AP - Myanmar aims to leave least-developed status
Myanmar leader says clearing
debt is first stage in escaping least-developed nation status
By Aye Aye Win,
| Associated Press – 9 hours ago
YANGON, Myanmar (AP) -- Myanmar's reformist president said
Friday that his country's recent clearing of billions of dollars of foreign
debt is its first step toward ending its least-developed nation status.
Thein Sein said in his second radio address to the nation
that his government has successfully negotiated with international financial
institutions and donor countries to clear more than $6 billion in decades-old
debt.
He said he told parliament he would try his best to help
Myanmar's economy grow and end its least-developed nation status, and clearing
the debt was the first move in achieving this.
Since taking power in 2011 as an elected president, Thein
Sein has instituted political reforms after almost five decades of repressive
military rule. That has prompted Western countries to ease long-standing
political and economic sanctions against Myanmar.
Thein Sein has declared that his government's second
stage of reforms will focus on economic growth.
Clearing the debt will allow Myanmar access to new
much-needed aid to jump-start its lagging economy.
Myanmar, then called Burma, was declared a
least-developed nation by the United Nations in 1987. The status is given to
countries with the lowest indicators of socio-economic development according to
the U.N.'s Human Development Index.
Myanmar had one of the region's strongest economies in
the 1950s but plunged into a decline after a coup in 1962 instituted military
rule with a socialist bent.
In his speech, Thein Sein said Norway, Japan and other
countries that agreed to write off part of Myanmar's debt burden "have
proved themselves as good friends of Myanmar in crucial times and we have to
acknowledge their assistance."
The World Bank and the Asian Development Bank cleared
Myanmar's outstanding debt to them of about $900 million with a bridge loan
from the Japan Bank for International Cooperation on Jan. 27. It allows them to
make new development loans to Myanmar.
The deal was a major breakthrough for Myanmar, with the
new loans likely to go to upgrading its dilapidated infrastructure, including
electricity and ports. The knock-on effect would be to bring in more foreign
direct investment.
Thein Sein pledged that the new funds will be used in a
transparent manner for reducing poverty and improving infrastructure.
*************************************************************
AP - Myanmar's first international literary festival
opens amid newfound freedoms of expression
By Erika Kinetz, | Associated Press – 18 hrs ago
YANGON, Myanmar (AP) - The latest first for fast-reforming
Myanmar — its first international literary festival — is putting the spotlight
on dozens of the country's authors, a number of whom once spent time in prison
for their writings.
The Irrawaddy Literary Festival, which runs from Friday
through Sunday, comes as Myanmar relaxes its censorship rules, bringing new
freedom of expression to the country's authors, journalists, bloggers and
comedians. More than 100 authors from around the world are attending, including
Nobel Peace laureate Aung San Suu Kyi, the opposition leader who spent the
better part of two decades under house arrest before being elected to
parliament last year.
"We still take some care," said Pe Myint, who
has written 42 books and numerous short stories. But, he added, for the last
two years he has been able to publicly criticize the government, a once
unimaginable right.
Myanmar was controlled by a military junta for half a
century before sweeping political reform brought a rush of business and
cultural engagement with the outside world. Some of the most striking changes
have centred on speech and press freedoms.
Myanmar shut its censorship office in August and a week
ago officially rebranded the Press Scrutiny board, which was responsible for
censoring publications, as the Copyrights and Registration Division.
Authors must still submit their books to the government
for approval before distribution, and some of the old laws used to jail
dissident writers remain on the books. But local authors say that for the most
part, censors have put down their red pens and they can publish freely.
"Wild Swans" author Jung Chang, India's Vikram
Seth, British historian Timothy Garton-Ash and New Delhi-based writer William
Dalrymple — a force behind India's hugely successful Jaipur literary festival —
are scheduled to attend this weekend's festival, along with about 80 authors
from Myanmar.
"I feel extremely happy the festival can happen at
all," said Jung Chang, whose books are banned in China. "Wild
Swans," a bestselling family saga set against the backdrop of contemporary
China, recently became available in Myanmar.
"I dream for the day when my books can be read in
China," she said.
There have several other cultural "firsts" in
Myanmar in recent weeks: its first marathon, its first big foreign rock concert
— by Jason Mraz — and its first New Year's Eve countdown, an event
inconceivable under old laws that banned public gatherings.
Myanmar's literature is little known abroad, thanks to
decades of isolationist rule and a lack of translation.
Only a handful of books have been translated from Burmese
into English. It is difficult if not impossible for foreigners to read the work
of leading local authors like Ju, Ma Thida and poet Saw Wai, who have helped
shape Myanmar's tradition of literary dissent.
The few authors known overseas — like Thant Myint-U, now
a government adviser, and Pascal Khoo Thwe, the first Padaung tribesman to
graduate from Cambridge University — have lived for long periods abroad and
wrote in English. They are not seen here as truly local authors.
The old government restrictions on publication have also
cut off local readers from global authors. The international literature
available here has, by and large, been limited to redacted versions of Russian
and Western classics, by writers like Anton Chekhov, Leo Tolstoy, George Orwell
and John Steinbeck.
Friday morning at the festival, dozens of students
crowded around a table with a motley assortment of secondhand books for sale.
"It's very important for the students of Myanmar
because there is contact with foreigners," Arker Kyaw, an 18-year-old
student of English, said of the festival. "I know only Leo Tolstoy."
He didn't recognize any of the foreign authors scheduled
to speak and has little guidance through the world of contemporary English
letters. He hugged a brown bag of books he'd bought for his friends, including
"Spearwielder's Tale" by R.A. Salvatore and "The Terrible
Hours" by Peter Maas.
The festival director is Jane Heyn, wife of the British
ambassador to Myanmar. Sponsors include Yoma Strategic Holdings and Myint &
Associates, companies that have been cultivating international business
partners as the U.S., Europe and Australia unwind economic sanctions against
Myanmar.
*************************************************************
AFP - Myanmar festival celebrates new literary freedom
Agence-France Presse – 7
hours ago
Dozens of renowned international and local writers
gathered Friday at Myanmar's first international literary festival to celebrate
the country's new-found freedom of expression.
Authors hailed the festival -- supported by Nobel Peace
Laureate Aung San Suu Kyi -- as a breakthrough for creativity after years lost
to stifling censorship rules under the generals who ruled the country for
decades.
"There was no freedom at all before," said poet
Saw Wai, who was jailed under the former junta for writing a satirical poem
about the regime.
"As censorship has been abolished, we have become
able to be more free and open," he said, adding that poetry and cartoons
were becoming increasingly "bold" with their satire.
For decades censors vetted every article, book
manuscript, photograph and illustration before publication, eliminating
anything considered inflammatory or damaging to the nation's former military
rulers.
But the quasi-civilian government that took office in
early 2011 has effectively abolished direct censorship as part of the reforms
sweeping the country.
Organisers of the Irrawaddy Literary Festival want to
exploit Myanmar's new freedoms to encourage bolder writing and debate.
"When I saw how difficult it was to buy a book --
new books or modern literature at all -- that's what give me the idea,"
said event organiser Jane Heyn, the wife of the British ambassador to Myanmar.
"The main purpose of the festival is to provide a
platform to exchange ideas, to exchange writing and discussion."
Around 25 international authors and some 120 local
writers and poets are participating in the three-day festival at Yangon's Inya
Lake Hotel.
In a scene that would have been unthinkable under the
junta, visitors openly browsed Suu Kyi's books along with other literature at
stalls and exhibition displays blanketing the waterside lawns.
Vikram Seth, author of "A Suitable Boy",
historian William Dalrymple and China's Jung Chang, who penned the epic
"Wild Swans", will join Suu Kyi -- herself the author of several
books -- for a panel discussion on Saturday.
One debate on Friday was due to cover the future of
freedom of speech with renowned poet-comedian Zarganar and dissident author Pe
Myint on the panel.
"For many years we didn't have a chance to
collaborate like this. We've never experienced an international festival
before," Pe Myint said.
Visitors browse books on sale at a stand outside a hotel
hosting Myanmar's first international literary festival, in Yangon on February
1, 2013. Dozens of renowned international and local writers gathered Friday at
Myanmar's first international literary festival to celebrate the country's
new-found freedom of expression.
Chinese author Jung Chang speaks during the opening
ceremony of Myanmar's first international literary festival, in Yangon on
February 1, 2013. The Irrawaddy Literary festival opened with a host of
luminaries from the book world due to speak alongside talented local authors
and event patron Aung San Suu Kyi.
*************************************************************
AFP - Myanmar's Suu Kyi urges 'more human' democracy
AFP News – 18 hours ago
Myanmar's Aung San Suu Kyi called Friday for democracy
with a "more human" face, arguing that technological development and
economic wealth were no guarantee of a free and harmonious society.
Speaking to students after receiving an honorary
doctorate from Seoul National University, the 1991 Nobel peace laureate said it
was up to the younger generation to ensure that development brought peace not
strife.
"I'd like to talk about democracy with a more human
face, with a kinder face, with a more responsible face -- a democracy that is
really meant to nurture people, not to help us get ahead on the road to
material development," she said.
"The kind of nation I'd like to see my country turn
out to be is one which emphasises some of the human values which seem to me to
have been lost along the way to economic development.
"Compassion, kindness and harmony" are
"absolutely necessary for our world today", she added.
Her comments are likely to resonate in South Korea where
rapid economic development has resulted in a hyper competitive, high-stress
society and widening income gaps.
Suu Kyi arrived in Seoul on Monday on her first ever
visit to South Korea.
As well as meetings with outgoing President Lee Myung-Bak
and his successor Park Geun-Hye, she was guest of honour at the opening of the
Special Winter Olympics in Pyeongchang.
On Thursday night she had a special dinner with a host of
South Korean soap opera stars, one of whom she had personally invited because
of his resemblance to her assassinated father.
Ahn Jae-Wook, a popular singer and actor, starred in the
1997 TV drama "Star in My Heart", which was a big hit in Myanmar.
"She told me 'you look just like my father. He was
very handsome'," Ahn told the Yonhap News Agency after the event.
*************************************************************
Reuters - Carlsberg returns to Myanmar after sanctions
eased
Fri Feb 1, 2013 9:38am EST
By Mette Fraende
COPENHAGEN, Feb 1 (Reuters) - Danish brewer Carlsberg is
returning to Myanmar following the easing of international sanctions which
forced it out of the country in the mid-1990s.
The world's fourth-largest brewer said on Friday it had
signed a deal with its former partner, privately-owned Myanmar Golden Star
Breweries, to build a new brewery in a country where it expects beer
consumption to grow sharply.
"There is no doubt that this will go fast,"
Carlsberg's Chief Executive Jorgen Buhl Rasmussen told Reuters from Myanmar
before an inauguration ceremony in Yangon on Friday. "With the change
Myanmar has seen and will see, there is huge potential in this market."
The joint venture, in which Carlsberg will own 51
percent, will cost at least $50 million in the first couple of years.
Since taking office at the head of a quasi-civilian
government in 2011, President Thein Sein has freed political prisoners, lifted
restrictions on the media and begun to reform the economy with a new foreign
investment law and an exchange rate determined more by market forces.
In response, Western countries have eased sanctions
imposed on Myanmar's previous military government.
Previously Carlsberg and Myanmar Golden Star were in a
partnership under which Carlsberg beers were imported into the country and sold
there.
"When the sanctions were lifted, it was natural for
us to contact them again, so we did," Rasmussen said.
Construction of the new brewery marks a further step to
increase Carlsberg's foothold in the fast-growing Asian region that has become vital
for global brewers seeking growth as Western European markets slow.
CATCHING UP
Myanmar's 60 million inhabitants on average drink about 4
litres of beer per year, a consumption which Carlsberg expects to grow more
than 7 percent per year and catch up eventually with neighbouring countries.
Thais on average consume around 25 litres of beer per
year, while people in Laos, Vietnam and Cambodia drink 30 litres.
The new brewery is expected to be fully operational next
year, with an annual capacity of 1 million hecto litres, which there is
potential to expand in the future.
Total beer consumption in Myanmar is around 3.5 million
hecto litres per year, the brewer said.
Carlsberg said the investment carried some risks, but it
felt the political situation was now stabilising and was confident it could
bring its own ethical practices along with the investment.
Asia has become a battle ground for the world's biggest
brewers, seeking acquisitions as they rely on emerging markets and price rises
to offset sluggish demand in western Europe and stiff competition in mature
markets. Toughened regulations for alcohol have also cooled growth in Russia
Asia accounted for 18 percent of Carlsberg's total sales
volume in 2011 and 12 percent of its operating profit.
In November, Carlsberg increased investment in Chinese
Chongqing Jianiang Brewery Co Ltd to 49.58 percent and raised its stake in
Vietnamese brewer Habeco to 30 percent.
Dutch rival Heineken said two weeks ago it would take
full control and delist Asia Pacific Breweries in February.
*************************************************************
IANS - Myanmar opening new economic era: Thein Sein
By Indo Asian News Service |
IANS – 15 hours ago
Yangon, Feb 1 (IANS) Myanmar President U Thein Sein Friday
said his country is opening a new economic era and will use new international
loan assistance in a transparent manner for public interest.
Noting that Myanmar could reduce international debt of
over $6 billion after successfully coordinating with major donor countries,
Thein Sein recognized in his speech on radio to the nation the help of Paris
Club member countries including Norway and Japan, reported Xinhua.
Thein Sein said: "Funds of dollars in millions will
be used for standing tall as a responsible country, poverty alleviation for
country development, construction of schools, hospitals, roads and bridges,
power generation and supply of potable water."
Underlining that Myanmar could take an important step
towards re-entry into international monetary market and economic community,
Thein Sein said the progress is also a first step to take Myanmar out of Less
Developed Country (LDC) list.
He outlined that plans are underway for development of
small and medium enterprises (SME) which is crucial for economic development
and poverty alleviation.
Attributing the present political achievement to
collaboration of the government, the parliament, the armed forces, civil
society organizations and the people, Thein Sein said: "Democracy cannot
be practiced just by holding elections. It means the knowledgeable entire
people can make their own choice without suppression and restrictions."
He revealed government's intention to resurrect the civil
society organizations that took an important part in successive eras.
He specially emphasized political stability, internal
stability and national unity to make success of reform efforts.
He warned that it is high time to enter negotiation table
and find solution to stop loss and damage and establish genuine peace with
regard to internal armed conflicts.
*************************************************************
HRW: Myanmar reforms over-hyped
Published: Feb. 1, 2013 at
1:28 PM
BANGKOK, Feb. 1 (UPI) -- Political reforms embraced by the
government in Myanmar have been oversold by members of the international
community, says Human Rights Watch.
Myanmar, known formerly as Burma, embarked on political
reforms, starting with general elections in 2010. Since then, the United States
and other governments have eased sanctions on Myanmar.
Phil Robertson, deputy director of Asia affairs at Human
Rights Watch, said praise for the former military junta should be balanced.
"Burma's reforms over the past year are hindered,
not helped, by international oversell and hasty praise in the face of continued
serious human rights abuses," he said in a statement from Bangkok.
While democracy doesn't develop "overnight," he
said, the country still has mounting rights challenges ahead.
The government recently lifted bans on public gathering,
though some lawmakers there expressed concern that certain Internet
restrictions remained in force.
Robertson said Washington and its allies need to address
lingering concerns in Myanmar like political prisoners and ensuring
accountability for alleged war crimes.
"Foreign governments should recognize that Burma's
history shows that a tough response to rights abuses doesn't derail reform but
promotes it," he said.
*************************************************************
The Nation - Myanmar welcomes peace overture from Kachin
rebels
February 2, 2013 9:56 am
Yangon - Myanmar welcomed a ceasefire proposal by Kachin
insurgents who have been a target of an army offensive for the past 19 months,
media reports said Saturday.
"From the beginning, the government of Myanmar has
believed that the genuine peace desired by all can be achieved only through
political dialogue," said an official statement published in the
state-owned New Light of Myanmar.
The government has come under increasing international
criticism for failing to end its offensive against the Kachin Independence
Organization (KIO) in the Kachin state.
The conflict has left hundreds dead and displaced up to
90,000 people, many of whom have been denied access by United Nations relief
organizations and other aid providers.
"The KIA (Kachin Independence Army) will not
undertake military activities that may cause problems if the Myanmar army
suspends the military offensives," the KIO’s Central Committee said
Friday.
"The KIO will request assistance from organizations
and countries which can help bring genuine peace," it said.
*************************************************************
Rappler.com - Visa credit cards make Myanmar debut
by Agence France-Presse
Posted on 02/01/2013 8:23
PM | Updated 02/01/2013 8:23 PM
YANGON, Myanmar - US credit card giant Visa launched
electronic payments in Myanmar on Friday, February 1, marking the long-awaited
debut of plastic in a country that until now has had a cash economy.
For years visitors to Myanmar have had to carry wads of
notes to pay hotel and restaurant bills, following US sanctions on the former junta
that barred American financial services firms from entry to the country.
But Myanmar's startling reform process led Washington to
ease its restrictions last year and has prompted a tourist boom -- a record one
million foreigners visited in 2012 -- pressing home the demand for cashless
payments.
Visa customers will now be able to use credit and debit
cards at "select merchants", the company said in a statement,
although it listed just one restaurant for the start of point-of-sale payments.
The company, which in December also began rolling-out a
network of ATMs across the country, is working in conjunction with Myanmar
Oriental Bank which will process the payments, the statement added.
As part of a raft of reforms sweeping the country,
Myanmar has also set its sights on overhauling its battered and distrusted
banking system, a move that analysts say could pave the way for foreign lenders
to open branches. -
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Quartz – Investors, beware: It’s a bumpy ride on the new
Burma Road
By Commentary | Quartz – Thu,
Jan 31, 2013
Myanmar began and ended 2012 as the frontier market on
everyone’s mind. As a large, populous and strategically located country,
Myanmar naturally invites the imagination to marvel at its possibilities—and
investment opportunities. The powers that be are keen to modernize but still
cautious about how quickly they open up. When it comes to foreign investment,
the powers that be are still cautious in supporting modernization. But that
will increasingly give way to pent-up foreign capital as the government opens
up markets. And just as the Burma Road made Myanmar the playground of
exploitative colonial forces during World War II, inflows of overseas money
could challenge the young country as it looks to follow a sustainable path of
economic development.
Dodging the resource curse
The first item of concern is the looming threat that
emerging market-watchers know all too well: “Dutch disease,” the weakening of
non-resource industries that occurs when foreign investment reaps the rewards
of abundant natural resources. It’s already happening: unprecedented inbound
FDI and steadily growing hydrocarbon exports have made the kyat the world’s
strongest performing currency of 2012, causing fisheries, farmers, and other
exporters to suffer serious setbacks.
The 2012 Investment Law maintains restrictions on sectors
such as agriculture and small-scale manufacturing in order to boost local
farmers and industrialists, and requires foreign firms to hold at least $5
million in cash deposited in local banks. But there are more powerful forces
gathering on the horizon. 2013 will be the year that the government either
devalues the currency or liberalize the exchange rate regime to reconcile the
government and market rates. Meanwhile, insiders are openly worried about the
proposed ASEAN Free Trade Area (AFTA), expected to come into effect in 2015,
which could open the floodgates to imports from more competitive neighbors.
Furthermore, with such underdeveloped capital markets, the cost of borrowing
for Burmese businesses is effectively 25%, while Thais and Malaysians can lever
up more cheaply and expand aggressively.
The coming building boom
Then there is the infrastructure gap. Without widespread
and stable electricity generation, competing economically with Thailand and
Vietnam will remain a distant dream. The World Bank Group has re-focused on
Myanmar, working to bridge the gap between regional investors from Japan and
Korea and government agencies responsible for power, transportation and other
key sectors. Hydropower projects are high on the agenda, but also power
transmission to less-developed regions—which is almost the entire country.
The opportunities in addressing these needs could attract
international investors, says Kevin Lu, the Asia-Pacific director for MIGA, the
World Bank’s political risk insurance arm. “Investors are fascinated by
Myanmar,” says Lu. “They see a country with strong economic fundamentals,
strategic location, sizable population, and many industries that are starved of
capital.”
But absorbing that capital is as deep a bureaucratic
problem as the infrastructure gap is a physical one, though. Investors seeking
to buy into existing companies face due diligence obstacles as basic as
establishing ownership and titles for land and other assets, and accessing
balance sheets and financial information—to say nothing of the lack of a notion
of modern corporate governance. Another problem is deeply entrenched structural
corruption—the country ranks 180 out of 183 on the Transparency International
Corruption Perceptions Index.
Developing human capital
That suggests that, in many ways, it’s an environment
still better suited to venture capitalists—investors prepared to build lasting
relationships with local partners, and whose on-the-ground experience helps
them appreciate the vagaries of local markets. One such investor, managing
director of Andaman Capital Partners Kevin Murphy, says that investment in
Myanmar requires more than just capital. A 10-year resident of Myanmar, Murphy
advocates intense guidance for structuring and managing early-stage businesses
combined with a lot of patience. But, like many I spoke with, he is an
optimist.
One of the noblemen of the Myanmar business community,
Serge Pun, also counts himself among the optimist ranks. As such, Pun, whose
Yoma conglomerate spans real estate, retail, and many other sectors, welcomes
foreign capital and involvement. “Government protectionism often protects
something that doesn’t exist: competitive enterprises,” he says. “Instead, we
need to invite in players that are filling market gaps, learn from them, work
with them and profit from them. In due course, if we are good, we will be able
to stand on our own and be competitive in our own backyard.”
This is true even in infrastructure—something that the
experience of Ken Tun, the repatriate
head of Parami energy, can attest to. Ken Tun’s efficient oil and gas field
services have made Parami the preferred partner for foreign energy majors, and
it has engaged in numerous joint ventures and built its internal capacity while
preserving its local identity through corporate citizenship programs.
An entrepreneurial class on the rise
While doing business in Myanmar is still an uphill battle
for anyone, Yangon’s new class of young elites, comprised of both “re-pats”
like Ken Tun and locals, is getting in early on the Myanmar growth
juggernaut—paving the way for future newcomers. For many of these, the aim of
their ventures is not merely to spark enterprise, but also to boost the skills
of the country’s next generation. Their challenges are considerable. Right now,
a university degree is like an “empty bag,” in the words of one start-up
founder. Yangon University, once a Silk Road jewel, has suffered decades of decay
at the ends of socialist mismanagement. But Myanmar’s literacy rate is quite
high, and there is enormous motivation to acquire the skills needed for key
vocational sectors such as hospitality, construction, IT, energy services,
healthcare, and education itself.
Alisher Ali of Silk Road Management, who has raised a new
venture capital fund in Myanmar, views these re-pats as crucial drivers of new
growth for another reason: because so many of them lack political connections,
they have to rely on their talent and skill to get things done. Ali’s Myanmar
Human Capital Fund is intended to finance precisely such corruption-free
ventures.
Stepping into the modern financial era
After decades of economic isolation, Myanmar’s banks are
now little more than vaults with staff. That will need to change if the country
hopes to support entrepreneurial growth. The demand for credit among Myanmar’s
few privately run businesses is already building. Thaung Su Nyein, CEO of
Information Matrix, which runs 7Day News and a range of other publications, is
expanding his conglomerate into IT services and education as well. He wants to
see far more of the close to three million migrant Burmese workers in Thailand
and Malaysia come back home to work in new value-added supply chains, from
textiles to gem processing. “Entrepreneurs here know which business models will
work and how to teach skills,” he told me at his office in Yangon. “The weak
credit system is our biggest obstacle.”
There are already some good signs, though. The banking
system recently joined the SWIFT network, ATMs are appearing, and Mastercard
recently registered its first transaction. Foreign banks such as Standard
Chartered and Singapore’s DBS all covet the license to operate, expected in the
coming year. Meanwhile, the country’s first stock exchange is scheduled to open
in 2015.
The FDI showdown in Myanmar’s SEZs
Perhaps the sites of greatest expectations are Myanmar’s
special economic zones (SEZs). The Thilawa economic zone at the mouth of the
Yangon River about 25 kilometers south of the city already features a
deep-water facility operated by Hutchison Port Holdings. Singapore’s SingBridge
is breaking ground on one of its signature industrial estates reminiscent of
its massive-scale projects such as Tianjin Eco-City and Guangzhou Knowledge
Village in China. The Thailand-backed Dawei SEZ is the most expensive and
ambitious to date: an $8.6 billion mega-port on the Andaman Sea that will allow
for speedier transport of maritime cargo across Southeast Asia to China. But
both Thailand and Myanmar are courting a different major investor to accelerate
the project: Japan.
The way Japan has moved into Myanmar, one would think
that its World War II imperialism has been forgotten. With a major presence in
the Thilawa SEZ, Japanese contractors have plans to deepen the Yangon River’s
estuary so that cargo ships can sail directly up to the city’s shores and
offload more containers of cars that are already been briskly snapped up at
busy dealerships. With China and Vietnam considered to be at capacity in
low-cost manufacturing, and other Southeast Asian labor getting too expensive,
Japan is keen to turn Myanmar into its new Thailand. For its part, the U.S. is
stepping up as well with large firms such as GE scoring initial contracts for
medical devices. Pepsi, Google, Caterpillar, and Johnson & Johnson are
among the non-oil blue-chip companies that have already made exploratory
visits.
The real winners, however, will likely be Myanmar’s
fellow ASEAN members, who have patiently been scaling up through representative
offices and lobbying quietly for greater access. Singapore’s SingTel, for
example, is likely to be a big winner in the first round of telecom
liberalization expected in early 2013. Mobile phone penetration is expected to
grow from the present 3 million to perhaps 30 million (half the population)
within just a couple of years as SIM card prices fall from over $2,000 to under
$200. Malaysia’s MayBank, has been courting the extensive one million strong
Burmese diaspora to use its remittance channels. Singapore alone has at least
50,000 Burmese expatriates, and the island nation’s Peninsula Plaza generates
hundreds of millions of dollars in annual remittances to Myanmar through its
restaurants, textile shops, travel agencies, and gem-sellers.
From “Burma Road” to Myanmar gateway
While major structural undermine Myanmar’s domestic
liberalization and commercial opening-up, forces such as the country’s illegal
narcotics trade and simmering geopolitical tensions pose big challenges to a
young government. But with a new pragmatism holding firm in Naypyidaw, Myanmar
seems to be deftly playing all sides, emerging from isolation and keen to
maximize its strategic geography as a bridge between Asia’s giants, India and
China. The Burma Road was once the snaking artery built through back-breaking
labor to enable colonial Britain to deliver supplies to China during World War
II as Japan marched through Indochina. Soon it will be a major axis across a
thriving economic corridor, and a new gateway to Asia for travelers and
investors from around the world.
*************************************************************
L&T signs $100-mln contract with Petronas Carigali
Myanmar for offshore project
Contify Investment – Wed, Jan
30, 2013
New Delhi: Indian engineering major Larsen & Toubro
Ltd has signed a contract worth over $100 million with Petronas Carigali
Myanmar (Hong Kong) Ltd for executing offshore engineering, procurement,
construction, installation and commissioning project at the Yetagun complex,
Myanmar, a statement said.
"The order enlarges L&T's footprint in the
competitive hydrocarbon upstream market in South East Asia," L&T said
in a statement Wednesday.
The 19-month project involves supplying an offshore
wellhead platform and installing a subsea pipeline at a depth of 108 meters.
The project also includes host tie-in works on the
existing platform in the Yetagun complex.
L&T's plant in Kattupali on the east coast of India
will undertake the fabrication work of the project.
The Yetagun North Field is operated by Petronas Carigali
Myanmar with Petronas Carigali Myanmar Inc, Myanmar Oil and Gas Enterprise,
PTTEP International Ltd and JX Nippon Oil Exploration (Myanmar) Ltd as its
partners.
*************************************************************
Eleven Myanmar - Myanmar: second most cervical cancer in
Southeast Asia
Published on Friday, 01
February 2013 20:47
Myanmar has among the top second prevalence rates for
cervical cancer in Southeast Asia, followed by Cambodia, according to a study
released at the 41th seminar of Myanmar Health and Research in Yangon earlier
last month.
A part of “ACTION (ASEAN CosTs In ONcology) Project”, the
study was made on 889 cancer patients of both genders from public general
hospitals of Yangon and Mandalay regions. Among them, there were 104 cervical
cancer patients and 45 breast cancer patients.
The often fatal diseases, breast and cervical cancers,
affect married women more than single and most patients are between 40 and 60
years old, the study found.
The breast cancer sits the most top of the cancer plague
in Myanmar; increasing its epidemic figures from 25.09 percent in year 2000 to
29.4 percent in 2007. Likewise, the widespread of cervical cancer in Myanmar
has risen to 26.4 percent in 2008, from 23.5 percent in the past thirty years,
the study found.
“Since causing factors of such diseases are various,
there is no specific solution to eliminate them. Changing lifestyles,
escalating rate of using tobacco and alcohol in women and less taking physical
activities are the main causes of the diseases. The breast cancer is by far the
most yearly escalating cancer among women worldwide”, said Dr. Shu Mon, a
oncology specialist.
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WSLS - Probe: Pilot error may have caused Myanmar crash
Published: February 01, 2013
YANGON, Myanmar (AP) An investigation into the Christmas
Day crash of a passenger plane in Myanmar that killed two people suggests pilot
error may have been to blame, a top Myanmar aviation official said Friday.
Civil Aviation Department Deputy Director General Win Swe
Tun told a news conference that the pilots failed to decide quickly enough
whether to use visual or instrument guides for landing in foggy conditions.
He said no evidence was found suggesting engine failure,
security-related issues or malfunctioning of flight controls, based on a report
prepared with the aid of aviation experts from the Australian Transport Safety
Board, which examined the "black box" with flight data recovered from
the crashed aircraft.
The Air Bagan Fokker 100 jet was carrying 71 people,
including 48 foreigners, from Yangon city via Mandalay to Heho airport, the
gateway to Inle Lake, a popular tourist destination. It struck power lines just
30 feet (10 meters) off the ground as it was making its descent and crashed
into a rice paddy.
One passenger and a man on the ground were killed and 10
passengers were seriously injured. Both wings of the plane separated when it
hit the ground, and the fuselage was destroyed by fire.
The report said the first officer rather than the much
more experienced pilot was at the controls for the flight.
"Everyone wants to know if it was human error or a
mechanical problem," said Win Swe Tun. "Everything has to do with
humans. The pilot is the supervisor of all things on a plane, so everything depends
on man and the decision he makes within seconds."
Win Swe Tun said the final report, which is expected to
be issued before Dec. 25 this year, will reveal whether appropriate regulations
were followed.
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Shanghai Daily - Myanmar, Paris Club creditor countries
begin new era of relationship
Source: XINHUA |
2013-2-1
by Feng Yingqiu
YANGON, Feb. 1 (Xinhua) -- Myanmar and the creditor
countries of Paris Club have opened a new era of relationship following the
reaching of an agreement between them on comprehensive treatment of Myanmar's
public external debt last week.
Under the Jan. 25 agreement, Myanmar obtained nearly 6
billion U.S. dollars' debt relief or 60 percent of the total debt from the
Paris Club creditor countries, announcing that the government will use the
resources made available by the debt relief in schools, hospitals and poverty
reduction programs and pledging to step up a vigorous reform process under the
Framework of Economic and Social Reform.
The creditors delivered an exceptional treatment
providing a cancellation of 50 percent of the total of arrears due to the Paris
Club creditors in nominal terms in two phases with the remaining amount to be
rescheduled over 15 years including a 7- year grace period.
Following the agreement, Norway relieved 534 million U.S.
dollars debt, while Japan 3 billion U.S. dollars which Myanmar owed to them.
Other bilateral donors are expected to follow suit and
more debt cancellation is coming on the way in the next six months.
Since 1970, Myanmar had taken out 502.457 billion yens
(over 5 billion U.S. dollars) as development loan from Japan, of which that
part of the arrears of 303.576 billion yens (over 3 billion U. S. dollars) was
recently announced by Japan that it will be written off within one year period
in support of democratization and national reconciliation efforts as well as
economic and social reform process of the Myanmar government.
With a bridge loan from three Japanese banks, Myanmar
claimed on Jan. 30 settlement of the remaining debt of 198.881 billion yens
(nearly 2 billion U.S. dollars), signifying the clearing of Myanmar's debt owed
to Japan.
Following the debt settlement, the Japanese government
announced it would take steps to offer very-low-interest rate development loan
and assistance to Myanmar which will use in people-centered development
undertakings including education, health, social and administrative fields in
coordination with the Japanese government.
Meanwhile, Myanmar has also settled 512 million U.S.
dollars debt owed to the Asian Development Bank (ADB) and 430 million dollars
owed to the World Bank by taking out the amounts from the Japan Bank for
International Cooperation (JBIC) on Jan. 25 and paid back to the two creditors.
Obtaining new loans of the same amount from the two
creditors on the same day, Myanmar finally settled the debt by paying off the
bridge loan to JBIC.
According to Myanmar's Ministry of Finance and Revenue,
the World Bank will support Myanmar with 80 million U.S. dollars in carrying
out national community-driven development project for infrastructural
development in agricultural sector, roads, health centers and schools of 640
villages across the country.
Both ADB and World Bank will resume social and economic
assistance to help Myanmar build strong foundation for poverty alleviation
scheme and positive reform process.
The Myanmar government's economic reform program is
supported by the International Monetary Fund (IMF) with a Staff Monitored
Program (SMP) currently providing a framework for cooperation with the Myanmar
government.
According to an official figures revealed in the
parliament in October 2012, Myanmar's foreign debt including capital plus
interest stood 15.089 billion U.S. dollars, while domestic debt showed 9.988
trillion Kyats (11.89 billion U.S. dollars).
The circulating currency stood 6.199 trillion Kyats (7.37
billion U.S. dollars) up to the end of September of the fiscal year 2012-13.
With 15 million people out of 60 million living in
poverty, Myanmar's regain of international development assistance will help the
country in its economic development along with its reform.
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VOA News - Copper Mine Controversy Tests Burma’s Leaders
Daniel Schearf, February 01, 2013
BANGKOK — Burma is overdue to release a report on a
controversial copper mine backed by the military and China but facing strong
opposition. Rights activists say the investigation into the mine is a test of
the new government and of democracy leader Aung San Suu Kyi, who was appointed
head of the commission looking into the copper deal.
Aung San Suu Kyi visits Buddhists monks wounded in police
crackdown on protests against a copper mine project, Nov. 2012.
The commission appointed by Burma's president to
examine the Letpadaung copper mine was due to release its findings by January
31.
But the date came and went without a report or immediate
explanation on how the investigation into the central Burma project was
proceeding.
Burma’s largest copper mine is run by a Chinese company
in cooperation with the Burmese military-owned Union of Myanmar Economic
Holdings Company Limited (UMEHL).
Their plan for a $1 billion expansion came up against
protests from local villagers who say they were unfairly compensated and are
worried about the environmental impact.
Late last year, a months-long demonstration was violently
dispersed by police.
Thein Than Oo, head of the Legal Committee at the Burma
Lawyer's Network, says they uncovered evidence the police fired canisters of
white phosphorus, a powerful incendiary, to break up the protest.
"They want to warn the whole entire people that
don't touch…M-E-H-L. This is a matter of
business. It is untouchable. And, second, is to intimidate people,"
he said.
Thein Than Oo says they want to know who ordered the
police action, as some suspect members of the military may be involved.
Despite the controversy over the crackdown, it is unclear
if Aung San Suu Kyi’s commission even has a mandate to investigate it.
David Mathieson, an Asia researcher with Human Rights
Watch, says this investigation is new territory for Burma's civilian-led
government.
"The protest and the crackdown on the protest, and
all the other issues around Letpadaung and the copper mine, they're serious
enough as it is. But, this is also a
very important test case in how the authorities handle peaceful protests and
land rights issues and how the authorities deal with it. So, I think it has great symbolic
importance," he said.
The copper mine deal between the Chinese company and
Burma's military was struck during military rule and is criticized for a lack
of transparency.
Aung San Suu Kyi has already weighed in on the dispute,
saying that although the rights of villagers need to be protected, Burma also
needs to honor its agreements with foreign companies.
Mathieson says the commission's report is also a test
case of Aung San Suu Kyi as a politician.
"As someone not just has to be involved in
investigating a very serious incident but in actually bringing along different
members of the political kaleidoscope with her.
So, I think we're really going to see how effective she is as a
political leader through this exercise," he said.
NLD spokesman Nyan Win says when the report is finally
released it should indicate how Aung San Suu Kyi handles the competing
pressures.
"We should wait and see [the] final report, what
pressure, and what she can do for the benefit of the Letpadaung area
people," said Nyan Win.
Meanwhile, Burmese media reports this week indicate
protests have continued near the mine. China’s ambassador to Burma also weighed
in on the issue this week in meetings with the minister of mines.
A statement by China's Embassy says the ambassador
expressed hope that Burma would earnestly protect China's business interests
and help resolve any outstanding problems.
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Bangkok Post - Surapong plans Myanmar visit
Published: 2 Feb 2013 at
00.00
Newspaper section: News
SONGKHLA : Deputy Prime Minister and Foreign Minister
Surapong Tovichakchaikul will visit Myanmar this month to discuss a solution to
the recent influx of Rohingya illegal migrants.
The move follows Deputy Foreign Minister Jullapong
Nonsrichai's unsuccessful visit to the country last month.
Mr Jullapong was told that the Myanmar government could
not be certain whether the Rohingya migrants being held in Thailand had
originated from Myanmar's Rakhine state or from Bangladesh, Mr Surapong said.
He said talks with Myanmar would have to be sped up as
the government has set a six-month timeframe to provide temporary shelter for
the more than 1,400 Rohingya migrants who have entered Thailand illegally.
Mr Surapong on Thursday led 15 ambassadors and diplomats
from the Organisation of Islamic Cooperation (OIC) countries to visit Rohingya
women and children at a temporary shelter in Songkhla province.
"We want OIC member countries to help these Rohingya
migrants and cooperate with the Thai government to talk with their country of
origin to resolve this problem speedily," Mr Surapong said. He is planning
to talk with the United Nations High Commissioner on Refugees (UNHCR) to help
verify the migrants' nationality.
Other organisations, including the International
Organization for Migration (IOM) and the International Committee of the Red
Cross (ICRC), are expected to be involved in solving the issue.
Mr Surapong also plans to invite Thailand-based European
Union ambassadors to visit Rohingya migrants as the EU has expressed concern
over human rights abuses.
Meanwhile, another 12 Rohingya migrants were found near a
forest in Songkhla's Hat Yai district yesterday.
The Rohingya emerged from the forest at Khok Khilek
village in tambon Chalung yesterday and were spotted by local residents who
later took them to a nearby mosque. Twenty-three other Rohingya rescued earlier
by local residents were already staying at the mosque.
A source said police would take all 35 Rohingya now
staying at the mosque to an immigration office in Sadao district.
In Trang, officials at a welfare home where 13 Rohingya
migrants are staying have complained that the migrants are refusing to follow
house rules and forcing staff to carry out chores like cooking and cleaning.
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Asahi Shimbun - Myanmar opens retailing sector to foreign
investors
February 01, 2013
By TAKESHI
FUJITANI/ Correspondent
MANILA--Japanese convenience store chains and supermarket
operators looking to set up shop in Myanmar now have a clearer path as the
Southeast Asian nation has ended its virtual ban on foreign entry into its
retail sector.
The move came on Jan. 31, as the Myanmar government
released bylaws to its Foreign Investment Law that define specific conditions
for the entry of foreign capital.
The bylaws authorized wholly foreign-owned ventures and
joint foreign-domestic ventures. The ratios of foreign capital should be
between 30 percent and 80 percent in the latter case.
Previously, foreign investors in the retailing industry
were only allowed to operate local franchise outlets. Now, large retailers,
such as supermarkets and shopping malls, will be allowed to operate only on the
condition that they do not lie close to existing outlets of domestic capital.
Japanese supermarket operator Aeon Co. has shown a
willingness to operate in Myanmar's Thilawa Special Economic Zone, where Japan
is taking the lead in development efforts.
The bylaws grant foreign investors the right to use not
only state-owned land, but also privately owned plots, and extend the terms of
lease from the current maximum of 30 years to 50 years, which is renewable.
The bylaws explicitly state that foreign entry will be
restricted in coastal fisheries and in enterprises prone to environmental
pollution. That provision could be applied to ironworks and other large-scale
investment projects.
Although the new bylaws contain provisions that are favorable
to foreign investors, some provisions are not clearly defined and leave much to
the discretion of the government, raising concerns about a lack of
transparency.
The minimal capital requirements, which were not included
in the Foreign Investment Law when it was enacted in November, were defined at
$500,000 (45.8 million yen) for the manufacturing industry, $300,000 for the
services and other industries, and $10 million for mineral resources
development.
The bylaws defined no restrictions on foreign capital
ratios in specific fields, such as the food, hotel and transport industries.
Such matters will likely be left to the discretion of the government's
investment commission.
Since the international community eased sanctions on
Myanmar and wrote off much of its past debts, the country has pushed forward
with economic reform and is seeking a path to economic development through
full-scale introduction of foreign investment.
Foreign investors have been eager to see what provisions
would be included in the bylaws to the Foreign Investment Law because the law
itself was only vaguely defined and included few concrete provisions.
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