Saturday, July 11, 2015

The Irrawaddy Magazine

The Irrawaddy Magazine

NLD Commits to Contesting November Election

Posted: 11 Jul 2015 05:42 AM PDT

National League for Democracy (NLD) chairwoman Aung San Suu Kyi visits her constituents in Rangoon' Kawhmu Township on July 4, 2015, as part of a voter education drive by the opposition party ahead of Burma's general election. (Photo: JPaing / The Irrawaddy)

National League for Democracy (NLD) chairwoman Aung San Suu Kyi visits her constituents in Rangoon' Kawhmu Township on July 4, 2015, as part of a voter education drive by the opposition party ahead of Burma's general election. (Photo: JPaing / The Irrawaddy)

NAYPYIDAW — The Burmese opposition party led by Nobel laureate Aung San Suu Kyi announced Saturday it will contest the general election on Nov. 8, an effort that is expected to strongly challenge the ruling military-backed party.

"We will contest the election to continue implementing the democratic transition that has yet to be achieved," Suu Kyi told a news briefing in the capital Naypyidaw. She said the decision was made by her National League for Democracy's Central Committee at a meeting earlier in the day. The election date was fixed by the government on Wednesday.

Her party boycotted the 2010 polls because it considered election rules to be unfair. It took part in subsequent by-elections after changes were made, winning almost all seats it contested.

Burma was under military rule from 1962 until 2011, when the military-backed Union Solidarity and Development Party (USDP) took power. Critics say the military still is the ultimate power holder.

Suu Kyi's party has been seeking more changes in the Constitution. She has repeatedly said the election cannot be free or fair if the Constitution is not amended.

The Constitution was enacted during military rule, and gives the army a dominant say in the administration of the country. One clause mandates that 25 percent of the seats in Parliament be held by the military, ensuring it has veto power over constitutional amendments.

Another clause has the practical effect of barring Suu Kyi from becoming president. Parliament turned back recent efforts to change those two key rules.

The post NLD Commits to Contesting November Election appeared first on The Irrawaddy.

The Irrawaddy Business Roundup (July 11, 2015)

Posted: 10 Jul 2015 06:55 PM PDT

Dutch beer producer Heineken is reportedly set to officially open a new factory in Burma on Sunday. (Photo: Reuters)

Dutch beer producer Heineken is reportedly set to officially open a new factory in Burma on Sunday. (Photo: Reuters)

World Bank Says Burma Reaches 'Middle Income' Status

The World Bank has said that Burma is no longer a "low income" country, an announcement that has surprised many watching the country.

The bank said in a statement July 1 that its annual revision of global income brackets saw Burma—alongside Bangladesh, Kenya and Tajikistan—rise out of the lowest grouping of countries. Thirty-one countries, including Cambodia, Nepal and Afghanistan, are left in the low-income bracket—meaning their annual gross national income (GNI) remains at less than US$1,045 per person.

Burma has graduated to a "lower-middle income economy," the announcement said, a grouping that includes countries where GNI per capita is between $1,046 and $4,125.

World Bank chief economist and senior vice president Kaushik Basu said in the statement that the movement of countries out of low-income status was "heartening."

"While we need to measure development progress in different ways, income-based measures, such as GNI, remain the central yardstick for assessing economic performance," he said in the statement.

Burma remains on the lower end of the lower-middle income grouping, however, with the bank's latest figures, for 2014, suggesting that the size of the economy represents about $1,197 per person in Burma. The figure has received a boost since a census last year revealed that previous government estimates had been overstating the number of people living in the country, actually about 53.7 million.

The country has also seen rapid economic growth since the government of President Thein Sein introduced political and economic reforms beginning in 2012. In the last fiscal year, ending in March, the economy is thought to have grown by 8.5 percent.

A large chunk of that growth is likely down to an increase in offshore natural gas extraction, most of which is sent to Thailand and China under contracts signed by the previous military government. But while revenues from the extractive industries may boost the country's statistics, many people remain in poverty, especially in the remote regions inhabited mainly by ethnic minorities.

Sean Turnell, an economist at Sydney's Macquarie University, said he had doubts about the accuracy of figures on Burma's economy. Even if the country has graduated to the higher bracket, Turnell said in an email, "it would only be the product of meaningless statistical technicalities (made more so when we consider that the reduction in the official population size is a factor here too)."

"Myanmar is a rich country in terms of resources and potential. But it's people are overwhelmingly desperately poor—no less so today than yesterday, and before the day the World Bank changed its mind," Turnell added.

"Sometimes statistics cloak reality more than they reveal it."

Oil Price Slump Likely to Lead to Fall in Burma's Gas Output

A research firm has predicted that Burma's natural gas production will begin to fall after 2018 as the global slump in energy prices delays investment in the oil and gas sector.

Financial information service BMI Research said in an industry trend analysis on Monday that it had revised upward its estimate for Burma's gas production in the next two years. It credited the revision to new investment in the Andaman Sea's Yadana field, where French company Total is the lead operator.

"We expect additional production from the field to come online from 2015 onwards as engineering, procurement and construction contracts (EPCs) related to the expansion get fulfilled," it said.

"In October 2014, contracts to develop a wellhead platform for gas production at Badamyar—an adjacent project to Yadana—were signed between Total, Hyundai Heavy Industries and SapuraAcergy."

More gas from the Yadana field, as well as the ramping up of production from the Shwe and Zawtika offshore gas projects will push up total production to 23.5 billion cubic meters by 2017, compared with 19 billion cubic meters last year, BMI Research predicted.

However, production from existing fields is set to plateau, and the low global oil price means that companies will be less likely to pledge future investment to exploit Burma's oil and gas reserves.

That could impact plans to expand the Shwe and Zawtika fields, the analysis said, as well as dampening the prospect that any of the exploration deals signed this year—with major companies including Shell and Chevron—will lead to more production any time soon.

"[S]imilar to the low likelihood of further expansion of existing fields, we believe the weak oil price environment will also remain a hurdle for these projects to move into the development phase even if major oil and gas discoveries are made in the coming years," the analysis said.

Burmese-language App Company Lists in London

Burmese-language mobile chat application developer MySquar has reportedly raised $2.6 million to expand its products in Burma, despite currently lagging behind competitors.

MySquar's pitch is that its app MyChat was the first product offering a mobile text messaging service in Burmese. However, other similar apps like Viber—which claims to be the market leader with more than 5 million users—can also be used in Burmese, with users simply required to download Burmese-text software to their phones.

In information submitted to the London Stock Exchange—where MySquar has just listed on the Alternative Investment Market (AIM)—the company admits that almost half its total subscribers are not "active."

"As at 31 May 2015 there were approximately 392,400 monthly active users of MySQUAR products and 774,636 total users," the information said.

"The Group's strategy is to drive user acquisition through locally relevant products, acquire relevant consumer data and to monetise its assets through strategies including advertising, digital goods, eCommerce and other methods," MySquar's information submitted to the London bourse says.

"The Group intends to secure a firm footprint in the Myanmar youth market and to take advantage of commercial opportunities arising from the increasing internationalization of Myanmar and rising penetration of mobile technologies."

Website Deal Street Asia reported this week that the float at the start of this month successfully raised its target of $2.6 million, apparently justifying the valuation of the company of $27.8 million.

The company has offices in Burma and Vietnam, but is incorporated in the British Virgin Islands, an overseas territory of the UK that offers companies secrecy and tax benefits.

MySquar's major shareholders include investment entities Rising Dragon Singapore and Rising Dragon Holdings, as well as companies controlled by Japanese national Shinji Kumazawa and Taiwanese national Chu Chi-Chou—who holds shares personally and through companies Etech investment Holding Group Inc and Rising Dragon Technology Pte Limited.

Also of note is MySquar's chairman, Piers Pottinger, co-founder of Bell Pottinger, the UK's biggest public relations firm, which appointed a managing director for Burma earlier this year.

Burma Government Taking 'Big Gamble' on Airline Expansion

Burma's state-owned airline may struggle to compete on international routes, according to an industry report published following the announcement that Myanmar National Airlines plans to venture abroad.

MNA has been flying only domestic routes since Myanmar Airways International was spun off as an international carrier. The government has now completely divested from MAI.

But MNA said last month that following a corporatization effort, the company plans to begin flying international routes, beginning with the Yangon-Singapore link.

A report from CAPA Centre for Aviation this week described the move as a "big gamble" for the company and the Burmese government.

It said Burma-based airlines have so far struggled to dislodge major Singaporean players on the route since those airlines are able to offer flyers connections to countries outside of the region.

Local private airline Golden Myanmar Airways, and MNI, had already come across such difficulties on the Yangon-Singapore route and other international links, it said. GMA has stopped its flights to both Bangkok and Singapore after too many seats were left empty.

"Ultimately MNA will compete mainly against MAI, a predicament Golden Myanmar also faced during its year and a half in the Singapore market," the report said.

"Unfortunately for Myanmar's carriers this is virtually a zero sum game as this end of the market has not been growing. MAI and Golden Myanmar combined carried only slightly more passengers to and from Singapore in 2014 than MAI alone carried in 2012."

Foreign carriers have a major advantage as passengers can connect on to flights to the United States, Europe and elsewhere, while Burma's airlines only link to a few regional destinations, it said.

"The Myanmar government is taking a big gamble by investing heavily in MNA's international foray and expansion," the report said. "Perhaps the government is willing to increase subsidies of the flag carrier, hoping MNA will stimulate tourism and help raise the profile of Myanmar internationally.

"But there is good reason for the private airlines of Myanmar and foreign carriers that have pursued expansion in the Myanmar market to be irritated. MNA's ambitious expansion could distort the playing field in several markets, starting with the important Myanmar-Singapore route."

Heineken Looks to Challenge Burma's Beer Monopoly

Dutch beer producer Heineken is reportedly set to officially open a new factory in Burma on Sunday, as it enters the country's military-dominated grog sector.

A report in London's Financial Times this week said the factory, costing Heineken $60 million, would initially turn out 30 million liters of beer per year, with the potential to increase that to 100 million liters.

The report said Heineken would be launching a low-cost beer tailored for the Burmese market labeled "Regal Seven."

The Dutch brewer's entry follows Danish company Carlsberg opening a factory just two months ago.

But both companies must compete with the dominance of Myanmar Brewery, part of the military-controlled conglomerate Union of Myanmar Economic Holdings. The Financial Times said the company, which brews Myanmar beer as well as Tiger, currently holds an estimated 80 percent of the local beer market.

"Breaking into a market in which the incumbent is a state-owned monopoly is difficult and can be expensive," Javier Gonzalez Lastra, an analyst at German financial institution Berenberg told the Financial Times. "Heineken should be prepared to make losses initially, with a view to making money over the long term, because Myanmar has huge growth potential."

The post The Irrawaddy Business Roundup (July 11, 2015) appeared first on The Irrawaddy.

Dateline Irrawaddy: ‘When Will Burmese Football Reach Its Golden Age?’

Posted: 10 Jul 2015 06:27 PM PDT

On this week's edition of Dateline Irrawaddy, the panel discusses where Burmese football is headed following the under-23 team's strong showing at the Southeast Asia Games in Singapore. (Photos: The Irrawaddy)

On this week's edition of Dateline Irrawaddy, the panel discusses where Burmese football is headed following the under-23 team's strong showing at the Southeast Asia Games in Singapore. (Photos: The Irrawaddy)

On this week's edition of Dateline Irrawaddy, Burmese Editor Aye Chan Myae discusses where Burmese football is headed following the under-23 team's strong showing at the Southeast Asia Games in Singapore. Aye Chan Myae is joined by The Irrawaddy's Thalun Zaung Htet and Win Thu Moe, technical director with Yangon United FC.

Aye Chan Myae: Welcome to this week's Dateline Irrawaddy. This week, we'll discuss when Burma's football team will be able to reach its golden age, identify challenges and assess the role of governmental support. Ko Win Thu Moe, a technical director with Yangon United FC who also held the same position with the Mandalay Football Academy and The Irrawaddy's Burmese editor Thalun Zaung Htet will join me for the discussion. I am The Irrawaddy's Burmese Editor Aye Chan Myae.

Ko Win Thu Moe and Ko Thalun, as everyone knows, Burma's under-23 men's football team [which competed in the SEA Games in Singapore in June] brought high hopes to Burmese people across the world. Even though the team did not win gold, Burmese people were very satisfied with the under-23 team. Ko Win Thu Moe, what is your assessment of Burma's under-23 football team?

Win Thu Moe: People, including football fans, didn't know much about the under-23 team before the SEA Games. And even in football circles, they did not expect the team to have performed that well. The team was a dark horse. Everyone was paying attention to the under-20 football team which would be competing in the U-20 World Cup. Since U Kyi Lwin [under-23 football team coach] is the head coach of Magway FC in the Myanmar National League (MNL), he has played against every team and knows which players are good. So, he could choose the right players. He did not get enough time, but he prepared the best he could. This is the main reason why the team notched up victories. Had a foreign coach, or someone who didn't know the players, been assigned to coach the team, it would have been quite difficult for the team to perform like that. It is fair to say that the team had a nice blend.

ACM: Watching the under-23 team's matches, we hoped as fans that Burma's football would have a bright future, because of their teamwork and the fact that there was greater support from the people than expected. Ko Thalun, what do you think?

Thalun Zaung Htet: I supported the team. All the fans have constantly given strong support for football. But this time, there were more supporters as well as new supporters, because of the internet. When there was a football match featuring the Burma under-23 team, Facebook users wrote "let's support our team" on their pages. The competition was held in Singapore, but Burmese people in both Singapore and Burma gave ardent support to the team. The support of people is encouraging. I think this kind of support will serve as a driving force for the future of Burmese football.

ACM: All Burmese football fans witnessed the performance of the players of the under-23 team. They heartily welcomed the team at the airport as they arrived back from Singapore. Ko Win Thu Moe, do you know any plans for the future of Burmese football as you are a technical director now and you also used to be a technical director at Mandalay Football Academy?

WTM: This year is a tough year for the Myanmar Football Federation (MFF). They have to select three teams—the national team to compete in World Cup qualifiers, another one for SEA Games and also for the under-20. Previously, we were only able to field two teams at most, but this time had to field three teams at the same time. Players such as Kyaw Ko Ko, Kyi Linn and Yan Aung Kyaw were selected for the national team. Some of them are still young enough to play in the SEA Games, but were selected for the national team. The under-20 squad was made based on the under-19 team which won their under-20 qualifier with only one or two players changed. The under-23 squad was comprised of unknown but talented players in the MNL. The national football team is not very good. Everyone knows that. But the generation has changed. When the national team retires, the under-23 team will take its place and the under-20s will take the place of the under-23s. It is about how many football teams of younger generations there are. As far as I know, the under-18 football team is formed and coached by Ko Than Htike. That team competed in under-16 international and local competitions for around two years. It is playing in MNL-2 now. One more team should be formed with players from MNL-2. At present the under-15 team is competing in the Mekong Cup in Japan. There are two younger teams—under-14 and under-13—being trained at Mandalay Football Academy. The MFF is nurturing these players to ensure a constant supply of footballers. Likewise, football clubs have formed football teams of younger players. It is necessary to turn out footballers constantly. Considering the population of our country, the number of football teams is small.

ACM: When we were young, football was greatly supported at schools. There were football competitions at ward and township levels. But now, there are no such competitions. And again, as you know Ko Thalun, football pitches are seized and used for commercial purposes. Would you tell me about this, Ko Thalun?

TZH: In fact, [success in] sports depends largely on the country's leaders. They offered words of encouragement only when the team reached the final in the SEA Games. Beyond that, if they had constantly turned out [footballers], it would have developed a lot. Burmese football fans ask this question—when will Burmese football reach its golden age? This is the question they always ask. And sports commentators say football is largely related to politics. The leaders of the country should have nurtured [footballers] with a clear aim. But now, we see football pitches with signboards reading "playing football prohibited" everywhere. Football pitches are exploited for commercial purposes; one of the most significant examples: a garden in South Okkalapa Township was confiscated by the Union Solidarity and Development Party and measures are underway to turn it into a condominium. To turn out strong footballers, bodies and parties that are leading the country should have thought about building football pitches for every ward and school. The things that they have done without considering [the consequences] have had impacts on sports. As Ko Win Thu Moe said, we need to do long-term planning. The under-23 team deserves our due credit for it could do that much with little support. All the leaders of the country including the president and the army chief need to change their mindset, I think.

WTM: It is fair to say that it is the fault of concerned ministries that gardens and pitches are grabbed. The Yangon City Development Committee should have plans about gardens and playgrounds. Likewise, in case of erecting new buildings in schools, if concerned school principals, education officers and ministries had sports awareness, they would not allow new buildings to be built on playgrounds. Instead, for example, they could have a two-storey building built into a three-storey one, avoiding encroaching on the playground. If policymakers had sports awareness, we would not have to lose playgrounds. But we have lost many now as they do not have sports awareness. As far as I am concerned, the Sports Ministry has more than 400 pitches nationwide including more than 200 pitches with 400-meter running tracks. Those pitches should be maintained regularly. Respective township [authorities] should maintain their pitches. And they should also set out timetables for children, selected teams and clubs to use the pitch. Football will thrive when the entire country plays it. But now, policymakers themselves do not have sports awareness and there have been resultant consequences, I think.

ACM: Sports should be given proper support because only when it develops will the health, education and the morality of the children, who are the future of our country, also develop. As the football federation is nurturing football teams of different ages for a continuous supply of footballers, there is hope for the country, I think. Probably Ko Win Thu Moe will be able to answer the question of when Burmese football will reach its golden age.

WTM: To answer this question, we need to draw a comparison with other countries. For example, we are not in a position to beat Thailand. Why? Because there are so many football pitches and trainers in Thailand. Schools there encourage and create chances for students to play football. If we want to beat Thailand, we need to take a look into what it is doing and amend our weak points. Likewise, if we want to win against Japan, we need to take at look at what it is doing and do better than that. We need to go level by level—ASEAN level, Asia level and the international level. Even in ASEAN, it is quite difficult for us to beat Vietnam and Thailand. In the SEA Games, we won [against Vietnam], but it would be difficult to beat the national team. Likewise, we are not sure we can definitely beat Malaysia and Indonesia. At present, we are weak without pitches, support and the recognition of the government. We need to check what our football giant neighbors are doing and we need to do better than that. If we want to reach Asia's level, we need to take cues from Asian football giants. The Myanmar Football Federation or Yangon United FC alone is not enough. The government must grant funds and reclaim pitches. It is very easy to reclaim pitches now. In Japan, almost all the pitches in the entire country are turf. Here, if only the government is willing, it can create turf pitches which can be used in any weather and at any time. If only it is willing to allocate the budget for this… Given existing players and existing teams, Burmese football can't reach its golden age. Only when [policymakers] adopt a clear long-term plan and do better than football-developed countries, will Burmese football be able to reach its golden age.

ACM: Setting aside the question of when Burmese football can reach its golden age, and drawing conclusions from our discussion, we have promising players, but then in principle, the support of policymakers plays an important part, I would say. Thank you.

The post Dateline Irrawaddy: 'When Will Burmese Football Reach Its Golden Age?' appeared first on The Irrawaddy.

Speaking Out Against the Shwedagon Highrise Projects

Posted: 10 Jul 2015 06:11 PM PDT

Workers clear away Dagon City billboards and lighting surrounding the former Marga project on July 9, 2015. (Photo: Steve Tickner / The Irrawaddy)

Workers clear away Dagon City billboards and lighting surrounding the former Marga project on July 9, 2015. (Photo: Steve Tickner / The Irrawaddy)

The president's decision on Tuesday evening to terminate the controversial highrise projects near Shwedagon, the country's most well-known and revered pagoda, offered a degree of relief for many Burmese who treasure their cultural and historical heritage.

Our newsroom felt even greater relief—because we have a story behind the headlines.

On one late afternoon in April this year, our Irrawaddy office in Rangoon received a phone call from a public relations company affiliated with Marga Landmark, the international firm behind the high-profile Dagon City 1 project, a US$300 million joint venture with local partner Thukha Yadana.

The PR company employee informed The Irrawaddy that Marga Landamark was preparing a lawsuit against one of our reporters who continuously covered the five controversial projects which critics argue would have blocked sightlines to the sacred Shwedagon Pagoda.

The caller said the stories published in The Irrawaddy had damaged the company's image.

Kyaw Zwa Moe is editor (English Edition) of the Irrawaddy magazine. He can be reached at kyawzwa@irrawaddy.org.

Kyaw Zwa Moe is editor (English Edition) of
the Irrawaddy magazine. He can be reached at kyawzwa@irrawaddy.org.

We attempted to obtain more information on the pending lawsuit but the PR company declined. We had planned to write a story on the lawsuit but needed more details. Failing that, we decided to wait for an official letter from the company.

The Irrawaddy was one of few publications that extensively covered the five controversial projects. We were dedicated to this issue as we feel a shared responsibility to preserve our cultural, historical and spiritual heritage.

In this case, President Thein Sein deserves acknowledgement for making a rare decision in line with public sentiment, including the views of experts and Buddhist monks, to stop the construction proceeding.

Since early January, The Irrawaddy has published more than two dozen stories on the controversial projects online and in print publications. Many local publications covered the issue but coverage in the international press was somewhat rarer.

Many stories centered on Dagon City 1, as it was the project most visibly progressing, with the company opening a showroom and selling apartment spaces.

In fact, the more than 70 acre site on which all five projects were due to launch is land that belongs to the military. Thukha Yadana was awarded the 51.73-acre site for the Dagon City project in an open tender by the Ministry of Defence's Quartermaster General's Office in 2013.

Three other companies also won tenders to develop the site, Shwe Taung Development Company, Adventure Myanmar Tour & Incentives Company, and Marga Landmark.

It seemed our extensive coverage was not appreciated by the latter company.

Following the threat to sue, we had long discussions in our newsroom whenever we would report on the development projects. The company rarely responded to our subsequent enquiries, or was slow in doing so.

On May 9, Marga Landmark released a statement:

"The recent false rumors and wrong information about Dagon City One made on public channels by an individual in his own capacity have stirred up considerable doubts amongst the public and our customers on the good reputation of Marga Landmark and Dagon City One," the statement read.

"The Board of Directors of Marga Landmark is prepared to take legal action against this individual who has repeatedly made very personal defaming comments with inaccurate information and prejudiced views on Dagon City One…"

There was nothing factually wrong with our stories. We were simply reporting on an issue with significant cultural, historical and spiritual implications and upholding our responsibilities as journalists.

For a time, there was little public outcry on the issue, although a group of experts, architects and conservations sent an open letter to the president requesting that he reconsider the high-rise projects.

In mid-May, a groups of experts under the name, the Association of Myanmar Architects, held the "Save Shwedagon" forum and released a statement warning that the pagoda was in urgent need of protection and that its durability would be at risk if the developments nearby were not properly managed.

The experts unanimously urged the government to exercise caution in granting permission for developments in the historically significant area around the pagoda.

Hlaing Maw Oo, an architect and director from the Ministry of Construction, said during the forum that high-rise buildings near the pagoda risked "visual pollution."

"From an urban design point of view, it's unacceptable. The more visual pollution we have, the faster we will lose the view of the great pagoda for the next generation," she said.

We couldn't agree more.

On July 8, the morning after the government canceled the five planned projects, state-run newspaper the Global New Light of Myanmar reported: "The government also does not want to damage the religious edifices and cultural heritages including the Shwedagon Pagoda for development and held negotiations with the companies to cancel the projects."

The government's actions in this case are welcome. But in future, it should avoid similar mistakes by committing to prior due diligence, consultation and negotiation and aspiring to find the right balance between conservation and development.

The post Speaking Out Against the Shwedagon Highrise Projects appeared first on The Irrawaddy.
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