February 6-12, 2014

Myanmar Business Today

mmbiztoday.com
mmbiztoday.com February 6-12, 2014 | Vol 2, Issue 6 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Contd. P 7...(\orld Bank)
World Bunk Pledges $ billion
for Myanmar,
Wurns Aguinst Corroption
T
he World Bank has an-
nounced a $2 billion de-
velopment programme in
Myanmar, which will focus on
improving energy and health-
care in one of Asias poorest
countries.
The announcement was made
during a visit by bank presi-
denL JIm Yong KIm, IIs hrsL Lo
Myanmar, and will help boost
a country where less than 30
percent of the population has
reliable access to electricity and
large parts of the rural commu-
nity have little or no access to
healthcare.
We are increasing our sup-
porL Ior LIe Iuge reIorm eorL
under way in Myanmar because
we want to help the government
brIng benehLs Lo poor peopIe
even more quickly, Kim said
durIng IIs vIsIL. ExpundIng uc-
cess to electricity in a country
like Myanmar can help trans-
form a society. Children will
be able to study at night, shops
will stay open and health clin-
Htet Aung
Contd. P 7...(\orld Bank)
AIter Long Wuit, Government Grunts
Internutionul Telecoms Licenses
Telenor and Ooredoo given 15-year licenses, services expected within 6 months
A man uses his mobile phone on a bridge in downtown Yangon. Last week, the government granted licenses to two interna-
tional companies who are expected to begin operations within six months.
S
o
e

Z
e
y
a

T
u
n
/
R
e
u
t
e
r
s
W
hen UK-based busi-
nessman Ryan Taylor
arrived in Myanmar
in early 2012 looking for po-
tential business opportunities
in the recently opened country,
it took him three days to track
down a SIM card.
Even uILer evenLuuIIy Iound
one, I couldnt believe that it
Oliver Slow cost me more than $100, he
said. Id been in Thailand a few
days prior to that and had got
one for free.
After a short visit, Ryan re-
turned to Myanmar a few
months later and found that
the SIM card he had bought no
longer worked. Apparently,
because I hadnt used the SIM
Contd. P 9...(Telecoms Licenses) Contd. P 9...(Telecoms Licenses)
Myanmar Summary
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
2
LOCAL BIZ
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Board of Editors
Editor-in-Chief - Sherpa Hossainy
Reporters & Writers
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Bangladesh Ai mi ng to Cour t Nei ghbour i ng
Myanmar
BungIudesI GovernmenL omcIuIs Iuve pIuced Impor-
tance on their countrys relationship with Myanmar
as its eastern neighbour emerges from decades of eco-
nomic stagnation.
Speaking at the seventh meeting of the Bangladesh-
Myanmar J oint Trade Commission (J TC), which was
IosLed In Nuy PyI Tuw on Junuury 1q und 1, SM NuruI
Hoque, vice president of Bangladesh-Myanmar Cham-
ber of Commerce and I ndustry said that Bangladesh
needs to take its neighbour seriously in strengthening
economic ties in order to boost trade.
Businesspeople should be involved very seriously in
designing any future plan, he told Bangladeshi press.
Shwe Mann would cooper ate wi th Suu Kyi
Parliamentary Speaker Thura Shwe Mann said last
week that he would cooperate with opposition leader
Aung San Suu Kyi if she becomes the countrys Presi-
dent following the 2015 elections.
However, Shwe Mann, who is also chairman of the rul-
ing Union Solidarity and Development Party (USDP),
made it clear that amending the constitution to ensure
that Suu Kyi can legally become President, should she
win the election, is not at the top of his partys priori-
ties.
I f she was elected president, I would work together
with her for the sake of the countrys development, he
said. I have no objection to her becoming president.
Ai r cr aft Fuel Consumpti on I ncr eases for Fi fth
Consecuti ve Year i n 12-13 Fi scal
Myanmar sold 28.58 million gallons of aircraft fuel
durIng LIe zo1z-zo1 hscuI yeur, hgures reIeused by LIe
MInIsLry oI Energy Iuve reveuIed.
Across the country, there are 11airports distributing
LIe IueI, IncIudIng LIe mujor cILIes Yungon und Mundu-
lay as well as smaller destinations such as Dawei, Myeik
and Mawlamyine.
TIe IuLesL hgures Iuve seen un Increuse Irom z6.z
mIIIIon guIIons In zo11-zo1z hscuI, und zo.68 mIIIIon u
year previously.
Yangon Stock Exchange needs K32 bi lli on i n
star t-up capi tal
ocuI medIu Ius reporLed LIuL LIe Yungon SLock Ex-
change, which is being tipped to be implemented in
2015, will need K32 billion ($32.5 million) in starting
capital.
EIeven MedIu IusL week quoLed depuLy hnunce mInIs-
Bosiness News in BrieI
ter Maung Maung Thein as saying, The exchange will
be established with a starting capital of K32 billion with
Myunmur IoIdIng u 1 percenL sLuke und Jupun u qq
percent stake, before adding that the government is
uwuILIng upprovuI Irom LIe omces oI LIe PresIdenL und
Chief Lawyer for the go ahead, and that J apans Daiwa
und Tokyo SLock ExcIunge wouId oer experLIse In LIe
venture.
There are standards for companies to be listed on
the exchange. Not every company will be listed, only
companies that meet the standards required, Maung
Maung Thein said, according to the report.
Myanmar Summary
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
3
LOCAL BIZ
Myanmar Summary
The majority of Chinese investments in Myanmar are in the latter's growing oil and gas industry.
Chinu Remuins Highest Ioreign Investor
us Indiu Border Trude Increuses
F
ile
s
C
hinas foreign in-
vestment in Myan-
mar has reached
Phyu Thit Lwin and
Htet Aung
$1q.1z bIIIIon, uccordIng
Lo hgures Irom LIe Myun-
mar I nvestment Commis-
sion, as it continues to be
the largest investor in the
formerly isolated nation.
China not only stands
at the top of investment
hgure LubIes, buL we Iuve
also seen an increase in
border trade and regu-
lar trade annually, said
J oint Secretary of My-
anmars Federation of
Chambers of Commerce
and I ndustry (UMFCCI ),
U Aye Lwin.
The majority of Chinese
investments have been
in the areas of electricity,
mining, hydropower and
oil and gas. Oil and gas is
the area with the highest
Chinese investment, fol-
lowed by electricity.
AccordIng Lo LIe hg-
ures, in 11 sectors, Chi-
nese companies are op-
erating 381 enterprises,
mukIng up q1.z8 percenL
of income from foreign-
backed projects.
Second In LIe hgures
Is Hong Kong, wILI q8
operations totaling $6.3
billion, or 18.65 percent
of the total, followed by
South Korea, with 71op-
eruLIons und u LoLuI hgure
of $2.9 billion, or 8.69
percent.
MeunwIIIe, border om -
cials revealed last month
that they are targeting
Myanmar-I ndia border
trade to reach $3 billion
by 2015.
Myanmars relatively
new quasi-civilian gov-
ernment has eased tax at
border stations, say bor-
der entrepreneurs, which
Ius IeIped Lrude Lo our-
ish between the neigh-
bouring countries.
Due to the current
situation, border trade
has increased. Also, road
conditions have improved
which has helped the sit-
uation, said one border
trader, revealing that the
majority of goods traded
were beans and forestry
products.
Gov't Pluns to Grow
GP, Hult Inution
Htet Aung
M
yanmar hopes to boost Gross Domestic
ProducL (GDP) In LIe zo1q-zo1 hs-
cal year to K66.2 trillion ($67 billion),
according to Dr Kan Zaw, minister for national
planning and economic development.
Speaking at the First Pyidaungsu Hluttaw
Ninth Regular Meeting, Dr Kan Zaw said that
LIe hgure Ior zo1-zo1q hscuI yeur wus Kq.z
trillion.
or LIe zo1q-zo1 hscuI yeur, we Iuve seL u
number of national targets. Among them, we are
uImIng Lo boosL GDP und reduce InuLIon more
than last year, he said, revealing that the target
Ior zo1q-zo1 wus decreusIng InuLIon Irom .
percent to 6.5 percent.
Myanmar Summary
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
Myanmar Summary
A
u
r
e
lia

R
u
s
e
k
Myunmur Attructs $1.q bil in II Ior
Hotels und Toorism: Om ciul
Aye Myat
M
yanmar has attracted
$1.92 billion dollars in
foreign investment to
boost its hotel and tourism sec-
Lor durIng LIe currenL zo1-1q
hscuI yeur, om cIuI hgures Iuve
revealed.
AccordIng Lo LIe hgures, re-
leased by the Ministry of Hotels,
the bulk of investment comes
from Singaporean companies,
which make up $880 million,
followed by Thailand ($235
million), J apan ($183 million)
and China ($150 million).
The investment is spread over
39 projects in the sector, some
of which have been completed,
while others are still under con-
struction.
TIere ure u LoLuI oI q,8q
hotel rooms in 923 hotels, mo-
tels and guest houses across the
country, according to the Direc-
torate of Hotels and Tourism.
The Ministry of Hotels and
Tourism has granted opera-
tion licenses to a total of 1,350
tourism companies including
one foreign company, 25 joint
venLures und 1,zq IocuI com-
panies.
I t has also issued 196 tourism-
related transport licenses and 3,
667 tour guide licenses.
According to the Myanmar
I nvestment Commission, it has
allowed more investment in the
hotel building and manufactur-
ing sectors this month, creating
new job opportunities.
To meet the growing demand
for hotels, the ministry has ap-
proved the establishment of 11
more hotel zones in three re-
gions of the country, namely
Yungon, MunduIuy und TunIn-
tharyi.
Yungon und MunduIuy Iuve
long been popular tourist des-
tinations, but Tanintharyi is
growing in popularity due to
its pristine beaches and close
proximity to Thailand, which
is becoming more accessible as
Myanmars government opens
border stations as tourism in-
terest in the country increases.
Meanwhile, the number of
tourist arrivals is expected to
rise this year as many foreign
visitors are destined to visit My-
unmur Lo uLLend ASEAN sum-
mits to be hosted by Myanmar
durIng ILs ASEAN CIuIrmun-
sIIp In zo1q.
Last year, Myanmar attracted
over 2 million tourists, of whom
1. 1q mIIIIon enLered LIrougI
border guLes und 88,q;6
through airports.
Visa-on-arrival for visitors
Irom q8 counLrIes und regIons
were uIso oered Lo IucIIILuLe
their travel to the country.
A sherman on InIe Iake, one of the country's most popuIar tourist destinations.
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
President Thein Sein has called on development partners in the country to cooperate with the govern-
ment.
R
e
u
t
e
r
s
Thein Sein Culls Ior Cooperution on
Coontry's evelopment
P
resident Thein Sein
has urged devel-
opment partners
working in the country
to cooperate with the
government as Myanmar
continues its transition
towards genuine democ-
racy.
Speaking at the Myan-
mar Development Coop-
eration Forum, which was
hosted in Nay Pyi Taw un-
der the theme of Acceler-
ating Actions for Progress
LIrougI EnIuncIng ncIu-
sive Coordination, Thein
Sein spoke of the need for
systematic management
in order to continue the
economys growth.
The government, he
said, is predicting a 9.1
percent GDP growth for
LIe zo1q-zo1 hscuI yeur,
which will be aided by
u hve-yeur nuLIonuI de-
velopment plan that will
streamline Myanmars
aid, support and assis-
tance needs in line with
development priorities,
making the countrys de-
veIopmenL more eecLIve.
Almost three years into
his presidency, which
may be extended beyond
national elections cited
for 2015, Thein Sein said
that the government is
implementing four phas-
es of its reform process,
notably political reform,
economic reform, public
administration reform
and private sector devel-
opment reform.
TIe hrsL pIuse, Ie
said, has created favour-
able conditions for na-
tional reconciliation with
mutual understanding
built with ethnic minor-
ity groups, although his
comments come at a time
when his government is
coming under heavy criti-
cism from the interna-
tional community for an-
other alleged massacre of
Rohingya Muslims in Ra-
khine State - something
the government is deny-
ing took place - as ten-
sions continue between
Rohingya and Rakhine
Buddhists.
With regards to eco-
nomic reform, Thein Sein
said that the country saw
a 7.3 percent GDP growth
in 2012-2013, up from
a predicted 6.7 percent
growth and the country
continues to attract for-
eign investment despite
some concerns regarding
creaking infrastructure
and high land prices.
He added that the re-
form of public admin-
istration would involve
reducing central control
and improving the capac-
ity of local governments,
while the fourth referred
to improving conditions
for trade, as well as logis-
tical and institutional in-
frastructure.
I n the remaining
months of his term, Thein
Sein said that his govern-
ment will focus on seven
Aye Myat
key priority areas, those
being electricity, water
supply, agricultural de-
velopment, employment,
LourIsm, hnuncIuI deveI-
opment and trade and in-
vestment.
The two-day forum,
organised by the Minis-
try of National Planning
und EconomIc DeveIop-
ment, was also attended
by World Bank President
JIm Yong KIm, UN Eco-
nomic and Social Com-
mission for Asia and
PucIhc (ESCAP) Under
Secretary Noeleen Heyzer
as well as other ministers
and businesspeople.
This years event is the
second of its kind, fol-
IowIng LIe hrsL DeveIop-
ment Cooperation Forum
which was hosted in Nay
Pyi Taw in J anuary 2013.
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
Myanmar Summary
Myanmar's employment market is expected to see a growth in the coming years, particularly as international companies, such
as telecoms giant Ooredoo, move into the country.
O
o
r
e
d
o
o
Imployment Murket Sorge Ixpected
Phyu Thit Lwin and
Htet Aung
Y
ouths in Myanmar look
set to take advantage of
the increasing number of
businesses arriving in the coun-
try, as job opportunities will be
created, according to sources
within the employment indus-
try.
U Than Soe, editor-in-charge
of J ob Opportunity J ournal told
Myanmar Business Today that
a mushroom in sales and ser-
vIce cenLres wouId benehL LIe
local employment market.
Others in the employment in-
dustry urged young people look-
ing for work to maintain profes-
sionalism if they want to gain
good jobs with international as
well as local companies.
SuIe sLu vucuncIes ure In
high demand. For example.
CityMart is always looking for
suIes sLu und mosL uppIIcunLs
need quuIIhcuLIons Irom mIddIe
or high school to apply. It is im-
portant that applicants present
themselves well, dress nicely
and speak in a good way, as the
jobs are in the customer service
industry, said a responsible
person from ThuKaSuSan em-
ployment agency.
Meanwhile, the much-publi-
cised reforms in the telecom-
munications sector, particularly
at a time that the two interna-
tional companies, Telenor and
Ooredoo, roll out their services,
is likely to lead to further job
prospects.
Ooredoo Myanmar requires
u greuL deuI oI sLu us LIe com-
pany will open sales centres
throughout the country, said
Thiri Kyar Nyo, Ooredoos Pub-
lic Relations Manager. During
the most recent Ooredoo My-
anmar job fayre, we had a great
deuI oI InLeresL Irom suIes sLu,
she said.
The government has also an-
nounced that it plans to host job
fayres in order to help create
job prospects as the countrys
economy opens up.
AccordIng Lo U TIuung Yu
Zin, who operates an overseas
employment agency, respective
ministries will help to organise
job fayre where employers and
employees can communicate
directly.
Myanmar will host job fay-
res in the future. These fayres
should be in the remote areas
where there are few job oppor-
tunities available, U Thaung
Yu ZIn suId.
Iisheries Intrepreneors 'Luck Tech,
Knowledge' Ior Internutionul Qoulity Ixport
Phyu Thit Lwin
D
ue to weak technology
and knowledge in the
breeding of livestock,
most of the marine products
exported by Myanmar abroad
are done so as raw materials,
according to sources in the in-
dustry.
Sources believe that entrepre-
neurs are losing a huge amount
of potential income as their
products lack value and if My-
anmar can implement systems
to improve the quality of their
exported products, then the
counLry wIII benehL.
Through using technology
other countries produce 500
tonnes for every one hectare of
land, but in Myanmar that num-
ber is more like 10 tonnes, said
Daw Toe Nandar Tin, chairman
of the Myanmar Marine Prod-
ucts Dealers Association. We
dont have the necessary tech-
nology here. Many farmers here
tend to use much more tradi-
tional techniques to breed their
livestock and we need to change
that culture if we want our ex-
ports to grow, she added.
There are currently 130 freez-
er factories exporting marine
products abroad, but the major-
ity of those only export the raw
materials as they do not have
the necessary or technology to
produce the value-added prod-
ucts,
Daw Toe Nandar Tin added
that another problem is that
muny oI LIe hsI dIe Irom dIs-
eases due to the conditions in
many of the breeding grounds
and urged the government to
help the entrepreneurs and
contribute to advanced technol-
ogy within the industry.
Many businesses operate
their own aqua-culture ponds
and cool storage facilities but
many have said that costs are
high, electricity power supply is
inadequate and technology and
knowledge are not good enough
to produce international quality
products.
Myanmar Summary
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
7
LOCAL BIZ
Myanmar Summary
From page ...(\orld Bank)
ics will have lights and energy
to power life-saving technology.
EIecLrIcILy IeIps brIng un end Lo
poverty.
About a tenth of the fund,
roughly $200 million, will con-
tribute to programmes that will
supply universal healthcare to
the country by 2030. The fund-
ing, the bank says, will increase
access to essential health servic-
es for women and children and
provide much-needed health-
care to those who cannot af-
ford it. Another $80 million in
grants is already helping rural
communities in schools, roads,
water and other infrastructure
projects, while other aspects of
the projects include improved
access to telecommunications
In ruruI ureus, ImprovIng hnun-
cial management systems and
providing grants to schools and
poor students.
World Banks support to
developing electrical power is
very good. Many places in the
counLry suer Irom poor power
supply, so this is needed, said
economist U Thar Lwin.
However, during his address
Kim warned Myanmar against
corruption as increased inter-
national aid comes into the
country amid the unprecedent-
ed reforms currently taking
place.
Recalling an incident in Bang-
ladesh when he was forced to
shut down a programme due to
corruption, Kim warned Myan-
mur noL Lo suer Irom LIe sume
fate.
I would not hesitate to do
LIuL uguIn II we were Lo hnd
evidence of corruption in any
of the projects, he said, adding
that the Bank will monitor the
programmes closely to ensure
that the funds go into the neces-
sary areas.
World Bank ceased opera-
tions in Myanmar, then Burma,
in 1987 after the then-ruling
military junta stopped pay-
ments on debts worth hundreds
of millions of dollars. Through
aid from Japan, last year Myan-
mar was able to clear debts to
World Bank and Asian Devel-
opment Bank, seeing a return
of the banks at a time of much-
needed development.
During his visit, Kim also met
with President Thein Sein as
well as other government mem-
bers, opposition leaders and
businesspeople in the capital
Nay Pyi Taw.
From page ...(\orld Bank)
CurrentIy onIy MAI and AII Nippon Airways are aIIowed to operate between ]apan and Myanmar but the new agreement couId
open the market to other operators.
W
M
Myunmur, Jupun Revise
Aviution Accord
Shein Thu Aung
T
he Myanmar and Japan
governments have agreed
to revise a bilateral avia-
tion accord allowing more Jap-
anese and Myanmar airlines
Lo operuLe IgILs beLween LIe
countries, it was announced last
week.
The original accord, signed
in 1972, stipulated that only
one airline from each nation
couId operuLe IgILs. TIe new
agreement was signed follow-
ing a meeting between Japans
Ambassador to Myanmar Mikio
Numata and director general of
the Department of Civil Avia-
tion under Myanmars Trans-
port Ministry Tin Naing Tun.
Currently All Nippon Air-
wuys Ies duIIy beLween NurILu
und Yungon, wIIIe Myunmur
AIrwuys nLernuLIonuI Ies be-
Lween Yungon und some Jupu-
nese cities. The new agreement
means that other airlines will
be ubIe Lo y beLween LIe coun-
tries with Japan Airlines one of
the airlines expected to capital-
ise on the new agreement.
The revision is expected to
respond to growing needs for
LIe IuuncI oI reguIur IgILs,
and further promote bilateral
exchanges, a release announc-
ing the deal said.
Japan is a close ally of the cur-
rent Myanmar government and
is involved in a range of pro-
jects within the country, most
notably in infrastructure as the
formerly-isolated nation con-
tinues unprecedented reforms
aimed at lifting the economy
and bringing genuine democ-
racy to the country.
Japan has cleared much of
Myanmars debt to them and is
heavily involved in the Thilawa
SpecIuI EconomIc Zone, u bII-
lion dollar industrial project
IocuLed cIose Lo Yungon, us weII
as plans to upgrade Myanmars
transport network.
IP Luw Ixpected
in Jone
Phyu Thit Lwin
M
yanmars intellectual
property law is ex-
pecLed Lo be hnuIIsed
by June, sources within the in-
dustry revealed recently.
Work began on implementing
IP law in 2003 and in 2010 the
Ministry of Science and Tech-
nology pushed further forward
the plans to have it up and run-
ning.
TIe CIIeI ALLorney`s Omce
continues to process the copy-
right law. In 2010, the Min-
istry took accountability and
urged parties to progress with
the law. We are waiting for ap-
proval from the Presidents Of-
hce us weII us HIuLLuw und ure
expecting it in June, said U
Min Tayza Nyunt Tin, manag-
ing partner for MN Associates
Intellectual Property Law Firm.
Copyright extends to four
parts-creation copyright, trade-
mark, literary and artist work
copyright and industrial patent
copyright. As Myanmar attracts
an increasing number of foreign
visitors and businesses, IP Law
is seen as a crucial law.
AILer LIe copyrIgIL Iuw Is h-
nuIIsed, IL wIII benehL IndusLrIuI
products and pharmacy prod-
ucts very much. When Myan-
mur becomes purL oI LIe ASEAN
Free Trade agreement, foreign
InvesLmenL wIII ood InLo LIe
country and if copyright law
is not enacted properly, then
the state economy could lose
around 20 percent, Nyunt Tin
added.
Myanmar Summary
R
e
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
Myanmar Summary
An estimated 70 percent of Myanmar's work in the agricultural industry.
British Ambussudor Ior
Agricoltore Culls Ior Clurity on
Lund Rights
Su Su
B
ritains Business Ambas-
sador for Agriculture,
James Townshend, has
urged LIe governmenL Lo hnd
clarity on the issue of land titles
if the country is to attract fur-
ther investment in the agricul-
tural sector.
SpeukIng durIng u hve-duy
visit to the country last month,
which also saw him attend the
IvesLock Myunmur zo1q Expo,
Townshend said that visibility
is needed when it comes to the
ownership of land and to avoid
problems such as land grab-
bing, something that has been
an issue for land owners in My-
anmar since the countrys mili-
tary-ruled days.
It would be an impediment to
the development of the [agricul-
ture] industry, not least because
the people who lease the land
wouldnt have any security. If
investors dont have security,
they cant suitably make that
investment needed to deliver
a competitive agricultural sec-
tor, he said, echoing a number
of points made by potential in-
vestors who have called on the
government to ensure a more
stable business environment if
they want to continue attracting
investors from abroad.
Townshend also spoke of the
importance the agricultural
sector has in terms of lifting the
economy as well as providing
jobs for the countrys citizens,
in a country where it is estimat-
ed that 70 percent of the work-
ing population are employed in
agricultural areas.
Also during his trip, Town-
shend made a visit to the town
of Pathein in Ayeyrwaddy re-
gion to inspect the site of a
joint-venture between local
group Yomu SLruLegIc HoIdIngs
und BrILIsI hrm ED & Mun,
which will produce export-qual-
ILy coee.
Sand and Stone
Indostries Thrive us
Brick Begins to Sink
Htet Aung
T
he sand and stone mar-
kets have performed well
In eurIy zo1q us govern-
ment and private construc-
tions as well as apartments and
housing complexes continue to
thrive in Myanmar, sources in
the industry say.
According to construction ac-
cessory businessmen U Kyaw
Kyaw and Ko Than Htay, while
sand and stone have seen a rise
in popularity for the construc-
tion of buildings and proper-
ties, demand for brick has seen
a slight fall.
The prices for bricks at
construction accessory shops
uround Yungon Ius dropped
because there is so much of it
available. However, sand and
stone orders are high, particu-
IurIy ouLsIde oI Yungon, suId
Ko Than Htat, who added that
a high amount of demand for
sand and stone comes from
Thanintharyi Region in My-
anmars south and close to the
border with Thailand.
He added that, due to the
brick market being seasonal,
many brick traders manufac-
ture the product in bulk, which
leads to a fall in the price of the
product.
The price for units of pricks
has fallen from K125 each to
K115 given the current climate.
Myanmar Summary
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ile
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
9
IMI Completes Poblic
OHering oI go,ooo New
Shures to Iinunce Growth
I
nvesLmenL IoIdIng hrm IrsL Myunmur nvesLmenL
(FMI) last week announced that it has successfully com-
pIeLed LIe pubIIc oerIng oI un uddILIonuI zo,ooo new
shares at a price of K10,000. The shares were issues on Jan-
uury zz und ure uvuIIubIe Lo 1,1o new sIureIoIders on u hrsL
come hrsL served busIs, LIe compuny suId.
TIe uddILIonuI sIures were oered due Lo overwIeImIng
demand after the successful completion of issuing 2.5 mil-
lion shares to existing shareholders and the company an-
nounced that it expects total gross proceeds from the sale
to reach K27.5 billion ($27.9 million), of which the proceeds
wIII be used Lo hnunce producLs sucI us LIe TIIIuwu SpecIuI
EconomIc Zone, oI wIIcI M IoIds hve Lo nIne percenL oI
the Myanmar arm of the project.
Other projects from the country including development of
its FMI Air operations following the granting of a temporary
uIr operuLor`s cerLIhcuLe us weII us Increused InvesLmenL In
Meeyahta International Hotel Ltd, a 10-acre property devel-
opmenL In downLown Yungon, wIIcI Ius been cILed Lo en-
LIreIy uILer Yungon`s skyIIne.
Daisuke Lon
Myanmar Summary
for so long, it had just expired.
With all the challenges already
presented from operating with-
in Myanmar, the last thing you
need is trouble using a phone.
Thankfully, woes like Ryans
will soon be a thing of the past
as last week the government
hnuIIy grunLed IIcenses Lo LIe
two international companies
looking to roll out their services
across the country.
Qatars Ooredoo and Telenor
of Norway were announced
as the bid winners on June 27
2012, but had to wait seven
months, while the Ministry of
Communications and Informa-
LIon TecInoIogy cIurIhed LIe
Telecommunications Law, to be
granted the 15-year licenses.
According to a press release
from the ministry, the licenses
will authorise each operator
to build, own and operate a
telecommunications network
and to provide the full range
oI pubIIc hxed und mobIIe LeI-
ecommunications services on a
nationwide basis.
During the countrys military-
run era, the telecommunica-
tions industry was tightly con-
trolled and SIM cards would
often cost upwards of $1,000.
TIe prIce Ius dropped sIgnIh-
cantly since then, but even to-
day on the black market they
are rarely available for less than
$100.
It is thought that when Oore-
doo and Telenor role out their
services within the next few
months, SIM cards will be
available for K1,500 ($1.70). In
a country where an estimated
10 percent of the 60 million
population has access to a mo-
bile phone, clearly there is huge
potential for growth for the two
companies, who will also com-
pete alongside local operators
Myanmar Posts and Telecom-
munIcuLIons (MPT) und YuLun-
arpon, both who are planning to
team up with other internation-
al companies in order to make
themselves more competitive in
the market.
Telenor, which is part owned
by the Norwegian government,
plans to launch its services
within eight months and is
looking to achieve 90 percent
neLwork coveruge wILIIn hve
years. The group also said in a
release last week that it plans
to breakeven on its investment
within three years.
A major milestone has been
passed with the acceptance of
the nationwide telecommuni-
cations license agreement with
the Myanmar government. Tel-
ecommunications is a strategic
sector in enabling the advance-
ment of key industries, and
this license agreement marks
the beginning of an exciting
journey in Myanmars develop-
ment, said Jon Fredrik Bak-
suus, presIdenL und CEO oI TeI-
enor Group.
Ooredoo have revealed that
they plan to roll out their ser-
vices within six months.
We are delighted to be here
today to accept our license,
suId Ooredoo Group CIIeI Ex-
ecuLIve Dr Nusser MuruhI, wIo
attended the ceremony to sign
the license in Nay Pyi Taw. The
government of Myanmar can be
proud of a well-run license pro-
cess. We look forward to contin-
uing to work alongside the Un-
ion Government as Myanmar
develops socially, economically
and technologically.
The licenses were granted pri-
or to approval of the telecom-
munications rules and regula-
tions, which will be released in
February, U Than Thun Aung,
director at Telecommunications
Department of the ministry told
local research group Thura
Swiss. The drafted rules and
regulations include licensing,
spectrum, access and competi-
LIon ruIes und, once hnuIIsed,
the ministry said it will invite
From page ... (Telecoms Licenses)
tenders for services including
InLerneL, cuII cenLres und WIh
to private companies.
From page ... (Telecoms Licenses)
Myunmur Hopes Ior ASIAN Visu
Ixemption by o1g
Myanmar is planning to reach
ugreemenLs wILI uII nIne ASE-
AN countries on visa exemp-
tions by 2015, sources from the
Ministry of Immigration and
Population revealed last week.
Currently, Myanmar has visa
exemption agreements with
Laos, Vietnam, the Philippines
and Cambodia, while an agree-
ment with Thailand was agreed
in late 2012 but has been put
on hold due to the current un-
rest taking place in Myanmars
Su Su eastern neighbour. The current
ugreemenLs wILI ASEAN coun-
LrIes uIIow 1q-duy vIsILs. We
aim for visa exemption agree-
ments not just for tourists but
also to help grow the export
and import sectors between the
countries in order for trade to
ourIsI, suId U Muung Muung
Than, director of the ministry.
WIen Myunmur Is ASEAN
CIuIr |wIIcI om cIuIIy begun
on Junuury 1, zo1q|, u number
of people from within the re-
gion will come for the meetings.
An agreement would also help
boost tourism development,
he added.
Myanmar Summary
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Myunmur: eveloping u Knowledge
Society Irom Scrutch
Waltraut Ritter
T
he Worldbank Knowledge
Economy ndex runks
Myanmar as second low-
est among 157 countries across
all key variables relating to ICT,
innovation, education as well as
economic incentive and insti-
tutional regime; Transparency
Internationals 2013 Corrup-
tion Perception Index lists My-
anmar in the bottom group of
countries, and the most recent
Internet World Statistics report
(2012) shows that internet pen-
etration is around one percent,
although with the entry of two
international telecom opera-
tors, Telenor and Ooredoo, roll-
ing out voice and data services
nationwide starting this month,
LIese hgures ure expecLed Lo
move up fast. The growth of in-
ternet access in Myanmar will
predominantly be mobile inter-
net access. Seven percent of the
population use mobile phones;
the lowest cost for an Android
smartphone (with Myanmar
font) is $60-70 and a SIM card
with data services cost between
$5 and $130, depending on the
channel through which one
gets access to a SIM. Huaweis
smartphones are the market
leader at the moment, followed
by Samsung.
With the opening of the coun-
try in the past two to three
years, what are the prospects
for building the foundations for
a knowledge society, a society
where knowledge and exper-
tise become the most critical
resource and asset for national
development?
Recent reports and studies
about Myanmar (ADB 2012,
Cheesman 2012, McKinsey
2013) describe the backward-
ness of everything related to
information, from information
laws, information access, ICT
infrastructure to internet gov-
ernance.
Building the soft infrastruc-
ture, capacity, skills and mind-
set is another challenge. Nwe
Nwe Aye says that the govern-
ment in Myanmar is still heavily
circumscribed by secrecy and
lack of transparency, and that
there is no sense of political
rule as a participative process
(Nick Cheesman et. al. (ed.)
Myanmars Transition: Open-
ings, Obstacles and Opportu-
nILIes. SEAS SIngupore zo1z).
The culture of an authoritarian
socIeLy Is Iurd Lo LIrow o, und
technology may act as a cata-
lyst, but there are quite a few
R
e
u
t
e
r
s
countries with excellent ICT
infrastructure and non-existing
or low civic rights and public
transparency as well.
Reporters without Borders
and the Burma Media Associa-
tion claim that the structure
of the new Burmese Internet as
modIhed In zo1o gIves LIe uu-
thorities more surveillance op-
tions, while reserving the fast-
est and best-quality access for
the government and military.
They say that Myanmars use
of Blue Coat technologies (the
Silicon Valley tech company
providing internet censorships
equipment and services such as
Deep Packet inspection) in gov-
ernment agencies raises ques-
LIons ubouL InLerneL hILerIng
policy and surveillance.
The Asian Development Bank
(ADB), which resumed opera-
tions in Myanmar in 2013, is
advising the government on ICT
strategy and public administra-
tion reform. Following their
tender for the development of
an e-Governance Master Plan, it
was just announced a few days
ago that IT services provider In-
fosys will be appointed as advi-
sor for the $1.5 million project,
which also includes six months
training for 100 engineering
students. Building ICT capacity
is the basis for information and
data management across the
public sector, and also the ba-
sis for any Open Data initiative.
All major global tech companies
Contd. P z...(Knowledge) Contd. P z...(Knowledge)
Myanmar Summary
~. : ~ - KnowledgeEconomy
Index ~ _., .:. ._ . ..| .
~ . ~ . ~ e~:.~,_ .. ..
~. . _e. ._~: . . q_. . ~. .| , .~ , .
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., ... ~ . .:. ._:.q.. . .. :.
.q.~ ~:..... .:. ~e ~._ .. q:
.~|..:.~._. .|~._~:. .q
._.
Transparency International -
~~, . . . ~~ .~ _..:.. . q: , .
~ , .~ _., .:. ._ ~e:..~:~
._.~ q .,_. . Internet World Statistics
- ~~ . . . .. ~. .~ ._. _., .:
. -~ ~:,~ ~. ._.. . : ~ q:.
. , ., ..|..:q ._ ._., .:. ~ .~
. e .q.~_~:. e _e .~ .~~ .:..
q, ~~ ~ ~_._ _._ . q: .~: ..q
~:.:.~:. ~ .|..'e . _. . Telenor
. Ooredoo ~ ~:. .~ . e .q.
...:.~:. ....._.. e..
~~ . ~. . . .~~ .~~:
voice . data ~,..:..:.~
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._.
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~~ . .~~ . :._ . ~..q ~,
..'.: ..'.:. ~,~ ..'.:~ q
.,._ . e. ~. , ~ Huawei -
..~ e , ..:.. : _., .:. - ...~ ~
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
FEATURE
11
Myanmar Summary
Contd. P z...(Prospects)
Prospects Ior Women in Chunging Myunmur
Tan Ren Rong
M
yanmar has under-
gone huge changes
in recent years in an
attempt to open the countrys
doors to foreign investment and
catch up with the increasingly
modernised world. Looking at
LIe IurgesL cILy, Yungon, IL Is
obvious that modernisation is
creeping into the country, with
multinationals including Mer-
cedes, Chevrolet and Hilton
entering the market, with many
new hotels opening to accom-
moduLe LIe Ieuvy Inux oI Ior-
eigners each year.
While these new foreign com-
panies undoubtedly create new
jobs for the local people, it usu-
ally favours those who have had
the privilege to pursue a higher
education, particularly those
who have studied or worked
ubroud und cun speuk uenLIy
In Burmese und EngIIsI. n
Myanmar, women are tradi-
tionally taught to be gentle and
obedient, and were discouraged
from being career-minded as
it is thought to be the business
of the men. According to infor-
mation from the International
Monetary Fund (IMF) website,
while two-thirds of women
work, which is often at roadside
stores and sometimes building
roads in rural areas, they are
engaged mainly in unskilled
work at a low, unstable salary.
With a meagre 18 percent of
women in the country having
secondary education or higher,
uccordIng Lo LIe M hgures,
the vast majority of women,
usually in rural parts of the
counLry, Iuck specIhc und reIe-
vant skills for white- collar jobs
that earn better pay. This con-
tributes to a widening income
gap between the rich and poor,
especially with the opening up
of Myanmars markets to for-
eign investment, which usually
provides better paying jobs for
skilled workers.
In order to gain an insight into
the challenges faced by women
in the workforce, I interviewed
a number of career women
within the country who have
climbed their way to the top of
LIeIr respecLIve heIds und be-
come successful entrepreneurs,
professionals, managers and di-
rectors.
With gender discrimination
prevalent across much of Asia,
one may expect it to be rife in
Myanmar. However, the gen-
eral consensus of the interviews
was that it is not seen as a huge
issue by the women I inter-
viewed and, on the whole, wom-
en are well-respected by men
and are considered, on most
parts, equal to that of men. A
prominent example would be
that of the popular leader of the
opposition, Aung San Suu Kyi.
In the workforce, such as the
private sector, there appears to
be virtually no gender discrimi-
nation, especially in the up-
per management, as individu-
als tend to be more liberal and
open-minded. Performance, it
seems, is the most important
criteria for promotion in this
sector and an equal amount
of respect can generally be ex-
pected from the other party.
However, there are some limi-
tations in the government and
public sector where gender may
play more of a role in decid-
ing promotions. This is partly
due Lo senIor omcIuI posILIons
usually requiring military ex-
perience or connections that
women may lack in comparison
to men, as well as the capabili-
ties of women not being given
as much recognition by senior
executives as it is in the private
sector. Improvements in these
sectors are slowly making their
way through the changing of
laws to allow women ministers
in previously all-male ministe-
rial roles.
At universities in central My-
anmar, while the amount of fe-
A shopworker serves customers at a phone shop in downtown Yangon.
S
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/
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r
s
male attendees and applicants
are higher than that of males,
entrance marks for certain
courses, such as Medicine, are
seL sIgnIhcunLIy IIgIer Ior Ie-
males than for males. However,
with the education sector slowly
changing and being improved,
as well as previously male-only
courses being opened up to in-
clude females, gender equality
in terms of education is on its
wuy. YIng CIuu, one oI my In-
terviewees, noted that an engi-
neer in charge of renovations
for her recently opened fast-
food restaurant, Harleys, was a
young woman. Hence, evident
Contd. P z...(Prospects)
In terms of hiring staff, according to sev-
eral business women, they revealed that
while the basics of education are important,
most employers will hire based on the can-
didates willingness to work and be trained
changes in the education sec-
tor are showing, where more
women are working and leaving
their marks in male-dominated
industries, such as engineering
and construction.
n Lerms oI IIrIng sLu, uc-
cording to several business
women, they revealed that
while the basics of education
are important, most employers
will hire based on the candi-
dates willingness to work and
be trained. Though, of course,
Ior more skIIIed or specIhc jobs
like accounting, experience
und IIgIer quuIIhcuLIons ure u
deciding factor. For hotels like
Chatrium Hotel, as the Market-
ing Communications Manager
In LIe Yungon bruncI TIInzur
Myat Mon shared, ascending
to a senior executive level usu-
ally requires good experience
plus higher education beyond
a university degree, such as a
Masters Degree in respective
areas such as Business Admin-
istration.
While there may be occasional
gender preference when hiring
for stereotypically male jobs,
Ior exumpIe In LIe heIds oI ur-
chitecture or construction, it is
noL us prevuIenL wILI quuIIhcu-
tions and experience is slowly
starting to have more emphasis.
Hence, many businesswomen
ure conhdenL LIuL us Myunmur
continues to grow and progress,
especially with more interna-
tional businesses establishing
omces In LIe counLry, LIey wIII
bring along their own work cul-
ture and norms that will lead to
increased foreign interaction.
With the introduction of more
international norms and work
culture, gender discrimination
will be lessened and as individ-
ual capability and contribution
will be given more focus.
When asked about how most
career women juggle family and
work responsibilities in Myan-
mar, it was shared that most
of them either work with their
husbands in their own business
or have husbands who do not
mind them working as long as
they are able to perform family
duties, such as looking after the
children, though some do hire
domestic help to assist them.
In some cases, it is the women
who become breadwinners of
the family, and many of them
consLunLIy Lry Lo hnd u buIunce
between family and work.
Successful women entrepre-
neurs are masters of this bal-
ancing act. Im still trying to be-
come a master, said Veronica
Aw of Nervin Caf, a mother of
three children.
The women I have inter-
viewed all feel that they are
suLIshed wILI LIeIr decIsIons Lo
become career women, and feel
that they have accomplished
a lot. Being successful in their
careers and family life, they
feel that greater recognition is
also given to them as others ac-
knowledge that they are capable
of handling both their work and
family life well.
While it cannot be expected
in Myanmar for there to be full
equality in marriage, Veronica
Aw, among other businesswom-
en and entrepreneurs, believes
that men and women should
aim to share family responsibil-
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. Hilton ~~. .~~:~
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_.:..q .._ .:. . . . .q:~ q .:.
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_.,.:...q:~q.:.._~: _._
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._:.q.~ ,...|~.~:_..
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...:.~~~ ..~.~....:.
qq.._~.,~:.~q.,._.
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~_.__._.q:.._~.q,..~e
- ~~.~~ .e:_..~~q
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
FEATURE
12
From page ... (Prospects)
The majority of interviewees said that gender discrimination is not a major problem in Myanmar.
S
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R
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From page ... (Prospects)
are preparing their investment
plans for the country, many of
them coupled with educational
programmes or civil society col-
laborations.
Myanmar has an active civil
society working on various as-
pects of information society,
from press freedom to civic-
driven public libraries, such as
Beyond Access, an organiza-
tion that aims to transform the
countrys vast network of 5000
public libraries into connected
information and service hubs,
MIDO (Myanmar ICT develop-
ment organization, which or-
gunIzed LIe hrsL InLerneL Iree-
dom Iorum In Yungon IusL yeur),
and the Myanmar Blogger So-
ciety, which now collaborates
with telecom provider Ooredoo.
These networks and organisa-
tions could play an important
role in building the soft infra-
structure of the future informa-
tion society. Another initiative
with potentially wide reach is
the introduction of Wikipedia
Zero, whereby the Wikimedia
Foundation, through a partner-
ship with Telenor, gives free ac-
cess to the encyclopedias vast
information.
The legal side of Myanmars
information and internet gov-
ernance also needs to be re-
From page o... (Knowledge)
formed. Currently there exist
a number of outdated but still
valid laws, such as the Burma
OmcIuI SecreLs AcL Irom 1qz,
instated by the British Colonial
regime, which is part of the on-
going discussions on constitu-
tional reform ahead of the 2015
elections.
This year, however, there is a
great opportunity to introduce
open data initiatives in Myan-
mar: the country is conducting
ILs hrsL nuLIonwIde census In 1
years. Supported by UN organi-
sations, the data collection will
take place in March and April,
and provide a sound basis for
all further socio-economic de-
velopment.
Reliable information has been
a scarce resource in the past dec-
ades, and the country data com-
piled by various international
organisations such as UNDP,
ITU, and Worldbank has many
gaps or only shows estimates,
Ior exumpIe LIe hgures oI LIe
countrys population range be-
Lween z und 6q mIIIIon. DuLu
about livelihood, economy, and
exact size of the many ethnic
groups in the country is vague.
The latter is widely discussed in
the media in the preparation of
the census. Some ethnic groups
are worried that the census sur-
vey muy noL reecL LIe reuI sIze
oI LIe dIerenL groups due Lo
cIussIhcuLIon probIems.
Building an inclusive knowl-
edge socIeLy, wIere LIe benehLs
of data, information and knowl-
edge are available for all. Build-
ing intalligible resources is a
strategic task for any country,
regardless of its state of socio-
economic development.
This crticle ucs jrst pub-
lished on Open Knowledge
Foundation Blog and has been
republished here with the au-
thors permission. The author
can be contacted at waltraut@
gmail.com.
From page o... (Knowledge)
R
e
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r
s
ities in a marriage, rather than
the woman being the only or
sole family caregiver. A work-
ing mother would be unlikely to
be able to devote 100 percent of
Ier LIme und eorL Lo Ier cIII-
dren, so she believes responsi-
bilities between both parents
should become more equalized
especially in a rapidly growing
economy that brings about ris-
ing costs of living.
As for the issue of unskilled
and lowly educated women in
more rural areas of Myanmar,
associations like the Myanmar
Women EnLrepreneurs Asso-
cIuLIon (MWEA), wIIcI wus
formed in 1995, help organise
workshops and courses that
teach important and relevant
skIIIs IIke EngIIsI unguuge und
email correspondence for these
women, as well as try to ensure
more girls are able to continue
studying these skills.
When asked about their
thoughts on womens role in the
workIorce In hve Lo Len yeurs`
time, all interviewees were pos-
itive that women would play a
larger role in the workforce as
policies and mindsets are start-
ing to become more equalised
and liberal, as well as increas-
ing living costs putting pres-
sure on both women and men
to achieve better-paying jobs. It
was also predicted by Daw Lynn
Lynn that there would be more
women managers and directors
in the future, as she believes
Burmese women are hardwork-
ing, and would hence climb
their way to upper management
more easily.
Women, or anyone for that
matter, who are determined
and hardworking in their goals
wIII dehnILeIy be ubIe Lo cIImb
their way to the top, the found-
er oI Ier own uudILIng hrm
Daw Cho Cho Toe said, and her
ideals were also reinforced by
many successful women I had
the pleasure of talking to.
It is only when one dares to
chase their passion that one is
determined to pour their heart
into it, and have their passion
drive their careers and life, not
beIng uIruId Lo Iuce dImcuILIes
and challenges head-strong,
like the women I interviewed
have demonstrated, and from
it, success will come inevitably.
Men are not prisoners of fate,
but only prisoners of their own
mind -Roosevelt: this way of
LIInkIng Ius Lo be Inuenced
into the mindsets of current
and future generations of girls
by the governments future
policies and actions, as well as
with the assistance from associ-
uLIons IIke LIe MWEA, und en-
couraged by families to ensure
upward social and economic
mobility of women in Myan-
mar.
Tan Ren Rong has interned
at Consult-Myamar Co Ltd,
a business consultancy based
in Yangon. She is planning to
pursue a Diploma in Interna-
tional Business in April 2014.
Views are authors own, and do
not necessarily represent those of
Myanmar Business Today.
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
A protester hoIds the hand of a PoIice ofcer through a barrier during anti-government protests that have shutdown parts of
downtown Bangkok.
D
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la
n

M
a
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t
in
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s
ruwn-oot Thui Crisis Lnsettles Investors,
Muy eter New Money
Khettiya Jittapong
L
ong-term foreign inves-
tors say they are sticking
with Thailand despite its
political woes but the threat
of worsening chaos may scare
away new money as compa-
nies scope out other options
in neighboring countries such
as Indonesia.
Protesters trying to topple
the government have rallied in
the capital, Bangkok, since No-
vember. This month they have
forced ministries to close and
blocked major roads. They say
they will stop a general election
being held on February 2.
"Assuming the political woes
go on, foreign investors may
decide to shift to other coun-
tries like Indonesia, Vietnam
and Myanmar," Kyoichi Tana-
da, president of Toyota Motor
Corp's Thai unit, said this week.
"Many investors want to in-
vest in Thailand. If the situa-
tion has not been resolved, the
ones which are already invested
may not go away, but whether
they will invest more, it's ques-
tionable," said Tanada, also
vice-president of the Japanese
Chamber of Commerce, which
represenLs 1,zq Jupunese hrms
in the Southeast Asian country.
Thailand gets more than half
of its foreign director invest-
ment from Japan. That foreign
capital brings much-needed
money into a country that re-
corded u currenL uccounL dehcIL
in 2013 and may again this year.
It is the biggest car market in
Southeast Asia and a regional
production and export base for
top manufacturers such as Toy-
ota, Nissan and Ford.
It is also a major global pro-
duction center for hard disk
drives with big players such as
Seagate Technology and West-
ern Digital having operations in
the country.
Thai partners are putting a
brave face on things.
Hemaraj Land and Develop-
ment runs seven big industrial
estates, home to factories for
the likes of Ford Motor, General
Motors and Caterpillar.
David Nardone, its chief ex-
ecutive, said 10-20 percent of
new customers had postponed
signing contracts to take up fa-
cilities since December.
"It's short-term disruption,"
Nardone said, hopeful there
would be a recovery in the next
few months. "There may be
some people who don't know
Thailand so well and they may
take longer, have more ques-
tions and wait for clarity."
The optimists point to 2010,
when more than 90 people died
in another protracted bout of
political unrest. Foreign direct
investment jumped 88 percent
that year, the stock market
surged q1 percenL und LIe econ-
omy bounded ahead by 7.8 per-
cent.
This time, however, the pro-
tests have gone on for three
months and government work
is being disrupted.
Some $60 billion of infra-
structure spending may not get
started this year, for example.
Consumer conhdence IeII Ior
the ninth month in December
to a two-year low and investors
worry about a possible escala-
tion of violence, which will hold
back Southeast Asia's second-
largest economy after Indone-
sia.
"Political instability is always
prevenLIng InvesLmenL ows.
Long term investments pro-
jects may be reconsidered and
other locations may be reas-
sessed," said Rolf-Dieter Dan-
IeI, PresIdenL oI LIe Europeun
ASEAN BusIness CenLre, wIIcI
groups 1q Europeun cIumbers
of commerce in Thailand.
Foreign direct investment
probably totaled almost $13
billion in 2013 but could drop
Lo Iess LIun $8 bIIIIon In zo1q
even if tension eased and inves-
tors returned in the second half,
said Pimonwan Mahujchariya-
wong, an economist at Kasikorn
Research Center in Bangkok.
Investment also dropped in
zo11 wIen wIdespreud oodIng
disrupted the activities of global
eIecLronIcs und cur hrms.
"MuILInuLIonuI hrms Lend Lo
diversify their investments to
oLIer ASEAN counLrIes us weII,
to reduce risks (either from pol-
itics or disasters)," Pimonwan
said, adding FDI could return to
a more normal $8-9 billion per
annum in the next 3-5 years.
EconomIsLs suy TIuIIund's
fundamentals - a relatively large
market of around 67 million
people, a growing middle class,
pro-business environment,
good infrastructure and geo-
graphical advantages includ-
ing access to emerging markets
such as Myanmar - helped it
stand out in Southeast Asia and
attract investment.
Jongkie D. Sugiarto, chair-
man of the Association of In-
donesia Automotive Industries
(Gaikindo), said Indonesia with
ILs zqo mIIIIon peopIe wus weII
placed to catch up.
But the regulatory environ-
ment had to be improved and
the domestic market developed,
he said. "We also have to build
our infrastructure, from ports
to the provision of electricity
and gas, roads and so on. How
can we possibly ask car compa-
nies that want to invest in In-
donesia to build power plants
hrsL?"
This year was always going to
be tough for Thailand.
"Lackluster exports and weak
consumer spending from 2013
have resulted in low average
capacity utilization at around
6q percenL und IIgI growLI
of inventory accumulation,"
said Sutapa Amornvivat, chief
economist at Siam Commercial
Bank SCB.BK, expecting private
investment growth of about 3
percenL In zo1q, mucI Iower
than the average 10-year rate of
6 percent.
"BuL, IookIng beyond zo1q,
we think Thailand still makes
a very good long-term bet," she
said.
That sentiment was echoed by
Honda Automobile (Thailand),
part of Honda Motor.
"New potential investors
may be spooked by the politi-
cal woes," said Pitak Pruitti-
sarikorn, its executive vice-
president. "For Honda, we have
been in Thailand for more than
o yeurs und we ure sLIII conh-
dent in Thailand's long-term
outlook." Reuters
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~~. ..,._~..:.~~~ ~.~
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.,_.,._.
Political instability is always prevent-
ing investment flows. Long term in-
vestments projects may be recon-
sidered and other locations may be
reassessed
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
Chinu's Top iplomut Wunts
Iree-Trude eul with Iorope
Robin Emmott
B
eijing's top diplomat has
called on China and the
Europeun UnIon Lo con-
sider a multi-billion-dollar free-
trade deal, a once unthinkable
step that shows a big improve-
ment in relations between two
of the world's largest markets.
"There are bright prospects
Ior CIInu-EU busIness cooperu-
tion," Chinese State Councillor
Yung JIecII LoId reporLers uILer
meeLIng EU IoreIgn poIIcy cIIeI
Catherine Ashton ahead of a
visit to Brussels by President Xi
Jinping in March.
Yung suId boLI sIdes sIouId
"work jointly to create condi-
tions for launching a feasibility
sLudy oI u CIInu-EU Iree-Lrude
agreement."
British Prime Minister David
Cumeron LoId omcIuIs In CIInu
in December he was a strong
advocate of such a free-trade
deal.
BuL LIe Europeun CommIs-
sion, which handles interna-
tional trade negotiations on
beIuII oI EU counLrIes, Ius suId
LIere musL hrsL be progress on
an "investment agreement" to
muke IL eusIer Ior Europeun
countries to do business in Chi-
na.
Talks on that formally began
in Beijing last week, a big step
that many see as a potential
forerunner to a free-trade deal.
Europeun compunIes com-
plain of poor treatment in
China, such as being forced to
share sensitive know-how to
win access to Chinese funding
and local contracts.
Trude beLween Europe und
China has doubled since 2003
to more than 1 billion euros
($1.3 billion) a day, but China
receives just 2 percent of the
EU's InvesLmenL ubroud.
Talk of a free-trade deal,
which would create a market of
almost 2 billion people, seemed
unthinkable just a year ago,
when Brussels prepared to levy
punitive import duties on bil-
lions of dollars of Chinese solar
puneIs, seLLIng o LIe bIggesL
ever trade dispute between the
two partners.
A deal to set a minimum price
for the solar panels defused the
tensions.
China's State CounciIor Yang ]iechi has caIIed on China and EU to reach a free-trade agreement to boost biIateraI trade.
R
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s
Myanmar Summary
Wul-Murt to Lpgrude Chinu Vendor Appliunce
Clare Baldwin
U
S retailer Wal-Mart
Stores Inc has said it
will upgrade its vendor
compliance process in China,
requiring more documentation
and making use of a computer-
based system to help suppliers
manage associated paperwork.
The announcement came af-
ter state-owned China Central
Television (CCTV) criticised
the world's No. 1 retailer for cir-
cumventing its quality control
process and fast-tracking some
producLs wILI IIgIer prohL
margins.
Wal-Mart will "ensure the
correct documents and other
required items are in place be-
fore the products are sold in
our stores," the retailer said in
a statement.
Documentation includes la-
beIs LIuL uccuruLeIy reecL In-
gredients, government test
reports, China Compulsory
CerLIhcuLes, sumpIe producLs or
photographs, copies of manu-
facturing permits, details sub-
stantiating health claims and
claims such as "organic" and
"worId-Iumous", omcIuI bur-
codes and papers on intellectual
property.
"This process requires the col-
IecLIon, orgunIzuLIon, hIIng und
retention of well over one mil-
lion documents annually," the
company said.
"Wal-Mart China has now in-
vested in a computer-based sys-
tem enabling vendors to upload
all required legal documents.
This system was piloted in
September of 2013 and is now
ready for broad-based applica-
tion across the supply chain."
Wal-Mart, which operates
more LIun qoo sLores und wure-
houses in China, said immedi-
ately after the CCTV report last
week that it keeps a close watch
over its supply chain.
It said it only uses its expe-
dited special approvals process
In specIhc cIrcumsLunces sucI
as when a supplier changes the
size of a product or switches
distribution agents.
In the statement on Wednes-
day, the company explained ad-
ditional steps it would take to
address supply chain concern.
Wal-Mart is the latest in a se-
ries of foreign companies CCTV
has taken to task on issues rang-
ing from pricing to poor quality
Myanmar Summary
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products and shoddy customer
service. Reuters
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
AIter Iull, Yen in Sweetspot Ior Iconomy,
bot LS Wutching
William Mallard
A
fter falling by almost
u hILI sInce Jupunese
Prime Minister Shinzo
Abe came to power just over a
year ago, the yen is in a sweet-
spot for the economy.
Companies have roared back
wILI bumper prohLs us LIe cur-
rency's sIIde Lo hve-yeur Iows
made exports more competitive
and while import prices, nota-
bly for fuel, have climbed, im-
porLers ure benehLIng Loo.
But should the yen keep fall-
ing, the drawbacks of higher
import prices and possible an-
ger from Washington and other
trading powers could start to
ouLweIgI LIe benehLs oI u weuk-
er currency.
"I don't think many people
in Japan want a yen decline to
around 120 or 130 to the dol-
lar," said Bank of Japan (BoJ)
economist Nobuyasu Atago,
who is now on a stint at the
Jupun CenLer Ior EconomIc
Research. "Many companies
have already moved production
overseas and may also become
hesitant to boost exports for po-
litical considerations."
ndeed, Jupunese hrms ure
not clamoring for a further
drop and they believe the yen's
fall has largely run its course,
a new Reuters poll shows. For
years, a strong yen had sapped
Japan's export competitiveness
und worsened ILs deuLIon.
ExecuLIves uL ubouL IuII LIe
qoo compunIes In LIe ReuLers
Corporate Survey said they
both expect and hope the yen
will be in its current narrow
range of 100-105 to the dollar
six months from now, while
more than 90 percent predict
and want to see the Japanese
currency in a broader 90-110
range. Only 5 percent wanted
the yen to weaken beyond 110
to the dollar.
Even LIe Iosers Irom LIe weuk
yen see ILs brouder benehLs Ior
Japan. "For us the weaker the
yen gets, the tougher it gets,"
suId YosIIIuru UekI, presIdenL
of Japan Airlines CO, which
pays for its aircraft and fuel in
dollars.
"But it is important for Japan's
economy to rebound, so a level
of around 100 yen is necessary"
and weakening a bit beyond 105
yen would be better, Ueki told
reporters at a new year's gath-
ering of business leaders. "We
can adjust to it as long as there
is stability."Mitsubishi Heavy
Industries Ltd, Japan's leading
heavy-machinery maker and
aerospace company, would be
"grateful" for a yen slide to 115-
120 to the dollar, said chairman
Hideaki Omiya.
And yet, he said, "I think the
yen is balanced at the moment
around the 100-105 yen level.
From the viewpoint of both im-
porters and exporters, a skewed
rate is not good. And with the
strong yen reversed, what we
need now is stability."
Both China and South Korea -
major trading rivals to Japan
which compete in a number of
markets such as auto and elec-
tronics - have raised concerns
about the slide in the yen in re-
cent weeks.
The United States has wel-
comed Japan's economic re-
bound after Abe came to power
13 months ago promoting a
policy mix of massive BOJ eas-
ing and government spending
- dubbed Abenomics by the me-
dia.
If the yen's fall is the result,
rather than the aim, of these
growth policies, Washington
seems willing to tolerate a gen-
tle yen decline - to a point.
"They need to get their domes-
tic economy growing," Treasury
Secretary Jack Lew said this
month. But he said, taking ques-
tions at a forum, "their long-
term growth can't be rooted in a
strategy that ultimately turns in
any way towards reliance on an
unfair advantage because of the
exchange rate.
Ted Truman, a former senior
omcIuI uL LIe Treusury DepurL-
ment and the Fed, said that
as long as the Japanese "are
not deliberately acting to push
down the yen, I don't think, as a
matter of economics, the Unit-
ed States government would be
particularly unhappy."
But it was possible some US
omcIuIs suspecLed LIuL Jupun
was "encouraging further de-
preciation of the yen by wink-
ing and nodding, if not overt
actions," said Truman, a senior
fellow at the Peterson Institute
Ior nLernuLIonuI EconomIcs In
Washington.
Companies have recorded record prots after the Yen's sIide to a ve-year Iow made exports more competitive.
R
e
u
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If that is the case, "I'm sure
the Treasury is making clear to
the Japanese that if there is any
hint of that going on, it will be
a big problem," Truman said.
"And we have enough problems
with Japan as it is."
Still, current and former Jap-
unese omcIuIs knowIedgeubIe
about currency diplomacy say
a yen fall to 110 to the dollar
might not raise the heat on To-
kyo - that the threshold might
be more like 120-130 yen.
Treasury and Japanese Fi-
nunce MInIsLry omcIuIs de-
clined to comment on their cur-
rency conversations.
IMF Deputy Managing Direc-
tor Naoyuki Shinohara, who
wus Jupun's Lop currency om-
cIuI Irom zoo;-oq, sIrugged o
concerns that the yen's weak-
ness could lead to tensions be-
tween Tokyo and Washington.
"It is clear that what Japan
is trying to do now is beat de-
uLIon," Ie LoId ReuLers In un
interview. "There may be some
changes in the way (the U.S.
government) communicates
due to its relations with Con-
gress. But I don't feel Japan's
weak yen is seen as a big prob-
lem. Reuters
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Many companies have already moved
production overseas and
may also become hesitant to boost
exports for political considerations.
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
16
Myanmar Summary
Ioxconn Iyes Iuctories in LS, Indonesiu
Faith Hung
T
aiwans Foxconn Tech-
nology Group, the major
supplier of Apple Incs
iPhone and iPad products, has
said it is considering expand-
ing manufacturing to the Unit-
ed States in a move that could
open up new prospects for busi-
ness with Apple.
Chairman Terry Gou also
said Indonesia will be a top pri-
ority for investment this year.
That would tie in with Fox-
conns deal to design and mar-
ket phones in the country with
BlackBerry Ltd, as the Cana-
dian company seeks to reverse
its decline in the smartphone
business.
The US is a must-go mar-
ket, said Gou, speaking at the
groups annual year-end party
last week. He said many cus-
tomers and partners hope Fox-
conn, the worlds largest con-
tract manufacturer of electronic
goods, will set up manufactur-
ing facilities in the US.
Foxconns ambitious growth
plans could see it lift annual
revenue to T$10 trillion ($333
billion) a decade from now,
Myanmar Summary
Chinu Suys LS Shoold Stop New
omping Probe on Solur Prodocts
Sui-Lee Wee
C
hinas commerce ministry has called on the United States to
stop anti-dumping investigations into imports of solar power
products from China, expressing "serious concern" and vow-
ing to defend its producers.
US Lrude omcIuI IusL week opened InvesLIguLIons InLo ImporLs oI
certain solar power products from China and Taiwan, a move that
could have a major impact on the nation's fast-growing solar mar-
ket.
The US Department of Commerce said it initiated anti-dump-
ing duty and countervailing duty investigations, which will assess
whether the products are being sold in the United States below
their fair value, or if their manufacturers receive inappropriate lev-
els of foreign government subsidies.
"The Chinese side expresses serious concern," the commerce
ministry said in a statement on its website. "China urges the United
States again to carefully handle the current ... investigations, be
prudent in taking measures and terminate the investigation pro-
ceedings."
China will assess the impact on its solar industry and "resolutely
defend" itself through various mechanisms, the ministry said.
Myanmar Summary
Foxconn has announced pIans to open factories in the US and China as it pIans to continue its growth.
Irom T$q LrIIIIon In zo1.
The group, which includes
ugsIIp unIL Hon HuI PrecI-
sion Industry Co Ltd and Fox-
conn Technology Co Ltd, could
take advantage of geographical
proximity to open up new deals
with partners like Apple as they
develop new gadgets.
Best known for putting togeth-
er iPhones, Foxconn honed its
skills by meeting Apples exact-
ing standards and supply chain
rigor. It boasts a workforce of
more than 1 million, and the
scale to negotiate cheaper com-
ponent prices than BlackBerry
could obtain on its own.
Gou placed emphasis on Indo-
nesia for future development.
He said the country, rather than
India, will be best able to re-
place China as the worlds man-
ufacturing hub in the future.
ndonesIun governmenL om-
cials have said Hon Hai wants
to gradually invest as much as
$10 billion over 5 years with
IocuI purLner Erujuyu Swusem-
budu, und ndonesIu wIII oer
LIe TuIwunese hrm u Lux puck-
age aimed at kickstarting the
plan. Hon Hai has yet to con-
hrm LIese deLuIIs. Reuters
R
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s
Lion Air to Cuncel Order
Ior Iive ,S,s
I
ndonesias budget carrier
Lion Air announced last
week that it is planning to
cunceI un order oI hve Boe-
ing Co 787 aircraft and replace
them with smaller 737 models.
The carrier said it needed
widebody aircraft to accommo-
date more than the roughly 350
passenger capacity of the 787-
8, and will place a new order for
aircraft in 2015.
TIe ;;s wIII joIn u eeL LIuL
already includes a large number
of that model. The widebody
aircraft it intends to order next
year will be used on domes-
tic, high-frequency routes, the
company said.
The private carrier, which uses
Jakartas Soekarno-Hatta In-
ternational Airport as its base,
has shown impressive growth
in recent years and some re-
ports are tipping the airline to
closely challenge market lead-
ers Air Asia. In January, Lion
Air announced a venture into
the Thai market, operating Thai
Lion Air from Bangkoks Don
Mueang arport and also oper-
ates a Malaysian venture from
Kuala Lumpur.
Su Su
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e. ~ . ..:q~_..._~: ~.~~e_e... , ._., ., ..: .,. . .~ . . ~
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Apple Inc - iPhone . iPad
~ ~ , .:.~~ ~ ~. ~.:~ . ..:.
~ _......._ ~.- Foxconn
Technology Group . ._.:_~:.
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Apple . . . , ..:.~~ ~ ~.:.
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..:.e..e:.:.. ~.:...:.
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~_._ _._ . q:... . ~:. ~._.. ~
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e ~.~ ._~._.
L
io
n
A
ir
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
BP Buck in Iuvoor espite Spill Legucy,
Rossiu oobts
Andrew Callus
I
f you had spent 10 pounds
($16.50) on BP share on
April 19, 2010, you would
Iuve jusL nIne pounds ($1q.8)
now, including dividends. A
poor investment, however you
cut it, but also a remarkable re-
covery.
A day later an explosion at the
Deepwater Horizon oil rig in
the Gulf of Mexico would deal
LIe UnILed SLuLes ILs worsL o-
shore oil spill, and BP would
face the wrath of President
Barack Obama himself for the
death and destruction it caused.
Over the next two months, BP
shares lost nearly two thirds of
their value as the scale of the
disaster threatened to sink the
company.
Now some investors are sens-
ing a better future than they
had dared to hope.The shares
ure IrLIng wILI posL-spIII IIgIs,
and are the second-best per-
Iormer In LIe IndusLry's Lop hve
beIInd Exxon MobII sInce LIe
start of the fourth quarter.
This may have something to
do with the misfortunes of its
peer group - u prohL wurnIng
at Shell, cost overruns at Chev-
ron, und worrIes ubouL cusIow
und producLIon uL Exxon - noL
to mention a price-enhancing
share buyback program put
in place last year, but it is still
quite a turnaround in senti-
ment from 2010.
Then, the price of credit de-
fault swaps in BP bonds showed
that even its solvency was in
question, and Shell thought it
might have to mount a rescue
bid.
"It wasn't so much that we
wanted to buy, more we thought
the British government might
ask us to step in," recalled Pe-
ter Voser, Shell's chief executive
at the time, in a discussion with
Reuters last year.
Now, in a change of fortunes,
Shell has warned investors that
IL suered ILs worsL quurLer
since 2009 at the end of last
year - albeit with little damage
to its share price - while BP has
reshaped itself.
BP soId $qo bIIIIon worLI oI
Despite suffering a huge setback to its reputation after the 2010 oil spill, analysts say the company has come a long way in
recent years.
R
e
u
t
e
r
s
prIme usseLs Lo sLuy uouL - und
spenL $qz. bIIIIon on LIe spIII
cIeun-up, hnes und provIsIons
for future costs.
In a note published on Fri-
duy downgrudIng prohL Iore-
casts across the sector, ana-
lysts at UBS predict BP's return
on average capital employed
(ROACE) LIIs yeur wIII be 11
percent - on a par with Shell's.
BP shed a big chunk of its
earning power to pay for the
spill, but got prices that now
look enviable as the industry cy-
cle turns down. Rivals are now
falling over each other to get as-
sets on the block, at the risk of
driving prices lower.
A leaner, meaner asset base
has emerged, too. Meanwhile,
having settled criminal pro-
ceedings, and two phases into
a three-stage civil trial, an army
of lawyers is working to push
remuInIng spIII hnes und penuI-
ties way into the future. Barely
a week goes by without a new
legal challenge from the British
group aimed at keeping a lid on
its liabilities.
ExpIuInIng u beL IL mude on
BP in a letter to investors last
week, U.S. hedge fund manager
DuvId EInIorn's hrm Green-
light Capital said investors were
overlooking the company's im-
proved return on capital in its
core business and remained too
focused on the spill fallout.
Greenlight said it had bought
BP stock at an average price of
$q;.q u sIure. L suId LIe com-
pany had a net asset value of
nearly $70 a share, even assum-
ing it will have to pay out far
more than it has provided for.
BP's U.S.-listed stock traded at
uround $q8.6o on rIduy.
Deutsche Bank - one of 13 in-
vestment banks with a buy or
outperform note on the stock,
according to ThomsonReuters
data, compared with three rat-
ing it underperform or sell - ar-
gues that the net present value
of spill litigation has fallen.
"This is not to say that BP's
position in the court trial has
improved ... rather... it is likely
to be multiple years before ad-
ditional cash of any magnitude
over and above that already
~~~ ... -_.. ~ q~~ BP
- qee:~..~,e..: .~:.
..| ~~ ..| ~..q~,..'.:
~'.~, q._.. e.~.| .~:...|
..| ~..q~,..'.: ~,.,
ugreed ows Irom LIe BP buI-
ance sheet," the bank said in a
research note.
The note estimated cash out-
ows Irom IuLure hnes uL Iess
than $1 billion a year over the
next decade.
That is only about two weeks'
worth of capital spending at
current rates.
But numbers rarely tell the
whole story, as analysts discov-
ered to their cost in 2010 when
LIey ugged repeuLed opporLu-
nities to buy BP shares - all the
way down from 6 pounds to a
low of less than 3 pounds.
Some investors and insiders
privately question the direction
and style of management since
former chief executive Tony
Hayward resigned, taking re-
sponsibility for the spill.
Hayward's replacement, Bob
Dudley, has extracted about
$12 billion from the company's
troublesome Russian invest-
ment and given some $8 billion
of it back to shareholders.
But he has yet to prove that
the remaining half - which be-
came a 19.75 percent stake in
state-controlled Rosneft - is
anything more than a high-risk
minority holding in a company
based in a politically unpredict-
able country, despite his seat on
the board.
"Dudley doesn't seem to have
that pally relationship you need
with Igor Sechin," said an in-
dustry source who has done
busIness wILI LIe RosneIL CEO.
TIe BP CEO IImseII remuIns
conhdenL oI IIs RussIun move.
"BP's strategic investment in
Rosneft allows us access to
growth opportunities previous-
ly unavailable to us in Russia,
one of the world's largest pro-
ducers of oil and gas combined
with unparalleled resource po-
tential," he said in October last
year.
Spill litigation still takes up
a lot of management time, too.
The outcome of a New Orleans
trial under judge Carl Barbier,
conducted under the terms of
U.S. maritime law without a
jury, Is sLIII very mucI In ux.
BP is also banned, due to its
criminal conviction for the rig
disaster, from bidding for any
new U.S. licenses in the Gulf of
Mexico.
Time will tell, but for some,
the company still has a long way
to go.
"BP has become a litigation-
dominated company, and they
have an issue in Russia," said oil
and gas blogger and independ-
ent industry investment adviser
Malcolm Graham-Wood.
"I LIey Iuve u prohL wurnIng
anything like Shell's, they will
have to buy back a lot more that
7 million shares a day to keep
the price up."
BP's neL prohL Is expecLed Lo
be around $2.7 billion on a re-
placement cost basis for the
quarter, down from around
$3.9 billion a year ago based on
BP's own poll of around 20 ban-
ks. Reuters
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.q,~ . .~ .q, q:.e . .:._..
.,:~ ~. ., ~ ~..q ~, . ~.,
_e ~..q:... ~...,.q,ee~.
~ .~_~.q._.
BP ~.,_e ._. .q,ee~..:.
._~: ......:.. .~....,.
..:.._~: ..~:.q~~:..:.
- ~.~..|.~ q..q._.
..._~:..:~.| BP - qee:
.:.._ ~,e. ...... ~...:
_.. e._e.q...~ ~.~~:. ~_~.
~~e~.~~..~...._.
e. ~.| ~.q .. ._. . . . .:.~.,
_e ,.~..:..q._~ ..
.~:..,..:~,:~~ .~_.
.:.qee._.q.,._..q,ee~.
~ . . , ._.:~ _. ..,:~ q e e:.... , .
.:. _., ~.:.. _. . .~ ~ . ...~ ~:.
.._ .q,..,.~ ~.~:...
..: q ~ . . ._ . . , .|.. .:q .
~ Exxon Mobil - .,:~~
~_q.._.
Shell ~.~~.,_e ~~.~_.~
qq.~ .~:.q._ ~.,~:.
q.,_.. Chevron~.,_e._. .~
. ~ :.._ ~ , ~.q ~ ~ .~: . ,
.,_.. Exxon ~._. ....q.
...... ~...~~ ..q..q:
.:.q .,._. BP ~.,_e ~._.
~.,. .~. q. ~ q . . q..: ._ .
e. ~.| ~._.:.~.~. . ~ .~ _.
.:qeeq.,._. Shell . q...
_.....:.~:. ~.~~.,_e ~..
q:... ....~~:.~ .~_~.q
._~:. .~...._.:_~:..._.
BP._ ._~._. .:.~ .....q, ~~ ~
..,.....:.~~..q~,..'
.:,~.e~.q:... q._~: .
.q._.
The shares are flirting with post-spill highs,
and are the second-best performer in the
industrys top five behind Exxon Mobil since the
start of the fourth quarter
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
18
Myanmar Summary
Anulysis: Brituin's Cur Indostry Muy Inspire
More Bulunced Iconomic Recovery
Analysts say that a growing auto industry in Britain could contribute to an improved economy.
David Milliken
A
bumper year for Brit-
uIn's cur IndusLry oers
some hope the econo-
my will start to grow in a more
sustainable way, with a better
balance between investment
and spending.
In 2013, Britain enjoyed its
best year of economic growth
sInce LIe hnuncIuI crIsIs, ouL-
pacing other advanced nations.
But there was a catch. The re-
covery was driven by consum-
ers spending more and saving
less.
A smooth transition to long-
er-lasting growth, propelled
by business investment and ex-
porLs, Is u key IurdIe Ior zo1q
uccordIng Lo LIe Bunk oI Eng-
Iund (BoE).
The car industry is showing
signs of leading the way - but
there have been false starts be-
fore.
Every yeur sInce zo1o, BrIL-
ain's budget watchdog has
predicted a rebound in annual
business investment - but it is
still a third lower than before
LIe hnuncIuI crIsIs oI zoo;-
2009. It is essential for Britain's
recovery.
"The pace of investment -
when it comes - will ultimately
determine the duration of the
currenL upswIng," BoE poIIcy-
muker un McCuerLy suId In u
speech to businesses last week,
uddIng LIuL muny hrms were
operating close to capacity.
A sLrIng oI surveys sIow hrms
are more willing to pump mon-
ey into their businesses than at
any time since the crisis - in the
services sector as well as manu-
facturing.
Rebalancing is often talked
about in terms of moving
the economy towards manu-
facturing and away from ser-
vIces. BuL wIuL LIe BoE wunLs
is a shift in spending towards
investment and away from con-
sumption, rather than between
economic sectors.
Other positive signs in-
clude a growing appetite
among banks to lend. And Brit-
ain's stronger economic out-
Iook sIouId encouruge hrms Lo
invest their large cash reserves.
BuL, Ior now, omcIuI duLu on
hrms IncreusIng InvesLmenL Is
thin on the ground.
The exception is the car in-
dusLry - wIIcI benehLed Irom
an upturn in demand well be-
fore other sectors and saw more
LIun z. bIIIIon pounds ($q.16
billion) of new investment in
2013.
Britons bought 2.265 million
new cars in 2013, the highest
number since 2007 and an 11
percent rise on the year that
bucked the trend in Germany,
wIere cur suIes IeII q percenL,
and France, where they dropped
by 9 percent.
One big factor in Britain was
probably compensation pay-
ments by banks to consumers
for mis-sold insurance which
were often big enough to be
used as a deposit on a new car.
CIeup hnunce deuIs und record-
low rates helped fund the rest.
It helped drive Britain to pro-
duce 1.510 million cars in 2013,
the highest number since 2007,
according to the Society of Mo-
tor Manufacturers and Traders.
S
t
e
f
a
n

W
e
r
m
u
t
h
/
R
e
u
t
e
r
s
Britain is a hub for automak-
ers including Nissan, Toyota,
Honda, BMW, General Motors
and Tata Group's Jaguar Land
Rover.
Germun purLs muker EIrIng-
Klinger has invested 10 million
pounds in a new plant in Red-
cur, norLIeusLern EngIund, Lo
make the light-but-bulky heat
shields that protect cars from
hot exhaust gases. These will
be hLLed Lo BMW MInIs buIIL In
Oxford, replacing parts made
eIsewIere In Europe.
The investment was only fea-
sible thanks to strong domes-
tic demand, said Ian Malcolm,
EIrIngKIInger's UK munugIng
director.
"The growth in vehicle pro-
duction in the UK is of much
greuLer sIgnIhcunce Lo us, be-
cause the product we are start-
ing to supply is much more dif-
hcuIL Lo sIIp IuIIwuy uround
the world," he said.
There are some tentative signs
that the growth in automotive
investment is being replicated
more broadly.
Manufacturers plan the big-
gest increase in investment in
zo1q sInce LIe sLurL oI LIe hnun-
cial crisis, surveys show, much
of it to replace older equipment.
Companies in the services sec-
tor showed the strongest inten-
tions to invest since 2000, ac-
cording to one survey.
And Britain's economic turna-
round means shareholders are
more wIIIIng Ior hrms Lo spend
their precautionary cash piles,
said Ian Stewart, chief econo-
mist at accountants Deloitte.
But it is too early to tell if this
is just cyclical or marks the start
of a longer-term approach to in-
vestment.
Samuel Tombs, UK economist
uL CupILuI EconomIcs, suId Ie
expected the rebound in invest-
ment to be cyclical due to inves-
tors' pressure for short-term
prohLs.
"The trend before the reces-
sion was for business invest-
ment to have a smaller share of
GDP. Those pressures may still
be around even when the econ-
omy is back to health," he said.
Igures Irom LIe OECD Irom
zo1z sIow BrILIsI gross hxed
cupILuI IormuLIon wus 1q per-
cent below its pre-crisis peak,
while U.S. investment was 5
percent below and German in-
vestment was 5 percent higher
than pre-crisis levels.
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Every year since 2010, Britains budget
watchdog has predicted a rebound in
annual business investment - but it is still a
third lower than before
the financial crisis of 2007-2009
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
While expats are often drawn to Southeast Asia due to the paradise-like life on offer, many aren't aware of the increased risks
of living in the region.
David Mayes
O
ne thing that continues
to surprise me about
working with expats
in this region is how so few of
them have put protections in
place for their loved ones in
the rare event that something
should happen to them. The
sad reality is actually that these
events are not as rare as most of
us would like to believe. All you
need to do is take a quick look
uL LIe hgures Ior roud morLuI-
ILy ruLes In SouLI EusL AsIu und
you will likely come to the con-
clusion that, as great as life is in
this part of the world, nothing
comes Ior Iree. TIe Lrude-o Ior
life in paradise (at least in my
opinion thats what this region
is), is that statistically speak-
ing life is a bit more dangerous
here.
The main reason so many
well-paid expats go without
proper life insurance coverage
- and thus leave their children
and other loved ones need-
IessIy exposed Lo LIe hnuncIuI
burdens that would suddenly
fall on them in the event of a
sudden and unexpected death
- is partially due to receiving
poor advice from many of those
in my industry. In any highly
regulated jurisdiction in the
world, advisors are required to
make sure protection is in place
before even beginning to have
the conversation about invest-
ments, etc. Unfortunately as the
latter pays much better and in
the international environment
advisors have more freedom,
life insurance is quite frequent-
ly glossed over for the quicker
buck of setting up some form of
an investment account.
Also adding to the problem is
Are Yoor Loved Ones Protected?
human nature. Life insurance
has been said to be the hard-
est thing on the planet to sell,
yet nobody wants to go to their
grave knowing their children
ure wILIouL LIe hnuncIuI sup-
port needed to get them through
their education and give them
a fair chance in the world. The
human mind does not like to
think about the fact that some-
duy we ure goIng Lo dIe, yeL h-
nancial planning is essentially
a binomial situation. We either
live a long time and thus need to
save towards retirement, or we
die young of some unexpected
disease or accident and should
have insurance in place to pro-
tect our loved ones. Most peo-
ple naturally are quite happy to
plan and save for retirement be-
cause in the back of our minds
we would like to believe that
car crashes, heart attacks, and
cancer are things that only hap-
pen to other people. The reality
is that these things can and do
happen and can happen to any-
body. While that is brutal and
harsh truth, burying your head
in the sand and pretending it
isnt so is a denial that could
someday bring extreme hard-
ship to the ones that you love
most.
To end on a more positive note
since this is a slightly gloomy
subject to be discussing, I look
at paying life insurance premi-
ums as the one time in life you
can use Sods Law to your ad-
vantage (thats Murphys Law
for the Americans out there).
Paying for life insurance is the
one time in my life that I am
quite willing to make a bet and
hope to God that I not only lose
said bet, but lose it in a big way.
David Mayes MBA provides
wealth management servic-
es to expatriates throughout
South East Asia, focusing on
UK Pension Transfers. He can
be reached at david.m@fara-
mond.com. Faramond UK is
regulated by the FCA and pro-
vides advice on pensions and
taxation.
F
ile
s
Myanmar Summary
Yomu Inters IMCG Murket with ABC Groop Acqoisition
Daisuke Lone
Y
oma Strategic Holdings,
the Singapore-listed
company with business
operations in Myanmar, has
mude ILs hrsL Ioruy InLo Myun-
mars fast-moving consumer
goods (FMCG) industry, by
signing an agreement with the
Asia Beverages Co Ltd group of
companies (the ABC Group).
The agreement also involved
prIvuLe equILy hrm PMM PurL-
ners Limited, who will take a 20
percenL sLuke und Yomu u o
percent stake in ABC Groups
assets and businesses relating
to the production, branding,
marketing and distribution of
bottled water, spirits, wines,
beers, alcoholic beverages and
other FMCG products in Myan-
mar.
Yomu`s proposed ucquIsILIon
will involve up to $11.1 million
in investment, with $3.3 mil-
lion paid up front, and a further
Myanmar Summary
$7.8 million to be paid at a later
stage based on certain perfor-
mance benchmarks.
Speaking on the agreement,
Andrew RIckurds, Yomu SLruLe-
gIc`s CEO, suId, TIIs purLner-
ship with ABC Group presents
sIgnIhcunL Iong-Lerm oppor-
LunILIes Ior Yomu SLruLegIc Lo
expand its entry into the FMCG
sector. In addition to working
with ABC Group to scale its cur-
rent production and distribu-
tion capabilities into a larger
FMCG platform, we are also
looking to establish relation-
ships with local and interna-
tional FMCG groups. Beyond
that, there are also exciting op-
portunities for us to create syn-
ergies with the other businesses
In LIe Yomu SLruLegIc porLIo-
lio.
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Limited ._ ..,.qee: ~
q:..,.~ . . . :..__ e.._.
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Indiu Aims Ior Biluterul Pucts with
CLMV Nutions
Anindita Dey
T
he government of India
proposes to pursue bi-
lateral pacts with Cam-
bodia, Laos PDR, Myanmar
and Vietnam (CLMV) in order
enhance the footprint of Indian
investments and trade in those
countries.
Currently they are part of
LIe ASEAN bIoc buL omcIuIs
added that their socio-econom-
ic conditions and proximity are
more suitable for the Indian
business environment and the
opportunities could be exploit-
ed In muLuuI benehL LIrougI
one- to one agreements rather
than a combined approach. In-
dia has gone ahead with sepa-
rate pacts with Singapore and
Malaysia.
To LIIs eecL, governmenL
omcIuIs, uccompunIed by busI-
ness delegations from each
country, have started visiting
the countries. According to of-
hcIuIs, LIese ure prepuruLory ur-
rangements towards clinching a
bilateral agreement.
They also mentioned that such
visits are more of a preparation
In cuse LIe RCEP (RegIonuI
CompreIensIve EconomIc purL-
nership) does not work out. The
RegIonuI CompreIensIve Eco-
nomIc PurLnersIIp (RCEP) Is
a Free Trade Agreement (FTA)
scIeme oI LIe 1o ASEAN Mem-
ber States and its FTA Part-
ners - AusLruIIu, CIInu, Jupun,
Korea and New Zealand to be
concluded by the end of 2015.
It includes more than 3 billion
people, has a combined GDP of
about $17 trillion, and accounts
Ior ubouL qo percenL oI worId
trade.
As per u sLudy by ExporL und
Import Bank of India, even
India is courting CIMV (Cambodia, Iaos, Myanmar and Vietnam) countries in order to increase Indian inHuence in the business
environment there.
R
e
u
t
e
r
s
when most of these countries
share boundaries and close
proximity to India, China,
South Korea and Thailand have
major share in foreign invest-
ments into these CLMV region
which in 2012 aggregated to $
12.5 billion, 11 per cent of the
LoLuI Inows InLo LIe ASEAN
region. On the other hand,
Indias approved direct invest-
ments in joint ventures and
wholly owned subsidiaries
in the CLMV countries dur-
ing April 1996-March 2012
amounted to around 700 mil-
IIon wILI buIk ows Lo VIeLnum.
For Cambodia in particular,
areas of greater export potential
are knitted fabric, machinery
and instruments, vehicles, elec-
trical and electronic equipment.
For Lao PDR, mineral fuels,
oil, aircraft, space craft, bever-
uges oer udded opporLunILIes
over and above the areas with
export potential in Cambodia.
Similarly, for Myanmar, added
areas are animal and vegetable
fat, ships, boats, salt, sulphur,
optical and technical, medical
apparatus, paper, manmade
hIumenLs, IurnILure , IIgILIngs,
organic chemicals, footwear, .
In its recommendations, the
sLudy Ius IdenLIhed hve up-
proaches to develop the bi-
lateral investments into each
oI LIese counLrIes. ExporL oI
agri-related machinery and
equipment, development and
exploring mineral sources with
buyback arrangement, develop-
ment of highways, roadways,
railway networks and power
systems are some of the areas
proposed for enhancing com-
mercial relations and manpow-
er development. For manpower
development, the suggestion is
for tie up of the CLMV countries
with entrepreneurship devel-
opment of India, Ahmadabad,
National Small Industries co-
operation, New Delhi towards
human capability and develop
SME secLor In LIeIr respecLIve
counLrIes. EXM bunk ILseII
sees u IoL oI opporLunILy In SME
hnuncIng wIIcI uL presenL IL Is
doing through line of credits,
projecL exporLs, hnunce Ior joInL
venLures, hnuncIng LIrougI In-
stitutional linkages to trade
bodies exploring opportunities
in these countries.
Myanmar Summary
MIC Cluries Ioreign Bosiness Applicution Process
Su Su
L
ast the week, the Myan-
mar Investment Com-
mission (MIC), the group
responsible for assessing busi-
ness applications from foreign
companies, released instruc-
tions clarifying the application
process for businesses looking
to operate within the country.
In January 29s edition of the
state-run New Light of Myan-
mar, the MIC released a no-
tice saying, Investors and ap-
plicants need to clearly know
MICs permit processes as there
is widespread news that getting
the greenlight has cost those
applicants a lot of money.
Detailing the application pro-
cess, the notice said that inves-
Lors or Iounders ure Lo hII ouL
the designated proposal form,
which is then submitted to the
MC omce eILIer In Yungon or
Nay Pyi Taw. Applications are
then discussed by the Proposal
Assembly Team (PAT), which
meets monthly in Nay Pyi Taw,
which decides whether the ap-
plication is to be accepted or re-
jected. The PAT then discusses
the proposals with the relevant
authorities from the govern-
ment and respected ministries,
beIore u hnuI dIscussIon Is IeId,
involving the founders or inves-
tors to discuss any concerns.
Regarding some concerns that
investors have paid too much
money during the application
process, the notice declares
that, all applicants are request-
ed not to pay service charges
and other charges in processing
the documents in the process.
In an email sent to its sub-
scrIbers, IeguI hrm KeIvIn CIIu
said of the note, It appears
that the MIC is concerned that
applicants have been required
to pay additional government
fees apart from the ones already
prescribed.
Myanmar Summary
~ . e~. .q._ ~.. :. .e:. .:~
_.,.:.. -e~,. (CLMV)
... . - ..:~ _ :. ._
~~ .~ . ...| ...: q ~ . ..:
~_.~.:.~ .|~..:q~q,
~~~ ~._..~..~ _...._..
~..|....~ ~.e- q...
_.....:.. ~,.e..:. ~.~~
.:q,~~~_e.._~:. .q._.
~. .|.... ._ ~:. e ~e ~
..:._e._.. e..~q~ ,.~-
.....:..q.~._.~.,.:.. ,e,
.~.....,..:.._~: ~.e
. . . :. .q. ~, . ~ . ~. ~...
.~: ..:.~~ ~ . ..: ..:~.,
~:.q ._~: . ~. ..: .:.~ ._ .:
_~:._~_.. .~..... ....|.
..: q ~ . . q: ..:~ _ .~ .:.
~ qq.~: ..:q~.:.ee._.
q.,._.
~ . e._ . ~:. . ....q :..
.:.. ._ . ~~ .~ ..:~ _ .~
.:.~:. qqq,~~~ _~....:..
._~: . . q._ . ~. .|. ~. .. .
. ~..q~...:.:.. ...:..q.
~ e .:. . e .:. ._ . .:. .
.~.:..q:~_ ..:~_.~
.:. qqq,~~~ ._.....~:..:.
.~ .,_ . _ e. _ . . ~. ..: .:.-
._.:_~:..~~q .....e~..:
~_.~.:. qqq,~~~ ~_ ~..
.q..:...: ~.~..:.._.q
._~:. .q._.
Besides, government promot-
ed projects, the study has also
suggested Indian companies
could participate in multilateral
funded projects as World Bank
and Asian Development Bank
are active in funding projects in
CLMV region.
Business Standard
. _.:.~.~.:.. ..,.~._.
..:~ :.. .:.~~ ~ ~:~, q ._
_.,.:q..._.....~:.q. .,.
._ ~.~ ~ _., .:. _ . . , ..:.
..: q ~ . ..: . .. :..q.. . , .
.:.~~ ~ . ~. ..: . . , ...:~
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~~~ ,_~:..~.:.~ ~_.,
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..:~ ._..~.q: ..,..
.:.~ q .. .. :. q :.q, . ~. _. .
..,.~._...:~:...:.~.,
_e ..,.......:~.~
qqq,~~~ .._~.~._.:~~_.:.
~,~.q._e .~..:.~..'
.,._ ~~ ~ _e. ._~: . _., .: q .. .
_.....~:.q. ._.:_~:..._.
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
GI Annoonces O& G Purtnership with SMART
Technicul Services
Daisuke Lone
G
eneruI EIecLrIc (GE)
Oil & Gas last week an-
nounced a partnership
with SMART Technical Servic-
es, a leading local service com-
pany in the Myanmar Oil & Gas
Industry.
The collaboration will allow
SMART to make drilling and
surface equipment available to
operators for future Oil & Gas
projects in Myanmar.
This partnership will be ben-
ehcIuI Lo boLI purLIes InvoIved
wILI GE oerIng Lo LrunsIer LIe
needed knowledge, experience
and technology to our talented
fellow citizens who are the fu-
ture of Myanmar. I am certain
that this partnership will be the
core stimulant that helps drive
the development of our coun-
try, said U Myint Swe, chief
mInIsLer oI Yungon govern-
ment, who was speaking at the
signing ceremony.
GE, wIo Iuve been operuLIng
in Myanmar since 2012, have a
vast portfolio of products and
services for drilling and pro-
duction, including surface well-
Ieuds, ow conLroI equIpmenL,
blow-out preventers and riser
equipment.
Todays announcement re-
ecLs our Iong-Lerm commIL-
ment to grow with Myanmar
and partner with local corpo-
rates and the government to
solve the tough challenges face
in the Oil & Gas sector. While we
have created in-roads in our Oil
& Gas business, there is much
to be achieved for the coun-
try and its people, said Stuart
Deun, CEO oI GE ASEAN.
Its range of land applications
range from shallow, low-pres-
sure wells to critical service
wells drilled to depths of more
than 20,000 feet, requiring
many casing strings, large rigs
and reliable high-pressure and
LemperuLure soIuLIons. O-
shore applications include dif-
IerenL Lypes oI hxed und ouL-
ing platforms such as jack-up
drIIIIng rIgs, ouLIng drIIIIng
rIgs und ouLIng producLIon,
sLoruge und omoudIng (PSO)
units.
Myunmur Is GE`s nInLI coun-
Lry In ASEAN. GE Ius been In
the region for over 100 years
with revenue exceeding $3 bil-
IIon und orders exceedIng $q
billion. The company has a
workforce of close to 7,500 em-
pIoyees In ASEAN.
Myanmar Summary
Une of the projects being aided by the ]apanese Ioan incIudes a raiIroad connecting
Yangon and Mandalay.
Myunmur to Lse New
Jupunese Loun
on Ioor Projects
M
yanmar will use 63.2
billion yens' (about
610 million U.S. dol-
lars') new Japanese loan for
conducting four projects, an of-
hcIuI Ius suId.
The four projects are the up-
grudIng oI Yungon-MunduIuy
ruIIroud, wuLer suppIy In Yun-
gon, infrastructural develop-
ment in Thilawa Port and devel-
opment of irrigation facilities in
the western Bago region, Minis-
ter of Finance U Win Shein was
quoted by state media as saying
during the ongoing parliament
session.
Japan pledged to provide the
fresh loan during Myanmar
President U Thein Sein's at-
Lendunce uL LIe ASEAN-Jupun
Summit in Tokyo last Decem-
ber.
Japan has been providing as-
sistance for the development
of Myanmar's communication
and postal service as well as of-
fering to train Myanmar police
forces by conducting technical
courses.
AccordIng Lo omcIuI sLuLIsLIcs,
Japan's investment in Myan-
mur umounLed Lo zqz.qz mII-
lion U.S. dollars as of November
2013 since Myanmar opened to
such investment in late 1988
and it ranks the 10th in Myan-
mar's foreign investment tally.
Xinhua
Myanmar Summary
A
b
h
ijit

D
u
t
t
a
General Electric (GE) . .,.
._~.~~ _.,.:.q,..:~
.:~ . . . , .~ . ~, ._._ ~ .
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SMART Technical Services .
~~ .~ . ...| .. ~ ._~_:. ._~: .
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~.~~.,_e _., .:.-~,:~
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~~ ~ e. . . , .. ...| ...: q ~ .
._ ~.~...:.:~.....
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..._~.~,_~... ._...~ ._.:
_~:..._.
Bungludesh-Myunmur
Shipping Lune
Irom Murch
Kyaw Min
A
shipping line connecting Myanmar and Bangladesh
will get underway in March in order to boost trade
between the neighbouring countries, Bangladesh
Commerce Secretary Mahbub Ahmed announce last week.
The vessels were supposed to launch a year ago but were
delayed amid, what Bangladesh reports as political tension
between the countries.
EveryLIIng Is now uL LIe hnuI sLuge. We ure reudy Lo oer
our inland ports for use by vessels from Myanmar, he said,
adding that vessels from Myanmar would be allowed to use
the ports, which are located at Chittagong, Monla, Naraya-
gunj und TeknuI In BungIudesI und Yungon, PuLIeIn, SILLwe
and Maungtaw in Myanmar.
Bilateral trade between the countries stands at $100 mil-
lion per annum, and it is hoped that the shipping lanes will
IeIp pusI LIuL hgure hve-IoId Lo $oo mIIIIon.
Bangladesh and Myanmar re-established the Dhaka-
Yungon uIr connecLIvILy IusL yeur und our nexL LurgeL Is roud
connectivity, said Ahmed, who was speaking at the Bangla-
desh-Myanmar Joint Trade Commission in Nay Pyi Taw last
month.
Myanmar Summary
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
Myanmar Summary
Contd. P z...
Inubling Sostuinuble Vuloe Chuins in Asiu's
Appurel Irontier: Boilding Homun Cupitul und
Improving Working Conditions
Maximilian Martin
P
art II of this series
on creating sustain-
able apparel value
chains examines how hu-
man capital and improv-
ing working conditions
can enable progress to-
ward sustainability and
competitiveness.
Myanmars readymade
garment industry is still
small when compared
to that of neighbouring
Bangladesh, the worlds
second-largest sourcing
hotspot. The formers 350
garment factories cur-
rently in operation are
utterly dwarfed by the
latters 5,600. But more
than 700 new factories
are expected by 2015, and
the industry in Myanmar
is growing quickly, earn-
ing $917 million in 2012;
up from $770 million in
zo11. EsLImuLes sIow LIe
potential to create more
than 10 million addition-
al non-agricultural jobs
by 2030. Indeed, one of
the most striking com-
parative advantages of the
countrys location is its
availability of abundant,
low-cost, and fairly well-
educated labour. Key to
making sustainable sec-
tor growth happen will be
managing the workforce
well and building human
capital fast enough.
Wor ki ng Condi ti ons
Ar e a Lever of I ndus-
tr y Upgr adi ng
Labour conditions in
the apparel industry are a
leading stakeholder con-
cern around the world. At
the root of the problem
is a widespread percep-
tion that decent work and
competitive enterprises
ure In conIcL wILI eucI
other. Owners and man-
agers often assume that
actions that aim to im-
prove working conditions
or safety merely create ad-
ditional cost burdens for
enterprises, even though
these improvements can
actually yield productivity
returns as well. Research
by the International La-
bor Organisation (ILO)
and others corroborate
such a potential win-win
scenario, and show how
unproductive the wide-
spread practice of man-
agement by shouting is.
Improving workers voice,
empowerment and skills
through participatory
management is a means
to improve working con-
ditions and to achieve ef-
hcIency ImprovemenLs
uL LIe sume LIme. YeL,
LIe benehLs LIuL respon-
sible practices generate
for companies and work-
ers alike are often over-
looked.
The new report released
by mpucL Economy-u
global impact investment
und sLruLegy hrm-LILIed
Creating Sustainable Ap-
parel Value Chains pro-
vides an evidence-based
assessment of the pros-
pect of sustainable textile
and garment value chains
and the levers needed
for sustainable industry
transformation, includ-
ing the levers of human
capital and working con-
ditions.
A Shor tli st of Best
Pr acti ces
In terms of social per-
formance, the research
surfaced a number of
hrms In mujor sourcIng
locations that actively
take steps to meet worker
needs and enable partici-
patory management. The
highlights include:
Strong human re-
source management
practices that include
internal posting of job
openings and encour-
agement of employ-
ees to apply for these
positions. Sophisti-
cated HR practices
also include evalua-
tion of employees
HIgIIy emcIenL sew-
ing lines
Free meals, free
LrunsporLuLIon, u zq-
hour medical center,
on-site sports and
recreational facilities
In-house doctors,
nurses, and paramed-
ics to assist with pri-
mary healthcare and
disease prevention
(e.g. providing free
screenings, diagnosis
and basic medicines)
In-house canteens
overseen by a certi-
hed nuLrILIonIsL, us
weII us oerIng Iree
meals
Buildings for the
munugemenL sLu,
providing housing for
more than 80 percent
of the employees
A dedicated social re-
sponsibility team and
innovative initiatives.
Redepne Lohour os
an Asset
Key to enabling such
a forward-looking ap-
proach to maximizing
social performance and
productivity alike is re-
dehnIng Iubour us u com-
petitive asset and to de-
rive productivity returns
that compensate for the
cost of the measures list-
ed above. The methodol-
ogy pioneered by Better
Work, a non-governmen-
tal organization, pro-
vides an illustration of a
practical way forward on
working conditions. Bet-
ter Work runs country
programs that combine
assessment services to
measure compliance with
A worker at a garment factory in Yangon.
S
o
e

Z
e
y
a

T
u
n
/
R
e
u
t
e
r
s
ILO core international la-
bour standards as well as
advisory services to sup-
port practical improve-
ments through workplace
cooperation. Its advisors
work directly with each
factory to:
EsLubIIsI und IucIII-
tate a Performance
Improvement Con-
sultative Commit-
tee (PICC), which
includes representa-
tives of workers and
management
Create and imple-
ment improvement
plans, and recom-
mend training ser-
vices
Increase company
performance on sub-
sequent compliance
assessments through
targeted remediation
activities.
Similar to other such
programs, Better Work
aims to achieve a step
change in working condi-
tions. The training cur-
riculum is thus broad and
includes HR manage-
ment, Occupational Safe-
ty and Health (OSH), ne-
gotiation skills, training
of trainers, supervisory
skills training, prevent-
ing and addressing sex-
ual harassment, as well
as training on workers
rights and responsibili-
ties. The main challenges
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Contd. P z...
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
23
From page zz...
of this approach are its re-
source intensity, and the
struggle to truly embed it
in factories so that good
practice is not abandoned
once there is a change in
management.
A Bluepr i nt for Hu-
man Capi tal Bui ldi ng
i s Ulti mately Needed
Training and changes
in attitudes are impor-
tant, but investments in
human capital are ulti-
mately the key for My-
anmar to deliver on its
potential. The ability to
enter higher value added
production and raise pro-
ductivity hits bottlenecks
without enough techni-
cal skill, and adversarial
labour relations lock all
parties into unproductive
patterns of behaviour and
low productivity in the
ubsence oI sumcIenL up-
to-date management skill.
This undercuts the ability
to pay higher wages.
The shift of the global
apparel industry to the
developing world has his-
torically meant a tremen-
dous loss of knowledge
and skill. Bangladesh, the
regions leading sourc-
ing location, is a prime
example of this situation.
The country does not
have standard training
for most professions, nor
is there dual education.
Bangladesh faces a lack
of skilled workers at both
the machine operator and
mid-management levels,
including technical pro-
fessions, despite numer-
ous private, public and
multi-sector workforce
initiatives. About 150,000
additional skilled work-
ers are needed each year
just to keep pace with
the rapid growth of the
industry. At the operator
level, the skills gap is an
estimated 25 percent. The
entire textile and apparel
complex is estimated to
need ;o,6q LexLIIe LecI-
nologists by 2015, which
represents a gap of 65,010
from the current number
of degree holders in the
industry.
Greater skill at all levels
will be required for Myan-
mar to avoid this seeming
eventuality and actually
deliver on the vision of a
sustainable global apparel
industryfrom selecting
and deploying chemicals
at the beginning of the
pipe to in-country pre-
and post- production ser-
vices such as design and
quality testing. This re-
quires human capital on a
massive scale.
How to Get Star ted
Improving working
conditions and building
human capital may seem
like a daunting task even
though clear and concrete
steps can now be taken
at the factory level. But
recognizing the potential
often requires a mind-
set change. Management
practices play an impor-
tant role in improving
working conditions across
hrms und ImprovemenLs
often require low levels
of capital investment.
EmpIoyers need Lo Iuve
a genuine understanding
of their workers needs,
engaging workers directly
on issues rather than sim-
ply making assumptions
about what workers want.
An added complication is
that the classical worker
lens on issues and priori-
LIes does noL hL perIecLIy
in this industry where 80
percent of the workers are
women who typically have
to balance work with oth-
er important obligations
such as childcare. For ex-
ample, unscheduled over-
time is a top concern for
any caregiver. The good
news is that best practice
examples exist that can
address this and other is-
suesprovided there is
willingness to graduate
from widespread adver-
sarial owner-manager-la-
bor relations, leveraging
everyones ability to con-
tribute to long-term suc-
cess and sustainability.
Besides human capi-
tal, another lever that
is not being pulled suf-
hcIenLIy In LIe IndusLry
is the process of raising
total resource productiv-
ity. Covered in the next
post in this series is how
lean manufacturing and
process redesign has the
potential to reduce use
of chemical inputs by 20
percent, energy by a third
or more, and water by 50
percent. This is good for
boLI prohLs und LIe envI-
ronment.
About the Author :
Dr Maximilian Martin
is the Founder and Glob-
al Managing Director
of Impact Economy. He
also serves as Founding
Faculty in Residence at
Ashoka U and Lecturer
in Social Entrepreneur-
ship at the University of
St. Gallen. He previously
served as founding glob-
al head and managing
director of UBS Philan-
thropy Services, head of
research at the Schwab
Foundation, senior con-
sultant with McKinsey
& Company, instructor
at Harvards Economics
Department, and fellow
at the Center for Pub-
lic Leadership, Harvard
Kennedy School. He holds
an MA in anthropology
from Indiana University,
a MPA from Harvard
University, and a Ph.D.
in economic anthropol-
ogy from the University
of Hamburg.
From page zz...
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Impact Economy. Creating
Sustainable Apparel Value
Chains ..|.._e ~_.,
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
24
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 KKo ong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
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
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
25
Myanmar Summary
LCH Projects Bring Rise in Prices
S
ince plans were announced
to begin the development
of low-cost housing (LCH)
projects, in an attempt to ful-
hII Yungon`s IousIng demunds,
land prices in the areas near to
the projects have spiraled, ac-
cording to sources in the real
estate market.
Last year, work began on
LCH projects at Ayeyarwon and
Yudunur und reuI esLuLe ugenLs
say that land prices, particu-
larly of farm land, has risen in
these areas, leading to a slow in
the market.
In the past, the real estate
market in these places was very
good, wIen oILen beLween hve
and 10 plots of land were being
dealt on a daily basis, but now
work has begun on the [LCH]
projects, less plots are being
sold, said U Myint Thein, a
real estate broker in Dagon Myo
Thit Seikkan township, near to
where the projects are being
built.
U Myint Thein said that real
estate agents as well as land
Phyu Thit Lwin owners ure benehLLIng Irom LIe
rise in prices.
The Ayeyarwaddy housing
projects at Dagon Myo Thit
Harbour township will involve
the construction of 70 buildings
mude up oI qoo upurLmenLs,
wIIIe LIe Yudunur projecLs wIII
be a much larger project with
90 buildings housing 5,000
LCH apartments.
Thiluwu Sees Lund Price Sorge
Workers in a boat at Thilawa SEZ.
L
and prices at the
Thilawa Industrial
Zone, located close
Lo Yungon, Iuve Increused
since work began on the
zone late last year, accord-
ing to real estate agents
operating near the site.
The project broke
ground in December last
year, with work begin-
nIng on LIe hrsL pIuse oI
the multi-million dollar
projecL, on qoo IecLures
of land in Thanlyin town-
ship.
Nowadays, a huge part
of the land being pur-
Kyaw Min chased comes from for-
eign entrepreneurs, said
U Tin Maung Htoo, a real
estate agent operating in
Thanlyin township.
Land price in Thilawa
Industrial Zone has es-
calated about K-30 lakh,
said U Tin Maung Htoo,
real estate agent from
Thanlyin Township.
Since work has begun,
people are beginning to
buy land on those sites,
he said, before adding that
the plots of land are also
attracting interest from
businesspeople based in
Mandalay region.
Real estate sources also
said that land prices are
slowly creeping up in oth-
er townships in the area,
including Phalan and
Thilawa.
Land near to the Thil-
awa project is in high
demand, said Ko Tin
Maung Khine, a clerk
from the General Admin-
istrative Department.
This rise began dur-
ing the Southeast Asian
Games (which took place
in Myanmar in Decem-
ber) and many interna-
tional businesspeople are
buying land in Thilawa at
a high cost, he said.
TIe TIIIuwu SEZ Is be-
ing developed with a Jap-
anese consortium, includ-
ing Mitsubishi, Marubeni
and Sumitomo while the
Myanmar arm of the pro-
ject, Myanmar Thilawa
SEZ HoIdIngs Compuny
(MTSH) involves nine
Myanmar companies.
According to U Set
Aung, chair of the pro-
jects management com-
mILLee, LIe hrsL pIuse oI
the project will be imple-
mented in 2015.
Myanmar Summary
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A housing project in Yangon.
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
26
PROPERTY & REAL ESTATE
A Myanmar youth throws water during the Thingyan Water Festival in Yangon.
Hunsgrohe Helps Iond Wuter
evelopment Progrumme
Shein Thu Aung
H
ansgrohe, the German
sunILury hLLIngs munu-
facturer, has recently
announced a collaboration
with World Vision Organisa-
tion to assist in their Area De-
velopment Programme (ADP)
in Hpa-An, which is located in
Myanmars Kayin State.
The aim of the ADP is to im-
prove the quality of life for
children, by meeting the need
for clean and safe water. For
the programme, Hansgrohe
donated $8,500, which will go
towards the construction of two
wells located near to a school,
the building of a toilet in a pri-
mary school as well providing
support for safe drinking water
resources such as the renova-
tion of wells and paying for san-
itary materials.
We do our part annually in
a small but meaningful way in
giving back to society, and with
LIIs eorL, we uIwuys uIm Lo Im-
prove quality of life by provid-
ing a safe environment to dwell
in, especially for the children,
said Winnie Quek, Regional
Marketing Communications
Manager of Hansgrohe.
The goal of the ADP is not only
to improve quality of life in the
target communities, but also to
enhance their capacity to iden-
tify and address basic needs by
using available resources ap-
propriately, leading to more
sustainable development.
The project is expected to be
completed in September 2018
and World Vision and Hans-
grohe said that they hope that
Hpa An will have achieved self-
reIIunce und mude u sIgnIh-
cant move towards sustainable
change.
Hansgrohe was founded in
1901 in Schiltach, Germany and
has operations in Myanmar.
S
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s
Myanmar Summary
Workers on a construction site in Yangon.
R
e
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t
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s
Property Prices 'Shoold Stubilise' in o1q
Su Su
D
espite a surge in prices
in 2013, and the contin-
ued migration of expats
into Myanmar amid the on-
going changes in the country,
analysts predict that property
prices will stabilise within the
country this year.
Property rental prices can-
not rise much further because
the cost of renting most types
of accommodation reaches its
highest level in 2013, Ma May
Htet Aung, managing director
oI Power ; ReuI EsLuLe LoId MIz-
zima.
One reason prices are expect-
ed to stay constant is that many
of the condominium projects
that began in 2013, and even
late 2012, are expected to be
completed this year, leading to
a potential surplus in properties
that should make rental and
sale prices more reasonable.
Additionally, according to
Property Report, the recently
drafted Condominium Law is
expected to make the acquisi-
tion of properties easier for for-
eigners.
Meanwhile, studies by global
reuI esLuLe hrm CusImun und
WukeheId, LIe ImprovIng gIob-
al outlook is expected to spur
property markets worldwide,
with emerging Asian cities such
as Manila and Jakarta in par-
LIcuIur expecLed Lo benehL.
The growing level of optis-
mism and activity we are seeing
in most regions has its roots in
a belief that the global economy
is set for calmer waters ahead,
said David Hutchings, research
Ieud oI Europe, MIddIe EusL
and Africa for Cushman and
WukheId`s.
This is leading to an increase
in risk appetites, which is mani-
fest in a push to invest across
borders, he added.
The company expects global
property investment to increase
by between 10 and 15 percent,
reucIIng $1 LrIIIIon - up Irom
$978 billion a year previously -
Ior LIe hrsL LIme sInce zoo;. n
LIe AsIu-PucIhc regIon, InvesL-
menL reucIed $qq.z bIIIIon,
up about one percent from a
year before.
The group expects increase of
beLween hve und seven percenL
in emerging economies such as
Manila, Jakarta and Bangalore.
Additionally, Asian investors
from China and Japan are ex-
pected to play a bigger role on
the global property market, ac-
cordIng Lo LIe hrm.
Myanmar Summary
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._~:....~ World Vision ~e
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
27
Myanmar Summary
Telenor Om ciul Purtner Ior BurCump Yungon
T
elenor, one of the two
successful bidders for
international telecoms li-
censes IusL yeur, wus un om cIuI
purLner oI LIe BurCump Yungon
zo1q evenL, wIIcI wus IosLed In
the former capital last week.
The concept of BarCamp
originated in Palo Alto, Califor-
nia, United States in 2005 and
is hosted in over 350 countries
worldwide, with many attend-
ees travelling internationally.
To date, the largest recorded
BurCump Look pIuce In Yungon
in January 2013, when over
6qoo conhrmed uLLendees de-
scended on Yungon - u growLI
from 1,700 attendees at the
hrsL BurCump Yungon evenL In
2010.
BarCamps are free-to-attend,
locally organised unconferenc-
Aye Myat es where participants can pre-
sent about anything they want.
Speakers and presenters can
come from any walk of life, and
organisers are only required to
take care of promotion, logistics
and infrastructure for the event.
Telenor is pleased to be an
om cIuI sponsor oI BurCump
Yungon. NoL onIy Is BurCump
un InuenLIuI guLIerIng Ior
the international technology
and developer community, the
event has also been successful
in bringing together the many
experts and innovators that are
helping to advance Myanmars
digital economy, said Petter
urberg, CIIeI ExecuLIve OI-
hcer, TeIenor Myunmur.
At a time when mobile and
Internet technology is more
wIdeIy uordubIe LIun ever,
Myanmar has the opportunity
to leverage modern mobile
LN Bucks Progrumme to Sopport
Myunmur IT Sector
Shein Thu Aung
T
Ie UnILed NuLIons Eco-
nomic and Social Com-
mission for Asia and the
PucIhc (ESCAP) IusL week un-
nounced a new initiative aimed
at creating jobs and investment
opportunities in Myanmars
growing IT sector.
Speaking during the Second
Myanmar Development Coop-
eration Forum in Nay Pyi Taw,
the initiative was announced by
Noeleen Heyzer, Under-Secre-
Lury GeneruI, ESCAP.
ESCAP Ius worked cIoseIy
with the Myanmar government
to strengthen the capacity of
small and medium enterprises
to help meet these challenges,
especially through the empow-
erment of women and youth.
I am very pleased, therefore,
to announce this joint $1 mil-
lion programme for Myanmars
young entrepreneurs, which
will help the country and its
people leapfrog into the global
knowledge economy, building
cutting-edge skills and com-
petitive in these areas, Heyzer
said at the event.
TIe hrsL pIuse oI LIe pro-
gramme, entitled the Informa-
tion Technology Capacity De-
velopment (ITCD) Programme,
involves a collaboration be-
Lween ESCAP, ndIun consuI-
Luncy hrm ndosys, us weII us
the Indian and Myanmar gov-
ernments and will see 25 IT
engineers and entrepreneurs
travel to India for 12 weeks of
Mobile phones are seen at a roadside stall in Yangon.
R
e
u
t
e
r
s
intensive training in software
development, in the hope that
this will help provide jobs in the
IT sector in Myanmar.
ESCAP und ILs purLners ure
developing specialized training
modules, which are in high de-
mand in the global IT industry,
for more than 100 young engi-
neers and entrepreneurs who
will be up-skilled at the Infosys
training centre. Phase I of the
initiative will be launched next
week in Mysore, India.
This presidential initiative is
an important step towards fur-
ther integrating Myanmar into
the global knowledge econo-
my, said Dr. Heyzer.
Initiatives such as these will
assist Myanmar to more fully
InLegruLe wILI LIe ASEAN Eco-
nomic Community and to move
towards graduation from the
least developed category by
2020, she added.
Myanmar Summary
communications technology as
a central platform and enabler
to its development in many ar-
eas including education, health-
care and banking, he added.
BurCump Yungon Look purL
on ebruury 1 und z uL Yungon`s
MICT Park.
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eq.~ Noeleen Heyzer ~
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
28
IT & TELECOM
Review: New Google Nexos ,
Phil Lavelle
T
he original Nexus 7 en-
chanted and enthralled
- and did so despite some
slight compromises. The fact
that it was so cheap meant it
remained outstanding value for
a long time. The problem is, a
year is a long time in the tab-
let world, and competition is
herce, so LIe new Nexus ; Is jusL
what the doctor ordered.
And then in late July 2013,
came the announcement. A new
Nexus 7 - so good, they named
IL LwIce. (Some Iuve dIeren-
tiated it by adding the year to
the name. For clarity, I'll refer
to the old one as "the original
Nexus 7-inch from now on.)
It's only available in 16GB or
32GB versions, and they are
strictly Wi-Fi only. As with the
previous incarnation, there's
also a cellular version, and the
dIerence LIIs LIme Is LIuL LIe
Nexus ; Is qG TE (vs HDSPA)
compatible.
If ever there was a tablet that
you could just pick up and carry
around with you, chuck easily in
a bag and know it's there when
you need it, then the Nexus 7 is
the one.
Obviously, you'll need a case
or some kind of protection as
it'd be nothing short of criminal
to scratch that beautiful glass
screen, but I assume that most
people will be practicing Safe
Nexus 7 from the get-go.
It would be foolish to just go
into the specs without compar-
ing the Nexus 7 to its predeces-
sor - that's what most people
wIII be expecLIng. Sumce Lo
say, this is one beautiful piece
of equipment. The front is one
sheet of high gloss Gorilla glass,
interrupted only by the minute
presence of a front-facing cam-
eru Ior seIhes und Skypes.
It's thinner and lighter than
beIore (zoo x 11q x 8.;mm und
290g, compared to 198.5 x 120
x 1o.mm und qog). EugIe-
eyed mathematicians will no-
tice there is a slight height
increase, but it's negligible in
prucLIce. TIe TE versIon udds
another 9g.
One thing you will notice is
two lots of speakers - stereo, if
you will. All mod cons here, it
appears. They're on the top and
bottom at the rear but the idea
Is LIuL wIen you wuLcI sLu
in landscape, they'll be at the
sides.
Oddly, they're at the back,
facing away from you, which
seems silly when you consider
that HTC has moved the bar
with the HTC One.
Altogether, this is a solid de-
vice. Where the original Nexus
sometimes felt like a compro-
mise due to the price (issues of
light bleed and creakiness on
the left hand side were com-
mon complaints), this feels like
a premium, well-put-together
piece of kit that should com-
mand more than the measly
amount Google is asking.
Naturally, the glass makes it
less than ideal for outdoor use,
but if you set brightness to max-
imum it should be able to cope.
Colour reproduction is also
far better. A common com-
plaint with the original Nexus 7
was that images tended to look
faded and washed out. Again, I
couldn't grumble too much be-
cause of the price, but it was one
of those things that us geeks
tended to notice and grind our
teeth at. Thankfully, everything
now just appears much warmer
on the Nexus 7 than before.
It's still a world away from the
brightness and vividity of Sam-
sung's displays employed on the
likes of the Note 8 or the Gal-
uxy Sq, buL LIey ure Ioved und
loathed in equal measure. Some
think they look great, while for
oLIers LIe eecL Is unnuLuruI.
EILIer wuy, LIe IucL Is, unIess
you're odd, you won't pick up a
Nexus 7, look at the display and
feel disappointed in the slight-
est.
What you might feel disap-
pointed with, however, is the
sLoruge Issue. You won'L hnd
a Nexus 7 with anything more
than 32GB of space - and re-
member, Google doesn't do ex-
ternal memory these days. In
ILs eorLs Lo pusI us uII onLo LIe
cloud, you're stuck with what
Google deems to be adequate.
And as we've become used to,
that 32GB on the box doesn't
mean you get 32GB to play
with, as the OS takes up a huge
cIunk. You're IeIL wILI jusL
26GB. With the size of some HD
games, plus a couple of movies,
you'll eat that up fairly eas-
ily. Obviously, the 16GB is even
more dire in this regard.
C
a
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r
a
E
g
g
The battery has taken a hit,
at least on paper. It's no longer
qzmAI und now reporLs Ior
duty at 3950mAh. But Google
appears to have some method
in this madness. Aside from
the fact that it makes the Nexus
7 lighter than the original, it
doesn't seem to have much of
an impact.
In fact, I'd say that the battery
here is better than the original
Nexus ; AndroId q.q Is greuL
at battery management. When
this unit goes to sleep, it goes
to sleep. Not a slumber, not a
doze, but a complete conk-out.
And yet, it'll stand to attention
at a second's notice when you
need it again.
Opinions are authors own
and do not necessarily repre-
sent those of Myanmar Busi-
ness Today. Techradar
Myanmar Summary
If ever there was a tablet that you
could just pick up and carry around
with you, chuck easily in a bag and
know its there when you need it, then
the Nexus 7 is the one
Original Nexus 7 ._ ...:
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tablet ~...:.~:. ~_.~.
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.:.._.~~, ~.~ new
Nexus 7 ~..~q.:.._. ,.
tablet ~.,_e 16 GB ..e~
32GB _e.:qq._.. Wi-Fi only
~~~._. ~.~.~._~._~.
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~.._..:...._e._..q._.
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~. . . : Nexus 7 . : ~.~ ~.~
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_.. . _. ..q . ._~: . . q._ . 32GB
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q,_~.....:_~._.
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
29
Myanmar Summary
Win & SPAM Teums op with Jupunese Groop
to Open Cur Showroom
Htet Aung
L
ocal car company Win
& SPAM Company has
teamed up with Japanese
car trading specialists Wood-
stock Company to open a new
sIowroom In Yungon.
The new showroom, located
on Pyay Road in Mayangone
LownsIIp, Is WIn & SPAM`s hILI
Myanmar showroom, and will
display high-end cars, the Japa-
nese group has said.
Ko Kyaw Thura Tun, director
of Win & SPAM told Myanmar
Business Today that Myan-
mars car prices were kept un-
der control by the government
unlike in the past, when even
second-hand cars could fetch
upwards of $25,000.
Since Thein Seins quasi-
civilian government came to
power almost three years ago,
it has made serious reforms in
the auto sector, making it easier
for citizens to import cars from
An employee waits at a showroom for brand new cars in Yangon.
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abroad. Thura Tun said that the
industry is still in its infancy in
Myanmar and will take time to
streamline but that the situa-
tion is better than in the past.
Today, the automobile mar-
keL Is compIeLeIy dIerenL Lo
the past. Customers can pur-
chase cars at a reasonable price
and there are almost no old cars
left, he said, referring to the
governments old for new pol-
icy, which meant that cars that
were over 20 years old could be
replaced more easily with new-
er, more em cIenL modeIs. We
have imported over 18 types of
car, and are displaying between
10 to 20 of each model. We can-
not display more than that due
to space issues, he added.
Currently, the cars in the
showroom are for display only
but the companies hope to have
them available for sale soon.
Woodstock trade a range of
car models, but specialise in
cars from Japan, namely Toyo-
ta, Mitsubishi and Nissan.
Ministry oI Indostry Pluns to Sell Low-Cost Vehicles
Phyu Thit Lwin
T
he Ministry of Industry
will soon begin construc-
tion of low-cost vehicles
which will be available for less
than K6 million ($6,000), a
source from the ministry re-
vealed last week.
The source, who was speaking
under anonymity, said that the
ministry will cooperate with a
local company to manufacture
the cars, which will be mini
saloon models, and that an an-
nouncement will be made this
month regarding the partner
company.
In Myanmars local car mar-
ket, mini saloon cars are in high
demand, but sources say that
due to the government easing
import regulations, the local car
murkeL Ius suered und LIIs
new programme is part of an
aimed to help develop the local
car industry.
For the production of mini
saloons manufacturer in Myan-
mar, car parts were in the past
imported from China for sale in
Myanmar.
Myanmar Summary
_., .:. ~._.. ~ Win & SPAM
~.~ . : ..:.~:~:._..,. .~
e . . . _. . e. ~.| ..: .~: e: ~..
.:.~ .q: ..q, ~~ ~ Woodstock
~.~. .~~.~._.
~..|~.~...- .~..:..~
e.. ' q~., _ ' ,:q~
~ .._.. .. ._ . ~:....~ ~~ ~. .
q~~q~~...._., .~~q, ,_ .
..._e_....,._ ~:.e:~e:
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e.~ ~:..|..qq q, ....: q:
~ ~. , .~ . ._~: . e. ~.| ~:.
.|... .~.~_.. ....:q:~
.e~.:.__e.._~:. Win &
SPAM ~ . ~ . .|, ~ ~:~. ._e. .
~.~:.q,.~ ._.:_~:..._.
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~ ..~...:.: ~q~~
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. qq.q,~~~ ~._._~.,,
_~_ .e . q e: ~ e: .e:.
.~ .q ...:~ ,_ ..|..:~: .~ q
~e . ~.... ~ _~_ .e . q .~:
~:..~.:..:~~~~ ....~~
~..:..:..|.~. ~,.~:~ .,
~ . ~ , .~ ~ . ~ ~: _., .:. . :
~. _. ,:._ _~ .~:... .~ ~ .:
.e. ~. ~,.~:~ Showroom
.~.:.q ~:..~~ _.,.~.~
.: _.:.~e. ~:.~..~.:...| .
~ ...~:..:~.~: ~...:
.|. ~...~ ~~ ...~ ~.. ~
~.,_. .:e.:..:.|. ~:..~
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._ ~ . ~ ~. .~ .e.e: ~|q.~~ .
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~....:. q.:.._e _._~.
~,_~._:,. ~:~,q.~..~ ._.:
._.
_.,.:.,..,.~:..:. ~..q:
~ e.~ ~,~.. ..:.~:
e:~.~~...:. ~.._ _._
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~..:.~:e:.:.~:. ...~~
.,q:_.,._qq.q,~~~ ~.
_.~~: ~...q:..q, ..
..:q~.,_.._e.._~:. .~.
~~. .q:..._.. e.~.| ~.
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~:..:.~:. e. ~~, ...~~.
~...q:..q, ....:q~
.~q._~:. .q._.
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February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
30
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
31
U Myint Swe, Chief Minister of Yangon Region Government, speaking at
the GE Oil & Gas and SMART Technical Services partnership agreement
signing ceremony held on January 27 at Chatrium Hotel, Yangon. GE
U Kyaw Kyaw Hlaing, Chairman of the SMART Group of Companies
speaks at the event. GE
Stephane Leyo (lef), GE Asia Pacifc Marketing Director shakes hands
with Yadana S Hlaing, Managing Director of SMART Technical Services.
GE
Stphane Leyo (lef), Kovit Kantapasara, President and CEO for GE Tai-
land, Laos & Myanmar, U Myint Swe and U Kyaw Kyaw Hlaing, Chair-
man, SMART Group. GE
GE Oil & Gas Signs Agreement with SMART Technical Services
U Tun Hla Aung, deputy secretary of the Myanmar Jewels and Gems
Entrepreneurs Association. Phyu Tit Lwin
Michael Ahaniss, director of Asia Connect company, addresses the
crowd. Phyu Tit Lwin
Michael Ahaniss, director of Asia Connect company, makes a speech.
Phyu Tit Lwin
Shae Tot Programme Local Partner
Initiative Opening Ceremony
Delegates shake hands at the event. MBT
Te press conference is hosted overlooking downtown Yangon. MBT
An agreement is signed. MBT
Delegates shake hands. MBT
A presentation is made at the event. Phyu Tit Lwin A delegate displays gems to media. Phyu Tit Lwin
Gems are presented to the audience. Phyu Tit Lwin
Press Conference for the 2nd Myanmar International Gems & Jewellery Expo 2014
February 6-12, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
Former Serbia international goalkeeper Raddy Avramovic looks set to become the new Myanmar Head Coach.
F
ile
s
Raddy Set for Myanmar Top Job
M
yanmar are set to
pip Southeast Asian
rivals, the Philippines,
in the race to sign Radojko
Raddy Avramovic as head
coach, recent media reports
have revealed.
According to the Singaporean
version of Goal.com, U Zaw
Zaw, president of the Myan-
mar Football Federation(MFF)
revealed that Myanmar, who
were knocked out of the South-
east Asian Games group stages
following a narrow defeat to
I ndonesia, are in advanced
discussions with the former
Serbian international.
We are in detailed consid-
eration over the contract. 75
percent [of discussions] are
already completed, but we will
Aye Myat reIeuse un om cIuI unnounce-
ment after the contract sign-
ing, the website cited U Zaw
Zaw as saying.
Former coach, Korean Park
Sung Hwu, wus hred Irom LIe
role after the team was elimi-
nated in the group stages of the
recent Southeast Asian Games.
Following impressive victories
against Timor Leste and Cam-
bodia and a hard-fought draw
against Thailand, Myanmar
only needed a draw against
ndonesIu In LIe hnuI group
match to qualify for the compe-
titions Semi Finals.
Myanmar lost the match 1-0,
knocking them out of the com-
petition, and it was revealed
after the match that Park was
unaware of the head-to-head
rule which meant that I ndone-
sIu quuIIhed uIeud oI Myun-
mar, despite the hosts having
u beLLer gouI dIerence record
than their rivals.
Avramovic made his name
durIng u hve-yeur sLInL In Eng-
land, where he made over 150
appearances for Notts County.
He has previously managed
the Kuwait and Singapore
national teams, the latter of
which he managed for 10 years,
IeudIng LIem Lo LIe ASEAN
Football Championship on
three occasions, most recently
in 2012.
Myanmar footballs golden
era came during the 1960s and
early 1970s when the country
won hve consecuLIve SouLIeusL
Asian Games gold medals from
1q6 Lo 1q;1, und quuIIhed
for the 1972 Olympic Games
hosted in Munich.
Side IHect Looking
Ior Pledge to
Rock SXSW
Su Su
A
nyone wIo Ius rocked ouL Lo SIde EecL In u Yungon bur
wouldnt begrudge other music lovers around the world be-
ing exposed to the groups lively brand of rock.
TIe Yungon-bused bund, wIo were Iormed In zooq, Iuve been
invited to perform at this years South by Southwest (SXSW),
which will be hosted in Austin, Texas in March, but one thing cur-
rently stands in their way. Money.
I n an attempt to put together the funds to perform at a concert
alongside bands such as The Kooks, Angus and J ulia Stone as well
us CunudIun Iegend NeII Young, LIe bund Iuve seL up u 'PIedge`
puge (ILLp:JJwww.pIedgemusIc.comJprojecLsJsIdeeecL) uImed uL
encouraging music lovers to contribute to their trip, giving some
originally-thought gifts in return.
$32 will get the pledger a signed CD, $250 a cooked lunch by
LIe bund In Yungon und $1,ooo u personuIIsed song, wILI LIe Lop
pledge proposal being $10,000 for a personalised tour of Myan-
mar given by the groups members.
SXSW began life as a music event in 1987, and has since grown
Lo IncIude hIm und InLerucLIve musIcuIs uIongsIde LIe musIcuI
component.
Previous performers at SXSW include The Flaming Lips, Kanye
West and Foo Fighters.
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