Vol 2, Issue 24

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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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Vol 2, Issue 24

  1. 1. June 19-25, 2014 Myanmar Business Today mmbiztoday.com mmbiztoday.com June 19-25, 2014| Vol 2, Issue 24MYANMAR’S FIRST BILINGUAL BUSINESS JOURNAL Myanmar Summary Inside MBT Myanmar Can Double Rice Exports Through Policy Reforms: WB Report advises Myanmar to rethink its rice export strategy M yanmar has the potential to more than double its rice exports by implementing policy re- forms, a new World Bank report said. In a bid to increase rice exports, Myanmar has to diversify and increase its rice production, open its rice milling sector to di- rect foreign investments and reduce export pro- cedure costs, thereby al- leviating rural poverty, said the report, Myan- mar: Capitalizing on Rice Export Opportunities, by the World Bank and the Livelihoods and Food Se- curity Trust Fund (LIFT) of Myanmar. “Reforms are required as a policy environment conducive to supporting this refocus of the rice export sector is essential if anything is to change,” said Andrew Kirkwood, LIFT’s fund director. Kirkwood said much of the policy change can be introduced without cost May Soe San “Consistent economic policies without anti-ex- port bias, alongside the to improve farmer access rates of return for Myan- mar rice exports, for its farmers and for the rural poor.” Improving agricultural productivity and promot- ing rice exports have been among the top priorities for the current govern- ment. Despite its plan to export four million tonnes of rice by 2020, the actual annual rice ex- port has reached only 1.3 million tonnes over the past years. The current rice ex- port strategy favours the production of low qual- ity rice, which is largely sold to Africa and China, the report said, adding that farmers have earned businesses have skipped necessary investments. It warned that the situation is worsening as the global demand for low quality broken rice is shrinking. “This is now a govern- ment call to capitalise on rice export opportuni- incomes to smallholder farmers,” said Kanthan Shankar, the World Bank’s country manager for Myanmar. “Rice production is a source of livelihoods for about 70 percent of the population. Higher and port improves farm in- comes and food security of the rural poor, he said. Shankar added that in- creasing rice exports will spur momentum for in- clusive growth and pover- ty reduction in Myanmar for the next decade. The report said there are good market pros- pects for Myanmar to ac- commodate more diver- Myanmar over the next 10-15 years, particularly in the European Union and Asian countries, earn higher incomes, and di- ent markets. The obstacles in hitting these marks are low pro- ductivity and poor rice quality at the farm level, undercapitalised and in- costly export infrastruc- ture and procedures, the report noted. Opening the rice mills to direct foreign invest- ments is, according to the report, a vital step to take to increase quality and volumes of rice export. Improving infrastructure and reducing export pro- cedure costs would also boost Myanmar’s export competitiveness, it added. The World Bank report SoeZeyaTun/Reuters jrefrmEdkifiHonfqefpyg;jynfy wifydkYrIudk ESpfqjr§ifhwifEdkifrnfh tvm;tvmaumif;rsm;&Sdaeojzifh jyKjyifajymif;vJrIrsm;vkyf&ef vdktyfaMumif; toufarG;0rf; ausmif;rIESifhpm;eyf&du©mzlvHka&; &efyHkaiGtzGJU(Lift) ESifh urÇmhbPf okYd yl;wGJa&;om;xm;onfh tpD &ifcHpmopfwGifazmfjyxm; onf/ ,if;odkYjr§ifhwifEdkif&efjrefrmEdkifiH onfqefpyg;xkwfvkyfrIudkwdk;jr§ifh oGm;&efqefpyg;BudwfcGJonfhvkyf ief;wGif EdkifiHjcm;wdkuf½dkuf&if;ESD; jr§KyfESHrIrsm;udkzdwfac:oGm;&efESifh Contd. P 12... Contd. P 12... When Investors Turn into Bullies P-7 US Commerce Secretary Touts “Closer Ties” with Myanmar P-10 Myanmar’s Institutional Infra- structure Constraints and How to Fill the Gaps P-11
  2. 2. June 19-25, 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 & Contributors Htun Htun Minn, May Soe San, Kyaw Min, Wai Linn Kyaw, Aye Myat, Aung Phyo, Zwe Wai, Phyo Thu, David Mayes, Sherpa Hossainy, Nicholas Borroz, Rita Nguyen, David DuByne 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, Aye Chan Wynn 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 Property tax to be introduced to deter specula- tion Arrangements will be made to levy property taxes on speculators after studying international practices and consulting experts, local authorities and businessmen, Parliament in response to a query. Property prices in Myanmar have reached record highs after the country launched sweeping economic reforms in 2012. MOGE invites tender for consultancy services State-run Myanma Oil & Gas Enterprise (MOGE), under the Ministry of Energy, announced that it is in- terested to establish joint venture or alliance projects for drilling, seismic acquisition and pipeline construc- tion and maintenance services with a potential partner who is reputable and internationally recognised in the commence around August 1, is to help in legal and tech- nical assessment as required in JV processes, tender tion of bidders, JV agreement and contract prepara- tion, MOGE said. Duration of the assignment will be six months, but may be extended, MOGE added. Philippine-based Cebu Air Inc, operator of budget air- proval of Civil Aeronautics Board (CAB) for a combined 2,520 seat entitlements per week to Yangon, Filipino media reports. Cebu and Tiger both want 1,260 weekly seats for the Manila-Yangon route. The Philippines and Myanmar signed a new air agreement on May 20, up- dating the pact that was signed in 1979 by increasing improving trade and investments between the South- east Asian neighbours. The new agreement allowed the designated airlines of each country a total of 3,780 seats between Manila and points in Myanmar. ing bile banking services within weeks, bringing the total number of such providers to four, local media reported, Innwa Bank and Myawaddy Bank, both owned by the First Private Bank and CB Bank will be granted permis- sion for mobile banking. Myanmar is preparing to set up a credit bureau that will pave the way for some important steps forward in they disappeared when the banks that introduced them collapsed in 2003. centre agement centre in Nay Pyi Taw in a bid to help local emergencies, the European Union said. The EU-funded centre will be ready for 24-hour service and work to- gether with the ASEAN Coordination Center for Hu- manitarian Assistance and other crisis management centres from member countries of the ASEAN in emer- gency situations. ploring opportunities to export its products to Myan- mar and is understood to have initiated a process to ink a deal with the neighbouring country, according to Indian media reports. P Padmanabhan, managing di- cussion with the Ambassador of Myanmar to India and he is positive in that regard, Assam Tribune reported. According to a study, the demand for oil products in Myanmar is expected to reach 60,000 barrels per day. Myanmar Summary jrefrmEdkifiH tdrfNcHajra&mif;0,frIrsm;tm; tcGefaumufcHEdkif&ef twGuf EdkifiHwumwGif vufawGUusifhoHk;aeaomenf;pepfrsm;ESifh jynfwGif;tmPmydkifrsm;? pD;yGm;a&;vkyfief;&Sifrsm;ESifhtwdkifyifcHrsm; ESifhaqG;aEG;wdkifyifNyD;ygu tdrfNcHajrcGefaumufcHrnfhOya'udk jy|mef; oGm;rnf[k or®w½Hk;0efBuD; OD;pdk;armifu ajymcJhonf/ pGrf;tif0efBuD;Xmevufatmif&Sd tpdk;&ydkif jrefrmha&eHESifhobm0 "mwfaiGUvkyfief;onf a&eHwl;azmf&SmazGa&;vkyfief;? ajrivsifESifh "mwkwdkif;wma&;vkyfief;? ydkufvdkif;wnfaqmufa&;vkyfief;ESifh jyKjyif xdef;odrf;a&;vkyfief;rsm;vkyfaqmif&eftwGuf jynfwGif;? jynfyukrÜPD rsm;udk tusKd;wlyl;aygif;vkyfaqmif&ef zdwfac:cJhaMumif; od&onf/ zdvpfydkiftajcpdkuf pDbl;tJ,m;vdkif; vkyfief;cGJwpfckjzpfonfh wefzdk; enf;tdrf&mrsm;jzpfaom wdkuf*g;avaMumif;vdkif;onf jrefrmEdkifiHodkY avaMumif;ysHoef;rIrsm; pwifjyKvkyfEdkif&ef pDpOfaeonf[k od&onf/ jynfwGif;yk*¾vdubPfav;ckjzpfonfh tif;b0bPf? jr0wDbPf? yxryk*¾vdubPfESifh CB bPfwdkYonf rdkbdkif;bPfvkyfief;vkyfudkifEdkif &ef A[dkbPfodkY avQmufxm;cJhaMumif; od&NyD; ,if;bPfrsm; vkyfief;vkyfudkifEdkif&ef rMumrDtcsdeftwGif; vkyfief;vkyfudkifcGifhrsm; csay;oGm;rnf[k od&onf/ tdE´d, avmifpmqDukrÜPDwpfckjzpfonfh Numaligarh odkY wifydkY&efpDpOfaeaMumif; od&onf/ tqdkygukrÜPDavhvm csufrsm;t& jrefrmEdkifiHonf wpfaeYvQif avmifpmpnfayygaygif; 60ç000 ausmf toHk;jyKaeaMumif; od&onf/
  3. 3. June 19-25, 2014 Myanmar Business Today mmbiztoday.com 3LOCAL BIZ Myanmar Summary Myanmar Summary Myanmar Summary Thilawa SEZ Construction Permit by July Htun Htun Minn C onstruction permits for Thilawa Special Econom- ic Zone will be granted by July, U Set Aung, chairman of Thilawa SEZ Management Committee, said. Most of the countries seeking permit are from Asia, he added. A total of 45 companies from 11 countries have currently applied for permits for the 394-hectare (960 acres) Class A area, which went on sale last month for manufacturing en- project. “Majority of the applicant companies are from Japan, fol- lowed by Hong Kong. Only one US company and three Swedish companies have submitted pro- posal to lease land,” U Set Aung, who is also the Vice President of Central Bank of Myanmar, said. “Among ASEAN countries, most proposals came from Thailand, Singapore and Ma- laysia. Currently, we are scruti- nising the applications and we will grant construction permits by next month,” he said. Investors who want to lease land inside the project area are allowed to get the land on a 50- year lease with $70 per square metre, a source from the Thil- awa SEZ Public Company said. Companies need to submit business and investment plans to get the land and the board Committee to Halt Granting Foreign Bank Licences May Soe San T he Banking and Finan- cial Development Com- mittee of the Parliament will propose to the Central Bank of Myanmar to halt grant- ing banking licences to foreign banks until a modern Financial Institutions Law is enacted, a member of the committee said. have provision to deal with corruption in banks but My- anmar’s 1990 Financial Law doesn’t have such terms. We have to amend the current law or enact a new one to make way for provisions like this,” U Phyo Min Thein, who is also a Mem- ber of the Parliament, said. The committee recently met with the foreign bank licence is- suing committee and local bank representatives and decided to carry out further steps to having a modern law, he said. According to recent reports, the government is expected to grant licences to as many as 10 foreign banks to carry out lim- ited operations in Myanmar. There are 36 foreign banks who have opened their representa- government may grant the li- cences by the end of September, a Reuters report said. banks to advise regarding for- eign bank licences as no regu- lations have been issued by the Central Bank of Myanmar, said U Pe Myint, managing director of Cooperative Bank. Police to Beef Up Security for Foreign Buyers at Jade Expo Kyaw Min M yanmar Police Force will arrange special se- curity for foreign gems buyers at the upcoming Myan- ma Gems Emporium at Nay Pyi Taw, U Kyaw Htay, secretary of Gems Entrepreneurs Associa- tion, said. The authorities will deploy a special tourist police force unit, which will also provide health services and other assistances to foreign gems buyers, he said. “We would like to ensure safe- ty for all the foreign buyers and we will try to provide every kind of assistance,” U Kyaw Htay said. The 51st Myanma Gems Em- porium will be held from June 24 to July 6 at Mani Yadana Hall in the capital city. A total of 7,500 gem lots will be displayed at the emporium – 2,100 lots of which are from the government and the rest will be displayed by local companies. will base their decisions de- pending on the plans, he added. “We will decide based on the structure of the factory and how they are going to use those lands. There is no time limit for the construction of the factory. We will also check their com- mercial operation plan,” U Set Aung said. oDv0gtxl;pD;yGm;a&;ZkefwGif t"du 0ifa&mufjr§KyfESH&ef tqdkjyKxm;onfhEdkifiH taqmufttHkqdkif&mvkyfudkifcGifhygrpf rsm;udk ZGefvtwGif; tNyD;csay;oGm;rnf jzpfaMumif; oDv0gtxl;pD;yGm;a&;Zkef pDrHcefYcGJa&;aumfrwD OD;qufatmifu ajymonf/ oDv0gtxl;pD;yGm;a&;Zkefyxrtqifh pDrHudef;twGuf xkwfukefvkyfief;rsm; aqmif&GufEdkif&eftwGuf A Class tqifh&Sd ajr[wfwm 394 ({u 960) cefYudk arv 23 &ufaeYrSpwifa&mif;cs cJhjcif;jzpfNyD; vuf&SdwGif EdkifiHaygif;11 EdkifiH rS ukrÜPDaygif; 45 ck tqdkjyKvTmwif xm;onf/ tqdkjyKvTmwifxm;onfhEdkifiHrsm;xJwGif *syefEdkifiHutrsm;qHk;jzpfNyD;a[mifaumif rS 'kwd,trsm;qHk;jzpfonf/vuf&Sdtcsdef txd tar&duefEdkifiHukrÜPDwpfckom tqdkjyKvTmwifxm;NyD; Oa&myEdkifiHrsm; xJrS qDG'ifEdkifiHu ukrÜPDoHk;cktqdkjyKxm; aMumif;A[dkbPf'kwd,Ouú|OD;qufatmif u ajymonf/ ]]tmqD,Ha'owGif;EdkifiHawGxJu xdkif;? pifumyl? rav;awGu tqdkjyKvTmtrsm; qHk;jzpfaew,f/ taqmufttHkwnf aqmufcGifhygrpfawGtwGuftckvtwGif; csay;Edkifatmif pdppfrIrsm; tjrefqHk; ajymonf/ ,if;odkYoD;oefYvHkNcHKa&;aqmif&Gufay; &mwGif ausmufrsuf0,f,lonfh EdkifiH jcm;om;rsm; vHkNcHKa&;tjyif usef;rm a&;ESihftjcm;0efaqmifrIudpörsm;udkyg urÇmvSnfhc&D;oGm;rsm;apmifha&Smufa&; &JwyfzGJUu ulnDaqmif&Gufay;oGm;rnf jzpfaMumif; od&onf/ ausmufrsufvkyfief;&Sifrsm;toif;rS twGif;a&;rSL;jzpfol OD;ausmfaX;u ]]ausmufrsuf0,f,lrnfh EdkifiHjcm;om; wpfOD;csif;pD&JU vHkNcHKa&;udk tao;pdwf aqmif&Gufay;oGm;rSmyg/'ghtjyif EdkifiHjcm; om;awG&JUusef;rma&;ESifhwjcm;vdktyfwJh udpöt00awGudkyg ulnDaqmif&Gufay; oGm;rSmyg}}[k ajymonf/ EdkifiHjcm;bPfrsm;zGifhvSpfcGifhjyK&ef NyD; jynfhpHkonfhaiGaMu;tzGJUtpnf;qdkif&m Oya'jy|mef;NyD;rSom vkyfaqmifoifh aMumif; A[dkbPftm; jynfolUvTwf awmf? bPfrsm;ESifhaiGaMu;qdkif&mzGHUNzdK; wdk;wufa&;aumfrwDu 'ortBudrf vTwfawmftpnf;ta0;wGif wdkufwGef; oGm;rnf[k jynfolUvTwfawmfudk,fpm; vS,f OD;NzdK;rif;odef;u ajymonf/ EdkifiHwum&Sd b@ma&;qdkif&mOya' rsm;wGif bPfrsm;NydKvJ&mü ajz&Sif;rItqifh wpfrS av;txd t"duxnfhoGif;jy|mef; xm;Edkifaomfvnf; jrefrmEdkifiH&Sd 1990 Oya'onf tqifhwpfwGifyif rSDEdkif onfhtajctaewGifr&SdaMumif; jynfolU vTwfawmf bPfrsm;ESifh aiGaMu;qdkif&m zGHUNzdK;wdk;wufa&;aumfrwD0ifOD;NzdK;rif;odef; u oHk;oyfajymMum;cJhonf/ jrefrmEdkifiHwGif udk,fpm;vS,f½Hk;cGJzGifh vSpfcGifh&&Sdxm;onfh EdkifiHjcm;bPf 42 bPfteufrS EdkifiHjcm;bPf 10 ckudk uefYowfvdkifpifjzifh bPfvkyfief;wcsKdU udk vkyfudkifcGifhjyKrnfjzpfonf/ SoeZeyaTun/Reuters SoeZeyaTun/Reuters
  4. 4. June 19-25, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 4 Myanmar Summary Myanmar Summary Yusen Logistics Opens Aye Myat J apanese freight forwarder and logistics services pro- vider, Yusen Logistics has Yusen Logistics (Myanmar) Co Ltd sees Yusen Logistics’ pres- ence increase to 40 countries around the world, Yusen said in a statement. Hiromitsu Kuramoto, presi- dent of Yusen Logistics Co Ltd, said: “With our medium-term business plan ... Yusen Logis- tics will continue to push ahead with our expansion program in the ASEAN region. “We are continuing to build on our established infrastruc- ture, rolling out networks to mirror clients’ changing sourc- ing patterns.” Hiromitsu said with the grow- ing importance of logistics in US to Help Myanmar Improve Highway Safety Aung Phyo T he United States will help Myanmar improve the safety of the Yan- gon-Mandalay highway where hundreds of car accident cases years. The United States Agency for International Development (USAID) and the Ministry of Construction signed a letter of agreement recently on this re- gard. US architecture and engi- neering experts will train and mentor Ministry of Construc- tion engineers and technicians in international highway safety standards as they construct safety enhancements along a ten-kilometre section of road. This demonstration section, funded in cooperation with the US Government, will serve as a model for ongoing improve- ments implemented by the Ministry of Construction along the full length of the highway, the US Embassy in Yangon said in a statement. “As the economy grows, trans- portation infrastructure will have to accommodate more - bassador Derek Mitchell. “But this issue is about more than economic development; it is about saving lives. I am pleased the United States will be able to improve a small sec- tion of the Yangon-Mandalay Highway, and work with the Ministry of Construction to help address very real concerns about safety standards.” The Yangon-Mandalay High- way, which is the main ground route from Yangon to Nay Pyi Taw and runs through the cen- tre of the country, stretches 386 miles between Yangon, the country’s commercial cen- tre, and Mandalay, a city of ap- proximately one million people. Three thousand vehicles drive the highway every day. Increased speed and a lack of standard highway safety meas- ures have resulted in a dispro- portionately high number of vehicular fatalities on this road. to 2014, over 700 highway acci- dents have claimed the lives of over 360 victims. Myanmar, Yusen Logistics’ pro- vision of valuable logistics ser- vices will contribute to the de- velopment of the country. YusenLogistics *syefEdkifiHtajcpdkuf ukefpnfydkYaqmif a&;ESifh Logistics 0efaqmifrI u krÜPDwpfckjzpfonfh ½Hk;cGJwpfckudk &efukefNrdKUü zGifhvSpfoGm; rnf[k od&onf/ ukrÜPDxkwfjyefcsuft& ½Hk;cGJaygif; 40 ausmf wdk;csJUzGifhvSpfoGm; &ef pDpOfaeonf[k od&onf/ ukrÜPDOuú| Hiromitsu Kuramoto u ]]uRefawmfwdkY&JU a&wdk? a&&SnfpDrH udef;awGudk tmqD,Ha'owGif;rSm qufvufzGJUpnf;oGm;zdkYtpDtpOf&Sdyg w,f/ NyD;awmh jrefrmEdkifiHtaeeJY Logistics u@awGrSm zGHUNzdK;wdk;wufzdkY uRefawmfwdkYukrÜPDtaeeJY taxmuf tulay;EdkifrSmyg}}[k ajymcJhonf/ tar&duefEdkifiHonf ,mOfrawmf wqrIrsm;jzpfyGm;NyD; vlaoqHk;rIrsm; jzpfay:vsuf&Sdonfh &efukef-rEÅav; tjrefvrf;rBuD;tm; tqifhjr§ifhwif&ef ulnDay;oGm;rnf[k od&onf/ tar&duefjynfaxmifpkEdkifiHwum zGHUNzdK;wdk;wufa&;at*sifpD (USAID) ESifh aqmufvkyfa&;0efBuD;XmewdkY rMumao;rDu tqdkygtjrefvrf;tm; tqifhjr§ifhwif&eftwGuf oabmwl pmcsKyfcsKyfqdkcJhNyD; USAID rS aqmuf vkyfa&;0efBuD;Xmevufatmuf&Sd ynm &Sifrsm;tm; enf;ynmESifhEdkifiHwum ta0;ajy;vrf;rvHkNcHKpdwfcsa&;pHcsdef pHñTef;rsm;udk oifwef;ay;oGm;rnfjzpf onf/ WaiLinnKyaw
  5. 5. June 19-25, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 5 Myanmar Summary Ball Corp Becomes First US Investor in Thilawa SEZ Phyo Thu A merican packaging and poration is to set up a one-line beverage can manufac- turing plant in the Thilawa Spe- cial Economic Zone (SEZ). company to invest in the much- touted Thilawa SEZ, 20 kilome- tres southeast of Yangon. Last month Ball announced that it will open a can plant in Myanmar, without specifying the factory location. A contract agreement was signed between Ball Corp and the Myanmar-Japan Thilawa Development (MJTD) Co Ltd for the establishment of the plant. The signing came on the heels of US Secretary of Com- merce Penny Pritzker’s Myan- mar visit earlier this month. The US Embassy in Yangon said in a statement that the plant will employ local work- contribution” by a US company to Myanmar’s development. “The United States believes that responsible investment by US companies in this coun- try can support broad-based economic development, help deepen continued political and economic reforms, and high- light the highest standards of corporate social responsibility,” the statement said. The one-line plant is expected to begin production in mid- 2015 with investment in the fac- tory to the tune of $40 million, Ball Corp said. ity to produce beverage cans for Coca-Cola Pinya Beverages under a long-term agreement, as well as other local, regional and multinational customers, it said. During an event highlighting US investment, including Ball’s new plant, Pritzker said the Ball factory opening is “already en- couraging further engagement tablished in Myanmar. “Coca-Cola is one of these companies. Coca-Cola re- opened operations here in 2012, began manufacturing lo- cally one year ago, and has al- ready committed to buy more than half of the cans produced at Ball’s new facility,” she said. “When our [American] busi- nesses make investments, they bring with them the highest standards, including a commit- ment to corporate and social re- sponsibility,” she added. More than 45 companies from various countries are in the pro- cess of setting up manufactur- ing plants and industries in the SEZ, state-run media reported. MJTD was formed by two My- anmar companies and two Jap- anese companies, with stakes split 51 percent for Myanmar and 49 percent for Japan. The two Myanmar compa- nies are Thilawa SEZ Manage- ment Committee and Myanmar Thilawa SEZ Holdings Public Co Ltd (MTSH), while the two Japanese companies include MMS Thilawa Development Co Ltd and Japan International Cooperation Agency (JICA). The land lease procedure for Phase 1 of the Thilawa Class A Area, which is about 396 hec- tares (978 acres), started last month. The commercial run of the SEZ is expected in mid-2015. Japan Gives $75m for Construction, Rural Zwe Wai Tassistance worth $75.7 million for the develop- some areas of Myanmar. Three memoranda of understanding (MoUs) were signed between Deputy Minister for National Planning and Economic Development Daw Lei Lei Thein and Japanese Ambassador to Myanmar Tateshi Higuchi in Nay Pyi Taw recently. billion ($41.3 million) for the construction of the new cation projects. Myanmar Summary *syeftpdk;&onf jrefrmEdkifiHaqmufvkyfa&;vkyfief;rsm;ESifhaus;vuf a'orsm;wGifvQyfppf"mwftm;&&Sda&;twGuftar&duefa':vm 75 'or 7 oef;udk tultnDay;oGm;rnf[k od&onf/ trsKd;om;pDrHudef;ESifhpD;yGm;a&;zGHUNzdK;wdk;wufrI0efBuD;Xm'kwd,0efBuD; a':vJhvJh0if;ESifh*syefEdkifiHoHtrwfBuD;Tateshi HiduchiwdkYaejynf awmfwGifrMumao;rDua&;xdk;cJhaomem;vnfrIpmcRefvTmwGifoabmwl nDcJhjcif;jzpfonf/ pmcsKyft&*syefEdkifiHonf&efukefNrdKUomauwwHwm;aqmufvkyfa&; pDrHudef;twGuftar&duefa':vm41'or3oef;?ynma&;tqifhjr§ifh wif&eftwGuftar&duefa':vm24'or6oef;ESifhaus;vufa'o rsm; vQyfpp"mwftm;&&Sda&;pDrHudef;twGuf tar&duefa':vm 9 'or 8 oef;udkulnDyHhydk;ay;rnf[k od&onf/ BallCorp tar&duefxkyfydk;rIESihf avaMumif; vkyfief; taejzihf oDv0gtxl;pD;yGm;a&;ZkefwGif tcsKd&nf xkwfvkyfa&;puf½Hkwpfck wnfaqmuf Edkif&ef vkyfaqmifvsuf&SdaMumif; od& onf/ xdkodkYvkyfaqmifaeonhftwGuf Ball taejzihf &efukefNrdKU ta&SUawmif buf&Sd uDvdkrDwm 20 uGma0;onhf oDv0gtxl;pD;yGm;a&;ZkefwGif &if;ESD;jr§KyfESH onhf yxrqkH;aomtar&duefukrÜPD jzpfvmrnfjzpfonf/ Ball taejzihf ,cifvuvnf; jrefrm EdkifiHwGif tcsKd&nfowåKbl;puf½kHwpfck wnfaqmufrnfjzpfaMumif; xkwfazmf ajymMum;cJhNyD; puf½Hkae&mtm; azmfjy jcif;r&SdcJhay/ Ball ESihf jrefrm-*syef oDv0gzGHUNzdK; wdk;wufa&;ukrÜPDvDrdwufwdkYonf tqdkygpuf½kHwnfaqmufa&;twGuf oabmwlpmcskyf vufrSwfa&;xdk;NyD;jzpf aMumif;vnf; od&onf/ &efukefNrdKU&Sd wGiftqdkygpuf½kHtaejzihfjynfwGif;vkyf om;rsm;cefYtyfrnfjzpfonf/
  6. 6. June 19-25, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 6 S Korea to Open Polytechnic University in Myanmar To provide assistance in agricultural development Zwe Wai S outh Korea and Myanmar will cooperate in technol- ogy development by open- ing a polytechnic university in the Southeast Asian country. The government has ap- proved a draft memorandum of understanding between My- anmar and South Korea on this project, according to Dr Aung Kyaw Myat, deputy minister for science and technology. The South Korea Polytechnic University and the Ministry of Science and Technology are conducting a feasibility study for further discussions on sub- jects and curriculums planned. South Korea has been helping Myanmar in the development of a number of sectors includ- ing agriculture and its mecha- nisation, irrigation technology, rural and socio-economic de- velopment, and public health. The Korea International Co- operation Agency (KOICA) is also providing assistance in GAP Becomes First US Apparel Retailer in Myanmar A merican clothing and accessories re- tailer Gap Inc said it plans to produce ap- parel at factories in My- major US apparel retailer to enter the impoverished Southeast Asian nation’s lucrative garment indus- try. The US Embassy in Yan- gon said products made at two Yangon factories would be in Gap stores by this summer. “The garment industry stands poised to become a exports and opportuni- ty for the people of this country,” the US embassy said in a statement. The San Francisco- based retail giant said it has signed a sourcing deal with South Korean-owned factories in Myanmar, while the two factories are reportedly producing vests and jackets for the company’s Old Navy and Banana Republic brands. According to textile in- garment exports had hit a high of $850 million in 2001, but plunged after the US toughened sanc- tions in 2003 in protest at the junta’s detention of Aung San Suu Kyi. Myanmar’s garment in- dustry – which employed approximately 300,000 people in the early 2000s, according to government the trade embargo. Be- fore the embargo, apparel Kyaw Min PaulSakuma/AssociatedPress accounted for nearly 40 percent of Myanmar’s exports, with about half going to the US. In 2004, the US State Department estimated more than 50,000 garment jobs had been lost to sanctions. The Obama administra- tion started lifting those sanctions in 2012, after a new nominally civilian government in Myanmar enacted a series of eco- nomic and political re- forms. More than a year ago, Coca-Cola Co started producing Coke in My- anmar, pledging to spend $200 million here over - can companies, including General Electric and APR Energy, have embarked - ments in Myanmar. In arm signed a $960 mil- lion contract to lease 10 Boeing aircraft to carrier Myanmar Airways, and in February APR Energy won a contract to refur- bish a 100-megawatt power plant in the coun- try, an investment valued at $30 million. Gap, which sources ap- parel from roughly 40 countries, didn’t specify how much it is investing in the Myanmar project. Based on the employment Gap expects to create – its apparel orders and as many as 4,000 indirect jobs in the country – it is likely one of the largest US economic commit- ments to Myanmar since the end of sanctions, the Wall Street Journal re- ported. Gap said its decision to source garments from Myanmar was taken after a rigorous due diligence process which saw the company engaging ex- tensively with US govern- and union representatives and international and lo- cal NGOs in Myanmar in order to better under- stand the opportunities and challenges of doing business in the country. As part of the company’s commitment to transpar- ency, Gap said it will vol- untarily disclose and pub- lish information about its practices in Myanmar consistent with the Unit- ed States government’s reporting procedures. Gap will also operate in partnership with the US Agency for International Development (USAID) on a project to improve skills among Myanmar’s largely female textile industry workforce. The company’s partner- ship with USAID will help lay the foundation for Gap Inc to provide growth and economic opportunities for women in the country, the US embassy said. “By entering Myanmar, we hope to help acceler- ate economic and social growth in the country, and build on our track record of improving working conditions and building local capacity in garment factories around the world,” said Wilma Wallace, the vice presi- dent of Gap’s Global Re- sponsibility division. The US embassy state- ment, which was released following the signing of the USAID partnership, added that Gap would ensure the factories it is sourcing from meet “in- ternationally recognised human rights and labour standards”. Gap’s ven- dors in Myanmar will be bound by the company’s Code of Vendor Conduct, it said. Workers at the South Korean-owned factories supplying the Gap prod- ucts – which Gap says competitive reasons – are paid an estimated average of $110 a month, with supervisors earning as much as $1,000, ac- cording to the Wall Street Journal. Gap makes clothing, ac- cessories, and personal care products for men, women, children, and babies under its Gap, Ba- nana Republic, Old Navy, Piperlime, Athleta, and - cal year 2013 its net sales were $16.1 billion from its stores in about 90 coun- tries worldwide. Myanmar Summary Myanmar Summary some projects being imple- mented for the development of agriculture, encouraging export of Myanmar’s farm produce to South Korea. KOICA is helping Myanmar establish a Post-harvest Tech- nology Application Center in Nay Pyi Taw and provide farm equipment for killing pests in fruits and vegetables plants. KOICA also helped Myanmar in agricultural mechanisation by training farmers at Yezin, Nay Pyi Taw, while upgrading farm- land in other areas in the capital. Under a framework agree- ment, KOICA also extended a grant aid for 2013 to help My- anmar in the development of road network, a national statis- tical system, capacity building strategy for conferences, land reform program for mechanised farming and forest greening. South Korean investment in Myanmar stood at $3.05 billion in 86 projects as of January, ac- counting for 6.7 percent of the total foreign input – placing it sixth among foreign investor countries. Bilateral trade between Myan- mar and South Korea reached $1.76 billion in 2013, of which Myanmar’s export to South Ko- rea accounted for $554.59 mil- lion. awmifudk&D;,m;ay:vDwuúepf wuúodkvfESifhodyÜHESifhenf;ynm0efBuD;Xme wdkYtaejzifh tqdkygwuúodkvfwGifoifMum; rnfh bmom&yfESifh oif½dk;rsm;twGuf avhvmrIrsm;jyKvkyf&efqufvufaqG;aEG; oGm;Murnfjzpfonf/ awmifudk&D;,m;EdkifiHtaejzifh jrefrm EdkifiH zGHUjzdK;wdk;wufa&;twGuf u@ tawmfrsm;rsm;wGif vkyfaqmifvsuf&SdNyD; qnfajrmif;enf;ynm? aus;vufESifh vlrIpD;yGm;zGHUjzdK;a&;? jynfolUusef;rma&; wdkYwGifvnf; vkyfaqmifay;vsuf&Sd onf/ tar&dueft0wftxnfESifh qufpyfypönf;rsm; vufvD a&mif;csonfh tae jzifh jrefrmEdkifiHwGif txnfcsKyf puf&kHrsm; wnfaqmuf&ef pDpOf vsuf&SdaMumif;ajymMum;vdkufNyD; jrefrmEdkifiHtjrwftpGef;&&SdEdkif onfh txnfcsKyfvkyfief;odkY yxr qkH;0ifa&mufvmrnfh tar&d ueftxnfcsKyfvufvDvkyfief; tjzpf 0ifa&mufawmhrnfjzpf onf/ &efukef&Sd tar&duefoH&kH; ajymMum;csuft& &efukefpuf½Hk ESpfckwGif xkwfvkyfrnfh ypönf;rsm; taejzifh ,ckESpfaEG&moDwGif Gap Store rsm;ü a&mif;csrnf jzpfaMumif; od&onf/ txnfcsKyfvkyfief;taejzifh jrefrmEdkifiH&Sd jynfolrsm;tm; tvkyftudkifESifh wifydkYrItcGifh tvrf;rsm; zefwD;ay;Edkifrnfh t&if;tjrpfwpfckjzpfvmrnfjzpfa xkwfjyefcsufwGif xnfhoGif;azmfjy xm;onf/ qefz&efppöudktajcpdkuf vufvDvkyfief;BuD;taejzifh bif;onf jrefrmEdkifiH&Sd awmif udk&D;,m;ydkifpuf½kHrsm;ESifh yl;wGJvkyfief;&ef pmcsKyfcsKyfqdk xm;NyD; puf½kHESpfcktaejzifh ukrÜPD ESifh Republic trSwfwHqdyf t0wf txnfESifhtaEG;xnfrsm; xkwf vkyfoGm;rnfjzpfaMumif; od&onf/
  7. 7. June 19-25, 2014 Myanmar Business Today mmbiztoday.com 7 Myanmar Summary Contd. P 8... Contd. P 8... LOCAL BIZ When Investors Turn into Bullies MySQUAR’s Canadian founder Rita Nguyen tells a warning tale of trust in Myanmar M any people have been reaching out to me lately to ask for details on the “management shakeup” at MySQUAR and to date, I’ve been fairly qui- et about it because I was hoping to keep things civ- ilised, despite the hostile and aggressive manner in which the other side has been handling everything. Now that they have issued a press release letting everyone know that I’ve “stepped down”, it’s time to set the record straight because I’m damned if they tell my story for me. On May 9, I came back to Ho Chi Minh City the MySQUAR board of directors had removed me as the CEO with no notice and no reason given. Dur- ing the course of that one hour meeting they had cut me from all the internal systems and have since changed the locks on the doors. Even worse, they did the same to my co- founder but didn’t even give her the courtesy of letting her know. Instead, she found out when one called her to ask her about what was going on. The ensuing weeks have been highly emotional but as mentioned, I’ve kept it pretty quiet until now simply because I believed them when they said that they wanted to handle this amicably. Instead, they have spent the past few weeks adding insult to injury at every turn in- Rita Nguyen cluding kicking us out of the apartment in Yangon, sending me veiled threats (I’ve since resigned from the board), sending us threatening (but empty) letters from lawyers and as of June 6, bullying our lawyer into dropping us est”. One of the directors and shareholders of MyS- QUAR is Piers Pottinger of Bell Pottinger, a big PR guess is a client in another market. Despite the fact that Piers invested per- sonally (and only a small amount) into MySQUAR, he’s decided to go through our lawyer’s international partners to put pressure on our lawyer to drop us. I’m not entirely sure how they do business at Bell Pottinger but in my world you pay expenses and severance when you engage in further bullying tactics. At this point the com- pany has not paid the out- standingexpensesthatmy co-founder and I have in- curred, the salary that we had not been paid for the last two months as well as anything related to sever- ance for termination. In addition to that, we have found out that they had removed – or I was lied to and the investors were never added – several of the early investors as le- gal shareholders in the company. So not only am I out tens of thousands of dollars, so are many of my friends and family who believed in me back when we didn’t have anything other than an idea and a pitch deck. In the grand scheme of things, it’s a lot of personal money for my co-founder and I but little more than a round- ing error for them. But it’s been radio silence from them, other than getting my lawyer in Singapore to drop us. Given Bell Pottinger’s comfort level working withgovernmentswithse- rious human rights viola- tions, perhaps a complete disregard of employment rights is to be expected of one of the name partners out what possible reason they would not only take my company but do it in such a disrespectful and hostile manner. Now I’m lawyer who is strong and willing enough to take on a beast like Bell Pottinger. For those of you in My- anmar, Bell Pottinger is coming to the country to work with the largest conglomerate in Myan- “ Given Bell Pottinger’s comfort level working with governments with serious human rights violations, perhaps a complete disregard of employment rights is to be expected.” Techcrunch vltawmfrsm;rsm;uawmh ckwavmuRefrudk rSmjzpfaewJhpDrHcefYcGJrIysufae wm&JUtaMumif;tjynfhtpkHudk ar;jref;Muygw,f/'gayrJh uRefr awmh 'gudkvlodatmifxkwfrajym csifwJhtwGuf NidrfNyD;EIwfydwfae cJhwmyg/ 'gayrJh wpfzufuawmh tukefvkH;udk csKyfudkifNyD; twif; tusyfvkyfaqmifaewmjzpfyg w,f/ tckawmh olwdkYu xkwf jyefcsufwpfckxkwfNyD; uRefrudk z,fvdkufygNyD/ 'Dawmh uRefr taeeJY jywfjywfom;om;ajymzdkY vdkvmygjyD/ bmvdkYvJqdkawmh uTtwGuf uRefrtaMumif;udk olwdkYajymjyrSm rvdkvm;vdkYygyJ/ arv 9 &ufaeY uRefr[dkcsDrif; NrdKUawmfuaejyefvmcsdefrSmawmh u 'g½dkufwm bkwftzGJU[m uRefrudk owday; jcif;?ajz&Sif;jcif;rvkyfbJeJY CEO ae&muaejzKwfcsxm;w,f qdkwmudk odvkduf&ygw,f/ tJh'D twGufwpfem&DMumatmiftpnf;
  8. 8. June 19-25, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 8 on American sanctions list. What’s more scary is that Piers recently told me that they were pitching to jointly represent The Lady (Daw Aung San Suu Kyi) as well as one of the other a very likely presidential candidate. Given the bru- tal way they do business, I fear for this country if these leaders have com- panies that work like Bell Pottinger whispering in their ears. - I was warned over and over again to not trust business people in Viet- nam and yet here I am. Let’s start at the begin- ning. A year ago when I was launching MySQUAR a friend in Vietnam in- troduced me to Eric Schaer, the CEO of Ris- ing Dragon, an advisory group who was helping companies set up in My- anmar. Given how much this market was changing every day, it made sense for us to enlist the servic- es of Rising Dragon. The basic terms were that we would give Rising Dragon of equity in return for them getting us free of- HCMC as well as handling out legal incorporation in Myanmar, Singapore and Vietnam. The other piece here is that I would retain proxy voting rights for the shares. About a month later, we also started pay- ing Rising Dragon a hefty consulting fee, about 10 percent of our burn rate to be our acting CFO. In the ensuing eight months he has been “helping” us to raise money has been a travesty and now he’s even stolen the company. spaces and while I have proof that he was “work- ing on” the proxy voting docs, that never hap- pened either. As the CEO, this is of course my fault to stupidly trust him and I have learned some major lessons on keeping your house in order. Eric has leveraged all the relationships he got through his involvement with MySQUAR to create his own crony network and many of the MyS- QUAR shareholders are now also shareholders in Rising Dragon subsidiar- ies, not to mention that Eric is also a shareholder in many of their compa- nies. Since there’s been complete radio silence from all the sharehold- ers since this happened, I’m not sure who’s sleep- ing with whom and how deep it goes but the share- holder list is publicly ac- cessible in ACRA should anyone be interested. Any entrepreneurs who are fundraising in Asia, I highly recommend you research your possible in- vestors and talk to other entrepreneurs who have worked with them. As I mentioned previ- ously, conveniently, many of my friends and family who would most certainly have not voted against me are not in ACRA. I’m not sure why but there is most certainly a case here for deeper investigation especially given the paper trails I keep. So where does that leave me? I am on the hunt for my third lawyer now. I can for the compensation owed me or I can spend my time building some- thing new. With all the lessons and contacts I’ve already made, it will take me far less than a year to get to where MySQUAR is today. As an entrepreneur you learn very quickly to move on from “sunk costs” and to not let it col- our your decisions. From that angle, I’ve lost a year and some money, both of which I can deal with. My pride was also bruised and surrounded by amazing people who have reached out in an overwhelming show of support. And of course there is also the reputation thing. Let me reiterate this: there was absolutely no reason giv- en and frankly, no reason that they could have given for this move other than greed and a full on land grab. I don’t know exactly what’s next but rest as- sured you haven’t seen the last of me. I wasn’t named on Forbes’ Wom- en to Watch in Asia list for nothing. Thankfully I was raised in a society where you celebrate and embrace failure because this whole thing was full getting to a place where I can accept that and move forward. I hope that by sharing this story, I can help some others out there who may be facing similar issues. If nothing else, let this be a warning tale of trust. So my journey with MySQUAR largely comes to an end but my entre- preneurial journey is still in the beginning. For those of you who have reached out – thank you. I could not have made it through the past month without your love and support. For those of you learning about this for the shock but this is just the so many more good things to come out of Myanmar. Rita Nguyen is the founder of MySQUARE, published this post in her blog and it has been re- published here with her permission. The opinions and views expressed here are the author’s own and Myanmar Business To- day’s editorial opinion. “ Given the brutal way they do business, I fear for this country if these lead- ers have companies that work like Bell-Pottinger whis- pering in their ears.” Techcrunch Panel Deals Blow to Suu Kyi’s Chances of Becoming President N obel laureate Aung San Suu Kyi’s hopes of be- coming Myanmar’s president next year have been dealt a blow when a parliamen- tary committee voted not to change a constitutional clause that bars her from the post, two of the panel members said. The committee tasked with recommending amendments opted to retain the section that prevents anyone married to a foreigner or with children of foreign citizenship from becom- ing head of state. The two sources declined to why the proposal was rejected by 26 of the 31 panellists. Most experts believe the Aung Hla Tun clause, 59 (f), was written into the military-drafted 2008 con- Suu Kyi, who became a global - tary rule, most of it from house arrest. Her late husband was British, as are her two sons. - tee members voted in favour of amending the section at the closed door meeting of the com- mittee,” said a member who re- quested anonymity because the to be secret. Suu Kyi and her National League for Democracy (NLD) party have been pushing for constitutional change ahead of next year’s election, mainly to reduce the political clout of the military, which ruled Myanmar for 49 years until a nominally ci- vilian government led by retired The committee picked to as- sess amendments has only two NLD members on it and is comprised mainly of lawmak- ers from the ruling Union Soli- darity and Development Party (USDP), which was created from a social movement of a similar name set up by the for- mer junta. The USDP has 14 people on the panel and seven members - pointed as lawmakers as part of a 25 percent legislative quota allocated to the armed forces, a persecution by the former re- gime, wants to change. Myanmar lawmakers are as- sessing changes to the constitu- tion ahead of next year’s parlia- mentary election. A vote in the bicameral legis- lature to change the constitu- tion to allow Suu Kyi to become president is still possible, al- though political analysts say it is extremely unlikely it would be passed because the military and its USDP allies dominate parliament. Her party, however, said it was not over yet. “We can’t say Daw Aung San Suu Kyi has no chance of be- coming the president until the union parliament approves it,” said spokesman and senior par- “We need to wait till the com- - tions at the parliament.” Myanmar’s constitution was crafted by the former junta as the basis for the country’s grad- ual transition to democracy. The semi-civilian government has surprised the world with reforms that were unthinkable under direct army control and managed to convince Suu Kyi and the NLD to join parliament. Reuters ta0;xdkifaepOfrSmudkyJ olwdkY [m uRefr email ukdjzKwfcscJhNyD; awmhuRefrudkXmewGif;pepfawG udk jzKwfcscJhwJhtjyif wHcg;aomh awGudkyg ajymif;vdkufygw,f/ ydkqdk;wmu olwdkY[m uRefrvdkyJ today;? ajz&Sif;jcif;rvkyfbJeJU uRefr&JU uyg jzKwfcsvdkufwmyJjzpfygw,f/ oluvnf; ½kH;pDrHcefYcGJa&;rSL;xJ uwpfa,mufu olUudkbmawGjzpf ae w,fqdkwmukd ½kH;rSmac:ar; awmhrS od&wmyg/ aemufydkif;tywfawGuawmh ckeajymcJhovdkygyJ t&rf;pdwf'ku© a&mufcJh&NyD;awmh uRefrtaeeJU olwdkYtckvdk 'Djyóemudkaumif; rGefrGefajz&Sif;csifygw,fvdkY qdk vmwJhtcsdeftxd EIwfydwfaecJh wmyg/ 'gayrJh olwdkYu uRefr wdkYudk &efukefrSm&SdwJh uRefrwdkY tcef;uae xGuf&wJhtxdu vkyfaqmifcJhNyD; uRefrudkvnf; uRefr&JUwm0efysufuGufrIawG twGuf Ncdrf;ajcmufpmawG ydkYyg w,f/(wu,fawmh uRefr[m tJh'Dtcsdefuwnf;u bkwftzGJU uae xGufNyD;ygjyD)/ Edkb,fNidrf;csrf;a&;qk&Sif a':atmif qef;pkMunf or®wjzpfcGifhudk ydwfyif xm;onfh tajccHOya'yk'fr 59 p tm; jyifqifonfhOya'udk vTwfawmf u axmufcHrJ 5 rJ? uefYuGufrJ 26 rJ jzihf y,fcsvdkufaMumif; od&onf/ Myanmar Summary
  9. 9. June 19-25, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 9 Myanmar Summary A merican power so- lutions provider APR Energy an- nounced that the com- pany’s power generation plant in Myanmar is now fully operational. In February, APR clinched a contract to build a “fast-track” 100-megawatt power plant in upper Myanmar, - can company to sign a power generation agree- ment with the govern- ment since the lifting of sanctions in 2013. Based in Kyaukse, Man- dalay region, the plant provides the Myanmar Electric Power Enterprise (MEPE) with a guaran- teed minimum of 82MW of power and will enable the provision of electricity and power to more than six million people, APR Energy said in a state- ment. The contract, which is on a rental basis, is ex- pected to run through to late 2015. Clive Turton, manag- at APR Energy, said: “The commissioning of our thermal power generation plant, one of the largest in the country, is an im- establishing adequate re- liable power generation capacity in Myanmar. “We look forward to playing a continued role to help Myanmar supply - ably to its people and in- dustries.” Turton said Myanmar is a fast growing econo- my and the country, like many others in the region, needs reliable power in potential. The project represents another substantial in- vestment by a US com- pany in the infrastructure said it will “contribute to the economic and social progress of Myanmar by employing local people and supporting commu- nity development pro- grams.” Fuelled by natural gas from the Shwe Gas Pro- ject, the plant features 68 of the newest generation CAT low-emission mo- bile gas power modules Wai Linn Kyaw “one of the cleanest power generation solutions” in Myanmar, APR said. Penny Pritzker, US Sec- retary of Commerce, who was on a visit to Myanmar recently, said APR pro- viding power solutions in Myanmar is “critical,” particularly as 75 percent of the country’s popula- tion lacks access to elec- tricity. “The engagement of US businesses in Myanmar will help promote inclu- all of the country’s peo- ple,” she said. Turton, in an earlier in- terview with Myanmar Business Today, said the ministry to provide solu- tions for “further power needs” and have “more po- tential projects.” “We are very keen to develop our businesses in the market and we will be looking forward to mak- ing a lot of investments in this country in this par- ticular sector.” WaiLinnKyaw tar&dueftajcpdkufpGrf;tif ukrÜPDwpfckjzpfonfh APR vQyfppf"mwftm;ay;puf½Hkwpfck udkausmufqnfNrdKUwGif ZGefv 7 &ufaeYupwifzGifhvSpfí "mwf tm;ay;ydkYrIpwifcJhaMumif; od& onf/ tqdkyg"mwftm;ay;puf½Hkudk 2014ckESpf {NyDv 13 &ufaeYwGif pwifwnfaqmufjcif;jzpfNyD;wnf aqmufcsdefrSmoHk;vcefYMumjrifhcJh aMumif;od&onf/ ,if;"mwftm; ay;puf½HkudkvQyfppfpGrf;tm; 0ef BuD;Xmeu ukrÜPD xH18vvQyfppf"mwftm;yHhydk;ay; &efiSm;&rf;cJhjcif;jzpfNyD; vQyfppf "mwftm;vdktyfcsuftay:rlwnf í pmcsKyfxyfrHcsKyfqdk&efpDpOf oGm;rnf[kod&onf/tqdkygpDrH udef;wnfaqmufrIukefusp&dwf rSm usyfaiG 716 'or 449 oef;jzpfNyD; APR ukrÜPDodkY vQyfppfpGrf;tm;0efBuD;XmerS 18 vpmiSm;&rf;rItwGuf tar&d uefa':vm30'or545 oef; ay;&rnfjzpfum avmifpm axmuf yHhrItaejzifh wpfaeYvQif obm0"mwfaiGUukAay19 'or 5oef;yHhydk;ay;&aMumif;od&onf/ tqdkygpuf½HkwGifobm0"mwf aiGUtoHk;jyKonfhtif*sif 68 vHk; wyfqifxm;NyD;tqdkygtif*sif wpfvHk;pDrS vQyfppf"mwftm; 1 'or 4 r*¾g0yfxkwfvkyfEdkifrnf jzpfum pkpkaygif;vQyfppf"mwftm; 82 r*¾g0yfxkwfvkyfay;Edkifrnhft jyif t&efpufrsm;yg0ifygu 103 r*¾g0yftxdxkwfvkyfay;Edkif rnf[k vQyfppfpGrf;tm;0efBuD;Xm erStif*sifeD,mcsKyfOD;0if;jrifhu ajymcJhonf/,if;yrmPonfjref rmEdkifiHwpfEdkifiHvHk;&SdvQyfppf"mwf tm;xkwfvkyfrI av;&mcdkifEIef; &SdNyD; obm0"mwfaiGUrSvQyfppf "mwftm;xkwfvkyfEdkifrI 10 &m cdkifEIef;ausmf&Sdonf[kod& onf/ ausmufqnf"mwftm;ay;puf ½HkrSxGuf&Sdonfh"mwftm;rsm;t euf 15 &mcdkifEIef;udk ausmuf qnfpufrIZkeftwGufyHhydk;ay;oGm; rnfjzpfNyD;usef"mwftm;rsm;udk vQyfppf"mwftm;vdktyfcsuf&Sd onfhjrefrmEdkifiHtv,fydkif;a'o rsm;odkYydkYvTwfoGm;rnf[kod&onf/ APR taejzifhtem*wfumv wGifausmufqnf"mwftm;ay; puf½HkuJhodkYaompDrHudef;rsm;udk tpdk;&xHrSwif'gatmifjrifcJhygu 500r*¾g0yfrS 1000 r*¾g0yftxd xkwfvkyfEdkifonfh obm0"mwf aiGUoHk;"mwftm;ay;puf½Hkrsm;udk wnfaqmuf&efpDpOfoGm;rnf[k od&onf/
  10. 10. June 19-25, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 10 Myanmar Summary USCommerceSecretaryTouts “CloserTies”withMyanmar Penny Pritzker discusses economic engagement, announces first-ever Commercial Service Office in Yangon Wai Linn Kyaw T he US Department of Commerce Secretary Penny Pritzker trumpet- ed the United States’ commit- ment to closer economic and commercial ties with Myanmar during her recent visit to the Southeast Asian country. To promote new investment, Pritzker announced the open- - in Yangon, which will support American businesses to navi- gate and invest in Myanmar. Since the opening up of Myan- mar three years ago, the US has boosted its engagement with the country it once denounced and courted it in a bid to curb China’s overwhelming domi- nance in the country and the Southeast Asian region – Ba- rack Obama paid a visit in 2012, trade restrictions eased and sanctions were lifted, Derek US ambassador to the country since 1990 and last year Presi- dent U Thein Sein became the the White House in almost 50 years. “As President Obama said when he was here in 2012 – the this country – the United States values the friendship between our two nations and we want to contribute to your success,” said Pritzker. “We want to support your progress and reform.” She said since Obama’s visit Myanmar has made reforms that have helped improve busi- ness climate in the country. “Two years ago, the United States began allowing invest- years. Shortly thereafter, Presi- dent Thein Sein signed a law to help attract more foreign eco- nomic engagement. As a result, nearly $250 million in Ameri- can investment is now here,” she said. As of April 30, US companies have plans to invest $243.6 mil- lion in Myanmar’s economy, and US exports have increased from $9.8 million in 2010 to $145.7 million in 2013, the US Embassy in Yangon said in a statement. Pritzker said she was in Myan- mar to talk about how “we can build on the progress of the last two years to further strengthen our trade relationship and en- courage even stronger ties.” She said given “the promise of existing and future reform,” her department is opening a in Yangon. She said the Foreign Commer- - cated in US embassies around the world, help American com- panies enter overseas markets, - ers around the world. Pritzker said as Myanmar’s economy continues to grow and its market continues to open, more US companies are getting interested to do business in this country. “The US government is en- couraging American companies to evaluate the opportunity. Re- sponsible investment can help facilitate broad-based economic growth and economic prosper- ity for your people,” she said. Pritzker joined APR Energy to highlight the signing of a large- scale turnkey power, one of the - ments signed by a US company in recent years, and joined Ball Corporation to announce plans to build an aluminium can fac- tory outside Yangon. She said the US has a “funda- mental interest” in the continu- ation of reform. “We have communicated to your government the need to build on the progress that has been made by implementing measures that increase inclu- sive economic development, Reuters promote government transpar- ency and accountability, and safeguard labour rights and hu- man rights.” tar&dueftpdk;& rS tar&duefedkifiH jrefrm EdkifiHtay: pD;yGm;a&;ESihf ukefoG,frI qufqHa&;rsm; ydkrdkcdkifrmaprnhf uwdjyK pOftwGif;xkwfazmfajymMum;oGm;cJho nf/ &if;ESD;jr§KyfESHrItopfrsm;tm; azmf aqmif&eftwGuf rS jrefrm EdkifiHwGif tar&duefpD;yGm;a&;vkyfief; rsm; &if;ESD;jr§KyfESHvmEdkifap&ef axmufyHh ay;edkifrnhf yxrqkH;aom EdkifiHjcm;ukef oG,fa&;0efaqmifrI½kH;cef;tm; &efukef NrdKUwGif zGihfvSpfaMumif; aMunmcJhonf/ jrefrmedkifiHrS EdkifiHwumESihfqufqH a&;jyefvnfzGihfvSpfcJhonhfokH;ESpfumv twGif; tar&duefEdkifiHtaejzihf jrefrm edkifiHESihfqufqHa&;tm; jr§ihfwifcJhNyD; w½kwfEdkifiH ta&SUawmiftm&Sa'o tay: vTrf;rdk;vmrItm; [efYwm;Edkif&ef twGuf 2012 ckESpfwGif tar&duef or®wbm;&uftdkbm;rm;taejzihf jrefrmEdkifiHodkh tvnftywf vma&muf cJhNyD;aemuf jrefrmEdkifiHtay: pD;yGm;a&; ydwfqdkYrIrsm; ajzavsmhay;cJhonf/Derek Mitchell tm;1990jynhfESpfaemufydkif; yxrOD;qkH;aom tar&duefoHtrwf tjzpf cefYtyfcJhNyD; or®wOD;odef;pdef taejzihf tdrfjzLawmfodkY ESpfig;q,f twGif; yxrqkH;vma&mufvnfywf onhf jrefrmedkifiHor®wtjzpf ,refESpf u oGm;a&mufvnfywfcJhonf/ {NyDv 30 &ufaeYtxd tar&duef ukrÜPDrsm;taejzihfjrefrmhpD;yGm;a&;wGif tar&duefa':vm 243 'or 6 oef; &if;ESD;jr§KyfESH&ef pDpOfvsuf&Sdonf/
  11. 11. June 19-25, 2014 Myanmar Business Today mmbiztoday.com 11 Myanmar Summary Contd. P 12... Contd. P 12... LOCAL BIZ Myanmar’s Institutional Infrastructure Constraints and How to Fill the Gaps David DuByne and Hishamuddin Koh I nfrastructure both physical and institutional are the key drivers for rapid economic growth and development in any country. With the number of physical infrastructure pro- jects taking place in Myanmar involving roads, rail lines, mari- time ports, airports and inland waterways; rarely mentioned in the same breath is institutional infrastructure which encom- passes several other segments of society including human capital, legal instruments, ad- ministrative oversight, farmers last-mile logistics along with health and education facilities. Implementation of country- wide projects to speed Myan- mar’s overall development to date have been slow in part due economic and legal reforms plus the bottleneck of capital investors through the coun- try’s banking system. These are hurdles institutional investors experience, but little focus is paid on micro-level develop- ment throughout the rural sec- tor which comprises 70 percent of the country’s population of the movement of goods and services into and out of villages where local economies stagnate because of lack of options for transport, warehousing, pro- - etary transactions and crop yield boosting inputs. How can a parallel set of insti- tutional infrastructure designed in rural locations and what im- provements in livelihood will it provide upon completion, not only for local regions and farm- ing communities but the coun- try as a whole? Major impediments to doing business in Myanmar cited by a survey of foreign managers electric power, poor internet - rental rates. Considering that 70 percent of the country has zero access to grid delivered electricity in 2014, what other upgrades or issues might be ad- dressed to boost output of com- modities from remote locations onward to main trunk lines in order to economically stimulate pockets of rural populations or- ganically? A common example of insti- tutional infrastructure systems are the actual trucks that run collection routes through the countryside for farmer’s prod- ucts, not the actual roads. The only sales point available for farmers is the single company vehicle that comes to the vil- lage. The buyers at this juncture have monopoly pricing in a take it or leave it scenario to their advantage. If farmers say no to these of- fers, crops rot and there is zero value, if they say yes, the price is substantially below fair market price, literally pennies on the dollar. Farmers remain exploit- ed by those that can bring in trucks and access the products at the farm gates. The solution calls for a com- bination of several mechanisms to counter exploitation by trad- ers and middlemen. These mechanisms are: i) Presence of strong and dynamic farmers organisation capable of serving the multi-dimensional needs of rural farmers in pric- ing and value-adding; ii) Pres- ence of adequate warehousing, drying and processing facilities; iii) Presence of a solid network of rural roads with adequate connectivity to major roads, highways, waterways to move goods and services from and to the farm-gates to expedite transactions; iv) Transporta- tion facilities for moving farm- er’s products and inputs at least cost. v) Functional social servic- es e.g. clinics, schools, farmers’ educational training centres. All these factors are institu- tional infrastructure that com- pliment physical infrastructure thereby creating a complete set of usable infrastructure which will enable development of ru- ral Myanmar and the majority of its population. One aspect of institutional in- frastructure that merits atten- - ers’ organization which must meet the following 3A’s criteria in serving the multi-dimension- al needs of the farmers: Acces- sibility – to and from farmers; Availability – resources both - ity – reasonable price of inputs. In other words any infrastruc- ture must take into account the - tive and realistic. Farmers’ organisations are very important institutional in- struments that will drive rural development and create pro- ductivity along with income contribution in both rural and national development. First and foremost, multi-purpose farm- ers’ organisations that can pro- vide bargaining power for the farmers in sales transactions must top the list. This will pre- vent small farmers from being exploited by opportunist mid- dlemen/traders. In well-organ- ised and institutionalised farm- ers associations the farmers are constantly kept informed on prices of their produce/prod- ucts which allows them to react to market forces and obtain the best price based on daily spot rates. For example in Taiwan, which multipurpose farmers organisa- tions, even in the remotest loca- tions you see farmers with AM/ FM radios slung on tree branch- es listening to updated price quotes for farm produce sold onward to Taipei and abroad. Standardised pricing to farmers The Taiwan model of multi- purpose integrated farmer or- ganizations has been adopted in Malaysia and backed by the Farmers Organisation Act 1973 passed by the Malaysian Par- liament. This model works and could be rapidly administered in Myanmar if the Union Gov- ernment chooses to do so. Following quickly behind that in terms of implementation would be ways to create higher selling prices through value- add processing in the villages. Something as simple as port- able expeller presses to crush seeds and collect oil on site, or small rice milling machines to polish rice and sell on to whole- salers at a higher price point. reduced logistics costs by trans- porting only extracted oil, leav- ing the bulk weight of pressed oil cake which stays in the vil- lage to be used as animal feed. Currently most farming com- munities are unable to obtain necessary machineries to pro- cess and send out higher value goods in the supply chain. Con- sider machineries for process- ing higher value products itself as agriculture infrastructure. The trump card would be modern warehousing facilities along with training of locals in proper storage and handling techniques for their localised crops. If village Farmers Or- ganisations have modern ware- houses this will quickly would alleviate the “rush sale” “take it or leave it” sales model for their products. Goods could be stored for longer periods of time until the next buyer comes along and this in turn will send the monopolistic collection trucks back empty unless a fair price is paid. “ Implementation of countrywide projects to speed Myanmar’s overall development to date have been slow in part due to limited financing options, economic and legal reforms plus the bottleneck of capital inflows.” UAung/XinhuarnfonfhEdkifiHwGifrqdk ½kyf0wåKESifh toif;tzGJUqdkif&m tajccHtaqmuf ttHkrsm;onf pD;yGm;a&;zGHUNzdK;wdk;wufrI ESifh BuD;xGm;rItwGuf t"duarmif;ESif tm;rsm;jzpfonf/ jrefrmEdkifiHwGif vrf;? rD;&xm;vrf;? a&aMumif;qdyfurf;? av,mOfuGif;ESifh jynfwGif;oabFm qdyfurf;rsm;uJhodkU ½kyf0w¬Kydkif;qdkif&m tajccHtaqmufttHkpDrHudef;rsm; vkyfaqmifaeaomfvnf; aiG&if;? Oya' qdkif&m vdktyfcsuf? tkyfcsKyfa&;qdkif&m BuD;MuyfrI? v,form;tzGJUtpnf;? EdkifiHvkH;qdkif&maiGaMu;vkyfief;?ynma&; ESifh usef;rma&;qdkif&m taqmifttHk ponfh tjcm;aomvlrIvkyfief;ESifhquf EG,fonfh toif;tzGJUqdkif&m tajccH taqmufttHktay:wGif vkyfaqmif csufrsm;onfenf;yg;vsuf&Sdao;onf/ jrefrmEdkifiHEdkifiHvkH;qdkif&mwdk;wuf rIrsm;udk wdk;jr§ifhEdkifrnfh pDrHudef;rsm; jyKvkyfEdkif&eftwGufvnf; uefYowf xm;onfh b@ma&;qdkif&mtcuftcJ? pD;yGm;a&;? Oya'qdkif&m jyKjyifajymif;vJrI
  12. 12. June 19-25, 2014 Myanmar Business Today mmbiztoday.com LOCAL BIZ 12 Pricing mechanisms, market intelligence, united selling/bar- gaining policies with Farmers’ Organisations in place in ad- dition to multiple transporters involved in supply chain deliv- eries, is what we mean by insti- tutional infrastructure/frame- work. transporters can bring in ferti- lisers to boost agricultural out- put. In reality, if you can’t move people or crops you sure can’t move income and the economy stagnates. In both Taiwan and Malaysia when Farmers’ Organisations set collective uniform pricing communities, the countryside economy grew organically by it- self without national economic growth policies. Simply put, more money in farmer’s pock- ets meant more people spent more money locally, with posi- businesses. Repeating patterns This pattern will repeat itself in Myanmar when these simple institutional mechanisms are put in place. It may take time for the smallest of roads to be built or resurfaced by the Un- ion Government but the pattern will repeat as has already been observed across the Irrawaddy Delta in Township Develop- ment. As a success story from the Delta where villages receiving more money for their rice after starting their local rice entre- preneurs association created their own road building fund and re-paved 10km leading from the main Pathein Highway road, themselves. This in turn created a faster economic deliv- ery device to enter their villages with the result being a pocket of economic prosperity based on self-funded road access, which came from collective uniform pricing to buyers and rice mill- ers. A short cut to development is using business models that have worked over and over again during the past years of poverty alleviation case studies. There is no need to re-invent the wheel. Another example of institu- tional infrastructure would be training centres focused on ef- fective education programs for fertilizer and pesticide us- age. Regulatory approval for imported agriculture products into Myanmar should be prop- erly labelled for usage in the lo- cal language. Companies that follow these procedures should be granted fast track approval for products such as hybrid seed strains, fertilisers and training on seed selection and seed storage for higher yield the following year should be given priority approval. Even with a severe shortage of skilled labour, Myanmar’s farmers know how to work their indigenous land and with a few pointers they could turn the ta- bles from poverty to prosperity. When building Special Eco- nomic Zones (SEZ’s) serious consideration should be given the containers will come from and how and how the localised infrastructure be aligned to ex- pedite this movement within Myanmar. We have presented you with some thoughts on the problems and the solutions facing Myan- mar’s rural development. With the current governments dy- namic policies directed towards alleviation of rural poverty, enhancing rural productivity and boosting agrarian families’ income, the time is opportune for us to move in a direction to meet these challenges with re- alistic and practical approaches suggested in this paper. Hishamuddin Koh has 25 years of experience in agricul- ture and rural development and is Executive Chairman of Hisham Koh and Associates and the Myanmar Planta- tion Management & Advisory Co (MPMAC) along with My- anmar Food Technology. He can be reached at kohisham@ gmail.com. David DuByne is Myanmar Operations Director at One - ing on Myanmar’s agricultural export sector and acts as Chief Editor for Oilseedcrops.org. He can be reached at ddubyne@ oneglobalsourcing.com. “ Farmers’ organisations are very important institutional instruments that will drive rural development and cre- ate productivity along with income contribution in both rural and na- tional development.” SherpaHossainy and lower exporting costs would trigger changes at farm level, helping to raise agricultural productivity and change farm practic- es, including the choice of rice varieties, required to match the evolving de- mands of importers. jynfywifydkY&mwGif ukefusp&dwf rsm;udkavQmhcsoGm;&efaqmif&Guf &rnfjzpfNyD;,if;odkYaqmif&GufEdkif ygu aus;vufwGif t"duaexdkif onfh tajccHvlwef;pm;rsm; vlrIpD;yGm;b0rsm;udkjr§ifhwifoGm; EdkifaMumif; tqdkygtpD&ifcHpm wGif azmfjyxm;onf/ ]]qefpyg;jynfywifydkYrIu@ jr§ifhwifEdkifa&;taxmuftuljyK Edkifr,fh rl0g'awG&SdzkdYu ta&; BuD;wJhtwGuf jyKjyifajymif;vJrI awGvkyfzdkYvdkygw,f}}[k touf arG;0rf;ausmif;ESifhpm;eyf&du©mzlvHk a&;&efyHkaiGtzGJU &efyHkaiGñTef Mum;a&;rSL;rpöwmtif'½l;u&pf 0k'fu ajymonf/ jrefrmEdkifiHtpdk;&t"duOD;pm; ay;vkyfief;rsm;teuf v,f,m xkwfukefwdk;jr§ifhxkwfvkyfa&;ESihf qefpyg;jynfywifydkYrIjr§ifhwifEdkif a&;onf xdyfwef;rS yg0ifaeNyD; 2020 jynfhESpfwGif qefpyg;wef csdefav;oef;txdwdk;jr§ifhwifydkYEdkif &ef &nfrSef;aqmif&Gufvsuf&Sd aomfvnf; vGefcJhaomESpfrsm; twGif;trSefwu,fjynfywifydkY EdkifrIrSm 1 'or 3 wefcefYom &Sdonf/ vuf&SdjynfywifydkYrIonft&nf taoG;edrfh qefpyg;xkwfvkyfrI tay:tav;omvsuf&SdNyD;t"du tm;jzifhtmz&duwdkufESifhw½kwf EdkifiHrsm;odkY t"duwifydkYvsuf&Sd aMumif; tusKd;quftm;jzifh awmifolv,form;rsm;twGuf tusKd;tjrwftenf;i,fom&&Sd EdkifNyD; v,f,mpdkufysKd;a&;u@ wGifvdktyfonfh &if;EDS;jr§KyfESHrIrsm; a&muf&Sdvm&efrjzpfEdkifaMumif;? t&nftaoG;edrfhqefpyg;rsm;udk jynfyaps;uGufwGifaps;uGuf0,f vdktm;enf;vmjcif;uvnf;tajc taeudk ydkrdkqdk;&Gm;EdkifaMumif; tpD&ifcHpmwGif azmfjyxm;onf/ ]]vuf&Sdtcsdef[m jrefrmEdkifiH tpdk;&taeeJY qefpyg;jynfywifydkY rIudk wdk;vmapzdkY tcGifhtvrf; awGtoHk;csNyD; tajccHvlwef;pm; awGjzpfwJh awmifolv,form; awG&JU0ifaiGwdk;wufaumif;rGef vmatmif aqmif&GufzkYd tcsdef aumif;jzpfygw,f}}[k urÇmhbPf jrefrmEdkifiHqdkif&mXmaeudk,fpm; vS,frpöwmcefoef&Sefumu ajym onf/ vmrnhf 20 rS 15 ESpfwmumv twGif; jrefrmEdkifiHonf txl; ojzifh Oa&myESifhtm&SEdkifiHaps; uGufrsm;odkY wdk;csJUwifydkYEdkifonfh tvm;tvmaumif;rsm;&SdaeNyD; 0ifaiGwdk;wuf&SmazGEdkifrnfjzpf aMumif; tpD&ifcHpmu azmfjyxm; onf/ qefpyg;BudwfcGJonfhvkyfief; wGif EdkifiHjcm;wdkuf½dkuf&if;ESD;jr§KyfESH rIrsm;udk zdwfac:jcif;onf qef pyg;jynfywifydkY&mwGif t&nf taoG;ydkif;qdkif&mESifhtwl ta& twGufydkif;yg wdk;wufEkdifonfh ta&;BuD;onfhajcvSrf;wpf&yfjzpf aMumif; tpD&ifcHpmwGif azmfjy xm;onf/ ESifh EdkifiHbPfpepfrSwpfqifh toif; tzGJUqdkif&m EdkifiHjcm;&if;ESD;jr§KyfESHolrsm; aiG&if;rsm;onf MuefYMumvsuf&SdNyD; vkyfief;pOfrsm;onf aES;auG;vsuf&Sd aMumif;awGU&onf/toif;tzGJUqdkif&m &if;ESD;jr§KyfESHolrsm;wGif tcuftcJtawGU tBuHKrsm;pGm&Sdaomfvnf; tenf;pku om EdkifiHvlOD;a& oef; 60 70 &mcdkifEIef;jzpfonfhaus;vufu@twGuf a'oqdkif&mtqifhzGHUNzdK;a&;rsm;tm; tm&kHpdkufMuonf/vrf;yef;qufoG,f a&;? odkavSmifa&;? pDrHa&;? tao;pm; aiGaMu;? aiGvTJajymif;rIESifh oD;ESHpdkufysKd; a&;qdkif&mypönf;rsm; vdktyfrIwdkYu aus;&Gmrsm;wGif ukefypönf;rsm; 0ifxGuf vnfywfrItm; aESmifhaES;apum jynf wGif;pD;yGm;a&;tm; aES;auG;apvsuf&Sd onf/ jreffrmEdkifiHwGif pD;yGm;a&;vkyfaqmif &eftwGufvdktyfonfrsm;udkEdkifiHjcm; om;refae*smrsm;uavhvmrIjyKvkyf xm;csuft&vSsyfppf"gwftm;rvkH avmufrI?tifwmeuf0efaqmifrInHhzsif; rI? rjzpfEdkifonfh ½kH;cef;iSm;&rf;cjrifhrm; rIwdkYjzpfonf/2014ckESpfwGiftqdkygrD; r&&SdonfhEdkifiH70&mcdkifEIef;tm;vQyf ppfrD;jzefYjzL;Edkifonf qdkMuygpkdY/ tqdkyg aus;vufaejynfolrsm;tm; pD;yGm;a&; t& zGHUNzdK;apEdkifrnfh rnfodkYaomwdk;wuf rIrsm;tm; aqmif&GufEdkifygoenf;/ SoeZeyaTun/Reuters
  13. 13. June 19-25, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 13 Myanmar Summary Contd. P 15... Contd. P 15... Trinna Leong M alaysia has spent a total of 27.6 million ringgit ($8.6 million) so far on the search for the missing Malaysia Airlines Flight MH370, authorities said, - - lion ringgit was only the sum spent by Malaysian agencies, we do not know how much other countries spent,” Department of Civil Aviation chief Azharuddin Abdul Rahman told a news conference, saying he was unsure of the cost break- down. The search for MH370, which disappeared carry- ing 239 passengers and crew on March 8, is al- ready set to be the most costly in aviation history and spending will rise expands to a wider swathe Australia. Experts have suggested the cost of searching for the missing jetliner could reach hun- dreds of millions of dol- lars. The search has been dealt setbacks, most re- cently when Australian that wreckage from the aircraft was not on the seabed in the area they acoustic pings thought to be from the plane’s black box recorders. Asked where the new search area would be, Azharuddin said he did not know but that it “will not be very far away from where the search is now”. “The Australian and Ma- laysian investigators have done their analysis and are in the process of exchang- ing notes with Inmarsat,” he said, referring to the analysis of signals from the plane is the basis for the current search area. A Wall Street Journal re- port on June 8 cited sourc- es as saying investigators were revising some of their basic assumptions about the plane’s last position. The search area has al- ready been extended to a 60,000 sq km (23,000 sq mile) zone that is be- ing surveyed by a Chi- nese vessel. It will then be searched by a commercial operator in a mission ex- pected to start in August and take up to a year, at a cost of A$60 million ($55 million) or more. search operations to bids - sia’s deputy defence min- ister, Abdul Rahim Bakri, said those costs would be shared equally by Malay- sia and Australia. Reuters Myanmar Summary Thai Billionaire’s True Corp Khettiya Jittapong S tate-owned China Mobile Ltd has agreed to buy an 18 percent stake in Thai telecoms group True Corp for major corporate deal since the military coup last month. True Corp, backed by billion- aire Dhanin Chearavanont’s Charoen Pokphand Group, said it was raising $2 billion through a rights share issue to boost its the fund raising, True Corp will sell 4.4 billion shares to China Mobile, the world’s biggest car- rier by subscribers, at 6.45 baht each, a 13.4 percent discount to True’s last traded price. The deal is part of the Thai group’s long-term plan to se- cure a foreign partner and un- derscores Dhanin’s strong po- litical connections in mainland China, sources familiar with the matter said. In 2013 Dhanin’s CP Group emerged as a surprise buyer for global bank HSBC Plc’s $9.4 billion stake in Ping An Insur- ance Group Co of China Ltd. - national to invest in China’s agri-business in 1979 and it was tasked with helping to modern- ise China’s farm sector. It also operates Lotus super markets in Shanghai, according to the company’s website. “Through the proposed stra- tegic investment in True Corp, China Mobile is expected to access new customers, interna- tional business opportunities and new earnings growth driv- - cance to the telecom business of the company,” China Mobile’s chief executive Li Yue said in a statement. The proposed deal comes less than three weeks since the military seized power in Thailand. The two companies made no mention of the coup or preceding political crisis, which weighed on corporate dealmaking. New mergers and acquisitions in the country have slumped by 72 percent by value from a year ago to $648 mil- lion by end May, according to Thomson Reuters data. Reuters Bloomberg w½kwftpdk;&ydkif taejzihf xdkif;qufoG,fa&;ukrÜPD True Corp &S,f,m 18 &mcdkifEIef; tm; tar&duefa':vm 881 oef; jzihf 0,f,l&ef oabmwlnDvdkufonhf twGuf ppfwyfrS tmPmodrf;NyD;aemuf xdkif;EdkifiHyxrqkH;aomt"duyl;aygif; aqmif&Gufa&;qdkif&m oabmwlnDrI jzpfvmNyDjzpfonf/bDvsHem rav;&Sm;avaMumif;vdkif;tae jzifh pkpkaygif;&if;*pf 27 'or 6 oef;(tar&duefa':vm 8 'or 6 oef;) tm; rav;&Sm;av aMumif;vdkif; MH370 &SmazGrI twGuf okH;pGJNyD;jzpfaMumif; tpdk;& tmPmydkifrsm;rS yxrqkH;tBudrf tjzpf ukefusp&dwftm; xkwfazmf ajymMum;vdkufonf/ c&D;onf 239 OD; wifaqmif vmum rwfv 8 &ufaeUwGif aysmufqkH;cJhonfh MH370 onf avaMumif;ordkif;wGif ukefus p&dwftrsm;qkH;tjzpf pHcsdefwifcJh jyDjzpfNyD; tdEd´,ork'´&m Mop aMw;vstxd wdk;csJU&SmazGonfh twGuf ukefusp&dwfjrifhrm;vm jcif;jzpfonf/ ynm&Sifrsm;rS aysmufqkH;aeonfh*sufav,mOf tm;&SmazGrIonf a':vmoef;&m aygif;rsm;pGm ukefusEdkifaMumif; tBuHjyKxm;onf/ MopaMw;vstmPmydkifrsm;rSt qdkygav,mOftydkif;tprsm;onf jyifwGifr&Sd[ktqdkygav,mOf black box rStcsuftvufrsm; t&od&onf/
  14. 14. June 19-25, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 14 Myanmar Summary ChinaSaysVietnam,Philippines’ MinglingonDisputedIsleA‘Farce’ Ben Blanchard C hina denounced Vietnam and the Philippines for getting together on a dis- puted island in the South China Sea to play soccer and volley- ball, calling it “a clumsy farce” and demanded both countries stop causing trouble. The comments by a foreign ministry spokeswoman were - ering on the Vietnamese-held is- land of Southwest Cay on June 8. - scribed the meeting of soldiers from the two sides as a chance to show there can be harmony despite a web of overlapping claims to the potentially ener- gy-rich waters. “Don’t you think this small move together by Vietnam and the Philippines is at most a clumsy farce?” China’s Foreign Ministry spokeswoman Hua “China has irrefutable sover- eignty over the Spratly Islands and the seas nearby,” she said. “We demand that Vietnam and the Philippines stop any be- haviour that picks quarrels and causes trouble ... and not do an- ything to complicate or magnify the dispute.” The gathering underscores the growing cooperation between Vietnam and the Philippines, which have both felt China’s wrath over the South China Sea, even though both claim South- west Cay and other islands. The Philippines, Malaysia and Brunei all claim some of the Spratlys, while China, Taiwan and Vietnam claim the whole chain. China also claims 90 percent of the 3.5 million sq km (1.35 million sq mile) South China Sea, its reach depicted on its maps with a so-called nine- dash line deep into the mari- time heart of Southeast Asia. Diplomats and experts have described the partnership be- tween Hanoi and Manila as part of a web of evolving rela- tionships across Asia that are being driven by fear of China as well as doubts among some, especially in Japan, over the US commitment to the region. Separately, China accused Vietnam of ramming its ships more than 1,000 times in a part of the sea and said while it wanted good relations with its neighbour, it would not aban- don principles to achieve that. sank on May 26 during a con- frontation not far from where China has towed an oil rig, accompanied by a cordon of Chinese vessels, 240 km (150 Last week, Vietnam television broadcast video showed a large Chinese vessel steaming after then colliding with one which capsized. The dispute is the most seri- ous deterioration of relations between the Communist states and traditional rivals since a brief war in 1979 following Viet- nam’s invasion of Cambodia. Reuters Philippine Senate Passes Bill Liberalising Banking Sector Siegfrid Alegado T he Philippine senate has approved a bill that will open the country’s re- stricted banking sector to more The passage paves the way for a change in the law ahead of a goal for economic integration of the Association of Southeast Asian Nations bloc of countries in 2015. It amends a 20-year old foreign banking act, permitting foreign ownership of domestic banks to rise to 100 percent from 60 per- cent, a statement posted on the senate’s website said. Current limits to the number of foreign banks operating in the country will be eliminated, it said. The existing Republic Act 7721, which liberalised the entry of foreign lenders in 1994, al- lowed the entry of only up to 10 banks fully-owned by foreigners to operate in the country. The bill provides for the en- try of “established, reputable banks” in the country and also grants Philippine incorporated subsidiaries of foreign banks same banking privileges as homegrown lenders. A counterpart bill was ap- proved in the lower chamber of congress last month. The two bills will need to be reconciled in a bicameral conference commit- tee before it is sent to President Benigno Aquino for his approval. “Greater foreign participa- - cial sectors is expected to aug- which the Philippine economy may have access,” Senator Ser- gio Osmeña III, who heads the senate banks committee, said in the statement. He said the bill’s passage would allow the country to “take advantage of economic in- tegration of the ASEAN region.” Reuters India Likely to Raise Foreign Investment Limit in Gov’t Debt Soon Himank Sharma, Rajesh Kumar Singh & Suvashree Dey Choudhury I ndia will likely raise the foreign investment limit in government debt soon, as almost all the allocation has al- ready been taken up as overseas buyers pile into the country’s - the government’s thinking. The current cap is 995.46 bil- lion rupees ($16.86 billion). As of June 6, foreign inves- tors owned 886 billion rupees worth of government debt, or 89 percent of the full available allocation, following a surge in - about Narendra Modi’s recent election as prime minister. Once the limit reaches 90 per- cent, foreign investors are only allowed to buy debt under a more cumbersome auction bid- ding system. One of the sources said the gov- ernment could raise the amount foreign investors are allowed to buy by another $5 billion. - cide on the matter after consul- tations with the Reserve Bank of India and capital markets regu- lator Securities And Exchange Board of India, the sources said. “I expect the government to take a call on this soon,” said the process. The sources de- were not authorised to talk to the media about the plans. Foreign investors bought a net $425.43 million worth of debt on June 6, their biggest daily purchase since May 23 and bringing their total this year to $8.6 billion. Under current rules, India al- lows all types of foreign inves- tors to buy up to $20 billion of government debt, although the dollar amount depends on the exchange rate. The total foreign investment limit for foreign investors is $30 billion, with the remaining $10 billion for investors such as foreign central banks, sovereign wealth funds, insurance funds and pension funds. Investors have been expecting the government would raise the allocation for foreign investors once the 90 percent mark was reached. The country last raised the amount of government debt that foreign investors can buy by $5 billion in June last year. Reuters Myanmar Summary Myanmar Summary JulianAbramWainwright/Bloomberg Reuters w½kwfEdkifiHtaejzihf awmifw½kwf yifv,fjyif&Sd tjiif;yGm;aeonhf uRef;ay wGif abmvkH;upm;jcif;ESifh abmfvDabm upm;&ef pka0;aeonhf AD,uferfESihf zdvpfydkifvlrsKd;rsm;tm; rsufESmajymif wdkufrI[k ac:qdkvdkufNyD; tqdkygEdkifiH ESpfcktm; jyóemzefwD;aejcif;rS &yfwefY &ef awmif;qdkvdkufonf/ w½kwfEdkifiHjcm;a&;ajyma&;qdkcGihf&Sdol trsKd;orD;a0zefrIrsm;onf AD,uferf rS xdef;odrf;xm;onhf taemufawmif uRef;wGif ZGefv 8 &ufaeY pka0;rI twGuf w½kwfEdkifiH yxrqkH;wHkYjyef rIjzpfonf/ zdvpfydkifa&wyft&m&Sdrsm;rS tqdkyg uRef;wGif ESpfbufppfom;rsm;awGUqkHjcif; onf pGrf;tif<u,f0onhf tqdkyga&ydkif euftwGuf EdkifiHESpfck o[ZmwjzpfrI tm; jyoEdkifonhf tcGihfta&;wpf&yf tjzpf azmfjyMuonf/ tdE´d,EdkifiHtaejzihf EdkifiHjcm;0,f,l olrsm;taejzihf EdkifiHaiGaMu;aps;uGuf odkY 0ifa&mufae&m,lvmonhftwGuf tpdk;& ta<u;rsm;wGif EdkifiHjcm;&if;ESD; jr§KyfESHrIowfrSwfcsuftm;jr§ihfwifEdkifzG,f &SdaMumif; tpdk;&ESihfeD;pyfonhf t&m&Sd av;OD;ajymMum;csuft& od&onf/ tpdk;&taejzihf vuf&SdwGif ½lyD; 995 'or 46 bDvD,H (tar&duefa':vm 16 'or 86 bDvD,H) &Sdaejcif;jzpf onf/ZGefv 6 &ufrSpwifum EdkifiHjcm; &if;ESD;jr§KyfESHolrsm;taejzihf tpdk;& ta<u;½lyD; 886 bDvD,Htm; ydkifqdkif rnfjzpfNyD; 89 &mcdkifESkef;tm; tjynfht0 cGJa0Edkifrnfjzpfonf/ zdvpfydkifvTwfawmftaejzifh EdkifiH uefYowfxm;onfh bPfvkyfief;u@ tm; EdkifiHjcm;aiGaMu;tzGJUtpnf;rsm;ydkrdk vkyfudkifEdkifrnfh Oya'Murf;wpf&yftm; twnfjyKcJhaMumif;? tqdkygvrf;aMumif; onftmqD,HEdkifiHrsm; 2015wGif p wifvkyfaqmifawmhrnfh pD;yGm;a&;todkuf t0ef;twGufvkyfaqmifcsufwpfckvnf; jzpfonf/zdvpfydkifEdkifiHtaejzifhouf wrf;tm;jzifhtESpf20&SdNyDjzpfonfhbPf Oya'tm;jyifqifcJhNyD;jynfwGif;bPf rsm;tm;EdkifiHjcm;om;ydkifqdkifrIrsm;udk 60 rS 100 &mcdkifEIef;txd wkd;jr§ifhay;cJh onf/
  15. 15. June 19-25, 2014 Myanmar Business Today mmbiztoday.com REGIONAL BIZ 15 Myanmar Summary Resume Commercial Whale Hunt Wai Linn Kyaw J apan’s prime minister told parliament he would boost - ing commercial whaling, de- spite a top UN court’s order that Tokyo must stop killing whales in the Antarctic. Shinzo Abe’s comments put with anti-whaling groups, who had hoped the ruling by the International Court of Justice (ICJ) would herald the begin- ning of the end for the mammal hunt. “I want to aim for the resump- tion of commercial whaling by conducting whaling research in indispensable for the manage- ment of whale resources,” Abe told a parliamentary commis- sion, AFP reports. “To that end, I will step up - standing from the international community,” he was quoted as saying. Abe said that in contrast to the foreign perception that whaling communities merci- lessly exploit the giant mam- mals, whaling towns appreciate the meat and show respect to the creatures with religious ser- vices at the end of every hunting season. “It it regrettable that this part of Japanese culture is not un- derstood,” Abe said. Japan has hunted whales un- der a loophole in the 1986 glob- al moratorium, which allows le- thal research on the mammals, but it has made no secret of the fact that their meat ends up in - kets. The annual hunt in the South- ern Ocean has proved particular- ly controversial, with sometimes violent confrontations between whalers and protestors. Australia, backed by New Zealand, hauled Japan before the ICJ in 2010 in a bid to stop the yearly campaign. The court slammed the hunt, which it said was a commercial venture mas- querading as research. Antarctic season, and said it would redesign the mission in a separate hunt in the northwest in coastal waters which are not covered by the moratorium. Since the ICJ ruling, Japanese e-commerce marketplace Ra- kuten has told online retailers they cannot sell whale and dol- phin meat through its site. But dealing in whale meat “does not violate international or domestic laws in any way”, said Agriculture, Forestry and Fisheries Minister Yoshimasa Hayashi, according to AFP. Hayashi told the same par- liamentary committee that Ra- kuten had made a commercial decision as a private company, but that the increasing number of companies that are refusing to sell whale meat is “regretta- ble”. Inviting people to dine on whale in his ministry, he said a “whale week” campaign, which began on June 9, was part of know that whaling and eating whale meat are part of their cul- ture. Whales were once a key source of fuel and food, but Japan’s consumption of the meat has considerably diminished in re- cent decades and it is no longer a regular part of most people’s diet. However, powerful lobbying forces have ensured the contin- ued subsidisation of the hunt with taxpayer money. Tokyo has always maintained it was trying to prove whale populations were big enough to sustain commercial hunts. AFP “The deal is unusual given the country is having a political situation like this,” said Min- tra Ratayapas, an analyst at KK Trade Securities, “Some foreign investors voice concerns about the situation in Thailand. But for True, it seems the company thanks to strong connections with Dhanin.” True has been grappling with rising debt as it invests in the expansion of its network to compete with market leader Advanced Info Service and sec- ond-ranked Total Access Com- munication. True is the only Thai mobile company without a foreign partner and the new invest- ment is expected to help with its planned regional expansion, a source with knowledge of the deal said. Like True, China Mobile has been struggling in its home market, reporting in April its years as it invests heavily to catch up with rivals in providing 4G mobile broadband services. China Mobile, which had $69.4 billion in cash and short- term investments at the end of 2013, also faces challengers in the shape of newly-licensed mo- bile virtual network operators, who lease capacity from the net- work operators like China Mo- bile and sell their own packages to subscribers. If successful, the Thai deal transaction outside of China, Hong Kong and Taiwan in sev- en years, according to Thomson Reuters data. Thailand’s True Corp is get- ting the better end of its deal with China Mobile, Reuters Brekingviews columnists Una Galani and Ethan Bilby wrote. “True reduces its crippling debt and gains a cash-rich partner to support its aggressive growth. For China Mobile, the minority stake looks a pricey way to push overseas,” they said. Reuters Group rSyHhydk;xm;onf True Corp rS &eftwGuf&S,f,mtcGihfta&;rSwpfqihf tar&duefa':vm ESpfbDvD,Hjr§ihfwif oGm;rnfjzpfaMumif; ajymMum;cJhonf/ &efykHaiGjrSihfwifa&; wpfpdwfwpfydkif; tjzpf True Corp taejzihf tar&d uefa':vm 4 'or 4 bDvD,H &S,f,m rsm;tm; urÇmhokH;pGJolOD;a&trsm;qkH;&Sd onhf odkY True aemufqkH;a&mif;cscJhonhfaps;EIef;atmuf 13 'or 4 &mcdkifEIef; avsmhenf;onhf wpfckvQif 6 'or 45 bwfjzihfa&mif;cs oGm;rnfjzpfaMumif; od&onf/ w&m;½kH;rS wdkusKdtm; tEÅmwduwGif a0vig;rsm;owfjzwfaejcif;tm;&yfwefY &ef trdeYfxkwfxm;aomfvnf; pD;yGm;jzpf a0vig;zrf;jcif;vkyfief;rsm;jyefvnf pwifEdkif&ef tpGrf;ukefBudK;yrf;oGm;rnf jzpfaMumif; vTwfawmfwGif ajymMum; cJhonf/ &SifZdktmab; tqdkygajymMum;csuf ofJustice(ICJ) wGif EdkYwdkufowå0grsm; zrf;qD;rI tqkH;owfEdkif&ef BudK;yrf;ae onhf a0vig;zrf;qD;rIqeYfusifa&;tzGJU rsm;ESihf xdyfwdkufawGUaprnfjzpfonf/ ]]rdrdtaejzihfa0vig;t&if;tjrpfrsm; pDrHEdkif&ef vdktyfonhf odyÜHenf;us tcsuftvufrsm;&,l&eftwGuf pD;yGm; jzpf a0vig;zrf;qD;jcif;tm; jyefvnf pwif&ef &nf&G,fxm;onf}}[k tmab; u ygvDrefqdkif&maumfr&SifwGif ajym Mum;xm;aMumif; AFP owif;rsm;t& od&onf/ Pact to Halt Forced Labour Snubbed by Thailand Stephanie Nebehay P erpetrators of forced la- - lion people globally, will be punished in most countries under a UN treaty clinched last week, despite being snubbed by Thailand and nearly all Gulf countries. More than half of the estimated 21 million caught up in forced or compulsory labour are women and girls and the practice reaps an estimated $150 billion in il- domestic services and the sex in- dustry, among others, the Inter- national Labour Organisation, a United Nations agency, said. The new treaty, a protocol to the ILO’s Forced Labour Con- vention of 1930, aims to halt the practice by requiring countries ratifying it to identify and release victims, ensure them access to compensation and punish perpe- trators, it said. “It is a strong indication of the global community’s commitment - ination of forced labour,” David Garner, president of the annual International Labour Confer- ence’s committee on forced la- Thailand’s new military gov- ernment was the only govern- ment to vote against the treaty at ILO’s annual ministerial confer- But Bahrain, Brunei, Iran, Ku- wait, Omar, Qatar, Saudi Arabia and Yemen were among those abstaining, they said. The Mid- dle East is home to an estimated 600,000 people deemed to be forced labourers, Beate Andrees, head of the ILO special action programme to combat forced la- bour, told Reuters. Garner said forced labour, which includes slavery but also deceptive recruitment practices, “It’s very large-scale, much of it very well organised and so- criminal elements are involved in it as well.” Reuters urÇmwpf0Srf;&Sd vl 21 oef;tay:wGif usa&mufvsuf&Sdonfht"r®tvkyfcdkif;ap rIrsm;tm; ,ciftywfwGif twnfjyK cJhonfh UN aMunmpmwrf;udk xdkif; EdkifiHESifhyifv,fauGUEdkifiHtrsm;pkrS vufrcHaomfvnf; EdkifiHtrsm;pkwGif tjypfay;awmhrnfjzpfaMumif; od&onf/ aMunmpmwrf;topfonf ILO 1930 t"r®cdkif;aprI aMunmpmwrf; wGifyg0ifonfhEdkifiHrsm;wGif t"r®cdkif;ap rIrsm;tm; &yfwefY&efESifh cdkif;apcH&ol avsmfaMu;ay;&efESifhusL;vGefolrsm;tm; tjypfay;&efwdkYyg0ifaMumif; od&onf/ Myanmar Summary
  16. 16. June 19-25, 2014 Myanmar Business Today mmbiztoday.com INTERNATIONAL BIZ 16 N othing about the narrow cream- colored lobby at 160 Aldersgate Street in - cial district gives a hint of its role at the centre of the That’s because the building is occupied by at least, it is also home to Rowan Companies, one of the largest operators of drilling rigs in the world. In 2012, Rowan, which has a market value of $4 billion, shifted its legal and tax base from the United States to Britain. But not much else. “We changed our corpo- rate structure and we’re legally domiciled in the UK but our headquarters and our management team remain in the US,” Suzanne Spera, Rowan’s Investor Relations Direc- tor said in a telephone in- terview from Houston. “It has been positive. We take advantage of try- ing to be competitive with say the shift helped cut tax rate to 3.3 percent in 2013 from 34.6 percent in 2008. Spera said Rowan complies with all UK tax rules. A government spokes- woman for the Treasury said recent changes to the tax rules were aimed at supporting “genuine busi- ness investment”. “The UK is not a tax hav- en. In 2015, our main rate of corporation tax will be 20 percent, well above the levels seen in tax havens,” she said in an emailed statement. In the last year around a dozen major U.S. com- panies including media group Liberty Global, ba- nana group Chiquita and - veiled plans to shift their tax bases overseas outside the United States. Historically, when U.S. companies wanted to cut their tax bill they usually reincorporated in Carib- bean Islands or Switzer- land. However, following re- cent legal changes where- by Britain largely stopped seeking to tax corporate Tom Bergint countries, including tax havens, companies are increasingly choosing the UK as a corporate base. President Barack Oba- ma and Congressional Democrats have proposed of so-called “inversions”, although Congressional gridlock on tax reform means new barriers to overseas moves are un- likely anytime soon. of companies which have moved their tax base to Britain but government lawyers said at least seven had re-based to London – Aon Plc, CNH Global NV, Delphi Automotive Plc, Ensco Plc, Liberty Global Plc, Noble Corp Plc. Omnicom had planned to transfer their tax domicile to Britain, while retain- ing US headquarters, but the takeover deals which were meant to facilitate this recently failed. other company state- ments from the seven that relocated showed that while redomiciling to London can cut a com- pany’s tax bill, it usually involves relocating just a handful of senior execu- tives – and sometimes not even that many. “The UK has made a very clear policy decision to engage in tax competi- tion for multinationals. It’s fair to say it’s rivalling Ireland,” said Stephen Shay Professor of Law at Harvard University who - sional investigations into corporate tax reform. “When I go to tax con- ferences now, I hear peo- ple talk about the UK as a tax haven.” Bernhard Gilbey, tax Squires Sanders said tax competition was common across countries and that companies were within the law and indeed faced competitive pressure to structure themselves in response to such govern- mental incentives. The companies said that while tax was a considera- tion in their moves, com- mercial reasons such as the desire to be closer to customers was also a fac- tor. George Osborne has wel- comed the trend of US companies such as insur- ance group Aon redomi- ciling to Britain, saying it - ment has made the coun- try a more attractive place to do business. In November, Ernst & Young, one of a number of tax advisors which ad- vocated the tax changes that made Britain a mag- net for US corporations, published a survey say- ing that 60 multinational companies were eyeing a move to the UK. EY said this could create over 5,000 jobs and bring in over 1 billion pounds a year in additional corpo- ration tax, the UK’s cor- porate income tax. Accounts for the com- to the UK exchequer from the corporate relocations. Aon and Liberty Global – the only two companies for group UK tax pay- ments – reported UK cor- poration tax credits for 2013. Ensco had a UK tax charge of $200,000 last year. That included tax on - ating subsidiaries which have revenues of around $300 million a year. Delphi Automotive’s most senior UK corpo- rate entity is a partner- ship, which does not have to pay tax. The company declined to say if other British units paid any cor- poration tax but said in its annual report that it had UK tax assets which could CNH does not pub- lish UK tax payments. Its main UK operating unit reported a tax credit in 2012, the last period for which accounts were available. What attracts compa- nies like Rowan to Britain is not a headline tax rate that is half the US level but the way the UK has companies’ overseas sub- sidiaries. The government intro- duced the measures in the 2012 budget to “better - nesses operate in a global economy” and encourage investment in Britain. This means companies the countries where their employees and custom- ers are based, into tax ha- vens, and then bring the money back to Britain and pay it out to shareholders without paying any tax – something that would not be possible under US or German tax law. the UK can literally be a nil tax jurisdiction, which obviously compares very well with traditional tax havens,” Kevin Phillips, International Tax Part- ner, Baker Tilly said. The UK is also unusual in not charging withhold- ing tax on dividend pay- ments and, for now at - spectability. “Over the last couple of years, companies that have used jurisdictions like Ireland, the Nether- lands or Luxemburg have found themselves at the wrong end of some poor publicity for their attitude to tax,” said Gilbey. “It looks less likely that that would be the case if they put themselves in the UK because we’re not generally considered a tax haven.” Reuters Myanmar Summary BritainBecomesHavenforUsCompaniesKeentoCutTaxBillsJasonAlden/Bloomberg “ Over the last couple of years, companies that have used jurisdic- tions like Ireland, the Netherlands or Luxemburg have found them- selves at the wrong end of some poor publicity for their attitude to tax. It looks less likely that that would be the case if they put themselves in the UK because we’re not generally considered a tax haven.” vef'efNrdKU b@ma&;qdkif&m tcsuftcsmae&mjzpfonhf trSwf 160 Aldersgate vrf;onf vGefa&eHvkyfief;wGif tcsuftcsm usrItm; oJvGefpay;Edkifrnf r[kwfay/ xdkodkYjzpf&jcif;rSm tqdkyg taqmufttkHtaejzihf Oya' tusKd;aqmifwpfck 0ifa&muf odrf;ydkufrItm; cH&onhftwGuf aMumihfjzpfonf/ pm&Gufay:wGif omjzpfaomfjim;vnf; tqdkyg taqmufttkHrSm urÇmhtBuD; qkH;a&eHwl;azmfa&;vkyfief;wpfck jzpfonhf ½Hk;pdkuf&mjzpfonhftwGufjzpf onf/ 2012 ckESpfwGifaps;uGufwefzdk; a':vmav;bDvD,H&Sdonhf rsm;ESihf tcGefqdkif&mrsm;tm; tar&duefEdkifiHrS NAdwdefEdkifiHodkY ajymif;a&TUcJhonf/ ]]uRefrwdkYtaeeJYyl;aygif;aqmif &Gufa&;ykHpHajymif;vJcJhygw,f/ NyD;awmh uRefrwdkYtaeeJY NAdwdef EdkifiHrSm w&m;0ifvkyfudkifrSmjzpfNyD; ½kH;csKyfeJY pDrHcefYcGJa&;tzGJUuawmh tar&duefEdkifiHrSm usef&pfrSm jzpfygw,f}}[k &if;ESD;jr§KyfESHa&;qdkif&m owif; xkwfjyefa&;'g½dkufwm Spera rS odkY zkef; ar;jref;cef;rSwpfqihf ajzMum;cJh onf/ 'g[mtaygif;vu©Pmaqmif ygw,f/uRefrwdkYtaeeJY uRefr wdkY&JU xda&mufwJhtcGefEIef;xm; awGeJY ,SOfNydKifEdkifatmif BudK;pm; oGm;rSmjzpfygw,f/ tqdkyga&TUajymif;rIonf ukrÜPD tcGefEIef;tm; 2008 ckESpfwGif 34 'or 6 &mcdkifEIef;&Sd&mrS 2013 ckESpfwGif 3 'or 3 &mcdkif EIef;txd xda&mufpGmavQmhcsEdkifcJh onf/ Spera rS tae jzihf NAdwdeftcGefvkyfxkH;vkyfenf; rsm;ESihfudkufnDpGmvkyfaqmifxm; aMumif; ajymMum;xm;onf/ tpdk;&b@ma&;t&m&SdwpfOD;rS tpdk;& rMumrDujyKvkyfcJhonhf tcGefenf;pepftajymif;tvJrsm; onf ppfrSefonhf pD;yGm;a&;&if;ESD; jr§KyfESHrIrsm;twGuf axmufyHhay; &efjzpfaMumif;ajymMum;cJhonf/ ]]NAdwdefEdkifiH[m tcGefedAÁmef wpfckr[kwfygbl;/uRefrwdkY&JU yl;aygif;aqmif&GufrItcGeftwGuf t"duEIef;xm;u 20 &mcdkifEIef; jzpfwJhtwGuf tcGefjrihfwufrI&JU txufrSm&Sdaeygw,f}}[k olru ajymMum;cJhonf/

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