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Myanmar to export 200,000 tonnes of rice to EU

Myanmar expects to earn US$1 billion on exports of 200,000 tonnes of rice to European Union countries during the 2015-16 fiscal year, according to Ye Min Aubg, the secretary of the Myanmar Rice and Paddy Federation.

“We want to earn US$1 billion because at this moment we are getting between $6 million and to $7 million from the rice and paddy sector. Fewer exports than imports causes instability in the currency exchange rate. So we need to promote the export sector. Promoting the rice and paddy sector will benefit both farmers and merchants. And we will control the quality of the rice we sell. If we export low-quality rice, we won’t get paid enough. But if we export good-quality rice, not only will we get paid a good price, but also will not have to export as many tonnes of rice,” said Ye Min Aung.

He added that the rice export sector was officially promoted in 2010.

In previous years, Myanmar has exported rice to EU countries such as Belgium, Denmark and Poland.

Myanmar exported 1.4 million tonnes of rice in the 2012-13 fiscal year, 1.3 million tonnes in 2013-14 and 1.8 million tonnes of rice in 2014-15.

Myanmar, Thailand destroy nearly $1 bn in seized drugs

YANGON: Myanmar and Thailand on Friday (June 26) destroyed nearly $1 billion of seized narcotics to mark World Drugs Day, as the UN said East and Southeast Asia remained the world's biggest markets for synthetic drugs and heroin.

Authorities in Myanmar said drugs worth around $245 million were crushed under a steamroller or torched in three locations including the commercial hub Yangon.

The country, which is emerging from years of military rule, has long-struggled to control illegal drug production especially in its border areas where ethnic rebel groups are still active.

The "Golden Triangle" region, which covers parts of Laos, Thailand and Myanmar, was formerly one of the world's top producers of opium and heroin, until the emergence of Afghanistan as a drugs production hub.

Myanmar's eastern Shan state accounts for nearly all of the illegal poppy cultivation in the country, which remains the world's second largest opium producer.

Much of the raw material is believed to be smuggled across the border for processing into heroin in China, which is home to the world's largest number of addicts.

In Thailand authorities torched nearly 9.5 tons of drugs with a street value of nearly $600 million.

"Around 66 million pills of methamphetamine, 798 kilograms (1,750 pounds) of crystal methamphetamine, heroin weighing over 418 kilograms" were among the drugs burned, according to a Public Health Ministry statement.

The ministry also said nearly 150,000 people have entered drug treatment in the last eight months.

The value of the drugs burned is twice the amount at last year's ceremony, in a sign of the Thai junta's tough stance on drugs.

In its annual report marking World Drugs Day, the United Nations Office on Drugs and Crime (UNODC) said authorities in East and Southeast Asia seized 12 tons of heroin, the third straight increase in as many years.

But the region also "reported the highest number of synthetic drug seizures in the world" it said in a statement.

Asia remains the largest market for opium and heroin, accounting for an estimated two-thirds of all users globally.

Meanwhile methamphetamine, which is known as "yaba", or crazy medicine, in Thailand, dominates the global market for synthetic drugs "and is expanding significantly in East and South-East Asia", the UNODC added.

The body also urged governments and donor nations to pour cash into helping poor farmers find alternatives to illicit crops such as opium.

Myanmar panel proposes minimum wage of K3600


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A national committee has proposed a nationwide minimum daily wage of 3600 kyat ($3.20) for all workers at the conclusion of a year of often heated debate between the Myanmar government, employers and labour representatives, the country’s media has reported.

A union representative and a Kayin state labour ministry official, both members of the national minimum wage committee, disclosed the figure to a leading Myanmar newspaper on the final day of a closed-door meeting in Yangon that appeared to deal a blow in particular to the garment industry.

Labour minister and committee chair U Aye Myint declined to confirm the amount. He told the newspaper that the minimum wage might be set between K3200 and K4000 and that the exact figure would be officially announced over the next few days.

“It is sure that the minimum wage cannot be less than K3000, even if we can’t say how much it is fixed exactly at this moment,” he told a press conference after the meeting. Ahead of the closed-door meeting Myint had promised to determine a proposed minimum wage for garment factory workers by the end of this month, despite strong opposition from employers.

Two months of consultations will be held after the proposal is officially announced, and before the issue goes to parliament for a final decision.

The committee made its decision on June 24 after a two-day workshop that brought together the labour ministry, employers and trade union representatives organised by the Union of Myanmar Federation of Chambers of Commerce (UMFCCI).

The committee, formed a year ago, includes the labour ministry, the national planning and social welfare departments, officials from states and regions, and labour and employer representatives.

Most committee members were said to be in favour of a proposed minimum wage of K3600 as a basis for the whole country. A day earlier, labour representatives had argued for K4000.

But the meeting was unable to reach a decision until the evening as representatives of the garment industry were insisting on a lower amount.

“The garment representatives made strong arguments on wages. They had been demanding wages as low as K2500,” said U Naw Aung, a labour delegate on the committee.

He said workers’ representatives appreciated that the committee agreed on a proposed K3600, even if it was less than they had pushed for, because there was an urgent need to settle the issue. Unions would now have a minimum wage on which to base proposed adjustments, he added. (SH)
 
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Myanmar’s Military Uses Political Force to Block Constitutional Changes


Military representatives voted on constitutional amendments at the Parliament in Naypyidaw, Myanmar, on Thursday.

EUROPEAN PRESSPHOTO AGENCY
By THOMAS FULLER

JUNE 25, 2015

BANGKOK — Myanmar’s military flexed its muscle on Thursday, blocking moves to rescind its veto power in Parliament and refusing to ease a rule that helps prevent Daw Aung San Suu Kyi, the opposition leader and Nobel laureate, from eventually becoming president.

The votes in Parliament, although not unexpected, were a reassertion of military power in Myanmar, which was ruled for five decades by the armed forces but has been experimenting in recent years with a more open and democratic system.

Under the Constitution, which was written by a junta, the military controls a quarter of the seats in Parliament, enough to block any amendments to the charter.

One vote on Thursday rejected a proposal to allow the Constitution to be amended with 70 percent of votes in Parliament instead of the 75 percent required now, which would have effectively removed the military’s veto.

Lawmakers also struck down a motion to amend a clause in the Constitution that bars anyone whose spouse or children have “allegiance to a foreign power” from becoming president or vice president. Ms. Aung San Suu Kyi’s husband, who died in 1999, was a British citizen, and so are their two sons.

She would have remained ineligible even if the vote had passed, however, because the proposal would have removed only the clause relating to a candidate’s spouse.

The votes on Thursday do not preclude Ms. Aung San Suu Kyi’s party, the National League for Democracy, from winning an election scheduled for this year. The Nobel laureate remains popular in the country, and her name — as well as that of her father, Aung San, the country’s independence hero — remains the most recognizable in the land.

Members of her party said after the vote that their campaign to elect Ms. Aung San Suu Kyi as president was not over.

“We expected we would lose this vote,” said U Win Htein, a member of the party’s central executive committee. “We will continue campaigning within Parliament and outside the Parliament. At the very least, we will be showing people we are trying to amend a Constitution that they don’t want.”

Ms. Aung San Suu Kyi, who holds a parliamentary seat, took part in Thursday’s votes.

Analysts believe that her party could have significant bargaining power in the days after the election, which is expected in late October or November. Parliament selects the president and vice presidents after the election, setting the stage for political haggling between the opposition and the military establishment.

Critics say Myanmar’s military has been out of sync with the democratization of the country. Military commanders have begun offensives against a number of armed ethnic forces, even as peace talks have continued. Those talks now seem unlikely to produce a national cease-fire that the government of President Thein Sein has been seeking.

On Wednesday, a military representative in Parliament defended the army’s prominent role in the country in a speech accompanied by a slide show of tanks and heavy artillery.

“It is necessary to keep the Myanmar military in the legislative and administrative sectors in order to protect and stand by the country in its time of need,” news outlets in Myanmar quoted the lawmaker, Tin Soe, as saying.

The reassertion of military power has given rise to pessimism among those who had hoped for a swifter emergence of civilian control over the country.

“Judging from the votes today, Daw Aung San Suu Kyi should rethink whether she should contest the elections at all,” a political commentator, U Yan Myo Thein, said Thursday. “There’s no hope that she will become president.”

Wai Moe contributed reporting from Yangon, Myanmar.

http://mobile.nytimes.com/2015/06/26/world/asia/myanmar-parliament-constitution-vote.html?referrer=
 
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U.S. criticizes Myanmar military veto after law change fails
By Timothy Mclaughlin and Hnin Yadana Zaw

YANGON | Fri Jun 26, 2015 6:45am EDT

getNewsImages

By Timothy Mclaughlin and Hnin Yadana Zaw

YANGON (Reuters) - The United States said on Friday that an effective legislative veto held by Myanmar's military was undemocratic and reiterated calls for changes to the constitution, a day after lawmakers from the armed forces bloc rejected any significant amendments to the charter.

Washington has re-engaged with Myanmar since a quasi-civilian government took power in 2011, ending 49 years of military rule, with President Barack Obama investing substantial personal effort and prestige in promoting democratic reform.

The United States has pushed for the country's military to be reined in, submitting to civilian control and stepping back from the political arena.

But Thursday's parliamentary vote, in which a proposed amendment to the veto provision failed to gain the necessary support, showed the military has no immediate plans to give up its powerful influence over public affairs.

"There are provisions in Burma's constitution, such as the lack of civilian control of the military and the military's veto power over constitutional amendments, that contradict fundamental democratic principles," a spokesman from the U.S. Embassy in Yangon said.

"It will be important to the ultimate success of Burma's democratic transformation that the constitution be amended to make it appropriate for a democratic nation."

In order for proposed changes to the military-drafted constitution to be accepted, more than 75 percent of lawmakers must support the amendment. With 25 percent of Myanmar's parliament seats reserved for unelected military MPs, the bloc has an effective veto power.

A proposed amendment voted would have seen the threshold of support lowered to 70 percent, but failed, as expected, to gain enough support with lawmakers.

Military MPs said that while they did not opposed changing the constitution in the future, the time was not right and doing so now might risk instability.

"We are making the country's situation stable by putting 25 percent military MPs in the parliament," said Brigadier General Tin San Hlaing, a military MP.

"If these articles really need to be amended, the military representatives would not hesitate to do so."

The country's military has not given any indication when it might consider stepping back from its powerful political position.

Myanmar's seven-point road map for a "disciplined democracy" was first laid out more than a decade ago and former strongman Than Shwe stepped aside in 2011, but military officials have shown little will to move away from politics.

In addition to the military's seats in parliament, the commander-in-chief appoints the ministers of defense, border affairs and home affairs.

Five of the 11 members of the country's high-level National Defense and Security Council are also active military members.

A proposed change to a separate section of the constitution, which includes a provision that bars opposition leader Aung San Suu Kyi from becoming president because her children are foreign citizens, also failed to pass.

The proposed change however, would not have gone far enough in helping secure Suu Kyi's presidential hopes, as it would only have allowed for individuals with children married to foreign citizens to hold the president's office, leaving her out.

Both amendments, if accepted, would have then needed the support of a national referendum.

Suu Kyi said after the vote that the military appeared opposed to even the slightest changes to its position.

"If we are going to amend the constitution, we have to make big moves. Today, we can see clearly that they don't even want to make small changes," she said.

(Editing by Alex Richardson)

U.S. criticizes Myanmar military veto after law change fails
 
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Myanmar panel proposes minimum wage of K3600


173213184364.jpg

A national committee has proposed a nationwide minimum daily wage of 3600 kyat ($3.20) for all workers at the conclusion of a year of often heated debate between the Myanmar government, employers and labour representatives, the country’s media has reported.

A union representative and a Kayin state labour ministry official, both members of the national minimum wage committee, disclosed the figure to a leading Myanmar newspaper on the final day of a closed-door meeting in Yangon that appeared to deal a blow in particular to the garment industry.

Labour minister and committee chair U Aye Myint declined to confirm the amount. He told the newspaper that the minimum wage might be set between K3200 and K4000 and that the exact figure would be officially announced over the next few days.

“It is sure that the minimum wage cannot be less than K3000, even if we can’t say how much it is fixed exactly at this moment,” he told a press conference after the meeting. Ahead of the closed-door meeting Myint had promised to determine a proposed minimum wage for garment factory workers by the end of this month, despite strong opposition from employers.

Two months of consultations will be held after the proposal is officially announced, and before the issue goes to parliament for a final decision.

The committee made its decision on June 24 after a two-day workshop that brought together the labour ministry, employers and trade union representatives organised by the Union of Myanmar Federation of Chambers of Commerce (UMFCCI).

The committee, formed a year ago, includes the labour ministry, the national planning and social welfare departments, officials from states and regions, and labour and employer representatives.

Most committee members were said to be in favour of a proposed minimum wage of K3600 as a basis for the whole country. A day earlier, labour representatives had argued for K4000.

But the meeting was unable to reach a decision until the evening as representatives of the garment industry were insisting on a lower amount.

“The garment representatives made strong arguments on wages. They had been demanding wages as low as K2500,” said U Naw Aung, a labour delegate on the committee.

He said workers’ representatives appreciated that the committee agreed on a proposed K3600, even if it was less than they had pushed for, because there was an urgent need to settle the issue. Unions would now have a minimum wage on which to base proposed adjustments, he added. (SH)

What do you think about the minimum wage, ko. nyi? I support it in theory but my business owning friends say it's unworkable. They do have a point as we need to keep costs down to compete with BD and our country probably doesn't have the capacity to handle all the bureaucracy but it would be a really brave step to introduce it.
 
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ဟုတ္တယ္.. ဘရို စီးပြားေရးျပိဳဳင္လုပ္မယ္ဆိုရင္ မလြယ္ဘူး... ခုဟာက ကုန္ေစ်းႏွဳန္းၾကီးတိုင္း လစာတိုးဖို့ပဲ လုပ္ေနတယ္... အစစအရာရာ အတြက္ အသူံးစရိတ္ေတြ အရင္ ေလ်ာ့... အေျခခံ အေဆာက္အအုံေတြ မွာ မ်ားမ်ားရင္းနွီး မွရမယ္
 
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Vietnam PM PM ends Myanmar visit on high note
June 29, 2015 by Thiha


NAY PYI TAW (VNS) — Initiatives by Prime Minister Nguyen Tan Dung at the seventh Cambodia-Laos-Myanmar-Vietnam (CLMV) Summit and the sixth Ayeyawady-Chao Phraya-Mekong Economic Co-operation Strategy (ACMECS) Summit were welcomed by member states.

During the CLMV Summit, the Vietnamese PM and leaders of Cambodia, Laos and Myanmar reiterated their commitment to foster the traditional relationship, neighbourliness and co-operation for mutual interest.

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Reviewing the progress of their two-year co-ordination, they adopted an action plan in economics and trade to facilitate trade and investment.

Participating countries will spread the one-stop-shop inspection model at international border gates, utilise the potential of trans-national economic corridors such as the East-West Economic Corridor and the southern economic corridor, while developing policies to encourage investment in agriculture, industry and energy.

The PM once again reiterated the Vietnamese Government’s commitments to CLMV co-operation and hoped the four countries would continue working together to successfully realise co-operation programmes for the sake of the region.

At the end of the summit, leaders adopted a joint statement and agreed to organise the eighth CLMV Summit in Viet Nam in 2016.

The Vietnamese leader also revealed a plan to hold a high-level business dialogue on the Mekong sub-region on the margins of the eighth CLMV Summit, a joint effort by Viet Nam and the World Economic Forum.

While attending the ACMECS Summit, PM Dung and leaders hailed the progresses on goals set in the 2013-2015 action plan, especially in transport connectivity, trade and investment facilitation, development of trans-national economic corridors such as the East-West Economic Corridor and the southern economic corridor, green tourism and agriculture co-operation.

A 2016-2018 plan of action was adopted to improve the competitiveness of ACMECS economies towards transforming the group into a leading investment and tourism destination, especially in border areas, and maximising growth opportunities generated by the ASEAN Economic Community and free trade agreements.

Eight priority cooperation areas were defined. They were trade-investment, agriculture, industry-energy, transport, human resources development, tourism, healthcare and environmental protection.

Later, at a dialogue between ACMECS leaders and the business community, the Vietnamese PM said he hoped enterprises would participate more actively in the building of co-operation programmes.

Promoting trade

Prime Minister Dung yesterday also attended a ceremony to mark completion of the first phase of construction of the Hoang Anh Gia Lai Myanmar Centre he also hailed positive results obtained by the investors.

He praised Vietnamese investors for promoting trade and investment in Myanmar, saying they had made practical contributions to bilateral relations.

Invested by the Hoang Anh Gia Lai Group, the US$440 million Hoang Anh Gia Lai Myanmar Centre is the largest foreign-invested real estate project in Myanmar so far. When complete, it is expected to become an architectural highlight in Yangon City.

The first phase of the project involved construction of a shopping centre, two 27-storey office buildings and a hotel with more than 400 rooms.

Work on the second phase began this month on a 63,800sq.m land plot that will host four 28-storey buildings for apartments and offices. It is scheduled to be completed in the second quarter of 2017.

Also yesterday, the PM participated in a similar event held to inaugurate operations of the financial and insurance arms of the Bank for Investment and Development of Viet Nam (BIDV) in Myanmar.

Highlighting the potential for two countries to boost bilateral co-operation, he urged the Association of Vietnamese Investors to Myanmar (AVIM) to increase its role in supporting Vietnamese firms expand business and investment in Myanmar, focusing in particular on finance, banking and real estate.

The association should team up with relevant ministries and sectors in both countries to identify ways to resolve difficulties in implementing bilateral co-operation agreements, he said.

Dung thanked the Myanmar Government and Yangon authorities for facilitating Vietnamese investment projects in the country.

Viet Nam hoped to strengthen all-round links with Myanmar, especially in 12 priority sectors stated in the joint statement on co-operation the two countries signed in April 2010, he said.

He witnessed the signing of a memorandum of understanding on co-operation between BIDV and Myanmar’s Global Treasury Bank as well as a US$30 million credit contract between BIDV and SMIDB bank that aims to serve the development of small- and medium-size enterprises (SMEs) in Myanmar.
 
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Myanmar to export 200,000 tonnes of rice to EU

Myanmar expects to earn US$1 billion on exports of 200,000 tonnes of rice to European Union countries during the 2015-16 fiscal year, according to Ye Min Aubg, the secretary of the Myanmar Rice and Paddy Federation.

“We want to earn US$1 billion because at this moment we are getting between $6 million and to $7 million from the rice and paddy sector. Fewer exports than imports causes instability in the currency exchange rate. So we need to promote the export sector. Promoting the rice and paddy sector will benefit both farmers and merchants. And we will control the quality of the rice we sell. If we export low-quality rice, we won’t get paid enough. But if we export good-quality rice, not only will we get paid a good price, but also will not have to export as many tonnes of rice,” said Ye Min Aung.

He added that the rice export sector was officially promoted in 2010.

In previous years, Myanmar has exported rice to EU countries such as Belgium, Denmark and Poland.

Myanmar exported 1.4 million tonnes of rice in the 2012-13 fiscal year, 1.3 million tonnes in 2013-14 and 1.8 million tonnes of rice in 2014-15.

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Much of this comes from Arakan. Produced using forced labor of Rohingya Muslims. Done directly under the control of Tatmadw.
 
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DPM Teo to renew cooperation programme with Myanmar - See more at: DPM Teo to renew cooperation programme with Myanmar, AsiaOne Singapore News

DPM Teo to renew cooperation programme with Myanmar -

SINGAPORE - Deputy Prime Minister Teo Chee Hean will make an official visit to Myanmar's Nay Pyi Taw and Yangon from June 30 to July 2, the Ministry of Foreign Affairs (MFA) said in a statement on Monday. -

In Nay Pyi Taw, DPM Teo will call on Myanmar's president U Thein Sein, Vice President Dr Sai Mauk Kham, Union Parliament and Lower House Speaker Thura U Shwe Mann, as well as meet with Union Minister for Home Affairs Lieutenant General Ko Ko.

DPM Teo will sign an agreement on the renewal of the Singapore‑Myanmar Technical Cooperation Programme together with Vice President Sai. Vice President Sai will also host an official dinner for DPM Teo.

After his visit to Nay Pyi Taw, DPM Teo will travel to Yangon for the official opening of the OCBC Bank and United Overseas Bank branches in Yangon on July 2.

- See more at: DPM Teo to renew cooperation programme with Myanmar, AsiaOne Singapore News
 
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Myanmar Mushrooms to be Exported to S Korea, Singapore

Mushrooms produced in Myanmar will soon be exported to South Korea and Singapore, according to Myanmar Mushroom Producers and Traders Group.

U Nay Win, chairman of the group, said that Myanmar mushroom manufacturers had fruitful discussions with interested parties with South Korea and Singapore who are interested in importing mushrooms in big quantities from Myanmar.

“This is the first time we are discussing exports in this scale. We will try to penetrate the international market with good quality products. The mushrooms need to be fresh and clean. We can get a good price if we can maintain quality.”

The group will send samples of mushrooms that are mainly produced and consumed in Myanmar to the interested parties in South Korea and Singapore, he added.

However, the growers are ready to produce the kinds of mushrooms that are preferred in foreign countries, U Nay Win said.

Ngwe Hnin (commonly known as snow fungus, silver ear fungus and white jelly mushroom), Kyauknayut and Kaukyo (straw mushroom) are the main types of mushrooms that are consumed in Myanmar

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Hitachi entering joint venture in Myanmar to produce transformers

YANGON -- Hitachi will join with a company in Myanmar to make transformers to meet the country's burgeoning power demand.
A subsidiary, Hitachi Industrial Equipment Systems, is expected to reach agreement on the joint venture next month with Myanmar's second-leading producer of transformers, Soe Electric & Machinery. The capital base will be $45 million, with Hitachi Group footing 51% and Soe providing the rest. Once approved by the government, it will be the first joint venture in power infrastructure equipment with a company outside Myanmar since the country started democratizing in 2011.

Soe Electric's two transformer plants are to be placed under the jointly owned company, and Hitachi plans to transfer its own technology. The partners aim to produce transformers as soon as year's end. Hitachi's innovative transformers, which use amorphous alloys to decrease power loss by as much as 40%, are slated to be introduced.

It is estimated that Soe Electric has a 30% share in Myanmar's transformer market. With its revamped plants, the company aims to double production in five years and raise its share to 40%. It is also considering exports to surrounding countries such as Cambodia and Laos after a couple of years.

Hitachi has electric power, information and rail operations in Myanmar. It plans to expand its business there five-fold to 30 billion yen ($242 million) in five years.

According to the Asian Development Bank, Myanmar's GDP is projected to grow 8.3% this year, the most in Southeast Asia. Power demand is on pace to rise at double-digit rates. Demand for transformers is also estimated to grow 17% a year. The current market, which is roughly $60 million, is seen doubling within five years.

Chinese-made transformers were the norm during Myanmar's military rule, but they can't meet the country's needs because of poor quality. However, Western companies like General Electric and Germany-based Siemens are coming into the game late because of past U.S. economic sanctions. Hitachi intends to take a leading position in this growth market through leveraging its partnership with a major local company.

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Mitsubishi Electric and AGT sign technical licence agreement

apan, Tokyo: Mitsubishi Electric Corporation has announced that it has signed a technical license agreement with a Myanmar-based manufacturer Asia General Transformer Co., Ltd. (AGT), for the design and supervisory technical support for the production of 100 MVA 230/66 kV oil-immersed core-form transformers.
Mitsubishi Electric will provide AGT with electrical design documents, technical assistance, technical training and consultation to enable the company to manufacture the transformers, states Mitsubishi Electric in the press release.

Myanmar is a country with significant economic growth potential, which has increasing demands for power-supply equipment, including high-voltage transformers.

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ICA to loan $210 million for Thilawa SEZ development
The Japan International Cooperation agency signed loan agreements worth US$210 million on June 30 to fund three projects of the Ministry of Electric Power, the Myanmar Port Authority and Ministry of Finance and Revenue.

The loan is meant to contribute to the first two phases of the development of the Thilawa Special Economic Zone and generate more interest among foreign direct investors and more job opportunities within the zone. The development will consist of providing undisrupted electricity to the zone and the creation of stable industrial and other services within Yangon Region. The improvements are also expected to reduce energy wastage as well as support the growth of SMEs by channeling money through various monetary associations, increasing the capacity of the associations, drawing in investors and raising rates of production.

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Gas plant studies near completion

june20-thilawa.jpg

A construction site at the Thilawa Special Economic Zone. (Photo - EMG)
YANGON – Myanmar’s Eden Group and firms from Japan and Thailand are conducting a feasibility study to build a 400MW natural gas plant at Thilawa Special Economic Zone (SEZ), south of Yangon, says Chit Khaing, chairman of the Eden Group.


“The feasibility study on generating power has lasted nearly six months. The power plant project may be implemented in 2016,” said Chit Khaing.



The estimated cost of the plant is US$1 billion, so last May the Eden Group signed an agreement on construction with the Marubeni Corporation from Japan and GPSC Co Ltd, a subsidiary of Thailand’s PTT, as well as the Ministry of Electricity.



The feasibility study, an environmental and social impact study and a business plan are being completed and a location has been chosen.



“We are going to sell power generated to Thanlyin Township and Thilawa SEZ as well as to supply power to Yangon,” said Katsumi Miyamoto of Marubeni at last year’s signing ceremony.



Eden Group has a 15 per cent share in the project and the group is now exploiting oil and gas with Myanmar Offshore.
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Despite obstacles, Myanmar farmers dream of resurrecting Asia’s rice bowl

NAN TIN, MYANMAR – Wearing a pair of Chelsea football shorts and a wide-brimmed hat, Than Tun toils away in his paddy field on the outskirts of Yangon, sweat pouring down his sinewy arms.

Gruelling work that once helped Myanmar become the world’s largest rice exporter is today a Herculean and often lonely job for farmers striving to return the impoverished nation to its former grain prowess.

“No one comes here and asks about the difficulties we face,” the 40-year-old says during a break, citing voracious insects, crumbling irrigation channels and greedy middlemen as just some of the challenges preventing him making a profit.

For much of the early 20th century Myanmar was Asia’s rice bowl. But after a nominally socialist junta seized power in 1962, decades of mismanagement shattered the agriculture industry in a nation where 70 percent of inhabitants still live in the countryside.

The quasi-civilian reformist government, which took over from the military in 2011, is determined to resurrect the country’s reputation as a rice producer.

But rotting stocks, creaking infrastructure, heavily indebted farmers and minimal foreign investment are among the hurdles it faces.

Yet many economists believe helping farmers like Than Tun offers Myanmar one of the fastest ways to both alleviate poverty and turn around the country’s fortunes.

“Improvements in agriculture are one of the genuine ‘low hanging fruit’ of reforms that could do much, remarkably quickly,” said Sean Turnell, an expert on Myanmar’s economy at Australia’s Macquarie University.

“This is not just theory — we can see Vietnam as a wonderful example of what is possible. A country that could barely feed itself in the 1980s now dominates various food and commodity categories,” he added.

Sergiy Zorya, a Bangkok-based expert on rice production at the World Bank, agrees it is high time Myanmar and the international community did more to invest in rice farmers.

“A significant increase in rice productivity and yields over the next decade would offer a major opportunity to drive GDP (gross domestic product) growth, increase farming incomes, increase exports and reduce poverty,” he said.

Rice is a good poverty alleviation tool, he explains, because money actually filters down to poor farmers rather than resting in the hands of corporations or middlemen.

He points to Cambodia, which has heavily invested in improving rice production and exports. Over the past 10 years each 1 percent increase in GDP has resulted in reducing the country’s poverty rate by 5.2 percent.

“But in Laos, an economy dominated by hydro-power and mining, a 1 percent growth in GDP results in just a 0.5 percent poverty reduction,” he adds.

Myanmar is fortunate to have both huge natural resources and farming potential. But it is the former that has piqued the interest of foreign investors scrambling to access the sector as the country opens up.

On the northwestern outskirts of Yangon lies Shwe Pyi Tar, a dusty suburb of wooden shacks overshadowed by huge warehouses, where most of Myanmar’s rice harvest is milled.

Kyaw Win, who owns one of the area’s larger processing plants, is desperate for the government to clear the hurdles for foreigners to invest in the rice industry.

“Our farmers need more knowledge about how to harvest more efficiently. At the moment we are creating a lot of waste,” he said as workers hauled heavy sacks of unmilled rice behind him.

Lack of good storage facilities means most farmers are forced to sell their rice shortly after the harvest — when prices are at their lowest.

Meanwhile, Myanmar’s mills are notoriously inefficient — some are still steam-powered — and produce low-quality rice that is hard to export and sold on the cheap.

In one of Kyaw Win’s warehouses a group of Japanese technicians is installing a gleaming new $3-million mill controlled by a complicated bank of computers.

The rice wholesaler is one of the few businessmen with hard cash to buy new equipment in an industry where most find restrictive financial rules prevent them investing in modern mills.

Kyaw Win says the largest loan he can access locally is around $1.5 million, which he would need to pay off within a year. But the entrepreneur is among the luckier ones already expanding his business.

“We have plans for a bigger plant, which we’ve already ordered. That will cost $5 million-$6 million,” he said, adding that foreign investment would help other companies like his bring Myanmar’s rice production back on track.

Than Tun is also dreaming of a better future, but he has smaller goals, starting with decent irrigation.

The system for his paddy fields, only 20 km (12 miles) from fast-developing downtown Yangon, was built in his grandfather’s time while his village, Htaw Bo, still lacks electricity.

“The government is not helping the farmers much. We have to take care of the irrigation system ourselves,” he says, admitting he has never voted and taken little interest so far in the landmark election slated for later this year.

“From what I can tell there’s nothing offered for us,” he concludes. “We just have to be on our own.”

And with that he returns to his field.
 
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Singapore Deputy PM meets Myanmar President, opposition leader
Singapore Deputy Prime Minister met Myanmar President Thein Sein and opposition leader Aung San Suu Kyi during his official visit to Myanmar on Wednesday (Jul 1).

NAY PYI TAW: Singapore Deputy Prime Minister Teo Chee Hean met Myanmar President Thein Sein and top government leaders on Wednesday (Jul 1), the second day of his official visit to Myanmar.

Mr Teo also called on Shwe Mann, head of Myanmar's ruling Union Solidarity and Development Party and Parliamentary Speaker, and held talks with opposition leader Aung San Suu Kyi.

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Singapore Deputy Prime Minister Teo Chee Hean and Myanmar's opposition leader Aung San Suu Kyi. (Photo: Singapore Ministry of Foreign Affairs)

Mr Teo's visit comes at a time when Myanmar is experiencing what he described as "a period of political, economic and social transformation".

"When we work with Myanmar today, what we hope to see is a peaceful, stable, prosperous Myanmar, a Myanmar which can bring a better life to all its people," said Mr Teo. "This in itself is a very valuable thing for ASEAN and for Singapore."

General elections in Myanmar are expected to take place sometime between October and November this year, after three months of what is likely to be fierce political campaigning.

SINGAPORE-MYANMAR TIES CEMENTED IN BUSINESS

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The signing ceremony of the Memorandum of Understanding to renew the Singapore-Myanmar Technical Cooperation Programme. (Photo: Singapore Ministry of Foreign Affairs)

Official visits between the two countries are regular and business ties are strong, with one in four foreign-owned companies in Myanmar coming from Singapore.

The city was also the number one source of new foreign investment in Myanmar last year, according to official figures.

Asked if Myanmar’s political uncertainty poses risks for foreign investors, Mr Teo said: “I think the businessmen who are here understand the business environment quite well and they will make their own calculations".

"They obviously see the opportunities, and that’s why they’re here,” he added.

Calling Singapore a “longstanding friend of Myanmar”, Mr Teo said his wishes for the developing country are peace, stability and progress in its transformation.

On Tuesday, Mr Teo and Myanmar Vice-President Sai Mauk Kham witnessed the signing of an agreement to extend the Singapore-Myanmar Technical Cooperation Programme for another three years.


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UOB plans to facilitate $300 million in investment in 12 months


Singapore-based UOB plans to facilitate US$300 million in investment in Myanmar over the next 12 months, according to Ian Wong, UOB Group head of strategy and international management.

UOB is one of nine foreign banks that won a licence last year to open a Myanmar branch. It subsequently opened its branch in May.

“We are very conscious we need to bring investment into the country,” said Mr Wong.

The firm is focusing on three areas: hospitality, infrastructure including project finance as well as the energy sector, and manufacturing.

Mr Wong said he reckons overall these three will contribute to significantly to Myanmar’s GDP over the comings years.

He also said these play to UOB’s strengths of its regional network and area of expertise. The three sectors will also be significant for Myanmar’s growth, adding industry in particular will be helpful by creating jobs and encouraging spinoff investments.

The mandate given by the Central Bank of Myanmar to foreign banks is about encouraging foreign direct investment into the country, he said. At first, UOB will be working with its existing international clients looking to make Myanmar investments.

By initially focusing on existing clients that it knows as well as understanding the projects, the bank aims to make sure its loans are to successful ventures.

“Our first focus is to bring the clients we have been working with around the world into Myanmar,” said Mr Wong.

It had previously been providing offshore financing for several clients operating in Myanmar, including to Asiatech Energy in early 2014 for a gas-fired power plant in Mon State. It also provided the first onshore loan by a foreign bank branch in Myanmar in May, with a loan to Rangoon Excelsior hotel.

Most of UOB’s initial demand for loans is in US dollars, though over time it expects to shift to a combination of dollars and local currency. Foreign banks in Myanmar cannot lend directly to local companies, which are more likely to need funding in kyat.

Mr Wong said the liberalisation of the banking sector to allow the first foreign banks to enter will assist the economy.

“I think it’s a good first step by Myanmar authorities to really identify banks which can help facilitate FDI into the country, because I think the country needs it at this point in time,” he said. “I think that is an important first step.”

UOB has also set up what it calls an FDI Advisory unit in Myanmar in 2013, which aims to help businesses identify and explore opportunities in the country.

The company had a Myanmar representative office for about 20 years before opening its branch office in May. While it was prohibited from most businesses with the rep office, it did provide the opportunity to build up the bank’s knowledge base.....................................
 
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MIC approves 123 companies in the current fiscal year

Fifteen local and foreign companies were granted approval by the Myanmar Investment Commission (MIC) in June, taking the total number of companies approved this fiscal year to 123, according to U Aung Naing Oo, secretary of the MIC.

“Creating local job opportunities is our main focus this financial year, so MIC has approved more contract manufacturers than companies in other sectors,” said U Aung Naing Oo, adding that investments into other sectors have also been approved.

The number of contract manufacturers granted approval is 35 so far this fiscal year, accounting for 43 percent of total permissions granted, according to a statement by the Directorate of Investment and Company Administration last week.

U Aung Min, chair of the contracted manufacturers association said, “The capital needed to invest in contract manufacturing is lower than for manufacturers. Moreover, they don’t have the headache of distributing their products in the market. Most of the foreign investments in this sector are from Korea and China.”

The statement said that a majority of MIC approvals were to companies in the manufacturing sector, including agricultural production, livestock production, wood finishing production, and the production of foodstuff, with 45 approvals granted this fiscal year, which began on 1 April.

During the first three months of this financial year 39 local enterprises, 41 joint ventures between a local and a foreign company, 32 foreign investments and 11 joint ventures between foreign companies and the government were permitted to do business.

Oil and gas extraction is permitted through joint-ventures between the government and international companies, and all of these joint ventures are formed through a profit sharing agreement. Oil and gas has been the most profitable of Myanmar’s export sectors since 2013, according to an official from the Ministry of Commerce.

Of the investments proposed by local companies, 11 were in the hotel sector, said U Aung Naing Oo. “Investment into the hotel sector is increasing because it has become an important sector for tourists coming to Myanmar,” he said.

From 1988 to May 2015, 657 foreign companies have pledged US$46.2 billion in investments to Myanmar.

During that period, 26 percent of approved projects were from China, the largest source of approved foreign investment into Myanmar.

Thailand and Singapore were second and third at 18pc each, and Hong Kong in fourth at 12pc.
 
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News
2C2P Transforms Electronic Bill Payment in Myanmar
2C2P is strengthening Myanmar’s ecommerce infrastructure to support Myanmar’s almost 30 percent CAGR in mobile penetration and near-eight percent CAGR in the domestic economy

penetration and near-eight percent CAGR in the domestic economy
Thu, 11/06/2015 - 08:42

Emily Jarvis

2C2P
finance in Myanmar
Myanmar ecommerce
ecommerce infrastructure in Asia
CAGR
mobile penetration rate
easyBills
Myanmar Payment Union


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2C2P, a leading Southeast Asian (SEA) payment services provider, and Myanmar Payment Union (MPU), the national payment network of the Republic of the Union of Myanmar, have launched Myanmar’s first electronic bill payment solution, easyBills. Developed by 2C2P, easyBills is available online at easyBills.com.mm.

2C2P and MPU are providing a non-cash payment option for prepaid phone top up, eliminating what was previously a cash-based, over the counter transaction. MPU consists of 21 local banks from the private and public sectors, which authorise the issuance and acceptance of all payment cards within the country. There are almost a million MPU cards in Myanmar, a number that is growing rapidly, in line with ongoing economic reforms. Using easyBills, MPU card holders can, for the first time, pay for mobile top ups.

Aung Kyaw Moe, CEO of 2C2P said: “Although ecommerce in Myanmar is at a nascent stage, with rapidly improving mobile penetration, a growing consumer middle class, and with improved logistical and financial infrastructure, the potential for ecommerce is tremendous. Launching easyBills continues 2C2P’s path to providing a robust payment infrastructure to support Myanmar’s growth.”

The initial rollout of easyBills enables mobile users to recharge and add value to their Myanma Posts and Telecommunications (MPT), MECTel, Telenor and Ooredoo prepaid cards. By mid-June, easyBills will expand to include the payment of electricity and other utility bills with domestic utility partners.

According to research consultancy Ovum, mobile subscriptions in Myanmar grew by 87.4 percent in 2014, to 10.7 million, catalysed by the entry of foreign telcos Telenor and Ooredoo. This, in turn, is forecast to grow at 21 percent CAGR, to reach 38.5 million by end-2019, as operators expand their networks to rural areas.

Zaw Lin Htut, CEO of Myanmar Payment Union said: “This year has been crucial for the growth in Myanmar’s ecommerce. We have achieved a number of firsts, from bringing ecommerce to Myanmar in February, to bringing electronic billing in May. Mobile penetration in Myanmar has exploded from some five million a few months ago, to more than 18 million current users. With mobile growth set to continue its upward trajectory, matched by rapid economic growth, we are pleased to be working with 2C2P, empowering the citizens of Myanmar with convenient and easy world-class payment solutions.”

McKinsey Global Institute (MGI) has forecast Myanmar’s economy to quadruple from U$45 billion in 2010, to about US$200 billion in 2030. Myanmar’s middle class, estimated at about 2.5 million in 2013, could increase to 19 million by 2030, with consumer spending almost tripling from US$35 billion to US$100 billion. Meanwhile, foreign direct investment (FDI) has risen from US$329.6 million in the 2009/10, to US$8 billion for 2014/15, according to the Myanmar Investment Commission.

“We take immense pride in building Myanmar’s ecommerce infrastructure, together with MPU, bringing electronic commerce to the country’s fifty million people,” added Aung.



2C2P has been proactively developing financial services infrastructure in Myanmar. This January, 2C2P, together with Myanmar Citizens Bank, launched ‘Citizen Card’, a reloadable prepaid card accepted by MasterCard merchants globally. In February, 2C2P developed and implemented Myanmar’s first ecommerce payment platform, together with Myanmar Payment Union (MPU), allowing Myanmar’s citizens to search, select and directly pay for online purchases for the first time. The company recently raised US$7 million in Series C funding, led by Hong Kong’s Amun Capital AG, Japan’s GMO Venture Partners Inc. 2C2P processed more than US$2.2 billion in transactions in FY2014.

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2C2P is a Myanmar company which based on Thailand and Singapore... it's also one of largest service providers in it's kind in Thailand...
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Lippo Group Inaugurates First Myanmar Hospital, Plans $1b Investment

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James T. Riady, Lippo Group's chief executive officer, center, poses with Indonesian officials and Myanmar partners at the inauguration of Pun Hlaing Siloam Hospital, in Yangon, Myanmar, on June 6, 2015. (Photo courtesy of Lippo Group)

Yangon. Lippo Group, one of Indonesia’s largest conglomerates, launched on Saturday its first hospital in Myanmar, as part of the group’s plan to spend $1 billion to build 20 hospitals in the country over the next three to five years.

The Mekong-river country serves as Lippo’s stepping stone in its expansion in the Southeast Asia region.

“We will build six to seven hospitals in Yangon, while the rest will be outside Yangon,” said Lippo chief executive James T. Riady, on the sidelines of inauguration of Pun Hlaing Siloam Hospital, its first joint venture hospital in Yangon, Myanmar, on Friday.

“The investment value of one hospital including the land is around $50 million,” he said.

Last year, Lippo entered a cooperation with Serge Pun & Associates (SPA) Group, a hospital developer controlled by Myanmar businessman Serge Pun. SPA Group’s Pun Hlaing Hospital was established nine years ago and specializes in neurosurgery.

Pun Hlaing Siloam Hospital is located in Pun Hlaing Golf Estate in Yangon, and has a capacity of 174 beds.

Serge Pun, SPA Group chairman, said he can see the similarity of his vision with Lippo’s in aiming to provide high-quality health services.

James said that Lippo will continue its cooperation with SPA Group in developing hospitals in Myanmar. Still, SPA Group reserves a right to invite a third party to participate in the future investment, he said.

Lippo will rely on its internal capital to fund the Myanmar expansion, James said. The banking system in Myanmar is far from being developed to finance such a large project, he said. In addition, around 200 business groups in Myanmar are still on the blacklist of American and European banks, constraining those companies’ ability to raise funding from global capital market, James said.

James said that Lippo also is setting its eyes for hospital expansion in Nepal, Sri Lanka, Cambodia, and Vietnam. The group plans to enter Nepal in 12 to 18 months, James said, followed by Sri Lanka.

The hospital business spearheads Lippo’s strategy in learning regulations and licensing policy in the respective countries, before deciding to invest in other business such as shopping mall and property development, James said.

Investor Daily and the Jakarta Globe are affiliated with Lippo Group.

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