Friday, January 15, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine


USDP Member Khin Shwe Defends His Support for Suu Kyi

Posted: 15 Jan 2016 05:19 AM PST

  Khin Shwe, Chairman of Zaykabar Company, poses for photo after an interview with Reuters in his office in Rangoon, November 12, 2015. (Photo: Reuters)

Khin Shwe, Chairman of Zaykabar Company, poses for photo after an interview with Reuters in his office in Rangoon, November 12, 2015. (Photo: Reuters)

RANGOON — Khin Shwe, a distinguished member of the Union Solidarity and Development Party (USDP), has disavowed rumors that he is facing expulsion from the party over his support for the opposition in a Nov. 8 general election.

Speaking to The Irrawaddy on Friday, Khin Shwe confirmed that he was summoned by party officials for questioning a week before the election, when he publicly declared his support for Aung San Suu Kyi, but that he had not received any indication of further action from the USDP and that his future within the party remains unclear.

Himself an elected representative for the Upper House in Kawhmu Township, on polling day Khin Shwe cast a ballot in favor of Aung San Suu Kyi to represent his constituency in the Lower House.

"I voted for Daw Aung San Suu Kyi because she was contesting the Lower House, and I contested the Upper House," he told The Irrawaddy shortly after he cast his vote in November. "Then I voted for my party's candidates for the [Rangoon] divisional parliament."

Asked on Friday whether he regretted either voting for Suu Kyi, the leader of the National League for Democracy (NLD), or admitting it publicly, he replied that there was "nothing to have regrets about."

It would be "no problem at all" if he were cut loose from the USDP, he said, as the term of the current government will come to an end in late January.

Khin Shwe is the owner of the Zaykabar Group of Companies, and his daughter is married to the son of Parliament Speaker Shwe Mann. Shwe Mann, who was ousted as USDP chairman in a surprise upset last year, is also viewed as an ally of Suu Kyi.

Regarding rumors that the Speaker could also face expulsion, Khin Shwe said that he did not know of any such plan to further ostracize the former party strongman.

Aung San Suu Kyi's NLD party won a decisive victory in the November polls, granting them a majority in both houses of Parliament and the power to select the next president.

She herself is ineligible for the post due to a clause—which is believed to have been written precisely to exclude her—disqualifying those with a foreign spouse or children. She has stated her intention to rule "above the president."

The post USDP Member Khin Shwe Defends His Support for Suu Kyi appeared first on The Irrawaddy.

Dozens of Tax Officials Busted for Graft Under Thein Sein Govt: Source

Posted: 15 Jan 2016 05:07 AM PST

Burma consistently ranks poorly in global assessments of corruption in government. (Photo: Reuters)

Burma consistently ranks poorly in global assessments of corruption in government. (Photo: Reuters)

RANGOON — More than 30 members of the Internal Revenue Department in Naypyidaw have been expelled or disciplined over the past five years for corruption, a senior department official has said.

"All of these cases have been in connection with bribery and corruption," the source said.

Between 2011 and 2012, nine staff members were expelled and another 14 punished and prevented from advancing their careers within the department. This number declined between 2013 and 2015, however, when only four people were expelled and disciplinary action taken against another six.

Burma consistently ranks poorly in global assessments of corruption in government.

In June 2015, National League for Democracy (NLD) leader Aung San Suu Kyi called on the party's election candidates to be open about their personal assets, including bank account details, business interests, investments and immovable property.

Only one month before the NLD is set to form the new government, the results of this move, seen by many as an implicit criticism of the ruling Union Solidarity and Development Party (USDP), have yet to be made public.

"We just want to show that the NLD has transparency. If they [NLD members] can't reveal their assets, how can people rely on them?" Suu Kyi said last year.

"We will do this because people who are going to work for the country have to be free from corruption. I want to know that a candidate is not interested in the good of themselves and their families but only for the country."

The post Dozens of Tax Officials Busted for Graft Under Thein Sein Govt: Source appeared first on The Irrawaddy.

Judge Demands Evidence in Ranong Murder Case

Posted: 15 Jan 2016 04:32 AM PST

Kyaw Soe Win, Wai Lin, Sein Kadone and Moe Zin Aung (from right to left) are seen with their families last year. (Photo: Min Oo / FED)

Kyaw Soe Win, Wai Lin, Sein Kadone and Moe Zin Aung (from right to left) are seen with their families last year. (Photo: Min Oo / FED)

A judge in Thailand's Ranong Province has ordered that evidence be presented within nine days in order to charge two 15-year-old Burmese migrants accused of involvement in the fatal September stabbing of a Thai woman.

The court ordered that the two minors—Moe Zin Aung and Kyaw Soe Win—be transferred to juvenile detention, while the two other migrants facing trial will remain in prison pending their trial. All four have been detained without charge since their arrest in October of last year.

The provincial court accepted the case against the four migrants earlier this week. The two adult suspects—Wai Lin and Sein Kadone—will appear in court on Jan. 18 for their arraignment.

Ei Ei Moe, the mother of Moe Zin Aung, told The Irrawaddy on Friday that if police do not present evidence within nine days, "the judge said he would release the two boys."

The judge also ordered police to respect the rights of the two minors, reminding the officers that "Burmese are also humans," Ei Ei Moe said.

Suspects in the case worked on fishing trawlers in Thai waters to support their families back home. Their arrests caused controversy amid a forced reenactment of the crime, an irregular search at one suspects' home and allegations of torture during interrogation.

The case is expected to be highly scrutinized, as it follows closely after a death sentence was handed down to two Arakanese migrant workers convicted of murdering two British tourists on Koh Tao, an island in southern Thailand. The verdict in the case was viewed as highly suspect and the penalty the subject of international outrage.

The post Judge Demands Evidence in Ranong Murder Case appeared first on The Irrawaddy.

Kachin IDP Youths Share War Hardships With NLD Patron

Posted: 15 Jan 2016 04:26 AM PST

National League for Democracy patron Tin Oo listens in Rangoon as youths displaced by conflict in northern Kachin State share their experiences. (Photo: Hein Htet / The Irrawaddy)

National League for Democracy patron Tin Oo listens in Rangoon as youths displaced by conflict in northern Kachin State share their experiences. (Photo: Hein Htet / The Irrawaddy)

RANGOON — Three Kachin youths living in camps for internally displaced persons (IDPs) outside Myitkyina met National League for Democracy patron Tin Oo and the NLD's Education Network on Friday at party headquarters in Rangoon, where the trio shared their familiarity with the hardships of war.

"We don't want war. We don't want fighting between us," a tearful Lu Htoi told Tin Oo as the 15-year-old recounted her experiences at the Shwe Zet IDP camp outside the Kachin State capital.

Lu Htoi, an eighth grade student, expounded on the economic toll that the conflict has taken on her family.

"People living as war refugees have difficulties. I feel small living at others' village and attending others' school. As our parents do not have money, they could not give us pocket money to buy snacks. When we told our parents, they felt sad," she said, adding that day jobs could earn her parents between 3,500 kyats to 4,000 kyats, the equivalent of about US$3.

"It's not enough for family food and pocket money for children."

Zau Kham, also 15 but from the Mai Na IDP camp, said the Kachin conflict forced his family to leave farmlands behind, trading that life for one in which even finding firewood can be a struggle.

"Even if there was no war, if we could go back to our village, we are worried about landmines buried nearby our village," he said.

Schooling, too, is a challenge.

There is a school for fifth to eighth graders at the Mai Na camp, but the space is not enough for all students, requiring them to break their collective education down into staggered shifts.

"In the rainy season, as our school is in lowlands, it floods. We have to study in standing water."

Tin Oo told the IDPs that the incoming government, led by NLD chairwoman and Nobel Peace Prize laureate Aung San Suu Kyi, would make peace its top priority.

"If there is no peace, we can't do anything, neither projects nor development work," he added.

Acknowledging the suffering of civilians caught up in the conflict, not just children but also the elderly and sick, Tin Oo described economic self-interest among the warring parties as one of the biggest barriers to peace.

About 2,400 IDPs have been living for more than four years at the Mai Na and Shwe Zet IDP camps. The three young envoys for the camps travelled to Rangoon for the Wa Madai Pan Chyang (Black Orchids) exhibition in Rangoon, a showcase of photos taken by Kachin IDP youths.

The photos and accompanying texts were the result of a 10-day photography and storytelling workshop organized by the Insightout! Project for the past two years, at the two camps and Mai Ja Yang's Unlung Boarding School for IDPs.

Jeanne Marie Hallacy, director of the film "This Kind of Love," was involved in the project and described it as more than a typical exhibition.

"This event, the black orchids story and photo exhibition, is the combination of these workshops and it's not an exhibition but an event, because these youth ambassadors are here to speak on behalf of everyone in their schools, their families, villagers," she said.

"So, in this time, when the government is convening talks about how to keep sustainable peace in Myanmar, in Naypyidaw, they are here as a way to highlight the fact that there are still tens of thousands of displaced persons in Myanmar who are waiting for an opportunity to have a peaceful return home."

The exhibition of 57 photos, taken by young Kachin IDPs aged 11 to 16 years old, portray daily life in these conflict-affected communities, and will launch at 6 pm on Saturday at the Pansodan Scene art gallery in downtown Rangoon.

Pansodan Scene is located at 144 Pansodan Street, 2nd Floor, near the corner with Mahabandoola Street in Kyauktada Township.

The post Kachin IDP Youths Share War Hardships With NLD Patron appeared first on The Irrawaddy.

Twin Accidents Create Traffic Logjam on Muse Road

Posted: 15 Jan 2016 03:55 AM PST

A large truck is pictured after it tipped over along the road to Muse this week. (Photo: Facebook)

A large truck is pictured after it tipped over along the road to Muse this week. (Photo: Facebook)

RANGOON — Two accidents in as many days along the road outside Muse have left the highway blocked for more than three days, bottlenecking the main border trade point between China and Burma, according to sources near the border.

Vehicle traffic has all but ground to a halt and drivers have been forced to sleep on the road, with only a trickle of four-wheel traffic and some motorcycles able to pass through.

"I have been here [in Muse] three nights already, and still cannot go back to Yangon [Rangoon] as there are no buses traveling," a frequent traveler to Muse told The Irrawaddy on Friday.

The road has been blocked since Tuesday, when the first of the two traffic accidents took place, according to the source, who said he had to sleep two nights on the road to get to Muse from Rangoon.

A truck transporting a load of iron beams spilled its cargo along the road, rendering the highway largely unpassable until the mess could be removed. The following day, an 24-wheeler in neighboring Kutkai Township to the south flipped on its side and was splayed out across the width of the two-lane road.

Mahar Min, a local Muse resident, said about 50 traffic authorities were attempting to untangle the vehicular blockage on Friday.

Hundreds of heavy trucks transport goods between China and Burma every day and disruptive traffic accidents are not uncommon, but this week's logjam is notable for its duration.

The post Twin Accidents Create Traffic Logjam on Muse Road appeared first on The Irrawaddy.

Real Estate Market Braces for Possible Tax Hike

Posted: 15 Jan 2016 03:24 AM PST

Construction site in Mayangone Township, one of Rangoon's prime real estate locations.  (Photo: Hein Htet / The Irrawaddy)

Construction site in Mayangone Township, one of Rangoon's prime real estate locations.  (Photo: Hein Htet / The Irrawaddy)

RANGOON — Deputy Finance Minister Lin Aung urged Parliament on Thursday to revise the property tax paid by some buyers, despite criticism within the real estate industry.

The proposal would boost the tax imposed by the government on buyers who are unable to declare their source of income. Specifically, it would levy a 15-percent tax on declarations up to 30 million kyats (US$23,000), a 20-percent tax on declarations between 30 and 100 million kyats, and a 30-percent tax on all higher declarations.

Just last April, the government had set the rate for this particular income bracket at 3 percent for up to 100 million kyats.

Than Oo, vice chairman of the Myanmar Real Estate Association, said that while such a tax increase might not immediately impact the real estate market, more dramatic effects would likely kick in once the market was back on a track to full health.

"You can't compare this to income and sales tax rates, the latter of which depends on the market. I don't think the market will be able to support a tax increase," Than Oo said.

Demand for high-end property in commercial centers such as Rangoon has seen a steep decline in recent years, even though prices have remained high. At least in part, this can be attributed to the wait-and-see attitude many landowners have adopted toward Burma's political situation.

"After a new government has been formed, the property market might change. And at that time, we'll see harm done to the market due to the tax increase on property buyers," Than Oo said.

Zaw Zaw, senior manager of Unity Real Estate Agency, echoed the warning, adding that he did not think it a good idea to collect tax from property investors based other people's income tax.

"As we all know, Burma's property market is in decline right now. How can the government try to collect tax without any real demand in the market?" he said.

Zaw Zaw added that there is only demand in Rangoon in suburb areas, including North Dagon, South Dagon and small townships, where property is worth less than 100 million kyats. Rangoon's highest value properties are located in six downtown townships, Lanmadaw, Latha, Pabedan, Kyauktada, Pazundaung and Botahtaung, as well as along main roads.

"We wouldn't see an immediate impact because of a tax hike. I think the impact would be felt in the long run," he said.

"Prices aren't falling, and on top of that, demand is significantly down."

The post Real Estate Market Braces for Possible Tax Hike appeared first on The Irrawaddy.

Trouble Brewing Over Tuborg Terminology

Posted: 15 Jan 2016 03:15 AM PST

  Tuborg products in Burma. The label reads

Tuborg products in Burma. The label reads "Tu Po Beer" in Burmese. (Photo: Zarni Mann / The Irrawaddy)

MANDALAY — Each April, as Burma's favorite festival nears, the sound of a familiar tune can be heard through loudspeakers and car radios: Tupo Tupo.

The beloved tune, written by Mandalay's Myoma Nyein, has become synonymous with Thingyan, the water festival celebrating the Burmese New Year. The title, Tupo, was derived from the sound of Burmese drums and gongs played throughout the holiday. The well-known musician was surprised last year when, sometime in April, a new beer was being advertised with an uncanny name.

In English you might know it as Tuborg, a Danish brew owned by the Carlsberg Group. As Myoma Nyein's family recalls, the company had approached the family to discuss using the name of the song as the transliterated version of their brand. The family says they met with representatives of Carlsberg Myanmar four times since 2014, and every time the family said no.

"I always denied them the use of the name 'Tupo'," said Shwun Myaing, Myoma Nyein's son, speaking to reporters in Mandalay on Friday. "I asked them after our last meeting, and their brand manager said they would not begin production and they would try to meet with us again."

The family alleged that the company's advertising used the name Tu Po to capitalize on the song's popularity around the beer's launch, which coincided with the festival. Later in 2015, they said, cans and bottles were produced with labels reading "Tu Po Beer."

The Burmese script on the product and the advertising is identical to the song title, which the family took issue with, especially because there is a Burmese character sounding more like the Roman letter "b," which they believed would make for a more accurate transliteration.

"They could have spelled it in Burmese using 'Bo' instead of 'Po,' but they just used the well-known 'Tu Po' to win over the market," Shwun Myaing said, "especially around Thingyan. If they did it by mistake, that would be forgivable. But they met with us, and despite our disapproval, they used it anyway."

The family said they plan to notify the Carlsberg Group's Rangoon Office with an ultimatum: Change the spelling within one week, or face the courts. Admittedly, an intellectual property case against an international corporation in a country with loose laws might not be much of a threat, but Myoma Nyein's family wanted to make sure their point was heard.

"Since we don't have a proper copyright law, we know we're going to lose the case," said Zaw Myo Oo, the songwriter's grandson, "but we are doing this for every Burmese person losing their copyright due to a lack of rule of law."

Myoma Nyein's fans have also chimed in on the Tu Po debacle, overwhelmingly to his defense. Theik Tun Thet, a respected Mandalay author and a devotee of the songwriter, said that the company, Carlsberg, "surely knew that they would have problems" if they used the name Tu Po.

"That's why they met with Myoma Nyein's sons," he said.

"If they were being honest, they wouldn't transliterate it as Tu Po, which is pronounced completely different [from Tuborg]," he added. "Now Myoma Nyein's song is the name of a beer, and Thingyan festival will seem like a beer-drinking festival."

When contacted by The Irrawaddy on Friday, Carlsberg Myanmar marketing director Birgette Weeke said the upset was the result of a misunderstanding.

"It's quite late to do the changes as it has been on the market for a long time," Weeke said. "However, we never wanted to offend anybody, so we will contact the family immediately to resolve the matter and, of course, we will take any appropriate action."

The post Trouble Brewing Over Tuborg Terminology appeared first on The Irrawaddy.

Health, Safety Red Flags Shutter Mandalay Chili Sauce Factory

Posted: 15 Jan 2016 12:24 AM PST

 A picture of the blenders used in the production process at the Quail Chili Ketchup factory in Mandalay. (Photo: Facebook / Mandalay City Development Committee)

A picture of the blenders used in the production process at the Quail Chili Ketchup factory in Mandalay. (Photo: Facebook / Mandalay City Development Committee)

RANGOON — Mandalay municipal authorities have ordered a local chili sauce enterprise shuttered after discovering that the production process presented fire hazards and deeming the product itself unfit for human consumption.

A raid by the Mandalay City Development Committee (MCDC) and other municipal authorities on Thursday found few fire safety measures in place at the Quail Chili Ketchup factory in the city's Aungmyaythazan Township, with production missteps including use of hot pans on wooden floor upstairs.

"The ketchup production process was found to be using broken rice, dye and unknown chemicals rather than other relevant ingredients, like tomatoes," a statement released by MCDC said.

Products from the factory seized in the raid have been sent to Burma's Food and Drug Administration for further inspection.

The post Health, Safety Red Flags Shutter Mandalay Chili Sauce Factory appeared first on The Irrawaddy.

Burma Army Clashes with Ta’ang Rebels Amid National Day Celebrations

Posted: 15 Jan 2016 12:04 AM PST

 TNLA troops at an Independence Day celebration in January 2015. (Photo: Hein Htet / The Irrawaddy)

TNLA troops at an Independence Day celebration in January 2015. (Photo: Hein Htet / The Irrawaddy)

Ethnic Ta'ang troops clashed with the Burma Army in Shan State's Kutkai and Namtu townships on Jan. 12, in the midst of celebrations for Ta'ang National Revolutionary Day.

The Ta'ang National Liberation Army (TNLA) was celebrating its 53rd revolutionary day when Burma Army soldiers fired near Hopon village in Kutkai even after both sides had ceased engagement, an official from the armed group said.

Tar Gote Ja, vice chairman of the TNLA, told The Irrawaddy on Friday that the attack near Kutkai was likely timed to coincide with the group's celebration. Military operations in both areas have been silent in the days since the skirmishes initially erupted.

The TNLA is a member of the United Nationalities Federal Council (UNFC), an alliance whose members are boycotting the current peace conference in Naypyidaw. Members also abstained from a multilateral ceasefire with the government on Oct. 8 because it excluded a number of the country's ethnic armed groups, the TNLA among them.

The TNLA has said that it is ready to hold talks with a National League for Democracy (NLD)-led government, which will assume power in March.

The post Burma Army Clashes with Ta'ang Rebels Amid National Day Celebrations appeared first on The Irrawaddy.

From Sea to Shaker, Salt Farming Along Burma’s Southeast Coast

Posted: 14 Jan 2016 10:43 PM PST

Click to view slideshow.

PANGA VILLAGE, Mon State — Occupying more than 1,000 acres of land beside a road in Thanbyuzayat Township, the salt farms of Panga reflect a shimmering white under the tropical sun in Mon State. They are among the less conventional of various types of farms scattered along Burma's coastline, wherein the harvest is gathered from seawater.

About a two-hour drive outside the state capital Moulmein, "salt farmers" manning the evaporation ponds come into view. They only work from December to May, when there is sufficient sunlight to evaporate the accumulated seawater, leaving behind its salt.

The ponds, stretching out to the horizon, were previously manned by locals, but as much of Mon State's indigenous population has migrated to neighboring Thailand for more lucrative work, most of the sea salt farmers in Panga these days are from the Irrawaddy Delta.

The post From Sea to Shaker, Salt Farming Along Burma's Southeast Coast appeared first on The Irrawaddy.

Constitution Drives Wedge Into Peace Dialogue

Posted: 14 Jan 2016 10:27 PM PST

  Ethnic leaders queue to register during talks between the government, army and representatives of ethnic armed groups in Naypyidaw on January 12, 2016. (Photo: Reuters)

Ethnic leaders queue to register during talks between the government, army and representatives of ethnic armed groups in Naypyidaw on January 12, 2016. (Photo: Reuters)

NAYPYIDAW — Fundamental rifts emerged as more than 700 representatives of ethnic armed groups, political parties, civil society, the government and the Burma Army convened for a fourth day of political dialogue in the capital Naypyidaw on Friday.

Thursday's talks, which focused largely on issues of federalism, wound down with a feeling of skepticism among many ethnic representatives, as the Burma Army stood by its demand that the 2008 Constitution be kept as the cornerstone of political decisions related to defense and security.

The military-drafted charter has been a recurrent obstacle throughout the peace process, as it does not provide the level of state autonomy demanded by ethnic minorities as requisite to lasting peace. Participants argued that tethering discussion to the document implies that ethnic armed groups will be required to disarm, and that states will not be guaranteed equal rights.

"They [the Burma Army] have not explicitly said that all ethnic groups have to disarm, but they keep saying that the discussion will be based on the 2008 Constitution," said Nai Tala Nyi, a former executive member of the New Mon State Party (NMSP), who attended the Union Peace Conference this week as a representative of the intelligentsia. The charter stipulated that there be only one military in the Union, and army representatives have repeatedly suggested that non-state armed groups simply lower their guns and join the Burma Armed Forces.

Ethnic representatives said the central government is afraid that states may attempt to secede if given too much autonomy, though ethnic leaders have insisted that they are committed to staying in the Union if a political solution can be found.

"They are very worried that ethnic groups will secede," Tha Main Tun, a central committee member of the Karen National Union (KNU), told The Irrawaddy on the sidelines of the conference. He said his colleague, Kweh Htoo Win, spoke forcefully about the issue on Thursday, but that military representatives responded with apprehension.

Nai Layie Tama, general secretary of the Mon National Party, said the ethnic groups and the government have "a very different idea" about what would qualify as an acceptable form of federalism.

"We want power to be based on the population [of respective ethnic states], but they want power to belong to the central government," Nai Layie Tama said. "We are talking about equal rights, but they are talking about centralized power. We have very different points of view."

The Union Peace Conference, which began on Tuesday, will continue until Jan. 16. The unprecedented meeting marks the first steps in the political dialogue, a new phase for the peace process, after a ceasefire was reached between the government and eight non-state armed groups on Oct. 15 of last year.

The accord was touted proudly by the administration of President Thein Sein as a "nationwide ceasefire agreement," though it has been widely criticized for excluding a number of armed groups. Many others, including some of the country's most power and influential non-state actors, refused to sign the pact out of solidarity with those left out and on account of ongoing conflict in several parts of the country.

A new government led by Aung San Suu Kyi will be formed in March, after her party, the National League for Democracy (NLD), swept a Nov. 8 general election by winning a majority in both houses of Parliament.

Suu Kyi has said that pursuing a lasting peace in the country, which is fractured by decades of civil war, will be the top priority of her administration. This week's discussions are to be archived on the record and presented to the incoming government in advance of a second round of dialogue.

The post Constitution Drives Wedge Into Peace Dialogue appeared first on The Irrawaddy.

Services Likely to Play Key Role in New Economic Plan, Experts Say

Posted: 14 Jan 2016 10:25 PM PST

  Aung San Suu Kyi presents a certificate to a student at the Hospitality and Catering Training Academy at Kawhmu Township, August 23, 2015. (Photo: Reuters)

Aung San Suu Kyi presents a certificate to a student at the Hospitality and Catering Training Academy at Kawhmu Township, August 23, 2015. (Photo: Reuters)

RANGOON — Burma's service sector, not manufacturing, will likely be the focus of national attention after the new government is formed in March, observers predict.

The country's economy is expected to hit a lull in the post-election period, but experts say that the incoming administration will attempt to boost the service sector to keep the national economy from taking too much of a beating.

"Without better infrastructure, foreign investors won't look to Burma. As far as the service sector is concerned, however, they don't need to see a better infrastructure to want to invest," Myat Thin Aung, chairman of the Hlaing Tharyar Industrial Zone and vice chairman of Yoma Bank, told The Irrawaddy.

President Thein Sein has attempted to enhance Burma's manufacturing industry over the course of his five-year tenure, but aside from launching special economic zones (SEZs), he has seen little in the way of results due in part to weak infrastructure and lack of a clear policy.

"We need foreign investors for automobiles, electronics and other heavy industries, but they are waiting for new policies to be implemented," Myat Thin Aung said. "I can see more foreign investors coming but only for the service sector—hotels and tourism, banking, finance."

Soe Tun, chairman of the Automobile Dealers Association and vice chairman of the Myanmar Rice Federation, echoed Myat Thin Aung's sentiments, also voicing some of the substantial problems that have arisen out of trying to construct SEZs.

"We don't have enough electricity to supply these sorts of projects. That's why many investors are looking toward things like hotels and tourism," Soe Tun said. "But we could expect foreign sanctions to be eased on some sectors once the new government comes to power."

Still, steep hurdles await the next administration. For one, it will need to update old rules and regulations in the trading and manufacturing sectors, including removing crippling red tape.

The World Bank's latest report, from October, said that continued economic growth in Burma hinges on sustaining progress with broader macro-structural reforms, such as strengthening the business environment, modernizing the banking sector and prioritizing access to finance.

Tony Picon, director of Collier International Real Estate Agency, said that financial services would grow more quickly if the insurance and banking sectors had an international market.

"The government needs to think of how to open up without swamping local players," he said.

But according to Thein Tun, known as Pepsi Thein Tun, chairman of Tun Foundation Bank and the MGS Group of Companies, the next administration will have its work cut out for it even if its policies work out as planned and the service sector is in full bloom.

"For instance, in the banking sector, even though the government has allowed foreign banks to operate in Burma, they can only lend to foreign investors, not to local ones. And the total capital of local banks, compared to their foreign counterparts, is very weak," he said, noting that each service sector will face its own unique challenges.

"That's why the new government needs to start preparing its policies."

The Myanmar Investment Commission (MIC) reported that Burma received a record US$8 billion in foreign direct investment (FDI) in 2014-15, double that of the preceding year. However, MIC Secretary Aung Naing Oo said that less than half—$3 billion—of this investment entered the country, though the investment commission approved all $8 billion.

The post Services Likely to Play Key Role in New Economic Plan, Experts Say appeared first on The Irrawaddy.

Upper House Approves Controversial Presidential Security Bill

Posted: 14 Jan 2016 10:20 PM PST

   President Thein Sein gives a speech at the Union Parliament in Nyapyidaw March 26, 2014. (Photo: Reuters)

President Thein Sein gives a speech at the Union Parliament in Nyapyidaw March 26, 2014. (Photo: Reuters)

RANGOON — Burma's Upper House of Parliament approved the Presidential Security Bill on Thursday, a controversial proposal that would offer immunity to former heads of state.

The bill, which was provisionally approved by the Lower House in late December, has been sent back for re-approval with minor revisions.

The Presidential Security Bill drew sharp criticism when it was introduced in mid-December, as it appeared to have been expedited for the benefit of outgoing President Thein Sein. The proposed legislation would ensure lifetime personal security and legal exemption for former presidents.

The original draft stipulated that former presidents be "immune from any prosecution for his actions during his term."  Only one member of the Lower House resisted the clause, and it was later amended to add the proviso, "in accordance with the law." The Upper House voted to strike the new language.

The initial draft also provided for a post-presidential bodyguard to be selected and paid for by either the Home Affairs Ministry or the defense Ministry. The Upper House on Thursday reversed an amendment that would limit the power of appointment to Home Affairs.

Upon further review, the Union Parliament is expected to vote on the latest amendments in the next week, before the current session comes to a close and a new legislature dominated by the National League for Democracy convenes.

The post Upper House Approves Controversial Presidential Security Bill appeared first on The Irrawaddy.

China Faces Few Good Options in Taiwan Electoral Outcome

Posted: 14 Jan 2016 10:09 PM PST

Taiwan's Democratic Progressive Party (DPP) chairperson and presidential candidate Tsai Ing-wen greets supporters during a campaigning rally in Hsinchu ,Taiwan, on Jan. 14, 2016.  (Photo: Reuters)

Taiwan's Democratic Progressive Party (DPP) chairperson and presidential candidate Tsai Ing-wen greets supporters during a campaigning rally in Hsinchu ,Taiwan, on Jan. 14, 2016.  (Photo: Reuters)

BEIJING — China isn't going to be happy with the likely victory for Taiwan's pro-independence opposition in this weekend's presidential election, but it has limited options to respond: Any angry reaction could further alienate the island's public, while a passive response could weaken Beijing's influence there.

Beijing may wait and see, and impose economic and diplomatic pressure gradually if a new Taiwanese administration does too much to carve out an identity separate from the mainland. China views the island, which split from the mainland in 1949 amid civil war, as part of its territory that must be reclaimed, by force if necessary.

The two sides have grown closer in recent years amid increased travel, communication and trade under the outgoing Nationalist President Ma Ying-jeou, who pushed for warmer ties.

But fears about the economic threat posed by China, from the mainland's rising technology capabilities to its large pool of college graduates willing to work for less, have pushed many Taiwanese voters toward the opposition Democratic Progressive Party and fueled a "Sunflower Movement" of student protesters who oppose closer relations with the mainland.

Although DPP candidate Tsai Ing-wen has pledged to maintain the status quo, she has refused to endorse a previous consensus between her predecessor and Beijing that considers Taiwan to be a part of China—something Beijing insists is a bottom line to talks between the sides.

Beijing seems resigned to Tsai's victory, and is not likely to take any drastic action initially.

"There will be an observation period," said Dali Yang, an expert on Chinese politics at the University of Chicago.

Most surveys on the island show Tsai holding a commanding lead over the Nationalist Party's Eric Chu.

China has largely kept quiet during the campaign, although its chief official for Taiwan affairs spoke this month of "new challenges" in the year ahead. Beijing's reticence is a tacit acknowledgement that it has little sway over electoral realities in Taiwan, including the Nationalists' weakness and the newly emboldened youth movement.

Tsai has also been careful not to push Beijing's buttons with inflammatory rhetoric. In fact, she has avoided making Taiwan's national identity a key issue in the election, leaving herself room for post-election adjustments, said Peking University China expert Niu Jun.

The election comes barely two months after a historic meeting in Singapore between Ma, the outgoing president, and China's Xi Jinping, the first face-to-face encounter between the sides' heads of state since they split in 1949 amid a bitter civil war.

The symbolic meeting was widely seen as an attempt by Beijing to elevate the status of the presidential office and lock-in high-level contacts between the sides before a change of administration.

China hoped that would set an important precedent and offered extraordinary concessions to make it happen, including agreeing not to use formal titles or have Chinese flags in the room. A major meltdown in relations could scupper hopes for another such encounter while making Xi's flexibility look ill-advised, said University of Virginia China scholar Brantly Womack.

Beijing "will lose face if the handshake proves to [have been] a mistake," Womack said.

China isn't spoiling for yet another crisis, with a stock market in free-fall, sharpening maritime disputes, an ongoing campaign against corruption and unrest among Uighur Muslims in the northwestern Xinjiang region. China this year will also undertake an ambitious streamlining of the 2.3 million-member People's Liberation Army that will see hundreds of thousands job cuts.

Still, China can't afford to be wholly passive and see its relevance to Taiwan erode. If Tsai continues to reject the so-called "One China Policy," roll-back Ma's pro-China agenda or aggressively seek to expand Taiwan's international presence, a response could be in the offing.

Beijing could initially suspend contacts between the bodies tasked with negotiating trade and travel agreements. Or it could exclude Taiwan or restrict its participation in international organizations, especially China's newly established Asian Infrastructure Investment Bank.

China might also start pressing countries that have diplomatic ties with Taiwan—22 at present — to sever relations.

Beijing will "test Tsai and if it concludes that Tsai is 'responding inappropriately,' it will get more negative," said Steve Tsang, senior fellow at the University of Nottingham's China Policy Institute.

Chinese authorities could also reduce the number of mainland tourists it allows to visit Taiwan, or shift some of its state companies' large orders to firms from other countries, although most observers say economic measures are unlikely. Taiwan relies on the mainland market to absorb about 30 percent of its exports, while Chinese companies, including some with ties to the military, are hotly pursuing stakes in Taiwanese high-tech firms.

Even less likely is that Beijing would mobilize its army in an attempt to intimidate Tsai and the Taiwanese public. Previous attempts to do this have backfired, including missile launches during the run-up to a 1996 election that were widely seen as solidifying support for the candidate Beijing opposed.

While China continues to point more than 1,000 missiles at the island, the military hasn't been openly deployed in such a role in almost two decades.

"I do not expect any sort of security crisis," said Alan Romberg, East Asia Program direct at the Stimson Center think tank in Washington DC. "I suppose both sides could mismanage things too badly that there could be a vicious downward cycle of action and reaction, but I frankly don't foresee that."

The post China Faces Few Good Options in Taiwan Electoral Outcome appeared first on The Irrawaddy.

Protests in Indian Kashmir After Young Man’s Body Is Found

Posted: 14 Jan 2016 09:34 PM PST

A Kashmiri protester throws a stone towards Indian police during a protest in Srinagar, India January 8, 2016.  (Photo: Reuters)

A Kashmiri protester throws a stone towards Indian police during a protest in Srinagar, India January 8, 2016.  (Photo: Reuters)

SRINAGAR, India — Police fired warning shots and tear gas on Thursday to disperse hundreds of protesters shouting anti-India slogans after the body of a college student with his throat slit was found in the Indian-controlled portion of Kashmir.

The protesters accused the Indian army of torturing and killing the engineering student, Owais Bashir Malik. The army denied the allegation.

The protesters hurled rocks after the body was found on Thursday near Malik's home in Srinagar, the region's main city, and police tried to clear them from a road leading to the airport. There were no immediate reports of injuries.

Anti-India sentiment runs deep in Kashmir, a Himalayan region divided between India and Pakistan and claimed by both.

Since 1989, rebels have been fighting for Kashmir's independence or merger with Pakistan. More than 68,000 people have been killed in the uprising and a subsequent Indian military crackdown.

The rebel groups have largely been suppressed by the Indian troops, and resistance is now principally expressed through street protests.

Tanvir Ahmed, a relative of Malik, said he went missing two days ago.

"Last evening we went to a nearby army camp where officials admitted that he was with them and promised he would be released the next day," Ahmed said. "This morning we saw his mutilated body."

Army spokesman Col. Nitin N. Joshi denied that Malik had been in the army's custody. "The allegation is totally baseless. We don't operate in the area at all," he said.

Police Inspector-General Syed Javaid Mujtaba Gillani said police are investigating the case as a possible murder.

The post Protests in Indian Kashmir After Young Man's Body Is Found appeared first on The Irrawaddy.

Indonesia Says Attack Underlines Emergence of Islamic State Threat

Posted: 14 Jan 2016 09:17 PM PST

Indonesian police stand near a boarded up police box that was hit during Thursday's gun and bomb attack in central Jakarta, on Jan. 15, 2016. (Photo: Darren Whiteside / Reuters)

Indonesian police stand near a boarded up police box that was hit during Thursday's gun and bomb attack in central Jakarta, on Jan. 15, 2016. (Photo: Darren Whiteside / Reuters)

JAKARTA — Indonesia must strengthen its defenses against Islamic State and work with neighboring countries to fight it, Jakarta's police chief said on Friday, a day after an attack by suicide bombers and gunmen in the heart of the Southeast Asian nation's capital.

Just seven people were killed in the three-hour siege near a busy shopping despite multiple blasts and a gunfight, and five of them were the attackers themselves.

Nevertheless, it was the first time the radical group has targeted the world's most populous Muslim nation, and the brazenness of the attack suggested a new brand of militancy in a country where low-level strikes on police are common.

Police chiefs across the country were put on high alert, and security was stepped up on the resort island of Bali, a draw for tourists from Australia and other Asian countries.

"We need to pay very serious attention to the rise of ISIS," Jakarta police chief Tito Karnavian told reporters outside the city's oldest department store, Sarinah, where the attack unfolded on Thursday.

"We need to strengthen our response and preventive measures, including legislation to prevent them … and we hope our counterparts in other countries can work together because it is not home-grown terrorism, it is part of the ISIS network," he said, using a common acronym for the Syria-based group.

Experts agree that there is a growing threat from radicalized Muslims inspired by Islamic State, some of whom may have fought with the group in Syria. However, they said the low death toll on Thursday pointed to the involvement of poorly trained local militants whose weapons were crude.

An Indonesian and a man of dual Canadian-Algerian nationality were killed. Twenty-four people were seriously wounded, including an Austrian, German and a Dutchman.

Islamic State said in its claim of responsibility that "a group of soldiers of the caliphate in Indonesia targeted a gathering from the crusader alliance that fights the Islamic State in Jakarta."

Karnavian confirmed that Islamic State was responsible and named an Indonesian militant, Bahrun Naim, as the mastermind.

Police believe Naim leads a militant network known as Katibah Nusantar and is pulling strings from the Syrian city of Raqqa.

"We were informed by intelligence that an individual named Bahrun Naim … instructed his cells in Indonesia to mount an attack," Karnavian said. "His vision is to unite all ISIS supporting elements in Southeast Asia, including Indonesia, Malaysia and the Philippines."

Islamist militants from those three countries have a record of working together and several Malaysians are known to have carried out suicide attacks in the Middle East.

Echoes of Paris

Indonesia has seen attacks by Islamist militants before, but a coordinated assault by a team of suicide bombers and gunmen is unprecedented and has echoes of the sieges seen in Mumbai seven years ago and in Paris last November.

In a recent blog post, entitled "Lessons from the Paris Attacks," Naim had urged his Indonesian audience to study the planning, targeting, timing, coordination, security and courage of the jihadis in the French capital.

Australian Attorney-General George Brandis, who was in Jakarta recently to bolster security coordination, told the Australian newspaper he had "no doubt" Islamic State was seeking to establish a "distant caliphate" in Indonesia.

The country had been on edge for weeks over the threat posed by Islamist militants, and counter-terrorism police had rounded up about 20 people with suspected links to Islamic State.

Indonesia has the world's largest Muslim population, the vast majority of whom practice a moderate form of Islam.

The country saw a spate of militant attacks in the 2000s, the deadliest of which was a nightclub bombing on Bali that killed 202 people, most of them tourists.

Police have been largely successful in destroying domestic militant cells since then, but officials have more recently been worrying about a resurgence inspired by Islamic State.

Alarm around the world over the danger stemming from Islamic State increased after the Paris attacks and the killing of 14 people in California in December.

On Tuesday, a Syrian suicide bomber killed 10 German tourists in Istanbul. Authorities there suspect the bomber had links to Islamic State.

Harits Abu Ulya, an expert on militancy who knows Bahrun Naim, said he expected more attacks.

"This is an indication that he has been learning from the Paris attacks and he has studied the strategy," he said. "I still have doubts about the capability of the local militants to carry out attacks on a bigger scale. But it is a possibility."

The post Indonesia Says Attack Underlines Emergence of Islamic State Threat appeared first on The Irrawaddy.

Kachin Displaced Pin Their Hopes on New NLD Government

Posted: 14 Jan 2016 06:32 PM PST

A group of women sew traditional Kachin headgear at the Zi Un displacement camp in Myitkyina on Jan 7, 2016. The task is painstaking—it takes 40 to 50 minutes to finish one headpiece, for which they receive 100 kyats ($0.08). (PHOTO: Thin Lei Win / Myanmar Now)      

A group of women sew traditional Kachin headgear at the Zi Un displacement camp in Myitkyina on Jan 7, 2016. The task is painstaking—it takes 40 to 50 minutes to finish one headpiece, for which they receive 100 kyats ($0.08). (PHOTO: Thin Lei Win / Myanmar Now)

MYITKYINA, Kachin State — For more than six months in 2011, Ywe Ja refused to leave her home in Burma's Kachin State despite heavy fighting around her village. It was where she was born, and she had built a life there as a teacher with a farmer husband and a young child.

"Then the authorities start seeing Kachins as part of the KIA [Kachin Independence Army]. Business and social rivals could accuse you of having links with the KIA and the army would arrest you without any investigations," she said.

Worried that her husband would fall prey to these suspicions and heavily pregnant with her second child, she finally left Tar Law Gyi, a village about two hours' drive from Myitkyina, the Kachin State capital, in March 2012.

Two weeks after arriving at the St. Paul Jan Mai Hkawng camp, she gave birth.

"I never thought I'd end up staying here so long," she said, sitting in the thatched-walled meeting room of the camp that she now helps to manage with the support of Karuna Myanmar Social Services, run by the Catholic Church. There is no more fighting in her village, but her family has not returned, fearing the continued presence of the Burma Army and land mines in the area.

For the first time since leaving her home, however, Ywe Ja is full of hope.

"I didn't vote in the 2010 elections because I didn't think it was going to make a difference. This time, I woke up really early to vote. I'm very happy that NLD won. I think they will prioritize the peace process," she told Myanmar Now, referring to Aung San Suu Kyi's National League for Democracy, which won the Nov. 8 election in a landslide.

It was a sentiment echoed by other internally displaced people (IDPs) this correspondent spoke to. They are pinning their hopes on the NLD government to achieve peace and begin the process of demilitarization that would allow them to finally go home, almost five years after fighting resumed between the army and Kachin rebels.

Fighting has displaced around 100,000 people in Kachin and northern Shan States since June 2011 after a 17-year ceasefire broke down over long-held grievances. With peace proving elusive, the displaced—in both government and rebel-controlled areas—have become disillusioned.

"The longer [the IDPs stay in these camps], the more difficult it is for them. There are no jobs nearby and there are land constraints to create your own livelihoods. Foreign aid has been reducing and because everything is up in the air, those who are helping are losing steam and the displaced are losing hope," said Phyu Ei Aung from Metta Foundation, one of Myanmar's largest non-governmental organizations that has been providing emergency assistance since 2011.

Violence against women is also rife, with a majority of cases being husbands taking out their frustration over the situation on their wives, she added. Metta documented 583 cases in 41 camps in the 15 months between April 2014 and March 2015.

It is little wonder then that many have been galvanized by the election results, where NLD's strong showing in ethnic states surprised observers. In Kachin, it won 22 out of 30 elected seats for the two houses of Parliament and more than half of the state legislature, giving it a strong mandate to govern at both local and national levels.

"All the displaced are looking forward to the new government to create [a country] where everyone is able to live happily and peacefully regardless of their race and religion," said Ja Khun Ya, a 40-year-old from the same village as Ywe Ja.

Lives Interrupted

Since fighting resumed, the IDPs have been languishing in small, hastily-built shelters that flood in monsoon and become unbearably hot in the summer, facing dwindling aid support and an uncertain future.

The United Nations' World Food Programme, which provides food assistance to Kachin IDPs, told Myanmar Now it is facing a US$51 million shortfall. The organization has already started to replace food assistance with cash to IDPs in places with access to markets but said this is not directly linked to the shortfall.

The situation is even more dire for those who are outside of government-controlled areas due to their remote locations and even more scarce aid.

Many fear the worst is yet to come.

"In the camp, we don't have any income, only expenses," Lahtaw Khun Ya, also 40, said. "I have eight children and my husband was diagnosed with diabetes last year so he cannot do manual labor. But he went with some friends for a laborer job today," she added.

The IDPs say they are willing to work, but jobs are few and far between. They say most end up working in construction sites for a daily wage of around $2.30 for women and $4.70 for men, but much less sometimes.

"The employers sometimes pay us less. They would say, "You are receiving support from aid agencies so 2,000 kyats ($1.50) is enough." We don't have a choice," Ja Khun Ya said.

In the bigger Zi Un camp, where 710 people are supported mainly by the Kachin Baptist Convention, dozens of women make money sewing traditional Kachin headgear, which allows them to stay close to their children. It is a time-consuming task, taking about 40 to 50 minutes to earn 100 kyats ($0.08) for each headpiece.

Young men, meanwhile, have dropped out of schools to find jobs.

Twenty-year-old Zau Phan says he would like the opportunity to finish his high school. After failing his 10th standard exam last year, he now works as a tenant farmer in another town. He was one of the few IDPs who did not vote.

"I was away and I'm not interested in politics, but yeah, I'm hoping for change. But it's difficult to guess what would happen," he said.

Lingering Scars

Aid workers, however, warn against setting too high an expectation.

"I don't think we will see any drastic changes for a year or two. Even if the IDPs can go back to their villages because the political situation is now good, we would still need to assist them so they can go back to making a living like they did before the fighting," Metta's Ei Phyu Aung said.

Lu San, a 39-year-old mother of four who used to run a small store, said she went through the lengthy bureaucratic process to gain approvals to briefly go back to her village across the river from Myitkyina a few months after fleeing. They had left the shop and hundreds of baskets of paddy.

"There was nothing left. All the valuable stuff had been looted. I heard later the army took them," she said, her voice rising at the memory.

Mental scars will also need to be healed. Many lost friends and families, and almost everyone lost their possessions. They have also heard tales of neighbors and fellow villagers being tortured, maimed and killed, mainly by the Burma Army, fuelling fear and hatred as well as distrust among the different ethnic groups that make up these villages.

Born in 1942, Hkun Baw La says he has heard and seen what he said were atrocities committed by the military government toward ethnic minorities in the 1960s. Yet ordinary citizens forged lasting friendships and in his village, home to Shan, Kachin and Bamar, a Christian church and a Buddhist monastery stood side-by-side before the fighting, he said.

Now there are people's militias in many villages, including Hkun Baw's, where the Shan and Bamar received weapons from the government to protect themselves against the KIA, the IDPs said.

Lu San has a plea for the NLD and the political leaders who are currently in Burma's grandiose capital Naypyidaw for a five-day peace conference.

"Please withdraw the troops as soon as possible, and please prioritize de-mining and sending us back. We are yearning to go home."

The post Kachin Displaced Pin Their Hopes on New NLD Government appeared first on The Irrawaddy.

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