Tuesday, September 10, 2013

The Irrawaddy Magazine

The Irrawaddy Magazine


Looking for a Few Good Cronies

Posted: 10 Sep 2013 04:47 AM PDT

Maybe yes, maybe no: U Zaw Zaw, left, stands a good chance of being taken off of Western governments' blacklists, but U Tay Za, right, might not be so lucky. (Illustrations: Sai Soe Win Kyi)

Maybe yes, maybe no: U Zaw Zaw, right, stands a good chance of being taken off of Western governments' blacklists, but U Tay Za, left, might not be so lucky. (Illustrations: Sai Soe Win Kyi)

Now that Myanmar and the nations of the West have begun to open up to each other, the search for business partners is on. The trouble, however, is that even as international sanctions against Myanmar are removed, many of the country's richest businessmen remain blacklisted for their ties to the former regime and other alleged offenses.

The individuals in question know there's a lot riding on their rehabilitation in the eyes of foreign governments. That's why some have been keen to show that they are ready to open up their books, pay their taxes and return confiscated land and other ill-gotten property.

For its part, the Obama administration is said to be actively seeking to identify a few contrite cronies who can play a more constructive role in rebuilding the country's economy. But leaders in Washington and other Western capitals will need iron-clad assurances that there will be no backsliding before any names are struck off the list.

So far, two likely candidates have come to the fore: U Zaw Zaw, the chairman of the Max Myanmar Group, and U Win Aung, the president of the Union of Myanmar Federation of Chambers of Commerce and Industry. Sources say both men could soon become poster boys for a kinder, cleaner business culture in Myanmar.

Another name that comes up regularly is U Chit Khaing, managing director of the Eden Group, one of Myanmar's largest conglomerates. When former US Secretary of State Hillary Clinton made her historic visit to Naypyitaw in November 2011, she stayed at one of his hotels; and more recently he was issued a visa to visit the United States—a sure sign that he is regarded as relatively uncontaminated by his past.

Less likely to get a clean bill of health is anyone connected with the trade in rubies and jade. In July, Washington extended its ban on imports of precious stones from Myanmar, owing to the still murky nature of an industry based in conflict-wracked border regions. Weapons dealing and having a hand in Myanmar's lucrative drugs trade are also frowned upon.

On the other hand, a good relationship with the democratic opposition will almost certainly count in your favor if you're looking to clear your name. That's why U Zaw Zaw, U Tay Za (chairman of the Htoo Trading Group), and others have been lining up to donate to the National League for Democracy (NLD).

Ironically, however, this largesse has probably done more to tarnish the name of the NLD than it has to clean up the images of its newfound benefactors. At a party fundraiser last December, for instance, the NLD was criticized for taking 70 million kyat (US $72,000) from U Tay Za and 135 million kyat ($138,000) from Sky Net, a television operator and a subsidiary of Shwe Than Lwin Company owned by U Kyaw Win, a close associate of President U Thein Sein.

A number of critics have also noted that the amount handed out to the NLD was pocket change for Myanmar's super-rich. Some highfliers have been known to blow more than $100,000 in a single night at casinos overseas.

Myanmar's tycoons also know that they have to walk a fine line to avoid upsetting the powers that be still lurking in the shadows.

Last year, for instance, a crony in his fifties who is notorious for his appetite for women and taste for expensive cars earned the ire of retired Deputy Snr-Gen Maung Aye, formerly number two in the regime that ruled until 2011, for his overtures to the NLD. Another, younger tycoon was reportedly reduced to tears when he was taken to task for visiting Daw Aung San Suu Kyi's residence and making donations to her party. He apologized profusely for his offense, but later boasted to some foreign visitors that he had "bought" the NLD and its iconic leader.

Given the predatory nature of Myanmar's economy during the years of military rule, there may be more than a few wolves in sheep's clothing out there. But according to Sean Turnell, an expert on Myanmar's economy at Macquarie University in Sydney, Australia, some may eventually see the light.

"They are political animals as much as economic ones," Mr. Turnell says of those who rose to fabulous wealth over the past two decades. "But certainly there are some, too, who may emerge as something else. On this front, I guess we have to hope so, since they are amongst the few with sufficient capital to do transformative things, if this is what their desire is."

This story first appeared in the September 2013 print issue of The Irrawaddy magazine.

India Opens Export-Import Bank Office in Rangoon

Posted: 10 Sep 2013 04:39 AM PDT

Indian Prime Minister Manmohan Singh meets Burmese President Thein Sein during a visit to Burma in May 2012. (Photo: The Irrawaddy)

RANGOON — The government-backed Export-Import Bank of India (Exim Bank) on Monday opened a representative office in Rangoon with the hope of promoting trade between India and Burma.

Exim Bank said in a statement it had already extended credit totaling US$247.43 million to projects in Burma in sectors including the railways, telecommunications, power and vehicle manufacturing and assembly.

The bank, which officially opened its representative office on Bo Yar Nyunt street, Dagon township on Monday, received a license to do so from Burma’s Financial Institutions Supervision Department in June.

The move follows Indian Prime Minister Manmohan Singh's visit to Burma in May 2012 during which India reportedly agreed to provide US$500 million for build railway and irrigation projects. India has also pledged another US$250 million for various other projects.

According to figures cited by Exim Bank, total trade between Burma and India rose by 4.1 percent to reach US$ 1.9 billion in the 2012 to 13 fiscal year.

Burma’s Border Trade Department, however, puts the figure for bilateral trade at just US$1 billion annually.

India's main exports to Burma are pharmaceuticals, iron and steel, machinery, boilers and electrical equipment.

Number of Dengue Cases, Deaths Lower Than Feared

Posted: 10 Sep 2013 04:30 AM PDT

A young child receives treatment for a dengue infection in Yangon Children's Hospital in August. (Photo: Steve Tickner / The Irrawaddy)

A young child receives treatment for a dengue infection in Yangon Children’s Hospital in August. (Photo: Steve Tickner / The Irrawaddy)

RANGOON — Several months ago, health authorities warned that Burma could be facing a dengue fever epidemic. As the rainy season begins to wind down, officials say the number of dengue cases and related deaths have been lower than expected. But some 16,000 cases and 75 deaths have still been recorded so far this year, most of them children.

"Nationwide, the trend is decreasing, and July had the highest [number of cases]. Since August it's decreasing," said Dr Ni Ni Aye, deputy director of the Health Ministry's Dengue Program. "Now, most of the townships have decreasing cases. But in some regions [in central Burma], such as Mandalay, Magwe and Sagaing, it is still slowly increasing."

Ni Ni Aye said the number of recorded dengue cases stood at more than 16,000 patients by late August and 75 people had died from the disease. "Most of the deaths are children under 5 years," she added.

Ni Ni Aye said the current total number of patients is the highest in three years, but added, "Mortality is less… than in 2010, when there were 118 deaths… We now consider this an average year; it's not very bad like in 2009."

A few months ago, health authorities warned that dengue had been spreading rapidly in Rangoon and Irrawaddy divisions and in Mon and Karen states early in the rainy season. By late June, the total number of infections had surpassed the total of the whole of 2012, and health officials feared that infections would continue to rise and reach epidemic proportions.

Burma's most deadly dengue outbreak was recorded by the Health Ministry in 1994, when 444 people died from the virus, while a 2001 epidemic killed 204 patients.

Dengue cases occur mostly during the monsoon season when the mosquitoes that transmit the disease can easily breed in clear water. These mosquito species feed during the day, putting children at school playgrounds at particular risk of infection. The disease can be fatal when it escalates and causes hemorrhaging in patients.

According to Ni Ni Aye, the lower-than-expected mortality figures this year indicate that medical treatment of dengue is improving in Burma, while the public is becoming more aware of the need to seek early treatment.

"Most of the deaths are due to late referral… They arrive in the hospital late and they experience [medical] shock syndrome already," she said. "Some of the patients cannot go to the hospital on time; most of them are from rural areas."

Dr Aung Myint Lwin, medical superintendent at Yankin Children's Hospital in Rangoon, said his hospital also recorded a decline in the number of child patients with dengue in the second half of the rainy season.

"We noticed in July there was very much a decline in admission rates," he said, adding that by late August, the hospital had treated 1,595 children for dengue, while 10 children had died from the disease.

Aung Myint Lwin said the drop in the number of new infections in Rangoon Division was in part due to preventive measures that authorities took following initial reports of a surge in dengue cases.

"We started preventive measures actively through our health departments and other sectors, especially from administrative departments, NGOs like the Red Cross and other organizations," he said. "We were destroying the mosquitoes' breeding areas and their larvae… we used chemicals."

Aung Myint Lwin said growing public mindfulness about the risks of the disease was a key factor in reducing dengue deaths. "This year the mortality rate is a little bit lower because of increasing awareness of the people. Then they will come to the hospital early, before their condition becomes worse," he said. "Most important is the realization among the common people of the danger."

Buddhist Committee’s 969 Prohibitions Prompts Meeting of Movement Backers

Posted: 10 Sep 2013 04:13 AM PDT

The monk Wimala Biwuntha shows a 969 logo during a speech at a monastery in Rangoon on April 22, 2013. (Photo: Reuters)

The monk Wimala Biwuntha shows a 969 logo during a speech at a monastery in Rangoon on April 22, 2013. (Photo: Reuters)

Monks and a number of organizations behind the Buddhist nationalist movement known as "969" will hold a meeting after a Buddhist council issued a directive banning the formation of 969-based monks' networks and prohibiting use of the movement's emblem as a symbol for Buddhism.

The State Sangha Maha Nayaka Committee (SSMNC), a government-appointed body of high-ranking monks that oversees and regulates the Buddhist clergy in Burma, issued the directive on the grounds that the 969 movement's tenets were not accordance with the rules and regulations set by the SSMNC. The order, dated Aug. 14, states that it is illegal to form monk networks organized around the principles of the 969 movement, and bars linking the 969 emblem to the Buddhist religion.

The directive makes no mentioned of what actions might be taken against those who violate the prohibition.

A meeting to discuss the directive will be held by several of the 969 organizations scattered across Burma, U Khemasarah, a Buddhist monk from Mandalay who is sympathetic to the 969 movement, told The Irrawaddy.

"I don't know why they [the SSMNC] dislike our activities, which we put great effort into. We have not even obtained any assistance from them for our movement. I am not going to say anything special at the moment, but I will when I personally meet with the SSMNC," U Khemasarah said.

He emphasized that 969 organizations were formed not for political purposes, but strictly to further nationalistic and religious causes aimed at protecting the integrity of the Burmese nation and the religion of 90 percent of its people, Buddhism.

"We don't take part in political affairs, steal others' possessions, attack or lie to others. So you cannot say we violate the ethics of a Buddhist monk. We just make our special efforts in order to preserve our race and religion," U Khemasarah said.

The monk declined to provide further details on the date, venue and agenda of the meeting, saying only that the gathering would take place soon.

The Ministry of Religious Affairs, which has given its blessing to nine monk-led organizations, has stated that it will not legally recognize 969-based networks. All 47 of the monks who make up the SSMNC disapproved of the use of the 969 emblem as a symbol of Buddhism, according to the Ministry of Religious Affairs.

"We don't approve or permit the formation of a 969 Buddhist monks' network. We didn't direct them [to form a network] either. The directive was issued with the approval of all 47 monks who are members of the SSMNC," Tun Nyunt, a director for Rangoon Division's Department of Religious Affairs, told The Irrawaddy.

During a trip to the United States in June, Union Parliament Speaker Shwe Mann said actions would be taken against 969 movement organizers, who have been blamed by some for religious strife between Buddhists and Muslims that has taken place in Burma over the last 15 months.

The 969 movement encourages Buddhists to transact all business affairs with solely Buddhist-owned enterprises, effectively acting as an indirect boycott of businesses owned by Muslims or any of Burma's other religious minorities.

In addition to the de facto economic discrimination, CDs of monk sermons that contain anti-Muslim propaganda have been widely distributed by followers of 969. The movement gained prominence in mid-2012, after violence between Buddhists and Muslims erupted in Arakan State.

Art for All Generations

Posted: 10 Sep 2013 02:33 AM PDT

A painting by Burmese artist Zaw Win (Kyee Myin Dine) of himself and his three grandchildren. (Photo: JPaing / The Irrawaddy)

RANGOON — Some people mark their birthdays with cakes and parties, but Zaw Win (Kyee Myin Dine) is celebrating somewhat differently.

In honor of his 65th birthday, the Burmese artist exhibited 65 works—including some by his three grandchildren, aged 7, 9 and 10—at a gallery in Rangoon this week.

"My painting legacy has been inherited by my grandchildren," said the artist, who has been a painter for 53 years. "This is sort of a generation art show."

At "The Generation Exhibition of Grandfather and Grandchildren," at the Professional Art Gallery, pastel drawings by Zaw Win's grandchildren are on display, along with a mix of the artist's own oil and watercolor paintings.

The most outstanding of these are his paintings of dark women figures, almost in a lacquerware style, with colorful contemporary backgrounds. Some of the paintings depict a breast-feeding mother and her child, revealing the complex nature of line drawings in traditional Burmese lacquerwares.

The full-time artist said the idea to blend these styles came through experimentation during his painting sessions. "I've used a syringe and needle to get the thin, delicate and embossed effect for those lines in the figures," he said.

The exhibition closed on Tuesday and was sponsored by Zaw Win's middle son, Myo Thu, and his family.

Venue: Professional Art Gallery, No.8 Komin Kochin Rd, Bahan Township, Rangoon.

Date: Sep 7-10

Time: 9 am to 5 pm

Admission is free.

Organizers Confident ‘Rich Men’ Will Fund $20Mln Cable Car on Karen Mountain

Posted: 09 Sep 2013 10:55 PM PDT

A view of Karen State's 722-meter-high Mount Zwekabin (on the right). (Photo: Jpaing / The Irrawaddy)

RANGOON — A laymen committee at a Buddhist pagoda on Mount Zwekabin, a well-known landmark in Karen State, said it is confident that it can raise US$20 million in funds in order to build a cable car that would transport visitors to the top of the 700-meter high limestone peak.

The committee said it had already collected more than $100,000 from private donors for the government-supported project, adding that "rich men" would donate the remaining millions of dollars needed to complete the project. According to some reports, former junta leader Than Shwe and his wife are among the wealthy donors supporting the project.

Located near the Karen State capital Hpa-an and the Salween River, Zwekabin Mountain towers over its forested surroundings and a steep, paved trail leads up to the top. On the way there are numerous shrines and atop the mountain is a gold-leaf covered stupa, which is believed to hold a Buddhist hair relic.

Buddhist pilgrims have made the roughly 3-hour climb to the mountain top for hundreds of years, and the site attracts foreign and local tourists who visit Hpa-an, although it is not nearly as well-known as Mon State's famous Kyaiktiyo Pagoda (Golden Rock).

In late July, Penang Sayadaw Bhaddnanta Pannyavamsa, one of three monks who initiated the project, told state-run media that Zwebakin Pagoda's monks had received government approval for their long-standing plan to build a cable car all the way up to 725-meter limestone peak at an estimated cost of up to $22 million.

Penang Sayadaw said the massive project would be funded by private donors seeking to make Buddhist merit by donating to the pagoda. "Since this is a religious project, we will cover the cost by the donations of donors," he was quoted as saying in a front-page article in the state-owned Myanma Alinn Daily. "The government has told us that they will assist with this project."

Penang Sayadaw said the plan to spend tens of millions of dollars on a Buddhist complex in the impoverished ethnic Karen region made sense as it would be a boon for tourism, an industry that Naypyidaw has prioritized for development. "Since this is the first cable car project in Myanmar, foreigners from all over the world will come here… By attracting many travelers, business opportunities will also develop in this region," the monk said.

Tuu Tuu Myint Thein, a spokesperson for the laymen committee in charge of the cable car project at Mount Zwekabin, said engineers from Special Methods & Engineering Techniques SDN BHD Malaysia Company and Myanmar Engineering Society would build the cable car, adding that equipment would be imported from Switzerland and the United States.

"The electric motor will be used to pull the cars from Lumbini Garden below, which is 1,650 meters from the top of mount, to the Buddha statue located at the top of Mt. Zwekabin," she said, adding that the planned cable car could carry about 40 passengers at a time.

Tuu Tuu Myint Thein told The Irrawaddy on Monday about $114,000 had been donated to the project since it was announced in late July. "We received [a donation of US$27,500] just today," she said. "We intend to implement this project within two years and estimate it will cost about $20 million."

Asked how the committee expected to raise tens of millions from the public in one of Asia's poorest countries, she said, "Rich men and businessmen from local and other areas are donating to this project." Tuu Tuu Myint Thein declined to specify which wealthy Burmese Buddhists were expected to come up with the millions of dollars, but added, "We will get all that money since we have collected so much money already in a short period."

A businessman involved in the project told The Irrawaddy that he heard that retired Burmese junta leader Than Shwe and his wife Kyaing Kyaing would contribute a significant amount of the required funding. The man, who declined to be named, said Kyaing Kyaing had previously donated to the construction a pagoda building on the mountain.

According to a businesswoman in Hpa-an, many local businessmen and senior government officials worship at Zwekabin Pagoda and many have supported the monks' construction activities at the Buddhist complex on the mountain in the past.

Nan Khin Htwe Myint, chairperson for the National League for Democracy in Karen State, said the cable car project reportedly enjoys high-level government support, adding, "I just heard that a former official supports this project but I could not confirm it."

Asked if she supported the construction of multi-million dollar, state-of-the-art cable car in the impoverished region, Nan Khin Htwe Myint said, "There are too many schools [in Karen State] that need to be repaired and there are too many places that still need donations, so I would prefer to keep the mountain natural and spend this money in
other, more needy places.

"I prefer the natural state [of the mountain]. Climbing a mountain naturally is also good although it is hard. But as development project, it is also good."

Aung Ko, manager of Shwe Kyay Si Pilgrimage Tour in Rangoon, said few visitors currently come to Zwekabin Mountain "since it is very steep" and not very well-known nationwide. He said constructing a $20 million cable car would attract many more visitors to the area, as "it will be the very first cable car system in the country, so there will be a lot
of interest in that."

China Boosts Tin Ore Imports From Burma as Indonesian Supply Dries Up

Posted: 09 Sep 2013 10:46 PM PDT

Chinese workers unload a roll of tin plate at Baosteel plant on the outskirts of Shanghai November 20, 2003. China’s Baosteel, the world’s fourth most valuable steel maker, said on Thursday it expects net profit to hold steady in 2004 after an expected near-doubling this year, as the country’s steel-intensive economic expansion continues.

SINGAPORE — China's tin industry is turning to Burma to help plug a gap in the supply of raw materials after new trading rules in the world's top exporter Indonesia squeezed its major source of refined tin.

China, the world's top metals consumer, has more than doubled its imports of tin ore and concentrates from Burma this year, shoring up an alternative source of the metal used mainly for solder in its vast electronics industry.

Pulling in more ore from Burma—still a relatively small player—will add to China's efforts to source tin from Bolivia, Japan, Malaysia and LME stockpiles, and could crimp sales by Indonesia in the long-term, said industry experts.

"Myanmar isn't going to solve China's problems—Indonesia is the dominant exporter in the world," said Stephen Briggs of BNP Paribas in London. "But China is clearly trying to diversify its sources, whether it's tin or anything else. It certainly isn't a great thing for Indonesia."

China has relied on Indonesia for the bulk of its tin imports, taking more than 15,000 tons last year, but sales have slumped since the Southeast Asian nation ruled that producers could only sell ingots of the highest purity, a move aimed at boosting the value of its exports.

The Indonesian market has been further muddied by government attempts to ensure all of its tin is traded through a local exchange, a move which has yet to gain traction with customers, and its biggest exporter has halted shipments.

China's imports from Indonesia fell 72 percent in July from a year earlier to just 484 tons of refined tin.

By contrast, tin ore shipped from Burma across the border for processing in Yunnan, China's key tin producing province, more than tripled in July to 8,392 tons, China trade data shows. Imports for the first seven months of the year are already more than total for the whole of 2012.

The Burma figures are for tin ore and concentrate and do not specify tin content, so it is not possible to work out how much tin would be produced from the increased exports.

Traders put Burma's total production at the "low single-digit thousands" of tons, compared with 100,000 tons for Indonesia.

China also produces about 100,000 tons of tin a year, but faces a shortfall of 50,000-60,000 tons, which it meets through recycling and through imports of unrefined ore and refined tin, said Peter Kettle of global industry group ITRI.

Chinese buying could help speed development of Burma's fragmented industry as political changes lead to increased investment.

"We could see Myanmar emerging in the long run as quite an important tin producer," said Kettle.

"There is quite a bit of interest in the long-term with the changes in the political regime and encouragement of international investment," he said.

Traders are also eyeing the country but say China is likely to be the dominant buyer for the near future.

"We make some efforts to get into that country but it's not easy," said a source at an international trading house.

"There is a lot of artisanal mining there. You need to be prepared to go into the country and pay people in cash and arrange logistics yourself, and I'm sure the Chinese are able to do that," he said.

Additional reporting by Aung Hla Tun in Rangoon.

Pawnshops Hit Paydirt as Southeast Asians Sweat Before Pay Day

Posted: 09 Sep 2013 10:38 PM PDT

Valuer Eve Chong demonstrates the valuation process for jewelry at a MoneyMax pawn shop outlet in Singapore. (Photo: Reuters / Edgar Su)

SINGAPORE/BANGKOK — Faced with rising living costs and unable to wait until pay day, growing numbers of Southeast Asians are putting their gold jewelry and designer watches in hock, creating a boom in pawnshops across Singapore, Malaysia, Thailand and Vietnam.

In a sign of the times, the cast of US reality TV show "Pawn Stars" paid a visit last month, promoting their show in a region where the industry is on the ascent.

Pawnshop businesses are also in flavor with investors. The share price for Singapore's MoneyMax Financial Services stands around 30 percent higher than its initial public offering last month.

These companies are trying to shake off their image as lenders of last resort to the desperate. But their newfound success may signal trouble for Southeast Asian economies, as pawnshops and other similar businesses typically outperform when household budgets are strained.

Inside an outlet of Cash Converters on the east side of Singapore, a golden statue of the Laughing Buddha sat alongside branded handbags, an old violin, electronic goods and cases full of diamond rings. Young and old customers were having items valued at the counter, while buyers hunted for a bargain.

"As the economy gets a bit tighter, we are definitely getting more customers coming in," said Jeremy Taylor, Southeast Asia managing director for the company.

"Southeast Asia was quite protected from what was going on in Europe, but now when we see China slowing down a little bit, then things start to get a bit more tense."

Cash Converters is a franchised network offering pawnbroking loans in certain markets like Australia, but in Singapore and Malaysia it specializes in buying and reselling second-hand goods.

Taylor reckoned the firm had seen 5-10 percent more customers walking through the doors of its 15 outlets in Singapore and Malaysia during the past three months.

With Thailand in a technical recession and economic growth wobbling in Indonesia and Malaysia, pawnshops are in a sweet spot.

Malaysia, Singapore and Thailand occupy three of the top four positions for household debt levels in Asia, according to a Credit Suisse report in late July, and people who don't qualify for bank loans are turning more and more to these alternative sources of finance.

Many pawnshops in Southeast Asia have swapped the traditional grilled store fronts, which may be intimidating to customers, for a more modern, less forbidding look. Customers also cite the convenience and flexibility to redeem their items when their cash flow improves.

Cash Converters plans to open more stores by the first half of next year, and is expanding its services to house calls and online commerce targeting the younger generation.

Thailand's largest private pawnshop operator, Easy Money, has seen a 15-20 percent rise in the number of customers in recent months, especially in areas near Bangkok, said Managing Director Sittiwit Tangthanakiat.

The company has posted an annual average growth rate of 50-60 percent in the value of pawned assets since it opened in 2005. It has also more than doubled its outlets to 27 nationwide from 12 last year, and plans to open two more next year.

"If household debts continue to rise, we think there will be more customers going to pawnshops," Tangthanakiat said, estimating that Thailand's pawnshop industry is worth up to 170 billion baht ($5.3 billion).

Pawnshops and the kind of items that people pledge can be a window to the economy, said Rick and Corey Harrison, the father and son duo of "Pawn Stars" on their first trip to Asia.

"When the housing market fell in Las Vegas, we got so many Rolex and Tag Heuer watches it was ridiculous," Corey said in an interview.

"There were all these mortgage brokers that made a lot of money while they were getting loans to anybody to buy a house. And when times got bad, they all went broke real quick and the first things to go were the high-end watches and stuff like that."

Rick said there is huge potential for the pawnshop industry in Asia as it has become a "more mainstream" way of getting a quick buck and many pawnshops in the region are not allowed to charge high interest rates.

Urgent Cash

A supervisor at a property company in Singapore said he was put off by the lengthy process and all the documentation needed to get a personal loan from a bank. Trying to cope with soaring living costs, Ryan, who declined to give his full name, has turned to pawnshops instead.

He pawns his gold chain and ring several times a year for S$300-400 each time in order to pay off utility and phone bills. Once he gets his salary, he redeems his belongings.

"Sometimes you need cash immediately. It's something to resolve at that moment and you can't be waiting for the bank to call you," he said.

There are around 200 pawnshops in Singapore now, up from 114 in 2008. The amount of pawnshop loans given out hit S$7.1 billion ($5.5 billion) last year, 3.9 times the 2008 figure.

"In Singapore, the current legislated maximum interest rate for pawn loans of 1.5 percent a month is one of the lowest worldwide, which partly accounts for its popularity here," said Yeah Lee Ching, executive director of ValueMax Group.

It's not just individuals who are cash-strapped. Credit-starved companies in Vietnam are even selling cars and putting up their offices as collateral to stay afloat.

"Since the economic crisis in 2009 up until now, the number of business owners that have come to us has increased remarkably," said a pawnshop owner in Hanoi.

With some bank lending rates at more than 15 percent, an estimated 120,000 small and medium-sized businesses had stopped operating since 2011, many due to the lack of credit from state-run banks saddled with bad debt. A Vietnamese newspaper put the number of pawnshops at 2,710 in Hanoi alone.

Profitable Business

In Malaysia, pawnbrokers are typically run by ethnic Chinese families, but more government-linked firms have entered the business to cater for hard-up Muslim Malays.

Pos Malaysia, the national postal service, branched into the Islamic pawnbroking business or Ar-Rahnu in July 2012. "The business is already contributing to profits," chief executive Iskandar Mizal Mahmood said.

Singapore's MoneyMax, which has pawnbroking and jewelry retail businesses, reported net profit of S$5.8 million last year, five times the 2010 level. The company, which has 29 outlets, also plans to open a few more in the next 12 months.

Its pawnbroking business enjoys pre-tax profit margins of more than 30 percent due to the high frequency of transactions, chief executive Peter Lim told Reuters, while handling an intricately designed gold belt that he said had probably been a family heirloom before it was pawned.

"I loan $1,000 to you, within three weeks you've paid me back already, and I'll loan it to another person. That's why you see this kind of margins, the money keeps going back and forth," Lim said.

One of the biggest risks for pawnshops in the region is their exposure to the price volatility of gold, a favored item for customers to pawn. Gold hit a record high of about $1,920 per ounce in 2011 as central banks around the world launched stimulus measures, but has fallen off to about $1,390.

However, analysts said this doesn't detract too much from the business fundamentals of pawnshops.

"If you're talking about the business model of pawnshops, it's a fairly good business. It has steady growth," said Song Seng Wun, regional economist at CIMB Research. "There's always that pool of people who go in and out of pawnshops."

Additional reporting by Nguyen Phuong Linh in Hanoi, Siva Sithraputhran in Kuala Lumpur and Kevin Lim in Singapore.

Study: 1 in 10 Men in Parts of Asia Have Raped

Posted: 09 Sep 2013 10:31 PM PDT

A protester holds a placard during a rally outside the residence of Delhi's Chief Minister Sheila Dixit in New Delhi after an hours-long gang-rape and near-fatal beating of a 23-year-old student on a bus in New Delhi last year. (Photo: Reuters)

LONDON — About 1 in 10 men in some parts of Asia admitted raping a woman who was not their partner, according to the first large studies of rape and sexual violence. When their wife or girlfriend was included, that figure rose to about a quarter.

International researchers said their startling findings should change perceptions about how common violence against women is and prompt major campaigns to prevent it. Still, the results were based on a survey of only six Asian countries and the authors said it was uncertain what rates were like elsewhere in the region and beyond. They said engrained sexist attitudes contributed, but that other factors like poverty or being emotionally and physically abused as children were major risk factors for men's violent behavior.

A previous report from the World Health Organization found one third of women worldwide say they have been victims of domestic or sexual violence.

"It's clear violence against women is far more widespread in the general population than we thought," said Rachel Jewkes of South Africa's Medical Research Council, who led the two studies. The research was paid for by several United Nations agencies and Australia, Britain, Norway and Sweden. The papers were published online Tuesday in the journal, Lancet Global Health.

In the new research, male interviewers surveyed more than 10,000 men in Bangladesh, China, Cambodia, Indonesia, Sri Lanka and Papa New Guinea. The word "rape" was not used in the questions, but the men were asked if they had ever forced a woman to have sex when she wasn't willing or if they had ever forced sex on someone who was too drunk or drugged to consent.

In most places, scientists concluded between 6 to 8 percent of men raped a woman who wasn't their partner. When they included wives and girlfriends, the figures were mostly between 30 to 57 percent. The lowest rates were in Bangladesh and Indonesia and the highest were in Papa New Guinea. Previous studies of rape have been done in South Africa, where nearly 40 percent of men are believed to have raped a woman.

Of those who acknowledged forcing a woman to have sex, more than 70 percent of men said it was because of "sexual entitlement." Nearly 60 percent said they were bored or wanted to have fun while about 40 percent said it was because they were angry or wanted to punish the woman. Only about half of the men said they felt guilty and 23 percent had been imprisoned for a rape.

"The problem is shocking but anyplace we have looked, we see partner violence, victimization and sexual violence," said Michele Decker, an assistant professor at Johns Hopkins Bloomberg School of Public Health, who co-wrote an accompanying commentary. "Rape doesn't just involve someone with a gun to a woman's head," she said. "People tend to think of rape as something someone else would do."

"It's not enough to focus on services for women," said Charlotte Watts, head of the Gender, Violence and Health Centre at the London School of Hygiene and Tropical Medicine, who was not part of the study. She said some programs in Africa based on challenging traditional ideas of masculinity are proving successful.

"It may be that the culture where they grew up condones violence, but it's not impossible to change that," she said.

Sectarian Riots Spread in North India, 31 dead

Posted: 09 Sep 2013 10:19 PM PDT

A woman who was injured in communal clashes is rushed to a hospital for treatment in Muzaffarnagar in the northern Indian state of Uttar Pradesh on Monday. (Photo: Reuters)

MUZAFFARNAGAR, India — Security forces have been ordered to shoot rioters on sight, as sectarian violence spread in northern India on Monday despite an army-enforced curfew imposed after deadly weekend clashes broke out between Hindus and Muslims.

Gunfire and street battles that erupted Saturday in villages around Muzaffarnagar in Uttar Pradesh state have killed at least 31 people and left many more wounded or missing, police said. Both sides have blamed the other for starting the violence.

Police had arrested 200 people by Monday evening. Soldiers deployed to the region have been given orders to shoot rioters on sight, state government official Kamal Saxena said.

Still, the violence spread to the neighboring districts of Shamli and Meerut. A state of alert has been declared for Uttar Pradesh, the scene of some of India's worst communal violence when a Hindu mob razed a 16th century mosque in Ayodhya in 1992.

Hundreds of people, some packed into bullock carts, tried to flee areas where their community represents a minority. One family trying to leave Kuttba village on Sunday was beaten with metal rods and wooden sticks when caught between fighting factions.

"The whole village was very tense. I wanted to send my family to a safer place," said Munavar, 24, who uses only one name, as his wife, 8-month-old daughter and 6-year-old niece lay on hospital beds nearby wearing bloody clothes and gauze bandages over their heads.

The violence began Saturday night after a meeting of thousands of Hindu farmers called for justice in the Aug. 27 killing of three young men from Kawal village. Officials said some farmers delivered hate-filled speeches against Muslims.

Clashes with Muslims broke out after the meeting, with many using guns, swords, stones or knives, senior police officer Arun Kumar said.

One 26-year-old farmer, Anuvesh Baliyan, said he and others were attacked in Purvalian village as they were returning home on a tractor from the meeting. He said a mob wielding metal rods and swords surrounded the tractor and began beating them.

"We hid in a field for a full night until troops arrived the next day," he said at Muzaffarnagar's hospital, where he was being treated for sword wounds to his head and leg.

In the village of Mirapur Padav, 50-year-old Salma Liaquat said she was sitting in her open-sided hut Monday morning when four men came out of the forest, shot her in the leg with a pistol and ran away. She and her neighbors, nervous about the rising tension, had asked police to patrol the area.

"We kept calling the police because we were scared," neighbor Shahid Ansari said. "But they didn't come until after the attack."

Hindu and Muslim patients were being kept in separate rooms at the hospital in Muzaffarnagar, about 125 kilometers (78 miles) north of New Delhi.

Prime Minister Manmohan Singh expressed grief and shock over the deaths, while the central government warned that communal violence was expected to escalate further in the run-up to next year's national elections. Already this year, 451 incidents have been reported, compared with 410 for all of 2012, Home Minister Sushilkumar Shinde said.

As local politicians on all sides accused one another of inciting the latest violence in Uttar Pradesh, the state barred people including politicians from visiting riot-affected areas.

The state's opposition blamed the government for failing to maintain law and order, while the state's top elected official accused opposition parties of inciting the violence to undermine his administration.

"The violence is a political conspiracy to defame and destabilize my government," Chief Minister Akhilesh Yadav said.

Shops and schools were closed Monday in and around Muzaffarnagar. Soldiers were searching homes for weapons. Some 5,000 paramilitary officers joined the troops and thousands of local police on patrol.

Authorities stopped all newspaper deliveries and TV broadcasts in the area, but incendiary rumors spread by mobile phones and social media were still fueling the violence and making it difficult for soldiers to restore calm, state police inspector Ashish Gupta said.

The neighboring mountain state of Uttarakhand was also on alert.

Associated Press writer Biswajeet Banerjee reported from Lucknow, India.

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