Myanmar Business Today - Vol 2, Issue 18

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Myanmar Business Today is Myanmar’s first and the only bilingual (English-Myanmar) business newspaper, distributed in both Myanmar and Thailand. MBT covers a range of news encompassing local business stories, special reports and in-depth analysis focusing on Myanmar’s nascent economy, investment and finance, business opportunities, foreign trade, property and real estate, automobile, among others. MBT also provides detailed coverage of regional (ASEAN) and international business stories. For more information please visit www.mmbiztoday.com.
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Myanmar Business Today - Vol 2, Issue 18

  1. 1. May 8-14, 2014 Myanmar Business Today mmbiztoday.com mmbiztoday.com May 8-14, 2014| Vol 2, Issue 18MYANMAR’S FIRST BILINGUAL BUSINESS JOURNAL Myanmar Summary Myanmar Summary Contd. P 12... Contd. P 12... Inside MBT Yangon’s Traders Hotel Becomes Sule Shangri-La P-23 Seven in 10 Asian Firms Eyeing Myanmar Entry in The Next 12 Months: Survey S eventy percent of Asian business lead- ers said they plan to expand into Myan- mar within the next 12 the Southeast Asian coun- try remains a key invest- ment hotspot for compa- nies looking for regional growth opportunities, a survey revealed. The survey, conducted among key decision mak- ers of Asian companies with an annual turnover of S$50 million or more, found that the two most compelling reasons be- hind their focus on My- anmar were the opportu- nity to provide goods and services to the country’s growing middle class (46 cant business opportuni- ties present as a result of the country’s rapid trans- formation (41 percent), the survey results show. Singapore-based United Overseas Bank Ltd (UOB) conducted the survey with more than 100 of its cor- porate banking and com- Phyu Thit Lwin mercial banking customers when they attended an in- vestment seminar in Yan- gon in late February. Ivan Chu, business op- erations manager, Soon Hong Seng Pvt Ltd, a hardware tools and safety equipment supplier, said: “Myanmar’s fast-growing economy and its need for infrastructural develop- ment mean that there is a ready market for our hardware tools and safety products. “This, combined with competitive labour costs and young and vibrant workforce, makes Myan- mar an attractive expan- sion destination for our manufacturing business.” However, as with any emerging economy going through a rapid transfor- mation, Myanmar faces the challenges of chang- ing local laws and invest- ment regulations. Sam Cheong, execu- tive director and head of group FDI Advisory Unit, UOB Group, said, “The business opportunities in Myanmar are real and so are the risks and chal- lenges. UOB United Overseas Bank rMumao;rDu aumuf,lcJYaom ppfwrf;t&tm&SpD;yGm;a&;OD;aqmif olrsm;70&mcdkifEIef;onf wpfESpf twGif; jrefrmEkdifiHwGif aps;uGuf csJUxGifoGm;&ef jyifqifvsuf&Sd aMumif; od&onf/ jrefrmEkdifiHonf a'owGif; zGHUNzdK; wkd;wufrItcGifhtvrf;rsm;&SmazG aeonfhukrÜPDrsm;twGuf t"du &if;ESD;jr§KyfESHrItcsuftcsmwpfck tjzpf qufvuf&yfwnfvsuf&Sd onf/þppfwrf;udk wpfESpfvQif aiGaMu;vnfywfrI a':vmoef; Thilawa SEZ Construction Work on Track Project set to go into partial operation in mid-2015 Htun Htun Min M yanmar will see Thilawa Special Economic Zone (SEZ) go into partial operation in involved with the project said. “The earthwork for the Class A Project has been completed and construc- tion of water and power facilities are underway,” U Win Aung, chairman of Myanmar Thilawa SEZ Holdings Public Ltd (MTSH), which holds 41 percent share in the pro- ject, said. The Thilawa project is expected to help create about 40,000 jobs for lo- cal residents, he added. The Class A project cov- ers 396 hectares out of the 2,342-hectare Thila- wa SEZ, located 25 kilo- metres from Yangon. MTSH has received many letters of intents from companies around the world, especially from Japan, Hong Kong and Europe, to invest in the project, he added. Thilawa SEZ Holdings to Return over K18-b Oversubscribed Shares P-5 The Bonds That Will Tie The Na- tion (Part I) P-7 oDv0gtxl;pD;yGm;a&;Zkeftm; 2015 ckESpfESpfv,fydkif;wGifvkyfief; rsm; pwifvnfywfvkyfaqmif oGm;rnfjzpfaMumif; tqdkygpDrH udef;wm0ef&SdolwpfOD;rS ajym Mum;cJhonf/ tqdkygoDv0gpDrHudef;taejzifh a'ocHrsm;twGuf tvkyftudkif aygif; av;aomif;cefY zefwD;ay; Edkifvdrfhrnf[k cefYrSef;&onf/
  2. 2. May 8-14, 2014 Myanmar Business Today mmbiztoday.com 2LOCAL BIZ MYANMAR’S FIRST BILINGUAL BUSINESS JOURNAL Board of Editors Editor-in-Chief - Sherpa Hossainy Email - sherpa.hossainy@gmail.com Ph - 09 42 110 8150 Editor-in-Charge - Wai Linn Kyaw Email - linnkhant18@gmail.com Ph - 09 40 157 9090 Reporters &Writers Sherpa Hossainy, Kyaw Min, Wai Linn Kyaw, Phyu Thit Lwin, Aye Myat, Pann Nu, Htun Htun Min, May Soe San Art & Design Zarni Min Naing (Circle) Email - zarni.circle@gmail.com Ph - 09 7310 5793 Ko Naing Email - nzlinn.13@gmail.com Ph - 09 730 38114 DTP May Su Hlaing Translators Wai Linn Kyaw, Phyu Maung, Bone Pyae Sone Advertising Seint Seint Aye, Moe Hsann Pann, Htet Wai Yan, Zin Wai Oo Advertising Hotline - 09 420 237 625, 09 4211 567 05, 09 31 450 345 Email - sales.mbtweekly@gmail.com Managing Director Prasert Lekavanichkajorn pkajorn@hotmail.com 09421149720 Publisher U Myo Oo (04622) No. 1A-3, Myintha 11th Street, South Okkalapa Township, Yangon. Tel: 951-850 0763, Fax: 951-8603288 ext: 007 Shwe Naing Ngan Printing (04193) Printing Subscription & Circulation Aung Khin Sint - aksint2008@gmail.com 09 20 435 59 Nilar Myint - manilarmyint76@gmail.com 09 4210 855 11 Khaing Zaw Hnin - snowkz34@gmail.com 09 4211 30133 Business News in Brief Military-owned enterprises to lose privileges in mining sector Myanma Economic Holding Ltd (MEHL) and Myan- ma Economic Corp (MEC), owned by the Ministry of Defence, will not have any special privileges in the min- ing sector including the lucrative jade and ruby indus- try, local media reported, citing director general Win Htein of the Ministry of Mining. “They won’t have any privileges any more. They will have to take part in the competitive bidding against others when their current mining licenses expire soon,” he was quoted as saying. Local airline to launch Myeik-Bangkok Flight ing Myanmar’s southeastern archipelago of Myeik with Thai capital Bangkok this month, according to a local media report. Union Express Charter Airline, a joint venture between Myanmar Union Express Aviation using a 168-seater Boeing737 to link Bangkok and the coastal city in Tanintharyi division, which was recently opened up for tourism. Flights will run every Tuesday and Friday, costing $140 for a return ticket, the report to Bangkok via Yangon. Japan to give ¥4b to streamline taxation sec- tor Japan has pledged to spend almost ¥4 billion to streamline Myanmar’s tax sector, according to the Cus- toms Department under the Ministry of Finance. The Japanese government will provide ¥3.9 billion for the Single Window Project which aims to modernise the taxation system by using auto-clearing for commodi- ties. An agreement regarding this between the two gov- ernments was signed last month. Thilawa SEZ Holdings to pick independent di- rector The government has asked the Thilawa SEZ Holdings Co Ltd to appoint independent directors who won’t hold any shares in the company. The Myanmar govern- ment owns ten percent of the company while 41 percent nies investing over K39 million ($40,206) in the shares. The remaining 49 percent is owned by Japan. “We will hold a shareholder meeting and appoint the directors,” U Set Aung, chairman for Thilawa SEZ Administration Committee, said. Myanmar relaxes journo visa rules for ASEAN Summit eign journalists seeking to cover the upcoming ASEAN Summit in the country later this month, the informa- tion ministry said. Under the new scheme, the one- month multiple entry visa rule for foreign reporters has ists were advised to re-apply for a new visa after three months at the Myanmar embassies which issued their will be allowed to extend their visa in every six months, according to the new plan. Yatanarpon Teleport seeks foreign partners State-owned telecommunications services provider Yatanarpon Teleport is in discussion with four foreign companies to establish a public-private partnership, lo- cal media reported. True Move from Thailand and Ax- iata from Malaysia are reported to be favourites. The joint venture will be 51 percent owned by Yatanarpon tanarpon Teleport currently provides mobile services and internet provision. MOGE calls rigs upgrade tender State-owned Myanma Oil and Gas Enterprise (MOGE) under the Ministry of Energy is now planning to up- grade its own drilling rigs with a range of capacity for shallow, medium and deep wells, and aims to cooperate with local and foreign partners to participate in future drilling activities. MOGE said all interested local and foreign companies are “warmly invited to come and dis- at Complex 44 in Nay Pyi Taw. Myanmar Summary umuG,fa&;0efBuD;Xmeydkif jrefrmhpD;yGm;a&;OD;ydkifvDrdwufESifh jrefrmh pD;yGm;a&;aumfydka&;&Sif;wdkYtaejzifhowåKwl;azmfa&;u@wGif rnfonfh txl;cHpm;cGifhrS&&Sdawmhrnfr[kwfaMumif; tqdkyg0efBuD;XmeOD;aqmif ñTefMum;a&;rSL; OD;0if;xdefrS ajymMum;cJhonf/ Myanmar Union Express Aviation Group and Myeik Public Corp ESifh Union Express Charter Airline wdkYtaejzifh NrdwfNrdKUrS xdkif;EdkifiH befaumufodkY ,ckvrSpwifum wpfywfvQifESpfBudrfysHoef; ajy;qGJrnfjzpfaMumif; od&onf/ *syefEdkifiHtaejzifh jrefrmEdkifiH tcGefu@wdk;wufa&;twGuf ,Grf 4 bDvD,Htm; axmufyHhay;rnfjzpfaMumif; od&onf/tqdkyg axmufyHhrItwGuf ESpfEdkifiHoabmwlpmcsKyftm; ,cifvu a&;xdk; cJhjcif;jzpfonf/ tpdk;&taejzifh Thilawa SEZ Holdings Co Ltd wGiff rnfonfh &S,f,mrQ yg0ifxm;jcif;r&Sdaom trSDtcdkuif;onfh 'g½dkufwmrsm; cefYxm;&efawmif;qdkcJhaMumif; od&onf/ jrefrmEdkifiHtaejzifh ASEAN Summit odkYwufa&mufowif;,l &rnfh EdkifiHwumowif;axmufrsm;twGuf ADZmvkyfief;pOfrsm;tm; ,ckvrSpwifumaqmif&Gufay;oGm;rnfjzpfaMumif; jyefMum;a&;0efBuD; XmerSxkwfjyefxm;onf/&wemykHqufoG,fa&;ukrÜPDtaejzifh EdkifiHjcm; ukrÜPDav;ckjzifh yl;aygif;aqmif&GufEdkif&ef aqG;aEG;rIrsm;vkyfudkifvsuf &SdaMumif;od&onf/
  3. 3. May 8-14, 2014 Myanmar Business Today mmbiztoday.com 3LOCAL BIZ Myanmar Summary 6,000 Tonnes of Rice to Be Shipped to Japan This Month Rice export falls in 2013-2014 FY Phyu Thit Lwin M yanmar will export 6,000 tonnes of rice to Japan this month, ac- cording to Myanmar Rice Fed- eration (MRF). This is the second time My- anmar is going to export rice to Japan after Japan agreed to im- port rice from Myanmar for the In 2013, Myanmar won the tender to export 5,000 tonnes of rice to Japan. This year, Myanmar Agribusi- ness Public Corp (MAPCO) and Japan’s Mitsui Corp collabo- rated to bid for a tender and won an export order of 6,000 tonnes. The companies will export Sinthwe Latt and Hmawbi II type (5 percent broken) rice to Japan. “Besides the 6,000 tonnes of rice export, we also signed MoU with some African countries to export 40,000 tonnes of rice,” Dr Soe Tun, chairman of MRF said. “For the rice exporters, there between the local and foreign markets. So there is not much rent export order, they will get about $450 to $500 per tonne, which is a much better price,” said Dr. Soe Tun from Myan- mar Rice Federation. Half of Myanmar’s rice ex- ports go to China via border year, over 800,000 tonnes of rice were exported to China. According to the Myanmar Rice Federation’s data, Myan- mar’s rice export fell in 2013-14 Myanmar exported about 1.5 million tonnes of rice in 2012- 13 but could only manage to ex- ,ckvydkif;xJwGif *syefEdkifiHodkY qefwef csdef 6000 wifydkYay;oGm;rnfjzpfaMumif; jrefrmEdkifiHqefpyg;vkyfief;toif;csKyf rS od&onf/ jrefrmEdkifiHonf *syefEdkifiHodkY ESpfaygif; 40 ausmfMum wef;jrifhqefwifydkYEdkifjcif; r&SdcJhbJ NyD;cJhonfh 2013 ckESpfrSom wef;jrifhqef 5000 wifydkY&ef wif'g atmifjrifcJhNyD; pwifwifydkYEdkifcJhNyD;jzpfum ,cktcsdefonf 'kwd,tBudrfajrmufwif'g atmifjrifcJhjcif;jzpfNyD; wef;jrifhig;rSwf qefwefcsdef 6000 wifydkY&jcif;jzpfonf [k od&onf/ ,ckwpfBudrfwif'gudk MAPCO ESifh *syefEdkifiHrS rpfql&DukrÜPDwdkYyl;aygif;wif oGif;jcif;jzpfNyD;{nfhrxtkyfpk0ifqeftrsKd; tpm;jzpfonfh qif;oG,fvwfESifh arSmfbD 2trsKd;tpm;wef;jrifhig;rSwfqefrsm;udk wifydkY&rnfjzpfonf/ ]]tckvuf&SdrSm *syefudk wef;jrifhqef 6000 tjyif tmz&duudk wefcsdef 40000 wifydkYzdkY MOU xdk;xm;w,f/ jynfyudk Export ydkYwJholawGtwGuf jynfwGif;qefaps;ESifh jynfyqefaps;u odyfruGmawmht&rf;tusKd;r&Sdbl;/'gayrJh tck&wJhaps;EIef;u wpfwefudk tar&d uefa':vm 450 eJY 500 tMum;rSm&Sd wJhtwGufaumif;wJhtaetxm;rSm&Sdyg w,f}}[kjrefrmEdkifiHqefpyg;vkyfief;toif; csKyfrS a'gufwmpdk;xGef;u ajymonf/ jrefrmEdkifiHrS jynfyqefwifydkYrIwpf0uf ausmfudk w½kwfEdkifiHodkY e,fpyfukefoG,f a&;vrf;aMumif;rSwpfqifh wifydkYae&NyD; NyD;cJhonfh 2012-13 b@mESpftwGif; rSmyif qefwefcsdef 8 odef;ausmf wifydkY cJh&jcif;jzpfonf/ DarioPignatelli/Bloomberg
  4. 4. May 8-14, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 4 Malaysia’s Yinson Eyes Myanmar O&G Opportunities Aye Myat M alaysia-based Yinson Holdings Bhd (YHB), support services for the up- stream oil and gas sector, said it is looking into the prospect of venturing into the oil and gas sector in Myanmar. The company is eyeing Myan- mar because of its rich oil and gas reserves, Yinson chairman and managing director Lim Han Weng said, adding that the Nigeria and Angola in West Af- rica, and Vietnam and Malaysia in Southeast Asia for its next ventures, Malaysian media re- ported. Experts suggest that in ad- dition to Myanmar’s current 20 trillion cubic feet (tcf) of reserves, which is worth $106 billion, there could be another 80tcf of undiscovered natural gas worth about $424 billion. Most of Myanmar’s reserves are still in place as the country has only exported its gas for the past 15 years. Since the 1970s ex- plorers have only drilled a total making the country an almost completely unexplored zone. “Myanmar has a good oppor- tunity in the sector, which is developing well in the past few years. However, we need to un- derstand the legal structure of our next move,” Lim was quot- ed as saying. In the last 12 months, Myan- mar gave concessions for pro- duction and exploration of its gas blocks to global energy gi- ants like Royal Dutch Shell, ConocoPhilips, BP, Chevron and Woodside, among others. Myanmar Summary rav;&Sm;EdkifiHtajcpdkuf urf;vGefa&eH ESifh obm0"mwfaiGUvkyfief;rsm;vkyfudkif vsuf&Sdonfh Yinson Holdings Bhd (YHB) taejzifh jrefrmEdkifiHa&eHESifh obm0"mwfaiGUvkyfief;rsm;0ifa&mufvkyf udkifEdkif&ef apmifhMunfhvsuf&SdaMumif; od& onf/ tqdkygukrÜPDtaejzifh jrefrmEdkifiH a&eHESifh"mwfaiGUo,HZmw<u,f0rItay: tm½kHusaeaMumif; ukrÜPDOuú|ESifh OD;aqmifñTefMum;a&;rSL;jzpfol Lim Han Weng u ajymMum;cJhNyD; ukrÜPD taejzifh *gbGef? Edkif*sD;&D;,m;? tif*dkvm? AD,uferfESifhrav;&Sm;wdkYwGif yl;aygif;rI rsm; xyfrHvkyfaqmifvdkaMumif; ajymMum; cJhonf/ Gov’t to Carry Out Maintenance Work on Two Major Rivers Phyu Thit Lwin M yanmar government will carry out main- tenance work on two major rivers – Ayeyarwaddy and Chindwin – in the coun- try, in a bid to improve the riv- ers’ navigation, the Ministry of Transport said. The government will spend K12 billion ($12.5 million) on removing sandbank and main- tenance of riverbeds and wa- terways of the two rivers with preventive measures against erosion of the rivers, according to the ministry. Of the total budget, K127 million will be allocated to the maintenance of Twante canal, which is vital for transportation by waterways to and from Yan- gon and the Ayeyarwaddy delta region in the southwest. According to the ministry’s Directorate of Water Resources and Improvement of River Sys- tem, the Ayeyarwaddy river is eroding at many places along the river and the directorate is currently repairing places where erosion is most serious. The directorate said it has completed the assessment on the possibility for building four low-head dams on the Ayeyar- waddy river in central Myan- mar recently. The water level of the Ayeyar- waddy river last year reached above its danger level of 1,260cm in the rainy season but fell to 720cm in summer in Mandalay. Flowing from north to south, the Ayeyawaddy river has been the key water transport route of Myanmar since ancient times. It also poses a great barrier to the social and economic rela- tions between the eastern and western parts of the country. a total of 11 Ayeyawaddy river- crossing bridges had been con- structed over the past two dec- A bridge on Ayearwaddy river that connects Magwe and Mandalay divisions. SherpaHossainy ades and three more bridges are under construction. There are also bridges across Chindwin, Thanlwin and Sit- toung rivers. Myanmar Summary jrefrmtpdk;&taejzifh {&m0wDESifh csif;wGif;jrpfrsm;wGif jrpfvrf;aMumif;rsm; tm; tqifhjr§ifhwifum jyifqifrIrsm; aqmif&GufoGm;rnfjzpfaMumif; ydkYaqmif a&;0efBuD;Xme ajymMum;csuft& od& onf/ tpdk;&taejzifh usyf 12 bDvD,H(tar &duefa':vm 12 'or 5 oef;) tm; oJaomifrsm; z,f&Sm;jcif;? jrpfMurf;jyif tm; jyifqifjcif;ESifh jrpfESpfck a&vrf; aMumif;rsm;tm;jrpfwdrfaumjcif;rSumuG,f Edkif&ef wdkif;wmrIrsm;jyKvkyf&mwGif okH;pGJ oGm;rnfjzpfaMumif; od&onf/ bwf*suftm;vkH;teufrS usyfaiG 127 oef;tm; &efukefESifh {&m0wDjrpf0uRef; ay: taemufawmifbufodkY qufoG,f xm;onfh wGHaw;wl;ajrmif;tm; jyKjyif &mwGif tokH;jyKoGm;rnfjzpfonf/ Yinson
  5. 5. May 8-14, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 5 Myanmar Summary Thilawa SEZ Holdings to Return over K18-b Oversubscribed Shares Htun Htun Min M yanmar Thilawa SEZ Holdings (MTSH) Public Ltd announced that the company will return over K18 billion ($18.7 million) worth of oversubscribed shares to the public. Shares of Thilawa Spe- cial Economic Zone (SEZ) went on sale in March in absence of a stock ex- change – in a bid to raise K21.45 billion ($22.3 mil- lion) through selling 2.145 million shares (K10,000 phase of construction of the SEZ 25 kilometres south of the country’s commercial hub Yangon. However, the proposed subscription has reached over K40 billion ($41.6 the company said. A total of over 17,000 proposals to buy more than 4 million shares were received and among them, about 90 percent wanted to subscribe 500 shares or less and the rest proposed to subscribe over 500 shares. Currently, MTSH is ne- gotiating with the banks to return the oversub- scribed shares to the pub- lic and MTSH will pay for the banks’ service cost, said U Tun Tun, treasurer of MTSH. The shares were avail- able at Kanbawza Bank, Ayeyawady Bank, Myan- mar Apex Bank, Coopera- tive Bank and Yoma Bank. While selling shares MTSH gave priority to the buyers who were sub- scribing to 500 shares (valued K5 million) or less. The company in- tends to allocate 56 per- cent of the shares to buy- ers who belong to this category and 44 percent to those subscribing over 500 shares, chairman of MTSH U Win Aung said. “The government gave us instructions to make shareholders with less subscription to become majority in the public company,” said U Set Aung, chairman of the SEZ management depart- ment and also the vice chairman of the Central Bank of Myanmar. The subscribers of over 500 shares may not be able to buy shares accord- ing to their proposals and can only subscribe to the number of shares set by MTSH, U Win Aung said. “We sold shares to the public to make us a prop- er public company. These shares are only a part of the overall project. We will sell more shares de- pending on our require- ment. “Not only Myanmar and Japan but also other international companies the project,” he said. However, MTSH didn’t explain its investment procedures prior to the share sales and share buy- ers said they would like to know details of the com- pany’s plans if they are buying its shares. An applicant from Yan- gon’s Sanchaung town- ship who submitted share subscription proposal told Myanmar Business Today that he wants to buy the shares of MTSH because Thilawa is My- Economic Zone, but he doesn’t know the detail of the company’s invest- plans. “The company should hold meeting with the shareholders to explain their plans in detail,” he said requesting anonym- ity. The Thilawa project is a joint venture undertak- en by the Myanmar and Japanese governments along with a consortium of Japanese companies, where the Myanmar side owns 51 percent and the Japanese side the rest. In the joint venture com- pany, Myanmar Japan Thilawa Development Ltd (MJTD), Myanmar gov- ernment’s Thilawa Spe- cial Economic Zone Man- agement Committee owns 10 percent and the rest is owned by MTSH, which is a consortium of nine My- anmar companies. The Myanmar com- panies are: FMI Co Ltd, Golden Land East Asia Development Ltd, Myan- mar Agribusiness Public Corp Ltd, Myanmar Ag- ricultural & General De- velopment Ltd, Myanmar Edible Oil Industrial Pub- lic Corp Ltd, Myanmar Sugar Development Plc, Myanmar Technologies and Investment Corp De- velopment Ltd, National Development Co Group Ltd and New City Devel- opment Plc. On the Japanese side, 39 percent is owned by MMS Development Co Ltd, led Sumitomo Corp, Mitsubi- shi Corp and Marubeni Corp, and 10 percent is owned by the Japan In- ternational Cooperation Agency (JICA). Thilawa SEZ, which is expected to be opera- tional by 2015, includes a large industrial zone, a deep sea port, factories and housing projects. Myanmar Thilawa SEZ Holdings Public Limited (MTSH) ukrÜPDrS &S,f,mrsm; a&mif;cs&ef usyf 21 'or 45 bDvD,HowfrSwfxm;aomfvnf; ,ck0,f,l&ef tqdkjyKonfhta& twGufonfusyf40bDvD,Hausmf onfhtwGuf OverSubscription jzpfaeonfh usyf 18 bDvD,Hausmf udk jyefvnfxkwfay;oGm;rnfjzpf aMumif; MTSH ukrÜPDrS&S,f,m a&mif;csjcif;qdkif&m owif;xkwf a&mif;csjcif;udk 2014 ckESpf rwfvrS pwifítrsm;jynfolodkYa&mif;cscJh &m{NyDv9&uftxda&mif;cscJhonfh pm&if;rsm;t&,ckuJhodkY 18bDvD,H ausmf Over Subscription jzpf aejcif;jzpfonf/ MTSH u&S,f,mrsm;a&mif;cs &mwGif &S,f,mpk 500 yrmP tm;jzifh usyfodef; 50 txd0,f,l olrsm;udk OD;pm;ay;a&mif;cscJh aMumif;od&onf/ UAung/Xinhua
  6. 6. May 8-14, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 6 Myanmar Summary Myanmar Summary Myanmar, Japan to Cooperate on Tourism Development in Bagan Aye Myat T he Ministry of Hotels and Tourism and Japan In- ternational Cooperation Agency (JICA) will conduct a feasibility study for a project to establish a pilot model for tour- ism development in Bagan, an ancient city in Mandalay region. The study includes a tech- nical cooperation project for improvement of tourist infra- structure, human resources de- velopment and heritage and en- vironmental conservation, the ministry said. Bagan, Myanmar’s top her- itage destination, is home to thousands of ancient pagodas and is shortlisted to join UN- ESCO’s World Heritage list. On April 10, the ministry and JICA signed a record of discus- sion for the project that aims to further develop the tourist industry in Myanmar through technical cooperation between the two countries. Recently, the Ministry of Ho- tels and Tourism drew the My- anmar Tourism Master Plan (2013-2020) with the assistance of international organisations. conserve Bagan and control tourist developments. Zoning laws have been approved that exclude all hotel development near or on the pagoda sites. However, there are genuine concerns that commercial de- velopment will cause irrepa- rable damage to the historical park and the JICA team is com- missioned with the task of iden- tifying measures that will pre- vent damage or overcrowding. Since the current quasi-ci- in 2011, tourist arrival in My- anmar reached 1.06 million in 2012 and 2.04 million in 2013, UAung/Xinhua Gov’t to Launch MyanTrade to Boost Exports Pann Nu M yanmar is planning to establish an export promotion organisa- tion in a bid to boost the coun- try’s exports, the Ministry of Commerce said. The new agency, MyanTrade, will prioritise enhancing trade and also study other regional countries to adopt successful policies. A national export strategy aimed at improving both quan- tity and quality of the exported goods is being drafted, the min- istry said. A law governing val- ue-added export goods as well as an anti-dumping law and a safeguard law are also being drawn up. Myanmar mostly exports natural gas, agricultural pro- duce, gems, marine and forest products, and imports consum- ers products, raw materials and heavy machineries. that ended in March at $2.65 billion because of surge in im- ports following the opening up of the country, the commerce ministry statistics showed. The total trade volume rose from $18 billion to $25 billion to the data. Myanmar’s total exports in 2013-14 amounted to $11.1 bil- lion while the total imports stood at $13.75 billion. Exports in 2012-13 were $8.97 billion while imports were $9.06 bil- lion.[dkw,fESifhc&D;oGm;vma&;0efBuD;Xme ESifh*syeftjynfjynfqdkif&myl;aygif;aqmif &GufrIat*sifpD(JICA)wdkYtaejzifhrEÅav; wdkif;twGif;&Sd a&S;a[mif;tarGtESpfNrdKU awmf yk*HwGif urÇmvSnfhc&D;oGm;vkyfief; zGHYNzdK;wdk;wufa&;twGuf avhvmrIrsm; yg0ifonfh pDrHudef;wpfcktm; yl;aygif; vkyfaqmifrnfjzpfaMumif; od&onf/ tqdkygavhvmrIwGifurÇmvSnfhc&D;oGm; vkyfief;tajccHtaqmufttHkrsm;wdk;wuf a&;?vlUpGrf;tm;t&if;tjrpfzGHUNzdK;wdk;wuf rI? tm&StwGuf enf;ynmqdkif&m yl;aygif; aqmif&Gufa&;pDrHudef;rsm;vnf;yg0ifrnf jzpfonf/ yk*Honf jrefrmEdkifiH xdyfwef;tarG tESpfae&mwpfckjzpfNyD; a&S;a[mif;bk&m; axmifaygif;rsm;pGm&SdonfhtwGuf UNESCO urÇmhtarGtESpfpm&if;odkY xnfhoGif; &ef vsmxm;jcif;cHae&onf/ ,ckESpf {NyDv 10 &ufaeYu [dkw,f ESifh c&D;oGm;vma&;0efBuD;XmeESifh JICA wdkYonf jrefrmEdkifiH c&D;oGm;vkyfief; wdk;wufrIpDrHudef;twGuf ESpfEdkifiHtMum; enf;ynmyl;aygif;aqmif&GufrIrsm;vkyf aqmif&ef aqG;aEG;vufrSwfa&;xdk;cJh aMumif; od&onf/ Ital-Thai Eyes Projects Worth $2b in Dawei Kyaw Min T he Italian-Thai De- velopment (ITD) Co aims to bid for projects worth $2 billion Dawei Special Economic Zone project in Myanmar this year. The company trans- ferred responsibility for the project to the Thai and Myanmar governments earlier this year citing dif- President and chief ex- Kannasutra Premchai Kannasut told a share- holders meeting that the company would enter a joint venture with Rojana Industrial Estate to bid for development of an in- dustrial estate in Dawei, Thai media reported. Italian-Thai is also in- terested in bidding on the second and the third phases of the project next year, the reports said. The company will now focus on three businesses: construction, infrastruc- ture projects and mining, it said. Myanmar Summary Reuters Italian-Thai Development (ITD) taejzifh jrefrmEdkifiH xm;0,ftxl;pD;yGm;a&;ZkefwGif yxrtokwftaejzifh tar&d uefa':vm 2 bDvD,Hwef pDrHudef; rsm;tm; ,ckESpftwGif; 0ifa&muf avvHqGJrnfjzpfaMumif;od&onf/ ukrÜPDOuú|ESifh trIaqmift &m&SdcsKyfjzpfol Pleamchai Kan- nasutra Premchai Kannasut uukrÜPDtaejzifh Rojana In- dustrial Estate ESifhyl;aygif;um xm;0,fpufrIZkefzGHUNzdK;wdk;wuf a&;twGufavvH0ifqGJrnfjzpf aMumif;ajymMum;cJhonf/ DarioPignatelli/Bloomberg jrefrmEdkifiHtaejzifh EdkifiHydkYukefwifydkY rItm;jr§ifhwif&eftwGuf wifydkYrIjr§ifhwif a&;qdkif&mtzGJUtpnf;wpf&yfwnfaxmif rnfjzpfaMumif; pD;yGm;a&;ESifh ul;oef; a&mif;0,fa&;0efBuD;rS ajymMum;vdkuf onf/ MyanTrade [ktrnf&onfh tqdkyg tzGJUopftaejzifh tjcm;a'owGif;EdkifiH rsm; atmifjrifonfh rl0g'rsm;tm; avhvm&efESifh ul;oef;a&mif;0,fa&; jr§ifhwif&ef OD;pm;ay;taejzifh vkyfaqmif rnfjzpfonf/ trsKd;om;ydkUukefwifydkYrIr[mAsL[mtm; wifydkYrnfhukefypönf;rsm;t&nftaoG; ESifht&nftwGufyg jr§ifhwif&eftwGuf a&;qGJvsuf&SdaMumif; 0efBuD;XmerS ajym Mum;xm;onf/
  7. 7. May 8-14, 2014 Myanmar Business Today mmbiztoday.com 7LOCAL BIZ Myanmar Summary Contd. P 8... Contd. P 8... The Bonds That Will Tie The Nation (Part I)The first part of this article discusses the urgent need for capital to sustain the development process in Myanmar and the financing mechanisms the gov- ernment can adopt to achieve that. The second part, which will be published next week, will discuss infrastructure investment and financing. Kyaw Myo Htoon TYangon, drink- ing water shortage across Myanmar, high unemployment rate in the country and sustain- ing peace with ethnic groups – viable solutions for all these challenges and problems come down to one critical component that will dramatically re- shape the future of this nation: “capital.” The development and growth of both public and private sectors demand large sums of capital in emerging economies like cient capital it will merely be a distant dream to be- come a thriving modern nation. It is obvious that rais- ing revenue for the de- velopment of the country is the utmost priority for current as well as future governments of Myan- “ It is no longer true that a government must absorb loss in order to serve its own people, a perception widely rooted among Myanmar public.” mar no matter who wins in 2015 election. On the other hand, spending and investing those revenues are even more critical because it will also play an important role in sus- taining peace with ethnic groups after peace agree- ment deal is attained at nationwide levels. With- out proper economic development plan, or a budget, in those ethnic provinces it will be very challenging for the gov- ernment to keep the peace going. loss business entity the government and the pub- lic need to understand and monitor where the money comes from and where the money goes, especially in times of sis, which happened in Greece, Ireland and Por- tugal. It is no longer true that a government must absorb loss in order to serve its own people, a perception widely rooted among Myanmar public. Therefore, it is a matter of national emergency to come up with a plan that will deploy the country’s sources. The main source of rev- enue or capital for most governments like My- anmar is tax. Myanmar government’s tax revenue is about 4 percent of the GDP – ridiculously low compared to other peer emerging countries like Vietnam (25 percent), Cambodia (15 percent) and Bangladesh (10 per- cent). Vietnam launched a se- ries of tax reforms from 1996 to 2010 to reach a 23 percent tax revenue to GDP ratio. The tax rev- enue collection grew at a rate of 19.6 percent annu- ally during the reform pe- riod. Now Myanmar gov- ernment has launched its own tax reform but even if it grows 20 percent annu- to achieve double the cur- to GDP ratio. At this pre- sent moment or years to come, tax revenue will not be a reliable source of the Myanmar government’s revenue. To persuade and educate individuals and business organisations to pay tax is a time consum- ing and complicated pro- cess. The international best- selling author Michael Lewis points out in his bestselling book “Boo- merang” that the main crisis of Greece was the government having failed to punish tax evaders. Myanmar’s narrow tax base and overreliance on resource-based revenues is laying the foundation reforms are not urgently undertaken, the govern- ment may not be able to provide basic services and may risk becoming seri- ously indebted. The gov- dwell on the problem of narrow tax base and focus on solutions available for economic development other than tax. International Organiza- tion for Migration (IOM) estimated that 10 percent of Myanmar’s popula- tion, then estimated to be 50 million to 55 mil- lion people, was living abroad. Although some 5 million Myanmar are working abroad for their livelihood, only $566 million (or 1.1 percent of GDP) worth of remit- tances went through the Central Bank of Myanmar last year. In neighbouring Bangladesh, monetary authorities managed to get their hands on nearly $14 billion (or 12 percent of GDP) in remittances, channelled through their formal banking system. According to a recent re- port sponsored by the In- ternational Fund for Ag- ricultural Development (IFAD) and the World Bank, a migrant worker in Asia sends home nearly an average $4,000 annu- ally. Even when average amount is cut into half, 5 million Myanmar over- seas workers will send home $10 billion annu- ally, which is equal to 20 percent of GDP and more than the value of Myan- mar’s annual gas exports to Thailand, the Econo- mist reported. Over the recent years, the positive impact of overseas remit- tances on emerging econ- omies has been a subject of considerable debate. Again, these remittances are often referred to as the ‘third pillar’ of devel- opment alongside foreign direct investment and &efukef,mOfaMumydwfqdkYrI jyóem? jrefrmEdkifiH aomufokH; a&jywfvyfrIjyóem? EdkifiH jrifhwufvsuf&SdonfhtvkyfvufrJh jzpfrIEIef;ESifhwdkif;&if;om;rsm;ESifh jidrf;csrf;a&;xdef;odrf;rIjyóem rsm;twGuf oifhavsmfonfhtajz ESifh EdkifiHtem*wftm;ajymif;vJ Edkifrnfhta&;ygonfhtcsufwpfck rSm aiGt&if;tESD;jzpfonf/ jrefrmEdkifiHwdk;wufvmonfh pD;yGm;a&;twGuf tpdk;&? vlxkESifh yk*¾vduu@rsm; zGHUNzdK;wdk;wuf a&;twGufaiGt&if;tESD;rsm;pGm tm; awmif;qdkvsuf&Sdonf/ vkHavmufonfh aiGt&if;tESD;r&Sd ygu acwfrDEdkifiHjzpfa&;qdkonfh &nfrSef;csufonf tdyfrufyrm tvSrf;uGma0;aernfomjzpfonf/ vmrnfh 2015 a&G;aumufyGJ wGif rnfolEdkifonfjzpfap tem*wf tpdk;&taejzifhEdkifiHzGHUNzdK;wdk;wuf a&;twGufvuf&SdwGifta&;tBuD; qkH;vkyfaqmif&rnfrSm aiGt&if; tESD;jr§ifhwifa&;jzpfonfrSm txif t&Sm;yifjzpfonf/tjcm;wpfzuf wGifrl tqdkygaiGt&if;tESD;rsm; tm; okH;pGJ&if;ESD;jr§KyfESHjcif;onf ydkrdk ta&;ygvsuf&Sdonf/tb,faMumifh typftcwf&yfpJ a&;pmcsKyfcsKyfqdk NyD;aemufwGif wdkif;&if;om;tkyfpk rsm;jzifhNidrf;csrf;a&;xdef;odrf; &mwGifta&;ygaomae&mrS yg0if aejcif;aMumifhjzpfonf/tqdkyg wdkif;&if;om;e,fajrrsm;wGif
  8. 8. May 8-14, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 8 “ Myanmar’s narrow tax base and over-reliance on resource-based revenues is laying the foundation for a future fiscal crisis.” overseas development assistance, and the value has outweighed that of sistance. Remittances have now become the second largest inbound resource for the developing countries after foreign direct investment development assistance (ODA) and private debt and equity. In 2008, re- mittances received in 20 countries were at least as large as 11 percent of their GDP. Tajikistan received remittances as much as 50 percent of GDP, which is quite a portion. It is also found that 10 percent increase in per capita of- tances will lead to a 3.5 percent decline in the share of people living in poverty. While governments can- not tell migrants and their families how to spend their own money, policy- makers can put in place mechanisms for migrants and their families to in- vest remittances in capi- tal-accumulation projects involving both human and physical development whole country. Another way to tap into Myanmar migrants’ pop- ulation is selling diaspora bonds to Myanmar living and working aboard. The idea of diaspora bond is nothing new. Israel was diaspora bonds, issuing 1951 and boasts having sold $33 billion worth of bonds worldwide since the program’s incep- tion. The Indian govern- ment raised over $11 bil- lion from diaspora bonds it issued in 1991, 1998 and 2000. These bonds were issued to support balance of pay- ing during times when ing international capital markets. Since 2001, the government of Sri Lan- ka has raised well over $580 million through the Sri Lanka Development Bond. This scheme en- courages citizens in the diaspora to invest in their home countries by pro- viding the much-needed revenue at lower than market interest rates, a patriotic discount. Unlike remittances, which often go towards domestic consumption, tions an avenue to couple revenue towards infra- structure and other devel- opment projects. Money generated from diaspora bond sales can be used for as health care or educa- tion or building roads and bridges. However, the government will need to lay down a tangible plan to establish an independ- ent authority or a depart- ment to manage the fund that is generated from di- aspora bond to build trust with potential bond buy- ers. cial infrastructure in My- anmar such as banks, stockmarket and other critical for both private and public sector. Less known function of a stock exchange is that govern- ment can also raise bond (debt capital) through Myanmar stock exchange operations and projects. Bond is a debt instru- ment through which gov- ernment borrows money from public. But sover- eign bond is another kind of bond that is issued to international investors through international capital markets and the total amount of bonds sold can be $500 million to $1 billion. On the other hand diaspora bonds can rake in $100 million to $200 million. Encouraging news is that in 2013, a lot of emerging economies from Africa issued foreign currency bonds in inter- national stock markets: Ghana issued $1 billion, Rwanda $400 million, Tanzania $500 million and Zambia $750 million. Most of their bonds were oversubscribed, meaning there were more buyers in the market than the amount of bonds issued. Tapping capital from stock market for both government and private institutions has never been easy as it takes time to prepare or restructure requirements. Before one government can issue sovereign bonds, it needs to obtain credit rating from international credit rating agencies and it is a daunting process, but Myanmar government must prepare today so that they can start issuing bonds in the next two to three years time. “The rating process, as well as the rating itself, can operate as a power- ful force for good gov- ernance, sound market- oriented growth, and the enforcement of the rule of law. From a business perspective, sovereign credit ratings serve as a baseline for evaluating the economic environ- ment surrounding invest- ment possibilities and as a benchmark for inves- tors to distinguish among markets, which provides valuable information and a basis for evaluating risk,” said the US State Department stressing the importance of sovereign credit rating for countries of sub-Saharan Africa in 2006. “The beauty with bonds is that their very existence lends further credibil- ity to the country seeking funds, thereby encour- aging a broader range of high quality investment. More credibility equals more money, equals more credibility, equals more money and so on,” Damb- isa Moyo, author of “Dead Aid” encourages African countries to sell bonds for their countries’ develop- ment. Poor countries obtain credit ratings not only for sovereign borrowings but also for sub-sovereign entities’ access to inter- national debt and equity capital. This means that least developed minor- ity provinces and regions in Myanmar like Chin or Kachin states can is- sue their own municipal bonds or sub-sovereign bonds to international in- vestors to borrow money for their regional devel- opment projects. Credit rating from in- ternational credit rating agencies will also en- country. Vietnam issued international bonds in foreign currency in 2005 worth $750 million and Vietnam’s FDI to GDP rate also picked up from around 3 percent before 2005 to over 8 percent in 2007, and remained above 5 percent until 2013. But issuing interna- tional bonds and getting credit rating are not the only solutions to increase FDI. Investment in in- frastructure is still key to attracting FDI. Although Indonesia issued interna- tional bond, FDI to GDP rate remains at the rate of 1 percent to 2 percent. Even if Myanmar govern- ment can issue $1 billion worth of sovereign bonds in the next two years this would still be short of the annual infrastructure in- vestment requirement of $4 billion. Kyaw Myo Htoon (John) is a bestselling book “Understanding Eq- business book in Myan- wdusaocsmonfh pD;yGm;a&;zGHUNzdK; rIpDrHudef;r&Sdygu tpdk;&taejzifh Nidrf;csrf;a&;qdkif&m pdefac:rIrsm; jzifh BuHKawGUEdkifzG,f&Sdonf/ pD;yGm;a&;vkyfief;&Sd yk*¾vduvkyf ief;rsm; tjrwftpGef;&&Sdjcif;? qkH;½IH;jcif; tygt0if aiGaMu;rsm; t0iftxGuftm; txl;ojzifh *&d? tkdif,mvefESifh ay:wl*DEdkifiH wkdYuJodkY aiGaMu;tusyftwnf; ESifh &ifqdkif&onfhtcg tpdk;& omru? jynfolvlxktaejzifhyg avhvmapmifhMunfh&efvdktyf onf/ ,cktcsdefü jrefrmvlrsdK; trsm;pkwGiftjrpfwG,faeonfh tjrifjzpfonfh tpdk;&wpfckonf vkyfaqmifay;&rnf[lonfhtcsuf rSm rrSefawmhacs/
  9. 9. May 8-14, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 9 Myanmar Summary SDVEntersMyanmarMarket Kyaw Min F rench logistics com- pany SDV, wholly owned by French investment and industrial holding group Bolloré, said it has set up a new of- its investment and expan- sion strategy in Southeast Asia. operation on May 1. “As the country moves toward democratic and economic reforms, many of our customers are ex- ploring this region and some of them already took the plunge on invest- ing massively in Myan- mar,” said Julien Loiret, general manager, sales and development of SDV Myanmar. Anticipating a strong growth in demand for transport and logistics and to accompany its customers in Myanmar’s booming market, SDV will provide its services and solutions especially in the oil and gas, tel- ecom, healthcare, fashion and retail industries, the company said. “The opportunities abound, in raw materi- als such as oil and gas but also in catering the need, from healthcare to telecommunication, of a population of 62 million,” added Elizabeth Shwe, who will be joining SDV Myanmar as a director. SDV said its “experi- SDV Myanmar to face the challenges ahead” in the emerging market. SDV, which spans across 24 countries in ing supply chain man- among the world’s top 10 in transport and logistics with a network of 600 sites in 102 countries. It international transport, customs brokerage, ware- housing and distribution, and supply chain man- agement. The company runs a global network of 600 agencies and employs 35,700 professionals worldwide in 99 coun- tries. Its revenue in 2013 stood at €5.473 million. is located at Kyaik Wine Pagoda road, Mayangone township, Yangon. WMC jyifopfEdkifiH&if;ESD;jr§KyfESHa&;ESifh pufrIvkyfief;tkyfpk Bollore rS ydkifqdkifonfh logistic ukrÜPD wpfckjzpfonfh SDV onf ta&SU awmiftm&SwGif &if;ESD;jr§KyfESHrIrsm; csJUxGif&eftwGuf &efukefNrdKUwGif ½kH;cGJvma&mufzGifhvSpfrnfjzpfonf/ tqdkyg½kH;cef;tm; arvwpf&uf wGif vkyfief;rsm; pwifvnfywf rnfjzpfonf/zGHUNzdK;wdk;wufaeonfh jrefrmEdkifiHaps;uGuf&Sd BuD;xGm; vmonfh vrf;yef;qufoG,fa&; ESifh logistic u@odkY 0ifa&muf &eftwGuf SDV taejzifh a&eH ESifh obm0"mwfaiGU? qufoG,f a&;? usef;rma&;? zuf&SifESifh vufvDvkyfief;rsm;wGif 0ifa&muf vkyfudkifoGm;rnfjzpfaMumif;tqdkyg ukrÜPDrS aMunmxm;onf/ SDV taejzifh tm&Sypdzdwf a'o&Sd EdkifiHaygif; 24 EdkifiHwGif vkyfudkifvsuf&SdNyD; EdkifiHaygif; 102 EdkifiH&Sd vkyfuGufaygif; 600 wGif vrf;yef;qufoG,fa&;ESifh logisitic vkyfief;rsm;vkyfudkifae onfh urÇmhxdyfwef; 10 ck pm&if; taejzifh tjynfjynfqdkif&mvrf; yef;qufoG,fa&;? ukefavSmif½kHESifh jzefYcsda&;ESifh csdwfqufaxmufyHh a&;pDrHrIrsm; vkyfudkifaeonf/ ukrÜPDtaejzifh EdkifiHaygif; 99 EdkifiHrS ynm&Sifaygif; 35ç700 cefYxm;um at*sifpD 600 jzifh csdwfqufvkyfudkifaejcif;vnf;jzpf onf/2013ckESpfwGifukrÜPDtae jzifh tjrwfaiG ,l½dkaygif 5 'or 473 oef; &&SdcJhonf/ SDV jrefrmEdkifiH½Hk;cGJtm; usKduf0dkif; bk&m;vrf;? r&rf;ukef;NrdKUe,f? &efukefNrdKUwGifzGifhvSpfrnfjzpfonf/
  10. 10. May 8-14, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 10 Myanmar Summary Myanmar Summary Myanmar Summary Myanmar Summary Gas Sector Top Revenue Earner Phyu Thit Lwin M yanmar’s gas sector emerged as the top revenue earning ex- port sector in the recently con- data from the Ministry of Com- merce showed. Revenue from exporting gas according to the ministry. Myanmar’s export sector is farm products, marine prod- - ucts (including exportation of natural gas), animal products, forest products and mineral products. Export earnings from rice, beans and pulses, corn, rubber, castor oil, cashew nut, mango, water melon, onion, garlic, tur- meric and ginger amounted to over $2 billion in the same pe- riod. Oil and gas sector is also the biggest source of foreign direct investment into Myanmar, ac- counting for over 31 percent of the country’s total FDI with over $14 billion in injected capi- tal as of March. During 2013-14, Myanmar’s foreign trade totalled $24.87 billion, with exports taking up $11.1 billion and imports repre- senting $13.76 billion. Land Disputes to be Solved “According to Law”: Speaker Kyaw Min M yanmar’s Parliament and Lower House Speaker U Shwe Mann has called for solving land dis- pute in accordance with law, saying that the government and the parliament are now discuss- ing ways to resolve the issue. Addressing local people in Pathein in southwestern Ay- eyawaddy delta region, U Shwe Mann admitted that the govern- ment is facing protests against land grabbing cases in many areas, especially in Ayearwaddy region. He pointed out that there was much unoccupied land in the area in the past and investors were invited to make use of it when local people did not have enough capital to do so. which cultivated at least 5,000 acres (2,025 hectares), were al- lowed to export 50 percent of their produce. However, he added that some companies had to return the land to the government as they - ably, not only in the farming but U Shwe Mann has earlier protect the rights of farmers, saying that the law shall be fair and practical to ensure rule of law. to enable farmers, who make up 70 percent of the population, to have access to adequate agricul- tural loan at lower interest rate stressing the need for reform to Myanmar Railways Calls Fibre Optic Cable Maintenance Tender Wai Linn Kyaw S tate-run Myanma Rail- ways (MR) under the Ministry of Rail Transpor- tation has invited tenders for the maintenance of its optical Yangon and Mandalay, an an- nouncement said. “Myanma Railways now in- vites tenders from reputable local, foreign or joint venture companies to undertake works for maintenance and ensuring connectivity of the OFC be- tween Yangon and Mandalay,” a notice from the managing di- rector of MR said. - G-652 from Yangon to Manda- lay. Tender documents and back- ground information could be obtained from the department’s be made at +95 9 8300073 and +95 67 77070. The tender in original and duplicate copies should be sub- mitted to the Deputy General Manager, Supply Department, Myanma Railways, Corner of Theinbyu and Merchant street, Botahtaung township, Yangon by 2pm, Tuesday, May 27. The applicant must also sub- mit an electronic copy of the tender in a CD Rom. No sub- mission via email will be enter- tained, the announcement said. The government-run depart- ment in its announcement said: “In line with the National De- velopment Plan, the govern- ment of Myanmar has been identifying the economic poten- tials to contribute to the coun- try’s economic development. As our endeavours for national de- velopment, Myanma Railways (MR) is committed to establish potential rail concerned busi- nesses.” Timber Exports Hit Almost $1b in 2013-14 FY Pann Nu T he export of teak, hard- wood and other timbers reached $947 million in - ing to the Ministry of Com- merce statistics. The trade value of teak, hard- wood, plywood and other wood products exported overseas amounted $916 million while the value of timber exported overland stood at $31 million, according to government statis- tics. Teak logs were the largest ex- port with a value of $638 mil- lion while nearly 34,328 tonnes of teak lumber was exported with a net worth of $31.55 mil- lion. Over 590,000 tonnes of hard- wood logs, worth $222 million, and hardwood lumber weigh- ing over 9,000 tonnes as well as 18,000 tonnes of plywood was shipped abroad. From 2001 to 2013, illegal timber exports amounted to 16.5 million cubic metres with a net worth of $5.7 billion, ac- cording to a report from the Environmental Investigation Agency (EIA). A plot of land on the bank of Ayeyarwaddy river. 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  11. 11. May 8-14, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 11 Myanmar Summary Myanmar’sEducationSystemGearedforGrowth T he education system in Myanmar is attracting at- tention, as both the state and private sector look to in- vest in upgrading schools and universities. The re-opening of Yangon University to under- graduates last December is seen as a key development. Once considered a leading institu- tion in the region and home to 60,000 students, the university saw its undergraduate teaching suspended in the late 1990s. Under the military dictator- ship, the role of higher-level education diminished. Today in Yangon, universities have low budgets and are spread across a wide area making management - gish. As Myanmar looks to rebuild its university system, coopera- tion with international institu- tions may be one way to secure the necessary funds and other resources. In October, the Ja- pan International Cooperation Agency (JICA) announced it was funding a $13.5-million initiative to improve engineer- ing education in Myanmar, in association with seven Japa- nese universities. Among the goals of the programme will be to update syllabuses in several subjects (such as civil engineer- ing and electronic engineering), while Japanese professors will travel to Myanmar to conduct guest lectures and lessons. Interest in the Myanmar edu- cation market extends far be- yond Asia, to include both Eu- rope and the US. In February 2013, a group of 10 American universities, organised by the International Institute of Edu- cation, a New York-based non- to explore partnerships. According to Jacques Fre- mont, director of the interna- tional higher-education pro- gramme at the Open Society - isation, Myanmar will need to links with foreign institutions. “Will the Burmese say yes to everyone and then lose control of the reform agenda? Or will they be in a position to plan and say, ‘Here is what we need?’ The pressure is huge right now,” he told the New York Times last year. International schools opening branches Foreign investors are already moving into the primary and secondary school segments, looking to serve wealthy lo- cal families and the expatriate community. The British Inter- national School plans to open a $20,000-per-year institution in August, which will look to sat- isfy some of the demand fuelled by local wealthy families and expatriates. UK-based Harrow Interna- tional Management Services and Dulwich College Interna- tional are taking a more indi- rect route, partnering with Sin- gapore-listed Yoma Strategic Holdings, which is chaired by Serge Pun, a local businessman, to enter the market. The bulk of funding for the Harrow “early years centre” and the Dulwich College school, nei- ther of which will be branded with the UK names, will come from Yoma. jrefrmEdkifiH ynma&;pepfonf tpdk;& ESifh yk*¾vduu@wdkYwGif ausmif;rsm;? wuúodkvfrsm;tm; tqifhjr§ifhwif&ef &if;ESD;jr§KyfESHrIrsm;ponfh pdwf0ifpm;zG,f &mrsm;jzifh qGJaqmifvsuf&Sdonf/ ,cif ESpf 'DZifbmvwGif pwifzGifhvSpfcJhonfh &efukefwuúodkvfonf t"duzGHUNzdK;rIwpf ckjzpfonf/tqdkygwuúodkvfwGif ausmif; om; 6 aomif;tm; oifMum;ay;Edkif rnfjzpfonf/ ,cifppftkyfcsKyfa&;atmufwGifrl tqifhjrifhynma&;onf arS;rSdefcJhNyD; ,ck tcsdefwGif &efukefrS wuúodkvfrsm;onf b@ma&;tm;enf;rIESifh ae&ma0;uGmrI wdkYaMumifh pDrHcefYcGJrIESifh zGHUNzdK;wdk;wufrIrsm; wGif tcuftcJrsm;ESifh &ifqdkifae&onf/ ynma&;pepftm; jyKjyifajymif;vJ&mwGif tjynfjynfqdkif&m tzGJUtpnf;rsm;ESifh yl;aygif;aqmif&GufrIonf &efykHaiGESifh tjcm;t&if;tjrpfrsm;&&Sd&eftwGuf pdwfcs&onfh enf;vrf;wpfckjzpfonf/ NyD;cJhonfhatmufwdkbmvtwGif;u *syef EdkifiH tjynfjynfqdkif&myl;aygif;aqmif &GufrIat*sifpD (JICA) taejzifh jrefrm EdkifiHtif*sifeD,mynma&;pepftm; jr§ifhwif&eftwGufueOD;yHhydk;rItjzpftar &duefa':vm 13 'or 5 oef;tm; *syefwuúodkvfckepfcku yl;aygif;rwnf rnfjzpfaMumif; aMunmcJhonf/tqdkyg tpDtpOft& *syefygarmu©rsm;rS jrefrm EdkifiHwGif vSnfhvnfum oifwef;rsm; ydkYcs rnfjzpfNyD; NrdKUjytif*sifeD,mESifh vQyfppf tif*sifeD,mbmom&yfrsm;tygt0if tif*sifeD,mbmom&yfrsm;tm; jr§ifhwif ay;oGm;rnfjzpfonf/ Investment in public facili- ties The government appears committed to spending money to upgrade and expand its edu- cation system. Under the mili- tary junta, education received little funding, on average ac- counting for 1.3 percent of the national budget. In the latest education accounted for 11 per- cent of the government’s $7.13 billion spending. way to go in catching up with in- ternational and regional stand- ards. Much of the 70 percent rural population has limited or no access to internet, textbooks or laboratory equipment, and, in many cases, teachers lack the relevant experience to deal with overcrowded classrooms and a weak curriculum. “Overcrowding leads to a high rate of absenteeism,” Shirley Nang Hom Leik, Program Coor- dinator at Nexus Myanmar, an English training centre started in 2010, told OBG. She added that classroom practices do not foster creative thought and re- strict expression. “The current education system does not en- courage creativity by teachers,” she said. Moving forward Whilst decades of neglect have left the education sector in restore the standard of learning that was in place before military rule. Support is coming from far and wide to bolster an underde- - mented system. With greater at- tention directed to the practices and applications of foreign aid and loans on the alleviation of the country’s debt burden, My- anmar will be in a more capable position to develop its educa- tion sector and ensure that fu- ture generations are trained in of the economy. OBG “ As Myanmar looks to rebuild its university system, cooperation with international institutions may be one way to secure the necessary funds and other resources.” UAung/Xinhua A student practises writing at a local school in Yangon. UAung/Xinhua
  12. 12. May 8-14, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 12 Myanmar Summary “As Myanmar’s pace of economic and social transformation has accel- erated over the last two years, UOB too has looked to strengthen its support for businesses expanding into this market.” Last year, UOB established an FDI Advisory Unit in Myanmar to help existing and potential clients to in- vest in the country. Business leaders in the survey cited their top con- cerns when expanding into Myanmar as limited bank KingPowerSecures GoldenMyanmar DutyFreeDeals Phyu Thit Lwin H ong Kong-based King Power Traveler (KPT) has strengthened its portfolio after gaining four new contracts including with Gold- en Myanmar Airlines. The company also struck wholesale supply service deals with VietJet Air, Air Vanuatu and Solomon Air. The services will be launched in May and June. Golden Myanmar Airlines op- with plans to add a new aircraft will be adding A330 aircrafts a week to Singapore, Bangkok and Kuala Lumpur with rapid expansions to Tokyo and Hong Kong, with Mandalay Interna- tional Airport being its primary base. KPT President Rakhita Jaya- wardena said: “We have devel- oped a good quality long-term business with all our partners very interesting opportunities with quality-focused airlines.” Central Bank Hosts the First Financial Sector Technical Assistance Conference Pann Nu T he Central Bank of Myan- mar (CBM) recently host- the Financial Sector Technical Assistance Coordination Group for Myanmar in Nay Pyi Taw. Participants included mul- tilateral agencies – Asian De- velopment Bank, International Finance Corporation, Interna- tional Monetary Fund (IMF), Livelihoods and Food Security Trust Fund (LIFT), the Toronto Centre: Global Leadership in Financial Supervision, and the World Bank – as well as bilater- al development partners – Bank Negara Malaysia, Bank of Thai- land, Deutsche Gesellschaft fur Internationale Zusammenar- beit, Financial Services Agency of Japan, Japan International Cooperation Agency, and the United Kingdom Department for International Development. Participants expressed their commitment to coordinating their delivery of technical assis- Myanmar, and agreed to meet every six months. The meeting also agreed to establish a number of sub-sec- toral groups to carry forward their work plans and develop milestones for monitoring per- formance. Development part- ners agreed to share their plans, programs, and advice in order to avoid technical assistance duplication, and promote se- quenced, coordinated and com- - nancial sector in Myanmar. The conference follows an in- formal donor meeting held at the IMF in Washington, DC at the 2013 IMF-World Bank An- nual Meetings where the gov- ernor of the CBM discussed the need for increased communica- sector development partners in Myanmar. Aye Myat Aservice would soon be started between Bang- kok and Imphal via Mandalay after Manipur’s Tulihal Airport was upgraded to an interna- tional airport with the landing Myanmar in November last year. According to a highly placed starting the trilateral interna- - ward by the Thai Government in view of enhancing trade and tourism in the regions. The Myanmar government has given its nod to the pro- posal, Hueiyen News Service reported. However, the Indian Government is yet to give a con- DirkLaureyssens crete response in this regard. As per the proposal of the Thai would be operated by ATR-72 aircrafts manufactured by the French-Italian aircraft manu- facturer Avions de Transport Regional (ATR). The ATR aircraft has a capac- ity of about 80 people. Thai Airways and Golden Myanmar have expressed their service between Bangkok and Imphal via Mandalay. How- ever, none of the Indian airline companies including the na- tional carrier Air India has ex- pressed intention for operating Mandalay and Imphal is about an hour. 50 ESifhtxuf&Sdonfhtm&SukrÜPD rsm;rS qHk;jzwfcsufcsoltBuD;tuJ rsm;tMum; aumuf,lcJhjcif;jzpf jrefrmEkdifiHtay: pdwf0ifpm;rIudk t"duqGJaqmifonfh tcsufESpf csufrSm wdkif;jynfzGHUNzdK;wdk;wuf vsuf&Sdonfh vlvwfwef;pm; (46 &mcdkifEIef;) udk ukefpnfESifh 0efaqmifrIrsm;ay;EkdifrnfhtcGifh ta&;ESifhwkdif;jynfvsifjrefonfh tajymif;tvJrsm; (41 &mcdkifEIef;) aMumifh xif&Sm;onfh pD;yGm;a&; tcGifhtvrf;rsm;&Sdjcif;wdkYyifjzpf onf/ 2013 ckESpfwGif UOB onf jrefrmEkdifiHwGif vuf&Sd&Sdaeonfh vkyfief;tyfolrsm;ESifhtvm;tvm &Sdonfh vkyfief;tyfolrsm;udk ulnD &ef EkdifiHjcm;wkduf½dkuf&if;ESD;jr§KyfESHrI tBuHay;Xmeudk zGifhvSpfcJhonf/ ,if;Xmeonf jrefrmEkdifiHwGif vkyfief;csJUxGif&mwGif oHk;pGJolrsm; awGUBuHK&rnfh pdefac:rIrsm;ESifh ywfoufí tBuHay;ulnDvsuf &Sdonf/ Myanmar Summary jrefrmEdkifiHawmfA[dkbPfonfbPf vkyfief;qdkif&menf;ynmulnDyl;aygif; aqmif&Gufa&;tzGJUESifhaejynfawmfwGif yxrqkH;tBudrfawGUqkHcJhaMumif;od& onf/tqdkygawGUqkHyGJodkY tm&SzGHUNzdK;a&; bPf? tjynfjynfqdkif&maiGaMu;yl;aygif; aqmif&Gufa&;?tjynfjynfqdkif&maiG aMu;&efykHaiG(IMF), Livelihoods and Food Security Trust Fund(LIFT), the Toronto Centre: Global Leader- ship in Financial Supervision, the World Bantp&SdonfhurÇmhtzGJUt pnf;rsm;tjyifzGHUNzdK;a&;ESpfzuftusKd;wl vkyfudkifbufrsm;jzpfonfh Bank Negara Malaysia,Bank of Thailand, Deutsche Gesellschaft f u r Internationale Zusammenarbeit, Financial Services Agency of Japan, Japan International Cooperation A g e n c y E S i f h t h e U n i t e d Kingdom Department for Inter national Development wdkYvnf; wufa&mufcJhMuonf/ Myanmar Summary a[mifaumiftajcpdkuf av,mOfuGif; twGif; duty free ypönf;a&mif;csonfh King Power Traveler (KPT) ukrÜPD taejzifh a&TjrefrmavaMumif;vdkif;tyg t0if tjcm;avaMumif;vdkif;av;vdkif;jzifh yl;aygif;vkyfaqmifcGifh&&SdcJhaMumif; od& onf/ xdkYaMumifh ukrÜPDtaejzifh a&Tjrefrm avaMumif;vdkif;? VietJet Air, Air Vanuatu ESifh Solomon Air wdkYtm; vufum;0efaqmifrIrsm;ay;Edkifawmhrnf jzpfonf/ tqdkyg0efaqmifrIrsm;tm; arESifh ZGefvwdkYwGif pwifrnfjzpfonf/ a&TjrefrmavaMumif;vdkif;taejzifh A320 trsKd;tpm;av,mOfrsm;jzifh ajy; qGJvsuf&SdNyD; av,mOftopfwpfOD;tm; vmrnfhajcmufvtwGif; 0,f,lEdkif&ef pDpOfvsuf&Sdonf/ NyD;cJhonfhESpfEdk0ifbmvwGif a&Tjrefrm pif;vkH;iSm;av,mOf qif;oufcJhonfh rPdyl& Tulihal avqdyftm; tjynf jynfqdkif&mavqdyftjzpf tqifhjr§ifhwif NyD;aemufwGif befaumufESifh tifzmwdkY tm; rEÅav;rSwpfqifh tjynfjynfqdkif &m av,mOfc&D;pOftm; rMumrDajy;qGJ awmhrnfjzpfonf/ tqifhjrifht&m&SdwpfOD; ajymMum; csuft& tqdkygokH;EdkifiHjzwfausmf tjynf jynfqdkif&mav,mOfc&D;pOftm; xdkif; tpdk;&rS a'owGif;ul;oef;a&mif;0,fa&; ESifh c&D;oGm;vkyfief; csJUxGifEdkif&ef pDpOf aeNyDjzpfonf/jrefrmtpdk;&taejzifhvnf; tqdkygc&D;pOftm; oabmwlvufcHxm; aMumif; Hueiyen News Service rS a&;om;xm;onf/ - cent) and the lack of clar- ity around local laws and regulations (53 percent). - UAung/Xinhua
  13. 13. May 8-14, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 13 Myanmar Summary Myanmar Summary Myanmar Summary Indebted Steelmaking Giant POSCO Drafts Restructuring Plan to Bolster Finances Hyunjoo Jin S outh Korean steelmaking giant POSCO, hit by ris- ing debts and three years is drafting a restructuring plan standing. Chief Executive Kwon Oh- joon, who took the helm at the in March, said at the time that he will restructure the compa- ny’s non-steel businesses, after a wave of investments and ac- quisitions left POSCO with al- most $40 billion of debts. A prolonged industry down- turn worsened by China’s de- celerating economy has also deepened steel oversupply. POSCO, backed by billionaire its sales forecast for this year af- ter posting an 11 percent slide in last week. According to media reports earlier, POSCO was consider- ing selling a stake in its trading and resources arm Daewoo In- ternational Corp, which it had bought in 2010, for 3.37 trillion won ($3.26 billion). A POSCO spokesman declined to comment on the potential stake sale in Daewoo Interna- tional. “POSCO’s restructuring move shows that the steel market will remain tough for the time be- ing,” said Lee Won-jae, a steel analyst at SK Securities. “Dae- woo International is a giant Daewoo International, which 16 percent last year, compared with 2010. Indonesia’s2014RiceOutputSeenat73MillionTonnes Yayat Supriatna I ndonesia is forecast to pro- duce 73 million tonnes of unmilled rice in 2014, gov- ernment ministers said, slightly lower than a previous estimate at 76 million tonnes due to the scarcity of land for expansion. Indonesia’s state food pro- curement body Bulog has built up rice stocks of 1.7 million tonnes, Indonesia’s chief eco- nomic minister Hatta Rajasa told reporters, adding that the agency is likely to buy from do- mestic suppliers this year. Bulog usually maintains rice stocks at between 1.5 million to 2 million tonnes to guard Indonesia’s unmilled rice pro- duction was estimated at 71.29 million tonnes in 2013. Reuters Bloomberg DimasArdian/Bloomberg tif'dkeD;&Sm;EdkifiHonf 2014 ckESpfwGif qefwefcsdef 76 oef;xkwfvkyfEdkifrnf[k ,cifu arQmfrSef;xm;aomfvnf; pdkufysKd; ajrcsJUxGif&ef rvkHavmufrIaMumifh 73 oef;om xkwfvkyfEdkifrnf[k arQmfrSef; xm;aMumif; tif'dkeD;&Sm;tpdk;&0efBuD; XmerS ajymMum;xm;onf/ tif'dkeD;&Sm;tpdk;&pm;aomufukefBuD;Muyf a&;tzGJUtpnf;wpfckjzpfonfh Bulog rS qefwefcsdef 1 'or 7 oef;tm; pkpnf;xm;NyD;jzpfaMumif; tif'ddkeD;&Sm;EdkifiH pD;yGm;a&;0efBuD; Hatta Rajasa rS rD'D,mrsm;odkY ajymMum;xm;NyD; tqdkyg tzGJUtpnf;taejzifh jynfwGif;rS qefrsm; xyfrH0,f,loGm;rnfjzpfaMumif;udkvnf; ajymMum;cJhonf/ awmifudk&D;,m;EdkifiH oHrPdxkwfvkyf a&;ukrÜPDBuD;wpfckjzpfonfh POSCO taejzifh okH;ESpfqufwdkuf tjrwfusqif; rIESifhBuHKawGUae&NyD; a<u;NrDjrifhwufrIESifh vnf; &ifqdkifae&aomaMumifh b@m a&;jyefvnfjr§ifhwif&eftwGuf jyefvnf jyifqifa&;tpDtpOfrsm; a&;qGJvsuf&Sd aMumif; od&onf/ ukrÜPDtrIaqmift&m&SdcsKyf Kwon Oh-joon rS &if;ESD;jr§KyfESHrIESifh vkyfief; tcsKdUaMumifh POSCO wGif a<u;NrD tar&duefa':vm 40 bDvD,HeD;yg;&Sd aeonfhtwGuf ukrÜPDoHowåKr[kwf onfh vkyfief;rsm;tm; jyefvnfjyifqif rnfjzpfaMumif; aMunmcJhonf/ oHowåKvkyfief;rsm;onfvnf; w½kwf EdkifiH usqif;vmonfhpD;yGm;a&;aMumifh oHowåKtvQHty,fwifydkYrIjyóemrsm; ESifh BuHKawGUae&onf/tar&duef&if;ESD; jr§KyfESHrIonf bDvsHem Warren Buffett rS axmufyHhay;xm;onfh POSCO tae jzifh yxrokH;vywftwGif; vkyfief;vkyf aqmifrI tjrwf 11 &mcdkifEIef; usqif; cJhaMumif; ,ciftywfu xkwfjyefcJhNyD; cefYrSef;rItm; jzwfawmufvdkufonf/ rD'D,mrsm;tapmydkif;wifjycsufrsm; t& POSCO taejzifh 2010 wGif wpfckjzpfonfh Daewoo International Corp &S,f,mwpfpktm; 0rf 3 'or 37x&DvD,H(tar&duefa':vm 3 'or 26 bDvD,H) ESifh a&mif;cs&ef qkH;jzwf xm;aMumif; od&onf/ Daewoo International onf jrefrm EdkifiHwGif obm0"mwfaiGUwl;azmfa&; vkyfief;rsm; vkyfudkifvsuf&SdNyD; 2010 ckESpfESifh EIdif;,SOfygu ,cifESpftwGif; tjrwftpGef; 16 &mcdkifEIef; jrifhwufcJh aMumif; od&onf/ Thai CP All Sees Lower Sales This Year Due to Unrest Saranya Suksomkij T hailand’s largest conveni- ence store chain, CP All Pcl, said it expected sales to grow 10 percent this year, below the recent average of 12 percent, due to prolonged po- litical unrest. Sales for 2014 would be driven by 600 new stores planned for the year, Tasattavorakul, vice chairman, told reporters. Months of unrest have hurt CP All is controlled by Thai- land’s wealthiest man, Dha- nin Chearavanont, and oper- ates stores under the 7-Eleven brand. Reuters - DarioPignatelli/Bloomberg xdkif;EdkifiHtBuD;qkH;aps;0,fpwdk;vkyfief; CP All Pcl taejzifh tjrwfaiGrSm ykHrSef12&mcdkifEIef;wdk;wufcJhaomfvnf; EdkifiHa&;rNidrfroufrIrsm;aMumifh ,ckESpf twGif; 10 &mcdkifEIef;om wdk;wufcJh aMumif; od&onf/ ,ck 2014 ckESpftwGif; a&mif;tm; rsm;twGuf qdkifopfaygif; 600 xyfrH zGifhvSpf&ef arQmfrSef;xm;aMumif; 'kwd, Ouú| Tasattavorakul rS ajymMum;cJh onf/
  14. 14. May 8-14, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 14 Myanmar Summary Myanmar Summary Jane Chung and Meeyoung Cho Slook the best placed to meet extra demand in Asia created by a series of plant clo- sures in Australia, given they are building up capacity and produce the high-quality gaso- line and diesel Australia uses. Other major suppliers in the region of these cleaner-burning fuels include Singapore and Ja- pan, but industry sources say been the most aggressive tar- geting Australia after doubling exports in the past two years. The extra Australian demand when Asia’s fuel demand has weakened due to a slowdown in the economies of top fuel con- sumers China and India. Singapore is the top fuel sup- plier to Australia, meeting about half of its imports, while South Korea accounts for nearly - cent. “But as the Australian import requirement rises, that leaves - ers to come in,” said Alex Yap, energy consultant at FGE Sin- gapore, adding that Korean capacity. Australia has seen a series of cases facilities are being con- verted into fuel terminals. BP was the latest example af- ter it said on April 2 it would shut its 102,000 barrel-per-day (bpd) plant in Brisbane by 2015, blaming competition from new Royal Dutch Shell, Chevron Corp’s Caltex Australia and Exxon Mobil Corp have also the last few years. The closures mean by 2015 Australia will have only four - pacity of 448,500 bpd and is ex- pected to become the largest net importer of diesel and second- largest net importer of gasoline in Asia, importing more than half of its fuel needs. Energy, GS Caltex, S-Oil Corp and Hyundai Oilbank have been investing to boost output of fu- els such as gasoline and diesel. advantage on shipping costs to Australia compared to regions such as Europe. Singapore, South Korea and Japan jointly supplied 84 per- cent of Australia’s 517,969 bpd year, up from 78 percent a year earlier, Australian data showed. South Korea saw by far the biggest rise as its exports to Aus- tralia rose 60 percent to 94,816 bpd, moving ahead of Japan’s 63,173 bpd although still well below Singapore’s 274,770 bpd. Reuters Taiwan Economy Grows At Solid Pace, Signals Improving Global Demand Faith Hung and Jeanny Kao T aiwan’s export-depend- ent economy grew at its quickest pace in over a showed, suggesting rising mo- mentum in developed econo- mies and an improving outlook for the global tech sector. The preliminary growth rate of 3.04 percent in the three- months to March 31 also indi- cated that the island’s economy may be able to weather a slow- down in China, its biggest mar- ket, as exports to the United States and Europe showed a heartening pick up. Taiwan’s economy, home to the world’s biggest contract chipmaker and a crucial sup- ply chain for major electron- ics brands, is often viewed as a bellwether for global growth and tech demand. “What’s eye catching was the strong contribution of net ex- ports, which added 1.57 per- centage points to the overall growth rate,” said analyst of Raymond Yang with ANZ in Hong Kong. the strongest since the last quar- ter of 2012, according to the Directorate General of Budget, Accounting and statistics, driv- en by a low-base of comparison, solid private consumption and a steady pick up in exports. The signs for the rest of the year were positive, and backed the International Monetary Fund’s view that an increase in output in richer nations will spur the global recovery. March exports to the United States, Taiwan’s no.2 market, rose 10.3 percent on-year, with shipments to Europe up 10 per- cent – in both cases it was the strongest growth rate in a year. The increase up in shipments provide a shot in the arm to Tai- wan’s economy, which is facing some uncertainty as growth in China continues to slow down this year.. The recent eye-catching re- sults from Apple Inc, which sources many components from Taiwan and contracts out much of its production of iPhones and Precision Industry Co Ltd, also bodes well for the island’s ex- ports. “I still view the export picture as good overall. Despite the rel- ative weakness in some sectors products such as semiconduc- tors and chips, we’re still doing quite well,” said Rick Lo, senior economist of Fubon Financial Holdings. Reuters JeromeFavre/Bloomberg Reuters awmifudk&D;,m;a&eHoefYpifa&;vkyfief; rsm;onf MopaMw;vsEdkifiHwGif a&eHpuf½kH rsm;ydwfodrf;vdkufjcif;twGuf tm&S wdk;wufvmonfh 0,fvdktm;twGuf vkyfief;vkyfudkif&ef &SmazGvsuf&SdNyD; MopaMw;vsEdkifiH&Sd okH;pGJolrsm;twGuf t&nftaoG;jrifh "mwfqDESifh'DZ,frsm; xkwfvkyfoGm;rnfjzpfaMumif; od&onf/ MopaMw;vsodkY oefYpifNyD; a&eHwifoGif; onfh t"duEdkifiHrsm;wGif pifumylESifh *syefEdkifiHwdkYyg0ifaomfvnf; awmifudk &D;,m;EdkifiHtaejzifh vGefcJhonfh ESpfESpf twGif;wGif MopaMw;vsEdkifiHodkY wifydkYrI ESpfqjr§ifhwifcJhaMumif; tqdkygvkyfief; todkif;t0dkif;rS ajymMum;xm;onf/ vuf&SdpifumylEdkifiHonf MopaMw;vs EdkifiH t"dua&eHwifydkYonfhEdkifiHtjzpf &yfwnfaeNyD; MopaMw;vsEdkifiHodkY wif oGif;onfha&eHxuf0uf&Sdonf/awmif udk&D;,m;taejzifh tqifh 5 ae&mwGif &yfwnfaeNyD;? *syefEdkifiHtaejzifh 12 &mcdkifEIef;jzifh &yfwnfvsuf&Sdonf/ ukefypönf;wifydkYrItm; rSDcdkae&onfh xdkif0rfEdkifiHpD;yGm;a&;onf yxrokH;v ywftwGif; vGefcJhonfhwpfESpfxuf ydkrdk vsifjrefpGmwdk;wufcJhaMumif; pm&if;rsm; t& od&NyD; pD;yGm;a&;zGHUNzdK;rIt&Sdeftm; jr§ifhwifum urÇmhenf;ynmu@wGif wdk;wuf&eftwGuf tBuHjyKxm;onf/ ueOD;wdk;wufrIEIef;onf rwfv 31 &ufaeYtxd okH;vtwGif; 3 'or 04 &mcdkifEIef; wdk;wufcJhNyD; w½kwfEdkifiHwGif pD;yGm;a&;wdk;wufrIaES;auG;aeaomfvnf; tar&duefESifh Oa&myodkY wifydkYrIjzifh pD;yGm;a&;ydkrdkwdk;wufcJhjcif;jzpfonf/ ,ckwdk;wufrIonf 2012 ckESpf aemuf qkH;okH;vywftNyD; yxrqkH;tBudrf cdkifrm pGmwdk;wufvmjcif;jzpfaMumif; xdkif0rf Directorate General of Budget, Accounting and statistics pm&if; rsm;t& od&onf/tqdkygwdk;wufrIonf ,SOfNydKifrII? yk*¾vdupm;okH;rIESifh ydkYukef yrmPjrifhwufvmjcif;wdkYaMumifhjzpf aMumif;vnf; od&onf/
  15. 15. May 8-14, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 15 Myanmar Summary Myanmar Summary Unfazed by Weak Yields, Airasia X Bets on Scale to Win Yantoultra Ngui A irAsia X Bhd, the long- haul arm of Malaysian budget carrier AirAsia Bhd, is betting its dual strategy of scale and multi-country hubs will make it the region’s domi- nant airline and help it survive the short-term impact of declin- ing yields. “We are deliberate in our strategy of expanding aggres- sively, especially in 2014. This is the business where, basically to succeed, you’ve really got to be number one in your segment,” said AirAsia X Chief Executive Azran Osman Rani Azran. “If you’re number three or number four, it is going to be very hard ... that’s proven around the region, in America and Europe and how AirAsia continues to survive in South- east Asia by being more than double the size” of other low- cost carriers, Azran told Reu- ters in an interview. Steep price cuts by rival Ma- laysian Airlines on medium and long-haul routes last year hit passenger yields at AirAsia X, forcing it to discount fares to maintain load factors. “Naturally there is short-term pressure on yields because typi- cally every new capacity that we add in takes at least 12 months to break even,” Azran said. “And build long-haul bases on the back of AirAsia’s extensive - ates in the region, focusing on a corridor of demand from North Asia to Australia via Southeast Asia. It expanded capacity by 49 percent in the fourth quarter and plans a 40 percent increase for 2014, up from 19 percent overall in 2013, before scaling back later on, said Azran. In December, AirAsia X placed a $6 billion order for 25 Airbus A330-300 aircraft to challenge network carriers. It expects to and operates 21 planes now. The landscape is getting crowded though. Scoot, the medium and long-haul budget airline ownedby deep-pocketed Singapore Airlines, is taking de- - ing 787 Dreamliner jets this year as it expands services. AirAsia X also faces compe- tition from Qantas Airways’ budget subsidiary, Jetstar, and Air. “New entrants are com- ing into the space. We have to make sure we are really ahead of them in terms of size, scale and branding,” said Azran, who was handpicked by AirAsia’s co-founder, Tony Fernandes, to run the long-haul carrier. so our portfolio is roughly about two-thirds above matured and business is still new,” he said. Big ambitions Seven-year-old AirAsia X, to Saudi Arabia and 18 destina- including points in Japan, Chi- na and Australia, has been the most ambitious of long-haul budget carriers in expanding its It plans to open a Bangkok- in June, followed by an Indone- The airline’s strategy is to with 25 aircraft we will to be more than double the size of the next biggest competitor. We would have launched two hubs in Thailand and Indonesia and with a three-hub model that I think is far superior than all the other competition.” Reuters South Korea to Lend Out Part of $354 Billion Foreign Reserves Yantoultra Ngui S outh Korea unveiled last to lend up to $10 billion of its $350 billion-plus foreign currency reserves to eligible local companies to import pro- overseas projects. The plan will provide South Korean companies with for- eign currency funds at below commercial rates to invest in domestic production facilities, overseas buildings and plant, statement. domestic banks and 12 branch- es of foreign banks operating in the country would begin lend- ing foreign-currency funds to eligible companies from next month for a maturity of up to 10 years at favourable terms. The lenders would receive the foreign currency funds from the government at lower interest rates than they would otherwise have to pay when borrowing from the markets. one year. South Korea’s foreign-curren- cy reserves stood at a record $354.54 billion at the end of March. As of the end of Feb- ruary, South Korea had the world’s seventh-largest foreign reserves. Emerging-market economies including South Korea have boosted foreign-currency re- serves as a defence against cap- stress, but the growing costs of keeping the reserves have often been criticised as wasting tax- payers’ money. Bloomberg rav;&Sm;wefzdk;enf;avaMumif;vdkif; AirAsia Bhd c&D;a0;avaMumif; vdkif; AirAsia X Bhd taejzifh EdkifiHpkH avaMumif;vkdif;rsm; csdefudkufajy;qGJjcif; tm;jzifh a'owGif; tiftm;BuD;av aMumif;vdkif;tjzpf &yfwnfEdkifrnfjzpfNyD; umvwdk c&D;onfavQmhusrIrSvnf; ajzavQmhEdkifrnfjzpfaMumif; od&onf/ oufwrf;tm;jzifh ckepfESpf&SdNyDjzpfonfh AirAsia X taejzifh rav;&Sm;EdkifiH uGmvmvrfylrS aqmf'Dtma&Astygt0if *syef? w½kwfESifhMopaMw;vsponfh tm&S- ypdzdwfa'orS 18 ae&modkY c&D;&Snf ajy;qGJaeonfh wefzdk;enf;avaMumif; vdkif;wpfckjzpfonf/ tqdkygavaMumif;vdkif;taejzifh befaumuftajcpdkuf Thai AirAsia X udk ZGefvwGif zGifhvSpfEdkif&ef pDpOfvsuf &SdNyD; tif'dkeD;&Sm;EdkifiHwGifvnf; ,ckESpf aESmif;ydkif;ü pwifEdkif&ef vkyfaqmifvsuf &Sdonf/ AirAsia X taejzifh AirAsia c&D; wdkavaMumif;c&D;pOfrsm;tm;tajcjyKum a'owGif;EdkifiHrsm;odkYc&D;&Snfajy;qGJEdkif &efpDpOfxm;NyD;awmiftm&SrSMopaMw;vs odkYta&SUawmiftm&SrSjzwfum c&D;&Snf ajy;qGJay;Edkif&ef&nfrSef;xm;onf/ awmifudk&D;,m;EdkifiHtaejzifh EdkifiHjcm; pkaqmif;aiG tar&duefa':vm 350 bDvD,HausmfteufrS 10 bDvD,Htm; oifhawmfonfh jynfwGif;ukrÜPDrsm;tm; xkwfvkyfa&;ud&d,mrsm;wifydkY&efESifh EdkifiH jcm;aiGaMu;pDrHudef;rsm;twGuf xkwfacs; rnfhtpDtpOftm; vGefcJhonfh&ufowå ywfu xkwfjyefaMunmcJhonf/ tqdkygtpDtpOfonf EdkifiHwumaiG aMu;&efykHaiG&Sdonfhawmifudk&D;,m;ukrÜPD rsm;tm; jynfwGif;ukefypönf;xkwfvkyfrI rsm;wGif &if;ESD;jr§KyfESH&ef? EdkifiHjcm;wGif taqmufttHkESifh puf½kHrsm;aqmufvkyf &efjzpfaMumif; b@ma&;0efBuD;rS tqdkyg xkwfjyefcsufwGif azmfjyxm;onf/ tqdkygtpDtpOft& jynfwGif;bPf 16ck?EdkifiHwGif;vkyfudkifvsuf&SdonfhbPfcGJ 12 ckrS EdkifiHjcm;aiGaMu;&efykHaiGtm; oifh avsmfonfh ukrÜPDrsm;tm; vmrnfhvrS aemuf 10 ESpftxd xkwfacs;rnfjzpf onf/ aiGacs;olrsm;taejzifh EdkifiHjcm; aiGaMu;&efykHaiGtm; aps;uGufrS acs;,l p&mrvdkbJ tpdk;&xHrS twdk;EIef;enf;yg; pGmjzifh acs;,lEdkifrnfjzpfNyD; tqdkygxkwf acs;rItm; wpfESpfvkyfaqmifrnfjzpfonf/ ,ckESpfrwfvukeftxd awmifudk&D; ,m;EdkifiH EdkifiHjcm;aiGpkaqmif;xm;rI rSm tar&duefa':vm 354 'or 54 bDvD,H&Sdonf/
  16. 16. May 8-14, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 16 Australia’sHorizonOilAndRocOilAgreetoMerge Maggie Lu Yueyang A ustralian oil and gas producers Ho- rizon Oil Ltd and Roc Oil Company Ltd have agreed to merge to form a single, Asia-focused ener- gy company worth A$800 million ($740 million), the two companies said. The merged group – which will have assets in China, Papua New Guin- ea, Malaysia, Myanmar, Australia and New Zea- land – will be better po- sitioned for growth than either company on a stan- dalone basis, the compa- nies said in a statement. “This transaction repre- sents a unique and com- pelling opportunity to bring together two com- panies with highly com- plementary assets to cre- ate a new Asian-focused mid cap E&P (exploration and production) cham- pion,” said Roc chairman Mike Harding, who will be the chairman of the merged group. Under the agreement, Horizon shareholders will receive 0.724 Roc shares for each Horizon share they hold and will own about 58 percent of the merged group after the merger is complete. Roc shareholders will own the other 42 percent. Horizon generated 66 percent of its 2013 rev- enue from New Zealand developments and 34 per- cent from China, while Roc earns 76 percent of its revenue from China, 11 percent from Asia and 7 percent from the UK, ac- cording to Thomson Reu- ters data. Reuters Myanmar Summary MopaMw;vsa&eHESifhobm0"mwf aiGUxkwfvkyfonfh ukrÜPDESpfckjzpf onfh Horizon Oil Ltd ESifh Roc Oil Company Ltd wdkY onf MopaMw;vsa':vm oef; 800 (tar&duefa':vm 740) wefukrÜPDwpfcktjzpfodkY yl;aygif; vkyfudkif&ef oabmwlnDNyD;jzpf aMumif; tqdkygukrÜPDrsm;rS xkwf azmfajymMum;vdkufonf/tqdkyg yl;aygif;aqmif&GufrIudk tm&Swdkuf wGif t"duxm;í jyKvkyf&ef &nf &G,faMumif; od&onf/ tqdkygukrÜPDtaejzifh w½kwf? ygyl0ge,l;*DeD? rav;&Sm;? jrefrm? MopaMw;vsESifh e,l;ZDvefEdkifiH rsm;wGif vkyfudkifrnfjzpfaMumif; tqdkygukrÜPDrsm; xkwfjyefcsuf t& od&onf/ tqdkygoabmwlnDcsuft& Horizon &S,f,m&Sifrsm;taejzifh &S,f,mwpfpkvQif Roc &S,f,m okn'or 724 &&SdrnfjzpfNyD; yl;aygif;rINyD;ajrmufoGm;csdefwGif &S,f,m 58 &mcdkifEIef;tm;&&Sd rnfjzpfum Roc &S,f,m&Sifrsm; taejzifh &S,f,m 42 &mcdkif EIef;tm; &&Sdrnfjzpfonf/ World’s Costliest Cities: Sydney and Melbourne Ranked in Top 10 S ydney and Mel- bourne rank among the top six most ex- pensive cities in the world to live, according to the Economist’s latest World- wide Cost of Living Sur- vey. The bi-annual survey, carried out by the busi- ness magazine’s intelli- gence unit, ranked Sydney - sive city in the world, with Melbourne one spot be- hind in equal sixth. Singapore took the du- bious honour of top spot, followed by Paris, Oslo and Zurich. Perth and Brisbane shared 21st spot while Ad- elaide came in at 37th. The survey of 131 cities assessed costs by compar- ing more than 400 indi- vidual prices across 160 products and services. These included food, drink, clothing, house- hold supplies, rents, transport, utility bills and recreational costs. and rising prices can have a big impact on results. A 40 per cent rise in the Singapore dollar over the past decade, for instance, saw the city sweep to the top of the rankings. “As well as Singapore, there have been sustained increases in the cost of living for Australian cities driven by the long-term appreciation of the Aus- tralian dollar,” the survey notes. Despite a slow decline in the value of the Austral- ian dollar in the past year, Sydney and Melbourne continue to maintain their lofty positions in the global rankings due to on- going price hikes. By comparison, New York clocks in at the rela- tively modest position of 26th most expensive. At the other end of the scale, the least expensive cities include Kathman- du, Jeddah and Riyadh. Mumbai in India is the world’s least expensive city. Bucharest in Romania is Europe’s one member in the bottom 10, and Panama City the lowest- ranking member from the Americas. “Within Asia the best value for money is in the Indian subcontinent,” the report says. However, it comments drily that “outside India, bargain hunters may be - curity risk in many of the countries in which the world’s cheapest cities are found”. “Pakistan, Nepal, Syria and Algeria all feature in the bottom 10, but have had well documented se- curity issues or domestic unrest.” However, one exam- ple that points to a de- gree of uncertainty in the methodology of how the Economist draws its con- clusions is the case of Ca- racas. By current calculations the Venezuelan capital is joint sixth most expensive with Melbourne, Geneva and Tokyo. However, this is en- tirely based on using the beleaguered Venezuelan - change rate for its cur- rency, the bolivar. valuation of the bolivar, at 6.29 to the US dollar, is undermined by black- market rates valuing the currency at less than one- tenth of this amount,” the report says. “As a result, adopting any parallel rate for the bolivar would immedi- ately place Caracas as the world’s cheapest city rather than the current deceptive position it has as the joint sixth most ex- pensive.” Myanmar Summary Reuters qpf'eDESifh rJvfbkef;NrdKUawmfrsm; onf urÇmay:wGif aexdkifp&dwf tBuD;jrifhqkH;NrdKUBuD;rsm;jzpfaMumif; Economist urÇmhaexdkifrI p&dwf avhvmcsuft& od&onf/ ESpfESpfwpfcgjyKvkyfonfh tqdkyg avhvmrIonf Economist pD;yGm; a&;r*¾Zif;rSjyKvkyfjcif;jzpfNyD;Sydney NrdKUonf eHygwfig;ae&mESifhrJvfbkef; NrdKUonf eHygwfajcmufae&mwdkYjzifh toD;oD;&yfwnfvsuf&Sdonf/ pifumyltaejzifh ESpfESpfquf wdkuf yxrae&mwGif &yfwnfae NyD; yJ&pf? atmfpvdkESifh Zl;&pfNrdKU rsm;taejzifh 'kwd,? wwd,ESifh pwkw¬ae&mrsm;twGiftoD;oD;&yf wnfvsuf&Sdonf/ygwfhESifhb&pfbdef; NrdKUawmfrsm;taejzifh tqifh 21 wGif &yfwnfaeNyD; Adelaide rSm tqifh 37 wGif&Sdaeonf/ NrdKUBuD; 131 NrdKU vlaerI pm;&dwfrsm;tm;ukefypönf;aygif; 160 ESifh 0efaqmifrIwdkYrS aps;EIef; aygif; 400 wdkYtay:wGif wGuf csufxm;jcif;jzpfonf/
  17. 17. May 8-14, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 17 Myanmar Summary ChinaPoisedtoPassUSAsWorld’sLeadingEconomicPower Chris Giles T heUSisonthebrink of losing its status as the world’s larg- est economy, and is likely to slip behind China this year, sooner than widely anticipated, according to the world’s leading statis- tical agencies. The US has been the global leader since over- taking the UK in 1872. Most economists pre- viously thought China would pull ahead in 2019. by the International Com- parison Program hosted by the World Bank, are the most authoritative estimates of what money - tries and are used by most public and private sector organisations, such as the International Monetary they have been updated since 2005. After extensive research on the prices of goods and services, the ICP con- cluded that money goes further in poorer coun- tries than it previously thought, prompting it to increase the relative size of emerging market econ- omies. The estimates of the real cost of living, known as purchasing power parity or PPPs, are recognised as the best way to com- pare the size of econo- mies rather than using volatile exchange rates, true cost of goods and ser- vices: on this measure the IMF put US GDP in 2012 at $16.2tn, and China’s at $8.2tn. In2005,theICPthought China’s economy was less than half the size of the US, accounting for only 43 per cent of America’s total. Because of the new methodology – and the fact that China’s economy has grown much more quickly – the research placed China’s GDP at 87 per cent of the US in 2011. For 2011, the report says: “The US remained the world’s largest econ- omy, but it was closely followed by China when measured using PPPs”. With the IMF expect- ing China’s economy to have grown 24 per cent between 2011 and 2014 while the US is expected to expand only 7.6 per cent, China is likely to overtake the US this year. - tionise the picture of the world’s economic land- scape, boosting the im- portance of large middle- income countries. India becomes the third-largest economy having previ- ously been in tenth place. The size of its economy almost doubled from 19 percent of the US in 2005 to 37 per cent in 2011. Russia, Brazil, Indone- sia and Mexico make the top 12 in the global table. In contrast, high costs and lower growth push the UK and Japan further behind the US than in the 2005 tables while Germa- ny improved its relative position a little and Italy remained the same. - sify arguments about con- trol over global interna- tional organisations such as the World Bank and IMF, which are increas- ingly out of line with the balance of global econom- ic power. When looking at the actual consumption per head, the report found the new methodology as well as faster growth in poor countries have “greatly reduced” the gap between rich and poor, “suggesting that the world has become more equal”. The world’s rich coun- tries still account for 50 percent of global GDP while containing only 17 per cent of the world’s population. Having compared the actual cost of living in report also found that the four most expensive countries to live in are Switzerland, Norway, Bermuda and Australia, with the cheapest being Egypt, Pakistan, Myan- mar and Ethiopia. RussiaSeesNoImmediateImpactonHi-TechFirmsfromSanctions Lidia Kelly Rminister Anton Si- luanov said he sees no immediate impact on Russia’s high tech com- panies from US sanctions imposed last week. “I cannot see at the mo- ment that any companies journalists at the Federa- tion Council. US President Barack Obama said on Monday that Washington would target some high tech ex- ports to Russia as part of new sanctions over the crisis in Ukraine, where the West says Russia is fomenting separatist un- rest. Reuters Bloomberg Russia’s President Vladimir Putin said last week that Russia will be able to replace any de- fence industry imports lost due to the Ukraine crisis with its own prod- ucts. Reuters Myanmar Summary &S&Sm;b@ma&;0efBuD; Anton Siluanov u ,ciftywftwGif; tar&duefEdkifiHrS&S&Sm;EdkifiH enf;ynmukrÜPDBuD;rsm;odkYpD;yGm; a&;ydwfqdkYvdkufjcif;tay: xda&mufrI&Sdvdrfhrnf[krjrifrd aMumif;ajymMum;cJh onf/ zuf'a&;&Sif;aumifpDwGifowif; axmufrsm;ESifhawGUqkHpOfu]]uRef awmfawmh'DtcsdefrSmb,fukrÜPDrS epfemrIcHpm;&wmrawGUygbl;}}[k 4if;uajymMum;cJhonf/ tar&duefEkdifiHtaejzifh ,ck ESpftwGif; urÇmhpD;yGm;a&;tiftm; tBuD;qkH;EdkifiHae&mtm; w½kwf EdkifiHodkY vufvTJ&zG,f&SdaMumif; urÇmhpm&if;Z,m;jyKpka&;at;*sifh pm&if;rsm;t& od&onf/ tar&duefEdkifiHtaejzifh 1872 ckESpfwGif NAdwdefEdkifiHtm; ausmf jzwfNyD;csdefrSpwifumurÇmhtiftm; BuD;EdkifiHtjzpf &yfwnfaejcif;jzpf onf/pD;yGm;a&;ynm&Sifrsm;onf ,cifu w½kwfEdkifiHtm; 2019 ckESpfwGif urÇmhpD;yGm;a&;tiftm; BuD;EdkifiHjzpfvmrnf[k cefYrSef;xm; jcif;jzpfonf/ urÇmhbPfrS jyK vkyf onfh International Comparison Program tqdkygpm&if;Z,m; rsm;onf rnfonfhaiGaMu;onf rwlnDonfhEdkifiHrsm;wGif okH;pGJEdkif jcif;tm;tjynfjynfqdkif&maiGaMu; &efykHaiGtzGJUtpnf; (IMF) uJhodkY aom tzGJUtpnf;rsm; okH;pGJrI tay:wGif cefYrSef;wGufcsufxm; jcif;jzpfonf/ tqdkygavhvmrI onf 2005 ckESpfaemufydkif;rS yxrqkH;jyefvnfpwifjcif;vnf; jzpfonf/ IMF taejzifh 2011 ckESpfESifh 2014 ckESpfMum;wGif w½kwfEdkifiH pD;yGm;a&;tm; 24 &mcdkifEIef; jrifhwufvmrnf[k cefYrSef;xm;NyD; tar&duefEdkifiHrSmrl 7 'or 6 &mcdkifEIef;omjrifhwufvmEdkifaMumif; cefYrSef;xm;onf/
  18. 18. May 8-14, 2014 Myanmar Business Today mmbiztoday.com INVESTMENT & FINANCE 18 Myanmar Summary Contd. P 19... Contd. P 19... EightReasonsDeloitteThinksSoutheastAsiaIsPoisedtoGrow C haly Mah Chee Kheong is CEO of Deloitte South- east Asia and Regional Managing Director of Deloitte pan-Asia insights at the 2014 Milken Institute Global Confer- ence. He believes ASEAN mem- ber nations are well positioned, China has moderate rational Partnership remains an inter- esting yet incomplete idea and the ASEAN Economic Commu- nity could be regionally game changing. 1) China reforming Mah believes China’s outlook is “short term pain, long term gain.” President Xi Jinping has made clear he is looking for more sustainable growth and more inclusive growth and this - uring. For example, geographic - in the country means pushing more industry west where la- bour costs may be cheaper but logistical costs of transporting goods will be higher (than in coastal cities). Also, President Xi Jinping has said he wants to restructure China’s state- owned enterprises (SOEs) but Mah says “they’re not ready to compete” to global standards and this will be a lengthy pro- cess. Mah points out that dur- 2008, the Chinese government told the banks to put money into the system which wound up largely in the hands of SOEs and real estate investments, both now areas requiring re- forms alongside the non-per- forming loans (NPLs) situa- tion. This all said, while China will have some lumpiness that will be felt through the region, China’s long-term outlook will be better if President Xi Jinping succeeds with his agenda. 2) Japanese companies geographic expansion - pan political tensions combined with the Chinese slow-down is - sifying away from China as op- portunities present themselves. Japanese business that would have previously opened another factory in China are now mov- ing to Vietnam, Thailand, Indo- nesia and more recently Myan- mar. Mah just set up a Deloitte rapidly recognised they need- ed one Japanese speaker on enough and now has two. 3) Manufacturing rotation With manufacturing costs moving higher in China, a num- ber of countries with cheaper Indonesia, Cambodia, Vietnam, Bangladesh and Myanmar. All of these countries have large populations with young work- ing populations. For skilled labour, this is migrating to In- donesia and then some to the cheaper Vietnam. Bangladesh has predominantly become a garment centre. Myanmar, which is only recently opening up, promises to provide a new centre of cheap labour. - ship - ship (TPP) began as a free trade agreement between Brunei, Chile, New Zealand and Sin- gapore. Subsequently, it has broadened with Australia, Can- ada, Japan, Malaysia, Mexico, Peru, Vietnam and the United States joining at the negotiat- ing table. With at least another eight countries expressing in- terest, the TPP has the potential to become a broad free trade agreement between many coun- tries. However the question re- mains how long it will take to complete. While much has been made of China not being a party to TPP negotiations, Mah thinks (a) China already has trade agreements with ASEAN coun- tries that will give it a backdoor into the TPP trade arena and (b) that if the TPP is in fact estab- will push for and gain inclusion. 5) ASEAN Economic Com- munity The ASEAN Economic Com- munity (AEC) aims to emulate the successes of the European Union’s aspects of free trade and closer relationships while avoiding the pitfalls of the Eu- ropean Union such as a com- mon currency. The AEC will include the ten ASEAN coun- tries of Brunei, Cambodia, In- donesia, Laos, Malaysia, My- anmar, Philippines, Singapore, Thailand and Vietnam. The target date to launch this com- munity is December 31, 2015. While Mah thinks they may not get everything in place by then they had hoped, there should be at least one or two pieces of the economic community plan in place by then to launch. This will create a community of about 600 million people, about 100 million people larger than the EU or approximately half of the population of either China or India. Mah foresees this becoming a “very power- ful economic area” that should 6) Corporate and public debt Concerns were expressed ear- lier in the day at Milken Insti- tute Global Conference that the low rate environment in global credit markets has covered up the need for economic reforms in emerging economies. Mah JustinMott/Bloomberg GunawanKartapranata “ The ASEAN Economic Community (AEC) aims to emulate the success- es of the European Union’s aspects of free trade and closer relationships while avoiding the pitfalls of the European Union such as a common currency.” Deloitte ta&SUawmiftm&S trI aqmift&m&SdcsKyfESifh Deloitte tm&S- ypdzda'oqdkif&mOD;aqmifñTefMum;a&; rSL; Chaly Mah Chee Kheong tae jzifh 2014 ckESpf Milken Institute Global Conference wGif tm&Sa'o Mum;cJhonf/ Mah taejzifh w½kwfEdkifiHtay: tjrifrSm a&wdkwGifem? a&&SnfwGifom (Short term pain, Long term gain) jzpfonf/w½kwfor®wtaejzifh EdkifiHtm; vkHavmufonfh wkd;wufrIESifh tm;vkH; yg0ifonfh wdk;wufrIwpfck jzpfay:ap&ef vdktyfonfh jyifqifrIrsm;jyKvkyf&ef&Sif;vif; odtjrif&Sdoljzpfonf/w½kwfor®wtae jzifh w½kwfEdkifiH tpdk;&ydkifvkyfief;rsm; tm; jyefvnfjyifqifvdkonf/ odkYaomf ,SOfNydKifEdkif&eftqifhoifhrjzpfao;aMumif; Mah rS xifjrifcsufay;xm;onf/ w½kwfESifh *syefwdkY EdkifiHa&;wif;rmrI ESifh w½kwfEdkifiH pD;yGm;a&;usqif;vmrI onf *syefvkyfief;rsm;tm; w½kwfonf [k ,lqvmaponf/*syefvkyfief;rsm; taejzifh ,cifu w½kwfEdkifiHwGif puf½kH rsm;zGifhvSpfcJhaomfvnf; ,ckktcg AD,uf erf? xdkif;? tif'dkeD;&Sm;ESifh jrefrmEdkifiH wdkYqDodkY a&TUajymif;vmMuNyDjzpfonf/ w½kwfEdkifiHwGif xkwfvkyfrIp&dwfjrifhwuf vmonfESifhtrQ vkyftm;coufomonfh tif'dkeD;&Sm;? uarÇm'D;,m;? AD,uferf? b*Fvm;a'h&SfESifh jrefrmwdkYonf a&G;cs,f p&mrsm; jzpfvmonf/ xdkEdkifiHrsm;onf vlOD;a&rsm;jym;onfhEdkifiHrsm;jzpfNyD; vli,f vkyfom;trsm;tjym;&SdonfhEdkifiHrsm;jzpf onf/ taejzifh rMumao;rDu b½lEdkif;? csDvD? e,l;ZDvefESifh pifumylEdkifiHrsm;odkY ukef oG,fvGwfvyfcGifhpmcsKyfrsm; pwifcsKyfqdkcJh onf/ xdkYtjyif MopaMw;vs? uae'g? *syef? rav;&Sm;? ruúpDudk? yD½l;? AD,uferf ESifh tar&duefwdkYrS aqG;aEG;rIwGif yg0if

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