Myanmar Business Today is Myanmar’s first and the only bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories. For more information please visit www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday Twitter: @mmbiztoday
Google Plus: https://plus.google.com/107379179269023670071/posts
Linkedin: http://www.linkedin.com/company/myanmar-business-today
Myanmar Business Today is Myanmar’s first and the only bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories. For more information please visit www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday Twitter: @mmbiztoday
Google Plus: https://plus.google.com/107379179269023670071/posts
Linkedin: http://www.linkedin.com/company/myanmar-business-today
Myanmar Business Today is Myanmar’s first and the only bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories. For more information please visit www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday Twitter: @mmbiztoday
Google Plus: https://plus.google.com/107379179269023670071/posts
Linkedin: http://www.linkedin.com/company/myanmar-business-today
Myanmar Business Today is Myanmar’s first and the only bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories. For more information please visit www.mmbiztoday.com.
Facebook: www.facebook.com/MyanmarBusinessToday Twitter: @mmbiztoday
Google Plus: https://plus.google.com/107379179269023670071/posts
Linkedin: http://www.linkedin.com/company/myanmar-business-today
mmbiztoday.com Inside MBT mmbiztoday.com April 10-16, 2014| Vol 2, Issue 15 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL Myanmar Summary Myanmar Summary Contd. P 12...(Public Finance) Contd. P 12...(Public Finance) Contd. P 21...(IMF)) Contd. P 21...(IMF)) Myanmar Gets A Leg Up to Revamp Public Finance System Secures $55-m World Bank loan Pann Nu T he government last week received ap- proval to a multi- IuLeruI hnuncIng oI $ million to overhaul My- unmur`s woeIuI pubIIc h- nance system, donors of LIe projecL suId. The World Bank will provIde u $o mIIIIon credit from the Interna- tional Development As- sociation (IDA) for the Modernization of Public Finance Management Project, while the Austral- ian government and the UKs Department for In- ternational Development (UKAD) wIII co-hnunce the project through a multi-donor trust fund for Myanmar by provid- Ing $8. mIIIIon und $16. mIIIIon respecLIveIy. The project aims to sup- porL em cIenL, uccounLubIe and responsive delivery of public services through the modernisation of My- unmur`s pubIIc hnuncIuI management systems, the WorId Bunk suId. The project will also help strengthen revenue administration, which is expected to increase the eecLIveness oI Lux und non-tax revenue mobi- IIsuLIon. ncreused rev- enues in turn will create hscuI spuce Ior IncreusIng expenditure on public ser- vices that will help reduce poverty, the Washington- bused Iender suId. The bank said the pro- ject will also improve LIe em cIency oI pubIIc service delivery through ~.:~- ~_.__._. q:e_e.~.~~.q.~e~._. _~.. .... ~..q~,..'.: .,. ,~ ~:. ~.:._._. . q: _:.q.. . ., . . . . ~ , . ~~ ~ _., .:. ~ .:~ . ....:..__e._.. _..._~.. ~. .q. e .~-~_._ _._ . q:e _e .~ .~~ .q._:,(UKAID) ~ . ~..q ~, ..'.: ... .,.. ~..q~,..'.: ~' ... .,.~.....~ ._ . . ...| ..:~ . . .:. _....:..__e.._~:. .q ._. e...~,.~.,_e _.,.: . -~.:._._ . . q:_: .q.q:. . ., . . .,. . :.~:. ..~ . ~ .~~ .:.._. ._e ~. , ~~e .q:~ .~: .. , _.. ~:~,...q..: ~.:. _._ . ~, ..: . .:.~ .:~ . ....:..q,_e.._~:. ~.: ~. ._.:_~:..._. e...~,.~.,_e ~. ...,..~ ....:.:..q, ~~~._. ~~~_.... .__e.._. ~...~.~~ .:_..~:._e ~...q~~ Irresistible getaways! Book now till 13 April 2014 Travel now till 31 July 2014 Fly from Yangon (4x Daily**) / Mandalay (Daily ights) Fly from Yangon (2x Daily) Kuala Lumpur Bangkok USD* 5 Lowest fare only @ airasia.com Find more @ ask AskAirAsia.com f Facebook.com/AirAsia Yangon : No 37, Level 1, Room 111, La Pyae Wun Plaza, Alan Pya Pagoda Road, Dagon Township AirAsia Travel & Service Centre 01-370 847, 09 2540 49991-3 Mandalay : Room 3, 26th (B) Road, between 78th and 79th Road, Mandalay 09 42 111 7111 Many more destinations from Yangon Phuket Siem Reap Hong Kong Ho Chi Minh City Macau *Airport taxes and fees apply. Promotion seats are limited and may not be available on all ights, public holidays, school breaks and weekends. A payment processing fee is applicable to all payments made via credit, debit or charge cards. Our other terms and conditions of carriage apply. ** 2x Daily efective from 21 April 2014. Our Authorized Agents: Sun Far Travel 01-243993, 02-74333, 01-255338 Seven Diamond Travels 01-203549, 02-72868, 01-500712 Than Than Travel 01-704190, 09-5007350, 01-255035 Columbus Travel & Tours 01-229245, 378535, 09-250026030 Nice Fare Travel 01-393088, 02-30833, 01-384274 UA Ticketing/Tour 09-5402525, 02-22311, 067-8420031 as well as other authorized AirAsia agents across Myanmar USD* 46 Growth Outlook Positive bot Inution A Worry: IMI Phyu Thit Lwin T he International Monetary Fund (IMF) last week said Myanmars econom- ic outlook is favourable buL rIsIng InuLIon und slim international reserve pose a challenge to the Southeast Asian nation which initiated sweeping economic reforms in the IusL coupIe oI yeurs. Myanmars real GDP growLI In zo1zJ1 hs- EmpIoyees count and pack money inside a bank in Yangon. IMF said inHation remains eIevated in Myan- mar, and there are pressures from rapid money and credit growth and kyat depreciation. M in z a y a r / R e u t e r s cal year (year ending In MurcI) reucIed ;. percent, led by services, and is expected to rise IurLIer Lo ;. percenL In Yzo1J1q und ;.; per- cenL In zo1qJ1, LIe PurIs- based lender said follow- ing the completion of its second und hnuI revIew oI LIe SLu-MonILored Pro- gram (SMP) with Myan- mur. SMP Is un InIormuI und exIbIe InsLrumenL _ ., .:. -. . . :. .q. ~ .:.~.:._ ..:~ . . _.~.q:~.,~:.q.,..: ._ .. , . ._ . . ~,_ .e ~~....:..q._._.._.:.. . . :.~ ~.~: ~_ .e: ..:q~...:_.,.:.~ ~~ .._~..e:....: ., ..'. ~ ~. q. ~_ e. q ., ._ ~: .~_ ._ _ ._ . q:. PowerIng Myunmur (PurL ).. P-7 Ericsson Bags Telenor Myan- mur ConLrucL.. P-11 IFC Taps Myanmar Hotel nIrusLrucLure.. P-zq April 10-16, 2014 Myanmar Business Today mmbiztoday.com 2 LOCAL BIZ MYANMARS FIRST BILINGUAL BUSINESS JOURNAL Board of Editors Editor-in-Chief - Sherpa Hossainy Email - sherpa.hossainy@gmail.com Ph - 09 42 110 8150 Editor-in-Charge - Wai Linn Kyaw Email - linnkhant18@gmail.com Ph - 09 40 157 9090 Reporters & Writers Sherpa Hossainy, Kyaw Min, Wai Linn Kyaw, Shein Thu Aung, Phyu Thit Lwin, Aye Myat Yasumasa Hisada, Pann Nu Art & Design Zarni Min Naing (Circle) Email - zarni.circle@gmail.com Ph - 09 7310 5793 Ko Naing Email - nzlinn.13@gmail.com Ph - 09 730 38114 DTP May Su Hlaing Translators Shein Thu Aung, Phyu Maung, Wai Linn Kyaw Advertising Seint Seint Aye, Moe Hsann Pann, Htet Wai Yan, Zin Wai Oo Advertising Hotline - 09 420 237 625, 09 4211 567 05, 09 31 450 345 Email - sales.mbtweekly@gmail.com Managing Director Prasert Lekavanichkajorn pkajorn@hotmail.com 09421149720 Publisher U Myo Oo (04622) No. 1A-3, Myintha 11 th Street, South Okkalapa Township, Yangon. Tel: 951-850 0763, Fax: 951-8603288 ext: 007 Shwe Naing Ngan Printing (04193) Printing Subscription & Circulation Aung Khin Sint - aksint2008@gmail.com 09 20 435 59 Nilar Myint - manilarmyint76@gmail.com 09 4210 855 11 Khaing Zaw Hnin - snowkz34@gmail.com 09 4211 30133 Business News in Brief Tani nthar yi plans 5 power plants despi te pr o- tests The regional government of Tanintharyi in southern Myunmur Ius decIded Lo buIId hve couI-hred power pIunLs, rungIng Irom o Lo z,6qo meguwuLLs, despILe proLesLs by IocuI peopIe, u Lop governmenL om cIuI suId. The projects will go ahead if the World Bank and the Union Ministry of Electric Power approve the EIA and SIA reports, Electrical and Industry Minister Win Swe suId. REE to enter Myanmar mar ket Vietnams Refrigeration Electrical Engineering (REE) Group is planning to enter the Myanmar market, Viet- num EconomIc TImes reporLed. REE wIII Lup LIe souLI- east Asian countrys market by joining a project devel- oped by Vietnamese property giant Hoang Anh Gia Lai (HAG), wIIcI Is buIIdIng u mussIve $oo-mIIIIon pro- jecL In Yungon, uccordIng Lo LIe reporL. Cr ui se shi p ar r i val i n Myanmar hi ts r ecor d The number of cruise ships visiting Myanmar in the hrsL LIree monLIs oI zo1q Ius surpussed LIe LoLuI urrIv- uI In zo1, uccordIng Lo LIe Myunmur PorLs AuLIorILy. A total of 11 ships came to the country six in Febru- ury, hve In MurcI - wIIIe eIgIL cruIses wILI over q,ooo pussengers vIsILed In zo1, LIe IIgIesL number In Len yeurs. AnoLIer 1q cruIse sIIps pIun Lo vIsIL Myunmur LIIs yeur. Amar a Holdi ngs Ltd announces Myanmar Company i ncor por ati on SIngupore-bused IoLeI und properLy hrm Amuru Holdings Ltd has incorporated a wholly owned group subsidiary, Myanmar Central Investment Pte Ltd, in SIngupore, LIe compuny suId. usL yeur Amuru suId IL formed a JV with a local partner to develop hotels and engage in other real estate projects in Myanmar, in- cIudIng buIIdIng u $o-mIIIIon IoLeI. I FC to help YESB go pr i vate A new power generation project will be jointly im- plemented by the World Banks private lending arm International Finance Cooperation (IFC) and Yangon City Electricity Supply Board (YESB), according to lo- cuI medIu reporLs. TIe projecL uIms Lo LrunsIorm YESB into a corporation and IFC is now conducting a survey on electricity consumption, power charges and supply sysLem In LIIs regurd. C wIII Iuve qq percenL sLuke In the new entity and Myanmar government will hold the resL. TIe Iender sIgned u conLrucL wILI Myunmur OrIen- LuI Bunk (MOB) In ebruury Lo oer moneLury servIces In Myunmur. For ei gn i nvestment br i ngs over 150,000 j obs Foreign investment in Myanmar has created more LIun 1o,ooo jobs Ior Myunmur cILIzens, uccordIng Lo LIe Myunmur nvesLmenL CommIssIon (MC). TIe amount of foreign investment into Myanmar exceeded $q bIIIIon In Junuury, uccordIng Lo LIe MInIsLry oI Nu- LIonuI PIunnIng und EconomIc DeveIopmenL. 100 log tr ucks stuck i n por ts AbouL 1oo Iog-Iuden Lrucks remuIn uL Yungon und Thilawa ports after a country-wide deadline banning ruw LImber exporLs, uccordIng Lo IocuI medIu reporLs. TIe sIIppIng oI Iogs wus sLopped uL 11pm on MurcI 1 after the state-owned Myanmar Timber Enterprise de- cIured u nuLIon-wIde bun on LImber exporLs. Myanmar yi eldi ng oi l for I nter r a Resour ces SIngupore`s nLerru Resources Ld. suId IL conhrmed one oI ILs weIIs, CHK 118z, In LIe CIuuk oII heId In My- unmur wus producIng oII Ior LIe compuny. CHK 118z is the sixth well to be completed as an oil producer in Myunmur In zo1q, nLerru suId. However, LIe hrm guve no IndIcuLIon oI LIe reserve poLenLIuI uL LIe heId buL LIe US Energy Information Administration said crude oil production in Myanmar is minimal though increas- Ing. Myunmur Is u neL oII ImporLer. Myanmar Summary .... _._ . .:.. .. _.. .:.q .,..: ._ _., .:. .~: . . ~,.:q~...._~.~..q~.,_e ~.|~.. ',~.|~. ~~...._.~:~............:~~:.....~ , |.. ~ ~_ ..:~ . :.q, . ._e~ .._~:. .q._. -e~,..- Refrigeration Electrical Engineering (REE) Group .__.,.:...~~.~.q:~q,_. . .,._~: . Viet- nam Economic Times . .~..e:_..._.REE ._ - e~ ,. . -~ . _. ._.. . , ._~._e...: Hoang Anh Gia Lai (HAGL)._ q, ~ , ~ ~..q ~, ..'.:., .,~~..:~q ._ . . ~ , .~ .|~ _. ._e _., .: ...~ ~ . ~ .q:~ .:._ _e.._~:..q._.~~,...-.....~:~~. _.,.:. ..q:~q.:._.q .._ ~ .. :..:~._ ~~,. . . ~. . . .~ .q:~ q . ._ ..:~~.~:.,._._e.._~:._.,.:. . ~. .~:~:. .:.-~.~ ~.~ .:.~q.q._. .e.e:~|q.~ ..:._.:~.. .~.~ |... ....|. ~~ ...q:~q.:.._. ~~, ...~ ..:~...q q... .q:~ q .:. ~: .q .._ ..| . ,~~~ .~:q.._~:. .q._. e. . . ~~ . .,:~ . .q .._ ~ ..: ~ ..~.q:~q .:q, ~.~.q.,._~:.._. .q._. . ~:. ~._.. ~ e ~e . ~ . _. ._. . . , ._e. ..: Amara Holdings Ltd ._ Myanmar Central Investment Pte Ltd . ..,.....|.._._e. ._~:..q._. .,.._..~e~e.~_.:.~._.._... ~,..:.~:...:q~q,~~~ _._~.. . , .~. . . ._ . ~ ~ .~ . ...| ..~..~ _....._~:. Amara . ._.:_~:..._. April 10-16, 2014 Myanmar Business Today mmbiztoday.com 3 April 10-16, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 4 Myanmar Summary Myanmar Summary Myanma Petrochemical Invites Foreign Investors to Operate LPG Plant Kyaw Min M yanmars state-owned Myanma Petrochemi- cal Enterprise (MPE) under the Ministry of Energy has invited letters of expression of interest (LEI) from foreign InvesLors Lo operuLe ILs IIquehed petroleum gas plant at Nyaung Don on a joint-venture basis, according to an announcement in state-run New Light of My- unmur. The last date for submission oI E Is Muy 1. MPE said in intends to im- plement joint venture between MPE and interested foreign in- vestors who have the ability in terms of worldwide experiences in LPG production, storage, dis- tribution, marketing and servic- es, hnuncIuI cupucILy, reIIubIIILy for long term cooperation with respect to business expansion and enhancing the existing fa- cIIILIesJcupucILIes Ior produc- tion, storage, distribution and marketing to operate the LPG pIunL. However, MPE said no tel- ephone enquiries shall be al- lowed with regards to getting further information, which has to be obtained physically at the MPEs Planning Department in Nuy PyI Tuw. . . .~ ~, _~ ._:,.~ .~:~ q . . _., .: .q, .:~ . . , .. ._: ~ , . _. ,e ~ liquefed petroleum gas ~.._......:~~:.....~,~:. ~~ .~ . ...| .. _e ..: q ~ . :.q, ~~ ~ . _.:.q .. ._. . . . .:.~ e ~ ..'.,._~: . . q._ .. ~ ~ .:. ._q..._.....:.~.,_e ... ~ q~.,~ .,:~.~ ..,. ~. _.. :.:.~ ~ . .. :.q._ _e. ._~:. .q._. _., .: .q, . .:~ . . , ..~ .~:~ q . . , ..:.~ . ~ ~ .:.._ . _.:. q..._.....:.~ ~~.~....|. ..: q ~ . q, e ~ ..':._. ...,. ~.~~e_e..:....:.~~.~ ~ _~ .~: ..:.q ..:. _.:.q..._... ..:.~:..q..e.:.._ _e.._. Mann Yadanarpon to Extend Domestic Routes Pann Nu M yanmars newest pri- vate airline Mann Yadanarpon will ex- Lend ILs wIngs Lo hve more do- mestic routes with its newly purchased second aircraft, a top compuny omcIuI suId. Mandalay-based Mann Yadan- arpon, the countrys ninth do- mestic airlines, will add Myit- kyina, Lashio, Dawei, Myeik, Sittway and Kawthoung as its new destinations, U Kyaw Myo, CEO oI Munn Yudunurpon, suId. TIe new ;8-seuLer ATR;z- 6oo, purcIused Irom rencI- Italian airplane manufacturer Avions de transport rgional (ATR), arrived from France last week, LIe compuny suId. To serve the growing num- ber of passengers we have purchased another plane and we will expand our schedules more, said U Kyaw Myo, CEO oI Munn Yudunurpon. TIe uIrIIne currenLIy Ies Lo Yangon, NyaungU, Mandalay, Heho, Kengtung and Tachileik wILI LIe hrsL ATR ;z-6oo LIuL urrIved In ebruury. U Kyaw Myo said the domes- tic carrier will buy one Airbus Azo pIune und expund Lo In- ternational routes within three yeurs. In addition to its scheduled domesLIc IgILs, LIe uIrcruIL will also serve as a chartered IgIL Ior domesLIc und regIonuI desLInuLIons, Ie suId. U Kyaw Myo said delivery of unoLIer ATR;z-6oo uIrcruIL by OcLober Is In LIe pIpeIIne. Myanmar Investment Com- mission granted domestic and InLernuLIonuI IgIL operuLIon licence to Mann Yadanarpon on Junuury z;. ., . q~,:...._ ~: . . . ._ _..... ~ee:...: .~e ._.:~..e: ATR 72 600 .. e: .. _e .~ q . ., .._... .,..: _._~..q...:.~_. _.,.:.- _.|._..._. ~....,..__e._.. ..,..~._ ~~e...,~ Airbus A 320 ..e:.:._e _._ ~. _._..q...:..| ~..._... .:..__e.._~:. .q._. _.... Avions de Transport Regional ~ . ~ . .,:~ . ...' ~ . . :...: .q .._ . ,. .. Turbo- prop..e: ~ ., .q~,:. ..._~: . . .. . . ~e e . _. . _.._~ .,:. .:., . _.~ :.~e. .~:..:..._ _. _~ ..:.. .q .. ~ .. . ., .. :.._ _e.._~:. .q._. .,.q~,:...._~:...._ _., .:. -~ .. ._.:~ ..._~: .. . _e. _. .., .q~,:. ..._~: .. .- .q .. ~.~ .:..e: _.q, International Air Transport Association ~.. ._ ~: .. ...~ ~7Y~ .~ . ~ ...:.._ .., .q~,:. ..._~: ... . _._ ~ .. . , .q .. .:.~_. _._ ~ . . ...~~ .. ...:..q..:.._. ..,.._....__e.._~:..q._. An IPC pIant site in Myanmar. C M C Mann Yadanarpon's ATR72-UU aircraft. Q u e n t in
B o n n e t April 10-16, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 5 Myanmar Summary CIL Sets up Myanmar Factory as Govt Bans Raw Timber Exports Wai Linn Kyaw S ingapore-based wood processIng hrm Con- corde Industries Ltd (CIL) has launched its saw milling facility in Yangon last week, the company suId. The move comes as Myanmar authorities suspended unprocessed log export starting last Tuesday to protect the countrys rapidly decay- ing forest reserves and biodiversity, mainly due Lo rumpunL IIIeguI IoggIng. Philippe Maudet, gen- eral manager of CIL, said this move from being an FOB player in the teak Iogs Lrude ow Lo InvesL- ing in processing facilities in Myanmar would en- able CIL to better service the growing demand for LruceubIe und cerLIhed lumber in the developed economIes. TIe hnIsIed wood Iuc- tory will process about 1o,ooo Lonnes oI wood annually, said CIL, which wus esLubIIsIed us u 1oo percent foreign-invested compuny. TIe compuny Ius empIoyed over zoo sLu members und wIII export its products to the European countries, it suId. nvesLIng In hnIsIed woods factory gives My- anmar a chance to ex- porL, MuudeL suId. TIe saw mill investment is a step in the implemen- tation of the companys strategy to participate with Myanma Timber Enterprise and Myanmar government in promoting growth and development oI Myunmur`s cerLIhed Iumber secLor, Ie suId. Maudet said CIL would be working closely with the Ministry of Environ- mental Conservation And Forests (MOECAF) on receiving recommenda- tions from international timber organisations after a group of experts includ- ing forestry management omcIuIs Is Iormed. At the commissioning of the saw milling facility, U Win Tun, union min- ister for environmental conservation and forests, said Myanmar wants to establish more timber fac- LorIes. License validity for saw mill and plywood as well as for wood-based mills has been extended from one yeur Lo hve yeurs sInce zo1, uccordIng Lo LIe mInIsLry. The government en- courages wood-based in- dustries because it plans to stop the export of big timber logs, Than Swe, advisor to CIL, told state- run medIu. GovernmenL omcIuIs said this is a good devel- opment for wood-based industries entrepreneurs as Myanmars export of value-added products would bring about higher income, technical trans- fer and more employment opporLunILIes. Meanwhile, the govern- ment stopped exports of raw logs last week in a bid to ensure sustainable uti- lisation of forest reserves and enhance environ- mental conservation and the countrys biodiversity, MOECA omcIuIs suId. ExporLIng onIy hnIsIed or semI-hnIsIed wood products helps upgrade production technology and bring business op- portunities for the local peopIe, LIey suId. AccordIng Lo omcIuI sLu- tistics, Myanmar export- ed q8,6oo cubIc Lonnes oI Leuk Iog und ;zq,zoo cubic tons of hardwood Iog In zo1z-1, eurn- Ing $z;. mIIIIon und $zoq.8 mIIIIon respec- LIveIy. Suspension of log ex- port would reduce teak and timber production compared with the past, U Tin Tun, director gen- eral of the ministry, told XInIuu news ugency. n LIIs hscuI yeur zo1q- 1, onIy 6o,ooo cubIc Lonnes oI Leuk und 6;,ooo cubic tonnes of timber are expected to be pro- duced, down from about zoo,ooo cubIc Lonnes oI Leuk und 1.z mIIIIon cubIc tonnes of timber annually In LIe pusL severuI hscuI yeurs up Lo zo1z-1, Ie suId. He said Myanmars for- esL coveruge reucIed ; percent of the countrys LoLuI ureu beLween 1q8o und 1qqo, buL dropped Lo q; percenL recenLIy. . ~:. ~._.. ~ Concorde Industries Ltd (CIL) ._ .,.._~.~~ ....~, ~. . ~ .~ ..: q ~ . ._~: . ~. .|~ . ~ . ._.:_~:.. ._ . ...:.~:. ~...~~.. ~ _., .: ~:~:. .:.~~:._.. .~_...,:~ e.~. .. ~..:_ ~ . . . . . , ..:. ~:. ..: q ~ .:_. ._e. ._ . ~q:..~ .. ~ . . ~ . . .:.._~: ...~:.:._.,.~. .. q:. ~ ._.: .. . .:._e. ..'._~~~ ~:~,q..:. . e.~. ...:.~:.~.. .~~..~ ~q:.~~:._.. . ~_. .. _e. ._ .CIL . ~. ..,.,:_e.. Philippe Maudet ~ e. ~ . .. ~. . . ~ ~..,..q:.~e..._ .. ~..:_ ~ . . . . ._.: ..q..._..._..~:._e CIL ~.,_e ...~:.., ..:~, ..: . .:.~ _.. . ... . :.. ._ _e. ._~: . ._.:_~:. .._. ~. .|.. .~ , . ~. . . . .. .~ q. ~, . , ~~~~~ ~, ~~:. ..~..:_~_e. ~...:...__e.._~:. ~. .|~ . ~ ~:.~~~q:. . , .~_._ ._.:.q..._.... _e~_.: . _. ._e. _. . ~ . ~ . ~. . ..:...| .~~ .~: ~ ~. . ., ~. . _. ., .-.. ~ ~ , .:.~:. .q:.. .:.. ~ ..:.._e CIL . ._.:_~:.. ._. U Win Tun, union minister for environmentaI conservation and forests, inaugurates Concorde Industries Itd's new pIant in Yangon. C o n c o r d e April 10-16, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 6 Myanmar Summary Myanmar Summary Thui Oil Wunts to Boild Lurge Renery in Myunmur Yasumasa Hisada A new oII rehnery LIuL TIuI Oil Pcl wants to build in Myanmar would have u cupucILy oI 1o,ooo burreIs- per-duy, TIuIIund`s Lop rehner suId. TIuL wouId muke IL LIe hrsL such large-scale facility con- structed in several decades in the country as it opens up to in- vestment after a quasi-civilian governmenL Look omce In zo11. The company will propose LIe rehnery us purL oI u bId Lo win a deal to upgrade two state- owned rehnerIes In LIe souLI oI Yangon, with capacity of about zo,ooo bpd eucI, cIIeI execu- LIve omcer Veerusuk KosILu- paisal said after a shareholder meeLIng IusL week. We will propose the new re- hnery pIun LogeLIer wILI LIe upgrade plans to the Myanmar government, Veerasak said, without giving details on cost or IocuLIon. Thai media previously report- ed LIe hrm wunLed Lo consLrucL u rehnery In ILs neIgIbour, buL details on the size were not in- cIuded. As part of its Southeast Asian expansion, Thai Oil is also keen to join with Indonesian state oII hrm PerLumInu Lo InvesL In wax production in that country, Veerusuk suId. Its shareholders also ap- proved u pIun Lo seII up Lo $oo million in bonds to fund future InvesLmenL, Ie suId. TIe rehner, wIIcI recenLIy ex- panded into the solvent chemi- cal business in Vietnam, aims Lo InvesL $oo-$oo mIIIIon u yeur over LIe nexL LIree yeurs. BottIes of Pepsi coIa are seen in a dispIay. Pepsi Opens Myanmar Bottling Plant Aye Myat P epsiCo Inc and Lotte-MGS Bever- age (Myanmar) Co, the companys bottler in Myanmar, said the US beverage giant will be lo- cally producing its Pepsi- Cola in the country for the hrsL LIme sInce ceusIng producLIon In 1qq;. Myanmar consumers can now enjoy locally- manufactured Pepsi-Cola In oo-mI reLurnubIe glass bottles, with plans to expand into aluminium cans and other package formats in the coming weeks, PepsiCo said in a sLuLemenL. Mansoor Ali, general manager, PepsiCo My- anmar, said: The open- ing of this bottling plant represents an important mIIesLone In our journey. Ali said Myanmar is a market with great poten- tial and Pepsi continues to take steps to build our business while also play- ing a constructive role in Myanmars ongoing de- veIopmenL. PepsiCo re-entered My- unmur In zo1z vIu u purL- nership with Diamond Star, a local distributor, before teaming up with LOTTE-MGS this year to M ik e
S e g a r / R e u t e r s ....q,.~..,.~.._e. ._ Thai Oil Pcl ._ _., .:. ~ ~. ., . .q, ._ ..| . ~~,~~~ ~ . . . ._ .q, .~ . . , .~:. ~_ .: ..: q ~ . :.. .,._~: . .. - . ~, ..q, .~ . . , ._~ . _e.._ Thai Oil Pcl . ._~_:. ._ .e. . . , .~:. ~_ .: ..: q ~ _e. . .|~ .e . . . ~. . .~: ~~ . _.,.:.~ .....~_~.~_e. .q, .~ . . , ._~ .~. . ~ ~_ .: ._.._e.._~:.._. .q._. q,~,_..~:~q ...q, .~ .~ , . . . ~ ._ . ~. ., . .q, ._..|. ~~~~ ~ ~... ._ ~ ~. _. ~ q, ~~ ~ ..:~ _ . qq q, . . , .~. _. ..:~:..:..__e.._~:. ~. ..:.. Veerasak Kositapaisal ~ .,.._~.~~ _......: qee:q.:..~........~_.._ ._.:_~:..._...~~.,_e _.,.: ~..q-.q,.~.~,.:.~:. ~. _. ~ . ~. ~. . ~~ .q, .~ .~ , .. ~ ~_ .: . :.q, ~. ~. ~._. ~._.~...:..__e. ._~: . Veerasak ~ ._.:_~:.. ._ . locally manufacture its beveruge producLs. Byoung Tak Hur, man- aging director, Lotte- MGS, said the company is investing to build a world-class manufactur- ing and distribution sys- tem to support the future expansion of our busi- ness. Developing and emerg- ing markets have account- ed Ior percenL oI Pep- sICo`s revenue In zo1, und it aims to tap Myanmars frontier market, which has strong growth potential and a population of about 6o mIIIIon. PepsiCos portfolio comprises 22 brands in- cluding Quaker, Tropi- cana, Gatorade, Frito-Lay and its net revenues stand uL more LIun $6 bIIIIon. oLLe Group Is LIe hILI largest conglomerate in Koreu und recorded zo1 revenues oI $;6 bIIIIon. PepsiCo has a long- standing business rela- tionship with the Lotte group of Korea, a multi- national food and retail conglomerate, and has worked closely with the company in Korea since 1q;6 und In LIe PIIIIp- pInes sInce zo1o. ~..q ~, . -~. q_ . . , ._~ ._e...: Pepsi ._ ~ . . ..,:~ . .~ .. . . .~_~ . ~_e. .~ . ,. ~ .: ~:. _.,.:_._~._ ~.. .:.._e PepsiCo Inc . L otte-MGS Beverage (Myanmar) Co ~ ~ ._.:_~:. .._. e. ~.| _., .:. . .:.. .. .:.~.,_e _._ ~ .. ~ . . ..:.~ . ,. ~.:~:. ..:~ . .. :.. ._ _ e. ._ ~: .. .:._ q~ .~ .~ .:.~~ . e,..._e ......~_. . ..:.. .:.~~_.:. ~ . . ....:._e ._ . ~ . . . :. ._ e Pepsi ~ . ~ ~ ._~_: . ._..~ .,.~.: ~ . . . .~ , ~:. ~_ .: e . . . ._ . . ~ ~~ ~ ~.q..|._ . ~ ~ ~. . . _ e. ._~: . Pepsi ~.,_e ._ ._., .:. -.~ q e _e .~.~~.~ ~ _...:..: ._ ~., .~_ ~ .|~ .,_. .. . ~ -. . , ..:. ~ ~_ .: . :.q,~~~._. . . ..~: ..:.~ .~ .~ ..:~ . . .. :.._ e Ali ~ ._.:_~:.. ._ . Workers waIk at an oiI renery. A n t o n io
B r o n ic / R e u t e r s April 10-16, 2014 Myanmar Business Today mmbiztoday.com 7 LOCAL BIZ Myanmar Summary Contd. P 8...(Powering Myanmar) Contd. P 8...(Powering Myanmar) Powering Myunmur {Purt II): Investors Wutch Closely as Government Cautiously Cuts Subsidies Te second part of Breaking Energys series on Myanmars power sector takes a look at the pricing structure and future demand projections. Kate Rosow Chrisman T he government in Myanmar is show- ing resolve: just months after backing down over price hikes to electricity, the issue is buck on LIe LubIe. usL month, in a move many expected only after next years elections, Myan- mars parliament ap- proved u new bIock LurI scheme for households und IndusLry. TIe prIce hike should stem some of the governments haem- orrhaging from massive subsidies to the power sector, but prices will re- main under production costs, according to ex- perLs. In Myanmar, just like many other parts of the world, electricity pricing is as much about politics us IL Is ubouL economIcs. Until the government gets the politics right, experts warn that the countrys electricity costs will con- LInue Lo sLIe economIc growLI. The str uctur e Turning on the lights in Myanmar falls heavily on the government it was desIgned LIuL wuy. TIe countrys power sector is based on a state-owned sIngIe buyer modeI. Un- der the Myanmar Elec- tric Power Enterprise (MEPE), the government buys electricity from pub- IIc und prIvuLe producers. MEPE sells that electricity to two entities: the Elec- tricity Supply Enterprise (ESE) and the Yangon Electricity Supply Board (YESB). TIe MInIsLry oI Electric Power (MOEP) oversees the transmission und dIsLrIbuLIon. An oordohle price The adage is buy low and sell high, but as if some- thing was lost in trans- lation, Myanmar does LIe opposILe. WIen LIe government announced price hikes last fall, many commentators saw it as the beginning of a transi- tion to more stable output and an impetus for power producers to increase do- mesLIc cupucILy. BuL once that increase was revoked after protests, analysts warned that investors might be scared away for LIe LIme beIng. L`s Loo early to tell what impact this latest hike in tar- Is wIII Iuve, buL eurIIer commentary indicates it doesnt go far enough in solving the countrys probIems. SLIII, un Incre- mental and phased ap- proach to higher prices may be the only way con- sumers will accept the heavier burden, accord- ing to Vikas Sharma, an associate director at Frost & SuIIIvun In SIngupore. Indeed, the best solution is the one that works in LIe reuI worId. Even with the higher ruLes pussed on MurcI 1q, prices are below where the market would indi- cuLe. EsLImuLes Ior pro- duction costs vary, with hydropower the cheap- est, but some experts put production costs as high us K1zJkWI (uImosL $o.1JkWI), ubove LIe old and most of the new LurIs. TIuL meuns LIe government will still have Lo subsIdIse cosLs. NomILu Nair, a Singapore-based attorney with extensive energy and Myanmar ex- perience asks about the government: What hap- pens when they go bust or cant meet demand? L`s u vuIId quesLIon. I LIe government can no long- er subsidise energy, what will happen to production levels and how will the populace react? The price hike will push IouseIoId LurIs up by 1q Lo o percenL, dependIng on LIe umounL oI usuge. Commercial fees will stay LIe sume Ior 6o percenL oI companies, but for larger users (dehned us consum- Ing more LIun oo unILs u month), prices will dou- _., .:. ~.,_e ._~:.... ...:.~~. e_e.~.~~.: _. . . _.:.q .. ._. . . . .:. ~:, . ~ q:...~ ~ ~. . _e. .:..: ._ . . . .~ . ~. . _..,:~ q..,q._e.._. .... .:~~:.....,..:.~ ~._. .~:~ . ._ e ~ .e: ._.: _~:.. ._ ~~ ~ .. _.. .:._e. ..'._.. e.~.| _.,.:.~ .~: . .. .. .:~ ~:.. , .:. .:.~._..~~~__....._. _e.._.e.~. .....:~ ~:..... , ..:.~ ~ ._. .~:~ . . ._ ~. .q-. . .~ ~ . . . ~~ ~ .q ~ ~.:.~_.:.. .. q.~ .~.:...__e...: ._. ~..|....,..:. ~._. .~:~..._._. ~.. . .q ~ ~ ~:. . . ._ .e ~ ...._~:. ~..~..:.- . ... ._.:_~:..~ ~q. q._ . ~_.:.~.:~.~,.. ..:. ~ . . _., .:. ~ ._ . .. .. .:~ ~:..... , ..~ . ~ ..: ..q..:.~ ...:..q. ~q.| .~.e.,._. ~..q ~.,_e ..q.~.~:~: ~ .q.. . _., .:. - .. .. .:~ ~:.~ , ~.q ~ .:.._ ...:..q.~.~~.~ _~..: ..:~e, ~~:.~_e. .~ .~~_q.,..._e ~.. ~..:.~ .~...._.:_~:. .._. .. .. .:~ ~:.qq .q.~ . q. . :._. ~. .q~..'~ .:.. : . ~_ .,_. . . -. . .~ ~_ _._. ~..q. ~.:._._.. . . ~.. .. .:~ ~:. ~ .....,..:.. ~..~_. ~e e . _..,._ . . _e. ._ . _.,.:.....:~~:...,. . .. .. .:~ ~:..:~ . .q. ..,.. q,~,_..~:.. .. .:~ ~:.....~.q. ~ ~e ~ ~:. .. .. .:~ ~:. .:. CandIes are seen in front of a sign from the Yangon Bivision EIectricity Bistribution ofce during a pro- test against the government`s decision to increase the prices for eIectricity in Yangon. S o e
Z e y a
T u n / R e u t e r s April 10-16, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 8 From page ;...(Powering Myanmar) From page ;...(Powering Myanmar) bIe. ExperLs LeII BreukIng Energy that prices should rIse Lo beLween 1o und 1 cents from around three cents now, but the new IIke onIy ruIses LurIs by one Lo Lwo cenLs. SLIII, LIe new LurIs ure weIcome news, according to De- jan Dostojic, leader of the World Bank team on My- anmars electricity power projecL und wIII sIgnIh- cantly reduce the budget supporL oI LIe secLor. Looking back, an exam- pIe Irom OcLober zo1z highlights the enormous subsidies and unsustain- ubIIILy oI LIe progrum. AL that time, the government bougIL eIecLrIcILy uL K8o per kWh (approximately $o.o8JkWI) wIIIe seIIIng IL Lo IouseIoIds uL K or o per kWI ($o.o- o.oJkWI). ndusLry wus cIurged K; per kWI buL consumes sIgnIhcunLIy Iess LIun IouseIoIds. TIuL`s u Ioss oI K-q per kWI. And wIIIe Myunmur Is sILLIng on sIgnIhcunL natural gas resources, this is not Saudi Arabia or unoLIer sLuLe usI wILI cusI. NuIr summed IL up by saying like many oth- er resource rich countries, they are still electricity poor. Compared to its neigh- bours, Myanmar has some of the lowest elec- LrIcILy LurIs In AsIu. TIIs has led to a huge subsidy, which the government puLs uL K18 bIIIIon (up- proxImuLeIy $1q1 mIIIIon) a year, though this should sIrInk sIgnIhcunLIy wILI LIe new LurIs. WILI prIc- es below costs, producers cannot expand production to keep up with growth in demand or electrify the enLIre counLry. Remem- ber, connectivity rates are abysmally low, with esLImuLes beLween zo-o percenL. ow prIces uIso deter IPPs from entering LIe murkeL, suy experLs. Even still, foreign compa- nies are lining up for new projecLs. On LIe secLor, Dostojic told Breaking Energy, there is no lack oI InLeresL In Myunmur. While price increases may lead to widespread protests (like the backlash uguInsL LIe IIkes In zo1), the government needs to hold its nerve, and pri- orILIse Iong-Lerm benehLs over short-term populist pressures, Vikas Sharma suId. For those without ac- cess, a diesel-powered generator is an expensive but reliable option: oper- ating costs are as high as $o.oJkWI. or u coun- try so desperate for elec- tricity, its not surpris- ing that diesel fuel is one of the most commonly smuggled imports, ac- cording to the US govern- ments report on doing busIness In Burmu. Quanti fyi ng demand If its neighbour China can be said to run on coal, Myanmar runs on bio- muss. AImosL Lwo-LIIrds of primary energy in My- anmar comes from wood, charcoal, agriculture resi- due und unImuI wusLe. This highlights the scope of work the government has to transition its pop- uIuLIon oI 6o mIIIIon - mainly rural away from burning wood and ma- nure to using hydropow- er, natural gas, coal and renewubIes Ior energy. The government is eye- ing increased production, buL IL wIII be dImcuIL Lo geL LIere. Poor dIsLrIbu- tion systems coupled wILI InemcIenL pIunLs and hydropower sta- tions far removed from demand centres have all complicated Nay Pyi Tuw`s eorLs Lo Increuse producLIon. n IucL, LIe government used to con- trol all generation capac- ity, but local anger over the situation prompted the state to allow private producers into the market a few years back, accord- ing to a report by Subha KrIsInun. n zo1z, II uII power- generating plants were operating at full capac- ity, Myanmar should have produced close to q,1ooGWI. BuL LIe country generated just 1o,8ooGWI, uccordIng Lo SIurmu. As IIs unuIysIs demonstrates, its not just a matter of increasing ca- pucILy. EmcIency, poorIy maintained plants, a lack of water, transmission losses and load shedding ure uII sIgnIhcunL ureus LIuL musL be uddressed. With GDP projected Lo grow uround 6-8 per- cent annually (and some enthusiastic estimates show GDP quadrupling by zoo), LIe counLry`s electricity demand is set Lo skyrockeL. Beyond In- creasing capacity, the government has indicated IL wunLs o percenL oI LIe population connected by zozo-zoz. TIe WorId Bank is working with the government to achieve unIversuI uccess by zoo. While the connectivity rate is abysmal it has grown Irom jusL 16 per- cenL In zoo6 - eIecLrIcILy producLIon grew 1q.; per- cent annually for the past Iour yeurs. The governments low growth scenario shows demand doubling every Len yeurs. BuL more re- alistic projections show demund growIng uL 1.- 2 times the rate of GDP, ImpIyIng q-1q percenL unnuuI growLI. n zo11, the country generated 1,1ooMW buL demund wus 1,MW, sIowIng a huge gap and resulting In Ioud sIeddIng. Even if output doubled every hve yeurs, IL wouId Luke hve yeurs Lo meeL Loduy`s needs. DurIng LIuL pe- riod, demand would have grown 12 percent, accord- ing to the World Econom- Ic orum. Despite the problems associated with the coun- trys hydropower supply, Myunmur Ius IdenLIhed oo poLenLIuI Iydropower stations with a combined cupucILy oI q6,1MW. OI LIese, 6o IdenLIhed sILes would each have pro- duction capacity above oMW, provIdIng u LoLuI oI q,zqMW. While exporting natural gas, mostly to neighbours Thailand and China, only about half of the countrys gus demunds ure meL. n recent years, natural gas uccounLed Ior qo percenL of total exports, showing how much the country relies on the fuel for eco- nomIc growLI. PIuns Lo increase domestic output are in the works but these ure yeurs o, uccordIng Lo experLs. AccordIng Lo Nair, the government hinted that oil and gas tenders under review now would prioritise domestic use. With higher prices and a surging demand struc- ture, Myanmar desper- ately needs to encourage IPPs to build additional cupucILy. This article is the sec- ond of a series in Break- ing Energy on Myan- mars power sector. It was originally published in Breaking Energys website and has been re- published with the publi- cations permission. The jncl pcrt, uhich uill be published in Myanmar Business Today next ueel, uill shed liht on independent power pro- ducers (IPPs) and foreign direct investment (FDI) in Myanmars power sec- tor. Illegal Chinese Logging Threatens Rare Myanmar Monkeys Wai Linn Kyaw I llegal Chinese logging and hunting are threatening an endangered monkey species in Myanmars northern Kachin state, a conservation body said IusL week. UK-based Fauna & Flora In- ternational (FFI) said hunting for food and traditional medi- cine, as well as accelerated de- forestation caused by illegal Chinese logging are the main threats for the Myanmar snub- nosed monkeys. The species is listed as Criti- cally Endangered on the IUCN Red List, with only an esti- muLed z6o Lo o IndIvIduuIs survIvIng In LIe wIId. DIscov- ered In zo1o, LIe rure prImuLe remained elusive until FFI said last week that it was also able to cupLure LIe worId`s hrsL vIdeo IooLuge oI LIe specIes. Since the discovery, FFI has started a community-based conservation programme in Myanmar, which provides al- ternative livelihoods to local indigenous hunters and oper- ates a community ranger pro- grumme Lo proLecL LIe specIes. FFI said this has already had u sIgnIhcunL ImpucL on reducIng LIe IunLIng pressure. However, Chinese illegal log- ging continues to threaten the specIes` survIvuI. Due Lo recenL urmed conIcLs LIIs remoLe border remains largely outside of state control and Chinese log- ging roads continue to scar the HImuIuyun mounLuIn runges. FFI said the pending gazette- ment of the new Imawbum Na- tional Park in Kachin where urmed conIcLs Iuve ceused recently due to the ongoing peace negotiation process will improve the species chance of survIvuI. Frank Momberg, FFIs Myan- mar Programme Director, said: Iope LIe omcIuI NuLIonuI Park designation will make the dialogue with Chinese authori- ties easier to stop illegal trans- boundury IoggIng. Myanmar Summary .q: .._. . .. .. . . .~:.~, _~ . _:,. .:~~:._e,_e.....~. .:.~ _~._~...:q~._. ~. .q. .. .. .:~ ~:..... , . .:. ~ ~ . _. .:. ._ . ._ ~_.,.~~q.:..:~.| .~e, ~_ ~ _ . . ~.:. . ~ ~. ~ ._~: . . ~_ _ . ..:.:~ ~:. ~ . . . . _._ ~..:~~:...:~..qq.: ..q,~~~ ...~~.. ..:.~ ...:...._~q: ~..~_e. ,_..._. . ..: ._ . .:~ ~:..... , . .:.~ ~ ._. .~:~ . ._ . ._ ~~~ .,~.._...:.~ _~.~.q_.. ...~..~. .:.~ q .. ._. . . . .:.~.,_e ~._.~.,.:.._~: ._~:~ q . .:.q .:e e q ._~: . .~ ... . ._ ..... , ..:.~ ._. .~:~ . . .:.._~:_e. ..'.:._ ~~. .~ .q:~ . .:.~ ., . , .q, e. ~. , . : ..:. , ..,... ..: ._ . e. ~_~ _..~e, . .:. ~ . ~ . _. . . :._ . _..,:~:. ._eq.q,~~~ ....:~._~:. .q._. _., .:. -._.:~ . . ~. _._ ,e ~ ~,~.- ~q:..~..~ .... ~..~..:.._ q:..|. ..:~ . .. .:.~:. . .. ...:~ ~ e . :.... ._ _. . .._.:~ . ~. . ~_e. q .,._~: . _- ~ , ~._.. ~ Fauna& Flora International (FFI) . ._.: _~:..._. ~.:.~..:~.~.q.....:. ~~ ~ ~. . ~ . .:.~_. ~, ~ . - ~q:.~ .. ~ . . . . :.._ ...~:_.,.~..~ ..~:.....,_.. _.,.:.q.:..|.~..:~.:.~:. _. . .._.:~ .,._~: . e .~e ~._ .. ._.:_~:..._. In Myanmar, just like many other parts of the world, electricity pricing is as much about politics as it is about economics. A Myanmar snub-nosed monkey. F F I / B A N C A / P R C F April 10-16, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 9 Myanmar Summary Myanmar Summary Mitsubishi Electric to Open Yangon Branch Shein Thu Aung M itsubishi Electric Corp said its Singapore- based subsidiary, Mit- subishi Electric Asia Pte Ltd, wIII esLubIIsI u bruncI omce In Yungon. The Japanese electronics gi- unL suId LIe new omce, wIIcI will start operations on April z, wIII coordInuLe MILsubIsII EIecLrIc`s eorLs Lo expund busI- ness in Myanmar by conducting market research, collecting in- formation and providing sup- port for infrastructure projects und IocuI dIsLrIbuLors. TIe omce, Ieuded by GeneruI Manager Kohji Maruyama, will be located at Union Business CenLre on NuL Muuk roud. Foreign investment for the development of infrastructure and special economic zones is accelerating in Myanmar due to democratisation and eco- nomIc reIorms In recenL yeurs. The countrys consumer market also has strong growth potential over LIe medIum Lo Iong Lerm. Mitsubishi Electric for many years in Myanmar has been selling products and services, mainly in the power sector, for infrastructure development, beginning with its supply of transformers for a hydroelectric power pIunL In 1q6o. The company also has been supplying residential and com- mercial air-conditioning sys- tems, home appliances includ- ing refrigerators and electric fans, factory-automation prod- ucts, elevators and escalators through distributors since the 1qqos. Mitsubishi Electric recorded suIes oI $;.q bIIIIon In LIe hs- cuI yeur ended MurcI 1, zo1. Mitsubishi Electric Corp ~ . ~ ._ , .-. ~:. ~._.. ~ . . , .. _e.._ Mitsubishi Electric Asia Pte Ltd ~:. q,~,_.~ ,..~.. ~ e . . ~_ .: . :.._ _e. ._~: . ._.:_~:..._. .,.- ~.~.q:,...,. _~._e.._ Mitsubishi ._ e. ,.~..~:. -_.. q~.,.._ ..,...:q~..:.~ .~_... . :.._ _e. ._~:. .q._. Phyu THit Lwin T he Ministry of Electric Power has invited open tenders for the design and supply of Galvanized Steel Towers for the Taung Twin Gyi - SIwe Tuung zokV doubIe circuit transmission line, it said In un unnouncemenL. The currency of the bid will be US dollar and quoting plan is C Yungon, LIe mInIsLry suId. The ministry said it has al- located funds to be used toward the cost of various projects, and it intends to apply a por- tion of the proceeds of these funds to eligible payments un- der LIe conLrucL. Applications should be sub- mitted to the ministrys Materi- al Planning department by 2pm on Muy 1. urLIer InIormuLIon can be obtained by phone at +q(o)6;-q1oz16 beLwee 1oum Lo :opm. The ministrys another sub- sidiary, Electricity Supply En- terprise, also invited tenders to purchase utility poles that will be used In zokV doubIe-cIrcuIL line across Taung Twin Gyi to SIwe Tuung. Tender forms went on sale MEP Calls Electricity Transmission Tower Tenders Irom MurcI 1 uL LIe MuLe- rial Planning department of LIe mInIsLry. TIe deudIIne Ior tender submission is by 12pm on Muy o. urLIer InIormu- tion can be obtained by phone uL +q(o)6;-q1ozoq, +q(o)6;- q1oz8z. .......~:.~,_~._:,. .~: ~._~..q.~: ,~ ~.-.:~ ~:...~~~ .....~~.._ ..~~:~|~.:.- .~.. ~_ ..:~ q, ~~ ~ ~ .|..'e . ._~: . .......~:.~,_~._:,.._.:_~:.. ._ .. . , .~. _...:~ :.q:~ .._~..,..: ~..q~,..'.:_e. ._~:.._. ~,_~._:,. ._.:_~:.. ._ .. . , .~. _...:~ . :.:. ~:. ~,_~._:,.~.~:~q .._. ...q.q:_:,. ... ,~ q~., .,.. ,:q~ .,:~.~ ~ . .. :.q._ _ e. ._ ~: . . q_ . . ~....~.q..|~ ,..,~~. e,.,.|~ +~,',~~~' . .~.e..._.,..._~:. .q._. ~, _~ ._:,-~_.:.. . , .. _e. ..: .. .. .:~ ~:.....~.q.. . , .. ._ . .~: ~ ._~ .. .q .~: . .:~ ~:. ...~.e.~~~._. ~.| ..'e:.._~:. .q._. April 10-16, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 10 Myanmar Summary Myunmur' s Inergy Sector: Inviting The World to Its Shore Vibhanshu Shekhar I n a bid to bolster the coun- Lry`s eorLs Lo open up Lo the world, Myanmar, on MurcI z6, InvILed 1 oII compu- nies from all over the world to operate in oil and gas explora- LIons In zo osIore bIocs o LIe coast of Myanmar in the Bay of Bengal, Moattama gulf and the TunInLIuryI BusIn. Ten of these are shallow water drilling projects, and the rest, deepwuLer drIIIIng projecLs. n AprII zo1, LIe governmenL oI Myunmur Iud ouLed LIe Len- der Ior o osIore bIocs und pre-upproved 6o proposuIs In JuIy zo1. The recent announcement comes at a critical time when the country is somewhat suc- cessfully delivering on its ASE- AN Chairmanship, gradually drifting towards federalism as a founding basis of Myanmar as a nation-state, and emerging as one of the important invest- ment destinations in Southeast AsIu. Signipconce of the announcement First, these concessions ex- pand the scope for major market players to enter Myanmars en- ergy secLor. Mujor InLernuLIonuI oil businesses Total, Royal Dutch Shell, Chevron, Unocal, ConocoPhillips, and Reliance Industries, among others will participate in exploration and producLIon operuLIons. WIIIe previous explorations and mar- keLIng were conhned prImurIIy to Asian oil companies, these new concessions involve major oII busInesses Irom LIe WesL. This will give a much-needed boost to Myanmars interna- tional attractiveness and its in- vesLmenL cIImuLe. Second, the consequent entry of major market players would bring in investment and tech- nology two components im- portant for the development of Myanmars negligible infra- sLrucLure und overuII economy. WILI LIe predIcLIon oI 6-; per cent growth in annual GDP in the short to medium term, such Inow oI D und udvunced technology may give a major boost to Myanmars economy, and the modernisation of its porL InIrusLrucLure. TIIs cun further help its developing the countrys coastal areas as busi- ness Iubs. n zo1 uIone, My- unmur receIved over $q bIIIIon investment, with a bulk of it owIng prImurIIy Irom AsIun businesses in real estate, con- struction and energy infrastruc- Lure. Third, this will give a major boost to both the upstream and downstream industries along LIe counLry`s cousLIIne. TIe de- velopment of industries along the coast may lead to the mod- ernisation of the southern cit- ies, further integrating Myan- mur wILI LIe gIobuIIsed worId. Fourth, this will accelerate LIe mucI -needed hnuncIuI and banking sector reforms in Myunmur. TIougI Myunmur`s hnuncIuI secLor Ius seen some improvements over the past two years, it still remains rudi- menLury und underequIpped. TIe hnuncIuI reguIuLory sysLem Loo needs Lo be deveIoped. n December zo1, Myunmur de- cided to allow foreign banks to set-up fully owned subsidiaries following the visit of Christine Lagarde, Managing Director, International Monetary Fund; and several Asian banks have since opened their representa- LIve omces In LIe counLry. TIe entry of global businesses has LempLed gIobuI hnunces und mIcrohnunce compunIes, sucI as MasterCard to enter the local murkeL. Finally, the entry of inter- national corporations and as- sociated economic reforms in- dicates the end of Myanmars international isolation, and helps its leaders project the country as a regular nation- sLuLe. TIe InvoIvemenL oI oII companies as a result of March announcement is going to boost Myanmars normalisation and speed up the process of the countrys continued integration wILI LIe InLernuLIonuI busIness. However, there is a danger of IocuIs noL benehLIng Irom LIIs deveIopmenL. Myunmur Ieurns from the Indonesian experi- ence in its resource-rich Aceh and West Papua, which experi- enced decades-long instability und Insurgency. Some oI My- anmars oil-rich areas namely the Rakhine and Tanintharyin basins have witnessed tur- buIence Ior u Iong LIme. Nuy- pyidaw has to ensure that the entry of big businesses in the troubled regions does not fuel the rise of resource nationalism undJor greuLer IocuI resenLmenL against the developmental poli- cIes. I ndi a i n Myanmar s ener gy sector Indias presence was estab- lished at beginning of this cen- tury with the state-owned Oil and Natural Gas Corporation (ONGC) entering the Myan- mur murkeL. SubsequenLIy, Lwo other public sector companies Oil India Limited (OIL)and Gas Authority of India Limited tried to enter the market some- wIuL unsuccessIuIIy. TIese InI- tial ventures did not go far, with both ONGC Videsh and GAIL losing the marketing rights to CIInese compunIes. ndIu mude ILs hrsL prIvuLe secLor enLry into Myanmars energy market when Essar Oil Limited bought exploration and production rights in two blocs in Rakhine provInce. India has since seen a contin- ued expansion of its foray into Myanmars energy market with the public and private sec- tor entering both as solo play- ers und In joInL venLures. TIe recent announcement has fur- ther ensconced Indias presence In Myunmur`s energy secLor. Among the Asian companies, four Indian companies OIL, Mercator, Oilmax, and Reliance Industries bagged exploration and production rights for four oII bIocs |M-q, M-1; und M-18 and Yetagun East Bloc (YEB)] o LIe guII oI MouLLumu In LIe souLIern penInsuIur Myunmur. Indias two public sector oil companies ONGC Videsh and OIL had bid for three blocs each, with the former winning none. Essur OII und ONGC Videsh have already been un- dertaking exploration opera- LIons In LIe counLry. AccordIng to the conditions put forth by Myanmar, these Indian com- panies will have to partner with the local Myanmar companies In LIeIr operuLIons. The new concessions may prove benehcIuI Lo ndIu Ior three reasons: All of them in- volve shallow water drilling and therefore are less expen- sIve und reIuLIveIy suIer. TIey are the most developed and ex- plored oil blocs in the country und Iuve been In use. Second, II India wins the marketing rights of gas from these blocs, oil and gas could be directly shipped to its southern ports, such as VIsIukIupuLnum und CIennuI. These blocs are close to Dawei deep seaport that Thailand is developing into a mega trans- port hub, thereby further in- tegrating Indian and ASEAN busInesses. TIIrd, ndIu couId avoid third-party negotiations problems that it faced in the case of the India-Bangladesh- Myunmur pIpeIIne. Conclusi on Myanmar is trying to bal- ance the presence of Western and Asian energy companies to widen the FDI sources and to generate a good image for LIe counLry In LIe WesL. SImuI- taneously, Naypyidaw has, by making it mandatory for the IoreIgn oII hrms Lo purLner wILI local businesses, ensured some level of boost to local capacity- buIIdIng. SucI u sLruLegy wouId introduce greater transparency and aid in the countrys liberali- suLIon process. Vibhanshu Shekhar is a visit- ing fellow at IPCS. _.,.:.._ ~_.:.~.:..:. . .~..q...~.~~.:..q,. ...:..q.~ ..~.|.e..:q~.: .q,~~~ .~. ' q~.,~ .:.. .e .~: ~. ., .~. . . ~ . . .e .~ . ~,. :q ~. .._. : ... ~ ~ ~. .. , .q, . .:~.:~ . q :.e .q.. . ~ ~ ..| . ~ ~ q :.e ~ ..e: . . . , ..:.~ ..: q ~ . q, ~.:~.~,.. .q,~.~..|. ~, . ~ e~..'.._. ~..|..~~.:. ~ ..~~ ~~ ..: ~....q~. ..~~.:._e._.. ~,q..:..~~ .:.. : .q,~ . .. . ~ ~ .:._e. ._ . ~~, ... -_..~ _.,.:~..q. ~...,..~~..|. ,~ ~~~ ~.|..'.e.._. _.,.:.~., _e ~:.e~_q:.~ ~:~,e ..:q~.:.q._~.,~ ._~: ....~ ~_.,._~_:.~.:.._ ~.,~.q..|..:~.,~ ~q .:. _. ._e. .. ~.q .~: ~:q ~ ._. q..._.....:.~~~ ~.q. ~.|. ....~ ~ ~. . ~_e. .q:~ q .: . _. _e. ._ .e. ~ . ~ .|..'. . .:. ._ ~: _ ._ ... . ~ ~ _ ~ . . :. q . . .~ . . , . .:.~ _., .: . . .~ ~_ . . . .q:~ q .:...._. A n d y
B u c h a n a n / p o o l/ R e u t e r s "The consequent entry of major market players would bring in investment and technology two components important for the development of Myanmars negligible infrastructure and overall economy." April 10-16, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 11 Myanmar Summary Myanmar Summary Ericsson Bags Five-Year Telenor Myanmar Contract Firm named network supplier and managed services provider Phyu Thit Lwin E rIcsson Ius bugged u hve- year contract for multiv- endor managed services to support Telenors nationwide rollout in Myanmar, the Swed- ish communications technology und servIces gIunL suId. Late last year, Telenor also awarded Ericsson with a frame agreement to supply radio-ac- cess network (RAN) and asso- cIuLed servIces Ior u sIgnIhcunL portion of Telenors network in LIe SouLIeusL AsIun counLry. Amid a slew of political and economic reforms, Myanmar in June last year awarded telecom- munications licences to Qatars Ooredoo and Norways Telenor, wIIIe LIe IIcences becume om- cIuIIy eecLIve In ebruury. Telenor said its network, com- prIsIng zG und G Lo provIde voice and data connectivity, is expecLed Lo cover qo percenL of the countrys population of more LIun 6o mIIIIon In hve yeurs. In preparation for the net- work deployment, Ericsson said local hiring will continue over the next few months, and that investments in training and development have taken place over recent months for those al- reudy on bourd. Ericsson said its multi-stand- ard network solution, which it claims minimises operators costs, will be used in the de- ployment, along with 2G and G equIpmenL LIuL cun be up- gruded Ior IuLure requIremenLs. Petter Furberg, CEO of Tel- enor Myanmar, said: This is a historic project for Myanmar and for Telenor, and strong partners like Ericsson will be crILIcuI Lo ILs success. Jan Wassenius, country man- ager of Ericsson Myanmar, said LIe hrm`s proven experIence in building networks in coun- tries with diverse geographical condILIons gIves IL LIe conh- dence that it can create a robust InIrusLrucLure Ior TeIenor. We hope the deployment of this telecommunications infra- structure will have an enormous positive impact on the economy of the country and on the lives oI ILs cILIzens, Ie suId. Our ... conLrucL wILI TeIenor in Myanmar is an important mIIesLone Ior us In LIe regIon. We will draw on our years of experience in managing multi- vendor network environments to ensure that network com- plexity is well managed for Tel- enor. n zo1z, ErIcsson commIs- sioned a study to assess the potential economic impact of mobile communications in My- unmur. TIe sLudy esLImuLes LIuL the total economic impact of the mobile sector in the country will be beLween 1. und q percenL oI GDP over LIe hrsL LIree yeurs uILer IIcenses ure Issued. The potential impact of mo- bile communications on em- pIoymenL wus uIso ussessed. It is estimated that the mobile communications industry will empIoy upproxImuLeIy 66,ooo full time employees in Myan- mur, wILI un uddILIonuI zq,ooo full time jobs estimated to be created in the wider economy as a result of interactions with mobIIe neLwork operuLors. ounded In 18;6, ErIcsson`s neL suIes In zo1 were $q.q bIIIIon. Ericsson ._ _.,.:.~~. Telenor - ~....~~.~~: _e .~ . e .q.~, ..: . . . , ..:. ..: q ~ _. .~ ~.:~ ~. _.. q, ~~~ |...~:..,...:~_ .~~ ~._.:.._~:. ... - .~ . e .q.,_ .._:. ~, ..: . . . , ._~ ._e. ..: Ericsson . ._.: _~:..._. .,.._....:...~ Telenor . Ericsson ~:. radio-access network (RAN) . .~..~,..: ..:.~:. .:~.q,~~~ frame agreement ~._. ....._.. .q.. . .. :..q._._. ._.: .. . .:.. ~~ _., .:. ._ ~ , .~ ~_._ _._ . q:.~: ..q~:_~ ..:._e. ..: ~:~:. Ooredoo . .,:.~.. Telenor ~~:. .~.e.q... .:.~ ......_.Ericsson ~ ,. - 2G . 3G ~,q~~~_. voice . data .~.~...:.~ .:~ . .... :.._ e ._.:_~:.. .. |.. . ~:~:.~~ . _., .: . ..q- ~ q:. . , .~ ~ ._ . .~ . . .. .:..q, ..: . , .:.._~: . . q._ . ~. .|~ , q~ .:.~:. _e, ~~ ..: q ~ . ~ _. . q:~ .:._ .~,_ . e .~: ~ _._ ~ .. . , . :.q. . ..:.~ .~.~....:q..._ _e.._~:. Ericsson . ._.:_~:.._.. ._~:......:.~~. .~,.... .. ~ . .:.~ ._ . ..: q ~ . ._~: . .q._. (I-R) Petter Furberg, CEU of TeIenor Myanmar, Hans Vestberg, Ericsson president and CEU, and ]an Wassenius, Ericsson country manager for Myanmar, pose for a photo. E r ic s s o n Buksh Foundation to Introduce Project Shein Thu Aung P ukIsLunI mIcrohnunce or- ganisation Buksh Foun- dation will represent its Lighting a million lives pro- ject in Myanmar in response to an invitation from the Myan- mar government and the Asian Development Bank (ADB), a sLuLemenL suId. The government of Myanmar and the Asian Development Bank have invited Buksh Foun- dation to Myanmar for intro- ducing the Lighting a million lives project and highlight the initiatives the Foundation has Luken Lo uecL duIIy IIIe ucLIvI- ties of the people living in urban and rural areas of Pakistan, it suId. Fiza Farhan, CEO of Buksh Foundation, will participate at the Myanmar International In- vestors Forum to highlight op- portunities and identify barriers to government representatives, InvesLors und donors, IL suId. This group works with the de- velopment sector to provide sus- tainable energy solutions and to overcome electricity shortages in Myunmur, IL udded. .|~. ~, ~....:.. ...~e ~._ . ~. . _e. ._ Buksh .e: ...q .._ _., .:. ~ Lighting a million lives . . ~ , .~ ~.~: ~_ .e: ..:q~.:..__e.~:e...~,. ._ _., .:~. .q. ~:q e _e .~ .~~ .q.~ ~ . e ~ ..'.~ .:.._~: _e. ._~: .. q._ ._., .:~. .q. ~:q e _e .~ .~~ .q.~ ~ ._ Buksh .e: ...q .~:. . . ~ , .~ ~.~: ~ _ .e: ..: q ~ . :.q, e ~ ..'. _. . _., .:. - _. _.. .~..~ ....:. ~ ., _~..: . .:.-~~.~ q ., . . . ~. ._..:.q.~~ ~ _e. ._ . April 10-16, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 12 Myanmar Summary Myanmar Summary Myanmar Summary From page ...(Public Finance) From page ...(Public Finance) a more strategic planning and budgeting process that directs resources to the highest priority areas, and through more cred- ible budget management system that delivers re- sources us InLended. It will help improve ac- counting and reporting of budget execution how public resources are spent and strengthen accountability for service deIIvery, LIe Iender suId. Improvements in tax compliance are expected to make more funds avail- ubIe Lo hnunce crILIcuI Iu- man and infrastructure services while maintain- Ing hscuI dIscIpIIne. Improved availability and management of pub- IIc hnunce duLu wIII IucIII- tate better analysis and policymaking and more strategic and transparent use of public funds, the WorId Bunk suId. TIe $o-mIIIIon DA credit is part of the World Bank Groups rejuvenat- ed and extensive involve- ment with the formerly- denounced Southeast Asian nation as almost all western sanctions got dropped IusL yeur. During his visit to My- anmar at the end of Jan- uury zo1q, LIe bunk`s President Jim Yong Kim announced plans by Iender Ior u $z bIIIIon multi-year development puckuge Ior Myunmur. This will include projects to help improve agricul- ture, access to energy and health services, and to provide support for other key development priori- LIes. Japan Gives $16m to Aid UN Activities Shein Thu Aung J apan has granted an uId oI 1.6 bIIIIon yen ($16 mIIIIon) Lo sup- port the activities of three UN ugencIes In Myunmur. OI LIe LoLuI uId, oo mII- lion yen will be used by the UN High Commissioner for Refugees (UNHCR) In ILs ucLIvILIes In conIcL- ridden areas, especially for helping the internally displaced people in north- ernmost Kachin and west- ern Rakhine states, state- run medIu unnounced. The UNHCR will also use the aid to address the issues related to citizen- sIIp und conIcL-IIL peo- ple in southeastern My- anmar in Mon, Kayin and Kayah states and Tanin- LIuyI regIon. The UN Childrens Fund (UNICEF) will use unoLIer oo mIIIIon yen Lo IeIp cIIIdren uecLed by conIcL In RukIIne and Kachin states to ac- cess life-saving services uguInsL vurIous dIseuses. The World Food Pro- gram (WFP) will use the remaining contribution to support life-saving food assistance to internally displaced people in Rakh- ine, Kachin and northern SIun sLuLes. ._. . . ~. ._.. ._ _e. .. ..q....|..~ ..: ..... ._ ~.:._._.~,..:.. :. ~ ._ . . . e, ~ ..... ._ _e. ._~: . ~|q ~, ~._.. ~ ~. : ~ ~e ~._ ._~ .. ._.:_~:.. ._ .e. . . ~ , .._ . . .e: -e:~..:~. ~. .:.. _:.q...,...:.~:._e ~.:._._ . ~, ..: . .:.~ . . . . ..: . . ..q .:._ ._. _e. ._ .~.:._._ . .:.~~ ~ _:.q.~q .~_ .. .:.~:. ._.~.._.._.._~. q. .:.~ ~.q.q:~._. ~.:~ ~~_e. ..._ _e. ._ . _., .:. q ~ ... ~e ~._.. .. -. . , ...: q ~ . .:.~.:~ ~._.q,~~~ .,.. e,.. ~ ... ' .e ~..q~,..'.: ~' .,.,~:.....~~~_~. q. ~ ~ _ .... ._~: . .q ._. ~. .| ~~ ~_ . : . . e,...,. ,~~ ~ ~... .~._.:..q:.e:. ._~ . , . (UNHCR) . ._ .~ .:. _e. . :..,..: -qe:.:.~ ~ . ._.. :..__e.._. Impact Economy Launches Myanmar Edition of Garment Industry Report Kyaw Min S witzerland-based invest- Ing und sLruLegy hrm Impact Economy has launched the Myanmar edi- tion of its Sustainable Apparel Value Chains: A Primer on In- dustry Transformation report, which analyses the competitive- ness and sustainability issues IucIng LIe $-LrIIIIon gIobuI Lex- LIIe und gurmenL IndusLry. Myanmars garment indus- Lry Is boomIng. L eurned more LIun $q1; mIIIIon In exporLs In zo1z und couId eusIIy empIoy more LIun 1oo,ooo peopIe by zo1, suId Dr MuxImIIIun Mur- tin, the author of the report and Iounder oI mpucL Economy. The Primer aims to inform the Burmese garment and tex- tile industry and its stakehold- ers working toward combining competitiveness with greater sustainability, the company suId In u sLuLemenL. A number of developments are currently transforming the industry such as the movement from slow to fast fashion, shift of production from advanced economies towards emerging markets and the increasing sup- porL Ior greuLer Lrunspurency. Garments are already the countrys most important manufactured export and nu- merous new factories are being buIIL. TIe revIvuI oI LIe IndusLry could yield important develop- ment dividends as the country modernIses, MurLIn udded. Despite progress, the indus- try is nevertheless less sus- tainable today than it has ever been: a point that was brought to global attention by the tragic zo1 Runu PIuzu uccIdenL In BungIudesI. WILI u Iong LrudI- tion in textile and garments and excellent craftsmanship, My- anmars garment cluster could weII gruduuLe beyond $6 bIIIIon in garment exports within a few yeurs. TIe reporL IdenLIhes u serIes of key levers that could help achieve this kind of industry transformation, including con- sidering the entire supply chain to foster resource productivity and transparency, upgrading industry infrastructure, im- provIng workIng condILIons. Myanmars enthusiasm to catch up with its neighbours is uL un uII-LIme IIgI. GeLLIng LIe job done and setting Myanmar on a path to becoming a leading sustainable apparel cluster is possIbIe, suId MurLIn. This shift will require trans- ferring best practices, collabo- ration between government, in- dustry associations, producers, buyers and civil society, and IuvIng LIe guLs Lo ucL. ..~:.,~._..~ q..._.... ..e:-e:..,._e.._ Impact Economy ._ Sustainable Apparel Value Chains: A Primer on Industry Transformation ..~.. ~ ~_.,.._~:. .q._. ~. .| .. ~. . ._ ~..q ~, ..'.: , q.e~..:~q._ ~.:...q: ._..~_.. . . , .~_. _~ .~ .,q._ e _. . .:.. .qq _ ~_ ~ e _e .. ~ . q. .:. ~ ._....~_e:....:._..._e. ._._.,.:.- ~_....,. . : e _e .~ .~~ .:._~: . ~~ . . . ~ ~_~..~...: ~..q ~,..'.: ~ .,..~:q.._. Workers at a garment factory in HIaing Tharyar IndustriaI Zone in the outskirts of Yangon. S o e
Z e y a
T u n / R e u t e r s Myanmar Prepares for Hosting 24 th ASEAN Summit in May Aye Myat A series of regional meet- ings have been held in Nay Pyi Taw last week in preparation for the upcom- ing 24 th ASEAN Summit set for Muy 8-11. TIe ASEAN OmcIuIs MeeL- ing, Joint Preparatory Meeting and the 1st Meeting of ASEAN Coordinating Council Working Group on ASEAN Communitys PosL-zo1 VIsIon were umong LIose. Topping the agenda during the discussions were ASEAN Community Building as well as ASEAN Communitys Post- zo1 VIsIon und ASEAN`s ex- LernuI reIuLIons. The upcoming summit will be followed by a related An- nual ASEAN Leadership Fo- rum slated for May 11 to May 12, where heads of states and government, entrepreneurs and experts will focus on regional challenges, ASEAN cooperation In zo1 und progress oI LIe re- gIon und LIe gIobe. Soon after taking up ASEAN chairmanship in the begin- nIng oI zo1q, Myunmur hrsL hosted ASEAN Foreign Minis- ters Meeting (Retreat) in Bagan in January under the theme Moving Forward in Unity to A Peaceful and Prosperous Com- munILy. At the meeting, the foreign ministers vowed to speed up eorLs In ASEAN CommunILy building and integration and move forward to realize ASEAN CommunILy In zo1. ASEAN ministers also touched on developing ASEAN VIsIon Ior posL zo1 us guIded by ASEAN leaders statement uL LIe zrd ASEAN summIL und exploring ways to strengthen ASEAN`s exLernuI reIuLIons. In March, an ASEAN Peoples Forum took place in Yangon under the theme Advancing ASEAN Peoples Solidarity To- ward Sustainable Peace, Devel- opment, Justice and Democra- LIzuLIon. The event attracted nearly ,ooo cIvII socIeLy represenLu- LIves Irom ucross LIe 1o ASEAN member countries as well as Timor-Leste to attend a range of programs, events and work- shops on a variety of ASEAN is- sues. ASEAN groups Brunei, Cam- bodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Sin- gupore, TIuIIund und VIeLnum. . , . ._ ~.~ ~ .... q:.~ .........:.~ _...._.. ... q~ ., . ~~q~ ., ~ _.. . ~ .. ._,_~.._.:~~:.e....~ . .. ... .. ~~ ~ _~ ~ _. . . .:. ._._e.._~:..q._. ~:. e ~. ..: .:..~ . .. ... . . . ...| ._~ ~ _. . .q..~ . .. . .. . . . ~:. e ~. . ~~, . - ~~ .~.,_.....~_..:. ~..'_ ASEAN Coordinating Council Working Group - .. .~ . .. ... .. .:.._ ..|~ . ._~: . . q._ .~:. e ..| ...: . . q:e q. ~ ._ ....~~q~ ., . ~ q~ ., ~ _.. . ~ ... :.._ _e. _.. _._,e.~..q~_~.~~.:. .,.~..,.q.:..~..~ ..:.. ....q:.,..'.~.:.~ ~. ~~:, . ~ .. ... .. :.._ _e. ._. April 10-16, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 13 Thailands Siam Cement Aims to Boost Output, Sales in ASEAN P|ons tc dcu||c copocity in Myonmor vit|in fvc ycors cj |cinnin prcducticn S iam Cement PCL, Thai- lands largest industrial conglomerate, aims to boost cement production and suIes In SouLIeusL AsIu Lo oseL a slowdown at home where political unrest has delayed spending on infrastructure projecLs. Siam Cement, which also pro- duces chemicals and paper, has been building cement factories in the fast-emerging economies of Cambodia, Indonesia and Myanmar where an infra- structure bonanza has pushed up demand for construction muLerIuIs. At home in Thailand, sales have slowed because of a decline in rebuilding demand uILer wIdespreud oodIng In zo11, und Iuve been exucerbuL- ed by the prospect of clashes between supporters of the prime minister and protesters wIo uIIege corrupLIon. Siam Cement projects do- mestic cement demand growth oI z percenL Lo percenL LIIs yeur, Irom ; percenL IusL yeur. That compares with projected annual growth across the As- sociation of Southeast Asian Nations (ASEAN) of 7 percent X|cttiyo Jittopcn ond Wi|ovon Pcnpito| Lo 8 percenL. If political crisis is pro- longed, Thai cement demand is likely to be negative, Chief Executive Kan Trakulhoon said uL LIe ReuLers ASEAN SummIL. ASEAN will be a growth platform for the world econ- omy. Ls uLLrucLIveness Ius Increused sIgnIhcunLIy uILer Myanmar was included, Kan suId uL LIe summIL. Myanmar is emerging from decades of military rule and isolating sanctions and has been looking to attract foreign investment since a quasi- cIvIIIun governmenL Look omce In zo11. TIIs yeur, LIe counLry Is cIuIrIng ASEAN Ior LIe hrsL LIme. Siam Cements ASEAN assets reucIed $z.z bIIIIon IusL yeur, or 16 percenL oI LIe LoLuI Irom percenL In zoo8. TIe compuny aims for ASEAN sales to reach o percenL Irom zo percenL by zo18, Kun suId. ASEAN is made up of Thai- land and the hosts of its three new factories, plus Brunei, Laos, Malaysia, the Philippines, SIngupore und VIeLnum. Siam Cement aims to begin production at the new factories over the next two years, raising overuII cupucILy by zo percenL from 24 million tonnes now, Kun suId. Myanmar Summary ..-~_~....~.~~:.. _~._e...: SiamCement PCL ._ ~.q .~: ~:q ~ .. ._. ~ . . . .:.. .q: ... .:.~ ~ ._. ....:.:.q, q_qe:._.. _._~.~ ..q..~_._._e.. .:.._~: ~._..~..:~~~.. ~,..:.~.~:~_.e:q, .. : .. ._~, _~:.,._ ~~ ~ .. ._..q:..q..:.~...,._~:. .q._. .:~.._..:.. .~..,..:. ~._...:q~.,._ Siam Cement ~.,_e ~..:..e:. ~ . , .q :.. _., .:. ~ ~ .. ._..~ , .:.~ ~_ .: . _. . ~. .| ...~ ~ .:.~ ~._.. ~..:~ ~~ .:.~_..:~.~~~ ..:~.. .q..._..:..~...:._. _..:. .~q._. .._ ~~~ ... ~ .q......_~._~..:..:._e..~ ._...,:~ _.,._~_..:~... ,..:.~..._~~~ .q: ... .:.._ . .. ..~ ..:_. ._e. _. . ~. .q. ~. .q., ~ .. _.. .:. ~_~:. ._ .~ .:.._~: ._. .q: .. ..:.~ ...~...._. e... ~ _._~...._.~e.~:. .: q:..,.. , q:..,.~ ~.~~.:._e SiamCement . .,.,.:._.. .,.._..~ q:..,._e.._~:. .q._. OCBC Eyes Expansion in Greater China Over Another ASEAN Market Sccs C|ino os drivin Asion octivity; o|rcody cntrcnc|cd in Scut|cost Asio O versea-Chinese Banking Corp Ltd (OCBC) aims to ex- pand in Greater China which it sees as the engine of Asian economic activity, rather than in another market in South- east Asia where Singapores second-biggest lender is already well enLrencIed. OCBC, No.z Lo DBS Group HoIdIngs Ld by usseLs, Is LryIng to expand outside its core markets of Singapore, Malaysia and ndonesIu, wIIcI LogeLIer uccounLed Ior qo percenL oI LIe bunk`s pre-Lux eurnIngs IusL yeur. In China, OCBC wants to raise its stake in Bank of Ningbo to the maximum permitted, and in Hong Kong, OCBC is in talks to buy family-owned Wing Hang Bank Ltd for what could be a record umounL Ior LIe SInguporeun pIuyer. From our perspective, I think we would be more interested to go into the Greater China market rather go into another ASEAN market at the present time, Chief Executive Samuel Tsien said at LIe ReuLers ASEAN SummIL. ASEAN, or the Association of Southeast Asian Nations, is made up of OCBCs three core markets plus Brunei, Cambodia, Laos, Myunmur, LIe PIIIIppInes, TIuIIund und VIeLnum. Chinas economic activity is really driving the economic activi- ties of Asia right now plus the fact that Chinese companies desire Lo move osIore Ius uIso creuLed uddILIonuI opporLunILIes Ior us, TsIen suId uL LIe summIL. Reuters Soccd Az|or ond Boc|c| Armstrcn Myanmar Summary Oversea-Chinese Banking Corp Ltd (OCBC) ._ Greater China ...~ ~ ~ . . , ..:.. ..:q~.:.q, q_qe:._.. e....~~.: ~.q.~:~:qq ~_.:....~ ~ .:.~ . . .~: .. , _.. ~:q...:..q...:q~.- ~.~ ~~..~_e. OCBC . ,_. :.._ . OCBC ._ . ~:. . The company then plans to double capacity in Indonesia und Myunmur wILIIn hve yeurs of beginning production, Kan suId. Siam Cement is a century oId und o percenL owned by the Thai royal familys Crown Property Bureau investment urm. The company is ASEANs second-largest cement maker by capacity after Swiss Holcim Ltd, and is the regions big- gest producer of downstream cIemIcuIs Ior pIusLIcs. Reuters -.~e~_~...~..,._~._e. _.. ~.q.~:~:q...~~~ ..,. ~.~.:.,q:e:._.._e. ._. OCBC ._ .,.._.. ~ ~.~:~.,......:q. ~.qq.....|.- ~ q:..,. ~ qq ... ..: . ~:. . ....q :. .. ~.,.q:.~~. ~.~ ...~~_~..:.-_.....~~.:._ ~ . . , ..:.~ . ..: q ~ . :. q, _~.....,._. Ufce workers pass a Iogo of Uverseas-Chinese Banking Corp Itd (UCBC) at the company`s headquarters in Singapore. E d g a r
S u / R e u t e r s A worker cIeans a cement truck at a ready mixed concrete pIant of Siam Cement in Nonthaburi province, on the outskirts of Bangkok. K e r e k
W o n g s a / R e u t e r s April 10-16, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 14 Tensions Put Thailand on Sidelines of ASEAN Investment Plans C ontinuing political uncertainty, de- railed infrastructure plans and sliding domes- tic demand are making big Thai companies look more keenly at investing elsewhere in the neigh- bourhood rather than in Southeast Asias second- IurgesL economy. At the Reuters ASEAN Summit, two of the countrys largest compa- nies, Siam Cement PCL and Charoen Pokphand (CP) Foods PCL, outlined growth strategies that are now hrmIy Iocused ouL- sIde LIeIr Iome counLry. We are investing more in ASEAN and less in Thailand, where we focus on high value-added products, Siam Cement chief executive Kan Tra- kuIIoon suId. CP Foods told the sum- mIL Iow IL Is LurgeLIng ; percent of company reve- nue to come from foreign operations within the nexL hve yeurs, up Irom 6 percenL currenLIy. Growth in emerging countries will surpass the domestic market, said chief executive Adirek Sripratak, noting his company plans to expand in nearby Philippines and VIeLnum. On Friday, there was another piece of gloomy data on the Thai econ- omy, as factory output fell for the 11th straight month in February, by q.q percenL compured with a Reuters poll IorecusL Ior u . percenL drop. For months, the outlook for growth has worsened even LIougI omcIuIs Iope exports - which account Ior ubouL 6o percenL oI the economy will rise and lift the economy this yeur. The central bank recent- Iy cuL ILs zo1q economIc growLI IorecusL Lo z.; percent, compared with q.8 pcL IusL OcLober, jusL before anti-government protesters took to the streets to seek the re- moval of Prime Minister X|cttiyo Jittopcn ond Orot|oi Sririn YIngIuck SIInuwuLru. A decision earlier this month by the Constitu- tional Court to annul the resuIL oI LIe eb. z gen- eral election has plunged the country into political limbo, raising fears that the economy will struggle to pick up speed anytime soon. If political crisis is prolonged, Thai cement demand is likely to be negative, said Siam Ce- ments Kan, who runs the countrys largest indus- LrIuI congIomeruLe. Pricey political overhang That political uncer- tainty has been weighing on foreigners who invest In TIuI securILIes. A March 14 research note from Nomura showed foreigners have been net sellers of Thai equities this year, with net sales oI $8; mIIIIon. ndo- nesia and Philippines by contrast have seen net purchases by foreigners oI $1.o1 bIIIIon und $1;1 million, respectively, so Iur In zo1q. If I look across the region, I would say there are better prospects than Thailand right now until we get some sort of resolution to the political overhang that remains there, Andrew Swan, head of Asian equities at the worlds biggest money manager Black- Rock nc, suId. Political unrest could also threaten the coun- trys credit rating, which all three major rating agencies currently have on a stable rating of BBB+JBuu1, In LIe In- vesLmenL grude cuLegory. If ongoing political uncertainty continues to drag, the country might be on a watch list, Ng Kheng Siang, head of AsIu PucIhc hxed Income at State Street Global Advisors, which has just over $z LrIIIIon In usseLs under management, told LIe summIL. Some corporates in South- east Asia are generally overlooking Thailand in favour of the faster-growing markets of Myanmar Summary Myanmar and Cambodia, us weII us IurLIer uheId In AsIu. Singapores Oversea- Chinese Banking Corp, Southeast Asias second largest lender, said that despite a fall in valua- tions in Thailand, it has little appetite to make any acquisitions there at presenL. Culturally the Greater China market appeals to us a bit more than the Thai market, said the lenders chief executive Samuel Tsien, who is cur- rently trying to buy Hong Kongs Wing Hang Bank Ld. The chief executive of PT Astra Interna- tional, Indonesias largest listed company by market capitalisation, said it an- ticipates that Southeast Asias largest economy could overtake Thailand as the regions biggest auto market within two yeurs. TIuIIund Is uIso u major production base for international auto manufacturers, but Indo- nesia is hoping to sup- pIunL IL In comIng yeurs. Reduced investment pledges Thailands troubles are hurting its investment numbers. n LIe hrsL Lwo monLIs oI zo1q, pIedges from foreign investors were q percenL Iower than a year earlier and those from Japanese InvesLors were down 6 percenL. FDI this year may be Iess LIun $8 bIIIIon, LIe average long-term rate, because manufactur- ing FDI will disappear quite a bit as investors are waiting to assess the situation, said Pimon- wan Mahujchariya- wong, an economist at the Kasikorn Research CenLer In Bungkok. However, some portfolio investors still see oppor- LunILIes. TIe $1z bIIIIon Templeton Asian Growth Fund, run by emerging- markets investor Mark Mobius, increased its allocation for Thailand to z;.1z percenL In ebru- ury, up Irom zq.; percenL at the start of the year, according to data from Ipper. Thats a bet economists beIIeve couId sLIII puy o in the long-term, with Thailands proximity to Myanmar, Vietnam, Laos und CumbodIu. Its integration into manufacturing supply chains around the region suggesLs LIuL D ows will remain positive in the medium term, said Benjamin Shatil, an economist at JPMorgan In SIngupore. Reuters We are investing more in ASEAN and less in Thailand, where we focus on high value-added products. ~.q .~: ~:q- . ~ e... :. .q.~ ~:._~ .. _e. ._ . .._ ..q..~_._.. .:.~ .~ _~ .,q.. ~~ . .~~.,_e ~._..~..:~ ~~..~,..:...:q~q, ~~ ~ .. : ..._~, _~:.,.. _._~.~e.~:..:._. ~...:._~~~ . .- ~.~_~..:.~.,_e ..~ ~_.:.~.,... ..:.~ q..._...q, .. ..q.,_~._~:. .q._. ~:. e . . ..~ . .. ... . . ~ .. -~_~ .. .~ . ~ _~ .. . . _e. ..: SiamCement PCL . Charoen Pokphand (CP) Foods PCL ~. ,.~ ~.,_e e.~.| _._~._ .e ~ _._ .~ .: . . , . e_e.~.~~..e:-e:.:.~ ..:q~.:..__e.._~:. ~.e:._.:_~:..._...~ ~.,_e .. ~ ~:. e ..:.~ ..q..._...., ._~:. SiamCement . ~...:~q:q.. Kan Trakulhoon ~ ._.:_~:.. ._.CP Foods .._. ,. ~ ~.,_e e. .~ q ~ ~ . ~ - ~. ' q:..,.~~ _._ .. . , ...: q ~ . .:.. qq _. ._e. _. . .:._ |.. . ~~ . ~.~~.- q:..,. ~ .q:~q.:.q, ._. .. . ~ :...: q ~ .,._~: . ~ ~. .|.~ . .. ... .. _ ._.: _~:..._. Anti-government protesters react as a portrait of their sIain comrade is pIaced under a stage in the group`s encampment near the Covernment House in Bangkok. Cunmen opened re on a group of Thai anti-government protesters driving away from a Bangkok raIIy Iast week, kiIIing one, wounding four and raising tension in a poIiticaI crisis that has gripped the country for months. Continuing poIiticaI uncertainty, deraiIed infrastructure pIans and sIiding domestic demand are making big Thai companies Iook more keenIy at investing eIsewhere in the neighbourhood rather than in Southeast Asia`s second Iargest economy. D a m ir
S a g o lj/ R e u t e r s April 10-16, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 15 Myanmar Summary ADB Sees Steady Growth for Developing Asia D eveloping Asia will extend its steady eco- nomIc growLI In zo1q as higher demand from recovering advanced economies will be dampened somewhat by moder- ating growth in China, a new Asian Develop- ment Bank (ADB) reporL suId. ADB`s ugsIIp annual economic publication, Asian Development Out- Iook zo1q (ADO), released last week, forecasts developing Asia will achieve gross domestic product (GDP) growLI oI 6.z percenL In zo1q, und 6.q percenL In zo1. TIe regIon grew 6.1 percenL In zo1. Developing Asia is successfully navi- gating a challeng- ing global economic landscape and is well positioned to grow steadily over the next two years, said ADB Presi- denL TukeIIko Nukuo. Risks to the outlook have eased compared to the recent past, and pol- icy makers in the region cun munuge LIem. AL the same time, countries should continue to make every eorL Lo pursue sound macroeconomic policies and needed sLrucLuruI reIorms. The Manila-based lender said demand for Asias output is expected to grow as the recovery in the major industrial economies gains mo- menLum. CombIned GDP growth in the United States, the euro area, and Japan is expected to pick up Lo 1.q percenL In zo1q Irom 1 percenL In zo1 before strengthening IurLIer Lo z.z percenL In zo1, uccordIng Lo ADB. The improvement in demand, ADB said, will be oseL somewIuL by moderating growth in China where the economy sIowed Lo ;.; percenL In zo1 on ImpucLs Irom tightened credit growth, pared industrial overca- pacity, deepening local government debt, rising wages, currency apprecia- tion, and the continuing shift in the governments development priori- Wai Linn Kyaw ties away from quantity Lowurd quuIILy. TIese factors persist and China growth is forecast to slow Lo ;. percenL In zo1q und ;.q percenL In zo1, ADB suId. The lender said while risks to the outlook have eased, three areas war- runL cIose monILorIng. IrsL, II eorLs In CIInu to curb credit expansion are too abrupt and exces- sively undermine growth, a deeper slowdown could drag down prospects for ILs Lrude purLners. Sec- ond, data on the recovery in the major industrial economies have been mixed; pointing to the possibility that demand for the regions goods from these countries may be softer than envis- uged. And LIIrd, u IurLIer sIock Lo gIobuI hnuncIuI markets from changes in US monetary policy can- noL be ruIed ouL. Across the subregions, East Asia will see its growLI Lrend uLLen us growth moderates in CIInu. EusL AsIu grew by 6.; percenL In zo1, u sIIgIL upLIck Irom zo1z, and is expected to main- LuIn LIuL ruLe InLo zo1q und zo1. TIe sIower growLI In CIInu wIII o- set upswings in the newly industrialised economies of the Republic of Korea; Hong Kong, China; and TuIpeI, CIInu. As poIIcIes LIgILen Lo curb InuLIon, growth in Mongolia will moderuLe In zo1q und remain broadly stable in zo1. nuLIon in East Asia hit a 4-year low of z.q percenL In zo1 und wIII remain man- ugeubIe uL z. percenL In zo1q und z.q percenL In zo1. Although growth in South Asia is inching up, it remained the slowest growing sub- region, with GDP expanding by q.8 percenL In zo1. Mod- eration in India had an outsized impact on the subregional uveruge. GrowLI is forecast to Improve Lo . percenL In zo1q und .8 percenL In zo1, wILI projected re- covery in India Lo . percenL und 6.o per- cent, assuming the implementation of long-delayed structural reIorms. Growth patterns in Southeast Asia will be dominated by country IucLors. SubregIonuI GDP deceIeruLed Lo .o percenL In zo1 us soIL exporL mur- keLs und sIowdowns uecL- ed Indonesia, Thailand, und MuIuysIu. GrowLI in Indonesia, the biggest of these economies, was dampened by policies the government adopted to subdue InuLIon uILer IL sIurpIy ruIsed IueI prIces. Subregional growth is forecast to be similar in zo1q, us guIns Irom beLLer exporL murkeLs ure oseL by moderating domestic demund. TIe ouLIook Improves Lo .q percenL In zo1, wILI growLI pIckIng up In ndonesIu uILer Inu- tion ebbs, and Thailands economy rebounding if po- IILIcuI dIsrupLIon recedes. e _e .~ .~~ . ~:q ~.,_e ~~, ...~ ...:..q.e_e. ~.~~._ ~__..:_e .~ .~ ~ .~~ . . ._ _e. ._~: . ~:q e _e .~ .~~ .q.~ - ..~....~..~q .q._. ~:q e _e .~ .~~ .q., _. .~ ~~, ..~..~:. .,.._ q~ .~ .~ ~ ~ _., . _. . e _e .~.~~.~:q~.,_e ~~, . . . ~ . . ..| ._._ ~ . ~ ~ , ~, e . ' ... ~ q:. .,. ~~, ...~ ' ... q:..,.. ~~ ...~ ' ... , q:..,.~ e_e. ~ .~~ .:._ e ., . , .. ... :.._.e_e..~:q~.,_e ~. :. .. q:. .. :..q.~, .~ .~:.~.q.. .~_.,_.. .:._ . . . . .~: ~~ .._ . ~_ _ . . :_e e _e .~ .~~ ._ ~.,~:..~: ._q .,._~: . ~:qe_e.~.~~.q.~. ~_ Takehiko Nakao ~ ._.:_~:..._. .,...:~. , ~:.~ .,.:.q.q._ ~._.~., .:...: .|..:_. . . ~|..q.. . .:.~.,_e._. ~.~:... ...,.._..._~:. ~.., ~_ .. :. ~:q ...q . .:. ~.,_e ~e_.,..: ...:. .q...'...:.. .~.._ e ._ .. .,. _._. ._.: .. . .:. ~ ~.~:..._~......: q~.:..._~:. ,.~._.: _~:..._. .,.:~._..~ ~:qe_e. ~ .~~ .q.~ . ~:q - ~ ~,.:.~.,_e ~~:._~. . .:. . .. :..q._., ._.~: . .,.:._~~~ ~e.~:. ~.~~.:.__e.._. ~.. q~, .q:..... ., . ~. ....|._._~.~~, ~,e.~.~~.:._~~~ ~:q - ~ ~ , .:.~~ ~ ~e . ~:..._.~~.:...__e. ._~: . , .~.._.:._. A D B April 10-16, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 16 Myanmar Summary City Students Hope to Launch Site for Slow News Te Charta will wait two weeks after a major news event before publishing a story in order to present a fuller picture Alastair Reid F rustrated with the breakneck-pace of 24-hour news, two hnuI yeur sLudenLs Irom Londons City University are launching a project to sIow down LIe news. The Charta, currently in the funding stage but planned for launch in September, will take two weeks to fully research and analyse the impact of a news event instead of rushing to publish a story before all the facts are known. Its supposed to allow us to give events time to unfold and avoid any pos- sible inaccuracies that you get while you are, for instance, following a liveblog or Twitter feed around an event, Caro- lina Are, The Chartas co- founder and editor, told JournuIIsm.co.uk. Last weeks reports of a pIune crusI o LIe cousL of Gran Canaria which turned out to be a tug boat and initial reports on the disappearance of IgIL MH;o ure recenL examples of when some news organisations have jumped the gun on re- porLIng. We are aiming our website at people that are actually looking for the set view on a certain event, or coverage that is dehnILe, ruLIer LIun jusL whats happening now, conLInued Are. Breaking news is still important when accurate, she said, but The Charta will look to contextualise events and help people learn from them, to see what it means to their fu- Lure und LIeIr pusL. One of our slogans is that Twitter asks whats happening and we ask how, why and what is the future impact of the situation, co-founder and managing director Charles-douard van de PuL LoId JournuIIsm. co.uk, wIIcI cunnoL be done within an hour of an evenL IuppenIng. You need the time to really investigate whats happening, why its hap- pening, how it happened and what it means for the IuLure. A por ous paywall The Charta will be fund- ed through a subscription modeI, uL ; per yeur or 6.z u monLI, wIIcI van de Put compared to the Financial Times me- Lered-puywuII. Once established, read- ers will be invited to set up an account on The Charta where they will be able to view a limited number of articles before subscrib- Ing Ior IurLIer uccess. One thing weve identi- hed us u probIem wILI LIe media today is that every- thing is free and therefore the stories they have to do are the stories that attract as many people as possi- bIe, suId vun de PuL. Instead, The Chartas co-founders hope to at- tract partners instead of readers, said Are, who can give constant feedback on the editorial process, sug- gest stories they would like to see covered or help investigate a topic where IeusIbIe. We are trying to make independence one of our biggest goals, she said, and being completely in- dependent and complete- ly unbiased is impossible, but we are going to strive for open-mindedness and taking two weeks before publishing an article is going to be a great help Lowurds LIuL. Van de Put was keen to stress how The Charta will dif- fer from weekly publications like the Economist or Business Week in rounding up recent events Ior unuIysIs. AI- though they may tread a similar line in coverage, he believes The Charta will be able to pub- lish new stories on a daily busIs once esLubIIsIed. They are weekly but they talk about the week that just happened, he suId. So II IL`s pubIIsIed on a Friday then what happened on a Thursday wIII be rusIed. With us there would be new stories every day, he explained, but with two weeks-worth of research beIInd LIem. A prototype of the web- site includes stories on changes to The Defama- LIon AcL oI zo1, sex ud- diction in the digital age, the reporting of global humanitarian crises and a curated section to show- case the best journalism Irom oLIer sources. We felt quite tired while reading the news, Are suId. We were con- stantly ambushed by up- dates and sometimes we couldnt make sense of wIuL wus goIng on. So we decided that we wunLed Lo cIunge LIuL. The Kickstarter cam- paign to crowdfund The CIurLu ends on AprII z6. Journalism.co.uk Twitter asks whats hap- pening, and we ask how, why and what is the future impact of the situation , ,:q ~~ . ~ ..'.,._ _~:._e~ .~ ..:.. : ~._~: . ~q..~.~~.~_._.. .q ._ ~~ ~ ., ., - City University . .,:~.... .~: ..:.. . .._ _~:._e~ .~..:.~:. ~q,..:. :. ..q,~~~ ~.~.~..~ _....,._~:. .q._. ~. .|~. ~. _e. ._ The Charta ~:. e..~q~. , ~ . ._~..:~ . . _.q, ~. ~. _.:q.,.....: ._ . .~~:.~ .~..: q~.:.q,..:.._~:. .q ._. ~. .|~. ~. ~:. ~.~: ~_ .e: q, ~~ ~ ~.~ ~.~ .:.~:.. .~ .. q q. .~ .~_e. ~ .~. .:.._~: _e. ..'.:._ ~~ ..~ .q:~ ..:..q: ..~.,. ... .. .:. .:.~ . . .~ _~:_.. . .:..__e.._~:.._. .q ._.e..~q_e..~.,._ ~_ e. ~.~ .:. ~:. .~ . .e: _..~ ~~...:._ ~.~~.~.:.~:. .e:_.. q,~~~ _~.....~..._e. ._ . _~:._e~.~..:.~., _e ~.q..|.,._e._.. The Charta ~.,_e .~.:.~:. ~. .|~_e. ~.~ .:.. . e . q, , .~ -~,:~ . ~~ ~ ~:.~ . ~ .~ , _. . q, _e.. _~:.._. .q._. Twitter ~.,_e :_e.., .,_ .e ..._ ., .. .:q ..: ._. ..~~.,_e ~..| ~._.~.,~....: ._._e. .,_. ~e ._~: _e. .,_ . . ~. .|~._ .~.,._ ~: ~,:~.~.q:~.:q.. . ._ .... , ..:.-~.~ ~.~ .:.~.|.q..q, _~.....:. ._ _e. _. . ~. ,:q ~~ . ~. .|~.~ .:.~:. . q q, ._e. . ._~: . TheCharta - . ...| . ~_.:.. ~e.~:_e. ..: Charles-douard van de Put ~ J ournalism.co.uk . ._.:_~:.. ._ .~_e. ~.~ ~. . ~:. :_e. .~ .,.,_ . :._~:_e..~.,_. ._ ._e..~..,_.. ~,:~ ~ ._ . q ._ ,_ .. ._ ~.~ .:.~:. ., ... .. .:q, ~~ ~ ~. , . ~. ._~: . , . ~ ._.:_~:..._. The Charta, initiated by two students fed up with the breakneck speed of 24-hour news, wiII take two weeks to fuIIy research and anaIyse the impact of a news event instead of rushing to pubIish a story before aII the facts are known. J o e
S k ip p e r / R e u t e r s April 10-16, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 17 Myanmar Summary Myanmar Summary G20 Summits Have Limited Relevance Ior Murkets: ICB Little short-term market impact from G20 since 2007; Media attention on G20 probably not justifed David Milliken R egular meetings of the worlds leaders and central bank- ers have little short-term ImpucL on hnuncIuI mur- kets, despite extensive media coverage, accord- ing to research published by the European Central Bunk. ECB researchers looked at how the price of shares and bonds changed after meetings of the Group of zo (Gzo) beLween No- vember zoo; und Sep- Lember zo1 - u LIme when the body was at the IeurL oI gIobuI eorLs Lo lessen the impact of the hnuncIuI crIsIs. The big picture arising from our analysis is that eecLs oI Gzo summILs are small, short-lived, non-systematic and non- robust, the study con- cIudes. EvIdence LIuL Gzo meeLIngs eused hnuncIuI market jitters - for exam- ple, by causing share pric- es to rise and bond prices in advanced economies to IuII - wus weuk. (This) suggests that the information and decision conLenL oI Gzo summILs has been of limited imme- diate relevance for market participants, or already IncorporuLed In prIces. The result contrasted with other, similar re- search into European Un- ion summits, US Federal Reserve meetings and a predecessor oI LIe Gzo, the G7 all of which had a cIeur ImpucL on murkeLs. The research only fo- cused on the short-term ImpucL oI Gzo meeLIngs, and was not able to judge LIe eecL oI Ionger-Lerm hnuncIuI reIorms seL In train at the meetings, or LIe benehLs guIned Irom policymakers getting to know eucI oLIer beLLer. Such advantages would muke Gzo summILs pos- sibly still valuable, but it would probably not justify the media attention that they sometimes receive, LIe reseurcIers noLed. TIe nexL Gzo guLIerIng oI hnunce mInIsLers und central bank governors will take place in Wash- IngLon on AprII 1o, on LIe fringes of a meeting of the International Monetary und. Reuters C2U Ieaders at Iast year`s C2U summit. R e u t e r s A job seeker (C) taIks to an exhibitor at the CoIorado HospitaI As- sociation heaIth care career fair in Benver. R e u t e r s / R ic k
W ilk in g Iuding Winter to Lift US Payrolls Lucia Mutikani T he US economy likely created jobs at the fastest pace in four months in March as it shifted into a higher gear after being held back by u bruLuIIy coId wInLer. Employers are expected Lo Iuve udded zoo,ooo new jobs to their payrolls last month after adding 1;,ooo In ebruury, uc- cording to a Reuters sur- vey oI economIsLs. TIe jobless rate likely dipped one-tenth of a percent- age point, returning to the hve-yeur Iow oI 6.6 per- cenL reucIed In Junuury. Its looking like the economy is in the process of reaccelerating after a very severe winter, said Robert Dye, chief econo- mist at Comerica in Dal- Ius. An abnormally cold and snowy winter slammed the economy at the end oI zo1 und LIe begIn- nIng oI LIIs yeur. GrowLI was further undercut by eorLs by busInesses Lo trim bloated inventories, LIe expIruLIon oI benehLs for the long-term unem- ployed and cuts to food sLumps. But data ranging from manufacturing and ser- vices sector activity to automobile sales have signaled strength in the economy us LIe hrsL quur- Ler ended. Should March hir- ing meet expectations, it would take job growth buck neur LIe zoq,ooo monthly average that pre- vuIIed LIrougI LIe hrsL 11 monLIs oI zo1, und Ieuve the economy close to re- gaining the positions lost durIng LIe recessIon. A quickened pace of hir- ing could lead investors to bring forward expecta- tions for when the Federal Reserve will move over- night interest rates up Irom neur zero. CurrenLIy, bets are centered around LIe mIddIe oI nexL yeur. Fed Chair Janet Yellen has argued the central bank needs to maintain a highly accommodative monetary policy for some time to come to eliminate slack in the labour mar- keL. She has pointed to an unusually large number of long-term unemployed, wIo uccounL Ior ; per- cenL oI LIe 1o. mIIIIon ouL oI work. Muny oLIer AmerIcuns cun onIy hnd ~. : . . ...| ...: .:. . -e ~ ~ _.:.. . , .~ . . _._~._ .~ . .. ... .. .:. ._~: . ._~....~ ~ .:.~..' ~ ~:.~ .~ .q:~ . ~,_. e q .:._ _e. ._~: . .q:. -e~. ...~.~...: . .~.,.. ~..~q . q._ . .q:.-e~. ..~., _.. .:.~.,_e Group of 20 (G20) .~ . .. ... .. ~_ . . .,:~ q ee:.... , ..:.. . ....:.. .... , ..:.._ ~~ . . . . ~ :.. ~~, ... .~~:.~_~:.~ ._ . ._.: .. . ._ . ._ ~.~ ~ . .. .. .:. _~._~: . .q._. ~. .| ~. , ~:.~~ . _:.q.~:.-..~..~ .q:~ . .:.~ ~~~ . . . ..: .|.q, ~~ ~ ._. _~ ... . ._~q:~ .q:.-e~.: ._. ~.q..|.._. ..~- . .. .. .:. .:.. ~ ..'.: ._~.~.: G20 .~. .. . .. . . .:. - ~~ ..~ .q:~ .. : ,_..|._.. ~:.~ .~ .q:~ . .:q .. .,. ~~._ ..q .. . .:. ._ . .q._~:. ..~...~:~e. .:.~ ....:.._. ~..|..~.,...:.~ . : G20 .~ . .. ... .. .:.- ~:.~ ~~ ..~ .q:~ . ~. . ~_ .~ .:~:, . ~ . ._. ~..q~,-...:..q..: _., ._ ~ .~~ .~: .. , .:. _ . ..~ .~ ~. . ~~ e, ~ .. ~ ~_., . .. , .:.~. q.q._....:.q:.~:.~ . .. :..q.~. .. .:.q . ..: ._.e.~.| _.,._e_e.~. ~~ .:._ ~.,~:.. .q:~ q .:. _. _e. ._ . ~. . ~~ ~.. ..| . part-time work or have gIven up LIe job IunL. The labour market is moving in the right di- rection but not as quickly as the Fed would like it, said Ryan Sweet, a senior economist at Moodys An- alytics in West Chester, PennsyIvunIu. Reuters ~~,~~~ ~..e,~..:. .q,..,.q.:.~ ..:.,. :. _ ~_ . . .e.e: ~| q .~ ~. . ~~ ..| . ~,~~~ ~ e,~.. . ._~: ., ~ ~:. . . . :..q.._:q .:.-.. .: .,.....:.~q .q ._. ..:.q:. .~: . , _. .. , ~...:..q..:~q,~e, _e _., ._ .~: .. , .:._ ~ ._.~., ~. q. ~ q .,._. April 10-16, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 18 David Mayes T he recently announced proposals in the new UK budget set the stage for a complete reform of the pension Iuws. Muny expuLs workIng or retiring in Myanmar are very IIkeIy Lo be uecLed by some oI LIe cIunges. TIe consuILuLIon perIod couId see some herce de- bate, but if the budget is signed into law as is then there will be some drastic changes to not only the UK pension market but IIkeIy LIe osIore one us weII. or dehned conLrIbuLIons pensions, also called money purchase schemes, the gov- ernment is considering allow- ing the scheme members to Iuve compIeLe exIbIIILy In drawdown once they reach re- LIremenL uge. TIIs essenLIuIIy means they could cash in their entire pension if they want and InsLeud oI puyIng u percenL unauthorised payment charge they would be taxed at what- ever their marginal tax rate Iuppens Lo be LIuL yeur. TIIs would speed up the collection of revenue for HMRC as many are likely to encash their pensions upon reucIIng reLIremenL uge. The worry of course is that people will go out and blow it all and then need to be sup- porLed by LIe sLuLe. TIIs wus LIe UK Pension Reforms Announced logic behind forcing pensioners to take an annuity to secure an income for life, but with interest rates remaining low for so long many pensioners have been getting a horrible deal on their unnuILIes. TIIs budgeL wouId represenL essenLIuIIy u 18o de- gree turn around from the gov- ernmenL`s prevIous sLunce. n- deed the HMRC has been very aggressive in preventing those wIo Iuve LrunsIerred osIore to a QROPS to continue to fol- low the UK drawdown guide- IInes bused o GAD ruLes. The budget also called for a consultation on the death tax, which taxes any remaining Iump sum IeIL In u pensIon uL percent before it can be passed on Lo benehcIurIes. Muny In the industry worry that the op- tion to transfer a pension out- side of the estate, such as into a QROPS, may soon be a thing oI LIe pusL. L Is sLIII Loo eurIy to know for sure which way the government will go, but the window to remove a pension from the UK tax net may be get- ting ready to close, at least in Lerms oI HT. However, IL muy uIso noL be Iur o LIuL one cun LrunsIer u pensIon osIore, und cash in the entire amount at a much lower tax rate than in the UK. We wIII Iuve Lo wuIL und see if QROPS trustees interpret the governments change of stance as meaning that they also can uIIow LIe sume exIbIIILy. Those who have valuable de- hned benehLs scIemes or de- hned conLrIbuLIon scIemes wIIcI uLLrucL sIgnIhcunL Lux II- abilities may be well advised to at least look into transferring osIore now us LIe opLIon muy noL be uround Ior mucI Ionger. However, if you have a smaller pension pot, the best advice go- ing forward may in fact be to leave it in the UK and cash it in over a few years while you are in a low tax bracket in retire- menL. TIe upper IImIL on LrIvI- ality payments, where a pension is allowed to be paid out com- pletely in a lump sum because it is too small to provide a reason- able income, would also be in- creused. A LoLuI oI oK GBP In u maximum of three pensions, up Lo 1oK per pensIon, wouId quuI- IIy Ior LIe LrIvIuIILy puymenLs. David Mayes MBA provides wealth management servic- es to expatriates throughout Southecst Asic, jocusin on Myanmar Summary Myanmar Summary Pedestrians pass an advertisement featuring a one penny piece in Wandsworth west Iondon. The recentIy announced propos- aIs in the new UK budget set the stage for a compIete reform of the pension Iaws. L u k e
M a c G r e g o r / R e u t e r s Workers unIoad rice imported from Vietnam from a ship docked at a port in ManiIa. UK Pension Transfers. He can be reached at david.m@fara- mond.com. Faramond UK is regulated by the FCA and pro- vides advice on pensions and taxation. Philippines Seeks Bids from Exporters in Rice Deal, Including Myanmar Erik dela Cruz T he Philippines is seeking bids from exporters in at least seven countries In ILs Lender Lo buy 8oo,ooo tonnes of rice, a government of- hcIuI suId IusL week. The Southeast nation, which typically imports rice from Vi- etnam and Thailand, is looking to bolster stockpiles for the sec- ond half of the year when little of the staple grain is harvested domesLIcuIIy. We have invited all rice- exporting countries, even the United States, said National Food Authority (NFA) Deputy Administrator Ludovico Ja- rina, adding that he hoped this would boost the chances of get- LIng u good deuI. Rice exporters in Myanmar, Pakistan and India may also bid for each or all of the four zoo,ooo-Lonne IoLs, JurInu suId. Its possible that there will be muILIpIe wInners. We wIII choose the lowest price, he suId. Vinafood 2, Vietnams top rice exporter, has taken bid docu- ments and is looking to sup- ply the entire volume, while Thailands government has ex- pressed interest in participating In LIe AprII 1 open Lender, Ju- rInu suId. Vinafood 2 and the embassies of Thailand and Cambodia in Manila sent representatives to a pre-bidding conference held at un NA omce on TIursduy. AIso presenL were omcIuIs from international commodi- ties traders and grain exporters such as Louis Dreyfus, South Koreas Daewoo International Corp and Vietnams Gentraco Corp Thailands Asia Golden Rice Co Ltd and Thai Hua Co Ld were LIere us weII. Bids will be for the supply of 1-percenL broken, Iong gruIn well-milled rice in US dollars per Lonne, on u CJDDU busIs. The Philippines, one of the worlds biggest rice buyers, is also looking to stabilise local re- tail prices of the grain, which hit a four-month high in February umId LIInnIng IocuI suppIIes. The NFA is seeking delivery oI LIe 8oo,ooo Lonnes In Iour shipments between May and August, with an approved budg- eL oI 1;.z bIIIIon pesos ($8 mIIIIon). Its purchases could provide support to rice export prices in Asia, with Thai rice prices steadily falling on rising supply as farmers harvest their second crop. Rice prices in Vietnam were stable last week, with the har- vesL oI u mujor crop peukIng. Reuters R o m e o
R a n o c o / R e u t e r s e....~.,_e .,.~q. ~,., ~~,~~~ ~,~ ~ee.:. q,~~~ ~,_......|..,.. ~ .~,~...:.. ..:~_ .~.:.qqq, _~.....,._~:. .q ._. e....~.,_e -e~,.. ..~..,.:.~ ~....q _.. _._~.~ .~...~~:.,_. .|.._~~~ .~e..~~~~~ ., . .. : . ..: .. .:.~ _.. . . :. ._..._e.._. ..~~.,_e ., ~ . ._ . .:.~:.. .~ e ~ ..'. _. . ~..q~,..| e~..'.._~:. Ludovico J arina ~ ._.:_~:..._. ._ ~:... . ~. , ~:.~~ . e .~-~ ~ ~. _ . . . :.~., _e......:._._.._.:....:. ~.|~~..~.q:~.q.__e.._. _ ., .:. ~ ~. . . . ~ .,_ ~ ..:~_.:...~._...,..:. . .e ~ ~_ . ..:.e . .:.~.,_e ~..|_._.._.:....:.._~: ,. ~~..'.~.q:~..:.q.:.ee ~._.~.,q._.......~.._ ~.,~:.~~..~_._..: :.. :.~:.~_ . .~, .. ... . .:.eeq.,._....:._. ~ ~~.q..~~:....~_e..~ .~.q...._..e.~-.. .. .~ ~ ~ .:.~_ ._ ... .~ ~ .:.~.|~._.:.~..:.~.~_. .:q...__e.._. ....:..: ~.:.~..~:.q__~:.:q... _...:.._q..._.....:.._e. _.. ..e._~.,~ ~..|. ._~...:~.:~.,.:._.:.._~., ~:.~q.:.__e.._. e.~. ~..| ....:..:.~:...~~. . .~. q .~_ . ~ e . ~ . . _..... e.~~.,_e _._..:.- ~~.._...:...:.,..q. ~~ ~ . . .q.~. ..q ~ .:.~ _. .:. . :. .. .,_. .. . ..:.:.~:.~. . , ~_ .~. .~q . ~ e _. .e . . ._ ~.~:..~: .. , . :. . ., . ~ . .._.. _e, .~ ... . . ~. .q~., _e~..|..:.~:. ..:.q:~... :.q._~~~~q.~.,._e~ eq,._...:.q_.._e.._. April 10-16, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 19 Myanmar Summary AYA Taps Local Travellers with Visa Multicurrency Cards Phyu Thit Lwin A yeyarwady Bank (AYA Bank) and Visa has launched multicurrency prepaid travel cards for corpo- rate and individual travellers goIng ubroud, LIe hrms un- nounced. The AYA World Travel Visa card, which can hold up to three currencies (Euro, US dollar, Singaporean dollar), will allow cardholders to pay for purchas- es ubroud, LIe bunk suId. It can be used to make pur- chases at all merchants, either online or in-store, where Visa is accepted, besides having im- mediate cash access at ATMs worIdwIde, AYA Bunk udded. The bank will issue two types of cards corporate and indi- vIduuI. AYA Bunk Is LIe hrsL bunk oI- fering the corporate card solu- tion in the electronic payments sector, Phyo Aung, managing dIrecLor oI AYA Bunk suId. Now that the country is open- ing up, more local businesses are entering the global market and travel and entertainment is the one of the largest business expenses in most organisations and it continues to grow, he udded. Phyo Aung said the AYA cor- porate card can assist busi- nesses with better control over LIeIr busIness expenses. L wIII reduce the time spent authoris- Ing und LruckIng LrunsucLIons. He said with individual cards, cardholders can travel safely and conveniently without wor- rying to carry a large amount of noLes wIen LIey LruveI. An additional feature of the new card is Visa PayWave con- tactless payment technology, which allows the cardholder to make contactless payments where Visa PayWave is accept- ed. Somboon Krobteeranon, Visa country manager, Myanmar and Thailand, said these cards will provide both corporates and individual cardholders with greater security and conveni- ence in the ways they can pay wIen ubroud. We look forward to continu- ing to work with Ayeyarwady Bank to introduce additional products that will support the deveIopmenL oI Myunmur`s h- nuncIuI InIrusLrucLure, Ie suId. As of March, Ayeyarwady Bunk Iud 68 bruncIes counLry- wide and its non-bank custom- er deposILs reucIed over K8oo bIIIIon ($81.6 mIIIIon). -q:~~ ~ (AYA Bank) . Visa ~._ ._.:.. .q..:..:._. .:. ~. ._...q, ~~ ~ AYAWorld Travel Card .:.~ ..:q~.:. .__e.._~:. ~_.,._~_:... e.~. _._.~ ~.._..._ .......~~.:.._ _.,.:.- _:.q..,.e_e.~.~~.~ .~ ~ .~: .~. . _e. .:._ _e. _. . _., .: .. .~:..q.q..:.. _._~. .,..:.~.,_e ~.:...~~ ~ . ...... .:._ ~. ._...:.. ..q, ~~ ~ .:~ . . _.._ ., ... ~ ._ . ...... . q:._eq ..~ .:.._._e. ._ .e. . ...| ...: q ~ .~ -q:~~~. .~:.q~~~ . ~. .. .~~ ~. .~.:.. . . ~ ~ _., .... :.._ _e. ._~: .._ . .q._. AYA World Travel Visa ~~ ~.,_e ~~.....:.~~~ . . ~.._...:.... ..e_~_ . ~ .q._~:.._. .q._. ~_. e .~~ _e e , ~..q ~, ..'.:. . ~:. . ._~..,. . .. . . ~~ ~ ~.._...__e.._. ~~ ~. ._.. .:.~.,_e _._ .~ ~e e . .:.~~ ~ ~. .|~~ _e . ..... ..__e... e.~~~:. .~. . .. . ._ ._ ._ .,q:~ .. ~ , . .. _e. .. .~ ..:.. _e. .. ~e e ~:. ......_ .. . . :.. ._ _ e. ._~: .-q:~~ ~..,.,..|,~ ~: ._e...:~._.:_~:..._. Visa credit cards. J a s o n
R e e d / R e u t e r s Myanmar Summary Indian Firm to Conduct Mining Work in Chin Stute Kyaw Min A n Indian company is of- fering to conduct mining work in two townships of Falam and Tunzang in My- anmars Chin State, state-run medIu reporLed. Karam Chang Thapar (KCT) company is likely to carry out such mineral exploration work as on gold, chromites, nickel and limestone, said the New IgIL oI Myunmur. There are nine townships in Chin except one that can pro- duce chromite, nickel, iron, copper, aluminum, limestone, couI, oII und murbIe. A number of other private companies have also sought permission to do such mining work in the state, the report udded. Following the reforms, Myan- mar has been encouraging lo- cal and foreign investments in mIneruI expIoruLIon. oreIgn hrms IuvIng beIng engaged in mineral exploration ~.e~.~~..._ _.,.:. . ._._ ,e q e.. .. ~ , .~ _. ,e .:. ~ .~ ~ .. . , ..:.~ ..: q ~ q, ~ ~ . ~ ~ .:..,._~: . . q._ . e. KaramChang Thapar (KCT) ~.~~.,_e .q .,.~ ,~e in Myanmar including com- panies from Australia, China, France, Japan Malaysia, Sin- gapore, South Korea, Thailand, LIe UnILed SLuLes und RussIu. OmcIuI sLuLIsLIcs sIow LIuL existing foreign contracted in- vestment in Myanmars min- Ing secLor umounLed Lo $z.q billion in 11 projects as of the end of January, accounting for 6.6 percenL oI LIe LoLuI IoreIgn investment, making it the third largest investment sector after eIecLrIc power und oII und gus. . ..~:~ ~ ~ . .:~~ . ~ .. _ ..:.~ q :.e . _.. . . :.. ._~: . .q._. . . ~~ . ~ ~.~: .:..:.~.,_e ._. .~~...,..:.~:. .. _._ ,e ~ ~.~: ~_ .e: ..: q ~ . :.q, ~~ ~ . . , .. _..~ .:. qqq, _~.....,._~:. .q._. S o e
Z e y a
T u n / R e u t e r s April 10-16, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 20 Seeking Tech Fixes for Aid Projects, Myanmar Hold First Hackathon Low phone penetration and spotty Internet access have held back Myanmar, previously called Burma, but foreign investment and aid could unlock its fedgling tech sector Casey Hynes I ts a Saturday after- noon and Ye Lin Aung has been holed up in un omce uII nIgIL. He und a group of friends have been working through the night on a mobile app that would help farmers Lo proLecL LIeIr crops. They are competing In Myunmur`s hrsL-ever IuckuLIon, u q8-Iour contest to create tech- based solutions for some of the countrys pressing deveIopmenL cIuIIenges. Ye Lin Aung, a software engineer, and the other members of team NilBug have carved out a work- space among the other Iuckers. TIeIr cIusLer of tables is partitioned by whiteboards that are scrawled with notes on the apps functions and reminders for the devel- opers. OLIer groups Iuve similar set-ups, and a ready supply of Red Bull and Nescaf instant cof- Iee. It would be a familiar scene in San Francisco or New York. BuL noL so My- anmar, a country where a slim segment of the population has access to phones and the vast ma- jority of people have nev- er been onIIne. After decades of military rule and isolation, Myan- mar has begun opening up to international aid and InvesLmenL. Ls LeIecoms industry lags far behind neighbors like Thailand and India: mobile phone penetration is roughly ten percent; even fewer have uccess Lo LIe nLerneL. Despite this low con- nectivity, Myanmars tech communILy Is growIng. Tech events such as this hackathon, and broader collaboration between coders and do-gooders, may yield technology so- lutions for development und IumunILurIun Issues. The potential to do re- ally good work, to use tech to solve real problems, is so clear, said David Mad- den, founder of Code for Change Myanmar, which helped organize last weeks hackathon in Myanmars muIn cILy, Yungon. Apps for ai d pr oj ects At the hackathon kick- o uL LIe IeudquurLers oI Qatari telecom Ooredoo, one of the sponsors, rep- resentatives of Myanmar- based NGOs laid out the challenges for the team: Lo come up wILI u LecI hx Ior u specIhc Lusk. TIese ranged from how to reach sex workers to educate LIem ubouL HVJADS Lo crowdsourcing election monitoring for next years presIdenLIuI voLe. Eighty-three people joined the hackathon and spIIL InLo 1; Leums. AL LIe end, a panel of four judg- es gave each team three minutes to present their upp or websILe. NilBug won the com- petition with an app that would allow farmers to look up which pesticides were best to use on their crops, and to swap tips with other farmers on pesL prevenLIon. For participants like Ye Lin Aung, the hackathon allowed him to meet tech professionals who work in the start-up scenes in Myanmar and in places such as Australia and Sin- gupore. L`s very excILIng und cIuIIengIng, Ie suys. While last weeks hack- uLIon wus LIe hrsL oI ILs kind, Myanmar has host- ed other donor-funded tech events, including a BarCamp meet-up in Yangon in February that drew more LIun ,ooo purLIcIpunLs. TIe prevI- ous month, a US embas- sy-supported TechCamp brought together more LIun 1o cIvII socIeLy uc- tivists for training in tech skIIIs. BurCump evenLs have also been held in Mandalay, Myanmars second IurgesL cILy. Theres so much energy and so much passion and when you create the right environment, these young people in Myanmar just grab it with both hands, Mudden suId. No panacea for pover ty While enthusiasts say that widespread tech lit- eracy and access could lead to improvements In Myunmur`s edgIIng democratic institutions, its no panacea for a country torn by ethnic- bused conIcLs, grIndIng rural poverty, and po- litical divisions that no smurLpIone upp cun hx. Twenty-six percent of the population lives below the poverty line, according to LIe UN Omce Ior ProjecL ServIces. SLurved Ior dec- ades of investment, public infrastructure is decrepit und overwIeImed. A spokesman from the US embassy in Yangon said digital literacy could supporL eorLs In Myun- mar toward better gov- ernance and economic growLI. L couId uIso boI- ster education by allowing schools to connect with counterparts in other countries, and improve communication with groups In ruruI ureus. Phil Morle, CEO of Pol- lenizer, a Australia-based company that helps start- ups in Asia and Australia, believes Myanmar is ripe for a digital revolution because of latent inter- est combined with the on switch about to be ticked wILI LIe nLerneL. New phone li cences The on switch for Myanmar is the promise oI uordubIe mobIIe Le- IepIony. usL yeur, LIe government issued two cellular phone licenses to Ooredoo and Telenor, a NorwegIun LeIecom hrm. Both are now building na- tional cellular networks wILI u gouI oI 8o percenL mobile phone penetration by zo1. I think theres an ex- traordinary shift about to Iuppen, MorIe suId. For now, tech develop- ers struggle with slow Internet speeds as they work to build new prod- ucLs. Ooredoo wIII begIn rolling out services in mId-zo1q, uccordIng Lo Lorna McPherson, chief murkeLIng omcer uL Oore- doo Myunmur. TeIenor has announced plans to launch mobile services by the third quarter of this yeur. BoLI compunIes suy LIuL wILIIn hve yeurs LIe vast majority of people should have access to cell servIces. Myo Htet Aung, an android developer who participated in the hack- athon, sums up the atti- tude of many in the tech communILy. Iove Lo share my knowledge in LIe communILy IIke LIIs... (but) we still need to do a IoL oI ImprovemenL. The Christian Science Monitor Myanmar Summary ._~:.... . . .:.~~ . _._. ._.: .. . .:.~ ..: q ~ . _. . ~_~. .. .~ _._. ._.: .. ..:.~ ..:q~.._ _.,.: . ~ .. .. . hackathon ~:. ._~:.... ~ _.. . ~ .. ._.. _.,.:.-.~q_~.~ .,q..:e _e .~ .~~ .q.~~ ~ . , ..'.~ .:.~ ._eq.q, ~~ ~ ,:q..|. , ,:q_~:~.,q ._ ,_.._:~._._.._eq. . ~ . :.~:. _. . e, ~ .. _.. . . _~._ . ~ q . ..~: . , .-. e . .~. . ~ ._ mobile app ~..~ _~.... e, ~ .. _~_. . ~. .|e, ~ .. ._ .e ..:. .:. ~:. , . ~ - .~:~.....:.~:. ~:~e q, ~~ ~ ~.:~ ~~ _e. e e q ._~: .._ . . q._ . Participants at the hackathon. O o r e d o o
M y a n m a r April 10-16, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 21 Myanmar Summary Myanmar Summary From page ...(IMF) From page ...(IMF) Philippines URC Earmarks $30m for Myanmar Plant Aye Myat F ilipino food and bev- erage manufacturer Universal Robina Corp (URC) is to spend ubouL $o mIIIIon Lo buIId a production plant in My- unmur LIIs yeur. Michael P Liwanag, vice-president for corpo- rate planning and investor relations, said the com- pany, a unit of Gokongwei conglomerate JG Sum- mit Inc, is proceeding with plant construction, according to Philippines medIu reporLs. We Iuve uIreudy h- nalised the contract with LIe buIIder. LIInk In LIe coming months, we will start construction, Liwa- nag said after the Invest- menL ASEAN zo1q Con- Ierence. ConsLrucLIon will take a minimum of 12 monLIs. L reuIIy depends on how fast the builder Is. He said the facility will initially produce bis- cuits like Magic Flakes and Cream-O, as well as chips under the Jack N JIII brund. TIe compuny Ius seL usIde $o-mIIIIon investment for Myanmar, Iwunug suId. The investment will be sourced from URCs $zoo-mIIIIon budgeL Ior its capital expenditures LIIs yeur, Ie udded. Singupore's WPG Iyes Ixtensive Myanmar F&B Presence Phyu Thit Lwin S ingapore-based con- glomerate WPG Group has opened three fast food outlets in Yangon in a bid to tap the rising demand of fast foods from the recently-opened Southeast Asian countrys emergIng mIddIe cIuss. WPG Group, an invest- ment company with its business interests rang- ing from property, ho- tels, travel to limousine services and wealth man- agement, forayed into Myanmar with its three fast food brands The Big Fryer, Food Talk and NoodIe KIng. All the three outlets are located in AKK Mall, Thingangyun township, In Yungon. The company said it sees potential for huge expansion due the cur- rent reforms and continu- ous growth in Myanmars economy, and that it has already invested heavily into the F&B business in LIe counLry. The company aims to present fast and delicious food suitable for all ages in a comfortable and vibrant environment, at reason- able prices, the company suId In u sLuLemenL. As part of the F&B de- velopment, WPG said it will open its fourth outlet in Peoples Park by April und ILs hILI by AugusL In Ahlone township in Yan- gon. Further in the pipeline, WPG is set to open three more outlets in Bago re- gion with the develop- ment of its new retail mall LIere, IL suId. By zo16, LIe compuny aims to expand its fast Iood busIness Lo zo ouL- lets across Myanmar, WPG suId. By creating more jobs and businesses, WPG hopes to play a part in contributing to Myan- mars economy and also its increasing middle cIuss, IL suId. .~:..~._..~ ...:. .q.~ ~:.. _~ ._e. ..: WPG Group ._ q, ~ , ~ ~. .:.. .. ..:~.:.~.:.q: .. ._ . . .. ~:. e . . . ._~: . . q_. . ~.q .~: ~:q ~e ~ .~.._e...: _.,.:. ._ ._~:.......:.~~. . . e _e .~ .~~ .:.. . .~ ~, ..:. ..q. :._ . . . ~ .~~ .:._ ~~ ~ ~. .:.. .. ._.:...:~~,.:. ~e. ~:.. :._ . _. ~~ .:. ._ . WPG Group ._ ~._.._. . . , . e ~e . . , ..:. .q . .:...,. ~...,.~:.~, ..:..:.~.q._ ..,. .:.~ ._ . ..: q ~ q, . ~ ~ .:..,._ q..._....~.~ ~. . _e.._~: .. q._ . e .. . . - .:...:~ ~ , . ~.e:e.~:~..._ ..,._e...: Universal Robina Corp (URC) ._ _.,.:.~ e...~~. .:...:~ ~ , . ~.e: e.~: ~..q,.~,~..~ ~_ ..:~ . :.q, ~~ ~ ~..q ~, ..'.: .,. ,~ ~,.~ ~. ._. .:.._e .q._. .~: . q ~ . . , .~. ~. .q....q..._.....~. .q.~_~~ ~ . ~ e~ __e. . Michael P Liwanag u Gokongwei conglomerate J G Summit Inc -e,.~.. _e...: URC ~.~~.,_e .~ , ~_ ..:~ . ~ _.. . . :. . q, _~ ... ...: q ~ .,_. _e. ._~:. ._.:_~:..._. ..~ ~.,_e .~,~_..:~. ~~~ ..:~...q...,. ..:q~q, ~_...~..: ~ _ . ~ qq . _. ._e. ._~: . .: ._..:.~~. ..:~... ~ .~ ..: q ~ . :.. ._ e .._..._~:. Liwanag ~._.:_~:.. ._ . for dialogue between the Iund sLu und u member country on its economic poIIcIes. IMF said growth of credit to the private sec- tor is projected to mod- erate from current high levels but remain rapid at uround o percenL. L ex- pecLs LIe hscuI dehcIL In Yzo1J1q Lo be broudIy in line with the budget LurgeL oI percenL oI GDP, buL IuII Lo q. per- cenL In Yzo1qJ1, us u resuIL oI one-o revenues from telecommunica- tions licences, which were uwurded eurIIer LIIs yeur. Myanmar current re- cent economic reforms IncIude udopLIng u ouL- ing exchange rate and removing exchange re- strictions; establishing an autonomous central bunk; und sIgnIhcunLIy increasing spending on IeuILI und educuLIon. However, InuLIon Is expecLed Lo exceed 6 per- cenL by end Yzo1J1q and remain elevated in Yzo1qJ1. IMF said risks to the outlook arise largely from limited macroeconomic management capacity and thin international re- serve cusIIons. nuLIon remuIns eIe- vated and there are pres- sures from rapid money and credit growth, kyat depreciation and possi- bIe eIecLrIcILy prIce IIkes. International reserves are still low and vulnerable to shocks, the lender said In u sLuLemenL. IMF projected the exter- nuI currenL uccounL dehcIL to widen further to about percenL oI GDP In LIIs perIod. As u resuIL, LIe Central Bank of Myanmar (CBM)s accumulation of international reserves durIng Yzo1J1q Ius been slower than project- ed, but is hoped pick up in Yzo1qJ1 us IoreIgn dI- rect investment and other Inows ouLweIgI LIe cur- renL uccounL dehcIL. IMF praised Myanmar on achieving some quan- titative and structural benchmarks including building the CBMs re- serves, maintaining an upproprIuLe hscuI dehcIL, liberalising the foreign exchange market, and building monetary and hscuI poIIcy LooIs und In- sLILuLIons. Capacity constraints moderated achievements in some areas but pro- gress continues to be mude, M suId. ._~.q . . ~e . ._.:_~:.. . _. _.,.:.- ~~ ~~,_:.q...~....|. _._~.~~,e_e.~.~~ ..,..: ., q:..,.q._.. ~~,~~, _:.q...~ . q:..,.~~.~~.: q,..:.,.:... ~~, ~~ _:.q...~ . q:. . , .~ ~ .~~ .:._ e ._ . ., . , . :. ._ . . . ~~_. .... ..... ~ .~~ . , .. :._ .~.e ~ .~ ~. . .q:~ q . . ._ e.,.,. :.._. A food and beverage production Iine. R ic h a r d
C la r k WPC Croup's outIets in Yangon. N a y
C h i S t u d io April 10-16, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 22 Myanmar Summary Cotting OH Oor Nose to Spite Oor Iuce in Myunmur Stanley Weiss O ne of them has helped reforest environmentally threatened regions and donated money to assist children with Down syn- drome. A porLIon oI every ticket his airline sells goes to social welfare organisa- LIons. And wIen CycIone Nargis devastated Myan- mur In zoo8, IIs Ioun- dation contributed more LIun $8 mIIIIon Lo rebuIId schools, hospitals, and monusLerIes. The other has footed the bill for school fees and medical expenses for the families of Myanmars poIILIcuI prIsoners. He Is actively recruiting doc- tors from other nations to improve the health care system here, and over- sees the only national institution the Myan- mar football league in which ethnic minorities participate on an equal footing with ethnic Bur- muns. And uL u LIme wIen corruption threatens to derail this countrys nas- cent democracy, he is the IIgIesL-prohIe busIness leader to have opened his books to an internation- ally-respected accounting hrm und LIen personuIIy presented the full audit to United States Ambassa- dor Derek MILcIeII. Which is not to say that Tay Za and Zaw Zaw, two of the most successful businessmen in Myan- mur, ure Boy ScouLs. Over the past two decades, the head of the Htoo Group und LIe q6-yeur-oId cIuIr- man of the Max Myanmar Group built their vast con- glomerates of companies stretching from banking to hotels to construction by thriving on connec- tions they developed with a regime notorious for hu- mun rIgILs ubuses. TIose contacts landed the two on the US governments Myanmar sanctions list, which bans American in- dividuals and companies from doing business with any friends of the old re- gIme. But when the generals traded their uniforms for cIvIIIun cIoLIes In zo1o, the US government lifted sanctions on many mili- tary leaders but kept the blacklist in place for people like Tay Za and Zuw Zuw. L`s u IILLIe IIke letting Al Capone go scot- free while continuing to punIsI IIs uccounLunL. This is the farce that US sanctions on Myanmar Iuve become. Zuw Zuw, a man who has created jobs Ior more LIun 11,ooo people and, in journal- ist Erika Kinetzs estima- tion, is widely regarded as among the cleanest of the bunch is on the list, along with Tay Za and ubouL 1oo oLIer busIness Ieuders. BuL us KIneLz und reporter Matthew Pen- nington have written, LIe IIsL Is IuII oI gups. L Ieuves o, umong oLIers: a top ministers son and suspected arms dealer who supplied weapons to North Korea; the wife, children and grandson of brutal former military leader Than Shwe, and the sons of a former hard- line leader accused of at- tacking opposition leader Aung San Suu Kyi, killing a number of her support- ers; and sons of top lead- ers who have amassed tens of millions of dollars In LIe IIIeguI LImber Lrude. Meanwhile, Tay Za consIdered Burmu`s hrsL billionaire, despite the sanctions notes that while the US continues to punish local business leaders, theyve taken no ucLIon ... uguInsL CIevron and Total, the two promi- nent Western energy companies that are mak- ing billions of dollars an- nually from their natural gus projecL In Myunmur. Indeed, Chevron and To- LuI were jusL oered con- cessIons Lo expIore o LIe cousL oI Myunmur. A sanctions list that punishes cronies but re- moves thugs makes no sense, morally or eco- nomIcuIIy. L perpeLu- ates a false standard and begs the question: what does the US really want to achieve in Myanmar? If the answer is, to cut o our nose Lo spILe our face, then mission ac- compIIsIed. All it does is put US busInesses uL u sIgnIhcunL disadvantage, while driv- ing investment to other counLrIes. TIe EU und Australia which togeth- er had over a thousand in- dividuals and companies on their sanctions lists lifted their sanctions beLween zo1z und zo1. Asia has no restrictions on or qualms about work- ing with anyone in Myan- mur. MeunwIIIe, US busI- nesses are barred from working with some of the very people who are most central to the success of LIe Myunmur economy. The American Cham- bers of Commerce here is asking why these sanc- tions are being kept in place, a local venture cupILuIIsL LeIIs me. TIey wunL cIurIhcuLIon. TIey raise this issue with every State Department visitor LIuL comes Lo Myunmur. The EU has no list and Accor Hotels has part- nered wILI Zuw Zuw. A major reason, as usuuI, Is Congress. TIe US is a prisoner of a congressional prison, a European ambassador suys Lo me. A senIor Io- cal businessman adds, The Obama administra- LIon Iud Lo hgIL LIe reur guard of people support- ing sanctions in the US and couldnt just turn on the switch so they said We are open for busi- ness but not with the bad guys. eL`s noL gIve up our AmerIcun prIncIpIes.` One anonymous senior SLuLe DepurLmenL omcIuI quoted by the AP last year oers u Iess encourugIng ruLIonuIe. TIe suncLIon list doesnt allow for re- dempLIon, Ie suId. L is designed to hold peo- ple accountable for past wrongs, regardless of whatever good work they muy be doIng now. WIIIe its true that accountabil- ity is important, a sanc- tions list that leaks like u sIeve und oers scuL- tershot accountability is no way for the US to en- courage a democratic and prosperous Myunmur. A UN omcIuI expIuIns exactly how this selec- tively punitive black- list impedes such good work. TIe US cume Lo me Lo work on u Lrumck- ing project and needed u proposuI, Ie LeIIs me. They liked it, but once their lawyers reviewed it they rejected it and said you cant train cronies und mIIILury. suId, 'LIInk ubouL wIuL you`re suyIng. They are key to stopping LrumckIng. TIey cume back and said, OK for the training but we cant pay Ior LIeIr IuncIes.` Now, dont call it training, I call it seminars and they al- Iow LIuL. Its time for the US to follow the EUs lead and lift its sanctions on My- anmar and move people like Tay Za and Zaw Zaw from a blacklist to the top of the list of people we work wILI. As u busIness- man friend tells me, The cronies here are doing some good things and the counLry needs LIem. The US should also reconsider its policy of punishing the children of sanctioned individuals by refusing to let them travel Lo or sLudy In AmerIcu. Why push the next gen- eration to study in China and Russia? Instead, we should be giving them a chance to learn about free murkeLs In u Iree counLry. Above all, the US, a na- tion built by slavehold- ers and robber barons, sIouId sLop preenIng. There are no angels in countries with Myan- mur`s IIsLory. Even LIose with shady pasts can still help Myanmar walk out into the bright sunlight of u new duy. Stcnle Weiss, c lobcl mining executive and founder of Washington- based Business Execu- tives for National Se- curit, hcs been uidel published on domestic and international issues for three decades. HugPost ., , .:.e .~ . ~ _. .. :. q._ _.,.:.- ~....: . ..:q .~ .:._e. ._ ..~~ . ..~: .~: ~ . . .~,~ . ~..._ .:~.~~,.~ , .. . ...: .q :~ . ~~ ~_ .:. ...~.... Down syndrome .~.,:..:..,q ..:~...e . :.~ ._ . .:~ . q, ~~ ~ . ._~.~~ ~_.:. ...~..._. ~~ ... ,:..~~.,..,~. _e..:.._..~. , ~ ..~~- ..e:...q.. .~:..:. ...,.:. ,._~..~:..:. _.,._~_..:~q,~~~ ~..q ~, ..'.: q. ., ..~: ~,e.q._ ~~~_.:.... ~..._. ..~:.~:.:._. _., .:. . . .q.~~ ..:. .:.-. .:.. .:.~~ ~ .~: . .:.q ~ . ...~|.. .. . .:.~~ ~ ~~~_.:....... ~_.:. . .:.. .q:~, .:.~ ..'e ~: _.,.:.~ ~,..:.q. ..: .q :~ . .,. .:.~ .~~ q, ~~ ~ _~ ... .. .. _., .:.,q ,e.~._. ~_.:. ._. ~..|~.,._ _.,.: . -. . ~.q. ~._.:.~. ~ ~~ .~ _..:.. .:.~_. . .._.:~ .,._ ~. , _ e. ..: ._ . ..~:.~:.: ~_.__._.q: . ....:.. ~ qq :.._ .:q . .. . . , .~. . ~:. , .-_: .q......~.~_ . . . _ . .:. : e _ .. ._ . ..~~. ..~: .~: ~ ._ _.,.:.~ .~:_..~q .. ...:..q...,.q.:._e. _~._..,...: .e... ...~~. Htoo Group - ~_~.~~_e.. ..~~. Max Myanmar Group - ~ __e. _. . ~.~ ,' . . ~q e q._ ..~:.~:~._ ~ ..,. ..:~...q..._ e~e..,..:.~ ...:. .q...,..:.~ ..:q~. ._ . .. ~. .q.~ ~ ~ ..~..q.~~ ...:..q... ,..:...:q~._.. .~. ~.q.. ..e:~ ._ e ._ ~.~ .:._e ..~~. ..~: .~:~.: ~..q~,- ~.. ... ~.~.:.. ...:..q. . ...| .. . ..: . .q ._ ,:._ .~ .:q .~ ~, q .,. _e.._.~~~ ...~ ~q. ~ ~. .q~~ .:. ..: ._ . ..~..q.~~~ -... _~ ..:..|~ .,. . _e. ._ . ~..q~,~..q. ..~..q ..|...:.:.~:. ...:..q. . ~ . . .:.~ ._e..: .... ..: ._. ..~~. ..~:.~:~ . . .:.~:. ~._ ._..:q . . .e ~ , ,:._ .~ .:q .~ _ . .:.. _ e. ._ . ~.~.: Al Capone ~:. . ~ ..._. . , .-.:q .~ ~:. ~_.. ...._ . . . ~.:.._:, ~ .,._ . The US, a nation built by slaveholders and robber barons, should stop preen- ing. There are no angels in countries with Myanmars history. Even those with shady pasts can still help Myanmar walk out into the bright sunlight of a new day. Zaw Zaw, one of Myanmar`s youngest but best-connected tycoons. As the country starts to open up after decades of miIitary misruIe, a wave of crony capitaIists are repositioning themseIves as the fresh new faces of Myanmar Inc. S o e
Z e y a
T u n / R e u t e r s April 10-16, 2014 Myanmar Business Today mmbiztoday.com PROPERTY & REAL ESTATE 23 Contd. P 24...(Survey Finds) Myanmar Summary Pun Pucic Opens Cupitul's Iirst International Hotel Parkroyal Nay Pyi Taw aims to tap visiting dignitaries and high-profle guests Kyaw Min S ingapore-based Pan Pa- cIhc HoLeIs Group (PPHG) Ius omcIuIIy opened LIe hrsL InLernuLIonuI IoLeI In My- anmars capital Nay Pyi Taw, PPHG unnounced. TIe 18o-room PurkroyuI Nuy PyI Tuw opened wILI qo rooms, with the remainder expected to be fully operational by the end of this year, said PPHG, which is a wholly-owned hotel sub- sidiary of Singapore-listed ho- tel and property company UOL Group Ld. The launch also makes Park- royuI LIe hrsL InLernuLIonuI Io- tel brand in Myanmar to have presence in two major cities Yangon, the commercial centre, and Nay Pyi Taw, the adminis- LruLIve seuL oI LIe governmenL. TIe IoLeI oers un uII-duy dining restaurant, spa, gym, swimming pool and a range of meeLIng IucIIILIes. Nay Pyi Taw is the third larg- est city in Myanmar and has been listed by CNN as one of the worlds fastest-growing cit- Ies. As LIe cupILuI, Nuy PyI Tuw is expected to host a series of in- ternational events, starting with the ASEAN Leadership Forum In Muy. Set within spacious land- scaped gardens, the hotel is located within the vicinity of the Myanmar International ConvenLIon CenLre, LIe omcIuI venue of government functions, and the hotel said it anticipates being the accommodation of choice for many foreign and lo- cal dignitaries who are expect- ed to join the slew of meetings set to take place this year due to Myanmars ASEAN chairman- sIIp. Parkroyal Yangon, which was established over 12 years ago, is also undergoing a series of renovations this year to refresh its lobby, dining spaces as well as meeting and entertainment IucIIILIes, LIe IoLeI suId. The opening of the hotel un- der a management contract, and the refurbishment of Park- royal Yangon come on the heels of another recent development oI LIe group In Myunmur. Last November, PPHG an- nounced a conditional joint venture with local property gi- ant Shwe Taung Group to de- veIop LIe hrsL Pun PucIhc IoLeI In Myunmur. ScIeduIed Lo open In zo1;, LIe q8-room Pun Pu- cIhc Yungon wIII be IocuLed op- posite popular tourist attrac- tion Bogyoke Aung San (Scott) MurkeL. As an early and success- ful player in Myanmars hotel IndusLry, Pun PucIhc HoLeIs Group is keen to capitalise on business opportunities within LIe ourIsIIng LourIsm secLor to solidify our position as one of the leading international hotel operators in the country, said Bernold O Schroeder, chief ex- ecuLIve omcer oI PPHG. The opening of Parkroyal Nay Pyi Taw in such a promi- nent location in the capital will give the brand greater visibility and boost the groups Myanmar porLIoIIo. We look forward to harness- ing our in-depth market knowl- edge and strong reputation to win over more travellers with the quality accommodation and personalised service that we have become trusted to pro- vIde. PPHG said it continues to seek expansion opportunities in key destinations for both city und resorL IoLeIs In Myunmur. EIsewIere In AsIu PucIhc, LIe group Is Lo open ILs hILI prop- erLy In CIInu - Pun PucIhc Ho- tel and Serviced Suites Tianjin - IuLer LIIs yeur. By zo1;, IL Is uIso scIeduIed Lo IuuncI hve more Pun PucIhc und PurkroyuI hotels in Australia, China and ndonesIu. PPHG owns undJor mun- uges cIose Lo qo IoLeIs, resorLs and serviced suites with some 1z,ooo rooms IncIudIng LIose under development in Asia, Oceania and North America un- der two brand names Pan Pa- cIhc und PurkroyuI. The Iobby o ParkroyaI Nay Pyi Taw. P a r k r o y a l . ~:. ~._.. ~ Pan Pacifc Hotels Group (PPHG) ._ _.,.:.- _..~: .,_._.~:~ ..... ~_._ _._ . q:e ~e ~. . ~ ~q:. ~e...._~:. PPHG . ~_., ._~_:.._..,_._.~:_ e... ..: ~. .| Parkroyal Nay Pyi Taw e~e._ ~.,...|. ~~ q._ _e.~: e.~.| ~.,...|. ~ ~:. ~.._...__e._.. e...~,~ ~.,.~:...~ ~,..:.....q, ..:.,.:.._~:. PPHG . ._.: _~:..._. e.~. .,_._.~:~ e ~e .. ~:. e . . _ . .~:._ e Parkroyal ~~ ~ _., .:. - ~. ~ _._~...._e...: q,~,. .,_._ .~: ~ ~_._ _._ . q:e ~e .:. ~:. e . . . ._ .. .. .e ~e . . , .~. . ._ ._e. .:._ _e. ._ . ~..|e~e~ _.:.:.q, .:. ..:~. ~.~.,......q: .,q: ~ e .~ . . q :.~:.~.:., .q~ .~, . .~ . .. ... .. .:._.. . . ._ ~., .~, ..: . .:.._ .q ._ e .q._. .,_._ .~: ._ _., .:. ~ ~~ e ~_~ .. ._. ~. _. _e. _. . CNN . .:q . _..:.._~.:e_e.~.~~.~_., .._..:..:q.~_.~._.._._e. ._ . _., .:. -_. .~: _e. ._ ~:. ..:.: .,_._.~:~ ~_.__._ .q:.~.~..:.~ _....:.q, ..: . , .:.q_. ....~ ._. ASEAN Leadership eq.~ _....:..__e. ._~:. .q._. .,...: ~ ...~:~ ~_ .: e . . . ._ Parkroyal Yangon ._ e. . . ~ _., ._ _. . . . .. ~: ~. _. ~ . .:._.. . .,._~: . ._. .q._. Average Billionaire Now Owns Four Properties Worldwide, Sorvey Iinds Aye Myat T he average bil- lionaire owns four homes, with each one worLI 1z. mII- IIon ($zo.; mIIIIon), wILI most having one in a lead- ing city and also a dream weekend of holiday home, new reseurcI sIows. Contrary to urban myth that billionaires live in James Bond style prop- erties, most choose large traditional family homes, typically six bedroom city mansion, the survey from Beauchamp Estates sIows. Some ; percenL uIso have seven to 12 bedroom holiday home or four bed- room plus huge apart- ment or penthouse in a city such as London, and tend to avoid bachelor puds. Amongst Western Eu- ropes capital cities, Lon- don is the favourite bil- lionaire property hotspot wILI 6; bIIIIonuIres IIvIng in the city, ahead of Paris on z und Genevu on 18. The Ultra Prime Barom- eter survey reveals that a billionaire will spend 1o mIIIIon or more on a London property, with their typical home in the capital being either a mansion in the platinum triangle formed by May- fair, Knightsbridge and Belgravia, or a palatial residence in the St Johns WoodJRegenLs Purk ureu. n SL JoIns WoodJ April 10-16, 2014 Myanmar Business Today mmbiztoday.com 24 PROPERTY & REAL ESTATE Myanmar Summary IFC Taps Myanmar Hotel Infrastructure with $80m Loan Eyes business-enabling infrastructure, tourism boost Wai Linn Kyaw I nternational Finance Cor- poration (IFC), the private sector lending arm of the World Bank Group, will give $8o mIIIIon Lo subsIdIurIes oI Hong Kong-based hotel owner and operator Shangri-La Asia Ltd to expand the latters hospi- LuIILy busIness In Myunmur. The Washington-based lender said the loan will improve the countrys business and travel infrastructure by providing international-standard rooms and conference facilities, boost- ing Myanmars tourism sector, contributing to its economic dIversIhcuLIon und susLuInubIe growLI, und creuLIng jobs. IFCs investment will be used to complete the renovation at the Traders Hotel Yangon, majority-owned by Shangri-La, and also increase its capacity Irom z;o Lo q8 rooms. IFCs investment will also be used to complete construction of the Shangri-La Residences Yungon, u zqo- upurLmenL buIIdIng, LIe Iender suId. Both projects are expected Lo be hnIsIed In zo1q, und ure expected to meet the acute de- mand for hotel rooms and ser- viced apartments from business travellers and expatriate work- ers. International arrivals in My- anmar have increased by about o percenL u yeur sInce LIe economy opened, surpassing one mIIIIon Ior LIe hrsL LIme In zo1z. This investment continues our relationship with IFC to- wards developing the hospital- ity industry in a challenging country environment in South- east Asia, said Madhu Rao, cIIeI hnuncIuI omcer oI SIun- grI-u, wIIcI Is o-percenL owned by Kerry Group Ltd, a conglomerate based in Hong Kong that is controlled by Ma- IuysIun Lycoon RoberL Kuok. The projects key locations in the central business area of the countrys most populated city Yangon, along with Shangri- Las quality, will set a bench- mark and raise the quality of servIces uvuIIubIe IocuIIy. IFC said it will work closely with Shangri-La to ensure that international environmental, health, and safety standards are udIered Lo uL LIe sILes. The lender said the renova- tion and construction projects are providing jobs for more LIun 1,ooo IocuI workers. AbouL 6oo permunenL empIoyees - oI whom about one-third are ex- pected to be women have been hired and trained in hospitality Lo operuLe LIe properLIes. At a time of growing econom- ic interest in Myanmar, it is cru- cial to increase access to much needed business-enabling in- frastructure to attract more in- vestors and travellers, as well as helping place Myanmar on a par with other commercial hubs in the region, said Vipul Prakash, IFC Director for Manufactur- ing, Agribusiness and Services, AsIu PucIhc regIon. The operation of internation- al standard hotels and serviced apartments will help generate jobs and provide supply chain linkages to local farmers and suppliers, thus boosting the tourism sector and contributing Lo economIc dIversIhcuLIon und susLuInubIe growLI. Since the lapse of sanctions, ~. :~~e~._._~.-~e~ _e...: IFC ._ Shangri-La Asia Limited - ..,...:.~:. .... ~..q~,..'.: ~ .,. ~~ ~_ ...:._. . _., .:. ~ e ~e .q .. :.. . , ..:.~:. ~ .~~ .:..q,~~~_e.._~:. .q._. ~..|....._~: _.,.:.- e ~e . .q .. :.~._.. ~..:~ ~~ ~_~ ~_._ _._ . q:~. ~~, .. ~.,..:.~:. .:~.....:.._ _e.._~~~ _.,.:.-.q.. :. ..,.~~~ ~.,.~:.. ,..: ~. ~.. ..~: .~. q. . _e. ._ . _. ~_~.~ e_e.~.~~. .qq_~_~.. ~..~~~. ~.. ..~: ..:.._ ...' ~ .:. ._._e.._. IFC - q..._.... .:.~ q,~,_.q ~,.__~..:. e~e~:. _.,.__.......~ _. .. .q, ~~ ~ ~. ._.. :.._ _e. .. ~., ..:.~ ._ . ~ . , ., .~ ~...:..__e.._~:. .q._. Shangri-La ._ ~,.__~..:. e ~e -~. ~. . . _e. _. . IFC - q .. ._. . . . ~ ._ . q, ~ , q Shangri- LaResidences ~_ ..:~ . _. .. .q, ~~ ~ ~. ._.. :.._ _e. ._~: . . q ._. A generaI view of Traders HoteI, majority-owned by Hong Kong-based hoteI owner and operator Shangri-Ia Asia Itd, in cen- traI Yangon. Part of an $8U-miIIion IFC Ioan wiII be used to compIete the renovation at the Traders HoteI Yangon. S o e
Z e y a
T u n / R e u t e r s IFC, together with the World Bank, has been extensively in- volved in reforms and invest- menLs In Myunmur. n Y1, IFCs investments climbed to un uII-LIme IIgI oI neurIy $z bIIIIon. Regents Park, the typi- cal ultra prime mansion cosLs zz. mIIIIon, Is 8,q8 squure IeeL In sIze und uveruges z,z; per squure IeeL. WIIIe u Muy- IuIr munsIon cosLs z1.; mIIIIon, Is 6,8zo squure feet in size and averages ,z1; per squure IeeL. The average London ul- tra prime residence has six bedroom suites, four recepLIon rooms, some q6 percent have an outside gurden, q percenL u prI- vuLe swImmIng pooI, q percent a private cinema und q percenL u guLed drIvewuy. Amongst the European beachfront, island and rural estate holiday loca- tions, the French Riviera is the top property hot- spot for billionaires with un esLImuLed q IuvIng From page z...(Survey Finds) homes in the region, with other popular locations including Tel Aviv in Is- rael with 17, Tuscany with 14, and Greece and the Greek islands with nine bIIIIonuIres. The typical French Rivi- era ultra prime home is a modern refurbished villa with sea view valued at uround 18.6 mIIIIon, provIdIng 6,11 squure IeeL oI IIvIng spuce. L has six to seven bedroom suites, four reception rooms, und qo percenL Iuve u swImmIng pooI, q8 percent a private gymna- sium and 7 percent a wine ceIIur. The property is typically seL In o. IecLures oI Iund. The average Riviera ultra prime home has a value oI ,1q per squure IeeL, although values of up to 6,86 per squure IeeL have been recorded in the ureu oI Monuco, reecLIng the fact that some trophy locations along the Rivi- era can be as expensive as prIme cenLruI ondon. In Tuscany billionaires get a lot more land and property for their money with the typical Tuscany ultra prime home costing 1z.1 mIIIIon yeL provId- ing 74 hectares of land, a 1,o8 squure IeeL Iouse wILI 1z bedrooms, hve main rooms and a private swimming pool, vineyard or oIIve grove. Where these types of Tuscan estate are pur- cIused, 8; percenL wIII have undergone substan- tial restoration and mod- ernisation to turn them into a billionaires pad, with state of the art com- munications and security sysLems. . ,:~. .._ .. .. ~ . ......._.. ~.~... ...-~,e..: .~:...| ~ ... .,. ~..q ~,..'.: ~ ... .,., ~ ~,e.q._~:. .q~: .,:~.:...: .~,._. _~.~..~ ~.~...~ee .. q_ . . ~:... q~ . :.~ ~,:.e ~., .._eq, ~ . ~ ._ . ..:...q._~:. ..~ .,.~~....~..~q .q ._. . ,:.:..: . .. , , . .~_e~._.._..:.~ ~ee ., .. q ~: ~.:. . . : _~..:...: ,.q:~.~.:.. q ._ . .:.. ~ . .:.~ .q ..e ..q_~_.. ..~:._e ~..,. ._.:~.,.~ .|~..: ~. .e:_ ~ . . :. _ e. ._ ~: . Beauchamp Estates . ..~ .,..~..~q .q._. .,: q:..,..: ~:...q.~.,.._eq:~.~ ~..,. .,.. ~ .,.~ q.,_.. .,.,~. _._~..:. ~._. ~..,. , .,.. ~., .~e _~ ..:.~ ._ .. . :.._~: .. q._ . Myanmar Summary R a n d o lp h
H a r r is o n / N Y
T im e s April 10-16, 2014 Myanmar Business Today mmbiztoday.com AUTOMOBILE 25 Myanmar Summary Myanmar Summary Mitsubishi Motors Corp's vehicIes are seen at the company headquarters in Tokyo. Mitsubishi Motors Corp said on Wednesday it wouId aim to boost operating prot by more than one-third to 135 biIIion yen ($1.37 biIIion) over the next three years as part of a mid-term business pIan through March 2U17. Mitsubishi Motors Buys Ford Plant in Philippines in SE Asia Growth Push Pann Nu J apans Mitsubishi Motors Corp said it has bought the site of a former auto plant in the Philippines from Ford MoLor Co, beehng up produc- LIon us IL LurgeLs u neur-o per- cent sales boost in fast-growing SouLIeusL AsIu murkeLs. Mitsubishi Motors, the sec- ond-biggest automaker in the Philippines by sales volume af- I s s e i K a t o / R e u t e r s ter Toyota Motor Corp, said it will centre its Philippines pro- duction at the plant in Laguna Irom Junuury zo1. TIe pIunL will have an annual capacity of ubouL o,ooo veIIcIes, grudu- uIIy rIsIng Lo uround 1oo,ooo veIIcIes. As part of the strategy, the auto maker will close and sell its ageing existing Philippines plant in Rizal, spokeswoman Tomoko Kuwube suId. MILsubI- shi Motors declined to say how much it paid to buy the Laguna plant, where Ford made sports utility vehicles until December zo1z. The move by Mitsubishi Mo- tors, maker of Triton pickup trucks and Outlander SUVs, adds to growing competition among global car makers in the populous Southeast Asia re- gion, dominated by Toyota and oLIer Jupunese cur mukers. We are planning to prepare for future growth in the Phil- ippines, whose auto market is likely to continue grow sustain- ably, the company said in a sLuLemenL. For second-tier car makers like Mitsubishi Motors and Suzuki Motor Corp, Southeast AsIu oers u mujor opporLunILy as they seek to compensate for shrinking sales in their ageing domesLIc murkeL. TIe regIon now accounts for a quarter of Mitsubishi Motors global vehi- cIe suIes. Mitsubishi Motors has a plan to expand regional sales by 44 percent over three years to end- MurcI zo1;. n LIe PIIIIppInes it currently makes vehicles in- cluding the Lancer EX sedan und LIe AdvenLure SUV. Non-Japanese car makers are also seeking to build up their regIonuI presence. usL yeur, VoIkswugen AG VOW_p.DE set up distribution channels in Philippines, while General Mo- Lors (GM.N) Ius been sLeppIng up ILs eorLs Lo seII curs In LIe regIon IncIudIng ndonesIu. In Thailand, MMC has invested over oo mIIIIon buIL ($16.1 mII- IIon) esLubIIsIIng ILs hrsL R&D test course outside Japan part of its business plan New Stage zo16. TIe IucIIILy Is IocuLed In Nhongkham Amphur, Chonburi, ubouL z6km Irom LIe uem CIu- bung ndusLrIuI EsLuLe. Mitsubishi Motors Philippines Corporation (MMPC) ._ Laguna _._,e~~_q._ Ford Motor Company Philippines . .~,.,q: ~..~ ~ee.._~:. .q._. ~..|.,q:. ~._..~,.. .~, ~:. .q ._.:..__e.~: ~~ ... ~, ,~|q .~ ~ . . . .:.~ _.. . . :.eeq.,._.~. ~... ... ~:. ~ . . . .:.:... ._ Mitsubishi Motors Corporation (MMC) - .,:~.~.e~.~ ~:.. . . :. .q. ~. ~. _ e. ..: New Stage 2016 - ~.~~..~. q._e.._~:.._. .q._. Lancer EX Adventure compact MPV . L300 ..:.~:~:.~.. ~.:.~~ e.... ~ ~.. . _. ._e. _.. . , . ._ . .~ Mitsubishi ._ ~ ... q:..,. ...~~ qee:qq.._~:. .q~: ..:.~: ~:.~...q..|. ,,'~ ...q:... q._ . ~_. .. ~ ._ . ~. ~~ ..e.~: q.. ~ ... , ..e, ~:. q..._...:. ._~:. .q._. Online Car Market Revs up Tech Race A screenshot of the MyanmarCarsMarket website. M B T Phyu Thit Lwin O nline car marketplace MyanmarCarsMarket has upgraded its por- tal to utilise state-of-the-art technologies in a bid to grab a bigger share of the burgeoning auto market pie in Myanmar, LIe compuny suId. As Myanmar opens up to the rest of the world, the way busi- nesses and consumers interact with each other is expected to change dramatically, especially with the rapid introduction of new telecommunications, mo- bIIes und InLerneL servIces. The site will now use technol- ogy that comprise multi-tier ar- chitecture, agile methodologies and a well-designed universal relational SQL database, which will be able to support mil- lions of users, customers and hundreds of thousands of on- line advertisements nationally, across multiple languages, the compuny suId In u sLuLemenL. With the introduction of the new Telcos Telenor and Oore- doo combined with our two ma- jor local operators MPT and Yadanarpon, the business land- scape is going to go ballistic like it already has in other emerging countries around the world, said Hein Thet Khin Zaw, own- er of local company myOpen- ware, which has developed the cur deuIIng porLuI. Weve already seen a sig- nIhcunL uprIse In our user buse and advertising volume in the last year, and we want to be at the forefront of this growth by investing in our systems, tech- nology and supporting our cus- tomers with continued free car udverLIsIng servIces Ie suId. He said myOpenware intends to release a number of new high tech products and services to support its vision to be the number online advertising play- er in the country in the coming years, including multiple device support as well as online trans- ucLIons LIrougI LIeIr sysLems. The company stated it has had numerous IT professionals working on its new websites in the last 12 months in order to prepure Ior sIgnIhcunL growLI In LIe comIng yeurs. It said it is currently recruit- ing senior sales and marketing personnel, and plans to look at actively partnering and working with key players in their mar- kets to support growth, includ- ing hoping to attract new inves- tors to share their vision and growLI sLruLegy. This is the time for growth and investment in our systems, were grateful to all our custom- ers on MyanmarCarsMarket and MyanmarJobsMarket and to Myanmar for opening up the tech race in our country, Khin Zuw suId. _., .:. ._ ~ .|.e ~|.~ . .. _...,:~.. ~_.:.~.:..:.. .~.e.q.:.~. ...:..q... ,..:.. .:.....q.q:~_.,~., .~.e..:..:._. ._.:...:. ._. ~.._e .~.e.q.,_. ._:...:. ..e,..:.. ~ ~: ,~ ~, ..: . .:. ._~: ~ . ._ .: .. .:_ . . _ e. ._ . www. myanmarcarsmarket.com ~:. _._ ~..,.~..,.q~... . . ~: . . , ...: q~ .,._ _., .: .~._..~ myOpenware ~.~ . ~.~:~_.e:..:q~._.. _e.._.~..|~~.~~ ~.: ...~~~ .,:~....'~._. ,_.._:.:...~.~._.~. ~.~~.~.:.~._. .q... ~.~~.,_e .~.~.~~.~ ,_.._:~..~._:q.:..~~ ~~ . ~ ~.. .:.~:. .: q, ~~~ .,...: ~ .~~_.~ _ ~ ... ...: q ~ .,._ . . _.:. .~: ..q~:_~ ..:._e. ..: Telenor Ooredoo ~~_. _._~.. _.,.: .~ . e .q.. q~,:. ~e . . ~ ~ ...,._~..:.. .~.e.q.~_ ~ ..: q ~ . q .,._ ~~ ~ ~_.:. e_e....:.~.. ...:..q.. ~. . _e. .:._~: . . , . ._ . . ~~ . ~.._... ._~:_:.:.~.~~.: ._~:. ..~-.,..:. ,_.._:.:. ~:. q..._..._.._e ..~~.,_e e. e _e .~ .~~ . ~ .~ .~ _e. ~_ .._~:. ..~-.e:~._.:.~:. ~..~:. ._~:_:~,..:..:._e .:~ . ...q, _e. ._~: . _._ ~ .. , . ~ . . , .q _e. ..: e , ..~ . .~:~ ._.:_~:..._~:. .q._. April 10-16, 2014 Myanmar Business Today mmbiztoday.com 26 INTERNATIONAL AND DOMESTIC FLIGHT SCHEDULE Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN) Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia 8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia 8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN) W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN) Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline 8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI 8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir 8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN) AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia 8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN) VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN) VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN) CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN) CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG) Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN) CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG) Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN) Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN) KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air *PPleaasee noote thee dday change for the deparrture time too Hong Kongg. Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN) 8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN) Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY) Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN) 8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN) NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN) KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN) QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN) Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by: FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 13:00 14:00 FMI Air Charter FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN) Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday April 10-16, 2014 Myanmar Business Today mmbiztoday.com IT & TELECOM 27 Myanmar Summary Contd. P 28...(Myanmar's Mobile) Contd. P 28...(Myanmar's Mobile) Myanmars Mobile Phone Revolution It is one of the worlds least connected nations. But all that is about to change Michael Peel A s elections approach, providing a mobile phone network would boost the governments popu- larity Even the white cattle are fad- ing from view in the gathering dusk of this riverside Myanmar village, the tiny lamps hanging from the traditional wooden stilt houses the only defence uguInsL u nIgIL wILIouL IIgIL. Soon the noises of quiet conver- sation and religious devotion wIII be LIe onIy sounds hIIIng the sensory gap the darkness leaves in Mwe Pon Kan mak- ing this rural idyll ripe, in the newly opening Myanmar, for a communIcuLIons revoIuLIon. This is the market we need to serve, says Petter Furberg, country chief executive for Nor- wegian telecoms company Tel- enor, who is visiting this com- munity in the countrys central beIL Ior LIe second LIme. TIere is no electricity here, no road und no coveruge. He exaggerates slightly you can get a jumpy signal on the old state MPT mobile system if you hang out by the river bank but his remarks are true enougI. TeIenor Is rucIng wILI its rival Ooredoo of Qatar to be LIe hrsL Lo roII ouL u LeIecoms network in Myanmar later this yeur, u dehnIng momenL Ior u country shuttered by decades of insular dictatorship and still with a mobile penetration ruLe esLImuLed uL onIy 1o per- cent, three years after the junta sLepped down. Its a story not just of frontier capitalism in one of the worlds least connected nations but of Myanmars direction as it ap- proaches landmark elections nexL yeur. TIe InILIuI eupIorIu over the militarys decision to loosen its grip and hand power to a quasi-civilian administra- tion led by a former general, Thein Sein, has given way to a more realistic assessment of how much change is still need- ed and how far the country has IuIIen beIInd economIcuIIy. For the new rulers of the state still known to many as Burma, a mobilephone network is pre- cious because its a rare way to make a demonstrable change to peopIe`s IIves beIore LIe poIIs. Whether you talk to taxi driv- ers or schoolteachers, theres a big demand, says Chris Ban- nister, Ooredoos Myanmar cIIeI operuLIng omcer. Iuve met people who have paid be- Lween $o und $oo Lo geL u sIm curd. TIuL`s unIeurd oI In every compeLILIve murkeL. Telenors Furberg has agreed Lo IeL me sIudow IIm Ior 6 hours as the company begins its drive to start operations within eIgIL monLIs oI LIe $oo-mII- IIon IIcence uwurd hnuIIsed In January and then push to- wards a sizeable long-term tar- geL operuLIng cusI-ow murgIn oI o percenL. TIe journey be- gins amid a cluster of late-night tea- and beer-houses on the outskirts of Yangon, the depar- ture point for the overnight bus that has replaced the intercity river steamer immortalised in Rudyurd KIpIIng`s MunduIuy. Evocative if uncomfortable vi- sions of piling on slatted wood- en seats among market-sellers and chickens are dispelled by LIe $z busIness cIuss bus service were booked on, where LIe sLewurdess oers IresI strawberries and theres Harry PoLLer on LIe seuLbuck TV. We`re dropped o In LIe duwn chill of Myanmars former royal cupILuI. Over breukIusL noodIes at a roadside restaurant, Furb- erg and four other Telenor man- ugers - uII In IdenLIcuI eece jackets bearing the companys tri-bladed propeller logo out- line the task facing the business as it expands into its sixth Asian counLry. WILIIn hve yeurs, IL musL serve qo percenL oI My- anmars population although nobody knows how many peo- ple that is, as the government Is IuuncIIng LIe hrsL census Ior more LIun o yeurs. TIe duy`s hrsL sLops ure wILI potential distributors who will be Telenors crucial link to an InILIuI esLImuLed z,ooo nuLIon- wide points of sale for phone credIL und sIm curds. urberg - a former Norwegian bureaucrat und 1-yeur TeIenor veLerun - wants people with an entrepre- neurial spirit and without links to the corrupt business net- works that are a constant head- ache for multinationals and pri- vate investors trying to suss out poLenLIuI purLners. TIe hrsL meeLIng Is wILI Myo MIn TIu. An engugIng zq-yeur- old who has studied in Sin- gapore, he says he wants to branch out a family business based on distributing Coca-Cola and other soft drinks and hard IIquor brunds. TIe InLervIew ends with a demand ringing in his ears: Every shop should know Telenor and every shop sIouId recommend TeIenor. After a meeting with a second distributor candidate, who runs a beans factory and internet cuI, urberg Ieuds o Lo Iook at possible sites for some of LIe 8,ooo LrunsmIssIon Lowers the company will need to build or share with its rivals nation- wIde. TeIenor omcIuIs ure sensI- tive about my questions on how much they pay for land rent and how they establish true owner- ship of property, which is a huge problem in Myanmar because of its history of seizures by the former junta with no or mini- muI compensuLIon. One oI LIe sites is a makeshift warehouse for imported Chinese thermos usks, wIere LIe co-owner, Nun Molyan, has one big question apart from the rental terms: When do we get SIM cards? On the way from the meet- ing, Furberg talks about the ob- stacles that face international compunIes In Myunmur. Some problems are predictable, such as the chronic electricity short- ages that mean Telenor will need back-up generators capa- ble of running its computer sys- tem for two to three days, not mInuLes or Iours us eIsewIere. OLIer dImcuILIes ure Iurder Lo plan for: Furberg says he simply doesnt know how far Telenor will be able to go into the vari- ous zones oI conIcL beLween ethnically rooted militias and a government still seeking the _., .:. ~.,_e . .q. . .. :..q. _._. ._.: .. . .:.~ ~.~: ~_ .e:..:q~.~: ~_~....~ ._. _._. ._.: .. . .:.~ ..: q ~ . ._ . _._. ._.: .. . .:.~ .~ .e.q.~_.:._. ..:q:. ..: ~._.:.~.~.q.~_e. .~ _..,q_._e.._.._~:.~.,~~. .q..~:~ . ~ _.. . ~ ...~: ._ _e. ~: . .e , .~ , q~ .:.~:. .:~ . ....:_..~.,_e ~..q~..' ~.:._._..:.. ..:~.._~~ .~ ~.~~.:.....__e.._. _., .:. ~.,_e . .. :..q.~.:.~.: .~:..:.qq: ~.q.~:~:q~e ~.~.._e...:._. ~:. q _ _~:. : . .. :..q.~ .|.. ~ . . ..: . .:.. ~. : . .:.. ~.~ ~. e _.~.~:~.~ .._.:.q.~_.q. ~._~: .~..~.:..: q.,... ._. .- .~..~....:.~ .....:~~:.~ .~......_~ ..... .~ . e .q.~ ._ . .:.. : . ~. .,...._ . .,: .~.. -.~ . e .q.~ . ~ _~ ._e. ..: Telenor - ~. ..: ~q:q .. ~. ._e. . Petter Furberg ~ .~..~.:..: .. ~ ..: q ~ . :.q._ ...~ ~ . _e. ._~:. ._.:_~:..._. . , . ._ . . ~ , .~ .~ . e .q. ...:.~ .,:.~..- Telenor . ~:~:.- Ooredoo ~~:. ....._.. e...~~. .~.e.q. ~,q~.:.~ .:.:.q,~~~ ~_. _ ~ ... .. :.q._ ._ e. ._ . _.,.:.~ ..~..q~....~_.. . .. . ~_~:~ . .e , .~. ._.. . , . .: ...q- ~~ q:..,.,..|..:q ...._ ~~ ~ .~ . e .q.~_~:. e _e .~ .~~ .:..q, ~~ ~ .:.. : _~ ... .. :.q .._ ._ ._e. ._ ._., .: .._ ~.:..'~ .~.e.q. ~__ ~:.~,_....~.._e. _. . .:._ . . ~ .q..~:~ . ~. q. ~ ._ . _.. . . :.._ _e. ._ ~~ ~ .~.e.q.~_~.~~..: ~..q ~~~._. .~.:.,.....__e. ._ ... ~ . ... ~_.. .. ~ .. , .. , ...:..: ~q..:.~..q~~ .:.~: _._.._.:...q..:...: q ~ q, ~._.~.,.:.. . ~. .~ .:. ~ ._...:..|~.:... . ~.,_e ...:..q.~q ._..,:~~ ~, q. . ._ . ._ ~.~ ._~: . .q.. ...:..q._._.._.:....:.~ ~ ~ ~ ~:.~ ~ _~ ... .. ._ .~~ . e: ..: ..:.~:._e. .. .~: ..q: .q:..:.~:._e... .~:.._.:._ A coupIe uses a mobiIe phone to take pictures on a boat in Yangon. S o e
Z e y a
T u n / R e u t e r s Whether you talk to taxi drivers or schoolteachers, theres a big demand. I have met people who have paid between $50 and $300 to get a sim card. Thats unheard of in every competitive market. April 10-16, 2014 Myanmar Business Today mmbiztoday.com 28 IT & TELECOM From page z;...(Myanmar's Mobile) From page z;...(Myanmar's Mobile) hrsL nuLIonwIde ceusehre sInce Independence In 1qq8. He suys hes had encouraging contact with some rebel group repre- sentatives, who are very po- lite and thinking of all kinds of opportunities to do business and engage their people in do- Ing busIness. On human rights and surveil- lance, Furberg says Telenor has pushed hard for safeguards against undue government in- LerIerence. Every mobIIe operu- tors nightmare is the scenario that faced Vodafone in Egypt durIng LIe zo11 uprIsIng uguInsL President Hosni Mubarak, when it bowed to orders to sus- pend ILs servIce. Myunmur Ius built in a requirement for the government to obtain a court order before asking a company for data though whether the courts would resist such a re- quesL Is open Lo quesLIon. Furberg also says Telenor has strict controls in place to pre- vent the kind of corruption al- legations that have embroiled other mobile companies, in- cIudIng TeIIuSoneru oI Sweden. TeliaSonera denied wrongdoing In zo1z wIen IL wus uccused oI puyIng $zo mIIIIon Lo u com- pany controlled by an ally of the Uzbekistan presidents daugh- ter but the chairman and chief executive still resigned a re- minder that new markets with weak institutions can be dan- gerous us weII us IucruLIve. By now weve passed from paved highway to gravel road to dirt track, before the sur- face gets so bad that we have Lo conLInue by moLorbIke. Our convoy wends its way along earthen dykes before stopping by a river, where children step on stones against a backdrop of brIIIIunL green rusIes. TIe bIkes are loaded on to a ferry punted silently to the monastery-lined vIIIuge oI Mwe Pon Kun. A farming community where peo- ple can expect to earn between $qo und $;oo Irom eucI rIce harvest, Mwe Pon Kan was o-IImILs Lo IoreIgners durIng LIe junLu eru. One sIgn oI LIe changes that have taken place is LIe omce oI Aung Sun Suu KyI`s National League for Democ- rucy. IIe Is socIubIe, und muny of the compounds spacious buL LIe cIosesL IospILuI Is zo mInuLes downrIver - un eec- tive death sentence for people bitten by the snakes common In LIe surroundIng heIds unLII villagers hunted them down a few years back and sold them to CIInese mercIunLs. Only a fraction of Mwe Pon Kans households have mobile phones for now, with most re- lying on the telecoms services oered by u Iew mom-und-pop stores through massive desktop IundseLs. L wouId be more convenient for us to do business if there were more mobile net- works available, said Khin Mar, a shop owner, who laments that demund Ior Ier 1oo-kyuL-u- mInuLe (ubouL 6 pence) pIone service four times the new government-set basic mobile call rate has dwindled to half or u LIIrd wIuL IL wus u yeur ugo. Before leaving Mwe Pon Kan, urberg sLops o uL LIe IocuI school, where the buildings are so crowded that some classes Luke pIuce In LIe open uIr. He hands over a big bag of exer- cise books bought in a market in Mandalay, a personal cash donation and Telenor-branded key rings and pens, which the pupils wave enthusiastically as we Ieuve. uLer, urberg dIs- misses the idea that it was inap- propriate to hand out company mercIundIse Lo LIe cIIIdren. could have bought pens from the market but it wouldnt have been as much fun as pens with LIe propeIIer on, Ie suys. think you are over-problematis- Ing beIng poIILe. On his return to Yangon, Furb- erg is due to hold the latest in a series of town meetings to talk about Telenors plans though he admits that many people come hoping for SIM cards and are a little bit disappointed we are not yeL roIIIng ouL. L`s u smuII sIgn oI u Iong-sLIed cruvIng Ior LIIs cosmopolitan nation, historically at the heart of Asia, to resume normuI IIIe In LIe worId. PeopIe ~.| ,.~~ _~..:.._.~.. ~..q._~:. Ooredoo - ~_~. ~~ ~. ._e. . Chris Bannister ~ ._.:_~:.. _. . . .~~ ~. . qq q, ~~ ~ ~..q~,..'.: ~ . ~..q~, ..'.: ,~~ ~ ....q._..:. .._. ...~.._.. ~_.:.e_. . . . .q ._ ._ ._ ...~ ~ ~ .. ....,.~:. ._~:.e.._~:. ._.: _~:..._. feel very strongly that this coun- try deserves something better, urberg suys. TIey deserve LIe benehLs we ure brIngIng Lo LIe mobIIe murkeL. And LIey deserve Lo be LreuLed properIy. Michael Peel is the FTs Bang- kok regional correspondent. FT Samsung Electronics Mobile Head Paycheck Hits $5.8m, Beating Apples Cook Wai Linn Kyaw T he head of Samsung Elec- tronics Cos mobile busi- ness, JK Shin, received u $.8 mIIIIon compensuLIon package last year, beating the paycheck of his counterpart at US rival Apple Inc, the South Koreun hrm suId IusL week In ILs hrsL sucI dIscIosure under new reguIuLIons. The worlds biggest technol- ogy company by revenue said Shins pack included a base sal- ury oI 1.1; bIIIIon won ($1.oq mIIIIon) und 1.6 bIIIIon won In incentives and performance bo- nus. By comparison, Apple chief executive Tim Cook received $q.z mIIIIon In zo1, IILLIe changed from the previous year wIen Ie Iud been puId $q.1; mIIIIon. Cook, Iowever, Iud u separate pay related to annual stock grants, while Shin did not Iuve sLock opLIons. Shin, who has led Samsungs mobIIe busIness sInce zooq, has since overseen the launch oI ILs ugsIIp GuIuxy IundseLs that helped it unseat Apple in the smartphone market and also sparked patent litigation the world over that claimed Samsung copied the look and IeeI oI LIe US hrm`s IconIc mo- bIIe producLs. Samsungs other co-chief ex- ecutive Kwon Oh-hyun, who leads the component business, eurned 6.;; bIIIIon won, wIIIe third co-CEO Yoon Boo-keun, the head of its consumer elec- LronIcs busIness, receIved .oq bIIIIon won. SouLI Koreun hnuncIuI uu- thorities changed regulations late last year, requiring listed companies to include annual compensation details of execu- LIves wIo eurn more LIun oo million won in their business reporLs hIIngs. But the measure also drew some criticism as it does not shed much light on pay details oI some IIgI prohIe owners of business conglomerates or chaebols, as they frequently as- sume non-execuLIve LILIes. Samsung didnt disclose re- muneration details of JY Lee, non-executive vice chairman and son of its chairman Lee Kun-hee, who is also non-exec- utive chairman and receives no suIury Irom Sumsung. Myanmar Summary Samsung Electronics Co - . . ..,...~ ~_~.~~_e.. J K Shin ._ .,.._..~ ... ..: ~..q~,..'.: ... .,.qq._.. _.~..,._e...: ~..q~,. Apple Inc - .. . . , .. .~_~ .~~ _e. . qq ._ .....:~.:.,._._e.._~:. .~: ~ q . e:. . . , . _ e. ._ Samsung Electronics Co . ._.: _~:..._. Apple -~. ..: .. TimCook ._ ~~, ...~ ~..q~,..'.: ,... .,.qq._.. ~~ ...~ ~..q~,..'.:,...~ .,.qq. ._ ~~ ~ . . ...:qq. . : ~,_ . e.: ._.:...._....:._. Cook .: ... ..~:qee:qq .._~.~~..q.,_.. Shin .: ~. .|~.~ .q ._~: .._ . . q._ . Samsung EIectronics Co CEU ]K Shin speaks at a press conference. T h o m a s
P e t e r / R e u t e r s Myanmar was one of the worId`s Ieast connected nations. But aII that is about to change. R e u t e r s This is the market we need to serve. There is no electricity here, no road and no coverage. April 10-16, 2014 Myanmar Business Today mmbiztoday.com IT & TELECOM 29 Myanmar Summary Myanmar Summary Myanmar Summary Sony Unveils New Xpreia Smartphones Kyaw Min A lpha Technology & Com- munication, the author- ised distributor of Sony Xperia products and accesso- ries in Myanmar, has unveiled two of Sonys latest smart- phones and tablets at their Pre- Thingyan Promotional Sales CumpuIgn, LIe compuny suId. This campaign is specially catered for the water festival so that customers can take good quality pictures with their fami- lies and friends during the fes- tive season without damaging their phones, April Lim, coun- try manager of Alpha Technol- ogy und CommunIcuLIon, suId. Lim said: Sonys sleek de- sign, advanced technology and water resistance capabilities will be very attractive to our cusLomers. To provide our customers with an array of choices, we will be runnIng promoLIon on 1o dIerenL modeIs In LIIs cum- puIgn. Sony Xperia ~~,.:. ~.. ~..:.._..:.~:. _.,.:.~ ~q:.~~.._e,..qq:.._ AlphaTechnology & Communication ._ Sony - .,:~ . . ~ ..~ e , . . Tablet ....~:. ._~,~:. ~.q: ._. ~ .q.~. ~. ~_e. . ~ .~....._~:. e.~.~. ._.: _~:..._. e.~.~.~:. ._~,~.~:. ~~ ~ ~ .q_ q e _..: q ~ . _. . _e._.. ~.._...:.~.,_e ,.~- . .:.. .:.. e . ..:.. ~~ ._~ , ~:.~~. ~q_~....~:.., ..:.:~ . .:.~ e , . . ~ .~ . .. .q , ~ e . :.. . . ._ _e. ._~: . Alpha Technology and Communication . .,.,:~.._e.._ April Lim ~ ._.:_~:..._. Alibaba Invests $692m in Chinese Department Store Operator Elzio Barreto C hinas Alibaba Group Holding Ltd agreed to InvesL $6qz mIIIIon In u Chinese department store op- erator as the e-commerce giant Iooks Lo brIng LIe benehLs und convenience of online shop- ping to customers who visit real brIcks-und-morLur sLores. Alibaba, whose businesses will come under investor scruti- ny ahead of the groups planned mega IPO in the United States LIIs yeur, suId IL wIII buy $z1q million worth of shares in Hong Kong-listed Intime Retail (Group) Co Ld. L uIso ugreed Lo ucquIre $q;8 million of convertible bonds, wIIcI wouId gIve AIIbubu u z6.1 percent stake in the department store operator once the bonds are converted into shares in LIree yeurs. In recent months Alibaba has gone on a shopping spree, spendIng more LIun $z.; bIIIIon to expand into media, chat ser- vIces und muppIng LecInoIogy. The expansion has encroached on the turf of social networking giant Tencent Holdings Ltd, which has in turn made inroads into Alibabas territory with its purLnersIIp wILI CIInu`s No.z onIIne reLuIIer JD.com. The purchases come as Aliba- ba starts its preparations for an InILIuI pubIIc oerIng seL Lo be the biggest-ever technology list- ing, surpassing Facebook Incs $16 bIIIIon IIsLIng In zo1z. nLIme wIII Issue zzo.q mII- IIon sIures uL HK$;. eucI und HK$.;1 bIIIIon worLI oI convertible bonds to a unit of Alibaba, the department store operuLor suId In u hIIng Lo LIe Hong Kong stock exchange last week. As part of the investment, Alibaba and Intime will form a joint venture to develop online- Lo-omIne, or OzO, busIness In shopping malls, department stores and supermarkets in CIInu. AIIbubu wIII own ubouL 8o percenL oI LIe venLure, wILI nLIme conLroIIIng LIe resL. O2O businesses seek to ben- ehL Irom LIe meLeorIc rIse oI smartphone use in China and can help turn a search into a shopping trip or meal based on LIe user`s IocuLIon. Reuters Myanmars E-Libraries Bring Students Up to Speed After Military Rule AYE MYAT T wo universities in Myan- mar have opened e-li- braries containing hun- dreds of thousands of digital books and periodicals in a move to help students catch up with LIeIr peers uround LIe worId. After years of isolation under strict military rule, students at the University of Yangon and University of Mandalay will now have uncensored access to a wide range of learning materi- uIs. Universities had been seen as centres of resistance to mili- tary rule and heavily restricted Yangons university had been one of the most prestigious in South East Asia, but had been caught in a cycle of protests, repression and shutdowns, wroLe BBC. But as part of Myanmars re- forms in recent years, univer- sities have been given greater freedoms, and young students have now returned to rejuve- nuLe negIecLed cumpuses. In the current phase, students must access computer termi- nals located in physical librar- Ies. However, boLI unIversI- ties plan to expand access to students dormitory rooms via their personal laptops in the neur IuLure. TIe hrsL wuve oI new sLudenLs to enter the once highly regard- ed universities are said to be the brightest and best in My- anmar and eager to learn and speuk EngIIsI. TIey Iuve bIg sIoes Lo hII uILer u generuLIon wILIouL u gruduuLIng cIuss. The e-libraries were provided LIrougI LIe joInL eorLs oI EIec- tronic Information for Libraries and The Open Society Founda- LIons. ~, ~ . - AlibabaGroup Holding Ltd ._ ~,~.-.~..~:..q ~:~..~ ~..q~,..'.: ' .,. q..._...q, ..:~_._.. ~. .| e-commerce . . , ._~ .~., _e bricks-and-mortar .~..:.. . :..q:~ q._ .e:~ ._ .:.~~ ~ ~ , . ..q : . .- ~~ ..~.~ .. ~. ._...:.. . .:.~ qq ..q, ~~ ~ ...:..,._~:. .q._. ~_. .e:.~:..~:~..,. ~ .:q .. .:.._ IntimeRetail (Group) Co Ltd - qee:.:.~ ._. ~..q~,..'.: ~, .,. ~. ._.~: ~e e . :.._ e ._.:_~:. . ._ . ~_. convertible , ..:.. .:.~._. ~..q~,..'.: , .,.~ ~.._.~: ~ee.:.q, ..:~ _ . ~: , ..:.. .:.~., _e ....~:~:.~ qee:.:. ~_e.._.:...._~~~ depart ment storeoperator ~ q e e: ' ... ~ q:..,.~ Alibaba ~~~ e,~.....:.eeq.,_...,.._. .:.~~. Alibaba .~..q~,..' .:....e.~:~ ~.._.. _.._e.._. R e u t e r s _ ., .:. q ~~ . . . . . ._ ~ .~ .q:,. .:_~_ ~ ~ e-libraries .:.~ e..._.. .~:..:..:.~:. ..:~~ ~~~_.:.qq..q, digital book .:.. ~.:~.~,.q .~:..:..:.,_.~ ~.~.q: ,..:_~_~~.:.~ ~.._..q, ~~ ~ e. ~ . e . . . _. ._e. ._~: . .q._. q, ~ , ~~ . . ._ e. ~ ~.q .~:~:q~ ~.,.~:_~:...: ~~...~:.~.._e._.. ..~..q -e....:.._~: .._...:._e...' ... ~~..~:. .~...q._ ~_e. . ..:._e. ..'. q._ .._~:.... . . .:.~~ . _., .:. -_._. ._.: .. . .:.._~: ~~ . . .:.~.,_e . . .~...:q.~_.:..._. April 10-16, 2014 Myanmar Business Today mmbiztoday.com SOCIAL SCENES 30 WPG Group Opens Te Big Fryer, Food Talk and Noodle King in Yangon Guests enjoying the bufet lunch. Nay Chi Studio Team from model FC and other female models. Nay Chi Studio Robert Chua, Singapore Ambassador to Myanmar. Nay Chi Studio Celebrity Melody. Nay Chi Studio Delegates pose for a photo. Nay Chi Studio Actress and model Soe Nandar Kyaw (M). Nay Chi Studio Te ribbon cutting. Nay Chi Studio Coca-Cola Debuts Myanmar Language International Music Collaboration and Kicks-Of Summer Campaign A Coca-cola representative speaks at the launch. Coca-Cola Myanmar Performers at the show. Coca-Cola Myanmar Performers at the show. Coca-Cola Myanmar Bobby Soxer (L). Coca-Cola Myanmar Sai Sai (L). Coca-Cola Myanmar Launch of the music collaboration. Coca-Cola Myanmar Launch of the summer campaign. Coca-Cola Myanmar Samsung Galaxy S5 Launch Zaw Moe Aung, product marketing manager. Samsung Myanmar Zaw Moe Aung. Samsung Myanmar Zaw Moe Aung. Samsung Myanmar Models with Samsung S5 smart phones. Samsung Myanmar April 10-16, 2014 Myanmar Business Today mmbiztoday.com CLASSIFIEDS 31 April 10-16, 2014 Myanmar Business Today mmbiztoday.com 32 ENTERTAINMENT China-Myanmar Co-Produced TV Series to Air in April Wai Linn Kyaw A fter years of planning und producLIon, LIe hrsL joint TV series venture between China and Myanmar is hnuIIy reudy Lo uIr. The new TV drama, The Leg- ends of Music, will start broad- casting in Myanmar on April 14 In Sky NeL TV cIunneI. The Film and TV Program Database of the State Council nIormuLIon Om ce oI CIInu and local Shwe Than Lwin Me- dia Co Ltd signed an agreement at the Sky Net TV headquarters on LIe deIIvery oI LIe hIms Lo LIe Myunmur sIde Ior LeIecusL. The story of the drama cen- tres around a Myanmar prince visiting China during the Tang dynusLy over 1,zoo yeur ugo, accompa- nied by a troupe of musical per- formers who travelled thousands of kilome- tres to the then Tang dynastys capital of CIung An. It aims to bring to life the fascinating history of the period, and how the southern Silk Road promoted exchange beLween cIvIIIsuLIons. The series was shot in the an- cient city of Bagan, once home to the imperial palace and a mIgILy empIre. The Chinese new generation idol Lin Gengxin and Korean actress Choo Ja Hyun star In LIe hIm. n LIe hrsL Lwo episodes, there will be action footage, songs and dance as well as natural scenes shot in Myanmar, Chinese state-media reporLs suId. Another Chinese TV series Contradiction of Spouse in Myanmar language was launched in Sky Net channel on MurcI z6. n uddILIon, 11 oLIer special feature and documen- Lury hIms Iuve been dubbed in Myanmar language to be broudcusL by Sky NeL. The Legend of Music, which was funded by Yunnan TV sta- tion, made its debut in China in December zo1. Ahead of the airing, The Leg- ends of Music was premiered at a ceremony in Yangon last week. TIe premIere oI LIe TV series was part of the Experi- ence CIInu - Myunmur Tour. The premier was attended by U Paik Htway, deputy minister for Information, Cui Yuying, deputy minister for the In- IormuLIon Om ce oI LIe SLuLe Council of China, Yang Houlan, Chinese Ambassador to My- anmar, and Zhao Jin, member of Standing Committee of the Chinese Communist Party of Yunnan Province and head of Information Department of the provInce. Zhao expressed appreciation over LIe eorLs oI joInL sIooLIng and production of the TV series InvoIvIng urLIsLs oI boLI sIdes. He said Chinese audiences were moved and responded positively on the web praising the artists role played in the hIm wIen LIe TV serIes wus hrsL uIred by CIInese TV on dIerenL cIunneIs. The Legend of Music has opened a new chapter of cul- tural exchange and cooperation between China and Myanmar, witnessing the friendship between the two peoples, he suId. He said such exchange and cooperation in the cultural sector would continue and ex- pand and enhance the mutual understanding between the two peoples so as to inherit such China- Myanmar friendship generuLIon by generuLIon. U Paik Htway said the joint shooting of the TV series pro- vides exchange and friendship Lo LIe Lwo counLrIes. He suId following the premiere of the TV series would strengthen the China-Myanmar paukphaw (IruLernuI IrIendsIIp). Cuests from both Myanmar and China pose for a group photo during a ceremony to screen the rst China-Myanmar jointIy-shot TV series Im "The Iegend of Music" in Yangon. U A u n g / X in h u a A poster of the drama. A scene from the drama. Shooting of the drama.