Democratic Voice of Burma

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• DVB Debate: How prepared is Burma for the SEA Games?
• Business Weekly
• Latpadaung committee pledges US$1.68 million for local development
• NLD, other parties arrive in Chiang Mai to meet ethnic armed groups
• Japan on stand-by as ITD dumped from Dawei project

DVB Debate: How prepared is Burma for the SEA Games? Posted: 22 Nov 2013 04:36 AM PST Now just a few weeks until the opening ceremony, opinions diverge whether or not Burma has prepared well enough for hosting the SEA Games. Expectations of gold medals are high, as is pressure on the athletes. On this week's panel are: Khin Maung Lwin from the Myanmar Olympic Committee and the Ministry of Sport; senior sports columnist Khin Maung Htwe; and Soe Nyi, the sports editor at First Eleven journal. "There are 33 different sports at this SEA Games", Soe Nyi said. "It is easier to predict which ones we are not going to win any medals than the events where we have good chances." "If it doesn't come out as predicted, it will be embarrassing, said Khin Maung Htwe. Khin Maung Lwin answered the question whether Burma will have an advantage over her rivals being host country. "You could say that. The reality is that Burma has an opportunity to play on our own home turf with the support of our fans." The panelists expressed dissatisfaction with the hiring of foreign professional athletes during previous SEA Games, and Khin Maung Htwe said he is also ashamed that Burma took on Thai trainers to help prepare their teams. Cartoon by DVB Debate Soe Nyi said he asked the Burmese government before the 2011 Games whether they would enter foreign athletes. They said no, but still had foreigners on the Burmese teams in basketball. "I have photographic evidence", said Soe Nyi. "They were all Chinese professionals. And at the 2009 Sea Games, Aung Khaing, who won a gold medal, is 100% Turkish. He can't even speak Burmese. At the prize-winning ceremony, he held the Burmese flag upside down." As an official, Khin Maung Lwin said Burma will not be entering any foreign athletes this year. Referring to the controversy over Burma's sports selection for the games, which has led to protests from other countries, Khin Maung Thwe asked him about the removal of tennis from the list. "As I said before, there are some sports which we included, knowing we won’t win any gold medals. We did it just for sportsmanship", he answered. He dismissed the argument that the relationship between the Ministry of Sports and the Tennis Association is poor. "No, it's not like that. Our relationship is very good. But there are some facts we have to consider: out of 4 or 5 games, we had to choose which games we were going to drop. In the end we left out tennis and gymnastics." In conclusion, the panel highlighted several difficulties and raised some question marks about preparations; however from an official perspective at least, confidence is high that the 27th SEA Games will be a success. Related Stories DVB Debate: How to tackle Burma's economy Burma looks to its lucky stars for SEA Games success DVB Debate: Burmacare – developing the healthcare system in Burma Next week on DVB Debate, the discussion is on religious tolerance. You can join the debate or watch the full programme in Burmese, at www.dvbdebate.com Or share your views with us by commenting on our website at www.dvb.no

Business Weekly Posted: 22 Nov 2013 04:13 AM PST Ups and Downs One US dollar is buying 972 kyat (up four kyat from last week), and is selling at 983 kyat (up six). Gold has dropped some 18,000 kyat to 666,700 kyat per tical. Fuel remains all the same prices: petrol is 814 kyat per litre; diesel 920 kyat; and octane 920 kyat. Good quality rice is still selling at 1,100- 1,200 kyat per basket, with low-grade rice at 850- 900 kyat per basket. Oil companies post final bids for Burma's offshore reserves Bidding closed on 15 November for 30 offshore blocks with many of the world's top oil and gas companies said to be competing for exploration rights. According to International Business Times, multinational corporations such as Royal Dutch Shell, Exxon Mobil, Total, Statoil, and ConocoPhillips are among the more than 60 businesses pre-qualified for the auction. "The blocks are considered highly lucrative, even though their commercial prospects remain unconfirmed," the IBT report said. Among the 30 blocks up for grabs, the 19 deep-water fields are where the greatest potential riches are believed to reside, and foreign firms would be allowed to operate in those blocks without local partners, which operation in the remaining shallow blocks would require. Each company may bid on up to three blocks, the report said. Japan on stand-by as ITD dumped from Dawei Thailand and Burma seized control on Thursday of the multi-billion-dollar Dawei special economic zone from Italian Thai Development Pcl to rescue the floundering project and convince foreign investors to finally come on board. The takeover of the strategically located complex, billed as a gateway for trade with Southeast Asia, follows years of delays that have been blamed largely on the Thai firm's failure to secure private investment and agree on a power source for the 250 sq km (100 sq mile) deep-sea port, petrochemical and heavy industry hub. Read more: http://www.dvb.no/news/japan-on-stand-by-as-itd-dumped-from-dawei-project-burma-myanmar/34609 Burmese firms look to list on Singapore Exchange Lawyers and financial advisors who work closely with Burmese firms say about six to 10 companies are considering listing in Singapore over the next couple of years. "Many Burmese business owners admire the reputation of Singapore Inc and look forward to raising their own prestige that comes with a Singapore listing," said Kim Huat Chia, head of corporate & capital markets at Singapore law firm Rajah & Tann. Singapore's bourse says while it has seen interest from Burmese companies, they will have to meet its corporate governance standards. However, for many businesses, that's still quite a distant goal, lawyers and bankers said. Read more: http://www.dvb.no/news/burmese-firms-look-to-list-on-singapore-exchange-burma-myanmar/34334 Japanese investment predicted to rise Sawada Hideo, the president of the Asia Business Leader Association, predicted that Japanese investment in Burma, currently ranked eighth highest of 32 listed countries, could reach between second and fifth within next five years. Speaking at a seminar entitled "How to Invest in Myanmar", which was hosted at the City FM Hall in Rangoon on 16 November, the event was joined by Japanese businessmen from the hotel, construction and transportation sectors alongside Burmese counterparts and officials from the Ministry of National Planning. DICA director Kyaw Zaw Maung went one better, predicting that Japan could be the top investor in Burma if the Thilawa industrial zone progresses as expected. DBS Bank caters for increased Burma-Singapore trade Chan Wong Meng, the Burma representative of the DBS Bank, the biggest bank in Southeast Asia, said at a press conference in Rangoon on 16 November that the bank's representative office in Rangoon has been restructured to cater for the growing Burma-Singapore trade connection. He said that an increasing number of Singaporean companies are looking to invest in Burma and the DBS is working to create a convenient banking system for them, as well as to assist Burmese companies looking to invest in Singapore. Although DBS Bank has had a representative office in Burma since 1993, it still has not been granted permission to open a branch in the country. Thein Htun leads Pepsi into cola war South Korea's Lotte and Myanmar Golden Star (MGS) have registered a joint venture company to manufacture and distribute Pepsi in the country before the end of this year. MGS is owned by Thein Htun, nicknamed "Pepsi" Thein Htun for his strides to manufacture, distribute and market Pepsi and Mirinda in Burma in the early 1990s before the US-led sanctions in 1997 led the US firm to withdraw from the country. Thein Htun then introduced a new range of soft drinks under the Star brand. His latest move takes him into direct competition with Coca Cola, which currently leads Burma's soft drinks market where it sells bottles and cans for 200, 300 and 700 kyat. Burma aims to privatize 30 airports The Department of Civil Aviation's director-general Tin Naing Htun said at a press conference on 20 November that the government is looking to privatise 30 of 69 domestic airports. He said that Burmese companies will be given priority in the bid for tender licenses, with criteria including plans to improve the physical condition of each airport, while foreign companies will only be allowed to operate as subsidiaries for domestic companies. Meanwhile, Asia World Company, contracted to construct Naypyidaw International Airport under a BOT agreement, has proposed handing back the project to the Burmese government, saying it is no longer financially viable. The airport began taking flights in 2011. Thai paper firm wins mill tender The Thailand-based Double-A paper company has won a licence to operate the Tharpaung Mill, the biggest paper and pulp-mill in Burma, an official from the Ministry of Industry has confirmed. The official said one domestic and four foreign-based companies joined the tender bidding for the mill, which was ultimately won by Double-A. The company will have to pay US$2 million per year in rental fees to the government, and salaries for some 1,800 staff. The Thai firm is also due to invest $300 million to build a new factory aimed at manufacturing 300,000 tons of paper a year. Japanese, Burmese firms form JV to produce rice products Japan based Mitsui & Co Ltd and Myanmar Agribusiness Public Corporation Ltd. (MAPCO) have permission to form a joint venture to make rice products under the name Myanmar Rice Industry Co Ltd, Eleven Media reported last week. The new firm officially launched on 13 November, and says it plans to produce broken rice, bran, bran oil, rice flour and noodles. The overall investment will be around US$100 million, according to officials from MAPCO. The company will build four plants in industrial zones located in Twante and Kyaiklat (west of Rangoon), Letpatan (Pyay region) and Naypyidaw, scheduled for completion in 2015. Burma resumed rice exports to Japan in June for the first time in over 40 years when Japan bought about 5,000 tons of rice. CB Bank pledges donation to SEA Games The Co-operative Bank (CB Bank) has pledged a 600 million kyat (over US$600,000) donation to Burma's Sports Ministry for the 27th SEA Games. CB Bank President Khin Maung Aye said on 18 November that the assistance would include funds for athletes' uniforms, 500 trolleys for airports and stadiums, ATM machines, money exchange counters and entertainment programmes to promote the sports events. Ooredoo to sponsor Burmese football teams at SEA Games Qatar-based telecom operator Ooredoo, which won a potentially lucrative contract to develop telecommunications in Burma, has pledged to sponsor expenses for the country's various football teams – the men's team, women's team, and both futsal teams – competing in 27th SEA Games which kick-off in Naypyidaw on 11 December. Other prominent sponsors for the SEA Games include the military-owned Union of Myanmar Economic Holdings, Myanmar Brewery, Kanbawza Group, Panasonic, Samsung, Canon and Fuji Xerox.

Latpadaung committee pledges US$1.68 million for local development Posted: 22 Nov 2013 03:24 AM PST The Latpadaung implementation committee revealed on Wednesday that a US$1.68 million budget has been allocated for regional development, including programmes of job creation for locals; education; healthcare; electricity supply; supplying potable water; and transportation. "The Committee to Implement the Recommendations of the Report of Letpadaungtaung Investigation Commission is taking measures to continue the mining project by drawing plans to make sure the State, local people and the younger generations receive real benefits from [the project," it said in a press statement. The committee also said that 283.69 acres of land which were not needed for the project were being returned to farmers, and that sums had been paid by the committee to farmers as compensation for lands, crops and wells which were confiscated to make way for the project. Min Min of local campaign group, the Committee to Protect the Interests of the Latpadaung Mountain, confirmed that local authorities were working to provide electricity for villages in the area. Related Stories Copper mine protestors given one-month sentences in Rangoon Police remove guard posts to appease Latpadaung villagers Latpadaung villagers mark anniversary of firebombing "We see that the authorities have been working on providing electricity for two or three villages in the area and we recognise those efforts," he said. "Actually, it is the government's responsibility to provide electricity even if the company won't. So we accept it either way." La Pyae, a resident in Mogyopyin, said his village still doesn't have access to potable drinking water. "The wells in the area where Sete and Zeetaw villages are located only produce saltwater so we have to go to fetch drinking water from other villages," he said. "So far, the two mining companies involved – the UMEH and Wanbao – have done nothing to assist us." According to the committee's statement, around 100 million kyat (over $100,000) has been spent to provide potable drinking water to the villages of Wadan, Tepinkan, Mogyopyin and Kyaw. However, at least one disgruntled local, Sandar, said the committee has done nothing effective to assist the locals. "I think the committee is doing only whatever is necessary to fulfil its duty to implement the Latpadaung Investigation Commission's recommendations," she said. "However, Kangyigon village has completely run out of drinking water and the committee is doing nothing except make promises. Also, they have not built the hospitals they said they would."

NLD, other parties arrive in Chiang Mai to meet ethnic armed groups Posted: 21 Nov 2013 11:11 PM PST Leaders of Burmese political parties began arriving on Thursday in Chiang Mai where they are scheduled to hold a meeting with ethnic armed groups to discuss the current peace process. The meeting, organised by the Myanmar Peace Center, will include officials from the National League for Democracy, the National Democratic Force, the Rakhine Nationalities Development Party, the Chin National Party, the Shan Nationalities League for Democracy and the Democratic Party (Myanmar). They will exchange views with representatives of most of the main armed groups, including the Kachin Independence Organisation, which is yet to accede to Burmese government plans to establish nationwide ceasefire agreement. The meeting, which is also expected to include talks on Burmese federalism, is scheduled for Friday and Saturday, ahead of another round of negotiations between the ethnic armed groups and a government delegation next month in Karen state capital Hpa-an. Chin National Party Chairman Zozam told DVB as he arrived at Chiang Mai International Airport on Thursday that a meeting with the armed groups was something he never dreamed would happen. Related Stories Gun Maw calls on public to help peace process NLD's 'constitution rally' goes ahead in Naypyidaw They say 'peace', we say 'peace process': Gen. Gun Maw of KIA "This is something we couldn't even dream of and it signifies that political changes are taking place [in Burma] – by allowing political leaders in the country to meet with their brothers and sisters in exile. While it might not be considered substantial, the opportunity to meet with the exiled activists is priceless," said Zozam. Khin Maung Swe, the leader of the National Democratic Force, said Burma is now entering its "political spring". "Now is the time the snow begins to melt. As tensions reduce, we are shifting to an all-inclusive political environment. However, struggles and challenges still lie ahead – we are, after all, here at the risk of prosecution under Article 17(1) [the Unlawful Associations Act]. But this is evidence of our strong will to see peace in the country," he said. Political parties are forbidden – under a ruling by the previous military junta – of making contact with organisations deemed "unlawful". Several Chiang Mai-based civil rights groups and NGOS, such as Women's League of Burma, will also attend the two-day conference. The ruling Union Solidarity and Development Party, despite being invited by MPC, will not attend.

Japan on stand-by as ITD dumped from Dawei project Posted: 21 Nov 2013 09:29 PM PST Thailand and Burma seized control on Thursday of the multi-billion dollar Dawei special economic zone from Italian Thai Development Pcl to rescue the floundering project and convince foreign investors to finally come on board. The takeover of the strategically located complex, billed as a gateway for trade with Southeast Asia, follows years of delays that have been blamed largely on the Thai firm’s failure to secure private investment and agree on a power source for the 250 sq km (100 sq mile) deep-sea port, petrochemical and heavy industry hub. “If ITD continues, it’s impossible for new investors to come in,” Set Aung, a former economist and now a deputy central bank governor in Burma, said during a meeting of Thai and Burmese officials in Bangkok on Thursday. The sidelining of ITD could pave the way for the involvement of Japanese industrial and hi-tech firms long established in neighbouring Thailand and who are fast taking advantage of investment opportunities in Burma since its new government introduced a raft of liberal reforms two years ago. Set Aung told Reuters that Japanese companies had expressed interest in Dawei during talks a day earlier and would most likely announce their intentions next month in Tokyo when Dawei was due to be discussed on the sidelines of a regional meeting. He said the focus was on getting the basic infrastructure in place in Dawei to attract Japanese firms. That meant stripping ITD, Thailand’s largest construction group, of its 75-year concession to lead the project and hiring an international firm to carry out due diligence on work it has already started. That should be completed by May 2014 and ITD would be reimbursed for the work so far, the officials agreed at the meeting on Thursday. Related Stories Dawei SEZ on hold as Burma seeks to reassure Ital-Thai Karen language proposal gets green light in Tenasserim Thai firm reacts after Dawei seizure rumours ITD President Premchai Karnasuta said the company, which was granted the concession in the 1990s under a deal with Burma’s then ruling military, welcomed plans to overhaul and inject foreign capital into Dawei, also known as Tavoy. “Our concession right has gone…but we still have the right to join auctions in several projects,” Premchai said, adding that ITD has invested around 6 billion baht ($189 million) in Dawei and it expects full reimbursement plus interest. Located along the Thai-Burmese peninsular with highway links to industry hubs near Bangkok and along its eastern seaboard, Dawei is arguably Southeast Asia’s most ambitious industrial zone and a potential boon for firms relying on the transport of goods around the cumbersome Malacca Strait, the world busiest shipping lane. Initial proposals included an $8 billion deep-sea port, a refinery, gas and coal power plants and steel mills. All these plans are set to be reviewed under any new agreement. “We will bring a new project management company on board,” Thai Commerce Minister Niwatthamrong Boonsongpaisan said. “The next step is to find a new investor for phase one which includes roads, two small ports and light industries.” Government involvement in Dawei is likely to boost Japan’s confidence in a project that faces problems ranging from a lack of basic infrastructure to conflicting information on power supply, funding, costs and planned facilities. Dawei’s story stands in stark contrast to that of the 2,400-hectare (5,900-acre) Thilawa economic zone near Burma’s biggest city, Rangoon, which is moving ahead quickly following the establishment of a Burma-Japan joint venture involving Mitsubishi Corp Marubeni Corp and Sumitomo Corp as well as Japanese state support. Japanese companies have enjoyed smooth ties with both Thailand and Burma. Japan is Thailand’s biggest foreign investor through its manufacturing bases for the likes of Honda and Toyota. Japan has also moved into Burma to work in sectors ranging from infrastructure to information technology, heavy industry and the stock market. Masaki Takahara, head of the Japan External Trade Organisation in Burma, said Japanese firms were hesitant about ITD’s leadership and now would be drawn to Dawei once basic infrastructure was ready. “I know a lot of Japanese companies will be interested in entering into Dawei,” he told Reuters. “I really support the development of this area. It’s a beneficial project for the entire ASEAN” area.

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