Saturday, February 1, 2014

The Irrawaddy Magazine

The Irrawaddy Magazine


Journalists Detained for Reporting Alleged Burmese Chemical Weapons Factory

Posted: 01 Feb 2014 11:46 AM PST

Myanmar, Burma, Army, tatmadaw, chemical weapons, media, press, state secrets

A girl selling weekly journals waits for customers in Rangoon. (Photo: Reuters)

Four journalists and the CEO of the Rangoon-based Unity journal have been detained by the Burma police force's Special Branch after the newspaper reported the existence of an alleged chemical weapons factory in central Burma.

The news report last week—under the headline: "A secret chemical weapon factory of the former generals, Chinese technicians and the commander-in-chief at Pauk Township"—included photographs of the supposed chemical weapons plant in Magwe Division.

Lu Maw Naing, a reporter for the journal based in Pauk Township, and CEO Tint San were detained on Friday and Saturday, respectively, apparently for publishing state secrets.

According to his family, Lu Maw Naing was taken in for questioning on Friday night. On Saturday morning, his family was informed there would be no bail as he is facing a charge of exposing state secrets, and that he would be moved to the custody of Special Branch in nearby Pakokku.

"Police from Pauk police station said giving bail was beyond their authority. And they said higher authorities from Naypyidaw will question him," said Lu Maw Naing's wife, Ma Lwin.

"The township judge told me that he will have to face a law suit. This afternoon, the police said he was handed over to Pakokku."

Also on Saturday morning, Tint San was arrested by Police Special officers at the Unity journal's Rangoon office, according to his assistant, Thiha Aung.

"Three officers came and took him away saying they have some questions. We do not know where he was taken and what will happen yet," said Thiha Aung.

Three other journalists, Yarzar Oo, Paing Thet Kyaw and Sithu Soe were also detained Saturday, she said.

"We have to make sure first what is happening with our journalists and editor-in-chief, and we will consult with our lawyers and the Myanmar Press Council about this case and decide what to do."

Speaking to The Irrawaddy shortly before he was detained, Tint San insisted that the journal has evidence to back up its claim about the chemical weapons factory.

"I went to the factory myself. We have concrete evidence. I even left out some facts that might disclose state secrets," he said. "I'm ready to face whatever happens in the future."

The issue of the Unity journal containing the report has reportedly been pulled from shelves by the authorities.

The report in question described in detail the facility, saying it is made up of buildings around a hill that are linked by more than 1,000 feet of tunnels. The facility is known only by the number 24.

The report said Chinese technicians had been seen by locals working at the factory, and said several metal boilers and large quantities of cement had been transported there. Locals said staff at the facility have told them they are producing chemical weapons, according to the report.

The claims could not be independently verified.

The report also said that the factory was visited by Burma Army's former commander-in-chief, Snr Gen Than Shwe, in 2009, current Commander-in-Chief Min Aung Hlaing in 2011 and in 2013 by former Vice President Tin Aung Myint Oo and current Vice President Nyan Htun.

The facility was built in 2009 on more than 3,000 acres of land confiscated from farmers, the report said.

Additional reporting by Sanay Lin.

The post Journalists Detained for Reporting Alleged Burmese Chemical Weapons Factory appeared first on The Irrawaddy Magazine.

Crossing the Indo-Burmese Border on Motorcycle

Posted: 31 Jan 2014 07:23 PM PST

On the road in India's Manipur State and travelling to the India-Burma border crossing. Click on the box below to see more images. (Photo: Emilie Röell)

On the road in India's Manipur State and travelling to the India-Burma border crossing. Click on the box below to see more images. (Photo: Emilie Röell)

MOREH/TAMU — After a long and thorough inspection of our documents and various exchanges with colleagues in Naypyidaw, the white-suited immigration officer finally laid down the phone, turned towards us, broke into a huge smile, and said: "Welcome to Myanmar. We have been expecting you."

Thus we concluded hours and hours of waiting, first on the Indian side of the border at the town of Moreh, and then in Tamu town on the Burma side. Our hearts jumped. We had just been allowed to cross overland from India into Burma independently, and were probably the first foreigners to do so in decades!

We had been traveling for six weeks, setting out from Delhi on a classic Indian-built Royal Enfield motorcycle, to ride more than 7,000 kilometers across Uttar Pradesh, Nepal, West Bengal and Sikkim, Bhutan and India's Northeastern States of Assam, Nagaland and Manipur towards our aspired destination, Rangoon. We were carrying a by now somewhat crumpled official letter from the Burmese government granting us and the motorcycle permission to cross, but had not been sure it would convince the border officials. Now, nothing else could get in the way of the successful completion of our journey.

For many days, our speculations on what we would encounter at the Burmese-Indo border had run wild. Not only in terms of our own doubtful passage; we were also very curious about the situation in India's restive Northeast and what our trip through the border region might tell us about present and future Burma-India relations.

During colonial rule, the British security perception, her policy of frontier management, and, above all, her imperial interest did not allow local economic potential to grow across the border. And the security perception of post-colonial India and Burma has treated the borders as vulnerable peripheries. Whilst informal cross-border trade and movement of people have long taken place, generally the border at Moreh, in Manipur State, and Tamu, in Sagaing Division, has been characterized by an absence of intensive trading and cross-border economic cooperation.

But lately, after many years of such protectionism, the border at Moreh and Tamu has started to feature prominently on the agenda of diplomatic talks between India and Burma. Since the mid-1990s, the two countries have been discussing plans to expand border trade and build a four-lane, 3,200-km highway connecting India, Burma and Thailand. These ambitions form part of India's Look East Policy, through which it seeks better connections with the increasingly prosperous nations of East and Southeast Asia, bolstering its standing as a regional power.

Now that Burma is opening up, reforming its growing economy and seeking to enhance regional trade relations, officials in both countries herald the border region at Moreh and Tamu as the future "gateway" between India and the regional bloc of the Association of Southeast Asian Nations (Asean).

However, when we crossed the border, we found that there is still little to show for this promising future.

We set out for Moreh on a Monday afternoon, leaving from Imphal, the capital of Manipur State, much later than planned due to a punctured tire. Already on the road towards Moreh, it was clear that this area was unlike any of India's other frontiers we had passed during our journey. Rather than the hordes of trucks we had passed near India's borders with Nepal and Bhutan, here we only met a trickle of small loaded trucks returning from border shopping. Actually, apart from the regular convoys of army vehicles, we mostly found ourselves alone on the road, where we were warned by regular road signs not to "pay money to anyone in uniform or UG [underground] groups."

We had been traveling through heavily militarized areas for days now, but still not gotten used to the ubiquity of soldiers, guns and tanks in this part of India. From the start of our journey, traveling through India's restive Northeastern states had worried us. This remote area—connected to the rest of India only through the precarious 22 km-long land corridor passing through Siliguri in West Bengal (appropriately described as the "Chicken’s Neck")—used to be made up of autonomous kingdoms or chiefdoms, some of which lasted until after the departure of the British.

Resenting becoming a part of India after independence, a "mainland" they culturally felt and continue to feel little connection with, the region has as many as 30 armed ethnic minority insurgent organizations. Their demands range from secession to political autonomy and the right to self-determination. Internal fracturing among the insurgents and dubious performance by the Assam Rifles battalions that have long been deployed to bring security to the region, add to the troubles.

On the way towards the border we passed various check posts manned by these Assam Rifles regiments, and a couple of times we were waved down and asked what we were doing riding towards a closed border. Our crumpled official letter and elaborate explanations, as well as the granting of requests for "one snap" with our photo camera, were just enough each time to be allowed to continue, and so we finally arrived at what turned out to be a small outpost of dusty streets, a handful of shops, and an unusual range of prayer houses, which included a synagogue, a church, a Buddhist pagoda, a Hindu temple, a gurdwara and a mosque.

A surprisingly small number of people were out on the streets. When my travel companion disappeared into a little office to make more photocopies of our passports and letter from the government, I was immediately surrounded by a few of the townspeople who looked at me suspiciously. One young man asked whether I was intending to go shopping on the Burma side, because, if so, I would have to hurry up since the gates would close in a few hours. All in all, Moreh turned out to be a far cry from the bustling towns we had encountered at the borders between India and Nepal and Bhutan, where we had all but disappeared in the commotion.

Proceeding towards the actual border, we were intercepted by members of the local constabulary, who, like the soldiers earlier, were in disbelief our letter would actually get us into Burma. After some debating, the commander agreed to send two of his men to the Burma border to check, and whilst we waited for their return he complained how difficult relations with the Burmese officials on the other side are, since none of them speak Hindi or English. He also expressed his dissatisfaction with Burma's lack of cooperation in matters of border security.

India is keen to maintain a close watch on the border in order to stop the illegal import of Chinese and Thai products, as well as arms and drugs, and to prevent Manipuri insurgent groups from preparing their attacks from territories in Burma beyond the reach of the Indian army. Although a few times Burma has taken action against insurgents hiding in its territory, overall it appears reluctant to cooperate with India's counter-insurgency efforts, supposedly as Burmese officials enjoy tax-levies from the militant groups instead, or so the Indian commander alleged.

The commander kindly offered to show us the so-called Indo-Burma Barrier, India's proposed solution to the problem. India has been working on this fence since 2003, after an agreement with Burma that sought to address the frequent deaths of Indian security personnel and civilians in the region. India has constructed such fences along itsborders with Pakistan and Bangladesh, and claims the measures have limited infiltration by insurgents and illegal migration.

Slated to run from India's Arunachal State and Burma's Kachin State in the north all the way down to Mizoram and Chin states in the south, the Indo-Burma Barrier has been a point of controversy since its inception, as it divides many ethnic communities in these regions. These include the Nagas, Lushei, Chins and Kukis, whose homelands straddle the regions between the two countries. Moreover, local communities in India claim that the fence actually cedes a substantial stretch of land to Burma, with recent rounds of protests in Manipur and Burmese objections over the border demarcation bringing the construction to a full stop till today.

Of course we were very curious to witness this contentious fencing project for ourselves, but sadly the offer was lost when the commander's men reappeared with positive news and we immediately rushed us to the border so that we could still cross that day.

Passing customs, we noticed the basic facilities in place. Whilst India laments the porousness of the border, even at this inspection point screening and detection machines were lacking, and the villagers that crossed along with us under the Free Movement Regime—allowing the tribes residing along the border to travel 16 km across the boundary without visa restrictions—were not checked at all.

For us, another snap with the customs officer did the trick and soon we found ourselves swerving over to the right side of the road, approaching the Burma immigration office that would warmly welcome us an hour later.

Celebrating the successful cross-over, as well as one of our birthdays, later in the evening, we went for a few beers in a little beer garden. There, a group of young men sitting next to us started a conversation in surprisingly good English. The young men were Burmese citizens of Nepali origin, and students of English on the Indian side. Whilst we tried to get information from them about the roads ahead into Burma, they preferred to tell us about their student cards that allowed them to travel around India, using India's excellent public transport system.

The young men spoke with excitement about the bustling cities and celebrations of India, and also mentioned India's healthcare facilities as something many Burmese citizens would like to have better access to. The late hour notwithstanding, the young men were headed for a Hindu celebration on the Indian side of the border, and invited us to come along. An invitation we politely declined, of course, as we were quite content being on this side of the border.

Likewise, throughout India's Northeast many people had told us how much they would like to visit Burma. Some were keen to go shopping in places like Mandalay and Rangoon. Others wanted to explore the country and its cultures, such as the participants of the annual Royal Enfield North East Riders Meet (NERM), who in October 2013 managed to organize a "never before experienced ride into the Union of Myanmar," as it was advertised on their website. Those who were aware of it mentioned with enthusiasm the new air route Golden Myanmar is now operating between Imphal and Mandalay.

Strolling around in the market of Tamu the next day, we felt there seemed to be a bit more going on there compared to Moreh. The streets were wider, and we found larger shops selling Burmese, Chinese and Thai products. Talking with shopkeepers, we learned that India's exports mainly consist of agricultural food items like edible buffalo offal, soya bari, skimmed milk powder, soya grid and wheat flour. Imports from Burma are made up of agricultural and forest produce like betel nut, dry ginger, serpentine root, and timber, as well as Chinese and Thai manufactured goods.

Formal trade, however, remains limited to 22 authorized products, outlined in a 1994 Memorandum of Understanding (MoU) between the Government of India and Burma on cooperation between the Civilian Border Authorities of the two countries.

Later that day, we set out for Kalewa, to the southeast in Sagaing Region. That India is keen to bolster the trade potential with Myanmar was clear from the road we traveled on. "YOU are travelling on India-Myanmar Friendship Road," read a signboard on the 160-km Tamu-Kalewa-Kalemyo road. The signboard was put up by Indian Army's Border Roads Organization, which built the road.

But other than that, all traces of India quickly disappeared.

Tamu may well be heralded as the future overland gateway between India and Southeast Asia, but today it remains an isolated frontier. Whilst there is curiosity on both sides, it appears that misunderstanding and suspicion continue to rule relations between the local authorities. Little progress has been made in simplifying cross-border trade, and a long-awaited bus line connecting Imphal and Mandalay remains postponed. As for so many things in Burma's future, the development of Tamu town remains a subject of speculation.

Emilie Röell is a writer based in Rangoon.

The post Crossing the Indo-Burmese Border on Motorcycle appeared first on The Irrawaddy Magazine.

Cycling: A Way Into Burma’s Heart

Posted: 31 Jan 2014 06:53 PM PST

Myanmar, Hugo Swire, Britain, Burma, Naypyidaw, Thein Sein, GDP, labor, Japan, Rangoon, Yangon,

A cyclist peddles uphill along a dirt track near Rangoon. (Photo: Dani Patteran / The Irrawaddy)

RANGOON — Boasting a stunningly diverse and largely unspoiled natural environment that includes everything from Himalayan foothills and tropical jungle to arid flatlands and more than 2,000 kms of Indian Ocean coastline, Burma is a true adventurer's paradise.

And for those willing to take up the challenge, cycling may well be a way to avoid the increasing flocks of tourists and journey into the heart of the Golden Land.

As Anne Cruickshanks, country manager for the Asia-based cycling tour company Grasshopper Adventures, told The Irrawaddy: "When you're on a bike, you get to use all five of your senses. … You're hearing things, smelling things and of course stopping and tasting things you're really not going to experience if you're sitting on a bus.

"It's a great way of seeing Myanmar," she said.

Cruickshanks recommends Karen and Mon states as regions with huge potential. Quiet roads, interesting terrain and accommodating weather make areas around Hpa-an and Moulmein, the two states' capital cities, great destinations. But for those looking for more of a challenge, "the most spectacular riding that is accessible is in the central Shan State. … It's tough and it's hilly, but it's brilliant," she told The Irrawaddy.

The sheer diversity of the country and terrain means that Burma offers something for people of all shapes, ages and inclinations—whether pleasure cyclists interested in a more relaxed day ride, committed long-distance tourers or those seeking the thrill of a downhill race.

Australian Jeff Parry has been running cycling tours in Burma since 1998 with his company Bike World Myanmar, and sees everyone from "13 to 70 years old" on his trips.

As well as the impressive nature, "In Myanmar, I think you've got a good opportunity to see people in their traditional way of life, which is probably disappearing in the likes of Thailand and Vietnam," he says.

The Irrawaddy joined Parry for one of his regular weekly rides, heading 25 kms out of Rangoon in the early hours of a Sunday morning to an area around the village of Nga Su Taung.

Leaving behind the bustle and fumes of downtown Rangoon, the attractions of cycling in Burma were immediately obvious.

Dusty red tracks ploughed their way through verdant green rice paddies and clusters of small villages, where children rushed out to wave and call "Mingalarbar" to the passing group. Tall plantations of rubber trees offered moments of shade and respite from the fierce sun. A few bikers stopped to take a refreshing dip in a passing lake, before jumping back in the saddle.

Heading out on two wheels offers a unique glimpse into Burma's rural life. Although a rare sight, Parry has seen both a wild leopard and elephants in the course of his cycling adventures.

His tours, however, are not for the faint-hearted. Negotiating a tricky downhill section ended in a spectacular crash for The Irrawaddy's reporter, who luckily managed to escape with nothing more serious than a few scratches and scrapes, a bent bicycle crank and a bruised ego. Both Parry and Cruickshanks agree that medical aspects should be taken seriously.

Cruickshanks trains all her tour guides in first aid, while Parry recommends that anyone considering coming to Burma for cycling takes out adequate health insurance and is fit enough to cope with the physical demands of the sport. Health facilities are few and far between, and not up to international standards in rural areas.

There are other unexpected challenges that budding cyclists are advised to consider. Government restrictions mean that foreigners are only able to stay in approved accommodation, which can limit routes to journeys between areas with registered lodging—or require that touring cyclists arrange alternative transport to get between remote locations.

Though it may be possible to stay with local families, "It's very imposing to go into a local family house if they don't have their government registration," says Cruickshanks. "They will always allow you to stay there, but they are running a risk of getting into trouble."

A Budding Burmese Scene

Contrary to expectations, there is also a vibrant local cycling scene in Burma, with enthusiasts taking to the streets and hills across the country.

Anyone willing to hit Rangoon's roads before daybreak will see a number of individual and group riders speeding past on bikes, getting precious hours in the saddle before traffic makes riding significantly less pleasurable.

Road cycling is popular, but apparently giving way to downhill and cross-country alternatives, related to the poor quality of many of Burma's roads and increasing levels of traffic.

Lance, a native of Mogoke in Mandalay Division, has been cycling in Burma for 25 years, starting out on a road bike and moving to mountain-biking 15 years ago.

Like everyone The Irrawaddy spoke with, Lance agreed emphatically that Burma is a great place for biking. He recounted, with a laugh, a story of cycling in Chin State, where only "15 minutes" of a non-stop, 11-hour ride were downhill and the rest was a grueling uphill trek. He acknowledged that this might not be everyone's cup of tea.

Mandalay-based mountain biking group the Mandalay Free Riders are inspiring interest in downhill racing among Burmese youth, and participated in last year's Southeast Asian Games.

The main difficulty facing local riders is the prohibitive cost of the sport. Decent mountain bikes start at around US$300, and for many on local salaries, this is simply out of reach.

In a country with such unparalleled diversity, natural beauty and clear potential for cycling, current reforms and a growing economy may help provide opportunities that not only encourage tourists to explore Burma "off the beaten track" and on two wheels, but allow more young Burmese to take part in the sport.

For more information, Bike World Myanmar can be contacted through their website http://www.cyclingmyanmar.com/. They run weekly Friday night rides around downtown Rangoon, and Sunday morning rides that leave at 6:30am from the Bike World Myanmar guesthouse, as well as dedicated cycling tours across Burma.

Grasshopper Adventures runs cycling tours throughout Asia, and specializes in seven- to 14-day tours through Burma, as well as day trips in Mandalay and Bagan. More information can be found on their website: http://grasshopperadventures.com/

The post Cycling: A Way Into Burma's Heart appeared first on The Irrawaddy Magazine.

Global Watchdog Says Indian Cars Fail Safety Test

Posted: 31 Jan 2014 06:48 PM PST

car safety, business, automobile, India

Tata Motor's Nano and Xenon models are on show at an Indian trade exhibition in Rangoon on Thursday. (Photo: Kyaw Hsu Mon / The Irrawaddy)

NEW DELHI — Several of India’s most popular car models, including the famously small Tata Nano, crumpled in independent crash tests in ways that would likely lead to fatality or serious injury, a global car safety watchdog said Friday.

The results are an indictment of the auto industry in India, which lacks adequate safety standards, said David Ward, head of the London car-safety watchdog Global NCAP, which performed the crash tests. India has some of the deadliest roads in the world.

Drivers should be “educated and protected by regulation, but that’s not happening in India,” said Ward.

India’s growing middle class, anxious to buy new cars, has helped fuel a booming auto industry while demanding little in terms of safety. Last year India produced 3.2 million cars, nearly twice the 1.7 million manufactured in the 2008 fiscal year. For the bulk of those sold within India, air bags and rear passenger seat belts were optional, and none was required to be tested for its ability to withstand a collision.

The lack of safety features, combined with reckless driving and shoddy roads, has helped give India a road death rate that is more than six times as high as that of the United States and nearly three times China’s rate, according to the World Health Organization’s 2013 road safety report on the number of deaths compared with the size of a country’s car fleet.

Seen another way, one in 10 people killed in a road accident worldwide is Indian.

Four of five small cars popular on the Indian market last year – including the Tata Nano, the best-selling Maruti Suzuki Alto 800 and the Hyundai i10 – failed independent crash tests recently performed by Global NCAP. The findings were not unlike what safety assessors found in Brazil and Mexico last year.

Automakers said the issue of car safety is complex, involving not just passenger safety, but also the safety of those outside the car. They said that means cars need to handle well, with good steering and brake systems while drivers must be educated about the rules of the road, and roads should be in good condition.

These are all challenges in India, where roads are often unpaved and pockmarked by ditches. City streets frequently crumble under heavy traffic, monsoon rains and hot sun. The minimal fines imposed for speeding mean limits are often flouted, with drivers peeling around corners and honking at cows, bullock carts, cyclists or anything else in their way.

Tim Leverton, head of Research and Development for Tata Motors, said Tata is looking again at the Nano’s structure for ways to improve its strength, after already adding power steering and improving the car’s dynamics.

In the Indian tests, only the Volkswagon Polo’s 2014 model had air bags, which were added after the earlier model failed the crash test. Volkswagon said the air bags, as well as anti-lock brakes, would become standard from Feb. 1 along with a 2.7 percent price increase to offset the costs.

“We are proud to be leading the cause of driver safety,” Arvind Saxena, the managing director of Volkswagen’s Indian passenger car business, said in a statement.

India’s biggest carmaker, Maruti Suzuki, did not respond to calls for comment.

The Polo and the Ford Figo were the only two cars to maintain their structures in a 64-kph (40-mph) collision, while the other three crumpled at a slower speed of 56 kph (35 mph) in ways that would likely lead to fatality or serious injury even with air bags.

All five cars chosen were standard, entry-level models, the sort a working class family might choose as their first car, rather than more expensive versions with additional features. About 80 percent of the cars sold in India have price tags of under $8,000.

The post Global Watchdog Says Indian Cars Fail Safety Test appeared first on The Irrawaddy Magazine.

The Irrawaddy Business Roundup (February 1, 2014)

Posted: 31 Jan 2014 06:46 PM PST

UK Govt Spotlights Forced Labor by Army in Teak Logging Racket

Concerns about the alleged use of forced labor by an Army-linked commercial teak logging operation in Shan State were voiced by a British government minister during his visit to Burma this week.

London Foreign Office Minister Hugo Swire told the British Parliament on January 27 he intended discussing the allegations while in Naypyidaw to meet senior Burmese government officials.

Britain's Parliament heard allegations from the Shan Human Rights Foundation that villagers in Murng Paeng Township are being used as forced labor by Burmese soldiers providing security for "military-linked logging operations above the planned Ta Sang Dam" on the Salween River.

The Shan group said a group of ex-army officers were involved in cutting down valuable teak forest surrounding the planned dam. The group has collected photographic evidence of teak logs stacked near Tachileik, on the Thai-Burmese border, ready for export to Thailand or China.

Swire also voiced concern about the possible involvement of a British company in the Ta Sang Dam development, which is currently at a standstill over financing and other issues.

The British firm Malcolm Dunstan Associates has been involved in the past with work at the dam site, where hundreds of Shan villagers have been forcibly moved.

"We make clear to every British company operating in Burma that their investment should be made responsibly and in line with international standards," Swire told the Parliament.

In Burma, Swire said the country had made much progress but the issue of human rights for all citizens was far from a reality.

Japan Urges Developers to Protect Rangoon's Tourist Attractions

Rangoon has been urged by the Japan International Cooperation Agency (JICA) to avoid damaging or demolishing the valuable architectural heritage in the rush to modernize the city.

The city's unique architecture, ranging from ancient temples to colonial buildings was a key attraction for the growing tourism industry and should be protected, the regional travel trade magazine TTR Weekly quoted JICA representative Shinji Yo Okusawoka saying.

JICA is involved in financing and advising on plans by the city government to develop a new transport infrastructure for Rangoon which is becoming clogged with rising traffic levels, like so many other Asia cities.

"When drawing up plans, we have to consider the situation of the natural environment and social surroundings. If the transport project does not cause damage to housing and the natural environment, people will accept it," Okusawoka said.

"[Rangoon] has the opportunity to develop a system almost from scratch and learn from mistakes other countries made," said TTR Weekly.

Burma's Planned Stock Exchange Will Have $32M Cash Float

The new stock exchange in Rangoon, due to begin trading in the last quarter of 2015, will have a start-up cash "float" of 32 billion kyat—equivalent to US$32.5 million.

That's the estimate of deputy finance minister Maung Maung Thein as the Burmese government aided by Japanese financial know-how prepare for the launch date, Eleven Media reported.

Almost half of the start-up capital will be provided by Japan's Daiwa Securities Group and the Tokyo Stock Exchange, partners with Burma's central bank, said the minister.

Burmese firms wishing to be listed on the exchange will have to comply with minimum business standards which will be detailed in exchange rules still being drafted.

"Only companies which meet the standards will be allowed registration for the exchange," said Maung Maung Thein.

Thai Firms Urged by Bangkok's Envoy to Invest in Burma quickly

Burma is ripe for investment by Thai businesses in the run up to the creation of a Southeast Asian single market at the end of 2015, the Bangkok government's ambassador in Rangoon said.

"Many other rival countries in the Association of Southeast Asian Nations and Asia, namely South Korea and Japan, are now also eager to invest in [Burma]," said the state Thai News Agency (TNA) quoting Ambassador Pisanu Suvanajata.

"Thailand should, therefore, have a clear investment direction toward [Burma] so that the country will not be slower than other rival countries in benefiting from investment opportunities," Pisanu said.

The Asean Economic Community (AEC) is scheduled to begin towards the end of 2015, after being twice postponed, with the objective of removing trade and labor movement barriers.

"Thailand is also capable in investment areas that [Burma] needs, including infrastructure, construction and other labour-intensive businesses, and service sectors [such as] health, beauty, insurance," TNA quoted Pisanu saying in an interview.

Thein Sein Aims to Raise Burma's GDP in 2014-15 to 9.1%

The Burmese government is aiming to raise the country's gross domestic product (GDP) to more than 9 percent for the 2014-15 financial year, President Thein Sein told a development conference in Naypyidaw.

The hoped-for target of 9.1 percent would be almost 2 percent higher than the 7.3 percent predicted for the current financial year, he was quoted by Eleven Media as saying.

GDP is the measure of a country's overall productiveness.

Naypyidaw is aiming to focus on rural development in the next financial year, via development aid, interest-free loans, foreign direct investment and technical assistance, Thein Sein told the second national development cooperation forum.

In addition, the government plans to give priority during its final phase before national elections to improving electricity, drinking water, agricultural development, tourism development and financial services.

The post The Irrawaddy Business Roundup (February 1, 2014) appeared first on The Irrawaddy Magazine.

Democratic Voice of Burma

Democratic Voice of Burma


BURMA BUSINESS WEEKLY

Posted: 31 Jan 2014 11:40 PM PST

 

Ups and downs

This week the Burmese currency sits at 981 kyat to the US dollar (buying rate) while selling at 988. Gold is marginally up this week to 662,000 kyat per tical. Fuel remains the same: petrol 820 kyat, diesel 950 kyat, and octane 920 kyat per litre. Rice too remains constant at 1,200- 1,300 kyat per basket for high-quality Pawsanhmwe rice and 850- 900 kyat for Emata rice.

 

Thein Sein vows to prioritise access to water, electricity

Speaking at the 2nd Myanmar Development Cooperation Forum on Monday, Burma's President Thein Sein promised to prioritise seven development programmes during the remainder of his term. Priorities over the coming 26 months, he said, are increasing access to electricity and water, agricultural growth, job creation, tourism development, financial development, and improvements to the trade and investment sectors.

"In the past, we have relied only on the State budget for development of our country. Now we can also count on other sources of finance, such as foreign aid, loans, and domestic and foreign investments," said Thein Sein.

Read more: http://www.dvb.no/news/thein-sein-vows-to-prioritise-access-to-water-electricity/36445

 

Telenor, Ooredoo finally awarded telecoms licenses

Ooredoo and Telenor finally received their Burmese mobile licences on Thursday at a ceremony in Naypyidaw. The companies were originally awarded the mobile licences in June, but the issuing of licenses was delayed while the government finalised telecommunications regulations. Ooredoo Group Chairman H.E. Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani said, "We look forward to working in partnership with the government of Myanmar to develop a world class network" while Telenor said the country "represents a strong business opportunity."

 

Thai insurer offers life to Burma

Muang Thai Life Assurance Plc has become the first Thai insurer to win a permit to set up a representative office in Burma, making it the fifth foreign insurance company in the country, Bangkok Post reported on Monday. For the first time in over 50 years, state-owned Myanma Insurance and the Insurance Business Supervisory Board have issued 12 insurers conditional approval to operate in Burma. Of the 12 approved companies, three plan to offer life insurance, which requires paid-up capital of 6 billion kyat (S$6 million). The rest planned to offer life and general insurance, which requires total capital of 46 billion kyat.

 

World Bank pledges $2bn development aid to Burma

The World Bank has pledged $2 billion in development aid to Burma for projects such as healthcare and energy supply. Bank president Jim Yong Kim announced the package during his first visit to the country, saying the aim of the aid was to tackle poverty.

“Expanding access to electricity in a country like Myanmar can help transform a society. Children will be able to study at night, shops will stay open, and health clinics will have lights and energy to power life-saving technology. Electricity helps brings an end to poverty.”

Almost 70 percent of Burma's population are not connected to the national grid. Kim said that improving power supplies is key to the country’s development.

Read more: https://www.dvb.no/news/world-bank-pledges-2bn-development-aid-to-burma-myanmar/36392

 

UNESCAP unveils IT jobs plan for Burma

A new presidential initiative to create jobs for young people and investment opportunities in Burma's IT sector was announced by the UN Economic and Social Commission for Asia and the Pacific (ESCAP) during a development forum in Naypyidaw on 28 Jan. The first phase of the Information Technology Capacity Development Programme, a collaboration between ESCAP, Infosys and the governments of India and Burma, will see 25 outstanding IT engineers and entrepreneurs from Burma undergoing 12 weeks of intensive training in India in software development.

 

SEZ Law should be 'driving force' for Burma's economy

Following the approval of the Special Economic Zone (SEZ) Law by Burma's Parliament on 23 Jan, Maung Aung, advisor to the Trade Minister, said the creation of SEZs should be regarded as a "driving force" for economic development in the country. The new advantages for investors should prioritise export-focused enterprises, said economic policy expert Aung Ko Ko. According to the SEZ Law, investors in Burma's SEZs, such as Kyaukphyu, Dawei or Thilawa, will receive a bouquet of income and tax incentives as per the new law.

 

Japan funds half of Burma's stock exchange 'float'

Rangoon's stock exchange – due to begin trading in 2015 – will have a start-up cash "float" of 32 billion kyat (US$32 million), thanks to Japan's Daiwa Securities Group and the Tokyo Stock Exchange, which will bankroll half the sum, Deputy Finance Minister Maung Maung was quoted saying last week by Eleven Media. The minister noted that firms wishing to be listed on the exchange will have to comply with minimum business standards which will be detailed in exchange rules still being drafted.

 

Burma aims to increase GDP to 9.1 percent

Burmese President Thein Sein told a development conference in Naypyidaw last week that his government aims to increase GDP to 9.1 percent in the 2014-15 financial year, almost 2 percent higher than the 7.3 percent predicted for this current year. He said that Naypyidaw will focus on rural development using development aid, interest-free loans, foreign direct investment and technical assistance.

 

No plan to ban offshore fishing

Acknowledging a decline of fishery resources, Deputy Livestock Breeding and Fisheries Minister Aung Myat Oo announced that offshore fishing will not be banned in the immediate future, as it would lead to a steep decline in exports and jobs, knocking some 60,000 workers off the industry's employment count. The Minister noted, however, that while it used to take only 15-20 days to fill a boat load, unregulated overfishing has stretched the time to 45-60 days to complete a load.

 

Japanese loan up for approval in Parliament

Burma's Finance Minister Win Shein submitted a proposal to Parliament on Tuesday to approve a US$600 million package of development assistance from the Japanese government. The Minister said the loan, granted with no interest for next 10 years and 0.01 interest rate for following 30 years, will be spent on development projects including: the first phase of upgrading the Rangoon-Mandalay railway; water distribution in Rangoon; and the second phase of construction on the Thilawa Special Economic Zone project.

Bitter aftertaste for sugarcane farmers in Naypyidaw

Posted: 31 Jan 2014 11:07 PM PST

Sugarcane farmers in Naypyidaw's Lewe Township say they face substantial losses in a local venture with a military-owned sugar refinery that is losing business and cancelling orders with them.

The farmers say that sugar refinery firm Taung Sin Aye, a subsidiary of Myanmar Economic Corporation, has been processing about 33 percent less sugarcane than usual due to outdated machinery, and has subsequently cancelled orders for sugarcane from the local farmers.

"The refinery previously ordered 1,200 tons from us, but now they are cancelling orders," said a local sugarcane farmer who added that not only are sugarcane farmers affected but also truck drivers.

"Now there is a long line of trucks queuing up outside the factory," the farmer said. "Meanwhile our sugarcane is drying up under the sun."

A delivery truck driver told DVB that not only was he not making any money because of a lack of orders, but he still had to pay the truck rental fees and buy fuel.

"I have been waiting outside the refinery since this morning," he said, "but some drivers have been queuing up all night."

It cost farmers around 450,000 to 500,000 kyat (US$450- $500) to cultivate an acre of sugarcane with an approximate yield of 30 tons. In addition, farmers must pay commission to landowners.

There are around 5,000 sugarcane farmers working in the venture with the Taung Sin Aye refinery in Lewe, which was not available for comment on the matter.

Myanmar Economic Corporation is one of two major conglomerates and holding companies that provides the Burmese military with access to materials such as rubber and cement. Its dealings are notoriously shrouded in secrecy and the firm remains on the US blacklist of sanctioned companies.

Burma’s emerging women leaders

Posted: 31 Jan 2014 09:08 PM PST

Kay Thi Win was forced to drop out of high school when her father died in order to help support her mother and siblings.

"I told my mother that I got a job in a factory on the Thai-Burmese border and I was going to work there," she said. "I ended up working as a sex worker."

Today Kay Thi Win is the founder of AIDS Myanmar Association, an organisation run by sex workers which offers health education, HIV prevention and referral services, and STI counseling and treatment. She is also chairperson of the Asia Pacific Network of Sex Workers.

Kay Thi Win is one of seven women to be featured in a new campaign by the development foundation, We Women. Entitled the "Emerging Women of Burma", the campaign highlights work currently being undertaken by newly prominent female leaders in the country.

A documentary, due to be released in March, will focus on the seven women who have overcome significant challenges in their lives to go on to pioneer work on social issues within their communities.

San, project coordinator for We Women, said the campaign aimed to highlight women whose work has not been widely recognised in Burma or internationally.

"In Burma, most of the publicity goes to the Nobel Prize winner Daw Aung San Suu Kyi," said San, "But there are other women leaders whose work has had a hugely positive impact upon their communities."

San said she hoped the campaign would inspire young girls to become successful.

"The younger girls or teenage girls – they are still women – and they can make a change. And [they see] women are powerful so we want to inspire them."

The women in the film come from various ethnicities and backgrounds; many have gone through unimaginable difficulties in order to provide for their families.

"We want to bring those women's work to international attention as well as to people inside Burma," said San.

As Burma goes through its political and economic transition there have been many voices urging women not to be left out. A Women's Forum held in Rangoon in December featured many high-profile speakers who examined economic and social issues in Burma from a woman's perspective.

In January, the Burmese military appointed two female officers for the first time ever as representatives in parliament.

But women continue to face barriers to employment, education and healthcare in the country.

The "Emerging Women of Burma" documentary will be released on 14 March.

You can get more information about of the campaign at: http://wewomenfoundation.org