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| The Irrawaddy Business Roundup (Oct. 31, 2015) Posted: 30 Oct 2015 08:22 PM PDT  A man polishes a piece of jade at the Jade market in Mandalay November 29, 2011. (Photo: Reuters) Global Witness Says Burma's Biggest Bank a Major Player in Jade Trade UK-based advocacy organization Global Witness said it believes that Burma's largest private bank, Kanbawza Bank (KBZ), plays a larger role in the country's murky jade trade than it publicly discloses. The organization said it unearthed links between a major jade-mining company and the bank's recently established insurance arm, IKBZ. Global Witness on Oct. 23 published a lengthy report based on more than a year of investigations into the jade trade. The report gives a glimpse into the scale of profits being made from the jade industry by players including Burma's former dictator, Sen-Gen Than Shwe, the Burmese military and a number of well-connected tycoons. But the report also contains information about the links between KBZ Group, which is owned by tycoon Aung Ko Win and his family, and the extraction of jade from the Hpakant region of conflict-torn Kachin State. The bank has in the past won plaudits for its transparency efforts and as one of the country's top taxpayers. "KBZ has a dedicated jade mining subsidiary, but in meetings and correspondence with Global Witness has stressed that it plays only a small part in the industry," the Global Witness report said. "According to a leading economic analyst, KBZ's bank is now around three times larger than its nearest private sector rival. What is it doing that its competitors are not? Does jade provide part of the answer and, if so, where and whom is it coming from?" While the report does not accuse KBZ of wrongdoing, it sets out numerous links to one of the most significant jade-mining groups, Ever Winner. A network of 12 linked firms, Ever Winner made sales at Burma's official jade emporiums of more than $120 million in 2013 and $190 million the following year. The Global Witness report claims that the man at the top of the Ever Winner group, Aike Htwe, is closely tied to KBZ boss Aung Ko Win. Further, the group establishes a link between Aike Htwe and IKBZ, an ambitious venture that the group hopes will become a major player in Burma's nascent private insurance industry. "KBZ denies that Aung Ko Win is a beneficial owner of Ever Winner but confirms what company records show: that Aike Htwe's daughters are directors and shareholders of its new insurance company, IKBZ," it said. "IKBZ's other directors and shareholders are Aung Ko Win, his wife and their two daughters. KBZ says that Aike Htwe is not a beneficial owner of the insurer. However Aike Htwe's daughter informed Global Witness that he is, in fact, an investor in IKBZ." According to Global Witness, KBZ advisors have indicated that a review may take place of the group's mining interests, suggesting that more disclosure about its links to the jade industry may be forthcoming. "Global Witness believes that if KBZ wants to live up to its rhetoric on transparency it needs to go much further and faster, however," it added. In a response reported in the Myanmar Times newspaper, KBZ Group senior managing director Nyo Myint defended the company, insisting that KBZ had always been clear that jade was a "prime legal source of income." "This is not a secret, since from the beginning we publicised where our business comes from," he said, according to the Myanmar Times. "We regard the [Global Witness] report as being for the good of the country. KBZ will continue to collaborate with Global Witness to upgrade the standard of the mining industry in Myanmar," he added. Burma No Longer the World's Worst for Starting a Business: World Bank The World Bank has recognized the Burmese government's efforts to reform the system of setting up a business in the country. In the bank's latest edition of its annual ranking on the ease of doing business, it said the country climbed to 160th, up from last place out of 189 countries, on the measure. The ranking is contained within the report Doing Business 2016: Measuring Regulatory Quality and Efficiency, which ranks countries by how easy it is for companies to conduct business there. Overall, Burma was ranked 167 out of 189 countries, a climb of 10 places on the previous year. That improvement included modest rises in the rankings on "dealing with construction permits" and "getting electricity," but was largely accounted for by reforms to the way in which businesses are established in Burma. The World Bank said in an accompanying statement that governments across the Asia-Pacific region were improving their procedures for starting businesses, but highlighted the particular improvement by Burma. "The highest number of reforms recorded in the past year was in the area of Starting a Business," it said. "Myanmar made the most improvement globally by eliminating the minimum capital requirement for local companies and by streamlining incorporation procedures, helping small enterprises save valuable time and resources." The report said that the Directorate of Investment and Company Administration was now completing most of the processes required to set up a company within one day, and that many of the charges that previously made setting up a business expensive had been dropped. However, Burma remains one of the worst countries in the world in a number of the fields included in the rankings. The country actually dropped in the rankings in terms of "getting credit" (now 174th place), while it continues to struggle with "protecting minority investors" (184th), "enforcing contracts" (187th) and "resolving insolvency" (162nd), according to the rankings. Makro Could Come to Burma Under Thai Operator Cash-and-carry chain Makro could soon enter the Burmese market, according to a report citing interest in a move from the brand's Thai operator, Siam Macro Plc. The Bangkok Post said the company, which is part of the sprawling Thai conglomerate Charoen Pokphan (CP) Group, had already conducted a feasibility study on the Burmese market, citing CEO Suchada Ithijarukul. "Siam Makro is studying Myanmar consumer behaviour and foreign investment laws. If the regulations are clear, it is ready to open its first store immediately," the report said, adding that Siam Makro had also met with the Thai ambassador to Burma for advice. The report said Makro was looking to capitalize on the changes in Burma's retail landscape since the government initiated liberalizing reforms. It quoted Suchada saying that the company would look for success in Burma with its "various store types," and said that increasing numbers of foreign visitors to the country would also be a boon for the retailer. "The boom of tourism in Myanmar is also an opportunity for Makro," she was quoted saying. Burmese App Raises $200,000 in Seed Funding Burmese mobile application Momolay has reportedly raised $200,000 in seed funding as it tries to establish itself as a news and entertainment platform to compete with Facebook among Burmese mobile users. The website Tech in Asia interviewed Momolay founder Lin Myat, who said the app had been downloaded almost 340,000 times on Android devices since its launch in February. The app claims more than 100,000 active monthly users. "Momolay is basically a 9Gag and Buzzfeed hybrid," Tech in Asia said, referring respectively to a user-generated content platform and the news website infamous for its "listicles." "[Momolay's] mission: to provide a source of entertainment and social news other than Facebook." According to Lin Myat, Momolay has recently raised $200,000 in seed funding from Singapore-based investors that will go toward growing its team and building partnerships with other content publishers. "The funding the company raised brings its valuation to US$1.2 million, and gives it a year of runway to get to the next growth stage," Tech in Asia said. Lin Myat told the website that his team was working on a way to monetize its early success. "We are now experimenting on how we can best find revenue for our partnered publishers and ourselves," he was quoted saying. "We currently don't have much revenue apart from a few hundreds dollars a month we get from Facebook native ads." Sri Lankan Bank Opens Representative Office in Rangoon Colombo-based Sampath Bank earlier this month opened a representative office in Rangoon, its first foray outside of Sri Lanka, according to a statement. The new office was opened on Oct. 7 in the Novotel Hotel Max after the bank obtained a license from Burma's central bank. While the representative office does not allow Sampath Bank to conduct lending activity in Burma, it is the first step toward entering the country's banking sector. Nine other foreign banks have already been granted with licenses giving them permission to conduct some banking operations in the country, and others still have expressed interest in joining them if more licenses are issued. Sampath Bank's statement said the firm wanted to benefit from rising interest in Burma's natural resources by bringing its experience from working in a similar market. "Myanmar is a country blessed with Jade and Gems together with oil and many other natural resources….," the statement said. "In keeping with the vision of Sampath Bank, the Bank carefully selected a country in which the conditions are somewhat similar to Sri Lanka, but has a vast potential to develop in the industry of Banking with mutual benefits to both Sri Lanka and Myanmar. Sampath Bank identifies Myanmar as a location of great potential with which it could share the experiences of high tech banking pioneered by the national bank for the last 28 years." The post The Irrawaddy Business Roundup (Oct. 31, 2015) appeared first on The Irrawaddy. |
| Dateline Irrawaddy: ‘Who Is Willing to Sing for the Poor?’ Posted: 30 Oct 2015 08:16 PM PDT  On this week's edition of Dateline Irrawaddy, the panel discusses the role of artists and musicians in political campaigning. Aye Chan Myae: Welcome to Dateline Irrawaddy. This week we'll be discussing artists and political campaigning. We have invited musician May Kha Lar, who has recently released hit song "Don't Want to Talk about Politics," to this week's discussion. Irrawaddy's Burmese editor Thalun Zaung Htet will also join me for the discussion. I'm Irrawaddy Burmese editor Aye Chan Myae. I think I should first ask May Kha Lar, who says she does not want to talk about politics. May Kha Lar: Sure. Please ask. ACM: The election is very near now. MKL: Yes, it is. ACM: We see that artists are entertaining at the rallies of political parties. Some have criticized this, saying that artists are not supposed to support a particular party. What is your view on this? MKL: Yes, in fact, artists are a class of people whose actions right away come to the public's attention. People know immediately when artists do something either good or bad. So we artists sometimes feel stuck in an uneasy situation, as we are now, for example. There is no hatred between the military and artists. Soldiers are citizens, and so are doctors, policemen, musicians, and students. So because they are people born out of people, I want everyone to get on well with each other and share the same view. However, political parties have emerged because people have different views and wishes. To be frank, I personally do not want to criticize anyone regarding the election. Musicians have the right to entertain for any party according to their wishes and their views. They shouldn't be prohibited. It is their individual wish. I myself have gotten stuck in many dilemmas. One of my close relatives is a high-ranking official while on the other side is my younger brother, who has made a lot of sacrifices. I was very confused and faced with a challenging dilemma. But to talk about truth and face the truth, if musicians want my advice on how they should choose, I would say that they should choose the one [political party] that is more closely associated with and more acceptable to the majority. ACM: Ko Thalun, we journalists are also supposed to be non-partisan. Some say that artists should not represent a particular party. Some say that artists used to support one side but now they support the other side. What is your view on this, Ko Thalun? Thalun Zaung Htet: Jobs are different in their natures. However, during a critical time for the country, everyone has to stand for the interests of the country. Even children know who has and who hasn't served the interests of the country, and who has harmed the country. Everyone knows this. Artists can't just ignore critical times for their country. Artists, who know what change people really want, have joined the rallies on a wider scale. Their participation has further aroused public eagerness for change. I, both as a journalist and as an ordinary citizen, really appreciate artists' joining campaigns for the sake of politics. I would say that this is the right move. ACM: Ma May Kha Lar, we didn't see much of you in the earlier days of campaign season. Perhaps you were busy recording. But now the election is just days away. What activities do you plan on engaging in? MKL: I am more passionate about this album than I was about my previous ones. And I have also put more energy into it. Other [musicians] have been devoting their time and energy to campaign season, but I have put my efforts into my album. And I think it is worthwhile to do so. I always keep in my mind that it is the people who feed me. Even children know what has happened to the majority and what to the minority. In my heart, I've always stood by the grass roots. When I do philanthropic works, I never make donations to rich monasteries or to rich places. Well-off persons don't need donations. For example, if a person is very rich, he is usually surrounded by people who are at his service or who need his help. Meanwhile, no one helps poor persons. Who else will help them to stand on their own feet if we don't help them? Since I was a child I've always wanted to help these sorts of people. I have also released a critical song written by U Naing ["Myanmar"]. This song was also a big hit. It was dedicated to the grass roots. I started my revolt [against authority] with that song and have not finished. ACM: Everyone who has watched and listened to your song "Don't Want to Talk about Politics" likes it. The song went viral when you uploaded it to Facebook. Ko Thalun, what do you think about the song? TZH: After having listened to the song, my wife, whenever she gets angry with me now, threatens me, singing the part of the song, "I don't want to talk about politics. Shall I take to the streets?" The song is a great hit. The title of the song is "Don't Want to Talk about Politics," but listening carefully to it, it's clear that people want to talk about politics. The song conveys sympathy for the woes and grievances of people. As a citizen, I appreciate that it is a really good song. The song provides food for thought and asks the authorities questions on behalf of the people. The song has spread among the public. It is one of the best election campaign tools. ACM: The song highlights the grass-roots. It reveals that there are such people in this country. They are the majority, though there are some affluent groups here as well. Your song was a hit because it represents the majority, I think. MKL: Yes, but the song can also be interpreted differently. Ko Naing Gyi is a really great composer. When I first released the song, the wife of a senior government official praised me, and this made me respect her. She said that friendship is friendship, that she is not angry with my song, that the song does not impact her, and that her friendliness towards me would not change. She also said, "the song is about the married life of the poor, why should I be angry with it?" So this makes me respect her and husband. Her husband is a senior government official. Meanwhile, others think that the song will affect their husbands, which is narrow-minded thinking. So I feel sorry for the couple, because I think that my song will somehow affect them. There are three social classes in Myanmar. Many people are willing to sing for the rich and for those in power. But who is willing to sing for the poor? That's why I stand for them. ACM: Ko Thalun, what is your assessment of the election, as it is just days away? TZH: At present, the entire town has turned red, and so has the rest of the country. The nearer we get to the election, the more cars are turning red and the more people are wearing red. The entire country is turning red. It is not that people have turned red for no reason. They have their own feelings. They were subjected to suppression. They are turning red because they view it [the National League for Democracy] as the party that can change their lives and their hopes. And I hope that things will become redder as the election draws nearer. ACM: You released the album "Don't Want to Talk about Politics" just before the election. Did you intentionally plan on your album coinciding with the election? MKL: I started recording the album in October and November of last year. I collected some songs and cancelled others that I didn't like. Then, the election was announced, and I planned on postponing my album until the post-election period. But then I met Ko Naing Gyi. I told him that I have feelings. What [feelings]? That I am very interested in philanthropic works. And I engaged in them. I went to urban and rural areas to engage in philanthropic works, and when I would arrive, I couldn't hold back tears. I am leading a good life, but others are not. How would they feel if it rains heavily, I wonder. I can eat well and make donations, but their lives are ragged. I asked Ko Naing Gyi to write a song. I said I would like to do something for the grass roots because there are hardly people willing to stand by them. I asked him to write about it a month or so before the election campaigns began. Perhaps it was two, three months ago now. Ko Naing said OK, and it only took a week or ten days for him to compose the song. I fell in love with the lyrics when I saw them. The song was exactly what I wanted. At that time, the recording of the album was already finished, but if that song was not included on the album, what a waste it would have been, because the election and the song are a perfect match. So I recorded the song along with other songs, such as "Union's Mother." ACM: The song "Union's Mother" is about the Irrawaddy River? MKL: The Irrawaddy River is essential for us. I am grateful to President U Thein Sein for suspending the Myitsone Dam Project. The next government, however, doesn't need to postpone it. It needs to repeal it. The Irrawaddy is the sine qua non for Myanmar. Mothers are crucially important for everyone. A person can't live without a mother, though it is better to have both parents. But personally, I think that we owe greater gratitude to mothers, and therefore in the song I compare the Irrawaddy River to a mother. The song is also really good, and I think that people will like it. So I would like to request that the next government safeguard the river's sanctity for the people. ACM: Thank you for your contributions. The post Dateline Irrawaddy: 'Who Is Willing to Sing for the Poor?' appeared first on The Irrawaddy. |
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