July 24-30, 2014

Myanmar Business Today

mmbiztoday.com
mmbiztoday.com July 24-30, 2014| Vol 2, Issue 29 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Inside MBT
Education Reform: Lessons
for the Future P-21
Miners Face Permit Delays As
Parliament Debates New Bill
Phyo Thu
M
yanmars min-
ing enterprises
are facing delays
in receiving permits af-
ter a newly proposed bill
aimed at relaxing the cen-
tral governments exclusive
control over mining opera-
tions in the country stirred
debate in the parliament.
The Mineral and Resource
Committee of the Upper
House recently drafted a
new mining bill and submit-
ted it to the Lower House.
The Bill Committee of the
Lower House said a provi-
sion in the bill that allows
joint mining operations
between the central and
regional governments goes
against the countrys consti-
tution.
We need to discuss fur-
ther as [the new bill] con-
tradicts the constitution,
told Dr Soe Moe Aung, a
member of the Bill Com-
mittee.
Dr Soe Moe Aung said
the newly proposed bill
must be closely analysed
to ensure regional gov-
ernment mining doesnt
undercut the countrys
constitutional framework.
State and regional govern-
ments will discuss the pro-
posal in their respective
parliaments to resolve the
dispute, he said.
A mine operator from
Kayah state told Myan-
mar Business Today that
mInIng hrms` permIL re-
quests will be delayed by
the governments revision
process.
The delay to get min-
Ing heId permILs wIII uecL
the development of special
areas, he said, referring
to Myanmars underdevel-
oped und conIcL-rIdden
states such as Kachin and
Kayah, which are rich in
mineral resources.
In June, Myanmar was
accepted as a candidate
country to the Extractive
Industries Transparency
Initiative (EITI) which
requires the union gov-
ernment to disclose the
hnuncIuI sLuLemenLs und
agreements between the
state and mining compa-
nies to the public.
Ko Win Aung from the
multi-stake holder group
that is coordinating My-
anmars accession into
the EITI, an international
standard that ensures
transparency around
countries oil, gas and
mineral resources, said
his group doesnt accept
constitutional restrictions
preventing regional gov-
ernments from operating
mInIng heIds In LIeIr re-
spective states.
These restrictions
should not exist, Ko
Win Aung told Myanmar
Business Today.
The EITI requires My-
anmar government to
produce social impact as-
sessment reports and en-
sure that any mining bill
passed takes into account
all industry stakeholders.
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Government Inspects
Manufacturing Businesses for
Licences P-6
Labour Requirements Growing
Throughout Myanmar P-7
A woman digs for sulphur sand near a Chinese copper mining dump in Sarlingyi township at Sagaing
division.
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July 24-30, 2014
Myanmar Business Today
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2
LOCAL BIZ
Business News in Brief
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Board of Editors
Editor-in-Chief - Sherpa Hossainy
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Email - linnkhant18@gmail.com
Ph - 09 40 157 9090
Regional Editor - Tom Stayner
International Editor - David Ross
Reporters & Contributors
Htun Htun Minn, May Soe San, Kyaw Min, Wai Linn Kyaw,
Aye Myat, Aung Phyo, Zwe Wai, Phyo Thu, David Mayes,
Sherpa Hossainy, Aundrea Montao,
Tom Stayner, David Ross, Jacob Goldberg
Art & Design
Zarni Min Naing (Circle)
Email - zarni.circle@gmail.com
Ko Naing
Email - nzlinn.13@gmail.com
DTP
May Su Hlaing
Translators
Aye Chan Wynn, Wai Linn Kyaw,
Phyu Maung
Advertising
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Zin Wai Oo, Nay Lin Htike
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Myanma Ai rways si gns for si x ATR 72s
Myunmu AIrwuys Ius conhrmed ILs InLeresL In ATR;z-
600s, by placing orders for six of the type and options
on six more at the Farnborough air show last week.
The state-owned carrier, which is to branded Myan-
mar National Airlines soon, will start taking delivery of
the aircraft in 2015. Deliveries will run until 2017. The
airline aims to replace its Fokker F28 regional jet and
Xian Aircraft MA60 turboprop with the ATRs, while it
already operates three ATR72s.
Myanmar phar ma sector expected to gr ow 10-
15pc
Myanmars pharmaceutical industry is expected to
grow 10-15 percent a year due to higher government
spending on healthcare, the Myanmar Pharmaceuti-
cal and Medical Equipment Entrepreneurs Association
said at an expo. Myanmars pharmaceuticals market is
now estimated to be worth about $100 million to $120
million, but the industry imports more than 90 percent
of the products. Indian suppliers enjoy the largest share
at 35.4 percent, followed by Thailand, China, Pakistan,
Bangladesh, South Korea and Indonesia. About 60 per-
cent of all products are sold in Yangon and Mandalay.
There are only 10 domestic manufacturers.
South Kor ean owner sued for closi ng factor y
wi thout compensati on
TIe ubour MInIsLry Ius hIed u IeguI suIL uguInsL LIe
South Korean owner of Master Sports Shoe Factory,
in Hlaing Tharyar Industrial Zone outside Yangon, for
closing it without paying compensation to the workers,
local media reported. Over 800 workers staged a pro-
test march in front of the South Korean Embassy last
TIursduy sInce LIeIr owner Iud ed wILIouL puyIng
compensation.
J apan eyes Myanmar for r aw r ubber
Japan is to provide state of the art technology to process
ruw rubber und boosL IocuI producLIon In u bId Lo hnd u
new supply for its tyre manufacturing industry. According
to an agreement between the Myanmar Rubber Planters
and Producers Association and Japanese manufacturers,
Japan will provide technology to produce high-quality raw
rubber in Yangon, Bago and Mon regions in return for ex-
ports. Japanese tyre production needs between 700,000
and 800,000 tonnes of rubber a year.
Shwedagon Pagoda Vi si tor Number Goes Up
14pc i n Q1
The number of foreign tourists visiting Yangons
SIwedugon Pugodu Ius reucIed zq,86 In LIe hrsL
half of 2014, up 30,000 from the same period last year,
according to the pagodas Board of Trustees. During
the six-month period, visitors in January topped with
50,398, followed by February with 60,691 and March
with 49,599. Thai visitors accounted for the most. The
entrance fee for foreign visitors was $8, taking the total
earning from the tourists to $1.96 million during the
period.
MAPCO to sell K5b wor th of shar es
Myanma Agro-business Public Co (MAPCO) will sell
K5 billion worth of shares over the counter by end-July,
local media reported managing director Ye Min Aung
of MAPCO as saying. Each Myanmar citizen can buy
shares worth up to K1 billion at K10,800 per each, he
said. MAPCO, which is expected to be listed when the
stock market begins operations in Yangon next year,
sold about one billion worth of shares last year.
Chi na r emai ns top FDI contr i butor
China continues to be the leading foreign investor
in Myanmar with more than $14 billion of cumulative
investment as of the end of June, according to the Di-
rectorate of Investment and Company Administration
(DICA). Foreign companies have so far invested more
than $46.71 billion in 12 sectors, including oil and gas,
manufacturing, mining, hotels and tourism, transport
und IogIsLIcs, reuI esLuLe, IIvesLock und hsIerIes, ugrI-
culture, construction and services. Energy sector has
received the most foreign investment, about 41 percent
of the total, DICA data shows. Thailand is the second
largest foreign investor country.
Myanmar Summary
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
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July 24-30, 2014
Myanmar Business Today
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LOCAL BIZ
4
Myanmar Summary
Myanmar Summary
YCDC to Ban Street Vendors from September
Htun Htun Minn
T
he Yangon City De-
velopment Commit-
tee (YCDC) has an-
nounced that beginning in
September street vendors
will be banned in 33 town-
ships that make up YCDCs
territory.
Currently, street vendors
are allowed to setup stalls
on the pavement between
the hours of 3-9 pm.
YCDC said street vendors
and stalls are causing dis-
ruptions to passing pedes-
trians, contributing to traf-
hc jums und IrresponsIbIe
waste disposals, which in
turn deteriorates hygiene
in the surrounding area
and blocks the sewage sys-
tem.
We are planning to ar-
range a space for vendors
to sell in the downtown
area. We will clear them
from the streets for the
convenience of pedestri-
uns, suId u senIor om cIuI
from the YCDC markets
division.
The ban has been planned
with good intentions; how-
ever, it will hurt their live-
lihoods and income, street
vendors said.
It is not easy to allocate
selling spaces to all the
street vendors in Yangon.
If selling on the streets is
completely banned, we will
dehnILeIy sLruggIe Lo muke
ends meet, a vendor who
runs a stall on Anawrahta
road, said.
However, downtown res-
idents say there are both
advantages and disadvan-
tages to having vendors on
the street.
They sell goods and
foods with reasonable pric-
es at convenient places, but
they also disturb the pas-
serby. Sometimes walking
space is so blocked that
only one person can pass
through at a time, a resi-
dent of downtown Yangon
said.
There has been a plan to
open a night market for
street vendors near Maha-
bandoola Park in the past,
but this has yet to be real-
ised.
Currently, there are over
70,000 street vendors,
with over 300,000 de-
pendent family members,
making a living on the
streets of Yangon, accord-
ing to surveys.
The high number of
street vendors is partially
attributed to the lack of
job opportunities avail-
able, leaving the poor with
few options but to choose
convenient roadside sell-
ing of goods and foods as
employment.
There are also street
vendors in other countries.
Neighbouring Thailand is
even famous for roadside
and night markets, which
are popular tourist at-
tractions. But the vendors
there are about health and
hygiene and dont irre-
sponsibly dispose of their
waste.
Here YCDC workers
face the big task of clearing
heaps of waste left by the
vendors, said a city pro-
ject planner.
Starting in September,
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vendors caught selling on
the streets or pavements
will face charges and see
LIeIr goods conhscuLed,
suId un om cIuI Irom YCDC.
Ministry Unveils Final Draft of Advertisement Policies
Aung Phyo
M
yanmars Infor-
mation Ministry
has unveiled the
hnuI druIL oI udverLIse-
ment policies for socially
responsible media, and is
inviting advice and sug-
gestions from the public,
according to a statement
from the ministry.
The advertisement poli-
cies comprise 14 sectors,
including politics, reli-
gion, culture, education,
tobacco and alcohol, ille-
gal gambling and lottery,
non-prohL orgunIsuLIons,
children, private free-
dom, medIcInes, hnuncIuI
services, advertisement of
products, property rights
and environmental con-
servation.
The policies are aimed
at promoting peoples
trust in socially respon-
sible media, reducing
complaints against ad-
vertisements in socially
responsible media and
disputes and encourag-
ing a market- oriented
economic system, said the
statement.
The statement called for
respect for private free-
dom and current laws.
The rules for advertise-
ment policies will take ef-
fect from April 2015, the
statement added.
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Rice dumplings (zongzi) are seen at a roadside stall in Chinatown of Yangon.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
Myanmar Summary
Air Mandalay to Buy Up to Ten Mitsubishi Regional Jets
May Soe San
Aye Myat
A
ir Mandalay has
signed an aircraft
purchase agree-
ment with Mitsubishi Air-
craft for an order of six
MRJ90s with a purchase
option for an additional
four, the local private car-
rier said.
Deliveries of the Mit-
T
wo private banks in
Myanmar Kan-
bawza Bank and
Cooperative Bank will
raise their interest rates
Ior suvIng und hxed de-
posits starting August 1.
The current interest rate
of 8 percent for saving
deposits will increase to
8.25 percent, while that
Ior one-monLI hxed de-
posit will rise from 8 per-
cent to 9 percent.
TIe ruLes Ior hxed de-
posits of three, six and
nine months will also rise
by 0.75 percent, 0.5 per-
cent and 0.25 percent re-
spectively.
However, the interest
ruLe Ior hxed deposIL oI 1z
months will remain un-
changed at the previous
rate of 10 percent.
It is expected that all
other private banks in the
country will follow suit
soon, state-run media an-
nounced.
subishi Regional Jet
(MRJ), Japans next-gen-
eration regional aircraft,
are scheduled to start in
2018.
In the meantime, the
airline will be expanding
ILs eeL wILI sIx Embruer
Regional Jets (ERJ) from
Brazil, it said in an an-
nouncement at the start of
the annual Farnborough
International Air Show in
Hampshire, England.
Yangon-based Air Man-
dalay, currently operates
turboprop aircraft and is
seeking to expand and
enIunce ILs eeL`s cupu-
bility through the intro-
duction of regional jets,
it said.
We are dedicated to fa-
cilitating transportation
in Myanmar and enhanc-
ing the travel experience
of our loyal customers,
said Air Mandalay CEO
Gary J Villiard.
Our plan is to expand
our route structure in
order to service our ex-
panding customer base
as the countrys air travel
requirements continue to
show record growth.
This agreement comes
as local carriers try to
serve both the local popu-
lation of and visitors to
Myanmar, as the coun-
try transitions to an in-
ternational standard air
transport structure.
The addition of the MRJ
wIII provIde benehLs Lo
drive the airlines expect-
ed growth in the region,
Air Mandalay said.
Villiard said the com-
pany chose the MRJ for
its advanced design char-
acteristics, its promised
customer support backed
by the Mitsubishi parent
company and the reliabil-
ity and economy of the
Pratt & Whitney Geared
Turbofan Engine (GTF).
By 2032, Mitsubishi Air-
craft anticipates demand
of about 1,000 airplanes
in the expanding Asian
regional jet market. The
agreement is expected to
enable Mitsubishi Air-
craft to accelerate sales
eorLs ucross LIe regIon.
Thus far, 325 MRJ are
on order but Air Manda-
Iuy Is LIe hrsL AsIun uIr-
line outside of Japan to
select the aircraft.
Founded in 1994, the
airline currently serves 15
domestic destinations.
Air Mandalay ~.,_e
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- CEO Gary J Villiard ~
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An Air Mandalay aircraft at Thandwe Airport in Rakhine state.
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Private Banks in
Myanmar to Raise
Interest Rate
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
Myanmar Summary
Government Inspects Manufacturing
Businesses for Licences
May Soe San
A
uthorities are in-
specting manufac-
turing businesses
to uncover unregistered
companies as a spread of
unregistered small and
medium businesses (SME)
throughout Myanmar are
thought to be undercutting
local industrial production.
The Ministry of Indus-
trys Industrial Supervi-
sion units director general
U Thein Swe said private
industrial businesses are
wrong to think registering
companies is a time con-
suming process without
commercIuI benehLs.
There are advantages
to being registered such
as being eligible for loans
and able to employ for-
eigners. We also share
technologies with regis-
tered businesses, he said.
SMEs are currently
regulated by Myanmars
1990 private industrial
law, while an SME Bill
is being discussed at the
parliament.
U Thein Swe said the
governmenL cun hne busI-
nesses found to be oper-
ating without a licence
under these regulations.
About 50 to 60 unregis-
tered companies are now
getting registered every
month, he added.
The law invites busi-
nesses to register. If they
dont register we cannot
accurately calculate the
GDP of the country, he
said. GDP (Gross Domes-
tic Product) is the mar-
keL vuIue oI uII omcIuIIy
recognIsed hnuI goods
and services produced in
a country. The statistic
plays a key role the gov-
ernments monitoring of
economic progress and
the implementation of de-
velopment reforms.
But the governments
call for businesses to reg-
ister isnt solely based on
their own administrative
interests.
U Thein Swe said un-
registered SMEs face
increased land owner-
ship and fraud disputes,
which disadvantage local
commercial production
throughout the domestic
sector.
Registering businesses
allows safeguard meas-
ures to be put in place,
protecting trade and
manufacturing licences,
and protects weaker in-
dustrial sectors from ex-
cess foreign investment
entering the market, said
a director of Shwe Thun-
dayi cosmetic company.
By making businesses
register, the government is
attempting to unify indus-
LrIuI eorLs und Increuse
national productivity. The
Ministry of Industry was
restructured in December
2011 by integrating Minis-
try of Industry no.1 and 2.
The ministry is also en-
gaging in founding new
factories and training
facilities to improve or
enable the production of
transport vehicles, con-
struction and agricultural
machineries, and rubber-
based and high tech prod-
ucLs, omcIuIs suId.
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A woman works at a manufacturing factory in an industrial zone in Yangon.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
7
Myanmar Summary
Myanmar Summary
LOCAL BIZ
Myanma Railways to Invite
Tender to Build Dry Ports
May Soe San
S
tate-run Myanma
Railways will invite
local and interna-
tional businesses in Au-
gust for an open tender to
construct dry ports for the
development of the local
logistics sector.
The project is expected
Lo be hnIsIed In LIe cur-
renL zo1q-1 hscuI yeur,
which will ensure access
to dry ports and contain-
erisation for rail trans-
port, boosting connectiv-
ity for industries engaged
in import-export.
We plan to invite ten-
ders from local and in-
ternational business in
August with construction
set to start in September,
told U Aung Myo Myint,
deputy general manager
of cargo for Myanma Rail-
ways.
Construction for dry
ports are expected to be
completed by May 2015,
which will be followed by
a planned upgrade to the
railroad infrastructure
in June of next year that
will help accommodate
container trains that run
from inland depots to sea-
ports, as well as other in-
dustrial zones.
The short-term schemes
aim to develop dry ports
in Yangon and Mandalay,
Myanmars major com-
mercial cities.
The project is drafted to
include six sites that in-
clude Kwae Ma, Ywarth-
argyi, Tanyingone, Myo-
haung, Myitnge, Palate
stations. The potential
project sites will be as-
sessed before implemen-
tation with only two sites
so Iur beIng conhrmed,
Ywarthargyi in Yangon
and Myitnge in Mandalay.
Labour Requirements Growing Throughout Myanmar
Phyo Thu
E
xperts have re-
leased a report
conhrmIng Myun-
mar is facing a shortage
of trained and capable
labour in a range of in-
dustrial sectors that could
threaten the nations de-
velopment prospects.
The countrys demand
for skilled workers is ex-
pected to reach a level
equal to almost half the
population by 2015.
Myanmar Arts and Sci-
ence Academics Asso-
ciation Vice President Dr
Thet Lwin and Yangon
University of Economics
Vice Rector Dr Tun Aung
prepared the report fore-
casting Myanmars future
employment needs.
The document estimat-
ed Myanmar will need 32
million more workers in
job areas including agri-
culture, forestry, energy,
mining, industry, electri-
cal, construction, social,
management and trading
by next year.
Yangon University of
Economics Rector Dr Tin
Win said the report used
mathematical calcula-
tions to determine where
the skilled worker short-
ages were most prominent
throughout Myanmar.
If Myanmar is unable
to increase education and
training to help citizens
improve their employ-
ability then the countrys
labour needs could reach
over 34.6 million by 2020,
while demand for skilled
workers stood at 29.7 mil-
lion people in 2010, ac-
cording to the report.
The report said the
countrys agriculture sec-
tor will have the highest
labour requirement while
the industrial and trad-
ing sectors will also have
employment demands of
over 3 million labourers.
Dr Thet Lwin and Dr
Tun Aung, the reports
authors, said the agricul-
ture, industrial engineer-
ing and information and
media industries should
be prioritised for local
employment expansion.
Last month the IMF
forecast it expects Myan-
mars economic growth to
rise to a rate of 8.5 per-
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cent by March 2015. The
report suggests increased
shortages in skilled la-
bour could stall the coun-
trys economic progress.
Myanmar is facing skills
shortages in many sectors
central to the countrys
infrastructure develop-
ment. The civil adminis-
tration and service sectors
are expected to require
2 million further skilled
workers by next year.
Estimates also forecast
employment demands for
the tourism industry to
reach 930,000 workers in
2015. Myanmars tourism
industry is expected to
contribute over $1 billion
in 2014, increased from
$926 million in 2013 and
$534 million in 2012.
However, a lack of
trained and capable la-
bour could undercut fur-
ther revenue increases in
the tourism industry.
The experts said skill
shortages in Myanmars
foreign language and
medical and healthcare
services were also likely
to become prominent.
A worker stands on a bridge in Yangon.
U
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
Myanmar Summary
Banking Conference Focuses on
Local Banks HR, Capacity Dearth
Aundrea Montao
T
he 2
nd
annual My-
anmar Banking and
Business Develop-
ment Conference, hosted
by Sphere Conferences
and Republic of the Union
of Myanmar Federation of
Chambers of Commerce
and Industry, was held on
July 15 17 in Yangon at
the Sule Shangri-La Ho-
tel.
Day one of the confer-
ence focused on the stra-
tegic aspects and the fu-
ture of the banking and
hnunce secLor In Myun-
mar as it moves towards
increased global integra-
tion, while day two em-
phasised the use of tech-
nology.
Dr Aung Thura, CEO of
Thura Swiss, moderated a
panel discussing the im-
pact of impending foreign
bank licences. During the
panel discussion, Dr Sein
Maung, chairman of First
Private Bank, shared his
surprise that the govern-
ment was so quickly will-
ing to allow foreign banks
to operate in Myanmar
saying that while the gov-
ernment has good inten-
tions, the decision is a bit
premature.
Why rush? The legal
base is not ready yet. Ad-
ditionally, there is a big
gap between capitalisa-
tion, skills and technol-
ogy.
We are in the process
of building a house, in the
process of building insti-
tutions. We should not
rush this process.
My advice to move
step-by-step in a prag-
matic fashion, Dr Sein
Maung told the panel.
Kittiya Todhanakasem,
a senior executive vice
president and managing
director at Krung Thai
Bank, acknowledged Dr
Sein Maungs concerns
and added that in an over-
seas market the market
leader must be domestic.
She further emphasised
that Thai banks will focus
on hnuncIng und promoL-
ing trade of Thai corpo-
rations, which is a likely
scenario for any foreign
bank granted one of the
coveted foreign banking
licences.
Kim Chawsu Gyi, depu-
ty managing director and
head of transformation
at KBZ Bank, added that
foreign banks are vital to
hnuncIng Iuge InIrusLruc-
ture projects, which local
banks cannot currently
accommodate with their
limited capitalisation.
Also discussed at the
conference is the reality
of the immense challeng-
es Myunmur`s hnuncIuI
system faces in terms of
the lack of skilled work-
ers and technological im-
provements.
Kim Chawsu Gyi, who
is responsible for the de-
velopment of human re-
source capacity for Myan-
mars largest bank KBZ,
said, We must recruit
individuals with the right
skills and talent, but it
is equally important for
these individuals to learn
soft skills such as team-
work, how to provide ex-
cellent customer service,
and how to work in a pro-
IessIonuI omce envIron-
ment.
Dr Sein Maung acknowl-
edged the critical need to
upgrade the technology of
Myanmars banks. How-
ever, upgrading technol-
ogy is not as easy of a task
as many might think.
Upgrading technol-
ogy is very expensive. On
top of that, lots of ven-
dors come to sell software
without the proper sales
support and local support
sLu, Dr SeIn Muung
said.
He conhrmed LIe need
for intensive and quick
action in addressing hu-
mun resources dehcIen-
cies, suggesting advance-
ments in basic education,
unIversILy und cerLIhcuLe
courses should be empha-
sised.
U Set Aung, deputy gov-
ernor of the Central Bank,
spoke about the countrys
commercial and business
climate and touted Myan-
mars potential for busi-
ness development and
trade saying, The Minis-
try of Commerce has fo-
cused on four main areas
that include trade promo-
tion, facilitation, liberali-
sation, and education.
As a result, Myanmars
Lrude voIume sIgnIhcunLIy
increased during the last
three years.
According to data pre-
sented at the conference,
Myanmars trade volume
has increased from $15.27
bIIIIon In LIe zo1o-11 hs-
cal year, to an expected
$24.87 million in the
zo1-1q hscuI yeur.
U Set Aung said Myan-
mars current prospects
for growth lie in the coun-
trys many untapped
natural and human re-
sources, its strategic loca-
tion and ability to become
a major regional trad-
ing hub, and increasing
south-south and global
trading opportunities.
Attendees at a session of the Myanmar Bankign and Business Develelopment Conference.
Microeconomic Objectives Surpass Target;
Trude ecit $.oS Billion in o1-1q H
May Soe San
M
yanmar re-
corded a trade
dehcIL oI Kz.o8
trillion ($2.08 billion) in
the second half of 2013-
1q hscuI yeur, Duw e e
Thein, deputy minister
for national planning and
economic development,
told a recent parliament
session.
Exports earned K5.93
trillion ($5.93 billion) and
import volume reached
K8.01 trillion ($8.01 bil-
lion) during this period,
she said while presenting
a report on National Eco-
nomic Plan, released by
the Ministry of National
Planning and Economic
Development.
The report outlined the
governments progress
in the second half of the
2013-14FY.
uIhIImenL oI mIcro-
economic objectives sur-
passed the target and
reached 125 percent of
the planned goals, an
improvement in perfor-
mance of 7.5 percent com-
pared to the same period
last year, the report said.
According to the report,
agriculture accounted for
31.9 percent of the total
economy, compared with
the previous estimation
of 29.9 percent. The in-
dustrial sector accounted
for 32.7 percent, which
is lower than the sectors
estimation of 33.8 per-
cent. The service sector
accounted for 35.4 per-
cent which was also lower
that its estimated 36.3
percent.
The period coincided
with the harvest season,
which produced over
K9.17 trillion ($9.17 bil-
lion) in the agriculture
sector.
A total of 35 local enter-
prises were approved un-
der the Myanmar Nation-
al Investment Law, which
amounted to an invest-
ment volume of almost K1
trillion ($1 billion), while
68 foreign companies
were approved under the
2012 Foreign Investment
Law accounting for K2.37
trillion ($2.37 billion) in
investment, according to
the report.
TIe hnuncIuI servIces
sector during the second
IuII oI LIe zo1-1q hscuI
year saw the expanding
of bank branches, which
increased by 210 to 695,
while 470 private money
exchange counters have
been approved during the
period.
The report said 82.5 per-
cent of the planned objec-
tives have been complet-
ed in the energy sector,
while 99.5 percent were
completed in the mining
and mineral sector and 95
percent in electric sector
during the period.
The government has
increased electricity sup-
ply in many states and
regions thus reducing the
private usage of diesel to
run generators for house-
hold or commercial pur-
poses.
Myanmar Summary
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
9
Myanmar Summary
Scotch Whisky Gets Special Legal
Protection in Myanmar
Phyo Thu
S
cotch Whisky has
been granted better
protection by My-
anmar authorities as a
collective trademark in a
move that is expected to
help protect Scotlands
national drink against
fakes in the growing
Southeast Asian market.
Scotch Whisky exports
to Myanmar jumped 65
percent to 2 million last
year from 888,734 in
2012, according to the
Scotch Whisky Associa-
tion.
The move will provide
added protection to both
consumers and the indus-
try, the association said.
Alan Park, Scotch Whis-
ky Association legal ad-
viser, said: This will al-
low us to protect Scotch
Whisky against products
illegally being sold or
pussed o us ScoLcI.
Products suspected
of misleading consum-
ers and damaging the le-
gitimate trade are already
under investigation and
may become the subject
of legal action using the
protection now given to
Scotch Whisky in Burma.
The changes mirror
those introduced in Aus-
tralia earlier this year, a
country which was said to
have a serious problem
with fakes.
The trademark gives
similar protection to
Scotch in Burma already
enjoyed by products such
as Parma ham and Cham-
pagne which are subject to
a geographic indicator (GI)
- u proLecLIon oered Lo
a range of geographically
unique products.
British Ambassador to
Myanmar Andrew Pat-
rick said: Scotch Whisky
is recognised worldwide
as a distinctive and high
quality British product
and I am delighted that
the Burmese authorities
have taken steps to recog-
nise and protect this.
A robust legal frame-
work is of great impor-
tance to foreign investors
in any market and the
British Embassy is sup-
portive of the Burmese
GovernmenL`s eorLs Lo
develop this.
In 2012, Chelsea FC
agreed a two-year spon-
sorship deal with local
whisky Grand Royal
Myanmars best-selling
brand which boasts an
unnamed Scottish master
blender on its label, but,
in accordance with Scotch
whisky rules, does not
claim to be Scotch.
Earlier this month, a
German scientist living
in Scotland announced a
new technique to tackle
counterfeit Scotch whisky
by determining whether
the water used to make it
comes from Scotland.
TIe SpIrIL DrInks VerIh-
cation Scheme, launched
earlier this year, ensures
that every part of the
Scotch whisky supply
chain is mapped by the
industry, registered with
the UK government and
inspected to ensure it
complies fully with all the
rules on the production of
Scotch.
AII hrms InvoIved In
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the production of Scotch
whisky must register with
Her Majestys Revenue &
Customs by listing their
sites within and out-
side Scotland, including
distilleries, maturation
facilities, blending and
bottling plants. Foreign
bottlers will also be sub-
ject to controls.
In addition, the spirit is
already protected through
the European Union GI
scheme, meaning it can
only be produced in Scot-
land according to UK
rules.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Myanmar Summary
Myanmar Summary
Myanmars Legal Framework and Immigration
Stefanie Siegfried
I
n this weeks case
study, our client,
XYZ B.V., asked us if
it is possible to send an
executive employee to
Yangon to conduct mar-
ket research before their
new company has been
approved and registered
for operation. In our case
study last week, we al-
ready advised them to
set up a MIC company.
MIC approval will take
approximately 3 months;
however, the company
wants to start research ac-
tivities right away. In this
particular case we do not
recommend sendIng sLu
or an executive research-
er to Yangon on a tourist
visit visa.
A tourist visa is only val-
id for a single entry, which
is granted for a period of
28 days, and does not al-
low the holder to engage
in any sort of commer-
cial activities in Myan-
mar. Because leasing an
apartment is prohibited
to individuals holding a
LourIsL vIsu, sLu Irom
XYZ B.V. is only allowed
to stay at a hotel that has
been pre-approved by
the Ministry of Tourism.
TIereIore, sLu wIsIIng Lo
conduct market research
should enter Myanmar
with a valid business visa,
issued upon arrival at ei-
ther Yangon or Mandalay
International Airports or
by a Myanmar consulate
Strohal Legal Group presents a weekly case study aiming to provide an overview and
updates on the legal framework in Myanmar
abroad. To obtain a busi-
ness vIsu, LIe sLu mem-
ber needs an invitation
letter from a Myanmar
company as well as a copy
oI LIe compuny`s omcIuI
regIsLruLIon cerLIhcuLe.
But, is it possible to ob-
LuIn LIese omcIuI docu-
ments? Yes.
XYZ B.V. wants to
prompLIy begIn heId re-
search especially given
their competitors are also
attempting to enter the
market. Therefore, it is
vital to send an executive
employee immediately
to Myanmar with a valid
business visa. In this case,
one of our clients, a 100
percent Myanmar com-
pany, is ready to assist
by issuing the required
documents for a small fee.
However, it is important
for the business activ-
ILy Lo sLund hrm on IeguI
ground. Our Myanmar
client company is also
ubIe Lo omcIuIIy empIoy
XYZ B.V.s market re-
seurcI sLu und puy LIeIr
salaries after reimburse-
ment. Personnel leasing
and recruitment services
are legal in Myanmar and
also provide full payroll
services and employ-
ment-related tax advice.
Given this situation, we
advised XYZ B.V. to send
deLuIIs ubouL LIeIr sLu
to the local company so
IL cun Issue omcIuI vIsu
documents that enable its
employees to obtain their
business visa, make ar-
rangements for employ-
ment, payment of salaries
and other legal require-
ments. During this pro-
cess, LIe IoreIgn sLu wIII
remain under the control
and supervision of XYZ
B.V.
Later, after MIC has
granted XYZ B.V. its com-
pany registration, it can
apply for a work permit at
the Directorate of Labour
under the Ministry of La-
bour, and a stay permit
and visa to the Immigra-
tion and National Regis-
tration Department from
the Ministry of Immi-
gration and Population.
Once these permits are
approved, XYZ B.V. can
issue invitation letters
and other required docu-
ments needed for their
sLu Lo obLuIn u busIness
visa.
In the next case study
we will advise the XYZ
B.V. about renting real
estate.
Strohal Legal Group
(SLG), founded by Dr
Theodor Strohal in 1979,
is c lcu jrm ogerin
highly personalized ser-
vices specializing in in-
ternational and cross
border business. SLG
enjoys a well-established
reputation across Eu-
rope, Southeast Asia
and the Middle East. In
Myanmar, SLG provides
services under the name
U Min Sein & Strohal As-
sociates Law Firm.
The views and opinions
expressed here are the
authors own and dont
necesscril reject M-
anmar Business Todays
editorial opinion.
XYZ B.V. ~ . .,_, .~
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KBZ Bank to Launch Online Banking Services
Aung Phyo
M
yanmars larg-
est private bank,
Kanbawza Bank,
will launch online and
mobile banking services
soon, the bank said.
US-based information
security company, RSA,
will provide protection to
its customers from online
fraud and cyber threats, it
said. RSA is the security
division of EMC, which is
an American multination-
al corporation.
The bank started with an
initial capital of K477 mil-
lion ( about $500,000) in
1999 and has expanded
its capital to K113 billion
($117 million) in 2014,
according to the banks
hnuncIuI sLuLemenL.
Early this year, another
private bank, the Coop-
eratives Bank (CB), has
introduced mobile bank-
ing system services in the
country on a trial basis.
There are more than 20
private banks and three
state-owned banks in My-
anmar.
The Central Bank of
Myanmar recently an-
nounced that it would
grant foreign banks to op-
erate banking business in
the country by September
und uL IeusL hve Lo 1o Ior-
eign banks will be given
permission.
_., .:. -~_~ .. .. . ~
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._~:.~. ,~~. Mobile
Banking ~,..:..,.~
.~ ~.~: ~_ .e: ..:
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~.~ ~.~ . _ . .q.~ . ~
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.q._.
A KBZ Bank branch in Yangon.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
11
Rubber Farmers Seek Govt
Help to Wurd oH Iulling Prices
Htun Htun Minn
M
yanmars rubber
farmers have re-
quested support
from the government af-
ter compounding falls in
the price of rubber have
seen many struggling to
support themselves.
The sharp drop of rub-
ber prices, a cash crop
grown in almost all of
Myanmars regions and
sLuLes, In LIe zo1-1q hs-
cal year, drove almost
a million farmers and
workers at rubber planta-
LIons InLo hnuncIuI Iurd-
ship, Daw Mi Myint Than,
a member of the parlia-
ment, said.
She said neighbour-
ing countries had often
helped struggling rubber
growers in similar condi-
tions, requesting the gov-
ernment to provide direct
support to farmers and
guarantee a minimum
price for the rubber they
produce.
However, deputy min-
ister for agriculture and
irrigation, U Ohn Than,
said the government was
unable to provide loans
or set minimum prices for
rubber due to scarcity of
funds.
The price of rubber
changes daily, depending
on demand from the glob-
al market and large users
of raw rubber. Thailands
rubber exports, however,
receive a larger price per
tonne, $2,000, whereas
Myanmars rubber ex-
ports only receive $1,500
per tonne, due to lower
quality.
U Ohn Than said My-
anmars rubber exports
should therefore improve
their production quality if
they hope to improve the
price they receive.
Factors including slow-
ing global economic
growLI, IIngerIng eecLs
of Europes debt crisis
und IrequenL ucLuuLIons
of global oil prices often
as a result of internal con-
IcLs - ure seen us IurgeIy
responsible for drops in
rubber prices.
Declines in vehicle pro-
duction in China, one of
the worlds largest rubber
consuming countries, and
large expansions in their
rubber production and
reserves has seen a fall in
rubber imports.
Myanmar has also seen
a total expansion of 1.5
million acres in rubber
plantations in almost eve-
ry state and region except
Kayah, Chin and Magwe,
with production increas-
ing 177,125 tonnes in
zo1-1q hscuI yeur. Mon
state produced 10,000
tonnes of rubber in 2013-
14FY in 48,000 acres.
Myanmar Summary
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
Myanmar Summary
Myanmar Summary
UN to Help Myanmar Prepare for A Warming Climate
A boy Iooks at Hooded eIds near his destroyed home after CycIone Nargis hit the Irrawaddy deIta.
A
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Megan Rowling
U
N agencies have
signed an agree-
ment with Myan-
mars government to help
the Southeast Asian na-
tion prepare for climate
change impacts, including
droughts, cyclones and
usI oods.
The United Nations En-
vironment Programme
(UNEP) and the United
Nations Human Settle-
ments Programme (UN-
Habitat) will support
Myanmar to integrate
climate change considera-
tions into policies, and to
develop a national strate-
gy to prepare for a warm-
ing climate.
The impacts of climate
change are here and now
in the present, and are
likely to become more se-
vere in the future, said
Yoshinobu Fukasawa,
UN-Habitats regional di-
recLor Ior AsIu-PucIhc.
These impacts threaten
both the progress towards
the Millennium Develop-
ment Goals Myanmar has
made in the last few years
and also the rapid eco-
nomic growth the country
is currently experienc-
ing.
In May 2008, for exam-
ple, Cyclone Nargis swept
across Myanmar, trigger-
ing a huge sea surge and
killing nearly 140,000
people. It destroyed vil-
Iuges und puddy heIds, se-
rIousIy uecLIng up Lo z.q
million people in Yangon
and the Irrawaddy Delta.
Scientists expect more in-
tense storms like this, as
the planet warms.
The four-year pro-
gramme will be led by the
Ministry of Environmen-
tal Conservation and For-
estry and implemented by
the two UN agencies. The
European Union has pro-
vided 4 million ($5.45
million) in funding as
part of a wider global ini-
tiative.
The momentum of re-
form and the possibility
for rapid growth means
that there is a unique
opportunity here to en-
courage a low-carbon
development model and
ensure climate change
adaptation is well-main-
streamed, the delegation
of the European Union to
Myanmar said in a joint
statement on the inking
of the agreement in the
capital Nay Pyi Taw.
It is crucial that this
growth and development
the country is striving for
is not undermined and
compromised.
The programme aims to
raise awareness among
government, civil soci-
ety, researchers and the
private sector about the
need to address climate
change, to coordinate
grassroots planning for
climate change, and to
pilot activities that will
build resilience in coastal
and delta regions.
At the signing ceremony,
Win Tun, Myanmars min-
ister for environmental
conservation and forestry,
said: Climate change is
one of the most challeng-
ing issues of our age and
there (is) no time to delay
LIe hgIL uguInsL IL.
Thomson Reuters Foun-
dation
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Japans KDDI, Sumitomo Corp
Strike Myanmar Telecoms Deal
To invest $2 billion
Wai Linn Kyaw
K
DDI and Sumito-
mo Corp will invest
in telecoms infra-
structure and jointly oper-
ate mobile and broadband
services with Myanmar
Posts and Telecommuni-
cuLIons (MPT), LIe hrms
announced.
No.2 Japanese wire-
less carrier KDDI and
trading house Sumitomo
said last week that they
have reached an agree-
ment with the state-run
MPT to jointly undertake
telecommunications op-
erations in the Southeast
Asian country.
The joint operations
will provide Japanese-
quality services of the
highest level in the world
In mobIIe und hxed IIne
communication services
through upgrading of the
telecommunications in-
IrusLrucLure, LIe hrms
said.
The operations will fo-
cus on customer services
in call centres and shops
to improve customer
satisfaction, as well as
contribute to the devel-
opment of Myanmars
economy and industry
and the enhancement
of Myanmars citizens
standard of living, KDDI
and Sumitomo said.
Myanmar is experienc-
ing a rapid move towards
democracy and the market
In mobIIe pIones und hxed
line communications is
expected to grow dramati-
cally in the future, said
Takashi Tanaka, president
of KDDI Corp.
Taking advantage of the
wealth of experience and
knowledge that we have
built up both inside and
outside Japan through our
mobile phone operations
in Mongolia, MVNO busi-
ness in the US and other
operations, KDDI will
provide the same level of
Japanese-quality services
to Myanmar and contrib-
ute to the countrys growth
and development.
MPT will split earnings
from the Myanmar opera-
tions roughly equally with
a Singapore-based joint
venture of the Japanese
hrms LIuL wIII be Iormed
in August, Sumitomo Ex-
ecutive Vice President
Shinichi Sasaki told a
news conference.
TIe hrms pIun Lo In-
vest about $2 billion over
the next decade to ex-
pand service in one of the
worlds least-connected
countries.
Well be able to reach
prohLubIIILy In u sIorL pe-
riod of time, KDDI Sen-
ior Vice President Yuzo
Ishikawa said.
Kuniharu Nakamura,
president and CEO of Su-
mitomo, said: Our busi-
ness record in Myanmar
stretches over 60 years ....
Using the know-how and
experience that we have
thus cultivated, we will
do our part to support
the improvement of living
standards and industrial
development in Myanmar
through this joint opera-
tion.
MPT is currently My-
anmars sole telecoms
operator as well as the
industry regulator. The
government plans to cre-
ate a new regulator by
2015 and divest a minor-
ity share in MPT, which
will remain one of four
licensed operators. State-
backed Yatanarpon, until
now primarily an inter-
net service provider, also
holds a licence. Norways
Telenor and Qatars Oore-
doo won hotly contested
bidding for two new li-
cences in June 2013 and
are now building their
networks.
Myanmars telecoms
industry was tightly con-
trolled under decades
of military dictatorship,
with the government
monopolising the sector
and selling SIM cards for
thousands of dollars when
they were introduced a
decade-and-a-half ago.
As a result, Myanmar
had one of the worlds
lowest mobile penetra-
tion rates. Swedish tel-
ecom giant Ericsson said
in 2012 that fewer than 4
percent of its 60 million
people were connected.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
Samsung Halts Business with Chinese
Supplier Over Child Labour Fears
Se Young Lee
S
amsung Electron-
ics Co Ltd said last
Monday it had sus-
pended business with a
Chinese supplier it sus-
pected of employing child
labour, less than a week
after a U.S. watchdog
report accused the sup-
plier of using under-aged
workers.
The South Korean
smartphone maker said
it found an illegal hir-
ing process at Dongguan
Shinyang Electronics Co
Ltd, which supplies mo-
bile phone covers and
parts.
Dongguan Shinyang
Electronics could not im-
mediately be reached for
comment. South Korean
hrm SIInyung EngIneer-
ing Co Ltd., which owns
all of Dongguan Shin-
yang, also could not be
immediately reached for
comment.
Samsung added that it
had previously found no
child workers at the Chi-
nese company in three au-
dits since 2013. The latest
audit ended on June 25.
The Chinese authori-
ties are also looking into
the case, Samsung said
in a statement on Mon-
day, adding that it would
cut all ties with the sup-
plier if the allegations
were true.
If the investigations
conclude that the suppli-
er indeed hired children
illegally, Samsung will
permanently halt busi-
ness with the supplier in
accordance with its zero-
tolerance policy on child
labour, it said.
U.S.-based China La-
bour Watch released a
report on Thursday alleg-
Ing LIuL LIe CIInese hrm
used child labour. The
U.S. watchdog said it had
Iound uL IeusL hve cIIId
workers without con-
tracts at the supplier.
Samsung demands sup-
pliers adopt a hiring pro-
cess that includes face-to-
face interviews and the
use of scanners to detect
fake IDs, to ensure no
child labourers are em-
ployed.
But China Labour
Watch said that Sam-
sungs monitoring system
wus IneecLIve.
The watchdog accused
one of Samsungs suppli-
ers of using child labour
in 2012. Samsung subse-
quently said it found no
under-aged workers at
the facility. Reuters
A man uses his mobile phone in front of a giant advertisement promoting Samsung Electronics new
Galaxy S5 smartphone, at an art hall in central Seoul.
K
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
Myanmar Summary
China Urges Local Governments to Buy
More New-Energy Cars
Samuel Shen and
Norhiko Shirouzu
C
hina has told gov-
ernmenL omcIuIs Lo
use more electric
and plug-in hybrid cars as
part of its drive to cut pol-
lution by putting 5 million
such vehicles on the road
by 2020.
The measure is the lat-
est in a series of steps that
could help Chinese au-
tomakers including BYD
and SAIC Motor Corp, with
President Xi Jinping urg-
ing government agencies
to buy domestic brands.
So-called new-energy
vehicles must account for
at least 30 percent of all
cars or vans purchased an-
nually by central govern-
ment agencies and some
city governments over the
three year through 2016,
with the proportion set
to rise after that, said the
National Government Of-
hce AdmInIsLruLIon.
Government agencies
wIII be oered subsIdIes Lo
buy new-energy vehicles,
which the government
dehnes us uII-eIecLrIc ve-
hicles, plug-in electric hy-
brids and hydrogen elec-
tric fuel-cell cars.
Under the new step,
LIose governmenL omces
are also required to build
charging stations and im-
prove other infrastructure
for green vehicles.
The new rules came
days after China scrapped
a purchase tax for new-
energy vehicles, fearing
that it had fallen far be-
hind in meeting a target
of putting 500,000 new-
energy vehicles on the
road by next year.
Earlier this year, major
Chinese cities including
Beijing, Shanghai and
Tianjin opened up their
markets to electric car
makers based in other
cities as China moves to
reduce intra-country pro-
tectionism. Reuters
Modis Farm Export Curbs may Ease
Indiu's Jone Inution
Manoj Kumar
I
ndIu`s InuLIon prob-
ably eased margin-
ally in June after the
new government curbed
farm exports, but a grow-
ing risk that drought will
shrivel summer crops
could encourage the cen-
tral bank to keep interest
rates on hold.
Prime Minister Nar-
endra Modi, elected in
May amid anger over ris-
ing prices, has ordered a
crackdown on hoarding
to hold down food prices
and set limits on the ex-
port of staples, such as
onions and potatoes.
PresenLIng IIs hrsL
budget on Thursday, Fi-
nance Minister Arun Jait-
Iey vowed Lo keep LIe hs-
cuI dehcIL uL q.1 percenL oI
gross domestic product in
LIIs hscuI yeur, wIIIe uIIo-
cating more funds to ease
InuLIonury pressures.
The monsoon this year
appears more unpredict-
able, he told lawmakers,
adding that the govern-
ment would take all steps
necessary.
Consumer prIce Inu-
tion INCPIY=ECI prob-
ably eased to 7.95 percent
last month, down from
8.28 percent in May,
while wholesale price in-
uLIon NWP=EC eused
to 5.80 percent, the Reu-
ters poll of economists
found.
The government will re-
lease the data on whole-
sale prices on Monday
around 0230 EST. Con-
sumer price data is due at
0800 EST.
ModI Iuces IIs hrsL cIuI-
lenge as soaring prices for
basic food items, such as
milk and potatoes, lifted
reLuII Iood InuLIon Lo
9.4 percent in May, driv-
Ing wIoIesuIe InuLIon Lo
u hve-monLI IIgI oI 6.o1
percent.
The government is
banking on stocks of food
such as rice, wheat and
sugar from recent bumper
harvests, but has few ways
to cap prices of fruits and
vegetables that drive food
InuLIon.
The measures may
prove to be inadequate
in light of the supply-
demand dynamics as-
sociated with perishable
products, absence of ad-
equate cold storages and
InemcIencIes In LIe do-
mestic supply chain, said
Aditi Nayar, an economist
at ICRA, the Indian arm
of rating agency Moodys.
ReLuII InuLIon Ius
eased to about 8 percent,
after staying in near dou-
bIe-dIgIL hgures Ior LIe
past two years, the highest
among the BRICS group
of emerging economies -
Brazil, Russia, India, Chi-
na and South Africa.
Economic growth has
been stuck below 5 per-
cent for two years - the
longest slowdown in
more than a quarter of a
century. The economy is
expected to grow slightly
above 5 percent in this
hscuI yeur Lo MurcI zo1.
In 2009 benchmark
New York futures swept
to a 30-year high after the
worst drought in nearly
four decades forced India,
the worlds top sugar con-
sumer, to buy large quan-
tities of the sweetener
from top producer Brazil.
The farm sector ac-
counts for around 14
percent of Indias nearly
$2 trillion economy, and
two-thirds of its popula-
tion of 1.2 billion live in
rural areas.
Weak investments and
industrial performance
have hurt economic
growLI, buL hgures on
Friday showing that in-
dustrial output grew 4.7
percent in May on the
year bettered expecta-
tions for a rise of 3.8 per-
cent.
Output gained just 0.1
percenL In LIe hscuI yeur
that ended in March.
Reuters
Myanmar Summary
Workers sit and lie on stacked bags of sortex rice during their lunch break at a warehouse in a wholesale
market in Mumbai.
D
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S
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A model poses next to the Dongfeng EJ02 during the opening day of the Shanghai Auto Show.
A
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
15
Myanmar Summary
Myanmar Summary
Muluysiun Air rops us Lkruine Attuck Iollows Ilight ,o
Shamim Adam
M
alaysian Airline
System Bhd.
(MAS) shares
tumbled the most in nine
weeks after one of its planes
was shot down in Ukraine,
four months after the dis-
appearance of Flight 370
contributed to the carriers
biggest loss since 2011.
The stock lost 13 per-
cent to 19.5 sen as of
9:59 a.m. on July 18 in
Kuala Lumpur, extend-
ing this years drop to 37
percent, while Malaysia
Airports Holdings Bhd.
(MAHB) fell 4.2 percent.
The FTSE Bursa Malay-
siaKLCI Index retreated
0.4 percent and Malay-
sias ringgit weakened 0.4
percent versus the dollar.
The Bloomberg World
Airlines Index slipped
0.2 percent, following a
2 percent tumble on July
17 amid speculation the
crusI wIII deLer Iers.
Malaysian Airs Flight
17, carrying 298 passen-
gers and crew, was shot
down last Thursday over
eastern Ukraine in an at-
tack that the government
in Kiev blamed on pro-
Russian rebels. The carrier,
which has lost 4.57 billion
ringgit ($1.4 billion) since
the start of 2011, had been
speeding up an overhaul of
its business after the dis-
appearance of Flight 370
spurred the longest search
for a missing plane in mod-
ern aviation history.
This is shocking,
Georey Ng, un udvIser
for strategic investments
at Fortress Capital Asset
Management Sdn., which
oversees about 1 billion
ringgit, said in Kuala
Lumpur. Investors will
wunL Lo seII hrsL und geL
more information later.
This will raise concerns
about the safety culture of
airlines in general.
Ukr ai ne Battle-
gr ound
CuLIuy PucIhc AIrwuys
Ltd. (293), the biggest
international carrier
in Asia, dropped 1.4 per-
cent in Hong Kong trad-
ing while Air China Ltd.
declined 1.3 percent. Del-
ta Air Lines Inc., Ameri-
can Airlines Group Inc.
(AAL) and United Con-
tinental Holdings all re-
treated more than 3.4
percent in U.S. trading
last Thursday.
Ukraines state security
service said it intercept-
ed phone conversations
among militants discuss-
ing the missile strike,
which knocked Flight 17
from the sky about 30 kil-
ometers (18 miles) from
the Russian border. The
separatists denied the ac-
cusation.
U.S. omcIuIs suId LIe
weapon probably was a
Russian-made model used
widely in Eastern Europe.
The Boeing Co. (BA) 777
crashed en route to Kuala
Lumpur from Amsterdam
in the main battleground
of Ukraines civil war.
The jet didnt make a
distress call, Malaysian
Prime Minister Najib
Razak told reporters at
the Kuala Lumpur Inter-
national Airport today.
TIe uIrcruIL`s IgIL rouLe
was declared safe by the
International Civil Avia-
tion Organisation, and
the International Air
Transportation Associa-
tion has said the airspace
the plane was in was not
subject to restrictions,
Najib said.
Tur nar ound Str uggle
The escalation of
Ukraines crisis, com-
bined with Israels move-
ment of ground forces
into the Gaza Strip,
IueIIed u seIIo In gIobuI
equities yesterday. The
MSCI All-Country World
Index dropped 0.9 per-
cent, and lost another 0.1
percent today.
Malaysian Airs ma-
jor shareholder and sov-
ereign wealth fund, Khaz-
anah Nasional Bhd., said
last month it had time to
come up with a restructur-
ing plan as the carrier has
funds to last about a year.
Asuki Abas, a spokes-
man for Khazanah, said
the fund will focus its
energy on supporting Ma-
laysian Air in emergency
eorLs. He decIIned Lo
comment further.
The Subang Jaya, Ma-
laysia-based carrier last
reporLed un unnuuI prohL
in 2010. Malaysian Air
missed its target to be
prohLubIe IusL yeur us rIs-
ing prices for fuel, main-
Lenunce und hnuncIng
wiped out revenue gains.
Analysts project losses
through 2016 for the air-
line, according to data
compiled by Bloomberg.
Tough Road
Malaysian Air will have
a tough road ahead to re-
build its image, Hong
Leong Investment Bank
Bhd. analysts wrote in a
report last Friday. Con-
sumer sentiment on its
safety record will be deep-
Iy uecLed, wIIcI Ius Iur-
ther hampered its hope to
turnaround by 2015.
The vanishing of MH370,
which carried mostly Chi-
nese passengers, put the
carrier under global scru-
tiny, jeopardizing its repu-
tation and prompting boy-
cotts in China. It has also
hurt the country as a travel
destination, with Chinese
tourists canceling their vis-
its to the Southeast Asian
nation, according to Ma-
laysias tourism promotion
agency.
This is beyond unlucky,
Mohshin Aziz, an analyst
at Malayan Banking Bhd.
in Kuala Lumpur, said in a
note to clients. It will take
a very long time to over-
turn this. Bloomberg
Sogur ecit Seen by Rubobunk us
Low Prices Reduce Production
Phobe Sedgman
T
he sugar market
wIII swIng Lo u deh-
cit as sustained low
prices curb supply for a
second year, according to
Rabobank International,
which joined Czarnikow
Group Ltd. and Kingsman
SA in forecasting an end
to surpluses.
Global output of raw
sugar will fall short of de-
mand by about 900,000
metric tons in the 12
months from October,
Rabobank said. That
compares with glut of
1.4 million tons in 2013-
2014, the bank said in an
e-mailed quarterly report.
Raw-sugar prices
dropped more than 50
percent from a 30-year
high in 2011 as world
supplies consistently sur-
passed demand. Global
output will lag behind
consumption by 500,000
tons in 2014-2015 as
production stabilizes,
London-based Czarnikow
forecast last week. The
degree of supply tight-
ening depends on how a
forecast El Nino develops,
Rabobank said.
It is a little early to be
certain that the market
Is pussIng un InecLIon
point, the bank said. If
the question is whether
we are cycling towards
higher prices, our cur-
rent belief is that we are
indeed heading in that di-
rection, slowly, with may-
be a bump or two on the
road still to come.
An El Nino, which can
bring drought to the
AsIu-PucIhc regIon und
heavier-than-usual rains
to South America, is likely
to develop by Australias
spring, which starts in
September, the countrys
Bureau of Meteorology
said on July 1. Theres at
least a 70 percent chance
of the event developing
this year, it said.
Raw sugar for October
delivery closed at 17.07
cents a pound on ICE Fu-
tures U.S. in New York on
July 11, 4 percent higher
this year. The commodity
lost 16 percent in 2013,
retreating for a third year
in the longest run of an-
nual declines since 1992.
Global sugar demand
will exceed production
by 239,000 tons in the
crop year from October
2014 to September 2015,
Lausanne, Switzerland
Kingsman SA estimated
in May. Bloomberg
.... q:. ..._ ~: . . .
..,. (MAS) - ..e:
~.~ ,~ ..:~...._~:
, ...._ ~: .. .~~ ~
.~.q._.. ....~_~:~
e ~q , .... ,~ ~~ ._
.,:~ . ..e: ~. . ... ..
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..._~: .. .-q e e:...
.,..: ~. ~ .,~ ,:q
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, q:. . , .. .q:~ q ... ~:
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(MAHB) - q e e:.:.. :
, ... q:..,.~...
._. ....q:...~:...~~
FTSE ~ , .~ , .. : . _...
,q:. . ,.~... :._. .....q :.
q......,..: ._... ,
q:..,. ~...:.._.
...|. . ~..:
.:..: .... q :. ..e:
~.~ ~ .: ~.. ~ q~
., ~ e ~q , .. ~.q . ._
.....q_.._e._.. ,q:...:.
. . . , .:. -.~ . ~ _e.
._~:. ~q~-~..q~ ...
:. ._ . .|e: ~~e ~
~ , . . ..:~ .:..q:.|. ''e
~ :.:.. . ~._ .. ~ q .. .
_....q.~_~... Geoffrey
Ng ~ .._.q..._....
.~~ ~.~~.~.~ .
.e q e e:.~ ~ ~q .q: .
~ _~. :.|.. ~ . ~..._~: .
..~:...q ._..~._.~.,
~..'._ .. .q . . .~..'..|~
.....e''e ,.~ .._.
....q :...._~: .. .
~.~: . ~ q . q . ~ _., ~_
..:~e .~:.~:.~.~.q .
~ ..:~ q. . .e ''e e , . ,
q..._....~~ ~_.,
._.
. ~~:._ ~:... .~ ~
~ ....,..:..qq_~..
_ . .._ ~: . . . . .~ ~ ~
~ . . . ~...:._ ~~ ~
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_e.._~:. .~~:.._~.
~, ..: . ....,..: Rabobank
International ~. .q
._.
_. ..._.. .~:~~:.
. ._ .~ q ~. , ~ .
~~:._~:.~_~..~q..:
~e . ~:. .~:~ ~, . ,
~~,~~~ ., ..:,_ ..,._~:.
Rabobank ~. ._.~~,~,
.~..q:.~. ~~...
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._~:. .q._.
...~~e: ....,.~~~
~~ .~_.,..:..~:
~.~: ~,.~:~ ..:_ ~_
q.e .~q .~: ~.~~
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.: ~._.:.~.~.. ...q
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A reghter sprays water to exstinguish re amongst the wreckages of the MaIaysian airIiner.
B
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
16
Myanmar Summary
Myanmar Summary
BRICS Iight Wuning Cloot With $1goB
Deal in Brazil Summit
Raymond Colitt
T
Ie Ieuders oI hve oI
the worlds largest
emerging markets
will showcase a new cur-
rency reserve fund and
development bank. Crit-
ics say neither is enough
to revive the groups wan-
ing clout.
Brazil, Russia, India,
China and South Africa,
known as the BRICS, will
approve the creation for
the $100 billion reserve
fund and $50 billion bank
at a July 15-16 summit
in Brazils coastal city of
Fortaleza and the capital
Brasilia.
The initiatives are born
out of frustration with a
lack of participation in
global governance, partic-
ularly in the World Bank
and International Mon-
etary Fund, said Arvind
Subramanian, senior fel-
low at the Peterson In-
stitute for International
Economics. The measures
arent big enough to boost
growth or cohesion in
the group as foreign in-
vestor sentiment sours
and member states focus
on issues close to home,
such as Brazils elections,
LIe conIcL In UkruIne
and new economic policy
plans in India.
Its hard to see a lot of
impetus at this stage for
the BRICS in general and
for these initiatives in
particular, Subramanian
said by telephone from
Washington. Theres go-
ing to be a lot of attention
on domestic issues.
Economic growth in the
hve counLrIes Is projecLed
to average 5.37 percent
this year, half the pace
seen seven years ago, ac-
cording to the median
estimate of economists
surveyed by Bloomberg.
Brazil and Russia will
grow 1.3 percent and 0.5
percent, respectively.
Common Poli cy
Yuri Ushakov, Russian
presidential aide on for-
eign policy, said in an in-
terview that the groups
growth rate is still above
that of the global average
and that its economic and
political weight is increas-
ing.
The BRICS have evolved
from the original term
coined in 2001 by then-
Goldman Sachs Group
Inc. economist Jim
ONeill to describe the
growing weight of the
largest emerging markets
in the global economy. In
2011, South Africa joined
to give the BRICS a broad-
er geographic representa-
tion. The groups track
record in pursuing a com-
mon agenda on the world
stage has been mixed.
Its easier to say what
the BRICS arent than
what they are, said Jose
Alfredo Graca Lima, un-
der-secretary for politi-
cuI uuIrs uL LIe BruzIIIun
Foreign Ministry.
TIe hve counLrIes IuIIed
to agree on a candidate to
head the World Bank in
2012 and the Internation-
al Monetary Fund in 2011,
two posts at the heart of
their demands for more
say in global economic
matters.
Tr ade Poli cy
The summit is unlikely
to provide a common
front to push ahead global
trade talks either, even
though the World Trade
Organization is headed
by Brazilian Roberto
Azevedo. Brazil itself has
increased protectionist
measures under Presi-
denL DIImu Rousse.
Airbus Jet Relaunch Heralds Busy Aerospace Show
I wouldnt say that
there will be a common
outcome in that sense,
but certainly there will be
discussion on WTO mat-
ters, said Sujata Mehta,
secretary for economic
relations at the Indian
Foreign Ministry.
India and South Africa
have signaled they may
backtrack on a trade fa-
cilitation agreement
reached at the WTO talks
in Bali in December 2013,
wrote Carlos Braga and
Jean-Pierre Lehmann,
professors at Lausanne,
Switzerland-based IMD
business school.
Still, Indian Prime Min-
ister Narendra Modi is
unlikely to rock the boat
at the Brazil summit,
said N.R. Bhanumurthy,
an economist at the Na-
tional Institute of Public
Finance and Policy, a gov-
ernment-backed research
institute in New Delhi.
Domestic issues are
dominating his agenda,
especially growth and in-
uLIon, BIunumurLIy
said. Bloomberg
Tim Hepher and
Victoria Bryan
A
Irbus wIII kIck o
the Farnborough
Airshow with up to
100 commitments for its
revamped A330neo wide-
body jet, industry sources
said, deepening a con-
test with Boeing for up to
$250 billion of orders at
the core of the long-haul
jet market.
After months of specula-
tion, the European plane
maker will unveil an up-
grade of its popular but
ageing A330, powered by
Rolls-Royce engines and
oerIng 1q percenL In IueI
savings. Airbus Group de-
clined to comment.
The upgraded A330 is
Airbuss attempt to pro-
Iong LIe IIIe oI ILs prohL-
able twin-aisle jet, as the
European company tries
to preserve market share
against Boeings much
newer 787 Dreamliner.
The A330 has enjoyed
a resurgence of sales be-
cause of delays in deliv-
eries of Boeings tech-
nically ambitious but
LemperumenLuI curbon-h-
bre jet, but it is in need of
a refresh to keep selling.
Analysts say it also plugs
a potential future gap in the
Airbus wide-body jet port-
folio after poor sales of its
A350-800 - the minnow of
the next-generation A350
family whose development
looks set to be halted or
suspended as a result.
The commercial de-
but of two models called
A330-800neo and A330-
qooneo, hrsL reporLed
by Reuters, heads a busy
schedule of announce-
ments on day one of the
show, at which Boeing
could hit back promptly
with new sales of its 787
Dreamliner.
Analysts have until now
generally predicted a
low-key show, because of
steadily growing fears of
airline overcapacity.
But industry sources
gathering for the July 14-
20 event said evidence
pointed to well over 500
orders or commitments
ranging from a 100-plane
lessor deal to a single
plane for Fiji. It may not
be immediately apparent,
however, how many or-
ders are new.
Malaysias AirAsiaX
has campaigned for an
A330neo to save on fuel
bills but is seen likely to
exchange any new order
against at least part of its
38 outstanding current-
generation A330s.
Boeing begins the week
with a clear advantage
after gaining 703 gross
orders up to July 8, or
649 after cancellations,
against Airbuss end-June
total of 515 gross orders
and 290 net. Reuters
India's Prime Minister Narendra Modi (L-R), Colombia's President Juan Manuel Santos, Brazil's President
Dilma Rousseff, Chile's President Michelle Bachelet, China's President Xi Jinping and Ecuador's Presi-
dent Rafael Correa talk at a group photo session during the 6th BRICS summit and the Union of South
American Nations (UNASUR) in Brasilia.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
Mal Langsdon
I
nsurers are eagerly
eyeing exponential
growth in the tiny cy-
ber coverage market but
their lack of experience
and skills handling hack-
ers and data breaches
may keep their ambitions
in check.
HIgI prohIe cuses oI
hackers seizing sensitive
customer data from com-
panies, such as U.S. retail-
er Target Corp or e-com-
merce company eBay Inc,
have executives checking
their insurance policies.
Increasingly, corporate
risk managers are seeing
insurance against cyber
crime as necessary budget
spending rather than just
nice to have.
The insurance broking
arm of Marsh & McLen-
nan Companies estimates
the U.S cyber insurance
market was worth $1 bil-
lion last year in gross
written premiums and
could reach as much as
$2 billion this year. The
European market is cur-
rently a fraction of that, at
around $150 million, but
is growing by 50 to 100
percent annually, accord-
ing to Marsh.
Those numbers repre-
sent a sliver of the overall
insurance market, which
is growing at a far more
sluggish rate. Premiums
are set to grow only 2.8
percenL LIIs yeur In Inu-
tion-adjusted terms, ac-
cording to Munich Re, the
worlds biggest reinsurer.
Insurers Struggle to Get Grip on Burgeoning
Cyber Risk Market
The European cyber
coverage market could
get a big boost from draft
EU data protection rules
in the works that would
force companies to dis-
close breaches of custom-
er data to them.
Companies have be-
come aware that the risk
of being hacked is una-
voidable, said Andreas
Schlayer, responsible for
cyber risk insurance at
Munich Re. People are
now more aware that
hackers can attack and do
great damage to central
infrastructure, for exam-
ple in the energy sector.
Insurers, which have
more experience handling
risks like hurricanes and
hres, ure now rusIIng Lo
gain expertise in cyber
technology.
L Is u dImcuIL rIsk Lo
price by traditional insur-
ance methods as there
currently is not statisti-
cuIIy sIgnIhcunL ucLuurIuI
data available, said Rob-
ert Parisi, head of cyber
products at insurance
brokers Marsh.
Andrew Braunber-
gon, research director at
U.S. cybersecurity advi-
sory company NSS Labs,
said that some energy
companies have trouble
persuading insurers to
provide them with cyber
coverage as the industry
is vulnerable to hacking
attacks that could trigger
disasters like an explosion
in a worst-case scenario.
Pricing on policies for
retailers has climbed in
the wake of recent high-
prohIe breucIes uL TurgeL,
Neiman Marcus, and oth-
er merchants, he added.
A Necessar y Cost
Though still very much
in its infancy, the mar-
kets potential is vast
with cyber crime cost-
ing the global economy
about $445 billion every
year, according to an es-
timate last month from
the Washington-based
Center for Strategic and
International Studies.
While many companies
have in the past counted
on their general com-
mercial liability policies
for coverage, they are
increasingly taking out
standalone contracts.
One reason for the
change in attitude is a
New York state court rul-
ing in February against
Sony Corp. The company,
which has appealed the
decision, had sought to
force providers of its gen-
eral commercial liability
insurance to foot the bill
for class action lawsuits
following a major 2011 cy-
ber attack on Sony Play-
Station Network.
This issue with Sony is
that it did not have a stan-
dalone cyber product,
said Peter Beshar, general
counsel at the Marsh &
McLennan Companies.
Target was better pro-
tected when some 40 mil-
lion payment card num-
bers were stolen last year.
It had $100 million in cy-
ber insurance, according
to the trade publication
Business Insurance.
With low interest rates
limiting revenues from
insurers vast bond port-
folios, the extra under-
writing income from the
fast growing new market
is all the more welcome.
The cost of cyber insur-
ance varies depending,
but on average $1 mil-
lion in protection ranges
from about $20,000 to
$25,000, according to
Beshar.
German insurance giant
Allianz says its premiums
for 10-50 million euros
in protection run about
50,000-90,000 euros in
annual premiums. For
protection of over 50 mil-
lion euros, companies can
get coverage up to 300
million euros through co-
insurance policies involv-
ing multiple underwrit-
ers.
Whether insurers are
oerIng coveruge uL prIc-
es commensurate with
the risks is anyones guess
as long as underwriters
have scant experience
with hackers.
Gr owi ng Pai ns
AXA, Europes second
biggest insurer, is making
a big push into the cyber
insurance market, but has
so far not paid out a single
business claim.
I would like to see a
successful claim, because
that would be an expe-
rience, said Philippe
Derieux, deputy CEO of
AXAs global property
and causality business.
AXA is hiring computer
experts and engineers
to build up a centralized
cyber team, but Derieux
said there is a shortage of
quuIIhed LuIenL.
It is hard for insur-
ers und brokers Lo hnd
people able to handle the
product, Munich Res
Schlayer said. Reuters R
e
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
Myanmar Summary
Vietnams Biggest Pharmaceutical
Compuny to Invest $q.-m in Myunmur
Aye Myat
D
HG Pharmaceuti-
cal JSC, Vietnams
largest drugmaker
by market value, said it
is negotiating with a My-
anmar company to start
a joint venture in the
Southeast Asian country.
TIe hrm muy InvesL us
much as 91 billion dong
($4.3 million) to make
pharmaceutical products
similar to those it sells in
Vietnam, Chief Executive
Omcer PIum TII VIeL Ngu
said in an interview with
Bloomberg.
Construction of a fac-
tory in Myanmar may
begin next year if agree-
ments are reached and
approved, Nga said.
According to Vietnam-
ese media reports, she
conhrmed LIe possIbIe
investment but noted that
the company was still in
the survey period.
We have just conduct-
ed a survey to understand
market demand and es-
pecially the law in Myan-
mar, she was quoted as
saying in the VietNamNet
news website.
The move comes as Vi-
etnamese authorities are
tightening their grips on
the sale of prescription
drugs sold over the coun-
ter.
We are preparing for
the reduction of antibiotic
sales due to tighter con-
trol, Nga told Bloomb-
erg. In Vietnam, 78 per-
cent of antibiotics are sold
through drugstores with-
out prescriptions from
doctors, according to a re-
port by FPT Securities Co.
Last year, 41 percent of
DHG revenue came from
antibiotics. The company
also sells analgesics, nu-
tritional food, respiratory,
cardiovascular and diges-
tive medicine and skin-
care products.
Myanmar is similar
to Vietnam 10-15 years
ago, but they can grow
faster. Myanmar does not
have many pharmaceuti-
cal companies. Therefore,
they have given some spe-
cial incentives for phar-
maceutical companies. We
will gain an advantage if we
cooperate with a local com-
pany, Nga was quoted as
saying in Bloomberg.
Several Vietnamese en-
terprises such as Hoang
Anh Gia Lai Group, FPT
and the Bank for Invest-
ment & Development of
Vietnam (BIDV) have al-
ready invested in Myan-
mar.
- e~ ,. . - ~_~ ...
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CEO Phan Thi Viet Nga ~
. , . ~ . _. .. . ..:
~ ~:-.~. ~. ~. . ~
._ .:_ ~:.. ._ . ..:~ _
.~ .:. ~~_ _._. ..|~ DHG
._ _.,.:.~ ...~|.
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An automated machine works on purication of a drug.
D
a
v
id

P
a
u
l
M
o
r
r
is
/
B
lo
o
m
b
e
r
g
g Remuin in
Banking Licence
Race
Zwe Wai
T
he Licensing Com-
mittee for the
award of banking
licence has shortlisted
LwenLy-hve IoreIgn bunks
to advance to the next
round in the bidding pro-
cess to grab a licence to
operate in Myanmar.
As part of the second
stage of the award of
banking licences in My-
anmar 25 proposals have
been received out of the
o pre-quuIIhed uppII-
cants, according to a re-
lease from the Central
Bank of Myanmar (CBM).
UK-based banking gi-
ant Standard Chartered
pulled out from the race.
The Licensing Commit-
tee will now evaluate each
RFP response following
detailed quantitative
and qualitative assess-
ment criteria, the CBM
release said.
The Licensing Com-
mittee will announce the
preliminary License ap-
proval by the end of third
quarter 2014, the Central
Bank added.
The preliminary ap-
proval will be followed by
an intervening period in
which operations have to
be set up.
Within the intervening
period, the licence re-
cIpIenL wIII Iuve Lo IuIhI
commitments made in
the proposal as well as to
take all necessary meas-
ures to ensure functional
banking operation from
day one of business, the
Central Bank said.
The Committee looks
forward to analysing their
plans for the development
of the banking sector in
Myanmar and to select-
ing and announcing the
Successful Applicants, it
said.
The banks are: ANZ
Bank from Australia, In-
dustrial and Commercial
Bank of China (ICBC);
BRED of France; State
Bank of India; Japans
Mizuho Bank, Bank of
Tokyo, Mitsubishi UFJ,
Sumitomo Mitsu Banking
Corp; Malaysia Maybank,
OCBC, RHB Bank and
CIMB; State Bank of Mau-
ritius, Singapores OCBC,
DBS and United Over-
seas Bank; South Koreas
Kookmin Bank, Shinhan
Bank and Industrial Bank
of Korea; Taiwans Ca-
thay United Bank, E SUN
Contd. P 20...
July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
Myanmar Summary
David Mayes
I
was recently asked
by a client about an
investment newslet-
ter he had been receiving
that seemed to have very
uncanny accuracy. Very
many people get caught
o guurd by LIese Lypes
of letters much to the det-
rImenL oI LIeIr hnuncIuI
well-being, despite the
fact that some of them do
in fact add value. Know-
Ing LIe dIerence beLween
the genuine letters that
actually give value and
the bulk of them that are
some form of a scam can
be dImcuIL even Ior pro-
fessionals, which is why I
generally advise people to
steer clear of them.
One oI LIe oIdesL hnun-
cial scams involved mak-
ing opposite recommen-
dations to an initial list of
thousands of people, half
of which the scam artist
would have gotten it right
for. After several rounds
of this, usually delivered
unsolicited to peoples
fax machines, they would
have built up a track re-
cord of being right with a
small percent of the peo-
ple on their original list.
They would then collect
fees based on skills they
did not actually possess
and when the clients lost
money they would move
on to the next batch of
suckers.
Most modern newsletter
arent so blatant, but they
have often done nothing
Beware the Investment Newsletter
more than adapted the
general scheme. Keep in
mind a newsletter is not
usually regulated and has
disclaimers to protect
them, so they can make
any fantastic claim they
want without having any
proof to back it up.
Trading seminars are
similar in this regard.
They claim things like
learn the system I used
to earn 1,100 percent
from the market in just
six months with a 97 per-
cent win rate or I have
consistently beat the S&P
500 by over 800 percent
since 2002 using this sim-
ple strategy and they do
not need to give you any
proof to back up their
claims.
Another common tech-
nique is to make so many
predictions that you get
a couple of big winners.
Then the letter writer
highlights these while
simultaneously ignor-
ing the other 95 percent
of past predictions that
either lost money or did
nothing special at all.
Some will even blatantly
lie and just look at a stock
that has made a dramatic
gain and claim to have
bought in with their per-
sonal account at exactly
the right time and then
also sold very near the
high of the move. They
will even make it a few
poInLs o on eucI sIde Lo
make it seem more believ-
able.
When looking for proof
of past performance from
anyone who claims to
be an investment guru,
always look for audited
results. Even with them,
many of the big fund
managers will do great for
ten years and then myste-
riously start losing money
as soon as you have in-
vested with them. I have
had this happen to me
more times than I would
like to remember. Diver-
sIhcuLIon, us uIwuys, Is LIe
only protection against
this.
The sad truth about the
world is that people actu-
ally do build entire busi-
nesses around blatant lies
such as these, and their
unsuspecting victims of-
ten pay exorbitant fees
on top of making invest-
ment losses. The invest-
ment newsletters I do like
are the ones that simply
provide research and sta-
tistics which you can use
to make your own trading
decisions. Even though
I am no longer a profes-
sional active trader, these
were LIe ones our omce
was happy to pay a sub-
scription fee to because
they actually provided
value that you could then
incorporate into your
sLruLegy und prohL Irom.
Please do not fall for an
investment letter which is
nothing more than a sales
pitch to open an account.
You might as well go to
the casino, where at least
you will get free drinks.
David Mayes MBA lives
in Phuket and provides
wealth management
services to expatriates
throughout Southeast
Asia, focusing on UK pen-
sion transfers. He can be
reached at 085-335-8573
or david.m@faramond.
com. Faramond UK is
regulated by the FCA and
provides advice on taxa-
tion and pensions.
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R
e
u
t
e
r
s
Govt Drafts Open Tender Bill
Htun Htun Minn
T
he United Nations
Omce Ior ProjecL
Services (UNOPS)
and the World Bank are
currently working with
the Myanmar government
to draft the Open Tender
Bill.
Once passed, this bill
will serve as the legal
framework for inviting
government procurement
tenders and awarding
construction contracts,
according to Daw Le Le
Thein, deputy union min-
ister for the Ministry of
National Planning and
Economic Development.
The bill will be based
on the current tender
evaluation criteria, which
includes the level of ex-
perLIse, hnuncIuI sound-
ness of the company, and
budget quote from the
bidders, she continued.
Tender invitations are
currently regulated and or-
ganised under the April 5,
2013 ordinance issued by
President U Thein Sein.
The ordinance provides
guidelines for forming
committees for tender in-
vILuLIon, oor prIce cuIcu-
lation, tender evaluation,
and quality evaluation.
The bill is meant to ad-
dress the varying tender
regulations and processes
by standardising the for-
mal process for all min-
istries, state and regional
governments, and busi-
nesses, according to the
deputy minister.
In January, the Ministry
of Construction took the
lead on streamlining the
tender process by pub-
lishing and distributing a
handbook to all state and
regional governments
that instructs ministry of-
hcIuIs und empIoyees on
how to award contracts
for projects.
Myanmar Summary
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Myanmar Summary
Myanmar Summary
From page 18...
Newly Launched Chamber of Commerce
Aims to Spur British Businesses in Myanmar
Jacob Goldberg
D
ozens of leaders
of Yangons grow-
ing business com-
munity gathered at the
Strand Hotel in Yangon
to celebrate the launch of
the British Chamber of
Commerce in Myanmar
on the evening of July 16.
TIe CIumber Is LIe hrsL
chamber of commerce to
open and register locally
in Myanmar following the
rollback of EU sanctions
amid the countrys politi-
cal and economic reforms.
According to the Brit-
ish Embassy Rangoon
website, the establish-
ment of the Chamber is
aligned with the British
Governments position to
support responsible, sus-
tainable and transparent
investment in Burma.
At the time of the launch,
the Chamber boasted 86
member companies in
total, making it the larg-
est chamber of commerce
currently active in Myan-
mar.
The launch event kicked
o wILI remurks Irom An-
tony Picon, managing di-
rector of Colliers Interna-
tional Myanmar, who also
serves as President of the
Chamber.
It is an exceptional
time for our Chamber to
set up in Myanmar as the
country begins its journey
towards sustained eco-
nomic and social develop-
ment.
We aim to ensure that
the Chamber is a dy-
namic, inclusive business
group LIuL reecLs LIe
memberships needs and
adds value for companies
operating in Myanmar,
said Picon.
In addition to British
companies, the Cham-
bers membership is open
to Myanmar companies as
well as foreign companies
with business interests in
the UK or Myanmar.
Picon extended this in-
vitation, saying, We en-
courage Myanmar com-
panies to get involved
in the Chamber to make
connections with inter-
national businesses and
to help keep informed of
business trends world-
wide.
British Ambassador to
Myanmar Andrew Pat-
rick said, I believe Brit-
ish business can play a
central role in support-
ing economic growth in
this country, creating jobs
and raising skill levels.
[The Chamber] has the
full support of the British
Embassy.
Secretary of the Myan-
mar Investment Com-
mission U Aung Naing
Oo said the Chamber will
strengthen ties between
companies, government
and people.
He also highlighted the
importance of the Cham-
ber in the eyes of the My-
anmar government by
remurkIng LIuL IIs omce
had recently been moved
from Nay Pyi Taw to Yan-
gon to be closer to the
rapidly growing business
community.
According to Lisa
Weedon, director of UK
Trade and Investments
Burma, the idea of estab-
lishing a British chamber
of commerce in Myanmar
sprouted from a much
smaller, informal group
of business leaders who
met regularly in Yangon
to discuss business op-
portunities and practices
in the emerging Asian
market.
When the idea of set-
LIng up un omcIuI cIum-
ber of commerce arose,
the group secured seed
funding from the British
government through its
Overseas Business Net-
works Initiative, which
seeks to strengthen the
UKs business to business
networks in 41 countries.
Myanmar was added to
the program when then-
Minister for Trade and
Investment Lord Stephen
Green visited the country
last year.
The establishment of the
Chamber comes as busi-
ness between the UK and
Myanmar registered a 244
percent increase from 2012
levels. The value of British
exports to Myanmar sky-
rocketed from 12.8m to
44m in 2013.
According to John Long-
worth, director general of
the British Chambers of
Commerce, the Chamber
brings the UK one step
closer to achieving the
goal set by Prime Minis-
ter David Cameron of in-
creasing British exports
to 1 trillion by 2020.
In addition to provid-
ing a market for British
exports, the Chamber will
also strive to integrate
Myanmar companies into
the opportunity that has
generated so much inter-
national fervour in the
country.
Stephanie Ashmore,
executive director of the
Chamber, said that she
hopes to organise bi-
monthly events for Cham-
ber members, including
training sessions for My-
anmar business profes-
sionals.
However, Ashmore also
noted that Myanmar com-
panies have been slower
to join the Chamber than
international ones, pos-
sibly due to a combina-
tion of feeling excluded by
the name of the Chamber
and simply not seeing the
benehLs oI joInIng.
Nonetheless, Ashmore
remains committed to
boosting membership
among British, Myanmar
and international compa-
nies and ensuring that the
Chambers activities allow
uII purLIes Lo benehL Irom
the business opportunity
in Myanmar.
In addition to seed
funding from the British
government, the Cham-
ber is supported by four
Founding Patrons BG
Group, Jardines, Pruden-
tial and Standard Char-
tered Bank all promi-
nent international British
corporations.
The Chamber is also
supporLed by hve GoId
Patrons Aggreko, Brit-
ish American Tobacco,
Herbert Smith Freehills,
Shell and Stephenson
Harwood in addition
to dozens of other Brit-
ish, Myanmar, and other
member companies.
Commercial Bank and
First Commercial Bank;
Thailands Bangkok
Bank, Krung Thai Bank,
Siam Commercial Bank,
Kasikornbank and BIDV
from Vietnam.
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J
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(L-R) British Ambassador to Myanmar Andrew Patrick, Managing Director of Colliers International Myanmar Antony Picon, Executive Direc-
tor of the British Chamber of Commerce Myanmar Stephanie Ashmore, UMFCCI President U Win Aung, and Secretary of Myanmar Invest-
ment Commission U Aung Naing Oo.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
FEATURE
21
Myanmar Summary
Contd. P 22...
Contd. P 22...
Education Reform: Lessons for the Future
David Ross
M
uch has been
suId oI dImcuI-
LIes oI hndIng
skilled workers in Myan-
mar, particularly outside
of the big cities, Yangon
and Mandalay. Much
more has been said about
Myanmars education
system and its failures in
addressing shortcomings
in academic achievement,
student participation or
the quality of graduates.
The i ssues
What is known is this:
Only 50 percent of chil-
dren in Myanmar who
could attend secondary
school do. School is only
compulsory for students
Ior hve yeurs, uILer wIIcI
many drop out or fail to
continue their studies,
while university educa-
tion is woefully under-
funded and poorly gov-
erned. If a student were
to complete high school
they then could choose to
follow their studies in the
tertiary sector; however,
there they would have to
deal with a system whose
complexities, shortcom-
ings and geographic dis-
persal make further study
deeply frustrating.
In addition, its been in-
dicated that although My-
anmar has laws specifying
primary education is free,
parents are often asked
to contribute money,
either to secure entry to
a better school or make
up shortfalls in fund-
ing. Based on feedback
from Yangon residents
fees can range anywhere
from K100,000 ($100)
upwards of K2,000,000
($2,000) per year, high
hgures In u counLry wIere
the average monthly wage
is about K100,000 and
many earn less.
Parents must then make
a choice as to the value
of education, as opposed
to the expense incurred
by children being absent
from work, especially giv-
en a third of all children
in the country are em-
ployed in some capacity,
uccordIng Lo hgures Irom
the UN.
Seeing children of school
age out almost any day
working in teashops or
stalls is a common sight
throughout Myanmar's
cities. Children that might
otherwise be in school in
another country are not
rather they work to sup-
port themselves or their
families.
Working children earn
money that families might
otherwise not receive,
money that goes to pay for
expenses any household
might have. If children do
not work they cost the
family money in addi-
tion to the costs that must
be paid for school.
In addition to purchas-
ing uniforms, books and
general day-to-day ex-
penses of school are the
extra costs parents must
pay for children to attend
classes after school to
make up for the short-
falls in curriculum. The
cost of tutors, many of
whom are the very same
teachers from school, can
range anywhere upwards
of K 70,000 per month.
Teachers in Myanmar are
currently paid anywhere
between K90,000 and
100,000 a month.
Root cause
The issues with Myan-
mars education system
are not new, many of
them stemming back to
decisions (or lack thereof)
decades in the making
and structural inequali-
ties in investment be-
Lween heIds. NoL uII sLu-
dents are equal in the eyes
of those who pay the bills.
A 2013 report Invest-
ing in the Future: Re-
building Higher Educa-
tion in Myanmar states
that Myanmars primary,
secondary and tertiary
education sector must
contend with a dual chal-
lenge of excessive central-
isation and the process
of decentralisation that
is currently underway.
TIe reporL IdenLIhes 1
dIerenL mInIsLrIes over-
seeing higher education,
of which the Ministry of
Education is the most
prominent. However the
ministry has an addition-
al 10 departments over-
seeing education and an
additional two units over-
seeing higher education
one for upper and another
for lower Myanmar.
The report also found
that although there was
one education ministry,
with two departments
overseeing higher educa-
tion, for a country of more
than 60 million people,
the education system also
suered Irom un Issue oI
fragmentation with 12
ministries overseeing op-
erations of universities.
The issue of fragmenta-
LIon Is reecLed In LIe Iur-
ung nuLure oI LIe unI-
versities which through
government policy were
scattered throughout the
country, unlike the case
in many other countries
where tertiary education
institutions are clustered
in one place.
Almost all of Myan-
mars non-governmental
schools were nationalised
following the 1962 coup.
The system has been
structured in this way
since at least the 1960s,
with some tipping this
as a government strategy
aimed at averting large
scale student mobilisa-
tion and participation in
political demonstrations.
Universities have been
shut down at times, some-
times for several years,
the most notable example
being the closure of Yan-
gon University following
demonstrations there in
1962 followed by the
dynamiting of the student
union building or the pe-
riod in the 1990s where
universities were closed
for three years.
With the fragmentation
of the university sector,
with many campuses or
departments in distant
reaches, many students
now complete their ter-
tiary schooling remotely.
The outcomes of this ed-
ucation, for some, have
been compared to be less
valuable than the paper
the degrees are printed
on.
Wher e i ts goi ng
The lack of a highly
skilled workforce has not
gone unnoticed. Several
assessments of Myan-
mars economic outlook
have pointed to burgeon-
ing numbers of foreign
workers in skills-based
sectors as proof of soft-
ness in numbers of quali-
hed proIessIonuIs.
To address this issue
several countries and
non-governmental or-
ganisations have com-
mitted to funding pro-
jects to improve facilities
or standards at various
educational institutions.
The most recent example,
at the time of writing, is
Australian Foreign Min-
ister Julie Bishops visit,
where she announced ad-
ditional funding of $27.8
million to boost services
in 43,000 schools and
improve teacher training
programs.
She said in a statement,
Education is essential
to the success of the My-
anmar governments
brouder reIorm eorLs.
Improvements in educa-
tion will help people de-
velop the skills to take ad-
vantage of the expanding
economic opportunities.
Countries such as Ja-
Students at a school in Shwe Koeko District, Myawaddy.
W
a
i
L
in
n

K
y
a
w

The Myanmar government in the

2012-13 budget increased funding
or education to almost $1 billion,
almost one percent of the budget.
This is compared to the 19 percent or
$16 billion of national budget Thailand,
a country of similar size, allocates to
education.
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.:.~. . .. . .~: ._ ~~ ~
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_.,.:._:.q..,.-_..,:
.:..: e.. ..'..|~.:_..
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.~.:. ..e~ .._e~.._.
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~. . . ~. . _~:. ._ .. .:.~
~._.. .,_. ._e. ._ . _:
.......:.- .~..~
.~: . .:. .:. ~:. . . .:
.~__~.|.
_., .:. ~ ~. _. ._:
.q.~_~ ~,_~._:, ~, .~
_~ ._~. .~ q _. . ._:.q.~, _~ .
_:,.: ~.q.~.|.._e.._.
~~ . . .:.~ ~, _~._:, ~ .
~ ~~~~_.:._.:._~._~..,
.._~:._. ._:.q..,..:
.~..:.q.,_.. ~..q.~|.
_e ~~...:.~ .~.
_e, ~~ :._.._e ._:. _~:.
q, ,e.~..:.. .:..q:~q
_..._~: .~:..:.~.:..
. : ~.~.. .,. _e .: ~.
_. ._:.q.~ _. .. ._~_. . q..
~.,_e ~q_ ~. ..:. . , . :
~...:.._.
__..,:~ ~ ~ e q, .
~.:.~_.:.. NGO .:...,
_._:.q._:,~.:.~_.:._. ~
q, q, . . _e_ ._ ....._
. . ~ , ..:. ..: q ~ .:_~._ .
_..._~... ..'.: ...
.,..:~.q, ._~_::.
_. . ., . ~~:. ...| ...:
q ~ .q..~ . (JICA)~._.
..'.: , ... ', ., . _
~ q, ._~:.... ~ ~~ _.:.
._ ._., .:~. .q~._ . ~~
July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
FEATURE
22
From page 21...
From page 21...
pan, India, Singapore and
the USA have launched
programs which aim to
improve education stand-
ards.
The Japan Internation-
al Cooperation Agency
(JICA) recently commit-
ted 2.5 billion ($24.63
million) to education
colleges in Myanmar, to
train teachers in basic
education. JICA indicated
at the time their reason
for investment was the
poor quality of educators,
which deters many from
further study.
These new investments,
including an increase of
budgetary allocations to
education and the reo-
pening of Yangon Uni-
versity to undergraduates
suggest further changes
in government attitudes
towards education.
The Myanmar gov-
ernment in the 2012-13
budget increased funding
of education to almost $1
billion, almost one per-
cent of the budget. This
is compared to the 19
percent or $16 billion
of the national budget
of Thailand, a country of
similar size, allocates to
education.
In addition to the
changes underway in the
education system there
have also been education
investments to service
burgeoning populations
of expatriates or moneyed
local residents, many of
whom are distrustful or
dIssuLIshed wILI IndIge-
nous educuLIon oerIngs.
UK-based British
Schools Foundation
(BSF), the governing
body of a worldwide net-
work of British Interna-
tional Schools, celebrated
its opening of the Brit-
ish International School
Yangon earlier this year
und oers u currIcuIum
in line with the English
National Curriculum and
is set to open its doors to
admissions later this Au-
gust.
While the school is a
newcomer to Yangons
expat education market it
does not mark a new age
of international educa-
tion. Rather it signals a
resurgence in a city once
well known for the quality
and calibre of its educa-
tion institutions.
The International
School of Yangon, a school
closely associated with
the American embassy,
has been in Yangon since
1955 but it too has its
maximum complement
of students. While many
of the schools students
come from international
backgrounds the single
largest student body are
Myanmar locals closely
followed by Americans
suggesting strong local
demand for a non-gov-
ernment education.
However, demand has
outstripped supply in all
of Yangons international
schools for many expat
families who now face tui-
tion costs far above previ-
ous years.
Stewart Fry, chairman
of the British Schools
Foundation, at the open-
ing of the British Interna-
tional School said: Weve
recognised that there is
an acute shortage of qual-
ity international school-
ing here. As the need for
school places from multi-
nationals and diplomatic
missions mounts our ini-
tial priority has been to
open our hrsL cumpus us
quickly as possible.
The school will ini-
tially only take 100-150
students. We are work-
ing on a purpose built
facility to accommodate
1000-plus students. Fur-
ther down the line as the
country develops we will
look at needs in other cit-
ies, he said. The fact the
school intends to increase
intake 10-times from its
initial numbers suggests a
strong demand for quality
school placements.
The British Schools
Foundation currently op-
erates ten schools, in nine
countries over three
continents.
The arrival of private
education institutions
sends a pair of signals:
hrsL, quuIILy educuLIon
InsLILuLIons ure hndIng
a place; second, there is
a pressing shortage of
places for existing and
rapidly expanding ex-
pat communities and lo-
cal demand.
The r oad ahead
Myanmars economic
future depends on its
ability to leverage not
only its commodities of
which there are bountiful,
yet largely non-renewa-
ble, stocks but also its
capacity to improve the
skills of the nation.
Not simply creating a
middle class but rather
country-wide improve-
ments in all facets of life,
from agricultural a sector
in which the vast majority
of people work to min-
ing, manufacturing, ser-
vice based sectors and the
abstract thinking sphere.
In many ways this is the
ultimate aim of any de-
veloping country, to shift
its economic model from
one of commodity export,
to a value added system,
whereby value is created
through the leveraging
of human capital, knowl-
edge, on a commodity or
to provide a wealth creat-
ing service. Making some-
thing into something else
for someone else.
One such realm Myan-
mar might look to im-
proving is education of its
countless farming fami-
lies, not only in improv-
ing literacy but also in im-
provements to the system
and infrastructure of the
system.
It should also look to
reform its dysfunction-
al university and skills
training sector through
a rationalisation of ad-
ministration reducing
the numbers of minis-
tries and departments re-
sponsible for some things
while also decentralising
education away from cen-
tral points in Yangon and
Mandalay.
Investment must be
made in producing edu-
cation that both meets
the needs of Myanmars
growing economy and
industry growth, but also
enriches the countrys
ucudemIc oerIngs. WIIIe
its all well and good to
produce wholly voca-
tional courses, designed
to train workers to exe-
cute certain sophisticated
tasks, such programs lack
in their ability to build
a knowledge bedrock
upon which capital of
a skilled workforce can
be developed. Programs
must be designed to teach
skills, but place equal
importance on building
critical thought and crea-
tivity.
Without a dramatic
increase in human capi-
tal over the next several
years, Myanmars politi-
cal and economic reforms
will have been for nothing
as production and exports
will diminish. Increas-
ing human capital in all
sectors is vital, especially
in agriculture, extractive
industries, infrastructure
development and the ser-
vice sector all of which
have fallen due to mis-
management, underin-
vestment, and illicit trade.
To improve these sec-
tors once again requires
concerted action from
governmental and non-
governmental actors with
investment in manage-
ment practices with the
added foundation of edu-
cation of those who now
hnd LIemseIves unskIIIed,
under employed, or out of
work.
Education may be hard,
especially for those who
have very little experi-
ence of formalised edu-
cation, but there simply
comes a time when the
hsI ure gone, LIe Lrees
have all been cut down
and the gem mines run
dry. Myanmars bounti-
ful commodities risk al-
ienating the country and
its people from a future
in which these are gone
if skilled capital build-
ing does not begin now
it wont be there when
the mines are empty, the
forests cut down and the
rIvers und seu hsIed-ouL.
Rather they need to be
managed in a sophisticat-
ed way which can only be
achieved through general
education while also
providing real, viable, al-
ternatives to those who
have for so long depended
on them.
Education is a means
to an end, education is
a formalised system of
improving the human
capital of the system but
it does not improve a
system by virtue of those
within it being acquaint-
ed with abstract thinking;
to build a new country
requires more than that.
The recent moves by Ja-
pan and Australia in com-
mitting money to improv-
ing teaching in Myanmar
suggest an acknowledge-
ment of some fundamen-
tal issues in Myanmars
education system its
failure to actually edu-
cate.
While there are plenty
of good teachers there
still remains a system-
wide issue of education-
outcome failures, stu-
dents going to school each
duy Lo hnd LIuL LIey cun
only get ahead by paying
more outside the formal-
ised system. Without an
improvement to teaching
there can be no improve-
ment to skills.
If education creates
skIIIs hrsL LIere musL be
teachers who teach and
pupIIs wIo cun uord Lo
learn. But before Myan-
mar moves in this direc-
tion other moves must
be made. Myanmar can
make these moves, all it
takes is will.
Students attend class at a local school on the outskirts of Yangon.
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Without a dramatic in-

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years, Myanmars political
and economic reforms will have
been for nothing as production
and exports will diminish.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Myanmar Summary
Myanmar Summary
France to Help
Urbanise Mandalay
Kyaw Min
F
rance will help in
the urbanisation
process of Myan-
mars second largest city
Mandalay through infra-
structural development
assistance.
Under an agreement
signed between Manda-
lay City Development
Committee (MCDC)
and Frances Ministry
of Economy, France will
provide assistance in the
citys urban development
projects such as garbage
disposal, transportation
services and water supply
at a cost of $1.3 million.
The Asian Development
Bank (ADB) and the Ja-
pan International Coop-
eration Agency (JICA)
have also been providing
hnuncIuI ussIsLunce und
technical skills for the
same projects.
Currently, a central
business district project
called Mingala-Manda-
lay is being jointly im-
plemented in the city by
MCDC, New Star Light
and CAD Construction
since September 2012.
The project includes
building underground
sewage system up to in-
ternational standard.
KHGs Launches Luxury
Condominium in Myanmar
Phyo Thu
K
HG Development
broke ground of its
residential luxury
condominium following
the opening of its sales
gallery last month, the
Singapore-based con-
glomerate said.
The development, IN-
FINITY, is located on the
edge of Golden Valley in
Kabar Aye Pagoda road in
Yangon.
According to KHG, IN-
FINITY, a 148-unit prop-
erty set on 28 storeys, is
seL Lo redehne Iuxury
sky living in Yangon.
The development boasts
an INFINITY Sky Terrace
wIIcI Is un enLIre oor
dedicated to resident lei-
sure facilities. Complete
with three pools, a well-
equipped gym, childrens
play area, an outdoor
exercise area, barbecue
area and function room
LIIs oor Ius 6o-degree
views of the cityscape.
KHG suys every oor oI-
fers panoramas of Shwed-
agon Pagoda, Kandawgyi
Lake and Inya Lake.
TIIs Is LIe hrsL In u se-
rIes oI reuI esLuLe oer-
ings that KHG Develop-
ment is rolling out. Later
in the year there will be
the launch of a low-rise,
luxury boutique-style,
development in another
prime location, KHG said.
KHG Holdings chair-
man Kyi Soe said, I have
uIwuys IeId hrm Lo LIe
philosophy of mutually
rewarding experiences for
all parties, a fact applica-
ble to all KHGs business
ventures. Real estate de-
velopment of the highest
standards is an exciting
new chapter in our com-
panys history.
Mary Thein, KHG De-
velopments executive
director of sales and mar-
keting, outlined the com-
panys strategy, saying,
Creating and commu-
nicating value to all our
stakeholders through our
quality products, services
and brand ambassadors
is vital to building long-
term customer relation-
ships. KHG is investing
heavily in this.
TIe hrm uIso guve u pres-
entation of its property
websILe - InhnILy-kIg.com
at the launch event.
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A rendition of the interior of INFINITY, a high-rise luxury condominium on Kabar Aye Pagoda road in
Yangon.
K
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
24
Myanmar Summary
Myanmar Summary
PROPERTY & REAL ESTATE
Sydney Set for Biggest Hotel Boom
Since Olympics in ooo
Nichola Saminather
F
ourteen years after
the last major hotel
opened in Sydneys
center, 42 developers are
competing to turn two
100-year-old government
omce buIIdIngs InLo uc-
commodations as demand
soars.
Elsewhere in the city, de-
velopers including Chinas
Greenland Holding Group
Co and Singapore-based
M&L Hospitality Trust plan
to add more than 5,300
rooms over LIe nexL hve
years. If they are completed,
the citys supply of rooms
will rise by about 20 percent
by the end of the decade, the
most since Australias larg-
est city hosted the Olympics
in 2000, according to bro-
ker CBRE Group Incs ho-
tels division.
Hotel construction is
picking up as the num-
ber of visitors to Australia
grows at the fastest pace in
at least nine years, sending
occupancies in Sydney to a
record and the highest in
Asia after Hong Kong and
Tokyo. Sydneys average
hotel occupancy is set to
reach 88.8 percent by the
end of 2016, the highest
since at least 2000, accord-
ing to economics advisory
hrm DeIoILLe Access Eco-
nomics Pty.
The hotels are all full, so
theres more than enough
demand for more rooms,
said Michael Kum, chair-
man of Singapore-based
M&L, which is adding a
third tower at its 683-room
Four Points by Sheraton,
Australias biggest hotel,
in Sydney. The new devel-
opments planned for the
citys centre mean the
whole area will be totally
transformed, he said.
Sydney ranks 15th on a
list of the most expensive
markets for hotel rooms,
according to an index
compiled by Bloomberg.
With an average room cost
of $221 a night, Sydney
lagged behind the priciest
market, Geneva, at $308,
No.2 Dubai and New York
in tenth place, at $233 for
a stay.
Almost 5,000 hotel
rooms were added in New
South Wales state over
the 12 months to Septem-
ber 2000, following about
2,300 the previous year,
uccordIng Lo hgures Irom
the Australian Bureau of
Statistics. That pace of
growth dropped sharply
following the Olympics,
with 415 rooms being
added over the year to Sep-
tember 2001, and more
than 1,900 rooms being
taken out the following 12
months across the state.
While growth across the
country turned positive
the following year, the pace
remained sluggish as the
Australian dollars climb
to a record $1.1020 in July
2011 weighed on overseas
visitor arrivals. On aver-
age, less than 700 rooms
a year have been added
in New South Wales over
the decade to June 2013,
according to the statistics
bureau.
L`s been u dImcuIL mur-
ket to grow from an opera-
tors point of view because
there hasnt been much
construction and oppor-
tunities, said Jones Lang
LaSalles Karen Wales.
The Australian dollar
bought 94 US cents as of
last week. Its set to fall to
8q cenLs by LIe hrsL quur-
ter of 2015, according to
the median of 53 analyst
estimates compiled by
Bloomberg.
As the currency wanes,
Australia is looking attrac-
tive again. The number of
overseas visitors to Syd-
ney jumped 6 percent to
2.8 million in 2013 from
the previous year, the big-
gest increase since 2005,
the earliest year of data
available from Tourism
Research Australia shows.
Travelers from China rep-
resented the biggest group
with 394,718 arrivals, a
13 percent surge from the
previous year. Growth in
overseas arrivals will aver-
age 4.5 percent a year over
the next decade, the gov-
ernment agency forecasts,
revised from an earlier
forecast of a 4 percent an-
nual increased.
The number of Austral-
ians visiting Sydney rose
7.2 percent in 2013, the
Singupore Jone Home Sules rop 6Spc us
Fewer Projects Marketed
Pooja Thakur
S
ingapores home sales
fell 68 percent in June
as developers mar-
keted fewer projects amid
cooling demand in Asias
second-most expensive
housing market following a
slew of property measures.
Home sales fell to 482
units last month from
1,488 units in May, accord-
ing to data released today
by the Urban Redevelop-
ment Authority. The sales
in June were the lowest
since March when develop-
ers sold 480 units, the data
showed.
The government began
introducing housing mar-
ket curbs in 2009 with
some of the strictest meas-
ures implemented in 2013,
including a cap on debt at
60 percent of a borrowers
income, higher stamp du-
ties on home purchases
and an increase in real es-
tate taxes. Home prices in
the Southeast Asian city
slid for a third consecu-
tive quarter in the three
months to June, the long-
esL IosIng sLreuk In hve
years, the URA said earlier
this month.
The new project launch-
es were few as developers
seem to be monitoring the
market, said Donald Han,
managing director of Ches-
terton Singapore Pte, a real
estate consulting company.
I dont see too many new
launches in July either so
we may see another muted
month.
Among the developers
that began sales of their
projects was Hong Realty
(Private) Ltd, which sold
55 of 100 units marketed
at its Coco Palms project
in the east of the city-state,
according to the URA. RH
Tampines Pte started sell-
ing its condominium pro-
ject with 19 out of 80 units
sold, the data showed.
Under the current new
loan framework, mortgag-
es shouldnt push a bor-
rowers total debt-servic-
ing ratio above 60 percent
and those that do will be
considered imprudent, the
Monetary Authority of Sin-
gapore said in June 2013.
Mortgage loan growth at
7.6 percent in May was the
second-slowest pace since
June 2007, data compiled
by Bloomberg based on
MAS hgures sIowed.
Singapore was the most-
expensive city to buy a
luxury home in Asia after
Hong Kong, property bro-
ker Knight Frank LLP said
in an annual wealth re-
port. Bloomberg
biggest increase since at
least 1999, according to the
agency. Bloomberg
Tourists take photographs in front of the Sydney Opera House. Hotel construction is picking up as the
number of visitors to Australia grows at the fastest pace in at least nine years, sending occupancies in
Sydney to a record and the highest in Asia after Hong Kong and Tokyo.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
Myanmar Summary
Myanmar Summary
Hyundai Launches Car Leasing
Program in Myanmar
Phyo Thu
S
outh Korean auto gi-
ant Hyundai said it
has started for the
hrsL LIme u reusonubIy-
priced car leasing pro-
gram for its brand new
vehicles in Myanmar.
Hyundai Motor Myan-
mar Showroom, which is
LIe omcIuI dIsLrIbuLor oI
Hyundai in the Southeast
Asian country, started the
program this month.
The vehicles that could
be leased through the
program include passen-
ger cars such as Sonata
(saloon), Azera (sedan),
SantaFe (SUV), Elantra
(saloon) and i-30 (hatch-
back), as well as 12-seater
van H1 (starex) which is
suitable both for commer-
cial and family use and
H100 (light truck) which
is used locally for com-
mercial purposes.
Hyundai said the pro-
gram will provide vehicles
directly imported from
SouLI Koreu und oer
comprehensive insurance
for these cars.
There will also be a
round-the-clock cus-
tomer call center, and
the leased vehicles will
be given complimentary
maintenance service by
technicians from the ser-
vice center.
If the leased vehicles
need to be repaired, cour-
tesy car service will be ar-
ranged during the period
of repair for the custom-
ers, the automaker said.
The lease fees will vary
depending on the lease
term, and customers can
choose the type of vehicle
according to their needs.
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Authorities Decision Blots out Import Slip Market
Htun Htun Minn
T
he Road Transport
Administration De-
partment new deci-
sion to allow any vehicles
older than 20 years to be
exchanged has stirred up
the local automobile mar-
ket, industry insiders and
auto dealers say.
The department, which
is under the Ministry of
Rail Transport, changed
its previous policy of ex-
changing cars in an al-
phabetical order (of their
licence plates) to allow
the return of all the cars
that are more than 20
years old, starting from
September 1.
The vehicle registration
plates in Myanmar use
Myanmar alphabets and
numerals and registra-
tions plates are provided
in a Myanmar alphabeti-
cal order.
After the announcement
of the change in policy,
the trading of import per-
mits or slips has grinded
to a halt, auto traders say.
Price of one such slip
was over K10 million
($10,000) even a month
ago.
A car owner receives an
import permit when a ve-
hicle exchange takes place
and the slip allows the
owner to import a new
veIIcIe puyIng Iower LurI
and registration fee.
The trading of import
slips started skyrocket-
ing as more customers
wanted to import cars at a
discounted price.
However, starting from
September 1, registration
fees for cars older than 20
years and subject to the
exchange program will
be reduced by 20 percent,
which has resulted in very
low demand for import
slips.
Locally-assembled cars
will be allowed to be ex-
changed with imported
cars worth lower than
$15,000, registration fees
for which will be reduced
by 20 percent, the minis-
try said.
Vehicles damaged by
uccIdenLs, hre or nuLuruI
disasters will also be al-
lowed to return and they
are to be exchanged with
imported vehicles that
have the same value,
while the registration fees
will be reduced by 10 per-
cent.
The government has
also reduced the registra-
tion fees for taxis by 80
percent and for other ve-
hicles by 40 to 60 percent
since the introduction of
the vehicle exchange pol-
icy in 2014.
The policy to replace
old vehicles was initiated
in 19 September 2011. In
LIe hrsL pIuse veIIcIes
more than 40 years old
were replaced, while in
the second phase, since 8
November 2011, vehicles
between 30 and 40 years
old, and in the third phase
since 12 January 2012, ve-
hicles more than 20 years
were replaced.
A total of 130,518 vehi-
cles have been returned
as of January 6, accord-
ing to the Ministry of Rail
Transport.
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PeopIe wait with oId cars at a vehicIe exchange ofce in Yangon.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
26
Myanmar Summary
Myanmar Summary
AUTOMOBILE
Chinese Consumers Switch Gears
from Cash to Credit for Car Buys
Samuel Shen and
Umesh Desai
I
n a country where
owning a car has long
been a symbol of lux-
ury and success, around
85 percent of Chinese car
buyers still buy cars with
cash.
But people like Chinese
accountant Grace Mi and
her peers in their 20s and
30s are changing the car
hnuncIng gume und ure
the ones catching the at-
tention of global carmak-
ers looking to boost rev-
enue and defend margins
in an increasingly com-
petitive market.
These young people are
willing to buy big-ticket
items like a car on credit
a behaviour unheard of
some 15 years ago in Chi-
na and have led carmak-
ers Lo boosL LIeIr hnunc-
ing units in the mainland.
The push by automak-
ers to steer more people
to buy on credit comes
as part of their broader
eorLs Lo muke up Ior
sliding margins on new-
car sales in China where
more companies are cut-
ting prices to entice buy-
ers. Other key revenue
sources include mainte-
nance and repairs, vehicle
leasing and sales of acces-
sories and parts.
Mi, a 27-year-old ac-
countant in Beijing, did
not have enough cash
on hand to outright buy
her dream car, a Nissan
Sylphy, with a price tag
of about 150,000 yuan
($24,200). Instead, she
saved enough money for
a down payment and took
out a loan.
I didnt want to take a
penny from my retired
parents, Mi said, adding
that owning a car had be-
come increasingly impor-
tant for her personal and
work life. I didnt have
to wait for years to own a
car.
Mi has been repaying
2,500 yuan, or one-fourth
of her monthly wage,
since November for her
Sylphy. While the loan
payments are not small,
she says she doesnt feel
burdened.
Accountants are need-
ed everywhere so Im not
worried about job secu-
rity. I dont think I am en-
slaved by the car loan.
Movi ng to cr edi t
Around 70 percent of
car buyers in the United
States and other devel-
oped countries take out
loans, according to a De-
loitte report in 2012 and
the reason global carmak-
ers are trying to seize on
LIe rIse In uuLo hnuncIng
in China is because the
secLor Is IIgIIy prohLubIe.
TIe hnuncIng unIL oI
Ford Motor Co contrib-
uted nearly a quarter of
the Deerborn, Michigan-
based companys overall
prohL IusL yeur wIIIe rIvuI
GM saw 12 percent of its
prohL come Irom ILs h-
nance unit.
Chinas car market re-
mains primarily a cash
market, but it is starting
to move to credit, John
Lawler, head of Fords
operations in China, told
Reuters in an interview.
Its a demographic and
generational phenom-
enon. Those people who
hnunce curs ure prImurIIy
younger buyers.
Chinas central bank
gave the sector a boost in
early June when it cut the
umounL oI money uuLo h-
nuncIng hrms need Lo seL
aside as reserves in a bid
to stimulate the economy
which is showing signs of
slowing.
Global carmakers have
been IundIng LIeIr hnun-
cial units expansion by
seIIIng o LIeIr Iouns In
the form of asset-backed
securities to beef up their
operations in China. That
frees up money they can
use to lend to Chinese
consumers.
So Iur LIIs yeur, LIe h-
nancing units of Ford,
BMW, Volkswagen AG,
Nissan Motor Co Ltd and
Toyota Motor Corp have
each issued around 800
million yuan ($128.85
million) of asset-backed
securities.
Gr owi ng sector , r ela-
ti ve low r i sk
The countrys automo-
bile association forecast
LIe uuLo hnuncIng Indus-
try to more than double to
525 billion yuan ($84.55
billion) by 2025.
In an email to Reuters,
GMAC-SAIC Automo-
tive Finance Co Ltd, the
hnuncIng joInL venLure
of General Motors Co in
CIInu, suId uuLo hnuncIng
will be integral in facili-
tating sales in the worlds
biggest auto market.
Bankers and analysts say
the chances of car loan de-
faults are limited in China
because the country re-
quires a large down pay-
ment 20 percent for new
cars. Consumers here also
have a higher savings rate
compared with other coun-
tries like the United States.
It is viewed as a future
source of income rather
than a source of default
and losses, said Patrick
Steinemann, co-head of
Asia Industrials Invest-
ment Banking at Bank of
America Merrill Lynch in
Hong Kong.
Indeed, GMs China chief,
MuLL TsIen, suId hnuncIng
has proved a steady busi-
ness in China.
One of the characteris-
tics in the Chinese market
thats very good for the
hnuncIng busIness Is LIuL
default rates tend to be
very low, he told Reuters
in Detroit. So the risks
are pretty good in that
sense. People tend to pay
up, Tsien said. Reuters
Nissan Says to Sponsor City
Football Group in Five-Year Deal
Yoko Kubota
N
issan Motor Co
said it will become
a sponsor of City
Football Group, whose
soccer clubs include Man-
chester City, aiming to
boost its presence over-
seas through sports deals.
NIssun guve no hnuncIuI
deLuIIs Ior LIe hve-yeur
deal with City Football
Group, which is owned by
Abu Dhabis Sheikh Man-
sour and is expanding
globally.
This innovative part-
nership enhances Nis-
sans investment in the
game of soccer which is
a key platform to further
strengthen our brand
globally, Chief Executive
Carlos Ghosn said in a
statement.
Japans second-biggest
car maker also replaced
Ford Motor Co as the
sponsor of European
Champions League soccer
in a four-year deal start-
ing next month.
The City Football Group
took control of Austral-
ian A-League team Mel-
bourne City and plans to
launch a new US team,
New York City, in 2015.
It also bought a stake of
around 20 percent in Ni-
ssan-backed Yokohama F
Marinos in May.
Manchester City won
the English Premier
League in May, their sec-
ond league title in the past
three seasons. Reuters
A customer looks at a car in China.
J
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Nissan ..: .~:~ . ~ ._
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
27
Myanmar Summary
Myanmar Summary
Myanmar Experiences Its Very Own Digital Revolution
Site allows Myanmar people to start their careers online
Kyaw Min
A
fter almost 50
years under a mili-
tary junta, My-
anmar transitioned to a
civilian-led government
in 2011. Since then, My-
anmar people have been
making exceptional pro-
gress on catching up on
the technical revolution
with rapid speed.
Work.com.mm, a ven-
ture of Asia Internet Hold-
ing, has been pushing that
trend forward by enabling
Myunmur peopIe Lo hnd
jobs online a possibil-
ity that was unimaginable
only a few years ago.
A prioritisation on
bringing Myanmar up
to technological speed
with other countries has
enabled those within the
country to access the in-
ternet, something many
have never had before.
This new convenience al-
lows individuals unparal-
leled access to the world-
wide web, including
Work.com.mm, which al-
lows Myanmar companies
and individuals to adver-
tise and apply for employ-
ment opportunities. With
more than 4,000 com-
puny prohIes, Work.com.
mm stands poised to rev-
olutionise the way people
search for jobs within My-
anmar.
Work.com.mm says it
provides ease of access
to Myanmar employers
and applicants who have
turned to searching for
promising online leads.
The features of the por-
tal allow both sides to
post adverts and search
for the relevant opportu-
nities. Further, categories
allow job seekers to nar-
row their criteria down
by city, industry and job
type. There is also a chat
and messaging feature,
which allows for commu-
nication between the vari-
ous parties.
Jort Statema, country
manager of Work.com.
mm, said: We connect
jobseekers with employ-
ers online because we
know LIuL hndIng u job
or a good candidate is not
easy in Myanmar.
Seeing that there was
a really big need for a
job portal and the corre-
spondingly high number
of job seekers proves that
we were correct in 2012
when we saw the poten-
tial for such a site.
With more than 50,000
regular job seekers and
over 80,000 applications
completed since 2012,
Work.com.mm is already
u sIgnIhcunL pIuyer In My-
anmars digital sphere.
At Work.com.mm we
are focused on simply
providing high quality
people high quality jobs,
Statema said.
The site is ranked My-
anmars 39
th
most vis-
ited website according
to similarweb.com (June
2014), beating the lo-
cal LinkedIn. The com-
pany says there are over
90,000 visits per month
and 600,000 monthly
page views.
With over 2,000 new
job posts monthly, and
a national internet pen-
etration rate expected to
reach over 50 percent in
2015, an upward trajec-
tory is all but certain,
LIe hrm suys.
The increasing econom-
ic and political stability
in Myanmar has allowed
companies to recruit the
best and brightest talent
from within the coun-
try more easily than ever
before. The jobs have a
great range, from soft-
ware engineer to driver
to caretaker, and the wide
spectrum of opportunities
allows the vast majority of
jobseekers Lo hnd some-
thing suitable.
According to the compa-
ny, more than 99 percent
of both employers and
job seekers say that they
would use the site again.
With Work.com.mm
we want to empower the
Burmese to make the
most of their new free-
dom. We believe that eve-
ryone should love what
they do, and we believe
one should never give up
or settle for less.
There are always new
opportunities out there. A
new job can be more than
a new paycheck, rather, it
can be a new career and a
new life, Statema said.
Payment Solutions to Support Tourism Sector Needs
2C2P eyes enhanced payment options to Myanmar working with Creative Web Studio
Wai Linn Kyaw
2
C2P, a Singapore-
based payment solu-
tions provider, and
IocuI T hrm CreuLIve Web
Studio will together de-
liver new, improved and
more integrated payment
solutions in Myanmar,
(L-R) Aung Phyo, executive director at Creative Web Studio, Pi-
yachart Rattanaprasartporn, CEO at 2C2P Thailand Pte Ltd, Zin Min
Soe, creative director at Creative Web Studios, Wai Phyo Thu, tech-
nical director at Creative Web Studio and Myo Zaw, chief technology
ofcer at 2C2P.
LIe hrms suId.
The combined capabili-
LIes oI LIe Lwo hrms wIII
deliver enhanced transac-
tion and payment infra-
structure for online sales,
especially in the booming
Myanmar travel and tour-
ism sector, according to
2C2P.
Creative Web Studio
will integrate 2C2Ps on-
line payment solutions
into Myanmar merchants
operations, providing
secure, internationally-
linked payment process-
Ing cupubIIILIes, LIe hrm
said.
Tourists will be able to
transact on merchants
websites using most in-
ternational credit and
debit cards, recognised
and accepted by 2C2Ps
payment gateway.
Wai Phyo Thu, founder
and technical director of
Creative Web Studio said;
We are ready to support
the tourism boom. Better
payment processes and
LecInoIogIes wIII benehL
merchants and raise in-
dustry standards across
the board.
ReseurcI hrm New
Crossroads Asia has
forecast tourist arrivals
in Myanmar will grow
at a Compound Annual
Growth Rate (CAGR) of
25 percent from 2013 to
2020.
The partnership helps
us oer vuIue Lo our purL-
ner merchants, who ben-
ehL Irom zCzP`s soIuLIons
with a faster processing
time, a more secure prod-
uct and the ability to ac-
cept a wider number of
credit cards.
With the integrated
2C2P payment services,
merchants will be able to
process online transac-
tions easily and quickly,
opening up new business
opportunities and facili-
tating greater ease of pay-
ments, 2C2P said.
This is an important
step towards integrat-
ing Myanmar more ex-
tensively with the global
economy. 2C2P will do
its part to modernise the
nations payments infra-
structure, Aung Kyaw
Moe, founder and group
CEO of 2C2P, said.
Creative Web Studio is
one of the leading online
solutions providers in
Myanmar. For example,
they work with the vast
majority of tourism sec-
tor businesses. With their
expertise, relationships
and technical capabili-
ties, they are the perfect
partner to integrate our
payment solutions into
merchants websites, he
added.
Southeast Asia is ex-
periencing an exciting
period of transformation
in the payments sector.
Consumers are increas-
ingly adopting alternative
payment options when
paying for goods and ser-
vices.
2C2P said it processed
over $500 million worth
of online payments in
2013.
.~:.~._..~.......
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..:_~._.
July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
28
INTERNATIONAL AND DOMESTIC FLIGHT SCHEDULE
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 2 3 4 5 6 7 RGN SIN 19:05 23:40 TigerAir TR2826 1 2 3 4 5 6 7 SIN RGN 17:05 18:25 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
*PPleaasee noote thee dday change for the deparrture time too Hong Kongg.
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 13:00 14:00 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
Mann Yadanarpon Airlines
July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
Myanmar Summary
Myanmar Summary
Taiwan, Myanmar Sign
Deal on Tech Cooperation
Aung Phyo
T
aiwan and Myanmar
signed an agreement
on cooperation in
LIe heId oI InIormuLIon
and communications tech-
nology.
The deal is expected to
allow the two countries to
have more interaction in
sectors such as IT train-
ing, enterprise knowledge
sharing, language learning,
enterprise cooperation,
marketing and business
opportunity development,
according to the Taipei
Computer Association,
which signed the deal with
the Union of Myanmar
Federation of Chambers
of Commerce and Indus-
try and second-stage APEC
Digital Opportunity Center
project (ADOC 2.0).
To promote ICT ex-
changes between the two
countries, a Taiwan-My-
unmur excIunge om ce Ius
been established to pro-
mote cooperation projects
by working with ADOC and
UMFCCI, the Taipei Com-
puter Association said.
Vice president of the Un-
ion of Myanmar Federa-
tion of Chambers of Com-
merce U Zaw Min Win told
Taiwanese media that My-
anmar is providing many
subsidies and incentives
and has invited Taiwan
IT players to invest in the
country.
Taiwans Acer has donated
80 personal computers with
the aim of giving a boost to
ICT industry exchanges be-
tween the two countries and
helping upgrade Myanmars
digital technology as it ex-
plores opportunities in the
country.
LG Toots "Redening the
Concept of Smart and Simple
Aung Phyo
S
outh Korean IT gi-
ant LG Electronics
cIuImed Lo redehne
LIe dehnILIon oI u gIobuI
smartphone for Myanmar
customers at the launch
event of LG G3 smart-
phone the successor to
its LG G2 in Yangon.
LG G3, developed under
LIe hrm`s SImpIe Is LIe
New Smart concept, was
touted as empowered with
the best of what current
LecInoIogy Ius Lo oer,
and promised to provide
consumers with a user ex-
perience more ambitious
LIun unyLIIng oered be-
fore by LG.
The smartest innova-
tion in a fast evolving
smartphone market is cre-
ating harmony between
advanced technology and
u sImpIIhed user experI-
ence, said Min Park, man-
aging director of the LG
Electronics Myanmar.
LG G3 is the result of
our eorL Lo ucLuuIIse LIuL
idea into a tangible prod-
uct. And we are extremely
pleased with the result.
- 5.5-inch Quad HD display with 538ppi with four times the resolution of HD and
almost two times higher resolution than a Full HD display
- 13MP OIS+ (Optical Image Stabilizer Plus) camera with a Laser Auto Focus that
can shoot sharp images
- PoIIsIed meLuIIIc skIn on LIe reur cover LIuL Is IIgILweIgIL und hngerprInL-prooI
- Floating Arc form factor and Rear Key
- Redesigned graphic user interface (GUI)
- Chipset: Qualcomm Snapdragon 801 (up to 2.5GHz Quad-Core)
- Display: 5.5-inch Quad HD IPS (2560 x 1440, 538ppi)
- Memory: 16/32MB eMMC ROM / 2/3GB DDR3 RAM / microSD slot (128GB
max)
- Camera: Rear 13.0MP with OIS+ and Laser Auto Focus / Front 2.1MP
- Battery: 3,000mAh (removable)
- Operating System: Android 4.4.2 KitKat
- Size: 146.3 x 74.6 x 8.9mm
- Weight: 149g
- Network: 4G / LTE / HSPA+ 21 Mbps (3G)
- Connectivity: Wi-Fi 802.11 a/b/g/n/ac, Bluetooth Smart Ready (Apt-X), NFC,
SlimPort, A-GPS/Glonass, USB 2.0
- Color: Metallic Black, Silk White, Shine Gold, Moon Violet, Burgundy Red
- Other: Smart Keyboard, Smart Notice, Knock CodeTM , Guest Mode, etc.
Highlights
Key Specifcations
Ooredoo and Khan Academy Announce
Myanmars First Translate-a-thon
Event expected to make a big range of educational material available in Myanmar
Kyaw Min
O
oredoo Myanmar
announced that it
has teamed up with
the Khan Academy Myan-
mar to help make the lat-
ters wealth of educational
material available across
Myanmar.
The Khan Academy My-
unmur Is u noL-Ior-prohL
organisation that aims to
change education for the
better by harnessing tech-
nology to make a world-
class education available
free to anyone.
An extensive library of
education resources, in-
cluding interactive chal-
lenges, assessments and
videos are available for
students, coaches, parents
and teachers.
Ooredoo said with its
3G network, the potential
exists for millions of new
internet users to leverage
the comprehensive sylla-
bus of the Khan Academy
to access further education
across the country.
The free library of educa-
tional resources includes
6,000 videos covering sub-
jects such as: maths, sci-
ences, economIcs, hnunce
and history. The videos
currently receive 10 mil-
lion views every month
from students around the
world.
However, one challenge
that needs to be overcome
to support this initiative
is the translation of large
volumes of the Khan Acad-
emys content into Myan-
mar language.
The team behind Oore-
doos IdeaBox initiative
has set about overcoming
this through the announce-
menL oI Myunmur`s hrsL
ever translate-athon, to
be IeId uL Ooredoo`s om ces
in MICT Park on August 9.
The event will call upon
bi-lingual volunteers from
all walks of life to come to-
gether and volunteer their
Saturday in order to trans-
late as many Khan Acad-
emy videos into Myanmar
language as possible.
We believe our services
can help enable human
growLI LIrougI uordubIe
and easy mobile access,
and this includes increas-
ing access to education for
all across the country, an
Ooredoo spokeswoman
said.
By collaborating and
coming together, our vol-
unteers have the power
Lo posILIveIy Inuence so
many lives, she added.
Those willing to volun-
teer for the project were
asked by Ooredoo to sub-
mit a short video transla-
tion to www.translatea-
thonmyanmar.org.
The event is being organ-
ised as a competition with
a number of prizes being
oered by Ooredoo.
Ooredoo, with its new network, aims to bring access to educational
resources to Myanmar people.
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July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
Coca-Cola's Celebration of the 2014 FIFA World Cup
Waso Robe donation ceremony of Ooredoo
Ooredoo delegates make a libation at the event. Ooredoo Audience listen to religious sermon. Ooredoo Audience at the event. Ooredoo
People participate in the event. Coca-Cola Winners at the game program. Coca-Cola
Winners at the game program. Coca-Cola Winners at the game program. Coca-Cola
Participant at the game program. Coca-Cola
Singer performs at the event. Coca-Cola
Telenor Myanmar 5
th
Net Monday @ Dagon University
Guest speakers at the event. Telenor A student asks a question at the event. Telenor
Peter Furberg, ceo of Telenor Myanmar, answers a question.
Telenor
Peter Furberg gives a present to Dr Hla Htay, Dagon Uni-
versity Rector. Telenor
Ko Zaw Tet Aung, local Wikipedia representative, re-
ceives a present. Telenor
Net Monday session. Telenor
July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
ENTERTAINMENT
31
Inle Lake: The Predictable and The Unknown
T
o one such as me, from a
place such as Australia,
any body of water bigger
than the local swimming pool
requires as much attention as
I can muster. Lakes, rivers,
streams all remind me of
something distinctly lacking
in the Australian experience of
bit-wet-things. While its true
to say that Australia is one of
the driest places in the world,
its also fair to say that parts of
the country do not qualify for
that title, particularly at certain
parts of the year. But not the
great south of the great south-
ern land, the place where there
are rules specifying what day
of the week, and at what time,
you were allowed to water your
garden.
So its no surprise to me that
Inle Lake and the land around
it are simply staggering for the
sense of breadth, depth and
verticality of it all. Its big, its
really big and its really wet.
The very size of the place is
enough to drive a man to drink.
Unlike Bagan, Inles place to
be Is conhned uImosL soIeIy Lo
Nyuang Shwe, although there
are a couple of other places one
could go.
Sitting at one end of the lake,
between each side of the moun-
tains at the end of a canal,
Nyaung Shwe, once outside of
the tourist main drags seems
mucI more IIke u sIeepy hsI-
ing freight town than it does
the backpacker go-to point for
anyone looking to check out the
lake.
If you go to Inle Lake youre
going to see the lake; that much
is certain. Its more a question
of what to do, when, where and
how. The simple questions of
life.
Guest houses, hotels high
and low end and resorts are
all available to the discerning
traveller. However, I might
suggest that if you go for stay-
ing at a hotel on the lake you
David Ross
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lock yourself out of the experi-
ence of being near a lake but
not on a lake and therefore able
to go places and do things.
Nyaung Shwes full of in-
teresting surprises, not all of
which are for the tourist in
you; like the roller rink fre-
quented by some of the locals
with bright lights and spinning
wheels. A boat trip on the lake
involves the predictable, the
unpredictable and the wholly
unknown.
Certain points on the boat
trip bring to mind the phrase
exit through the gift shop, but
rest assured, no one forces you
to buy anything and that you
are the one who is in control.
They take you to the weaver
they expect you to buy a scarf,
they take you to the black-
smith they expect you to buy a
bell, they take you to the boat
shopthey expect you to buy a
boat? Well, look at a boat, and
buy a model of a boat. Same
story with the cigar shop or the
silversmith.
Not that you have to buy any-
thing, you could do as we did,
sit and drink tea and watch the
locals play a game of carrom
something which Id never seen
before but bears a remarkable
resemblance to billiards.
They take you to the predict-
able places like the Jumping
Cat Monastery; only thing
about this place is the startling
lack of cats, jumping or other-
wise. Rather, they seemed to be
sitting, sleeping or in a general
state of doing not much, not
now.
Then theres the rotating
market, round and round it
goes, between the towns or
on the lake, you can ignore
the people selling the trinkets
and concentrate on stoop-
ing over as you tower above
everyone doing their morning
shopping. There are interest-
ing things, but most of its the
same old unless youre doing
your weekly shop theres not so
much a need for buying.
However, In Dein, a rather
unknown and unheard of
spot, was the highlight of the
trip. This one takes a bit of
wrangling as most of the boat
guys wont want to take you
because its hard. Maybe
theyll try and charge extra for
it but so long as your wrangling
of prices is good, and youve
already got them down in price,
an extra K1000 is worth the
expense. Its only $1 after all.
Sometimes the journey is
more important than the
destination, sometimes at the
destination a journey awaits. At
In Dein the journey is as much
an experience as is the destina-
tion itself.
They take you up one of the
canals (there are two), up a se-
ries of what might be described
as levies or weirs built from
what seemed to be sandbags
and bamboo, defying modern
expectations of whatll keep the
water in check.
Between each weir and for
the purposes of this lets call
them that a small V-shaped
gate narrow enough for one
boat at a time, and only the
thin V-shaped things they drive
on the lake. Gun the engine
and go, up, over and down.
Ready for the next one. Take
the twisting bends of the canal
and eventually youre in In
Dein. Not that there are any
signs, eventually you just come
to the dock conveniently placed
next to some stalls selling more
of the same.
Cross another canal on a
bridge, walk through town, past
the market and over another
bridge. There youll start seeing
the signs of In Deins drawcard,
the hundreds of stupas that sit
quite passively everywhere in
and outside of town. Some just
seem to be in the backyard of
houses, while others sit quite
forgotten on hills and outcrop-
pings out the back of town.
If youre game enough to walk
the walk under the roof that
covers your path up the hill you
cun hnd yourseII uL LIe SIwe
Indein Pagoda, something akin
to the heart of the stupa build-
ing space that is the town.
From there you can have
some stunning views down the
hill, of the generations upon
generations of tumbledown
brick spires slowly sliding
towards the lake; while on the
other side youll get a stunning
view of the hills and mountains
out of the back of town.
If you were to take just a
little bit more of a walk, once
youre at the bottom of the hill
you cun hnd u seL oI someLIIng
that might qualify as stairs, so
long as youre not judging by
a strict criteria. At the top of
those stairs, on something akin
Lo u coIumn oI eurLI you`II hnd
stupa, one young and the rest
very old and an incredible view
of the Shwe Indein and the rest
of the town around you.
Not that anyone would point
you in the right direction, its
in your hands. The journey is
always in your hands.
Five golden Buddha statues, each covered with layers of gold leaf, at Phaung Daw Oo Pagoda.
Inle Lake's Indein Pagoda, where hundreds of ancient ancient stupas stand surrounded by forest.
July 24-30, 2014
Myanmar Business Today
mmbiztoday.com
32