Tuesday, August 19, 2014

Democratic Voice of Burma

Democratic Voice of Burma

Bullet Points: 19 August 2014

Posted: 19 Aug 2014 05:19 AM PDT

On today's edition of Bullet Points:

Twenty two temporary relief camps closed near Pegu as residents return to their flood-damaged houses.

Local police and villagers in Sintgu, Mandalay Division, say they are filing lawsuits against each other.

Despite the recent release of some child soldiers, young people in Burma remain trapped in military service.

You can watch Bullet Points every weeknight on DVB TV after the 7 o'clock news.

Route home blocked for child soldiers

Posted: 19 Aug 2014 05:15 AM PDT

A full two years after the Burmese government pledged to release all children from military service, many young victims of underage recruitment remain trapped in the army’s ranks.

Under a 2012 agreement between Naypyidaw and the United Nations Children's Fund, all underage recruits were to be sent home to their families.

Yet some soldiers say they were recruited as minors and that the Burmese military hasn’t done enough to tackle the problem. They say  bureaucratic processes are deliberately keeping young soldiers from returning to their families.

"I applied for discharge at the end of 2012, and the only development since that time was when my battalion received a fax indicating that I would be discharged soon," said an under-aged recruit who wished to remain anonymous. "I have received no update for over a year."

On the first of August, the Burmese government was widely praised for the release of 91 children and persons under the age of 18. The United Nations children's fund, UNICEF, congratulated the government, stating that the action indicated a real commitment to upholding international law.

While several such releases have granted freedom to some 360 children since the agreement was made in 2012, the piecemeal release of coerced under-aged recruits has done little to relieve the heartache of parents still longing for their lost boys.

"We just really want to have our son discharged," a parent of one such boy told DVB. "It has been a long while, a very long while."

The Burmese government's pledge also guarantees freedom for those who were recruited as minors but have since come of age while serving in the military. For those young persons, bureaucratic stumbling blocks are often preventing them from being discharged.

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"There are usually delays when a [child soldier] seeking to discharge cannot provide all necessary paperwork," said Thet Wai, an activist working with Facilitators Network, which is partnered with the International Labour Organization (ILO). He said that even when soldiers present all of the necessary paper, authorities are creating delays during processing measures, which he argues betrays "their lack of respect for the law".

As the government stalls on the release of children already serving in the military, many say that even more are still being forced into the ranks. The ILO believes that about 50 youths have been forcibly recruited since 2013.

Charu Lata Hogg,  the Asia programme manager for Child Soldiers International, told DVB earlier this month that without reforms to recruitment procedures, accountability and monitoring, Burma's children will remain at risk; some are kidnapped from temples or markets, others duped into enlisting with the promise of an education.

Sintgu police, villagers vow to sue each other for violence

Posted: 19 Aug 2014 01:56 AM PDT

Both local police in Sintgu and a group of villagers say they are filing lawsuits against each other following a violent confrontation in the Mandalay Division town last week.

The local residents' group in Nyaungwun village said they are filing charges against the officers for causing injury and destroying property last Thursday when a woman protestor was shot in the leg during the scuffle.

The police claim the woman, named as Than Kyin Nu, was shot accidently when a police officer's gun went off as villagers tried to snatch it from him.

However, a lawyer representing the villagers, who were protesting against land seizures, said the wound sustained by Than Kyin Nu indicated the bullet did not enter her leg at close range but was fired from a distance.

"The wound on Than Kyin Nu's leg indicated that the bullet came from about 30 to 50 yardsaway. An x-ray showed that her bone was shattered. If she was shot at close-range, the whole leg would have been blown off," said Aung Thein.

"The police's claim that the villagers tried to snatch guns from them is unsupported – why would a woman do something like this and risk getting shot?" he added.

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Meanwhile, a police sergeant at nearby Latpanhla police station insisted the police have video and photographic evidence showing that the roughly 200 villagers were the aggressors and that several policemen were also injured in the melee. He said the police office has filed charges against the villagers for injuring and kidnapping the policemen.

"The Nyaungwun villagers have been holding rallies for some time at the field where the incident took place," he said. "We were simply there to arrest a man who lived in a house beside the field.

"However, when the protestors saw us, they started throwing rocks at us. We tried to stop them but the mob grew bigger and bigger. We fired warning shots into the air but they tried to snatch our guns."

Responding to a question by DVB, the police sergeant said his office was planning to sue the villagers who appear in the video footage taken by the police at the scene.

"It's basically everyone in the village," he said. "I was there too. We could only duck for cover as they attacked us."

The 200 villagers reportedly overpowered the 40 police officers and detained them for a short time last Thursday, before police supervisors negotiated their release.

The villagers allege that more than 6,000 acres of land in Nyaungwun was confiscated from them by the military in 1991.

Pegu locals return home as flood levels subside

Posted: 18 Aug 2014 11:47 PM PDT

As water levels in Pegu Division slowly subside, thousands of locals are returning home from relief centres while schools in the area began reopening on Monday.

The townships of Pegu, Thanatpin and Kawa were inundated with severe seasonal floods beginning on 3 August, forcing more than 10,000 residents to evacuate their homes and seek shelter in nearby relief centres.

Khin Thein Maung, the divisional administrator of Pegu, officially known as Bago, confirmed to DVB on Monday that most of the thousands of flood victims have begun leaving the shelters to return to their homes.

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"The evacuees are heading home now as the water has subsided. We [Pegu government authorities] are sending aid packages to the affected neighbourhoods," he said, adding that over 10,000 acres of farmland were submerged in the floods, half of which was completely destroyed.

Meanwhile, all 22 relief camps in Thanatpin have now been closed, said local lower house MP Myint Oo.

"Most of the victims of the floods were taking shelter at their friends' and relatives' homes," Myint Oo said. "Right now, all 22 flood shelters in the area have been closed and we are now delivering aid to them at their homes."

In Thanatpin, more than 80 percent of 50,000 acres of farmland were destroyed during ten days of flooding, he added.

Myo Khine, a National League for Democracy official in Kawa Township, said that evacuees have begun to return home as the ten flood camps around the area have been closed down.

Roughly 20,000 acres of farmland in Kawa Township were destroyed in the floods, he said.

Burma must boost SMEs

Posted: 18 Aug 2014 07:46 PM PDT

The story of Burma’s economic resurgence has attracted investors from all over the world, and most of the attention has been devoted to big businesses and multinationals. But the country also has a strong entrepreneurial spirit that has yet to be properly tapped.

Both domestic and international investors feel that in order to bring out the best in the country’s economy, the government needs to create a friendlier environment for small and medium-sized enterprises (SMEs) and local businesses.

Promoting sustainable local businesses becomes even more important as the pending formation of the ASEAN Economic Community (AEC) eventually will bring down many barriers to businesses and freer flow of goods, services and certain professionals.

“When the barriers in each country fall, companies of all sizes will face enormous competitive pressures, not only from the traditional players in their existing market, but also from those that come from other countries,” said Wai Phyo, managing director of Yathar Cho Industry Ltd, one of the largest manufacturing and distribution companies in Burma.

“SMEs will see greater challenges once they compete on the regional level as they are already facing fierce competition in their local markets,” he said. “They will win or lose; it’s a matter of how prepared they are and how broad a mindset they have.”

SMEs are considered the backbone of the international economy, employing 95 percent of all workers and make up 90 percent of all companies, but Burma’s government lacks have strong policies to support SME activity, according to Wai Phyo.

“Burma is definitely not ready for SMEs,” he said. “There are three aspects necessary for SMEs to survive: funding, markets and technology — all of which are not yet present in Burma. Every single area is weak and we still need a lot of help.”

Although more banks are now operating in Burma, facilities to serve local small businesses are not yet available. Loans are limited to those backed by collateral, and credit guarantee options are not provided.

“SMEs are small. They don’t have a lot and if banks are insisting on collateral for loans with interest rates of 8.5 percent, it’s extremely difficult for SMEs to survive,” said Wai Phyo.

For Thai banks that are gradually entering Burma, small-business customers represent a promising group that should be helped, in the view of state-owned Krung Thai Bank Plc, which recently opened a representative office in Rangoon.

Wutichai Sermsongsakunchai chief representative for Krung Thai Bank in Burma, agreed that banks in Burma are still concentrate on collateralised loans that provide only 30-40 percent of the guarantee.

“Banks should consider the character of the borrower and other factors such as willingness to pay and the ability to pay rather than relying only on collateral loans,” he said.

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He noted that the Burmese government has announced policies to encourage local entrepreneurs and foreign investment. As well, organisations such as the Asian Development Bank and the Japan International Cooperation Agency (JICA) have opened offices in the country to provide indirect loans for local entrepreneurs and governments through local organisations such as the Small & Medium Industrial Development Bank.

However, the amount of financial assistance available is not sufficient for Burma businesses to prosper, according to Mr Wutichai, who added that businesses need help in other ways as well.

“Thai banks have provided various trade finance programmes, technical know-how, financial support and business training for local people,” he said.

“For SMEs, development is still in its initial phrase so investors have to carefully choose the industry. Simple labour-intensive manufacturing such as textiles and garments is one area that is usually looked into as it does not require a lot of infrastructure and technology.”

Looking at Burma from the regional perspective, Wai Phyo observed that the attempt to liberalise the ASEAN market and establish a level playing field has been quite successful, but there is still a huge gap to close when it comes to local facilitation.

“I think the playing field is extremely level at the moment. What we need now is to nurture our local players to make sure that they can survive not only in their local markets, but in the regional market to fulfill the AEC dream.”

The larger companies will definitely be ahead of the game, but this doesn’t rule out opportunities for small businesses, which can be part of a larger supply chain.

“If SME owners are actively looking for a change and are ready to adjust fast enough, they will be integrated into the larger market and their businesses will grow,” he said.

Retail and Distribution

Because manufacturing in Burma is still negligible as it is emerges from decades of isolation, there is huge demand for goods and services from countries such as Thailand. From food and beverage products to pharmaceuticals, Burma’s growing consumer market is waiting to be served.

“Modern trade [retail] in Burma is still small and there is still a lot to develop in the retail environment,” said Vivek Dhawan, CEO of Mega Lifesciences, one of the largest distribution and marketing companies in the country. Over two decades in Burma, starting as a pharmaceutical distributor, it has built up a network with thousands of small local and family-run shops.

Only 3-5 percent of the products in Mega are from local brands while the rest are imported from India, China, Thailand and elsewhere.

KTB’s Mr Wutichai agreed that lack of manufacturing facilities for consumer goods in Burma spelled a big opportunity for local investors.

“Products from Thailand are expensive and considered as premium by local people, so another opportunity for SME business is in the consumer goods industry,” he said.

Mr Dhawan adds most companies that do manufacture and distribute their own products do so on a very small scale as the economy is still small.

“There are opportunities in Burma everywhere, but one has to enter the market with a long-term view,” he said. “It’s a new country and if people are ready to spend some time in Burma, there are plenty of opportunities.”

Already he is seeing many local startups and more local products are available, which is a good sign for the future.

“In five to 10 years’ time the Burmese economy will grow. It’s just a matter of time and now there is room for everything,” said Mr Dhawan. “The challenge is that you may need to start small and learn along the way. As consumer demand increases, the business will grow.”

The challenge for Burma's retailers and distributors is not the AEC but is the fact that consumption in the country is still small, he added. “GDP grows with the level of consumption and right now there are only few consumer cities.”

Wai Phyo is ready for that growth through another one of his companies, Mercury Distribution. Established in 2005 with only three trucks, it now covers 55 percent of the country.

“You may think that the coverage is very small, but in Burma there are certain areas where you don’t need to go because not every province is densely populated, such as in the mountainous regions,” he explained.

“In Burma, foreign companies cannot trade so they need to find local companies that can import their products. We are actively looking and planning to expand to import more products from foreigners.”

Instant Food

As the country heads towards growth that transforms the economy and the lives of its citizens, the consumption of convenience foods such as instant noodles and others is on the rise. Wai Phyo and other distributors are benefitting.

His Yathar Cho Industry, one of the largest citizen-own manufacturers and distributors, handles Yum Yum brand instant noodles in Burma under licence from Ajinomoto, are he is planning to tap into a wider consumer market.

“There is a huge growth potential for Burma’s instant noodle market,” he said. “Comparing the populations of Burma and Thailand, we are not that different but consumption of instant noodles in Thailand is so much higher.”

A Thai person consumes between 42 and 45 packs of instant noodles a year, compared with just seven in Burma, he said.

Additionally, he plans to expand into the regional market once the AEC becomes a reality.

“We may develop unique signature products from Burma and sell to countries across the region,” he said. “I wouldn’t be so bold to set up a factory in Thailand or Vietnam immediately. It will be a probing mission of trying to export products here and there and see how the market reacts.”

 

This article was originally published in the Bangkok Post on 18 August 2014.
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