MYANMARS FIRST BILINGUAL BUSINESS JOURNAL November 7-13, 2013 Vol 1, Issue 40

Myanmar Summary
Contd. P 6...(Llectricity)
Electricity Price Hike Draws Public
Ire, But Experts Laud Move
Govt eyes to curb power production costs; move unpleasant, yet necessary
Sherpa Hossainy &
Oliver Slow
T
he Yangon City Electricity
Supply Board (YESB) in-
creased electricity prices
Ior LIe hrsL LIme In uImosL Lwo
years by more than 40 percent
in an attempt to allay rising
power generation costs, it said
in a public announcement last
week.
Besides covering costs, the
move also eyes to cut down
purchasing cost of electricity
to a certain extent, YESB said.
While there has been a mas-
sive public backlash against the
decision, experts said the move
was necessary to minimise the
governments burden of huge
electricity subsidies, which
could amount to almost 1 per-
cent of Myanmars GDP, and
also a promising sign for the
would-be foreign investors in
the power sector.
Nomita Nair, partner at UK-
bused Iuw hrm BerwIn eIgILon
Paisner (BLP) and part of the Contd. P 6...(Llectricity)
Despite Low Rating,
Business
Climate Improving
Myanmar assessed in study for frst
time; Score low, but reforms seen as
encouraging
F
or a country rolling out
economic reforms at a
startling pace, Myanmars
lowly ranking among the likes
of Eritrea and Chad for ease
oI doIng busIness mIgIL seL o
alarm bells for would-be foreign
investors.
TIe good news Ior hrms seek-
ing to tap the countrys natural
resources, tourism potential
and urgent infrastructure needs
is Myanmar is making progress
in preventing the rampant graft,
bureaucracy and cronyism that
under military rule made it one
of the worlds riskiest places to
do business, according to the
International Finance Corp
(IFC), the private-sector arm of
the World Bank.
or LIe hrsL LIme, LIIs yeur`s
Doing Business report meas-
ures regulations in Myanmar, a
country that has started to open
up to the global economy after
years of isolation, said Kan-
than Shankar, country manager
of the World Bank in Myanmar.
The data show that there is
considerable scope for reform,
Kyaw Min
Contd. P 2...(Low Rating)
team leading BLPs Myanmar
Practice, told Myanmar Busi-
ness Today, It is inevitable
that a rise in electricity prices
could trigger a public outcry.
However, end users need
to consider the real cost of
electricity generation and the
enormous investment that is
required to upgrade existing
crumbling infrastructure and to
add new capacity.
The Myanmar government has increased electricity prices by more than 40 percent in an attempt to deal with rising power generation costs.
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November 7-13, 2013
Myanmar Business Today
2
LOCAL BIZ
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Board of Editors
Editor-in-Chief - Sherpa Hossainy
Deputy Editor - Oliver Slow
Reporters & Writers
Sherpa Hossainy, Oliver Slow,
Kyaw Min, Shein Thu Aung, Phyu Thit Lwin,
Su Su, Aye Myat
Art & Design
Zarni Min Naing (Circle)
DTP
May Su Hlaing
Translators
Shein Thu Aung, Phyu Maung
Advertising
Tay Zar Zaw Win, Seint Seint Aye, Moe Hsann Pann
Advertising Hotline - 09 7323 6758
Managing Director
Prasert Lekavanichkajorn
pkajorn@hotmail.com
Email
Editor - sherpa.hossainy@gmail.com
Special Publications - oslow99@gmail.com
Advertising - sales.mbtweekly@gmail.com
Designer - zarni.circle@gmail.com
Phone
Editor - 09 42110 8150
Deputy Editor - 09 3176 9529
Designer - 09 7310 5793
Publisher
U Myo Oo (04622)
22A Kaba Aye Pogoda Rd, Bahan Township,
Yangon, Myanmar.
Tel: 951-2301568, 951-2301569, 951-2301570
Fax: 951-8603288 ext: 007
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Tel: (662) 6158625-33 Fax: (662) 6158634
Distributor (Bangkok)
Subscription & Circulation
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09421085511
und eorLs ure under wuy
to improve the countrys
business regulations. By
removing bottlenecks to
hrm creuLIon und growLI,
governments can signal
the emergence of a more
business-friendly envi-
ronment, as has already
been done in a large
number of economies in
the region.
The report, Doing Busi-
ness 2014: Understanding
Regulations for Small and
Medium-Size Enterprises
hnds LIuL sInce zoo,
22 of 23 economies in
EusL AsIu und LIe PucIhc
have made their regula-
tory environments more
business-friendly. Among
the regions economies,
China made the greatest
progress during that time
in improving business
regulations for local
entrepreneurs.
Myanmars inaugural
ranking of 182 from 189
countries covered in the
World Banks annual
Doing Business report on
Tuesday should not be
taken at face value, said
Charles Schneider, the
resident IFC representa-
tive in Yangon.
All the indices point
towards corruption, but
with increased transpar-
ency and increased use of
tendering they have taken
a lot of question marks
out of these processes,
Schneider said.
Since replacing a
military regime in March
2011, Myanmars quasi-
civilian government has
introduced a wave of eco-
nomic, political and social
reforms, which convinced
Western countries to
restart development aid
and suspend most of the
sanctions that for two
decades prohibited trade
and investment.
Under the junta,
Myanmars investment
climate was considered
IIgI-rIsk Ior hrms, wILI
muny puL o by LIe ILs
reputation for corruption,
limited legal safeguards
and opaque deals struck
largely without tenders.
n un eorL Lo creuLe
urgently needed jobs and
infrastructure in one of
Asias poorest countries,
Myanmar has sought help
in drafting new legislation
and setting up panels led
by technocrats to try to
improve the investment
climate.
Myanmar, however, was
still far behind Southeast
Asias biggest economies
according to the report,
with average time taken
to set up a business 72
days compared with 2.5 in
Singapore, 27.5 in Thai-
land and 6 in Malaysia.
For procedures involved
in acquiring construction
permits, there were eight
in Thailand, 11 in Singa-
pore and 16 in Myanmar.
Gaining electricity access
took an average 113 days
in Myanmar, compared
to 34 in Malaysia and 35
in Thailand, the study
showed.
Schneider said Myan-
mar had started from a
low base and still had a
long way to go in areas
like regulation, licensing,
and dispute settlement
mechanisms.
But new banking and
mIcro hnunce Iuws und
parliaments passing of an
investment bill last year
oerIng Lux breuks, Iong
land leases and foreign
participation in most
sectors were signs of its
commitment to attracting
businesses.
The government is
way ahead of the curve
on many of these reform
From page ...(Low Rating)
programmes, he said.
A better business
climate can enable entre-
preneurs and investors
to create more job oppor-
tunities for the people of
Myanmar, he added.
Measuring regulations
and other indicators of a
business-friendly envi-
ronment in Myanmar is
a great step forward for
Myanmars economy. As
a new entrant to Doing
Business, Myanmar now
has a good benchmark for
measuring the results of
its reform program.
A break from the past
was the holding of an auc-
tion for telecoms licences,
he said, which passed
heavy scrutiny. Telecoms
is seen by many econo-
Myanmar Summary
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Doing Business 2014 ~.
All the indices point towards corrup-
tion, but with increased transparency
and increased use of tendering they have
taken a lot of question marks out of these
processes.
mists as one of the most
important development
areas in Myanmar and
a sector, that like many,
was monopolised for
yeurs by u sLuLe-run hrm.
Qatars Ooredoo, and
Norways Telenor won the
rights to provide telecoms
services in June.
Its a couple of years ...
Myanmar can easily be
at the stage where they
are doing as well as other
AEC members, Schnei-
der said, referring to the
ASEAN Economic Com-
munity, which will come
into play in 2016.
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Myanmar Business Today
3
November 7-13, 2013
LOCAL BIZ
Myanmar Summary
Japan, Myanmar Reach Deal on Thilawa Development
C
ompanies from My-
anmar and Japan
signed an agree-
ment last week to develop
an industrial complex at
the Thilawa Special Eco-
nomic Zone located on
the outskirts of Yangon.
The consortium
including Japanese
companies Mitsubishi,
Sumitomo and Marubeni
will form a partnership
with the Myanmar gov-
ernment as well as local
companies to develop
the Class A Area of the
SEZ, designated for initial
development.
Work for this aspect of
the project is expected to
include the construction
of roads, sewage treat-
ment equipment and
further infrastructure at
a 400-hectare area at the
site, which is seen as a key
development for increas-
ing trade to the Southeast
Asian century.
We believe the SEZ
will create a vast number
of job opportunities for
our citizens and for the
transfer of technology,
it will also compliment
our national economic
objectives, said Finance
Minister U Win Shein at
a press conference to an-
nounce the latest deal in
Tokyo.
The Japanese arm of
the consortium will hold
a 49 percent stake in the
Oliver Slow project, while Myanmar
will control the other 51
percent.
Myanmar has cheap
and abundant labour
power and we believe that
Thilawa has very high
potential as a production
base, said Toru Kabeya,
un omcIuI Irom LIe
Transport Infrastructure
Project Department of
Marubeni.
Japan has sought closer
ties with Myanmar since
a quasi-civilian govern-
ment led by President
Thein Sein came to power
in 2011 and began imple-
menting a raft of changes
to attract international
investment.
Large-scale Japanese
companies such as Nis-
san, Canon and Hitachi
have announced plans to
begin operations in the
former pariah state and
Jupunese hrms Iuve been
successful in a number of
tenders, particularly with
regards to infrastructure.
As a sign of improved
bilateral relations be-
tween the two countries,
President Thein Sein
visited Tokyo last year,
while in May this year
Japanese Prime Minister
SIInzo Abe mude LIe hrsL
visit by a Japanese leader
in almost 40 years. Dur-
ing that visit, Abe wiped
much of Myanmars $6.6
billion debt to Japan.
The Thilawa project is
expected to begin com-
mercial operation in 2015.
Myanmar is also wooing
Japanese companies to
Trucks are seen in front of Myanmar International Terminals Thilawa, outside Yangon.
M
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be involved in a number
of other infrastructure
projects in the country.
November 7-13, 2013
Myanmar Business Today
LOCAL BIZ
4
Trude ecit Hits $qq million
M
yunmur suered u
Lrude dehcIL oI $qq
mIIIIon In LIe hrsL IuII
(April-September) of the cur-
renL zo1-1q hscuI yeur, om cIuI
data shows.
During the period, Myan-
mars foreign trade totalled
$10.65 billion, of which exports
amounted to $5.1 billion, while
imports stood at $5.55 billion,
according to the Central Statis-
Kyaw Min tical Organisation.
Border trade comprised $1.42
billion of the total export,
imports through border trade
stood at $851 million.
However, Myanmar regis-
tered a trade surplus of $136.44
million in September, according
to the statistical organisation.
n LIe hscuI yeur zo1z-1, My-
anmars foreign trade totalled
$18.42 billion, up $250 million,
or 1.4 percent, compared with
$18.17 billion in the previous
hscuI yeur - exporLs uccounLed
for $9.08 billion, while imports
represented $9.34 billion.
Myanmars major export
items include natural gas, jade,
beuns und puIses, rIce, hsI,
rubber and teak, while import
items include oil and gas, auto
spare parts, iron and steel, palm
oil, pharmaceutical products,
plastics, fertiliser, cement and
electronic equipment.
Myanmar Summary
F
ile
s
EU Appoints First Resident
Ambassador to Myanmar
Oliver Slow
T
he EU Has announced
ILs hrsL resIdenL Am-
bassador to Myanmar
as Roland Kobia, who was
previously EU Ambassador
to Azerbaijan for four years.
Kobia, who has also spent
time working for the EU in
Kenya and Congo, presented
his letters of credence to
President Thein Sein on
September 24 and has been
In LIe counLry Ior sIx weeks, repIucIng prevIous Heud oI Om ce,
Andreas List.
Speaking at a meeting with the press on October 30 at the Euro-
pean Union headquarters in Yangon, Kobia said that the EU had
a positive agenda in Myanmar and that their aim is to help the
countrys continued transition towards a genuine democracy.
He revealed some of the key issues that the EU will be working
on as part of their bilateral relations in Myanmar, which includes
support of the transition to reform, the ethnic peace process, inter
communal violence with particular reference to the ongoing situ-
ation in Rakhine state, democracy and human rights, the upcom-
ing elections in 2015, as well as poverty reduction and trade and
investment.
Regarding trade and investment, Kobia said that the EU was
exploring the possibility of setting up an investment agreement in
Myanmar.
Wherever you are in the world, investors dont like uncertainty,
so if businesspeople can see that their investments are protected,
then they are more likely to invest, Kobia said.
He added that the EUs decision to permanently drop all remain-
ing sanctions and grant the generalised system of preferences
(GSP) were a commitment from the EU that they were pleased with
the progress that the country is making.
Myanmar Summary
M
B
T
RoIand Kobia has been appointed as the EU's rst
resident Ambassador in Myanmar.
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Myanmar Business Today
LOCAL BIZ
5
November 7-13, 2013
DHL Expands Myanmar Presence
Establishes fully-owned country of ce, appoints Christoph Beier as country manager
Su Su
D
HL Global For-
warding, the
air and ocean
freight specialist within
Deutsche Post DHL, has
expanded its Southeast
Asian operations with the
establishment of a fully-
owned counLry om ce In
Myanmar, the company
said.
Kelvin Leung, CEO for
AsIu PucIhc, DH GIobuI
Forwarding, said, As a
fast-developing country
with a population of 60
million growing at around
6.5 percent, Myanmar has
the potential of becoming
one of the largest markets
in Southeast Asia.
DHL Global Forward-
ing logistics experts based
in Yangon will help bridge
businesses in Myanmar
with a network of interna-
tional business partners
both within and beyond
the region.
The move follows DHLs
almost twenty years of
operations in Myanmar
through agency represen-
tation. Christoph Beier,
who previously was DHLs
operations manager for its
BungIudesI om ce, wIII ucL
as the country manager in
Myanmar, DHL said in a
statement.
Beier said: Myanmars
geographical advantage
and developing trans-
portation infrastructure
coupled with DHLs
exIsLIng eeLs und sLrong
long-term strategic
partnerships with lead-
ing local providers will
enable DHL to maximise
its potential to deliver
muxImum benehLs Lo
customers.
All while ensuring
complete compliance
with the countrys rules
and regulations for ship-
ping procedures and
documentation.
A favourable production
environment is attracting
investments from major
international corpora-
tions across various
industries in Myanmar.
The countrys growth
in 2012-13 has been
primarily driven by gas
production, construction
and services and DHL
said it is fully-equipped to
support these sectors, in
addition to consumer and
technology.
TIe Myunmur om ce`s
operations will cover the
companys full range of
services including inter-
national freight forward-
ing, air and ocean con-
solidation, liner/NVOCC
agency representation
and customs brokerage as
well as local transporta-
tion and warehousing.
Standard IT systems
Ior LIe om ce wIII be com-
pletely implemented by
the end of the year, DHL
said.
DHLs network spans
more than 220 countries
and territories, with
285,000 employees. DHL
is part of Deutsche Post
DHL, which is the worlds
largest logistics company.
The Group generated
revenue of more than 55
billion ($75.55 billion) in
2012.
Myanmar Summary
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BHI CIobaI Forwarding has estabIished a fuIIy-owned country ofce in Myanmar.
F
ile
s
November 7-13, 2013
Myanmar Business Today
LOCAL BIZ
6
From page ...(Llectricity)
From page ...(Llectricity)
If costs are not passed through
to the end-user, they are in effect
being subsidised by the government
and this may not be sustainable.
The electricity price hike by the government will hurt the low-income families, Yangon residents say.
M
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According to the YESB an-
nouncement, the electricity
price for public household will
remain unchanged at K35 (3.6
cents) per unit of consumption
up to 100 units. Consumption
above 100 units will be charged
K50 (5.15 cents), which was K35
before.
The charge for public industry
and enterprises will also remain
unchanged at K100 (10.3 cents)
per unit up to 5,000 units.
Charge for consumption above
5,000 units was revised to K150
(15.4 cents) per unit, which was
previously K75 (7.7 cents). The
electricity prices for govern-
ment departments will be K50
per unIL Ior omce use, und K1oo
for state industrial use.
The revised prices will be ef-
fective from November, YESB
said. The existing prices, which
are two times more than those
cIurged In zoo6, were In eecL
since January last year.
The announcement of the
price hike raised some concerns
and the local media went as
far as accusing the govern-
ment of only considering the
InLeresLs und prohLs oI prIvuLe
companies.
In Myanmar, the lack of
investment over the years has
compounded the problem and
creates a situation for some
where the options are having no
access to electricity or resorting
to expensive diesel generators,
said Nomita, who specialises
In InLernuLIonuI projecL hnunce
transactions, especially within
the energy sector.
If costs are not passed
through to the end-user, they
ure In eecL beIng subsIdIsed by
the government and this may
not be sustainable.
Nomita said in any economy,
the authorities are constantly
balancing energy security, af-
fordability and environmental
sustainability. Appropriate
prIcIng oI end-user LurIs
should be combined with a
strong electricity regulator
and comprehensive legislative
framework in order to stimulate
increased and long-term invest-
ment into this vital sector.
Allen Himes, managing direc-
tor of Indigo Energy, an energy
hrm wIIcI Is InvoIved In vurI-
ous projects in Myanmar, told
Myanmar Business Today that
this rise in prices is a necessary,
if unpleasant, step needed in
the development of Myanmars
electricity sector.
I think the government has
been quite reasonable in rais-
ing the rates in a graduated
way, protecting the low-income
users.
Himes said the government
is actually still subsidising elec-
tricity for the retail users since
no one can produce electricity
for less than K50 per unit.
As for the industrial users,
they will still be paying less per
unit of electricity than they do
with diesel generators while the
government is getting closer to
cost recovery.
Most developed countries
price their electricity around
the cost of production which is
still higher than what Burmese
users will be paying, he said.
Nomita wrote in an expert
legal insight article that there is
a tendency to link the opening
of the economy and the country
to foreign investment with
increases in the general cost of
living, a view that seems to be
especially held by SMEs which
constitute over 90 percent of
Myanmar businesses.
The fact that the Myanmar
authorities are willing to go
ahead with this increase should
be a positive sign to independ-
ent power projects (IPP) devel-
opers, she wrote.
However, the legislative
framework governing electricity
LurI, reguIuLIon, generuLIon,
transmission and distribution
is undergoing review and a
new electricity law is still being
considered by the parliament.
The new law is expected to be
promulgated in March 2014
and some IPP developers may
prefer to wait for this to happen
beIore commILLIng uny sIgnIh-
cant investment, Nomita wrote.
Meanwhile, amid criticism,
the Myanmar government
defended its decision and said it
will not drop its announced hike
in electricity prices. We will not
drop the prices. The new price
Is eecLIve Irom November, buL
people will actually pay the bills
in December. So, we informed
people one month in advance,
Khin Maung Soe, minister for
electric power, told reporters
after a parliamentary meeting
on Wednesday last week.
The minister said the govern-
ment did consider the public
while raising prices. Working
and middle-class people in My-
anmar use less than 100 units
of electricity, according to our
study. They will be charged at
the usual rate of K35. Accord-
ing to our survey, 70 percent of
the population uses under 100
units.
All the small and medium en-
terprises are using under 5,000
units, they are charged only
K100 per unit. Only the large
businesses using over 5,000
units will be charged at K150.
However, Myanmar Business
Today spoke to more than 20
peopIe Irom dIerenL purLs oI
Yangon and none of them said
they use less than 100 units
of electricity. Even if you do
nothing youll consume more
than 100 units, Ko Zaw Win
from North Dagon township
quipped, while adding that
none of his neighbours or
friends use less than 100 units
of electricity.
U Maung Htwe, a taxi driver
from South Okallapa township,
said the price hike is going to
add to his day to day worries.
I think all the low-income
IumIIIes wIII suer. How wIII
they pay extra for electricity
when prices of everything are
also rising?
Ko Tin Naing from Tamwe
township, who uses on an
average 250 units of electric-
ity a month due to running a
personal computer and other
appliances, said the move will
hurt the poor. Its not a good
situation. I think the govern-
ment didnt make a good
decision.
According to 2012 statistics,
electricity consumption in
Myanmar was 1,555 megawatts
(MW), of which Yangon con-
sumed about 667MW. Among
the total consumption of elec-
tricity in Yangon region, public
consumption made up 295MW,
industrial and business enter-
prises 123MW and hospitals,
government departments
and high schools consumed
109MW.
The minister added that the
prices will be reviewed every
year, and if the production cost
goes down, prices will follow
suit. There will be more price
hikes in case the production
costs rise, he added. However,
he said he doesnt see the price
rising in the near future, and
hoped that the government
will be able to reduce the prices
when Myanmar has more gas
turbines and hydropower
within a year.
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Business Today . ._.:_~:..._.
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Myanmar Business Today
7
November 7-13, 2013
Contd. P 8...(Bosch)
LOCAL BIZ
AB Loun to Redoce Power Loss by qpc
A
$60 million soft loan
from the Asian Develop-
ment Bank (ADB) to
overhaul Myanmars electric-
ity supply network will reduce
power transmission losses by 4
percent, or 98 million units, a
minister said.
Minister for electric power U
Khin Maung Soe told the parlia-
ment last week that the govern-
ment can boost its income by
K6.96 billion ($7.2 million),
based on the selling price of K71
per unit, by preventing such
losses.
Electric power transmission
and distribution losses include
losses in transmission between
sources of supply and points of
distribution and in the distribu-
tion to consumers, including
pilferage.
According to World Bank
data, Myanmars electric power
transmission and distribution
losses are 21 percent of the
total output, while its neigh-
bours China, Thailand and
Bangladesh have losses of 6,
Aye Myat
7 and 10 percent respectively.
Myanmars total installed
power capacity is about 3,500
megawatts.
Both technical and non-
technical losses can be reduced
to a certain extent by installing
new transformers, substitut-
ing old power lines and aerial
bundled conductors and re-
placing analog meter boxes,
according to ADBs consultants
suggestions.
Under the loan agreement,
the payback period is 24 years,
including an 8-year grace pe-
riod. The interest rate is 1.5 per-
cent in the payback period and
1 percent in the grace period,
the minister told the current
Pyidaungsu Hluttaw session.
ADB has pledged to assist in
Myanmars infrastructural de-
velopment in terms of technol-
ogy, hnunce, communIcuLIon
and sustainable energy during
ADB President Haruhiko Kuro-
damades visit in February.
Myanmar Summary
F
ile
s
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Bosch Gets New Executive
Management
Andre de Jong to head operations of three regional
markets
G
erman technology
and services sup-
plier giant Bosch
last week announced the
appointment of Andre de
Jong as the new head of
the Bosch representative
omces In Myunmur und
Laos, as well as the man-
aging director of Robert
Bosch (Cambodia) Co Ltd.
De Jongs appointment
underscores the impor-
tance of the new emerg-
ing markets for Boschs
further growth plans in
the region as Southeast
Asia is currently the fast-
est growing market for
Bosch, the company said
in a statement.
I am positive about the
outlook of the three new
frontier markets, and I
see promising growth in
the automotive, construc-
tion, furniture, security,
hydropower, oil and gas,
and mining sectors, said
de Jong.
Bosch is among the
hrsL movers InLo Myun-
mar, we have been in
Cambodia since 2004,
Aye Myat and we opened our
represenLuLIve omce In
Laos last year. We are
therefore well-positioned
to seize new opportunities
and stay on the course for
growth, he added.
Bosch said Myanmar
is a fast-growing and
dynamic market with im-
mense poLenLIuI. BrIey
after the market of My-
anmar opened up, Bosch
established a representa-
LIve omce In Yungon In
April. Since then, Boschs
line of power tools, indus-
trial boilers, as well as its
surveillance and security
systems have been mak-
ing progressive headway
into the market, the com-
pany said. A month after
the opening of its repre-
senLuLIve omce, BoscI
uIso seL up ILs hrsL BoscI
Car Service workshop to
serve Yangons booming
automotive landscape.
Born in the Nether-
lands, de Jong began his
career with Bosch in 1997
as brand manager for the
Bosch Power Tools Acces-
November 7-13, 2013
Myanmar Business Today
LOCAL BIZ
8
Myanmar Summary
Muize Ixport oobles to go,ooo Tonnes
T
he export earnings from
maize has reached $129
million in the current
zo1-1q hscuI yeur up Lo Oc-
tober, more than double com-
pared with the same period last
yeur, uccordIng Lo hgures Irom
the Ministry of Commerce.
During April to October,
350,000 tonnes of maize were
exported, while the export
amount was 170,000 tonnes
in the same period in 2012-13,
fetching $55 million.
The majority of Myanmars
maize is exported to China and
Thailand.
Chinese traders often travel
to Mandalay to directly pur-
chase corn without choosing a
variety of maize, said U Myo
Aung, a maize entrepreneur.
We often export without
grain to Thailand and the price
varies between K500 and K600
(52 to 62 cents) per viss [1 viss =
1.65 kilograms], he added.
The price of corn has in-
creased recently due to high de-
mand of the crop in the market.
However, production costs have
also increased in the meantime,
leaving businesspeople with
many challenges in the market,
said one maize trader.
Myanmar has around 845,ooo
acres of maize or corn planta-
tions, the majority of which are
in Shan state, and Sagaing and
Mandalay regions, according
to the Agricultural Planning
Department.
Myanmar is the worlds 12
th
largest maize exporter, accord-
ing to the United States Depart-
ment of Agriculture (USDA).
Phyu Thit Lwin
Myanmar Summary
W
M
C
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Eel Export Surpasses
Predicted Figures
Phyu Thit Lwin
T
Ie exporL oI EeI Ius surpussed predIcLed hgures Ior LIe hrsL
sIx monLIs oI LIe hnuncIuI yeur, uccordIng Lo hgures Irom LIe
Myanmar Fishery Federation.
TIe LurgeL Ior LIe hrsL IuII oI LIe zo1-zo1q hscuI wus $o mII-
IIon, wILI LIe ImporL hgure reucIIng $z mIIIIon up Lo LIe end oI
September. For the remaining six months, the target is $40 million
In EeI exporL, buL uccordIng Lo currenL esLImuLes, LIuL hgure couId
reach $60 million.
EeI exporL umong hsIery producLs Iuve u IoL oI poLenLIuI now
and in the future, said U Ba Thaw, chairman of Myanmar Eel En-
trepreneurs Association. We believe that eel export will overstep
LIe specIhed esLImuLe uL LIe end oI LIe hscuI yeur, Ie udded.
Myanmars Eel is particularly popular in China and Japan, with
China having been sent 10,000 tonnes in total. Myanmars largest
hsIery producLs Ior exporL ure EeI und RoIu, wILI $z6o mIIIIon
beIng eurned Irom LIe producLs In LIe currenL hscuI.
Myanmar Summary
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W
M
C
sories division in Benelux. He
played branding, marketing,
international management and
leadership roles across Switzer-
land, Hong Kong, Vietnam and
Germany.
The Bosch Group comprises
Robert Bosch GmbH and its
roughly 360 subsidiaries and
regional companies in some 50
counLrIes. n hscuI zo1z, ubouL
306,000 associates of Bosch
Group generated sales of 52.5
billion ($71.4 billion). Since
the beginning of 2013, its op-
erations have been divided into
four business sectors: automo-
tive technology, industrial tech-
nology, consumer goods, and
energy and building technology.
From page ;...(Bosch)
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Striped eels.
Myanmar Business Today
LOCAL BIZ
9
November 7-13, 2013
Fish known IocaIIy as Ngar Kyi Kan are seen after being unIoaded from a shing boat at NgapaIi Beach in Thandwe township, Rakhine state.
S
o
e

Z
e
y
a
T
u
n
/
R
e
u
t
e
r
s
T
he marine exports
dIpped In LIe hrsL IuII
oI LIe currenL hscuI yeur
despite strong foreign demand,
according to sources from Ma-
rine Producers and Exporters
Association.
The exporters blamed the low
rate of national production for
the fall, and abrupt weather and
sea conditions in the previous
months, which resulted in a
substantially lower catch.
Marine product exports
garnered about $280 million,
down $23 million compared
to the same period last year,
from exporting 160,000 tonnes
of marine products from April
to September in 2013-14 FY,
according to Directorate of
Fisheries statistics.
Myanmar had previously set a
target of exporting marine prod-
ucts worth $700 million $440
million through sea routes and
$260 million through border
Lrude - by LIe end oI LIIs hscuI
year.
During the six-month period,
Myanmar exported 75,000
tonnes of marine products
through sea routes and earned
$135 million, while $144 mil-
lion was earned from exporting
Marine Exports Fall Despite Foreign Demand
Phyu Thit Lwin 92,000 tonnes through border
trade.
This setback comes amid
surging interest from marine
entrepreneurs from Vietnam,
Thailand, China, Japan, Korea,
the US and EU, who held talks
with the authorities to invest
in Myanmars marine product
secLor und oered Lo purcIuse
more. Marine products from
Myanmar are now exported to
32 countries including the EU.
Marine products are one of
the priority export sectors, ac-
cording to the national export
sLruLegy. However, on LIe Ip-
side, local demand for marine
products is also up as majority
of the inadequate catch is get-
ting exported, leaving little
supply to satisfy the national
demand.
U Win Kying from Myanmar
Fishery Federation said, Now-
adays we cant deliver as much
hsI we wouId IIke Lo geL In LIe
IocuI hsI murkeL. IsI IurmIng
does noL geL prohL us IL used Lo
and many people are turning
away from the industry.
Myanmar Summary
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AmaWaterways Unveils Myanmar Plans
To start Ayearwaddy river cruises by October 2014
Aye Myat
C
alifornia-based luxury
river cruise line AmaWa-
terways will enter the
Myanmar river cruise market
with a new riverboat in October
nexL yeur, u Lop om cIuI suId.
The new vessel, named the
AmaPura, will carry 56 pas-
sengers on the Ayeyarwaddy
river, the so-called road to
Mandalay, with itineraries
including Yangon, Myanmars
former capital, and Mandalay,
the companys chief executive
Rudi Schreiner said.
AmaWaterways is working
with a partner in Myanmar to
develop the new ship but the
company did not reveal any ad-
ditional details on the Myanmar
project.
To date, none of the other ma-
jor US-based river cruise lines
have entered the Myanmar
river cruise market, though oth-
ers are rumoured
to be looking into
it.
The Myanmar
river cruise
market includes
two vessels from
Orient-Express,
the 82-passenger
Road to Manda-
lay and 50-pas-
senger Orcaella;
Viking River
Cruises 60-pas-
senger Viking
Mandalay; and one planned
entry from Sanctuary Retreats,
a division of Abercrombie &
Kent, the 48-passenger Sanctu-
ary Ananda.
This new cruising area and the
investment in three new ships
means that AmaWaterways
will by the end of 2014 have
18 ships sailing in more than
20 countries on waterways
including the Rhine, Seine,
Danube, Main, Rhone, Douro
and Moselle in Europe, as well
as the waterways of Russia, the
Mekong in Indochina, cruise-
and-touring holidays in Africa
and the Ayeyarwady.
AmaWaterways was one of
LIe hrsL Lo expIore LIe Mekong
and is still the only river cruise
operator to feature the Chobe
River in Botswana. Prices and
itineraries for Myanmar will be
announced soon.
Myanmar Summary
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November 7-13, 2013
Myanmar Business Today
LOCAL BIZ
10
Rice Ixport Iulls by $1oo million
M
yanmars rice export
earnings dropped by
more than $100 mil-
IIon In LIe hrsL eIgIL monLIs
(April-November) of the cur-
renL zo1-1q hscuI yeur, mInIs-
try of commerce data shows.
During the period, Myanmar
exported about 451,728 tonnes
of rice, earning $175.54 mil-
lion, while in the same period
oI LIe prevIous hscuI Myunmur
exported 731,201 tonnes of rice,
bagging $276.17 million.
The decline was partly attrib-
uted to natural disasters that
hit the country this year, and
the price increase of rice in the
Kyaw Min domestic market.
This year our local rice pro-
duction has decreased and the
local rice prices have gone up,
Dr Soe Tun, secretary of Myan-
mar Rice Association, said.
Also, last year it was pos-
sible to export rice with special
orders but this year we didnt
have the facility. So, the export
hgure Ius gone down.
Although rice and paddy
export has hit a snag, broken
rice exports have gone up, rice
traders say.
There are seven kinds of
major agro export items in My-
anmar including rice and rice
products, and various kinds of
beans.
Myanmar Summary
People rest by bags of rice which are waiting to be transported from a local mill in Kyaiklat
town.
D
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Sooth ugon Indostriul Zone's Power Sopply Restored
A
uthorities have restored
electricity supply fully at
Ward 64 of South Dagon
Industrial Zone, the South
Dagon Industrial Zone Manage-
ment Committee said last week.
In 1996, the government
established Ward 63 and Ward
64 of Dagon Myothit (South)
township as an industrial zone
to accommodate the small and
medium enterprises in those
wards.
At the time of establishment,
the industrial zone was fully
supplied with electricity, how-
ever, cyclone Nargis devastated
the infrastructure severely in
2008.
Over 1,200 industries are
operating in the industrial zone,
according to the industrial zone
management committee.
Su Su The Industrial Zone Electri-
hcuLIon Sub-CommILLee und
Yangon City Electricity Supply
Board (YESB) jointly carried
ouL eIecLrIhcuLIon Lusks Ior LIe
zone and electricity supply was
fully restored on October 19, a
statement said.
A plan is underway to sup-
ply electricity to Ward 63,
uccordIng Lo LIe eIecLrIhcuLIon
subcommittee.
Myanmar Summary
Ministry Extends Textile
Factory Tender Closing Date
T
he closing date for a ten-
der to lease four textile
factories in Myanmar has
been extended to allow more
time for the bidding companies
to prepare for the bid, the
Textile Industries department
under the Ministry of Industry
said. Open tenders were in-
vited for leasing textile factories
under the Textile Industries
department in September, with
a closing date of October 31.
The new deadline for sub-
mitting bids is November
29, the ministry said in an
announcement.
The textile factories up for
lease are: No.1 Textile Factory
(Shwedaung), No.4 Textile Fac-
tory (Pwint Pyu), No.5 Textile
Factory (Pakokku) and No.6
Aye Myat Textile Factory (Sarlingyi).
Tender documents will be
uvuIIubIe durIng omce Iours
uL LIe omce oI LIe MuLerIuI
Planning Department, Textile
Industries, in Nay Pyi Taw.
Myanmar Summary
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Fuji Xerox Gets SEA Games Sponsorship Deal
F
uji Xerox will serve as an
omcIuI sponsor In LIe T
solutions category for the
27
th
Southeast Asian Games
(SEA Games) scheduled to take
place in Myanmar from Decem-
ber 11 to 22, the company said.
We believe that by hosting
the SEA Games, Myanmar is
making a good investment in
creating a better future for
young Myanmar people and a
better future for the country,
said Masashi Honda, corporate
vice president of Fuji Xerox and
the president of Fuji Xerox Asia
PucIhc OperuLIons.
We are very proud to be a
sponsor for this event, which
the whole of Southeast Asia is
excited about and looking for-
Shein Thu Aung ward to. Fuji Xerox will ensure
ample support to the event to
make it a success.
This will be a historical event
for Myanmar, and we wish all of
the athletes great success.
Myanmar will host the SEA
Gumes Ior LIe hrsL LIme In qq
years this year. The event is
held once in every two years
and is a highly popular sporting
event in the region.
A total of 6,000 athletes
from 11 countries Myanmar,
Thailand, Myanmar, Malaysia,
Singapore, Laos, Vietnam, the
Philippines, Indonesia, Brunei,
Cambodia, East Timor from
the Southeast Asian region
will participate in more than
30 sporting events during the
event.
Fuji Xerox established its
direct business operation Fuji
Xerox AsIu PucIhc PLe Ld
(Myanmar Branch) in Yangon
in April.
Fuji Xerox Co Ltd is a 75-25
joint venture between FU-
JIFILM Holdings Corp and
Xerox Corporation (USA) that
develops, manufactures and
murkeLs omce und pubIIsI-
ing equipment, digital colour
multifunction devices, as well
as document management
software, solutions and services
In Jupun und LIe AsIu-PucIhc
region including China. It
also manufactures digital
copiers, multifunction devices
and printers for worldwide
distribution.
Founded in 1962, the compa-
ny currently employs approxi-
mately 45,000 people globally,
and has more than 80 domestic
und overseus umIIuLes und suIes
subsidiaries.
Myanmar Summary
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. ~_~.~~ _e. ._ Masashi Honda
~ ._.:_~:..._.
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Myanmar Business Today
LOCAL BIZ
11
November 7-13, 2013
Three Airports to be Upgraded
Kyaw Min
T
he government has
announced that
three new airports
in the country will be
upgraded to deal with the
Inux oI LourIsLs LIuL ure
coming to the country.
The airports at Tachil-
eik, Nyaung Oo (near
Bagan) and Heho the
gateway for Inle Lake
will be upgraded next
year, according to U
Tin Naing Tun, director
general of the Aviation
Directorate.
There are currently
10 foreign tourist entry
airports and these three
airports will be improved.
After that, Myitkyina and
Thandwe airports will be
improved, he said.
The government has
made plans to improve
a number of airports
around the country, with
the successful winners
of the tender to upgrade
Yangons Mingalardon
and Mandalay airports
being announced in
August.
In Myanmar, 27 local
airports serve 33 airlines
on a daily basis.
Myanmar Summary
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Tourists board a plane at Thandwe Airport in Rakhine state.
YISB Redoces Ilectric
Meter Rental Fee
Kyaw Min
T
he monthly electric meter rental fee has
been halved to K500 (52 cents) starting
from October, Yangon City Electricity
Supply Board (YESB) Chairman U Aung Khaing
said.
Previously the rental fee was K1000 ($1.03).
This was done taking peoples demand into ac-
count, he said.
The expenditure of supplying electricity start-
ing from the power station to peoples houses is
very high. But we listened to peoples desire, U
Aung Khaing said.
There are over 900,000 electric meters in-
stalled in Yangon, according to YESB.
Myanmar Summary
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q_. ._e. ._ ee.~.~.~ ._.:_~:.._.
November 7-13, 2013
Myanmar Business Today
LOCAL BIZ
12
Garlic Chives Export to
S Korea Shoots Up Threefold
T
he export of garlic chives
to South Korea saw an in-
crease of more than 200
percent in September compared
to earlier months, according
to data from the Ministry of
Commerce.
In previous months, the ex-
port of garlic chives reached an
average of 14 tonnes per month,
buL In SepLember, LIuL hgure
reached 44 tonnes, fetching
about $1.3 million.
The product, which is also
known by its Latin name Allium
Phyu Thit Lwin tuberosum, is popular in South
Korea as it is often used in tra-
ditional Kimchi food.
If the product is exported
by air, 7 tonnes are sent at one
time, however, if it is transport-
ed by sea, then 14 tonnes can
be exported, said Ko Phyo Wai
Lin, who deals in the export of
the product.
In order to export garlic
chives, businesspeople must
apply for licences from the
Myanmar Agricultural Depart-
ment, Myanmar Vegetables and
Fruits Exporters Association
and the Ministry of Commerce.
Myanmar Summary
Ooredoo Hosts App Development Workshop
Q
atari telecoms opera-
tor Ooredoo last week
sponsored a brainstorm-
ing workshop for application
developers, aimed at improving
local peoples knowledge of
Myanmars telecoms market.
The event, hosted at Myanmar
ICT Park, covered topics includ-
ing how to grow Myanmars
mobile market and apps culture,
challenges in localisation and
usage of standard Myanmar
font in developing apps, how
to promote the mobile apps
market as well as buying pat-
terns and behaviours of mobile
phone purchasers.
Young people all around the
world are ambitious and want
to ensure that their society
becomes a better place, said
Ross Cormack, CEO of Ooredoo
Myanmar.
We musL be boId In hndIng
new ways to empower the next
generation. But being proactive
is not enough we must listen
to youths, and partner with
Oliver Slow government and civil society
groups in order to develop tech-
nology solutions that are acces-
sIbIe, uordubIe und scuIubIe,
so everyone cun benehL.
Ooredoo was one of two
international phone operators,
alongside Norways Telenor,
granted licences to operate in
Myunmur`s greenheId LeIecom-
munications market, where
only a tenth of the population
has access to a mobile phone.
The Myanmar government
has set the companies ambi-
tious targets to make almost
nationwide mobile phone cov-
erage by 2016.
Corporate Social Responsi-
bility (CSR) has been a large
part of Ooredoos drive into
Myanmar and the company is
expected to operate a number
of similar programmes.
Ooredoo operates predomi-
nately in the Middle East, in
countries such as Kuwait and
Palestine. It reported revenues
of $9.3 billion in 2012 and has
a customer base of 92.9 million.
Myanmar Summary
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.q....~~..~.~_ ~.._:
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.:~.:. ~, .~ . ~ ~~:.~. .
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._ . _. ~ . _.. . ._ . ._ ~.~
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Myanmar Business Today
REGIONAL BIZ
13
November 7-13, 2013
Myanmar Summary
Buck to School: Singupore Coorse OHers
Maids A Brighter Future
Laura Philomin
W
hen she was eight,
Lisa Padua lost
everything after her
father died, forcing her to leave
school in her mid-teens to work
as a maid in Qatar and then in
Singapore.
Twenty one years later, she still
works in Singapore as a domes-
tic helper but now owns three
businesses and earns enough to
send six nephews and nieces to
college in the Philippines.
Padua says she owes her suc-
cess to Aidha, a micro school in
Singapore that trains women
like her in wealth and business
management so they can build
a better future back home in
the Philippines, Indonesia
and Myanmar.Im a farmers
daughter, she told Reuters. So
I said one day I want to have my
own farm, my own house, my
own wuLer buuIo. And suId
because I didnt go to college, I
want my nephews and nieces to
have their dreams come true.
AIdIu oers u nIne-monLI
course for S$350 ($280) that
emphasises computer, com-
munIcuLIon und hnuncIuI skIIIs.
The three-hour classes run two
Sundays a month to accommo-
duLe LIe duys o oI LIe women
who work as family maids, nan-
nies and caregivers to the old
and ill.
Ambitious students can then
take a more intense nine-month
module that helps them launch
their businesses.
This journey of transforma-
tion allows them to stand up
by LIemseIves hnuncIuIIy,
Veronica Gamez, Aidhas execu-
tive director, told Reuters.
Gamez, who holds an MBA
from the University of Chicago
and worked at Credit Suisse
and Boston Consulting Group,
uses her experience to make the
modules practical for the real
world.
Saving for the future is the
crux of the course.
The biggest challenge in
breaking the cycle of poverty is
hndIng u producLIve use Ior LIe
money the women send home,
Gamez said, rather than having
it spent on items that do not
ultimately help their families.
At least 211,000 foreign
domestic helpers work in tiny,
wealthy Singapore for about
S$300 to S$600 a month. Hong
Kong and Taiwan also have
large concentrations of these
women.
The money they send home
is modest on a personal scale
but the overall remittances
from hundreds of thousands
of women working abroad are
enormous, ploughing billions
of dollars into the economies of
the Philippines, Indonesia and
Myanmar.
A recent World Bank report
on remittances said $26 billion
Ius owed InLo LIe PIIIIppInes
so far this year, making up al-
most 10 percent of the countrys
gross domestic product.
Directing those funds into
entrepreneurial projects could
have an even bigger multiplier
eecL Ior deveIopIng counLrIes,
especially in rural areas.
The objective is not just to
impart business skills, Gamez
said, but to turn the women into
agents of positive change.
In villages like the one where
Padua grew up, farms without
funds are left barren and aban-
doned, and people are left with-
out work. But the farm Padua
bought using her savings is now
managed by her brother. They
employ up to 18 farm hands,
providing her neighbours with
jobs and income.
Padua also rents out a house
to families and invested in a
friends business that delivers
frozen food to local shops.
That spirit of sharing extends
to many of the women who
enrol in Aidha. Almost half of
the 500 students this year are
supported by their employers,
who pay all or some of the fees.
People are more generous
than we think, Gamez said. If
you have a domestic worker,
creuLe u dIerence In your own
Iome hrsL. Reuters
CITIC Telecom Announces Strong Revenue Growth
Launches expanded Singapore and Malaysia points-of-presence
H
ong Kong-based ICT
solutions provider
CITIC Telecom Interna-
tional CPC Ltd, a wholly-owned
subsidiary of CITIC Telecom
International Holdings Ltd, last
week announced strong growth
fuelled by increasing Asia Pa-
cIhc demund Ior ILs VPN und
cloud services.
CITICs revenue increased by
almost 30 percent year-on-year,
Stephen Ho, chief executive of
CITIC Telecom CPC, said.
Said Danni Xu, research
analyst at Frost & Sullivan, said:
CITIC Telecom CPC was able
to achieve an exemplary growth
Kyaw Min
rate in 2012, outcompeting
most of its competitors in the
Greater China VPN market. Its
growth leadership position is
backed by its decent customer
base enlargement, solution
prohIe enIuncemenL, us weII us
infrastructure expansion.
CITIC Telecom CPC also
launched an expanded Sin-
gupore omce und new servIce
operating presence in Malaysia
to support continued ASEAN
growth, and further bolster
its global footprint, it said in a
statement.
TIe SIngupore omce, wIIcI
will operate as the companys
new regional hub for Southeast
Asia, will provide customer
support, engineering, sales and
other services, CITIC said.
These expanded points
of presence will enable even
higher service quality to our
customers, said Stephen.
We can deliver higher re-
sponsiveness to help ASEAN
customers troubleshoot issues,
or provide advice for upgrades
and migrations. I expect we
wIII grow our SIngupore sLu by
about 70 percent in the coming
years.
With a strong footprint in
Asia, we are looking forward to
global growth, added Stephen.
We ure usIng AsIu PucIhc us u
springboard to the world.
Myanmar Summary
Domestic helper Lisa Padua (2nd R) jokes as she shops for clothes with her friends on a day off, at Lucky Plaza in Singapore. When she was
eight, Padua lost everything after her father died, forcing her to leave school in her mid-teens to work as a maid in Qatar and then in Singapore.
Twenty one years later, she still works in Singapore as a domestic helper but now owns three businesses and earns enough to send six nephews
and nieces to college in the Philippines. Padua says she owes her success to Aidha, a micro school in Singapore that trains women like her in
wealth and business management so they can build a better future back home in the Philippines, Indonesia and Myanmar.
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November 7-13, 2013
Myanmar Business Today
REGIONAL BIZ
14
Indonesia May Issue Its First
Ioro Bonds Next Yeur
I
ndonesia is considering
IssuIng ILs hrsL euro-denom-
inated bonds next year in
anticipation of tighter supplies
of dollars as the US Federal
Reserve cuts back its stimulus
programme, the countrys
hnunce mInIsLry suId IusL week.
Su Su I t is discussing selling up to
the equivalent of $6 billion of
euro and yen sovereign bonds.
We are considering all
sovereign bonds, but for the
moment we are discussing only
yen and euros, the head of the
mInIsLry`s debL omce, RoberL
Pakpahan, said in a statement.
Southeast Asias biggest econ-
omy issues sovereign bonds in
yen and dollars to help cover its
budgeL dehcIL, und oers sIurIu
dollar bonds for Middle East
investors.
TIe zo1q budgeL dehcIL Is
set at 1.69 percent of gross do-
mestic product or 175.4 trillion
rupiah ($15.87 billion), down
from 2.38 percent this year.
Asian LNG Prices Ripe to Rally As Demand Surge Looms
T
he stage is set for higher
spoL AsIun IIquehed nuLu-
ral gas prices as a cooler
winter looms, China faces a gas
shortfall, I ndia buys more and
nuclear power remains idled in
J apan and South Korea.
While LNG prices currently
at $17 per million British ther-
mal units (mmBtu) are still
sitting 14 percent below the last
winter peak of $19.67 hit on
February 18, they have already
recovered 20 percent from this
years low of $14.13.
And chances are prices may
rise more than they did last
northern winter as there appear
to be more demand drivers than
were apparent at the same time
last year.
Chief among them is the shut-
down of all 50 nuclear reactors
in J apan and public scepticism
over atomic power amid ongo-
ing problems managing radio-
active leaks at the Fukushima
plant, which was destroyed in
the devastating March 2011
earthquake.
While 13 reactors are cur-
rently awaiting approvals to
restart, progress has been slow
Clyde Russell and none are likely to come on-
line before year end. Three may
however start generating again
by LIe hrsL quurLer oI zo1q.
J apans LNG imports dropped
by 1.63 million tonnes, or 2.5
percenL, In LIe hrsL nIne monLIs
of the year compared to the
same period in 2012, according
to consultants Energy Aspects.
The drop was mainly due to a
3.1percent decline in electricity
output and a rising share for
couI-hred und Iydro generu-
tion, Energy Aspects said.
However, LNG imports may
Increuse In LIe hnuI quurLer us
utilities prepare for a winter
that may be colder than normal.
Also, last winter two nuclear
units were operating and this
is unlikely to be the case this
season.
There is a 40 percent chance
of lower-than-average tempera-
tures from November to Febru-
ary in three major regions, the
J apan Meteorological Agency
has said.
South Korea is also having
Issues wILI ILs nucIeur eeL,
with 100 people indicted in a
corruption scandal over fake
suIeLy cerLIhcuLIons.
Currently six of its 23 reactors
ure omIne und u decIsIon on
whether they can restart isnt
expected until late this year.
The country barely avoided
a repeat of the blackouts from
the summer of 2011 between
J une and August this year as it
cut power use in a nationwide
energy saving campaign.
This means that even a slightly
colder winter is likely to strain
the electricity grid and may lead
to higher LNG imports by the
worlds second-biggest buyer of
the chilled fuel.
South Korea bought 29.476
million tonnes of LNG in the
hrsL nIne monLIs oI LIe yeur, up
12.2 percent from a year ago.
China, Asias emerging LNG
buyer, may also have to turn to
buying more spot cargoes as the
countrys top economic plan-
ner has warned of natural gas
shortages this winter.
The National Development
and Reform Commission
(NDRC) said on October 21 it
would try to control the number
of new gas users to alleviate
shortages, amid concerns that
the country has been too suc-
cessful in encouraging a switch
to the cleaner fuel in order to
reduce pollution from burning
coal.
Chinas LNG imports in
LIe hrsL nIne monLIs oI zo1
jumped by a quarter from a year
earlier to 12.87 million tonnes.
The NDRC has also called
for state oil companies such as
China National Petroleum Corp
to speed up building LNG re-
gusIhcuLIon LermInuIs und ucL
Lo prevenL sIorLuges, eecLIveIy
giving the green light to more
LNG imports.
I ndia is also poised to buy
more cargoes, with state-run
utility GAI L I ndia Ltd saying
on October 25 it plans to buy
19 cargoes by March, of which
nine will be sourced from the
spot market.
Clyde Russell is a Reuters
market analyst. The views
expressed are his own.
Iiqueed naturaI gas (INC) storage tanks and a membrane-type tanker are seen at Tokyo EIectric Power Co's Futtsu ThermaI Power Station in
Futtsu, east of Tokyo.
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Myanmar Summary
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Myanmar Summary
Myanmar Business Today
REGIONAL BIZ
15
November 7-13, 2013
Thai PTTEP Seeks Hess Assets, Raising
Funding Concerns
Acquisition should boost output, but stretch balance sheet
Khettiya Jittapong and
Pisit Changplayngam
T
hailands top oil and gas
explorer PTT Exploration
and Production Pcl (PT-
TEP) is eyeing stakes in Hess
Corps assets in Thailand and
I ndonesia, in a move that will
boosL ILs uggIng ouLpuL buL
sLruIn ILs hnunces.
PTTEP may need to spend as
much as $3.9 billion to acquire
the interests of Hess in the two
countries, according to one ana-
lysts estimate. That may mean
more borrowing to supplement
the companys cash reserves,
raising its debt towards un-
healthy levels.
TIe ugsIIp compuny oI sLuLe-
controlled PTT Pcl, ranked
among Asias top 10 explorers,
is scouting for oil and gas assets
to boost energy security in fast-
growing Thailand. Southeast
Asias second-biggest economy
relies on natural gas to gener-
ate almost 70 percent of its
electricity.
We are interested in Hesss
assets because we are already
purLners In LIe Lwo TIuI heIds,
Chief Executive Tevin Vongvan-
ich told Reuters.
For assets in I ndonesia, this
is a good opportunity for us to
expand our investments in the
country where we already have
operations, Tevin said, without
giving details.
US energy company Hess is
selling its interests in I ndonesia
and Thailand, people familiar
with the matter have said.
TIIs Is LIe hrsL LIme PTTEP
Ius conhrmed ILs InLeresL In LIe
Hess assets.
Sources In LIe hnuncIuI Indus-
try said PTTEP has submitted
its bids for Hesss stakes in
uII Iour bIocks beIng oered,
including a 35 percent stake in
onshore Sinphuhorm in north-
eastern Thailand and 15 percent
In osIore PuIIIn heId.
TIe TIuI hrm IoIds zo per-
cent stake in Sinphuhorm and
45 percent in Pailin. I n I ndone-
sIu, LIe sLukes on oer ure LIe
Pangkah and Natuna A blocks.
I f PTTEP wins, it is likely to
seek a loan or issue bonds to
hnunce LIe ucquIsILIon, burden-
ing its balance sheet.
Hesss assets are estimated to
be worth around $3.2-$3.9 bil-
lion, DBS Vickers Securities an-
alyst Naphat Chantaraserekul
said in a note dated October
21. PTTEP should be able to
acquire assets with maximum
value of $3.3 billion to keep its
debt to equity ratio at below 0.5
times, he said.
This means it would be able
to come up with $3.3 billion
cash, but that would still be
short of our estimate. This and
other similar acquisitions will
burden its balance sheet, Na-
phat said.
As of September, PTTEP
had cash and cash equivalents
of $2.6 billion after it raised
$500 million from a bond is-
sue in September, it said in a
statement.
The company raised $3.1bil-
lion in the countrys biggest eq-
uILy suIe In IuLe zo1z Lo hnunce
its takeover of Cove Energy
as part of its global expansion
plans. That means another
equity issue should be unlikely
in the next few years.
PTTEP vies with big Chinese
oII hrms sucI us CNOOC und
Sinopec Corp and is seeking
to expand beyond its current
45 oil and gas exploration and
development projects. Reuters
Myanmar Summary
Tevin Vongvanich, chief executive ofcer of PTT ExpIoration and Production PcI, ThaiIand's top oiI and gas expIorer, taIks during an interview.
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November 7-13, 2013
Myanmar Business Today
REGIONAL BIZ
16
India Raises Interest Rates Again,
Wurns On Inution
I
ndias central bank raised
its policy interest rate for
the second time in as many
months on Tuesday last week,
wurnIng LIuL InuLIon Is IIkeIy
to remain elevated for the rest
oI LIe hscuI yeur, und roIIed
back an emergency measure
put in place in J uly to support
the slumping rupee.
The Reserve Bank of I ndia
(RBI ) lifted its policy repo rate
by 25 basis points (bps) to
7.75 percent, in line with the
expectations of most analysts
in a recent Reuters poll, despite
the risks to an economy beset by
sluggish growth.
Overall WPI (wholesale price
Index) InuLIon Is expecLed Lo
remain higher than current lev-
els through most of the remain-
ing part of the year, warranting
an appropriate policy response,
RBI Governor Raghuram Rajan
said in his review.
Rujun, u IIgI-prohIe Iormer
chief economist at the I nter-
national Monetary Fund, took
omce In eurIy SepLember und
sLunned murkeLs In IIs hrsL
policy review just weeks later by
raising interest rates to combat
herce prIce pressures doggIng
Asias third-largest economy.
Todays move was a
follow-through of the hawkish
September policy guidance as
IIgI und persIsLenL InuLIon Is
seen as an impediment to the
medium-term growth outlook,
said Radhika Rao, economist at
DBS in Singapore.
The new policy approach is a
single-minded focus to contain
Tony Munroe and
Suvashree Dey
Choudhury
InuLIonury expecLuLIons, wILI
or wILIouL supporL Irom hscuI
policy, she said.
I ndias benchmark 10-year
bond yield dropped as much as
6 basis points from before the
policy statement to 8.58 per-
cent. The rupee trimmed earlier
Iosses Lo Lrude uL on LIe duy.
AnnuuI Iood InuLIon ucceIer-
ated to 18.4 percent in Septem-
ber, its highest since mid-2010,
pushed up by prices of vegeta-
bles including onions and stir-
ring public discontent ahead of
national elections which must
be held by next May.
I ndias economy grew at 4.4
percent in the J une quarter, the
slowest since early 2009. The
5 percent growth rate recorded
In LIe IusL hscuI yeur LIrougI
March was the weakest in a
decade.
The RBI expects the economy
again to grow at 5 percent in the
currenL hscuI yeur LIuL ends In
March.
The headline wholesale price
index (WPI ) unexpectedly hit a
seven-month high in September
of 6.46 percent as food prices
surged, while the consumer
price index jumped an annual
9.84 percent.
The rupee slumped to record
lows in August, at one point
sliding some 20 percent for
the year, on concerns about
the countrys gaping current
uccounL und hscuI dehcILs, und
as global investors dumped
emerging market assets for fear
the US Federal Reserve was set
to start tapering its massive
stimulus programme.
Reuters
Myanmar Summary
S Korea Says Tax Revenue Conditions to Remain Tough
Fin min ofcial says tax conditions to be continuously difcult
Christine Kim
S
outh Korea will continue
to face taxation revenue
troubles in the near term,
u hnunce mInIsLry omcIuI
said last week, underscoring
President Park Geun-hyes
challenges in expanding social
welfare spending while reduc-
Ing LIe governmenL`s dehcIL.
When looking at our tax
revenue conditions, we expect
them to be continuously dif-
hcuIL, Jeong Eun-bo, depuLy
hnunce mInIsLer, suId uL u semI-
nar hosted by the Federation of
Korean Industries.
Demand for funding is explo-
sively increasing while increas-
ing taxes can only be limited
due to low birth rates and an
ageing population.
The Park administration faces
the tough task of reducing the
hscuI dehcIL wIIIe IIvIng up Lo
campaign pledges to increase
the social safety net to support
a rapidly ageing population.
An overly optimistic 2013
economic growth forecast set by
the previous administration has
left the government with what
it projects will be a tax revenue
shortfall of up to 8 trillion won
($7.5 billion) for the year.
As a result, Parks government
was forced to back away from
a goal to balance the budget
wILIIn Ier hve-yeur Lerm und
scaled back the monthly sub-
sidy programme for the elderly.
AILIougI hnunce mInIsLry
omcIuIs suy LIey were conservu-
tive in their 2014 projections
for 3.9 percent economic
growth and 218.5 trillion won in
tax revenue, some analysts say
such projections remain overly
optimistic.
The growth projection for
next year in of itself wont be
easy, and tax revenue for next
year will likely be undercut by
the weak property market as
well as the fact that much of next
years tax revenue will be based
on this years economic activ-
ity, said SK Securities analyst
Yum Sang-hoon. Reuters
Myanmar Summary
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A security guard stands in the lobby of the Reserve Bank of India (RBI) headquarters in Mumbai.
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Myanmar Business Today
INTERNATIONAL BIZ
17
November 7-13, 2013
Contd. P 8...(Mongolia)
Wull Street's Love AHuir Hinges on Mobile
Alexei Oreskovic
F
ucebook hnuIIy eurned
Wall Street's love in the
second quarter. Now it
needs to make the relationship
last.
Its shares have doubled in just
the last three months, buoyed
by an increasing belief among
investors that Facebook has
hnuIIy sLruck u wInnIng IormuIu
in mobile advertising.
But experts warn that the
social networking giant has to
handily beat Wall Street targets
due to high expectations.
"They've got to prove to inves-
tors that they can continue with
the growth they demonstrated
from the last quarter," said Bob
Bacarella, portfolio manager of
the Monetta Fund, which owns
Facebook shares. "From the
way the stock is priced today,
the expectations are gener-
ally that they will beat or exceed
numbers handily."
Revenue from mobile ad-
vertising will be the centre of
attention.
Wall Street analysts expect
Facebook to grow its mobile
revenue uL IeusL hve-IoId Irom
the year-ago period, with many
"omcIuI" esLImuLes rungIng
between $760 million and $840
million. But there are signs that
investors are privately hoping
for an even bigger number.
"What I've been telling folks is
that, in general, $850 million-
plus is the number that's
needed, maybe even $900 mil-
lion-plus," said Ben Schachter,
an analyst with Macquarie
Research, whose own estimate
calls for $836 million in mobile
ad revenue.
Facebook has regained Wall
SLreeL's conhdence sInce u
rocky IPO that left its shares
IunguIsIIng under LIeIr oerIng
price for more than a year.
Along with Google Inc, which
reported strong quarterly rev-
enue growth earlier this month,
and soon-to-IPO Twitter, Fa-
cebook is now considered one
of the Internet companies best
posILIoned Lo benehL Irom LIe
shift to mobile advertising.
The "newsfeed" ads that Fa-
cebook has introduced over the
past year inject marketing mes-
sages straight into a user's
stream of news and content.
They are ideally suited for the
smaller screens of smartphones,
which consumers increasingly
use to access the Web.
"Facebook has done itself
quite a good turn by listening to
investors and giving them what
they're looking for, which is
increasing mobile ad revenue,"
said Wedbush Securities ana-
lyst Michael Pachter.
Besides mobile ad revenue,
investors will be keen to hear
management provide details
about other money-making ini-
tiatives, particularly video ads,
and new ads that the company
is rolling out to monetize its
popular Instagram photo-
sharing service.
Big brands including Adidas,
Lexus and Levi's will begin run-
ning ads on Instagram in com-
ing weeks, Facebook has said.
RBC Capital Markets analyst
Mark Mahaney estimated in a
recent note to investors that In-
stagram could "monetize users
at a rate of roughly one-third
that of Facebook."
That means Instagram could
generate roughly $1.7 billion in
revenue in 2015, accounting for
13 percent of Facebook's total
revenue, Mahaney wrote.
Improvements in Facebook's
existing ad business, including
developing better techniques
Ior LurgeLIng uds uL dIerenL
groups of its 1.15 billion users,
could also boost revenue, said
Steve Weinstein, an analyst at
ITG Investment Research.
"Even small improvements in
ad click-through rates can be
a material driver to their busi-
ness," said Weinstein. "I don't
think they need to jam a lot
more ads into the experience, as
much as they need to continue
to deliver more relevant ads."
Reuters
Myanmar Summary
Mongolia Pushing for Rail, Pipeline Links with China, Russia
David Stanway
M
ongolia has agreed to
establish a working
group with China to
oversee the construction of new
road, rail and pipeline infra-
structure connecting the two
countries with Russia, a mem-
ber of a Mongolian government
delegation to Beijing said.
TIe omcIuI, speukIng Lo Reu-
ters on condition of anonymity,
said landlocked Mongolia aimed
to become a transit corridor to
facilitate trade between its two
giant neighbours and reduce
the costs of delivering Rus-
sian commodities like oil and
natural gas to energy-hungry
Chinese markets.
The topic was high on the
agenda during talks between
Mongolian Prime Minister
Norov Altanhayag and his Chi-
nese counterpart, Li Keqiang,
last week, according to the of-
hcIuI, wIo Is u senIor udvIser Lo
Mongolias economics ministry.
Speaking by phone from the
Mongolian capital, Ulan Ba-
tor, he said the working group
would probably be set up soon
and that Mongolia was open to
uIIowIng CIInese hrms Lo InvesL
and build the infrastructure.
Given the capacity that both
countries can bring to the table,
China is expected to be heavily
InvoIved In Lerms oI hnuncIuI
resources and technology, he
said.
Soaring Chinese demand
for commodities like coal has
underwritten Mongolias rapid
growth, with more than 90 per-
cent of its exports sold to China.
But Beijings growing eco-
nomic hegemony has caused
disquiet among Mongolian law-
makers, with a decline in foreign
investment last year caused in
part by a hastily drafted law
to limit foreign ownership in
strategic sectors.
The law was designed to block
eorLs by CIInu`s sLuLe-owned
Chalco Group to acquire a
majority stake in Mongolian-
based coal miner South Gobi
Resources.
BuL LIe omcIuI suId sucI Ieurs
had now abated.
The atmosphere is more ma-
ture now, and that implies that
there should be a pragmatic
approach to economic relations
with our two neighbours, and
we hope that the investment
community will also recognise
this subtle shift, he said.
There was such a (negative)
current of thought in 2010 and
2011 Mongolia has never
experienced such rapid indus-
trialisation based on mining,
and so of course we had to look
A boy walks at an area known as a ger district, where some residents live in traditional Mongolian tents, in Ulan Bator.
C
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.~~:.~ ..,..~:_...:.
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.q._.
November 7-13, 2013
Myanmar Business Today
INTERNATIONAL BIZ
18
New Australian Government Upholds
Bun on Chinu's Houwei
A
ustralias newly elected
conservative govern-
ment is upholding a ban
on Chinas Huawei Technolo-
gies Co Ltd from bidding for
work on the countrys $38
billion National Broadband
Network (NBN), the attorney-
general said last week.
The former Labour govern-
ment cited cyber-security con-
cerns when it banned Huawei,
the worlds largest supplier of
telecom network equipment
by revenue, from bidding for
contracts on the infrastructure
rollout last year.
Some senIor omcIuIs In LIe
new Liberal-led Coalition gov-
ernment, including Communi-
cations Minister Malcolm Turn-
bull, had supported a review of
the ban, raising expectations it
would be scrapped.
But Attorney-General George
Brandis said the government
had decided not to change the
poIIcy, cILIng new brIehngs Irom
Australias national security
agencies.
Since the election the new
government has had further
brIehngs Irom LIe nuLIonuI
security agencies. No decision
has been made by the new gov-
ernment to change the existing
policy, Brandis said in an email
to Reuters.
The decision of the previ-
ous government not to permit
Huawei to tender for the NBN
was made on advice from the
national security agencies.
That decision was supported
by the then opposition after we
receIved our own brIehngs Irom
those agencies, he said.
The government would not
comment on advice from the
national security agencies, he
added.
China, a major trading part-
ner in the midst of negotiations
on a free-trade agreement with
Australia, expressed concern.
We...consistently oppose us-
ing national security concerns
as a pretext to interfere with the
two countries normal economic
cooperation, Chinese Foreign
Ministry spokeswoman Hua
Chunying told a daily news
brIehng In BeIjIng.
We hope all sides can make
joInL eorLs Lo enguge In normuI
cooperation and create good
conditions for each others
companies on the basis of
market principles and on the
foundation of mutual respect
and equality.
The move could please
Australias traditional ally, the
United States, where lawmakers
have warned against awarding
Huawei major contracts over
spying fears.
The US House Intelligence
Committee last year described
Huawei as a national secu-
rity threat and urged American
hrms Lo sLop doIng busIness
with the Shenzhen-based com-
pany. Huawei has denied the
US allegations that its equip-
ment could be used by Beijing
for espionage.
The British government said
in July that checks on Huaweis
role in British telecommunica-
tions infrastructure had been
InsumcIenLIy robusL In LIe
past, and announced a review
of security at a cyber centre
the company runs in southern
England.
Huawei spokesman Jeremy
Mitchell said the company be-
lieved the Australian govern-
ment was still reviewing its
policy.
Huaweis understanding is
that no decision has been made
regarding the NBN and that the
review is ongoing, Mitchell said
in an emailed response after
Brandis released his statement.
HuuweI Ius become u sIgnIh-
cant market force in Australia.
It supplies equipment to Sin-
gapore Telecoms local unit
Optus as well as Vodafone,
and has conducted trials with
Australias biggest telecom
company, Telstra Corp Ltd. It
also employed former senior
IberuI PurLy omcIuIs us purL oI
ILs IobbyIng eorL Lo overLurn
Australias ban.
The company, founded in
1987 by former Peoples Libera-
LIon Army omcer Ren ZIengIeI,
last year proposed building a
cyber security evaluation centre
in Australia.
Reuters
Myanmar Summary
at the security implications.
Now the people are more com-
fortable working with our two
neighbours.
Mongolia had ambitions to
become Chinas top coking
coal supplier, largely through
the development of one of the
worlds biggest untapped mines
at Tavan Tolgoi, near the Chi-
nese border.
But Mongolia has complained
that it has not received fair
value for the coal, arguing that
the lack of alternative buyers
uIIows CIInese hrms Lo drIve
down prices. A dispute with
Chalco, which signed a supply
deal with Tavan Tolgoi in 2011,
has contributed to a decline in
coal shipments this year.
Mongolia hopes improved in-
frastructure will allow it to gen-
erate more revenue from its coal
sector. A rail link to the Russian
far east is under construction
and half of a direct rail line
into China has been completed,
with the project scheduled to be
hnIsIed by zo1.
From page ;... (Mongolia)
TIe omcIuI suId LIuL Mongo-
lias state-owned railway opera-
tor signed a memorandum of
understanding with Chinas big-
gest coal producer, the Shenhua
Group, last week on building
cross-border railways to help
deliver coal. Shenhua was not
immediately available to com-
ment on the matter. Reuters
Myanmar Summary
R
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_..._~...- ~...q..e.,
~. . ~..: ~..q~.,_e ~, ~ .
- Huawei Technologies Co Ltd
~:. ~..q~,..'.: , .e
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~:._.. .~ ~ , .. . .. _.:.._~:
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. ._.:.q...q. Hua Chunying
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Myanmar Business Today
INVESTMENT & FINANCE
19
November 7-13, 2013
Myanmar Summary
Contd. P zo...(Visa)
Sacks of Cash in Myanmar Hard to
Rout for MasterCard, Visa
Sanat Vallikappen
A
year ago, Myanmar had
no automated teller ma-
chines and not a single
hotel or restaurant able to swipe
LIe credIL curds proered by
throngs of foreigners arriving in
the newly opened country, who
instead had to bring crisp US
dollars to pay for everything in
cash.
It has come a long way since:
2,500 credit- and debit-card
machines, known as point-of-
sale terminals, and 450 ATMs
including at least three at the
gates of Yangons Shwedagon
Pagoda, according to Kanbawza
Bank Ltd, known as KBZ, the
countrys largest privately
owned bank.
The absolute need to carry
bags of cash is declining, said
Matt Davies, the International
Monetary Funds mission chief
Lo Myunmur, wIo hrsL LruveIIed
to the country from Washington
in November before there were
any such machines, and said he
still cant fully rely on plastic.
It takes time for practices to
change. Myanmar remains a
cash economy and will continue
to be a cash economy for some
time.
Not if Visa Inc and MasterCard
Inc have their way. MasterCard
began signing up Myanmar
banks starting in September
2012 and has so far licensed
seven, which in turn have
installed payment terminals
taking MasterCard at 285 mer-
chants including the Strand and
the Governors Residence hotels
In LIe hnuncIuI cupILuI Yungon,
according to data provided by
the Purchase, New York-based
company. About 210 ATMs
also accept MasterCard for cash
withdrawals, with at least 130 of
those in Yangon.
Chi nas Uni onPay
Visa has licensed eight banks,
which have enlisted 550 mer-
chants including hotels, restau-
rants, travel agencies, airlines,
retail stores and souvenir shops
frequented by tourists, and
more than 200 ATMs, data
from the Foster City, California-
based company show.
Myanmars remaining 1,665
payment machines accept
cards from Shanghai-based
UnionPay, Chinas payment
network that has expanded to
141 countries in the past decade
to become the worlds second-
largest by volume behind Visa,
as well as locally issued debit
cards. These payments use a
local electronic network, My-
anmar Payment Union, set up
in September 2012 by 17 local
banks and the Central Bank of
Myanmar, which doesnt yet
permit the banks to issue credit
cards.
About a year before the local
network began, some banks
led by Co-Operative Bank Ltd,
a privately owned Myanmar
lender known as CB Bank, set
up ATMs for cash withdrawals
by Myanmar nationals, said
Thein Zaw, a former deputy
director general at the Central
Bank of Myanmar.
Ver y Low
While the numbers may
look large, they are very low
compared with the needs of
arriving tourists and business
people, said Aung Thura, chief
execuLIve omcer oI TIuru SwIss
Ltd, a Yangon-based market
reseurcI und consuILIng hrm Ior
companies entering Myanmar.
Even where cards are accepted,
payment terminals often dont
work and are hindered by poor
internet and telephone con-
nectivity and power supply, he
said.
The general advice to tourists
and business travellers is to
bring in your clean dollar notes
because you might not be able
to get money from ATMs, said
Aung Thura. Even if you have
your cards, you always have
to think about the backup, he
said, recalling an experience in
July when he tried to use his
locally issued debit card at a
restaurant and the telephone
line didnt connect.
These places where cards
are accepted are places tourists
frequent, but I dont think its
really embedded in the normal
day-to-day transactions of local
businesses, said Kelly Hattel, a
hnuncIuI-IndusLry specIuIIsL uL
Manila-based Asian Develop-
ment Bank, who travelled to
Myanmar for the fourth time
this year in late September.
Hi gh Fees
While she was able to use her
credit card at the Yangon hotel
where she stayed, she had to
pay in cash for her room in Nay
Pyi Taw, the countrys political
capital 215 miles (350 kilome-
tres) north of Yangon. Almost
all Myanmar merchants accept
Contd. P zo...(Visa)
.,...: ~....,~ _.,.:.
~ ..~.~e. _.......
._ .~.:..q... e~e.
.:...:~ . .:.~ ._ . _., .:.
. .q:~q.:._ ._.:..:..:.
~~~.q~..~~.:.~ .~..
.. ,.~~.,_e _.,.:..
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~.: ~..:...q._~:. .q
._..~.:.~_.:.~..:...q
._ ~._.~.,. : ~_e_ ._e_ .~. .
._.: .. .:. _. _e. ._~: . ~_._ _._
. q:. ._~.q, . . ~e . ~_~ .~~
~.._e.. Matt Davies ~ ._.:
_~:..._.
_., .:. ~.,_e e. ~.| . ._~.
~, ..: . ~. .~ e. ~~ . .
~.~~.:..:._. ...~:..,
.:._ ~._.~.,~. q. . ._.: ..
q ,~~ ~ ~. ,eq..__e.._~:.
_., .:. ~.,_e ~. , ~~ .~~:
~..~ ..:.~.._..~ .~
.~ ~ . ..,q .._ _e. ._~: .._ .
.q._. Visa Inc . MasterCard
Inc ~._ _.,.:.. .q:~q.:
._.. _.,.:.- .._~.~,..:.
~_~ e _e .~ .~~ .:q, _~ ... ..,
_.. .~~ ~. ~~ .:.~ ._. ~. ._.
. q, ~~ ~ ..: q ~ . _~._ . Visa
. ~ .~ .._...:..
_.. ._.:..:..:. .:..q:~..q
_~._ e ~e .:. .:...:~ . .:.
.q..:..~..:. ..._~:...
.:. .~...:.. ~.~~q.~
..: .. _ .. .:.~ . ._~.~, ..:
. .:.~:. . . ~. ._...:.. .:..q,
_~......_~:. .q._.
_.,.:.- .......~ ~'' .
. q ,e.~._..~ UnionPay -
......~~.:.~._. .~.:.
._~: . . q._ .~, ~ . - . ...
...~,q~.:.._ .,...: .e
...~~. ...|. ~,~ .~
_e,~~....::._.. ..:~~:.
_e ~.:.~e~_~... .......
~ , q~ . . , ._~ .~. . _e. .:._~: .
.q._. Co-Operative Bank Ltd
. ~.~.:.~.,_e _._~.
.......~,q~~._. .~._..
.~~~..~.:.~._. ~.._..
q, _~......_.
_., .:. . . _.:..:..:. . .. :.
.q.. . , .q .:.. ~. :. _ .q.._
.:..q:~q.:.. : ~.,.:._.:..:
..: ._ . . ._~.~, ..: . ~ ~.
._..:. q, ~~ ~ ~.:~ ~. .:.
. : ,_ ..,...._~:. q, ~ , ~._.. ~
US dollars as long as bills are
unworn. She also had to pay
$500 in cash to the travel agent
who arranged her domestic
round-LrIp IgIL und cur sIe
hired in the capital.
That was frustrating, she
said.
Fees to get cash locally can
add up. Withdrawals are lim-
ited to K300,000 ($310) per
transaction, and banks charge
K5,000 to use an ATM on top
of any fees charged by travel-
lers home banks, according to
San Dar Tun, a manager in the
cards department at CB Bank.
A maximum daily withdrawal,
limited to K1 million, would cost
a minimum of $20.60 in ATM
fees. ATMs dispense only local
currency. The resulting pile of
cusI wouId be Loo Iurge Lo hL
in a wallet and would require a
tote bag.
Looseni ng Contr ols
A credit card issued by HSBC
Holdings Plc in Singapore
used to get cash at an ATM in
Myanmar, regardless of which
payment network it operates
on, will incur a cash-advance
fee of 5 percent of the amount
withdrawn, a 1.5 percent admin-
istrative charge for a foreign-
currency transaction and a mini-
mum of 2 percent per month on
the amount withdrawn until its
repaid, according to the banks
website. Charges for overseas
cash withdrawals vary by issuing
bank and locale.
A Kanbawza (KBZ) Bank staff member is pictured through stacks of kyat notes in Yangon.
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These places where cards are ac-
cepted are places tourists frequent, but
I dont think its really embedded in the
normal day-to-day transactions of local
businesses.
November 7-13, 2013
Myanmar Business Today
INVESTMENT & FINANCE
20
From page j...(Visa)
Contd. P z...(Visa)
From page j...(Visa)
Myanmar President Thein
Sein has expanded political
freedom and loosened eco-
nomic controls since coming
to power two years ago. That
prompted the easing of Euro-
pean Union and US sanctions
on the country starting last
year and allowed, among other
things, the transfer of funds
from the US or by an American
to Myanmar, and the setting up
of business by US companies
including Visa, MasterCard and
American Express.
Vi r tually Zer o
For Visa, the worlds biggest
payment network, the immedi-
ate goal is to increase card ac-
ceptance among merchants and
ATMs to support the travel and
hospitality industries for the
expecLed Inux oI vIsILors Lo LIe
2013 Southeast Asian Games
to be held in Myanmar in De-
cember, according to Bangkok-
based Somboon Krobteeranon,
country manager for Myanmar
and Thailand. He didnt elabo-
rate on the companys growth
targets for the country.
Visa and MasterCard pro-
cessed about $7 trillion in
credit-and debit-card purchases
worldwide in the 12 months
ended June 30, according to
company data. Visa reported
$10 million in purchases and
cash withdrawals since its
payment network began in
Myanmar in December through
October 9.
MasterCard doesnt break
out a number, except to call it
virtually zero, according to
Matthew Driver, MasterCards
Southeast Asia president in
Singapore. That compares with
40 percent of global retail sales
settled using cards, according
to a September study by the
company.
Fer ti le Gr ound
Countries such as Myanmar
are fertile battlegrounds for
MasterCard to wage its war
on cash, which Ajay Banga
declared in September 2010
after taking over as chief execu-
LIve omcer. MusLerCurd greeLs
travellers arriving at Yangon
International Airport with ad-
vertisements encouraging them
to withdraw currency from
ATMs using its network.
Were really starting at
ground zero in terms of the huge
amount of cash there is in the
system, Driver said. Its going
to be a long-haul play and may
Luke hve Lo 1o yeurs unLII peopIe
start to be comfortable for us
to really broaden out things to
u sIgnIhcunL kInd oI scuIe com-
pared to where it is today.
Neighbouring Thailand, with
a population of 68 million com-
pared with a similar number in
Myanmar, has 47,759 ATMs,
and 264,236 Thai merchants
have payment terminals, ac-
cording to the Bank of Thailand.
Along with UnionPay, Japans
JCB Co has also aligned itself
with the local payment network,
which planned to start accept-
ing the Japanese cards later this
month, according to Zaw Lin
Htut, senior general manager
in charge of the international
banking division at KBZ.
Thr ee Machi nes
MasterCard and Visa each
run networks in the country,
requiring merchants to install
three separate card-payment
machines to be able to accept
all international credit and local
debit cards.
American Express Co, the
biggest US credit-card issuer by
customer spending and opera-
tor of its own global-payment
network, began working last
yeur Lo hnd mercIunLs Lo uccepL
its cards, according to Fritz
Quinn, a spokesman in Sydney
for the New York-based compa-
ny, who declined to disclose the
number. The Governors Resi-
dence hotel accepts AmEx cards
with a 5 percent surcharge.
Poor telephone connectivity
and electricity supply are deter-
ring faster adoption. So is a fee
that some merchants pass on to
card users, which a June report
from management consultancy
McKinsey & Co puts at 4 per-
cent of the purchase price on
average.
Telephone Li nes
Many telephone lines date
from circa 1950 or 1960 and
dont support data transmis-
sion, said Anton Corro, Master-
Cards Bangkok-based country
manager for Thailand and
Myanmar.
Myanmar, also known as
Burma, has the lowest pen-
etration of telecommunications
infrastructure in Southeast
Asia, according to the McK-
insey report. Only 13 percent
of the population has access
to electricity, compared with
99 percent in China, Malaysia
and Thailand, according to the
report.
We tell customers that well
swipe the card with pleasure,
but we cannot guarantee the
line will work, said Cherie
Aung-Khin, owner of the Green
Elephant restaurant in Yangon,
which is popular with foreign
visitors.
The Green Elephant was the
hrsL esLubIIsImenL In Myunmur
to accept a Visa card, in Janu-
ary, according to a statement by
the payment processor. About
$50 of the restaurants average
daily sales of $800 is paid for
via Visa, said Zayar Latt Han,
the restaurants food and bever-
uge omcer.
Travel agents still give tour-
ists instructions to bring lots of
cash when they come to Myan-
mar, Aung-Khin said.
Cash Aboar d
The Road to Mandalay, an
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$840-a-night cruise operated
on the Irrawaddy river, also
known as the Ayeyarwady, by
Orient-Express Hotels Ltd car-
ries the equivalent of $50,000
to $100,000 worth of kyat,
said Thomas Henseler, gen-
eral manager of the Governors
Residence, also operated by
Orient-Express.
The large stash of cash is kept
aboard the luxury boat in a safe
and pays for food and supplies
en route, between the ancient
ruins of Bagan and the Chinese-
Inuenced norLIern cILy oI
Mandalay, he said.
Everythings paid for in cash
in Myanmar, Henseler said,
pointing to the low level of elec-
tronic payments and banking
in the country. Even gold and
gems are stored in the pillow
case.
Fewer than 10 percent of
Myanmar nationals have access
to banking services, said Zaw
Lin Htut of KBZ. Outside of
Yangon, installation of ATMs
and point-of-sale machines is
limited mostly to Mandalay and
Nay Pyi Taw, the IMFs Davies
said.
All these systems will ulti-
mately be used by the people
of Myanmar when they are
allowed to use credit cards and
more of them have access to
banks, Davies said.
Banki ng Cr i si s
Myanmars central bank
doesnt allow local banks to
issue credit cards because it
constitutes unsecured lending
and had threatened the stabil-
ity of the economy in 2003,
said Win Htein Min, deputy di-
recLor oI hnuncIuI-InsLILuLIons
supervision at the Central Bank
of Myanmar.
An empIoyee stands behind a MasterCard Iogo during the Iaunch of the internationaI credit card issuer's rst ATM transaction in Myanmar, in
Yangon.
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The general advice to tourists
and business travellers is to
bring in your clean dollar notes
because you might not be able
to get money from ATMs. Even
if you have your cards, you
always have to think about the
backup.
Myanmar Business Today
INVESTMENT & FINANCE
21
November 7-13, 2013
From page zo...(Visa)
Asia Wealth Bank and My-
unmur Muyower Bunk, LIe
two largest in the country at
the time, collapsed that year,
following a bank run, he said.
Starting on February 6, 2003,
people rushed to withdraw
their money after the failure
oI severuI non-bunkIng hnun-
cial companies that accepted
deposits at rates higher than
LIose oered by Ienders Lo
hnunce InvesLmenLs In reuI
estate, construction, trading
and manufacturing. Myanmar
allowed privately owned banks
in 1992 and had 20 of them with
350 branches in early 2003.
A few of the private banks
that operated in 2003 were
faced with a liquidity shortfall,
and they could not collect their
money from cardholders, Win
Htein Min said.
ATM Shutdown
Locally issued credit cards
were barred and ATMs that
existed then were shut down,
said Thein Zaw, formerly of
the central bank and now vice
chairman of Myanmars newly
licensed Construction and
Housing Development Bank
Ltd.
Recently, the central bank
allowed the issuance of pre-
paid debit cards for Myanmar
residents travelling overseas.
On October 8, MasterCard
partnered with CB Bank to
InLroduce LIe hrsL sucI curds,
which can be reloaded.
In February, the US author-
ized transactions involving
Myanmars privately owned
Asia Green Development Bank
Ltd and Ayeyarwady Bank
Ltd, and state-owned Myanma
Economic Bank and Myanma
Investment & Commercial
Bank, which were previously on
a US blacklist barring US-linked
companies from doing business
with them. Several Myanmar
banks remain on the list.
Plasti c Bags
ATM use is slow to catch on.
CB Bank, the countrys third-
largest private lender by assets
with more than 100 ATMs,
sees only 0.2 percent of the
K20 billion withdrawn from
its branches daily via ATMs,
said Pe Myint, a Yangon-based
managing director of the bank.
Used to banking in person,
customers prefer taking out
cash from deposit windows
and carrying it in plastic bags,
he said in an interview in his
second-oor omce jusL ubove
the banks primary branch,
which is strewn with bundles
oI kyuL noLes on LIe oor us
workers put them through the
20 counting machines.
Card acceptance has helped
improve business at shops that
cater to tourists. Nandawun
Souvenir Shop & Myanmar Book
Centre, a Yangon store which
sells items including gems, jewel-
lery, lacquer ware, traditional
clothing and paintings, installed
machines that accept Master-
Card and Visa in February, said
owner Thant Thaw Kaung.
Electronic payments have
contributed to 50 percent of
the stores increase in sales in
LIe hrsL eIgIL monLIs oI LIIs
year compared with a year ear-
lier, as customers are no longer
hindered by not having enough
cash, he said.
Easi er Payment
Especially when buying high-
value products such as gems
and jewellery, tourists consider
it a lot easier to pay with a card,
he said.
When Hattel of ADB visited
Yangons Scott Market, 300
meters (330 yards) from
Shangri-La Asia Ltds Traders
Hotel, where she stayed on her
most-recent visit, she said she
was surprised to see little tiny
shops, little jewellery counters
accepting MasterCard and Visa.
I would suspect that not a lot
of people would know that, she
said. Most people probably still
think they need to carry cash.
Traders Hotel, where a US
Embassy travel alert said an
American tourist was injured
about midnight October 15 by
one of several bombs that ex-
ploded around Myanmar, still
doesnt have a machine that
allows credit-card payments.
Customers who pay with plastic
authorise electronic payment
by signing a form that bears
the card number and amount,
which gets sent by e-mail to
Singapore and processed by a
third party.
Cli ent Ser vi ce
We started this in April last
year as a service to our clients,
many of whom did not know
that Myanmar didnt accept
credit cards, said Phillip
Couvaras, general manager of
the hotel owned by Malaysian
billionaire Robert Kuok.
Though engaged in talks with
six banks on the installation of
a payment terminal for about
three months, Couvaras says
no bank was able to show him
a single machine that handles
both Visa and MasterCard,
which has delayed the process.
Couvaras may have found his
answer in CB Bank, which has
just enabled a single machine
to process both Visa and Mas-
terCard, according to the banks
San Dar Tun.
Such incremental changes are
being made every day, said the
IMFs Davies.
Its very impressive, what the
country has been able to do in
such a short period of time, he
said.
Bloomberg
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November 7-13, 2013
Myanmar Business Today
INVESTMENT & FINANCE
22
Follow The Smart Money
David Mayes
T
here is an investment
strategy that I have al-
ways liked that involves
following what is known as
the smart money. This might
sound like it is the opposite of
what I am normally rambling on
about, since my main approach
to markets is to go against the
Ierd. TIe bIg dIerence Iere Is
that the smart money is not the
herd, and is in fact very often
going against the herd.
The smart money is basically
the big players in the markets,
or the insiders of a company.
Obviously insider trading is il-
legal and unethical, but that is
not what this strategy is about.
Executives of a company are in
fact allowed to trade in the stock
oI LIeIr own hrm, buL IL cunnoL
be based on material non-public
InIormuLIon. TIey musL hIe
all of their activities regarding
their trading activities with the
SEC and you can then go online
and access this information. Big
InsLILuLIons uIso hIe LIeIr ucLIvI-
ties with the SEC, and between
these two sources you can get
a very good idea of what the
smart money is doing.
Obviously if the insiders are
buying like crazy, it means they
IeeI very conhdenL ubouL LIe
future prospects enough to put
their own money at stake. Since
they will have far greater insight
into the business than any ana-
lyst, this is a snapshot of what
the most informed investors in
a company really believe, re-
gardless of what they are bound
by hducIury duLy Lo sIureIoId-
ers to say in the press. A CEO
will never come out in the press
and say, We are doomed, the
end is near, and I fear we will be
bankrupt within a few years.
However, if the CEO really feels
that way, it will surely show up
In IIs SEC hIIngs us Ie wIII be
selling his company stock as ag-
gressively as is legally possible.
Of course the reality is often
far between either of the polar
extremes, but if you monitor a
compuny`s hIIngs und uII oI u
sudden insider selling spikes
up, this is as good of a signal to
sell as you will ever receive from
the stock market. This also ap-
plies to the market as a whole as
well, and the data is compiled
and ratios are out there to
guuge LIe overuII conhdence oI
the insiders of the market as
a whole. Again, when overall
insider selling gets high, this is
a very strong sell signal.
There is no foolproof strat-
egy or catch all indicator un-
fortunately, and there is a good
chance something happens
which even catches the bright-
est and best of the business
worId compIeLeIy o guurd. n
this case insider transactions
would likely be misleading, and
also there is a lag between when
they sell and when the data be-
comes made public. However,
if you pay attention to what the
smart money is doing in combi-
nation with the other elements
of your overall strategy, you are
more likely to be on the right
side of the larger market moves.
David Mayes MBA provides
wealth management services to
expatriates throughout South
East Asia, focusing on UK
Pension Transfers. He can be
reached at david.m@faramond.
com. Faramond UK is regulated
by the FCA and provides advice
on pensions and taxation. Views
expressed here are his own.
Myanmar Summary
B
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e ..'..: ,_ .- e:~. q. ~:.
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Myanmar Business Today
INVESTMENT & FINANCE
23
November 7-13, 2013
Travel Insurances Surge
T
he number of travel
insurance issued by
state-run Myanmar
Insurance Enterprise
(MIE) has surged in the
recent months thanks to
un Inux oI LourIsLs und
foreign businesspeople, a
senIor ME omcIuI suId.
Increasing foreign
investment and the up-
coming 27th SEA Games
are resulting in more
insurance issued at the
MIE, U Sein Min, general
manager of MIE said.
Before the former
military government
launched a sweeping
nationalisation in 1963,
there were more than 70
local and foreign private
insurance companies
operating in Myanmar.
Only MIE has been doing
insurance business since
then.
As the country trans-
forms from decades-long
military rule, more eco-
nomic reforms are going
to boost the insurance
sector, he added.
Phyu Thit Lwin MIE received premiums
worth K25 billion ($25.77
mIIIIon) In zo11-1z hnun-
cial year and K47 billion
($48.45 million) for the
2012-13 FY.
Now, ME oers q6
dIerenL cIusses oI Insur-
unce, hre Insurunce beIng
the most popular and life
insurance being the least
issued.
Myanmar will allow
foreign investors into
its insurance sector by
around 2015 once local
private insurers have had
time to establish them-
selves, U Maung Maung
Thein, deputy minister
Ior hnunce, suId In Sep-
tember, after the head of
Prudential Plc, Britains
leading insurer, expressed
interest in Myanmar.
In September, for the
hrsL LIme In more LIun o
years, 12 private insur-
ance companies were
given conditional ap-
proval to start operating
by the Insurance Busi-
ness Supervisory Board
(IBSB).
As Western economies
slow and the developed
economies in Asia be-
come saturated, insurers
are increasingly turning
to Southeast Asia, drawn
by its growing middle
classes and lack of insur-
ance policy holders.
Banks Urged to Invest
Sensibly in Dawei
B
anks investing in the Dawei project should
only back projects that are socially and envi-
ronmentally sustainable, a local environmen-
tal group said at a seminar in Bangkok recently.
Bo Bo, a representative from the Dawei Develop-
ment Association (DDA) and a resident in the area
where the Dawei SEZ will be developed, said that
only light industries with responsible investment
should be allowed in the project, but that petro-
cIemIcuI, oII und gus osIore, us weII us couI und LIn
mining projects should be banned.
He added that he had doubts whether local people
wouId ucLuuIIy benehL Irom InvesLmenLs In LIe ureu.
So much gas [from Myanmar] goes to Thailand,
but we Dawei people have to pay about 16-17 baht
[$0.50] per unit of electricity, which is very expen-
sive, he said.
Also at the event, scholars and organisations
urged Thai companies to uphold human rights and
environmental issues when investing in Myanmar,
since the countrys legal system is not yet up to
international standards.
Oliver Slow
Myanmar Summary
Myanmar Summary
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FEC Holders Given New
Deadline to Exchange
T
he deadline for exchanging Foreign Exchange
CerLIhcuLes (EC) Ior US DoIIurs or kyuL Ius
been put back to March 31 2014, the Central
Bank of Myanmar has said.
FEC holders who wish to exchange their cer-
LIhcuLes, wIIcI ure equIvuIenL Lo US DoIIurs, musL
submit a written letter with a reason explaining why
they were not able to meet the original deadline of
June 30.
EC wus hrsL InLroduced In 1qq, buL In MurcI
this year the Myanmar government approved the
proposal to abolish the FEC.
Foreign exchange rates alter if we use FEC as a
medium. The exchange programme will phase out
the FEC, said U Win Shein, minister for Finance
and Revenue.
As of December 2012, there were 30.92 units of
FEC (1 FEC = $1) in circulation in Myanmar, ac-
cording to the central bank.
Su Su
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Myanmar Summary
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November 7-13, 2013
Myanmar Business Today
24
INTERNATIONAL AND DOMESTIC FLIGHT SCHEDULE
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 3 5 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 3 5 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir
TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:00 6:00 Dragon Air KA250 1 3 5 7 HKG RGN 21:20 23:35 Dragon Air
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT YGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT YGN 13:00 14:00 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT YGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT YGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT YGN 17:00 18:00 FMI Air Charter
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY YGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY YGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY YGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY YGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY YGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY YGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY YGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY YGN 16:00 17:25 Asian Wings
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
Myanmar Business Today
PROPERTY & REAL ESTATE
25
November 7-13, 2013
Contd. P 26...(Pun Hlaing)
An Ousis in Yungon's Hoosing Murket
Y
angons Hlaing Thayar
township, located on
the western side of the
Hlaing River, has long been
recognised as an industrial
hub of the city. The industrial
zone located in the township is
well-known, while all along its
streets lie dozens of factories,
manufacturing products includ-
ing whisky and soy-based food.
Yet in 2000, property tycoon
Serge Pun recognised an oppor-
tunity to use the large, vacant
space in the area to develop
a high-class golf and housing
estate.
The Pun Hlaing Golf Estate
opened as a 9-hole golf course
with a few houses at the turn
of the century, but has since
developed to include an 18-hole
golf course designed by golf-
ing legend Gary Player as well
as a hospital, a nearby school,
a spa, tennis courts, swimming
pools and high-quality housing
for about 300 people.
Yungon wus u dIerenL cILy
back then. There were barely
any cars on the road and very
few international companies
were willing to operate in a
military-run country, while
businesses from US and Eu-
rope were unable to operate
due to government-imposed
sanctions.
But Puns risk, it seems, has
been rewarded and as the
country attracts an increasing
amount of foreign investment,
the estate is taking advantage of
the surge of international com-
panies setting up operations in
Myanmar, and more notably
Yangon, and who are looking
to house executives and their
families in high-class, comfort-
able accommodation.
[Since opening] it moved
Oliver Slow
along nicely, but in this last 18
months to two years, we have
seen an enormous amount of
interest, said John Sartain,
who runs the management of
the estate. Sartain continued,
We are now leasing out many
apartments and houses on the
estate on behalf of the owners
and we are seeing a great deal of
interest from new international
businesses, proving that this is
the place to reside.
Property prices have gone
up sIgnIhcunLIy ucross LIe CILy
of course, and we have put in
u Iuge umounL oI eorL InLo
maintaining a world class es-
tate, particularly infrastructure,
such as WiFi, sewage systems,
sanitation and a continuous
electricity supply to ensure that
they are all up to international
standards, he added.
This has helped to attract a
number of business people, not
just those from abroad but also
prominent local businessmen.
The estate, Sartain says, has a
roughly 50/50 split between
foreigners and locals.
Pun Hlaing is currently about
an hour and a halfs drive from
the city, something that Sartain
accepts is a minor issue as many
of the residents on the estate
work in Yangons downtown,
but with work nearing comple-
tion on the Hlaing Tharyar
bridge connecting the western
part of the city with the centre
the travel time is likely to be
halved when the bridge opens.
Once this [travel time to the
city] is down to less than an
hour, maybe 45 minutes then I
think that will be acceptable for
most people, he said.
Were in an enviable position.
Once the bridge and adjoining
junction work is complete,
communication improves, and
we commence a ferry service
from the estate to downtown
next year, it really will put our
esLuLe In u dIerenL Ieugue.
We already have a hospital, a
school. At FMI City we already
Myanmar Summary
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Serge Pun ~.,_e ..:e:_.
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Contd. P 26...(Pun Hlaing)
A view of the clubhouse at Pun Hlaing Golf Estate.
G
W
R
November 7-13, 2013
Myanmar Business Today
26
From page z,...(Pun Hlaing)
PROPERTY & REAL ESTATE
The Pan Pacic Singapore HoteI.
P
P
H
G
Shwe Tuong, Pun Pucic Reuch Agreement on
g-Stur Hotel in Yungon
Oliver Slow
T
he Shwe Taung
Group has reached
an agreement with
international hotel chain
Pun PucIhc HoLeIs Group
Lo consLrucL u hve sLur
hotel located close to
Yangons downtown.
TIe Pun PucIhc HoLeI
Yangon will be located
on the southern side of
Bogyoke Aung San road,
opposite the market by
the same name, according
to state-run New Light of
Myanmar.
In March 2012, Yangon
City Development Com-
mittee (YCDC) invited a
tender for the implemen-
tation of a project that will
IncIude un omce Lower,
apartments, a shopping
centre and the hotel.
The project, designed
by DP Architects of Sin-
gapore, will be developed
under two phases. The
hrsL pIuse wIII IncIude
the construction of a
z-sLorey omce Lower, LIe
20-storey hotel and some
parts of the shopping
centre, before the second
phase which includes
a 28-storey apartment
building, the remaining
aspects of the shopping
mall as well as parking for
1,500 vehicles.
No time scale has yet
been given for the project.
The project is expected
to create at least 2,000
jobs and comes at a time
when hotel rooms are
much needed in Yangon
due to the increasing
demand in Myanmars
tourism industry.
As part of their CSR
campaign for the project,
Shwe Taung will build a
primary school alongside
the hotels site.
Pun PucIhc currenLIy
operates around 30 high-
quality hotels worldwide
and also operates the Park
Royal brand of hotels.
Myanmar Summary
have a [another housing
estate operated by Serge
Puns group] supermarket
and a Yoma Bank branch
so things will develop
quickly from here, he
added.
As the estate contin-
ues to expand, further
projects are underway.
One such project is a
new 5 star boutique hotel
that is currently under
construction that will
overlook the golf course.
The 46-bedroom hotel
is expected to be, much
like the estate, managed
to the highest standards
and Sartain believes that
the hotel will compliment
the golf activities as well
as serve the local business
community.
We also hope to attract
people here on leisure
breaks, so the estate will
become a destination in
its own right and as the
hotel will be ready by
early 2015 we are working
hard on preparing and
developing our people
for the operational issues
now, he said.
One of the challenges
faced by the estate is a
regular theme across
the country human
resources. With more
than 25 years in the
hospitality industry, and
having spent the previous
hve yeurs operuLIng IoLeIs
in Singapore, Sartain is
hoping to use his experi-
ence Lo LruIn IocuI sLu
so that they can operate
the estate on their own,
something he feels can
contribute to Myanmar
society.
One of the things that
I noticed early on is that
although we have almost
one thousand people
working on the estate
and they are incredibly
enthusiastic, diligent and
hard-working, many lack
training. They are very
keen to learn and part
of my remit is to impart
them my knowledge and
experiences gleaned over
the years. In a short time
some of these wonderful
people will be managing
this estate they are the
future, not us!.
Very early on Sartain
InILIuLed specIhc LruInIng,
much he undertook him-
self English language
From page z,...(Pun Hlaing)
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Group . q,~,_.~._
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Pan Pacifc Hotel Yangon
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of Myanmar . .~..e:_.
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training is one, leadership
training, standards and
quality, health and safety.
Importantly, we have
also handpicked six peo-
ple from the estate who
we are grooming to be
our leaders of the future.
Theyre very enthusiastic
and they will be provided
with a personal fast track
training programme to
facilitate them moving
into supervisory positions
within two years. This will
be evidence to others that
local people do have real
opportunities to grow and
to develop themselves on
this estate.
The golf course itself
oers mucI IuLure
potential too, Sartain
believes. He revealed that
due to ongoing work on
the course over recent
years, the club had not
taken some of the more
major tournaments in the
region as it had in the
past. Although the work
is continuing, they will
now be looking towards
hosting more events on
a course that is generally
touted as the best course
in the country.
We are already speak-
ing to Asia Golf with a
view to hosting some
Senior and Junior tour-
naments over the next 12
to 18 months and by the
end of 2015 [we hope]
to be in a position to bid
for hosting the Asia Tour,
maybe the Yangon Open,
he said.
For casual golfers, he
says the courses popular-
ity is growing rapidly and
that on the weekends they
need Lo munuge LIe Lee o
time carefully to ensure
that members can play at
an enjoyable pace.
So as the entire estate
grows, and the area
around us grows, we hope
to take advantage of the
opportunity with our Ser-
viced Residences, which
will open middle January
2014, he said.
Myanmar Business Today
IT & TELECOM
27
November 7-13, 2013
Contd. P 28...(CSMA)
Ooredoo in $gok Speciul
Olympics Sponsorship Deal
S
pecial Olympics Myanmar
is to get a $50,000 spon-
sorship boost from Qatar-
based telecommunications
company Ooredoo for one year
starting last month, Ooredoo
said in a statement.
The money will help athletes
with their travel, accommoda-
tion costs and sporting pro-
grammes, the company said.
Ooredoo Myanmar made the
sponsorship announcement
at Special Olympics Myanmar
National Games on October 26.
The president of Special
Olympics Myanmar, U Myo
Shein Thu Aung MyInL, suId, TIIs Is LIe hrsL
time we have ever received such
tremendous support from an
international organisation like
Ooredoo Myanmar.
We see this as a long term and
strong relationship between
Ooredoo Myanmar and Special
Olympics Myanmar.
Ross Cormack, newly-
appointed CEO of Ooredoo My-
anmar, said: As a community
based operator, we are proud to
show our support towards the
Special Olympics Myanmar and
are committed towards build-
ing sports and sportsmanship
within Myanmar.
Ooredoo Group has a history
of sponsoring sport clubs and
players such as French League
1 football club Paris Saint-Ger-
main and Argentine footballer
Lionel Messi. The company
said it wants to get engaged in
similar sponsorship deals in
Myanmar.
Special Olympics Myanmar
National Games was held on Oc-
tober 26 in the Youth Training
Centre at Thuwunna Stadium
with 350 athletes participating.
In 2004, Special Olympics was
hrsL InLroduced In Myunmur Lo-
gether with the training courses
conducted by Special Olympics
AsIu PucIhc Ior CoucIes oI
Myanmar.
Uoredoo's chief operation ofcer, Chris Bannister (I), and chairman of SpeciaI UIympics Myanmar, Myo Myint, shake hand at the opening
ceremony of Special Olympics Myanmar National Games.
Myanmar Summary
GSMA Elects Telenor
CEO as Chairman
T
he global association for
mobile operators and
related companies GSMA
announced that it has elected
Jon Fredrik Baksaas, president
und cIIeI execuLIve omcer oI
Telenor Group, to serve as
GSMA chairman for the re-
mainder of the current Board
term through December 2014.
Baksaas will oversee the
strategic direction of the or-
ganisation, which represents
nearly 800 of the worlds
mobile operators, as well as
250 companies in the broader
mobile ecosystem, GSMA said
in a statement.
Baksaas had served as deputy
chairman since January 2011,
and now replaces Franco Bern-
ab. I look forward to working
closely with the rest of the
board, the GSMA team and our
entire membership to advance
important industry issues.
The GSMA will continue to
focus on the future evolution of
our networks, the adoption of
secure and interoperable new
services and advocate for the
needs of our industry to govern-
Kyaw Min ments and regulators, Baksaas
said.
Anne Bouverot, director gen-
eral, GSMA, said: I am looking
forward to working with Jon
Fredrik and the entire GSMA
board to develop global and
regional programmes that will
drive future growth and invest-
ment in mobile services.
The GSMA organises the larg-
est annual event in the mobile
industry, the GSMA Mobile
World Congress, in addition to
smaller, targeted events GSMA
Mobile Asia Expo and the
GSMA NFC & Mobile Money
Summit.
Baksaas, 59, is a Norwegian
citizen and has worked in the
telecom industry for 25 years.
He has been president and CEO
of Telenor Group since June
2002. Telenor was one of the
winners of two telecom licences
oered In Myunmur.
Baksaas is also a board mem-
ber of Russian telecom operator
VimpelCom Ltd and Swedens
Svenska Handelsbanken AB.
With a workforce of about
34,000, Norway-based Telenor
MPT Invites Tenders for
Nationwide Wi-Fi Service
T
he state-run Myanmar
Post and Telecommuni-
cations (MPT) has invited
local and overseas companies to
implement broadband wireless
(wI-h) servIces In Myunmur.
The companies must submit
details of their technical and
business proposals to the chief
engineer of MPTs Information
and Technology department in
Nay Pyi Taw by 4pm on Novem-
ber 30, an MPT announcement
said.
Bidders may be required to
submit their company registra-
tion, registration record, and
Phyu Thit Lwin other company details, it said.
Business operators who
would like to provide internet
services can expect to receive
their internet service provider
(ISP) licence within six months
from the day the Telecommuni-
cuLIons uw comes InLo eecL,
MPT said.
Communications and other
related licences will be provided
by the government after the tel-
ecommunications bylaws come
InLo eecL.
The rules and regulations
form for the tender process can
be obLuIned durIng omce Iours,
MPT said.
Myanmar Summary
~:~:~._..~ .~.e.q...
,._~._e. ..: Ooredoo . Special
Olympics Myanmar ~:. ~..q
~,..'.: ~~~~ ..,.: _......
.:..__e.._~:. .q._. ~..|
~.:~ ~. ~:. ~:.~.:...:..:.
~~ ~ . :..q..:.q. .:..q...:~
.q.~,~.q~.:.. ~:.~.:.~.
~..:.~~~ ~.._..:..__e.
._~:.._. .q._.
e ... , .:..:~ _ . ~ ~:.
.~:~ ~ :.' q~ ., ~ Special
Olympics Myanmar National Games
~ ._~_:. ._~: . . q._ . Special
Olympics Myanmar -~__e..
..._.~ e.~. Ooredoo .
..,.:...~._..._ .....
~_~. ~_.__._.q:~e~._.
~... ~.:~~.....~..._e.
._ ~: .._ .:_~:.. ._ ..,:~ .:._
~,:~~ ._ . Ooredoo Myanmar
. Special Olympics Myanmar
~~.,_e.~ . e . . . .:.:. . ._
_e.._~:.._ .. q._ . Ooredoo
Myanmar . ~...,~..~..:
.~.~_e.._ Ross Cormack ~
. ~._..~.~.e.q..~:..q
~:_e. ._ ~:...: . : Special Oly-
mpics Myanmar ~ ~.:~ ~.
.:.~ _.. . ...q._ ~~ ~ ~ e ~..
._.:~ ._~:. ._.:_~:..._.
_., .:. . . . , .~. . _e. ..:
_ ., .: .~ . e .q.. broadband
wireless (wi-f) ~,..:..:.~:.
~.~: ~_ .e: ..: q ~ . q,
~~~ _._~._._.~.~.:.~:.
e~..'. _....._~:. .q._.
~ . ~ .:.~.,_e , .~ -,_ .._:
. .. . . , .. .~. _...:~ :..
~ ~.~~.~.~~ .,_._.~:
q _.,.:.~.e.q.- .~.~.~
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.. . ~ . .q._ _e. ._~: ._., .:
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~ . ~ -. ~ . ~ :.. . ~ ~. .. ~
_.:.~.~~.~.:.~._...~~
. .q,.~.._~: .._ .. q._ .
November 7-13, 2013
Myanmar Business Today
28
IT & TELECOM
Myanmar Summary
From page z;...(CSMA)
Ooredoo Announces New
Appointments for Subsidiaries
Q
uLurI LeIecoms hrm
Ooredoo announced that
it has approved two new
appointments at chief executive
level for two of its international
operations.
Ross Cormack, former chief
execuLIve om cer (CEO) oI Oore-
doos Oman arm Nawras, has
been named as CEO of Ooredoo
Myanmar, the newest operation
of the group.
Ooredoo was granted one
of the two landmark foreign
operator licences in Myanmar
in J uly.
Greg Young took on the role
oI CEO Ior Nuwrus, wILI eecL
from October 23.
Sheikh Abdullah bin Moham-
med bin Saud Al Thani, chair-
man of Ooredoo, said: Ross
Cormack has created a leading
telecoms business in Oman, and
will now bring the full weight of
his passion and industry knowl-
edge to our newest market,
Myanmar. Greg Young is an
extremely experienced industry
hgure wIo wIII IurLIer drIve
our success in the key market of
Shein Thu Aung Oman. We wish them both all
the best in their new roles.
Ross Cormack was instru-
mental in the original bid for
a telecoms licence in Oman in
2004, and has led the company
since then. Nawras currently
oers hxed und mobIIe broud-
band services to nearly 2.3
million people in Oman.
Greg Young worked as CEO of
Sri Lanka Telecom, which is the
largest telecoms operator in Sri
Lanka, with more than 10,000
sLu.
Ooredoo has a presence in
markets such as Qatar, Kuwait,
Oman, Algeria, Tunisia, I raq,
Palestine, the Maldives and
I ndonesia.
The company reported rev-
enues of $9.3 billion in 2012
and had a consolidated global
customer base of more than
92.9 million people as of 31
December 2012.
Myanmar Summary
LG to Bring G2 to Myanmar in November
S
outh Korean electronics
giant LG said it will bring
its high-end Android
smartphone G2 to Myanmar
this month in a bid to tap the
growing handset market of the
Southeast Asian nation.
The LG G2, a successor to LGs
earlier Optimus G and the Opti-
mus G Pro series, was unveiled
at a press event in New York
In AugusL, und hrsL reIeused In
September.
The G2 is primarily distin-
guished by software features
that LG billed would learn
Aye Myat Irom users, u IIgI hdeIILy sound
system designed to produce
higher quality audio, a 5.2 inch
(130mm) screen with technol-
ogy that the company claimed
would improve energy ef-
hcIency, uIong wILI LIe unIque
placement of its power and
volume keys eschewing their
typical location on the bezel of a
smartphone by placing them on
the rear below the camera lens.
LG Electronic CEO J ong-Sok
Park said: We know what the
customers want from a smart-
phone and G2 is going to deliver
that.
Key Specifcations:
Processor: 2.26GHz Qualcomm Snapdragon 800
Display: 5.2 inch Full HD IPS (10801920 pixels/423ppi)
Memory: 32GB/16GB
RAM: 2GB LPDDR3 800MHz
Camera: Rear 13.0MP with OIS/ Front 2.1MP
Battery: 3,000mAh
Operating System: Android Jelly Bean 4.2.2
Size: 138.570.98.9mm
Colours: Black/White
Myanmar Summary
Group has more than 150 mil-
lion mobile subscribers world-
wide. I ts 2012 revenue stood at
$17.34 billion.
~:~:~._.. ~ .~ . e .q.. . , .
_~ ._e. ._ Ooredoo . ~_._ _._
. q: .~ . e .q.. . , ...: q ~
. .:.~~ ~ ~. ..: q: ..,q:~
. . . . .~:. ~.. ., ~. . ~ _. _e.
._~:. ._~_:.._.
e. ~ Ooredoo - ~ ., . . , .
. Nawras . ~. ..: .. .e: ._e.
. Ross Cormack ~:. Ooredoo
Myanmar - .~.~~_e. ~:~,
...~..._~:. .q._. Ooredoo
._ _., .:. . ._~:.... ~ ...~.
. ..: .~ . e .q.. . qq :.
._. . , .~. . ._ ._e. ._ . Nawras
- .~.~q:.~:. .~:~~:.
, q~ ., . .~ _ Greg Young .
~:~, e ..: q ~ . :.._ _e. ._~: .
.q._.
Ooredoo -~__e.. Sheikh
Abdullah bin Mohammed bin Saud
Al Thani ~ Ross Cormack ~.,
_e ~.,~ .~.e.q...,._
~._.~.,.~:..:. e,~.....
...~~.._e...: _.,.:.~
._ . , .-~.~ ~_~ .:. ~..~
..:. ~.._:.:.. ~.~:...
.....:.:...__e.._~:. ._.:
_~:.... Greg Young ._._.
~. , ~.~ ~_~ q ..:. . ~. ._e.
_.. ~.,...~~~:. .~:_..qq
q, . . ...: . . ._ _e. ._~: . ._.:
_~:.. ._ .
~.:...q: ...~:..q~:
.:.. .~ .. ~ . ~ .:.~. ._~ .
GSMA . Telenor Group -
~_. ~...:.._e.. J on
Fredrik Baksaas ~:. GSMA
.~ q ~ ~e - ~ _q: .~:.
.q..e.,~..~._~:. .q._.
Baksaas ~.,_e ~e~._.-
,_ .-e:q_ . , ..~ ~ ~ ~ e . :.
q._ _e. _. . ~. .|~e ~._ ._~ .._
~. : . ..~: ..q~:.:. ~~ , ..|.
~ ~ e .:._..,.. broader mobile
ecosystem ~._. ~.~..|.
~ .|~._~:. GSMA . ._.:
_~:..._. Baksaas ._ ~~~
... ~,,~|q...~_ .~e~_
~.,_e ..: q ~ . ._~:. . q._ .
GSMA ~.,_e , .~ ~ , q~ .:.-
~,:~ ~ .~~ ._ .: .. . ~ .~
.~~:,.~....:.:..__e._..
. . .~: .. , ..:~, ..: . .:.~ ._.
_~ ... ...:q~.:..__e.._~:.
Baksaas ~ ._.:_~:.. ._ . , _~:.
.q....._e.. Anne Bouverot
~ J on Fredrik .~~ ~~e
~~ .:.~.,_e ~,:~ e _e .~ .~~
.. ..~,..:..:.~ q...
_.....:. ~.~~.:..q, ..,.
...q: ~.~..:.~:. ....|.
..:q~.:._~._e ..:.:.
._~:. ._.:_~:..._.
.~: ~ q.e:.. ~._.. ~ ~ .~
.q:,...,._~._e...: LG .
~._. ..~e,._e.._ G2
._ _.,.:...~~~ .q:~q.:
.~: ._ _e. _. . _., .:. -e _e .~ .~~
.,..: e,....~~~ .,q:e q,
~~~ _~.....~..._._e.._.
G2 ~:. _.~.~ ,e..e:._
......~ _..._.. .~~
:.~ .~_e,.._....._~:.
.q._.
G2 ~ ~.~~.~~e_...
._..~. e,.~e~.~..~
~ ~ e , . - .,:~ .~:~ ~
~. . ~. ._. :._ . . ~. ~~ .
~~e..~~:. e,.-.,:~.~:
~ . ._.: .. ~. . q_. .. : ...
..:. e,.._.:._~.|~ ~.e
~~ _......q,_e.._~:. ~ . ~
. ._.:_~:.. ._ .
Sony Slushes Prot Ootlook
with TV Business Back in Red
S
ony Corp cuL ILs IuII-yeur prohL LurgeLs uILer sIIppIng Lo u
quarterly net loss as its recovering TV operation relapsed into
the red.
The J apanese electronics maker's worse-than-expected perfor-
mance, a setback after years of striving to return to its former glo-
ries, also featured weak sales of video cameras and a steep slump in
personal computers in the J uly-September quarter.
With a quarterly net loss of 19.3 billion yen ($197 million), Sony's
bad-news Thursday came in stark contrast to an upbeat showing
by J apanese peer Panasonic Corp. I t also stirred doubts about
how the best-known J apanese technology company can anchor a
turnaround as rivals like Apple I nc and Samsung Electronics Co
have gained dominance through heavy investment in new mobile
devices.
"I still cannot see any fundamental and believable strategy for the
rebirth of Sony's electronics business," said Makoto Kikuchi, CEO
of Myojo Asset Management based in Tokyo.
"On the other hand Panasonic, which is shifting its business
away from consumer electronics, is reporting better-than-expected
results. The contrast is like night and day."
TIe TV operuLIon Ipped Irom u .z bIIIIon yen operuLIng prohL In
AprII-June - ILs hrsL quurLerIy prohL In LIree yeurs - Lo u q. bIIIIon
yen operating loss. Reuters
Jon Fredrik Baksaas, president and chief executive of Telenor, has been elected as chairman
of GSMA.
W
M
C
Myanmar Summary
TV operation .:. ~._.~.,. .. _.,.q:~q.~: ....~~.:.~~
_.~ ..: . , ..~ ..q:~ q . ._ ~~ ~ SonyCorp._ , .-~. . . ~:~_.~
.qq...:.,..~~:...: .., . , .. ~ q_. _e. ._~: . .q._.
.,.-~.~.q:,...,._e. ._ Sony-. . , ..:.~.,_e ..:
. ,.:.._ ~._.~.,~ q.. . ..:.~ qq . _. .. . ,._., ._ ~ .~~ .:q,
_~ .....,_..,..~e~.~ _.,._.~_~.,q_..._._e.._.
~... .~~:. ...~~:.~~.-.e~.q:.:.. ~,.~:.:.
.q:.~:.~... ._. ....~ ~:.~.:.~ ~, ...'. . :., e,.. ~.,
.e ~..q~, ..'.: ~ ..e,~q.,._~:.._..q._.
Myanmar Business Today
AUTOMOBILE
29
November 7-13, 2013
Toyota Tsusho Receives Vehicles Order from Myanmar
T
oyota Tsusho Co, a
LrudIng Iouse um IIuLed
with J apanese carmaker
Toyota Motor Corp, received
an order for 27 vehicles from
the Myanmar government, the
company said last week.
Kyaw Min The vehicles are mainly dump
trucks and will be used for the
construction of roads in Karen
sLuLe wIere un eLInIc conIcL
has subsided recently, Toyota
Tsusho Co said.
The Ministry of Construction
mude LIe order usIng om cIuI
development assistance (ODA)
from the J apanese government.
Toyota Tsusho, based in Na-
goya, plans to start supplying
the vehicles in 2014.
Myanmars mountainous
Karen state, which is located in
the southeast and borders Thai-
land, lacks basic infrastructure
such as roads, power grids and
bridges. Following the peace
treaty struck with the Karen
rebels, the government has
taken up several development
projects in the state.
Founded in 1948, Toyota
Tsusho Corp is a member of
the Toyota Group and one of
the largest trading companies
in J apan, and the 6th largest in
the world.
Toyota Tsusho has over 150
om ces und qoo subsIdIur-
ies, with 33,845 employees
worldwide. Its main business
is supporting Toyota Motors
automobile business and other
Toyota Group companies, span-
ning industrial, commercial
and consumer sectors. Its 2012
revenue stood at $71.9 billion.
Myanmar Summary
T
r
u
c
k
t
r
e
n
d
In Myanmar, Hyundai Motor Basks in Korean Wave
H
yundai Motor aims to
raise its market share
in Myanmar to over
15 percent in the next three or
four years, basking in the huge
popularity of South Korean
culture, the sole dealer for the
automaker in the country said
on Tuesday last week.
Hyundai Motor, which
opened ILs hrsL sIowroom In
Yangon in August, plans to set
up 14 dealerships in major cities
by 2018 as it seeks to crack into
the small, but growing market
dominated by Japanese car-
makers, Kolao Holdings said.
Young people in Myanmar
who watch Korean dramas visit
our showroom and look for cars
that were shown in the dramas,
Oh Sei-young, chief executive of
Kolao Holdings, said at a media
brIehng.
Hyundai is really keen on the
Myanmar market.
South Korean culture, known
as the Korean Wave or Hallyu,
has swept through Asia in re-
cent years generating billions of
dollars in revenue from drama
and pop music.
Myanmars car market started
to bloom around 2011, after the
quasi-civilian government of
President Thein Sein took over
from the military government,
allowing some old cars to be
swapped for permits to import
newer models.
Myanmar will have a total
331,468 passenger cars regis-
tered this year, up 24 percent
from a year earlier, according
to Kolao, adding only six out of
1,000 people own cars there.
Most of the cars are Japanese,
which dominate most South-
east Asian auto markets such as
Indonesia.
The likes of Nissan Motor
and Ford Motor have raced to
gain a foothold in the Myanmar
market, spurred by the govern-
ments loosening of import
regulations on new cars in 2011.
Hyundai Motor, which sells
the Starex van and Elantra
small sedan in Myanmar,
targets sales of 1,500 cars next
year in the country, Oh said.
In neighbouring Laos, Kolao
Holdings imports and sells new
cars from Hyundai Motor, Kia
Motors and Chinas Chery, and
assembles knock-down kits of
second-hand imported cars,
controlling 37 percent of the
countrys imported car market.
KoIuo HoIdIngs suId In u hI-
ing on Monday last week that
it plans to raise about $150
million through share sales in
Singapore to help boost auto
hnuncIng busIness In uos, My-
anmar and Cambodia. Reuters
Myanmar Summary
., . - ..: .~: ~:.. . , ._~ .
_e...: Toyota Motor Corp -
~ , . e . . . , .~. . _e. ._ Toyota
Tsusho Co ._ _.,.:~..q.
..:.~:~:. ..~:. .:e.~..
~ .~.qq .._~:. e.~.~.
.,.._~.~~ ._.:_~:..._.
~..| ..:.~:~:..:.. : ~.~
~:._e ~.~~:..:._e._.. ~q
_._ ,e ~ .. ..:..e:~ . . . ~~ ~
~.._..:..__e.._~:. Toyota
Tsusho Co . ._.:_~:.. ._ ...:~
. . .q.~, _~ ._:,. ., ~. .q .
~q:.~ e _e ..q.~.:~ ~. .:.~
~. ._._ ..: .~: ~:.. :e . ~ _.. .
._.._e.._.Toyota Tsusho ._
Nagoya ~._..~..,.~.._e._..
~~, ...~ ..:.~:~:..:.~:.
.~ .:~ . .... :.. q, . . .,._ .
~q _ ._ ,e ._ .~: ~, ..:.
. ..: ...~. . _e. _. . ..
. ,e , . ~ . . .. .~ q ~: ...
.:. ~ ~:..:. .. .. .:~ ~:. _e, _e.
.~~. ~._..~..:~~~~_
~ ~:.,_..,...._. ~..q~.,
_e _ . ... ..q...: q ~ .~ .:.~
_~....._.. _._,ee_e.~.~~.q.
..~,..:.~._. ..:q~.,_._e.
._. Toyota Tsusho Corp ~:.
~, ...~ ~_.:._.. .,
.~ ~_~...~,.e...,.
_~..:.. ..,.~..._._e.~:
ToyotaGroup - . . , .~. . ._.
_e.._.
Hyundai Motor . .:._ , ..
. , ..~~. _.,.:.~ ...
~ ~ q e e: ~ q:. . , ..~: _. ~~
.:. q, ..: . , .:.._~: . _., .:.
. ~. .~_ .~ e .:.. e _e. ._
Kolao Holdings . .,.._
~.~~ ._.:_~:..._. Hyundai
Motor ._ _.~.~ q,~,_
, .-_., .:. ~ . .. .. . ~:.
~.q: ._.., .~ e . . . _. . ~~ . . .
~ _. _~ ..:.~ ~:..:.~:. ~.q: .
~~e _.. . . q, ._ . . . :.._~: .
. .~q _.,.:.-e_e.~.~~
.:..: ~:....~~~ .,~
~:..:.~ ......,q:e:.._~:.
._. .q._. ~q.e:.~:~....:.
~ _~_,_~._ .e.:.~.,_e
~:.~.q: ._.., ..:.. .:.q:~ ..
q_.. ~:~....:.~ .|~..:
~:..:.~ _~_,_~._~:. Kolao
Holdings - ~...:.._e..
Oh Sei-young ~ ._.:_~:..._.
Hyundai ~.,_e _.,.:~:....
~ ~ ~ ..:~. . _. ~ ._~:.._.
. q._ .~~~ . . . ~, .~ ~ _., .:
~:... .~ ~ .~ ~ .~~ .:. _. .
~q..:.~..q. ..q.~:~,.:.~
.~....:_...,.._ ~:...
.:. ~...~._. _.......
._. ~:.~.:...: .,.~
~:..:._e. _~_. . ., ~:..:.~.,_e
~ . , .q :.~ . ~.q .~: ~:q ~:.
...~~~._. .....:.._.
Cars made by South Korea's automakers Hyundai Motor and afIiate Kia Motors are parked
at a shipping yard of the automakers at a port in Pyeongtaek, about 70 km (43 miles) south
of Seoul.
L
e
e

J
a
e
-
W
o
n
/
R
e
u
t
e
r
s
November 7-13, 2013
Myanmar Business Today
CLASSIFIEDS
30
Myanmar Business Today
SOCIAL SCENES
31
November 7-13, 2013
SEA Games 2013 Press Conference with the Myanmar Yachting Federation
President of the Myanmar Yachting Federation, U Moe Myint, addresses the audience
during a press conference at the Yangon Sailing Club. Te Myanmar Yachting Federation
(MYF) announced details of its preparations to host the sailing event as part of the 27
th

Southeast Asian Games which will be hosted in Myanmar this December.
Myanmar Yachting Federation (MYF)
(From L-R) Head Coach U Tan Sein, Vice President U Myo Tin, President U Moe Myint
and Secretary General U Tayne Soe, fanked by members of the Myanmar National Sail-
ing Team. Myanmar Yachting Federation (MYF)
Members of the Myanmar National Sailing Team (from L-R) - Wai Pwint Warbo, Phone
Kyaw Moe Myint, Suu Myat Soe, Turein Tun Oo and Ye Chit Oo.
Myanmar Yachting Federation (MYF)
JVC Product Launch @Park Royal Hotel, Yangon
A customer checks out a JVC speaker. Kyaw Min Customers at the JVC product launch. Kyaw Min
Customers at the JVC product launch. Kyaw Min
A model promotes JVC products. Kyaw Min JVC products on display. Kyaw Min
A JVC delegate at the event. Kyaw Min
A JVC delegate. Kyaw Min
Delegates pose for a photo. Kyaw Min JVC staf at the launch. Kyaw Min
Teruaki Sato, president of JVC sales & service,
Tailand, gives his speech. Kyaw Min
Te VIP table at the JVC launch. Kyaw Min
U Tin Saung, executive director, authorised dis-
tributor of JVC in Myanmar. Kyaw Min Models pose with JVC products. Kyaw Min
W Ikebe from AVC Gruop, overseas marketing
department, gives his speech. Kyaw Min Te VIP table at the JVC launch. Kyaw Min
Deal Signing between Mama Noodles and
Myanmar Restaurant Association inYangon
U Kyaw Myat Moe, member of MRA, gives his
speechg. Kyaw Min
U Aung Hlaing Soe, deputy managing director of
Mama Noodles, speaks at the event. Kyaw Min
U Aung Hlaing Soe signs the agreement.
Kyaw Min
Mama Noodles and MRA representatives shake
hands afer signing the deal. Kyaw Min Delegates pose for a photo. Kyaw Min Delegates at the event. Kyaw Min
Ooredoo Myanmar Meets
Myanmar Mobile Application
Developers at A Brainstorming
Event
Question and Answer session with the media at
the Ooredoo event. Ooredoo
Te brainstorming session. Ooredoo
Q&A session. Ooredoo
Entrance at the Water expo. UBM
Myanmar Water 2013 Expo@Tatmadaw Hall, Yangon
Delegates pose for a photo. UBM Visitors register at the event. UBM Delegates at the ceremony stage. UBM
Delegates pose for a photo. UBM Ribbon cutting. UBM Delegates visiting stalls. UBM
Customers check products at a stall in the Water
expo. UBM
November 7-13, 2013
Myanmar Business Today
32
ENTERTAINMENT
Myanmar Hosts Classic Cars Event
L
ast week, twenty classic
cars rolled through Yan-
gon to begin a two-week
trip around the country aimed
at raising awareness of the
numerous classic cars in the
country, and to stop them from
being destroyed.
The cars, which include mar-
quees such as Mercedes-Benz,
Rolls Royce and Chevrolet, are
embarking on a 1,429 kilometre
trip that will take in Inle Lake,
Bagan and Ngapali Beach.
Nine of the vehicles have
been shipped in from abroad
specIhcuIIy Ior LIe LrIp, wIIIe
the remaining 11 have been in
Myanmar for some years.
I have watched what the
country has achieved over the
last 30 months and its aston-
ishing, Richard, a driver of the
Oliver Slow 1956 Mercedez-Benz told AP
with reference to the economic
and political changes taking
place in the country.
Formerly part of the British
Empire, classic European cars
have long remained in Myan-
mar after independence, but
until the government began eas-
ing restrictions on car import in
recent months, cars were solely
for the elites of Myanmars so-
ciety and many of the older cars
were sent to the junkyard.
Its very sad to lose these old
cars, said Zaw Phyo Linn from
the Myanmar Classic Cars Club
and who is participating at the
event. Our intention for hold-
ing the event is to let people
know that these cars are valued
and encourage them not to
destroy them, he added.
A 1928 Bentley classic car stops in front of Shwedagon pagoda during the start of "The Burma Road Classic" motoring rally in Yangon. About
twenty classic cars from Myanmar and around the world are participating in the event, where they will travel around the country during the
17-day-long vintage car rally, according to the organisers.
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Classic cars line up for a photo with Shwedagon Pagoda in the background, during the start of
"The Burma Road Classic" motoring rally in Yangon.
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Classic cars line up for a photo with Shwedagon Pagoda in the background.