Sunday, June 8, 2014

Democratic Voice of Burma

Democratic Voice of Burma


US aims to boost investment in Burma

Posted: 08 Jun 2014 01:05 AM PDT

Spending two days in Burma as a part of a commercial diplomacy tour in Southeast Asia, US Commerce Secretary Penny Pritzker inaugurated a commercial service office at the US embassy in Rangoon on Friday.

Commercial service offices, as explained to DVB by Andrew Leahy of the US embassy, serve as "an advocate and liaison for US businesses attempting to invest in a particular country," and work "directly with US businesses interested in learning more about a country or navigating the country's economic environment."

Pritzker's regional tour was touted by the US Department of Commerce as one intended to elaborate on the economic dimension of President Obama's pivot to Asia, with time spent in Burma intended to encourage the "building of soft and hard infrastructure necessary to support the growth of emerging partners."

Her three-legged tour also included the Philippines and Vietnam.

Burma's emergence as a US trade partner is distinguished most clearly by a jump in US exports to the once pariah state, which, according to the US embassy, ran from US$9.8 million in 2010 to $145 million in 2013. On top of this, as of 30 April 2014, US companies have plans to invest $243.6 million in the Burmese economy.

While that figure of American foreign direct investment (FDI) in Burma is dwarfed in comparison to the latest available US FDI figures for the Philippines, $4.6 billion, and Vietnam, $1.2 billion, the reaction by US firms to the 2012 removal of the majority of US economic sanctions has been swift.

On Thursday, Pritzker met Burmese President Thein Sein in Naypyidaw, as well as Vice President Nyan Tun and Shwe Mann, speaker of the Lower House.

To each she reportedly stressed the need for the Burmese government to "build on the progress that has been made by implementing measures that increase inclusive economic development, promote government transparency and accountability, and safeguard labour rights and human rights."

That progress was evaluated last month and resulted in President Obama renewing the US classification of the situation in Burma as a "National Emergency." With that motion, the limited economic sanctions that bind US businesses investing in Burma were renewed. Those sanctions, according to US Ambassador to Burma Derek Mitchell, primarily affect "individuals and entities that materially benefited from their close ties to the former regime and who are still impeding reform in this country, the so-called 'specially designated nationals'."

One such blacklisted entity, military-owned Union of Myanmar Economic Holdings (UMEH), is set to neighbour American company Ball Corporation at Thilawa Special Economic Zone (SEZ), currently under construction 20 kilometers south of Rangoon.

Ball Corporation will benefit from minimal government red tape and relaxed labour laws that characterise the SEZ, as will UMEH, a company already exempt from commercial and profit taxes. UMEH will continue to develop infrastructure plots at the zone, which includes heavy manufacturing and port facilities.

On Friday, representatives from Ball Company, as well as APR energy, who are constructing a large-scale thermal power plant in Burma, joined Priztler as she affirmed, "When our businesses make investments, they bring with them the highest standards, including a commitment to corporate and social responsibility."

That comment came a day after Washington-based lobby group US Campaign for Burma (USCB) released what it called a "report card", grading the six US companies that have each invested over $500,000 in Burma. Those companies were adjudged on levels of transparency, procedural behaviour, risk mitigation and social responsibility. USCB was only able to classify one of the companies, Coca-Cola, as a "responsible" investor, whereas two firms were designated as "questionable" and three as "irresponsible".

One such "irresponsible" US company, Capital Group Companies Inc, was singled out for their relationship with Burmese concern Yoma Strategic Holdings. USCB links Yoma to "human rights abuses, including environmental destruction, forced displacement, land confiscation, political detentions, and labor abuses." USCB also noted that Yoma was reviewed by the US Treasury for potential inclusion on their blacklist, for links to the previous military regime.

Yet Yoma have never featured on the list, and their CEO, Serge Pun is frequently referred to in the international media as "Mr Clean". That title comes despite his flagship enterprise Yoma Bank not appearing on the list of 100 top Burmese corporate taxpayers list for 2011-12 nor the top 500 list for 2012-13.

That Serge Pun has been able to run a multitude of successful businesses in Burma under successive military regimes and the current quasi-civilian government has raised the suspicions of lobby groups such as USCB. Last month, USCB called for the International Finance Corporation to pull out of a development deal with Yoma.

The US embassy included Yoma in 2008 as a player in the Burmese government "system of economic patronage" which insures that "certain companies, often owned by regime cronies, receive key contracts and profitable business opportunities in exchange for their support for the regime."

Yet Yoma, nor any company that Pun has been involved in, have ever been hit with sanctions, leaving Pun with a reputation as a professional and esteemed business leader in a national business environment which clearly fosters corruption.

Last week, Andrew Rickards, CEO of Yoma Strategic Holdings, told DVB that USCB's allegations are “without substance” and that Yoma, “rejects the validity of these [USCB] calls."

"If anything," Rickards asserted, "Mr Pun should be congratulated.”

While pessimistic about the current performance of US private sector investment in Burma, USCB maintains that "Responsible US investment has the potential to further the US policy goal to support 'the establishment of a peaceful, prosperous, and democratic state that respects human rights and the rule of law.'"

The rights watchdog will hope to be able to grade garment manufacturers Gap Inc with a pass mark on their next report. The fashion brand has recently announced the intention to open two factories in Burma and in doing so has indicated a commitment to corporate social responsibility.

Burma rejects Bangladeshi demands at border talks

Posted: 07 Jun 2014 11:03 PM PDT

Burma and Bangladesh will reschedule talks on the current border crisis after the Burmese delegation rejected proposals at a flag meeting in Maungdaw last week.

Bangladeshi media quoted Maj-Gen Aziz Ahmed, the director-general of Border Guard Bangladesh (BGB), saying that no clear decision was made at the border flag meeting and so talks will be scheduled for Naypyidaw in the near future.

Aziz said that Burma refused a demand to withdraw its troops from positions close to the common border, and also rejected a Bangladeshi proposal to conduct joint patrols along the border.

The flag meeting was held after a recent spate of hostilities between the border guard forces of both countries which resulted in one Bangladeshi corporal shot and killed on 28 May.

During the flag meeting, Burma's delegation handed back the gun and equipment of the dead Bangladeshi soldier. The body of Corp. Nayek Mizanur Rahman was handed over on 2 June.

Both countries had previously agreed not to position troops within five kilometres of the land border. Bangladesh accuses Burmese border guard units of breaking that agreement. Burma, for its part, maintains that Rohingya militants are active in the area surrounding boundary posts 50 to 52 and that they must protect their sovereignty.

The 23-member Bangladeshi delegation was led by Cox’s Bazar Sector Commander Khandakar Farid Hasan while the Burmese team was headed by border guard police commander Brig-Gen Tin Ko Ko and the Maungdaw immigration department director.

Tin Ko Ko is reported saying at the meeting that Burmese security forces shot at Corp. Mizanur as they believed him to be a member of the Rohingya Solidarity Organization (RSO). He noted that the insurgents frequently wear uniforms similar to the BGB.

The Bangladeshi commander reportedly rejected the allegation that the RSO maintains bases on Bangladeshi soil.

Border demarcations leave Shan farmers on Chinese soil

Posted: 07 Jun 2014 09:53 PM PDT

Farmers in villages around Namkham in northern Shan State say they plan to send a letter of petition to Burma's President Thein Sein to voice their concern that new border demarcations will leave them on the Chinese side.

Temporary border posts have been erected about half a mile from the farming hamlets of Sae Khon, Kongthar and Ban Nong in Namhkam Township, following talks between Burmese and Chinese officials last week.

Burma appears willing to cede the land – some 200 acres south of the Shweli River – to China. However the farmers say they want to remain in Burma's Shan State, having worked on these lands for several generations, according to Sai Sai Wang, the local chairman of the Shan Nationalities Democratic Party (also known as the White Tiger Party).

The farmers plan to send a letter of petition to the president, insisting they want Burma to protect these lands which they inherited, he said.

"Not only the White Tiger Party, but also the Tiger Head party are joining together to help the villagers," Sai Sai Wang told DVB on Friday. "These lands belong to Shan State in Burma and we reject any agreement that marks them as part of China.

He said the farmers' petition will be sent not only to Thein Sein, but to the chief minister of Shan State, the respective district and township administrators, and other related parties.

The White Tiger Party representative said that the Burmese authorities had not informed the local people what was happening, but had only issued warnings to farmers not to try to pull out or change the border markers.

Villagers allegedly tore out and destroyed temporary border markers that were installed on 27- 31 May.

MP Sai Pho Aung from nearby Muse constituency said he is collecting information and will raise the issue in parliament.

Burmese state media on 5 June said that the government is not reassessing the border but implementing military demarcations agreed in 1960 and 1995. The report said that authorities will educate and advise the farmers who are growing crops in the areas between Namhkam and the Shweli River marked for transfer.

Burmese beauty queen arrives home after victory in Seoul

Posted: 07 Jun 2014 08:05 PM PDT

May Myat Noe arrived home in Burma on Thursday night following after her victory in the Miss Asia Pacific competition in South Korea last week.

Despite the late hour, the 18-year-old Burmese beauty was mobbed at Rangoon International Airport by fans, media, family members, friends, and representatives of the fashion and modeling businesses.

May Myat Noe became the first Burmese to win an international beauty pageant at this level; others have won contests by Internet voting, but none have won in a competition involving international judges.

In an interview with DVB, May Myat Noe said she will continue her education and volunteer as a social worker while at the same time pursuing her career as a model or actress.

 

Some excerpts of May Myat Noe's interview with DVB from Seoul:

Q: How do you feel about winning the title?

A: Very proud and happy. I'm proud that I've achieved something for my country.

Q: How did you prepare for the contest?

A: I've had several mentors who supported me – it was also thanks to their efforts, as well as my own, that I won the title.

Q: You had to compete against contestants from 40 other countries. How confident were you about winning?

A: I am aware that I am not completely perfect, but I gave it 100 percent throughout the competition. In the end, I believe that I deserved to win.

Q: What are your plans for the future after winning the Miss Asia Pacific World Super Talent 2014 pageant?

A: I have some ideas, but I will have to wait until I get back to Burma.

Q: We learnt that you were also awarded membership by the Korean Film Actors Association?

A: Yes. I just got it now. I will take a photo of the award and post it on Facebook.

Q: Are you planning to do any charity or philanthropy work?

A: Yes. I am planning to help out with a charity education programme.

Q: Any message for your fans in Burma?

A: Yes. I thank you all for your support which empowered me with the confidence to win this contest.

 

National News

National News


Cooperatives loan program criticised by hluttaw members

Posted: 05 Jun 2014 11:28 PM PDT

The Ministry of Cooperatives has rejected accusations that members of parties other than the Union Solidarity and Development Party are being refused microfinance loans.

Police nab men for faking accidents

Posted: 05 Jun 2014 10:47 PM PDT

Police on June 3 arrested five suspects they say faked car accidents in order to solicit money from unsuspecting drivers.