Saturday, February 13, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine


Dateline Irrawaddy: ‘It’s Fair to Say That President U Thein Sein Is Burma’s Reform Icon’

Posted: 12 Feb 2016 09:39 PM PST

 The Irrawaddy speaks with Minister of Information Ye Htut about President Thein Sein's five-year tenure and the media's role in the country. (Photo: Myo Min Soe / The Irrawaddy)

The Irrawaddy speaks with Minister of Information Ye Htut about President Thein Sein's five-year tenure and the media's role in the country. (Photo: Myo Min Soe / The Irrawaddy)

Kyaw Zwa Moe: Welcome to Dateline Irrawaddy. This week I will speak with the sole spokesperson for President U Thein Sein as well as Minister of Information U Ye Htut. We will talk about the successes and failures of President U Thein Sein over the past five years, and if the state-run propaganda newspapers of the Ministry of Information will be needed once the democratic government has fully come to power. We will also talk about [Ye Htut's] plans for after he retires. I'm Irrawaddy English Editor Kyaw Zwa Moe.

The five-year term of incumbent President U Thein Sein is ending soon. What are his top three achievements out of all of his political and economic reforms?

Ye Htut: The most important achievement is that the government brought those who were outside political life and not involved in the 2010 election, including Daw Aung San Suu Kyi, into the political process. The second achievement is that the government initiated a process of ceasefire negotiations that could lead to political dialogue for the very first time in our country. And the third is that the government reintegrated Burma, a former pariah state, into the international community. If Daw Aung San Suu Kyi is said to be Burma's democracy icon, it's fair to say that President U Thein Sein is Burma's reform icon or the icon of a Burma Spring.

KZM: One or two years after President U Thein Sein took office in 2011, he was recognized by both Burmese people and by the international community as a real reformist. But after 2012, some criticized that the reform process has slowed and even stalled. Why did this happen?

YH: It is because of high expectations. When we initially assumed power, people did not have trust in us. They had low expectations. After we saw a degree of success [with reforms], people's expectations grew. The president and our cabinet, however, have very limited capacity. First, we do not have much experience and expertise—one of our weakest points. Second, the president's mandate stated in the Constitution is limited. Under such circumstances, the government could not meet the expectations of the people. Still, looking back, it is fair to say that we have come a long way. More importantly, along the way, we were able to avoid bloodshed and transition to a relatively stable stage with few problems.

KZM: We found that U Thein Sein, as the top leader of the country, could have done more regarding constitutional reform and other important issues. But he didn't. Why?

YH: He stated both in his first and final speech that the first five years is really just the first stage of reform, and if the 2015 election could be held peacefully and freely, [the country] would be able to move on to the next stage. It is his strategic goal. You said the president could have done more. Yes, there were many things he could have done along the way to gain political popularity. But then—

KZM: For example, [the suspension of] the Myitsone Dam helped him gain popularity.

YH: Yes, there are also many other things. But when the chance to gain popularity by pleasing the crowd was at odds with the stability of the reform process, the president sacrificed the opportunity to grow in popularity for more attention to his strategic goal—to get through 2015 in a stable way. Rather than focusing on getting re-elected, he focused on holding a peaceful election in 2015 and ensuring that whoever won the election could take power peacefully. Therefore, he had to leave certain things untouched. And unfortunately, that has drawn criticism.

KZM: We recognize the international community has given credit to the reforms initiated by the president. Burmese expats have also come back home. But the results of the 2015 election strongly indicate that people do not like President U Thein Sein or his government or his party. Can this be said to be a failure or a success for the president?

YH: Firstly, the fact that people voted freely in 2015 is a success of the president's reforms. Secondly, the views of the people on the president, and the Union Solidarity and Development Party (USDP) and the former administrative mechanism may be different. People may like and support the president personally, but they may simply not want the old system and its procedures.

KZM: Here I would like to question how much the president understands about the will of the people. The president on his visit to Irrawaddy Division said that "we have made changes. What more change do you want? If you want more, go for communism." Doesn't this imply that he does not understand the voices and wishes of the people?

YH: It is not like that. The president was talking about the political system. He wanted to stress that the country has already adopted democracy and that there is no other system to switch to and that we need to improve this system [democracy]. But because his speech was taken out of context, it could lead to some misunderstandings. To which I say, take a look at the speeches he has given and the acts he has carried out during his term, and it is easy to see that he listens to the voices of the people. He did what he could within the current framework, striking a balance between what is possible and what should be done.

KZM: Why has the Ministry of Information still existed throughout the reform process? Why do state-run newspapers, which are widely regarded as propaganda for the government, still exist?

YH: It is because you private media outlets do not tell all the things that we want to tell the people. That's why we need to be here.

KZM: But doesn't that look like propaganda to a democratic society?

YH: Every government wants to convince its people of its policies. This has also been true for the US government. This was explicitly termed "propaganda" in the past. It was later changed to "public relations," and then to "public diplomacy." In essence, every government has to mobilize public support and has to use the media in doing so. In countries where media pluralism flourishes, [the government] uses private media outlets. In countries like ours, however, where private media don't report the things they don't want to, there must be a government-run newspaper and media, I think. That's why we exist.

KZM: But doesn't this tarnish the image of democracy in a country that's in transition?

YH: Rather than arguing about if the existence of an organization is in line with democracy or not, I would focus on whether the existence of that organization contributes to the flourishing of democracy. There are [similar] organizations in different forms under different names in different countries. In my view, the existence of the Ministry of Information does not affect the development of media or Burma's democratic transition between 2010 and 2015. Frankly, that you can talk to me now, face to face, is only because our Ministry of Information invited you and recommended you for an entry visa.

KZM: The Ministry of Information abolished pre-publication censorship in 2012, providing a great deal of press freedom. But your ministry could have granted greater press freedom. Why didn't you do that?

YH: We need to strike a balance between taking big steps and making sure each step we take is concrete. There is huge room for improvement in terms of the legal and market conditions of our media environment, and we—both state-run and private media—have yet to improve ourselves much in terms of ethics and expertise. So again, we are just trying to make sure each step is concrete. The president has said that taking fast steps will help us win credit, but if the consequences of being fast can affect the country's stability, we will sacrifice popularity to focus on what should get done.

KZM: If the incoming NLD government decides to keep the Ministry of Information and offer you the minister position, what will you do?

YH: I have written my history with U Thein Sein. I would not play on another team. Even if the NLD decides to keep the Ministry of Information, it should appoint someone who has grown with the party and knows its policies, more precisely, those of Daw Aung San Suu Kyi.

KZM: Should state-run newspapers like Kyemon, Myanma Alinn and the Global New Light of Myanmar continue to run under the incoming NLD government?

YH: I have trained the state-run media how to acquire the ethics and expertise, which are needed to create public service media. My staff members have improved from only being able to put out [in newspapers] the news given to them to making reports from various angles. This is what I have done for the ministry as a whole. For individuals, I have trained them to be able to work shoulder to shoulder with their peers in the world of private media, even if the Ministry of Information and state-run newspapers are abolished. I believe that my staff personnel will be able to survive in the media world whether or not the ministry continues to exist or not. And I'm proud of myself for having done this.

KZM: Daw Aung San Suu Kyi's NLD government will seemingly abolish the Ministry of Information bit by bit, and privatize the state-run newspapers. Will they be able to do it easily over a short amount of time? What is your advice to them?

YH: Firstly, I want to tell the ministers who are to take the reins of the ministries that everyone has his own expectations and has formed his own preconceived idea of the ministries they lead. When they actually assume office, however, they should forget these ideas for a while and try to understand the nature of the ministry and staff members before making changes. Otherwise, they will not be able to reach their goal smoothly.

KZM: Suppose the Ministry of Information and state-run newspapers cease to exist next year. Do you think press freedom in Burma will be much better than it is now?

YH: Whether press freedom will improve or not has nothing to do with the existence of state-run newspapers, I don't think. It depends on two things—if media pluralism can be maintained, and if the government will be able to build good relationships with private media.

KZM: You said you have no plan to work with the new government. So what have you planned to do after March 31?

YH: Firstly, I will rest for three months. Then I will do a scholarship or fellowship with an educational organization. Afterward, I'll try to write about my experiences with the reform process. I'll work together with local NGOs that are engaged in raising the political awareness of the public, if there are such NGOs.

KZM: Do you have plans to establish [an NGO] of your own?

YH: I don't. But I'll also write political reviews on my Facebook and write essays—this is an interest that I've recently taken up.

KZM: Will you continue to be a man of the media?

YH: I'll be a citizen journalist.

KZM: Referring to what you just said, what do you mean by scholarships?

YH: It is not a scholarship. It is a fellowship. If there are organizations interested in Burma's affairs and if they want, I'll give lectures on my experiences and take part in discussions and write a paper, if possible.

KZM: We heard that President U Thein Sein will continue to chair the USDP. The USDP may rise again in 2020. If that were to happen, would you have any ambitions to re-enter politics or re-engage with the administration?

YH: It is said that a week's time is pretty long in the political world. And you are asking me about the next five years. I don't know.

KZM: So it is still early?

YH: Yes, it is still early. I will be able to tell you around January 2020.

KZM: Thank you.

The post Dateline Irrawaddy: 'It's Fair to Say That President U Thein Sein Is Burma's Reform Icon' appeared first on The Irrawaddy.

The Irrawaddy Business Roundup (Feb. 13, 2016)

Posted: 12 Feb 2016 06:00 PM PST

A couple uses a mobile phone on the side of a street in Yangon, March 7, 2013. MTN Group, Africa's largest mobile phone company, is interested in a Myanmar operating licence, which it expects will cost the winning bidder $200-$500 million in licence fees. The south east Asian country has a population of about 60 million and a mobile penetration of less than 5 percent, making it an excellent opportunity, Chief Executive Sifiso Dabengwa told journalists after an earnings presentation. REUTERS/Soe Zeya Tun (MYANMAR - Tags: BUSINESS TELECOMS) )

A couple uses a mobile phone on the side of a street in Rangoon. (Photo: Soe Zeya Tun / Reuters)

Telenor Races to 13.7 million Subscribers

Telenor now has almost 14 million subscribers in Burma but competition is ramping up, the Norwegian telecommunications firm said in its latest results announcement.

Telenor has been quickest out of the blocks of the two private competitors looking to tap into one of the world's last populations to be connected to mobile phone networks. It began a staggered rollout of services only in September 2014, shortly after Ooredoo of Qatar became the first foreign mobile phone company to offer services in the country.

The incumbent operator MPT, which has teamed up with a pair of Japanese companies to modernize its services, is still thought to be ahead in terms of subscribers, with Reuters recently putting its count at 18 million.

But Telenor's subscriber number quickly moved into eight figures, outpacing Ooredoo, which had only 4.8 million subscribers as of its latest results, which are from September last year.

Ooredoo Myanmar CEO Rene Meza said recently that the company was now taking a new approach to the Burmese market. Ooredoo was slashing its data tariffs and focusing on improving distribution in order to compete for a bigger mass market presence, Meza told Reuters.

If Telenor's latest results, published this week, are anything to go by, the sector is already getting more competitive.

The company's results for the last three months of 2015 said Telenor Myanmar had picked up an additional 1.9 million subscribers in that period, bringing its total to 13.7 million. Telenor claims that it has 37 percent of SIM cards in circulation.

That growth was slightly slower than previous quarters—Telenor put on 2.3 million subscribers in the third quarter of 2015.

Some deceleration may have been expected, considering that mobile phone penetration has exploded from below 10 percent just four years ago. But Telenor also noted a fall in the average revenue per subscription per month, or APRU, a signal of how much Telenor SIM-card holders are using the company's services.

"ARPU was MMK 5,995 [$4.87], which is 4% lower than the normalised ARPU for the third quarter," Telenor's results said.

While that's only a small drop, Telenor said competition could be part of the reason.

"The decline in ARPU was triggered by tougher competition, coupled by network expansion into low ARPU rural areas," the company said.

In a presentation of the results, Telenor also said that 52 percent of its subscribers were "active data users" suggesting that Burma is fulfilling predictions that its mobile phone users will move quickly toward smartphones.

Telenor now has 4,200 phone towers around the country. It said the network rollout was going "according to plan" and aims to eventually have 9,000 sites.

India's Tata Group Making Moves Toward Burma

In a sign that Burma may be beginning to live up to its promise for Indian investors, several different branches of the conglomerate Tata Sons are looking to enter the country, according to a report in the Mumbai-based Economic Times newspaper.

Tata Sons—India's oldest and one of its largest business empires—is the holding company for Tata Group, which has interests in sectors including aviation, autos, healthcare IT and telecoms. The report said that at least seven of the group's companies "have zeroed in on Vietnam and Myanmar as markets that need to be penetrated."

Subsidiaries Tata Power, Tata Projects, Tata Chemicals, Tata Motors, agricultural products company Rallis, trading arm Tata International and Titan—which makes watches and other luxury goods—were all "either active or are exploring opportunities in the Vietnam and Myanmar markets," a spokesman told the Economic Times.

"The demographics and the economic development stage of these countries represent a market for several products and services from the Tata group," the spokesman said.

Burma is in theory an important part of the Indian government's "Act East" policy, as it forms a gateway for Indian companies to Southeast Asia—one of the world's fastest growing regions, where integration should make cross-border business easier in the coming years.

But other Asian countries like Japan and South Korea have been more prominent in Burma since the economic reforms initiated in 2011.

Indian firms are involved in oil and gas exploration in Burma, as well as pharmaceuticals, private healthcare and shipping. But there have also been reports that the slow pace of Indian investment has frustrated the Burmese government.

The Business Standard newspaper in 2014 quoted Ye Htut, the spokesman for the government of President Thein Sein, complaining about Indian businesses' tendency to "window shop" in Burma.

"Indian businessmen understand our culture, our sensitivities and our tradition. But they are not coming as much as we expected," Ye Htut was quoted saying.

Marubeni Sets Up Fertilizer Factory at Thilawa SEZ

Marubeni Corporation has announced that it is setting up an agricultural fertilizer plant in the Japanese-government backed Thilawa Special Economic Zone close to Rangoon.

The company said in a statement last month that it would begin operations in 2017, and expected to sell 30,000 tons of fertilizer in its first year, mainly catering to the rice-growing heartland around Rangoon and the Irrawaddy Delta.

Japanese firm Marubeni "expects to expand this volume to 150,000 metric tons across Myanmar in 2020 while also increasing the number of products in accordance with domestic market growth," a recent statement said.

It said the Japanese conglomerate—which operates in a number of sectors, including energy, paper and pulp, and foodstuffs—was looking to expand its global fertilizer business.

"In Myanmar, where the improvement of income for farmers is a crucial policy issue, Marubeni is contributing to the increased productivity of major crops such as rice and corn through its sales of effective fertilizers and experimental agricultural studies," it said.

Indonesia's Pertamina Confident of Winning Fuels Tie Up

An Indonesian state-owned energy company is bidding to team up with the Ministry of Energy's Myanmar Petroleum Products Enterprise (MPPE) to sell fuel to consumers in Burma, according to the Jakarta Globe.

The newspaper said Pertamina's marketing director had expressed confidence that the firm would win a tender to work with MPPE, the result of which is expected to be announced this month.

"It’s likely that we would win the tender," Ahmad Bambang, the marketing manager, was quoted saying.

The Jakarta Globe reported that Permatina was planning to invest $33 million in the venture, which would sell co-branded fuels from 18 depots and 12 gas stations around Burma.

"The state energy company virtually controls Indonesia's retail oil fuel market, thanks to its vast distribution network across the archipelago," the newspaper said.

Air Cargo Firms Will Have to Wait for Burmese Boom, Says Trade Publication

Trade publication Air Cargo World has published an article predicting that logistics companies looking to capitalize on Burma's political and economic opening may have to wait longer than expected.

The report pointed out that Japan's Nippon Express has set up a subsidiary in Burma and will operate a warehouse at the Thilawa Special Economic Zone. Switzerland-headquartered Panalpina has also established an office in Rangoon to handle imports and exports by air and sea cargo, it said.

Kuehne + Nagel, also based in Switzerland, has had an office and warehouse in Rangoon since 2013, the report said. But it quoted that firm's local managing director, Amol Singhal, as saying that most of the foreign investment coming into Burma was in the extractive industries, which don't normally require air freight services.

Burma's agricultural and garment exports were also not of interest to air cargo operators, the report said. Firms are interested in potentially exporting Burmese seafood by air, but this is not yet a large enough market.

Air Cargo World also analyzed the infrastructure available to companies wanting to get involved in the sector in Burma. It noted that no airlines currently fly cargo-only planes into the country, and larger aircraft do not land at Burmese airports, which may anyway not have the capacity to handle them.

"Myanmar is opening up," the report concluded, "but it seems a while yet until it will be ready for business."

The post The Irrawaddy Business Roundup (Feb. 13, 2016) appeared first on The Irrawaddy.