Awards for Excellence event. Kyaw Min
Mercedes-Benz Launching of Te New C-Class
Dancers perform at the event. Phyo Tu Customers see the Marcedes-Benz C-Class. Phyo Tu
Customers see the Marcedes-Benz C-Class. Phyo Tu Guests pose for a photo. Phyo Tu
Toyota’s Brand New Car Sales Launch Party
Presenter Tin Moe Lwin at the event. Zarni Min Naing Te choir sings a song. Zarni Min Naing Saori Kanda performs her drawing skills at the event. Zarni Min Naing
Seiji Kai, general manager of Toyota Motor
Asia Pacifc, gives his speech at the event.
Zarni Min Naing
Te attendees look at a Land Cruiser Prado at the event. Zarni Min Naing Hilux, the new model of Toyota. Zarni Min Naing Corolla, the new model of Toyota. Zarni Min Naing
U Zaw Min Win, chairman of Myanmar
Industries Association and vice chairman of
Union of Myanmar Federation of Chamber
of Commerce and Industry, gives his speech
at the event. Zarni Min Naing
U Aye Zaw, managing director of Aye and
Sons Services Ltd, gives his speech at the
event. Zarni Min Naing
Ryoji Fujita, managing director of TTAS
Co., Ltd, gives his speech at the event.
Zarni Min Naing
U Myo Myint Tein, general manager
of TTAS Co., Ltd, gives his speech at the
event. Zarni Min Naing
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
31
September 25-October 1, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
Restuorunt Serves Ithnic Coisine - With Side-Ðish oI Conüict Resolotion
Matilda Egere-Cooper
I
t doesn’t want to force a
message down your throat,
but it hopes that by the
time you leave you might have
digested more than just din-
ner. ConßIcL KILcIen ¡ondon
wants to be a restaurant with a
conscience.
The pop-up eatery, launched
ahead of the International Day
of Peace on September 21, is
serving traditional food from
Myanmar, Jordan and Peru to
encourage discussions about
the prospect of peace in those
countries.
More than 100 people attend-
ed LIe hrsL week oI LIe LIree-
week resIdency uL MonIkers, u
spuce In EusL ¡ondon.
A mixed crowd of locals,
foodies and nationals of
Burma, the country now called
Myanmar, got a chance to meet
new people and try dishes
including hincho, a spicy soup,
und u cIIcken-und-coconuL
curry served with egg noodles.
As the £35 three-course meal
was being prepared, guests
broke LIe Ice wILI sLrungers,
using conversation cue cards
about everything from Myan-
mar’s largest exports to the
number of years its opposi-
LIon Ieuder, Aung Sun Suu KyI,
spent under house arrest.
They could also order themed
cockLuIIs, wILI u NegronI
masquerading as a “Rangooni”,
after the original name of
Myanmar’s commercial capital
Yangon.
Debbie Riehl, an up-and-
coming Myanmar-born chef
and artist who conceived and
prepared the dishes, said the
restaurant catered to a number
of needs.
¨To LuIk ubouL gIobuI Issues
over a meal? I just had to get
on board with this,” she said.
“It’s non-confrontational, peo-
ple are having conversations
about things, and exchanging
ideas, thoughts, views, every-
thing.”
The agendas for debate are
C
o
n
f

ic
t

K
it
c
h
e
n
far from rigid. On one table
conversation soon swayed to-
wards the topics of the Scottish
referendum and the current
state of music education in the
UK.
On another, a pair of Bur-
mese friends discussed how
they had never attended such
an event before and could
usually share Burmese food
only in one of the few Buddhist
monasteries in the capital.
Debbie added: “A lot of Bur-
mese people have come as well.
They’re thrilled that there is a
Burmese pop-up but also to be
ussocIuLed wILI someLIIng IIke
this because they’re obviously
more uwure oI LIe conßIcL In
Burma.”
The creative decor is designed
to bring diners up to speed
with the issues. A large rolling
cIuIkbourd ouLIInes LIe IIsLory
of Myanmar as a creative info-
graphic. Communal tables have
placemats with world maps.
“Peace i s a mar athon”
A bell rings before each
course is served, followed by
a “fact” shared by Phil Cham-
pain, director of Emerging
Programmes at International
Alert, the charity behind the
concept.
He outlined the history of
Burma’s independence from
Britain in 1948, decades of
authoritarian military rule
and the reforms in 2010 which
could lead to the country’s
transition to a full democratic
government.
“But peace is a marathon, not
a sprint,” he said.
He udded LIuL ConßIcL
KILcIen ¡ondon wus InspIred
– loosely – by Cocina del
ConßIcLo (ConßIcL KILcIen), u
project in Pittsburgh, Pennsyl-
vania which only serves food
from “countries with which the
UnILed SLuLes Is In conßIcL¨.
TIe non-prohL pop-up Is purL
of International Alert’s current
TuIkIng Peuce IesLIvuI, wIIcI
oßers u serIes oI peuce-reIuLed
evenLs ucross ¡ondon.
¨¡L`s very mucI IookIng uL
LIIs kInd oI Iood us u wuy oI
bringing people together to
uILImuLeIy resoIve dIßerences
and reconcile and also deepen
understanding,” Champain
said.
A few days later, diners were
InvILed Lo LIInk ubouL Jordun,
IucIng pressure Irom un Inßux
of refugees from Syria, Iraq and
the Palestinian territories.
TIe hnuI week wIII puL LIe
spotlight on Peru, where there
Is conßIcL beLween IndIgenous
people and companies over
land rights and natural re-
sources.
¨¡ LIInk IL`s unusuuI Lo Iuve
food mixed with politics but
those are two things I enjoy,”
suId NInu HurrIs, un 18-yeur-
oId sLudenL Irom ¡ondon wIo
came to the Jordan evening
with her sister.
“I’ve really enjoyed the even-
ing. It was good to mix with
dIßerenL uge groups, peopIe
wILI dIßerenL jobs und buck-
grounds.”
Robert Sutton, a 36-year-old
AmerIcun IIvIng In ¡ondon,
agreed. “It’s a good way to meet
u IoL oI peopIe Lo LuIk ubouL
issues that are current topics in
LIe worId. You cun LuIk Lo peo-
ple about their views and enjoy
food represented from their
counLrIes hrsL Iund. ¡L`s reuIIy
good.” Reuters
Yungon to Host ±o1q Ioropeun Iilm Iestivul
Aye Chan Wynn
T
he European Film Festi-
val 2014 will be held in
Yangon from September
25 to October 5, the European
Union Delegation to Myanmar
announced.
A total of 10 movies will be
showed from six European
countries – Italy, Germany,
¡runce, LIe UK, ¡reIund und
SwILzerIund - und ¡srueI uL Nuy
Pyi Taw Cinema Hall in Yan-
gon.
BesIdes, hve documenLury
hIms Irom WuLIunn ¡IIm ¡es-
tival will also be shown before
each screening
The festival will act as a
bridge between the cultures of
Europe and Myanmar, the Em-
bassy of Switzerland in Myan-
mar said in a statement.
TIe LIckeLs ure uvuIIubIe Ior
Iree uL LIe Nuy PyI Tuw CInemu
and can be bought one hour
before screening.
TIckeLs ure uvuIIubIe uL LIe
Nuy PyI Tuw cInemu Ior Iree.
TIey cun be Luken 1 Iour be-
fore starting the show.
Films will be shown twice a
day. The genres range from
thrillers and dramas to com-
edies, and there is even an
animated movie for children to
enjoy.
E
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r
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