Вы находитесь на странице: 1из 32

June 26-July 2, 2014

Myanmar Business Today


mmbiztoday.com
mmbiztoday.com June 26-July 2, 2014| Vol 2, Issue 25 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Myanmar Summary
Contd. P 9...(IMF)
Contd. P 9...(IMF)
Inside MBT
IMI Lps GP Iorecust to S.gpc espite Inutionury Pressore
Prescribes broad-based policy reforms and better economic management
Tom Stayner
T
he International
Monetary Fund
(IMF) has revised
its forecast for Myanmars
economic outlook for this
hscuI yeur, predIcLIng LIe
countrys rapid economic
expansion to continue
despILe InuLIonury pres-
sures.
The Paris-based lender
said Myanmars economic
expansion will reach 8.5
percent this year, after
gross domestic produc-
tion (GDP) rose to 8.25
percent over the 2013-14
hscuI yeur LIuL ended In
March.
In January, the IMF
predicted Myanmars eco-
nomic growth rate would
steady at 7.7 percent by
March 2015.
IMF Resident Repre-
senLuLIve In Myunmur, Yu
Ching Wong said increas-
es in gas and agricultural
production have helped
Myanmar build on the
countrys economic mo-
mentum.
A Iow Lo medIum
growth average of 7-8
percent is sustainable for
a developing country if
they can maintain their
economic stability and
manage macroeconomic
poIIcy Lo conLroI InuLIon-
ury pressures, Yu CI-
ing Wong told Myanmar
Business Today.
M suId InuLIon Is ex-
pected to remain at 6.5
percenL wIIIe cupILuI ow
from foreign investments
and local production con-
tinues to increase.
However, LIe M`s
Myanmar mission chief,
Matt Davies, warned that
without proper economic
management Myanmars
favorable economic out-
look could be undercut.
IscuI und exLernuI
buers remuIn LIIn und
demand-side pressures
on InuLIon und Iurge
cupILuI Inows wIII sLruIn
the still-infant macro-
economic management
LooIs, DuvIes suId.
~_ ._ _ ._ . q:. ._ ~.
q,..~e~._. (IMF) .
, .~ -_ ., .:. . .. :..q.
~..' e._:.q...~~~
., . , ..~ ~:. _., ._ . ... .
_.. .-...:..q.e_e..._
.._~..e:....:.q.,..:
._ . .~ .~ ~ .~~ .
._~:. .,.,.:.._.
Aothorities to Spend $,6o,ooo
to Re-embunk Inle Luke
May Soe San
I
nIe uke wIII see
a K750 million
($767,000) renova-
tion to its embankment
and shores this year
thanks to a grant from the
Shan State government.
The regional govern-
ment received K1.5 billion
($1.5 million) from fees
collected over the past
year from the visitors to
the lake.
U Win Myint, Inntha
Ethnic Minister of Shan
SLuLe, suId, TIe money
will be granted to a tender
winner [who will carry
out the project]. The State
Finance Ministry will dis-
burse the fund in four-
monLI InsLuIImenLs.
In the past the military
collected the foreign en-
try fee charged to visit
the lake but locals were
unaware of how much
money was being used
Ior LIe sLuLe. However,
new HIuLLuw represenLu-
tives elected in 2011 have
established controls over
the proceeds.
To increase revenue
from the lake the price
per foreign entry visit, for
the almost 150,000 peo-
ple who visit the lake each
year, was doubled from
$5 (K5,000) to $10 in last
October.
TIe Iuke Ius suered
from recent deforestation
with silt deposits and un-
conLroIIed gurbuge Inow
forming deposits in the
lake.
~ ....~, .~ ~, .~ e _e .
~ .~~ .q.~~ ~ .:....._
~..,. ~ ~:. .....
~.,_e e. . . ~~ .~ .~ .
..:.._..:.,q_._._..~
~. ._.q, . . :.._~:. q . .
_._ ,e ~. .q~e ~ .~ .q .
.:..q.q:~,_~. .~._.~
.. ~ ._.:._.
~~,~~, . . . ~ ~ ....
~,. .:.q:~._ ._.:.
.:.-_ ._ .:. . .~:~ e
qq._ .~.~..e.qq
._~,~. ~..,. ~ ~
~ ....~, e _e ..q.~~ ~
~.._.q, ._..~.:....
._ _e. ._~: . q . ._._ ,e ~. .q
~e. .q._.
~ ....~, -.q.~.q.
...~ .. .~:_.,.~...:.
._~: ~, ~~ .. .. .. .:.
.:_..~_.~._~..,....:.
.:._ _ ..,:.:.. q.
.,q._ .
A man pushes a cart past shipping containers stacked at a shipping terminal in Yangon. Myanmars GDP
will grow 8.5 percent this year, the IMF said.
D
a
r
io

P
ig
n
a
t
e
lli/
B
lo
o
m
b
e
r
g
Government to Impose Property Tax to
ConLroI und PrIces P-q
DruIL Compuny IsLIng RequIremenLs Ior
TIe Yungon SLock ExcIunge ReveuIed
P-6
Export Strategy Draft Complete,
Awaits Parliamentary Approval P-7
June 26-July 2, 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
Deputy Editor - Aundrea Montao
Email - aundrea.montano@gmail.com
Editor-in-Charge - Wai Linn Kyaw
Email - linnkhant18@gmail.com
Ph - 09 40 157 9090
Regional Editor - Tom Stayner
International Editor - David Ross
Reporters & Contributors
Htun Htun Minn, May Soe San, Kyaw Min, Wai Linn Kyaw,
Aye Myat, Aung Phyo, Zwe Wai, Phyo Thu, David Mayes,
Sherpa Hossainy, Aundrea Montao,
Tom Stayner, David Ross
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
Wai Linn Kyaw, Phyu Maung,
Bone Pyae Sone, Aye Chan Wynn
Advertising
Seint Seint Aye, Moe Hsann Pann, Htet Wai Yan,
Zin Wai Oo, Nay Lin Htike
Advertising Hotline - 09 420 237 625, 09 4211 567 05,
09 31 450 345, 09 250 411 911, 09 2500 18646
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
Bosiness News in BrieI
Govt i nvi tes consultants to help desi gn new
postal ser vi ces
The Ministry of Communications and I nformation
Technology has invited Expressions of I nterest (EoI )
Irom IocuI und IoreIgn hrms Lo provIde consuILuncy Ior
designing a new postal service policy and drafting a new
postal law, the ministry said in an announcement. The
EoI should be sent to the ministry by J une 30.
CI MB bulli sh about Myanmar banki ng li cence
CMB Group Is goIng Lo do wIuLever we cun In LryIng
to get a licence in Myanmar, Nazir Razak, group chief
executive of CI MB Group, told Thai media. Myanmar
is expected to grant as many as 10 licences to foreign
banks to operate their branches in the country. CI MB
Ius operuLed ILs represenLuLIve om ce In Myunmur Ior
17 years. Razak said the bank is also eyeing presence in
every market in the ASEAN region by 2015 and looks
to expand beyond the region into Australia and China.
TIe bunk Is expecLed Lo open ILs hrsL bruncI In uos by
August and hopes to get a licence to operate in Vietnam
this year.
Yangon stops i ssui ng taxi li cences due to heavy
tro c
TIe Yungon RegIon governmenL Ius sLopped IssuIng
LuxI IIcences becuuse oI worsenIng Lrum c congesLIon In
the commercial city, local media reported the Regional
Transport Minister as saying. There are about 80,000
LuxIs runnIng In Yungon, IncIudIng qo,ooo cILy LuxIs
registered with the local authority.
Myanmar to adopt new monetar y poli cy to
stohilise inotion
The government will introduce a new monetary policy
Lo sLubIIIse LIe rIsIng InuLIon In LIe counLry, CenLruI
Bank Deputy Governor Khin Saw Oo said while speak-
Ing In LIe Upper House. SIe suId LIe InuLIon ruLe Iud
risen to 5.76 percent in April 2014, from 5.53 percent
and 1.48 percent respectively in the same month in
2013 and 2012. The monetary policy will include allo-
cating the government budget with World Banks as-
sIsLunce und seIIIng suvIngs cerLIhcuLes LIrougI prIvuLe
banks, she explained.
Myanmar i nvi tes tender s to bui ld Thi lawa
por ts
The Myanmar Ports Authority has announced eight
construction tenders to construct a general cargo port
and a container loading dock using J apanese develop-
ment aid. The port will be part of the Thilawa Special
EconomIc Zone, un IndusLrIuI compIex souLI oI Yun-
gon, and building is due to start this year. The Ministry
of Transport has received $205 million loan from J a-
pan to enlarge the Thilawa port.
Canadi an mi ni ng company to be sued i n My-
anmar
JusLIce TrusL und LIe Myunmur uwyers NeLwork wIII
hIe u IuwsuIL uguInsL CunudIun mIner vunIoe MInes,
wIIcI IuuncIed LIe conLroversIuI eLpuduung Copper
Mine in northwestern Myanmar, local media reported.
The company broke the law and it did not meet interna-
tional standards when it was running the project, Thein
Than Oo of Network was quoted as saying. I vanhoe has
been under intense scrutiny by Canadian civil society
groups for more than 15 years, following widespread
allegations that it has been complicit in human rights
violations and environmental degradation in several of
the worlds most impoverished nations. Mining Watch
Canada detailed allegations of I vanhoes misconduct
In Myunmur In LIe reporL Gruve DIggers, wIIcI wus
published in 2000.
Govt banks to pay forei gn exchange li cence fee
State-owned banks will have to pay foreign exchange
IIcence Iees eecLIve JuIy In IIne wILI uII prIvuLe bunks,
local media reported, referring to central bank sources.
The central bank has imposed this requirement to cre-
uLe u IeveI pIuyIng heId beIore uIIowIng IoreIgn bunks`
operations later this year.
Myanmar Summary
_.,.:.~.e.q..~.~.~~.~.,_.._:~,_~._:,
._ _._~. _._.. ~..~..:.~:. .:~~~,..:.
..,.~:. .~..q..q,~~~ e~..':.._~:. .q._.
....q:... CIMB ~..,.~..._ :._e._e.
~,.~:~...._e ._~.._~:._e _.,.:.~ ~
..,...qqq, _~..:..,._~:. .q._.
_.,.:.._ _._.~ ~~ .~:. ~..,..:...~
.q, ...:....._...,:~ CIMB ~..._._. ~
..,...qqq, _~..:..,_.._e.._.
~..q.~.:.. ~_.:...~.~.:.._ ._.:..
._~...e...._~..:.~ ~..~~......:q.~:
.__e.._. q,~,~...._~.~..q._ q,~,_.~~.
..q:..:_e...'.,._ e:._~:.~...:.~ ._eq..q,
~~~ ...:...._..~:. q....~:._e .q._.
q,~,_.~ Taxi ~,~~~ ., ._....~q_.. ,~,~~~ .:
City Taxi ~_e. .~.~:._~._.
_.,.:~..q._ .._~..e:...~ ~__...q,~~~ .
._~...'..~..~ _._:,.q,...,._e .q._. _.,.:
..~..~:~:..:.._ ..~|..~..~ ~..~,~
~,...,..:.....:.._ ..~.. .~_..:~q,
~.|..'e.._~:. .q._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
3
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
Myanmar Summary
Government to Impose 'Property Tux' to Control Lund Prices
T
he Myanmar Gov-
ernment along
with the regions
and states is set to im-
pose a new property tax
to curb skyrocketing land
prices, a minister said.
The current property
taxation system works
through a levy collected
on all residents living on
land or in a building ac-
cording to a residents
location and income. Re-
gional and State govern-
ments currently levy the
tax for use in regional de-
velopments.
When a property chang-
es hands in Myanmar,
ownership must be reg-
istered with the Urban
und und MunugemenL
Department and tax paid
to the City Development
CommILLee. However,
some real-estate agencies
do not make legal con-
tracts, instead they buy
lands with general power
or special power which
allow for sale without
contract the resulting
failure to collect tax fur-
LIer InuLIng Iund vuIues.
Some busInessmen
bought lots of lands. So,
we will study the inter-
national taxation system
and techniques to control
those who trade lands
and manipulate the land
prIce, U Soe Muung, Un-
ion Minister for the Presi-
denL`s Omce, suId.
We wIII ImpIemenL LIIs
system in discussion with
regional and state par-
liament members, busi-
nessmen and authorities
from relevant regions and
Htun Htun Min &
Phyo Thu
sLuLes, Ie udded.
Reforms to the 2012
urmIund uw IuIIed Lo
address this problem,
uddIng LuxuLIon Lo: seII-
ing, renting, pawning, ex-
changing and transferring
of farmland. But did not
include the collection of
tax on property sales.
To control land prices,
government set the land
price per foot in 2013.
Prices for downtown
LownsIIps In Yungon
reached K150,000 ($150)
to K300,000 ($300), but
actual prices are much
higher, more than dou-
ble in some rural areas of
Yungon.
The Department of In-
ternal Revenues plans to
revise land price per foot
In LIe Yungon ureu Lo brIng
omcIuI Iund prIces In IIne
with current prices and
halt speculative buying.
However, Dr Nyo Nyo
Thin, former professor of
law and parliament mem-
ber, cautioned against
government intervention
saying price hikes could
not be avoided through
simple law enforcement.
We need Lo enucL suIL-
able laws and also watch
by forming the relevant
commILLees. Ie suId.
L Is noL eusy Lo Luke Im-
mediate control over the
land price. To control the
land prices, the govern-
ment must explore more
vIrgIn und vucunL sILes,
Duw YI YI MyIn, econo-
mIsL uL Yungon nsLILuLe
of Economics, said.
Now, LIe eusIesL wuy Lo
muke u prohL Is LIrougI
real estate. This is due to
LIe Iuck oI u sLrong hnun-
cIuI murkeL, sIe udded.
The rise in the price of
land has caused increases
_., .:. ~ . ._.e:.... , .
.:._~ ._. .,. ~ , ... q,
~~~ _._,e. ~....
_ ~ ....~. ~ ~ ~ _ ..:
. . . ~. , (Property Tax)''
~.,.~:~.,.~ .e:..:
.... :.._ _e. _. . ..._.q,
. ~. .|~_:.q.~, _~ ._:,
. ..:,~.:.._e ..~
, .~, _~ ._:,_._ .: . ~, _~ .
.. ...: ~ .~ q ~ ...,..:
. ~ .~: ~._ .~.~.~ ._.:
_~:..~._.
. . . ~. , (Property Tax)
.._.: ~..:~~~ ._.
. ~..:~~~~- ...
~,e.~..' .~.~q:..,.
_e .~:~ . ._ ~. , _e. _
. . . ~. , ~ ...~. .q.:.
. .~:~._.. ...~.e_e.
.q.. . , .. :.~ ~. ._.
._~:. ~,_~.~ ._.:._.
_., .:. ~ . . . ~. , ~
._. ~..:~ ~~ . ...~ .
., . ~:.. .~..'.~:~ .
q._ ~..~.:._e._ ...
~. ~ q:_e~ ~e .:.-~, e .
.~ . ~ . ~ _ e _ ._ . .:.
~. .. -~ . ..'. , ._ . .
~.:._._ . .:. .....: .
._~.,.,.:._e .~:~.
.~~: ..:.~..~.,
_e .,.q.. ~. .~ ~~ ~ ._.
~.~..:~~~~ ~._~.
~. .|~e e . . .~ .~ _ . .
_. ..~ ~_e. ~. , ~, . ~, . .
,_.,_._e ~.,..:.q,
.~.~...:.._. ...:
._. ._.~~,._~..~.
.q: .~e .,. .:.~~ ~ ~. ,
.,._e...: ,~ q:..,..
~..,._._~..~:~._..
_e , ._ ..: q ~ .~ q ._
e ,.~ .~._.:._. .
.:.~. .~.,_ e ._.~~
._ ..: ~e e . . . q ._
e _.,.:.~ ..._._:,.
:..~.q._~~~ .q
._~.q .:. .. ..:~ e ~.
.:.~. ._~.~ ~ ~..:~
q_. . ~e.q:._ ...:.~ ._.
~ ~ .:.~ ~ , .. _ ..e e
~~ .~_.~ ~~ ~ ~e e q .. .
_. . . _. ....~.:._. .~ ._~:
._.e:....:.._ .~_._.
_ e. _ . . .. .. , .. :.~..~,
_.~~.:q._e ~,_~.~
._.:._.
._ .e:.~ ~ ~. :.~_ .:.
_ ~ .~e :.~e . ._ .~ ~ ,
._ ~....q:.~e ._....
...~.:..,. .~ ~~ ~ .
~~:~ . . . ~. , .~:~ .
~ ,_..,..~~ ...:.e.
_ ._ ,e . ~ ...._~ .. ~
.~: ~ e .:.. e .~ ...
~. ~ . . , .q _ ~ ..~ ,
_._ ,e . ~ ....~. .q~e
~.~ ......_.. ..,.~
..:q~.:..:_e..|~e''e
,.~ .~._.:._.
~ . _. ._.e:.:.~ ~q:.~
. ~ . ~ .:. . .:~. ._ e
~ee_.. _._...~,.. ._...
.,.._:,~ ._.~._._.:.
_. . ~. , _:,~ ~ . . , ~._
._.:._...:. ..:q~.|~
_. .~: ._ . .:e:.q..~: .~
. ._..,~..,.:.~ ._._~.
.~:~.._.
in the price of goods due
to high investment costs
for local and foreign manu-
IucLurers, dImcuILIes Ior
foreign investment owing
to the high prices of land,
und dImcuILIes Ior IocuIs In
owning or possessing land,
member of the Parliament
Phyo Min Thein said.
To control the land prices, government set the land price per foot in 2013. Prices for downtown townships in Yangon reached K150,000
($150) to K300,000 ($300), but actual prices are much higher, more than double in some rural areas of Yangon.
W
a
i
L
in
n

K
y
a
w
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Luck oI Qoulity Stonts Locul Cement Indostry
Myanmar Summary
A
s rapid infrastruc-
ture development
continues to in-
crease the demand for
cement, builders are pri-
marily utilising imported
cement due to the low
quality of domestically
produced cement, indus-
try insiders say.
When compared to im-
ported cement, locally
manufactured cement is
lower in terms of quality
but pricier because of the
low volume of production,
making it less desirable.
This phenomenon is the
result of sanctions that
have caused Chinese ma-
chines and spare parts to
replace German machines
in cement manufacturing
factories, said U Ko Ko
Thwe, owner of Taw Win
ConsLrucLIon Co Ld.
ucLorIes ure sLued
with a plethora of un-
skilled workers, who have
little or no knowledge of
cemenL. Hence, LIe quuI-
ity of cement is unsafe
Htun Htun Minn
and there needs to be
improvement in the man-
agement and technical
Iumun cupILuI, Ie LoId
Myanmar Business To-
day.
YeL, LIIs IocuIIy mude
cement is used in making
bricks and building roads.
I n 2012, Myanmar used
about 4 million tonnes of
cement. I ts predicted that
In hve yeurs, LIe usuge oI
cement will increase by
10 percent, Kan Trakul-
hoon, CEO of Thailands
largest cement producer
Siam Cement Group, said
earlier.
Currently, there are
three state-owned and 12
private cement factories,
which have the capac-
ity to produce 4.02 mil-
lion tonnes of cement per
year. Myanmar I nvest-
ment Commission has
given the go ahead to nine
new cement factories to
be constructed by 2015.
As u resuIL oI LIIs de-
velopment, cement pro-
duction rate [is expected
to] be up to 10.53 mil-
IIon Lonnes, suId UnIon
Minister for I ndustry U
Maung Myint.
WILI LIe boom In LIe
construction sector, for-
eign investors will play
a major role in supply-
ing the materials to ac-
complish infrastructure
projects such as building
roads, harbours, hotels
und SEZ consLrucLIon,
he added.
The minister said the in-
vestors have to take into
account the hazardous ef-
fects on health and social
welfare of the chemical
smoke released from us-
ing raw materials related
to cement manufacturing.
There also needs to be
innovation so that the
energy consumption rate
und LIe udverse eecLs oI
carbon production are re-
duced, he added.
SCG said it is going to
establish a $388-million
cement factory near Maw-
lamyine, Mon state, while
I ndonesias state-run Se-
men I ndonesia said it will
build a $200-million ce-
ment factory this year.
ocuI InvesLors ure uIso
building cement factories
in Mandalay region, and
Mon, Kayin and Shan
states.
Myanmar imports ce-
ment mainly from Thai-
land and partly from I n-
donesia, Malaysia and
Bangladesh.
Myanmar Summary
Over o,ooo Ioreigners
Visit Shwedugon in Muy
A
total of 30,436 foreigners visited Shwedagon pa-
goda in May this year, according to the pagodas
Board of Trustees.
During the period, visitors from Thailand topped the
table with 6,700 visitors, followed by the Chinese with
about 3,000 and South Koreans with 2,200.
On an average, 980 foreigners visited per day and
the entrance fee for foreign visitors is $8 meaning a
$240,000 in tourism receipts for Myanmar.
I n April, over 31,000 tourists visited the pagoda, with
5,865 Thais visiting the top tourist attraction in the
Southeast Asian country.
Shwedagon Pagoda is a repository of the best in My-
anmar heritage architecture, sculpture and arts. I t
consists of hundreds of colourful temples, stupas and
sLuLues LIuL reecL LIe urcIILecLuruI eru spunnIng uI-
most 2,500 years.
Aung Phyo
e_e...~.._e.._.
~_ ~._.. ~..:~ ~~ . ~.
. ~ _ . . : . . , . .
~.._e.._ _.,.:.~.,
_e ......_..~..~
_. .:..~ q q: e. ~. . . ~:
. .~~ ~ .. ._ .~, . ,
~~ .,.., . ~. ._ _e. ._~: .
..._...,.q. ..:~
. . .q.. . , .q .:.~ . ...
._.
.~ q ~ .. ._..~ , ~..
.:. ~_..:~q, _....,
_.. .:._ ~~ ...~~.
e..~,.:.. ...~~~~.
_e,_e..:..__e...:._.
.~~.~_..:~q,q.,
.....:. . ~ , ..:.._~: e .
~ . .. ._.. ~. .~ _. .:.
q_.._e.._~:. .q._.
e .~_. _._ ~ .~ ..
._ ..~ ,. :.~~ ~ . . ..
. . .~ . ..:~ . :.qq _ . .
._ ._ . ~.~ ~. ~. q.
_e. ..'.,_.. e .~.~ ~. .:.
~~ ~ _., .:. . q: ..
._.. . , .q .:.~..~ e ._.
q,q ._~:. .q._.
Foreign cement rms have been rushing into Myanmar to take advantage of the huge gap that exists in
terms of cement quality in the local industry. Thailands SCG said it is going to establish a $388-million
cement factory near Mawlamyine, Mon state, while Indonesias state-run Semen Indonesia said it will
build a $200-million cement factory this year.
K
e
r
e
k

W
o
n
g
s
a
/
R
e
u
t
e
r
s
. , . ._ ...~~ . .q ~ ..~.~:.._.:..:..q. .:.
-_._,~,,,' ..:.q:~ ._ .~ . ._~: . .q ~ ..~ _:
.q.~e . . q._ .
~. .|~:.~~ . .:.q:~ ._.~.~....:.q:~
._.~. '~~ ._e ~_. . .q . _. .~, ~ . . ,~~~. .~:
~ q.e:.. . ~~ .q.._. ._.:..:..q.._ .:.q:~ ._
.~ . ._ ~. ., . .. .. ~ .q . _. .~ ._~.. ~..q ~, ..'
.:.~:~ . .q:~....|.~..q~,..'.: ,~,~~~ .~:qq
.._~:. .q._.
.q ~ ..~ .~: ._ _.,.:.-~.~:....q..e:.~..
~..~..~_e..~.~_...:.q_..- . ~:.~ q:., .. . ,_ ..
_:.~ q:.:.._~: .~: _~:._. ...~ . . . ~..:~ ~~ ~~~
.~: ~_ q ~:. , . ..:. . ..| .~~.~: ~~_ ..:~ :.
_.. _e.._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
Mobile Teum to Check Air und Seu Curgoes
T
he increase in My-
anmars imports
has presented the
need to deploy mobile
teams to inspect cargo ar-
riving through the coun-
trys air and waterways
for illegal goods.
Union Minister U Win
Myint said authorities will
organise mobile teams to
inspect cargo being car-
ried into Myanmar via the
countrys air and water
ways, to verify whether
its legal or not.
Usually, the Mobile
Team examines goods
being couriered across
Myanmars borders in ve-
hicles using the countrys
motorways.
Union Minister U Win
MyInL Ius conhrmed u
six-month test period
has been arranged to sur-
vey foreign goods, being
imported across Myan-
mars national boarders,
through alternative trans-
portation routes.
Commerce and Trade
DIrecLor U Ye TIn WIn
said over 80 percent of
Htun Htun Minn Myanmars overseas
Lrude comes vIu IgIL or
shipping carrier services.
BoLI overseus und Io-
cal cargo will have to be
measured simultaneously
Ior LIe pIun Lo succeed,
U Ye TIn WIn suId.
According to interna-
tional rules, the transpor-
tation checking process
starts when cargo con-
tainers are loaded from
ships to ports in Myanmar
vessels carrying foreign
ugs ure noL IncIuded.
Union of Myanmar Fed-
eration of Chambers of
Commerce and I ndustry
(UMFCCI ) J oint Secre-
Lury U Aye wIn suId LIe
changes to Myanmars
cargo management are
needed to develop the
countries industrial sec-
tor.
I we Iuve suIeguurded
laws for our business-
men, there is no way to
hide and protect illegal
goods, JoInL SecreLury U
Aye wIn suId.
Finance Union Minster
Dr In Aung suId IuvIng
more border gates would
help Myanmar better deal
with illegal imports com-
ing into the country.
TIe Yungon regIon op-
erates seven international
cargo ports checking the
arrival of goods being
transported into Myan-
mar tax income has
increased by 20 percent
from these border gates.
Commerce and Trade
DIrecLor U Ye TIn WIn
said adding water and
air transportation routes
to the countrys import
checklists will increase
state income, giving the
counLry more hnuncIuI
revenue to spend in other
sectors.
To cIeck IIIeguI Lrude
through water route
wILIIn zo1q-1 Y, IL Is
arranged to purchase mo-
bile X-ray machines hop-
ing to get more believable
resuILs, U Ye TIn WIn
said.
State trade reached
$24.97 billion in the 2013-
1q hscuI yeur, IncreusIng
from $18.4 billion in the
prevIous hnuncIuI perIod.
I llegal border trade has
also dropped by over 20
percent in Myanmar over
Myanmar Summary
Containers at Asia World Port in Yangon.
S
h
e
r
p
a

H
o
s
s
a
in
y
MobileTeam ~e . ..e:
. .. :.:._e .e e . ..:
.:..:~ , .. _..:.~ ~q:.~
.e e . ..: _. .q .q ... .
~_~ . .. .... :.._ _e. ._~: .
. .. :..q.. ~ .., ..q: .~e .q.
~,_~._:, _._.:.~,_~.
.~._.~ ._.:._.
.~q~ _.,.:.~~.
. ~ , ... .. ~. . ~ .q:~
.,..: ~ , .. _ . .:. ~ .:
. ~ . .. ....,. .:...: q ~
.,._._.,.:.. ~.~
~:._e q . .e q:. . , ..,
~ .q:~ .,._ .q._~: ..
..._~: .. ~ , .. _ ..:.~
~~.,~,.: ...... _...
..q.~~~ ~. ,._.:~.
_~~....:q~:._.._e.
._~:. _._.:.~,_~.~
.._.
~, .~: ~ q ~. ~~ , . e
. q ~ q:. . , .~ oversea . .
~,.~:~ oversea and air
cargo .~: ~._.~_....
q.e ''e . .. :..q.. ~ .., .
.q:.~e.q._:, ,_~:..q.
.. .q~~.~ ._.:._.
the past year, according to
omcIuI duLu.
ruIt Compuny Listing Reqoirements Ior
The Yungon Stock Ixchunge Reveuled
A
t the Myanmar
Business Forum
hosted by KPMG
recently, Shinsuke Goto,
director of Daiwa Securi-
ties Group I nc the com-
pany providing technical
assistance to the Myan-
mar government to es-
tablish the countrys stock
exchange revealed the
draft listing requirements
for companies seeking to
list their I PO when the
exchange becomes opera-
tional next year.
Companies seeking to
IIsL on LIe Yungon SLock
ExcIunge (YSE) wIII be
required to demonstrate
prohLs Ior LIe prevIous
two years or show K10
billion ($10 million) in
market capitalisation,
have a minimum capital
amount of K500 million
($511,000), and have a
minimum of 100 share-
holders where the minor-
ity must account for at
least 10 percent of the to-
Aundrea Montao
tal equity. The corporate
listing requirements are
low in order to accommo-
date smaller businesses,
Shinsuke said.
TIe YSE Is expecLed Lo
be operational by October
2015; however, many an-
alysts have doubts about
the governments ability
to establish policy and a
sumcIenL reguIuLory en-
vironment in such a short
time frame. I n an attempt
to increase assure the au-
dience, Shinsuke Goto
expressed IIs conhdence
in the process and noted
that the Securities and
Exchange Commission
(SEC) is expected to be
formed by mid-J uly and
SEC rules are expected
to be revealed in the next
couple months.
I n addition to the for-
mal listing requirements,
much attention is being
paid to the challenges
companies face in prepar-
ing to establish an I PO.
Myunmur compunIes
who are considering a
listing on the exchange
sIouId hrsL usk II un PO
is the right choice and at
the right time given their
stage of development and
prospecLs, suId YusuIIde
Fujii, managing partner
of KPMG in Myanmar.
Companies preparing
Lo IIsL on LIe YSE need Lo
assess and institute in-
ternationally recognised
standards for accounting,
InLernuI rIsk conLroI, h-
nancial reporting, trans-
parency and strategic
planning.
I nstituting strong cor-
porate governance re-
quIremenLs wIII be dIm-
cult for many businesses
deemed desirable for
listing on the exchange.
These companies face
immense challenges in
terms of human resource
capacity, information
technology, low govern-
ment capacity, and lack
of knowledge on behalf of
the general public.
Additionally, the estab-
lishment of the ASEAN
Economic Community
(AEC) and regional capi-
tal integration will chal-
Ienge LIe YSE, IncreusIng
competition for the nas-
cent exchange.
Companies with the
greatest potential for list-
Ing on LIe YSE wIII come
from banking, agricul-
ture, consumer products,
infrastructure, construc-
tion, manufacturing, and
real estate sectors, said
Fujii.
Myanmar currently
has an over the counter
market (OTC) called the
Myanmar Securities Ex-
change Centre, which
has two companies with
tradable shares, and is ex-
pected to be replaced by
LIe YSE nexL yeur.
While no announce-
ment has been made if
foreign companies will be
uIIowed Lo IIsL on LIe YSE,
much emphasis is being
placed on readying local
companies.
Five companies are ex-
pected to be listed when
LIe YSE IuuncIes In OcLo-
ber of 2015.
Myanmar Summary
Shinsuke Goto, director of Daiwa Securities Group Inc.
K
P
M
G
.,. KPMG . .~|
~ . ~ ~ . ...: _ ~~ ~
_...._ _.,.:..~:~..,.
. .~.~..:...:..q.eq.
~. . ~ ~ .. ._ ., .e q. ~
. . ..: .~ .:. ~ _.:.
._ ~ . ~ .:..:q .~ ._~_:
.._.
q, ~ , ..~: ~ . . , . ~
~~ .~:~ ~ :.~ .~
. q, ., . , .:...: ._ .
.:.q:~ . . ~ ._ ~ . ~ .:.
._ ~. .q-. .q.. . ..:
.~ .:.. .~ .~ _. . ..e
.:.q .,._ .. . .. . ,_ .
.:..~._..._ ~.~.:.
~~ ~ ~, .. . ..: .~ .:.
~_.q,_..q:~ ~.~
~..:.q.,._.q,~,..~:
~..,.~~~ .~:~ ~ :
.~~ . ~ |.. _e .~ ..:
q ~ ._ _e.._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
7
LOCAL BIZ
Ixport Strutegy ruIt Complete,
Awuits Purliumentury Approvul
Myanmar Summary
M
yanmars long-
awaited Na-
tional Export
Strategy (NES) has been
drafted and is awaiting
parliamentary approv-
al, said Daw Thida Win
HLuy, ussIsLunL dIrecLor oI
the Department of Export
Development.
The drafting of the plan,
which started in 2012, is a
response to the need to in-
crease exports by expand-
ing market access for local
producers and products,
and will help Myanmars
rapid growth continue
to gain momentum, said
TIIdu WIn HLuy.
AII Iour sLeps oI LIe
strategy have been fully
drafted. Once we get con-
hrmuLIon Irom LIe govern-
ment we can implement
LIe sLruLegy, sIe udded.
Advisor to the Myanmar
Beans, Pulses and Sesame
Entrepreneurs Associa-
tion, U Soe Win Myint, said
the NES includes strategies
targeting the countrys ag-
riculture, rubber, textiles,
tourism and marine prod-
uct industries.
BeIore LIe NES, beun
and pulse exports were
the main export sector.
Once one NES is ap-
proved, its going to be a
challenge to break into
the market and access the
technology needed to re-
muIn compeLILIve, U Soe
Win Myint said.
The German Federal
Enterprise for Interna-
tional Cooperation (GIZ)
Phyo Thu
provided technical assis-
tance to authorities and
local entrepreneurs draft-
ing the NES.
GIZ policy advisor, Dr
TIn HLoo NuIng, suId us-
ing international organi-
sations other than GIZ in
the future will help the
NES manage export strat-
egies more closely in each
sector.
TIere`s u secLIon wIere
GIZ transfers its opera-
tion to the International
Trude CenLre, Dr TIn
HLoo NuIng suId.
The International Trade
Centre has already be-
gun implementing NES
schemes targeting the
travel and tourism indus-
try in Kayah state.
Secretary of Myanmar
Rubber Plantation and
Production Association,
U Khaing Myint, said the
quality, quantity and op-
eration times of exports
must be supervised for
the national strategy to
succeed.
Once LIe governmenL
approves the NES, there
are many processes which
need Lo be currIed ouL, Ie
said.
_._~.~~,.:.- ...
~~qq.q.. .~,~._.
~ . .q.~~ ~ ~. .q. ~e
_._~.. .~,..,.q.:.
....|..q..:...: ~..
.:..e:- e:. ~,..~,.~
. .~: ~. .q~.,_e .:._
.~ ~ :.~~ . ~~_ _.
. :.. ._ _e. ._~: . ~ , . e
. _. ~ .q. .. ._:,. .~
.:~ , _~:..q.. ...'. ~:
~.._.~ ._.:._.
. . ~ , ..q.. . ~. ...
. . . .q.. _. .. :..|_. .~. .q
q ~~__..~qe_...:.q
. . ~ , .~~ . .~ ..: q ~
.:...:_e..|~e''e e.~
._.:._.
~...:.-e:-e:.~,..
~,. (NES) ~ ~~ ....
.~.q..._.. .~,~_~
~.:.~.:q..: _._~.
~ ~ , .:.~ e .. . ~ , .~
_ . .:.._~: . . q._ .
NES ~ .q~~, ....
.e e: ~ ~ , .. .~: ~
~ , .q: :. ~~~ ~_
.:..|~~: _.,.:.- .q.
.:...,.~._. _..
:.._.
.~q~ _.....,_._e...:
NES ~~~ ~..q _._~.
. . , .q .:.~_. . . , .
..q....:.~~~ :.,
_., .:. ...| ...: q ~ .q.~e
~._. (GIZ) . ,_.._:..
~~~_...:.._~:. .q
._.
GIZ ~ .~ . ~_.:..
~~:~e~._..~.| NES
~~~ ..~_.:eq.|
~e. Sector ~.~ ~...
. ~ ..: q ~ . :.e q .|~e .
GIZ ~., .~~:~,.e
.-e_:, ITC ~ ..,...
~:~,.:.~~..._.q.|
~e''e GIZ . .~|..q.q:
~_~ .... . ..|~ ~:~ .
.~ ._.:._.
Iish Iood Prices Increuse us Chinu
Imports More Ruw Muteriuls
T
he local Fish Food
Producers Asso-
ciation announced
that it has decided to
ImporL Iood Ior hsI und
prawn rather than man-
ufacturing locally, re-
sponding to a hike in local
prices.
Increasing demand for
hsI Iood ruw muLerIuIs
from China has driven up
LIe prIce oI hsI Iood over
the past year.
In June 2013, the price
of one viss (1.6 kg) of
sesame, which is used
Lo muke hsI Iood, wus
around K1,200-1,400
($1.2-$1.4) but this year
has increased to K1,450-
1,500 ($1.4-$1.5).
CurrenLIy, LIe IocuI hsI-
eries import sesame and
bean from India, Argen-
tina, Brazil and America
Lo muke hsI Ioods.
mporLIng IoreIgn hsI
food will support Myan-
mur`s dwIndIIng hsIery
producLIon, suId Dr TIeL
Hmuu, cIuIrperson oI LIe
association.
With weak government
assistance, the number
of entrepreneurs in the
livestock industry has de-
creased, directly impact-
Ing LIe hsI Iood murkeL,
he added.
TIere ure muny reusons
for the price hike. Trans-
portation costs and the de-
mand from China are part
oI LIe reuson, suId u IIve-
stock businessman.
Since the new govern-
ment came to power, the
May Soe San ruLe oI hsI Iood ruw mu-
terial exports to China
Ius Increused sIgnIhcunL-
ly, which has caused the
price hikes, the entrepre-
neur criticised.
Myanmar Summary
|... ._..q.. . , .~ ~.:
.. .. , ._ . ~~ .~ q ._
...e~ ...e~.:..,q:~
_ ._ .. .. .. , ..~ .:._
~.:.:.~ _._ ~ .. ~ . .
. :.._ _ e. ._ ~: . |. . . ,
~.:~,_~..~...q:..
..:.~... .q._.
~.:.... , ._. ~~ .~q
._ _._~.. ... ...e~
.,q:.:.~ _._.. ....,.
.~.:._ ...e~ ...e~
.:.~ ~ . ._. ._e ~ . . .
..: ~.,._ |... ._..q.
..,..:.~~~ ~.:~
~~_e..:.._~:. ~..|
~. .-~ _ ..|~ ~:.~ ..
~ ._.:._.
.~q~ |.~.:~,_~..
~..._ .~....:.
.: ....,.~...~q..:
._ . . . .e~ .. .. , ..:.. :
. .:. :_. ~~ .~ q .,_. .
~. ~~:._e . ~ . .. .:.
....,...:~q_...: ..._.
.q...,...~..:...:
~ .:_ . . .. .~ ~ ~~ .
~.:~ , _~. . ~ ._ q:.
.e~_..~._~:_e.._.
.~q...e~....,..: _...
._ . .~ , .~~ .~ ~. . .:
. ~~~~,~~ ~.q.q:.
e...~,.~~. ~...:
. ~,~~~~ ~.~
_.~~.,._.
S
o
e

Z
e
y
a

T
u
n
/
R
e
u
t
e
r
s
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
Airlines Resort to Overseus Ioel
oe to Price ispurity
Myanmar Summary
A
$1 per gallon dif-
ference in the price
of jet fuel between
Myanmar and its neigh-
bours is causing domestic
and international airlines
to increasingly look out-
side for cheaper prices.
The issue of fuel costs is
considered to be a major
issue in the competitive-
ness of Myanmar domes-
tic airlines.
WIIIe yIng overseus,
even to Thailand, one
plane uses over 10,000
gallons of fuel. Domestic
airplane fuel is a dollar
more expensive than for-
eign prices, which causes
refuelling in Myanmar to
cosL un exLru $1o,ooo,
Mandalay Airlines Chair-
mun U KIIn Muung uLL
said.
No busIness cun Ignore
Phyu Thit Lwin this. Therefore, we refuel
wIen we reucI TIuIIund,
he said.
Many airlines have pe-
titioned the government
to remedy this disparity
in prices, with the govern-
ment agreeing to address
the income imbalance.
In May, the Myanma
Petroleum Products En-
terprise (MPPE) invited
foreign companies to
form a joint venture to
improve its jet fuel distri-
bution system.
The MPPE, which is re-
sponsible for carrying out
the retail and wholesale
distribution of petroleum
products under the Min-
istry of Energy (MOE),
currently distributes
about 127 million litres
of jet fuel a year at 11 air-
ports around Myanmar,
IncIudIng Yungon, Mun-
dalay and Nay Pyi Taw.
However, LIe Lender wus
cuIIed Ior onIy Yungon n-
ternational Airport.
Border Trude with Neighboors
rops Ixcept with Chinu
Myanmar Summary
B
order trade between
Myanmar and most
of its neighbours
has slowed, according to
the Department of Com-
merce and Consumer Af-
fairs (DCCA).
Director of DCCA U
Tay Za Aung Win said,
Border Lrude wILI CIInu
remains normal but due
to instabilities in other
countries the trade has
suered. Some ImporLs
from Thailand have de-
creased and trade has
dwindled especially in
Myuwuddy.
During April-May, ex-
ports through border
crossings with Bangla-
desh, China, India and
Thailand increased by
$116.97 million, while
imports increased only
$7.66 million compared
with the same period last
year, according to the
DCCA. However, LIe rIse
is attributed to only the
growth in Myanmar-Chi-
na border trade.
The coup in Thailand
recently caused trade to
be restricted to daylight
hours at border crossings
between Myanmar and
Htun Htun Min Thailand, causing a fall in
exchange of $12.9 million
compared to the same
time last year.
U MyInL wIn, dIrecLor
of Department of Trade
PoIIcy, suId, Trude wILI
Thailand has now de-
creased. We gained yearly
increases in trade because
of our easing of regula-
tions, but have not in-
creased the value of those
commodities.
I we don`L vuIue-udd
our exports we will be in
LroubIe, Ie suId.
A border row with In-
dia and also its recently-
concluded general election
have also caused a fall in
trade between the two na-
tions. Frequent road and
bridge blockages have re-
duced trade value by $8.02
million, DCCA data shows.
Trade with Bangladesh,
worth only $1.96 million
over the April-May pe-
riod, has also fallen from
its high in 2012 due to se-
curity and border issues
between the two nations.
In April and May, bor-
der trade between China
and Thailand was worth
$571.557 million and
$69.109 million respec-
tively.
Myanmar Summary
Gov't to OHer Lp to $gk to Iish Breeders;
Iyes the Ilosive $,oom Irom Ixports
T
he government
wIII oer Iouns oI
up to K5 million
($5,000) to breeders in-
terested in entering the
aquaculture industry in
a bid to counteract the
sIIdIng domesLIc hsIIng
industry and collapse in
catch-sizes due to over
hsIIng.
The loan can now be
used Lo oseL proIIbI-
tive costs of brick or soil
Ior hsI Lunks, wIIcI cosL
upwards of K10 million,
May Soe San &
Phyu Thit Lwin
_., .:. .:.. _._ ..
. ., .._... .,..: ..._~: .
. ..:.. : _._ ~ ...e: .
...._ _._.q ..e:.
.... , .~ ~. |., . ~.
..'.:., ..:..,..:._~:
_._ ...._~: .. ..:.~
. . _ e_ .,q._e . .:..
~..: _._...: ..~.,q
._e _._.. . .,..,..:
..._~: .. ..:. . . q._ .
. . .:.. ~ . .:.
_._ .. . .~ .,..:._~:
~..q~.,_e _._.. ..
._~:....:.. ..e.|~
.q.qq..,.~..:._. ,.,:
.,._ . ._~.~~ ~ _ . .
~ ~ .~ .... ._~: .~ ~ _.
:.._~:..q._.
and is widely seen as an
attempt to boost domes-
LIcuIIy Iurmed hsI num-
bers.
The fall in salt and
IresIwuLer hsI numbers,
combined with issues in
transportation and pro-
cessIng, Ius seen LIe hsI
export revenues fall from
a high of $650 million to
$536 million in 2013-14.
This falls short of the
$;oo mIIIIon LurgeL oI hsI
exports from the Myan-
mar Fishery Federation
(MFF).
n zoo6, we exporLed
$;oo mIIIIon worLI oI hsI
_., .:. . .:... q
~.e ..~~ ,e..
~,.e.q.~ ..:.....:.
q.,_.. ...~,.e.
.:. ~...,._~:. ~..,.
.q: .~e .q.. .:.. .. .q.q:
..._:,. .~.qq._.
...,e..~,.e
.~.._..._ ..~
..~.. ~:~:....._~:
_.,.:.,e..~.:.~
.,~_.: ~,.e.q_..
_~ ~ ~ , . e _ .q..:
._ ~: _ e. ._ .~~,~~
_:..~. -_... ...~,
~ ... ~,.e..:
e... ~.:.~~:.~
~..q ~, ..'.:., .~ ...
, ~...._~:. ~..,.
.q: .~e .q.. .:.. .. .q.q:
..._:,. .q._.
~,~,e..~.~: _..,
~e .~,~,e.....~ ..
.. ..| ~..: ..~
~.~..~.._..~ ,_.
.:.~e.~.~ _.~~~~
~,.e.~~e''e ~..,.
.q: .~e .q.. .:.. .. .q.q:
.. ._:, , _~:..q.. . ..~~
.~:~.~ ._.:._.
but since then tonnage
has fallen every year. This
is because the amount
we can catch at sea has
IuIIen, depuLy cIuIrmun
of the MFF, Daw Toe
Nandar Tin, said.
Our InIund und murI-
time waters possess
pIenLIIuI hsI; Iowever,
we require high quality
products for export and
we currently dont have
LIuL, sIe suId.
Breeders can obtain the
loan through an applica-
tion to the ministry with
the interest and charges
totaling K1.3 million
($1,300).
TIe new Iouns oered
by the Myanmar gov-
ernment are expected to
boost the countrys trou-
bIed hsIIng IndusLry,
shifting it towards man-
aged catch farms.
The government also
moved to protect the do-
mesLIc hsIIng IndusLry
this year, banning all for-
eIgn-owned hsIIng ves-
sels from its waters, in a
bid to stop rampant ille-
guI hsIIng.
This move may see do-
mesLIc hsI producLIon In-
crease; however, there re-
main further issues in the
delivery of fresh or frozen
hsI Irom IucLorIes In Yun-
gons industrial zones due
to power outages.
.. ._..q..q. . , .. .~.
.~...e_e..q.~,_~._:,.
|... ._.._ . . , .. . ~
..:.~:. |..:..e:~.e:~
_ .. ._.._ . .|~. ~. . , .
~ ~ .. ..... :.._ _ e.
._~: . |.. . , . .. ._:,.
, _~:..q.. ... . , .~ .
-._.:_~:..~~q .q._.
.~ q ~. , ~ .. ._..q.
.q. . , .. .~..~ ...e _e.
.q.~,_~._:,_ q,...:.q.,
..:._~: ~....:.|..:.
.e:~ ._ . . , .q . :.~
...: . : . . . _ . .| ._ e
..:~ . :~ _. . |.. . , .
..._:,. ._..|~ .~.
.,. ~ ~....:..__e._..
._._~..|.._.. :.q,
..~. .~...:~...
.:..__e.~: ~~..,.~.,
_e ~ ~. ~~,..:..
..|._ ....|. ~, ~.~.
.....q._e .q._.
W
a
i
L
in
n

K
y
a
w
A Myanmar Airways International (MAI) aircraft refuels at Yangon International Airport.
S
h
e
r
p
a

H
o
s
s
a
in
y
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
9
Myanmar Summary
From page ...(IMF) From page ...(IMF)
Myunmur Gus Ixports Seen Rising on
Rumping Lp oI New Chinu Pipeline
Aung Hla Tun
M
yanmars earnings
from natural gas ex-
porLs IeII In LIe IusL hs-
cal year as more of the resource
was consumed domestically
but shipments of greater vol-
umes to China as a new pipeline
comes up to speed are expected
to boost earnings this year.
Myanmar earned $3.299 bil-
lion from the export of gas
during the 2013-14 (April/
MurcI) hscuI yeur, down Irom
$3.666 billion in 2012-13 and
compared to $3.502 billion in
2011-2012 and $580 million in
2003-2004, according to data
released by the state-run Cen-
tral Statistical Organisation
(CSO).
Gas exports are a crucial rev-
enue source for the Southeast
Asian nation, accounting for
nearly 30 percent of its total
exports of $11.204 billion in the
IusL hscuI yeur.
Win Maw, a senior ener-
gy mInIsLry omcIuI, suId LIe
drop In exporLs In LIe IusL hs-
cal year was due to the alloca-
tion of more gas for domestic
consumption after redrawing
the agreement with Thailands
PTT, previously the sole buyer
oI gus Irom osIore bIocks In
the Mottama Sea in southern
Myanmar.
He suId u smuII umounL oI
the gas was exported during
2013-2014 to energy-hungry
neighbour China but more will
be exported this year as a new
cross-counLry pIpeIIne Is hIIed
to capacity.
We sLurLed seIIIng gus Irom
RukIIne OsIore BIocks Lo
China through the 793 km-long
cross-country pipeline around
the end of last year, but the
amount was rather small since
it was not technically feasible to
send much through a new pipe-
IIne, WIn Muw LoId ReuLers.
TecInIcuIIy, we need Lo hII up
a new pipeline with gas gradu-
ally and it takes about a year to
hII Lo cupucILy. Around LIe end
this year, well be able to trans-
port to China through the pipe-
IIne Lo IuII cupucILy, Ie suId.
Domestic power consump-
tion in Myanmar has been ris-
ing steeply as the country has
undertaken economic reforms
since a quasi-military govern-
menL Look omce In zo11 uILer
neurIy hve decudes oI mIIILury
rule.
According to CSO data, total
generation of electric power
durIng LIe IusL hscuI yeur wus
13.048 billion kwh, up from
10.964 billion kwh in the 2012-
1 hscuI yeur und 8.6z bIIIIon
kwh in 2011-2012.
Generation by gas was 2.794
bIIIIon kwI durIng LIe IusL hs-
cal, up from 2.377 billion kwh in
2012-13 and 1.763 billion kwh
in 2011-2012.
As LIe omcIuI duLu sIows, do-
mestic demand for electricity is
growing speedily, but we have
prepared to increase generation
Close supervision needs
to be paid to infrastruc-
ture to ensure the coun-
trys modernisation is
properly regulated, he
added.
He suId Myunmur Is
well placed to build on
its recent economic re-
forms and embark on an
extended period of rapid
growth, emulating its re-
gional peers.
EnsurIng LIIs growLI
is sustainable and in-
clusive requires deci-
sive implementation of
a broad range of policies
und sLrucLuruI reIorms,
Davies said.
After decades of mis-
management under the
repressive junta, the new
regime headed by Presi-
dent U Thein Sein has
introduced nationwide
economic and political
reforms since coming to
power in 2011.
According to the IMF,
LIe hscuI dehcIL Is ex-
pected to remain consist-
ent with the governments
hve percenL oI GDP dehcIL
target in large part due
Lo one-o revenues Irom
telecommunications
licences.
Yu CIIng Wong suId
despILe hscuI rIsks, sIe
expects the countrys
strong economic outlook
to increase international
investment interest in the
developing nation.
DeveIopmenLs In LIe
communications, agricul-
ture and mining sector
can increase investment
conhdence und expund LIe
countrys trade opportuni-
LIes, Yu CIIng Wong suId.
With more foreign banks
set to enter the countrys
economic framework, the
rapid economic growth
oI Myunmur`s hnuncIuI
sector is expected to con-
to meet the demand without af-
IecLIng gus exporLs, u senIor oI-
hcIuI Irom LIe MInIsLry oI EIec-
tric Power told Reuters. Reuters
tinue.
Davies said the IMF will
work closely with authori-
ties to ensure expansion
demands on Myanmars
macroeconomic policy
dont outweigh the coun-
trys supervision capacity.
mpIemenLIng mod-
ernised prudential regu-
lations for all banks as
soon as possible will lay
the foundation for the
development of a sound
hnuncIuI sysLem.
IMF . .._~..e:....,.
~.,_e ._.:.q..._....
.:.. _._ ~ . ~ ~ , ~ .~~
.:._.~. .q......
_..:.._~~~ ' ...
q:..,.~q .,.._e.,
. , .:...: ._ .IMF-_ .,
.:..q:~_~.~~ Matt
Davis. . ..: ._ . . ., . . .
q .|~. .. :..q.. :..: ~.
._~:..~ ...:.._.
_._~....._.~~.:. ._~:
_., .:. -e. _: .q...~~.
.:~.:~ . ~ . . .~ . ..:
~. ..: ._. ~,~.. ..:~
.:.. :~ . . . ~~ .:~ . . ~ . . .
:.. ~ . . .:.._ e. . . ~~ .~
_.~~.,...qq.:...__e.._.
_...._-_...~.~ _. .. .. ._
~~,~~, _:..~~._.,.:
. ~.,_ e .:~.:~ . ~ . .
. ~..q ~, ..'.: , ...
. e qq._.. ~~~~, _:
.q...~ ~..q~,..'.: , ...
''' .eqq.~: ~~~~~
~ ~..q~, ..'.: , ... ~
.e . ~~,~~, _:.q...
~ ~..q ~, ..'.: ., . ~
qq.._~:. ~..q. Central
Statistical Organization -
.:q..:.~q .q._.
The Chinese gas pipeline in Rakhine state.
K
y
a
w

M
in
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Robber Ixporters Iye Jupun
to Boost Ixports
Myanmar Summary
T
he Myanmar Rub-
ber Planters and
Manufacturers As-
sociation (MRPMA) says
Japan is the next logical
step in the export of My-
anmars rubber and latex
products.
Amidst the falling price
of rubber, gross national
rubber exports are esti-
mated to reach 100,000
tonnes by the end of this
hnuncIuI yeur.
We beIIeve LIe Euro-
pean and global economic
crisis, as well as ample
Chinese stockpiles are
Phyo Thu IuvIng u depressIng eecL
on rubber prices.
AILIougI IocuI pro-
duction has increased,
exports have not reached
desIred IeveIs. suId U
Khing Myint, secretary of
the MRPMA.
To exporL Lo Jupun we
must increase the quanti-
ty and quality of our rub-
ber. At the moment we
have a low quality prod-
uct going for $400-500
less per tonne compared
Lo InLernuLIonuI prIces
he said.
The current rubber har-
vest of 500,000 acres
planted mainly in Mon
and Kayin state and Than-
intharyi region have
yielded latex harvests ris-
ing to 160,000 tonnes this
year.
Current plans for a new
export strategy have been
hnuIIsed und IL Is beIIeved
it will boost rubber ex-
ports, which last year fell
12,000 tonnes short of
the 95,000-tonne target.
Wuste-red Power Plunts
Iuce eluy
Myanmar Summary
D
elays are expected
in construction of
Lwo wusLe-hred
power pIunLs In Yungon
as import permits from
the Myanmar Investment
Commission (MIC) for the
required machinery have
not been forthcoming.
Yungon CILy DeveIop-
menL Compuny (YCDC),
Chosun Korea Co and
Zeyu & AssocIuLed Co Ld
signed a deal to produce
electricity from waste at
Dawei Chaung and Thein-
pIn In Yungon In ebru-
ary.
TIe MC Ius noL deIIv-
ered import permits, so
we are unable to start. As
soon as we get the permits
we will be able to begin
consLrucLIon, U TIun
wIn Oo, Ieud oI LIe De-
partment of Pollution
Phyu Thit Lwin Control and Cleansing at
YCDC, suId.
A total of $200 million
will be spent on the con-
struction and operation
of the generator facility,
construction is expected
to take two years and test-
ing an additional three
months.
When fully operational
it is expected the gen-
erators will produce 45.4
megawatts (MW), with
electricity to be sold to
Yungon EIecLrIc SuppIy
Bourd (YESB) Ior K1o
($0.15) per unit, largely
for industrial use.
Further discussion as
Lo LIe sIure oI LIe prohLs
from the 25-year deal will
be IeId beLween YESB und
the companies involved.
We Iuve cooperuLed
with foreign experts to
ensure smoke and waste
water from the generators
is least harmful to the en-
vIronmenL, U Zeyu TIuru
Mon, executive director of
Zeyu & AssocIuLes Co Ld,
said.
Vietnumese Intrepreneors
Iye Myunmur Gem
Myanmar Summary
T
he joint secretary
of Union of Myan-
mar Federation of
Chambers of Commerce
and Industry (UMFCCI)
U Myo Thant says there is
growing interest from Vi-
etnamese entrepreneurs
in the Myanmar gem in-
dustry.
Vietnamese business-
men came to the Myan-
mar Gems Emporium
held from May 26 to June
7 to seek investment op-
portunities in the sector.
VIeLnum wIII exporL
jewellery after purchas-
ing Myanmar jade lots
and manufacturing value-
udded producL, U Myo
Thant said.
Kyaw Min The increased invest-
ment interest in the gem
industry comes as more
Vietnamese entrepre-
neurs try to penetrate
Myanmars consumer
market.
Joint Secretary U Than
Aung Kyaw said the food
industry is another key
sector being eyed by Eu-
ropean and Asian coun-
tries as a promising in-
vestment opportunity.
The 2014 Vietnam-My-
anmar Trade and Tour-
ism Fair will be held from
June 26-30 at Tatmadaw
HuII.
The fair will feature
over 80 Vietnamese busi-
nesses in the foods, plas-
tic and electronic items
sector in nearly 100 stalls.
_ ., .: .~ :~ . ~ q~,:
. . , ..:.. _._ ~ ..:...:~
~ , . . , ..:.~ - e~ ,.
. .. :..q.. . , .q .:.~ q .. .
_. . . q, . ~ ~ .:..~ q ._~: .
UMFCCI . ~e~~~.
.q.. . ....,~ ._.:._.
- e~ ,. . .. :..q.. . , .q .:.
._.~:~.~q~,:..,.
.:.~ q..._...q,~~~
.. ' q~. ~, q~.,~
.,_ ._.~:~ ~.._....
._ _.,.:.~:~.~q~,:
_.. ~ . :..q:~ .. .:. ._ .
.:...:~ ~ , . . , ..:.~
q..._...q, _.,.:.~
e...~~. ...~,.._.
.:.~ ...~ ~ . .~.,_.. .
. :.q, q ._~: .._ . . q._ .
~. ..:..e:- e:. ~ ,
.:q.~~.._e.._.q::
~ . . ~ e. _:. . ~ , ~
~, . , ~. . , ..::.._~: .
_.,.:..q::.~..~
....:.~... .q._.
_ ._ ~ . ~ . . . . . .
~ .~~ .:...e ~q:.~
~ . . .:q .. :. , .:.~ ~~ .
_e...:....:.~..,.
..e ~..q~.,, .~..,
... ~e ' ' e e . ~. . .
~~..q.. . .. _. ~ ._.:
._.
.q: :. ~ .. ~ . . . ._
.~q~ .~..-~ |..,.
., q _. .~... ~ -~. . ..: .
.~: q .,q:~. . . ~, ~. . , .
._ .:~ ..: .~~ ~ ~
.,.q.,._~:. e.~...
.q._.
_.,.:.~.,_e .~:.
....q:. -e~,. ~.,.
q :. ~ q.e:.. .:.. ~ . .
._ .q::.:.~ ~.~:.
~..~q_.. ...~~~..
~_e. .,.~ .q..e:.
._~:. .q._.
:.~e ..: . , . ~
~ .,..~.~. ......
~..q,~~~ q,~,_.
.~: ._ . .:e:.q.~ . ~
. :. , ~ q . e:. ~ . ~ .
Zeya & Associates Co.,Ltd
~. ..,...:~.:..
BOT ~ _. .. ._ .e.e: ~|q .
. .~ .~ ~ .~ . ~ .q. .
_. ._e. ..: ._ . ~. .|. . , .
. .:..~ ..: q ~ q, ~~ ~
~. ._.q._ .. _ ..:.~:. .
_.:.. ~ . .q, MIC. . _..~
.q...._e . . , .~.~: ~
_.e:...:..._~,_~:.,
q._~:. YCDC .~~,.~
, .. . ..q.. ., q ..q.
_:,. .q._.
D
im
a
s
A
r
d
ia
n
/
B
lo
o
m
b
e
r
g
W
M
C
S
o
e

Z
e
y
a

T
u
n
/
R
e
u
t
e
r
s
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
11
Myanmar Summary
Contd. P z...(Power Is The Key)
Contd. P z...(Power Is The Key)
Myunmur: Power Is The Key {Purt I)
M
y a n m a r s
e m e r g e n c e
in the last 24
months as Southeast Asias
most exciting business
opportunity has rarely
been out of the press.
It has a large, youthful
population, a strategically
advantageous geographical
location within the ASEAN
community and, most
importantly following
decades of authoritarian
rule, a renewed desire to
undertake the political
and economic reforms
necessary to position itself
as a key economy in the
region.
Ike uny deveIopIng
economy, one of the most
important building blocks
for Myanmars economic
development will be access
to electricity. Without
power, Myanmars industry
will not reach its full
potential. In this article we
outline some of the reasons
why Myanmars power
sector has attracted the
interest of the international
projecL hnunce communILy
and provide an overview of
the key challenges that the
power sector is facing.
Oppor tuni ti es
Strong demand and
potential growth
Presently, only 30
percent of Myanmars
population have access
to electricity (with that
percentage decreasing to
around 6 percent in rural
areas) and there were
demonstrations last year
In Yungon uguInsL roIIIng
power cuts. Power cuts
and brown-outs are an
unfortunate feature of
daily life, as anyone who
has visited the city this
year will be aware. The
power sector is therefore
a top priority for the
government, and the
latest announced goal is
to increase capacity to
20,000MW by the year
2030 a monumental
plan given the current
installed capacity of only
4,000MW.
The government also
plans to revise the
existing electricity law
(dating from 1984, it
Nathan Dodd &
Ben Thompson
was enacted during the
years of isolation), and is
working with the Asian
Development Bank to
understand the scope of
this challenging task. The
government is also in the
process of drafting a new
energy policy, through
the National Energy
Management Committee.
In terms of fuel sources,
gus-hred power projecLs
have seen the most initial
activity. The 120MW
Ahlone power project,
being developed by Toyo
Thai, is one of the most
progressed power projects
involving international
sponsors, with 80MW
already being dispatched.
OLIer sIgnIhcunL projecLs
under development
include a 500MW gas-
hred power projecL In
Thakayta province, being
developed by a South
Korean consortium, and
three locally developed
power projects of 50MW
each.
Myanmar also has
sIgnIhcunL Iydropower
potential of about
100,000MW, with
around 40,000MW of
hydropower having so
Iur been IdenLIhed Ior
possible development.
Hydropower projecLs
have their own
challenges, however, due
to seasonality of power
suppIy und sIgnIhcunL
resettlement issues.
The distance of the
hydropower resource
from the main demand
cenLre oI Yungon Is
also an issue, with
sIgnIhcunL upgrudIng
of the transmission
network required to avoid
substantial transmission
losses. As such, there
is a recognition by
the government that
hydropower (which
currently accounts for the
bulk of the countrys base-
load) may be better suited
to peak load supply, with
thermal power capacity
being stepped up to
provide base-load.
Other renewables could
uIso pIuy u sIgnIhcunL
role, particularly micro
power projects for smaller
o-grId sysLems In ruruI
areas. Suitable sites
for solar and biomass
power projects have been
IdenLIhed LIrougIouL
LIe counLry. However,
a successful renewables
sector typically requires
a solid underlying
regulatory framework,
which Myanmar does not
yeL Iuve - u Ieed-In LurI
for example.
Gover nment funds
li mi ted
Ike muny emergIng
markets, and indeed
some more developed
markets, government
funds are currently over-
stretched. There is simply
not the cash available
in the public purse to
make the substantial
investments required
to upgrade Myanmars
power infrastructure in
order to keep pace with its
economic development.
While government-to-
government lending
Is hIIIng LIe sIorL-
term gap, the private
sector is going to have a
sIgnIhcunL roIe Lo pIuy In
injecting the necessary
capital, and that will be
by means of both private
company investment
as well as international
bank funding. The most
likely form of funding
for the power sector is
projecL hnunce, bucked
by multilaterals or
export credit agencies.
The question remains
however, how great is
the commercial lender
appetite to provide project
hnunce Lo Myunmur?
Keen i nter est fr om
i nter nati onal
banki ng sector
In spite of the
challenges, there is
relatively strong interest
from the international
lending community in
Myanmar; the challenge
is to convert this interest
into debt funding
for suitable projects.
Myanmar presents a new
frontier market in the
Southeast Asia region
for the international
banks, especially as
markets such as Thailand
and the Philippines are
increasingly dominated
by strong local banks.
The international banks
know that the lender that
takes a leading role in the
hrsL mujor power projecL
hnuncIng In Myunmur
wIII Iuve u greuLer prohIe
when the sector expands.
Many of the key regional
and international project
hnunce bunks Iuve
established representative
omces In Yungon und u
number of them now have
a clear mandate to lend
provided it is to the right
project.
Prople for eorlg
mover s
The same early
mover advantage is
being pursued even
more aggressively by
international sponsors
seeking to gain
recognition with the
various governmental
and local players in the
market, which is going
to be key in getting deals
done in Myanmar. Some
companies are more
cautious than others.
Some will wait for
opportunities to invest
by acquiring shares in
projects that the more
bullish early movers have
developed.
Chinese, Japanese,
South Korean, Thai
and Singaporean
companies are looking
at this market. China has
dominated investment
in Myanmar in recent
years, particularly for
cross-border hydropower
schemes. Although
Myanmar appears to want
to loosen its reliance on
its powerful neighbour,
Chinese investment
und Inuence Is IIkeIy
Lo remuIn sIgnIhcunL.
Through institutions such
as Japan International
Cooperation Agency
(JICA), the worlds largest
bilateral aid agency,
Japan has been a key
provider of development
hnunce und cupucILy
building assistance to
Myanmar over the last
12 months, leaving the
Japanese well-positioned
with the government.
The South Koreans have
also been key investors
in the ASEAN region
in recent years and are
similarly intent on gaining
a foothold in Myanmar.
The Korean Development
Bank is showing early
interest, as have a number
of South Korean power
deveIopers. However,
at a government-to-
government level, we are
not seeing the same level
of investment as that
oered by LIe Jupunese.
Thailand has a long
history with Myanmar and,
although geographically
close, the relationship
between the countries is
also tinged with a healthy
rivalry. Thailands power
sector is, however, one
of the success stories of
South-East Asia over the
last 20 years. With Thai
APR Energy`s 1UUMW power pIant in MandaIay became the rst American investment in Myanmar`s
investment-starved power sector.
W
a
i
L
in
n

K
y
a
w

The power sector is a top


priority for the government,
and the latest announced
goal is to increase capacity
to 20,000MW by the year 2030 a
monumental plan given the current
installed capacity of only 4,000MW.
_., .:. -~ .~~ . ._
_...._ , .~~. ~.q
.~: ~:q -. ~ . . q :.e e
q:~.~:... ...:..q.~.
~...~_e. q:..:._.
. ~ .q e q e ._ . ..q
.e:-e:~q ~~._e.,.
.._ .~~~.,~:.q
..: ~:.e~e~.~.
. _e. ._ ~_. . . ..| ..:.. :
~:~:q .,..~:~~q.,
q:. ..q. ...:..q._._.
._ .: .. . .:._ e ...~ .
. .. :..q.~.~ ~.:_e. . ._
..q.:..:.q.:.,._.
~_.:.e _e .. ...~ ~ .:.~
. . _., .: . .. :..q.e _e .~ .~~
.q.~~~ ~.q..|._ ~_
..:~ .q. . . , . . :. ~
.. .. .:~ ~:.qq . ._ ._ .
~. . ~.| ~~~ _ e. ._ .
. . .~ .q .|~ _., .:. -
.~ . . . , . . :. ~.,_ e
~_ ._~~. . ..: . ._
.e ~ .. . e. ..: .|.~
. . ~ ~.,_ e _ ., .:. -
. . .~ ~_._ . ~~:
. ._ ~. ~e ~._ . . :. ~:.
._....:.,.. ...~
~_. _~.~.,q._ ~.~
.,..'..:.~:. .e:_..:.._
_e.._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
From page ...(Power Is The Key)
From page ...(Power Is The Key)
projecL hnunce bunks
eager to follow Thailands
increasingly internationally
focused sponsors into the
Myanmar market, the
opportunities are there
Ior Myunmur Lo benehL
and learn from the Thai
experience. Singapore, as
SouLI-EusL AsIu`s hnuncIuI
centre, is home to some
ambitious developers and
is also likely to play a key
role, not least due to its
favourable tax treaty with
Myanmar.
Multi later al/
Development fundi ng
assi stance
Given the risks involved
and Myanmars early
stage of development,
multilateral and ECA
development funding
assistance is key. If
there was ever a market
that should attract
development funding,
Myanmar is that market.
Institutions such as the
World Bank, the IFC, and
the Asian Development
Bunk uII wunL Lo hnd
opportunities to provide
development assistance
to the country. Various
high-ranking delegations
from these institutions
have visited the country
over the last 12 months to
pledge support, which will
be essential in ensuring
the transition of the
power sector to a model
that is bankable.
Nathan Dodd and Ben
Thompson are partners
in the Sincpore og ce oj
SMIB to Give Iorther K1 billion
Myanmar Summary
Myanmar Summary
T
he small and Me-
dium Enterprise
Development Bank
(SMIDB) will contribute
K1 billion ($1 million) in
loans in each of Myan-
mars seven states in a bid
to support the countries
local business sector, an
SMDB om cIuI suId.
The loans will be distrib-
uted regionally through-
out Myanmar at an in-
terest rate of 8.5 percent
over three years.
SMIDB has already
granted K20 billion ($20
million) with an 8.5 per-
cent interest rate to SMEs
throughout Myanmar this
hnuncIuI yeur.
U TIn Muung HLuy,
managing director of
SMIDB, said the state
loans will provide mone-
tary support for the small
and medium enterprises
(SME) in the country.
TIe Ioun wIII be dIs-
bursed this month, fol-
lowing recommendations
from representatives
from the state and region-
uI governmenLs, Ie suId.
State-run SMIDB was
established in 1996 and
currently has 13 branches
May Soe San in Myanmar.
Daw Khin Thein, man-
ugIng dIrecLor oI MIn HLeL
Kaung Manufacturing,
said the comparatively
Iow InLeresL ruLes oered
by SMIDB will draw local
businesses in Myanmar to
the loans.
She said SMIDB will
provide bank loans of up
to K150 million for a col-
lateral worth K600 mil-
lion, and when compared
with other private banks
the interest rate is cheap.
The K1 billion state con-
tributions from SMIDB
will see small and me-
dium enterprises become
more competitive in My-
anmars growing econo-
my, she added.
I LIe moneLury sup-
port provided through the
regional loans can help
increase the production
capacity of local business-
es in Myanmar, then the
wIoIe counLry wIII benehL
Irom LIe secLor`s hnuncIuI
reLurns.
CA to Spend $1m to
Lpgrude Seven Airports
T
he authorities will
spend more than K1
billion ($1 million)
to repair seven domestic
airports in Myanmar in
LIe currenL zo1q-1 hs-
cal year, a Department of
CIvII AvIuLIon (DCA) om -
cial said.
Since the process for
improving 30 domestic
airports began, 48 local
and foreign companies
have bid to handle the op-
erations, she said on con-
dition of anonymity.
The repairs will include
hxIng buIIdIngs und run-
wuys, uLLenIng LIe heId
and installing security de-
vices, she added.
TIe muIn LIIng Is Lo re-
pair the runways. As rainy
season has arrived we will
prepare everything neces-
sary to prevent airplane
uccIdenLs, LIe DCA om -
cial said.
The airports to be re-
paired are Thandwe Air-
port in Rakhine state,
Tachileik and Mae Sot
Htun Htun Minn Airport in Shan state,
Naung Mon Airport in
KucIIn sLuLe, oI Kuw AIr-
port in Kayah state, Kalay
Airport in Sagaing region
and Koe Koe Island Air-
porL In Yungon regIon.
Four foreign companies
have also made proposals
Lo consLrucL LIe HunLIur-
waddy International Air-
port set to become the
largest airport in South-
east Asia once complete.
One of those four com-
punIes wIII hnuIIy be se-
lected for the project in
June.
~....:.. ~.~.:.e_e.
.q.~ . _., .:~. . . ..
_._,e.~..:.q ~....:.
..,..:.. ...~...
Thandwe Airport in Ngapali, Rakhine State.
The small and Medium Enterprise Development Bank (SMIDB) will contribute K1 billion ($1 million) in
loans in a bid to support small local businesses.
Mcer roun's Globcl
Projects Group. The
second cnd jncl pcrt oj
this crticle uill jocus on the
chcllenes in Mcnmcr's
pouer sector touchin
on underdeteloped
documentction, lender
securit, cs suppl cnd
the legal system. This
crticle ucs jrst published
in PII Yecrbool zo:(, c
publicction oj Thomson
Reuters.
. ~. ., .~. .: ~.
.e, .,._e .~.~~
......._ _e. ._~:. . q._ .
_._ ,e . .e ~ ,~ .~. . .
. .~..,.~..: ~.
. e . , . .~ . ~ :._. .
.....:.~ ~~..,. ...
q:..,._e ~...._
_e. ~:.... .~ ~. .. : . .. .
_e. _..~ , .~~ ..~ ~.~:
~_ .e: ._ _ e. ._ ~: .
SMI DB ~ - ~ . .. .
.|, ~ ~: .~ ..: ._.~ ~ , .
~~ q~.,~ ._.:._.
.~ . q:_._ ,e ~ .~. .q
~e .~q .:~..~.~,
_ ., .:~. . . .~ SMEs
. ., ..~ ~ ~ , . . : .~
~.~: ~_ .e: .... :.|''
e ,.~ ._.:._.
_._ ~ .. ~....:.. ~.~
.:...,..:.~.,_e _.,.:
. ~....:.. ~.~ .:.e _e .
.q.~ . ~ .. ....._
....- ~~..,..: ~_.:.
. . ~~ .:.. . .e .|~
~~ .. , ..~ .:._ ~~ ~
. ~ ~ .:.. .:...: ._. ~:..
._~.~.,_e ...q._.._.
~, e .~ ...._ ..:~._
~. , ~. .,_ ..|.._ ~~ ~
. . .... q. ._~: . ~....:.
. ~.~ .:.. . , .q .:.~
.._.
U
A
u
n
g
/
X
in
h
u
a
S
h
e
r
p
a

H
o
s
s
a
in
y
~~,~~ ... _:..
~ _._ ~ ...e: ~ .. ,.
~ . _._. _. .. . , ..:.~~ ~
~..,.~..:.~: ...
._e .q._.
~. .|..e: ~ ..:. _._.
q:~ ....~..:~~~
.:. _._. _. . ..e: ._.... .
_._. _. . ._..:._ _. .. . _.
.q... _ ..:.~. . _. ..._
~ ..: q ~ . :.._ _e. ._~: .
..._~: .. ..: .q. , _~:.
...._:,. .q._.
~. ~..e: ._.... .~
_.,_.._..q.e.~. ..q:.
..~: ..e:..~:~..
._e. .~: . ~. ~:.~ _. .
..: q ~ . :.. :_e. ~e ''e
..._~: .. ..: .q. , _~:.
. .. ._:,. , _~:..q.. .~. .
~ ._.:._.
_._.._.....:..: q.
_._,e .~.... q.._._
,e q ~:. . ~ ... . .
...~ ... . ~. _._ ,e
.,: . , ... . ~e:._._ ,e
q . .~: ... . .. ~ .~ .
..._~ .q ~...... . .
q, ~ , ~ ...._~.q ~ ~ .~, .
....~_e.._.
.~ q __._ ~ .... . ,~ .
~:. ~._.~q, ..~
~.~.:. ~.|..'e:.
q:~ _._~. _._.~.~
, .. ~.|~..:._..
. . ~ . _.._ ~ . ~ .:.~:.
._~:. .q..e . :.._ _e. ._~: .
. q._ .
.~ q ~ _., .: . ..q-
,~ q:..,..: ....qq.,
_.. ,.. ' q:..,.._ .~.
.~ .... qq _ . ._ e. ._ .
e., . . ~ q, ~ , _. ~ .. ..
.|~ ~:._ .~ .~:~ . ~~ ~
.. ~ .e: . . :. q . ._ .
. . .. .:~ ~:._ .~ .~:~
_.. .:~~:.._._~_..~.
., . ~~ _ ~ .~ q._
~.~..~_e. e...~ .:
.q:~ ._ .~ . . ~ . .~ _.
._~..._....~~_~.,
_e ~..q- ..:....~.q.
~.._e._.. ~..q- .,:~..
~_.,.~~q ~,~ ~
.|~. ~,~~~ ~._.~..
.q, q_.,.:.._~:. .q
._ . .~ q ~ . . |~. ,~~~
.: ~......._.
~..q._ ~, ...~
_._:, .. ._ .~ q .. .. ...
~:. _..q, ...~q_..
~:q e _ e .~ .~~ . ~ .
....|.....:.~q._.
~. .q~.,_ e . . .~ . ~|.
~.. ~ ._. ~. ..:.. . .~
. . ., . . .~: .~ . ~. .
.q.. .~ q ._ .

There is simply not the cash


available in the public purse
to make the substantial in-
vestments required to up-
grade Myanmars power infrastruc-
ture in order to keep pace with its
economic development.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
Myanmar Summary
Chinu's Li Ilies Into LK to Tulk Trude,
Seul euls Worth $ob
C
IInese PremIer I
KeqIung ew InLo
Britain last Monday
Ior LIe hrsL LIme sInce
LukIng omce on u vIsIL
focused on moving the
relationship beyond the
poIILIcuI dIerences oI
the past and signing more
than $30 billion of deals.
Britains relations
with China took a nosedive
in 2012 after Prime
Minister David Cameron
meL LIe DuIuI umu, LIe
Tibetan spiritual leader
whom Beijing says is
a separatist. Ties have
recovered somewhat
since, and Cameron
visited China last year.
Tensions remain,
however. Beijing warned
ondon on LIe eve oI I`s
visit not to lecture it on
the subject if it wanted
good economic ties, after
Britain angered China in
April when it criticized its
human rights record in a
report. Britain is expected
to take the opportunity
to announce it is easing
some visa restrictions
on Chinese citizens, a
ANDREW OSBORN
AND BEN BLANCHARD
long-standing request
from Beijing which has
complained current
arrangements are overly
lengthy, bureaucratic and
opaque.
I wIII IoId LuIks wILI
Cameron and will also
meet the Queen. Chinas
ambassador to Britain on
Friday robustly rejected
local media reports that
Beijing had threatened to
cunceI LIe LrIp II I wus
not granted an audience.
In speeches to Chinese
and British business
people, as well as think
Lunks, I Is expecLed
to make reassuring
comments about slowing
growth in China to try
Lo sIore up conhdence
in the worlds second
biggest economy.
A Reuters poll in April
forecast Chinas economic
growth could slow to 7.3
percent in the second
quarter from a 18-month
low of 7.4 percent in the
previous quarter, with
full-year growth of 7.3
percent in 2014, the
weakest in 24 years.
I Ius sIgnuIed some
exIbIIILy In ucIIevIng LIIs
years 7.5 percent growth
target, but analysts say
the government needs
to prevent growth from
falling towards 7 percent,
something that could fuel
job losses and threaten
social stability.
DEALS
Boosting business
between Britain and
China is one of the visits
main aims. China views
Britain as Europes most
open economy and is
keen Ior ILs hrms Lo InvesL
in nuclear and high-speed
rail projects.
It also wants the
government to ensure
ondon`s HeuLIrow
airport is expanded.
Two large Chinese
investment funds are
expected to announce
plans to ploughs new
money into Britain during
the trip.
ondon wunLs Lo
deveIop us un osIore
yuan trading hub and
there may also be deals
related to that. China has
said the visit should yield
business deals worth a
total value of over $30
billion.
Ahead of the trip, Vice
Commerce Minister
Guo Yun suId CIInu`s
investment in Britain
had jumped from $840
million in 2008 to $12.4
billion in 2013.
CIInu Is wIIIIng Lo
import even more high-
tech goods, services and
producLs Irom BrILuIn,
Gao said.
She said she hoped
Britain would push
Europe to lift curbs on
exports of high-tech
goods to China and said
Beijing wanted British
help to explore an EU-
China free trade deal.
Reuters
Philippines Culls Ior Constroction Ireeze in Sooth Chinu Seu
T
he Philippines
said last Monday
that Chinas
expunsIon ugendu In
the disputed South China
Sea threatened security
and stability in the region,
calling on all claimant
states to halt construction
activities that may raise
tensions.
Albert del Rosario,
IoreIgn uuIrs secreLury,
said he supported U.S.
Assistant Secretary of
State for East Asia Daniel
Russels proposal for
China and Southeast
Asian states to get
together for dialogue.
eL`s cuII Ior u
moratorium in terms of
activities that escalate
LensIon, deI RosurIo
told ANC Television
on Monduy. Now,
lets do that while we
work on an expeditious
conclusion of the code
oI conducL und eecLIve
ImpIemenLuLIon.
Del Rosario said China
and other claimant
states have been rushing
construction activities in
their respective claimed
territories to expand,
citing works in Fiery
Cross Reef, Johnson
South Reef, Gaven Reef,
and Cuarteron Reef.
TIey`re ucceIeruLIng
their expansion agenda
for the following reasons
... one is they want to do
this before the conclusion
of the code of conduct.
Theyre also trying to
do this very quickly
in anticipation of the
handing down of the
LrIbunuI uwurd.
Southeast Asian states
have been pressing China
to conclude a Code of
Conduct - a set of rules
governing naval actions -
for the South China Sea.
usL yeur, LIe PIIIIppInes
hIed u cuse uL LIe U.N.
Arbitral Court in The
Hugue Lo cIurIIy ILs rIgILs
to explore and exploit
resources under the U.N.
ConvenLIon oI LIe uw oI
the Sea. China has refused
to participate in the case.
Chinese Foreign
Ministry spokeswoman
Huu CIunyIng suId CIInu
had a right to do what
it wanted on its islands
in the South China Sea
as they were Chinese
territory, and criticised
the Philippines for what
it called Manilas illegal
occupation of some of the
islands and construction
work there.
On LIe one Iund, LIe
Philippines keep making
further provocative
moves, and one the other
hand make thoughtless
remarks about Chinas
appropriate moves
within the scope of our
sovereIgnLy, sIe LoId u
duIIy news brIehng. TIIs
Is LoLuIIy unreusonubIe.
China claims 90 percent
of the South China Sea,
believed to have huge
oil-and-gas deposits and
rIcI In hsIery resources.
Brunei, Malaysia, the
Philippines, Vietnam and
Taiwan also have claims
over the sea where about
$5 trillion of ship-borne
trade passes every year.
Del Rosario said Chinese
construction in the
Spratlys was an attempt
to alter the character of
the features, converting
reefs into islands to be
able to increase maritime
entitlements.
China and Vietnam
are also involved in an
increasingly bitter spat
over the operations of a
Chinese oil rig in another
part of the South China
Sea, around the Paracel
Islands.
China has made Woody
Island, which Beijing
calls Sansha city, the
hub of its operations on
the Paracels, including
building a port and
airport facilities there.
Reuters
Manuel Mogato &
Lara Murallos
British Prime Minister David Cameron (L) and Chinese Premier Li Keqiang.
N
g

H
a
n

G
u
a
n
/
B
lo
o
m
b
e
r
g
A China Coast Guard ship, top, and a Philippine supply boat engage in a stand off as the Philippine boat
attempts to reach Ayungin Shoal.
J
a
y

D
ir
e
c
t
o
/
G
e
t
t
y

I
m
a
g
e
s
e..... ~,~.-
. .q.~. ~. ._ .~:
~, ~ . .e -. _ . .q..
...~.~__..~:. ..:
e~.,._~:. ~,.:.,~
._.:_~:. . _ . . ~ . .:. . :.
_. ~~ ...._ ~_..:~
.q.. . , ..:.. . ..: .,.
~ q.~,...q, .~:...
._.
~,~~,_~... Li Keqiang
~.,_e ~,.:.,~ _-~,
.. ..~_~. ~q:.~
.:..q:~._.. ..q..~_.
~..' .~..q.~._..q,
~.~_e._.. ~..q~,..'.:
.e ,~ ~,e.q .:...:.
._ ... . . ._~: .. q ._ .
_- ~ , . . ~, ~ . ~_~:.
.~..q.._ ~~ ...
~, _ ~ .. . ...-. ~ .q , ..
. .. . ~ .q...:.~_e.
. . . :.._ ~ ~ , ..~:
_~. ....:..:.~:. .~.
_. ..,:~ ~ .~ . .q...: ~
. ._ .. ..: ~ .q , .. e.,
.. ~,~.. .:..q:~
._.~._...,:~~ .~.
.q. _ ., ._ .~: .. , .:.
._.
~, ~ . _ - ~ , . .. :..q.
..:..:. ~_~....:.~~~
Li ._ ~,~.- ...:.
.q... ..~ .. ~..' . ...
. ~ . :. _ . . . ._ e ._ .
.,.,.:._~._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
CoHee Ootpot in Indiu Climbing us Ruins Spor Beun Growth
A worker rakes the pulped outer layers of arabica coffee berries as the waste pours.
B
lo
o
m
b
e
r
g
C
oee producLIon
in India, the third-
largest grower
in Asia, will probably
rebound Irom LIe hrsL
decline in six years after
plentiful rains spurred
bean development, an
exporters group said.
Shares of exporters
gained in Mumbai.
The harvest in the 12
months starting Oct. 1
is set to expand from
300,000 metric tons
this year, Ramesh Rajah,
presIdenL oI LIe Coee
Exporters Association,
said without providing
an estimate. While he
expects an increase, the
crop still faces the risk of
pest attacks and reduced
rainfall from a possible
El Nino later this year, he
said by phone on June 13.
HIgIer producLIon
Swansy Afonso may boost shipments,
expanding global supplies
and potentially pressuring
prices. Arabica futures
In New York enLered
abear market this month
and have tumbled 20
percent from a two-year
high in April after rains
eased drought damage for
plants in Brazil. Robusta
prIces In ondon IeII q.q
percent from the highest
level in 17 months in
March.
TIe prospecLs seem
much better next year,
specially for robusta,
because rains have been
quILe IuvorubIe, NIsIunL
Gurjer, a member
and past chairman of
the Karnataka Planters
Association, said by
phone June 12 from
Bengaluru, formerly
known as Bangalore. The
group represents 650
growers from the state,
which supplies about 70
percent of the nations
crop.
Total production may
increase by 7 percent from
the 280,000 tons that
the planters association
estimates for this year,
Gurjer said. The robusta
crop, which makes up 70
percent of the total, may
expand by 15 percent, he
said.
El Ni no Concer n
Karnataka received
9 to 75 percent more
rain than the 50-year
average from March
to May, according to
the India Meteorological
Department. The
monsoon from June
to September, which
supplies more than 70
percent of annual rainfall,
will be below normal at
93 percent of the 50-year
average because of the
emergence of El Nino, the
bureau said.
While Rajah from the
exporters association
said a weak monsoon may
hurt the crop, Gurjer of
the planters group said
the absence of heavy rain
later in the year may be
benehcIuI.
I un EI NIno does
happen and the monsoon
isnt as vigorous as last
year, the risk associated
with a heavy monsoon
reduces, Ie suId,
explaining fewer cherries
would be lost.
TIe sLuLe-run Coee
Board cut its output
forecast for this year to
311,500 tons in January
from 347,000 tons at the
start of the season, citing
heavy rain in Karnataka in
September and October.
The board hasnt updated
its estimate. The crop was
a record 318,200 tons last
year, board data show.
A weak monsoon might
increase the incidence of
the white stem borer pest
in arabica plantations,
according to Rajah.
Br azi li an Suppli es
SIures oI TuLu Coee
Ld. (TCO) udvunced us
much as 2.8 percent to
994 rupees in Mumbai
trading, the biggest gain
in more than a week,
before trading at 986.35
rupees uL 11:qq u.m. IocuI
LIme. CC ProducLs Ld.
(CCP), ndIu`s bIggesL
exporter, climbed as
much as 1.5 percent to
63.70 rupees.
Arabica prices may
drop by 10 percent to 15
percent in the next couple
of months, while robusta
may decline 5 percent to
10 percent, Rajah said.
BruzII`s crop sIouId be
coming in better than
expected and we are
heading into the lean
demand season as the
summer months begin in
U.S. und Europe, Ie suId.
Brazilian growers are
facing less severe crop
losses than estimated
after showers reduced
the impact of the worst
dry spell in 50 years,
Agriculture Minister
Neri Geller said on June
2. Output this year may
be 50.5 million bags,
according to Mercon
Group. Thats higher than
the 49.5 million estimated
by the U.S. government in
May.
S h i p m e n t s
from India may fall in
the second half because
of the smaller crop and
weaker prices, Rajah said.
Exports in 2014 will drop
by 5 percent to 10 percent
from 312,756 tons a year
earlier, he said, reiterating
estimates made in April.
Exports declined to
167,714 tons between
Jan. 1 and June 10 from
168,089 tons a year
earlier, board data show.
Buyers from Italy, Russia
and Germany accounted
for about 40 percent of
exports last year, the data
showed.
Robusta rose 0.1 percent
to settle at $1,999 a ton
on NYSE Ie yesLerduy,
while arabica fell 0.4
percent to $1.758 a pound
on ICE Futures U.S.
loomber
Myanmar Summary
Myanmar Summary
Chinu to Meet This Yeur's ,.g
Percent Growth Turget:
Premier Li
C
IInu Is conhdenL IL
will hit its growth
target of 7.5
percent this year, Chinese
PremIer I KeqIung suId
last Monday, adding the
government was ready to
adjust policy to make sure
it does.
Writing in Britains The
Times newspaper on the
eve oI IIs vIsIL Lo ondon,
I suId sIowIng growLI In
the worlds second-largest
economy was normal and
not a problem.
CIInu`s economy needs
to grow at a proper rate,
expected to be around
;. per cenL LIIs yeur, I
wroLe. L Is sIower LIun
LIe pusL, buL normuI.
DespILe consIderubIe
downward pressure,
Chinas economy is
moving on a steady
course. We will continue
to make anticipatory and
moderate adjustments
when necessary. We are
well prepared to defuse
various risks. We are
conhdenL LIuL LIIs yeur`s
growth target will be
meL.
A Reuters poll in April
forecast Chinas economic
growth could slow to 7.3
percent in the second
quarter from a 18-month
low of 7.4 percent in the
previous quarter, with
full-year growth of 7.3
percent in 2014, the
weakest in 24 years.
I Ius prevIousIy
sIgnuIed some exIbIIILy
in achieving this
years growth target
although analysts say
the government wants
to prevent growth from
falling towards 7 percent,
as that could fuel job
losses and threaten social
stability. Reuters
Andrew Osborn
B
lo
o
m
b
e
r
g
~:q -~~ e~_~ .. ..~: e
.~..._._e.._ ~.e
. ~ . .._ ., . : q :. , ..
._~: ._.:~ . . ~~ . ..
~_~.~_e. .~:e~...
~. .. q:. _., ._ .~: .. ,
.:_._e.._~:. ~..q:..
._ ~e ~. . . ._.:_~:.. ._ .
.q ~..q:....:.-
q e e:. :.._ . _ . ~~ .
._~:. .q._.
.~:~~: ~ q~. ~ .
~~. q~...q:~ e...
_ .~ q. ~, ,~~,~~~ ~ q
._e.,.,.q._~:. .~:e
~ . .q: .. . . :.~. .
~_ Ramesh Rajah . ._.:
_~:..._.,.. ~.~~.:
._ e ., . , .:...: ._ .
. .. .:.~.,_e . .. :.~.q:~
.. _~.~.,q_.. e...~
~e , . q:. ~ _ e. . ._ .q
._ ~~ ~ . .q :. , .. ..: ~
.._e ~,. ~, q~.,~
._.:_~:..._.
~ . . . _. ~~ _. .._
..:_e~..~:. _.~~
... _. . ~. : ~ . . ~:. ~e
_.,...~: ....,._.~~
q,._. ~.:.~.:.~:.
.:. _e...'..._. Arabica
~.,_e ,e..e:~. ...
.,.,.,._e e..~~. ~
.q:~._.. -_..~~. ..
.~ ~ ~ _. ~~ . q:. ~ q:.
.,. ~...._.
~, ~ . ~.,_e , .. -
e. . . ~~ ~ ~ .~~ . ~:.
... q:..,.. .q:~q
q, .~.q._~._.~.,~
q._~:. ~q~~,_~... Li
Keqiang . ~,.:.,~
._.:_~:.. _. . ~. .q~.,_e
..q:~qq,.~|..:..,_
q, ~._.:.._~:. ._.:
_~:..._.
_-~,- Times .~..:
~ .q..:.:..~~q ,.
- ., ., . ._ .~ . ._
~..:..~ Li . ~.:
. ~ e~_~ .. .. .. :..q..
~ ~.~~.....~..:_..
._ ..,_e._.. _..,:~..
.e~._~:. ._.:_~:..._.
~e. ...~.~~.,.~._.
.q:~ . .e . e _ ~_ .|
~e .''
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
Myanmar Summary
Asiu's iesel emund Growth Seen ut
nd
Lowest Since 1qqS Crisis
A
sias diesel demand
is expected to grow
this year at the
second lowest rate since
LIe 1qq8 hnuncIuI crIsIs
as slowing economies
and subsidy cuts squeeze
consumption and help
build a surplus for which
there are few markets.
Demand in top regional
consumers China, India
and Indonesia is expected
to remain stagnant or
IuII. And us new rehnIng
capacity is added in Asia
and the Middle East,
excess diesel is seen
hitting an annual average
of more than a million
barrels per day (bpd) in
2014, according to one oil
and gas consultancy.
That means regional
returns or cracks from
processing crude into the
fuel - already near 3-1/2-
year lows - will remain
slim, analysts said. Since
diesel or gasoil accounts
for nearly 40 percent
of the typical Asian oil
plants output, overall
processIng prohLs wIII
also be pressured and
some regIonuI rehners ure
already slowing run rates.
Asias surplus diesel
would normally be
shipped west but Europe
is facing a glut as well,
with diesel margins there
holding at multi-year
lows.
A purLIuI recovery
this year is expected but
growth will probably still
fall short of the levels seen
In zo11 or zo1z, suId AIex
Yup uL energy consuILuncy
FGE.
JANE CHUNG AND
ALICE WOODHOUSE
Asias diesel demand
will grow slightly faster
this year than in 2013,
when it rose less than 1
percent - the lowest in 15
years, FGE said.
Oil consultancy Wood
Mackenzie (Woodmac)
has lower numbers,
forecasting diesel use
in Asia to grow at 0.45
percent compared to
average annual growth
Ior LIe pusL hve yeurs uL
3.9 percent.
For the second quarter
this year, Woodmac
estimated Asian diesel
demand 0.7 percent
higher than last year,
while forecasting growth
in 2015 at 1.7 percent.
This slow growth amid
increasing capacity will
result in a diesel surplus
of around 1.2 million bpd
this year, said Suresh
Sivanandam, an analyst
at Woodmac, with Chinas
diesel exports averaging
around 90,000 bpd,
nearly double from 2013.
China is bringing on
new rehnerIes even us
demand growth there
drops to its slowest in
decades, forcing Asias
top consumer to turn
exporLer und oodIng LIe
region with supplies far in
excess of demand.
New plants in India and
the Middle East are also
contributing to diesels
overhang, analysts said.
Diesel is Asias most
widely consumed fuel,
used in everything from
power generators and
factories to trains and
trucks. Given its broad
applications, the product
is often seen as an
indicator of a countrys
economic health.
LI TTLE ROOM
There is some room
but not a lot for Asian
products to be soaked up
elsewhere, said Amrita
Sen, chief oil market
analyst at Energy Aspects.
AsIun producLs Iuve Lo
move out of Asia ... but
competition from other
players such as the Middle
East, Russia and the U.S.
Is rIsIng, sIe suId.
Given the excess supply,
AsIun rehners - especIuIIy
in South Korea and Japan
which account for about
a third of Asian middle
distillates exports - have
lowered crude runs
slightly.
SouLI Koreun rehners
may consider cutting
run rates if the supply
glut continues, but
actually they have already
trimmed by 30,000 bpd
or o,ooo bpd so Iur, suId
a source at a North Asian
rehner wIo decIIned Lo be
IdenLIhed.
SouLI Koreun rehners`
average operating rate
from January to April this
year was 80.7 percent,
down from 83.1 percent
during the same period
last year, data from state-
run Korea National Oil
Corp (KNOC) showed.
n LIe hrsL quurLer oI
this year, South Korean
und Jupunese rehners
processed less crude than
last year amid a regional
supply glut.
PARI NG SUBSI DI ES
A gradual reduction
of subsidies in India
and Indonesia to bring
domestic gasoil prices
in line with global
markets is also hurting
consumption, analysts
and industry sources said.
Indonesias diesel
demand is expected to
drop 4.6 percent this
year, further than last
years fall of 3.7 percent,
Woodmacs Sivanandam
said.
Indias diesel use fell
1 percenL In LIe hscuI
year that ended March
1, zo1q, LIe hrsL drop
in more than a decade in
the worlds fourth-largest
oil consumer, according
to data from the oil
ministrys Petroleum
Planning and Analysis
Cell.
New Delhi last year
uIIowed sLuLe oII hrms Lo
hike diesel prices by small
amounts every month
with the aim to end
subsidies eventually.
That should keep
pressing down the
countrys demand for
diesel, said a trading
source based in India.
Western oil advisors
and economists have
for years been saying
that fuel subsidies have
distorted Asian oil
markets, encouraged
overconsumption and
Ied Lo mussIve rehnery
capacity surpluses in
some countries such as
China.
YeL LIe ImpucL oI
reduced subsidies in
India and Indonesia may
not be long-lasting as
economic growth in the
two countries will likely
bolster demand for diesel
A worker repairs a dieseI pump machine at a fueI station in KoIkata ]anuary 18, 2U13.
Ropee in Biggest Three-uy ecline Since
Junoury on Oil Concern
in coming years.
SubsIdy removuI Ius
played a role in lower
demand but we anticipate
that the impact of price
hikes on Indonesian
diesel demand will be
temporary, as road-
freight demand for diesel
will grow in tandem with
LIe deveIopIng economy,
Sivanandam said.
A serIes oI rehnery
shutdowns in Australia
is also likely to support
demand for the fuel,
helping soak up some of
the regional surplus.
Reuters
B
rent crude jumped
to a nine-month
high on June 13
on concern violence
in Iraq will disrupt sup-
plies, threatening to in-
crease costs for Asias
third-largest economy
that imports almost 80
percent of its oil. Indias
wIoIesuIe-prIce InuLIon
accelerated to 6.01 per-
cent in May, the fastest
sInce December, omcIuI
data showed yesterday.
TIe Lrude dehcIL reucIed
a 10-month high of $11.24
billion in May, a report
showed last week.
The rupee slid 1.9 per-
cent in the past three
days to 60.38 per dollar
uL 1o:o8 u.m. In MumbuI,
the biggest loss since the
period ended Jan. 27, ac-
cording to prices from
local banks compiled by
Bloomberg. It fell 0.4 per-
cent today and dropped as
low as 60.5250, the weak-
est level since April 29.
TIe rupee`s weukness
is mainly due to dollar
buying by importers on
expectation oil prices may
surge because of Iraq ten-
sIons, suId Ankur JIu-
veri, co-head of currency
and rates in Mumbai at
brokerage Edelweiss Fi-
nuncIuI ServIces Ld. TIe
currency may fall as low
as 60.80 today, he said.
Indias currency and in-
terest rates will withstand
the surge in oil prices
as the nations political
stability draws capital,
Ashima Goyal, a member
of the Reserve Bank of
Indias technical advisory
committee, which advises
Governor Raghuram Ra-
jan on monetary policy,
said in a phone interview
yesterday. The rupee is
unIIkeIy Lo weuken mucI
beyond 6o per doIIur,
and may trade mostly
between 58 and 60 this
year, she said.
Foreigners have
pumped more than $10
billion into Indian bonds
and stocks this quarter,
exchange data show, as
the nations most deci-
sive election in 30 years
buoyed conhdence.
loomber
Kartik Goyal
~:q- .~e.~..~._
e...~~. ~.~~.:._
e .,.,.q_.. ~ .._~.
~~ . ~~_ . ~_ . . . ~ e
~,_....,._e.~: ...:..q.
....~._... q,....:.
_...:.._ ....~:. ..:
,_..._.. ...~~~,_.e
~:. _e_~....q,~_._~:.
.q._.
~,~ ~.e. ~.,.q:.
~. ...~..~,....
._..:.. ~e.~:.._
~__. ., ~...:._e
., . , .:.._ .~:q . ~.q
~.e . .~ ., . .~ ~..
.:. _...:._~~~
. ~e . . . ~.,_e ~~, . . .
~~. ~.q~. ....
._~..,..,q.:.._~:.
.q, . ~ . . . , .~. . -
._.:_~:..~~q .q._.
. . ._ . : .q, . . .. ..: .:
~...~ _.,._qq..:.
._ , . . . , ..|. ..: ~.,.
_e. ._~: . .. .:. .:.. ._.:
_~:.:.._.
Brent crude ~.,_e ~,.
~, q~ ., ~ ~ q~ ~ _e. .~
.._ ~_~..e~..:.._~:
.:~ . .q. . :. e ~ . . . q
._ ~~ ~ ~ ..~~ . ~_.
...,~~.~: ,.-.q, ~
q:..,.~:. ~..., ._
~:q- ~~e~_~...
...~~~:. ~,~.:.q~
_.~~...__e.._. ~.e
- .~~:.....e:...._
...~ ' ... ~~ q:..,.
_.~~._.. .~:.,:~..
~_ ., . ._ e. ._ ~: . ~. .q
~.~ ~.~ .:.~q . q._ .
.._~.~.,_e e., ~ '~
... ~ .~... ._~: .
. q._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
16
Contd. P ;...(China)
A
sian shares struck
a cautious tone
last Tuesday as
the double-whammy of a
deepenIng conIcL In ruq
and a gas dispute between
Ukraine and Russia
sapped investors appetite
for risk.
MSCIs broadest index
oI AsIu-PucIhc sIures
outside Japan fell 0.3
percent. Japans Nikkei
bucked the trend with rise
of a 0.5 percent, though
it was still down on the
week so far.
Oil prices remained
near nine-month highs
after militants from the
Islamic State of Iraq and
LIe evunL seIzed u Iurge
swathe of northern Iraq
and threatened to capture
u key oII rehnery.
The insurgent advance
forced Washington to
not only consider options
for military action but
also hold brief talks with
Iran, its long-time foe,
to support the besieged
government in Baghdad.
U.S. crude futures
edged down to $106.76
per barrel after having
climbed as high as
$107.68, but investors
remain wary of potential
disruptions to oil exports.
Hideyuki Sano
TIe udvunce oI
extremists to Baghdad
or bombing by U.S
forces will be a trigger
to justify rise in U.S. oil
prices above $110. That
would be a burden for
the world economy in the
neur Lerm, suId DuIsuke
Uno, chief strategist
at Sumitomo Mitsui
Banking Corp.
HIgIer energy cosLs ure
likely to curb growth in
oil-importing economies,
with the Indian rupee
already falling victim
to worries over rising
InuLIon Lo IIL u one-
month low.
Tension in Ukraine
showed no sign of abating
us RussIu cuL o gus Lo
Ukraine in a dispute over
unpaid bills that could
disrupt supplies to the
rest of Europe and set
back hopes for peace
between the former Soviet
neighbours.
As investor risk
sentiment was hit,
IgIL-Lo-quuIILy bIds
underpinned U.S.
Treasuries prices despite
solid U.S. industrial
output data.
The 10-year yield stood
uL z.q percenL, o IusL
weeks peak of 2.662
percent. Immediate
focus is on the Federal
Reserves monetary policy
statement on Wednesday,
when the U.S. central
bank is expected to
announce it will continue
paring its bond purchase
programme and cut its
growth projections.
In the currency market,
the Australian dollar
slipped after minutes of
the Australian central
banks June 3 meeting
were more dovish than
expected.
The Aussie dipped 0.4
percent to $0.9361 as
the minutes showed the
Reserve Bank of Australia
was not sure the current
stimulus would be enough
Lo oseL u drug Irom
falling mining investment
and government belt-
tightening.
The British pound held
neur u hve-yeur IIgI IIL,
maintaining momentum
after Bank of England
chief Mark Carney
surprised markets last
Thursday by suggesting
the Bank of England may
tighten its policy before
year-end.
The pound stood at
$1.6975, near Mondays
high of $1.7011, with
close attention falling on
consumer JInuLIon duLu
due later in the day given
the focus on the BoEs
policy.
Elsewhere, Argentinas
Merval index fell 10.1
percent after the U.S.
Supreme Court declined
to hear the countrys
appeal over its battle with
hedge funds that refused
to take part in its debt
Myanmar Summary
Most Asiun Shures Slip on Anxiety Over Iruq,
ollur Idges op
F
or more than eight
yeurs, uong TII
Kim Oanh bought
cases of thread from
China for her garment
IucLory In HunoI. usL
month, rattled by an anti-
China riot in her country,
sIe pIuced Ier hrsL order
from South Korea.
used Lo buy qo
percent of my thread
Irom CIInu, suId OunI,
52, who employs about
zoo peopIe uL VIeL Hung
Garments & Embroidery.
SIIILIng sourcIng muy
cost us more, but we need
to think of it now, or it
muy be Loo IuLe. You never
know how things may
Lurn ouL.
Oanh fears a further
disruption in trade after
last months violent
Nguyen Dieu Tu Uyen
Chinu Aggression Soonds Wuke-Lp
Cull Ior Vietnum Mukers
protests following Chinas
placement of an oil rig
in disputed waters. The
unrest halted production
at foreign-owned factories
and caused Chinese
workers Lo ee. WIIIe
China is the nations
largest trading partner,
Vietnam must reduce its
dependence and develop
a contingency plan to
cope wILI uny IIccups,
LurbuIence, VIeLnum
Chamber of Commerce
and Industry Chairman
Vu TIen oc suId LIIs
month.
More Vietnamese
businesses may have to
consider alternatives
as the country prepares
Lo hIe u IeguI suIL
challenging Chinas
claims to the disputed
waters. Prime Minister
Nguyen Tan Dung said in
an interview last month
that his administration
had prepared evidence
and was ready for legal
action against the worlds
second-largest economy.
L wIII Iorce VIeLnum`s
businesses to look into
other markets where the
political risk is absent,
und LIuL`s u good LIIng,
suId CIuu Huk BIn, u
Singapore-based regional
economist at Bank of
AmerIcu Corp. L`s uIwuys
good to diversify, anyway.
You don`L wunL Lo reIy Loo
much on another country,
especially where political
LensIons ure escuIuLIng.
The Vietnam Textile
and Apparel Association
has asked its more than
1,000 members including
Oanh to consider
alternative supply sources
to China, according to
Deputy General Secretary
Nguyen Van Tuan, even
as bilateral trade between
the two countries rose 84
percent to $50.2 billion
last year from $27.3
billion in 2010, according
to government data.
About 31 percent of
Vietnams exports to
China last year comprised
agricultural products,
while apparel and
footwear made up 13
percent, trade ministry
data showed. Forty-two
percent of imports from
China were telephone
components, electronic
spare parts, and fabric
and leather for garments
and footwear, with tools
and machinery making
up 18 percent.
Vietnams policy makers
B
lo
o
m
b
e
r
g
~:q q e e:. :. ~.,_ e
~|.,~ ~q~~.q. e~
q,..qq:.~_~:. .q,~_.
.:...:.._~: q..._....
.:.~..' ~,_.e e~
,~.._.
MISCI - ,.~,..:.~q
~:q..e~~~.q .,
~_.~ qee:.:.~.,_e
._... , q:..,. ~..
.._..,- Nikkei ~.,_e
. _... q:. . , . _.~~
...:._. .~.~~..
.,...._~:. .q._.
.q, ~, e ..:.._ ._ . .
_~:_.~~.~q.,_.. ~q~
~ ~..:.~.,..q:~ ..
..._~.:.. ~.~.q,.,.
.~ , ~:. . . .. ~ q, _. . .._.:~
.,._~~~_e.._.
~|q ~, . ~, _., .. . .q.
_..._.._.q,.:.~ ~q,
.._. ........:. _...
q, e ~:.....~ q _. . ~ .~
q ~. .q~:. .:~ . q, ~~ ~
_e.._.
restructurings.
The move risks sending
Argentina into a fresh
sovereign default,
although Argentine
shares have risen 34
percent so far this year.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
Myanmar Summary
From page 6...(China)
T
he number of
companies on
Cambodias stock
exchange doubled on
Monday - to two.
The debut by a Taiwan
garment maker is an
important baby step for
LIe bourse, buL LIe hrm`s
long road to listing and
a lack of clarity on the
number of companies to
follow underscore just
how far Cambodia has to
go before it becomes a hot
frontier market.
While neighbouring
Vietnam has seen around
660 companies go public
since the opening of its
hrsL bourse In zooo,
boLI CumbodIu und uos,
which has three listed
hrms, Iuve IuIIed Lo IIve
up to early expectations
that came when their
exchanges opened for
business in 2011.
That the newly listed
company - Grand
Twins International
(Cambodia) Plc, a major
clothing manufacturer
in the country - is
not Cambodian but
Taiwanese only serves to
highlight local corporate
reluctance. As does
the two-year gap since
CumbodIu`s hrsL IIsLIng.
Companies planning
to list must provide
LIree yeurs oI hnuncIuI
statements, have made a
prohL Ior LIree yeurs und
Prak Chan Thul and
Lawrence White
Cumbodiu's Second Listing Highlights Growing
Puins Ior Irontier Murkets
IuIhI poLenLIuIIy onerous
requirements to have a
variety of shareholders.
The Cambodia Securities
Exchange, a joint venture
with Koreas bourse,
initially announced plans
to list three state-owned
companies by the end
of 2012 but so far only
the Phnom Penh Water
Supply Authority has
made it to market.
And there is not a whole
lot of turnover, with no
shares changing hands in
one in three trading days
last month. The trading
oor wus empLy und
computers sat switched
o wIen u ReuLers
reporter visited in June.
While some 100 people,
mostly media, were
in attendance for the
ringing of the bell for
Grand Twins, it was a
subdued debut with the
stock falling 5 percent in
extremely thin trade.
Hong Sok Hour, CEO
of the exchange, has said
around 10 companies
are exploring a listing
and there would likely
be one more before the
end of the year, but
noLed prepurIng hnuncIuI
statements continued to
be a challenge.
We cun`L know wIen
LIey ure reudy, Ie LoId u
news conference earlier
this month.
Frontier markets,
a subset of emerging
markets but which are
more illiquid, less stable
and carry more risk,
have increasingly found
favour with investors
and without change,
Cambodia has much to
lose in potential capital.
uck oI ucLIon Irom
CumbodIu und uos meun
they risk being eclipsed
by Myanmar, says Asia
ronLIer`s Hugger.
Myanmar, which has
enacted sweeping political
and economic reforms
since 2011, is drawing
huge foreign investor
interest with some of that
beginning to bear fruit.
Gap Inc, for example, just
announced plans to open
Lwo IucLorIes In Yungon.
Myanmar, which
currently has two listed
hrms, pIuns Lo open u
brand new exchange in
October next year with
Japanese help. It says
half a dozen companies
will list in the early stages
including Myanmar
Agribusiness Public
Corporation and Asia
Green Development
Bank.
While experts say that
both Cambodia and
uos do Iuve weII run
companies that would
be attractive investment
targets, there needs to
a change in mindset as
business tycoons have yet
to be convinced about the
benehLs oI IIsLIng.
Pervasive corruption
has also fostered a sense of
distrust that is hindering
the development of a local
institutional base, despite
most of the necessary
regulatory framework
being in place.
oreIgn InvesLors und,
to my surprise, even quite
a number of local investors
are still questioning
the trustworthiness
of local companies
hnuncIuI sLuLemenLs,
suId Hun Kyung-Lue,
head of Southeast Asia
investment banking at
Tongyang Securities
(Cambodia) Plc, who
worked on LIe hrsL
Cambodian IPO.
The Cambodian
government could
benehL by LukIng u IeuI
out of the books of other
frontier markets such as
Bangladesh, said Douglas
Clayton, CEO of frontier
murkeL Iund eopurd
Capital.
Public companies in
Bangladesh pay 27.5
percent tax, while most
private companies
must pay 37.5 percent.
Cambodia could, for
example, cut corporate
taxes in half for three
Lo hve yeurs Ior IIsLed
companies, he said.
TIe greuLer
transparency this would
bring might actually
increase tax collections
over LIe Iong Lerm, Ie
added. Reuters
are trying to bolster
an economy that the
World Bank estimates will
grow 5.4 percent this year,
sIower LIun un omcIuI
target of 5.8 percent.
The government is
studying the impact of the
tensions, and will closely
monitor sectors that may
be uecLed, IncIudIng
trade, infrastructure
development and
tourism, and take
suILubIe ucLIons, DepuLy
Prime Minister Nguyen
Xuan Phuc said June 12.
Vietnams Transport
MInIsLer DInI u TIung
said he has not seen any
indication of Chinese
companies pulling back
on investment in the
Southeast Asian nation,
even as the South China
Morning Post reported
June 9 that state-owned
hrms Iuve been LoId Lo
temporarily halt bidding
for Vietnam contracts.
TIere Is no doubL LIuL
economic growth will be
uecLed, suId e Dung
DounI, u HunoI-bused
economist and former
governmenL udvIser. TIe
question is how much, 0.5
or 1 percentage point. Itll
depend on how we cope
wILI LIe ImpucL.
The benchmark VN
Index (VNINDEX) has
slipped almost 5 percent
in the past three months.
The dong has weakened
0.6 percent against the
dollar this year.
Vietnam isnt the only
country in the region that
China has clashed with.
China, which controls the
bulk of global rare-earth
supply, in 2010 turned
o LIe Lup Ior Jupun und
imposed a de facto ban
on exports to the nation
after the captain of a
hsIIng bouL InvoIved In
a collision with Japanese
Coast Guard boats was
detained. Anti-Japan
protests sparked by a
territorial dispute in 2012
hurt carmakers including
Hondu MoLor Co. und
Toyota Motor Corp.
Chinas growing
assertiveness has spurred
Japan to turn its attention
to Southeast Asia and
pledge billions of dollars
of investment. Vietnam
uIso sLunds Lo benehL
Irom LIe Truns-PucIhc
Partnership that would
cover an area with about
$28 trillion in annual
economic output and
excludes China.
Vietnam would also gain
from an Asean Economic
Community planned
for 2015. It has already
seen overseas makers
of apparel, footwear
and electronics set up
factories, spurring a six-
fold increase in foreign
direct investment to $8.4
billion in 2012 from $1.4
billion in 2002, according
to World Bank data.
The tensions between
Vietnam and China in
the South China Sea are
u wuke-up cuII Ior
Vietnamese leaders to
IusLen LIe dIversIhcuLIon
of the countrys supply
chains and development
of domestic industries
that can feed critical raw
materials to the countrys
factories, said Trinh
Nguyen, u Hong Kong-
bused economIsL uL HSBC
HoIdIngs PIc.
I pusI comes Lo sIove,
VIeLnum cun udupL,
suId AIun PIum, Ho CII
Minh City-based chief
economist at VinaCapital
Group, Vietnams
biggest fund manager
that oversees about $1.6
bIIIIon oI usseLs. L`s
an urgent message that
Vietnam should take
measures to lessen its
economic dependence on
China. Its never good to
put all your chips on one
counLry. Reuters
q....~:_~:_._._e...:
._. Luong THi KimOanh
~.,_e ~,~.. ..-
e. .q ~_ . . .~ , .
._ . .e . :.q._ .e. .
~ ..-.~ ~,~.,
~ .q.. . q :.. .:._e. .,. ,
~ ..~.,_e .~:~q.
e:. . ... . ~. :.:~:.
.~.qq.._.
~,~.._.-~_~.
. .~ , . e e~ . _e. ._
~ -e~,.~.,_e ,.
~..'. . . ~:. ..: .q._ _e.
_.. ~.~~.~:....:q
.__e.._~:. -e~,..~.
.~ . . ~ , ._ . . , .q
.:.~_ Vu Tien Loc .
e..~~. ._.:_~:..._.
~.. :. .e:.. -..~:
.q: .~e .q.q ~ . ~ ~.q
~~~._ ~,.:.,~
. . ._. ~~ . ._~: .. q._ .
~. ~_ . . . . , ..
~._~.._ ~.:.....q.
~~~ ~.q._~.._~.
~ q .,..: ._ . ~. .|
..,.- ~..~.~.~
~..q.. ~.~.:.- .
.._..:.,_..|..,_...:.
._ ~..:..e:.~:. e_e..
.. .~ ~ _ e. .:..q, ._ .
. :.q._ ~ ..: _ ~_ .,..
.__e.._.
~ . , . . . - e~ ,. ~
~~~ ... ....~_e.
~. :.. _ . . . . ._ . ..
.~q_ ~.~..|. ''~
., q .,_. _e. ..: ._ . ~.. :. .
e:.. .:~ . . . . .~ .|
~~~ . . . ...~ ~ .:. e . .
. ._ q_ . , ..~ .:. ..~:
_.....
~.. :. .e:.. ~.:.. ~.,
_e..._..:.:.._~..:
q~.:~...:.~:. ..._.
.:. :._.q, .. .:._~......
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
Jupun to Iinunce $q.gm to Improve Idocution
T
he Japan Interna-
tional Cooperation
Agency (JICA) will
fund 2.5 billion ($24.51
million) to help improve
Myanmars education
sector, the agency said.
The project aims to im-
prove quality of teacher
education in the educa-
tional college, JICA said.
Education colleges in
Myanmar are institutes
to train teachers in basic
education.
The said grant amount
will cover for administra-
tion building including
assembly hall and gymna-
sium, classrooms build-
ing, hostels and dining
hall with kitchen. Neces-
sary equipment will be set
up as necessary.
The Japanese agency
said the quality of the ed-
Aye Myat
ucation, especially teach-
ers education, is one of
the reasons that deter
motivation of students to
continue learning.
JICA said the project
will improve education
colleges which will pro-
duce teachers of higher
quality and greater com-
petence who will in turn
upgrade the quality of the
students as well as the
quality of basic education
of the country.
The grant agreement
Ior LIe ProjecL Ior m-
provement of Education
CoIIege wus sIgned be-
tween the Department of
Educational Planning and
Training under the Min-
istry of Education and
JICA, a statement said.
Myanmar Summary
Students attend a local school on the outskirts of Yangon.
U
A
u
n
g
/
X
in
h
u
a
., . ~~:. ...| ...:
q~.q..~. (J ICA) ._
_ ., .:. -._:.q. ~_
e_e. ~.~~.q.~~~ e,.
. ... .e
~..q~,..'.: , ...
~ .,.~_.......:.._e
. q._ . ~. .|~ _ . ._
._:.q. .~:. . . :. ~
~._ .. ._:. , . , .~. .
.:.~ ..~._~:..~q
._ .q: .q:.:.- ~q_
~....:.e_e.~.~~.:..
q,q_qe_.._e.._. e.
~. ~. ~ ._:.q..~:. .
.:.q , _~:.. . q:~..:~
~~ . :. ~._ .~.~.., ..
~:.~.:., .:. ., .~..:~
~~ ...:..,... ..e
..: .:..|~ ._ e . q._ .
J ICA - ~.~.._ ._:
.q..~:. . .:.q .q: .q:.
.:...~q_~.._._~..q,
q_ q e _ . . , .~ . ~. .
~._.. ._:.q.~. ~ ~q_
~..._ ._~..: .~:..:.
.~:...:. ..'..|~.:..
q, q_qe_.._e.._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
Myanmar Summary
David Mayes
P
eopIe oILen hnd LIem-
selves suddenly coming
into a chunk of unex-
pected money and they need to
decide the best way to invest it.
As we are in a situation where
the broad markets continue
to be highly overvalued, the
downside risks of just throwing
the money into the market are
very high. One way to avoid get-
ting caught at the peak before a
crash is to put the money into
a discount brokerage account
und creuLe u wIsI IIsL porLIo-
lio that you would want if the
individual stocks were trading
at the right valuation. The key
to this strategy is that you pa-
Muking u Wish List, Avoiding The Crush
tiently wait with the money in
cash until each company hits
your desired price before pur-
chasing it.
Many of the top investors
of the world follow a simi-
lar strategy. Rather than wait
for the markets to be crash-
Ing, und LIen LryIng Lo hgure
out when you are close to the
boLLom, und onIy LIen hgur-
ing out which companies you
want, it is much better to have
a wish list put together ahead of
time. Then you do not need to
try and pick the bottom of the
broud murkeL move uL uII. You
just need to know which prices
you have determined are fair to
buy the companies you want to
hold long term. When the stock
trades down to that price, you
have a pre-set alert inform you
that it is time to make the pur-
chase.
A good rule of thumb is to try
and buy companies trading at
price to earnings ratios of 10 or
below. If you want a portfolio
of say 20 companies, you may
in fact need to make a wish list
of about 40 (some may unfor-
tunately not dip down to your
valuation target even in a se-
vere crisis). When the market
begins a serious retracement,
you muy hnd LIuL u Iew oI your
desired targets dip into buy
range without the broad mar-
kets even crashing. In the event
oI u IuII on crusI you muy hnd
that within the space of a few
days they all tend to end up as
value buys at about the same
time. Thus it also makes sense
to make a priority list in the
event this happens.
The great thing about this
strategy is that if you pick solid
companies and they survive,
you will almost certainly double
your money at the peak of the
following bull market, even if
that may be some time away. If
the broad markets peak at over
a price to earnings ratio of at
least 20, which they always do
at the end of a cyclical bull mar-
ket, most likely your stock hold-
ings will all be valued similarly.
This assumes earnings can even
sLuy uL over LIe perIod, wIere-
as in reality they could grow if
you have picked stocks where
the companies are still in the
growth phase of the business
life cycle. A few may see declin-
ing revenues if you have not
picked good companies, hence
LIe more dIversIhed you cun
be the better your odds of hav-
ing the majority continuing to
grow.
You wIII never pIck LIe exucL
bottom of a crashing market in
the same way you can never pick
the exact top of a bull market.
Its a fools game to even try, but
by following the long time hori-
zon cycles and using valuation
as a decision making criteria
you can assure that you get a
safe chunk out of the middle of
LIe overuII runge. Your IndIvId-
uals stock holdings will almost
always immediately drop after
your purchase when you follow
this strategy, and your account
value could stay negative for a
few years even. This is because
of the very nature of buying in
the midst of a falling market,
but dont worry as it wont last.
Bear markets are usually fast
and furious, and the following
bull market will always bring
the markets back to their previ-
ous highs if not higher.
Dctid Mces MA protides
ueclth mcncement sertic-
es to expatriates throughout
Southecst Asic, jocusin on
UK pension trcnsjers. He ccn
be recched ct dctid.mQjcrc-
mond.com. Icrcmond UK is
reulcted b the ICA cnd pro-
tides cdtice on tcxction cnd
pensions.
R
e
u
t
e
r
s
on't Ixpect Moch Irom
the Boorse: Ixperts
P
eople should not
pin their hopes on
Myanmars new
stock exchange even as the
government announced
plans to launch a share
market by October 2015,
experts say.
Companies who
originally expressed
interest in forming a
stock exchange are now
hesitant, citing further
capital needs should
the government follow
through with its plan.
PeopIe sIouId noL
expect much in the initial
stages of a stock market.
There will be some trades
May Soe San at start-up, but there
wont be many companies
to trade. Itll be just a
murkeL, suId Dr Aung
Thura, CEO of Thura
Swiss, a local market
research and business
advisory company.
Japan planned to help
Myanmar establish its
stock exchange but pro-
gress has proven slow
with delays arising due to
LIe dImcuILy In orgunIs-
Ing compunIes und hnd-
ing suitable premises.
Training of government
omcers, by DuIwu, u
Japanese company, has
been underway since
2011 with Japan also
sending members of its
Financial Services Agency
to oversee development.
We Iuve gIven LruInIng
and also sent people
overseas. The Minister of
Finance expects the stock
exchange to be in place by
2015, but for now we are
still seeking companies to
IIsL, u source cIose Lo LIe
Myanmar Stock Exchange
program said.
Daiwa Securities Group
Inc. signed a memorandum
of understanding with the
Myanmar government
in 1994. In 1996, Daiwa
Institute of Research
Group and the Myanmar
Economic Bank formed
the Myanmar Securities
ExcIunge Co Ld wILI LIe
objective of launching a
Myanmar stock exchange.
Myanmar Summary
_.,.:~..q~ ~~ ...
.~:~ ~ :.~ ..~:
qee:...~~~.. .:
._e ._~_::...:._.
~, . ~.~ . . , . .:.
.~: _ . . :~.~: ~_
.e:.q, .:..:..:..:.
.._~:. _._~....~~
. .~.,. . .. :..q.~~ . .
~ . ~ ThuraSwiss - CEO
..|~ ~:.~: . q ~._.:._ .
..~: q e e:...~ ~ ~~ .
.|~ . . ~ ._ ~ . ~ .:.~.,
_e .~_q.... ._.:~_.:.
.:.._~~~ .|~..~
q, ~....:.q.,_~_.._e.
._.
~.. :..~: q e e:...~ ~
~ ~q. ....: . e . ~e .
... .. : ~.q: .~~e ..e .
~ . ~ .~ ~._ . ..:.. ..
..~: q e e:.. .~ ~ ~. .
_e. ..'.:, . q ~e ''e ..|~ ~:
.~:.q~ .~._.:._.
_.,.:._ ..~:qee:
...~ ~ e . . q, ., ~ . .
:.q ..: ._ . . .~: ._
~,...:. ..'e.._.q:~
._ ..~: . ~.:.~.:q
._~.~.:. q:.e._.,.q:
~._..~:. ~.~_~.,q
._ ~~ ~ , ....~ ~ _e. ..'
.:.q.. : ..:....,q_.._e.
._~:. .q._.
.~.~:.:..:. ~..|~. ...:
...: . . ~ ~:.._~q~~_..
.~~.,,~...~~q.. ._ ...e
~.~:.. .,_ ... ..~ ~ . ._e~
e . .:.|~e.~~e. ~,.~:~
e: ...~ ~ ..._. .,~ ~. , , _~
.:~~.|.:.~: ...~~~ q.
.._...e ~~~ ~.q:e~q...:..|
~e . ~ . ~. q:e .~ ~.,.q :
q:.e_...~: .~..~~ ..~:~
q ._. . . . . . . e ~~ ~ . q .
~ .,, .. ...~~ ..~:~.....
~~~ .~_~~.:q.~... . .
.|~e .. -e:q ~. ~ ~.~~.~:
.~.,, ..,.:.~....,.~
~.~~ ....~~ ._....:_..
.~: ~ee~:._e..|~e.
~.:.~,.q..._. ...~.:..
~._ .~. . - e:, ~ _ ~ . .
.~,.....:., _~~:_e..|~e.
...~~.~~~..: .~.,,
.~:~._.,e..:~,..,_...,
. , ._. ..~: e ~ . ~ ~ ~ e . .
~:. . ~:.~ . . ~:.~ ~ .,.
~~.~_~~.:q......:._..
~:._e . . :. . .,~e :..q
.e . ~:~ ~_ . . .,.|~e ..
~....e.~.~:~ .e...,
e~ . ~ ~ .qq _ ~:._e ~e e .
~e . ~:~ . _e. .|~e ...~: .q: .
~e . . :.. .. , .~ . ..:~ ~.|
..~:.q. ~ _~ ~ .:q .~ ~e e e
. ~ .~....|...e.
B
lo
o
m
b
e
r
g
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
WB to Iond $1o,m to Connect Mizorum
with Bungludesh und Myunmur
Aung Phyo
T
he World Bank has
approved a $107
million credit for
the Mizoram State Roads
II Regional Transport
Connectivity Project to
improve transport con-
nectivity for Indias land-
locked state of Mizoram
and to help open up the
potential for regional
trade among neighbour-
ing countries.
The Washington-based
lender said the project
will enhance Indias Mi-
zoram and other north-
eastern states road links
with Bangladesh, as well
as with Myanmar, Nepal
and Bhutan.
BeIng sLruLegIcuIIy Io-
cated between Myanmar
and Bangladesh, a bet-
ter connected Mizoram
can open up huge trade
potential for the entire
northeastern region of In-
dia with South and East
Asian countries.
TIese counLrIes wIII be
able to export and import
goods cheaper and faster.
Consumers will also bene-
hL Irom beLLer prIcIng und
cIoIces, suId Onno RuII,
World Bank Country Di-
rector in India.
Connectivity is crucial
for a distant hill state such
as Mizoram which, like the
other northeastern states,
is geographically isolated
Irom LIe muInIund. ong
und dImcuIL LrunsporLu-
tion routes over predomi-
nantly mountainous ter-
rain have long hampered
trade and development.
Stage I of the project re-
habilitated over 400 kilo-
metres of the states core
road network, reducing
travel time by half, and
LrIggerIng sIgnIhcunL so-
cIoeconomIc benehLs In
the project area.
The link to Bangladesh
will facilitate greater bi-
lateral trade and access
to the Port of Chittagong
the nearest shipping
port for the northeastern
region of India, while the
link to the border with
Myanmar will facilitate
connectivity to Myanmar
and the rest of East Asia
and beyond, the World
Bank said.
Mizorams road net-
work is of poor quality
and under developed, and
has among the lowest
density in all of India. It
faces severe constraints
in its connectivity with
larger markets. Travel
from Aizawl to the nearest
Indian port of Kolkata via
the congested, 11 km-wide
Siliguri corridor, also
known us LIe CIIcken`s
Neck, Is u 1,q;km Iong
journey. Prices for basic
staples like rice, sugar, tea
and tomatoes can cost as
much as three times more
in Mizoram and other
northeastern states when
compared with most In-
dian cities or neighbour-
ing countries like Bangla-
desh.
According to estimates,
annual intra-regional
trade in the region can
more than double from
$16 billion to $38 billion
annually, if barriers to
trading with neighbours
were removed. Accord-
ing to another estimate,
investments in transport
infrastructure could re-
duce trade costs by more
than 20 percent in India,
and 12.5 percent in Bang-
ladesh.
The project will fund
91 km of roads that are
design-ready. Roads
that will be widened or
sLrengLIened IncIude: u
zz km secLIon oI un-
glei Tlabung Kawr-
puichhuah road on the
border with Bangladesh;
the 27.5km Champhai-
Zokhawthar road on the
border with Myanmar;
and the 41.7km Chhum-
khum-Chawngte North-
South alignment connect-
ing to the border roads
with Bangladesh to the
west and Myanmar to the
south.
Another 330km of road
works may be considered
for a follow-on project
or uddILIonuI hnunc-
ing when the designs are
ready. The current project
will fund detailed stud-
ies and designs for these
roads (330km) mostly in
the North-South corri-
dor. Many of these roads,
to be taken up in the next
pIuse, wIII be greenheId
projects and will increase
the connectivity both
within the state improv-
ing access to transport in-
frastructure and services
for isolated communities
as well as to key inter-
national trunk roads and
transport corridors that
connect to other north-
east Indian states, Bang-
ladesh, Chittagong Port
and the rest of South Asia,
and to Myanmar.
The bank said the pro-
ject will strengthen road
safety management sys-
tems and initiate pilot
projects to demonstrate
good practices in road
safety engineering meas-
ures LIuL eecLIveIy ud-
dress road safety hazards.
mprovIng LrunsporL
connectivity can play a
vital role in enhancing
growth in Mizoram, a re-
mote, hilly, and moun-
tainous region where
road transport is the
only mode of transport
wILIIn LIe sLuLe, suId
DIep Nguyen-vun HouLLe,
senior transport special-
ist and the World Banks
Tusk Teum euder Ior LIe
project.
BeLLer connecLIvILy
can help reduce freight
and passenger transport
costs, and provide quick-
er and safer access to all
parts of the state and to
neighbouring states and
counLrIes.
Myanmar Summary
Myanmar Summary
Myunmur, LS Hold Iirst Trude,
Investment Irumework Agreement Tulk
Aye Myat
M
yanmar and the
United States
IeId LIeIr hrsL
talks on trade and invest-
ment framework agree-
ment (TIFA) in Nay Pyi
Taw last week.
The dialogue covered
update on Myanmar trade
initiatives and policy
reform, import licens-
ing regime, intellectual
property rights and op-
portunities for bilateral
cooperation as well as ex-
panded economic engage-
ment between ASEAN
and the United States.
The opening of the dia-
logue was respectively
addressed by Myanmar
Deputy Minister of Na-
tional Planning and Eco-
nomic Development Daw
eI eI TIeIn und US
Deputy Assistant of US
Trade Representative for
Southeast Asia and the
PucIhc KurI EIIers.
Aimed at promoting
an attractive investment
climate and expanding
and diversifying trade
in products and services
between the two coun-
tries, the governments of
Myanmar and the United
States signed the trade
and investment frame-
work agreement on May
21 last year, creating a
platform for ongoing dia-
logue and cooperation
on trade and investment
issues between the two
sides.
Under the agreement,
a Trade and Investment
Council was established
to monitor trade and in-
vestment relations be-
tween the two countries,
identify opportunities for
expanding trade and in-
vestment and identifying
issues such as strengthen-
ing of rule of law and pro-
moting transparent and
corruption-free public in-
stitutions and the protec-
tion of intellectual prop-
erty rights, workers right
and the environment.
Following the easing
of sanctions in 2012, the
United States claimed
that Myanmar-US bilat-
eral trade has been in-
creasing but still remains
small.
According to Myanmar
omcIuI sLuLIsLIcs, Myun-
mar-US bilateral trade
reached $104.44 million
In LIe hscuI yeur zo1-1q
which ended in March, of
which Myanmars export
to the United States stood
at $24.78 million.
US Department of Com-
merce has also disclosed
that as of the end of April,
US companies had in-
vested $243.6 million in
Myanmar and US exports
have increased from $9.8
million in 2010 to $145.7
million in 2013.
A worker drives a road roller during the construction of a road link between India and Myanmar at Wang-
zing village, south of the northeastern Indian city of Imphal.
R
u
p
a
k

D
e

C
h
o
w
d
h
u
r
i/
R
e
u
t
e
r
s
~.:~. .~q._._,e
.. . ~. ~ , ...~ .
.e e . ..: .~ . e .q.
. . ~ , . ~~ ~ ~..q ~,
..'.: ~~ .,. ...:.q,
..:~_._.. ~.e.-
~ , . ~ . _ ._ ,e _ e. ._
. ~ q. -.e e . ..: .q.
~.~~.~:..,q,. ...
~ .. . :.. .q: .~e .
~.:.~.:~:...e...
q, ~~ ~ ... ~. _ . . _ e.
._~:. .q._.
~|q~,~._..~ ~.:~
~.,_e ~..|..~,.~~~
~ . e-. ~ q. _ ._ ,e ~:.
~_.:...:~.q .~: _._ ,e
.:.. .:.. q _., .: , ..|
~,.~~_~:. ....,.
.~.e.q..:. .~.~.
.__e.._~:. ._.:_~:.:.
._.
_., .:, .:... ~_~:.. :
.e:-e:~~~_ q .,~ . ~
q..~.,, ~.e~.q.~:
...~....~ .~:~:q,
~.q ~:q . .~ , ~ , . e
.q.~.:.~.:.~: .~. .
~_e. .~.~ e......
.:_e..|~e.
_.,.:.. ~..q~,.
~ ._ ... .~ , . e . .
q .. ._. . . . . q:..:~ _ .
. .: ~. q. ~ . , . ._ ~.~
~.,_._ .~: ~ _.. . . ._~: .
.q._.
~. .| ..:~ _ . ~
_.,.:.-~,.e.q.~,.
._.. ...:.. .q._._. ._.:..
..:. ..~,...,..:.
. ~_.,~.,....|...:q
~ .q.~. ~.. .. :.~_ .
~:.e..:.. ~..q~,
_._.:.~~_~:. ...:..q.
, ... . . q:~ . q. .:. .|~
._. _. ...:.q..:
q .. ._. . . . ~.,~:.~ .
q,. ~,.e.q.~~,.
~, ..: . . .. q:. :.~
...~~. ~._.q,._.
.|~._.e....:~_.
.:.~q ~,.e.q.. q...
_.....~:.~ ~_.:.
_.. ...~_~:. ~,.e.q.
. q .. ._. . . . ~ . q. .:.~ ._ .
..:_~_.:.q, .|~._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
Myanmar Summary
Myunmur: Adjosting Ior Growth in The Iinunciul Sector
A
uthorities in
Myanmar are
determined to
foster economic progress
und Iuve pIuced hnuncIuI
inclusion on their list of
priorities. In an attempt
to tackle demand for
Increused hnuncIuI
services, Myanmar has
taken numerous steps in
the last 24 months, such
us udopLIng u ouLIng
currency, liberalisation of
the insurance industry and
the independence of the
Central Bank of Myanmar
(CBM). Following these
adjustments, 2014 is set
to see the CBM grant
operating licences to
foreign banks, while 2015
has been set as the target
date for the establishment
oI LIe Yungon SLock
Exchange.
The unbanked
populati on
According to a recent
joint study by the UN
Capital Development
Fund (UNCDF) and
the UN Development
Programme called
Making Access Possible
(MAP), only 4 percent of
families surveyed have
bank accounts in their
own names, 39 percent
have no access to any
kInd oI hnuncIuI servIces
while 31 percent opt for
unreguIuLed hnuncIuI
assistance such as money
lenders or borrowing
money from family or
friends. Sponsored by the
UNCDF and the multi-
donor IveIIIoods und
Food Security Trust Fund
(T), LIe zo1 MAP
survey covered 5,100
households and suggested
that while there is strong
potential demand for
regulated services,
currenL producL oerIngs
do not match the needs of
the unbanked population.
MIcrohnunce InILIuLIves
are being undertaken to
address the issue, and
Dr Maung Maung Thein,
the deputy minister for
hnunce, unnounced uL
the Financial Inclusion
Roadmap Conference
in Nay Pyi Taw in May
that the ministry aims
to increase the banked
Michael Nesbitt
population from 30
percent to 40 percent by
2020.
Br anchless banki ng
In an attempt to increase
uccess Lo hnuncIuI
services, many local banks
are opening branches in
ruruI ureus. However,
critical momentum for
hnuncIuI coveruge Is onIy
expected to be gained
once infrastructure
improvements are made
within the telecoms
sector. Similar to other
emerging economies,
local banks are positioning
LIemseIves Lo oer
mobile banking services.
U Pe Myint, managing
director of CB Bank,
LoId OBG, TIe mujorILy
of people have limited
access to the internet.
Mobile banking gives our
people the chance to do
their banking activities
wILI greuLer euse.
With two international
telecoms providers set
to launch their services
in 2014, Myanmar is
well positioned for
a rapid rise in both
mobile penetration and
mobile banking activity.
TIe IuLure oI personuI
payments in this country
is SMS banking, similar to
success stories in Africa,
such as Kenya where
mobile banking plays a
mujor roIe, Joe Burker-
Bennett, a consultant for
Tun Foundation Bank,
told OBG.
For ei gn par ti ci pati on
According to the
Myanmar Investment
Commission, approved
foreign investment
nearly tripled to $4.1
bIIIIon In zo1J1q hscuI
year from $1.4 billion in
the previous year. With
an expanding economy
and underdeveloped
banking system, many
international banks are
vying for an operating
licence in the once
IsoIuLed nuLIon. However,
feelings are mixed, as
Daw Kim Chawsu, head
of transformations at
Kanbawza Bank (KBZ),
LoId OBG, TIere ure
two trains of thought.
First the entrance of
foreign banks will assist
in the development of
the sector, and second
that they will squash
local competitors out of
LIe murkeL. SIe udded,
ocuI bunks cun benehL
from this development.
Infrastructure, funding,
technology and expertise
are all things that
international banks bring
Lo LIe LubIe.
Foreign banks can only
enter the market in the
form of representative
om ces uL presenL Iowever
the CBM plans to grant
beLween hve und 1o
IIcences LIIs yeur. ocuI
media reports suggest
that the newcomers will
be faced with certain
restrictions, such as
not being allowed to
engage in retail banking
or dealing uniquely in
foreign currency.
Although local banks
may be concerned by
the possible role of
foreign-owned banks
in the future, there is
some recognition that
their presence may also
encourage international
companies to invest in
Myunmur. U TIun wIn,
the deputy chairman of
KBZ, LoId OBG, oreIgn
banks should be allowed
in on a step-by-step basis.
This will assist with the
development, as well as
the protection, of the
secLor.
WIIIe LIe hnuncIuI
sector in Myanmar is still
decades behind its ASEAN
neighbours, progressive
steps within insurance,
accounting and telecoms
place the country in good
stead to leapfrog years of
technology and establish
a modern banking
und hnuncIuI servIces
IndusLry. However,
this depends greatly
on the CBMs decisions
regarding the entrance
of foreign banks and the
restrictions they will face.
Michcel Nesbitt,
editoricl mcncer jor
Mcnmcr ct Dxjord
usiness Group (DG),
is in chcre oj producin
sector specijc resecrch
in Myanmar. Based
in Yangon he works
clonside c tecm oj
cnclsts to produce
OBGs Flagship annual
reports uhich oger
unique insihts coupled
uith c comprehensite
retieu oj intestment
opportunities in key
routh sectors.
The Visa Inc and Mastercard Inc logos are displayed on the side of an automated teller machine (ATM) as
a customer withdraws money at a shopping mall in downtown Yangon.
D
a
r
io

P
ig
n
a
t
e
lli/
B
lo
o
m
b
e
r
g
_.,.:~:~:..:.~.,_e
,.~- ..:.....:.~.|~~
.._~..q: ....:..:.
_.. . .~ q _. .. .. :..q.~ .~~
.q.~~ ~ . ._e~ :._~._ .
. ._~.. q:~, ..: . .:.
~~~ ...~~.~:....:
._ . _. ~~ .~ q ._ _., .:
. ~.,_e e. ,.~~ .
~. ..| ..:.. :_.. . . q_. .
.._~...e.~__..~:
..:q~_.. ~:....,.
~:. . ~ .. . ..._. .. . ~
..._ -e~e._._..~
._ .~.|~~ _e. ._ .~. .|
, ._ .~.:.~_. . ~~, ~
_., .:. .~: -e ~ . .
_.:.~ .:.. . . ~ . . .
.:......_ _e. _. . ~~ q, ~ ,
..~: ...~ ~ .~ e . . ._
_e.._.
~. : ~ ... ~e ~._ .
~.._e.._ UN Capital
Development Fund (UNCDF)
. ~ ... e _e ..q.~. ~.
~.._e.._ Making Access
Possible (MAP) ~- ._~:
....~ _....._ ....|.
.. .:. ~. . ~q . .:.. .:.-
, q:..,..: ,.~~._
. ~~.~:.:.q_.. ,
q:..,..: ._._.._~.
~,..:.~.qq_...q_~
~, ,~ q:..,..: ~q:..~
. ._ ~.~.:~ ~. . :._ e.
._ ......:.. ..:..
. , ~..| .~. .. :. .
... :._. ..:.~ . ..:. ._~.
~, ..: . . ..:qq ._~: . . q
._ . UNCDF. Livelihoods
and Food Security Trust Fund
(LIFT) ~. ...~_.._
~~, ... MAP ...:.
._ ~..:...|. ~~~
~:. _...._.._e._.. .~q
. . ..: . .:.._ ~ . . , .
. .~..q._..:.-
.~..~. ~~_..q...
.|.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
Myanmar Summary
TM
2 colx x 26 cm
Giti Notice
Iirst Commonity-bused Toorism Initiutive
Annoonced Ior Kuchin
Ministries join hands to support responsible tourism in Indawgyi Lake
A
new ecotourism
initiative will be
developed to en-
sure visitors to Indawgyi
uke WIIdIIIe SuncLuury
in Kachin state contribute
positively to its ongoing
conservation manage-
ment, a nature conserva-
tion group said.
HIgI IeveI represenLu-
tives from the Ministry of
Environmental Conser-
vation and Forestry and
MInIsLry oI HoLeIs und
TourIsm (MoHT) joIned
hands to agree on the im-
portance of engaging local
stakeholders in develop-
ing a tourism strategy for
the lake and its globally
important wildlife.
VIce MInIsLer oI MoHT,
Dr Sai Kyaw Ohne, said
that creating a responsi-
ble, sustainable tourism
strategy that involved
and engaged local com-
munities could prevent
mistakes that have been
made during the devel-
opment of other regions,
IncIudIng nIe uke, LIuL
can lead to serious envi-
ronmental degradation.
TIIs progrumme cun
help to support everyone
who lives here and is a
good example for other
communities in the coun-
try, other countries in the
region, and in fact other
purLs oI LIe worId, Dr SuI
Kyaw Ohne said.
A workshop to discuss
the new strategy was held,
involving local commu-
nity representatives, the
Myanmar Tourism Feder-
ation and Myanmar Tour-
ism Association repre-
senting the private sector,
and relevant government
agencies.
Wai Linn Kyaw
Attendees agreed on
a vision for responsible
tourism development at
nduwgyI uke LIuL wouId
help to conserve the natu-
ral and cultural heritage
of the area, while provid-
Ing reuI economIc benehLs
to local people.
The workshop builds on
the momentum created
by Fauna & Flora Inter-
nationals (FFI) launch of
a community-based eco-
tourism initiative at In-
duwgyI uke IuLe IusL yeur.
FFI helped commu-
nILy members Irom on-
ton Village at Indawgyi
uke Lo Iorm 'nn CIIL
TIu - overs oI nduw-
gyi, a community group
dedicated to support local
livelihoods through the
development of ecotour-
ism.
FFI has provided train-
ing to the young villag-
ers, as well as kayaks and
mountain bikes that can
be rented to tourists to
explore the beautiful na-
ture of the lake and its
surrounding forests.
We ure supporLIng
sustainable ecotourism
which creates revenues
Ior IocuI communILIes,
says Frank Momberg, FFI
Myanmar Director.
TIe kuyuks In purLIcu-
Iur oer u nuLure experI-
ence in complete lake se-
renity, instead of joining
the tourist hordes in noisy
moLorbouLs on nIe uke,
which is Myanmars most
vIsILed nuLuruI sILe.
Before FFIs Inn Chit
Thu initiative, Indawgyi
tourists could only expe-
rience the lake through an
expensive motorboat ride
now tourists can choose
kayaks, bicycles and
walks instead, having an
opportunity to feel closer
to nature, and without us-
ing noisy, unsustainable
and expensive methods.
Despite quadrupling
visitors since the launch
of Inn Chit Thu, inter-
national tourists to In-
duwgyI uke remuIn very
small, an area the group
hope to build in coming
seasons.
nduwgyI uke Is sLIII In
a pristine state with thou-
sands of migratory birds
arriving each winter from
their long journey start-
ing in Siberia for resting
and wintering in Indaw-
gyi, turning the lake into
a heaven for bird watch-
ers and nature tourists. It
is hoped that by following
a strategy for responsible
tourism in a protected
area, tourism can help
to balance the needs for
nature conservation and
economic development.
~._._,eq ~..~:_~.
.~:,.~q.:,....~:.
.:..q:~._.~._ .q.
._ . :.~ ~. .|...~
..:q~.~q..: .:~
.~ ~, .~ , .. . ...:
.q :~ .q....,..~ ~.,
~~e . ...| ..|~ _ . ._ e
.q .. :.. . , .._ .. . ...
~.q.~ ~..~.:. e_e.
~.~~...__e.._.
~..~:_~.~,. ~..|
~, -~. ~. :. . . q:
~.q..|..: .~:,.~q.:,
. :.~~ ~ .q .. :.. . , .
,_ .-e:~. . e _e .~ .~~ .q.
~ .....~...~.~.
.:.. _....:q~_..-
~.q..|.~ ~~~~....|.
..:q~._~..: .~~,.
~ , .. . ..q.. .. .~:
.q.q:~,_~._:,. e~e.
.q..:..:.q.~,_~._:,~.
~. _. ~ e .:.. e .:.~
..:~ _ . _~._ .~:~, .
..:~. e _e .~ .~~ ..:
.q..:...,.~~~ ,_.
-e:~..e,~._... e.
. . , .. ~ .... _._ .
. -. ...| ..|~ ..: q ~ .
~ ~....~, ~.|~~ ~_.:.
....:.-e _e .~ .~~ . . . , .
.:...: q ~ . ~.~:~~ .
.:~.~ ~, .~ ~. , ~. .
ee..~...~.~_...
..: ~.:..:._..._....~
~:~e.._e e~e.
.q . . :. .:.q. ~, _ ~ . _:,
. ~ e~, _~ ...|~ ~:. ..~:
~,.~ ._.:._.
Indawgyi Lake.
F
lic
k
r
/
M
o
r
g
e
n
s
t
u
n
d
Brown-headed gulls at Shwemyintzu Pagoda at Indawgyi Lake.
B
jo
r
n

O
le
s
e
n
/
F
F
I
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Ioreign Iirms to be Allowed in
Roud und Bridge Constroction
Myanmar Summary
F
oreign companies
are to be allowed
to bid for road and
bridge construction con-
tracts thanks to changes
in rules from the Ministry
of Construction.
In the past, only local
companies were allowed
to invest through Build-
Operate-Transfer (BOT)
agreements with the gov-
ernment, while it was
mandatory for foreign
hrms Lo LIe up wILI u IocuI
partner.
Foreign investment in
the construction sector
currently stands at $37
million, with South Ko-
rea, Japan, Singapore and
Thailand being the high-
est investing countries.
Domestic investment
stands at K733 billion
($751 million), according
Lo omcIuI duLu.
AccordIng Lo LIe or-
eIgn nvesLmenL uw,
construction was limited
to foreign companies col-
Phyu Thit Lwin laborating with local
companies. Now, with
foreign companies bid-
ding for road and bridge
construction local compa-
nIes wIII hnd IL u bIg cIuI-
Ienge, IocuI consLrucLIon
businessperson U Paing
Soe Yur Kyuw suId.
The lack of skilled work-
ers and access to technol-
ogy deters local business-
es from infrastructure
development programs,
industry insiders say.
The Myanmar Construc-
tion Business Association
said it intends to tackle
skills shortages through
training programs.
Hoosing epurtment to ruw
New Town Pluns
Myanmar Summary
_., .:. ~ . ..q~. . , .
. ~~ q ..:_. _ .. :.~:.
_. -q e:. . . q, _. _.. .
~ , ... .:.~ .q.. .~ q ._
e ..:~ . . .q.~, _~ ._:,
Mahabandoola bridge in Yangon.
The Department of Human Settlement and Housing Development (DHSHD) is formulating urban man-
agement strategies to cope with Myanmars growing municipalities.
.. .~ ~:...:~ . . .q.
. . , ..:.~ e. ~_._ ~ .
..:~ ...q.~.~.:.~ .:
~ ~ .,. _e . . ~ ..: q ~
._..q:. e.~.| ~..|
. . , ..:._ . _.:...:~
...q.~.~.:.~.| ..~
. _..~: ._ _e. ._~: . ..:~
...q.~,_~._:,. .q._.
W
a
i
L
in
n

K
y
a
w
.~q~..:~...q...
, ._. _.:.q .. ._. . . . ..:~
.:~..q~, ..'.: , .,.
.~: q _. . .~: ~ q .e:. .,
.~:. ...:.. ~.:.
. . .:.q:~ q .. ._ . . . :.
._~:.. ..:.q..._...
..: ~.. ,, .eq_..
. ~ e~.:.. .. . , .~_e.
q.~_.,._~:. _.,.:.
q..._.....~:.q -.:q.
.:.~q .q._.
~.~. ,~ ..:~...q.
~_.: _._~...:~..
.q.~ . ~ .~ , _._ ...:~
. . .q.~ . ~ .~ ~_ ~:.. :
_. . . ~:..~: ..,~ ~. ,
_e.~e. ._.:.q..._....
...~q. q .~: ..:~ . .
.q.. . , ..~ . :. _.:.q .. .
_.....~~ _._~...,.
q .~ , e~ .. . . ~ . _.
:.~:. q.|~e.~.. _._
~...:~...q.~.~.~
~...~.q~... ~~:.
..:~ . . .q.. . , ..~ . :
~ ~ .,. , . _.:...:~
...q.~.~.~~.| ..~
._..~~:e: _._~.~
..,.q.~~~~ .,..'.
_~ .~. q. . .|. ''e ..:~ . .
.q.. . , .q ~. ._e. . .
...q:.~:~ ._.:._.
_.,.:.~ ..:~..
.q.~_._ ~q ,~e,_e
e _ e .~ .~~ .:..: ._ .
_._~...,.q.:.~~~
,_ .._:.:. . . e _ e ..:q,
.~..,_.. ~..~...:.
. :.._ . q:..|..,. _ e. q:
_., .:. ..:~ . . .q.. . , .
q .:.~. .~.,_e , .~_
~~._.~..~...:.
.:. ..' , ..:.q.~~ ~
. ~, .. :..... :.q, . .
..:q~.~q ._~:. .q
._ .
D
a
v
id

R
o
s
s
in any town plan. If we
implement this project,
we require properly im-
plemented technology
und InvesLmenL, suId Dr
Kyuw uLL, cIvII engIneer-
ing expert and the advisor
to the Myanmar City Plan
und secreLury Ior LIe Yun-
gon City Master Plan.
After drafting the new
projects, the department
intends to implement
sIorL-Lerm (hve yeurs)
projects in Mandalay,
Mawlamyine, Meikhtila,
Taunggyi, Moe Gok, Pyin
Oo wIn und Bugun us u
priority.
Remaining cities will
be dealt with in the long-
term (30 year), with these
projects requiring addi-
tional technical support
from overseas.
_. q :. ~ .~ . e _e ..q. .. ._:,
. .q._. ..~..:..:._
...q ~.~~,:~_._.
..~,.~...:..q...,_..
_e. _. . ~:.~ ~:.q _ e _
.....~: ..:q~.:.._
_e.._.
. . ~ , .~.. .q.. _ . .q
.. ~ ~ _..e ._. .. . . , .
.~._..~.~:~_.e:.:
_e. ~e .. . ~ , .~ . . . ~~ .
~_. ..~ .q.. e . . :.~e ''
e _.q:.~.~.e_e..q....
_:,. ,_~:..q...~..~
._.:._.
T
he Department
oI Humun SeLLIe-
menL und HousIng
DeveIopmenL (DHSHD)
has released a draft plan
detailing urban manage-
ment strategies to cope
with populations exceed-
ing 100,000 people in
growing municipalities.
The department, which
is under the Ministry of
Htun Htun Minn Construction, says the
plan for new towns aims
to direct and manage pop-
ulation growth in both the
short- and long-term.
Once we hnIsI our
draft we will submit it
to the president. We will
then implement the pro-
jecL. We expecL Lo hnIsI
the drafting of the plan
IuLer LIIs yeur, u dIrecLor
of the department said.
The current draft in-
cludes the expansion of
existing town and city
footprints, land man-
agement, new roads and
housing zones in conjunc-
tion with economic devel-
opment for 32 townships,
which have populations
exceeding 100,000.
We cunnoL jusL ex-
pand a city. We need to
manage according to
its area. Transportation
plays an important role
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
24
PROPERTY & REAL ESTATE
Myanmar Summary
Jupun to Lend $m to
Boild Thuketu Bridge
J
apan is going to pro-
vide 4.22 billion
($41.25 million) to
build a new bridge in Tha-
keLu In Yungon, Jupun n-
ternational Cooperation
Agency (JICA) said.
Under the grant, a new
four-lane extradosed type
bridge and access roads
will be constructed.
TIIs brIdge, LIe hrsL oI
its kind in Myanmar, is
to have 253 metre length
with construction starting
April 2015.
The Public Works de-
partment, Ministry of
Construction, will con-
Zwe Wai struct expansion of ap-
proach roads to the new
bridge, JICA said.
The project aims to en-
sure better mobility and
accessibility in greater
Yungon cILy, conLrIbuLIng
to smooth transportation
to cope with increases
in economic activity and
rupId Lrumc growLI In
Yungon CILy und ILs sur-
rounding area.
The agreement was
sIgned by U Kyuw Inn,
managing director of
Public Works, Ministry of
Construction, and Masa-
hiko Tanaka, chief repre-
sentative of JICA Myan-
mar.
Pansodan bridge in Yangon which connects downtown to Thaketa.
W
a
i
L
in
n

K
y
a
w
.,. .~~:....|.
..: q ~ .q. .~ . ._
q,~,~. .:.~~_.,e
~ ~_ ..:~ ._ ~ ~:...
~~~ e,.. , ...
.e ~..q~,..'.: ,~
... .,., ~_.:~.
.:.._e .q._.
~. .|~ _ . . .. _e ..... .
. :.~ ~:... ~ .:._ ~~
. . . -_. .~ .~ ~_ ..:~
.:..__e.~: e.~~:.-
~q_.: , .~:q._e
.q._.
~. .| . . ~ , . ._ .e:
q, ~ , _. ~~ . _., .: .~
. e .q.~_~ . e ~ . :
.~ . e . :.. q, ~~ ~
q_qe_...,:~.: ...:..q.
e _e .~ .~~ .:_. ..,:~ . .
~. ., ~_ .:.. . . :._ .:..:
._ q, ~ , _. .~: .~ ~, .~
-qe:~ e:._~:.~..
~ ..:..q, q_qe._
e J ICA . ._~_:.._.
~. .|~ ~:.~_ ..:~ .q.
..~,.~~~ ..:~...q.
~,_~._:,.,.,..|,~~:
..~: . .. JICA Myanmar
- ~ e .:. .e ~_ ~ . ~~
.:.:e ~ ~ ~ ..:~
.~ . ~ .q. .. _~_. ._e. ._ .
Chinu's Property Murket Muy Not Be As Bud As It Looks
T
Ie hrsL IuII In CII-
nese home prices
in two years has
crystallised worries of a
messy end to a housing
boom, but some analysts
say fears of an imminent
collapse similar to that in
the United States after the
sub-prime crisis are over-
blown.
The property market
Ius dehnILeIy been sIow-
ing this year, and is cited
as one of the main risks to
the health of the worlds
second-largest economy.
But high down pay-
ments, low household
debt, some government
support and expecta-
tions of more to come
have some experts fore-
casting the downturn will
be short lived, with prices
expected to recover as
economic growth steadies
in the second half of the
year.
Average new home pric-
es across 70 cities fell 0.2
percent in May from April,
and the annual rise of 5.6
percent was the slowest in
13 months. Prices fell on a
monthly basis in 35 cities,
omcIuI duLu sIowed.
I you Iook uL CIInu
from the balance sheet
point of view, the only
balance sheet that has
not been destroyed is the
IouseIoId buIunce sIeeL,
said Bo Zhuang, an econ-
omist at Trusted Sources,
a UK-based investment
consultant.
Xiaoyi Shao and
Koh Gui Qing
L Is LIe mosL IeuILIy
balance sheet at the mo-
menL.
The International Mon-
etary Fund agrees. In a
paper published in April,
it ranked China as having
the fourth-lowest level of
household debt among
11 Asian countries, at
around 12 percent of its
gross domestic product
(GDP).
In New Zealand and
Australia, where house-
holds are the most indebt-
ed, debt levels exceed 90
percent of GDP, IMF data
shows.
Downpayments of 30
percenL Ior hrsL Iome
purchases and between
60-70 percent for second
homes, and laws which
make borrowers liable
for debts even if they de-
fault on repayments have
banks viewing mortgages
as among their safest as-
sets.
It also means those who
fear that a sharp decline
in home prices would rock
CIInu`s hnuncIuI secLor by
inundating banks with
bad debt may be overstat-
ing the case.
Further, a reduction in
the amount of reserves
that banks must hold to
boost lending to small
hrms und LIe Iurm secLor
has inadvertently freed up
some cash for the proper-
ty sector.
unds ure IIke wuLer,
said Fan Xiongchong,
vice-president of Sun-
shine 100 China, a mid-
sized developer based in
BeIjIng. EvenLuuIIy, IL
wIII more or Iess ow InLo
the property market via
vurIous cIunneIs.
Not wi thout r i sks
This is not to say the
housing market, which
accounts for about 15 per-
cent of GDP, is without
risks.
For one, despite the
moderation this year,
prices are still near record
IIgIs und uordubIIILy
rates near an all-time low.
Construction has also
fallen sharply this year,
wIIcI wouId uecL em-
ployment and spending.
The statistics show that
Wenzhou, a wealthy city
with a thriving private
sector, has been hardest
hit in the current slow-
down with prices down
4 percent in May from a
year ago.
Experts disagree about
the extent of housing
oversupply in China, but
agree that slower prop-
erty investment would be
a drag on the economy. A
sharp drop in home prices
would destroy household
wealth, undermining con-
hdence und spendIng.
ComIorL comes Irom
the fact that we see the
Chinese government tak-
ing action - they are not
oblivious to what is hap-
penIng, suId ondon-
bused YerIun Syzdykov,
an emerging markets debt
fund manager at Pioneer
Investments.
TIuL`s wIy LIIs 'sLop-
go policy... on one hand
LIey wunL Lo cooI o LIe
market, and on the other
they dont want it to hurt
growLI, Syzdykov suId,
referring to earlier and
prolonged government
attempts to rein in red-
hot home prices.
No bi g cr ash
The biggest problem is a
misallocation of resourc-
es, suId TIng u, un econ-
omist at Bank of America-
MerrIII yncI.
With only about one-
third of the 1.3 billion
population living in ur-
ban centres, too many
homes that will never be
hIIed Iuve been buIIL In
small cities. That would
likely see a sharp spike
in bankruptcies among
smuII deveIopers, u suId,
buL wouId noL cuuse u bIg
crusI.
Wages in China are still
growing faster than house
prices, with average in-
comes in cities and rural
areas climbing 10-12 per-
cent last year, on par or
faster than a 10 percent
rise in property prices.
TIIs Is u cycIIcuI correc-
LIon, suId RoseuIeu Yuo,
an economist at Gavekal
DrugonomIcs. We see
no signs of imminent col-
Iupse. Reuters
Myanmar Summary
B
lo
o
m
b
e
r
g
. , . ._ . . . . ~~ .
~e , ~ ._ . ~~ .:. ._
~q~.-~._.._. ....,.
.:.._..:~.:._.. _...|
.~q ~ . _. ._.... , ..:.. :
....-_..~~. ~.
q:..,._.~~.:..._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
Myanmar Summary
Myanmar Summary
Police Lnits Turget Trumc Violutors to Corb Gridlock
I
n un eorL Lo uddress
some oI Yungon`s worsL
Lrumc grIdIocks, nIne
police groups stepped up
enIorcemenL, IssuIng hnes Ior
Lrumc oences In sevenLy-nIne
IocuLIons wILI mujor Lrumc
problems, according to Second
CIIeI PoIIce Omcer Inn HLuL.
The police groups will take
action against cars that violate
Lrumc Iuws sucI us IIIeguI purkIng
and reckless driving, he said.
DrIvers cuugIL vIoIuLIng Lrumc
Iuws wIII be hned beLween
K10,000 and K500,000 ($10
to $500) depending on the
violation.
Drivers issued citations must
puy LIe hne dIrecLIy Lo Yungon
City Development Committee
(YCDC).
Inn HLuL, wIo Is uIso LIe Heud
oI No.z Lrumc poIIce unIL, suId,
TIe nIne Lrumc poIIce groups
will cooperate with police units
from township administrations
und YCDC In order Lo remove
illegally parked cars.
Ines Ior IIIeguIIy purked curs
will vary and can range from a
warning to suspension of their
drIver`s IIcence. Curs purked In
a designated no parking zone
will be towed, he added.
Kyaw Min From the end of 2013 through
May of this year, nearly 1,900
illegally parked cars were
Lowed, uccordIng Lo un omcIuI
unnouncemenL Irom LIe Lrumc
police unit.
During the third week of
Muy, Yungon suw q,oq1 Lrumc
violations. From end-2013 to
April 15, 2014, 8,154 cars were
towed from no parking zones,
the Vehicle Control Committee
announced.
q, ~ , _. -e: ._~:~. ~_ .._
.,q: .~ ~, ~ q~. .~~:
e:,.q~.e ~e~.e._ e:
._~:.~..~ ._eq.....:..__e.
._~: . ~. ~ e: , .q ~. e . . .
.q.._~..._~ ._.:_~:.._.
e: , .q ~. e ~ .e ._ q, ~ , _.
- e: ._~:~. ~_ .._ .,q: .
~ ._.~...e:q.,:._.. ._.
~. .. . :..: .. _. ..._ ._ .~. ..
._e:.:.~ ~.q.e.:..__e.
_. . ._ .~. .. ._ e: .:.~.,_e
~..,._~...'.~__ .~.
~...:.. |..,.~ q,~,_.
.~: ._ . .:e:.q..~: .~ .
ay;aqmif &rnf jzpf aMumif ; ,if ;u quf
.~._.:_~:.._.
.q.._~..._~ e....~~e
~ e:,.q~.e_.,e~....q.
..,. q,~,_..~:._..:e:.q.
.~: .~ ,e ._ .. q ~. e .~:.~
....|._.. e....~:.~ _...~:.|.
.~ . ..: ~:~.~: q, ~ , _.
.~: ._ . .:e:.q..~: .~ ~ .
.~ . ..: q~:. ._ .~. .. e:
~..'. ~_ _. . _.. .~ .~ ~. .. .
~ _.:._.:.,:.. q ~e . .. _e~ ~:
.....~: .~.,~~:.._e
~.q.e . ~. .. .q .|~e ''e ._.:
_~:..._.
q,~,_.~ e.~.| e:,.
q ~. e ~.,_e .q. ,:.q.,q:.:.
.~.~_.. e:.q.,:.q.,q:~
e:q.,:..|~ ~q,._e eeq:..q
._~:. ~~, .....:.... ...
~,~ e:.q.,:.q.,q:~ q.
..: ._.~...e:.:. eeq:..q.
e: ~.q~~ ~ . : ..: .~: ~:.~. .
.q ~~~ ,..|.q_._e.._~:. e:
._.~..,.....q.q~.e. ~
_.,:..~.:.~q .q._.
...~~e.~ q,~,~ e:
._.~...e:~e~. ~~ ._e..:..
_.. ~~, ... ..:.... .~~:
~~, ... -_. ~ q~.,~ e:
.q. ,:.q.,q:~ q. ,:...: e: . .
.q ~, .~ ~q,._e eeq:..
._~:. . q._ .
Sukoru to OHer Iree Cur Servicing
Myanmar Summary
S
akura Car Sales Cen-
tre will give buyers
who purchase cars
from the centre free vehi-
cle services for one year, a
compuny omcIuI suId.
The centre opened on
Kabar Aye Pagoda road
last month with new auto-
mobiles and used cars for
sale.
Over 90 percent of the
automobiles at the centre
are Japanese, 80 percent
of those vehicles manu-
factured by Toyota, the
companys director Ko
Kyaw Min Zaw Aung said.
By provIdIng cusLomers
with maintenance and sup-
port services, we hope to
increase consumer interest
In LIe busIness, Ie suId.
Sakura will provide in-
surance to customers who
purchase cars from its
dealership with cost de-
pending on the type and
age of the vehicle sold.
The company will co-
operate with the World
Treasure Bank to organ-
ise the long-term install-
ments of these agree-
ments.
But another car dealer
.:~ q:~:.~.q: .. ~:.
.q:..._~.._._..~:..:.
~ ~...~~. ~.._..
.... :.._ _e. ._~: . .:~ q:
~:.~.q: .. ~:. .|, ~ ~:
~~e~ ~.~:.~:.~:
~ ._.:._.
.:~q:~:.~.q:..~:
~ Brand New ~:..:.
~_. .,.. ~.._._..
~:..:.~ .q:......:.._
_e._.. ~..|~.q:._..,.~
.., q~ ., ~ ~. :.~. q:.
.. ...'~ e . . . ._~: .
.q._.
~ . ~ q ~ , e: Service
~e ~., ~ _ _. . ~. . . Free
Service ....|~e. ~:..
.~ .~ _ , .. . .q._ Plan
.~~ Train .._.. ~~
. ~:~~. ~~ , . .~ Free
Service .... :.. :.|. ..: .~:
~:.q ~_ .:.. . e . ~. ~
~. ..~ e ~. ~ ~. ..~
~ .. ~. . . ~~ .. q ~..
..e_......:..:.|''e
~ .~: .~: .~: ~ ._.:._ .
.~ q .:~ q:~.q: .. ~:
~ .q:...,._ ..:.~:
~:..:.- q:..,. ~ .~:
._ ., ~:..:._e. _. . ~. .|
.,~:..:.~ ~e~:~:.
~..~.:..:..: q:..,. ~
~.|~._~:. .q._.
Ko Aung Thein said de-
spite the improvements in
Myanmars car industry it
will take time for consum-
er demand to increase.
TIe probIem Is noL eve-
rybody in Myanmar can
purchase a car.
People earning low in-
comes jusL cun`L uord
the cost of purchasing
und runnIng u veIIcIe, Ie
said.
Jupun Pluns Ample Sopport
Ior Ioel Cell Cur Technology
T
he Japanese gov-
ernment is plan-
nIng Lo oer umpIe
support to popularise fuel
cell vehicle technology as
Toyota Motor Corp and
Hondu MoLor Co prepure
to launch hydrogen-pow-
ered cars in 2015.
The government drafted
a timeline that spelled out
targets and actions over
the next 25 years to com-
mercialise fuel cell vehi-
cles and boost use of hy-
drogen energy in general.
The move comes as
Jupun`s ruIIng IberuI
Democratic Party consid-
ers supporting the tech-
nology through subsidies
and tax breaks, so that by
2025 fuel cell vehicles can
sell for around $20,000
or a little more, the same
price as popular gas-elec-
tric hybrids.
A fuel cell vehicle,
which runs on electric-
ity generated from cells
that combine hydrogen
with oxygen, emits only
water vapour and heat.
Yoko Kubota TIe veIIcIes cun run hve
times longer than battery-
operated electric cars, and
their hydrogen tanks can
be hIIed In jusL u Iew mIn-
utes. Reuters
~~ ...~ .,~..q
._ .~q~.,_ .q.,..:.
.~ q ._ eqe . . ,_.._:
~. ._. ~:..:. ~ . . .q.
~~~ ~:.~.~..._e.._
~ e ~:. e , . ...: .~: ~:.
~ . ~ ~ ~:..:.. :~ _ .:~ .
q, ..:.._e .q._.
~..q- .,.._..:_~:
.,~ ~_.,...:._~..~q
.:._ ..~ .,.
._ eqe....:.~:e:
.:.~ ...:..q.~q ~..
.q: ... q, q_ q e :.._
e.q._.
eqe..~:..:.._ ..
.. .:~~:._e ~...._..
e~., . .~:~ . ..| .
.. _..: .. q~:.q. . ~.
~ .: ~ . ~ ..:~:..:._e.
._ .
Trafc on Kabar Aye Pagoda road in Yangon.
S
h
e
r
p
a

H
o
s
s
a
in
y
A car service centre in Yangon.
S
h
e
r
p
a

H
o
s
s
a
in
y
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
26
AUTOMOBILE
As Western Aotomukers Imbruce
Alominiom, Asiu Still Welded to Steel
Aluminium demand by Asias auto industry seen up 71 pct by 2016
A
bout four years
ugo, HyunduI Mo-
tor considered
shifting from steel to alu-
minium body parts for its
Genesis sedan to make
IL IIgILer, more IueI-em-
cient and more competi-
tive with German luxury
marques, two people fa-
miliar with the matter
said.
Ls umIIuLe KIu MoLors
made a similar move,
building test versions of
its premium K9 sedan,
called K900 in the United
States, using aluminium
in body panels including
the door, hood and trunk
lid, two other people told
Reuters.
But the South Korean
duo, which together rank
hILI In gIobuI uuLo suIes,
opted for steel instead,
deterred by the cost and,
according to two of those
individuals, hamstrung by
close ties with sister steel-
muker HyunduI SLeeI Co.
As western carmakers
such as Audi AG and Ford
Motor Co lead the way in
using aluminium, which
is lighter but more expen-
sive than steel, their Asian
rivals are reluctant to in-
vest in the costly retool-
ing required that would
disrupt existing manufac-
turing processes and sup-
plier relationships.
A reuIIy bIg cIuIIenge uL
the moment for the Asian
compunIes Is Lo hnd ouL
how they should behave
in this context of vehi-
cles coming under more
pressure Lo be IIgILer,
said Truls Thorstensen,
president and CEO of EFS
Business Consultancy.
Automakers in Asia
often prefer evolution-
ary upgrades that en-
able them to use existing
plants and make multiple
models on the same as-
sembly lines; western ri-
vals tend to make whole-
sale product changes that
require re-engineering
of factories. Thats forc-
ing Asian car companies
Lo hnd oLIer wuys Lo cuL
weight and emissions as
tighter US and European
fuel economy and emis-
sions rules drive a push
for lighter cars.
Hyunjoo Jin and
Meeyoung Cho
I you ure Iree Lo do
whatever you want, the
decision might be easier
to go in the direction of al-
umInIum or IIgIL weIgIL,
Thorstensen said.
HyunduI decIIned Lo
comment on what ma-
terials it considered in
product development. At
Kia, a spokesman said
the company did not use
aluminium body parts
in K9 test versions, and
declined to comment on
whether it considered us-
ing the material during
the cars development.
Ri si ng demand
Aluminium demand by
Asias auto industry is ex-
pected to rise 71 percent
by 2016, far below a pro-
jecLed hve-IoId jump In
North America, accord-
ing to an internal forecast
by Atlanta-based Novelis
Corp, the biggest maker
oI uL-roIIed uIumInIum
und u unIL oI ndIu`s HIn-
dalco Industries.
In 2016, Asia will ac-
count for less than a tenth
of total auto industry
aluminium consumption,
while North America and
Europe will have about
45 percent each, Novelis
predicts. Thats despite
expectations that Asia will
continue to account for
over half of global vehicle
ouLpuL, uccordIng Lo HS
Automotive.
TIIs subsLILuLIon Irom
steel is being driven
mainly by strict emissions
regulations, especially
in North America, and is
a game changer for the
aluminium rolling sec-
Lor, suId CIurIIe DurunL,
senior consultant at CRU,
u meLuIs consuILuncy. n
Asia, the emissions regu-
lations are less stringent
and vehicles tend to be
mucI smuIIer.
TIe reIuLIve cosL oI uIu-
minium sheet is seen as a
prohibitive factor, so its
in regions with the most
stringent legislation ...
that this material will be
mosL wIdeIy udopLed, Ie
added.
European luxury brands
such as Volkswagen AGs
Audi and BMW AG are
expanding their use of
aluminium in high-end,
high-margin cars. Ford
will begin building its
. , . ._ . . ~,_ .e ~
e , . ...: ~:._ , .~ ~
. . ..: . . ~:..:.- .: .
.:.~ . . ..| .|..~: ..~
.,q:~ ~. . , e .: . .:.
_e ~.:. .q, . . . _. . ..: .:
. ~. ._ . . . . .~ .:._
:., ~ . . ~:._e. ._ Marques
. . . e _. . q, _ .. . .
._ .
_. ,.-..,.~ Kia
..:~:._._. e.~.
_...._.. ~..q~,~ K
900 e . . .:.._ k 9 . .
~:..:.~ ~..,e.:.
.:.~ ..... _ . .. ._ .
~. : ..: .~: ~:..q: ..q.
...~~~ ,.|~ .,q:_
...:.,._ ~..| .~:
~ q .e:...: .~: ~:.~ . ~
. . . ._ , .~ -~:..: . .:.
~ ~..,e_e ~.:..q,
. . .,_. . ~.,:~ ~ .~:..:.
_e.._ Audi . Ford um;
.:.~. ....|.|..~: ..
..:q, ...~q._.
~:q..:.~:~:.~.~.~
.~ ~..:q . .,q~ ~_~ .
...,..'.~.~: .~q ..:
.~: ~:..~ ~ . _. ..~: ..|.|.
.~: e...q...~:
.|. ''e EFS. .. :..q.~~ . .
..,.-~_.. ~ .~ _e. .
Truls Thorstensen u
._.:. ._ .
~:q..:.~:~:...,.-
~. . , e . ~. . ~ ._
~~' ...~ ~ q:..,.
~ .~~ .:._ e ., . , .:.
._.
ugsIIp -1o pIckup
with an aluminium body
later this year, making it
LIe hrsL sucI muss-mur-
ket vehicle.
HyunduI, ToyoLu MoLor
Corp and other Asian au-
tomakers, however, most-
ly produce mass-market
curs on IIgIIy emcIenL
assembly lines that are
often decades old. They
dont sell luxury cars in
high volumes and cant
demand the sorts of prices
that Audi and BMW can.
Aluminium can cost
some four times more
than steel, although
aluminium is up to 30
percent lighter than
conventional steel and
15 percent lighter com-
pared to advanced, high-
strength steel, accord-
ing to consultancy Wood
Mackenzie. A switch to
aluminium increases not
only materials costs but
requires heavy invest-
ment to overhaul produc-
tion lines.
I you sLurL mukIng u
compIeLeIy dIerenL ur-
cIILecLure Ior exus Irom
ToyoLu or nhnILI Irom
Nissan, you will get into
a cost problem because
the numbers sold and
the premium price they
get is not similar to the
Germuns, TIorsLensen
suId. AII munuIucLur-
ers in Asia face that same
problem. They cant get
the premium price so they
have to be much more
cureIuI.
Heavy Hyundai
The previous version of
HyunduI`s GenesIs Iud
an aluminium hood, but
the company switched to
steel for the current mod-
el, launched in late 2013,
making it heavier and less
IueI emcIenL LIun ILs pre-
decessor, two of the peo-
ple said.
An aluminium car hood
weighs about half of one
made of steel, according
to Novelis. Every 10 per-
cent reduction in vehi-
cle weight improves fuel
economy by 6-8 percent,
according to the US De-
partment of Energy.
n zo1o, wIen Hyun-
dai began developing the
current-generation Gen-
esis, shaving weight and
increasing fuel economy
was a concern, said one
of those familiar with the
matter.
At a meeting at the au-
tomakers research center
on the outskirts of Seoul,
engineers proposed ex-
panding the use of light-
weight aluminium from
the hood to other outer
body panels and even
frames, said the person,
who was present. But
HyunduI wenL In LIe op-
position direction, swap-
ping aluminium with
steel even for the hood,
because of its ties with
HyunduI SLeeI und LIe
higher costs associated
with aluminium.
TIIs wus u sLep buck-
wurd Ior HyunduI, LIe
person said.
The latest Genesis
gained as much as 390
pounds (177 kg) from its
predecessor, launched
in 2008, and weighs 181
pounds more than BMWs
rival 535i.
US chief Dave Zuchows-
kI suId HyunduI Ius puL
a lot of additional weight
InLo sLrucLuruI rIgIdILy
to pass tougher US crash
LesLs. We used Lo suy
wed like to reduce the
weight in the car 10 per-
cent as we bring them
out. In this world, with ...
crash requirements and
things like that, youre
not going to be able to do
LIuL, Ie LoId reporLers In
Detroit last month.
Str onger steel
Instead of embracing
aluminium, Asian au-
tomakers are working
with steelmakers to de-
velop lighter, stronger
steel, while taking other
measures to improve
IueI emcIency IncIudIng
upgrading conventional
engines and parts with-
out having to make heavy
modIhcuLIons Lo munu-
facturing facilities.
HyunduI MoLor Is un-
der enormous pressure to
cut costs since its a vol-
ume, mass-market car-
muker, Woo Yoo-cIeoI,
president and CEO of
HyunduI SLeeI, LoId Reu-
Lers. TIe mosL ImporLunL
thing is to stay competi-
tive in the market. They
believe it is much more
competitive to use steel
Ior LIeIr ugsIIp modeIs.
For now, Japanese car-
makers limit aluminium
mostly to parts of hybrid
and premium vehicles,
sucI us ToyoLu`s exus
S. Hondu MoLor Ius de-
veloped technology to
combine aluminium and
steel for select parts in the
US versions of its Acura
RX und Accord. WIen
we consider mass produc-
tion, all-aluminium is still
dImcuIL, Hondu spokes-
womun Yuku Abe LoId
Reuters.
Nissan Motor last year
announced a plan to ex-
pand the use of high-ten-
sile steel, which is stronger
and lighter than conven-
tional steel, in up to 20
percent of parts installed in
its new production models
starting in 2017.
We conLInue Lo use
aluminium in vehicle ar-
eas such as hoods, doors
and trunk areas on cer-
tain models - such as the
GT-R and 370Z high-
performance sports cars.
Going forward, more
high-strength steel will be
used in key structural ar-
eus, suId CIrIs Keee, u
spokesman for Nissan.
Reuters
Myanmar Summary
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
27
Myanmar Summary
LK Most Open to Ioreign Investment in ICT Sector: IIL
Wai Linn Kyaw
A
new index published by
The Economist Intelli-
gence Unit (EIU) shows
that northern European coun-
tries have the most open ICT
sectors, with the UK ranking
hrsL, IoIIowed by LIe NeLIer-
lands and Germany.
The ICT Globalisation Index,
commIssIoned by HuuweI, Is u
quantitative ranking of the de-
gree of globalisation of national
ICT sectors. The ranking com-
prises more than 25 indicators
ucross Iour LIemuLIc cuLegorIes:
openness to ICT trade, open-
ness to foreign investment in
the ICT sector, R&D globalisa-
tion, and strength of the ICT
environment.
The UK tops the overall index,
particularly for its strength in
the openness to foreign invest-
ment category, EIU said.
The reason for its openness,
the report says, may be due to
its lack of domestic innova-
tion, which is indicated by its
relatively low proportion of ICT
patents.
uureI WesL, LIe edILor oI
LIe reporL, suId: TIe reseurcI
shows that while there are great
benehLs Lo IuvIng un open und
globalised ICT sector, all coun-
tries have some ways to go in
order to take full advantage.
AmId LIe currenL cyber secu-
rity concerns, it seems the chal-
lenges to greater openness will
onIy grow greuLer.
Emerging markets performed
well in openness to ICT trade
China is second in this category
overall, India eighth. But they
fare poorly in their current ICT
environment, which captures
internet, mobile and broadband
penetration as well as ICT us-
age and spending here China
is 17
th
and India is last.
The report shows striking dif-
ferences in how countries tackle
LensIons beLween LIe benehLs oI
greater ICT openness and the
potential cyber-security chal-
lenges that come with it.
For instance, despite the fact
that global businesses in many
secLors sucI us hnuncIuI ser-
vices and e-commerce rely on
the free exchange of data across
borders, many territories are
now introducing restrictions
on sucI ows, wILI some mun-
dating that data use is linked
to where it is geographically
sLored. TIIs mukes IL dImcuIL
Ior gIobuI hrms Lo operuLe.
Intel Luonches Messuging App Lsing
Curtoons to Mimic Sender's Iuce
I
ntel Corp is getting
into voice instant
messaging with a
smartphone app that uses
facial tracking technology
to caricature a senders
expressions.
Pocket Avatars was
launched on Thursday by
Mike Bell, an Intel senior
executive whose job is to
make sure the worlds
largest semiconductor
maker is at the front of
future technology trends
after arriving disastrously
late to smartphones and
tablets.
The app uses a smart-
phones camera and mi-
crophone to record a
short message while map-
ping the speakers facial
expressions onto one of
several cartoon charac-
ters. The message is then
sent to the recipient, who
can play it, complete with
the avatars head move-
ments, smiles and blinks.
In an interview, Bell de-
scribed the app, which is
free on Android smart-
Noel Randewich
phones and iPhones, as a
way to demonstrate facial
tracking technology that
could appear on future
Intel platforms such as
laptops or tablets.
RuLIer LIun IeL IL sIL
in a lab and languish, we
thought wouldnt it be
cooI Lo sIow peopIe,` BeII
said of the technology.
L`s Iun und eusy Lo ex-
plain what it does, but its
actually pretty complex
beIInd LIe scenes.
Intels core market, the
PC industry, is languish-
ing and the chipmaker
is far behind rivals such
as Samsung Electronics
and Qualcomm in mobile
chips. Reuters
Myanmar Summary
Myanmar Summary
Netix Inters Lute Night
Ruce With Chelseu Hundler
S
treaming video com-
puny NeLIx nc
signed a deal with
comedIun CIeIseu Hun-
dler to create an all-new
talk show that will debut
in early 2016, the com-
pany said.
NeLIx suId LIe sIow
will become available si-
multaneously for mem-
bers to watch whenever
they like.
This is the latest origi-
nal content deal signed
by NeLIx, wIIcI Ius Iud
success with other series
IIke House oI Curds
und Orunge Is LIe New
BIuck.
The deal also means
LIuL HundIer, wIose sIow
was previously on Com-
cast Corp unit NBCUni-
versals E! Network cable
channel, will create other
specials exclusively for
NeLIx.
wunLed Lo sIL wILI LIe
cool kids at lunch, so I ap-
proucIed NeLIx Lo muke
sure they were as cool as
I thought they were, and
Jennifer Saba wIen conhrmed my sus-
picions, like with any oth-
er future lover, I made my
move, HundIer suId In u
statement.
The terms of the part-
nership were not dis-
closed. Reuters
Economist Intelligence Unit
(EIU) .~_.,._,.~,.~..
~q .q:. .~:~..:.._
ICT ~_.:.~ ......:_..
UK . ...,q:~q.~_.,~:
,e .:., . :., . .:.._ ~
.....,:~..~.,._~:. .q
._.
Huawei ._...._ ITC
Globalisation Index ._ ~...:.
ICT ~_~~.~.:...q:q.
~_ . .:.~:. .e:_.:._.._e.._.
~. .|q. ~_ . ~ ICT .q: .~e.
~.... ICT ~_~ ._.:.
.:.q..._....~..'.... R &
D globalization . ICT ~.~
~~,.-..:..:.~..'~~._..
~:. . ..: _ . ._ e. ._ ~: .. q
._.
UK~.,_ e ~. .|~e:.~ .
. .. q. ~_ .,_ . . . q. ~_ .
_. .. : , .-. _.:.q..._....~
....q_..._~:_e.._~:. EIU
. ._.:_~:.:.._.
. . . .q_. .~:.~. .|~. q .
.:~q.:.._.:UK~.,_e _ ._
~ .., ... .~:.,_._.. ._~:_e.
._~:. .q._.
R
e
u
t
e
r
s
The InteI Corp Iogo is dispIayed at the company`s booth at an exhibition in Chiba City, ]apan.
K
iy
o
s
h
i
O
t
a
/
B
lo
o
m
b
e
r
g
Intel Cor ~ ~..~..
q,_e ..~e,.~...~.q .
_e ,_ .._:~. ._.~:.~ . :
...,.,._ ,.._.:_.,._
.....__e.._.
Pocket Avatars ..'._
e.~...~.q.~ _...._
_~:...~..,~ .~~..
_.q, ..:q~..._.
e .~. . .~.q .._ ..~
e , .~ .q:. . ~ ., e , .~
~. . _ . _ . . ~. . ,. ._.:
~._.:~~.:.~ ~.....
..__e.._.
Intel's core ~ . ~ ._
Samsung . Qualcomm
~ . ~ . :..,:~ ~ .:.. :
.,:~~~,.~q._.
Netfix Inc . Chelsea
Handler ~~_~:. .~:,..
~. ~. .. . : . ~~ ~
.~ . ~ .q. .. _ ~_ . . . .
~.~ ~~' ...~..:
. . ~ _ . . . q, . . :.
._.
Netfix ~.~~~ e.
..:.._ ._~~.:..:_e._..
._ ~:. _ ~_ , . ~. :.q.:
..._e ._.:._.
.~.~.._ ~_.:..~:
_ . ..:. .q .. :.~ . .~:
_..:_e.._~:.. e.~.
~. ._ ._ . e. .~: _.
..:. .q .~ . _.. . :.._~: .
,.~ .~._.:._.
. ~. ~. ~ NBC Universal's
E! Network cable channel
~_...:_e.._~:. Handler
~.~~~._.:._.
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
28
INTIRNATIONAL AN OMISTIC ILIGHT SCHILLI
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir
TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
*PPleaasee noote thee dday change for the deparrture time too Hong Kongg.
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 13:00 14:00 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Centrul Bunk to Grunt
Mobile Bunking Licences
Myanmar Summary
T
he Myanmar Cen-
tral Bank will grant
mobile banking li-
cences to Myanmar Ori-
ental Bank and Coopera-
tive Bank this month, in
an attempt to give rural
populations better access
to banking services.
Mobile bank services al-
low Myanmar customers
to access banking services
without having to go to
local branches.
The Innwa Bank and
Myawady Bank have al-
ready implemented mo-
bile bank services under
the provision of Myanmar
Economic Cooperation
one of two major con-
glomerates and holding
companies operated by
the Burmese military.
Senior manager of My-
anmar Oriental Bank, U
Myint Zaw, said their or-
ganisation applied for a
permit from the Central
May Soe San Bank and is waiting for
their request to be pro-
cessed.
TIrougI mobIIe bunk-
ing we can provide ser-
vices to the rural areas,
people can transfer and
withdraw money without
IuvIng Lo go Lo LIe bunk,
he said.
The Cooperative Bank is
also experimenting with
mobile banking options
to improve the quality of
its service.
Its new banking options
could include money-
transfers, balance check-
ing and an application to
IeIp cusLomers hnd LIe
locations of ATMs and
branches.
Cooperative Bank said
they have started imple-
menting technologies that
will help their mobile ser-
vices improve the experi-
ence of customer transac-
tions.
Once LIe CenLruI Bunk
grants the mobile bank-
ing licence, Cooperative
Bank will implement the
money LrunsIer servIce,
said U Pe Myint, manag-
ing director of the bank.
_., .:. .~: -e ~ ~
.~..~ .,. ~ ~, ..:
. .:.. .. . q, q_ q e _ . .
~.,...~.~ e..
~~. ....~~..
~~. CB ~~~ .~
. . ~ . ...._ _e. ._~: .
.q._.
. .~ ~, ..: . ._
~e..q,.~.._...
.:.. .~..~ .,. ~
~,..:..:. ....q, ..
..: :...:.,. ~. . _e.
_.. ,.~,..:..:.~ _.,.:
. .. :..q..~: . .q.q ..~
.~:~q ~.~~. _.~~
~~. ~,..:. ...:._..
_e.._.
._..~qe ..:~:.~:
-e ~ . : .. . ~~_ . ~
..:~ :._. ._. .~. ~. .
.. ...~:.~ . . .,~e .
. ~ ~, ..: . ~ ~. . ..~.
~.,q:~....~e. ..
~: ..~: .~~:.~q
.e .~ ~. :..q:.. .~:
~ , ~ .q ~ .~ .:.e ''e
... . ~~ . . ~~
Seniar Manager ._..~:~
._.:._.
..~|e.~~.,_e._.
-e~- .......~.
_e ..~.,..|~..:
~,..:..:._e.._ ..
e , .~ ~. ._._ ~ ~. .
.:q .~. .. .. . ._.: .
jcif;? bPftyfaiGpm&if;ppfaq;
jcif ;? bPf aiG pm&if;rS CBbPf
MPU ~~ ~~ .. . . _. .
e , .~ ~:,~ _e . . . , .
~~_.,q:.:.. ATM
.~~_.,q:_~_,_...:.~
. . ~ .,_. . Agent . . .
~,..:...~q, Agent
..:~ . :.:..~ .~ . .~
&S d aMumif; CB Bank . . q._.
. -e ~~MobileBanking
.,...~.~ ...:.
ay;r,fqdk&if CB ~~.,,
Agent , ..._.:._..~
. . ~ . :.._ e CB ~ -
...: , _~:..q.. . ..e_.
~ ._.:._.
Yoor uys Are Nombered, Top Online Intrepreneor Tells Retuilers
T
he founder of Rock-
et Internet, the
German venture
capital company behind
dozens of online start-
ups, warned the retail in-
dustry that e-commerce
and smartphones would
mean there will be little
future for stores in emerg-
ing markets.
Oliver Samwer, 40, told
the annual summit of the
Consumer Goods Forum
(CGF), an industry net-
work of some 400 retail-
ers and big brands from
70 countries, that many
of them risked being left
behind as the growth of e-
commerce accelerates.
You onIy Iuve sLores
because there was no In-
ternet, but that does not
mean there is a right to
Iuve u sLore, Sumwer
said, adding that tradi-
tional retailers focused
too much on older shop-
pers and not enough on
smartphone-savvy young-
sters.
WIuL you Ieur wIII
come mucI IusLer, Ie
warned.
Rocket Internet is bid-
ding to create the largest
internet empire outside
Emma Thomasson
the United States and
China, seeking to repli-
cate the success of Ama-
zon and Alibaba in mar-
kets the US and Chinese
e-commerce groups have
yet to dominate, such as
AIrIcu, uLIn AmerIcu und
Russia.
After his speech, Sam-
wer traded blows about
whether stores will sur-
vive, in a panel discussion
with Mark Price, manag-
ing director of British gro-
cer Waitrose, who intro-
duced himself to Samwer
suyIng: HI - `m Murk,
`m u dInosuur.
Samwer founded Rocket
Internet in 2007 with his
brothers Marc and Alex-
ander and it is already
active in 102 countries,
making revenue of $1 bil-
lion in 2013 via online
fashion stores including
DuhLI In uLIn AmerIcu
und umodu In RussIu, us
well as Jumia for general
merchandise in Africa.
Sources have told Reu-
ters the company is con-
sidering a stock market
listing in Frankfurt later
this year which could
value it at up to 5 billion
($6.8 billion), as buoy-
ant capital markets have
encouruged u urry oI e-
commerce oLuLIons LIIs
year, with most focus on
Alibaba.
Samwer said the stock
market value of Amazon
and Alibaba would soon
dwarf the worlds biggest
retailer Wal-Mart.
WIuL wouId you buy
for your children? I would
buy Amazon and Rocket
(sIures), Ie suId, udd-
ing he believed French
retailer Carrefour would
Iuve been beLLer o buy-
ing a stake in Alibaba
than trying to open stores
in China.
Only 10 per cent left

Noting that 75 percent


of the worlds popula-
tion lives in the markets
Rocket is targeting, Sam-
wer said e-commerce had
even better prospects in
emerging markets than in
developed economies, as
online sites do not have to
compete with such estab-
lished stores.
I you don`L Iuve Lo
sIure wILI omIne, your
percentage will be much
IIgIer, Ie suId. L wIII
all move online, you will
have 10 percent left that
wIII noL move onIIne.
Samwer said Rocket In-
ternet ventures around
the world already had 44
million fans on Facebook,
more than Nike and Ap-
ple combined, noting that
the cities with the most
active users of Facebook
are Bangkok, Jakarta and
Istanbul, with none of the
top 10 cities in the United
States.
Deutsche Post, the
worlds largest postal and
logistics company which
Is prohLIng Irom boom-
ing deliveries for online
retailers, predicts e-com-
merce could account for
up to 40 percent of total
trade by 2025 in devel-
oped countries, from un-
der 10 percent in most
markets now, and up to
30 percent in emerging
markets, up from a tiny
fraction today.
:.,~._..~ ,:.__~.
Rocket Internet ...:..q.
..,..~_.:. Oliver
Samwer ~ ..~ e , ., ~ .~
.q:,.~,....~.~
..:.q:.~e..._ ...:.
.q.. . , ..:.._ ...~ ~
~..~.,_ e . :.._ ~:._
~,:~~:.~ ..'..|~
.:.__e.._~:. ~....:.
.~ . .q: ... . ~ .,. .:.
~ .~ ...._.:_~:.. ~ ._ .
~....:..~ . . . ~ .
~e ,~~ . . ~. ,:._
_ ~ .. . , .q . :..|~ ._
. .. . ~ , ._ . :.e q. ~
~q , ~e , , ~ .~~ .:~
~.~.q:,.~,.....:.
.q.. : . , .:.. . ~ _ ~q,
.._.:_~:._.._e.._.
...: .~..e:._..
~~:,~.q..q .|~
~.,~~e .~.._e._..
._.:. .q.| .'' e , .~._.:_. .
..,~....:..~..q:..
.,..:.._ .....e:.
~~ .. . e .: . . ~ q,
~:,:...:._. .e.~
_~:.~ ..~e,..q.,..:..~
.~ ._._~._~: . , .~ .~
._.:._.
S
o
e

Z
e
y
a

T
u
n
/
R
e
u
t
e
r
s
An empIoyee stacks items to be shipped at the Amazon.com Inc fuIIIment center in Phoenix, Arizona,
US.
D
a
v
id

P
a
u
l
M
o
r
r
is
/
B
lo
o
m
b
e
r
g
Myanmar Summary
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
Nadda Buranasiri ,CEO of Tai Air Asia X. Wai LinnKyaw
Nadda Buranasiri, Chainarong Keratiyutwong and air hostesses at the event.
Wai Linn Kyaw
Lucky draw winners pose for a photo. Wai Linn Kyaw
Air hostesses pose for a photo. Wai Linn Kyaw Lucky draw program at the event. Wai Linn Kyaw
Ceremony of Tai Air Asia X celebrating new connectivity
68 Residence Sales gallery
Opening Ceremony
Dr Aung Kyaw Win,U Hla Myint,Mayor of YCDC,U Myint Swe,prime
minister of Yangon Division at the ribbon cutting event. Kyaw Min
U Myint Swe, prime minister of prime minister of Yangon Division.
Kyaw MIn
Grand Opening of the KHG Development Sales Gallery
U Kyi Soe, president of KHG Development gives
opening speech. Wai Linn Kyaw
U Myint Swe, chief minister of Yangon Region, at
the event. Wai Linn Kyaw
Delegates cutting ribbon at the grand opening of
the KHG development sales gallery.
Wai Linn Kyaw
Delegates at the event. Wai Linn Kyaw
U Myint Swe looks at a development model. Kyaw Min
Delegates at the event. Kyaw Min
Crest giving ceremony. Kyaw Min
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
31
June 26-July 2, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
The Mingon Pugodu und Bell: Giguntic Lnnished Stopu
And The World's
nd
Lurgest Bell
Eric Grundhauser
N
ice pile of bricks youve got here. The
Mingun Pahtodawgyi is a nice pile of
bricks indeed and holds the record for
being the biggest pile of bricks in the world.
Intended to be a 500 foot high stupa,
a mound housing Buddhist relics, the
PuILoduwgyI remuIns unhnIsIed Lo LIIs duy
but is still an awe-inspiring structure. Measur-
ing 450 by 450 feet and 172 feet high, it dwarfs
the surrounding area, and would easily have
rivalled the size of the Great Pyramid of Giza
Iud KIng Boduwpuyu hnIsIed ILs consLrucLIon.
Construction began in 1790, using mostly
slave labour, and causing a massive drain
on resources and manpower in the area. The
project was widely unpopular during its time,
which some suspect caused its cessation.
King Bodawpaya was a superstitious man
and during the construction, it was proph-
esied that the completion of the great stupa
would cause his death or the destruction of
the country. Worried about maintaining his
empire, the king slowed progress on the stupa.
When he died, construction was abandoned
completely.
Despite not completing the stupa, construc-
LIon on un uccompunyIng beII wus hnIsIed,
und wus sImIIurIy grund In sIze. TIe hnIsIed
bell weighed over 200,000 pounds and is 12
feet high. The massive bell can be rung by
striking the outside since it has no internal
ringing mechanism.
Since the early 19th century, the stupa has
become increasingly decrepit. An earthquake
in 1839 left giant cracks along the face of the
stupa, and wear and tear have led it to become
almost natural looking. Without the bright
white entrance, visitors could easily mistake
the stupa for a large earthen mound, or simply
a pile of bricks.
Myunmur's Snuke Pugodu: Where Serpents ure Considered Holy und Pumpered Accordingly
Annetta Black
O
m cIuIIy cuIIed Yudunu ubumunI Hsu-Luungpye Puyu, LIIs pugodu In PuIIek Is generuIIy known by unoLIer nume: Hmwe Puyu, or LIe Snuke Pugodu. TIIs ouL-oI-
the-way pagoda near Mandalay is distinguished by the large pythons who live happily coiled around the Buddha statue within.
The temple was founded in 1974 when a Buddhist monk was tending the old pagoda. Inside, the monk found two large pythons wrapped around a statue of Bud-
dha. The monk dutifully carried the snakes out to the jungle and returned to clean the pagoda. Within a day the snakes were back, and a third had joined. Each time, the
monks would carry the snakes out to the jungle, and each time they would return. Eventually the monks came to see the snakes as holy, possibly the reincarnated souls of
monks who used to tend to the pagoda. The monks stopped removing the snakes and instead began taking care of them.
They take such nice care of them, in fact, that it makes sense that the snakes like to hang around the pagoda. The two pythons currently in residence are fed a pot of milk
und LIree eggs every hve duys us weII us u smuII umounL oI gouL meuL. Every mornIng uL 11:ooum, LIe snukes ure IovIngIy wusIed by LIe monks In u buLI hIIed wILI ower
peLuIs. TIey ure someLImes even drIed wILI money IeIL us un oerIng uL LIe pugodu.
Each year, thousands of the faithful make a pilgrimage to the temple, and the walls of the pagoda are lined with photos of families visiting the semi-holy serpents. Some
depict toddlers happily bathing alongside the snakes. They snakes have never been known to injure anyone and seem quite happy to be touched by the visitors.
Though the original pythons have died, new snakes have since been donated by faithful followers. The original snakes can still be seen in the pagoda, albeit in a taxider-
mied state. Considering the level of care the snakes receive, the snakes no doubt lived a long and happy life.
The area surrounding the snake pagoda is also worth exploring and is full of overgrown and beautiful ruins rarely visited by tourists.
T
r
a
v
e
la
d
v
e
n
t
u
r
e
.
c
o
m
T
r
a
v
e
lp
o
d
.
c
o
m
The unnished entrance to the stupa.
F
lic
k
r
/
p
y
ja
m
a
The Mingun Bell.
F
lic
k
r
/
a
n
t
w
e
r
p
e
n
R
The stupa entrance.
The Settawya Pagoda with the stupa in the background.
The massive stupa, cracked from earthquakes.
F
lic
k
r
/
p
y
ja
m
a
F
lic
k
r
/
p
y
ja
m
a
F
lic
k
r
/
p
y
ja
m
a

Вам также может понравиться