Democratic Voice of Burma

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• Bullet Points: 29 August 2014
• Trapped Burmese migrant workers strike in Chiang Mai
• BURMA BUSINESS WEEKLY – 29 August 2014
• Gap’s report on supplier factories detail problems
• Unity five launch last appeal against harsh sentence
• US to build two solar energy plants in Burma
• 12 Foreign companies await results on Kyaukphyu SEZ
• Shan family fights to free girl trafficked to China

Bullet Points: 29 August 2014 Posted: 29 Aug 2014 04:53 AM PDT On today's edition of Bullet Points: 100 female soldiers graduate in Rangoon. Burmese migrant workers strike in the northern Thai city of Chiang Mai. American investment to fund two giant solar energy plants in central Burma. You can watch Bullet Points every weeknight on DVB TV after the 7 o'clock news.

Trapped Burmese migrant workers strike in Chiang Mai Posted: 29 Aug 2014 04:53 AM PDT Burmese migrant workers are on strike in the northern Thai city of Chiang Mai. They say they are being held in bonded labour, and that their employer is holding their passports, forcing them to work for as little as 270 Thai baht (US$5) per day. That is half of Thailand's legal minimum wage. The striking workers say they are often not paid for months on end, despite them being due their wage on a fortnightly basis. Forty Burmese workers say they are trapped on the site. With no documents and no money, they have little other choice. They say twenty others did manage to reclaim their passports, and have since returned to Burma. “I want to get my passport back," says one infuriated worker. "The owner has been delaying our pay, telling us it will come today or tomorrow. We want to get paid regularly and we want to keep our passports.” Women have it hardest, as the lowest-paid workers on the site. Their meager pay offers little else than run-down temporary houses in the centre of Thailand's second largest city. "Today, nobody goes to work because we were not paid," says a striking female worker.  "We, the women, get 170 baht. The owner has kept our passports for about three months. He said he would give them back, but he still hasn't.” Often it takes a local workers' rights watchdog to pressure owners to pay migrant labourers. Chiang Mai-based migrant rights activist Johny Adhikari said the Burmese Embassy in Bangkok should be capable of stamping out abuse such as this. "There are officers in the [Burmese] embassy appointed by the government for assisting migrant workers," he said. Related Stories BURMA BUSINESS WEEKLY – 29 August 2014 Thailand expects trade surplus with Burma by 2016, says bank exec Bullet Points: 27 August 2014 "They should come and investigate, and they should help the workers to get their rights and salaries. The migrants should not be paid only 170- 200 baht when the Thai minimum wage for a worker is 300 baht." "I want the [Burmese] embassy to know what is happening here." The Thai economy hinges on some two million Burmese living and working in the country. However, after the Thai military took power in a bloodless coup in May, a crackdown on Burmese migrants in Chiang Mai saw many deported home. The junta has since pledged to care for Burmese migrant workers.  They have extended the time frame for unregistered migrant workers to obtain documents, and have set up offices to process claims in one step.

BURMA BUSINESS WEEKLY – 29 August 2014 Posted: 29 Aug 2014 03:59 AM PDT Ups and downs Burma's currency was stable again this week; the buying rate for Burmese kyat on Friday was 973 to the US dollar. The price of gold rose slightly to 671,300 kyat per tical, up from 669,000 kyat last week. Fuel and rice prices remained steady.   Coal plant to be built near Rangoon A 300 megawatt coal power plant is soon to be built in Thaung Khng village, 40 km south of Rangoon, local media reported on Sunday. Eleven Media cited project officials who said that villagers have been informed of the project, which will be managed by Kaung Myat Thaw Myay Company, a subsidiary of Asia World. The project will comprise two 150 MW stations and could be expanded to include three other facilities. It is intended to provide electricity primarily to Rangoon.   India to sign Free Trade Agreement with Burma India's Ministry of Commerce and Industry expects to sign a long-awaited Free Trade Agreement with the Southeast Asian trade bloc later this month, The New Indian Express reported on Monday. Minister of State Nirmala Sitharaman will travel to the Burmese capital Naypyidaw on 26-27 August for an ASEAN-Indian ministerial meeting, where the treaty will be signed. The agreement indicates India's interest in a Regional Comprehensive Economic Partnership plan that extends further across Asia and the Pacific, the report said.   Govt pulls plug on several junta-era dams Several hydropower projects initiated by Burma's former ruling junta have been indefinitely stopped, according to Deputy Minister of Electric Power Maw Thar Htwe. Speaking to reporters in Shan State on 23 August, the deputy minister said that two dams in Arakan State, one in Kachin State and another in Tenasserim Division have been halted because they are no longer relevant. He added that the ministry is seeking new partners to develop some other unspecified hydro projects.   Burma's rice exports up 40 percent Burma's rice exports have risen by 41 percent during the current fiscal year, according to the Ministry of Commerce. Industry news site Oryza reported that officials said that US$196 million in rice was exported from 1 April to 15 August, a total of 530,000 tons. The rise was attributed to increased demand from Russia, which countered lower exports to China since a ban was put in place at the start of the fiscal year. The freeze on exports to China has steeply devalued Burmese rice, but officials said that Burma and China are working on a new agreement to allow legal trade in the near future. Read more here.   Burma's companies slacking off on taxes Nearly half of Burma's registered companies filed income tax documents this year, according to a senior tax official. The Internal Revenue Department announced a 30 June deadline to declare all assets, with penalties for late submissions. Despite the announcements published in state media, many companies filed two months past the deadline while others simply didn't file at all. Last year, income tax in Rangoon alone generated about 710 billion kyat (US$710 million).   Thailand expecting trade surplus with Burma by 2016 Thailand is expecting to have a bilateral trade surplus with Burma by 2016 because of economic growth and an increase in cross-border trade, according to a senior executive of Bangkok Bank. While the first half of the fiscal year indicated a trade deficit of 40 billion baht (US$1.33 billion), the figure is expected to drop by half by the end of the year, he said. In previous years, Thailand maintained a steady trade deficit with its neighbours, largely due to vast natural gas imports. But the executive predicted increased demand for Thai products in Burma are likely to even out trade figures. Read more here.   South Korea to increase fruit imports from Burma South Korea is set to increase Burmese agricultural imports, according to Burma's Ministry of Commerce. Korean government officials and representatives of the ASEAN-Korea Centre met with the ministry on Tuesday to iron out plans to begin the import of four fruits: dragonfruit, mango, mangosteen and pomelo. Prior to the deal, Burma has maintained other successful trade relations with South Korea. Various pulses, tobacco leaves, dried fruit and raw materials used for traditional medicine are regularly exported to South Korea. Read more here.   Foreign banks apply for full-operation status Twenty-five of the 43 foreign banks that currently have representative offices in Burma have applied for full-operational status within the national banking system. About five to ten of those companies will be selected in September, according to an official from the Banks and Financial Development subcommittee. Selected banks will be able to open branches and carry out all customer services, whereas the current representative banks primarily act as liaison for investors. Read more here.   Trade between ASEAN and Canada hits $16.5bn Bilateral trade between Canada and ASEAN reached US$16.5 billion in fiscal year 2013, state media reported on Thursday. Citing Canada's Minister of International Trade, in Burma for the 3rd ASEAN Economic Ministers Summit in Naypyidaw, The New Light of Myanmar said that bilateral trade is growing by more than seven percent each year. Stock of Canadian direct investments in ASEAN increased by 34 percent to $5.7 billion, the report said.   12 Foreign companies bid for Kyaukphyu SEZ contracts Twelve companies from seven countries have submitted proposals for the development of a Special Economic Zone in Kyaukphyu, western Burma, according to the SEZ selection committee. Proposals include plans to develop factories, housing projects and the completion of a deep sea port. A call for tenders was announced earlier this year and the bidding window closed on 25 August, the secretary of the committee, Aung Kyaw Than, said. Read more here. Related Stories Trapped Burmese migrant workers strike in Chiang Mai 12 Foreign companies await results on Kyaukphyu SEZ Shan family fights to free girl trafficked to China

Gap’s report on supplier factories detail problems Posted: 29 Aug 2014 01:46 AM PDT The US Embassy of Burma released a report on Thursday voluntarily submitted by US retailer Gap Inc. detailing the compliance issues found in their two factories initially and the improvements made. Gap announced its entry into Burma in June, making it the first US clothing company to source products from its garment sector since the US government eased economic sanctions. Yangon Pan Pacific International and Myanmar Glogon are the two South Korean factories chosen in Rangoon to produce finished outerwear for Gap. According to the report, titled "Responsible Sourcing in Myanmar", which Gap submitted to the US State Department on August 25, the two factories had to instate improvements as they had several compliance issues. These problems include excessive working hours and inconsistent payment of overtime, an unclear policy on the hiring of underage workers, inappropriate behaviours from supervisors towards workers, and certain safety issues regarding health and fire prevention. Through third party audits and numerous follow-ups, Gap said in the report that the factories improved significantly before they began producing clothing orders, with one of the factories successfully resolving all the main issues by June. "These improvements are encouraging, especially considering how new many of the practices and more rigorous standards are for these factories and the garment industry in Myanmar," the report said. These issues are familiar within Burma's garment sector. The report even detailed how Gap took the extra step of ensuring that each factory's lands were not part of any dispute, as land confiscation during the military regime is now a big cause for protests by farmers and former owners demanding the land back. Related Stories US to build two solar energy plants in Burma Land prices skyrocket after unveiling of Rangoon development plan Thailand expects trade surplus with Burma by 2016, says bank exec Debbie Mesloh, Gap Inc's senior director of government and public affairs, said in an email that her company recognises the role they play as the first American retailer to begin sourcing from Burma, which is officially known as Myanmar. "Gap Inc. is committed to Myanmar and we want to be part of building a sustainable, healthy garment industry in the country," she said. "We have a long-standing partnership with our vendors in Myanmar and intend to continue working in the country as long as our vendors meet our Code of Vendor Conduct and the country continues its path to democratic reform as outlined by the United States government." Gap has previously declined to disclose their investment value into the two factories. However, Myint Soe, chairman of the Myanmar Garment Manufacturers Association, said last week that garment exports to the US will increase dramatically this year, from $1.96 million in 2013 to at least $50 million. The company is also now part of a new initiative between the two countries, announced on Thursday by a US trade representative, Michael Froman. This programme's aim is to promote and implement fundamental labour rights and good working conditions on the ground, while also developing a strategy for labour law reforms. Sai Khing Myo Tun, the spokesman for the Myanmar Trade Union Federation, said that he welcomed Gap's efforts to improve the factories. "We welcome them if they are concerned about labour rights," Sai Khing Myo Tun said. "We do need the investment and we need investors who take responsibility when they come into the country."

Unity five launch last appeal against harsh sentence Posted: 29 Aug 2014 12:47 AM PDT A final appeal against the verdict for five Unity Weekly journal employees — who were sentenced to ten years in prison with hard labour in July — was submitted to Magwe regional court on Thursday. Following the January publication of a report about an alleged secret chemical weapons facility in central Burma, the four reporters and the journal's CEO were arrested and charged for trespassing and violation of the colonial-era Official Secrets Act. Lost time and expenses associated with months of legal proceedings have since caused the journal to cease operations. The five were convicted and sentenced on 10 July, immediately prompting public outcry both within and beyond Burma. The group's legal counsel, Robert San Aung, submitted the latest appeal to the regional judge, Myint Thein, on Thursday on the grounds that they are innocent. He requested that the four reporters be released from prison and that the sentence of Tint San, the journal's executive, be reduced by half. Related Stories Military is committed to peace process, says Thein Sein Charges dropped for 50 media activists Politicians, activists criticise Thein Sein's address on corruption "I appealed to the court that my clients did not commit a crime," said Robert San Aung. "Dictators believe that journalists should write whatever the government wants. This view has no place in a progressive society. I told them that." "Furthermore," he added, "the area had no signage indicating that it was prohibited. The farmland in this area was seized without any compensation. My clients did not commit a crime. The verdict was wrong and they should be freed." Robert San Aung said he hopes that his clients —  reporters Lu Maw Naing, Sithu Soe, Aung Thura, Yazar Oo, and CEO Tint Hsan – will be granted amnesty, as President Thein Sein recently vowed to the Interim Press Council that he would try to increase protections for journalists. The court is expected to issue a decision about the appeal within one month, Robert San Aung said.

US to build two solar energy plants in Burma Posted: 28 Aug 2014 11:39 PM PDT The United States has reached an agreement with the Burmese government to develop two solar energy plants, the office of the US Trade Representative announced on Thursday. Two 150 megawatt solar energy plants will be constructed, one in Meikhtila and one in Myingyan. The project will require an investment of about US$480 million, making it one of the largest US-funded investments in Burma to date. Convalt Energy, part of the ACO Investment Group, has been selected as the managing company. The company estimates that the project will create about 400 temporary construction jobs and 100 permanent positions, the statement said. An estimated 10-12 percent of the nation's power generation is expected to come from the two projects upon its completion in 2016.   Related Stories Gap's report on supplier factories detail problems 12 Foreign companies await results on Kyaukphyu SEZ Land prices skyrocket after unveiling of Rangoon development plan

12 Foreign companies await results on Kyaukphyu SEZ Posted: 28 Aug 2014 10:53 PM PDT Twelve companies from seven countries have submitted proposals for the development of a Special Economic Zone in Kyaukphyu, western Burma, according to the SEZ selection committee. Proposals include plans to develop factories, housing projects and the completion of a deep sea port. A call for tenders was announced earlier this year and the bidding window closed on 25 August, the secretary of the committee, Aung Kyaw Than, said. "Twelve conglomerates from seven countries have shown interest in three economic zone projects: the seaport project, a housing project and a factory project. They have submitted all data and logistics for the developments,” he said. Bids were received from countries across Europe and Asia, but most of the bidders are from Southeast Asian nations. Aung Kyaw Than said that the committee will decide based on which plan can create more opportunities for local businesses. Kyaukphyu is located on the coast of Arakan State, and is expected to become a major gateway for trade. It is also the starting point of two pipelines built to deliver natural gas and crude oil to southeastern China, one of which came online last year after several years of setbacks. The project, which was envisioned by the former military junta and likely the impetus for development of the SEZ, faced major opposition from local people everywhere from Kyaukphyu to Yunnan. While many locals have accepted the SEZ project on the promise of development, concerns remain about land loss and unemployment. Most of the local people rely on fishing and farming to earn a living, and many have already issued complaints to local authorities that land has been seized or destroyed. Fishermen, also, have repeatedly claimed that dredging and pollution have taken a heavy toll on their livelihoods. The amount of fish is in rapid decline, and the seaport project has led to restrictions on when and where villagers can fish. Related Stories BURMA BUSINESS WEEKLY – 29 August 2014 US to build two solar energy plants in Burma Shan family fights to free girl trafficked to China Ba Shwe, chairman of Kyaukphyu SEZ Watch, said that he and his colleagues will continue to monitor the situation closely. The prospect of increased electrical access, better social services and work options are enticing to villagers, but many still doubt that those benefits will ever materialise, as many corporate social responsibility (CSR) projects have failed them in the past. Moreover, some villagers who have lost their land were in turn granted jobs on the port site, which are temporary and poorly paid. “We can accept the good things, but we are still very worried about possible land seizures and joblessness," said Ba Shwe. "We will keep watching investors”. The committee said that they hope to begin implementing development of the zone by April 2015. Singaporean CPG Corporation was selected as the leading consultancy firm for the development in March of this year.

Shan family fights to free girl trafficked to China Posted: 28 Aug 2014 09:47 PM PDT People smuggling is endemic on Burma's porous northern border with China. In northern centres such as Lashio, Shan State, girls as young as 14 are being stolen from their families and trafficked over the Chinese border, where they are sold into slavery or forced into marriage. Women are being bought by Chinese men for around US$3,500. An extra payment is often made if the woman becomes pregnant. In one high-profile case stemming from Naryama, a rural village on the outskirts of Lashio, one family has made progress in their fight to bring back their girl. “My sister-in-law has two children. She was taken from our village recently," said one family member. “We didn’t realise at first. After 3-4 days, we approached a woman and a Chinese man that we suspected might have kidnapped her." She enlisted the help of the village chief. "The Naryama village headman asked them, and he was informed that she was in China," she said. "So the headman sent me to China. I tried to ask where she was and tried to get there. I met her. She was with a Chinese husband. She said she was forced to marry him." "I couldn't rescue her myself. I had to return home." The market for Burmese women in China is growing. Women among the 120,000 people displaced by the ongoing civil war in Burma's north are exceptionally vulnerable, as are women from families gripped by poverty, who are often tricked by the promise of a well-paid job in China. Lashio's representative in Naypyidaw, Sai San Min, said that while the region faces an urgent trafficking problem, it is not being addressed as other problems —  like the drug trade —  take precedence. “The trafficking problem gets bigger and bigger," said Sai San Min of the Shan Nationalities League for Democracy. "But the trafficking issue is not treated as seriously as the drug trade. This needs to change.” The Palaung Women's Organisation (PWO) says the threat to girls pervades every village in a state gripped by war and a rampant opium trade. They said, however, that local law enforcement does seem to be improving. "This year we have exposed nine cases of forced marriage and one case of forced labour coming out of Lashio," says San San Htay, a local police officer and member of the Lashio branch of the state anti-trafficking task force. Related Stories BURMA BUSINESS WEEKLY – 29 August 2014 12 Foreign companies await results on Kyaukphyu SEZ China inspects Burma's rice in advance of trade agreement "Among those cases," she continued, "we arrested eight male suspects and 20 female suspects. A total of 28 people have been charged.  "The majority of trafficking victims are women and children," she confirmed. "Trafficking to China represents around 80 percent of cases. Internal trafficking accounts for four percent. About 16 percent are trafficked to Thailand." Year after year, Burmese authorities at the state and national level report human trafficking cases in the hundreds. However, according to women's rights groups such as the PWO and the Women's League of Burma, the number of women stolen away to China each year could be much higher.

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