Saturday, April 30, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine


Burma Thirsts for Bottled Water, But Quality Leaves Bad Taste

Posted: 29 Apr 2016 06:59 PM PDT

A man carts 20-liter bottles of water down a street in Rangoon. (Photo: Htet Khaung Linn / Myanmar Now)

A man carts 20-liter bottles of water down a street in Rangoon. (Photo: Htet Khaung Linn / Myanmar Now)

RANGOON — When Myo Arkar returned to his home in Rangoon's North Dagon Township after working through a long, hot day, he opened a cold bottle of purified water to quench his thirst, but as he drank he sensed a rusty smell and taste, and then noticed brown particles swirling in the bottle.

Disgusted, he threw it away. "I informed everyone I know of this incident, and reminded them not to drink that brand," he said of the water, which is produced at a small purifying facility in Shwepyithar Township.

Many residents in Burma's towns and cities consume bottled water that they presume is properly purified. But a rapid growth in demand for such water and a lack of government oversight means many small, unlicensed operators produce questionable quality water that regularly leaves consumers with a bad taste in their mouths.

"I have used more than four brands of drinking water last year. The new brand that I am using now has had no problem yet," remarked Thura, a taxi driver from Sanchaung Township, who said he switches brands after drinking bad quality water, rather than file a formal complaint with health authorities.

Unlicensed Brands on Sale

Among Burma's town and city residents, around a third drink bottled water, according to data from the 2014 census, as urban water supply systems are often of a poor standard. Though urban consumers' drinking water problems pale compared to those in the countryside—where many poor households rely on tube wells, ponds and lakes that might be unclean or even toxic—they could easily be consuming an unlicensed brand.

Dr. Tun Zaw, director of the Ministry of Health's Food and Drug Administration (FDA), said an inspection of markets in Rangoon and Mandalay last December found 21 unlicensed bottled water brands on sale.

A countrywide FDA survey of bottled water conducted early last year approved some 750 brands, but found 73—or close to 10 percent—of brands lacking in quality, or having failed to register with the FDA. The FDA subsequently released a list of these banned brands and their production locations.

By law, drinking water producers are required to register with the FDA and allow it to inspect their facilities for hygiene, production methods and quality tests.

Dr. Kyaw Linn, a former FDA director, told Myanmar Now that consuming unlicensed drinking water could carry health risks. "Fungus and bacteria in this drinking water can pose health hazards, such as diarrhea and worms, as well as other bad consequences depending on the harmful chemicals in the unhygienic water," he said.

More needs to be done to improve enforcement of FDA standards, he said, adding, "Unregistered brands will not guarantee hygiene, they might even use tap water."

Growing Thirst

Burma's economic growth of recent years has led to rising demand for bottled drinking water in both urban and rural areas, said Ba Oak Khaing, chairman of Consumer Protection Association of Myanmar. Setting up a small-scale purification facility is fairly simple and can even be done in a residential house or a compound, he said, adding that small facilities produce about fifty to a hundred 20-litre bottles per day.

Tun Zaw said such facilities had proliferated in recent years and it was impossible for the FDA to inspect all new brands coming on to the market, adding that enforcing a ban on brands was also difficult. "If we announce that a brand name produces unhygienic drinking water, they will just change their name, for example from 'Sein' to 'Shwe,'" he said.

Tun Zaw said the FDA works with municipal authorities to enforce drinking water controls. The agency conducts tests and checks, and issues recommendations, while local authorities are responsible for granting licenses and implementing a ban and shutdown of facilities.

Ba Oak Khaing said his association, the FDA, staff of the Yangon City Development Committee (YCDC) and the police conducted surprise inspections of water producers' facilities in Rangoon in February and found that 13 failed to meet hygiene standards.

"These small water-purifying facilities are built in the compound of regular houses. They do not observe the rules of hygiene," he said, explaining that some operations were situated in the open air, sometimes even near grazing cattle or sewage run-off.

Ba Oak Khaing said the FDA and municipal authorities issued bans against the 13 companies, but no further checks have been carried out since to enforce the order.

Ar Kar, the owner of Pin Lone Water, a large, licensed purifying plant in Rangoon's Hlegu Township, said many small operators had entered the growing drinking water market in a bid to capture a share, and some cared little for quality and hygiene standards.

"Some purified water might be tainted with dust and smells because the old water bottles were not thoroughly cleaned when they were re-used," he said. "Such small water-purifying plants are copying our brands and these things may tarnish our popularity."

One small, unlicensed bottled water producer from South Dagon said his facility turned out about fifty 20-litre bottles per day, which were sold in two residential quarters in the township. The man, who asked not to be named, admitted to not registering with the FDA, but said consumers of his water have nothing to fear.

"Most of the market for my brand is only in the nearby area, and I am focused on the hygiene of the water," he said.

This story originally appeared on Myanmar Now.

The post Burma Thirsts for Bottled Water, But Quality Leaves Bad Taste appeared first on The Irrawaddy.

Dateline Irrawaddy: Shwe Mann ‘Could Have Done More to Build Trust’

Posted: 29 Apr 2016 05:59 PM PDT

 On this week's panel, Dr. Yan Myo Thein and the chairman of the Democratic Party for a New Society, Aung Moe Zaw, join The Irrawaddy's Burmese editor Ye Ni.

On this week's panel, Dr. Yan Myo Thein and the chairman of the Democratic Party for a New Society, Aung Moe Zaw, join The Irrawaddy's Burmese editor Ye Ni.

Ye Ni: Welcome to Dateline Irrawaddy! This week, we'll discuss the recent purge of 17 senior members of the Union Solidarity and Development Party [USDP], including Thura U Shwe Mann. Political commentator Dr. Yan Myo Thein and chairman of the Democratic Party for a New Society Ko Aung Moe Zaw will join me for the discussion. I'm The Irrawaddy Burmese editor Ye Ni.

Ko Yan Myo Thein, Ko Aung Moe Zaw, as you know 17 party members including Thura U Shwe Mann were recently purged from USDP. People say that it is the sequel to the midnight purge [when Shwe Mann was removed as chairman of the then-ruling USDP last August].

The USDP contested the November election and suffered a humiliating defeat. Afterward, U Shwe Mann cooperated with Daw Aung San Suu Kyi's government. Daw Aung San Suu Kyi described her government as a government of national reconciliation and worked together with U Shwe Mann. Now, U Thein Sein has taken the reins of the USDP. Does the fact that U Thein Sein's leadership has ousted U Shwe Mann suggest that the USDP is not willing to cooperate with Daw Aung San Suu Kyi and, instead, wants to stand in opposition [to her government]?

Yan Myo Thein: I don't view the purge of 17 members including U Shwe Mann as [the work of] an internal faction within the USDP. But I guess it may be a political move to push U Shwe Mann closer to Daw Aung San Suu Kyi. Looking at the current situation of the USDP, it experienced an overwhelming defeat in the November election. And it does not garner people's interest. Most people are not interested in and don't support U Shwe Mann, who is the ex-leader of the USDP. So his removal isn't an unusual move for the USDP, I don't think.

YN: In his statement, U Shwe Mann said that it is an intra-party issue. But he also said that it may concern the interests of the entire nation. What does he mean by this?

Aung Moe Zaw: I assume the purge is just the internal work of the USDP. I don't think it is a big issue that will spill over and affect the entire country. Again, speaking of national reconciliation and building democracy, they [the National League for Democracy-led government] have to work toward reconciliation with the military and armed groups as well as build trust between political forces. But we have to consider carefully whether [Suu Kyi's cooperation] with U Shwe Mann should really be viewed as a national reconciliation effort. As Ko Yan Myo Thein said, the USDP is not a strong opposition party, based on the election results, though I don't know how strong it is in terms of the size of its network, including businesses and assets. Still, it's not a strong party. Today, the party is not in a position to shake up the country politically. The purge was just a normal intra-party issue, I'd say.

YN: It's fair to say that the USDP is a rich party, considering its possessions nationwide. But if this faction results in a conflict of interest regarding the party's possessions, can this lead to a situation that can harm the interests of the country, as Thura U Shwe Mann said?

YMT: If the USDP has ousted U Shwe Mann and other members in line with party rules and regulations, it's just an intra-party issue that was handled accordingly. The party's possessions are another problem. To understand this, we need to go back to the time when the party was a social organization [the Union Solidarity and Development Association]. That association was heavily backed by Burma's previous governments. It grew thanks to this support and was transformed into a political party just prior to the election in 2010. No one knows exactly how the possessions were transferred when the association was transformed into a political party. If U Shwe Mann can show that this issue could have larger implications for the rest of the country, then more people would surely be interested.

YN: There is also speculation that U Shwe Mann will establish a party of his own. If he does this, how would he ask for his share of [the USDP's] possessions, including the party's flags, emblems and so on, within the existing legal framework?

AMZ: It depends on the Union Election Commission [UEC]. As far as I understand, it was U Thein Sein who signed the registration as chairman when the party was registered with UEC. And it's not like the party split in two and that U Shwe Mann left with a large number of followers when he was ousted. And they were removed in accord with party's rules and regulations. So, they [Shwe Mann's faction] have little legitimacy to appeal to the UEC, I think. If he wants to set up a party, he has to do it himself. Some of his followers from the USDP and his outside supporters may join a new party. But it would be difficult for him to claim the party's possessions and flags and emblems.

YN: Another interesting thing is that the USDP is now back under the leadership of U Thein Sein. Do you think the party will be a major opposition to Daw Aung San Suu Kyi's government?

YMT: At present, there are only around 40 lawmakers from the USDP in Parliament, which is less than 10 percent of total lawmakers in Parliament. I find no reason to believe that the USDP will become a strong opposition in Parliament with such small numbers. No way! Moreover, they don't t have the support and trust of the people. It's strong neither inside nor outside Parliament. So how can it become a strong opposition? There's little chance of this happening. Still, they are very financially strong and may have a strong network of contacts because of the role they have played in the past. If they take advantage of that, then they could enter and engage with civil society through the guise of extra-parliamentary politics. Anyway, I don't think at all that the USDP will gain strong public support in the next five years.

YN: What is your view, Ko Aung Moe Zaw?

AMZ: The more democratically transparent our country becomes, and the faster our country's transition becomes and the more our country meets democratic norms, the faster ex-authoritarians and their associates will fade away. The 2015 election clearly showed that people do not want them at all.

YN: Let's go back to U Shwe Mann. Many believe that U Shwe Mann was purged from the USDP because he chose to work together with Daw Aung San Suu Kyi, with the USDP accusing him of betraying the party. Under such circumstances, what advice do you think Daw Aung San Suu Kyi would give him? He's done a lot to help Daw Aung San Suu Kyi achieve many of today's successes.

YMT: Personally, I don't think most people are interested in the purge of U Shwe Mann and other members of the USDP, though the media and educated people may be interested in the issue. In my view, we need to assess whether the cooperation between Daw Aung San Suu Kyi and U Shwe Mann has really served the purposes of national reconciliation and democratic reform for the country. As Ko Aung Moe Zaw said, there are many different entities that should be involved with reconciliation. For example, until 2010, [the NLD] failed to build understanding and trust with political alliances it had previously worked shoulder to shoulder with. Only after 2012 did it try to build these relationships. We need to think about whether this is really a step toward national reconciliation.

Again, U Shwe Mann served as the third-highest official in the military [junta]. If he had been dedicated to national reconciliation, he could have done a lot more by now to build trust between democratic forces and the military as well as between ethnic armed groups and the military. Looking at his actions over the past three, four years, I don't find them satisfactory at all. The country and people have not gotten benefits from [Shwe Mann's] cooperation with Daw Aung San Suu Kyi, but U Shwe Mann has gotten [them].

YN: Ko Yan Myo Thein, Ko Aung Moe Zaw, thank you for your contribution.

The post Dateline Irrawaddy: Shwe Mann 'Could Have Done More to Build Trust' appeared first on The Irrawaddy.

The Irrawaddy Business Roundup (April 30, 2016)

Posted: 29 Apr 2016 05:09 PM PDT

A Myanmar National Airlines plane is seen on the tarmac of Rangoon International Airport on Sept. 20, 2012. (Photo: Reuters)

A Myanmar National Airlines plane is seen on the tarmac of Rangoon International Airport on Sept. 20, 2012. (Photo: Reuters)

Local Aviation Sector 'Unsustainable': Report 

Airline mergers and exits from Burma's domestic aviation market are inevitable, according to a new report from the CAPA Centre for Aviation, which highlighted oversupply on both internal and international flights.

In an online preview of its new report "Myanmar Aviation Outlook: 2016," the Sydney-based market intelligence firm said the country's aviation market is "ripe for a shake-up, which should ultimately improve conditions and profitability."

"Myanmar has huge potential but for at least the short term it faces monumental challenges," it said.

Domestically, the report said, some 10 local airlines are now competing for a market of less than 3 million passengers.

"Mergers and exits are inevitable. The current situation, with several airlines competing on relatively small trunk routes, is unsustainable," said CAPA. "The new government could pursue reforms that shake up Myanmar's airline sector and improve profitability. However, change is hardly a certainty."

The preview also touches on competition between the state-run Myanmar National Airlines, which only last year returned to the international scene, and Myanmar Airlines International, a spin-off of the national carrier that is run by Burmese conglomerate Kanbawza (KBZ) Group.

Both airlines are now flying the highly competitive routes between Rangoon and Singapore and Rangoon and Bangkok, and both are eyeing more expansion around the region. MNA has recently launched flights to Hong Kong, with the previous government declaring that it was comfortable making a loss on a venture it believed was necessary to restore the country's international reputation.

CAPA suggested the new Aung San Suu Kyi-led government that took power in late March "may relook at the previous government's decision to fund ambitious international expansion for MNA, which previously only operated domestic services."

"A partnership or even merger between MNA and MAI would be sensible as the current situation seems unsustainable," it added.

New Commerce Minister Targets Tripling of Exports

Burma's new commerce minister reckons the country's exports can triple in the government's five-year term, identifying international markets as the key source of growth.

State media on Sunday reported comments from Than Myint, the National League for Democracy's selection to head the Ministry of Commerce, during a meeting with exporters in Rangoon.

"Our country must strive for a threefold increase in its exports in five years," he was quoted as saying by the Global New Light of Myanmar. He pointed to the example of nearby Vietnam, which "saw its export volumes increase fourfold in eight years," he said.

Than Myint also decried the current reliance on neighboring countries for selling Burmese goods. He said he wants exporters to find markets further afield in Asia, as well as in the United States and Europe, the report said.

Burma has run high trade deficits in recent years, with exports largely consisting of products from natural resource extraction or agriculture. A report from Chinese state media last month, quoting the Commerce Ministry, valued Burma's total exports for the 2015-16 fiscal year at $10.5 billion, compared with $15.8 billion in imports.

Few specific economic policies have been announced so far by the new government, and the new minister was apparently bombarded with complaints from exporters over issues ranging from the price of land to the country's black market.

Without going into detail, the report cited Than Myint pledging to "cooperate with relevant organizations to shut down illegal trade as a national concern" and to "give capital and technology to private small and medium sided [sic] businesses."

A former Ministry of Finance official, 72-year-old Than Myint has served as an economic advisor for the NLD since 2012.

His credentials came under scrutiny when he was nominated to serve in the new cabinet, however, as it emerged that a doctorate he claimed to have was from a school in Hawaii known to offer qualifications for money. Regardless, the minister was identified by the Global New Light of Myanmar as "Dr. Than Myint."

New Telecoms Joint Venture Could Be Formed Next Month

The new joint venture that is set to become the fourth operator in Burma's rapidly expanding mobile phone market is likely to be formed in May, according to a Vietnamese news report.

Citing information confirmed by Viettel—the Vietnamese military-owned telecommunications firm named by the government in March as the only qualified foreign bidder after a tender process—VN Express reported that negotiations on the new joint venture are expected to be completed next month.

Viettel is in talks with Star High Public Company, a consortium of local firms overseen by the Burmese military, to form the venture. "[T]he parties hope Myanmar's government will grant a license in June," VN Express said.

The joint venture—expected to invest about $1.5 billion to build its network—was approved in the last month of the outgoing previous government.

A report on Deal Street Asia also said the joint venture could be formed by the end of May.

The report quoted the director of one of the public companies involved confirming that the new operator would have access to the military-owned Myanmar Economic Corporation's network of CDMA phone masts that are currently used by a military-run phone provider under the name MecTel.

"We will have the admittance to the CDMA towers and would get the opportunity to take up the space. We will also work on a resource sharing with the towers operators already existing," Zaw Min Oo, a director of consortium member Myanmar Technologies and Investment Corporation, told Deal Street Asia.

Telenor Reports 1.8m More Subscribers in First Quarter

Telenor's growth in Burma remained almost steady in the first three months of 2016, with the Norwegian company now claiming 15.5 million subscribers, according to results published this week.

Telenor grew rapidly after launching in September 2014, putting on 3 million subscribers in the first quarter of 2015, for example. The firm has raced ahead of its private license-holding rival, Ooredoo, which now has 6.9 million customers in Burma.

Growth in subscriber numbers has slowed for Telenor, but appears to have steadied. Telenor put on an additional 1.8 million subscribers in the first quarter of this year, compared with 1.9 million subscribers added in the final quarter of last year.

Telenor also said it now has more than 5,000 towers across the country, adding 838 sites in the first quarter.

Qatar-based Ooredoo also reported new figures for quarter one this week. The company has brought in a new CEO, who has pledged to take a more mass-market tack in order to win more market share.

The company said it had more than doubled its subscriber base since the first quarter of 2015, when it had 3.4 million customers. But Ooredoo's growth remains slower than Telenor's—comparing the latest announcement with its subscriber figure announced at the end of 2015 shows that only about 1.1 million new subscribers were added in the first three months of this year.

The former monopoly holder, Myanma Posts and Telecommunications (MPT)—now run as a joint venture between the government and Japanese investors—claims more than 18 million subscribers.

American Interest in Burmese Coffee

Trade publication Roast Magazine says Burma is beginning to be seen as a potential source of specialty coffee for US buyers.

The publication's Daily Coffee News website reported on an event held by the Specialty Coffee Association of America (SCAA) in Atlanta, Georgia, earlier this month, where Burmese coffee producers met with potential buyers.

The report said buyers in the competitive US market are "in constant search of new and exciting specialty coffees to present to their quality-concerned customers," and therefore Burma "presents an enticing proposition."

Efforts to build the infrastructure to export high-quality coffee from Burma were being closely watched, the report said, noting that the SCAA recently awarded 56 of 60 Burmese coffees at "specialty-grade" or above at a cupping competition.

The report pointed to projects by the Coffee Quality Institute and US nonprofit Winrock International that are providing funding and on-the-ground assistance to Burmese coffee farmers.

Also in attendance was the Myanmar Coffee Association's chairman, Ye Mint. "We are sharing the knowledge and sharing the information with all of our people," he told Daily Coffee News. "We start with following the good practices for the processing technology."

The post The Irrawaddy Business Roundup (April 30, 2016) appeared first on The Irrawaddy.