The Irrawaddy Magazine |
- The Irrawaddy Business Roundup (Jan 16, 2016)
- Dateline Irrawaddy: ‘Suu Kyi Is Having to Make a lot of Compromises’
- Artist APK: ‘Cartoons in State-run Newspapers Aren’t Real Cartoons’
| The Irrawaddy Business Roundup (Jan 16, 2016) Posted: 15 Jan 2016 07:14 PM PST  Fishermen maneuver their boat at Myanmar International Terminals Thilawa (MITT) port outside Rangoon, October 1, 2012. (Photo: Reuters) Outgoing Government Hands Port Deals to Well-Connected Regional Firm The administration of President Thein Sein has given concessions to operate two dry ports to a regional logistics giant, the latest contract to be awarded after the election defeat of the ruling Union Solidarity and Development Party in November. According to a report in the Wall Street Journal, leaders of the National League for Democracy are concerned that projects are being rushed through before power is handed over in the coming months. The opposition party won an overwhelming majority at the polls and is set to lead the next government, which will inherit projects approved by the outgoing administration. The government announced last month that Chinese firm CITIC would build a port and industrial zone as part of a special economic zone development in Kyaukphyu, Arakan State. The supposedly open tendering process, which was repeatedly delayed, ended up awarding the deals to a consortium led by the state-owned Chinese firm that had long been involved in the SEZ plan.  Corporate sellout Simon Lewis, left, in search of a good scoop in Mae Sot, Thailand. (Photo: Simon Lewis / Facebook) "One losing bidder complained that the government delayed the tender, without providing any updates to companies in the running, but sped it up in recent weeks," the Wall Street Journal reported. "Two other businesspeople said contracts for other projects, including for road construction and energy production, are being passed through only now, in the last weeks of the administration." This week, it emerged that the Ministry of Rail Transportation's Myanma Railways awarded the rights to two potentially lucrative port developments—in the country's major economic centers of Rangoon and Mandalay—to a company that has high-level links in Burma and the region. The firm, Kerry Logistics, announced on Monday that it had won the contract, which it said was part of the Burmese government's efforts to "seize new opportunities for cross-border trade upon entering the ASEAN Economic Community," referring to the regional integration scheme that officially began at the start of the year. "The inland ports will serve as container and cargo terminals linked by railway to major routes in the country, and as hubs for the exporters, importers and domestic logistics service providers of cargoes in and out of Yangon and Thilawa Ports, as well as for cross-border cargoes from neighboring countries such as China and Thailand," Kerry Logistics said in its statement. The firm is part of the Kuok/Kerry Group, founded by Malaysian-born billionaire Robert Kuok. Kuok's business empire also includes Shangri-La Hotels and Resorts, which owns and operates the upscale Sule Shangri-La hotel and Shangri-La Residences in Rangoon. According to a U.S diplomatic cable released by WikiLeaks, the hotel, formerly known as Traders, was built in a partnership between Kuok Singapore Ltd, and Steven Law, the US Treasury-blacklisted head of drug-trafficking linked local firm Asia World. Asia World's sprawling operations include running Rangoon's main port and its airport. The new dry port concessions were officially awarded to Kerry Logistics' Singapore-based subsidiary KLN (Singapore) Pte Ltd, part of Kerry Logistics Network, which has its headquarters in Hong Kong. That company is chaired by George Yeo, formerly a senior official in the Singaporean government. Yeo served as Singapore's Foreign Minister from 2005 to 2011, and during that time argued publicly against regional and international sanctions against the Burmese military regime. That regime ceded power in 2011 to the government led by the military-backed USDP, headed by retired General Thein Sein. In Kerry Logistics' statement, Yeo thanked the Burmese government for its "trust" in the company. "Given Kerry Logistics' presence in ASEAN, our goal is to further strengthen the linkage among countries in the region and seek accelerated growth by developing an integrated Greater Mekong Region platform covering Thailand, Cambodia, Myanmar and Laos," he was quoted saying. Burma Finance Official Welcomes New China-Led Bank Finance Minister Win Shein is set to attend the official opening Saturday of the Asian Infrastructure Investment Bank (AIIB), a Chinese-led initiative that is seen as an effort to shake up US dominance of global financial institutions. The Chinese state newswire, Xinhua, said in a report that Burma "anticipates good prospects" from the bank's opening, which will be attended by Chinese President Xi Jinping and Premier Li Keqiang. The report cited Burma's Deputy Minister of Finance Maung Maung Thein, who said that Win Shein will personally attend. "Our expectation and view on the opening of the AIIB are good and clear, that was why we participated as a founding member," Maung Maung Thein was quoted saying. "The AIIB is assumed as a dependable bank which supports regional development." Burma will contribute US$264.5 million to the bank's capital, but the country could turn out to be a major beneficiary of the bank's largesse—at least $50 billion. While Burma is in desperate need of more investment in infrastructure developments, its relationship with China is complicated. The bank is officially multilateral and involves a number of Western nations, but China will have a veto over funding decisions, and is the biggest financier of the bank. Prior to the political and economic opening that began in 2011, China was by far the largest investor in the country, and was backing major projects in sectors from mining to energy. Thein Sein in 2011 suspended work on the Chinese-led Myitsone hydropower dam, and new Chinese investments all but dried up. More recently, however, Chinese interests were given a boost by the awarding of the contract to build a port and industrial zone at Kyaukphyu to a Chinese state-run firm last month. But it remains to be seen how a new government led by the National League for Democracy will deal with the domestically controversial issue of Chinese investment. Historian Thant Myint-U wrote in an article for Foreign Policy this week that Burma needs to "reset its engagement with its giant neighbor." As well as realizing that development cannot take place at the expense of peace with ethnic armed groups, Burmese leaders should be more active in directing Chinese investment. "[R]ather than letting China take the lead, Burma should formulate its own comprehensive plan for the multi-billion dollar infrastructure development it needs to revitalize its economy," Thant Myint-U wrote. "China should be invited and encouraged to play a major role, but only within a framework set by the Burmese government in close consultation with the affected communities." Towers Company Gets Backing From European Development Financiers Mobile phone tower company Irrawaddy Green Towers is getting $122 million of funding from a group of European development financing institutions, amid growing competition in the telecommunications infrastructure sector. The Netherlands Development Finance Company, known as FMO, announced last month that it had arranged the funding, which also involves other European state-linked financial institutions. A $109 million loan and a smaller "subordinated" loan of $13 million, over periods of eight and nine years, respectively, will help Irrawaddy Green Towers toward its goal of building more than 2,000 towers as Burma's mobile network expands, the announcement said. "The senior loan is syndicated among European Development Finance Institutions with following participations: Deutsche Investitions- und Entwicklungsgesellschaft mbH DEG (Germany), Proparco (France), CDC Group (Great Britain), BIO (Belgium) and OeEB (Austria)," the statement said. Irrawaddy Green Towers’ website says it is the only company building phone towers in Burma with any local ownership. Its "sponsors" include local firm Barons Telelink, as well as executives from Dubai-based Alcazar Capital Limited and M1 Group, a investment firm based in Beirut. In March 2014, the company announced that it had been selected by Telenor to build and manage 1,438 towers for the Norway-based company's mobile phone network in Burma. A number of companies are competing for tower-building business in the mobile telecoms sector, including Apollo Towers, Pan Asia Towers and Myanmar Infrastructure Group. After Malaysian conglomerates Axiata and OCK Group also entered the market late last year, analysts at BMI Research predicted that the sector could be set to see consolidation, with larger players buying up smaller competitors. A report this month in Global Trade Review, noted that the latest injection of investment comes from development lenders, rather than from commercial banks. The World Bank's International Finance Corporation is also lending up to $150 million to Ooredoo Myanmar to finance the roll-out of its network. "[T]he fact that there are no commercial banks on the latest deals suggests that they may be continuing to act cautiously towards Myanmar, amid confusion over ownership of assets which could result in banks lending to sanctioned individuals," the magazine reported. Study Completed for Mon State Gas Power Upgrade A Norwegian consulting firm has announced that it has completed a feasibility study for a World Bank-funded gas power station in Mon State, making way for the plant to be up and running on less than two years. A combined cycle gas turbine plant will be installed to replace an existing, and less efficient, gas turbine power station in Thaton Township. Funding of $140 million for the project was approved by the World Bank in 2013. In a recent announcement, Norconsult said it had conducted the study for the Myanmar Electric Power Enterprise, with the consulting services paid for by the Norwegian government. The firm said the new plant would be producing power in less than two years, and would provide cheaper electricity than other deals the government has signed recently with private firms. The government has been rushing to sign contracts with independent power producers, including a number of other gas-fired power stations, to address the chronic shortfall in power supply that has been a drag on industrial development. "The new plant will be substantially more fuel-efficient than the old plant, with a thermal efficiency more than twice as high as the old plant," the Norconsult announcement said. "The new plant will therefore generate more than twice as much power per year with the same fuel consumption as the old plant." China's Sino Great Wall Wins Burma Construction Contracts: Report Chinese company Sino Great Wall has reportedly been awarded two construction contracts in Burma by a local company. According to its website, Sino Great Wall International Engineering has worked closely with the Chinese government on domestic construction projects, and is also involved in building hotels and other luxury developments in Sri Lanka, Cambodia and Kuwait, among other locations. A Reuters brief on Thursday cited Chinese media saying that Sino Great Wall's "engineering unit wins bid for two construction contracts by Maha Land Development Co Ltd in Myanmar for a combined $200 million." Maha Land Development appears to be part of local conglomerate Mottama Holdings, which has interests in metals and retail. The post The Irrawaddy Business Roundup (Jan 16, 2016) appeared first on The Irrawaddy. |
| Dateline Irrawaddy: ‘Suu Kyi Is Having to Make a lot of Compromises’ Posted: 15 Jan 2016 06:56 PM PST  The Irrawaddy's founding editor Aung Zaw, and senior editors Thalun Zaung Htet and Htet Naing Zaw join this week's Dateline Irrawaddy panel. (Photo: The Irrawaddy) Aung Zaw: Welcome to Dateline Irrawaddy! This week, we'll discuss the challenges that await Daw Aung San Suu Kyi's National League for Democracy [NLD] government. Irrawaddy news crew members Ko Thalung Zaung Htet and Ko Htet Naing Zaw will join me for the discussion. We're all anticipating a peaceful transfer of power, which will be the first in Burma's modern history. According to the procedure, the new Parliament will convene in February and power will be transferred in March. If this really happens, it is something to take pride in as a country that refers to itself as 'Shwe Myanmar' [Golden Myanmar]. But before any of this happens, there's a question: Will Daw Aung San Suu Kyi become president? She said both before and after the election that she would be "above the president," and she's repeatedly commented on her desire to assume the country's highest office. But Article 59[f] of the Constitution bars her from the presidency. So let's discuss whether she'll be able to become president. Thalun Zaung Htet: Article 59[f] is still in force. But Thura U Aung Ko of the Union Solidarity and Development Party [USDP] said that Daw Aung San Suu Kyi can assume the presidency if that clause is suspended. Article 59[f], which lays out an eligibility criterion for the presidency, states that the spouse or children of the president shall not owe allegiance to a foreign power. Daw Aung San Suu Kyi has two sons who are British citizens, which serves as a barrier to her bid for the presidency. If the article is suspended, Daw Aung San Suu Kyi can become president. But some legal experts argue that it can't be suspended. Parliament's speakers have said that bills proposed by the government and lawmakers for debate will be postponed until the next Parliament convenes. So given the circumstances, it's impossible to suspend Article 59[f], and it's unlikely that Daw Aung San Suu Kyi can become the president through the Parliament. However, Commander-in-Chief Min Aung Hlaing, President U Thein Sein and Daw Aung San Suu Kyi have been in frequent communication with each other, so there might be another means by which Daw Aung San Suu Kyi can take up the office of president. AZ: The 2008 Constitution has drawn criticism because it was drafted against the will of the people by a military regime that calls itself the Tatmadaw. To some people both in the government and in the military, this paves the way for changing the Constitution. It's beyond a doubt that the people want Daw Aung San Suu Kyi as their president. It doesn't matter if she actually becomes president, because people across the country already regard her as the country's leader, a sentiment they overwhelming showed in the November election. She's essentially the leader of this country. Former Snr-Gen Than Shwe has also reportedly endorsed her as Burma's future president. What's your view on this, Ko Htet Naing Zaw? Htet Naing Zaw: I'm afraid this power transfer won't be as smooth as the media says. According to NLD sources, Daw Aung San Suu Kyi is having to make a lot of compromises with President U Thein Sein and Military Chief Snr-Gen Min Aung Hlaing. For example, she's been asked to keep the government's lead peace negotiator, Minister U Aung Min, and appoint certain members of the USDP to her cabinet. And some compromises that Daw Aung San Suu Kyi has been quiet about have pushed her into a corner. She's said she will form a government of national reconciliation. Still, some NLD members don't fully understand this situation and have even asked for minister positions. AZ: I heard the NLD will release the list of nominees for its cabinet at the end of the month. TZH: It's already out. They made a provisional list at the central executive committee meeting a couple of days ago. AZ: I'd like to pick up what Ko Htet Naing Zaw said. Daw Aung San Suu Kyi has had to go her entire political life making compromises—she's 70 now. Even though she's been given a mandate by the people, she has to negotiate. This reflects the complicated political problems of our country. Let's talk about what would happen if Daw Aung San Suu Kyi were to become president and assume executive power for the first time. Previously, she was the opposition, and she was described in both local and international media as the democratic opposition leader. But in March the media will start to talk about 'the Daw Aung San Suu Kyi government.' Let's discuss what challenges there will be. Ko Thalun, I think peace is the most important issue for Burma. TZH: The Union Peace Conference [the start of a political dialogue involving the government, ethnic armed groups and other national stakeholders] kicked off in Naypyidaw on Jan. 12. Daw Aung San Suu Kyi only vaguely talked about peace in her speech, stressing that all ethnicities, including both NCA [national ceasefire agreement] signatories and non-signatories, will have to work together to achieve peace. It's the first time she's attended peace talks since she said that she would lead the peace process. One could say that this is her first step toward building peace. But there are lots of challenges waiting for her in this process. There is distrust between the military and ethnic groups and also between government and the military. AZ: Again, some ethnic groups don't trust Daw Aung San Suu Kyi. TZH: Even though there is distrust, she shouldn't hold a peace conference or a ceasefire signing. She should rebuild this trust. Only after that will she be able to proceed with the peace process. U Thein Sein's government has constantly engaged in the process, but it's failed to achieve the desired results because it could not rebuild trust. The [government-backed] Myanmar Peace Center has supposedly held hundreds of peace talks. But they didn't do what they needed to do—build trust. So even if a truce is signed, peace won't prevail. There are still clashes happening around the country. AZ: NCA signatories as well as non-signatories will be waiting to see what long-term and short-term policies on the peace process an NLD-led government will come up with. Donor organizations, most of them from Western countries, as well as from China and other neighboring countries in the region, will also be waiting. The question is whether the NLD and Daw Aung San Suu Kyi really understand the issue, the cause of this civil war and the ensuing conflict. HNZ: We can be more optimistic about the peace process if Daw Aung San Suu Kyi and the NLD government don't walk down the path paved by President U Thein Sein but instead go down another. AZ: What do you mean? HNZ: For starters, holding individual talks with each ethnic group to build trust and then holding collective talks. The key demand of ethnic groups is equality. The peace process will work better if the NLD approaches each group with goodwill. Again, the NLD needs to convince the military of the merits of national reconciliation. If it caters to the military, it will only undermine trust between the NLD and ethnic groups. AZ: It needs to be careful that it doesn't get stuck between the two. If ethnic groups think that the NLD has links with the military, they won't trust Daw Aung San Suu Kyi. This is a huge hurdle. I'd like to draw attention to ethnic people in hilly regions, especially in northern Burma. Looking back, most ethnic people in northern Burma have never been under military rule. They've never been under anyone's control. That's why those who attempt to take control of those areas are facing so many difficulties now. It would be very difficult for Burma to achieve peace, no matter who is leading the country, unless he or she understands the complicated conflicts occurring there. People have high expectations for Daw Aung San Suu Kyi and the NLD, and hope that they will be able to create jobs for people and improve economic, social, health and educational standards. They think, 'We've voted for them, now what will they do for us in return?' The government is supposed to serve the interests of the people, isn't it? It must serve the public. A leader elected by the people is the servant of the people. What will the NLD do for the people? TZH: They've adopted a six-point economic policy, and there are 10 points in the details. However, the points are very broad. The NLD will come to power in March. But they've yet to specify economic policies for Burma's development. They always say, read our election declaration. I've read it and still can't find anything satisfactory. AZ: It's a huge challenge. In spite of its rich resources, Burma is still considered a third world country, and indeed it's one of the poorest countries on the planet. But there's great potential. Businessmen at home and abroad are waiting to see what policies the NLD will adopt to overcome Burma's current economic challenges, how it will make use of the country's potential. My final question: Ko Htet Naing Zaw, what opportunities can the NLD create for social, economic and educational progress for the country? And what will be the challenges? HNZ: Young people hope that there will be more job opportunities once Daw Aung San Suu Kyi's government comes to power. But as Ko Thalun Zaung Htet said, their manifesto is very vague, and it hasn't outlined any details on how to create jobs. However, there will be more job opportunities if foreign investments come into Burma. The international community expects Daw Aung San Suu Kyi's government to successfully assume power, and there is a direct relationship between foreign investment and job opportunities. So it's fair to conclude that job prospects will be greater once the NLD comes to power. AZ: That's very general. It's not that foreign investment will increase just because Daw Aung San Suu Kyi's government has come to power. Foreign investment will come only when policies are good. Isn't the most important question how the government will handle this? Challenges lie ahead for the NLD in 2016. The post Dateline Irrawaddy: 'Suu Kyi Is Having to Make a lot of Compromises' appeared first on The Irrawaddy. |
| Artist APK: ‘Cartoons in State-run Newspapers Aren’t Real Cartoons’ Posted: 15 Jan 2016 06:49 PM PST  APK, one of Burma's most revered cartoonists, in Rangoon, 2016. (Photo: Kyaw Hsu Mon / The Irrawaddy) Prior to the second annual Nobel-Myanmar Literary Festival, held from Jan. 16-18 at Rangoon's Event Park, The Irrawaddy sat down with cartoonist APK to discuss the value of comics and the theme of this year's festival: children's literature. Comics are declining in popularity in Burma, and it seems like only cartoons are doing well. Why is this happening? The fact that the number of dailies and weeklies has increased has contributed to a rise in the popularity of cartoons. Still, even though cartoons are strong in terms of quantity, in terms of quality, they have a long way to go—especially online ones. Cartoonists today can post their work online, such as on Facebook, anytime, anywhere. Social media, generally, is a contributing factor to the rise of cartoons. But the workmanship and ideas are very weak. Many trees will bear flowers, but it takes time for beautiful flowers to grow, so to speak. Though there are more cartoons out now, it seems like most of them fall short in some way. For example, cartoons in government-run newspapers often lack humor, and cartoons in private publications are often biased toward the opposition. What's your take on this? Cartoons in state-run newspapers aren't real cartoons, at least they shouldn't be called cartoons. The workmanship is poor, not to mention the ideas. When I met government officials, I told them that their cartoons are of poor quality and the money paid for them small. It seems that people at state-run newspapers extend the offer to draw cartoons only to those who are close to them. These cartoons don't have any standards. As for cartoons in private dailies and journals, it depends on the editors. There are some editors who fail to look carefully at cartoons before publication—fail to check spelling or don't know which pages to put cartoons on, for example—and some editors who are responsible for some of the good cartoons that have come out. And sometimes cartoonists don't think seriously enough about their cartoon's idea, and the pay that they receive is chicken feed. These are a few reasons why cartoons are how they are now. But we shouldn't be disappointed. We should be optimistic about the number of cartoons being created, because as the quantity increases, those who can make quality cartoons will also emerge. I welcome them all. The Nobel-Myanmar Literary Festival this year will place an emphasis on children's literature because recently there have been fewer children's books. What do you think is necessary to boost the amount of literature we're seeing? Change primarily hinges on the economy. If a country is poor and its economy declining, there will be a similar slump in other areas. If people were able to fulfill their basic needs, there would be people to create quality things, and there would be greater consumer support. At the moment, however, cartoonists must work quickly, without regard to quality, just to satisfy their stomachs, and publishers only care about filling blank pages in their publications. If this is the case, then does getting the industry to pick up depend solely on businessmen? Who else is responsible? Businessmen buy football teams, but those football teams can still lose. We can't work like that. If everyone gets rich, more people will create and read things of good quality. Again, this mainly depends on the economy. If the economy is strong, the comics industry will also be strong—if businessmen are willing to make big investments, the industry will surely develop. Still, none of this can be done alone, and things will need to be developed step by step. Do cartoonists plan to establish a cartoon museum, one that will feature the profiles and works of cartoonists from previous eras? In our country, even the national library isn't functioning properly. What can we do? But perhaps with collaborative efforts we'll see something like this. The post Artist APK: 'Cartoons in State-run Newspapers Aren't Real Cartoons' appeared first on The Irrawaddy. |
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