Saturday, February 6, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine


The Irrawaddy Business Roundup (Feb. 6, 2016)

Posted: 05 Feb 2016 05:44 PM PST

 A woman shows a sim card from Qatar's Ooredoo after buying it from a phone shop in Rangoon, July 31, 2014. (Photo: Reuters)

A woman shows a sim card from Qatar’s Ooredoo after buying it from a phone shop in Rangoon, July 31, 2014. (Photo: Reuters)

Ooredoo Chief Says Burma Commitment 'Pretty Much Intact'

Having invested a massive $1.7 billion in Burma since 2014, Qatari telecommunications firm Ooredoo has pledged to double down on its investment, despite lagging behind its rivals in the battle for subscribers, Reuters reports.

The newswire this week published an interview with Ooredoo Myanmar CEO Rene Meza, who took the helm at the company last year.

According to figures published on its website, Ooredoo had 4.8 million subscribers in Burma by September last year. Reuters said market leader MPT, the part state-owned former monopoly holder, now claims 18 million subscribers. Telenor of Norway, which entered the market just after Ooredoo, has raced to 12 million. The figures for Telenor and MPT may be more up to date than Ooredoo's, which are the most recent the firm has published.

The interview attributed Ooredoo's slow progress to an initial focus on higher-value data services, with Meza declaring that the new approach would be "mass market," meaning a lowering of data tariffs and more focus on distribution.

"The initial approach when we launched services was not a mass market approach,” Meza told Reuters. “As you can imagine, it is a fast moving market. One year of delay, in terms of the right commercial execution, basically means the gap that you see in the market today.”

The report made no mention of whether a boycott against Ooredoo called by Burma's Buddhist monk-led nationalist movement had an impact on the company, which comes from Muslim-majority Qatar.

Meza dismissed the notion of an Ooredoo pullout, adding that another $350 million would be invested in 2016.

"We don’t see any slowdown in investment, any slowdown in executing our strategic initial plans for Myanmar," he was quoted saying. "Our commitment to continue investing remains pretty much intact."

IFC Could Fund Rangoon Container Port

The World Bank's International Finance Corporation (IFC) is considering loaning a total of $200 million to a company operating a container port in Rangoon, according to a filing on the organization's website.

IFC's summary of the proposal said it would involve funding capital investment in the port and refinancing bridge loans already taken by MyanmaAnnwa Swan A Shin Group, a local family-owned company that operates the Myanmar Industrial Port on the Rangoon River.

"The proposed IFC investment consists of a US$40 million IFC A Loan, a US$40 million convertible C loan and a US$120 million in parallel loans," it said.

A justification of the potential investment said the funding would help to expand the port, which already handles 278,000 containers annually and holds a 40 percent market share, according to IFC.

"The port will help to unlock the potential of the international trade, and thus will directly and indirectly support job creation and economic development in the region," it said, adding that government revenues would also be increased by rising trade.

"The Project will be among IFC’s first investment[s] in the transport sector in Myanmar. It will have a demonstration effect and will encourage private sector investors to develop more infrastructure projects in the country."

The filing named the owners of MyanmaAnnwa Swan A Shin Group (MAS) as Captain Ko Ko Htoo and his wife and son, Sandar Aung and Min Thiha, respectively. The IFC described Captain KoKoHtoo as "a Myanmar national with over 15 years of international shipping experience."

The Myanmar Industrial Port's website states that the privately owned port has been in operation since 2003, when it "was founded with the guidance and assistance of the Head of State," which at the time was the now retired junta leader Sen-Gen Than Shwe.

According to a state media report from the time, the port was officially opened by Khin Nyunt, then Secretary-1 of the State Peace and Development Council, in a ceremony that involved Captain Ko Ko Htoo presenting "gifts" to the junta's former spy chief.

"The ministry had permitted private entrepreneurs to undertake port services in cooperation with local and foreign investors, as long as the services are in accord with the Myanmar Investment Law," the port's website says. "MIP was built with MAS as the sole investor, with MAS funding and overseeing the port construction and operations 100%."

Hong Kong Garment Investor Talks Political Uncertainty

The CEO of Hong Kong textile conglomerate Lawsgroup has said the Burmese business environment remains uncertain due to ongoing political machinations.

In an interview with the Financial Times, published this week, CEO Bosco Law said the company—which also operates in Bangladesh, Vietnam and mainland China—had set up a factory close to Rangoon last year.

Lawsgroup employs more than 2,000 workers in a t-shirt factory north of the commercial capital, the report said.

The CEO, whose grandfather founded Lawsgroup in Hong Kong, said local politics and inexperienced government officials made doing business difficult.

"Opening a new factory is always tough," Law was quoted saying. "Everything is new in Myanmar. Even if you talk to the [government's] commerce department, they don't really know the policy…everything is a guess, everything is grey."

Although the National League for Democracy is now the largest party in parliament, it is still unclear who will be the next president.

"Who knows what will happen? But still, if we have a 70 per cent chance [of success] we will go for it," Law was quoted saying.

Outgoing Electric Power Minister Meets Chinese on Hydro Projects

The outgoing Burmese government, which runs the country only until the end of March, met with a Chinese hydropower industry representative this week, and reportedly pledged to prioritize Chinese-backed dam projects.

The state-run Myanmar International Television (MITV) reported the meeting Tuesday between Minister for Electric Power Khin Maung Soe and Liu Qi, the chairman of the China-Myanmar Electric Power Cooperation Commission. Deputy Minister for Electric Power Maw Thar Htwe was also present, it said.

The commission was established following an agreement signed by Burmese President Thein Sein and Chinese Premier Li Keqiang in November 2014. MITV said the meeting this week was the commission's third.

"China has invested in Myanmar's electric power sector especially in hydropower generation," the report said. "18 hydropower projects have been agreed to be implemented as priority at the second commission meeting."

The report did not go into the recent history of Chinese-backed hydropower in Burma.

One of the first acts of the new Thein Sein administration in 2011 was to suspend the Chinese-backed Myitsone hydropower project, with the president declaring that work on the dam would not move ahead under his watch.

Since then, the China Power Investment Corporation, the firm that was behind the $3.6 billion plan to dam the upper reaches of the Irrawaddy River, has been lobbying to get the project restarted. However, it is unclear what approach an NLD-led government will take to an inherited—and highly unpopular—project like Myitsone.

Singapore Firm Announces Work on Rangoon Shopping Center

Singapore-based Solibuild Construction Group has won $9.4 million worth of work in Burma in connection with a shopping center refit.

The company said it had been awarded a design and build contract "for the addition and alteration works of St John Shopping Center" in Rangoon.

The Jan. 26 statement gave little details about the shopping center or its location, and did not name the local partners with whom Solibuild will work.

"The Project is awarded by a joint venture between 2 reputable companies in Myanmar, which have activities in retail and real estate development," it said. "The Project is expected to commence in the first quarter of 2016 and is to be completed within 8.5 months from the commencement."

The post The Irrawaddy Business Roundup (Feb. 6, 2016) appeared first on The Irrawaddy.

Dateline Irrawaddy: ‘When NLD Lawmakers Deal with Ethnic Issues, They Need to Use Their Heart and Their Brain’

Posted: 05 Feb 2016 05:36 PM PST

The panel comes to you this week from Naypyidaw, where they discuss the coming parliamentary term and the NLD-led government to come.

The panel comes to you this week from Naypyidaw, where they discuss the
coming parliamentary term and the NLD-led government to come.

Kyaw Zwa Moe: Welcome to Dateline Irrawaddy! We are at the Upper House building. We'll discuss how the Parliament has been progressing since its commencement on Monday, the differences between the old and new parliaments and how the new Parliament will handle Burma's important political and ethnic issues. Ma Htoot May, an Upper House lawmaker from the Arakan National Party [ANP], and Irrawaddy Burmese editor Ko Thalun Zaung Htet will join me for the discussion. I'm Irrawaddy English editor Kyaw Zwa Moe.

Ma Htoot May, you were elected to the Upper House for the Arakan National Party [ANP]. The Upper House session convenes on Wednesday. First of all, what do you think of the Parliament as a young lawmaker?

Htoot May: I don't find anything interesting in terms of essence, by which I mean that I have no idea how Parliament made it through those five years. But according to the cause of building "the Union with national people" for which we have come to Parliament, I will try to bring about change while I am serving. We can learn lots of lessons from the past. But for the future, we have to work on the interests of the people. Drawing a comparison between this building [Parliament] and the livelihood of [the general public], it's clear that power is very centralized. This building is proof that government expenditure is centralized. The [previous government's] expenditure on education and health was the lowest. There was a huge gap.

KZM: The previous Parliament was dominated by the Union Solidarity and Development Party [USDP]. And the military is still guaranteed 25 percent of parliamentary seats. But this Parliament is dominated by the NLD. The color has changed to dusky orange [from green]. Ma Htoot May, you were elected to represent an ethnic party. Do you see differences or similarities between your party and the NLD?

HM: In a democracy, there is no absolute similarity. There are differences. But our campaign slogan was to establish a federal Union with self-determination through a mandate for state governments. The NLD won election in a landslide and also won in many ethnic regions. It is above suspicion [that NLD secured a thumping victory] because the NLD has struggled for democracy for ages.

But I have my concerns. Lawmakers who won in ethnic regions are from the NLD, and because they are not from ethnic parties, they will more or less have to respect the policies of their party. When NLD lawmakers deal with ethnic issues, they need to use their heart and brain. As they try to respect their party's policies, they should not forget ethnic aspirations. It would be better if they could work together with us on any law that leads to federalism for the interests of people.

KZM: The NLD has selected the speaker and deputy speaker of the Lower House, and the deputy speaker is an ethnic man. The speaker and deputy speaker of the Upper House nominated by the NLD are ethnic persons. It indicates that the party gives consideration to ethnic groups. What is your impression of U Mann Win Khaing Than and ANP leader U Aye Tha Aung?

Thalun Zaung Htet: Some ethnic voices seem to be satisfied. Yesterday, U T Khun Myat, who is ethnic Kachin, was given the deputy speaker position, though he is from the USDP. U Mann Win Khaing Than, who is ethnic Karen and from the NLD, has been earmarked for speaker of the Upper House and U Aye Tha Aung, from the ANP, for deputy speaker.

KZM: U Aye Tha Aung has considerable experience in politics.

TZH: I heard ethnic parties such as the Shan Nationalities League for Democracy [SNLD] say that they are satisfied with the NLD giving positions to ethnic lawmakers. But at the same time, ethnic parties are saying that they want to play a greater role in administration- and Union -level positions, as well as greater representation among division and state chief minister positions, which are to be appointed by the NLD. For example, the ANP has demanded that the Arakan State chief minister position be given to the ANP, which won the largest number of seats in the state parliament. At present, ethnic parties have a certain share in the legislature. If they are also given positions in Union-level agencies, the executive branch will become more interesting.

KZM: Ethnic person make up three of the four speaker and deputy speaker positions. But it will be more important for them to get positions in the administration. Ma Htoot May, you have continuously studied the 2008 Constitution and will have to take the oath of office according to that Constitution tomorrow. The Constitution was criticized as being undemocratic. What do you want to say about the provisions in the Constitution regarding federalism and ethnic issues?

HM: Even ordinary people who have read the 2008 Constitution know that it can't lead Burma to development. The [Parliament] should be democratically elected, not be appointed. How we can convince [the military] that appointment is unacceptable is key to solving this problem.

Regarding the oath, it is about vowing to abide by the existing laws. But it does not mean we won't change them. It is common across the world for a law to be amended if it is against the interests of the people. So we'll try to amend or rewrite it. There are laws in Burma that are not compatible with modern times and that are weak, for example, the Constitution that reserves 25 percent of seats for the military, therefore making it undemocratic.

KZM: Changing the Constitution largely depends on the military representatives sitting in Parliament. They are there to make sure the Constitution is not changed. How do you feel about sitting together with them in Parliament? Do you think they are not needed? How do you anticipate negotiating with them?

HM: I have no feelings about their involvement in Parliament. But there is one thing I care about—their role. The duty they have to carry out is gigantic. If they were elected by the people, things would be democratic, and if they entered Parliament to enact legislation, we would welcome them. In every country, the military has to carry out its huge duty of national defense, and the duty of legislatures is to enact legislation. I don't see them sitting in Parliament for fear that a Constitution or a law might be annulled [in their absence]. They are sitting there because of the 2008 Constitution.

But if they [the military] do want to do something good for the people, they have the chance. For example, if an amendment needs more than 75 percent of affirmative votes to pass, the good, brave military men who are also trying to introduce change to our country can take part. We will be a better democracy if there are more lawmakers who really want us to be this.

KZM: Not only the military representatives sitting in Parliament, but also the military leadership play a key part in this country's politics. Frankly, for Daw Aung San Suu Kyi to become president, she will need the approval of the military leadership. Though her party has won the election, she is barred from the presidency by Article 59(f). She can be president only if the military agrees. Ko Thalun, what have you heard about this in Naypyidaw? There have been so many wild guesses.

TZH: We haven't gotten any on-the-record information from NLD lawmakers. They are not allowed [according to Suu Kyi's orders] to speak to the media. But I've heard from them off the record that they are holding talks with the military for Daw Aung San Suu Kyi to become the president, and it sounds like the NLD will have to give lots of positions in the government, including Union-level positions, to the military in return for a change to the Constitution.

KZM: So the presidency is still very much up in the air. Again, regarding NLD lawmakers, people, especially international scholars, are saying that they do not have experience in administration and running the country.  Ma Htoot May, you are a young, elected lawmaker. How much do you believe you will be able to serve your state and your people? What capacity do you think will be needed?

HM: Indeed, we can't buy experience. But it has only been five years since Burma started moving toward democracy. Those who served in Parliament for the past five years also did not have experience at the start. Everyone faces difficulties at the beginning. This is true in any part of the world. But at the same time, late-comers have an advantage, in that we can learn the pros and cons of a law or of technology from developed countries. We can learn their experiences.

KZM: To profit from the folly of others?

HM: Yes. I view Naypyidaw as a university. I have things to learn, and we'll be able to serve the people best by gaining experience. I vow to do the best I can.

KZM: Parliament will be in full swing in the next two, three weeks. Are you prepared to submit any proposals yet?

HM: There are four standing committees in the Union Parliament [e.g., the bill committee, public accounts committee, etc.]. I will submit proposals depending on the actions of these committees. For now, I have not yet prepared a specific proposal. But there is one thing. I've come here to amend the Constitution. So I will restudy which provisions go against democratic norms and which should be amended in the next five years. Again, in addition to power-sharing, resource-sharing plays a big part [in development]. Most of the infrastructure, including in Naypyidaw, is built with the [government] budget. I'm interested in the budget for the next five years. I will do my best to manage budgets according to resource-sharing for the people.

KZM: Ma Htoot May, Ko Thalun Zaung Htet, thank you for your contributions. We'll see what laws Parliament will pass for the interests of the country in the coming weeks. Thanks, all.

The post Dateline Irrawaddy: 'When NLD Lawmakers Deal with Ethnic Issues, They Need to Use Their Heart and Their Brain' appeared first on The Irrawaddy.

A Cat Safe Haven on the Outskirts of Rangoon

Posted: 05 Feb 2016 05:26 PM PST

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THANLYIN TOWNSHIP, Rangoon Division — Just 20 miles from the commercial capital Rangoon lies a safe haven for stray and sick cats, in Thanlyin Township's Kunchangon village.

The shelter has taken in more than 200 cats, many abandoned by their owners at pagodas in and around Rangoon, said Aye Aye Maw, who runs the shelter.

"I feel very sorry for them [the cats]. I have pity for them. That's why I've saved them. People tend to abandon them if they get sick or something happens to them," Aye Aye Maw said.

"Some cats are bitten by dogs. But there are also cruel people who sell cats to liquor shops as appetizer [to go along with their liquor]. This motivated me to talk with a sister in Japan about this and set up the shelter."

The shelter was established last October, at first welcoming some 50 abandoned cats from Sule, Kyaik Waing and other pagodas across Rangoon. Over the next four months, the shelter has managed to save 150 more cats.

"Before I started running this shelter, I would feed cats and dogs wandering around pagodas. There would sometimes be arguments with people who don't love animals. But I feel sad at the sight of cats in trouble. Because it wasn't convenient for me to bring them home, I decided to open this shelter," Aye Aye Maw explained.

"Some people have called me to come and get stray cats, others have brought them to our shelter."

Apart from more than 230 cats, the shelter is also home to four stray dogs.

"I also feel sorry for dogs. So I keep them. Some puppies need to be fed with a particular milk powder like 'Dumex' because they might suffer stomach problems if they're fed generic milk."

Aye Aye Maw lives in Rangoon, arriving at the shelter in Thanlyin by 7 am each morning to feed the cats.

"We humans feel hungry as soon as we get up, don't we? So cats will feel hungry, too. I feed them three times a day. But they're lucky, because once their feed runs out, donors always come," Aye Aye Maw said, laughing.

She feeds them again at noon and 5 pm, before she heads home for the day. She has hired a watchman to take care of the cats at night and every Tuesday, doctors from volunteer medical groups give the cats a check-up.

Aye Aye Maw keeps the sick cats in separate cages, and she treats the injured ones herself.

Previously in Burma, a compassionate soul would struggle to find a shelter for stray dogs and cats in need. In recent years, however, the number of shelters, as well as volunteer groups and doctors to support them, has been on the rise in Rangoon and elsewhere in the country.

This trend could continue, or reverse, but Aye Aye Maw vows that regardless, she's in it for the long haul.

"I'll save and take care of these animals till my last breath. That's my goal," Aye Aye Maw said.

The post A Cat Safe Haven on the Outskirts of Rangoon appeared first on The Irrawaddy.