Wednesday, January 8, 2014

The Irrawaddy Magazine

The Irrawaddy Magazine

Hong Kong Recruiters Pitch for Burmese Home Help

Posted: 08 Jan 2014 05:06 AM PST

Myanmar, Burma, The Irrawaddy, Hong Kong, domestic help, migrant workers

A foreign domestic helper carrying a child walks with another child outside a school in Hong Kong on Feb. 26, 2013. (Photo: Reuters / Bobby Yip)

RANGOON — A delegation of Hong Kong recruitment agencies is in Burma in an attempt to drum up interest in a proposed scheme to allow Burmese citizens to work as domestic helpers in the Chinese special administrative region.

Ahead of a discussion with officials from Burma's Ministry of Labor in Naypyidaw on Thursday, the Hong Kong Chamber of Employment Agencies met with Burmese recruiters in Rangoon on Wednesday, explaining the nature of domestic work in Hong Kong along with related matters such as labor law and the respective rights and obligations of employers and workers in the sector.

Anticipating a decline in the numbers of maids from Indonesia and the Philippines, the two main source countries in the past, Chamber chairman Joe Chow told The Irrawaddy that there could be up to 20,000 jobs to be filled over the next four years, for Burmese seeking work as domestic helpers in Hong Kong.

"The numbers from the previous countries of recruitment are receding and there is now opportunity for other countries," Chow said.

As of November 2013, there were just over 320,000 domestic helpers working in Hong Kong, an increase from about 256,000 in 2008. Of the current total, 51.4 percent are from the Philippines and 46.4 percent are Indonesian, according to the Hong Kong Chamber of Employment Agencies.

Recruiters expect Hong Kong's appetite for foreign helpers to hold up, with the number of Hong Kong citizens aged over 65 increasing by 1.5 times over the next two decades. This will mean, according to the Hong Kong Chamber of Employment Agencies, that "our society needs a tremendous manpower to support Hong Kong's elderly care services."

But with the Indonesian and Philippine economies growing in recent years—meaning more jobs at home—recruitment prospects for Hong Kong families seeking maids from either country are declining, in turn prompting agencies to scout across the region for other options.

Relations between Hong Kong and the Philippines have deteriorated since the 2010 murder of eight Hong Kong tourists in a mass shooting on a bus in Manila. Late last year, Hong Kong lawmakers mulled banning Filipino domestic workers in retaliation for Philippine President Benigno Aquino III's refusal to apologize for the killings, which sparked a wave of anti-Filipino rhetoric in Hong Kong and mainland China.

Burma, where a parliamentary committee last year estimated unemployment at 37 percent, has long been a source of emigrants, mostly to Malaysia, Thailand and Singapore, with an estimated 3-5 million Burmese living outside their homeland.

A recently commenced Hong Kong scheme to recruit Bangladeshis to work as domestic helpers in Hong Kong has fallen flat, however, meaning Hong Kong recruiters are pinning their hopes on Burma.

Seeking to dispel concerns about potential mistreatment of domestic workers in Hong Kong, Paul Chan, the Chamber's vice chairman, said "Hong Kong is a civilized, multinational and safe society," running through a sample job contract via PowerPoint, and outlining domestic helpers' rights under Hong Kong law.

Almost one-third of a million domestic helpers already work in Hong Kong, numbers that Chan said would help new arrivals fit in. "We have no doubt they will make friends very soon," he told Burmese agency counterparts, referring to possible Burmese hires going to Hong Kong.

Win Min Min, a Burmese recruiter who in recent times has been matching Burmese women with Singaporean families to work as domestic help in the Southeast Asian city-state, said there are a number of issues to be ironed out, however, before it will be possible to send Burmese domestic helpers to Hong Kong.

Her agency, Myanmar Express Link, typically charges three to four months' salary equivalent to Burmese workers who secure jobs in Singapore—repayment for the training and other expenses, such as travel from rural areas to Rangoon—prior to deployment.

"But Hong Kong law does not allow such arrangements," she said, referring to the repayment made by Burmese migrant workers in Singapore. "So it is not clear how the training will be covered, and if the girls are not trained, they can't get jobs as helpers."

Nonetheless, the Hong Kong Chamber of Employment Agencies reckons that thousands of Burmese domestic helpers could soon be working in Hong Kong.

"If the Ministry of Labor allows us, we can have the first recruitment within four months," Chow said.

The post Hong Kong Recruiters Pitch for Burmese Home Help appeared first on The Irrawaddy Magazine.

Thein Sein Plans $20 Salary Increase for Civil Servants, Pensioners

Posted: 08 Jan 2014 04:31 AM PST

Myanmar, Thein Sein, government spending, budget

Burma's President Thein Sein speaks during televised address to the nation in March 2013. (Photo: President's Office website)

RANGOON — President Thein Sein on Tuesday announced plans to raise civil servant salaries and government pensions with about US $20. It marks the third time that his cabinet has raised government salaries since taking office in 2011.

Thein Sein presented the government budget for the 2014-2015 financial year and proposed the raise for Burma's approximately 2 million government employees and pensioners per April 1, according to government mouthpiece The New Light of Myanmar.

The newspaper failed to provide key details of Thein Sein's 2014-2015 budget and the overall size of the government budget remains unclear. The proposed budget will still have to be approved by Parliament.

In 2012, Thein Sein increased government salaries with $30 and last year he raised salaries with $20. The combined measures will increase the minimum government salary from $37 in 2011 to $107 in 2014, a staggering 190 percent increase.

On Tuesday, the president said the latest raise was being introduced because of an improved government budget and robust economic growth, while the measures also seek to address a rise in inflation.

Burma's civil servants have long been paid paltry salaries on which they struggle to survive. The situation has created an ineffective government workforce, prone to demanding bribes for performing public services. Many officials are also forced to take extra jobs, which they sometimes perform during office hours of their government jobs.

Nyo Nyo Thin, a Rangoon Division lawmaker with the Democratic Party, welcomed the latest raise in salaries of government servants and retirees, but she warned that such measures could lead to a hike in commodity prices.

"This is good news for government employees, but … in the past commodity prices used to increase [after salary increases]," she said. "People are already suffering from high commodity prices, this issue should be solved."

Khin Maung Nyo, an economist who writes for the weekly World Economics Journal, said the latest $20 raise would significantly improve the income situation of many civil servants, adding that Naypyidaw had long been able to afford such a raise, but the former military government had refused to do so.

He said the government could do little about the price of commodities, adding, "It is too difficult for the government to bring down current commodity prices."

Htein Lin, a manager at the Inland Water Transportation Department, said he was glad to hear the news of Thein Sein's latest salary raise.

"An increase of 20,000 kyat [$20] per person is not much, but we can understand that the government has to pay money to all employees, including pensioners. In the past, the raise was only for existing employees, now pensioners are included," he said.

"For pensioners, 20,000 kyat can be used to buy a bag of rice, at least they can then support their household," said Htein Lin, 61, adding that after 40 years of government service his salary would now increase from $120 to $150 per month.

Khin Yee, a primary school teacher in Rangoon's North Okkalapa Township, who has worked in education for 30 years, also welcomed the latest salary increase. She complained, however, that teachers were coming under pressure from the Ministry of Education to end their practice of providing private tuition in their own time—a practice that offers many teachers a crucial source of extra income.

"Most of teachers depend on the tuition fees, which can more than double our salaries, but now they are not allowed to take on any more private students in the future," she said. "Actually, an extra 20,000 kyat is very little for teachers, because they can earn 20,000 kyat from [private tuition for] one student," Khin Yee added.

The post Thein Sein Plans $20 Salary Increase for Civil Servants, Pensioners appeared first on The Irrawaddy Magazine.

Embassy Warns Burmese to Avoid Protests in Bangkok

Posted: 08 Jan 2014 04:02 AM PST

Myanmar, Burma, The Irrawaddy,

Thai protesters demonstrate outside Government House in Bangkok on Dec. 9, 2013. (Photo: Steve Tickner / The Irrawaddy)

Burmese nationals who find themselves in Thailand over the coming days should take precautions to safeguard their personal security due to political tensions in the neighboring country, the Burmese Embassy in Bangkok warned this week.

The notice comes as the so-called People's Democratic Reform Committee (PDRC), an anti-Thai government group led by former Deputy Prime Minister Suthep Thaugsuban, plans a "Bangkok Shutdown" protest of mass rallies at 20 major locations in the Thai capital on Jan. 13.

The embassy also asked Burmese citizens to avoid political gatherings or protests before or on the PDRC's target date.

"Burmese people in Thailand are urged not to get involved in any mass protest and to keep themselves away from rally sites in order to maintain the Thailand-Myanmar good friendship status; for their security; and to avoid issues that would affect the goodwill between the two countries," the notice said on Monday.

A similar statement was issued by the Burmese Embassy in December of last year, amid growing anti-government protests in Thailand.

Meanwhile, the Thai-language website Daily News reported on Tuesday that Surapong Tovichakchaikul, Thailand's caretaker deputy prime minister and minister of foreign affairs, had asked his country's Ministry of Labor to keep tabs on migrant workers and prevent them from participating in any demonstrations.

Surapong reportedly said he issued the order out of concern for those workers' safety, adding that his government had made security arrangements for the Jan. 13 rallies.

A Burmese national living in Bangkok told The Irrawaddy that Burmese migrant workers would likely face transportation problems during the planned PDRC mass protest.

"Since 20 protest sites will be blocked, Burmese workers will find it difficult to move around on that day," he said. "Prices of basic foodstuffs have now gone up considerably."

He added that the rise in commodity prices would likely cause hardships for the migrant workers because their daily incomes had not kept pace with the rise in living expenses.

On the day the Burmese Embassy issued its warning, a Burmese man in Thailand was reportedly shot and received treatment at Ramathibodi Hospital in Bangkok.

The ongoing anti-government protests against the government of Prime Minister Yingluck Shinawatra began in early November, triggered by a proposed amnesty bill that would facilitate the return of her elder brother, former Prime Minister Thaksin Shinawatra. The bill was passed by the Pheu Thai Party-dominated House of Representatives on Nov. 1 but was rejected by the Senate on Nov. 11.

Thaksin has been in self-imposed exile since he was ousted by a military coup in 2006.

Many migrant workers reportedly participated in 2010 pro-Thaksin protests in Bangkok organized by his supporters, known as the Red Shirts. Thirteen Burmese migrant workers were arrested during those demonstrations.

The post Embassy Warns Burmese to Avoid Protests in Bangkok appeared first on The Irrawaddy Magazine.

New Alliance to Focus on National Interest, Avoid ‘Power Politics’

Posted: 08 Jan 2014 03:30 AM PST

Burma, Myanmar, politics, Federal Democracy Alliance

A Burmese election official displays a ballot paper during the parliamentary by-elections on April 1, 2012. (Photo: The Irrawaddy)

RANGOON — An alliance forged last month and including several of Burma's ethnic political parties says it will focus its efforts on national development rather than wade into the country's power politics.

The Federal Democracy Alliance announced Tuesday that the group will prioritize amending the 2008 Constitution to establish a federal system of governance for Burma; contributing to ongoing peace talks inside the country; and advancing a path for the country less dominated by its ethnic majority Burmans.

Another goal of the recently formed alliance will be to support small political parties' ability to compete against Burma's two biggest political parties, the National League for Democracy (NLD) and the ruling Union Solidarity and Development Party (USDP), in national elections slated for 2015. The alliance will not, its members insist, seek to challenge the overall predominance of the country's two main parties.

The FDA's objectives were made public following the alliance's first detailed discussions among the political parties involved, which were held on Tuesday.

Seven political parties have signed onto the alliance: the Democratic Party Myanmar, the Unity and Peace Party, the Karen Public Party, the Diversity and Peace Party, the Chin Progressive Party, the Democratic Party for New Society and the National Democratic Force.

Three other parties attended Tuesday's discussion and are considering joining the FDA, but have not yet officially committed. They are the Democracy and Peace Party, the Union Democracy Party and the United Democracy Party (Kachin State).

"We've had the idea since 2010 to form this kind of group, but we had been unable do that with disparate causes, but now there are about nine parties that have agreed to form this group," said Khin Maung Swe, chairman of the National Democratic Force.

The FDA coalition, which was announced on Dec. 18, is the latest creation in an increasingly complicated alphabet soup of political alliances, mergers and defections in Burma's nascent parliamentary democracy.

The chairman of the Democratic Party Myanmar, Thu Wai, said five former Nationalities Brotherhood Federation (NBF) member parties were ethnic minority-affiliated and had split from the Federated Union Party (FUP), an all-ethnic alliance originally comprised of 16 parties that was formed last year.

Thu Wai, whose party also recently left the NBF, said the FDA would not seek an antagonistic relationship with the FUP or the NBF.

"Ethnic parties from our former group [the NBF] are going to work with the Federal Union Party, but other ethnic parties are also interested in working with us. This group is not only for ethnic parties, but for all political parties that are interested in [the formation of] a federal union," he said.

"We will compete in the 2015 general election, though we will not put much emphasis on power politics, because we want to focus on the country's development," he said.

Saw Moe Myint, a central executive committee member of the Karen Public Party, said he was optimistic that the FDA could aid smaller ethnic political parties in the 2015 elections.

"If we participate in this group, one thing is, we need to separate each campaign constituency during the election," Saw Moe Myint said, referring to a need to ensure the alliance was putting forward candidates in line with a given constituency's ethnic composition. "But yes, it [the alliance] can be stronger than any one individual party."

A loosely formed "democracy alliance" of some 10 political parties, including five ethnic parties, supported candidates in national elections in 2010 and by-elections in 2012. That group, led by the NDF and the Democratic Party Myanmar, would later become the NBF, in 2012.

The post New Alliance to Focus on National Interest, Avoid 'Power Politics' appeared first on The Irrawaddy Magazine.

Chin Govt Allegedly Keeps Supporters Away From Suu Kyi Speech

Posted: 08 Jan 2014 03:05 AM PST

Suu Kyi listens to schoolchildren sing a song in Falam, Chin State, after holding a public meeting about constitutional reform on Wednesday. (Photo: Zarni Mann / The Irrawaddy)

FALAM, Chin State — Aung San Suu Kyi plans to complain after hearing accusations that the Chin State government forbade government staff members and students from attending her speech on Wednesday in the city of Falam.

"It's unjust," the visibly angry opposition leader said to a crowd of nearly 1,500 people, after an audience member made the allegation against the state government. "It's against the law. I will complain about it to the state government."

Suu Kyi was in Falam on Wednesday as part of her first trip to Chin State in over a decade. She traveled to Tedim Township on Tuesday, where she addressed a crowd of over 5,000 people, and she will continue next to the state capital, Hakha.

Residents from Falam and surrounding villages flocked to hear her speak at an outdoor football field on Wednesday afternoon, despite freezing winter temperatures in the northwestern Burma state. In a 15-minute address, Suu Kyi continued to campaign for constitutional amendments, as she did in the Chin State town of Tedim on Tuesday.

The National League for Democracy (NLD) chairperson has made constitutional reform a priority since joining Parliament in 2012, as the current military-drafted charter prevents her from becoming president after the 2015 election.

Chin State is the poorest state in Burma, and Suu Kyi emphasized the need for development.

"To have a developed nation, we need equal development among states and divisions," she said. "If states are left behind, the country won't be developed. The government should keep in touch with ethnic people to learn what they need."

She added that development would also be necessary to improve education in the state. While schools across the country face limited resources and teaching staff, those in remote Chin State are especially struggling to accommodate the needs of students.

Suu Kyi said it was the government's responsibility to offer more resources for education, but added that she would help provide a local middle school with a generator and stationary through the Daw Khin Kyi Foundation, a charity that she founded in memory of her late mother.

When asked about deforestation around Reed Lake in the Falam area, she said she would tackle the issue as soon as possible after returning to Rangoon.

The post Chin Govt Allegedly Keeps Supporters Away From Suu Kyi Speech appeared first on The Irrawaddy Magazine.

89 Dockworkers Return From Malaysia After Brawl

Posted: 08 Jan 2014 02:11 AM PST

In September, several hundred Burmese migrant workers also returned from Malaysia. (Photo: Jpaing / The Irrawaddy)

The Burma Embassy in Malaysia said 89 Burmese migrant laborers working in a shipyard in Miri, Borneo, are being repatriated this week, after they recently became embroiled in a fight with their fellow Indonesian dockworkers.

Labor attaché Soe Win said 20 people will fly back to Rangoon on Wednesday evening, while 69 others already returned on Tuesday.

He said the embassy had facilitated talks between the shipyard company and Malaysian authorities in order to allow for the men's return. "Not all workers have completed their two or three-year contract periods, only five people have finished their terms… but we managed to solve it," said Soe Win.

On Dec. 23, a fight broke out between two Burmese workers and their Indonesian colleagues. Tensions between Burmese and Indonesian workers boiled over and hundreds of Indonesian workers reportedly burned down the dormitory of the Burmese employees.

Since then, the employer has let the Burmese men stay inside a factory building for their safety as they were afraid to stay in their hostels, according to Soe Win.

The workers and the Malaysian employers reported the incident to the local police but Indonesian workers left the shipyard shortly after the fight. "They are unlikely to lay charges, as they [Indonesian workers] already returned to their own countries, as have our nationals," said Soe Win.

An estimated 250,000 Burmese nationals are believed to be working in Malaysia, often taking low-paid jobs, including at restaurants and construction sites, with help from recruitment agencies. About 110,000 Burmese nationals in the country lack proper legal documentation, Burma's Ministry of Labor said in September 2013.

The Burma Embassy regularly intervenes in labor disputes, or cases involving migrant workers lacking proper documentation, the latter are often rounded up in recurrent Malaysian crackdowns on migrants.

Last year, several thousand Burmese workers returned home with the help of the embassy following such a crackdown in September. An outbreak of deadly clashes between Burmese Buddhists and Muslim migrants in Kuala Lumpur in June also caused many workers to seek repatriation.

The post 89 Dockworkers Return From Malaysia After Brawl appeared first on The Irrawaddy Magazine.

Suu Kyi Brings Constitutional Talk to Chin State

Posted: 07 Jan 2014 10:52 PM PST

Opposition leader Aung San Suu Kyi addresses a crowd of thousands of supporters in the town of Tedim, Chin State, on Tuesday. (Photo: Zarni Mann / The Irrawaddy)

TEDIM, Chin State — Opposition leader Aung San Suu Kyi arrived in Burma's poorest state on Tuesday for the first time in over a decade to promote constitutional reform.

In a continuation of her focus on changes to the 2008 charter, which prevents her from becoming president in 2015, the National League for Democracy (NLD) chairperson asked thousands of local people in the town of Tedim, Chin State, on Tuesday whether they were in favor amendments. Nearly everyone in the crowd raised their hand in support, while others called for a complete rewrite of the document.

Suu Kyi met with over 5,000 local residents in Tedim Township, her first stop in Chin State. She will continue on to the city of Falam and the state capital Hakha on Wednesday.

"The agreement of the military is important to amend the Constitution. That's why we need to convince them. The situation of the Constitution is dividing the military and the people," she said.

"If the military accepts the desire of the public to amend the Constitution, the change for the country will be easy. That's why the people must show their desire to amend the Constitution."

The speech in Tedim followed an earlier statement by Suu Kyi on Saturday, the country's Independence Day, about the need for military participation in constitutional reform.

The 2008 charter is widely seen as undemocratic in Burma because it was drafted by the former military junta and pushed through in a referendum that has been criticized as rigged. It reserves 25 percent of seats in the legislature for military representatives, and prevents Suu Kyi from becoming president because she has family members who are foreign nationals.

The Nobel Peace Prize laureate has emphasized the need for military support because more than 75 percent of lawmakers are required to approve amendments.

Suu Kyi urged the people of Chin State to study the Constitution themselves, to identify areas which they believe are undemocratic.

A parliamentary committee has been formed to review the Constitution and consider amendments, with political parties and members of the public submitting recommendations.

President Thein Sein said last week that the military had also submitted recommendations, but he did not elaborate as to the nature of the proposals.

The post Suu Kyi Brings Constitutional Talk to Chin State appeared first on The Irrawaddy Magazine.

China-Japan ‘Voldemort’ Attacks Up Ante in Propaganda War

Posted: 07 Jan 2014 10:07 PM PST

Japan, China, Yasukuni Shrine, Lord Voldemort, Harry Potter, Shinzo Abe, Liu Xiaoming

Japan's Prime Minister Shinzo Abe, right, is led by a shinto priest as he pays a customary New Year's visit at Ise shrine in Ise, central Japan, in this photo taken by Kyodo on Monday. Abe's Dec. 26 visit to Tokyo’s Yasukuni Shrine, where Japanese leaders convicted as war criminals are enshrined along with other war dead, infuriated China and South Korea. (Photo: Reuters / Kyodo)

BEIJING — China lambasted Japan on Tuesday for comparing it to Lord Voldemort, the villain in the Harry Potter stories, after both countries used the character to describe each other in a tit-for-tat diplomatic spat.

Japanese Prime Minister Shinzo Abe's Dec. 26 visit to Tokyo's Yasukuni Shrine, where Japanese leaders convicted as war criminals are enshrined along with other war dead, infuriated China and South Korea and prompted concern from the United States, a key ally.

Both China and Korea suffered under brutal Japanese rule, with parts of China occupied in the 1930s and Korea colonized from 1910 to 1945.

In an op-ed in Britain's Daily Telegraph, the Chinese ambassador to Britain, Liu Xiaoming, wrote last week: "If militarism is like the haunting Voldemort of Japan, the Yasukuni shrine in Tokyo is a kind of horcrux, representing the darkest parts of that nation's soul."

In British author J.K. Rowling's best-selling series Harry Potter, Voldemort uses horcruxes to hold bits of his soul and extend his life.

Liu's commentary was followed by another published on Sunday by his Japanese counterpart, Keiichi Hayashi, in the same newspaper, headlined: "China risks becoming Asia's Voldemort."

Chinese foreign ministry spokeswoman Hua Chunying called Hayashi's remarks "ignorant, irrational and arrogant."

"I would like to point out that, to Asia and countries in other regions of the world, militaristic invasion is the darkest devil in the history of Japan," Hua said at a daily news briefing, according to a transcript posted on the foreign ministry's website.

The Global Times, an influential tabloid owned by the Chinese Communist Party mouthpiece, the People's Daily, said the "Sino-Japanese war of public opinion is facing an escalation on all fronts."

"Japan's state apparatus has very strong capacity in public opinion warfare. They will mobilise various media forces of their country, create a leverage to lever world opinions, their goal to cleverly mask the malignant nature of Abe's visit to the Yasukuni Shrine," the newspaper said in a commentary.

"We need to make our demands simple and clear, that is, the Japanese prime minister cannot visit the war criminals in Yasukuni because it is equivalent to paying homage to criminals like Hitler and Goebbels," the newspaper said, referring to the leaders of Nazi Germany.

Chinese Internet users were unimpressed with the latest feud.

"Two ancient civilized countries in East Asia have become two children quarreling and fighting with each other," said a microblogger.

"Five thousand years of traditional virtues have been turned into this?" wrote another microblogger.

The post China-Japan 'Voldemort' Attacks Up Ante in Propaganda War appeared first on The Irrawaddy Magazine.

Thai Anti-Graft Body Says 308 MPs Acted Illegally

Posted: 07 Jan 2014 09:47 PM PST

Thailand, elections, democracy, politics, civil unrest

A Thai court ruled that 308 lawmakers of Prime Minister Yingluck Shinawatra's Pheu Thai party acted illegally. (Photo: Reuters / Chaiwat Subprasom)

BANGKOK — Thailand’s state anti-corruption body ruled Tuesday that 308 pro-government lawmakers acted illegally in seeking to pass a bill to make Parliament’s upper house an all-elected body.

The ruling by the National Anti-Corruption Commission will lead to a further investigation of the lawmakers, and could eventually result in their being banned from politics.

The commission did not explain its ruling. A separate Constitutional Court earlier ruled that the lawmakers acted illegally by violating legislative procedures and threatening to weaken the system of administrative checks and balances.

The commission’s ruling adds a new element of instability to Thai politics, which have been roiled by a sometimes-violent power struggle between supporters and opponents of former Prime Minister Thaksin Shinawatra, who was ousted by a military coup in 2006 after being accused of corruption and abuse of power. Thaksin, a billionaire tycoon, is in self-imposed exile to avoid serving a two-year jail term for corruption.

Anti-government demonstrators have been conducting street protests since November against Prime Minister Yingluck Shinawatra, Thaksin’s sister, who dissolved Parliament in early December and called new polls for Feb. 2. Now a caretaker prime minister, she was one of several dozen lawmakers the commission said did not act improperly because their actions did not give a clear "appearance of wrongdoing."

Because of the large number of people involved, the commission is unlikely to be able to take further action before the scheduled polls. However, if it affirms the guilt of the 308 lawmakers, those who are re-elected could be suspended from their jobs, and further legal action by a court could ban them from political office.

The anti-government protesters are demanding that no election be held until an appointed government institutes political reforms, which could take as long as two years. They say Thaksin’s wealth gives him an unbeatable political advantage, so changes are needed to end corruption and money politics.

The opposition Democrat Party, closely allied with the protest movement, is boycotting the polls. Yingluck’s Pheu Thai party says the Democrats could not win even if they choose to campaign. Parties affiliated with Thaksin have won every national election since 2001.

The protesters have vowed to "shut down" Bangkok this coming Monday by blocking key intersections in the capital.

The group has already temporarily occupied government office compounds and attempted to stop election candidates from registering.

Yingluck’s government faces several other legal challenges that could dislodge it, and also faces the possible threat of a coup. The army has declared its neutrality, but has been reluctant to help police protect government agencies against the protesters.

Yingluck told reporters Tuesday that people should not worry about widespread coup rumors. She said that in her concurrent position of defense minister, she believes "the military commanders will think of long-term solutions rather than employing various measures unacceptable to many countries."

The United States and other allies have urged that Thailand proceed with democratic change through elections.

The post Thai Anti-Graft Body Says 308 MPs Acted Illegally appeared first on The Irrawaddy Magazine.

Bangladesh Election Unrest Squeezes Key Garment Sector

Posted: 07 Jan 2014 09:31 PM PST

Activists of Bangladesh Jamaat-E-Islami set fire to an office of ruling party Bangladesh Awami League during a clash in Narayanganj on Jan. 5, 2014. (Photo: Reuters)

DHAKA — On the outskirts of Dhaka, Babylon Garments has shortened work shifts to eight hours from the usual 10 and plans to shutter production lines as months of election-related violence disrupts transport and prompts global retailers to curb orders.

The company, which supplies shirts, trousers and other apparel for global retailers including Wal-Mart Inc, is one of the biggest players in Bangladesh's US$22 billion garment industry that has seen orders cut nearly in half in the last three months—the worst drop in two decades, according to the Bangladesh Garment Manufacturers & Exporters Association (BGMEA).

"December is usually a season when we are packed with orders to a point where we can't take any more but look at this year—it's a completely different story," said Muhammad Saiful Hoque, assistant general manager of Babylon Garments, as workers sewed checked shirts for British-based Tesco Plc.

Industry officials say the unrest in the run-up to Sunday's disputed election has been worse for business than the April collapse of Rana Plaza, an illegally built factory in which more than 1,100 workers were killed in a disaster that prompted calls for safer working conditions and more accountability on the part of the global retailers that buy Bangladesh's clothing exports.

The disruption to Bangladesh's garment industry, the world's second biggest after China, as well as a shutdown by striking garment workers in Cambodia, another big supplier, means global retailers face a supply squeeze.

Garment orders are typically placed at least three months in advance.

"The impact won't be immediately felt but the delay in shipping finished orders will hurt the global retail market around June," said Shahidullah Azim, vice president of the BGMEA, which says up to $1 billion in orders are at risk in the coming weeks if the situation does not improve.

A Wal-Mart spokesman said the country sources from more than 70 countries, which allows it to plan for any potential supply chain interruptions. He said he was not aware of any issues related to developments in Bangladesh and Cambodia.

Michael J. Silverstein, a senior partner with the Boston Consulting Group based in Chicago, said Bangladesh is a critical supplier of clothing for world markets and too large to replace.

"The majority of the customers believe Bangladesh will not go dark, for example stop shipping," he said. "They do believe there will be delays and a need for alternative supplies."

Bangladesh's garment industry accounts for 80 percent of the country's exports and is so important to the economy that it has typically been spared from the political unrest that periodically racks the South Asian nation, even though many textile tycoons are politically active.

Several factory owners are members of parliament, representing either the ruling Awami League or the opposition Bangladesh Nationalist Party (BNP), which boycotted the poll in protest at Prime Minister Sheikh Hasina's refusal to hand power to a neutral caretaker government to oversee the vote.

More than 100 people were killed in clashes ahead of the election, with the unrest accompanied by roadblocks that have pushed up transport costs by 10 to 20 percent, according to the BGMEA—a worry for an industry that operates on wafer-thin margins and needs to keep costs low to be competitive.

The unrest had shown no signs of abating since Sunday's poll, with seven people killed in further violence on Monday and one reported death on Tuesday, during a 48-hour strike called by the opposition after the poll.

AKH Group, a large supplier that produces for H&M Hennes & Mauritz AB, Marks & Spencer Plc and Fast Retailing's Uniqlo, said it was becoming nearly impossible to meet delivery commitments.

"Trucks are stuck on the roads for days and there is very little you can do about it other than somehow pay through the roof to get them going," AKH Group's Deputy Managing Director Abul Kashem said.

Some shipments are costing the company as much as 1 million taka ($13,000), compared with the 20,000-30,000 taka it usually takes to send the same truckloads, as transport costs have surged due to roadblocks across the country, Kashem said.

Buyers have cut orders by 25 percent on average and H&M, one of AKH's biggest clients, has cut its orders by 30 percent, he said. H&M, however, said it had not cut orders with AKH by 30 percent, and so far has not been affected by the unrest.

The reason for the discrepancy was not immediately clear, although supply chains in Bangladesh are often complex, involving a series of buyers and middlemen.

Analysts at Morningstar said in a note that H&M had protected itself well from potential disruptions by using a large number of manufacturers and ordering in small batches.

A Marks & Spencer said the British high street stalwart was closely watching the situation in Bangladesh and Cambodia, but had not reduced orders and at this stage did not anticipate any effect on supplies. A Uniqlo spokesman said the company had not reduced production or orders from Bangladesh.

Lost Orders

Neighboring India has taken most of the orders that have been lost, while the rest have gone to Pakistan and China, according to data from the BGMEA.

"Rana Plaza dealt a heavy blow to the reputation of this country but that still didn't impact the confidence of buyers and inflow of orders the way the recent crisis has," said Babylon's Hoque.

Babylon's production of shirts fell to 750,000 pieces in December from 850,000 in the same period last year, and was expected to fall below 700,000 by February due to the lack of demand, he said.

Of the 12 large retailers Babylon supplies, seven or eight were placing orders in reduced quantities, while the rest have completely stopped, he said.

If deliveries are late, the supplier must pay compensation, said Rubana Huq, managing director of Mohammadi Group, which supplies Wal-Mart, H&M, Inditex's Zara and others.

"I have just paid 12,000 euros [$16,000] to a client. Our goods were three weeks late. I couldn't afford not to," she said.

Inditex declined comment on the situation in Bangladesh.

With as much as half of capacity idle at big factories, small manufacturers who make up a third of the industry and largely rely on subcontracted orders from bigger suppliers are especially vulnerable.

Turja Apparel, a small garment factory in Dhaka, has no orders after Jan. 20 and owner Kazi Babul was not hopeful he would get new ones until the political situation stabilizes.

He said he may shutter his factory for now.

"Small factory owners have suffered heavily after the Rana Plaza collapse as no one wants to give us orders, and now the political situation has taken away the little that we were getting."

Additional reporting by Serajul Quadir in Dhaka, Phil Wahba in New York, Sophie Knight in Tokyo, James Davey in London and Emma Thomasson in Berlin.

The post Bangladesh Election Unrest Squeezes Key Garment Sector appeared first on The Irrawaddy Magazine.
Posted by at

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Subscribe to: Post Comments (Atom)