The Irrawaddy Magazine

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• Communications Ministry to Issue Fourth Telco License Before New Govt Takes Office
• Illegal Timber Trade Still Bedevils in ‘Balding’ Burma
• Parliament Pledges Safety Review after Hpakant Landslide Disaster
• NLD to Launch Litter Collection Drive
• For Burmese Artist Muu Muu, a Hill Station as Muse
• Indonesian Parliament Speaker Denies Freeport Extortion Allegation
• Malaysia’s Ruling Party Meets amid Tensions over Funding Scandal
• US Temporarily Lifts Trade Restrictions on Burma Shipping Hubs
• Thai Army Blocks Anti-Corruption Protest, Detains Activists
• First Report on Extractive Industries’ Revenues Due This Month
• Lawmakers Say More Armed Groups Needed for Post-Ceasefire Talks
• Govt Questioned on Tourism Figures
• US Set to Ease Sanctions for Asia World Port in Rangoon
• ‘Time for Change’ in Burma’s Opium Country?
• China Military Told to Hold Tongues on Reform Concerns
• In India, Modi Mocked and State Leader Heckled after Floods
• Philippine Crime-Fighting Mayor Tops Opinion Polls for President
• The Irrawaddy Business Roundup (Dec. 5, 2015)
• Trade Revenues Down Following Kyat’s Decline
• Double Cop Killer Sentenced to Death in Rangoon

Communications Ministry to Issue Fourth Telco License Before New Govt Takes Office Posted: 08 Dec 2015 04:11 AM PST A woman fills out a form as she buys a SIM card in a Rangoon phone shop. (Photo: Soe Zeya Tun / Reuters) RANGOON — After months of delays, the Ministry of Communications and Information Technology now says that Burma's fourth and final telecoms operator will be finalized before the new government takes office at the end of March. The tender for the position was opened to domestic firms in July, and the fourth license was expected to be awarded by mid-October. However, the decision was once again delayed, reportedly due to concerns over Burma's uncertain political climate. The Ministry of Communications and Information Technology received letters of interest from 17 companies, 11 of which were selected to be a part of a newly formed public company that will work in tandem with a foreign service provider selected by the government. "We formed the public company from local firms in November, and now we're in the process of selecting a foreign firm to work with this company. After this decision has been made, we will issue the license," Chit Wai, deputy permanent secretary of the Communications Ministry, told The Irrawaddy. Chit Wai would not reveal which firms were selected to form the consortium. "What I'll say is, the process of selecting the license won't be transferred to the next government. It will be finished during the current term," he added. According to industry sources, the Myanmar Computer Industry Association and the Myanmar Rice Federation are some of the larger local firms included in the company. Lwin Naing Oo, managing director of the local telecoms service provider Shwe Pyi Ta Kon, which was also included in the consortium, said that each of the 11 firms has put capital—approximately US$2.3 million each—toward the venture, in line with official regulations. "We're following government rules for this process, and as far as we know, the government is now looking for a foreign firm to work with the company, at which point the license will be issued," Lwin Naing Oo said. Interested local firms had to be in possession of at least 3 billion kyats ($2.3 million) or have enough capital reserves to create a new public telecoms company. Domestic stakeholders must also provide technical services, develop market strategies and foot some of the bill for the licensing and consulting fees required for selecting a foreign partner. "We don't actually know what percentage of the share will belong to local firms and what to foreign firms, but it will have to follow the law, specifically the investment law," Lwin Naing Oo added. Amendments to the law are still being discussed in the Union Parliament. Lwin Naing Oo also mentioned that the government appeared to be conducting the search for a foreign partner cautiously, likely because the fourth operator will become the biggest public company in the telecoms operation industry. The government has so far issued three licenses, to Myanmar Post and Telecommunications (MPT), Qatar's Ooredoo and Norway's Telenor. State-owned MPT monopolized Burma's telecoms industry under the military's decades-long rule, but competition in the sector has been ratcheted up since foreign companies were first allowed to enter the market in August 2014. The post Communications Ministry to Issue Fourth Telco License Before New Govt Takes Office appeared first on The Irrawaddy.

Illegal Timber Trade Still Bedevils in ‘Balding’ Burma Posted: 08 Dec 2015 04:05 AM PST People stand atop a pile of raw timber by the banks of a riverside in Rangoon on Feb. 4, 2013. (Photo: Soe Zeya Tun / Reuters) MYAWADDY, Karen State — "Our Dawna range is like a bald head after severe logging," said Aung Myo, a Myawaddy resident and trader, as he pointed toward the formidable Dawna mountain range in Karen State, near the Thai-Burma border. Of Burma's five official overland crossings with Thailand, it is here and at the adjacent Thai border town of Mae Sot that the illegal timber trade once flourished, and while that may no longer be the case, Aung Myo said it's not for a reason that environmental conservationists would hope. "More than 10 years ago, much illegal timber went to Thailand through this border area, but today there are very few timber trees left in the Dawna mountains," he said. The Dawna range, which extends north-south for about 350 kilometers and bisects the townships of Myawaddy and Kawkareik before tapering off in the western limits of the Thai highlands, once hosted a bounty of native timber specimens, including the prized teakwood for which Burma is renowned. But in just over a decade, a combination of legal and illicit logging has wiped out large swathes of forest here, with Aung Myo's anecdotal evidenced backed by hard figures from the United Nations. According to the UN Food and Agriculture Organization, Burma lost an annual average of 1.7 percent of its forests from 2010-15, bringing total forest cover down to 45 percent. Just 15 years ago, forest cover stood at 65 percent, the UN agency says. Policymakers have not sat idly by as the nation's forests shrink; last April a ban on raw timber exports went into effect, requiring that all wood logged in Burma undergo value-added processes before leaving the country. But deprived of legal channels to move unprocessed timber out of the country, a thriving illicit trade continues, with the majority of illegal timber seized as it makes its way to trading points in northeastern Burma near the border with China. This week brought news that authorities on Dec. 1 seized a stash of "ownerless illegal logs" in Katha, Sagaing Division, according to a report by the state-run Global New Light of Myanmar on Monday. A team made up of officers from the Ministry of Environmental Conservation and Forestry and the Myanmar Police Force discovered about 54 tons of logs in the Shweli River at Hlawkasin Jetty. Police said smugglers are believed to have logged the trees from Burma's Kananme Forest Reserve before attempting to hide them through submersion in the river. Via state media reports like Monday's, the government is beginning to acknowledge the extent of the problem, but Win Myo Thu of the Economically Progressive Ecosystem Development group (EcoDev), a local NGO, told The Irrawaddy earlier this year that far more transparency was needed. "Deforestation of dense forests is particularly worrying in Burma," Win Myo Thu said. "Environmentalists are encouraging [the government] to issue an honest statement on current deforestation rates and the remaining forest coverage." Citing government data for the fiscal year ending in March 2013, last year Reuters reported that Burma's total timber exports surpassed 1.24 million cubic tons and generated more than US$1 billion in revenue, of which teak alone earned $359 million. It is widely accepted, however, that in actual terms far more money and timber products are changing hands via the black market. "The reason the logging numbers are massive is the government's weakness in law enforcement and its capacity to control logging despite having limits on exports," said Bar Bar Cho, senior consultant for the Myanmar Timber Association. "We have massive forests across country. Forestry officials are not able to cover all these areas, so this is the result," he added. Blame to Share Burma's former military rulers are often criticized for having overseen a decades-long plunder of the country's natural resources, but more than a dozen ethnic armed groups on the nation's peripheries have also used this natural bounty to fund their operations and enrich their leaders. Ceasefires in recent years between the government and many of these groups, coupled with Burma's political and economic opening, have brought the country's rapid deforestation to the forefront of discussions in environmental and conservation circles. Bar Bar Cho said two separate but related dynamics needed to be managed in order to stem the flow of illegal timber within Burma and exiting the country: the government's relationships with neighboring countries and ethnic armed groups internally. Illegal logging at the country's borders is either directly or indirectly linked with non-state armed groups whose members, even if they are caught, may not face prosecution from a government that is reluctant to potentially jeopardize a peace process that it initiated in 2011. The Ministry of Environmental Conservation and Forestry's ability to enforce the law is further limited in northern Burma by active conflict, leaving the Burma Army—an institution with a checkered track record on human rights and transparency—best positioned to police the timber trade. In the Myawaddy-Mae Sot border area, a degree of cooperation between governments has helped reduce the flow of illegal raw timber from Burma to Thailand, though Aung Myo said smugglers still use cover of darkness to send some unprocessed logs across the Moei River, which separates the two countries. "But now, the number of logs has significantly declined here because Thai police also make arrests if they see illegal timber trucks or personnel there, it's not like in the past," Aung Myo said. Moe Nyo, a police officer in Myawaddy District, acknowledged that the Moei River is still a conduit for a small amount of illegal timber exports. "Government policy is important. I agree with why the government has limited timber exports here—we're facing serious deforestation, it was once very thick trees around here, not anymore," Moe Nyo said. The Burmese government has attempted to crack down on illegal trade by forming mobile team task forces made up of police, customs and Ministry of Commerce officials, and local authorities. According to data provided by the Ministry of Commerce's mobile team, more than $18 million worth of timber has been seized over a period from 2012 to late November of this year, with seizures concentrated in areas along the Sino-Burmese border. "Actually, as far as I know, this amount that the mobile team seized is only 1 percent of the Forestry department's total detained amount," said Than Win, director of the Ministry of Commerce, an estimate that would put the total value of seized illegal timber at a staggering $1.8 billion. "As far as I know, most of this timber was seized while going to China. The amount of logs to Thailand is very few, sometimes almost none," Than Win said. AEC Looms Unknown still is what effect the advent of the Asean Economic Community (AEC) next year will have on deforestation in Burma and the ability of local companies to compete in an increasingly competitive regional marketplace. While the eventual goal is tariff-free exchange of all goods across the 10-nation bloc, Burma and three other Asean countries will have until 2018 to reach that point on some goods, including value-added timber products. Given disadvantages that the country faces in competition with some of its more developed neighbors, Tin Cho, senior consultant of Parami Roundtable Group, said restrictions and bureaucratic red tape should be eased for value-added timber enterprises, making it a more attractive—and legal—alternative to raw timber exports. Non-tariff measures could also be used by the government to protect these local businesses from external competition, said Tin Cho, whose organization gives awareness trainings about the AEC across the country. Aung Ko Ko, an economist who regularly contributes to local newspapers, echoed Tin Cho comments, adding that the government should scale up efforts to modernize export industries. "We lack technology to produce value-added, so the government also should promote it, as well as to encourage SMEs [small and medium enterprises]. We need better policy on it," Aung Ko Ko said. "The reason that raw timber is attractive is there are big market in other countries. If they produce value-added, it will to take time, money and technology, so they just go and smuggle illegal timber to other countries," he added. The issue is just one among a litany of challenges that will face the incoming National League for Democracy (NLD) government when it takes power next year. "The new government has a great deal of responsibility, they will have to look at how to protect local industry as well as needing to change policy and ease processes," Aung Ko Ko said. Failing to deal with the problem could cost Burma, and not just in terms of its trees and unrealized tax revenue for government coffers badly in need of the funds. "According to a study, there are around 20 million people living within a five-mile radius of forests and around six million people living along rivers [in Burma]. These people will suffer if the water and forests they rely on are depleted soon," Win Myo Thu told The Irrawaddy earlier this year, as the country grappled with its worst flooding in recent memory. The post Illegal Timber Trade Still Bedevils in 'Balding' Burma appeared first on The Irrawaddy.

Parliament Pledges Safety Review after Hpakant Landslide Disaster Posted: 08 Dec 2015 02:40 AM PST A miner rests as others search for jade stones at a mine in Hpakant, Nov. 27. (Photo: Soe Zeya Tun / Reuters) CHIANG MAI, Thailand — The Upper House speaker has told lawmakers that a decision on safety measures for mines operating in Hpakant will be presented to the Union Parliament in the coming weeks. Speaking on Monday, Khin Aung Myint said that members of the government would address lawmakers on the subject of improving safety in the jade-rich Kachin township before the end of the year, according to the Tuesday edition of the state-run newspaper Myanmar Ahlin. On Nov. 21, a deadly incident in Seik Mu village claimed the lives of at least 114 prospectors, who were in a mine basin handpicking for jade residue when a hill of mine tailings collapsed and buried them alive. Upper House Kachin lawmaker Khet Htein Nan last week presented a motion asking the government to urgently introduce new safety regulations to prevent future catastrophes. On Dec. 1, another three people died in Wai Khar village, some 10 miles away from Seik Mu, according to local villager Shwe Thein. He told The Irrawaddy that the mining activities of some 12 companies had been suspended after the deadly incident in November. November's disaster has shed light on the need to address the structural problems of Burma's jade industry, which recently came under renewed scrutiny with the October release of a Global Witness report into the ownership of Hpakant's lucrative jade mines. The London-based watchdog charged that many of the mines were operated by senior figures of the former military junta, military-owned conglomerates and junta-linked tycoons, earning between them an estimated US$31 billion in revenue last year. In his monthly radio address to the nation on Saturday, Dec. 5, President Thein Sein also highlighted the need for a review of safety practices in the high-risk work environment in the wake of the landslide. "It is necessary to strictly enforce safety rules as well as provide safety equipment to allow quick responses to accidents at the work sites," he said. Lawmakers have urged the government to outline a specific safety plan. Aung Kyi Nyunt, an Upper House lawmaker for the National League for Democracy representing Magwe, told The Irrawaddy that a comprehensive response was needed. "As there was much harm caused by the Hpakant landslide, there should be a specific safety plan for the poor living and working in the area as handpickers, who are suffering especially from large-scale mining conducted with heavy machinery," he said. "We have to wait and see whether the Union Government will implement such a plan." The post Parliament Pledges Safety Review after Hpakant Landslide Disaster appeared first on The Irrawaddy.

NLD to Launch Litter Collection Drive Posted: 08 Dec 2015 02:28 AM PST National League for Democracy MP-elect Phyu Phyu Thin, right, takes part in a garbage collection drive in Rangoon Division's Mingala Taung Nyunt Township on Sunday. (Photo: Zaw Min Tun / Facebook) RANGOON — The National League for Democracy (NLD) has ordered its newly elected representatives and members to start picking up trash in their respective constituencies from Sunday as part of a nationwide campaign to keep neighborhoods clean and improve public health. In a statement issued on Monday, the NLD called on its newly elected lawmakers, members and the general public to take part in the so-called "Environmental Beautification Campaign" on December 13. The party's chairwoman, Aung San Suu Kyi, will herself lead the garbage collection drive on Sunday in Rangoon Division's Kawhmu Township where she was re-elected to the Lower House in the country's Nov. 8 general election. "To create real change, let's start from the basics," is the motto for the campaign, according to an announcement in the NLD's journal, D-Wave. The campaign's goals are to demonstrate that effective results can be swiftly realized with the public's collaboration; to improve public health by keeping the environment clean; and to help present a more attractive country in light of rising tourist arrivals, according to the statement. During a meeting with newly elected NLD lawmakers in Rangoon late last month following the party's thumping election victory, Suu Kyi asked MP-elects to lead by example and improve sanitation by personally cleaning up their constituencies. Heeding the NLD leader's advice, some successful party candidates, youth leaders and others have already begun cleaning activities in public places on weekends. Aung Myat Kyaw, an NLD MP-elect for a local parliament seat in Rangoon Division's Bahan constituency, said there were plans to clean up the local area on weekends with the assistance of lawmakers, party members and constituents. "I hope we can systematically raise public awareness about not littering through this campaign," he said. The post NLD to Launch Litter Collection Drive appeared first on The Irrawaddy.

For Burmese Artist Muu Muu, a Hill Station as Muse Posted: 07 Dec 2015 11:23 PM PST Click to view slideshow. RANGOON — Living in a scenic hill town has many benefits, not least of all for an artist in search of inspiration. Apart from Pyin Oo Lwin's cool weather and laid back vibe, the subject matter on offer is abundant, from traditional horse-drawn carts and colonial mansions to an ethnically diverse community that stems in part from the town's legacy as an old British hill station in Mandalay Division. "The weather here is perfect for colors," says Muu Muu, a Pyin Oo Lwin resident and artist known for his intricate and bold brush strokes in paintings of the town in which he has lived for several decades. "For an artist, the town is like a buffet created by nature. I'm a lucky man." The mediums he uses are, like many other artists, ink and acrylic. But his distinctive and preferred choice of canvas, known locally as "Shan paper," sets him apart from others. "It's something people have ignored. It's traditional. Plus, it's cheap," he says of the material, which is made from mulberry pulp. Though he is known for depictions of its bustling town center and buildings around Pyin Oo Lwin, which used to be the seat of government for British Burma in the summer months of the colonial era, the 60-year-old artist says his artistic senses are not limited to those subjects alone. "Probably I have been limited by the medium I use, but not by the subjects around me," he posits. Still, anyone familiar with his body of work would agree that there's no denying Muu Muu's particular affinity for horses, moons and women. "It's difficult to explain my obsession with them. For horses, they were my childhood favorite. When I stare at a blank canvas to be painted, they appear in my mind most of the time," he explains. Originally hailing from Winbo village in Sagaing Division, Muu Muu says he was fortunate to have parents who supported his interest in painting as a child. In 1976, he joined the government's Fine Arts School in Mandalay. At the same time, he studied contemporary art under the guidance of U Khin Maung (Bank), a Burmese artist who pushed for the development of a modern movement in painting in Burma, which began in the early 1960s. With nearly 40 years as an artist under his belt, Muu Muu has held five solo shows in Burma and has had his work displayed in 10 international exhibitions in countries like the United States, France, Singapore and Malaysia. His sixth solo show is due to open next week. After all these years, what does he think of his trade? "Art is magic," he says. "It captures your attention with lines and tones. When you add your emotion to them, it can enchant you." "Sketch & Think," the sixth solo exhibition by Muu Muu, will be on public display at the Think Art Gallery in Rangoon from Dec. 13-16. The post For Burmese Artist Muu Muu, a Hill Station as Muse appeared first on The Irrawaddy.

Indonesian Parliament Speaker Denies Freeport Extortion Allegation Posted: 07 Dec 2015 09:29 PM PST Maroef Sjamsoeddin, left, head of Freeport McMoRan Inc’s Indonesian operations, attends a parliamentary ethics panel in Jakarta, Dec. 3. (Photo: Agung Rajasa / Antara Foto & Reuters) JAKARTA — The speaker of Indonesia’s parliament on Monday denied seeking to extort shares in the local unit of Freeport McMoRan Inc. to ensure a contract extension for the mining firm, a member of the assembly’s ethics panel said. Freeport, which operates one of the world’s biggest copper and gold mines, is at the centre of a major political scandal after the head of its Indonesian operations told the panel last week he had secretly recorded a meeting in which speaker Setya Novanto asked for a 20 percent stake. A panel summoned Novanto for questioning on Monday, but the speaker—a senior member of Indonesia’s second-biggest political party, Golkar—asked for a closed-door hearing. “What is clear is that he denied the accusations or reports, including the contents of the recording that became the basis for the ethics council to hear this case,” council member Akbar Faisal told reporters after the hearing. Journalists thronged the parliament on Monday, but a row of security officers kept them out of the room where the hearing was held. Novanto dodged the journalists, entering by a side entrance. His assistant did not respond to telephone calls seeking comment. “We have to respect the process,” President Joko Widodo told reporters. “But if it is said that there is profiteering, asking for shares, that is not done. This is about decency, morality, and the authority of the state.” Analysts say the allegations could further erode investor confidence in Indonesia, which is routinely ranked as one of the world’s most corrupt countries. Anti-corruption group Transparency International says its surveys show the parliament is perceived to be among Indonesia’s most corrupt institutions. The contract extension and now the scandal are more headaches for Freeport in Indonesia, where new rules have banned the export of unprocessed minerals, forcing mining groups to build smelters. The Indonesian government already has a 9.36 percent stake in Freeport’s Indonesian operations, and is due to take another 10.64 percent stake under existing regulations. US-based Freeport had sought the contract extension to give it legal certainty before investing billions of dollars in an underground phase at its Grasberg gold and copper sites in Papua province. In the recording, said Freeport’s Indonesia head, Maroef Sjamsoeddin, Novanto indicated that a 20 percent stake be given to Widodo and Vice President Jusuf Kalla. Novanto allegedly told the Freeport executive that he could ensure the miner’s contract would be extended from 2021 to 2041. Golkar, the parliamentary speaker’s party, supported Widodo’s opponent in the 2014 presidential election. The post Indonesian Parliament Speaker Denies Freeport Extortion Allegation appeared first on The Irrawaddy.

Malaysia’s Ruling Party Meets amid Tensions over Funding Scandal Posted: 07 Dec 2015 09:22 PM PST Malaysian Prime Minister Najib Razak delivers a speech at the opening of the Asean Summit in Kuala Lumpur, Nov. 21. (Photo: Olivia Harris / Reuters) KUALA LUMPUR — Malaysian Prime Minister Najib Razak has so far weathered calls for him to quit over a funding scandal, but as his party opens its annual meeting on Tuesday he must address how it can dodge a defeat at the next election that would end its 58-year rule. Malaysia's anti-corruption agency has questioned Najib over deposits of nearly US$700 million funds made to his personal bank account, while state fund 1Malaysia Development Berhad (1MDB) is facing probes in several countries over allegations of graft. The scandals have shaken investors in Southeast Asia's third-biggest economy and rocked public confidence in the coalition led by Najib's United Malays National Organisation (UMNO), which has held power since independence in 1957. "In Malaysia, if you control UMNO you control the country," said Ooi Kee Beng, deputy director at the Singapore-based ISEAS-Yusof Ishak Institute. "The only way UMNO can turn things around for itself is with a new leader, a new agenda and a new direction in leadership." Backing for the government among the ethnic Malay majority that forms the bedrock of UMNO's support sank to 31 percent in October, from 52 percent in January, according to the most recent poll from research firm Merdeka Center. UMNO suffered its worst ever election result in 2013, when the ruling coalition clung on to a parliamentary majority despite losing the popular vote as it was deserted by ethnic Chinese voters and many urban dwellers. Ahead of the party's annual general assembly, Najib appealed for unity. "Stop the bickering, stop spreading and believing slander, and stop doing things that don't bring any benefit," Najib said in his Facebook post on Friday. Najib, 62, still enjoys the backing of most of UMNO's powerful division chiefs, and even his fiercest internal critics accept that he cannot be unseated. The opposition is also weak without charismatic leader Anwar Ibrahim, who was jailed on charges of sodomy in February, a verdict his supporters say was politically motivated. PM Under Pressure But pressure is nonetheless mounting on Najib over a scandal that erupted in July, when the Wall Street Journal reported that investigators looking into 1MDB found nearly US$700 million was transferred to the prime minister's own bank accounts. The uncertainty created has hit an economy already reeling from falling oil and gas prices, with the ringgit currency losing nearly a quarter of its value against the dollar this year. Najib, who chairs 1MDB's advisory board, has denied taking any funds for personal gain and Malaysia's anti-graft agency, MACC, has said the money was a political donation from a Middle Eastern donor. But foreign agencies, including the FBI, are investigating 1MDB. MACC took a statement from Najib on Saturday. A handful of UMNO division chiefs called last month for Najib's resignation and the party's second-in-command, Muhyiddin Yassin, has demanded a fuller explanation on the 1MDB issue. Najib's biggest threat, however, comes from influential former Prime Minister Mahathir Mohamad, who has said UMNO will lose the next election in 2018 if Najib remains in charge. Najib's supporters acknowledge UMNO is facing a crisis. "We are far from perfect, we have weaknesses and as we grow, mistakes are inevitable," UMNO vice president and Malaysia's Defense Minister Hishammuddin Hussein was quoted saying by the state news agency Bernama, adding UMNO faced a "test of trust". Najib has reacted to the growing opposition by cracking down on dissent. A new National Security Council Bill was pushed through parliament last week, which opponents say gives the government sweeping powers that threaten human rights. In a break from tradition, the party's deputy president, Muhyiddin, will not speak at the assembly. He was sacked as deputy prime minister in July for speaking against Najib. Media access will also be tightly controlled. In his latest blog post former leader Mahathir described this year's meeting as futile. "Proceedings will be closed-door. And only the president's speech will be aired," he said.   The post Malaysia's Ruling Party Meets amid Tensions over Funding Scandal appeared first on The Irrawaddy.

US Temporarily Lifts Trade Restrictions on Burma Shipping Hubs Posted: 07 Dec 2015 09:16 PM PST Workers chat near a ship at Rangoon's Asia World port, July 2014. (Photo: Soe Zeya Tun / Reuters) WASHINGTON, DC — The United States is temporarily easing trade restrictions on Burma by allowing all shipments to go through its ports and airports for six months, an effort to boost the Southeast Asian country's opposition party after its landmark election win in November, US officials said on Monday. The policy change, coming after Aung San Suu Kyi's National League for Democracy (NLD) won a landslide victory last month in Burma's first nationwide free elections in 25 years, applies even to ports and airports controlled by entities on the US sanctions blacklist, the officials said. To bolster Burma's transition to democracy after decades of military rule, US officials began lifting sanctions against the country after a civilian government was formed in 2011. But officials acknowledged on Monday that remaining US sanctions against those with ties to Burma's military have had the unintended consequence of halting "many, many dozens" of shipments. Reuters reported last month that major US banks, such as Citigroup, Bank of America and PNC Financial were shying away from backing Burma trade after discovering that the Asia World port—one of the country's most important shipping terminals—is controlled by a businessman on America's sanctions blacklist. Exporters use trade finance from banks to ensure they get paid after shipments arrive, and the banks' withdrawal has led to a sharp decline in US shipments into Burma. "It was beginning to escalate," said a senior US official. "Not only US banks but also third country exporters and third country financial institutions were beginning to hold up trade going into and out of Burma," the official said, using another name for the country of 51 million people. Officials cautioned that while the policy shift allows financing of shipments through blacklisted trade hubs, banks are still barred from doing business directly with the banned firms. A second senior administration official said Monday's move would lend a boost to Suu Kyi's party, and was "potentially the single most important thing that we can do on the economic front immediately to give the NLD some breathing space over the next several months as it forms its government." The official said the banks' freeze on much of Burma's trade with the West was most punishing on regular Burma citizens. "You can think of the Burmese rice farmer who is trying to get some rice out" of the Asia World port, the official said. "The trade transaction is held up and the rice ends up rotting in the docks." Years after the US began to lift its near-total ban on trade with Burma, more than a hundred people and companies remain on the US sanctions blacklist, some of them the country's biggest economic players, creating a minefield for Western businesses seeking to profit from the new openings. "The US has been very much a proponent of US businesses entering and increasing trade and economic ties," said Peter Kucik, a former senior sanctions advisor at the US Treasury Department. "Impediments like this really need to be dealt with quickly and efficiently to make sure they don't undermine that very intention." US officials said they would likely consider an extension of the sanctions relief in several months. "There's no question businesses would like a longer license … but while this window is not ideal from a business perspective, for now it substantially addresses the challenge," said Peter Harrell, who advises businesses on entering markets under sanction. "Now you know you will be able to ship into the country for at least six months." The post US Temporarily Lifts Trade Restrictions on Burma Shipping Hubs appeared first on The Irrawaddy.

Thai Army Blocks Anti-Corruption Protest, Detains Activists Posted: 07 Dec 2015 09:08 PM PST Thai people pay their respect to giant bronze statues of former King Ram Khamhaeng after a religious ceremony at Rajabhakti Park in Hua Hin, Prachuap Khiri Khan province, Thailand, on July 27, 2015. (Photo: Athit Perawongmetha / Reuters) BANGKOK — Thailand's military government blocked an anti-corruption protest Monday, detaining about three dozen students and other activists who were headed to a park honoring past kings that was allegedly built with money from shady dealings involving several senior officers. The military's efforts to quash the protest included detaching the railway car on which the protesters were traveling to Rajabhakti Park, near the seaside town of Hua Hin, before taking them into custody. Officials abruptly announced that the park, on army land, was closed for the day for renovations. The detainees were all released by Monday night, according to Thai Lawyers for Human Rights, a group that has been monitoring the situation. Most but not all signed a memorandum of understanding, it said. It has become a standard procedure for detainees to be asked to sign a statement acknowledging their liability if they run afoul of the junta's protest regulations again. The case has become a major scandal in Thailand, largely because the junta that has run the country since staging a coup last year has vowed to reform the country's political system to stamp out corruption, which it blames on politicians. The affair has also attracted attention because the leaking of information casting suspicion about an army-led project is rare, leading to speculation that it may be linked to rifts within the junta, or an attempt to discredit it by other influential forces within Thai society. The military, which seized power in a May 2014 coup, has denied financial wrongdoing related to the park, built under its auspices and featuring giant statues of seven past Thai kings. It announced last month that its own investigation cleared its officers of any wrongdoing, but under public pressure agreed to launch a new probe. Two senior officers have been accused of wrongdoing, including kickbacks and the diversion of funds contributed to the project, which has been described as costing 1 billion baht (US$28 million). Recently retired army commander Gen. Udomdej Sitabutr, who is deputy defense minister and a member of the ruling junta, was head of the foundation overseeing the park's construction. It officially opened in late September. The New Democracy Movement, comprising mostly students, issued a statement after the detentions describing their planned protest as "a symbolic activity to inspect corruption" at the park. It said the authorities' action "shows that there is corruption in the construction of Rajabhakti Park. The more they try to block us from the truth, the more likely that there is corruption in the military junta." The group said 36 people had been detained, slightly more than initially reported by the authorities. Government spokesman Maj. Gen. Sansern Keawkamnerd accused the students of being misleading about their intentions, telling an interviewer from TV Channel 9 that "what this small group of students does is not about what they claim to do, checking government corruption, because that has to be done with documents not at the park, where there is nothing but hard ground and statues of past kings." He said it was a political activity and violated a law that bans public meetings of more than five people for political purposes. Sansern said he hoped the result of the new corruption investigation would be released before the new year, and vowed that anyone found to have committed wrongdoing would be prosecuted. The post Thai Army Blocks Anti-Corruption Protest, Detains Activists appeared first on The Irrawaddy.

First Report on Extractive Industries’ Revenues Due This Month Posted: 07 Dec 2015 04:45 AM PST Miners search for jade stones at a mine dump at a Hpakant jade mine in Kachin State on Nov. 25, 2015. (Photo: Soe Zeya Tun / Reuters) RANGOON — Burma will submit its inaugural Extractive Industries Transparency Initiative (EITI) report by the end of the month, detailing the financials of dozens of companies across three of the country's extractive sectors, according to presidential advisor Zaw Oo, who on Monday described the expected filing as a "present" for the next government. The report from the Multi-Stakeholder Group (MSG), a tripartite body of representatives from civil society, extractive industries firms and the government, will include data on licensing agreements, company profits and taxation paid to the government, among other financial details. The filing of the report by year's end will represent "a good present for the new age," according to Zaw Oo, referring to the transfer of power to a new government in 2016. According to the MSG, data for the 2013-14 fiscal year from 13 oil and gas companies representing 100 percent of revenue from that sector; 30 gems companies representing 67 percent of income from jade and gems emporia; and 11 firms representing 50 percent of mining sector revenues will be included in the report, with figures from the included enterprises totaling US$3.1 billion, about one-third of the value of total exports for the three sectors in 2013-14. "Myanmar will become the first country to include its gems sector, among EITI implementing countries globally," Zaw Oo said. The international accounting firm Moore Stephens reconciled data provided by both the government and corporations to ensure the forthcoming report meets with EITI standards. Globally, 31 countries are considered EITI compliant, and Burma is among 18 other nations regarded as "candidate countries" working toward compliance with the protocol. One of the MSG members, Dr. Kyaw Thu, said the report would mark only the first step in a process aimed at better, more equitable resource governance in Burma. "Transparency is the initiation of accountability" he said. "The long process is just beginning." The MSG includes nine representatives from civil society organizations, six representatives from oil, gas and mining companies, and six representatives from the government. Maung Maung Thein, Burma's deputy finance minister, told reporters at a press conference at the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) on Monday that it would be the responsibility of the next government to use the report to craft better policies on natural resources' management. Burma is required to publish its first EITI report by January 2016, after it became an EITI candidate country on July 2, 2014. A second EITI report must be published in early 2017 and, pending a review of adherence to seven transparency standards by the Norway-based International EITI Board, Burma could be recognized as EITI compliant by mid-2017. "We believe we will pass the exam," Zaw Oo said. The post First Report on Extractive Industries' Revenues Due This Month appeared first on The Irrawaddy.

Lawmakers Say More Armed Groups Needed for Post-Ceasefire Talks Posted: 07 Dec 2015 04:28 AM PST Soldiers from the Shan State Army-North, the armed wing of the Shan State Progressive Party, on patrol in Mong Ark village, Nov. 30. (Photo: Steve Tickner / The Irrawaddy) RANGOON — More than a dozen lawmakers used Monday's proceedings at the Union Parliament to discuss whether to sign off on the government's "nationwide" ceasefire agreement (NCA), with many speakers saying they were reluctant to proceed with the accord until more ethnic armed groups participated. Three more lawmakers are scheduled to discuss the ceasefire deal, which was signed by the government and eight non-state armed groups in Naypyidaw on Oct. 15. Should the parliament approve the bill, the government will have license to continue discussions with those groups under the terms of political dialogue set out in the agreement. Many of those who spoke on Monday said they doubted the accord's ability to end ethnic conflict in Burma, citing the number of groups who had refused to sign. "It is not easy to ask only the Union Parliament to approve this," said ethnic Mon lawmaker Nai Bayar Aung Moe. "The majority of strong armed groups did not sign this NCA. Only armed groups who are weak signed it…Indeed, it is not appropriate to use the term 'NCA'. Only eight armed groups signed it, but there are 21 armed groups in our country." San Pyae, an Upper House lawmaker from Kachin State, said that groups who had not signed the ceasefire agreement should still be given the right to participate in future discussions. "All ethnic leaders should be included in this political dialogue," he said. "We should even invite other ethnic leaders who do not have armed groups." Neither the New Mon State Party (NMSP) nor the Kachin Independence Organization (KIO), two armed groups operating in the states represented by Bayar Aung Moe and San Pyae, were signatories to the Oct. 15 accord. The KIO has faced renewed hostilities from the government since a 17-year bilateral ceasefire broke down in 2011, and fresh attacks on KIO positions have been mounted since the "nationwide" ceasefire agreement was signed. In central Shan State, the armed wing of the Shan State Progressive Party (SSPP) was subject to a fresh offensive by the Burma Army after the armed group refused a demand to withdraw from a strategic port base by Oct. 6. Clashes have continued since the "nationwide" accord was signed and elections were held on Nov. 8, in which the opposition National League for Democracy (NLD) enjoyed a resounding victory. May Win Myint, an NLD lawmaker, told the parliament that party leader Aung San Suu Kyi had declined to participate in the ceasefire agreement's signing ceremony because the majority of ethnic armed groups refused to sign. She added that Suu Kyi had also worried about creating a potential misunderstanding over her intentions among those groups to boycott the agreement, and feared that those who boycotted would come under more pressure from the government. "We cannot say it is a nationwide ceasefire agreement, because there are other ethnic armed groups that did not sign it," May Win Myint said. "We want the government and the military to welcome other armed groups who have not signed it yet." The government prevented three insurgent groups from participating in the ceasefire accord, despite their representation in the Nationwide Ceasefire Coordinating Team, a body representing the interests of 16 armed groups during negotiations for the agreement. The exclusion of the Ta'ang National Liberation Army, the Myanmar National Democratic Alliance Army and the Arakan Army were instrumental in leading the KIO and other prominent armed groups from withdrawing their support for the accord. While many of the speakers on Monday were wary of the agreement's future, others said that continued political dialogue enshrined in the agreement was a necessary first step in securing a permanent end to ethnic conflict. "We welcome it. This NCA could help to end conflict and fighting," said Dwe Bu, a Kachin lawmaker from Lower House, who nonetheless reiterated the need to include more armed groups. "Our lawmakers and our people want to know how our government will assist other ethnic armed groups to participate in the NCA. It is important that this agreement is all-inclusive. There are some of our Kachin people who have not been able to go back to their homes for 4 or 5 years. We need an all-inclusive agreement so we can stop the fighting in this country." The post Lawmakers Say More Armed Groups Needed for Post-Ceasefire Talks appeared first on The Irrawaddy.

Govt Questioned on Tourism Figures Posted: 07 Dec 2015 04:08 AM PST Tourists pose for a photo in front of the Union Parliament in Naypyidaw, Nov. 2015. (Photo: Soe Zeya Tun / Reuters) RANGOON — Once again, the government has claimed Burma is on track to meet its tourist arrival figures for the year. Once again, the government stands accused of inflating the figures. Hotels and Tourism Htay Aung told a Saturday meeting with tourism industry leaders that despite concerns over political change in Burma, the number of tourists who have come to the country in 2015 has surpassed 4.2 million. Citing the recent election win by the opposition National League for Democracy, Htay Aung said the industry was well placed for future growth. "The [tourism] landscape is very positive because the change caused by the election has done a lot to favor the tourism industry," he said. "There are many people inquiring about trips here. So I predict that, at the least, we will receive 4.7 million foreign travelers this year." Earlier this year, Htay Aung said that the ministry expected between 4.5 and 5 million foreign tourists to be admitted into Burma for 2015. Foreign arrivals have increased dramatically over the past few years, rising from 800,000 people in 2011 to just over three million in 2014. Industry observers remain skeptical of the ministry's figures, which tally arrivals of all foreign passport holders at land and air entry points. Most travelers to Burma come through two major Thai border checkpoints—Tachileik in Shan State and Myawaddy in Karen State. In 2014, out of 3 million foreign visitors, over 1.9 million crossed into Burma at these two crossings into towns with few tourist amenities and poor transport links to urban centers further afield, suggesting that the vast majority of arrivals were conducting business or expatriates taking visa runs in order to satisfy the requirements of Thai immigration authorities. Sabei Aung, managing director of Nature Dream Travel and Tour, told The Irrawaddy that it was difficult to claim that many of those who crossed into the country from Thailand were genuine tourists. "Along border areas there are weak tourism services—for example, there are no good airports, hotels, guides, or other facilities—so how can we be sure that everyone is a tourist?" she asked. "I want to ask the ministry why it includes all of these numbers." She added that the ministry should work to provide a more accurate snapshot of the tourism industry before the new government takes office at the end of March, in order to identify challenges facing the sector. "If there really were 5 million tourists coming here, this would have definitely caused a problem due to a lack of infrastructure, human resources and other amenities, like communications and banking," she said. According to the ministry, Thai travelers account for over 70 percent of foreign travelers to Burma, followed by citizens from the European Union, the United States, and Canada. The ministry claimed that Burma received US$1.78 billion in tourism revenue last year, an increase from the approximately $500 million it received in 2012. The post Govt Questioned on Tourism Figures appeared first on The Irrawaddy.

US Set to Ease Sanctions for Asia World Port in Rangoon Posted: 07 Dec 2015 02:49 AM PST The Asia World Port Terminal in Rangoon. (Photo: JPaing / The Irrawaddy) CHIANG MAI, Thailand — The Obama administration looks set to ease some sanctions targeting Asia World, a firm widely believed to have built its initial fortune on the drug trade before becoming one of Burma's largest conglomerates, after sustained lobbing from the US banking industry. According to reports from Bloomberg and AP, the US Treasury Department's Office of Foreign Assets Control (OFAC) is expected to alter sanctions against Asia World as early as this week in order to allow US companies to ship goods through the firm's Rangoon port. In July, the Clearing House Association, a New York-based group that includes 24 of the world’s largest commercial banks, and the Bankers Association of Finance and Trade sent a joint letter to OFAC calling for an exemption to the sanctions that would permit US banks to facilitate payments to the Asia World Port Terminal (AWPT). According to the letter, portions of which were published by Reuters and the Myanmar Times, because of its location and modern facilities, in the years to come the AWPT is expected to handle the "vast majority of containerized trade of the sort financed or facilitated by US and other global financial institutions". The letter warned that blocking port-related payments to Asia World "could amount to a de facto trade embargo", as half of the country’s trade passes through the Rangoon port. Hong Kong-based Hutchison Port Holdings Ltd does however operate a port south of Rangoon larger than the AWPT which is not subject to US sanctions, but is further away from the city center. Senator Cory Gardner, the Republican chairman of the US Senate Foreign Relations subcommittee on Asia, has questioned the timing of the move to lift sanctions on the port, a move that would not require congressional approval. "Any modification of remaining US sanctions toward Burma during this sensitive time would only weaken US leverage as Burma's democratic transition continues. Furthermore, Congress should be involved in any actions relating to sanctions, and I hope the administration takes that into account should it move forward," he told Bloomberg. The expected removal of the port from the blacklist will undoubtedly boost the bottom line of Asia World, which has extensive business across much of the Burmese economy. Asia World’s chief Steven Law—also known by his Burmese name Htun Myint Naing and his Chinese name Lo Ping Zhong—is the son of the late Kokang warlord Lo Hsing Han, whose time as one of the towering figures of the global narcotics trade earned him the moniker "Godfather of Heroin". Law, his father and Asia World were added to the US sanctions list in 2008. A statement issued by the US government at the time of their inclusion claimed that Law had followed Lo into the heroin trafficking business. "Steven Law joined his father's drug empire in the 1990s and has since become one of the wealthiest individuals in Burma," the statement claimed. A US diplomatic cable leaked by Wikileaks alleged that Asia World, which was founded in 1992 benefited significantly from the Lo's close to ties to Military Intelligence chief Khin Nyunt. "According to DEA [Drug Enforcement Agency] Rangoon, Khin Nyunt gave Lo Hsing Han a 'concession' for heroin production and trade in return for his help brokering a ceasefire agreement," the cable stated, referring to a peace deal negotiated between the former military regime and the Myanmar National Democratic Alliance Army (MNDAA), itself a Kokang offshoot of the defunct Communist Party of Burma. Asia World's numerous construction projects over the course of the 1990s, often underwritten by investors from Singapore or Malaysia, include Rangoon’s iconic Traders Hotel. According to The Economist's 2013 obituary of Lo Hsing Han, by 1998, more than half of Singapore's US$1.3 billion of investments in Burma were made in partnership with Asia World and its affiliates. In the final years of Snr-Gen Than Shwe’s military regime, Asia World also joined up with Chinese state-owned firms on two of Burma's biggest construction projects—the Shwe gas pipeline, connecting the Arakan coast to China's landlocked Yunnan province, and the suspended Myitsone hydroelectric dam in Kachin State, an immensely unpopular development focused almost exclusively on serving China's huge electricity needs. UK Firm Scrubbed Asia World’s Wikipedia Page A lengthy story in the Wall Street Journal published in August revealed that Asia World had hired the UK based PR firm Bell Pottinger for its services. The PR firm has a reputation in the industry for taking on controversial clients, including the government of Belarus and the wife of Syrian dictator Bashir al-Assad. Mark Canning, a former British Ambassador to Burma, is a member of Bell Pottinger's Asia team. In an effort to help improve Asia World’s disreputable image, "Bell Pottinger executives say they amended Asia World's Wikipedia page, removing references to drug connections and sanctions," the WSJ reported. Bell Pottinger has a history of removing unflattering content from the Wikipedia pages of its clients, leading to public rebuke by Wikipedia founder Jimmy Wales, who accused the firm of "ethical blindness". According to the same WSJ story, Asia World’s relationship with Bell Pottinger was terminated last year. The report cited a figure familiar with the deal, who claimed that "Asia World wasn't prepared to be as transparent as the public-relations firm hoped." The WSJ also reported that Asia World had won a $300 million government contract to upgrade Rangoon’s airport, despite the fact that a rival bid put forward by a Japanese-led consortium was ranked higher by an independent government consultant. Government officials justified granting the contract to Asia World, which operates the airport already, because the firm was "willing to spend money on the project before a contract was signed, unlike foreign bidders." Asia World Chief's Jade Trade Ties A report released in October by London-based NGO Global Witness alleged that Stephen Law had an interest in Burma’s lucrative jade trade through his Yadanar Taung Tann Gems firm. When Law traveled to Canada last year as part of a Burmese government trade delegation, he participated under his Chinese name as the managing director of the little known firm. According to Global Witness, a government registry of Burmese firms also listed Law as managing director and a shareholder of the firm, alongside another director listed as "Mr Asiaworld". Research by Global Witness found that Yadanar Taung Tann controls a large jade mine at Met Lin Chaung, west of Hpakant town. Individuals involved in the jade trade interviewed by Global Witness also said that the firm controls mines in the Gwi Hka area south of Hpakant. Government maps obtained by Global Witness show that he Gwi Hka Joint Venture is held by Dagon Yadanar Gems Co. Ltd, a firm which Global Witnesses said is controlled by two of Yadanar Taung Tann's directors. The post US Set to Ease Sanctions for Asia World Port in Rangoon appeared first on The Irrawaddy.

‘Time for Change’ in Burma’s Opium Country? Posted: 07 Dec 2015 01:35 AM PST Click to view slideshow. PEKHON TOWNSHIP, Shan State — Selling "change" to voters leading up to Burma's Nov. 8 election, the campaign of the National League for Democracy (NLD) has reached deep into the heart of opium poppy-growing country in southern Shan State, where the plant's sticky resin is also known as "black gold." For farmers here, it is hoped that this will mean a more concerted effort by the incoming government to introduce alternative sources of income to replace poppy growing, which fuels the heroin trade across much of the region. "As [NLD chairwoman] Daw Aung San Suu Kyi has said, 'It is time for change.' We also want to change. We no longer want to grow poppy. But there is the question of how?" said a 60-year-old poppy grower in Pekhon Township, speaking on condition of anonymity. "Among the crops we grow now, only poppy provides us with a secure livelihood. If we don't grow poppy, what should we do for a living?" Before 2010, poppy growers here used to grow onions, potatoes, corn and rice. These crops all grew well, but when sold to the town markets, they did not fetch adequate prices and growers suffered hardship as revenues failed to cover labor and transportation costs. Under the current government, poppy substitution programs have been little more than lip service to the cause of opium eradication, locals say. As the number of poppy growers in Burma has grown and production has increased, opium prices have seen a steep decline. The price of raw opium has dropped to around 450,000 kyats (US$345) per viss this year, from around 700,000 kyats per viss in 2013, with one viss equal to about 3.6 pounds. The last decade has seen a steady rise in poppy cultivation, a trend that leveled off last year for the first time since 2006, according to the UN Office on Drugs and Crime (UNODC). In 2014, a total of 57,600 hectares were under opium poppy cultivation, the UNODC said, making Burma the world's second largest producer after Afghanistan. The politics of poppies made its way into the rhetoric of Union Solidarity and Development Party (USDP) campaigns here, some growers of the plant allege, with some candidates for the ruling party accused of using scare tactics to win votes. The consequence of electing an NLD government was said to be the forcible end of poppy growing in a region where financially viable alternative livelihoods are lacking. But at least in Pekhon Township, where the NLD won all four seats at play, the Nov. 8 vote appears to have been a rejection of fear-mongering in favor of turning over a new leaf, as it were. "We don't mind that we will not be able to grow poppy when the NLD government comes to power. We believe [an NLD-led government] will be more responsible and accountable than the current government," said a 40-year-old poppy grower who supports the NLD, also speaking on condition of anonymity. Growers here know that opium production is harmful to society, but their role in the global narcotics trade is rarely something they have the luxury to consider the ethical implications of, when there are mouths to feed, children to clothe and few paths to an alternative income at parity with poppy cultivation. A more robust crop substitution effort, combined with secure markets for the harvest, are just a couple of the wish-list items that farmers say could help this region move toward poppy-free agriculture. It appears, for now at least, that among the farmers of southern Shan State, this would be viewed as a welcome change. The post 'Time for Change' in Burma's Opium Country? appeared first on The Irrawaddy.

China Military Told to Hold Tongues on Reform Concerns Posted: 06 Dec 2015 09:34 PM PST   New recruits to the People's Liberation Army shout slogans as they march during a training session in cold winter temperatures at a military base in China's Heilongjiang province on Nov. 29. (Photo: Reuters / China Daily) BEIJING — High-ranking officers in the Chinese army must hold their tongues about concerns over military reform and lead from the front to ensure the rank and file are on board, the People's Liberation Army said on Monday. President Xi Jinping unveiled a broad-brush outline of the reforms last month, seeking further modernization of the command structure of the world's largest armed forces, including job losses, to better enable it to win a modern war. Xi is determined to modernize at the same time as China becomes more assertive in its territorial disputes in the East and South China Seas. China's navy is investing in submarines and aircraft carriers, while the air force is developing stealth fighters. The reforms, kicked off in September with Xi's announcement he would cut service personnel by 300,000, have been controversial. The military's newspaper has published a series of commentaries warning of opposition to the reforms and worries about lost jobs. In a front-page commentary in the People's Liberation Army Daily, the military's political department, in charge of ideology and ensuring loyalty to the ruling Communist Party, said the success or failure of reform depended on top officers "leading from the front and setting a fine example." "It is forbidden to speak nonsense, make irresponsible comments, have your own points of view, act as you see fit or feign compliance," it said, in a piece also carried in the party's official People's Daily. Special attention must be paid to what ordinary soldiers think and sensitive subjects "effectively resolved," it added. "[You] must organize and manage well public opinion, especially on the Internet, and fight an active battle to create a good atmosphere for promoting reform," the piece said. Xi's reforms include establishing a joint operational command structure by 2020 and rejigging existing military regions, as well as cutting troop numbers. The military commentary said that the reforms were unprecedented in their scope and for the interest groups they touch upon. "Deepening military reform is a big test that cannot be avoided, and we have begun our assault and entered deep waters," it added. The post China Military Told to Hold Tongues on Reform Concerns appeared first on The Irrawaddy.

In India, Modi Mocked and State Leader Heckled after Floods Posted: 06 Dec 2015 09:25 PM PST A couple in Chennai sits along a flooded roadside on Sunday under a picture of Jayalalithaa Jayaram, chief minister of Tamil Nadu. (Photo: Anindito Mukherjee / Reuters) CHENNAI, India — One of India's most powerful politicians, a former movie star called "Amma" or "Mother" by her followers, is being heckled and abused for going missing in action after floods swept the capital of the southern state of Tamil Nadu, which she rules. It's a salutary lesson for Prime Minister Narendra Modi, who at first drew nods of approval when he rushed to Chennai last week, promising to stand by its people in their hour of need. Yet, within hours, Modi became the object of mockery on social media after his press office released a doctored photo of him inspecting flood damage. For both him and Tamil Nadu Chief Minister Jayalalithaa Jayaram, the image of strong leadership created by their publicity machines was undermined. Until the floods that ravaged the city of 6 million, the lofty remoteness of Jayalalithaa added to the aura around a leader with an almost hysterical following. Devotees of the 1960s screen idol have immolated themselves in her defense in the past. Now, she faces a backlash from residents fed up with the sight of her image on billboards, aid packets and her own Jaya Plus TV channel. She has been seen in public only twice during the crisis—once with Modi. Angry youths heckled a state minister and officials in Jayalalithaa's north Chennai constituency, where people were sitting on the roadside amid sludge and mountains of garbage, their shanties swept away by the worst rains in a century. "Forget about Amma coming here, there was no sign of the party cadres," said one of them, called Dorairaj. About 280 people have died across Tamil Nadu since torrential rains on Dec. 1 submerged tracts of Chennai under up to eight feet (2.5 meters) of water, trapping people on rooftops with no communication. There was further revulsion after a party legislator put up a poster of Jayalalithaa lifting a baby above the floodwaters, in a scene from a blockbuster movie. "Adding salt to the wounds," said one Twitter post. Avadi Kumar, a spokesman of her ruling AIADMK party, said there was anger among the people but the administration was doing all it could to bring relief: "It is impossible to reach all areas immediately or be present everywhere at all times." Good Days Modi's own promise to voters of good days to come for India is also starting to face disenchantment, 18 months into his five-year term, with key reforms stalled by bureaucratic inertia and political gridlock. Ambitious initiatives, such as a "Clean India" campaign, have made little headway—even as Modi has built up huge followings on social media and addressed enthusiastic diaspora Indians at packed stadiums on his many trips overseas. "If today he appears to have lost control over his own narrative, it is his own fault," commentator Tavleen Singh wrote in Sunday's Indian Express, urging Modi to hire a professional media team. Modi does not have an official spokesperson. Jayalalithaa, 67, in the past considered as a possible prime ministerial candidate backed by regional groups, faces an election in Tamil Nadu next year. Modi's nationalist party has little presence in Tamil Nadu, a state of 70 million. It would rather the iron-fisted Jayalalithaa stays in power, believing she is more inclined to back his reform agenda in parliament than her rivals. But there are concerns around her health and that she may have to curtail her campaign. Earlier this year a higher court acquitted her in a graft case for which she was briefly jailed which had caused an outpouring of anger from her supporters. Some lay down on roads and tried to persuade bus drivers to go over them. "She is supposed to be a fantastic administrator. But this time there was no presence of government at all. Ordinary people did all the work that government and police were supposed to do," said S. Raja, one flood-hit resident of Chennai. The post In India, Modi Mocked and State Leader Heckled after Floods appeared first on The Irrawaddy.

Philippine Crime-Fighting Mayor Tops Opinion Polls for President Posted: 06 Dec 2015 09:13 PM PST Rodrigo Duterte walks with his supporters during his proclamation ceremony as a presidential candidate held at a hotel in Manila. (Photo: Romeo Ranoco / Reuters) MANILA — A tough-talking, seven-term mayor, who has built a reputation for fighting crime in the insurgency-plagued southern Philippines, has become favorite to succeed President Benigno Aquino in May elections, an opinion poll showed on Monday. Rodrigo Duterte, 70, mayor of Davao City, was the top-rated contender for 38 percent of 1,200 respondents, the Social Weather Stations poll said. Senator Grace Poe, who topped surveys in June and September, slid down to second spot with 21 percent in a tie with Vice President Jejomar Binay, who led opinion polls early this year. Poe had 26 percent support in September and Binay had 24 percent. Poe last week was barred for running because she fails to meet the 10-year residency requirement but she is hopeful that the decision will be reversed on appeal. The elections will be closely watched by investors, who fear the political succession in one of Asia's fastest-growing economies could derail gains made during Aquino's rule. Under Aquino, the Philippines has seen annual economic growth of more than six percent on average, its best five-year record in four decades. He has also battled to rein in corruption. About 54 million Filipinos are eligible to vote to choose a president, vice president and more than 18,000 local government executives and lawmakers in the general elections, which happen every six years. Aquino's chosen successor, former interior minister Manuel "Mar" Roxas, was fourth in the poll, falling from 20 percent support in September to 15 percent. Political analysts said the rise in support for Duterte could be attributed to his anti-crime crusade. As mayor, Duterte has turned around the reputation of Davao, once one of the most crime-plagued cities in the country. The post Philippine Crime-Fighting Mayor Tops Opinion Polls for President appeared first on The Irrawaddy.

The Irrawaddy Business Roundup (Dec. 5, 2015) Posted: 04 Dec 2015 06:37 PM PST People watch a 3D movie at the Mingalar cinema in Rangoon on April 19, 2012. (Photo: Reuters) Towers Market Could See Consolidation as New Telcos Enter  Large regional companies recently entering Burma's mobile phone tower sector may look to acquire smaller tower companies already operating in the market, analysts have predicted. Malaysia-based Axiata, a major regional telecoms player that failed in a bid to win one of the first two private telecommunications licenses issued by the Burmese government in 2014, has announced major new investment plans in the country. The group's towers subsidiary Edotco recently bought out Digicel's 75 percent stake in the Myanmar Tower Company, which has built cell phone masts for Ooredoo. According to Bloomberg, Edotco may spend as much as another US$200 million in Burma, and plans to scale up to 5,000 towers, from the Myanmar Tower Company's 1,250 existing towers. In an update sent out this week, analysts BMI Research said Axiata is also one of the foreign companies hoping to team up with a consortium of 11 local firms bidding to win a new mobile phone license being awarded by the government. The other license is held by the former monopoly holder Myanmar Posts and Telecommunications, or MPT, while a military-owned company also operates under the brand MecTel. Another Malaysian conglomerate, OCK Group, also signed a deal last month to build towers for Telenor, helping that company toward a goal of about 9,000 towers in order to expand coverage to 90 percent of the population by 2019, a target written into the private telcos' contracts. BMI Research said the difficulties of building mobile networks in more remote parts of Burma, where the electricity grid is patchy, means that the costs of building telecoms infrastructure are higher than elsewhere. By way of an example, the analysts said Edotco's lease rates for towers in Burma average between $1,400 and $1,700, compared with just $600 in India. "Whilst ample opportunities remain in the towers market with the impending entrance of a fourth operator and launch of 4G services potentially boosting tenant ratios, it could be headed towards consolidation as Telenor and Ooredoo consider infrastructure sharing to reduce [capital expenditure] and speed up their network rollout process," the update said. It pointed out that several other private companies were already leasing towers to the mobile phone companies, including Apollo Towers, Irrawaddy Green Towers, Pan Asia Towers and Myanmar Infrastructure Group. "Smaller tower companies, which have not been re-contracted, could become acquisition targets for larger regional players like Edotco, which can leverage experience and benefit from lower operational costs through scale to meet rollout targets," BMI Research said. Suu Kyi Advisor Hints at Red Tape-Slashing Reforms A Hong Kong-based lawyer who advises National League for Democracy (NLD) chairwoman Aung San Suu Kyi has suggested that cutting regulations for business in Burma will be among the economic priorities of the new government. Suu Kyi's party won enough seats in the Nov. 8 election to select the president and one vice president, and will form a government early next year. While the military will retain control of certain ministries dealing with the country's security, policing and borders, the NLD will be able to take the reins of the country's economic reforms. Robert Pé, an arbitration lawyer who is of Anglo-Burmese heritage, was interviewed by the Hong Kong-based South China Morning Post about what needed to be done to kick-start the Burmese economy. His comments suggest that the party will begin by easing the bureaucratic red tape that he claims has stifled business in Burma up to now. "Firstly, there are too many regulations. You have to get permits or permissions for just about everything," Pé was quoted saying. "We need to reduce the amount of regulation and just make it easier for businesses to operate, both foreign and domestic businesses." He highlighted the rules that require foreign companies to register with a police station when setting up an office, and the difficulties for foreign businesses, particularly small enterprises, in getting secure access to land and property. Pé also told the South China Morning Post that bribery should be tackled by increasing salaries for civil servants, including judges. "We need to make it much easier for domestic and foreign investors. That's why reducing regulation is key and reducing bribery is also key," he was quoted saying. Ministry of Commerce Allows JVs to Trade Agricultural, Medical Products Burma's Ministry of Commerce has issued an announcement saying fertilizers and insecticides, as well as some medical products, may now be traded by foreign companies in joint ventures with local firms, according to a report. The government of President Thein Sein has initiated reforms to open up some sectors of Burma's economy to foreign companies. Many sectors remain closed to investment from overseas, however, with local companies fearful that they will not be able to compete if larger players from abroad are allowed into the market. The website Deal Street Asia cited a ministry announcement listing a handful of product types that were now approved for trading by joint ventures: fertilizers, seedlings and insecticides, and hospital and clinical materials. "According to the notification, only foreign companies that set up joint ventures with local firms will be allowed to trade equivalent to the capital they bring to the country," Deal Street Asia reported. "The rules and regulations of the trading will be the same as for the local companies doing the trade." Pakistani Online Ticketing Start-Up Coming to Burma Burmese cinemagoers will soon be able to book movie tickets through their mobile phones, thanks to a team up between a Pakistani start-up and a local firm. The website Tech in Asia reports that online booking platform Bookme has announced that it will enter Burma, in partnership with Rangoon-based Lychee Ventures, which currently publishes magazines and guides under the Myanmore brand. Bookme.pk allows mobile internet users to book tickets for movies, events and buses, and the firm has reportedly raised some $4 million in investments. Tech in Asia said Bookme will begin in Burma soon, initially focusing on cinema ticketing. "For now, Bookme will offer cinema tickets to two outlets—[Mingalar] Cinemas and JCGV cinemas, with others to follow," the report said. According to its Facebook page, Mingalar Cinemas operates 10 cinemas, including downtown Rangoon's Thamada, Nay Pyi Taw and Shae Saung theaters. JCGV runs theaters in the Junction shopping complexes, including the Junction Maw Tin and Junction Square malls in Rangoon. Bookme's CEO, Faizan Aslam, was quoted by Tech in Asia saying that the current boom in mobile phone subscriptions in Burma meant there was "tremendous potential" for growth in the online ticketing sector. The post The Irrawaddy Business Roundup (Dec. 5, 2015) appeared first on The Irrawaddy.

Trade Revenues Down Following Kyat’s Decline Posted: 04 Dec 2015 04:20 AM PST A staff member hands a stack of kyats to a colleague at a bank in Rangoon. (Photo: Minzayar / Reuters) RANGOON — Burma's total trade volume has declined in value for the first time since the switch to quasi-civilian rule, largely a result of the long and seemingly inexorable slide of the local currency. For the first eight months of the 2015-16 fiscal year, from April to November, total imports were valued at US$9.8 billion and total exports were $7.2 billion. The figures mark a slight decline against the same period in 2014 imports were $10.1 billion while exports were $7.3 billion, according to the ministry. The kyat has declined significantly against the greenback since November 2014, losing 26 percent of its value in the past 12 months, and is currently trading at around 1300 to the US dollar. The figures suggest a rise in total trade volume of between 10 and 17 percent on the previous year's figures, even as headline revenues declined. Win Myint, director of the Commerce Ministry's Department of Trade Promotion, said much of the shortfall was explained by a decline in jade sales to overseas buyers over the current fiscal year. "Total jade export volume is significantly down," said Win Myint, "Among imported items, cooking oil, diesel and other petroleum products have also declined." A total of $820 million in total jade exports were reported in the current fiscal year to the end of November, a decline from $1.1 billion for the same period last year. Taking into account the kyat's depreciation, the ministry's figures suggest a drop in jade export volume of at least 25 percent. Much of Burma's jade trade takes place in the black market, outside of the government's official jade emporiums and away from the ministry's purview. A Global Witness report into the industry, released last month, alleged that members of the former military junta, tycoons connected with the previous regime and military-owned conglomerates had profited handsomely, with total industry revenues as high as $31 billion dollars in 2014. Despite massive flooding across the country in July and August, export values held firm over the year, despite a decline in agricultural export volumes. A temporary export halt for rice lasted for more than two months in the wake of the flooding crisis, while other agricultural goods saw an export decline across the board. Hnin Oo, senior vice president of the Myanmar Fisheries Federation and fisheries exporter, told The Irrawaddy that despite the narrowing of the trade deficit over the current fiscal year, he expected the gulf between import and export values to grow wider before the end of March. "Business leaders are still waiting to see what happens when the next government takes office," he said. "The next government will have to make a strategic plan for promoting export items, or the deficit will get larger." He added that local manufacturers in small and medium enterprises were still suffering from structural problems arising from lack of access to finance, lack of infrastructure, and issues with government policies. Import volume of electronics, agricultural equipment, automobiles and other manufactured goods rose over the current fiscal year, to a total value of $4.6 billion against $4.1 billion for the same period in 2014. Despite the local currency decline, the government is forecasting total trade volume to rise to $29 billion by the end of this fiscal year, up from $28 billion in 2014-15.       The post Trade Revenues Down Following Kyat's Decline appeared first on The Irrawaddy.

Double Cop Killer Sentenced to Death in Rangoon Posted: 04 Dec 2015 03:38 AM PST Police officers attend the funeral for two of their fallen colleagues, Col. Aung Naing and Cpl. Thura Lwin, in Rangoon's Thanlyin Township on Sept. 4, 2015. (Photo: Hein Htet / The Irrawaddy) RANGOON — Rangoon's Southern District Court on Friday handed down the death penalty to a man found guilty of murdering two police officers earlier this year in Thanlyin Township, according to police officer Maung Maung Than, who escorted the accused to trial. The convicted killer, Tin Myint, stabbed Col. Aung Naing and Cpl. Thura Lwin to death on the outskirts of the commercial capital on Sept. 2. "The judge sentenced him to hang this morning, I transferred him to Insein Prison [afterward]," Maung Maung Than told The Irrawaddy. The defendant was found guilty of all three charges brought against him, including Article 302 covering murder, which carries with it a maximum sentence of life imprisonment or death by hanging. Citing police records, local media reported that Tin Myint was born in Waw Township, Pegu Division, and from a young age ran repeatedly afoul of the law, including a 1990 murder conviction that earned him a life sentence. He was granted an amnesty in 2008, according to local reports, but found himself behind bars again three years later, convicted of multiple criminal offenses including robbery, theft and attempted rape. Serving a 20-year sentence for those charges, he was again released in a 2014 amnesty. Though capital punishment remains on the books in Burma, it is considered "abolished in practice," according to Amnesty International, with no known executions having taken place since 1988. According to Amnesty, a total of 55 death sentences were nonetheless handed down by Burmese courts from 2007-2014. President Thein Sein in January 2014 commuted the sentences of all convicted killers on death row to life imprisonment or lesser prison terms. One man has received the death penalty since the blanket commutation, according to Myat Soe, a police officer with the Southern District Police's criminal department, who said the sentence was meted out over the brutal slaughter last year of a woman in Rangoon's Twantay Township. The post Double Cop Killer Sentenced to Death in Rangoon appeared first on The Irrawaddy.

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