Myanmar Business Today - Vol 1, Issue 41 PDF

MYANMARS FIRST BILINGUAL BUSINESS JOURNAL www.mmbiztoday.
com November 14-20, 2013 | Vol 1, Issue 41

Myanmar Summary
Contd. P 6...(\B)
Iconomy to Grow 6.Spc; Inution Poses Risk
World Bank releases frst Myanmar Economic Monitor
M
yanmars economy is
set to grow 6.8 percent
In zo1-1q hscuI yeur
and rise further to 6.9 percent in
the medium-term, banking on
rising gas production, increased
trade and stronger performance
in agriculture, the World Bank
(WB) said in a report last week.
The recently-opened South-
east Asian country registered
Kyaw Min & Sherpa
Hossainy
a strong growth of 6.5 percent
in 2012-13, driven mainly by
strong performance in gas pro-
duction, services, construction,
foreign direct investment and
commodity exports, the WB
said.
The stronger growth is not
a surprise, Tina Singhsacha,
chief representative, Myanmar,
Standard Chartered Bank, told
Myanmar Business Today.
The country is currently
enjoying its reform dividend.
Investments, infrastructure
projects and increased trade
will help to boost growth, Tina
said.
Although the outlook in the
short to medium term remains
positive, there are risks both
on the domestic as well as exter-
nal fronts, the bank said.
Internal risks to the outlook
include the challenge of main-
taining the reform momentum,
while externally, a slowdown in
Chinese domestic investment Contd. P 6...(\B)
UMEHL in Legal
Tussle with F&N
T
he Union of Myanmar
Economic Holdings Ltd
(UMEHL), a military-
backed conglomerate, said it
has initiated arbitration pro-
ceedings against Singapores
property and drinks conglom-
erate Fraser and Neave (F&N)
Ltd over their joint venture
brewery.
TIe scum e Is seen us u LrIuI oI
the business climate in Myan-
mar for international companies
at a time when rapid reforms
have enticed foreign investors
and western governments to
the former castaway country.
Following the post-isolation
changes, this dispute has led
to a debate in the international
media about a lack of legal pro-
tection for foreign investments.
In a rare public statement last
week, UMEHL said the case is
not about investment laws in
Myanmar or how foreign inves-
tors are treated, describing the
concerns and assumption of
politicisation as erroneous.
We know it will serve the
interest of some parties to
politicise the dispute, but doing
so does no justice to the case or
to anyone interested in invest-
Shein Thu Aung
Contd. P 8...(\MLHL)
and a decline in global commod-
ity prices would hurt Myanmar,
the WB said in its Myanmar Eco-
nomic Monitor (MEM) report.
SourIng InuLIon couId uIso
dash the hopes of this impres-
sive growth, which surpasses
the average annual expansion
of 5.1 percent expected in
LIe ASEAN regIon. nuLIon
has been on the rise in recent
months, reaching 7.3 percent in
August, on account of increas-
ing food and housing rental
costs, the bank said.
nuLIon Is currenLIy Iow,
buL LIere ure InuLIonury rIsks.
ExLernuI InuLIon Ius been
Labourers work at a construction site in downtown Yangon. Myanmar registered an impressive 6.5 percent growth in 2012-13, thanks to a
strong performance in construction, services and gas production, the World Bank said in a report last week.
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November 14-20, 2013
Myanmar Business Today
www.mmbiztoday.com
2
LOCAL BIZ
Myanmar Summary
Contd. P 12...(\S)
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Board of Editors
Editor-in-Chief - Sherpa Hossainy
Deputy Editor - Oliver Slow
Reporters & Writers
Sherpa Hossainy, Oliver Slow,
Kyaw Min, Shein Thu Aung, Phyu Thit Lwin,
Htet Aung, Su Su, Aye Myat
Art & Design
Zarni Min Naing (Circle)
DTP
May Su Hlaing
Translators
Shein Thu Aung, Phyu Maung
Advertising
Tay Zar Zaw Win, Seint Seint Aye, Moe Hsann Pann
Advertising Hotline - 09 7323 6758
Managing Director
Prasert Lekavanichkajorn
pkajorn@hotmail.com
Email
Editor - sherpa.hossainy@gmail.com
Special Publications - oslow99@gmail.com
Advertising - sales.mbtweekly@gmail.com
Designer - zarni.circle@gmail.com
Phone
Editor - 09 42110 8150
Deputy Editor - 09 3176 9529
Designer - 09 7310 5793
Publisher
U Myo Oo (04622)
22A Kaba Aye Pogoda Rd, Bahan Township,
Yangon, Myanmar.
Tel: 951-2301568, 951-2301569, 951-2301570
Fax: 951-8603288 ext: 007
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Subscription & Circulation
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09421085511
US Should Update Myanmar
Blucklist: HRW
T
he United States
government should
ensure that remain-
ing sanctions on Myan-
mar are kept up-to-date
on human rights abusers,
Human Rights Watch
(HRW) and 36 other
organisations said last
week in a joint letter to
President Barack Obama.
The Obama administra-
tion should move quickly
to revise the Treasury
Departments list of in-
dividuals and companies
burred Irom IuvIng h-
nancial or business ties to
the United States by both
adding names of rights
abusers to the list and
setting clear and public
criteria for removal from
the list, HRW said in a
statement.
Phyu Thit Lwin As American and
other investors move
into Myanmar, they need
up-to-date information
so they wont risk becom-
ing partners with people
tainted by serious human
rights abuses and cor-
ruption, said Lisa Misol,
senior business and hu-
man rights researcher at
Human Rights Watch.
The US government
should update the sanc-
tions list to clearly identify
the people and companies
investors need to avoid.
Since 2012, the US gov-
ernment has waived most
sanctions on Myanmar in
response Lo reIorm eorLs
by the government of
President Thein Sein. The
US has kept in place the
targeted sanctions that
block certain individuals
or companies from any
dealings with Americans
and freeze their US as-
sets, based on their ties
to the military junta that
ruled Myanmar until 2011
or their record on human
rights, corruption, or
arms trading with North
Korea. However, despite
changes in Myanmar,
the list has remained es-
sentially unchanged since
2009.
For instance, the list
should include Brigadier
General Tun Tun Naung,
a military commander
whose troops carried out
serious rights abuses and
violations of international
humanitarian law against
ethnic Kachin civilians,
including the indiscrimi-
nate shelling of the town
of Laiza in January,
Contd. P 12...(\S)
Women waIk pass a waII with grafti weIcoming US President Barack Ubama on a street side in Yangon. The US administration was reIuctant to expand the
sanctions list at a time when it was establishing relations with the Thein Sein government and it chose instead to give priority to positive incentives for reform-
ers, unnamed ofciaIs toId the AP.
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LOCAL BIZ
Myanmar Summary
Contd. P 5...(AMCHAM)
www.mmbiztoday.com
AMCHAM's Myunmur Chupter to Puve the Wuy Ior LS Investors
Oliver Slow
W
hen President
Obamas cav-
alcade rolled
through Yangons streets
in November last year, it
was the clearest indica-
tion to date that the US
wus suLIshed wILI LIe ruIL
of economic changes hap-
pening in the country.
As relations between the
two countries continued
to thaw, President Thein
SeIn mude LIe hrsL vIsIL by
a Myanmar head of state
in almost 50 years earlier
this year to the US, one of
LIe hercesL crILIcs oI LIe
former military regime.
Americas business
community too has taken
notice as multinationals
such as Coca Cola and
General Electric began
operations in the formerly
isolated state, while many
US-based small and me-
dium enterprises (SMEs)
predominately in the
service industry opened
om ces In Myunmur.
As part of this increased
interest, the American
Chamber of Commerce
(AMCHAM) recently
announced the opening
of its Myanmar chapter,
in order to help US
companies navigate the
sometimes murky waters
of operating a business in
Myanmar.
Interest has been huge,
Judy Benn, executive direc-
tor of AMCHAM in Thai-
land and who is assisting
in setting up the Myanmar
chamber, told Myanmar
Business Today.
We have already signed
up 60 companies today
and my expectation is
that we will have close to
one hundred [by the end
of] this month.
Benn added that the
chamber has attracted a
range of companies from
large multinationals and
Myanmar companies that
represent US Products,
for example Ford and
General Motors dealer-
ships, to companies in
Myanmar that are run by
returnees, or repats, who
had previously lived in
the US.
The aim of AMCHAM
Myanmar, Benn says, is
to help companies learn
about how to do busi-
ness in the country, with
particular reference to
learning about certain
regulations and if there
are any changes in those
regulations, as well as the
networking element, an
area Benn says is crucial
for people newly arriving
in the country whether to
do business or recruit or
gain useful information.
One of the chambers
hrsL gouIs Is Lo udvocuLe
a Chamber of Commerce
law with the Myanmar
government, which would
allow it to become an
independent American
Chamber of Commerce
in Myanmar, something
which is likely to further
ease the situation for US
businesses in the country.
In June, the US gov-
ernment temporarily
suspended all remaining
economic sanctions
against Myanmar in
light of the reform taking
place in the country, but
some US companies have
complained that since
these sanctions have not
been lifted permanently
something the EU has
done US companies
are being left behind by
companies from other
countries as some doubt
still exists due to the sanc-
tions not being entirely
lifted.
However, Benn believes
that US companies are
becoming more and more
conhdenL LIuL LIe sunc-
tions will soon be lifted
entirely.
The sanctions have
The American Chamber of Commerce in Myanmar is aiming to heIp the US companies do business in the recentIy-
opened country.
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www.mmbiztoday.com
LOCAL BIZ
4
Lower Hoose Pusses New Mediu Bill
Oliver Slow
T
he Lower House of My-
anmars parliament last
week approved a new
media bill as part of its bid to
promote media development
within the country.
The details of the bill have
not yet been revealed as it has
now been passed to the Upper
House for approval, but the new
bill is expected to open an op-
portunity for those moving into
the media industry.
When announcing the new
bill, the Lower House stressed
the need for professional ac-
countability when it comes to
online media.
Myanmar began making
amendments to media in the
country in 2011 as the country
began to open up. In August
2012, the Press Scrutiny Board
was abolished, meaning that
print media was no longer
subjected to pre-publication
Myanmar Summary
A man reads the newspaper outside his home in Yangon.
censorship, while earlier this
year, the government made it
possible for private daily news-
papers to become available
and since then 31 private daily
newspapers have been granted
permission for publication.
The TV industry has begun to
change too. Earlier this year,
formerly underground dis-
sident group Democratic Voice
of Burma, was given permission
to begin operations within the
country.
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Thui Phurmu to Ixpund
Myunmur Presence
T
hailand-based pharma-
ceutical and consumer
IeuILI hrm Megu IIes-
ciences Plc is planning to
expand its Myanmar presence
with a new warehouse to store
pharmaceutical and consumer
producLs, u Lop compuny om cIuI
was quoted as saying in the Thai
media.
The expansion will cost be-
tween $100,000 and $190,000.
The companys chief executive
Vivek Dhawan told Thai media
LIuL LIe hrm wIII propose Lo
build a 10-acre warehouse to
the Myanmar government in
LIe hrsL quurLer oI nexL yeur.
The actual cost will depend on
the price of land and construc-
tion is expected to start by 2015.
The move is part of a bid to
double overall company sales,
both domestically and interna-
tionally, to $400 million over
the next 3-5 years.
Megas sales totalled $195
million last year, with 30
percent revenues coming from
Myanmar, its largest market.
The chief executive said he
is very optimistic about the
Myanmar market as several
multinational companies have
conLucLed LIe hrm ubouL
distributing their products in
Myanmar.
Myanmars pharmaceutical
business via hospital and phar-
macy channels is worth $400
million but has the potential to
double over the next 5-7 years.
Mega set itself up in Myanmar
In 1qq wILI seven sLu. Ls dIs-
tribution operations have since
grown to 27,000 outlets cover-
ing 85 percent of the country
with 1,400 employees.
Mega now distributes phar-
maceutical and consumer
Kyaw Min products for 31 companies from
Thailand and abroad including
Osotspa, Johnson & Johnson
and Nestle.
The company operates two
businesses in Myanmar:
Maxxcare, which distributes
pharmaceutical and consumer
goods for outer brands; and
Mega We Care, its own food
supplement brand.
Mega was established in
Thailand 30 years ago. Today
it operates in 29 markets
worldwide.
The company also manu-
factures pharmaceutical
and healthcare products in
Australia.
Myanmar Summary
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LOCAL BIZ
5
Myanmar Summary
From page 3...(AMCHAM)
www.mmbiztoday.com
Yooths Need Vocutionul Skills us Imployment Opportonities Increuse
Htet Aung
D
espite a likely in-
crease in aid from
foreign countries
in employment in the
country, Myanmars
youths should be given the
opportunity to improve
their vocational skills, ac-
cording to U Kyaw Htwe,
director of Crane Employ-
ment Agency.
Recently, UK Prime
Minister David Cameron
said in a meeting with
Daw Aung San Suu Kyi
that his government plans
to increase its aid in occu-
pation areas in Myanmar,
while other governments
are likely to increase aid
to the country as it makes
tentative steps towards
genuine democracy after
hve decudes oI mIIILury
rule.
Though foreign sup-
port aid is high, youths
need to have skills in or-
der to achieve jobs, said
U Kyaw Htwe. As long
as foreign investors con-
tinue to begin ventures
in Myanmar, more and
more job opportunities
will be created. The youth
of Myanmar must be able
to perform to the levels
expected in order for
them to gain new jobs. So,
starting from now, youths
should attend vocational
courses in order to learn
the skills required, he
added.
U Kyaw Htwe added that
jobs need to be created in
been lifted [temporarily]
at this point and I think
most companies are
conhdenL LIuL LIey wIII be
lifted permanently in the
neur IuLure und you hnd
companies are willing to
make the investment in
order Lo be LIe hrsL InLo
the market and capture
these opportunities,
Benn said.
At the launch of the
chapter, which was hosted
at Yangons Chatrium
Hotel on October 31, it
was revealed that the US
Ambassador to Myanmar
Derek Mitchell will be
the honorary chair of the
chamber.
The launch of AM-
CHAM Myanmar is a
sIgnIhcunL mIIesLone In
US commercial engage-
ment and I congratulate
all of those involved. I
look forward to a strong
partnership with the new
chapter, Mitchell said.
Despite the Ambassa-
dors role in the chamber,
AMCHAM is private sec-
tor, with funding coming
through memberships,
sponsorships as well as
publications and events
and while there is a
large amount of dialogue
between the chamber
and the government,
particularly with regards
to organisation and in-
formation, the chamber
is able to take its own
approach on many things.
AMCHAM Myanmar
will initially begin as a vir-
LuuI om ce, operuLIng ouL
oI om ces oI one oI LIeIr
partner organisations
wILI some sLu Irom LIe
Thailand chamber taking
IoId oI Myunmur uuIrs,
Benn said.
From page 3...(AMCHAM)
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a vast range of industries,
to take advantage of the
wants of the youths in the
country.
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www.mmbiztoday.com
LOCAL BIZ
6
Myanmar Summary
From page 1...(\B)
From page 1...(\B)
contained amid lacklustre com-
modity prices, but accelerating
growLI couId be InuLIonury
considering limited supply-side
factors such as rental housing.
In addition, the authorities will
need to develop more monetary
tools to help manage money
supply growth to complement
LIe deveIopmenL oI LIe hnuncIuI
system, Tina said.
May Thet Zin, the World
Banks Country Economist
for Myanmar, said: Rising
InuLIon Is uIwuys u cuuse Ior
concern since it hurts the poor
disproportionately, but econo-
mies do sometimes experience
rIsIng InuLIon, especIuIIy wIen
in transition as is the case in
Myanmar.
However, there is no cause
Ior uIurm yeL becuuse InuLIon
remains in single digits in My-
anmar, May Thet Zin said.
Nonetheless, it will be impor-
tant for the authorities to keep
a close eye on the situation so
that it does not get out of hand.
The WB said the various
reforms recently undertaken by
the government and planned
reforms appropriately focus on
improving the environment for
business in the country. These
include the removal of import
and export licensing require-
ments on some 600 products,
the approval of new regulations
on foreign investment, the
granting of licences to private
insurance companies for the
hrsL LIme In o yeurs und LIe en-
actment of the anti-corruption
law, among others.
The MEM said in recent
months the nominal and real
eecLIve excIunge ruLes Iuve
been depreciating, reaching
K975 to one US dollar in July,
which helps to make Myanmars
exports more competitive. Al-
though these indicators appear
to have started appreciating in
August and September, which
could erode Myanmars export
competitiveness, it added.
TIe currenL uccounL dehcIL
increased to 4.4 percent of GDP
in 2012-13, up from 2.4 percent
in 2011-12, due to import lib-
eralisation and lifting of some
exchange restrictions, the WB
said.
The report said the budget
dehcIL decreused Lo .; percenL
of GDP in 2012-13, from 4.6
percent in 2011-12. The 2013-14
budget provides for increased
spending on social sectors,
although the defence budget
remains high.
Gross international reserves
reached $4.6 billion at the end
of 2012-13, equivalent to 3.7
months of imports, up from $4
billion in 2011-12.
Foreign direct investment
in Myanmar had risen to $2.7
billion in 2012-13 from $1.9
billion in 2011-12, the WB said,
In ILs hrsL reporL sInce resum-
ing operations in Myanmar in
January. Most of that invest-
ment went into energy, gar-
ment, information technology
and food and beverages sectors,
it added.
The Myanmar Investment
Commissions (MIC) data shows
un InvesLmenL ow oI $q mII-
lion in September, majority of
them coming to manufacturing,
agriculture, mining, and hotels
and tourism sectors.
The World Banks Myanmar
Economic Monitor looks at
recent macroeconomic devel-
opments, recently implemented
and planned policy reforms,
and includes a special feature
article.
We believe by periodically
bringing most recent economic
The authorities will need to develop
more monetary tools to help manage
money supply growth to complement the
deveIopment of the nanciaI system.
data and analysis on develop-
ment issues to government
policy makers, think-tanks,
civil society and citizens, the
World Bank can contribute to
informed debates and decision
making on development policy
within a rapidly changing My-
anmar, said Kanthan Shankar,
World Bank Country Manager
for Myanmar.
By producing the Myanmar
Economic Monitor, we hope to
contribute towards providing
data and information on recent
economic and policy develop-
ments in the country as well
as outlook going forward that
vurIous groups wIII hnd useIuI,
Khwima Nthara, WB's senior
country economist for Myan-
mar, said.
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Foreign Cos to Set Up
Animal Food Factories
F
oreign companies are ar-
ranging to set up animal
food manufacturing
factories in a bid to tap the local
livestock market and alleviate
the livestock feed shortage,
IIvesLock und hsIerIes enLrepre-
neurs said.
Netherlands-based feed
conglomerate De Heus, one of
the interested companies, is
aiming to establish a factory in
Myanmar in 2015, said U Win
Kyaing from Myanmar Fisher-
ies Federation.
Currently, Myanmars breed-
ing sector is facing acute short-
age of raw materials to produce
animal food, and the miseries
are compounded by inadequate
transportation infrastructure
and electricity woes which
drIve up LIe prIces oI hnIsIed
products.
IvesLock und hsIerIes In-
dustry insiders say fake animal
Iood Is uIso oodIng LIe murkeL
as entrepreneurs struggle hard
to plug the supply gap.
They said the authorities
should strive to provide protec-
tion against fake animal feed
under the consumer protection
law. At present, Myanmar
Phyu Thit Lwin
imports animal foods from Vi-
eLnum Lo IuIhI LIe IocuI unImuI
feed demand.
Some animal feed companies
from Europe are also looking
InLo producIng hsI Ieed Irom
animal waste as it is high in
protein content, livestock and
hsIerIes enLrepreneurs suId.
Myanmar Now
SEAG-ready
O
rgunIsers Iuve hnIsIed LIe consLrucLIon oI venues und
facilities to be used in the 27
th
Southeast Asian Games,
authorities said.
A total of 25 venues were completed and spruced up for the
December 11 to 22 games, including the two main arenas
Wunna Theikdi and Zeyar Thiri where the majority of the 33
sports will be played.
The Wunna Theikdi, a stadium that can seat 30,000, will
hold the opening and closing ceremonies expected to be at-
Lended by ubouL ,qoo uLIIeLes und q,ooo sporLs om cIuIs In
the capital Nay Pyi Taw.
WILIIn LIe compIex ure LIe Lruck und heId ovuI, swImmIng
pool and three indoor stadiums.
Adjacent to the Wunna Theikdi is the Sports Village, an ar-
ray of single-storey hostels built to accommodate the athletes.
Aye Myat
Myanmar Summary
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F
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7
Myanmar Summary
LOCAL BIZ
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Golden Myunmur to Ixpund Rootes This Month
Su Su
Private airline Golden Myan-
mar will expand its domestic
and international routes with
Airbus planes this month,
sources with the airline said last
week.
The carrier aims to capitalise
on the impending tourist boost
in the wake of the 40-day count-
down for the 27
th
SEA Games
in the country, which will see
an increase in the arrival of
visitors.
The airline will start operating
to new destinations with new
XY-AGT A320 Airbus planes
from November 15.
Golden Myanmar will also op-
erate a new Mandalay-Imphal
cIurLered IgIL on November
21 ahead of the Manipur Sangai
Festival next month, according
Lo omcIuI medIu reporLs.
After the festival, scheduled
for November 21 to 30, Golden
Myanmar will operate regular
IgILs Lo mpIuI usIng A-zo.
The new air route operation
between India and Myanmar
is part of a bilateral air services
agreement signed during Indi-
ans Prime Minister Manmohan
Singhs visit to Myanmar last
year.
Meanwhile plans are under
way to operate a bus service
between Imphal and Mandalay.
Myanmar Summary
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Golden Myanmar, established
in 2012, started operating in
Yangon-Singapore, Yangon-
Bangkok and Mandalay-Yangon
routes daily with XY-AGS A320
Air Bus since January.
Myanmars domestic airlines
are drawing interest from inter-
national and regional aviation
giants who are vying to secure
sizeable shares in Myanmars
lucrative and growing aviation
market. Japans All Nippon Air-
ways in September announced
that it will buy a 49 percent
stake at local carrier Asian
Wings Airways.
A total of 24 international and
seven domestic carriers are cur-
rently operating in Myanmar
following its opening-up two
years ago.
Indonesiun Mining Iirm to Invest
$qoom in Myunmur Plunts
I
ndonesias state-owned coal
miner PT Tambang Batu-
bara Bukit Asam plans to
build steam power plants worth
$900 million in Myanmar in the
next few years and has invited
a local partner to work on the
project, according to Indone-
sian media reports, quoting the
hrm`s hnunce dIrecLor AcImud
Sudarto.
Sudarto said the Jakarta-
based company had inked a
deal with strategic partners
in Myanmar, a country that is
rapidly liberalising its economy
and opening up investment to
foreign companies.
We have engaged with a local
company there, but we cannot
reveal the name yet, he was
quoted as saying in Jakarta
Globe.
AcImud suId LIuL Ior LIe hrsL
phase of the deal, Bukit Asam
would develop a 2100-mega-
wuLL couI-hred power pIunL,
before moving on to building
another plant double the size.
Kyaw Min He said the estimated the
cosL Ior LIe hrsL pIunL wus $o
million to $450 million. The
second plant would cost up to
$450 million to construct.
TIe hnunce dIrecLor suId
the project would be funded
through either internal cash or
bank loans from Indonesia and
Myanmar.
Bukit Asams coal will be used
for those power stations as
Bukit Asam will also be export-
ing coals to Myanmar.
The miner also plans to spend
up to $400 million in capital
expenditure in 2014, up from
this years $192.86 million.
The company, which was
Iounded In 1qo, suered u
41 percent drop in earnings
in the January-to-September
period on lower sales and rising
expenses.
Bukit Asams main export
destinations are Taiwan (17
percent), India (14 percent),
China (9 percent), Malaysia (8
percent), Japan (3 percent) and
Vietnam (2 percent).
Bukit Asam also sells some
of its coal output, of which
the bulk is low-ranking sub-
bituminous and lignite to the
domestic market.
The company has also been
involved in businesses beyond
coal, tapping into industries
that consume coal, such as
electricity utilities.
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Tambang Batubara Bukit Asam
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F
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www.mmbiztoday.com
LOCAL BIZ
8
Myanmar Summary
From page 1...(\MLHL)
ing in Myanmar, Myint Aung,
deputy managing director of the
company, said in a statement.
The fact is that we have a joint
venture agreement that pro-
tects our rights in the event of a
default by F&N. The arbitration
speaks for our desire to adhere
to proper and due process, he
added.
Myint Aung said: We believe
that allowing parties to exer-
cise their contractual rights,
including the right to arbitrate
a dispute, will strengthen and
not weaken foreign investors
conhdence In Myunmur.
UMEHL, one of two vast hold-
ing companies linked to Myan-
mars military, claimed a right
under a joint venture agree-
ment to buy F&Ns 55 percent
stake in Myanmar Brewery Ltd
after F&N defaulted on a term
in the agreement, according to
the statement.
UMEHL didnt reveal the
term on which it said F&N had
defaulted, but a Reuters report
said it was related to the change
of shareholding structure of
F&N, after F&N was taken over
by companies linked to Thai bil-
lionaire Charoen Sirivadhanab-
hakdi earlier this year.
No public statement had been
issued by F&N retorting UME-
HLs announcement at the time
oI hIIng LIIs reporL, Iowever,
F&N earlier in August said that
there was no basis for UMEHLs
action and it intended to vigor-
ously contest the claim. The
matter is in the hands of the
companys lawyers, it said.
UMEHL is on the Specially
Designated Nationals List of
the US Treasury. Assets of in-
dividuals and companies on the
list are blocked and US persons
are generally prohibited from
dealing with them.
Myanmar Brewery Ltd was
set up in 1995 by UMEHL with
Heineken NV through its Asian
urm, AsIu PucIhc BrewerIes Ld
(APB), which transferred its 55
percent stake to F&N in 1997.
F&N held a 50 percent stake
in APB. However, in December
last year, it divested its entire
shareholding in APB. Following
LIIs, on Junuury o, un oer by
TCC Assets part of Charoens
business empire for all the
shares in F&N turned uncondi-
tional, resulting in TCC Assets
and concerning parties control-
ling more than 50 percent of
F&Ns issued capital.
On April 24, UMEHL exer-
cised its rights under the JV
agreement to serve notice on
F&N to sell its stake to UMEHL
or its nominee. It served notice
of arbitration on September 9.
The arbitration proceed-
ing could take months and is
likely to be held in Singapore, a
Reuters report quoted a source
familiar with the matter as
saying.
Aostruliu to Assist Myunmur in ReIorm Process
A
ustralia will assist
Myanmar in its reform
process, getting involved
in a wide range of sectors in-
cluding education, health and
political reforms, a top Austral-
Iun governmenL omcIuI suId IusL
week.
Governor General of Com-
monwealth of Australia
Quentin Bryce, who was on a
visit to Myanmar last week,
pledged Australias assistance
for Myanmars maternal and
child welfare undertakings
and farm sector development,
encouraging big investment by
Australian entrepreneurs.
During her meeting with
President Thein Sein she of-
fered to provide scholarships to
university students, technical
assistance for building capacity
of lecturers and teaching aid in
basic education schools. She
uIso oered Myunmur uccess Lo
modern teaching methods and
to build schools in rural and
border areas of the country.
Phyu Thit Lwin The pair also discussed ex-
panding womens employment
opportunities and womens
participation in the peace mak-
ing process. They also touched
on eorLs Ior reucIIng UN MII-
lennium Development Goals.
On Tuesday last week, Presi-
dent U Thein Sein also met with
visiting Governor of New
South Wales (NSW) of Com-
monwealth of Australia Marie
Bashir.
The discussion focused on
promoting cooperation between
Myanmar and NSW, scholar-
ship programmes for Myanmar
medical students to study in the
province and aid for Myanmars
health and education.
Prior to the meeting, My-
anmar and New South Wales
signed a memorandum of un-
derstanding between Yangons
Universities of Medicines-1
and 2 and University of Sydney
and Sydney Medical School on
cooperation in the education
sector.
The MoU covers cooperation
in promoting teachers skill,
students exchange program,
doing research with universities
and exchange of information
and stationery.
In July, Senator and Foreign
Minister of the Commonwealth
of Australia Bob Carr visited
Myanmar, pledging A$100 mil-
lion grant aid to the country for
its education reform.
Myanmar Summary
A security guard waIks past a Iogo of Fraser and Neave Iimited at its ofce buiIding in Singapore.
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LOCAL BIZ
9
Myanmar Summary
www.mmbiztoday.com
Toor Goides Cull Ior Iixed uily Rute
A
s Myanmars tour-
ism high season
kicks into gear,
a daily tour guide price
should be set, according
to local tour guides.
We should not experi-
ence tour guide discrimi-
nation, and tour guide
services should be set the
same, said Ko Naung, a
Yangon-based tour guide.
In some places, one tour
guide might charge $20 a
day, while another could
be $30-$35 a day. If regu-
lation of this happens,
it will help the tourism
industry to grow, said Ko
Naung, a Yangon-based
tour guide.
Myanmars tourism
high season begins in
early November and, as
LIe counLry`s prohIe us u
tourist destination con-
tinues to grow, tourism
hgures ure IIkeIy Lo reucI
record hgures once uguIn.
Last year, arrivals reached
more than 1 million for
LIe hrsL LIme und uuLIorI-
LIes Iope LIuL hgure wIII
reach 2 million this year.
Htet Aung
U Than Ko, a tour guide
lecturer thinks that the
basic tour guide fee should
be set relative to the tour
guides language abilities.
Myanmar attracts tour-
ists from all around the
world, and French and
Japanese-speaking tour
guides are in particularly
high demand aside from
English.
According to sources in
the tour guide industry,
discussions are underway
with the respective tour-
ism authorities to set a
daily tour guide fee.
Thai-Myanmar Border Trade
Sees $1oom Increuse
Phyu Thit Lwin
B
order trade be-
tween Myanmar
and Thailand has
reached $363 for the
zo1-1q hscuI up unLII
October, an increase of
more than $100 million
from the same period
last year, according to a
source from the Ministry
of Commerce.
There are four border
stations between My-
anmar and Thailand
Tharchilake-Mae Sai,
Myawaddy-Mae Sot,
Kaukthaung-Ranong and
Htee Kee-Sunaron. The
Htee-Kee-Sunaron was
reopened in May this
year, and has seen $32
million pass through in
border trade.
At the border stations,
an estimated $250 mil-
lion is import, while
more than $110 million is
export, leaving Myanmar
wILI u Lrude dehcIL oI
more than $140 million
with Thailand.
Myanmars major bor-
der trade counterparts are
China, Thailand, Bang-
ladesh, India and Laos.
Border trade with China
is the highest, while India
is second.
Myanmar has signed
border trade agreements
with all of its border trade
partners and discussions
are underway regarding
developments such as
border trade stations,
industrial zones and
economic zones, accord-
ing to a relative source
within the Ministry of
Commerce.
Myanmar Summary
With the help of a tourist guide from Myanmar, a Chinese tourist passes through the border checkpoint in Dalou, Xishuangbanna, Yunnan Province.
A
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www.mmbiztoday.com
LOCAL BIZ
10
Ooredoo to Sponsor
Yangon Youth Forums
Phyu Thit Lwin
Q
atar-based Ooredoo,
one of Myanmars two
telecom licence winners,
will sponsor the 1
st
Yangon
Youth Forum, the company has
said in a statement.
The telecom company an-
nounced its $5,000 sponsor-
ship for the two-day event,
which starts on November 22,
at a signing ceremony held at
Park Royal hotel in Yangon.
The forum will be held at Aung
Myay Bon San Shan Monastry,
9 mile in Yangon.
Ross Cormack, CEO of Oore-
doo Myanmar, said: With this
sponsorship, Ooredoo commits
to empowering the youth of
Myanmar by helping promote
large-scale job creation, entre-
preneurship, access to capital
and markets, and the participa-
tion and engagement of young
people in economic and social
development.
We believe young people
should be given chances in life
to educate themselves. Its fan-
tastic to see youth having the
purpose and meaning in their
lives so they feel they have had
LIe cIunce Lo grow und IuIhI
their potential.
The idea of the forum was
mooted by some youth organi-
sations in Yangon in June. The
forum aims to create a youth
network to solve community
issues and strengthen youths
social enterprises. It will select
the youth delegates from Yan-
gon region to attend Myanmar
Youth Forum, and ASEAN
Youth Forum, Asian Youth Fo-
rum and Global Youth Forum.
The topics of discussion at the
forum will include education,
youth opportunities, health and
sports, prevention of narcotic
drugs, IT and media, among
others.
Ooredoo has been involved
in a range of corporate social
responsibility (CSR) activities
since the announcement of its
bid win on June 27. In Septem-
ber, Ooredoo donated $40,000
to the Ministry of Social Wel-
Iure Ior ood-uecLed peopIe
and formed a partnership with
Cherie Blair Foundation for
Women to train 30,000 women
as mobile retail agents. Last
month, Ooredoo announced
its $50,000 sponsorship of the
Special Olympics Myanmar
National Games.
Following its licence win,
Ooredoo said it will invest $15
billion and introduce 3G voice
and data services in Myanmar.
Myanmar Summary
Aung San Suu Kyi to
Visit Australia
M
yanmars opposition leader Aung San Suu Kyi will
muke Ier hrsL vIsIL Lo AusLruIIu In IuLe November.
The democracy icon will attend public events in Sydney,
Canberra and Melbourne and meet members of the Myanmar
community from November 27 to December 2.
oreIgn MInIsLer JuIIe BIsIop hrsL meL Ms Suu KyI In 1qq und
said she was delighted to be able to welcome her to Australia.
Australia has long been a staunch supporter of Aung San Suu
KyI`s eorLs Lo brIng democrucy Lo LIe Burmese peopIe, sIe
said in a statement last week.
Australia and other nations have been gradually easing their
sanctions against Myanmar as the country has allowed greater
political and media freedoms in past few of years.
The Nobel Peace Prize laureate accepted the invitation from
former foreign minister Bob Carr back in June and remarked
that she fondly remembers growing up with the song Kooka-
burra Sat In The Old Gum Tree.
The former political prisoner won a parliamentary seat in April
2012 and she became opposition leader of the National League
for Democracy. AAP
Myanmar Summary
Intl Machinery Industrial Fair This Month
Shein Thu Aung
M
yanmar I ndustrial
Association (MI A)
and Hong Kong-based
Yorkers Trade and Marketing
Service Co Ltd will organise an
industrial expo in Myanmar
this month, exhibition organis-
ers said.
Myanmar I nt'l Machinery
I ndustrial Fair, which has been
dubbed the largest international
industrial event in the country,
will be held from November 15
to 18 at the Myanmar Conven-
tion Centre in Yangon.
The four-day event will show-
case over 220 exhibitors with
400 booths, displaying a range
of state-of-the-art industrial
machinery, related equipment,
accessories. The exhibitors will
also seek local agents and ex-
tend their brands in Myanmar,
organisers said.
TIe exIIbIL prohIe conLuIns
plastics and rubber, printing
and packaging, food process-
ing, electrical and electronic
equipment, machine tool and
automation, tools and hard-
ware, woodworking, building
materials and agriculture
technology.
The pavilions are from China,
I taly, Malaysia, Singapore,
Thailand, Taiwan and I ndia.
Myanmar Summary
M
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Wyne Wyne Pyae, a representative from Yangon Youth Forum shakes hands with Ross Cormack, CEU of Uoredoo Myanmar.
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COMMENTARY
11
Contd. P 12...(Quest)
Myunmur's Qoest Ior Ioreign Investment
In order to realise its long-term growth potential, Myanmar needs massive amounts of foreign investment. What should be done?
Dan Steinbock
D
uring the past few
years, Myanmars
economic reforms
and opening-up policies
have unleashed a rapid
Inow oI WesLern cupILuI.
I n addition to the tradi-
tional Asian investors,
multinational executives
and foreign dignitaries
have been rushing to
Myanmar, which is often
seen as the last frontier of
emerging Asia.
Usually, strong growth
potential translates to
increasing foreign direct
investment (FDI ). While
Inows ure sLeudIIy rIsIng
in Myanmar, the volume
of FDI is still relatively
low.
The question is why?
And what could be done
about it?
Falli ng behi nd
HIsLorIcuIIy, Inows oI
foreign investment in Asia
have steadily expanded,
but there is great varia-
tion within the region and
between countries. While
FDI stocks illustrate
historical trends, FDI
ows descrIbe currenL re-
alities. Both illustrate the
Asian rivalry for foreign
investment.
I n the past three dec-
ades, FDI in Asia has
been a game of three sets
of countries. First, Hong
Kong, China and Singa-
pore accounted for more
than 70 percent of FDI
stocks in East and South-
east Asia in 2012. Another
FDI group comprises
Korea and the ASEAN ti-
gers, including I ndonesia,
Thailand, and Malaysia.
The third group includes
Vietnam, Taiwan, Philip-
pines, Macao, Brunei,
Myanmar, Cambodia and
Lao.
Until the late 1980s,
foreign investment in
Myanmar was one of
the lowest in Asia, less
than $6 million per year,
as measured by foreign
direct investment stock.
As the status quo in the
country began to change,
FDI stocks increased
to $60 million in 1989
and $1.2 billion by the
mid-1990s. Myanmar
surpassed Cambodia and
Laos, but fell far behind
Vietnam.
As reIorms InLensIhed In
2010, there was much talk
about the great potential
for FDI in Myanmar. Cer-
tainly, foreign investment
grew from $1.2 billion to
almost $10 billion, while
FDI stocks as a percent-
age of Myanmars GDP
increased from 15.7 per-
cent to 20.7 percent.
With economic reforms
and opening-up policies,
the FDI stocks climbed
to $11.9 billion last year.
As a percentage of GDP,
however, they have stag-
nated, representing 20.6
percent of Myanmars
GDP last year.
n Lerms oI D ows,
foreign investment in My-
anmar was minimal until
the late 1980s. I t really
Look o onIy uL LIe Lurn
of the 1990s, when the
country attracted more
than $225 million in an-
nuuI D ows - bureIy u
10
th
oI compurubIe ows
in Vietnam.
Until recently, the FDI
performance of Myanmar
and the Philippines has
been relatively even. Last
year, however, Myanmar
fell behind the Philip-
pines, the current growth
leader of Southeast Asia.
What can be done?
Today, FDI is an integral
part of the globalisation of
competition and the glob-
al specialisation of value
chains of multinational
corporations. To identify
FDI opportunities, the
latter focus on global indi-
cators, including business
environment, corruption,
and competitiveness.
I n the new Global
Competitiveness I ndex
(World Economic Fo-
rum), Myanmar is ranked
139th, some 50 places
behind Cambodia, which
at 88th place is ranked
second lowest in ASEAN.
I n the Corruption Per-
ceptions (Transparency
I nternational), Myanmar
is ranked 172nd, along
with Sudan and Afghani-
sLun buL sIgnIhcunLIy
behind Cambodia (157),
I ndonesia (118), and
the Philippines (105).
Further, Myanmar is
ranked only 182nd in the
Doing Business indicators
(World Bank), along with
Congo and Eritrea and
well behind Laos (159),
Cambodia (137), and the
Philippines (108).
At the broadest level,
Myanmar can attract FDI
by enhancing its business
envIronmenL, hgILIng
corruption, and fostering
competitiveness. These
eorLs sIouId be con-
sidered necessary in any
national FDI initiative.
To strengthen com-
petitiveness, the objec-
tive should be to attract
investors primarily with
higher productivity. For
instance, subsidising
electricity rates may of-
fer private gains for the
investor, but improving
LIe emcIency und quuIILy
of the electricity grid will
enhance the productiv-
ity of the entire business
environment.
Myanmar Summary
www.mmbiztoday.com
Contd. P 12...(Quest)
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_. . . . . .~ . . : ~.q . ~.q
.~:~:q...~. ._.:.
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~ q:..,..~:~. q.,
._. ~q.e:.. ~.,.q:.
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._. e _e .~ .~~ .:_. . - e~
,. ~. e... .~:~
,.. _.,.: ~..:..e:..
.:~ ~ ._. ~ ~:.. . .~: .
.:.._.
~~ . . . .:..~ . ~ _., .:
. ~ . . _.:.~ ~ , ~ q .. .
_.....: ~:q~ ~,_..|.
. .~._.~.,~. . _e. . _. . ~.
. . . ~..q ~, ..'.:
' ..e.: q. ._. ~._.:.
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q..._.... ..~.. : ~ .~~
.:._.. ~ ...~ ~..
q~,..'.: '~ .e
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.e qq.~: ~..:..e:.
At the broadest level, Myanmar can
attract FDI by enhancing its business
environment, ghting corruption, and
fostering competitiveness. These ef-
forts should be considered necessary
in any national FDI initiative.
www.mmbiztoday.com
COMMENTARY
12
From page 2...(\S)
Second, the goal should be to
improve the quality of the loca-
LIon In wuys LIuL benehL muny
companies and industries,
noL jusL one or Lwo hrms.
SpecIhc LurI exempLIons
generate market distortions,
whereas improved customs
procedures enhance national
competitiveness.
Also, it is vital to develop
sticky incentives that are tied
to the location rather than the
investor. Granting corporate
tax breaks boosts the race to
the bottom. I n contrast, broad
improvements in the business
environment contribute to
country attractiveness.
Finally, the focus should be
on sustained investment rather
than one-time deals. I f incen-
tives are tied to the total size
of the investment, including
follow-on investments, they
wIII be more benehcIuI Lo LIe
country.
Global FDI stagnati on
Last April, the EU agreed to
lift all sanctions on Myanmar,
while the US suspended sanc-
tions a year before. While these
measures have positive implica-
tions in Myanmar, they come
with new constraints as all
advanced economies cope with
stagnation, lingering recovery,
or worse.
Global FDI is no longer im-
mune to the gloomy growth
prospects worldwide. I n 2012,
LIese Inows pIunged drumuLI-
cally, by a whopping 18 percent.
MosL ImporLunLIy, D ows Lo
developed economies declined
by 32 percent, to a level last seen
almost a decade ago. Europe
alone accounted for two thirds
of the global FDI decline.
urLIermore, D ows Irom
advanced economies have been
supported by liquidity-driven
growth since 2008; record low
interests and non-traditional
monetary instruments. By
spring 2014, this growth is likely
to be reset as the US Federal
Reserve is expected to start the
gradual unwinding of quantita-
tive easing.
That, in turn, means new
downside risks, especially if the
anticipated unwinding of mon-
etary policy stimulus in the US
Ieuds Lo susLuIned cupILuI ow
reversals. I n that case, those na-
tions in Asia that depend on FDI
from the US will take a hit, as
they did in 2008-09. Over time,
the same goes for those nations
that rely on FDI from Europe,
the longer the sovereign debt
crisis continues, or from J apan,
if Tokyo begins the proposed
tightening of its monetary and
hscuI poIIcIes.
While an increasing volume
of the new FDI in Myanmar
comes from advanced econo-
From page 11...(Quest)
From page 11...(Quest)
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Global Competitiveness Index
~q_.,.:.._~. ~, ~q
.,_..~..:..e:..._~.
~ q .,._ ._., .:. ~.,_e . .. :.
.q.q.~,.~:.~ ._.. ~~ .~ _..:.
. .:.~ ~~e~. e_.....~:.
~:..... ~ _e . _.:.~ ~ , ~ q .
. ._. . . . .:.~ . . . ..: .:.
.__e.._.
To strengthen competitiveness, the objective
should be to attract investors primarily with
higher productivity. For instance, subsidising
electricity rates may offer private gains for
the investor, but improving the efciency and
quality of the electricity grid will enhance
the productivity of the entire business
environment.
Workers work at the Vietnam Hoang Anh Cia Iai (HACI) constriction site in Yangon. Myanmar has approved more foreign direct investment in
the past ve months than aII of Iast year.
S
o
e

Z
e
y
a
T
u
n
/
R
e
u
t
e
r
s
Washington-based HRW said.
A leaked 2009 diplomatic
cable from the US embassy in
Rangoon noted that many of
the real perpetrators of human
rights abuses or those who
provIde sIgnIhcunL supporL Lo
the regime are not yet targeted
and that the more than 400
names it had provided had not
been added.
The Specially Designated
Nationals list is maintained by
the Treasury Departments Of-
hce oI oreIgn AsseLs ConLroI.
The Associated Press (AP),
which reviewed the Treasury
Departments online records
in May, found that the Obama
administration had made only
one minor change to the list
between J anuary 2009 and J uly
2012. I t has since added and
removed a few names.
The administration was reluc-
tant to expand the sanctions list
mies in the West, the great
volume of the countrys FDI
has historically relied on other
Asian nations. Even today,
China accounts for about a third
or more of foreign investment
in Myanmar, along with J apan
and Asian tiger economies,
Singapore and South Korea.
TIe more dIversIhed LIe
sources oI LIese D Inows,
LIe greuLer wIII be LIe benehLs
in Myanmar. What is certain is
that, in the near future, the ri-
valry for FDI is about to become
a lot tougher, more complex
and volatile.
Dr Dan Steinbock is the
research director of interna-
tional business at the India,
China and America Institute
(USA) and a visiting fellow
at the Shanghai Institutes for
International Studies (China).
For more, please visit0 http://
www. di ffer enceg r oup. net.
Views expressed here are his
own.
at a time when it was establish-
ing relations with the Thein
Sein government and it chose
instead to give priority to posi-
tive incentives for reformers,
unnumed omcIuIs LoId LIe AP.
New names should be added
to the list in line with a presiden-
tial directive to impose targeted
sanctions on those responsible
for human rights abuses and
who undermine political re-
forms or the peace process with
ethnic minorities in Myanmar,
Human Rights Watch and the
other organizations said.
The administration should
also adopt and publish clear
criteria for deciding who should
be removed from the list,
including a requirement for
those listed to provide a public
accounting of past sanctioned
activity, make restitution to
victims, and cut ties to the Bur-
mese security forces. Suspect
companies should agree to
undergo a full and independent
audit and individuals should
publicly declare their assets.
The US government should
noL Luke unyone o LIe Myun-
mar sanctions list until they
take full responsibility for past
abuses and demonstrate a com-
mitment to change, Misol said.
Otherwise the US will reward
bad actors and victims will be
denied redress.
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REGIONAL BIZ
13
Myanmar Summary
Won Ior The Money: North Koreu Ixperiments With Ixchunge Rutes
James Pearson
I
n a dimly-lit Pyongyang
toyshop packed with Mickey
Mouse picture frames and
plastic handguns, a basketball
sells for 46,000 Korean Peo-
ples Won close to $500 at
North Koreas centrally planned
exchange rate.
Luckily, for young North
Koreans looking to shoot hoops
with Dennis Rodman, the new
friend of leader Kim Jong Un,
the Chinese-made ball actually
costs a little less than $6 based
on black market rates.
Once reserved Ior omcIuI
exchange only in zones aimed at
attracting foreign investment,
and in illegal underground
market deals elsewhere, black
market rates are being used
more frequently and openly in
North Korean cities.
Publicly advertised prices
at rates close to the market
rate around 8,000 won to the
doIIur versus LIe omcIuI ruLe oI
96 could signal Pyongyang is
trying to marketise its centrally
planned economy and allow a
burgeoning grey market to
thrive. This could boost growth
and capture more of the dollars
and Chinese yuan circulating
widely so that North Korea can
pay for imports of oil and food.
UnomcIuI murkeL ruLes couId
become more widespread
following an announcement
last month of 14 new special
economic zones (SEZs) aimed
at kickstarting a moribund
economy where output is just
one fortieth of wealthier South
Koreas. A spokesperson for the
Korea Economic Development
Association, a local organisa-
tion tasked with communicat-
ing policy in the new SEZs, told
Reuters that exchange rates in
LIe new zones ure Lo be hxed
according to (local) market
rates.
TIe omcIuI ruLe Ior LIe won
is like a placeholder, said Mat-
thew Reichel, director of the
Pyongyang Project, a Canadian
NGO that organises academic
exchanges with North Korea.
We all know that the value of
the won is not this.
An estimated 90 percent of
economic transactions along
North Koreas border with
China are in yuan, an embar-
rassment for a country whose
policy stresses economic inde-
pendence, and something that
reduces the grip that authorities
attempt to exercise over its peo-
ple and economy.
Pyongyang does not publish
economic data, but is believed
to have run a sizeable current
uccounL dehcIL Ior yeurs, sLruIn-
ing its ability to pay for imports
in hard currency.
An attempt in 2009 to revalue
LIe won und conhscuLe prIvuLe
foreign currency savings
prompted protests from market
traders and forced a rare policy
reversal and public apology
Irom sLuLe omcIuIs.
Due to its lack of foreign cur-
rency, the North Korean gov-
ernment will have to tolerate
black market rates, even if it has
dImcuILy In omcIuIIy recognIs-
ing them, said Cho Bong-hyun,
a North Korea economics expert
at the IBK Economic Research
Institute in Seoul.
Others have gone down this
route before.
This is comparable to Cuba,
which implements a dual cur-
rency system between convert-
ible pesos and national pesos,
and Myanmar, which for years
refused to recognise the black
market value of the kyat until
it became completely uncon-
trollable, said Reichel at the
Pyongyang Project.
Not only does North Korea
noL provIde omcIuI duLu on ILs
economy, but when things are
actually paid for using the of-
hcIuI ruLe, LIe muLIs don`L udd
up.
Pyongyangs two-line metro
system, which only accepts won,
is one of the worlds cheapest at
just 5 won a ticket. However, the
equivalent grey market value is
so small that no single coin in
any currency is small enough to
cover it.
State salaries are also paid ac-
cordIng Lo omcIuI ruLes, meun-
ing the 6,000 won a month paid
to a civil servant only just covers
the cost of a pack of cigarettes
and a lighter.
TIe dIerence In omcIuI
suIurIes und unomcIuI prIces Is
made up from an economy that,
despite government restric-
tions, has become increasingly
marketised.
Even workers with stable jobs
in Pyongyang are tasked with
extra money-making activi-
ties. Women in particular, less
bound by obligations to work
state-controlled jobs, dominate
North Koreas countless urban
and rural marketplaces.
While low-end goods and ser-
vices are increasingly expressed
according to grey market rates,
transactions at more expensive
shops are usually priced using
LIe omcIuI ruLe, buL conducLed
in dollars or yuan.
The Chongjon Sunrise Super-
market in central Pyongyang
sells Hersheys chocolate bars
at 150 won and, for the ambas-
sadors in town, boxes of Ferrero
Rocher at 1,850 won the low
prices indicate the vendor
expects to be paid in foreign
currency, not won.
Reichel said that when he once
teasingly tried to pay for his
midnight snacks with a couple
of crumpled North Korean won
banknotes, the shop assistant
smiled patiently, and politely
asked for dollars. At grey mar-
ket rates, the assistant would
have had to accept an armful
of 5,000 won notes, the largest
denomination, for the 160,000
won the chocolates cost.
Black market rates are set
by larger scale currency traders
working in major urban areas,
said Christopher Green of the
Daily NK, a website that tracks
black market rates in North
Korea.
Kim Jong Un, the third of his
line to rule impoverished North
Korea, has repeatedly pledged
that austerity is over.
The North experienced a
famine in the mid-1990s and its
economy was hurt by the col-
lapse of the Soviet Union that
propped it up in a Cold War
battle for supremacy in Asia.
Trading partners such as
China and Russia now insist
on being paid in hard currency,
draining reserves.
Stacked up against South Ko-
rea, whose economy it once out-
muscled, and China, which has
gone from failed collectivisation
to the worlds second-largest
economy, Pyongyang faces
some tough choices.
Economic reform and freer
markets could accelerate the
growth of a middle class that
is not beholden to Kim and the
dynastic rule of his father and
grandfather.
One step would be to broaden
out the number of institutions
like the Golden Triangle Bank
in the Rason Special Economic
Zone which regularly advertises
rates for the euro, dollar, yuan,
yen and rouble that no longer
reecL LIe omcIuI poIIcy ruLe.
There are people who are
trying to push for some sort of
policy implementation, said
Reichel. But we wont start to
see sustainable economic devel-
opment until the government
accepts their currency system
does not work in the long term,
and continuing with this idea
of a state-provided salary is
futile.
At this stage, its still like
cowboys and capitalism.
Reuters
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www.mmbiztoday.com
REGIONAL BIZ
14
Bungludesh Wuge Bourd Proposes
,,pc Gurment Wuge Rise
B
ungIudesI`s omcIuI wuge bourd proposed u ;; percenL rIse
in the minimum wage for garment workers last week after a
string of fatal factory accidents this year thrust poor pay and
conditions into the international spotlight.
GurmenL IucLory sLu wenL on sLrIke over wuges Ior sIx duys In
September, hitting production at almost 20 percent of the countrys
3,200 factories.
The strikes followed similar protests over the summer.
The worlds second largest clothing exporter hopes to announce
a new minimum wage this month. The wage board proposed a rise
in monthly pay to 5,300 taka ($68) after factory bosses formally
oered ,6oo Luku und LIen, uILer severuI meeLIngs, ruIsed LIuL Lo
4,200 taka.
The board proposed this amount considering the present reality
both from the point of owners and workers, board chairman AK
Roy told reporters.
The proposal will go to the Ministry of Labour and Employment
for review.
The wage negotiations must somehow strike a balance between
Western fashion giants, politically connected factory owners and
proLesLIng sLu, wILI LIe governmenL`s eye on eIecLIons due Lo be
held by January.
The government did not respond to strikes over wages last year,
but since then accidents including the collapse of the Rana Plaza
factory complex near Dhaka, which killed more than 1,100 garment
workers, have put the authorities on the back foot.
Bangladesh appointed the board in May after the Rana Plaza
disaster.
We will urge the owners to implement it without any opposition,
otherwise there will be a deadlock in the sector, said Sirajul Islam
Rony, a workers representative on the board.
But Arshad Jamal Dipu, a representative of the Bangladesh Gar-
ment Manufacturers and Exporters Association (BGMEA), said 77
percent rise was high.
We will appeal to the government to consider our ability, and it
sIouId noL Luke uny decIsIon ouL oI emoLIon or poIILIcuI benehL, Ie
told Reuters.
The present minimum monthly wage for garment workers is
around half those in rival Asian exporters Vietnam and Cambodia
and just over a quarter of the rate in top exporter China, according
to International Labour Organisation data from August. Reuters
Myanmar Summary
Singapore on Alert For Cyber
Attucks AIter Websites Hucked
Kevin Lim
S
ingapores government
has been put on height-
ened alert for cyber attacks
after people claiming to be from
international hacking collective
Anonymous defaced several
web sites in the city-state and
threatened further action.
Government agencies have
been on heightened vigilance
and have enhanced the security
of their IT systems in response
to the declared threats against
the governments ICT infra-
structure, the Infocommuni-
cations Development Author-
ity of Singapore (IDA) said in a
statement.
ICT stands for information
and communication technology.
The comments came a day
after hackers claiming links to
Anonymous defaced dozens of
websites belonging to Austral-
ian businesses and Philippine
government agencies.
Several websites in the city-
state have also been hacked
over the past week, including
one belonging to the town
council of Prime Minister Lee
Hsien Loongs constituency and
another belonging to a second-
ary airport.
IDA said the problems in
accessing several Singapore
government websites over the
weekend were due to technical
problems that arose during
maintenance on Saturday after-
noon. While the glitches have
been recLIhed, peopIe uccessIng
these websites may continue
to face intermittent access as
maintenance was still ongoing.
On Monday last week,
the website of Singapores
largest newspaper, the pro-
government Straits Times, was
inaccessible for several hours,
three days after a section of its
site was successfully attacked
by someone claiming to be from
Anonymous.
The website of the National
Trades Union Congress, closely
associated with Singapores
ruling Peoples Action Party,
also appeared to have technical
problems, with its eServices
down.
Some users might have had
dImcuILy uccessIng LIe sLruIL-
stimes.com website late last
night and some SPH websites
today ... The SPH Informa-
tion Technology Division is
investigating the matter, pub-
lisher Singapore Press Hold-
ings (SPH) said in response to
media queries.
The disruption comes three
days after a hacker, who called
himself The Messiah, posted a
lengthy message on the papers
online blog page to criticise its
report about an internet video
by another person claiming to
be part of Anonymous.
That person, who wore one
of the Guy Fawkes masks that
have come to symbolise the
group, had threatened to attack
Singapore government websites
to protest against new licensing
rules on news websites.
English Catholic traitor Guy
Fawkes was the best-known
conspirator in a 17th-century
plot to blow up the countrys
parliament. Reuters
Myanmar Summary
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REGIONAL BIZ
15
Contd. P 16...(China)
www.mmbiztoday.com
Japanese Cabinet
Approves Bill to Set Lp
Strategic Special Zones
T
he Japanese Cabinet approved a bill to set up strategic
special zones last week as a centrepiece of economic
growth strategy to promote deregulation exclusively,
Japanese media reported.
Prime Minister Shinzo Abes government is seeking the pas-
sage of the bill during the ongoing extraordinary Diet session
through December 6, according to Kyodo News.
TIe governmenL Is expecLed Lo desIgnuLe LIree Lo hve specIuI
zones early next year, which would be aimed at attracting peo-
ple and investment from both domestic and abroad through
deregulation and tax incentives.
It also seeks regulations which would be relaxed in the zone
to promote urban redevelopment, as well as those for launch-
ing an agricultural production corporation.
Other deregulation steps to be implemented are allowing
prIvuLe secLor hrms Lo operuLe pubIIc scIooIs, enubIIng IospI-
tals to increase beds more easily, and expanding the scope of
treatment by non-Japanese doctors and nurses.
Details of tax breaks in the special zones will be decided at
the end of the year in discussions about tax reforms for the
nexL hscuI yeur sLurLIng AprII zo1q, omcIuIs cIose Lo Abe suId.
Xinhua
Myanmar Summary
Chinu Premier Wurns Aguinst
Loose Money Policies
Li says China needs 7.2 percent GDP growth to support employment
C
hina needs to sustain
economic growth of 7.2
percent to ensure a stable
job market, Premier Li Keqiang
said as he warned the govern-
ment against further expanding
already loose money policies.
In one of the few occasions
wIen u Lop omcIuI Ius specIhed
the minimum level of growth
needed for employment, Li
said calculations show Chinas
economy must grow 7.2 percent
annually to create 10 million
jobs a year.
That would cap the urban
unemployment rate at around 4
percent, he said.
We want to stabilise eco-
nomic growth because we need
to guarantee employment es-
sentially, Li was quoted by the
Workers Daily as saying last
week. His remarks were made
at a union meeting three weeks
ago but were only published in
full last week, just days before
a pivotal Communist Party
plenum to set policy opens.
Yet even as authorities keep
an eye on growth, Li sounded a
warning on easy credit supply,
which he said had topped 100
trillion yuan ($16.4 trillion)
in the worlds second-biggest
economy.
Our outstanding M2 money
supply has at the end of March
exceeded 100 trillion yuan, and
that is already twice the size
of our gross domestic product
(GDP), Li was quoted as
saying.
In other words, there is
already a lot of money in the
pool; to print more money may
Ieud Lo InuLIon.
His comments echoed the
governments hawkish stance
on InuLIon, unuIysLs suId,
und were sepuruLeIy umrmed
last week by the central bank,
which promised to keep policy
prudenL wILI upproprIuLe hne-
tuning as well as to resolutely
repress property speculation.
Still, Lis remarks underscore
LIe hne IIne CIInu musL wuIk
to create economic growth and
jobs for social stability, while
guarding against excesses that
may hurt itself in the long run.
Chinas authorities have criti-
cised the countrys $8.5-trillion
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Chinese Premier Ii Keqiang warned the government against further expanding its aIready Ioose money poIicies.
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REGIONAL BIZ
16
From page 15...(China)
Philippines Hus Second Biggest II Increuse in ASIAN in H1
Alito L Malinao
T
he Philippines recorded
the second biggest foreign
direct investment (FDI)
Inow Ior LIe hrsL IuII oI LIIs
year, according to the United
Nations Conference on Trade
and Development (UNCTAD).
In its latest report on Global
Investment Trends Monitor,
UNCTAD said that the Phil-
ippines had a 10.9 percent
Increuse In D Inows Lo $z.z
bIIIIon In LIe hrsL IuII oI LIe
year.
This was the second biggest
increase among the member-
countries of the Association of
Southeast Asian Nations (ASE-
AN), topped only by Malaysia,
which recorded a 14.4 percent
increase in investments to $5.9
billion.
Next to the Philippines are
Indonesia with FDI increase of
6.8 percent to $8.3 billion, and
Vietnam, up 3 percent to $3.9
billion.
According to the UNCTAD
report, the two other founding
members oI ASEAN suered un
FDI contraction, with Thailand
recording a 54 percent decline
In D Inows Lo $1.q bIIIIon In
LIe hrsL semesLer oI zo1 wIIIe
SIngupore suered u ;.q percenL
drop to $25.9 billion.
UNCTAD said that in de-
veloping Asia, the recovery of
D Inows wus weuk, wIIcI IL
attributed partly to a slowdown
in economic growth and mac-
roeconomic uncertainty as well
as a slow demand in consumer
markets in many investor
countries.
The report said that globally,
FDI reached an estimated $745
bIIIIon In LIe hrsL sIx monLIs oI
the year, up from $718 billion a
yeur ugo buL LIe Inow Lo deveI-
oped economies declined.
L suId LIe ows oI D Lo
developing and transition
economies accounted for more
than 60 percent of the global
FDI, which it called a record
share.
The release of the UNCTAD
report came on the heels of
a statement by the Bangko
Sentral ng Pilipinas (BSP), the
countrys central bank, that the
neL D Inow In LIe PIIIIp-
pines in July surged to $533
million, a sharp 227 percent
increase from the $163 million
recorded in the same period last
year.
TIIs reecLed LIe conLInued
conhdence oI InvesLors In LIe
Philippine economy on the
back of strong macroeconomic
fundamentals, the BSP said in
a statement.
n LIe hrsL seven monLIs up
Lo JuIy zo1, LIe neL D Inow
in the Philippines climbed 22
percent to $2.62 billion from
$2.14 billion in the same period
last year.
The BSP expects net FDI
Inow Lo reucI $z.z bIIIIon LIIs
year, slightly above the $2 bil-
lion in 2012.
MeunwIIIe u Lop omcIuI
of the Department of Trade
and Industry has said that by
pussIng up LIe Truns-PucIhc
Partnership (TPP), Philippine
IndusLrIes muy Iose u sIgnIhcunL
share of the US market.
We cunnoL uord noL Lo be
part of the TPP because the
United States is one of our larg-
est markets. Our neighbours,
Brunei Darussalam, Malaysia,
Singapore, and Vietnam, are
part of that agreement. If we are
not part of this agreement, our
neighbours will get preferential
LurIs und Iurger murkeL uccess.
n eecL, LIIs muy dImInIsI our
market access, Trade Under-
secretary Adrian S Cristobal Jr
was quoted as saying in a report.
According to Cristobal,
among the sectors that may be
sIgnIhcunLIy uecLed ure LIe
electronics and agriculture
industries. The Philippines top
hve exporLs Lo LIe UnILed SLuLes
are static converters, ignition
wiring sets, electrical machin-
ery, other digital monolithic
integrated circuits and coconut
(copra) oil.
Reuters
Myanmar Summary
economy powered by heavy
reliance on exports and invest-
ment as unstable and on an
unsustainable growth path.
To retool the economy, its new
leaders have signalled they are
willing to tolerate slower expan-
sion in exchange for cleaner
growth led by consumption.
BueLed by sIuggIsI exporL
sales and in part on the govern-
ments deliberate attempt to
slow activity, Chinas economy
is sagging towards its slackest
pace of expansion in 23 years
this year, at 7.5 percent.
In its third-quarter monetary
policy report, the Peoples Bank
of China (PBOC) said Chinas
economy faces a challenging fu-
Lure und LIuL InuLIon, uILIougI
stable right now, may rise in the
fourth quarter.
The foundation for stable
consumer prices is not solid,
the central bank said. Annual
consumer InuLIon muy rIse In
the fourth quarter.
It said a marked rise in house
prices, especially in Chinas big-
gest cities, may have also lifted
rents, other related costs, and
ultimately overall price levels.
Li reiterated that a 7.5 percent
growth target for 2013 remains
intact, but noted that weak
exports were a risk.
Exports can directly create
about 30 million jobs and add
another 70 million jobs in other
related industries, Li said.
For every percentage point
that China generates in eco-
nomic growth, it creates 1.3 mil-
lion to 1.5 million jobs, Li said.
We are not seeking high-
speed growLI, und dehnILeIy noL
seeking only GDP growth. But a
reasonable speed in growth is
needed, and so we have ensured
a reasonable range in economic
expansion, he said.
Chinas urban jobless rate
eased to 4 percent at the end
of September from 4.1 percent
three months earlier. It is the
counLry`s onIy omcIuI unem-
ployment indicator, but analysts
say it grossly underestimates
the true level of unemployment
as it excludes about 260 mil-
lion migrant workers from its
surveys.
Li did not say that 7.2 percent
in annual economic growth was
the minimum the government
would tolerate, but analysts
have always believed that
Chinas leaders considered
growth between 7 percent and
7.5 percent to be reasonable.
On InuLIon rIsks, Iowever, I
was clear.
If we loosen credit, if we
expund LIe hscuI dehcIL, LIuL
would be like an old saying
wIere one currIes hrewood Lo
exLInguIsI u hre, I wus quoLed
as saying.
And this is why we choose to
persevere wILI sLubIe hscuI und
monetary policies. Reuters
Myanmar Summary
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A general view of high-rise residential and commercial buildings is seen in Manila. The Philippines recorded the second biggest foreign direct
investment inHow for the rst haIf of this year.
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REGIONAL BIZ
17
www.mmbiztoday.com
Taiwan Branding Stymied By Its Success
At Muking Others' Gudgets
Michael Gold
T
aiwans success at design-
ing and mass producing
must-have gadgets for
branded rivals such as Apple
I nc makes it tougher for its
companies trying to launch
aspirational consumer brands
of their own.
Ben Ho, marketing chief at
smartphone maker HTC Corp,
suys IIs hrm`s sIIIL Irom orIgI-
nal design manufacturer (ODM)
to branded company has been
a challenge for marketing and
messaging.
For an ODM player, things
are much simpler you ship
to the operators and your jobs
done, he said in an interview.
As a company, we decided to
become a brand ... it opened up a
whole new area of engagement.
WILI ruLIIess emcIency und
technical prowess, most large
Taiwanese manufacturers were
founded a generation ago by
engineers or business people
for whom cost control was
king. Products were faster,
lighter, more compact and
feature-packed, but lacked a
coherent brand image to attract
consumer loyalty even after
these ODMs decided to become
brands.
Now that the electronics and
technology goods that Taiwan
manufactures have become
increasingly commoditised, the
countrys lack of an innovative
breakthrough is more apparent.
Not so long ago, the likes of
Acer I nc and Asustek Computer
I nc (Asus) looked set to lead
Taiwans economy down a path
similar to J apan and South
Korea, moving from assemblers
of gear exported westwards
to globally admired brand
champions.
I n 2010, Acer was the worlds
second-largest notebook
manufacturer. I n 2011, HTC
conLroIIed u hILI oI LIe UnILed
States market for smartphones
second only to Apple. Today,
boLI ure IendIng o LuIk oI buy-
outs as sales have slumped and
their stock prices have followed.
Last month, HTC posted its
hrsL ever quurLerIy neL Ioss und
could lose more than T$1.62
billion this year, according to
SmartEstimates.
Many view these companies
past triumphs as incremental at
best, and coincidental at worst.
The popularity of smaller,
web-friendly notebooks in the
late-2000s, pioneered by Asus,
was a stepping stone to the
tablet wave later unleashed by
Apple. Similarly, HTCs early
dominance in the market for
Android, Googles mobile oper-
ating system, is viewed as mere
good LImIng: IL wus hrsL Lo oer
a genuine iPhone alternative.
Now, Taiwans progression
up the innovation ladder has
stalled, with potential economic
fallout as contract design and
manufacturing shifts to main-
land China and elsewhere,
where costs are lower and talent
plentiful.
The irony is that Taiwan has
played its back-end role to great
success for decades.
According to Mark Stocker, a
Taipei-based branding consult-
ant who has worked alongside
IocuI hrms Ior Lwo decudes,
Taiwans economic miracle
was built on a simple formula
oI hndIng u producL, mukIng
it cheaper, getting those orders
- LIen hndIng LIe nexL producL
and doing it all over again.
Stocker and others believe
this process has become dogma
Lo TuIwunese LecInoIogy hrms
so much so that they fail to
understand that customers now
want more than just low prices
and a long list of features.
Taiwanese bosses dont re-
ally have an idea how to make
a more appealing product
based on emotional value,
said Albert Chen, a former
industrial designer for Acer and
a design consultant for HTC.
He compared Taiwans product
creation process to Samsungs,
where consumer lifestyle is a
key consideration.
WIen go Lo dIerenL exII-
bitions, whether its electronics
or design shows or consumer
shows, I rarely see Taiwanese
designers or developers or
product planners. I just see
people in execution level, top
management, Chen said.
Theyre good at business
strategy, but this is not the way
to create a good product.
I n putting technological
muscle ahead of consumer
taste, Taiwanese designers are
forced to work around what
engineers want the opposite
oI Iow AppIe operuLes. ConIcL
is common in an environment
where designers strive to think
outside the box and managers
ure sLIII hxuLed on cosL-perIor-
mance ratios.
Whats odd is that when we
have discussions with project
managers at Asus or Acer, they
say dont worry about our
product image, said a senior
designer at a large ODM, who
didnt want to be named.
The project managers, most
of whom have engineering or
R&D backgrounds, dont trust
their own in-house designers.
Benjamin Chia, Taiwan-born
cIIeI creuLIve omcer uL eIemen-
tal8, a Silicon Valley-based
design consultancy whose client
list includes Samsung Electron-
ics, Microsoft and Motorola,
says Taiwanese designers
struggle to gain respect in the
corporate hierarchy.
Upper management knows
nothing about design, so they
have designers over-explain
and over-simplify, he said.
The product loses its design
purity.
A manager at Asus said the
company invests little in prod-
uct design or consumer interac-
tion, placing most emphasis
on price and gadget spec. Our
strategy basically boils down
to copying our competitors
products and adding one more
feature or making it cheaper,
said the manager, who was
not authorised to speak for the
company, so didnt want to be
named.
For many, the only way for
Taiwan to break from being a
brand-free zone is to make the
sort of deep, years-long invest-
ment in product innovation
that Apple, under its design-
obsessed founder Steve J obs,
did for decades.
Especially crucial, say indus-
try experts, is gaining control
over the entire user experience
of a product, from hardware to
software to advertising to sales
outlets.
Apple, for example, designs
its own chips and operating
system, and has a commanding
retail presence. And Samsung
boasts a strong grip over its sup-
ply chain, and has a tradition of
end-user products that has built
a reputation among consumers.
For Taiwanese companies to
succeed at talking to the aver-
age customer, price, spec and
tech need to take a backseat to
image, design and message, the
experts say.
What they havent realised
is that theyre still using a cost-
performance mentality to build
brand, Stocker said. Thats
just not working anymore.
Reuters
Myanmar Summary
A modeI dispIays a ASUS's Eee PC 1U15PW Sirocco netbook during a media Iaunch in Taipei.
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www.mmbiztoday.com
INTERNATIONAL BIZ
18
LS MunoIuctorers ReIushion
Themselves As 'LiIestyle Brunds'
James B Kelleher
C
all it concealed-carry chic:
With all 50 US states now
permitting people to pack
pistols in public, it was only
a matter of time before some
company came to market with
an apparel line targeting the
gun-toting crowd.
Remington Arms Co, which
Ius been mukIng hreurms
for nearly 200 years, has just
unveiled a collection of cloth-
ing and accessories, including
the Smoothbore Field Coat
($1,295) and the Double Der-
ringer Leather Vest ($300).
I n drawing a bead on the
apparel market, Remington
becomes the latest US manu-
facturer to try reinventing itself
as a lifestyle brand as a way to
bolster its bottom line.
Next up is Winnebago I ndus-
tries I nc, the US maker of mo-
torhomes and trailers. I n Octo-
ber, the Forest City, I owa-based
motorhome maker announced
an agreement with Brandgenu-
ity, a New York-based licensing
agency, to put the Winnebago
name on a range of outdoor
fashions and camping gear.
We stand for quality prod-
ucts and a fun lifestyle, Randy
Potts, the companys chairman,
chief executive and president,
told Reuters. We think theres
an opportunity to leverage that
beyond RVs.
As Remington and Winne-
bago step into the market for
soft-good extensions of their
hard-metal brands, they may
have learned from the successes
- und LIe mIshres - oI oLIers
that have gone before them,
including Caterpillar I nc, Deere
& Co and Harley-Davidson I nc.
History suggests success can
be elusive for such brands, which
do not always transfer well onto
products cut from cloth.
Remingtons line of clothes
und uccessorIes - oered by
catalogue but also available on-
line includes everything from
u hve-pIece IeuLIer Iugguge seL
complete with gun sleeve and
pistol case ($1,675) to a cotton-
twill shooting shirt ($150).
Perhaps the most eye-
catching part of the collection is
the Double Derringer Leather
Vest with two zippered am-
bidextrous concealed weapons
pockets.
Not sure how that works? No
problem. The catalogue features
a picture of a grim-looking male
model, eyes cast to the ground,
drawing a blued-steel semiau-
tomatic pistol from one of the
secret pockets.
Remington, which can claim
to be one of the oldest US man-
ufacturers and still operates a
plant in I lion, New York, where
the company was founded, says
it took the plunge in response to
customer requests.
Our history is one of building
hand-forged, craftsman-like
quality products, said Ross Sal-
darini, the companys general
manager for lifestyle products.
So when our customers
asked us to build them some
additional products, some ap-
parel products, we decided to
create a brand for Remington
that would try to capture some
of that heritage and history.
TIe benehLs oI bruncIIng ouL
range from simply building
brand awareness to increasing
sales of core products, said
Adina Avery-Grossman, a part-
ner at Brandgenuity.
I t can also create a healthy
revenue stream an attractive
proposition for companies like
Caterpillar, Winnebago and
others that are struggling for
growth in their core businesses.
Deere, Caterpillar and other
companies do not disclose roy-
alty receipts. Thats a highly
conhdenLIuI number, suId
Mark J ostes, the head of Cater-
pillars retail business develop-
ment group. But the revenue
can be substantial.
J ostes estimates Caterpillars
authorized licensees includ-
Myanmar Summary
A modeI presents ofciaI CaterpiIIar Iicensed appareI and footwear. CaterpiIIar is drawing
a bead on the appareI business, becoming the Iatest US manufacturer to boIster its bottom
line - and leverage the passion some customers have for its products - by reinventing itself as
a 'lifestyle brand'.
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ing Wolverine World Wide,
Summit Resource I mports and
Toy State sold $1.1billion in
Cat-branded merchandise last
year.
Cat has moved from simply
licensing merchandise to ap-
proving nearly 75 retail stores
around the world most in
Central and South America and
the Caribbean.
I f you go to England, Chile,
China or the Middle East, if you
say you work for Caterpillar,
theyre likely to say, Oh, the
footwear and apparel com-
pany? J ostes said.
I ts not just hats, T-shirts and
boots. Although Deere shies
away from most food products
I t spoils ... and our leadership
has come to the conclusion that
the results of those sales are not
worth the challenges, said Dale
Paschke, Deeres manager of
brand licensing the Moline,
I llinois-based farm equipment
maker has allowed a company
to sell J ohnny Pop popcorn,
featuring a picture of one of the
companys green and yellow
harvesters on the package.
Fans of Caterpillar, mean-
while, can now buy the Cat B15,
a rugged Android 4.1 phone
designed and built by Bullitt
Mobile. And J ostes hints a Cat-
branded laptop may be next.
There are some risks. I nci-
dents like the collapse in April
of a Bangladesh clothing fac-
tory that killed more than 1,000
workers created a reputational
backlash for the retailers and
apparel brands connected with
the plant though none of the
manufacturers that have moved
into apparel saw their brands
connected to that disaster.
Another potential pitfall:
Companies must ensure prod-
ucts carrying their names are
consistent with the core brands
values. Caterpillar, for instance,
is about empowerment and au-
thenticity, according to J ostes,
while Winnebago is about
elegant design, according to
Avery-Grossman.
To date, the downside risks
have proved manageable.
Weve never seen a licensing
program undo or kill a brand,
Avery-Grossman said.
Deere has balked at pitches
to market J ohn Deere-branded
duct tape and lighters. Another
no-no: booze, even though
much of it is distilled from corn
harvested by Deere combines.
We turn down many op-
portunities that could be much
more prohLubIe Lo LIe busIness
because we dont think its
appropriate for our brand,
Paschke said. Reuters
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INTERNATIONAL BIZ
19
www.mmbiztoday.com
Google LiIts Post-Nokiu Hopes With
$6oom Iinnish Investment
G
oogle will invest another
450 million ($607
million) over the next
few years in a data centre in
Finland, boosting a country
struggling with Nokias decline
and weakness in its paper and
steel industries.
The investment is in addition
to 350 million the worlds
No.1 I nternet search company
has already spent on the data
centre, built on the site of paper
company Stora Ensos former
mill in Hamina, southeastern
Finland.
Google bought the mill in
2009, turning it into one of its
mosL emcIenL duLu cenLres by
taking advantage of the Bay of
Finlands chilly seawater to cool
its servers.
Prime Minister J yrki Katainen
said the move showed the coun-
try, with its highly skilled work
force, remained competitive.
We have an excellent educa-
tion system. Finlands strength
Is In hndIng creuLIve soIuLIons
to global challenges, he said
last week during a visit to the
site.
Finland has one of the few
remaining triple-A rated econo-
mies in the eurozone and was
initially seen as being sheltered
Irom Europe`s hnuncIuI crIsIs.
But Europes prolonged
downturn has hit exports and
accelerated a decline in indus-
tries such as forestry, tipping
LIe currenL uccounL InLo dehcIL.
The government has forecast
GDP to contract 0.5 percent
this year.
InIund`s conhdence wus
dealt a blow in September
when Nokia struggling for
years to catch up with Apple
and Samsung in smartphones
announced it was selling the
handset business to Microsoft.
With the exception of some
gaming companies such as
Rovio of Angry Birds fame
and Clash of Clans developer
Supercell there have been few
growth companies to replace
the declining fortunes of Nokia.
The Hamina facility employs
about 125 people, and Google
said it was looking to increase
sLu over LIe comIng yeurs.
Companies such as Facebook
and Google have been expand-
ing their data centres and
looking for cheaper ways to
run them. Finland and other
northern European countries
have been popular sites for data
centres due to cooler climates
that help to reduce cooling
costs.
At the Hamina facility, one
of around 13 Google data
centres in the world, seawater
is pumped through the facility
to dissipate heat from the data
centres servers. The water is
then cooled down before being
returned to the sea.
There are also environmental
considerations. Around 2
percent of global greenhouse
gas emissions come from the
technology sector. Of that, data
centres account for around 17
percent, according to the Global
e-Sustainability I nitiative, an
industry-sponsored research
group specialising in topics
such as climate change.
The increasing use of cloud
computing, which allows
software and services includ-
ing email and online music
IIbrurIes Lo be oered over LIe
I nternet, is seen driving up the
use of data centre usage in the
coming years.
Microsoft has said it will
invest more than $250 million
in a new data centre in Finland.
Yandex, Russias biggest
search engine, started build-
ing a data centre in Mantsala,
southern Finland, in J uly.
Reuters
Myanmar Summary
Aodi Sticks to Prot Murgin
Goul espite Costs oI Growth
Aims to hit 1.5m sales target in 2013, two years early
G
ermun Iuxury-cur muker AudI sLuck Lo ILs IuII-yeur prohL
LurgeL even us IIgIer cosLs oI pIunLs und LecInoIogy InIcLed
a double-digit drop in third-quarter earnings.
The Volkswagen-owned division is pushing costly overseas expan-
sion, adding capacity in China, Mexico and Brazil as the brand aims
to topple luxury-sales champion BMW by the end of the decade.
Audis second Chinese factory will start production at the end of
the year while the carmaker is spending almost 1billion ($1.35
billion) on a new site in Mexico to build the next generation of the
Q5 compact SUV from 2016.
Were making high upfront expenditures and investments now
and in upcoming years in order to create an even stronger global
posILIon Ior AudI, hnunce cIIeI AxeI SLroLbek suId In LIe quurLerIy
earnings statement last week.
AudI reumrmed ILs gouI Lo ucIIeve un operuLIng prohL murgIn uL
the upper end of a target range between 8 percent and 10 percent
LIIs yeur, even us LIIrd-quurLer operuLIng prohL pIunged 1; percenL
to 1.10 billion, missing the lowest estimate of 1.13 billion in a
Reuters poll.
ProhL Irom AudI, wIIcI uccounLs Ior ubouL qo percenL oI VW
group operating earnings, funds the parents drive to surpass Gen-
eral Motors and Toyota as the worlds biggest carmaker by 2018.
Daimlers Mercedes-Benz, which also includes the Smart city-car
brand, posted a 23 percent jump in third-quarter earnings before
interest and tax (EBI T) to 1.2 billion.
However Audis third-quarter operating margin of 9.4 percent
beat the 7.3 percent return on sales at Mercedes.
Audi, based in I ngolstadt, Germany, also stood by a goal to hit its
sales target of 1.5 million cars and SUVs in 2013, two years early.
Reuters
Myanmar Summary
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A CoogIe data centre.
F
ile
s
A modeI poses in an Audi Nanuk Quattro concept car during a media preview day at the Frank-
furt Motor Show.
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www.mmbiztoday.com
INVESTMENT & FINANCE
20
Who Will Leud the Next Boll Murket?
David Mayes
T
his is a very interesting
question which will inevi-
tably make those who an-
swer it correctly have the gump-
tion to put their money where
their mouths are very rich. I
dont have the answer unfor-
tunately. My two boys are very
rambunctious and smashed my
crystal ball over the weekend,
so unfortunately we will need to
try and explore this issue with a
little commonsense and a look
back at the history of the last
few bull markets.
IrsL o, wIuL reuIIy cuuses u
bull market? Some would say
clever and collective marketing
by Wall Street, combined with
mass stupidity on the part of
the masses. I myself have been
the victim of a good story
underlining the case for an
investment which in the end
turns out to be nothing more
than a very good story. The dot
com companies were probably
the best story in recent times.
There was in fact some truth
behind the story, as the internet
really has changed things and
LIe worId reuIIy Is u dIerenL
place because of it. Unfortu-
nately that is not akin to www.
watchmygrassgrow.com being
a good investment when it has
never booked any revenues, let
uIone prohL.
The next big bull market that
came crashing down in 2008,
in my opinion, really was sold
to the public with the under-
pinning of another great story.
The US real estate market has
collectively never had a down
year was a phrase I remember
being repeated again and again
by various talking heads on
CNBC over the years I sat glued
to my trading desk back in the
real world. They really made a
compelling case for mortgage
backed securities and boy were
those homebuilders on a tear
back then. I nvestment banks
were also making coin like
never before, but unfortunately
even the greatest of parties
must eventually come to an end.
They say the most dangerous
words in investing are this
LIme Is dIerenL, und wIIIe IIs-
tory doesnt always repeat itself
exactly it sure does rhyme very
weII In LIe hnuncIuI murkeLs.
While the story told to fuel these
past two bull markets were very
dIerenL, LIey boLI Iud one
thing in common. There was
some form of a real change
that allowed the public to not
only get excited, but to believe.
n LIe hrsL cuse IL wus LIe rIse
of the internet and all of the
very real business opportunities
that have in fact come about
because of it. Unfortunately
people collectively departed
from all traditional sense with
regards to investing in publicly
traded companies. I n the sec-
ond instance it was new and
esoteric investment vehicles
that the public had not been
either aware of or able to invest
in, and it was sold to them as
a sure thing. One lesson to
come away from that episode
is that when Wall Street starts
to market something as a sure
LIIng, Lry Lo hnd u wuy Lo prohL
when it eventually goes horribly
wrong.
There are some very excit-
ing changes happening in the
world today, the most exciting
one in my opinion is 3D print-
ing. The leading companies in
LIIs heId ure uIreudy LrudIng
at unbelievable multiples, but
while I would personally avoid
them it may give a clue as to
where the next bull market
will come from. Plain vanilla
manufacturing companies have
taken second seat to technology
hrms Ior quILe some LIme now,
but where we may see the great-
esL benehLs In LIe IuLure couId
very well come from this sector.
After all, they will be the ones
wIo benehL hnuncIuIIy Irom
what all this new technology
can do, assuming they keep up
to speed. I f the well-established
munuIucLurIng hrms cun In
fact realise huge cost savings
over the coming decades, there
is an argument to make that
they are currently mispriced in
the markets. Could the boring
companies that manufacture
uII LIe sLu we uIreudy enjoy
really become a compelling
enough story to fuel the next
bull market? I am not so sure,
but I am sure that keeping an
eye on the changing business
Iundscupe und LIe SEC hIIngs
of what the investments banks
are actually buying themselves
(more on this to come) is prob-
ably a good way to increase your
odds of getting in early on the
next darlings of Wall Street.
David Mayes MBA provides
wealth management ser-
vices to expatriates throughout
Southeast Asia, focussing on
UK Pension Transfers. He
can be reached at david.m@
faramond.com. Faramond UK
is regulated by the FCA and
provides advice on pensions
and taxation. Views expressed
here are his own.
Myanmar Summary
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Myanmar Company To Sell
Shures To Poblic Soon
O
ne of the two Myan-
mar companies which
formed a joint venture
with two J apanese conglomer-
ates to develop the Thilawa
special economic zone (SEZ)
will start selling its shares to
the public soon, according to an
omcIuI medIu reporL.
No duLes were specIhed Ior
the move in the report.
Two Myanmar companies
and two J apanese companies
established a joint venture en-
tity, Myanmar-J apan Thilawa
Development Co Ltd, in Tokyo
on October 29 to carry out the
SEZ project.
The two Myanmar companies
are the governments Thilawa
SEZ Management Committee
and the Myanmar Thilawa SEZ
Holdings Public Co Ltd, while
Kyaw Min LIe Lwo Jupunese hrms ure
MMS Thilawa Development Co
Ltd and J apan I nternational
Cooperation Agency (J I CA).
Myanmar and J apan will hold
51and 49 percent of the shares
of the project respectively.
The J V company will start
ImpIemenLIng LIe hrsL pIuse
of Thilawa SEZ in mid-2015.
The project includes factories,
IIgI-LecI hrms, LexLIIe, Iubour
intensive and manufacturing
industry. The 2,000-hectare
project lies between Thanlyin
and Kyauktan townships in
Yangon region.
The J apan I nternational
Cooperation Agency (J I CA)
agreed to provide a loan of 51
billion yens under the J apanese
governmenL`s OmcIuI DeveIop-
ment Assistance (ODA) to My-
anmar in J une 20 billion yen
of which is for developing the
infrastructure in Thilawa SEZ
and the rest is for upgrading
power grids and power stations
in Yangon.
Myanmar Summary
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21
Myanmar Summary
Contd. P 23...(Parliament)
www.mmbiztoday.com
Visu Set to Luonch Molticorrency Truvel Prepuid Curd
Phyu Thit Lwin
A
merican payment
network giant Visa
said it is working
closely with Myanmar
bunks Lo IuuncI LIe hrsL
Visa Multicurrency Travel
Prepaid card for Myan-
mar cardholders to use
when travelling overseas.
Visa said the upcoming
launch will mark another
milestone in the countrys
hnuncIuI sysLem, openIng
the global marketplace to
the people of Myanmar
who are travelling inter-
nationally for business
and leisure.
The Visa Multicurrency
Travel Prepaid card will
allow cardholders to load
up to three currencies
(Euro, US dollar, SG dol-
lar) onto a single card.
The card can be used for
overseas transactions an-
ywhere Visa is accepted,
or to withdraw cash at
about two million ATMs
worldwide.
The card also allows
locking in exchange rates
before travel to avoid
currency ucLuuLIons.
Cardholders can load up
to $5,000, while the card
is reloadable with chip
and PIN protection.
Somboon Krob-
teeranon, Visa Country
Manager, Myanmar and
Thailand, said it is criti-
cal to provide payment
innovations for Myanmar
travellers to use abroad.
This progress is the
result of the vision and
partnership between My-
anmar banks and Visa to
modernise payments for
the people of Myanmar.
In the past year weve
seen tremendous growth
in the development of
the local banking sector
and we believe the po-
tential remains high for
Myanmar to leapfrog tra-
ditional payment systems
und deveIop u hnuncIuIIy
inclusive infrastructure
LIuL wIII benehL LIe wIoIe
country.
According to a Visa
survey, the majority of
business travellers prefer
paying with a card when
travelling because its saf-
er than carrying cash or
travellers cheques, while
leisure travellers like pre-
paid cards because they
can be used to withdraw
cash at ATMs, make pay-
ments in stores and make
payments online.
Visa is committed to
introducing the products
that are most relevant to
the people of Myanmar.
Visa will continue col-
laborating with Myanmar
banks to enable the
introduction of additional
payment products in the
future, Krobteeranon
said.
Since December 2012,
when Visas payment
system was introduced in
Myanmar, transactions
on Visa cards by tourists,
inclusive of ATM with-
drawals, have accounted
for $15 million, Visa said.
Visa cardholders can
withdraw cash from more
than 250 ATMs in Myan-
mar, and make payments
at about 600 retail points
across the country.
Purliument Lrges Plun to eul with
Ministeriul ebt
M
yanmars par-
liament has
called on the
government to come up
with a plan to deal with
an estimated $1.1 billion
in ministerial debts that
was collected during the
countrys many years
under military rule.
A report by the Union
AudILor GeneruI`s Omce,
which is examining ex-
penditures for the 2013-
1q hscuI yeur, Iound LIuL
15 ministries are yet to
repay outstanding loans
Su Su
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Mul ti currency Travel
Prepaid card .:.~:. .~
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._.:_~:..._.
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www.mmbiztoday.com
22
CB Bunk Luonches Truvel MusterCurd
C
ooperative Bank (CB)
last week launched EASi
Travel MasterCard, be-
comIng LIe hrsL bunk Lo Issue
such a travel card in Myanmar
for citizens travelling overseas.
An amount ranging from $50
to $5,000 can be preloaded in
the card and used outside My-
anmar, the bank said.
Kyaw Min The launch of electronic
payment systems for Myanmar
citizens in a short period of time
by CB Bank will be available
to travellers who visit foreign
countries, U Myint Swe, chief
minister for Yangon region,
said at the launching event.
He said the deal between
CB Bank and MasterCard will
sLrengLIen LIe hnunce und
banking industry of Myanmar.
Kyaw Lynn, executive vice
chairman and chief executive
of CB Bank, said, Just as our
country is opening up to the
world, at the same time, the
world is opening up to us and
were seeing more and more
locals travel abroad.
This will make their travels
safe and hassle-free without
the worries of carrying large
amounts of cash, he said.
According to the MasterCard
survey of Consumer Purchasing
Priorities, nearly two-thirds
of Myanmar people who have
travelled abroad intend to do
so again within the next 12
months, making the introduc-
tion of a prepaid travel card
timely for the market, it said in
a statement.
US payment network gi-
ant MasterCard launched
its services in Myanmar in
November last year, making it
LIe hrsL InLernuLIonuI eIecLronIc
payment card in the country.
Privately-held CB Bank was the
hrsL uuLIorIsed bunk Lo oer
services with the card.
Tourist and business travellers
with MasterCard, Maestro or
Cirrus cards can now withdraw
money in local currency, kyat,
at 36 CB Bank ATMs across the
country.
MasterCards American rival
Visa Inc followed suit in De-
cember last year, while Chinas
largest payment network China
Union Pay (CUP) and Japan
Credit Bureau (JCB) launched
their services in February and
September respectively.
The introduction of the four
international payment cards
followed the introduction of
Myanmar Payment Union
(MPU), a payment network
comprising 17 domestic banks,
in September 2011. MPU debit
card was introduced for services
domestically in September last
year.
Myanmar is also aiming to
introduce MPU card for use in
foreign countries in 2014 in a
bid to facilitate Myanmar citi-
zens travelling abroad.
Myanmar Summary
CB ~. EASi Travel Master
Card ~:. . , . ._ ~.~ ~ .~
~...._.. _.,.:.~ ._.:.
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card .:. ~ ..._. .~:._e .._~.
~.:.~_.:.~ .e..:.q:..
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._.
Toshibu Looks to Myunmur Growth us
Purt oI SI Asiu rive
J
apanese electronics
giant Toshiba is
making moves to
move into Myanmars
growing market, as
demand for its products
in the countrys growing
economy continues to
expand.
Hiroyuki Sawada,
president of Toshibas
Thailand arm, said that
it currently has about 10
infrastructure and power-
generation projects
underway or negotiation
with government and pri-
vate sector companies in
other countries in the re-
gion including Indonesia,
Vietnam and Malaysia.
Toshiba has made much
progress in the Southeast
Asia region in recent
months, for example
setting up a sales op-
eration in Bangkok which
would take charge of its
infrastructure and power-
generations systems, as
well as announcing the
opening of its Myanmar
omce.
Shein Thu Aung Before the Bangkok
move, all business
transactions involving
power and infrastructure
systems were conducted
from the companys head-
quarters in Japan.
Additionally, operations
for power-system subsidi-
ary have begun in Malay-
sIu und suIes omces Iuve
been opened in Indonesia
as well as Vietnams two
largest cities Hanoi and
Ho Chi Minh City.
Toshiba has been op-
erating in the region for
the last 44 years, since it
opened ILs TIuIIund omce
and is the global market
leader in a range of indus-
tries, in particular power
plants.
Japanese companies
have been hugely suc-
cessful in moving into
Myanmar since the coun-
try began opening itself
up to foreign investment
in 2011. A number of
companies from Japan,
including Hyundai,
Nissan and Mitsubishi
have began operations in
the country while many
Myanmar Summary
Japanese companies have
been successful in being
awarded tenders granted
by the government,
purLIcuIurIy In LIe heId oI
infrastructure.
.,.-~.~.q:,.
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:._ _.,.:.-e_e.~.
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, ..:. ..: q ~ q, ~~ ~
_~ ... ..,_. . _., .:. ~
, .- ~ ~ , .:.-~e . ~:.
. . .~: .. , .:q, ..: .
:.._~:.._. .q._.
~ q :~ . ~ - ..
..,.. ~__e.. Hiroyuki
Sawada ~ e..~q~.,
~ ~.,.q:. -e~,..
....q :.. ~ ~.|~~ ~.q
.~: ~:q ...~ .. . . ~
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S
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p
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H
o
s
s
a
in
y
23
Myanmar Summary
Myanmar Summary
From page 21...(Parliament)
www.mmbiztoday.com
Thui Inergy rink Muker Iyes Myunmur Plunt
T
hai energy drink maker
Carabao Tawandang, the
manufacturer of Carabao
Dang energy drinks, is planning
to open factories in Myanmar
In LIe nexL LIree Lo hve yeurs, u
Lop compuny omcIuI wus quoLed
in the Thai media as saying.
The company is also consider-
ing the building of a factory in
Cambodia, a central part of the
companys plan to penetrate
other Southeast Asian markets.
The planned factory in
Myanmar in the next three to
hve yeurs wouId gIve Curubuo
Tawandang a production base
for exporting its energy drinks
into South Asian countries such
as Bangladesh and India.
Output from the companys
planned factory in Cambodia
would cover that market, as
well being exported to Vietnam.
Thailand, however, will
remain its main production
centre for the ASEAN market.
Carabao Tawandang manag-
ing director Sathien Setthasit
said the company would also
increase the production capac-
ity of its Thai factory by 40
percent, in line with the goal
Aye Myat
of making Carabao Dang the
No.1 energy drink brand in the
ASEAN.
Setthasit said the projected
investment for the companys
future expansion is more than
$33 million, while the Myanmar
factory will get an investment
between $6 and $10 million.
He said the company aims to
increase its sales up to tenfold
in the future, rising up to 50 to
60 million bottles a month.
Setthasit hoped having a fac-
tory in Myanmar will enable
the company to sell drinks at a
cheaper rate in Myanmar.
Carabao aim to become the
top-selling energy drink brand
in the ASEAN with annual sales
of $500 million by 2018, from
$233 million targeted this year.
that were borrowed from
central government in the
years that the country was
run by the military junta,
which came to an end
when a quasi-civilian gov-
ernment came to power in
2011.
It was reported that the
Ministry of Agriculture
and Irrigation owes the
largest amount of money,
an estimated $400 mil-
lion, with the Ministry of
Electric Power next with
debts of $270 million.
The report was pre-
sented to parliament
by the Public Accounts
Committee and urged the
government to develop a
plan for the ministry to
clear the debts.
Speaking to local media
group Democratic Voice
of Burma, Aung Tun Htet,
economic advisor to the
president said that it
would be a challenge for
ministers to resolve the
situation as the money
had been borrowed long
before the current minis-
Lers Look omce.
A coIIecLIve eorL Is
needed to sort out this
issue it could be tough
for the current ministry
omcIuIs Lo resoIve LIe
debts incurred through-
out previous years and
.. - . . .~:._e_ ~. q_
~ . . ._ . . , .~. . _e. ..:
Carabao Tawandang ._ _.,.:
.~ .:._ , ... ..~~.
.~ , .:. ~_ .: . :.q, ~~ ~
_...,._~:. ~.~- .~,.
~...:~..~ ...e:.:..
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~~~ _~......:q~.,._~:.
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.:.._~:. .q._. ...:._.
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.._ ~.~~....,q:~..
~_e. ~,q.,..__e.._~:. .q
._ .CarabaoTawandang-., .,
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~~ . ~ ~.,_e .. .~ , . ~
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_. ..: q ~ . q, ..: . , .:. ._ .
T
h
o
m
a
s
F
u
lle
r
/
N
Y
T
they will have to conduct
a detailed inquiry into
past spending, Aung Tun
Htet reportedly said.
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www.mmbiztoday.com
24
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 3 5 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 3 5 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 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir
TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
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 1:00 6:00 Dragon Air KA250 1 3 5 7 HKG RGN 21:20 23:35 Dragon Air
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
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)
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT YGN 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 YGN 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 YGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT YGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT YGN 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 YGN 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 YGN 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 YGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY YGN 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 YGN 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 YGN 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 YGN 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 YGN 16:00 17:25 Asian Wings
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
PROPERTY & REAL ESTATE
25
Contd. P 26...(Myanmar Property)
www.mmbiztoday.com
Muwlumyine Hoteliers Aim to Bunk on Visitor Sorge
Kyaw Min
T
he city of Mawlamyine in
Myanmars southeastern
Mon state is to get more
upscale hotels as an increasing
number of foreign investors are
taking interest in business op-
portunities in Myanmars third
largest city.
Hotel owners in Mawlamyine
said new hotels will be built
to deal with the surge in both
businessmen and tourists to the
city, which is renowned for its
rubber and marine products.
Currently, there are 17 hotels
[in Mawlamyine] and eight
guesthouses. More and more
foreign tourists are coming
to the city, as well as foreign
businesspeople, so we must
strengthen the citys hotel busi-
ness, U Myint Swe, owner of
Thit Sar Hotel in Mawlamyine,
told Myanmar Business Today.
U Myint Swe added that re-
cently Thai airline Nok Air has
launched new routes connecting
Thailands Mae Sot and Bang-
kok with Mawlamyine, which
led to an increase in foreign
visitors to the city, something
that the hotel industry must be
ready for.
Now, we are seeing new tour-
ists in Mawlamyine every day,
said Ko Aung Than, a Mawla-
myine resident. The majority
come to see popular tourist sites
near the city such as Kyaiktiyo
Pagoda (Golden Rock), Than
Phyu Zayet and Set Se, while
foreign businesspeople look at
investment opportunities, he
added.
Muny sLu members Irom LIe
hotels in the city have also been
sent on security courses in a
bid to provide more protection
to the foreign visitors par-
ticularly, since a series of bomb
blasts rocked the country in
October.
Myanmar Summary
A hotel in Mawlamyine.
K
y
a
w

M
in
Myunmur Property Prices Sorge
As Coontry Opens Lp to Investment
M
yanmars emer-
gence as one of
the worlds great
new commercial frontiers
has sent property values
soaring and triggered
fears that all but the
largest investors could be
priced out of the market.
A combination of an
Inux oI peopIe Irom
overseas and persistent
land and building short-
ages has pushed rates for
prIme omce spuce Lowurds
Michael Peel $100 per square metre
sIgnIhcunLIy IIgIer LIun
costs than in much more
developed countries in
the region such as Singa-
pore, business people and
others say.
As u IIgI-prohIe Euro-
pean investment mission
prepares to visit Myan-
mar in November, the
price surge has prompted
calls for the government
to make more property
available to entice poten-
tial investors already wor-
ried by drawbacks such as
a lack of legal certainty,
infrastructure and trained
sLu.
Part of the problem is
that land and property
held by the military junta
during its half-century
rule still lies unused and
has not been released
into the market, despite
the transition to quasi-
civilian government,
diplomats and business
people say.
One foreigner in
Myanmar who has long
contacts with overseas
companies said many of
those staying on the side-
lines had reviewed oppor-
tunities in the country but
gone through a process of
look, listen, learn, laugh
and leave the laugh be-
ing at property costs.
Everything is so over-
priced, she said. Espe-
cially if you are looking
uL unyLIIng wILI u sIgnIh-
cant land footprint.
While rents in Yangon
have been climbing in the
three years or so since it
became clear the ruling
generals were preparing
to allow the country to
open up sIgnIhcunLIy,
business people and oth-
ers in Yangon say prices
have exploded in the past
year.
Roger GIord, ord
Mayor of London, said
the concern had come up
repeatedly in meetings
his delegation of ex-
ecutives including from
InLernuLIonuI hnuncIuI
and education companies
held during a visit to
Myanmar this month.
One Yangon-based
executive with regional
business interests said
space in some of the small
number of purpose built
omce compIexes In LIe
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www.mmbiztoday.com
26
From page 25...(Myanmar Property)
PROPERTY & REAL ESTATE
Shwe Tuong Tuke 6opc Stuke in
Pun Pucic evelopment
T
Ie Pun PucIhc Yungon
Hotel, a joint-venture
agreed last week between
Pun PucIhc, SIwe Tuung und
City Square Pte Ltd will be com-
pleted by 2016 and will involve
a three-way split of investment,
with Shwe Taung taking the
controlling stake.
The joint venture is to involve
a 20:20:60 split with Pan Pa-
cIhc und CILy Squure LukIng zo
percent each, and Shwe Taung
the remaining 60 percent.
The partnership, which was
formalised as part of a ceremo-
ny in Myanmar last month, will
see Pun PucIhc HoLeIs Group
manage the 348-room, 20-sto-
rey hotel, which also includes
a shopping centre, residences
und omce spuce.
Shwe Taung Group boasts a
diverse business portfolio which
includes property develop-
Oliver Slow ment, retail mall management,
construction and construction
materials, energy and infra-
structure. With a workforce
of 6,000 people, the group is
one of the largest employers in
Myanmar.
Pun PucIhc uIreudy operuLes
the Park Royal Hotel in Yangon
located just a few hundred
metres from the new develop-
ment, which will be located on
Bogyoke Aung San road op-
posite the market by the same
name and the group believes
that its new hotel will further
strengthen its presence within
the country.
The group also revealed that
the Park Royal Hotel will soon
be undergoing refurbishment
to its public spaces, restaurants
and ballroom.
The new hotel will feature an
extensive range of guest facili-
ties including a swimming pool,
spa, gym, ballroom, meeting
Myanmar Summary
Park RoyaI hoteI in Yangon, a hoteI run by the Pan Pacic HoteIs Croup.
P
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The lobby of Park Royal hotel in Yangon.
P
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rooms and dining facilities while
the group has highlighted that
IL wIII oer ImpressIve vIews oI
iconic destinations such as Yan-
gon river, downtown Yangon
and nearby Shwedagon Pagoda.
Having established an early
and successful presence in My-
anmar with Park Royal Yangon,
we are now eager to introduce
our other acclaimed brand,
Pun PucIhc, Lo LIe Myunmur
community and international
guests, said Gwee Lian Khen,
cIIeI execuLIve oI Pun PucIhc
Hotels Group.
Pun PucIhc uIso reveuIed LIuL
it is exploring the opportunity
of opening a hotel in the capital
Nay Pyi Taw, which will host
the 27
th
Southeast Asian Games
next month as well as the
ASEAN Summit in 2014, two
events that are expected to see
a surge of visitors to both the
country and the city.
"With solid, proven creden-
tials as a hotel management
compuny, Pun PucIhc HoLeIs
Group is an ideal partner for us
in promoting the city's progress
through prime developments,"
said Aung Zaw Naing, chief ex-
ecutive of Shwe Taung Group.
Headquartered in Singapore,
Pun PucIhc HoLeIs Group oper-
ates 34 hotels under its Pan
PucIhc und Purk RoyuI HoLeIs.
The group recently announced
that it will be debuting in Indone-
sia in the near future with hotels
in Bogor, on the outskirts of the
capital Jakarta as well as the
popular tourist destination Bali.
city now cost as much as $95
per square metre, roughly three
times the price in Bangkok and
hve LImes LIuL In PInom PenI,
Cambodias capital.
Research from Colliers Inter-
national Myanmar, the estate
agency, said Yangon had passed
SIngupore`s omce renLuI ruLes oI
$;q u squure meLre by LIe hrsL
quarter of this year.
WIen wus hrsL Iere 18
months ago it was $26 and I
was thinking that was a little
too high, the Yangon-based
executive said. Prices are going
up every few months.
As in other fast-growing
emerging markets where an-
ticipation of a boom has sent
property prices rocketing, the
biggest companies from China,
Japan and to a lesser degree
western countries are paying
whatever is needed to tap into
an economy that McKinsey,
the consultancy, has estimated
could more than quadruple in
size to $200bn in 20 years.
But the cost of sending expa-
triates to Yangon is becoming
increasingly forbidding for
other companies especially
the kind of small and medium-
sized businesses due to arrive
on the EU investment mission.
One estate agent who deals
with property in Yangon said
a chronic shortage of serviced
apartments had pushed prices
of a three-bedroom property
aimed at expatriate families to
about $6,500 a month up from
between $2,000 and $2,500 a
month two or three years ago.
That is about twice the price of
property in Bangkok, little more
LIun un Iour`s IgIL uwuy.
Tony Picon, managing direc-
tor of Colliers International
Myanmar, said some compa-
nies were now employing half-
pats as opposed to expatri-
ates who lived in Bangkok but
commuted to Yangon on one of
the budget airlines linking the
two cities during the week and
stayed in lower-grade hotels.
Prices will deter investment
up to a point, he said. But
compunIes become exIbIe.
Business people and diplo-
mats in Yangon say the property
price rises are fuelled in part by
people buying acreage in the
city speculatively and holding
on to it while prices rise, since
there is no penalty for not de-
veloping it.
AnoLIer dImcuILy Is LIuL some
Iund, omces und upurLmenLs
acquired or built by the military
during its rule have not been re-
leased by the administration of
Thein Sein, the president, since
it took power with the generals
blessing in 2011.
Diplomats say Myanmar
governmenL omcIuIs ure sym-
pathetic to the property price
concerns but have taken little
action or are unable to do so
because of the delicate balance
of power under the countrys
new government.
TIe hnunce mInIsLry un-
nounced in August that the
government was considering
new taxes to curb speculation
and steady the market. Levies
on property sales have also
been raised but, said one for-
eIgn governmenL omcIuI, LIuL`s
not really the issue: its people
sitting on land and not selling
it. FT
Myanmar Summary
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IT & TELECOM
27
Contd. P 28...(Internet)
www.mmbiztoday.com
Myunmur's Promising Ixperiment
With Internet Ireedom
Will Greene
A
fter decades of rule by
a brutal regime known
for imprisoning cyber-
dissidents, internet freedom in
Myanmar expanded dramati-
cally over the past year, accord-
ing to a recent report by Free-
dom House. The report warns
that the internet in Myanmar
is still not free, however, and
that major obstacles remain to
further improvement. One is a
legacy of repression that casts a
shadow on the reform process.
Just two years ago, Freedom
House ranked Myanmars inter-
net policies as the worlds sec-
ond most repressive, surpassed
only by Irans, and in the same
Ieugue us serIuI oenders IIke
China and Vietnam. To keep
citizens in the dark, Myanmars
government routinely restricted
internet access and censored
large amounts of online con-
tent, including most foreign
medIu. TIose wIo dehed LIem
faced severe penalties, includ-
ing torture and lengthy prison
sentences.
The restrictions and a poor
infrastructure make Myanmar
one of the worlds least con-
nected countries, according to
the International Telecommu-
nications Union. Massive cov-
erage gaps, glacial connection
speeds, and exorbitantly high
service costs put the internet
beyond the reach of 98 percent
of Myanmars citizens.
The good news is that the
countrys leaders are now
enacting dramatic reforms
that promise a more open
and democratic future for its
long-repressed citizens. Those
related to internet freedom are
having a particularly strong
impact.
The government started relax-
ing limits on content in 2011,
but 2012 was the year that it
om cIuIIy cIunged ILs poIIcy on
media censorship. It unblocked
most previously banned con-
tent, including the websites
of foreign media outlets that
frequently criticised the re-
gime, and stopped requiring
journalists to submit content
to government censors before
publication. In fairly short
order, these policy changes
Myanmar, India Agree to
Cooperate in IT Sector
M
yanmar and India
will cooperate in
enhancement of
information technology skills,
state-run media reported.
A Memorandum of Under-
standing (MoU) on enhance-
ment of information technology
skills was signed between the
Kyaw Min governments of Myanmar and
India in Nay Pyi Taw recently.
The MoU covers conducting
more training courses at India-
Myanmar Centre for Enhance-
ment of Information Technol-
ogy Skills (IMCEITS), turning
the centre into an authorised
training centre of the Centre
for Development of Advanced
Computing (CDAC) in India.
Contd. P 28...(Internet)
Myanmar Summary
Myanmar Summary
Telenor to Bring Wikipediu
Zero to Customers
N
orwegian telecoms
group Telenor has
reached a deal with
Wikimedia Foundation, which
operates online encyclopedia
Wikipedia, to make Myanmar
the latest country to be included
in their existing agreement to
bring Wikipedia Zero to Telenor
customers.
The Wikipedia Zero agree-
ment means that Telenors
future subscribers in Myanmar
will be able to access Wikipe-
Oliver Slow dias vast array of content free
oI mobIIe duLu Lrum c cIurges
once Telenor has begun mobile
phone operations within the
country.
The Wikimedia Foundation
imagines a world in which every
single person has free access to
the sum of human knowledge,
said Carolynne Schloeder,
director of Mobile Programmes
at the Wikimedia Foundation.
By working with Telenor, we
are able to put this knowledge
in the hands of the masses,
helping to close the knowledge
gap between developed and
developing countries. Todays
announcement will pave the
wuy Ior TeIenor Lo oer uII LIe
knowledge that comes with
Wikimedia Zero to its custom-
ers in Myanmar, she added.
The two parties struck a deal
in February 2012, where Tel-
enor customers are able to ac-
cess information on Wikimedia
often thought to be the most
thorough online encyclopedia
without having to worry about
data charges. The initiative is
part of the Wikimedia Foun-
dations strategy of reaching
billions of people around the
world whose primary access to
the internet is via a mobile.
Access to high quality tel-
ecommunications tools and
uordubIe servIces pIuys u
substantial role in developing
societies, said Jon Fredrik
Contd. P 28...(Telenor)
Buddhist monks use the internet in an internet cafe in Yangon.
S
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www.mmbiztoday.com
28
IT & TELECOM
Myanmar Summary
gave the people of Myanmar ac-
cess to a wider range of online
sources than ever before.
This year the government
took a big step towards deregu-
lating the telecoms industry,
which was formerly controlled
by a state-owned monopoly
that lacked the incentives and
experLIse Lo oer wIdespreud
mobile access. In June, it
awarded operating licences to
two foreign companies, whose
entry to the market is expected
to help modernise the countrys
telecommunications infrastruc-
Lure. New servIce oerIngs wIII
likely include mobile data plans
that will help millions get online
Ior LIe hrsL LIme.
These reforms represent
tremendous progress, but
Myanmars newfound internet
freedoms are still untested. Its
un open heId rIgIL now wIIcI
way things will go, says Asia
media expert Madeline Earp,
who edited the Asia section
of the Freedom House report.
The laws that were used to
imprison people are still on the
books, and theres a lot of things
that people are not going to feel
comfortable discussing online
or in print until this changes.
Allegations of continued gov-
ernment interference in online
activities create further chilling
eecLs. n LIe pusL yeur, LIe
government has been accused
of hacking news websites and
the personal email accounts of
From page 27...(Internet)
journalists; throttling the inter-
net to limit public access; cor-
rupt practices in the telecoms
industry; and fomenting ethnic
tension with fake social media
accounts.
Such allegations arise from
a long history of government
abuse, though some are based
on circumstantial evidence and
remain unproven.
Concerns about the gov-
ernments potential role in
IomenLIng eLInIc conIcL ure
particularly serious. In a coun-
try rife with long-simmering
ethnic tensions, some are using
the internet to spread racist
propaganda and harass others.
This not only causes problems
in the short term, but also gives
the government a handy excuse
down the road to roll back its
reforms. Fortunately, voices of
moderation and tolerance have
emerged to counteract some of
LIe more InummuLory cIuIms
that have appeared on the
internet.
Despite such setbacks, the
momentum behind the recent
reforms is undeniably strong
and the potential for greater
access to improve lives is
overwhelmingly positive. For
the sake of Myanmars long-
repressed people, lets hope
these changes stick.
Will Greene is a writer and
digital strategist whose blog,
TigerMine Research, covers
economic development in
Southeast Asia today. Forbes
From page 27...(Internet)
Baksaas, president and CEO
of Telenor Group. To Telenor,
this partnership enables us to
provide strong support to local
communities by promoting the
exchange and sharing of open
knowIedge. OerIng WIkIpedIu
Iree oI Lrum c cIurges uIso IeIps
introduce internet to mobile
users, oILen Ior LIe hrsL LIme,
he added.
Since an agreement was
reached between Telenor
and Wikimedia, special ver-
sions of Wikipedia for mobile
From page 27...(Telenor)
phones have been launched in
Thailand, Malaysia and Mon-
tenegro. Additionally, Telenor
aims to launch Wikipedia Zero
in Pakistan, Bangladesh, India
and Serbia in 2014.
In June, Telenor was an-
nounced as one of the success-
ful international applicants for
a telecommunications license
in Myanmar, alongside Qatari
group Ooredoo.
Wikipedia is available in 287
countries, containing more
than 29 million articles contrib-
uted by a community of roughly
80,000 people.
Telenor and Wikimedia have reached a deal where Telenor customers will have access to Wiki-
media's content free of any internet charges when the telecoms company begins operating
within Myanmar.
R
e
u
t
e
r
s
Myanmar Summary
Lenovo Prots Leup us it
Ixtends ShiIt to Smurtphones
Paul Carsten
C
hina's Lenovo Group Ltd,
the world's biggest per-
sonal computer maker,
suId neL prohL jumped over
a third to a quarterly record
as it extended its cruise into
smartphones and data servers
Lo oseL u gIobuI decIIne In PC
sales.
ReporLIng neL prohL rose
a better-than-expected 36
percent in July-September,
Lenovo said it will continue to
chase acquisitions while min-
ing growth in the market for
cloud computing and back-end
information storage that's lured
companies from rival IBM to
Internet retailer Amazon.com
The ambitious company was
among a range of suitors to
approach BlackBerry before
the troubled device maker took
ILseII o LIe murkeL, uccordIng
to sources familiar with the
matter.
Lenovo, with a 17.3 percent
share of worldwide PC ship-
ments according to research
hrm DC, reporLed neL prohL
oI $z1q.; mIIIIon Ior ILs hscuI
second quarter, its highest
for any quarter, extending its
streak of more than three years
oI doubIe-dIgIL quurLerIy prohL
growth.
TIe prohL compured wILI $16z
million a year earlier, and with
a $199.12 million consensus
forecast on Thomson Reuters
Starmine SmartEstimate.
Lenovo has been aggressively
pushing into smartphones and
servers as it seeks alternative
channels of income to the
shrinking PC market, which
contracted 7.6 percent in the
quarter ended September, ac-
cording to data from research
hrm DC.
"GIven ILs sLrong hnuncIuI
position, Lenovo will continue
to actively look for inorganic
growth opportunities that
would supplement its organic
growth strategy and accelerate
future expansion," Lenovo said
in its earnings statement.
The company also said it
remuIns conhdenL LIe CIInese
economy is recovering.
Yang Yuanqing, Lenovo's
chief executive, hasn't shied
away from expressing his eager-
ness to use a corporate server
business as a way to bundle
more PCs into packages it sells
to customers.
The company has been suc-
cessfully navigating a course
away from PC manufacturing
for years. Revenue from mobile
phone sales more than doubled
In LIe hrsL IuII oI LIe hscuI yeur
ending March 2014 compared
with the same period in the
previous year.
Mobile phone sales accounted
for 14 percent of total revenue
oI $18.6 bIIIIon In LIe hrsL IuII
oI LIe hscuI yeur ended SepLem-
ber. For the year ending March
2010, that share of revenue was
just 0.5 percent.
Lenovo was the fourth-largest
smartphone vendor worldwide
with a 4.7 percent share of a
market that shipped over a
quarter of a billion smartphones
in the quarter ended Septem-
ber, according to IDC data.
Reuters
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AUTOMOBILE
29
Myanmar Summary
Myanmar Summary
Nissans October China Auto
Sales Up 128pc
Kyaw Min
J
apanese auto giant Nissan Motor Co Ltd and its Chinese
local joint-venture sold 114,700 automobiles in China in
October, up 127.8 percent from a year earlier, the company
said last week.
That follows an 83 percent year-on-year jump in September
and a 1 percent increase in August.
The sharp rise in sales was partly due to the low base from
last year. Last September, Japan nationalised disputed islands
in the East China Sea, sparking anti-Japan sentiment in China
that hit sales of Japanese brands hard in the following months.
n LIe hrsL 1o monLIs oI LIIs yeur, NIssun soId 1,ooo,qoo
vehicles, up 7.1 percent from a year earlier.
Nissan makes vehicles in China in partnership with Dongfeng
Automobile Group Co.
Myanmar Summary
www.mmbiztoday.com
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Import Permit Holders See Iinunciul Rewurd
in Porchusing omestic Aotos
Htet Aung
H
olders of new for old
import permits in Yan-
gons automobile mar-
ket are commonly buying older
cars within Myanmar rather
than importing from abroad
due to the domestic models
being cheaper, according to
Yangon auto market sources.
In 2011, the government
introduced a New for Old
programme aimed at improving
the quality of cars on the coun-
trys streets, where car owners
could exchange their older
models of cars for newer, more
IueI em cIenL und cIeuner ones.
As part of this campaign, car
owners were given an import
permit or pink slip of the
value of their car, which they
could exchange to import newer
models of cars.
The price of the permit can
be as high as K11.8 million
($12,160) and with some do-
mestic models, most notably
the Toyota Probox sometimes
available for K1.15 million
($11,850), customers are in-
creasingly purchasing the cars
that are already in the country
rather than importing them
from abroad, according to U
Min Oo, head of the Automobile
DeuIIng AssocIuLIon Om ce.
Myanmars car market has
seen huge progress since the
programme began in 2011 and
is cited as one of the industries
that are expected to grow
hugely amid the countrys cur-
rent rapid wave of reforms.
International car giants
including Ford, KIA, Hyundai
and Chevrolet have begun their
operations within the country
in recent years.
A staff opens the boot of a car at a showroom in Yangon.
S
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BMW Prots Held Buck By
Investment in New Models
Long-term future more important than quick proft: CFO
Andreas Cremer
BMW CEU Norbert Reithofer (2nd R) and BMW board member Peter Schwarzenbauer (I) stand
on stage with the new BMW i3 aII-eIectric car at an unveiIing event for the vehicIe in New
York. The i3 is the worId's rst premium eIectric vehicIe designed from the ground up to be
powered by an electric drive system, according to BMW.
M
ik
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s
B
MW, the worlds biggest
luxury carmaker, said
investment in technology
and new models such as the i3
electric car would hold back
fourth-quarter earnings, after it
reported a bigger than expected
drop In LIIrd-quurLer prohL.
The German group, which
is spending heavily in a bid to
stay ahead of rivals Mercedes
and Audi, also said on Tuesday
quurLerIy prohLs were weIgIed
down by discounts to lure cash-
strapped European buyers and
warned demand for cars in the
region might not rebound until
the second half of next year.
European car sales slumped
to their lowest six-months total
In zo yeurs In LIe hrsL IuII oI
2013 amid record unemploy-
ment and government austerity
measures, though there have
been signs recently that demand
is at least stabilising.
Premium carmakers have
fared better than mid-market
rivals, particularly thanks to
strong demand from China, and
BMW defended its investment
in launching 25 new models
this year and next, including
the all-electric i3 city-car that
will hit showrooms this month.
Its our goal to ensure the
competitiveness of the group
over LIe Iong Lerm, suId hnunce
chief Friedrich Eichiner. Thats
more relevant than short-term
prohL. Reuters
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www.mmbiztoday.com
CLASSIFIEDS
30
SOCIAL SCENES
31
Celebrities Tan Tar Win (2
nd
L) and Swe Zin Htike (3
rd
L) at the event.
Phyu Tit Lwin
www.mmbiztoday.com
Yangon Region Chief Minister U Myint Swe gives a speech during the opening ceremony of China industry expo-Myanmar in Yan-
gon. U Aung/Xinhua
Wyne Wyne Pyae signs a document. Phyu Tut Lwin
Shalini Bahuguna (L), deputy rep-
resentative of UNICEF Myanmar
and Zaw Myo Hlaing, country di-
rector for Unilever Myanmar Ltd,
at a signing ceremony last month.
UNICEF and Unilever Myanmar
have partnered to run a 'Creating
Hygienic Environment in Schools
for Children project in Myanmar.
Unilever
Yangon Region Chief Minister U Myint Swe (C) attends the opening ceremony of China industry expo-Myanmar in Yangon.
U Aung/Xinhua
An exhibitor arranges necklaces during the China industry expo-Myanmar in Yan-
gon. U Aung/Xinhua
Motorcycles are seen during the China industry expo-Myanmar in Yangon.
U Aung/Xinhua
A visitor views construction tools during the China industry expo-Myanmar in Yangon.
U Aung/Xinhua
China Industry Expo in Yangon
Ooredoo and Yangon Youth Forum Sponsorship Agreement Signing Ceremony @
Park Royal Hotel
Yangon Youth Forum representatives with Ooredoo Myan-
mar CEO, Ross Cormack. Phyu Tit Lwin
Wyne Wyne Pyae with Yangon Youth Forum representa-
tives. Phyu Tit Lwin
Representatives from Ooredoo and Yangon Youth Forum
pose for a photo. Phyu Tit Lwin
Ross Cormack speaks on stage. Phyu Tit Lwin Ross Cormack signs a document. Phyu Tit Lwin
Representatives from Ooredoo and Yangon Youth
Forum on stage at the event. Phyu Tut Lwin
Creating Hygienic Environments in Schools for Children event
between UNICEF and Unilever
Voice of Women, Second Women Forum @
Inya Lake Hotel
Swe Zin Htike speaks at the event. Phyu Tit Lwin
www.mmbiztoday.com
32
ENTERTAINMENT
A Guide to Yangons Museums
I
t is a commonly heard
complaint from visitors
that there is not much to
do in Yangon. After visiting
the Shwedagon Pagoda, a few
other religious sites around the
city and some day trips to the
citys outskirts, people often
hnd LIemseIves venLurIng Lo
other parts of the country very
quickly. However, as a tourist
destination, Yangon has an
underbelly of activities that
very few people know about.
Of those, there are a fair few
museums that exhibit the rich
heritage in the country, as well
as a few oddities.
Nati onal Museum
Housed in an ugly, Soviet-
style building on Pyay road, the
National Museum exhibits six
oors oI dIspIuys ceIebruLIng LIe
Oliver Slow countrys history, from tradi-
tional art to clothing, to natural
IIsLory. OI course, some oors
are much more interesting
than others and one particular
IIgIIIgIL Is LIe hrsL oor, wIIcI
houses exhibitions including
the evolution of the Myanmar
Iunguuge; u room hIIed wILI
reIIcs Irom LIe counLry`s hnuI
kings Mindon and Thibaw
as well as the impressive Lions
Throne.
Sounding, and looking, very
much like something out of The
Game of Thrones, the Lions
Throne is the only surviving
throne [of eight] from King
Thibaws rule. Its an outra-
geously intricate and over-the-
top object but is quite an incred-
ible specimen. Since this could
only be used by the King at the
time, it is said that anyone who
LrIes Lo puss LIe |IrunkIy Imsy|
rope and ascend the steps can
still be arrested today.
Dr ugs Er adi cati on
Museum
This museum has been fea-
tured on these pages before and
continues to be a quirky place
that few know about. Built on
the site of an old cemetery, the
museum was built in the late
1990s as part of the previous
governments campaign to
show how seriously they were
taking the drug problem in the
country.
Despite some oddities most
notably the mechanical hand
of death which protrudes from
the ground and the regular
signs declaring that drugs are a
'IoreIgn` Inuence - IL does oer
some useful information about
something that continues to be
a huge issue in the country.
Like most museums in the
cILy, IL wouId Iowever benehL
from some additional signage
of some of the exhibits.
Planetar i um
The dome-shaped Planetari-
um in Peoples Park (accessible
from Ahlone road) was opened
in 1987 as a gift from the Japa-
nese government. Approaching
the entrance, the shocked em-
ployees give you the impression
that it doesnt attract too many
visitors and sitting in the plan-
etarium entirely alone but
still not allowed into the VIP
section that became obvious.
TIe GrIm LI ObservuLory LIIs
is not, but the graphics them-
selves are more impressive than
I anticipated, apart from the
odd moment when a few dino-
saurs bounce along the screen.
What is frustrating though is
that the narrator speaks in such
heavily-accented English that
its impossible to make out a
word he has said.
Nearby is also a grounded
Myanma Airways plane where
youre able to look at the in-
tricacies of a cockpit from the
1970s.
Bogyoke Aung San
Museum
The museum celebrating
Myanmars independence hero
wus Aung Sun`s hnuI resIdence
before his assassination in
1947. The colonial-era, two-
storey building was built in
1921 and is where his daughter
Aung San Suu Kyi grew up, it
was also here that Suu Kyis
brother Aung San Lin drowned
in a swimming pool.
The museum mostly focuses
on the generals short adult life
[he died aged 32] and includes
memorabilia such as clothes,
books, family photos and his
car.
For many years, the museum
was opened only on Martyrs
Day the anniversary of his
assassination but has since
been opened year-round.
The back garden of Bogyoke Aung San Museum.
F
ile
s
The Yangon Planetarium on Ahlone Road.
O
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